HomeMy WebLinkAbout1997 Audit Report
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CITY OF ST. JOSEPH, MINNESOTA
Stearns County
AUDITED FINANCIAL STATEMENTS
As of
December 31, 1997
CITY OF ST. JOSEPH, MINNESOTA
TABLE OF CONTENTS
ELECTED OFFICIALS AND ADMINISTRA nON .............. . . . . . . . . . . . . 1
INDEPENDENT AUDITORS' REPORT ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
GENERAL PURPOSE FINANCIAL STATEMENTS -
Combined Balance Sheet - All Fund Types and Account Groups. . . . . . . . . . . . . . 4
Combined Statement of Revenues, Expenditures and Changes in Fund Balance -
All Governmental Fund Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Combined Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual - General and Special Revenue Fund Types . . . . . . . . . . . . ., 6
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types ................................. 7
Combined Statement of Cash Flows - All Proprietary Fund Types ............ 8
Notes to the Financial Statements ...................................... 9
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS -
General Fund -
Comparative Balance Sheets ....................................... 33
Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual .............................................. 34
Special Revenue Fund -
Combining Balance Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Debt Service Funds -
Combining Balance Sheet ......................................... 42
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Capital Project Funds -
Combining Balance Sheet ......................................... 44
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Enterprise Funds -
Combining Balance Sheet ......................................... 46
Combining Statement of Revenues, Expenses and Changes in Retained
Earnings .., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Combining Statement of Cash Flows ................................ 48
Statement of General Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
SUPPLEMENTARY SCHEDULE-
Schedule of Sources and Uses of Public Funds for Municipal Development
District No.1, A Tax Increment Financing District ....................... 50
CITY OF ST. JOSEPH, MINNESOTA
TABLE OF CONTENTS
(Continued)
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF THE GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS ........................,.. 51
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA
STATUTES . . . ... .. .. ........ . . ..... ......... ........ .... . . . . . .. . . . 53
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES. . . . . . . . . . . . . . . 54
CITY OF ST. JOSEPH, MINNESOTA
ELECTED OFFICIALS AND ADMINISTRATION
December 31, 1997
Term
City Council Position Expires
Ken Hiemenz Mayor January 7, 1999
Cory Ehlert Councilmember January 7, 1999
Bob Loso Councilmember January 7, 1999
Mary Niedenfuer Councilmember January 9, 2001
Ken Twit Councilmember January 9, 2001
Administration
Rachel Stapleton City Clerk!
Treasurer/
Administrator Appointed
Judy Weyrens Deputy Clerk Appointed
1
Alvin M. Kern
Duane N. DeWenter
Loren M. Viere
Gerald A. Stover
KDV Kern, DeWenter, Vi ere, Ltd. Keith W. Julson
Dwayne B. Dockendorf
David H. Hinnenkamp
Certified Public Accountants Christopher P. Shorba
INDEPE1\TDENT AUDITORS' REPORT
. March 5, 1998
Honorable Mayor and City Council
City ofSt. Joseph
St. Joseph, Minnesota
We have audited the general purpose financial statements ofthe City ofSt. Joseph, Minnesota as
of and for the year ended December 31, 1997, as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General ofthe United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the general purpose financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, in all material respects, the financial position ofthe City of St. Joseph,
Minnesota, as of December 31, 1997, and the results of its operations and changes in its fund
balances, and cash flows of its proprietary fund types, for the year then ended in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5,
1998 on our consideration ofthe City's internal control over financial reporting and tests of its
compliance with certain provisions of laws, regulations, contracts and grants.
2
220 Park Avenue South P.O. Box 1304 Sf. Cloud, MN 56302
320-251-7010 FAX 320-251-1784
City of St. Joseph
March 5, 1998
Page 2
Our audit was performed for the purpose of forming an opinion on the general purpose financial
statements ofthe City taken as a whole. The combining and individual fund financial statements
and supplementary information listed in the table of contents are presented for purposes of
additional analysis and are not a required part ofthe general purpose financial statements of City
of St. Joseph, Minnesota. Such information has been subjected to the auditing procedures
applied in the audit ofthe general purpose financial statements taken as a whole.
4/1,~~r#i
KERN, DEWENTER, VIERE, LTD.
3
CITY OF ST. JOSEPH, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1997
Governmental Fund Types
Special Debt Capital
ASSETS AND OTHER DEBITS General Revenue Service Projects
ASSETS:
Cash and Investments (Including Cash
Equivalents) $ 1,403,342 $ 64,751 $ 1,161,677 $ 210,065
Investments 0 0 0 0
Taxes Receivable -
Delinquent 6,504 0 2,046 0
Special Assessments Receivable -
Deferred 88,500 0 605,454 0
Delinquent 175 0 3,584 0
Accounts Receivable 18,769 0 6,126 2,502
Interest Receivable 50,344 0 0 0
Due from Other Governmental Units 81,572 0 25,531 25,000
Fixed Assets - Net 0 0 0 0
OTHER DEBITS:
Amount Available in Debt Service Funds 0 0 0 0
Amount to be Provided from Special
Assessments 0 0 0 0
Amount to be Provided for Compensated
Absences Payable 0 0 0 0
Amount to be Provided for Retirement of
General Long-Term Debt 0 0 0 0
TOTAL ASSETS AND OTHER DEBITS $ 1,649,206 $ 64,751 $ 1 ,804,418 $ 237,567
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES:
Cash Overdraft $ 0 $ 0 $ 0 $ 72,376
Accrued Liabilities 65,497 0 0 22,603
Due to Other Governmental Units 0 0 0 0
Contracts Payable 0 0 0 43,216
Deferred Revenue 95,179 0 611,084 0
Compensated Absences Payable 48,047 0 0 0
Bonds Payable 0 0 0 0
Total Liabilities 208,723 0 611,084 138,195
EQUITY AND OTHER CREDITS:
Investment in General Fixed Assets 0 0 0 0
Contributed Capital 0 0 0 0
Retained Earnings (Deficit) 0 0 0 0
Fund Balance -
Reserved 0 0 1,193,334 149,739
Unreserved -
Designated 963,006 0 0 0
Undesignated (Deficit) 477,477 64,751 0 (50,367)
Total Equity and Other Credits 1,440,483 64,7 51 1,193,334 99,372
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS $ 1,649,206 $ 64,751 $ 1,804,418 $ 237,567
The notes to the financial statements are an integral part of this statement.
Proprietary
Fund Types Account Groups
General General Totals
Fixed Long-Term (Memorandum Only)
Enterprise Assets Debt 1997 1996
$ 55,768 $ ° $ ° $ 2,895,603 $ 2,940,338
622,997 ° ° 622,997 °
° ° ° 8,550 5,575
° ° ° 693,954 759,737
° ° ° 3,759 2,022
93,775 ° ° 121,172 120,134
° ° ° 50,344 19,084
° ° ° 132,103 50,250
4,032,476 2,288,254 ° 6,320,730 5,719,128
° ° 1,193,334 1,193,334 915,065
° ° 609,038 609,038 648,889
° ° 49,897 49,897 49,757
° ° 2,652,628 2,652,628 1,831,046
$ 4,805,016 $ 2,288,254 $ 4,504,897 $ 15,354,109 $ 13,061,025
$ ° $ ° $ ° $ 72,376 $ 1,235
14,735 ° ° 102,835 116,805
6,484 ° ° 6,484 6,267
° ° ° 43,216 76,604
° ° ° 706,263 767,334
16,239 ° 49,897 114,183 108,093
° ° 4,455,000 4,455,000 3,395,000
37,458 ° 4,504,897 5,500,357 4,471,338
° 2,288,254 ° 2,288,254 1,568,027
4,831,186 ° ° 4,831,186 4,829,414
(63,628) ° ° (63,628) (88,225)
° ° ° 1,343,073 915,065
° ° ° 963,006 1,001,086
° ° ° 491,861 364,320
4,767,558 2,288,254 ° 9,853,752 8,589,687
$ 4,805,016 $ 2,288,254 $ 4,504,897 $ 15,354,109 $ 13,061,025
4
CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 1997
Governmental Fund Types
Special Debt
General Revenue Service
REVENUES:
General Property Taxes $ 286,847 $ 0 $ 107,675
Special Assessments 33,197 0 86,980
Licenses and Permits 53,028 0 0
Intergovernmental 575,861 0 221,534
Charges for Services 193,627 0 0
Fines 63,900 0 0
Miscellaneous 136,029 35,012 177,151
Total Revenues 1,342,489 35,012 593,340
EXPENDITURES:
Current -
General Government 239,491 0 0
Public Safety 561,744 0 0
Public Works 223,550 0 0
Culture and Recreation 136,449 0 0
Miscellaneous 367 0 7,200
Capital Outlay 0 0 0
Debt Service 0 0 403,095
Total Expenditures 1,161,601 0 410,295
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 180,888 35,012 183,045
OTHER FINANCING SOURCES (USES):
Capital Lease 0 0 0
Operating Transfers In 0 0 10,000
Operating Transfers Out (4,560) 0 0
Proceeds From the Sale of Bonds 0 0 85,224
Total Other Financing Sources (Uses) (4,560) 0 95,224
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPEl\TDITURES AND OTHER FINANCING USES 176,328 35,012 278,269
FUND BALANCE - January 1 1,264,155 29,739 915,065
FUND BALANCE - December 31 $ 1 ,440,483 $ 64,751 $ 1,193,334
The notes to the financial statements are an integral part of this statement.
Totals
Capital (Memorandum Only)
Projects 1997 1996
$ 0 $ 394,522 $ 272,951
0 120,177 260,297
0 53,028 49,009
25,000 822,395 694,635
0 193,627 195,174
0 63,900 63,240
41,898 390,090 243,765
66,898 2,037,739 1,779,071
0 239,491 243,716
0 561,744 527,948
0 223,550 217,400
0 136,449 106,625
0 7,567 2,288
1,179,564 1,179,564 2,052,630
0 403,095 653,545
1,179,564 2,751,460 3,804,152
(1,112,666) (713,721) (2,025,081)
0 0 27,679
4,560 14,560 38,829
0 (4,560) (28,829)
1,135,966 1,221,190 2,027,040
1,140,526 1,231,190 2,064,719
27,860 517,469 39,638
71,512 2,280,471 2,240,833
$ 99 ,3 72 $ 2,797 ,940 $ 2,280,471
5
CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31, 1997
General Fund
Over
(Under)
Budget Actual Budget
REVENUES:
General Property Taxes $ 289,550 $ 286,847 $ (2,703)
Special Assessments 25,000 33,197 8,197
Licenses and Permits 40,150 53,028 12,878
Intergovernmental 548,327 575,861 27,534
Charges for Services 185,108 193,627 8,519
Fines 64,100 63,900 (200)
Miscellaneous 51,555 136,029 84,474
Total Revenues 1,203,790 1,342,489 138,699
EXPENDITURES:
Current -
General Government 237,892 239,491 1,599
Public Safety 635,704 561,744 (73,960)
Public Works 282,602 223,550 (59,052)
Culture and Recreation 146,266 136,449 (9,817)
Miscellaneous 500 367 (133)
Total Expenditures 1,302,964 1,161,601 (141,363)
REVENUES OVER (UNDER) EXPENDITURES (99,174) 180,888 280,062
OTHER FINANCING USES:
Operating Transfers Out 0 (4,560) (4,560)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES $ (99,174) 176,328 $ 275,502
FUND BALANCE - January 1 1,264,155
FUND BALANCE - December 31 $ 1,440,483
The notes to the financial statements are an integral part of this statement.
Totals
Special Revenue Funds (Memorandum Only)
Over Over
(Under) (Under)
Budget Actual Budget Budget Actual Budget
$ 0 $ 0 $ 0 $ 289,550 $ 286,847 $ (2,703)
0 0 0 25,000 33,197 8,197
0 0 0 40,150 53,028 12,878
0 0 0 548,327 575,861 27,534
0 0 0 185,108 193,627 8,519
0 0 0 64,100 63,900 (200)
0 35,012 35,012 51,555 171,041 119,486
0 35,012 35,012 1,203,790 1,377,501 173,711
0 0 0 237,892 239,491 1,599
0 0 0 635,704 561,744 (73,960)
0 0 0 282,602 223,550 (59,052)
0 0 0 146,266 136,449 (9,817)
0 0 0 500 367 (133)
0 0 0 1,302,964 1,161,601 (141,363)
0 35,012 35,012 (99,174) 215,900 315,074
0 0 0 0 (4,560) (4,560)
$ 0 35,012 $ 35,012 $ (99,174) 211 ,340 $ 310,514
29,739 1,293,894
$ 64,751 $ 1,505,234
6
CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Totals
1997 1996
OPERATING REVENUES:
Charges for Services $ 446,641 $ 410,477
OPERATING EXPENSES:
Salaries and Related Taxes and Benefits 108,844 98,258
Utilities 24,780 21,300
Supplies 7,491 19,565
Sewer Use Rental 82,772 82,025
Postage 941 1,352
Repairs and Maintenance 13,483 3,986
Professional Fees 1,215 2,047
Fees and Tests 9,557 9,114
Dues and Subscriptions 658 501
Refuse Disposal 70,815 69,943
Depreciation 121,783 109,508
Insurance 7,255 5,000
Miscellaneous 960 227
Total Operating Expenses 450,554 422,826
OPERATING LOSS (3,913) (12,349)
NON-OPERATING REVENUES:
Interest 37,940 23,073
Other Revenues 570 1,523
Total Non-Operating Revenues 38,510 24,596
INCOME BEFORE OPERATING TRANSFERS 34,597 12,247
Operating Transfers Out (10,000) (10,000)
NET INCOME 24,597 2,247
RETAINED EARNINGS (DEFICIT) - January 1 (88,225) (90,472)
RET AIì\TED EARNINGS (DEFICIT) - December 31 $ (63,628) $ (88,225)
The notes to the financial statements are an integral part of this statement.
7
CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Totals
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Loss $ (3,913) $ (12,349)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Depreciation 121,783 109,508
Other Nòn-operating Revenues 570 1,523
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 8,611 (34,167)
Increase (Decrease) in Accrued Liabilities (2,004) (29,111)
Increase (Decrease) in Due to Other Governmental Units 217 (4,621)
Increase in Compensated Absences Payable (9) 2,047
Total Adjustments 129,168 45,179
Net Cash Provided by Operating Activities 125,255 32,830
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Transfers to Other Funds (10,000) (10,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Capital Expenditures (1,386) 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 37,940 23,073
Net Sale (Purchase) of Investments (622,997) 99,192
Net Cash Provided by Investing Activities (585,057) 122,265
Net Increase (Decrease) in Cash and Cash Equivalents (471,188) 145,095
Cash and Cash Equivalents, January 1 526,956 381,861
Cash and Cash Equivalents, December 31 $ 55,768 $ 526,956
Schedule of Noncash Capital Activities:
Contributed Capital $ 1,772 $ 0
The notes to the financial statements are an integral part of this statement.
8
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of St. Joseph, Minnesota, has a mayor-council form of government. A mayor and four
council members are elected by the voters of the City for two-year and four-year terms,
respectively.
The accounting policies of the City conform to generally accepted accounting principles as
applicable to governments. With respect to proprietary activities, the City has adopted GASB
No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other Governmental
Entities that use Proprietary Fund Accounting." The City has elected to apply all applicable
GASB pronouncements as well as Financial Accounting Standards Board (F ASB)
pronouncements, Accounting Principles Board (APB) Opinions and Accounting Research
Bulletins (ARB), issued on or before November 30, 1989 unless those pronouncements conflict
with or contradict GASB pronouncements. In addition, the City has elected not to apply F ASBs,
APBs and ARBs issued after November 30, 1989. The following is a summary of the City's
more significant accounting policies.
A. Financial Reporting Entity
In accordance with GASB Statement No. 14, The Financial Reporting Entity, the financial
statements present the City and its component units. The City includes all funds, account
groups, organizations, institutions, agencies, departments, and offices that are not legally
separate from such. Component units are legally separate organizations for which the elected
officials of the City are financially accountable and are included within the financial
statements of the City because of the significance of their operational or financial
relationships with the City.
The City is considered financially accountable for a component unit if it appoints a voting
majority of the organization's governing body and it is able to impose its will on the
organization by significantly influencing the programs, projects, activities, or level of
services performed or provided by the organization, or there is a potential for the organization
to provide specific financial benefits to, or impose specific financial burdens on, the City.
As a result of applying the component unit definition criteria above, the City of St. Joseph
has been defined in accordance with GASB Statement No. 14 and is presented in this report
as follows:
9
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Financial Reporting Entity (Continued)
Blended Component Unit - The St. Joseph Economic Development Authority (EDA) was
organized for the purpose of preserving and creating jobs, enhancing the tax base, and
promoting the general welfare ofthe people ofthe City of St. Joseph. The Authority is
governed by a five member board consisting of members of the City Council. The EDA is
included as a blended component unit of the City because the EDA is financially accountable
to the City, and the Authority provides services almost entirely for the City. The St. Joseph
ED A is included as a department in the City's general fund and separate financial statements
are not prepared for the EDA.
B. Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of
which is considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues and expenditures or expenses, as appropriate. Government resources are
allocated to and accounted for in individual funds based upon the purposes for which they are
to be spent and the means by which expending activities are controlled. The various funds
are grouped, in the financial statements in this report, into five generic fund types and two
broad fund categories, described below.
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources
(other than expendable trusts or major capital projects) that are legally restricted to
expenditures for specified purposes. The City has four Special Revenue Funds.
Debt Service Funds are used to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest, and related costs. The City has
seven Debt Service Funds.
Capital Projects Funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by
enterprise funds). The City has five Capital Projects Funds.
10
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Fund Accounting (Continued)
Proprietary Funds
Enterprise Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises--where the intent of the governing bodyis
that the costs (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered through user charges; or
(b) where the governing body has decided that periodic detennination of revenues earned,
expenses incurred, or net income is appropriate for capital maintenance, public policy,
management control, accountability, or other purposes. The City maintains Refuse,
Water and Sewer Enterprise Funds.
C. Fixed Assets and Long- Tenn Liabilities
The accounting and reporting treatment applied to the fixed assets and long-tenn liabilities
associated with a fund are detennined by its measurement focus. All governmental funds are
accounted for on a spending or "fmancial flow" measurement focus. This means that only
< current assets and current liabilities are generally included on their balance sheets. Their
reported fund balance (net current assets) is considered a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of available spendable
resources during a period.
Fixed assets used in governmental fund type operations (general fixed assets) are accounted
for in the General Fixed Assets Account Group, rather than in governmental funds. Public
domain ("infrastructure") general fixed assets consisting of certain improvements other than
buildings, including roads, curbs and gutters, streets and sidewalks, are not capitalized by the
City. No depreciation has been provided on general fixed assets.
All fixed assets are valued at their historical cost or estimated historical cost if actual
historical cost is not available. Donated fixed assets are valued at their estimated fair value
on the date donated.
Long-tenn liabilities expected to be financed from governmental funds are accounted for in
the General Long-Tenn Debt Account Group, not in the governmental funds.
11
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Fixed Assets and Long-Term Liabilities (Continued)
The two account groups are not "funds". They are concerned only with the measurement of
financial position. They are not involved with measurement of results of operations.
Because of their spending measurement focus, expenditure recognition for governmental
fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do
not affect net current assets, such long-term amounts are not recognized as governmental
fund type expenditures or fund liabilities. They are instead reported as liabilities in the
General Long-Term Debt Account Group.
All proprietary funds are accounted for on a flow of economic resources measurement focus.
This means that all assets and all liabilities (whether current or noncurrent) associated with
the funds' activity are included on their balance sheets. Proprietary fund type operating
statements present increases (revenues) and decreases (expenses) in net total assets.
Major outlays for capital assets and improvements are capitalized in proprietary funds as
projects are constructed. Interest incurred during the construction phase of proprietary fund.
fixed assets is reflected in the capitalized value of the asset constructed. Capital assets
constructed in governmental funds for proprietary funds are recorded as contributed capital.
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an
expense against their operations. Accumulated depreciation is reported on proprietary fund
balance sheets. Depreciation has been provided over the assets' estimated useful lives, which
range from five to fifty years, using the straight-line method. Depreciation expense for the
years ended December 31, 1997 and 1996 is $ 121,783 and $ 109,508, respectively.
D. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in
the accounts and reported in the financial statements. Basis of accounting relates to the
timing of the measurement made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified accrual basis of accounting, in
which revenues are recognized when they become measurable and available as net current
assets.
The more significant revenues which have been accrued are intergovernmental revenues and
interest earnings.
12
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Basis of Accounting (Continued)
Expenditures are generally recognized in the modified accrual basis of accounting when the
related fund liability is incurred. Exceptions to this general rule include sick pay and
principal and interest on general long-term debt, which are recognized when due.
All proprietary funds are accounted for using the accrual basis of accounting; revenues are
recognized when they are earned and expenses are recognized when they are incurred.
E. Budgetary Data
The City Council adopts an annual budget. The amounts shown in the financial statements as
"budget" represent the original budgeted amount and all revisions made during the year. The
City follows these procedures in establishing the budgetary data reflected in the financial
statements.
1. In August of each year, the City Administrator submits to the City Council a proposed
operating budget for the fiscal year commencing the following January 1. The operating
budget includes proposed expenditures and the means of financing them for the upcoming
year.
2. Public hearings are conducted to obtain taxpayer comment.
3. Prior to December 31, the budget is legally enacted through passage of a resolution.
4. Formal budgetary integration is employed as a management control device during the
year for the General and Special Revenue Funds. Formal budgetary integration is not
employed for Debt Service Funds because effective budgetary control is alternatively
achieved through general obligation bond indenture provisions. Budgetary control for
Capital Projects Funds is accomplished through the use of project controls.
5. The Budgets for the General and Special Revenue Funds are adopted on a basis consistent
with generally accepted accounting principles (GAAP).
F. Encumbrances
Encumbrances represent outstanding purchase orders and unfulfilled commitments that are
issued to outside vendors and budgeted in the current year but do not include amounts that
are set up as liabilities, amounts for personal services to be performed by City employees and
purchase orders applicable to the subsequent year's budget.
As of December 31, 1997, no outstanding encumbrances existed.
13
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Cash and Investments (Including Cash Equivalents) (See Note 3)
Cash balances ITom aU funds are combined and invested to the extent available in authorized
investments. Earnings ITom such investments are allocated to the respective funds on the
basis of applicable cash balance participation by each fund. Investments are carried at market
value.
For purposes ofthe Statement of Cash Flows of proprietary fund types, cash equivalents are
defined as short-term, highly liquid investments that are both:
a. readily convertible to known amounts of cash, or
b. so near their maturity that they present insignificant risk of changes in value because
of changes in interest rates.
The City's policy considers cash equivalents to be those that meet the above criteria and have
original maturities of three months or less.
H. Taxes Receivable
Delinquent taxes receivable represent the past six years of uncollected tax levies.
1. Special Assessments Receivable
Delinquent special assessments represent the past six years of uncollected special
assessments.
Deferred special assessments represent the principal portion of those assessments to property
owners for improvements made by the City. These assessments are made at various times by
City resolution and are collectible over periods ranging ITom ten to thirty years and bear
annual interest of 7 percent to 9 percent and are to be received in 1998 and years thereafter.
J. Deferred Revenue
Deferred revenue represents delinquent taxes and deferred and delinquent assessments
receivable. This revenue is deferred until it is measurable and available as net current assets.
14
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Compensated Absences
The City compensates employees who leave City service in good standing for all earned,
unused vacation. In addition, employees are compensated for unused sick leave (up to a
maximum of 90 days) at 50% of the current regular rate of pay, provided the City's notice of
termination policy has been complied with.
L. Fund Equity
Fund equity is divided into sections as follows:
- Contributed capital represents fixed assets purchased by other funds and contributed to
the enterprise funds.
- Investment in General Fixed Assets represents the City's equity in general fixed assets.
- Retained earnings of enterprise funds are subdivided as follows:
.': The reserved account represents the portion of retained earnings set aside for specific
purposes.
Unreserved retained earnings is available for expending in future periods.
- Fund balance accounts are subdivided as follows:
Reserved accounts indicate the portion of fund balance which has been reserved for a
specific purpose.
Umeserved, designated accounts indicate the portion of fund balance which has been
designated for a specific purpose.
The unreserved, undesignated account is the portion of fund balance which is
available for budgeting and expending in future periods.
15
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Revenues. Expenditures and Expenses
1. Revenues
Property taxes and special assessment principal and interest are recognized as revenue
when measurable and available. Portions oftaxes paid by the State in the form of HAC A
and other tax credits are included in intergovernmental revenue.
Intergovernmental revenues are reported under the legal and contractual requirements of
the individual programs.
Licenses and permits, charges for services, fines and forfeits, and miscellaneous revenues
(except investment earnings) are recorded as revenues when received in cash because
they are generally not measurable until then. Investment earnings are recorded when
earned because they are measurable and available.
2. Property Tax Collection Calendar
The City levies its property tax for the subsequent year during the month of December.
The property tax is recorded as revenue when it becomes measurable and available.
Stearns County is the collecting agency for the levy and remits the collections to the City
three times a year. Taxes not collected as of December 31 each year are shown as
delinquent taxes receivable.
December 28 is the last day the City can certify a tax levy to the County Auditor for
collection the following year.
The County Auditor makes up the tax list for all taxable property in the City, applying the
applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax
for each property. The County Auditor also collects all special assessments, except for
certain prepayments paid directly to the City.
The County Auditor turns over a list oftaxes and special assessments to be collected on
each parcel of property to the County Treasurer in January of each year.
The County Treasurer collects all taxes, and all special assessments, except as noted
above. The County Treasurer is required to mail copies of all personal property tax
statements by April 15, and copies of all real estate tax statements by April 15, of each
year.
16
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Revenues. Expenditures and Expenses (Continued)
2. Property Tax Collection Calendar (Continued)
Property owners are required to pay one-half of their real estate taxes due by May 15 and
the balance by October 15. If taxes due May 15 are not paid on time, a penalty of3% is
assessed on homesteaded property, and 7% on non-homesteaded property. An additional
1 % penalty is added each month the taxes remain unpaid, until October 15. If the taxes
due May 15 are not paid by October 15, a 2% penalty per month is added to homesteaded
property and 4% per month to non-homesteaded property until January 1.
If the taxes are not paid by January 1, further penalties are added. Penalties and interest
apply to both taxes and special assessments. There are some exceptions to the above
penalties, but they are not material.
Within 30 days after the tax settlement date, the County Treasurer is required to pay 70%
of the estimated collections of taxes and special assessments to the City Treasurer. The
County Treasurer must pay the balance to the City Treasurer within 60 days after
settlement, provided that after 45 days interest accrues at the rate of 8% per armum.
3. Expenditures
Expenditure recognition for governmental fund types includes only amounts represented
by current liabilities. Since noncurrent liabilities do not affect net current assets, they are
not recognized as governmental fund expenditures or fund liabilities. They are reported
as liabilities in the General Long-Term Debt Account Group.
4. Expenses
Enterprise funds recognize expenses when they are incurred.
N. Interfund Transactions
Quasi-external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures or expenses initially
made from it that are properly applicable to another fund are recorded as expenditures or
expenses in the fund that is reimbursed.
17
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Interfund Transactions (Continued)
All other interfund transactions, except quasi-external and reimbursements, are reported as
transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual
equity transfers. All other interfund transfers are reported as operating transfers.
O. Total Columns on General Purpose Statements
Total columns on the general purpose financial statements are captioned "memorandum
only" to indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations, or cash flows in conformity
with generally accepted accounting principles. Interfund eliminations have not been made in
the aggregation of these data.
P. Comparative Data
Comparative total data for the prior year have been presented in the accompanying financial
statements in order to provide an understanding of changes in the City's financial position
and operations. However, prior year totals by fund type have not been presented in each of
the statements since their inclusion would make the statements unduly complex and difficult
to read.
Comparative data have been restated to reflect reclassifications.
Q. Use of Estimates
The preparation of general purpose financial statements in conformity with generally
accepted accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those
estimates.
18
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 2 - STEW ARDSHIP. COMPLIANCE AND ACCOUNT ABILITY
A. Fund Deficits
The following funds have deficit fund balance/retained earnings at December 31, 1997:
Capital Projects Funds -
Klinefelter Walking Trail $ 41,099
1998 Street Improvements 9,268
Enterprise Fund -
Sewer 293,802
These deficits will be eliminated by future revenues, user charges or transfers from other
funds.
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets
1. Cash and Investments (Including Cash Equivalents)
Cash balances of the City's funds are combined (pooled) and invested to the extent
available in various investments authorized by Minnesota State Statutes. Each fund's
portion of this pool (or pools) is displayed on the fmancial statements as "cash and
investments (including cash equivalents)." For purposes of identifying risk of investing
public funds, the balances and related restrictions are summarized below:
a. Deposits - Minnesota Statutes require that all deposits with financial institutions must
be collateralized in an amount equal to 110% of deposits in excess of FDIC insurance
(140% if collateralized with notes secured by first mortgages).
Category 1 - Deposits covered by Federal Depository Insurance (FDIC) and those
deposits collateralized with securities held by the City or by its agent in
the City's name.
Category 2 - Collateralized with securities held by the pledging institutions trust
department or agent in the District's name.
Category 3 - Deposits which are not insured or collateralized; or those deposits where
collateral assignment has not been perfected.
19
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
1. Cash and Investments (Including Cash Equivalents) (Continued)
a. Deposits - (Continued)
Category Bank Carrying
1 -L 3 Balance Amount
Bank Accounts $ 100,000 $ 0 $ 29,406 $ 129,406 $ 107,261
Certificates of
Deposit 0 -º 1.235.529 1.235.529 1,235.529
Total Deposits $ 100.000 $ 0 $ 1.264.935 $ 1.364.935 $ 1.342.790
b. Investments - Minnesota State Statutes authorize the City to invest in obligations of
the U.S. Treasury, agencies, and instrumentalities, shares of investment companies
whose only investments are in the forementioned securities, obligations of the State of
Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and
reverse repurchase agreements, and commercial paper of the highest quality with a
maturity of no longer than 270 days. Investments held by the City at year end
classified as to credit risk are as follows:
Category 1 - Insured or registered, or securities held by the City's agent in the City's
name.
Category 2 - Uninsured and unregistered, with securities held by the counterparty's
trust department or agent in the City's name.
Category 3 - Uninsured and unregistered, with securities held by the counterparty or
by its trust department or agent but not in the City's name.
Category Carrying Market
1 -'L -L Amount Value
U.S. Government and
Federal Agency Notes
and Bonds $ 1,108,659 $0 $0 $ 1,108,659 $ 1,108,659
Negotiable Certificates
of Deposit 822.270 -º -º 822.270 822.270
Total Investments $ 1.930,929 $ 0 $ 0 1,930,929 1,930,929
20
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
1. Cash and Investments (Including Cash Equivalents) (Continued)
b. Investments - (Continued)
Category Carrying Market
1 -L Ì- Amount Value
Unclassified as to Risk:
Brokered Money Market
Mutual Funds $ 172,285 $ 172,285
Total Deposits (See
Note 3 A. La.) 1,342,790 1,342,790
Petty Cash 220 220
Total Cash and Investments
(Including Cash Equivalents) $ 3.446.224 $ 3.446.224
The carrying amount is classified on the combined balance sheet as follows:
Carrying
Amount
Cash and Investments (Including Cash
Equivalents) $ 2,895,603
Investments 622,997
Cash Overdraft (72.376)
Total $ 3.446.224
2. Due from Other Governmental Units
The following is a summary of due from other governmental units at December 31, 1997:
St. Joseph State of Steams
Township Minnesota County Total
General Fund -
Property Taxes $ 0 $ 0 $ 73,606 $ 73,606
Federal Grants 0 7.966 0 7.966
Total General Fund 0 7,966 73,606 81,572
21
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
2. Due from Other Governmental Units (Continued)
St. Joseph State of Stearns
Township Minnesota County Total
Debt Service Funds -
G.O. Improvement Bonds of 1993 -
Property Taxes $ 0 $ 0 $ 4,270 $ 4,270
G.O. Improvement Bonds of 1996 -
Property Taxes 0 0 7,236 7,236
Special Assessments 14.025 0 0 14.025
Total Debt Service 14,025 0 11,506 25,531
Capital Projects Funds -
Klinefelter Walking Trail
State Grant 0 25.000 0 25.000
Total Capital Projects 0 25.000 0 25.000
Total $ 14.025 $ 32.966 $ 85.112 $ 132.103
3. Fixed Assets
A summary of changes in general fixed assets follows:
Balance Balance
1-1-97 Additions Disposals 12-31-97
Land $ 167,426 $ 643 $ 0 $ 168,069
Buildings 288,912 513,323 4,501 797,734
Improvements Other than
Buildings 189,183 105,297 0 294,480
Machinery and Equipment 551,662 64,155 1,076 614,741
Office Furniture 61,632 30,481 1,379 90,734
Motor Vehicles 127,465 0 0 127,465
Other Equipment 181.747 17.274 3.990 195.031
Total $ 1.568.027 $ 731,173 $ 10.946 $ 2.288.254
22
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
3. Fixed Assets (Continued)
A summary of Enterprise Fund fixed assets at December 31,1997, is as follows:
Water Sewer
Fund Fund Total
Land and Land Improvements $ 12,996 $ 4,940 $ 17,936
Treatment Plant and Lines 1,442,544 1,874,045 3,316,589
Buildings 0 517,983 517,983
Water Storage Facility 1,236,543 0 1,236,543
Machinery and Equipment 37.434 132.045 169.479
Total Cost 2,729,517 2,529,013 5,258,530
Less: Accumulated Depreciation (348.327) (877.727) (1.226.054)
Net Fixed Assets $ 2.381.190 $ 1.651.286 $ 4.032.476
B. Liabilities
1. Defined Benefit Pension Plans - Statewide
A. Plan Description
All full-time and certain part-time employees of the City of St. Joseph are covered by
defined benefit plans administered by the Public Employees Retirement Association
of Minnesota (PERA). PERA administers the Public Employees Retirement Fund
(PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-
sharing, multiple-employer retirement plans. These plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated
Plan members are covered by Social Security and Basic Plan members are not. All
new members must participate in the Coordinated Plan. All police officers, fire-
fighters and peace officers who qualify for membership by statute are covered by the
PEPFF.
23
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
A. Plan Description (Continued)
PERA provides retirement benefits as well as disability benefits to members, and
benefits to survivors upon death of eligible members. Benefits are established by
State Statute, and vest after three years of credited service. The defined retirement
benefits are based on a member's highest average salary for any five successive years
of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan
members. The retiring member receives the higher of a step-rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Basic Plan member who retires before July 1, 1997 is 2
percent of average salary for each of the first 10 years of service and 2.5 percent for
each remaining year. The annuity accrual rate for Basic members who retire on or
after July 1, 1997 is 2.2 percent of average salary for each of the first 10 years of
service and 2.7 percent for each remaining year. For a Coordinated Plan member who
retires before July 1, 1997, the annuity accrual rate is 1 percent of average salary for
each of the first 10 years and 1.5 percent for each remaining year. For Coordinated
members who retire on or after July 1, 1997, the annuity accrual rates increase by 0.2
percent (to 1.2 percent of average salary for each ofthe first 10 years and 1.7 percent
for each remaining year). Under Method 2, the annuity accrual rate is 2.5 percent of
average salary for Basic Plan members and 1.5 percent for Coordinated Plan members
who retire before July 1, 1997. Annuity accrual rates increase 0.2 percent for
members who retire on or after July 1, 1997. For PEPFF members, the annuity
accrual rate is 2.65 percent for each year of service for members retiring before July
1, 1997. Effective July 1, 1997, the annuity accrual rate is increased to 3.0 percent.
For all PEPFF members and for PERF members whose annuity is calculated using
Method 1, a full annuity is available when age plus years of service equal 90. A
reduced retirement annuity is also available to eligible members seeking early
retirement.
There are different types of annuities available to members upon retirement. A
normal annuity is a lifetime annuity that ceases upon the death of the retiree--no
survivor annuity is payable. There are also various types of joint and survivor annuity
options available which will reduce the monthly normal annuity amount, because the
annuity is payable over joint lives. Members may also leave their contributions in the
fund upon termination of public service in order to qualify for a deferred annuity at
retirement age. Refunds of contributions are available at any time to members who
leave public service, but before retirement benefits begin.
24
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
A. Plan Description (Continued)
The benefit provisions stated in the previous paragraphs of this section are current
provisions and apply to active plan participants. Vested, terminated employees who
are entitled to benefits but are not receiving them yet are bound by the provisions in
effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements
and required supplementary information for PERF and PEPFP. That report may be
obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102
or by calling (612) 296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. These statutes are established and amended by the state legislature.
The City makes annual contributions to the pension plans equal to the amount
required by state statutes. PERF Basic Plan members and Coordinated Plan members
are required to contribute 8.23 percent and 4.23 percent, respectively, of their annual
covered salary. PEPFF members are required to contribute 7.60 percent of their
annual covered salary. The City of St. Joseph is required to contribute the following
percentages of annual covered payroll: 10.73 percent for Basic Plan PERF members,
4.48 percent for Coordinated Plan PERF members, and 11.40 percent for PEPFP
members. The City's contributions to the Public Employees Retirement Fund for the
years ending December 31, 1997, 1996, and 1995 were $ 10,798, $ 10,028, and
$ 10,491, respectively. The City's contributions to the Public Employees Police and
Fire Fund for the years ending December 31, 1997, 1996, and 1995 were $ 24,388,
$ 22,919, and $ 20,335, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
2S
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
2. Defined Contribution - Statewide
The City provides pension benefits for its elected local government officials through a
defined contribution plan administered by the Public Employees Retirement Association
(PERA). The Public Employees Defined Contribution Plan (PEDCP) is a multi-employer
deferred compensation plan. Elected officials who are covered by a public or private
pension plan because of their employment are not eligible to participate in the PEDCP.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings.
Minnesota Statutes, Chapter 353D.03 requires that both the elected local government
official and the City contribute an amount equal to 5% of the elected local government
official's salary. There is no vesting period required to receive benefits in the PEDCP.
The City's total payroll in the year 1997 was $ 584,048. The City's contributions were
calculated using the base salary amount of$ 27,880. Both the City and the elected local
government official made the required 5% contribution, amounting to $ 1,394 from each
source, or $ 2,788 in total.
As of June 30, 1997, and for the fiscal year then ended, PERA held no securities issued
by the City or other related parties.
3. Deferred Revenue
Deferred revenue at December 31, 1997, consisted of:
Debt
General Service Total
Taxes Receivable -
Delinquent $ 6,504 $ 2,046 $ 8,550
Assessments Receivable -
Deferred 88,500 605,454 693,954
Delinquent 175 3.584 3.759
Total $ 95.179 $ 611.084 $ 706.263
26
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
4. Bonds Payable
The following is a summary of bond transactions for the year ended December 31, 1997:
General
Obligation General
General Special Obligation
Obligation Assessment Revenue Total
Bonds Payable -
January 1, 1997 $ 0 $ 2,230,000 $ 1,165,000 $ 3,395,000
Bonds Issued 1,235,000 0 0 1,235,000
Bonds Retired 0 (120.000) (55.000) (175.000)
Bonds Payable -
December 31, 1997 $ 1.235.000 $ 2.110.000 $ 1.110.000 $ 4.455.000
i! Bonds outstanding at December 31, 1997, comprise the following issues:
General Obligation Bonds:
$ 1,235,000 General Obligation Bonds of 1997
due in annual installments of $ 35,000 to $ 100,000
through December 1, 2017, interest at 4.00 to 5.75
percent $ 1,235,000
General Obligation Special Assessment Bonds:
$ 200,000 General Obligation Improvement Bonds of
1992 due in annual installments of$ 10,000 to S 20,000
through December 1, 2007, interest at 4.60 to 6.40 percent 160,000
$ 365,000 General Obligation Improvement Bonds of 1992 -
Series B due in annual installments of$ 15,000 to $ 35,000
through December 1,2008, interest at 4.50 to 6.60 percent 295,000
27
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
4. Bonds Payable (Continued)
General Obligation Special Assessment Bonds: (Continued)
$ 550,000 General Obligation Improvement Bonds of 1993
due in annual installments of $ 25,000 to $ 50,000 through
December 1,2008, interest at 3.00 to 5.30 percent $ 435,000
$ 1,280,000 General Obligation Improvement Bonds of 1996
due in annual installments of $ 60,000 to $ 120,000 through
December 1,2011; interest at 4.30 to 5.90 percent 1 ,220.000
Total General Obligation Special Assessment Bonds 2,110,000
General Obligation Revenue Bonds:
$ 475,000 General Obligation Water Revenue Bonds of 1992
due in annual installments of $ 30,000 to $ 50,000 through
December 1,2005, interest at 4.00 to 6.00 percent 350,000
$ 780,000 General Obligation Water Revenue Bonds of 1996
due in annual installments of$ 20,000 to $ 70,000 through
December 1, 2016; interest at 4.30 to 6.00 percent 760.000
Total General Obligation Revenue Bonds 1.110.000
TOTAL BONDS PAYABLE $ 4,455.000
The annual requirements to amortize all bonded debt outstanding as of December 31,
1997, including interest payments of$ 2,339,745 are:
28
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
4. Bonds Payable (Continued)
General
Obligation General
Year Ending General Special Obligation
December 31. Obligation Assessment Revenue Total
1998 $ 99,408 $ 239,430 $ 117,467 $ 456,305
1999 98,007 243,570 119,798 461,375
2000 101,555 242,015 121,777 465,347
2001 99,835 240,025 123,418 463,278
2002 103,055 237,575 119,672 460,302
2003-2007 511,615 1,196,158 493,705 2,201,478
2008-2012 518,675 595,860 353,500 1,468,035
2013 and Beyond 529.625 0 289.000 818.625
Totals $ 2.061.775 $ 2.994.633 $ 1.738.337 $ 6.794.745
5. Capital Lease
The City entered into a lease agreement during 1996 as lessee for financing the
acquisition of a skid loader. The agreement requires monthly payments of $ 346 a month
through November, 1999. The future minimum lease obligations as of December 31,
1997 follows:
Year Ended December 31
1998 $4,153
1999 3.807
Total Minimum Lease Payments 7,960
Less: Amount Representing Interest (736)
Present Value of Minimum
Lease Payments $ 7.224
29
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fund Equity
Fund equity balances are classified as follows to reflect the limitations and restrictions of the
respective funds:
1. Fund Balance
a. Reserved Fund Balance -
Reserved fund balance of$ 1,189,780 represents amounts legally reserved for future
debt service payments.
b. Unreserved fund balance is comprised of the following:
Special Capital
General Revenue Projects Total
Designated for Fire $ 468,806 $ 0 $ 0 $ 468,806
Designated for Fire Hall 4,978 0 0 4,978
Designated for Capital
Expenditures 64,477 0 102,926 167,403
Designated for Debt Service 174,745 0 0 174,745
Designated for Working Capital 250,000 0 0 250,000
Undesignated 477.477 64.751 0 542.228
Total Unreserved
Fund Balance $ 1 .440.483 $ 64.751 $ 102.926 $ 1.608.160
2. Contributed Capital
Contributed capital in the Enterprise Funds represents fixed assets which were purchased
by other funds and transferred to the Enterprise Funds. Contributed capital is as follows:
Balance, December 31, 1996 $ 4,829,414
Capital Contributed in 1997 1.772
Balance, December 31, 1997 $ 4.831.186
30
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 4 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains three Enterprise Funds which provide refuse, water and sewer services.
Segment information for the year ended December 31,1997, is:
Refuse Water Sewer
Fund Fund Fund Total
Operating Revenues $ 94,744 $ 154,816 $ 197,081 $ 446,641
Depreciation 0 52,897 68,886 121,783
Operating Income (Loss) 21,960 1,142 (27,015) (3,913)
Operating Transfers Out 10,000 0 0 10,000
Net Income 16,170 4,576 3,851 24,597
Contributed Capital 0 2,318,285 2,512,901 4,831,186
Fixed Assets -
Acquisitions 0 693 693 1,386
Contributed Additions 0 1,772 0 1,772
Net Working Capital 79,826 87,443 567,813 735,082
Total Assets 80,106 2,486,544 2,238,366 4,805,016
Total Equity 79,826 2,468,633 2,219,099 4,767,558
"
NOTE 5 - TAX INCREMENT DISTRICT
The City of St. Joseph is the administering authority for the following tax increment financing
district:
Name of District: Tax Increment District No.1
Type of District: Economic Development
Authorizing Law: Minnesota Statutes Sections 469.124 to 469.179
Established: December 15, 1994
Duration of District: No later than November 14,2005
Original Tax Capacity $ 12,177
Current Net Tax Capacity 14.804
Captured Tax Capacity
Retained by the City S 2.627
The City of St. Joseph has received $ 6,268 in tax increments through December 31, 1997. The
City believes a refund of the increments to the County will be necessary in the future due to
unexpected events. The tax increment plan requires certain improvements be made by
December 15,1998. As of December 31,1997, no improvements have been made.
31
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 6 - COMMITMENTS
The City has entered into contracts for certain projects, as follows:
Expended
Project Through
Vendor and Project Authorization December 31. 1997 Commitment
Hagemeister and Mack,
Architects, Inc. - Fire Hall $ 964,366 $ 954,972 $ 9,394
NOTE 7 - RlSK MANAGEMENT
The City is exposed to various risk of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. In order to protect
against these risks of loss, the City purchases commercial insurance through the League of
Minnesota Cities Insurance Trust, a public entity risk pool. This pool currently operates
common risk management and insurance programs for municipal entities. The City pays an
annual premium to the League for its insurance coverage. The League of Minnesota Cities
Insurance Trust is self-sustaining through commercial companies for excess claims. The City is
covered through the pool for any claims incurred but unreported, however, retains risk for the
deductible portion of its insurance policies. The amounts of these deductibles are considered
immaterial to the financial statements.
The City's workers compensation insurance policy is retrospectively rated. With this type of
policy, final premiums are determined after loss experience, workers compensation rates and
salaries for the year are known. The final premium adjustment was recorded in the year the
adjustment was made.
During the year ended December 31, 1997, there were no significant reductions in insurance
coverage from the prior year. Settled claims have not exceeded the City's commercial coverage
in any of the past three years.
32
CITY OF ST. JOSEPH, MINNESOTA
THE GENERAL FUND
The General Fund accounts for all revenues and expenditures of a governmental unit which are
not accounted for in other funds, and it is usually the largest and most important accounting
activity for state and local governments. It normally receives a greater variety and number of
taxes and other general revenues than any other fund. This fund has flowing into it such
revenues as general property taxes, licenses and permits, fines and penalties, rents, charges for
current services, state-shared taxes, and interest earnings. The fund's resources also finance a
wider range of activities than any other fund. Most of the current operations of governmental
units will be financed from this fund.
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
COMP ARA TIVE BALANCE SHEETS
December 31
1997 1996
ASSETS
Cash and Investments $ 1,403,342 $ 1,299,028
Taxes Receivable -
Delinquent 6,504 5,028
Special Assessments Receivable-
Deferred 88,500 112,442
Delinquent 175 428
Accounts Receivable 18,769 11,468
Interest Receivable 50,344 19,084
Due from Other Governmental Units 81,572 42,442
TOTAL ASSETS $ 1,649,206 $ 1,489,920
LIABILITIES AND FUND BALANCE
Liabilities:
Accrued Liabilities $ 65,497 $ 65,779
Deferred Revenue 95,179 117,898
Compensated Absences Payable 48,047 42,088
Total Liabilities 208,723 225,765
Fund Balance:
Unreserved -
Designated 963,006 929,574
Undesignated 477,477 334,581
Total Fund Balance 1,440,483 1,264,155
TOTAL LIABILITIES AND FUND BALANCE $ 1,649,206 $ 1,489,920
33
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1997
(With Comparative Actual Totals for the Year Ended December 31, 1996)
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
General Property Tax $ 289,550 $ 283,658 $ (5,892) $ 241,688
Tax Increments 0 3,189 3,189 3,079
Special Assessments 25,000 33,197 8,197 28,140
Licenses and Permits 40,150 53,028 12,878 49,009
Intergovernmental -
Federal Grants 19,557 22,647 3,090 35,501
State -
Local Government Aid 429,375 428,293 . (1,082) 408,623
HACA 60,691 61,657 / 966 61,329
Local Performance Aid 4,853 4,853 0 0
Police Aid 29,451 20,109 (9,342) 26,682
Fire Aid 500 22,030 21,530 21,001
Other 0 11,542 11,542 0
County Grants 3,900 4,730 830 4,300
Total Intergovernmental 548,327 575,861 27,534 557,436
Charges for Services -
General Government 2,750 13,395 10,645 15,441
Public Safety - Fire 168,858 166,550 (2,308) 166,935
Culture and Recreation 13,500 13,682 182 12,798
Total Charges for Services 185,108 193,627 8,519 195,174
Fines 64,100 63,900 (200) 63,240
Miscellaneous -
Sale of Surplus Property 0 5,144 5,144 300
Interest 32,000 78,633 46,633 43,418
Refunds and Reimbursements 5,000 20,016 15,016 10,607
Contributions 14,555 32,236 17,681 24,584
Total Miscellaneous 51,555 136,029 84,474 78,909
Total Revenues 1,203,790 1,342,489 138,699 1,216,675
34
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1997
(With Comparative Actual Totals for the Year Ended December 31, 1996)
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPEND ITURES:
General Government:
Mayor and Council -
Salaries and Benefits $ 22,555 $ 23,286 $ 731 $ 18,944
Supplies 650 641 (9) 182
Travel and Conferences 1,415 1,433 18 1,348
Advertising 1,750 1,893 143 731
Insurance 550 468 (82) 1,050
Dues and Subscriptions 14,000 15,782 1,782 15,265
Other 350 332 (18) 732
Legislative COnID1ittees -
Legislative Bodies 2,500 4,035 1,535 2,415
Other 1,900 1,626 (274) 1,715
Elections -
Salaries and Benefits 216 0 (216) 3,691
Supplies 50 0 (50) 113
Professional Services 300 0 (300) 3,558
Other 1,050 9/-: r; ( (1,050) 2,850
Assessing - ____---/ :-¡0F! '0
Salaries and Benefits 9,689 9,279 (410) 8,980
Supplies 150 105 (45) 0
Travel and Conferences 100 0 (100) 95
Other 275 176 (99) 160
Administration -
Salaries and Benefits 62,838 67,260 4,422 68,806
Supplies and Maintenance 7,700 6,038 (1,662) 3,394
Professional Services 0 0 0 775
Telephone 3,500 2,828 (672) 2,607
Travel and Conferences 800 538 (262) 781
Insurance 1,500 1,360 (140) 1,660
Capital Expenditures 8,660 7,054 (1,606) 2,226
Other 4,050 2,337 (1,713) 2,120
Accounting -
Salaries and Benefits 42,357 43,650 1,293 43,673
Supplies 1,600 1,701 101 1,844
Travel and Conferences 400 280 (120) 396
Other 900 591 (309) 926
Independent Auditing -
Services and Charges 8,000 7,550 (450) 7,000
Legal -
Services and Charges 15,000 7,027 (7,973) 11,043
35
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1997
(With Comparative Actual Totals for the Year Ended December 31, 1996)
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
General Government: (Continued)
Planning and Zoning -
Annexation Fee $ 500 $ 908 $ 408 $ 215
Consolidation Study 2,000 621 (1,379) 2,607
Star City Program 0 0 0 3,348
General Government Buildings -
Salaries and Benefits 563 796 233 94
Supplies and Maintenance 2,800 2,757 (43) 1,209
Professional Services 1,750 1,523 (227) 1,661
Insurance 1,700 1,020 (680) 1,200
Utilities 8,820 7,630 (1,190) 6,677
Capital Expenditures 4,000 561 (3,439) 16,871
Other 954 0 (954) 754
Cable Access 0 16,405 16,405 0
Total General Government. 237,892 239,491 1,599 243,716
Public Safety:
Police -
Salaries and Benefits 274,461 288,496 14,035 262,867
Supplies and Maintenance 8,100 7,837 (263) 7,451
Professional Services 28,100 28,360 260 26,032
Travel and Conferences 800 320 (480) 1,234
Insurance 5,500 4,250 (1,250) 5,000
Advertising 150 330 180 57
Capital Expenditures 3,500 395 (3,105) 595
Other 1,850 914 (936) 946
Fire Protection -
Salaries and Benefits 15,248 7,402 (7,846) 5,952
Supplies and Maintenance 21,365 11 ,220 (10,145) 7,875
Professional Services 67,593 65,636 (1,957) 5,398
Travel and Conferences 3,600 2,167 (1,433) 4,444
Fire Protection 37,650 30,615 (7,035) 90,017
Insurance 14,700 3,855 (10,845) 10,050
Utilities 6,650 5,181 (1,469) 3,223
State Aid Reimbursement 18,250 20,530 2,280 21,001
Pension Relief Fund 6,750 2,813 (3,937) 6,498
Capital Expenditures 67,442 43,750 (23,692) 6,4 70
Other 6,795 3,655 (3,140) 1,945
Building Inspection-
Supplies 200 206 6 140
Professional Services 12,200 12,471 271 18,353
Other 3,100 2,795 (305) 2,219
36
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31,1997
(With Comparative Actual Totals for the Year Ended December 31, 1996)
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Public Safety: (Continued)
Communication Service -
Supplies and Maintenance $ 500 $ 324 $ (176) $ 364
Telephone 4,800 4,616 (184) 5,019
Capital Expenditures 500 0 (500) 2,200
Automotive Service -
Supplies and Maintenance 9,500 12,483 2,983 10,788
Motor Vehicles 10,000 0 (10,000) 20,408
Emergency Management Service -
Professional Services 400 338 (62) 338
Other 5,050 0 (5,050) 0
Animal Control -
Supplies 100 48 (52) 46
Professional Services 800 737 (63) 1,018
Other 50 0 (50) 0
Total Public Safety 635,704 561,744 (73,960) 527,948
Public Works:
Ordinance Enforcement -
Salaries and Benefits 290 0 (290) 0
Professional Services 500 489 (11) 64
Other 300 46 (254) 0
Street Maintenance -
Salaries and Benefits 67,436 65,622 (1,814) 63,267
Supplies and Maintenance 10,850 11,477 627 21,328
Professional Services 100 7 (93) 2,880
Travel and Conferences 100 153 53 60
Insurance 7,000 5,625 (1,375) 6,000
Utilities 5,425 3,643 (1,782) 3,289
Capital Expenditures 81,300 23,833 (57,467) 32,691
Other 850 430 (420) 647
Industrial Development -
Professional Services 8,000 9,253 1,253 7,224
Ice and Snow Removal -
Salaries and Benefits 16,325 15,994 (331 ) 26,691
Supplies and Maintenance 11,200 21,899 10,699 13,108
Capital Expenditures 22,851 18,850 (4,001) 0
Other 1,500 6,752 5,252 1,020
37
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1997
(With Comparative Actual Totals for the Year Ended December 31, 1996)
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Public Works: (Continued)
Engineering -
Professional Services $ 15,000 $ 12,453'/ $ (2,547) $ 12,346
Street Lighting -
Supplies and Maintenance 475 0 (475) 0
Utilities 25,000 21,654 ./ (3,346) 20,419
Capital Expenditures 1,500 770,' (730) 3,307
Street Cleaning -
Salaries and Benefits 3,900 2,490 (1,410) 1,343
Supplies and Maintenance 2,400 1,916 (484) 1,520
Travel and Conferences 100 69 (31) 0
Other 200 125 (75) 196
Total Public Works 282,602 223,550 (59,052) 217,400
Culture and Recreation:
Participant Recreation -
Salaries and Benefits 9,070 10,146 1,076 10,798
Supplies and Maintenance 1,400 793 (607) 1,398
Professional Services 1,500 3,719 2,219 3,062
Insurance 800 680 (120) 0
Advertising 100 116 16 0
Other 1,300 1,359 59 1,040
Ball Park and Skating Rink -
Salaries and Benefits 2,690 1,997 (693) 2,356
Supplies and Maintenance 600 310 (290) 368
Professional Services 0 0 0 1,555
Utilities 1,330 712 (618) 612
Capital Expenditures 5,197 3,403 (1,794) 16,347
Maintenance Shop -
Supplies and Maintenance 2,650 2,139 (511 ) 2,707
Utilities 1,950 1,418 (532) 1,491
Other 100 0 (100) 0
Park Areas -
Salaries and Benefits 30,925 32,184 1,259 28,725
Supplies and Maintenance 10,200 8,125 (2,075) 14,053
Telephone 200 123 (77) 0
Insurance 1,200 1,020 (180) 1,000
Utilities 2,145 3,381 1,236 3,795
Capital Expenditures 38,298 36,125 (2,173) 15,830
Other 450 187 (263) 73
38
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 3 I, 1997
(With Comparative Actual Totals for the Year Ended December 31, 1996)
(Continued)
1997 1996
Over
(Under)
Budg~ Actual Budget Actual
EXPENDITURES: (Continued)
Culture and Recreation: (Continued)
Shade Tree Disease Control -
Supplies and Maintenance $ 75 $ 0 $ (75) $ 0
Travel and Conferences 220 0 (220) 0
Other 110 0 (110) 0
Community Support -
Insurance 300 255 (45) 15
Other _ 1,950 1,882 (68) 1,400
Total Culture and Recreation 114,760 1l0,074 (4,686) 106,625
Economic Development Authority -
Salaries and Benefits 25,606 21,228 (4,378) 0
Supplies 500 365 (135) 0
Telephone 1,200 321 (879) 0
Travel and Conferences 600 808 208 0
Capital Expenditures 3,100 3,028 (72) 0
Other 500 625 125 0
--- 26,375 (5,131) 0
Total Economic Development 31,506
Miscellaneous:
Other 500 367 (133) 57
.------
Total Expenditures ~02,964 1,161,601 (141,363) 1,095,746
REVENUES OVER (UNDER) EXPENDITURES (99,174) 180,888 280,062 120,929
OTHER FINANCING SOURCES (USES):
Capital Lease 0 0 0 27,679
Operating Transfers Out 0 (4,560) (4,560) 0
Total Other Financing Sources (Uses) 0 (4,560) (4,560) 27,679
~-_._-
EXCESS OF REVENUES AND OTHER
FINANCING USES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ _ _C22,JW 176,328 $ 275,502 148,608
-----~-
FUND BALANCE - January I 1,264,155 1,115,547
FUND BALANCE - December 31 $ I ,440,483 $ 1 ,264, 155
39
CITY OF ST. JOSEPH, MINNESOTA
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
eaID1arked revenue sources. They are usually required by statute, charter provision, or local
ordinance to finance particular functions or activities of government.
CITY OF ST. JOSEPH, MINNESOTA
SPECIAL REVENUE FUNDS
COMB~GBALANCESHEET
December 31, 1997
With Comparative Totals for December 31, 1996
Recreation DARE Lake Wobegon
Center Program Trail
ASSETS
Cash and Investments $ 29,550 $ 1,937 $ 264
FUND BALANCE
Fund Balance:
Umeserved -
Undesignated $ 29,550 $ 1,937 $ 264
Park Totals
Improvements 1997 1996
$ 33,000 $ 64,751 $ 28,619
$ 33,000 $ 64,751 $ 28,619
40
CITY OF ST. JOSEPH, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Recreation DARE Lake Wobegon
Center Pro gram Trail
REVENUES:
Miscellaneous -
Interest $ 1,738 S 0 $ 14
Contributions 0 10 250
Total Revenues 1,738 10 264
FUND BALANCE - January 1 27,812 1,927 0
FUND BALANCE - December 31 $ 29,550 $ 1,937 $ 264
Park Totals
Improvements 1997 1996
$ 0 $ 1,752 $ 1,120
33,000 33,260 0
33,000 35,012 1,120
0 29,739 28,619
$ 33,000 $ 64,751 $ 29,739
41
CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
Debt Service Funds are created to account for the payment of interest and principal on long-term,
general obligation debt other than debt issued for and serviced primarily by a governmental
enterprise.
CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals for December 31, 1996
General
General Obligation General
Obligation Water Obligation
Improvement Revenue Improvement
Bonds Bonds Bonds
of1992 of 1992 of 1992-B
ASSETS
Cash and Investments $ 25,399 $ 35,715 $ 208,222
Taxes Receivable -
Delinquent 180 0 0
Special Assessments Receivable -
Deferred 47,492 0 205,837
Delinquent 0 0 0
Accounts Receivable 0 2,430 0
Due from Other Governmental Units 0 0 0
TOTAL ASSETS $ 73,071 $ 38,145 $ 414,059
LIABILITIES AND FUND BALANCE
Liabilities:
Deferred Revenue $ 47,672 $ 0 $ 205,837
Fund Balance:
Reserved for Debt Service 25,399 38,145 208,222
TOTAL LIABILITIES AND
FUND BALANCE $ 73,071 $ 38,145 $ 414,059
General
General Obligation General
Obligation Water Obligation General
Improvement Revenue Improvement Obligations
Bonds Bonds Bonds Bonds Totals
0£1993 0£1996 0£1996 0£1997 1997 1996
$ 150,483 $ 312,862 $ 390,300 $ 38,696 $ 1,161,677 $ 900,977
450 0 1,416 0 2,046 547
113,470 0 238,655 0 605,454 647,295
2,134 0 1,450 0 3,584 1,594
0 3,696 0 0 6,126 6,280
4,270 0 21,261 0 25,531 7,808
$ 270,807 $ 316,558 $ 653,082 $ 38,696 $ 1,804,418 $ 1 ,564,50 1
$ 116,054 $ 0 $ 241,521 $ 0 $ 611,084 $ 649,436
154,753 316,558 411,561 38,696 1,193,334 915,065
$ 270,807 $ 316,558 $ 653,082 $ 38,696 $ 1 ,804,418 $ 1,564,501
42
CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
General
General Obligation General
Obligation Water Obligation
Improvement Revenue Improvement
Bonds Bonds Bonds
of 1992 of1992 of 1992-B
REVENUES:
General Property Taxes $ 7,983 $ 0 $ 0
Special Assessments 2,962 0 28,958
Intergovernmental 0 0 0
Miscellaneous -
Interest 1,868 2,869 11,677
Other 0 58,849 36,600
Total Revenues 12,813 61,718 77,235
EXPENDITURES:
Miscellaneous 0 0 0
Debt Service -
Bond Principal 10,000 35,000 20,000
Bond Interest and Fiscal Charges 10,285 21,398 19,320
Total Expenditures 20,285 56,398 39,320
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (7,472) 5,320 37,915
OTHER FINANCING SOURCES AND USES:
Operating Transfers In 0 0 0
Operating Transfers Out 0 0 0
Proceeds From the Sale of Bonds 0 0 0
Total Other Financing Sources (Uses) 0 0 0
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING
USES (7,472) 5,320 37,915
FUND BALANCE - January 1 32,871 32,825 170,307
FUND BALANCE - December 31 $ 25,399 $ 38,145 $ 208,222
General
General Obligation General
Obligation Water Obligation General
Improvement Revenue Improvement Obligation
Bonds Bonds Bonds Bonds Totals
of 1993 of1996 of 1996 of 1997 1997 1996
$ 19,944 $ 0 $ 79,748 $ 0 $ 107,675 $ 28,184
16,116 0 38,944 0 86,980 232,157
0 0 221,534 0 221,534 0
9,717 18,581 14,705 3,610 63,027 56,142
0 18,675 0 0 114,124 80,101
45,777 37,256 354,931 3,610 593,340 396,584
0 0 0 7,200 7,200 2,231
30,000 20,000 60,000 0 175,000 480,000
22,565 43,999 67,590 42,938 228,095 173,545
52,565 63,999 127,590 50,138 410,295 655,776
(6,788) (26,743) 227,341 (46,528) 183,045 (259,192)
0 10,000 0 0 10,000 38,829
0 0 0 0 0 (28,829)
0 0 0 85,224 85,224 67,590
0 10,000 0 85,224 95,224 77 ,590
(6,788) (16,743) 227,341 38,696 278,269 (181,602)
161,541 333,301 184,220 0 915,065 1,096,667
$ 154,753 $ 316,558 $ 411,561 $ 38,696 $ 1,193,334 $ 915,065
43
CITY OF ST. JOSEPH, MINNESOTA
CAPITAL PROJECTS FUNDS
Capital Projects Funds are created to account for all resources used for the acquisition of capital
facilities by a governmental unit except those financed by enterprise funds.
CITY OF ST. JOSEPH, MINNESOTA
CAP IT AL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals for December 31, 1996
Water East Minnesota
Filtration Street Fire Hall
Improvements Improvements Improvement
of1996 of1996 Proj ect
ASSETS
Cash and Investments $ 64,868 $ 15,441 $ 129,756
Accounts Receivable 0 0 2,502
Due from Other Governmental Units 0 0 0
TOTAL ASSETS $ 64,868 $ 15 ,441 $ 132,258
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 0 $ 0 $ 0
Accrued Liabilities 0 448 261
Contracts Payable 6,000 14,822 41,297
Total Liabilities 6,000 15,270 41,558
Fund Balance (Deficit):
Reserved -
Capital Improvements 58,868 171 90,700
Unreserved -
Undesignated 0 0 0
Total Fund Balance (Deficit) 58,868 171 90,700
TOTAL LIABILITIES
AND FUND BALANCE $ 64,868 $ 15 ,441 $ 132,258
1998
Klinefelter Street Totals
Walking Trail Improvements 1997 1996
$ 0 $ 0 $ 210,065 $ 183,638
0 0 2,502 0
25,000 0 25,000 0
$ 25,000 $ 0 $ 237,567 $ 183,638
$ 66,069 $ 6,307 $ 72,376 $ 1,235
30 2,961 3,700 34,287
0 0 62,119 76,604
66,099 9,268 138,195 112,126
0 0 149,739 72,747
(41,099) (9,268) (50,367) (1,235)
(41,099) (9,268) 99,372 71,512
$ 25,000 $ 0 $ 237,567 $ 183,638
44
CITY OF ST. JOSEPH, MINNESOTA
CAP IT AL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Water East Minnesota
Filtration Street Fire Hall
Improvements Improvements Improvement
of1996 of1996 Project
REVENUES:
Intergovernmental -
County Grants! Aids $ 0 $ 0 $ 0
Miscellaneous -
Interest 5,493 1,573 34,032
Other 0 0 0
Total Revenues 5,493 1,573 34,032
EXPENDITURES:
Capital Outlay-
Construction Costs 2,169 18,605 1,061,663
Other 0 0 16,400
Total Expenditures 2,169 18,605 1,078,063
EXCESS OF REVENUES 0JNDER)
EXPENDITURES 3,324 (17,032) (1,044,031 )
OTHER FINANCING SOURCES:
Operating Transfers In 0 0 0
Proceeds ITom the Sale of Bonds 0 0 1,135,966
Total Other Financing Sources 0 0 1,135,966
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER 0JNDER)
EXPENDITURES 3,324 (17,032) 91,935
FUND BALAt~CE (DEFICIT) - January 1 55,544 17,203 (1,235)
FUND BALANCE (DEFICIT) - December 31 $ 58,868 $ 171 $ 90,700
1998
Klinefelter Street Totals
Walking Trail Improvements 1997 1996
$ 25,000 $ 0 $ 25,000 $ 137,199
0 0 41,098 27,493
800 0 800 0
25,800 0 66,898 164,692
70,444 9,268 1,162,149 2,024,745
1,015 0 17,415 27,885
71,459 9,268 1,179,564 2,052,630
(45,659) (9,268) (1,112,666) (1,887,938)
4,560 0 4,560 0
0 0 1,135,966 1,959,450
4,560 0 1,140,526 1,959,450
(41,099) (9,268) 27,860 71,512
0 0 71,512 0
$ (41,099) $ (9,268) $ 99,372 $ 71,512
45
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing of self-supporting activities of
governmental units which render services on a user charge basis to the general public. The most
universal type of governmental enterprise is the public utility engaged in the provision of such
basic services as water, electricity, and natural gas. Sanitary sewer systems financed by user
charges have also assumed the status of public utility operations in many urban areas, and many
cities have combined water and sewer systems under the same management.
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMB~GBALANCESHEET
December 31, 1997
With Comparative Totals for December 31, 1996
Refuse Water Sewer
Fund Fund Fund
ASSETS
Current Assets:
Cash and Cash Equivalents $ 5,099 $ 6,733 $ 43,936
Investments 56,963 75,219 490,815
Accounts Receivable 18,044 23,402 52,329
Total Current Assets 80,106 105,354 587,080
Fixed Assets:
Land and Land Improvements 0 12,996 4,940
Treatment Plant and Lines 0 1,442,544 1,874,045
Buildings 0 0 517,983
Water Storage Facility 0 1,236,543 0
Machinery and Equipment 0 37,434 132,045
Construction in Progress 0 0 0
0 2,729,517 2,529,013
Less: Accumulated Depreciation 0 (348,327) (877,727)
Net Fixed Assets 0 2,381,190 1,651,286
TOTAL ASSETS $ 80,106 $ 2,486,544 $ 2,238,366
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accrued Liabilities $ 280 $ 7,684 $ 6,771
Due to Other Governmental Units 0 0 6,484
Compensated Absences Payable 0 10,227 6,012
Total Current Liabilities 280 17,911 19,267
Fund Equity:
Contributed Capital 0 2,318,285 2,512,901
Retained Earnings -
Unreserved (Deficit) 79,826 150,348 (293,802)
Total Fund Equity 79,826 2,468,633 2,219,099
TOTAL LIABILITIES AND
FUND EQUITY $ 80,106 $ 2,486,544 $ 2,238,366
Totals
1997 1996
$ 55,768 $ 526,956
622,997 0
93,775 102,386
772,540 629,342
17,936 17,936
3,316,589 2,678,589
517,983 517,983
1,236,543 1,236,543
169,479 166,320
0 638,000
5,258,530 5,255,371
(1,226,054) (1,104,270)
4,032,476 4,151,101
$ 4,805,016 $ 4,780,443
$ 14,735 $ 16,739
6,484 6,267
16,239 16,248
37,458 39,254
4,831,186 4,829,414
(63,628) (88,225)
4,767,558 4,741,189
$ 4,805,016 $ 4,780,443
46
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Refuse Water Sewer
Fund Fund Fund
OPERATING REVENUES:
Charges for Services $ 94,744 $ 154,816 $ 197,081
OPERATING EXPENSES:
Salaries and Related Taxes and
Benefits 1,824 57,430 49,590
Utilities 0 17,755 7,025
Supplies 111 5,300 2,080
Sewer Use Rental 0 0 82,772
Postage 287 322 332
Repairs and Maintenance 96 8,927 4,460
Professional Fees 260 300 655
Fees and Tests 307 6,224 3,026
Dues and Subscriptions 0 568 90
Refuse Disposal 69,690 0 1,125
Depreciation 0 52,897 68,886
Insurance 0 3,400 3,855
Miscellaneous 209 551 200
Total Operating Expenses 72,784 153,674 224,096
OPERATING INCOME (LOSS) 21,960 1,142 (27 ,015)
NON-OPERATING REVENUES
Interest 3,875 3,199 30,866
Other Revenues 335 235 0
Total Non-Operating Revenues 4,210 3,434 30,866
INCOME BEFORE OPERATING
TRANSFER 26,170 4,576 3,851
Operating Transfer Out (10,000) 0 0
NET INCOME 16,170 4,576 3,851
RETAINED EARNINGS (DEFICIT) - January 1 63,656 145,772 (297,653)
RETAINED EARNINGS (DEFICIT) - December 31 $ 79,826 $ 150,348 $ (293,802)
Totals
1997 1996
$ 446,641 $ 410,477
108,844 98,258
24,780 21,300
7,491 19,565
82,772 82,025
941 1,352
13,483 3,986
1,215 2,047
9,557 9,114
658 501
70,815 69,943
121,783 109,508
7,255 5,000
960 227
450,554 422,826
(3,913) (12,349)
37,940 23,073
570 1,523
38,510 24,596
34,597 12,247
(10,000) (10,000)
24,597 2,247
(88,225) (90,472)
$ (63,628) $ (88,225)
47
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Refuse Water Sewer
Fund Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income (Loss) $ 21,960 $ 1,142 $ (27,015)
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided by Operating
Activities:
Depreciation 0 52,897 68,886
Other Non-Operating Revenues 335 235 0
Change in Assets and Liabilities:
(Increase) Decrease in Accounts
Receivable (535) (1,188) 10,334
Increase (Decrease) in Accrued
Liabilities (5,568) 1,302 2,262
Increase (Decrease) in Due to Other
Governmental Units 0 0 217
Increase in Compensated
Absences Payable 0 (241 ) 232
Total Adjustments (5,768) 53,005 81,931
Net Cash Provided by Operating Activities 16,192 54,147 54,916
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Operating Transfer to Other Fund (10,000) 0 0
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Capital Acquisitions 0 (693) (693)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 3,875 3,199 30,866
Net Sale (Purchase) ofInvestments (56,963) (75,219) ( 490,815)
Net Cash Provided (Used) by Investing Activities (53,088) (72,020) (459,949)
Net Increase (Decrease) in Cash and Cash Equivalents (46,896) (18,566) (405,726)
Cash and Cash Equivalents, January 1 51,995 25,299 449,662
Cash and Cash Equivalents, December 31 $ 5,099 $ 6,733 $ 43,936
Totals
1997 1996
$ (3,913) $ (12,349)
121,783 109,508
570 1,523
8,611 (34,167)
(2,004) (29,111)
217 (4,621)
(9) 2,047
129,168 45,179
125,255 32,830
(10,000) (10,000)
(1,386) 0
37,940 23,073
( 622,997) 99,192
(585,057) 122,265
(471,188) 145,095
526,956 381,861
$ 55,768 $ 526,956
48
CITY OF ST. JOSEPH, MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1997
1997 1996
AMOUNT AVAILABLE AND TO BE PROVIDED FOR
THE PAYMENT OF GENERAL LONG-TERM DEBT:
Amount Available in Debt Service Funds $ 1,193,334 $ 915,065
Amount to be Provided from Special Assessments 609,038 648,889
Amount to be Provided for Compensated Absences Payable 49,897 49,757
Amount to be Provided for Retirement of General Long-Term
Debt 2,652,628 1,831,046
TOTAL AVAILABLE AND TO BE PROVIDED $ 4,504.897 $ 3,444,757
GENERAL LONG-TERM DEBT:
Compensated Absences Payable $ 49,897 $ 49,757
Bonds Payable 4,455,000 3,395,000
TOTAL GEl\TERAL LONG-TERM DEBT $ 4,504,897 $ 3,444,757
49
SUPPLEMENTARY SCHEDULE
CITY OF ST. JOSEPH, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR MUNICIPAL DEVELOPMENT DISTRICT NO.1 -
TAX INCREMENT FINANCING DISTRICT NO.1
December 31, 1997
Accounted
Original for in Current Amount
Budget Prior Years Year Remaining*
SOURCES OF FUNDS:
Tax Increments $ 128,395 $ 3,079 $ 3,189 $ 122,127
Note Proceeds 81,270 0 0 81,270
Total Sources of Funds 209,665 3,079 3,189 203,397
USES OF FUNDS:
Site Excavation 20,000 0 0 20,000
Utility Improvements 20,000 0 0 20,000
Site Improvements 10,000 0 0 10,000
Professional Services -
City Engineer Consultant 10,000 0 0 10,000
Legal Expense 3,000 0 0 3,000
Planning Consultant -
Steams County BRA 3,500 0 0 3,500
Contingencies 1,000 0 0 1,000
Administrative Expenses -
General Administration 1,470 0 0 1,470
Miscellaneous 500 0 0 500
; Debt Service -
Principal 81,270 0 0 81,270
Interest 34,286 0 0 34,286
Finance Costs -
Capitalized Interest 11,800 0 0 11,800
Other Construction 12,839 0 0 12,839
Total Uses of Funds 209,665 0 0 209,665
DISTRICT BALANCE $ 0 $ 3,079 $ 3,189 $ (6,268)
* See Note 5
50
CITY OF ST. JOSEPH, MINNESOTA
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
March 5, 1998
Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the financial statements of City of St. Joseph, Minnesota as of and for the year
ended December 31, 1997, and have issued our report thereon dated March 5, 1998. We
conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grants, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance that
are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of St. Joseph's internal control over
fmancial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and not to provide assurance on the internal control over
financial reporting. However, we noted a certain matter involving the internal control over
financial reporting and its operation that we consider to be a reportable condition. Reportable
condition involves a matter coming to our attention relating to significant deficiencies in the
design or operation of the internal control over financial reporting that, in our judgment, could
adversely affect the City's ability to record, process, summarize and report financial data
consistent with the assertions of management in the financial statements. The reportable
condition is described below:
The City does not have adequate segregation of accounting duties due to a limited
number of office employees. Management has determined that this weakness is not
practical to correct.
51
A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements
in amounts that would be material in relation to the financial statements being audited may occur
and not be detected within a timely period by employees in the normal course of performing their
assigned functions. Our consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control that might be reportable conditions and,
accordingly, would not necessarily disclose all reportable conditions that are also considered to
be material weakness. However, we do not believe the reportable condition described is a
material weakness. We also noted other matters involving the internal control over financial
reporting that we have reported to the management of the City ofSt. Joseph, Minnesota in a
separate letter dated March 5, 1998.
This report is intended for the information of management and the City Council. However, this
report is a matter of public record and its distribution is not limited.
k/1,~~M
KERN, DEWENTER, VIERE, LTD.
52
CITY OF ST. JOSEPH, MINNESOTA
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH MINNESOTA STATUTES
March 7, 1998
Honorable Mayor and Members of
the City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the financial statements of the City ofSt. Joseph, Minnesota, for the year ended
December 31, 1997, and have issued our report thereon dated March 7, 1998. We conducted our
audit in accordance with generally accepted auditing standards and the provisions of the
Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal
Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the audit
included such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main
categories of compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, and claims and disbursements. Our study included all
of the listed categories. The results of our tests indicate that for the items tested the City of
St. Joseph, Minnesota, complied with the material terms and conditions of applicable legal
prOVISIons. Further, for the items not tested, based on our audit and the procedures referred to
above, nothing came to our attention to indicate that the City of St. Joseph, Minnesota, had not
complied with such legal provisions.
This report is intended solely for the use of the City and should not be used for any other
purpose. However, this report is a matter of public record and its distribution is not limited.
þ/1, ~/ ~/ ~.
KERN, DEWENTER, VIERE, LTD.
53
CITY OF ST. JOSEPH, MINNESOTA
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES
Year Ended December 31, 1997
CURRENT YEAR FINDING
None
PRIOR YEAR FINDING
None
54