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CITY OF CENTERVILLE, MINNESOTA
<br />NOTES TO THE FINANCIAL STATEMENTS
<br />DECEMBER 31, 2015
<br />Note 6: OTHER INFORMATION - CONTINUED
<br />B. Legal debt margin
<br />In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of 3 percent of the
<br />market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore,
<br />excludes debt financed partially or entirely by special assessments, Enterprise fund revenues or tax increments. The
<br />market value of taxable property is $320,597,000 which leaves a debt margin of $9,617,910. Currently the City has
<br />$330,000 of general obligation debt outstanding, leaving a debt margin of $9,287,910.
<br />Note 7: CHANGE IN ACCOUNTING STANDARDS
<br />During 2015, the City implemented several new accounting pronouncements issued by the Governmental Accounting
<br />Standards Board (GASB), including Statement No. 68, Accounting and Financial Reporting for Pensions - an
<br />Amendment of GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to
<br />the Measurement Date - an Amendment of GASB Statement No. 68, for the year ended December 31, 2015. These
<br />standards required a retroactive implementation which resulted in the restatement of beginning balances in the December
<br />31, 2014 financial statements. Changes related to these standards are reflected in the financial statements and schedules
<br />and related disclosures are included in Note 4.
<br />As a result of the restatement of beginning balances, the following schedule reconciles the previously reported
<br />December 31, 2014 balances to the December 31, 2015 financial statements:
<br />Fund
<br />Governmental activities
<br />Business -type activities
<br />Business -type activities
<br />Water
<br />Sewer
<br />Storm Water
<br />Total business -type activities
<br />December 31, 2015
<br />Net Position
<br />January 1, 2015
<br />Net Position
<br />as Previously
<br />Prior Period January 1, 2015
<br />Reported
<br />Restatement (1) as Restated
<br />$ 10,622,139 $ (347,566) $ 10,274,573
<br />$ 11,322,608 $ (137,025) $ 11,185,583
<br />$ 5,775,889 $ (54,275) $ 5,721,614
<br />4,649,563 (54,290) 4,595,273
<br />897,156 (28,460) 868,696
<br />$ 11,322,608 $ (137,025) $ 11,185,583
<br />(1) To record beginning net pension liability, deferred inflows of resources and deferred outflow of resources at
<br />January 1, 2015.
<br />-68-
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