HomeMy WebLinkAboutItem 09.cCOMPREHENSIVE
ANNUAL FINANCIAL REPORT
2010
Year E?ded December 7; 2010
City 0e Lakeville_ Nitfinesota
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT 2010
linnesota
For the Year Ended
December 31 2010
Issued by the Finance Department
Dennis Feller. Finance Director
INTRODUCTORY SECTION
CITY OF LAIZEVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION
Pate
Table of Contents 1 - 3
Elected and Appointed Officials 4
Organizational Structure 5
Letter of Transmittal 6 - 13
Certificate of Achievement 14
FINANCIAL SECTION
Independent Auditors' Report 15 - 16
Management's Discussion and Analysis 17 - 34
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets
Statement of Activities
I
35
36
Fund Financial Statements
Balance Sheet - Governmental Funds 37 - 38
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets 39
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 40 - 41
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 42
Statement of Net Assets - Proprietary Funds 43
Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds 44
Statement of Cash Flows - Proprietary Funds 45
Statement of Fiduciary Net Assets - Agency Fund 46
Notes to Basic Financial Statements 47 - 84
Required Supplementary Information other than MD &A
General Fund - Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budgetary Comparison 85 - 91
Notes to Required Supplementary Information 92
Other Post-Employment Benefits Plan - Schedule of Funding Progress 93
CITY OF LAKEVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2010
TABLE OF CONTENTS
Combining Governrental Funds
Special Revenue Funds (Noumajor)
Combining Balance Sheet
Combining Statement of Revenues,
Debt Service Funds (Nonmajor)
Combining Balance Sheet
Combining Statement of Revenues,
Capital Projects Funds (Nonmajor)
Combining Balance Sheet
Combining Statement of Revenues,
FINANCIAL SECTION (continued)
Cornbinina and Individual Fund Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Expenditures and Changes
Expenditures and Changes
Expenditures and Changes
Special Revenue Funds - Budgetary Comparison Schedules
Communications
Compensation Liability
Environmental Resources
Economic Development
Downtown Special Service District
Agency Fund - Statement of Changes in Assets and Liabilities
Supplemental Information
Schedule of Changes in Bonded Indebtedness
Schedule of Bonded Indebtedness and Annual Interest Payable
Combined Schedule of Bonded Indebtedness
2
in Fund Balances
in Fund Balances
in Fund Balances
Page
94
95
96
67
98
99
100 - 101
102 - 103
104
105
106
107
108
109
110
111 - 120
121 -122
CITY OF LAKEVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2010
TABLE OF CONTENTS
STATISTICAL SECTION
Page
Financial Trends
Net Assets by Category - Government -wide 123
Changes in Net Assets - Governmentai Activities 124
Changes in Net Assets - Business -type Activities 125
Changes in Net Assets - Total Governmental and Business -type Activities 126
Fund Balances - Governmenttl Funds 127 - 128
Changes in Fund Balances - Governmental Funds 129 - 130
Revenue Capacity
Tax Capacity Valuation and Assessor's Taxable Market Value of Taxable Property 131 - 132
Property Tax Rates - Direct and Overlapping Governments 133
Principal Property Taxpayers 134
Property Tax Levy and Collections 135
Debt Capacity
Ratio of Outstanding Debt by Type 136
Ratio of Net Bonded Debt Outstanding 137
Direct and Overlapping Governmental Debt 138
Legal Debt Margin 139
Pledged Revenue Coverage 140
Demographic and Economic Information
Demographic and Economic Statistics 141
Principal Employers 142
Commercial and Industrial Building Permits Issued 143
Operating Information
Employees by Function/Program (Full -Time Equivalent) 144
Operating Indicators by Function 145
Capital Assets Statistics by Function 146
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CITY OF LAKEVILLE, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2010
ELECTED OFFICIALS Term of Office Expires
MAYOR
COUNCIL MEMBERS: Mark Bellows December 31, 2010
Kevin Miller December 31, 2010
Laurie Rieb December. 31 2012
Kerrin Swecker December 31, 2012
APPOINTED OFFICIALS
City Administrator Steven C. Mielke
Finance Director/Treasurer Dennis Feller
City CIerk Charlene Friedges
Holly Dahl December 31, 2010
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June 14, 2011
Dear Mayor, Council Members and Citizens:
6
Mayor, Council Members, and Citizens of the City of Lakeville
20195 Holyoke Avenue
Lakeville, Minnesota 55044
The City provides both leadership and services for the community. Leadership in
community building, together with service delivery, is best constructed on a sarong
financial base. To reflect this stewardship and performance, we hereby submit the
detailed comprehensive annual financial report of the City of Lakeville for the year ended
December 31, 2010. This report was prepared in accordance with U.S. generally accepted
accounting principles (GAAP) as established by the Governmental Accounting Standards
Board and meets the requirements of the Minnesota State Auditor's Office.
This report was prepared by the City's Finance Department and consists of
management's representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of all
information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established internal controls designed to
protect the City's assets from loss, theft or misuse and to provide sufficient reliable
information for the preparation of these financial statements in conformity with GAAP.
Because the cost of intemal controls should not outweigh their benefits, the City's
internal controls have been designed to provide reasonable rather than absolute assurance,
that the financial statements will be free from material misstatements. As management,
we assert that to the best of our knowledge and belief this report is complete and reliable
in all material respects.
The City of Lakeville's financial statements have been audited by Malloy, Montague,
Karnowski, Radosevich & Co., P.A., a professional fine of certified public accountants.
The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the year ended December 31, 2010, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates used by management; and evaluating
the overall financial statement presentation. Based upon the audit, the independent
auditor concluded that there was a reasonable basis for rendering an unqualified opinion
that the financial statements, for the year ended December 31, 2010, are fairly presented
in conformity with GAAP.
Honorable Mayor, City Council, and Citizens
June 14, 2011
The independent auditors' report is presented in the financial section of this report.
Management's discussion and analysis (MD &A) immediately follows the independent
auditor's report and provides a narrative introduction, overview, and analysis of the basic
financial statements. MD &A complements this letter of transmittal and should be read in
conjunction with it.
Profile of Government
The City of Lakeville is a suburban community located 20 miles south of downtown
Minneapolis in the southeast corner of the Twin Cities metropolitan area within. Dakota
County. The City has a land area of 38 square miles and serves a community with a
population of 55,954 residents based on the recent 2010 Federal census.
While portions of the City's 38 total square miles are outside of the Metropolitan Urban
Service Area (MUSA, the area provided sanitary sewer and water service by City), a
large amount of land is still available for development and MUSA expansions to the year
2030 as approved by the Metropolitan Council in conjunction with the City's completion
of the 2008 Comprehensive Plan Update. MUSA expansions will occur in five -year
increment expansions beginning no sooner than 2010 through approximately 2030 that
includes the large area currently designated as the Urban Reserve along Cedar Avenue,
south of Dodd Boulevard. The City has convenient access to the metropolitan area via
four Interstate Highway 35 interchanges.
The City of Lakeville operates under the Mayor - Council form of organization. The
governing City Council consists of the Mayor and four other Council members. The City
Council is responsible, among other things, for passing ordinances, adopting the budget,
appointing members to the various committees and commissions, and hiring the City
Administrator, heads of various departments and City employees. The City Administrator
is responsible for carrying out the policies, directions and ordinances of the City Council
and for overseeing the day -to -day operations of the City. The City Council is elected on a
non - partisan at large basis. The Mayor is elected to serve a two -year term, while Council
members serve four -year staggered terms, with two Council Members elected every two
years.
The City provides its residents and businesses with a full range of municipal services
consisting of public safety (police and fire), public works, parks and recreation, and
general govemment administration. The City also operates two enterprises: utilities
(public water, sanitary sewer and street lights) and off -sale liquor stores. Sewage
treatment and disposal is operated on a regional basis by the Metropolitan Council
Environmental Services (MCES) and refuse collection and disposal are handled on a
private basis through contractual arrangements by City residents with private haulers.
Further information regarding city services can be obtained from the City's website at
www.lakevillemn.gov
The City is financially accountable for the Housing and Redevelopment Authority
(HRA), which is included in the City's financial statement. Additional information on the
HRA can be found in Note 1A. — Summary of Significant Accounting Policies of the
Notes to Basic Financial Statements.
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Honorable Mayor, City Council, and Citizens
June 14, 2011
The annual budget serves as the foundation for the City of Lakeville's financial planning
and control. The budgetary process is outlined in the notes within the required
supplementary information section of this report. The City applies budgetary controls to
ensure compliance with legal provisions of the laws of Minnesota. Budgets are adopted
on a basis consistent with GAAP. Annual appropriated budgets are adopted for the
general fund and special revenue funds. Budget to actual comparisons are provided in this
report for each individual governmental fund for which an annual budget has been
adopted. The general fund budgetary comparison schedules are presented within the
required supplementary information section for governmental funds and the special
revenue funds budgetary comparison schedules are presented in the nonmajor
governmental funds subsection of this report.
Economic Condition and Outlook
The City of Lakeville has, over the past couple years, been confronted with economic and
financial challenges similar to those of our residents and businesses. Revenue reductions
from loss of State payments for property tax relief, building permits, development fees
and investment earnings as well as increased tax delinquencies compelled the City to
adjust to the new realities as a result of these economic challenges. In the process, the
organization has established financial and operational platforms which prepare our
community for the future.
Residential, commercial and industrial growth is at or near historical low levels.
However, as Minnesota's population continues to grow so will the need for housing and
business. The eventual economic recovery will result in a resumption of community
growth and revenues associated with construction such as development fees and building
permits. Lakeville is well positioned to receive that growth when it happens.
RiSIDLF TIAL BUILDING PERMITS
500
430
4 P U
3 SO
300
Total Residential Unity
—M!— Single Gamily
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Honorable Mayor, City Council, and Citizens
June 14, 2011
Commercial and industrial development has been decreasing when compared to previous
year's activities. Recent significant economic development is derived primarily from
companies purchasing or leasing existing vacant facilities.
tom MERC1 R.L- 3N TRYMdL 83rf[.,Es G CONS TR[UCiION
Like many areas of the State, housing values have trended downward in recent years. The
assessors estimated taxable market values for residential market values declined on the
average home by approximately (7.75 %) in 2010. This follows a reduction of (2.7%) in
market value in 2009.
5300,000
5280:000
260,DO0
5240,000)
5221 ,t.
ASSESSORS ESTIMATED MARKET VALUE
Median Value Homesteaded Residential
1
As market conditions continue to improve, housing valuations will respond accordingly.
The state legislature created the Market Value Homestead Credit (MVHC) program in
2001 to provide state -paid property tax relief to owner's homesteaded residential
property. The credit to homeowners reduces a city's property tax receipts by the amount
of the credit allocated to the city. This means the city will receive less than its certified
tax levy from taxpayers. The state makes up the difference by reimbursing the city for
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Honorable Mayor, City Council, and Citizens
June 14, 2011
the city portion of the credit received by property owners. The combination of after -
credit tax receipts and the MVHC reimbursement should equal the city's certified levy.
However, since the implementation of the 2001 Omnibus Tax Law, Lakeville has (a) lost
all of its Local Government Aid (LGA) and (b) has only received its full entitlement of
the MVHC twice in the last nine years. Unless there is a significant improvement in the
State sales and income tax revenues, there is high probability that municipalities such as
Lakeville will remain vulnerable to the loss of its Market Value Homestead Credit for the
foreseeable future. Lakeville has established its financial framework in response to these
structural revenue challenges.
Lakeville's labor market data has proved to be impressive; the City's employment rate
has consistently surpassed state and national averages as reported by the U.S Department
of Commerce Bureau of Economic Analysis as of December 31, 2010.
Civilian Unemployment
Labor Force Rate
City of Lakeville 30,782 6.0%
Dakota County 230,247 6.6%
State of Minnesota 2,964,192 6.9%
United States 1 9.4%
Lakeville's diversified local economy and prime location will enable the community to
be well positioned for a bright future.
Mayor Initiatives
Transit Levy — The City Council initiative on May 5, 2008 provided transit opportunities
for Lakeville residents; accordingly a resolution was approved authorizing the Execution
of an Agreement with Regard to a Transit Service Expansion Plan for the City of
Lakeville. As a result, the Metropolitan Council levied $370,000 to Lakeville properties
in 2009 and approximately $743,000 in 2010. The City Council resolved that the
additional cost of the Metropolitan Council Transit Tax Levy will be offset by budget
reductions for property taxes payable in 2009 and 2010 and reallocating the allowed
maximum amount of Municipal. State -aid (MSA) revenues from a construction account to
the general fund for MSA eligible street maintenance expenses. The re- allocation of
MSA funds will reduce the City's ability to fund future construction projects on MSA -
eligible roadways using MSA funds.
Federal Energy Efficiency and Conservation Block Grant — The City was awarded
$474,100 in Federal Stimulus funds for energy efficiency upgrades to various City
facilities. The upgrades included replacement of the Arts Center HVAC system and new
energy management systems at Fire Stations 2, 3, 4, Senior Center, and Galaxie and
Kenrick liquor stores. Water Treatment Facility upgrades includes replacing a well pump
and dehumidifier. Remaining projects to be completed in 2011 include replacing parking
lot lights with high efficient light emitting diode (LED) lighting at the Central
Maintenance Facility, Fire Station 4 and Water Treatment Facility. All of the grant
approved upgrades will provide significant long -term operating electricity savings.
10
Honorable Mayor, City Council, and Citizens
June 14, 2011
Pavement Management — The City completed a pavement management study through
contractual services of WSB Engineering that provides a determination of which City
streets will need to be reconstructed in the coming years as well as providing an analysis
and recommendations regarding the annual pavement management program relating to
seal coating, cracksealing, patching and overlays of City streets. The 2010 pavement
management project included patching, crack sealing and sealcoating on various City
streets in addition to several street overlays.
Fieldstone Park — The City completed Fieldstone Park in 2010; park amenities include a
baseball field and half-basketball court, playground, picnic shelter, grills, bike rack,
benches and trails, a 21 -stall asphalt parking lot and 39 planted trees.
Infrastructure Improvements — Each year in anticipation of the challenges faced by
population and economic growth the City prepares a five -year Capital Improvement Plan
(CIP). The CIP is a long-range program that identifies the City's infrastructure,
development objectives and allocation of financial resources. It provides policy makers
and the community with a strategic (documented) approach to implementation and
administration of construction projects. The CIP is premised on the assumption that
commercial and industrial development will moderate. The CIP is also premised on the
residential activities as previously discussed. As such, the CIP includes the following
2011 . projects:
Bus Rapid Transit (BRT) Improvements — Dakota County will be constructing a third lane
on Cedar Avenue from 147 Street in the City of Apple Valley to 162' street in
Lakeville. The shoulders on Cedar Avenue from 162° Street to 179 street will be
widened to accommodate transit busses. The City share of financing for road and
landscaping improvements is approximately $558,000 to be funded by municipal state -
aid construction funds. The City was awarded an 80% matching Federal funding for trail
lighting along the route; the City share of costs is $70,000.
2011 Street Improvement Project — The City has identified several areas within the
downtown Lakeville location where the deteriorated condition of existing roadway
surfaces and drainage issues require necessary reclamation of the existing bituminous
pavement and roadway reconstruction. The improvement project costing approximately
$2.4 million will be financed by the issuance of General Obligation Improvement Bonds;
the bonds will be repaid from special assessments charged to benefiting property owners
and levied ad valorem property taxes and other City financing sources.
The South Metro Miracle League Field at King Park will provide a barrier -free
handicapped and wheelchair accessible field with a cushioned, rubberized playing surface
for children with special needs to play baseball. The project will be funded by private and
corporate donations and sponsorships. City staff in cooperation with the Lakeville
Baseball Association, APPRO Development as construction manager and many others
will complete the first construction phase in 2011.
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Honorable Mayor, City Council, and. Citizens
June 14, 2011
Distinguished Budget Presentation Award
The Government Finance Officers Association (GFOA) of the United States presented a
Distinguished Budget Presentation Award to the City of Lakeville, Minnesota, for its
annual budget for the fiscal year beginning January 1, 2010. A governmental unit must
publish a budget document that meets program criteria as a policy document, as an
operations guide, as a financial plan, and as a communications device. This is the second
year that the City of Lakeville has received this prestigious award.
The Distinguished Budget Presentation Awards Program is specifically designed to
encourage state and local governments to prepare and issue budget documents of the
highest quality. Top - quality budget documents are essential if citizens and others with an
interest in a government's finances are to be full and informed participants in the budget
process. Better budget documents contribute to better decision making and enhanced
accountability.
A Distinguished Budget Presentation Award is valid for a period of one year only. We
believe our annual budget for the fiscal year beginning January 1, 2011 continues to
conform to the Distinguished Budget Presentation Awards Program requirements, and we
have submitted it to the GFOA to determine its eligibility for another certificate.
Certificate of Achievement Award
The Government Finance Officers Association (GFOA) of the United States awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of
Lakeville, Minnesota, for its comprehensive annual financial report for the fiscal year
ended December 31, 2009. This is the 22nd consecutive year that the City of Lakeville
has received this prestigious award.
In order to be awarded a Certificate of Achievement for Excellence, a government must
publish an easily readable and efficiently organized comprehensive annual financial
report, and the contents must conform to the program standards. Such reports must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period
of one year only. We believe our current comprehensive annual financial report continues
to conform to the Certificate of Achievement for Excellence program requirements, and
we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledtements
The preparation of this report could not have been accomplished without the professional,
efficient and dedicated services of the entire staff of the Finance Department. We would
like to express our appreciation to all members of the department, with special
recognition to Senior Accountants Brian Kempa, Tom Nesseth, and David Lang.
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Honorable Mayor, City Council, and Citizens
June 14, 2011
We would also like to thank the City Council for its commitment in planning and
implementing the financial operations of the City in a fiscally prudent and progressive
manner.
Respectfully submitted,
Steven Mielke
City Administrator
Dennis Feller
Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lakeville
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, /009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Executive Director
14
President
0:404-0
CERTIFIEDI PUBLIC
A CCOUNTANTS
To the City Council and Residents
City of Lakeville, Minnesota
INDEPENDENT AUDITOR'S REPORT
PRINCIPALS
Thomas M. Montague, CPA
Thomas A. Kamowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Lakeville (the
City) as of and for the year ended December 31, 2010, which collectively comprise the City's basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
the City's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the fmancial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City as of December 31, 2010, and the respective
changes in financial position and cash flows, where applicable thereof, in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated June 14, 2011 on
our consideration of the City's internal control over financial reporting and on our tests of its . compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose
of that report is to describe the scope of our testing of internal control over fmancial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
(continued)
15
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Telephones 952- 545 -0424 • Telefax: 952 -545 -0569 • www.mmkr.com
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, the budgetary comparison information for the General Fund and the Schedule of
Funding Progress for the Other Post - Employment Benefits Plan, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain Limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the Limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
statements and schedules, supplemental information, and statistical section, as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual fund statements and schedules and supplemental information
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated, in all material
respects, in relation to the basic financial statements as a whole. The introductory section and statistical
section have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
76‘67, 1/4.1 4Af.4.0‘04A, ,edutti Id., .
June 14, 2011
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Financial Highlights
CITY OF LAKEVILLE, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
This discussion and analysis presents an overview of the financial activities and financial
position for the City of Lakeville (the "City ") for the year ended December 31, 2010.
Please read the information presented here in conjunction with our letter of transmittal.
• The assets of the City exceeded liabilities by $250,153,589 at the close of the most
recent fiscal year. Of this amount, $18,687,526 (unrestricted net assets) may be
used to meet the government's ongoing obligations to citizens and creditors.
• The City's total net assets decreased by ($573,377), excluding the prior period
adjustment of ($186,003) as described in Note 2 of the Notes to Basic Financial
Statements.
• The City's governmental funds reported combined ending fund balances of
$37,285,261. Of this total amount, $26,214,391 or 70.3% is available for spending
at the government's discretion.
• As of the end of the current fiscal year, the City's unreserved- designated fund
balance for the general fund was $9,385,202 or 47.4% of total general fund
expenditures of $19, 783,178. The unreserved - designated fund balance is adequate
and sufficient, but not excessive.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements are comprised of three
components: 1) government -wide financial statements, 2) fund financial statements, and
3) notes to basic financial statements. This report also contains other required
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner
similar to a private - sector business.
The statement of net assets presents information on all of the City's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating.
17
The statement of activities presents information showing how the City's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes
and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that
are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business -type activities). The governmental
activities of the City include general government, public safety, public works, and parks
and recreation. The business -type activities of the City include the enterprise activities of
the off -sale liquor operation, and utility operation.
The government -wide financial statements include not only the City itself (known as the
primary government), but also a legally separate housing and redevelopment authority
(HRA) for which the City is considered to be financially accountable or for which the
nature and significance of their relationship with the City is such that the exclusion would
cause the City's financial statements to be misleading or incomplete. Financial
information for this component unit is blended within the financial information presented
for the primary government itself.
Fund financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or
objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance - related legal requirements. All of the
funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial
statements. However, unlike the government -wide financial statements, governmental
fund financial statements focus on near -term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government's near -term financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government -
wide financial statements. By doing so, readers may better understand the long -term
impact of the government's near -term financing decisions. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
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The City maintains 24 individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the general fund, general
obligation (debt service) fund, G.O. improvement (debt service) fund, building (capital
projects) fund, and the improvement construction (capital projects) fund, all of which are
considered to be major funds. Data from the other governmental funds is combined into a
single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements following the
financial statements required supplementary information.
The City adopts annual appropriated budgets for its general fund and special revenue
funds. A budgetary comparison schedule has been provided as required supplementary
information for the general fund to demonstrate compliance with this budget. Special
revenue funds budgetary comparison schedules can be found in the nonmajor
governmental funds subsection of the report after the capital projects funds.
Proprietary funds. The City maintains two different types of proprietary funds.
Enterprise funds are used to report' the same functions presented as business -type
activities in the government -wide financial statements. The internal service fund is an
accounting device used to accumulate and allocate costs internally among the City's
various functions.
The City uses enterprise funds to account for its off -sale liquor, and utility (water, sanitary
sewer, and street light) operations. The City uses an internal service fund to account for
its risk management insurance liability program. This service benefits the governmental
and business -type functions; therefore, they have been included within governmental and
business -type activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for each of the enterprise funds, all of which are considered to be major funds
of the City. The internal service fund is presented in a single aggregated presentation in
the proprietary fund financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide
financial statement because the resources of those funds are not available to support the
City's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
Notes to basic financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government -wide and fund
financial statements.
Other information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information. This section
19
includes a budgetary comparison schedule and related notes for the general fund, and a
schedule of funding progress for the other post - employment benefits plan of the City.
The combining statements referred to earlier in connection with nonmajor governmental
funds are presented immediately following the required supplementary information.
Government -wide Financial Analysis
As presented on the following table, the City's governmental and business -type assets
exceeded liabilities by $250,153,589 at the close of the fiscal year ending December 31,
2010. By far the largest portion or 88.4% of net assets is reflected in its investment in
capital assets (e.g. land, buildings and improvements, machinery and equipment,
infrastructure, and construction in process) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the
City's investment in its capital assets is reported net of related debt, it should be noted
that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
Net Assets
(1n vommentalAct:vitiee Raciness -type Activities T°tal
2009 2009
2010 2002 2011 as mets te!t1 201.1 8 rpF.174 d
Cument and other ass ets $ 46,461,732 $ 53,870,342 $ 18,845,524 8 18,132,087 $ 65 ,307,256 $ 72,002,429
Capitalassets 183,829,847 190 ,31 1,798 105,608,103 107,161,216 289,437,950 297,473,014
Totalassets $ 230,291,579 $ 244,182,140 $ 124 53627 $125,293,303 $354,745,206 8369475,443
Current and other liabilities $ 4,249,874 $ 5,826,195 $ 1,827,753 $ 1,702,014 $ 6,077,627 $ 7,528,209
Long-term liabilities 94439,902 106,902,995 4,074,088 4,317,273 98,513,990 111,220,268
Total liabilities 98,689,776 112,729,190 5,901,841 6,019287 104,591,617 118 74 8,477
Net assets:
Invested in capital as sets
net ofielnted debt 119,249,751 119, 699, 102 10 1,893,442 103,150,022 221,143,193 222,849,124
Restricted 10,027,737 1,542,926 295,133 295,133 10 ,322,870 10,838,059
Unrestricted 2,324 ,315 1,210,922 16,363,211 15,828,861 18,687 ,526 17,039,783
Totalnetassets 131,601,803 131,452,950 118,551,786 119,274,016 250,153,589 250,726,966
Total liabilities and
net assets $ 230,291,579 S 244,182,140 $ 124,453,627 8125,293,303 $354,745,206 8369475443
The City's total restricted net assets of $10,322,870 comprise 4.1% of total net assets at
the close of the fiscal year ending December 31, 2010. These assets are subject to external
restrictions on how they may be used.
The 2010 remaining balance of $18,687,526 (7.5% of total net assets), in unrestricted net
assets may be used to meet the government's ongoing obligations to citizens and
creditors. Certain balances within unrestricted net assets have internally imposed
designations or limitations, which may further limit the purpose for which such net assets
may be used.
20
Change in net assets. The City's 2010 total net assets during the current fiscal year
decreased by ($573,377) as shown in the following table. This decrease is primarily
attributed to economic conditions, a decrease in community growth, moving the City's
street light operation from the general fund to the enterprise utility fund, and the City's
cost share funding of the Interstate Highway 35 /County Road 70 Interchange project. The
Project (completed in 2009) has approximately $2.8 million remaining in unsettled right -
of -way land acquisitions; these remaining costs will be paid subsequently as purchase
agreements are settled. Additional details that account for the change in net assets are
provided in the following analysis of the governmental and business -type activities.
Change in Net Assets
Governmental Activities Business -type Activities Total
2009 2009
2010 2009 2010 as restated 2010 as restated
Revenues
Program revenues
Charges for services $ 6,011,951 5 6,385,407 S 11,044,712 5 11,3)3,451 $ 17,056,663 S 17,488,858
Operating grants and contributions 2,319,0t4 2255,596 7,026 7,026 2,326,045 2 ,262,622
Capital grants and contributions 3,314,841 2971,227 1,016,766 158,252 4,331,607 3,129,479
General revenues
Property taxes 24,369,009 23,912.316 24,369,009 23,912;118
Investment income 340,336 463,092 150,632 227.055 490,968 690,147
Total revenues 36,355,156 35,987,640 12,219,136 11,495,784 48,574,292 47,483
Expenses
General government 5,248,677 5,916,590 5,248,677 5,916,590
Public safety 10,858,447 9,726,394 31,858,447 9,726,394
Public works 12,97, 868 12,866,216 12,197,868 12,866 ,216
Parks and recreation 4,775,015 4,774,745 4,775,015 4,774,745
Interest on tong -term debt 3,740,076 3,994,790 3,740,076 3,994,790
Liquor 2,424,290 2,437,654 2,424,290 2,437,654
Utility 9,903,296 9,086,172 9,903,296 9,086,172
Total expenses 36,820083 • 37,278,735 2.327,586 11,523,826 49,147,669 48,802,561
Change in net assets
before transfers (464,927) (1,291,095) (108,450) (28,042) (573,377) (1,39,137)
Transfers
Change in net assets
613,780 (347,807) (613,780) 347
148,853 (1,638,902) (722 ,230) 39,765 (573 ,377) (1,319,137)
Net assets - beginning as restated 131,452,950 133,091,852 119,274,016 1)5,954,251 250,726,966 252,046,103
Net assets - ending S 131,601,803 8 131,452950 5 118,551,786 $ 119,274,016 5254 5250,,
Prior period adjustment. The City corrected the enterprise liquor fund cost of sales for
the fiscal year ended December 31, 2009. The 2009 cost of sales were understated
causing net assets as of January 1, 2010 to be overstated; therefore business -type 2009
charges for services has been reduced in the amount of ($186,003) to reflect this
correction as shown above.
21
Governmental activities. Governmental activities change in net assets before transfers
decreased by ($464,927). As previously discussed, this decrease is primarily due to
economic conditions, moving the street light operation, and costs related the Interstate
Highway 35 /County Road 70 Interchange reconstruction project. The governmental
revenue reduction in charges for services is directly related to economic conditions and
the reduction in investment income is directly related to prevailing investment market
conditions. The City continues to respond to these economic challenges by reducing
operating expenses, and deferring capital acquisitions.
Revenues — The City's 2010 total revenues for governmental activities increased by
$367,516. Charges for services decreased a total of ($373,456) primarily due to
accounting for street light revenue in the enterprise utility fund beginning in 2010 and
stagnant economic conditions. A summary of the various increases (decreases) are shown
as follows:
Charges for services
Licenses and building permit fees
Connection and area charges
Street light revenue
Park dedication fees
Other
Total charges for services
22
2010
$ 1,565,028
998,048
296,045
3,152,830
$ 6,011,951
Operating grants and contributions experienced an overall increase of $63,423. The
increase is comprised of Minnesota state -aid provided for street maintenance and street
revenue bonds related to the reconstruction of Cedar Avenue and reconstruction of
Interstate Highway 35. interchanges at County Roads 46 and 70. In addition, the City will
begin receiving annual payments from the Federal government related to debt issued for
the Interstate Highway 35 /County Road 70 interchange project; the payments are 35% of
the annual interest debt service requirements for the Street Reconstruction Bonds of 2009.
The City contracts public safety dispatch services with Dakota Communication Center; as
a result of lower operating costs the City received a one time rebate of $196,587 in 2010,
The 2009 ALF Ambulance payment was a one time asset liquidation distribution. A.
summary of the various operating grants and contributions are shown as follows:
Increase /
Operating grants and contributions 2010 2009 (Decrease)
State -aid for street maintenance
State -aid for street revenue bonds
Federal street reconstruction bonds payment
Dakota Communication Center rebate
ALF Ambulance distribution
Other grants, contributions and donations 801,669
Total operating grants and contributions $ 2,3 19,019
$ 373,802 $
869,314
77,647
196..587
Increase /
2009 (Decrease)
$ 1,603,909 $ (38,881)
1,069,160 (71,112)
558,572 (558,572)
108,245 187,800
3,045,521 107,309
$ 6,385,407 $ (373,456)
234,139 $ 139,663
833,879 35,435
77,647
196,587
409,611 (409,611)
777,787 23,882
$ 2,255,416 $ 63,603
Capital grants and contributions increased by $343,614. The City received $1,564,187 in
municipal state -aid during 2010; these funds will be appropriated towards various
construction projects over the next five years. The City was awarded a Federal Energy
Efficiency Conservation Block grant late 2009; the grant provides funding for energy
efficiency upgrades to several City facilities that will yield significant long -term operating
electricity savings. The 2010 amount includes an upgrade to the Arts Center HVAC
system, the remaining grant funds will be expended in 2011. The HolyokelHighview
Avenue reconstruction project and Downtown Lakeville Market Plaza project were both
completed in 2009. Special assessment receipts continue to decline as residential
development remains stagnant and due to property owners prepaying their outstanding
assessment obligations to the City. Contributed infrastructure from private hind
developers decreased by ($125,635); the infrastructure consists of street, storm sewer, and
park and trail capital assets. The summary of capital grants and contributions is shown as
follows:
Capital grants and contributions
Minnesota municipal state -aid
City facilites energy efficiency grant
Holyoke/Highview Avenue reconstruction grant
Downtown Lakeville Market Plaza grants
Special assessments
Contributed infrastructure from developers
Other grants and contributions
Total capital grants and contributions
General revenues
Property taxes
Investment income
Total general revenues
23
2010
$ 1,564,187
172,360
612
145,296
1,217,011
215,375
$ 3,314,841
Increase /
2009 (Decrease)
811,509
209,258
420,115
1,342,646
187,699
$ 2,971,227
Increase /
2010 2009 (Decrease)
$ 24,369,009 $ 23,912,318 $ 456,691
340,336 463,092 (122,756)
$24,709,345 $ 24,375,410 $ 333,935
$ 1,564,187
172,360
(810,897)
(209,258)
(274,819)
(125,635)
27,676
$ 343,614
Property tax revenue increased $456,691 or 1.9% primarily due to a special levy to
recover the loss of State -aid (Market Value Homestead Credit). Investment income
earnings decreased by ($122,756) or (26.5 %) due to low yields consistent with prevailing
market conditions.
A summary of 2010 revenues by source for governmental activities are shown as follows:
Expenses — The City's 2010 total governmental activities expenses (before depreciation
on capital assets and interest on long -term debt) decreased by ($348,534) or (1.4 %). Total
governmental activities expenses decreased by ($458,652) or (1.2 %), shown as follows:
Governmental activities expenses
General government
Public safety
Public works
Parks and recreation
Total before depreciation and interest
Depreciation on capital assets
Interest on long -term debt
Total governmental activities expenses
by Sai Some - Govisimlentid Activities
Total Revenues $34355,156
Canes far
Services $6,011,951
(16.5%)
24
2010
$ 5,015,406
9,896,219
6,227,837
3,149,253
24,288,715
8,791,292
3
$ 36,820,083
Cana
Coniribudaus Restricted
-
$5,6333950 ( 1 - 5394 0
Increase /
2009 (Decrease)
$ 5,613,350 $ (597,944)
8,963,562 932,657
7,008,196 (780,359)
3,052,141 97,112
24,637,249 (348,534)
8,646,696 144,596
3,994 (254,714)
$ 37,278,735 $ (458,652)
A summary of 2010 expenses for governmental activities are shown as follows:
Public Wain
516,227,837 (
Depredation
$8,791,292 (23.9
Noises by - Gown:mutat Adivide.s
Total Expenses r36
General
Govern/oat
SACA5AOSf13.6
25
Peddle Safety
S9,896,219 A)
,&& on ry Debt
3' ,74 076
Fads and
Recreation
$3149gi
( 8-6 %)
Following are explanations of various increases and (decreases) in expenses by
governmental function as shown above.
General government expenses decreased by ($597,944) or (10.7 %); this 2010 decrease is
attributed to (a) the final completion of personnel reductions made in 2009, and (b) the
loss sustained in the premature deterioration of a City roadway segment prior to its
expected life cycle in 2009; these reductions are explained in further detail as follows.
o The City reduced personnel staffing levels for two consecutive years beginning in
2008 and ending in 2009. The final staff reductions made in April 2009 included
eliminating four full-time positions and reducing the hours of four full-time
positions to part -time status at a 2010 cost reduction of approximately ($178,000).
o During 2009, the City reclaimed Holyoke/Highview Avenue from Dodd Boulevard
to Heritage Drive. Prior to the reclamation, the road segment undepreciated book
value was expensed in the general government function in 2009; this loss
combined with gains recognized on the sale of several capital assets created a
2010 expense reduction of ($420,000). Reclamation projects of this type occur
infrequently unless a particular road requires reclamation prior to reaching its
normal life expectancy.
Public safety expenses increased by $932,657 or 10.4 %; this overall 2010 increase is
comprised of several components that include personnel increases attributed to cost of
living adjustments, step increases and related benefits through collective bargaining union
contracts of $281,000; motor fuels $29,000; Dakota Communication Center dispatch
services $70,000; and the replacement of firefighter self-contained breathing apparatus's
and other items for $553,000.
Public works expenses decreased by ($780,359) or (11.1 %); this 2010 decrease is
primarily attributed to moving the street light operation from the general fund street
department to the enterprise utility fund ($586,000), and a decrease in remaining right -of-
way costs associated with the Interstate Highway 35 and County Road 70 interchange
reconstruction project ($357,000). The street department incurred additional expenses in
2010 related to personnel cost of living adjustments, step increases and related benefits
through union contracts, and expenses related to increased motor fuel costs and unusually
frequent winter storms and associated increase in overtime and road de- icing chemicals
totaling $163,000.
Parks and recreation expenses increased slightly by $97,112 or 3.2 %; this 2010 increase
is primarily due to personnel cost of living adjustments, step increases and related
benefits through union contracts and an increase in motor fuel costs.
Business -type activities. Business -type activities decreased the City's 2010 total net
assets by ($722,230). Key elements of the decrease in net assets along with a comparison
of revenues, expenses, and changes in net assets during fiscal years 2010 and 2009 are
shown as follows:
Revenues
Charges for services
Liquor
Utility
Operating grants and contributions
Liquor
Utility
Capital contributions
Liquor
Utility
Investment earnings
Total revenues
Expenses
Liquor
Utility
Total expenses
Change in net assets before transfers
Transfers
Change in net assets
Net assets - beginning as restated
Net assets - ending
Business -type Activities
26
2009 Increase /
2010 as restated (Decrease)
$ 3,612,321 $
7,432,391
3,762
3,264
17,0507
999,716 z
150,632
12,219,136
2,424,290
9,903,296
12,327,586
(108,450)
(613,780)
(722,230)
1 I9,460,016
$ 118,737,786
3,611,777
7,491,674
3,762
3,264
158,252
227,055
11,495,784
2,437,654
9,086,172
11,523,826
(28,042)
347,807
319,765
118,954,251
$ 119,274,016
$ 544
(59,283)
17,050
841,464
(76,423)
723,352
(13,364)
817,124
803,760
(80,408)
(961,587)
(1,041,995)
505,765
$ (536,230)
The City's 2010 business -type total revenues increased by $723,352 or 6.3 %; the various
revenue increase and (decrease) components are discussed in detail in the following
paragraphs.
o The liquor fund 2010 charges for services (sales less cost of goods sold) increased
slightly from 2009 (as restated). The 2010 cost of goods sold as a percentage of
sales were 75.5 %, as compared with 2009 of 75.3 %.
o The overall utility revenue charges for services decreased by ($59,283). This
overall decrease is represented by a water revenue decrease of ($942,000), sanitary
sewer revenue increase of' $364,000, street light revenue increase of $513,000, and
other increase of $6,000. The water decrease is due to a reduction in 2010
consumption as a result of changes in weather patterns and its impact on irrigation
and a water base rate and gallonage rate reduction. The sanitary sewer increase is
due. to a 2010 rate increase. The street light revenue increase is a result of moving
the City's street lighting operation from the general fund to the utility fund.
o The liquor fund and utility fund experienced a total increase of $858,514 in capital
contributions; of this increase $802,573 represents infrastructure water and sanitary
sewer capital assets contributed from land developer improvement projects, and
$55,941 in a Federal Energy Efficiency Conservation Block grant awarded to the
City for energy efficiency upgrades to the water treatment facility and owned liquor
store buildings. City improvement project infrastructure assets contributed to the
utility fund of $37,117 are within the net transfer amount of ($613,780) on the
Statement of Activities. The total amount of contributed infrastructure assets
received by the utility fund varies yearly depending on the rate at which land
developers and City contractors are able to install the operational infrastructure,
(i.e., watermain and sanitary sewer lines).
o Investment earnings decreased ($76,423) or (33.7 %) due to low yields consistent
with prevailing market conditions.
The City's 2010 business -type total expenses increased by $803,760 or 7.0 %. The various
increases and (decreases) from 2009 are shown as follows:
Business -tvne activities expenses
Personnel services
Commodities
Other charges and services
Sanitary sewage treatment and disposal
Depreciation on capital assets
Interest, fiscal charges, bond premium (net)
Total increase /(decrease)
27
Increase/(Decrease) From 2009
Liquor Utility
Fund Fund Total
$ 25,394 $ 112,038 $ 137,432
5,118 (20,422) (15,304)
(28,320) 554,998 526,678
180,257 180,257
2,612 (9,747) (7,135)
(18,168) (18,168)
$ (13,364) $ 817,124 $ 803,760
o The utility fund personnel services increase of $112,038 is related to personnel cost
of living adjustments, step increases and related benefits through union contracts,
and employee transitions.
o The utility fund other charges and services increased by approximately $555,000.
The increase is attributable to the City's utility customer water meter replacement
program costing $297,000, wells 12 and 14 rehabilitation $122,000, and water
tower painting and maintenance $1 36,000.
o Metropolitan Council Environmental Services (MCES) charges for sanitary sewage
treatment and disposal increased by $180,257 or 6.8 %. The overall 2010 increase is
comprised of an MCES rate increase.
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance
with finance - related legal requirements. Some funds are required statutorily while others
are established internally to assist management in accounting for certain activities.
Governmental funds. The focus of the City's governmental funds is to provide
information on near -term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $37,285,261. Of this amount, $26,214,391 or 70.3% of this
combined ending fund balance constitutes unreserved fund balance that is available for
spending at the government's discretion. The remaining fund balance is reserved for (a)
debt service of $ 10,027,737, (b) outstanding contractual obligations of 8208,600, (c)
prepayments of $10,726, and (d) other restricted purposes of $823,807.
The general fund is the chief operating fund of the City. At the end of the current fiscal
year, the fund balance was $9,395,928. The 2010 net change in fund balance of
($1,810,797) surpassed the final adopted budget net change in fund balance of
($3,074,121) by $1,263,324.
The G.O. obligation (debt service) fund balance decreased by ($402,985). The City levies
the required property taxes collected in the current year to meet the bonded debt service
requirements in the following year. The change in fund balance may fluctuate yearly
based on fluctuating principal and interest requirements of existing debt and that of new
debt issuance.
28
The G.O. improvement (debt service) fund balance decreased by ($4,574,779). On
December 30, 2009, the City in a refunding transaction issued the Improvement
Refunding Bonds of 2009 B for $4,250,000; the bond proceeds with available funds were
used to pay the callable principal balance of Improvement Bonds 2000 A and 2001 A on
February 1, 2010 . for $4,285,000.
The building (capital projects) fund balance increased by $502,317. The City per
contractual loan agreement with Life Time Fitness received a 2010 partial payment of
$540,067 for a land sale transaction in 2006; the remaining balance of $825,000 will be
due in 2013.
The improvement construction (capital projects) fund is the primary fund used to account
for major infrastructure improvement projects that require debt issuance for financing
purposes. The activity in this fund may fluctuate from year to year depending on the
demand for infrastructure expansion. Large projects may take several years to complete
such as the interstate highway interchange and bridge reconstruction projects. The fund
balance decreased by ($925,915) due to funding the City's remaining share of right -of-
way acquisitions costs of the Interstate Highway 35 /County Road 70 Interchange project.
The project (completed in 2009) has approximately $2.8 million remaining in unsettled
right -of -way land acquisitions; these costs will be paid subsequently as purchase
agreements are settled.
Other Post - Employment Benefits (OPEB)
In accordance with the provisions of the Governmental Accounting Standards Board
(GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Post -
employment Benefits Other Than Pensions, an actuarial valuation was required to be
computed and reported for the City's post - employment health insurance benefits provided
to eligible employees through the City's Other Post - Employment Benefits Plan. The net
OPEB obligation and corresponding expense for governmental activities is reported
within the government -wide financial statements. The net OPEB obligation liability and
corresponding expense for enterprise funds are recorded within those funds. Refer to Note
17. -- Other Post- Employment Benefits (OPEB) Plan, of the Notes to Basic Financial
Statements for complete information concerning the City's OPEB Plan.
General Fund Budgetary Highlights
The City Council amended the originally adopted budget on two occasions during 2010.
The amendments to the originally adopted budget were for economic and various routine
reasons. A schedule of revenues, expenditures and changes in fund balances — budgetary
comparison is disclosed in the required supplemental information section of this report.
29
With the exception of the street department, all general fund departments expended their
2010 budget appropriations at or below the final adopted budget. A summary of general
fund revenues, expenditures, other financing sources (uses), variance with final budget,
and net change in fund balance is as follows:
Revenues
Property taxes
Licenses and permits
Intergovernmental
Charges for services
Fine's
Investment income
Donations
Miscellaneous
Total revenues
Expenditures
Personnel services
Commodities
Other charges and services
Capital outlay
Other
Total expenditures
Other financing sources (uses)
Net change in fund balance
General Fund
Budget As
Originally Final
Adopted Budget
$ 16,098,812 $ 16,098,812
902,341 902,341
1,089,624 1,123,056
1,291,579 1,295,141
273,055 273,055
104,096 104,096
55,251 60,396
48,358 48,358
19,863,116
30
19,905,255
Actual
$ 16,271,094
992,379
1,137,358
1,415,441
295,496
96,958
53,361
58,254
20,320,341
14,514,863 14,229,882
1,642,828 1,516,993
4,444,539 4,000,138
27,408 36,165
Variance
With Final
Budget
$ 172,282
90,038
14,302
120,300
22,441
(7,138)
(7,035)
9,896
415,086
14,397,824
1,620,339
4,399,327
27,408
309,069
20,753,967 20,629,638 19,783,178 846,460
284,981
125,835
444,401
(8,757)
668,238 (2,349,738) (2,347,960) 1,778
$ (222,613) $ (3,074,121) $ (1,810,797) $ 1,263,324
The 2010 actual general fund revenues were over final budget by $415,086 and
expenditures were under final adopted budget by $846,460. Other financing sources
(uses) were slightly under final budget by $1,778. The general fund actual net change in
fund balance surpassed final budget by $1,263,324. The following is a brief summary
explanation of the various budgets to actual variances:
o Property taxes variance of $172,282 is due to collecting greater than anticipated
prior year's delinquent property taxes.
o Licenses and permits variance of $90,038 is due to greater than anticipated on -sale
liquor licenses issued and building permit fees earned by the building inspections
department. Residential building permits issued declined slightly as evidenced by
140 and 181 residential building permits issued in 2010 and 2009, respectively.
o Intergovernmental variance of $14,302 is due to greater than expected Federal
grants for public safety sober driving enforcement activities.
o Charges for services variance of $120,300 is due to several reasons such as public
safety activities related to sale of forfeited assets from violations due to intoxicated
drivers for $39,000; public works engineering fees related to improvement projects
exceeding budget by $49,000; and recreation and Arts Center program fees
exceeding budget by $32,000.
o Fines variance of $22,441 is due to greater than anticipated collection of traffic
related ticket fines.
o Investment income variance of ($7,138) is due to a slower than anticipated
momentum in earnings expectations. The City's Management employs prudent
investment practices and cash management techniques to maximize investment
income potential while protecting the City's treasury.
o Donations and miscellaneous revenues experienced slight variances of ($7,035)
and $9,896, respectively.
o Personnel variance of $284,981 is mainly due to budget savings related to efficient
management and reduction of staff overtime, reductions due to routine employee
turnover and retirements, and personnel costs related to reduced fire emergency
calls. These budget savings include all applicable benefits.
o Commodities variance of $125,835 is attributed to several reasons such as motor
fuels savings of approximately $69,000 and budget trimming combined with
cooperative purchasing agreements and the exercising of prudent and efficient
purchasing practices by staff yielded significant budget savings of approximately
$56,000.
o Other charges and services variance of $444,401 is attributed to significant savings
in building electricity and natural gas due to energy prices not increasing as the
budget anticipated for savings of $192,000. The remaining budget variance of
approximately $252,000 is also due to budget trimming and the use of the
competitive bidding process to ensure the City receives the best value for its
money. City staff is committed to providing the highest quality of services in a
cost - effective, innovative and responsible manner.
o Capital outlay variance of ($8,757) is due to purchases related to the City's
laserfiche weblink program required in 2010.
31
Capital Asset and Debt Administration
Capital assets. The City's capital assets for governmental and business -type activities as
of December 31, 2010 are $289.4 million (net of accumulated depreciation). This amount
represents a decrease (including additions, deletions, and depreciation) of approximately
($8.0) million from 2009. The investment in capital assets including land, historical
treasures, buildings, machinery and equipment, other improvements, infrastructure, and
construction in process are shown as follows:
Capital Assets
(net of depreciation)
Governmental Business -type
Activities Ac tivities Total
Land $ 21,574,219 $ 1,800,456 $ 23,374,675
Historical treasures 100,000 100,000
Bugs and improvements 44,756,757 20,028,891 64,785,648
Machinery and equipment 6,463,327 1,079,973 7,543,300
Other improvements 2,417,080 2,417,080
Infrastructure
Streets 60,541,123 60,541,123
Storm sewer 38,601,176 38,601,176
Parks 8,886,489 8,886,489
Water 47,258,688 47,258,688
Sanitary sewer 35,366,196 35,366,196
Construction in process 489,676 73,899 563,575
Total $ 183,829,847 $ 105,608,103 $ 289,437,950
The City's 2011 adopted budget provides funding for $12.0 million in infrastructure
capital assets, public buildings improvements and upgrades, and equipment capital assets
such as vehicle replacements for public safety and public works, and technology
equipment. Refer to Note 4. - Capital Assets, of the Notes to Basic Financial Statements
for additional information.
Debt administration. At the end of the current fiscal year, the City of Lakeville had total
bonded debt outstanding of $93,270,000, which is a decrease of ($12.9 million) compared
to the prior year. The decrease is due to principal bond maturities of ($7.625 million),
payments on four bonds issues called of ($7.955 million) and the issuance of the State -aid
Street Refunding Bonds of 2010 A for $2.680 million.
The City manages its debt structure by utilizing approaches that take full advantage of
financial trends and emerging economic conditions in municipal bond markets; as such
the City issued the State -aid Street Refunding Bonds of 2010 A to call the State -aid Street
Bonds of 2000 C on April 1, 2010 for $2,730,000. The refunding transaction yielded a net
savings to the City of $426,700 with a present value economic gain of $378,275.
32
Refer to Note 7. — Long -Term Debt, of the Notes to Basic Financial Statements for
additional information about the City's governmental and business -type long -term debt
activity. The City's outstanding bonded obligation debt as of December 31, 201.0 is
shown as follows:
Outstanding Debt
Gov ernmental Bonds and Business -type Bonds
Economic Conditions and Next Year's Budget
Balance Balance
January 1 Issued Redeemed December 31
Governmental bonds
General obligation bonds
Equipment certificates $ 3,010,000 $ $ 1,435,000 $ 1,575,000
Park 2,260,000 340,000 1,920,000
Capital improvement 28,810,000 570,000 28,240,000
Street reconstruction 24,025,000 850,000 23,175,000
G.O.Irnprovement 12,785,000 6,080,000 6,705,000
Taxincraement 4,905,000 1,315,000 3,590,000
State -aid street revenue 7,075,000 2,680,000 3,305,000 6,450,000
Water revenue 6,735,000 1,020,000 5,715,000
Arena revenue 1,545,000 115,000 1,430,000
HRA lease revenue 11,035,000 255,000 10,780,000
Total governmental 102,185,000 2,680,000 15,285,000 89,580,000
Business -type bonds
Liquor revenue 3,985,000 295,000 3,690,000
Total bonds payable $ 106,170,000 $ 2,680,000 $ 15,580,000 $ 93,270,000
The City of Lakeville's general obligation bond rating as of December 31, 2010 is "Aal"
as rated by Moody's Investors Service.
State statutes limit the amount of general obligation debt a Minnesota city may issue to
3% of total assessor's taxable market valuation. The City has $57,282,684 of net bonded
debt, which is subject to the $172,098,066 current debt limitation, thereby resulting in a
legal debt margin of $114,815,382. Refer to the Statistical Section of this report for a
detailed computation of the City's legal debt margin.
The City of Lakeville continues to adjust to the realities of the economy, legislative taxing
constraints, and the conditions in the housing and fmance industries. As such, the primary
objectives in developing the 2011 budget was to achieve the service delivery expectations
of residents and businesses, assure efficient and effective delivery of services, implement
an attainable long term capital and financial operating plan and establish sustainable
revenue structures to the extent reasonably possible. These objectives position the City
with the stability needed to meet the challenges of 2011 and beyond.
33
Some of the salient issues addressed in the 2011 budget are as follows:
➢ New programs and services are considered only if they are self - supporting through
user fees. The Police Department citizen academy, for example, will proceed only if
it can be financed with user fees and/or donations.
➢ Reduction in services for non - essential low priority services. The Forestry function
is being reduced in scope. Citizen inquiries and requests for forestry related services
will be referred to private sector and County or State resources. The City oak wilt
grant program will be terminated.
➢ The Police Department provides for two part -time police records administrative
assistants. The Fire Department will recruit 15 volunteer firefighters to replace those
who have left the department due to retirements and resignations. The recruitment
process will bring the number of volunteer firefighters to 85; the department is
authorized to have up to 90 firefighters.
➢ Generally speaking, all other programs and services will remain at the levels
established with the 2010 budget. None of the services reduced or eliminated in
previous years are budgeted to be reinstated.
➢ The revenue structures, including fees for services and property taxes, are evaluated
each year to ensure that there are adequate financial resources to support the budget.
The only changes in the 2011 fee structure are those related to utility services for
water, sanitary sewer, surface water management and street lights. The fee changes
are a result of cost increases for Metropolitan Council charges for treatment of
sanitary sewer effluent, street lighting electricity, environmental resources
operations and water treatment facility debt service requirements.
A The City Council's fiscally prudent policies combined with operational efficiencies
results in a ($5,000) tax decrease for the coming year. The 2011 tax levy takes into
consideration the City Council directive to increase the levy for the loss of the 2011
Market Value Homestead Credit ($788,027).
Requests for Information
This financial report is designed to provide a general overview of the City of Lakeviile's
finances for all those with an interest in the government's finances. Questions concerning
any of the information provided in this report or requests for additional financial
information should be directed to the City of Lakeville Finance Department at 20195
Holyoke Avenue, Lakeville, Minnesota 55044, (952) 985 -4400, or email request to
dfeller@ci.lakeville.mn.us.
34
BASIC FINANCIAL STATEMENTS
CITY OF LAKEVILLE, MINNESOTA
STATEMENT OF NET ASSETS
DECEMBER. 31, 2010
ASSETS:
Cash and investments
Receivables
Internal balances
Inventory
Prepaid items
Unamortized bond issuance costs
Restricted assets (temporarily):
Cash and investments
Investments held by trustee
Capital assets
Non - depreciable
Depreciable, net
Total capital assets
LIABILITIES:
NET ASSETS:
Total assets
Salaries, accounts, contracts, interest, and deposits
Unearned revenue
Non- current liabilities
Due within one year
Due in more than one year
Total liabilities
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total net assets
See accompanying notes to basic financial statements.
35
Governmental Business -type
Activities Activities
$ 36, 751,437
7,747,727
(177,089)
214,407
10,726
984,015
930,509
22,163,895
161, 665,952
183,829,847
230,291,579
3,433,997
815,877
8,541,605
85,898,297
98,689,776
119,249,751
10,027,737
2,324, 315
$ 131,601,803
$ 14,492,402
2,248,459
177,089
1,534,583
27,067
70,791
295,133
1,874,355
103, 733, 748
105, 608,103
124,453,627
1,827,753
101,893,442
295,133
16,363,211
$ 118,551,786
Total
$ 51,243,839
9,996,186
1,748,990
37,793
1,054, 806
295,133
930,509
24,038, 250
265,399,700
289,437,950
354,745,206
5,261,750
815,877
345,809 8,887,414
3,728,279 89,626,576
5,901,841 104,591,617
221,143,193
10,322,870
18,687,526
$250,153,589
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MAJOR GOVERNMENTAL FUNDS
General Fund
The General Fund accounts for all revenues and expenditures necessary in maintaining
governmental activities of the City. The major revenues include property taxes, licenses and
permits, intergovernmental revenue, and charges for services. The expenditures include providing
for general government services, community and economic development, public safety, public
works, and parks and recreation to the Citizens of Lakeville.
Debt Service Funds — These funds account for the accumulation of resources for the payment of
long -term debt principal and interest, but excluding debt issued for and serviced by an enterprise
fund.
General Obligation Fund
Debt approved by voter referendum, certificates of indebtedness, capital
improvement and street reconstruction bonds, Revenues are provided primarily
from property taxes.
G.O. improvement Fund
Debt issued to finance construction of public improvements. The special
assessments levied against benefited property owners are pledged toward the
repayment of the principal and interest on these bonds.
Capital Projects Funds — These funds account for financial resources used in the acquisition of
capital facilities, equipment, and infrastructure (except those financed by enterprise funds).
Building Fund
This fund accounts for the accumulation and disbursement of funds for the
construction or improvement of public buildings.
Improvement Construction Fund
This fund accounts for the construction of certain public improvements, such as
streets, storm sewers, water main and sanitary sewer systems. Construction
contracts involve multiple financing resources from the City and other government
entities and projects usually extend over several years before completion.
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CITY OF LAKEVILLE, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
DECEMBER 31, 2010
Fund balance - total governmental funds
Amounts reported for governmental activities In the statement of net assets
are different because:
1. Capital assets used in governmental activities are not current financial
resources and therefore are not reported in the governmental funds.
Governmental capital assets
Less accumulated depreciation
2. Grant receivable that is applicable towards accrued bond interest payable
is susceptible to full accrual on the government -wide statements.
3. Long term liabilities are not payable with current financial resources
and therefore are not reported in the govemmental funds.
Bonds
Accrued interest
Capital lease and loan
Unamortized debt issuance costs
Unamortized bond discount
Unamortized bond premium
4. Accrued compensated absences and net OPEB obligations are not
Payable with current financial resources and therefore are not reported
in the governmental funds.
5. Deferred revenue in governmental funds is susceptible to full
accrual on the government -wide statements.
6. The City uses an intemal service fund to charge the cost of insurance
activities to individual funds. A portion of the assets and liabilities of the
municipal reserves'fund are included in govemmental activities in the
statement of net assets.
Net assets of govemmental activities
See accompanying notes to basic financial statements.
39
$ 37,285,261
$283,117,102
(99,287,255) 183,829,847
32,263
(89,580,000)
(1,529,122)
(1,571,052)
984,015
11,041
(998,392) (92,683,510)
(2,301,499)
4,894,323
545,118
$131,601 803
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CITY OF LAKEVILLE, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2010
Net change in fund balances - total governmental funds $ (4,510,510)
Amounts reported for governmental activities in the statement of activities are
different because:
1. Governmental funds report capital outlays as expenditures while the government -wide
statement of activities reports depreciation expense to eliorate those expenditures
over the life of the assets. As a result, fund balance decreases by the amount of
financial resources expended, whereas net assets decrease by the amount of
depreciation expense charged for the year. This is the amount by which depreciation
expense exceeded capital outlay.
Capital outlay
Depreciation expense
2, In the govemment wide statement of activities, only the gain or loss on the sale of
capital. assets Is reported, whereas in the governmental funds, the proceeds from the
sales increase financial resources. Thus, the change in net assets differs from the
change in fund balance by the net book value of the capital assets disposed of.
3. Revenues in the government -wide statement of activities that do not provide current
financial resources are not reported as revenues in the governmental funds.
Deferred revenue - December 31, 2009 (6,371,208)
Deferred revenue - December 31, 2010 4 894.323
4. Bond proceeds are reported as other financing sources in governmental funds and thus
contribute to the increase in fund balance. Bond, loan, and capital lease principal
maturities are reported as expenditures in govemmental funds thus reducing fund
balance. In the govemment -wide statements, however, issuing debt increases long-
term liabilities while debt repayment reduces Tong -term liabilities thus affecting the
statement of activities.
Bond proceeds
Bond, loan, and capital lease principal maturities
5. interest/debt issuance expenses and debt premium /discounts in the government-wide
statement of activities differs from the amounts reported in governmental funds because
accrued interest was calculated for long -term debt payable in addition to the amortizations
of debt issuance and debt premiums/discounts which are recognized respectively as
expenditures and other financing sources and uses in the governmental fund statements.
Accrued interest payable 98,417
Grant applicable towards accrued interest payable 32,263
Issuance cost on 2010 bond issued 36,635
Premium on 2010 bond issued (99,322)
Amortization of debt issuance costs (101,160)
Amortization of debt premiums/discounts 106,772 73,605
6. Accrued compensated absences and net OPEB obligations are not payable with
current financial, resources and therefore are not reported in the governmental funds.
Accrued compensated absences - December 31, 2009 2,076,636
Accrued compensated absences - December 31, 2010 (2,218,228)
Net OPEB obligation increase - December 31, 2010 (27,209) (168,801)
7. Internal service funds are used by management to charge the costs of certain activities,
such as insurance, to individual funds. This amount represents a portion of the change
in net assets of the internal service fund, which are reported in with governmental activities. 101,057
Change in net assets of governmental activities $ 148,853
See accompanying notes to basic financial statements. 42
$ 2,335,575
(8,791,292) (6,455,717)
(26,234)
(1,476,885)
(2,680,000)
15 ,292, 338 12, 612,338
PROPRIETARY FUNDS
Enterprise Funds — These funds are used to account for off -sale liquor, water, sanitary sewer, and
street light operations of the City, both of which are self- supporting from retail sales and user
charges. The operations are managed much in the same way as private enterprises.
Liquor Fund
This fund accounts for revenues and expenses related to the operation of
Lakeville's municipal off -sale liquor stores.
Utility Fund
i'his fund accounts for revenues and expenses related to water, sanitary sewer
service, and street lighting provided to the community.
Internal Service Fund — The Internal Service Fund is used to account for services provided by one
City department to other City departments on a cost reimbursement basis.
Municipal Reserves Fund
This fund accounts for the City's risk management program relating to general
liability, excess liability, property and casualty insurance premiums. Premiums are
based upon a $50,000 deductible per occurrence with a $100,000 aggregate
maximum. The Statutory Municipal Tort Liability has a maximum limit of
$1,500,000. This fund also accounts for excess liability self - insurance coverage in
excess of the statutory maximum of $1,500,000.
CITY OF LAKEVILLE, MINNESOTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
DECEMBER 31, 2010
ASSETS
Current assets
Cash and investments $5,651,285 $ 8.841,117 $ 14,492,402 $ 724,010
Interest receivable 32,504 55,805 88,309 1,937
Accounts receivable 8,316 2,151,834 2,160,150
Inventory 1,400,451 134,132 1,534,583
Prepaid expenses 23,417 3,650 27,067
Total current assets 7,115,973 11,186,538 18,302,511 725,947
Non - current assets
Restricted cash and investments 295,133 295,133
Unamortized bond issuance cost _ 70,791 70,791
CSpitai assets
Land 1,272,296 528,160 1,800,456
Buildings and improvements 3,883,794 21,951,434 25,835,228
Machinery and equipment 423,828 1,856,025 2,279,851
Infrastructure 120,649,158 120,649,158
Construction :n p * 73,899 73,899
Accumulated depreciation (1,025,462) (44,005,027) (45,030,489)
Net capital assets 4,554,454 101,053,649 105,608,103
Total non - current assets 4,920,378 101,053,649 105,974,027
Total assets 12,036,351 112,240,187 124,276,538 725,947
LIABILITIES AND NET ASSETS
Current liabilities
Salaries payable 22,298 23,139 45,437
Accounts payable 1,176,860 503,052 1,879,912
Contracts payable 1,000 1,000
Accrued interest payable 76,875 76,875
Deposits payable 20,529 4,000 24,529
Accrued compensated absences 82,589 118,220 200,809
Bonds payable 145,000 - 145,000
Total current liabilities 1,524,151 849,411 2,173,562
Non - current liabilities
Accrued compensated absences 70,576 74,114 144,690
Unan•tortized bond premium 24,861 24,661
Net OPEB obligation 5,503 8,425 13,928
Bonds payable 3545,000 - 3,545,000
Total non-current liabilities 3,645,740 82,539 3,728,279
Total liabilities 5,169,891 731,950 5,901,841
Net assets
Invested in capital assets, net of related debt 839,793 101,053,649 101,893,442
Restricted for debt service 295,133 295,133
Unrestricted 5,731,534 10,454,588 16,186,122 722,207
Total net assets $6,866,460 $111,508,237 118,374,697 $ 722,207
Explanation of difference between proprietary funds statement of net assets
and the government -wide statement of net assets:
The City uses an internal service fund to charge the cost of Its insurance
activities to individual funds. This amount consists of the necessary
adjustment to reflect the consolidation of internal service fund activities: 177,089
Net assets of business -type activities $ 118,551,786
See accompanying notes to basic financial statements.
43
Business -type Activities - Governmental
Enterprise Funds Activities -
internal Service
Liquor Utility Total Fund
3,740
3,740
3,740
CITY OF LAKEVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2010
Liquor
Sales and cost of sales
Sales $14,763,552
Cost of sales 11,151,231
Gross profit 3,612,321
Operating revenues
User charges
Other
Total operating revenues
Gross profit and total operating revenues
Operating expenses
Personnel services
Commodities
Other charges and services
Disposal charges
Depreciation
Total operating expenses
Operating income (loss)
Non - operating revenue (expense)
Intergovernmental - grants
Investment income
interest, fiscal charges, bond premium (net)
Disposal of capital assets
Total non - operating revenue (expense)
Income (foss) before contributions and transfers
Contributed capital from governmental activities
Contributed capital from developers
Transfers from other funds
Transfers to other funds
Total contributions and transfers (net)
Change in net assets
Net assets, January 1 as previously reported
Prior period adjustment
Net assets, January 1 as restated
3,612,321 7,407,029
1,260,955
52,315
809,572
119,823
2,242,665
1,369,656
$ 7,226,691
180,338
7,407,029
1,492,030
352,157
2,273,471
2,825,699
2,985,475
9,928,832
(2,521, 803)
20,812 42,155
55,170 94,722
(189,431)
(280) 25,362
(113,729) 162,239
1,255,927 (2,359,564)
37,117
960,825
43,353
(433,911) (260,339)
(433,911) 780,956
822,016 (1,578,608)
6,230,447 113,086,845
(186,003) 6,044 444 113,086,845
Net assets, December 31 $ 6,866,460 $11
Explanation of difference between proprietary funds statement of revenue,
expenses, and changes in fund net assets and the statement of activities:
The City uses an Internal service fund to charge the cost of its insurance activities
to individual funds. This amount represents the income that has been allocated
back to the business -type activities in the government-wide statement of
activities that is attributable to the City's business -type activities:
Change in net assets of business -type activities
See accompanying notes to basic financial statements.
44
Business -type Activities - Governmental
Enterp Funds Activities -
�� Internal Service
Utility Total Fund
$ 14,763,552
11,151,231
3,612,321
7,226,691 $
180,338
7,407,029
359,608
68,851
428,459
11,019,350 428,459
2,752,985
404,472
3,083,043 253,188
2,825,699
3,1 05,298
12,171,497 253,188
(1,152,147) 175,271
62,967
149,892
(189,431)
25,082
48,510
(1,103,637) 178,559
37,117
960,825
43,353
(694,250)
347,045
3,288
3,288
(43,140)
(43,140)
(756,592) 135,419
586,788
586,788
$ 722,207
34,362
$ .1 722,230)
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2010
Cash flows from operating activities
Cash received from customers
Cash received from general service charges
Cash paid to suppliers
Cash paid to and for employees
Net cash flows from operating activities
Cash flows from noncapital financing activities
Intergovernmental - grant
Transfers from other funds
Transfers to other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities
Acquisition of capital assets
Disposal of capital assets
Interest and fiscal charges
Principal maturities
Net cash flows from capital and related financing activities
Cash flows from investing activities
• Investment Income received
Net change in cash and cash equivalents
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
(including restricted cash account of $295,133)
Reconciliation of operating income (loss) to
net cash Flows from operating activities
Operating income (loss)
Adjustments
Deprecation expense
(Increase) decrease in assets
Accounts receivable
Inventory
Prepaid expenses
increase (decrease) In liabilities
Salaries payable
Accounts payable
Contracts payable
Deposits payable
Accrued compensated absences
Net OPEB obligation
Total adjustments
Net cash flows from operating activities
Supplemental schedule of noncash financing" activities:
The City assumes ownership of utility capital assets
from governmental projects and land developers.
Capital assets assumed were as follows:
See accompanying notes to basic financial statements.
45
Business -type Activities - Governmental
Enterprise Funds Activities -
Internal Service
Liquor Utility Total Fund
$14,757,771 $ 7,525,589 $ 22,283,360 $
(12,000,141) (5,495,892) (17,496,033)
(1,238,133) (1,449,184) (2,687,317)
1,519,497 580,513 2,100,010
20,812 42,155 62,967
43,353 43,353
(433,911) (260,339) (894250)
(413,099) (174,831) (587,930)
(68,169) (555,992) (624,161)
95,000 95,000
(192,552) (192,552)
(295,000) - (295,000)
(555,721) (460,992) (1,016,713)
43,124 72,439 115,563 2,351
593,801 17,129 610,930 140,435
5,352,617 8,823,988 14,176,605 583,575
$5,946,418 $ 8,841,117 $ 14,787,535 $ 724,010
$ 1 $ (2,521,803) $ (1,152,147) $ 175,271
119,823 2,985,475 3,105,298
(5,781) 118,560
(63,949) (85,851)
(1,336) (150)
112,779
(149.800)
(1,486)
$ 997 $ 997,942
433,632
(252,408)
181,224
(43,140)
(43,140)
5,173
5,966 6.354 12,320
75,333 40,036 115,369 780
1,000 1,000
2,929 400 3,329
15,274 33,645 48,919
1,582 2,847 4,429
149,841 3,102,316 3,252,157 5,953
$1,519,497 $ 580,513 $ 2,100,010 $ 181,224
AGENCY FUND
Agency Fund — The Agency Fund is used to account for assets held by the City as an agent for
other City funds, governments, and individuals.
Escrow Fund
This fund accounts for deposits paid by land developers, builders, and other
individuals for future disbursements. The disbursements relating to these events
will be made when specific terms and conditions have been satisfied.
CITY OF LAKEVILLE, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS -
AGENCY FUND
DECEMBER 31, 2010
Assets
Cash and investments
Liabilities
Deposits payable
See accompanying notes to basic financial statements.
46
Escrow
Fund
$ 5,251,732
$ 5,2 ,732
NOTES TO BASIC
FINANCIAL STATEMENTS
Note 1 — Summary of Significant Accounting Policies
Note 2 — Prior Period Adjustment
Note 3 — Cash and Investments
Note 4 — Capital Assets
Note 5 — Deferred Revenue
Note 6 -- Operating Leases
Note 7 — Long -Term Liabilities
Note 8 -- Invested in Capital Assets, Net of Related Debt
Note 9 — Net Assets (Restricted)
Note 10 — Construction Commitments
Note 11 — Fund Equity Balances, Unreserved, Designated
Note 12 — Fund Deficit
Note 13 — Contributed Capital Assets from Private Land Developers and City
Government
Note 14 — lnterfund Transfers
Note 15 —Joint Powers Debt Commitment
Note 16 -- Other Post - Employment Benefits (OPEB) Plan
Note 17 — Risk Financing and Related Insurance Issues
Note 18 — Defined Benefit Pension Plans - Statewide
Note 19 — Defined Contribution Plan — Statewide
Note 20 — Lakeville Fire Relief Association
Note 21 — Deferred Compensation Plan
Note 22 — Litigation
Note 23 — Conduit Debt
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies
The City of Lakeville operates under the "Optional Plan A" form of government, according to applicable
State of Minnesota Statutes. The Statutes prescribe a Mayor - Council form of organization. The City
provides the following services: public safety, highways and streets, water and sanitary sewer, public
improvements, planning and zoning, culture- recreation, and general administration.
The basic financial statements of the City of Lakeville have been prepared in conformity with United States
generally accepted accounting principles (GAAP) as applied to government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental
accounting and financial reporting principles. The City's more significant accounting policies are described
below.
A. Financial Reporting Entity of the City
The City of Lakeville is a municipal corporation governed by an elected mayor and a four - member
council. In accordance with GASH Statement No. 39, Determining Whether Certain Organizations
Are Component Units — an amendment of GASB Statement No. 14, these financial statements
represent the City of Lakeville and it's sole component unit The City inclndes all funds,
organizations, 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 basic financial statements of the City based on the narare and
the significance of their operational or financial relationships with the City.
Blended Component Unit
The Housing and Redevelopment Authority (HRA) of Lakeville, Minnesota was created by the City
to provide housing and redevelopment assistance to its citizens. The HRA provides this assistance
through the administration of various programs. The HRA is governed by a five - member Board of
Commissioners comprised of the City of Lakeville Council in accordance with Minnesota Statutes
469.003, Subdivision 6. Although it is legally separate from the City, the HRA is reported as if it
were a part of the City (blended) because the City Council is also the HRA governing board. The
Commissioners terms of office coincide with those of the City Council member. The City
Administrator serves as the HRA Executive Director.
During fiscal year 2002, the HRA issued $2,535,000 in Public Facility Lease Revenue Bonds, Series
2002 A, to finance the construction of the City's fourth fire station and acquire a new fire truck. Debt
service will be payable solely from lease payments to be made by the City pursuant to the lease
agreement between the HRA and the City.
During fiscal year 2006, the HRA issued $9,230,000 in Ice Arena Lease Revenue Bonds, Series
2006, to finance the construction of the single sheet Hasse ice arena facility. Debt service will be
payable from equal lease payments to be made by the City pursuant to the lease agreement between
the HRA and the City, and in conjunction with the joint powers agreement between the City and
Independent School District No. 194.
These HRA bond obligations are combined and presented separately in the debt service funds as debt
supported by HRA lease revenue.
47
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FENANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accountine Policies (continued)
A. Financial Reporting Entity of the City (continued)
The HRA has not issued separate financial statements for the period ending December 31, 2010.
Information of a non - financial matter regarding the HRA can be obtained at the City's Finance
offices, located at 20195.Holyoke Avenue, Lakeville, Minnesota 55044.
13. Government -wide and Fund Financial Statements
The basic financial statements include both government wide and fund financial statements. The
government -wide financial statements focus on the City as a whole (consolidation of the City,
excluding fiduciary funds) while the fund financial statements focus on the major individual funds
(reported as separate columns within the fund financial statements). Separate financial statements are
provided for governmental funds, proprietary funds, and fiduciary funds.
Both the government -wide and fund financial statements (within the basic financial statements)
categorize primary activities as either governmental or business -type. In the governmental -wide
Statement of Net Assets, both the goverrunental and business -type activities columns (a) are
presented on a consolidated basis by column, and (b) are reflected, on a full accrual, economic
resources measurement focus, which incorporates long -term assets and receivables as well as long-
term debt and obligations. The City generally first uses restricted assets for expenses incurred for
which both restricted and unrestricted assets are available. The City may defer the use of restricted
assets based on a review of the specific transaction.
The government -wide Statement of Activities reflects both the gross cost and the net cost per
function category (general government, public safety, public works, and parks and recreation) which
are otherwise being supported by both program and general revenues (charges for services, grants
and contributions, property taxes, etc.). The Statement of Activities reduces gross expenses
(including depreciation) by the related program revenues and operating/capital grants and
contributions.
The program revenues must be directly associated with tbe function (general government, public
safety, public works, and parks and recreation) or a business -type activity. Program revenues are
derived directly from the program itself or from parties outside the City's taxpayers or citizenry, as a
whole. The City does not allocate indirect expenses. The operating grants and contributions column
include operating - specific and discretionary grants while the capital grants and contributions column
includes capital specific grants and contributions.
The governmental fund financial statements are presented using the current financial resources
measurement focus and the modified accrual basis of accounting. This is the manner in which these
funds are normally budgeted. Since the governmental fund statements are presented using a
measurement focus and basis of accounting different from that used in the government-wide
statement's' governmental column, a reconciliation is presented that briefly explains the adjustments
necessary to reconcile ending net assets and the change in net assets.
48
CITY OF LAKEVILLE, MINNESOTA
NOTES TO I3ASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies (continued)
B. Government -wide and Fund Financial Statements (continued)
Both the City as a whole and the City's major funds, including both governmental and enterprise
funds, as well as an agency fund, are presented utilizing the focus of the GASB Statement No. 34
reporting model. Each presentation provides valuable information that can be analyzed and
compared (between years and between governments) to enhance the usefulness of the information.
In the fund financial statements, financial transactions and accounts of the City are organized on the
basis of funds. The operation of each fund is considered to be an independent fiscal and separate
accounting entity, with a self - balancing set of accounts recording cash and/or other financial
resources together with all related liabilities and residual equities or balances, and changes therein,
which are segregated for the purpose of carrying on specific activities or attaining certain objectives
in accordance with special regulations, restrictions, or limitations.
Major governmental funds — The City reports the following major governmental funds:
• General fund — The general fund is the general operating fund of the City. It is nsed to
account for all financial resources except for those required to be accounted for in another
fund. This fund records revenues such as property taxes, licenses and permits,
intergovernmental revenues, charges for services, fines, and investment income. Most of the
current day -to-day operations of the City are financed from this fund.
• Debt service general obligation fund — This fund accounts for those bond issues that
financed debt approved by voter referendum, equipment certificates of indebtedness, and
capital improvement bonds. Revenues are provided primarily from property taxes.
• Debt service G.O. Improvement fund — This fund accounts for those bond issues that
financed street, storm sewer, water, and sanitary sewer improvements. The special
assessments levied against benefited property owners are pledged toward the repayment of
the principal and interest on these bonds.
• Capital projects building fund — This fund accounts for the accumulation and disbursement
of funds for the construction or improvement of public buildings.
• Capital projects improvement construction fund — This fund accounts for complex
construction contracts that involve multiple financing resources from the City and other
government entities. Construction projects usually extend over several years before
completion.
Major proprietary funds — The City reports the following major proprietary funds:
• Enterprise liquor fund — This fund is used to account for the retail operations of three off -
sale liquor stores.
• Enterprise utility fund -- This fund is used to account for water, sanitary sewer service, and
street lighting provided to City customers.
49
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Sienificant Accountine Policies (continued)
B, Government -wide and Fund Financial Statements (continued)
Other funds — The City reports the following other funds:
• Internal service fund — The internal service fund accounts for the City's risk management
program relating to general liability, excess liability, property, and casualty insurance costs
which are charged to other departments of the City.
• 4genry fund -- The agency fund is used. to record the receipt and remittance of monies, held.
by the City as an agent primarily for land developers and builders that will be refunded to
the respective depositors when the conditions are satisfied in accordance with the respective
agreements.
C. Measurement Focus and Basis of Accounting
The accounting and reporting treatment applied to a fund is determined by its measurement focus,
Funds are classified into three categories: Governmental, Proprietary, and Fiduciary. To provide an
accurate cost measurement of individual activities in the fund financial statement consolidation
process, the City's interfund activity relating to services provided by and used between functions has
been removed from these statements; exceptions are for charges between the government's liquor and
utility function and other functions of the government.
Governmental Funds:
• Measurement focus: Govermmental funds are accounted for using a current financial
resources measurement focus. With this measurement focus, only current assets and current
liabilities generally are included on the balance sheet. Reported fund balance is considered
a measure of "available spendable resources." Governmental fund operating statements
represent increases (i.e., revenues and other financing sources) and decreases (i.e.,
expenditures and other financing uses) in net current assets.
• Basis of accounting: Governmental funds are accounted for using the modified accrual
basis of accounting. Their revenues are recognized when susceptible to accrual (Le., when
they become measurable and available). "Measurable" means the amount of the transaction
can be determined and "available" means collectible within the current fiscal year or soon
enough thereafter to be used to pay liabilities of the current fiscal year. For this purpose the
City generally considers revenues to be available if collected within 60 days of year end.
• Revenues: Major revenues that are susceptible to accrual include property taxes, excluding
delinquent taxes received over 60 days after current fiscal year -end; special assessments,
intergovernmental revenue, charges for services, investment income, and donations. Major
revenues that are not susceptible to accrual (i.e., license and permit revenues, and
miscellaneous revenues) are recorded when received because they are not measurable until
collected.
50
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies (continued)
C. Measurement Focus and Basis of Accounting (continued)
Governmental Funds: (continued)
• Deferred revenues: Deferred revenues arise when potential revenue does not meet both the
"measurable" and "available" criteria for recognition in the current period. Deferred
revenues also arise when resources are received before the City has a legal claim to them, as
when grant monies are received prior to the incurrence of qualifying expenditures. In
subsequent periods, when both revenue recognition criteria are met, or when the City has a
legal claim to the resources, the liability for deferred revenue is removed and revenue is
recognized.
• Expenditures: Expenditures are generally recognized under the modified accrual basis of
accounting when the related fund liability is incurred, except for principal and interest on
long -term debt, other post - employment benefits, and compensated absences which are
recognized when due.
Proprietary and Fiduciary Funds:
Measurement focus: Proprietary funds and fiduciary funds (with the exception of agency
funds) are accounted for on a flow of economic resources measurement focus. This means
that all assets, including capital assets, and all liabilities, including long -term liabilities,
associated with fund activity are included on the Statement of Net Assets. Proprietary fund
types Statement of Revenues, Expenses and Changes in Net Assets present increases (Le.,
revenues) and decreases (i.e., expenses) in net total assets.
• Basis of accounting: Proprietary funds and fiduciary funds (including agency funds) are
accounted for using the accrual basis of accounting. Revenues are recognized when earned
and expenses are recorded at the time the liabilities are incurred. Unbilled utility service
receivables are recorded, at current fiscal year -end. Private sector standards of accounting
and financial reporting issued prior to December 1, 1989 generally are followed in both the
government -wide and proprietary fund financial statements to the extent that those standards
do not conflict with or contradict guidance of GASB. Cities also have the option of
following subsequent private sector guidance for their business -type activities and enterprise
funds, subject to this same limitation. The City has elected not to follow subsequent private
sector guidance.
• Operating versus non - operating items: Proprietary funds distinguish operating revenues
and expenses from non - operating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating reverauc of the
City's enterprise funds and internal service fund are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service fund include the cost
of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non - operating revenues
and expenses.
51
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity
I. Cash and investments, and interest receivable
Cash balances from all funds are combined and invested to the extent available in certificates of
deposit, commercial paper, U.S. Goverment securities, and other securities authorized by State
Statutes. Earnings from such investments are allocated to the respective funds on the basis of
applicable cash balance participation by each fund.
2. Investments held by trustee
Cash and investments held by trustee represent in part the fair value of deposits that are required
to be held in trust for various City obligations. These established escrow accounts will remain in
effect until the terms and conditions of the obligations have been fulfilled.
3. Taxes receivable
Property tax levies are set by the City Council in December each year and are certified to Dakota
County for collection in the following year. Such taxes become a receivable of the City and
become a lien on the respective property as of January 1. In Minnesota, most counties act as
collection agents for all property taxes. Dakota County spreads the levies over all taxable
property within the City of Lakeville. Real and personal property taxes are payable in equal
installments by property owners to Dakota County on May 15 and. October 15 of each year.
Dakota County remits these and delinquent collections to the City twice a year, in January and
July. Unpaid taxes on December 31 are classified in the fund financial statements as delinquent
taxes receivable. This receivable is fully offset by def revenue, as it is not available to
finance current expenditures.
Taxes receivable include the following components:
Unremitted - amounts collected by Dakota County but not yet remitted to the City by December 31.
Delinquent - amounts billed to property owners but not paid.
4. Due from/to other fund and loan receivable
The capital projects sanitary sewer fund due from other fund represents a temporary cash advance
to the capital projects water fund. for $100,000. The amount will be repaid upon receiving a
budgeted transfer from the enterprise utility fund in 2011. The capital projects storm sewer fund .
has a loan receivable of $210,000; the loan repayment is fully supported by annual tax increment
revenue geuerated by the DHY Tax Increment Financing District 17. The loan receivable is fully
offset by deferred revenue, as it is not available to finance current expenditures.
52
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1-- Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity (continued)
5. Special assessments receivable
Special assessments are levied against the benefited properties for the assessable costs of special
assessment improvement projects in accordance with State Statutes. The City usually adopts the
assessment rolls when the individual projects are complete or substantially complete. The City is
obligated for the payment of special assessment debt not covered through the collection of special
assessments from property, owners. Any obligation by the City would be paid by property taxes.
Special assessments are collectable over a term of years generally consistent with the term of
years of the related bond issue. Collection of annual special assessment installments (including
interest) is administered by Dakota County in the same manner as property taxes. Property
owners are allowed to prepay total future installments without interest or prepayment penalties.
Special assessments receivable includes the following components:
6. Inventory
Unremitted - amounts collected by Dakota County but not yet remitted to the City by December 31.
Delinquent - amounts billed to property owners but not paid.
Deferred - assessment installments that will be billed to property owners in future years.
Other - assessments for which payment bas been delayed based on State Statutes or City Council action.
The inventory in the general fund is stated at FIFO (first -in, first -out) cost and consists of
expendable supplies held for consumption. Under FIFO, the cost is recognized as an expenditure
at the time the inventory items are used (consumption method). The inventories of the proprietary
funds are stated at the lower of FIFO cost or replacement market.
7. Prepaid items
Payments made to vendors for services that will benefit periods beyond the current year are
recorded as prepaid items. Prepaid items are also accounted for using the consumption method.
8. Unamortized bond issuance costs, bond premium and bond discount
In the governmental fund financial statements, bond issuance costs are recognized as expenditures
in the current fiscal year. Bond premiums and discounts are recognized as other financing sources
and uses, respectively in the current fiscal year. Bond issuance costs, bond discounts and bond
premiums for the City's government-wide financial statements are deferred and amortized over
the term of the bonds using the straight -line method. Unamortized bond premiums and discounts
are included within the non - current liabilities due in more than one year of the City's government -
wide statement of net assets.
53
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies (continued)
D. Assets. Liabilities, and Net Assets or Equity (continued)
8. Unamortized bond issuance costs, bond premium and bond discount (continued)
The enterprise liquor fund includes a non-current asset for unamortized bond issuance cost and a
non - current liability for unamortized bond premium associated with the issuance of the liquor
revenue bonds of 2007. The bond issuance cost and bond premium are amortized over the term
of the bonds using the straight -line method.
9. Restricted assets (temporarily)
The government -wide Statement of Net Assets `restricted assets (temporarily)" represents cash
and investments, and investments held by trustee that have imposed restrictions placed on therm by
parties outside the government. These restricted amounts are pledged by bond covenants to the
repayment of City indebtedness. The assets are temporarily restricted until the terms and
conditions of the obligations have been fulfilled.
10. Capital assets
Capital assets, which include land, historical treasures, construction in process, buildings and
improvements, machinery and equipment, other improvements, and infrastructure, are reported in
the applicable governmental or business -type activity columns of the government -wide Statement
of Net Assets. Such assets are capitalized at historical cost, or estimated historical cost for assets
where actual historical cost is not available. Donated assets are recorded as capital assets at their
estimated fair value on the date of donation. The City defines capital assets as those with an
initial, individual cost of $5,000 or more with an estimated useful life of not less than three years.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend the life of the asset are not capitalized.
Capital outlays are recorded as expenditures in the City's governmental fund financial statements,
which use the modified accrual basis of accounting. Capital outlays that meet the City's
capitalization criteria are reported in the govenmaent -wide Statement of Net Assets and
proprietary funds Statement of Net Assets, both of which use the full accrual basis of accounting.
Interest incurred during the construction phase of capital assets for business -type activities is
included as part of the capitalization value of assets constructed.
Depreciation on the capital assets is recorded on a government -wide basis. Land, historical
treasures, and construction in process are not depreciated. Capital assets are depreciated using the
straight -line method over their estimated useful lives as follows:
Buildings and improvements 50-75 years
Machinery and equipment 3 -15 years
Other improvements 10 -50 years
Infrastructure 20 -50 years
54
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity (continued)
1 1. Compensated absences
It is the City's policy to permit employees to accumulate earned but unused leave benefits as
either paid time off (PTO), or vacation and sick leave. Under the City's personnel policies and
collective bargaining contracts, City employees are granted leave benefits in varying amounts
based on length of services. PTO accruals vary from 18 to 30 days per year, vacation accruals
vary from 10 to 20 days per year and sick leave accrues at a rate of 12 days per year.
As benefits accrue to employees, the accumulated PTO, vacation and vested sick leave is reported
as an expense and liability in the government -wide and proprietary fund financial statements.
Accrued PTO, vacation and a percentage of sick leave is paid to employees upon termination
(severance) and is reported as an expenditure in the governmental fund that will pay for it. No
liability is recorded for non - vesting accumulating rights to receive sick leave benefits.
12. Net other post-employment benefits (OPEB) obligation
In accordance with the provisions of GASB Statement No. 45, Accounting and financial
Reporting by Employers for Post - employment Benefits Other Than Pensions, an actuarial
valuation is required to be computed and reported for the City's post - employment health
insurance benefits provided to eligible employees through the City's Other Post - Employment
Benefits Plan. OPEB is reported as an expense on a pay -as- you -go basis and is accrued as it is
earned. The net OPEB obligation liability and corresponding expense for governmental activities
is reported within the government -wide financial statements. The net OPEB obligation liability
and corresponding expense for enterprise funds are recorded within those funds.
13. Long -term obligations
Long -term obligations are recorded in the City's government -wide Statement of Net Assets when
they become a liability of the City. Long -term obligations are recognized as a liability of a
governmental fund only when due or when payment is made to the paying agent.
14. Fund equity
In the fund financial statements, governmental funds report reservations of fund balance that
represent those portions of fund equity not appropriable for expenditure or legally segregated for
a specific future use. Designated fund balances represent tentative plans for future use of
financial resources.
55
CITY OF LAKEWLLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1— Summary of Significant Accounting Policies (continued)
D, Assets, Liabilities, and Net Assets or Equity (continued)
15. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation, is employed as an extension of formal budgetary integration in the general fund and
aneeila]. revenue funds.
Encumbrances recorded in governmental fund financial statements represent the uncompleted
portion of contracts. The outstanding encumbrances as of December 31 are reported as
reservations of fund balances since they do not constitute liabilities or expenditures or expenses.
E. Revenue, Expenditures and Expenses
1. In the governmental fund financial statements property tax revenue is recognized when it becomes
measurable and available to finance expenditures of the current fiscal year. All delinquent taxes
receivable are fully offset by deferred revenue in the governmental fund financial statements.
Taxes due from Dakota County on December 31 arc included in revenue since they are remitted
to the City within 60 days after December 31. In the government -wide Statement of Activities
property tax revenue is recognized when levied.
2. In the governmental fund financial statements special assessments principal and interest are
recognized as revenue when they become measurable and available to finance expenditures of the
current fiscal year. All delinquent assessments receivable are fully offset by deferred revenue in
the fund financial statements. Both the principal and interest on special assessments are payable
in installments over a term of years that matches the scheduled payments for the bond issue which
financed the project. In the government-wide Statement of Activities special assessments revenue
is recognized when levied.
3. Investment income is recorded as revenue in the year earned. Elements of investment income
include interest earned on investments and unrealized gains or (losses) on net increases or
decreases in the fair value of investments.
4. Certain grants and aids received by the City require that eligible expenditures be made in order to
earn the grant. Revenue for these grants is recorded in the period of which eligible expenditures
are made.
5. Enterprise utility fund service charges are recognized when earned with no allowance for
uncollectibles because delinquent accounts deemed uncollectible during the normal billing
process are certified to Dakota County as a property tax lien. Quarterly utility service charges
provided to customers but unbilled are included as receivables as of December 31.
56
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 1 — Summary of Significant Accounting Policies (continued)
E Revenue. Expenditures and Expenses (continued)
6. Interfund service transactions are accounted for as expenditures or expenses. Service transaction
payments to a fund are recorded as an expenditure or expense in the paying fund and conversely
recorded as a reduction of expenditure or expense in the fund that is receiving payment. Interfund
service transactions within the respective categories of governmental activities and business -type
activities in the government -wide Statement of Activities are eliminated.
F. Cash Flows
The City has applied the provisions of GASB Statement No. 9, Reporting Cash Flows of
Proprietary and Non - expendable Trust Funds and Governmental Entities that use Proprietary
Fund Accounting. This Statement establishes standards for cash flow reporting. It requires a
Statement of Cash Flows as part of a full set of financial statements for all proprietary entities that
use proprietary fund accounting. For purposes of the Statement of Cash Flows, the City considers
all highly liquid debt instruments with an original maturity from the time of purchase of three
mouths or less to be cash equivalents. The proprietary funds equity in the government -wide cash
and investments management pool is considered to be a cash equivalent.
G. Prior Year Comparative Information
Certain prior year information presented has been reclassified to conform to the current year
presentation.
Note 2 — Prior Period Adjustment
The City corrected the enterprise liquor fund accounts payable and cost of sales for the fiscal year ending
December 31, 2009. As a result of this correction liquor fund net assets as of December 31, 2009, has been
restated as follows:
As Previously Prior As
Reported Period Restated
Enterprise Liquor Fund 12/31/2009 Adjustment 12/31/2009
Statement of Net Assets
Accounts payable 5 915,524 5 186,003 $ 1,101,527
Net assets - unrestricted 6,230,447 (186,003) 6,044,444
Statement of Revenues, Expenses
and Changes in Net Assets
Cost of sales 10,806,701 186,003 10,992,704
57
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 3 — Cash and Investments
A. Components of Cash and Investments
The City's cash surpluses are pooled and invested in accordance with State Statute and City investment
policy. Investment earnings and unrealized gains and losses are allocated to funds on the basis of average
cash balances. Investments are stated at fair value, which is the amount that a financial instrument could be
exchanged for in a current transaction between willing parties. The investments are not identified with
specific funds. Investments held by trustee include balances held in segregated accounts for specific
purposes. Interest earned on these trustee accounts is allocated directly to the responsible fund. The
amounts represent funds held as required by the debt obligation covenants and other agreements. The City's
cash and investments as of December 31, 2010 consist of the following:
B. Deposits
Cash on hand $ 12,615
Deposits 464,091
Investments 57,244.507
Total cash and investments $ 57,721,213
The City's cash and investments as of December 31, 2010 . are presented in the financial statements as
follows:
Statement of Net Assets
Cash and investments $ 51,243,839
Temporarily restricted cash and investments 295,133
Temporarily restricted investments held by trustee 930,509
Statement of Fiduciary Net Assets
Cash and investments
Total cash and investments
5,251,732
57,721,213
In accordance with applicable Minnesota Statutes, the City is permitted to maintain deposits at depository
banks authorized by the City Council, including checking accounts, savings accounts, and non - negotiable
certificates of deposits. The City's deposit policy does not limit depository choices. The following is
considered the most significant risk associated with deposits:
Custodial Credit Risk — In the case of deposits, this is the risk that in the event of a bank failure,
the City's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal
deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged
must equal 110 percent of the deposits not covered by federal deposit insurance or corporate surety
bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government
agencies; general obligations rated "A" or better; revenue obligations rated "AA" or better;
irrevocable standard letters of credit issued by the Federal Horne Loan Bank; and certificates of
deposit.
58
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 3 — Cash and Investments (continued)
B. Deposits (continued)
Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a
restricted account at the Federal Reserve Bank or in an account at a trust department of a
commercial bank or other financial institution that is not owned or controlled by the financial
institution furnishing the collateral. The City does not have any custodial credit risk for its deposits
since all City deposits held in safekeeping by the City's banks are fully protected by insurance
and/or collateral as required by Minnesota Statutes and authorized by the City Council. At year-
end, the carrying amount of the City's deposits was $464,091 while the balance on the bank
records was $630,099.
C. Investments
The City's investments as of December 31, 2010 are as follows:
Interest Risk -
Maturity Duration in Years
Credit .Risk Less More
Investment Type Rating Agency Fair Value Than 1 11 = 5 6 -10 Than 10
Money market funds
Minnesota Municipal N/R N/A $ 123,867 $ $ $ - $
Wells Fargo AAAm S &P 151,653
First American Treasury
Obligation AAAm S &P 701,900
Certificates of deposit N/R N/A 13,070,338 11,837,968 1,232,370
U.S. government agencies Aaa Moody's 30,452,816 6,053,311 20,358,700 3,301,226 739,579
U.S. government agencies Aa3 Moody's 593,700 593,700
U.S. government agencies Al Moody's 2,004,840 1,000,020 1,004,820
U.S. government agencies N/R - N/A 10,145,393 10,145,393 -
Total investments
N/R - Not rated N/A - Not applicable
$ 57,244,507 $ 29,036,692 $ 23,189,590 $ 3,301,226 $ 739,579
The City's Minnesota Municipal money market fund is an external investment pool regulated by Minnesota
Statutes and the Board of Directors of the League of Minnesota Cities. The fund is an unrated 2a7 -like pool
and the fair value of the position in the pool is the same as the value of pool shares. The City's investment
policy does not place any further limitations beyond the state statute requirements for the risk categories
described below. Investments are subject to various risks, the following of which are considered the most
'significant;
Custodial Credit Risk — For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker - dealer) the City would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. The City does not have any custodial credit risk for its investments since all of the City's
investments held in safekeeping by the City's brokerage firm in the City's name are insured and
registered.
59
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 3 — Cash and Investments (continued)
C. Investments (continued)
Credit Risk — This is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. State Statutes authorize investments in money market funds, certificates of deposit,
commercial paper, U.S. treasury securities, U.S. government agencies, and other securities
provided they meet the two highest quality ratings of nationally recognized rating organizations.
Concentration Risk — This is the risk associated with investing a significant portion of the City's
investments (considered 5 percent or more) in the securities of a single issuer, excluding U.S.
guaranteed investments (such as treasuries), investment pools, and mutual funds.
As of December 31, 2010, the City's investment portfolio includes the following securities of
single issuers exceeding 5 percent:
Interest Rate Risk — This is the risk of potential variability in the fair value of fixed rate
investments resulting from changes in interest rates (the longer the period for which an interest rate
is fixed, the greater the risk).
D. Investment Policy
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
The City's investment policy limits exposure to interest rate risk by investing in shorter term
securities (maturing in one year or less) to meet current operating cash requirements. Longer term
investments are to be purchased with the intent to match maturity periods with future funding needs
for capital replacement and debt obligations. The City will not purchase investments that, at the
time of investment, cannot be held to maturity. This does not mean that an investment cannot be
sold prior to maturity.
Investment activity will focus upon protection of taxpayer dollars and investment income,
consistent with statutory authorization and financial prudence. The City will conduct its
investment transactions with several legal competing, reputable investment security dealers and
qualifying banks. The City will invest only in the following instruments or those others that may
subsequently be permitted by State Statute.
• United States Treasury obligations
• Federal Agency Securities
• Certificates of Deposit
• Commercial Paper
• Banker's Acceptance
• Money Market Funds
• State and local securities
60
24.5%
22.9%
19.5%
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 4 -- Capital Assets
A summary of changes in governmental capital assets during the year ended December 31, 2010 are as
follows:
Governmental Activities
Depreciable
Balance Balance
January 1 Additions Deletions December 31
Buildings and improvements $ 52,989,804 .$ 188,890 $ - $ 53,178,694
Machinery and equipment 16,256,828 488,590 (311,094) 16,434,324
Other improvements 3,807,067 289,815 4,096,882
Infrastructure
Streets 117,977,225 337,530 118,314,755
Storm sewer 49,885,715 668,208 50,553,923
Parks 18,099,688 274,941 18,374,629
Total depreciable at cost 259,016,327 2,247,974 (311,094) 260,953,207
Less accumulated depreciation
Buildings and improvements (7,319,676) (1,102,261) (8,421,937)
Machinery and equipment (8,868,069) (1,388,291) 285,363 (9,970,997)
Other improvements (1,483,806) (195,996) (1,679,802)
Infrastructure
Streets (53,457,349) (4,316,283) (57,773,632)
Storm sewer (10,943,724) (1,009,023) (11,952,747)
Parks (8,708,702) (779,438) (9,488,140)
Total accumulated depreciation (90,781,326) (8,791,292) 285,363 (99,287,255)
Total depreciable, net $168,235,001 $ (6,543,318) $ (25,731 ) $161,665,952
Non - depreciable
Land $ 21,490,469 $ 84,253 $ (503) $ 21,574,219
Historical treasures 100,000 100,000
Construction in process 486,328 244,282 (240,934) 489,676
Total non - depreciable 22,076,797 328,535 (241,437) 22,163,895
Depreciable, net 168,235,001 (6,543,318) (25,731) 161,665,952
Total capital assets, net $190,311,798 $ (6,214 $ (267,168 $1.83,829,847
Depreciation expense was charged to governmental functions as follows:
General government $ 233,271
Public safety 962,228
Public works 5,970,031
Parks and recreation 1,625,762
Total depreciation expense $ 8,791,292
61
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 4 — Capital Assets (continued)
A summary of changes in business -type capital assets during the year ended December 31, 2010 are as
follows:
Business -type Activities
Depreciable
Buildings and improvements
Machinery and equipment
Infrastructure
Water
Sanitary sewer
Total depreciable at cost
Less accumulated depreciation
Buildings and improvements
Machinery and equipment
Infrastructure
Water
Sanitary sewer
Total accumulated depreciation
Total depreciable, net
Non - depreciable land
Construction in process
Total non - depreciable
Depreciable, net
Total capital assets, net
Note 5 — Deferred Revenue
Balance
January 1
$ 25,818,178
2,051,266
67,570,524 652,557
51,993,049 433,028
147,433,017 1,54 8,204
(5,265,081) (541,256)
(1,226,497) (120,447)
(19,557,294) (1,407,099)
(16,023,385) (1,036,496)
(42,072,257) (3,105,298)
$ 105,360,760 $ (1,557,094)
$ 1,800,456 $
73,899
1,800,456 73,899
105,360,760 (1,557,094)
$ 107,161,216
Depreciation expense was charged to enterprise funds as follows:
Liquor fund
Utility fund
Total depreciation expense
Govenunent funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. The various
components of deferred revenue (unavailable and unearned) in the governmental funds as of December 31,
2010 are as follows:
62
Balance
Additions Deletions December 31
$ 17,050 $ - $ 25,835,228
445,569 (216,984) 2,279,851
$ 119,823
2,985,475
$ 3,105,298
68,223,081
52,426,077
(216,984) 148,764,237
(5,806,337)
147,066 (1,199,878)
(20,964,393)
(17,059,881)
147,066 (45,030,489)
$ (69,918) $ 103,733,748
$ $ 1,800,456
73,899
1,874,355
(69,918) 103,733,748
$ 1,483195 $ (69,918) $ 105,608,103
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 5 — Deferred Revenue (continued)
Taxes receivable
Special assessments receivable
Other receivables
Charges for services
Miscellaneous
Tax increment loan receivable
Total deferred revenue
Note 6 — Operating Leases
Operating Lease (Ames Arena):
Operating Lease - Purchase (Hasse Arena):
Operating Sublease (Hasse Arena):
Unavailable
$ 500,072
3,568,219
826,032
$ 4,894,323 $$ 815,877 $ 210,000 $ 5,920,200
On December 1, 2006, the City (as lessor) entered into a joint powers agreement with the Lakeville Arenas
(a Minnesota Joint Powers entity, as lessee), whereas the Lakeville Arenas is responsible for operations and
maintenance of the Ames Arena. Lakeville Arenas shall pay all debt service requirements due on the Gross
Revenue Recreation Facility Bonds of 1999 less payments received by Lakeville Hockey Association, Inc.
(Boosters) towards debt service payments in accordance with the revised and restated gaming revenue
agreement dated February 16, 1999. The 2010 Iease revenue totaled $88,626. The agreement will remain
in effect until August 1, 2019.
The City entered into an operating lease - purchase agreement (as lessee) with the Housing and
Redevelopment Authority (HRA as lessor) of Lakeville, Minnesota, on December 1, 2006. The lease,
consisting of land, building and equipment of the Hasse Arena located at 8525 215 Street West, requires
the City to provide lease payments sufficient to pay when due, the principal and interest on the HRA Ice
Arena Lease Revenue Bonds, Series 2006 ($9,230,000 original amount issued). Title to the arena will
transfer to the City upon completing the prescribed lease payments coinciding with the bonded debt service
schedule commencing February 1, 2007 and maturing February 1, 2032.
On December 1, 2006, the City (as sublessor) entered into a joint powers agreement with the Lakeville
Arenas (a Minnesota Joint Powers entity, as sublessee), whereas the Lakeville Arenas is responsible for
operations and maintenance of the Hasse Arena. In addition, the joint powers agreement calls for
Independent School District No. 194 to provide for one -half of all future ice arena lease payments to the
City. Lease agreement payments coinciding with the bonded debt service schedule commencing February 1,
2007 will remain in effect until February 1, 2032.
63
Deferred Revenue
Unearned Eliminated Total
$ - $ S 500,072
3,568,219
418,393 1,244,425
360,468 360,468
37,016 37,016
210,000 210,000
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 6 — Operating Leases (continued)
Operating Lease (Fire Station #4):
The City entered into an operating lease agreement (as lessee) with the Housing and Redevelopment
Authority (HRA as lessor) of Lakeville, Minnesota on April 15, 2002. The lease, consisting of land,
building and equipment of the newly constructed fire station #4 (located at 9465 185 Street), requires the
City to provide lease payments sufficient to pay when due, the principal and interest on the HRA Public
Facility Lease Revenue Bonds, Series 2002 A, of which the City paid $190,097 in 2010. The term of the
Iase coincides with the bond maturity date of February 1, 2023.
Operating Lease (Heritage Liquor Store):
The Heritage Liquor Store (located in Heritage Shopping Center) consists of 8,859 square feet of space at a
monthly lease cost of $14,150 plus a proportionate share of real estate taxes, property insurance, special
assessments, common area maintenance, and management fees. The fiscal year 2010 lease expense totaled
$172,500. The lease has a term of fifteen years expiring on June 30, 2014. The City owns the land and
buildings of its remaining two liquor stores.
Note 7 — Long -Term Liabilities
General Obligation Bonds
The City's general obligation bonds are supported primarily from revenues derived from property tax levies,
special assessment levies, tax increment levies, state -aid street revenue, water connection revenue charges,
ice arena operations, and contributions by an organization conducting lawful gaming at approved locations.
These bonds are backed by the full -faith and credit of the City.
Revenue Bonds
The following revenue bonds are not general obligations of the City and accordingly are not backed by the
full -faith and credit of the City.
Governmental Activities
The Gross Revenue Recreation Facility Bonds, Series 1999, are supported primarily from revenues
derived from ice arena operations and contributions from gaming revenues. The HRA Public Facility
Lease Revenue Bonds, Series 2002 A, will be supported solely from lease payments to be made by the
City pursuant to the lease agreement between the HRA of Lakeville and the City. The HRA Ice Arena
Lease Revenue Bonds, Series 2006, will be payable from equal lease payments to be made by the City
pursuant to the lease agreement between the HRA of Lakeville, the City, and in conjunction with the
joint powers agreement between the City and Independent School District No. 194. The City's portion
of the lease payments are supported by property tax levies.
Business -type Activities
The Liquor Revenue Bonds, Series 2007, are payable solely from enterprise liquor fund revenues.
64
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BAS1C FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 7 — Long-Term Liabilities (continued)
Metropolitan Council Loan Agreement 2006
On February 21, 2006, the City entered into a loan agreement with the Metropolitan Council for the purpose
of acquiring property for a commuter vehicle park and pool Iot located within a proposed state trunk
highway right-of-way. The Metropolitan Council provided a Ioan to the City in the amount of 51,466,300
to finance the acquisition of the property. The loan (free of interest charge) will be discharged by the
Metropolitan Council upon the conveyance of the property to the highway authority at an undetermined
future date.
General Obligation Improvement Refunding Bonds,Series 2009 B
On December 30, 2009, the City issued $4,250,000 in General Obligation Improvement Refunding Bonds,
Series 2009 13, in a crossover refunding transaction. The new bonds were issued to call the principal
amounts of the Improvement Bonds, Series 2000 A and Series 2001 A (totaling $4,285,000) maturing in
years 2011 -- 2020, on February 1, 2010. The new bonds will mature on February 1, 2020, (without a
provisional call) and bear interest rates ranging from 2.0% - 3.0 %. As with the 2000 A and 2001 A
refunded bonds, debt service for the 2009 B bonds will be payable primarily from property taxes and special
assessments levied to benefiting properties. The refunding transaction yielded a net savings to the City of
$560,421 with a present value economic gain of $507,423.
General. Obligation Tax Increment Refunding Bonds, Series 200913
On December 30, 2009, the City issued $930,000 in General Obligation Tax Increment Refunding Bonds,
Series 2009 13, in a crossover refunding transaction. The new bonds were issued to call the principal
amounts of the Tax Increment Bonds, Series 1999 B ($940,000) maturing in years 2011 — 2014, on
February 1, 2010, The new bonds will mature on February 1, 2014, (without a provisional call) and bear a
flat interest rate of 2.0 %. As with the 1999 B refunded bonds, debt service for the 2009 B bonds will be
payable primarily from tax increment and property taxes. The refunding transaction yielded a net savings to
the City of $87,238 with a present value economic gain of $85,067.
General Obligation State -aid Street Refunding Bonds, Series 2010 A
On January 1, 2010, the City issued $2,680,000 in General Obligation State -Aid Street Refunding Bonds,
Series 2010 A, in a refunding transaction. The new bonds were issued to call the remaining principal
amounts of the State -Aid Street Bonds, Series 2000 C ($2,730,000 for years maturing 2011 — 2020) on
April 1, 2010. The new bonds will mature on April 1, 2020, (without a provisional call) and bear interest
rates ranging from 2.0% - 4.0 %. As with the 2000 C refunded bonds, debt service for the 2010 A bonds
will be payable solely from municipal state -aid street revenue received from the State of Minnesota. The
refunding transaction yielded a net savings to the City of $426,700 with a present value economic gain of
$378,275.
65
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 7 — Lone-Term Liabilities (continued)
The total long -term bonded debt outstanding as of December 31, 2010 is summarized as follows:
Governmental Activity Bonds
General obligation bonds
Equipment certificates
Park bonds
Capital improvement bonds
Street construction bonds
G.O. Improvement bonds
Tax increment bonds
State -aid street revenue bonds
Water connection revenue bonds
Arena revenue bonds
Total general obligation bonds
HRA lease revenue bonds
Total governmental activity bonds
Business -type Bonds
Liquor revenue bonds
Total long -term bonded debt outstanding
Year Ending
December 31,
2011
2012
2013
2014
2015
2016 -2020
2021 -2025
2026 -2030
2031 -2032
Total
Governmental
Principal Interest
$ 7,375,000 $ 3,627,942
5,930,000 3,394,632
5,560,000 3,189,933
5,400,000 2,990,809
5,530,000 2,788,273
21,805,000 11,061,729
18,335,000 6,783,638
16,365,000 2,654,700
3,280,000 153,550
$ 89,580,000 $ 36645,206
Maturities Interest Rates
2011 -2012
2015
2030, 2032
2026 -2030
2016 -2020
2014 -2022
2018 -2021
2016
2015 -2019
2023 -2032 4.25% -5.35%
66
2027
2.50% -4.25%
3.50% -3.75%
3.25 % -5.00%
1.00% - 5.95%
2.00 % - 4.125%
2.00% -5.10%
2.00% -4.95%
4.00%
2.50% -5.40%
5.00%
Business -type
Principal Interest
$ 145,000
150,000
160,000
165,000
175,000
1,000,000
1,290,000
605,000
$ 180,875
173,500
165,750
157,625
149,125
603,750
318,750
30,625
$ 3,690,000 $ 1,780,000
Amount
$ 1,575,000
1,920,000
28,240,000
23,175,000
6,705,000
3,590,000
6,450,000
5,715,000
1,430,000
78,800,000
10,780,000
89,580,000
3,690,000
$ 93,270,000
The City is in compliance with all significant bond covenants. The annual requirements to amortize all
outstanding bonded debt as of December 31, including interest payments of $38,425,206 are as follows:
Total
$ 11,328,817
9,648,132
9,075,683
8,713,434
8,642,398
34,470,479
26,727,388
19,655,325
3,433,550
$131,695,206
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 7 — Lone -Term Liabilities (continued)
Equipment Capital Lease (ice arena dehumidification equipment):
During fiscal year 2005, the City entered into a capital lease purchase agreement (as lessee) to finance the
acquisition of dehumidification equipment at the Lakeville Ames Arena. The carrying value of the
dehumidification system within in machinery and equipment of governmental capital assets is $130,500.
Title to the equipment will transfer to the City at the time the lease expires on February 1, 2021. The
following is a schedule of the future minimum lease payments as of December 31, 2010:
Accrued Compensated Absences
Future Lease
Dehumidification Lease Payment Dates Payments
February 1, 2011 and August 1, 2011 $ 13,073
February 1, 2012 and August 1, 2012 13,073
February 1, 2013 and August 1, 2013 13,073
February 1, 2014 and Angust 1, 2014 13,073
February 1, 2015 and August 1, 2015 13,073
February 1, 2016 through August 1, 2020 65,365
February 1, 2021 6,536
Total minimum lease payments 137,266
Less: amount representing interest (32,514)
Present value of lease payments $ 104,752
Governmental Activities
The governmental funds accumulated liability for accrued PTO, vacation and vested sick pay (including
applicable salary- related payments) as of December 31, 2010 is $2,218,228. This amount is included
in the non - current liabilities of the government -wide Statement of Net Assets.
In the event of employee separation from City, the general fund and the responsible special revenue
fund will pay the accumulated vacation portion, while the special revenue compensation liability fund
will pay the PTO and vested sick pay portion. The City has accumulated $823,807 in the special
revenue compensation liability fund for payment of the PTO and vested sick pay portion of the
severance amount.
Business -type Activities
The accumulated liability for accrued PTO, vacation and vested sick pay for proprietary enterprise
funds (including applicable salary- related payments) as of December 31, 2010 is $345,499. In the
event of employee . separation from City, the responsible enterprise fund will pay the accumulated
severance portion. These amounts are recorded as a liability and as an expense when earned in the
responsible funds.
67
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 7 — Long -Term Liabilities (continued)
Unamortized Bond Premium and Discount
Unamortized bond premium and bond discount included within non - current liabilities are as follows:
Governmental Business -type
Unamortized bond premium $ 998,392 $ 24,661
Unamortized bond discount (11,041) -
Total =amortized (net) $ 987,351 $ 24,661
Net Other Post - Employment Benefit (OPEB) Obligation
Other post - employment benefit obligations in prior years have been liquidated primarily by the general fund
for governmental activities and by the liquor fund and utility fund for business -type activities.
During the year ended December 31, 2010 the following changes occurred in non - current liabilities:
Balance Balance Due Within
January 1 pdditlons Deletions December 3l One Year
Governmental Activities
General obligation bonds $ 58,105,000 $ - $ (3,195,000) $ 54,910,000 $ 3,140,000
Other bonds 44,080,000 2,680,000 (12,090,000) 34,670,000 4,235,000
Total bonds 102,185,000 2,680,000 (15,285,000) 89,580,000 7,375,000
Capital lease 112,090 (7,338) 104,752 7,725
Metropolitan Council loan 1,466,300 - 1,466,300
Total long -tens debt 103,763,390 2,680,000 (15,292,338) 91,151,052 7,382,725
Accrued compensated absences 2,076,636 1,300,472 (1,158,880) 2,218,228 1,158,880
Unamortized bond premium/discount 994,801 99,322 (106,772) 987,351
Net OPEB obligation 56,062 35,645 (8,436) 83,271
Total governmental activities 106,890,889 4,115,439 (16,566,426) 94,439,902 8,541,605
$aslness -type Activities
Liquor revenue bonds 3,985,000 (295,000) 3,690,000 145,000
Acerued compensated absences 296,580
Net OPEB obligation 9,499 5,802 249,729 {200,810) 345,499 200,809
Unamortized bond premium 26,194 (1,533) 24,661
(1,373) 13,928
Total business type activities 4,317,273 255,531 (498,716) 4,074,088 345,809
Total governmental and
business -type activities $ 111,208,162 $ 4,370,970 $ (17,065,142) $ 98,513,990 $ 8,887,41.4
68
CITY OF LAKE'VILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 8 — Invested in Capital Assets, Net of Related Debt
Invested in capital assets, net of related debt as of December 31, 2010 is calculated as follows:
Governmental ,B usiness -tune Total
Capital assets, net of depreciation $ 183,829,847 $ 105,608,103 $ 289,437,950
Less applicable:
Lease payable
Bonds payable
Loan payable
Unamortized bond premium/
discount (net) (849,044) (24,661) (873,705)
Invested in capital assets, net $ 119,249,751 $ 101,893,442 $ 221,143,193
Note 9 — Net Assets (Restricted)
(104,752)
(62,160,000)
(1,466,300)
(104,752)
(3,690,000) (65,850,000)
(1,466,3 00)
The City has $27,420,000 in bonds and $138,307 in bond premium/discount (net) that are unrelated in the
calculation above.
The government-wide Statement of Net Assets reports restricted amounts in the net assets section. These
amounts represent assets (less any related Iiabilities) that have imposed restrictions placed on them by
parties outside the City government. Net assets restricted for debt service represent assets pledged by bond
covenant to the repayment of City bond obligations. The government-wide restricted net assets are as
follows:
Restricted Net Assets
Cash and investments
Temporarily restricted
Cash and investments
Investments held by trustee
Receivables
Less related liabilities
Restricted for debt service
Governmental
Activities
$ 8,618,393
930,509
3,929,649
(3,450,814)
Business -type
Activities Total
$ $ 8,618,393
295,133 295,133
930,509
3,929,649
(3,450,814)
$ 10,027737 $ 295,133 $ 10,322
69
CITY OF LAI EVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER. 31, 2010
Note 10 — Construction Commitments
The City has several outstanding construction and build projects as of December 31, 2010. These projects
include a channel stabilization project in the vicinity of 205 Street, an energy efficiency upgrade to the
HVAC system at Lakeville City Hall, a Fire Department tender truck build, ongoing replacement of utility
customers outdated water meters, Water Treatment Facility energy efficiency upgrades that include
replacing parking lot lights; a dehumidifier, and replacing a water pump with a variable frequency drive
pump, installing an emergency backup generator to well #3, and other sanitary sewer projects. The City's
commitments with contractors and other governmental entities are shown as follows:
Note 12 — Fund Deficit
Protects
Governmental Activities
205th Street channel stabilization
Lakeville City Hall HVAC upgrade
Fire Department tender truck build
City of Lakeville/City of Apple Valley
sanitary sewer interceptor
Total governmental
Business -tvpe Activities
Water meter replacement program
Water Treatment Facility energy upgrades
Emergency backup generator build
Total business -type
Total governmental and business -type
Note 11 — Fund Equity Balances, Unreserved, Designated
70
,$Dent -to -Date
$ 131,944
25,650
79,624
53,591
290,809
513,614
9,415
Remaining
Commitment;
$ 10,129
8,550
134,307
55,614
208,600
16,240
92,784
171,400
523,029 280,424
$ 813,838 $ 489,024
In the combined governmental funds Balance Sheet, the unreserved, designated fund balances of the general
fund and special revenue funds represent the financial resources to be utilized in the ensuing year's adopted
budget.
The capital projects water fund has a deficit fund balance of $79,714 as of December 31, 2010. The deficit
balance will be eliminated upon receiving a budgeted transfer from the enterprise utility fund in 2011.
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 13 — Contributed Capital Assets from Private Land Developers and City Government
The ownership of local streets, storm sewer, parks, water and sanitary sewer infrastructure capital assets that
are constructed and completed during the year by private land developers becomes contributed property of
the City. Stonn sewer, water and sanitary sewer infrastructure assets constructed. within Dakota County and
State of Minnesota right -of -way boundaries also become City capital assets since they are serviced and
maintained by the City. Roads and highways constructed within Dakota County and State of Minnesota
right -of -way boundaries are excluded from City capital assets. The City assumed ownership of the
following governmental and business -type capital assets contributed through private land developers during
the current fiscal year as follows:
Enterprise
From Private Land Developers Governmental Utility Fund
Infrastructure
Streets
Storm sewer
Parks
Water 592,545
Sanitary sewer 368,280
Total
$ 337,530 $
665,773
213,708
1,217,011 $ 960,825
The ownership of water and sanitary sewer infrastructure assets that are constructed and completed during
the year by City governmental activities (through various funding sources at cost) becomes contributed
property of the City's enterprise utility fund. The City's enterprise utility fund assumed ownership of the
following capital assets contributed during the current fiscal year as follows:
Enterprise
From Governmental activities Utility Fund
Infrastructure
Water $ 15,012
Sanitary sewer 22,105
Total $ 37,117
71
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 14 — Interfund Transfers
The City provides financing for a variety of operations and capital projects utilizing resources from certain
funds, interfund transfers used for these various activities during the current fiscal year are as
follows:
Transfers From
General fund
Other govntl.. funds
Total
Liquor fund
Utility fund
Internal service fund
Less: Utility fund
Total governmental funds
(1)
Fund
General
un
190,538
190,538
143,814
260,339
43,140
Total $ 637,831
(1)
Communications (SR)
Environ. Resources (SR)
Storm sewer (CP)
Liquor (E)
Utility (E)
Municipal reserves (IS)
Total
Transfers To:
Debt Service
G.O. G.O. Bldg.
Bonds Immo% Lund
$ $ 107,490 $ 52,136
488,902
596,392 52,136
100,000
$ 100,000
(2)
$ 596,392 $ 52,136
(3) (4)
The following are explanations to interfund transfers sub -notes 1 through 7.
Abbreviation key:
(SR) special revenue fund, (DS) debt service fund, (CP) capital projects fund,
(E) enterprise fund, (IS) internal service fund.
The transfers to general fund were provided mainly as overhead and maintenance costs from the
following funds:
Amount Description
$ 42,069 Public communications and city hall overhead costs.
111,316 Street sweeping, victor use, and city hall overhead costs.
37,153 G.I.S. storm sewer infrastructure data maintenance costs.
143,814 Patrol, chemical awareness, and city hall overhead costs.
260,339 City hall overhead costs.
43,140 City hall overhead costs.
$ 637,831
(2) The transfer to debt service general obligation bond fund ($100,000) was provided by the liquor fund
to be applied towards the debt service of the new police station completed in 2008.
72
Other
Govntl. Utility
Funds Fund Total
$ 2,826,165 $ - $ 2,985,791
1,338,361 43,353 2,061,1.54
4,164,526 43,353 5,046,945
190,097 433,911
260,339
43,140
$ 4,354,623 $ 43,353 5,784,335
(
(7) (43,353)
$ 5,740,982.
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 14 — Interfund Transfers (continued)
(3) The total transfer to debt service G.U. improvement bond fund was provided by the general fund
($107,490) to reduce 2011 and 2012 tax levy requirements and by various capital projects funds
($488,902) related to City improvement projects whereby user connection service charges are
pledged towards the improvement bonds debt service requirements.
(4) The transfer to capital projects building fund ($52,136) was provided by the general fund to finance
major building maintenance projects of several City facilities.
(5) The total transfer to other governmental funds ($4,164,526) was provided from the following
governmental funds:
From: Amount To:
General fund $ 1,285,791 Equipment (CP) for various capital equipment.
General fund 1,400,000 Trail improvement (CP) for maintenance.
General fund 140,374 Pavement mgmt. (CP) for road/parking lot maint.
Total general fund 2,826,165
Communications (SR) 7,806 Compensation liability (SR) for 2010 liability portion.
Environ. resources (SR) 766 Compensation liability (SR) for 2010 liability portion.
Tax increment (DS) 60,300 Storm sewer (CP) for DRY TIF district loan.
Water (CP) 1,269,489 Water revenue (DS) for debt service requirements.
Total other govntl. 1,338,361
(
Total $ 4,164,526
The transfer to other governmental funds ($190,097) by the enterprise liquor fund represents funding
provided for debt service requirements within the HRA revenue fund.
(7) The transfer to enterprise utility fund ($43,353) was provided from the special revenue
environmental resources fund for customer service billing overhead costs.
Included within the transfers to governmental activities from business -type activities of $613,780 on the
Statement of Activities is the City's contributed capital from governmental activities to enterprise utility
fund capital assets of ($37,117).
73
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 15 — Joint Powers Debt Commitment
On August 25, 2005 the City of Lakeville entered into a joint powers agreement with the Cities of Apple
Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Mendota Heights, Rosemount,
South St. Paul, West St. Paul, Minnesota, and Dakota County Minnesota, to establish the Dakota
Communications Center (DCC), a Minnesota nonprofit corporation. The purpose of the DCC is to engage
in the operation and maintenance of a countywide public safety answering point and communications center
for law enforcement, fire, emergency medical services, and other public safety services for the mutual
benefit of residents residing in the abovementioned cities and county, (members). Pursuant to the joint
powers agreement, members are required to provide DCC their pro rata share of cost of operations and
maintenance, and capital projects.
On May 1, 2007, the DCC issued Public Safety Revenue Bonds, Series 2007 in the anwunt of $7,315,000
to provide financing for the acquisition of equipment and reimbursement for conversion costs. The bonds
are special obligations of the DCC, payable from revenues to be received from members. Pursuant to the
joint powers agreement, members will levy taxes for the payment of their pro rata share of the principal and
interest payments clue on the bonds. The bonds maturiug February 1, 2014, bear interest rates ranging from
4.5 °fo - 5.0%. The debt will be re -paid with member assessmeuts over a seven year amortization. All
members reserve the right to prepay, in whole or in part on any date, its allocated share of principal and
interest on the bonds.
Payments from the City of Lakeville are provided from general fund appropriations. The City of
Lakeville's fixture member payments to DCC as of December 31, 2010 are as follows:
Payment Year Amount
2011 $ 142,200
2012 142,200
2013 147,000
Total $ 431,400
Pursuant to Section 9.5 of the joint powers agreement, member payments are submitted monthly and held in
escrow by U.S. Bank National Association (trustee) until the funds are remitted to the bond holders
according to the established bond principal and interest due dates. The interest earnings from the escrow
account will reduce future member obligations on the debt. Information regarding the Dakota
Communications Center can be obtained at the website www.mn- dcc.org/stats.asp or by contacting Dennis
Feller at the City of Lakeville, 20195 Holyoke Avenue, Lakeville, Minnesota 55044. Telephone 952 -985-
4481 or email address dfeller@ci.lakeville.mn.us.
74
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 16 — Other Post - Employment Benefits (OPEB) Plan
A. Plan Description
The City provides post - employment insurance benefits to certain eligible employees through the
City's Other Post - Employment Benefits Plan, a single - employer defined benefit plan administered by
the City. All post- employment benefits are based on contractual agreements with employee groups.
These contractual agreements do not include any specific contribution or funding requirements.
These benefits are summarized as follows:
Post - Employment Insurance Benefits - All retirees of the City have the option under state law to
continue their medical insurance coverage through the City from the time of retirement until the
employee reaches the age of eligibility for Medicare. For members of all employee groups, the
retiree must pay the full premium to continue coverage for medical and dental insurance.
The City is legally required to include any retirees for whom it provides health insurance coverage in
the same insurance pool as its active employees, whether the premiums are paid by the City or the
retiree. Consequently, participating retirees are considered to receive a secondary benefit known as
an "implicit rate subsidy."
This benefit relates to the assumptiou that the retiree is receiving a more favorable premium rate than
they would otherwise be able to obtain if purchasing insurance on their own, due to being included in
the same pool with the City's younger and statistically healthier active employees.
B. Funding Policy
The required contribution is based on projected pay -as- you -go financing requirements, with
additional amounts to pre -fund benefits as determined annually by the City.
C. Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated based on annual required contributions (ARC)
of the City, an amount determined on an actuarially determined basis in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level funding that, if paid on an
ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the
components of the City's annual OPEB cost for the year, the amount actually contributed to the plan,
and the changes in the City's net OFEB obligation to the plan:
Annual required contribution $ 42,474
Interest on net OPEB obligation 2,625
Adjustment to annual required contribution. (3.652)
Annual OPEB cost (expense) 41,447
Contributions made (9,809)
Increase in net OPEB obligation 31,638
Net OPEB obligation - beginning of year 65,561
Net OPEB obligation - end of year $ 97
75
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 16 — Other Post- Emnlovment Benefits (OPEB) Plan (continued)
C. Annual OPEB Cost and Net OPEB Obligation (continued)
The City's annual OPEB cost; the percentage of annual OPEB cost contributed to the plan; and the
net OPEB obligation for the year are as follows:
Fiscal
Year Ended
December 31, 2008 $
December 31, 2009 $
December 31, 2010 $
D. Funded Status and Funding Progress
E. Actuarial Methods and Assumptions
Annual Employer
OPEB Cost Contribution
42,474 $
41,866 $
41,447 $
10,295
8,484
9,809
Percentage of
Annual OPEB
Cost Contributed
24.2%
20.3%
23.7%
Net OPEB
Obligation
$ 32,179
$ 65,561
$ 97,199
As of January 1, 2008, the most recent actuarial valuation date, the plan was zero percent funded.
The actuarial accrued liability for benefits was $290,424, and the actuarial value of assets was $0,
resulting in an unfunded actuarial accrued liability (UAAL) of $290,424.
The covered payroll (annual payroll of active employees covered by the plan) was $11,365,890, and
the ratio of the UAAL to the covered payroll was 2.6 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability occurrence of events far into the future, Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and ABC's of the employer are subject to continual revision
as actual results are compared with past expectations and new estimates are made about the future.
The Schedule of Funding Progress immediately following the notes to the basic financial statements
presents multi -year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long -terra perspective of the calculations.
-In the January 1, 2008 actuarial valuation, the projected unit credit actuarial cost method was used.
The actuarial assumptions included: a 4.0 percent investment rate of return (net of administrative
expenses) based on the City's own investments; a 2008 annual healthcare cost trend rate of 0.0
percent initially, increased to 8.0 percent, and reduced by decrements of 1.0 percent to an ultimate
rate of 5.0 percent after five years for medical insurance. The UAAL is being amortized on a level
dollar basis over a closed period. The remaining amortization period at January 1, 2010 was 28
years.
76
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 17 — Risk financing and Related Insurance Issues
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City purchased the following
insurance coverage through. the LMCIT, a public entity risk pool currently operating as a common risk
management and insurance program for Minnesota cities: general liability, excess liability, workers
compensation, property, automobile, marine, crime, employee dishonesty, boiler, petro fund, and open
meeting law.
The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self - sustaining
through member premiums and will reinsure through commercial companies for claims in excess of
reserved amounts for each insured event. The LMCIT allows for the pool to make additional assessments to
make the pool self-sustaining. Current state statutes (Minnesota statutes subd. 466.04) provide Limits of
liability for the City.
These limits are that the combination of defense expense and indemnification expense shall not exceed
$1,500,000 for any number of claims arising out of a single occurrence. The Minnesota statutory limit on
claims is $1,500,000 per occurrence. The City self- insures the risk of any potential judicial ruling in excess
of the statutory maximum. The City has never had a claim in excess of the statutory maximum. There have
been no significant reductions in insurance coverage from the prior year and insurance settlements have not
exceeded coverage in the past three years.
Workers compensation premiums for. 2010 and 2009 were $327,352 and $303,644, respectively. The City
is enrolled in the LMCIT workers compensation "regular" program. The LMCIT regular program provides
a fixed premium based on payroll and provides no claim risk to the City as a result of high claims
experience. The City's workers compensation premiums are accounted for directly in the responsible funds.
Note 18 — Defined Benefit Pension Plans - Statewide
A. Plan Description
All full -time and certain part-time employees of the City of Lakeville are covered by defined benefit
plans administered by the Public Employees Retirement Association of Minnesota (PERA),
PERA administers the General Employees Retirement Fund (GERF) 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.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. The City does not have any
members enrolled in the Basic Plan; therefore all new members must participate in the Coordinated
Plan. All police officers are covered by PEPFF.
77
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STAT'EMENT'S
DECEMBER 31, 2010
Note 18 — Defined Benefit Pension Plans — Statewide (continued)
A. Plan Description (continued)
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest after
three years of credited service. The defined retirement benefits are based on a member's highest
average salary for any five successive years of allowable service, age, and years of credit at
termination of service.
Two methods are used to compute benefits for PERA's Coordinated 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 is 1.2 percent of average salary for
each of the first 10 years of service and 1.7 percent for each remaining year. Under Method 2, the
annuity accrual rate is 1.7 percent of average salary for each year of service.
For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service.
For all GERF and PEPFF 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 equal 90. Normal retirement age
is 55 for PEPFF members and 65 for Coordinated Plan members hired prior to July 1, 1989.
Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated
Plan members hired on or after July 1, 1989. A reduced retirement annuity is also available to
eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is
a lifetime annuity that ceases upon 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 GERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org, or by writing to PERA at 60 Empire Drive #200, Saint Paul, Minnesota, 55103-
2088 or by calling (651) 296 -7460 or 1- 800 - 652 -9026.
78
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 18 — Defined Benefit Pension Plans — Statewide (continued)
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.
GERF Coordinated Plan members were required to contribute 6.0% of their annual covered salary in
2010. PEPFF members were required to contribute 9.4% of their annual covered salary in 2010. In
2010, the City of Lakeville was required to contribute the following percentages of annual covered
payroll: 7.00% for Coordinated Plan members, and 14.1% for PEPFF members.
The City's contributions to the GERF Coordinated Plan for the years ending December 31, 2010,
2009, and 2008 were $583,884, $578,225, and $575,007, respectively. The City's contributions to
the PEPFF for the years ending December 31, 2010, 2009, and 2008 were $621,658, $602,343, and
$524,673, respectively. The City's contributions were equal to the contractually required
contributions for each year as set by state statute.
Note 19 — Defined Contribution Plan — Statewide
A. Plan Description
Two Council members of the City of Lakeville are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple- employer deferred compensation plan administered by the
Public Employees Retirement Association of Minnesota (PERA).
The PEDCP is a tax qualified plan under Section 401 (a) of the Internal Revenue Code and all
contributions by or on behalf of employees are tax deferred until time of withdrawal.
B. Funding Policy
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including
the employee and employer contribution rates for those qualified personnel who elect to participate.
An eligible elected official who decides to participate contributes 5 percent of salary which is
matched by the elected official's employer.
Employer and employee contributions are combined and used to purchase shares in one or more of
the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan,
PERA receives 2 percent of employer contributions and twenty -five hundredths of one percent of the
assets in each member's account annually. Total contributions made by the City of Lakeville for the
year ending December 31, 2010 were as follows:
79
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 19 — Defined Contribution Plan — Statewide (continued)
B. Funding Policy (continued)
A. Plan Description
Percentage of
Contribution Amount Covered Payroll Required
Employee Employer Employee Employer Rates
$ 869 $ 869 5.0% 5.0% 5.0%
Note 20 — Lakeville Fire Relief Association
Firefighters of the City of Lakeville Fire Department are members of the Lakeville Fire Relief
Association. There are no covered salaries or related fringe benefits in connection with the Relief
Association plan. Since members are volunteers, City of Lakeville contributions to the Lakeville Fire
Relief Association are not based on payroll, but rather on years of active service.
The Association is the administrator of a single employer defined benefit pension plan available to
firefighters that was established in 1972 and operates under the provisions of Minnesota State
Statutes Chapter 424A. The plan is governed by a board of six members elected by the members of
the Association for three year terms. One City Council member, Finance Director, and Fire Chief are
ex officio, nonvoting members of the Board of Trustees.
Non - employer pension contributions include state -aid from the State of Minnesota and municipal
contributions from the City of Lakeville. On behalf state -aid payments from the State of Minnesota
are received initially by the City of Lakeville and subsequently remitted to the Relief Association.
These on- behalf state -aid payments in addition to the City's municipal contribution payments to the
Relief Association plan are recognized as revenues and expenditures in the City's general fund during
the period.
The Lakeville Fire Relief Association issues a publicly available financial report that includes
financial statements and required supplementary information. That report may be obtained by
writing to Lakeville Volunteer Firefighters' Relief Association, 20195 Holyoke Avenue, Lakeville,
Minnesota, 55044 or by calling (952) 985 -4480.
80
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 20— Lakeville Fire Relief Association (continued)
B. Current Plan Membership
At December 31, 2010, membership data related to the Association was as follows:
Members
C. Benefit Provisions
Retired members entitled to benefits,
but not yet receiving them 20
Active Plan Participants
Vested 2
Partially vested 44
Non - vested 35
Total plan membership 101
Authority for payment of pension benefits is established in Minnesota State Statue 69.77 and may be
amended only by the Minnesota State Legislature.
Twenty -Year Service Pension - Each member who is at least 50 years of age, has retired from the
Fire Department, has served at least 20 years of active service with the department before retirement
and has been a member of the Association in good standing at least 7 years prior to retirement, shall
be entitled to a lump sum service pension in the amount of $6,230 for each year of service (including
each year over 20) but not exceeding the maximum amount per year of service allowed by law for the
minimum average amount of available financing per firefighter. The Association's benefit amount
will remain at $6,230 for calendar year 2011.
Any member who retires after 20 years of service and is under the age of 50 is placed on the deferred
pension roll. All moneys deferred shall earn interest at 5% compounded annually.
Seven -Year Service,. but Less than Twenty -Year Service Pension - Each member who is at least 50
years of age; who has retired from the Fire Department who has served at least 7 years of active
service with the department before retirement, but has not served at least 20 years of active service;
and, who has been a member of the Association in good standing at least 7 years prior to retirement,
shall be entitled to a pro -rated lump sum service pension based on the percentages shown in the
following table:
81
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 20— Lakeville Fire Relief Association (continued)
g, Benefit Provisions (continued)
For Duty of
D. Contributions and Reserves
82
More Less %of
Than Than Pension
7 Years 8 Years - 48%
8 9 52%
9 10 56%
10 11 60%
11 12 64%
12 13 68%
13 14 72%
14 15 76%
15 16 80%
16 17 84%
17 18 88%
18 19 92%
19 20 96%
20 100%
The payment amount will be calculated by using the amount payable per year of service in effect at
the time of such early retirement, multiplied by the number of accumulative years of service,
multiplied by the appropriate percentage as defined above.
Death Benefit - Upon the death of any member who is in good standing, the Association will pay a
death benefit equal to the full annual service pension amount for each year the member has served.
Disability Benefits - In the event of total permanent disability incurred in the line of duty, a member
shall be eligible to collect a disability benefit in an amount equal to his/her full years of active service
on the Fire Department multiplied by the base sum pension benefit. The benefit is payable
immediately upon approval by the Association regardless of age. For total permanent disability not
incurred in the line of duty, a member shall be paid in accordance with the seven -year partial vesting
provision described above.
State Supplemental Benefits - Minnesota Statutes provide for the payment of a supplemental benefit
equal to 10% of a regular lump sum distribution up to a maximum of $1,000.
The Lakeville Fire Relief Association's funding policy provides for contributions from the State of
Minnesota and the City of Lakeville, in amounts sufficient to accumulate assets to pay benefits when
due.
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 20 — Lakeville Fire Relief Association (continued)
D. Contributions and Reserves (continued)
The Volunteer Firefighters' Relief Association Financing Guidelines Act of 1971 (Chapter 261 as
amended by Chapter 509 of Minnesota Statutes 1980) specifies minimum contributions required on
an annual. basis. The minimum support rates from the municipality and state aid are determined in
the amount required to meet the normal cost plus amortizing any existing prior year service costs
over a closed 10 -year period. The minimum contribution from the City of Lakeville and state aid is
determined as follows:
Normal. cost
+ Amortization payment on unfunded accrued liability prior to any change
+ Amortization contribution on unfunded accrued liability attributed to any change
= Total contribution required
Annual pension cost (APC) contributed from the State of Minnesota and the City of Lakeville for the
last three years are as follows:
State of City of Pension % of APC Pension
Year Minnesota Lakeville Contribution AEC Contributed Obligation
2010 $ 200,224 $
2009 191,073
2008 224,674 92,071
E. Funding Progress
Actuarial
Valuation Date
December 31,
2010
2009
2008
F. Additional Information:
Actuarial valuation date:
Actuarial valuation method:
Actuarial cost method:
Actuarial assumptions rate of
investment return:
Annual covered payroll:
Age and service retirement age:
Amortization method:
Amortization period:
Inflation rate:
178,380 $ 378,604 $ 378,604 100% $
191,073 191,073 100%
316,745 316,745 100%
Value
of Assets
$ 5,677,470
5,045,601
4,188,846
August 1, 2010
Fair Value
Entry age normal cost
5% per annum, compounded annually
None (all volunteer firefighters)
Assumed to occur at age 50. No turnover or early retirement
Level Dollar Closed
10 Years
Not applicable
83
Actuarial
Accrued (Unfunded) Funded
Liability Overfunded Ratio
$ 5,297,410 $ 380,060 107.2%
5,182,016 (136,415) 97.4%
4,876,743 (687,897) 85.9%
CITY OF LAKEVILLE, MINNESOTA
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2010
Note 21— Deferred Compensation Platt
The City offers its employees an optional deferred compensation plan created in accordance with Internal
Revenue Service Code Section 457. The plan is available to all City employees, which permits them to tax
defer a portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death or unforeseeable emergency. Linder provisions of Section 72(p) of the
Internal Revenue Code, a plan may permit participant loans once 457 plan assets are held in a trust. As of
the current fiscal year, the City's plan does not have a loan provision for its participants. All amounts of
compensation deferred under the plan must be held in trust for the exclusive benefit of plan participants
and/or beneficiaries. Investments are managed by the plan's trustee under various investment options or a
combination thereof. The choice of investment options is made by the participant.
Note 22 — Litigation
There are several lawsuits pending in which the City is involved. The City Attorney has indicated that
existing and pending lawsuit claims and other actions in which the City is a defendant are either covered by
insurance, fully reserved for by the City, or the cases are in the early stages of discovery, and accordingly,
the ultimate outcome cannot presently be determined. It is the opinion of City management that in each case
the possibility of material loss, net of amounts reserved is remote.
Note 23 — Conduit Debt
On April 7, 2008, the Housing and Redevelopment Authority (HRA) of Lakeville approved the issuance of
the Housing and Redevelopment Authority of Lakeville, Minnesota Education Facilities Revenue Note (All
Saints School Project), Series 2008. The HRA acted as the conduit for a bank qualified tax-exempt
refinancing of existing debt for All Saints School under the responsibility of All Saints Church of Lakeville,
Dakota County, Minnesota, a religious corporation organized under the laws of the State of Minnesota and
constituting a nonprofit corporation under the laws of the State of Minnesota. The note funds will provide
non - religious portions of the renovation and equipping of and construction of additions to, a school for
grades kindergarten through 8th grade known as All Saints School, owned and operated by the All Saints
Church, and located at 19795 Holyoke Avenue in Lakeville,
The HRA authorized the revenue note in the principal amount of $2,000,000. The note provides needed
financial assistance to a private - sector entity deemed to be in the public interest. Neither the HRA nor the
City is obligated in any circumstance for repayment of this note, and accordingly the note is not reported as
a Liability in the accompanying financial statements. .As of December 31, 2010, $2,000,000 remains
outstanding on this note.
84
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
Revenues
Property taxes
General property taxes
Current
Delinquent
Fiscal disparities
Mobile home tax
Gravel tax
Licenses and permits
Charges for services
General government
Public safety
Public works
Parks and recreation
Fines
Investment income
(continued)
Total property taxes
Intergovernmental
Market value homestead credit
Market value homestead mobile home credit
State -aid police
State -aid fire
State -aid streets
State -aid PERA
State police and fire grants
State other grants
Federal other grants
County and other grants
Dakota Communication Center rebate
Total intergovernmental
Total charges for services
Budget As Variance
Originally Final With Final
Adopted Budget Actual Budget
$14,133,759
163,459
1,760,094
41,500
16,098,812 16,098,812 16,271,094 172,282
104,096 104,096
85
902,341 902,341 992,379 90,038
19,070 19,070
335,887 335,887
190,209 196,224
374,962 374,962
21,303 21,303
31,864 31,864
200 200
6,600 33,680
44,000 44,337
65,529 65,529
1,089,624 1,123,056 1,137,358 14,302
179,058
289,311
299,547
523,663
$ 14,133,759 $ 14,170,393 $ 36,634
163,459 343,744 180,285
1,760,094 1,699,753 (60,341)
41,500 49,056 7,556
8,148 8,148
5,916
18,157
337,536
199,224
373,802
21,303
23,442
1,813
45,615
45,021
65,529
179,058 178,050
289,573 328,668
299,547 348,383
526,963 580,340
5,916
(913)
1,649
3,000
(1,160)
(8,422)
1,613
11,935
684
(1,008)
39,095
48,836
33,377
1,291,579 1,295,141 1,415,441 120,300
273,055 273,055 295,496 22,441
96,958 (7,138)
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
Budget As Variance
Originally Final With Final
Adopted Budget Actual Budget
Revenues (continued)
Donations $ 55,251 $ 60,396 $ 53,361 $ (7,035)
Miscellaneous 48,358 48,356 58,254 9,896
Total revenues 19,663,116 19,905,255 20,320,341 415,088
Expenditures
General government
Mayor and Council
Personnel services 50,224 50,224 48,621 1,603
Commodities 50 50 50
Other charges and services 60,452 60,452 54,711 5,741
Total Mayor and Council 110,726 110,726 103,332 7,394
Committees/Commissions
Personnel services 40,441 50,100 44,020 6,080
Commodities 908 2,107 1,776 331
Other charges and services 37,905 38,071 33,541 4,530
Total committees /commissions 79,254 90,278 79,337 10941
City administration
Personnel services 297,465 304,909 304,349 560
Commodities 850 850 353 497
Other charges and services 15,187 17,527 7,997 9,530
(continued)
Total city administration 313,502 323,286 312,699 10,587
86
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
Expenditures (continued)
General government (continued)
City Clerk
Personnel services $ 105,056 $ 105,056 $ 102,048 $ 3,008
Commodities 1,700 1,700 1,150 550
Other charges and services 60,458 60,458 51,451 9,007
Capital outlay 450 450 389 81
Legal counsel
Other charges and services
Planning
Personnel services 354,020 346,826 325,551 21,275
Commodities 27,571 27,571 26,309 1,262
Other charges and services 50,391 50,391 39,758 10,633
Community and economic development
Personnel services 249,979 250,129 248,645 1,484
Commodities 350 350 104 246
Other charges and services 24,488 30,022 20,999 9,023
Total community and economic development
Inspections
Personnel services 791,529 788,929 782,343 6,586
Commodities 20,464 20,464 12,116 8,348
Other charges and services 76,703 76,703 59,968 16,735
Capital outlay 2,772 2,772 2,747 25
(continued)
Budget As Variance
Originally Final With Final
Adopted Budget Actual Budget
Total City Clerk 167,664 167,664 155,018 12,646
Total inspections
87
65,132 65,132 63,109 2,023
Total planning 431,982 424,788 391,618 33,170
274,817 280,501 269,748 10,753
891,468 888,868 857,174 31,694
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
Expenditures (continued)
Total general government facilities
Total finance
Budget As Variance
Originally Final With Final
Adopted Budget Actual Budget
General government (continued)
General government facilities
Personnel services $ 200,567 $ 200,567 $ 195,575 $ 4,992
Commodities 43,406 43,406 23,765 19,641
Other charges and services 287,263 287,263 234,638 52,625
Capital outlay 2,772 2,772 2,747 25
534,008 534,008 456,725 77,283
Finance
Personnel services 489,359 489,359 489,830 (471)
Commodities 3,750 3,750 2,371 1,379
Other charges and services 61,422 61,422 56,372 5,050
Capital outlay 553 553 423 130
555,084 555,084 548,996 6,088
Information systems
Personnel services 295,766 295,766 293,499 2,267
Commodities 8,954 8,954 5,367 3,587
Other charges and services 140,153 140,153 122,780 17,373
Capital outlay 9,468 9,468 19,034 (9,566)
Total information systems 454,341 454,341 440,680 13,661
Human resources
Personnel services 245,336 245,336 238,818 6,518
Commodities 2,010 2,010 1,092 918
Other charges and services 46,577 54,827 60,968 (6,141)
Total human resources 293,923 302,173 300,878 1,295
Insurance coverage
Other charges and services 278,698 278,698 278,698
(continued)
Total general government 4,450,599 4,475,547 4,258,012 217,535
88
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
Expenditures (continued)
Public safety
Police
Personnel services
Commodities
Other charges and services
Capital outiay
Total police
Fire protection
Personnel services
Commodities
Other charges and services
(continued)
Total fire protection
Total public safety
Public works
Engineering
Personnel services
Commodities
Other charges and services
Total engineering
Street maintenance
Personnel services
Commodities
Other charges and services
Total street maintenance
Total public works
Budget As Variance
Originally Final With Final
da ted Budget Actual Budget
$ 6,223,339 $ 6,238,645 $ 6,120,119 $ 118,526
347,810 347,810 275,151 72,659
1,782,485 1,788,772 1,643,680 145,092
9,311 9,311 8,855 456
89
8,362,945 8,384,538 8,047,805 336,733
940,681 944,446 868,046 76,400
145,424 156,714 122,616 44,098
285,486 292,971 245,827 47,144
1,371,591 1,404131 1,236,489 167,642
9,734,536 9,788,669 9,284,294 504,375
647,833 649,333 631,904 17,429
15,292 15,292 8,991 6,301
57,091 58,591 38,275 20,316
720,216 723,216 679,170 44,046
1,429,994 1,517,976 1,531,089 (13,113)
681,945 681,945 770,442 (88,497)
245,117 250,322 221,624 28,698
2,357,056 2,450,243 2,523,155 (72,912)
3,077,272 3,173,459 3,202,325 (28,866)
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
Expenditures (continued)
Parks and recreation
Park maintenance
Personnel services
Commodities
Other charges and services
Total park maintenance
Recreation
Personnel services
Commodities
Other charges and services
Capital outlay
Total recreation
Arts Center
Personnel services
Commodities
Other charges and services
Capital outlay
Other
Total arts center
Total parks and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
(continued)
Budget As
Originally
Adopted
$ 1,494,618 $
270,730
386,886,_
90
2,152,234
325,814 325,814
25,700 25,700
246,479 249,779
2,082 2,082
600,075
Variance
Final With Final
Budget Actual Budget
1,495,645 $ 1,459,091 $ 36,554
270,730 226,876 43,854
„392,031,. 34 f,625. 50,406.
2,158,406 2,027,592 130,814
324,243 1,571
19,707 5,993
230,629 19,150
1,791 291
603,375 576,370 27,005
215,803 215,803 222,091 (6,288)
23,425 23,425 18,807 4,618
190,954 190,954 193,488 (2,534)
- 199 (199)
430,182 430,182 434,585 (4,403)
3,182,491 3,191,963 3,038,547 153,416
309,069
20,753,967 20,629,638 19,783,178 846,460
(890,851) (724,383) 537,163 1,261,546
CITY OF LAKEVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON
YEAR ENDED DECEMBER 31, 2010
(continued)
Other financing sources (uses)
Transfers from /(to)
Special Revenue - Communications Fund
Special Revenue - Environ. Resources Fund
Debt.Service - G.Q. Improvement Fund
Capital Projects - Building Fund
Capital Projects - Pavement Management Fund
Capital Projects - Equipment Fund
Capital Projects - Trail Improvement Fund
Capital Projects - Storm Sewer Fund
Enterprise - Liquor Fund
Enterprise - Utility Fund
Internal Service - Municipal Reserves Fund
Total other financing sources (uses)
Net change in fund balance
Fund balance, January 1
Budget As Variance
Originally Final With Final
Adopted Budget Actual Budget
$ 48,177
113,597
$ 42,069 $ 42,069 $
111,316 111,316
(107,490). (107,490)
(52,136) (52,136)
(140,374) (140,374)
(1,285,791) (1,285,791)
(1,400,000) (1,400,000)
37,153 37,153
142,036 143,814 1,778
260,339 260,339
43,140 43,140
91
40,827
142,036
280,461
43,140
668,238 (2,349,738) (2,347,960) 1,778
$ ^ (222,613) $ (3,074,121) (1,810,797) $1,263,324
11,206,725
Fund balance, December 31 $ 9,395,928
CITY OF LAKEVILLE, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2010
A. Budgetary Information
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principals. Annual
appropriated budgets are adopted for the General Fund and Special Revenue Funds. Budgeted amounts are
as originally adopted or as amended by the City Council. The City follows these procedures in establishing
the budgetary data reflected in the financial statements:
1. The City Administrator submits a proposed operating budget to the City Council.
2. Public hearings are conducted to obtain taxpayer comments.
3. Upon Council approval the budget is legally adopted and employs formal budgetary
integration during the year.
4. Expenditures may legally exceed budgeted appropriations at the fund level through
City Council action.
5. The legal level of budgetary control (Le., the level at which expenditures may not
legally exceed appropriations) is at the department level for the General Fund and
total expenditures for the Special Revenue Funds. The City Administrator has
authorization to expend funds in excess of the appropriation for iudividual line items.
6. Budget appropriations of all funds lapse at year -end to the extent they were not
encumbered. Encumbrances are re- appropriated in the following year's budget.
92
CITY OF LAKEVILLE, MINNESOTA
OTHER POST - EMPLOYMENT BENEFITS PLAN - SCHEDULE OF FUNDING PROGRESS
DECEMBER 31, 2010
Actuarial
Valuation
Date
Janaury 1, 2008 $ 290,424 $
Unfunded
Actuarial Actuarial Actuarial
Accrued Value of Accrued Funded Covered
Liability Plan Assets Liability Ratio Payroll
$ 290,424 $ - $ 11,365,890
93
Unfunded
Liability as a
Percentage
of Pa ro
2.6%
Special Revenue Funds - These funds are used to account for revenues and expenditures that
have a legally restricted use for a specific purpose.
Communications Fund
This fund accounts for franchise fees from cable TV provider operations.
Expenditures and other financing uses are used to finance the City's cable TV
channels and public communications, including Tong -term replacement of
equipment.
Compensation Liability Fund
This fund accounts for expenditures attributable to severance and paid time off
employee benefits disbursed at the time of termination including annual paid time
off cash -outs. Funding is provided by investment income and transfers.
Environmental Resources Fund
This fund accounts for those expenditures that are directly related to storm water
maintenance, education, lakes /streams monitoring and treatment, and recycling
activities.
Economic Development Fund
This fund accounts for a $125,000 Economic Recovery Grant received from the
State of Minnesota Department of Trade and Economic development in 1995.
The grant purpose is to provide loans to businesses expanding in or locating to
Lakeville. The fund also accounts for administrative fees received from the
issuance of conduit debt.
Debt Service Funds — These funds account for the accumulation of resources that are restricted to
the payment of long -term debt principal and interest, but excluding debt issued for and serviced by
an enterprise fund.
Tax Increment Fund
Debt issued to finance construction of public improvements in accordance with
approved tax increment plans. Property tax increments received from designated
tax increment financing districts are pledged to the payment of the bonds.
State -aid Revenue Fund
Debt issued to finance construction of State -aid street projects within the City.
The primary revenue source is municipal state aid allotments from the State of
Minnesota Department of Transportation.
Water Revenue Fund
Debt issued to finance the construction of wells, pump houses, towers, water
main systems, and the City's water treatment facility. Water connection fees are
pledged toward the repayment of the principal and interest on these bonds.
Arena Revenue Fund
Debt issued for the construction of the Lakeville Ames Ice Arena first and second
sheet of ice, spectator seating and locker rooms. Revenue sources include
donations from net operating ice arena revenues and other sources pledged to
the payment of the bonds. The Ice Center Refunding Bonds, Series 2008 A and
the 2005 Capital Dehumidification Lease - Purchase agreement are general
obligations that are backed by the full -faith and credit of the City. The Gross
Revenue Recreation Facility Bonds of 1999 are not general obligations and
accordingly are not backed by the full -faith and credit of the City.
(continued)
NONMAJOR GOVERNMENTAL FUNDS
Downtown Special Service District Fund
The Downtown Special Service District was created in 1998 pursuant to
Minnesota Statute 272. A service charge, payable with property taxes, is levied
against the commercial properties in the Downtown Business District for the
purpose of financing budgeted programs and activities within the District.
NONMAJOR GOVERNMENTAL FUNDS
Debt Service Funds (continued)
HRA Revenue Fund
The Lakeville Housing and Redevelopment Authority (HRA) issued the Public
Facility Lease Revenue Bonds, Series 2002 A for the construction of Lakeville's
fourth fire station and the acquisition of a new fire truck. Debt service will be
payable solely from lease payments to be made by the City pursuant to the lease
agreement between the Authority and the City.
The HRA also issued the HRA Ice Arena Lease Revenue Bonds, Series 2006 for
the Hasse single sheet ice arena facility. Debt service will be payable from
property taxes and lease payments to be made to the City pursuant to the lease
agreement between the Authority and independent School District 194. These
HRA bonds are not general obligations and accordingly are not backed by the full -
faith and credit of the City.
capital Projects Funds — These funds account for financial resources used in the acquisition of
capital facilities, equipment, and infrastructure (except those financed by enterprise funds).
Municipal State -aid Fund
This fund accounts for an annual allotment from the State of Minnesota Municipal
State -aid street construction account.
Pavement Management Fund
This fund accounts for pavement management activities relating to cracksealing,
patching, seal coating and overlays: These .major maintenance projects are
financed with property taxes.
Storm Sewer Fund
This fund accounts for fees and area charges to land developers for construction
of storm sewer systems.
Water Fund
This fund accounts for revenues derived primarily from connection charges
collected at the time building permits are issued and antenna site leases with
wireless communications companies. Funds are appropriated towards the
construction costs of water supply lines, wells and water storage facilities, and
provide the debt service to bonds issued to finance the construction of the City's
water treatment facility and other trunk infrastructure improvements.
Sanitary Sewer Fund
This fund accounts for sewer connection and area fees charged to land
developers for connecting to the City's sanitary sewer system, appropriations are
applied to the construction of sanitary sewer trunk systems.
Park Dedication Fund
This fund accounts for park dedication fees received from land developers. The
expenditures consist of acquiring and developing City parks and trails.
Trail Improvement Fund
This fund accounts for the long term maintenance, repairs and replacement of
City trails.
Tax Increment Fund
This fund accounts for revenue received from tax increment property districts that
does not require debt financing. The expenditures are for current and future
development of tax increment property.
Equipment Fund
This fund accounts for the purchase of equipment for general government, public
safety, public works, and park maintenance.
CITY OF LAKEVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2010
Cash and investments
investments held by trustee
Interest receivable
Taxes receivable
Unremitted
Delinquent
Accounts receivable
Due from other fund
Loan receivable
Special assessments
Unremitted
Delinquent
Deferred
Other
Liabilities
Salaries payable
Accounts payable
Due to other fund
Contracts payable
Deposits payable
Deferred revenue
ASSETS
Total assets
LIABILITIES AND FUND BALANCE
Total liabilities
Fund balance
Reserved for
Accrued compensated absences
Debt service
Encumbrances
Unreserved
Designated for subsequent year's expenditures
Undesignated
Total fund balance
Total liabilities and fund balance
Total
Special Debt Capital Nonmajor
Revenue Service Projects Governmental
Funds Funds Funds Funds
$2,131,980 $ 1,697,380 $11,991,072 $ 15,820,432
930,509 930,509
14,145 8,906 51,432 74,483
56,097
7,077
171,798 465,893
$2,317,923 $ 3,165,862 $13,133,660 $ 18,617,445
$ 8,196 $
26,614
94
3,299 4,568 7,867
86,659 86,659
1,032 425,470 890,813 1,317,315
39,141 425,470 1,630,350 2,094,961
823,807
10,129
1,444,846
2,740,392
71,722
18,777
26,060
100,000
210,000
2,561
780
267,658
393,598
127,819
25,854
663,751
100,000
210,000
2,561
780
267,658
393,598
$ $ 8,196
548,310 574,924
100,000 100,000
823,807
2,740,392
189,921 200,050
1,444,846
11,313,389
11,313,389
2,278,782 2,740,392 11,503,310 16,522,484
$2,317,923 $ 3,165,862 $13 $ 18,617,445
CITY OF LAKEVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED DECEMBER 31, 2010
Revenues
Property taxes
Tax increment
Licenses
Intergovernmental
Charges for services
Special assessments
Investment income
Dona)iprts
Miscellaneous
Total revenues
95
Special
Revenue
Funds.
572,649
33,768
634,791
24,007
3,10Q
3.536
Expenditures - current
General government 454,970
Public safety 62,445
Public works 391,537
Parks and recreation 1,876
Total expenditures - current 910,828
Expenditures - capital outlay
General government 113,627
Public safety
Public works
Parks and recreation
Total expenditures - capital outlay 113,627
Expenditures - debt service
Principal bond maturities
Principal lease maturities
Interest on debt
Fiscal charges
Total expenditures - debt service
Total expenditures 1,024,455
Excess (deficiency) of revenues over expenditures 247,396
Other financing sources (uses)
Transfers from other funds
Transfers to other funds
Refunding bonds issued
Payment on refunded bonds called
Premium on bonds issued
Total other financing sources (uses)
Net change In fund balance 50,658
Fund balance, January 1 2,228,124
Fund balance, December 31
Debt Capital
Service Projects
Funds Funds
$ - $ 324,716 $ 1,239,660
743,435 213,042
869,314 1,944,597
372,988 1,529,026
68,945
35,959 87,299
95,00.0. 4,016
356,462
1,271,851 2,441,412 5,443.047
2,340,000
7,338
1,269,990
50,117
3,667,445
192,333
746,925
1,863,537
362,757
3,165,552
3,667 445 3,165,552
(1,226,033) 2,277,495
8,572 1,459,586 2,886,465
(205,310) (60,300) (1,795,544)
2,680,000
(3,670,000)
- 99,322
(196,738) 508,608 1,090,921
(717,425) 3,368,416
3,457,817 8,134,894
Total
Nonmajor
Governmental
Funds
$ 1,564,376
956,477
572,649
2,847,679
2,536,805
68,945
147,265
102,116
359,998
9,156,310
454,970
62,445
391,537
1,876
910,828
305,960
746,925
1,863,537
382,757
3,279,179
2,340,000
7,338
1,269,990
50,117
3,667,445
7
1,298,858
4,354,623
(2,061,154)
2,680,000
(3,670,000)
99,322
1,402,791
2,701,649
13,820,835
$ 2,278,782 $2,740,392 $11,503,310 $16,522,484
CITY OF LAKEVILLE, MINNESOTA
SPECIAL REVENUE FUNDS (NONMAJOR)
COMBINING BALANCE SHEET
DECEMBER 31, 2010
ASSETS
Downtown
Compensation Environmental Economic Special
Communications Liability Resources Development Service District
Cash and investments $ 591,736 $ 818,166 $ 627,843 $ 61,743 $ 32,472 $ 2,131,980
Interest receivable . 3,925 5,621 4,218 381 14,145
Accounts receivable 146,945 - 23,821 1,032 171,798
Total assets $ 742,606 $ 823,807 $ 855,882 $ 62,124 $ 33,504 $ 2,317,923
LIABILITIES AND FUND BALANCE
LtaSiiities
Salaries payable $ 5,276 5 $ 2,920 $ $ - $ 8,196
Accounts payable 4,670 21,944 26,614
Contracts payable 3,299 3,299
Deferred revenue - 1,032 1,032
Total liabilities 9,946 28,163 1,032 39,141
Fund balance
Reserved for accrued compensated absences 823,807 823,807
Reserved for encumbrances 10,129 10,129
Unreserved - designated for subsequent
year's expenditures 732,660 617,590 62,124 32,472 1,444,846
Total fund balance 732,660 823,807 627,719 62,124 32,472 2,278,782
Total liabilities and fund balance $ 742 $ 823,807 $ 655,882 $ 62,124 $ 33,504 $ 2,317,923
96
CITY OF LAKEVILLE, MINNESOTA
SPECIAL REVENUE FUNDS (NONMAJOR)
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED DECEMBER 31, 2010
Downtown
Compensation Environmental Economic Special
Communications LiabUIty Resources Development Service District Total
Revenues
Licenses $ 572,649 $ - $ - $ - $ - $ 572,649
1 ntergovernmental
State -aid PERA 516 292 806
County and local grants 32,960 32,960
Charges for services 40 605,689 2,500 26,562 634,791
Investment income 6,662 9,540 7,159 646 24,007
Donations 2,600 500 3,100
Miscellaneous 3,536 - 3,536
Total revenues 586,003 9540 646 3,146 27,062 1,271,851
Expenditures
Current
General government 407,759 18,020 29,191 454,970
Public safety 62,445 62,445
Public works 1,478 390,059 391,537
Parks and recreation 1,876 1,876
Capital outlay 113,627 - 113,627
Total expenditures 521,386 B3,819 390,059 29,191 1,024,455
Excess (deficiency) of revenues
over expenditures
64,617 (74,279) 256,041 3,146 (2,129) 247,396
Other financing sources (uses)
Transfer from /(to)
General Fund (42,069) (111,316) (153,385)
Special Revenue - Communications Fund 7,806 7,806
Special Revenue - Comp. Liability Fund (7,806) (766) (8,572)
Special Revenue - Environ, Resources Fund 766 766
Enterprise - Utility Fund - (43,353) - (43,353)
Total other financing sources (uses) (49,875) 8,572 (155,435) (196,738)
Net change in fund balance 14,742 (65,707) 100,606 3,146 (2,129) 50,658
Fund balance, January 1 717,918 889,514 527,113 58,978 34,601 2,228,124
Fund balance, December 31 $ $ 823,807 $ 627,719 $ 62,124 $ 32,472 $ 2,278,782
97
CITY OF LAKEVILLE, MINNESOTA
DEBT SERVICE FUNDS (NONMAJOR)
COMBINING BALANCE SHEET
DECEMBER 31, 2010
ASSETS
Cash and investments
Investments held by trustee
Interest receivable
Taxes receivable
Unrernitted
Delinquent
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCE
Liabilities
Deferred revenue
Bonds
Tax State -aid Water Arena
Increment Revenue Revenue Revenue
$ 888,180 $ 15,677 $ 4,217 $215,048 $ 574,258 $ 1,697,380
930,509 930,509
3,089 2,886 786 2,145 8,906
39,844
1,251
418,393
$ 419,644 $
98
Fund balance
Reserved for debt service 931,113 18,563
HRA
Revenue
Total
16.,253 56,09.7
5,826 7,077
47,500 465,893
$ 1,350,757 $18 $ 4,217 $263,334 $ 1,528,991 $ 3,165,862
$ $ $ 5,826 $ 425,470
4,217 263,334 1,523,165 2,740,392
Total liabilities and fund balance $1,350,757 $18,563 $ 4,217 $263,334 $ 1,528,991 $ 3,165,862
CITY OF LAKEVILLE, MINNESOTA
DEBT SERVICE FUNDS (NONMAJOR)
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED DECEMBER 31, 2010
Revenues
General property taxes
Current and delinquent $ 46,806 $ $ $ - $ 243,850 $ 290,656
Fiscal disparities 5,443 - 28,617 34,060
Total general property taxes 52,249 - 272,467 324,716
Tax increment 743,435 743,435
intergovernmental - State -aid 869,314 869,314
Charges for services 101,699 271,289 372,988
Investment income 5,243 5,497 1,334 23,885 35,959
Donations 95,000 95,000
Total revenues 800,927 874,811 - 198,033 • 567,641 2,441,412
Expenditures - debt service
Principal bond maturities 375,000 575,000 1,020,000 115,000 255,000 2,340,000
Principal lease maturities 7,338 7,338
Interest on debt 157,413 293,154 249,000 67,415 503,008 1,269,990
Fiscal charges 6,464 38,320 489 574 4,270 50,117
Total expenditures - debt service 538,877 906,474 1,269,489 190,327 762,278 3,667,445
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfer from /(to)
Capital Projects
Tax State -aid Water Arena HRA
Increment Revenue Revenue Revenue Revenue Total
262,050 (31,663) (1,269,489) 7,706 (194,637) (1,226,033)
Storm Sewer Fund (60,300) (60,300)
Water Fund 1,269,489 1,269,489
Enterprise - Liquor Fund 190,097 190,097
Refunding bonds issued 2,680,000 2,680,000
Payment on refunded bonds called (940,000) (2,730,000) (3,670,000)
Premium on bonds issued - 99,322 99,322
Total other financing sources (uses) (1,000,300) 49,322 1,269,489 - 190,097 508,608
Net change in fund balance (738,250) 17,659 - 7,706 (4,540) (717,425)
Fund balance, January 1 1,669,363 904 4,217 255,628 1,527,705 3,457,817
Fund balance, December 31 $ 931,113 $ 18,563 $ 4,217 $263,334 $ 1,523,165 $ 2,740,392
99
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CITY OF LAKEVILLE, MINNESOTA
COMMUNICATIONS - SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED DECEMBER 31, 2010
Revenues
Licenses
Intergovernmental - State -aid PERA
Charges for services
Investment income
Donations
Miscellaneous
Total revenues
Expenditures • general government
Current
Personnel
Commodities
Other charges and services
Capital outlay
Total expenditures - general government
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfer from /(to)
General Fund
Special Revenue - Comp. Liability Fund
Total other financing sources (uses)
Net change in fund balance
Fund balance, January 1
Fund balance, December 31
Budget
As Originally
Adopted
$ 550,654 $ 550,654 $ 572,649
516 516 516
40
9,017 9,017 6,662
2,600
3,536
$ 71,972 34,679
104
560,187
312,348
10,337
86,842
22,205
432,232
127,955
(48,177)
(7,806)
(55,983)
Variance With
Final Final
Budget Actual Budget
560,187 586,003
312,848
10,337
107,349
114,457
311,282
5,608
90,869
113,627
544,991 521,386
15,196 64,617
(42,069) (42,069)
(7,806) (7,806)
(49,875) (49,875)
14,742 $ 49,421
717,918
$ 732,660
$ 21,995
40
(2,355)
2,600
3,536
25,816
1,566
4,729
16,480
830
23,605
49,421
CITY OF LAKEVILLE, MINNESOTA
COMPENSATION LIABILITY - SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED DECEMBER 31, 2010
Revenues
Investment income
Expenditures
Current - personnel
General government
Public safety
Public works
Parks and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfer from /(to)
Special Revenue - Communications Fund
Special Revenue - Environ. Resources Fund
Total other financing sources (uses)
Net change in fund balance
Fund balance, January 1
Fund balance, December 31
105
Budget Variance With
As Originally Final Final
ego p:1 Budget Actual Budget
$ 9,200 $ 8,920
10,673
6,833
2,498
21,014 18,020
62,374 62,445
3,680 1,478
4,468 1,876
20,004 91,536 83,819
(10,804) (82,616) (74,279)
7,806 7,806 7,806
766 766 766
8,572 8,572 8,572
$ 9,540 $ 620
$ (2,232) 74,044) (65,707) $ 8,337
889,514
$823,807
2,994
(
2,202
2,592
7,717
8,337
CITY OF LAKEVILLE, MINNESOTA
ENVIRONMENTAL RESOURCES - SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED DECEMBER 31, 2010
Revenues
Intergovernmental - State -aid PERA
Intergovernmental - local grant
Charges for services
Investment income
Total revenues
Expenditures - public works
Current
Personnel
Commodities
Other charges and services
Capital outlay
Total expenditures - public works
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfer from /(to)
General Fund
Special Revenue - Comp. Liability Fund
Enterprise - Utility Fund
Total other financing sources (uses)
Net change in fund balance
Fund balance, January 1
Fund balance, December 31
Budget Variance With
As Originally Final Final
Adopted Budget Actual Budget
106
$ 292 $ 292
25,201
601,003 601,003
6,316 6,316
607,611 632,812 646,100 13,288
190,107 190,107
9,407 9,407
302,575 327,776
3,002 3,002
$ 292 $
32,960
605,689
7,159
193,253
16,325
180,481
7,759
4,686
843
(3,146)
(6,918)
147,295
3,002
505,091 530,292 390,059 140,233
102,520 102,520 256,041 153,521
(113,597) (111,316) (111,316)
(766) (766) (766)
(39,703) (43,353) (43,353)
(154,066) (155,435) (155,435)
1 5 1,546] $ 52,915 100,606 $ 153,521
527,113
$ 627,719
CITY OF LAKEVILLE, MINNESOTA
ECONOMIC DEVELOPMENT - SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED DECEMBER 31, 2010
Revenues
Charges for services
Investment income
Total revenues
Fund balance, January 1
Fund balance, December 31
107
Budget Variance With
As Originally Final Final
Adopted Budget Actual Budget
$ 10,000
778
$ 10,000
778
$ 2,500 $ (7,500)
646 (132)
$ 10,778 $ 10,778 3,146 $ (7,632)
58,978
$ 62,124
CITY OF LAKEVILLE, MINNESOTA
DOWNTOWN SPECIAL SERVICE DISTRICT - SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE •
YEAR ENDED DECEMBER 31, 2010
Revenues
Charges for services
Donations
Miscellaneous
Total revenues
Budget Variance With
As Originally Final Final
Adopted Budget Actual Budget
$ 27,534 $27,534 $26,562 $ (972)
500 500
4,000 4,000 (4,000)
31,534 31,534 27,062 (4,472)
Expenditures - general government
Current
Personnel 9,720 9,720 10,221 (501)
Commodities 750 750 878 (128)
Other charges and services 21,530 21,530 18,092 3,438
Total expenditures - general government 32,000 32,000 29,191 2,809
Excess (deficiency) of revenues
over expenditures $ (466) U (2,129) $ (1,663)
Fund balance, January 1 34,601
Fund balance, December 31 $32,472
108
CITY OF LAKEVILLE, MINNESOTA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 2010
Escrow Fund
Balance Balance
January 1 Increases Decreases December 31
Assets
Cash and investments $ 5,478,426 $447.295 $ 673,989 $ 5,251,732
Liabilities
Deposits payable $ 5,478,426 $ 447,295 $ 673,989 $ 5,251,732
109
SUPPLEMENTAL INFORMATION
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF CHANGES IN BONDED INDEBTEDNESS
YEAR ENDED DECEMBER 31, 2010
Outstanding Outstanding
January 1 Issued Redeemed December 31
Governmental Activities:
General obligation bonds $ 58,105,000 $ - $ 3,195,000 $ 54,910,000
G.O. Improvement bonds 12,785,000 6,080,000 6,705,000
Tax increment bonds 4,905,000 1,315,000 3,590,000
State -aid street revenue bonds 7,075,000 2,680,000 3,305,000 6,450,000
Water connection revenue bands 6,735,000 1,020,000 5,715,000
Arena revenue bonds 1,545,000 115,000 1,430,000
HRA lease revenue bonds 11,035,000 255,000 10,780,000
Tatal governmental activity bonds 102,185,000 2,680,000 15,285,000 89,580,000
Businees -type Activities:
Liquor revenue bonds 3,985,000 - 295,000 3,690,000
Total bonded indebtedness $106,170_000 $ 2,680,000 $15,580,000 $ 93,270,000
110
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
issue Interest Principal Maturity Annual
Date Rate Date Amount Interest
General Obligation Bonds:
Equipment Certificates of 2006 A 10/15106
Principal and interest 3.85 211/11 $ 425,000 $ 8,500
Equipment Certificates of 2007 E 811/07
Principal and interest 4.25 2/1/11 430,000 28,263
Principal and Interest 4.25 2/1/12 450,000 9,563
Total 880,000 37,826
Equipment Certificates of 2008 A 10/1108
Principal and interest
2.50 2/1/11 270,000 3,375
Park Refunding Bonds of 2003 B 3/15/03
Principal and interest 3.50 2/1/11 355,000 62,519
Principal and Interest (call provision date) 3.50 2/1/12 375,000 49,744
Principal and interest 3.50 2/1/13 380,000 36,531
Principal and interest 3.625 2/1/14 395,000 22,722
Principal and interest 3.75 2/1/15 415,000 7,781
Total 1,920,000 179,297
Capital Improvement Bonds of 2004 A 1111104
(Central Maintenance Facility)
Principal and interest 3.25 2/1/11 215,000 616,175
Principal and interest 3.50 2/1/12 245,000 608,394
Principal and interest 4.00 2/1/13 280,000 598,506
Principal and interest 4.00 2/1/14 320,000 586,506
Principal and Interest {call provision date) 4.00 2/1/15 360,000 572,906
Principal and interest 4.25 2/1/16 400,000 557,206
Principal and interest 4.25 2/1/17 445,000 539,250
Principal and interest 4.25 2/1/18 495,000 519,275
Principal and interest 4.375 2/1/19 545,000 496,834
Principal and interest 4.50 2/1/20 600,000 471,413
Principal and interest 4.50 2/1/21 660,000 443,063
Principal and interest 4.50 2/1/22 720,000 412,013
Principal and interest 4.50 2/1/23 790,000 378,038
Principal and interest 4.50 2/1/24 860,000 340,913
Principal and interest 4.50 2/1/25 935,000 300,525
Principal and interest 4.50 2/1/26 1,015,000 256,650
Principal and interest 4.60 2/1/27 1,105,000 208,398
Principal and interest 4.60 2/1/28 1,195,000 155,498
Principal and interest 4.75 2/1/29 1,295,000 97,256
Principal and interest 4.75 2/1/30 1,400,000 33,250
Total 13,880,000 8,192,069
(continued)
111
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
General Obligation Bonds: (continued)
Capital Improvement Bonds of 2007 D 8/1107
(Police Station)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and Interest (tali provision date/
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Street Reconstruction Bonds of 2003 A 3115/03
Principal and interest
Principal and interest
Principal and interest
Principal and Interest (call provision date)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
(continued)
Issue Interest Principal Maturity Annual
Date Rate Date Amount Interest
112
5.00 2/1/11 $
5.00 2/1/12
5.00 2/1/13
5.00 211/14
5.00 2/1/15
5.00 2/1/16
5.00 2/1117
5.00 2/1/18
5.00 2/1/19
5.00 2/1/20
5.00 2/1/21
5,00 2/1/22
5.00 2/1/23
5.00 211.24
5.00 2/1/25
5.00 2/1/26
5.00 2/1/27
5.00 2/1/28
4.625 2/1/29
4.625 2/1/30
4.625 2/1/31
4.625 2/1/32
3.50 2/1/11
3.50 2/1/12
3.50 2/1/13
4.00 2/1/14
4.00 2/1/15
4.00 2/1/16
4.00 2/1/17
4.00 2/1/18
4.00 2/1/19
4.125 2/1/20
4.25 2/1/21
4.30 2/1/22
4.375 2/1/23
4.40 2/1/24
4.50 2/1/25
4.50 2/1/26
400,000
415,000
435,000
450,000
470,000
490,000
515,000
535,000
560,000
585,000
610,000
635,000
665,000
695,000
730,000
765,000
800,000
835,000
875,000
920,000
965,000
1,010,000
14,360,000
$ 693,863
673,488
652,238
630,113
607,113
583,113
557,988
531,738
504,363
475,738
445,863
414,738
382,238
348,238
312,613
275,238
236,113
195,238
154,128
112,619
69,028
23,356
8,879,165
640,000 510,483
660,000 487,733
680,000 464,283
700,000 438,383
725,000 409,883
750,000 380,383
700,000 351,383
730,000 322,783
760,000 292,983
795,000 261,386
830,000 227,351
865,000 191,116
905,000 152,722
950,000 112,025
990,000 68,850
1,035,000 23,288
12,715,000 4,695,035
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
General Oblitlation Bonds: (continued)
Street Reconstruction Bonds of 2005 A 1211/05
Principal and interest
Principal and interest
Principal and interest
Principal and Interest
Principal and interest
Principal and Interest (call provision date)
Principal and interest
Prindpat and triterest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Street Reconstruction Bonds of 2007 11
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and Interest (call provision date)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
(continued)
Issue Interest Principal Maturity Annual
Date Rate Date Amount Interest
12/15/07
113
3.85 2/1/11
3.85 2/1/12
3.85 2/1/13
3.85 2/1/14
3.75 2/1/15
3.75 2/1/16
3.85 2/1/17
3.85' 2/1118'
3.90 2/1/19
3.90 2/1/20
4.00 2/1/21
4.00 2/1/22
4.10 2/1/23
4.10 2/1/24
4.20 2/1/25
4.20 2/1/26
3.50 2/1/11
3.50 2/1/12
3.50 2/1/13
3.50 2/1/14
4.00 2/1/15
4.00 2/1/16
4.00 2/1/17
4.00 2/1/18
4.00 2/1/19
4.00 2/1/20
4.10 2/1/21
4.125 2/1/22
4.20 2/1/23
4.375 2/1/24
4.375 2/1/25
4.50 2/1/26
4.50 2/1/27
4.50 2/1/28
$ 130,000
135,000
140,000
145,000
150,000
155,000
160,000
170,000
175,000
180,000
190,000
195,000
205,000
215,000
225,000
235,000
2,805,000
$ 108,600
103,499
98,205
92,719
87,115
81,396
75,410
69,058
62,373
55,450
48,140
40.440
32,338
23,728
1
4,935
998,001
105,000 109,358
110,000 105,595
115,000 101,658
120,000 97,545
125,000 92,945
125,000 87,945
130,000 82,845
140,000 77,445
145,000 71,745
150,000 65,845
155,000 59,668
160,000 53,190
170,000 46,320
175,000 38,922
185,000 31,047
190,000 22,725
200,000 13,950
210,000 4,725
2,710,000 1,163,473
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTRDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
General Obligation Bonds: (continued)
Taxable Street Reconstruction Bonds of 2009 A
(Build America Bonds) 12/30/09
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and Interest (call provision date)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Total General Obligation Bonds
G.O. Improvement Bonds:
Improvement Refunding Bonds of 2007 B 211/07
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
(continued)
Issue Interest Principal Maturity Annual
Date Date Date Amount Interest
114
1.00 2/1/11 $
1.55 2/1/12
2.20 2/1/13
2.70 2/1/14
3.00 2/1/15
3.50 2/1/16
4.00 2/1117
4.25 2/1/18
4.50 2/1/19
4.65 2/1/20
4.75 2/1/21
4.90 2/1/22
5.00 2/1/23
5.20 2/1/24
5.30 2/1/25
5.40 2/1/26
5.50 2/1/27
5.65 2/1/28
5.80 2/1(29
5.95 2/1/30
170,000
195,000
200,000
205,000
205,000
210,000
21'5,000
225,000
230,000
235,000
245,000
250,000
260,000
270,000
280,000
290,000
300,000
310,000
320,000
330,000
4,945,000
$ 220,385
218,024
214,313
209,345
203,503
196,753
188,778
179,696
169,740
159,101
147,819
135,875
123,250
109,730
95,290
80,040
63,960
46,953
28,915
9,818
2,801,288
$ 54,910,000 $ 26,958,029
3.875 2/1/11 $ 380,000 $ 44,369
3.875 2/1/12 380,000 29,644
3.875 2/1/13 295,000 16,566
3.875 2/1/14 95,000 9,009
3.875 2/1/15 90,000 5,425
3.875 2/1/16 95,000 1,841
1,335,000 106,854
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE 01? BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
G.O. Improvement Bonds: (continued)
improvement Bonds of 2007 F
Principal and interest
Principal and interest
Principal and interest
Principal and Interest (call provision date)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Improvement Bonds of 2008 A
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Improvement Refunding Bonds of 2009 B
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Total G.O. Improvement Bonds
(continued)
Issue Interest Principal Maturity Annual
Date Rate Date Amount Inte est
811107
10/1/08
12/30/09
115
4.00 2/1/11 $ 330,000 $
4.00 2/1/12 55,000
4.00 2/1/13 50,000
4.00 2/1/14 50,000
4.00 2/1/15 50,000
4.00 2/1/18 50,000
4.00 2/1/17 50,000
4.125 2/1/18 50,000
685,000
2.50 2/1/11 190,000
2.70 2/1/12 35,000
3.00 2/1/13 30,000
3.10 2/1/14 30,000
3.25 2/1/15 30,000
3.75 2/1/16 30,000
3.75 2/1/17 30,000
3.75 2/1/18 30,000
3.75 2/1/19 30,000
435,000
2.00 2/1/11 825,000
2.00 2/1/12 515,000
2.00 2/1/13 510,000
2.00 2/1/14 385,000
2.00 2/1/15 380,000
2.50 2/1/16 390,000
2.75 2/1/17 375,000
3.00 2/1/18 355,000
3.00 2/1/19 360,000
3.00 2/1/20 155,000
4,250,000
20,913
13,213
11,113
9,113
7,113
5,113
3,088
1,031
70,697
10,625
7,778
6,855
5,940
4,988
3,938
2,813
1,688
563
45,188
90,213
76,813
66,563
57,613
49,963
41,288
31,256
20,775
10,050
2,325
446,859
$ 6,705,000 $ 669(598
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
Tax Increment Bonds:
Issue Interest Principal Maturity Annual
Date Rate gilt& Argpunt interest
Tax Increment Refunding 2/1107
Bonds of 2007 A
Principal and interest 4.00 211/11 $ 70,000 $ 85,961
Principal and interest 4.00 2/1/12 70,000 83,161
Principal and interest 4.00 211/13 55,000 80,661
Principal and interest 4.00 2/1/14 70,000 78,161
Principal and interest 4.00 2/1/15 210,000 72,561
Principal and Interest (call provision date) 4.00 2/1/16 220,000 63,961
Principal and interest 4.00 2/1/17 220,000 55,161
Principal and interest 4.00 2/1/18 230,000 46,161
Principal and interest 4.00 2/1/19 240,000 36,761
Principal and interest 4.125 2/1/20 245,000 26,908
Principal and interest 4.125 2/1/21 260,000 16,493
Principal and interest 4.20 2/1/22 265,000 5,565
Total 2,155,000 651,515
Taxable Tax Increment Refunding 211/07
Bonds of 2007 C
Principal and interest 5.10 2/1/11 120,000 22,695
Principal and interest 5.10 2/1/12 120,000 16,575
Principal and interest 5.10 2/1/13 130,000 10,200
Principal and interest 5.10 2/1/14 135,000 3,443
Total 505,000 52,913
Tax Increment Refunding 12130/09
Bonds of 2009 B
Principal and interest 2.00 2/1/11 220,000 16,400
Principal and interest 2.00 2/1/12 235,000 11,850
Principal and interest 2.00 2/1/13 235,000 7,150
Principal and interest 2.00 2/1/14 240,000 2,400
Total 930,000 37,800
Total Tax Increment Bonds
State -aid Street Revenue Bonds:
$ 3 $ 742,228
State -aid Street Bonds of 2001 C 1211/01
Principal and Interest (call provision date) 4.35 4/1/11 $ 50,000 $ 32,068
Principal and interest 4.70 4/1/12 50,000 29,805
Principal and interest 4.70 4/1/13 55,000 27,338
Principal and interest 4.70 4/1/14 55,000 24,753
Principal and interest 4.70 4/1115 60,000 22,050
(continued)
116
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
State - aid Street Revenue Bonds: (continued)
Issue Interest Principal Maturity Annual
210 Rate Date Amount Interest
State -aid Street Bonds of 2001 C (continued)
Principal and interest 4.70 4/1/16 $ 60,000 $ 19,230
Principal and interest 4.95 4/1117 55,000 16,211
Principal and interest 4.95 4/1/18 70,000 12,870
Principal and interest 4.95 4/1/19 70,000 9,405
Principal and interest 4.95 4/1/20 75,000 5,816
Principal and interest 4.95 4/1/21 80,000 1,980
Total 690,000 201,526
State -aid Street Bonds of 2007 G 12/15/07
Principal and interest 4.00 4/1/11 335,000 116,500
Principal and Interest 4.00 4/1/12 345,000 102,900
Principal and interest 4.00 4/1/13 365,000 88,700
Principal and interest 4.00 4/1/14 375,000 73,900
Principal and interest 4.00 4/1/15 390,000 58,600
Principal and Interest (call provision date) 4.00 4/1/16 405,000 42,700
Principal and interest 4.00 4/1/17 425,000 26;100
Principal and interest 4.00 4/1/18 440,000 8,800
Total 3,080,000 518,200
State -aid Street Refunding 1/1/10
Bonds of 2010 A
Principal and interest 2.00 4/1/11 225,000 69,600
Principal and interest 2.00 4/1/12 240,000 64,950
Principal and interest 2.00 4/1/13 255,000 60,000
Principal and interest 2.00 4/1/14 255,000 54,900
Principal and interest 2.00 4/1/15 260,000 49,750
Principal and interest 3.00 4/1/16 275.000 43,025
Principal and interest 3.00 4/1/17 280,000 34,700
Principal and interest 3.00 4/1/18 285,000 26,225
Principal and interest 3.25 4/1/19 300,000 17,075
Principal and interest 4.00 4/1/20 305,000 6,100
Total 2,680,000 426,325
Total State -aid Street Revenue Bonds $ 6,450,000 $ 1,146,051
Water Connection Revenue Bonds:
Water Revenue Refunding 1111/04
Bonds of 2004 B
Principal and interest 4.00 2/1/11 $ 1,085,000 $ 206,900
Principal and interest 4.00 2/1/12 870,000 167,800
Principal and Interest 4.00 2/1/13 895,000 132,500
(continued)
117
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
Issue
Date
Water Connection Revenue Bonds: (continued)
Water Revenue Refunding Bonds of 2004 B (continued)
Principal and Interest (call provision date) 4.00 2/1/14 $
Principal and interest 4.00 2/1/15
Principal and interest 4.00 2/1/16
Total Water Connection Revenue Bonds
Arena Revenue Bonds:
Ice Center Refunding Bonds of 2008 A 1011/08
(Ames Ice Arena)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Gross Revenue Recreation Facility
Bonds of 1999 (Ames Ice Arena)
Interest
Interest
Interest
Interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Total Arena Revenue Bonds
HRA Lease Revenue Bonds:
HRA Public Facility Lease Revenue 4115/02
Bonds of 2002 A (Fire Station #4)
Principal and interest
Principal and Interest (call provision date)
Principal and interest
(continued)
411/99
118
Interest Principal Maturity Annual
Rate Date Amount interest
890,000 $
960,000
1,015,000
$ 5 715,000 $ 684,100
2.50 2/1/11 $ 125,000 $ 17,708
2.70 2/1/12 130,000 14,390
3.00 2/1/13 130,000 10,685
3.10 2/1/14 135,000 6,643
3.25 2/1/15 140,000 2,275
660,000 51,701
5.30
5.30
5.30
5.30
5.30
5.30
5.30
5.40
5.40
2/1/11 & 8/1/11
2/1/12 & 8/1/12
2/1/13 & 8/1/13
2/1/14 & 8/1/14
8/1/15
8/1/16
8/1/17
8/1/18
8/1/19
135,000
145,000
155,000
165,000
170,000
770,000
$ 1,430,000
96,800
59,800
20,300
41,145
41,145
41,145
41,145
41,145
33,990
26,305
18,090
9,180
293,290
$ 344,991
4.60 2/1/11 $ 105,000 $ 93,393
4.70 2/1/12 110,000 88,393
4.80 2/1/13 115,000 83,048
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEI3TEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
HRA Lease Revenue Bonds: (continued)
HRA Public Facility Lease Revenue
Bonds of 2002 A (Fire Station #4, continued)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Prin'cipal and'interest
Principal and interest
Principal and interest
Principal and interest
Total
HRA Ice Arena Lease Revenue
Bonds of 2006 (Hasse Ice Arena)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest (call provision date)
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Principal and interest
Total
Total HRA Lease Revenue Bonds
Total Governmental Activity Bonds
(continued)
Issue Interest _,__ Principal Maturity Annual
Date Rate Date Amount Interest
12/01/06
119
4.90 2/1/14 $
5.00 211 /15
5.00 2/1/16
5.13 2/1/17
5.13 2/1/18
5.25 2/1/19
5.25 2/1120
5.25 2/1/21
5.35 2/1/22
5.35 211/23
4.25 2/1/11
425 2/1/12
4.25 2/1/13
4.25 2/1/14
425 2/1/15
4.25 2/1/16
4.50 2/1/17
4.50 2/1/18
4.50 2/1/19
4.50 2/1/20
4.50 2/1/21
4.50 2/1/22
4.50 2/1/23
4.50 2/1/24
4.50 2/1/25
4.50 2/1/26
4.625 2/1/27
4.625 2/1/28
4.625 2/1/29
4.625 2/1/30
4.625 2/1/31
4.625 2/1/32
125.000
130,000
135,000
140,000
150,000
155,000
165,000
175,000
185,000
190,000
1,880,000
175,000
190,000
210,000
225,000
245,000
270,000
315,000
340,000
355,000
370,000
390,000
415,000
435,000
450,000
470,000
495,000
520,000
545,000
575,000
605,000
635,000
670,000
8,900,000
$ 77,225
70,913
64,288
57,325
49,894
41,981
33,581
24,656
15,114
5,083
704,894
397,931
390,175
381,675
372,431
362,444
351,500
338,675
323,938
308,300
291,988
274,888
256,775
237,650
217,738
197,038
175,325
152,163
127,534
101,634
74,347
45,672
15,494
5,395,315
10,780,000 $ 6
$ 89,580,000 $ 365645,206
CITY OF LAKEVILLE, MINNESOTA
SCHEDULE OF BONDED INDEBTEDNESS AND ANNUAL INTEREST PAYABLE
DECEMBER 31, 2010
Liquor Revenue Bonds:
Issue Interest , Principal Maturity Annual
Date Rate Date Amp Ant interest
Liquor Revenue Bonds of 2007 511107
Principal and interest 5.00 2/1/11 $ 145,000 $ 180,875
Principal and interest 5.00 2/1/12 150,000 173,500
Principal and interest 5.00 211113 160,000 165,750
Principal and Interest 5.00 2/1/14 165,000 157,625
Principal and interest 5.00 2/1/15 175,000 149,125
Principal and interest 5.00 211/16 180,000 140,250
Principal and Interest (call provision date) 5.00 2/1/17 190,000 131,000
Principal and'interest 5.00" 2/1/18 200 ;000` 121,250
Principal and interest 5.00 2/1/19 210,000 111,000
Principal and interest 5.00 2/1/20 220,000 100,250
Principal and interest 5,00 2/1/21 235,000 88,875
Principal and interest 5.00 2/1/22 245,000 76,875
Principal and interest 5.00 2/1/23 255,000 64,375
Principal and interest 5.00 2/1/24 270,000 51,250
Principal and interest 5.00 2/1/25 285,000 37,375
Principal and interest 5.00 2/1/26 295,000 22,875
Principal and interest 5.00 2/1/27 310,000 7,750
Total Business -type Activity Bonds $ 3,690,000 $ 1,780,000
Total Bonded Indebtedness and Annual interest Payable $ 93,270,000 $ 38,425,206
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STATISTICAL SECTION
This part of the City of Lakeville's Comprehensive Annual Financial Report presents detailed
information as a context for understanding the current year's financial statements, note disclosures,
and required supplementary information about the government's overall financial health. This
information has not been audited by the independent auditor.
Financial Trends
These schedules present trend information that may assist the reader in assessing the City's
financial performance from a historical perspective.
Net Assets by Category - Government -wide
Changes in Net Assets - Governmental Activities
Changes in Net Assets - Business -type Activities
Changes in Net Assets - Total Governmental and Business -type Activities
Fund Balances - Governmental Funds
Changes in Fund Balances - Governmental Funds
Revenue Capacity
These schedules contain information that may assist the reader in assessing the City's most
significant revenue source, the property tax.
Tax Capacity Valuation and Assessor's Taxable Market Value of Taxable Property
Property Tax Rates - Direct and Overlapping Governments
Principal Property Taxpayers
Property Tax Levy and Collections
Debt Capacity
These schedules provide information that may assist the reader in evaluating the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
Ratio of Outstanding Debt by Type
Ratio of Net Bonded Debt Outstanding
Direct and Overlapping Governmental Debt
Legal Debt Margin
Pledged Revenue Coverage
Demographic and Economic Information
These schedules present demographic and economic indicators that are commonly used for
financial analysis in understanding the City's ongoing and future Financial status.
Demographic and Economic Statistics
Principal Employers
Commercial and Industrial Building Permits Issued
Operating Information
These schedules contain service and infrastructure indicators that may assist the reader in
understanding the information In the City's financial report as it relates to the services the City
provides and the activities it performs.
Employees by Function /Program (Full -Time Equivalent)
Operating Indicators by Function
Capital Assets Statistics by Function
Source:
Unless otherwise noted, the information contained within these schedules is derived from
comprehensive annual financial reports for the relevant year.
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CITY OF LAKEVILLE, MINNESOTA
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
City of Lakeville
Direct Rates
General Referendum
Levy (Tax Levy (Market
Capacity- Value -
based) based)
Overlapping Rates
Total Direct and
Dakota County School District Special
General Referendum General Referendum Districts
Levy (Tax Levy (Market Ind. Levy (Tax Levy (Market Levy (Tax Tax Market
Fiscal Capacity- Value- School Capacity- Value- Capacity- Capacity- Value -
Year based based District based) based) based) bwel bas
Overlapping Rates
2001 20.079% 0.01124% 25.320% 0.01124% 192 60.936% 0.15268% 2.356% 108.691% 0.17516%
194 56.209% 0.28882% 103.964% 0.31130%
196 53.249% 0.10648% 101.004% 0.12896%
2002 34.545% 0,00985% 33.102% 0.00985% 192 34.095% 0.02491% 3.550% 105.292% 0.04461%
194 25.984% 0.10559% 97.181% 0.12529%
196 28.883% 0.17859% 100.080% 0.19829%
2003 32.944% 0.00851% 32.463% 0.00935% 192 39.614% 0.03539% 3.904% 108.925% 0.05325%
194 30.962% 0.12336% 100.273% 0.14122%
196 27.638% 0.16120% 96.949% 0.17906%
2004 30.050% 0.00729% 30.300% 0.00754% 192 35.599% 0.04003% 3.518% 99.467% 0.05486%
194 26.901% 0.20593% 90.769% 0.22076%
196 26,740% 0.13978% 90,608% 0.15461%
2005 31.326% 0.00616% 28267% 0.00666% 192 36.540% 0.04078% 3.752% 99.885% 0.05360%
194 25.411% 0.17349% 88.756% 0.18631%
196 22.065% 0.10862% 85.410% 0.12144%
2006 31.610% 0.00830% 26.318% 0.00592% 192 43.708% 0.05599% 3.780% 105.416% 0.07021%
194 25.670% 0.17079% 87.378% 0.18501%
196 27.554% 0.22437% 89.262% 0.23859%
2007 31.583% 0.00743% 25.127% 0.00516% 192 44.190% 0.05679% 3.771% 104.671% 0.06938%
194 25.252% 0.16866% 85.733% 0.18127%
196 23.607% 0.20824% 84.088% 0.22083%
2008 34.195% 0.00714% 25.184% 0.00471% 192 45.831% 0.13781% 3.749% 108.959% 0.14966%
194 26,272% 0.17167% 89.400% 0.18352%
196 21.136% 0.21274% 84.264% 0.22459%
2009 33.973% 0.00696% 25.821% 0.00471% 192 49.238% 0.13660% 4.301% 113.333% 0.14827%
194 27.062% 0.17413% 91.157% 0.18580%
196 21.109% 0.21032% 85.204% 0.22199%
2010 36.624% 0.00738% 27,269% 0.00501% 192 53.452% 0.14742% 4.987% 122.332% 0.15981%
194 27.714% 0.18363% 96.594% 0.19602%
196 25.391% 0.22268% 94.271% 0.23507%
Notes:
Taxes are determined by multiplying the taxable net tax capacity by the tax capacity rate and market
value based rate expressed as a percentage. The foregoing tax capacity rates do not reflect reductions
for state property tax credits credits.
Special Districts include: Metropolitan Mosquito Control, Metropolitan Council, Metropolitan Transit
District, Dakota County Community Development Agency, Light Rail Authority, and Vermillion River
Watershed District.
Source: Dakota County Auditor and Treasurer's Office.
133
CITY OF LAKEVILLE, MINNESOTA
Principal Property Taxpayers
Fiscal Year Ended December 31, 2010 and December 31, 2001
Percentage Percentage
Taxable of Taxable Taxable of Taxable
Net Tax Net Tax Net Tax Net Tax
Capacity Capacity Capacity Capacity
Plat_tcloaf Property Taxoaver Tvoe of Business Value Rank Value Value Bank Value
Lakeville 2004 LLC Commercial $ 333,532 1 0.5%
Heritage Commons LLC Retail 327,592 2 0.5%
Dakota Electric Association Utility 310,076 3 0.5% $ 400,749 1 1.1%
Argonne Investments LLC Retail 259,673 4 0.4%
Target Corporation Retail 256,414 5 0.4%
LTF Real Estate Company Inc. Real estate 248,628 6 0.4%
FR/CAL Interstate South LLC Real estate 226,950 7 0.3%
Walker Highview Hills LLC Senior Housing 220,599 8 0.3%
Southfork Apts. L trr, Partnership Apartments 191,100 9 0.3% 271,657 2 0.7%
Muller Family Theatres of Lakeville Commercial 190,496 10 0.3% 250,208 3 0.7%
International Home Food, Inc. Food manufacturing 249,662 4 0.7%
Xcet Energy Utility 220,374 5 0.6%
Mills Property Inc. Retail 214,547 6 0.6%
CenterPoint Energy Utility 181,644 7 0.5%
Fulford Group LLC Warehouse distribution 165,865 8 0.4%
Meriltat industries Wood cabinet mfg. 165,100 9 0.4%
Hasse Real Properties LLC Commercial - 158,041 10 0.4%
Total principal taxpayers 2,565,060 3.9% 2,277,847 6.1%
All other taxpayers 62,477,402 96,1% 35,830,999 93.9%
Total City of Lakeville taxpayers $65,042,462 100.21 $38, 108,846 IOUS.
Source: Dakota County Auditor and Treasurer's Office.
134
2010 2001
CITY OF LAKEVILLE, MINNESOTA
Property Tax Levy and Collections
Last Ten Fiscal Years
Percentage
Current of Total
Year Collection of Current Collection Collections
Fiscal Tax Levy Year's Levy of Prior Total To Tax Levy
Year Certified Amount percent Year Levy Collections Certified
2001 $ 10,141,595 $ 10,055,085 99.15% $ 82,496 $ 10,137,581 99.96%
2002 11,393,492 11,289,918 99.09% 101,046 11,390,964 99.98%
2003 (1) 11,924,189 11,144,545 93.46% 114,295 11,258,840 94.42%
2004 (1) 12,838,429 12,068,753 94.00% 116,556 12,185,309 94.91%
2005 (1) 15,232,317 14,460,888 94.94% 96,209 14,557,097 95.57%
2006 (1) 17,741,065 16,943,054 95.50% 157,962 17,101,016 96.39%
2007 19,942,716 19,652,615 98.55 % 282,973 19,935,588 99.96%
2008 (1) 22,690,614 22,023,558 97.06% 382,177 22,405,735 98.74%
2009 (1) 23,527,163 22,473,650 95.52% 344,135 22,817,785 96.98%
2010 (1) 24,041,653 22,982,110 95.59% 22,982,110 95.59%
Note: (1) The State of Minnesota unalloted state aid for property tax relief -
Market Value Homestead Credit (MVHC) in the fiscal years as follows:
As a
MVHC Percentage
Loss of Tax Levy
Fiscal Year Amount Certified
2002 $
2003 562,069 4,71%
2004 611,064 4.76%
2005 607,574 3.99%
2006 632,238 3.56%
2007
2008 305,479 1,35%
2009 630,561 2.68%
2010 731,494 3.04%
135
CITY OF LAKEVILLE, MINNESOTA
Ratio of Outstanding Debt by Type
Last Ten Fiscal years
Governmental Activities Business-type Total
General General - Activity Total 1 of Outstanding
Fiscal Obligation Other Capital Obligation Revenue Outstanding Population Personal Debt
Year Bons Bonds Leases Cagltal Note Bond Debt LZ Income (21 Per Capita
2001 $51,665,000 $1,135,000 $283,850 $ $ 1,170,000 $54,253,850 44,751 3.2 $ 1,212
2002 47,660,000 3,640,000 241,724 220,144 1,065,000 52,826,868 46,285 3.0 1,141
2003 64,965,000 3,610,000 263,192 179,900 955,000 69,973,092 47,523 3.7 1,472
2004 85,560,000 3,485,000 219,888 136,900 840,000 90,241,788 49,097 4.5 1,838
2005 87,270,000 3,355,000 210,142 720,000 91,555,142 51,472 4.2 1,779
2006 72,110,000 12,445,000 183,697 590,000 85,328,697 52,323 3.7 1,631
2007 92,180,000 12,300,000 152,037 4,410,000 109,042,037 53,829 4.4 2,026
2008 86,390,000 12,100;000 119,061 4,265,000 102,874,061 54,828 4.0 1,876
2009 90,380,000 11,805,000 112,090 3,985,000 106,282,090 55.772 4.3 1,906
2010 78,800,000 10,780,000 104,752 3,690,000 93,374,752 55,954 NIA 1.669
Source:
(1) Metropolitan Council as of April 1, (except for 2010 Federal Census, 2009 City estimate).
(2) See Demographic and Economic Statistics page.
136
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CITY OF LAKEVILLE, MINNESOTA
Direct and Overlapping Governmental Debt
As of December 31, 2010
Debt Applicable to Taxable
Debt Net Tax Capacity in the City
Governmental Unit Outstanding (2) Percentage (2) Amount
Overlapping Debt (1)
Independent School District
194 (City of Lakeville) $ 184,612,202 72.40% $ 133,659,234
192 (City of Farmington) 218,904,000 19.20% 42,029,568
196 (Cities of Rosemount, Apple Valley, Eagan) 130,168,730 5.50% 7,159,280
Dakota County 63,530,000 14.00% 8,894,200
Special District
Metropolitan Transit 243,070,000
Metropolitan Council 17
Direct Debt (3)
City of Lakeville net bonded debt
Notes:
(2) Debt figures and applicable percentages for other than the City of Lakeville are supplied
by the City's fiscal consultant Springsted.
138
2.00%
1.80%
Total overlapping debt 196,917,602
57.282,684 100.00% 57,282,684
Total direct and overlapping debt $ 254,200,286
(1) Overlapping governments are those that coincide, at least in part, with the geographical
boundaries of the City. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is bome by the residents and businesses of the City of Lakeville.
This process recognizes that, when considering the government's ability to issue and repay
long -term debt, the entire debt burden borne by the residents and businesses should be taken
into account. However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying the debt, of each overlapping government.
(3) City of Lakeville direct debt includes gross bonded debt and excludes debt payable from other
sources supporting G.O. improvement bonds, tax increment bonds, state -aid street revenue bonds,
water connection revenue bonds, arena revenue bonds, HRA public facility lease revenue bonds,
liquor revenue bonds, and debt service monies available to pay both principal and interest.
4,861,400
313,920
CITY OF LAKEVILLE, MINNESOTA
Legal Debt Margin
Last Ten Fiscal Years
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Assessor's
Taxable
Market
Valuation
$ 2,414,628,100
2,767,785,500
3,188,207,500
3,742,588,600
4,361,601,400
5,034,819,600
5,642,591,100
5,951,319,600
6,024,665,500
5,736,602,200
Legal Debt Margin Calculation:
Assessor's taxable market valuation
Legal debt limit:
3% of Assessor's taxable market valuation
Amount of debt applicable to legal debt limit:
Gross bonded debt
Less debt payable from sources other than taxes:
G.O. Improvement bonds
Tax increment bonds
State -aid street revenue bonds
Water connection revenue bonds
Arena revenue bonds
HRA public facility lease revenue bonds
Liquor revenue bonds
Debt payable from taxes
Less debt service monies available to pay
principal and interest
Net bonded debt applicable to debt limit
Legal debt margin
Source: Dakota County Auditor and Treasurer's Office.
Legal
Debt Limit
$ 48,292,562
55,355,710
63,764,150
74,851,772
87,232,028
100,696,392
112,851,822
178,539,588
180,739,965
172,098,066
$ 6,705,000
3,590,000
6,450,000
5,715,000
1,430, 000
1,880,000
3,690,000
139
Net Bonded
Debt
Applicable to
Debt Limit
$ 93,270,000
(29,460,000)
63,810,000
(6,527,316)
57,282,684 57,282,684
Net Bonded
Debt Applicable
Legal to Debt Limit as
Debt a Percentage of
Margin Legal Debt Limit
$ 5.582,630 $ 42,709,932 11.56%
6,233,199 49,122,511 11.26%
21,546,324 42,217,826 33.79%
35,144,523 39,707,249 46.95%
39,070,920 48,161,108 44.79%
45,395,089 55,301,303 45.08%
60,848,716 52,003,106 53.92%
58,799,613 119,739,975 32.93%
60,213,098 120,526,867 33.31 %
57,282,684 114,815,382 33.28%
Fiscal Year 2010
$ 5,736,602,200
$ 172,098,066
$ 114,815,382
Note: Minnesota Statutes 475.53, Subdivision 1, No municipality, except a school district or a city of the frist
class, shall incur or be subject to a net debt in excess of two percent of the taxable market value of
taxable property in the municipality for years 2007 and prior; three percent for years beginning in 2008.
CITY OF LAKEVILLE, MINNESOTA
Pledged Revenue Coverage
Last Ten Fiscal Years
Net Revenue
Available
Fiscal Gross (1) Operating For Debt Requirements (2) Times
Year Revenues Expenses Service Principal Interest Total Coverage
2001 $ 6,174,825 $ 2,574,699 $ 3,600,126 $ 825,000 $ 911,268 $ 1,736,268 2.07
2002 6,293,312 2,651,111 3,642,201 865,000 866,592 1,731,592 2.10
2003 7,942,245 3,062,937 4,879,308 915,000 978,279 1,893,279 2.58
2004 8,694,671 3,494,556 5,200,115 1,050,000 896,198 1,946,198 2.67
2005 9,048,259 3,587,604 5,460,655 1,095,000 848,550 1,943,550 2.81
2006 8,094,630 4,113,336 3,981,294 1,150,000 920,015 2,070,015 1.92
2007 8,480,973 3,945,627 4,535,346 1,335,000 734,087 2,069,087 2.19
2008 9,360,504 4,092,983 5,267,521 1 ,350,000 747,273 2,097,273 2.51
2009 8,245,969 4,483,869 3,762,100 1,445,000 655,450 2,100,450 1.79
2010 7,108,874 4,747,219 2,361,655 1,535,000 593,913 2,128,913 1.11
Notes:
(1) The primary revenue source for debt service include water system connection charges,
water system user fees, ice arena net operating revenue and contributions from one
organization conducting lawful gambing at approved locations, and liquor fund gross profits.
(2) Revenue bonds include water connection revenue, arena revenue, HRA public facility
lease revenue, and liquor revenue.
140
CITY OF LAKEVILLE, MINNESOTA
Demographic and Economic Statistics
Last Ten Fiscal Years
(1)
Year Population
Percentage
Increase from
Previous Year
2001 44,751 3.76%
2002 46,285 3.43%
2003 47,523 2.67%
2004 49,097 3.31%
2005 51,472 4.84%
2006 52,323 1.65%
2007 53,829 2.88%
2008 54,828 1.86%
2009 55,772 1.72%
2010 55,954 0.33%
Annual percentage
increase average last
ten fiscal years
City of Lakeville
Labor Unempl.
Year Force Rate
2001 25,665 2.0%
2002 26,072 2.8%
2003 28.302 2.5%
2004 27,950 3.1%
2005 28,745 32%
2006 29,677 3.9%
2007 30,492 4.3%
2008 30,471 5.6%
2009 30,727 6.4%
2010 30,782 6.0%
Personal
Income (2)
fin thousands)
Per Capita
Personal
Income
$ 1,671,539 $ 37,352 382
1,770,910 38,261 314
1,882,861 39,620 422
2,021,323 41,170 382
2,174,229 42,241 237
2,287,875 43,726 221
2,456,163 45,629 183
2,541,333 46,351 137
2,474,827 44,374 127
N/A N/A 138
Labor Force and Unemployment Rate (sesonaily adjusted) (2)
Dakota County
Labor Unempl.
Force Rate
222,265 2.8%
226,750 3.8%
230,968 3.6%
229,734 4.2%
231,322 4.0%
230,427 4.1%
232,670 4.6%
229,716 6.1%
231,391 6.9%
230,247 6.6%
Source:
(1) Metropolitan Council as of April 1, (except for 2010 Federal Census, 2009 City estimate).
(2) U.S. Department of Commerce Bureau of Economic Analysis as of December 31, 2010.
(3) City of Lakeville Inspections Department.
N/A - Not available.
141
Building Permits Issued
Family Dwellings (3) Housing units
Single Multiple Total Valuation
155 537
377 691
367 789
524 906
428 665
223 444
195 378
279 416
54' 181
2 140
Rates
State of United
Minnesota States
4.4% 5.4%
4.4% 5.8%
4.5% 5.4%
5.0% 5.4%
4.8% 4.8%
4.9% 4.5%
4.7% 5.1%
6.8% 7.1%
7.4% 10.0%
6.9% 9.4%
$ 108,984,000
126,154,000
149,884,000
160,871,000
131,774,000
101,474,955
72,128,000
71,062,000
0,0'10,000
38,718,000
CITY OF LAKEVILLE, MINNESOTA
Principal Employers
Fiscal Year Ended December 31, 2010 and December 31, 2001
Principal Employer (1)
Independent School District 194
Ryt -Way Industries, Inc.
ConAgra Store Brands
Despatch Industries, Inc.
Imperial Plastics, Inc.
City of Lakeville (2)
Malt- O-Meal
Menasha Corporation
Image Trend
Verified Credentials, Inc.
Jeff Belzer's Chevy - Dodge -KIA
Fusion Culinary Center
Hearth & Home Technologies, Inc.
Rosemount Office Systems
Total principal employers
Ali other employers
Total City of Lakeville civilian labor force (3)
Product/Service
Elementary & secondary schools
Food service contractors
Breakfast cereal products
Industrial furnace & oven mfg.
Plastics material & resin mfg.
City government
Cereal mfg. technology center
Corrugated & solid fiber box mfg.
Software development
Security background services
New & used auto dealership
Frozen food preparation
Fireplaces /metal work
Office furniture (except wood)
Source:
(1) Telephone survey of individual employers, December 2010.
(2) As of December 31, 2010 (full -time equivalent).
(3) U.S. Department of Commerce Bureau of Economic Analysis as of December 31, 2010.
142
2010
Employees Rank Employees Rank %
1,596 1 5.2% 1,120 1 4.4%
750 2 2.4% 367 3 1.4%
515 3 1.7% 625 2 2.4%
300 4 1.0% 200 4 0.8%
285 5 0.9%
201 6 0.7% 159 7 0.6%
200 7 0.6%
194 8 0.6% 200 5 0.8%
141 9 0.5%
106 10 0.3%
4,288
26,494
30,782
13.9%
86.1%
100.0% 25,665
2001
160 6 0.6%
189 8 0.7%
153 9 0.6%
155 10 0.6%
3,328 12.9%
22,337 87,1%
100.0%
CITY OF LAKEVILLE, MINNESOTA
Commercial and Industrial Building Permits Issued
Years 2010 and 2009
BUSINESS
Green Planet Car Wash
Ace Hardware
Lakeville Orthodontics
Kent 46 Office Bldg
BUSINESS
Malt -O -Meal
Con Agra Foods
Minnesota School of Business
Ryt -Way Industries
Argonne Village
NEW BUILDING PERMITS 2010 AND 2009 (in excess of $250,000)
Notes:
(1) Valuation excludes land and personal property.
Source: City of Lakeville Inspections Department.
PRODUCT /SERVICE
Car wash /detail center
Retail hardware store
Medical
Office building
EXPANSION OR REMODEL BUILDING PERMITS 2010 AND 2009 On excess of $250,000)
PRODUCT /SERVICE
Admin. offices/technology center
Store brand/private label food products
Private business school
Food packaging
Multi- tenant retail
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VALUATION (1)
$ 1,400,000
1,100,000
545,000
260,000
VALUATION (1)
$ 2,150,000
1,269,000
688,000
500,000
477,000
CITY OF LAKEVILLE, MINNESOTA
Employees by Function/Program (Full -Time Equivalent)
Last Ten Fiscal Years
Functlon!Propram 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
General government
City administration 2.7 3.0 3.0 3.0 3.0 3.0 3.0 3.0 2.8 2.5
Communications 3.5 4.9 4.9 4.7 4.7 4.7 4.8 4.1 3.9 4.0
City clerk 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 6.0 6.0 6.0 6.0 6.0 5.6 6.6 6.6 6.5 6.4
Information systems 2.0 2.0 2.6 2.6 3.0 3.9 4.0 4.0 3.3 3.0
Human resources 2.0 2.5 2.6 2.6 2.8 2.9 3.0 3.0 2.8 2.8
Planning 4.8 4.5 5.5 5.5 5.5 5.5 5.5 4.5 3.8 3.0
Community and economic development 2.5. 2.5 2.5 2.5 2.5 2.5 2.5 2.5. 2.5 2.5
Protective inspection 11.0 11.0 11.0 12.0 12.0 12.0 12.0 12.4 8.7 8.0
General government buildings 2.6 2.6 2.5 2.0 2.0 2.5 3.1 3.1 3.0 3.0
Total general government 38.1 40.0 41.6 41.9 42.5 43.6 45.5 44.2 38.3 36.2
Public safety
Police officers (sworn) 43.4 43.5 44.3 46.0 48.0 49.5 51.2 52.8 51.0 51.5
Police di 8.0 8.0 8.0 8.4 10.0 10.0 - -
Police administration 12.4 11.9 11.9 12.0 11.4 11.4 12.9 12.4 11.1 10.8
Fire (excluding volunteer firefighters) 3.0 3.0 3.0 3.0 3.5 4.5 4.6 4.6 4.6 4.6
Total public safety 66.8 66,4 67.2 69.4 72.9 75.4 68.7 69.8 66.7 66.9
Public works
Engineering 12.4 12.9 12.9 13.0 13.0 14.0 14.0 12.3 9.3 9.0
Street maintenance 16.5 16.4 17.0 17.0 17.6 18.5 19.8 20.0 19.4 19.0
Total public works 28.9 29.3 29.9 30.0 30.6 32.5 33.8 32.3 28.7 28.0
Parks and recreation
Park maintenance 12.0 12.9 14.0 14.0 14.8 15.0 15.0 15.0 14.5 15.0
Recreation 4.6 4.7 4.7 4.7 4.7 4.7 5.3 5.3 4.9 4.7
Arts center 1.6 2.8 3.0 3.0 3.0 3.0 3.2 3.6 3.7 3.7
Total parks and recreation 18.2 20.4 21.7 21.7 22.5 22.7 23.5 23.9 23.1 23.4
Total governmental activities 152.0 156.1 160.4 163.0 168.5 174.2 171.5 170.2 156.8 154.5
Liquor
Utility
Total business -type activities
Total employees 196.2 195.5 202.6 202.8 208.8 216.6 215.4 214.1 200.5 1982
Source: City of Lakeville Human Resources Department.
29.2 24.4 24.2 24.8 24.8 25.9 26.4 25.9 25.7 25.7
15.0 15.0 18.0 15.0 15.5 16.5 17.5 18.0 18.0 18.0
44.2 39.4 42.2 39.8 40.3 42.4 43.9 43.9 43.7 43.7
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CITY OF LAKEVILLE, MINNESOTA
Operating Indicators by Function
Last Ten Fiscal Years
Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
General government
Number of registered voters N/A 23,700 N/A 26,834 N/A 30,072 N/A 31,024 N/A 32,617
Number of final plats approved 20 28 26 26 34 21 18 10 8 10
Number of building permits issued 2,435 2,435 2,528 2,623 2,179 3,970 3,487 1,878 1,428 1,421
Valuation of building permits
issued (in millions) $ 151 $ 163 $ 250 $ 230 $ 187 $ 165 $ 126 $ 111 $ 62 $ 49
Public safety
Crimes against person reported 241 235 215 201 194 141 155 158 151 151
Crimes against property reported 1,810 1,655 1,755 1,198 1,376 1,165 1,477 1,424 1,245 1,259
Traffic citations issued 2,827 3,709 3,871 4,404 5,020 4,229 6,086 6,985 6,487 5,441
Number of volunteer firefighters 70 84 77 75 88 80 80 90 78 76
Number of annual fire calls 710 782 762 852 1,048 1,078 1,149 1,230 964 830
Public works
City street miles added
9.8 5 . 1 9.6 5.8 9.8 3.5 2.1
Notes:
(1) Sewage is treated by the Metropolitan Council Environmental Services.
N/A Indicates information is not available for this period at the printing of this report.
Source: Various City of Lakeville Departments.
145
A v
/1 6
V .J
2.3
Parks and recreation
Park acres mowed N/A N/A 434 442 453 465 465 171 471 471
Park facility reservations taken N/A N/A 379 363 312 400 432 479 559 661
Program activity registrations taken N/A N/A 5,146 6,627 5,396 6,749 6,836 7,994 8,201 8,369
Liquor
Annual sales (in millions) $ 8.9 $ 9.5 $ 9.9 $ 10.5 $11.5 $ 12,1 $13.0 $ 14.4 $ 14.6 $ 14.7
Utility (in millions of gallons)
Water (average daily consumption) 5.5 4.7 6.0 5.7 5.6 6.0 6.5 6.3 6.1 4.8
Sanitary sewer (1) 3.8 4.0 4.3 4.2 4.1 3.9 3.9 4.0 3.3 3.3
(average daily treatment)
CITY OF LAKEVILLE, MINNESOTA
Capital Assets Statistics by Function
Last Ten Fiscal Year
Function (1) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Public safety
Police stations 1 1 1 1 1 1 1 1 1 1
Fire stations 3 4 4 4 4 4 4 4 4 4
Public works
City streets (miles) 220.3 226.4 236.0 241.8 251.6 255.1 257.2 258.2 258.7 261.0
Parks and recreation
Acres of parks, conservation areas,
and greenways N/A N/A 1,306 1,314 1,325 1,610 1,610 1,623 1,636 1,663
Parks NIA N/A 52 53 53 53 55 56 59 59
Conservation areas N/A N/A 18 18 18 18 18 18 18 18
Trails and sidewalks - paved (miles) N/A N/A 77 79 83 86 88 91' 91 91
Ice rinks - outdoor (fully boarded) N/A N/A 10 11 11 12 12 12 12 12
Ice rinks - indoor 2 2 2 2 2 2 3 3 3 3
Fields (softball, soccer, baseball,
football, Lacrosse) N/A N/A 120 122 125 125 135 136 136 136
Courts (basketball, volleyball, tennis) NIA NIA 23 26 27 27 36 39 39 39
Playgrounds N/A NIA 33 33 36 38 38 39 39 40
Swimming beaches 3 3 3 3 3 3 3 3 3 3
Liquor
Number of on -sale stores owned 2 2 2 2 2 2 2 2 2 2
Number of on -sale stores leased 1 1 1 1 1 1 1 1 1 1
Utility
Water
Water mains (miles) 222 232 247 270 290 297 304 310 311 311
Fire hydrants 2,416 2,481 2,634 2,840 3,031 3,128 3,313 3,374 3,386 3,386
Wells 12 12 13 14 15 15 16 16 17 17
Sanitary sewer
Sanitary sewer mains (miles) 194 199 208 221 230 238 253 255 256 259
Sanitary sewer lift stations 20 20 21 21 21 20 20 20 20 19
Notes:
(1) Indicators for general government functions are not available.
N/A Indicates information is not available for this period at the printing of this report.
Source: Various City of Lakeville Departments.
146