City of Monticello, Minnesota Telecommunications Revenue Bonds (Fibernet Monticello Project) Quarterly Report as of December 31, 2012 CUSIP #: 614491 Telecommunications Revenue Dated Date Maturity Date Amount Issue name 6/19/2008 6/1/2031 $26,445,000 Telecommunications Revenue Bonds, Series 2008 (Fibernet Monticello Project) Attached are the December 31, 2012 quarterly reports for the fiscal period covered October 1, 2012 through December 31, 2012, Unaudited Financial Statements (including balance sheet, income statement, and cash flow statement) of the FTTP Project, signed and dated and the total number customers in the aggregate by Voice Lines, Internet Services and TV Customers as required for Continuing Disclosure filing. Issuer Contact Information: Name: Wayne Oberg Springsted Incorporated 380 Jackson Street, Suite 300 Title: Finance Director Saint Paul, MN 55101-2887 Employer: City of Monticello Tel: 651-223-3000 Address: 505 Walnut Street; Suite 1 Fax: 651-223-3002 City, State, Zip: Monticello, MN 55362-8831 www.springsted.com Telephone: 763-271-3211 Email Address: Wayne.oberg@ci.monticello.mn.us Issuer Website Address: http://www.ci.monticello.mn.us/ Client #: 000575
Balance Sheet As of 12/31/12 Assets Debit Credit Cash and Investments (unrestricted) $ 8,296.02 Cash Held in Escrow (restricted) 2,931,522.48 Change Fund 200.00 Interest Receivable (10,269.55) Accounts Receivable 255,728.92 Deposits 500.00 Allowance - Uncollectable Accts (18,774.67) Due From Other Governments 0.00 Prepaid Items 98,483.53 Unamortized Bond Costs 489,645.75 Capital Assets - Buildings 1,167,788.24 Capital Assets - Infrastructure 13,775,588.69 Capital Assets - Mach. & Equip. 121,939.23 Capital Assets - Furniture & Equip. 17,698.71 Capital Assets - Motor Vehicles 78,420.76 Accumalated Depreciation (206,889.61) Construction in Progress 0.00 Total Assets $ 18,709,878.50 Current Liabilities Accounts Payable $ 116,750.44 Contracts Payable 3,406.55 Sales Tax Payable 6,240.07 USF & 911 Fees 1,020.28 Federal Excise Tax 759.78 Accrued Bond Interest Payable 1,029,780.20 Interfund Loan Payable Accrued Vacation 13,216.86 Long-Term Liabilities Revenue Bonds 26,445,000.00 Unamortized Discounts (443,522.00) Total Liabilities 27,172,652.18 Net Assets Invested in Capital Assets, Net Related Debt (7,625,763.75) Unrestricted (837,009.93) Total Net Assets (8,462,773.68) Total Liabilities and Net Assets $ 18,709,878.50
Income Statement As of 12/31/12 Revenues: PEG Access Fee $ 2,308.21 Cable Franchise Fee 8,878.09 USF Fees 35,324.33 Basic TV Services 679,018.11 HD TV Services 1,698.63 Premium TV Pkg Service 21,230.38 PayPerView TV Service 4,348.29 Residential Internet Services 483,433.94 Business Internet Services 78,933.37 Equipment (Internet) Rental 9,918.59 Residential Phone Service 170,757.82 Business Phone Service 152,475.75 Phone Service - Long Distance 51,444.09 Phone Equipment Rental 1,437.60 CABS Revenue 74,163.51 Refunds & Reimbursements 162.54 Miscellaneous Charges 6,284.50 Miscellaneous Revenue 12,105.16 Purchase Card Rebates 218.97 - Total Revenues 1,794,141.88 Expenses: Salaries & Wages 429,565.97 Benefits 210,028.03 Total Personnal Services 639,594.00 Cost of Goods Voice - Technical Services 80,850.84 Video - Technical Services 596,742.65 Video - Re-transmission Fee - Data - Technical Services 232,612.53 Video - Licenses and Permits 104.00 Service Discounts/ Special Offers 1,340.00 - Total Cost of Goods 911,650.02 Supplies 24,393.30 Small Tools - Motor Fuels 8,752.86 Fiber Optic Supplies 34,282.32 Electronics 9,683.00 Telcom/Phone Supplies 9,884.32 Video/Digital TV Supplies 11,198.11 Data/Internet Supplies - Marketing Supplies 5,973.40 Building Supplies - Misc Repair & Maintenance Supplies 1,832.29 Miscellaneous Supplies - - Total Supplies 105,999.60 Income statement continued on next page
Income statement continued Engineering Fees $ - Audit Fees 1,725.00 Legal Fees 372,356.62 Management Services 236,417.00 IT/Technical Service 90.84 Website/Email Services 694.00 Maintenance Agreements 95,661.88 Marketing Services 4,177.07 Regulatory Professional Services 7,886.83 Other Professional Services 340,350.35 Gopher State Locates 1,384.93 Telephone 12,426.15 Postage 3,394.60 Disconnect Fees 3,775.00 Travel Expenses 11,077.99 Training/Conferences 3,565.33 Advertising 7,376.06 Insurance 9,982.00 Property Taxes 178.21 Electric 21,675.12 Water/Sewer 332.87 Repair & Maintenance 34,814.49 Building/Room Rental 16,980.00 Equipment Rental 190.71 Depreciation 90,809.30 Uncollectible Accounts 74,295.10 Dues & Memberships 844.50 Licenses & Permits 3,687.37 Bank Charges 14,286.75 Miscellaneous Expenses 25,624.07 Total Other Services and Charges 1,396,060.14 Buildings - Improvements - Motor Vehicles - Other Equipment - Total Improvements - Total Operating Expenses 3,053,303.76 Operating Income (1,259,161.88) Non-Operating Revenues (Expenses) Bond Interest (1,765,841.89) Fiscal Agent Fees (1,000.00) Interest Earnings (68,989.21) Total Non-Operating Revenue (Expenses) (1,835,831.10) Income (loss) before transfers (3,094,992.98) Transfers In (Out) Transfer from Other Funds 4,450,000.00 Change in Net Assets $ 1,355,007.02 * The city defaulted on the bond interest payment due on 12/01/2012. The interest earnings accrual for 2012 has not beed adjusted for this statement.
Cash Flow Statement As of 12/31/12 Cash flows from operating activities Cash received from customers $ 1,842,469.03 Cash received for other service 43,556.14 Cash payments to suppliers and vendors (2,338,570.57) Cash payments to employees (631,573.14) Net cash (used) by operations (1,084,118.54) Cash flows from noncapital activities Interfund borrowing (3,446,738.00) Transfers in 4,450,000.00 Transfers out 0.00 Net cash provided (used) by noncapital activities 1,003,262.00 Cash flows from capital & related financing activities Acquisition & construction of capital assets 0.00 Bond Interest & fees (883,668.75) Interest on investments/negative balance (68,989.21) Net cash provided (used) by capital & related financing activities (952,657.96) Net increase (decrease) in cash (1,033,514.50) Beginning cash & cash equivalents 3,973,333.00 Ending cash & cash equivalents $ 2,939,818.50 Cash and cash equivalents comprised of Unrestricted $ 8,296.02 Restricted 2,931,522.48 Total $ 2,939,818.50 I, Wayne Oberg, Finance Director for the City of Monticello, Minnesota hereby certify as to the accuracy and completeness in material respects, in the presented format, the December 31, 2012 FiberNet Monticello Cash Flow Statement. Date
EOM Reports Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 SERVICES CATV Basic 71 79 85 83 83 86 93 103 113 86 86 75 80 111 111 114 110 121 121 120 121 127 127 120 120 Expanded 687 755 773 781 831 868 928 971 1,009 1,074 1,097 985 974 918 944 930 932 905 886 886 883 877 875 884 869 Business - 158 159 163 170 182 184 186 188 9 8 8 8 9 8 8 9 9 9 9 9 9 9 9 8 Total CATV 758 992 1,017 1,027 1,084 1,136 1,205 1,260 1,310 1,169 1,191 1,068 1,062 1,038 1,063 1,052 1,051 1,035 1,016 1,015 1,013 1,013 1,011 1,013 997 INT Residential 962 1,051 1,085 1,102 1,160 1,203 1,280 1,327 1,379 1,423 1,451 1,334 1,331 1,318 1,314 1,294 1,288 1,284 1,270 1,269 1,260 1,259 1,262 1,264 1,257 Business 49 59 65 64 68 71 74 76 80 81 84 89 92 95 95 100 106 106 109 110 110 111 112 111 112 Total INT 1,011 1,110 1,150 1,166 1,228 1,274 1,354 1,403 1,459 1,504 1,535 1,423 1,423 1,413 1,409 1,394 1,394 1,390 1,379 1,379 1,370 1,370 1,374 1,375 1,369 TEL (lines) Residential 499 548 560 566 600 615 640 676 701 715 732 723 727 724 718 715 720 715 711 707 688 670 666 664 659 Business 63 95 100 101 103 129 132 130 180 201 207 267 275 283 283 323 356 357 379 409 439 442 444 448 450 Total TEL 562 643 660 667 703 744 772 806 881 916 939 990 1,002 1,007 1,001 1,038 1,076 1,072 1,090 1,116 1,127 1,112 1,110 1,112 1,109 Total Services 2,331 2,745 2,827 2,860 3,015 3,154 3,331 3,469 3,650 3,589 3,665 3,481 3,487 3,458 3,473 3,484 3,521 3,497 3,485 3,510 3,510 3,495 3,495 3,500 3,475 SUBSCRIBER (SUB) COUNTS Residential sub counts 976 1,064 1,177 1,262 1,335 1,384 1,497 1,533 1,561 1,608 1,658 1,578 1,580 1,543 1,554 1,555 1,548 1,546 1,530 1,537 1,529 1,523 1,517 1,536 1,517 Business sub counts 11 11 14 22 23 26 30 84 90 93 91 92 93 107 108 117 127 129 130 131 131 134 137 136 137 Total sub counts 987 1,075 1,191 1,284 1,358 1,410 1,527 1,617 1,651 1,701 1,749 1,670 1,673 1,650 1,662 1,672 1,675 1,675 1,660 1,668 1,660 1,657 1,654 1,672 1,654 Sub count (1 svc) 247 265 287 308 329 348 389 406 441 430 479 482 484 479 512 521 531 549 553 578 580 577 571 572 572 Sub count (2 svc) 436 481 505 508 539 569 588 635 670 696 699 658 658 654 672 661 670 667 656 656 655 652 655 657 655 Sub count (3 svc) 404 506 510 512 536 556 589 598 623 589 596 561 561 557 539 547 550 538 540 540 540 538 538 538 531 Average Revenue Generating Unit (ARGU) 2.3617 2.55349 2.37364 2.22741 2.22018 2.23688 2.18206 2.14595 2.21078 2.10994 2.09548 2.08443 2.08189 2.09576 2.08965 2.08373 2.10209 2.08776 2.0994 2.10432 2.11446 2.10923 2.11306 2.0933 2.10097 NEW INSTALLS AND DISCONNECTS New installs - Subs 93 118 58 75 84 95 131 107 56 88 64 64 52 34 52 51 34 55 30 36 43 34 37 38 26 New installs - Services 203 285 127 144 167 185 242 181 230 227 77 244 111 92 106 76 114 100 81 60 99 68 79 51 51 Disconnects - Subs 9 9 6 44 18 19 14 17 22 38 16 143 49 57 40 41 31 55 45 28 51 37 40 20 34 Disconnects - Services 22 20 17 110 38 46 64 43 49 288 153 428 109 121 91 65 77 124 93 58 99 83 79 46 76