HomeMy WebLinkAbout2003 Audit ReportCITY OF ST. JOSEPH
Stearns County, Minnesota
Audited Financial Statements
As of December 31, 2003
CITY OF ST. JOSEPH
Stearns County, Minnesota
TABLE OF CONTENTS
ELECTED OFFICIALS AND ADMINISTRATION ................................................ 1
INDEPENDENT AUDITORS' REPORT ................................................................... 2
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet -All Fund Types and Account Groups ............................ 3
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 ............................ 7
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings -All Proprietary Fund Types ................................................................... 9
Combined Statement of Cash Flows -All Proprietary Fund Types ......................... 10
- Notes to the Financial Statements ............................................................................. 11
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS:
General Fund:
Comparative Balance Sheets ............................................................................... 39
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual ............................................................................................. 40
Special Revenue Funds:
Combining Balance Sheet ................................................................................... 47
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance ..................................................................................................... 49
Debt Service Funds:
Combining Balance Sheet ................................................................................... 52
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance .............................................................................................................. 54
Capital Project Funds:
Combining Balance Sheet ................................................................................... 58
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance .............................................................................................................. 60
Enterprise Funds:
Combining Balance Sheet ................................................................................... 63
Combining Statement of Revenues, Expenses and Changes in Retained
Earnings ............................................................................................................. 65
Combining Statement of Cash Flows .................................................................. 67
Statement of General Long-Term Debt ..................................................................... 69
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
MINNESOTA STATUTES .......................................................................................... 70
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES ........................ 71
CITY OF ST. JOSEPH
Stearns County, Minnesota
ELECTED OFFICIALS AND ADMINISTRATION
December 31, 2003
Term of
Elected Officials Position Office Expires
Larry J. Hosch Mayor January 2005
Al Rassier Councilmember January 2005
Gary Utsch Councilmember January 2005
Dale Wick Councilmember January 2007
Ross Rieke Councilmember January 2007
Administration
Judy Weyrens City Clerk/
Treasurer/
Administrator Appointed
1
I~DV
KERN•DEWENTER•VIERE
INDEPENDENT AUDITORS' REPORT
March 19, 2004
Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the accompanying general purpose financial statements of the City of St.
Joseph, Minnesota, as of and for the year ended December 31, 2003, as listed in the Table of
Contents. These general purpose financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of St. Joseph, Minnesota, as of December 31,
2003, and the results of its operations and the cash flows of its proprietary fund types, for the
year then ended in conformity with U.S. generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general purpose financial
statements of the City taken as a whole. The combining and individual fund financial statements
listed in the Table of Contents are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of the City of St. Joseph, Minnesota.
Such information has been subjected to the auditing procedures applied in the audit of the
general purpose financial statements and, in our opinion, is fairly stated, in all material respects,
in relation to the general purpose financial statements taken as a whole.
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KERN, DEWENTER, VIERS, LTD.
St. Cloud, Minnesota
2
CITY OF ST. JOSEPH
Stearns County, Minnesota
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2003
ASSETS AND OTHER DEBITS:
ASSETS:
Cash and Investments (Including Cash
Equivalents)
Cash with Fiscal Agent
Taxes Receivable:
Delinquent
Special Assessments Receivable:
Deferred
Delinquent
Accounts Receivable
Notes Receivable
Interest Receivable
Due from Other Governrr-ental Units
Fixed Assets -Net
OTHER DEBITS:
Amount Available in Debt Service Funds
Amount to be Provided from Special
Assessments
Amount to be Provided for Compensated
Absences Payable
Amount to be Provided for Retirement of
General Long-Term Debt
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, EQUITY AND OTHER CREDITS:
LIABILITIES:
Cash Overdraft
Accrued Liabilities
Contracts Payable
Deferred Revenue
Compensated Absences Payable
Bonds Payable
Loans Payable
Total Liabilities
EQUITY AND OTHER CREDITS:
Investment in General Fixed Assets
Contributed Capital
Retained Earnings (Deficit)
Fund Balance:
Reserved
Unreserved:
Designated
Undesignated
Total Equity and Other Credits
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS
The notes to the financial statements are an integral part of this statement.
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
$ 1,190,9]0 $ 73,851 $ 2,813,996 $ 1,864,386
- - 961,516 -
8,046 - 7,610 -
3,081 - 3,832,818 -
- - 26,496 -
95,937 - 69,628 3,850
- 85,701 - -
4,385 369 19,396 4,646
10,696 - 61,979 -
$ 1,313,055 $ 159,921 $ 7,793,439 $ 1,872,882
$ - $ 61,398 $ 4,795 $ 123,486
83,963 8,679 1,750 1,127
- - - 343,536
11,127 47,533 3,866,924 158,745
10,643 - - -
105,733 117,610 3,873,469 626,894
- 38,168 3,919,970 -
864,771 - - -
342,551 4,143 - 1,245,988
1,207,322 42,311 3,919,970 1,245,988
$ 1,313,055 $ 159,921 $ 7,793,439 $ 1,872,882
3
Proprietary
Fund Types Account Groups
General General Totals
Fixed Long-Term (Memorandum Only)
Enterprise Assets Debt 2003 2002
$ 1,963,750 $ - $ - $ 7,906,893 $ 7,224,854
- - - 961,516 -
- - - 15,656 7,889
104,287 - - 3,940,186 3,247,496
- - - 26,496 23,894
150,790 - - 320,205 250,776
- - - 85,70] 10,000
8,551 - - 37,347 62,892
- - - 72,675 244,091
8,522,125 5,008,678 - 13,530,803 12,342,416
- - 3,919,970 3,919,970 3,620,265
- - 3,859,314 3,859,314 3,267,921
- - 60,604 60,604 58,005
- - 5,049,683 5,049,683 5,042,974
$ 10,749,503 $ 5,008,678 $ 12,889,571 $ 39,787,049 $ 35,403,473
$ - $ - $ - $ 189,679 $ 47,957
14,417 - - 109,936 255,204
- - - 343,536 179,552
- - - 4,084,329 3,279,279
46,676 - 60,604 117,923 107,934
1,330,000 - 12,660,000 13,990,000 11,735,000
- - 168,967 168,967 196,160
1,391,093 - 12,889,571 19,004,370 15,801,086
- 5,008,678 - 5,008,678 4,146,673
8,672,140 - - 8,672,140 9,570,807
686,270 - - 686,270 (179,142)
- - - 3,958,138 3,630,265
- - - 864,771 677,727
- - - 1,592,682 1,756,057
9,358,410 5,008,678 - 20,782,679 19,602,387
$ 10,749,503 $ 5,008,678 $ 12,889,57] $ 39,787,049 $ 35,403,473
4
CITY OF ST. JOSEPH, MINNESOTA
Stearns County, Minnesota
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE -ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 2003
REVENUES:
Taxes
Special Assessments
Licenses and Permits
Intergovernmental
Chazges for Services
Fines
Miscellaneous
Total Revenues
EXPENDITURES:
Current:
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Miscellaneous
Capital Outlay
Debt Service
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Operating Transfers Out
Sale of Surplus Property
Proceeds from the Sale of Bonds
Retirement of Long-Term Debt
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE -January 1, As Previously Stated
PRIOR PERIOD ADJUSTMENT (Note 7)
FUND BALANCE -January 1, Restated
RESIDUAL EQUITY TRANSFERS
FUND BALANCE -December 31
The notes to the financial statements are an integral part of this statement.
Governmental Fund Types
Special Debt
General Revenue Service
$ 296,750 $ 47,061 $ 304,450
(3,131) - 1,183,877
240,986 - -
793,580 42,000 185,901
211,083 - -
54,853 - -
213,497 46,569 131,698
1,807,618 135,630 1,805,926
337,888 - -
938,060 250 -
263,347 - -
84,813 107,110 -
- 68,604 -
41 - -
- - 1,415,733
1,624,149 175,964 1,415,733
183,469 (40,334) 390,193
15,439 25,000 19,558
(475,095) (15,439) -
4,776 - -
- - 1,612,186
- - (1,230,000)
(454,880) 9,561 401,744
(271,411) (30,773) 791,937
1,442,577 73,084 3,620,265
36,156 - (535,871)
1,478,733 73,084 3,084,394
- 43,639
$ 1,207,322 $ 42,311 $ 3,919,970
5
Totals
Capital (Memorandum Only)
Projects 2003 2002
$ - $ 648,261 $ 499,282
- 1,180,746 1,174,113
- 240,986 142,198
37,816 1,059,297 1,331,502
424,595 635,678 220,304
- 54,853 56,299
28,347 420,111 573,647-
490,758 4,239,932 3,997,345
- 337,888 393,060
- 938,310 1,183,525
- 263,347 285,279
- 191,923 132,156
- 68,604 77,230
- 41 103,641
3,171,223 3,171,223 4,139,459
- 1,415,733 1,862,133
3,171,223 6,387,069 8,176,483
(2,680,465) (2,147,137) (4,179,138)
430,537 490,534 87,531
(124,800) (615,334) (87,531)
- 4,776 165,592
2,736,232 4,348,418 5,644,643
- (1,230,000) -
3,041,969 2,998,394 5,810,235
361,504 851,257 1,631,097
928,123 6,064,049 4,432,952
- (499,715) -
928,123 5,564,334 4,432,952
(43,639) -
$ 1,245,988 $ 6,415,591 $ 6,064,049
6
CITY OF ST. JOSEPH
Stearns County, Minnesota
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31, 2003
REVENUES:
Taxes
Special Assessments
Licenses and Permits
Intergovernmental
Charges for Services
Fines
Miscellaneous
Total Revenues
EXPENDITURES:
Current:
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Miscellaneous
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Operating Transfers Out
Sale of Surplus Property
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE -January 1, As Previously Stated
PRIOR PERIOD ADJUSTMENT (Note 7)
FUND BALANCE -January 1, Restated
FUND BALANCE -December 31
General Fund
Over
(Under)
Budget Actual Budget
$ 343,423 $ 296,750 $ (46,673)
21,000 (3,131) (24,131)
103,850 240,986 137,136
857,589 793,580 (64,009)
204,505 211,083 6,578
80,100 54,853 (25,247)
70,800 213,497 142,697
1,681,267 1,807,618 126,351
355,135 337,888 (17,247)
838,959 938,060 99,101
346,421 263,347 (83,074)
143,041 84,813 (58,228)
500 41 (459)
1,684,056 1,624,149 (59,907)
(2,789) 183,469 186,258
- 15,439 15,439
(2,500) (475,095) (472,595)
- 4,776 4,776
(2,500) (454,880) (452,380)
$ (5,289) (271,411) $ (266,122)
The notes to the financial statements are an integral part of this statement.
1,442,577
36,156
1,478,733
$ 1,207,322
7
Special Revenue Funds
Over
(Under)
Budget Actual Budget
$ 29,280 $ 47,061 $ 17,781
- 42,000 42,000
- 46,569 46,569
29,280 135,630 106,350
- 250 250
18,000 107,110 89,110
29,280 68,604 39,324
47,280 175,964 128,684
~
(18,000) (40,334) (22,334)
- 25,000 25,000
- (15,439) (15,439)
- 9,561 9,561
$ (18,000) (30,773) $ (12,773)
73,084
73,084
$ 42,311
8
CITY OF ST. JOSEPH
Stearns County, Minnesota
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS -ALL PROPRIETARY FUND TYPES
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
Totals
2003 2002
OPERATING REVENUES:
Charges for Services $ 817,134 $ 646,185
OPERATING EXPENSES:
Salaries 158,505 134,237
Benefits 54,588 46,382
Utilities 32,277 28,841
Supplies 22,222 16,546
Sewer Use Rental 125,920 125,374
Postage 2,199 1,521
Repairs and Maintenance 23,145 31,301
Professional Fees 495 -
Fees and Tests 11,832 10,065
Dues and Subscriptions 638 626
Refuse Disposal 106,615 109,544
Depreciation 218,877 164,346
Insurance 450 10,800
Miscellaneous 5,249 4,639
Total Operating Expenses 763,012 684,222
OPERATING INCOME (LOSS) 54,122 (38,037)
NONOPERATING REVENUES (EXPENSES):
Investment Income 51,293 56,722
Special Assessments 129,681 -
Other Revenues 20,378 16,615
Interest Expense (64,609) -
Loss on Disposal of Property - (7,907)
Contributed Revenue 100,211 -
Total Nonoperating Revenues (Expenses) 236,954 65,430
INCOME BEFORE OPERATING TRANSFERS 291,076 27,393
Operating Transfer In 124,800 -
NET INCOME 415,876 27,393
RETAINED EARNINGS (DEFICIT) -January 1 (179,142) (206,535)
PR10R PERIOD ADJUSTMENT (Note 7) 449,536 -
RETAINED EARNINGS (DEFICIT) -January 1, Restated 270,394 (206,535)
RETAINED EARNINGS (DEFICIT) -December 31 $ 686,270 $ (179,142)
The notes to the fmancial statements are an integral part of this statement.
9
CITY OF ST. JOSEPH
Stearns County, Minnesota
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
Totals
2003 2002
CASH FLOWS -OPERATING ACTIVITIES:
Operating Income (Loss) $ 54,122 $ (38,037)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Flows -Operating Activities:
Depreciation 218,877 164,346
Other Nonoperating Revenues 150,059 16,615
Change in Assets and Liabilities:
Special Assessments Receivable -Deferred (104,287) -
Accounts Receivable (11,868) 47,360
Due from Other Governmental Units 2,379 -
Accrued Liabilities (29,081) (14,047)
Compensated Absences Payable 11,272 3,469
Total Adjustments 237,351 217,743
Net Cash Flows -Operating Activities 291,473 179,706
CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES:
Operating Transfers from Other Funds 124,800 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Purchase of Capital Assets (5,050) (1,560)
Principal Payments of Debt (95,000) -
Interest Payments of Debt (64,609) -
Net Cash Flows -Capital and Related Financing Activities (164,659) (1,560)
CASH FLOWS -INVESTING ACTNITIES:
Investment Income 56,479 66,902
Net Change in Cash and Cash Equivalents 308,093 245,048
Cash and Cash Equivalents, Beginning of Year,
as Previously Stated 1,133,728 888,680
PRIOR PERIOD ADJUSTMENT (Note 7) 521,929 -
Cash and Cash Equivalents, Beginning of Year,
Restated 1,655,657 888,680
Cash and Cash Equivalents, End of Year $ 1,963,750 $ 1,133,728
Noncash Capital and Financing Activities:
Contributed Assets $ 100,211 $ -
Total Noncash Capital and Financing Activities $ 100,211 $
The notes to the financial statements are an integral part of this statement.
10
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of St. Joseph, Minnesota, has amayor-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 U.S. generally accepted accounting principles as
applicable to governments. With respect to proprietary activities, the City has adopted GASB
Statement 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 (FASB)
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 FASBs,
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
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's
component unit is presented in this report as follows:
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 of the
people of the City of St. Joseph. The Authority is governed by a five member board appointed
by 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 EDA is presented as a Special Revenue Fund and the EDA Public
Project Revenue Bonds of 2000 Debt Service Fund. Separate financial statements are not
prepared for the EDA.
11
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 -This 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 -These 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.
Debt Service Funds -These Funds are used to account for the accumulation of resources
for, and the payment of, general long-term debt principal, interest and related costs.
Capital Projects Funds -These 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).
Proprietary Funds:
Enterprise Funds -These 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 body is 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 determination 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, Sewer and Storm Water Enterprise Funds.
12
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Fixed Assets and Long-Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long-term liabilities
associated with a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or' "financial 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.
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.
The two account groups, General Fixed Assets and General Long-Term Debt, are not "funds".
They are concerned only with the measurement of financial position. They are not involved with
measurement of results of operations.
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.
13
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Fixed Assets and Long-Term Liabilities (Continued)
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, 2003 and 2002 is $ 218,877 and $ 164,346, 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.
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.
14
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
E. Budgetary Data (Continued)
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 U.S. generally accepted accounting principles.
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, 2003, no outstanding encumbrances existed.
G. Cash and Investments (Including Cash Equivalents) (See Note 3}
Cash balances from all funds are combined and invested to the extent available in authorized
investments. Earnings from such investments are allocated to the respective funds on the basis
of applicable cash balance participation by each fund. Investments are carried at fair value.
For purposes of the Statement of Cash Flows, the City considers all short-term, highly liquid
investments with original maturity dates of three months or less from the date of purchase to be
cash equivalents. In addition, cash invested in the City's cash management pool is considered to
be cash equivalents. Based on this policy, the total cash and investments of the proprietary funds
are considered to be cash equivalents.
H. Taxes Receivable
Delinquent taxes receivable represent the past six years of uncollected tax levies.
I. 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 and are paid in 2004 and years thereafter.
15
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
J. Deferred Revenue
Deferred revenue represents delinquent taxes and deferred and delinquent assessments
receivable. In 2003, deferred revenue also includes the outstanding pledge receivable balance in
the City Beautification Special Revenue Fund. This revenue is deferred until it is measurable
and available as net current assets.
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
720 hours) at various rates depending on the employee type, 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 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.
Unreserved, 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.
16
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
M. Revenues, Expenditures and Expenses
1. Revenues
Property taxes and special assessment principal and interest aze recognized as revenue
when measurable and available. Portions of taxes paid by the state in the form of Market
Value Credit 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 aze recorded when
earned because they aze measurable and available.
2. Property Tax Collection Calendar
The City levies its property tax for the subsequent year during the month of December.
December 28 is the last day the City can certify a tax levy to the County Auditor for
collection the following year. 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 yeaz. Taxes not collected as of December 31 each
year are shown as delinquent taxes receivable.
The County Auditor creates 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 the list of
taxes and special assessments to be collected on each pazcel of property to the County
Treasurer in January of each yeaz.
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
yeaz.
Property owners aze 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 of 3% is
assessed on homesteaded property, and 7% on nonhomesteaded property. An additional
1% penalty is added each month the taxes remain unpaid, until October 15. If the taxes
due May 15 aze not paid by October 15, a 2% penalty per month is added to homesteaded
property and 4% per month to nonhomesteaded property until January 1.
17
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
M. Revenues, Expenditures and Expenses (Continued)
2. Property Tax Collection Calendar (Continued)
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.
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.
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 U.S. generally
accepted accounting principles. Interfund eliminations have not been made in the aggregation of
these data.
18
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 U.S. 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.
NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Fund Deficits
The following funds have deficit fund balance/retained earnings at December 31, 2003:
Special Revenue Funds:
TIF No. 1-4, St. Joseph Development $ 659
City Beautification 67,716
Debt Service Fund:
EDA Public Project Revenue Bonds of 2000 4,261
Capital Project Funds:
Maintenance Facility 117,436
Northland Phase Eight 5,927
Cloverdale Area 3,115
Enterprise Fund:
Sewer 439,935
These deficits will be eliminated by future revenues, user charges or transfers from other funds.
19
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
B. Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in the following funds for the year ended December 31,
2003:
Expenditures Appropriation
Special Revenue Funds:
EDA $ 50,238 $ 29,280
TIF No. 1-3 Borgert 17,422 -
TIF No. 1-4 St. Joseph Development 659 -
DARE Program 250 -
City Beautification 105,910 -
Revolving Loan 285 -
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets
1. Deposits 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 Statutes. Each fund's portion
of this pool (or pools) is displayed on the financial 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 Federal Depository
Insurance Corporation (FDIC) insurance.
Category 1 -Deposits covered by 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 City's name.
Category 3 -Deposits which are not insured or collateralized; or those deposits
where collateral assignment has not been perfected.
20
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
1. Deposits and Investments (Including Cash Equivalents) (Continued)
a. Deposits (Continued)
Category
1 2 3
Bank
Balance
Carrying
Amount
Bank Accounts $ 1,367,861 $ - $ - $ 1,367,861 $ 1,038,693
Certificates of Deposit 4,554,184 - - 4,554,184 4,554,184
Total Deposits $ 5,922,045 $ - $ - $ 5,922,045 $ 5,592,877
b. Investments
Minnesota 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 aforementioned 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.
21
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
1. Deposits and Investments (Including Cash Equivalents) (Continued)
b. Investments (Continued)
Category Carrying and
1 2 3 Fair Value
U.S. Government and
Federal Agency Notes
and Bonds $ 1,564,914 $ - $ - $ 1,564,914
Negotiable Certificates
of Deposit 1,452,055 - - 1,452,055
Total Investments $ 3,016,969 $ - $ - 3,016,969
Unclassified as to Risk:
Money Market Mutual Funds 68,564
Total Deposits (See
Note 3 A.l.a.) 5,592,877
Petty Cash 320
Total Deposits and Investments
(Including Cash Equivalents) $ 8,678,730
Deposit and investment balances are presented in the general purpose financial
statements as follows:
Deposit and Cash Investments (Including Cash Equivalents) $ 7,906,893
Cash with Fiscal Agent 961,516
Cash Overdraft (189,679)
Total $ 8,678,730
22
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
2. Due from Other Governmental Units
The following is a summary of due from other governmental units at December 31, 2003:
St. Wendel Stearns State of
Township County Minnesota Total
General Fund:
Fines $ - $ - $ 3,054 $ 3,054
Property Taxes/Special Assessments - 5,330 - 5,330
Miscellaneous 2,312 - - 2,312
Total General Fund 2,312 5,330 3,054 10,696
Debt Service Funds:
G.O. Improvement Bonds of 1998 -
Property Taxes/Special Assessments
G.O. Improvement Bonds of 1999 -
Property Taxes/Special Assessments
EDA Public Project Revenue Bonds of
2000 -Property Taxes/Special
Assessments
G.O. Improvement Bonds of 2001 -
Property Taxes/Special Assessments
G.O. Improvement Bonds of 2002 -
Property Taxes/Special Assessments
G.O. Certificate of Indebtedness of 2002 -
Property Taxes/Special Assessments
G.O. Refunding Bonds of 1997/2003 -
Property Taxes/Special Assessments
G.O. Improvement Crossover Refunding
Bonds of 1992/1993/1996/2003 -
Property Taxes/Special Assessments
Total Debt Service
Total
- 19,852 - 19,852
- 2,997 - 2,997
- 534 - 534
- 536 - 536
- 33,787 - 33,787
- 239 - 239
- 281 - 281
- 3,753 - 3,753
- 61,979 - 61,979
$ 2,312 $ 67,309 $ 3,054 $ 72,675 I'
23
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
3. Fixed Assets
A summary of changes in general fixed assets follows:
Land
Buildings
Improvements Other
than Buildings
Machinery and Equipment
Office Furniture
Motor Vehicles
Other Equipment
Total
Balance
01-01-03 Additions
$ 125,455 $ 220,803
1,634,133 516,731
Balance
Disposals 12-31-03
$ - $ 346,258
- 2,150,864
438,822 65,193 - 504,015
1,292,236 - - 1,292,236
134,813 7,222 - 142,035
221,365 - - 221,365
299,848 52,057 - 351,905
$ 4,146,672 $ 862,006 $ - $ 5,008,678
A summary of Enterprise Fund fixed assets at December 31, 2003, is as follows:
Water Sewer
Fund Fund
Land and Land Improvements
Treatment Plant and Lines
Buildings
Water Storage Facility
Machinery and Equipment
Total Cost
Less: Accumulated Depreciation
Net Fixed Assets
$ ] 2,996
3,582,578
1,236,542
94,528
4,926,644
(724,656)
$ 4,941
5,001,155
517,983
181,904
5,705,983
(1,3 85,846)
Total
$ 17,937
8,583,733
517,983
1,236,542
276,432
10,632,627
(2,110,502)
$ 4,201,988 $ 4,320,137 $ 8,522,125
24
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
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
(PEKE) 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.
PERA provides retirement benefits as well as disability benefits to members, and
benefits to survivors upon death of eligible members. Benefits are established by
state statute, and vest after three years of credited service. The defined retirement
benefits are based on a member's highest average salary for any five successive years
of allowable service, age and years of credit at termination of service.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan
members. The retiring member receives the higher of a step-rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the
first 10 years of service and 2.7% for each remaining year. The annuity accrual rate
for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years
and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7%
of average salary for Basic Plan members and 1.7% for Coordinated Plan members
for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for
each year of service. For all PEPFF members and for PERF members hired prior to
July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available
when age plus years of service equa190. Normal retirement age is 55 for PEPFF
members and 65 for Basic and Coordinated members hired prior to July 1, 1989.
Normal retirement age for unreduced social security benefits capped at 66 for
Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is
also available to eligible members seeking early retirement.
25
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
1. Defined Benefit Pension Plans -Statewide (Continued)
A. Plan Description (Continued)
There are different types of annuities available to members upon retirement. A
single-life 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 be payable over joint lives. Members may also
leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are
available at any time to members who leave public service, but before retirement
benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current
provisions and apply to active plan participants. Vested, terminated employees who
are entitled to benefits but are not receiving them yet are bound by the provisions in
effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements
and required supplementary information for PERF and PEPFF. That report may be
obtained on the web at mnpera.org, by writing to PERA at 60 Empire Drive #200, St.
Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. These statutes are established and amended by the state legislature.
The City makes annual contributions to the pension plans equal to the amount
required by state statutes. PERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10% and 5.10%, respectively, of their annual covered
salary. PEPFF members are required to contribute 6.20% of their annual covered
salary. The City of St. Joseph is required to contribute the following percentages of
annual covered payroll: 11.78% for Basic Plan PERF members, 5.53% for
Coordinated Plan PERF members and 9.30% for PEPFF members. The City's
contributions to the Public Employees Retirement Fund for the years ending
December 31, 2003, 2002 and 2001 were $ 20,396, $ 20,462 and $ 17,465,
respectively. The City's contributions to the Public Employees Police and Fire Fund
for the years ending December 31, 2003, 2002 and 2001 were $ 28,667, $ 26,783 and
$ 25,979, respectively. The City's contributions were equal to the contractually
required contributions for each year as set by state statute.
26
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
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 amulti-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 2003 was $ 777,349. The City's contributions were
calculated using the base salary amount of $ 19,390. Both the City and the elected local
government official made the required 5% contribution, amounting to $ 966 from each
source, or $ 1,932 in total.
3. Deferred Revenue
Deferred revenue at December 31, 2003, consisted o£
Taxes Receivable:
Delinquent
Special Assessments Receivable:
Deferred
Delinquent
Notes Receivable
Prepaid Hookup Charges
Special
General Revenue
$ 8,046 $ -
3,081 -
- 47,533
Debt Capital
Service Project
T.,+~ 1
Total
$ 7,610 $ -
$ 15,656
3,832,818 - 3,835,899
26,496 - 26,496
- - 47,533
- 158,745 158,745
$11,127 $ 47,533 $ 3,866,924 $158,745 $4,084,329
27
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
4. Bonds Payable
The following is a summary of bond transactions for the year ended December 31, 2003:
General
Obligation General
General Special Obligation
Obligation Assessment Revenue Revenue Total
Bonds Payable:
January 1, 2003 $1,285,000 $8,150,000 $1,425,000 $ 875,000 $11,735,000
Bonds Issued 815,000 2,885,000 - 700,000 4,400,000
Bonds Retired (105,000) (1,900,000) (95,000) (45,000) (2,145,000)
Bonds Payable:
December 31, 2003 $1,995,000 $9,135,000 $1,330,000 $1,530,000 $13,990,000
Bonds outstanding at December 31, 2003, 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 2017, interest at 4.00 to 5.75%
$ 245,000 General Obligation Equipment
Certificates of Indebtedness of 2002,
due in annual installments of $ 60,000 to $ 65,000
through December 2006, interest at 2.75 to 4.20%
$ 815,000 General Obligation Refunding Bonds
of 2003, due in annual installments of $ 50,000 to
$ 80,000 through December 2017, interest at
1.50 to 4.40%
Total General Obligation Bonds
$ 995,000
185,000
815,000
1,995,000
28
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
4. Bonds Payable (Continued)
General Obligation Special Assessment Bonds:
$ 545,000 General Obligation Improvement Bonds of 1998,
due in annual installments of $ 25,000 to $ 50,000
through December 2013, interest at 3.85 to 5.00%
$ 1,330,000 General Obligation Improvement Bonds of 1999,
due in annual installments of $ 65,000 to $ 125,000
through December 2014, interest at 4.875 to 5.20%
$ 810,000 General Obligation Improvement Bonds of 2001,
due in annual installments of $ 160,000 to $ 165,000
through December 2006, interest at 3.00 to 3.85%
$ 4,700,000 General Obligation Improvement Bonds of 2002,
due in annual installments of $ 235,000 to $ 405,000
through December 2017, interest at 2.00 to 4.30%
$ 2,135,000 General Obligation Bonds of 2003,
due in annual installments of $ 240,000 to $ 685,000
through December 2008, interest at 1.25 to 2.65%
$ 750,000 General Obligation Improvement Crossover
Refunding Bonds of 2003, due in annual installments
of $ 60,000 to $ 120,000 through December 2011,
interest at 1.25 to 3.15%
Total General Obligation
Special Assessment Bonds
$ 405,000
1,060,000
490,000
4,295,000
2,135,000
750,000
9,135,000
29
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
4. Bonds Payable (Continued)
General Obligation Revenue Bonds:
$ 640,000 General Obligation Sewer Revenue Bonds of 2001,
due in annual installments of $ 25,000 to $ 45,000
through December 2021, interest at 3.30 to 5.15%
$ 810,000 General Obligation Water Revenue Refunding
Bonds of 2002, due in annual installments of
$ 40,000 to $ 85,000 through December 2016,
interest at 1.75 to 4.80%
Total General Obligation Revenue Bonds
Revenue Bonds:
$ 960,000 EDA Public Project Revenue Bonds of 2000,
due in annual installments of $ 40,000 to $ 95,000
through December 2015, interest at 5.60 to 6.60%
$ 700,000 EDA Public Project Revenue Bonds of 2003,
due in annual installments of $ 30,000 to $ 65,000
through December 2018, interest at 2.00 to 4.90%
Total Revenue Bonds
Total Bonds Payable
$ 590,000
740,000
1,330,000
830,000
700,000
1,530,000
$ 13,990,000
30
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
4. Bonds Payable (Continued)
The annual requirements to amortize all bonded debt outstanding as of December 31,
2003, including interest payments of $ 3,460,967 are:
General
Year Obligation General
Ending General Special Obligation
December 31, Obligation Assessment Revenue Revenue Total
2004 $ 1,142,885 $ 1,781,305 $ 160,281 $ 159,568 $ 3,244,039
2005 141,915 1,304,091 162,735 161,042 1,769,783
2006 148,765 1,267,094 114,701 162,270 1,692,830
2007 75,072 1,089,093 112,475 168,001 1,444,641
2008 78,973 1,074,859 110,091 163,200 1,427,123
2009 - 2013 399,742 2,955,487 585,632 830,883 4,771,744
2014 - 2018 332,780 1,620,851 462,145 536,125 2,951,901
2019 - 2021 - - 148,906 - 148,906
Totals $ 2,320,132 $ 11,092,780 $ 1,856,966 $ 2,181,089 $ 17,450,967
5. Loans Payable
The following is a summary of loan transactions for the year ended December 31, 2003:
Stearns
Electric
Loans Payable -
January 1, 2003
Loans Retired
$ 196,160
(27,193)
Loans Payable -
December 31, 2003
$ 168,967
31
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
5. Loans Payable (Continued)
The annual requirements to amortize all loans outstanding as of December 31, 2003,
including interest payments of $ 5,963 are:
Year Ending General
December 31, Obligation
2004 $ 29,155
2005 29,155
2006 29,155
2007 29,155
2008 29,155
2009 29,155
Totals $ 174,930
6. Conduit Debt Obligations
Conduit debt obligations are certain limited-obligation revenue bonds or similar debt
instruments issued for the express purpose of providing capital financing for a specific
third party. The City has issued various revenue bonds to provide funding to private-
sector entities for projects deemed to be in the public interest. Although these bonds bear
the name of the City, the City has no obligation for such debt. Accordingly, the bonds
are not reported as liabilities in the financial statements of the City.
As of December 31, 2003, the City's conduit debt consisted of the following:
Outstanding
Balance
12/31 /03
Commercial Development Revenue Note (Independence
Center) Series 2001 $ 605,000
Industrial Revenue Bonds (St. Joseph Development, LLC)
Series 2002 2,915,000
$ 3,520,000
32
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
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 is comprised of the following:
Debt Special
Service Revenue
Debt Service $ 3,919,970 $ -
Notes Receivable - 38,168
Total $ 3,919,970 $ 38,168
b. Unreserved fund balance is comprised of the following:
Special Capital
General Revenue Projects Total
Designated for Fire $ 378,210 $ - $ - $ 378,210
Designated for Capital
Expenditures
Designated for Debt Service
Designated for Working Capital
Undesignated
Total Unreserved
Fund Balance
61,816 - - 61,816
174,745 - - 174,745
250,000 - - 250,000
342,551 4,143 1,245,988 1,592,682
$ 1,207,322 $ 4,143 $ 1,245,988 $ 2,457,453
33
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 3 -DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
C. Fund Equity (Continued)
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, 2002 $ 9,570,807
Capital Contributed in 2003 526,333
Prior Period Adjustment (Note 7) (1,425,000)
Balance December 31, 2003 $ 8,672,140
NOTE 4 -SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains four Enterprise Funds which provide refuse, water, sewer and storm water
services. Segment information for the year ended December 31, 2003, is as follows:
Operating Revenues
Depreciation
Operating Income (Loss)
Operating Transfers In
Special Assessment
Revenue
Net Income (Loss)
Contributed Capital
Fixed Assets:
Acquisitions
Net Working Capital
Total Assets
Bonds Payable
Total Equity
Refuse Water Sewer Storm Water
Fund Fund Fund Fund Total
$ 168,459 $ 289,985 $ 278,236 $ 80,454 $ 817,134
- 91,645 127,232 - 218,877
35,852 26,742 (88,926) 80,454 54,122
- - 124,800 - 124,800
- - 129,681 - 129,681
41,286 78,029 214,703 81,858 415,876
- 3,704,119 4,968,021 - 8,672,140
- 3,064 1,986 - 5,050
225,077 920,645 833,705 81,858 2,061,285
230,496 5,234,926 5,202,223 81,858 10,749,503
- 740,000 590,000 - 1,330,000
225,077 4,462,633 4,588,842 81,858 9,358,410
34
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 5 -RISK 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
material 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, 2003, 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.
NOTE 6 -COMMITMENTS
The City entered into construction contracts as follows:
Project
South East Utilities
East Baker Street Lift
Station
Liberty Pointe
Northland Plat VII
Expended
Project through
Authorization 12/31/03
$ 367,498 $ 339,560
161,841 155,219
1,136,284 955,642
332,086 300,726
Commitment
$ 27,938
6,622
180,642
31,360
35
CITY OF ST. JOSEPH
Stearns County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2003
NOTE 7 -PRIOR PERIOD ADJUSTMENTS
Prior to 2003, the City had been carrying the debt associated with water and sewer projects in
Debt Service Funds. In 2003, the Debt Service Fund activity was combined with the related
Enterprise Fund. The amount of prior period adjustment shown on the financial statements
account for the effect of transferring the debt and its activity from the Debt Service Funds to the
Enterprise Funds.
In addition, a prior period adjustment is also reflected in the General Fund. Prior to 2003, the
City recognized their insurance policy expenditures in the year prior to the policy period based
on the purchases method (reported when purchased). During 2003, the City retroactively (to
2002) changed the method to the consumption method in which the expenditures are reported
when consumed. Both methods aze acceptable under GAAP.
NOTE 8 -RELATED PARTY TRANSACTION
'The EDA has issued Public Project Revenue Bonds of 2000 and 2003. These bonds are to
finance the city hall and maintenance facility projects. Rental payments are due from the City to
the EDA. The City will own the projects upon completion of the rental payments. Since the
EDA is reported as a blended component unit of the City, the lease transactions aze not reported.
The debt and projects are recorded as though part of the City.
NOTE 9 -GASB STATEMENT N0.34
In June 1999, the Governmental Accounting Standards Board (GASB) unanimously approved
Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for
State and Local Governments (Statement). Significant changes in the Statement include the
following:
• For the first time the financial statements will include:
- A Management Discussion and Analysis (MD&A) section providing an analysis of the
City's overall financial position and results of operations.
- Financial statements prepared using full accrual accounting for all of the City's activities,
including reporting infrastructure assets (roads, bridges, etc.).
• A change in the fund financial statements to focus on the major funds.
The general provisions of GASB Statement No. 34 must be implemented by City of St. Joseph
no later than the fiscal year ending December 31, 2004.
36
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS
37
CITY OF ST. JOSEPH
Stearns County, 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, charges for current
services, state aids 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.
38
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
COMPARATIVE BALANCE SHEETS
December 31
2003 2002
ASSETS:
Cash and Investments
Taxes Receivable:
Delinquent
Special Assessments Receivable:
Deferred
Accounts Receivable
Notes Receivable
Interest Receivable
Due from Other Governmental Units
TOTAL ASSETS
LIABILITIES AND FUND BALANCE:
Liabilities:
Accrued Liabilities
Deferred Revenue
Compensated Absences Payable
Total Liabilities
Fund Balance:
Reserved for Notes Receivable
Unreserved:
Designated
Undesignated
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
$ 1,190,910 $ 1,466,090
8,046 4,037
3,081 3,469
95,937 42,226
- 10,000
4,385 7,949
10,696 98,068
$ 1,313,055 $ 1,631,839
$ 83,963 $ 167,231
11,127 7,506
10,643 14,525
105,733 189,262
- 10,000
864,771 677,727
342,551 754,850
1,207,322 1,442,577
$ 1,313,055 $ 1,631,839
39
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Actual Totals for the Year Ended December 31, 2002)
2003 2002
Over
(Under)
Budget Actual Budget Actual
REVENUES:
General Property Taxes $ 343,423 $ 296,746 $ (46,677) $ 257,694
Tax Increments - 4 4 -
Special Assessments 21,000 (3,131) (24,131) 2,570
Licenses and Permits 103,850 240,986 137,136 142,198
Intergovernmental:
Federal Grants - 3,668 3,668 25,257
State:
Local Government Aid 789,884 663,607 (126,277) 780,719
HACA - - - 1,055
Market Value Credit - 47,658 47,658 44,895
Police Aid 26,000 26,783 783 19,616
Fire Aid 24,000 36,639 12,639 29,297
Other 10,705 8,181 (2,524) 7,364
County Grants 7,000 7,044 44 7,044
Total Intergovernmental 857,589 793,580 (64,009) 915,247
Charges for Services:
General Government 8,350 20,979 12,629 9,347
Public Safety -Fire 180,155 179,500 (655) 151,279
Culture and Recreation 16,000 10,604 (5,396) 14,360
Tota] Charges for Services 204,505 211,083 6,578 174,986
Fines 80,100 54,853 (25,247) 56,299
Miscellaneous:
Investment Income 51,000 28,303 (22,697) 47,412
Park Dedication Fees - 43,000 43,000 5,200
Refunds and Reimbursements 19,800 110,413 90,613 68,755
Contributions - 31,781 31,781 50,519
Total Miscellaneous 70,800 213,497 142,697 171,886
Total Revenues 1,681,267 1,807,618 126,351 1,720,880
EXPENDITURES:
General Government:
Mayor and Council:
Salaries 23,500 17,630 (5,870) 18,057
Benefits 5,689 4,299 (1,390) 3,899
Supplies 50 132 82 35
Travel and Conferences 3,700 2,346 (1,354) 3,197
Advertising - 34 34 -
Insurance 550 650 100 650
Dues and Subscriptions 9,150 9,388 238 10,366
Other - 49 49 -
40
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Actual Totals for the Year Ended December 31, 2002)
(Continued)
2003 2002
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
General Government: (Continued)
Legislative Committees:
Legislative Bodies $ 5,000 $ 2,480 $ (2,520) $ 3,760
Benefits 75 20 (55) 100
Other 2,300 966 (1,334) 5,571
Elections:
Salaries - - - 789
Benefits - - - 298
Supplies 100 - (100) 495
Professional Services 500 2,665 2,165 8,996
Capita! Expenditures 7,300 - (7,300) -
Other 900 702 (198) 1,289
Assessing:
Salaries 11,500 13,430 1,930 11,650
Benefits 995 1,027 32 891
Supplies 100 - (100) 42
Travel and Conferences 100 130 30 I95
Other 300 298 (2) 313
Administration:
Salaries 87,000 78,184 (8,816) 71,063
Benefits 18,990 19,469 479 15,687
Supplies and Maintenance 7,600 10,275 2,675 9,033
Professional Services 700 10,737 10,037 11,109
Telephone 2,500 2,747 247 1,622
Trave! and Conferences 3,000 1,607 (1,393) 1,272
Insurance 1,700 2,000 300 2,000
Capital Expenditures 4,550 - (4,550) 22,282
Other 2,700 3,292 592 2,555
Accounting:
Salaries 36,000 21,643 (14,357) 35,938
Benefits 12,250 8,771 (3,479) 11,727
Supplies 2,250 2,524 274 2,998
Professional Services - 3,800 3,800 -
Traveland Conferences 1,000 825 (175) 462
Other 1,450 753 (697) 649
Independent Auditing:
Services and Charges 9,200 9,350 150 8,900
Legal:
Services and Charges 15,000 28,116 13,116 24,376
Planning and Zoning:
Professional Services - 7,871 7,871 26,858
Annexation Fee 500 438 (62) 311
Property Tax Sharing 30,000 26,112 (3,888) 25,394
St. Wendel Sewer 500 102 (398) -
41
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Actual Totals for the Year Ended December 31, 2002)
(Continued)
EXPENDITURES: (Continued)
General Government: (Continued)
General Government Buildings:
Salaries
Benefits
Supplies and Maintenance
Professional Services
Telephone
Insurance
Utilities
Capital Expenditures
Other
Cable Access
Total General Government
Public Safety:
Police:
Salaries
Benefits
Supplies and Maintenance
Professional Services
Travel and Conferences
Insurance
Advertising
Capital Expenditures
Other
Fire Protection:
Salaries
Benefits
Supplies and Maintenance
Professional Services
Travel and Conferences
Fire Protection
Insurance
Utilities and Telephone
State Aid Reimbursement and Contribution
Training
Capital Expenditures
Other
Building Inspection:
Professional Services
Other
Communication Service:
Supplies and Maintenance
Telephone
Capital Expenditures
2003 2002
Over
(Under)
Budget Actual Budget Actual
$ 2,000 $ 436 $ (1,564) $ -
636 173 (463) -
10,400 11,671 I ,271 12,701
2,600 3,326 726 4,832
500 994 494 1,117
1,400 1,700 300 1,700
20,300 16,535 (3,765) 16,318
400 - (400) -
- - - 3,895
8,200 8,191 (9) 7,668
355,135 337,888 (17,247) 393,060
320,125 326,469 6,344 310,678
86,379 99,177 12,798 88,424
19,100 11,469 (7,631) 21,864
36,600 38,829 2,229 26,241
1,500 1,677 177 1,141
5,300 6,500 1,200 6,500
100 115 15 122
7,600 699 (6,901) 11,187
3,100 1,849 (1,251) 2,514
46,700 39,895 (6,805) 36,070
10,075 11,021 946 12,481
14,700 14,381 (319) 17,438
8,100 8,723 623 7,166
3,750 2,741 (1,009) 2,346
59,000 72,182 13,182 60,149
16,000 15,000 (1,000) 15,311
11,200 10,473 (727) 8,852
49,000 64,396 15,396 40,977
5,800 7,748 1,948 5,719
43,250 3,307 (39,943) 340,605
1,380 989 (391) 1,049
40,400 143,346 102,946 73,487
5,100 10,116 5,016 4,955
250 34 (216) 56
6,800 7,100 300 7,466
400 - (400) 1,147
42
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Actual Totals for the Year Ended December 31, 2002)
(Continued)
2003 2002
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Public Safety: (Continued)
Automotive Service:
Supplies and Maintenance $ 3,100 $ 9,091 $ 5,991 $ 14,950
Motor Vehicles 30,000 29,724 (276) 20,127
Emergency Management Service:
Professional Services 600 300 (300) 375
Capital Expenditures 1,000 - (1,000) -
Other 1,450 606 (844) 1,243
Animal Control:
Supplies 100 71 (29) 71
Professional Services 1,000 32 (968) 1,032
Capital Expenditures - - - -
Total Public Safety 838,959 938,060 99,101 1,141,743
Public Works:
Street Maintenance:
Salaries 85,000 76,807 (8,193) 76,621
Benefits 27,157 25,428 (1,729) 25,574
Supplies and Maintenance 16,800 12,619 (4,181) 15,705
Professional Services 100 98 (2) -
Travel and Conferences 200 39 (161) -
Insurance 6,500 8,326 1,826 6,930
Utilities and Telephone 6,100 3,116 (2,984) 3,800
Capital Expenditures 49,000 - (49,000) 27,967
Other 2,050 1,975 ~ (75) 2,208
Industrial Development:
Professional Services - 454 454 637
Ice and Snow Removal:
Salaries 28,100 11,457 (16,643) 14,351
Benefits 7,627 3,030 (4,597) 4,079
Supplies and Maintenance 16,500 12,678 (3,822) 16,311
Professional Services 1,500 280 (1,220) -
Capital Expenditures 30,000 - (30,000) 11,709
Other 4,500 950 (3,550) 1,215
Engineering:
Professional Services 20,000 72,868 52,868 48,378
Street Lighting:
Supplies and Maintenance 250 250 - -
Utilities 30,500 26,577 (3,923) 24,010
Capital Expenditures 1,200 - (1,200) -
Street Cleaning:
Salaries 4,000 3,381 (619) 4,134
Benefits 1,237 1,267 30 1,156
Supplies and Maintenance 6,000 1,747 (4,253) 494
Travel and Conferences 100 - (100) -
Capital Expenditures 2,000 - (2,000) -
Total Public Works 346,421 263,347 (83,074) 285,279
43
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Actual Totals for the Year Ended December 31, 2002)
(Continued)
2003 2002
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Culture and Recreation:
Participant Recreation:
Salaries $ 10,000 $ - $ (10,000) $ 7,924
Benefits 895 - (895) 706
Supplies and Maintenance 3,400 - (3,400) 4,457
Professional Services 1,700 - (1,700) 1,438
Insurance 500 600 100 600
Advertising 100 22 (78) 176
Other 1,000 - (1,000) 669
Ball Park and Skating Rink:
Salaries 2,500 3,059 559 1,936
Benefits 480 535 55 198
Supplies and Maintenance 800 540 (260) 309
Professional Services - - - 236
Utilities 200 652 452 422
Capital Expenditures _ _ _ g82
Other - (75) (75) -
Maintenance Shop:
Supplies and Maintenance 3,900 2,767 (1,133) 4,036
Telephone 1,400 1,215 (185) 1,501
Utilities 3,400 3,322 (78) 1,475
Capital Expenditures 3,000 - (3,000) -
Other 100 84 (16) -
Park Areas:
Salaries 48,700 38,289 (10,411) 43,947
Benefits 13,766 12,207 (1,559) 14,692
Supplies and Maintenance 17,750 12,935 (4,815) 12,850
Professional Services - 900 900 -
Telephone 400 290 (110) 516
Insurance 1,500 1,500 - 1,500
Utilities 2,600 2,000 (600) 2,251
Capital Expenditures 11,700 28 (11,672) 6,080
Other 775 93 (682) 210
Park Board:
Capital Expenditures 8,500 - (8,500) 16,595
Shade Tree Disease Control:
Supplies and Maintenance 75 - (75) -
Travel and Conferences 100 - (100) -
Community Support:
Insurance 300 350 50 350
Other 3,500 3,500 - 6,500
Capital Expenditures _ _ _ _
Total Culture and Recreation 143,041 84,813 (58,228) 132,156
44
CITY OF ST. JOSEPH
Stearns County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Actual Totals for the Year Ended December 31, 2002)
(Continued)
2003
EXPENDITURES: (Continued)
Miscellaneous:
Payments to Township
Other
Total Miscellaneous
Total Expenditures
REVENUES OVER (iJNDER) EXPENDITURES
OTHER FINANCING USES:
Operating Transfers In
Operating Transfers Out
Sale of Surplus Property
Total Other Financing Sources
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES
FUND BALANCE -January 1, as Previously Stated
PRIOR PERIOD ADJUSTMENT (Note 7)
FUND BALANCE -January 1, Restated
FUND BALANCE -December 31
2002
Over
(Under)
Budget Actual Budget Actual
$ - $ - $ - $ 75,399
500 41 (459) 28,242
500 41 (459) 103,641
1,684,056 1,624,149 (59,907) 2,055,879
(2,789) 183,469 186,258 (334,999)
- 15,439 15,439 -
(2,500) (475,095) (472,595) (87,531)
- 4,776 4,776 165,592
(2,500) (454,880) (452,380) 78,061
$ (5,289) (271,411) $ (266,122)
1,442,577
36,156
1,478,733
$ 1,207,322
(256,938)
1,699,515
1,699,515
$ 1,442,577
45
CITY OF ST. JOSEPH
Stearns County, Minnesota
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. They are usually required by statute, charter provision or local
ordinance to finance particular functions or activities of government.
46
CITY OF ST. JOSEPH
Stearns County, Minnesota
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2003
(With Comparative Totals for December 31, 2002)
FUND #
ASSETS:
Cash and Investments
Notes Receivable
Interest Receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE:
Liabilities:
Cash Overdraft
Accrued Liabilities
Deferred Revenue
TOTAL LIABILITIES
Fund Balance:
Reserved for Notes Receivable
Unreserved:
Undesignated
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
150 155 156
TIF 1-4
Economic TIF 1-3 St. Joseph
Development Borgert Development
$ 6,105 $ 2,248 $ -
$ 6,157 $ 2,248 $ -
$ - $ - $ 659
1,702 - -
1,702 - 659
4,455 2,248 (659)
4,455 2,248 (659)
$ 6,157 $ 2,248 $ -
47
210 225 230 232 250
Recreation DARE Lake Wobegon City Revolving Totals
Center Program Trail Beautification Loan 2003 2002
$ 40,095 $ 374 $ 20,356 $ - $ 4,673 $ 73,851 $ 96,637
- - - 47,533 38,168 85,701 -
193 - l04 - 20 369 437
$ 40,288 $ 374 $ 20,460 $ 47,533 $ 42,861 $ 159,921 $ 97,074
$ - $ - $ - $ 60,739 $ - $ 61,398 $ 13,493
- - - 6,977 - 8,679 10,497
- - - 47,533 - 47,533 -
- - - 115,249 - 117,610 23,990
- - - - 38,168 38,168 -
40,288 374 20,460 (67,716) 4,693 4,143 73,084
40,288 374 20,460 (67,716) 42,861 42,311 73,084
$ 40,288 $ 374 $ 20,460 $ 47,533 $ 42,861 $ 159,921 $ 97,074
48
CITY OF ST. JOSEPH
Stearns County, Minnesota
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
FUND #
REVENUES:
General Property Taxes
Tax Increments
Intergovernmental
Miscellaneous:
Investment Income
Contributions
Total Revenues
EXPENDITURES:
Public Safety:
Supplies and Maintenance
Culture and Recreation
Economic Development
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
EXCESS OF REVENUE AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES
FUND BALANCE -January 1
FUND BALANCE -December 31
150 155 156 210
TIF 1-4
Economic TIF 1-3 St. Joseph Recreation
Development Borgert Development Center
$ 29,280 $ - $ - $ -
- 17,781 - -
413 - - 1,119
29,693 17,781 - 1,119
50,238 17,422 659 -
50,238 17,422 659 -
(20,545) 359 (659) 1,119
25,000 - - -
- (15,439) - -
25,000 (15,439) - -
4,455 (15,080) (659) 1,119
- 17,328 - 39,169
$ 4,455 $ 2,248 $ (659) $ 40,288
49
225 230 232 250
DARE Lake Wobegon City Revolving Totals
Program Trail Beautification Loan 2003 2002
$ - $ - $ - $ - $ 29,280 $ -
- - - - 17,781 42,328
- - - 42,000 42,000 -
- 565 (37) 1,142 3,202 2,842
- 9,000 34,367 - 43,367 50,022
- 9,565 34,330 43,142 135,630 95,192
250 - - - 250 250
- 1,200 105,910 - 107,110 41,532
- - - 285 68,604 77,230
250 1,200 105,910 285 175,964 119,012
(250) 8,365 (71,580) 42,857 (40,334) (23,820)
- - - - 25,000 52,222
- - - - (15,439) -
- - - - 9,561 52,222
(250) 8,365 (71,580) 42,857 (30,773) 28,402
624 12,095 3,864 4 73,084 44,682
$ 374 $ 20,460 $ (67,716) $ 42,861 $ 42,311 $ 73,084
50
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF ST. JOSEPH
Stearns County, 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.
51
CITY OF ST. JOSEPH
Stearns County, Minnesota
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2003
(With Comparative Totals for December 31, 2002)
FUND # 319 321 322 324
EDA
Public
General General Project General
Obligation Obligation Revenue Obligation
Bonds Bonds Bonds Bonds
of 1998 of 1999 of 2000 of 2001
ASSETS:
Cash and Investments $ 249,021 $ 82,298 $ - $ 541,390
Cash with Escrow Agent - - - -
Taxes Receivable:
Delinquent 162 648 2,070 -
Special Assessments Receivable:
Deferred 136,420 719,097 - 47,609
Delinquent - 10,038 - -
Accounts Receivable - 69,628 - -
InterestReceivable 1,124 134 - 2,717
Due from Other Governmental Units 19,852 2,997 534 536
TOTAL ASSETS $ 406,579 $ 884,840 $ 2,604 $ 592,252
LIABILITIES AND FUND BALANCE:
Liabilities:
Cash Overdraft $ - $ - $ 4,795 $ -
Accrued Liabilities - - - -
Deferred Revenue 136,582 729,783 2,070 47,609
Total Liabilities 136,582 729,783 6,865 47,609 ~
Fund Balance (Deficit):
Reserved for Debt Service 269,997 155,057 (4,261) 544,643
TOTAL LIABILITIES AND
FUND BALANCE $ 406,579 $ 884,840 $ 2,604 $ 592,252
52
325 327 328 329 331 332
General
General Obligation
General General General Obligation General Improvement
Obligation Obligation Obligation EDA Obligation Crossover
Improvement Certificate of Improvement Revenue Refunding Refunding
Bonds Indebtedness Bonds Bonds Bonds of 1992/1993/ Totals
of 2002 of 2002 of 2003 of 2003 of 1997/2003 1996/2003 2003 2002
$ 942,333 $ 5,072 $ 516,277 $ 3,441 $ 58,035 $ 416,129 $ 2,813,996 $ 3,456,204
- - - - 961,516 - 961,516 -
1,954 - - - 1,081 1,695 7,610 3,852
1,656,513 - 1,141,084 - - 132,095 3,832,818 3,244,027
]6,458 - - - - - 26,496 23,894
- - - - - - 69,628 77,101
7,007 - 5,356 - 517 2,541 19,396 43,289
33,787 239 - - 281 3,753 61,979 88,059
$ 2,658,052 $ 5,311 $ 1,662,717 $ 3,441 $ 1,021,430 $ 556,213 $ 7,793,439 $ 6,936,426
$ - $ - $ - $ - $ - $ - $ 4,795 $ 34,464
- - - - 1,750 - 1,750 9,924
1,674,925 - 1,141,084 - 1,081 133,790 3,866,924 3,271,773
1,674,925 - 1,141,084 - 2,831 133,790 3,873,469 3,316,161
983,127 5,311 521,633 3,441 1,018,599 422,423 3,919,970 3,620,265
$ 2,658,052 $ 5,311 $ 1,662,717 $ 3,441 $ 1,021,430 $ 556,213 $ 7,793,439 $ 6,936,426
53
CITY OF ST. JOSEPH
Stearns County, Minnesota
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
FUND #
REVENUES:
General Property Taxes
Special Assessments
Intergovernmental
Miscellaneous:
Investment Income
Other
Total Revenues
EXPENDITURES:
Debt Service:
Bond Principal
Bond Interest and Fiscal Charges
Miscellaneous
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Proceeds from the Sale of Bonds
Retirement of Long-Term Debt
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES
FUND BALANCE (DEFICIT) -
January 1, as Previously Stated
PRIOR PERIOD ADJUSTMENT (Note 7)
FUND BALANCE -January 1, Restated
RESIDUAL EQUITY TRANSFER
FUND BALANCE (DEFICIT) -December 31
319 321 322 324
EDA
Public
General General Project General
Obligation Obligation Revenue Obligation
Bonds Bonds Bonds Bonds
of 1998 of 1999 of 2000 of 2001
$ 6,441 $ 25,820 $ 82,267 $ -
46,217 135,096 - 47,965
953 3,819 12,148 -
7,372 2,941 759 18,246
60,983 167,676 95,174 66,211
35,000 97,193 45,000 160,000
20,728 58,275 54,435 23,177
30 14,334 - 2
55,758 169,802 99,435 183,179
5,225 (2,126) (4,261) (116,968)
5,225 (2,126) (4,261) (116,968)
264,772 157,183 - 617,972
264,772 157,183 - 617,972
- - - 43,639
$ 269,997 $ 155,057 $ (4,261) $ 544,643
54
325 326 327 328 329 330 331
General General General
General Obligation General General Obligation Obligation General
Obligation Water Obligation Obligation EDA Sewer Obligation
Improvement Revenue Certificate of Improvement Revenue Revenue Refunding
Bonds Bonds Indebtedness Bonds Bonds Bonds Bonds
of 2002 of 2002 of 2002 of 2003 of 2003 of 2001 of 1997/2003
$ 43,849 $ ~ - $ 35,878 $ - $ - $ - $ 43,197
379,702 - - 483,264 - - 59,793
147,239 - 5,498 - - - 6,398
41,495 - (1,819) 28,503 4,194 - 8,025
612,285 - 39,557 511,767 4,194 - 117,413
405,000 - 60,000 - - - 45,000
154,538 - 8,880 30,638 30,881 - 86,120
154 - - - - - -
559,692 - 68,880 30,638 30,881 - 131,120
52,593 - (29,323) 481,]29 (26,687) - (13,707)
- - 19,558 - - - -
- - - 40,504 30,128 - 801,785
- - 19,558 40,504 30,128 - 801,785
52,593 - (9,765) 521,633 3,441 - 788,078
930,534 568,537 15,076 - - (32,666) 230,521
- (568,537) - - 32,666 -
930,534 - 15,076 - - - 230,521
$ 983,127 $ - $ 5,311 $ 521,633 $ 3,441 $ - $ 1,018,599
55
CITY OF ST. JOSEPH
Stearns County, Minnesota
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
FUND #
REVENUES:
General Property Taxes
Special Assessments
Intergovernmental
Miscellaneous:
Investment Income
Other
Total Revenues
EXPENDITURES:
Debt Service:
Bond Principal
Bond Interest and Fiscal Charges
Miscellaneous
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Proceeds from the Sale of Bonds
Retirement of Long-Term Debt
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES
FUND BALANCE (DEFICIT) -
January 1, as Previously Stated
PRIOR PERIOD ADJUSTMENT (Note 7)
FUND BALANCE -January 1, Restated
RESIDUAL EQUITY TRANSFER
FUND BALANCE (DEFICIT) -December 31
332
General
Obligation
Improvement
Crossover
Refunding
of 1992/1993/ Totals
1996/2003 2003 2002
$ 66,998 $ 304,450 $ 241,588
31,840 1,183,877 1,171,543
9, 846 185,901 341,164
21,982 131,698 166,899
- - 122,429
130,666 1,805,926 2,043,623
- 847,193 1,386,924
86,320 553,992 475,209
28 14,548 -
86,348 1,415,733 1,862,133
44,318 390,193 181,490
- 19,558 35,309
739,769 1,612,186 908,492
(1,230,000) (1,230,000) -
(490,231) 401,744 943,801
(445,913) 791,937 1,125,291
868,336 3,620,265 2,494,904
- (535,871) -
868,336 3,084,394 2,494,904
- 43,639 70
$ 422,423 $ 3,919,970 $ 3,620,265
56
CITY OF ST. JOSEPH
Stearns County, 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.
57
CITY OF ST. JOSEPH
Stearns County, Minnesota
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 2003
(With Comparative Totals for December 31, 2002)
FUND #
ASSETS:
Cash and Investments
Accounts Receivable
Interest Receivable
Due from Other Governments
425 428 429
2002 2003
Street Street Maintenance
Improvements Improvements Facility
$ 395,288 $ 588,693 $ -
TOTAL ASSETS
LIABILITIES AND FUND BALANCE:
Liabilities:
Cash Overdraft
Accrued Liabilities
Contracts Payable
Deferred Revenue
Total Liabilities
Fund Balance:
Unreserved:
Undesignated
Total Fund Balance
TOTAL LIABILITIES
AND FUND BALANCE
$ 395,288 $ 588,693 $ -
$ - $ - $ 116,987
- - 449
98,521 239,918 -
98,521 239,918 117,436
296,767 348,775 (117,436)
296,767 348,775 (117,436)
$ 395,288 $ 588,693 $ -
58
430 431 490 501
Northland General
Phase Cloverdale Capital Trunk Totals
Eight Area Improvements Sewer 2003 2002
$ - $ - $ 405,6.44 $ 474,761 $ 1,864,386 $ 1,072,195
- - - 3,850 3,850 -
- - 1,969 2,677 4,646 1,570
- - - - - 57,964
$ - $ - $ 407,613 $ 481,288 $ 1,872,882 $ 1,131,729
$ 3,998 $ 2,501 $ - $ - $ 123,486 $ -
- 614 64 - 1,127 24,054
1,929 - - 3,168 343,536 179,552
- - - 158,745 158,745 -
5,927 3,115 64 161,913 626,894 203,606
(5,927) (3,115) 407,549 319,375 1,245,988 928,123
(5,927) (3,115) 407,549 319,375 1,245,988 928,123
$ - $ - $ 407,613 $ 481,288 $ 1,872,882 $ 1,131,729
59
CITY OF ST. JOSEPH
Stearns County, Minnesota
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
FUND #
REVENUES:
Intergovernmental
Chazges for Services
Miscellaneous:
Contributions
Investment Income
Total Revenues
EXPENDITURES:
Capital Outlay:
Construction Costs
Other
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers Out
Operating Transfers In
Proceeds from the Sale of Bonds
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING
USES
FUND BALANCE -January 1
RESIDUAL EQUITY TRANSFER
FUND BALANCE (DEFICIT) -December 31
424 425 428 429
2002 2002 2003
Street Street Street Maintenance
Improvements Improvements Improvements Facility
$ - $ 37,816 $ - $ -
- 37,816
2,821 593,068 1,732,100 516,527
- - - 256,266
2,821 593,068 1,732,100 772,793
(2,821) (555,252) (1,732,100) (772,793)
- 2,080,875 655,357
_ - 2,080,875 655,357
(2,821) (555,252) 348,775 (117,436)
46,460 852,019 - -
(43,639) - - -
$ - $ 296,767 $ 348,775 $ (117,436)
60
430 431 490 501
Northland General
Phase Cloverdale Capital Trunk Totals
Eight Area Improvements Sewer 2003 2002
$ - $ - $ - $ - $ 37,816 $ 75,091
- - - 424,595 424,595 45,318
- - 4,000 - 4,000 -
- - 13,140 11,207 24,347 17,241
- - 17,140 435,802 490,758 137,650
5,927 3,115 - 21,271 2,874,829 3,898,816
- - 40,128 - 296,394 240,643
5,927 3,115 40,128 21,271 3,171,223 4,139,459
(5,927) (3,115) (22,988) 414,531 (2,680,465) (4,001,809)
- - - (124,800) (124,800) -
- - 430,537 - 430,537 -
- - - - 2,736,232 4,736,151
- - 430,537 (124,800) 3,041,969 4,736,151
(5,927) (3,115) 407,549 289,731 361,504 734,342
- - - 29,644 928,123 193,851
- - - - (43,639) (70)
$ (5,927) $ (3,115) $ 407,549 $ 319,375 $ 1,245,988 $ 928,123
61
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF ST. JOSEPH
Stearns County, Minnesota
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing ofself-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.
62
CITY OF ST. JOSEPH
Stearns County, Minnesota
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 2003
(With Comparative Totals for December 31, 2002)
FUND #
ASSETS:
Current Assets:
Cash and Cash Equivalents
Special Assessment Receivable
Accounts Receivable
Interest Receivable
Total Current Assets
Fixed Assets:
Land and Land Improvements
Treatment Plant and Lines
Buildings
Water Storage Facility
Machinery and Equipment
Less: Accumulated Depreciation
Net Fixed Assets
TOTAL ASSETS
LIABILITIES AND FUND EQUITY:
Current Liabilities:
Accrued Liabilities
Compensated Absences Payable
Current Maturities of Bonds Payable
Total Current Liabilities
603 601 602
Refuse Water Sewer
$ 197,383 $ 992,589 $ 692,313
- - 104,287
32,195 35,739 82,856
918 4,610 2,630
230,496 1,032,938 882,086
- 12,996 4,941
- 3,582,578 5,001,155
- - 517,983
- 1,236,542 -
- 94,528 181,904
- 4,926,644 5,705,983
- (724,656) (1,385,846)
- 4,201,988 4,320,137
$ 230,496 $ 5,234,926 $ 5,202,223
$ 754 $ 8,088 $ 5,575
4,665 24,205 17,806
- 80,000 25,000
5,419 112,293 48,381
Noncurrent Liabilities:
Bonds Payable, Less Current Maturities
TOTAL LIABILITIES
Fund Equity:
Contributed Capital
Retained Earnings (Deficit):
Unreserved
Total Fund Equity
TOTAL LIABILITIES AND
FUND EQUITY
- 660,000 565,000
5,419 772,293 613,381
- 3,704,119 4,968,021
225,077 758,514 (379,179)
225,077 4,462,633 4,588,842
$ 230,496 $ 5,234,926 $ 5,202,223
63
651
Storm
Water
Totals
2003 2002
$ 81,465 $ 1,963,750 $ 1,133,728
- 104,287 -
- 150,790 131,449
393 8,551 9,647
81,858 2,227,378 1,274,824
- 17,937 17,937
- 8,583,733 8,043,524
- 517,983 517,983
- 1,236,542 1,236,542
- 276,432 271,382
- 10,632,627 10,087,368
- (2,110,502) (1,891,625)
- 8,522,125 8,195,743
$ 81,858 $ 10,749,503 $ 9,470,567
$ - $ 14,417 $ 43,498
- 46,676 35,404
- 105,000 -
- 166,093 78,902
- 1,225,000 -
1,391,093 78,902
- 8,672,140 9,570,807
81,858 686,270 (179,142)
81,858 9,358,410 9,391,665
$ 81,858 $ 10,749,503 $ 9,470,567
64
CITY OF ST. JOSEPH
Stearns County, Minnesota
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
FUND #
603 601 602
Refuse Water Sewer
OPERATING REVENUES:
Charges for Services
OPERATING EXPENSES:
Salaries
Benefits
Utilities
Supplies
Sewer Use Rental
Postage
Repairs and Maintenance
Professional Fees
Fees and Tests
Dues and Subscriptions
Refuse Disposal
Depreciation
Insurance
Miscellaneous
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Investment Income
Special Assessments
Other Revenues
Interest Expense
Loss on Disposal of Property
Capital Contributions
Total Nonoperating Revenues (Expenses)
NET INCOME BEFORE
OPERATING TRANSFERS
Operating Transfer In
NET INCOME
RETAINED EARNINGS (DEFICIT) -January 1
PRIOR PERIOD ADJUSTMENT (Note 7)
RETAINED EARNINGS (DEFICIT) -January 1, Restated
RETAINED EARNINGS (DEFICIT) -December 31
$ 168,459 $ 289,985 $ 278,236
19,164 80,093 59,248
5,809 27,128 21,651
- 20,942 11,335
943 16,310 4,969
- - 125,920
508 1,098 593
39 14,322 8,784
- - 495
- 7,535 4,297
- 504 134
106,055 - 560
- 91,645 127,232
- - 450
89 3,666 1,494
132,607 263,243 367,162
35,852 26,742 (88,926)
5,434 27,851 16,604
- - 129,68]
- 20,378 -
- (36,397) (28,212)
- 39,455 60,756
5,434 51,287 178,829
41,286 78,029 89,903
- - 124,800
41,286 78,029 2]4,703
183,791 213,018 (575,951)
- 467,467 (17,931)
183,791 680,485 (593,8822
$ 225,077 $ 758,514 $ (379,179)
65
651
Storm
Water
Fund
$ 80,454
Totals
2003 2002
$ 817,134 $ 646,185
- 158,505 134,237
- 54,588 46,382
- 32,277 28,841
- 22,222 16,546
- 125,920 125,374
- 2,199 1,521
- 23,145 31,301
- 495 -
- 11,832 10,065
- 638 626
- 106,615 109,544
- 218,877 164,346
- 450 10,800
- 5,249 4,639
- 763,012 684,222
80,454 54,122 (38,037)
1,404 51,293 56,722
- 129,681 -
- 20,378 16,615
- (64,609) -
- - (7,907)
- 100,211 -
1,404 236,954 65,430
81,858 291,076 27,393
- 124,800 -
81,858 415,876 27,393
- (179,142) (206,535)
- 449,536 -
- 270,394 (206,535)
$ 81,858 $ 686,270 $ (179,142)
66
CITY OF ST. JOSEPH, MINNESOTA
Stearns County, Minnesota
ENTERPRISE FUNDS
COM$INING STATEMENT OF CASH FLOWS
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
FUND #
CASH FLOWS -OPERATING ACTIVITIES:
Operating Income (Loss)
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Flows -Operating
Activities:
Depreciation
Other Nonoperating Revenues
Change in Assets and Liabilities:
Special Assessments Receivable -Deferred
Accounts Receivable
Due from Other Governmental Units
Accrued Liabilities
Compensated Absences Payable
Total Adjustments
Net Cash Flows -Operating Activities
CASH FLOWS - NONCAPITAL
FINANCING ACTIVITIES:
Operating Transfer from Other Fund
CASH FLOWS -CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of Capital Assets
Principal Payments of Debt
Interest Payments of Debt
Net Cash Flows -Capital and Related
Financing Activities
CASH FLOWS -INVESTING ACTIVITIES:
Investment Income
Net Change in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year,
as Previously Stated
PRIOR PERIOD ADJUSTMENT (Note 7)
Cash and Cash Equivalents, Beginning of Year,
Restated
Cash and Cash Equivalents, End of Year
Noncash Capital and Financing Activities:
Contributed Assets
Total Noncash Capital and Financing Activities
603 601 602
Refuse Water Sewer
Fund Fund Fund
$ 35,852 $ 26,742 $ (88,926)
- 91,645 127,232
- 20,378 129,681
(104,287)
(3,122) (978) (7,768)
- - 2,379
(8,997) (3,196) (16,888)
1,437 6,076 3,759
(10,682) 113,925 ]34,108
25,170 140,667 45,182
- - 124,800
- (3,064) (1,986)
- (70,000) (25,000)
- (36,397) (28,212)
- (109,461) (55,198)
5,841 31,044 18,583
31,011 62,250 133,367
166,372 373,946 593,410
_ 556,393 (34,464)
166,372 930,339 558,946
$ 197,383 $ 992,589 $ 692,313
$ - $ 39,455 $ 60,756
$ - $ 39,455 $ 60,756
67
651
Storm
Water Totals
Fund 2003
$ 80,454 $ 54,122
2002
$ (38,037)
- 218,877 164,346
- 150,059 16,615
- (104,287) -
- (11,868) 47,360
- 2,379 -
- (29,081) (14,047)
- 11,272 3,469
- 237,351 217,743
80,454 291,473 179,706
- 124,800 -
- (5,050) (1,560)
- (95,000) -
- (64,609) -
- (164,659) (1,560)
1,011 56,479 66,902
81,465 308,093 245,048
- 1,133,728 888,680
- 521,929 -
- 1,655,657 888,680
$ 81,465 $ 1,963,750 $ 1,133,728
$ - $ 100,211 $ -
$ - $ 100,211 $
68
CITY OF ST. JOSEPH
Stearns County, Minnesota
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 2003
AMOUNT AVAILABLE AND TO BE PROVIDED FOR
THE PAYMENT OF GENERAL LONG-TERM DEBT:
Amount Available in Debt Service Funds
Amount to be Provided from Special Assessments
Amount to be Provided for Compensated Absences Payable
Amount to be Provided for Retirement of General Long-Term
Debt
TOTAL AVAILABLE AND TO BE PROVIDED FOR
RETIREMENT OF GENERAL LONG-TERM DEBT
GENERAL LONG-TERM DEBT:
Compensated Absences Payable
Bonds Payable
Loans Payable
TOTAL GENERAL LONG-TERM DEBT
2003 2002
$ 3,919,970 $ 3,620,265
3,859,314 3,267,921
60,604 58,005
5,049,683 5,042,974
$ 12,889,571 $ 11,989,165
$ 60,604
12,660,000
168,967
$ 58,005
11,735,000
196,160
$ 12,889,571
$11,989,165
69
I~DV
ICE RN • DtWENTER•VIERE
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH MINNESOTA STATUTES
March 19, 2004
Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the financial statements of the City of St. Joseph, Minnesota, as of and for the
year ended December 31, 2003 and have issued our report thereon dated March 19, 2004.
We conducted our audit in accordance with U.S. generally accepted auditing standards generally
accepted in the United States of America and the provisions of the Minnesota Legal Compliance
Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant
to Minnesota Statutes Section 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 six main categories
of compliance to be tested: contracting and bidding, deposits and investments, conflicts of
interest, public indebtedness, claims and disbursements and miscellaneous provisions. 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, except as
described in the accompanying Schedule of Findings on Compliance with Minnesota Statutes.
This report is intended solely for the information and use of the City's Administration, City
Council, and state and federal awarding and oversight agencies, and is not intended to be, and
should not be, used by anyone other than those specified parties.
KERN, DEWENTER, VIERS, LTD.
St. Cloud, Minnesota
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CITY OF ST. JOSEPH
Stearns County, Minnesota
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES
Year Ended December 31, 2003
CURRENT YEAR FINDING:
Issuance of Administrative Tickets
Minnesota Statute 169.022 provides that cities are to refrain from establishing administrative
penalties for traffic regulation, including speeding, DWI, missing plates or tabs, not wearing
seatbelts and other similar state traffic offenses. During our audit we noted that the City
currently has a resolution authorizing the issuance of administrative penalties. The City has not
yet issued any tickets related to these administrative penalties.
PRIOR YEAR STATE STATUTE FINDING:
During 2002, the City's deposits were undercollateralized.
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