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Home My WebLink About10.a. Legislative UpdateCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: JUNE 3, 2003 AGENDA: LEGISLATIVE UPDATE AGENDA SECTION: LE GIS LATIVE/INTERGO V' T PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR AGEN #1 OA ATTACHMENTS: NONE APPROVED BY: As of the time the agenda packet was being prepared, it appeared that the Legislature was nearing completion of the Special Session. Agreement has apparently been reached on local government aids and the other remaining issues, although specific details are preliminary and not certain until the Governor has signed the bill. Staff will present a recap of the final tax bill and its impacts on the City. Staff will also present a recap of the Annual Meeting of the Association of Metropolitan Municipalities (AMM), to be held on Thursday, May 29. RECOMMENDED ACTION: NO SPECIFIC ACTION IS REQUESTED. COUNCIL ACTION: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 CLERKS' FlL.= Zoo 3 -al COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2002 CITY OF ROSEMOUNT, MINNESOTA V'Ah' VirchowKrause &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, 2002 and have issued our report thereon dated March 14, 2003. 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 13, 2003 Virchow, Krause & Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International MA VirchOrlrause company To the City Council City of Rosemount Rosemount, Minnesota We have audited the financial statements of the City of Rosemount for the years ended December 31, 2002 and 2001, and have issued our report thereon dated March 13, 2003. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under U.S. Generally Accepted Accounting Standards As stated in our engagement letter dated November 15, 2002, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the general purpose 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 errors, fraud, or other illegal acts 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. 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. No new accounting policies were adopted and the application of existing policies was not changed during 2002. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. We are not aware of any particularly sensitive accounting estimates utilized by management in its financial statement process. Virchow, Krause & Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International To the City Council City of Rosemount Page 2 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 indicated 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. We proposed one other audit adjustment relating to accrued interest income. Management has determined that the effects of the uncorrected misstatements summarized in the attached schedule are immaterial, both individually and in the aggregate, to the general purpose 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 our audit. Consultation 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" in certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's 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. Issues Discussed Prior to This Year's Audit We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to performing the audit. These discussions occurred in the normal course of our professional relationship and our responses were not a condition to the services performed as your auditor. To the City Council City of Rosemount Page 3 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Graphs The graphs included with this letter were derived from the audited financial statements and should be read in conjunction with the financial statements and the reports thereon. 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 13, 2003 City of Rosemount General Fund Balance as a % of Adopted Expenditure Budget 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 1996 1997 1998 1999 2000 2001 2002 Virchow, Krause & Company, LLP City of Rosemount Tax Levy vs. Net Tax Capacity $16 $14 / $12 $10 $8,000,000 $6,000,000 $4 - $2,000,000 $0 1996 1997 1998 1999 2000 2001 2002 Total Tax Levy m ---Net Tax Capacity Virchow, Krause & Company, LLP City of Rosemount Property - Estimated Market Values $1,400,000,000 $1 $1,000,000,000 $800 $600 $400 $200,000 $0 1996 1997 1998 1999 2000 2001 2002 Virchow, Krause & Company, LLP City of Rosemount General Fund Intergovernmental $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000 ' $2 ' $2,000,000 $1,500,000 $1,000,000 $500,000 $0 1996 1997 1998 1999 2000 2001 Intergovernmental Revenue Property Taxes 2002 Virchow, Krause & Company, LLP City of Rosemount 10 Largest Taxpayers &Others 24% 76% ® Ten Largest Taxpayers ❑ All Others Virchow, Krause & Company, LLP City of Rosemount Net Bonded Debt $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 1996 1997 Virchow, Krause & Company, LLP 1998 1999 2000 2001 2002 City of Rosemount Gross Bonded Debt $45 $40,000 $35 $30 $25 $20 $15 $10,000,000 $5,000,000 $0 1996 Virchow, Krause & Company, LLP 1997 1998 1999 2000 2001 2002 City of Rosemount g m 7,000,000 M-9 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 General Fund Revenues ■ PROPERTY TAXES ® INTERGOVERNMENTAL ■ FOR SERVIC MALL OTHER 1996 1997 1998 1999 2000 2001 2002 City of Rosemount General Fund Balances . oe1 0II 5,000,000 4,000,000 2,000,000 1,000,000 1996 1997 1998 1999 2000 2001 2002 City of Rosemount Enterprise Funds 3,000,000 2,500,000 1996 1997 �� t - 1998 2000 2001 2,000,000 1,500,000 1,000,000 500,000 1999 OPERATING EXPENSES OPERATING REVENUE ■OPERATING REVENUE ®OPERATING EXPENSES 2002 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF ROSEMOUNT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2002 PREPARED BY THE DEPARTMENTS OF ADMINISTRATION AND FINANCE GARY D. KALSTABAKKEN, Interim City Administrator JEFFREY A. MAY, Finance Director 1 L CITY OF ROSEMOUNT COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2002 TABLE OF CONTENTS EXHIBIT PAGE (S I. INTRODUCTORY SECTION City Officials Organizational Chart Letter of Transmittal Certificate of Achievement II. FINANCIAL SECTION Independent Auditors' Report A. General Purpose Financial Statements Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Government Fund Types, Account Groups and Discretely Presented Component Unit Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (as Amended) and Actual (Budgetary Basis) - General and Annually Adopted Special Revenue Funds Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types Notes to the Financial Statements B. Combining, Individual Fund, and Account Group Financial Statements and Schedules General Fund: Comparative Balance Sheet Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Revenues and Other Financing Sources - Budget (as Amended) and Actual (Budgetary Basis) Schedule of Expenditures and Other Financing Uses - Budget (as Amended) and Actual (Budgetary Basis) Special Revenue Funds: v vi vii xix 1 1 2 -3 2 4 -5 3 4 5 6 -7 8 9 10 -30 A -1 A -2 A -3 A -4 31 32 33 34 -35 CITY OF ROSEMOUNT COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2002 TABLE OF CONTENTS (Continued) EXHIBIT PAGE (S Debt Service Funds: Comparative Balance Sheet C -1 44 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances C -2 45 Capital Project Funds: Comparative Balance Sheet D -1 46 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances D -2 47 Enterprise Funds: Combining Balance Sheet E -1 48 -49 Combining Statement of Revenues, Expenses and Changes in Retained Earnings E -2 50 -51 Combining Statement of Cash Flows E -3 52 -53 Internal Service Funds: Comparative Balance Sheet F -1 54 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F -2 55 Comparative Statement of Cash Flows F -3 56 Agency Funds: Combining Balance Sheet G -1 57 Combining Statement of Changes in Assets and Liabilities G -2 58 Component Unit - Port Authority: Combining Balance Sheet H -1 59 -60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances H -2 61 -62 General Fixed Assets Account Group: Schedule of General Fixed Assets 1 -1 63 Financial Schedules: Combined Schedule of Bonds Payable J -1 64 Combined Schedule of Debt Service Requirements J -2 65 -66 i CITY OF ROSEMOUNT COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2002 TABLE OF CONTENTS (Continued) TABLE PAGE(S) III. STATISTICAL SECTION (Unaudited) General Fund Expenditures and Other Financing Uses by Function 1 67 General Fund Revenues and Other Financing Sources by Source 2 68 Property Tax Levies and Collections 3 69 Assessed Value (or Tax Capacity) and Estimated Market Value of All Taxable Property 4 70 Property Tax Rates -All Direct and Overlapping Governmental Units 5 71 -72 Schedule of the Ten Largest Taxpayers 6 73 Special Assessment Receivables and Collections 7 74 Computation of Legal Debt Margin 8 75 Ratio of Net Bonded Debt to Assessed Value (or Tax Capacity) and Market Value and Net Bonded Debt Per Capita 9 76 -77 Ratio of Annual Debt Service Expenditures For General Bonded Debt to Total General Fund Expenditures 10 78 Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds 11 79 Revenue Bond Coverage 12 80 Demographic Statistics 13 81 Property Value and Construction 14 82 Miscellaneous Statistics 15 83 THIS PAGE INTENTIONALLY LEFT BLANK INTRODUCTORY SECTION t 1 i CITY OF ROSEMOUNT CITY OFFICIALS Year Ended December 31, 2002 Term of Office ELECTED OFFICIALS: Mayor Cathy E. Busho Councilmember Mary Riley Councilmember Ena Cisewski Councilmember John F. Edwards I I APPOINTED OFFICIALS: Interim City Administrator Finance Director Human Resources /Communications Coordinator Community Development Director Police Chief Fire Chief Parks and Recreation Director CONSULTANTS AND ADVISORS: Legal Auditing Fiscal Engineering Four Years Four Years Four Years Four Years Gary D. Kalstabakken Jeffrey A. May Paula Graff James Parsons Gary D. Kalstabakken Scott W. Aker Dan Schultz Term Expires December 31, 2002 December 31, 2004 December 31, 2002 December 31, 2002 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 v City of Rosemount Organizational Chart January 2003 CITY OF ROSEMOU NT CITY HALL 2875 — 145th Street West Rosemount, MN 55068 -4997 Phone: 651 -42 3 -4411 Hearing Impaired 651 - 423 -6219 Fax: 651- 423 -5203 March 13, 2003 Honorable Mayor and Members of the City Council City of Rosemount, Minnesota The Comprehensive Annual Financial Report of the City of Rosemount, Minnesota, for the year ended December 31, 2002, is hereby submitted as mandated by state statutes. These statutes require that the City of Rosemount issues annually a report on its financial position and activity, and that an independent firm of certified public accountants audits this report. This report was prepared by the City's Finance Department and responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, supporting schedules and statistical tables, rests with the City. To the best of our knowledge, the data, as presented, is accurate in all material respects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds and account groups, and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. The comprehensive annual financial report is presented in three sections: introductory, financial and statistical. The introductory section, which is unaudited, includes this transmittal letter, the City's organizational chart and a list of the City's principal elected and appointed officials. The financial section includes the independent auditors' report, the general purpose financial statements, notes to the financial statements, the combining, individual fund and account group financial statements, and the supplemental financial schedules. The statistical section, which is unaudited, includes selected financial and demographic information, generally presented on a multi -year basis. The organization, form and contents of this report were prepared in accordance with the standards prescribed by the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States and Canada, the American Institute of ' Certified Public Accountants, the Minnesota State Auditor's Office and the Rosemount City Charter. 1 I vii llln •jlun }ueuodwoo paluesaid Alajajoslp a se liodai leloueug slyl ul paluesaid ' uaeq sey elep le sApoq�ny hod ay- * ayj jo suoll Iejaua6 a.ie salllnIIOe ljuoyjny hod ao; panssl ;qaa sal�lnl�oe flljoylny IJod JOJ 6uloueu , �uawdolanap �Cllunwwoo Jofew Sapinoid �4I0 ay} pue Salnal xe; A4laoylnd IJod Ile sanoidde pue SM91AGJ Ilounoo ' A}!3 ay- I!ounoo fqlZ) ay1 Aq paju si paeoq 6ulwano6 s,41!joylny hod ay- •sloafoid juawdolanapaJ pue olwouooe ule}jao Ino fujeo of fqIo ayj !q pajeaao seen A4uoy ;ny hod ay- Ir I uoylny liod ;unowaso� •Saioua6e le}u9wua9no6 leuol6ai Aq slseq leuol6aj a uo pajejado aje jlsueaj ssew pue juawleaA a6emaS 'slseq 91enud e uo 6uiloAoaj pue lesodslp pue uoljoalloo asnjaa alpuey 'saalney aIenud qj!m sjuawa6ueije len}oe,i}uoo y6nojy} 'sassaulsnq pue sjuaplsaj Aj1:D •euaje pue aa}enn wjo ;s 'aaMas 'ja ;eM :sasudjajua inoj sajeaado osle fl1:D ay- •saolnaas anlJeJIslulwpe 1eJau96 pue uo11eaaoaa pue s>{aed 's�jjoM olignd '(ajij pue aollod) Ajejes ollgnd jo 6ullslsuoo saoinaas ledlolunw jo abuea Iln} e y}lnn sassaulsnq pue s ;uaplsaa sjl sapinoid �4I:D ayl •1iodaj slyl ul papnioul a.ie algelun000e Alleloueuu si All3 ayj yolynn jo; suolsslwwoo pue spaeoq 'salouaft 's ;uaw}jedap 'sdnoj6 jun000e 'spun; IIV •OZOZ jean( ayj Iljun juawdolanap apin6 IIIM pue 666E ul palepdn seen ueld sly- aseq xel punos e alenjadiad II!m yoigm gWoa6 pue juawdolanap AIaapjo 94owojd pue 96einooue of pau6lsep si pue 'Aj1O ayj jo lollod 4uewdolanap pue 6uluoz a6uej -6uol seulllno ueld ay- - junowaso�j 40 unno- pue a6ellln aau.uo; ay1 Jo l L61, ul uo11epllosuoo ay4 Ja1 ;e uoos pauolsslwwoo seen yolynn `ueld ash PUe anlsuayajdwo:D e Aq papin6 si 41IC) ayj ;o juawdolanap pue y}nnaO •lenoidde leUld s,llounoo A}Io ay} qj!m `s}uawjjedap snouen s,4:D ay1 ;o Speay ayj 6ullulodde jol pue A}!3 ayj ;o suoljejado Aep- of -lep ayj 6ulaaSJano JOJ 'IlounoO fqlo ayl jo saoueulpio pue salollod ayj Ino 6uifijeo joj elglsuodsai si aojeajslulwpy 40 ay- •IlounoC) AI1O ayj Jo uoljajosip ay} le sEm ias pue Aq pajulodde si oqm 'jolejlslulwpy Aj!o ayj sl jaol}}o anlJeJjslulwpe ;alyo S.Aj!o ay- •aaol}}o anljeajslulwpe Jalyo s,Al!o ay4 6ulaly pue sa911lwwoo 6uqulodde '196pnq ayj 6uildope 'seoueuipao 6ulssed joj 's6ulyl jayjo 6uowe 'elglsuodsai si Ilounoo ljlo ay- •S ea! onnq AJ ana paJoala s eM JOAew ay1 UU14 o} aoud '966L ul paln }i ;sul 96ueyo e seen joAeVq ay} joj weal sly- •saagwaw Ilounoo ayj ;o oN ;o swial ayj L41!m 6ulplouloo weal jea/ -.inoj e 6ulnaas joleW ay} pue aoL4o jo swial jean( -ano; 6ulddelJano 01 pa ;oala 6ulaq sjagwaw Ilouno:D .inoj ayj qj!m 'Ju9wuaano6 �o wjo� Ilounoo- joAeVq e sey Aj10 ay- 'tL6L ui 4 1l0 !uo }n}ejs e aweoaq pue '85g L ul uoljejodioo ledlolunw e se paysllgelsa senn 41i0 ay- SEIOIA2J3S Sll (INV A111N3 01\111210d32:I 3Hl ECONOMIC CONDITION AND OUTLOOK The City of Rosemount is a growing southern suburb in the Minneapolis /St. Paul metropolitan area, located in Dakota County. The City encompasses approximately 36 square miles. The City is one of the fastest growing communities in the seven - county Minneapolis /St. Paul metropolitan area as demonstrated by the following population trend: Rosemount has an extensive system of State and County highways and 114 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. 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 26% of the City's tax base. Labor market data is very impressive for the State, Minneapolis /St. Dakota County, in which Rosemount is located. 2002 labor force 1,840,171; and 229,437 respectively with unemployment rates of match. These figures compare quite favorably with national figures. I I 1 Paul metropolitan area and numbers were 2,918,058; 4.4 %; 4.2% and 3.7% to 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. ix Population Percent Population Increase Increase 2002 Estimate 17,293 2,674 18% 2000 Census 14,619 5,997 70% 1990 Census 8,622 3,539 70% 1980 Census 5,083 1,049 26% 1970 Census 4,034 - - Rosemount has an extensive system of State and County highways and 114 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. 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 26% of the City's tax base. Labor market data is very impressive for the State, Minneapolis /St. Dakota County, in which Rosemount is located. 2002 labor force 1,840,171; and 229,437 respectively with unemployment rates of match. These figures compare quite favorably with national figures. I I 1 Paul metropolitan area and numbers were 2,918,058; 4.4 %; 4.2% and 3.7% to 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. ix MAJOR INITIATIVES The City of Rosemount continued strong housing development during the 2002 construction year. Approval of the Drumcliffe Addition plat marked the completion of the western half of the Evermoor development located west of Shannon Parkway. As part of the Drumcliffe Addition a new sanitary sewer lift station was constructed along with the completion of the Marcotte Pond storm water lift station. East of Shannon Parkway, the completion of Evermoor Parkway to Connemara Trail and Connemara Trail from just east of Shannon Parkway to Trunk Highway 3 opened the way for more development in this area. Developments that were started in this part of Evermoor in 2002 included Crosscroft, Glenndalough, Clare Downs, Waterford, Roundstone and Bard's Crossing. The 4 phase of the Bloomfield Development was completed with site grading started for the Bloomfield 5 th 6th and 8 additions as well. A commercial development, Rosewood Village Center, continued expanding as 2 lots began construction of a fast food restaurant and a small retail building just to the east of the Cub Foods store. Work on the Trunk Highway 3 enhancements between CSAH 42 and 145 Street West was started with a majority of the work completed. The project should be completed by the early summer of 2003. Preliminary test drilling was started on Well #12 located within the Rosemount Business Park. Land has also been acquired by the Well #12 site for the construction of a future water treatment plant. Overall, in the year 2002, the City added 3.82 miles of public street, over 2.69 miles of sanitary sewer, 4.10 miles of storm sewers, and 4.20 miles of watermains. The Police Department has continued to provide services and programs that are consistent with the community- oriented policing philosophy. In 2002 these initiatives included: • Patrol officers were 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 2002. • National Night Out — Police and fire officials also visited sixteen neighborhoods on the first Tuesday of August as part of this nationwide event. • Police Reserve Officer Program — Citizens volunteer to assist police officers with non- enforcement duties in this program. Volunteers in this program put in over 1,700 hours during this year. • Police Chaplains — Participants in this program attended several training sessions during the year to prepare them for their duties. These training sessions have been done in cooperation with the chaplains from neighboring agencies. Chaplains assist officers in dealing with any type of call that may be viewed as a crisis, such as, deaths in the family — particularly unexpected deaths, mental health issues, etc. • Citizen Police Academy — The department sponsored its first CPA in 2002. Twenty -five 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. 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 will lease the building to CAC to house their Rosemount operations. x SIGNIFICANT DEVELOPMENTS Rosemount Business Park In 2002, the Rosemount Port Authority was instrumental in the development of 10,000 square feet of space for manufacturing, offices and warehousing in the Rosemount Business Park. The Port Authority has sold all of its lots, and is working with private land owners and developers for future expansion of the business park. ' Flint Hills Resources, formerly Koch Refinery Flint Hills Resources is a leading producer of petroleum products in Minnesota and Wisconsin ' converting 290,000 barrels of crude oil into gasoline each day. This Rosemount company employs 750 full -time workers and nearly 200 independent contractors and it continues to invest in new equipment, processes, training and operations. ' Army National Guard ' The City of Rosemount, in cooperation with the Army National Guard, completed a training and community center facility in 1994. In 1995, the National Guard also completed a central maintenance facility of approximately 30,000 square feet in Rosemount. The multi -use ' community center facility encompasses 140,000 square feet of usable space for a variety of training, recreational and social opportunities for the Rosemount community and National Guard. The National Guard division headquarters is housed in the facility for the 34th Red Bull Infantry Division. This is only one of eight such divisional headquarters for the National Guard in the entire United States. ACCOUNTING SYSTEM AND REPORTS The accounting for all activities of the City is divided into various funds or account groups as ' required by Statute and /or generally accepted accounting principles. Financial statements are presented on the accrual, or modified accrual basis, as appropriate. The financial information of the funds is presented in conformity with generally accepted accounting principles (GAAP) ' applicable to governmental entities. Accounting and bookkeeping for all City activities are centralized under the Finance Department. The responsibility for financial records, maintaining internal controls and preparing financial and budgetary reports is delegated to this department. ' The internal control structure is designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the presentation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgeting controls are maintained in accordance with City policy to ensure compliance with annually appropriated budgets approved by the City Council. Appropriations that have not been expended at the end of the year lapse, except in special situations in which the City Council may encumber unexpended funds forward to the following year. I A GENERAL GOVERNMENT FUNCTIONS General municipal services are accounted for in the City's General Fund. The following table presents a comparative analysis of General Fund revenues and other financing sources to the adopted budget as presented in Exhibit A -3: 2001 and 2002 showed great consistency between the various revenue areas except for the areas of taxes and intergovernmental. Taxes increased in spite of levy limits by the State because of continued growth and because of the losses of HACA (received under the Intergovernmental category), a state aid program that was discontinued. The building growth continued at near record levels in 2002, especially in the residential area, because of a large increase in the lots available to build on. The growth is expected to continue into 2003 as well because of the continuation of the Evermoor Addition, a 1,200 -unit development, which began building in late 2000 and the continuation of the Bloomfield Addition, a 500 to 700 -unit development that began construction at about the same time as the Evermoor Addition. The following table presents a comparative analysis of General Fund expenditures and other uses to the adopted budget as presented in Exhibit A -4: 2002 Actual 2001 Actual % of % of Revenues and Other Financing Sources Amount Total Amount Total Taxes $ 4,556,291 61% $ 3,188,409 49% Licenses and Permits 797,688 11% 790,396 12% Intergovernmental 666,057 9% 1,185,590 18% Charges for Services 702,775 9% 700,702 11% Fines and Forfeitures 85,835 1% 88,524 2% Recreational Fees 231,287 3% 222,921 4% Other 268,377 4% 268,625 4% Transfers 114,800 2% 3,500 0% Total $ 7,423,110 100% $ 6,448,667 100% 2001 and 2002 showed great consistency between the various revenue areas except for the areas of taxes and intergovernmental. Taxes increased in spite of levy limits by the State because of continued growth and because of the losses of HACA (received under the Intergovernmental category), a state aid program that was discontinued. The building growth continued at near record levels in 2002, especially in the residential area, because of a large increase in the lots available to build on. The growth is expected to continue into 2003 as well because of the continuation of the Evermoor Addition, a 1,200 -unit development, which began building in late 2000 and the continuation of the Bloomfield Addition, a 500 to 700 -unit development that began construction at about the same time as the Evermoor Addition. The following table presents a comparative analysis of General Fund expenditures and other uses to the adopted budget as presented in Exhibit A -4: As with the revenues, there was a great deal of consistency on the expenditure side of the General Fund between 2001 and 2002. All departments stayed very close to their budgeted figures in 2002 with the final expenditures being under budget by 8% of the actual budget. Transfers made from the General Fund in 2001 were to help offset the costs of the City Hall remodel /expansion and the costs of a downtown improvement project. xn 2002 Actual 2001 Actual % of % of Expenditures and Other Uses Amount Total Amount Total General Government $ 1,526,727 26% $ 1,363,241 21% Public Safety 1,884,975 31% 1,710,016 27% Public Works 1,801,461 30% 1,696,322 26% Parks and Recreation 785,226 13% 751,673 12% Transfers -0- 0% 897,834 14% Totals $ 5,998,389 100% $ 6,419,086 100% As with the revenues, there was a great deal of consistency on the expenditure side of the General Fund between 2001 and 2002. All departments stayed very close to their budgeted figures in 2002 with the final expenditures being under budget by 8% of the actual budget. Transfers made from the General Fund in 2001 were to help offset the costs of the City Hall remodel /expansion and the costs of a downtown improvement project. xn F I� u rj The City's General Fund Balance increased by $1,361,053 during 2002 and equaled $5,126,656 at year -end. The following table shows previous year -end General Fund balances as compared to the adopted expenditure budget of the following year: The City has determined that it would like to maintain 30 to 50 (or greater) percent of the next operating expenditure budget as a fund balance. Ideally, 50 percent (or greater) of the next budget would be preferred, although concern is being expressed that certain State officials will arbitrarily decide on the appropriate fund balance for municipalities and reduce aid if an undesignated fund balance exists above a certain level. Forty to fifty percent: normally provides adequate working capital to finance General Fund operations until property taxes and State aids are received. The fund balance also provides a certain amount of comfort that unforeseen emergencies can be addressed without causing an immediate financial crisis. As of December 31, 2002, 100% of the unreserved fund balance of the General Fund has been designated to meet working capital needs. ENTERPRISE FUNDS Enterprise funds account for the financing of services to the general public in which all or most of the costs involved are paid in the form of charges to the users of the services. The City has three public utilities funds; Water, Sewer and Storm Water, that are operated as enterprise funds and an Arena Fund that is also operated as an enterprise fund. Comparative data for the City's public utility operations and for the Arena Fund operations for the past two years are shown in the following tables: xiii Fund Balance Percent of Year Budget Amount Next Budget 1994 $ 3,812,022 $ 1,258,606 29% 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 The City has determined that it would like to maintain 30 to 50 (or greater) percent of the next operating expenditure budget as a fund balance. Ideally, 50 percent (or greater) of the next budget would be preferred, although concern is being expressed that certain State officials will arbitrarily decide on the appropriate fund balance for municipalities and reduce aid if an undesignated fund balance exists above a certain level. Forty to fifty percent: normally provides adequate working capital to finance General Fund operations until property taxes and State aids are received. The fund balance also provides a certain amount of comfort that unforeseen emergencies can be addressed without causing an immediate financial crisis. As of December 31, 2002, 100% of the unreserved fund balance of the General Fund has been designated to meet working capital needs. ENTERPRISE FUNDS Enterprise funds account for the financing of services to the general public in which all or most of the costs involved are paid in the form of charges to the users of the services. The City has three public utilities funds; Water, Sewer and Storm Water, that are operated as enterprise funds and an Arena Fund that is also operated as an enterprise fund. Comparative data for the City's public utility operations and for the Arena Fund operations for the past two years are shown in the following tables: xiii Operating Revenues Operating Expenses Operating Income (Before Depreciation) Depreciation Expense Operating Income (Loss) (After Depreciation) Non - Operating Revenues (Expenses) Net Income (Loss) Before Transfers and Contributions Transfers In (Out) Capital Contributions Net Income (Loss) Operating Revenues Operating Expenses Operating Income (Loss) (Before Depreciation) Depreciation Expense Operating Income (Loss) (After Depreciation) Non - Operating Revenues (Expenses) Net Income (Loss) Before Transfers and Contributions Transfers In (Out) Capital Contributions Net Income (Loss) Water Sewer 2002 2001 2002 2001 $ 925,159 $ 889,479 $ 988,160 $ 1,005,310 643,439 540,041 729,371 690,265 258,409 241,627 53,529 51,153 281,720 349,438 258,789 315,045 393,397 354,740 622,680 614,368 (111,677) (5,302) (363,891) (299,323) 1,493,048 1,306,758 885,005 797,731 1,381,371 1,301,456 521,114 496,408 70,851 (246,837) (526,518) (204,612) 1,821,961 1,883,753 $ 3,274,183 $ 1,054,619 $ 1,878,349 $ 291,796 Storm Water 2002 2001 Arena 2002 2001 $ 684,500 $ 518,307 $ 303,138 $ 301,277 396,610 296,947 281,937 311,254 287,890 221,360 21,201 (9,977) 258,409 241,627 53,529 51,153 29,481 (20,267) (32,328) (61,130) 896,945 672,361 (10,230) 2,209 926,426 652,094 (42,558) (58,921) (1,569,440) (58,698) (3,500) (3,500) 3,122,743 $ 2,479,729 $ 593,396 $ (46,058) $ (62,421) xiv Depreciation expense is shown for all of the enterprise funds as a separate line item for reporting purposes. In the public utilities funds, the large amounts of infrastructure and the ' related depreciation cannot be reflected in the rates on the utility bills and still be competitive with what other municipalities are charging. During budgeting, capital projects are budgeted for over a 10 -year period and those expenses are reflected in the current utility rates. That way, the capital improvements are made as needed and the utility rates reflect those improvements. ' Depreciation is not shown as a line item during the budgeting process but is reflected in the financial statements. The Arena Fund follows a similar practice and capital improvements are budgeted for and depreciation expense is not. FIDUCIARY OPERATIONS City employees are members of the Public Employees Retirement Association (PERA) of Minnesota. The City also provides two deferred compensation plans created in accordance with Internal Revenue Code Section 457 to employees. Information on the PERA. plan is included in section IV of the Notes to the financial statements. DEBT ADMINISTRATION ' The ratio of net bonded debt to tax capacity and to market value and the amount of net bonded debt per capita are useful indicators of the City's debt position. Figures for City net bonded debt include only the outstanding indebtedness of the City expected to be paid through taxes ' although all of the City's debt, including special assessment bonds, tax increment bonds, revenue bonds, Port Authority bonds and State Aid street bonds, are backed by the general obligation of the City. Overlapping debt figures exclude debt supported by revenues and tax and aid anticipation debt. Overlapping net debt is the City's pro -rata share of bonded indebtedness ' for the County, school districts and other taxing jurisdictions located within the City. This data for the City as of December 31, 2002, was as follows: ' % of % of Tax Market Debt Per Amount Capacity Value Capita City Net Bonded Debt $ 1,843,441 13.6% 0.2% $ 107 Overlapping Net Bonded Debt 19,053,909 140.8% 1.7% 1,102 Total Net Bonded Debt $ 20,897,350 154.4% 1.9% $ 1,209 The City received a rating upgrade from Moody's Investors Service in 2002 from a bond rating of A2 to an improved bond rating of Al. This excellent rating for a City of Rosemount's size and composition has had a positive effect on the sale of the City's bonds by broadening the City's market and lowering the interest rates on those bonds issued by the City. xv CASH MANAGEMENT The City of Rosemount subscribes to the "pooled cash" concept of investing which means that all funds with cash balances participate in an investment pool. This permits some funds to be overdrawn and others to show cash balances when, in fact, the City as a whole has a positive cash balance. This pooled cash concept provides for investing greater amounts of money at more favorable rates. Interest earnings are allocated on all investments and on interest - bearing checking accounts based on amounts available in those areas at the time of interest payments. During 2002, the City earned $1,075,194 from investments in obligations issued by the United States and its agencies, bank certificates of deposits and interest - bearing checking accounts. 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, ail of them benefiting the City, and ultimately, its citizens. xvi INDEPENDENT AUDIT Minnesota Statutes require an annual audit of all accounts, financial records and transactions of all departments of the City by independent certified public accountants. The auditors' report on these financial statements accompanies the report following this letter. It should be noted that ' the audit was conducted in accordance with generally accepted auditing standards and an unqualified opinion was issued. I CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 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, 2001. This was the sixth 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. ACKNOWLEDGMENTS ' 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 Gary Kalstabakken Finance Director Interi ity Administrator 1 I xvi i Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rosemount, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2001 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. OF g STA `" iFS H on ""°" � s President OWAO �� sue, go y *1� 4Ae Executive Director 1 VirchOwM ause &company 1 1 INDEPENDENT AUDITORS' REPORT 1 The Honorable Mayor and Members of the City Council City of Rosemount, Minnesota We have audited the general purpose financial statements of the City of Rosemount, Minnesota, as of and for 1 the year ended December 31, 2002 as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 1 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 general purpose financial statements are free of material misstatement. An audit includes 1 examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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 1 provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Rosemount, Minnesota, as of December 31, 2002, and the results of its 1 operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. 1 Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and account group financial statements and schedules for the year ended December 31, 2002 and the individual fund financial statements for the year ended December 31, 2001 listed in the table of contents are presented for purposes of additional analysis and are not a required part of the 1 general purpose financial statements of the City of Rosemount, Minnesota. The information has been subjected to the auditing procedures applied in the audits of the general purpose financial statements for the years ended December 31, 2002 and 2001, and in our opinion, is fairly stated in all material respects in relation to the general 1 purpose financial statements taken as a whole. The financial information listed in the accompanying table of contents under "Statistical Section" is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City 1 of Rosemount, Minnesota. The information has not been audited by us and, accordingly, we express no opinion on such information. 1 Minneapolis, Minnesota 1 March 13, 2003 L t Virchow, Krausel& Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International THIS PAGE INTENTIONALLY LEFT BLANK GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED FINANCIAL STATEMENTS The combined statements are intended to provide an overview and broad perspective of the City's financial position and operations. These general purpose financial statements present a summary set of information needed to control and analyze operations and to assist in financial planning. I The following combined statements are presented: Combined Balance Sheet-All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances-All Governmental Fund Types. Combined Statement of Revenues, Expenditures, and Changes in Fund ' Balances- Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenditures, and Changes in Retained ' Earnings -All Proprietary Fund Types Combined Statement of Cash Flows-All Proprietary Fund Types L� 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ROSEMOUNT COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNIT December 31, 2002 (With Comparative Totals - Reporting Entity for the Year Ended December 31, 2001) ASSETS AND OTHER DEBITS ASSETS Cash and investments Investment with fiscal agent Receivables Property taxes Customer accounts Special assessments Notes Due from other governmental units Inventories and prepaid items Advances to other funds Fixed assets, net of accumulated depreciation, if applicable OTHER DEBITS Amount available in debt service fund Amount to be provided for retirement of general obligation debt TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITYAND OTHER CREDITS Governmental Fund Types Special Debt Capital General Revenue Service Projects $ 5,213,909 $ 2,584,419 $ 15,458,549 $ 4,067,279 - 691,341 - 416,716 - 3,910 22,405 - 77,355 77,825 4,028,810 40,784 $ 5,752,674 $ 2,684,649 $ 20,178,700 $ 4,067,279 LIABILITIES Accounts payable $ 170,898 $ 693 $ $ 150,465 Compensated absences payable - - - Accrued liabilities 102,928 - Contracts payable - 841,306 Advances from other funds - 260,107 Deposits payable 217,485 - - Deferred revenues 134,707 77,825 4,028,644 Accrued interest - - - Bonds payable net of unamortized discount Lease obligation Total Liabilities 626,018 338,625 4,028,644 991,771 EQUITY AND OTHER CREDITS Contributed capital - - _ - Investment in general fixed assets Retained earnings - reserved Retained earnings - unreserved Fund balances Reserved for Prepaid items - Advances from other funds - Capital projects - 3,075,508 Special projects - 442,801 - Encumbrances 67,352 - Debt service - 16,150,056 Unreserved Designated 5,059,304 - Undesignated 1,903,223 - TotalEquity andOtherCredits 5,126,656 2,346,024 16,150,056 3,075,508 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 5,752,674 $ 2.684,649 $ 20,178,700 $ 4,067,279 See accompanying notes to financial statements -2- EXHIBIT 1 $ 14,064,269 $ 564,342 $ $ Total $ 4,606,306 Proprietary Account Groups Primary Component Fund Types General General Government Unit Total Reporting Entity Internal Fixed Long -Term (Memorandum Port (Memorandum Only) Enterprise Service Assets Obligations Only) Authority 2002 2001 $ 14,064,269 $ 564,342 $ $ $ 41,952,767 $ 4,606,306 $ 46,559,073 $ 42,676,487 - - 691,341 2,333,811 3,025,152 3,043,777 - 416,716 - 416,716 356,743 555,436 581,751 581,751 617,733 272,864 4,456,854 194,407 4,651,261 2,241,411 - - 1,051,547 1,051,547 1,158,767 14,288 - 55,072 - 55,072 94,521 54,585 69,620 124,205 473 124,678 135,393 368,485 - 368,485 - 368,485 383,319 61,266,674 19,430,809 80,697,483 492,530 81,190,013 74,385,154 - - 16,150,056 16,150,056 5,122,998 21,273,054 22,865,998 - 9,057,100 9,057,100 6,657,002 15,714,102 12,654,398 $ 76,596,601 $ 633,962 $ 19,430,809 $ 25,207,156 $ 154,551,830 $ 20,459,074 $ 175,010,904 $ 160,613,701 $ 71,663 $ 13,293 $ - $ - $ 407,012 $ 10,447 $ 417,459 $ 894,093 57,673 - 438,426 496,099 - 496,099 448,327 19,742 - - 122,670 - 122,670 95,847 91,244 - 932,550 238,875 1,171,425 1,200,639 108,378 - 368,485 - 368,485 383,319 - 217,485 4,898 222,383 41,757 266,623 4,507,799 1,245,954 5,753,753 3,385,460 126,917 - 126,917 126,917 118,301 6,470,579 23,585,000 30,055,579 11,780,000 41,835,579 40,317,997 1,183,730 1,183,730 1,183,730 1,334,739 7,212,819 13,293 25,207,156 38,418,326 13,280,174 51,698,500 48,220,479 40,483,429 40,483,429 - 40,483,429 41,487,171 - - 19,430,809 - 19,430,809 492,530 19,923,339 19,328,753 6,996,862 - - 6,996,862 - 6,996,862 6,261,059 21,903,491 620,669 22,524,160 - 22,524,160 14,515,845 - - - 473 473 26,697 - - - - 270,578 3,075,508 3,075,508 1,990,344 442,801 442,801 197,603 67,352 - 67,352 131,020 16,150,056 5,122,998 21,273,054 22,865,998 5,059,304 - 5,059,304 3,608,285 1,903,223 1,562,899 3,466,122 1,709,869 69,383,782 620,669 19,430,809 116,1 7,178,900 123,312,404 112,393,222 $ 76,596,601 $ 633,962 $ 19,430,809 $ 25,207,156 $ 154,551,830 $ 20,459,074 $ 175,010,904 $ 160,613,701 -3- CITY OF ROSEMOUNT COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT For the Year Ended December 31, 2002 (With Comparative Totals - Reporting Entity for the Year Ended December 31, 2001) See accompanying notes to financial statements. -4- Governmental Fund Types Special Debt Capital General Revenue Service Projects REVENUES Taxes $ 4,556,291 $ 1,002,100 $ 312,176 $ Municipal state aid (MSA) - - 86,148 Tax increments - - Intergovernmental revenues 666,057 - Licenses and permits 797,688 - Fines and forfeitures 85,835 - - Special assessments 82,103 19,422 891,857 Charges for services 702,775 184,341 - Investment income 110,576 40,079 384,612 59,560 Net increase in the fair value of investments 18,548 406 17,289 - Miscellaneous 288,437 451,120 - 7,622,559 Total Revenues 7,308,310 1,697,468 1,692,082 7,682,119 EXPENDITURES Current General government 1,557,734 29,075 - - Public safety 1,884,975 - Public works 1,834,122 - Parks and recreation 785,226 - Lease payments - 13,529 - - Other - 297 257,907 Capital Outlay 319,634 - 10,566,847 Debt Service Principal retirement 151,009 3,285,000 - Interest 79,952 1,009,700 Fiscal agent fees - 4,512 - Total Expenditures 6,062,057 593,199 4,299,509 10,824,754 Excess (deficiency) of revenues over expenditures 1,246,253 1,104,269 (2,607,427) (3,142,635) OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt - 95,844 3,306,563 Sale of general fixed assets - 11,755 - - Operating transfers in 3,500 10,958 70,000 1,989,182 Operating transfers out - (103,575) - - Operating transfers in - primary government - Operating transfers out - primary government - - - Operating transfers in - component unit 111,300 - Operating transfers out - component unit - - Total Other Financing Sources (Uses) 114,800 (80,862) 165,844 5,295,745 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 1,361,053 1,023,407 (2,441,583) 2,153,110 BEGINNING FUND BALANCES 3,765,603 1,294,699 18,537,163 1,990,344 Prior period adjustment - - - - FUND BALANCES - January 1 3,765,603 1,294,699 18,537,163 1,990,344 Equity transfers - 27,918 54,476 (1,067,946) FUND BALANCES - December 31 $ 5,126,656 $ 2,346,024 $ 16,150,056 $ 3,075,508 See accompanying notes to financial statements. -4- EXHIBIT 2 Totals 3,402,407 1,789,837 5,192,244 Primary Component Totals 109,146 Government Unit Reporting Entity (Memoran- Port (Memorandum Only) dum Only) Authority 2002 2001 (337,018) (2,671,311) $ 5,870,567 $ 990,396 $ 6,860,963 $5,264,277 86,148 - 86,148 90,066 - 155,682 155,682 196,018 666,057 144,800 810,857 1,224,455 797,688 - 797,688 790,396 85,835 85,835 88,524 993,382 993,382 1,635,841 887,116 - 887,116 1,043,914 594,827 349,500 944,327 1,975,988 36,243 - 36,243 8,054 8,362,116 641,874 9,003,990 3,238,301 18,379,979 2,282,252 20,662,231 15,555,834 1,586,809 353,381 1,940,190 1,718,760 1,884,975 - 1,884,975 1,711,407 1,834,122 1,834,122 1,676,886 785,226 785,226 751,673 13,529 13,529 14,028 258,204 - 258,204 118,233 10,886,481 2,274, 514 13,160,995 10,162,680 3,436,009 330,000 3,766,009 2,843,286 1,089,652 531,885 1,621,537 1,547,053 4,512 1,835 6,347 16,542 21,779,519 3,491,615 25,271,134 20,560,548 (3,399,540) (1,209,363) (4,608,903) (5,004,714) See accompanying notes to financial statements. 3,402,407 1,789,837 5,192,244 4,937,134 ' 11,755 109,146 120,901 3,058 2,073,640 233,443 2,307,083 2,684,958 ' (103,575) (233,443) (337,018) (2,671,311) ' (985,552) 125,000 (166,800) 125,000 (166,800) 1,137,063 111,300 6,686,370 111,300 1 30,800,394 - - - (637,063) 5,495,527 1,857,183 7,352,710 5,453,839 See accompanying notes to financial statements. 2,095,987 647,820 2,743,807 449,125 ' 25,587,809 5,212,585 30,800,394 30,432,976 (81,707) ' 25,587,809 5,212,585 825,965 30,800,394 30,351,269 (985,552) (159,587) $ 26,698,244 $ 6,686,370 1 33,384,614 1 30,800,394 See accompanying notes to financial statements. CITY OF ROSEMOUNT COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) GENERAL AND ANNUALLY ADOPTED SPECIAL REVENUE FUNDS For the Year Ended December 31, 2002 General Fund REVENUES Taxes Intergovernmental revenues Licenses and permits Fines and forfeitures Special assessments Charges for services Investment income Net increase in the fair value of investments Donations and other Miscellaneous Total Revenues EXPENDITURES Current General government Public safety Public works Parks and recreation Total Expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out Operating transfers in - component unit Total Other Financing Sources (Uses) Excess of revenues and other financing sources over expenditures and other financing uses Reconciliation to GAAP basis elimination of encumbrances, net FUND BALANCES - January 1 Equity transfers FUND BALANCES - December 31 1,670,600 1,526,727 Variance - 1,942,800 1,884,975 Favorable Budget Actual (Unfavorable) $ 4,527,588 $ 4,556,291 $ 28,703 586,312 666,057 79,745 478,500 797,688 319,188 90,000 85,835 (4,165) - 82,103 82,103 481,400 702,775 221,375 121,000 110,576 (10,424) - 18,548 18,548 - 31,349 31,349 213,300 257,088 43,788 6,498,100 7,308,310 810,210 1,670,600 1,526,727 143,873 1,942,800 1,884,975 57,825 2,025,300 1,801,461 223,839 862,900 785,226 77,674 6,501,600 5,998,389 503,211 (3,500) 1,309,921 1,313,421 3,500 3,500 - - 111,300 111,300 3,500 114,800 - $ - 1,424,721 $ 1,424,721 (63,668) 3,765,603 $ 5,126,656 See accompanying notes to financial statements. EXHIBIT 3 ' 2,500 Annually Adopted Special Revenue Funds 1,076,600 954,969 121,631 Variance- Favorable 60,600 Budget Actual (Unfavorable) ' $ 1,002,100 $ 1,002,100 $ 17,000 19,422 2,422 ' 90,000 160,859 70,859 28,000 26,431 (1,569) 100 406 306 ' - 34,906 34,906 11,755 11,755 1,137,200 1,255,879 118,679 r 1 J ' 10,958 10,958 (103,575) (103,575) - (92,617) (92,617) $ 60,600 208,293 $ 147,693 ' 459,199 ' 833,843 27,918 ' $ 1,529,253 I See accompanying notes to financial statements. 2,500 2,500 - 1,074,100 952,469 121,631 1,076,600 954,969 121,631 ' 60,600 300,910 240,310 ' 10,958 10,958 (103,575) (103,575) - (92,617) (92,617) $ 60,600 208,293 $ 147,693 ' 459,199 ' 833,843 27,918 ' $ 1,529,253 I See accompanying notes to financial statements. CITY OF ROSEMOUNT EXHIBIT COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 2002 (With Comparative Totals - Reporting Entity for the Year Ended December 31, 2001) Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 2002 2001 OPERATING REVENUES Charges for services Water meter maintenance Water meters Miscellaneous Donations and other Total Operating Revenues OPERATING EXPENSES Personal services Supplies Professional services & other charges Other services and charges Metro sewer charges Insurance expense Total Operating Expenses OPERATING INCOME (LOSS) BEFORE DEPRECIATION $ 2,632,611 $ $ 2,632,611 $ 2,582,105 - 200,000 - 5,709 113,471 - 113,471 126,559 154,875 16,832 154,875 - - 24,451 24,451 23,392 2,900,957 24,451 2,925,408 2,737,765 190,819 - 190,819 178,966 685,572 - 685,572 615,090 275,835 33,093 308,928 357,809 199,728 28,403 228,131 259,626 429,341 - 429,341 215,597 460,881 - 460,881 427,042 - 186,336 186,336 150,781 2,051,357 247,832 2,299,189 2,025,945 849,600 (223,381) 626,219 711,820 Depreciation Operating Loss NONOPERATING REVENUES (EXPENSES) Connection fees Property taxes Special assessments Intergovernmental Investment income Net increase in the fair value of investments Loss from disposal of fixed assets Surcharges and penalties Interest expense and fiscal agent fees Total Nonoperating Revenues (1,328,015) (1,328,015) (1,261,888) (478,415) (223,381) (701,796) (550,068) 2,660,403 - 2,660,403 2,013,209 - 200,000 200,000 190,000 227,584 - 227,584 247,654 443,496 16,832 460,328 617,616 71,842 1,135 72,977 25,317 - - - (2,851) 190,819 - 190,819 178,966 (318,418) 1,003,742 (318,418) (279,517) 3,275,726 217,967 3,493,693 2,990,394 Income (Loss) Before Contributions, Transfers and Depreciation on contributed assets 2,797,311 (5,414) 2,791,897 2,440,326 Capital contributions - developers 6,828,457 - 6,828,457 3,777,581 Operating transfers in 3,979,571 - 3,979,571 844,829 Operating transfers out (5,949,636) - (5,949,636) (858,476) Operating transfers in - component unit 55,500 - 55,500 Operating transfers out - component unit (125,000) - (125,000) (500,000) Depreciation on contributed assets 1,003,742 1,003,742 1,050,943 Total contributions, transfers, and depreciation on contributed assets 5,792,634 5,792,634 4,314,877 INCREASE (DECREASE) IN RETAINED EARNINGS 8,589,945 (5,414) 8,584,531 6,755,203 RETAINED EARNINGS - January 1 20,150,821 626,083 20,776,904 14,021,701 Equity transfers 159,587 159,587 - See accompanying notes to financial statements. -8- I CITY OF ROSEMOUNT EXHIBIT 5 COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 2002 2001 $ (478,415) $ (223,381) S (701,796) $ (550,068) 1,328,015 - 1,328,015 1,261,888 3,120,376 200,001 3,320,377 2,629,829 12,616 16,171 28,787 9,592 88,701 - 88,701 169,645 41,361 41,361 (28,541) 369 (15,879) (15,510) (33,756) 127,574 - 127,574 18,283 (31,187) (975) (32,162) 36,052 9,506 - 9,506 15,184 10,471 10,471 (8,310) 44,331 - 44,331 (107,368) 4,273,718 (24,063) 4,249,655 3,412,430 ' CASH FLOWS FROM OPERATING ACTIVITIES Operating loss Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities ' Depreciation Nonoperating revenues Change in Assets and Liabilities Accounts receivable Special assessments receivable Due from other governments Inventories and prepaid items Advances to other funds Accounts payable Accrued liabilities Advances from other funds Deferred revenues Net Cash Provided (Used) by Operating Activities ' CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers in Operating transfers out Net Cash Used by Noncapital Financing Activitie:> CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES ' Capital contributions Purchases of capital assets Proceeds from long -term debt Principal paid on long -term debt Interest paid on long -term debt Net Cash Used by Capital and Related Financing Activities ' CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net Cash Provided by Investing Activities 4,035,071 4,035,071 - (6,063,678) (6,063,678) (513,647) (2,028,607) (2,028,607) (513,647) 6,828,457 6,828,457 3,777,581 (7,828,291) (7,828,291) (6,412,765) 1,195,000 1,195,000 1,945,000 (1,252,418) - (1,252,418) (402,498) (309,802) - (309,802) (262,845) (1,367,054) - (1,367,054) (1,355,527) 462,810 17,966 480,776 642,933 462,810 17,966 480,776 642,933 Net Increase(Decrease)in Cash and Cash Equivalents 1,340,867 (6,097) 1,334,770 2,186,189 CASH AND CASH EQUIVALENTS - January 1 12,723,402 570,439 13,293,841 11,107,652 CASH AND CASH EQUIVALENTS - DECEMBER 31 S 14,064,269 $ 564,342 $ 14,628,611 S 13,293,841 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Contributions of capital assets from government $ 159,587 S - S 159,587 $ - See accompanying notes to financial statements. 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PUB 1j10 ay} ;uasaid sluawa}e ;s leloueug asayl 'saldiouud 6ullun000e pa}daooe lilejauab lq pajlnbaa sy AMIJ3 6ui:podaU •y - MOlaq paquosap aje 1,410 ayl jo seiollod 6ullun000e jueoijlubis ajow ayl '(BSdJ) Pjeoe spiepuelS bui ;un000y leJuawwanoO ayj lq sjiun leluawuaano6 of paildde se 'saldlo -uud 6ul}un000e pa;daooe lllejaua6 yliM l4iwjo ;uoo ui pajedaid uaaq aney 110 ayj 10 Sjuawaje ;s leloueuy aq l *Saeal oM} Dana eoeld a>Iej suopoa18 •saagwaw IlounoO ayp jo oMq jo swaa4 ay} y}iM 6ulpouloo wja4 weal -inoj e sanias aolew ay4 pue swja} paja66e ;s jeal -jno� anuas sjagwaw liounoO �4!0 'A4!0 ay} 40 SJa40A lq a6jel ;e papala Ilouno0 /4!0 jagwaw -any e ;o sisisuoo 1poq 6u1wano6 ayl - sajnje4s pue sMel elosauuiw aigeolldde of juensind sa}ejado pue pewao; seM ( „110„ ay;) ejosauuin ' ;unowasod jo �4!0 ayl 6310110d ONUNf1O00b' 1N`dO1dINOIS dO miviNiNns ZOOZ ' 6£ jagwaoaa S1N31A!31d1S IVIONVNl.1 3H1 O1 S31ON IWOW3SO2I dO X1110 CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 RELATED ORGANIZATIONS: None JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS: None. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self - balancing set of accounts. Fund accounting segre- gates funds according to their intended purpose and is used to aid management in demonstrating compli- ance with finance related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental Funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available "). "Measurable" means the amount of the trans- action can be determined and "available" means collectible within the current period. The City considers all revenues available if they are collected within 60 days after year -end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long -term debt which is rec- ognized when due, and certain compensated absences and claims or judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Examples of revenues susceptible to accrual include property taxes, franchise fees, licenses, interest and special assessments. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. Intergovernmental aids and grants are recognized as revenues in the period the city is entitled to the re- sources 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. Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expend for specific purposes (not including major capital projects). The debt service funds account for the servicing of general long -term debt not being financed by proprie- tary funds. The capital project funds account for the acquisition of fixed assets or construction of major capital pro- jects not being financed by proprietary funds. -11- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 ' Proprietary Funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. ' "Accounting Proprietary Funds are reported in accordance with GASB Statement No. 20, and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting ". This standard requires that all applicable Governmental Accounting Standards Board (GASB) pronounce- ' ments, Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Princi- ples Board (APB) Opinions, and Accounting Research Bulletins (ARBs) issued on or before November 30, 1989 be applied to proprietary activities unless they (FASB Statements and Interpretations, APB Opinions, ' and ARBs) conflict with or contradict GASB pronouncements. GASB Statement No. 20 also states that proprietary activities may elect to apply all FASB Statements and Interpretations issued after November 30, 1989, except for those that conflict with or contradict GASB pro- nouncements. Proprietary activities under the control of the City will not elect to apply FASB Statements and Interpretations issued after November 30, 1989, unless they are adopted by GASB. Proprietary funds include the following fund types: Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the City has decided that the determination of revenues earned, costs incurred and /or net income is necessary for management accountability. Internal service funds account for operations that provide services to other departments or agencies of the ' City, or to other governments, on a cost - reimbursement basis. Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent on behalf of oth- ers. Agency funds are custodial in nature and do not present results of operations or have a measurement fo- cus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to ' account for assets that the government holds for others in an agency capacity. Account Groups. The general fixed assets account group is used to account for fixed assets not ac- ' counted for in proprietary funds. The general long -term debt account group is used to account for general long -term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Assets, Liabilities and Equity 1. Cash and Investments (including cash equivalents) ' The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short- term investments with original maturities of three months or less from the date of acquisition. A single consolidated bank account has been established in a local bank into which monies are deposited and from which most disbursements are made. In addition, investment purchases are charged and maturi- ties 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. -12- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 State statutes authorize the City to invest in 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 pri- mary reporting dealer in U.S. Government Securities to the Federal Reserve Bank of New York, or certain Minnesota brokers /dealers, general obligations of the State of Minnesota or any of its munici- palities, 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, 2002, are stated at fair value. Fair values were based on the December 31, 2002 Wall Street Journal. The City considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents when preparing the proprietary fund type cash flow statements. The City considers certificates of deposit to be demand deposits of financial institutions, and therefore are considered 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. 2. Receivables and Payables Transactions between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivables /payables" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial re- sources. The City uses the allowance method to estimate the portion of trade and property tax receivables that are considered uncollectible. Property taxes receivable have been shown net of an allowance of $66,920 for delinquent property taxes receivable. 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 prop- erty 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 reve- nue in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settle- ments to cities and other taxing districts five times per year, in January, April, June, July and Decem- ber. 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 ex- penditures. -13- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 3. Special Assessments Receivable �n LI I LJ The restricted assets at December 31, 2002, included in Investment with fiscal agent on the balance sheet, represent crossover refunding bond proceeds held in escrow. 6. Fixed Assets Fixed assets used in governmental fund types of the City are recorded in the general fixed asset ac- count group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value at the date of donation. Assets in the general fixed assets ac- count group are not depreciated. Interest incurred during construction is not capitalized on general fixed assets. Public domain (infrastructure) general fixed assets including roads, bridges, sidewalks and other assets are excluded from general fixed assets, as such items are immovable and of value only to the City. The cost of normal maintenance and repairs that do not add to the value of an asset or materially ex- tend an asset's life is not included in the general fixed assets account group or capitalized in the pro- prietary funds. Fixed assets of proprietary funds are recorded at historical cost or, if contributed by developers, at the fair market value on the date contributed in the Enterprise Fund. Depreciation is charged as an ex- pense against operations, and accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated lives using the straight -line method. The estimated useful lives are as follows: Assets Buildings Machinery and Equipment Other Improvements 30 -65 years 4 -20 years 60 years -14- Special assessments are levied against the benefited properties for the assessable costs of special ' assessment improvement projects in accordance with State Statutes. The City usually adopts the as- sessment rolls when the individual projects are complete. The assessments are collectible over a term of years generally consistent with the term of years of the related bond issue. Collection of annual in- ' stallments (including interest) is handled by the County in the same manner as property taxes. Prop- erty owners are allowed to prepay total future installments without interest or prepayment penalties. ' Special assessments receivable includes the following components: • Current - amounts collected by Dakota County and not remitted to the City. • Delinquent - amounts billed to property owners but not paid. • Deferred - assessment installments, which will be billed to property owners in future years. • Other - assessments for which payment has been postponed based on Council action. ' 4. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 5. Restricted Assets �n LI I LJ The restricted assets at December 31, 2002, included in Investment with fiscal agent on the balance sheet, represent crossover refunding bond proceeds held in escrow. 6. Fixed Assets Fixed assets used in governmental fund types of the City are recorded in the general fixed asset ac- count group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value at the date of donation. Assets in the general fixed assets ac- count group are not depreciated. Interest incurred during construction is not capitalized on general fixed assets. Public domain (infrastructure) general fixed assets including roads, bridges, sidewalks and other assets are excluded from general fixed assets, as such items are immovable and of value only to the City. The cost of normal maintenance and repairs that do not add to the value of an asset or materially ex- tend an asset's life is not included in the general fixed assets account group or capitalized in the pro- prietary funds. Fixed assets of proprietary funds are recorded at historical cost or, if contributed by developers, at the fair market value on the date contributed in the Enterprise Fund. Depreciation is charged as an ex- pense against operations, and accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated lives using the straight -line method. The estimated useful lives are as follows: Assets Buildings Machinery and Equipment Other Improvements 30 -65 years 4 -20 years 60 years -14- -S6- . spunj jaylo jo siawolsno 'siadolanap wOJJ ' suoilnquluoo lejideo pue sluej6 Iejideo g5no ql paainboe /gmba sluesaidaj le}ideo palnquluoo s,punj �Je}aijdojd aqj •a6uego o} joa(gns aje;egl sueld juawa6euew an14eJu91 }uasaidaa lginba punj jo suoil - eubisa4 •suoijoulsai 4ed -pjigl apislno o} paliwil aje �4inba pun; jo suoijenuasa�j •asodind oUioads e JO} pale6ai6as llle6al aie jo algepdoadde jou aie jegj slunowe luesaidaj lainba punj jo suogenuasa�j ' 14inb3 pun3 •6 ' pauiwjalap ueaq jou seq 6uipuelslno }unowe ayl JanaMOq '6uipue}slno aq of jeadde ley} s,afl y}iM sesijdja;ua ssauisnq alenud xis jo aieMe si X10 ayl - sluawa}els leioueug builuedw000e ayj ul sal; - iligeil se pa:podai aq jou pinoM spuoq ay} 'llbuipj000y •Al10 aqj jo sseupalgapui alnlilsuoo jou op pue 'sjoafad paleioosse ay; uo sluewaaa6e anuanaj jo sabe6pow !q painoas aje s,82i1 •sesijdaalue ssau ' -isnq alenud jo jUauaq aqj jol (82j1) spuoq anuanaa leuisnpui ;o aouenssi ayl anoidde Aew )�i0 ayl •sa6jego paiaajap se papodai aje slsoo aouenssl ' }unoosip jo wniwaid puoq alqeoildde aqj jo lau paliodai aje elgeled spuo8 •poy}aw IsaJaIui an110aga aqj 6uisn spuoq ayj Jo Gill ayj nano pGZIIJO.ue pue paaJajap We 'slsoo aouenssi se IIaM se 's;unoosip pue swniwaid puoq 'sadAl punk tie;aijdad ao3 •samlipuadxa loafoid le}ideo se pa:podai ale 'paniao -ai spaaooid 4au lenjoe aqj waj pleggl!m di uana 'slsoo aouenssl - junoosip jo wniwajd algeoildde aqj jo }au aoinos buioueug jay }o ue se paliodai aje speaooid puog •poijad jua.uno 9141 6uiinp paziu -600aa ale 'slsoo anssi jgap se 11aM se 'slunoosip pue swniwajd puoq 'sadfq punj lejuawwano6 JO3 I: - spun] aleudoidde ay; w saqiligeil se paliodai aje spun] iJe}audad !q peoueug suoilebilgo jaglo pue }qap w.ial -6uog •dna6 jun000e }qap weal -buol lejau96 eqj ui pa:podai osle aje saoinosai leioueug elgeliene juaiino y;iM peoueuU aq of paloadxe jou suoile6ilgo punk leIuawuJan06 Jay }o uie}P90 •dnoj6 }unoo -oe }qap weal -buol lejaua6 aqj ui amen 908118 spun] IeIuawwan06 Jo jgap wjaj -6uol s:podai 1410 ayl ;gaQ;inpuo0/suoije6iigO waa; -6uo - 1 - g - Alaliugapui pieMjoj paiaaeo aq !ew slenjooe Aed �oiS •suoijnlosaj pue s}oei} -uoo asegj Aq pawano6 aye slenjooe awil dwoo pue uoiJeoen JOJ p.ientioj paweo sjunowy •algeoildde se suoilnlosai X10 pue sloeiluoo uoiun uodn paseq aje slenjooe (ed ibis pue 'awil dwoo 'uoileOen •slunowe asagl jol pa:podai si ajnlipuadxa ON •dnoj6 ;un000e lgap weal -buol lejaua6 aqj ui pa:podai ale saoinosai leio -ueug algeliene algepuadxa ql!m palepinbil aq o} paloadxa jou s}unowy -Ii Aed iliM ;eql punj IeIuawwa -nob ay} jo �4i1igeil punj e pue ajn}ipuadxe ue se pa:podai si saoinosai leioueug algeliene algepuad -xa ql!m palepinbil aq o; pajoadxe si ;eqj awil dwoo pue Alois 'uoileoen •�4i1igeil punj a se paliodai pue spun] tielaudoid ui paiinoui uagm panuooe si awil dwoo pue � Ois '=Ieoen •slgauaq awil dwoo pue ibis 'uoi1eOen pasnun Inq pawea aleinwnooe of sa@Aoldwe awil-11n; }iwjad of Aoilod sA!0 aqj si 11 saouesgV palesuadwo0 •L •pazilejideo seM auou goigm jo 'pa.iinoui seM asuadxa Isaialui do tOZ'66Z $ 'aea! eqj buunQ •paleioajdep si lasse pa }elaj ay} se siseq awes aqj uo paziliowe si isoo isaialui pezilelide0 •pouad awes ayj JanO spaaooid pa}sanui uo pawea IsaJaIui U1iM joafoid aqj jo uoilaldwoo lilun bui - Mojjoq aqj ;o alep aqj woj pannoui asuadxa Isaialui 6ui:pasgo (q palelnoleo si pezile}ideo aq of Ise -jajui }o junowe aqj - }qep }dwaxe xel qj!m pajinboe fqjado.id punj asudjalue uo pazilelideo si Isaja}ul •slasse Bons jo }soo leui6uo aqj uegj jeglej slasse painquluoo jo amen � ooq lau aqj spaljaj jun000e uoilnqu }uoo aqj 'Al}uenbasuo0 •seldiouud builun000e paid000e lliejaua6 qj!m aouep -a000e ui s6uiwea pauielai uegl jagjej jun000e lejideo palnqu }uoo ay} Isuiebe paljajsueal Allenjuana si uoileioaidep sigl 'aanaMOq `s}uawalels 6uilejado eqj ui uMogs si slasse pa;nquluoo uo uoileioaJda4 ZOOZ ' 4£ jagwaoaQ S1N3N31`d1S gb'10NVN13 3H1 Ol S310N lNnOW3SO2l 30 AllO 1 II u I CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 D. Interfund Transactions Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as a re- duction of expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi - external and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. E. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financial information and are presented only to facilitate financial analy- sis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. F. Risk Management The City is exposed to various risks of loss related to tort liabilities; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has purchased com- mercial insurance which provides for these various risks of loss. Settled claims have not exceeded insur- ance coverage in any of the past three fiscal years. The City has established an Insurance Fund to account for and finance its 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. The Insurance Fund is reported as an internal service fund in the City's financial statements. At December 31, 2002 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. G. Comparative Data /Reclassification Comparative total data for the prior year has been presented in selected sections of the accompanying fi- nancial statements in order to provide an understanding of the changes in the City's financial position and operations. Certain amounts presented in the prior year data have been reclassified in order to be consis- tent with the current year presentation. H. Estimates ' The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial state- ' ments and the reported amounts of revenues and expenditures during the reported period. Actual results could differ from those estimates. 1 -16- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 11. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Annual budgets for the general fund and three special revenue funds, Building CIP fund, Street CIP fund and Equipment CIP fund, are adopted on a basis of accounting consistent with generally accepted accounting principles (GAAP) with departures from GAAP for encumbrances. 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 alter- natively achieved through general obligation bond indenture provisions. On or before July 15 of each year, all agencies of the government submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 15, the proposed budget is presented to the City Council for review and adoption of a preliminary levy. The City Council holds public hearings and a final budget must be prepared and adopted no later than December 20. 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 appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. The City Council approved several supplemental budgetary appropriations throughout the year, but they were not considered material. Encumbrance accounting is employed in the budgeted governmental funds. Encumbrances (e.g., pur- chase orders, contracts) do not constitute expenditures or liabilities. Encumbrances outstanding at year- end are reported as reservations of fund balance for subsequent year expenditures based on the encum- bered appropriation authority carried over. All unencumbered appropriations lapse at year -end. B. Excess of Expenditures Over Appropriations During 2002, expenditures and other financing uses did not exceed appropriations in any fund. C. Deficit Fund Equity The following special revenue fund had a deficit fund balance, at December 31, 2002: Amount Building CIP The City will finance this deficit through external or internal sources in future years. III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Cash and Investments $ (6,055) 1 The City maintains a consolidated cash management pool that is available for use by all funds. Each fund's portion of the consolidated cash pool is displayed on the combined balance sheet as "Cash and In- I vestments ". -17- 1 [I CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 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 depos- its 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 year -end, the City's carrying amount of cash and certificates of deposit was $40,176,689 and the bank balance, was $44,209,824. All of the deposits were covered by federal depository insurance (FDIC) or col- lateralized by security held by the City's agent in the City's name. The City's investments are categorized in the following table to give an indication of the level of custodial risk assumed at year -end, as summarized below: Category 1 - includes investments that are insured or registered or for which the securities are 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 for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. Cash and investment balances at December 31, 2002, are categorized as follows: At year -end, the Port Authority had cash and investments totaling $3,314,836. The Port Authority's cash and investments are included in the cash and investment accounts of the City and therefore are accounted for in the previous table assessing the level of risk assumed at year end. -18- Risk Category Carrying 1 2 3 Amount U.S. Government Securities $ 6,379,984 $ - $ - $ 6,379,984 Total Investments $ 6,379,984 $ - $ - $ 6,379,984 Deposits 40,176,689 Petty Cash 2,400 Total Cash and Investments $ 46,559,073 Investments Held in Trust at December 31, 2002: Investments with Refunding Escrow Agent $ 3,025,152 $ - $ - $ 3,025,152 At year -end, the Port Authority had cash and investments totaling $3,314,836. The Port Authority's cash and investments are included in the cash and investment accounts of the City and therefore are accounted for in the previous table assessing the level of risk assumed at year end. -18- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 B. Receivables Receivables as of December 31, 2002, net of the applicable allowances for uncollectible accounts, are as follows: $ 1,051,547 The following is a schedule of maturities for the two installment obligations discussed above: Year Ending Total Special Debt Internal Primary General Revenue Service Enterprise Service Government Receivables: 103,070 Property taxes $ 416,716 $ - $ - $ - $ - $ 416,716 Accounts receivable 3,910 22,405 - 555,436 - 581,751 Special assessments 77,355 77,825 4,028,810 272,864 - 4,456,854 Intergovernmental 40,784 - - 14,288 - 55,072 Net Accounts Receivable $ 53B 765 $ 100 230 $ 4.028.810 $ 842 588 1 - S 5 510 393 Notes receivable, reported in Port Authority consisted of two separate installment obligations. The obliga- tions at December 31, 2002, were as follows: Installment obligation payable in monthly principal and interest payments of $3,536. The note bears interest of 1.25°/x, and matures May of 2020. The note is secured by a building. $ 657,192 Installment obligation payable in monthly principal and interest payments of $6,000. The note bears interest of 1.25 %, and is due in September of 2008. The note is secured by a building. 394,355 $ 1,051,547 The following is a schedule of maturities for the two installment obligations discussed above: Year Ending December 31 Amount 2003 $ 101,791 2004 103,070 2005 104,367 2006 105,678 2007 107,008 2008 and thereafter 529,633 Total $ 1,051,547 -19- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 C. Fixed Assets Activity in the general fixed assets account group for the government for the year ended December 31, 2002, was as follows: Activity for Port Authority fund fixed assets for the year ended December 31, 2002, was as follows: January 1, December 31, 2002 Additions Deletions 2002 Land January 1, 254,235 $ 69,300 $ December 31, $ 312,472 20 Ad ditions Deletions 20 02 Land $ 2,327,272 $ 160,192 $ - $ 2,487,464 Land Improvements 710,072 11,073 - 721,145 Buildings 9,558,024 345,562 1,709 9,901,877 Machinery and Equipment 3,758,801 278,465 221,187 3,816,079 Vehicles 2,605,991 27,910 129,657 2,504,244 $ 179,155 $ Total $ 18,960,160 $ 823,202 $ 352,553 $ 19,430,809 Activity for Port Authority fund fixed assets for the year ended December 31, 2002, was as follows: January 1, December 31, 2002 Additions Deletions 2002 Land $ 254,235 $ 69,300 $ 11,063 $ 312,472 Buildings 95,738 65,700 - 161,438 Machinery and Equipment 18,620 - - 18,620 Total $ 368,593 $ 135,000 $ 11,063 $ 492,530 The following is a summary of proprietary fund type fixed assets for the City at December 31, 2002: Water Sewer Storm Water Arena Total Land $ 269,342 $ - $ 179,155 $ - $ 448,497 Buildings 2,485,225 197,431 853,891 2,360,000 5,896,547 Mains and Lines 3,357,770 2,074,479 3,443,739 - 8,875,988 Other Improvements 15,709,459 36,983,749 12,550,029 - 65,243,237 Machinery and Equipment 973,318 316,440 122,439 94,598 1,506,795 Construction in Progress 1,871,836 2,203,619 4,136,021 - 8,211,476 Less Accumulated ' Depreciation Net Fixed Assets 1 (6,561,720) (19,009,281) (2,919,279) (425,586) (28,915,866) $ 18,105,320 $ 22,766,437 $ 18,365,995 $ 2,029,012 $ 61,266,674 D. Inter Receivable and Payable There were no interfund balances as of December 31, 2002. E. Interfund Advances The following is a schedule of interfund advances as of December 31, 2002: Receivable Fund Payable Funds Amount Sewer Building CIP $ 260,107 Sewer Water 108,378 $ 368,485 -20- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 F. Long -Term Debt The City issues general obligation bonds and certificates of indebtedness to provide funds for the acquisi- tion and construction of major capital facilities. In addition, general obligation bonds have been issued to refund both general obligation and revenue bonds. All General Obligation Bonds are special assessment, property tax, revenue or state aid supported and are backed by the full faith and credit of the City. Bonds Payable at December 31, 2002, comprise the following individual issues: Proprietary Funds $945,000 Water Rev. Refunding Bonds, Series 1993C 3.8% to 5.0% Interest $100,000 to $140,000 395,000 Outstanding 1996 to 2005 Rates Maturities Installment Amounts 12/31/02 General Obligation Bonds: 765,000 $500,000 Water Revenue Bonds, Series 1996C 4.3% to 5.1 % 1998 to 2005 $55,000 to $70,000 General Long -Term Debt Account Group: $855,000 Storm Water Revenue Bonds, Series 1999C 4.7% to 5.4% 2002 to 2015 $30,000 to $80,000 780,000 $265,000 Improvement Bonds, Series 1991 B 4.4% to 5.9% 1994 to 2003 $25,000 to $30,000 $ 25,000 $895,000 Improvement Bonds, Series 1992A 3.4% to 5.4% 1994 to 2004 $60,000 to $215,000 125,000 $1,470,000 Improvement Bonds, Series 1992D 3.3% to 6.1% 1995 to 2004 $145,000 to $165,000 290,000 $555,000 Improvement Bonds, Series 1993A 3.0% to 5.0% 1995 to 2005 $30,000 to $50,000 150,000 $1,605,000 Improvement Bonds, Series 1994A 4.9% to 5.5% 1995 to 2006 $130,000 to $200,000 740,000 $1,900,000 Improvement Bonds, Series 1995A 3.9% to 5.3% 1997 to 2007 $135,000 to $165,000 740,000 $2,800,000 Improvement Bonds, Series 1997A 4.2% to 5.0% 2000 to 2009 $250,000 to $335,000 1,880,000 $1,595,000 Improvement Bonds, Series 19978 4.0% to 4.7% 2000 to 2009 $145,000 to $190,000 1,070,000 $1,080,000 Community Center Bonds, Series 1992C 5.0% to 6.6% 1994 to 2013 $20,000 to $90,000 735,000 $1,780,000 Fire Station Bonds, Series 1996A 4.1% to 6.0% 1997 to 2016 $55,000 to $135,000 1,385,000 $725,000 Improvement Refunding Bonds, Series 2001 E 3.1 % to 4.6% 2004 to 2013 $60,000 to $85,000 725,000 $700,000 State Aid Street Bonds, Series 1994C 3.8% to 5.6% 1995 to 2004 $60,000 to $85,000 165,000 $2,010,000 Improvement Bonds, Series 1998A 3.9% to 4.7% 2000 to 2009 $185,000 to $240,000 1,355,000 $2,805,000 Improvement Bonds, Series 1998B 4.0% to 4.5% 2000 to 2010 $250,000 to $335,000 2,175,000 $880,000 Improvement Bonds, Series 1998C 3.5% to 3.9% 2002 to 2005 $170,000 to $190,000 515,000 $3,715,000 Improvement Bonds, Series 1999A 4.3% to 4.8% 2002 to 2011 $200,000 to $545,000 2,970,000 $4,395,000 Improvement Bonds, Series 19998 4.2% to 5.1 % 2002 to 2011 $225,000 to $685,000 3,820,000 $1,325,000 Improvement Bonds, Series 2001A 3.0% to 4.4% 2003 to 2012 $105,000 to $150,000 1,325,000 $3,395,000 Improvement Bonds, Series 2002A 2.3% to 4.0% 2004 to 2013 $50,000 to $655,000 3,395,000 Proprietary Funds $945,000 Water Rev. Refunding Bonds, Series 1993C 3.8% to 5.0% 1998 to 2005 $100,000 to $140,000 395,000 $335,000 Storm Water Revenue Bonds, Series 19948 4.3% to 5.7% 1996 to 2005 $25,000 to $60,000 105,000 $1,035,000 Storm Water Revenue Bonds, Series 19966 4.3% to 5.8% 1998 to 2012 $50,000 to $95,000 765,000 $500,000 Water Revenue Bonds, Series 1996C 4.3% to 5.1 % 1998 to 2005 $55,000 to $70,000 205,000 $855,000 Storm Water Revenue Bonds, Series 1999C 4.7% to 5.4% 2002 to 2015 $30,000 to $80,000 780,000 $1,160,000 Water Revenue Bonds, Series 2000A 4.4% to 5.4% 2002 to 2016 $30,000 to $110,000 1,130,000 $1,140,000 Storm Water Revenue Bonds, Series 2001 B 4.0% to 4.9% 2003 to 2017 $40,000 to $105,000 1,140,000 $805,000 Strm Wtr Rev Refunding Bonds, Series 2001 D 2.5% to 4.0% 2003 to 2008 $120,000 to $145,000 805,000 $1,195,000 Wtr /Strm Wtr Revenue Bonds, Series 20026 3.0% to 4.6% 2004 to 2018 $40,000 to 110,000 1,195,000 Total General Obligation Bonds $ 30,105,000 Changes in long -term debt (at par) for the year ended December 31, 2002, are as follows: January 1, December 31, 2002 Issued Retired 2002 Reported in the General Long -Term Debt Account Group: General Obligation Bonds $ 23,475,000 $ 3,395,000 $ 3,285,000 $ 23,585,000 Capital Lease Obligation 1,334,739 - 151,009 1,183,730 Compensated Absences 395,657 42,769 - 438,426 Reported in Proprietary Funds: General Obligation Revenue Bonds 6,570,000 1,195,000 1,245,000 6,520,000 Total $ 31,775,396 $ 4,632,769 $ 4,681,009 $ 31,727,156 -21- i i CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 General obligation revenue bonds in proprietary funds are reported on the combined balance sheet at $6,470,579, net of discounts. Debt service requirements to maturity, including interest of $6,406,757, are as follows: General Long -Term Obligations Enterprise Account Group Fund Year Ending December 31: 2003 2004 2005 2006 2007 2008 and thereafter Total Revenue G.O. Bonds Bonds Total $ 4,079,871 4,647,291 4,250,750 3,709,156 2,874,486 8,346,230 $ 834,140 897,491 904,291 670,713 666,541 4,630,796 $ 4,914,071 5,544,783 5,155,041 4,379,869 3,541,028 12,977,026 $ 27,907,785 $ 8,603,972 During 2001 the City issued the following crossover refunding bond: $ 36,511,757 • General Obligation Community Center Refunding Bonds, Series 2001E, of $725,000 were issued to fund the remaining maturities on the $1,080,000 General Obligation Community Center Bonds, Series 1992C. The proceeds of the refunding issue noted above were placed in an irrevocable escrow account and were used to purchase U.S. Government Securities. The escrow account investments will provide the resources to cover interest payments on the refunding bond until the crossover date and principal payments on the refunding bond on the crossover date. The refunding bond crosses over on the date the refunded bond is callable. Until the crossover date of February 1, 2003, both the refunded and refunding bonds will be re- ported in the financial statements. Escrow deposits at December 31, 2002 were $691,341. 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 ma- jor capital facilities. -22- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 The long -term debt obligations outstanding in the Port Authority fund as of December 31, 2002, are as fol- lows: Reported in the Port Authority Fund: $3,425,000 Municipal Building, Series 1992E $580,000 Port Authority, Series 1993E $1,630,000 Port Authority, Series 1994A $2,405,000 Municipal Building Refunding, Series 1998A $1,750,000 Port Authority, Series 2000B $2,045,000 Public Facilities Bonds, Series 2001 C $1,795,000 Port Authority, Series 2002C Interest Outstanding Rates Maturities Installment Amounts 12/31/02 3.4% to 6.6% 1994 to 2018 $65,000 to $200,000 $ 2,425,000 4.25% to 6.4% 1996 to 2009 $30,000 to $60,000 345,000 5.2% to 5.88% 1997 to 2011 $75,000 to $155,000 1,125,000 4.3% to 5.15% 2004 to 2018 $125,000 to $185,000 2,405,000 4.5% to 5.0% 2002 to 2011 $110,000 to $220,000 1,640,000 4.0% to 5.0% 2003 to 2022 $25,000 to $160,000 2,045,000 2.25% to 4.0% 2004 to 2013 $140,000 to $210,000 1,795,000 $ 11,780,000 Interest Amount Maturities Rates Outstandina Reported in the Port Authority fund - General Obligation Bonds 2002-2022 3.4 % -6.6% $ 11,780,000 Changes in long -term debt (at par) for the year ended December 31, 2002, reported in the Port Authority fund is as follows: January 1, December 31, 2002 Issued Retired 2002 Reported in the Port Authority Fund $ 10,315,000 $ 1,795,000 $ 330,000 $ 11,780,000 Debt service requirements to maturity, including interest of $4,833,602 are as follows: Year Ending December 31: 2003 2004 2005 2006 2007 2008 and thereafter Total Port Authority Bonds $ 1,004,880 1,367,150 1,366,570 1,347,992 1,356,793 10,170,217 $ 16,613,602 During 1998, the Port Authority issued the following crossover refunding bond: • General Obligation Municipal Building Refunding Bonds, Series 1998A, of $2,405,000 were issued to fund the remaining maturities on the $2,360,000 Municipal Building Bonds, Series 1992E. The proceeds of the refunding issue noted above were placed in an irrevocable escrow account and were used to purchase U.S. Government Securities. The escrow account investments will provide the resources to cover interest payments on the refunding bond until the crossover date and principal payments on the refunding bond on the crossover date. The refunding bond crosses over on the date the refunded bond is callable. Until the crossover date of February 1, 2003, both the refunded and refunding bonds will be re- ported in the financial statements. Escrow deposits at December 31, 2002 were $2,333,811. -23- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 G. Contributed Capital The general fund has $5,059,304 designated for working capital. 1. Reserved Fund Balance and Retained Earnings The City has recorded the following fund balance and retained earning reservations to indicate the portion that is legally segregated for a specific future use or cannot be appropriated for expenditures. ' General Fund - $67,352 is reserved for encumbrances outstanding at December 31, 2002. The changes in the City's contributed capital accounts for Proprietary Funds for the year ended Decem- ber 31, 2002, are as follows: Debt Service Funds - $16,150,056 is reserved for resources legally restricted for the payment of long- term debt principal and interest amounts maturing in future years. Enterprise Funds 1 Sources Water Sewer Storm Water Arena Beginning Balance $ 10,444,948 $ 18,866,087 $ 10,097,854 $ 2,078,282 ' Contributions of Fixed Assets - - - - Depreciation on Contributed Assets (241,684) (568,981) (193,077) - ' Ending Balance $ 10,203,264 $ 18,297,106 $ 9,904,777 $ 2,078,282 H. Designated Fund Balance The general fund has $5,059,304 designated for working capital. 1. Reserved Fund Balance and Retained Earnings The City has recorded the following fund balance and retained earning reservations to indicate the portion that is legally segregated for a specific future use or cannot be appropriated for expenditures. ' General Fund - $67,352 is reserved for encumbrances outstanding at December 31, 2002. 1 -24- Special Revenue Funds - $442,801 is reserved for projects. Debt Service Funds - $16,150,056 is reserved for resources legally restricted for the payment of long- term debt principal and interest amounts maturing in future years. Capital Project Funds - $3,075,508 is reserved for completion of capital projects financed by general ob- ligation bonds. Enterprise Funds - $6,996,862 is reserved for resources legally restricted for the payment of long -term debt principal and interest amounts maturing in future years. The Port Authority has recorded the following fund reservations to indicate the portion that is legally seg- ' regated for specific future use or cannot be appropriated for expenditures: Port Authority - $473 is reserved for prepaid expenditures. $5,122,998 is reserved for debt service. 1 -24- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 IV. OTHER INFORMATION A. Segment Information - Enterprise Funds The City maintains four enterprise funds. The Water, Sewer and Storm Water funds account for the provi- sion of basic utility services to all citizens. The Arena Fund accounts for the operations of the Ice Arena in- cluding rental fees and user charges. Segment information for the year ended December 31, 2002, is as follows: Water Sewer Storm Water Arena Fund Total Operating revenues $ Depreciation Operating income (loss) Operating transfers in (out) Income (loss) before contribution, transfers and depreciation on contributed assets Capital contributions Fixed asset additions Net working capital Total assets Bonds payable Total equity B. Pension Plans 925,159 $ 988,160 $ 684,500 $ 303,138 $ 2,900,957 393,397 622,680 258,409 53,529 1,328,015 (111,677) (363,891) 29,480 (32,328) (478,416) 70,851 (526,518) (1,569,439) (14,458) (2,039,564) 1,381,371 521,114 926,425 (31,600) 2,797,310 1,821,961 1,883,753 3,122,743 - 6,828,457 1,976,631 1,175,636 1,892,886 - 5,045,153 5,013,106 4,944,814 4,292,039 64,351 14,314,310 23,662,015 27,740,777 23,083,202 2,110,607 76,596,601 1,719,121 - 4,751,458 - 6,470,579 21,603,725 27,576,321 18,110,373 2,093,363 69,383,782 City employees and firefighters participate in the pension plans administered by the Public Employees Re- tirement Association of Minnesota (PERA) and the Rosemount Volunteer Fire Relief Association. In ac- cordance 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 Em- ployees 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 mem- bers are covered by Social Security and Basic Plan members are not. All new members must par- ticipate 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 survi- vors 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 members highest average salary for any five successive years of allowable service, age, and years of credit at ter- mination of service. -25- ' CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 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 mem- ber 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 av- erage 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 per- cent 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 mem- bers 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. ' There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree — no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026. b. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contribu- tions to the pension plans equal to the amount required by state statutes. PERF Basic Plan mem- bers and Coordinated Plan members are required to contribute 9.10% and 5.10°/x, 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 an- nual 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 Re- tirement Fund for the years ending December 31, 2002, 2001, and 2000 were $138,316, $117,830, and $108,157, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2002, 2001, and 2000 were $95,598, $89,520, and $84,652, respectively. The City's contributions were equal to the contractually required contribu- tions for each year as set by state statute. 1 -26- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 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 supple- mentary 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 Leg- islature. 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 and 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 by 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 re- tirement benefit until paid. c. Annual Pension Cost and Net Pension Obligations Financial requirements of the Association are determined based on a formula prescribed in Min- nesota 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 as- sociations 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, in- creased 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 per annum. The actuarial value of assets was determined using fair value. The following actuarial assumptions and methods were used: Actuarial cost method N/A * Inflation rate N/A * Investment return N/A * Projected salary increases N/A * Postretirement benefit increases N/A * Amortization method NIA * Amortization period N/A * * Items are not available because no actuarial valuation was required by Minnesota statutes -27- CITY OF ROSEMOUNT ' NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 ' The annual pension cost for the Rosemount Fire Department Relief Association Pension Plan for the year ended December 31, 2002 were as follows: Amount ' State of Minnesota contribution $ 63,378 City of Rosemount contribution 135,000 $ 198,378 1 Three Year Trend Information Fiscal Year Ending Annual Pension Cost Percentage of APC Net Pension (APC) Contribution Obligation the year ended December 31, 2002. 2002 $ 198,378 100.0 % $ 0 2001 80,303 100.0 0 2000 68,723 100.0 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 sub- stantially the same as that used to determine the standardized measure of the net pension obliga- tion. The computation of the pension contribution requirements for 2002 was based on the same formula, funding method and other factors used to determine pension contributions requirements in previous years. d. Required Supplementary Information, Schedule of Funding Progress Ten -year historical trend information is presented in the Rosemount Firefighters Relief Associa- 1 -28- tion's Annual Financial Report for the year ended December 31, 2002. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they be- come due. The following historical trend information was obtained from the Association's financial report for the year ended December 31, 2002. Assets as a Overfunded Aggregate Percentage of (Underfunded) Valuation Valuation Accrued Accrued Accrued Date Assets Liabilities Liabilities Liabilities 12 -31 -02 $ 1,166,341 $ 1,302,563 90% $ (136,222) 12 -31 -01 1,002,211 906,561 111% 95,650 12 -31 -00 951,722 765,045 124% 186,677 ' 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. Related Party Transactions e. As of December 31, 2002 and for the year then ended the Association held no securities issued by City or other related parties. 1 -28- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS ' December 31, 2002 C. Capital Lease Obligations The City has entered into various lease agreements to facilitate the acquisition of various assets. For pur- poses of preparing these financial statements, the lease- purchase agreements have been classified as capital lease obligations. Since none of the assets acquired were used in proprietary fund operations, the acquisition cost of the assets has been reported in the general fixed asset group, and the corresponding , liability has been reported in the general long -term debt account group. The following is a schedule of minimum payments under the various agreements: Year Ending ' December 31: Amount 2003 $ 230,961 ' 2004 230,961 2005 230,961 2006 180,243 2007 115,347 2008 and thereafter 461,387 Total Minimum Lease Payments 1,449,860 ' Less Amount Representing Interest (266,130) Present Value of Minimum Lease Payments $ 1,183,730 D. Residual Equity Transfers Residual equity transfers during 2002 were made for fund closings and are reconciled as follows: Residual Transfer Special Revenue Funds In Out Street CIP $ 27,918 Debt Service Funds G.O. Improvement Bonds 1991A $ 9 G.O. Improvement Bonds 1993A 94 , G.O. Municipal Building Refunding Bonds 1993D 112,171 G.O. Improvement Bonds 1999B 166,647 Capital Project Funds Diamond Path — Co. Rd. 42 to Co. Rd. 46 13,325 Dodd Blvd — Chippendale to S/P 166,647 CSAH 42 - Diamond Path to Shannon Parkway 14,593 East Side Water Improvements 159,587 TH 3 Reconstruction - 145th to CSAH 42 713,794 Component Unit Port Authority G.O. Public Facility Bonds 2001C 112,171 Port Authority G.O. Bonds 1993E, 1994A, 20006 17,243 Rosemount Business Park — Phase II 17,243 ' Special Revenue Fund 713,794 Enterprise Funds Water Utility 159,587 $ 1,197,454 $ 1,197,454 -29- I CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS December 31, 2002 I E. Prior Period Adjustments I u f F. Commitments and Contingencies There were no prior period adjustments made in the current year. The City has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for ex- penditures disallowed under terms of the grants. Management believes such disallowances, if any, would be immaterial. G. Reconciliation for Unbudgeted Funds A reconciliation of the combined statement of revenues, expenditures and changes in fund balances — actual and budget to the combined statement of revenues, expenditures, and changes in fund balances — all governmental fund types is as follows: Special Revenue Funds Excess of revenues and other sources over expendi- tures and other uses (budgeted) $ 208,293 Mississippi River Grant Fund (unbudgeted) 45 Park Improvements Fund (unbudgeted) 352,469 Tree Disease Grant Fund (unbudgeted) 1 Crime Reduction Project Fund (unbudgeted) (5,314 ) Fire Safety Education Fund (unbudgeted) 422 GIS Fund (unbudgeted) 8,292 Encumbrances — Street CIP Fund 149,799 Encumbrances — Equipment CIP Fund 309,400 Excess of Revenues and Other Sources Over Expendi- tures and Other Uses (all funds) $ 1,023,407 H. Subsequent Events On February 1, 2003, the City called $3,120,000 of outstanding bonds for redemption. Also, on February 5, 2003, the City defeased various bond issues totaling $5,315,000. I. Effect of New Accounting Standards on Current - Period Financial Statements The Governmental Accounting Standards Board (GASB) recently approved Statement Nos. 34, 37 and 38. These Statements require significant changes from the current method of financial reporting for all state and local governments in the United States. GASB Statement 34 Basic Financial Statements -and Man- agement Discussion and Analysis -for State and Local Governments; Statement 37 Basic Financial State- ments -and Management Discussion and Analysis -for State and Local Governments, Omnibus; and Statement 38 Certain Financial Statement Note Disclosures are effective for the City of Rosemount, Min- nesota for the fiscal year beginning on January 1, 2003. These Statements require retroactive application of certain accounting and reporting standards, which may restate portions of these financial statements. -30- THIS PAGE INTENTIONALLY LEFT BLANK L r I GENERALFUND The General Fund is used to account for the revenue and expenditures to carry out basic governmental activities of the City such as general government, public safety, public works, and parks and recreation. Revenue is recorded by source; i.e., taxes, licenses and permits, fines and forfeits, charges for services, etc. General Fund expenditures are made primarily for daily operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all transactions not required legally or by sound financial management to be accounted for in another fund. 1 i 1 CITY OF ROSEMOUNT EXHIBIT A -1 COMPARATIVE BALANCE SHEET - GENERAL FUND December 31, 2002 and 2001 2002 2001 ASSETS Cash and investments Receivables Property taxes Accounts Special assessments Due from other governments Prepaid items TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued liabilities Deposits payable Deferred revenues Total Liabilities FUND BALANCE Reserved for Prepaid items Encumbrances Unreserved Designated for working capital Total Fund Balance TOTAL LIABILITIES AND FUND BALANCES -31- $ 5,213,909 $ 3,680,773 416,716 356,743 3,910 7,538 77,355 - 40,784 38,873 - 26,298 $ 5,752,674 $ 4,110,225 $ 170,898 $ 191,688 102,928 80,608 217,485 35,590 134,707 36,736 626,018 344,622 26,298 67,352 131,020 5,059,304 3,608,285 5,126,656 3,765,603 $ 5,752,674 $ 4,110,225 CITY OF ROSEMOUNT EXHIBIT A -2 COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND For the Years Ended December 31, 2002 and 2001 2002 2001 REVENUES Taxes Intergovernmental revenues Licenses and permits Fines and forfeitures Special assessments Charges for services Investment income Net increase in the fair value of investments Miscellaneous Total Revenues EXPENDITURES General government Public safety Public works Parks and recreation Total Expenditures Excess of Revenues over Expenditures OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out Operating transfers in - component unit Operating transfers out - component unit Total Other Financing Uses Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses FUND BALANCE - January 1 FUND BALANCE - December 31 $ 4,556,291 $ 3,188,409 666,057 1,185,590 797,688 790,396 85,835 88,524 82,103 65 702,775 700,702 110,576 174,362 18,548 2,167 288,437 314,952 7,308,310 6,445,167 1,557,734 1,361,793 1,884,975 1,711,407 1,834,122 1,676,886 785,226 751,673 6,062,057 5,501,759 1,246,253 943,408 3,500 3,500 - (260,771) 111,300 - - (637,063) 114,800 (894,334) 1,361,053 49,074 3,765,603 3,716,529 $ 5,126,656 $ 3,765,603 -32- I I 1 e CITY OF ROSEMOUNT SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND For the Year Ended December 31, 2002 (With Comparative Actual Totals for the Year Ended December 31, 2001) EXHIBIT A -3 2002 200 Variance - Favorable Budget Actual (Unfavorable) Actual $ 3,677,552 $ TAXES $ (45,388) General property tax 708,036 Fiscal disparities - Other 142,000 Total Taxes 74,091 INTERGOVERNMENTAL REVENUES 4,527,588 Local government aid (LGA) Homestead and ag credit (HACA) 28,703 Federal grants State aid - police State aid - general government Mobile home HACA 394,723 Other - Total Intergovemmental Revenues I 1 e CITY OF ROSEMOUNT SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND For the Year Ended December 31, 2002 (With Comparative Actual Totals for the Year Ended December 31, 2001) EXHIBIT A -3 2002 200 Variance - Favorable Budget Actual (Unfavorable) Actual $ 3,677,552 $ 3,632,164 $ (45,388) $ 2,392,742 708,036 708,036 - 612,593 142,000 216,091 74,091 183,074 4,527,588 4,556,291 28,703 3,188,409 394,723 394,723 - 394,496 - - - 577,707 - - 1,099 93,000 95,883 2,883 90,942 - 47,221 47,221 - - - - 23,060 98,589 128,230 29,641 98,286 586,312 666,057 79,745 1,185,590 477,000 797,483 320,483 790,371 1,500 205 (1,295) 25 478,500 797,688 319,188 790,396 90,000 85,835 (4,165) 88,524 432,200 578,600 146,400 609,504 46,200 41,643 (4,557) 87,112 78,236 78,236 0 3,000 4,296 1,296 4,086 481,400 702,775 221,375 700,702 121,000 110,576 (10,424) 174,362 - 18,548 18,548 2,167 5,000 21,407 16,407 10,105 - 82,103 82,103 65 - 31,349 31,349 77,166 203,900 231,287 27,387 222,921 4,400 4,394 (6) 4,760 334,300 499,664 165,364 491,546 6,498,100 7,308,310 810,210 6,445,167 3,500 3,500 - 3,500 - 111,300 111,300 - LICENSES AND PERMITS Business Non - business Total Licenses and Permits FINES AND FORFEITURES County CHARGES FOR SERVICES Other General govemment Public safety Highways and streets SAC Total Charges for Services INVESTMENT INCOME AND MISCELLANEOUS Investment income Net increase in the fair value of investments Miscellaneous general revenues Special assessments Donations Recreational fees Rents Total Investment Income and Miscellaneous Total Revenues OTHER FINANCING SOURCES Operating transfers in Operating transfers in - component unit $ 6,501,600 $ 7,423,110 $ 921,510 $ 6,448,667 TOTAL REVENUES AND OTHER FINANCING SOURCES 1 -33- CITY OF ROSEMOUNT EXHIBIT A-4 SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND For the Year Ended December 31, 2002 (With Comparative Actual Totals for the Year Ended December 31, 2001) 2002 2001 Variance- Favorable Budget Actual (Unfavorable) Actual GENERAL GOVERNMENT Mayor and Council Personal services $ 25,700 $ 25,533 $ 167 $ 25,533 Professional fees 31,500 18,695 12,805 26,053 Other charges 17,400 32,364 (14,964) 51,690 Council designated 14,000 2,944 11,056 11,199 Executive Personal services 306,200 306,120 80 273,533 Supplies 2,200 530 1,670 22 Professional fees 6,600 12,624 (6,024) 6,774 Other charges 4,400 4,375 25 5,341 Capital outlay 900 737 163 - Elections Personal services 11,000 25,169 (14,169) - Supplies 3,900 1,901 1,999 - Other charges 2,400 926 1,474 - Capital outlay 5,700 3,644 2,056 10,200 Finance Personal services 195,900 175,845 20,055 137,914 Professional fees 55,800 53,420 2,380 39,380 Other charges 3,600 3,927 (327) 2,707 Community Development Personal services 659,900 571,154 88,746 485,331 Supplies 4,600 4,204 396 3,378 Professional fees 11,000 10,545 455 7,887 Other charges 9,200 6,065 3,135 5,201 General Government Supplies 43,200 41,105 2,095 43,814 Professional fees 238,500 208,403 30,097 216,123 Other charges - 105 (105) 188 Capital outlay 17,000 16,392 608 10,973 Total General Government 1,670,600 1,526,727 143,873 1,363,241 PUBLIC SAFETY Police Department Personal services $ 1,458,900 $ 1,402,231 $ 56,669 $ 1,297,879 Supplies 13,100 15,031 (1,931) 20,897 Professional fees 199,900 188,919 10,981 179,471 Other charges 15,500 13,128 2,372 11,728 Capital outlay 600 1,178 (578) 286 Fire Department Personal services 194,500 68,877 125,623 129,757 Supplies 11,400 14,174 (2,774) 20,735 Professional fees 29,300 155,209 (125,909) 18,746 Other charges 2,600 1,740 860 1,931 Capital outlay 17,000 24,488 (7,488) 28,586 Total Public Safety 1,942,800 1,884,975 57,825 1,710,016 -34- C CITY OF ROSEMOUNT EXHIBIT A-4 SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - (Concluded) BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND For the Year Ended December 31, 2002 (With Comparative Actual Totals for the Year Ended December 31, 2001) 2002 2001 PUBLIC WORKS Government Buildings Maintenance Personal services Supplies Professional fees Other charges Debt payments Fleet Maintenance Personal services Supplies Professional fees Other charges Street Maintenance Personal services Supplies Professional fees Other charges Park Maintenance Personal services Supplies Professional fees Other charges Total Public Works PARKS AND RECREATION Parks and Recreation Personal services Supplies Professional fees Other charges Total Parks and Recreation TOTAL EXPENDITURES AND ENCUMBRANCES OTHER FINANCING USES Operating transfers out Operating transfers out - component unit TOTAL EXPENDITURES, ENCUMBRANCES AND OTHER FINANCING USES BEGINNING OF YEAR BUDGET BASIS ENCUMBRANCES END OF YEAR BUDGET BASIS ENCUMBRANCES GAAP BASIS EXPENDITURES AND OTHER FINANCING USES Variance - Favorable Budget Actual (Untavorable) Actual $ 48,500 $ 48,582 $ (82) $ 46,250 22,200 15,260 6,940 19,380 135,900 140,113 (4,213) 117,328 16,000 16,056 (56) 14,460 90,300 90,218 82 89,988 139,800 130,935 8,865 126,440 209,500 180,508 28,992 187,919 14,000 6,261 7,739 3,226 32,200 28,153 4,047 17,586 443,800 364,892 78,908 360,590 122,000 111,622 10,378 99,922 136,800 121,773 15,027 121,584 191,200 178,482 12,718 154,158 325,700 289,953 35,747 254,170 45,200 42,731 2,469 48,804 24,200 13,619 10,581 15,162 28,000 22,303 5,697 19,355 2,025,300 1,801,461 223,839 1,696,322 $ 629,590 $ 567,636 $ 61,954 $ 508,895 55,710 56,142 (432) 55,890 113,000 89,410 23,590 98,966 64,600 72,038 (7,438) 87,922 862,900 785,226 77,674 751,673 $ 6,501,600 $ 5,998,389 $ 503,211 $ 5,521,252 260,771 637,063 $ 6,501,600 5,998,389 $ 503,211 6,419,086 131,020 111,527 (67,352) (131,020) $ 6,062,057 $ 6,399,593 -35- THIS PAGE INTENTIONALLY LEFT BLANK SPECIAL REVENUE FUNDS ' Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are typically required by statute or local ordinance to finance particular functions or activities of government. Buildin g CIP Fund - This fund is used to account for the on -going capital improvements and possible additions to government buildings. Street CIP Fund - This fund is used to account for on -going street reconstruction projects within the City and all other major maintenance items related to both paved ' and unpaved streets including, but not limited to, street lights, signal lights, sidewalks and gravel road resurfacing. Mississippi River Fund - This fund is used to account for grants received to assist with the Mississippi River Corridor Study and the Comprehensive Guide Plan update. Park Improvements Fund - This fund is used to account for park dedication fees collected from developers as different areas of the City are developed. These fees are ' used to develop new parks within the City and to make improvements to current parks. Equipment CIP Fund - This fund is used to account for the on -going replacement of and additions to City equipment. Tree Disease Grant Fund - This fund is used to account for grants received to battle various types of tree diseases in the City. 2001 Equipment Lease - Purchase — This fund is used to complete a lease- purchase ' transaction for additions to the City equipment inventory. Crime Reduction Project Fund - This fund is used to account for the implementation 1 and on -going operation of the City's crime reduction program. Fire Safety Education Fund -This fund is used to account for the on -going operation of the City's fire safety trailer. This trailer is used in training by our City and surrounding communities and organizations. GIS Fund - This fund is used to account for the development and on -going operations of the City's GIS system. THIS PAGE INTENTIONALLY LEFT BLANK r CITY OF ROSEMOUNT COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) ASSETS Cash and investments Receivables Accounts Special assessments TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Advances from other funds Deferred revenues Total Liabilities FUND BALANCES (DEFICIT) Reserved for special projects Unreserved Undesignated (Deficit) Total Fund Balances (Deficit) TOTAL LIABILITIES AND FUND BALANCES Mississippi Building Street River Park CIP CIP Grant I mprovement s $ 254,052 $ 779,350 $ 6,904 $ 741,043 22,405 - - - 77,825 - - $ 254,052 $ 879,580 $ 6,904 $ 741,043 $ - $ - $ - $ 578 260,107 - - - - 77,825 - - 260,107 77,825 - 578 103,401 - - - (109,456) 801,755 6,904 740,465 (6,055) 801,755 6,904 740,465 $ 254,052 $ 879,580 $ 6,904 $ 741,043 -36- EXHIBIT B -1 Tree Disease Crime Fire Equipment Grant Reduction Safety Totals CIP Program Project Education GIS 2002 2001 $ 733,553 $ 146 $ 9,722 $ 7,822 $ 51,827 $ 2,584,419 $ 1,559,502 - - - - - 22,405 10,232 - - - - - 77,825 39,082 $ 733,553 $ 146 $ 9,722 $ 7,822 $ 51,827 $ 2,684,649 $ 1,608,816 115 $ - $ - $ 693 $ 4,629 - - - 260,107 270,578 - - - 77,825 38,910 115 - - 338,625 314,117 339,400 - - - - 442,801 197,603 394,153 146 9,607 7,822 51,827 1,903,223 1,097,096 733,553 146 9,607 7,822 51,827 2,346,024 1,294,699 $ 733,553 $ 146 $ 9,722 $ 7,822 $ 51,827 $ 2,684,649 $ 1,608,816 -37- CITY OF ROSEMOUNT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT) ALL SPECIAL REVENUE FUNDS For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) REVENUES Taxes Municipal state aid (MSA) Intergovernmental revenues Special assessments Userfees Investment income Net increase in FMV of investments Park dedication Donations and other Total Revenues EXPENDITURES Supplies Other professional services Other Capital outlay Lease payments Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Proceeds of long term debt Sale of general fixed assets Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses FUND BALANCES (DEFICIT) - January 1 Equity transfers FUND BALANCES (DEFICIT) - December 31 Mississippi Building Street River Park CIP CIP Grant I mprovement s $ 24,000 $ 208,000 $ - $ - 19,422 - - - 160,859 - - 4,224 16,927 45 12,902 - 406 - - - - - 415,421 30,000 2,750 - - 58,224 408,364 45 428,323 - 2,500 - - 2,500 - - - 4,201 927 - 75,854 13,529 - - - 20,230 3,427 - 75,854 37,994 404,937 45 352,469 (103,575) - (103,575) - - 37,994 301,362 45 352,469 (44,049) 472,475 6,859 387,996 27,918 - - $ 6,055 $ 801,755 $ 6,904 $ 740,465 -38- EXHIBIT B -2 305,423 1 (5,314) 11,755 - - 10,958 = 22,713 - - Fire Tree Disease Crime Equipment Grant Reduction CIP Program Project $ 770,100 $ - $ - $ 5,280 1 78 2,156 - - 777,536 1 78 _ - - 286 - - 5,000 2,500 - 106 238,652 - - 230,961 573 40,079 472,113 - 5,392 305,423 1 (5,314) 11,755 - - 10,958 = 22,713 - - Fire Safety Totals Education GIS 2002 2001 - $ - $ 1,002,100 $ 1,052,700 - - - 33,842 - - - 5,023 - - 19,422 19,913 - 23,482 184,341 189,564 49 573 40,079 104,159 - - 406 2,474 - - 415,421 153,648 793 - 35,699 458 842 24,055 1,697,468 1,561,781 - - 286 1,343 - 15,763 23,263 21,021 420 - 5,526 6,274 - - 319,634 1,399,659 - - 244,490 129,642 420 15,763 593,199 1,557,939 422 8,292 1,104,269 3,842 - 885,000 - - 11,755 3,056 - - 10,958 - - (103,575) (1,520,854) - - (80,862) (632,798) 328,136 1 (5,314) 422 8,292 1,023,407 (628,956) 405,417 145 14,921 7,400 43,535 1,294,699 1,891,759 - - - - - 27,918 31,896 $ 733,553 $ 146 $ 9,607 $ 7,822 $ 51,827 $ 2,346,024 $ 1,294,699 -39- CITY OF ROSEMOUNT COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) ANNUALLY ADOPTED SPECIAL REVENUE FUNDS For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) Buildinq CIP Fund REVENUES Taxes Municipal state aid (MSA) Intergovernmental Special assessments User fees Investment income Net increase FMV investments Sale of general fixed assets Donations and other Total Revenues EXPENDITURES Other professional services Other Operating lease payments Capital outlay Total Expenditures Excess of revenues over expenditures OTHER FINANCING USES Operating transfers out Total Other Financing Uses Excess of revenues and other financing sources over expenditures and other financing uses Reconciliation to GAAP basis elimination of encumbrances, net FUND BALANCES (DEFICIT)- January 1 Equity transfers FUND BALANCES (DEFICIT) - December 31 2,500 2,500 - 14,000 13,529 471 10,000 - 10,000 26,500 16,029 10,471 500 42,195 41,695 $ 500 42,195 $ 41,695 (4,201) (44,049) $ (6,055) .e Variance - Favorable Budget Actual (Unfavorable) $ 24,000 $ 24,000 $ - 2,900 4,224 1,324 100 - (100) - 30,000 30,000 27,000 58,224 31,224 2,500 2,500 - 14,000 13,529 471 10,000 - 10,000 26,500 16,029 10,471 500 42,195 41,695 $ 500 42,195 $ 41,695 (4,201) (44,049) $ (6,055) .e EXHIBIT B -3 (Continued) 2,500 2,500 - - - - - - 2,500 2,500 - 231,100 230,961 139 275,000 154,927 120,073 539,000 548,052 (9,052) 277,500 157,427 120,073 772,600 781,513 (8,913) 57,700 250,937 193,237 2,400 7,778 5,378 (103,575) (103,575) - - - (103,575) (103,575) - 10,958 10,958 $ 57,700 147,362 $ 89,662 $ 2,400 18,736 $ 16,336 154,000 309,400 472,475 405,417 27,918 - $ 801,755 $ 733,553 -41- Street CIP Fund Equipment CIP Fund Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 208,000 $ 208,000 $ - $ 770,100 $ 770,100 $ - 17,000 19,422 2,422 - - - 90,000 160,859 70,859 - - - 20,200 16,927 (3,273) 4,900 5,280 380 - 406 406 - - - - 11,755 11,755 - 2,750 2,750 - 2,156 2,156 335,200 408,364 73,164 775,000 789,291 14,291 2,500 2,500 - - - - - - 2,500 2,500 - 231,100 230,961 139 275,000 154,927 120,073 539,000 548,052 (9,052) 277,500 157,427 120,073 772,600 781,513 (8,913) 57,700 250,937 193,237 2,400 7,778 5,378 (103,575) (103,575) - - - (103,575) (103,575) - 10,958 10,958 $ 57,700 147,362 $ 89,662 $ 2,400 18,736 $ 16,336 154,000 309,400 472,475 405,417 27,918 - $ 801,755 $ 733,553 -41- CITY OF ROSEMOUNT ' COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ' BUDGET (AS AMENDED) AND ACTUAL (BUDGETARY BASIS) ANNUALLY ADOPTED SPECIAL REVENUE FUNDS For the Year Ended December 31, 2002 ' (With Comparative Totals for the Year Ended December 31, 2001) Total - 2002 ' REVENUES Taxes Intergovernmental Special assessments User fees Investment income Net increase FMV investments Sale of general fixed assets Donations and other Total Revenues EXPENDITURES Other professional services Other Operating lease payments Capital outlay Total Expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Proceeds of long term debt Operating transfers out Total Other Financing Uses Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Reconciliation to GAAP basis elimination of encumbrances, net FUND BALANCES - January 1 Equity transfers FUND BALANCES - December 31 2,500 2,500 Variance - 5,000 5,000 Favorable Budget Actual (Unfavorable) $ 1,002,100 $ 1,002,100 $ - 17,000 19,422 2,422 90,000 160,859 70,859 28,000 26,431 (1,569) 100 406 306 - 11,755 11,755 - 34,906 34,906 1,137,200 1,255,879 118,679 2,500 2,500 - 5,000 5,000 - 245,100 244,490 610 824,000 702,979 121,021 1,076,600 954,969 121,631 60,600 300,910 240,310 (103,575) (103,575) (92,617) (92,617) $ 60,600 208,293 $ 147,693 459,199 833,843 27,918 $ 1,529,253 -42- Total - 2001 2,500 8,653 Variance - 5,000 5,000 Favorable Budget Actual (Unfavorable) $ 1,052,700 $ 1,052,700 $ - - 33,842 33,842 17,000 19,913 2,913 50,000 179,864 129,864 27,700 72,980 45,280 - 2,474 2,474 - 3,056 3,056 - 199 199 1,147,400 1,365,028 217,628 2,500 8,653 6,153 5,000 5,000 - 129,700 129,642 (58) 990,000 1,190,712 200,712 1,127,200 1,334,007 206,807 20,200 31,021 10,821 885,000 885,000 (1,520,854) (1,520,854) (635,854) (635,854) $ 20,200 (604,833) $ (625,033) 97,603 1,309,177 31,896 $ 833,843 -43- EXHIBIT B -3 (Concluded) THIS PAGE INTENTIONALLY LEFT BLANK F DEBT SERVICE FUNDS Debt Service Funds are established to finance and account for the payment of principal and interest on all general obligation debt including that payable from special assessments but excluding debt issued for and serviced by a governmental enterprise. Provisions are made in the City's general property tax levy for money sufficient to meet the general obligation debt and any improvement bonds that are structured to include tax levies. Special assessment levies are sufficient to meet the debt service obligation of the special assessment improvement debt issues unless structured differently. General Obligation Bond Debt included in the Debt Service Fund is as follows: 1992C Community Center Bonds 1993D Municipal Building Refunding Bonds 1996A Fire Station Bonds 2001 E Community Center Refunding Bonds 1992A Improvement Bonds 1993A Improvement Bonds 1994A Improvement Bonds 19978 Improvement Bonds 1995A Improvement Bonds 1997A Improvement Bonds 1991A Improvement Bonds 1991 B Improvement Bonds 1992D Improvement Bonds 1994C State Aid Street Bonds 1998A Improvement Bonds 1998B Improvement Bonds 1998C Improvement Bonds 1999A Improvement Bonds 1999B Improvement Bonds 2001A Improvement Bonds 2002A Improvement Bonds EXHIBIT C -1 CITY OF ROSEMOUNT BALANCE SHEET DEBT SERVICE FUND December 31, 2002 (With Comparative Totals for December 31, 2001) Totals 2002 2001 ASSETS Cash and investments Investment with fiscal agent Receivables Accounts Special assessments TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Deferred revenues FUND BALANCES Reserved for debt service TOTAL LIABILITIES AND FUND BALANCES -44- $ 15,458,549 $17,766,544 691,341 709,494 - 15,740 4,028,810 1,637,182 $ 20,178,700 $ 20,128,960 $ - $ 652 4,028,644 1,591,145 16,150,056 18,537,163 $ 20,178,700 $ 20,128,960 EXHIBIT C -2 CITY OF ROSEMOUNT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) Total 2002 2001 REVENUES Taxes $ 312,176 $ 453,754 Municipal state aid (MSA) 86,148 90,066 Special assessments 891,857 1,615,863 Investment income 384,612 861,823 Net increase FMV investments 17,289 3,413 Total Revenues 1,692,082 3,024,919 EXPENDITURES Other 297 8 Principal retirement 3,285,000 2,560,000 Interest 1,009,700 1,065,554 Fiscal agent fees 4,512 15,083 Total Expenditures 4,299,509 3,640,645 Deficiency of Revenues Over Expenditures (2,607,427) (615,726) OTHER FINANCING SOURCES Proceeds of general obligation long -term debt 95,844 720,941 Operating transfers in 70,000 60,100 Total Other Financing Sources 165,844 781,041 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (2,441,583) 165,315 FUND BALANCES - January 1 18,537,163 18,115,814 Equity transfers 54,476 256,034 FUND BALANCES - December 31 $ 16,150,056 $ 18,537,163 -45- CAPITAL PROJECT FUNDS Capital Project Funds are established to account for the resources expended to acquire assets of a relatively permanent nature, other than those financed by proprietary funds and trust funds. These funds evolve from the need for special accounting for bond proceeds, grants and contributions for the acquisition of capital assets. Capital Project Funds provide a formal mechanism which enables administrators to ensure that revenues designated for certain purposes are properly used. Capital Project Funds further enhance reporting that requirements regarding the use of revenue were fully satisfied. The City's Capital Projects are as follows: Evermoor 6 th & 7th Additions Chippendale / County Road 42 Improvements Connemara Trail Extension — Phase 2 (East of Trunk Highway 3) South Rose Park Area Improvements Connemara Trail Extension (West of Trunk Highway 3) Evermoor - Glendalough 1 st Addition Bloomfield 3rd Addition Evermoor - Drumcliffe Addition Evermoor 8 th Addition Bloomfield 4 th Addition Trunk Highway 3 Reconstruction - 145 Street to County Road 42 Evermoor — Bards Crossing County Road 46 (160 Street) Improvements Bloomfield 2 nd Addition Evermoor 9 th Addition (Wicklow) Evermoor — Roundstone Evermoor — Waterford County Road 42 — Diamond Path to Shannon Parkway Rosemount Village Center 2001 Reconstruction — Dodd Boulevard — West of Shannon Parkway Evermoor — Clare Downs D.R. Horton (Evermoor 4 th Addition) Evermoor — Crosscroft D.R. Horton (Evermoor 2 nd Addition) Rosewood Village Minea Property Wachter Lake Addition Evermoor 140 Street East Development Biscayne Pointe 4 th Addition Carrousel Plaza Townhomes Diamond Path Project — CR 42 to CR 46 Dodd Boulevard Project — Chippendale to Shannon Parkway Bloomfield 5 th Addition EXHIBIT D -1 CITY OF ROSEMOUNT BALANCE SHEET CAPITAL PROJECT FUND December 31, 2002 (With Comparative Totals for December 31, 2001) Totals 2002 2001 ASSETS Cash and investments TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Contracts payable Total Liabilities FUND BALANCES Reserved for capital projects TOTAL LIABILITIES AND FUND BALANCES -46- $ 4,067,279 $ 3,008,187 $ 4,067,279 $ 3,008,187 $ 150,465 $ 112,370 841,306 905,473 991,771 1,017,843 3,075,508 1,990,344 $ 4,067,279 $ 3,008,187 CITY OF ROSEMOUNT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - CAPITAL PROJECT FUND For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 200 1) EXHIBIT D -2 Total 2002 2001 REVENUES Investment income $ 59,560 $ 122,180 Developer fees and other 7,622,559 2,836,163 Total Revenues 7,682,119 2,958,343 EXPENDITURES Construction Costs Improvements 8,884,566 4,883,471 Engineering fees 1,600,830 935,179 Other fees 81,451 47,218 Professional fees 62,138 17,977 Other 195,769 100,248 Total Expenditures 10,824,754 5,984,093 Deficiency of Revenues Over Expenditures (3,142,635) (3,025,750) OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt 3,306,563 1,310,425 Operating transfers in 1,989,182 2,621,358 Operating transfers out - (889,686) Total Other Financing Sources 5,295,745 3,042,097 Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 2,153,110 16,347 BEGINNING FUND BALANCES 1,990,344 2,343,634 Prior period adjustments - (81,707) FUND BALANCES - January 1 1,990,344 2,261,927 Equity transfers (1,067,946) (287,930) FUND BALANCES - December 31 $ 3,075,508 $ 1,990,344 -47- ' ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in ' a manner similar to private business enterprises - where the intent of the governmental unit is that the costs of providing goods or services to the general public on a continuing ' basis be financed or recovered primarily through user charges; or where the governmental unit has decided that periodic determination of net income is appropriate for accountability purposes. Records are maintained on the accrual basis of accounting. Water Fund - This fund is used to account for the activities of the City's water distribution operations. Sewer Fund - This fund is used to account for the activities of the City's collection and treatment of sewage operations. Storm Water Fund - This fund is used to account for the activities of the City's storm water drainage operations. ' Arena Fund - This fund is used to account for the activities of the City's ice arena operations. I� n 1 u I THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ROSEMOUNT COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS December 31, 2002 (With Comparative Totals for December 31, 2001) ASSETS CURRENT ASSETS Cash and investments Water Sewer Storm Water $ 5,304,375 $ 4,204,129 $ 4,490,545 Accounts receivable Customer accounts Special assessments Due from other governments Inventories and prepaid items Advances to other funds Total Current Assets PROPERTY AND EQUIPMENT Land Buildings Mains and lines Other improvements Machinery and equipment Construction in progress Less accumulated depreciation Net Property and Equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable Compensated absences payable Accrued liabilities Accrued interest Contracts payable Advances from other funds Current maturities of long -term debt Total Current Liabilities 206,310 218,333 130,793 42,452 137,255 93,157 3,648 46,138 368,485 2,712 5,556,785 4,974,340 4,717,207 269,342 - 179,155 2,485,225 197,431 853,891 3,357,770 2,074,479 3,443,739 15,709,459 36,983,749 12,550,029 973,318 316,440 122,439 1,871,836 2,203,619 4,136,021 (6,561,720) (19,009,281) (2,919,279) 18,105,230 22, 766,437 18,365,995 $ 23,662,015 $ 27,740,777 $ 23,083,202 $ 52,599 $ 6,625 $ 7,732 17,650 17,650 13,387 6,708 5,251 4,232 35,502 - 91,415 77,842 - 13,402 108,378 - - 245,000 - 295,000 543,679 29,526 425,168 LONG -TERM DEBT LESS CURRENT MATURITIES Revenue debt, less current maturities 1,474,121 - 4,456,458 Deferred revenue 40,490 134,930 91,203 Total Long -Term Debt 1,514,611 134,930 4,547,661 Total Liabilities 2,058,290 164,456 4,972,829 FUND EQUITY Contributed capital 10,203,264 18,297,106 9,904,777 Retained earnings - reserved for debt service 1,730,000 476,862 4,790,000 Retained earnings - unreserved 9,670,461 8,802,353 3,415,596 Total Retained Earnings 11,400,461 9,279,215 8,205,596 Total Equity 21,603,725 27,576,321 18,110,373 TOTAL LIABILITIES AND FUND EQUITY $ 23,662,015 $ 27,740,777 $ 23,083,202 -48- 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 EXHIBIT E -1 Arena Totals 2002 2001 $ 65,220 $ 14,064,269 $ 12,723,402 - 555,436 568,052 - 272,864 227,537 14,288 14,288 55,648 2,087 54,585 54,955 - 368,485 383,319 81,595 15,329,927 14,012,913 - 448,497 443,996 2,360,000 5,896,547 5,269,709 - 8,875,988 4,577,757 - 65,243,237 65,243,237 94,598 1,506,795 1,423,825 8,211,476 5,718,344 (425,586) (28,915,866) (27,620,467) 2,029,012 61,266,674 55,056,401 $ 2,110,607 $ 76,596,601 $ 69,069,314 $ 4,707 $ 71,663 $ 102,850 8,986 57,673 52,670 3,551 19,742 15,239 - 126,917 118,301 - 91,244 279,232 - 108,378 112,741 - 540,000 460,000 17,244 1,015,617 1,141,033 - 5,930,579 6,067,997 - 266,623 222,292 - 6,197,202 6,290,289 17,244 7,212,819 7,431,322 2,078,282 40,483,429 41,487,171 6,996,862 6,261,059 15,081 21,903,491 13,889,762 15,081 28,900,353 20,150,821 2,093,363 69,383,782 61,637,992 $ 2,110,607 $ 76,596,601 $ 69,069,314 MR2 CITY OF ROSEMOUNT 1 COMBINING STATEMENT OF REVENUES, EXPENSES , AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) OPERATING REVENUES Charges for services Water meter maintenance Water meters Miscellaneous Total Operating Revenues OPERATING EXPENSES Personnel services Supplies Professional services and charges Other services and charges Metro sewer charges Total Operating Expenses Operating Income Before Depreciation Depreciation Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Connection fees Special assessments Investment earnings Net increase in the fair value of investment Loss from disposal of fixed assets Surcharges and penalties Interest expense and fiscal agent fees Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions, Transfers and Depreciation on contributed assets Capital contributions Operating transfers in Operating transfers out Operating transfers in - component unit Operating transfers out - component unit Depreciation on contributed assets Total contributions, transfers and depreciation on contributed assets INCREASE (DECREASE) IN RETAINED EARNINGS RETAINED EARNINGS - January 1 Equity transfers RETAINED EARNINGS - December 31 Water Sewer Storm Water $ 809,015 $ 981,837 $ 538,621 113,471 - - 2,673 6,323 145,879 925,159 988,160 684,500 194,404 205,118 151,513 239,813 10,767 11,568 103,626 22,093 61,015 105,596 30,512 172,514 - 460,881 - 643,439 729,371 396,610 281,720 258,789 287,890 (393,397) (622,680) (258,409) (111,677) (363,891) 29,481 1,209,435 581,644 869,324 32,347 94,178 101,059 128,610 187,623 126,535 34,884 19,314 17,644 181,739 7,883 1,197 (93,967) (5,637) (218,814) 1,493,048 885,005 896,945 1,381,371 521,114 926,426 1,821,961 1,883,753 3,122,743 1,792,556 755,014 1,432,001 (1,645,205) (1,240,532) (3,049,441) 7,500 - 48,000 (84,000) (41,000) - 241,684 568,981 193,077 2,134,496 1,926,216 1,746,380 3,515,867 2,447,330 2,672,806 7,725,007 6,831,885 5,532,790 159,587 $ 11,400,461 $ 9,279,215 $ 8,205,596 50- EXHIBIT E -2 Totals Arena 2002 2001 $ 303,138 $ 2,632,611 $ 2,582,105 - - 5,709 113,471 126,559 154,875 303,138 2,900,957 2,714,373 134,537 685,572 615,090 13,687 275,835 350,030 12,994 199,728 230,748 120,719 429,341 215,597 - 460,881 427,042 281,937 2,051,357 1,838,507 21,201 849,600 875,866 (53,529) (1, (1,261,888) (32,328) (478,415) (386,022) -51- 2,660,403 2,013,209 227,584 247,654 728 443,496 594,281 71,842 25,317 - - (2,851) 190,819 178,966 - (318,418) (279,517) 728 3,275,726 2,777,059 (31,600) 2,797,311 2,391,037 6,828,457 3,777,581 - 3,979,571 844,829 (14,458) (5,949,636) (858,476) - 55,500 - - (125,000) (500,000) - 1,003,742 1,050,943 (14,458) 5,792,634 3,263,934 (46,058) 8,589,945 6,705,914 61,139 20,150,821 13,444,907 - 159,587 - $ 15,081 $ 28,900,353 $ 20,150,821 -51- CITY OF ROSEMOUNT COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to Reconcile Operating Income Loss) to Net Cash Provided by Operating Activities Depreciation Nonoperating revenues Change in Assets and Liabilities Accounts receivable Special assessments Due from other governments Inventories and prepaid items Advances to other funds Accounts payable Accrued liabilities Advances from other funds Deferred revenue Net Cash Provided by Operating Activities Water Sewer Storm Water $ (111,677) $ (363,891) $ 29,481 393,397 622,680 258,409 1,458,405 683,706 989,223 (4,549) 13,861 3,304 26,691 30,150 31,860 - 30,299 - 669 (4,281) 3,235 - 127,574 - 16,367 (1,243) (23,522) 2,310 2,179 1,946 (4,363) 14,834 - 1,388 48,582 (5,639) 1,778,638 1,204,450 1,288,297 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers in 1,800,056 755,014 1,480,001 Operating transfers out (1,729,205) (1,281,532) (3,049,441) Net Cash Provided (Used) by Noncapital Financing Activities 70,851 (526,518) (1,569,440) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions Purchases of capital assets Proceeds from long -term debt Principal paid on long -term debt Interest paid on long -term debt Net Cash Used by Capital and Related Financing Activities 1,821,961 1,883,753 3,122,743 (1,923,138) (2,488,396) (3,416,757) - 1,195,000 (213,066) - (1,039,352) (98,067) (5,637) (206,098) (412,310) (610,280) (344,464) CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS - January 1 CASH AND CASH EQUIVALENTS - December 31 Noncash investing, capital and financing activities: Contributions of capital assets from government 128,610 206,937 126,535 128,610 206,937 126,535 1,565,789 274,589 (499,072) 3,738,586 3,929,540 4,989,617 $ 5,304,375 $ 4,204,129 $ 4,490,545 $ 159,587 $ - $ - -52- r EXHIBIT E -3 Totals Arena 2002 2001 $ (32,328) $ (478,415) $ (386,022) 53,529 1,328,015 1,261,888 (10,958) 3,120,376 2,439,829 - 12,616 22,185 - 88,701 169,645 11,062 41,361 (28,541) 746 369 (12,471) - 127,574 18,283 (22,789) (31,187) 33,784 3,071 9,506 15,184 - 10,471 (8,310) - 44,331 (107,368) 2,333 4,273,718 3,418,086 4,035,071 - (3,500) (6,063,678) (513,647) (3,500) (2,028,607) (513,647) - 6,828,457 3,777,581 - (7,828,291) (6,412,765) - 1,195,000 1,945,000 - (1,252,418) (402,498) _ (309,802) (262,845) - (1,367,054) (1,355,527) 728 462,810 619,598 728 462,810 619,598 (439) 1,340,867 2,168,510 65,659 12,723,402 10,554,892 $ 65,220 $ 14,064,269 $ 12,723,402 $ - $ 159,587 $ - -53- THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost - reimbursement basis. Records are maintained on the accrual basis of accounting. Insurance Fund - This fund was established to accumulate resources to pay deductibles and uninsured claims. The fund also will pay for the majority of the general liability insurance and workers compensation insurance premiums for the City. The City is currently accumulating resources needed to finance its uninsured risk of loss. 1 CITY OF ROSEMOUNT EXHIBIT F -1 BALANCE SHEET INTERNAL SERVICE FUND December 31, 2002 (With Comparative Totals for December 31, 2001) Insurance Fund 2002 2001 ASSETS Cash and investments Accounts receivable Prepaid items TOTAL ASSETS LIABILITIES AND EQUITY LIABILITIES Accounts payable EQUITY Retained earnings, unreserved TOTAL LIABILITIES AND EQUITY -54- S 564,342 $ 570,439 - 16,171 69,620 53,741 $ 633,962 $ 640,351 $ 13,293 $ 14,268 620,669 626,083 $ 633,962 $ 640,351 CITY OF ROSEMOUNT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS INTERNAL SERVICE FUND For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) EXHIBIT F -2 Insurance Fund 2002 2001 OPERATING REVENUES Other $ 24,451 $ 23,392 OPERATING EXPENSES Supplies 33,093 7,779 Other professional services 28,403 28,878 Insurance 186,336 150,781 Total Operating Expenses 247,832 187,438 Operating Loss (223,381) (164,046) NONOPERATING REVENUES Taxes 200,000 190,000 Investment income 16,832 23,335 Net increase in the fair value of investments 1,135 - Total Nonoperating Revenues 217,967 213,335 NET INCOME (5,414) 49,289 RETAINED EARNINGS - January 1 626,083 576,794 RETAINED EARNINGS - December 31 $ 620,669 $ 626,083 -55- 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF ROSEMOUNT COMPARATIVE STATEMENT OF CASH FLOWS INTERNAL SERVICE FUND For the Years Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) EXHIBIT F -3 Insurance Fund CASH FLOWS FROM OPERATING ACTIVITIES Operating loss Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities Non - operating revenue Change in Assets and Liabilities Accounts receivable Prepaid items Accounts payable Net Cash Used by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Investment income Net Cash Provided by Noncapital Financing Activities Net Increase (Decrease) in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS - January 1 CASH AND CASH EQUIVALENTS - December 31 -56- 2002 2001 $ (223,381) $ (164,046) 200,001 190,000 16,171 (12,593) (15,879) (21,285) (975) 2,268 (24,063) (5,656) 17,966 23,335 17,966 23,335 (6,097) 17,679 570,439 552,760 $ 564,342 $ 570,439 THIS PAGE INTENTIONALLY LEFT BLANK AGENCYFUNDS Agency Funds are used to account for assets held by a governmental unit as an agent for individuals, private organizations, other governments and /or other funds. Agency Funds are purely custodial and thus do not involve measurement of results of operations. Resiliency Fund — This fund is used to help families in need when no other existing funding source is available. This fund is part of a pilot child welfare reform project. EXHIBIT G -1 CITY OF ROSEMOUNT BALANCE SHEET AGENCY FUND December 31, 2002 (With Comparative Totals for December 31, 2001) Totals ASSETS Cash and investments TOTAL ASSETS LIABILITIES Due to agencies TOTAL LIABILITIES -57- Resiliency 2002 2001 $ - $ - $ 79 $ - $ - $ 79 - - 79 $ - $ - $ 79 CITY OF ROSEMOUNT STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUND For the Year Ended December 31, 2002 EXHIBIT G -2 Balance Balance 1/1/02 Additions Deductions 12/31/02 RESILIENCY ( #802) Assets Cash and investments TOTALASSETS Liabilities Due to agencies TOTAL LIABILITIES $ 79 $ - $ 79 $ - $ 79 $ - $ 79 $ $ 79 $ - $ 79 $ $ 79 $ - $ 79 $ -58- COMPONENT UNIT — PORT AUTHORITY The Port Authority is a discretely presented component unit within the City of Rosemount's financial statements. The Port Authority was created to carry out certain redevelopment projects within the City of Rosemount. Debt issued for the Port Authority activities are general obligations of the City. The financial statements present all generic ' fund types that report activity of the Port Authority. I I I THIS PAGE INTENTIONALLY LEFT BLANK 1 CITY OF ROSEMOUNT COMBINING BALANCE SHEET COMPONENT UNIT - PORT AUTHORITY December 31, 2002 (With Comparative Totals for December 31, 2001) Special Revenue Funds Debt Service Funds Port G.O. Municipal Public G.O. Port Port Authority Authority Building (Armory Facility Bonds Authority Refunding ' ASSETS Current Assets Cash and investments Investment with fiscal agent $ 1,817,119 $ 329,539 - - $ 195,081 $ 2,119,860 $ - - - 2,333,811 Special assessments receivable - - - - - Notes receivable 1,051,547 - - - - Prepaid items Fixed assets 473 - - - - - - - - - Other Debits Amount available in debt service funds Amount to be provided for retirement - - - - - ' of long -term obligations - - - - TOTAL ASSETS $ 2,869,139 $ 329,539 $ 195,081 $ 2,119,860 $ 2,333,811 ' LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $ 10,447 $ - $ - $ - $ - ' Contracts payable 238,875 - - - - Deposits payable 4,898 - - - - Deferred revenues 1,051,547 - - - - ' Bonds payable - - - - - Total Liabilities 1,305,767 - - - - Fund Equity and Other Credits Investment in general fixed assets - - - - - Fund Balances Reserved for prepaid items 473 - - - Reserved for debt service - 329,539 195,081 2,119,860 2,333,811 Unreserved Undesignated 1,562,899 - - - - TotalFund Equity and Other Credits 1,563,372 329,539 195,081 2,119,860 2,333,811 TOTAL LIABILITIES, FUND EQUITY AND OTHER CREDITS $ 2,869,139 $ 329,539 $ 195,081 $ 2,119,860 $ 2,333,811 1 -59- ' EXHIBIT H -1 Account Grouos 1 -60- G.O. Port General Fixed Long -Term Total Authority 2002C Assets Debt 2002 2001 $ 144,707 $ - $ - $ 4,606,306 $ 3,367,561 - _ _ 2,333,811 2,334,283 194,407 194,407 337,610 - - 1,051,547 1,158,767 - - - 473 399 ' - 492,530 - 492,530 368,593 - - 5,122,998 5,122,998 4,328,835 - - 6,657,002 6,657,002 5,986,165 $ 339,114 $ 492,530 1 11,780,000 1 20,459,074 $ 17,882,213 $ - $ 10,447 $ 467,557 238,875 15,934 - - - 4,898 6,167 194,407 - 1,245,954 1,496,377 = 11,780,000 11,780,000 10,315,000 194,407 - 11,780,000 13,280,174 12,301,035 - 492,530 492,530 368,593 - - 144,707 - 473 5,122,998 399 4,328,835 - - - 1,562,899 883,351 144,707 492,530 - 7,178,900 5,581,178 $ 339,114 $ 492,530 $ 11,780,000 $ 20,459,074 $ 17,882,213 1 -60- CITY OF ROSEMOUNT 1 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPONENT UNIT - PORT AUTHORITY For the Year Ended December 31, 2002 (With Comparative Totals for the Year Ended December 31, 2001) REVENUES Taxes Tax increments Intergovernmental Investment income Net increase in the fair value of investments Principal on notes Donations and other Total Revenues EXPENDITURES Salaries and wages Engineering Legalfees Other professional services Insurances Other Capital outlay Bond principal Interest on bonds Fiscal agent fees Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt Sale of general fixed assets Operating transfer in - primary government Operating transfer out - primary government Operating transfer in Operating transfer out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses FUND BALANCES - January 1 Equity transfers FUND BALANCES - December 31 Special Revenue Debt Service Fund Funds G.O. Municipal Public Port Authority Building (Armory ) Facility Bonds 696,551 - 112,171 $ - $ 346,852 $ 169,664 155,682 - - 144,800 - - 54,964 2,114 77 96,083 - - 545,791 - - 997,320 348,966 169,741 5,037 - - 189,657 - - 22,152 - - 118,612 - - 3,144 - - 14,779 - - 2,274,514 - - - 85,000 - - 159,028 89,844 - 537 374 2,627,895 244,565 90,218 (1,630,575) 104,401 79,523 1,779,743 109,146 125,000 (166,800) (233,443) 1,613,646 -61- 1 79,523 1 (16,929) 104,401 883,750 225,138 3,387 696,551 - 112,171 $ 1,563,372 $ 329,539 $ 195,081 -61- 1 EXHIBIT H -2 Debt Service Fund G.O. Port Port Authority G.O. Port Totals Authority Refunding Authority 2002C 2002 2001 $ 473,880 $ - $ - $ 990,396 $ 569,414 - - - 155,682 196,018 - 144,800 - 42,591 115,141 134,613 349,500 713,464 - - - 96,083 7,342 - - - - 73,834 - - - 545,791 5,552 516,471 115,141 134,613 2,282,252 1,565,624 - - - 5,037 3,884 - - - 189,657 - - - - 22,152 23,035 - - - 118,612 281,007 - - - 3,144 3,644 - - - 14,779 16,759 - 2,274,514 2,897,153 245,000 - - 330,000 200,000 167,400 115,613 - 531,885 449,171 924 - - 1,835 1,459 413,324 115,613 - 3,491,615 3, 876,112 103,147 (472) 134,613 (1,209,363) (2,310,488) - 10,094 1,789,837 2,020,768 - 109,146 2 - - 125,000 1,137,063 - - - (166,800) - 233,443 - - 233,443 - - - (233,443) (142,978) 233,443 - 10,094 1,857,183 3,157,833 336,590 (472) 144,707 647,820 847,345 1,766,027 2,334,283 - 5,212,585 4,365,240 17,243 - - 825,965 - $ 2,119,860 $ 2,333,811 $ 144,707 $ 6,686,370 $ 5,212,585 -62- THIS PAGE INTENTIONALLY LEFT BLANK r GENERAL FIXED ASSETS ACCOUNT GROUP CITY OF ROSEMOUNT EXHIBIT 1 -1 SCHEDULE OF GENERAL FIXED ASSETS December 31, 2002 GENERAL FIXED ASSETS Land $ 3,208,609 Buildings 9,901,877 Machinery and equipment 3,816,079 Licensed vehicles 2,504,244 TOTAL $ 19,430,809 INVESTMENT IN GENERAL FIXED ASSETS: General fund and capital projects fund sources -63- $ 19,430,809 THIS PAGE INTENTIONALLY LEFT BLANK r C FINANCIAL SCHEDULES I EXHIBIT J -1 1 -64- CITY OF ROSEMOUNT, MINNESOTA ' COMBINED SCHEDULE OF BONDS PAYABLE DECEMBER 31, 2002 ' Year Original Bonds Coupon Rates Issued Amount Retired Outstanding On Bonds BONDEDINDEBTEDNESS GENERAL OBLIGATION BONDS Community Center, 1992C 1992 $ 1,080,000 $ 345,000 $ 735,000 5.00% - 6.60% City Hall Refunding, 1993D ' 1993 845,000 845,000 3.25% - 4.50% Fire Station, 1996A 1996 1,780,000 395,000 1,385,000 4.10 % - 6.00% ' Community Center Refunding, 2001 E ' TOTAL GENERAL OBLIGATION BONDS 2001 725,000 $ 4,430,000 - $ 1,585,000 $ 725,000 2,845,000 3.10% - 4.55% SPECIAL ASSESSMENT BONDS ' Improvement, 1991A Improvement, 1991B 1991 1991 $ 1,180,000 265,000 $ 1,180,000 240,000 $ - 25,000 5.00 % -6.30% 4.40% - 5.90% Improvement, 1992A 1992 895,000 770,000 125,000 3.35% - 5.40% Improvement, 1992D 1992 1,470,000 1,180,000 290,000 3.75% -6.10% Improvement, 1993A Improvement, 1994A 1993 1994 555,000 1,605,000 405,000 865,000 150,000 740,000 3.00% - 5.00% 4.90% - 5.50% Improvement, 1995A 1995 1,900,000 1,160,000 740,000 3.90% -5.30% Improvement, 1997A 1997 2,800,000 920,000 1,880,000 4.20% - 5.00% Improvement, 1997B Improvement, 1998A 1997 1998 1,595,000 2,010,000 525,000 655,000 1,070,000 1,355,000 4.00 % -4.70% 3.90 % -4.70% Improvement, 19988 1998 2,805,000 630,000 2,175,000 4.00% - 4.50% Improvement, 1998C 1998 880,000 365,000 515,000 3.50% - 3.90% ' Improvement, 1999A Improvement, 19998 1999 1999 3,715,000 4,395,000 745,000 575,000 2,970,000 3,820,000 4.25% - 4.80% 4.15% - 5.05% Improvement, 2001A 2001 1,325,000 1,325,000 3.00 % -4.40% Improvement, 2002A 2002 3,395,000 - 3,395,000 2.25 % -4.00% TOTAL SPECIAL ASSESSMENT BONDS $ 30,790,000 $ 10,215,000 $ 20,575,000 REVENUE BONDS Storm Water, 19928 1992 $ 1,525,000 $ 1,525,000 $ - 3.35% - 5.75% Water Refunding, 1993C 1993 945,000 550,000 395,000 3.75 % -5.00% Storm Water, 1994B 1994 335,000 230,000 105,000 4.25% - 5.00% Storm Water, 19968 1996 1,035,000 270,000 765,000 4.25 % - 5.75% Water, 1996C 1996 500,000 295,000 205,000 4.25% - 5.10% Storm Water, 1999C 1999 855,000 75,000 780,000 4.70% - 5.40% ' Water, 2000A 2000 1,160,000 30,000 1,130,000 4.40% -5.40% Storm Water, 20018 2001 1,140,000 1,140,000 4.00 % - 4.875% Storm Water Refunding, 2001 D' 2001 805,000 805,000 2.50% - 4.00% Water& Storm Water, 20028 2002 1,195,000 - 1,195,000 3.00% -4.60% TOTAL REVENUE BONDS $ 9,495,000 $ 2,975,000 $ 6,520,000 OTHER DEBT State Aid Street Bonds, 1994C 1994 $ 700,000 $ 535,000 $ 165,000 3.75% - 5.60% ' TOTAL PRIMARY GOVERNMENT $ 45,415,000 $ 15,310,000 $ 30,105,000 COMPONENT UNIT DEBT ' Municipal Building, 1992E 1992 3,425,000 1,000,000 2,425,000 3.40% - 6.60% Port Authority, 1993E 1993 580,000 235,000 345,000 4.25% - 6.40% Port Authority, 1994A 1994 1,630,000 505,000 1,125,000 5.20 % -5.88% Municipal Building Refunding, 1998A ' 1998 2,405,000 - 2,405,000 4.30% - 5.15% Port Authority, 2000B 2000 1,750,000 110,000 1,640,000 4.50% - 5.00% ' Public Facility, 2001C 2001 2,045,000 2,045,000 4.00% - 5.00% Port Authority, 2002C 2002 1,795,000 - 1,795,000 2.25% -4.00% ' TOTAL COMPONENT UNIT $ 13,630,000 $ 1,850,000 $ 11,780,000 TOTAL REPORTING ENTITY $ 59,045,000 $ 17,160,000 $ 41,885,000 ' 'Refunding Bonds 1 -64- CITY OF ROSEMOUNT COMBINED SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2002 65 General Bonded Special Assessment Other General Bonded Revenue Bonded Debt Debt Debt Debt Year Principal Interest Principal Interest Principal Interest Principal Interest 2003 120,000 149,979 2,925,000 797,932 80,000 6,960 540,000 294,140 2004 185,000 142,423 3,545,000 687,489 85,000 2,380 635,000 262,491 2005 195,000 133,441 3,375,000 547,309 - - 670,000 234,291 2006 210,000 123,555 2,960,000 415,601 460,000 210,713 2007 210,000 112,964 2,245,000 306,523 475,000 191,541 2008 225,000 99,245 2,085,000 240,186 495,000 171,125 2009 240,000 89,323 1,530,000 121,235 355,000 149,431 2010 250,000 76,046 950,000 63,978 380,000 132,821 2011 265,000 61,825 710,000 25,229 400,000 114,560 2012 270,000 46,870 200,000 4,000 415,000 94,905 2013 290,000 31,029 50,000 2,000 340,000 77,176 2014 120,000 19,280 - - 355,000 60,831 2015 130,000 11,935 - 375,000 43,359 2016 135,000 4,050 - 310,000 26,849 2017 - - - 205,000 14,679 2018 - 110,000 5,060 2019 2020 2021 2022 - - - _ $ 2,845,000 $ 1,101,964 $ 20,575,000 $ 3,211,481 $ 165,000 $ 9,340 $ 6,520,000 $ 2,083,972 65 EXHIBIT J -2 66 Total Total Primary Government Component Unit Reporting Entity Principal Interest Principal Interest Principal Interest 3,665,000 1,249,011 410,000 594,880 4,075,000 1,843,890 4,450,000 1,094,783 815,000 552,150 5,265,000 1,646,932 ' 4,240,000 915,041 850,000 516,570 5,090,000 1,431,611 3,630,000 749,869 870,000 477,992 4,500,000 1,227,861 2,930,000 611,028 920,000 436,793 3,850,000 1,047,820 2,805,000 510,556 960,000 392,072 3,765,000 902,628 ' 2,125,000 359,989 925,000 344,363 3,050,000 704,352 1,580,000 272,845 900,000 298,839 2,480,000 571,684 1,375,000 201,614 955,000 252,113 2,330,000 453,727 885,000 145,775 615,000 212,166 1,500,000 357,941 680,000 110,205 645,000 180,478 1,325,000 290,683 475,000 80,111 415,000 149,669 890,000 229,781 505,000 55,294 435,000 126,476 940,000 181,770 ' 445,000 30,899 465,000 101,670 910,000 132,569 205,000 14,679 495,000 75,058 700,000 89,736 110,000 5,060 515,000 46,834 625,000 51,894 - - 135,000 29,230 135,000 29,230 ' 145,000 22,750 145,000 22,750 150,000 15,500 150.000 15,500 - - 160,000 8,000 160,000 8,000 S 30,105,000 1 6,406,757 5 11,780,000 1 4,833,602 1 41,885,000 8 11,240,359 ' 66 THIS PAGE INTENTIONALLY LEFT BLANK n 1 STATISTICAL SECTION TABLE 1 CITY OF ROSEMOUNT ' GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY FUNCTION YEARS 1993 THROUGH 2002 (UNAUDITED) General Public Public Park and Year Government Safety Works Recreation Transfers Total 1993 $ 1,116,552 $ 955,414 $ 926,325 $ 581,000 $ 13,105 $ 3,592,396 1994 1,090,407 1,086,553 1,045,093 550,954 444,669 4,217,676 1995 1,074,859 1,211,425 1,236,215 628,270 208,399 4,359,168 1996 1,041,383 1,292,439 1,495,630 549,173 117,950 4,496,575 1997 1,000,732 1,395,627 1,406,359 572,489 130,400 4,505,607 ' 1998 1999 1,227,524 1,132,331 1,442,652 1,496,445 1,450,156 1,638,278 601,450 628,145 - 4,721,782 4,895,199 2000 1,142,410 1,579,038 1,887, 570 691,126 192,000 5,492,144 2001 1,363,241 1,710,016 1,696,322 751,673 897,834 6,419,086 2002 1,526,727 1,884,975 1,801,461 785,226 - 5,998,389 u 1 -67- CITY OF ROSEMOUNT GENERAL FUND REVENUES AND OTHER FINANCING SOURCES BY SOURCE YEARS 1993 THROUGH 2002 (UNAUDITED) TABLE 2 Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 .: Licenses Charges Fines and Inter- for and Recreational Taxes Permits Governmental Services Forfeitures Fees Other Transfers Total $1,448,171 $ 282,116 $ 1,023,970 $ 412,679 $ 60,960 $ 79,688 $ 161,769 $ 71,734 $ 3,541,087 1,878,109 302,859 1,079,660 372,318 100,074 37,298 251,596 287,495 4,309,409 2,305,352 262,946 1,097,460 401,211 139,680 177,076 149,585 3,500 4,536,810 2,476,676 239,129 1,119,492 314,049 111,929 173,794 151,230 3,500 4,589,799 2,468,582 259,012 1,240,069 480,657 113,972 196,002 99,687 3,500 4,861,481 2,693,105 363,238 1,274,373 351,650 72,084 201,352 156,216 3,500 5,115,518 2,626,864 623,463 1,318,132 486,379 91,441 207,578 117,798 3,500 5,475,155 2,916,269 588,304 1,457,390 713,892 72,067 224,033 240,653 3,500 6,216,108 3,188,409 790,396 1,185,590 700,702 88,524 222,921 268,625 3,500 6,448,667 4,556,291 797,688 666,057 702,775 85,835 231,287 268,377 114,800 7,423,110 .: = = = = = = r M = = M = = M M = = = = TABLE 3 CITY OF ROSEMOUNT PROPERTY TAX LEVIES AND COLLECTIONS YEARS 1993 THROUGH 2002 (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. .• 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 1993 $ 2,913,401 $ 2,802,826 96.20% $ 31,063 $ 2,833,889 97.27% $ 79,512 2.73% 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% (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. .• CITY OF ROSEMOUNT TABLE 4 (1) The State Legislature changed the concept of assessed value to tax capacity in 1988 and value classification percentages were reduced. On a statewide basis, the new tax capacity is approximately 12% of the previous assessed valuation depending on the classification mix. For 1989, the State Legislature changed the calculation of tax capacity for homestead property from a gross tax capacity to a net tax capacity by again changing classification percentages. This change caused a net reduction in total residential value from 1988 to 1989 in spite of continued development of residential properties. Certain other classification percentages were also changed. 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. -70- ASSESSED VALUE (OR TAX CAPACITY) AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY YEARS 1993 THROUGH 2002 (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) 1993 $ 8,396,622 $ 403,146,500 $ 713,886 $ 16,201,100 $ 9,110,508 $ 419,347,600 2.17% $ - 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 1.17% 3,859,896 (1) The State Legislature changed the concept of assessed value to tax capacity in 1988 and value classification percentages were reduced. On a statewide basis, the new tax capacity is approximately 12% of the previous assessed valuation depending on the classification mix. For 1989, the State Legislature changed the calculation of tax capacity for homestead property from a gross tax capacity to a net tax capacity by again changing classification percentages. This change caused a net reduction in total residential value from 1988 to 1989 in spite of continued development of residential properties. Certain other classification percentages were also changed. 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. -70- I L'i THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ROSEMOUNT PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTAL UNITS YEARS 1993 THROUGH 2002 (UNAUDITED) (1) Beginning with 1990, includes Metropolitan Council, Regional Transit District, Metropolitan Mosquito Control, Dakota County Technical College and Dakota County Light Rail Transit. (2) Beginning with property taxes payable in 1989, taxes are determined by multiplying the Gross Tax Capacity by the Tax Capacity Rate, expressed as a percentage. This replaces the use of Assessed Value multiplied by Mill Rates. Prior to 1989, mill rates were computed on the basis of total levies and do not reflect reductions for property tax credits. Beginning with taxes payable in 1990, net tax capacity has replaced gross tax capacity as the basis on which taxes are levied. (3) 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 the three school districts. n/a - Not Applicable -71- ISD 196 ISD 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 1993 29.810 n/a 60.188 n/a 72.397 n/a 71.391 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 (1) Beginning with 1990, includes Metropolitan Council, Regional Transit District, Metropolitan Mosquito Control, Dakota County Technical College and Dakota County Light Rail Transit. (2) Beginning with property taxes payable in 1989, taxes are determined by multiplying the Gross Tax Capacity by the Tax Capacity Rate, expressed as a percentage. This replaces the use of Assessed Value multiplied by Mill Rates. Prior to 1989, mill rates were computed on the basis of total levies and do not reflect reductions for property tax credits. Beginning with taxes payable in 1990, net tax capacity has replaced gross tax capacity as the basis on which taxes are levied. (3) 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 the three school districts. n/a - Not Applicable -71- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TABLE 5 ISD 200 Totals Market School School School Referendum Dakota Special District District District Rates (3) County Districts (1) No. 196 No. 199 No. 200 n/a 26.558 3.703 120.259 132.468 131.462 n/a 27.474 4.964 125.668 122.974 125.139 n/a 27.994 4.702 130.822 129.321 133.464 n/a 26.626 5.108 128.619 115.418 126.464 n/a 25.721 4.995 124.532 121.986 121.853 0.10070 27.349 5.797 132.036 127.289 120.597 0.00618 28.322 6.702 133.045 132.344 145.922 0.06479 27.247 6.455 126.268 116.422 127.918 0.11424 25.320 6.378 121.500 112.821 119.275 0.01366 33.102 5.021 126.552 114.493 120.612 -72- TABLE 6 CITY OF ROSEMOUNT SCHEDULE OF THE LARGEST TAXPAYERS DECEMBER 31, 2002 (UNAUDITED) Percentage Local of Total Tax Local Tax Taxpayer Type of Business Capacity (1) Capacity 1 Great Northern Oil Co. Oil Refinery $ 1,400,031 10.35% 2. Koch Refining Co. Oil Refinery 693,768 5.13% 3. Northern States Power Co. Utility 354,272 2.62% 4. Clarel Corporation (Cub Foods) Retail 236,565 1.75% 5. Limerick Way LLC Townhouses 111,446 0.82% 6. CF Industries, Inc. ( Cenex) Fertilizer 93,674 0.69% 7. Cue Properties LLC (Wintz) Trucking/Warehouse 90,971 0.67% 8. Continental Nitrogen & Resources (CNR) Fertilizer 85,335 0.63% 9. CP Limited Partnership (Rosemount Woods) Manufactured Housing 78,037 0.58% 10. D.R. Horton Inc. Minnesota Townhouses 75,394 0.56% 11. Centex Homes Townhouses 73,918 0.55% 12. Greif Brothers Cooperage Manufacturing 72,145 0.53% 13. Bigos - Rosemount LLC Manufacturing 52,799 0.39% (Cannon Equipment) 14. Webb Properties LLC Manufacturing 47,437 0.35% 15. Gruett- Labriola Partnership (AWP) Manufacturing 40,643 0.30% $ 3,506,436 25.92% Total City "Local" Tax Capacity $ 13,525,367 (1) These figures do not include the "State Tax" amount that now applies to only commercial and industrial properties. 9011 TABLE 7 CITY OF ROSEMOUNT ' SPECIAL ASSESSMENTS RECEIVABLE AND COLLECTIONS YEARS 1993 THROUGH 2002 (UNAUDITED) Total Assessments Total Assessments Uncollected Uncollected Beginning Additional End Year of Year Assessments Collections (1) of Year ' 1993 $ 1,025,444 $ 1,253,706 $ 1,187,652 $ 1,091,498 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 () Includes prepayments P Y and foreclosures -74- TABLE 8 CITY OF ROSEMOUNT COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 2002 (UNAUDITED) Estimated Market Value $ 1,153,553,300 Legal Debt Margin: Debt Limitation - 2% of Estimated Market Value Debt Applicable to Limitation: Total Bonded Debt Less: Special Assessment Bonds Tax Increment Bonds Revenue Bonds Port Authority Bonds State Aid Street Bonds Amount Available for Repayment of General Obligation Bonds Total Debt Applicable to Limitation Legal Debt Margin $ 41,885,000 $ 20,575,000 6,520,000 11,780,000 165,000 1,001,559 40,041,559 $ 23,071,066 1,843,441 -75- $ 21,227,625 1P THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ROSEMOUNT RATIO OF NET BONDED DEBT TO ASSESSED VALUE (OR TAX CAPACITY) AND MARKET VALUE AND NET BONDED DEBT PER CAPITA YEARS 1993 THROUGH 2002 (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 -76- 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 1993 10,478 $ 9,110,508 $ 419,347,600 $23,670,000 $ 1,013,577 20,640,000 $ 2,016,423 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 17,293 13,525,367 1,153,553,300 41,885,000 1,001,559 39,040,000 1,843,441 (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 -76- TABLE 9 Net Bonded Debt as a Percent of Net Bonded Tax Market Debt Capacity (2) Value Per Capita 22.13% 0.48% $ 192 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% 107 -77- TABLE 10 CITY OF ROSEMOUNT RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT (1) TO TOTAL GENERAL FUND EXPENDITURES YEARS 1993 THROUGH 2002 (UNAUDITED) (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. -78- Ratio of Total Debt Service Total General to Debt Fund General Fund Year Principal (1) Interest (1) Service (1) Expenditures (2) Expenditures (3) 1993 $ 115,000 $ 122,225 S 237,225 $ 3,592,396 6.6% 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% (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. -78- ' TABLE 11 CITY OF ROSEMOUNT ' COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT ' GENERAL OBLIGATION BONDS DECEMBER 31, 2002 (UNAUDITED) Net General ' Obligation Percentage Amount Bonded Debt Applicable Applicable Governmental Units Outstanding (2) to City (7) to City Direct Debt: City of Rosemount $ 1,843,441 (3) 100.00% $ 1,843,441 ' Overlapping Debt (1): School Districts: I.S.D. 196 - Rosemount 137,560,432 (4) 10.20% 14,031,164 I.S.D. 199 - Inver Grove Heights 9,830,000 6.20% 609,460 I.S.D. 200 - Hastings 43,895,000 0.20% 87,790 ' Dakota County 69,335,000 4.20% 2,912,070 Regional: Metropolitan Council 30,815,000 (5) 0.60% 184,890 Metropolitan Transit District 175,505,000 0.70% 1,228,535 f Total Overlapping Debt $ 466,940,432 $ 19,053,909 ' Total Direct & Overlapping Debt $ 468,783,873 $ 20,897,350 (1) Only those units with debt outstanding are shown here. Overlapping (2) debt figures exclude debt supported by revenues and tax and aid anticipation debt. Net (3) general obligation bonded debt of the city supported by property taxes (see table 9). (4) Includes $19,630,000 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. ' -79- TABLE 12 CITY OF ROSEMOUNT REVENUE BOND COVERAGE YEARS 1993 THROUGH 2002 (UNAUDITED) Net Revenue Debt Service Available Requirements Gross For Debt Year Revenue Expenses (1) S ervice Principal (2) Interest Total Coverage 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 $ 1,122,439 $ 795,959 $ 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 1,770,676 326,480 $ 65,000 $ 233,353 $ 298,353 449,307 100,000 203,795 303,795 381,285 135,000 213,988 348,988 493,253 215,000 204,663 419,663 401,039 1,105,000 277,370 1,382,370 554,671 320,000 193,193 513,193 783,636 330,000 179,213 509,213 1,095,456 350,000 199,265 549,265 885,843 395,000 241,294 636,294 827,144 1,245,000 291,881 1,536,881 109.43% 147.90% 109.25% 117.54% 29.01% 108.08% 153.89% 199.44% 139.22% 53.82% (1) Figure does not include depreciation expense (2) 1997 includes call payment on 1989A Revenue Bonds & 2002 includes call payment on 1992B Revenue Bonds. :e u I i CITY OF ROSEMOUNT DEMOGRAPHIC STATISTICS YEARS 1993 THROUGH 2002 (UNAUDITED) TABLE 13 Per Capita School Unemployment Median Year Population (1) Income (2) Enrollment (3) Rate (4) Age (5) 1993 10,478 $ 23,668 5,197 3.8% 30.2 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 35,321 3,190 2.2% <35.4 2001 15,270 n/a 3,638 2.8% <35.4 2002 17,293 n/a 4,262 3.7% <35.4 (1) 2000 is a regular decennial census figure. All other years prior to 2002 are best available estimates provided by the Minnesota State Demographic Center and 2002 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. n/a - Data not available. -81- TABLE 14 CITY OF ROSEMOUNT PROPERTY VALUE AND CONSTRUCTION YEARS 1993 THROUGH 2002 (UNAUDITED) (1) Estimated market value - totals are from Table 4. -82- M M M M M M = r M M = = = = = M � M M Commercial /Industrial Residential Construction Construction Property Value (1) # of # of Year Commercial Residential Agricultural Total Permits Value Permits Value 1993 $ 117,454,900 $ 284,026,400 $ 17,866,300 $ 419,347,600 25 $ 12,775,670 541 $ 25,964,010 1994 125,938,000 320,080,000 17,213,700 463,231,700 29 6,798,974 606 25,175,253 1995 133,848,200 371,130,100 17,340,400 522,318,700 43 8,396,669 598 21,980,180 1996 138,085,100 412,697,700 17,825,300 568,608,100 51 7,041,948 604 21,399,002 1997 143,300,500 455,945,000 19,561,100 618,806,600 57 8,650,087 544 15,523,565 1998 150,422,500 486,616,300 20,740,300 657,779,100 72 8,086,134 667 23,853,221 1999 171,330,700 538,288,100 19,882,400 729,501,200 66 7,130,240 955 43,820,487 2000 188,161,200 636,261,900 22,048,600 846,471,700 68 10,070,976 794 42,054,241 2001 198,595,800 753,624,600 24,520,300 976,740,700 88 17,455,749 921 65,441,418 2002 221,178,800 904,074,000 28,300,500 1,153,553,300 91 21,465,696 1,307 60,933,124 (1) Estimated market value - totals are from Table 4. -82- M M M M M M = r M M = = = = = M � M M s s i 1 TABLE 15 CITY OF ROSEMOUNT MISCELLANEOUS STATISTICS DECEMBER 31, 2002 (UNAUDITED) Date of Incorporation 1858 Form of Government (Statutory) Council /City Administrator Number of Employees: Regular Full -time 68 Part-time or Temporary 144 Area in Square Miles 36 City of Rosemount Facilities and Services: Miles of Streets 113.89 Number of Street Lights 979 Culture and Recreation: Community Centers 1 Parks 23 Park Acreage 301 Tennis Courts 4 Fire Protection: Number of Stations 2 Number of Fire Personnel and Officers 44 Number of Calls Answered 537 Number of Vehicles 12 and 1 Trailer Police Protection: Number of Stations 1 Number of Police Personnel and Officers: Sworn Officers 17 Other Police Personnel 4 Number of Calls for Service 13,572 Number of Patrol Miles 175,528 Number of Patrol Vehicles: Marked 7 Unmarked 3 Sewerage System: Miles of Sanitary Sewers 59.92 Miles of Storm Sewers 40.75 Number of Service Connections 4,795 Water System: Miles of Water Mains: Municipal 72.82 Rural 12.39 Number of Service Connections 4,910 Number of Wells: Municipal 4 Rural 2 Number of Water Towers 3 Number of Fire Hydrants 758 Daily Average Consumption in Gallons 1,628,620 Maximum Daily Pumping Capacity in Gallons 6,000,000 Public Education Facilities: Number of Elementary Schools 2 Number of Secondary Schools 2 Number of Special Education Schools 1 (Dakota County Technical College) -83- THIS PAGE INTENTIONALLY LEFT BLANK