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<br />CITY OF CENTERVlLLE, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 3], 2002
<br />
<br />Note S: OTHER INFORMATION - CONTINUED
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<br />B. Segment Information for Enterprise Funds
<br />
<br />The City maintaillS two ente1Jlrise funds. The Water and Sewer funds account for the provision of basic utility
<br />services to aD citizellS. Selected segment information for the year ended December 31, 2002 is as follows:
<br />
<br /> Water Sewer Total
<br /> Operating revenue $ 158,122 $ 248,113 $ 406,235
<br /> Depreciation expense 30,718 28,528 59,246
<br /> Operating income 40,645 35,246 75,891
<br /> Net income (loss) (148,884 ) 69,810 (79,074 )
<br /> Contributed capital additions 334,735 220,205 554,940
<br /> Fixed asset additions 334,735 260,612 595,347
<br /> Net working capital 854,079 1,692,191 2,546,270
<br /> Total assets 2,979,065 3,686,281 6,665,346
<br /> Bonds payable 237,750 297,250 535,000
<br /> Total equity 2,437,661 3,197,592 5,635,253
<br />C. Legal Debt Margin
<br />
<br />In accordance with Minnesota statutes, the City may not inem or be subject to net debt in excess of2 percent of
<br />the market value of taxable property within the City. The total taxable market value of property within the City is
<br />$180,650,300, which leaves a debt margin of$3,613,006. Net debt is payable solely from ad valorem taxes and,
<br />therefore, excludes debt fmanced 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 />D. New Reporting Standard
<br />
<br />In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34 "Basic Financial
<br />Statement and Management's Discussion and Analysis fOT State and Local Governments." This Statement
<br />establishes new financial reporting requirements for state and local governments throughout the United States.
<br />When implemented, it will require new information and restructure much. of the infonnation that governments:
<br />have presented in the past. Comparability with reports issued in all prior years will be affected. The City is
<br />required to implement this standsrd for the fiscal year ending December 31, 2004. The City bas not yet
<br />determined the full impact that the adoption of GASB Statement 34 will have on the finaocial statements. These
<br />financial statements are presented in accordance with the financial reporting model in effect prior to that
<br />described in GASB Statement No. 34.
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<br />Note 6: FIRE PROTECTION DISTRICT
<br />
<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.
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<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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