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<br />CITY OF CENTERVILLE, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2001
<br />
<br />Note 5: OTHER INFORMA TlON - CONTINUED
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<br />B, Segment Information for Enterprise Funds
<br />
<br />The City maintains two enterprise funds. The Water and Sewer funds account for the provision of basic utility
<br />services to all citizens. Selected segment information for the year ended December 31, 2001 is as follows:
<br />
<br />Water Sewer Total
<br />
<br /> Operating revenue $ 184,481 $ 202,121 $ 386,602
<br /> Depreciation expense 30,717 28,382 59,099
<br /> Operating income 29,759 13,873 43,632
<br /> Net income 168,243 167,833 336,076
<br /> Contributed capital additions 233,063 315,861 548,924
<br /> Fixed asset additions 233,063 315,861 548,924
<br /> Net working capital 1,090,724 1,596,467 2,687,191
<br /> Total assets 2,729,427 3,505,492 6,234,919
<br /> Bonds payable 267,000 333,000 600,000
<br /> Total equity 2,251,810 2,907,577 5,159,387
<br />C. Legal Debt Margin
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<br />In accordance with Minnesota Statutes, the City may not incur or be subject to net debt in excess of 2 percent of
<br />the market value of taxable property within the City. The total taxable market value of property within the City is
<br />$154,675,000, which leaves a debt margin of $3,093,500. Net debt is payable solely from ad valorem taxes and,
<br />therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax
<br />increments. The City does not have any debt subject to the 2 percent limit.
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<br />Note 6: FIRE PROTECTION DISTRICT
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<br />In 1985, the City discontinued providing the fire protection services to the Centerville community. The City joined the
<br />Centennial Fire District (District), along with the cities of Circle Pines and Lino Lakes. The City contributed all fire
<br />apparatus and equipment items to the District. The City in turn will be receiving payments from the District of $2,270
<br />for 15 years on the apparatus values and $4,973 for 10 years on the equipment values. The Council passed a resolution
<br />to have these funds recorded in the City's fire capital projects fund. These payments are recognized as revenue when
<br />they are received.
<br />
<br />The City pays an annual membership fee to the District based on their percentage of the computed annual depreciation
<br />on the apparatus and equipment values. The District still houses equipment in the City's building and pays for a share
<br />of the utilities.
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<br />Note 7: COMMITMENTS
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<br />In 1997, the City entered into a Joint Powers agreement with the Anoka County Housing and Redevelopment Authority
<br />(ACHRA) to provide senior housing within the City. The ACHRA has issued $1,290,000 of Housing Development
<br />Revenue Bonds to provide for construction costs of the project. The City has reserved $71,631 in the Sewer Enterprise
<br />Fund in accordance with the agreement with ACHRA. This amount is to be used in the event revenue is not sufficient
<br />to cover operating expenses and debt service. The City would also be liable for any deficit above the amount reserved.
<br />This commitment exists until December 31, 2012. No expenses were incurred relating to the commitment in 2001.
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