HomeMy WebLinkAbout5.c. Presentation and Acceptance of 2003 Comprehensive Annual Financial Report (CAFR)AGENDA ITEM: ' Presentation and Acceptance of 2003
AGENDA SECTION:
Comprehensive Annual Financial
Department Heads Report
Report CAFR
PREPARED BY: Jeff May, Finance Director
AGEN
#5
ATTACHMENTS: Resolution & 2003 CAFR
APPROVED BY:
RECOMMENDED ACTION: Motion to adopt A RESOLUTION ACCEPTING THE 2003
COMPREHENSIVE ANNUAL FINANCIAL REPORT.
ACTION:
ISSUE Review and accept 2003 CAFR
BACKGROUND A representative from our audit firm, Virchow, Krause & Company, will be
here on Tuesday evening, June 15th, to review the City of Rosemount's 2003 CAFR. The
representative will give a brief presentation, highlighting items that may be worthy of your
attention, especially the GASB 34 implementation, and also be available to answer any
questions that you may have. After you have reviewed your CAFR, if you have no further use
for it, please return it to me so I can use it as an extra copy for people or organizations that
may request them'. Thank you!!
SUMMARY
Recommend the above motion to accept the 2003 CAFR.
AF
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2004-
A RESOLUTION ACCEPTING THE 2003 COMPREHENSIVE ANNUAL
FINANCIAL REPORT''
WHEREAS, the City of Rosemount has -been presented its 2003 Comprehensive
Annual Financial Report, prepared by the audit firm of Virchow, Krause &`Company.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Rosemount, accepts its 2003 Comprehensive Annual Financial Report, prepared by the
audit firm of Virchow,- Krause & Company.
ADOPTED this 15 day of June, 2004.
William H. Droste, Mayor
ATTEST
Linda J. Jentink, City Clerk
Motion by: Seconded by:
Voted in Favor:
Voted Against:
Members Absent:
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
A
1
1
�GEi2lCs FILE
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 37, 2003
CITY OF ROSEMOUNT, MINNESOTA
VirchorwSe
&company
AUDITOR'S REPORT ON LEGAL COMPLIANCE
Honorable Mayor and Members of City Council
City of Rosemount, Minnesota
We have audited the general purpose financial statements of the City of Rosemount as of and for
the year ended December 31, 2003 and have issued our report thereon dated March 12, 2004.
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 five categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest,
public indebtedness, and claims and disbursements. Our study included all of the listed
categories.
The results of our tests 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 the City Council and is not intended
to be, and should not be, used by anyone other than those specified parties.
Minneapolis, Minnesota
March 12, 2004
7900 Xerxes Avenue South •Suite 2400 • Minneapolis, MN 55431 -1115 • Tel 952 • Fax 952.835.5845 • www.virchowkrause.com
Virchow, Krause & Company, LLP
Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International
VirchowKrause
&company
To the City Council
City of Rosemount
Rosemount, Minnesota
We have audited the financial statements of the City of Rosemount for the year ended
December 31, 2003 and have issued our report thereon dated March 12, 2004. Professional
standards require that we provide you with the following information related to our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards
As stated in our engagement letter dated October 30, 2003, our responsibility, as described by
professional standards, is to plan and perform our audit to obtain reasonable, but not absolute,
assurance that the financial statements are free of material misstatement and are fairly
presented in accordance with U.S. generally accepted accounting principles. Because an audit is
designed to provide reasonable, but not absolute assurance and because we did not perform a
detailed examination of all transactions there is a risk that material misstatements may exist and
not be detected by us.
As part of our audit, we considered the internal control of the City. Such considerations were
solely for the purpose of determining our audit procedures and not to provide any assurance
concerning such internal control.
Other Information in Documents Containing Audited Financial Statements
Our responsibility for information in the City's Comprehensive Annual Financial Report (CAFR)
does not extend beyond the financial information identified in our Independent Auditors' Report.
Under the terms of our engagement, we do not have an obligation to perform any procedures to
corroborate other information contained in the CAFR. Our procedures were limited to reading the
other information and making limited inquiries of management. Nothing came to our attention
that caused us to believe that such information, or its manner of presentation, is materially
inconsistent with the information, or manner of its presentation, appearing in the financial
statements.
Significant Accounting Policies
Management has the responsibility for selection and use of appropriate accounting policies. In
accordance with the terms of our engagement letter, we will advise management about the
appropriateness of accounting policies and their application. The significant accounting policies
used by the City are described in Note ,1 to the financial statements.
As described in Note 1 to the financial statements, the City of Rosemount changed accounting
policies related to financial reporting by adopting Statement of Governmental Accounting
Standards Numbers 34, 37 and 38 in 2003.
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
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. The most sensitive estimates
for 2003 relate to the capitalization assumptions and depreciation estimates used for
infrastructure assets.
Audit Adjustments
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's financial reporting process (that is, cause future financial
statements to be materially misstated). In our judgment, none of the adjustments we proposed,
whether recorded or unrecorded by the City, either individually or in the aggregate, indicate
matters that could have a significant effect on the City's financial reporting process.
Certain audit and bookkeeping adjustments we prepared were included in your financial
statements. Copies of these adjustments are available from management.
In addition, the attached schedule summarizes uncorrected misstatements of the financial
statements relating to accrued interest income. Management has determined that their effects
are immaterial, both individually and in the aggregate, to the financial statements taken as a
whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter that could be significant to the financial statements or the auditor's report. -We
are pleased to report that no such disagreements arose during the course of our audit.
Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation
involves application of an accounting principle to the governmental unit's financial statements or
a determination of the type of 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.
To the City Council
City of Rosemount
Issues Discussed Prior to Retention of Independent Auditors
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the City's auditors.
However, these discussions occurred in the normal course of our professional relationship and
our responses were not a condition to our retention.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing our audit.
We noted some areas which we believe warrant your additional consideration. These matters are
detailed in the attached document.
This information is intended solely for the use of the City Council and management and is not
intended to be, and should not be, used by anyone other than the specified parties.
We welcome the opportunity to discuss the information included in this letter and any other
matters. Thank you for allowing us to serve you.
Minneapolis, Minnesota
March 12, 2004
Matters for Your Consideration
Capitalization of Assets Policy
The City should consider establishing a higher capitalization threshold for capital asset additions.
The City currently is capitalizing items costing $500 or more. We believe the threshold could be
much higher for certain classes of assets. For example, buildings could easily have a threshold
of $25,000 to 50,000 and infrastructure an even higher threshold.
The following internet addresses are resources that may be of assistance to you if you decide to
review your capitalization policy:
http: / /www.Ila.state.Ia.us /gasb 34 /capas.pdf
http: / /www. auditor. state.mn.us /other /GASBTools /capital asset quide.pdf
New Auditing Standard
As part of our audit of your financial statements for the year ended December 31, 2003, we were required
to follow a significant new auditing standard, or rule. The new standard has been designed to increase
the likelihood of finding unidentified material fraud. For example, we now ask more questions about
internal controls, segregation of duties and management's internal assessment of fraud risk. However,
even a properly planned and completed audit may not detect a material fraud because deception and
concealment are a natural part of any fraud. Auditing standards clearly state that it is management's
responsibility to design and implement procedures and controls to prevent, deter, and detect fraud.
You should periodically assess where fraud may occur in your organization, and do what you can to
minimize that risk, within reasonable cost parameters. This is not the end of the changes to the auditing
process. Several new auditing standards are expected to be released in the near future, which will further
impact what we are required to do as auditors and how we communicate with you, the governing body.
City of Rosemount
SUMMARY OF PASSED ADJUSTING JOURNAL ENTRIES
December 31, 2003
Financial Statements Effect -
Increase (Decrease)
to Financial Statement Total
Excess of
Total
Total Rev. over
Assets
Liabilities Expend.
Governmental Activities
-
- -
Business -Type Activities
-
- -
Descretely Presented Component Units
5,529
- 5,529
Major Fund (1) General Fund
28,495
- 28,495
Major Fund (2) Debt Service
24,011
- 24,011
Major Fund (3) Capital Project
5,951
- 5,951
Major Fund (4) Enterprise Funds
52,014
- 52,014
Remaining Funds
4,253
- 4,253
CITY OF ROSEMOUNT, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2003
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, 2003
TABLE OF CONTENTS
Page
'
INTRODUCTORY SECTION
Letter of Transmittal
v
'
GFOA Certificate of Achievement
Organizational Chart
A
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 -
Govemmental 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
'
Net Assets — Component Unit — Port Authority
20
Statement of Activities — Component Unit — Port Authority
21
Notes to the Financial Statements
22-58
Required Supplementary Information:
Schedule of Revenues Compared to Budget — Budget and Actual — General Fund
59
Schedule of Expenditures and Other Uses (Budgetary Basis) — Budget and
Actual — General Fund
60
'
Notes to Required Supplementary Information
61
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds
62-63
Combining Statement of Revenues, Expenditures and Changes in
'
Fund Balances — Nonmajor Governmental Funds
64-65
Schedules of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual
Building CIP Special Revenue Fund
66
'
Street CIP Special Revenue Fund
67
Equipment CIP Special Revenue Fund
68
Balance Sheet — Component Unit — Port Authority
69
Statement of Revenues, Expenditures, and Changes in Fund Balances —
'
Governmental Funds Component Unit — Port Authority
70
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities —
'
Port Authority
71
Schedule of Capital Assets Used in the Operation of Governmental Funds —
Schedule — By Source
72
CITY OF ROSEMOUNT
'
COMPREHENSIVE ANNUAL FINANCIAL REPORT
December 31, 2003
,
TABLE OF CONTENTS
Paae
STATISTICAL SECTION (Unaudited)
General Fund Expenditures and Other Financing Uses by Function
73
'
General Fund Revenues and Other Financing Sources by Source
74
Property Tax Levies and Collections
75
Assessed Value (or Tax Capacity) and Estimated Market Value of
'
All Taxable Property
76
Property Tax Rates -All Direct and Overlapping Governmental Units
77-78
Schedule of the Ten Largest Taxpayers
79
Special Assessment Receivables and Collections
80
'
Computation of Legal Debt Margin
81
Ratio of Net Bonded Debt to Assessed Value (or Tax Capacity) and
Market Value and Net Bonded Debt Per Capita
82-83
'
Ratio of Annual Debt Service Expenditures For General Bonded Debt
to Total General Fund Expenditures
84
Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds
85
Revenue Bond Coverage
86
'
Demographic Statistics
87
Property Value and Construction
88
Miscellaneous Statistics
89
CITY OF ROSEMOUNT
CITY HALL
2875 - 145th Street West
Rosemount, MN
55068 -4997
Phone: 651 - 423 -4411
Hearing Impaired: 651- 423 -6219
Fax: 651 - 423 -5203
II
To the Honorable Mayor, Council Members, City Manager, and the Citizens of the City of
Rosemount:
Minnesota statutes require that all cities issue an annual financial report on its financial position
and activity prepared in accordance with generally accepted accounting principals (GAAP), and
audited in accordance with generally accepted auditing standards by a firm of licensed certified
public accountants or the Office of the State Auditor. Pursuant to that requirement, we hereby
issue the comprehensive annual financial report of the City of Rosemount (the City) for the
fiscal year ended December 31, 2003.
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, 2003, 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,
2003, 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.
►v
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:
2003 Estimate
2000 Census
1990 Census
1980 Census
1970 Census
Rosemount has an extensive system of State and County highways and 118 miles of city streets
that continue to contribute to the community's growth. This extensive highway network and large
tracts of attractive, developable land have made the City an ideal location for residential
development and increasing commercial /industrial development. Over 500 acres of industrial
and commercial zoned land have been reserved for development in Rosemount. Rail, air, barge
and freeway access provides Rosemount's economic community with an expedient transportation
system. Four major highways link Rosemount to Minneapolis, St. Paul and the rest of the
metropolitan area.
The City provides a full range of services, including police and fire protection; the construction
and maintenance of highways, streets, and other infrastructure; water, sewer, and storm water
services; and recreational activities and cultural events. Certain economic development services
are provided through a legally separate Rosemount Port Authority that functions independent of
the City. The Port Authority's financial data has been presented in this financial report as a
discretely presented component unit.
The annual budget serves as the foundation for the City's financial planning and control. All
departments of the City submit requests for appropriation to the City Administrator on or before
July 15 of each year. The City Administrator uses these requests as the starting point for
developing a proposed budget. The City Administrator then presents this proposed budget to the
council for review by September 15. The council is required to hold public hearings on the
proposed budget and to adopt a final budget by no later than December 20, the close of the
City's fiscal year.
vi
Population
Percent
Population
Increase
Increase
18,700
4,081
28%
14,619
5,997
70%
8,622
3,539
70%
5,083
1,049
26%
4,034
-
-
Rosemount has an extensive system of State and County highways and 118 miles of city streets
that continue to contribute to the community's growth. This extensive highway network and large
tracts of attractive, developable land have made the City an ideal location for residential
development and increasing commercial /industrial development. Over 500 acres of industrial
and commercial zoned land have been reserved for development in Rosemount. Rail, air, barge
and freeway access provides Rosemount's economic community with an expedient transportation
system. Four major highways link Rosemount to Minneapolis, St. Paul and the rest of the
metropolitan area.
The City provides a full range of services, including police and fire protection; the construction
and maintenance of highways, streets, and other infrastructure; water, sewer, and storm water
services; and recreational activities and cultural events. Certain economic development services
are provided through a legally separate Rosemount Port Authority that functions independent of
the City. The Port Authority's financial data has been presented in this financial report as a
discretely presented component unit.
The annual budget serves as the foundation for the City's financial planning and control. All
departments of the City submit requests for appropriation to the City Administrator on or before
July 15 of each year. The City Administrator uses these requests as the starting point for
developing a proposed budget. The City Administrator then presents this proposed budget to the
council for review by September 15. The council is required to hold public hearings on the
proposed budget and to adopt a final budget by no later than December 20, the close of the
City's fiscal year.
vi
n
' 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 pf 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 59 -60
as part of the Required Supplemental Information.
Factors Affecting Financial Condition
' The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City
operates.
Local economy. Rosemount is unique in that the eastern one -third of the City is largely heavy
industry, the middle one -third is largely agricultural and the western one -third is heavily
residential with a good mix of light industrial and commercial. Residential developments with
hundreds of homes are currently under development and this pattern of growth will continue for
years to come. The fifteen largest taxpayers comprise a mix of industry, commerce and utilities
that represent approximately 22% 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. 2003 labor force numbers were 2,923,083;
1,833,763; and 228,748 respectively with unemployment rates of 5.0 %; 4.8% and 4.2% to match.
These figures compare quite favorably with national figures.
Community leadership has preserved 302 beautiful acres of land for 23 parks. Residents can
' enjoy a round of golf on a 27 -hole public course or on a 9 -hole semi - private course. Bordered by
the scenic Mississippi River, Rosemount also contains 270 acres of the Spring Lake Regional
Park Preserve. Rosemount's Community Center, a part of the Army National Guard's regional
headquarters, provides a variety of indoor recreation opportunities and meeting spaces, including
' an ice arena, gymnasium, auditorium and banquet facility.
Given the underlying strength of the economy in the seven county metropolitan area, the
diversification of tax and employment bases and Rosemount's desirable location, the future
outlook is very optimistic.
' Long -term financial planning. Growth and development of the City is guided by a
Comprehensive Land Use Plan, which was commissioned soon after the consolidation in 1971 of
the former Village and Town of Rosemount. The Plan outlines long -range zoning and
development policies of the City, and is designed to encourage and promote orderly development
' and growth which will perpetuate a sound tax base. This Plan was updated in 1999 and will
guide development until the year 2020.
' Other factors. The City of Rosemount has experienced another surge in residential construction
for the 2003 year. The number of new units brought into the community was 25% higher than
2002, with 60% of new construction being single family detached housing. The 440 units created
' $87,119,479 in additional building valuation, a 64% increase over the previous year.
' vii
Significant residential construction continues to occur in the Evermoor project by Contractors '
Property Development Corporation (CPDC). This mixed use residential project contributes single
family homes, neo- traditional single family, empty nester small lot detached townhomes, row and
townhomes, to the current City housing mix. Additional multi - family and single family ,
development continues in Centex's Bloomfield, Heritage Development's Biscayne Pointe and
Carrousel Plaza Townhomes, Progress Land Company's Rosewood Estates, and Wensmann
Homes' Wachter Lake Senior Condos. Residential construction in 2004 should maintain the '
currently high levels with the approval of the 330 unit Centex Minea project and additional
phases in the above residential projects.
Four new commercial projects occurred in Rosemount during 2003. These projects added ,
$1,876,700 in building valuation to the community. Coupled with the commercial and industrial
remodeling and alterations there was a total increase in commercial /industrial value of
$2,283,180 for 2003. '
This year began with four new council members and renewed energy in working toward
redevelopment and revitalization of the City's downtown. A consultant was hired to work with a '
downtown committee, a 13 person working group, to develop a downtown plan that can be
implemented. The group will continue to work on the plan in the early months of 2004 with a
final draft anticipated in late spring.
Rosemount has been working closely with Dakota County to determine the appropriate site for a
County branch library. The Rosemount branch is slated for construction in 2008 on one of three
sites selected. Two of the sites are located within the City's downtown area, with the third
located north of the downtown along Trunk Highway 3.
The City has acquired land immediately to the west of the Meadows of Bloomfield site for a
future water storage facility, water treatment plant and fire station. City projects included the
extension of Connemara Trail from Trunk Highway 3 east to the Biscayne Pointe 4 th Addition, the
reconstruction of Biscayne Avenue from Connemara Trail south to the existing Biscayne Avenue,
the resurfacing and new signal at the Chippendale Avenue and CSAH 42 intersection, the
extension of sanitary sewer along 16 Street east of Trunk Highway 3, and the completion of
Trunk Highway 3 enhancements between CSAH 42 and 145 Street. Overall, in the year 2003,
the City added 3.65 miles of public streets, over 4 miles of sanitary sewer, 5.98 miles of storm
sewers, and 9.05 miles of water mains.
The Police Department has continued to provide services and programs that are consistent with
the community- oriented policing philosophy. In 2003 these initiatives included:
• Patrol officers are assigned to specific geographic beats to patrol. This is done in an effort to
get the officers more familiar with the residents and issues within the area that they patrol on
a daily basis. Officers should be more effective in identifying problem locations, problem
persons and issues within the beat. After becoming more familiar with area issues, it is
expected that officers will develop plans, often times with resident input, to address crime or
livability issues within their neighborhood.
• Drug Abuse Resistance and Education (D.A.R.E.) — An officer taught students at three
Rosemount schools. Over 220 fifth grade students graduated from the program in 2003.
• National Night Out — Police and fire officials, along with City Council members, visited
eighteen neighborhoods, including several town home associations and a new condominium
complex, on the first Tuesday of August as part of this nationwide event.
• Citizen Police Academy — The department sponsored its second CPA in the fall of 2003.
Eighteen citizens attended classes for seven weeks to learn more about the functions and
duties of the police department. The community enthusiastically received this program and it
is expected to become an annual offering of the department.
viii
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 loss related to tort liability, theft of,
damage to, or destruction of assets; errors or omissions; injuries to employees; or natural
disasters. The City has entered into a joint powers agreement with the League of Minnesota
Cities Insurance Trust (LMCIT). The LMCIT is a public entity risk pool currently operating as a
' common risk management and insurance program for Minnesota cities. The agreement for
formation of the LMCIT provides that the pool will be self - sustaining through member premiums
and will reinsure through commercial companies for claims in excess of reserved amounts for
' each insured event. The pooling agreement allows for the pool to make additional assessments
to make the pool self- sustaining. The City has determined that it is not possible to estimate the
amount of such additional assessments in the unlikely event that they are necessary.
' The City's workers compensation and employer's liability insurance policies provide statutory
coverage. The City elects to participate in the regular premium option offered by LMCIT with a
$2,500 medical deductible per occurrence for workers compensation and a $500 deductible per
' occurrence for liability insurance that offers substantial premium savings when the City has a
relatively small amount of claims. An insurance fund has been established to account for the
savings when the City has a low claim year in either of the insurance policies to offset the
' negative effects that the City may have if the City has a high claim year. The City's plan is to
continue to build reserves in this fund in the hope of raising the deductibles and working closer
towards self- insurance (although we realize that we will never be totally self- insured).
The City has also contracted with a risk management - consulting firm to assist in the planning
and administering of our insurance needs. The City has been working with a firm since 1994 and
the positive impact on the City has been substantial. Advice given to the City in working towards
' self- insurance has proven very beneficial. Also, advice given to the City regarding areas that are
underinsured and areas that are over - insured have resulted in many changes, all of them
benefiting the City, and ultimately, its citizens.
' Awards and Acknowledgements
' The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Rosemount for
its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2002.
This was the seventh 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.
I ix
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. May
Finance Director
/ James D. Verbrugge
City Administrator
1
X
[I
1
Certificate of
Achievement
for Excellence
1
in Financial
Reporting
Presented to
City of Rosemount,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
' standards in government accounting
and financial reporting.
omit SI TEST
"AD l�
„�" 11 President
6 CDDPDA"TIDN � n
Executive Director
A
City of Rosemount
Organizational Chart
January 2003
M M M M M M M M M M M M
CITY OF ROSEMOUNT
CITY OFFICIALS
Year Ended December 31, 2003
ELECTED OFFICIALS:
Mayor Bill Droste
Councilmember Mary Riley
Councilmember Kevin Strayton
Councilmember Kim Shoe Corrigan
Councilmember Mark DeBettignies
APPOINTED OFFICIALS:
City Administrator
Finance Director
Human Resources/Communications Coordinator
City Engineer
Community Development Director
Police Chief
Fire Chief
Parks and Recreation Director
CONSULTANTS AND ADVISORS:
Legal
Term of Office
Four Years
Four Years
Four Years
Four Years
Four Years
Term Expires
Auditing
Fiscal
Engineering
James D. Verbrugge
Jeffrey A. May
Dawn Weitzel
Andy Brotzler
Kim Lindquist
Gary D. Kalstabakken
Scott W. Aker
Dan Schultz
December 31, 2006
December 31, 2004
December 31, 2004
December 31, 2006
December 31, 2006
Kennedy & Graven
Fluegel & Moynihan, P.A.
Briggs & Morgan
Virchow, Krause & Company, LLP
Springsted, Inc.
Ehlers & Associates, Inc.
Bonestroo, Rosene, Anderlik & Associates
Short- Elliot - Hendrikson, Inc.
WSB & Associates
xiii
THIS PAGE INTENTIONALLY LEFT BLANK
VirchowKrause
$[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, the discretely presented component unit, each major fund, and the aggregate remaining fund information
of the City of Rosemount, Minnesota, as of and for the year ended December 31, 2003, 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.
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 opinion.
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, the discretely presented component
unit, each major fund, and the aggregate remaining fund information of the City of Rosemount, Minnesota, as of
December 31, 2003, and the respective changes in financial position and cash flows, where applicable, thereof for
the year then ended in conformity with accounting principles generally accepted in the United States of America.
' As described in Note 1, the City has implemented a new financial reporting model, as required by the provisions of
GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and
' Local Governments, as of January 1, 2003.
The management's discussion and analysis on pages 2 through 10 and the budgetary comparison schedules on
pages 59 through 61 are not required parts of the basic financial statements, but is 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
t 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
March 12, 2004
' Virchow, Krause & Company, LLP Page 1
Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International
THIS PAGE INTENTIONALLY LEFT BLANK
1
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,
2003. 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
$121,165,049 (net assets). Of this amount, $31,462,540 (unreserved net assets) may be used to meet
the government's ongoing obligations to citizens and creditors.
• The City's total net assets increased by $13,703,637. Approximately one -half of this increase is
attributable to capital assets contributed to the City by developers.
' • The City's component unit (the Port Authority) had a $140,086 increase in net assets during 2003, but
had a $3,502,825 net asset deficit at December 31, 2003.
• At year end, unreserved fund balance for the general fund, net of $476,573 designated for compensated
' absences, was $4,061,256, 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 (including debt recorded in the Port Authority) decreased by $11,655,000 (28
percent) during the current year. The reason for this significant decrease was the early retirement of a
number of bond issues using available cash from special assessment collections.
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, pubic works, recreation, and
community development. The business -type activities of the City include water, sewer, storm water and an ice
arena.
The government - wide financial statements include not only the City itself, but also a legally separate port
' authority, which functions as the economic development arm of the City, and therefore has been included as a
component unit of the primary government.
Page 2
The government -wide financial statements can be found on pages 11 -12 of this report.
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 maybe 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 and capital project fund, all of which are
considered major funds. Data from the ten other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement has
been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 13 -15 of this report
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial statements.
The City uses enterprise funds to account for its public utilities and ice arena operations. The internal service
fund is an accounting device to accumulate and allocate costs internally among the City's various functions. The
City uses its internal service fund to account for insurance premiums and deductibles and to accumulate
resources for the risk of uninsured loss. Because this service predominantly benefits governmental rather than
business -type functions, it has been included within governmental activities in the government -wide financial
statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in
more detail. The proprietary fund financial statements provide separate information for each of the public
utilities, which are considered to be major funds of the City, and information on the ice arena fund, which is
considered a non -major fund. The internal service fund is also presented separately in the proprietary fund
financial statements.
The basic proprietary fund financial statements can be found on pages 16 -19 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government -wide financial statement because the
resources of those funds are not available to support the City's own programs.
Page 3
A
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to the
financial statements can be found on pages 22 -58 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor governmental
funds are presented immediately following the basic financial statements. Combining and individual fund
statements and schedules can be found on pages 62 -72 of this report.
I
ri
HI
Governmental Business -type
Activities Activities Total
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 $121,165,049 at the close of the most recent fiscal year.
The largest portion of the City's net assets (68 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.
With the first year implementation of Governmental Accounting Standards Board Statement 34, the City is not
presenting comparable columns in the various comparisons and analyses for the previous year.
City of Rosemount's Net Assets
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
$ 23,820,346
35,808,491
$ 17,600,594
69,919,690
$ 41,420,940
105,728,181
59,628, 837
17,031,825
1,483,760
18,515,585
19,273,447
21,839,805
$ 41,113,252
87,520,284
7,123,406
345,081
7,468,487
62,897,357
7,531,705
9,622,735
$ 80,051,797
147,149,121
24,155,231
1,828,841
25,984,072
82,170,804
7,531,705
31,462, 540
$ 121,165,049
An additional portion of the City's net assets (6 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($31,462,540) may be
used to meet the government's ongoing obligations to citizens and creditors.
0
11
I Page 4
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. '
Governmental activities. Governmental activities increased the City's net assets by $4,393,364, thereby
accounting for 32 percent of the total growth in net assets of the City. Key elements of this increase are as '
follows:
City's Changes in Net Assets
Governmental Business -type
Activities Activities Total
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Public gifts and /or grants
Investment income
Other & Loss on disposal of assets
Total revenues
Expenses:
General government
Public safety
Public works
Recreation
Community development
Interest on long -term debt
Water
Sewer
Storm water
Arena
Total expenses
Increase in net assets
before transfers
Transfers
Increase in net assets
Net assets — Beginning of Year
Net assets — End of Year
$ 2,384,261 $
1,650,656
9,167,679
6,098,664
131,525
77,884
391,103
(227,028)
19,676,744
6,282,481
2,500
1,405,488
$ 8,666,742
1,653,156
10,573,167
1,772,833
2,350,428
3,814,357
1,099,990
2,648
971,498
299,851
7,990,320
36,924,387 70,537,025
41,113,252 $ 80,051,797
6,098,664
133,525
77,884
690,954
(227,028)
27,667,064
1,772,833
2,350,428
3,814,357
1,099,990
2,648
971,498
1,253,100
1,482,577
854,762
359,630
13,961,823
13,703,637
13,703,637
107,461,412
$ 121,165,049
F
L
I
�
7
u
Page 5 1
1,253,100
1,482,577
854,762
359,630
10,011,754
3,950,069
9,664,990
4,038,647
(5,476,125
5,476,125
4,188,865
9,514,772
36,924,387 70,537,025
41,113,252 $ 80,051,797
6,098,664
133,525
77,884
690,954
(227,028)
27,667,064
1,772,833
2,350,428
3,814,357
1,099,990
2,648
971,498
1,253,100
1,482,577
854,762
359,630
13,961,823
13,703,637
13,703,637
107,461,412
$ 121,165,049
F
L
I
�
7
u
Page 5 1
Expenses and Program Revenues - Governmental Activities
O t_xpenses
O Revenue
Millions
Revenues by Source - Governmental Activities
Page 6
General Government Public Safety Public Works Recreation Community Interest on long -term
Development debt
Business -type activities. Business -type activities increased the City's net assets by $9,514,772,
'
accounting for 53 percent of the total growth in the government's net assets.
Expenses and Program Revenues - Business -type Activities
'
0 Expenses
3./ ORevenue
2.5
'
2
'
Millions 1.5
ass
0
Water Sewer Storm water Ice Arena
1
Revenues by Source - Business -type Activities
Surcharges and penalties
'
Investment income 3% Miscellaneous
s % 2%,,
0%
'
Special assessments Char ges for services
9% 41%
s
Connection fees
37% Water meters
2%
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related
'
legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term
'
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
Page 7
1
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances
of $17,481,193, a decrease of $9,217,050 in comparison with the prior year. Approximately 49 percent of this
total amount ($8,613,980) 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 ($1,276,051), and 2) pay debt service ($7,563,183).
' The general fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved fund
balance of the general fund was $4,537,829, while total fund balance reached $4,713,147. The following table
' shows year -end general fund balances as compared to the adopted expenditure budget of the following year:
Fund Balance
Year Budget Amount Percent of Next Budget
1995 $ 4,294,749 $ 1,497,828 33%
1996 4,531,935 1,583,375 35%
1997 4,578,300 1,928,980 41%
' 1998 4,715,600 2,438,384 50%
1999 4,855,900 3,054,533 58%
2000 5,258,318 3,716,529 66%
2001 5,663,200 3,765,603 58%
2002 6,501,600 5,126,656 70%
2003 7,338,100 4,061,256 55%
2004 7,409,400
' * 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 decreased by $521,475. The
' decrease 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, 2003, 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 $8,586,873 due to the early retirement of special assessment debt
that was paid with cash on hand from prepayments of special assessments. The capital projects fund balance
decreased by $567,979 due to transfers out of capital projects, timing of projects, and developer contributions.
' Proprietary funds. The City's proprietary funds provide the same type of information found in the government-
wide statements, but in more detail.
' Unrestricted net assets of the public utilities funds at the end of the year amounted to $9,569,729 and those for
the arena fund amounted to $53,006. The growth in total net assets for the public utilities funds was $9,540,013
and the decrease in total net assets for the arena fund was $25,241.
General Fund Budgetary Highlights
There were no significant variances between final budgeted revenues and actual amounts. Actual expenditures
' were less than budgeted for all activities. The key factor was the uncertainty that the City had with regards to
the aid provided by the state. Both overtime and part -time seasonal assistance were below budgeted amounts.
Reductions in supplies required for certain street and park maintenance projects were also reduced because of
' the uncertainty of available funding.
' Page 8
r_
Capital Asset and Debt Administration
i
Capital assets. The City's investment in capital assets for its governmental and business -type activities as of
December 31, 2003, amounts to $105,728,181 (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 over $23,191,000 for the year,
developers paid for over
$7,344,000 of them.
'
• Land was purchased for the future construction of a water tower.
City of Rosemount's Capital Assets
'
(net of depreciation)
Governmental Business -type
Activities Activities
Total
,
Land
$ 2,572,484 $ 962,205
$ 3,534,689
Land improvements
498,302 -
498,302
'
Buildings
8,021,820 5,052,711
13,074,531
Machinery and equipment
3,197,804 643,156
3,840,960
Mains and lines
- 55,422,545
55,422,545
'
Infrastructure
15,332,121
15,332,121
Construction in progress
6,185,960 7,839,063
14,025,023
Total capital assets
$ 35,808,491 $ 69,919,690
$ 105,728,181
'
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
$30,230,000 (including debt recorded in the Port Authority). Of this amount, $13,405,000 was for general
obligation improvement debt which has financed special assessment construction as part the continuing
development within the city. An additional $7,710,000 was general obligation debt issued by the Port Authority
which financed the City's economic development and redevelopment programs. Another $7,075,000 was
general obligation revenue bond debt issued to add to and improve the water and storm water utility systems
within the City. The remaining $2,040,000 was general obligation and general obligation refunding debt.
The City's total debt decreased by $11,655,000 (28 %) during the current fiscal year. The significant decrease
was due to the early retirement of $12,585,000 of general obligation, improvement, and general obligation
revenue bond debt along with the scheduled retirement of bonded debt. The retirements were offset by the
issuance of $3,115,000 of general obligation improvement bonds and general obligation revenue bonds to
finance improvements to the water utility system and various other improvements within the City.
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 $27,326,924. Of
the City's $30,230,000 in outstanding debt at the current fiscal year end, $1,712,785 is subject to the
restrictions placed by state statute.
The City's bond rating remains at Al in 2003. The rating was upgraded from A2 by Moody's Investor Service in
2002. This excellent rating has had a positive effect on the sale of the City's bonds.
Additional information on the City's long -term debt can be found in Note IV.E. on pages 44 -46 of this report.
Page 9
' Port Authority Highlights
On the government -wide basis, the Port Authority's net assets increased by $140,086 and has a total net
' asset deficit of $3,502,825 at year end.
The Port Authority is composed of a general fund, a special revenue fund, and a debt service fund. The
general fund experienced a $362,853 increase in fund balance, while the special revenue and debt service
funds had $821,982 and $3,125,948 decreases in fund balance, respectively. This resulted in an overall
fund balance decrease of $3,585,077. The decrease in the debt service fund is due to the scheduled and
early repayments of debt.
' Economic Factors
' • Dakota County's unemployment rate ended the year at 4.2 percent, which compares favorably with the
state unemployment rate of 5.0 percent, and the national unemployment rate of 5.4 percent.
• City building permits continued their upward movement in both quantity and value in 2003. A total of
' 1,128 permits with a total valuation of $96,872,709 were issued in 2003.
' 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
THIS PAGE INTENTIONALLY LEFT BLANK
n
n
D
i
r
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS
December 31, 2003
Primary Government
Business -
Governmental Type Component
Activities Activities Total Unit
ASSETS
Cash and investments
Receivables (net of allowance for uncollectibles)
Taxes
Delinquent taxes
Accounts
Loans
Special assessments
Due from other governmental units
Internal balances
Prepaid items
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
$ 18,466,865 $ 16,077,477 $ 34,544,342 $ 3,242,389
531,873
-
531,873
-
106,839
-
106,839
-
57,342
675,234
732,576
-
-
-
-
618,431
4,800,479
489,500
5,289,979
175,782
10,433
45,631
56,064
-
(249,111)
249,111
-
-
95,626
63,641
159,267
450
2,572,484
962,205
3,534,689
440,041
6,185,960
7,839,063
14,025,023
-
936,547
-
936,547
-
9,910,906
6,076,878
15,987,784
-
6,719,836
1,595,518
8,315,354
18,620
20,617,774
83,776,763
104,394,537
-
(11,135,016)
(30,330,737)
(41,465,753)
(6,252)
59,628,837
87,520,284
147,149,121
4,489,461
1,095,917
196,593
1,292,510
140,795
95,111
-
95,111
-
292,731
148,488
441,219
141,491
2,626,063
600,000
3,226,063
560,000
14,405,763
6,523,406
20,929,169
7,150,000
18,515,585
7,468,487
25,984,072
7,992,286
NET ASSETS
Invested in capital assets, net of related debt
19,273,447 62,897,357
82,170,804
-
Restricted
- 7,531,705
7,531,705
-
Unrestricted
21,839,805 9,622,735
31,462,540
(3,502,825)
'
Total Net Assets $
41,113,252 $ 80,051,797
$ 121,165,049
$ 3,502,825
See accompanying
notes to financial statements.
Page 11
CITY OF ROSEMOUNT
STATEMENT OF ACTIVITIES
December 31, 2003
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business -Type Component
Functions /Programs Expenses Services Contributions Contributions Activities Activities Total Unit
Primary government:
Governmental activities:
General government
Public safety
Public works
Culture, education and recreation
Conservation and economic development
Interest and fiscal charges
Total Governmental Activities
Business type activities
Water
Sewer
Storm Water
Arena
Total Business -Type Activities
Total primary government
Component Unit:
Port authority
$ 1,772,833
$ 1,854,322 $ 12,889 $
$ 94,378
$
$ 94,378
$
2,350,428
130,581 152,036
(2,067,811)
(2,067, 811)
3,814,357
43,377 1,315,865 9,167,679
6,712,564
6,712,564
1,099,990
355,981 - -
(744,009)
-
(744,009)
2,648
- 169,866 -
167,218
167,218
971,498
- - -
(971,498)
(971,498)
10,011,754
2,384,261 1,650,656 9,167,679
3,190,842
3,190,842
1,268,363
2,626,145 1,570 111,117
-
1,470,469
1,470,469
1,482,577
1,837,761 930 525,459
881,573
881,573
839,499
1,510,114 729,012
1,399,627
1,399,627
359,630
308,461 - 39,900
(11,269)
(11,269)
3,950,069
6,282,481 2,500 1,405,488
3,740,400
3,740,400
$ 13,961,823
$ 8,666,742 $ 1,653,156 $ 10,573,167
3,190,842
3,740,400
6,931,242
$ 1,344,259
$ 22,489 $ - $ 816
(1,320,954)
General revenues:
Taxes
Property taxes, levied for general purposes
5,832,653
5,832,653
249,721
Property taxes, levied for debt service
266,011
266,011
1,038,531
Other taxes
133,525
-
133,525
-
Intergovernmental revenues not restricted to
specific programs
-
-
14,402
Public gifts and /or grants
77,884
77,884
-
Investment income
391,103
299,851
690,954
90,386
Gain (loss) on the sale of assets
(232,155)
(1,604)
(233,759)
-
Miscellaneous
5,127
-
5,127
68,000
Transfers
(5,476,125)
5,476,125
0
Total general revenues, special items, and transfers
998,024
5,774,372
6,772,396
1,461,040
Change in net assets
4,188,865
9,514,772
13,703,637
140,086
Net assets - beginning
36,924,387
70,537,025
107,461,412
(3,642,911)
NetAssets - Ending
$ 41,113,252
$ 80,051,797
$ 121,165,049
See accompanying notes to financial statements.
N&e12_
0
1
CITY OF ROSEMOUNT
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2003
ASSETS
' Cash and investments
Receivables:
Taxes
Accounts
Special assessments
Delinquent special assessments
Due from other governmental units
Prepaid items
Total assets
[i
L",
r��
Cl
L
Ell,
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll and payroll taxes
Deposits payable
Contracts payable
Deferred revenue
Advances from other funds
Total liabilities
Fund balances
Reserved for:
Prepaid items
Debt service
Encumbrances
Unreserved and designated, reported in:
General fund
Capital projects
Special projects
Unreserved and undesignated (Deficit), reported in:
Other Total
Governmental Governmental
General Debt Service Capital Projec Funds Funds
$ 4,621,037 $ 7,000,521 $ 3,327,796 $ 2,964,793 $ 17,914,147
531,873 -
- - 531,873
37,666 -
- 18,018 55,684
60,066 4,677,058
- 63,355 4,800,479
883 100,087
- 5,869 106,839
10,433 -
- - 10,433
27,979 -
- - 27,979
$ 5,289,937 $ 11,777,666 $ 3,327,796 $ 3,052,035 $ 23,447,434
$ 226,385 $ - $ 408,836 $ 36,520 $ 671,741
95,111 - - - 95,111
31,225 - - 31,225
- - 411,432 - 411,432
224,069 4,214,483 69,069 4,507,621
- - - 249,111 249,111
576,790 4,214,483 820,268 354,700 5,966,241
27,979 27,979
- 7,563,183 - - 7,563,183
147,339 - - 1,128,712 1,276,051
4,525,008 - - - 4,525,008
- - 2,507,528 - 2,507,528
- 1,666,889 1,666,889
General fund 12,821 - - - 12,821
Special revenue funds - - - (98,266) (98,266)
Total fund balances 4,713,147 7,563,183 2,507,528 2,697,335 17,481,193
Total liabilities and fund balances $ 5,289,937 $ 11,777,666 $ 3,327,796 $ 3,052,035
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. 35,808,491
Some receivables that are not currently available are reported as deferred revenue in the fund financial
statements but are recognized as revenue when earned in the government -wide statements. 4,507,621
Internal service funds are reported in the statement of net assets as governmental funds 609,279
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. (17,293,332)
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 41,113,252
See accompanying notes to financial statements.
Page 13
CITY OF ROSEMOUNT
1
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS ,
For the Year Ended December 31, 2003
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
Conservation and development
Other
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
General Debt Service Capital Projec
Other Total
Governmental Governmental
Funds Funds
$ 5,061,078
$ 266,011
$ -
$ 905,100
$ 6,232,189
214,236
84,580
1,349,460
2,380
1,650,656
1,084,183
-
-
294,737
1,378,920
915,589
-
-
-
915,589
89,752
-
-
-
89,752
23,738
1,518,341
-
15,307
1,557,386
192,696
203,781
7,387,785
33,701
7,817,963
7,581,272
2,072,713
8,737,245
1,251,225
19,642,455
37,513
Transfers in
3,500
1,597,819
-
-
7,500
1,605,319
2,085,001
-
-
6,443
2,091,444
1,987,960
-
-
67,429
2,055,389
907,100
-
-
-
907,100
-
-
-
297
297
-
21,050
-
-
21,050
-
-
5,780,912
1,575,668
7,356,580
-
10,085,000
-
180,948
10,265,948
-
1,074,005
-
63,018
1,137,023
6,577,880
11,180,055
5,780,912
1,901,303
25,440,150
Excess (deficiency) of revenues
,
over (under) expenditures
1,003,392
(9,107,342)
2,956,333
(650,078)
(5,797,695)
OTHER FINANCING SOURCES (USES)
Issuance of long -term debt
-
50,499
1,894,501
-
1,945,000
'
Capital leases
-
-
-
74,257
74,257
Sale of capital assets
2,435
-
-
35,078
37,513
Transfers in
3,500
469,970
921,524
1,056,987
2,451,981
Transfers out
(1,422,836)
-
(6,340,337)
(164,933)
(7,928,106)
'
Total Other Financing Sources (Uses)
(1,416,901)
520,469
(3,524,312)
1,001,389
(3,419,355)
Net Change in Fund Balance
(413,509)
(8,586,873)
(567,979)
351,311
(9,217,050)
'
FUND BALANCES - Beginning
5,126,656
16,150,056
3,075,508
2,346,024
26,698,244
t
FUND BALANCES - ENDING
$ 4,713,147
$ 7,563,183
$ 2,507,529
$ 2,697,335
$ 17,481,194
See accompanying notes to financial statements.
Page 14
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 4,188,865
See accompanying notes to financial statements.
Page 15
CITY OF ROSEMOUNT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
'
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
'
For the Year Ended December 31, 2003
Net change in fund balances - total governmental funds $
(9,217,050)
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
P p Y
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
7,356,580
Less: Some items reported as capital outlay but not capitalized
(1,143,642)
Depreciation is reported in the government -wide statements
(1,146,269)
Capital asset disposals
(269,670)
Internal service funds are reported in the statement of activities
(11,390)
Receivables not currently available are reported as deferred revenue in the fund financial
p
'
statements but are recognized as revenue when earned in the government -wide
financial statements.
266,445
Debt and lease proceeds provide current financial resources to governmental funds,
'
but issuing these obligations increases long -term liabilities in the statement of net
assets. Repayment of 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
by which payments ($10,085,000 G.O. debt and $167,943 capital leases) exceeded
'
proceeds ($1,945,000 G.O. debt and $74,257 capital leases).
8,233,686
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.
Compensated absences
(58,355)
Accrued interest on debt
178,530
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 4,188,865
See accompanying notes to financial statements.
Page 15
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS- PROPRIETARY FUNDS
December 31, 2003
See accompanying notes to financial statements.
Page 16 ,
Business -Type
Activities - Enterprise Funds
Governmental
Storm
Nonmajor
Activities -
'
Water
Sewer
Water
Arena
Total
Insurance Fund
ASSETS
Current assets:
'
Cash and investments
$ 5,958,473
$ 5,027,707
$ 5,064,846
$ 26,451
$ 16,077,477
$ 552,718
Customer accounts receivable
254,684
277,595
142,955
-
675,234
1,658
Special assessments receivable
50,641
328,875
109,984
-
489,500
-
Due from other governments
-
-
-
45,631
45,631
'
Prepaid items
7,050
50,366
2,848
3;377
63,641
67,647
Total current assets
6,270,848
5,684,543
5,320,633
75,459
17,351,483
622,023
Non- current assets:
'
Advance to other funds
352,908
-
-
352,908
-
Property and equipment:
Land
498,042
-
464,163
-
962,205
-
Buildings
2,574,394
240,164
862,420
2,399,900
6,076,878
-
'
Mains and lines
6,935,343
4,507,285
7,073,840
-
18,516,468
-
Other improvements
15,726,518
36,983,749
12,550,028
-
65,260,295
-
Machinery and equipment
Construction in progress
933,615
3,111,504
424,325
1,178,564
142,980
3,548,995
94,598
-
1,595,518
7,839,063
-
-
,
Less accumulated depreciation
(6,977,293)
_ (19,656,228}
(3,217,834)
(479,382)
(30,330,737)
-
Net property and equipment
22,802,123
23,677,859
21,424,592
2,015,116
69,919,690
-
Total non - current assets
22,802,123
24,030,767
21,424,592
2,015,116
70,272,598
-
'
Total Assets
29,072,971
29,715,310
26,745,225
2,090,575
87,624,081
622,023
LIABILITIES
'
Current liabilities:
Accounts payable
73,804
16,362
14,960
5,766
110,892
12,745
Contracts payable
85,701
-
-
-
85,701
-
Accrued liabilities
8,574
6,969
2,775
4,083
22,401
-
,
Accrued interest
45,046
-
81,041
-
126,087
-
Current portion of long term debt
260,000
-
340,000
-
600,000
-
Total current liabilities
473,125
23,331
438,776
9,849
945,081
12,745
'
Noncurrent liabilities:
Accrued compensated absences
37,680
37,680
13,109
12,604
101,073
-
General obligation debt
Advances from other funds
2,375,281
103,797
-
-
4,047,052
-
-
-
6,422,333
103,797
-
Total noncurrent liabilities
2,516,758
37,680
4,060,161
12,604
6,627,203
-
Total Liabilities
2,989,883
61,011
4,498,937
22,453
7,572,284
12,745
NET ASSETS
'
Invested in capital assets, net of related debt
20,166,842
23,677,859
17,037,540
2,015,116
62,897,357
-
Restricted for debt service
2,655,000
456,705
4,420,000
-
7,531,705
-
Unrestricted
3,261,246
5,519,735
788,748
53,006
9,622,735
609,278
'
TOTAL NET ASSETS
$ 26,083,088
$ 29,654,299
$ 22,246,288
$ 2,068,122
$ 80,051,797
$ 609,278
See accompanying notes to financial statements.
Page 16 ,
0
See accompanying notes to financial statements.
Page 17
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND
NET ASSETS - PROPRIETARY FUNDS
For the Year Ended December 31, 2003
Business -Type Activities - Enterprise Funds
Governmental
Storm
Non major
Activities -
Water
Sewer
Water
Arena
Total
Insurance Fund
OPERATING REVENUES
Charges for services
$ 1,010,260
$ 1,189,764
$ 609,377
$ 308,461
$ 3,117,862
$
Water meters
136,115
-
-
-
136,115
-
Miscellaneous
131,141
5,578
-
-
136,719
30,748
Total Operating Revenues
1,277,516
1,195,342
609,377
308,461
3,390,696
30,748
OPERATING EXPENSES
Personnel services
246,900
247,168
183,679
146,658
824,405
-
Supplies
Professional services and charges
204,691
133,803
9,161
32,347
4,350
56,708
19,873
13,105
238,075
235,963
1,096
28,999
Other services and charges
144,944
26,406
91,355
126,198
388,903
231,019
Metro sewer charges
-
510,640
-
-
510,640
-
Depreciation
440,240
651,436
298,555
53,796
1,444,027
-
Total Operating Expenses
1,170,578
1,477,158
634,647
359,630
3,642,013
261,114
Operating Income (Loss)
106,938
(281,816)
(25,270)
(51,169)
(251,317)
(230,366)
NONOPERATING REVENUES (EXPENSES)
Connection fees
1,152,316
633,074
898,554
-
2,683,944
-
Taxes
-
-
-
-
210,000
Special assessments
78,765
414,512
148,186
-
641,463
-
Intergovernmental
1,570
930
-
-
2,500
-
Investment income
120,948
182,420
113,881
486
417,735
8,975
Net decrease in the fair value of investment
(26,403)
(63,070)
(28,411)
(117,884)
Loss from disposal of fixed assets
(1,252)
(352)
-
-
(1,604)
-
Surcharges and penalties
196,313
9,345
2,183
_
207,841
Interest expense and fiscal agent fees
(97,785)
(5,419)
(204,852)
(308,056)
Total Nonoperating Revenues
1,424,472
1,171,440
929,541
486
3,525,939
218,975
Income (loss) before contributions
and transfers
1,531,410
889,624
904,271
(50,683)
3,274,622
(11,391)
Capital contributions
32,352
110,947
580,826
39,900
764,025
-
Operating transfers in
Operating transfers out
3,219,616
(1,457,258)
1,154,502
(77,095)
2,722,520
(71,702)
-
(14,458)
7,096,638
(1,620,513)
-
-
Change in Net Assets
3,326,120
2,077,978
4,135,915
(25,241)
9,514,772
(11,391)
TOTAL NET ASSETS - Beginning
22,756,968
27,576,321
18,110,373
2,093,363
70,537,025
620,669
TOTAL NET ASSETS - ENDING
$ 26,083,088
$ 29,654,299
$ 22,246,288
$ 2,068,122
$ 80,051,797
$ 609,278
See accompanying notes to financial statements.
Page 17
CITY OF ROSEMOUNT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2003
Business -type Activities - Enterprise Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net Cash Flows From Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds
Net Cash Flows From Noncapital Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Net Cash Flows From Investing Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from debt issued
Debt issuance costs
Debt retired
Capital advances from other funds
Interest paid
Capital contributions
Acquisition and construction of capital assets
Net Cash Flows From Capital and
Related Financing Activities
Net Increase (Decrease ) in Cash
and Cash Equivalents
CASH AND CASH EQUIVALENTS - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
(14,458) (14,458) -
- - - (14,458) (14,458) -
94,545 119,350 85,470 486 299,851 8,975
94,545 119,350 85,470 486 299,851 8,975
1,170,000 - -
(11,700) - -
(245,000) - (370,000)
(4,581) 15,577
(85,382) (5,419) (209,632)
24,163 (80,673) 563,999
(2,221,532) (485,451) (719,736)
(1,374,032) (555,966) (735,369)
- 1,170,000 -
- (11,700) -
- (615,000) -
- 10,996
- (300,433) -
- 507,489 -
(3,426,719) -
(2,665,367) -
654,098 823,578 574,301 (38,769) 2,013,208 (11,624)
$ 5,304,375 $ 4,204,129 $ 4,490,545 $ 65,220 14,064,269 564,342
$ 5,958,473 $ 5,027,707 $ 5,064,846 $ 26,451 $ 16,077,477 $ 552,718
Page 18
Governmental
Activities -
Water
Sewer
Storm
Non major
Totals
Internal
Utility
Utility
Water
Arena
2003
Service Funds
$ 2,616,365
$ 2,058,659 $
1,554,935
$ 277,119
$ 6,507,078
$ 239,091
(479,103)
(594,525)
(330,735)
(179,957)
(1,584,320)
(244,126)
(203,677)
(203,940)
-
(121,959)
(529,576)
(15,564)
1,933,585
1,260,194
1,224,200
(24,797)
4,393,182
(20,599)
(14,458) (14,458) -
- - - (14,458) (14,458) -
94,545 119,350 85,470 486 299,851 8,975
94,545 119,350 85,470 486 299,851 8,975
1,170,000 - -
(11,700) - -
(245,000) - (370,000)
(4,581) 15,577
(85,382) (5,419) (209,632)
24,163 (80,673) 563,999
(2,221,532) (485,451) (719,736)
(1,374,032) (555,966) (735,369)
- 1,170,000 -
- (11,700) -
- (615,000) -
- 10,996
- (300,433) -
- 507,489 -
(3,426,719) -
(2,665,367) -
654,098 823,578 574,301 (38,769) 2,013,208 (11,624)
$ 5,304,375 $ 4,204,129 $ 4,490,545 $ 65,220 14,064,269 564,342
$ 5,958,473 $ 5,027,707 $ 5,064,846 $ 26,451 $ 16,077,477 $ 552,718
Page 18
Non -cash capital, investing & financing activities:
The Water Utility received contributed plant of $1,762,358 during the year. The Sewer Utility received contributed plant of $1,077,407 during the year.
The Storm Water Utility received contributed plant of $2,650,818 during the year.
See accompanying notes to financial statements
Page 19
Business -type Activities - Enterprise Funds
Governmental
Activities -
Water
Sewer
Storm
Non major
Totals
Internal
Utility
Utility
Water
Arena
2003
Service Funds
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
$ 106,938
$ (281,816)
$ (25,270)
$ (51,169) $
(251,317)
(230,366)
Non - operating income
1,427,713
1,057,509
1,048,923
-
-
210,000
Adjustments to Reconcile Operating Income to
Net Cash Flows From Operating Activities
Noncash items included in income
Depreciation
440,240
651,436
298,555
53,796
1,444,027
-
Change in assets and liabilities
Accounts receivable
(48,374)
(59,262)
(12,162)
--
(119,798)
(1,658)
Due from other governments
-
-
-
(31,343)
(31,343)
-
Prepayments
(3,402)
(4,228)
(136)
(1,290)
(9,056)
1,973
Accounts payable
29,064
9,737
7,228
1,059
47,088
(548)
Deposits
(40,490)
(134,930)
(91,203)
-
(266,623)
Accrued liabilities
21,896
21,748
(1,735)
4,150
46,059
-
NET CASH FLOWS FROM
OPERATING ACTIVITIES
$ 1,933,585
$ 1,260,194
$ 1,224,200
$ (24,797) $
4,393,182
$ (20,599)
Non -cash capital, investing & financing activities:
The Water Utility received contributed plant of $1,762,358 during the year. The Sewer Utility received contributed plant of $1,077,407 during the year.
The Storm Water Utility received contributed plant of $2,650,818 during the year.
See accompanying notes to financial statements
Page 19
CITY OF ROSEMOUNT
NET ASSETS
COMPONENT UNIT - PORT AUTHORITY
December 31, 2003
ASSETS
Cash and investments
Receivables
Loans
Special assessments
Prepaid items
Capital assets:
Land
Machinery and equipment
Less accumulated depreciation
Total Assets
LIABILITIES
Accounts payable
Other accrued liabilites and deposits
Noncurrent liabilities
Due within one year
Due in more than one year
Total Liabilities
NET ASSETS
Unrestricted
Total Net Assets
See accompanying notes to financial statements.
Total '
Governmental
Activities '
$ 3,242,389
618,431 ,
175,782
450 ,
440,041
18,620
(6,252)
$ 4,489,461
$ 140,795 ,
141,491
560,000 '
7,150,000
$ 7,992,286 ,
$ (3,502,825) ,
$ (3,502,825)
Page 20 ,
w w ■w ww ww w w w ww � ww ww ww ww ww w w w w
CITY OF ROSEMOUNT
STATEMENT OF ACTIVITIES
COMPONENT UNIT - PORT AUTHORITY
December 31, 2003
See accompanying notes to financial statements.
Page 21
Net (Expense) Revenue
and Changes in Net
Assets Primary
Program Revenues
Government
Operating Capital
Charges for Grants and Grants and
Governmental
Functions /Programs
Expenses
Services Contributions Contributions
Activities
Primary government:
Governmental activities:
General government
$ 13,354
$ - $ - $ -
$ (13,354)
Conservation and economic development
969,840
22,489 - 816
(946,535)
Interest and fiscal charges
361,065
- - -
(361,065)
Total Governmental Activities
1,344,259
22,489 - 816
(1,320,954)
Total primary government
$ 1,344,259
$ 22,489 $ - $ 816
(1,320,954)
General revenues:
Taxes
Property taxes, levied for general purposes
249,721
Property taxes, levied for debt service
1,038,531
Intergovernmental revenues not restricted to
specific programs
14,402
Investment income
90,386
Miscellaneous
68,000
Total general revenues, special items, and transfers
1,461,040
Change in net assets
140,086
Net assets- beginning
(3,642,911)
Net Assets - Ending
See accompanying notes to financial statements.
Page 21
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ROSEMOUNT
INDEX TO NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE
I. Summary of Significant Accounting Policies
A. Reporting Entity
B. Government -Wide and Fund Financial Statements
C. Measurement Focus, Basis of Accounting,
and Financial Statement Presentation
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
2. Receivables
3. Inventories and Prepaid Items
4. Restricted Assets
5. Capital Assets
6. Other Assets
7. Compensated Absences
8. Long -Term Obligations /Conduit Debt
9. Claims and Judgments
10. Equity Classifications
11. Comparative Data /Reclassifications
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
Ill. Stewardship, Compliance, and Accountability
A. Budgetary Information
B. Excess Expenditures Over Appropriations
C. Deficit Balances
IV. Detailed Notes on All Funds
A. Deposits and Investments
B. Receivables
C. Capital Assets
D. Interfund Receivables /Payables and Transfers
E. Long -Term Obligations
F. Lease Disclosures
G. Governmental Activities Net Assets
H. Component Unit
V. Other Information
A. Employees' Retirement System
B. Risk Management
C. Commitments and Contingencies
Page
23
23
24
27
29
29
30
31
31
31
32
32
33
33
34
34
IRRIIIIIIII
35
35
35
36
36
36
36
38
39
42
44
47
47
49
53
53
57
58
Page 22
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Rosemount, Minnesota (the "City ") was formed and operates pursuant to applicable
Minnesota laws and statutes. The governing body consists of a five - member City Council
elected at large by voters of the City. City Council members serve four -year staggered terms
and the major servers a four -year term coinciding with the terms of two of the Council members.
Elections take place every two years.
The financial statements of the City have been prepared in conformity with generally accepted
accounting principles, as applied to governmental units by the Governmental Accounting
Standards Board (GASB). The more significant accounting policies of the City are described
below.
A. REPORTING 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. Component units are legally
separate organizations for which the elected officials of the primary government are financially
accountable. 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. Blended component units,
although legally separate entities, are, in substance, part of the government's operations and
are reported with similar funds of the primary government. Each discretely presented
component unit is reported in a separate column in the government -wide financial statements
(see note below for description) to emphasize that it is legally separate from the government.
Blended Component Unit(s)
None.
Discretely Presented Component Unit(s)
. Rosemount Port Authority
The government -wide financial statements include the Rosemount Port Authority ( "Port
Authority ") as a component unit. The Port Authority is a legally separate organization. The board
of the Port Authority is appointed by the City Council. The City Council reviews and approves all
Port Authority tax levies and the City provides major community development financing for Port
Authority activities. Debt issued for Port Authority activities are general obligations of the City.
The Port Authority's financial data has been presented in this report as a governmental fund
type. Separate financial statements have not been prepared for the Rosemount Port Authority.
Page 23
U
' CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
1 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLI (
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
In December 1998, the Governmental Accounting Standards Board (GASB) issued Statement
No. 33 — Accounting and Financial Reporting for Nonexchange Transactions (GASB 33). In June
1999, GASB issued Statement No. 34 Basic Financial Statements — and Management's
Discussion and Analysis - for State and Local Governments ( GASB 34). In June 2001, GASB
issued Statement No. 37 Basic Financial Statements — and Management's Discussion and
Analysis — For State and Local Governments — Omnibus, (GASB 37), and Statement No. 38
Certain Financial Statement Note Disclosures.
The City of Rosemount made the decision to implement these standards effective January 1,
2003.
Statements No. 34 and 37, among many other changes, add two new "government- wide"
financial statements as basic financial statements required for all governmental units. The
statement of net assets and the statement of activities are the two new required statements.
Both statements are prepared on the full accrual basis. Previously, in accordance with
accounting standards for governmental units, the City used the modified accrual basis of
accounting for certain funds. The modified accrual basis of accounting continues to be the
appropriate basis of accounting for governmental activity fund financial statements.
In addition, all funds in the fund financial statements are reported as business -type activities or
governmental activities. The definitions for these types of activities are discussed in other
portions of Note 1.
Finally, all funds are further classified as major or non -major funds. In reporting financial
condition and results of operations for governmental units, the new standard concentrates on
major funds versus non -major funds.
Statement No. 33 requires capital contributions to proprietary funds to be presented as a change
in net assets rather than being directly credited to net assets. Statement No. 38 requires
additional note disclosures.
Government -Wide Financial Statements
The statement of net assets and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity. The statements
distinguish between governmental and business -type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange
revenues. Business -type activities are financed in whole or in part by fees charged to external
parties for goods or services. Likewise, the primary government is reported separately from
certain legally separate component units for which the primary government is financially
accountable.
i Page 24
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Government -Wide Financial Statements (cont.)
The statement of activities demonstrates the degree to which the direct expenses of a given
function, or segment, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. The City does not allocate indirect expenses to
functions in the statement of activities. Program revenues include 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services, or privileges provided by
a given function or segment, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items
not included among program revenues are reported as general revenues. Internally dedicated
resources are reported as general revenues rather than as program revenues.
Fund Financial Statements
Financial statements of the reporting entity are organized into funds, each of which is
considered to be a separate accounting entity. Each fund is accounted for by providing a
separate set of self - balancing accounts, which constitute its assets, liabilities, net assets /fund
equity, revenues, and expenditure /expenses.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
Funds are organized as major funds or non -major funds within the governmental and proprietary
statements. Emphasis is placed on major funds within the governmental and proprietary
categories. A fund is considered major if it is the primary operating fund of the City or meets the
following criteria:
a. Total assets, liabilities, revenues, or expenditures /expenses of that individual
governmental or enterprise fund are at least 10 percent of the corresponding total for all
funds of that category or type, and
b. The same element of the individual governmental fund or enterprise fund that met the 10
percent test is at least 5 percent of the corresponding total for all governmental and
enterprise funds combined.
c. In addition, any other governmental or proprietary fund that the City believes is
particularly important to financial statement users may be reported as a major fund.
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.
General Debt Service Fund — accounts for resources accumulated and payments made
for principal and interest on long -term debt other than TID or enterprise fund debt.
General Capital Projects Fund — accounts for proceeds from long -term borrowing and
other resources to be used for capital improvement projects.
Page 25
n
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I — SUMMARY OF SIGNIFICANT AC C OU NTING POLICIES (cunt.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
The City reports the following major enterprise funds:
Water Utility — accounts for operations of the water system
Sewer Utility accounts for operations of the sewer system
Storm Water Utility — accounts for operations of the storm water drainage system
The City reports the following non -major governmental and enterprise funds:
Special Revenue Funds — used to account for the proceeds of specific revenue
sources (other than major capital projects) that are legally restricted to expenditures
for specified purposes.
Building CIP Fund
Street CIP Fund
Equipment CIP Fund
Mississippi River Fund
Park Improvements Fund
Great River Energy Project Fund
Crime Reduction Project Fund
Fire Safety Education Fund
GIS Fund
j 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.
In addition, the City reports the following fund type:
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.
Page 26
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
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. Taxes receivable for the following year are recorded as receivables and deferred
revenue. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider are met. Special assessments are recorded as revenue
when earned. Unbilled receivables are recorded as revenues when services are provided.
The business -type activities follow all pronouncements of the Governmental Accounting
Standards Board, and have elected not to follow Financial Accounting Standards Board
pronouncements issued after November 30, 1989.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the City's water and
sewer utility and various other functions of the government. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recorded when
they are both measurable and available. Available means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the
City considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures are recorded when the related fund liability is incurred,
except for unmatured interest on long -term debt, claims, judgments, compensated absences,
and pension expenditures, which are recorded as a fund liability when expected to be paid with
expendable available financial resources.
Property taxes are recorded in the year levied as receivables and deferred revenues. They are
recognized as revenues in the succeeding year when services financed by the levy are being
provided.
Intergovernmental aids and grants are recognized as revenues in the period the City is entitled
the resources and the amounts are available. Amounts owed to the City which are not available
are recorded as receivables and deferred revenues. Amounts received prior to the entitlement
period are also recorded as deferred revenues.
Special assessments are recorded as revenues when they become measurable and available as
current assets. Annual installments due in future years are reflected as receivables and deferred
revenues.
Page 27
8Z abed
•selew1lso esogl woil ja11ip pinoo sllnsai lenlo`d - poljad bulliodaj egl 6ulinp
sasuadx9/saanllpuedxa pue senuanaJ 10 slunowe paliodai au1 pue sluewelels Ieloueull eq;
10 alep eql le seil!i!gell pue slesse lue6ulluoo 10 ainsoloslp pue salllllgell pue slasse 10 slunowe
paliodej eql 13911e legl suolldwnsse pue selewilse eNew of luewe6euew sailnbei soldlouljd
6u11un000e peldeooe Allejeua6 gl!m ftllwjoluo3 ul sluawelels leloueull 10 uo1lejedaid 9g1
•sasuadxa pue sanuanaJ bulleiedouou se paliodai
aae uolllu1lep slgl 6ulleaw jou sasuadxa pue senuanaJ IIy 'slasse lelldeo uo uollepeidep
pue `sasuadxa anileJlslulwpe `s831nJas pue sales 10 lsoo aql apnioul spun} Ajelaljdoid
jol sasuadxa 6ulleied0 'sa3lnJas pue sales col siewolsno of sa6aego We spun} eueje pue
`JaleM wiOls games `jalem eql 10 sanuanaa 6ulleiedo ledlouljd eq1 - suolleiedo 6ulo6uo Iedlouljd
s,punl Aieleudoid a g11M U01109UUOO ul sp006 6UIJeAli9p pue 6ulonpoid pue seolnJes 6ulpinoid
woj1 llnsai Alleaauab sasuadxa pue sanuanaa 6ullejed0 - swell Buperadouou woal sasuadxa
PUB senu9n9J Bugejedo gsln6ullslp spun} Ajeleijdoid aql '686 L `0£ jagwanoN J911e penssl
sluawaounouoid pjeo8 spiepuelS 6ullun000y leioueul j mollol of 1ou paloele aneq pue `pJeo8
spiepuelS 6ullun000y leluawu.lano0 941 10 sluaw93unouo.id lie moilol spun} Ajelaudoid eql
- elou s!ql ui Alsnolnajd peclposep se 1 6ugun000e 10 slseq lenjooe eql pue snool
luewainseew saoinosai olwou000 eql 6ulsn paliodai 9ie sluawalels leloueull punt Ajelapdoad
•pazlu600aa sl anuanaJ pue
leegs aoueleq aql woJ1 panowaa sl anuanaJ paijalap jol Allllgeli eql `saoinosai eql 01 w1e13 Jebel
e seq Al10 aql uegm jo `law eje eiielpo uolllu600ei anuanaj gloq uagm `spoljad luenbesgns
ul •sajnllpuedxe 6u!Al!lenb to eouaamoul eql of jolad p9nl938J aae S91UOw 1uea6 uagnn se `wag}
01 wlelo 1e691 a seq Al!O eq1 ajolaq p9n193aa aae saoinosai uegm aspe osle sanuanaa paJJalaa
•pouad luaaino eql ul uoipubooaa jol elaaluo ,elgellene,, pue ,elgejnseew,, aql gloq leaw lou
seop anuanaJ Iegualod a uegm asue sanuanaa paJJalap `slu9w9lels Jeloueu1l punt Jelu9wuJano6
.1o3 •suollejado s,jeeA luenbesgns jol aae goigm jeaA 1uanno aql ul palnal saxel woaI aslJe
senuanaj poijejed •hags aoueleq spun} Jelu9wuJ9no6 Sll uo sanuanaa paJjejep sliodai x(110 eql
•anoge peglj3sep elialpo eql japun elgellene pue algemseew uegm jo gseo ul p9nl939J
uegm pezlu600aj eje sanuanaa snoeuellaosiw pue seal uolleaaoei `seal uolloodsul `sainllaliol
PUB scull se pons sanuanaa Ie.Iau96 J9gl0 •lsaaalul pue sluewssesse Ieloods `sa3lnJas
aol se6aego ollgnd `saxel snoeueliaosiw `saxel Alaadoad apnloul Ienaooe of elq!ldeosns senueAeU
(•luoo) s ;uawa ;e ;S leloueu& pun_4
(•luo3)
N011b'1N3S.gdd 1N3W31b'1S 767ONVNid ONV ONUNn000d do Sisve `snoo_q 1N3W3hinsb3llV '0
('lu0o) S3101"I0d SMINn000V iNdOIAINSIS =iO AuvwwnS — 131ON
£OOZ `6£ aagweoad
S1N3W31t11S - I`dIONVN13 01 S310N
INnomsoa :jO Jaio
1
II
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) ,
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY
9. 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. Cash with fiscal
agents are not considered to be cash equivalents, and therefore are excluded from cash and
cash equivalents in the cash flow statements.
Investment of City funds is restricted by state statutes. Available investments are limited to:
Direct obligations or obligations guaranteed by the United States or its agencies, commercial ,
paper, repurchase or reverse repurchase agreements with banks that are members of the
Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer
in U.S. Government Securities to the Federal Reserve Bank of New York, or municipalities, '
bankers acceptances of United States banks eligible for purchase by the Federal Reserve
System, and shares of investment companies registered under the Federal Investment Company
Act of 1940 and whose only investments are direct obligations guaranteed by the United States
or its agencies. The City's investments at December 31, 2003, are stated at fair value.
Investment purchases are charged and maturities are deposited to the consolidated bank
account. The purpose of this consolidation is to reduce administrative costs and to provide a ,
single cash balance available for the maximization of investment earnings. Each fund shares in
the investment earnings according to its average cash and investment balances. Cash is
transferred from those funds with available cash resources to cover any negative cash balances '
in other funds at year -end.
2. Receivables
Property tax levies are set by the City Council in the fall of each year and are certified to Dakota
County for collection in the following year. In Minnesota, counties act as collection agents for all
property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on January 1
and are recorded as receivables by the City at that date. Property taxes are accrued and
recognized as revenue in the year collectible, net of delinquencies.
Real property taxes may be paid by taxpayers in two equal installments on May 15 and October
15. Personal property taxes may be paid on February 29 and June 30. The County provides tax '
settlements to cities and other taxing districts five times per year, in January, April, June, July
and December.
Taxes which remain unpaid 60 days after year end are classified as delinquent taxes receivable
and are fully offset by deferred revenue because they are not known to be available to finance
current expenditures.
Page 29 1
0£ a6ed
- sluawalels leloueull pun; pue apron- IUawuJ9no6 yloq ul swa ;I piedaid se papiooaa
aae pue spored 6uliun000e ajninl of algeolldde slsoo loallaa sJopuaA of sluawAed ulelia0
'pasn uaym asuedxa
eoueuelulew pue uoilejado `uolionilsuoo of pa6jey3 pue `96eJ9ne p9146lam uo paseq lsoo le
penleA aae Aayl 'alesaJ Jo} lou ale Aayl - Niom aoueualulew pue uoilejado jol pue uollonilsuoo
jol pasn Ailejaua6 We sauoluanul pun; Ajelaijdoad lueolPAS IOU Senn AJoluanul pua
- jee,k 'paseyoand uaym slun000e ajnllpuedxe of p96Jeyo aye swan AJoluanul pun; IeluawuaanOO
suia ;l pledaid pue SOIJO ;uaAuI •g
'Uolleudoidde aol elgellene IOU We `ajolajayl `pue saomosai leloueuil
elgeliene elgepuedxe ainlllsuoo lou op Aayl leyl seleoipul yoiym lun000e gAJ8S9J aoueleq punt
e Aq Allenbe lasl aie spun; iay o; Saouenpe 'sluawelels leloueul; punt lelU9wUJ8no6 ay; Ul
- .seoueleq leuaalul„ se sivawelels leloueul;
apim- luawuJan06 ayi Ul poliodai We sallinlloe edAl- ssauisnq pue salllnllOe leluawuaan06
ayi ueamlaq 6ulpuelslno saoueleq lenpisaa Auy 'slasse lau 10 luawalels ayi Ul peleuiwile ale
saliinlloe leluawuJ9no6 ulyllm spun; uaamiaq salgeAed pue salgeniaoaa punlialul u'spunl iaylo
of pue wall saouenpe„ se poliodai aae (uoiliod luaimouou) sueol punlialui waai - buo - 1 „
aaylo wal pue of enp„ se pal.loda.l ale sueol punlialui weal -ljoyS - spunl uaamleq pamo slunowe
ul iinsai Aew leyl spunl lenpinlpul ueamiaq in000 suolloesuejl `suoilejado to osinoo ayi 6uljna
'alq!loelloo %006 aq of pajaplsuoo aje algenlaoaa slunoauy
- uoiloe Ilounoo uo paseq pauodlsod uaeq sey luawAed yolym jol sluawssasse - aayl0
•sieaA
aminl ul siaumo Aliadoid of pali!q aq Illm yolym `sl:uawileisui luawssasse - pajjala(i
'pied IOU Inq saaumo Aliad of palilq slunowe - luenbuilad
'Ai10 ayi of pailiwai lou pue AlunoO eloNea Aq poloolloo lunowe - luaiin0
:sluouodwoo buimollol ayl sapnloul algenlaoaa sluawssasse IeloedS
'sallleued luawAedajd jo isaialui Inoyllm
sluawileisui ajnlnl lelol Aedaid of pamolle aje saaumo AljadOJd 'saxe} Aliadoid se jauuew
awes ayi ul �(luno0 ayi Aq palpuey si (lsaialui buipnloul) siuewllelsui lenuue to uoiloollo0 'anssi
puoq palelai ayi to sjeaA to weal ayl qpm lualsisuoo Alleaau96 sjeaA to weal a nano alglloalioo
ale sluawssasse ay1 'alaldwoo aje sloefoid lenpinlpul ayl Uaym silo luawssasse ayl sidope
Allensn A110 ay1 - sainleiS alelS ylim eouep000e ul sloefoid luawanojdwi sluawssasse lepeds
to sisoo aigessasse ayi jol salliadald pelilaueq ayl 4sule6e palnai ale sluawssasse leloedg
('luoo) sa /penlaaaZl •z
('IUOO) Aii 210 S13SSt/ 13N ONV `S3/11718VI - I `S13SSd "Q
('IuOO) s3131 Od JNI1NnOood 1NVOIdINJIS d0 ANvwwn$ - 1310N
£OOZ `6£ jagweoaa
S1N31N31`d1S IVIONVNId Ol S310N
INnomsou =iO Ally
CITY OF ROSEMOUNT 1
NOTES TO FINANCIAL STATEMENTS '
December 31, 2003
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLI (co 1
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.
4. Restricted Assets
Mandatory segregations of assets are presented as restricted assets. Such segregations are
required by bond agreements and other external parties. Current liabilities payable from these
restricted assets are so classified. The excess of restricted assets over current liabilities
payable from restricted assets will be used first for retirement of related long -term debt. The
remainder, if generated from earnings, is shown as restricted net assets. As of December 31,
2003, the City did not have any restricted assets.
5. Capital Assets
Government —Wide Statements
In the government -wide financial statements, fixed assets are accounted for as capital assets.
Capital assets are defined by the government as assets with an initial cost of more than $500 for
general capital assets and infrastructure assets, and an estimated useful life in excess of five
years. All capital assets are valued at historical cost, or estimated historical cost if actual
amounts are unavailable. Donated fixed assets are recorded at their estimated fair value at the
date of donation.
Prior to January 2003, infrastructure assets of governmental funds were not capitalized. Upon
implementing GASB 34, governmental units are required to account for all capital assets,
including infrastructure, in the government -wide statements prospectively from the date of
implementation. Retroactive reporting of all major general infrastructure assets is encouraged
but not required until January 1, 2007, when GASB 34 requires the City to retroactively report all
major general infrastructure assets acquired since January 1, 1980. For the year ended
December 31, 2003, the City has retroactively reported the road and parking lot network
infrastructure acquired by its governmental fund types. Other governmental fund infrastructure
including bike trail and sidewalk networks have not yet been retroactively reported.
Additions to and replacements of capital assets of business -type activities are recorded at
original cost, which includes material, labor, overhead, and an allowance for the cost of funds
used during construction when significant. For tax - exempt debt, the amount of interest
capitalized equals the interest expense incurred during construction netted against any interest
revenue from temporary investment of borrowed fund proceeds. During the year ended
December 31, 2003, $287,250 of interest expense was incurred, of which none was capitalized.
The cost of renewals and betterments relating to retirement units is added to plant accounts.
The cost of property replaced, retired or otherwise disposed of, is deducted from plant accounts
and, generally, together with removal costs less salvage, is charged to accumulated
depreciation.
Page 31
1 CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTI P (co
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
5. Capital Assets (cont.)
Government —Wide Statements (cont.)
Depreciation of all exhaustible fixed 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, fixed assets used in governmental fund operations are
accounted for as capital outlay expenditures of the governmental fund upon acquisition. Fixed
assets used in proprietary fund operations are accounted for the same way as in the
government -wide statements.
6. 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.
7. Compensated Absences
Under terms of employment, employees are granted vacation, sick and comp time benefits in
varying amounts. These benefits are based upon union contracts and City resolutions as
applicable. Amounts carried forward for vacation and comp time accruals are governed by these
contracts and resolutions. Sick pay accruals may be carried forward indefinitely.
All vested vacation, sick leave and comp time pay is accrued when incurred in the government -
wide and proprietary fund financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a result of employee resignations
and retirements, and are payable with expendable available resources.
Payments for vacation, sick and comp time leave will be made at rates in effect when the
benefits are used. Accumulated vacation, sick and comp time leave liabilities at December 31,
2003 are determined on the basis of current salary rates and include salary related payments.
1
Page 32
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NETASSETS OR EQUITY (cont.)
8. Long -Term Obligations /Conduit Debt
All long -term obligations to be repaid from governmental and business -type resources are
reported as liabilities in the government -wide statements. The long -term obligations consist
primarily of notes and bonds payable, and accrued compensated absences.
Long -term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing
sources and payments of principal and interest are reported as expenditures. The accounting in
proprietary funds is the same as it is in the government -wide statements.
For the government -wide statements and proprietary fund statements, bond premiums and
discounts are deferred and amortized over the life of the issue using the straight -line method.
Gains or losses on prior refundings are amortized over the remaining life of the old debt, or the
life of the new debt, whichever is shorter. The balance at year end for both premiums /discounts
and gains /losses, as applicable, is shown as an increase of decrease in the liability section of
the balance sheet.
The City has approved the issuance of industrial revenue bonds (IRB) for the benefit of private
business enterprises. IRB's are secured by mortgages or revenue agreements on the associated
projects, and do not constitute indebtedness of the City. Accordingly, the bonds are not reported
as liabilities in the accompanying financial statements. At year end, the aggregate principal
amount for the six issues outstanding could not be determined; however, their original issue
amounts totaled $7,175,000.
9. 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 33
K a6ed
•uol;ejuasaid s,jea�( juaiino aqj gllnn jualsisuoo aq O} japio ul palilssepai
uaaq aneq elep jean( joiad aql ui paluesaid slunowe weliao `osly 'peal of }lnol1pp pue xeldwoo
Ainpun s}uawal:els ay; aNew pinonn uolsnloul ilaq; souls sluawalels ale ul paluesaid uaaq
jou seq punj Aq e}ep anl}eJedwoo `JanannoH •spun] aseq; ;o suolleiado pue uolllsod lelaueull
aqj ul sa6Uego aq; 10 6ulpuelsaapun Ue apinoid of japio ul s}uawalels Ieloueull buiAuedw000e
aq} jo suolloas paloalas ul paluesaid uaaq aneq jean( joud eqj JOI elep Iejo} anl}eaedwoo
suo►;e3M!SSej39a1e ;ea an►;eredcuoo •tt
•sjUawaJe ;s apinn- }U9WUJ9no6 aqj Ill se awes aqj p811lsselo sl
Allnbe pun} Aae}aljdad •uol;eladoidde aol elgellene sl Jl saIeolpul golgnn ` „paleu6lsepun„ palagel
sl aoueleq punk panJasaJun jo aoueleq eqj - u pa;eu6lsap„ palagel ale golgnn `sesn ollloads
jol juawa6euew Aq apse las spun] sapnloul aoueleq punj pamasajun •panJasaaun pue panJasaJ -
se paljlsselo aagljnj sl aoueleq punj •aoueleq punj se paipsselo sl A}lnba punj IeIUGWUJanOO
s;uawa ;e ;S pund
•papeau ale Aeql se saoinosai pajoulsajun uagl `;sig saoinosai pa;oulsai asn
o} Aollod s,Al!o eqj sl }l `asn jo; algellene ale saoinosai pa;olllsajun pue pa}olaisai q;oq uagM
.ggap palelaj }o lau `slasse Ielldeo ul pa;sanul„ JO „p9j3ujs9J,,
jo uoliluldap 941 }saw iou op iegi siasse iau jagio II`d — siasse iau paiou;sajun - o
•uollelsl6el bu!Igeue
JO suolslnoid leuollnll;suoo g6nojq; noel (Z `JO sIuawuJ9nO6 Jaq )o 10 suolleln6aa
jo snnel jo `sioinquluoo `sioluej6 `siollpajo se Bons sdnoa6 Ieuiaixe (L Aq jaq ;la
asn j►agl uo paoeld slulejlsuoo q;lnn slasse ;au }o sislsuoo — slasse lau pajoulsa�I .q
•sjasse asogl }o Iuawanoidwl jo `uol}oni}suoo `uoipslnboe eqj o; elgelnq!j;le
ale ;eq} sbulnnoajoq .Iaq ;o jo `sa;ou `sebe6liow `spuoq Aue to saoueleq bulpue ;s ;no
aq; Aq peonpai pue uol;epeidep pa}elnwnooe jo jau `slasse ie}ldeo pajoljisai
6ulpnioul slasse lelldeo jo slslsuo0 — jgap pajelai jo lau `slasse Ie;ldeo ul pajsanui •e
s;uauodwoo aajgl ul peAeldslp pue slasse lau se paljlsselo sl Allnb3
s;uawa ;e ;S ap►M ;uawuaanof)
suo! ;&3y!ssejo A;!nb3 'o6
('}UOO) dlinog uo S13SSd 13N aNV `S3111 `S.Lassv V
('IU00) S3131"IOd JNIlNn000d 1NdoIdINJIS d0 n,iivwwns — 1310N
EOOZ `L£ jagwaoaa
S1N3W31`d1S IVIONdNl3 Ol S31ON
1Nnow3sou =iO Ally I
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE II - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANAT ION 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 $17,293,332 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 $ 15,445,000
Capital leases payable 1,090,044
Compensated absences 496,782
Accrued interest 261,506
Combined Adjustment for
Long -Term Liabilities $ 17,293,332
NOTE III - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Budgetary information is derived from the annual operating budget and is presented using the
same basis of accounting for each fund as described in Note I. C. with departures from GAAP
for encumbrances.
Annual budgets have been adopted for the general fund and three special revenue funds,
Building CIP, Street CIP and Equipment CIP. The capital project funds adopt project - length
budgets and therefore are not included in the annual budgeting process. Formal budgetary
integration is not employed for debt service funds because effective budgetary control is
alternatively achieved through general obligation bond indenture provisions.
The budgeted amounts presented include any amendments made. Or, the budgeted amounts
presented are as presented in the original budget and no amendments were adopted during the
year. The appropriated budget is prepared by fund, department and function. The legal level of
budgetary control is at the department level. The City Council may authorize department heads
to transfer budgeted appropriations within departments. The Council approved several
supplemental budgetary appropriations during the year, but they were not considered material.
Appropriations lapse at year end unless specifically carried over. Carryovers to the following
year were $150,051.
Page 35
1
J
i
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE III — STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (cunt.)
B. EXCESS EXPENDITURES OVER APPROPRIATIONS
Actual expenditures exceeded budgeted expenditures in the following special revenue funds:
Budget Actual Excess
Building CIP $26,500 $97,905 $71,405
Equipment CIP 723,600 978,025 254,372
The City controls expenditures at the department level. Some individual departments
experienced expenditures which exceeded appropriations. The detail of those items can be
found in the City's year -end budget to actual report.
C. DEFICIT BALANCES
Generally accepted accounting principles require disclosure of individual funds that have deficit
i balances at year end.
As of December 31, 2003, the following individual special revenue fund held a deficit balance:
Amount Reason
Great River Energy Project $ 297 allocation of negative cash balance
The City will finance this deficit through external or internal sources in future years.
NOTE IV — DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool for all funds (including the component unit) which
is recorded on the statement of net assets as follows:
Per statement of net assets — City $ 34,544,342
Per statement of net assets - Port Authority 3,242,389
Total $ 37,786,731
i Total cash and investments consist of the following:
Petty cash and cash on hand $ 2,400
Deposits with financial institutions 28,157,823
Investments 9,626,508
Total Cash and Investments $ 37,786,731
Page 36
1
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
DEPOSITS
The City has the authority from the City Council to maintain deposits with various financial
institutions that are members of the Federal Reserve System. As required by Minnesota
Statutes, any of the City's deposits are to be protected by $100,000 of federal depository
insurance and pledged collateral. The market value of pledged collateral must equal 110% of the
deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged).
At December 31, 2003, the carrying amount of the City's deposits was $28,157,823 and the
bank balance was $29,686,600. The difference between the carrying amount and the bank
balance represents outstanding checks and deposits in transit.
Of the bank balance, all was covered by federal depository insurance, or by perfected collateral
pledges held by the City's agent in the City's name.
Fluctuating cash flows during the year due to tax collections, receipt of state aids and /or
proceeds from borrowing may have resulted in temporary balances exceeding insured and
collateralized amounts.
INVESTMENTS
The City's investments are categorized to give an indication of the level of custodial credit risk
assumed by the entity at year end. Category 1 includes items that are insured or registered or
which are evidenced by securities held by the City or its agent in the City's name. Category 2
includes uninsured and unregistered investments for which the securities are held by the
counterparty's trust department or agent in the City's name. Category 3 includes uninsured and
unregistered investments with securities held be the counterparty or its trust department or
agent but not in the City's name.
Category
1 2 3
US Government Securities 9,626,508 $ - $ - $ 9,626,508
The City had no significant type of investment during the year not included in the above
schedule
D
Carrying
Amount
Fair Value
Page 37 1
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE IV - DETAILED NOTES ON ALL FUNDS (cont.)
B. RECEIVABLES
Receivables as of year end for the government's individual major funds and nonmajor and
internal service in the aggregate, including the applicable allowances for uncollectible accounts,
are as follows:
Receivables:
Accounts $
Debt
Nonmajor
Internal
- $ 675,234
Service-
Governmental
Service
109,984
Governmental Activities
General
General
Funds
Funds
Total
Receivables:
45,631 45,631
Gross receivables
305,325
606,470
Taxes
$ 531,873
$ -
$
$ - $
531,873
Accounts
37,666
-
18,018
1,658
57,342
Special assessments
60,066
4,677,058
63,355
-
4,800,479
Delinquent special assessments
883
100,087
5,869
-
106,839
Due from other governments
10,433
-
-
-
10,433
Gross receivables
640,921
4,777,145
87,242
1,658
5,506,966
Less: Allowance for
Uncollectibles
-
-
-
-
-
Net Total Receivables
$ 640,921
$ 4,777,145
$ 87,242
$ 1,658 $
5,506,966
Amounts not expected to be collected
within one year
$ 35,604
$ 2,981,653
$ -
$ - $
3,017,257
Nonmajor
Storm
Business -
Business -Type
Water
Sewer
Water
Type
Activities
Utility
Utility
Utility
Activities
Total
Receivables:
I Page 38
Accounts $
254,684 $
277,595 $
142,955 $
- $ 675,234
Special assessments
50,641
328,875
109,984
- 489,500
Due from other governments
-
-
-
45,631 45,631
Gross receivables
305,325
606,470
252,939
45,631 1,210,365
Less: Allowance for
Uncollectibles
-
-
-
- -
Net Total Receivables $
305,325 $
606,470 $
252,939 $
45,631 $ 1,210,365
Amounts not expected to be collected
within one year $
33,930 $
220,350 $
73,689 $
- $ 327,969
i
1
I Page 38
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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. Property taxes
levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the
current period. Governmental funds also defer revenue recognition in connection with resources
that have been received, but not yet earned. At the end of the current fiscal year, the various
components of deferred revenue and unearned revenue reported in the governmental funds
were as follows:
Unavailable Unearned Totals
Delinquent property taxes receivable
Delinquent special assessments
Special assessments not yet due
Donations for future projects
Total Deferred /Unearned Revenue
for Governmental Funds
C. CAPITAL ASSETS
$ 107,890
106,839
4,235,500
57,392
r
$ 107,890
106,839
4,235,500
57,392
$ 4,450,229 $ 57,392 $ 4,507,621
Capital asset activity for the year ended December 31,2003 was as follows:
Beginning Ending
Balance Additions Deletions Balance
Governmental Activities
Capital Assets Not Being Depreciated:
Land $ 2,487,464 $ 85,020 $ - $ 2,572,484
Construction in progress 1,578,213 4,607,747 - 6,185,960
Total Capital Assets
Not Being Depreciated $ 4,065,677 $ 4,692,767 $ - $ 8,758,444
Capital Assets Being Depreciated:
Improvements
Buildings
Machinery and equipment
Roads
Parking lots
Total Capital Assets
Being Depreciated
$ 721,145 $ 215,402 $ - $ 936,547
9,901,877 9,029 - 9,910,906
6,320,323 668,887 269,374 6,719,836
19,752,621 591,115 57,906 20,285,830
296,206 35,738 - 331,944
36,992,172 1,520,171 327,280 38,185,063
Page 39 1
0
I CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
I
December 31, 2003
I NOTE IV — DETAILED NOTES ON ALL FUNDS (c ont.)
Governmental Activities
General government
Public safety
Public works, which includes the depreciation of roads and parking lots
Leisure activities
Total Governmental Activities Depreciation Expense
I
Business -Type Activities
Capital Assets Not Being Depreciated:
Land
Construction in progress
Beginning
Balance Additions
$ 160,680
215,301
586,878
183,410
$ 1,146,269
Ending
$ 448,497 $ 513,708 $ - $ 962,205
8,211,476 6,504,740 6,877,153 7,839,063
'
C. CAPITAL ASSETS (cont.)
Other Capital Assets
Buildings
Machinery and equipment
Mains and lines
Total Capital Assets
Beginning
Being Depreciated
Ending
Balance Additions
Deletions
Balance
'
Governmental Activities (cont.)
Less: Accumulated Depreciation for:
Improvements
$ 397,932 $
40,313
$ -
$ 438,245
Buildings
1,690,997
198,089
_
1,889,086
'
Machinery and equipment
3,010,280
511,752
3,522,032
Roads
4,817,127
388,054
57,612
5,147,569
Parking lots
130,023
8,061
-
138,084
Total Accumulated Depreciation
10,046,359
1,146,269
57,612
11,135,016
Total Depreciated Capital
Assets, Net of Depreciation
$ 26,945,813 $
373,902
$ 269,668
$ 27,050,047
Depreciation expense was charged to functions as follows:
Governmental Activities
General government
Public safety
Public works, which includes the depreciation of roads and parking lots
Leisure activities
Total Governmental Activities Depreciation Expense
I
Business -Type Activities
Capital Assets Not Being Depreciated:
Land
Construction in progress
Beginning
Balance Additions
$ 160,680
215,301
586,878
183,410
$ 1,146,269
Ending
$ 448,497 $ 513,708 $ - $ 962,205
8,211,476 6,504,740 6,877,153 7,839,063
'
Total Capital Assets
Not Being Depreciated
Other Capital Assets
Buildings
Machinery and equipment
Mains and lines
Total Capital Assets
Being Depreciated
$ 8,659,973 $ 7,018,448 $ 6,877,153 $ 8,801,268
$ 5,896,547 $ 180,331 $ - $ 6,076,878
1,506,795 122,083 33,360 1,595,508
74,119,225 9,657,538 - 83,776,763
81,522,567 9,959,952 33,360 91,449,159
Page 40
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE IV — DETAILED NOTES ON A LL FU (co
C. CAPITAL ASSETS (cont.)
The following is a schedule of interfund advances as of December 31, 2003:
Receivable Fund Payable Fund
Sewer Building CIP
Sewer Water
Subtotal — Fund Financial Statements
Less: Fund eliminations
Total - Government -Wide Statement of Net Assets
Amount
$ 249,111 $ 37,563
103,797 98,985
$ 352,908 $ 336,548
(103,797 (98,985
$ 249,111 $ 237,563
Amount Not
Due Within
One Year
Page 41
Beginning
Ending
Balance
Additions
Deletions Balance
Business -Type Activities (cont.)
Less: Accumulated depreciation for:
Land improvements
$ 7,855 $
796
$ - $ 8,651
Buildings
903,571
120,596
- 1,024,167
Machinery and equipment
869,544
111,962
29,154 952,352
Mains and lines
27,134,896
1,210,671
- 28,345,567
Total Accumulated Depreciation
28,915,866
1,444,025
29,154 30,330,737
Total Depreciated Capital
Assets, Net of Depreciation
$ 52,606,701 $
8,515,927
$ 4,206 $ 61,118,422
Depreciation expense was charged to functions as follows:
Business -Type Activities
Water
$ 440,240
Sewer
651,436
Storm water
298,555
Arena
53,796
Total Business -Type Activities
Depreciation Expense
$ 1,444,027
The following is a schedule of interfund advances as of December 31, 2003:
Receivable Fund Payable Fund
Sewer Building CIP
Sewer Water
Subtotal — Fund Financial Statements
Less: Fund eliminations
Total - Government -Wide Statement of Net Assets
Amount
$ 249,111 $ 37,563
103,797 98,985
$ 352,908 $ 336,548
(103,797 (98,985
$ 249,111 $ 237,563
Amount Not
Due Within
One Year
Page 41
' CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31 2003
' NOTE IV — DETAILED NOTES ON ALL FUNDS (co
D. INTERFUND RECEIVABLESIPAYABLES AND TRANSFERS
' The principal purpose of this interfund loan was to finance the public works building expansion
in 1999.
' 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 a special revenue fund. The sewer fund is
charging the other funds interest on the advance based on the average outstanding advance
balance during the year at a rate of 5 %. Following is a detailed repayment schedule:
Principal Interest Totals
2004 $ 16,360 $ 17,652 $ 34,012
' 2005 17,178 16,834 34,012
2006 18,037 15,975 34,012
2007 18,939 15,073 34,012
' 2008 19,886 14,126 34,012
2009-2013 115,377 54,683 170,060
2014-2018 147,131 22,929 170,060
Total $ 352,908 $ 157,272 $ 510,180
Page 42
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE IV — DETAILED NOTES ON AL F (cont.)
D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (cunt.)
The following is a schedule of interfund transfers:
Fund Transferred To Fund Transferred From
General Nonmajor enterprise
Debt Service Fund Capital projects
Water
Storm water
Capital Project Nonmajor special
revenue
Nonmajor special
revenue
Sewer
Water
Storm Water
General
General
Non -major General
governmental funds
Capital projects
Non major enterprise
Enterprise Fund
Water Capital Project
Sewer Capital Project
Storm Water
Storm Capital Project
Subtotal — Fund Financial Statements
Less: Fund eliminations
Total — Government -Wide Statement
of Net Assets
Amount
Principal Purpose
$ 3,500
Building & grounds maintenance
295,970
To close construction fund
154,000
To close construction fund
20,000
Storm portion of debt issue
4,933
To close construction fund
160,000
Street CIP levy portion of
project
77,095
Sewer share of project
118,958
Water share of project
51,702
Storm share of project
97,984
Special assessment portion of
project
410,852
Reserves covering internally
funded portion of project
914,000
Fund capital projects
132,029
Close project
10,958
Share of payment on ice
resurfacer
2,061,316
Contributed plant
1,154,502
Contributed plant
26,000
Water share of bond issue
2,696,520
Contributed plant
8,390,319
2,914,194
$ 5,476,125
Page 43
CITY OF ROSEMOUNT
I Page 44
NOTES TO FINANCIAL STATEMENTS
'
December 31, 2003
'
NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND RECEIVABLESIPAYABLES 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.
'
E. LONG -TERM OBLIGATIONS
Long -term obligations activity for the year ended December 31, 2003 was
as follows:
'
Amounts
Beginning
Ending
Due Within
Balance Increases Decreases
Balance
One Year
'
GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable:
General obligation debt $ 23,585,000 $ 1,945,000 $ 10,085,000 $
15,445,000
$ 2,200,000
Other Liabilities
Vested compensated absences 438,426 496,782 438,426
496,782
238,287
Capital leases 1,183,730 74,257 167,943
1,090,044
177,672
'
Total Other Liabilities 1,622,156 571,039 606,369
1,586,826
415,959
Total Governmental Activities
Long -Term Liabilities $ 25,207,156 $ 2,516,039 $ 10,691,369 $
17,031,826
$ 2,615,959
BUSINESS -TYPE ACTIVITIES
Bonds and Notes Payable:
General obligation debt $ 6,520,000 $ 1,170,000 $ 615 000 $
7,075,000
$ 600,000
Subtract Deferred Amounts For:
'
Discounts 48,491 11,700 7,524
Sub -total 6,471,509 1,158,300 607,476
52,667
7,022,333
-
600,000
Other Liabilities:
'
Vested compensated absences 57,672 101,073 57,672
101,073
48,515
Total Business -Type Activities
Long -Term Liabilities $ 6,529,181 $ 1,259,373 $ 665,148 $
7,123,406
$ 648,515
I Page 44
t
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS
December 31, 2003 '
NOTE IV - DETAILED NOTES ON ALL FUNDS (cont.) '
E. LONG -TERM OBLIGATIONS (cont.)
General Obligation Debt '
All general obligation notes and bonds payable are backed by the full faith and credit of the City.
Notes and bonds in the governmental funds
will be retired
by future
property tax levies or tax
'
increments accumulated by the debt service fund. Business -type activities
debt is
payable by
revenues from user fees of those funds or, if the revenues
are not sufficient,
by future tax levies.
'
Date of
Final
Interest
Original
Balance
Issue
Maturity
Rates
Indebtedness
12 -31 -03
Governmental Activities
'
General Obligation Debt
Fire Station Bonds, Series 1996 A
1996
1997 -2016
4.1% to 6.0%
$ 1,780,000
$ 1,315,000
Refunding Bonds, Series 2001 E
2001
2004-2013
3.1% to 4.6%
725,000
725,000
Improvement Bonds, Series 1998 A
1998
2000 -2009
3.9% to 4.7%
2,010,000
1,150,000
Improvement Bonds, Series 1999 A
1999
2002 -2011
4.3% to 4.8%
3,715,000
2,475,000
Improvement Bonds, Series 1999 B
1999
2002 -2011
4.2% to 5.1%
4,395,000
3,220,000
Improvement Bonds, Series 2001 A
2001
2003 -2012
3.0 % to 4.4%
1,325,000
1,220,000
,
Improvement Bonds, Series 2002 A
2002
2004 -2013
2.3% to 4.0%
3,395,000
3,395,000
Improvement Bonds, Series 2003 A 2003
Total Governmental Activities - General Obligation
2005 -2014
Debt
2.0% to 3.3%
1,945,000
1,945,000
$ 15,445,000
,
Date of
Final
Interest
Original
Balance
Issue
Maturity
Rates
Indebtedness
12 -31 -03
'
Business -Type Activities
General Obligation Debt
,
Water Rev. Refunding Bonds, Series 1993C
1993
1998 -2005
3.8% to 5.0%
$ 945,000
$ 270,000
Storm Water Revenue Bonds, Series 1994B
1996
1998 -2012
4.3% to 5.8%
1,035,000
705,000
Water Revenue Bonds, Series 1996C
1996
1998 -2005
4.3% to 5.1%
500,000
140,000
Storm Water Revenue Bonds, Series 1999C
1999
2002 -2015
4.7% to 5.4%
855,000
735,000
'
Water Revenue Bonds, Series 2000A
2000
2002 -2016
4.4% to 5.4%
1,160,000
1,075,000
Storm Water Revenue Bonds, Series 2001B
2001
2003 -2017
4.0% to 4.9%
1,140,000
1,100,000
Storm Water Rev Refunding Bonds, Series
'
2001 D
2001
2003 -2008
2.5% to 4.0%
805,000
685,000
Storm Water Revenue Bonds, Series 2002B
2002
2004 -2018
3.0% to 4.6%
1,195,000
1,195,000
Storm Water Bonds, Series 2003B
2003
2005 -2014
1.2% to 3.4%
1,170,000
1,170,000
'
Total Business -Type Activities General
Obligation
Debt
$ 7,075,000
J
Page 45 1
' CITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2003
' NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG -TERM OBLIGATIONS (cont.)
General Ob ligation Debt (cont.)
Debt service requirements to maturity are as follows:
Governmental Activities Business -Type Activities
General Obligation Debt General Obligation Debt
' Years Principal Interest Principal Interest
2004 $ 2,200,000 $ 590,124 $ 600,000 $ 290,296
2005 2,455,000 501,957 735,000 261,223
2006 2,255,000 414,384 565,000 237,393
2007 1,770,000 338,397 585,000 216,444
' 2008 1,775,000 268,895 605,000 193,883
2009-2013 4,410,000 526,893 2,495,000 637,826
2014-2018 580,000 38,483 1,490,000 153,040
' Totals $ 15,445,000 $ 2,679,133 $ 7,075,000 $ 1,990,105
Other Debt Information
Estimated payments of compensated absences are not included in the debt service requirement
schedules. The compensated absences liability attributable to governmental activities will be
liquidated primarily by the general fund.
There are a number of limitations and restrictions contained in the various bond indentures and
' loan agreements. The City believes it is in compliance with all significant limitations and
restrictions, including federal arbitrage regulations.
Defeasance of Debt
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, 2003, $5,315,000 of bonds
outstanding are considered defeased. The bonds are callable on February 1 of 2004, 2005 and
' 2006.
' Page 46
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS
December 31, 2003 '
NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.)
F. LEASE DISCLOSURES
Lessee — Capital Leases
The City has entered into various lease - purchase agreements to facilitate the acquisition of
certain fixed assets. The gross amount of fixed assets under capital leases is $1,797,702, and is
included in the governmental activities. The future minimum lease obligations and the net
present value on these minimum lease payments as of December 31, 2003, are as follows:
Governmental
Activities
2004
$ 230,961
2005
247,541
2006
196,824
2007
131,927
2008
131,927
2009-2013
362,621
Sub- Total
1,301,801
Less: Amount representing interest
(211,757
Present Value of Minimum Lease Payments
$ 1,090,044
G. NET ASSETS /FUND BALANCES
Net assets reported on the government -wide statement of net assets at December 31, 2003
includes the following:
Governmental Activities
Invested in capital assets, net of related debt
Construction in progress
$ 6,185,960
Land
2,572,484
Other capital assets, net of accumulated depreciation
27,050,047
Less: related long -term debt outstanding (excluding unspent
capital related debt proceeds)
(16,535,044
Total Invested in Capital Assets
19,273,447
Unrestricted
21,839,805
Total Governmental Activities Net Assets
$ 41,113,252
Page 47
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
'
NOTE IV — DETAILED NOTES ON ALL FUNDS (co
G. NETASSETS /FUND BALANCES (cont.)
'
Governmental Activities
(cont.)
Governmental fund balances reported on the fund financial statements at December 31, 2003
include the following:
'
Reserved
Major Funds
General Fund
Prepaid items
$
27,979
'
Encumbrances
147,339
Total
$
175,318
General Debt Service Fund
Reserved for debt service
$ 7,563,183
Total Major Funds Reserved
$ 7,738,501
Non -Major Funds
Building CIP Fund
Reserved for encumbrances
$
935,001
Street CIP Fund
Reserved for encumbrances
48,000
Equipment CIP Fund
Reserved for encumbrances
145,711
'
Total Non -Major Funds Reserved
$
1,128,712
Unreserved, undesignated (deficit)
Major Funds
'
General fund
$
12,821
Non -Major Funds
'
Special Revenue Funds
Building CIP fund
$
(97,969)
Great River Energy project fund
(297
Total
$
(98,26
Total Unreserved, undesignated (deficit)
$
(85,445
'
Page 48
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS
December 31, 2003 '
NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) '
G. NET ASSETS /FUND BALANCES (cont.)
Governmental Activities (cont.)
Unreserved, designated
Major Funds
'
General fund
Designated for working capital $ 4,713,147
Designated for compensated absences 476,573
'
Deduction to available funds (664,712
Total 4,525,008
General Capital Projects Fund
Designated for capital projects 2,507,528
,
Total Major Funds — Unreserved, designated $ 7,032,536
'
Non-Major Funds
Special Revenue Funds
Street CIP fund $ 921,358
'
Equipment fund 455,163
Mississippi River fund 6,949
Park improvements fund 224,104
'
Tree disease grant program fund 147
Crime reduction project fund 3,200
Fire safety education fund 8,467
GIS fund 47,501
1
Total Non -Major Funds — Unreserved, designated $1,666,889
H. COMPONENT UNIT
This report contains the City's Port Authority which is included as a component unit. Financial
'
information is presented as a discrete column in the statement of net assets and statement of
activities.
In addition to the basic financial statements and the preceding notes to financial statements
'
which apply, the following additional disclosures are considered necessary for fair presentation.
a. Basis of Accounting /Measurement Focus
'
The Port Authority prepares their financial statements in accordance with the modified
accrual basis of accounting. The measurement focus of the Port Authority is the flow of
,
current financial resources concept. Under this concept, sources and uses of financial
resources, including capital outlays, debt proceeds and debt retirements are reflected in
operations. Resources not available to finance expenditures and commitments of the
current period are recognized as deferred revenue or a reservation of fund equity.
'
Page 49
,
NOTE IV — DETAILED NOTES ON ALL FUNDS (cunt.)
H. COMPONENT UNIT (cont.)
b. Deposits and Investments
At year end, the carrying amount of the Authority's deposits was $120,066. Of the bank
balance, $100,000 was covered by federal depository insurance or by collateral held by
the Authority or its agent in the Authority's name. The Authority's investments are
categorized in the following categories based on the descriptions used in Note IV. A.
Carrying
Risk Category Amount/
1 2 3 Totals Fair Value
U.S. Government Securities 3,120,000 $ - $ - $ 3,120,000 $ 3,120,000
C. Capital Assets
Beginning Ending Useful
Balance Additions Deletions Balance Lives (Years)
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Capital Assets Not
Being Depreciated:
*Land $ 440,041 $ - $ - $ 440,041
Capital Assets Being
Depreciated:
Equipment
Less: Accumulated
Depreciation for:
Equipment
Net Other Capital
$ 18,620 $ - $
5,321 931
- $ 18,620
6,252
Assets $ 13,299 $ 931 $ - $ 12,368
*Land was adjusted to agree to subsidiary journal.
N/A
4 -20
Page 50
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS
December 31, 2003 '
NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.)
H. COMPONENT UNIT (cont.)
d. Long -Term Obligations
'
The Port Authority issues debt, which is backed by the full faith and credit of the City.
The Port Authority issues bonds and certificates of indebtedness to provide funds for the
'
acquisition and construction of major capital facilities.
Beginning
Ending
'
Balance Increases Decreases Balance
Municipal Building Series 1992E
$ 2,425,000 $
- $ 2,425,000 $
Port Authority Series 1993E
345,000
- 345,000 -
Port Authority Series 1994A
1,125,000
- 1,125,000 -
Municipal Bldg Refunding, Series 1998A
2,405,000
- - 2,405,000
Port Authority, Series 2000B
1,640,000
- 150,000 1,490,000
Public Facilities Bonds, Series 2001C
2,045,000
- 25,000 2,020,000
Port Authority, Series 2002C
1,795,000
- - 1,795,000
Total
$11,780,000 $
- $ 4,070,000 $ 7,710,000
Debt service requirements to maturity
are as follows:
'
Principal
Interest Totals
2004
$ 560,000
$ 331,603 $ 891,603
'
2005
580,000
311,220 891,220
2006
2007
585,000
615,000
288,995 873,995
265,456 880,456
'
2008
635,000
239,879 874,879
2009-2013
2,710,000
811,414 3,521,414
2014-2018
1,435,000
345,429 1,780,429
2019-2022
590,000
75,480 665,480
'
Totals
$ 7,710,000
$ 2,669,476 $ 10,379,476
Page 51
'
0
ri
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.)
H. COMPONENT UNIT (cont.)
e. Public Employees Retirement System
All eligible Port Authority employees participate in the pension plans administered by the
Public Employees Retirement Association of Minnesota (PERA). In accordance with GASB
Statement No. 27, the PERA plans are classified as multiple - employer, cost - sharing plans.
The payroll for employees covered by PERA for the year ended December 31, 2003 was
$3,080; the Port Authority's total payroll was $3,080.
The total required contribution for the year ended December 31, 2003 was $70. Of this
amount, 100 percent was contributed by the employer for the current year. Total
contributions for the years ending December 31, 2003 and 2002 were $70 and $40,
respectively, equal to the required contributions for each year.
See Note V for a detailed description of the plan.
f. Reserved /Designated Net Assets /Fund Balance
Fund balances reported on the fund financial statements at December 31, 2003 include
the following:
Reserved
General Fund
Reserved for prepaid items $ 450
General Debt Service Fund
Reserved for debt service 1,997,051
Total $ 1,997,501
Unreserved
General Fund $ 640,690
General Debt Service Fund 463,103
Total $ 1,103,793
Page 52
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE V - OTHER INFORMATION
A. PENSION PLANS
City employees and firefighters participate in the pension plans administered by the Public
Employees Retirement Association of Minnesota (PERA) and the Rosemount Volunteer Fire
Relief Association. In accordance with GASB Statement No. 27, the PERA plans are classified
as multiple - employer, cost- sharing plans, and the Association's plan is classified as a single -
employer plan.
1. Public Employees Retirement Association
a. Plan Description
All full -time and certain part -time employees of the City of Rosemount, Minnesota
are covered by defined benefit plans administered by the Public Employees
Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF) which are cost - sharing, multiple - employer retirement plans. These
plans are established and administered in accordance with Minnesota Statues,
Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated Plan members are covered by Social Security and Basic Plan
members are not. All new members must participate in the Coordinated Plan. All
police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and
benefits to survivors upon death of eligible members. Benefits are established by
State Statute, and vest after three years of credited service. The defined
retirement benefits are based on a member's highest average salary for any five
successive years of allowable service, age, and years of credit at termination of
service.
Two methods are used to compute benefits for PERF's Coordinated and Basic
Plan members. The retiring member receives the higher of a step -rate benefit
accrual formula (Method 1) or a level accrual formula (Method 2). Under Method
1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average
salary for each of the first 10 years of service and 2.7 percent for each remaining
year. The annuity accrual rate for Coordinated Plan member is 1.2 percent of
average salary for each of the first 10 years and 1.7 percent for each remaining
year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary
for Basic Plan members and 1.7 percent for Coordinated Plan members for each
year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for
each year of service. For all PEPFF members and for PERF members whose
annuity is calculated using Method 1, a full annuity is available when age plus
years of service equal 90. A reduced retirement annuity is also available to
eligible members seeking early retirement.
Page 53
0
' CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE V — OTHER INFORMATION (cont.)
A. PENSION PLANS (cunt.)
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
t begin.
The benefit provisions stated in the previous paragraphs of this section are
current provisions and apply to active plan participants. Vested, terminated
employees who are entitled to benefits but are not receiving them yet are bound
by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial
statements and required supplementary information for PERF and PEPFF. That
report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul,
Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026.
b. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. These statutes are established and amended by the state
legislature. The City makes annual contributions to the pension plans equal to the
amount required by state statutes. PERF Basic Plan members and Coordinated
Plan members are required to contribute 9.10% and 5.10 %, respectively, of their
annual covered salary. PEPFF members are required to contribute 6.20% of their
annual covered salary. The City of Rosemount is required to contribute the
following percentages of annual covered payroll: 11.78% for Basic Plan PERF
members, 5.53% for Coordinated Plan PERF members, and 9.30% for PEPFF
members. The City's contributions to the Public Employees Retirement Fund for
' the years ending December 31, 2003, 2002, and 2001 were $151,312, $138,316,
and $117,830, respectively. The City's contributions to the Public Employees
Police & Fire Fund for the years ending December 31, 2003, 2002, and 2001
were $106,388, $95,598, and $89,520, respectively. The City's contributions were
equal to the contractually required contributions for each year as set by state
statute.
I Page 54
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE V — OTHER INFORMATION (cont.)
A. PENSION PLANS (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 $3,000 per year of
service. In the event an otherwise qualified member has less than 20 years of
service, the member is eligible for a pension payment of 40 percent after 5 years
of service, increasing 4 percent for each year of service after 5 years to a '
maximum of 100 percent. Members retiring before 50 do not receive distributions
until age 50, but interest at 5% per year is added to their retirement benefit until
paid. ,
c. Annual Pension Cost and Net Pension Obligations
Financial requirements of the Association are determined based on a formula '
prescribed in Minnesota Statues 69.772. Those statutes prescribe a set amount
of funding, per $100 of lump -sum benefits payable per year of service. For
associations with assets exceeding the statutory pension liability, the financial '
requirements shall be the increase in the statutory pension liability for the next
year over the current year, reduced by an amount equal to one -tenth of the
surplus. For associations with a deficit of assets to fund the statutory pension
liability, the financial requirements shall be the increase in the statutory pension
liability for the next year over the current year, increased by an amount equal to
one -tenth the deficit. The City's minimum obligation is the financial requirement
for the year less anticipated state aids and interest on investments calculated at '
a rate of 5 percent. The actuarial value of assets was determined using fair value.
Page 55 1
0
i CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE V — OTHER INFORMATION (cont.)
A. PENSION PLANS (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 N/A
Inflation rate N/A
Investment return NIA
Projected salary increases N/A
Postretirement benefit increases N/A
' Amortization method N/A
Amortization period N/A
" Items are not available because no actuarial valuation was required by
Minnesota statutes.
The annual pension cost for the Rosemount Fire Department Relief Association
Pension Plan for the year ended December 31, 2003 were as follows:
Amount
State of Minnesota contribution $ 79,949
City of Rosemount contribution 135,000
$ 214,949
Three Year Trend Information
Fiscal Year Ending Annual Pension Percentage of APC Net Pension
Cost Contribution Obligation
(APC)
2003 $ 214,949 100.0 % $ 0
' 2002 198,378 100.0 0
2001 80,303 100.0 0
A formal actuarial valuation is not required by Minnesota Statutes because the
pension benefit is a lump -sum distribution. The formula used to compute pension
contributions requirements is substantially the same as that used to determine
the standardized measure of the net pension obligation. The computation of the
pension contribution requirements for 2003 was based on the same formula,
funding method and other factors used to determine pension contributions
requirements in previous years.
' Page 56
C
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE V — OTHER INFORMATION (cont.)
A. PENSION PLANS (cunt.)
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,
2003. 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, 2003.
Assets as a
Overfunded
Aggregate
Percentage
(Underfunded)
Valuation
Valuation
Accrued
of Accrued
Accrued
Date
Assets
Liabilities
Liabilities
Liabilities
12 -31 -03
1,495,875
1,440,686
104
55,189
12 -31 -02
1,166,341
1,302,563
90
(136,222)
12 -31 -01
1,002,211
906,561
111
95,650
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, 2003 and for the year then ended, the Association held no
securities issued by City or other related parties.
B. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of
assets; errors and omissions; workers compensation; and health care of its employees. The City
purchases commercial insurance and participates in a public entity risk pool called the
Minnesota League of Cities Insurance Trust to provide coverage for these various risks of loss.
Settlements have not exceeded coverages for each of the past fiscal years.
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, 2003, 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 57
85 a6ed
*40 91 41
jo s;lnsai 6ullejado ajn}nl eqj uo ;oedwl ;ueoll!u61s a aneq pinoo swei6oid ple leool } o Al!l!q!
ao 6ulpunj of ajejS eqj Aq spew s96ueg3 AUV 'S;UawuaanO6 leoOl 01 p!e 6ulonpaa 6ulpnioul
Sanlleuialle snoiewnu 6uuap!suoo s! pue `swelgald lebpnq buloualjadxe Alluanno sl ejosauulW
jo aje ;S aql 'sessaoad 196pnq jlagl g6nojgl `ain;elsl6al pue jOujano6 a}OSauulW aq; Aq 6ulpunj
pue leno.idde penulluoo uo luepuedep aie swei6oid jueA pue p!e esogl -Aj!o eqj I!Iaueq golgm
swei6oid jumb pue ple 10 A19lJen a Sapinald e;osauullN }o aje ;S aql 'senuanaa snoauellaoslw
iagjo pue `sl!wjad pue scull `seal aasn ` }U9wUJOAo6 jo spun iagjo wal sple pue s;uea6
`saxel Aliedoid 6ulpnloul saoinos Auew wojl sawoo A3!o eqj jo 196pnq 6ullejado eqj col 6ulpund
'lelia;ewwl eq pinom `Aue }! `seouemolleslp gons
sanalleq juawa6euelN 's;uej6 eqj jo swia; japun pamolleslp sajn;lpuedxa jol Aoue6e joluej6
eq} o; sluawasingwlaj jol s;senbai of peal pinoo sj!pne gons 'saloua6e jojuej6 eqj Aq Ilpne pue
nnalnaJ of joefgns aje 1egj sasodind o!d!oads jol s;uej6 alels pue leJapaj paniaoaJ seq Aj!O aql
'suoijejado jo sllnsai jo uolj!sod leloueull S,Al!o ag} UO 109119 aSJanpe leuajew
e aneq ll!M S6Ulp9930id jo swlelo gons Aue ;eqj a}owei sl poog!laM 941 ;eqj juawa6euew
jo uoluldo ag; sl 1! `Alulelaao qj!M pa}seoaaoj aq }ouueo siallew gons jo awoolno eqj
g6noq;ly 's6ulpaaoa►d le6el pue swlelo 6ulpued snolaen o} Alied sl A}!o aq; `awl; 01 owll woj l
S31ON30N►1NOO ONV S1N3N1►NNOO '3
('}UOO) NOIIVWMOdNl H3H1O — A 310N
£OOZ ` 6E jagweoaQ
S1N3lN31d1S IVIONVNl3 Ol S310N
1Nnow3sou :jO Ain
THIS PAGE INTENTIONALLY LEFT BLANK
n
CITY OF ROSEMOUNT
I Page 59
GENERALFUND
SCHEDULE OF REVENUES COMPARED TO BUDGET (BUDGETARY BASIS) - BUDGET AND ACTUAL
For the Year Ended December 31, 2003
'
Variance with
Final Budget -
Budgeted Amounts
Positive
'
REVENUES
Original
Final
Actual
(Negative)
TAXES
General property tax
$ 4,233,171 $
4,146,975
$ 4,080,670
$ (66,305)
Fiscal disparities
771,998
771,998
771,998
-
Other
239,000
148,000
208,410
60,410
Total Taxes
5,244,169
5,066,973
5,061,078
(5,895)
INTERGOVERNMENTAL REVENUES
Local government aid (LGA)
402,142
-
-
-
State aid - police
93,000
93,000
102,805
9,805
State aid - general government
12,889
12,889
16,353
3,464
State aid - highway
29,000
29,000
29,445
445
Other
58,200
58,200
65,633
7,433
Total Intergovernmental Revenues
595,231
193,089
214,236
21,147
'
PUBLIC CHARGES FOR SERVICES
General government
483,200
617,450
752,694
135,244
Public safety
51,200
51,200
40,829
(10,371)
Highways and streets
2,000
2,000
38,073
36,073
Parks and recreation
208,800
208,800
247,284
38,484
SAC
3,000
3,000
5,303
2,303
Total Charges for Services
748,200
882,450
1,084,183
201,733
LICENSES AND PERMITS
Business
21,500
21,500
20,560
(940)
Non - business
494,700
642,988
895,029
252,041
Total Licenses and Permits
516,200
664,488
915,589
251,101
FINES AND FORFEITURES
County
90,000
90,000
89,752
(248)
SPECIAL ASSESSMENTS
-
-
23,738
23,738
INVESTMENT INCOME AND MISCELLANEOUS
Investment income
131,000
131,000
102,417
(28,583)
Net increase in the fair value of investments
6,431
6,431
Miscellaneous general revenues
5,000
5,000
1,570
(3,430)
Donations
-
77,884
77,884
-
'
Rents
4,800
4,800
4,394
(406)
Total Investment income and miscellaneous
140,800
218,684
192,696
(25,988)
Total Revenues
OTHER FINANCING SOURCES
Sales of capital assets
-
-
2,435
2,435
Operating transfers in
3,500
3,500
3,500
-
Total Other Financing Sources
3,500
3,500
5,935
2,435
1
Total Revenues and Other Financing Sources
$ 7,338,100 $
7,119,184
$ 7,587,207
$ 468,023
I Page 59
CITY OF ROSEMOUNT '
GENERALFUND
SCHEDULE OF EXPENDITURES AND OTHER USES (BUDGETARY BASIS) - BUDGET AND ACTUAL '
For the Year Ended December 31, 2003
CURRENT EXPENDITURES
GENERAL GOVERNMENT
Mayor and council
Executive
Elections
Finance
Community development
General government
TOTAL GENERAL GOVERNMENT
PUBLIC SAFETY
Police department
Fire department
TOTAL PUBLIC SAFETY
PUBLIC WORKS
Government building maintenance
Fleet maintenance
Street maintenance
Park maintenance
TOTAL PUBLIC WORKS
PARKS AND RECREATION
OTHER FINANCING USES
TOTAL EXPENDITURES
Beginning of year budget basis encumbrances
End of year budget basis encumbrances
GAAP basis expenditures and other financing uses
Variance with
'
Final Budget -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
'
$ 93,500 $
102,500
$ 98,316
$ 4,184
341,000
311,700
287,823
23,877
'
10,000
-
-
-
271,200
269,700
255,914
13,786
784,500
728,000
669,971
58,029
370,000
335,000
278,329
56,671
,
1,870,200
1,746,900
1,590,353
156,547
1,932,500
1,931,262
1,815,618
115,644
265,500
265,500
255,835
9,665
'
2,198,000
2,196,762
2,071,453
125,309
,
321,800
318,200
315,449
2,751
413,100
405,100
369,629
35,471
1,142,200
457,600
1,101,500
410,000
1,049,810
354,072
51,690
55,928
,
2,334,700
2,234,800
2,088,960
145,840
935,200
940,722
907,100
33,622
508,837
1,422,837
(914,000)
$ 7,338,100 $
7,628,021
8,080,703
$ (452,682)
67,352
,
(147,339)
$ 8,000,716
r
Page 60
'
� F
CITY OF ROSEMOUNT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2003
Budgetary Information
Budgetary information is derived from the annual operating budget and is presented using
generally accepted accounting principles and the modified accrual basis of accounting with
departures from GAAP for encumbrances.
1
1
1
1
Page 61
CITY OF ROSEMOUNT
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
December 31, 2003
Special Revenue Funds
Page 62
Mississippi
Building
Street
Equipment
River
CIP
CIP
CIP
Grant
ASSETS
Cash and investments
$
1,086,143
$
951,185
$
600,874
$
6,949
Receivables:
Accounts
-
18,018
-
-
Special assessments
-
63,355
-
-
Delinquent special assessments
-
5,869
-
-
Total assets
$
1,086,143
$
1,038,427
$
600,874
$
6,949
LIABILITIES
Accounts payable
$
-
$
-
$
-
$
-
Deferred revenue
-
69,069
-
-
Advances from other funds
249,111
-
-
-
Total liabilities
249,111
69,069
-
-
FUND BALANCES
Reserved for encumbrances
935,001
48,000
145,711
-
Unreserved
Designated
921,358
455,163
6,949
Undesignated
(97,969)
-
-
-
Total fund balances
837,032
969,358
600,874
6,949
Total liabilities and fund balances
$
1,086,143
$
1,038,427
$
600,874
$
6,949
Page 62
Page 63
Special Revenue Funds
Total
Tree Disease
Great River
Crime
Fire
Nonmajor
Park
Grant
Energy
Reduction
Safety
Governmental
I mprovements
Program
Project
Project
Education
GIS
Funds
$
260,624
$ 147
$ (297)
$ 3,200
$
8,467
$
47,501
$ 2,964,793
-
-
-
-
-
-
18,018
-
-
-
-
-
-
63,355
-
-
-
-
-
-
5,869
$
260,624
$ 147
$ (297 )
$ 3,200
$
8,467
$
47,501
$ 3,052,035
$
36,520
$ -
$ -
$ -
$
-
$
-
$ 36,520
-
-
-
-
-
-
69,069
-
-
-
-
-
-
249,111
36,520
-
-
-
-
-
354,700
-
-
-
-
-
-
1,128,712
224,104
147
3,200
8,467
47,501
1,666,889
-
-
(297)
-
-
-
(98,266)
224,104
147
(297)
3,200
8,467
47,501
2,697,335
$
260,624
$ 147
$ (297)
$ 3,200
$
8,467
$
47,501
$ 3,052,035
Page 63
CITY OF ROSEMOUNT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2003
Special Revenue Funds
Mississippi
Building Street Equipment River
CIP CIP CIP Grant
REVENUES
Taxes
$ 24,000
$ 160,000
$ 721,100 $
-
Intergovernmental
-
2,380
-
-
Public charges for services
-
157,367
-
-
Special assessments
-
15,307
-
-
Investment income and miscellaneous
2,992
17,156
4,953
45
Total Revenues
26,992
352,210
726,053
45
EXPENDITURES
Current:
General government
2,500
2,500
2,500
-
Public safety
-
-
-
-
Public works
-
34,693
-
-
Conservation and development
-
-
-
-
Capital outlay
82,400
114,510
744,564
-
Debt Service:
Principal retirement
13,005
-
167,943
-
Interest and fiscal charges
-
-
63,018
-
Total Expenditures
97,905
151,703
978,025
-
Excess (deficiency) of revenues over
(under) expenditures
(70,913)
200,507
(251,972)
45
OTHER FINANCING SOURCES (USES)
Sale of capital assets
-
-
34,078
-
Capital leases
-
-
74,257
-
Transfers in:
General fund
914,000
132,029
-
-
Arena fund
-
-
10,958
-
Transfers out:
Capital projects fund
-
(164,933)
-
-
Total Other Financing Sources (Uses)
914,000
(32,904)
119,293
-
Excess (deficiency) of revenues and other
sources over expenditures and other uses
843,087
167,603
(132,679)
45
FUND BALANCES (DEFICIT) - Beginning
of Year
(6,055)
801,755
733,553
6,904
FUND BALANCES (DEFICIT) -
END OF YEAR
$ 837,032
$ 969,358
$ 600,874 $
6,949
Page 64
Page 65
Special Revenue Funds
'
Tree Disease
Great River
Nonmajor
Park
Grant
Energy
Crime
Fire
Governmental
'
I mprovement s
Program
Project
Reduction
Safety
GIS
Funds
$ -
$ -
$ -
$ -
$ -
$ -
$ 905,100
2,380
108,698
28,672
294,737
-
-
-
-
-
-
15,307
7,377
1
36
645
496
33,701
'
116,075
1
=
36
645
29,168
1,251,225
_
_
_
7,500
_
-
-
6,443
-
-
6,443
_
-
32,736
67,429
-
-
297
-
-
-
297
632,436
-
-
-
-
1,758
1,575,668
'
_
_
-
-
-
-
180,948
-
-
-
-
-
-
63,018
'
632,436
-
297
6,443
-
34,494
1,901,303
'
(516,361)
1
(297)
(6,407)
645
(5,326)
(650,078)
_
-
-
-
-
1,000
-
35,078
74,257
_
-
1,046,029
_
-
10,958
-
-
-
-
-
-
(164,933)
'
-
1,000
1,001,389
(516,361)
1
(297)
(6,407)
645
(4,326)
351,311
740,465
146
-
9,607
7,822
51,827
2,346,024
$ 224,104
$ 147
$ (297)
$ 3,200
$ 8,467
$ 47,501
$ 2,697,335
Page 65
CITY OF ROSEMOUNT ,
BUILDING CIP SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES ,
IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2003
REVENUES
Taxes
Investment income
Total Revenues
EXPENDITURES
Current:
General government
Capital outlay
Debt service:
Principal repayment on advance
Interest on advance
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Net Change in Fund Balance
FUND BALANCE (DEFICIT) - Beginning
FUND BALANCE - ENDING
Variance with
Original and
Final Budget -
'
Final Budgeted
Positive
Amounts
Actual
(Negative)
$ 24,000
$ 24,000
$ -
'
3,000
2,992
(8)
27,000
26,992
(8)
'
2,500
2,500
-
82,400
(82,400)
-
'
11,000
11,000
13,000
13,005
(5)
26,500
97,905
,
(71,405)
'
500
(70,913)
(71,413)
914,000
-
914,000
500
843,087
842,587
'
-
(6,055)
6,055
$ 500
'
$ 837,032
$ 848,642
Page 66
,
CITY OF ROSEMOUNT
STREET CIP SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2003
REVENUES
Taxes
Intergovernmental
Charges for services
Special assessments
Investment income
Total Revenues
EXPENDITURES
Current:
General government
Public works
Capital outlay
Total Expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCE - Beginning
FUND BALANCE - ENDING
2,500
2,500
2,500
Variance with
143,142
-
34,693
Final Budget -
Budgeted Amounts
320,000
Positive
Original
Final
Actual
(Negative)
$ 303,142 $
160,000 $
160,000
$ -
-
-
2,380
2,380
130,000
130,000
157,367
27,367
17,000
17,000
15,307
(1,693)
20,200
20,200
17,156
(3,044)
470,342
327,200
352,210
25,010
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCE - Beginning
FUND BALANCE - ENDING
2,500
2,500
2,500
-
143,142
-
34,693
(34,693)
320,000
320,000
114,510
205,490
465,642
322,500
151,703
170,797
4,700
4,700
200,507
195,807
- - 132,029
- (164,933)
- - (32,904)
4,700 4,700 167,603
- - 801,755
$ 4,700 $ 4,700 $ 969,358
132,029
(164,933)
(32,904)
162,903
(801,755)
$ (638,852)
Page 67
CITY OF ROSEMOUNT
EQUIPMENT CIP SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2003
REVENUES
Taxes
Investment income
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES
Sale of capital assets
Capital leases
Operating transfers in
Total Other Financing Sources
Net Change in Fund Balance
FUND BALANCE - Beginning
FUND BALANCE - ENDING
Budgeted Amounts
Original Final _
$ 751,100 $ 721,100 $
4,900 4,900
Variance with
Final Budget -
Positive
Actual (Negative)
721,100 $ -
4,644 (256)
756,000
726,000
726,053
53
2,500
2,500
2,500
-
520,000
490,000
744,564
(254,564)
168,100
168,100
167,943
157
63,000
63,000
63,018
(18)
753,600
723,600
978,025
(254,425)
2,400 2,400 (251,972) (254,372)
34,078 34,078
- - 74,257 74,257
- - 10,958 10,958
- - 119,293 119,293
2,400 2,400 (132,679) (135,079)
- - 733,553 (733,553)
$ 2,400 $ 2,400 $ 600,874 $ (868,632)
Page 68
C
C�
u
r
C
L
CITY OF ROSEMOUNT
BALANCE SHEET
COMPONENT UNIT - PORT AUTHORITY
December 31, 2003
Special Total
General Revenue Debt Service Governmental
Fund Fund Fund Funds
ASSETS
Cash and investments $ 669,524 $ 575,814 $ 1,997,051 $ 3,242,389
Receivables
Notes
Special assessments
Prepaid items
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Deferred revenues
Other liabilities
Total Liabilities
Fund Balances
618,431 - - 618,431
- - 175,782 175,782
450 - - 450
$ 1,288,405 $ 575,814 $ 2,172,833 $ 4,037,052
$ 28,084 $ 112,711 $ $ 140,795
618,431 - 175,782 794,213
750 - 750
647,265 112,711 175,782 935,758
Reserved 450 -
1,997,051 1,997,501
Unreserved, undesignated 640,690 463,103
- 1,103,793
Total Fund Balances 641,140 463,103
1,997,051 3,101,294
TOTAL LIABILITIES AND FUND BALANCES $ 1,288,405 $ 575,814
$ 2,172,833
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the fund statements.
Capital assets consists of:
Capital assets
$ 458,661
Accumulated depreciation
(6,252) 452,409
Special assessments, TID interest, and loan receivables are reported as deferred revenue in the
fund financial statements but are recognized as revenue when earned in the government -wide
statements.
These type of deferred revenues at year end consist of:
Notes receivable
618,431
Special assessments
175,782 794,213
Some liabilities, including long -term debt, are not due and payable in the current period and
therefore are not reported in the funds.
Long -term liabilities at year end consist of:
General obligation debt
7,710,000
Accrued interest on general obligation debt
140,741 (7,850,741)
NET ASSETS OF GOVERNMENTAL FUNDS
$ (3,502,825)
Page 69
CITY OF ROSEMOUNT
,
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -
GOVERNMENTAL FUNDS
COMPONENT UNIT - PORT AUTHORITY
,
For the Year Ended December
31, 2003
,
Special
Total
General
Revenue
Debt Service
Governmental
Fund
Fund
Fund
Funds
REVENUES
'
Taxes
$ -
$ 249,721
$ 1,038,531
$ 1,288,252
Intergovernmental
13,402
1,000
-
14,402
Investment income
5,288
-
-
5,288
Miscellaneous
459,074
12,330
156,739
628,143
Total Revenues
477,764
263,051
1 ,195,270
1,936,085
EXPENDITURES
'
Current
General government
12,422
-
-
12,422
Conservation and development
102,489
4,424
1,000
107,913
Capital outlay
-
861,927
-
861,927
'
Debt service:
Principal retirement
-
-
4,070,000
4,070,000
Interest and fiscal charges
-
-
468,900
468,900
Total Expenditures
114,911
866,351
4,539,900
5,521,162
'
Excess (deficiency) of revenues
over (under) expenditures
362,853
(603,300)
(3,344,630)
(3,585,077)
'
OTHER FINANCING SOURCES (USES)
Transfer in
-
-
218,682
218,682
Transfer out
-
(218,682)
-
(218,682)
'
Total Other Financing Sources (Uses)
-
(218,682)
218,682
-
Excess (deficiency) of revenues and other
sources over (under) expenditures and other uses 362,853
(821,982)
(3,125,948)
(3,585,077)
FUND BALANCES - Beginning of Year
AS RESTATED
278,287
1,285,085
5,122,999
6,686,371
FUND BALANCES - END OF YEAR
$ 641,140
$ 463,103
$ 1,997,051
$ 3,101,294
Page 70
1
1 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, 2003
Net change in fund balances - total governmental funds
$ (3,585,077)
Amounts reported for governmental activities in the statement of activities
p
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their
'
estimated useful lives and reported as depreciation expense. The following
differ in their presentation in the two statements:
Depreciation is reported in the government -wide statements
(931)
Special assessments are reported as deferred revenue in the fund financial statements
but are recognized as revenue when earned in the government -wide financial statements
This is the amount of special assessment recognized as revenue on the fund statement
and was recognized in the government -wide statement in the prior years.
(451,741)
'
Debt proceeds provide current financial resources to governmental funds,
but issuing debt increases long -term liabilities in the statement of net
assets. 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.
4,070,000
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 amount is the change in the accrued interest on debt.
107,835
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
$ 140,086
C
I Page 71
CITY OF ROSEMOUNT
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS -
SCHEDULE - BY SOURCE'
,
December 31, 2003
GOVERNMENTAL FUNDS CAPITAL ASSETS:
Land
Land improvements
$ 2,572,484
936,547
Buildings
9,910,906
Machinery and equipment
4,068,551
Licensed vehicles
2,651,285
'
Infrastructure
20,617,774
Construction in progress
6,185,960
TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS
$ 46,943,507
,
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE:
General fund and capital projects fund sources
$ 46,943,507
,
'This schedule presents only the capital asset balances related to governmental funds.
Page 72
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
TABLE 1
CITY OF ROSEMOUNT
GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY FUNCTION
YEARS 1994 THROUGH 2003
(UNAUDITED)
General
Public
Public
Park and
Government
Safety
Works
Recreation
Transfers
Total
1,090,407
$ 1,086,553
$ 1,045,093
$ 550,954
$ 444,669 $
4,217,676
1,074,859
1,211,425
1,236,215
628,270
208,399
4,359,168
1,041,383
1,292,439
1,495,630
549,173
117,950
4,496,575
1,000,732
1,395,627
1,406,359
572,489
130,400
4,505,607
1,227,524
1,442,652
1,450,156
601,450
-
4,721,782
1,132,331
1,496,445
1,638,278
628,145
-
4,895,199
1,142,410
1,579,038
1,887,570
691,126
192,000
5,492,144
1,363,241
1,710,016
1,696,322
751,673
897,834
6,419,086
1,526,727
1,884,975
1,801,461
785,226
-
5,998,389
1,597,819
2,085,001
1,987,960
907,100
1,422,836
8,000,716
Page 73
TABLE 2
CITY OF ROSEMOUNT
GENERAL FUND REVENUES AND OTHER FINANCING SOURCES BY SOURCE
YEARS 1994 THROUGH 2003
(UNAUDITED)
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Licenses Charges Fines
and Inter for and Recreational
Taxes Permits Governmental Services Forfeitures Fees
$ 1,878,109
$ 302,859 $
1,079,660
$ 372,318
$ 100,074 $
2,305,352
262,946
1,097,460
401,211
139,680
2,476,676
239,129
1,119,492
314,049
111,929
2,468,582
259,012
1,240,069
480,657
113,972
2,693,105
363,238
1,274,373
351,650
72,084
2,626,864
623,463
1,318,132
486,379
91,441
2,916,269
588,304
1,457,390
713,892
72,067
3,188,409
790,396
1,185,590
700,702
88,524
4,556,291
797,688
666,057
702,775
85,835
5,061,078
915,589
214,236
860,637
89,752
Other Transfers Total
37,298 $ 251,596 $ 287,495 $ 4,309,409
177,076
149,585
3,500
4,536,810
173,794
151,230
3,500
4,589,799
196,002
99,687
3,500
4,861,481
201,352
156,216
3,500
5,115,518
207,578
117,798
3,500
5,475,155
224,033
240,653
3,500
6,216,108
222,921
268,625
3,500
6,448,667
231,287
268,377
114,800
7,423,110
247,284
195,131
3,500
7,587,207
Page 74
TABLE 3
CITY OF ROSEMOUNT
PROPERTY TAX LEVIES AND COLLECTIONS
YEARS 1994 THROUGH 2003
(UNAUDITED)
(1) The total tax levy differs from actual levy certified to the County by the City because of fiscal disparity calculations done by the County after certification.
Page 75
Ratio of
Ratio of
Percent of
Delinquent
Total
Total Tax
Outstanding
Delinquent
Total Tax
Current Tax
Current Taxes
Tax
Tax
Collections to
Delinquent
Taxes to Total
Year
Levy (1)
Collections
Collected
Collections
Collections
Total Tax Levy
Taxes
Tax Levy
1994
$ 2,665,947
$ 2,583,215
96.90%
$ 46,583
$ 2,629,798
98.64%
$ 36,149
1.36%
1995
3,223,399
3,148,466
97.68%
58,543
3,207,009
99.49%
16,390
0.51%
1996
4,156,729
4,121,688
99.16%
10,986
4,132,674
99.42%
24,055
0.58%
1997
4,390,586
4,322,160
98.44%
28,133
4,350,293
99.08%
40,293
0.92%
1998
4,862,364
4,840,871
99.56%
59,904
4,900,775
100.79%
(38,411)
-0.79%
1999
4,864,604
4,829,675
99.28%
35,282
4,864,957
100.01%
(353)
-0.01%
2000
5,048,133
5,023,467
99.51%
30,744
5,054,211
100.12%
(6,078)
-0.12%
2001
5,512,262
5,452,863
98.92%
38,029
5,490,892
99.61%
21,370
0.39%
2002
7,101,309
7,073,568
99.61%
74,733
7,148,301
100.66%
(46,992)
-0.66%
2003
7,740,247
7,652,125
98.86%
59,833
7,711,958
99.63%
28,289
0.37%
(1) The total tax levy differs from actual levy certified to the County by the City because of fiscal disparity calculations done by the County after certification.
Page 75
TABLE 4
CITY OF ROSEMOUNT
'
ASSESSED VALUE (OR TAX CAPACITY) AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
YEARS 1994 THROUGH 2003
(UNAUDITED)
Total
Tax
Capacity
Real Property Personal Property Total
as % of
Local Tax Estimated Local Tax Estimated Local Tax Estimated
Estimated
State Tax
Net Tax Market Net Tax Market Net Tax Market
Market
Net Tax
Year Capacity (1) Value Capacity (1) Value Capacity (1) Value
Value
Capacity (1)
,
1994 $ 9,353,601 $ 447,655,900 $ 684,047 $ 15,575,800 $ 10,037,648 $ 463,231,700
2.17%
$ -
1995 10,457,896 504,471,000 788,475 17,847,700 11,246,371 522,318,700
2.15%
-
1996 11,306,222 550,367,500 807,629 18,240,600 12,113,851 568,608,100
2.13%
1997 11,080,577 600,557,700 705,144 18,248,900 11,785,721 618,806,600
1.90%
-
1998 10,774,036 638,681,700 645,047 19,097,400 11,419,083 657,779,100
1.74%
-
1999 11,859,976 707,783,400 717,210 21,717,800 12,577,186 729,501,200
1.72%
-
2000 13,891,830 825,291,700 702,059 21,180,000 14,593,889 846,471,700
1.72%
-
2001 11,205,876 954,693,600 427,790 22,047,100 11,633,666 976,740,700
1.19%
3,480,279
2002 13,098,497 1,131,403,300 426,870 22,150,000 13,525,367 1,153,553,300
2003 15,324,087 1,343,848,700 435,343 22,497,500 15,759,430 1,366,346,200
1.17%
1.15%
3,859,896
4,025,191
'
(1) For 1997 and 1998, the State Legislature changed the class rates of many types of property. This did not
have an impact on the estimated market values but it did have the effect of lowering the overall net tax capacity rates.
Beginning with 2001, payable 2002, the State made massive changes to the class rates of almost all properties. This resulted in large
decreases in the overall net tax capacity rates. To offset part of this change, the State added a new "State Tax' on commercial and
industrial properties that helped make up part of the losses.
Page 76
'
THIS PAGE INTENTIONALLY LEFT BLANK
(1) Beginning with property taxes payable in 1996, levies for voter approved referendums were based on market
value. Therefore, a separate rate for these market valued levies will be included for the applicable entity for the
life of the levies. Since these rates are calculated separately, they are not included in the total tax rates for
for the three school districts.
n/a - Not Applicable
Page 77 '
CITY OF ROSEMOUNT
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTAL UNITS
YEARS 1994 THROUGH 2003
(UNAUDITED)
'
S 96
I D 1
I SD 199
City Market
School Market
School
Market
School
Year
Referendum
District Referendum
District
Referendum
District
,
Collectible (2)
City
Rates (3)
No. 196 Rates (3)
No. 199
Rates (3)
No. 200
1994
32.297
n/a
60.933 n/a
58.239
n/a
60.404
1995
35.778
n/a
62.348 n/a
60.847
n/a
64.990
1996
36.055
0.02968
60.830 0.12239
47.629
0.26626
58.675
1997
35.627
0.02706
58.189 0.10868
55.643
0.20928
55.510
1998
40.428
0.02532
58.462 0.09567
53.715
0.23024
47.023
1999
41.710
0.02342
56.311 0.08074
55.610
0.24830
69.188
2000
39.335
0.02142
53.231 0.11986
43.385
0.20757
54.881
2001
36.553
0.01808
53.249 0.10648
44.570
0.19575
51.024
2002
59.546
0.01616
28.883 0.17859
16.824
0.10037
22.943
2003
57.123
0.01382
27.638 0.16120
14.565
0.19527
22.906
(1) Beginning with property taxes payable in 1996, levies for voter approved referendums were based on market
value. Therefore, a separate rate for these market valued levies will be included for the applicable entity for the
life of the levies. Since these rates are calculated separately, they are not included in the total tax rates for
for the three school districts.
n/a - Not Applicable
Page 77 '
TABLE 5
Page 78
Totals
School
School
ISD 200
District
District
District
Market
No.199
No.200
Referendum
Dakota
Special
125.139
Rates (3)
County
Districts (1)
128.619
115.418
126.464
124.532
121.986
n/a
27.474
4.964
120.597
n/a
27.994
4.702
126.268
n/a
26.626
5.108
112.821
n/a
25.721
4.995
120.612
0.10070
27.349
5.797
0.00618
28.322
6.702
0.06479
27.247
6.455
0.11424
25.320
6.378
0.01366
33.102
5.021
0.01575
32.463
5.563
Page 78
Totals
School
School
School
District
District
District
No.196
No.199
No.200
125.668
122.974
125.139
130.822
129.321
133.464
128.619
115.418
126.464
124.532
121.986
121.853
132.036
127.289
120.597
133.045
132.344
145.922
126.268
116.422
127.918
121.500
112.821
119.275
126.552
114.493
120.612
122.787
109.714
118.055
Page 78
TABLE 6
CITY OF ROSEMOUNT
SCHEDULE OF THE LARGEST TAXPAYERS
DECEMBER 31, 2003
(UNAUDITED)
'
Percentage
Local
of Total
Tax
Local Tax
Taxpayer
Type of Business
Capacity (1)
Capacity
'
1.
Great Northern Oil Co.
Oil Refinery
$ 1,376,457
8.73%
2.
Koch Refining Co.
Oil Refinery
694,303
4.41%
3.
Power Co.
Northern States P
Utility
y
336 , 629
2.14%
4.
Clarel Corporation (Cub Foods)
Retail
227,899
1.45%
5.
Limerick Way LLC
Townhouses
94,927
0.60%
r
6.
CF Industries, Inc. ( Cenex)
Fertilizer
89,954
0.57%
7.
Cue Properties LLC
Trucking/Warehouse
89,151
0.57%
(Wintz)
8.
D.R. Horton Inc. Minnesota
Townhouses
89,148
0.57%
9.
Hidden Valley Spe LLC (Rosemount Woods)
Manufactured Housing
82,583
0.52%
,
10.
Continental Nitrogen & Resources (CNR)
Fertilizer
82,440
0.52%
11.
Centex Homes
Townhouses
77,417
0.49 %
12.
Bigos - Rosemount LLC
(Cannon Equipment)
Manufacturing
54,759
0.35%
'
13.
Webb Properties LLC
Manufacturing
49,196
0.31%
r
14.
Contractor Property Developers (CPDC)
Townhouses
43,818
0.28%
15.
Gruett- Labriola Partnership (AWP)
Manufacturing
42,148
0.27%
r
$ 3,430,828
21.77%
Total City "Local' Tax Capacity
$ 15,759,430
"State
r
() 9 1 These figures do not include the Tax" amount
that now applies to only commercial and industrial properties.
Page 79
'
1
1994 $
1,091,498 $
1,066,749 $
1,036,792 $
TABLE 7
CITY OF ROSEMOUNT
1,121,455
1,485,789
1,019,183
1,588,061
SPECIAL ASSESSMENTS RECEIVABLE AND COLLECTIONS
1,588,061
881,589
YEARS 1994 THROUGH 2003
1,096,027
(UNAUDITED)
1,096,027
1,031,533
1,029,037
1,098,523
1998
1,098,523
Total Assessments
Total Assessments
3,616,355
Uncollected
Beginning Additional
Uncollected
End
Year
of Year Assessments Collections (1)
of Year
5,597,039
2000
1994 $
1,091,498 $
1,066,749 $
1,036,792 $
1,121,455
1995
1,121,455
1,485,789
1,019,183
1,588,061
1996
1,588,061
881,589
1,373,623
1,096,027
1997
1,096,027
1,031,533
1,029,037
1,098,523
1998
1,098,523
5,131,889
2,614,057
3,616,355
1999
3,616,355
5,659,779
3,679,095
5,597,039
2000
5,597,039
5,389,660
7,464,735
3,521,964
2001
3,521,964
17,678
1,635,841
1,903,801
2002
1,903,801
3,546,435
993,382
4,456,854
2003
4,456,854
2,007,850
1,557,386
4,907,318
(1) Includes prepayments
and foreclosures
Page 80
,
TABLE 8
CITY OF ROSEMOUNT
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 2003
(UNAUDITED)
' Estimated
Market Value
$ 1366 ,346,20 0
Legal Debt Margin:
Debt Limitation - 2% of Estimated Market Value
$ 27,326,924
Debt Applicable to Limitation:
Total Bonded Debt $ 30,230,000
Less: Special Assessment Bonds $ 13,405,000
Tax Increment Bonds -
Revenue Bonds 7,075,000
Port Authority Bonds 7,710,000
State Aid Street Bonds -
Amount Available for Repayment of
General Obligation Bonds 327,215 28,517,215
Total Debt Applicable to Limitation
1,712,785
'
Legal Debt Margin
$ 25,614,139
Page 81
1
1
1
1
1
1
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ROSEMOUNT
RATIO OF NET BONDED DEBT TO ASSESSED VALUE OR TAX CAPACITY
RA ( ) AND
MARKET VALUE AND NET BONDED DEBT PER CAPITA
YEARS 1994 THROUGH 2003
(UNAUDITED)
(1) Figures taken from Table 13.
(2) See note at Table 4.
(3) Figures taken from Table 4.
(4) Figure includes all debt of the City (all debt is issued as general obligation debt).
(5) Amount available for repayment of general obligation bonds that are property tax supported (See Table 8).
(6) Includes all other general obligation bonds that are being repaid through other sources including (See Table 8):
(a) Special Assessment Bonds
(b) Tax Increment Bonds
(c) Revenue Bonds
(d) Port Authority Bonds
(e) State Aid Street Bonds
W
11�
1
Page 82
Less Debt
Gross
Less Debt
Payable
Net
Tax
Market
Bonded
Service
from Other
Bonded
Year
Population (1
Capacity (2) (3)
Value (3)
Debt (4)
Funds (5)
Sources (6)
Debt
1994
11,086
$ 10,037,648
$ 463,231,700
$ 24,870,000
$ 1,042,216
21,980,000
$ 1,847,784
1995
11,721
11,246,371
522,318,700
22,725,000
253,229
20,810,000
1,661,771
1996
12,272
12,113,851
568,608,100
22,710,000
424,251
19,205,000
3,080,749
1997
12,763
11,785,721
618,806,600
24,295,000
398,482
21,030,000
2,866,518
1998
13,146
11,419,083
657,779,100
30,130,000
431,469
27,075,000
2,623,531
1999
13,544
12,577,186
729,501,200
37,025,000
465,395
34,190,000
2,369,605
2000
14,619
14,593,889
846,471,700
37,475,000
501,164
34,870,000
2,103,836
2001
15,270
11,633,666
976,740,700
40,360,000
1,243,964
37,270,000
1,846,036
2002
16,110
13,525,367
1,153,553,300
41,885,000
1,001,559
39,040,000
1,843,441
2003
18,700
15,759,430
1,366,346,200
30,230,000
327,215
28,190,000
1,712,785
(1) Figures taken from Table 13.
(2) See note at Table 4.
(3) Figures taken from Table 4.
(4) Figure includes all debt of the City (all debt is issued as general obligation debt).
(5) Amount available for repayment of general obligation bonds that are property tax supported (See Table 8).
(6) Includes all other general obligation bonds that are being repaid through other sources including (See Table 8):
(a) Special Assessment Bonds
(b) Tax Increment Bonds
(c) Revenue Bonds
(d) Port Authority Bonds
(e) State Aid Street Bonds
W
11�
1
Page 82
TABLE 9
Net
Bonded Debt
as a
Percent of
Net Bonded
Tax Market
Debt
Capacity (2) Value
Per Capita
18.41%
0.40%
$ 167
14.78%
0.32%
142
25.43%
0.54%
251
24.32%
0.46%
225
22.97%
0.40%
200
18.84%
0.32%
175
14.42%
0.25%
144
15.87%
0.19%
121
13.63%
0.16%
114
10.87%
0.13%
92
Page 83
(1) Includes only general obligation bonds supported solely by taxes.
(2) Figures taken from Table 1.
(3) 1995 includes call payment on a refunding bond.
1997 includes first principal and interest payments on Fire Station Bonds, Series 1996A.
Page 84
'
TABLE 10
CITY OF ROSEMOUNT
I
F RATIO O ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL FUND EXPENDITURES
YEARS 1994 THROUGH 2003
'
(UNAUDITED)
Ratio of
Total
Debt Service
Total
General
to
Debt
Fund
General Fund
Year
Principal (1)
Interest (1)
Service (1)
Expenditures (2)
Expenditures (3)
1994
140,000
164,713
$ 304,713 $
4,217,676
7.2%
1995
975,000
129,938
1,104,938
4,359,168
25.3%
1996
190,000
95,130
285,130
4,496,577
6.3%
1997
240,000
188,159
428,159
4,505,607
9.5%
1998
210,000
171,170
381,170
4,721,782
8.1%
1999
220,000
162,125
382,125
4,895,199
7.8%
2000
230,000
152,253
382,253
5,492,144
7.0%
2001
240,000
141,540
381,540
6,419,086
5.9%
2002
245,000
149,420
394,420
5,998,389
6.6%
2003
120,000
149,980
269,980
8,000,716
3.4%
(1) Includes only general obligation bonds supported solely by taxes.
(2) Figures taken from Table 1.
(3) 1995 includes call payment on a refunding bond.
1997 includes first principal and interest payments on Fire Station Bonds, Series 1996A.
Page 84
' TABLE 11
CITY OF ROSEMOUNT
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
DECEMBER 31, 2003
(UNAUDITED)
r Overlapping
Net General
Obligation
Percentage
Amount
Bonded Debt
Applicable
Applicable
Governmental Units
Direct Debt:
Outstanding (2)
to City (6)
to City
I.S.D. 200 - Hastings 42,675,000
City of Rosemount
$ 1,712,785 (3)
100.00% $
1,712,785
r Overlapping
Debt (1):
School Districts:
I.S.D. 196 - Rosemount 121,391,854 (4)
11.90%
14,445,631
I.S.D. 199 - Inver Grove Heights 9,025,000
6.40%
577,600
I.S.D. 200 - Hastings 42,675,000
0.20%
85,350
Dakota County 99,200,000
4.40%
4,364,800
Regional:
Metropolitan Council 24,650,000 (5)
0.60%
147,900
Metropolitan Transit District 159,840,000
0.70%
1,118,880
Total Overlapping Debt $ 456,781,854
$
20,740,161
Total Direct & Overlapping Debt $ 458,494,639
$
22,452,946
(1) Only those units with debt outstanding are shown here.
(2) Overlapping debt figures exclude debt supported by revenues and tax
and aid anticipation debt.
(3) Net general obligation bonded debt of the city supported by property taxes (see table 9).
(4) Includes $17,025,000 of annual appropriation lease revenue debt.
(5) Does not include outstanding general obligation debt supported by sewer revenues, 911
user fees or
housing rental payments.
(6) Percent of governmental unit within the City of Rosemount's boundaries calculated
by the city's fiscal consultants, Springsted Inc.
Page 85
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Gross
Revenue
TABLE 12
CITY OF ROSEMOUNT
$ 1,300,844
'
REVENUE BOND COVERAGE
1,030,987
YEARS 1994 THROUGH 2003
1,078,097
(UNAUDITED)
,
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Gross
Revenue
Expenses (1)
$ 1,300,844
$ 851,537
1,412,272
1,030,987
1,571,350
1,078,097
1,601,842
1,200,803
1,837,331
1,282,660
2,058,292
1,274,656
2,418,849
1,323,393
2,413,096
1,527,253
2,597,820
1,770,676
3,082,235
1,892,152
Net Revenue D
Debt Service
Available R
Requirements
For Debt
Service P
Principal (2) I
Interest T
Total C
Coverage
(1) Figure does not include depreciation expense
(2) 1997 includes call payment on 1989A Revenue Bonds & 2002 includes call payment on 1992B Revenue Bonds.
r
Page 86
r
u
n
[1
CITY OF ROSEMOUNT
DEMOGRAPHIC STATISTICS
YEARS 1994 THROUGH 2003
(UNAUDITED)
TABLE 13
(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 and 2003 is the City staffs best estimate.
(2) These figures are provided by the Minnesota State Demographic Center and are for Dakota County.
These figures usually have a 2 to 3 -year lag time so that is why the two most current years have 'Wa ".
(3) School enrollment is the total number of students who reside within the Rosemount High School boundaries and go to
Independent School District No. 196 schools located in Rosemount. The significant drop in 1997 is because of the
opening of a fourth high school in the district which caused a shifting of the Rosemount High School's population.
Beginning in 2000, the total school enrollment will show the total number of students with homes in
the City of Rosemount.
(4) Unemployment rates were compiled by the Minnesota Local Area Unemployment Statistics (LAUS) -for Dakota County
(5) These figures are provided by the Census Bureau and are for Dakota County.
Figures prior to 2000 will be reflective of the 1990 census and figures from
2000 forward will be reflective of the 2000 census.
1 n/a - Data not available.
Page 87
Per Capita
School
Unemployment
Median
Year
Population (1)
Income (2)
Enrollment (3)
Rate (4)
Age (5)
1994
11,086
$ 25,030
5,410
2.9%
30.2
1995
11,721
26,038
5,331
2.5%
30.2
1996
12,272
27,488
5,000
2.6%
30.2
1997
12,763
29,864
4,188
2.0%
30.2
1998
13,146
31,775
4,084
1.8%
30.2
1999
13,544
33,193
5,651
1.9%
30.2
2000
14,619
35,448
3,190
2.2%
<35.4
2001
15,270
36,472
3,638
2.8%
<35.4
2002
16,110
n/a
4,262
3.7%
<35.4
2003
18,700
n/a
3,849
4.2%
<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 and 2003 is the City staffs best estimate.
(2) These figures are provided by the Minnesota State Demographic Center and are for Dakota County.
These figures usually have a 2 to 3 -year lag time so that is why the two most current years have 'Wa ".
(3) School enrollment is the total number of students who reside within the Rosemount High School boundaries and go to
Independent School District No. 196 schools located in Rosemount. The significant drop in 1997 is because of the
opening of a fourth high school in the district which caused a shifting of the Rosemount High School's population.
Beginning in 2000, the total school enrollment will show the total number of students with homes in
the City of Rosemount.
(4) Unemployment rates were compiled by the Minnesota Local Area Unemployment Statistics (LAUS) -for Dakota County
(5) These figures are provided by the Census Bureau and are for Dakota County.
Figures prior to 2000 will be reflective of the 1990 census and figures from
2000 forward will be reflective of the 2000 census.
1 n/a - Data not available.
Page 87
TABLE 14
CITY OF ROSEMOUNT
PROPERTY VALUE AND CONSTRUCTION
YEARS 1994 THROUGH 2003
(UNAUDITED)
Commercial /Industrial
Construction
Residential
Construction
(1) Estimated market value - totals are from Table 4.
# of
Value Permits
$ 6,798,974
606
Property
Value (1)
7,041,948
# of
Year
Commercial
Residential
Agricultural
Total
Permits
10,070,976
794
17,455,749
921
21,465,696
1,307
1994
$ 125,938,000
$ 320,080,000
$ 17,213,700
$ 463,231,700
29
1995
133,848,200
371,130,100
17,340,400
522,318,700
43
1996
138,085,100
412,697,700
17,825,300
568,608,100
51
1997
143,300,500
455,945,000
19,561,100
618,806,600
57
1998
150,422,500
486,616,300
20,740,300
657,779,100
72
1999
171,330,700
538,288,100
19,882,400
729,501,200
66
2000
188,161,200
636,261,900
22,048,600
846,471,700
68
2001
198,595,800
753,624,600
24,520,300
976,740,700
88
2002
200,634,000
924,618,800
28,300,500
1,153,553,300
91
2003
209,026,400
1,123,114,000
34,205,800
1,366,346,200
97
(1) Estimated market value - totals are from Table 4.
# of
Value Permits
$ 6,798,974
606
8,396,669
598
7,041,948
604
8,650,087
544
8,086,134
667
7,130,240
955
10,070,976
794
17,455,749
921
21,465,696
1,307
5,167,412
1,031
Value
25,175,253
21,980,180
21,399,002
15, 523, 565
23,853,221
43,820,487
42,054,241
65,441,418
60,933,124
91,705,297
Page 88
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF ROSEMOUNT
MISCELLANEOUS STATISTICS
DECEMBER 31, 2003
(UNAUDITED)
TABLE 15
Date of Incorporation
Form of Government (Statutory)
Number of Employees:
Regular Full -time
Part -time or Temporary
Area in Square Miles
City of Rosemount Facilities and Services:
Miles of Streets
Number of Street Lights
Culture and Recreation:
Community Centers
Parks
Park Acreage
Tennis Courts
Fire Protection:
Number of Stations
Number of Fire Personnel and Officers
Number of Calls Answered
Number of Vehicles
Police Protection:
Number of Stations
Number of Police Personnel and Officers:
Sworn Officers
Other Police Personnel
Number of Calls for Service
Number of Patrol Miles
Number of Patrol Vehicles:
Marked
Unmarked
Sewerage System:
Miles of Sanitary Sewers
Miles of Storm Sewers
Number of Service Connections
Water System:
Miles of Water Mains:
Municipal / Rural
Number of Service Connections
Number of Wells:
Municipal
Rural
Number of Water Towers
Number of Fire Hydrants
Daily Average Consumption in Gallons
Maximum Daily Pumping Capacity in Gallons
Public Education Facilities:
Number of Elementary Schools
Number of Secondary Schools
Number of Special Education Schools
1858
Council/City Administrator
71
150
36
117.65
1,004
1
23
302
4
2
42
480
12 and 1 Trailer
1
18
4
13,669
200,995
8
3
66.03
45.07
5,098
92.69
5,217
4
2
3
823
2,088,850
6,000,000
2
2
1 (Dakota County Technical College)
Page 89
THIS PAGE INTENTIONALLY LEFT BLANK