HomeMy WebLinkAbout3.c. Presentation and Acceptance of 2016 Comprehensive Annual Financial Report
EXECUTIVE SUMMARY
City Council Meeting Date: June 6, 2017
AGENDA ITEM: Presentation and Acceptance of 2016
Comprehensive Annual Financial Report
(CAFR)
AGENDA SECTION:
Presentations
PREPARED BY: Jeff May, Finance Director AGENDA NO. 3.c.
ATTACHMENTS: Resolution, PowerPoint Presentation,
CAFR, Management Report, Special
Purpose Audit Reports, Opinion
APPROVED BY: LJM
RECOMMENDED ACTION: Motion to adopt a Resolution Accepting the 2016
Comprehensive Annual Financial Report.
ISSUE
Review and accept the 2016 Comprehensive Annual Financial Report (CAFR).
BACKGROUND
A representative from our audit firm, Malloy, Montague, Karnowski, Radosevich, & Co., P.A. (MMKR),
will be here on Tuesday evening, June 6th, to review the City of Rosemount’s 2016 CAFR. The
representative will give a brief presentation, highlighting items that may be worthy of your attention and
will also be available to answer any questions that you may have
SUMMARY
Staff recommends adoption of the above motion to accept the 2016 CAFR.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2017 -
A RESOLUTION ACCEPTING THE 2016 COMPREHENSIVE ANNUAL
FINANCIAL REPORT
WHEREAS, the City of Rosemount has been presented its 2016 Comprehensive
Annual Financial Report, prepared with the assistance of the firm of Baker Tilly Virchow
Krause, LLP and audited by our audit firm of Malloy, Montague, Karnowski, Radosevich,
& Co., P.A.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Rosemount, accepts its 2016 Comprehensive Annual Financial Report, audited by our
audit firm of Malloy, Montague, Karnowski, Radosevich, & Co., P.A.
ADOPTED this 6th day of June, 2017.
_____________________________
William H. Droste, Mayor
ATTEST:
__________________________
Clarissa Hadler, City Clerk
CITY OF ROSEMOUNT
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2016
Aaron J. Nielsen, CPA
Opinion on Financial Statements
Financial statements are fairly presented
in accordance with accounting principles
generally accepted in the United States of
America
Reports on Internal Controls and
Compliance
Financial Statement Audit
MN Legal Compliance Audit
AUDITOR’S ROLE
Opinion on Financial Statements
Unmodified opinion –statements are fairly
presented
Internal Controls Over Financial Reporting
Significant deficiency -City has a limited
segregation of duties
Legal Compliance Audit Findings
Timely payment of invoices –1 of 40 tested
AUDIT OPINIONS AND FINDINGS
GOVERNMENTAL FUNDS
Increase
2016 2015 (Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable 10,113$ 79,954$ (69,841)$
Restricted 9,301,251 11,380,258 (2,079,007)
Committed 181,276 190,941 (9,665)
Assigned 11,367,472 9,905,387 1,462,085
Unassigned 6,918,833 6,506,697 412,136
Total – governmental funds 27,778,945$ 28,063,237$ (284,292)$
Total by fund
General 9,888,534$ 9,557,677$ 330,857$
Debt Service 4,307,191 5,256,841 (949,650)
Capital Projects 8,407,771 8,522,755 (114,984)
Port Authority TIF 4,994,060 4,534,417 459,643
Nonmajor funds 181,389 191,547 (10,158)
Total – governmental funds 27,778,945$ 28,063,237$ (284,292)$
as of December 31,
Governmental Funds Change in Fund Balance
Fund Balance
GENERAL FUND FINANCIAL POSITION
GENERAL FUND REVENUES
GENERAL FUND EXPENDITURES
ENTERPRISE FUNDS
Increase
2016 2015 (Decrease)
Net position of enterprise funds
Total by classification
Net investment in capital assets 98,722,624$ 96,808,557$ 1,914,067$
Unrestricted 21,739,120 20,376,753 1,362,367
Total – enterprise funds 120,461,744$ 117,185,310$ 3,276,434$
Total by fund
Water 41,926,578$ 40,563,069$ 1,363,509$
Sewer 34,875,309 34,402,866 472,443
Storm Water 41,964,655 40,570,695 1,393,960
Arena 1,695,202 1,648,680 46,522
Total – enterprise funds 120,461,744$ 117,185,310$ 3,276,434$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
WATER FUND
SEWER FUND
STORM WATER FUND
ARENA FUND
STATEMENT OF NET POSITION
Increase
2016 2015 (Decrease)
Net position
Governmental activities
Net investment in capital assets 69,942,544$ 64,684,403$ 5,258,141$
Restricted 7,113,065 9,638,141 (2,525,076)
Unrestricted 13,100,682 13,031,913 68,769
Total governmental activities 90,156,291 87,354,457 2,801,834
Business-type activities
Net investment in capital assets 98,722,624 96,808,557 1,914,067
Unrestricted 21,739,120 20,376,753 1,362,367
Total business-type activities 120,461,744 117,185,310 3,276,434
Total net position 210,618,035$ 204,539,767$ 6,078,268$
As of December 31,
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2016
CITY OF ROSEMOUNT, MINNESOTA
CITY OF ROSEMOUNT, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2016
PREPARED BY THE DEPARTMENTS OF
ADMINISTRATION AND FINANCE
LOGAN MARTIN, City Administrator
JEFFREY A. MAY, Finance Director
CITY OF ROSEMOUNT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
As of and for the Year Ended December 31, 2016
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i
GFOA Certificate of Achievement ix
Organizational Chart x
City Officials xi
FINANCIAL SECTION
Independent Auditors' Report xii - xiv
Management’s Discussion and Analysis 1 - 10
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 11
Statement of Activities 12
Fund Financial Statements:
Balance Sheet – Governmental Funds 13
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 14
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 15
Statement of Net Position – Proprietary Funds 16
Statement of Revenues, Expenses, and Changes in Net Position -
Proprietary Funds 17
Statement of Cash Flows – Proprietary Funds 18 - 19
Notes to the Financial Statements 20 - 60
Required Supplementary Information:
Schedule of Revenues and Other Sources Compared to Budget (Budgetary Basis) –
Budget and Actual – General Fund 61
Schedule of Expenditures and Other Uses (Budgetary Basis) – Budget and
Actual – General Fund 62
Schedule of City’s Proportionate Share of the Net Pension Liability –
Public Employees General Employees Retirement Fund 63
Schedule of Employer Contributions – Public Employees General Employees Retirement Fund 63
Schedule of City’s Proportionate Share of the Net Pension Liability –
Public Employees Police and Fire Fund 64
Schedule of Employer Contributions – Public Employees Police and Fire Fund 64
Schedule of Changes in the Rosemount Fire Department Relief Association’s Net Pension
Asset and Related Ratios 65
Schedule of Employer Contributions – Rosemount Fire Department Relief Association 66
Notes to Required Supplementary Information 67
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds 68
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds 69
Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) –
Budget and Actual:
Building CIP Capital Project Sub-Fund 70
Street CIP Capital Project Sub-Fund 71
Equipment CIP Capital Project Sub-Fund 72
CITY OF ROSEMOUNT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
As of and for the Year Ended December 31, 2016
TABLE OF CONTENTS
Page
STATISTICAL SECTION (Unaudited)
Net Position by Component 73
Changes in Net Position 74 – 75
Fund Balances, Governmental Funds 76
Changes in Fund Balances, Governmental Funds 77
Assessed Value (or Tax Capacity) and Estimated Market Value of
All Taxable Property 78
Property Tax Rates – All Direct and Overlapping Governmental Units 79
Principal Property Tax Payers 80
Property Tax Levies and Collections 81
Ratios of Outstanding Debt by Type 82
Ratios of Net General Bonded Debt Outstanding 83
Direct and Overlapping Governmental Activities Debt 84
Legal Debt Margin Information 85
Pledged-Revenue Coverage 86
Demographic and Economic Statistics 87
Principal Employers 88
Full-Time/Permanent Part-Time City Government Employees by
Function/Program 89
Operating Indicators by Function/Program 90
Capital Asset Statistics by Function/Program 91
ix
Mayor
& City Council
City
Administrator
Finance
Director
Parks and
Recreation
Director
Community
Development
Director
Director of Public Works /
City Engineer
Chief
of Police
Accounting
Supervisor
Payroll
Clerk
Accounts
Payable
Clerk
Utility Billing
Clerks (2 )
Secretary Customer Service
Representative
Parks
Supervisor
Rental
Coordinator
Operations
Coordinator
Building
Maintenance
Workers (3)
Inspections
Secretaries (2)
Planning &
Personnel Secretary
Senior
Planner
GIS Technician
Building
Official
Building
Inspector
Project Engineer
Sr. Engineering Technician
PW Coordinator
PW Supervisor Records
Supervisor
Secretaries
(2 FT)
Sergeants (6)
Officers (12)
Community Resource
Officer
Detectives (2)
School Resource
Officer
CSOs (2 PT)
Reserve
Commander
Reserve
Officers
City
Attorney
Citizen
Advisory
Commissions
Assistant
City
Administrator
City
Clerk
Communications
Coordinator
Crew Leads (3)
Fac. Maint. Spec
PW Maintenance
Workers (11)
PW Mechanics (2)
Fire Chief
Safety
Coordinator
Fire Prevention/
Education
Secretary
Assistant
Fire Chief
Training
Coordinator
Captains
Lieutenants
Firefighters
Building Inspector /
Fire Marshal
Planner
Building
Attendants
Seasonal
Workers
PW
Secretary
Recreation
Supervisors (2)
IT Coordinator
City of Rosemount
Organizational Chart
Recreation
Coordinator
Finance
Clerk
Human Resources
Coordinator
x
CITY OF ROSEMOUNT
CITY OFFICIALS
As of and for the Year Ended December 31, 2016
xi
Term of Office Term Expires
ELECTED OFFICIALS:
Mayor Bill Droste Four Years December 31, 2018
Council member Mark DeBettignies Four Years December 31, 2018
Council member Heidi Freske Four Years December 31, 2020
Council member Shaun Nelson Four Years December 31, 2018
Council member Jeff Weisensel Four Years December 31, 2020
APPOINTED OFFICIALS:
City Administrator Logan Martin
Finance Director Jeffrey A. May
Assistant City Administrator Emmy Foster
City Engineer/Public Works Director (Interim) John Morast
Community Development Director Kim Lindquist
Police Chief Mitchell Scott
Fire Chief Richard Schroeder
Parks and Recreation Director Dan Schultz
CONSULTANTS AND ADVISORS:
Legal Kennedy & Graven
Fluegel Law Firm, P.A.
Auditing Baker Tilly Virchow Krause, LLP
Malloy, Montague, Karnowski, Radosevich & Co., PA
Fiscal Springsted, Inc.
Ehlers & Associates, Inc.
Engineering WSB & Associates
Short, Elliot, Hendrickson, Inc.
KLM Engineering
Bolton & Menk, Inc.
ISG
Oertel Architects, Ltd.
Black & Veatch
TKDA
Barr Engineering Co.
Stantec Inc.
Donahue & Associates, Inc.
SRF Consulting Group, Inc.
Houston Engineering, Inc.
Sunde Engineering, PLLC
Advanced Engineering and Environmental Services, Inc.
Emmons & Olivier Resources, Inc.
Evergreen Land Services Company
Braun Intertec Co.
American Engineering Testing, Inc.
C ERTIFIED
A CCOUNTANTS
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
xii
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Rosemount, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Rosemount,
Minnesota (the City) as of and for the year ended December 31, 2016, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
xiii
OPINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of December 31, 2016, and the
respective changes in financial position and, where applicable, cash flows thereof, for the year then
ended, in accordance with accounting principles generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the RSI in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, supplementary information, and
statistical section, as listed in the table of contents, are presented for purposes of additional analysis and
are not required parts of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
(continued)
xiv
Prior Year Comparative Information
We have previously audited the City’s 2015 financial statements, and we expressed unmodified audit
opinions on the respective financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information in our report dated May 11, 2016. In our
opinion, the partial comparative information presented herein as of and for the year ended December 31,
2015 is consistent, in all material respects, with the audited financial statements from which it has been
derived.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2017,
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
Minneapolis, Minnesota
May 11, 2017
Page 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Unaudited)
As management of the City of Rosemount (the City), we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
December 31, 2016. We encourage readers to consider the information presented here in conjunction
with the letter of transmittal and the City’s financial statements following this section.
Financial Highlights
> The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $210,618,035 (net position). Of
this amount, $34,839,802 (unrestricted net position) may be used to meet the government's
ongoing obligations to citizens and creditors.
> The City's total net position increased by $6,078,268. Most of this increase is attributable to an
increase in capital assets funded by grants or developers.
> At year end, unassigned fund balance for the General Fund was $6,918,833, or 56 percent of the
total General Fund expenditures budgeted for the upcoming year. Comparison of this balance to
prior years’ balances is illustrated on the table on page 8.
> The City's total bonded debt decreased by $4,215,000 (approximately 20%) during the current
year, however nearly 40% of that decrease related to a bond that was called in 2016.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements comprise three com ponents: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City's assets, liabilities, and deferred
outflows/inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned/vested but unused vacation and sick leave).
Page 2
Both the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government; public safety; public
works; culture, education and recreation; and conservation and economic development. The business-
type activities of the City include water, sewer, storm water and an arena.
The government-wide financial statements include not only the City itself, but also a legally separate port
authority, which functions as the economic development arm of the City, and therefore has been blended
in with the primary government.
The government-wide financial statements can be found on pages 11-12 of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on the near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund, debt service
fund, capital projects fund, and the Port Authority TIF fund all of which are considered major funds. Data
from the three other governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining statements
elsewhere in this report.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison schedule
has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 13-15 of this report.
Page 3
Proprietary funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same
functions presented as business-type activities in the government-wide financial statements. The City
uses enterprise funds to account for its public utilities and ice arena operations. The internal service fund
is an accounting device to accumulate and allocate costs internally among the City's various functions.
The City uses its internal service fund to account for insurance premiums and deductibles and to
accumulate resources for the risk of uninsured loss. Because this service predominantly benefits
governmental rather than business-type functions, it has been included within governmental activities in
the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for each of the
public utilities, which are considered to be major funds of the City, and information on the ice arena fund,
which is considered a non-major fund. The internal service fund is also presented separately in the
proprietary fund financial statements.
The basic proprietary fund financial statements can be found on pages 16-19 of this report.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found
on pages 20-60 of this report.
Other information
Required supplementary information is included on pages 61 - 67. The combining statements referred to
earlier in connection with nonmajor governmental funds are presented following the basic financial
statements. Combining and individual fund statements and schedules can be found on pages 68-72 of
this report. Lastly, the statistical section is included on pages 73 – 91.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $210,618,035 at the close of the most recent fiscal year.
The largest portion of the City's net position (80 percent) reflects its investment in capital assets (e.g.,
land, buildings, machinery and equipment, infrastructure) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
Page 4
City of Rosemount’s Statement of Net Position
Governmental Business-Type 2016 Governmental Business-Type 2015
Activities Activities Totals Activities Activities Totals
Current and other assets $ 32,372,351 $ 24,100,925 $ 56,473,276 $ 34,768,779 $ 22,863,509 $ 57,632,288
Capital assets 81,934,294 99,908,372 181,842,666 79,135,040 98,302,192 177,437,232
Total assets 114,306,645 124,009,297 238,315,942 113,903,819 121,165,701 235,069,520
Deferred outflows of resources 7,995,925 559,009 8,554,934 1,118,263 115,926 1,234,189
Long-term liabilities outstanding 28,539,526 3,687,332 32,226,858 24,962,238 3,667,616 28,629,854
Other liabilities 1,616,686 266,941 1,883,627 1,480,799 319,420 1,800,219
Total liabilities 30,156,212 3,954,273 34,110,485 26,443,037 3,987,036 30,430,073
Deferred inflows of resources 1,990,067 152,289 2,142,356 1,224,588 109,281 1,333,869
Net position:
Net investment in capital
assets
69,942,544
98,722,624
168,665,168
64,684,403
96,808,557
161,492,960
Restricted 7,113,065 - 7,113,065 9,638,141 - 9,638,141
Unrestricted 13,100,682 21,739,120 34,839,802 13,031,913 20,376,753 33,408,666
Total net position $ 90,156,291 $ 120,461,744 $ 210,618,035 $ 87,354,457 $ 117,185,310 $ 204,539,767
An additional portion of the City’s net position ($7,113,065 or 3%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance representing unrestricted net
position ($34,839,802 or 17%) may be used to meet the government’s ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business-
type activities.
Governmental activities
Governmental activities increased the City’s net position by $2,801,834, accounting for 46% of the total
growth in the government’s net position. This compares to an increase (from governmental activities) of
$4,753,023 in 2015. Revenues increased by approximately $1,200,000 mainly related to capital grants
and contributions in 2016. Total expenses increased from 2015 but in relation to total revenues the net
effect was the increase in net position of $2,801,834.
Business-type activities
Business-type activities increased the City’s net position by $3,276,434, accounting for 54% of the total
growth in the government’s net position. This compares to an increase of $451,777 in 2015. The primary
reason for the larger current year increase was a large increase related to capital grants and contributions
that accounted for almost all of the increase in net position.
Page 5
Elements of these changes are as follows:
City’s Changes in Net Position
Governmental Business-
Type
2016
Governmental Business-
Type
2015
Activities Activities Totals Activities Activities Totals
Revenues:
Program revenues:
Charges for services $ 3,726,535 $ 6,506,790 $ 10,233,325 $ 4,161,564 $ 6,378,842 $ 10,540,406
Operating grants and contributions 635,988 24,248 660,236 478,239 - 478,239
Capital grants and contributions 3,181,711 3,184,415 6,366,126 1,937,954 204,178 2,142,132
General revenues:
Property taxes 11,852,094 - 11,852,094 11,574,093 - 11,574,093
Other taxes 354,571 - 354,571 332,290 - 332,290
Interest earnings 270,676 339,012 609,688 181,754 272,336 454,090
Change in fair value of investments (147,945 ) (134,583 ) (282,528 ) (1,788 ) (24,638 ) (26,426 )
Other 103,394 - 103,394 111,565 - 111,565
Total revenues 19,977,024 9,919,882 29,896,906 18,775,671 6,830,718 25,606,389
Expenses:
General government 4,426,817 - 4,426,817 2,878,070 - 2,878,070
Public safety 5,629,866 - 5,629,866 4,378,347 - 4,378,347
Public works 4,765,115 - 4,765,115 4,468,049 - 4,468,049
Culture, dducation and recreation 1,959,224 - 1,959,224 1,643,886 - 1,643,886
Conservation and economic development 3,968 - 3,968 53,040 - 53,040
Interest and fiscal charges 476,121 - 476,121 569,722 - 569,722
Water - 2,075,460 2,075,460 - 2,219,781 2,219,781
Sewer - 2,742,402 2,742,402 - 2,575,330 2,575,330
Storm water - 1,228,697 1,228,697 - 1,117,526 1,117,526
Arena - 510,968 510,968 - 497,838 497,838
Total expenses 17,261,111 6,557,527 23,818,638 13,991,114 6,410,475 20,401,589
Increase in net position
before transfers
2,715,913
3,362,355
6,078,268
4,784,557
420,243
5,204,800
Transfers 85,921 (85,921 ) (31,534 ) 31,534 -
Increase in net position 2,801,834 3,276,434 6,078,268 4,753,023 451,777 5,204,800
Net position – Beginning of Year 87,354,457 117,185,310 204,539,767 82,601,434 116,733,533 199,334,967
Net position – End of Year $ 90,156,291 $ 120,461,744 $ 210,618,035 $ 87,354,457 $ 117,185,310 $ 204,539,767
Page 6
Expenses and Program Revenues – Governmental Activities
Revenues by Source – Governmental Funds
0
1
2
3
4
5
6
General Government Public Safety Public Works Recreation Community Development Interest on long-term debt
Millions
Expenses
Revenue
Taxes
66.8%
Intergovernmental
3.8%
Public charges for services
15.8%
Licenses and permits
4.4%
Fines and forfeitures
0.6%
Special assessments
5.8% Investment income and
miscellaneous
2.8%
Page 7
Expenses and Program Revenues – Business-Type Activities
Revenues by Source – Proprietary Funds
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s
net resources available for spending at the end of the fiscal year.
0
0.5
1
1.5
2
2.5
3
3.5
4
Water Sewer Storm water Ice Arena
Millions
Expenses
Revenue
Charges for services
76.8%
Water meters
0.8%
Connection fees
14.5%
Investment income
3.1%
Surcharges and penalties
4.9%
Page 8
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $27,778,945, a decrease of $284,292 in comparison with the prior year. $6,918,833
constitutes unassigned fund balance, which is available for spending at the government’s discretion (this
amount is entirely in the General Fund and is typically available to meet cash flow needs). A small amount
($10,113) is classified as nonspendable in regards to prepaid items, $9,301,251 is classified as restricted
to meet debt service requirements or relates to donations for capital projects and the remainder of the
fund balance is considered to be committed or assigned and unavailable for discretionary spending.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the General Fund was $6,918,833, while total fund balance reached $9,888,534. The
following table shows year-end General Fund balances as compared to the adopted expenditure budget
of the following year:
Fund Balance
Year Budget Amount Percent of Next Budget
2006 $ 8,516,300 $ 4,806,577 52%
2007 9,181,100 5,747,445 54%
2008 10,574,900 5,688,243 55%
2009 10,384,800 5,693,475 55%
2010 10,466,000 5,731,123 55%
2011 10,480,400 5,700,071 * 54%
2012 10,531,800 5,905,056 * 55%
2013 10,728,600 6,001,628 * 54%
2014 11,098,600 6,288,615 * 55%
2015 11,423,500 6,506,697 * 55%
2016 11,835,528 6,918,833 * 56%
2017 12,392,700
* This amount represents the unassigned General Fund balance
During the current fiscal year, unassigned fund balance in the General Fund increased by $412,136. The
increase was intentional as the City has determined, through the adoption of a formal Fund Balance
Policy, it would like to maintain an unassigned fund balance of 55 percent of the next General Fund
operating expenditure budget. Forty to fifty percent normally provides adequate working capital to finance
General Fund operations until property taxes and state aids are received. The desired unassigned fund
balance level also provides a certain amount of comfort that unforeseen emergencies can be addressed
without causing an immediate financial crisis.
As of December 31, 2016, 100 percent of the unassigned fund balance of the General Fund has been
designated to meet working capital needs.
The debt service fund balance decreased by $949,650 due to accelerated principal payments on the
outstanding bonds. The capital projects fund balance decreased by $114,984 due to larger capital
expenditures tied to previous year revenue collections. The Port Authority TIF fund balance increased by
$459,643 due mainly to the sale of a land parcel to the owners of the new Culver’s restaurant.
Proprietary funds
The City’s proprietary funds provide the same type of information found in the government-wide
statements, but in more detail.
Unrestricted net position of the utility funds at the end of the year amounted to $21,417,538 while the
arena fund had an unrestricted net position amounting to $321,582. The increase in total net position for
the utility funds was $3,229,912 after $635,389 of capital contributions from governmental activities and
$2,876,985 from private entities (i.e. developers) as well as net transfers out of $847,810. The increase in
total net position for the arena fund was $46,522 which included net transfers in of $126,500.
Page 9
General Fund Budgetary Highlights
There were a few significant variances between final budgeted revenues and actual amounts. Building
permit revenue exceeded budget by approximately $181,000 because of more activity than expected.
General government charges for services exceeded budget by approximately $133,000 due mostly to an
increase in plan checking fees and zoning fees related to volume of activity. State aid-general
intergovernmental revenues exceeded budget by approximately $228,000 mainly due to the Safe Routes
to Schools (SRTS) project that had the State paying the City $213,000 to help fund the project. All other
revenue areas experienced either small surpluses or deficits that led to the final surplus amount. Overall,
total expenditures and other financing uses were 2% over budget with most departments being slightly
less than budget and a few being just slightly over budget. The reason for the final expenditures and other
financing uses being more than budgeted were due to the City share of the SRTS project exceeding the
amount received from the State.
Capital Asset and Debt Administration
Capital assets
The City’s investment in capital assets for its governmental and business-type activities as of December
31, 2016, amounts to $181,842,666 (net of accumulated depreciation). This investment in capital assets
includes land, buildings and structures, machinery and equipment, water, sewer, and storm water
systems, infrastructure and construction in progress.
City of Rosemount’s Capital Assets
(net of depreciation)
Governmental Business-Type
Activities Activities Totals
Land $ 7,960,624 $ 2,683,777 $ 10,644,401
Land improvements 6,247,433 - 6,247,433
Buildings 17,202,617 11,085,341 28,287,958
Machinery and equipment 11,734,309 3,431,509 15,165,818
Infrastructure 62,990,283 139,199,225 202,189,508
Construction in progress 1,552,447 744,907 2,297,354
Accumulated depreciation (25,753,419 ) (57,236,387 ) (82,989,806)
Total capital assets $ 81,934,294 $ 99,908,372 $ 181,842,666
Additional information on the City's capital assets can be found in Note IV.C. on pages 37-38 of this
report.
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $17,250,000 (including
debt recorded in the Port Authority). Of this amount, $4,150,000 was for general obligation improvement
debt which has financed special assessment construction as part the continuing development within the
City. An additional $9,665,000 was general obligation debt issued by the Port Authority which financed
the City's economic development and redevelopment program s. Another $2,090,000 was general
obligation revenue bond debt issued to add to and improve the water and storm water utility systems
within the City. The remaining $1,345,000 was general obligation refunding debt.
Page 10
The City's total debt decreased by $4,215,000 (approximately 20%) during the current year, however
nearly 40% of that decrease related to called bonds.
Cities in Minnesota may issue general obligation debt up to a maximum of three percent of the total
estimated market value of property within the City, per state statutes. The current debt limit for the City is
$68,612,400. Of the City's $17,250,000 in outstanding general obligation debt at the current fiscal year
end, $1,345,000 is subject to the restrictions placed by state statute.
The City received a bond rating upgrade from Aa3 to Aa2 in 2010. These excellent ratings have had a
positive effect on the sale of the City’s bonds.
Additional information on the City's long-term debt can be found in Note IV.E. on pages 41-43 of this
report.
Economic Factors
> Dakota County's unemployment rate ended the year at 3.4 percent, which compares favorably
with the state unemployment rate of 4.0 percent, and the national unemployment rate of 4.5
percent.
> City building permits were up significantly in quantity and in value in 2016, as compared to 2015.
A total of 3,033 permits with a total valuation of $82,205,630 were issued in 2016.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report
or requests for additional information should be addressed to the Finance Director, City of Rosemount,
2875 145th Street West, Rosemount, Minnesota 55068-4997.
See accompanying notes to financial statements.
Page 11
Business-
Governmental Type
Activities Activities 2016 2015
ASSETS
Cash and investments 25,884,876$ 22,464,201$ 48,349,077$ 49,110,616$
Receivables
Taxes 646,564 - 646,564 623,663
Delinquent taxes 70,420 - 70,420 11,519
Accounts 246,571 968,316 1,214,887 1,139,415
Special assessments 998,560 236,347 1,234,907 1,525,471
Due from other governmental units 84,326 248,320 332,646 403,875
Internal balances (44,626) 44,626 - -
Prepaid items 174,728 139,115 313,843 343,891
Cash and investments with fiscal agent 3,309,442 - 3,309,442 3,350,294
Net pension asset 1,001,490 - 1,001,490 1,123,544
Capital assets
Land 7,960,624 2,683,777 10,644,401 11,686,794
Construction in progress 1,552,447 744,907 2,297,354 2,404,945
Land improvements 6,247,433 - 6,247,433 5,792,578
Buildings 17,202,617 11,085,341 28,287,958 27,849,822
Machinery and equipment 11,734,309 3,431,509 15,165,818 14,808,455
Infrastructure 62,990,283 139,199,225 202,189,508 194,157,994
Less: accumulated depreciation (25,753,419) (57,236,387) (82,989,806) (79,263,356)
Total Assets 114,306,645 124,009,297 238,315,942 235,069,520
DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 7,995,925 559,009 8,554,934 1,234,189
LIABILITIES
Accounts payable 690,384 157,687 848,071 941,763
Accrued payroll and payroll taxes 231,577 85,775 317,352 251,471
Other accrued liabilities and deposits 694,725 23,479 718,204 606,985
Noncurrent liabilities
Net pension liability 12,230,676 1,338,476 13,569,152 5,762,903
Due within one year 5,986,408 529,751 6,516,159 4,757,780
Due in more than one year 10,322,442 1,819,105 12,141,547 18,109,171
Total Liabilities 30,156,212 3,954,273 34,110,485 30,430,073
DEFERRED INFLOWS OF RESOURCES
Contributions received for subsequent year 503,714 - 503,714 501,584
Pension related amounts 1,486,353 152,289 1,638,642 832,285
Total Deferred Inflows of Resources 1,990,067 152,289 2,142,356 1,333,869
NET POSITION
Net investment in capital assets 69,942,544 98,722,624 168,665,168 161,492,960
Restricted for debt service 6,111,575 - 6,111,575 6,925,597
Restricted donations for future construction - - - 1,589,000
Restricted for pension 1,001,490 - 1,001,490 1,123,544
Unrestricted 13,100,682 21,739,120 34,839,802 33,408,666
TOTAL NET POSITION 90,156,291$ 120,461,744$ 210,618,035$ 204,539,767$
Totals
CITY OF ROSEMOUNT
STATEMENT OF NET POSITION
As of December 31, 2016
(With Summarized Information as of December 31, 2015)
See accompanying notes to financial statements.
Page 12
Program Revenues
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2016 2015
Primary Government:
Governmental activities:
General government 4,426,817$ 3,128,969$ 20,631$ -$ (1,277,217)$ -$ (1,277,217)$ 304,699$
Public safety 5,629,866 150,571 547,505 3,918 (4,927,872) - (4,927,872) (3,820,522)
Public works 4,765,115 54,893 41,235 3,170,374 (1,498,613) - (1,498,613) (2,676,890)
Culture, education and recreation 1,959,224 392,102 2,617 419 (1,564,086) - (1,564,086) (907,972)
Conservation and economic development 3,968 - 24,000 7,000 27,032 - 27,032 257,050
Interest and fiscal charges 476,121 - - - (476,121) - (476,121) (569,722)
Total Governmental Activities 17,261,111 3,726,535 635,988 3,181,711 (9,716,877) - (9,716,877) (7,413,357)
Business-Type activities
Water 2,075,460 2,692,740 24,248 1,041,806 - 1,683,334 1,683,334 407,964
Sewer 2,742,402 1,996,130 - 1,153,536 - 407,264 407,264 (615,795)
Storm Water 1,228,697 1,387,817 - 989,073 - 1,148,193 1,148,193 469,340
Arena 510,968 430,103 - - - (80,865) (80,865) (88,964)
Total Business-Type Activities 6,557,527 6,506,790 24,248 3,184,415 - 3,157,926 3,157,926 172,545
Total Primary Government 23,818,638$ 10,233,325$ 660,236$ 6,366,126$ (9,716,877) 3,157,926 (6,558,951) (7,240,812)
General revenues:
Taxes
Property taxes, levied for general purposes 10,709,952 - 10,709,952 10,479,883
Property taxes, levied for debt service 1,142,142 - 1,142,142 1,094,210
Other taxes 354,571 - 354,571 332,290
Interest earnings 270,676 339,012 609,688 454,090
Change in fair value of investments (147,945) (134,583) (282,528) (26,426)
Miscellaneous 103,394 - 103,394 104,237
Gain on sale of capital assets - - - 7,328
Transfers 85,921 (85,921) - -
Total general revenues and transfers 12,518,711 118,508 12,637,219 12,445,612
Change in net position 2,801,834 3,276,434 6,078,268 5,204,800
NET POSITION - Beginning $87,354,457 $117,185,310 204,539,767$ 199,334,967$
NET POSITION - ENDING 90,156,291$ 120,461,744$ 210,618,035$ 204,539,767$
Totals
Primary Government
Changes in Net Position
Net (Expense) Revenue and
CITY OF ROSEMOUNT
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
(With Summarized Information For the Year Ended December 31, 2015)
See accompanying notes to financial statements.
Page 13
Port Nonmajor Total
Authority Governmental Governmental
General Debt Service Capital Projects TIF Funds Funds
ASSETS
Cash and investments 10,397,380$ 4,295,447$ 8,862,641$ 1,682,223$ 183,653$ 25,421,344$
Cash and Investments with fiscal agent - - - 3,309,442 - 3,309,442
Receivables from:
Taxes 714,589 - - 2,395 - 716,984
Accounts 68,253 - 178,318 - - 246,571
Special assessments 3,870 320,830 669,800 - - 994,500
Delinquent special assessments 246 3,106 708 - - 4,060
Due from other governmental units 13,296 - 71,030 - - 84,326
Prepaid items - - 10,000 - 113 10,113
TOTAL ASSETS 11,197,634$ 4,619,383$ 9,792,497$ 4,994,060$ 183,766$ 30,787,340$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities
Accounts payable 442,710$ -$ 183,429$ -$ 2,377$ 628,516$
Accrued payroll and payroll taxes 231,577 - - - - 231,577
Deposits payable 502,625 - - - - 502,625
Advances from other funds - - 44,626 - - 44,626
Total Liabilities 1,176,912 - 228,055 - 2,377 1,407,344
Deferred Inflows of Resources
Unavailable revenue 132,188 312,192 652,957 - - 1,097,337
Contributions received for subsequent year - - 503,714 - - 503,714
Total Deferred Inflows of Resources 132,188 312,192 1,156,671 - - 1,601,051
Fund Balances
Nonspendable - - 10,000 - 113 10,113
Restricted - 4,307,191 - 4,994,060 - 9,301,251
Committed - - - - 181,276 181,276
Assigned 2,969,701 - 8,397,771 - - 11,367,472
Unassigned 6,918,833 - - - - 6,918,833
Total Fund Balances 9,888,534 4,307,191 8,407,771 4,994,060 181,389 27,778,945
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 11,197,634$ 4,619,383$ 9,792,497$ 4,994,060$ 183,766$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds.81,934,294
Some receivables that are not currently available are reported as deferred inflows of resources in the fund financial
statements but are recognized as revenue when earned in the government-wide statements.1,097,337
Internal service funds are reported in the statement of net position as governmental activities.566,279
The net pension asset does not relate to current financial resources and is not reported in the governmental funds.1,001,490
The net pension liability does not relate to current financial resources and is not reported in the governmental funds.(12,230,676)
Deferred outflows of resources related to pensions do not relate to current financial resources and is not reported
in the governmental funds.7,995,925
Deferred inflows of resources related to pensions do not relate to current financial resources and is not reported
in the governmental funds.(1,486,353)
Some liabilities, including long-term debt, are not due and payable in the current period and, therefore, are not
reported in the funds. See Note II.A.(16,500,950)
NET POSITION OF GOVERNMENTAL ACTIVITIES 90,156,291$
CITY OF ROSEMOUNT
BALANCE SHEET - GOVERNMENTAL FUNDS
As of December 31, 2016
See accompanying notes to financial statements.
Page 14
Port Nonmajor Total
Authority Governmental Governmental
General Debt Service Capital Projects TIF Funds Funds
REVENUES
Taxes 9,397,523$ 347,874$ 1,364,000$ 794,268$ 58,000$ 11,961,665$
Intergovernmental 596,817 - 77,403 - - 674,220
Public charges for services 1,356,109 - 1,465,542 - 4,580 2,826,231
Licenses and permits 792,557 - - - - 792,557
Fines and forfeitures 108,561 - - - - 108,561
Special assessments - 528,076 506,968 - - 1,035,044
Interest earnings 152,580 9,355 74,460 29,282 - 265,677
Change in fair value of investments (97,708) - (53,625) 3,388 - (147,945)
Donations/contributions - - 1,066 - - 1,066
Miscellaneous 103,515 - 285,623 - 194 389,332
Total Revenues 12,409,954 885,305 3,721,437 826,938 62,774 17,906,408
EXPENDITURES
Current:
General government 2,769,172 - 8,288 155,041 45,017 2,977,518
Public safety 4,072,189 - - - - 4,072,189
Public works 3,002,678 - 2,741 - - 3,005,419
Parks and recreation 1,516,720 - - - - 1,516,720
Capital Outlay 591,931 - 4,467,261 - 27,915 5,087,107
Debt Service:
Principal retirement - 1,970,000 - 195,000 - 2,165,000
Interest and fiscal charges - 166,955 3,268 325,415 - 495,638
Total Expenditures 11,952,690 2,136,955 4,481,558 675,456 72,932 19,319,591
Excess (deficiency) of revenues
over expenditures 457,264 (1,251,650) (760,121) 151,482 (10,158) (1,413,183)
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - 99,420 308,161 - 407,581
Transfers in 3,593 302,000 545,810 - - 851,403
Transfers out (130,000) - (93) - - (130,093)
Total Other Financing Sources (Uses)(126,407) 302,000 645,137 308,161 - 1,128,891
Net Change in Fund Balances 330,857 (949,650) (114,984) 459,643 (10,158) (284,292)
FUND BALANCES - Beginning 9,557,677 5,256,841 8,522,755 4,534,417 191,547 28,063,237
FUND BALANCES - ENDING 9,888,534$ 4,307,191$ 8,407,771$ 4,994,060$ 181,389$ 27,778,945$
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended December 31, 2016
See accompanying notes to financial statements.
Page 15
CITY OF ROSEMOUNT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
Net change in fund balances - total governmental funds (284,292)$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of net position the cost of these assets is capitalized and they are
depreciated over their estimated useful lives with depreciation expense reported
in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements
but is capitalized in the government-wide financial statements 5,087,107
Some items reported as capital outlay but not capitalized (224,686)
Capital contributions from external parties 2,116,281
Depreciation is reported in the government-wide statements (2,231,750)
Utility infrastructure constructed by capital projects funds not reported
as governmental activities (635,389)
In the statement of activities, the loss of ($904,728) on the disposal of
capital assets is reported. In the fund financial statements, proceeds from the sale
of capital assets ($407,581) are reported because the proceeds increase
financial resources (1,312,309)
Internal service funds are reported in the statement of activities.(174,069)
Receivables not currently available are reported as unavailable revenue in the fund financial
statements but are recognized as revenue when earned in the government-wide
financial statements.(334,638)
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position. This is the amount
of principal payments paid.2,165,000
Governmental funds report the effect of premiums and discounts, and similar
items when debt is first issued, whereas these amounts were amortized in the
statement of activities.13,887
Some expenses in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in the governmental funds. This is the change in the following liabilities.
Compensated absences (82,819)
Accrued interest on debt 5,608
Net pension liability (7,298,356)
Net pension asset (122,054)
Deferred outflows of resources related to pensions 6,877,662
Deferred inflows of resources related to pensions (763,349)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 2,801,834$
See accompanying notes to financial statements.
Page 16
Governmental
Activities -
Storm Non-major Internal Service
Water Sewer Water Arena Totals Fund
ASSETS
Current Assets
Cash and investments 9,493,144$ 6,036,639$ 6,464,685$ 469,733$ 22,464,201$ 463,532$
Accounts receivable 355,501 357,161 231,085 24,569 968,316 -
Special assessments receivable 86,582 107,813 41,952 - 236,347 -
Due from other governments - - 217,932 30,388 248,320 -
Prepaid and other assets 10,901 117,823 5,547 4,844 139,115 164,615
Total Current Assets 9,946,128 6,619,436 6,961,201 529,534 24,056,299 628,147
Noncurrent Assets
Advance to other funds - 63,220 - - 63,220 -
Property and equipment:
Land 1,008,628 547,158 1,127,991 - 2,683,777 -
Construction in progress 719,907 - - 25,000 744,907 -
Buildings 6,794,504 401,414 1,489,523 2,399,900 11,085,341 -
Machinery and equipment 1,868,428 707,750 715,139 140,192 3,431,509 -
Mains and lines 23,203,183 20,004,059 30,000,694 - 73,207,936 -
Other improvements 16,528,701 36,927,459 12,535,129 - 65,991,289 -
Less accumulated depreciation (15,713,299) (29,974,642) (10,356,974) (1,191,472) (57,236,387) -
Net Property and Equipment 34,410,052 28,613,198 35,511,502 1,373,620 99,908,372 -
Total Noncurrent Assets 34,410,052 28,676,418 35,511,502 1,373,620 99,971,592 -
Total Assets 44,356,180 35,295,854 42,472,703 1,903,154 124,027,891 628,147
DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 189,729 189,711 89,589 89,980 559,009 -
LIABILITIES
Current Liabilities
Accounts payable 72,149 19,581 45,823 20,134 157,687 61,868
Accrued payroll and payroll taxes 48,534 23,622 5,854 7,765 85,775 -
Accrued interest 20,664 - 2,815 - 23,479 -
Current portion of long term obligations 299,366 29,366 186,479 14,540 529,751 -
Total Current Liabilities 440,713 72,569 240,971 42,439 796,692 61,868
Noncurrent Liabilities
General obligation debt 1,622,292 - 105,000 - 1,727,292 -
Advances from other funds 18,594 - - - 18,594 -
Net pension liability 453,984 453,979 215,235 215,278 1,338,476 -
Accrued compensated absences 31,814 31,811 12,435 15,753 91,813 -
Total Noncurrent Liabilities 2,126,684 485,790 332,670 231,031 3,176,175 -
Total Liabilities 2,567,397 558,359 573,641 273,470 3,972,867 61,868
DEFERRED INFLOWS OF RESOURCES
Pension related amounts 51,934 51,897 23,996 24,462 152,289 -
NET POSITION
Net investment in capital assets 33,504,304 28,613,198 35,231,502 1,373,620 98,722,624 -
Unrestricted 8,422,274 6,262,111 6,733,153 321,582 21,739,120 566,279
TOTAL NET POSITION 41,926,578$ 34,875,309$ 41,964,655$ 1,695,202$ 120,461,744$ 566,279$
CITY OF ROSEMOUNT
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
As of December 31, 2016
Business-Type Activities - Enterprise Funds
See accompanying notes to financial statements.
Page 17
Governmental
Activities -
Storm Non-major Internal Service
Water Sewer Water Arena Totals Funds
OPERATING REVENUES
Charges for services 1,837,199$ 1,710,246$ 1,167,118$ 430,103$ 5,144,666$ -$
Water meters 52,736 - - - 52,736 -
Miscellaneous 126 - 10,638 - 10,764 -
Total Operating Revenues 1,890,061 1,710,246 1,177,756 430,103 5,208,166 -
OPERATING EXPENSES
Personnel services 504,135 503,848 225,673 232,577 1,466,233 -
Supplies 216,168 19,936 25,211 26,892 288,207 14,486
Professional services and charges 126,313 31,750 126,742 28,127 312,932 146,105
Other services and charges 380,710 92,751 148,490 168,728 790,679 263,285
Metro sewer charges - 1,185,397 - - 1,185,397 -
Depreciation 801,528 908,720 695,076 54,644 2,459,968 -
Total Operating Expenses 2,028,854 2,742,402 1,221,192 510,968 6,503,416 423,876
Operating Loss (138,793) (1,032,156) (43,436) (80,865) (1,295,250) (423,876)
NONOPERATING REVENUES (EXPENSES)
Connection fees 493,855 272,794 202,181 - 968,830 -
Taxes - - - - - 245,000
Intergovernmental 24,248 - - - 24,248 -
Interest earnings 123,967 103,870 110,288 887 339,012 4,807
Change in fair value of investments (52,290) (38,442) (43,851) - (134,583) -
Loss from disposal of capital assets (249) (249) (249) - (747) -
Surcharges and penalties 308,824 13,090 7,880 - 329,794 -
Interest expense and fiscal agent fees (45,859) - (7,505) - (53,364) -
Total Nonoperating Revenues 852,496 351,063 268,744 887 1,473,190 249,807
Income (loss) before contributions
and transfers 713,703 (681,093) 225,308 (79,978) 177,940 (174,069)
Capital contributions, including
special assessments 1,041,806 1,153,536 1,624,462 - 3,819,804 -
Transfers in - - 90,000 130,000 220,000 -
Transfers out (392,000) - (545,810) (3,500) (941,310) -
Change in Net Position 1,363,509 472,443 1,393,960 46,522 3,276,434 (174,069)
TOTAL NET POSITION - Beginning 40,563,069 34,402,866 40,570,695 1,648,680 117,185,310 740,348
TOTAL NET POSITION - ENDING 41,926,578$ 34,875,309$ 41,964,655$ 1,695,202$ 120,461,744$ 566,279$
Business-Type Activities - Enterprise Funds
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
See accompanying notes to financial statements.
Page 18
Governmental
Activities -
Storm Non major Internal
Water Sewer Water Arena Totals Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 2,729,668$ 2,000,158$ 1,379,854$ 375,146$ 6,484,826$ -$
Cash paid to suppliers for goods and services (715,397) (1,212,410) (246,482) (147,274) (2,321,563) (414,963)
Cash paid for employees (595,688) (595,402) (269,079) (275,991) (1,736,160) -
Net Cash Flows From (Used by) Operating Activities 1,418,583 192,346 864,293 (48,119) 2,427,103 (414,963)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Property taxes - - - - - 245,000
Repayment of advance to other funds - 29,371 - - 29,371 -
Repayment of advance from other funds (8,639) - - - (8,639) -
Repayment of advance to other governmental units - - 54,483 - 54,483 -
Transfers from other funds - - 90,000 130,000 220,000 -
Transfers to other funds (392,000) - (545,810) (3,500) (941,310) -
Net Cash Flows From (Used by) Noncapital Financing Activities (400,639) 29,371 (401,327) 126,500 (646,095) 245,000
CASH FLOWS FROM INVESTING ACTIVITIES
Marketable securities purchased (6,247,290) (4,588,442) (5,593,851) - (16,429,583) -
Marketable securities sold 5,608,223 3,935,019 4,924,961 100,000 14,568,203 100,000
Interest earnings 123,967 103,870 110,288 887 339,012 4,807
Net Cash Flows From (Used by) Investing Activities (515,100) (549,553) (558,602) 100,887 (1,522,368) 104,807
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Debt retired (245,000) - (180,000) - (425,000) -
Interest paid (46,242) - (9,005) - (55,247) -
Acquisition and construction of capital assets (231,014) - (294,914) (28,592) (554,520) -
Contribution received for construction 108,651 98,562 42,697 - 249,910 -
Net Cash Flows From (Used by) Capital and Related Financing Activities (413,605) 98,562 (441,222) (28,592) (784,857) -
Net Increase (Decrease) in Cash and Cash Equivalents 89,239 (229,274) (536,858) 150,676 (526,217) (65,156)
CASH AND CASH EQUIVALENTS - Beginning of Year 3,166,195 882,373 1,013,394 319,057 5,381,019 336,688
CASH AND CASH EQUIVALENTS - END OF YEAR 3,255,434$ 653,099$ 476,536$ 469,733$ 4,854,802$ 271,532$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
Cash and Investments per Statement of Net Position 9,493,144$ 6,036,639$ 6,464,685$ 469,733$ 22,464,201$ 463,532$
Less: Non Cash Equivalents (6,237,710) (5,383,540) (5,988,149) - (17,609,399) (192,000)
CASH AND CASH EQUIVALENTS PER STATEMENT OF CASH FLOWS 3,255,434$ 653,099$ 476,536$ 469,733$ 4,854,802$ 271,532$
CITY OF ROSEMOUNT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
Business-Type Activities - Enterprise Funds
See accompanying notes to financial statements.
Page 19
Governmental
Activities -
Water Sewer Storm Non major Internal
Utility Utility Water Arena Totals Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
FLOWS FROM (USED BY) OPERATING ACTIVITIES
Operating loss (138,793)$ (1,032,156)$ (43,436)$ (80,865)$ (1,295,250)$ (423,876)
Nonoperating income 802,679 285,884 210,061 - 1,298,624 -
Adjustments to Reconcile Operating Loss to Net Cash Flows
From (Used by) Operating Activities
Noncash items included in income
Depreciation 801,528 908,720 695,076 54,644 2,459,968 -
Change in assets and liabilities
Accounts receivable 36,928 4,028 (7,963) (24,569) 8,424 -
Other receivables - - - (30,388) (30,388) -
Prepaid items (1,060) (9,175) 568 1,347 (8,320) (31,473)
Accounts payable (111,683) 9,015 19,275 14,734 (68,659) -
Other current liabilities 17,537 14,348 (20,430) (1,622) 9,833 -
Accrued liabilities (23,091) (23,094) (9,878) 1,116 (54,947) 40,386
Pension related deferrals and liabilities 34,538 34,776 21,020 17,484 107,818 -
NET CASH FLOWS FROM (USED BY) OPERATING ACTIVITIES 1,418,583$ 192,346$ 864,293$ (48,119)$ 2,427,103$ (414,963)$
NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES
The Water Utility received contributed plant of $922,261 during the year. The Sewer Utility received contributed plant of $1,012,148 during the year.
The Storm Water Utility received contributed plant of $1,577,966 during the year.
Unrealized loss on investments were $52,290 for the Water Utility, $38,442 for the Sewer Utility, and $43,851 for the Storm Water Utility for the year.
Business-Type Activities - Enterprise Funds
CITY OF ROSEMOUNT
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 20
NOTE Page
I. Summary of Significant Accounting Policies 21
A. Reporting Entity 21
B. Government-Wide and Fund Financial Statements 22
C. Measurement Focus, Basis of Accounting,
and Financial Statement Presentation 24
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows
of Resources, and Net Position or Equity 25
1. Deposits and Investments 25
2. Receivables 26
3. Inventories and Prepaid Items 27
4. Capital Assets 28
5. Deferred Outflows of Resources 28
6. Compensated Absences 29
7. Long-Term Obligations/Conduit Debt 29
8. Deferred Inflows of Resources 29
9. Equity Classifications 30
10. Prior Period Information 31
11. Basis for Existing Rates 31
12. Pension 31
II. Reconciliation of Government-Wide and Fund Financial Statements 32
A. Explanation of Certain Differences Between the
Governmental Funds Balance Sheet and the Statement of Net Position 32
III. Stewardship, Compliance, and Accountability 32
A. Budgetary Information 32
B. Excess Expenditures Over Appropriations 32
IV. Detailed Notes on All Activities and Funds 33
A. Deposits and Investments 33
B. Receivables 36
C. Capital Assets 37
D. Interfund Advances and Transfers 39
E. Long-Term Obligations 41
F. Net Position/Fund Balances 44
V. Other Information 46
A. Employees’ Retirement System 46
B. Risk Management 58
C. Commitments and Contingencies 59
D. Effect of New Accounting Standards on Current-Period Financial Statements 60
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 21
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Rosemount, Minnesota (the “City”) was formed and operates pursuant to applicable Minnesota
laws and statutes. The governing body consists of a five-member City Council elected at large by voters of
the City. City Council members serve four-year staggered terms and the mayor serves a four-year term
coinciding with the terms of two of the Council members. Elections take place every two years.
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America, as applicable to governmental units. The accepted standard-setting body for
establishing governmental accounting and financial reporting principles is the Governmental
Accounting Standards Board (GASB).
A. REPORTING ENTITY
This report includes all of the funds of the City. The reporting entity for the City consists of the primary
government and its component unit. Component units are legally separate organizations for which the
primary government is financially accountable or other organizations for which the nature and
significance of their relationship with the primary government are such that their exclusion would cause
the reporting entity’s financial statements to be misleading. The primary government is financially
accountable if (1) it appoints a voting majority of the organization’s governing body and it is able to
impose its will on that organization, (2) it appoints a voting majority of the organization’s governing body
and there is a potential for the organization to provide specific financial benefits to, or impose specific
financial burdens on, the primary government, (3) the organization is fiscally dependent on and there is a
potential for the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. Certain legally separate, tax exempt organizations should also be reported
as a component unit if all of the following criteria are met: (1) the economic resources received or held
by the separate organization are entirely or almost entirely for the direct benefit of the primary
government, its component units, or its constituents; (2) the primary government or its component units,
is entitled to, or has the ability to access, a majority of the economic resources received or held by the
separate organization; and (3) the economic resources received or held by an individual organization
that the primary government, or its component units, is entitled to, or has the ability to otherwise access,
are significant to the primary government.
Component units are reported using one of two methods, discrete presentation or blending. Generally,
component units should be discretely presented in a separate column in the financial statements. A
component unit should be reported as part of the primary government using the blending method if it
meets any one of the following criteria: (1) the primary government and the component unit have
substantially the same governing body and a financial benefit or burden relationship exists, (2) the
primary government and the component unit have substantially the same governing body and
management of the primary government has operational responsibility for the component unit, (3) the
component unit serves or benefits, exclusively or almost exclusively, the primary government rather than
its citizens, or (4) the total debt of the component unit will be paid entirely or almost entirely from
resources of the primary government. The financial statements include the Rosemount Port Authority as
a blended component unit. The Port Authority serves all the citizens of the government and is governed
by a board comprised of three of five of the primary government’s elected council and four citizens
appointed at large. The bond issuance authorizations are approved by the primary government’s council
and the legal liability for the general obligation portion of the Port Authority’s debt remains with the
primary government. The Port Authority is reported in a special revenue fund and debt service fund. The
Rosemount Port Authority does not issue separate financial statements.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 22
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
In February 2015, the GASB issued Statement No. 72 – Fair Value Measurement and Application. This
statement addresses accounting and financial reporting issues related to fair value measurements. It
defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. This standard was
implemented January 1, 2016.
In August 2015, the GASB issued Statement No. 77 – Tax Abatement Disclosures. This statement
addresses accounting and financial reporting issues related to tax abatements. This standard was
implemented January 1, 2016.
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity. The statements distinguish
between governmental and business-type activities. Governmental activities generally are financed
through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type
activities are financed in whole or in part by fees charged to external parties for goods or services.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The City does not allocate indirect expenses to functions in the statement
of activities. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services, or privileges provided by a given function or segment, and 2)
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not included among program revenues are
reported as general revenues. Internally dedicated resources are reported as general revenues rather
than as program revenues.
Fund Financial Statements
Financial statements of the City are organized into funds, each of which is considered to be a separate
accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts,
which constitute its assets, deferred outflows or resources, liabilities, deferred inflows of resources, net
position/fund equity, revenues, and expenditures/expenses.
Funds are organized as major funds or nonmajor funds within the governmental and proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary categories. A
fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues, or
expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the
corresponding total for all funds of that category or type, and
b. The same element of the individual governmental fund or enterprise fund that met the 10% test is
at least 5% of the corresponding total for all governmental and enterprise funds combined.
c. In addition, any other governmental or enterprise fund that the City believes is particularly
important to financial statement users may be reported as a major fund.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 23
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
The City reports the following major governmental funds:
General Fund – accounts for the City’s primary operating activities. It is used to account for and
report all financial resources except those accounted for and reported in another fund.
Debt Service Fund – used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for the payment of general long-term debt principal,
interest, and related costs, other than enterprise debt.
Capital Projects Fund – used to account for and report financial resources that are restricted,
committed, or assigned to expenditures for capital outlays, including the acquisition or
construction of capital facilities and other capital assets. The capital projects fund consists of
one primary fund and three separate internal funds maintained by the City.
Port Authority TIF Fund – used to account for and report financial resources that are restricted,
committed, or assigned to expenditures related to the activities of the City’s Downtown –
Brockway TIF District.
The City reports the following major enterprise funds:
Water – accounts for operations of the water system.
Sewer – accounts for operations of the sewer system.
Storm Water – accounts for operations of the storm water drainage system .
The City reports the following non-major governmental and enterprise funds:
Special Revenue Funds – used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditures for specified purposes (other than debt
service or capital projects).
Fire Safety Education Fund
GIS Fund
Port Authority General Fund
Enterprise Funds – may be used to report any activity for which a fee is charged to external
uses for goods or services, and must be used for activities which meet certain debt or cost
recovery criteria.
Arena Fund – accounts for the activities of the City’s ice arena operations.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 24
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
In addition, the City reports the following fund types:
Internal service funds are used to account for the financing of goods and services provided by
one department or agency to other departments or agencies of the City on a cost-
reimbursement basis.
Insurance Fund – accumulates resources to pay deductibles and uninsured claims, and
pays for a majority of the general liability insurance and workers compensation insurance
premiums for the City.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
Government-Wide Financial Statements
The government-wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting
from exchange and exchange-like transactions are recognized when the exchange takes place. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special
assessments are recorded as revenue when levied. Unbilled receivables are recorded as revenues
when services are provided.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s water and sewer utility and
various other functions of the government. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recorded when they are both
measurable and available. Available means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures are
recorded when the related fund liability is incurred, except for unmatured interest on long-term debt,
claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund
liability when amounts are due and payable.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 25
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (cont.)
Fund Financial Statements (cont.)
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is received
by the City.
Proprietary fund financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as described previously in this note.
The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the water, sewer, storm water, and arena funds are charges to customers for sales and services.
Operating expenses for proprietary funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
All Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estim ates.
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial
maturity of three months or less when acquired to be cash equivalents.
Investment of City funds is restricted by state statutes. Available investments are limited to:
a. Direct obligations or obligations guaranteed by the United States or its agencies, commercial
paper, repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S.
Government Securities to the Federal Reserve Bank of New York or certain Minnesota
brokers/dealers.
b. General obligations of the State of Minnesota or any of its municipalities.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 26
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
c. Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System.
d. 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 has adopted an investment policy. The policy contains the following guidelines:
Credit Risk - The policy follows state statutes for allowable investments except that it does
not permit the purchase of shares of investment companies registered under the Federal
Investment Company Act of 1940 whose only investments are direct obligations guaranteed
by the United States or its agencies.
Concentration of Credit Risk - The policy does not limit the amount the City may invest in
any one issuer.
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from
rising interest rates, the City's investment policy limits the amount of investments with
maturities of more than five years to 35% of the City's total investment portfolio (including
certificates of deposit).
Investments are stated at fair value, which is the amount at which an investment could be exchanged
in a current transaction between willing parties. Fair values are based on quoted market prices. No
investments are reported at amortized cost. Adjustments necessary to record investments at fair value
are recorded in the operating statement as increases or decreases in investment income. The
difference between the bank statement balance and carrying value is due to outstanding checks and/or
deposits in transit.
See Note IV.A. for further information.
2. Receivables
Property tax levies are set by the City Council in the fall each year and are certified to Dakota County for
collection in the following year. In Minnesota, counties act as collection agents for all property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are
recorded as receivables by the City at that date. Property taxes are accrued and recognized as revenue in
the year collectible, net of delinquencies.
Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15.
Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to
the City three times per year, in January, July, and December.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 27
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY (cont.)
2. Receivables (cont.)
Taxes which remain unpaid 60 days after year end are classified as delinquent taxes receivable and are
fully offset by unavailable revenue (deferred inflow of resources) because they are not known to be
available to finance current expenditures.
Special assessments are levied against the benefited properties for the assessable costs of special
assessments improvement projects in accordance with state statutes. The City usually adopts the
assessment rolls when the individual projects are complete. The assessments are collectible over a term
of years generally consistent with the term of years of the related bond issue. Collection of annual
installments (including interest) is handled by the County in the same manner as property taxes. Property
owners are allowed to prepay total future installments without interest or prepayment penalties.
Special assessments receivable includes the following components:
> Current - amount collected by Dakota County and not remitted to the City.
> Delinquent - amounts billed to property owners but not paid.
> Unavailable - assessment installments, which will be billed to property owners in future years.
> Other - assessments for which payment has been postponed based on council action.
Accounts receivable are considered to be 100% collectible.
During the course of operations, transactions occur between individual funds that may result in amounts
owed between funds. Short-term interfund loans are reported as “due to and from other funds.” Long-term
interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund
receivables and payables between funds within governmental activities are eliminated in the statement of
net position. Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as internal balances.
In the governmental fund financial statements, advances to other funds are offset equally by a
nonspendable fund balance account which indicates that they do not constitute expendable available
financial resources and, therefore, are not available for appropriation or by a restricted fund balance
account, if the funds will ultimately be restricted when the advance is repaid.
3. Inventories and Prepaid Items
Governmental fund inventory items are charged to expenditure accounts when purchased. Year-end
inventory was not significant. Proprietary fund inventories are generally used for construction and for
operation and maintenance work. They are not for resale. They are valued at cost based on weighted
average, and charged to construction and/or operation and maintenance expense when used.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements and expensed as the items are
used (consumption method).
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 28
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY (cont.)
4. Capital Assets
Government – Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial cost of more than
$5,000 for general capital assets and infrastructure assets, and an estimated useful life in excess of one
year. All capital assets are valued at historical cost or estimated historical cost if actual amounts are
unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of
donation.
Additions to and replacements of capital assets of business-type activities are recorded at original cost,
which includes material, labor, overhead, and an allowance for the cost of funds used during construction
when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense
incurred during construction netted against any interest revenue from temporary investment of borrowed
fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments
relating to retirement units is added to plant accounts. The cost of property replaced retired or otherwise
disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is
charged to accumulated depreciation.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of
activities, with accumulated depreciation reflected in the statement of net position. Depreciation is
provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range
of estimated useful lives by type of asset is as follows:
Buildings 30-65 Years
Machinery and equipment 4-20 Years
Other improvements 60 Years
Utility system 65 Years
Infrastructure 35-50 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary
fund operations are accounted for the same way as in the government-wide statements.
5. Deferred Outflows of Resources
A deferred outflow of resources represents a consumption of net position/fund balance that applies to a
future period and will not be recognized as an outflow of resources (expense/expenditure) until that future
time.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 29
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY (cont.)
6. Compensated Absences
Under terms of employment, employees are granted vacation, sick and comp time benefits in varying
amounts. These benefits are based upon union contracts and City actions as applicable. Amounts carried
forward for vacation and comp time accruals are governed by these contracts and actions. Sick pay
accruals may be carried forward indefinitely.
All vested vacation, sick leave and comp time pay is accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if
they have matured, for example, as a result of employee resignations and retirements, and are payable
with expendable available resources.
Payments for vacation, sick and comp time leave will be made at rates in effect when the benefits are
used. Accumulated vacation, sick and comp time leave liabilities at December 31, 2016 are determined on
the basis of current salary rates and include salary related payments.
7. Long-Term Obligations/Conduit Debt
All long-term obligations to be repaid from governmental and business-type resources are reported as
liabilities in the government-wide statements. The long-term obligations consist primarily of notes and
bonds payable, accrued compensated absences, and net pension liability.
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus or minus any premiums or discounts) are reported as another
financing source and payments of principal and interest are reported as expenditures. The accounting in
proprietary funds is the same as it is in the government-wide statements.
The City has approved the issuance of industrial revenue bonds (IRB) for the benefit of private business
enterprises. IRB's are secured by mortgages or revenue agreements on the associated projects, and do
not constitute indebtedness of the City. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. At year end, the aggregate principal amount for the four issues
outstanding could not be determined; however, their original issue amounts totaled $13,094,720.
8. Deferred Inflows of Resources
A deferred inflow of resources represents an acquisition of net position that applies to a future period and
therefore will not be recognized as inflow of resources (revenue) until that future time.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 30
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY (cont.)
9. Equity Classifications
Government–Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets - Consists of capital assets including restricted capital assets,
net of accumulated depreciation and reduced by the outstanding balances (excluding unspent
debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to
the acquisition, construction, or improvement of those assets.
b. Restricted net position - Consists of net position with constraints placed on their use either by
1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments or, 2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position - All other net positions that do not meet the definitions of “restricted”
or “net investment in capital assets.”
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
Fund Statements
Governmental fund balances are displayed as follows:
a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are
not in spendable form or because legal or contractual requirements require them to be
maintained intact.
b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2)
law through constitutional provisions or enabling legislation.
c. Committed - Includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority. Fund balance amounts are committed through a formal action (resolution) of the
City Council. This formal action must occur prior to the end of the reporting period, but the amount
of the commitment, which will be subject to the constraints, may be determined in the subsequent
period. Any changes to the constraints imposed require the same formal action of the City Council
that originally created the commitment.
d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific
purposes that do not meet the criteria to be classified as restricted or committed. The City Council
has authorized the Finance Director and/or Administrator to assign amounts for a specific
purpose. Assignments may take place after the end of the reporting period.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 31
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY (cont.)
9. Equity Classifications (cont.)
Fund Statements (cont.)
e. Unassigned - Includes residual positive fund balance within the general fund which has not been
classified within the other above mentioned categories. Unassigned fund balance may also
include negative balances for any governmental fund if expenditures exceed amounts restricted or
committed for those purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance
is available unless there are legal documents / contracts that prohibit doing this, such as in grant
agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then
assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made.
The City has a formal minimum fund balance policy. That policy is to maintain a working capital fund of 45
to 55 percent of the subsequent year’s general fund budgeted expenditures. The balance at year end was
$6,918,833, or 56 percent, and is included in unassigned general fund balance.
Proprietary fund equity is classified the same as in the government-wide statements.
10. Prior Period Information
The basic financial statements include certain prior-year summarized comparative information in total but
not at the level of detail required for a presentation in conformity with generally accepted accounting
principles. Accordingly, such information should be read in conjunction with the government’s financial
statements for the year ended December 31, 2015, from which the summarized information was derived.
11. Basis for Existing Rates
Current utility rates were approved by th e City Council on December 15, 2015.
12. Pension
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the
same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 32
NOTE II – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS BALANCE SHEET AND
THE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-wide
statement of net position. One element of that reconciliation explains that “Some liabilities, including long-
term debt, are not due and payable in the current period and, therefore, are not reported in the funds ”. The
details of this $16,500,950 difference are as follows:
Long-term liabilities applicable to the City’s governmental activities are not due and payable in the current
period, and accordingly, are not reported as fund liabilities. Interest on long-term debt is not accrued in
governmental funds, but rather is recognized as an expenditure when due. All liabilities - both current and
long-term - are reported in the statement of net position.
Bonds and notes payable $ 15,160,000
Compensated absences 982,100
Unamortized premium on bonds payable 166,750
Accrued interest 192,100
Combined Adjustment for Long-Term Liabilities $ 16,500,950
NOTE III – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Annual budgets have been adopted for the general fund and the capital project fund that is created by the
following sub-funds, Building CIP, Street CIP and Equipment CIP. The remaining capital project sub funds
adopt project-length budgets and therefore are not included in the annual budgeting process. Formal
budgetary integration is not employed for debt service funds because effective budgetary control is
alternatively achieved through general obligation bond indenture provisions.
The budgeted amounts presented include any amendments made. The appropriated budget is prepared
by fund, department and function. The legal level of budgetary control is at the department level. The City
Council may authorize department heads to transfer budgeted appropriations within departments. The
Council approved several supplemental budgetary appropriations during the year, but they were not
considered material.
Appropriations lapse at year end unless specifically carried over. Carryovers to the following year were
$9,889,940.
B. EXCESS EXPENDITURES OVER APPROPRIATIONS
Budgeted expenditures and other financing uses in the General Fund were $11,802,224. Total
expenditures and other financing uses were $12,052,549. This results in excess expenditures of
$250,325. Budgeted expenditures in the Equipment CIP fund were $1,442,000. Total expenditures were
$1,493,889. This results in excess expenditures of $51,889.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 33
NOTE IV – DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s
portion of this pool is displayed on the statement of net position and balance sheet as cash and
investments. In addition, investments are separately held by several of the City’s funds.
The City’s cash and investments at year end were comprised of the following:
Carrying
Value
Statement
Balances
Associated
Risks
Petty cash and cash on hand $ 2,400 $ 2,400 N/A
Demand deposits 21,398,028 22,109,575 Custodial credit risk
Negotiable CDs
10,223,120
10,223,120
Custodial credit risk,
credit, concentration of
credit, interest rate risk
US Agencies
20,034,971
20,034,971
Custodial credit, credit,
concentration of credit,
interest rate risk
Total Cash and Investments $ 51,658,519 $ 52,370,066
Reconciliation to the financial statements
Per statement of net position
Cash and investments $ 48,349,077
Cash and investments with fiscal agent 3,309,442
Total Cash and Investments $ 51,658,519
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and
savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing
and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the
government is located, insured amounts are further limited to a total of $250,000 for the combined amount
of all deposit accounts.
The Securities Investor Protection Corporation (SIPC), created by the Securities Investor Protection Act of
1970, is an independent government-sponsored corporation (not an agency of the U.S. government).
SIPC membership provides account protection up to a maximum of $500,000 per customer, of which
$100,000 may be in cash.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 34
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
The market approach valuation method and matrix pricing techniques are used for recurring fair value
measurements of the US Agency bonds and negotiable certificates of deposit.
December 31, 2016
Investment Type Level 1 Level 2 Level 3 Total
US Agencies $ - $ 20,034,971 $ - $ 20,034,971
Negotiable CDs - 10,223,120 - 10,223,120
Totals $ - $ 30,258,091 $ - $ 30,258,091
Custodial Credit Risk
Deposits
Custodial credit risk is the risk that in the event of a financial institution failure, the City’s deposits may not
be returned to the City.
The City maintains collateral agreements with its banks. At December 31, 2016, the banks had pledged
various government securities in the amount of $26,570,634 to secure the City’s deposits. The City has no
deposits exposed to custodial credit risk at December 31, 2016.
Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City does not have any investments exposed to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
As of December 31, 2016, the City of Rosemount’s investments in U.S. agency obligations received AA+
and/or AAA ratings from Standard & Poor’s and/or Moody’s Investors Service, respectively.
The City also had investments in negotiable certificates of deposit which were unrated.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 35
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in
a single issuer.
As of December 31, 2016, the City of Rosemount’s investment portfolio was concentrated as follows:
Issuer Investment Type Percentage of Total
Federal Home Loan Bank US Agencies 18%
Federal Home Loan Mortgage Corporation US Agencies 11%
Federal Farm Credit Bank US Agencies 8%
Federal National Mortgage Association US Agencies 21%
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment.
As of December 31, 2016, the City of Rosemount’s investments were as follows:
Investment Maturities (in years)
Investment Type
Total Fair
Value
Less
than 1 1 - 5 6 - 10
More
than 10
US Agencies $ 20,034,971 $ 3,303,817 $ 5,866,204 $ 10,864,950 $ -
Negotiable CDs 10,223,120 1,041,000 6,841,120 2,101,000 240,000
Totals $ 30,258,091 $ 4,344,817 $ 12,707,324 $ 12,965,950 $ 240,000
At December 31, 2016, the City held $9,189,658 in US Agency Obligations that are callable at increasing
stepped interest rates.
See Note I.D.1 for further information on deposit and investment policies.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 36
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
B. RECEIVABLES
Receivable amounts not expected to be collected within one year are listed below:
Governmental Activities General
Debt
Service
Capital
Projects Totals
Amounts not expected to be collected
within one year $ 2,167 $ 179,665 $ 375,088 $ 556,920
Business-Type Activities
Water
Utility
Sewer
Utility
Storm Water
Utility Totals
Amounts not expected to be collected
within one year $ 48,486 $ 60,375 $ 132,459 $ 241,320
Governmental funds report unavailable or unearned revenue in connection with receivables for revenues
that are not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with resources that have been received, but not yet earned. At
the end of the current fiscal year, the various components of unavailable revenue and unearned revenue
reported in the governmental funds were as follows:
Unavailable Unearned Totals
Delinquent property taxes receivable $ 70,420 $ - $ 70,420
Delinquent special assessments 3,938 - 3,938
Special assessments not yet due 965,326 503,714 1,469,040
Donations receivable for future projects 57,653 - 57,652
Total Unearned/Unavailable Revenue
for Governmental Funds $ 1,097,337 $ 503,714 $ 1,601,051
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 37
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 was as follows:
Beginning Ending
Balance Additions Deletions Balance
Governmental Activities
Capital assets not being depreciated
Land $ 9,018,127 $ 135,990 $ 1,193,493 $ 7,960,624
Land improvements 2,187,890 168,507 - 2,356,397
Construction in progress 1,370,309 4,500,651 4,318,513 1,552,447
Total Capital Assets
Not Being Depreciated 12,576,326 4,805,148 5,512,006 11,869,468
Capital assets being depreciated
Improvements 3,604,688 286,348 - 3,891,036
Buildings 16,764,481 438,136 - 17,202,617
Machinery and equipment 11,322,955 1,188,694 777,340 11,734,309
Infrastructure 209,037 - - 209,037
Roads 56,472,613 3,943,500 249,907 60,166,206
Bridges 2,034,591 - - 2,034,591
Parking lots 580,449 - - 580,449
Total Capital Assets Being Depreciated 90,988,814 5,856,678 1,027,247 95,818,245
Less: Accumulated depreciation for
Improvements (1,289,774 ) (163,080 ) - (1,452,854 )
Buildings (4,967,190 ) (336,540 ) - (5,303,730 )
Machinery and equipment (6,799,707 ) (684,227 ) 718,323 (6,765,611 )
Infrastructure (9,256 ) (5,336 ) - (14,592 )
Roads (10,644,570 ) (976,851 ) 190,108 (11,431,313 )
Bridges (479,835 ) (50,865 ) - (530,700 )
Parking lots (239,768 ) (14,851 ) - (254,619 )
Total Accumulated Depreciation (24,430,100 ) (2,231,750 ) 908,431 (25,753,419 )
Net Capital Assets
Being Depreciated 66,558,714 3,624,928 118,816 70,064,826
Total Governmental Activities
Capital Assets, Net of
Accumulated Depreciation $ 79,135,040
$ 8,430,076
$ 5,630,822
$ 81,934,294
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $ 289,922
Public safety 290,033
Public works, which includes the depreciation of roads, bridges and parking lots 1,344,563
Culture, education and recreation 307,232
Total Governmental Activities Depreciation Expense $ 2,231,750
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 38
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS (cont.)
Beginning Ending
Balance Additions Deletions Balance
Business-Type Activities
Capital assets not being depreciated
Land $ 2,668,667 $ 15,110 $ - $ 2,683,777
Construction in progress 1,034,636 204,315 494,044 744,907
Total Capital Assets
Not Being Depreciated 3,703,303 219,425 494,044 3,428,684
Capital assets being depreciated
Buildings 11,085,341 - - 11,085,341
Machinery and equipment 3,485,500 3,593 57,584 3,431,509
Mains and lines 134,861,304 4,337,921 - 139,199,225
Total Capital Assets
Being Depreciated 149,432,145 4,341,514 57,584 153,716,075
Less: Accumulated depreciation for
Buildings (3,406,694 ) (237,615 ) - (3,644,309 )
Machinery and equipment (2,029,372 ) (141,269 ) 56,837 (2,113,804 )
Mains and lines (49,397,190 ) (2,081,084 ) - (51,478,274 )
Total Accumulated Depreciation (54,833,256 ) (2,459,968 ) 56,837 (57,236,387 )
Net Capital Assets
Being Depreciated
94,598,889
1,881,546
747
96,479,688
Total Business-Type
Capital Assets, Net of
Accumulated Depreciation $ 98,302,192 $ 2,100,971 $ 494,791 $ 99,908,372
Depreciation expense was charged to functions as follows:
Business-Type Activities
Water $ 801,528
Sewer 908,720
Storm water 695,076
Arena 54,644
Total Business-type Activities Depreciation Expense
$ 2,459,968
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 39
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND ADVANCES AND TRANSFERS
Advances
The following is a schedule of interfund advances as of December 31, 2016:
Receivable Fund Payable Fund Amount
Amount Not
Due Within
One Year
Sewer Capital Projects $ 44,626 $ 22,846
Sewer Water 18,594 9,535
Subtotal – Fund financial statements 63,220
Less: Fund eliminations (18,594 )
Total – Interfund Advances Government-Wide Statement
of Net Position
$ 44,626
The principal purpose of these interfund loans was to finance the public works building expansion in
1999, and to purchase and renovate a building in the Downtown-Brockway Tax Increment Financing
District in 2005.
For the statement of net position, interfund balances which are owed within the governmental activities or
business-type activities are netted and eliminated.
The sewer fund advanced funds to the water fund and capital projects fund. The sewer fund is charging
the other funds interest on the advance based on the average outstanding advance balance during the
year at a rate of 5%. Following is a detailed repayment schedule for the sewer fund advance:
Principal Interest Totals
2017 $ 30,839 $ 3,161 $ 34,000
2018 32,381 1,619 34,000
Total $ 63,220 $ 4,780 $ 68,000
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 40
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND ADVANCES AND TRANSFERS (cont.)
Transfers
The following is a schedule of interfund transfers:
Fund Transferred To Fund Transferred From Amount Principal Purpose
General Arena $ 3,500 Building and grounds
maintenance
Capital Projects 93 Reimbursement of capital
project costs
Debt Service Water 302,000 Water share of debt payment
Capital Projects Storm Water 545,810 Share of capital project costs
Enterprise
Storm Water Water 90,000 Water share of debt payment
Arena General 130,000 Operating expenses
1,071,403
Less: Fund eliminations (350,093 )
Less: Contributed plant reclassified to a transfer
in the government-wide statements (635,389 )
Total Transfers – Government-Wide
Statement of Activities
$ 85,921
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the
budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the
receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations.
For the statement of activities, interfund transfers within the governmental activities or business-type
activities are netted and eliminated.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 41
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended December 31, 2016 was as follows:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable
General obligation debt $ 18,950,000 $ - $ 3,790,000 $ 15,160,000 $ 5,515,000
Add: Premiums 180,637 - 13,887 166,750 -
Sub-totals 19,130,637 - 3,803,887 15,326,750 5,515,000
Other Liabilities
Vested compensated absences 899,281 514,474 431,655 982,100 471,408
Net pension liability 4,932,320 8,525,120 1,226,764 12,230,676 -
Total Other Liabilities 5,831,601 9,039,594 1,658,419 13,212,776 471,408
Total Governmental Activities
Long-Term Liabilities $ 24,962,238 $ 9,039,594 $ 5,462,306 $ 28,539,526 $ 5,986,408
BUSINESS-TYPE ACTIVITIES
Bonds and Notes Payable
General obligation debt $ 2,515,000 $ - $ 425,000 $ 2,090,000 $ 445,000
Add: Premiums 90,522 - 8,230 82,292 -
Sub-totals 2,605,522 - 433,230 2,172,292 445,000
Other Liabilities:
Vested compensated absences 231,511 56,178 111,125 176,564 84,751
Net pension liability 830,583 625,210 117,317 1,338,476 -
Total Other Liabilities 1,062,094 681,388 228,442 1,515,040 84,751
Total Business-type Activities
Long-Term Liabilities $ 3,667,616 $ 681,388 $ 661,672 $ 3,687,332 $ 529,751
General Obligation Debt
All general obligation notes and bonds payable are backed by the full faith and credit of the City. Notes
and bonds in the governmental funds will be retired by future property tax levies or tax increments
accumulated by the debt service fund. Business-type activities debt is payable by revenues from user fees
of those funds or, if the revenues are not sufficient, by future tax levies.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 42
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM OBLIGATIONS (cont.)
General Obligation Debt (cont.)
Governmental Activities Date of Final Interest Original Balance
General Obligation Debt Issue Maturity Rates Indebtedness 12-31-16
Improvement Bonds, Series 2006B 2006 2017 4.0% $ 4,405,000 $ 460,000
Port Authority TIF, Series 2008A 2008 2024 5.0% to 5.5% 2,765,000 2,200,000
Port Authority TIF, Series 2008B 2008 2032 4.0% to 4.1% 3,275,000 3,275,000
Port Authority TIF, Crossover Refunding
Bonds, Series 2010B
2010
2022
1.2% to 3.7%
1,355,000
855,000
Improvement Bonds, Series 2011A 2011 2017 0.45% to 1.35% 2,080,000 425,000
Improvement Bonds, Series 2012A 2012 2018 0.4% to 1.0% 810,000 330,000
Improvement Bonds, Series 2013A 2013 2019 0.5% to 1.65% 1,500,000 915,000
Improvement Bonds, Series 2014A 2014 2025 0.35% to 2.4% 2,400,000 2,020,000
Fire Station Refunding Bonds, Series 2015B 2015 2025 1.5% to 3.0% 1,345,000 1,345,000
Port Authority TIF Crossover Refunding
Bonds, Series 2015A 2015 2032 3.0% 3,335,000 3,335,000
Total Governmental Activities – General Obligation Debt $ 15,160,000
Business-type Activities Date of Final Interest Original Balance
General Obligation Debt Issue Maturity Rates Indebtedness 12-31-16
Water Revenue Bonds, Series 2007A 2007 2018 4.0% $ 1,210,000 $ 285,000
Utility Rev Refunding Bonds, Series 2010A 2010 2018 0.8% to 2.6% 1,545,000 280,000
Water Revenue Bonds, Series 2015A 2015 2026 1.5% to 3.0% 1,525,000 1,525,000
Total Business-type Activities - General Obligation Debt $ 2,090,000
Debt service requirements to maturity are as follows:
Governmental Activities Business-Type Activities
General Obligation Debt General Obligation Debt
Year Principal Interest Principal Interest
2017 $ 5,515,000 $ 373,694 $ 445,000 $ 50,560
2018 1,395,000 268,573 390,000 39,108
2019 1,260,000 239,638 145,000 31,993
2020 980,000 210,780 145,000 28,730
2021 675,000 183,666 150,000 25,043
2022 – 2026 2,870,000 549,084 815,000 59,896
2027 – 2031
2032
2,025,000
440,000
210,788
6,600
-
-
-
-
Totals $ 15,160,000 $ 2,042,823 $ 2,090,000 $ 235,330
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 43
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM OBLIGATIONS (cont.)
Other Debt Information
Estimated payments of compensated absences and the net pension liability are not included in the debt
service requirement schedules. The compensated absences liability and net pension liability attributable to
governmental activities will be liquidated primarily by the general fund.
There are a number of limitations and restrictions contained in the various bond indentures and loan
agreements. The City believes it is in compliance with all significant limitations and restrictions, including
federal arbitrage regulations.
The water and storm water utilities have pledged future water and storm water revenues, net of specified
operating expenses, to repay revenue bonds issued in 2007, 2010, and 2015. Proceeds from bonds
provided financing for utility improvements. The bonds are payable solely from water and storm water
revenues and are payable through 2026. Annual principal and interest payments on the bonds are
expected to require 9% of net revenues. The total principal and interest remaining to be paid on the bonds
is $2,325,330. Principal and interest paid for the current year and the gross customer revenues were
$477,360 and $4,242,919, respectively.
Crossover Refunding
On November 19, 2015, the City issued $3,335,000 in general obligation bonds with an average coupon
rate of 2.73% to advance refund $3,275,000 of outstanding bonds with an average coupon rate of 4.025%.
The net proceeds were used to purchase U.S. government securities. Those securities were deposited in
an account to provide for future debt service payments on the new bonds until the crossover date. The
bonds are not considered to be defeased and the liability for those bonds as well as the escrow account
are recorded in the financial statements. This type of advance refunding is commonly called a crossover
refunding.
The cash flow requirements on the refunded debt prior to the advance refunding was $5,014,739 from
2016 through 2032. The cash flow requirements on the refunding bonds are $4,571,096 from 2016
through 2032. The advance refunding resulted in an economic gain (difference between the present
values of the debt service payments on the old and new debt) of $373,276.
On February 1, 2017, the Port Authority TIF, Series 2008B bonds were called and the balance of
$3,275,000 was paid off. The cash and investments held with a fiscal agent from the proceeds of the Port
Authority TIF Crossover Refunding Bonds, Series 2015A, were liquidated to pay off the bonds.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 44
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
F. NET POSITION/FUND BALANCES
Net position reported on the government-wide statement of net position at December 31, 2016 includes
the following:
Governmental Activities
Net Investment in Capital Assets
Land $ 7,960,624
Construction in progress 1,552,447
Other capital assets, net of accumulated depreciation 72,421,223
Less: related long-term debt outstanding (excluding unspent
capital related debt proceeds)
(11,991,750
)
Total Net Investment in Capital Assets 69,942,544
Restricted for debt service 6,111,575
Restricted for pension 1,001,490
Total Restricted 7,113,065
Unrestricted 13,100,682
Total Governmental Activities Net Position $ 90,156,291
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 45
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
F. NET POSITION/FUND BALANCES (cont.)
Governmental Activities (cont.)
Governmental fund balances reported on the fund financial statements at December 31, 2016 include
the following:
General Fund
Debt
Service
Capital
Projects
Port
Authority
TIF
Nonmajor
Funds Totals
Fund Balances
Nonspendable:
Prepaid items $ - $ - $ 10,000 $ - $ 113 $ 10,113
- Restricted for:
Debt service - 4,307,191 - - - 4,307,191
Port Authority TIF - - - 4,994,060 - 4,994,060
Committed for:
Fire safety education - - - - 2,405 2,405
GIS - - - - 30,799 30,799
Port authority – general - - - - 148,072 148,072
Assigned for: Compensated absences 982,100 - - - - 982,100
Armory debt payments 177,207 - - - - 177,207
Health insurance 150,700 - - - - 150,700
Building maintenance 114,474 - - - - 114,474
Park maintenance 422,544 - - - - 422,544
Election equipment 36,263 - - - - 36,263
Various projects/equipment 1,086,413 5,880,330 6,966,743
Building CIP - - 1,364,588 - - 1,364,588
Street CIP - - 424,882 - - 424,882
Equipment CIP - - 727,971 - - 727,971
Unassigned: 6,918,833 - - - - 6,918,833
Total Fund Balances $ 9,888,534 $ 4,307,191
$ 8,407,771 $ 4,994,060 $ 181,389 $ 27,778,945
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 46
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
F. NET POSITION/FUND BALANCES (cont.)
Business-Type Activities
Net Investment in Capital Assets
Land $ 2,683,777
Construction in progress 744,907
Other capital assets, net of accumulated depreciation 96,479,688
Less: related long-term debt outstanding (excluding unspent
capital related debt proceeds)
(1,185,748
)
Total Net Investment in Capital Assets 98,722,624
Unrestricted 21,739,120
Total Business-Type Activities Net Position $ 120,461,744
NOTE V – OTHER INFORMATION
A. EMPLOYEES’ RETIREMENT SYSTEM
Public Employees Retirement Association (PERA)
Plan description. The City participates in the following cost-sharing multiple-employer defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA’s defined benefit pension plans are established and administered in accordance with Minnesota
Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under
Section 401 (a) of the Internal Revenue Code.
1. General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to either the Coordinated Plan or the Basic Plan. Coordinated
Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was
closed to new members in 1967. All new members must participate in the Coordinated Plan.
2. Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to
merge with and transfer assets and administration to PERA.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 47
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Benefits. PERA provides retirement, disability, and death benefits. Benefit provisions are established by
state statute and can only be modified by the state Legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. Members in plans that are at least 90 percent funded for two consecutive years are given
2.5 percent increases. Members in plans that have not exceeded 90 percent funded, or have fallen below
80 percent, are given one percent increases.
The benefit provisions stated in the following 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.
1. General Employees Plan Benefits
General Employees Plan benefits are based on a member’s highest average salary for any five
successive years of allowable service, age, and years of credit at termination of service. Two methods are
used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member
receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2).
Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for
each of the first ten years of service and 2.7 percent for each remaining year. The annuity accrual rate for
a Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7 percent
for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for
Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For
members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and
normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age
for unreduced Social Security benefits capped at 66.
2. Police and Fire Plan Benefits
Benefits for Police and Fire Plan members first hired after June 30, 2010 but before July 1, 2014 vest on a
prorated basis from 50 percent after five years up to 100 percent after ten years of credited service.
Benefits for Police and Fire Plan members first hired after June 30, 2014 vest on a prorated basis from 50
percent after ten years up to 100 percent after twenty years of credited service. The annuity accrual rate
is 3 percent of average salary for each year of service. For Police and Fire Plan members who were first
hired prior to July 1, 1989 a full annuity is available when age plus years of service equal at least 90.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 48
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Contributions. Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. Contribution rates can only be modified by the state Legislature.
1. General Employees Plan Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1 percent and 6.5
percent, respectively, of their annual covered salary in calendar year 2016. The City was required to
contribute 11.78 percent of pay for Basic Plan members and 7.50 percent for Coordinated Plan members
in calendar year 2016. The City’s contributions to the General Employees Plan for the year ended
December 31, 2016, were $308,184. The City’s contributions were equal to the required contributions as
set by state statute.
2. Police and Fire Plan Contributions
Plan members were required to contribute 10.8 percent of their annual covered salary in calendar year
2016. The City was required to contribute 16.2 percent of pay for members in calendar year 2016. The
City’s contributions to the Police and Fire Plan for the year ended December 31, 2016, were $326,037.
The City’s contributions were equal to the required contributions as set by state statute.
Pension Costs
1. General Employees Fund Pension Costs
At December 31, 2016, the City reported a liability of $5,302,014 for its proportionate share of the General
Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the
State of Minnesota’s contribution of $6 million to the fund in 2016. The State of Minnesota is considered a
non-employer contributing entity and the state’s contribution meets the definition of a special funding
situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City
totaled $69,191. The net pension liability was measured as of June 30, 2016 and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date. The
City’s proportion of the net pension liability was based on the City’s contributions received by PERA during
the measurement period for employer payroll paid dates from July 1, 2015 through June 30, 2016 relative
to the total employer contributions received from all of PERA’s participating employers. At June 30, 2016
the City’s proportion share was 0.0653 percent which was an increase of 0.0008 percent from its
proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $677,072 for its
proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an
additional $20,631 as pension expense and grant revenue for its proportionate share of the State of
Minnesota’s contribution of $6 million to the General Employees Fund.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 49
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Pension Costs (cont.)
1. General Employees Fund Pension Costs (cont.)
At December 31, 2016, the City reported its proportionate share of the General Employees Plan’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual economic experience $ - $ 429,318
Changes of actuarial assumptions 1,038,468 -
Difference between projected and actual investment earnings 1,003,405 -
Changes in proportion 31,095 181,176
Contributions paid to PERA subsequent to measurement date 152,331 -
Totals $ 2,225,299 $ 610,494
$152,331 reported as deferred outflows related to pension resulting from City contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pension will be recognized in pension expense as follows:
Year Ended
December 31:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
2017 $ 627,042 $ 252,259
2018 627,042 252,258
2019 627,042 105,977
2020 191,842 -
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 50
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Pension Costs (cont.)
2. Police and Fire Fund Pension Costs
At December 31, 2016, the City reported a liability of $8,267,138 for its proportionate share of the Police
and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2016, and the
total pension liability used to calculate the net pension liability was determined by an actuarial valuation as
of that date. The City’s proportion of the net pension liability was based on the City’s contributions received
by PERA during the measurement period for employer payroll paid dates from July 1, 2015, through June
30, 2016, relative to the total employer contributions received from all of PERA’s participating employers.
At June 30, 2016, the City’s proportion was 0.206 percent which was a decrease of 0.007 percent from its
proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $1,392,787 for its
proportionate share of the Police and Fire Plan’s pension expense. The City also recognized $18,540 for
the year ended December 31, 2016, as pension expense and grant revenue for its proportionate share of
the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. Legislation passed in 2013
required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year,
starting in fiscal year 2014.
At December 31, 2016, the City reported its proportionate share of the Police and Fire Plan’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual economic experience $ - $ 958,716
Difference between projected and actual investment earnings 1,293,101 -
Changes in actuarial assumptions 4,549,768 -
Changes in proportion 57,602 66,280
Contributions paid to PERA subsequent to measurement date 173,261 -
Totals $ 6,073,732 $ 1,024,996
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 51
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Pension Costs (cont.)
2. Police and Fire Fund Pension Costs (cont.)
$173,261 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ended
December 31:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
2017 $ 1,199,842 $ 220,698
2018 1,199,842 220,698
2019 1,199,842 220,698
2020 1,199,840 220,697
2021 1,101,105 142,205
Actuarial Assumptions
The total pension liability in the June 30, 2016, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on RP 2014 tables for General Employees Plan and RP-2000
tables for the Police and Fire Plan for males or females, as appropriate, with slight adjustments. Cost of
living benefit increases for retirees are assumed to be one percent per year for all future years for the
General Employees Plan and Police and Fire Plan.
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the General Employees Plan was
completed in 2015. The experience study for Police and Fire Plan was for the period July 1, 2004 through
June 30, 2009.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 52
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Actuarial Assumptions (cont.)
The following changes in actuarial assumptions occurred in 2016:
General Employees Fund
> The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
> The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
> Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Police and Fire Fund
> The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% thereafter to 1.0% per year for all future years.
> The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
> The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Long-Term Expected
Real Rate of Return Target Allocation
Domestic Stocks 5.50% 45%
International Stocks 6.00 15
Bonds 1.45 18
Alternative Assets 6.40 20
Cash 0.50 2
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 53
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Public Employees Retirement Association (PERA) (cont.)
Discount rate. The discount rate used to measure the total pension liability in 2016 was 7.5%, a reduction
from the 7.9% used in 2015. The projection of cash flows used to determine the discount rate assumed
that contributions from plan members and employers will be made at rates set in Minnesota Statutes.
Based on these assumptions, the fiduciary net position of the General Employees Fund was projected to
be available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2056. Beginning in fiscal years ended
June 30, 2057, when projected benefit payments exceed the funds’ projected fiduciary net position, benefit
payments were discounted at the municipal bond rate of 2.85% based on an index of 20-year general
obligation bonds with an average AA credit rating at the measurement date. An equivalent single discount
rate of 5.60% was determined that produced approximately the same present value of projected benefits
when applied to all years of projected benefits as the present value of projected benefits using 7.50%
applied to all years of projected benefits through the point of asset depletion and 2.85% after.
Pension Liability Sensitivity. The following presents the City’s proportionate share of the net pension
liability for all plans it participates in, calculated using the discount rate disclosed in the preceding
paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were
calculated using a discount rate one percentage point lower or one percentage point higher than the
current discount rate:
1% Decrease to
Discount Rate
Current Discount
Rate
1% Increase to
Discount Rate
City’s proportionate share of the
General Employees Fund net pension
liability $7,530,463 $5,302,014 $3,466,419
City’s proportionate share of the
Police and Fire Fund net pension
liability $11,572,897 $8,267,138 $5,566,083
Pension Plan Fiduciary Net Position. Detailed information about each pension plan’s fiduciary net
position is available in a separately-issued PERA financial report that includes financial statements and
required supplementary information. That report may be obtained on the Internet at www.mnpera.org.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 54
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Rosemount Fire Department Relief Association-Defined Benefit Pension Plan
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.
Benefits. Individuals with at least 20 years of service who have reached age 50 are entitled to a lump-sum
payment of $7,000 per year of service plus a Supplemental Benefit of 10% of the regular lump sum
distributions, but not more than $1,000. In the event an otherwise qualified member has less than 20 years
of service, the member is eligible for a pension payment of 60 percent after 10 years of service, increasing
4 percent for each year of service after 10 years to a maximum of 100 percent. Members retiring before
50 do not receive distributions until age 50, but interest at 5% per year is added to their retirement benefit
until paid.
Employees covered by benefit terms. At December 31, 2015, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits -
Inactive employees entitled to but not yet receiving benefits 7
Active members 40
47
Contributions. The contribution requirements are established and may be amended by the Minnesota
State Legislature. The Rosemount Fire Department Relief Association is comprised of volunteers.
Therefore, there are no covered payroll amounts or member contributions required.
Pension Costs. At December 31, 2016, the City reported a net pension asset of $1,001,490 for the plan.
The net pension asset was measured as of December 31, 2015. The total pension liability used to
calculate the net pension asset in accordance with GASB 68 was determined by applying an actuarial
formula to specific census data certified by the Department as of December 31, 2015.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 55
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Rosemount Fire Department Relief Association-Defined Benefit Pension Plan (cont.)
The following table presents the changes in net pension asset during the year.
Total
Pension
Liability
(a)
Plan
Fiduciary Net
Position
(b)
Net Pension
Liability
(Asset)
(a-b)
Beginning balance, January 1, 2016 $ 2,225,232 $ 3,348,776 $ (1,123,544 )
Changes for the year
Service cost 116,471 - 116,471
Interest on pension liability 137,850 - 137,850
Changes of assumptions 32,190 - 32,190
Changes of benefit terms 22,230 - 22,230
Contributions (state and local) - 244,269 (244,269)
Net investment income - (44,297) 44,297
Benefit payments, including member
contribution refunds
(88,394)
(88,394)
-
Administrative costs - (13,285) 13,285
Total net changes 220,347 98,293 122,054
Ending balance, December 31, 2016 $ 2,445,579 $ 3,447,069 $ (1,001,490 )
For the year ended December 31, 2016, the City recognized pension expense of $139,369.
At December 31, 2016, the City reported deferred inflows of resources and deferred outflows of
resources, its contributions subsequent to the measurement date, related to pension from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in actuarial assumptions $ 28,865 $ -
Net differences between projected and actual
earnings on pension plan investments
197,038
3,152
Employer contributions subsequent to the
measurement date
30,000
-
Totals $ 255,903 $ 3,152
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 56
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Rosemount Fire Department Relief Association-Defined Benefit Pension Plan (cont.)
Deferred outflows of resources totaling $30,000 related to pensions resulting from the City's contributions
to the plan subsequent to the measurement date will be recognized as a reduction of the net pension
liability (asset) in the year ended December 31, 2017. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pension will be recognized in pension expense as
follows:
Year Ended
December 31:
Future Recognition
2017 $ 51,534
2018 51,534
2019 51,535
2020 52,583
2021 3,325
Thereafter 12,240
Actuarial assumptions. The total pension liability at December 31, 2016 was determined using the entry
age normal actuarial cost method and the following actuarial assumptions:
Fifty (50) percent of active members will retire when reaching retirement eligibility (later of age 50 and 20
years of service); then fifty (50) percent retire each subsequent year until one hundred (100) percent
retirement at the earlier of age 65 or 30 years of service.
Actuarial Valuation Date: December 31, 2015
Measurement Date of Net Pension Asset: December 31, 2015
Actuarial Cost Method: Entry Age
Index rate for 20-year, tax exempt municipal bonds 3.57%
Long-Term Expected Rate of Return: 5.75%
Discount Rate: 5.75%
Inflation: 2.75%
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 57
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Rosemount Fire Department Relief Association-Defined Benefit Pension Plan (cont.)
Mortality rates were based on the July 1, 2015 Minnesota Public Employees’ Retirement Association
Police and Fire Plan actuarial valuation as described below:
Healthy Pre-Retirement – RP 2000 non-annuitant generational mortality, white collar adjustment,
male rates set back two years, female rates set back two years.
Healthy Post-Retirement – RP 2000 non-annuitant generational mortality, white collar adjustment,
without age adjustment.
The actuarial assumptions used in the December 31, 2015 valuation were based on the results of an
actuarial experience study for the period January 1, 2015–December 31, 2015.
The discount rate was updated from 6.00% to 5.75%.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimates for expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) were developed for each major asset class. The asset class
estimates were combined to produce the portfolio long-term expected rate of return by weighting the
expected future real rates of return by the current asset allocation percentage and by adding expected
inflation (2.75%). All results are then rounded to the nearest quarter percentage point.
The best estimates of geometric real and nominal rates of return for each major asset class are
summarized in the following table:
Asset Class
Allocation at
Measurement Date
Long-Term
Expected Real
Rate of Return
Long-term
Expected Nominal
Rate of Return
Domestic equity 58.22% 5.25% 8.00%
International equity 1.86 5.25 8.00
Fixed income 15.64 1.75 4.50
Real estate and alternatives 0.27 3.75 6.50
Cash and cash equivalents 24.01 0.25 3.00
Total 100.00 % 6.25%
Reduced for assumed investment
expense
(0.40%)
Net assumed investment return
(weighted avg, rounded to ¼%)
5.75%
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 58
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Rosemount Fire Department Relief Association-Defined Benefit Pension Plan (cont.)
Discount rate. The discount rate used to measure the total pension liability was 5.75 percent. The
discount rate was developed using the alternative method. Considering the plan’s current overfunded
status, combined with statutory funding requirements, it is assumed the projected plan assets will be
adequate to pay future retiree benefits. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Net pension asset sensitivity. The following presents the City’s net pension asset for the plan,
calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net
pension asset would be if it were calculated using a discount rate 1 percent lower or 1 percent higher than
the current discount rate:
1 Percent
Decrease
Current
1 Percent
Increase
Net pension asset $ 930,278 $ 1,001,490 $ 1,070,640
Pension plan fiduciary net position. The Rosemount Fire Department Relief Association issues a
publicly available financial report that includes financial statements and required supplementary
information for the Rosemount Fire Department Relief Association Pension Plan. That report may be
obtained by writing to City of Rosemount, 2875 145th Street West, Rosemount, Minnesota 55068-4997, or
by calling 651 423 4411.
B. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. The City purchases
commercial insurance and participates in a public entity risk pool called the Minnesota League of Cities
Insurance Trust to provide coverage for these various risks of loss. Settled claims have not exceeded
coverage in any of the past three years. There were no significant reductions in coverage compared to the
prior year.
The City has established an internal service fund (Insurance Fund) to account for and finance uninsured
risks of loss related to torts, theft of, damage to and destruction of assets, including deductibles. The
majority of the City’s general liability and workers compensation insurance premiums are paid for by this
fund. At December 31, 2016, 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.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 59
NOTE V – OTHER INFORMATION (cont.)
C. COMMITMENTS AND CONTINGENCIES
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting
Standards Board pronouncements are met. The liability and expenditure for claims and judgments are
only reported in governmental funds if it has matured. Claims and judgments are recorded in the
government-wide statements and proprietary funds as expenses when the related liabilities are incurred.
From time to time, the City is party to various pending claims and legal proceedings. Although the
outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the City
attorney that the likelihood is remote that any such claims or proceedings will have a material adverse
effect on the City's financial position or results of operations.
The City has received federal and state grants for specific purposes that are subject to review and audit by
the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for
expenditures disallowed under terms of the grants. Management believes such disallowances, if any,
would be immaterial.
The City has active construction projects as of December 31, 2016. Work that has been completed on
these projects but not yet paid for (including contract retainages) is reflected as accounts payable and
expenditures. $389,426 remains on commitments on signed contracts that were not year complete as of
year-end.
In 2007, the City through the Port Authority TIF (Authority) entered into an agreement with 146th Street
Partners, Limited Partnership (Developer) in the form of a tax incremental revenue note to stimulate
economic development. The amount of the obligation is $1,500,000, and is payable to the developer solely
from available tax increments collected from a specific portion of the development. Payments are
scheduled through the year 2032, and carry an interest rate of 4.96%. The agreement is authorized
through the Contract for Private Redevelopment between the Authority and Developer. The Developer
pays property taxes as they become due, and since meeting the criteria established in the development
agreement, is entitled to incentive payments that directly correlate to the taxes paid. The incentive is
based on the repayment schedule in the tax incremental revenue note but only to the extent of available
tax increment, defined as 90% of the tax increment that is received by the Authority in the six-month
period immediate before each payment date. The obligation does not constitute a charge upon any funds
of the City. In the event that future tax increments are not sufficient to pay off the obligation, the obligation
terminates with no further liability to the City. Since the amount of future payments is contingent on the
collection of future TIF increments, the obligation is not reported as a liability in the accompanying financial
statements. Incentive payments for the year ended December 31, 2016 were $142,603.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
Page 60
NOTE V – OTHER INFORMATION (cont.)
D. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved the following:
> Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are
Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB
Statements 67 and 68
> Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans
> Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions
> Statement No. 80, Blending Requirements for Certain Component Units - an Amendment of
GASB Statement No. 14
> Statement No. 81, Irrevocable Split-Interest Agreements
> Statement No. 82, Pension Issues - an Amendment of GASB Statements No. 67, 68, and No. 73
When they become effective, application of these standards may restate portions of these financial
statements.
R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N
See auditors' report and accompanying notes to required supplementary information.
Page 61
Variance with
REVENUES Original Final Actual Final Budget
TAXES
General property tax 7,902,959$ 7,902,959$ 7,911,282$ 8,323$
Fiscal disparities 1,121,469 1,121,469 1,121,469 -
Other 360,000 360,000 364,772 4,772
Total Taxes 9,384,428 9,384,428 9,397,523 13,095
INTERGOVERNMENTAL REVENUES
State aid - police 159,500 159,500 193,588 34,088
State aid - general government 35,000 35,000 263,210 228,210
State aid - highway 32,800 32,800 41,235 8,435
Other 92,100 92,100 98,784 6,684
Total Intergovernmental Revenues 319,400 319,400 596,817 277,417
PUBLIC CHARGES FOR SERVICES
General government 876,400 901,400 1,034,648 133,248
Public safety 38,400 38,400 42,011 3,611
Highways and streets 41,500 41,500 49,823 8,323
Parks and recreation 211,800 211,800 224,558 12,758
SAC 2,500 2,500 5,069 2,569
Total Charges for Services 1,170,600 1,195,600 1,356,109 160,509
LICENSES AND PERMITS
Business 65,000 65,000 64,600 (400)
Non-business 546,800 546,800 727,957 181,157
Total Licenses and Permits 611,800 611,800 792,557 180,757
FINES AND FORFEITURES
County 120,000 120,000 108,561 (11,439)
SPECIAL ASSESSMENTS 2,000 2,000 - (2,000)
INVESTMENT INCOME AND MISCELLANEOUS
Interest earnings 90,300 90,300 152,580 62,280
Change in fair value of investments - - (97,708) (97,708)
Miscellaneous general revenues 11,500 11,500 34,570 23,070
Donations - 44,196 44,196 -
Rents 19,500 19,500 24,749 5,249
Total Investment Income and Miscellaneous 121,300 165,496 158,387 (7,109)
Total Revenues 11,729,528 11,798,724 12,409,954 611,230
OTHER FINANCING SOURCES
Transfers in 3,500 3,500 3,593 93
TOTAL REVENUES AND OTHER
FINANCING SOURCES 11,733,028$ 11,802,224$ 12,413,547$ 611,323$
Budgeted Amounts
For the Year Ended December 31, 2016
CITY OF ROSEMOUNT
GENERAL FUND
BUDGET AND ACTUAL
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES AND OTHER SOURCES COMPARED TO BUDGET (BUDGETARY BASIS) -
See auditors' report and accompanying notes to required supplementary information.
Page 62
Variance with
CURRENT EXPENDITURES Original Final Actual Final Budget
GENERAL GOVERNMENT
Mayor and council 142,128$ 167,128$ 169,163$ (2,035)$
Executive 597,100 597,100 609,210 (12,110)
Elections 48,200 48,200 51,771 (3,571)
Finance 507,800 507,800 491,665 16,135
Community development 1,005,600 1,005,600 967,948 37,652
General government 326,800 326,800 346,294 (19,494)
TOTAL GENERAL GOVERNMENT 2,627,628 2,652,628 2,636,051 16,577
PUBLIC SAFETY
Police department 3,689,000 3,692,739 3,680,753 11,986
Fire department 367,200 381,314 391,436 (10,122)
TOTAL PUBLIC SAFETY 4,056,200 4,074,053 4,072,189 1,864
PUBLIC WORKS
Government building maintenance 543,600 543,600 505,116 38,484
Fleet maintenance 682,000 682,000 545,339 136,661
Street maintenance 1,345,200 1,345,200 1,170,153 175,047
Park maintenance 921,200 921,200 885,050 36,150
TOTAL PUBLIC WORKS 3,492,000 3,492,000 3,105,658 386,342
PARKS AND RECREATION 1,427,200 1,453,543 1,516,720 (63,177)
CAPITAL OUTLAY - - 591,931 (591,931)
OTHER FINANCING USES
Transfers out 130,000 130,000 130,000 -
TOTAL EXPENDITURES AND
OTHER FINANCING USES 11,733,028$ 11,802,224$ 12,052,549 (250,325)$
Beginning of year budget basis encumbrances 2,027,596
End of year budget basis encumbrances (1,997,455)
GAAP basis expenditures and other financing uses 12,082,690$
Budgeted Amounts
For the Year Ended December 31, 2016
CITY OF ROSEMOUNT
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER USES (BUDGETARY BASIS) - BUDGET AND ACTUAL
REQUIRED SUPPLEMENTARY INFORMATION
See auditors' report and accompanying notes to required supplementary information.
Page 63
City's City's City's Proportionate Plan Fiduciary
Proportion Proportionate Share of the Net Position
City Fiscal PERA Fiscal of the Net Share of the City's Net Pension Liability as a Percentage
Year End Year End Date Pension Net Pension **Covered as a Percentage of of the total
Date (Measurement Date)Liability Liability (a)Payroll (b)Covered Payroll (a/b)Pension Liability
12/31/15 6/30/15 0.0645%3,342,725$ 3,896,543$ 85.79%78.20%
12/31/16 6/30/16 0.0653%5,302,014 4,004,601 132.40%68.90%
* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015.
**For purposes of this schedule, covered payroll is defined as "pensionable wages."
Contributions in
Relation to the Contributions
City Fiscal PERA Fiscal Statutorily Statutorily Contribution as a Percentage
Year End Year End Date Required Required Deficiency Covered of Covered
Date (Measurement Date)Contributions (a)Contributions (b)(Excess) (a-b)Payroll ** (d)Payroll (b/d)
12/31/15 6/30/15 292,241$ 292,241$ -$ 3,896,543$ 7.50%
12/31/16 6/30/16 308,184 308,184 - 4,109,750 7.50%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
**For purposes of this schedule, covered payroll is defined as "pensionable wages."
CITY OF ROSEMOUNT
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
For the Year Ended December 31, 2016
For the Year Ended December 31, 2016
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS -
REQUIRED SUPPLEMENTARY INFORMATION (Last Ten Years*)
REQUIRED SUPPLEMENTARY INFORMATION (Last Ten Years*)
See auditors' report and accompanying notes to required supplementary information.Page 64
City's City's City's Proportionate Plan Fiduciary
Proportion Proportionate Share of the Net Position
City Fiscal PERA Fiscal of the Net Share of the City's Net Pension Liability as a Percentage
Year End Year End Date Pension Net Pension **Covered as a Percentage of of the total
Date (Measurement Date)Liability Liability (a)Payroll (b)Covered Payroll (a/b)Pension Liability
12/31/15 6/30/15 0.2130%2,420,178$ 1,984,803$ 121.94%86.60%
12/31/16 6/30/16 0.2060%8,267,138 1,895,019 436.26%63.90%
* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015.
**For purposes of this schedule, covered payroll is defined as "pensionable wages."
Contributions in
Relation to the Contributions
City Fiscal PERA Fiscal Statutorily Statutorily Contribution as a Percentage
Year End Year End Date Required Required Deficiency Covered of Covered
Date (Measurement Date)Contributions (a)Contributions (b)(Excess) (a-b)Payroll ** (d)Payroll (b/d)
12/31/15 6/30/15 321,538$ 321,538$ -$ 1,984,803$ 16.20%
12/31/16 6/30/16 326,037 326,037 - 2,012,572 16.20%
* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015.
**For purposes of this schedule, covered payroll is defined as "pensionable wages."
For the Year Ended December 31, 2016
PUBLIC EMPLOYEES POLICE AND FIRE FUND
REQUIRED SUPPLEMENTARY INFORMATION (Last Ten Years*)
REQUIRED SUPPLEMENTARY INFORMATION (Last Ten Years*)
CITY OF ROSEMOUNT
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For the Year Ended December 31, 2016
SCHEDULE OF EMPLOYER CONTRIBUTIONS -
See auditors' report and accompanying notes to required supplementary information.
Page 65
City's year end 2015 City's year end 2016
Measurement date 2014 Measurement date 2015
Total Pension Liability
Service cost 113,354$ 116,471$
Interest 125,956 137,850
Changes of assumptions - 32,190
Changes of benefit terms - 22,230
Benefit payments, including member
contribution refunds - (88,394)
Net change in total pension liability 239,310 220,347
Total pension liability - beginning 1,985,922 2,225,232
Total pension liability - ending 2,225,232$ 2,445,579$
Plan Fiduciary Net Position
Contributions (State and local)296,595$ 244,269$
Net investment income 186,351 (44,297)
Benefit payments, including member
contribution refunds - (88,394)
Administrative costs (8,300) (13,285)
Net change in plan fiduciary net position 474,646 98,293
Plan fiduciary net position - beginning 2,874,130 3,348,776
Plan fiduciary net position - ending 3,348,776$ 3,447,069$
Net pension liability/(asset) - ending (1,123,544)$ (1,001,490)$
Plan fiduciary net position as a
percentage of the total pension liability 150.49%140.95%
* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015.
CITY OF ROSEMOUNT
SCHEDULE OF CHANGES IN THE ROSEMOUNT FIRE DEPARTMENT
RELIEF ASSOCIATION'S NET PENSION ASSET AND RELATED RATIOS
REQUIRED SUPPLEMENTARY INFORMATION (Last Ten Years*)
For the Year Ended December 31, 2016
See auditors' report and accompanying notes to required supplementary information.
Page 66
Non-Employer
Statutorily Contribution
Year End Determined Actual Contribution State 2%
Date Contribution Contribution Excess Fire Aid
12/31/15 -$ 109,100$ 109,100$ 135,169$
12/31/16 - 30,000 30,000 140,901
* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015.
City Contributions
ROSEMOUNT FIRE DEPARTMENT RELIEF ASSOCIATION
REQUIRED SUPPLEMENTARY INFORMATION (Last Ten Years*)
For the Year Ended December 31, 2016
CITY OF ROSEMOUNT
SCHEDULE OF EMPLOYER CONTRIBUTIONS -
CITY OF ROSEMOUNT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
As of and for the Year Ended December 31, 2016
See auditors’ report.
Page 67
Budgetary Information
Budgetary information is derived from the annual operating budget and is presented using generally
accepted accounting principles and the modified accrual basis of accounting with departures from
generally accepted accounting principles for encumbrances.
See Note II.B. for information on funds with excess expenditures over appropriations.
Public Employees Retirement Association (PERA)
The amounts determined for each fiscal year were determined as of the calendar year-end and occurred
within the fiscal year.
The City is required to present the last ten years of data; however accounting standards allow the
presentation of as many years as are available until ten fiscal years are presented.
Changes in benefit terms: There were no changes of benefit terms for any participating employer in the
Public Employees Retirement Association.
Changes in assumptions:
General Employees Plan
> The assumed post-retirement benefit increase rate was changed from 1.0% per year
through 2035 and 2.5% per year thereafter to 1.0% per year for all future years.
> The assumed investment return was changed from 7.9% to 7.5%. The single discount
rate was changed from 7.9% to 7.5%.
> Other assumptions were changed pursuant to the experience study dated June 30, 2015.
The assumed future salary increases, payroll growth, and inflation were decreased by
0.25% to 3.25% for payroll growth and 2.50% for inflation.
Police and Fire Plan
> The assumed post-retirement benefit increase rate was changed from 1.0% per year
through 2037 and 2.5% per year thereafter to 1.0% per year for all future years.
> The assumed investment return was changed from 7.9% to 7.5%. The single discount
rate changed from 7.9% to 5.6%.
> The assumed future salary increases, payroll growth, and inflation were decreased by
0.25% to 3.25% for payroll growth and 2.50% for inflation.
S U P P L E M E N T A R Y I N F O R M A T I O N
Page 68
Total
Fire Nonmajor
Safety Port Authority Governmental
Education GIS General Funds
ASSETS
Cash and investments 2,405$ 30,799$ 150,449$ 183,653$
Prepaid items - - 113 113
TOTAL ASSETS 2,405$ 30,799$ 150,562$ 183,766$
LIABILITIES
Accounts payable -$ -$ 2,377$ 2,377$
FUND BALANCES
Nonspendable - - 113 113
Committed 2,405 30,799 148,072 181,276
Total Fund Balances 2,405 30,799 148,185 181,389
TOTAL LIABILITIES AND FUND BALANCES 2,405$ 30,799$ 150,562$ 183,766$
CITY OF ROSEMOUNT
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
As of December 31, 2016
Special Revenue Funds
Page 69
Total
Fire Nonmajor
Safety Port Authority Governmental
Education GIS General Funds
REVENUES
Taxes -$ -$ 58,000$ 58,000$
Public charges for services - 2,580 2,000 4,580
Investment income and miscellaneous 5 58 131 194
Total Revenues 5 2,638 60,131 62,774
EXPENDITURES
Current
General government - - 45,017 45,017
Capital Outlay - - 27,915 27,915
Total Expenditures - - 72,932 72,932
Net change in fund balance 5 2,638 (12,801) (10,158)
FUND BALANCES - Beginning of Year 2,400 28,161 160,986 191,547
FUND BALANCES - END OF YEAR 2,405$ 30,799$ 148,185$ 181,389$
For the Year Ended December 31, 2016
Special Revenue Funds
CITY OF ROSEMOUNT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
Page 70
Variance with
Original Final Actual Final Budget
REVENUES
Taxes 24,000$ 24,000$ 24,000$ -$
Intergovernmental - - 71,030 71,030
Charges for services 800,000 800,000 1,174,185 374,185
Investment income 10,500 10,500 11,080 580
Total Revenues 834,500 834,500 1,280,295 445,795
EXPENDITURES
Current
General government 5,800 5,800 5,768 32
Capital Outlay 1,685,700 2,385,700 1,457,370 928,330
Total Expenditures 1,691,500 2,391,500 1,463,138 928,362
Net Change in Fund Balance (857,000) (1,557,000) (182,843) 1,374,157
FUND BALANCE - Beginning 853,989 853,989 853,989 -
FUND BALANCE - ENDING (3,011)$ (703,011)$ 671,146$ 1,374,157$
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
CITY OF ROSEMOUNT
For the Year Ended December 31, 2016
IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL
BUILDING CIP CAPITAL PROJECT SUB-FUND
Page 71
Original and
Final Budgeted Variance with
Amounts Actual Final Budget
REVENUES
Taxes 780,000$ 780,000$ -$
Intergovernmental - 1,373 1,373
Charges for services 125,000 125,000 -
Special assessments - 504,698 504,698
Investment income 2,500 539 (1,961)
Total Revenues 907,500 1,411,610 504,110
EXPENDITURES
Current
General government 2,500 3,286 (786)
Public works - 2,741 (2,741)
Capital Outlay 1,841,000 239,025 1,601,975
Total Expenditures 1,843,500 245,052 1,598,448
Excess (deficiency) of revenues over expenditures (936,000) 1,166,558 2,102,558
OTHER FINANCING USES
Transfers out - (1,011,080) (1,011,080)
Net Change in Fund Balance (936,000) 155,478 1,091,478
FUND BALANCE - Beginning 3,626,889 3,626,889 -
FUND BALANCE - ENDING 2,690,889$ 3,782,367$ 1,091,478$
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
CITY OF ROSEMOUNT
For the Year Ended December 31, 2016
IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL
STREET CIP CAPITAL PROJECT SUB-FUND
Page 72
Original and
Final Budgeted Variance with
Amounts Actual Final Budget
REVENUES
Taxes 560,000$ 560,000$ -$
Intergovernmental - 5,000 5,000
Investment income 7,500 1,030 (6,470)
Miscellaneous - 1,066 1,066
Total Revenues 567,500 567,096 (404)
EXPENDITURES
Current
General government 2,500 2,500 -
Capital Outlay 1,439,500 1,491,389 (51,889)
Total Expenditures 1,442,000 1,493,889 (51,889)
Excess (deficiency) of revenues over expenditures (874,500) (926,793) (52,293)
OTHER FINANCING SOURCES
Sale of capital assets 6,000 99,420 93,420
Net Change in Fund Balance (868,500) (827,373) 41,127
FUND BALANCE - Beginning 1,890,883 1,890,883 -
FUND BALANCE - ENDING 1,022,383$ 1,063,510$ 41,127$
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
CITY OF ROSEMOUNT
For the Year Ended December 31, 2016
IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL
EQUIPMENT CIP CAPITAL PROJECT SUB-FUND
STATISTICAL SECTION
This part of the City of Rosemount’s comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the government’s overall financial health.
Contents Page
Financial Trends 73
These schedules contain trend information to help the reader understand how the
government’s financial performance and well-being have changed over time.
Revenue Capacity 78
These schedules contain information to help the reader assess the government’s
most significant local revenue source, the property tax.
Debt Capacity 82
These schedules present information to help the reader assess the affordability of
the government’s current levels of outstanding debt and the government’s ability
to issue additional debt in the future.
Demographic and Economic Information 87
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government’s financial activities
take place.
Operating Information 89
These schedules contain service and infrastructure data to help the reader
understand how the information in the government’s financial report relates to the
services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports
for the relevant year.
Page 73
Schedule 1
City of Rosemount
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets 39,140,878$ 37,876,848$ 41,347,888$ 49,563,765$ 53,419,036$ 54,828,890$ 57,746,938$ 58,438,402$ 64,684,403$ 69,942,544$
Restricted (1)8,736,586 6,621,026 4,637,711 5,361,675 5,764,792 6,608,554 7,148,774 - - -
Restricted for debt service - - - - - - - 7,709,903 6,925,597 6,111,575
Restricted donations for future construction - - - - - - - 1,988,610 1,589,000 -
Restricted for pension - - - - - - - - 1,123,544 1,001,490
Unrestricted 9,602,486 14,114,135 14,979,767 14,089,305 16,772,383 15,970,416 15,883,105 17,913,535 13,031,913 13,100,682
Total governmental activities net position 57,479,950 58,612,009 60,965,366 69,014,745 75,956,211 77,407,860 80,778,817 86,050,450 87,354,457 90,156,291
Business-type activities
Net investment in capital assets 86,225,033$ 89,687,681$ 91,948,323$ 89,025,234$ 90,695,202$ 93,501,405$ 95,770,585$ 98,194,408$ 96,808,557$ 98,722,624$
Unrestricted 21,307,733 20,158,226 18,517,148 20,059,049 17,772,742 19,247,600 18,591,663 19,348,437 20,376,753 21,739,120
Total business-type activities net position 107,532,766 109,845,907 110,465,471 109,084,283 108,467,944 112,749,005 114,362,248 117,542,845 117,185,310 120,461,744
Primary government
Net investment in capital assets 125,365,911$ 127,564,529$ 133,296,211$ 138,588,999$ 144,114,238$ 148,330,295$ 153,517,523$ 156,632,810$ 161,492,960$ 168,665,168$
Restricted (1)8,736,586 6,621,026 4,637,711 5,361,675 5,764,792 6,608,554 7,148,774 - - -
Restricted for debt service - - - - - - - 7,709,903 6,925,597 6,111,575
Restricted donations for future construction - - - - - - - 1,988,610 1,589,000 -
Restricted for pension - - - - - - - - 1,123,544 1,001,490
Unrestricted 30,910,219 34,272,361 33,496,915 34,148,354 34,545,125 35,218,016 34,474,768 37,261,972 33,408,666 34,839,802
Total primary government net position 165,012,716$ 168,457,916$ 171,430,837$ 178,099,028$ 184,424,155$ 190,156,865$ 195,141,065$ 203,593,295$ 204,539,767$ 210,618,035$
(1) Prior to 2014 "Restricted" was included in one summary line.
Source: City of Rosemount Comprehensive Annual Financial Reports
Fiscal Years
Page 74
Schedule 2
City of Rosemount
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Governmental activities
General government 2,610,367$ 2,639,752$ 2,754,573$ 2,671,886$ 2,612,911$ 2,701,234$ 2,583,271$ 2,961,500$ 2,878,070$ 4,426,817$
Public safety 3,293,615 3,468,249 3,688,658 3,819,520 3,763,742 3,872,633 4,051,642 4,233,610 4,378,347 5,629,866
Public works 4,974,625 5,279,784 4,260,284 4,326,903 4,336,345 4,341,203 5,448,047 5,764,176 4,468,049 4,765,115
Culture, education and recreation 1,386,322 1,417,400 1,378,619 1,477,525 1,496,068 2,405,676 1,586,449 1,613,600 1,643,886 1,959,224
Conservation and economic development 9,677 1,956,865 648,476 149,701 9,069 - 3,267 1,032,304 53,040 3,968
Interest and fiscal charges 841,108 958,900 750,226 690,896 637,609 541,386 517,067 501,682 569,722 476,121
Total governmental activities expenses 13,115,714 15,720,950 13,480,836 13,136,431 12,855,744 13,862,132 14,189,743 16,106,872 13,991,114 17,261,111
Business-Type activities
Water Utility 2,366,263 1,893,099 1,878,310 1,861,467 1,792,613 1,827,543 1,903,275 1,962,833 2,219,781 2,075,460
Sewer Utility 2,059,411 2,123,397 2,313,576 2,305,503 2,386,660 2,317,324 2,425,486 2,522,913 2,575,330 2,742,402
Storm Water Utility 1,245,492 988,716 989,808 1,010,678 950,114 968,935 989,574 1,122,839 1,117,526 1,228,697
Arena 468,017 537,530 456,706 484,278 479,707 498,118 578,345 493,943 497,838 510,968
Total Business-Type activities expenses 6,139,183 5,542,742 5,638,400 5,661,926 5,609,094 5,611,920 5,896,680 6,102,528 6,410,475 6,557,527
Total primary government expenses 19,254,897$ 21,263,692$ 19,119,236$ 18,798,357$ 18,464,838$ 19,474,052$ 20,086,423$ 22,209,400$ 20,401,589$ 23,818,638$
Program Revenues
Governmental activities
Charges for services
General government 1,876,616$ 2,031,866$ 1,501,756$ 1,672,014$ 1,881,337$ 2,286,892$ 2,465,695$ 3,202,744$ 3,182,769$ 3,128,969$
Public safety 159,624 203,056 169,112 151,802 169,718 184,011 139,432 146,973 151,168 150,571
Public works 8,893 32,160 15,050 20,912 68,166 45,564 53,813 59,417 99,060 54,893
Culture, education and recreation 693,482 403,560 244,374 263,238 272,958 365,486 342,100 571,222 728,567 392,102
Operating grants and contributions
General government 25,823 22,580 - - - 46,326 - - - 20,631
Public safety 251,262 233,349 254,175 246,346 249,515 275,114 263,805 283,095 406,657 547,505
Public works 926,545 392,136 380,737 311,630 108,640 53,198 32,790 53,515 41,235 41,235
Culture, education and recreation 1,163 628 659 26,484 33,499 1,275 6,241 3,736 7,347 2,617
Conservation and economic development 15,400 82,803 60,100 20,100 67,400 - 20,635 22,536 23,000 24,000
Capital grants and contributions
General government 117,025 1,775 7,118 - - - - 1,988,610 - -
Public safety 1,562 337 3,971 697 - - - 18,131 - 3,918
Public works 4,667,378 3,762,115 1,206,361 5,320,892 4,214,641 3,628,190 3,967,849 4,318,692 1,650,864 3,170,374
Culture, education and recreation 423,305 531 4,203 9,218 - - - - - 419
Conservation and economic development - 522,179 256,357 19,425 - 39,352 322,808 740,660 287,090 7,000
Total governmental activities program revenues 9,168,078 7,689,075 4,103,973 8,062,758 7,065,874 6,925,408 7,615,168 11,409,331 6,577,757 7,544,234
Fiscal Years
Page 75
Schedule 2 (continued)
City of Rosemount
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Business-Type activities
Charges for services
Water Utility 2,092,633 2,027,618 1,764,784 1,952,359 1,983,264 2,406,557 2,167,709 2,379,147 2,552,123 2,692,740
Sewer Utility 1,677,768 1,767,732 1,482,651 1,470,801 1,470,626 1,707,730 1,716,022 1,733,646 1,873,687 1,996,130
Storm Water Utility 1,056,510 1,137,287 852,704 888,995 927,429 1,135,067 1,061,632 1,350,259 1,544,158 1,387,817
Arena 373,504 390,631 370,964 406,797 378,046 352,930 376,058 392,631 408,874 430,103
Operating grants and contributions
Water Utility - - - - - - - 9,901 - 24,248
Storm Water Utility - - - - - - - 19,680 - -
Capital grants and contributions
Water Utility 46,807 56,388 70,279 72,960 243,835 168,573 371,582 180,568 75,622 1,041,806
Sewer Utility 88,516 392,757 416,493 71,656 110,538 207,422 83,484 98,863 85,848 1,153,536
Storm Water Utility - 18,165 1,075,041 85,242 190,022 487,082 648,297 193,402 42,708 989,073
Total Business-Type activities program revenues 5,335,738 5,790,578 6,032,916 4,948,810 5,303,760 6,465,361 6,424,784 6,358,097 6,583,020 9,715,453
Total primary government program revenues 14,503,816 13,479,653 10,136,889 13,011,568 12,369,634 13,390,769 14,039,952 17,767,428 13,160,777 17,259,687
Net (Expense) Revenue
Governmental activities (3,947,636) (8,031,875) (9,376,863) (5,073,673) (5,789,870) (6,936,724) (6,574,575) (4,697,541) (7,413,357) (9,716,877)
Business-Type activities (803,445) 247,836 394,516 (713,116) (305,334) 853,441 528,104 255,569 172,545 3,157,926
Total primary government net expense (4,751,081)$ (7,784,039)$ (8,982,347)$ (5,786,789)$ (6,095,204)$ (6,083,283)$ (6,046,471)$ (4,441,972)$ (7,240,812)$ (6,558,951)$
General Revenues and Other Changes in Net Position
Governmental activities
Property taxes, levied for general purposes 8,640,194$ 9,437,336$ 9,768,391$ 10,023,255$ 10,266,170$ 10,001,071$ 10,123,158$ 10,328,709$ 10,479,883$ 10,709,952$
Property taxes, levied for debt service 2,025,349 2,005,338 1,711,452 1,257,365 936,054 1,038,404 1,037,524 1,022,258 1,094,210 1,142,142
Other taxes 201,446 208,667 224,276 264,808 262,783 242,491 259,064 288,425 332,290 354,571
Investment income 967,337 611,533 297,536 164,474 243,193 136,310 121,886 221,243 181,754 270,676
Change in fair value of investments n/a n/a n/a n/a n/a n/a (458,073) 319,644 (1,788) (147,945)
Gain (loss) on the sale of assets - (2,125,256) (851,439) - 130,114 13,248 12,883 - 7,328 -
Miscellaneous 326,263 365,516 340,763 429,150 204,149 127,617 116,123 103,615 104,237 103,394
Transfers (3,599,876) (1,339,200) 239,241 984,000 688,873 (3,170,768) (1,267,033) (2,314,720) (31,534) 85,921
Total governmental activities 8,560,713 9,163,934 11,730,220 13,123,052 12,731,336 8,388,373 9,945,532 9,969,174 12,166,380 12,518,711
Business-Type activities
Investment income 1,102,729 726,105 464,289 315,928 377,868 256,852 209,227 333,929 272,336 339,012
Change in fair value of investments n/a n/a n/a n/a n/a n/a (391,121) 276,379 (24,638) (134,583)
Transfers 3,599,876 1,339,200 (239,241) (984,000) (688,873) 3,170,768 1,267,033 2,314,720 31,534 (85,921)
Total Business-Type activities 4,702,605 2,065,305 225,048 (668,072) (311,005) 3,427,620 1,085,139 2,925,028 279,232 118,508
Total primary government 13,263,318 11,229,239 11,955,268 12,454,980 12,420,331 11,815,993 11,030,671 12,894,202 12,445,612 12,637,219
Change in Net Position
Governmental activities 4,613,077 1,132,059 2,353,357 8,049,379 6,941,466 1,451,649 3,370,957 5,271,633 4,753,023 2,801,834
Business-Type activities 3,899,160 2,313,141 619,564 (1,381,188) (616,339) 4,281,061 1,613,243 3,180,597 451,777 3,276,434
Total primary government 8,512,237$ 3,445,200$ 2,972,921$ 6,668,191$ 6,325,127$ 5,732,710$ 4,984,200$ 8,452,230$ 5,204,800$ 6,078,268$
Source: City of Rosemount Comprehensive Annual Financial Reports
n/a - Not Available
Fiscal Years
Page 76
Schedule 3
City of Rosemount
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Fund
Reserved for
Prepaid items 25,797$ 34,120$ 78,379$ 33,280$ -$ -$ -$ -$ -$ -$
Encumbrances 558,190 524,904 638,254 465,544 - - - - - -
Unreserved
Designated 6,456,649 6,480,777 6,536,929 6,653,352 - - - - - -
Undesignated 8,967 10,059 15,549 32,941 - - - - - -
Nonspendable - - - - 85,067 80,623 67,266 66,238 69,348 -
Assigned - - - - 1,894,348 2,319,433 2,292,257 2,808,794 2,981,632 2,969,701
Unassigned - - - - 5,700,071 5,905,056 6,001,628 6,288,615 6,506,697 6,918,833
Total General Fund 7,049,603 7,049,860 7,269,111 7,185,117 7,679,486 8,305,112 8,361,151 9,163,647 9,557,677 9,888,534
All Other Governmental Funds
Reserved for
Debt service 7,180,264 5,582,205 3,854,760 6,173,964 - - - - - -
Special revenue funds - prepaid items 416 - - - - - - - - -
Capital projects funds - encumbrances 239,803 331,014 1,118,650 1,061,526 - - - - - -
Unreserved
Designated
Capital projects funds 4,662,910 5,297,333 4,984,835 3,510,512 - - - - - -
Special revenue funds 48,791 15,017 9,374 6,900 - - - - - -
Undesignated
Port Authority TIF fund (3,370,688) 182,826 262,577 429,284 - - - - - -
Special revenue funds 114,581 109,523 125,132 134,919
Nonspendable for
Capital projects funds - - - - - 10,000 10,000 10,000 10,000 10,000
Nonmajor governmental funds - - - - - - - 549 606 113
Restricted for
Debt service - - - - 4,782,476 4,193,284 4,554,980 4,976,137 5,256,841 4,307,191
Capital Projects - - - - - - - 1,988,610 1,589,000 -
Port Authority TIF fund - - - - 677,057 887,616 1,046,218 1,021,730 4,534,417 4,994,060
Committed for
Nonmajor governmental funds - - - - 159,048 191,307 214,031 290,834 190,941 181,276
Assigned for Capital projects funds - - - - 8,515,086 6,229,951 6,243,406 7,330,501 6,923,755 8,397,771
Total All Other Governmental Funds 8,876,077 11,517,918 10,355,328 11,317,105 14,133,667 11,512,158 12,068,635 15,618,361 18,505,560 17,890,411
Total All Funds 15,925,680$ 18,567,778$ 17,624,439$ 18,502,222$ 21,813,153$ 19,817,270$ 20,429,786$ 24,782,008$ 28,063,237$ 27,778,945$
Source: City of Rosemount Comprehensive Annual Financial Reports
Note: Beginning in 2011, the categories of fund balance changed with the implementation of GASB statement No. 54
Fiscal Years
Page 77
Schedule 4
City of Rosemount
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues
Taxes 10,447,961$ 11,079,607$ 11,049,769$ 10,822,174$ 10,643,333$ 10,376,939$ 10,514,617$ 10,747,756$ 10,940,420$ 11,167,397$
Tax increments 159,030 296,735 379,351 448,253 576,675 660,056 660,130 646,636 720,963 794,268
Intergovernmental 1,194,371 1,511,195 947,554 4,051,643 2,394,400 584,381 2,288,281 2,509,924 882,930 674,220
Public charges for services 1,967,889 1,844,648 1,382,597 1,540,191 2,226,976 2,277,051 2,370,562 3,132,556 3,352,219 2,826,231
Licenses and permits 650,634 698,756 430,551 453,900 388,615 484,644 522,131 730,765 694,765 792,557
Fines and forfeitures 120,870 129,220 124,068 122,394 124,324 129,343 106,617 116,384 114,580 108,561
Special assessments 1,582,277 962,950 757,223 832,686 496,386 2,155,618 1,539,059 2,123,199 2,368,403 1,035,044
Investment income and miscellaneous 4,426,241 3,538,350 1,268,846 1,224,178 1,552,188 1,773,249 650,402 3,135,395 1,240,234 508,130
Total revenues 20,549,273 20,061,461 16,339,959 19,495,419 18,402,897 18,441,281 18,651,799 23,142,615 20,314,514 17,906,408
Expenditures
General government 2,380,884 2,579,263 2,522,244 2,368,489 2,382,663 2,569,649 2,506,529 2,752,153 2,841,775 2,977,518
Public safety 2,913,163 3,096,468 3,297,520 3,366,500 3,436,225 3,510,222 3,632,212 3,762,826 4,014,411 4,072,189
Public works 2,568,514 3,105,778 2,687,294 2,805,767 3,078,059 3,032,940 3,285,257 3,192,487 2,957,952 3,005,419
Parks and recreation 1,152,615 1,186,883 1,153,777 1,239,742 1,239,857 1,271,513 1,321,946 1,304,867 1,298,271 1,516,720
Conservation and development - 1,944,457 160,445 139,965 - - - 376,496 - -
Capital Outlay 9,719,678 6,689,680 3,835,826 7,808,264 6,185,959 8,096,866 7,628,944 9,470,432 6,831,658 5,087,107
Debt Service
Principal retirement 3,565,000 4,300,000 3,645,000 1,840,000 2,225,000 2,405,000 1,545,000 1,580,000 3,470,000 2,165,000
Interest and fiscal charges 1,013,010 843,205 826,350 726,878 677,469 582,377 511,526 508,605 573,607 495,638
Total expenditures 23,312,864 23,745,734 18,128,456 20,295,605 19,225,232 21,468,567 20,431,414 22,947,866 21,987,674 19,319,591
Excess (deficiency) of revenues
over (under) expenditures (2,763,591) (3,684,273) (1,788,497) (800,186) (822,335) (3,027,286) (1,779,615) 194,749 (1,673,160) (1,413,183)
Other financing sources (uses)
Issuance of long-term debt 450,000 6,425,000 - 1,355,000 2,080,000 810,000 1,500,000 2,400,000 4,680,000 -
Payment to escrow agent (1,800) - - - - - - - - -
Premium on long-term debt - - - - - - - - 180,637 -
Sale of capital assets 19,005 4,780 3,000 12,505 10,121 12,740 3,627 348,335 69,578 407,581
Transfers in 2,120,800 1,366,084 1,639,211 3,089,286 2,847,900 348,663 1,330,491 1,908,755 1,008,983 851,403
Transfers out (185,469) (1,469,493) (797,053) (2,778,822) (804,755) (140,000) (441,987) (499,617) (984,809) (130,093)
Total other financing sources (uses)2,402,536 6,326,371 845,158 1,677,969 4,133,266 1,031,403 2,392,131 4,157,473 4,954,389 1,128,891
Net change in fund balances (361,055)$ 2,642,098$ (943,339)$ 877,783$ 3,310,931$ (1,995,883)$ 612,516$ 4,352,222$ 3,281,229$ (284,292)$
Fund balances - Beginning 16,286,735 15,925,680 18,567,778 17,624,439 18,502,222 21,813,153 19,817,270 20,429,786 24,782,008 28,063,237
Fund balances - Ending 15,925,680$ 18,567,778$ 17,624,439$ 18,502,222$ 21,813,153$ 19,817,270$ 20,429,786$ 24,782,008$ 28,063,237$ 27,778,945$
Debt service as a percentage of
noncapital expenditures 33.7%30.2%31.3%20.1%22.0%22.3%16.1%15.5%26.7%18.7%
Source: City of Rosemount Comprehensive Annual Financial Reports
Fiscal Years
Page 78
Schedule 5
City of Rosemount
Assessed Value (or Tax Capacity) and Estimated Market Value of All Taxable Property
Last Ten Fiscal Years
Total
Tax
Capacity
as % of
Local Tax Estimated Local Tax Estimated Local Tax Estimated City Estimated State Tax
Net Tax Market Net Tax Market Net Tax Market Tax Market Net TaxPay-Year Capacity (1)Value Capacity (1)Value Capacity (1)Value Rate (2)Value Capacity (1)
2007 24,048,070$ 2,160,568,300$ 484,629$ 25,212,600$ 24,532,699$ 2,185,780,900$ 42.521 1.12%5,088,943$
2008 26,171,550 2,340,595,000 479,034 25,165,300 26,650,584 2,365,760,300 42.440 1.13%5,661,820
2009 26,303,216 2,338,770,100 539,678 28,233,700 26,842,894 2,367,003,800 42.323 1.13%6,048,039
2010 25,067,278 2,209,334,700 566,090 29,516,800 25,633,368 2,238,851,500 43.358 1.14%6,321,515
2011 23,635,880 2,078,373,200 685,721 35,284,800 24,321,601 2,113,658,000 44.661 1.15%6,248,792
2012 21,590,701 1,878,822,866 689,398 35,353,750 22,280,099 1,914,176,616 46.994 1.16%6,203,052
2013 21,076,941 1,829,557,955 728,110 37,319,224 21,805,051 1,866,877,179 48.862 1.17%6,237,507
2014 21,898,381 1,908,586,387 788,742 40,027,970 22,687,123 1,948,614,357 47.676 1.16%6,371,221
2015 23,706,444 2,087,149,995 797,258 40,447,970 24,503,702 2,127,597,965 45.152 1.15%6,429,613
2016 25,325,479 2,241,801,959 893,756 45,278,045 26,219,235 2,287,080,004 43.149 1.15%6,649,004
Source: Dakota County Assessor's Office, Usage Classification Report - Real Estate and Personal Properties
Note: Property values shown are established at January 1 of the year preceding the "Pay-Year" listed.
They are the basis of the taxes collected and applied to the "Pay-Year".
(1) Beginning with 2011, the State made changes in the valuations by adding a "Market Value Exclusion" for properties valued at less than $414,000 that resulted in large reductions
in the Estimated Market Values and the Net Tax Capacity Values.
(2) Rates taken from Schedule 6
Real Property Personal Property Total
1.09%
1.10%
1.11%
1.12%
1.13%
1.14%
1.15%
1.16%
1.17%
1.18%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Tax Capacity as % of
Estimated Market Value
Total %
Page 79
Schedule 6
ISD 196 ISD 199 ISD 200 Dakota Totals
City Market School Market School Market School Market County School School School
Year Referendum District Referendum District Referendum District Referendum Dakota Referendum Special District District District
Collectible City Rates (1)No. 196 Rates (1)No. 199 Rates (1)No. 200 Rates (1)County Rates (1)Districts No. 196 No. 199 No. 200
2007 42.521 0.00665 23.607 0.20824 16.607 0.13682 18.157 0.22957 25.127 0.00516 5.024 96.279 89.279 90.829
2008 42.440 0.00623 21.136 0.21274 19.764 0.13159 16.676 0.22733 25.184 0.00471 4.996 93.756 92.384 89.296
2009 42.323 0.00631 21.109 0.21032 19.303 0.13392 16.735 0.22372 25.821 0.00471 4.916 94.169 92.363 89.795
2010 43.358 0.00652 25.391 0.22268 21.795 0.15183 20.206 0.25903 27.269 0.00501 4.987 101.005 97.409 95.820
2011 44.661 0.00697 26.959 0.22601 24.679 0.15606 22.140 0.26626 29.149 0.00537 5.199 105.968 103.688 101.149
2012 46.994 n/a 28.440 0.22131 28.363 0.16428 25.435 0.28618 31.426 0.00551 5.562 112.422 112.345 109.417
2013 48.862 n/a 27.956 0.23542 27.556 0.18354 23.932 0.29483 33.421 n/a 5.884 116.123 115.723 112.099
2014 47.676 n/a 27.606 0.25809 33.418 0.15657 23.052 0.26005 31.827 n/a 5.538 112.647 118.459 108.093
2015 45.152 n/a 23.271 0.25484 34.864 0.16151 20.965 0.25310 29.633 n/a 5.033 103.089 114.682 100.783
2016 43.149 n/a 24.317 0.26999 30.272 0.13929 20.938 0.25990 28.570 n/a 5.063 101.099 107.054 97.720
Source: Dakota County Treasurer-Auditor
Note: All rates are overlapping rates except for the "City" and the "City Market Referendum Rates" (these two are the
City's direct rates). Overlapping rates consist of the "School Districts", "Dakota County" and the "Special Districts".
(1) Levies for voter approved referendums are based on market value. Therefore, a separate rate
value. Therefore, a separate rate for these market valued leviesis 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.
n/a - Not Applicable
(Rate per 1% of Market Value)
City of Rosemount
Property Tax Rates - All Direct and Overlapping Governmental Units
Last Ten Fiscal Years
Page 80
2016 2007
Percentage Percentage
Local of Total Local of Total
Tax Local Tax Tax Local Tax
Taxpayer Capacity (1)Rank Capacity Capacity (1)Rank Capacity
Flint Hills Resources Pine Bend LLC (Merged w/below)2,985,514$ 1 11.39%1,392,948$ 1 5.68%
Great Northern Oil Company (2007 - Koch Refining)833,652 2 3.40%
Northern States Power Co.351,754 2 1.34%301,418 3 1.23%
Clarel Corporation (Cub Foods)185,686 3 0.71%204,670 4
Northern Natural Gas Co.176,376 4 0.67%-
146th Street Partners LP (Waterford Commons)168,986 5 0.64%-
CF Industries Sales LLC (Cenex)128,806 6 0.49%82,272 10 0.34%
Hawkins Inc.101,700 7 0.39%-
Minnesota Pipeline Co.100,410 8 0.38%-
Minnesota Energy Resources Corp.99,648 9 0.38%-
Rosemount Crossing LLC (Aldi's)87,704 10 0.33%93,356 6
Francis & Patricia Dolejs (Celtic Crossing)84,948 11 0.32%-
Proto Labs Inc. (2007 - Webb Properties LLC)84,042 12 0.32%95,126 5 0.39%
Dakota Aggregates 82,990 13 0.32%-
Limerick Way LLC 81,012 14 0.31%85,001 8 0.35%
CMC Properties LLC (Wayne Transport)79,578 15 0.30%-
Bigos - Rosemount LLC (Cannon Equipment)- 91,146 7 0.37%
Continental Nitrogen & Resources (CNR)- 82,704 9 0.34%
Hidden Valley SPE LLC (Rosemount Woods)- 75,534 11 0.31%
Labriola Inv. LLC & G&K Family Limited Partnership - 71,804 12 0.29%
Flint Hills Resources LP - 63,880 13 0.26%
Progress Land Company - 57,869 14 0.24%
Koch Exploration Properties LLC - 34,872 15 0.14%
Principal Taxpayers Total 4,799,154$ 18.30%3,566,252$ 14.54%
Total City Tax Capacity 26,219,235$ 24,532,699$
Source: Dakota County Treasurer-Auditor
(1) These figures do not include the dollars collected but the tax capacity for each entity.
Schedule 7
City of Rosemount
Principal Property Tax Payers
Current Year and Nine Years Ago
Page 81
Ratio of
Percent of Delinquent Total Outstanding Total Tax
Total Tax Current Tax Current Taxes Tax Tax Delinquent Collections to
Year Levy (1)Collections Collected Collections (2)Collections Taxes Total Tax Levy
2007 10,561,484$ 10,440,106$ 98.85%108,978$ 10,549,084$ -$ 100.00%
2008 11,368,729 11,202,867 98.54%128,875 11,331,742 - 100.00%
2009 11,411,690 11,279,747 98.84%144,999 11,424,746 - 100.00%
2010 11,160,169 11,059,249 99.10%161,848 11,221,097 9,707 99.91%
2011 10,985,813 10,898,846 99.21%123,066 11,021,912 1,008 99.99%
2012 10,490,554 10,418,211 99.31%99,300 10,517,511 292 100.00%
2013 10,750,485 10,667,447 99.23%84,910 10,752,357 1,647 99.98%
2014 11,031,983 10,986,828 99.59%110,510 11,097,338 1,960 99.98%
2015 11,313,577 11,279,075 99.70%43,833 11,322,908 8,055 99.93%
2016 11,465,695 11,417,277 99.58%53,354 11,470,631 47,751 99.58%
Source: Dakota County Treasurer-Auditor
(1) The total tax levy differs from actual levy certified to the County by the City because of fiscal disparity calculations done by the County after certification.
(2) Delinquent tax collections are all delinquent collections during that tax year - not just for the delinquent collections of that calendar year.
Schedule 8
City of Rosemount
Property Tax Levies and Collections
Last Ten Fiscal Years
Page 82
Schedule 9
Business -
Type
Activities
G.O. and G.O. and
G.O. Property G.O. Tax Revenue Special G.O. Municipal G.O.Total Percentage
Personal Tax Increment Equipment Supported Assessment State Aid Revenue Primary of Personal Per
Year Population(1)Income(1)Supported(2)Supported(2)Certificates(2)(Port Auth.)(2)Supported(2)Supported(2)Bonds(2)Government Income Capita
2007 22,397 1,008,872,865$ 4,030,000$ -$ 1,765,000$ 3,585,000$ 9,705,000$ -$ 8,555,000$ 27,640,000$ 2.74%1,234$
2008 22,750 1,054,621,750 3,760,000 6,040,000 1,775,000 3,350,000 6,285,000 - 6,850,000 28,060,000 2.66%1,233
2009 23,750 1,053,882,500 3,475,000 6,040,000 1,310,000 1,555,000 5,185,000 - 6,160,000 23,725,000 2.25%999
2010 21,874 988,529,808 3,185,000 6,040,000 760,000 2,820,000 4,275,000 - 6,965,000 24,045,000 2.43%1,099
2011 22,239 1,033,557,525 2,885,000 6,040,000 520,000 2,725,000 4,765,000 - 4,585,000 21,520,000 2.08%968
2012 22,432 1,118,167,904 2,575,000 6,005,000 265,000 1,355,000 5,140,000 - 3,785,000 19,125,000 1.71%853
2013 22,711 1,151,152,457 2,255,000 5,930,000 85,000 1,230,000 5,795,000 - 1,935,000 17,230,000 1.50%759
2014 23,044 1,202,366,788 2,010,000 5,820,000 - 1,105,000 7,180,000 - 1,400,000 17,515,000 1.46%760
2015 23,244 1,212,802,188 3,100,000 9,005,000 - 980,000 5,865,000 - 2,515,000 21,465,000 1.77%923
2016 23,574 1,230,020,598 1,345,000 8,810,000 - 855,000 4,150,000 - 2,090,000 17,250,000 1.40%732
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Population and personal income figures are taken from Schedule 14.
(2) Figures taken from City of Rosemount bond documents.
Governmental Activities
City of Rosemount
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Page 83
Schedule 10
Percentage of
Estimated Less Restricted Total Estimated
Market G.O.Debt Service General Market Per
Year Population(1)Value(2)Debt (3)Funds Bonded Debt Value Capita
2007 22,397 2,185,780,900$ 27,640,000$ 709,370$ 26,930,630$ 1.23%1,202$
2008 22,750 2,365,760,300 28,060,000 866,988 27,193,012 1.15%1,195$
2009 23,750 2,367,003,800 23,725,000 2,038,321 21,686,679 0.92%913$
2010 21,874 2,238,851,500 21,245,000 1,936,318 19,308,682 0.86%883$
2011 22,239 2,113,658,000 21,520,000 1,605,726 19,914,274 0.94%895$
2012 22,432 1,914,176,616 19,125,000 1,129,632 17,995,368 0.94%802$
2013 22,711 1,866,877,179 17,230,000 737,907 16,492,093 0.88%726$
2014 23,044 1,948,614,357 17,515,000 528,504 16,986,496 0.87%737$
2015 23,244 2,127,597,965 21,465,000 5,151,437 16,313,563 0.77%702$
2016 23,574 2,287,080,004 17,250,000 3,469,959 13,780,041 0.60%585$
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Population figures are taken from Schedule 14.
(2) Estimated Market Value figures are taken from Schedule 5.
(3) Figures taken from City of Rosemount bond documents.
General Bonded Debt Outstanding
City of Rosemount
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Page 84
City of Rosemount
Governmental Estimated Estimated
Activities Percentage Amount
Debt Applicable Applicable
Governmental Units (1)Outstanding (2)to City (4)to City
Direct Debt:
City of Rosemount 15,160,000$ 100.00%15,160,000$
Overlapping Debt:
School Districts:
I.S.D. 196 - Rosemount 183,240,000 14.20%26,020,080
I.S.D. 199 - Inver Grove Heights 63,150,000 5.50%3,473,250
I.S.D. 200 - Hastings 36,745,000 0.10%36,745
Regional:
Metropolitan Council 17,525,000 (3)0.70%122,675
Total Overlapping Debt 300,660,000$ 29,652,750$
Total Direct & Overlapping Debt 315,820,000$ 44,812,750$
(1) Only those units with outstanding general obligation debt are shown here.
(2) Excludes general obligation tax and aid anticipation certificates and revenue-supported debt.
(3) Excludes general obligation debt supported by wastewater revenues and housing rental payments.
Includes certificates of participation.
(4) Percent of governmental unit within the City of Rosemount's boundaries calculated
by the city's Financial Advisors, Springsted Inc.
Schedule 11
Direct and Overlapping Governmental Activities Debt
As of December 31, 2016
Page 85
City of Rosemount
Legal Debt Margin Calculation for Fiscal Year 2016
Estimated Market Value 2,287,080,004$
Debt Limitation - 3% of Estimated Market Value 68,612,400
Debt Applicable to Limitation:
Total Bonded Debt 17,250,000$
Less: Special Assessment Bonds 4,150,000$
Tax Increment Bonds 8,810,000
Revenue Bonds 2,090,000
Port Authority Bonds 855,000
Amount Available for Repayment
of G.O. Bonds 160,517 16,065,517
Total Debt Applicable to Limitation 1,184,483
Legal Debt Margin 67,427,917$
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Estimated Market Value 2,185,780,900$ 2,365,760,300$ 2,367,003,800$ 2,238,851,500$ 2,113,658,000$ 1,914,176,616$ 1,866,877,179$ 1,948,614,357$ 2,127,597,965$ 2,287,080,004$
Debt Limit - 3% of Estimated Market Value - 43,715,618 70,972,809 71,010,114 67,165,545 63,409,740 57,425,298 56,006,315 58,458,431 63,827,939 68,612,400
Limit was 2% prior to 2008
Total Net Debt Applicable to Debt Limit 5,085,630 4,668,012 2,746,679 2,008,682 1,799,274 1,710,368 1,602,093 1,481,496 1,298,857 1,184,483
Legal Debt Margin 38,629,988$ 66,304,797$ 68,263,435$ 65,156,863$ 61,610,466$ 55,714,930$ 54,404,222$ 56,976,935$ 62,529,082$ 67,427,917$
Legal debt margin as a percentage of
the debt limit 88.37%93.42%96.13%97.01%97.16%97.02%97.14%97.47%97.97%98.27%
Note: Under State law, the City's outstanding general debt cannot exceed 3% of the total estimated market value of the City. (Debt limit was 2% prior to 2008)
The legal debt margin is the City's available borrowing authority under State law and is calculated by subtracting the net debt applicable to the legal debt limit from the legal debt limit.
Fiscal Year
Schedule 12
Legal Debt Margin Information
Last Ten Fiscal Years
Page 86
Net Revenue
Available Special
Gross For Debt Assessment
Year Revenue Expenses (1)Service Principal (2)Interest Total Coverage Collections Principal (3)Interest Total Coverage
2007 3,299,851$ 3,285,070$ 14,781$ 820,000$ 313,579$ 1,133,579$ 1.30%1,582,277$ 1,620,000$ 450,362$ 2,070,362$ 76.43%
2008 3,327,919 2,616,921 710,998 1,705,000 298,025 2,003,025 35.50%962,950 3,420,000 330,859 3,750,859 25.67%
2009 3,379,397 2,744,735 634,662 690,000 256,788 946,788 67.03%757,223 1,100,000 224,448 1,324,448 57.17%
2010 3,543,743 2,771,544 772,199 740,000 230,836 970,836 79.54%832,686 910,000 184,068 1,094,068 76.11%
2011 3,744,722 2,737,918 1,006,804 2,380,000 218,295 2,598,295 38.75%496,386 1,590,000 147,850 1,737,850 28.56%
2012 4,175,312 2,767,111 1,408,201 800,000 133,478 933,478 150.86%2,155,618 435,000 112,512 547,512 393.71%
2013 4,419,729 2,958,568 1,461,161 1,850,000 110,313 1,960,313 74.54%1,539,059 845,000 103,835 948,835 162.21%
2014 4,195,215 3,262,938 932,277 535,000 53,940 588,940 158.30%2,123,199 1,015,000 97,241 1,112,241 190.89%
2015 4,428,925 3,514,975 913,950 410,000 39,921 449,921 203.14%2,368,403 1,315,000 97,562 1,412,562 167.67%
2016 4,778,063 3,587,124 1,190,939 425,000 52,360 477,360 249.48%1,035,044 1,715,000 77,163 1,792,163 57.75%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Figure does not include depreciation expense.
(2) 2008 includes call payments on 1996B & 1999C bonds, 2011 includes call payments on 2001B, 2002B & 2003B bonds and 2013 includes call payment on 2005C bonds.
(3) 2008 includes call/defeasance program for 1999B & 2001A bonds and 2011 includes calls for 2002A & 2003A bonds.
Debt Service Requirements
City of Rosemount
G.O. Revenue Bonds
Debt Service Requirements
Schedule 13
Pledged-Revenue Coverage
Last Ten Fiscal Years
G.O. Special Assessment Bonds
Page 87
Schedule 14
City of Rosemount
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Per Capita Personal School Unemployment Median
Year Population (1)Income (2)Income (3)Enrollment (4)Rate (5)Age (6)
2007 22,397 45,045$ 1,008,872,865$ 4,458 4.4%35.9
2008 22,750 46,357 1,054,621,750 4,623 6.1%36.1
2009 23,750 44,374 1,053,882,500 5,266 7.0%36.2
2010 21,874 45,192 988,529,808 5,179 6.3%36.7
2011 22,239 46,475 1,033,557,525 4,745 5.2%37.2
2012 22,432 49,847 1,118,167,904 4,860 4.8%37.5
2013 22,711 50,687 1,151,152,457 4,889 4.1%37.4
2014 23,044 52,177 1,202,366,788 4,910 3.2%36.8
2015 23,244 52,177 1,212,802,188 5,074 3.0%36.8
2016 23,574 52,177 1,230,020,598 5,181 3.4%36.8
(1) 2010 is a regular decennial census figure. All years from 2007 and on (except for 2010) are the City staff's best estimates
as of 12/31 of each year to give a more indicative estimate of the actual population.
(2) These figures are provided by and are for Dakota County. These figures usually have a 2 to 3-year lag time
so that is why the two most current years use the 2014 figure for computing the "Personal Income" figure.
(3) These figures are derived by multiplying the City's population figure times Dakota County's per capita income figures.
(4) School enrollment is the total number of students who reside within the Rosemount High School boundaries and go to
Independent School District No. 196 schools located in Rosemount. The total school enrollment includes
the total number of students with homes in the City of Rosemount.
(5) Unemployment rates were compiled by the Minnesota Local Area Unemployment Statistics (LAUS) - for Dakota County.
(6) These figures are provided by Dakota County.
2014's median age is the most current information available so 2015 & 2016 shown as the same age.
Page 88
2016 2007
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Note: The City of Rosemount does not track this information and there are no sources at the County or State level to provide this information.
Current Year and Nine Years Ago
Schedule 15
City of Rosemount
Principal Employers
Page 89
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function/Program
General Government
Administration 4.50 4.50 4.50 4.50 4.50 3.50 3.50 3.50 3.50 4.50
Finance 3.50 4.50 4.30 4.30 4.30 4.30 4.30 4.55 4.55 4.55
Community Development 10.50 10.50 10.50 9.75 9.75 9.50 9.50 9.50 9.50 9.50
Police
Sworn Officers 21.00 22.00 22.00 22.00 22.00 22.00 22.00 23.00 23.00 23.00
Non-Sworn Employees 3.00 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.00 3.00
Fire
Firefighters and Officers 39.00 43.00 44.00 43.00 43.00 41.00 43.00 42.00 45.00 52.00
Fire Marshall 0.50 - - - - - - - - -
Public Works
Building Maintenance 1.00 - - - - 0.80 0.80 0.80 0.85 0.85
Fleet Maintenance 2.10 2.10 2.10 2.10 2.10 2.20 2.20 2.20 2.30 2.30
Street Maintenance 6.60 6.60 6.60 6.40 6.40 5.80 5.80 5.80 6.00 6.00
Parks Maintenance 5.60 5.60 5.60 5.60 5.60 4.60 4.60 4.60 4.65 4.65
Parks and Recreation
Parks & Rec 10.00 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 10.25
Arena 2.30 1.80 1.85 1.85 1.85 1.85 1.85 1.85 1.85 1.85
Utilities
Water 5.33 5.33 5.13 5.13 4.83 4.68 4.68 4.68 4.88 4.88
Sewer 5.33 5.33 5.13 5.13 4.83 4.68 4.68 4.68 4.88 4.88
Storm Water 2.25 2.25 2.30 2.30 2.10 2.10 2.10 2.10 2.30 2.30
122.50 126.25 126.76 124.81 124.01 119.75 121.75 122.00 125.75 134.50
Sources: Finance Department
Note: Employees listed are full-time and permanent part-time employees. Seasonal and temporary positions are not included.
Schedule 16
City of Rosemount
Full-Time/Permanent Part-Time City Government Employees by Function/Program
Last Ten Fiscal Years
Page 90
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function/Program
General Government
Total Permits Issued by the Building Department 3,083 3,389 2,366 2,400 2,359 2,251 2,471 2,879 2,677 3,033
Total Number of Inspections Conducted 5,505 5,774 4,572 4,311 4,048 3,553 4,296 4,618 5,467 5,927
Police
Number of Calls for Service 17,056 16,105 16,354 14,432 14,554 14,346 13,730 15,538 16,894 16,691
Number of Patrol Miles 216,291 209,310 206,619 211,460 152,097 194,764 186,490 195,393 204,226 185,101
Adult Arrests 586 646 424 340 432 369 312 230 465 326
Juvenile Arrests 209 239 206 182 146 107 102 101 88 105
Traffic Violations 2,378 1,522 1,548 1,605 2,232 2,610 2,147 2,452 1,872 1,939
Parking Violations 261 160 307 284 296 378 436 197 207 271
Fire
Number of Calls Answered 652 769 632 630 690 724 637 715 710 720
Fires Extinguished 63 5 59 34 34 52 35 38 33 38
Public Works
Street Resurfacing (Miles)0.75 1.20 0.64 10.50 1.30 2.30 1.60 1.20 - 1.20
Park Acres Mowed 135 127 127 134 134 154 154 154 154 160
Parks and Recreation
Overall Program Participation 14,000 14,000 14,200 14,500 14,500 14,500 15,000 15,000 15,200 15,200
Hours of Ice Time Used 2,544 2,545 2,466 2,577 2,515 2,577 2,479 2,378 2,670 2,678
Water
Connections 6,075 6,188 6,273 6,381 6,431 7,464 7,576 7,701 7,827 7,938
Water Main Breaks 2 - - - - - 1 1 2 1
Average Daily Consumption (In Gallons)2,604,281 2,494,238 2,569,474 2,261,972 2,344,546 2,665,979 2,412,638 2,233,593 2,227,616 2,520,915
Sewer
Connections 6,057 6,170 6,255 6,363 6,414 6,505 6,614 6,734 6,857 6,968
Sources: Various City departments.
Schedule 17
City of Rosemount
Operating Indicators by Function/Program
Last Ten Fiscal Years
Page 91
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function/Program
General Government
City Halls/Other Buildings 1 1 1 1 1 1 1 1 1 1
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units (Marked/Unmarked)8/4 9/4 9/4 9/4 9/4 9/4 9/4 8/6 9/6 9/6
Fire
Stations 2 2 2 2 2 2 2 2 2 2
Fire Units (Vehicles & Trailer)14 14 14 14 14 14 15 15 15 16
Public Works
Buildings 3 3 3 3 3 3 3 3 3 3
City Maintained Streets (Miles)102 102 103 103 103 105 106 108 110 110
Street Lights 1,290 1,300 1,488 1,500 1,500 1,510 1,520 1,539 1,561 1,568
Parks and Recreation
Community Centers 1 1 1 1 1 1 1 1 1 2
Shelters/Other Buildings 3 3 3 3 3 3 3 3 3 3
Acreage 430 430 440 440 467 467 534 533 533 540
Parks 26 26 27 27 28 28 27 29 29 30
Playgrounds 19 19 20 20 20 20 20 21 21 21
Baseball/Softball Diamonds 19 19 20 20 20 22 23 23 23 24
Soccer/Football Fields 13 13 16 16 16 16 19 19 19 20
Tennis Courts 6 6 8 8 8 8 8 12 12 12
Water
Water Mains (Miles)119 119 122 122 125 127 129 130 130 134
Wells (Municipal/Rural)8 7 8 8 8 8 8 8 8 8
Water Towers 4 4 4 4 4 4 4 4 4 4
Fire Hydrants 1,082 1,279 1,281 1,330 1,342 1,342 1,366 1,412 1,420 1,445
Storage Capacity 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000
Maximum Pumping Capacity 11,664,000 10,994,000 12,096,000 12,096,000 12,096,000 12,096,000 12,096,000 12,096,000 12,384,000 12,384,000
Sewer
Sanitary Sewer Mains (Miles)90 90 91 91 95 97 98 98 98 106
Storm Sewer Mains (Miles)78 81 82 84 84 86 86 88 89 91
Public Education Facilities:
Number of Elementary Schools 2 2 2 2 2 2 2 2 2 2
Number of Secondary Schools 2 2 2 2 2 2 2 2 2 2
Number of Special Education Schools 1 1 2 2 2 2 2 2 2 2
(Dakota County Technical College)
Sources: Various City departments.
Schedule 18
City of Rosemount
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years