HomeMy WebLinkAbout06A 2016 Comprehensive Annual Financial Report City of Cottage Grove
Communications Letter
December 31, 2016
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City of Cottage Grove
Table of Corrtents
Report on Matters Identified as a Result of
the Audit of the Financial Statements 1
Required Communication 3
Financial Artalysis 7
Emerging Issues 25
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RepoM on Matters Identified as a Result of
the Audit of the Financial Statements
Honorable Mayor and Members
of the City Council and Martagement
City of Cottage Grove
Cottage Grove, Minnesota
In planr�ing and performing our audit of the firtancial statements of the govemmental
activities, business-Type activities, the discretely presented component urut, each major fund,
and the aggregate remairung fund information of the City of Cottage Grove, Minnesota, as
of and for the yeu ended December 31, 2016, in accordance with auditing standuds
generally accepted in the United States of America, we considered the City's interrtal conhol
over firtancial reporting (intemal conhol) as a basis for designing audit procedures that ue
appropriate in the circumstances for the purpose of expressing our opiruon on the firtancial
statements,but not for the purpose of expressing an opinion on the effectiveness of the
City's intemal conhol. Accordingly, we do not express an opiruon on the effectiveness of the
City's intemal conhol.
Our consideration of intental conhol was for the limited purpose described in the preceding
puagraph and was not designed to identify all deficiencies in interrtal conhol trtat might be
material weaknesses or sigruficant deficiencies and, therefore,material wealmesses or
sigruficant deficiencies may exist that were not identified. In addition, because of inherent
limitations in interrtal conhol, including the possibility of martagement override of conhols,
misstatements due to error, or fraud may occur and not be detected by such conhols.
A deficiency in intental conhol exists when the design or operation of a conhol does not
allow management or employees,in the normal course of performing their assigned
functions,to prevent, or detect and correct, misstatements on a timely basis. A material
weakness is a deficiency, or a combirtation of deficiencies in interrtal conhol, such trtat there
is a reasortable possibility that a material misstatement of the City's firtancial statements will
not be prevented, or detected and corrected, on a timely basis. We did not identify any
deficiencies in intemal conhol trtat we consider to be material wealmesses.
A sigruficant deficiency is a deficiency, or a combirtation of deficiencies,in interrtal conhol
that is less severe than a material weakness, yet important enough to merit attention by those
chuged with goverrtance.
The accompanying memorandum also includes firtancial analysis provided as a basis for
discussion. The matters discussed herein were considered by us during our audit and they do
not modify the opiruon expressed in our Independent Auditor's Report dated June 2, 2017,
on such statements.
1
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TMs commurucation is intended solely for the information and use of the City Council and
martagement, federal and state oversight agencies and others within the City and is not
intended to be, and should not be, used by anyone other trtan these specified parties.
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Minneapolis, Minnesota
June 2, 2017
2
City of Cottage Grove
Required Communication
We have audited the financial statements of the govemmental activities, business-Type activities, the
discretely presented component unit, each major fund, and the aggregate remairting fund information of
the City as of and for the year ended December 31, 2016. Professiortal standards require that we provide
you with the following information related to our audit.
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN
THE UNITED STATES OF AMERICA AND GOVERN�YIENTAUDITING STANDARDS
As stated in our engagement letter, our responsibility, as described by professional standuds, is to
express opinions about whether the financial statements prepued by management with your oversigM
ue fairly presented, in all material respects, in conformity with accounting principles generally accepted
in the Uruted States of America. Our audit of the financial statemenTs does not relieve you or
management of your responsibilities.
As part of our audit, we considered the intemal conhol of the City. Such considerations were solely for
the purpose of determining our audit procedures and not to provide any assurance conceming interrtal
conhol.
As part of obtairung reasonable assurance about whether the financial statements ue free of material
misstatement, we performed tests of the City's compliance with certain provisions of laws,regulations,
conhacts, and giant agreements. However, the objective of our tesTs was not to provide an opinion on
compliance with such provisions.
Generally accepted accounting principles provide for certain required supplementuy information(RSn
to supplement the basic financial statements. Our responsibility with respect to the RSI,wMch
supplement(s)the basic audit financial statements, is to apply certain limited procedures in accordance
with generally accepted auditing standuds. However,the RSI was not audited and, because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
we do not express an opiruon or provide any assurance on the RSI.
Our responsibility for the supplementuy information accompanying the firtancial statements, as
described by professional standuds, is to evaluate the presentation of the supplementuy information in
relation to the firtancial statements as a whole and to report on whether the supplementary information is
fairly stated,in all material respects, in relation to the firtancial statements taken as a whole.
PLANNED SCOPE AND TIMING OF THE AUDIT
An audit includes examirung, on a test basis, evidence supporting the amounts and disclosures in the
firtancial statements; therefore, our audit involved judgment about the number of hansactions to be
examined and the ueas to be tested.
Our audit included obtairung an understanding of the City and its environment, including interrtal
conhol, sufficient to assess the risks of material misstatement of the financial statements and to design
the nature, timing and extent of fiuther audit procedures. Material misstatements may result from
(1) errors, (2) fraudulent financial reporting (3)misappropriation of assets, or(4) violations of laws or
govemmental regulations that ue attdbutable to the City or to acTs by management or employees acting
on behalf of the City.
3
City of Cottage Grove
Required Communication
QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES
Martagement is responsible for the selection and use of appropriate accounting policies. The sigruficant
accounting policies used by the City ue described in the notes to financial statements. No new
accounting policies were adopted and the application of existing policies was not cktanged during the
yeu ended December 31, 2016. We noted no hansactions entered into by the City during the yeu for
wMch there is a lack of authoritative guidance or consensus. All significant hansactions ktave been
recognized in the proper period.
Accounting estimates are an integial put of the financial statements prepued by management and ue
based on managemenYs knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates ue puticululy sensitive because of their sigruficance to the
firtancial statements and because of the possibility that future events affecting them may differ
sigruficanTly from those expected. The most sensitive estimates affecting the firtancial statements were:
Depreciation—The City is currenTly depreciating its capital assets over their estimated useful lives,
as determined by management,using the shaigM-line method.
Net Other Post-Employment Benefits (OPEB) Obligation—TMs liability is based on an actuarial
study using estimates of future obligations of the City for post employment benefits.
EMS Collections—The allowance for doubtfiil accounts for the City's EMS Fund is based on past
collections Mstory.
Net Pension Liability, Deferred Outflows of Resources Relating to Pension Activity and Deferred
Inflows of Resources relating to Pension Activity—These balances are based on an allocation by the
pension plans using estimates based on conhibutions.
We evaluated the key factors and assumptions used to develop the accounting estimates in determining
that they ue reasortable in relation to the financial sTatements taken as a whole
The disclosures in the financial statements ue neuhal, consistent, and cleu.
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no sigruficant difficulties in dealing with management in performing and completing
our audit.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standuds require us to accumulate all known and likely misstatements identified during the
audit, other than those trtat ue clearly hivial, and commurucate them to the appropriate level of
management. We identified no uncorrected misstatements of the financial statements.
4
City of Cottage Grove
Required Communication
CORRECTED AND UNCORRECTED MISSTATEMENTS (CONTINUED)
In additioq none of the misstatements detected as a result of audit procedures and corrected by
management were material, either individually or in the aggiegate, to the financial statements taken as a
whole.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this letter, a disagreement with martagement is a firtancial accounting reporting or
auditing matter, whether or not resolved to our satisfaction, trtat could be sigruficant to the firtancial
statements or the auditor's report. We ue pleased to report that no such disagieements uose during the
course of our audit.
MANAGEMENT REPRESENTATIONS
We requested certain representations from management wMch were provided to us in the martagement
representation letter.
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases,management may decide to consult with other accountants about auditing and accounting
matters, similu to obtaining a "second opinion" on certain situations. If a consultation involves
application of an accounting principle to the City's financial statements or a determirtation of the Type of
auditor's opinion that may be expressed on those statements, our professiortal standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge,there were no such consultations with other accountants.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards,with martagement each yeu prior to retention as the City's auditors. However, these
discussions occurred in the normal course of our professional relationsMp and our responses were not a
condition to our retention.
OTHER MATTERS
We applied certain limited procedures to the RSI that supplements the basic financial statements. Our
procedures consisted of inquiries of management reguding the methods of preparing the information
and comparing the information for consistency with martagemenYs responses to our inquiries, the basic
firtancial statements, and other knowledge we obtained during our audit of the basic firtancial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
5
City of Cottage Grove
Required Communication
OTHER MATTERS (CONTINUED)
With respect to the supplementary information accompanying the financial statements, we made certain
inquiries of martagement and evaluated the form, content and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in United States
of America, the method of preparing it has not changed from the prior period, and the information is
appropriate and complete in relation to our audit of the financial statements. We compued and
reconciled the supplementary information to the underlying accounting records used to prepare the
firtancial statements or to the firtancial statements themselves.
6
City of Cottage Grove
Financial Analysis
The following pages provide grapMc representation of select data pertairung to the financial position and
operations of the City for the past five yeus. Our analysis of each graph is presented to provide a basis
for discussion of past performance and how implementing certain changes may enktance future
performance. We suggest you view each graph and document if our analysis is consistent with yours. A
subsequent discussion of ttus information should be useful for planr�ing purposes.
GENERAL FUND
For the yeu ended December 31, 2016,revenues for the City's General Fund totaled$16,017,198. TMs
represents an increase of$738,95Q or 4.8%, from 2015. General Fund exPenditures totaled$15,302,901
in 2016, wMch is an increase of$1,054,712, or 7.4%, from 2015. Revenue and expenditure activity,
combined with hansfers resulted in an increase in fund balance of$187,410 in 2016.
The ending General Fund balance of$1 Q440,847 is fiuther broken down into spending categories;
$11,222 of the fund balance has already been spent on prepaid items wMle $1,393,200 is assigned for
various purposes including $828,250 for compensated absences and$520,000 to balance the 2017
budget TMs leaves $9,036,425 available for spencling on any purpose, wMch is considered unassigned
fund balance. The City's policy is to have an unassigned fund balance range of no less than 55% of the
subsequent yeu's budgeted expenditures. The unassigned fund balance of$9,036,425 at
December 31, 2016,represents 55.7% of 2016 budgeted expenditures and hansfers out of$16,215,125.
General Fund Revenues, Expenditures, and Fund Balance
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2012 2013 2014 2015 2016
❑TotalRevev�ee $13,�30,401 $13,800,926 $14,028,663 $15TJ8248 $16,01�,198
•TOtelF�pevd�N[eB S2,�S6,S2S S3,SO9,422 53,899,�04 54,248,589 SS,302yOS
oFLvdBalavice 9,150,532 9T31y66 9,512,141 10,253,43� 10,440,84�
7
City of Cottage Grove
Financial Analysis
GENERAL FUND REVENUES
Trends for each of the City's major revenue classifications over the past five yeus ue grapMcally
porhayed in the bu chart below.
As stated eulier, General Fhnd revenues increased$738,95Q or 4.8%, from 2015. The most significant
increase was in property taxes and special assessments, wMch increased$485,447 due to an increase in
the General Fund's shue of the levy of approximately$669,000 plus increased collections of delinquent
amounts. Intergovernmental revenue also increased significanfly,increasing$177,313, or 21.0% due to
increased revenue from a conservation grant. Cktarges for services increased$115,098, or 20.6%, from
2015 primarily due to engineering services due to having a significant amount of development in 2016.
Fines, forfeitures, and other revenue decreased$57,146, or 11.9%, from 2015 with fines and investment
euning both down from the prior yeu. License and permits revenue stayed consistent with 2015,
increasing only approximately$18,000.
General Fund Revenues
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2012 2013 2014 2015 2016
oRopertyTarzesae�dspeoalwssessm�6 $II,la2,611 $Iqa66,"]90 $11,3a4,3a2 $12,o93,a63 $12,n9,310
•Licevsesar�dPumi6 831,68"] 86q954 904,400 1,30$442 1,32$680
DIv[agovemmevtal 633,631 "]0$091 95$912 842658 1,019,9"]I
OCharges[or5ervicu 83q159 1,114,"]49 431,332 551,45] 612555
•Fivesae�dFodei[wesar�dOther 252,303 250,342 343,63] 4"]$828 421,682
8
City of Cottage Grove
Financial Analysis
GENERAL FUND REVENUES (CONTINUED)
The cktart below shows an allocation of General Fund revenues by source as a percentage of total
General Fund revenues. The City continues to rely on property tax revenue as the majority of its General
Fund income. Sources of revenue ktave been consistent over each of the past five yeus.
GeneralFund Revenuesby Source
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60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016
❑A'OQCII)'TZ%CB20A$QCCI2IABBCBBOCDIH SS� 79� �S� 79� 79�
■LICCDBCB 2IIA PC[INIH 6� � � 9� $�
olnte�govemmevtal 5� 5� � 6� �
OChargeePo�Servicee 6� 8� 3� 4� 4�
�FIDCB2IIAFO[PCIN[CB2IIAOHIC[ 2� 2� 2� 3� 3�
9
City of Cottage Grove
Financial Analysis
GENERAL FUND EXPENDITURES
As discussed previously, total General Fund expenditures increased$1,054,712, or 7.4%, from 2015.
Culture and recreation and public safety expenditures reported the most significant increases from 2015
to 2015, increasing $256,615 and$562,821,respectively. The increase in culture and recreation
expenditures was primarily due to salaries and fees for services with more tree maintenance in 2016.
The increase in public safety expenditures was related to severance for five retiring police officers.
General government, public works, and community development expenditures were fairly consistent by
program from 2015 to 2016. General govemment increase was mosTly due to personnel increases;both
salaries and benefits. Public works expenditures increased sligMly due to an increase in wage rates.
General Fund Expenditures
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2012 1A13 2014 2015 2016
oaemvalawemmevt $2,581,535 $1,96�,112 $1y81,162 $2,122,549 $2,180,�19
•co��ryne��opmeoe svz,�v viv,izc i,oss,s3� i,iv,�co
•Public safery 6�134,164 6�93,020 6,s35,�93 6,923,009 �,4ss,s3o
oPublic Wocks 2�1.85y62 2�19,519 2�86�1.18 2,309,�26 2,42�,609
oCdNreandRecveatiov 1,614,864 1y3�,012 1,�%1,405 1,834�68 2,090y83
10
City of Cottage Grove
Financial Analysis
GENERAL FUND EXPENDITURES (CONTINUED)
The chut below shows an allocation of General Fund expenditures by function as a percentage of total
General Fund expenditures. Community development expenditures have been broken out from general
govemment expenditures since 2013. Besides this classification cktange, expenditures by function
remained consistent across functions.
General Fund Expenditures by Function
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35%
30%
25%
20%
15%
10%
5%
0%
2012 2013 2014 2015 2016
oQevecalaovemmevt 20� 15� 14� 15� 14�
•CommwiryDevelopmevt 0� �� �� � �
oPublicSafery 49� 4� 49� 49� 49�
oPublic Wocke 18� 1� 1� 16� 16�
•C�INreandRecceatiov 13� 14� 13� 13� 14�
11
City of Cottage Grove
Financial Analysis
GENERAL FUND
As noted in the table below,total General Fund revenues exceeded the final budgeted amount by
$424,088, or 2.7%. The most significant variances were in the licenses and permits,intergovemmental,
and cktarges for services categories. Licenses and permits were over budget due to conservative
budgeting for building permits related revenue. Intergovernmental revenues were over budget as the
City received Mgher fire and police state aid trtan budgeted as well as other minor unbudgeted activity.
Chuges for services were over budget due to the City budgeting conservatively.
Total General Fund expenditures were under budget by$139,849. Public works expenditures were
$215,376 under budget due to savings in snow removal cosTs with a mild winter.
Overall, the City budgeted for a$96,305 decrease in fund balance, wMle actual fund balance increased
$187,410.
FinalBudget AcWal Variance
Revenues
Generalpmperiytaxes $ 12,61Q100 $ 12,573,607 $ (36,493)
8puial assessments 19,500 5,703 (13,797)
Licensesandpertnits 1,123,575 1,323,680 20Q105
Intergovemmental 937,250 1,019,971 82,721
Charges for services 516,600 672,555 155,955
Fines and forfeitures 175,000 196,360 21,360
���a��c��gs bq000 si,9so <s,ozo)
Other 151,085 173,342 22,257
Totalrevenues 15,593,110 16,017,198 424,088
ExpendiWres
Cmrent
Genaalgovanment 2,145,310 2,18Q719 35,409
Communirydevelopment 1,093,580 1,117,760 24,180
Public safety 7,249,700 7,301,048 51,348
Publicworks 2,622,675 2,407,299 (215,37�
c�im�ea�a«��eo� i,9a9,9ss i,�az,i9i <�,��a�
Capital outlay
Public safery 182,500 184,782 2,282
Publicworks 14,000 2Q310 6,310
CulWreandrureation 185,000 14$792 (36,208)
Total expenditures 15,442,750 15,302,901 (139,849)
Otha financing sources(uses)
Transfas in 525,710 525,713 3
Transfas out (772,375) (1,052,600) (280,225)
Toe�i om�s�����g so�«� <�ses� �zae,bes� �sze,ss» �zsqzzz�
N�e�����se<a���se���rv�anai��e $ (9a,sos� $ is�,aio $ zss,�is
12
City of Cottage Grove
Financial Analysis
STREET LIGHT FUND
The City's Sheet Light Fund ktas reported operating losses with depreciation and without each of the past
five yeus.
The firtancial health of the fund as measured by unreshicted net position ktas declined$13 million or
53%.
We recommend the City monitor the fees chuged by sheet light services to ensure user fees are
sufficient to cover current and future obligations.
Street Light Fund
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$600,000
$400,000
$200,000
$-
$(200,000)
O O O O
$(400,000)
2012 2013 2014 2015 2016
D Operativg 2rvev�u •Operativg Eapevses
o0perativglvcome(Loss)witho�tDepvenanov o0perativgLosswitliDeprwiaziov
13
City of Cottage Grove
Financial Analysis
STREET LIGHT FUND (CONTINUED)
Street Light Fund Unrestricted Net Position
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8-
2012 2013 2014 2015 2016
14
City of Cottage Grove
Financial Analysis
EMSFUND
The City's EMS Fund reported income in 2016 after an operating loss in 2015. Revenues increased by
$342,463 or 24% from a 3%rate increase and Mgher call volume. ExPenditures increased by$182,551
or 122%mosfly from personnel costs.
The unreshicted net position of the EMS Fund is shown on the following page. TMs represents the
portion of net position trtat is available for spending.
EMS Fund
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$600,000
$400,000
$200,000
$-
$(200,000) ��
2012 2013 2014 2015 2016
OCharges[orServices •Operativg Eapevses
DOperativglvcomewitlio�tDepvenatiov DOperativglvcome(Loss)witliDeprwiaziov
15
City of Cottage Grove
Financial Analysis
EMS FUND (CONTINUED)
EMS Fund Unrestricted Net Position
ai,aoq000
ai,zoq000
ai,00q000
asoq000
$600,000
$400,000
$200,000
$-
2012 2013 2014 2015 2016
16
City of Cottage Grove
Financial Analysis
WATER OPERATING FUND
The City's Water Operating Fund operating revenue and exPenses were consistent from 2015 to 2016,
decreasing $14,208, or 0.8% and$49,602 or 2%respectively. Expenses decreased due to meter
replacemenTs in the prior yeu.
The unreshicted net position of the Water Operating Fund is shown on the following page. TMs
represents the portion of net position that is available for spending.
Water Operating Fund
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az,isq000
aiyoq000
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ai,isq000
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$650,000
$400,000
$150,000
$(100,000)
$(350,000)
$(600,000)
2012 2013 2014 2015 2016
DOperativg 2evev�e •Operativg Eapevses
DOperativglvcomewitlio�tDepvenatiov DOperativglvcome(Loss)witliDepredatiov
17
City of Cottage Grove
Financial Analysis
WATER OPERATING FUND (CONTINUED)
Water Operating Fund Unrestricted Net Position
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$],434,3cv
$],081,�3� $6y43,559
$J,000,000
$5,8�2,932
$6,000,000 $5,504,842
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2012 2013 2014 2015 2016
•LiquidResourcesAvailableforSpending oAmountRepresentinglnterfundLoan
I8
City of Cottage Grove
Financial Analysis
SEWER OPERATING FUND
The City's Sewer Operating Fund cktarges for services from 2015 to 2016 increased$33,342, or 1.5%,
and operating expenses increased$272,948, or 11.1%. The increase in operating expenses is mosTly due
to Met Council rate increases and additional volume.
The unreshicted net position of the Sewer Operating Fund is shown on the following page. TMs
represents the portion of net position that is available for spending.
Sewer Operating Fund
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8-
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2012 2013 2014 2015 2016
OChargu forServices �Operativg Eapevses DOperativg Ivcomewitho�tDepve�iatiov DOperativg Loss with Depve�iatiov
19
City of Cottage Grove
Financial Analysis
SEWER OPERATING FUND (CONTINUED)
Sewer Operating Fund Unrestricted Net Position
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ac,osa,c�s ac,iov,i�a ac,ovs,�av ac,izi,s�i ac,ovs,oss
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2012 2013 2014 2015 2016
oLiquidResourcesAvailableforSpending oAmowtRepresentingInterfundLoan
20
City of Cottage Grove
Financial Analysis
GOVERNMENTAL ACTIVITIES
The tables below and on the following page illushate the City's various sources of revenue and
expenditures per capita over a three yeu period in compuison to 2015 data for Minnesota cities ranked
by vuious sizes.
Govu'nm�Gl HLntls Reveuue Pec Capiq
with9Gt WitleAvu'agesbyPopula[ionClass
SfetsW ide* Ciry ofCottege 6rove
Yeer Duemba31,2015 2014 2015 2016**
Pop�letiov 2,500.1Q000 1Q000.2Q000 2Q000-0OQ000 35,619 35,814 35,596
Prcpertyfezes $ 443 $ 414 $ 443 $ 359 $ 3"]9 $ 392
Tez incranmfs ffi 33 3"] 20 20 22
Frenchirefeesendotherfezes 33 42 39 16 16 16
Spuiel essusmenfs 59 52 59 3"] 42 56
Licensesendpaxnifs 31 31 43 25 36 3"]
Ivtergove.�xvnenfelreven�u 285 3P2 156 110 6] 158
Chargesforservicu 110 85 94 163 13] 122
Other 69 6L 58 S] 5] 104
TOYzlreven�e $ 1,056 $ 1,041 $ 929 $ "]8"] $ "]54 $ 9G']
* State-wide data obtained from the Office of the State Auditor's 2015 Minnesota City FinancesReport.
** Populationis estimate obtained from City's planr�ing deputment.
With a luge draw from the State MSA pool for road conshuction and maintertance,intergovemmental
revenue drove most of the increase in per capita revenue in 2016.
21
City of Cottage Grove
Financial Analysis
GOVERNMENTAL ACTIVITIES (CONTINUED)
Govu'nm�Gl HLntls Expeutli[uces Pec Cap'Pz
with9Gt WitleAvu'agesbyPopula[ionClass
SfetsW ide* Ciry ofCottege 6rove
Yeer Duemba31,2015 2014 2015 2016**
Pop�letiov 2,500.1Q000 1Q000.2Q000 2Q000-0OQ000 35,619 35,814 35,596
Cmrent
6merelgovemmmt $ 134 $ 109 $ 89 $ S] $ 60 $ 88
Emvomic end comm�viC�
development 40 4"] 69 52 81 94
P�blicsefety 255 �4 ffi1 182 189 209
P�blicworks 119 11"] 99 121 121 ll6
C�IWreendrecreetion 88 108 94 11"] 116 125
Other PA 9 89
TOYzlw�rent $ 660 $ 646 $ "]Ot $ 529 $ 56] $ 632
Cepifel o�tley
evd wvstruction $ 3"]2 $ 389 $ 286 $ 140 $ 196 $ 483
Debtservice
Privcipel $ 181 $ 1"]8 $ ll"] $ 85 $ 54 $ 194
IvteruLevdEscel 51 40 33 31 32 29
Totaldebtservice $ 232 $ 218 $ 150 $ 116 $ 86 $ P23
* State-wide data obtained from the Office of the State Auditor's 2015 Mirmesota City FinancesReport.
** Populationis estimate obtained from the City's planning department.
Planned capital activity in the MSA Construction and Pavement Management Funds accounted for a
significant increase in per capita capital spending in 2016. Refunding of debt inflated the per capita debt
service number. Increases in General Govemment and Public Safety were the main factors in current
expenditure increases. The per capita current spending is still well below compuable cities (based on
population) despite the 2016 increase.
22
City of Cottage Grove
Financial Analysis
TAX LEVY, CAPACITY,AND RATES
The chut below depicts average tax rates for the City, along with the average tax rates for the seven
county meho uea and all Minnesota cities for 2015 and 2016. Overall, the City has generally
maintained a lower overall average tax rate when compued to state and meho averages.
au c�ees se��cowry ary of
State-Wide MetroArea CottageGove
2015 1A16 1A15 2016 1A15 1A16
Averagelaxra[e
C1ly 4690% 4652% 433"1% 4295% 4141% 4296%
Cowty 44"Il% 4413% 4289% 4234% 3019% 3056%
School 2"1_09% DSO% 2832% 2862% 3543% 3654%
Spedalta�vg 690% 690% 8"16^/0 8"13% 48"1% 532%
Total 11560% 12505% 11334% 122_64% 11190% 11538%
Amounts obtained from the League of Minnesota Cities Property Tas Data Table reports.
23
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24
City of Cottage Grove
Emerging Issues
Executive Summary
The following is an executive summuy of financial and business related updates to assist you in staying
current on emerging issues in accounting and finance. TMs summuy will give you a preview of the new
standards trtat ktave been recenTly issued and wktat is on the horizon for the neu future. The most recent
and significant updates include:
• Accounting Standard Update–GASB StatementNo. 74- Financial RepoMing for
Postemployment Benefit Plans Other Than Pension Plans–GASB ktas issued GASB
statement 74 relating to postemployment benefit plans other tttan pension plans adnunistered
through husts that meet certain criteria and includes requirements for OPEB plans not
administered through trusts. The new statement improves financial reporting primarily through
enhanced note disclosures and schedules of required supplementuy information.
• Accounting Standard Update–GASB Statemelrt No. 75- Accounting and Financial
RepoMing for Postemployment Benefits Other Than Pensions�ASB ktas issued GASB
statement 75 relating to accounting and financial reporting for postemployment benefits other
than pensions. The new statement requires govemments in all Types of OPEB plans to present
more extensive note disclosures and required supplementary information(RSI) about their OPEB
liabilities.
The following ue extensive summaries of each of the current updates. As your continued business
partner, we ue committed to keeping you informed of new and emerging issues. We ue happy to
discuss these issues with you fiuther and their applicability to your City.
ACCOUNTING STANDARD UPDATE–GASB STATEMENT NO. 74- FlNANCIAL
REPORTING FOR POST EMPLOYMENT BENEFIT PLANS OTHER THANPENSION
PLANS
The objective of ttus Statement is to improve the usefulness of information about postemployment
benefits other than pensions (other postemployment benefits or OPEB)included in the general purpose
extemal financial reporTs of state and local governmental OPEB plans for making decisions and
assessing accountability.
TMs Statement replaces Statements No. 43, Firtancial Reporting for Postemployment Benefit Planc
Other Tktan Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and
Agent Multiple-Employer Plans. It also includes requirements for defined conhibution OPEB plans that
replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined
Benefit Pension Plans and Note Disclosures for Defined Contdbution Plans, as amended, Statement 43,
and Statement No. SQ Pension Disclosures.
The scope of this Statement includes OPEB plans—defined benefit and defined conhibution—
adimrustered through trusts that meet the following criteria:
. Conhibutions from employers and nonemployer contdbuting entities to the OPEB plan and
eanungs on those conhibutions ue irrevocable.
25
City of Cottage Grove
Emerging Issues
ACCOUNTING STANDARD UPDATE—GASB STATEMENT NO. 74- FlNANCIAL
REPORTING FOR POST EMPLOYMENT BENEFIT PLANS OTHER THANPENSION
PLANS(CONTINUED)
. OPEB plan assets ue dedicated to providing OPEB to plan members in accordance with the
benefit terms.
. OPEB plan assets ue legally protected from the creditors of employers,nonemployer
conhibuting entities, and the OPEB plan adminishator. If the plan is a defined benefit OPEB
plan,plan assets also ue legally protected from creditors of the plan members.
TMs Statement also includes requirements to address financial reporting for assets accumulated for
purposes of providing defined benefit OPEB through OPEB plans that ue not admirustered through
husts that meet the specified criteria.
Altemative measurement method
TMs Statement includes an option for the use of a specified altemative measurement method in place of
an actuarial valuation for purposes of determirung the total OPEB liability for benefits provided through
OPEB plans in wMch there ue fewer than 100 plan members (active and inactive).
Effec[ive Date and Transition
TMs Statement is effective for financial statements for fiscal yeus beginning after June 15, 2016. Eulier
application is encouraged.
How the Changes in this Statement will Improve Financial RepoMing
The requirements of ttus Statement will improve firtancial reporting primuily through enktanced note
disclosures and schedules of required supplementary information trtat will be presented by OPEB planc
that ue administered through trusts that meet the specified criteria. The new information will enktance
the decision-usefulness of the financial reports of those OPEB plans, their value for assessing
accountability, and their hanspuency by providing information about measures of net OPEB liabilities
and explanations of how and why those liabilities cktanged from yeu to yeu. The net OPEB liability
informatioq including ratios, will offer an up-to-date indication of the extent to wMch the total OPEB
liability is covered by the fiduciuy net position of the OPEB plan. The compuability of the reported
information for similu Types of OPEB plans will be improved by the changes related to the attdbution
method used to determine the total OPEB liability. The conhibution schedule will provide measures to
evaluate decisions related to the assessment of conhibution rates in comparison with actuarially
determined rates, if such rates ue determined. In addition,new information about rates of return on
OPEB plan investments will inform financial report users about the effects of muket conditions on the
OPEB plan's assets over time and provide information for users to assess the relative success of the
OPEB plan's investment shategy and the relative contdbution that investment eunings provide to the
OPEB plan's ability to pay benefits to plan members when they come due.
26
City of Cottage Grove
Emerging Issues
ACC OUNTING STANDARD UPDATE—GASB STATEMENT NO. 75-ACCOUNTINGAND
FINANCIAL REPORTING FOR POSTEMPLOYMENT BENEFITS OTHER THANPENSIONS
The primary objective of this Statement is to improve accounting and firtancial reporting by state and
local govemments for postemployment benefits other than pensions (other postemployment benefits or
OPEB). It also improves information provided by state and local govemmental employers about
firtancial support for OPEB that is provided by other entities. TMs Statement results from a
comprehensive review of the effectiveness of existing standuds of accounting and firtancial reporting
for all postemployment benefits (pensions and OPEB) with regud to providing decision-useful
information, supporting assessments of accountability and interperiod equity, and creating additiortal
hanspuency.
TMs Statement replaces the requirements of Statements No. 45,Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB
Measurements byAgentEmployers andAgentMultiple-EmployerPlans, for OPEB. StatementNo.
74,FinancialReportingforPostemploymentBenefitPlansOtherThanPensionPlans, establishesnew
accounting and firtancial reporting requirements for OPEB plans.
GASB Statement 75 requires govemments to report a liability on the face of the firtancial statements for
the OPEB that they provide:
• Govemments that ue responsible only for OPEB liabilities related to their own employees and
that provide OPEB through a defined benefit OPEB plan administered through a hust that meets
specified criteria will report a net OPEB liability—the difference between the total OPEB
liability and assets accumulated in the hust and restdcted to maldng benefit payments.
• Govemments that participate in a cost-sharing OPEB plan that is adnunistered through a trust
that meets the specified criteria will report a liability equal to their proportionate share of the
collective OPEB liability for all entities puticipating in the cost-sharing plan.
• Govemments that do not provide OPEB through a trust that meets specified criteria will report
the total OPEB liability related to their employees.
GASB Statement 75 carries forwud from Statement 45 the option to use a specified alterrtative
measurement method in place of an actuarial valuation for purposes of determirung the total OPEB
liability for benefits provided through OPEB plans in wMch there ue fewer than 100 plan members
(active and irtactive). TMs option was retained in order to reduce costs for smaller govemments.
27
City of Cottage Grove
Emerging Issues
ACC OUNTING STANDARD UPDATE—GASB STATEMENT NO. 75-ACCOUNTINGAND
FINANCIAL REPORTING FOR POSTEMPLOYMENT BENEFITS OTHER THANPENSIONS
(CONTINUED)
GASB Statement 75 requires govemments in all types of OPEB plans to present more extensive note
disclosures and required supplementuy information(RSn about their OPEB liabilities. Among the new
note disclosures is a description of the effect on the reported OPEB liability of using a discount rate and
a healthcue cost hend rate that ue one percentage point Mgher and one percentage point lower than
assumed by the govemment The new RSI includes a schedule showing the causes of increases and
decreases in the OPEB liability and a schedule compuing a govemmenYs actual OPEB conhibutions to
its conhibution requirements.
Information provided above was obtained from www.gasb.org.
28
Cottage
� Grove
�he�e Pride and PCOSPerity Meet
Comprehensive Annual
Financial Report
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City of Cottage Grove
� : ' Minnesota
YearEnded
December 3i, aoi6
CITY OF COTTAGE GROVE,MINNESOTA
TABLE OF COIVTENTS
Reference PageNumber
I.INTRODUCTORYSECTION
Letter ofTransmittal 3
Certiticate of Achievement for Fxcellence in Financial Reporting 9
Rincipal Ciry Officials 11
Organization Chart 12
II. NTNANCIAL SECTION
IndependentAudiWr's Report 15
ManagemenPs Discussion and Malysis 19
Basic Nfnanual Statwnents:
Gove�nmenGWideFinancial Statements:
Statement ofNet Position Shetement 1 33
StatementofActivities Shetement2 35
Fund Financial Shetements:
Balance Sheet-Gove�nmental Funds Shetement3 36
Statement of Revenues,Expendih�res, and Changes in Fund Balance-
GovemmentalFunds Shetement4 38
Ruonciliation ofthe Statement ofRevenues,Expenditures, and Changes in
FundBalancesofGove�nmenhelFundsWtheStatementofActivities Shetement5 40
StatementofNetPosition-ProprietazyFunds Shetement6 41
Statement of Revenues,Expenses,and Changes in Fund Net Position-
RoprietazyFunds Shetement7 42
Statement of Cash Flows -Roprietazy Funds Shetement 8 43
Notes W Financial Statements 44
Required Supplwnentery Information:
Budgetazy Comparison Schedule-General Fund Shetement9 81
Schedule ofCiry's Proportionate share ofNetPension Liabiliry-GEI2F and PEPFF 87
Schedule of Ciry Contributions -GERF and PEPFF 88
Schedule of Employer and Non-Employer Contributions -Fire Relief 89
Schedule of Changes in Net Pension Liabiliry-Fire Relief 90
Funding Progress Schedule-Other Post Employment Health Care Benefits 91
CITY OF COTTAGE GROVE,MINNESOTA
TABLE OF COIVTENTS
Reference PageNumber
Combining and Individual N7u�d Statements and Schedules:
CombiningBalanceSheet-NonmajorGovemmentalFunds Shetementl0 97
Combining Shetement ofRevenues,Expendih�res and Changes in Fund Balance-
Nonmajor Gove�nmental Funds Shetement 11 98
SubcombiningBalanceSheet-NonmajorSpecialRevenueFunds Shetementl2 100
Subcombining Statement ofRevenues,Expenditures and Changes in
Fund Balance-Nonmajor Special RevenueFunds Shetement 13 102
Subcombining Balance Sheet-Nonmajor Debt Service Funds Shetement 14 105
Subcombining Statement ofRevenues,Expenditures and Changes in
Fund Balance-Nonmajor Debt Service Funds Shetement 15 106
Subcombining Balance Sheet-Nonmajor Capital ProjectFunds Shetement 16 108
Subcombining Statement ofRevenues,Expenditures and Changes in
Fund Balance-Nonmajor Capital ProjectFunds Shetement 17 110
Spuial Revenue Funds:
Schedules ofRevenues,Expenditures and Changes in
Fund Balance-Budget and Actual:
Recycling Shetement 18 112
SW�rn Water Shetement 19 113
ForFeiturelSeizure Shetement 20 114
Ice Arena Shetement 21 115
Golf Cowse Shetement 22 116
Chariheble Gambling Shetement 23 117
Intemal ServiceFunds:
CombiningStatementofNetPosition Shetement7A 120
CombiningStatementofRevenue,FxpensesandChangesinFundNetPosition Shetement25 121
Combining Statement of Cash Flows Shetement 26 122
ComponentUnit
Economic Development Authoriry:
Combining Balance Sheet-All Gove�nmental Fund lypes Shetement 27 17A
Combining Statement of Revenues,Expenditures and Changes
in Fund Balance-All Govemmental Fund 1�pes Shetement 28 125
CITY OF COTTAGE GROVE,MINNESOTA
TABLE OF COIVTENTS
Reference PageNumber
Supplementary NSnanual Information:
Combined Schedule of Bonded Indebtedness Exhibit 1 128
Debt Service Payments W Mah�riry Exhibit 2 130
Defe�red Tax Levies Exhibit3 131
SubcombiningBalanceSheet-PavementManagementDebtServiceSchedule Exhibit4 132
Subcombining Statement ofRevenues,Expenditures, and Changes in Fund Balance-
Pavement Management Debt Service Schedule Exhibit 5 133
SubcombiningBalanceSheet-TaxIncrementConsWctionRevolvingSchedule Exhibit6 134
Subcombining Statement of Revenues,Fxpenditures, and Changes in Fund Balance-
Tax Increment Construction Revolving Schedule Exhibit 7 135
SubcombiningBalanceSheet-TIFDebtServiceRevolvingSchedule Exhibit8 136
Subcombining Statement ofRevenues,Fxpenditures, and Changes in Fund Balanc�
TIF Debt ServiceRevolving Schedule Exhibit9 137
CITY OF COTTAGE GROVE,MINNESOTA
TABLE OF COIVTENTS
Reference PageNumber
III. STATISTICAL SECTION
NetPosition by Component Table 1 141
Changes in Net Position Table 2 142
Fund Balances of Govemmental Funds Table 3 144
Changes in Fund Balances of Gove�nmenhel Funds Table 4 145
Assessed and Estimated Actual Value of Taxable Property Table 5 146
Roperty Tax Rates-Dirut and Overlapping Govemments Table 6 147
Rincipal Property Taxpayers Table7 148
Roperty Tax Levies and Collutions Table 8 149
Ratios of Outshending Debtby lype Table9 150
Ratios of General Bonded Debt Outshending Table 10 151
Direct and Overlapping Govemmental Activities Debt Table 11 152
Legal Debt Margin Infomiation Table 12 153
Demographic and Economic Statistics Table 13 154
Rincipal Employers Table 14 155
Ful4time Equivalent Ciry Gove�nment Fanployees by Function Table 15 156
Operating IndicaWrs by Function/Prograrn Table 16 157
Capital Asset Shetistics by Function/Prograrn Table 17 158
I. INTRODUCTORY SECTION
�
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z
� Cottage
Grove
��+e Ride and P�o�erlty Meet
June 2, 2017
To the Honorable Mayor, Members of the City Council and Citizens of the City of Cottage
Grove:
Minnesota statutes require all cities to submit an annual audited financial statement to the Office
of the State Auditor. Pursuant to that requirement, we hereby issue the Comprehensive Annual
Firtancial Report of the City of Cottage Grove for the yeu ended December 31, 2016.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report,based upon a comprehensive framework of interrtal conhol standuds that
it ktas established for ttus purpose. Because the cost of intemal conhol should not exceed
anticipated benefits,the objective is to provide reasortable,rather trtan absolute assurance that the
financial statements ue free of any material misstatements.
BerganKDV, LTd., independent certified public accountants have issued an unmodified("clean")
opinion on the City of Cottage Grove's financial statements for the yeu ended December 31,2016.
The independent auditors' report is located at the front of the firtancial section of this report.
ManagemenYs discussion and analysis (MD&A) immediately follows the independent auditors'
report and provides a rtarrative inhoduction, overview, and analysis of the basic firtancial
statements. TMs letter of hansmittal is designed to complement the MD&A and should be read in
conjunction with it.
Profile of the City
Cottage Grove was organized as a village on July 13, 1965 and was incorporated as a city on
January 1, 1974. Cottage Grove is a suburban commuruty located on the southem border of
WasMngton County, siateen miles southeast of Downtown St. Paul. The City currenfly occupies
343 square miles of land. The 2010 Census established the City population at 34,589;recent data
estimates 2016 population at 35,939.
Cottage Grove operates as a Statutory Plan A City under Minnesota law. Policy maldng and
legislative authority ue vested in a City Council, consisting of the Mayor and four other members,
elected at luge and on a non-partisan basis. Terms of office ue staggered four yeu terms, with
elections heldin each even-numbered yeu.The City Council is responsible for passing ordinances,
adopting the budget and appointing members of the vuious citizens' advisory boards. In addition,
the Mayor and Council appoint a full-time City Admirushator, who is responsible for overall
supervision of City operations.
CITY OF COITAGE GROVE• 12800 Ra�ine Parkway• Cottage Grove, Minnesota 55016
www.cottage-grove.org • 651-958-2800• Fax 651-458-2897 • Equal Opportunity Employer
The City provides a full range of municipal services. These services include police and fire
protection, ambulance services,puks and puk facilities, a golf course,recreational programming,
an ice arena, sheet construction and maintertance, water, sewer and storm water utilities, planr�ing
and zoning and general adminishative functions.
The Economic Development Authority (EDA) of the City of Cottage Grove is a sepuate legal
entity organized pursuant to Minnesota Statute 469. There ue seven members of the EDA who
ue appointed by the City Council; two appointees ue Council members and the five others ue
appointed from the community. The EDA is included in trus firtancial report as a discretely
presented component unit,due to the EDA's relationsMp of firtancial benefit or burden to the City.
The annual budget serves as the foundation for the City of Cottage Grove's firtancial planr�ing and
conhol. The budget incorporates the City's firtancial policies, firtancial operations, debt
management, reserves and investments. The process by wMch the biennial budget document is
prepued begins with the submission of department appropriation requests in June. The requests,
along with projected revenues and stated City Council shategic goals, provide the star[ing point
for budget development Collaborative meetings ue held with City Staff and workshops ue held
with the City Council to refine the budget document in advance of the submission of the
preliminary tax levy in September each yeu. The prelimirtary levy may be reduced after it is
adopted, but cannot be increased. An information session is held for taxpayers at the first City
Council meeting in December in advance of adoption of the firtal levy and budget The Council
is required to adopt a final budget by no later than December 28�'of each yeu.
Local economy
Cottage Grove is part ofthe Minneapolis/St Paul seven countymehopolitan uea; an economically
diverse environment with an equally diverse labor force. 2016 continued with steady employment
giowth in the region and the unemployment rate at 2.8%, compued to the national rate of 4.7%.
Wage growth and inflation continued at a moderate pace.
The City's tax base is 80% residential and 20% commercial/industdal property. Total ta�.ble
muket value in 2016 was $2.8 billion; a recovery to almost 95% of pre-recessionuy levels.
Moderate growth in value is expected for 2017, from both new conshuction and increases in
property values of existing building stock.
The City's 600 acre business puk is home to 1,150,000 squue feet ofindushial and manufacturing
businesses, including Up North Plastics, Leafline Labs, American Logistics, Renewal by
Andersen, and Werner Electdc. Other major employers in the City include 3M Company,Tuget,
Menud's, Walmart, and Aggregate Indushies. The City's commercial ueas include four
commuruty shopping centers and several restaurants.
In 2016, Gudenworld, a guden product wholesaler, relocated their facilities from St Paul to the
Cottage Grove Business Puk with construction of a 3Q000 sq. ft. wuehouse and 44,000 sq. ft.
greenhouse on nine acres.
a
Conshuction of a 92,800 sq. fr. Hy-Vee giocery store in the City's Gateway North development
began in the second quarter of 2016 and is almost complete at trus writing with an expected
opening in August 2017. TMs redevelopment also includes construction of a 4,500 sq. ft. Motor
Fuel/Converuence Store and the renovation of the former Home Depot proper[y into several retail
tertant spaces wMch will open in the first quarter of 2018. The vibrancy of trus redevelopment has
left retail vacancy in the Gateway dishict at less than 3%.
Long-term financial planning
The City places a Mgh priority on planr�ing for future growth. Staff uses different long range
revenue and expenditure models during the annual prepuation of a biennial budget plan for the
General Fund, Special Revenue and Enterprise Funds. The biennial budget process allows for the
assurance that any change to revenues or expenditures is sustainable in the successive yeu.
Furthermore, Council and staff compile a five yeu Capital Improvement Plan (CIP) wMch
addresses the future building and infrastructure projects necessuy to address the new residential
and commercial property ouTlined in the City's 2030 Comprehensive Plan.
As part of the CIP, each capital project is analyzed to determine if sufficient fimding exists for the
project and the longer term impact of each of the projects on the individual capital fund balances.
For example, during the 2017 to 2021 period over $20 million in total Pavement Management
projects ue anticipated. Pavement Management is not a full road reconstruction but rather a
reclamation or mill and overlay process to extend roadway life. Project funding for Pavement
Management is covered by a 45% / 55% cost split special assessments against benefiting
properties with the balance of the costs covered by general obligation debt to be repaid by annual
tax levies.Annual levies for debt repayment ue balanced so trtat no more than 10%of any property
tax levy is for the repayment of debt.
Relevant Financial Policies
The Cityktas financial policies andplans wMch establishthe principles that guide staff and Council
members to make consistent and informed financial decisions. These policies and plans include:
• Fundbalancepolicy
• Cash and inveshnentmanagementpolicy
• Debtmanagementpolicy
• Capital improvementsplan
• InfrastructureMaintenanceTaskForce (IMTF)policy
It is important for the firtancial stability of the City to maintain reserve funds for unanticipated
expenditures or unforeseen emergencies as well as to provide adequate working capital for current
operations without short term borrowing. The City's fund balance policy identifies trtat the
unassigned fund balance in the General Fund sktall be no less than 55% of annual budgeted
expenditures.
s
Major Initiatives
The population of Cottage Grove has increased from 833 in 1950 to 34,589 per the 2010 census.
Most of the population of the City concenhates in two age groups 0 - 19 yeus, 32.5% and 30 - 50
yeus, 38.1%. According to the 2010 census, the average age is 35 yeus and the median family
income is $8Q830. TMs median family income is 141%Mgher trtan the Twin Cities Meho Area.
Cottage Grove has evolved from a 1970's bedroom community to a steadily growing suburb with
an expanding commercial and industdal base. The 1990's and euly 2000's saw a residential
development boom, with several yeus of building permits for single family homes numbering
over 300 per yeu. Residential development slowed sigruficanTly since 2007, averaging 60 new
building permits per year. In 2016, the City issued 98 single family residential housing permits
and one permit for a 184 unit senior rental housing project.
Master planr�ing of the 4,000 acre "East Ravine" development occurred in 2003-2006.
Development of the first one thousand acres of low density residential housing with puk and open
space amenities and nodes of commercial use was anticipated by 2015. In reality, development of
this uea began in eamest in 2013 with the approval of two residential plats totaling 226 lots on
100 acres. Residential developers continue to pursue acreage for development in the master plan
uea and the City expects another 160 acres to begin development in 2017.
The City shategy of growth in the residential and commercial/industdal ueas, providing more
homes andjobs, will ultimately draw the additiortal retail storefronts and services the community
demands.
Awards and Acknowledgements
The Govemment Finance Officers Association of the United States and Canada(GFOA) awuded
a Certificate of AcMevement for Excellence in Firtancial Reporting to the City of Cottage Grove
for its Comprehensive Annual Financial Report for the yeu ended December 31, 2015. TMs was
the twenty-sixth consecutive yeu that the City has acMeved this prestigious awud. In order to
receive a Certificate ofAcMevement, a govemment must publish an easilyreadable and efficienTly
orgaruzed Comprehensive Annual Financial Report TMs report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of AcMevement is valid for a period of one yeu only. We believe that our current
Comprehensive Amual Financial Report continues to meet the Certificate of AcMevement
Progiam's requirements and we ue submitting it to GFOA to determine its eligibility for another
certificate.
Prepuation of trus report would not have been possible without the dedicated service of the
Firtance Department staff to whom I express my appreciation, especially Cathy Mohr and Lauren
Reichstadt-Nacu. Appreciation is also due to the Mayor, City Council members and City
Adminishator for their support in maintaining a fiscally sound and stable orgaruzation in the
service of its residents and business owners.
s
Respectfully Submitted,
CITY OF COTTAGE GROVE, MINNESOTA
;�=�'/���
Robin Roland
Firtance Director
�
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a
G�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial '
Reporting ;
Presented to
City of Cottage Grove ';
Minnesota '
For its Comprehensive Annual
Financial Report
for khe Fiscal Year Ended
December 31, 2015
���'/"7 '���r''
Executive Director/CEO '�
e
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�o
CITY OF COTTAGE GROVE, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31,2016
Elected Officials
Term Expires
Mayor:
Myion Bailey December 31, 2016
CouncIl Members:
Steve Dennie December 31, 2018
Justin Oleen December 31, 2016
Jen Petereon December 31, 2016
Dave Tlriede December 31, 2018
Appointed Personnel
City Adiruniehator C}tadene Stevene
Firtance Director Robin Roland
City Clerk Joe Fiechbach
CityEngineer/CommunityDevelopmentDirector JenniferLevitt
Public Safety Director Craig Woolery
Public Works Director Lee Burehten
Puke and Recreation Director Zac Dockter
��
� • • . • - •
• • •
Cottage G rove
Cit¢ens
clrycouna� ndNsory
Commissions
CiryAdministrator Ciry
Attomey
Community Adminishzfion Finance PublicSafety Parl¢and publicWorl¢
Development Recreation
Economic CityClerW
Development Elections Accounfing Patrol Parl¢ Streets
Human Enterpnse ReeVBuilding
Planning Resoumes Billing Investigafions Recreation Maintenance
Communiry
Building/Code progrzms/ Payroll Public Safety Ice Arena Utilifies
Inspections Communications Progrzms
Hi4oric River Oaks Golf Animal &Code Fore4ry/
Preservation Course MIS Enfomement HORiculNre
Fira&
Engineenng Emergency
Management
EMS/Medical
Services
Fire
Inspections
Updated 112015
12
II. FINANCIAL SECTION
13
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�a
C: berganKov
Tndependent Auditor's Report '��.
Honorable Mayor and Members �
of the City Council �
City of Cottage Grove ��.
Cottage Grove,Minnesota .
Report on the Financial S4atemenYs .
Wc have audited [he accompanying finnncinl statements of the govemmental activities, the �
business-type acfivities,the discretely presented component unit, each major£und and the _
aggregate remai�ing fund information of the City of Cottage Grove, Minnesota, as of and �
For Che year ended December 31, 20 L6, a�d the related�otes to finaneial statements,whieh
collectively oomprise the City's basic 'financial sCafements as listed in the 1'a6Le of Contents.
MauagemenYs Responsibility for thc Financial SYatemenYs
Management is responsible for the preparation and Faie presentxtion of tlsese£mancial ,
statements in accordance with acoounting prinoiples generally aecepted in the United States
of America; lhis includes the design, implementation, a�d maintenanoe of intcrnal control
�eleva�f to tlie preparation and fair presentation of financial statements thxt aze free from ;
material misstateme�t, whether due to fra�d or error. �;
Auditor's Responsibilily ',
Our respousibility is to exp�ess opinions on these fina�cial stateme�Ts based on our audit. '�,
We conducted out audit in accordnnce with xuditing standai�ds geneially accepted in the .
United States of America and the standards applicable to financial audits conYxined in �.
Government duditing SXandards, iss�ed by the Comphroller General of the United Stztes. '�
Those standards require that we plxn and perfoim the audit to obtuin i�usonable assurance ��
about wheTlier the financial statcmcnts are free from mztenal misstaCement. ��
An audit involves pecForming procedi¢es to obtain audit evide�ce about the amou�Ts and '�
discLosures in the financial sTatements. The procedures selocted depend on the xuditor's
judgment, including the assessme�t of the rislcs of material misstaYcmmit of the tittanciat �
staicments, whcther due to fraud or error. In mxking those risk assessme�ts,the auditor i
oonsiders internal wntrol relevant W the City's preparation and fair presentation of the '�.
6tiancial statements in orde�to design audit prooeduees that are appropriate in the ��,
ciroumstances, but not Tor fhe purpose of expressing an opinion o�the effectiveness of the ',
City's intemul control. Accordin�*ly, we express no such opinion. An audit also includes �'.
evaluating the appropiiateness of accounting poticies used and the reasonableness of �
signiflcant accounting estimates �nade by management, as well as evaluating the overall
p�esentation of the financial sYatements. �
BerqanK�v,Lttl. -
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� 15 �
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Auditur's Responyibility (Confinued)
W e believe that the audit evide�ce we have obtained is sufFcient and appropriate to pzovide
a baaie for our audit opinion.
Opinions
In our opinion, the fmanciul stnlements rcYen�ed to in the fi�st paragraph presentt�airly, in a11
material eespects, the respective financial posiYion o£the governmental activities,the
business-type aoYivities,the discretety pteseuted component�nit,each major fund, and the
aggregate remaining fund information of thc Ciry of Cottagc Grove, Mimiesota, as of
December 31, 207 6, and the respective changes in l5naucial position and, where xpplicable,
castt flows [hcreof,for the yea�then ended in acwrdance with accounting principles
generalLy uccepted i� the United States of Ameeica.
Other MaEters
Reluired St�pplemerztary Cnformatton
Accounting pttinciples generally aecepted in the United Sfates of Ameriea�equire that the
ManagemenPs Discussion and Analysis, which Collows this letter, and the Requii'ed
Sopplementnry Infocmxtion as listcd in the Tabte of Contents be prescnted to supplement the
basio Financiul atatements. Sueh info�matio�, although not a part of the basic finunciat
statcmcnts, is requi�ed by the Govemmental Awomiting Standards Roazd (GASB),who
conside�s it to be an essenlial part of finanoial �epoiting for plucing the basic fmancial
stateinents in an appropciate opeiational, economic, or histo�ical co�text. Wehave applicd
certai� limited procedures to the Required Supplementary Information in accordance with
audiling sfandards generally acoepted in the United StaEes of America,which coosisted of
inquirios of management about the methods of preparing the infoanation end compariig 8ie
information for consistency with management's responses to our inquiries,the basic
finanoial slatcments, and other Imowledge we obCained during ow�audit of the bxsic
tinanoial statements. We do not express an opinion or provide any aasurance on tlie
informution because the limited proeedu�es do not provide us with su�cient evidence to
express an opinion or provide a�y xssurance.
OKher lnformation
Our audit was co�ducted For Che purpose offorming opinions on the tinaneial statements
Yhat collec6vely comprise tlie Ciry of Cottage Grove's busic finanoial statements. The
in6roducWry soction, wmbining and individual Fund statemenYs and schedules,
sup�(ementary finxncial inPormation and sfatistical section, ate presonted for pu�poses of
additional analysis and are not a requi�ed paiT of the busic tinancial stateme�ts.
�s
cC berganK�v
Other Matters (Continued) i
Other bxformah'on (Continved) .;
"Che combinin� and individual f'und slatemenls and schedules and supplementary financial ��_
information are the responsibiliTy of management and were derived Crotn and relates directly '�,
to tha miderlying accowiting and other�ecoids osed to prepare 8ic basie financial ',
statements. Such information has bcen sub,jected to the auditing procedures applied in thc '��
audit of the basic financial statemenTs and eertain additional procedures, including '.
oomparing and roconciling such information direcfly to the underlying accounting and other �'�,
�ecoids �sed to prepare tho basic financial statements or to the basic finaneial statements '�
tltemselves and other addi[ional prooed�res in acwrdancc with auditing standuds gene�ally '�,
accepted in thc United States o£Ame�ioa. ln our opinion,Tlie combining attd incLividual ��
nonmajor fund staYements and schedules and supplementai�y financial information are fairly '�.
stuted, in all mateeial �espects, in relation to the basic financial statements us a whole. .
The introductory and sta[istical secLions Itave not been subjected to the aoditing procedures
applied in the audit of the basio financial statcments, and accordingly, we do not expiess an �.
opinion or provide any nssui�ance on them.
Report on Summarized ComparaKi»e Injormalion _
"lhe finaricial statements includo pv'tiul prior yecu'comparative information. Such :
information does not include all of the information required to conslitute a presentarion in ;
accordance with acwunting principles gene�alLy accepted in tlie United SYates of Ametica. '.,
Accoidi�gly, such infoemation should be read in conjunction with the CiTy's basic finaneial '�
statemenfs Cor the year ended December 31, 2015, from which such partial infoemxtion was �,
derived. �
We havc previously audi[ed the CiTy's 2015 finanoial statements and our ceporl, dated �
May 16,2016, expressod unmodified opinions o�tlie respective financial statements of the
governmentnl aclivities,Yhe busincss-type activities,Yhe discretely pi�esented component
unit, eaeh majot' ftmd, xnd the agg�egate remaining fund infonnation. In our opinio�, the '�
summarized comparativo iuforroalion presented herein as of and for the year ended j
Uecembe�31, 2015, is consistent, in all inaCerial respecCs, with the uudited finanoial �'��.
sYatements from which it has been de�ived. �
n
(: berganKov
Other Reporting Required by GovernmeniAudi[ing Stnndards
In accordance with Governme»!Audi�ing SKandm�ds, we have also issued our report dated
7une 2, 2017, on our wnsideratio�of the City oFCottage Ueove's inCernal conLrol over
fi�nncial ceporting and on our tests of its comptiance with ceHain provisions of Luws,
regulations, contracts and grant agreements, and other mattecs.The purpose of that report is
to desc�ibe lhe scope of our testing of intemal control ove�fi�a�cial reporting and
compliance and Yhe eesults of that tesli��g, and not to provide an opinion o�inLemal control
over financial �eporling or on compliance."fhal report is an inYegial part of an audiY
perfotmed in accordance with Ga»ernmentAuditingStandm�ds in considering the City oF
CoUage Grove's internal conh'ol over fmanoial reporting and compLiance.
�.��,,,,r�av�d .
Minneapolis, Minnesotu
June2, 2017
�a
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Cottage Grove, we offer readers of the City of Cottage Grove's
financial statements this narrative overview and analysis of the firtancial activities of the City for
the fiscal yeu ended December 31, 2016. We encourage readers to consider the information
presented here in conjunction with additional information trtat we have furnished in our letter of
hansmittal,wMch can be found on pages 3 through 7 of this report.
Financial Hiehliehts
• The assets and deferred outflows of resources of the City of Cottage Grove and the EDA
Component Urut exceeded its liabilities and deferred inflows ofresources at the close of the
most recent fiscal yeu by $227,347,727 (net position). Of this amount, $32,84Q252
(unreshicted net position) may be used to meet the govemmenYs ongoing obligations to
citizens and creditors in accordance with the City's fund designations and fiscal policies.
• The City's total net position increased by $428,404. The increase is due to reimbursements
and bonding for construction proj ects in the City.
• As of the close of the current fiscal year, the City of Cottage Grove's govemmental funds
reported combined ending fundbalances of$27,186,955 a decrease of$5,546,334 compued
to the previous yeu. Approximately 88% or $23,94Q568 is available for spending
according to the City's policies and conshaints.
• At the end of the current fiscal yeu, unassigned fund balance for the General fund was
$9,036,425 (55%) of the total subsequent yeu General fimd expenditures.
• At the end of the current fiscal yeu, the City of Cottage Grove had total long-term debt
outstanding of$28,47Q265, an increase of$1,748,033 or 6.5% compued to the previous
yeu. The City issued $4,275,000 in General Obligation Improvement bonds and
$4,660,000 in General Obligation Refunding Bonds in 2016.
Overview of the Financial Statements
TMs discussion and analysis is intended to serve as an inhoduction to the City of Cottage Grove's
basic firtancial statements. The City's basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the firtancial
statements. TMs report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-widefinancial statements. The government-wide firtancial statements ue designed
to provide readers with a broad overview of the City of Cottage Grove's firtances, in a manner
similu to a private-sector business.
The statement of net position presents information on all of the City of Cottage Grove's assets and
deferred outflows of resources and liabilities and deferred inflows of resources, with the difference
19
ManagemenYs Discussion and Analysis(continued)
between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the City of Cottage Grove is
improving or deteriorating.
The statement of activities presents information on how the City's net position changed during the
most recent fiscal year. All cktanges in net position ue 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 ue reported in ttus statement for some items that will only result in cash flows in future
fiscal periods (e.g. uncollected taxes and euned but unused personal leave time).
Both of the govemment-wide financial statements distinguish fimctions of the City of Cottage
Grove that ue principally supported by taxes and intergovemmental revenues (govemmental
activities) from other fimctions that ue intended to recover all or a significant portion of their costs
through user fees and cktarges (business-Type activities). The govemmental activities of the City of
Cottage Grove include general government, commuruty development, economic development,
public safety, public works, and culture and recreation. The business-Type activities of the City of
Cottage Grove include sheet lighting water and sewer, and an ambulance service.
The govemment-wide financial statements include not only the City of Cottage Grove itself(lmown
as the primary govemment),but also a legally sepuate EDA component unit for wMch the City of
Cottage Grove is firtancially accountable. Financial information for trus componentunitis reported
sepuately from the financial information presented for the primuy govemment itself.
The government-wide firtancial statements start on page 33 of this report.
Fund financial statements: A fund is a grouping of related accounts that is used to maintain
conhol over resources trtat ktave been segregated for specific activities or objectives. The City of
Cottage Grove, like other state and local governments, uses fund accounting to ensure and
demonshate compliance with finance-related legal requirements. All of the funds of the City of
Cottage Grove can be divided into two categories: govemmental funds and proprietuy funds.
Governmental funds: Govemmental funds ue used to account for essentially the same functions
reported as govemmental activities in the govemment-wide financial statements. However, unlike
the govemment-wide financial statements, govemmental fund financial statements focus on neu-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal yeu. Suchinformationmaybe useful in evaluating a govemmenYs
neu-term financial requirements.
Because the focus of govemmental funds is narrower trtan trtat of the govemment-wide firtancial
statements, it is useful to compue the information presented for govemmental funds with similu
information presented for govemmental activities in the govemment-wide firtancial statement. By
doing sq readers may better understand the longterm impact of the City's neu term financial
decisions. Both the govemmental fund balance sheet and governmental fimd statement of revenues,
expenditures, and change in fund balance provide a reconciliation to facilitate this comparison
between govemmental funds and govemmental activities.
zo
ManagemenYs Discussion and Analysis(continued)
Informationis presented sepuatelyin the govemmental fund balance sheet andin the govemmental
fund statement of revenues, expenditures, and changes in fund balance for the City's six individual
major govemmental funds. They ue as follows:
• General Fund
• Municipal Building Capital Project Fhnd—Capital project fund
• MSA Conshuction Capital Project Fhnd�apital project fund
• Closed Debt Fund—Debt service fund
• Pavement Management Debt Service Fund—Debt service fund
• Pavement Management Capital Project Fund- Capital project fimd
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major govemmental funds is provided in the form of
combirung statements elsewhere in the report.
The City of Cottage Grove adopts an annual appropriated budget for its general and special revenue
funds. A budgetary compuison statement has been provided for those fimds to demonshate
compliance with trus budget.
The basic govemmental fund firtancial statements start on page 36 of this report.
Proprietary funds: The City of Cottage Grove maintains four enterprise funds and three intemal
service funds as a part of its proprietary fund type. Enterprise funds ue used to report the same
functions presented as business-type activities in the govemmental-wide financial statements. The
City of Cottage Grove uses enterprise funds to account for sheet light operations, ambulance
service, water operations, and sewer operations. Intemal service funds ue an accounting device
used to accumulate and allocate costs intemally among the City of Cottage Grove's various
functions. The City of Cottage Grove uses intemal service fimds to account for self-insurance,fleet
maintertance, and information technology services activity. Because these services predominanTly
benefit govemmental rather trtan business-Type functions, they have been included witrun
governmental activities in the govemment-wide firtancial statements.
Proprietuy funds provide the same Type of information as the govemment-wide financial
statements, only in more detail. The proprietary fund firtancial statements provide sepuate
information for sheet ligM operations, ambulance service, water operations, and sewer operations,
all ofwMch ue consideredto be major funds ofthe City of Cottage Grove. Conversely,the intemal
service funds ue combined into a single, aggregated presentation in the proprieTary fund firtancial
statements. Individual fund data for the intemal service funds is provided in the form of combirung
statements elsewhere in this report.
The basic proprietary fund financial statements start on page 41 of this report.
Notes to the financial statements: The notes provide additiortal information that is essential to a
full understanding of the data provided in the govemment wide and fund firtancial statements. The
notes to the firtancial statements start on page 44 of this report.
z�
ManagemenYs Discussion and Analysis(continued)
Other information: The combining statements referred to eulier in connection with non-major
governmental funds and intemal service funds are presented immediately following the required
supplementary information. Combirung and individual fund statements and schedules start on page
95 of this report.
Government-wide Financial Analvsis
As noted eulier, net position may serve over time as a useful indicator of a govemmenYs financial
position. In the case of the City of Cottage Grove, assets exceeded liabilities by$227,226,934 at
the close of the most recent fiscal yeu.
The lugest portion of the City of Cottage Grove's net position ($186,898,337 or 82%) reflects its
investment in capital assets (e.g. land, buildings, macMnery, and equipment) less any related debt
used to acquire those assets that is still outstanding. The City of Cottage Grove uses these capital
assets to provide services to citizens; consequenTly, these assets ue not available for future
spending. Although the City of Cottage Grove'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.
Ciry of CottzRe Gcove Ne[Posi[ion
6ovaxvnenfelActivities B�sinusLypeActivitiu TofelArmery6ovaxvnmt
2016 2015 2016 2015 2016 2015
CmraRendothaess0s SAS,S1QG33 $44,131,434 $15,4"]4,515 $15,35Q060 $6Q993,548 $SQ49Q504
Cepifelesse6 16QffiQ991 15Q6]$63"] 54,063,4"]0 54,812,566 94,333,461 205,491,203
Tofelesse6 205"]89.OPA 154,81Q011 69,531,985 "]Qt"]1,636 Z15,3Z1,009 261,981,"]G']
Def ed o�ttlows of
ruowces 14,356,983 1,90.h,3PA 1,"]"]1,666 95,065 16,128,649 2,ll9,389
Lovg-taxn liebilitiu
o�ftendivg 25,825,1&] 23,88$688 P2,PA1 1Q"]PA 25,84"],428 23,90$412
Pensicnliebility 22,034,26] $463,113 2,"]"]$185 t,ll$083 PA,812,452 Q581,196
Othaliebilitiu 10,023,"]02 4,609,G31 488,189 913,595 10,511,891 S,SP2,6L6
TOYzlliebilitiu 51,883,156 3Q96Q832 3,28$615 2,051,402 61,1"]t,"]"]1 3Q012,234
Def ed inflows of
ruowces 2,"]Z1,403 1,138,"]13 329,550 151619 3,056,953 1290,332
Netposition�
Net invutrnmt ivi cepifel
ess0s 132,834,86] 125,562,910 54,063,4"]0 54,202,T0 186,898,33] 1"]Q"]65,680
Restricfed "],60Q138 $"]66,"]06 - "],60Q138 $"]66,"]06
Uvrestnefed 1Q091,443 PA,285,1"]4 13,6L8,016 13,98QS10 32,TQ459 3$ffiQ144
TOYzIveLposition $15Q53$448 $15$614,850 $61,691,486 $6$183,680 $PZ],P2Q934 $P26,"]98,530
An additiortal portion of the Cit}'s net position ($7,609,138 or 3%) represents resources that ue
subject to exterrtal reshictions on how they may be used. The balance of unreshicted net position,
$32,719,459 may be used to meet the City's ongoing obligations to citizens and creditors.
zz
ManagemenYs Discussion and Analysis(continued)
At the end of the current fiscal yeu,the City of Cottage Grove is able to report positive balances in
all three categories of net position; for the govemment as a whole, as well as for its sepuate
governmental and business-Type activities. The same situation held true for the prior fiscal yeu.
Governmental Ac[ivities: Govemmental activities increased the City's net position by$920,598
in 2016.
• Program revenue increased overall by $5,218,682. TMs is primarily related to increased
capital giants and conhibutions from the state and county for road construction projects.
• Investment income decreased by$112,721 due to the unrealized loss in the value of
investments wMch ue annually adjusted in accordance with accounting standuds.
Revenues by Source - Government Activities
Other taxes&tax
increment Unres[ric[ed
4� imestment
Opeating6ants& �p�yl6ants& eamings
Contributions� Contributions � � � 1�
SYO 30YO
� �O[her
OYO
' Chargesformrvices
19YO
Pmperty Taxes
j 41YO
23
ManagemenYs Discussion and Analysis(continued)
CiLy of Cotlage Gcove's Changu m Ne[Pos¢ion
6ovaxvnenfelActivities B�sinusTypeAdivities TofelPnmery6ovanmmt
2016 2015 2016 2015 2016 2015
Reven�u
Prognm
Charguforsavices $6,463,450 $6,106,1&! $6,405,041 $6,13Q"]PA $12,86$491 $12,236,908
Opaetivgg'en6endecntnb�ticns 1,616,805 1,231,805 - - 1,616,805 1,231,805
Cepifel�evfsevdecntnb�ticns 1Q2&l,04"] 5,861,631 196,611 361,"]62 1Q48QT8 6,223,393
6enerelrevm�u�.
Propatyfezes 13,956,582 13,394,585 - - 13,956,582 13,354,585
Otherhvxu 1,332,"]40 1,Z14,31"] - - 1,332,"]40 1,Z14,31"]
(3ren6 end contrib�tions vot
reshided W ryuiEcprogiems 126,058 9Q13] "],"]36 - 133,"]S4 9Q13"]
Uvreshidedivvestrnmteemivgs 285,494 351,1"]0 96,851 131,896 382,345 495,066
6em cn sele ofcepihvl ess0s 1,988 1 988
TOYzlrevm�es 34,125,1"]6 28,33Q829 6,"]0$P%] 6,63Q382 4Q833,463 34,961,91
Ezpen
6en�erelgovemmmt 3,45Q4"]9 2,346,805 - - 3,45Q4"]9 2,346,805
CortvnwiLYdevelopmmt 1,1"]3,011 1,086,15] - - 1,1"]3,011 1,086,19]
Emvomicdevelopmmt 2,251,548 1,46Qll4 - - 2,251,548 1,46Qll4
P�blicsefeLy 1Q153,"]ffi "],662,393 - - 1Q153,"]26 "],662,393
P�blicworks:
Regularcpaeticns 4,583,513 4,"]13,100 - - 4,583,513 4,"]13,100
Covshvdion S,G3Q822 2,T2,S45 - - 5,03Q8P2 2,T2,S45
C�Ih�reendrerneeticn 5,34Q558 5,153,&!4 - - 5,34Q558 5,153,&4
Ivtautcnlcnglertndebt &]5,612 1,029,P28 - - 8"]5,612 1,029,P28
Streetlieh6 - - "]46,005 "]46,"]94 "]46,005 "]46,"]S4
COGage(3roveEMS - - 1,68$0.h1 1,501,"]66 1,68$0.h1 1,501,"]66
Weteropaetivg - - 2,31Q466 2,43$166 2,3"]Q466 2,43$166
Seweropaetivg 2,"]Z1,188 2,448,283 2,"]Z1,188 2,448,283
Tofel ezpmses 32,8"]4,359 26,164,6ffi "],531,"]00 "],141,009 40,406,059 33,305,635
Ivcreere(decrees)iv veGposition before
trensfasevdryecielitans 1,25Q81"] 2,166,203 (8P2,413) (S1Q6Z]) 428,40.h 1,655,516
Trensfas (330,99) 613,&]8 330,99 (613,3"]8)
Ivcreere(decrees)ivveLposition 92Q598 2,"]8Q081 (492,154) (1,1PA,505) 428,40.h 1,655,516
Netpositicn-Sen�eryt 15$614,850 162,50$&]1 6$183,680 "]0,328,422 2ffi,"]98,530 232,831,293
Cum�letive etfut of chenge iv
m�vtingpnvciple (6,614,102) (1,020,23]) Q,694,339)
Netpositicn-Sen�erytesruteted 158,614,850 155,834,"]69 68,183,680 69,308,185 226,"]98,530 225,142,954
Netposition-Decemba3l $15Q53$448 $15$614,850 $61,691,486 $6$183,680 $2Z],P26,934 $2ffi,"]98,530
The following cktart illushates the City's expenses and corresponding program revenues for its
governmental activities.
za
ManagemenYs Discussion and Analysis(continued)
Siz,000,000
Sio,000,000
Ss,000,000
Se,000,000
Sa,000,000
� ■Revenue
$2,000,000 ■Expense
$-
t��zc` ��' Q�ec` c`P�e� �°,�o" �° e�� �ae�
���`��e Jc ���o wa�ew QJ��� o�C� � �`�d} �o
,jts z `oa.
y� y� ir• t�
b 8�F` �oc+' �`d'W �v�, d
Q°
BusinessTypeActivities Business-Typeactivitiesdecreasednetpositionby$492,194. Belowue
graphs showing the business-type activities revenue and expense compuisons.
Revenues - Business type Activities
CapiTal gants&
mntributions
3y Unrestricted
� imestment
eamings
2%
Chargesfor
mrvices
95%
25
ManagemenYs Discussion and Analysis(continued)
Expenses and Program Revenues-
BusinessTypeActivities
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
�� c�°�� a� �8
c�
�Expenses ■Rograrnrevenues
In business Type activities,changes innet positionwere negative for all funds except Cottage Grove
EMS.
Financial Analvsis of the GovernmenYs Funds
Governmental Funds. The focus of the City of Cottage Grove's govemmental funds is to provide
informationonneu-terminflows,outflows,andbalancesofspendableresources. Suchinformation
is useful in assessing the City of Cottage Grove's financing requirements. In particulu,unassigned
fund balance may serve as a useful measure of a govemmenYs net resources available for spending
at the end of the fiscal yeu.
At the end of the current fiscal yeu, the City of Cottage Grove's govemmental funds reported
combined ending fund balances of$27,186,955 a decrease of$5,546,334. Committed, assigned
and unassigned fund balance wMch is available for spending at the governmenYs discretion ktas a
balance of $23,940,568 at yeu end. The remainder of the fund balance is non-spendable or
reshicted to indicate itis not available for new spending because ithas already been obligated 1)to
pay debt service ($3,055,31'� 2) for prepaid items ($16,945) 3) for inventory($28,750) 4) to pay
for capital improvements ($117,610) and 5) for future er.penditures ($27,765).
The General fund is the cMef operating fund of the City of Cottage Grove. At the end of the current
fiscal year, unassigned fund balance of the General fund was $9,036,425 wMle total fund balance
was $1 Q440,847. As a measure of the general fund's liquidity, it may be useful to compue both
unassigned fimd balance and total fund balance to total fund exPenditures. Unassigned fund
balance represents 55% of total subsequent yeu General fimd expenditures, wMle total fund
balance represents 64% of the same amount.
zs
ManagemenYs Discussion and Analysis(continued)
The General fund balance increased by$187,410. TMs increase is primarily due to an increase in
cktarges for services resulting from development activityin the city. Revenues exceeded budget by
$424,088 due to Mgher trtan expectedbuilding permitrevenues and chuges for engineering services
from development and infrastructure projects. Expenditures were $139,849 under budget due to
reduced public works expenses for snow and ice conhol resulting from a mild winter.
The Murucipal Building Fund increased $229,068 due to proper[y tax revenues collected for
repayment of the interfund loan wMch funded the Public Safety/City Hall project in 2012.
The MSA Construction Fund decreased by $4,791,350 due to construction project costs on 70�'
Sheet and Jamaica Avenue and Hadley Avenue.
The Closed Debt Fund increased by$185,557 due to interfund loan interest and special assessment
revenues.
The Pavement Martagement Debt Service Fhnd increased by $506,697 due to special assessment
revenues collected in excess of debt service requirements.
The Pavement Management Capital Project Fhnd decreased by $183,986 due to 2016 Pavement
Management project costs prior to the issuance of murucipal bonds wMch firtanced the 2016 and
2017 Pavement Management project costs.
Proprietary funds: The City of Cottage Grove's proprietary funds provide the same Type of
information found in the govemment-wide firtancial statements,but in more detail.
Business-Type activities decreased the City's net position by$472,649 in 2016.
Budeetary Hiehliehts
General Fund.
The General Fund actual results were different trtan the final budget amounts due to the following:
• Licenses and Permits categories were $20Q105 more trtan budgeted due to increased
commercial/institutiortal building permitting in 2016.
• Intergovernmental revenues were $82,721 more tttan budget due to unanticipated Federal
and State grant revenues and public safety aids.
• Cktarges for services were $155,955 more than budgeted due to increased engineering fees
resulting from increased construction and development activity.
• Fines revenues were $21,360 more trtan budgeted due to increased revenues passed through
to the City from the state and county.
• General govemment expenditures were $35,409 more than budgeted amounts due to
additional saluy, benefits and professional service expenditures related to unanticipated
personnelchanges.
• Public safety expenditures were $53,630 more than budgeted amounts due to personnel
cktanges.
z�
ManagemenYs Discussion and Analysis(continued)
• Public works expenditures were $209,066 lower trtan budget due to lower personnel costs,
supplies and conhactual services related to the effects of a moderate snow and ice removal
season.
• Culture and recreation expenditures were $44,002 less trtan final budget due to reduced
operatiortal costs in the Recreational division.
Caoital Asset and Debt Adminis[ration
Capital assets: The City of Cottage Grove's investment in capital assets for its govemmental and
business-Type activities as of December 31, 2016, amounts to $214,334,461 (net of accumulated
depreciation). TMs investment in capital assets includes land,buildings, infrastructure,macMnery
and equipment.
City of Cottvge Grove's Capital Assets
(Net of Depceciation)
(3ovemmental Ac[ivifies B�9vessiypeActivities Total Himary(3overnment
2016 2015 2016 2015 2016 2015
Landandlavdimpcovements $ll,92],]8] $ll,92],]8] $354,05] $354,852 $18281,844 $18,282,639
Easemevls 1,15],202 1,15],202 - - 1,15]�1.02 1,15]�1.02
Covstructiovivpcog�ess 9,248,106 500,898 - - 9�1.48,106 500,898
B�ildivgsandimpcwemenls 20,086y52 20,890,355 1�95,131 1,]12,619 21,682,083 22,602y]4
Fquipmentandfw'niNre 244,095 314,540 - - 244,095 314�40
Machivery and equipruent 4,68],142 4,66],519 511,]56 615,843 5,198,898 5,283J62
Otlierimpcwemenls 4,389,591 3,032,]31 4�]],885 4,5]Sy62 Sy6],4]6 ],611,693
WrastruRure:
Sheets ]6,438,326 ]5,893,083 - - ]6,438J26 ]5,893,083
Stortnsewers 21,669,116 22,439,016 - - 21,669,116 22,439,016
Sidewalks/trails 4,422,6]4 3,855,506 - - 4,422,6]4 3,855�06
Waterandsewerlives 4]024641 4]�50,290 4]024641 4]�50,290
EvAvgbalance $16Q2]Oy91 $15Q6]8,63] $54,063,4]0 $54,812�66 $214�34,461 $205,491,203
The lugest addition to capital assets in 2016 were the improvements to sheets and other
infrastructure due to the 2016 Pavement Martagement project,reconshuction of the Hadley and 95�'
Sheet intersection and the Jamaica and 70�' Sheet intersection, and construction of the
infrastructure in the Summers Landing residential housing development.
Additional information on the City of Cottage Grove's capital assets can be found in Note 5.
Long-term debt: At the end of the current fiscal yeu, the City of Cottage Grove ktad total long
term debt outstanding of $28,47Q265, an increase of $1,748,033. $2,622,837 of the debt
outstanding is due wittun one yeu. $20,441,447 of bonds payable is for pavement martagement
debt being repaid by a combirtation of special assessments and property tax levies.
za
ManagemenYs Discussion and Analysis(continued)
City of Cottage Grove's Onts[mutingDebt
2016 2015
(3ovemmevtal activities:
Bovdspayable,vet $2],436,124 $20,2]3,235
Capitalleasepayable-EDA - 4,805,000
Capitalleasepayable—golfcarts - 3],432
ONerpos[employmentbene5ts ]2,888 65,521
Compensatedabsences 8]550] 85]206
Total governmevtel activities 28 384 519 26 038 394
B�9vess-lype activities:
Bovdspayable,vet - 609,856
ONerpos[employmentbene5ts 10,645 9,555
Compensatedabsences ]5101 64364
Totalb�sivessiypeactivities 85]46 683]]5
Totalprimazygovemment $28,4]Q265 $26,]22,169
The City of Cottage Grove holds a general obligation debt rating of Aal from Moody's (2010
Global Ratings Scale) and of AA+/Stable from Standard and Poor's. According to S&P, Cottage
Grove has "a shong financial profile, anchored by a very shong general fund balance; and good
management practices that ktave contdbuted to the city's ongoing firtancial health."
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total
Estimated Muket Value. The current debt limitation for the City of Cottage Grove is $93,740,412.
Of that limit, $4,660,000 of the City's outstanding debt is counted within the statutory limitation
because all other debt is either wholly or partially repaid by revenues other trtan general property
taxlevies.
Additional information on the City of Cottage Grove's long-term debt can be found in Note 6.
Requests for information: TMs financial report is designed to provide a general overview of the
City of Cottage Grove's finances for all those with an interest in the governmenYs finances.
Questions conceming any of the information provided in this report or requests for additional
financial information should be addressed to Finance Director, 12800 Ravine Pukway St, Cottage
Grove, Minnesota 55016.
ze
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30
BASIC FINANCIAL STATEMENTS
31
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32
CIiY OFCOiiAGE GROVE,MINNESOiA
STATEMENT OF NET POSRION 6fa[e�vrt 1
Duar�ber31,2016
WitliCompartiveD�aasofDecemba31,2015
Compovev[Ueti[
Primary Govaeu��[ Total Ecovorttic Totals
Govemmevtal B�sivus-Type Pnrtary Drvelopm�[ kwoNvgEvtity
Activitiu Activitiu Govertu�ev[ A�tlionty 2016 2015
Assfts
Cazhar�divves[mev6 $ 3&211,919 $ 9,"]8$961 $ 4"],9Y1,880 $ - $ 4"],9Y1,880 $ 4&021,439
Acwedivte�es[receivable 154��� - 154��� - 154��� 201,553
weGomotl�ergovemmevrd�min-va �,3oqx5a �g'rio �,3�5,oxa - �,3�5,oxa x5�,oxe
Acm�vtxvecavable-vet 534�90 1,41$"]12 1,94$902 I;al"] 1,959,"]19 I,a32445
aepvdi�s xoqo4� �sg�ss 35gxox - 35gxox 34Z554
Delivq��[pmpatytc:esvecavable 12$92"] - 12$9Z] 1,0"T3 IZ1,000 12"],560
D�effom mwty 8$41"] - 8$41"] - 8$41"] 9$O51
Speoalassessm�6vecavable "],61$533 - "],61$533 - "],61$533 $99$11"]
�vv�mves-amn �xqo53 - �xqosi - �xqo53 5�,eie
m�alnalarmu (a,ovs9s"� a,ovs9n _ _ _ _
I,�sereceivable - - - - - 4,aos,000
Loar�vecavable - - - 384,608 384,608 -
ROP�esheld f rvesale 261,498 - 261,498 311,"]18 519,216 2519,216
Firereliefpevsiovassee �,00439a - �,00439a - 400439a "rz5,�o�
Capitalassetxmtbavg depredared
We�dar�dlae�dimP�vem�6 1"],9Z1,"]8"] 32$000 1$252"]S] - 1$252"]8"] 1$252"]S]
Eazar�ev6 1,151,202 - 1,151,202 - 1,151,202 1,15"],202
covso-�cnovi�pmgess 5,x4gme - 5,x4gme - 5,x4gme soqa5a
eapitalassetx(vetofaccumWaed depvevatiov)�.
We�dimpmvar��6 - 29,05] 29,05] - 29,05] 29,851
B�ilrlivgsae�dimpmvar��tx 2qoa4952 1,59$131 21,6a2 oa3 - 21,6a2 oa3 22 6o2Y14
Fq�ipm�[ar�d[umiNre 244,095 - 244,095 - 244,095 314,540
Macltivayar�deq�ipm�[ 4,651,142 511,"]56 $19$898 - $19$898 $28$36l
otl,erime�^�� a,3av,sv� a,m,aas a9m,a�a - avmA�e �,au,ev3
�vfi-uo-�cnue �oZsi4��e 4�,ox4,a4� w5,554,�n w5,554,�n w5,'ri�,a55
Totalasse6 205"]89024 6953"]985 Z153Z1009 "]11216 Z16038225 Z10549901
Dekrtedo�ttlowsofvem�ucu:
�ekrredo�ttlows�elaedmdrypevaovs �4,�45,��a �,'n�,bbe �5,524"184 54319 �s,vn,�b3 �,a44,�aa
Dekrtedo�ttlowsvel9edN fiveveliefp�siov 20";865 20";865 20";865 29q661
Totaldekrtedo�ttlowsofvem�ucu 14,354983 1,"T11,666 16,12$649 54319 �4�8$028 2134,850
Tord assasar�d defared o�ttlowsofveso�ucu 8 xxqw400� 8 �43o5,a5� 8 x5�,455,asa 8 �m,s55 8 xSZxx;x53 8 zryea4,�5�
❑abilitie.c
Acmw6Payable $ 4,02$114 $ 162095 $ 4,IS1,209 $ $995 $ 4,19$204 $ 1,001,"]45
Salanespayable 614,240 "]$649 "]4"],889 $401 "]54�90 60$881
Covtractxpayable 44$043 - 44$043 - 44$043 23$"T18
D�eN otliergovemmevtal�uti6 253,194 18$940 442134 4"]qZll 912405 34�58
Depoa6 payable 1,"T]$349 - 1,"T]$349 2 000 1,"]84349 4"]4,182
uveamedvevev�e 3Zx�4 3Zxw - 3Zx�4 44�00
Acwedi�tuPstpayable 254��6 - 254��6 - 254��6 39;329
Compevrared abs�cu payable
D�ewitltivoveyear 644,332 6$505 "]0"],83] 1,0"]5 "]0$912 66$95l
D�eivmoretliar�oveyear 231,1"]5 11,596 242"T11 4�61 249,032 251,242
Otliapostar�ploymevtb�efits:
��eivmoretl�ar�oveyear 7taaa �qe45 a;si3 5u a4,444 �s,as�
Napevaovliabiliry
D�eivmoretliar�oveyear 22034,26] 2"T]$185 24,812451 13$049 24,94"],501 9,69$991
Capitalleazepayable
D�ewitltivoveyear - - - - - 32"],432
D�eivmoretliar�oveyear - - - - - 4,51$000
Bovdspayable(va ofwarr�oetizedpvarii�ms)�.
D�ewitltivoveyear 1,91$000 - 1,91$000 - 1,91$000 2109,856
D�eivmoretliar�oveyear 2$S11,124 2$521,124 2$S11,124 2$S]$235
Totalliabilitiu 51883156 3288615 611"]I"Tll 619963 61801"]34 44014368
Defarediv9owsofvesowces:
Uvavailablevevev�e-otlia - - - - - 1,384
Defarediv9owsvelatedN p�siov 2"TL1,403 329,550 3,054933 �4839 $0"T3,"]92 1,299,"Tl4
Totaldekrtediv9owsofvesowces 2"TL1,403 329,550 3,054933 �4839 $OTi,"]92 1,301,108
Ne[positio¢
Ne[ivvu[m�[ivapitalasse6 132834,86] 54,06$4"]0 18489$33] - 18489$33"] 1"]9,"]6$680
kutricted f r.
FovkiNrear�dsaz�ue 2$308 - 2$308 - 2$308 39,166
Charitable-blivg 4,45] - 4,45] - 4,45] 9,405
Debtativar�evt "],492592 - "],492592 - "],492592 "],21&OSL
Ta:iv¢ar�ev[P'uPosu 8$"]81 - 8$"]81 - 8$"]81 2011,222
umestrieed �5,05�,443 �;etgme 3Z��5,455 �x4�93 3da4qxsx 3g3xs,�so
Totalve[positiov 159535448 61691486 2Z1226934 120"]93 22"]34"]"TL"] 2Z13692"]5
Toedliabilitie,de[erzedie�Flowsofvem�ucu
ar�dveepositlov d xx4�44o0� 8 �43o5,a5� 8 x5�,455,asa 8 �m,s55 8 xSZxx;x53 8 zryea4,�5�
33
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34
CIN OFCOiiAGEGROVE,MINNE50iA
STATEMENT OF ACTMTIFS 6fata��[2
ForTheYear Evded December31,2016
Witli Comparative D�a f rtlie Y�r Evded December3l,2015
Nd(E:��s)krvev�eae�d Compov�[
Rogrmr�Itevev�u Char�ges iv Ne[Positiov Ueti[
Opaativg Capital PnmaryGov mev[ Ecovomic
ChargesFor Gav6ar�d Gav6ar�d Govertu�evtal B�avus-Type Totals Developm�[
E:m�s Seevicu Covtrib�tiovs Covtrib�tiovs Activities Activitiu 2016 2015 twtlionry
Fwctiovs/Roermr�s
Pnmarygovemma�[.
Govertu��talactivitie.c
c��ds���m�e a 3asoA�v a aes,�v3 a �ev,�sv a - a (z,a�a,�z� a - a (z,a�a,�z� a (z,ov�,wa) a -
eommwiryaeveloemeve �,�'�i,o�� �,aeo,3es - - 4s�,z54 - 4a�,z54 44�,ei5 -
�000m��aeo�oem�e z,zn,saa s,z�o 333,a3a �,oaa,a�� (aev,e�3) - (aev,e�3) (e��,�sp -
e�nti�.atay �q�s3,�rze a3�,aez sv�,ez� �n,3a3 (a,va49oo) - (a,va49oo) (a,aezvav) -
Wblicwodcs:
aesWar�e���� a,sa3,s�3 v�s,s3z �zs9vo a4vaa (3,a3s,oa� - (3,a3s,oa� (3,ao�,a3p -
coom�ceoo s,o3v,azz - - gaav,�za 3pov,3oe - 3pov,3oe z,ez�,�z� -
ewm�ear�a�e¢ear,00 s,3aqssa z,�zs,zaa asqzm eo�,�a� (�,sei,3oa) - (�,sei,3oa) (z,o�qa�v) -
Ivte�estovlovg-[amdebt 8"]$642 (8"]$642) (S]$642) (1,029,228)
Totalgovae�m�talaetivitiu 328"]4,359 4463A50 1,614805 Iq284,04"] (14,45q05"n (14,45q05"n (12,959,00�
B�avus{ypeactivities:
so-eareh� �ae,00s s3o9os - a�,�n - (�33va3) (�339a3) O�rz,zvo) -
CottageGmveEMS 1,68$041 1,"]66,236 - - - "]$195 "]$195 (14�59) -
wa�oe�eos z,3�o,aae �,an,aez - �39zo - (s3a,eaa) (s3aeaa) (aoa,oes� -
Sewaopaativg 2,"]Z1,188 2,291,038 101,594 (334,556) (334,55� 4,591
Totalb�sivus{ypeactivities "],531,"]00 6,406,041 196,611 (92$988) (92$988) (64$Sl3)
Tordpnmarygovar�meve 8 4q4oa,o55 8 �x,ae5,45� 8 4me,ao5 8 �q4aq��a (w,45qo5'� (5xa,5aa) (�s,n5,o4� (�3,ao�,st5)
compovev[Uetit
EcovomicDrvelopmev[twtlionty $ 92$903 $ 361,458 $ $ (561,445)
Tordcome���ewle a vza9o3 a 3m,asa a a (se�,aa�
eevualvev es.
aopuryr�es �3,55a,sax - �3,55a,sax �3,354,sa5 uq5m
Frm¢hiseta:u 516,931 - 516,931 526,643 -
AggegaRtc:u 39,"]48 - 39,"]48 3"],133 -
Ta:iv¢ar��tmllutiovs "T14o61 - "T14o61 "]14541 -
Grm�tx ae�d mvtrib�tiovs mt
vestric[edNspeaScpmgar�s 124058 "],"]36 13$"]94 99,13"] 526
Uvvestric[edivvu[m�[�mivgs 28$494 96,851 382345 49$066 -
Gavovsaleofapitalazsds 1,988 1,988 - -
Trm�sf (33qx�5) 33qx�5
Totalg�sdvev��e�tr'u�sfa�ae�dryeoali[a�s 1$31q655 436,"]94 1$80"],449 1$26$105 111,493
en�gemoeepos�eoo vzqsva (avz�va) aza,aoa �,ess,ne (aav,vsz)
Ndpoatiov-begiemivg IS$614,850 6$18$680 226,"]98,530 232,831,293 Slq"]45
C�mWativeefkctofchar�geiv
owtivgpnvople (],694,339)
Ndposieov-begiemivgazves2ted IS$614,850 6$183,680 226,"]98,530 22$142,954 Slq"]45
Ndpositiov-evdivg $ 159,53$448 $ 61,691,486 $ 2Z1,226,934 $ 226,"]98,530 $ 12q"]93
35
CIiY OFCOiiAGE GROVE,MINNESOiA
BALANCESHEET
GOVERNMENTALFUNDS
December31,2016
Witli Compartive Da2as of Duar�ber31,2015
M�etiopal MSA
B�ilrlivg Covstr�ctiov
G�sd CapitalPmjec[ CapitalRojec[ Qosed Deb[
Assfts: F�vd Fwd Povd Fwd
eashavdivvestr�evn 8 �q�5gea4 8 x54,�5a 8 - 8 4as;5�a
AcwedivtuPstvecavable 154"1�2 - - -
Iv[ufi�vdvecavable - - - 40$131
Iv[ufi�vdloar�veceivable - - - 2 OOq000
D�efiomotliagovae�mevtal�eti6-vd 23$564 - 8"],41"] -
Acmwtxveceivable-va 3451"] - 5,944 -
ReP�di[a�s 11,222 - - -
IvvevNnu-a[cos[ - - - -
Deliv9��[P�P�Y�P-i'�avable 112653 4,420 - 1,2"T]
D�e fiom mwty 8$41"]
Spedalazsusm�txveceivable
�efured e,aas - etq�ao ��x,exe
Deliv9��[ 442 - 1,"]14 4,091
Speoaldefared - - 3$I55 4,893
ROP�Y held[orverale 26;498
Totalazsds $ 11,442,096 $ 29$618 $ 1,014508 $ 4,381,934
❑abilitiu
Acmwtxe�ble $ 154961 $ 154,a93 $ la;400 $ -
Salanu payable 515,222 - - -
Iv[ufi�vd payable - - 40$131 -
Covtractspayable - - 339,SL4 -
D�eN otliergovertu��talwi6 52165 - 329 -
Deposi6payable "]21Z]
uvearr�edvevev�e 34�ss - - -
Iv[ufi�vdloar�payable "],42$000
Toedliabilities 881,269 "],519,893 92$384
DefaredivFlowsofvesowcu:
Uvavailablevevev�e-pmpatytavu 112653 4,420 - 1,2"T]
Uvavailablerrvev�e-ryeoalazsusm�6 "],3Z] - 65$649 121,610
Uvavailablevevev�e-ivtugovemmevtal - - 8";41"] -
Uvavailablevevev�e-otlier 1,426
TotaldefaredivFlowsofvesowcu 119,980 $846 "]4$066 122,85]
Fwd balar�ces(deEdt)�.
Novry�dable
P�epaditems 11,222 - - -
Ivvartory - - - -
kutricted[or.
FodeiNreae�dseizuve - - - -
Chari2blegamblivg - - - -
Deb[ativemev[ - - - -
Ta:iv¢em�[p�ssposu - - - -
Comrttitted - - - -
Assi�ed 1,39$200 - - 4,259,04"]
Uvassi�ed�.
G�sdF�vd 9,034425 - - -
Speoalkrv��eF�vd - - - -
CapitalRojec[F�vds (],251,121) (654,942)
Tordfi�vdbalavcuCdeSde) �4444a4� p,xs�,�xq fe54,54x) 4,xs5,o4�
Totalliabilitie�defarediv9owsofvesowce,
ar�d[wdbalar�ces $ 11,442096 $ 29$618 $ 1,014508 $ 4,381,934
36
Sfa[v�ert3
Pavem�[ Pavar��[
Maeagar�ev[ Maeagemev[ Otlia Totals
DebtSeevice CapitalRoject Govemmevtal Govemm�talFwds
F�vd F�vd F�vds 2016 2015
8 3,osa,o45 8 x,004a4a 8 n,'m,on 8 35,�aqsio 8 35,'rz49�
- - - �54��� �4�,�30
_ _ d�54,�53 x,s55,xa4 �,ex4�z�
- - 2 645,804 4,64$804 4,261,"]58
- sZox� 5z�,x5o �,3oqx5a xa4s�5
- - 4a3,4aa szs,v4v sv�,3a3
- - s,�x3 �4545 xd��e
- - 2$"]50 2$"]50 2q696
4,a�3 - x,�a4 �xs,5x� �x44'�i
- - - a5,4n v3,o5�
4,589,433 - 2196,9"]8 "],524�02 $916,160
$"]46 - 6,220 21,213 12,084
29,510 - - 6"],618 64,8"T3
26"],498 221"],498
$ "],68$611 $ 20526"T3 $ 2426$20"] $ 53,14$64"] $ 51,11$811
8 500 8 ��qea4 8 Zsn,4xx 8 3,�sgxae 8 aos,�n
69,451 644,613 514,218
_ _ d�54,�53 x,s55,xa4 �,ex4�z�
- 5433� 45,�aa 44;043 x35,'na
- - 199,662 252156 12208
1,"]06,222 1,"T]$349 4646"]9
- - - 34�aa 44�00
�,�45,ao4 a,nqao4 gex�,�sa
voo �m,o�s �9z�9oz �a,mv,3a3 �a�zams
4,813 - 2,"]64 12$92"] 126,4"T3
4,6Z1,"]49 - 2203,198 "],61$533 $993,11"]
- 52026 - 139,443 139,443
1,426 1,384
4,632,562 52026 220$96l "],882329 4�6q41"]
- - s,�x3 �4545 xx,�xe
- - 2$"]50 2$"]50 2q696
- - 23,308 2$308 39,166
- - 4,45] 4,45"] 9,405
3,055,149 - 168 3,055,31"] 2"]64643
- - 11"],610 11"],610 2042151
- - "]31,090 "T31,090 394,204
- 1,23$632 1"],SZ1,6"]0 24,41$549 2"],"T31,0"]4
- - - 5,o344x5 &ax5,ev�
- - (3oz,00z) (3ozooz) (za3,z�a)
P9ve,a3q (v93aava) (aa3v,zn)
3,oss,wv �,z3�,a3z �4�4o,3a3 z�,�a49ss 3z�33,zav
a �,eaa,a�� a dosZcre a z4zea,zm a s3,wgea� a s�,��s,au
F�vd balae¢eveportedabove $ Z1,184955 $ 32"]33,289
Amo�v6�eported f rgovertu�evtalactivitiesiv tlies2[a��[ofvdpositiovarediHe�[becmise
Capitalazsds�sediv govae�m�talactivitiu arem[5vae�dalveso�me,ae�d tliue[ove,
em[�eportedivtliefi�vds 159,23G454 149,646,231
Otlierlovg-[um asse6 arem[available N pay[or curzevPpenod v.^p�rliNR,ar�d tliue[ove,
aredefaredivtlie[wds $881,299 498$�34
Defuredo�ttlowsofveso�aesar�ddefaredivFlowsofvesowcu are�red az aveml[of
�s difk�ces vel9ed N p�aovs tlia[arem[veco�ized iv tlie govae�m�tal fi�vds.
��e�wmaowsoe�o�aes�aeame�9��� (z,em,a�z) (�,ms9zo)
Dekrzedo�ttlowsofvesowcuvelatedNp�siovs 14,154��� 1,859,261
Lovgium liabilitie,ivd�rlivg bovds payable,aremtd�e ar�d payableiv tlie wrz�tpenod
�am��areooe�e�rt���me�oas. (sq�34�rza) (3a,ass,sa3)
Ivtemal seevice fi�vds are�sed bymaea6emevtm char6etlie mn of ivmrm�cem ivrlioid�al fi�vds.
Theazsasar�dliabilitivareivd�dedivtliegovae�m�tals[atm�tar�ev[ofve[positiov 2,S]$"]53 y94$838
Ne[positiov ofgovertu��talactivities $ 159,53$448 $ IS$614,850
3]
CITY OF W TTAGE GROVE,NIINNESOTA
STATEMENT OF REVENUES,EXPENDTTURES AND
CHANGESINFUNDBALANCE
GOVERNPgNTALFUNDS
ForThe Year Evded December 31,2016
With Comparanve Dan for tlie Year Evded December 31,2015
M�vidpal MSA
B�ilrlivg Covstr�rnov
Gevual CapitalPmjec[ CapitalPmjec[ Closed
Revev�es: F�vd F�vd F�vd DebtF�vd
GevualPmP�Y�es $ 12,513,6U] $ 451,543 $ - $ 418
Frumhiseta:es - - - -
Aggregaretarzes - - - -
Ta:ivaemevtwllernovs - - - -
Spedalassessmevts $"]03 - 1Z1,251 9$425
Licevsesandpumitx 1,323,680 - - -
Divec[chargesm developux - - - -
Ie�tugovemmevtal 1,019,511 - 3,21Q444 -
Chargesforservices 612,555 - - -
Revt - 1Q652 - -
FivesandfoReitx 196,360 - - -
IvvestmevtearvivgsQoss) 51,980 961 3Q055 1Q801
Ivtuesrovivtufivdloan - - - 19,480
Covvectiov charges - - - -
Parkderlintiovfees - - - -
Otliersales - - - -
Dovatiovs "],193 - - -
Nliscellaneo�s 166,149 52,SU] 4Q944
Totalvevev�es 16,01"],198 561,663 3,42Q694 126,124
Expevrlimves:
C�rzevt
Gevualgovemmevt 2,18QT9 2$U13 - 1,233
Comm�vity developmev[ l,ll"],"]60 - - -
Ewvomicdevelopmevt - - - -
P�blicsafety "],301,048 - - -
P�blicwovks 2,4U1,299 - 15,242 -
C�ImveandveQeanov 1,942,191 - - -
Capitalo�Hay:
Gevualgovemmevt - - - -
P�blicsafety 184,"]82 284,364 - -
P�blicworks 20,310 - 8,19Q802 -
C�ImveandveQeanov 14$"]92 - - -
Debtse
PnvdP��tivemevt - - - -
Capitalleasepaymev[ - - - -
IvtuestandCrscal charges "]$610
Total vrzpevrlimves 15,302,901 38$04"] $212,044 1,233
Revev�es over(�vd)e::pevrlimves T4,25] 1"]9,616 (4,"]91,350) 124,891
O[herEvanmg so�mes(�ses)�.
Tru�sfuxiv 52$"]13 49,452 - ll5,388
Tru�sfux o�t Q,052,600) - - (54,"]22)
Bovdsismed - - - -
Pvemi�movdebtismed - - - -
PmceedsRom thesale ofnpitalassets
Total otlierCrvanmg so�mes(�ses) (526,88� 49,452 6Q666
Netivaease(deaease)ivfuvdbalance 18"],410 229,068 (4,"]91,350) 18$55]
F�vdbalance-San�aryt 1Q253,43] Q516,189) 4,13Q408 4,U13,490
F�vdbalance-December3l $ 1Q44Q84"] $ Q28"],12p $ (654,942) $ 4,259,04"]
38
Statv�mtG
Pavemevt Pavemevt
Managemevt Managemevt O[her Totals
DebtSuvice CapitalPmjec[ Govemmevtal GovemmevtalF�vds
F�vd F�vd F�vds 2016 2015
$ 596,919 $ - $ 28$641 $ 13,951,128 $ 13,46$98"]
- - S1Q931 S1Q931 52Q643
- - 39,"]48 39,"]48 31,133
- - "T]Q061 "T]Q061 TQ541
1,1"]2,153 - 603,664 2,004,196 1,499,"]96
- - - 1,323,680 1,30$442
- - ZT1,860 ZT1,860 3U1,511
- - 1,412,036 $642,451 2,41$"]54
- - 3,38$"]46 4,061,301 3,80$618
- - 441,426 464,0�8 450,428
- - 39,900 236,260 228,642
9,U12 1Q904 100,190 219,963 262,"]99
- - 32,560 52,040 "]4,340
- - 649,489 649,489 318,092
- - 212,865 212,865 9,010
- - 1,04$8"]1 1,04$8"]1 469,454
- - 449,"]45 45Q938 3]$013
93,452 359,052 29Q8U]
1,"T18,144 1Q904 10,318,185 32,29$912 26,559,4"]0
Q54"] - 92Q564 3,143,136 2,155,3Z]
- - - t,ll"],"]60 1,05$53]
- - 2,23Q464 2,23Q464 1,456,306
- - 14Q010 "],44"],058 6,"]51,804
- 1,"]82 1,"]09,336 4,133,659 4,344,83]
- - 2,49Q43] 4,43$628 4,154,992
- - 24,�09 24,�09 -
- - 8$648 551,"]94 284,23]
- 4,SZ1,820 3,244,01"] 1$98$949 $86$238
- - 480,515 629,"]6] 88"],3Z]
"]5$000 - $81$000 6,51Q000 1,32Q000
- - 3Z1,432 3Z1,432 31Q235
509,900 T,1"]6 361,035 1,023,"]21 912,tU]
1,Z11,44"] 4,60Q"T18 1"],862,6Z] 4"],639,OJ] 29,SOQ94"]
SOQ65] (4,589,8"]4) Q484,442) p5,340,165) (2,94"],4"T])
- 32,968 924,"]3] 1,64$258 3,049,65]
- - (5$242) Q,162,564) (2,362,952)
- 4,2�5,000 4,660,000 8,935,000 5,�00,000
- 51,920 259,"]64 351,684 254,245
1$453 1$453 53,26]
4,40$888 $804,T2 9,"]93,831 6,694,21"]
SOQ65] Q83,986) Q,619,"]30) ($546,334) 3,"]46,"]40
2,54$452 1,41"],618 1"],82QU13 32,"]33,289 2$98Q549
$ 3,055,149 $ 1,233,632 $ 16,140,343 $ Z1,186,955 $ 32,"]33,289
39
CTTY OF COTTAGE GROVE,MINNESOTA
RECONCII.IATION OF THESTATEMENT OFREVENUES, Shtement5
EXPENDITURES,AND CHANQES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTNITIES
For The Year Ended Decemba 31,2016
With Comparative Data for the Year Ended Decemba 31,2015
2016 2015
Amowts reported for gwemmental activities in the
statemevt ofactivities(page 35)are diffaevt beca�se:
Netchangesivlwdbalanms-totalgwemmmtallwds(page39) $ (5,546,334) $ 3,�46,�40
Gwanmental(wds report capital outlays as expendiNres. Howeveq in the
statanent ofactivities the cost ofthose assrts is allocated wertheir estimated usefiil lives
andreportedasdepreciationexpmse. Thisisfhearnowtbywlilchcapitaloutlays
eeceededdepveciatiovivihecmrevtperiod. 9,443,6�4 2�123,�16
The effect of various miscellaneous transactions imolving capital assets is m decrease net position
��.e.��e�,�ao-aae-�o��. �3c,aca� �c�,ass�
Donations of capital assets increase net position in the statement of activities,but do mt
appearinthegwemmental(wdsbecausethryaremtfinancialresowces. 183,013 359,546
Rrvenuesinthestatemmtofactivitiesthatdomtprovidecwrentfinancialresowces 1,621,890 1�46�49
are mt reported as menues in the fnnds.
Gwanmental(wds recogrize pension contributions as eependilures atthe time of
paymmt whaeas the statemmt of activities facmrs in items related m pmsions on a
r��a����pe«pe�e�e. �z,aiz,�i3� �zsi,�is�
The ismance oflovg-te�xn debt(e.g.,bovds,leases)pvovides c��rmt fivancial vesowms
m gwemmmtal(wds,wlille the repayment ofthe principal oflong-tmn debt consumes
the ewrent financial resowces of gwanmental(wds. Neither transactioq howevq has
anyeffectonnetpositioa 11ilsarnowtistheneteffectofthesedifferencesinthetreatrnent
oF�oog-ee�aene�a�e�aeea�eems. (z3zo,as�) (a:�v3e�
Intemal service(wds are used by management m charge the cost ofinmrance
m�oa�.�a���oa�. �rn���o�oe��oee�Neo�e�o���am;n�e�n�e ro go��mmrd a�e.�ee�. ��qoss� �si,�oe�
Some eepenses reported in the statemmt of activities do mt require the use of ewrent
fivancialveso�vmsand,ihaefovqarevotveportedasexpevdiNresivgwemmmtallwds. 58094 (163y94)
Changeivmtpositiovofgwanmmtalactivities(page35) $ 92Q598 $ 2,�8Q081
40
CIiY OFCOiiAGEGROVE,MINNE50iA
STATEMENT OF NET POSITION 6fa[v��[fi
PROPRIETARYFUNDS
December31,2016
B�sivus-TypeActivitiu-Ev[erynseF�vds Govertu�evtal
Total Ac[ivities-
StreeHi�ht CottageGmve Water Sewer Ev[upnse Ivtae�al
Fwd EMSF�vd Operativg Opaativg Fwds SeeviceFwds
Asse[s
C�rz�[asse6�.
Cashae�divvu[mevts $ 1,169,399 $ 1,05$IS] $ 4,584,135 $ 2,9"]4,Z10 $ 9,"]8$961 $ 2,431,389
IVNi{uvdloar�veceivable - - 1,092500 2,832,500 3,92$000 -
D�efiomotliergovertu�evtal�eti[svd - - 11,422 "],308 1$"T30 -
Amowtx veceivable
C�sNmux 91,489 53$819 234056 34$"]92 1,209,156 -
cati5edmco�vry - - 55,035 55,035 �5qmo -
om� �s,vva - 4aa - �44ae 4,z4�
aepaalear�s zvv �,ass Zsva �s3,ao3 �sg�ss �a3,�oz
�vv�mnes-ae�ose v�,3o3
Totalcurzev[assds I,ZT1,185 1,59$431 6,014�34 44�4�08 15,30$558 2,"]Iq035
Novwrzev[asse6�.
Capitalazse6�.
Landae�dlae�dimpmvem�6 - - 364,803 - 364,803 424,665
B�ildivgsae�dimP�vem�6 - - 4,089,"]13 - 4,089,"]13 92$S10
Fq�iPmev[ar�d[urtti[we 184,22"]
Machivayae�deq�ipmev[ 139,222 66$14"] 1,0321"]4 269,1"]5 2,10$"]18 25$Y12
Otherimpmvemev6 "],144099 - - - "],144099 -
Wa[sae�dsewerlives 39,22";449 26,346,41"] 65,51;866
Tord�pirdassen �,xa5,3x� aes,w� 44,��4,�35 x4a�s,s5x �5,xaq�55 �,�53,'�i4
�ss n��mareaaep�aeoo (zess,�a3) (azqzo�7 (w,aa�,v��7 p,zs3,3ea) (zs,z�4Tt9) psv,�v�7
Nee�pirdassen 4,eiq�3a x44,54� x5,ax4�a3 �5,3et,xxa 54,oa;4�o �,o34,si�
Tordvovc�rr�eassen 4,eiq�3a x44,54� x5,ax4�a3 �5,3et,xxa 54,oa;4�o �,o34,si�
Totalazse6 $90"],323 1,843,312 3$84239"] 2$"TT3,936 69,361,028 3,"]44,512
De[erzed o�ttlows:
�efaredo�eFlowsvelaedmp�siov 3q5�5 �,4�4,a5x xogoa3 n,5'rz �,'n�,aae xoqasa
Torddefuredo�ttlows 3q5�5 �,4�4,a5x xogoa3 n,5'rz �,'n�,aae xoqasa
Liabilities:
C�rz�Hiabiline.c
Acmw6payable 34,"]46 12,312 9$39"] 16,580 162095 264848
SalariuPayable 4,2"]9 38,"]83 2;"]4"] 6,840 "];649 29,56]
D�eNotliergovemmevtalwi6 - $O55 1,209 1"]9,616 18$940 1,038
Compevsaredabsevicespayable $416 18,386 2$610 11,033 6$505 2$"TLS
TotalcurzevHiabilities 44,441 "T1,596 152023 214,129 48$189 324��8
NovcurzevHiabilities:
Compevsaredabsevicespayable 1,304 6,428 $596 268 11,596 2$868
otlierpostemploymevtb�e5tx 499 s,an ;Z13 I,o16 Iq645 25n
Netpevaovliabiliry "]4,061 2,066,825 49$434 13$864 2,"T]$185 481,124
Totalvovc�rz�Hiabilities "]$865 2,0"]9,110 50$303 14q148 2,804426 509,549
Totalliabilities 124306 2,156,"]06 651,326 354,ZT] 3,28$615 83$"TL"]
DehrzedivFlows:
DefaredivFlowsvelaRd[opevaov 9,235 24q851 62149 1"],315 329,550 59,991
Totalde[erzedivFlows 9,235 24q851 62149 1"],315 329,550 59,991
Nftpoatiort
Ne[ivve4mev[ivapitalassds 4,63q138 244,941 29,824�63 19,361,228 54,06$4"]0 1,034,53"]
Uvvestric[ed 1,1"]$563 6]$566 $504,842 6,09$088 13,451,059 2,01$1"]3
Tordveepositlov 8 s,aoa,�o� 8 5xqso� 8 35,33�,005 8 xspeo,3�e b�,stqst5 8 3,045,��0
Someamo�vtsveported[orb�sivesstypeactivitiesivtlies2temevtofvetpoatiovaredif[evevt
becmisecertaivivtemalseevicefwdassetxar�dliabilitiesareivd�dedwithb�sivesstypeactivines 1"]q95]
$ 61,691,486
41
CTTY OF WTTAGE GROVE,MINNE90TA
STATEMENT OFREVENUES,EXPENSES AND 9Gtan�[9
CHANGES IN F[RSD NET POSITION
PROPRIETARYFUNDS
For The Yeer Evded Decemba 31,2016
B�sivus-TypeActivitiu-EvtayriseF�vds 6ovanmmfel
Tofel Adivitiu-
StreetLight COGage6rove Weta Sewa EVGryrise Ivtanel
Fwd EMSFwd Opaeting Opaetivg Fwds SaviceF�vds
Operetivg revm�u�.
Cherguforsavices-�safeu $ 53Q905 $ 1,"]66,236 $ 1,"]83,025 $ 2,291,G38 $ 6,311,20.h $ 3,201,689
Wetame[a/streeLlightmetaielselu - - 34,83"] - 34,83] -
Ivswevceretuvds endreimbwsemmfs 1M,Z11
TOYzlcperetingrevm�u 53Q905 1,"]66,236 1,81"],862 2,291,G38 Q40Q041 3,351,960
Opereting es.pmsu�.
Pasovelsavicu 8Q81"] 1,36$199 61Q699 96,516 2,294,291 2,14Q498
Cortvnoditiu SQll6 "]Q280 1"]4,OPA 12,&!1 316,261 492,"]61
Commoditiu-iGmsforresele 54,910 - - - 54,510 -
CovtrecWelsavices 3&],&!9 16Q613 68Q1"]4 333,"]OS 1,511,341 606,855
Cleims - - - - - 163,454
Disposal�.
CovtrecWelsavices-MCFS - - - 1,"]13,284 1,"]13,2&! -
Depruieticn 162,533 65,313 88Q4"]6 444,686 1,562,008 SQ4G3
TOYzlcperetinges.pensu "]45,285 1,682,405 2,363,313 2,"]21,092 "],512,155 3,462,511
OpereLingivmmeQoss) (214,380) 83,831 (54$511) (43Q054) (1,10Q114) (111,011)
Ncncpaetivg revm�u(�.pmsu)�.
Ivvutrnenteemivgs 6,544 5,002 3Q653 13,322 55,59 13,491
Ivtere4onivtafuvddebt - - 13,290 2$0.h0 41,330 -
Ivfzr�ovanmmfel 288 416 6,492 540 "],"]36 1,8"]3
6eiv Qoss)cn Exed esseLdisposel 4,988 (3,000) 1,988
Miscelleneo�s 81,15] 13,920 101,594 19Q611 6,01"]
TOYzlvcncpaetivgrevm�u(�.pmsu) &],989 10,406 61355 143,496 303,PA6 21381
Inecme Qoss)before
ecntrib�ticnsevdhavsfas (1ffi,391) 54,23"] (484,15� (28Q558) (802,868) (8Q630)
Cepifelmvtrib�ticns 154,566 502,349 15$998 81$913
TrensfaW6maelF�vd (45,&!� (91,683) (166,554) (181,611) (485,654) -
Trensfa W Cepifel Pr jectFwd
Tofeltrevsfas (45,&!� (91,683) (16Q554) (181,611) (48$6S4)
Chevgeivvetposition (1"],611) 2,554 (14$361) (30Q1"]1) (4"]2,649) (8Q630)
NeLpositicn-Sen�eryt 5,8ffi,312 91"],953 35,4"]Q366 25,"]6Q48"] 61,993,1"]8 3,13Q340
NeLposition-Duanba3l $ 5,80$"]Ot $ 920,SG'] $ 35,331,005 $ 25,46Q316 $ 61,52Q529 $ 3,04QT0
Chevge iv vetposition reported ebove (4"]2,649)
Adj�strnmLYq retledthe mvsolidetion of ivtanel savice fwd edivities releted W entaprise fuvds (1$54�
Chevgeivvetpositionofb�sivesstypeedivities(pege3� $ (492,154)
42
CITY OF W TTAGE GROVE,NIINNESOTA
STATEMENT OF CASH FLOWS Statv�mt8
PROPRIETARYFUNDS
ForThe Year Evded December3l,2016
B�sivess-TypeActivities-EvtupnseF�vds Govemmevtal
Total Activities-
StreetLight ConageGmve Water Sewer Evterynse Ie�temal
F�vd EMSF�vd Operanvg Operativg F�vds SuviceF�vds
Cash flows Rom operanvg activines:
ReceiptxRomc�sromersand�sux $ 516,509 $ 1,60Q812 $ 1,814,"]4"] $ 2,Z13,592 $ 6,20$660 $ -
ReceiptxRomivtufivdservicespmvided - - - - - 3,2U1,689
ReceiptxRomivmaeme�etuvdsandveimb�rsemevts - - - - - 144,Z11
Paymevtromppliux (486,T5) (25$850) (853,652) Q,889,045) (3,48$262) Q,26$"]00)
Paymevtroemployees (8$020) Q,161,669) (551,U12) Q"]$812) Q,991,513) (2,096,121)
Nliscellaneo�svevev�e 81,15] 13,920 101,594 19Q611 QOt"]
NetnshflowsRomoperanvgarnvines 22,931 1"T1,293 41"],943 3U1,329 92$496 (6,844)
Cash flows Rom vovnpital Crvandvg activines�.
Ie�tugovemmevtalvevev�e 288 416 Q492 540 "],"]36 1,8"]3
Tru�sferso�t (4$846) (91,683) p6Q554) p81,61p (48$694)
Net nsh flows Rom
vovnpitalCrvanmgarnvities (4$558) (91,26]) p6Q062) p81,Ulp (4"T1,958) 1,8"]3
Cash flows Rom npital and relared
eoar�dosarnoltles:
Acq�isitiovofnpitalasse[s - - - - - (61,534)
FroceedsRomrlisposalofnpitalasse[ - 4,989 - - 4,989 -
Ie�tuestpador�debt - - Q9,262) - Q9,262) -
Frivdpalpadovdeb[ (60Q000) (60Q000)
Net nsh flows Rom npital
andvelatedCrvanmgarnvities 4,989 (619,262) (614,Z13) (61,534)
Cash flows Rom ivvestivg arnvities:
Ivvestmevteamivgs Q544 $002 3Q653 13,322 5$521 13,491
Ivtuestovivtufivdloan - - 13,290 2$040 41,330 -
Faymevtveceivedovivtufivdloan 43$000 43$000
NetnshflowsRomivvestivgactivines 6,544 $002 4"]$943 41,362 531,851 13,491
Netivaease(deQease)ivnshandnsheq�ivalevts QQ083) 9Q01"] ll"],562 161,620 365,ll6 (53,014)
Cashandnsheq�ivalevts-San�aryt 1,18$482 962,140 4,466,513 2,80Q650 9,42Q845 2,484,403
Cashandnsheq�ivalevts-December3l $ 1,169,399 $ 1,058,15] $ 4,584,135 $ 2,514,Z10 $ 9,"]8$961 $ 2,431,389
Rewvdlianov of operativg ivwmelQoss)m vet nsh
Rom operativg activities:
OperanvgivwmeQoss) $ (214,380) $ 83,831 $ (54$Stp $ (43Q054) $ p,106,ll4) $ p11,Otp
Adrystmevts m recor�dle operanvg ivcome Qoss)
ro vet nsh flows Rom operanvg arnvities:
Depvedatior� 162,533 65,313 889,4"]6 444,686 1,562,008 59,403
Pevsiov vrzpevse 83] 194,335 53,358 32,902 281,432 -
Nliscellaneo�svevev�e 81,15] - 13,920 101,594 19Q611 QOt"]
Changes iv assets and liabilities:
DeQease(ivaease)ivreceivables Q4,396) Q6$424) 885 Q"],446) Q96,381) (4,241)
DeQease(ivaease)ivprepaditems (299) 3,OU] Q"]2) Q1,029) ($493) Q4,036)
DeQease(ivc ase)iv vevrory - - - - - (20,363)
(DeQease)ivaeaseivpayables "],4"]9 (3,"]69) $98"] 186,616 196,313 "T1,38"]
Total adrystmevts 231,3ll 93,462 963,454 "]31,383 2,031,610 104,16]
NetnshflowsRomoperanvgarnvines $ 22,931 $ 1"T1,293 $ 41"],943 $ 3U1,329 $ 92$496 $ (6,844)
Novnsh ivvesnvg npital and Crvandvg arnvities:
Capitalassetwvtnb�novsRomgovemmevtalarnvities $ 154,566 $ - $ 502,349 $ 15$998 $ 81$913 $ -
Lossovrlisposalofnpitalasset - - 3,000 - 3,000 -
43
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Note 1 SiJMMARY OF SIGNIN'ICAN'I'ACCOUNPING POLICIES
The Ciry of Cottage Grove was incoiporated in 1974 and operates under the Shete of Minnesohe StatuWry Plan A fo�rn
ofgovemment Thegoveming body consists of a five member Ciry Council elected by voters ofthe Ciry.
The financial statements ofthe Ciry of Cottage Grove have been prepared in confo�rniry witli U.S. generally accepted
accounting principles as applied W gove�nmental units by the Govemmental Accounting Standards Board(GASB).
The following is a summazy ofthe significant accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting entiry
includethoseoftheCiryofCodageGrove(theprimazygovemment)andifscomponentunit Thecomponent
unit discussed below is included in the Ciry's reporting entiry because of the significance of its operational
and financial relationship with the Ciry.
COMPONENC il�T
TheEconomic DevelopmentAuthoriry(IDA)is considered a componentunitoftheCiry becausetheCouncil
appoints tliemembers ofthegoveming authoriry and because tlieEDA is in a relationship offinancial benefits
or bwden W tlie Ciry. It is govemed by a board which is made up of hvo Ciry council members and five
otlier members. The IDA provides services W the Ciry and W potential future business owners within the
Ciry. The financial position and results of operations ofthe EDA component unit is discretely presented in
theprimazygovemmenPsbasicfinancialstatements. TheIDAisreportedinaseparatecolumnWemphasize
thatitislegallyseparatefromtheCiry. Thecomponentunitactiviryisreportedonthemodifiedaccrualbasis
ofaccounting. SeparatefinancialshetementsarenotpreparedfortheEDA.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The govemmenbwide financial shetements (i.e,tlie statement of net position and tlie statement of activities)
report info�rnation on all of the activities of the primazy govemment and its component unit For the most
part,theeffectofinterfundactiviryhasbeenremovedfromthesestatements. Governmentolocfivifies,which
no�rnally are supported by taees and intergovemmental revenues,are reported separately from busir�a�s-type
ocfivitles,which rely W a significant extent on fees and charges for support
In the gove�nmenbwide statement of net positioq both the govemmental and business-rype activities
columns:(a)arepresented on a consolidated basis by column; and(b)arereported on a full accrual,economic
resowce basis, which recognizes all long-te�rn assefs and receivables as well as long-term debt and
obligations. The Ciry's net position is reported in three parFs: (1) net investrnent in capital assGs; (2)
restricted netpositioq and(3)unrestricted netpositioa The Ciry firstutilizes restricted resowces W finance
qualdying activities.
The shetement of activities demonstrates the degree W which tlie direct expenses of a given function or
business-rypeactiviryareoffsetbyprograrnrevenues. Direc[vcpensesaretliosethatareclearlyidentifiable
with a specific function or business-rype activiry. Progrmn revenues include 1) charges W cusWmers or
applicants who purohase, use, or direcHy benefit from goods, services, or privileges provided by a given
function or business-rype activiry and 2)grants and contributions that arerestricted W meeting the operational
or capital requirements ofa particular function or business-rype activiry. Taxes and otlier items not included
arnong prograrn revenues are reported instead as ger�rol revenues.
Separate financial shetemenfs are provided for govemmenhel funds and proprietazy funds. Major individual
govemmental funds and major individual enteiprise funds are reported as separate columns in the fund
financial statements.
44
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Q MEASUREMENT N'OCUQ BASIS OF ACCOUNTING,AND N'INANCIAL STATEMENT
PRESENTATION
The gove�nmenbwide financial shetements are reported using the ecorromic resoemces meosemement fceus
and tlie occruol bosir of occounting, as are the proprietazy fund shetemenfs. Revenues are recorded when
eamed and expenses arerecorded when a liabiliry is incmred,regardless ofthe timing ofrelated cash flows.
Properly taees are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibiliry requirements imposed by theprovider have been met
Gove�nmental fund financial statements are reported using the curren[fin�ciol resoemces meosemement
fceus and the moaified occruol bosir of occoemfing. Revenues are recognized as soon as they are both
measwable and available Revenues are considered W be¢vmloble when they are collectible within the
cmrent period or soon enough tliereatter W pay liabilities of the cmrent period. For this pmpose, the
govemment considers all revenues,exceptreimbursementgrants,W be available ifthey are collected within
60 days of the end of the cmrent fiscal period. Reimbwsement grants are considered available if they are
collected within oneyear ofthe end ofthe cmrent fiscal period. Expenditures generally are recorded when
a liabiliry is incmred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related W compensated absences, and claims and judgments, are recorded only when payment
is due.
Properly taees,special assessmenfs,intergovemmental revenues,charges for services and interestassociated
with the emrentfiscal period are all considered W be susceptible W acerual and so have been recognized as
revenues of the emrent fiscal period. Only tlie portion of special assessments receivable due witliin the
emrent fiscal period is considered W be susceptible W acerual as revenue of the emrent period. All other
revenue items are considered W bemeaswable and available only when cash is received by the govemment
The gove�nment reports the following major govemmenhel funds:
TheGer�rol Fur�!is thegovernmenPs primazy operating fund. Itaccounts for all financial resowces of
the general gove�nment,exceptthoserequired W be accounted for in another fund.
The Murucipol Build�g Capitol Projec[ Femd accounts for the accumulation of resowces and
construction or remodeling costs of municipal buildings and facilities.
The�LlSA Consbucfion CapHol Projec[Femd accounts for projuts related W Municipal State Aids.
The Closed Ikb[Fur�!accounts for the accumulation of residual resouroes from debt funds that have
been closed as the associated debthas been satisfied.
The P¢vement M�ogemen[Ikb[Service Fur�!accounts for debt service payments used W finance the
Ciry's various pavement managementprojects. Revenue is accumulated from both special assessments
and property taees.
The P¢vemen[Mor�gemen[ CapHol Projec[ Fur�! accounts for pavement management construction
projecfs.
The gove�nment reports the following major proprietazy funds:
The SYree[Zight Fur�!accounts for cusWmer street light and service charges which are used W fmance
street light operating expenses.
The Cottage Grove S�LlS Fur�!accounts for tlie operation of the Codage Grove arnbulance service that
serves the cities of Cottage Grove,Newport, SaintPaul Park, and Grey Cloud Island.
45
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
The 4Prder Oper�gfur�!accounts for cusWmer water service charges which areused W fmance water
operating expenses.
TheSewer Operrdingfur�!accounts for cusWmer sewer service charges which areused W finance sewer
operating expenses.
Additionally,the govemment reports the following fund rype:
Intemal servicefunds accountfor the Ciry's self-insurance,fleet maintenance, and info�rnation services
provided W otlier departrnents of tlie govemment on a cost reimbwsement basis.
As a general rule, tlie effect of interfund activiry has been eliminated from the gove�nmenbwide financial
statements. Exceptions W this general rule are transactions that would be treated as revenues, expenditures
or expenses if they involved extemal organizations, such as buying goods and services or payments in lieu
of taees, are similarly treated when they involve other funds of the Ciry of Cottage Grove. Elimination of
these charges would disWrt the direct costs and prograrn revenues reported for tlie various functions
concemed.
Amounts reported as progrmn revenues include 1)charges W cusWmers or applicants for goods,services,or
privileges provided, 2) operating grants and contributions,and 3)capital grants and contributions, including
special assessmenfs. Intemally dedicated resowces are reported as generol revenue.r rather tlian as prograrn
revenues. Likewise,general revenues include all taees.
Proprietazy funds distinguish operrding revenues and expenses from non-operafing items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietazy fun8s principal ongoing operations. The principal operating revenues ofthe
water, sewer, ambulance, and street light enteiprise funds are charges W cusWmers for sales and services.
The arnbulance fund operating revenues are net of w�'ite ofTs mandated by various govemment agencies
(including Medicare and Medicaid). Operating expenses for enteiprise funds include tlie cost of sales and
services,administrative expenses,and depreciation on capihel assefs. All revenues and expenses notmeeting
this defmition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resowces are available for an allowable use, it is the govemmenPs
policy W userestricted resowces first,then unrestricted resowces as they areneeded.
D. BUDGETS
BudgGs are adopted on a basis consistentwith U.S. generally accepted accounting principles. Annual
appropriated budgefs are adopted for the General and Spuial Revenue Funds.
Budgeted amounts are reported as originally adopted, and as amended by the Ciry Council. Individual
arnendments were not material in relation W the original appropriations which were adjusted. Budgeted
expenditure appropriations can be ca�ried forward W tlie ne�t budgetyear subjut W Ciry Council approval.
E. LEGAL COMPLIANCE-BUDGETS
The Ciry follows theseprocedwes in esheblishing the budgetazy data reflected in thefinancial shetements:
1. The Ciry AdministraWr submits W the Ciry Council a proposed operating budget for the fiscal year
commencing the following Januazy 1. The operating budget includes proposed expenditures and tlie
means of financing them.
46
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
2. The Ciry Council reviews the proposed budget and makes appropriate changes. Per Statute, public
meetings areheld W receivetaxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmenhel basis and can be
expended by each departrnent based upon detailed budget estimates for individual expenditure accounts.
4. The Ciry AdministraWr is authorized W transfer appropriations witliin any departrnent budget up W
$2,500. Additional interdepartrnental or inte�fund appropriations and deletions are authorized by the
Ciry Council with expenditure reductions,fund(contingency)reserves or additional revenues.The Ciry
Council may authorizetransfers ofbudgeted amounts behveen Ciry funds.
5. Formal budgetazy integration is employed as a management control device dwing the year for tlie
General Fund, Special Revenue Funds,certain Capital ProjectFunds,Enteiprise Funds and tlieIntemal
Service Fund. The General Fund and Spuial Revenue Funds are the only funds with legally adopted
annual budgGs.
6. Legal debt obligation indentures dete�rnine the appropriation level and debt service tae levies for the
Debt Service Funds. Supplementazy budgGs are adopted for tlie Propriehery Funds W determine and
calculate user charges. These are notreflected in thefinancial shetements.
7. A capital improvement prograrn is reviewed annually by the Ciry Council for the Capihel Project Funds.
However, appropriations for major projects are not adopted until tlie ach�al bid award of the
improvement The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations atthe Wtal fund IeveL The legal level of
budgetazy control is at tlie expenditure category level (i.e,personal services, commodities, contractual
services and capihel outlay) within each activiry. All arnounfs over budget have been approved by the
Ciry Council through the disbwsement approval process.
The following is a listing of expenditure categories that exceed budget appropriations for non-major funds:
FinalBudeet Actual OverBudeet
Nonmajor Funds:
Special Revenue Funds:
Ruycling:
Public works:
Personnel services $32,700 $ 33,534 $ 834
SW�rn Water Maintenance:
Public works:
Personnelservices 255,600 29Q223 34,623
ForFeiture/Seizure:
Public works:
Commodities 4,500 6,613 2,113
Contractualservices 14,620 21,87A 7,2M
Capital outlay 15,000 27,506 12,506
IceArena:
Culture and rureatio¢
Commodities 31,200 33,279 2,079
Contractual services 322,750 367,098 44,348
Go1f Cowse:
Culture and rureatio¢
Personnelservices 781,000 952,766 171,766
Contractualservices 479,980 49Q650 1Q670
47
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
F. CASHANDINVESTMENTS
Cash and investrnent balances from all funds are pooled and invested W the e�tent available in authorized
investrnents. Famings from investrnenfs are allocated W individual funds on thebasis ofthefund's equiry in
thecash andinvestrnentpool.
The Ciry provides temporary advances W funds thathave insufficient cash balances by means of an advance
from another fund shown as inte�fund receivables in the advancing fund,and an interfund payable in the fund
with the deficit,until adequateresowces are received.
Investrnents are stated atfair value, based upon quoted market prices as of the balance sheet date. Certain
investrnents for tlie Ciry are reported at fair value as disclosed in Note 3. The Ciry categorizes its fair value
measwements with the fair value hierarchy established by generally accepted accounting principles. The
hierarchy is based on the valuation inputs used W measure the fair value of tlie asset Level 1 inputs are
quoted prices in active markets for identical assGs; Level 2 inpufs are significant other observable inputs;
Leve13 aresignificantunobservableinputs.
For pmposes ofthe statement of cash flows for tlie proprietazy funds, cash equivalents are considered W be
all highly liquid investrnents with a maturiry of three months or less when pwchased. All of the cash and
investrnents allocated W the proprietazy funds have original maturities of 90 days or less. Therefore, the
entirebalances in such funds are considered cash equivalents.
G. RECEIVABLES AND PAYABLES
Dwing tlie cowse of operations,numerous transactions occur behveen individual funds for goods provided
or services rendered. Short-te�m inte�fund loans are classified as"inte�fund rueivables/payablesl'All short-
te�m interfund rueivables and payables atDecember 31, 2015 are planned W be eliminated in 2016. Long-
te�m interfund loans areclassified as"intedund loan rueivable/payable" Any residual balances outshending
behveen the govemmental activities and business-rype activities are reported in the govemmenbwide
financial statements as"intemal balances."
Properly taxes, special assessments, and ambulance receivables have been reported net of estimated
uncollutible accounts. (see Note 1 H, I and L) Buause utiliry bills are considered liens on property, no
estimateduncollectiblearnountsareestablished. Uncollectiblearnountsarenotmaterialforotlierreceivables
and have not been reported.
H. PROPERTY TAX REVENUE RECOGNITION
The Ciry Council annually adopfs atae levy and certities it W the Counry in December Qevy/assessmentdate)
of each year for collection in the following year. The Counry is responsible for billing and collecting all
properly hexes for itself,the Ciry,the local school district and other hexing authorities. Such taees become a
lien on Januazy 1 and are ruorded as receivables by the Ciry at that date. Real property taxes are payable
(by property owners)on May 15 and OcWber 15 of each calendaryear. Personal property taees are payable
by taepayers on Februazy 28 and June 30 of each year. These hexes are collected by the Counry and remitted
W tlie Ciry on or before July 7 and December 2 of the sameyear. Delinquent collections for November and
December are received tliefollowing Januazy. The Ciry has no abiliry W enforoepayment ofproperty taees
by property owners;the Counry possesses this authoriry.
GOVERNMENT-WIDEFINANCIAL STATEMEN'CS
TheCiryrecognizesproperlytaerevenueintheperiodforwhichthetaeeswerelevied. Uncollectible
properly hexes are not material and have not been reported.
48
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
GOVERNMENTAL FUND FINANCIAL STATEMEN'CS
The Ciry recognizes property tae revenue when it becomes both measwable and available W fmance
expenditures of tlie emrent period. In practice, emrent and delinquent taees rueived by the Ciry in July,
December and January are recognized as revenue for tlie emrent year. Taxes collected by the Counry by
December 31 (remitted W tlie Ciry the following Januazy) and taees and credifs not received at year-end are
classified as delinquentand due from Counry taees receivable. Theportion ofdelinquenttaees not collected
by the Ciry inJanuazy is fully offsetby defe�red inflows ofresowces becausethey arenotavailable W finance
emrent expenditures.
I. SPECIALASSESSMENTREVEN[JERECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible by
the Ciry over a te�rn ofyears usually consistentwith the te�rn oftherelated bond issue. Collection of annual
installments (including interest) is handled by the Counry AudiWr in tlie same manner as property taees.
Properly owners are allowed W (and often do) prepay future installments without interest or prepayment
penalties.
Once a special assessment roll is adopted,the arnount attributed W each paroel is a lien upon that property
until full payment is made or tlie arnount is detem�ined W be excessive by the Ciry Council or court action.
If special assessments are allowed W go delinquent, the property is subject W hex forFeit sale Proceeds of
sales from tae forFeited properties are allocated first W the Counry's costs of administering all tae forFeit
properties. Pwsuant W State Statutes, a property shall be subject W a hex forFeit sale atter tliree years unless
it is homesteaded, agricultural or seasonal recreational land in which event the property is subject W such
sale affer fiveyears.
GOVERNMENT-WIDEFINANCIAL STATEMEN'CS
The Ciry recognizes special assessment revenue in the period tliat the assessment roll was adopted by the
CiryCouncil. Uncollectiblespecialassessmentsarenotmaterialandhavenotbeenreported.
GOVERNMENTAL FUND FINANCIAL STATEMEN'CS
Revenue from special assessments is recognized by the Ciry when it becomes measurable and available W
finance expendih�res of the emrent fiscal period. In practice, emrent and delinquent special assessments
received by tlie Ciry are recognized as revenue for the emrentyear. Special assessments that are collected
by the Counry by December 31 (remitted W the Ciry the following Januazy) are also recognized as revenue
for the emrent year. All remaining delinquent, defe�red and special defe�red assessmenfs receivable in
govemmental funds are completely offsetby defe�red inflows ofresowces.
J. INVENTORIES
InvenWries are stated at cost, which approximates market, using tlie firsbiq firsbout(FIFO) method and
consist of items for resale, expendable supplies, and vehicle repair parls. The cost of such invenWries is
recorded as expenditures/expenses when consumed rather tlian when purohased in botli govemmenbwide
and fund financial shetements.
K. PREPAID ITEMS
Certain paymenfs W vendors reflectcosts applicable W future accounting periods and arerecorded as prepaid
items in both gove�nmenbwide and fund financial statements. The cost of prepaid items are recorded as
expenditures/expenses when consumed ratlier than when pwchased.
49
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
L. ALLOWANCEFORUNCOLLECTIBLE
The Ciry dirutly bills individuals for ambulance services. The Ciry reserves an arnount as uncollectible
based on hisWrical collection rates. The arnounts of the estimated uncollectible ambulance billings W
individuals as of December 31, 2016 were$32$200.
M. PROPERTIES HELD FOR RESALE
PropertyisacquiredbytheCiryforredevelopmentpmposesandsubsequentresale Propertiesheldforresale
is reported as an asset at the lower of cost or estimated fair value. Fair value estimates have been based on
estimated realizable sales proceeds net of selling expenses.
N. CAPITALASSETS
Capital assGs, which include properly, plant, equipment and infrasWcture assefs (eg., roads, bridges,
sidewalks,and similar items),arereported inthe applicablegove�nmental orbusiness-rypeactivities columns
in the govemmenbwide financial shetemenfs. Infrastructure assGs have been capitalized retroactively W
1980. Capihel assefs are defined by the govemment as assGs with an initial, individual cost of more than
$5,000(arnountnotrounded) and an estimated useful life in excess of oneyear. Such assGs are recorded at
hisWrical cost or estimated hisWrical costifpwchased or constructed. Donated capital assefs arerecorded at
estimated fair market value atthe date of donatioa The cosfs ofno�rnal maintenance and repair which do not
add W the value of the asset or materially extend assGs lives are not capitalized.
Major ouHays for capihel assGs and improvemenfs are capitalized as projects are constructed. Interest
incmred dwing the construction phase of capital assets of business-rype activities is included as part of tlie
capihelizedvalueoftheassGsconstructed. FortheyearendedDecember31,2016,nointerestwascapitalized
in connection witli construction in progress.
Capital assGs not being depreciated include land, easements and construction in progress. Properly, plant
and equipment of the primazy govemment, as well as the component units, is depreciated using the straighb
line metliod over the following estimated useful lives:
Assets Years
Buildings and improvemen[s 20-50
Fquipment and fw'niture 3-10
Machinery and equipment 5-20
Other improvements 5-20
Streets 50
SW�rnsewers 50
Sidewalks 50
Trails 20
Streetlights 50
W ater and sewer lines 50
Capital assGs of tlie water and sewer utiliry operations include tlie water distribution system and sewage
collection system. These systems have been wholly (or substantially) financed by non-operating funds
(special assessments,general taees,federal and state grants, and other souroes)and contributed W tlie sewer
and water operating funds. Ciry policy is W fmancethese assGs by the souroes indicated rather tlian by user
charges. Accordingly, the water and sewer user rates are not established at levels sufficient W cover
depruiation on these assets.
50
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
O. DEFERREDOUTFLOWSANDINFIAWSOFRESOURCES
In addition W liabilities, the statement of financial position and Fund Financial statements will sometimes
report a separate section for defe�red inflows of resouroes. This separate financial statement element
represenfs an acquisition ofnetposition tliat applies W a futureperiod(s) and so will notbe ruognized as an
inflow of resowces (revenue) until that time. The Ciry presents defe�red inflows of resowces on the
Gove�nmental Fund Balance Sheet as unavailable revenues. These arnounts are defe�red and recognized as
an inflow of resowces in the period thatthe amounts become available The Ciry presents defe�red inflows
ofresowces on the Statement ofNetPosition for amounts related W Pensions.
In addition W assGs,the statement of financial position will sometimes report a separate section for defe�red
outtlows of resowces. This separate financial statement element represenfs a consumption of net position
that applies W future period(s)and so will notbe recognized as an outflow ofresowces(expenselexpenditure)
until that time The Ciry presents defe�red outflows of resowces on the Statements of Net Position for
arnounts related W pensions.
H COMPENSATEDABSENCES
It is the Ciry's policy W pe�mit employees W accumulate eamed but unused annual leave benefits. Under the
Ciry's personnel policies and collective bargaining agreemenfs, ciry employees are granted annual leave
benefits in varying arnounts based on lengtli of service Annual Leave accmals vary from 18 W 26 days per
year.
As benefifs accrue W employees,the accumulated leave arnounts are reported as an expense and liabiliry in
the proprietazy fund financial shetements. A liabiliry for these arnounts is reported in govemmental funds
only ifthey have matured,for exarnple, as a result of employee resignations and retirements. In accordance
with the provisions of GASB 16,Accormting for Compensrded Absences, no liabiliry is recorded for non-
vesting accumulating rights W receive accumulated leavebenefifs. However,a liabiliry is recognized for tliat
portion of accumulating leavebenefits that is vested as severance pay.
Q. LONGTERM OBLIGATIONS
In the govemmenbwide financial statemenfs and proprietazy fund rypes in the fund financial shetemenfs,
long-te�rn debt and other long-term obligations are reported as liabilities in the applicable gove�nmental
activities, business-rype activities, or propriehery fund rype statement of net positioa Bond premiums are
defe�red and arnortized over the life of tlie bonds.
In the fund financial statements, govemmental fund rypes recognize bond premiums during the cmrent
period. The face arnount of debt issued is reported as otlier fmancing sowces. Remiums received on debt
issuances are reported as other financing sowces. Issuance cosfs whether or not withheld from the ach�al
debt proceeds received,are reported as debt service expenditures.
R. PENSION
For pmposes of ineaswing the net pension liabiliry, defe�red outtlows/inflows of resouroes, and pension
expense, info�rnation about the fiduciary net position of the Public Employees Retirement Association
(PERA)and additions W/deductions from PERA's fiduciazy net position have been determined on the sarne
basis as tliey are reported by PERA except that PERA's fiscal year end is June 30. For this pmpose,plan
contributions are recognized as of employer payroll paid dates and benefit payments and refunds are
recognized when due and payable in accordance with the benefit te�ms. Investrnents are reported at fair
value.
51
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
S. FUND BALANCE
In the fund financial statements, govemmental funds report fund balances in class�catio�s that disclose
constraints for which arnounts in thosefunds can be spent These classifications are as follows:
Nonspendoble—Amounts that cannot be spent because they are not in spendable fo�rn,such as prepaid items
and invenWry.
Resbacted — Amounts related W extemally imposed constraints established by crediWrs, granWrs or
contribuWrs; or constraints imposed by state statuWry provisions.
Committed— Amounts constrained for specific pmposes tliat are intemally imposed by fo�rnal action
(resolution)oftlieCiryCounciL CommittedamountscannotbeusedforarryotherpmposeunlesstheCouncil
modifies or rescinds the commitrnentby resolution.
Assigr�d—Amountsconstrainedforspecificpmposesthatareintemallyimposed. TheCouncilhasadopted
a fund balance policy which delegates the authoriry W assign fund balances W the Ciry AdministraWr and/or
FinanceDiruWr.
Unarsigned—The residual classification for the General fund and also negative residual amounts in other
funds.
The Ciry considers restricted amounts W be spent first when botli restricted and unrestricted fund balance is
available Additionally,the Ciry would firstuse committed,then assigned,and lastly unassigned amounts of
unrestricted fund balance when expenditures are made.
The Ciry fo�rnally adopted a fund balance policy for tlie General Fund.The policy esheblishes an unassigned
fund balance range of no less than 55%of the subsequentyear's budgeted expendih�res W provide sufficient
working capital and margin of safery W address local emergencies withoutbo�rowing.
T. NET POSITION
Net position represents the difference behveen assGs and defe�red outflows of resowces and liabilities and
defe�red inflows ofresowces in the govemmenbwide financial statements. Net investrnent in capital assets
consists of capital assGs,net of accumulated depreciatioq reduced by the outstanding balance of any long-
te�rndebtusedWbuildoracquirethecapitalassets. Netpositionisreportedasrestrictedinthegovemmenb
wide financial statement when there are limitations on usethrough e�ternal restrictions imposed by crediWrs,
granWrs or laws or regulations of otlier governments.
U. INTERFUND TRANSACTIONS
Inte�fund services provided and used are accounted for as revenues, expenditures or expenses. Transactions
that constitute reimbursements W a fund for expenditures/expenses initially made from it are properly
applicable W another fund, are recorded as expenditures/expenses in thereimbwsing fund and as reductions
of expendih�res/expenses in the fund tliat is reimbwsed. Inte�fund loans are reported as an inte�fund loan
receivable or payable which offsGs tlie movement of cash behveen funds. All other inte�fund transactions
are reported as transfers.
V. USE OF ESTIMATES
The preparation of financial statements in accordance with U.S. generally accepted accounting principles
(GAAP)requires management W make estimates that affect the amounts reported in the financial statements
during the reporting period. Actual resulfs could differ from such estimates.
52
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
W. COMPARATIVEDATA
Summarized comparative data for the prior year has been presented only for certain sutions of the
accomparrying financial statements in order W provide an understanding of tlie changes in the Ciry's financial
positionandoperations. CertainreclassificationshavebeenmadeWprioryeardataWconfo�rnWthecmrent
year presentatioa The rulassifications had no effut on the change in net position or Wtal net position as
previously reported.
Note2 RECONCILIATION OF GOVERNMENP-WIDE AND F[JND FINANCIAL STATEMENPS
A. EXPLANATIONOFCERTAINDIFFERENCESBETWEENTHEGOVERNMENTALFUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
The govemmenhel fund balance sheet includes a reconciliation behveen femd bol�ce — [otol
governmentol femds and r�[po.rition —governmentol ocfivitles as reported in the govemmenbwide
shetement of net positioa One element of that reconciliation explains that "long-term liabilities,
including bonds payable, are not due and payable in the cmrent period and therefore are not reported in
tlie funds." The details of this $(SQ675,002)difference are as follows:
Bonds payable $(26,66Q000)
Accrued interestpayable (256,21�
Compensatedabsencespayable (82Q914)
Otherpostemploymentbenefits (7Q331)
Netpension liabiliry (21,553,143)
Unamortizedpremiumonbonds (776,17A)
Net adjustrnent W reduce fund balance-Whel
govemmenhel funds W a�rive at net position-
govemmenhel activities $(50,136,728)
B. EXPLANATIONOFCERTAINDIFFERENCESBETWEENTHEGOVERND�IENTALFUND
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT-WIDE STATEMENT OFACTIVITIES
The gove�nmental fund shetement of revenues, expenditures, and changes in fund balances includes a
reconciliation behveen r�[chrmges �fur�!bolmaes—[otol governmentol fur¢!s and chm�ges � r�[
posifion ofgovernmentol ocfivifies as reported in the govemmenbwide statement of activities. One
element of that reconciliation explains that"govemmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assGs is allocated over their estimated useful
lives and reported as depreciation expense." The details oftliis$9,443,674 difference are as follows:
Capital outlay $ 13,96{,549
Depruiation expense (4,520,875)
Net adjustrnent W increase net changes in fund
balances-Wtal governmenhel funds W a�rive at
changesinnetpositionofgove�nmenhelactivities $9,443,674
53
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Another element of that reconciliation states tliat"revenues in the shetement of activities that do not
provide cmrent financial resowces are not reported as revenues in the funds." The deheils of this
$1,621,870 difference are as follows:
General properly hexes:
AtDuember31, 2015 $ (126,473)
At Duember 31, 2016 125,927
Special assessments:
AtDecember 31, 2015 (5,993,11/�
At Duember 31, 2016 7,615,533
Intergovemmental:
At Duember 31, 2015 (139,443)
At Duember 31, 2016 139,443
Net adjustrnents W increase net changes in fund balances-
Whel gove�nmental funds W a�rive at changes in net
position ofgovernmenhel activities $ 1,621,870
Another element of that reconciliation states that"the issuance of long-term debt(eg., bonds, leases)
provides cmrent financial resowces W gove�nmental funds, while the repayment of the long-te�rn debt
consumes the cmrentfinancial resowces ofgovemmental funds." Neithertransactioq however,has any
effectonnetpositioa Thedetailsofthis$(2,32Q457)differenceareasfollows:
Debt issued:
Issuance ofgeneral obligation bonds $($935,000)
Plus premium on debt issued (357,684)
Principal repayments:
General obligation debt 6,57Q000
Capital leases 327,432
Amortization of defe�red premiums 74,795
Net adjustrnents W increase net changes in
fund balances-Wtal gove�nmental funds
W a�rive at changes in net position of
govemmenhel activities $(2,32Q45/�
54
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Another element of that reconciliation shetes that"some expenses reported in the shetement of activities
do not require the use of cmrent financial resouroes and therefore are not reported as expendih�res in
gove�nmental funds." The details ofthis$58,0J4 difference are as follows:
Compensated absences:
AtDuember31,2015 $ 812,746
AtDuember31,2016 (82Q914)
Accruedinterest
AtDuember31,2015 379,500
AtDuember31,2016 (256,21�
Other posbemployment benefits
AtDecember31,2015 63,309
AtDuember31,2016 (7Q331)
Net adjustrnent W increase net changes in fund
balances-Wtal govemmental funds W a�rive at
changes in net position of govemmental
activities $ 58.0J4
Note3 DEPOSITSANDINVESTMENTS
A. DEPOSITS
The Ciry maintains a cash and investrnentpool that is available for use by all funds.Fach fund rype's portion
oftliis pool is displayed on the statement ofnetposition and balance sheets as"Cash and Investrnenfs."
CusW dial Credit Risk—CusW dial credit risk for deposits is the risk that in the event of a bank failwe,the
CirywillnotbeableWrecoveritsdeposifs. NeitliertheCirynortheCottageGroveEconomicDevelopment
Authoriry, a discretely presented component unit, has a deposit policy for cusWdial credit risk—deposifs
beyond the requirements of state shetutes. As of December 31, 2016 all of the deposits were inswed or
collateralized by secwities held by the Ciry or ifs agent in the Ciry's name
In accordance with Minnesota Statutes, the Ciry mainheins deposits at financial institutions which are
autliorized by the Ciry Council.Minnesota Statutes requirethat all deposifs beprotected by inswance,surery
bond, or collateraL The marketvalue of collateral pledged must equa1110%of the deposits not covered by
insurance or coiporate swery bonds. Authorized collateral include: U.S.govemment treasury bills,notes,or
bonds; issues of a U.S. govemment agency; general obligations of a state or local govemment rated"A" or
better;revenue obligations of a shete or local govemment rated"AA" or better; i�revocable standby letter of
credit issued by a Federal Home Loan Bank; and time deposits inswed by a federal agency. Minnesohe
statutes require suurities pledged as collateral be held in safekeeping in a restricted account at the Federal
Reserve Bank or at an account at a trust departrnent of a commeroial bank or other financial institution not
owned or controlled by the deposiWry.
55
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
B. INVESTMENTS
Minnesota Shetutes and tlie Ciry's investrnent policy authorize the Ciry W invest in the following:
a) Directobligations or obligations guaranteed by tlieUnited States or ifs agencies,its instrumenhelities
or organizations created by an act of congress, excluding mortgag�backed secwities defined as
high risk.
b) General Obligations ofthe State ofMinnesota or any of its municipalities as follow:
1) general obligation of arry state or local govemment with taxing powers which is rated"A"
or better by a national bond rating service;
2) revenue obligation of arry state or local govemment with taeing powers which is rated
"AA"or better by a national bond rating service; and
3) general obligation of the Minnesota Housing Finance Agency rated "A" or better by a
nationalbondrating agency.
c) BankersaccephenceofUnitedStatesbankseligibleforpwchasebytheFederalReserveSystem.
d) Commeroial paper of the highest qualiry(Al,Pl), and maturing in 270 days or less.
e) Repurohase agreements from national or state banks that are members of the Federal Reserve
System with capihelization exceeding$1QOOQ000; a primazy reporting dealer in U.S. gove�nment
securities W the Federal Reserve Bank ofNew York.
� Certiticates of Deposit collateralized by FDIC or FSLIC inswance Deposits exceeding $25Q000
inswance shall be covered by a swery bond or collateralized with U.S.Treasury or agency secwities
computed at market value which shall be at least 10%more than the arnount of each deposit in
excess ofthe inswed portions. All collateral shall be assigned W the Ciry from the deposiWry.
g) Shares ofmutual funds holdings pwsuant W M.S. 118A.04. The Ciry participates in the Minnesota
Municipal Money MarketFund(4M Fund)whereby,the fair marketvalue oftheposition in the pool
is the sarne as the value of tlie pool shares owned.
Interes[rote rirk-Interestrate risk is the risk that changes in interest rates will adversely affect the fair value
of an investrnent The Ciry's fo�rnal investrnentpolicy limits investrnent maturities as a means ofmanaging
ifs exposwe W fair value losses arising from increasing interest rates. The policy also states that no more
than 25%of Wtal investrnents should e�tmd beyond five years and in no circumstance should arry extend
beyond ten years.
TotalFaic Inves[mentmaNritiesivYears IXeAtRisk
Ivves[mentlype MacketVal�e Lessthanl 1-5 MoreNanS Rztivg Agency
U.S.Agenaes
FedecalHomeLoanBank-FE3LB $6,020,29] - $5,023,3]8 $996y19 AA/Aaa S&P/Moody's
FannieMao-FNMA 6,ll1,310 1,]51,815 2y91,800 1,42],695 AA/Aaa S&P/Moody's
FYeddieMao-FE3LMC S,ll8y10 1,002,190 5,]21,265 1,455,455 AA/Aaa S&P/Moody's
Fedecal Fartn IXeAtBank 2y89,810 1,001,]]0 1,500,365 48],6]5 AA/Aaa S&P/Moody's
M�niapalObligafions 4,841,434 100,399 3,645,385 1,095,650 AA/Aa S&P/Moody's
NegotiableCD's 15,063,920 12130605 269554] 23]]68 NR N/A
Totallnvestrnevls 43,265,681 $15y86,]]9 $21,5]],]40 $5,]01,162
MoveyMarkels 3,833y8]
Deposils 885,152
Petty Gsh and Change 13 060
Tota1 Gsh andlnvestrnenls $4]y9],880
NRivAcates`fiotcate6'
N/A ivAcates`fiot applicable
56
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Cus[oa4ol Creai[Rirk—For an investrnent, cusWdial credit risk is the risk that, in tlie event offailwe ofthe
deposiWry financial institutioq the Ciry will not be able W recover the value of its investrnent or collateral secwities
that are in the possession of an outside parry. The Ciry has no cusWdial credit risk for its investrnents since all the
Ciry's investrnents held in safekeeping by U.S.Trust in the Ciry's narne are inswed and registered.
Creai[Rirk—Credit risk is the risk tliat an issuer or other counteiparry W an investrnent will not fulfill its
obligations. As indicated previously,Minnesohe stah�te requires Commercial paper W be of tlie highest qualiry (Al,
Pl)and rrwnicipal general obligations need an"A"rating or better.
Concenbotion of Creai[Risk—The Ciry's investrnent policy places no limit on tlie arnount tliat may be
invested in arry one issuer. Thefollowing is a list of investrnents by issuer which individually comprise more than 5
peroent of the Ciry's Wtal investrnents:
Credit
1�pe Amount Percent
FederalHomeLoanBank-FHI,B $6,02Q797 14%
Fannie Mae-FNMA 6,171,310 14%
Freddie Mac-FH[,MC $17$910 19%
Federal Fam�CreditBank 2,989,810 7%
The Ciry has the following recmring fair value measwements as of December 31,2016:
• $43,265,681of$43,265,681 are valued using a matrix pricing model(Level 2 inputs).
Note4 RECEIVABLES
Gove�nmental funds report defe�red inflows of resowces in connection with receivables for revenues that are not
considered W beavailableW liquidateliabilities oftliecmrentperiod. Attheend oftliecmrentfiscalyear,thevarious
components of defe�red inflows and uneamed revenue reported in the govemmental funds were as follows:
Property Special Inter Miscellaneous
Taxes Assessments govemmental Revenue Total
Primary govemment
Major funds:
General Fund $ 112,653 $ 7,327 $ - $ - $119,980
MunicipalBuildingCapihelRojutFund 4,420 - - 1,426 5,846
MSAConsWctionCapihelProjutFund - 655,649 87,417 - 743,066
ClosedDebtFund 1,277 121,610 - - 122,887
Pavement Management Debt Service
Fund 4,813 4,627,749 - - 4,632,562
PavementManageCapihelRojutFund - - 52,026 - 52,026
Nonmajorfunds 2,764 2,203,198 2,205,962
Total primazy govemment 125 927 7 615 533 139 443 1 426 7 882 329
Componentunit
EconomicDevelopmentAutlioriry 1,073 1,073
Total reporting entiry $127,000 $ 7,615,533 $ 139,443 $ 1,426 $ 7,883,472
57
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
NoteS CAPITALASSETS
Capital asset activiry for theyear ended December 31,2016 was as follows:
Beginning Ending
Balance Ivcreases Decreases Balance
Primm�y Government
(3ovemmevtal activities:
Gpital assels,votbavg depceciated
Lavd $ lly2],]8] - - $ 1],92],]8]
Pertnanevteasements 1,15],202 - - 1,15],202
Constr�c[ionivprogcess 500898 15y4Q099 (],201,891) 9248106
Total capital assels,votbavg depcuiated 19 585 88] 15y4Q099 (],201,891) 28 333 095
Gpitel assels,bavg deErcuiated:
BuilAvgsandimprovements 36,021,160 - - 36,021,160
EquipruentavdfumiNre 1J35,121 19,889 (108,8]3) 1,246,13]
Machiveryandequipment 11J02,]84 ]9],635 (226,180) 11,8]4,239
ONerimprovements 6285T32 1,630,183 - ]y15,415
InfrastrucNre:
Streeta 9],65],]02 2,512,3]2 - 100,ll0,0]4
Stortn sewers 19,125,183 190,89] - 29,416,080
Sidewalks/trails 5�58,038 210y13 5,568y51
Totalcapitalasselsbeivgdepcuiated 18],085,220 5461889 (335,053) 192212056
Less accum�lated deErcuiatiov for:
BuilAvgsandimprovements 15,130,805 803,403 - 15y34,208
EquipruentavdfumiNre 1,020�81 63,351 (81,890) 1,002,042
Machiveryandequipment 6,635265 ]68,531 (216,699) ],18],09]
ONerimprovements 3252�01 2]3,323 - 3,525,824
InfrastrucNre:
Streeta 21,]64,619 ly6],129 - 23,]31,]48
Stortnsewers ],158,659 588,305 - ],]46y64
Sidewalks/trails 1 030 040 11623] 1 1462]]
Totalaccumiilateddepcuiatiov SSy92,4]0 45802]9 (298,589) 602]4160
Total capital assels,bavg deErcuiated,vet 131 092]50 881 610 (36,464) 131 y3],896
(3ovemmevtalactivitiescapitalassels,vet $ 15Q6]8,63] $16,83Q]09 $ (],238,355) $ 16Q2]Oy91
58
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Beginning Ending
Primm�yGovernment Balance Ivcreases Decreases Balance
B�9vess-lypeactivities:
Capital assels,votbavg depceQated
Land $ 325,000 $ - $ - $ 325,000
Conshuctiov iv prog�ess
Total capital assels,vot beivg depceQated 325 000 325 000
Capital assels,beivg depcuiated:
Landimpcwemenls 39,803 - - 39,803
BuilAvgsandimprovemevls 4,101,]13 - (12,000) 4,089,]13
Machiveryandequipment 2,233,395 - (12],6]]) 2,105,]18
O[hecimprovemevls 6y91,533 154,566 - ],146,099
Waterandsewerlives 64y12,519 66134] 65�]3,866
Totalcapitalassels,bavgdepcuiated ]8,2]Sy63 S15y13 (13Q6]� ]Sy55,199
Less accumiilated depcuiatiov for:
Landimpcwemenls 9,155 ]94 - 10,]45
sw�mo,s�asa,�rn��� z,zsv,ova iia,ass �v,000� z,ava�sz
Machiveryandequipment 1,61],552 104,088 (12],6]]) 1�93y62
O[hecimprovemevls 2,412,5]1 155,643 - 2�68214
Waterandsewerlives 1]362229 1,186y95 18�4Q226
Totalaccumiilateddepceciation 23]9139] 1�62,008 (136,6]� 25,216,]29
Totalcapitalasselsbavgdepceciated-vet 5448]566 (]46,095) (3,000) 53]384]0
B�sivessiypeactivifiescapitalassels-vet $54812566 $ (]46,095) $ (3,000) $540634]0
Depreciation expensewas charged W function/programs oftheprimazy govemmentas follows:
6wemmental activities:
(3everal govemmevt $ ll1T32
Commwiry development 5,]ll
Public safety 631,080
Publicwocks 2y60,515
GilNre and cecceafion ]52�31
Total depcuiatiov expensegovemmental activities $ 4�20,8]5
B�sivess-type activities:
Sheetlighls $ 162�33
Cottage(3rove EMS 65,313
Water opecativg 889,4]6
Sewer operativg 444 686
Totaldepcuiatiovexpensebeforetransfer $ 1,562,008
59
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
NOTE 6 LONGTERM DEBT
A. GENERALOBLIGATIONDEBT
The Ciry issues general obligation bonds W provide funds for the acquisition and construction ofmajor capital
improvements. The Ciry issues special assessmentbonds W finance various improvemenfs and will berepaid
primarilyfromspecialassessmentsleviedonthepropertiesbenefitingfromtheimprovements. Thereporting
entiry's long-te�rn debt is segregated behveen the arnounts W be repaid from govemmental activities and
amounfs W be repaid from business-rype activities. As of December 31, 2016,tlie gove�nmental long-term
debt of tlie financial reporting entiry consisted of the following:
Final
Werest Isme Matwity Ori�nal Payable
Rate Date Date Isme 12f312016
Rimvy govemment
GOVERNMENTAL ACTNITIES
General Obligation T�Incremerd Bonds:
QOTaelncvemmtBondsof2004A 3.0-4.65% �/1/2004 2/1/2024 $ 1,405,000 $ 1,025,000
QOTaelnevemmtRelwdivgBovdsof2014A 2.0-2.50% 5/29/2014 2/1/2021 1405000 1060000
Total(3emvalO6ligatiovTaelnevemevtBovds 2,810,000 2,085,000
QORelwdivgBondsof2016A 2.03.00% 1/28/2016 2/1/202� 4660000 4660000
Special Assessmmt Bonds with Gwaxunent Colmnitrnerd:
QOlmpvwemevtBovdsof2009A 2.5-43% 4/16/2009 2/1/2024 3,650,000 1y40,000
QOlmpvwemevtBovdsof2012A 30-22% 3/13/2012 2/1/202� 1,865,000 1,3855,000
QOlmpvwemevtBovdsof2013A 3.0%3.5% 9/]b/2013 2/1/2029 ��45,000 6,615,000
QOlmpvwemevtBovdsof2015A 2.5%3.0% 5/Y]/2015 2/1/2031 5,�00,000 5,�10,000
ao�p�o�emeoesooa�orzoies zsia.oi smnois znno3i az�s,000 az�soao
Total Special Assessmmt Bonds 22,835,000 19y15,000
Bondpvemium �')611A
Total awemmerdal Actirities Bovds 30�05,000 2�,436,124
Othapostanploymevtbevefit� . n,�g
Compevsated absevms payable 8]5 50]
TotalCiryivdebtedness-gwaxunevtalacti4ities 30�05,000 28384519
BUSINESS TYPE ACTNITIES
Othapostanploymentbenefits - 1Q615
Compevsated absevms payable �5 101
Total City indebtedness-business type activities 85 946
TotalCiryivdebtedness-primazygwemmmt $ 30�05,000 $ 1%4�1265
Cmnpoverd Urit EDA:
Othapostanploymentbenefits - 911
Compevsated absevms payable �336
Totalivdebtedness-emnpoverdurrit g g g�,q�
60
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Annual debt service requiremenfs W mah�riry for general obligation bonds are as follows:
TaeIvcremevtBonds SpecialAssessmentBovds
YearEvdivg (3ovemmevtalActivities (3ovemmentalAc[ivifies
December3l Privapal Interes[ Hivapal Interes[
20ll 225,000 66,520 1,115,000 513,628
2018 240,000 61,030 1�1.80,000 504,]15
2019 260,000 55,190 1,440,000 466,419
2020 2]5,000 48,820 1,465,000 425,44]
2021 265,000 41,540 1,490,000 383,463
��� 255,000 31,8]2 1�15,000 340,325
2023 2]5,000 19,810 1�60,000 195,]50
2024 190,000 6,]43 1,580,000 249,823
2025 - - 1J50,000 208,395
2026 - - 1J80,000 ll2,230
��� - - 1J30,000 136,469
��8 - - 1,280,000 99y]3
�� - - 1,315,000 61y86
2030 - - �10,000 34,153
2031 - - 685,000 ll�1.10
2032 - - 300,000 5,6]0
2033 120 000 1260
Total $ 2085000 $ 331525 $ 19y15,000 $ 3y16y16
G.O.RefunAn,G Bonds
YearEvdivg (3ovemmevtelActivities
December3l Privapal Interes[
20ll 5]5,000 119,]]5
2018 595,000 102,225
2019 610,000 84,150
2020 330,000 ]0,050
2021 340,000 60,000
2022 350,000 49,650
2023 355,000 39,0]5
2024 365,000 28,2]5
2025 3]5,000 19,050
2026 380,000 11,500
202] 385,000 3,850
Total $ q 660 000 $ SSJ 600
It is not practicable W detem�ine the spec�c year for payment of long-te�rn accrued compensated absences.
61
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
B. CHANGES IN IANGTERM LIABILITIES
Long-te�rn liabiliry activiry for tlieyear ended December 31, 2016,was as follows:
Begivnivg Evdivg D�e Witttiv
Balance Additiovs Re�ctions Balance OneYeac
Primazy 6wemment
6wemmental activities:
Bonds payable:
(3everalobligationbovds $ 2�1.95,000 $4,660,000 $ (210,000) $ 6,]45,000 $ 800,000
Special assessmentbovds ll,485,000 4,2]5,000 (1,845,000) 19y15,000 1,115,000
Bondpcertti�ms 493235 35]684 (]4,]95) ]]6124
Totalbondspayable 20TJ3T35 9,192,684 (2,129,]95) 2],436,124 1y15,000
Capitalleasepayabl�EDAcomponent�nit 4,805,000 - (4,805,000) - -
Capitalleasepayabl�golfcarts 3],432 - (3],432) - -
ONerpos[employmentbene5ls 65�21 ],36] - ]2,888 -
Compensatedabsencespayable 85]206 ]3]8]5 (]1Q5]4) 8]550] 644332
Totalgovernmentactivities 26,038�94 1Q03],926 (],691,801) 28�84�19 2�59�32
B�sivess-type activities:
Bonds payable:
Reven�ebonds 600,000 - (600,000) - -
Bondpcertti�ms 9,856 (9,85�
Totalbondspayable 609,856 - (609,85� - -
ONerpos[employmentbene5ls 9,555 1,090 - 10,645 -
Compensatedabsencespayable 64�64 8425] (]3,520) ]5101 63505
Totalb�sivessiypeac[ivifies 683]]5 85�4] (683,3]� 85]46 63505
Total primary government $26]22 169 $1Q123,2]3 $ (8,3]S,ll]) $28 4]0 265 $2 622 83]
Compovevt Uvit
Bonds payable:
Reven�ebonds $ 4 805 000 $ - $ (4,805,000) $ $
Totalbondspayable 4,805,000 - (4,805,000) - -
ONerpos[employmentbene5ls 811 100 - 911 -
Compensatedabsencespayable 4624 84]9 (5,]6]) ]336 10]5
Totalcomponentunit $ 4810435 $ 8�]9 $ (4,S1Q]6]) $ 8,24] $ 10]5
Forthegovemmental activities,capital leases, otherpostemploymentbenefits and compensated absences
are generally liquidated by the general fund.
All long-te�m bonded indebtedness outstanding atDecember 31, 2016 is backed by the full faith and credit
of the Ciry, including special assessment and revenue bond issues. Delinquent assessments receivable at
December 31,2016 Wtaled$21,213.
On November 18, 2015 Ciry Council authorized calling the remaining outstanding balances of the 2009B
W ater Revenue Refunding Bonds of 2009B in advance of their original maturities. The bonds were called
and paid in full on February 1,2016.
62
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
D. CAPITAL LEASES
In 200$ the Ciry entered inW a lease-pwchase agreement with the IDA (a component unit)W finance the
expansionoftheicearena. Pertheagreement,theIDAissued$6,SOQOOOofrevenuebondsandtheproceeds
were used by the Ciry W financethe expansioa The lease qualified as a capital leasefor accounting pmposes,
and therefore,the construction cosfs were capitalized in the primazy govemment
In January 2016, the Ciry issued $4,66Q000 in General Obligation Refunding Bonds, series 2016A the
proceeds ofwhich wereused W pay offthe capihel lease in its entirery.
In 2012, the Ciry entered inW a lease agreement for the purohase of 75 golf carFs. The lease agreement
qual�ed as a capital lease for accounting pmposes. This capital lease was paid off in 2016.
Note 7 LEGAL DEBT MARGIN
The Ciry is subject W a sheh�Wry limitation by the Shete of Minnesota for bonded indebtedness payable principally
from property taees. The limitation was 3 % of taeable market value and The Ciry of Codage Grove's legal debt
margin for 2016 and 2015 is computed as follows:
Duember31, 2016 Duember31,2015
MarketValue(afferfiscaldisparities) $ 3,17A,68Q400 $ 2,705,975,400
DebtLimit 93,740,412 81,179,262
Amount of debt applicable W debt limit
Totalbondeddebt $26,66Q000 $25,185,000
Less: Special assessmentbonds (19,915,000) (17,485,000)
Proprietazybonds - (60Q000)
T�������eno�as �z,oss,000� �z,z9s,000�
Total debtapplicable W debtlimit $4,66Q000 $4,805,000
Legaldebtmargin $ 8Q080,412 $ 76,374,262
Note 8 PENSION PLANS
The Ciry participates in various pension plans, Wtal pension expense for tlie year ended Duember 31, 2016 was
$2,412,713. Componentsofpensionexpensearenotedinthefollowingplansummaries.
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION(PERA)-DEFINED BENEFIT
Plan Description
The Ciry of Cottage Grove participates in the following cosbsharing multipl�employer defined benefit pension
plans administered by the Public Employees Retirement Association of Minnesota(PERA). PERA's defined
benefitpension plans are esheblished and administered in accordance with Minnesota Statutes,Chapters 353 and
356. PERA'sdefinedbenefitpensionplansaretaequalifiedplansunderSection401(a)oftlieIntemalRevenue
Code.
General Employees RetirementPlan(General Employees Plan(accounted for in the General Employees Fund))
All ful4time and certain part-time employees of the Ciry are covered by the General Employees Retirement Plan.
General Employees Plan members belong W either tlie Coordinated Plan or tlie Basic Plan. Coordinated Plan
members are covered by Social Secwiry and Basic Plan members are not The Basic Plan was closed W new
membersin1967. AllnewmembersmustparticipateintheCoordinatedPlan.
63
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Public Employees Police and Fire Plan(Police and Fire Plan(accounted for in the Police and FireFund))
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief
associatioq now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,the Police
and Fire Plan also covers police officers and firefighters belonging W local relief associations that elected W
merge with and transfer assefs and administration W PERA.
Benefits Provided
PERAprovidesretirement, disabiliry, anddeathbenefits. Benefitprovisionsareestablishedbystatestah�teand
can only be modified by the state legislature.
Benefit increases are provided W benefitruipients each Januazy. Increases are related W the funding ratio ofthe
plan. Members in plans that are at least 90% funded for hvo consuutive years are given 2.5% increases.
Members in plans that have not exceeded 90%funded,or have fallen below 80°/y are given 1%increases.
The benefit provisions stated in the following paragraphs of this section are cmrentprovisions and apply W active
plan participants. Vested,te�rninated employees who are entitled W benefifs but are not receiving them yet are
bound by the provisions in effect at the time tliey last te�rninated their public service
General Employees Plan Benefits
Benefits are based on a member's highest average salary for arry five successive years of allowable service, age,
and years of credit at te�rnination of service. Two methods are used W compute benefits for PERA's Coordinated
andBasicPlanmembers. Theretiringmemberreceivesthehigherofastep-ratebenefitaccrualfo�rnula(Method
1) or a level accrual formula(Metliod 2). Under Method 1,the annuiry accrual rate for a Basic Plan member is
2.2%of average salary for each of the first ten years of service and 2J%for each remaining year. The annuiry
accrual ratefor a Coordinated Plan member is 1.2%of average salazy for each ofthefirstten years and 1J%for
eachremainingyear. UnderMethod2,tlieannuiryaccrualrateis2J%ofaveragesalazyforBasicPlanmembers
and 1 J%for Coordinated Plan members for each year of service For members hired prior W July 1, 1989,a full
annuiry is available when age plus years of service equa190 and normal retirement age is 65. For members hired
on or atter July 1, 1989,no�rnal retirement age is the age for unreduced Social Secwiry benefifs capped at 66.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired atter June 3Q 201Q but before July 1, 2014,vest on a
prorated basis from 50%atter fiveyears up W 100%atter ten years of credited service Benefits for Police and
Fire Plan members first hired atter June 3Q 2014,vest on a prorated basis from 50%affer ten years up W 100%
affer hvenry years of credited service The annuiry accrual rate is 3%of average salazy for each year of service
For Police and FirePlan members who werefirsthired prior W July 1, 1989,a full annuiry is available when age
plus years of service equal at least 90.
Contributions
Minnesota Statutes Chapter 353 sGs the rates for employer and employee contributions. Contribution rates can
only be modified by the shete legislature.
General Employees Fund Contributions
Basic Plan members and Coordinated Plan members were required W contribute 9.1% and 6.50%,
respectively, of their annual covered salazy in calendar year 2016. The Ciry was required W contribute
llJB%ofpayforBasicPlanmembersand7.50%forCoordinatedPlanmembersincalendaryear2016. The
Ciry's contributions W tlie General Employees Fund for theyear ended December 31, 2016,were$47A,202.
The Ciry's contributions were equal W the required contributions as set by state statute.
Police and Fire Fund Contributions
64
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Plan members wererequired W contribute 10.8%oftheir annual covered salazy in calendar year 2016. The
Ciry was required W contribute 16.20%of pay for Police and Fire Fund members in calendar year 2016. The
Ciry'scontributionsWthePoliceandFireFundfortheyearendedDecember31, 2016were$718,935. The
Ciry's contributions were equal W the required contributions as set by state statute.
Pension Costs
General Employees Fund Pension Costs
AtDecember 31, 2016,the Ciry reported a liabiliry of$7,12$925 for its proportionate share ofthe General
EmployeesFund'snetpensionliabiliry. TheCiry'snetpensionliabiliryreflectedareductiondueWtheShete
ofMinnesota's contribution of$6 million W tlie fund in 2016. The State ofMinnesota is considered a non-
employer contributing entiry and the State's contribution meGs the definition of a special funding situation.
The Shete of Minnesota's proportionate share of tlie net pension liabiliry associated with the Ciry Wtaled
$27,747. The netpension liabiliry was measured as of June 3Q 2016, and the Wtal pension liabiliry used W
calculate the net pension liabiliry was detem�ined by an actuarial valuation as of that date. The Ciry's
proportion of the net pension liabiliry was based on the Ciry's contributions received by PERA dwing the
measwement period for employer payroll paid dates from July 1, 2015, through June 3Q 2016,relative W
the Wtal employer contributions received from all ofPERA's participating employers. AtJune3Q 2016,the
Ciry of Grove's proportion share was 0.0878%which was a decrease of 4.5%from its proportion measwed
as ofJune3Q 2015.
For tlieyear ended December 31, 2016,the Ciry of Codage Groverecognized pension expense of$934,973
foritsproportionateshareoftheGeneralEmployeesPlan'spensionexpense InadditioqtheCiryruognized
an additional $27,747 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of$6 million W the General Employees Fund.
At December 31,2016,the Ciry of Cottage Grove reported its proportionate share ofthe General Employees
Plan's defe�red outflows ofresouroes and defe�red inflows ofresowces related W pensions fromthefollowing
sowces:
Defe�red Outflows of Defe�red Inflows of
Resowces Resowces
Differences behveen e ected and actual economic e erience $ $586,261
Differencebehveenprojectedandactualinvestrnenteamings 1,36$185
Chan es in ach�arial assum tions 1,395,850
Changes in proportion 302,637
Contributions paid W PERA subsequent W tliemeaswement date 212,101
Total $2,976,136 $88$898
$212,101 reported as defe�red outflows of resouroes related W pensions resulting from Ciry contributions
subsequent W the measwement date will be recognized as a reduction of the net pension liabiliry in the year
ended December 31, 2017. Other amounts reported as defe�red outflows and defe�red inflows ofresowces
related W pensions will be recognized in pension expense as follows:
YearendedDecember3l: PensionExpenseAmount
2017 $48$652
2018 48$650
2019 6�V0,329
2020 257,506
2021 -
Thereatter
$1,875,137
65
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Police and Fire Fund Pension Costs
At Duember 31,2016,the Ciry of Codage Grove reported a liabiliry of$17,818,574 for its proportionate share of the
Police and Fire FunBs netpension liabiliry. The netpension liabiliry was measwed as ofJune3Q 2016 and tlie Wtal
pension liabiliry used W calculate the net pension liabiliry was detem�ined by an actuarial valuation as of that date.
The Ciry's proportion of the net pension liabiliry was based on the Ciry's contributions received by PERA during the
measwement period for employer payroll paid dates from July 1, 2015 through June 3Q 2016, relative W the Wtal
employer contributions received from all ofPERA's participating employers. AtJune 3Q 2015,the Ciry of Cottage
Grove's proportion was.445%which was an increase of 2.5%from its proportion measwed at June 3Q 2015.
For tlieyear ended December 31, 2016,the Ciry of Cottage Grove recognized pension expense of$3,057,502 for its
proportionate share of the Police and Fire FunBs pension expense The Ciry of Cottage Grove also ruognized
$4Q050 for tlieyear ended December 31, 2016, as pension expense(and grantrevenue)for its proportionate share of
theSheteofMinnesota'son-behalfcontributionsWthePoliceandFireFund. Legislationpassedin2013requiredthe
State of Minnesota W begin contributing$9 million W the Police and Fire Fund each year starting in fiscal 2014.
At Duember 31, 2016, the Ciry of Codage Grove reported its proportionate share of the Police and Fire Fund's
defe�red outflows ofresowces and defe�red inflows ofresowces related W pensions from thefollowing sowces:
Defe�red Outflows of Defe�red Inflows of
Resowces Resouroes
Differences behveen expected and ach�al economic experience $ $2,032,508
Differencebehveenprojectedandactualinvestrnenteamings 2,70Q07A
Chan es in actuarial assum tions Q82$381
Chan esin ro ortion 104,155 36,001
Contributions aid W PERA subse uent W the measwement date 35Q468
Total $13,001,028 $2,06$509
$359,468 reported as defe�red outflows of resowces related W pensions resulting from Ciry of Cottage Grove
contributions subsequent W the measurement date will be recognized as a reduction of the net pension liabiliry in
theyear ended December 31,2017. Other arnounts reported as defe�red outflows and inflows ofresowces related
W pensions will berecognized in pension expense as follows:
YearendedDecember3l: PensionExpenseAmount
2017 $2,269,968
2018 2,26Q968
2019 2,269,979
2020 2,055,170
2021 1,707,966
Thereaffer
Total $1Q573,051
Actuarial Assumptions
The Whel pension liabiliry in the June 3Q 2016,actuarial valuation was detem�ined using the following actuarial
assumptions:
Inflation 2.50%peryear
ActiveMemberPayrollGrowth 3.25%peryear
InvestrnentRateofRetum 7.50%
66
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Salazyincreaseswerebasedonaservic�relatedtable. Mortaliryratesforactivemembers,retirees,surviwrsand
disabilihents were based on RP-2014 tables for males or females,as appropriate,with slight adjustrnents. Cost of
living benefit increases for retirees are assumed W be: 1%for all futureyears for the General Employees Plan and
Police and Fire Plan.
Actuarial assumptions used in the June 3Q 2016 valuation were based on tlie results of actuarial experience
studies. The most recent fow year experience study in the General Employees Plan was for tlie period July 1,
2004,tlirough June 3Q 2009.
The following changes in actualrial assumptions occmred in 2016:
General Employees Fund
• The assumed post retirement benefit increase rate was changed from 1.0%per year through 2035
and 2.5%thereaffer W 1.W/o per year for all fuh�reyears.
• The assumed investrnent retum was changed from 7.9%W 7.5°/u The single discount rate was
changed from 7.9%W 7.5%.
• Other assumptions were changed pursuant W the experience study dated June 3Q 2015. The
assumed future salazy increases, payroll growth and inflaction were decreased by 0.25%W 3.25%
for payroll growth and 2.5%for inflation.
Police and Fire Fund
• The assumed post retirement benefit increase rate was changed from 1.0%per year through 2037
and 2.5%thereaffer W 1.W/o per year for all fuh�reyears.
• The assumed investrnent retum was changed from 7.9%W 7.5°/u The single discount rate was
changed from 7.9%W 5.6%.
• The assumed future salary increases, payroll growth and inflaction were decreased by 0.25%W
3.25%for payroll growth and 2.5%for inflation.
The State Board of Investrnent, which manages the investrnents of PERA, prepares an analysis of the
reasonableness ofthe long-te�rn expected rate of retum on a regular basis using a building-block method in which
besbestimaterangesofexpectedfutureratesofretumaredevelopedforeachmajorassetclass. Theserangesare
combined W produce an expected long-te�rn rate of retum by weighting the expected future rates of retum by the
target asset allocation percentages. The target allocation and best estimates of geometric real rates of retum for
each major asset class are summarized in the following table:
Asset Class TargetNlocation Long-Term Expec[ed Rwl Rate of Return
DomesticSWcks 45% 5.50%
IntemationalSWcks 15% 6.OW/o
Bonds 18% 1.45%
AlternativeAssGs 2W/o 6.4W/o
Cash 2% 0.50%
DiscountRate
The discount rate used W measwe the Whel pension liabiliry in 2016 was 7.5%y a reduction from the 7.9%used in
2015. The projection of cash flows used W detemtine the discount rate assumed that contributions from plan
membersandemployers wi116emadeatratessetineL6rmesotaSY�fes. Basedonthoseassumptions,tliefiduciazy
net position of tlie General Employees Fund was projected W be available W make all projected future benefit
payments of cmrent Plan members. Therefore,the long-te�rn expected rate of retum on pension plan investrnents
was applied W all periods ofprojected benefitpayments W detem�ine the Whel pension liabiliry.
67
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
In tlie Police and Fire Fund, the fiduciazy net position was projected W be available W make all projected fuh�re
benefit payments of cmrentplan members through June 3Q 2056. Beginning in fiscal uears ended June 2057 for
tlie Police and Fire Fund, when projected benefit payments exceed the funds' projected fiduciazy net positioq
benefit payments were discounted at the municipal bond rate of 2.85%based on an index of 20-year general
obligation bonds with an average AA creditrating atthe measwement date. An equivalent single discount rate of
5.6%for the Police and Fire Fund was dete�rnined thatproduced approximately the sarne presentvalue ofprojected
benefits using 7.50%applied W all years of projected benefits through the point of asset depletion and 2.85%atter.
Pension Liabitity Sensitivity
The following presents the Ciry of Cottage Grove's proportionate share of the net pension liabiliry for all plans it
participates in, calculated using tlie discount rate disclosed in the preceding paragraph, as well as what the Ciry of
Cottage Grove's proportionate share of the net pension liabiliry would be if it were calculated using a discount rate
1 percentage point lower or 1 peroentage point higher tlian the cmrent discount rate:
1%Decreasein DiscountRate 1%Increasein
Discount Discount
�� ��
6S% 7S% 8S%
Ciry's proportionate share of
The General Employees Fund
netpensionliabiliry $1Q125,186 $7,12$925 $4,66Q821
Ciry's proportionate share of
The Police and Fire Fund net
pensionliabiliry $7A,959,654 $17,81$574 $11,983,770
Pension Plan NSduciary Net Position
Detailed info�rnation about each pension plan's fiduciazy net position is available in a separately-issued PERA
financial report that includes financial shetements and required supplementazy informatioa That report may be
obtained on the Internet at www.mnpera.ore.
B. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION(PERA)-DENTNED CONTRIBUTION
PLAN
Five council members of the Ciry of Cottage Grove are covered by the Public Employees Defined Contribution
Plan, a multiple-employer defe�red compensation plan administered by PERA. The Defined Contribution Plan
is a hex qualified plan under Section 401(a)of the Intemal Revenue Code and all contributions by or on behalf of
employees aretax defe�red until time ofwithdrawal.
The defined contribution plan consists of indibudual accounts paying a lump sum benefit Plan benefits depend
solely on amounts contributed W theplanplus investrnenteamings,less administrativeexpenses. Therefore,tliere
is no future liabliry W the employer. eL6rmesota SY�tes, Chapter 353D.03, specifies plan provisions, including
tlie employee and employer contribution rates for those qual�ed personnel who elect W participate. An eligible
elected official who decides W participate contributes 5%of salazy which is matched by the elected official's
employer. Employer and employee contributions are combined and used W purohase shares in one or more of
the seven accounts ofthe Minnesota Supplemental InvestrnentFund. For administering theplan,PERA receives
2%of employer contributions and hvenry-five hundredtlis of 1%(.0025)ofthe assGs in each member's account
annually.
Pension expense for theyear is equal W the contributions made Total contributions made by the Ciry dwing
fiscal year 2016 were:
68
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Contribution Amount Percentage of Covered Payroll Required
Employee Employer Employee Employer Rate
$1,157 $1,157 5% 5% 5%
C. COTTAGEGROVEFIRERELIEFASSOCIATION
Plan Description
The Volunteer Firefighters of the Ciry of Cottage Grove are members of the Codage Grove Fire Relief
Associatioa The Cottage Grove Fire Relief Association is the administraWr of a single employer defined
benefitpensionplanesheblishedWprovidebenefitsformembersoftheCottageGroveFireDepartment The
plan is established and administered in accordance with eL6rmesofaSYote SYrdufes.
The Relief Association issues a publicly available financial report that includes financial statements and
required supplementary info�rnatioa The report may be obtained by w�'iting W Codage Grove Volunteer
Fire ReliefAssociatioq 751680'�Street South, Codage Grove,MN 55016.
Benefits Rovided
VolunteerfirefightersoftheCiryaremembersoftheCottageGroveFireReliefAssociatioa Fullretirement
benefits are payable W members who have reached age 50 and have completed 20 years of service for a lump
sum service pensioa Partial benefifs are payable W members who have reached 50 and have completed 5
years of service. Disabiliry benefifs and surviwr benefifs are also payable W members or their beneficiaries
based upon requirements set forth in the bylaws. These benefit provisions and all otlier requiremenfs are
consistentwith enabling shete statues.
Emolovees Covered bv BenefitTemis
At December 31,2016,tlie following employees were covered by the benefit te�rns:
Inactive employees or beneficiaries cmrently receiving benefits -
Inactive employees entiHed W butnotrueiving benefits 18
Active employees 45
Total number ofparticipanfs 63
Contributions
Minnesota Stah�tes Chapter 47AA.092 spec�es minimum support rates required on an annual basis. The
minimum support rates from the municipaliry and from State aids are dete�rnined as the amount required
W meet the no�rnal cost plus amortizing any existing prior service costs over a ten year period. The Ciry's
obligation is the financial requirement for the year less state aids. Arry additional payments by tlie Ciry
shall be used W amortize the unfunded liabiliry of the relief associatioa The Association is comprised of
volunteers: therefore, there are no payroll expenditures (i.e tliere are no covered payroll percentage
calculations). Dwing theyear,the Ciry recognized as revenue and as an expendih�re an on behalfpayment
of$193,481 made by the State of Minnesota for the Relief Association.
Net Pension Liabilitv
The Ciry's net pension liabiliry was measwed as of December 31, 2016, and the Wtal pension liabiliry
used W calculate the netpension liabiliry was determined by an actuarial valuation as ofthat date.
Actuarial assumptions.
The Wtal pension liabiliry in the December 31, 2016, actuarial valuation was dete�rnined using the
following actuarial assumptions,applied W all periods included in tliemeaswement
Inflation 2J5%
69
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Salary increase N/A
Investrnentrateofretum 7.W/o
The value of death benefits is similar W the value of the retirement pensioa Because of low retirement
ages,theplanassumesnopr�retirementmortaliry.Postrretirementmortalirydoesnotapplyastlie benefit
structure and form of payment do not reflect lifetime benefits.
The long-te�rn retum on assGs has been set based on the plan's target investrnent allocation along with
long-te�rn retum expectations by asset class. 4Vhen there is sufficient hisWrical evidence of market
outperFomiance, hisWrical average retums may be considered. Best estimates of arithmetic real rates of
retum for each major asset class included in the pension plan's herget asset allocation as of the
measwement date are summarized in the heble:
AssetClass TareetAllocation Lone-te�rnFxouted
Real Rate of Retum
Domestic equiry 35% 5.58%
Intemational equiry 15% SJl%
Fixed income 45% 2.27%
Real estate and altematives 0% 0.00%
Cash 5% 0.84%
Discountrate
The discount rate used W measure the Wtal pension liabiliry was 7.0%. Assefs were projected using
expected benefit paymenfs and expected asset retwns. Expected benefit payments by year were
discounted using the expected asset retum assumption for years in which the assGs were sufficient W pay
all benefit payments. Arry remaining benefit payments atter the trust fund is exhausted are discounted at
the rrwnicipal bond rate. The equivalent single rate is the discount rate.
Chanees in the Net Pension Liabilitv
Increase(Durease)
Plan
Total Fiduciary
Pension Net NetPension
Liabiliry Position Liabiliry
Balances atDecember 31,2015 $1,597,912 $2,327,613 $(729,701)
Changes for the year
Servicecost 109,062 - 109,062
Interest 85,750 - 85,750
ch�g� ofass�aq,uo�s �iso,zao� - (isqzao�
Changesofbenefitte�rns - - -
Contributions—Stateandlocal - 20Q536 (20Q53�
Netinvestrnentincome - 146,660 (146,660)
ou,�aaa�eo�s - zio �zio�
Benefit payments, including
memn��o�o-�n�uo��es,�as �z9s,�eo� �z9s,�eo� -
namN�so-aeoe�p�se �iz,is9� �iz,is9�
xee�h�ges �zsi,iss� s9,sm �z�qe9s�
�o
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Balances atDecember 31,2016 $1,366,77A $2,367,120 $(1,OOQ39�
Pension Liabilitv Sensitivitv
The following presents the net pension liabiliry for all plans it participates in, calculated using the discount
rate disclosed in tlie preceding paragraph,as well as whatthe Ciry of Cottage Grove's proportionate share of
the net pension liabiliry would be if it were calculated using a discount rate 1 percentage point lower or 1
peroenhege point higher than the cmrent discount rate:
1%DureaseinDiscountRate DiscountRate 1%IncreaseinDiscountRate
Discountrate 6% 7% 8%
Ciry's proportionate share of
Thenetpensionliabiliry $(914,575) $(1,OOQ39� $(1,081,915)
Pensionplanfiduciarynetpositioa Detailedinfo�rnationabouttliepensionplan'sfiduciazynetpositionis
available in the separately issued relief association financial report
Pension E�oense and Defe�red Outtlows of Resouroes and Defe�red Inflows of Resowces Related W
Pmsions
For the year ended Duember 31,2016,tlie Ciry of Cottage Grove ruognized pension expense of$179,023.
At December 31, 2016,the Ciry of Cottage Grove reported its proportionate share of the defe�red outflows
ofresouroes and defe�red inflows ofresouroes related W pensions from thefollowing sowces:
Defe�red Outflows of Defe�red Inflows of
Resowces Resowces
Differences behveen expected and actual economic $- $-
experience
Differencebehveenprojutedandach�alinvestrnenteamings 144,586
Changes in assumption 63,279 116,385
Total $207,865 $116,385
Otlier arnounfs reported as defe�red outflows and inflows of resowces related W pensions will be recognized in
pension expense as follows:
YearendedDecember3l: PensionExpenseAmount
2017 $43,221
2018 43,221
2019 43,222
2020 (11,834)
2021 (6,689)
Thereatter (19,661)
71
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Note 9 INTERF[JND LOANS AND TRANSFERS
The Ciry uses inte�fund loans when possible W finance construction activities in order W avoid costs associated with
issuingbonds. Theseloansareforthispmpose TheintedundloanrueivableandpayablebalancesatDuember
31,2016 were:
Fund Rueivable Payable
Major Govemmmfal Funds:
Municipal Building Capital ProjectFund $ - $ 7,425,000
ClosedDebtFund 2,OOQ000 -
NonmajorGove�nmentalFunds 2,6{5,8M 1,145,8M
Major Business-Type Funds:
WaterOperatingFnteipriseFund 1,092,500 -
SewerOperatingEnteipriseFund 2,832,500
Total $ $570,804 $ $570,804
Inte�fund rueivable and payable balances are used for temporazy cash deficits. Intedund rueivable and payable
balances atDecember 31,2016 are as follows:
Fund Rueivable Payable
ClosedDebtFund $ 405,131 $ -
Nonmajor Gove�nmental Funds 2 194153 2 599 284
Total $ 2,599,284 $ 2,599,284
Inte�fund transfers:
Municipal Closed Pavement
Bldg Debt Mange
Capital Fund Capital Nonmajor
General Rojut Projut Govem.
Fund Fund Fund Funds Total
Transfers Out
GeneralFund $ - $49,452 $115,388 $ 32,968 $ 854,792 $ 1,052,600
ClosedDebtFund - - - - 54,722 54,722
NonmajorGovemmentalFunds 4Q019 - - - 15,223 55,242
Major Business Fund Type:
StreetLightFund 45,846 - - - - 45,846
CottageGroveEMSFund 91,683 - - - - 91,683
Water Operating Fund 166,554 - - - - 166,554
Sewer Operating Fund 181,611 181,611
Total transfers $ 525,713 $49,452 $115,388 $ 32,968 $924,737 $1,6{8,258
Inte�fund transfers allowthe CiryW allocatefinancial resowces W thefunds thatreceive benefitfrom services provided
by another fund. All transfers in 2016 were considered W be routine in nature.
72
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Note 10 TAX INCREMENP N'INANCING
The Ciry of Cottage Grove is the administering authoriry for the following Tax Increment Financing Districts:
Cottagesof
Cottage (3ateway In�shial American
Grwe NorNDistriR Park Logistics Crerdenworld
#1-8 #1-12 #1-14 #1-15 #1-16
Ecov. Econ. Ecov.
TypeofDis[ric[ Ho�9vg Redevelop Develop. Develop. Develop.
Chapter 469.114 469.1]4 469.114 469.1]4 469.114
Es[ablished 1991 2001 200] 2015 2016
Dis[ric[Duration 25years 25years 9years 9yeacs 9years
Curtenttae capaaly $ 33253 $ 828,]63 $131250 $123,]29 $ 4,650
Origival tae capaaly (1,268) (238,351) (5226) (123,465) (4,650)
Capturedtaecapaaly 31y85 590,412 126,024 264 -
Fiscal Asparily de�ctiov (44�99)
TotaltaecapaalycetaivedbyCity $ 31y85 $59Q413 $ 81,425 $ 264 $
Debtissued $ - $ 4,405,000 $ - $ - $ -
Amowtcedeemed (2,32Q000)
Debto�ts[anAvg $ $2085000 $ $ $
The Ciry has entered inW one Tax Increment Financing agreement which meefs the criteria for disclosure under
Gove�nmentalAccountingStandardsBoard(GASB)Statement77-TaxAbatementDisclosures. TheCiry'sauthoriry
W enter inW tliis agreement comes from eL6rmesota SY�te 469. The Ciry entered inW this agreement for the pmpose
of economic development
Under the agreement, the Ciry and developer agree on an arnount of development costs W be reimbwsed W the
developer by the Ciry through hex revenues from the additional taeable value of the property generated by tlie
development (hex increment). A "pay as you go" note is established for this arnount, on which the Ciry makes
payments for a fixed period of time with available hex increment revenue atter deducting certain administrative costs.
Dwing the year ended December 31, 2016 tlie Ciry generated$776,061 in hex increment revenue and made$114,849
inpayments W developers.
• TIF District #1-12 was established in 2001 for tlie pmpose of redeveloping certain blighted
properties inW reheil, commercial and senior housing developments. An agreement with
PHS/Cottage Grove Ine. called for up W$2.8 million W be reimbwsed through tae inerement over
atenyearperiod. DwingtheyearendedDecember31, 2016thedistrictgenerated$348,981oftae
inerementand$114,849inpaymentsonthepayasyougonoteweremade Thebalancedueonthe
note at year end was$1,507,186.
73
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Note 11 DENTCIT N'[JND BALANCES/NET POSITION
The Ciry has deficit fund balances/net position at December 31, 2016 as follows:
Fund Amount Thedeficitfundbalanceswillberesolvedthrough
Major Govemmmfal Funds:
MunicipalBuildingCapitalProjutFund $ 7,287,121 Futuretaelevies
MSAConstructionCapitalRojutFund 654,J42 FutureMSArevenues
Nonmajor Gove�nmental Funds:
Golf Cowse Fund 268,134 Future excess revenues and transfers from other Ciry
resowces
Park TrustFund 212,971 g�que developer charges
Sewer Connection and Area fund 669,764 Future special assessments and developer charges
2016Improvements Capihel ProjectFund 1,016,643 Future special assessments and developer charges
TaxInerementConstructionRevolvingFund 97,053 Futuretaeinerements
Note 12 CONPINGENCIES
A. RISK MANAGEMENT
The Ciry is exposed W various risks of loss related W Wrts, theft of, damage W and destruction of assGs;
e�rorsandomissionsandnaturaldisastersforwhichtheCiryca�riescommercialinswancepolicies. TheCiry
retains risk for the deductible portions of the insurance policies. The arnount of these deductibles is
considered immaterial W the financial statements.
There wereno significantreductions in inswance from theprevious year or settlements in excess of inswance
coveragefor any ofthepastthreefiscal years.
W orkers compensation coverage is provided through a pooled self-inswance program through the League of
Minnesohe Cities InswanceTrust(LMCIT).TheCiry pays an annual premium W LMCIT.TheCiry is subject
W supplemental assessmenfs as deemed necessazy by the LMCIT. The LMCIT reinswes tlirough Worker's
Compensation Reinswance Association(WCRA) as required by law.For workers compensatioq tlie Ciry is
subject W a$1Q000 medical expense deductible The Ciry's premiums are detem�ined atter loss experience
is known. The amount of premium adjustrnent, if any, is considered irrimaterial and not recorded until
rueived or paid.
Properly and casualry insurance coverage is provided through a pooled self-insurance prograrn through
LMCIT. The Ciry pays an annual premium W the LMCIT. The Ciry is subject W supplemental assessments
as deemed necessazy by the LMCIT.
The Ciry esheblished the Self Inswance Fund in 1986 W account for and finance its uninsured risks of loss
related W Wrts; theR of, darnage W, and destruction of assefs; e�rors and omissions; injuries W employees;
and natural disasters. Under this program,the SelfInsurance Fund provides coverage for losses up W$SQ000
for each claim(annual aggegate is$l OQ000). The Ciry pwchases commercial inswancefor claims in excess
of coverage provided by the Fund and for any risk of loss not covered. SetHed claims have not exceeded tlie
commercial coverage in any of the past three fiscal years.
This fund is presented as an intemal service fund rype All funds ofthe Ciry participate in tlieprograrn and
make payments W the Self Insurance Fund based on hisWrical cost informatioa The claims liabiliry of
$159,741 reported in the Fund at December 31, 2016 is based on tlie requiremenfs of Govemmental
Accounting Standards Board StatementNumber 1Q which requires that a liabiliry for claims be reported if
74
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
information prior W the issuance of tlie financial shetements indicates that it is probable tliat a liabiliry has
been incmred at tlie date of tlie financial statements and the arnount of the loss can be reasonably estimated.
Changes in the fund's claims liabiliry arnounts were as follows:
Begivnivg Claims and Evd
ofYear Changesiv CAaim ofYear
1'�' Liabilily Estimates Paymevls Liabilily
2016 $ 143,]OS $ 165,035 $ (149,002) $ 159,]41
2015 158y05 125,ll1 (140J68) 143,]OS
2014 130,039 1]2,634 (143,]68) 158y05
B. LITIGATION
The Ciry attomey has indicated that existing and pending lawsuits,claims and otlier actions in which the Ciry
is a defendant are either covered by inswance; of an immaterial arnount; or, in thejudgment of the Ciry
attomey,remotely recoverableby plaintiffs.
Q FEDERAL AND STATE FUNDS
The Ciry receives financial assistance from federal and state govemmental agencies in the fo�rn of grants.
The disbwsement of funds received under these programs generally requires compliance with the te�rns and
conditions specified in the grant agreements and are subject W auditby the granWr agencies. Any disallowed
claims resulting from such audifs could become a liabiliry of the applicable fund. However, in the opinion
ofmanagement,arry such disallowed claims will nothave a material effect on arry ofthe financial statements
of the individual fund rypes included herein or on the overall financial position of the Ciry at December 31,
2016.
D. TAXINCREMENTS
The Ciry's tae increment districts are subject W review by the State of Minnesota Office of tlie State AudiWr
(OSA). Arry disallowed claims or misuse oftae inerements could become a liabiliry ofthe applicable fund.
Note 13 DEFERRED AD VALOREM TAX LEVIES-BONDED DEBT
General Obligation bond issues sold by the Ciry are financed by ad valorem tae levies and special assessment bond
issues sold by the Ciry arepartially financed by ad valorem tae levies in addition W special assessments levied against
the benefiting properties. 4Vhen a bond issue W be financed partially or completely by ad valorem tae levies is sold,
specific annual arnounts of such hex levies are sheted in the bond resolution and the Counry AudiWr is notified and
instructed W levy these hexes over the appropriate years. The future hex levies are subject W cancellation when and if
the Ciry has provided altemative sowces offinancing. The Ciry Council is required W levy any additional taees found
necessary for full payment of principal and interest
These future scheduled hex levies are not shown as assets in the accompanying financial shetements at December 31,
2016 and 2015. Fuh�re scheduled tae levies for all bonds outstanding atDecember 31,2016 Wheled$14,483,090.
75
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Note 14 N'[JND BALANCES
AtDecember 31,2016the Ciry had various fund balances through legal restriction and Ciry Council authorization.
Fund balance appropriations atDuember 31, 2016 are shown on thevarious balance sheGs as segregations ofthe
fund balance Thefund balance classifications for govemmental funds are as follows:
Non-
spevdable Res[ric[ed Committed As9gped Uvassigped Total
(3everalFLvd: $ - $ - $ - $ - $ 9,036,425 $ 9,036,425
Hepaiditems 11222 - - - - 11,222
Compevsatedabsevices - - - 828,250 - 828,250
20166�dget - - - 520,000 - 520,000
Emecald ash bocer progcarn - - - 40,200 - 40�1.00
Schoolb�ssafety 4]50 4]50
Total(3eneral Fwd 11222 1 393 200 9 036 425 10 440 84]
Mw�ap�s���a�o,ca�e�r�q�eF,oa �,zs�,izi� ��,zs�,izi�
MSA Constr�c[ion Capital Pcyec[FLvd:
N[secous[n,oeonzctiviees - - - - (esa5az) (esa5az)
ClosedDebtFwd:
DebtceAicement - - - 4,259,04] - 4,259,04]
Pavement Managemevt Debt Swvice FLvd:
DebtceAicement - 3,055,149 - - - 3,055,149
Pavement Managemevt Capital Hyec[FLvd:
Pavement management constr�c[ion activities 1,233,632 1,233,632
TotalOtlierMajocFLvds 3,055,149 5,492,6]9 (Jy42,063) 605,]65
Nonmajor Crovemmental NLnds:
Hepaiditems 5,]23 - - - - 5,]23
Inventay 28,]50 - - - - 28,]50
Forfatureavdsazure - 23J08 - - - 23J08
Charitablegarnblivg - 4,45] " " " 4,45]
DebtceAicement - 168 - - - 168
Taeivecementp�uposes - 1ll,610 - - - 1ll,610
IceArena - - 59�50 - - 59�50
Recyclivgprogcarn - - 5]�23 - - 5]�23
Stortnwateractivities - - 614,011 - - 614,01]
Fquipmentceplacemevt - - - 1,]92,092 - 1,]92,092
Streetsealcoativg - - - 858,030 - 858,030
Ecovomicdevelopruevt - - - 3,33],189 - 3J3],189
FLNrepavementmavagement - - - 1,431,412 - 1,431,412
lteerttifigatiov - - - 364,6]6 - 364,6]6
FLNreroadsandtrails - - - 9]0,182 - 9]0,182
Gpital improvemevls " " " 8,]]4,089 - 8,]]4,089
DeSatFwdBalance (2�1.98,433) (2,198,433)
TotalNonmajocFLnds 34,4]3 145�43 ]31,090 1],52],6]0 (2,198,433) 16,14Q343
TotalFwdBalances(3ovemmevtelFLvds $ 45,695 $ 3,20Q692 $ ]31,090 $ 24,413,549 $(1,204,0]1) $ 2],186y55
76
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
Note 15 OTHER POSTEMPLOYMENT BENEFIT PLAN
At December 31, 2008, tlie Ciry adopted Govemmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The Ciry
engaged an actuazy W detem�ine the Ciry's liabiliry for postemployment healthcare benefits other than pensions.
A. PIANDESCRIPI'ION
The Ciry provides benefifs for retirees as required by Minnesohe Statute §471.61 subdivision 26. Active
employees,who retire from the Ciry when over age 50 and with 20 years of service,may continue coverage
with respect W both themselves and their eligible dependent(s)under tlie Ciry's health benefits prograrn until
age 65. Pursuant W tlie provisions of the plaq retirees are required W pay the Wtal premium cost As of
December 31, 2016 tliere were approximately 114 active participanfs, 2 retired participants and 1 disabled
participantreceivingbenefitsfromtheCiry'shealthplans. ThePlandoesnotissueaseparatereport
B. FUNDINGPOLICY
The Ciry funds its OPEB obligation on a pay as you go basis. For fiscal year 2016, the Ciry contributed
$13,469 W the plan.
C. ANNUAL OPEB COST AND NET OPEB OBLIGATION
The Ciry's annual other postemployment benefit(OPEB) cost(expense) is calculated based on tlie annual
required contribution(ARC), an amount actuarially dete�rnined in accordance witli the parameters of GASB
Statement45. The ARC represents a level offunding that, ifpaid on an ongoing basis,is projected W cover
no�rnal cost eachyear and arnortize any un-funded actuarial liabilities over a period not W exceed thirry years.
The following table shows the components of the Ciry's annual OPEB cosfs for theyear,tlie arnount ach�ally
paid from the plaq and changes in the Ciry's net OPEB obligatio¢
Mv�al cequiced Contrib�fion $ 24,194
Interes[ov Net OPEB Obligatiov ]59
Adj�strnenttoMv�alRequicedContrib�tiov (2y2])
Mv�al OPEB Cos[(Er.pense) 22,026
Contrib�tionsMade (13,469)
Ivcrease iv Net OPEB Obligafion 8,55]
Net OPEB Obligation-Begivnivg of Year ]5 88]
NetOPEBObligation-EvdofYear $ 84,444
The Ciry's annual OPEB cost,the percentage of tlie annual OPEB cost contributed W the plan, and the net
OPEB obligation for 2016:
Percevtege
Fiscal Mv�al ofAnn�al Net
Yeac OPEB OPEB Cos[ OPEB
Evded Cwt Contrib�ted Obligatiov
12/31/2016 $22,026 612% $ 84,444
12/31/2015 22,212 6]2% ]5,88]
12/31/2014 22,533 53J% 68,614
77
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATEMEN'CS
December 31,2016
D. FUNDEDSTATUSAND FUNDEDPROGRESS
As ofJanuary 1,2014,themostrecentactuarial valuation date,the Ciry's unfunded ach�arial accrued liabiliry
(UAAL) was $324,523. The annual payroll for active employees covered by the plan in the actuarial
valuation was$9,765,700 for a ratio ofUAAL W covered payroll of33°/u
Actuarial valuations of an ongoing plan involve estimates ofthe value ofreported arnounts and assumptions
abouttheprobabiliryofoccmrenceofeventsfarinWthefuture. Exarnplesincludeassumptionsaboutfuture
employment,mortaliry, and healthcare cost trends. Amounts detem�ined regarding the funded status of the
plan and the annual required contributions ofthe employer are subjut W continual revision as actual results
are compared with past expectations and new estimates aremade about tliefuture The schedule offunding
progress,presented as required supplementary info�rnation following the notes W the financial shetements,
presents multiyear trend info�rnation about whether the actuarial value of plan assGs is increasing or
decreasing over time relative W the actuarial accrued liabilities for benefifs.
E. ACTUARIAL METHODS AND ASSUMPTIONS
Projutions of benefits for financial reporting pmposes are based on the substantive plan (the plan as
undersWod by the employer and plan members)and include the rypes ofbenefits provided atthe time of each
valuation and the hisWrical pattem of sharing of benefit costs behveen tlie employer and plan members W
that point The actuarial methods and assumptions used include techniques that are designed W reduce tlie
effects of short-te�rn volatiliry in actuarial accrued liabilities and tlie actuarial value of assets,consistent with
the long-term perspective of the calculations.
In the Januazy 1, 2014 actuarial valuatioq the projected unit credit ach�arial cost method was used. The
actuarial assumptions included a 1%investrnent rate of retum (net of administrative expenses), which is a
blended rate of the expected long-term investrnent retums on plan assGs and on tlie employer's own
investrnentscalculatedbasedonthefundedleveloftheplanatthevaluationdate. Theinflationassumption
was 1%. The initial healthcare trend rate was 8°/y reduced by decrements W an ultimate rate of 3%after five
years. The UAAL is being arnortized as a level peroenhege of projuted payrolls on an open basis. The
remaining amortization period at December 31,2016 was 21 years.
Note 16 OPERATING LEASES
The Ciry leases land for tlie golf course under an operating lease. The monthly lease paymenfs equal $1 per month
for the remaining te�rn of the lease agreement The lease was arnended in 2015 W add a first e�tension option W 2020.
In 2015, $60 was paid under this lease a�rangement for the entire five year extension.
TheCiryhadaleaseforeightcopiersunderanoperatingleaseandtheEDAcomponentunitleasedonecopier. These
leases ended in OcWber 2016. Total 2016 paymenfs for these leases were$16,743 for the primary govemment and
$2,085 for component unit
The Ciry entered inW hvo operating leases dwing 2007 for the leasing of ice time for the Ice Arena witli Independent
SchoolDistrict833andtheCodageGroveAthleticAssociatioa Theleasepaymentsbeganin2008whenthenewice
arenaexpansionprojectopened. ThefutureminimumannualleasepaymentstliattlieCirywillreceiveareasfollows:
78
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATIMENCS
December 31,2014
Independent CottageGrove
YearEnded SchoolDistrict Athletic
December3l 833 Association
2016 $ 104,250 $ 400,000
2017 1M,250 40Q000
2018 104,250 400,000
2019 104,250 400,000
2020 104,250 400,000
2021-2025 521,250 2,000,000
2026-2079 417,000 1,519,000
Note 17 COMMITTED CONPRACTS
At December 31,2016,tlie Ciry had commitrnents of$1,755,142 for uncompleted construction contracts.
Note 18 CONDUIT DEBT OBLIGATIONS
The Ciry has issued Industrial Revenue Bonds W provide financial assishence W private suWr entities for tlie
acquisition and construction ofindustrial and commercial facilities which are deemed W be in the public interest The
bonds are secwed by theproperty financed and are payable solely from payments on the underlying mortgage loans.
Upon repayment ofthe bonds, ownership of tlie acquired facilities transfers W tlie private secWr entiry served by the
bond issue The Ciry is not obligated in arry manner for the repayment of the bonds. Accordingly, tlie bonds are not
reported as liabilities in the accomparrying financial shetemenfs.
As ofDecember 31,2016,a series ofIndustrial Revenue Bonds were oufstanding.
Uianal Issue
Bond Is u� Amowt 12f31/16Balance MaNriNDate
In�strialReven�eBonds-AllivaHealNSys[ems OS/OS/1998 $4,100,000 Notavailable OS/OS/2018
CommeraalDevelopruevtReven�eNot�HSI 12/22/2004 935,000 463,830* 12/Ol/2024
CommeraalDevelopruevtReven�eNot�ESR,Inc 11/22/2005 ]6,500 32,126 11/22/2025
CommeraalDevelopruevtReven�eNot�ESR,Inc OS/19/2005 853,000 511,0]0 12/19/2025
S�bordivateSeniocHo�9vgReven�eBonds-PHS 12/Ol/2006 21,105,000 19,925,000 12/Ol/2046
S�bordivateSeniocHo�9vgReven�eBonds-PHS 12/Ol/2006 8,0]5,000 ],695,000 12/Ol/2046
VariableRzteReven�eBovds-AllivaHealNSys[em 11/Ol/2009 6,100,000 6,100,000 11/15/2022
MiiltifarnilyHo�9vgNot�LegevdsofCottage(3rwe 10/0]/2016 18,422,000 18,422,000 OS/Ol/2034
MiiltifarnilyHo�9vgNot�LegevdsofCottage(3rwe 10/0]/2016 6118000 6118000 OS/Ol/2034
$65J84500 $5926Z026
*Per original conduit debt bond schedule
Note19 PROPERTIESHELDFORRESALE
The Ciry pwchased land in 2010 W be resold W a future industrial occupant in the Ciry's industrial park. The occupant
is notlmown atthis time
The EDA componentunitpwchased land in 2011 W be resold for possible future development The occupant is not
Imown atthis time
79
CITY OF COTTAGE GROVE,MINNESOTA
NOTES TO FINANCIAL STATIMENCS
December 31,2014
The Ciry purohased tlieHome Depotparcel in 2015 W be resold for fuh�re development The Ciry sold this parcel in
2016 for$1,95Q000 W a private developer.
Note20 SUBSEOUENP EVENP
Subsequent W December 31, 2016, tlie Ciry Council authorized the issuance and public sale of$9,155,000 General
Obligation Capital Improvement Plan Bonds, Series 2017A the proceeds of which are W be used in the construction
of a Central Fire Shetion in Cottage Grove. The bonds were issued and dated May 11,2017.
Note 21 NEW STANDARD ISSUED BiIT NOT YET IMPLEVIENTED
GASB has issued GASB StatementNo.75,Accormting m�d FYn�ciol Reprnfing frn Postemploymen[Ber�fiGr Other
thm�Penrions. This new statement requires govemments in all rypes of OPEB plans W present more e�tmsive note
discloswes and required supplemenhery info�rnation (RSI) about OPEB liabilities. This statement is effective for
financial statements for fiscal years beginning atter June 15, 2017.
80
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF WTTAGE GROVE,MINNE90TA
RFQUII2ED SUPPLEMENTARY IlSFORMATION 9GRmeu[9
BUD6ETARY COMPARISON SC£3EDULE-6ENER4I.fTJND Page 1 of 5
For The Year Evded Decanber3l,2016
WithCompvetiveDefeforiheYearEvdedDecanba3l,2015
Venencewith
2016 FmelB�dgeG- 2015
B�dge[edAmow6 Ach�el Positive Ach�el
Onginel Finel Amowfs (Ne¢etive) Amowfs
Revmue
Qenaelpropertytazu:
Cwmtevddelivq�ent $ 12,610,100 $ 12,610,100 $ 12,513,60] $ (36,493) $ 12,018.016
SpuielAssusmmfs 19,500 19,500 5,"]G3 (13,"]9]) 15,"]&]
Licrosu end pamifs�
6mae1 govanmmt "]5,350 "]5,350 8Q225 4,8"]5 86,338
CortvnwiC�develcpmmt S1Q125 1,O1Q125 1,201,04"] 1&],9P2 1,191,916
Evgiveaing - - 9,460 9,460 5,420
PublicsefeLy 29,100 29,100 26,948 (2,152) 21,"]08
TOYzllicrosuendpaxnifs 623,515 1123,515 1,323,680 200,105 1,305,442
Intugovaxvnmtal�.
Federel�
Sefeendsober-p�blicsefeLy P2,000 P2,000 23,296 1,296 9,561
AssistavceYqEv��htasgient-p�blicsefeGy - - - - 4,�A
Bellisticve4�evt-p�blicsefeC� - - 3,T"] 3,T"] 3,836
Misc �L gmerel govaxvnmt - - - - 550
Sfefe�
Locelgovanmmteid "]5,000 "]5,000 "]5,36L 36L "]2,518
MarkeGvel�ehomufeedcredit - - 5,210 5,210 5,1"]1
MSAmeivtmence-p�blicwcrks 42,000 42,000 43,PA5 1,PA5 43,PA5
PER4eid 21,450 21,450 43,613 P2,163 21,448
Firereliefeid-p�blicsefeLy 123,000 193,000 193,2T 2T 191,183
Policereliefeid-p�blicsefeC� Z]Q000 315,000 31Q038 4,038 301,"]25
Consavetiongient-cultweendre¢eetion - 15Q000 15QZT] ZT] P2,135
Otha-p�blicsefeC� 16,000 16,000 3$8ffi P2,8ffi 3Q"]95
Otha-plarming - - 9,"]31 9,"]31 -
Locel�
SROprogiem-p�blicsefeLy "]5,000 "]5,000 "]5,000 - "]5,000
Narmticsotficapro�arn-p�blicsefeC� 4,000 4,000 1,841 (2,159) 653
Otha-p�blicsefeC� 4,000 4,000 9,G']4 1"],G']4 4,689
Otha-p�blicworla - - 1,"]50 1,"]50 18,930
Otha-wlNreendreaeeticn 1Q800 1Q800 14,"]20 ($080) 1$995
TOYzlintg'govaxvnmfel 612,250 931,250 1,01QS11 82,"]9 &l2,658
Charguf services�.
Administretion chargu-gmael govemment
Invutrnentcharge-gmerelgovaxvnmt 13,800 13,800 $691 (5,109) 11,201
O�ha-gmaelgovaxvnmt 300 300 341 41 "]P2
O�her-cortvn�vitydevelcpmmt 35,500 35,500 84,083 4$583 62,815
O�her-mgiveaivg 229,000 P29,000 351,Z]"] 128,ZT] 2Q625
Otlier-p�blicsefeLy 4$500 4$500 53,836 5,336 43,561
O�her-p�blicworks 33,600 33,600 25,518 ($082) PA,459
Otlier-culhseevdre¢eeticn 155,900 155,900 142,809 (13,091) 14"],G']4
TOYzlcher�ufcrsavices S1Q600 516,600 612,555 155,955 551,45]
82
CITY OF WTTAGE GROVE,MINNE90TA
RFQUII2ED SUPPLEMENTARY IlSFORMATION 9GRmeu[9
BUD6ETARY COMPARISON SC£3EDULE-6ENER4I.fTJND Page2 of 5
For The Year Evded Decanber3l,2016
WithCompvetiveDefeforiheYearEvdedDecanba3l,2015
Venencewith
2016 FmelB�dgeG- 2015
B�dge[edAmow6 Ach�el Positive Ach�el
Onginel Finel Amowfs (Negetive) Amowfs
Revm�e:(ecntin�ed)
Finesevdfcrfei6-p�blicsefeC� $ 1"]$000 $ 1"]5,000 $ 19Q360 $ 21,360 $ 9Q802
InvutrnmteemingsQoss) 6Q000 6Q000 51,980 ($020) 6Q2S]
Dcneticns�.
Dcneticns-p�blicsefeLy - - 4,418 4,418 13,"]50
Dcneticns-culhseevdre¢eeticn $000 5,000 2,"]"]5 (2,22� QOP2
TOYzldcneticns $000 5,000 "],193 2,193 1Q"T12
Miscelleveo�s�.
O�her-gmaelgovaxvnmt 133,685 133,685 106,858 (ffi,8Z]) 14Q619
Otlier-p�blicsefeC� 12,000 12,000 31,589 25,589 25,010
Other-p�blicworks - - 21,543 21,543 12,963
O�her-culh�reend�erneeticn 400 400 159 (PA1) 345
Tohvlmiscelleneo�s 14Q085 146,085 16Q149 20,061 1"]$99]
TOYzlrevm�es 14,828,ll0 15,593,ll0 16,01"],198 4PA,088 15,Z18,PA8
Fx.pmdiWres:
6enael govemment
Meycr evd city mwcil�.
Perscnelsavicu 4Q050 4Q050 3$942 1,108 3$S42
Cortvnoditiu 1,200 1,200 6ffi S14 9ll
CcnhacWelsavices "]3,950 "]3,950 91,"]9 (1"],"]"]t) 51,551
TOYzlmeycrendcitymwcil ll$200 ll5,200 131,289 (1Q089) 91,40.h
Admmistretive
Perscnelsavicu ffi6,300 335,635 353,"]33 (1$098) 333,846
Cortvnoditiu 1,550 1,550 496 1,054 1,699
Ccnhach�elsavices 10,535 10,535 11,426 (891) 11,566
Tofeledmivishative Z18,385 34"],"]20 365,655 (1"],93� 34"],tll
Finance
Pascnelsavicu SOQ200 SOQ200 4"]QTO 29,490 493,885
Cortvnoditiu 2,500 2,500 "]51 1,"]49 9ll
Ccnhach�elsavices 43,025 43,025 3"],393 5,632 34,134
Tofelhvence 554,"]25 554,"]25 51"],854 36,8"]1 528,930
Pasormel
Pascnelsavices 145,500 llQ835 ll"],PAO (6,40� 10.h,568
Cortvnoditiu 200 200 - 200 "]6
CcnhacWelsavices 11,025 llp25 14,G']9 (3,054) 36,340
TOYzlpasonvel 156,"]25 1P2,060 131,319 (9,259) 140,9&!
Rofusicnel services�.
CcnhacWelsavices 15$600 155,600 151,345 (1,"]4� 153,PA8
City de�k/eluticns:
Perscnelsavicu 161,"]00 13QG35 145,181 (15,14� 144,181
Cortvnoditiu 2,300 2,300 "]20 1,580 5&]
CcnhacWelsavices 1$&]5 15,&]5 18,909 (3,034) 13,112
TohvlCityde�k/elutions 182,&]5 148,90 161,8ID (16,600) 151,880
83
CITY OF WTTAGE GROVE,MINNE90TA
RFQUII2ED SUPPLEMENTARY IlSFORMATION 9GRmeu[9
BUD6ETARY COMPARISON SC£3EDULE-6ENER4I.fTJND Page3 of 5
For The Year Evded Decanber3l,2016
WithCompvetiveDefeforiheYearEvdedDecanba3l,2015
Venencewith
2016 FmelB�dgeG- 2015
B�dge[edAmow6 Ach�el Positive Ach�el
Onginel Finel Amowfs (Negetive) Amowfs
Fx.pmdiWres:(contiwed)
(3evael govemment(ecntin�ed)
Legal
CcnhacWelsavices $ 19Q950 $ 19Q950 $ 19Q160 $ ($210) $ 9$&!3
CommwiC�evd employee progiems�.
Perscnelsavicu 3,600 3,600 2,350 1,250 2,852
Cortvnoditiu 500 500 580 (80) 42
CcnhacWelsavices SQ"]30 SQ"]30 52,2&! "],446 63,56]
Totalcommwityendanployeepro�ams 63,830 63,830 5$214 $616 66,461
(3ovemmmtb�ildivgs�.
Pascnelsavicu 1ffi,900 1ffi,900 13"],T9 (1Q819) 8Q"]41
Cortvnoditiu 16,010 16,010 2$663 (12,593) 35,"]58
Ccnhach�elsavices 292,295 292,295 282,096 1Q199 293,390
Tofelgovaxvnmtb�ildings 43$265 435,ffi5 44$4"]8 (13,213) 40Q889
HisYcricpresaveticn�
Pascnelsavicu 11,000 11,000 Q438 1,56L 900
Cortvnoditiu 250 250 40 210 49
Ccnhach�elsavices 500 500 ll"] 383 850
TofelhisYcricpruaveticn 11,"]50 11,"]50 $595 2,155 1,"]99
Tofelgmaelgovaxvnmt 2,14$305 2,145,310 2,18QT9 (3$409) 2,1P2,549
Cortvn�viLyDevelcpmmG
Planning and zcning:
Pascnelsavices 292,200 292,200 306,8G'] (14,60]) 29$255
Cortvnoditiu 1,000 1,000 2,299 (1,299) 99]
CcnhacWelsavices M,985 M,985 42,168 2,81"] 29,108
TOYzlplemivgendzcning 338,185 338,185 351,Z14 (13,089) 328,360
B�ildivg ivryedicns�.
Perscnelsavicu 461,800 44Q800 441,646 $154 431,4&]
Cortvnoditiu $250 $250 6,988 1,26L Q113
Ccnhach�elsavices 86,930 101930 108,916 (6,98� 89,2G3
Tofelb�ildivgivspections 559,980 559,980 551,550 2,430 535,8G3
Engmeamg
Pascnelsavicu 14"],"]00 14"],"]00 1"]3,ffi9 (25,569) 153,"]&!
Cortvnoditiu 1,900 1,900 1,986 (8� S18
Ccnhach�elsavices 45,815 45,815 33,681 12,134 39,612
Tofelmgiveaing 195,415 195,415 208,936 p3,52p 19h,3"]4
TofelcortvnwiC�develcpmmt 1,093,580 1p93580 t,ll"],"]60 (PA,180) 1,058,53]
P�blicsefeC��.
Policeprotection:
Pascnelsavices 5,216,340 5,96,340 S,PA$S45 (32,60� 4,812,418
Cortvnoditiu 281,450 281,450 28Q013 1,43"] 269,3"]8
CcnhacWelsavices 4M,100 4M,100 462,SZ] (1$4Z]) 438,318
Cepifelo�tley 182,500 182,500 1FA,"]82 (2,282) 196,3PA
TOYzlpoliceprotection 6,1PA,390 6,1PA,390 6,1"]6,26] (51,87]) S,T6,438
Fveprotection:
Perscnelsavicu 6]$100 6]$100 "]3Q29] (61,19]) 632,451
Cortvnoditiu "]$"]80 "]$"]80 54,828 23,952 6Q49]
Ccnhach�elsavices PA1,S40 PAt$40 PA4,582 (2,642) 230,128
TofelhreproGction 998,820 998,820 1,G38,"]0] (39,8&]) 923,G']6
Fverelief
CcnhacWelsavices 123,000 193,000 193,481 (481) 196,512
84
CITY OF WTTAGE GROVE,MINNE90TA
RFQUII2ED SUPPLEMENTARY IlSFORMATION 9GRmeu[9
BUD6ETARY COMPARISON SC£3EDULE-6ENER4I.fTJND Page4 of 5
For The Year Evded Decanber3l,2016
WithCompvetiveDefeforiheYearEvdedDecanba3l,2015
Venencewith
2016 FmelB�dgeG- 2015
B�dge[edAmow6 Ach�el Positive Ach�el
Onginel Finel Amowfs (Negetive) Amowfs
Fx.pmdiWres:(contiwed)
Public sefeGy:(ecntin�ed)
EmaB�9'PrePereMus:
Perscnel savicu $ 3Q900 $ 3Q900 $ 16,29] $ 14,6G3 $ Zl,"]00
Cortvnoditiu 100 100 4,1"]6 (4,G']� 1,"]00
CcnhacWelsavices 4$345 45,345 29,900 1$445 28,619
TOYzI civil defmse "]Q345 "]6,345 SQ3"]3 25,512 5$049
Mvnelecntrol�.
Perscnelsavicu 15,0.h5 15,0.h5 14,633 412 14,600
Cortvnoditiu 3,"]00 3,"]00 3,1T 529 3,808
Ccnhach�elsavices 20,900 20,900 Q198 11,"]02 1Q5ffi
Tofelenimelecnhnl 3Q645 3Q615 Z1,002 12,643 28,934
Tofelp�blicsefeLy "],362,200 "],432,200 "],48$830 (53,630) Q923,009
P�blicworks:
Publicwcrla edmivistreticn�
Pascnelsavices 29$400 29$400 313,884 (15,4&!) 292,351
Cortvnoditiu P2,225 P2,P25 16,809 5,416 16,544
Ccnhach�elsavices 162,615 162,615 151,490 11,185 142,536
Tohvlp�blicworksedmivishatiov 483,300 483,300 482,183 1,11"] 451,431
Streefs
Perscnelsavicu 615,200 615,200 631,3P2 (P2,1P2) 582,552
Cortvnoditiu 30Q250 30Q250 221,065 "]Q185 233,916
CcnhacWelsavices 31Q420 31Q420 336,329 43,091 381,66]
Cepihvlo�tley $000 9,000 8,598 402 6,239
Tofel s[ree6 1,3G3,8"]0 1 3G3,&]0 1,203,314 100,556 1,20.h,3"]4
Svowendiceconhnl�.
Pascnelsavices 20Q800 20Q800 161,"]21 3QG']9 135,820
Cortvnoditiu 285,825 285,825 P25,141 6Q6&! 20Q833
Ccnhach�elsavices 146,000 146,000 15$465 (12,46� 98,318
Cepihvlo�tley 5,000 5,000 11,T2 (6,T2)
Tofelmowevdiceccnhnl 631,625 631,625 551,G39 80,586 434,511
StreeGsi�shtripmg:
Pascnelsavices 11Q100 llQ100 llQ062 QG38 115,063
Cortvnoditiu 33,530 33,530 42,011 ($481) 33,G'T]
Ccnhach�elsavices SQ250 SQ250 33,000 26,250 61,9ll
Cepifelo�tley 5,899
TOYzIs[reeLsi�x/shipivg 91.880 91880 185,G']3 26,80] 218,950
Tohvlp�blicworks 2,63Q615 2,636,615 2,4Z1,609 209,066 2,309,"]ffi
85
CITY OF WTTAGE GROVE,MINNE90TA
RFQUII2ED SUPPLEMENTARY IlSFORMATION 9GRmeu[9
BUD6ETARY COMPARISON SC£3EDULE-6ENER4I.fTJND PageS of 5
For The Year Evded Decanber3l,2016
WithCompvetiveDefeforiheYearEvdedDecanba3l,2015
Venencewith
2016 FmelB�dgeG- 2015
B�dge[edAmow6 Ach�el Positive Ach�el
Onginel Finel Amowfs (Negetive) Amowfs
Fx.pmdiWres:(contiwed)
C�IWre end reaeeticn:
Fores[ry
Perscnelsavicu $ 93,560 $ 93,560 $ 115,413 $ (21,853) $ 106,9ll
Cortvnoditiu 1Q450 1Q450 6,8Z] 12,623 "],512
CcnhacWelsavices 9$290 99,290 238,610 (19,380) 206,515
TOYzI f utry 332,300 332,300 360,9ID (28,610) 320,998
Re¢eetion pro�ams�.
Perscnelsavicu Z11,600 Z11,600 266,1"]8 5,4P2 254,209
Cortvnoditiu Q850 Q850 5,165 4,685 5,9ffi
Ccnhach�elsavices 88,105 88,105 68,484 19,69 81,40]
Tofel�erneeticnprogiems 369,555 369,555 339,8Z] 29,"]28 341,542
Parlameintmevice
Pascnelsavices "]62,860 "]62,860 "]84,986 (P2,12� "]13,4"]4
Cortvnoditiu 182,600 182,600 13$904 43,696 153,854
Ccnhach�elsavices 302,610 302,610 31"],564 (14,854) 282,325
Cepihvlo�tley 1Q000 185,000 14$"]92 36,208 P2,135
Tohvlparlameintmence 1,25$130 1,433,130 1,39QPA6 42,8&! 1,1"]1,828
TOYzlculhseevdre¢eeticn 1,959,985 2,134,985 2,090,983 M,002 1,834,368
TOYzl�.pmdih�res 1$191,"]45 15,442,"]50 1$302,901 13Q849 14,PA$189
Reven�esover(wd)ezpmdiWres (36Q63� 15Q360 T4,29] 563,93] 1,03Q059
Otha Crvevcivg sourcu(su)�.
Trensf GomSpecielReven�eFwd - - 5,000 5,000 4Q020
Trensf fromEvtapnseFwd 525,T0 525,T0 52Q"]13 (4,99]) 48$690
Trensf WDebLSaviceFwd - - (ll5,388) (115,388) (40.h,5P2)
Trensf WSpecielRevm�eFwd - (tOQ000) (tOQ000) - -
Trensf WCepifelProjutF�vd (612,31� (612,315) (83"],212) p61,83]) (412,95p
Tohvlo�hahvencingsowces(�ses)�. (14Q66� (PA6,665) (526,8&]) (280,2P2) (288,"]63)
NeLiv¢eere(dernees)ivfwdbelevce $ (S1Q300) $ (96,305) 1&],410 $ 283,T5 "]41,296
Fwdbelence-Seweryl 1q2S3,43] $512,141
Fwdbelence-Decemba3l $ 10,440,84"] $ 10,253,43]
86
City�Cottage Gcove
6NeiuleolCity'sPa'opm'timate6Fm'e
oIIVe[Pmvm�L'ubJity
Gmaal Employea'R�'e�m[Fwd
La4 ie�Y�rs
City's
e�opo�aooare
ShareoftlieNet Ciry's
sta[e's e�siov Liabtiliry Ropoetiovare
Qry's Ciry's RopoNovare ae�dtlie5ta[e's ShareoftlieNd
Ropoetiovae Ropoetiovare Share(Amo�vt) Pmpoetiovae P�aovliabiliry PIae�Fid�dary
Share Share(Amo�vt) oftlieNa ShareoftlieNet (esssa)as NetPositiovaza
(Peaev2g)of oftlieNa Pevsiovliability P�siovLiablility Pac�tageofitx Puc�tageoftlie
ForFiscalYear tlieNdPevsiov PevsiovLiability Asmo9edwitli Asmaatedwitli Qty'sCovued- Covued- TotalPevsiov
Evdedlwe3q Liabitiry(wsset) (esssa) tlieary tlieciry EmployeePayroll EmployeePayroll Iiabiliry
2016 O.OS18% $ "],12$925 $ 4$058 $ "],221,983 $ $44"],306 13258% 6891%
2015 0.0919% $ 4,"]62"]35 $ - - $ $401,220 8818% "]8l9%
No2 SchedWeis ivtevded m show tmyear trevd.Additioval y�rs will be�eported az tliey bemme available
6NeiuleolCity'sPa'opm'timate6Fm'e
oIIVe[Pmvm�L'ubJity
Pubtic Employ�sPotiraaud F've 8em'e��[Fwd
La4 ie�Y�rs
City's
RopoNo�aze
ShareoftlieNet
Ciry's P�siovLiabiliry PIae�Fid�dary
Gry'saoeomoo aoeomoozre (wssee)zsz Neeeosleoozsz
oftlieNd ShareoftlieNd Pac�tageofi6 Peaev2geoftlie
ForFlscalYear PevsiovLiabiliry PevsiovLiabiliry Ltiry'sCovued- Covaed-Employee TotalPevsiov
Evdedlwe3q (esssa) (esssa) EmployeePayroll Payroll Iiabiliry
2016 04450% $ 1"],81$S14 $ 4,284586 415b8% 6388%
2015 04340% 4,931,256 $Y]q895 12419% 8661%
No2 SchedWeis ivtevded m show tmyear trevd.Additioval y�rs will be�eported az tliey bemme available
8]
City of Cotbige Grove
Schednle of City Contribntions
General Employees RetirementFnnd
LastTen Years
Covtrib�tiovs iv
Rela[iov to tlie Covtrib�tiovs as a
FiscalYear 8ta[�torily 3taNtorily Covhib�tiov Percevtageof
Evdivg Req�ired Req�ired Deficievcy City's Covered- Covered-
December3l, Covhib�tiov Covhib�tiovs (Excess) EmployeePayroll EmployeePayroll
2016 $ 424,202 $ 424,202 $ - $ 5,656,027 7.5%
2015 $ 403,964 $ 403,964 $ - $ 5,401,220 7.5%
Note: 3ched�le is ivtevded to show tev year hevd.Additioval years will be reported as they become available.
Schednle of City Contribntions
Pnblic Employees Police and Fire Retirement Fnnd
LastTen Years
Covtrib�tiovs iv
Rela[iov to tlie Covtrib�tiovs as a
FiscalYear 8ta[�torily 3taNtorily Covhib�tiov Percevtageof
Evdivg Req�ired Req�ired Deficievcy City's Covered- Covered-
December3l, Covhib�tiov Covhib�tiovs (Excess) EmployeePayroll EmployeePayroll
2016 $ 718,936 $ 718,936 $ - $ 4,437,877 162%
2015 $ 664,300 $ 664,300 $ - $ 4,100,617 162%
Note: 3ched�le is ivtevded to show tev year hevd.Additioval years will be reported as they become available.
88
City of Cottage Grove
Schednle of City Conh�ibntions
and Non-employer Contribnting
Entities-Fire Relief Association
2014 2015 2016
Employer
8ta[�torily detertnived covhib�tiov (8DC) $ - $ - $ -
Covhib�tiov in rela[iov to the 8DC 5,155 5,329 5,265
Covhib�tiov deficievcy(excess) $ (5,155) $ (5,329) $ (5,265)
Nov-employer
2%aid $ 177,804 $ 191,183 $ 195,271
Coveredemployeepayroll v/a v/a v/a
Covhib�tiovsasapercevtageofcoveredemployeepayroll v/a v/a v/a
The City implemevted tlie provisiovs of Govemmevtal Acco�vtivg 3tandards Board 8ta[emevtNo. 68 for the year evded
December 31,2015.The sched�les withiv the Req�ired 3�pplemevtazy Ivfonna[iov sectiov req�ired atev-yearpresevta[ioq b�t
does vot req�ired rehoactive reportivg. Ivfortna[iov prior to 2014 is vot available.Additioval years will be reported as they
become available.
89
City of Cottage Grove
Schedule of Changes in NetPension Liability
and Related Ratios-NSre Relief Association
MeasurementDate
2014 2015 2016
Total pension liabiliry(TPL)
Servicecost $ 77,691 $ 79,827 $ 109,062
Interest 85,148 8$550 85,750
Differences behveen exputed and actual experience - - -
Changesofassumptions - 77,6ll (13Q240)
Changesofbenefitte�rns - 139,930 -
Benefitpayments,includingrefundsormembercontributions (84,321) (14Q973) (295,760)
Net change in Wtal pension liabiliry 78,518 244,945 (231,188)
Beginning ofyear 1,274,449 1,352,967 1,597,912
Endofyear $ 1352967 $ 1597912 $ 136677A
Plan fiduciazy netpension(FNP)
Contributions- employer $ 5,155 $ 5,379 $ 5,265
Contributions-non-employer 177,8M 191,183 195,271
Netinvestrnentincome 98,130 (117,642) 146,660
Benefitpayments,includingrefundsofinembercontributions (84,321) (14Q973) (295,760)
Administrativeexpense (11,193) (15,165) (12,139)
Other (23,403) 210
Netchangeinplanfiduciazynetposition 162,172 (77,268) 39,507
Beginningofyear 2,242,56{ 2,404,881 2,327,613
Endofyear $ 2404736 $ 2327613 $ 2367120
Netpension liabiliry (1VPL) $ (1,051,769) $ (729,701) $ (1,000,39�
Plan fiduciazy net position as a percentage of the Wtal
pension liabiliry 177J% 145J% 173.2%
Coveredemployeepayroll n/a n/a n/a
Netpension liabiliry as a peroentage of covered payroll n/a n/a n/a
The Ciry implemented theprovisions of Govemmental Accounting Standards Board StatementNo. 68 for theyear ended
December 31, 2015.The schedules within the Required Supplementazy Info�rnation section required a ten-year
presentatioq but does notrequired retroactivereporting. Info�rnation prior W 2014 is not available.Additional years will
bereported as they become available
90
atyo[conaqec�oosrvr�or,
Requ'ved Supplemurtary IMormation
Fw�gRogcus Schedde
OMu Post Employment Hea1M Care Benefits
Decembu 31,2016
AcNarial UAAL as a
AcNarial Accrued Pacentage
AcNarial Valueof liability Un(wded Fwded Cwered ofCwered
Val�atiov Assets (AAL) AAL Ratio Payvoll Payvoll
Date (a) (6) (6-a) (a/b) (c) ((6-a)/c)
1/1/2014 - $ 324,523 $ 324,523 - $ 9,�65,�00 330%
1/1/2011 - 108,198 108298 - 8,88],000 120%
1/1/2008 - 146,59] 146,59] - 8,�SOy00 1J0%
91
-TMs Page Intentiortally left Blank -
ez
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
93
-TMs Page Intentiortally left Blank -
ea
NONMAJOR GOVERNMENTAL FUNDS
es
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of specific revenue sources trtat
ue legally restdcted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds ue usedto account for the accumulation ofresources for, and payment
of,interest,principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
The Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
es
CITY OF COTTAGE GROVE,MINNESOTA
COMBINING BALANCE 3HEET S�tement 10
NONMAJOR GOVERNMENTAL FUNDS
December 31,2016
W ith Compaa[ive Da[a as of December 31,2015
Totals
Nonmajor
8pecial Debt C�ital Govemmevtal Fhvds
Revev�e 3ervice Project 2016 2015
Assets:
Cash ar�d investrnevls $ 287,274 $ 1,042,801 $ 16,446,962 $ 17,777,037 $ 15,054,522
Inte�fuvdreceivable 332,850 - 1,861,303 2,194,153 1,221,111
Inte�fuvd loan receivable - - 2,645,804 2,645,804 2,261,758
D�efromothergovemmevtal�vits-vet 26,565 - 900,725 927,290 84,166
Accowtsreceivable-vet 317,023 - 166,465 483,488 565,071
Prepaid items 5,723 - - 5,723 7,343
Invevtories-a[cos[ 28,750 - - 28,750 20,696
Delinq�entpropertytaa:esreceivable 2,661 - 103 2,764 2,793
8pecial assessmevts receivable:
Defeaed - - 2,196,978 2,196,978 1,129,114
Delinq�ent - - 6,220 6,220 101
Property held for resale 1,950,000
Total assets $ 1,000,846 $ 1,042,801 $ 7A,224,560 $ 26,26$207 $ 22,296,675
Liabilities:
Accowtspayable $ 85,516 $ 925,023 $ 1,546,883 $ 2,557,422 $ 316,318
3alaries payable 69,451 - - 69,451 58,612
Inte�fuvdpayable 332,850 - 1,861,303 2,194,153 1,626,227
Covtrac[spayable - - 49,188 49,188 188,437
D�etootliergwemmental�vils 11,287 - 188,375 199,662 6,160
Deposils payable 7,755 - 1,69$467 1,706,222 387,052
Ivte�fuvdloanpayable 1,145,804 1,145,804 761,758
Totalliabilities 506,859 925,023 6,49Q020 7,921,902 3,344,594
Defwred inflows ofresowces:
Uvavailablerevev�e-propertytaa:es 2,661 - 103 2,764 2,793
Uvavailablerevev�e-specialassessnevls 2,203,198 2,203,198 1,129,215
Total defe�red inflows of reso�rces 2 661 2 203 301 2 205 962 1 132 008
Fund balance:
Novspevdable:
Prepaiditems 5,723 - - 5,723 7,343
Ivvevtay 28,750 - - 28,750 2Q696
Restricted for:
ForfeiNreandseiz�re 23,308 - - 23,308 39,166
Charitablegarnbling 4,457 - - 4,457 9,405
Debtretiremevt - 168 - 168 218,191
Tar.incremevtp�iposes - 117,610 - 117,610 2,042,151
Committed 731,090 - - 731,090 394,204
Assigued - - 17,527,670 17,527,670 16,695,201
Uvassigved (302,002) (1,996,431) (2,29$433) (1,606,284)
Total fuvd balance 491 326 117 778 15 531 239 16 140 343 17 820 073
Total liabilities,defwred inflows ofresowces,
andfuvdbalance $ 1,OOQ846 $ 1,042,801 $ 24,27A,560 $ 26,26$207 $ 22,296,675
9]
CTTY OF COTTAGE GRO�E,MINNESOTA
COMBINING STATENIE�i*T OF REVEN[JES,E�ENDITURES AND Statement 11
CHANGES IN FOND BALANCE
NONMAJOR GOVERNMENTAL F[1NDS
For The Year Ended Decanba 31,2016
With Comparetive Dafa for the Year Ended December 31,2015
Totals
Nmunajor
Spedal Debt Capital CrovemmmtalFwds
Revewes: Rrvmue Savice Project 2016 2015
(3merelpvopatyh es $ 28$60] $ - $ 34 $ 288,641 $ 292,458
Franclilset�es - - 516,931 516y31 SPb,b13
Aggregatet es - - 39,�48 39,�48 3],133
Taeivcremevtmllections - 313,000 463,061 �]6,061 �10,541
Specialassessnml� - - 603,661 603,664 13]y55
D'vec[charges to developas - - 2�],86J 2�],860 30],9]1
Intagwaxunerdal 134,495 565,562 �11yN 1,412,036 151,465
Chargesfovsatiims 3�1.0$519 - 18Q2TI 3�88,�46 3,685,422
Rmt - - 44�,41b 44�,426 -
Fives and forFei6 39y00 - - 39y00 ll,&!0
N�es�ea e�ogs�oss) i,3�c zq�ii �s,io� ioqivo i3a,iov
�eeen��oee�dm� - - 3z,sw 3z,sco as,svv
Comectiovcharges - - 649,4SJ 649,489 318,f92
ParkdeAcatiovfees - - 212,865 212,865 9,010
Otlievsales - - 1,04$8]1 1,048,8]1 4�,454
Dovatio� - - 449,�45 449,�45 358,1A1
NLscellaneous 10692 82�6J 93452 10A�60
Total vrvm�es 3 683 SSJ SJ92]3 5�95 313 109�8,185 �312�3
Expmdilures:
Qurmt
(3evaal gwemmmt - 926,4]3 91 926,564 1,�26
Econortric drvelopmmt - - 2T36,461 2T36,464 1,456,306
Pu6Gcsafety 2$43] - 11�,S�J 146,010 25,119
Pu6Gcworks 525y05 - 1,183,431 1,�09�36 1,146,ffi]
CdNrear�dveaeation 2�44,491 - 151y46 2,496,43� 2,342,�59
Capital o�tlay
(3evaal gwemmmt - - 24,�f9 24,�09 -
Pu6Gcsafety 2�,506 - 61,142 88,648 8]y13
Pu6Gcworks - - 3244,011 3244,01� �49,116
c�nue�a�eae�e� �c,an - aoa,sis aso,s�s scs,�vz
Debtsavice:
Rivcipalvetivanmt - 5,815,000 - 5,815,000 450,000
Capitalleasepa}+nmt 32�,432 - - 32�,432 316,135
Wevestandfiscalcturges 109614 139661 1��6J 36�035 3�J930
Totaleepmdihses 3439842 6981134 �441651 1�86262� �815253
xNe�,es o�e(ae)e yeoa�naes za3�m (e,c�i,sep (i,eae,3ax) (�,asa,aaz) (soz,seo)
Othev fivancivg sources(uses):
'hansfevsiv 1OQ000 54,�22 �]QO15 924,]3� 1,612y51
n�ee�so�e (aqo�v) - (is,zaa) (ss2az) (i,39s5ia)
soo��ss�ed - a,eeq000 - a,eeq000 -
Hertriumondebtismed - 259,�64 - 259,�64 -
Hoceedsfiomihesaleofcapitalasse6 15453 15453 531b�
Tord ome eo�dog�ow�e����e�� sv9si a ma ase no zas s soa�iz zc�3oa
Nn���ea�e�ae�aa�e��o�an���e 3o3,ns �i,im3�s� �s�e,os�� �i,e�v,no� �aas,zse�
FLndbalance-Jarwazyl 18]598 1225153 1640]322 1�8200IJ 18055329
FLndbalance-Decanba3l $ 491,31b $ 11�,�]8 $ 15,531,239 $ 16,140�43 $ ll,820,0'TJ
98
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds ue used to account for the proceeds of specific revenue sources trtat
ue legally restdcted to expenditures for particulu purposes. The City maintained the
following Special Revenue Funds during the yeu:
Recvcline — Established to account for recycling advertising promotion, and
capital expenditures.
Storm Water Maintertance—Established to account for the receipt of storm water
fees to be used for storm water maintenance activities.
Forfeiture/Seizure —Established to account for Police Deputment proceeds from
property seized under MS 609.53.
Ice Arena Fund—Established to account for operating the City's ice uena.
Golf Course Fund—Established to account for the City's eighteen hole golf course
and banquet facility.
Cktaritable Gambline — Established to account for the 3% tax on cktaritable
gambling operations.
ee
CITY OF COTTAGE GROVE, MINNESOTA
SUBCOMBRVINGBALANCE SHEET
NONMAJORSPECIAL REVENUE FUNDS
December31,2016
With ComparativeDahe as ofDecember 31,2015
SW�rn
Water ForFeiturel
Recycling Maintenance Seizwe
AssGs:
Cash and investrnents $ 7Q511 $ 17$863 $ 33,443
Inte�fundrueivable - 332,850 -
Due from other gove�nmenhel units-net - - -
Accountsrueivable-net - 12Q534 -
Prepaid items ' ' '
InvenWries-at cost - - -
Delinquentproperty taees rueivable
Total assGs $ 7Q511 $ 632,7A7 $ 33,443
Liabilities:
Accountspayable $ 12,419 $ 1,323 $ 1Q135
Salariespayable 569 16,770 -
Inte�fundpayable - - -
Contracts payable - - -
Due W other govemmental units - 137 -
Deposits payable
Tohel liabilities 12,988 18,230 1Q135
Defe�red inflows ofresowces:
Unavailable revenue-property taees
Tohel defe�red inflows ofresowces
Fund balance:
Nonspendable:
Prepaid items ' ' '
InvenWry ' ' '
Restricted for:
ForFeiture and seizure - - 23,308
Charitablegambling - - -
Committed for:
Icearena - - -
SW�rnwateractivities - 614,017 -
Recyclingprogram 57,523 - -
Unassigned
Total fund balance 57,523 614,017 23,308
Total liabilities, defe�red inflows ofresowces,
and fund balance $ 7Q511 $ 632,7A7 $ 33,443
100
Statement 12
Totals
Nonmajor
Ice Golf Charitable SpuialRevenueFunds
Arena Cowse Garnbling 2016 2015
$ - $ - $ 4,457 $ 287,274 $ 344,057
- - - 332,850 -
26,565 - - 26,565 34,495
196,489 - - 317,023 321,490
605 5,118 - 5,723 7,343
- 28,750 - 28,750 2Q696
2,661 2,661 2,663
$ 226,320 $ 33,868 $ 4,457 $ 1,OOQ846 $ 730,744
$ 31,M1 $ 3Q598 $ - $ 85,516 $ 55,633
21,502 3Q610 - 69,451 5$6�V2
106,816 226,034 - 332,850 405,116
- - - - 833
4,145 7,005 - 11,287 5,511
7 755 7 755 14 748
163,SM 302,002 506,859 540,483
2,661 2,661 2,663
2,661 2,661 2,663
605 5,118 - 5,723 7,343
- 28,750 - 28,750 2Q696
- - - 23,308 39,166
- - 4,457 4,457 9,405
SQ550 - - SQ550 -
- - - 614,017 337,614
- - - 57,523 56,590
�soz,00z� �soz,00z� �zss,zi�
6Q155 (26$134) 4,457 491,326 187,598
$ 226,320 $ 33,868 $ 4,457 $ 1,OOQ846 $ 730,744
101
CITY OFCOTTAGEGROVE, MINNESOTA
SUBCOMBRVING STATIMENC OF REVEN[JES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJORSPECIAL REVENUE FUNDS
For The Year Ended Duember 31, 2016
W ith Comparative Dahe for the Year Ended December 31,2015
SW�rn
Water ForFeih�re/
Recycling Maintenance Seizure
Revenues:
General properly hexes $ - $ - $ -
Intergovemmental:
Local:
Washingtoncounry 77,495 - -
School district - - -
Ofher ' ' '
Charges for services - 756,126 -
Fines and forFeits - - 39,900
Investrnenteamings Qoss) 340 799 185
Miscellaneous 3,500
Total revenues 81,335 756,925 40,085
Expendih�res:
Cmrent
Public safery ' ' 28,437
Publicworks 8Q402 445,503 -
Culture and rureation - - -
Capital outlay:
Publicsafery - - 27,506
Public works - - -
Qilture and rureation - - -
Debt service:
Capihelleasepayment - - -
Interest and fiscal charges
Total expendih�res 8Q402 445,503 55,943
Revenues over(under) expendih�res 933 311 422 (15,858)
Other fmancing souroes (uses):
Transfer from General Fund - - -
Transfer from Capital ProjectFund - - -
Transfer W General Fund - (35,019) -
Transfer W Capital ProjutFund
Total other fmancing sowces (uses) (35,019)
Netincrease(decrease)infundbalance 933 276,403 (15,858)
Fundbalance-Januazyl 56,590 337,614 39,166
Fundbalance-December3l $ 57,523 $ 614,017 $ 23,308
102
Statement 13
Tofals
Nonmajor
Ice Golf Charitable SpuialRevenueFunds
Arena Cowse Garnbling 2016 2015
$ 288,607 $ - $ - $ 28$607 $ 291,955
- - - 77,495 82,494
57,000 - - 57,000 57,000
- - - - 6,493
987,895 1,46�V,498 - 3,20$519 3,062,368
- - - 39,900 17,840
- - 52 1,376 2,558
14 7,178 1Q692 7,979
1,333,516 1,471,676 52 3,683,589 3,528,637
- - - 28,437 23,683
- - - 525,905 521,748
751,835 1,592,656 - 2,344,491 1,998,951
- - - 27,506 8,495
- - - - 12,215
27,446 49,011 - 76,457 255,666
79Q000 37,432 - 327,432 316,235
108,846 768 109,614 225,258
1,178,127 1,679,867 3,439,842 3,362,251
155,389 (20$191) 52 7A3,747 166,386
- 100,000 - 100,000 -
- - - - 1,200,000
- - �s,000� �aqoi9� �ao,ozo�
�iss,s�a�
ioo,000 �s,000� s9,9si i,00i,ose
iss,ss9 �ios,i9i� �a,�as� sos,�zs i,ib�,a�z
�9s,zsa� �is9,�as� 9,aos is�,s9s �9�9,s�a�
$ 6Q155 $ (268,134) $ 4,457 $ 491,326 $ 187,598
103
NONMAJOR DEBT SERVICE FUNDS
The Debt Service Funds ue used to account for the accumulation of resources for, and payment
of,interest,principal and related cosTs on long-term debt.
The City's Debt Service Funds account for three Types of bonded indebtedness:
• Improvement Bonds
• Refunding Bonds
• Tax Increment Bonds
Develooer Firtanced Revolvine — (2008A Improvements Bonds) w e r e refinanced in
2016.
Refundine Bonds — these General Obligation bonds were issued to refirtance the 2008A
Improvement bonds and to provide funds to pay off the Capital Lease-purcktase agreement
with the EDA for the expansion of the Ice Arerta. These bonds will be repaid using special
assessments from new developments, a general tax levy and dedicated revenues from the Ice
Arena.
Tax Increment — 1985 Tax Increment Bonds (TIF 1-1), 2004A Tax Increment Refunding
Bonds (TIF 1-3), 2004A Tax Exempt Increment Bonds (TIF 1-12), and 2014A Taxable Tax
Increment Refimding Bonds (TIF 1-12) ue repaid primarily from taxes increments.
�oa
CTTY OF COTTAGE GRO�E, MINNESOTA
SUBCOMBININQ BALINCE SHEET Shtementl4
NONMAJORDEBT SERVICE FONDS
Decem6er31,2016
With Comparative Data as ofDecanber 31,2015
Totals
Devdoper G.O.Refimding Nomnajor
Financed Bondsof T�Incremmt De6tServiceFwds
Revol4ing Fwds 2016A Fwds 2016 2015
Assets:
Cashandiwestrnevl� $ $ 168 $ 1042633 $ 1042801 $ 1225153
Total assets $ $ 168 $ 1,042,633 $ 1,042,801 $ 1,225,153
Liabilities:
Accowl�payable $ $ $ 925023 $ 925023 $
Totalliabilities $ $ $ 925 023 $ 925 023 $
Fwd balance:
Restricted for:
Debtvetivemevt $ - $ 168 $ - $ 168 $ 218,191
Tae ivcvemevtpuryoses 11�610 11�610 1,006y62
Total!wd balance 168 11�610 11��]8 1225 153
Totallwdbalance $ $ 168 $ 1,042,633 $ 1,042,801 $ 1,225,153
105
CITY OF COTTAGE GROVE, MINNE90TA
SUBCOMBIlSIlS6 STATEMENT OF REVENUES, 9GRmaR15
EXPENDTTURES AND CHAN6E5 IN FUND BALANCE
NONMASORDEBT SERVICE FUNDS
For The Year Evded Decanber3l,2016
WithCompvetiveDefeforiheYearEvdedDecanba3l,2015
Tofals
Develcper 6.0.Retuvdivg Tex Nrnvnejcr
Fivenced Bondsof Incranent DebLSaviceFwds
RevolvingFwds 2016A Fwds 2016 2015
Reven�es
Tezina'anentmlledions $ - $ - $ 313,000 $ 313,000 $ -
Intugovemmental - 565,562 - 565,56L -
InvutrnenteemingsQoss) 14,930 5,"]81 20,T1 1Q823
TOYzlrevm�u 580,492 318,"]81 899,Z13 tQ823
Fx.pmdih�res�.
GurmG
6mere1 govaxvnmt
Ccnhach�elsavices - 950 925,523 9ffi,4"]3 1,400
Debtservice
A'incipelreLvanmt 1,09Q000 4,515,000 9Q000 5,815,000 205,000
IntaesLendEscelcher�u 42,854 1PA,15] "]2,610 239,661 81,"]0.h
TOYzlezpmdiWres 1,132,854 4,610,1G'] 1,208,133 6,981,134 288,10.h
Reven�uova(wd)ezpmdiWres (1,132,854) (4,OSQ61� (889,352) (6,081,861) (ZT1,281)
Otha Crvencing so�rces(su)�.
Trensfasiv(o�[) 54,"]P2 - - 54,"]P2 -
Bcnds ismed 825,000 3,835,000 - 4,66Q000 -
Premiwncndebtismed 34,981 �TA,"]83 259,"]61
TOYzlothahvencingso�rces(�su) 914,"]G3 4,OSQ"]83 - 4,514,486 -
Netiv¢eere(dernees)ivfwdbelevce (21$191) 168 (889,352) (1,101,3"]� (2J1,281)
F�vdbelence-Seweryt 21$191 1,OOQ96L 1,225,153 1,502,434
F�vdbelence-Decemba3l $ $ 168 $ 11"],610 $ 11"],"]"]8 $ 1.P25.153
106
NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Fhnds ue used to account for the acquisition and construction of major capital
facilities other than those financed by Proprietuy Funds and Trust Funds.
Eauioment Reolacement Fund—EsTablished to accumulate morues for the replacement
of capital equipment.
Sheet Sealcoatine—Establishedto account for the receipt of francMse fees to be used for
sealcoating activities.
Future Economic Develooment Fund—Established to account for the receipt and use of
monies for economic development purposes.
Future Proiects —to account for the preliminary expenditures of projects wMch do not have a
source of financing.
Completed Construction — to account for the vuious surpluses (deficits) of other Special
Assessment Construction Funds.
Puk Trust—to account for capital projects in new murucipal puks.
Inclusive Plaveround—to account for inclusive playground project.
Puk Caoital Imorovements—to account for capital projects in existing murucipal puks.
Water Connection and Area—to account for water connection and uea chuges.
Sewer Connection and Area—to account for sewer connection and uea cktarges.
Future Storm Sewer Imorovements—to collect storm sewer uea chuges wMch ue designated
for future construction.
Tax Increment Construction Revolvine Fund—to account for construction projects that ue
financed with tax incremenTs.
�o�
CITY OFCOTTAGE GROVE, MINNESOTA
SUBCOMBAIIlSG BALANCE SHEET
NONMASOR CAPTTAL PROSECP FUNDS
December31,2016
With ComparativeDanas ofDecember3l,2015
F�mr
Eq�ipmevt Sxeet Ecovomic F�mve Completed Fark
Replacemevt Sealwanv¢ Developmevt Pmiec[s Covstr�ctior� Tmst
Assets
Cashandivvestmevts $ 1,92Q980 $ 516,056 $ 3,034,"]20 $ 3,814,002 $ 51$592 $ -
Ivtufivdveceivable - - - 962,1"]5 - -
Ivtufivdloanveceivable - - 1,14$804 - 1,SOQ000 -
D�eRomothergovemmevtal�vits-vet - 20$484 - "Tl,"]23 - 11,4"]8
Acco�vtsveceivable-vet - 133,490 - "]84 - Q253
Delivq�ev[pmpertyta:esveceivable - - - 103 - -
Spedalassessmevtxveceivable
Defeaed - - 31,400 124,"]96 4 139,582
Deliv9��[
Pmpertyheldforresale
Total assets $ 1,92Q980 $ 85$030 $ 4,21"],924 $ 4,519,583 $ 2,01$596 $ 151,313
Liabilines:
Acco�vtspayable $ 12$888 $ - $ 654,960 $ 51,925 $ - $ -
Ivtufivdpayable - - - - - 23Q"]02
Covtxac[spayable - - - - - -
D�emothergovemmevtx - - 188,315 - - -
Depositx payable - - - 1,69$216 - -
Ivtufivdloan payable
Totalliabilities 12$888 843,335 1,"]50,141 23Q"]02
Defeaedivflows ofveso�mes:
Uvavalablevevev�e-pmpertyta:es - - - 103 - -
Uvavalablevevev�e-spedalassessmevtx 31,400 124,"]96 4 139,582
Totaldeferzedivflowsofveswrces 31,400 124,899 4 139,582
F�vdbalance
Restric[edfa:
Tarziv¢emev[p�ryoses - - - - - -
Assigvedfor.
Eq�ipmev[veplacemev[ 1,"]92,092 - - - - -
Streetsealcaanvg - 85$030 - - - -
Ecor�omic developmevt - - 3,331,189 - - -
F�mvepavemevtmanagemevt - - - 1,431,412 - -
Tveemitiganov - - - 364,616 - -
F�mveraadsandtrails - - - 510,182 - -
Capitalimpmvemevtx - - - 33$Z13 2,01$592 -
Uvassigved (212,51p
Totalfuvdbalance 1,"]92,092 85$030 3,331,189 3,104,543 2,01$592 (212,51p
Total liabilines,defeaedivflows ofveso�mes,
andfuvdbalance $ 1,92Q980 $ 85$030 $ 4,21"],924 $ 4,519,583 $ 2,01$596 $ 151,313
108
Statv�mt 16
Tarzle�¢emevt Totals
Park Water Sewer F�mve 2016 Covstr�ctiov Novm jor
Ie�d�sive Capital Covvectiov Covvectiov S[oemSewer Impmvemevt Revolvivg CapitalPmjec[F�vds
Play¢m�vd Impmvemevts andAvea andAvea Impmvemevts Pmiem F�vd 2016 2015
$ 86,496 $ 219,654 $ 2,051,4T $ - $ 2,94$"]41 $ - $ 1,333,250 $ 16,446,962 $ 13,485,312
- 23Q"]02 66$426 - - - - 1,861,303 1,221,tll
- - - - - - - 2,645,804 2,261,158
- - 2,320 "]20 60Q000 - - 90Q"]25 49,611
- 2$938 - - - - - 16Q465 243,581
- - - - - - - 103 130
- - 14Q282 8"],582 24$908 1,41$424 - 2,196,518 1,129,ll4
- - 1,334 3,088 1,"]98 - - Q220 101
1 950,000
$ 86,496 $ 4"]6,294 $ 2,8"]$833 $ 91,390 $ 3,"]96,44"] $ 1,41$424 $ 1,333,250 $ 24,224,560 $ 20,34Q"T18
$ - $ 6,161 $ 3,236 $ 2,058 $ 409,8"]6 $ $280 $ 284,499 $ 1,546,883 $ 26Q685
- - - 66$426 - 962,1"]5 - 1,861,303 1,221,tll
- - - - - 49.188 - 49.188 181,604
- - - - - - - 188,315 649
- 251 - - - - - 1,69$46] 312,304
1,14$804 1,14$804 "]61,"]58
6,412 3,236 61Q484 409,8"]6 1,016,643 1,430,303 6,49Q020 2,804,tll
- - - - - - - 103 130
14"],616 9Q610 24"],"]06 1,41$424 2,203,198 1,129,215
14"],616 9Q610 24"],"]06 1,41$424 2,203,301 1,129,345
- - - - - - - - 1,035,189
- - - - - - - 1,"]92,092 1,519,583
- - - - - - - 858,030 650,156
- - - - - - - 3,331,189 3,"T12,549
- - - - - - - 1,431,412 1,431,412
- - - - - - - 364,616 33$495
- - - - - - - 9�0,182 860,691
8Q496 469,882 2,"]24,981 - 3,13$865 - - 8,"T14,089 $062,315
(669,"]64) p,O1Q643) (51,053) p,99Q43p p,323,068)
86,496 469,882 2,"]24,981 (669,"]64) 3,13$865 p,016,64� (51,05� 15,531,239 16,4U1,322
$ 86,496 $ 4"]6,294 $ 2,8"]$833 $ 91,390 $ 3,"]96,44"] $ 1,41$424 $ 1,333,250 $ 24,224,560 $ 20,34Q"T18
109
CIiY OFCOiiAGEGROVE,MINNE50iA
SUBCOMBINING STATEMENT OF kEVENUE;,
EXPENDITUkFS AND CHANGFS IN FUND BALANCE
NONMNOk CAPITALPkOIECT FUNDS
ForTheYearEvded December3l,2016
With Comparative Da2[ortlie Year Evded Decar�ba 31,2015
PoNre
Eq�ipmev[ Stree[ Emvomic F�Nve CompleRd Park
keplacemev[ Sealcoativg Developmev[ Rolec[s Covstr�ctiov Tms[
Rev
Gevual�PmP�Ytarzu $ - $ - $ - $ 34 $ - $ -
Fru¢hisehc:es - 516,931 - - - -
Aggveg9etavu - 39,"]48
Ta:iv¢emev[collectiovs - - - - - -
Spedalasses.m�evcc
C�rz�[ - - 11,65] 3$999 - 43,619
Deliv9��[ 9"]
Repaymev[sovde[erzed - - - - - -
Pevalties 23
DiveRchargesNdrvelopas - 2q43] - 251,423 - -
Iv[ugovertu�evtal�.
srare _ _ _ u�9�v _ _
omer - - - - - -
Charges[orseevices - 18q2Z] - - - -
Rev[
moenm�ee�ms�����) �Ase a,ow 4ssz �4on a3sa -
mre�eoomre�twaio� - - n,�ao - �a,aoo -
Coemec[iov charges - - - - - -
Parkderli�tiovhes - - - - - 212,865
Otliersales - - 11$966 - - -
Dovatiovs Iq000 - 33$834 - - -
Miscellar�eo�s 210 34,41"]
Totalvev��es 1"],456 "]61,35] 489,009 424,492 51,691 256,484
EspevdiNves
Purevt
G�ual govemmev[ 5 - - - 86 -
Ecovortticdrvelopmevt - - 924,369 - - -
Wblic rahry - - - 11";5"Ti - -
Wblicwovkx - 553,483 - 15;984 684 -
C�INveae�dve¢eatiov - - - 31,623 - 12,465
Capitalo�Hay:
Gevual govae�m�[ 24,"]09 - - - - -
Wblic rahry 61,142 - - - - -
Wblicwovkx 421,564 - - - - -
C�Imveae�dve¢eatiov 61,"TTL - - - - "]9,"]4"]
Debtseevice
PnvoPalvetivemevt _ _ _ _ _ _
Iv[ses[ae�d 5sca1 charges
Totale:pevrliNres S]$192 553,483 924,369 30"],180 "T10 92,212
aeo���ooe(�oae)�e�a�m�s (sn,�3a) zo�,a�a (a3s,3ao) �n,3�z so9z� �ea,z�z
Otlier 5var�ovg sowces(�ses)�.
Trm�sfafiomG�ualF�vd "]54,"]92 - - - - -
Trm�s[erfiom CapitalRojec[F�vd - - - - - 1$223
Trm�s[er[o Speoalkevev�eF�vd - - - - - -
r�st�mcae�rde�ie�Fwa - - - Os,zz3) - -
e�o�e�dswm mes�leoeae�rd a�sen �sAs3
rordom�eo�dos�����(��e�) �nqzas Ps,zz3) �s,zz3
Na�o�ase(ae�aze)mt�oan���e z�z,sov zm,a�a (a3s,3ao) �oaoav sqvz� nv,avs
Fwdbalar¢e-]armaryl 1,519,583 65q156 $"J12549 $002454 1,964,611 (392,46�
Fwdbalar¢e-December3l $ 1,"]92,092 $ 85$030 $ $33"],189 $ $104,543 $ 2,01$592 $ 212,Y11
110
Sfa[v�ert ll
Ta:N¢a�ev[ Totals
Park W9a Sewer F�Nre 2016 Covnmctiov Nonmjor
Nd�sive Capital Coemec[iov Coemec[iov SNem Sewer Impmvemev[ krvolvivg CapitalROl�Fwds
Flay¢rowd Impmvemev6 ae�dArea ae�dArea Mpmvemev6 Pmlec[a F�vd 2016 2015
$ - $ - $ - $ - $ - $ - $ - $ 34 $ 503
- - - - - - - 5�493� sx4a43
_ _ _ _ _ _ _ 3v,�4a 3�,�33
- - - - - - 463,061 46$061 "]Iq541
- - 61,60"] 6q492 95,514 206,415 - 51$693 101,19"]
9] 433
- - x4,�n 3&axe x�,xaa - - a4,a5� 34�aa
_ _ _ _ _ _ _ 23 13"]
ZT1,860 30"],Yll
III,Y19
- - - - 600,000 - - 600,000 11,4�8
18422"] 1"]2626
- 44"],426 44"],426 454428
(ae) Z4sa �;a�a - w,a�a - �qaoz �a,�o3 �z4"rza
- - - - - - - 32,560 4$599
- - 211,8"]5 1"]463"] 260,9T] - - 649,489 31$092
212865 9,010
929,905 1,04$Sll 469,454
105,911 449,"]45 35$241
43,�33 s,000 aZ�ao 54s3�
ms,azs 4v3,on 3�zov� z�s,vss vvz�n zoa,4�5 �,4oa,�ea s,�v5,3z3 3,�n�,z33
91 326
- - - - - - 1,312,095 2,236,464 1,454306
11"],513 1,436
- - 34060 1$11"] 42q103 - - 1,183,431 62$149
20,3"]9 51,4"]9 151,946 34$808
24,]09
61,142 "]9,418
- - n4,xa5 - x�;55� �,xx3,osa �,xu,�ss 3,x44,on "�i49o�
- 256,999 - - - - - 404,518 609,526
- - - - - - - - 24$000
1"],"]60 1"],"]60 6"],028
xo,3�5 344,4�a x�q345 �s,�n e34,o54 �,xx3,osa Z54�,o�0 �,44�,a5� 4,�a4,a5a
a5,44e wg535 m�,�4a zeqa3a 35a,�o3 p,me,a43) p,�3z,z4z) p,a4a,3za) (35�,aep
_ _ _ _ _ _ _ �sa,�vz a�dvs�
_ _ _ _ _ _ _ 1;223 -
(1,204000)
Q$223)
1$453 5$26"]
"n4�45 pi;�ax)
as,aae �aa,s3v m�,�aa zeqa3a 3sg�o3 (�,me,ea3) (�,�3z,zaz) (s�4oa3) (�,�zs,aa'�
�,oso 3x�,343 dct3�33 (53qeox) x,�aq�ex �,o35,�a5 �a,4o�,3xx n,sid�a5
a ae,4ve a 4ev,aaz a a�rz49a� a aev,�a4 a 3,�3aae5 a �,me,a43 a v�,os3 a �s,s3�,z3v a �a,4o�,3zz
111
CITY OF COTTAGE GROVE,MINNESOTA
3PECIAL REV EN[JE FUND-RF,(.YCLING S�tenmt 18
BCHEDULE OF REV EN[JE3,EXPENDITURE3 AND
CHANGE3INFUND BALANCE-BUDGETAND ACTUAL
For The Year Evded December 31,2016
W itli Compara[ive Da[afor tlie Year Evded December 31,2015
V ariar�ce wifh
2016 Final Budgeb 2015
B�dgetedAmo�vts AcNal Positive AcNal
Original Fival Amo�vts (Negative) Amo�vts
Revev�es:
Ivtergovemmental:
Local:
WashingtovCo�vlyreryclinggrant-p�blicworks $ 57,140 $ 57,140 $ 77,495 $ 20,355 $ 82,494
Ivvestmevteamivgs(loss) - - 340 340 336
Miscellaneo�s-p�blicwo�ks 20,350 20,350 3,500 16,850 3,500
Total revev�es 77,490 77,490 81,335 3,845 86,330
F�:pevdiNres:
P�blicwo�ks:
C�aevt
Persovalservices 32,700 32,700 33,534 (834) 31,527
Commodities 9,100 9,100 4,349 4,751 10,269
Covtrac[�alservices 43,880 43,880 42,519 1,361 41,886
Capital o�tlay 15,000 15,000 15,000
Total er.pevdiNres 100 680 100 680 80 402 20 278 83 682
Revev�es over(�vder)er.pevdiNres $ (23,190) $ (23,190) 933 $ 24 123 2,648
Fhvdbalance-Jan�azyl 56,590 53,942
Fhvdbalance-December3l $ 57,523 $ 56,590
112
CTTY OF COTTAGE GRO�E,MINNESOTA
SPECIAL REVENUEFOND-STORM WATER MAINTENANCEFOND Shtement 19
SCHEDULEOFREVENUES,EXPENDITURESAND
CHANQESINFONDBALANCE-BUDQETANDACTUAL
For The Year Ended December 31,2016
With Comparative Data for the Year Ended Decanber 31,2015
Van wifh
2016 FivalB�dgft- 2015
BudgetedAmowts AcNal Positive Ac[ual
Origival Fival Amowts (Negative) Amowts
Rev e.
Intergwemmental:
Local:
Othev-p�blicworks $ - $ - $ - $ - $ 5,5�4
Charges forservims �49,000 �49,000 �56,126 �,126 �21,�44
��e��me e�og��o��� i o0o i o00 �vv �zop i an
Toe��e�m�e �sq000 �sq000 �scyzs cyzs ns,�vs
Expendilures:
Public works:
Cmrevt
re�soo�se��es zss,coo zss,coo asqzz3 (3a,cz3) zcs,sn
co�oa�ee� si,iso si,iso iz,3vs 3s,�ss ioyis
c000-a�m�s��es 3ozyco 3ozyco iaz,sss icqms iss,s�i
czpltzl o�tlzy 1z z1s
TotalexpmdiNres 609�40 609�40 445503 164,23� 450,281
xe�m�e o�e��wae�e yeoa�nue� iaozco iao zco 3ii azz vi icz z�s sia
Othev fivancivg sowms(�ses):
m���re�maeoe���a �in,azo� �in,azo� �3s,oiv� i3�,am �3s,ozo�
m���re�m cap�e�r�o�e�e�a �iss,sva�
Tordome�eo���ogsow�es(�ses} (in,azo) (in,azo) (3s,oiv) i3�am (iv39ia)
Nee�o��ease(ae��ease)�o�an���e a (3z,ieo) a (3z,ieo) z�e,ao3 a 3ossse sa,eoo
Fu�d balance-Jan�azy 1 33�614 253 014
Fu�dbalance-Decembev3l $ 61401� $ 33�614
113
CITY OF COTTAGE GROVE,MINNESOTA
SPECIAL REVINUE FiIND-FORFEITiJRF/SIIZiJRE Statement20
SCHEDULE OF REVENUES,EXPINDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACl'UAL
For The Year Fnded Duember 31,2016
With Comparative Data for the Year Ended December 31, 2015
Variance with
2016 Final BudgeG 2015
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Intergove�nmenhel:
cowry � s,000 � s,000 � - � (s,000) � 9i9
ForFeitures and seizures 21,000 21,000 39,900 1$900 17,840
InvestrnenteamingsQoss) 500 500 185 (315) 410
Totalrevenues 2Q500 79,500 40,085 10,585 1Q169
Expenditures:
Public safery:
Cmrent
Corrunodities 4,500 4,500 6,613 (2,113) 6,820
Contractualservices 14,620 14,620 21,824 (7,204) 16,863
Capital outlay 15,000 15,000 27,506 (12,50� $495
Total expenditures 34120 34120 55 J43 (21,823) 32178
Revenues over(under)expenditures $ (4,620) $ (4,620) (15,858) $ (11,238) (13,009)
Fundbalance-Januaryl 39,166 52,175
Fundbalance-December3l $ 23,308 $ 39,166
114
CITY OF COTTAGE GROVE,MINNESOTA
3PECIAL REVEIV[JE FTJND-ICE ARENA Statement 21
BCHEDULE OF REVEN[JE3,EXPENDITURE3 AND
CHANGE3IN FUND BALANCE-BUDGET AND ACTUAL
For The Year Evded December 31,2016
W itli Compara[ive Da[a for the Year Evded December 31,2015
V ariance wifh
2016 Final Budgeh 2015
B�dgetedAmo�vls AcNal Positive AcNal
Original Fival Amo�vts (Nega[ive) Amo�vls
Revev�es:
Geveral property taa:es:
Cmrevt and delivq�evt $ 290,000 $ 290,000 $ 288,607 $ (1,393) $ 291,955
Intergovemmevtal:
Local:
3chool district 57,000 57,000 57,000 - 57,000
Chargesforservices 963,000 963,000 987,895 24,895 883,558
��eso-�eoe e��gs�ioss� c,000 c,000 - �c,000� zso
Miscellaneo�s 14 14 1 938
Totalrevev�es 1,316,000 1,316,000 1,333,516 17,516 1,234,681
F�:pevdiNres:
C�INre and recrea[iov:
Cmrevt
Persoval services 376,300 376,300 351,458 24,842 349,671
Commodities 31,200 31,200 33,279 (2,079) 33,822
CovtracNal services 322,750 322,750 367,098 (44,348) 346,035
Capitalo�tlay 32,000 32,000 27,446 4,554 120,955
Debt 3ervice:
Capitalleasepaymevt 245,000 245,000 290,000 (45,000) 280,000
Interest and fiscal charges ll2 700 ll2 700 108 846 63 854 223 293
Total expevdiNres 1,ll9,950 1,ll9,950 1,ll8,127 1,823 1,353,776
Revev�esover(�vder)expevdiNres $ 136,050 $ 136,050 155,389 $ 19,339 (119,095)
Fhvdbalance-Jan�aryl (95,234) 23,861
Fhvdbalance-December3l $ 60,155 $ 95,234
115
CTTY OF COTTAGE GRO�E,MINNESOTA
SPECIAL REVEN[JEFOND-QOLF WURSE Shtement 22
SCHEDULEOFREVENUES,EXPENDITURESAND
CHANQESINFONDBALANCE-BUDQETANDACTUAL
For The Year Ended December 31,2016
With Comparative Data for the Year Ended Decanber 31,2015
Van wifh
2016 FivalB�dgeb 2015
BudgetedAmowts AcNal Positive AcNal
Origival Fival Amowts (Negative) Amowts
Rev
cnarge��ro����e� a i,soa,000 a i,soa,000 a i,aca,avs a (3v,soz� a i,as�,occ
m���eu�eo�� i soo i soo �vs s c�s z avi
Tord�e�eo�e� i,sos,soo i,sos,soo i,a�i,c�c �33,sza� i,asv,ss�
Expendilures:
CulWre andrecreation:
Cmrevt
re«oo��e��e� �si,000 �si,000 vsz,�cc �vi,�cc� �az,icz
co�oa�ee� ics,cso ics,cso iav,zao iv,aio iiv,3sv
c000-a�m�s��es a�vyso a�vyso avqcso (iqc�o) amyoz
cap�rd o�eay icv,000 icv,000 av,oii iiv9sv i3a,�ii
Debt Service:
cap�rd�ea�epay..�eoe 3�,aoo 3�,aoo 3�,a3z �3z� 3c,z3s
Intevestandfiscalcharges 800 800 �68 32 1y65
TotaleapevdiNres 1636830 1636830 16�986� (43,03� 1442334
xe�m�eso�e�(wae)eyeoa�nues (i3i,33o) (i3i33o) (zos,ivp (�c,scp vzz3
Othev fivancivg sowms(�ses):
m��sFe�a�aeoe��a - - ioq000 (ioq000) -
Trar�sfa fiom Capital hoject Fwd 1,20Q000
Tord ome eo���og sow�es(�ses) - - ioq000 (ioq000) i�Zoq000
Nee�o��ea�e�ae��ea�e��o�an���e a (i3i,33o) a (i3i�3o) (ios,ivi� a z3i3v i2v,zz3
Fu�dbalance-Jan�azyl (159y43) (1,3�],16�
Fu�dbalance-Decembev3l $ (26$134) $ (159y43)
116
CITY OF COTTAGE GROVE,MINNE60TA
SPECIAL REVENUE FUND -CHARITABLE 6AMBLIN6 6ta[emeut 23
SCHEDULE OF REVENUES,EXPENDTNRES AND
CHAN6ES IN FUND BALANCE-BUIl6ET AND ACP[JAL
Foc 1fie Year Evded Decembec 31,2016
With Comparafive Data foc Ne Year Evded December 31,2015
Variancewith
2016 Fival B�dget- 2015
B�dgetedAmo�vts ACNaI Po9tive ACNaI
Origjval Fival Amowls (Negafive) Amo�vls
Reven�es:
Inves[menteamivgsQoss) $ $ $ 52 $ 52 $ 105
Totalreven�es 52 52 105
Otlier 5vanavg so�roes(�ses):
ltavsfer to 6enecal Fwd (5,000) (5,000) (5,000) (5,000)
Total oNer 5vancivg so�roes(�ses} (5,000) (5,000) (5,000) (5,000)
Revev�es wer(�vder)er.pevdiNces $ $ (4y48) $ 52 (4,895)
Fwd balance-Jav�azy 1 9,405 14,300
Fwdbalance-Decembec3l $ 445] $ 9405
11]
-TMs Page Intentiortally left Blank -
��a
INTERNAL SERVICE
Self Insurance Fund —Established to provide self insurance for the City and its
officers, employees and agents for claims in excess of standud deductibles and to
account for the City flexible spending program and purcktase of insurance.
Fleet Maintenance Fund — Established to account for costs related to repair and
maintertance of City equipment and veMcles. Revenues received from departments
ue based on level of service performed.
Information Services Fund—Established to account for costs related to accessing
information elechonically and maintairung technology services including phone,
voicemail and intemet services. Revenues received from departmenTs ue based
on usage of those technology services.
119
CTTY OF COTTAGE GROVE,MINNESOTA
COMBINING STATEMENT OF NET POSIITON Statement 24
INTERNAL SERVICEFUNDS
Decan6er31,2016
With Comparative Data as of Decemba 31,2015
Totals
Self Fleet Infomution Intanal Service Fwds
Inmrance Mvntmance Savices 2016 2015
Assfts:
Cwrevt assfts:
Cashandiwestrnevl� $ 2,058,604 $ 2�6,465 $ 96�20 $ 2,431,389 $ 2,484,403
Accountsreceivable 4,241 - - 4,241 -
hepvditems 159,815 - 2328] 183,102 169,066
Invevtory-at mst 91,303 91,303 �Oy40
Totalc��rmtassel� 2,222,660 36�,�68 119,60] 2,�10,035 2,�24,409
Noncwrent assets:
Capitalassets:
Land - 424,665 - 424,665 424,665
Buildivgsandimpvwemml� - 928,8]0 - 928,8]0 928,8]0
Fquipmevt and fivniNre - - 18422� 184T2� 164,338
Maclilveryandequipmevt 255,9]2 255y]2 214326
Totalcapitalassel� - 1,609,50] 184,22� 1,�93,]34 1,�32,199
Less:Accumdateddepveciatiov (6�1,416) (8],�81) (�59,19� (69Q�93)
Totalvovcmrevtassel� 938091 96446 103453� 1032406
Total assel� $ 2,222,660 $ 1 305 859 $ 216 053 $ 3�44 5�2 $ 3�56 815
Defared outFlows:
Defe�redo�tflowsvelatedtopevsiov 13��84 630�2 200856 45063
Totaldefe�redo�tflows 13��84 630�2 200856 45063
Liabilities:
Cwrevt liabilities:
Acco�vl�payable $ 14,858 $ 33y]4 $ 3��38 $ 86,1�0 $ 69,�52
Healih care bevefil�payable 20y3� - - 20y3� 18,163
Uvpvd clvms 159,�41 - - 159,�41 143,�08
Salariespayable 551 20,889 8,12� 19,56� 23,603
D�e to otha gwanmevtal wits - 1,038 - 1,038 4�9
Compevsatedabsevmspayable 21292 �433 28�25 32201
TotalcmrevHiabilities 19608� �]193 52898 3261�8 28]y06
Noncwrent liabilities:
Compevsated absevms payable - 21,860 4,008 25,868 12,259
Othapostanploymevtbevefil� - 2,132 425 2,55� 2,212
Netpevsiovliabiliry 330043 151081 481124 328�52
Totalvovcwrevtliabilities 354035 155514 509549 343223
Tohlliabilities 19608] 431228 208412 835�2� 631119
DefaredinFlows:
Defe�redinFlowsrdatedtopmsion 41,153 1$838 59y91 31,409
Totaldefe�redinFlows 41,153 1$838 59y91 31,409
Netpositiom
Netiwestrnevtivcapitalassel� - 938,091 96,446 1,034,53� 1,032,406
Uvvestricted 20265�3 331�1 (44,5�1) 20151�3 2,106y34
Total mtpositiov $ 2 026 5�3 $ 9�1262 $ 518�5 $ 3 049�10 $ 3 139 340
120
CTTY OF COTTAGE GROVE, MINNESOTA
INTERNAL SERVICEFUNDS Shtement25
COMBININQ STATEMENT OF REVENUES,EXPENSES AND
CHANQES IN NET POSITION
For The Year Ended Decemba 31,2016
With Comparative Data for the Year Ended Decemba 31,2015
Totals
Self Fleet Info�xnation IntemalServiceFunds
Inswance Mvntenance Services 2016 2015
Operating revenues:
Charges for savices:
Usevfees $ - $ 945�89 $ 425,000 $ 1,3�0,389 $ 1,419,596
Employeebevefil� 1,616,650 - - 1,616,650 1,35�,600
hopertyivswance 220,650 - - 220,650 220,650
Inswanmvelwdsandveimb�vsanevl� 1442�1 144,2�1 104083
Totalopevativgvevev�es 1y81,5�1 945�89 425000 3,351y60 3,111,929
Operating expmses:
Operating and mvntenance:
Pevsovalsavims - 393,424 1�0,528 563y52 510,54�
Commodities - 44�215 45,546 492,�61 652y54
CovtracNalservims 121862 232038 353y00 219y92
Total opevatiov and mvvtevance 962 501 448 112 1 410 613 1 383 493
Admiristrative and general:
Pevsoval ivswance bevefil� 1,5�6,546 - - 1,5�6,546 1,432,083
CovtracNalservims 252y55 - - 252y55 249,518
Clvms 163 454 163 454 125 1�1
Total admiristrative and gemval 1y92y55 1y92y55 1 806�]2
Depveciatiov 30�45 19058 59403 49�91
Totalopevativgexpmses 1y92y55 992846 4�]1�0 3,462y]1 3240056
ope�aeog�o�ome�o��� �ii,3sa� �a�,as� �sz,vo� �iii,oii� �izs,iz�
Nomperating revmues:
N�es�eoee�ogs�oss) ii,az3 i,saz szc i3,avi zqo3i
Intagwemmevtal 1285 588 1,8]3 -
Nlismllaneo�s 3 854 986 11�� 601� 13 O5�
Total vovopevativg vevm�es 15 2�] 3 813 2191 21 381 33 088
Changeivmtpositiov 3893 (43,644) (4Q8]9) (8Q630) (95,039)
Nftpositiov-Jan�azyl 2,022,680 1,014y06 101,�54 3,139,340 3,538,8]�
Cumdative effect of change iv accowtivg privciple (304,498)
Nft positiov-Jan�azy 1,as veshted 2 022 680 1,014y06 101�54 3 139 340 3,234��9
Nftpositiov-Decanbev3l $ 2,026,5]3 $ 9]1,262 $ 51,8]5 $ 3,04Q�10 $ 3,139�40
121
CITY OF WTTAGE GROVE,MINNE90TA
COMBININ65TATEMENT OF CASH FLOWS 9GRmeu[26
INTERNALSERVICEFUNDS
For The Yeer Evded Decanba 31,2016
With ComperetiveDeta for theYeer Evded Decanba 31,2015
Tofels
Self FleeG Ivfortnetion Intanel5erviceFwds
Ivmrevce Meivtmevce Savicu 2016 2015
Cesh flows from operetivg ectivitiu�.
Receipfsfromivterfivdservicesprovided $ 1,831,300 $ 945,389 $ 425,000 $ 3,201,689 $ 3,OG'],846
Receipfsfromivmrevceretuvdsevdrevnb�rsemmfs 144,2T - - 144,2T 104,083
PeymmtWmppliers (411,918) (616,625) (PAQ15]) (1,26$"]00) (1,Z]$818)
PeymmLWemployees (1,513,"]58) (361,940) (16Q423) (2,096,121) (1,951,14�
Miscelleveo�srevm�e 3,854 986 1,1"]"] 6,01"] 13,05]
NetceshflowsRomcperetivgedivitiu (251) (32,190) 25,SS] (6,844) (llQS18)
Cesh flows fromvoncepital Evevcivg ectivities:
Ivtagovanmmhvlrevm�e 1,285 588 1,8"]3
Cesh flows from cepifel evd releted Evencing ectivities�.
Acq�isitionofcepihvlesse6 (41,64� (1Q888) (61,534) (13$312)
Cesh flows Rom ivvutivg edivitiu�.
IvvutrnmLeemivgsQoss) 11,423 1,542 526 13,491 2Q031
Netincreere(decrees)ivi cesh evd cesh eq�ivelenfs 11,1"]2 (]1,009) 6,823 (53,014) (P29,259)
Ceshevdcesheq�ivelenfs-Seweryt 2,04"],432 34"],4"]4 8Q4S] 2,4&l,403 2,"]13,662
Ceshevdcesheq�ivelenfs-Decanba3l $ 2,058,604 $ Z16,465 $ 96,320 $ 2,431389 $ 2,484,4G3
Rucncilietiov of operetivg ivwme Qoss)Yq veG cesh
provided(�sed)by operetivg ectivitiu�.
OperetivgivwmeQoss) $ C11,384) $ C4"],45]) $ C52,1"]0) $ C111,011) $ C12$1Z])
Adj�strnm6 W ruoncile cpaeting income Qoss)
Yq veG cesh flows Rom opaetivg ectivities:
Deprecieticn - 30,345 29,058 SQ403 4Q"]91
Miscelleveo�sreven�e 3,854 986 1,1"]"] 6,01"] 13,05]
Pensiones.pmse - - - - 1Q600
Chenges iv ess0s evd liebilitiu�.
Decreere(iv¢eese)inumeblu (4,PA1) - - (4,PA1) 560
DecreereC�a'eese)inprepeiditans (15,842) - 1,806 (14,03� (3$T"�
Decreere(iv¢ ese)in mtuy - (20,363) - (20,363) (1,PA2)
Ivcreere(decreese)inpeyeblu Z1,362 4,299 4$"]26 "T1,38"] (16,900)
Total edj�strnm6 11,133 15,26] "]"],"]6] 10.h,16] 1"],149
NeLceshflowsRomcpaetingectivities $ (251) $ (32,190) $ 25,SS] $ (6,844) $ (llQS18)
122
ECONOMIC DEVELOPMENT AUTHORITY
COMPONENT UNIT
Established to account for the receipt and use of morues for economic purposes.
123
CITY OF WTTAGE GROVE,MINNE90TA
COMBINIlS6 BALANCE SHEET-ALL 60V ERNMENTAL FUND TYPES 9GRmeu[29
ECONOMIC DEVELOPMENT AUTHORITY COMPONENT UNPP
Decemba3l,2016
With ComperetiveDefe es ofDecemba 31,2015
Tofels
EmvomicDevelopmmtA�ihoriC�
Speciel Debt ComponmtUvit
Revm�e Savice 2016 2015
Asse6
Ceshendivvutrnenfs $ - $ - $ - $ 389,254
InLrfuvdrueiveble - - - 1"]6,308
Loenrueiveble 3&l,608 - 3&l,608 -
Amowfsrueiveble 13,81"] - 13,81"] 5,212
Cepitalleesereceiveblefromprimerygovemmmt - - - 4,805,000
PrepeidiGms - - - 1,500
Delinq�mtprcpaC�fezesrueiveble 1,G']3 - 1,G']3 1,0&]
Prcpatyheldforruele 311,T8 311,T8 311,T8
Totaless0s $ T1,216 $ $ T1,216 $ 5,69q019
Liebilities:
Acmw6peyeble $ 5,995 $ - $ 5,995 $ 1"],108
Selariupeyeble $401 - $401 3,&]0
Ivtafuvdpeyeble - - - 1"]6,308
D�eYqothergovaxvnmfelwi6 4"]qZ11 - 4"]qZ11 -
DeposifsPeyeble 2,000 2,000 3,503
Tofelliebilitiu 486,66] 486,66] 20Q"]89
Defared ivflows ofruowces:
Uveveileblerevm�e-prcpatyfezu 1,G']3 1,G']3 1,0&]
Tohvl deferted ivflows ofreso�rces 1,G']3 1,G']3 1,0&]
F�vdbelence:
Nonrymdeble:
Prepeiditans - - - 1,500
AssOsforruele 311,T8 - 311,T8 311,T8
Rutrided for:
Debtsaviceresave - - - 5,3"]Q56L
u�ass��ea (aa,uz) (aa,uz) (iss,m)
Totalfwdbelence 223,4"]6 223,4"]6 5,48$2G3
Tofel liebilitiu,defared inflows ofruowce�
evdfwdbelevce $ T1,216 $ $ T1,216 $ 5,69q019
Fwdbelevcereportzdebove $ 223,4"]6
Other long-taxn esse6,ivd�ding prcpaC�fezes rueiveble,erevot eveileble W pey for cuRmGpaiod
�.pmditwu,evd thaefore,ere defared in the fwds. 1,G']3
Defared o�ftlows ofruowces evd defared inflows ofruo�rcu are¢eefed es e ru�lt of
v �sdiffamcesreletedWpmsionsthetarevotremgvizedivthegovemmmtalfwds.
� Defared ivflows ofruo�rcu releted W pmsicns (16,839)
Defared o�ttlows ofreso�rces releted W pmsicns 56,3"]9
Long-L=rtn liebilitie;ind�divg bonds peyeble,mmpmseted ebsmce;veGpmsion liebility end otha
po4 anploymmtbm�L=,arevot d�e end peyeble iv the ciurmtpaiod end thaefore arevotreported
ivthefuvds (143,29�
NeGpositionofcomponent�vit(pege33) $ 120,"]93
124
CITY OF WTTAGE GROVE,MINNE90TA
COMBINIlS65TATEMENT OFREVENUES,EXPENDITURES AND 9Gtemeu[2S
CHAN6ES IN FUND BALANCE-ALL 60 VERNMENTAL FUND TYPES
ECONOMIC DEVELOPMENT AUTHORITY COMPONENT UNPP
ForTheYear Evded Duanba 31,2016
With ComperetiveDefe for theYeer Evded Decanba 31,2015
Tofals
EccnomicDevelcpmmtA�thority
Spuiel Debt CompcnentUvit
Reven�e Service 2016 2015
Revmues
6mae1 prcpaty fezu:
Cw'mtenddelinq�mt $ llQ981 $ - $ 11Q981 $ 112,49]
Charguforsavice 29,95] - 29,95] 3Q000
InvutrnmLeemivgsQoss) - - - 4,133
InGre4ovloevWprimerygovanmmt 1,54"] 10$&!6 11Q"]93 223,293
Miscelleneo�s 281,091 281p91 102,3"]5
Tofelrevm�es 4PA,016 10$&!6 532,862 4"]2,298
Er.pendiWru:
6mae1 govaxvnenG
GurmG
Pascnelservicu 151,45] - 151,45] 183,"]91
Cortvnoditiu 3,"]03 - 3,"]03 12,345
Ccntreduelsavicu 162,981 565,562 "]28,543 1&],020
Debtservice
Privcipelretiranmt - 4,805,000 4,805,000 28Q000
IvtautevdEscelcharges 10$&!6 10$&!6 223,293
Tofel�.pmditwu 318,181 5,4"]9,408 5,"]91,589 886,449
Revm�uova(wd)es.pendiWres 105,835 (5,31Q562) (5,261,"]Z]) (414,151)
Netin¢eere(de¢ee)ivfwdbelevice 105,835 (5,31q562) (5,261,"]Z]) (414,151)
F�vdbelence-Sen�eryt ll"],611 5,310,562 5,488,203 5,902,354
F�vdbelence-Duanba3l $ P23,4"]6 $ $ 223,4"]6 $ 5,48$2G3
Netde¢eeseinfuvdbelevcereportzdebove $ (5,261,"]Z])
Revm�es iv the Aetanent of ectivitiu ihet do votreporG ewrent Evevciel ruowces erevot
reportzd es reven�u in the fwds�.
6mere1 prcpaC�fezes�veveileble revm�e
A[Decemba3l,2015 (1,08"])
ALDecemba3l,2016 1,013
The ismevce of long-taxn debt(eg.,bonds,leesu)providu ewrent Evevciel ruowces
Yq govaxvnmfel fwds,while the repeymmt ofthepnvcipel of longtaxn debt ecnmmu
iheciurmtE encielruo�rcuofgovanmmfelfwds. Neithatrensedioqhoweveqhes
enyeffedonveGpositioa Thisemo�vtisiheveGeffecGofthuediffamcuivthetreetrnmt
of Icngtaxn debt end releted itans:
A'ivcipelrepeymmfs 4,805,000
6ovaxvnenfel fuvdsruo�izepmsion contrib�tions es ezpmditwu eHhetimeof
peymmtwherees the Aetanent of ectivitiu fectcrs iv iGms releted W pmsicns ov e
full eccruel paryutive 12,601
Some�.pmsu reported iv ihe sfetanmt of edivitiu do votreq�irethe�se of ciurmt
E encielruo�rcuendihaeforearevotreportzdes�.pmditwuivgovanmmfel
fwds�
Compmseted ebsmcu�.
A[Decemba3l,2015 4,6U!
ALDecemba3l,2016 (],33�
OthapostanploymentbmeEfs�.
A[Decemba3l,2015 811
A[Decemba3l,2016 (91p
ChengeivveGpositionofcompovmtwit(pege3� $ (449,952)
125
-TMs Page Intentiortally left Blank -
�zs
SUPPLEMENTARY FINANCIAL INFORMATION
�z�
CITY OF COTTAGE GROVE,MINNESOTA
COMBRVED SCHEDULE OF BONDID RVDEBTEDNESS
Duember 31, 2016
Interest Final
Rate Dated Payment
Rimazy Govemment
General Obligation Bonds:
$1,405,OOOTaxIncrementBondsof2004A 3.0-4.65% 7/1/2004 2/1/207A
$1,405,OOOTaxIncrementRefundingBondsof2014A 2.0-2.SW/o 5/79/2014 2/1/2021
$4,66QOOOG.O.RefundingBondsof2016A 2.03.OW/o 1/28/2016 2/1/2027
Total General Obligation Bonds
Special Assessment Debt
ImprovementBondsof2009A 2.50-430% M16/2009 2/1/207A
ImprovementBondsof2012A 030-2.20% 3/13/2012 2/1/2027
ImprovementBondsof2013A 3.003.50% 9/26/2013 2/1/2079
ImprovementBondsof2015A 2.503.00% 5/27/2015 2/1/2031
ImprovementBondsof2016B 2.00-2.10% 11/16/2016 2/1/2033
Total Special AssessmentDebtwitli Gove�nmenhel Commitrnent
Total Bonded Indebtedness-Primazy Govemment
Total Bonded Indebtedness-Reporting Entiry
128
Ezrt�ibit 1
Autliorized RincipalDue InterestDue
Md Issued Retired Outshending In 2017 In 2017
$ 1,405,000 $ 38Q000 $ 1,025,000 $ 35,000 $ 45,860
1,405,000 345,000 1,06Q000 19Q000 2Q660
4 660 000 4 660 000 575 000 119 775
7,47Q000 725,000 6,745,000 80Q000 186,795
3,65Q000 1,71Q000 1,J4Q000 23Q000 73,375
1,865,000 48Q000 1,385,000 12Q000 21,818
7,345,000 73Q000 6,615,000 425,000 199,740
5,70Q000 - 5,70Q000 340,000 157,835
4 275 000 4 275 000 60 860
22,835,000 2,92Q000 19,915,000 1,115,000 513,628
3Q305,000 3,6�V5,000 26,66Q000 1,915,000 699,923
$ 30,305,000 $ 3,6{5,000 $ 26,660,000 $ 1,915,000 $ 69Q923
129
CIiY OFCOiiAGE GROVE,MINNESOiA
DEBT SEkV ICE PAYMENTS TO MATUkITY E�tibi[2
Decar�ber31,2016
PnmaryGov �[
Gevual Obligatiov Bovds Spedal Assessmevt Bovds
TarzN¢emev[ kevev�eBovds Pavar��[Maeagar��[
$1 405,000
$1,405,000 Ts: $4,660,000
Tarz Iv¢emev[ Total GD. Total Total Total
N¢emev[ ke[wdivg Tarz ke[uvrlivg G�ual $3,65q000 $ 1,86$000 $"],34$000 $ $"]Oq000 $ 4,2"]$000 Pavar��[ Speoal
Bovds Bovds Ivaar�art Bovds Obligatiov Bovds Bovds Bovds Bovds Bovds Maeagar�art Assessmev[
of2004A of2014A Bovds of2016A Bovds of2009A of2012A of2013A of2015A of2016B Bovds Bovds
Bovdspayable $ I,o25,000 $ I,o6q000 $ 2oas,000 $ 4,66q000 $ 6,"]4$000 $ 1,94q000 $ 1,3as,000 $6,615,000 $5,"]oq000 $4,2"]s,000 $19,915,000 $ 19,915,000
F�Nveiv[uestpayable 2"]1,665 59,860 331,SL5 58"],600 919,125 326,390 141,260 1,461,231 1,232,215 "]5$820 3,916,916 3,916,916
Totals $ 1,296,665 $ 1,119,860 $ 2416,SL5 $ $24"],600 $ "],664,125 $ 2,266,390 $ 1,526,260 $ $0"]6,231 $ 6,932,215 $ $03q820 $23,831,916 $ 23,831,916
Paymev6 N maNnty
201"] 8q860 21q660 291,520 694,"T15 984�95 303,3"]5 141,818 624,"]40 4Y1,835 6q860 1,62$628 1,62$628
2018 "]9,320 221,"]10 301,030 69"],225 99$255 295,03] 14q858 621,840 492,560 234,420 1,"]84,"]IS 1,"]84,"]IS
2019 "Tl,"]80 23"],410 31$190 694,150 1,009,340 291,025 144,599 623,565 492,060 355,1"]0 1,906,419 1,906,419
2020 "]6,240 24"],580 323,820 40q050 "]2$8"]0 286,525 14$002 624,840 481,410 349,6"]0 1,89q44"] 1,89q44"]
2021 104,040 202500 306,540 40q000 "]04540 281,825 146,118 62q"]40 48q610 344,1"]0 1,8"T3,463 1,8"T3,463
2022 286,8"]2 - 286,512 399,650 684522 2"]6,800 144,005 621,265 4"]4,585 33$6"]0 1,855,325 1,855,325
2023 294,810 - 294,810 394,0"]5 68$885 2"]1,320 146,685 621,340 4"T3,335 343,0"]0 1,855,"]50 1,855,"]50
2024 296,"]43 - 294�43 393,Z15 69q018 26q483 149,0"]0 62q965 461,935 331,3"]0 1,829,823 1,829,823
2025 - - - 394,050 394,050 - 146,200 62q140 460,385 331,6"]0 1,558,395 1,558,395
2026 - - - 391,500 391,500 - 14$135 61$590 459,535 325,9"]0 1,552,230 1,552,230
202"] - - - 38$850 38$850 - "]q"T10 62q944 449,535 325,220 1,466,469 1,466,469
2028 616,58"] 44$966 319,420 1,3"]9,9"]3 1,3"]9,9"]3
2029 - - - - - - - 62q6"]5 442691 31$620 1,3"]4986 1,3"]4986
2030 - - - - - - - - 431,383 312,"T10 "]44,153 "]44,153
2031 - - - - - - - - 390,390 311,820 "]02,210 "]02,210
2032 - - - - - - - - - 305,6"]0 305,6"]0 305,6"]0
2033 121,260 121,260 121,260
Totals $ 1,296,665 $ 1,119,860 $ 2416,SL5 $ $24"],600 $ "],664,125 $ 2,266,390 $ 1,526,260 $ $0"]6,231 $ 6,932,215 $ $03q820 $23,831,916 $ 23,831,916
130
CITY OF COTTAGE GROVE,MINNESOTA
DEEERRED TAX LEVIES Ezrt�ibit 3
December 31, 2016
PavementManagement
Special AssessmentBonds
Total
$3,65Q000 $1,865,000 $7,345,000 $5,70Q000 $4,275,000 Pavement
Local Local Local Local Local Management
Yearof Improvement Improvement Improvement Improvement Improvement Special
Tax Levy/ Bonds Bonds Bonds Bonds Bonds Assessment Tohel
Collection of2009A of2012A of2013A of2015A of2016B Bonds AIILevies
2016/17 175,579 78,739 41Q888 318,114 17Q420 1,153,690 1,153,690
2017/18 17$243 82,855 412,936 322,8M 19$540 1,195,378 1,195,378
2018/19 18Q144 86,596 414,511 316,679 196,559 1,194,489 1,1J4,489
2019/20 181,834 84,753 41Q363 321,054 194,579 1,192,583 1,192,583
2020/21 183,314 82,638 411,150 319,863 192,598 1,189,563 1,189,563
2021/22 184,322 85,567 411,466 323,765 201,117 1,206,237 1,206,237
2022/23 179,596 8$266 411,308 316,853 19$926 1,194,J49 1,1J4,J49
2023/24 - 85,326 41Q678 32Q440 196,736 1,013,180 1,013,180
207A/25 - 87,489 409,576 323,712 194,545 1,015,322 1,015,322
2025/26 - 42,424 412,673 318,269 197,6M 970,970 970,970
2026/27 - - 409,271 318,076 195,308 922,655 922,655
2027/28 - - 414,022 321,939 193,013 928,974 928,974
2028/29 - - - 315,014 195,967 S1Q981 S1Q981
2079/30 328,911 19$816 527,727 527,727
2030/31 - - - - 196,310 196,310 196,310
2031/32 7Q082 7Q082 7Q082
$ 1,262,982 $ 804,653 $ 4,938,842 $ 4,485,493 $ 2,991,120 $ 14,483,090 $ 14,483,090
131
CITY OF COTTAGE GROVE, MINNE60TA
SUBCOMBININ6 BALANCE SHEET Fxhibit 4
PAVEMENT MANA6EMENTDEBTSERVICESCHEDULE
December 31,2016
With Comparative Data as of Decembec 31,2015
Totals
2009A 2012A 2013A 2015A 2016B PavementManagement
Improvemevt Improvemevt Improvemevt Improvemevt Improvemevt DebtServiceSche�le
Bonds Bonds Bonds Bonds Bonds 2016 2015
Assels:
Cashandivvestrnenls $ 501,451 $ 331,0]2 $ 938y9] $ 902,220 $ 382,309 $ 3,056,049 $ 2�48,452
Delivq�evtpcoptt[ytaeesreceivable 1,685 ]34 2,325 69 - 4,813 4,656
Special assessmevls cecavable:
Deferted 489,831 284,136 1,19],]50 1�88,31] 1,019,399 4,589,433 4,145,148
Delivq�evt 2,530 980 1,839 3,39] - 8,]46 6,404
SpeQal defwred ],565 9,049 4y93 ]y63 19�]0 28,210
Totel assels $ 995 49] $ 624 48] $ 2,149y60 $ 2,498y96 $ 1 419 6]1 $ ]688 611 $ 6]32 8]0
Liabilifies:
Acco�vls payable $ $ 450 $ $ 450 $ $ 900 $
Total liabilities 450 450 900
Defwredinflows ofresources:
Uvavailablereven�e-pcopertytaees 1,685 ]34 2,325 69 - 4,813 4,656
Uvavailablerevev�e-speQal assessmevts 492,361 292,681 1208,638 1�96,]0] 1,03],362 4,62],]49 4,1]9,]62
Totaldefe�redivflowsofceso�roes 494,046 293,415 1210y63 1�96,]]6 1,03],362 4,632,562 4,184,418
NLndbalance:
Restrictedfocdebtreticement 501,451 330,622 938y9] 901,]]0 382,309 3,055,149 2�48,452
Totelfuvdbalance 501,451 330,622 938y9] 901,]]0 382,309 3,055,149 2�48,452
Total liabilities,defe�red ivflows of ceso�roes,
andfuvdbalance $ 995,49] $ 624,48] $ 2,149y60 $ 2,498y96 $ 1,419,6]1 $ ],688,611 $ 6,]32,8]0
132
CTTY OF COTTAGE GROVE, MINNESOTA
SUBCOMBINING STATEMENT OF REVEN[JES, E�ibit 5
EXPENDITURES AND CHANQES IN FUND BALANCE
PAVEMENTMANAQEMENTDEBTSERVICESCHEDULE
For The Year Ended Decemba 31,2016
With Comparative Data for the Year Ended Decanber 31,2015
Totals
2009A 2012A 2013A 2015A 2016B PavemevtManagemevt
Imprwement Imprwemmt Imprwement Imprwanent Imprwement Debt Service Schedde
Bonds Bonds Bonds Bonds Bonds 2016 2015
Rrv
Gmaal�property t�es:
Cmrevtanddelivq�evt $ 149,332 $ 49,�90 $ 198�60 $ 99,43� $ - $ 596y19 $ 58�y25
Special assessmmts:
Cmrevt 111,6�0 54,495 164y�5 251,611 383,219 965y]0 963208
Delivq�evt 1,2�5 3� 1,139 243 - 2,694 3291
Pvepaymevl�ovdefared 20,�01 13,554 69y03 98,195 - 202�53 135,4�5
Pmalties 330 93 411 302 - 1,136 989
��e��mee�og��o��� z n3 i asi 3 nc z cvz (vio) v o-n io avo
Tord�e�eo�e� zss,azi iiv,azo s3s,sia asz,aso 3sz,3ov i,ns,iaa i,�oi��s
Expendilures:
C��rmt
CovtracNalsavims 2,01� �63 2,419 1�48 - 6,54� 11,462
Debt service:
Rivcipalvetivemmt 225,000 120,000 410,000 - - �55,000 8]0,000
Intevestandfiscalcharges 8133� 2349� 212,265 192801 509y00 341,2]3
TotaleepevdiNres 308354 144,260 624684 194149 12�144� 1,222,�35
xNeo�e�o�e��wae��expeoa�nue� �zz533) (za,sao� �sc,i�o� zss,33i 3sz,3ov soc,cv� a�s,ca3
Othev fivancivg sowms(�ses):
Transfer fiom Debt Service Fwd 146,565
Total othev fivancivg sowms(�ses) 146565
Nn�o��ease(ae��ease)�o�an���e (zz533) (za,sao) (sc,i�o) zss,33i 3sz,3ov soc,cv� czs2os
Fwdbalance-Jan�azyl 524384 355462 102516� 643439 2548452 1,923,244
Fwdbalance-Decembev3l $ 501,451 $ 33Q622 $ 938y9] $ 901,�]0 $ 382,309 $ 3,055,149 $ 2,54$452
133
CTTY OF COTTAGE GROVE, MINNESOTA
SUBCOMBIN1Na BALANCE SHEET E�ribit6
TAX INCREMENT CONSIRUCTION REV OLVINQ SCHEDULE
Decem6er31,2016
With Comparative Data as of December 31,2015
Reconciliation 1TFRevolvingCapital
1TF 1TF 1TF TIF 1TF TIF to Norunajor Project Schedule
1-8 1-12 1-14 1-15 1-16 1-1� Fwd 2016 2015
Assets:
Cash avd iwestrnevts $ 440 869 $ 890 056 $ 1 333 $ 992 $ $ $ $ 1 333 250 $1 85��69
Totalassel� $ 440869 $ 890056 $ 1333 $ 992 $ $ $ $ 1333250 $ 185��69
Liabilities:
Accowl�payable $ - $ 2�6y80 $ - $ 41 $ - $ �,4�8 $ - $ 284,499 $ 60,822
Intevlwdloanpayable 236000 5]354� 29988] 36��0 1145804 �61�58
Totalliabilities 2�6y80 236,000 5]3,588 299,88] 43,848 1,430,303 822,580
Fwd balance(deficit):
ResMcted for:
T��o��emeoep�oses aaqscv ci3,o�c - - - - (i,os35as) - i,o3s,isv
Uvassigved (234,66�) (5�2,59� (29Q88]) (43,848) 1,053y45 (9�,053)
Tord�oan���e�aee��e� aaqscv ci3,o�c �z3a,cc� �sn,svc� �zvv,ss� �a3,sas� �v�,os3� i,o3s,isv
Total liabilities,defe�red inFlows of resources,
andlwdbalavice $ 440869 $ 890056 $ 1333 $ 992 $ $ $ $ 1333250 $ 185��69
134
CITY OF COTTAGE GROVE,MINNE60TA
SUBCOMBININ6 SCHEDULE OF REVENUES, Exltibit 9
EXPENDITURES AND CHAN6ES IN FUND BALANCE
TAX INCREMENT CONSIRUCTION REV OLVIN6 SCHEDULE
For The Yeac Evded Decembec 31,2016
With Comparative Data foc the Yeac Evded Decembec 31,2015
Totals
1IF Revolvivg Capitel
TIF 1IF 1IF 1IF 1IF 1IF PcyectSche�le
1-8 1-12 1-14 1-15 1-16 1-1] 2016 2015
Revev�es:
Taxivcremevtwllections $ 35,346 $ 348y81 $ ]8,438 $ 296 $ - $ - $ 463,061 $ ]10,541
mves[meneeacniugs�oss) z,�oz s,�sv (�zs) - sc - �qsoz �qmv
SaleofPcoperty - - - - 929y05 - 929y05 469,454
Miscellaveo�s 5 000 5 000
Total revev�es 3]448 35]]20 ]8 313 296 929y91 5 000 1 408]68 1 190 0]4
Er.pevANces:
Currevt
Contrac[�al secvices 220 223,215 300 1,168 341,428 48,848 615,1]9 192,296
Lavdp�rohase - 696y16 - 696y16 ]24y48
COfISINC�lOf1 C09I9:
Contrac[�al secvices 921,816 133,]00 155,639 1,211,155 100,000
Debt service:
Ivteres[avd fiscal chacges ll,]60 ll,]60 24,300
Total er.pevANces 220 1,145,031 18,060 134,868 1,193y83 48,848 2,541,010 1,141,544
Reven�es ovec(�vdec) er.pevANces 3],228 (]8],311) 60,253 (134,5]2) (263y92) (43,848) (1,132,242) 48,530
F�vd balavce(deficit)-Jan�ary 1 403 641 1 400 38] (294y20) (438,024) (35,895) 1 035 189 986 659
F�vd balavice(deficit)-Decembec 31 $ 440 869 $ 613 0]6 $ (234,66]) $ (5]2,596) $ (299,88]) $ (43,848) $ (9],053) $ 1 035 189
135
CITY OF COTTAGE GROVE, MINNESOTA
SUBCOMBRVING BALANCE SHEET Ezrt�ibit8
TIFDEBTSERVICEREVOLVINGSCHEDULE
December 31, 2016
With Comparative Data as of December 31,2015
2004A Tax 20MA 2014A Taxable
1985 Tax Increment Tax Exempt Tax Increment Totals
Increment Refunding Increment Refunding TIFDebtService
Bonds Bonds Bonds Bonds RevolvingSchedule
TIF 1-1 TIF 1-3 TIF 1-12 TIF 1-12 2016 2015
Assefs:
Cash and investrnenfs $ 357,684 $ 566,889 $ 79,070 $ 38,990 $ 1,042,633 $ 1,006,962
Total assefs $ 357,684 $ 566,889 $ 79,070 $ 38,990 $ 1,042,633 $ 1,006,962
Liabilities:
Accounfs payable $ 357 684 $ 566 889 $ $ 450 $ 925 023 $
Totalliabilities $ 357,684 $ 566,889 $ $ 450 $ 925,023 $
Fund balance:
Restricted for tae increment pmposes $ $ $ 79 070 $ 38 540 $ 117 610 $ 1 006 962
Total fund balance 79,070 38,540 117,610 1,006,962
Totalfundbalance $ 357,684 $ 566,889 $ 79,070 $ 38,990 $ 1,042,633 $ 1,006,962
136
CITY OF COTTAGE GROVE, MINNESOTA
SUBCOMBRVING STATEMEN'C OF REVENUES, �tribit 9
EXPENDITURES AND CHANGES IN FUND BALANCE
TIFDEBTSERVICEREVOLVINGSCHEDULE
For The Year Ended Duember 31, 2016
With Comparative Data for the Year Ended Duember 31, 2015
2004A Tax 20MA 2014A Taxable
1985 Tax Increment Tax Fxempt Tax Increment Tohels
Increment Refunding Increment Refunding TIFDebtService
Bonds Bonds Bonds Bonds Revolving Schedule
TIF 1-1 TIF 1-3 TIF 1-12 TIF 1-12 2016 2015
Revenues:
Taxincrementcollutions $ - $ - $ 140,000 $ 173,000 $ 313,000 $ -
r�o�a�e�e�Ngs�ioss� i 9oa s ois (iso) i os9 s�si 9 zas
Total revenues 1,904 3,018 139,820 174,039 318,781 9,279
Fxpenditures:
Cmrent
Contractualservices 357,684 566,889 475 475 925,523 1,400
Debt service:
Rincipalretirement - - 35,000 175,000 21Q000 205,000
Interest and fiscal charges 47 400 25 210 72 610 81 7M
Totalexpenditures 357,684 566,889 82,875 20Q685 1,208,133 28$1M
Revenues over(under)expenditures (355,780) (563,871) 56,945 (26,64� (889,352) (27$875)
Fundbalance-Januaryl 355,780 563,871 22,125 65,186 1,006,962 1,285,837
Fundbalance-December3l $ $ $ 79070 $ 38540 $ 117610 $ 1006962
13]
-TMs Page Intentiortally left Blank -
138
III. STATISTICAL SECTION (UNAUDITED)
139
-TMs Page Intentiortally left Blank -
�ao
CIiY OF COiiAGE GRO VE,MIIVIVESOiA
NET POSITION B Y COMPONENT Table 1
Iast TevFis�1 Y�rs
(acwal baas ofa¢owtiv�
Fis�1 Y�r
200"1 2008 2009 2010 2011 2012 2013 2014 2015 2016
Govmu��fzladivities
Netie�vestmevtie��pifzlassets $ 95,0"16,"14"1 $ 94,590,013 $ 92,"135,500 $ 94,"19Q0"19 $ 109,696,916 $ 12q412,8"IS $ 12QI56,059 $ IY1,260,042 $ 125$62,910 $ 132,83Q861
kutnctetl 6,415,232 "1,828,338 8,158,356 5,841$63 Q282,305 4,210y13 "I,IS1,948 6,911,432 8,"166,"106 "1,609,138
Umestnctetl 36$19,388 39,209y95 42y2$ISI 45,412,895 3Q625,010 25,02Q44"1 25y0$61"1 2$2T1,391 2Q285,1"14 19,091,443
TOWgovertu�evWaNvitluvdpoatlov $ 138,011,361 $ 141,628,346 $ 143,822,013 $ 146,048$31 $ 148,604,231 $ 149,648,235 $ 151,252,624 $ 162,508,8"11 $ 158,614,850 $ 159,535,448
B�sivus-typeadivities
Netie�vestmevtie��pifzlassets $ 49,645,510 $ 53,361,4"IS $ SQ106,504 $ 53,510,041 $ 53,664,161 $ 53,225,445 $ 51,453,195 $ 54,432,059 $ SQ202,"110 $ 54,063,4"10
kutnctetl 260,365 262,3"IS 269,195 325,685 325,460 - - - - -
Umestnctetl 10,00],818 Iq922,468 12,283,"180 12,829,661 13,236,680 14,645,490 16,"192,024 15,896,363 13y80,910 13,628,016
TOWb�sivus{ypeactivitlesvetpositlov $ 59y14,053 $ 64,552,318 $ 66,659,4"19 $ 61,025,351 $ 61,226,301 $ 61,SIOy35 $ 68,245,219 $ "10,328,422 $ 68,183,680 $ 61,691,486
Peimary Govaeu�a�t
Netie�vestmevtie��pifzlassets $ 14Q"R2,61"1 $ 14"1,951,488 $ 146,842,004 $ 14$66Q120 $ 163,361,OT1 $ 1"13,638,320 $ 1"15,609,254 $ 181,692,101 $ 1"19,"165,680 $ 186,898,331
kutnctetl 6,6"15,591 $090,"113 8,4Y1,551 6,161,248 Q60],"165 4,210y13 "I,IS1,948 6,911,432 8,"166,"106 "1,609,138
Umestnctetl 46$Y1,206 Sq132,463 55,211,931 58,242$56 4"1,861,690 39,669y31 42,"IOq641 44,1"13,"160 38,266,144 32,"119,459
TOWpnrterygovaeu��tvetpositlov $ 191y25,420 $ 206,180,664 $ 210,481,492 $ 213,0]3y24 $ 215,830,532 $ 21"1,519,1"10 $ 225,491,843 $ 232,831,293 $ 226,"198,530 $ 2Y1,226y34
141
CIiY OF COiiAGE GRO VE,MIIVIVESOiA
CHANGES PI NET POSITION iable i
Iast TevFis�1 Y�rs
(acwal baas ofa¢owtiv�
Fis�1 Y�r
200] 2008 2009 2010 2011 2012 2013 2014 2015 2016
E rya
Govmu��fzladivitles:
Gevaal govemmevt
kegWaropaatlovs $ 1,90"1,"RS $ 2,155,101 $ 1,86$582 $ 2,125,40] $ 2,985,511 $ 2,991,ffi5 $ 2,Y10,332 $ 2,229,518 $ 2,346,805 $ 3,45q4"19 (1)
LantlSales 2,Y13,696 - - - - - - - - -
Payrtwnttommpov�t�utit - 61$880
Cortumuutytlev0opmevt 803,916 893,468 1,106,256 1,14q456 - - 903,180 946,001 1,086,191 1,1"13,0]I (1)
Emvorttictlrvelopm�t - - - - I,IIq214 362,009 61,302 545,646 1,46q114 2,251,548
P�blicsalHy 5,4"15,440 5,"105,153 5,"R4,450 5,888,224 6,252,530 "1,069,301 6,949,225 "1,212,998 "1,662,393 Iq153,"R6
P�blicwoeks
kegWaropaatiovs 2,855,163 3,19"1,111 3,26"1,455 3,364,115 3,805,839 4,0]4,995 4,12$694 4,6Y1,829 4,"113,100 4,583,513
Covstr�ctiov 2,066,692 2,18$158 2,384,980 2,54"1,0]8 2,882,Y16 2,534,116 3,992,536 2,911,353 2,"112,945 5,039,822
CWtweavtivev�tiov 2,41"1,221 2,604,623 2,614,"181 2,992,620 2,94$0]5 3,059,Y13 4,"16$181 5,119,093 5,153,844 5,34q558 Q)
Ivtautovlovg-tamtlebt I,YI$801 1,163,542 1,54$"104 1,056,110 846,258 8Y1,645 916,891 80$642 1,029,228 SI5,642
TOWgovertu�evWaNvitiuc.p�su 19,0]$654 1$586,036 18,515,208 19,114,010 2q83q"163 2q925,164 24,050,341 24,461,080 26,164,626 32,514,359
B�sivus-typeadivities:
Golfmwse 1,616,541 1,61"1,"108 1,553,921 1,44"1,849 1,504,006 1,614,321 - - - - Q)
Streetli�hhts 56"1,966 459,314 50$615 534,206 625,312 659,869 "142,410 861,690 "146,"194 "146,005
COPzgeGmveFMS 951,159 "168,240 92q991 915,560 1,038,9R 1,109,809 1,322,635 1,412,855 1,50"1,"166 1,68$041
WateroP�tivg 2,48$110 2,09"1,0]I 1,801,0]0 1,891,"152 1,901,985 2,049,51"1 2,341,555 2,216,819 2,43$166 2$Iq466
SewaoP�tivg 1,806,"I50 1,953,985 2,0]9,IY1 2,ISq"195 2,223,"149 2,242,"T18 2,Y1$958 2,42$944 2,44$283 2,"IY1,188
TOW b�sivus{ypeaNvities "1,43q526 6,896,318 6,863,"R4 "I,OOq162 "1,294,024 "1,616,654 6,685,558 6,926,308 "1,141,009 "1,531,"100
TOW pnrterygovmu��tv.^p�ses $ 26,509,180 $ 25,482,354 $ 25,43$932 $ 26,114,1"R $ 2$124,"ISI $ 2$601,818 $ 3q"135,899 $31,351,388 $ 33,305,635 $4q406,059
Pmgar�Revames
Govmu��fzladivities:
CNugu Nrsavices:
Gevaal govemmevt
kegWaropaatlovs $ 324,315 $ 28$502 $ 246,OY1 $ 224,"119 $ "164,185 $ 883,YR $ 23$"RI $ 13$"168 $ 11"1,636 $ 665,193 (1)
Lantlsales 2,265,963 - - - - - - - - -
Cortumuutytlev0opmevt 884,9T1 959,800 852,453 944,Y18 - - 1,115,203 989,140 1,52"1,836 1,660,365 (1)
Emvorttictlrvelopm�t - - - - 1"IS 210 "1,626 1,"Tll 3,461 5,210
P�blicsalHy 3R,491 363,046 391,593 396,851 444,039 429,646 353,130 325,368 394,514 431,862
P�blicwoeks
kegWaropevtiovs "148,261 81$692 "R0,391 "110,341 845,315 88q095 "19"1,432 I,OIq695 911,599 915,532
Cov4e�Nov 13q0]3 231 1"I,Y13 - - - - - - -
CWtweae�tive¢�tiov 616,602 "T19,941 98q003 1,1"18,9T1 1,024,516 1,026,685 2,413,"144 2,44$968 3,091,0]2 2,"R5,288 Q)
Opaativggavtsae�ticovtnb�tiovs 1,216,184 1,252,052 1,192,559 1,21q249 1,084,928 1,0]5,529 1,211,506 1,545,268 1,23"1,805 1,616,805
Capifzlgavtsavtlmvtnb�tiovs 12,"18"1,"194 6,156,916 2,941,206 2,464,"182 5,11$546 3,064,292 Iq310,9R 9,401,"TIS 5,861,631 Iq284,04"1
TOWgovertu�evWaNvitiupmgarovevev�u 19,346,666 Iq619,186 "1,341,511 "1,13q233 9,281,"104 "1,359,"R9 16,508,334 15,861,"153 13,205,620 1$424,302
142
Fis�1 Y�r
200] 2008 2009 2010 2011 2012 2013 2014 2015 2016
Pmgaro kev��es(covtiwetl)
B�sivus-typeadivities:
CNugu Nrsavices:
Golfcowse 1,645,832 1,55"1,213 1,563,399 1,583,098 1,399,204 1,566,035 - - - - Q)
Streetli�hts 915,0]4 691,384 596,"103 494,162 532,60] 54q696 58q831 65$810 549,005 53q905
COPzgeGmveFMS 1,158,391 516,"162 1,13q948 1,06$953 1,114,226 1,52$"156 1,569,01"1 1,626,320 1,431,00] 1,"166,236
WateroP�W6 2,602,123 2,543,433 2,42$"138 2,161,0]6 2,249,926 2,"T13,93"1 2,369,510 1,86$942 1,84q088 1,81"1,862
Seweropaativg 1,859,889 1,933,680 1,939,912 2,202,013 2,20$014 2,20],363 2,1"15,4"19 2,151,"156 2,31q624 2,291,038
Capifzlgavtsavtlmvtnb�tiovs 165,266 26"1,465 1,051,532 1,"183,"162 361,"162 196,611
TOWb�sivus{ypeaNvitlespmgamvevev�u $181,315 "1,602,4"R "1,659,"100 "1,614,568 "1,"T11,442 $616,"18"1 "1,"146,435 $089,590 6,492,486 6,602,"112
TOW pnrterygovaeu��tpmgamvevev�u $ Y1,52"1,981 $ 18,221,658 $ 15,001,211 $ 14,804,801 $ 1"1,053,146 $ 15,916,516 $ 24,254,"169 $23,951,343 $ 19,69$106 $25,OY1,014
Net(E:�evs)/f:rvev�e
Govmu��fzladivitles $ 26$012 $ �1,966,85� $ Q1,233,69� $ Q1,983,"PPI) $ Q1,549,05� $(13,565,43� $ �1,542,00� $ ($599,32"� $(12,959,00� $Q4,45q05"I)
B�sivus-typeadivities "ISq"189 "106,154 "195,916 614,406 4"1"1,418 94q133 1,06qST1 1,163,2ffi (64$523) (92$988)
rowenrrerys�^����e��e��e a �,o�a,ao� a o,�eqe9� a Po,a3�,�iq a P43o9,nq a P4m�,eaq aP�,�s,3oz� a reAa�,�3m a ,�q34oq� ar�3,em,s�» a �s,( n9,oa�
Gevaal krvev�u ae�tl Otha Ct¢e�ges iv NetPoatiov
Govmu��fzladivities:
Pmpertyfzxu $ 11,113,215 $ 11,535,320 $ 11,80$510 $ 11,42"1,029 $ 11,494,"158 $ 12,33q135 $ 12,096,046 $ 12,616,261 $ 13,394,585 $ 13,956,582
Fvvtltisefzxu 39q901 396,1"13 399,588 51"1,391 535,188 531,682 54q"161 542,689 526,643 516,931
Aggegatefzxu 9,494 13,489 24,234 3q554 26,131 26,180 26,135 26,236 3"1,133 39,"148
Tarziv¢ar�evtcollectiovs 904,836 909,434 1,123,"T14 1,253,414 946,603 892,438 939,314 "111,628 "IIq541 "T16,061
Gavtsavtl mvtnb�tiovs vot vestnctetl to
spetlficpmgams 63"1,663 324$18 202,"I51 2"1,050 26,146 29,"142 29,060 83,682 99,131 126,058
UmeNlctetlivvutm�t�mivgsQoss) 2,316,104 1,864,048 99$846 502,"RI 624,"185 36$ffiI Q49,614) 551,910 351,1"10 285,494
Gaivovsaleof�pifzlassets 2q634 - 4,2Y1 23,SR 12,342 Iq546 3,991 43,904 Q5,151) -
Tvvsfus (4,312,159) (3,459,013) Q,134,566) 428,Y10 43$800 413,895 315,266 �Rq"142) 613,518 (33q219)
Spetlal itarrgolf m�useloav N�v�ess 1,02q000
TOWgovertu�evWaNvitlu 11,08q688 11,583,829 13,42"1,364 14,210,301 14,104,"153 14,609,439 14,880,911 13,855,514 I5,"R3,930 IS$Iq655
B�sivus-typeadivities:
Gavtsavtl mvtnb�tiovs vot vestnctetl to
sPetlficPmgams "1,"136
Umestnctetlivvutm�t�mivgsQoss) 491,391 4"13,098 1"16,619 119,"TR 162,296 118,396 (45,902) 199,1"19 13"1,896 96,851
Gaivovsaleof�pifzlassets - - - - - - - - - 1,988
Tvvsfus 4,312,159 3,459,013 1,134,566 (428,Y10) (43$800) (413,895) (315,266) "Rq"142 (613,518) 33q219
TOW b�sivus{ypeaNvities 4,803,550 3,932,111 1,311,185 (30$498) (Y16,504) (295,499) (421,168) 919,921 (4"15,982) 436,"194
TOW Pnrterygovaeu��t $ 15,884,238 $ 15,515,940 $ 14,"13$549 $ 13,901,803 $ 13,82$249 $ 14,313,940 $ 14,459,803 $ 14,"TI5,495 $ 15,24"1,948 $ 15,80],449
Ct¢e�geivNdPositiov
Govmu��fzladivitles $ 11,34$"100 $ 3,616,919 $ 2,193,661 $ 2,226,524 $ 2,555,694 $ 1,044,004 $ "1,33$964 $ 5,256,24"1 $ 2,"164,924 $ 92q598
B�sivus-typeadivities 5,554,339 4,638,265 2,10"1,161 365,908 20q914 644,634 639,"109 2,083,203 p,124,505) (492,194)
TOWpnrterygovaeu��t $ 16,903,039 $ 8,255,244 $ 4,30q828 $ 2,592,432 $ 2,"156,608 $ 1,688,638 $ "1,91$613 $ "1,339,450 $ 1,64q419 $ 42$404
Notu: (1)Coemm�utity DevOopmevt is iv G�eeal Govemmevt ie�2011 ffi
Q)Golf Cowseveclassifletl to a spetlal vevev�e Iwtl ie�2013.
143
CITY OF WTTAGE GROVE,MINNE90TA
fTJND BALPNCES OF 60V ERNMENTAL fTJNDS Table3
Le4Tm Fiscel Yeers
(modiEed ecrnuel besis of ecm�vtiv�
Fiscel Yeer
20G'] 2008 2009 2010 20ll 2012 2013 2014 2015 2016
Gmaal Fund
Resaved $ "],3ffi $ $060 $ 35,038 $ 33,905 $ - $ - $ - $ - $ - $ -
Uvruerved 8,382,550 $81"],"]3] Q096,54"] Q105,235 - - - - - -
Novspmdeble
Prepeiditans - - - - PA,382 5,"]64 13,1"]5 1$019 15,383 11,P22
Assi�ed - - - - 1,611,4Z] 1,695,203 1,443,PA3 1,38Q698 1,408,35] 1,393,200
Uvessi�ed "],1"]$108 "],44Q565 "],"T]$548 $113,4PA $829,65] QG3Q425
Tofelgmaelfuvd $ $38Q8"]6 $ $825,"]9] $ Q131,585 $ Q13Q140 $ $813,91"] $ Q15Q532 $ Q231,966 $ Q512,141 $ 1Q253,43"] $ 1Q44Q&!"]
All otha 6ovaxvnmfel F�vds
Resavedreportzdin�
SpuielRevm�eFwds $ 1,4"]5 $ 1,225,825 $ 1,G']6,850 $ 1,Z13 $ - $ - $ - $ - $ - $ -
DebLSaviceFwds $"]35,656 QS&],5&] 6,G']6,380 $T6,563 - - - - - -
CepifelPrjedsF�vds 2,323,835 3,1P2,128 SOQ000 2Q498 - - - - - -
Uvruerved repertzd iv:
SpuielRevm�eFwds 5,8"]6,3"]8 5,454,39 6,05$259 6,366,G'T] - - - - - -
DebLSaviceFwds 3,016,"]33 1,65$843 4,G']t,"]40 4,"]ffi,6"T] - - - - - -
CepifelPrjedsF�vds 4,96Q486 5,945,9&! 14,8Z1,"]0] 14,�4,338 - - - - - -
Novspmdeble
Prepeiditans - - - - 938 938 1QP29 $529 "],343 5,"]23
Ivventrny - - - - - - 31,61"] PA,434 2Q696 2$"]50
Restricted - - - - 3,445,145 2,95],P20 4,34"],850 4,4"]$812 4,851,365 3,20Q692
Cortvnitted - - - - 833,500 560,321 416,OZ] 329,&!1 394,204 "]31,090
Assi�ed - - - - 21,54Q5]"] 20,PAQ161 P2,936,"]33 25,591,181 ffi,322,T"] 23,020,349
Uvessi�ed (2,1"]4,299) (Q521,9G']) (1Q31Q96� (1Q95$389) (Q122,4"]3) (1QPAQ49�
Tofelellothagovanmmfelfuvds $ PA,923,563 $ Z1,034,688 $ 32,61Q936 $ 34,3P2,4ffi $ 23,615,861 $ 14,Z16,"]33 $ 1"],362,491 $ 1Q4"]4,408 $ P2,4"]Q852 $ 16,"]46,108
Tofel ell fwds $ 33,313,439 $ 3$86Q485 $ 41,"]42,59 $ 43,461,566 $ 32,45Q"T18 $ 23,4Z1,ffi5 $ ffi,594,45] $ 28,98Q549 $ 32,"]33,289 $ Z1,18Q955
Nofes
The vnplemmfetion of 6ovanmmfel Acmwtivg Stavdards Board SfeGmmtNc.54 in 2011 ru�lted in e si�iEcent chenge in the City's fwd belence dessiEcetiovs.
144
CIiY OF COiiAGE GRO VE,MIIVIVESOiA
CHANGES PI FUND BALANCES OF GOVF32NMFNTALFUNDS iable d
Iast TevFis�1 Y�rs
(moNfietlacmral basis ofacmwW�
Fis�1 Y�r
200] 2008 2009 2010 2011 2012 2013 2014 2015 2016
Rrv
GevaalP�P�➢�es $ 11,061,434 $ 11,533,333 $ 11,"145,148 $ 11,456,224 $ 11,539,640 $ 12,361,918 $ 12,081,"164 $ 12,68"1,91"1 $ 13,465,951 $ 13,951,128
Otherfzxu 1,305,231 1,319,096 1,54"1,516 1,801,359 1,50"1,922 1,456,300 1,513,"149 1,292,229 I,Y14,31"1 1,332,"140
Spetlalassusm�ts "1,322,653 4,IIq568 4$R,581 2,899,954 I,SI5,486 1,153,019 1,515,"136 1,326,01"1 1,499,"196 2,004,196
Gc�suae�tlpamits 1,013,351 1,029,559 683,204 "153,468 593,YR 831,651 86q954 904,400 1,305,442 1,323,680
Divecttlravgestotlrvelopas 2"1,442 35,"ISI 24,"186 Sq04"1 101,913 16,555 2,106,"R3 661,861 30"1,911 YI"1,860
Ivtagovertu�evW 4,66q453 1,15$"160 1,226,818 1,166,"185 3,519,411 2,684,040 4,642,"168 3,932,021 2,415,"154 5,642,451
CNuguNrsavices 2,183,"ISI 2,32$913 2,63q298 2,66$428 2,494,018 2,46"I,ISI 4,023,844 3,SR,351 3,80$618 4,061,301
k�t 435,915 45q428 464,0]8
FivesavtlNRats 223,463 224,80] 192,169 201,559 246,"153 19$022 18$651 1"11,31"1 22$642 236,260
Ivvutm�t�mie�gsQoss) 1,699,306 1,412,432 508,246 35q613 44$"Iffi 196,519 Q"13,261) 452,293 262,"199 219,963
Ivtautovivtalwtlloae� 496,4"18 361,341 45$001 13q000 144,500 155,301 4"1,025 59,066 "14,340 52,040
Coemectiovtlravgu 41"1,092 14$434 201,463 439,238 322,009 282,265 805,261 841,434 31$092 649,489
ParktleN�tiovku "18$1"TI 21,"10] 64,584 145,640 62,198 41,990 252,386 63,595 9,010 212,865
Misc0lae�eo�s 2,98q621 "105,10] 614,038 609,809 595,218 601,255 "105,409 1,005,861 1,138,Y14 1,864,861
TOW vevev�u 34,185,458 24,389,844 24,32$912 22,613,184 23,811,122 22,452,4"18 2$631,009 Y1,406,343 26,559,4"10 32,29$912
Fs.p�tlitwe
Purevt
Gevaalgovemmevt 4,03q450 1,91$"114 1,"159,695 2,0]I,"115 2,942,106 2,689,156 2,0]I,YR 2,025,"109 2,155,3Y1 3,143,136
Cortumuut➢tlevOOPmevt "18$811 894,642 1,102,"140 1,132,IY1 - - 892,699 919,126 1,05$531 1,11"1,"160 (1)
Emvorttictlrvelopm�t - - - 299,614 "193,046 491,040 151,562 541,838 1,456,306 2,236,464
P�blicsalHy 5,125,04"1 5,19q603 5,295,003 5,493,30] 5,82"I,SR 6,151,6"TI 6,29"1,323 6,484,552 6,"151,804 "1,44"1,058
P�blicwoeks 3,106,491 3,35$9Y1 3,4"16,"194 3,33"1,054 3,"T14,559 4,059,582 4,Y11,651 4,306,068 4,344,831 4,133,659
CWtweavtivev�tiov 1,915,083 2,036,414 2,023,085 2,33q909 2,326,"133 2,38"1,655 3,954,968 4,169,469 4,154,992 4,43$628
Capifzlo�tlay 14,105,231 15,003,669 2,99q009 3,383,343 IqSI"1,928 15,42q808 12,Y14,561 5,02$422 "1,036,802 1"1,201,219
Debt Savice
Peie�tlpalativar��t 2,"IOq000 1,845,000 3,"I55,000 1,625,000 "1,135,000 1,335,000 95q000 2,4"Iq000 1,32q000 6,SIq000
Capifzll�sepayrtwnt 3$14 3,6Y1 IS$900 239,189 245,000 25q000 293,953 305,0]6 316,235 32"1,432
Debtpayrtwnttommpov�t�utit - 61$880
Ivtautae�tlfls�ltlravgu 1,30$S16 1,15$"108 1,64q143 1,101,145 906,910 849,046 "169,129 882,508 912,10] 1,023,"RI
TOW c.p�Ntwu 33,143,363 32,149,184 22,201,369 21,013,403 34,82$854 33,633,964 31,92"1,118 Y1,132,"168 29,506,94"1 4"1,639,OT1
Fxcessvevev�uover(wtle�c.p�Ntwu 1,042,095 (1,"159,340) 2,12"1,543 1,659,"181 p1,01"1,"132) p1,181,486) (3,296,109) Y13,515 (2,94"1,4"TI) p5,34q165)
OtherFiree�tivg 5owces(Uses)
Tvvsfusiv 2,58q150 2,615,0]4 2,942,924 1,233,938 3,052,403 2,1"11,149 "159,446 1,84q995 3,049,651 1,648,258
Tvvsfuso�t Q,58q150) Q,309,809) Q,942,924) Q,246,180) (3,04$803) Q,881,510) (638$14) Q,213,059) Q,362,952) Q,162,564)
Bovtlsismetl - 3$Iq000 3,685,000 - - 1,865,000 "1,345,000 1,405,000 5,"IOq000 $935,000
Capifzll�seismetl - 6,SOq000 - - - - - - - -
Pvarii�movtlebtismetl - 2"1,946 22,"105 - - - 211,50] 1$461 254,245 35"1,684
Dismwtovtlebtlsmetl - - Q,906) - - Q5,852) - - - -
Pmceetlsfiomsaleof�piWassds 22,412 43,1"IS 49,694 "11,506 12,344 Iq546 2"1,195 6"1,120 53,261 15,453
TOWotherfle¢voe�gsowces(�su) 22,412 10,306,386 3,"154,493 59,264 15,944 2,148,913 "1,"104,"T14 2,11$51"1 6,694,21"1 9,"193,831
Nettlravgeivlwtlbalavces $ 1,064,50] $ 2,54"1,046 $ 5,882,036 $ 1,"119,045 $ QI,001,"18� $ (9,032,51� $ 4,40$665 $ 2,392,092 $ 3,"146,"140 $ (5,546,334)
Debt saviceasa pac�fzge of
vov�pifzlv.^p�tlitwes 21l% 215% 289% 16B% 34.6% 134% 102% 165% 113% 26.0%
Note (1)Cortumuuty Drvelopm�t is iv Gevsil Govaeu��t iv2011 ffi2012
145
CITY OF COTTAGE GROVE,NIINNESOTA
ASSESSED AND ESTIlVIATED ACTUAL VALUE OF TAXABLE PROPERTY Table 5
LastTev Fiscal Years
T�ble
TotalT�ble Assessed Esm�ated
Revd�tial Realand FiscalDisparity TotalAdjurted Valueasa AcmalTazable
Payable Revd�tial Commeual Agiculmcal Nou-Romestead Pesoual Pesoual Coutributiou(Nm) Tazable Pec�tageo[ Market TotalDicect
Year Propv�ty Propv�ty Propv�ty andONv� Propv�ty Propv�ty andTIF Value TvableValue Value Taz£Gte
2016 $ 21,3T1,"]54 $ $203,65] $ "]61,424 $ 2,"]49,"]93 $ 6]$862 $ 3Q"n1,490 $ 3,551,35] $ 34,334,88"] 1.23% $ 2,"]9Q852,600 43.140
2015 2Q"]30,1"]0 $093,035 "T16,515 2,609,305 633,"]8"] 29,842,8"]2 3,544,899 33,38"],"Tlt 1.23% 2,"]05,5]$400 41591
2014 18,ll4,214 $001,690 "]61,Z19 2,2U1,013 622,518 26,"]06,"T14 2,264,989 28,511,"]63 1.21% 2,39Q493,"]00 43.812
2013 1"],241,606 $U16,T6 "]OQ036 1,920,395 612,U16 2$SSQ829 2,134,831 Z1,68$660 1.22% 2,2J1,90Q"]00 45.046
2012 19,042,Z10 $094,236 "]24,88"] 2,010,313 56$U18 Z1,439,"]84 2,626,"]02 3Q06Q486 1.22% 2,464,312,900 41446
20ll 21,31Q906 5,12Q056 "T18,196 2,003,968 SSQ999 29,"T10,125 2,"T15,315 32,54$440 1.21% 2,69$641,900 38.255
2010 23,32Q829 $551,410 612,344 2,231,128 502,282 32,289,993 2,26$060 34,55$053 1.18% 2,924,191,800 35415
2009 24,"]2$529 $511,940 613,932 2,28"],839 451,621 33,63Q861 2,29$610 3$932,4T 1.1"]% 3,05$231,500 34.632
2008 24,639,556 4,64Q"]30 536,1"]3 2,163,150 481,Z15 32,46Q884 2,14$513 34,606,35] 1.16% 2,986,391,"]00 35.189
20U] 23,"]30,514 4,339,196 460,308 1,904,124 49Q"]08 3Q925,310 1,898,518 32,824,288 1.15% 2,84$502,600 35.813
Soucce: Washivgrov Co�vty
Notes
Q)The ta:npadty(assessed ta:able val�e)oftlie pmperty is calc�la[ed by applyivg a
staNmry foem�la m tlie estimared marke[val�e of tlie pmpury.
146
CITY OF COTTAGE GROVE,MINNESOTA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENCS Table 6
Last Ten Fiscal Years
(rate per$1,000 of assessed value)
Ciry DirectRate(1) OvedappingRates
Total Dirut and
TotalCiry WashingWn School Total OvedappingTax
General DebtService DirutRate Counry District(2) Otlier(4) Ovedapping Rate
2016 40.422 2J17 43.139 30.564 36.812 4.568 71.J44 115.083
2015 38.886 2J05 41.591 30.186 35.675 4.182 70.M3 111.634
2014 40.976 2.836 43.812 32.811 39.169 5.401 77381 121.193
2013 42.665 2381 45A46 34.225 41.285 5.637 81.147 126.193
2012 39.065 2381 41.446 31.939 37.8J4 5.139 74.972 116.418
2011 34.500 3J55 38.255 29J72 35.216 4J15 69J03 107.958
2010 31J80 3.635 35.415 27J75 31.650 4.499 63.924 99339
2009 30.825 3.807 34.632 26371 30J08 4.268 61347 95.979
2008 31.548 3.6�V1 35.189 25.936 29.841 4.206 59.983 95.172
2007 32.022 3J91 35.813 25.673 31.101 4.093 60.867 96.680
Sowce:Washington Counry
Overlapping rates are those of local and counry gove�nments that apply W property owners within the Ciry of Cottage Grove.
Not all overlapping rates apply W all Ciry of Cottage Grove properly owners.
(1)The Ciry Direct Rate is the Urban based rate.
�z�r�a�,�a�e s�hooi��so-��e s�s
(4)Includes Metropolitan Transit Commissioq Metropolitan Council, and South Washington Watershed
14�
CITY OF COTTAGE GROVE,MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Qnrentyear and nineyears ago
2016 2007
Percenhege Percentage
ofTotal ofTohel
ciry ciry
NetTax Tax NetTax Tax
Capaciry Capaciry Capaciry Capaciry
TaYpayer Value Rank Value Value Rank Value
Xcel Energy/NSP $ 652,898 1 1.98% $ 477,209 2 138%
3M Comparry 625,241 2 1.90% 570,732 1 1.65%
Menard Inc. 178,806 3 0.54% 188,272 5 0.54%
Mars II Inc. 169,544 4 0.51% 20Q342 3 0.58%
DayWn-Hudson Coiporation 154,230 5 0.47% 167,904 6 0.49%
Wal-MartRealEstateBusinessTrust 149,612 6 0.45% - -
Renewal6yMdersenCoiporation 144,534 7 0.44% 193,136 4 0.56%
PHM/Codage Grove Inc 187,420 8 0.57% - -
Grove-RainbowLP 135,516 9 0.41% - -
WerDisLLC 131,250 10 0.4W/o - -
HomeDepotUSA,Inc - - 136,006 7 039%
South StPaul Agri-Properties - - 13Q800 8 038%
Kohl'sDepartmentSWresInc. - - 125,694 9 036%
FirstTrustCo. ofStPaul - - 135,589 10 039%
Total $ 2,579,051 7.67% $ 2,325,684 6J2%
Sowce: Washington Counry
148
CITY OF W TTAGE GRO VE,MINNESOTA
PROPERTY TAX LEVIES AND COLLECPIONS Table 8
Last Tev Fiscal Years
Collected withiv the
Ta:es Levied fa tlie Fiscal Year Fiscal Year ofLevy Total Collectiovs ro Date
Percevtage Collectiovs Pucevtage
Fiscal GmssOperativg Debt NRIHG SnteAid TotalNet of ivS�bseq�evt of
Year Ta:Levy Ta:Levy AgQerlitQ) C�t Ta:Levy Amo�vt Levy Abatemevtx Years Amo�vt Levy
2016 $ 13,1"]4,084 $ 89Q000 $ (9,"]0� $ - $ 14,054,3T] $ 13,991,560 9955% $ 6,T"] $ - $ 13,991,560 9955%
2015 12,52Q600 8"]$500 ($"]22) - 13,393,318 13,32Q9ll 9950% 3,"]3] - 13,32Q9ll 9950%
2014 11,8"]3,130 82Q000 ($94"]) - 12,693,183 12,61Q243 9935% tt,ll2 "]$201 12,68$444 9994%
2013 11,585,100 656,150 (5,354) - 12,23$896 12,ll4,166 99.01% (21,952) 82,53] 12,196,"]03 9968%
2012 11,683,300 551,950 (4,"]62) - 12,23Q488 12,104,U12 9892% (23,26]) 99,615 12,203,68"] 99"]3%
2011 11,035,100 1,206,150 (4,350) (690,152) 11,546,"]48 11,39$"]5] 98b9% (2$901) ll8,312 11,514,109 99"]2%
2010 1Q903,300 1,251,"]00 (4,63]) (629,015) 11,521,348 11,35$969 9859% (33,54"]) 125,13] 11,484,106 9968%
2009 1Q"]84,900 1,661,600 Q"]Q941) (412,323) 11,851,236 11,591,141 5]]6% (51,610) Q) 164,"]52 11,"]5$893 99.15%
2008 1Q92Q"]00 1,263,300 (30Q555) (295,108) 11,582,33] 11,354,286 98.03% (4"],239) 1"T1,249 11,531,535 9956%
20U] 1Q56$850 1,253,600 (61"],641) - 11,204,809 10,515,151 51.95% (3,585) 224,952 11,200,103 9996%
Nores
Q)Iv 2009 a propury ta:dassiCrnnov appeal for ove pmperty owe�erreml[ed iv a large aba[emev[.
149
CITY OF WTTAGE GROVE,MINNE90TA
R4TI05 OF OUTSTPNDING DEBT BY TYPE Table 9
LesLTm Fiscel Yeers
6ovanmmtal Activitiu B�sivus-TypeActivitiu
Genaal Obligation
6mere1 6mere1 Spuiel Otha Otha Tofel Pacenfege
Fiscel ObligeticnTez Obligetiov Assusnenfs Cepifel Lovg-Taxn Revm�e Cepifel Lovg-Taxn Rvnery ofPasovel Pa
Year IncremmtBcnds(1) Bcnds(1) Bcnds(1) Leeses Debt Bovds(1) Leese Debt 6ovemmmt Income(2) Cepife(2)
2016 $ 2,096,395 $ 4,66Q000 $ 20,61Q"]30 $ - $ - $ - $ - $ - $ Z1,436,125 tA2% $ "T10
2015 2,30Q130 - 1"],961,105 4,842,432 - 60Q856 - - 25,"]25,523 134% "]22
2014 2,516,865 - 13,14Q"]68 5,15$66] - T"],P21 - - 21,533,59 1.12% 605
2013 2,60Q000 - 14,125,919 5,463,"]43 - 8PA,586 - - 23,014,308 125% 650
2012 2,"]35,000 - "],332,PA5 5,615,000 - 1,036,584 142,696 90Q000 1"],"]61,525 0.9]% 505
2011 2,"]9Q000 - 6,"]63,86] 5,865,000 - 1,456,06] - 90Q000 1"],"]"]4,934 1.01% 510
2010 2,83Q000 - 13,832,619 6,11Q000 - 1,814,1"]8 - 90Q000 25,486,8Z] 156% "]3"]
2009 2,925,000 - 15,3"]5,000 6,34Q189 - 2,36Q000 Q085 90Q000 Z1,91$Z14 1"]6% 816
2008 3,95,000 255,000 14,90Q000 6,50$089 - 2,835,000 96,"]42 90Q000 2$"]OQ831 1"]6% &!4
20G'] 3,49Q000 495,000 12,86Q000 11,T6 65,313 3,31Q000 146,606 90Q000 21,Z]$635 134% 630
Notes�. DOeils regardivg the CiC�'s o�f tendivg debt cen be fowd in the vofes W ihe Evevciel AetanenGc
(1)Ruented vet of cnginel ismevce diswwfs evd prani�ms
(2)See the Danogiephic evd Eccnomic Sfetistics sched�le fcr pasovel ivecme end pcp�leticn defa
150
CITY OF COTTAGE GROVE,MINNESOTA
RATIOS OF GINERAL BONDED DEBT OUTSTANDING Table 10
Last Ten Fiscal Years
General Obligation Peroentage of
General General Special Less:Amounts Estimated
Fiscal Obligation Tax Obligation Assessmenfs Available in Debt Ach�al Taxable Per
Year IncrementBonds(1) Bonds(1) Bonds(1) ServiceFunds Total MarketValue(2) Capita(3)
2016 $ 2,096,395 $ - $ 2Q679,779 $ 4,098,850 $ 1$677,274 0.67% $ 522
2015 2,309,130 - 17,96�V,105 3,773,605 16,499,630 0.61% 463
2014 2,516,865 - 13,140,768 2,833,208 12,87A,425 0.54% 360
2013 2,60Q000 - 14,125,979 3,SSQ891 13,175,088 0.58% 372
2012 2,735,000 - 7,332,245 2,377,981 7,689,26�V 031% 219
2011 2,79Q000 - 6,763,867 1,499,819 $054,048 030% 231
2010 2,83Q000 - 13,832,649 5,512,986 11,149,663 038% 322
2009 2,925,000 - 15,375,000 5,031,380 13,268,620 0.43% 388
2008 3,215,000 255,000 14,90Q000 5,725,764 12,644,236 0.42% 372
2007 3,49Q000 495,000 12,86Q000 6,179,732 1Q665,268 037% 316
Notes: Deheils regarding the Ciry's outstanding debt can be found in the notes W the fmancial statemenfs.
(1)Presented net of original issuance discounts and premiums.
(2)See tlieAssessed and Estimated Ach�al Value ofTaxable Roperly for estimated actual taeable marketvalue
(3)See tlie Demographic and Economic Statistics schedule for population data.
151
CTTY OF COTTAGE GRO�E,MINNESOTA
DIl2ECT AND OVERLlPP1Na(30VII2NMENTAL ACTNITIES DEBT Table ll
AsofDecem6er31,2016
ary of comge aro�e
%ofDebt Share of
NetDebt Applicable Overlapping
OWstar�divg mCity Debt
Overlapping:
w�w.�e�co�ry a ns,�q000 iz.3ccri a ic,osq�ao
School DisMcts
isnNo.zoo�se�gs) 33,9vq000 i3xss3i a,no,a3c
isnNo.s33�so�mwa�,.cowry� 3�,aas,000 3oxaisi vs,�s,�s�
Metro Cowdl 146,405,000 1.1108% 1,626�1.6�
Total Ovedappivg 1ll,�63240
CiryofCoHage(3rweDirectDebt $ 22T/6125 100.00'/ 22T/6125
Tota1D'vec[ar�dOvalappingDebt $ 642,1A6,125 $ 140,539�65
Sowca City of CoHage Cwe Mwicipal Discloswe Reporting
Notes:Ovalapping gwaxunen6 are those ttat coincidq at least in pat,with the geograplilc bowdaries of ihe City.lfiis scheAile
estimates the porton of ihe oWstar�ding debt of ihose walapping gwmunerds that is bome by the residen6 ar�d businesses of the City.
11us process recogNzes ttut,when conside�ing the Citys a6iGty w issue and repay long-k�xn de6S�e e�re debt bwdm bome by
theresiden6ar�d6usinessesshodd6etakeninwaccowtHowrvqttrisdoesmtimplythatrvayh payaisaresidenq
and thaefore responable for repaying ihe debt,of each werlapping gwe�mnmt.
152
CIiY OFCOiiAGE GROVE,MINNESOiA
LEGAL DEBT MMGIN INF02MATION iable li
Ias[Tev Fiscal Y�rs
Fisd Y�r
2� 2008 2009 2010 2011 2012 2013 2� 2015 2016
�ebHimie 8 549�qost 8 a5,55�,�5� 8 5�,�4�,�x5 8 s�,'rz5,�54 8 a4ae5,xn 8 'ri,53�,�a� 8 a&33Zox� 8 �4a54,au 8 a�,n5,xex 8 5;�4q4�x
TotalvetdebtapplicableNlimit 49$000 6,"]5$000 434$000 6,IIq000 $86$000 $61$000 $35$000 $08$000 4,80$000 4,66q000
Legaldeb[mar�v $ 544"]$OSL $ 82,834�51 $ 8$402,125 $ 81,61$"]54 $ "]$004,25] $ 68,314�8� $ 62982021 $ 64809,811 $ "]6,314,262 $ 89,08q412
Totalvetdebtapplicablem tlielimit
sapeaev2geofdebHimit O.S]% Z54% 692% 696°/ Z25% Z59% Z84% "].0"]% 592% 4Y]%
Legal Deb[Margiv Calwl�iov f rFisd Year 2016
MarketVal�e(aflerfiscalrlisparities) $ 2"]94832,600
�enetimie(3ioezssesseaval�e) a3�zs,na
DebtapplicableNlimit 4 660 000
Legaldebtmar�v $ "]9,065,518
153
CITY OF COTTAGE GROVE,MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13
Last Ten Fiscal Years
Per
Capita
Fiscal Personal Personal School Unemployment
Year Population(1) Income(2) Income(2) Enrollment(3) Rate(4)
2016 36,062 $ 2,105,690,772 $ 58,392 17,794 3.4%
2015 35,814 2,012,741,903 56,200 17,893 3.9%
2014 35,619 1,926,6�V3,820 54,090 17,685 3.9%
2013 35,403 1,843,08Q180 52,060 17,671 4.8%
2012 35,187 1,823,284,779 51,817 17,639 SS%
2011 34,828 1,76�V,595,448 SQ666 17,389 6.0%
2010 34,589 1,638,619,286 47,374 17,060 6.9%
2009 34,213 1,583,309,214 46,278 16,795 7b%
2008 34,017 1,63Q264,725 47,925 16,800 4.9%
2007 33,788 1,588,272,516 47,007 16,805 3.9%
Sowces:
(1)Metropolitan Council-2002-2009&2012-2013. Census-2010. Codage Grove Planning DepartrnenG20142016.
(2)Washington Counry data from Bweau of Economic Analysis.
(3)Independent School DistrictNo. 833 including Valley Crossing School.
(4)Minnesota Department of Employment and Economic Development
154
CITY OF COTTAGE GROVE,MIN1VE60TA
PRINCIPAL EMPLOYERS Table 14
Clvrentyeac andniveyears ago
2016 200]
Percentege Percentege
ofTotal ofTotal
Tar.payer Employees Rznk Employment Employees Rank Employment
SchoolDistrict833 2�13 1 32% 1,149 1 ll%
3MCottage6rwe ]50 2 10% ]50 2 11%
RenewalbyMdersen 450 3 6% 250 4 4%
Walmart 335 4 4% - - -
Up-NorthPlastics 300 5 4% 280 3 4%
Q�b Foods 200 6 3% 141 8 2%
C1ryofCottage(3rwe 1]6 ] 2% 119 10 2%
WerverFAectric 1]0 8 2% - - -
Menard's 150 9 2% 200 ] 3%
Tacget 130 10 2% 212 5 3%
CommeraalCarriersIvc - - - 200 6 3%
RzivbowFoods - 136 9 2%
Total 5,1]4 6]% 3,43] 52%
Sources:
Clly of Cottage(3rweAnn�a1 Mwiapal Disclosure Reportivg and Cottage(3rwe Economic Developruent Departrnent.
155
CITY OF COTTAGE GROVE,MINNESOTA
FTJLL-TIMEEQUNALENT CTTY GOVERNMEIVT EMPLOYEFS BY FTJNCTION Table 15
Last Tev Fiscal Years
B�dgeted Fhl4time Fq�ivalevt Employees as of December 31
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Geveral Gwemmevt
TotalGeveralGovemmevt 23.03 22.48 21J6 21J6 21J6 22.06 2338 23.40 2325 25J0
P�blic 3afery
Police/Cottage Grove EM3
Officers 39.00 39.00 39.00 39.00 39.00 39.00 39.00 40.00 40.00 43.56
Civilians* 9.40 9.10 725 725 725 8.46 8.09 826 7.56 7.56
Fire/EmergevcyManagemevt 4.00 4.00 4.00 4.00 4.00 4.00 5.00 7.00 9.00 11J5
TotalPublicSafety 52.40 52.10 5015 5015 5015 51.46 52.09 5516 56.56 62.87
Public Works 22.56 21.56 21.56 21.56 21.56 20.83 21.68 23.68 24.08 22.12
Recrea[ionandSwimmingPool 3.00 3.00 2.50 2.50 2.50 2.50 2.55 2.55 2.55 2.55
Ice Arena 2.60 2.60 2.60 2.60 2.60 310 3.65 3.65 3.65 3.55
Wa[edSewer 10.04 936 836 836 836 813 8.18 8.18 818 918
Stonn Sewer 3.40 3.40 3.40 3.40 3.40 3.54 3.54 3.54 3.54 3.54
GolfCourseFund 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
StreetLightFund 1.04 1.04 1.04 1.04 1.04 1.06 1.06 1.06 1.06 1.06
FleetMaintenance 3.84 3.84 3.84 3.84 3.84 4.04 4.04 4.04 4.04 4.04
Total 126.91 12438 12031 12031 12031 121.92 125.17 13036 132.01 139J1
3o�rce:City of Cottage Grwe Fivance Office
*Dispa[ch services were transfeaed to Washingtov Co�vty iv 2007. 3ir,positiovs were
transFe�red to tlie Co�vty as part oftliis transitiov.
156
CITY OF W TTAGE GRO VE,MINNESOTA
OPERATING IlSDICATORS BY FUNCITON/PROGRAM Table 16
Last Tev Years
Fiscal Year
F�vctiov/Fro¢ram 20U] 2008 2009 2010 20ll 2012 2013 2014 2015 2016
GeveralGovemmevt
Electior�s 2 2 2 2 2
Registeredvotuxasof"]amelectiovday 20,358 2Q6U] 21,ll9 2Q"]80 21,594
N�mberofvoresnst 19,050 13,345 19,"]Z] 11,166 19,"]99
Voterpartidpatior�(vegistued) 9358% 64"]6% 9341% 53"]3% 8450%
(elernovs are held every otheryear)
Comm�vityDevelopmev[
Ie�spec[iovs
B�ilrlivgPumits(NewDwellivgUvitx) 6] 89 66 89 49 53 56 "T] 65 99
CodeEvfacemevtle�spectior�s 1,032 1,"n] 1,"]59 1,44"] 1,Z16 2,4U] 2,826 1,482 1,013 841
P�blic Safety
Polic
Wmes-FartI 892 850 "]43 614 694 "]56 "]83 "T14 T9 613
Wmes-FartII 2,883 2,4"]2 2,4"]8 2,055 2,ll"] 1,614 1,4"]3 1,434 1,419 1,424
Tota1Ca11sforService 2Q469 20,356 19,434 20,104 2Q"]U] 1"],348 18,151 1$448 20,516 21,331
Five
Merlical 1,250 1,442 1,"]65 1,968 2,000 2,34"] 2,43] 2,562 2,464 2,681
Five 580 553 556 643 456 295 280 301 290 Z19
AvgRespovseTime(miv�res)Merlical* v/a v/a v/a v/a 838 6:51 695 699 693 6.21
AvgRespovseTime(miv�res)Five* v/a v/a v/a v/a 8.24 8.04 "].25 "]34 "].06 6:54
AvgRespovseTime(miv�res)Both* 85] 8:54 8:59 9�.01 836 6:59 6.22 6.Z] 696 6.24
*Evtive serv�ce area
P�blicWovks
Sq.Yards ofStreetx Sealwated 404,821 425,ST] 352,953 349,349 382,314 48$210 451,Z15 199,"]25 ll8,159 193,249
NlilesofSxeetsNewCovstr�ctiov 0"]3 0.00 0.00 0.26 1.12 030 1.23 199 056 t.11
Nlilesofwatumavadded 2.06 tb8 0.00 039 0.63 0"]9 242 184 1.06 1.20
Swme Vano�sQtyofConageGoveDepartmevts
Nores
Q) Ivfoematio�mtavailableislabeledv/a
15]
CITY OF COTTAGE GROVE,NIINNESOTA
CAPTTAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 19
LastTev Years
Fiscal Year
F�vctiov/Pmgvam 2006 20U] 2008 2009 2010 20ll 2012 2013 2014 2015 2016
P�blicSafery
Polic
Seatiovs 1 1 1 1 1 1 1 1 1 1 1
PatrolUvitx 12 12 12 12 12 12 12 13 13 13 13
Five
Statiovs 4 4 4 4 4 4 4 4 4 4 4
FiveTmcks 6 6 6 6 6 6 6 6 6 6 6
P�blicWovks
CitybwvedLightx 2,2U] 2,Z10 2,Z13 2,Z13 2,Z19 2,320 2,345 2,416 2,481 2,495 2,592
Xcel owe�edLights 301 301 301 301 301 301 301 301 301 301 301
Streetx(miles) 154"]2 15545 15545 15545 155T 156.83 151.13 15836 16035 16091 162.02
Sidewalks/trals(miles) 39.01 4135 44.23 44.Z] 4640 48.25 48.61 5382 51.83 5956 6198
Parks(aQeage)
Comm�viryParks 330 368 3T] 3T] 3T] 3T] 3T] 3T] 3T] 400 400
NeighbovhoodParks 201 201 201 201 201 201 244 Z15 303 Z15 Z15
ReQeatiovfadlines 21 21 21 21 21 21 21 21 21 15 15
Co�vry Parks 539 552 511 511 511 511 511 511 511 569 569
SnteSdevnEcandNamveAvea 238 238 238 238 238 238 238 238 238 238 238
Go1fCo�ae 219 219 219 219 219 219 219 219 219 219 219
O[herOpevSpace 406 450 453 453 453 453 453 581 581 961 961
Water
N�mberofCovvectiovs 1Q056 1Q056 1Q298 10,381 1Q423 1Q4"]4 1Q538 10,513 1Q640 1Q"]06 1Q"]89
NlilesofWaterMavsandLareals 139.11 141.1"] 14285 14285 143.24 143.8"] 144b6 14"].08 14892 14998 151.18
Sanitary Sewer
N�mberofCovvectiovs 9,998 10,143 1Q209 10,330 10,382 1Q433 1Q486 1Q532 1Q604 1Q610 1Q"]33
NlilesofSanitarySewerMavsandLatuals 124.00 126"]2 126"]2 126"]2 1Z1.02 1Z1.58 1Z1.99 12932 131.11 13145 132.81
Storm Sew
NLlesofsrovmsewux "]5.6] "T1.04 "Tl.t"] "T1.41 "]8.U] "]950 8039 8541 8"].81 8952 9394
Swme VanwsCityDepar[mev6
158