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HomeMy WebLinkAboutWK - September 27, 20161685 CROSSTOWN C I T Y O F NDOVE BOULLVARD N.W. • ANDOVER, MINNESOTA 55304 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, September 27, 2016 Conference Rooms A & B Call to Order — 5:00 p.m. 2. Community Project Bus Tour (No Staff Report) -Administration 2017-2021 CIP Development Discussion -Administration (763) 755-5100 4. 2017 Special Revenue, Debt Service, Capital Projects, Enterprise & Internal Service Funds Budget Distribution & Discussion -Administration 5. 2017 Budget Development Discussion Administration 6. August 2016 Budget Progress Report -Administration 7. August 2016 City Investments Review -Administration 8. Other Business Adjournment 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.CI.ANDOVER.MN.US TO: FROM: SUBJECT: DATE: Mayor and Councilmembers Jim Dickinson, City Administrator 2017-2021 Capital Improvement Plan (CIP) Development Discussion September 27, 2016 INTRODUCTION Administration/Finance has been working with Department Heads to prepare a "draft" 2017- 2021 CIP. Various committees (Vehicle Purchasing & Facility Management Committees) and commissions (Parks and Recreation & Community Center Advisory) have contributed to the current "draft" 2017-2021 CIP. DISCUSSION To assist with the 2017-2021 CIP development discussion, I have attached for the Council's review the current "draft" 2017-2021 CIP summary listings. Each of the individual CIP items do identify a funding source and are supported by a detailed fund balance analysis of funding sources (based on various assumptions and estimates) or research on financing. At this time the Staff would like the Council to review the two outstandine proiect reviews related to the City Campus Master Plan and to provide direction to staff. The current schedule indicates the 2017-2021 CIP is to be adopted by the Council on October 18th. ACTION REQUESTED The Council is requested to review the staff report, receive a presentation, provide comments, and provide direction to staff relative to the proposed 2017-2021 CIP. City of Andover, MN Capital Plan 2017 thru 2021 PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project# Priority 2017 2018 2019 2020 2021 Total Building Replacement- Small Extended Cab Pick Up #8 19-02300-01 1 35,000 35,000 Equipment Bond 35,000 35,000 Building Total Central Equipment Replacement- Service Truck #371 1848800-01 2 Equipment Bond 40,000 40,000 35,000 35,000 40,000 40,000 Central Equipment Total 40,000 40,000 Community Center Exterior Painting 1744000-01 1 6,000 6,000 Comm Ctr Operations 6,000 6,000 ACC/YMCA Expansion 17-04000-02 2 75,000 200,000 6,725,000 7,000,000 Capital Equipment Reserve 75,000 75,000 G.O. Bond 200,000 6,725,000 6,925,000 Replacement - Carpeting 18-04000-01 1 18,000 12,000 30,000 Comm Ctr Operations 18,000 12,000 30,000 Replacement - Skate Sharpener 18-04200-01 1 10,000 10,000 Comm Ctr Operations 10,000 10,000 Replacement- Pickleball lnsertslNet System 18-44400-01 1 10,000 10,000 Comm Ctr Operations 10,000 10,000 New- Inflatables 1844400-03 1 10,000 10,000 Comm Ctr Operations 10,000 10,000 Replacement- All Community Center Doors 1944000-02 1 75,000 75,000 G.O. Bond 75,000 75,000 Refacing Rink Boards 19-44300-01 1 25,000 25,000 Comm Ctr Operations 25,000 25,000 Repaint Ice Arena ceiling 1944300-02 1 25,000 25,000 Comm Ctr Operations 25,000 25,000 Replacement- Ice Arena Refrigeration Replacement 19-04300-03 1 1,000,000 11000,000 G.O. Bond 1,000,000 1,000,000 Replacement - Heat Exchangers-Munters Unit 19-4300-04 1 15,000 15,000 Comm Ctr Operations 15,000 15,000 Replacement- Zamboni Battery Pack 1944300-06 1 14,000 14,000 Comm Ctr Operations 14,000 14,000 Replacement - Scissor Lift 2044000-01 1 15,000 15,000 Equipment Bond 15,000 15,000 Replacement - Lobby Fum6ure 20-44000-02 1 15,000 15,000 Comm Cir Operations 15,000 15,000 Replacement - Roof 2044000-03 1 500,000 500,000 G.O. Bond 500,000 500,000 Department Project# Priority 2017 2018 2019 2020 2021 Total Replacement- Kaivac Cleaning System 20-04000-05 1 10,000 Sewer Trunk Fund 10,000 Comm Cir Operations 18,000 Pedestrian Trail Maintenance 10,000 Road 8 Bridge Funds 10,000 Replacement- Camera/Secumty System 2044000-06 1 12,000 Trail Funds 12,000 G.O. Bond 1741600-04 Road 8 Bridge Funds 12,000 Pedestrian Curb Ramp Replacements 12,000 Replacement- Zamboni Room Water Heater 20-04300-02 1 25,000 Road 8 Bridge Funds 25,000 G.O. Bond 1841600-01 Equipment Bond 25,000 180,000 25,000 Replacement - Floor Scrubber 21-04000-01 1 125,000 15,000 15,000 Comm Ctr Operations 43,000 45,000 50,000 15,000 15,000 Repaint Field House Ceiling 21-04200-01 1 65,000 25,000 25,000 Comm Ctr Operations 55,000 60,000 65,000 25,000 25,000 Replacement - Munters Desiccant Wheel 21-04300-01 1 710,000 10,000 10,000 Comm Ctr Operations 265,000 10,000 10,000 Replacement -Electric Edger 21-04300-02 1 710,000 8,000 8,000 Comm Cir Operations 80,000 100,000 120,000 8,000 8,000 Replacement- Evaporative Condenser 21-04300-03 1 120,000 60,000 60,000 Comm Crr Operations 16,000 17,000 18,000 60,000 60,000 Replacement- Field House Floor 2144400-02 1 18,000 150,000 150,000 Comm Ctr Operations 150,000 150,000 Community Center Total 81,000 248,000 7,879,000 589,000 268,000 9,065,000 Emergency Management Emergency Operations Center Improvement 17-02400-01 Cap Bal Equipment Reserve Replacement- Emergency Sirens 1742400-02 Capital Equipment Reserve Emergency Management Total Engineering 18,000 New Development Projects 17-01600-01 Sewer Trunk Fund 65,500 Water Trunk Fund 18,000 Pedestrian Trail Maintenance 1741600-02 Road 8 Bridge Funds 65,500 New Pedestrian Trail and Sidewalk Segments 1741600-03 Grant 45,000 Trail Funds 180,000 Pedestrian Trail Reconstruction 1741600-04 Road 8 Bridge Funds 45,000 Pedestrian Curb Ramp Replacements 1741600-05 Road 8 Bridge Funds 63,000 LED Crosswalk Warning System 1741600-06 Road 8 Bridge Funds 245,500 Replacement- Data Collector/Total Station 1841600-01 Equipment Bond 175,000 Engineering Total Facility Management Annual Parking Lot Maintenance 1741900-01 Capital Equipment Reserve Comm Ctr Operations Replacement - Carpet / Tile 1741900-02 Capital Equipment Reserve 1 40,000 18,000 7,500 65,500 40,000 18,000 7,500 65,500 1 45,000 45,000 45,000 45,000 180,000 45,000 45,000 45,000 45,000 180,000 85,000 63,000 52,500 45,000 245,500 1 160,000 160,000 165,000 175,000 180,000 840,000 117,000 117,000 120,000 125,000 125,000 604000 43,000 43,000 45,000 50,000 55,000 236,000 1 50,000 55,000 60,000 65,000 70,000 300,000 $0,000 55,000 60,000 65,000 70,000 300,000 1 565,000 225,000 265,000 710,000 400,000 2,165,000 265,000 265,000 565,000 225,000 710,000 400,000 1,900,000 1 60,000 80,000 100,000 120,000 140,000 500,000 60,000 80,000 100,000 120,000 140,000 500,000 1 15,000 16,000 17,000 18,000 19,000 85,000 15,000 16,000 17,000 18,000 19,000 65,000 1 21,000 21,000 21,000 21,000 1 33,500 33,500 33,500 33,500 871,000 569,500 607,000 1,088,000 809,000 3,944,500 1 90,000 130,000 30,000 30,000 30,000 310,000 30,000 130,000 30,000 30,000 30,000 250,000 60,000 60,000 2 10,000 10,000 10,000 30,000 10,000 10,000 10,000 30,000 Department Project# Priority 2017 2018 2019 2020 2021 Total Replacement -Security Management System 1741900-03 1 100,000 580,000 9,025,000 100,000 Capital Equipment Reserve 10,070,000 Finance 100,000 100,000 Public Works Relocation I Expansion 1741900-04 1 50,000 450,000 8,500,000 1941400-01 9,000,000 Capital Equipment Reserve 150,000 50,000 150,000 50,000 G.O. Bond 450,000 8,500,000 8,950,000 HDUpgrade - City Hall CouncilChambers 1741900-05 1 60,000 60,000 Capital Equipment Reserve 150,000 60,000 60,000 Building A - Seal Floor 1941900-01 1 25,000 Replacement -Turnout Gear 25,000 Capital Equipment Reserve 20,000 20,000 20,000 25,000 20,000 25,000 Pedestrian Tunnel Under Crosstown Blvd. 19-41900-05 1 20,000 450,000 20,000 450,000 G.O. Bond 100,000 Replacement- Extdcation(Rescue) Equipment 1742200-02 450,000 80,000 450,000 Memorial - Veterans Memorial 1941900-06 1 80,000 10,000 10,000 Capital Equipment Reserve 10,000 80,000 10,000 Surface Seal all Brick Structures 2041900-01 1 85,000 85,000 85,000 Capital Equipment Reserve Equipment Bond 48,000 48,000 Comm CO, Operations 85,000 Replacement - Grass #21 1842200-02 12,000 12,000 Water Fund 85,000 25,000 25,000 Facility Management Total 310,000 580,000 9,025,000 115,000 40,000 10,070,000 Finance Financial l Payroll System Upgrade IReplacement 1941400-01 1 150,000 150,000 Capital Equipment Reserve 150,000 150,000 Finance Total 150,000 150,000 Fire Replacement -Turnout Gear 1742200-01 1 20,000 20,000 20,000 20,000 20,000 100,000 General Fund 20,000 20,000 20,000 20,000 20,000 100,000 Replacement- Extdcation(Rescue) Equipment 1742200-02 1 80,000 80,000 Capital Equipment Reserve 80,000 80,000 Replacement- Grass #31 1842200-01 1 85,000 85,000 Equipment Bond 85,000 85,000 Replacement - Grass #21 1842200-02 1 85,000 85,000 Equipment Bond 85,000 85,000 Replacement - Tanker #11 1942200-01 1 400,000 400,000 Equipment Bond 400,000 400,000 Replacement- Grass Utility Vehicle (UTV) #4813 1942200-03 1 45,000 45,000 Equipment Bond 45,000 45,000 Replacement -1999 GMC Sonoma Truck (U-10) #4810 1942200-05 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement- SCBA Compressors 2042200-01 1 130,000 130,000 Equipment Bond 130,000 130,000 Replacement -800 MHz radios 2042200-02 1 35,000 35,000 70,000 Capital Equipment Reserve 35,000 35,000 70,000 Replacement -Engine 21#4884 2042200-03 1 450,000 450,000 Equipment Bond 450,000 450,000 Fire Total 100,000 190,000 510,000 635,000 55,000 1,490,000 Information Technology Smarlboard Addition 1841420-01 1 12,000 12,000 Capital Equipment Reserve 12,000 12,000 Department Project# Priority 2017 2018 2019 2020 2021 Total Information Technology Total 12,000 12,000 Park & Rec - Operations Replace/Repair Play Structures- Various Parks 17-05000-01 1 50,000 50,000 50,000 50,000 50,000 250,000 General Fund 50,000 50,000 50,000 50,000 50,000 250,000 Replace/Repair Major Park Projects-Various Parks 17-45000-02 1 25,000 25,000 25,000 25,000 25,000 125,000 General Fund 25,000 25,000 25,000 25,000 25,000 125,000 Replacement - One Ton Crew Cab Pickup #502 17-05000-03 1 50,000 50,000 Capital Equipment Reserve 50,000 50,000 New - Trail Machine 17-45000-04 1 150,000 150,000 Capital Equipment Reserve 150,000 150,000 Replacement - One Ton Truck w/ Plow #599 1845000-01 1 80,000 80,000 Equipment Bond 80,000 80,000 New- Wood Chipper Tow-Behind 18-45000-02 1 20,000 20,000 Equipment Bond 20,000 20,000 Replacement - Bobcat Track Loader #610 1845000-03 1 55,000 55,000 Equipment Bond 55,000 55,000 Replacement - Small Extended Cab Truck #76 18-45000-04 1 55,000 55,000 Equipment Bond 55,000 55,000 New - "V" Snow Plow for #09-589 18-45000-05 1 15,000 15,000 Equipment Bond 15,000 15,000 Replacement -Water Tanker#161 1945000-01 1 150,000 150,000 Equipment Bond 150,000 150,000 Replacement-Trailer #T555 19-45000-02 1 16,000 16,000 Equipment Bond 1Q000 16,000 Replacement- Cushman Field Dresser #547 20-45000-01 1 27,000 27,000 Equipment Bond 27,000 27,000 Park & Rec - Operations Total 275,000 300,000 241,000 102,000 75,000 993,000 Park & Rec - Projects Annual Miscellaneous Park Projects 17-05001-01 1 15,000 15,000 15,000 15,000 15,000 75,000 Park Dedication Funds 15,000 15,000 15,000 15,000 15,000 75,000 Fox Meadows Park - Renovadon 17-45001-02 1 457,300 457,300 Park Dedication Funds 457,300 457,300 Pine Hills North - Phase II 17-45001-03 1 100,000 400,000 500,000 Capital Equipment Reserve 280,000 280,000 Donations 100,000 100,000 Park Dedication Funds 120,000 120,000 Irrigation Projects -Small Parks 17-45001-04 1 20,000 20,000 20,000 60,000 Park Dedication Funds 20,000 20,000 20,000 60,000 Nordeen's Park Basketball Court 17-45001-05 1 7,500 7,500 Park Dedication Funds 7,500 7,500 Wild Iris Park Irrigation and Water Service 19-45001-02 1 42,500 42,500 Park Dedication Funds 42,500 42,500 Park & Rec - Projects Total 599,800 35,000 35,000 457,500 15,000 1,142,300 Planning & Zoning Replacement - Planning Vehicle #7 17-01500-01 1 30,000 30,000 Capital Equipment Reserve 30,000 30,000 Planning & Zoning Total 30,000 30,000 Department Project# Priority 2017 2018 2019 2020 2021 Total Sanitary Sewer Road & Bridge Funds 65,000 Annual Street Crack Seal Project 1743100-02 Construction Seal Coat Fund Sanitary Sewer Extensions 17.48200-01 1 105,000 500,000 605,000 Assessments Annual Curb Replacement 1743100-04 105,000 10,000 105,000 Sewer Trunk Fund Assessments 235,000 Municipal State Aid Funds 500,000 500,000 Replacement - JetlVac Truck #99 1748200-02 1 460,000 200,000 460,000 Sanitary Sewer Fund Grant 65,000 230,000 2 10,000 230,000 Sewer Trunk Fund Road & Bridge Funds 10,000 230,000 1743100-11 230,000 Lift Station #4 Upgrade 17.48200-03 1 50,000 58,000 50,000 Sewer Trunk Fund 820,000 1,690,000 50,000 290,000 50,000 Yellow Pine Lift Station 1848200-01 1 15,000 650,000 650,000 Sewer Truck Fund 744,500 1,546,000 335,000 650,000 650,000 Replacement - One Tan Utility Truck #69 1848200-02 1 1,092,000 100,000 100,000 Sanitary Sewer Fund 205,000 186,000 273,000 100,000 100.000 Sanitary Sewer Total Storm Sewer Storm Sewer Improvements 17-08300-01 Storm Sewer Fund Replacement - Tymco Street Sweeper #172 1848300-01 Equipment Bond Replacement- Elgin Street Sweeper#169 1948300-01 Equipment Bond Storm Sewer Total Street Signs Sign Design Software and Plotter 1743300-01 Capital Equipment Reserve Street Signs Total 1,250,000 260,000 275,000 Streets / Highways Annual Street Seal Coat Project 1743100-01 Road & Bridge Funds 65,000 Annual Street Crack Seal Project 1743100-02 Construction Seal Coat Fund 60,000 62,000 Road & Bridge Funds 301,000 Annual Pavement Markings 1743100-03 Road & Bridge Funds 17,000 Annual Curb Replacement 1743100-04 Road & Bridge Funds 10,000 Municipal State Aid Routes / New &Reconstruct 1743100-05 Assessments 235,000 Municipal State Aid Funds 365,000 Annual Street Reconstruction 1743100-06 Assessments 100,000 Road & Bridge Funds 200,000 Intersecton Upgrades 1743100-07 Grant 65,000 Municipal Sta to Aid Funds 2 10,000 Gravel Road Improvements 1743100-08 Road & Bridge Funds 10,000 Replacement- One Ton Truck w1 Plow #134 1743100-11 Capital Equipment Reserve 50,000 615,000 1,250,000 260,000 275,000 1,865,000 1 55,000 60,000 60,000 62,000 65,000 302,000 55,000 60,000 60,000 62,000 65,000 301,000 1 220,000 1,240,000 17,000 220,000 10,000 220,000 10,000 55,000 220,000 1 235,000 200,000 365,000 200,000 1 42,000 44,000 100,000 48,000 200,000 55,000 280,000 260,000 62,000 65,000 722,000 2 10,000 230,000 1 50,000 52,000 10,000 10,000 58,000 270,000 50,000 10,000 10,000 56,000 58,000 270,000 10,000 1 725,000 250,000 260,000 275,000 285,000 1,795,000 725,000 250,000 260,000 275,000 285,000 1,795,000 1 160,000 170,000 245,000 290,000 375,000 1,240,000 17,000 8,000 10,000 10,000 10,000 55,000 143,000 162,000 235,000 280,000 365,000 1,185,000 1 42,000 44,000 46,000 48,000 50,000 230,000 42,000 44,000 46,000 48,000 50,000 230,000 1 50,000 52,000 54,000 56,000 58,000 270,000 50,000 51,000 54,000 56,000 58,000 270,000 1 1,300,000 820,000 1,690,000 350,000 290,000 4,450,000 243,000 75,500 144,000 15,000 15,000 49400 1,057,000 744,500 1,546,000 335,000 175,000 3,957,500 1 1,236,000 821,000 1,143,000 1,092,000 1,268,000 5,560,000 309,000 205,000 186,000 273,000 317,000 1,390,000 927,000 616,000 857,000 819,000 951,000 4170,000 1 285,000 2,075,000 2,360,000 1,600,000 1,600,000 285,000 475,000 760,000 1 15,000 15,000 15,000 15,000 15,000 75,000 15,000 - 15,000 15,000 15,000 15,000 75,000 1 80,000 80,000 80,000 80,000 Department Project# Priority 2017 2018 2019 2020 2021 Total New -One Ton Truck w/ Regular Box w/Lift&Plow 17-03100-12 1 55,000 50,000 55,000 Capita/ Equipment Reserve 50,000 250,000 55,000 55,000 New - Bobcat paver 17-03100-13 1 20,000 50,000 20,000 Capital Equipment Reserve 17-48100-02 1 20,000 20,000 Street Overlays 18-03100-01 1 Sanitary Sewer Fund 400,000 400,000 800,000 Assessments - 100,000 100,000 200,000 Road B Bridge Funds 15,000 300,000 300,000 600,000 New - Dump Truck w/ snow removal 19-03100-01 1 Replacement - 3/4 Ton Utility Truck #66 220,000 220,000 Equipment Bond 60,000 220,000 220,000 Replacement - Dump Truck w/ Snow removal#198 20-43100-01 1 220,000 220,000 Equipment Bond 60,000 Replacement - Side by Side UTV #70 220,000 220,000 Replacement -Bobcat S185#120 20-43100-02 1 50,000 50,000 Equipment Bond 50,000 50,000 Replacement - One Ton Truck w/Plow #133 2043100-03 1 Storm Sewer Fund 80,000 80,000 Equipment Bond 16,000 80,000 80,000 Replacement -Backhoe Loader#80 2043100-04 2 110,000 110,000 Equipmenteond 16,000 Water Main Improvements 110,000 110,000 Replacement - Dump Truck w/ Snow removal#200 2143100-01 1 220,000 220,000 Equipment Bond 220,000 220,000 Streets / Highways Total 3,683,000 2,857,000 3,673,000 2,986,000 4,636,000 17,835,000 Water Rehabilitation of Wells 17-48100-01 1 50,000 50,000 50,000 50,000 50,000 250,000 Water Fund 50,000 50,000 50,000 50,000 50,000 150,000 Replacement- Dodge Dakota #95 17-48100-02 1 30,000 30,000 Sanitary Sewer Fund 15,000 - 15,000 Water Fund 15,000 15,000 Replacement - 3/4 Ton Utility Truck #66 1848100-02 1 60,000 60,000 Water Fund 60,000 60,000 Replacement - Side by Side UTV #70 18-48100-03 1 48,000 48,000 Sanitary Sewer Fund 16,000 16,000 Storm Sewer Fund 16,000 16,000 Water Fund 16,000 16,000 Water Main Improvements 18-08100-04 1 640,000 710,000 1,350,000 Assessments 500,000 710,000 1,210,000 Water Trunk Fund 140,000 140,000 Water Meter Reading System AMI/AMR 19-48100-01 2 900,000 900,000 Water Fund 900,000 900,000 Water Total 80,000 798,000 1,660,000 50,000 50,000 2,638,000 GRAND TOTAL 6,794,800 7,222,500 24,127,500 6,129,500 6,013,000 50,287,300 Capital Plan City of Andover, MN Project# 17-41900-04 Project Name Public Works Relocation /Expansion Description 2017 thru 2021 Department Facility Management Contact DPW / City Engineer Type Improvement Useful Life 30 Years + Category Facility Management Priority 1 -High a new Public Works facility as identified in the approved City Campus Expansion Master Plan. I - Construct a new Vehicle Maintenance Shop, including a wash bay, cold storage building and fuel island/canopy. II - Construct a new Public Works Building, including office space and heated storage garage. Justification Due to the increase of vehicles, equipment and supplies now used by the City of Andover, this vehicle storage building and vehicle maintenance repair shop is badly needed. It is not cost effective to have vehicles or other equipment stored outside. Minnesota's four seasons are way too hard on them and it makes for a much cleaner operation. The vehicle maintenance repair shop has been needed for a long time. The area now used has doors that are not wide enough and the work areas for the hydraulic hoist are way too small. Also with the amount of equipment now maintained by our staff, the area is much too small to run a completely safe operation. Expenditures 2017 2018 2019 2020 2021 Total Planning/Design 50,000 450,000 500,000 Improvement 8,500,000 8,500,000 Total 50,000 450,000 8,500,000 9,000,000 Funding Sources 2017 2018 2019 2020 2021 Total Capital Equipment Reserve 50,000 50,000 G.O. Bond 450,000 8,500,000 8,950,000 Total 50,000 450,000 8,500,000 9,000,000 Budget Impact/Other ,ill impact the life of the vehicles and other equipment by being stored inside and to house our vehicle maintenance mechanics. Over the the cost savings have been shown when the proper maintenance of our equipment can be implemented. This building will provide a safe, ;tive, and healthy operational area for City employees that will benefit the City of Andover for many years. Capital Plan 2017 rhru 2021 Department Community Center City of Andover, MN Contact Comm Co Manager Project# 17-44000-02 Project Name ACC/YMCA Expansion Type Improvement Useful Life 30 Years+ Category Equipment Priority 2 -Medium nsion of the Community Center which may include a youth center, additional meeting rooms, office space, library services space, practice ice storage, hockey training and multi-purpose space. The YMCA may look into additional studio space as well as "flex space" and offices. After 12 years in operation, the city is exploring an expansion to issues that staff currently face. Budget to accommodate additional users and address some of the Expenditures 2017 2018 2019 2020 2021 Total Planning/Design 75,000 200,000 275,000 Construction 6,725,000 6,725,000 Total 75,000 200,000 6,725,000 7,000,000 Funding Sources 2017 2018 2019 2020 2021 Total Capital Equipment Reserve G.O. Bond 200,000 6,725,000 6,925,000 Total 75,000 200,000 6,725,000 7,000,000 75,000 75,000 $7,000,000 in debt service; additional lease revenue Y 0 F O jV E 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE Mayor and Councilmembers Jim Dickinson, City Administrator 0 2017 Special Revenue, Debt Service, Capital Projects, Enterprise & Internal Service Funds Budget Distribution & Discussion September 27, 2016 The Council has had a number of reviews of the 2017 Proposed General Fund Budget that will be supported by the 2017 Tax Levy. The Council did adopt at the September 6th regular Council meeting a Preliminary 2017 General Fund Levy & Budget. The Preliminary 2017 Levy & Budget proposes a total property tax levy of $11,938,555: $8,344,354 (69.89%) operational levy, $1,610,047 (13.49%) debt service levy, and $1,984,154 (16.62%) capital/watershed levy. The 2017 Proposed Property Tax Levy is estimated to reduce the current City tax rate by close to 2% but will generate additional tax revenue through growth identified in the City's tax base, a 2.97% increase in the gross tax levy. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2016. This agenda item will focus on all the other City fund budgets. DISCUSSION Other Funds: The attachments to this staff report are draft budgets for all the other funds outside of the General Fund within the City. The attachments are grouped by fund types' bolded below: For the most part these budgets are self explanatory, with the exception of the Communitv Center Economic Development Authority (EDA) and Enterprise Funds The Community Center Nmd will be presented at a future workshop by the Recreational Facilities Manager, the EDA Fund detail will be presented to the EDA at a future meeting and the Enternrise Funds are driven by a rate analysis that is part of the Capital Improvement Plan (CIP) Development process I will provide a brief presentation of the attached hudpets and answer any questions the Council may have. The Special Revenue Funds (pgs 1 — 20) are established to justify and account for revenue sources to finance particular functions or projects. Revenues for these funds come from a variety of sources (taxes, fees, gifts, grants or other contributions). Expenditures from these funds are normally restricted by statute, local ordinance or grant agreement. Also the funds may be used for either operations or capital outlay as legal restrictions mandate. Administration will be discussing with the Council the following funds: 1. Economic Development Authority Fund 2. Community Center 3. Charitable Gambling Fund The Debt Service Funds (pgs 21 — 36) account for the accumulation of resources for, and the payment of general long-term principal and interest. Repayment of the debt through principal and interest payments to bond holders is backed by the full faith and credit of the City of Andover. Administration will briefly discussing with the Council how the overall debt service spreadsheet impacts the individual Debt Service Funds and the proposed 2017 Debt Service Levy. The Capital Project Funds (pgs 37 — 64) are used to account for the acquisition or construction of major capital facilities or equipment financed by a variety of funding sources, including tax levy, debt, special assessments, grants or other governmental fund resources. Administration be discussing the Trail & Transportation fund with the Council, all other funds will not be discussed in detail. These funds are the primary funds that facilitate the annual Capital Improvement Plan (CIP). The Enterprise Funds (pgs 65 — 72) are dependent on multiple factors such as community growth and demand for and usage of the service. The Enterprise funds are generally in line and step with the rate analysis done for these funds as part of the CIP development and review. Administration will discuss how these funds are impacted by rate analysis that facilitates the Enterprise Funds' annual Capital Improvement Plan (CIP). Internal Service Funds (pgs 73 — 78) are used to account for services that are provided to other City Departments, or to other governments, on a cost reimbursement basis. Administration will briefly discuss with the Council the following funds: 1. Central Equipment Fund 2. Risk Management Fund ACTION REQUESTED The Council is requested to review the staff report, attachments, receive a presentation, and provide direction to staff. submitted, CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET Special revenue funds are established to justify revenue sources to finance particular functions or projects. Revenue for these funds can come from a variety of sources, such as taxes, fees, gifts and grants or contributions from other governmental entities. Expenditures from these funds are normally restricted by statute, local ordinance, or grant agreements. The funds may be used for either operations or capital outlay as legal restrictions mandate. City of Andover Special Revenue Funds 2017 Budget Summary - All Special Revenue Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 607,404 $ 669,442 $ 669,442 39,927 695,681 7,533 854,396 1,597,537 1,597,537 2,204,941 527,207 82,383 210,983 414,926 1,235,499 300,000 1,535,499 40,000 37,500 671,700 7,500 805,500 1,562,200 1,562,200 2,231,642 483,086 85,570 256,035 481,597 40,000 669,400 5,300 795,000 1,509,700 1,509,700 2,179,142 497,086 79,920 236,035 405,522 56,000 56,000 1,362,288 1,274,563 378,398 1,740,686 306,800 1,581,363 $ 597,779 40,000 37,500 687,200 5,800 796,500 1,567,000 1,567,000 2,164,779 518,671 89,020 240,180 469,929 66,000 1,383,800 305,000 1,688,800 Fund Balance, December 31 $ 669,442 Actual Rdoptedz `r �ti +Eshmate fidoptei Change in Fund Balance $ 62,038 ,< $ (71,663) %Desch 10% -27% 20116a� -20% _t.. Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 607,404 $ 669,442 $ 669,442 39,927 695,681 7,533 854,396 1,597,537 1,597,537 2,204,941 527,207 82,383 210,983 414,926 1,235,499 300,000 1,535,499 40,000 37,500 671,700 7,500 805,500 1,562,200 1,562,200 2,231,642 483,086 85,570 256,035 481,597 40,000 669,400 5,300 795,000 1,509,700 1,509,700 2,179,142 497,086 79,920 236,035 405,522 56,000 56,000 1,362,288 1,274,563 378,398 1,740,686 306,800 1,581,363 $ 597,779 40,000 37,500 687,200 5,800 796,500 1,567,000 1,567,000 2,164,779 518,671 89,020 240,180 469,929 66,000 1,383,800 305,000 1,688,800 Fund Balance, December 31 $ 669,442 $ 490,956 $ 597,779 $ 475,979 Change in Fund Balance $ 62,038 $ (178,486) $ (71,663) $ (121,800) 10% -27% -11% -20% 2 City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 380,792 $ 334,451 20,895 3,831 930 25,656 25,656 406,448 49,457 5,064 8,230 9,246 71,997 71,997 $ 334,451 $ (46,341) -12% 20,000 5,000 25,000 25,000 359,451 22,610 18,900 78,800 14,850 135,160 135,160 $ 224,291 $ (110,160) -33% 334,451 $ 238,791 10,000 2,500 12,500 12,500 346,951 22,610 13,900 58,800 12,850 108,160 108,160 $ 238,791 $ (95,660) -29% 10,000 3,000 13,000 13,000 251,791 14,632 18,900 79,000 13,850 126,382 126,382 $ 125,409 $ (113,382) -47% 3 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 380,792 $ 334,451 20,895 3,831 930 25,656 25,656 406,448 49,457 5,064 8,230 9,246 71,997 71,997 $ 334,451 $ (46,341) -12% 20,000 5,000 25,000 25,000 359,451 22,610 18,900 78,800 14,850 135,160 135,160 $ 224,291 $ (110,160) -33% 334,451 $ 238,791 10,000 2,500 12,500 12,500 346,951 22,610 13,900 58,800 12,850 108,160 108,160 $ 238,791 $ (95,660) -29% 10,000 3,000 13,000 13,000 251,791 14,632 18,900 79,000 13,850 126,382 126,382 $ 125,409 $ (113,382) -47% 3 4 Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Highlights 2016 & 2017 includes funding for monument entrance signs. EDA Budget provides for ongoing maintenance around the Andover Station Development area. Department Head: City Administrator General Activity Description To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. Process Used Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. The EDA is the primary authority involved in managing the City's four Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual 1 Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 $ Revenues Intergovernmental Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ Change in Fund Balance $ n/a 25,000 25,000 25,000 25,000 25,000 n/a n/a 25,000 25,000 25,000 25,000 25,000 n/a 5 M Fund: Community Development Block Grant Activity Type/Code: Special Revenue Expenditure Highlights This was a new fund created in 2004 to track the Community Development Block Grant (CDBG) Rental Rehab program. In 2017, additional grant monies will be applied for to study areas that have access to city water but are not currently hooked up. Department Head: Community Development Dir. General Activity Description The Rental Rehab program provides low-interest loans for the rehabilitation of rental housing units. This fund accounts for the loans disbursed, as well as the payments received. In 2008, a housing rehab program was started. Due to the lack of interest, the rental rehab program was terminated in 2012. Process Used Rehab Grants are received from CDBG and disbursed to qualified applicants. As payments come in, these funds create a revolving loan program and new loans are given out to qualified applicants. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ (48,364) 637,921 (1,079) 813,009 1,449,851 1,449,851 1,401,487 439,304 74,949 142,602 388,492 1,045,347 300,000 1,345,347 Fund Balance, December 31 $ 56,140 Change in Fund Balance $ 104,504 -216% $ 56,140 618,700 784,000 1,402,700 1,402,700 1,458,840 441,231 56,850 96,000 429,147 56,000 1,079,228 371,598 1,450,826 $ 8,014 $ (48,126) -86% $ 56,140 626,400 765,000 1,391,400 1,391,400 1,447,540 455,231 62,000 81,500 380,247 56,000 1,034,978 300,000 1,334,978 $ 112,562 $ 56,422 101% $ 112,562 632,200 775,000 1,407.200 1,407,200 1,519,762 484,119 59,300 89,000 406,479 66,000 1,104,898 300,000 1,404,898 $ 114,864 $ 2,302 2% 7 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ (48,364) 637,921 (1,079) 813,009 1,449,851 1,449,851 1,401,487 439,304 74,949 142,602 388,492 1,045,347 300,000 1,345,347 Fund Balance, December 31 $ 56,140 Change in Fund Balance $ 104,504 -216% $ 56,140 618,700 784,000 1,402,700 1,402,700 1,458,840 441,231 56,850 96,000 429,147 56,000 1,079,228 371,598 1,450,826 $ 8,014 $ (48,126) -86% $ 56,140 626,400 765,000 1,391,400 1,391,400 1,447,540 455,231 62,000 81,500 380,247 56,000 1,034,978 300,000 1,334,978 $ 112,562 $ 56,422 101% $ 112,562 632,200 775,000 1,407.200 1,407,200 1,519,762 484,119 59,300 89,000 406,479 66,000 1,104,898 300,000 1,404,898 $ 114,864 $ 2,302 2% 7 Fund: Community Center Activity Type/Code: Special Revenue Expenditure Highlights 0 2009 was the first year the YMCA made a full lease payment of $635,000. The transfer out is the difference between the tax levied for the Community Center debt service and the total annual debt service for the Community Center The capital outlay expenditure for 2016 is for replacement of the rink rubber flooring ($36,000) in the hallways and locker rooms; and to crack seal the parking lot ($20,000). In 2017, $60,000 is to seal coat the parking lot and $6,000 is for painting the entrances. Department Head: Recreation Facility Manager General Activity Description This fund accounts for the operations of the Andover/YMCA Community Center, particularly the ice arena, Feld house and concessions. The aquatic's portion of the Community Center is under the operations of the YMCA. Process Used The Community Center construction started in 2004 and was completed in the summer of 2005. The facility will be managed by the Recreational Facility Manager with oversight by a Community Center Advisory Board and the City Council. The YMCA is a long-term tenant and started making lease payments in 2008. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Drainage and Mapping Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 154,838 $ 144,771 $ 144,771 317 1,768 2,085 2,085 156,923 1,870 4,636 5,646 12,152 8,000 1,200 9,200 9,200 153.971 2,300 9,500 7,000 18,800 8,000 1,200 9,200 9,200 153,971 3,000 8,000 6,930 17,930 $ 136,041 8,000 1,200 9,200 9,200 145,241 3,300 9,500 7,000 19,800 12.152 18,800 17,930 19,800 $ 144,771 $ 135,171 Change in Fund Balance $ (10,067) $ (9,600) -7% -7% $ 136,041 $ (8,730) -6% $ 125,441 $ (10,600) -8% Actual 1 Adopted 1 Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 154,838 $ 144,771 $ 144,771 317 1,768 2,085 2,085 156,923 1,870 4,636 5,646 12,152 8,000 1,200 9,200 9,200 153.971 2,300 9,500 7,000 18,800 8,000 1,200 9,200 9,200 153,971 3,000 8,000 6,930 17,930 $ 136,041 8,000 1,200 9,200 9,200 145,241 3,300 9,500 7,000 19,800 12.152 18,800 17,930 19,800 $ 144,771 $ 135,171 Change in Fund Balance $ (10,067) $ (9,600) -7% -7% $ 136,041 $ (8,730) -6% $ 125,441 $ (10,600) -8% Fund: Drainage and Mapping Activity Type/Code: Special Revenue Expenditure Highlights 10 Minimal changes are planned for this fund as monies are set aside for future mapping needs. Department Head: Dir of PW / City Engineer General Activity Description The drainage and mapping activity provides the resource to maintain existing and develop new maps and mapping systems for the City. The City GIS is a key component in this mapping and data inventory task. Process Used Existing mapping systems and data are maintained manually in a reproducible format. The existing information is being converted to a digital format as is all new data which is developed for the City. All data will be accessible either manually or through a computerized application. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 2,295 $ 1,385 $ 1,385 $ 9,340 39,927 (204) 39,723 39,723 42,018 40,000 100 40,100 40,100 41,485 40,000 Actual Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 2,295 $ 1,385 $ 1,385 $ 9,340 39,927 (204) 39,723 39,723 42,018 40,000 100 40,100 40,100 41,485 40,000 40,000 100 100 40,100 40,100 40,100 41,485 40,100 49,440 16,766 9,425 9,425 9,747 - 520 520 520 23,702 22,035 22,035 12,680 165 200 165 200 40,633 32,180 40,633 32,180 $ 1,385 $ (910) -40% $ 9,305 $ 7,920 572% 32,145 23,147 32,145 23,147 $ 9,340 $ 7,955 574% $ 26,293 $ 16,953 182% 11 12 Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Expenditure Highlights 2017 includes a reduction in annual funding to the LRRWMO. Department Head: Assistant City Engineer General Activity Description The function of the Lower Rum River Watershed Management Organization (LRRWMO) is to provide for: conservation of water and natural resources; prevention and alleviation of flood damage; and regulation of creeks, lakes, water courses and storm water conveyance systems for domestic, recreational and public use across municipal boundaries. To achieve this purpose, state law gives watershed management organizations several powers, among which are: 1. Responsibility for preserving natural retention areas. 2. Preparation of plans for water management. 3. Review of municipal water management plans and of projects directly affecting the water resources of the watershed. 4. Review of local land use in the absence of an approved municipal surface water management plan. S. Collection of data. 6. Conducting of studies and investigations. 7. Construction of improvements, either in response to petition or on the initiative of the LRRWMO. 8. Levying of taxes and assessments for the financing of the previously mentioned activities and for general administration of the organization. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Forestry Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Supplies and Materials Purchased Services Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 7,243 $ 6,831 $ 6,831 $ 3,431 - 12,500 - 12,500 88 100 100 100 6,500 6,500 88 19,100 100 19,100 88 Actual Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Supplies and Materials Purchased Services Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 7,243 $ 6,831 $ 6,831 $ 3,431 - 12,500 - 12,500 88 100 100 100 6,500 6,500 88 19,100 100 19,100 88 19,100 100 19,100 7,331 25,931 6,931 22,531 500 6,500 - 6,500 12,500 3,500 12,500 500 19,000 3,500 19,000 500 19,000 3,500 19,000 Fund Balance, December 31 $ Change in Fund Balance $ 6,831 $ 6,931 $ 3,431 $ 3,531 (412) $ 100 $ (3,400) $ 100 -6% 1% -50% 3% 13 Fund: Forestry Activity Type/Code: Special Revenue Expenditure Hiehliehts This fund tracks forestry -related grants with state agencies like the Minnesota Department of Natural Resources (DNR) and administers the bare root tree sale. A tree sale is proposed for 2017. Department Head: Dir of PW / City Engineer General Activity Description Forestry shall preserve Andover's forest resources and develop control plans to ensure preservation and/or restoration of these resources. Process Used The City utilizes the Natural Resources Technician to administer the annual bare root tree sale, coordinate various tree plantings with local organizations like the Eagle Scouts, and monitor preservation and disease tree management grants. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 14 City of Andover Special Revenue Funds Right of Way Managernent / Utility Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 49,998 27,135 727 27,862 27,862 77,860 21,680 7,941 330 29,951 $ 47,909 20,000 500 20,500 20,500 68,409 9,820 500 11,200 400 21,920 - 6,800 29,951 28,720 $ 47,909 $ (2,089) -4% $ 39,689 $ (8,220) -17% $ 47,909 20,000 500 20,500 20,500 68,409 9,820 500 11,200 330 21,850 6,800 28,650 $ 39,759 $ (8,150) -17% $ 39,759 20,000 500 20,500 20,500 60,259 10,173 500 11,200 400 22,273 5,000 27,273 $ 32,986 $ (6,773) -17% 15 Actual 1 Adopted Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 49,998 27,135 727 27,862 27,862 77,860 21,680 7,941 330 29,951 $ 47,909 20,000 500 20,500 20,500 68,409 9,820 500 11,200 400 21,920 - 6,800 29,951 28,720 $ 47,909 $ (2,089) -4% $ 39,689 $ (8,220) -17% $ 47,909 20,000 500 20,500 20,500 68,409 9,820 500 11,200 330 21,850 6,800 28,650 $ 39,759 $ (8,150) -17% $ 39,759 20,000 500 20,500 20,500 60,259 10,173 500 11,200 400 22,273 5,000 27,273 $ 32,986 $ (6,773) -17% 15 16 Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue Expenditure Highlights The transfer to the Road & Bridge Capital Projects is for the degredation of roadways associated with right-of-way permits. Department Head: Dir of PW / City Engineer General Activity Description The function of Right -of -Way Management is to provide for: management of the public rights-of-way and to recover the rights-of-way management costs; and to regulate the use of public rights-of-way by providers of telecommunication services, public utility services and the like, in a fair, efficient, competitively neutral and substantial uniform manner. Process Used To achieve this purpose, state law gives the City several powers to include requiring the following: 1. Require permits for work within the right-of-way. 2. Collect fees to recover costs associated with the permit including damages to the right-of-way. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Charitable Gambling Fund Statement of Revenues, Expenditures and Changes in Fund Balance 1 Actual Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 57,236 $ 74,742 $ 74,742 $ 54,142 921 40,457 41,378 41,378 98,614 23,872 23,872 $ 74,742 $ 17,506 31% 300 15,000 15,300 15,300 90,042 26,000 26,000 $ 64,042 $ (10,700) -14% 400 30,000 30,400 30,400 105,142 51,000 51,000 $ 54,142 $ (20,600) -28% 400 15,000 15,400 15,400 69,542 26,300 26,300 $ 43,242 $ (10,900) -20% 17 W Fund: Charitable Gambling Activity Type/Code: Special Revenue Department Head: Finance Director Expenditure Hiehliehts I General Activity Description This fund was created to track the donations received from the Andover Hockey Association and Andover Football Association from their gambling activities. Funding is used towards the Alexandra House, Youth First, Family of Promise, teen programing, etc.. Funding for these expenditures is dependent upon donations. The licensed organizations are required to donate 10% of their net profits to the City. Process Used According to State Statute, all expenditures from this fund must be for police, fire and other emergency or public safety-related services, equipment, and and training, excluding pension obligations, or qualifying public service organizations. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Special Revenue Funds Construction Seal Coating Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses $ 3,366 $ 3,213 $ 3,213 $ 3,713 9,413 Actual 1 Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses $ 3,366 $ 3,213 $ 3,213 $ 3,713 9,413 5,000 5,000 17,000 1,481 300 500 500 10,894 5,300 5,500 17,500 10,894 5,300 5,500 17,500 14,260 8,513 8,713 21,213 11,047 5,000 5,000 17,000 11,047 5,000 5,000 17,000 Fund Balance, December 31 $ 3,213 $ 3,513 $ 3,713 Change in Fund Balance $ (153) $ 300 $ 500 -5% 9% 16% $ 4,213 $ 500 13% 19 Fund: Construction Seal Coating Activity Type/Code: Special Revenue Expenditure Highlights 20 The Construction Seal Coating Special Revenue Fund was established in 1996 and is utilized for the first application of crack seal and seal coat in new developments. Department Head: Dir of PW / City Engineer General Activity Description The Construction Seal Coating Special Revenue Fund accounts for contributions associated with land development to be used for the respective developments first application of crack seal and seal coat. Process Used The City has an annual crack seal and seal coat program. Currently the City is divided into nine zones and these developments are done within four years of being constructed. Crack sealing is completed one year prior to seal coating. This allows the crack sealing material to cure and minimize bleed through once seal coated. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 21 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET DEBT SERVICE FUNDS DEFINITION: A debt service fund accounts for the accumulation of resources for, and the payment of general long-term principal and interest. Repayment of the debt through principal and interest payments to bond holders is backed by the full faith and credit of the government unit. City of Andover Debt Service Funds 2017 Budget - All Debt Service Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 1,073,535 2,134,650 (1,287) 2,133,363 300,000 2,433,363 3,506,898 1,765,000 470,687 5,009 2,240,696 48,902 2,289,598 $ 1,217,300 $ 143,765 13% $ 1,217,300 2,100,413 2,000 2,102,413 376,860 2,479,273 3,696,573 1,770,000 439,698 2,450 2,212,148 104,123 2,316,271 $ 1,380,302 $ 163,002 13% $ 1,217,300 $ 1,308,862 2,100,413 (8,000) 2,092,413 311,417 2,403,830 3,621,130 1,770,000 444,144 2,375 2,216,519 95,749 2,312,268 $ 1,308,862 $ 91,562 8% 1,610,047 1,610,047 300,000 1,910,047 3,218,909 1,800,000 418,419 2,000 2,220,419 48,819 2,269,238 $ 949,671 $ (359,191) -27% 22 Actual Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 1,073,535 2,134,650 (1,287) 2,133,363 300,000 2,433,363 3,506,898 1,765,000 470,687 5,009 2,240,696 48,902 2,289,598 $ 1,217,300 $ 143,765 13% $ 1,217,300 2,100,413 2,000 2,102,413 376,860 2,479,273 3,696,573 1,770,000 439,698 2,450 2,212,148 104,123 2,316,271 $ 1,380,302 $ 163,002 13% $ 1,217,300 $ 1,308,862 2,100,413 (8,000) 2,092,413 311,417 2,403,830 3,621,130 1,770,000 444,144 2,375 2,216,519 95,749 2,312,268 $ 1,308,862 $ 91,562 8% 1,610,047 1,610,047 300,000 1,910,047 3,218,909 1,800,000 418,419 2,000 2,220,419 48,819 2,269,238 $ 949,671 $ (359,191) -27% 22 City of Andover Debt Service Funds Certificates/Capital Notes - 2012A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 373,049 $ 506,434 $ 506,434 $ 589,669 139,881 5,738 Actual Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 373,049 $ 506,434 $ 506,434 $ 589,669 139,881 5,738 142,885 2,000 145,619 144,885 145,619 144,885 518,668 651,319 - 50,000 11,700 11,200 534 500 142,885 2,000 144,885 144,885 651,319 50,000 11,200 450 12,234 61,700 61,650 589,669 535,000 5,350 500 540,850 - - - 48,819 12,234 61,700 61,650 589,669 Fund Balance, December 31 $ 506,434 $ 589,619 $ 589,669 $ Change in Fund Balance $ 133,385 $ 83,185 $ 83,235 $ (589,669) 36% 16% 16% -100% 23 Fund: 3211 Cost Center: 2012A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal 2017 $ 540,350 $ 535,000 Intprpct $ 5,350 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $585,000 of Capital Notes in 2012 to facilitate the purchase of new equipment. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 24 City of Andover Debt Service Funds Certificates/Capital Notes - 2014 G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 263,348 $ 303,366 $ 303,366 $ 314,986 295,803 295,470 295,470 1,351 - 297,154 295,470 295,470 297,154 560,502 225,000 31,926 210 257,136 257.136 $ 303,366 $ 40,018 15% 295,470 598,836 260,000 23,350 500 283,850 295,470 598,836 260,000 23,350 500 283,850 295,260 295,260 295,260 610,246 260,000 18,800 500 279,300 283,850 283,850 279,300 $ 314,986 $ 11,620 4% $ 314,986 $ 11,620 4% $ 330,946 $ 15,960 5% 25 Actual 1 1 Adopted Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 263,348 $ 303,366 $ 303,366 $ 314,986 295,803 295,470 295,470 1,351 - 297,154 295,470 295,470 297,154 560,502 225,000 31,926 210 257,136 257.136 $ 303,366 $ 40,018 15% 295,470 598,836 260,000 23,350 500 283,850 295,470 598,836 260,000 23,350 500 283,850 295,260 295,260 295,260 610,246 260,000 18,800 500 279,300 283,850 283,850 279,300 $ 314,986 $ 11,620 4% $ 314,986 $ 11,620 4% $ 330,946 $ 15,960 5% 25 Fund: 3212 Cost Center: 2014A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 278,800 $ 260,000 $ 18,800 2018 278,550 265,000 13,550 2019 278,200 270,000 8,200 2020 277,750 275,000 2,750 $ 1,113,300 $ 1,070,000 $ 43,300 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $1,355,000 of Capital Notes in 2014 to facilitate the purchase of equipment. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Debt Service Funds Certificates/Capital Notes - 2016 G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses $ $ $ $ 4,940 152,529 - 152,529 9,386 - 9,386 152,529 9,386 157,469 4,446 9,880 4,446 9,880 Operating Transfers Out - Total Expenditures and Other Uses, 4,446 9,880 Fund Balance, December 31 $ $ $ 4,940 $ 147,589 Change in Fund Balance $ $ $ 4,940 $ 142,649 n/a n/a n/a 2888% 27 Actual 1 Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses $ $ $ $ 4,940 152,529 - 152,529 9,386 - 9,386 152,529 9,386 157,469 4,446 9,880 4,446 9,880 Operating Transfers Out - Total Expenditures and Other Uses, 4,446 9,880 Fund Balance, December 31 $ $ $ 4,940 $ 147,589 Change in Fund Balance $ $ $ 4,940 $ 142,649 n/a n/a n/a 2888% 27 nj Fund: 3213 Cost Center: 2016A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount 2017 $ 9,880 2018 134,683 2019 135,260 2020 134,791 2021 135,273 Principal 126,000 129,000 131,000 134,000 intprpAt $ 9,880 8,683 6,260 3,791 1,273 $ 549,887 $ 520,000 $ 29,887 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $520,000 of Capital Notes in 2016 to facilitate the purchase of equipment. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Debt Service Funds General Obligation Bonds - 2012B G.O. Capital Improvement Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 55,568 $ 76,564 $ 76,564 539,660 (3,730) 535,930 535,930 591,498 500,000 14,400 534 514,934 498,435 498,435 498,435 574,999 470,000 4,700 450 475,150 - 104,123 514,934 579,273 $ 76,564 $ 20,996 38% $ (4,274) $ (80,838) -106% 498,435 (4,000) 494,435 494,435 570.999 470,000 4,700 550 475,250 95,749 570,999 $ (76,564) -100% n/a 29 Actual 1 Adopted 1 Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 55,568 $ 76,564 $ 76,564 539,660 (3,730) 535,930 535,930 591,498 500,000 14,400 534 514,934 498,435 498,435 498,435 574,999 470,000 4,700 450 475,150 - 104,123 514,934 579,273 $ 76,564 $ 20,996 38% $ (4,274) $ (80,838) -106% 498,435 (4,000) 494,435 494,435 570.999 470,000 4,700 550 475,250 95,749 570,999 $ (76,564) -100% n/a 29 Fund: 3303 Cost Center: 20128 G.O. Capital Improvement Refunding Bonds Activity Type/Code: Debt Service This fund will be closed in 2016. Department Head: Finance Director General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $3,890,000 of General Obligation Bonds in 2004 to finance the purchase of the Public Works Facility from the Andover Economic Development Authority and the construction of Fire Station #3. This issue will be used to refund the original issue sold in 2004. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA T City of Andover Debt Service Funds General Obligation Bonds - 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out $ 64,809 $ 115,802 $ 115,802 $ 170,203 974,822 (5,810) 969,012 300,000 1,269,012 1,333,821 977,332 977,332 371,598 1,348,930 1,464,732 977,332 (6,000) 971,332 300,000 1,271,332 1,387,134 974,418 974,418 300,000 1,274,418 1,444,621 835,000 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out $ 64,809 $ 115,802 $ 115,802 $ 170,203 974,822 (5,810) 969,012 300,000 1,269,012 1,333,821 977,332 977,332 371,598 1,348,930 1,464,732 977,332 (6,000) 971,332 300,000 1,271,332 1,387,134 974,418 974,418 300,000 1,274,418 1,444,621 835,000 845,000 845,000 855,000 379,906 371,506 371,506 358,731 3,113 500 425 500 1,218,019 1,217,006 1,216,931 1,214,231 Fund Balance, December 31 $ 115,802 Change in Fund Balance $ 50,993 79% $ 247,726 $ 131,924 114% $ 170,203 $ 54,401 47% $ 230,390 $ 60,187 35% 31 Fund: 3405 Cost Center: 2012C G.O. Abatement Bonds Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 G I71.71S $ 1,213,731 1,211,482 1,208,932 1,215,982 1,212,632 1,213,932 1,209,282 1,213,000 1,209,356 1,208,275 1,205,250 1,205,147 1,212,675 1,213,400 1,218,000 $18,171,076 Principal $ 855,000 870,000 885,000 910,000 925,000 945,000 960,000 985,000 1,005,000 1,030,000 1,055,000 1,085,000 1,125,000 1,160,000 1,200,000 $14,995,000 Interest $ 358,731 341,482 323,932 305,982 287,632 268,932 249,282 228,000 204,356 178,275 150,250 120,147 87,675 53,400 18,000 $ 3,176,076 32 Department Head: Finance Director General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $19,580,000 of Lease Revenue Bonds in 2004 to finance the construction of a community center. Approximately 50% of the debt will be paid for by a long-term lease arrangement with the YMCA of Minneapolis. The YMCA will run a full service YMCA out of the Community Center building. This issue will be used to advance refund the refunding issues sold in 2006 and 2007 that refunded the 2004 issue. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Debt Service Funds State Aid Bonds - 2009A G.O. State Aid Road Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Description 1 Actual 2015 1 Adopted 2016 Estimate 2016 Adopted 1 2017 Fund Balance, January 1 $ 109,742 $ $ $ Revenues Intergovernmental - Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: 109,742 - Expenditures Debt Service Principal 60,000 - Interest 840 - Other - - Total Expenditures: 60,840 - Other Uses Operating Transfers Out 48,902 Total Expenditures and Other Uses: 109,742 Fund Balance, December 31 $ - $ $ $ Change in Fund Balance $ (109,742) $ - $ $ -100% n/a n/a n/a 33 Fund: 3702 Cost Center: 2009A G.O. State Aid Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service This fund was closed in 2015. General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $2,755,000 of G.O. State Aid Bonds in 2001 to finance state aid eligible road improvement projects in the City. This issue will be used to refund a portion of the original issue sold in 2001. ADOPTED 2017 BUDGET CITY OF ANDOVER. MINNESOTA 34 City of Andover Debt Service Funds General Obligation Bonds - 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 207,019 $ 215,134 $ 215,134 184,484 1,164 185,648 185,648 392,667 145,000 31,915 618 177,533 186,291 186,291 5,262 191,553 406,687 145,000 28,942 500 174,442 186,291 186,291 2,031 188,322 403,456 145,000 28,942 450 174,392 $ 229,064 187,840 187,840 187,840 416,904 150,000 25,658 500 176,158 177,533 174,442 174,392 176,158 $ 215,134 $ 8,115 4% $ 232,245 $ 17,111 8% $ 229,064 $ 13,930 6% $ 240,746 $ 11,682 5% 35 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 207,019 $ 215,134 $ 215,134 184,484 1,164 185,648 185,648 392,667 145,000 31,915 618 177,533 186,291 186,291 5,262 191,553 406,687 145,000 28,942 500 174,442 186,291 186,291 2,031 188,322 403,456 145,000 28,942 450 174,392 $ 229,064 187,840 187,840 187,840 416,904 150,000 25,658 500 176,158 177,533 174,442 174,392 176,158 $ 215,134 $ 8,115 4% $ 232,245 $ 17,111 8% $ 229,064 $ 13,930 6% $ 240,746 $ 11,682 5% 35 M. Fund: 3901 Cost Center: 2010A G.O. Open Space Referendum Bonds Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 175,658 $ 150,000 $ 25,658 2018 176,841 155,000 21,841 2019 177,507 160,000 17,507 2020 172,827 160,000 12,827 2021 172,870 165,000 7,870 2022 172,656 170,000 2,656 $ 1,048,359 $ 960,000 $ 88,359 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $1,660,000 of Open Space Referendum Bonds in 2010 to finance the purchase of land to remain as open space. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 37 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET CAPITAL PROJECTS FUNDS llEFINITION: Capital Projects Funds can be used to account for acquisition or construction of major capital facilities financed mainly with governmental fund resources, general obligation debt, special assessments, special assessment debt, grants, or other resources that are not part of proprietary funds or trust funds. City of Andover Capital Projects Funds 2017 Budget Summary - All Capital Projects Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Bond Proceeds Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 19,915,930 $ 22,165,776 $ 22,165,776 $ 21,033,420 1,338,858 213,020 690,161 210,220 271,437 615,544 1,415, 984 1,153, 000 813,743 158,400 262,421 1,415, 984 118,480 584,032 829,544 179,805 844,682 1,944,154 118,480 687,000 1,314,902 163,000 270,183 162,574 Actual Adopted Estimate 1 Adopted Description 2015 2016 2016 1 2016 Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Bond Proceeds Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 19,915,930 $ 22,165,776 $ 22,165,776 $ 21,033,420 1,338,858 213,020 690,161 210,220 271,437 615,544 1,415, 984 1,153, 000 813,743 158,400 262,421 1,415, 984 118,480 584,032 829,544 179,805 844,682 1,944,154 118,480 687,000 1,314,902 163,000 270,183 162,574 2,000 381,755 102,000 3,501,814 3,805,548 4,354,282 4,599,719 648,902 510,923 752,549 453,819 - 580,000 520,000 - 854,057 - 352,482 1,502,959 1,090,923 1,625,031 453,819 5,004,773 4,896,471 5,979,313 5,053,538 24,920,703 27,062,247 28,145,089 26,086,958 148,506 370,000 346,500 205,000 1,278,383 4,193,000 5,027,867 3,772,470 1,073,070 2,085,000 1,444,070 3,124,800 196,719 196,719 196,719 196,719 2,696,678 6,844,719 7,015,156 7,298,989 58,249 90,358 96,513 54,228 2,754,927 $ 22,165,776 6,935,077 $ 20,127,170 Change in Fund Balance $ 2,249,846 $ (2,038,606) 11% -9% 7,111,669 $ 21,033,420 $ (1,132,356) -5% 7,353,217 $ 18,733,741 $ (2,299,679) -11% w City of Andover Capital Projects Funds Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 2,637,713 $ 2,854,563 $ 2,854,563 $ 2,841,345 42,342 Actual Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 2,637,713 $ 2,854,563 $ 2,854,563 $ 2,841,345 42,342 30,000 286,072 30,000 35,034 50,000 25,000 25,000 309,873 67,756 231,598 70,471 387,249 147,756 542,670 125,471 387,249 3,024,962 2,290 109,860 112,150 58,249 170,399 $ 2,854,563 Change in Fund Balance $ 216,850 8% 147,756 3,002,319 40M0 40,000 85,096 125,096 $ 2,877,223 $ 22,660 1% 542,670 3,397,233 430,792 40,000 470,792 85,096 555,888 $ 2,841,345 $ (13,218) 0% 125,471 2,966,816 43,000 43,000 54,228 97,228 $ 2,869,588 $ 28,243 1% 39 Fund: 4110 40 Cost Center: Water Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights Projects planned for 2017 include: New Development Projects $ 43,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. 2016 included the advance payment of permit fees to various funds, in which, the Water Trunk fund will get reimbursed through the assessment process with interest ($327,854). Projects for 2016 included: Water Main Extension - Country Oaks North $ 75,495 Water Main Extension - Bunker Lake Blvd 15,272 General Activity Descrintion The Water Trunk Capital Projects Fund accounts for water access fees and trunk improvements as part of development. Process Used The water system is continually reviewed by the Engineering and Water Departments through studies of service, water quality, and future system expansion or improvements. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 5,541,793 $ 6,081,930 $ 6,081,930 $ 6,589,710 27,195 Actual 1 Adopted 1 1 Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 5,541,793 $ 6,081,930 $ 6,081,930 $ 6,589,710 27,195 20,000 20,000 105,000 75,978 50,000 50,000 50,000 96,094 12,415 147,780 12,912 199,267 82,415 217,780 167,912 400,000 599,267 6,141,060 1,035 58,095 59,130 59,130 $ 6,081,930 $ 540,137 10% 400,000 482,415 6,564,345 110,000 110,000 110,000 $ 6,454,345 $ 372,415 6% 400,000 617,780 6,699,710 110,000 110,000 110,000 $ 6,589,710 $ 507,780 8% 400,000 reg nd O 7,157,622 502,000 502,000 502,000 $ 6,655,622 $ 65,912 1% 41 Fund: 4120 42 Cost Center: Sewer Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights Projects planned for 2017 include: New Development Projects Lift Station #4 Upgrade Sanitary Sewer Extensions Replacement - Jet/Vac Truck Projects for 2016 included: $ 117,000 50,000 105,000 230,000 $ 502,000 General Activity Desciption The Sewer Trunk Capital Projects Fund accounts for access fees and sanitary sewer improvements. City sewage flows through a pipe and lift station system to a large sewer interceptor, which is then carried to a metro treatment plant. Process Used The Sewer and Engineering Departments continually review the system Sanitary Sewer Extension - 7th Ave $ 29,877 to determine the proper sizing of pipes and lift stations to process sewage. Sanitary Sewer Oversizing - Winslow Woods 2nd 64,725 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA Fund: 4130 43 Cost Center: Storm Sewer Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights No expenditures planned for 2017. General Activity Description The Storm Sewer Capital Projects Fund accounts for storm sewer fees and improvements as part of development and ongoing maintenance. Process Used The storm sewer system is continually reviewed by Public Works and Engineering through studies of storm water runoff and drainage patterns. Note: There is one part of the City where a special storm sewer trunk area assessment is required as part of any new development. This will be used to fund the oversizing of the storm sewer that was constructed under Project #93-3: Xeon Street Trunk Storm Sewer. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ (64,418) $ (63,357) $ (63,357) $ (64,157) (807) (800) 1,868 - 1,061 (800) 1,061 (800) (63,357) (63,357) (64,157) (64,157) $ (63,357) $ (63,357) $ (64,157) $ (64,157) $ 1,061 $ $ (800) $ - -2% 0% 1% 0% 44 Actual Adopted 1 Estimate Adopted 1 Description 2015 2016 1 2016 2017 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ (64,418) $ (63,357) $ (63,357) $ (64,157) (807) (800) 1,868 - 1,061 (800) 1,061 (800) (63,357) (63,357) (64,157) (64,157) $ (63,357) $ (63,357) $ (64,157) $ (64,157) $ 1,061 $ $ (800) $ - -2% 0% 1% 0% 44 City of Andover Capital Projects Funds Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,998,161 1,026,577 493,996 194,797 65,307 1.780.677 48,902 104,791 153,693 1,934,370 6,932,531 1,103,853 316,931 1,420,784 $ 5,511,747 1,150,984 1,053, 000 813,743 25,000 3,042,727 6,800 6,800 3,049,527 8,561,274 4,178,000 4,178,000 5,511,747 1,150,984 200,000 829,544 45,000 358,955 2,584,483 6,800 6,800 2,591,283 8,103,030 4,178,000 4,178,000 $ 3,925,030 1,179,154 552,000 1,314,902 35,000 3,081,056 5,000 5,000 3,086,056 7,011,086 3,657,000 3,657,000 1,420.784 4,178,000 4,178,000 3,657,000 $ 5,511,747 $ 4,383,274 $ 3,925,030 $ 3,354,086 Change in Fund Balance $ 513,586 $ (1,128,473) $ (1,586,717) $ (570,944) 10% -20% -29% -15% 261 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,998,161 1,026,577 493,996 194,797 65,307 1.780.677 48,902 104,791 153,693 1,934,370 6,932,531 1,103,853 316,931 1,420,784 $ 5,511,747 1,150,984 1,053, 000 813,743 25,000 3,042,727 6,800 6,800 3,049,527 8,561,274 4,178,000 4,178,000 5,511,747 1,150,984 200,000 829,544 45,000 358,955 2,584,483 6,800 6,800 2,591,283 8,103,030 4,178,000 4,178,000 $ 3,925,030 1,179,154 552,000 1,314,902 35,000 3,081,056 5,000 5,000 3,086,056 7,011,086 3,657,000 3,657,000 1,420.784 4,178,000 4,178,000 3,657,000 $ 5,511,747 $ 4,383,274 $ 3,925,030 $ 3,354,086 Change in Fund Balance $ 513,586 $ (1,128,473) $ (1,586,717) $ (570,944) 10% -20% -29% -15% 261 Fund: 4140 Cost Center: Road and Bridge Activity Type/Code: Capital Projects Expenditure Highlights Some of the major 2017 projects are as follows: Annual street seal coat Annual street crack seal New / reconstruct routes MSA - New / reconstruct routes Pedestrian trail maintenance Pedestrian trail reconstruction Pedestrian curb ramp replacement LED Crosswalk Warning system Annual pavement markings Gravel road improvements Curb replacement Some of the major 2016 projects are as follows: Annual street seal coat Annual street crack seal New / reconstruct routes MSA - New / reconstruct routes Pedestrian trail maintenance Pedestrian trail reconstruction Annual pavement markings Gravel road improvements Curb replacement $ 725,000 143,000 1,236,000 1,300,000 50,000 60,000 15,000 21,000 42,000 15,000 50,000 $ 3,657,000 $ 460,000 225,000 693,000 2,600,000 45,000 50,000 40,000 15,000 50,000 $ 4,178,000 Department Head: City Engineer General Activity Description The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Process Used Construction projects are identified by the capital improvement process and contained in the five-year Capital Improvement Plan (CIP). The council approves the CIP annually, thereby initiating a process of feasibility study, preparation of plans and specifications, public hearings, ordering of the project, bidding the project and construction. This fund also accounts for the pavement management program, which includes annual seal coating, crack sealing and overlays for roads. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 46 City of Andover Capital Projects Funds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 334,566 $ 376,632 $ 376,632 $ 376,120 61,918 4,584 170,144 21,289 257,935 257,935 592,501 43,811 172,058 215,869 15,000 144,950 159,950 159,950 536,582 15,000 258,000 273,000 15,000 3,500 365,830 7,500 391,830 391,830 768,462 15.000 377,342 392.342 15,000 147,600 100,000 262,600 262,600 638,720 15,000 584,800 599,800 215,869 273,000 392,342 599,800 $ 376,632 $ 42,066 13% $ 263,582 $ (113,050) -30% $ 376,120 $ (512) 0% $ 38,920 $ (337,200) -90% 47 Actual 1 Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 334,566 $ 376,632 $ 376,632 $ 376,120 61,918 4,584 170,144 21,289 257,935 257,935 592,501 43,811 172,058 215,869 15,000 144,950 159,950 159,950 536,582 15,000 258,000 273,000 15,000 3,500 365,830 7,500 391,830 391,830 768,462 15.000 377,342 392.342 15,000 147,600 100,000 262,600 262,600 638,720 15,000 584,800 599,800 215,869 273,000 392,342 599,800 $ 376,632 $ 42,066 13% $ 263,582 $ (113,050) -30% $ 376,120 $ (512) 0% $ 38,920 $ (337,200) -90% 47 Fund: 4150 48 Cost Center: Park Dedication Projects Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Hiehli¢hts 2017 Projects include: Annual Miscellaneous Projects $ 15,000 Pine Hills North - Phase II 100,000 Fox Meadows Park - Renovation 457,300 Irrigation Projects - Small Parks 20,000 Nordeen's Park - Basketball Court 7,500 $ 599,800 2016 Projects include: Annual Miscellaneous Projects $ 15,000 Timber Trails Park Renovation 284,000 Terrace Park - Irrigation & Water Service 35,000 Mapleview Park - Playground structure 26,910 Sunshine Park - Scoreboard Wiring & Design 23,000 $ 383,910 General Activity Desciotion The Park Dedication Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's park system. Process Used The Park and Recreation Commission evaluates the needs of the community with regard to park and recreation facilities. Recommendations are made to the City Council and projects are then placed into the annual City Capital Improvement Plan. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 846,411 $ 779,066 $ 779,066 10,843 135,003 145,846 145,846 992,257 6,000 5,000 6,000 5,000 $ 671,110 5,000 5,000 104,123 95,749 - 110,123 100,749 5,000 889,189 879,815 676,110 16,472 - 2,600 - 196,719 196,719 196,719 196,719 213,191 196,719 199,319 196,719 213,191 196,719 m 208,705 196,719 Fund Balance, December 31 $ 779,066 $ 692,470 $ 671,110 $ 479,391 Change in Fund Balance $ (67,345) $ (86,596) $ (107,956) $ (191,719) -8% -11% -14% -29% w Actual 1 Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 846,411 $ 779,066 $ 779,066 10,843 135,003 145,846 145,846 992,257 6,000 5,000 6,000 5,000 $ 671,110 5,000 5,000 104,123 95,749 - 110,123 100,749 5,000 889,189 879,815 676,110 16,472 - 2,600 - 196,719 196,719 196,719 196,719 213,191 196,719 199,319 196,719 213,191 196,719 m 208,705 196,719 Fund Balance, December 31 $ 779,066 $ 692,470 $ 671,110 $ 479,391 Change in Fund Balance $ (67,345) $ (86,596) $ (107,956) $ (191,719) -8% -11% -14% -29% w Fund: 4160 50 Cost Center: Building Fund Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Hi¢hliehts In 2013, the City has signed a contract for deed to purchase some land adjacent to the city hall / public works campus. As part of that agreement, annual payments will be made starting in 2013 with final payment in 2018. 2017 $ 196,719 2018 196,719 $ 393,438 General Activity Description The Building Fund accounts for miscellaneous building improvement projects for all facilities, including land acquisitions. Process Used Facilities are reviewed annually for non-recurring repairs or for future facility needs. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 134,963 $ 347,400 2,124 39,433 41,557 200,000 241,557 376,520 6,092 23,028 29,120 120 $ 347,400 $ 212,437 157% 400 37,300 37,700 37,700 385,100 357,000 357,000 357,000 $ 28,100 $ (319,300) -92% $ 347,400 3,600 99,474 103,074 250,000 353,074 700,474 357,000 357,000 357,000 $ 343,474 $ (3,926) -1% $ 343,474 3,000 39,200 42,200 42,200 385,674 565,000 565,000 565,000 $ (179,326) $ (522,800) -152% 51 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 134,963 $ 347,400 2,124 39,433 41,557 200,000 241,557 376,520 6,092 23,028 29,120 120 $ 347,400 $ 212,437 157% 400 37,300 37,700 37,700 385,100 357,000 357,000 357,000 $ 28,100 $ (319,300) -92% $ 347,400 3,600 99,474 103,074 250,000 353,074 700,474 357,000 357,000 357,000 $ 343,474 $ (3,926) -1% $ 343,474 3,000 39,200 42,200 42,200 385,674 565,000 565,000 565,000 $ (179,326) $ (522,800) -152% 51 Fund: 4170 Cost Center: Trail & Transportation Activity Type/Code: Capital Projects Expenditure Hiehliehts Projects planned for 2017 include: 8' Bituminous trail along Crosstown Blvd - Bunker Lake Blvd NW to 140th Ave - $565,000 Projects planned for 2016 include: 8' Bituminous trail along Crosstown Blvd - Coon Creek bridge to South Coon Creek Drive - $118,000 5' Concrete sidewalk along Bunker Lake Blvd - Yukon St to Hidden Creek Park North - $52,000 5' Concrete sidewalk along Bunker Lake Blvd - Crosstown Blvd to Yukon St- $187,000 Department Head: Dir of PW I City Engineer General Activitv Descrintion The Trail and Transportation Capital Projects Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's Trail System. Process Used The Park and Recreation Commission evaluates the needs of the community with regard to trail facilities. Recommendations are made to the City Council and projects are then placed into the annual City Capital Improvement Plan. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 52 City of Andover Capital Projects Funds Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 886,768 $ 1,051,687 $ 1,051,687 250,363 12,872 4,414 267,649 113,150 380,799 1,267,567 142,414 73,466 215,880 215,880 $ 1,051,687 $ 164,919 19% 250,000 4,000 2,000 256,000 256,000 1,307,687 340,000 20,000 360,000 360,000 $ 947,687 $ (104,000) -10% 250,000 6,000 15,300 271,300 14,337 285,637 1,337,324 340,000 20,000 360,000 360.000 $ 977,324 $ (74,363) -7% 977,324 750,000 5,000 2,000 757,000 48.819 805,819 1,783,143 205,000 680,000 885,000 885,000 $ 898,143 $ (79,181) -8% 53 Actual 1 Adopted 1 Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 886,768 $ 1,051,687 $ 1,051,687 250,363 12,872 4,414 267,649 113,150 380,799 1,267,567 142,414 73,466 215,880 215,880 $ 1,051,687 $ 164,919 19% 250,000 4,000 2,000 256,000 256,000 1,307,687 340,000 20,000 360,000 360,000 $ 947,687 $ (104,000) -10% 250,000 6,000 15,300 271,300 14,337 285,637 1,337,324 340,000 20,000 360,000 360.000 $ 977,324 $ (74,363) -7% 977,324 750,000 5,000 2,000 757,000 48.819 805,819 1,783,143 205,000 680,000 885,000 885,000 $ 898,143 $ (79,181) -8% 53 Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Expenditure Highlights 54 Projects outlined in the 2017 - 2021 CIP for year 2017 using the Capital Equipment Reserve Capital Projects Fund include: Department Head: Finance Director General Activity Description Resources for this fund come from residual fund transfers, interest earnings, and property tax (capital) levy. Using 2017 Capital Projects Reserve / levy: Process Used Annual Parking Lot Maintenance $ 30,000 During 2016 and 2017 budget processes, it was determined that various capital Replacement - Planning Vehicle #7 30,000 expenditures were necessary. The Andover Management Team and Andover Replacement - Carpet / Tile 10,000 Vehicle Purchasing Committee reviewed departmental needs and prioritized Replacement - Security System 100,000 capital needs. Public Works Relocation / Expansion Plan 50,000 HD Upgrade - City Hall Council Chambers 60,000 2017 includes a Capital Equipment Purchases levy of $500,000 to purchase Replacement - Extrication (Rescue) Equipment 80,000 equipment with levy dollars instead of issuing debt. Emergency Operations Center Improvement 40,000 Replacement - Emergency Sirens 45,000 Replacement - One Ton Truck w/ Plow #134 80,000 New - One Ton Truck w/ Reg. Box w/ Lift & Plow 55,000 New- Bobcat Paver 20,000 Sign Design Software & Plotter 10,000 ACC / YMCA Expansion Plan 75,000 New - Trail Machine 150,000 Replacement - One Ton Crew Cab Pickup #502 50,000 $ 885,000 Using 2016 Capital Projects Reserve/ levy: Annual Parking Lot Maintenance $ 30,000 Public Works/Community Center Master Planning 25,000 Replacement - SCBA's 250,000 Add / Replace server 20,000 Replacement - 800 MHz Radios 35,000 $ 360,000 ADOPTED 2017 BUDGET CITY OF ANDOVER. MINNESOTA City of Andover Capital Projects Funds 2014 G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Description Actual 1 2015 Adopted 1 2016 Estimate 2016 Adopted 2017 Fund Balance, January 1 S 112,513 $ 25,223 $ 25,223 $ Revenues Investment Income 681 - - Other Sources Transfers In - Total Revenues and Other Sources: 681 - Total Available: 113,194 25,223 25,223 Expenditures Capital Outlay 87,971 - 25,223 Other Uses Operating Transfers Out - Total Expenditures and Other Uses: 87,971 25,223 Fund Balance, December 31 $ 25,223 $ 25,223 $ - $ Change in Fund Balance $ (87,290) $ - $ (25,223) $ n/a 0% -100% n/a 55 Fund: 4212 56 Cost Center: 2014 G.O. Capital Notes Department Head: Finance Director Activity Type/Code: Capital Projects Exuenditure Highlights The following is a list of equipment purchased with a 2014 Capital Note. Capital Note. Vehicle / Equipment Replacements: New- Mobile Vehicle Lifts $ 24,000 Survey Equipment 32,000 Replacement - Ladder Truck #11 1,100,000 Replacement - Bobcat #610 36,000 Replacement - Dump Truck w/ Snow Removal Equipment 150,000 Replacement - Fire Utility #4 32,000 Replacement - Fire Utility #5 32,000 Replacement - Toro Groundmaster #559 35,000 Replacement - One Ton Truck w/ Plow #503 65,000 New - Snowblower Attachment - Belos 23,000 Replacement - Snowblower Attachment - Bobcat 7,000 New - Add Rear Wing to Plow Truck 30,000 $ 1,566,000 This fund was closed in 2016. General Activity Description This fund accounts for major capital equipment purchases. Resources for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5 -year duration and debt service is funded via the annual tax levy. Process Used During the 2014 budget process it was determined that various capital equipment was necessary. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds 2016 G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Other Sources Bond Proceeds Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance 1,005 - 580,000 Actual Adopted 1 1 Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income Other Sources Bond Proceeds Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance 1,005 - 580,000 520,000 - 580,000 521,005 - 580,000 521,005 - 30,000 6,500 - 550,000 514,505 - - 580,000 521,005 - 580,000 521,005 n/a n/a n/a n/a 57 Fund: 4213 58 Cost Center: 2016 G.O. Capital Notes Department Head: Finance Director Activity Type/Code: Capital Projects EEtx enditure Hiahliehts The following is a list of equipment purchased with a 2016 Capital Note. Capital Note. Vehicle / Equipment Replacements: Replacement - Small Extended Cab Pick Up #9 Replacement - Fire Marshall Vehicle Replacement - Breathing Air Compressor at St. #1 Replacement -Toro Groundmaster #559 Replacement - Toro Groundmaster #585 Replacement - Toro Groundmaster 4000-D #583 Replacement - Dump Truck w/ Snow Removal #196 This fund was closed in 2016. $ 30,000 40,000 80,000 45,000 110,000 70,000 200,000 $ 575,000 General Activity Description This fund accounts for major capital equipment purchases. Resources for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5 -year duration and debt service is funded via the annual tax levy. Process Used During the 2016 budget process it was determined that various capital equipment was necessary. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Tax Increments Intergovernmental Investment Income Total Revenues: Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 3,546,286 $ 4,358,069 $ 4,358,069 $ 4,448,219 213,020 Actual 1 Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Tax Increments Intergovernmental Investment Income Total Revenues: Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 3,546,286 $ 4,358,069 $ 4,358,069 $ 4,448,219 213,020 118,480 118,480 15,423 - - - 56,778 20,000 35,000 35,000 285,221 20,000 153,480 153,480 636,116 - 338,145 - 921,337 20,000 491,625 153,480 4,467,623 4,378,069 4,849,694 4,601,699 109,554 - 401,475 100,470 - 750,000 - 750,000 109,554 750,000 401,475 850,470 109,554 750,000 401,475 850,470 $ 4,358,069 $ 3,628,069 $ 4,448,219 $ 3,751,229 $ 811,783 $ (730,000) $ 90,150 $ (696,990) 23% -17% 2% -16% 59 Fund: 4501 60 Cost Center: Tax Increment Projects Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Hiehliehts 2017 Budgeted expenditures include: Redevelopment Site Purchases $ 750,000 Pay -As -You -Go Note 58,623 Administration 41,847 $ 850,470 2016 expenditures include: Pay -As -You -Go Note $ 58,623 Soil Corrections 35,000 Administration 31,847 Decertification payback 276,005 $ 401,475 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. TIF District 1-3 and TIF District 1-4 was decertified in 2016. General Activity Description The Tax Increment Projects Fund accounts for activities in TIF districts 1-1, 1-2, 1-3, 1-4, 1-5 and 1-6 and all TIF land sales and expenditures to reach the goals of the TIF district plans. Process Used Promotion and expansion of the commercial / industrial tax base through redevelopment of land. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance LL Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 $ 705,751 $ 840,785 $ 840,785 $ 925,245 Revenues Special Assessments 126,628 50,000 77.960 - Investment Income 9,774 3,000 6,500 5,000 Total Revenues: 136,402 53,000 84,460 5,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 136,402 53,000 84,460 5,000 Total Available: 842,153 893,785 925,245 930,245 Expenditures Other Services and Charges 1,368 - - - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: 1,368 - - Fund Balance, December 31 $ 840,785 $ 893,785 $ 925,245 $ 930,245 Change in Fund Balance $ 135,034 $ 53.000 $ 94 d,n S 5 nor 19% 6% 109/() 1'%o 61 Fund: 4601 62 Cost Center: Permanent Improvement Revolving Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights No expenditures are planned for 2017. General Activity Description The Permanent Improvement Revolving (PIR) Fund serves as a long-term funding source for large improvement expenditures. These funds can be used to finance infrastructure improvements for new developments if requested instead of bonding for them. Process Used The City has issued four bonds totaling $15.4 million thru 2008 in the PIR Fund for large capital projects. This fund has collected $19.12 million of special assessments over the past 15 years. The annual cash flow of this fund is intended to eliminate unfunded projects through effective management of debt payments and project expenditures. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover 63 Capital Projects Funds 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual 1 Adopted 1 1 Estimate Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 $ 235,423 $ 2,031 $ 2,031 $ Revenues Investment Income (1,731) - - Other Sources Transfers In Total Revenues and Other Sources: (1,731) - - Total Available: 233,692 2,031 2,031 Expenditures Capital Outlay 231,661 - - Other Uses Operating Transfers Out - 5,262 2,031 - Total Expenditures and Other Uses: 231,661 5,262 2,031 - Fund Balance, December 31 $ 2,031 $ (3,231) $ - $ - Change in Fund Balance $ (233,392) $ (5,262) $ (2,031) $ - -99% -259% -100% n/a Fund: 4901 64 Cost Center: 2010A G.O. Open Space Referendum Bonds Department Head: Finance Director Activity Type/Code: Capital Projects Exnenditure Highlights Over the past four years, four parcels have been purchased for the preservation of open space in the City of Andover. The remaining funds ($2,031) were transferred to the Open Space Referendum Bonds Debt Service Fund to assist in the debt payments in 2016. General Activity Description This fund is used to finance various land acquisitions for open space preservation within the City of Andover through the use of G.O. Open Space Referendum Bonds. Process Used An Open Space Advisory Commission has been created to establish both short and long term goals, in addition to, determining the criteria for which to acquire open space. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 65 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET ENTERPRISE FUNDS DEFINITION: 1 Governments establish enterprise funds to account for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. City of Andover Enterprise Funds 2017 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 6,225,766 $ 6,910,106 $ 6,910,106 $ 7,275,072 5,095,857 57,291 16,055 4,650 50,277 5,224,130 58,249 5,282,379 11,508,145 951,162 216,414 1,924,080 87,475 821,978 4,001,109 596,930 4,598,039 $ 6,910,106 Change in Unrestricted Net Assets $ 684,340 11% 4,982,202 56,000 13,000 3,500 16,000 67,000 5,137,702 85,096 5,222,798 12,132,904 1,000,820 289,200 2,192,448 833,101 4,315,569 596,930 4,912,499 $ 7,220,405 $ 310,299 4% 5,046,869 46,000 13,000 3,500 16,000 67,000 5,192,369 85,096 5,277,465 12,187,571 1,000,820 289,200 2,192,448 833,101 4,315,569 596,930 4,912,499 $ 7,275,072 $ 364,966 5% 5,119,626 46,000 13,000 16,000 67,000 5,261,626 54,228 5,315,854 12,590,926 1,033,288 308,200 2,272,623 260,000 828,751 4,702,862 596,930 5,299,792 $ 7,291,134 $ 16,062 0% Actual 1 Adopted Estimate 1 Adopted Description 2015 2016 2016 1 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 6,225,766 $ 6,910,106 $ 6,910,106 $ 7,275,072 5,095,857 57,291 16,055 4,650 50,277 5,224,130 58,249 5,282,379 11,508,145 951,162 216,414 1,924,080 87,475 821,978 4,001,109 596,930 4,598,039 $ 6,910,106 Change in Unrestricted Net Assets $ 684,340 11% 4,982,202 56,000 13,000 3,500 16,000 67,000 5,137,702 85,096 5,222,798 12,132,904 1,000,820 289,200 2,192,448 833,101 4,315,569 596,930 4,912,499 $ 7,220,405 $ 310,299 4% 5,046,869 46,000 13,000 3,500 16,000 67,000 5,192,369 85,096 5,277,465 12,187,571 1,000,820 289,200 2,192,448 833,101 4,315,569 596,930 4,912,499 $ 7,275,072 $ 364,966 5% 5,119,626 46,000 13,000 16,000 67,000 5,261,626 54,228 5,315,854 12,590,926 1,033,288 308,200 2,272,623 260,000 828,751 4,702,862 596,930 5,299,792 $ 7,291,134 $ 16,062 0% City of Andover Enterprise Funds Water Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 2,561,528 $ 3,040,230 $ 3,040,230 $ 3,314,427 2,524,089 25,353 16,055 4,650 48,509 2,618,656 58,249 2,676,905 5,238,433 421,575 179,464 622,073 2,863 821,978 2,047,953 150,250 2,198,203 $ 3,040,230 Change in Unrestricted Net Assets $ 478,702 19% 2,415,186 15,000 13,000 3,500 6,000 67,000 2,519,686 85,096 2,604,782 5,645,012 446,234 229,700 703,800 833,101 2,212,835 150,250 2,363,085 $ 3,281,927 $ 241,697 8% 2,447,686 15,000 13,000 3,500 6,000 67,000 2,552,186 85,096 2,637,282 5,677,512 446,234 229,700 703,800 833,101 2,212,835 150,250 2,363,085 $ 3,314,427 $ 274,197 9% 2,433,052 15,000 13,000 6,000 67,000 2,534,052 54,228 2,588,280 5,902,707 460,299 238,200 747,115 15,000 828,751 2,289,365 150,250 2,439,615 $ 3,463,092 $ 148,665 4% 67 Actual Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 2,561,528 $ 3,040,230 $ 3,040,230 $ 3,314,427 2,524,089 25,353 16,055 4,650 48,509 2,618,656 58,249 2,676,905 5,238,433 421,575 179,464 622,073 2,863 821,978 2,047,953 150,250 2,198,203 $ 3,040,230 Change in Unrestricted Net Assets $ 478,702 19% 2,415,186 15,000 13,000 3,500 6,000 67,000 2,519,686 85,096 2,604,782 5,645,012 446,234 229,700 703,800 833,101 2,212,835 150,250 2,363,085 $ 3,281,927 $ 241,697 8% 2,447,686 15,000 13,000 3,500 6,000 67,000 2,552,186 85,096 2,637,282 5,677,512 446,234 229,700 703,800 833,101 2,212,835 150,250 2,363,085 $ 3,314,427 $ 274,197 9% 2,433,052 15,000 13,000 6,000 67,000 2,534,052 54,228 2,588,280 5,902,707 460,299 238,200 747,115 15,000 828,751 2,289,365 150,250 2,439,615 $ 3,463,092 $ 148,665 4% 67 Fund: 5100 68 Cost Center: Water Department Head: Utility Supervisor Activity Type/Code: Enterprise Fund Expenditure Hiehliehts No major changes planned in 2017. General Activity Description Operate and maintain the City's water system including WTP, wells, towers and water mains. Provide a continuous, potable, bacteria free water supply at proper pressure levels. Maintain customer water meters and respond to other service requests. Maintain water distribution for fire protection system needs. Conform to all State and Federal monitoring rules, provide tours and information to the public. Process Used Operate wells and WTP in a manner that ensures a safe, clean and adequate water supply, that will meet peak daily demands and fire protection demands. Maintain wells, treatment facility, and related infrastructure. Operate and maintain chemical feed equipment. Collect, analyze and record water samples daily. Maintain, test and repair water meters. Respond to emergencies 24 hours a day. Work with contractors to locate watermains, locate and operate gate valves, monitor tests during final inspections. Check WTP, 8 wells, 7 days a week, 365 days per year. Flush all watermains in the spring every other year. Maintain all hydrants. Locate operate and clean gate valves to ensure proper operation. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues. Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 3,495,412 $ 3,618,050 $ 3,618,050 $ 3,668,547 2,129,201 30,934 2,160,135 2,160,135 5,655,547 316,472 19,756 1,172,840 81,749 1,590,817 2,142,281 40,000 10,000 2,192,281 2,192,281 5,810,331 337,491 31,300 1,316,313 1,685,104 2,142,281 30,000 10,000 2,182,281 2,182,281 5,800,331 337,491 31,300 1,316,313 1,685,104 2,215,411 30,000 10,000 2,255,411 2,255,411 5,923,958 349,622 36,800 1,348,612 245,000 1,980,034 Transfers Out 446,680 Actuai Adopted Estimate Adopted Description 20'5 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 3,495,412 $ 3,618,050 $ 3,618,050 $ 3,668,547 2,129,201 30,934 2,160,135 2,160,135 5,655,547 316,472 19,756 1,172,840 81,749 1,590,817 2,142,281 40,000 10,000 2,192,281 2,192,281 5,810,331 337,491 31,300 1,316,313 1,685,104 2,142,281 30,000 10,000 2,182,281 2,182,281 5,800,331 337,491 31,300 1,316,313 1,685,104 2,215,411 30,000 10,000 2,255,411 2,255,411 5,923,958 349,622 36,800 1,348,612 245,000 1,980,034 Transfers Out 446,680 446,680 446,680 446,680 Total Expenditures and Other Uses: 2,037,497 2,131,784 2,131,784 2,426,714 Unrestricted Net Assets, December 31 $ 3,618,050 $ 3,678,547 $ 3,668,547 $ 3,497,244 Change in Unrestricted Net Assets $ 122,638 $ 60,497 $ 50,497 $ (171,303) 4% 2% 1 % -5% Fund: 5200 Cost Center: Sanitary Sewer Activity Type/Code: Enterprise Fund Expenditure Highlights 70 In 2017, the Metropolitan Waste Water Charge to Metropolitan Council increased 3% ($33,761). 2015 included the purchase of new televising equipment. 2017 includes the purchase of a new vac truck split with the Sanitary Sewer Trunk Capital Projects Fund. Department Head: Utility Supervisor General Activity Desciption City sewage is collected through a pipe and lift station network to large Metro City Sewer interceptor pipes that carry it to the Metro Treatment Plant for processing. The sewer division inspects, cleans, and maintains the City's collection system which includes breaks in pipes, manholes, and lift stations. Sewer backups caused by blockage due to debris or breaks in pipe are cleaned and/or repaired immediately. This department maintains the integrity of the entire sanitary sewer system. Process Used Inspect all lift stations five days per week. Clean one-quarter of the City's sewer collection system via jetting and vacuuming each year. City has implemented a televising program of the collection system that analyzes the entire system over a five year period. A spot check program checks flows in problem areas. Start III program to monitor inflow and infiltration Into sewer system. Clean known problem area once per month. Monitor inspection and testing of all new sewer lines and manholes before accepting from contractor. Respond to and record all requests from customers, respond to emergencies 24 hours a day. Contract out all major system repairs. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 168,826 $ 251,826 $ 251,826 $ 292,098 442,567 1,004 1,768 445,339 424,735 1,000 425,735 456,902 1,000 457,902 471,163 1,000 472,163 445,339 Actual Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 168,826 $ 251,826 $ 251,826 $ 292,098 442,567 1,004 1,768 445,339 424,735 1,000 425,735 456,902 1,000 457,902 471,163 1,000 472,163 445,339 425,735 457,902 $ 330,798 472,163 $ 8,105 614,165 677,561 709,728 764,261 16% 213,115 217,095 217,095 223,367 17,194 28,200 28,200 33,200 129,167 172,335 172,335 176,896 2,863 - - - 362,339 417,630 417,630 433,463 362,339 417,630 417,630 433,463 Unrestricted Net Assets, December 31 $ 251,826 $ 259,931 $ 292,098 $ 330,798 Change in Unrestricted Net Assets $ 83,000 $ 8,105 $ 40,272 $ 38,700 49% 3% 16% 13% 71 Fund: 5300 72 Cost Center: Storm Sewer Department Head: Utility Supervisor Activity Type/Code: Enterprise Fund Expenditure Hiehliehts No major changes planned in 2017. General Activity Description Maintenance of all storm sewers, catch basins, manholes, pipes, ditches, and sediment ponds. Process Used The ditches are cleaned with a backhoe for better drainage and to avoid the ponding of stagnant water. This dirt is hauled away or dumped in low places on ditch banks. When it is dumped on site, it becomes necessary to level and grade the banks to facilitate proper mowing. All catch basins and pipes are cleaned with a vac truck. The material is then hauled away for proper disposal. Occasional use of outside contractors to maintain parts of the system. Televising a portion of the system each year to help comply with new federal regulations. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 73 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET INTERNAL SERVICE FUNDS DEFINITION: Internal Service Funds are used to account for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. City of Andover Internal Service Funds 2017 Budget Summary - All Internal Service Funds Statement of Revenues. Expenditures and Changes in Unrestricted Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 613,684 $ 744,804 $ 744,804 $ 690,401 1,112,578 7,493 97.856 1.217.927 1,217,927 1,831,611 421,664 297,248 367,895 1,086,807 1,086,807 $ 744,804 1,111,844 1,500 1,113,344 1,113,344 1,858,148 419,835 388,010 360,122 1,167,967 1,167,967 $ 690,181 1,119,764 3,800 1,123,564 1,123,564 1,868,368 419,835 388,010 370,122 1,177,967 1,177,967 $ 690,401 1,158,507 3,000 1,161,507 1,161,507 1,851,908 443,362 404,160 360,672 1,208,194 1,208,194 $ 643,714 Change in Unrestricted Net Assets $ 131,120 $ (54,623) $ (54,403) $ (46,687) 21% -7% -7% -7% 74 Actual Adopted 1 Estimate Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 613,684 $ 744,804 $ 744,804 $ 690,401 1,112,578 7,493 97.856 1.217.927 1,217,927 1,831,611 421,664 297,248 367,895 1,086,807 1,086,807 $ 744,804 1,111,844 1,500 1,113,344 1,113,344 1,858,148 419,835 388,010 360,122 1,167,967 1,167,967 $ 690,181 1,119,764 3,800 1,123,564 1,123,564 1,868,368 419,835 388,010 370,122 1,177,967 1,177,967 $ 690,401 1,158,507 3,000 1,161,507 1,161,507 1,851,908 443,362 404,160 360,672 1,208,194 1,208,194 $ 643,714 Change in Unrestricted Net Assets $ 131,120 $ (54,623) $ (54,403) $ (46,687) 21% -7% -7% -7% 74 City of Andover Internal Service Funds Central Equipment Maintenance Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 322,692 $ 412,179 $ 412,179 $ 396,681 720,592 4,849 910 726,351 726,351 1,049,043 253,142 275,674 108,048 636,864 636,864 $ 412,179 $ 89,487 28% 720,592 500 721,092 721,092 1,133,271 256,658 360,960 121,272 738,890 738,890 $ 394,381 $ (17,798) -4% 720,592 2,800 723,392 723,392 1,135,571 256,658 360,960 121,272 738,890 738,890 $ 396,681 $ (15,498) -4% 698,974 2,000 700,974 700,974 1,097,655 279,543 376,360 121,822 777,725 777,725 $ 319,930 $ (76,751) -19% 75 Actual Adopted 1 Estimate 1 Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 322,692 $ 412,179 $ 412,179 $ 396,681 720,592 4,849 910 726,351 726,351 1,049,043 253,142 275,674 108,048 636,864 636,864 $ 412,179 $ 89,487 28% 720,592 500 721,092 721,092 1,133,271 256,658 360,960 121,272 738,890 738,890 $ 394,381 $ (17,798) -4% 720,592 2,800 723,392 723,392 1,135,571 256,658 360,960 121,272 738,890 738,890 $ 396,681 $ (15,498) -4% 698,974 2,000 700,974 700,974 1,097,655 279,543 376,360 121,822 777,725 777,725 $ 319,930 $ (76,751) -19% 75 Fund: 6100 Cost Center: Central Equipment Activity Type/Code: Internal Service Fund Expenditure Highlights No major changes planned for 2017. 76 Department Head: Vehicle Maintenance Supervisor General Activity Description Maintains and repairs all City motorized and non -motorized vehicles and equipment to provide safe operation. Evaluates equipment needs, orders equipment/vehicles and writes specifications. The department maintains nearly 500 pieces of equipment, in addition to normal preventative maintenance procedures of tires, brakes, electrical, fabricating and body work. All work; except automatic transmission overhauls, major engine and major body work are done at the Public Works garage. Staff inspects garbage trucks as part of their licensure process, and performs commercial vehicle inspections required on all applicable City vehicles. Process Used City equipment is scheduled for normal service by miles driven or hours/days of service. Most work is done based on a first -in -first -out with the exception of that emergency repairs are done in the order of importance. Emergency equipment are fire vehicles and snow plow equipment, streets, utilities, and parks. Non -emergency equipment are the Building and Engineering departments, Planning and Zoning department and all other city equipment. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Internal Service Funds Risk Management Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets 1 Actual 1 Adopted Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 290,992 $ 332,625 $ 332,625 $ 293,720 391,986 2,644 96,946 491,576 491,576 782,568 168,522 21,574 259,847 449,943 449,943 $ 332,625 $ 41,633 14% 391,252 399,172 459,533 1,000 1,000 1,000 392,252 400,172 460,533 392,252 724,877 163,177 27,050 238,850 429,077 429,077 $ 295,800 $ (36,825) -11% 400,172 732,797 163,177 27,050 248,850 439,077 439,077 $ 293,720 $ (38,905) -12% 460,533 754,253 163,819 27,800 238,850 430,469 430,469 $ 323,784 $ 30,064 10% 77 Fund: 6200 78 Cost Center: Risk Management Department Head: Finance Director Activity Type/Code: Internal Service Fund Expenditure Highlights No major changes planned for 2017. General Activity Desciption The Risk Management Fund was established to provide funding for compensated absences, safety, training, loss reduction and insurance premium deductibles. Social security and Medicare tax savings resulting from participation in the "cafeteria plan" are recorded in this fund on an annual basis. This fund also functions to mitigate significant rate increases or decreases. Departmental rates are managed by analyzing claims history. Process Used The City Administrator / Finance Director along with the Human Resources Manager promote various safety and wellness programs with the funding received. One of the most notable products is the wellness fitness room. Safety training is provided both in-house and by contracting for service. The city works through a broker and is provided insurance for general liability, automotive and workers' compensation through the League of MN Cities Insurance Trust. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.CI.ANDOVER. MN. US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2017 Budget Development Discussion DATE: September 27, 2016 INTRODUCTION 0 City Administration/Finance alone with the Department Heads continue to work on the 2017 Annual Operating Budget Development process and are looking to update the City Council on progress and seek direction as the preparation of the 2017 Annual Operating Budget continues to proceed. On September 6th the City Council approved the 2017 Preliminary Levy certification. This approval was the outcome of the numerous budget workshops held by the Council over the summer. The Preliminary 2017 Budget proposes a total 2017 property tax levy of $11,938,555: $8,344,354 (69.89%) operational levy, $1,610,047 (13.49%) debt service levy, and $1,984,154 (16.62%) capital/watershed levy. The 2017 Proposed Property Tax Levy that was approved estimates reducing the current City tax rate by close to 2% but does generate additional tax revenue through growth identified in the City's tax base, this capture yield a 2.97% increase in the gross tax levy. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2016. DISCUSSION The following are the 2017 Budget Development guidelines were adopted at the April 19`h City Council meeting: 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness through the use of sustainable revenue sources and operational efficiencies. Note: Preliminary Anoka County Assessor taxable market value figures for the City of Andover are reflecting a 4.23% increase in total taxable market value. There will be adjustments to the valuations un until the end of the year, the most substantive change will be in response to the TIFDistrict 1-3 & 1-4 decertification. 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2017 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management & information technology) through targeting revenue enhancements or expenditure limitations in the 2016 adopted General Fund budget. Note: With property tax revenues making up close to 80% of the total General Fund revenues cash flow designations approaching 50% would be appropriate and are recommended by the City's auditor. Emergency Fund Balances (approximately 3% of planned General Fund expenditures) are in place to stabilize a situation, not be a complete solution. 3) A commitment to limit the 2017 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The adopted 2016 debt levy was 18.12% of the gross tax levy, the 25% guideline for 2017 will be met easily as $500,000 of existing debt levy was moved to a Capital Levy for 2017 to fund planned equipment purchases. This change will decrease the proposed 2017 debt levy to only 13.49% of the gross tax levy. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year based replacement schedule. Note: The City Vehicle Purchasing Committee has completed this analysis, and has made recommendations to the City Council as part of the 2017-2021 Capital Improvement Plan (CIP) developmentprocess. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Note: The City continually maintains various financial models to determine the long-term impacts of present day expenditures and financing decisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending and debt ratios. 6) Continued commitment to strategic planning targeted toward meeting immediate and long- term operational, staffing, infrastructure and facility needs. Note: A strategic planning session was held with the City Council in 2015, with a final Council Community Vision and Organizational Goals and Values document approved by the City Council. Direction provided in that document is integrated into various department work plans and budgets. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns, and demands, and to do so in a cost effective manner. Note: Management will pay special attention to fiscal values, commercial & residential development or redevelopment, collaboration opportunities, service delivery and the livability/image of the community. Staffing: Requests were made for a new Public Works Maintenance Worker for the Streets Department and by the Fire Department to consider an expansion of hours of the Fire Department Duty Crew. Administration is recommending both requests and they are both included in the 2017 Proposed Budget. Also there are some anticipated retirements and staff vacancies within the next few years; in response Administration has made a concerted effort to focus on appropriate succession planning effective utilization of internship opportunities in various departments and continued cross -training of City staff. Personnel Related Implications: To date the following are projected issues facing personnel related expenses: 1. Human Resources has reviewed position -based salaries and our benefit package in detail to determine if the total package is competitive with other government entities. Administration will include a budget for market adjustments for a few positions. Pay steps for eligible employees are included in the 2017 budget proposal. A cost of living adjustment (COLA) for non -bargaining employee, similar to the Public Works Union contract not set to expire until December 31, 2017, is also included in the 2017 budget proposal 2. A review of the health plan was conducted with our broker in September. The current employee health & dental plan provider is with HealthPartners, and while we have a second year rate increase guarantee max, Administration still authorized a marketing of the plan in an effort to bring the rates in under the rate increase guarantee max. Administration will review progress to date with the Council at the workshop meeting. The City currently offers the employees a high deductible plan ($5,000 family, $2,500 single for in network expenses) with a health spending account (HSA). As part of the program, the City pays for 100% of the single health insurance premium and 76% for a family health insurance premium. The City does contribute annually to the employees HSA. Contractual Departments: 1. The City Attorney 2016 contract included a 2.5% increase over the 2015 rate. Discussion for the 2017 contract is, if City employees are granted a COLA, the legal service contract would be treated the same. 2. The City of Andover has a Law Enforcement Contract with the Anoka County Sheriff's Office. The 2016 budget for the contract is $2,936,467 and is offset by a Police State Aid of $124,800 and School Liaison revenue of $91,820 reflecting a net tax levy impact of $2,719,847. The 2016 Sheriff's contract provides for: a. 80 hours per day of patrol service b. 6 hours per day of service provided by a Community Service Officer c. School Liaison Officers in the middle school and high school d. 2 Patrol Investigators e. 50% of the Crime Watch Program's coordinator position. It should be noted that the Sheriffs Department always provides the required number of deputies for all hours contracted by the City. If the Sheriffs Department has a vacancy or a deputy is injured etc.., they still provide the City with a deputy at straight time even though they may have to fill those hours with overtime which at times may cost the Sheriff s Department additional, but is not billable per the contract The 2016 contract maintained status quo service when compared to 2015, but significant attention was done relative to equipment purchasing and maintenance. The 2016 contract reflected a 0.62% increase ($18,159) over the 2015 contract. Staff has had discussions with the Anoka County Sheriff for a 2017 contract, and the Anoka County Sheriff was before the City Council at the May 24th workshop meeting. Direction from that workshop and subsequent workshops was for Administration to work with the Sheriff on a Status Quo Contract. Negotiations for a Status Quo Contract for 2017 reflect a 0.71% increase ($19,844) over the 2016 contract. of the Council Memberships and Donations/Contributions: The following memberships/contributions are included in the 2016 Budget, updated for 2017: • North Metro Mayors Association $15,010 • Metro Cities $ 9,512 ■ Mediation Services $ 3,366 • YMCA — Water Safety Program $ 8,500 • Alexandra House $18,328 ■ Youth First (Program Funding) $12,000 ■ NW Anoka Co. Community Consortium - JPA $10,000 ■ Teen Center Funding (YMCA) $24,500 • Family of Promise $ 3,000 • Lee Carlson Central Center for Family Resources $ 1,500 ■ Senior High Parties $ 1,000 • Stepping Stone $ 600 Capital Projects Levy: Capital Projects Levy — The 2016 Capital Projects Levy Budget specifically designates $1,415,984 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($250,000), Road and Bridge ($1,089,146), Pedestrian Trail Maintenance ($61,838) and Park Projects ($15,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is evaluated annually and along with Capital Outlay, Pedestrian Trail Maintenance and Park Levies increased/decreased according to the City Council budget guidelines. Looking to 2017, Administration/Finance has recommendations identified below. For the 2017 equipment purchases Administration/Finance is proposing a straight Capital Levy for the 2017 equipment purchases rather than through debt service levy and an equipment bond. • Road and Bridge An adjustment was made to the Road & Bridge funding formula in 2014, primarily to stop the continual decrease in the levy that has been happening over the past few years due to decreases in the Anoka County Assessor taxable market value figures for the City of Andover. Based on Council discussion, consensus was to stop the decline in road funding and evaluate annually through the adopted City Council Budget Development Guidelines. It should be noted that in 2014, Local Government Aid (LGA) in the amount of $74,655 was used to help fund the Road & Bridge Fund. That State of Minnesota funding has largely gone away (down to $2,706) for 2016. For 2017. Administration was notified by State that the City will receive "NO" LGA. For 2016, the levy to Road & Bridge is $1,089,146 a 9.39% increase over 2015, recognizing the significant 2015 taxable market value increase and lost LGA. Administration will be proposing a 2.47% increase in the Road & Bridge levy for 2017, The 2016 levy to pedestrian trail maintenance is $61,838, that was a 6.1% increase over 2015. Administration will be proposing a 2.0% increase in the Pedestrian Trail Maintenance levy for 2017 • Park Improvements This levy is an annual appropriation to be used to underwrite park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is intended to be a supplemental source of capital funding for park projects that is separately identified in the City's Five -Year Capital Improvement Plan. The 2015 levy was $61,500, but only $15,000 was levied for 2016. $46,500 of the Previous levy was re -assigned to the General Fund to focus on Park's maintenance/replacement items. In addition to the re -assigned funds an additional $43,500 of General Fund levy was be assigned to Parks Repair/Replacement items for a total levy of $90,000 in 2016. History of the supplemental Park Improvement Funding_ In 2002, City Council committed $50,000 in tax levy to underwrite park improvement projects as recommended by the Park and Recreation Commission and approved by City Council. That levy was intended to be a supplemental source of capital funding for park projects as development started to slow down and minimal park dedication funds were available. As of 2015, that levy was up to $61,500 of which $15,000 was designated towards miscellaneous items that come up throughout the year. New direction of the Funding in 2016: With an emphasis on maintaining/preserving parks the City currently has, through the 2016 Budget / Levy process, the City Council re -assigned $46,500 of the Park Improvement Levy to the General Fund to focus on Park's maintenance/replacement items. A residual $15,000 of levy remained to the Park Improvement Fund to take care of miscellaneous items that come up throughout the year that the Park and Recreation Commission will continue to participate in. A $90,000 tax levy ($46,500 combined with an additional $43,500 of General Fund levy funding) is now identified as part of the General Fund levy to replace playground equipment, fences, pedestrian bridges in parks, parking lot reconstruction, etc. The Parks Maintenance Department will determine which replacement items have the highest priority through the Capital Improvement Plan (CIP). Any unused funds in M given year will be specifically designated or carried forward for future park replacement items. If a park is to be reconstructed as recommended by the Park and Recreation Commission and approved by City Council through the CIP process, the Park and Recreation Commission will work with the Parks Maintenance Department to determine which items are replacements and which items are considered new and/or enhancements to determine the mix of funding sources to accomplish the project. • Equipment/Projects Under the Capital Projects Levy, a levy is proposed to be designated to capital improvement/equipment project expenditures identified through the CIP process. Through this designation, the City, over time, will build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. The 2016 levy is $250,000, Administration will be recommending the same for 2017. Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense savings to the City. (Staff, along with Ehlers & Associates have completed a review and no new refinancing opportunities are available at this time: we continue to monitor as we believe a Water Revenue bond will be eligible for refinancing in early 2017). The proposed 2017 Debt Service levy is as follows: • 2010A G.O. Open Space Referendum $ 187,840 • 2012C Taxable G.O. Abatement Bonds $ 974,418 • 2014A G.O. Equipment Certificates $ 295,260 2016A G.O. Equipment Certificates $ 152,529 Proposed New Bond Issuance $ 500,000 (Moved to a Capital Levy) Total $2,110,047 $1,610,047 It should be noted that the levy is offset significantly by a $635,000 YMCA annual rental payment for the Community Center bonds (2012C Taxable G.O. Abatement Bonds). The proposed 2017 Debt Service levy reflects a 23.35% decrease ($490,366) as the City proposed to do a straight Capital Levy for the 2017 equipment purchases rather than an equipment bond. ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. CITY OF ANDOVER Pay 2017 Valuation Estimates Taxable Market Value Pay 2014 $ 2,071,812,281 Pay 2015 $ 2,435,770,612 17.57% Pay 2016 $ 2,539,686,867 4.27% Pay 2017 $ 2,647,133,414 4.23% Taxable Market Values $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 Pay 2014 Pay 2015 Pay 2016 Pay 2017 Tax Capacity Value % Change Pay 2014 $ 21,978,322 Pay 2015 $ 25,705,350 16.96% Pay 2016 $ 26,847,273 4.44% Pay 2017 $ 28,052,152 4.49% Tax Capacity Values $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Pay 2014 Pay 2015 Pay 2016 Pay 2017 Pay 2014 Pay 2015 Pay 2016 Pay 2017 - Est Taxable Tax Taxable Tax Taxable Tax Taxable Tax Market Capacity Market Capacity Market Capacity Market Capacity Value Value Value Value Value Value Value Value Andover Valuation Totals $ 2,071,812,281 $ 21,978,322 $ 2,435,770,612 $ 25,705,350 $ 2,539,686,867 $ 26,847,273 $ 2,647,133,414 $ 28,052,152 Captured Tax Increment (327,433) (210,936) (248,327) (290,000) Fiscal Disparity Contribution (1,035,107) (998,390) (1,055,284) (1,124,214) Local Tax Rate Value 20,615,782 24,496,024 25,543,662 26,637,938 Fiscal Disparity Distribution 4,202,605 4,257,801 4,264,789 4,516,466 Total Adjusted Values $ 24,818,387 $ 28,753,825 $ 29,808,451 $ 31,154,404 15.86% 3.67% 4.52% Taxable Market Value Pay 2014 $ 2,071,812,281 Pay 2015 $ 2,435,770,612 17.57% Pay 2016 $ 2,539,686,867 4.27% Pay 2017 $ 2,647,133,414 4.23% Taxable Market Values $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 Pay 2014 Pay 2015 Pay 2016 Pay 2017 Tax Capacity Value % Change Pay 2014 $ 21,978,322 Pay 2015 $ 25,705,350 16.96% Pay 2016 $ 26,847,273 4.44% Pay 2017 $ 28,052,152 4.49% Tax Capacity Values $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Pay 2014 Pay 2015 Pay 2016 Pay 2017 City of Andover, Minnesota Property Tax Levy Other Levies Capital Projects Levy Capital EquipmentlProject 210,000 210,000 210,000 250,000 250,000 Preliminary 209% S 0.00% Capital Equipment Purchases Certified Certified Certified Certified Certified Requested 4.19% $ Change #DIV/01 Parks Projects 2012 2013 2014 2015 2016 2017 %of Total $ $ % General Fund Lew 1,022,817 967,197 967,197 967,197 1,089,146 1,116,079 9.35% $ 26,933 2.47% General Operations $ 7,332,857 S 7332,857 $ 7,435,891 $ 7,630,892 $ 7,947,528 $ 8,254,354 69.14% S 306,826 3.86% Parks Repair/Replacement Items 40,000 40,000 40,000 40,000 90,000 90,000 075% $ - 0.00% Total General Fund 7,332,857 7,332,857 7,435,891 7,630,892 8,037,528 6,344,354 69.69% $ 306,826 3.62% Debt Service Funds Lew Gross City Levy 10,631,299 10,631,299 2004A G.O. Capital Improvement Bonds 405,292 381,290 - - - - 2.97% Less Fiscal Disparities Distribution 1,791,496 1,798,577 2004 EDA Public Facility Revenue Bonds 1,092,684 452,082 181,803 - - - Local Tax Rate Levy $ 8,838,803 $ 8,832,722 2010A G.O. Open Space Referendum Bonds 182,558 184,973 187.283 184,238 1B6,291 187,840 2011A G.O. Equipment Certificate 102,017 101,745 - - - - $ 188,291 $ 18],840 2012AG.O.Equipment CeRficate 125,000 125,000 140,000 140,000 142,885 - Net Local Tax Rata Lary $ 8,657,245 2012B G.O. Cap Improv Refunding Bonds - 138,339 561,015 540,120 498,435 - Adjusted Tax Capacity Value" 20,514,674 2012CTaxable G.O.Abatement Bonds - 578945 740,965 975,652 977,332 974,418 2014A G.O. Equipment Cenifirate - - 260,000 296,055 295,470 295,260 2016A G.O. Equipment Cerlfcate - - - 152,529 Change Rang Total Debt Service 1907,551 1,961,474 2,071,066 2,136,065 2,100,413 1,610,047 13.49°% $ (490,366) -23.35% Other Levies Capital Projects Levy Capital EquipmentlProject 210,000 210,000 210,000 250,000 250,000 250,000 209% S 0.00% Capital Equipment Purchases - - - - - 500,000 4.19% $ 500,000 #DIV/01 Parks Projects 61.500 61,500 61,500 61,500 15,000 15,000 0.13% $ - 000% Road B Bridge 1,022,817 967,197 967,197 967,197 1,089,146 1,116,079 9.35% $ 26,933 2.47% Pedestrian Trail Maintenance 56,574 58,271 58,271 58,271 61,838 63,075 053% $ 1.237 2.00% Lower Rum River Watershed 40,000 40,000 40,000 40,000 40,000 40,000 0.34 % $ 000% Total Other 1.390,891 1,336,968 1,336,968 1,376,968 1,455,994 1,984,154 16.62% $ 528,170 36.28% Gross City Levy 10,631,299 10,631,299 10,843,925 11,143,925 11,693,925 11,938,555 100% $ 344,630 2.97% Less Fiscal Disparities Distribution 1,791,496 1,798,577 1,718,153 1,846,295 1,586,747 1,730,439 Local Tax Rate Levy $ 8,838,803 $ 8,832,722 $ 9,125,772 S 9,297,630 $ 10,007,178 $ 10,208,116 Less Levy Based on Market Value $ 182,558 E 184,973) § 187,283 $ 184,238 $ 188,291 $ 18],840 Net Local Tax Rata Lary $ 8,657,245 $ 8,647,749 $ 8,938,489 $ 9,113,392 $ 9,820,887 $ 10,020,276 Adjusted Tax Capacity Value" 20,514,674 21,155,263 20,615,782 24,496,024 25,543,862 26,637,938 4.28% Change Rang Tax Capacity Rate' 42.200% 40.878% 43.358% 37.204% 38.447% 37617% .0.831% -2.161% Tax Capacity Rate W/O LRRWSD MAW % 42090% 43.197% 37.070% 38.314% Tax Capacity Rata With LRRWSD 38.746% 42.539% 43.657% 37.461% 38.702% Voter Approved Ref - MV 0,00568% 0.00778% 0.00S41% 0.00719% 0.00699 % "Adjusted Value determined by adjusting for Fiscal Disparities and Tax Increment estimates. -Blended rate due to the City of Andover levying for Lower Rum River Watershed District (1) Adjusted Tax Capacity Value is subject to change. City of Andover General Fund 2016 Fund Balance Analysis Requested Actual December 31, 2015 $ 7,267,904 2016 Estimated Fund Balance Increase (Decrease) (481,791) Projected December 31, 2016 6,786,113 Less: Snow Emergency (80,000) Public Safety (80,000) Facility Management (80,000) Information Technology (80,000) 2017 Budgeted Use of Fund Balance (277,499) Economic Development (300,000) Prepaids / Inventories (131,813) Working Cash Flow (5,494,151) Estimated Balance Available for Adjustments $ 262,650 2016 Working Cash Flow Designation Calculation: 2017 Requested Expenditure - Preliminary Estimate $10,988,302 % of 2017 General Fund Expenditures 50.000% $ 5,494,151 A C I T Y • FNND0VE01 C(c) 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: August 2016 General Fund Budget Progress Report DATE: September 27, 2016 INTRODUCTION The City of Andover 2016 General Fund Budget contains total revenues of $10,390,411 and total expenditures of $11,003,788 (includes $56,000 of 2015 budget carry forwards primarily for elections and facility management and a Council approved $250,000 transfer to the Trail Fund ); a decrease in fund balance is planned. Monthly reporting of the City Budget progress to the Governing body is a recommended financial practice and often viewed positively by rating agencies. DISCUSSION Attached is the General Fund Revenue & Expenditure Budget Summary - Budget Year 2016 reflecting year to date actual through August 2016. The attachment provided is to assist discussion in reviewing 2016 progress; other documents may be distributed at the meeting. The following represents Administration's directives and departmental expectations that are in place again for 2016: 1. Expenditure budgets while approved, expenses are to meet with the spirit that needs are fulfilled first, expansions of service and special requests are to be reviewed with City Administration before proceeding. 2. Departments are to be committed to search for the best possible prices when purchasing goods and services. 3. Departments are to be committed to continually searching out new efficiencies and to challenge the status quo of how the City provides services. 4. Departments are to be committed to searching out collaborative opportunities to facilitate efficient and cost-effective utilization of governmental assets and personnel. 5. Departments are to be committed to developing effective, consistent and ongoing communications with City residents, businesses and other stakeholders. 6. Departments are to be cognizant that services provided are subject to available revenues and should not commit to services that are not sustainable. ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. ectfully submitted, Ji Dickinson Attachment REVENUES General Property Tax CITY OF ANDOVER General Fund Budget Summary Totals Budget \'ear 2016 2015 1 2016 Budget Aug YTD %Bud YE Budget Aug YTD %Bud S 7,706,892 S 3,985,563 52% S 7,634,714 $ 8,113,528 S 4,226,438 52% Intergovernmental 633,015 347,366 55% 749,570 673,248 362,789 54% Charges for Services 748,550 550,586 74% 804,228 767,950 572,284 75% Fines 100,750 64,859 64% 99,304 100,750 59,000 59% Investment Income 75,000 4,891 7% 63,709 75,000 7,922 11% Miscellaneous 98,850 117,013 118% 154,890 116,800 116,036 99% Transfers In 196,930 196,930 100% 196,930 196,930 196,930 100% Total Revenues S 9876,575 $ 5567 75 56% S 10,155,767 S 10,390,411 S 5,931,845 57% Elections 57492 11,804 _ 21%14496 �-y � , , Y. 82,919 _ _43_093 -_`_- y 52% - Finance 239,981 2015 71% 240,317 261,016 2016 69% EXPENDITURES Budget Aug YTD %Bud YE -Unaudited Budget Aug YTD %Bud GENERAL GOVERNMENT S 10,364,730 $ 6,735,281 65% S 10,089,997 $ Mayor and Council S 87,154 $ 66,760 77% S 85,061 $ 88,780 S 66,701 75% Administration 180,888 113,224 63% 172,296 192,778 123,990 64% Newsletter 26,000 17,390 67% 21,042 26,000 17,429 67% Human Resources 40,156 12,794 32% 15,909 35,260 12,915 37% Attorney 182,000 109,468 60% 180,313 187,640 107,736 57% City Clerk 135,359 96,700 71% 134,776 157,075 99,531 63% Elections 57492 11,804 _ 21%14496 �-y � , , Y. 82,919 _ _43_093 -_`_- y 52% - Finance 239,981 170,959 71% 240,317 261,016 179,9856 69% Assessing 150,000 143,431 96% 146,315 150,000 143,883 96% Information Services 172,239 93,041 54% 131,745 173,483 98,213 57% Planning & Zoning 412,937 265,281 64% 406,045 435,606 277,832 64% Engineering 470,631 310,851 66% 464,842 509,514 339,938 67% Facility Management 579,802 290,764 50% 498,813 568,201 274,963 48% Total General Gov 2,734,639 1,702,467 62% 2,511,970 2,866 272 1,786,209 62 PUBLICSAPETY S 10,364,730 $ 6,735,281 65% S 10,089,997 $ Police Protection 2,918,308 2,188,731 75% 2,918,308 2,936,467 2,202,350 75% Fire Protection 1,192,330 659,211 55% L165,221 1_94,795 729,735 56% Protective Inspection 423,161 253,240 60% 391,948 441,807 274,471 62% Civil Defense 39,189 21,817 56% 24,352 22,982 13,359 58% Animal Control 9,950 2,255 23% 3,498 7,950 1,988 25% PUBLIC WORKS S 10,364,730 $ 6,735,281 65% S 10,089,997 $ 11,003,788 Streets and Highways 625,664 439,943 70% 629,724 656,237 497,530 76% Snow and Ice Removal 539,770 304,262 56% 442,077 563,587 332,235 59% (1,167,906) Street Signs 203,533 132,733 65% 204,494 - 204,193 � 1.06,728 52% _ y Traffic Signals 35,000 17,337 50% 30,169 35,000 14,590 42% Street Lighting 36,400 17,912 49% 30,664 36,400 22,280 61% Street Lights - Billed 216,000 116,120 54% 201,501 217,500 117,431 54% Park & Recreation 1,185,338 758,218 64% 1,151,313 1257,247 817,967 65% Natural Resource Preservation - - 0% - 10,096 50 0% Recycling 135,120 89,342 63% 128,038 130,927 71,133 54% Total Public Works 2,976,825 1,875,867 63% 2,817,980 3,111,187 1,979,944 64 OTHER 90% Youth Services 38,600 16,000 41% Total Expendihres S 10,364,730 $ 6,735,281 65% S 10,089,997 $ 11,003,788 S 7,266,663 66% NET INCREASE (DECREASE) 5 (488,155) S (1,167,906) S 65,770 $ (613,377) S (1,334,818) 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Councilmembers Jim Dickinson, City Administrator August 2016 City Investments Review September 27, 2016 INTRODUCTION Summary reporting of the City Investment portfolio to the Governing body is a recommended financial practice and often viewed positively by rating agencies. Furthermore, the City of Andover Investment Policy recommends the Finance Director presents to the City Council at least quarterly the type of investments held by the City. DISCUSSION Attached is the Investment Maturities Summary for August 2016, the August 2016 Investment Detail Report, and the August 2016 Money Market Funds Report. These attachments are intended to assist with discussion when reviewing the August 2016 investments. ACTION REQUESTED Informational. The Council is requested to review and provide feedback to staff. Investment Maturities - August 2016 Investment Maturities in Years) Credit Fair Less Than More Than Investment Type Rating Value 1 1- 5 6- 10 10 Money market funds N/A $ 2,256,840 $ 2,256,840 $ - $ - $ - MN Municipal Money Market Fund (4M) N/A 4,998 4,998 - - - Premier Banks Money Market Fund N/A 260,595 260,595 - - - Certificates of deposit FDIC 12,176,174 7,619,439 4,556,735 - - Local governments A/Al/A2 1,077,908 376,235 534,746 62,644 104,283 AAI/AA2/AA3 7,952,505 1,579,467 4,545,209 1,286,142 541,687 AAA 3,311,496 409,749 2,368,316 533,431 - - State governments A/Al/A2 - - - - AAI/AA2/AA3 2,932,187 1,134,799 1,571,140 226,248 AAA 402,079 202,700 199,379 - U.S. agencies AAA 3,719,858 630,930 2,958,167 - 130,761 FNMA REMIC N/A 4,714 - 4,714 - - U.S. agencies N/A 1,456,144 - 1,456,144 - - Totalinvestments $ 35,555,498 $ 14,475,752 $ 18,194,549 $ 2,108,466 $ 776,731 Deposits 2,025,445 Total cash and investments $ 37,580,942 August 2016 Investment Detail Description Cusip Number Credit RatinglF DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Date Acquired Coupon Date MaturityI Due Date Synovus Bank GA 87164DFL9 873 CD 248,000.00 245,000.00 245,000.00 248,000.00 248,000.00 0.800% 248,000.00 245,046.55 245,039.20 245,000.00 244,997.55 245,012.25 semi-annual 09/10/14 03/04/15 09/06/16 Mountainone Bank 62452AAT7 90253 CD CD 245,000.00 245,000.00 0.600% maturity 01/28/16 none 09/28/16 Mizuho Bank USA 60688MSH8 21843 245,000.00 245,000.00 0.700% maturity 01/20/16 none 10/20/16 Bank of Bridger NA 06424WGH1 2224 CD 245,000.00 245,000.00 245,000.00 0.600% 0.500% 0.450% maturity 08/11116 none 11/10/16 Fortis Private Bank 3495FTAE9 34401 CD 245,000.00 245,000.00 245,000.00 maturity 08/12/16 none 11/14/16 Banc of Calif NA Irvine 05961SGX6 35498 CD 245,000.00 245,000.00 245,000.00 maturity 07/15/16 none 12/15/16 TCF National Bank 872278RE8 28330 CD 248,000.00 248,000.00 248,000.00 0.700% 248,066.96 maturity 12116/15 none 12/16/16 Wax Bank 92937CDJ4 34697 CD 248,000.00 248,000.00 248,000.00 0.750% 248,071.92 maturity 12116115 none 12/16/16 1 Year CD- Premier Bank Rochester 2055214401 33202 CD 245,000.00 245,000.00 245,000.00 0.600% 245,000.00 maturity 12116/15 none 12/16/16 11 Year CID -Premier Bank MN 3041574901 33204 CD 245,000.00 245,000.00 245,000.00 0.600% 245,000.00 maturity 12/16/15 none 12/16/16 1 Year CD- Premier Bank 1091003210 21714 CD 250,000.00 250,000.00 250,000.00 0.600% 250,000.00 maturity 12/16/15 none 12/16/16 Community First Bk 20368VAH8 7953 CD 245,000.00 245,000.00 245,000.00 0.550% 245,026.95 maturity 06/17/16 none 12/19/16 First Niagara Bk Nat Assn 33583CVP1 16004 CD 245,000.00 245,000.00 245,000.00 0.550% 245,026.95 maturity 06/17/16 none 12/19/16 Cardinal Bank NA 14147VGB6 34733 CD 245,000.00 245,000.00 245,000.00 0.500% 245,039.20 maturity 06/29/16 none 12/29/16 Beal8k 07370T2G7 32574 CD 245,000.00 245,000.00 245,000.00 0.600% 245,031.85 maturity 07/06/16 none 01/04/17 Georgia Bank &Trust 373128FV4 27574 CD 245,000.00 245,000.00 245,000.00 0.600% 245,049.00 maturity 07/08/16 none 01/09/17 Sterling Bank of Poplar Bluff 85916VAW5 57813 CD 245,000.00 245,000.00 245,000.00 0.600% 245,041.65 maturity 07108/16 none 01/09/17 ZB NA 988788DF2 2270 CD 245,000.00 245,000.00 245,000.00 245,000.00 0.550% 244,686.40 maturity maturity maturity 08109/16 07/18/16 07/14/16 none none none none 01/09/17 01/11/17 01/12/17 01/13/17 Bank of India NY 06279HNB5 33648 CD 245,000.00 245,000.00 0.600% 245,034.30 Everbank BMO Harris Bank NA Discover Bk Greenwood Del Whitney Bk New Orleans LA _ First State Community Bank Homestreet Bank 29976DN97 34775 CD 245,000.00 245,000.00 245,000.00 0.600% 245,041.65 244,742.75 245,034.30 247,395.20 245,063.70 05581WHK4 254672864 966594AP8 16571 CD 245,000.00 245,000.00 245,000.00 247,000.00 245,000.00 0.600% maturity maturity 07/15/16 5649_ CD 245,000.00 247,000.00 245,000.00 245,000.00 0.600% 07/13/16 none 01/13/17 12441 17323 CD CD 247,000.00 0.850% maturity 01/27/16 none 01/27/17 33708UBZJ 43785QHZ9 245,000.00 245,000.00 0.500% maturity 05/27/16 06/27/16 02/27/17 32489 CD 245,000.00 245,000.00 245,000.00 0.500% 245,075.95 maturity 05/27/16 06/27/16 02/27/17 TCM Bank 872308CB5 34535 CD 245,000.00 245,000.00 245,000.00 0.650% 245,110.25 maturity 05/31/16 none 03/31/17 Amex Centurion Bank 02587DE61 27471 CD 248,000.00 248,000.00 248,000.00 0.900% 248,478.64 semi-annual 10/28/15 04/28/16 04/28/17 CIT Bank NA 12556LAA4 58978 CD 245,000.00 245,000.00 245,000.00 0.650% 245,267.05 maturity 05/31/16 none 05/31/17 Bank of Amedca 06051VZY5 3510 CD 245,000.00 245,000.00 245,000.00 0.700% 245,247.45 248,669.60 maturity 06/02/16 none 06/02/17 Capital One NA 14042E4Q0 4297 CD 248,000.00 248,000.00 248,000.00 1.150% semi-annual 07/15/15 01/15/16 07/17/17 Investors Savings Bank 46176PFF7 28892 CD 245,000.00 245,000.00 245,000.00 0.650% 245,142.10 maturity 07/21/18 none 07/21/17 North Carolina Eastn Mun Pwr 658196U24 A3 local 323,218.40 323,218.40 310,000.00 6.217% 315,437.40 semi-annual 03/16/16 07/01/08 01/01/17 Kaufman TX 486206KKO A3 local 61,128.00 61,128.00 60,000.00 4.000% 60,798.00 semi-annual 06/28/16 none 02/15/17 Prattville AL 740019LG7 AA local 154,417.50 154,417.50 150,000.00 4.000% 150,000.00 semi-annual 10/27/15 none 09/01/16 Chaska MN 161664DU8 AA local 76,434.00 76,434.00 75,000.00 2.000°A 75,260.25 semi-annual 08/15/13 06/01/14 12/01/16 North Mankato MN Port Auth Com 660760AG4 AA local 107,657.00 107,657.00 100,000.00 4.000% 101,085.00 semi-annual 09/20/13 none 02/01/17 Philadelphia PA Auth Zero Coupon 717811-8,17 AA local 161,700.00 161,700.00 245,000.00 242,861.15 maturity 01/12/10 none 04/15/17 Lake Mills WI 510192FAO AA- local 65,000.00 65,000.00 65,000.00 0.700% 65,000.00 semi-annual 06/22/15 none 09/01/16 Osseo MN ISO #279 688443,27 AA1 local 30,103.25 30,103.25 25,000.00 6.000% 25,538.75 semi-annual 12122111 none 02/01/17 McKinney TX 581646Y91 AAl local 126,856.25 126,856.25 125,000.00 1,472%1 125,732.50 semi-annual 05/20/15 none 08/15/17 Grand Forks ND Sales Tax Raven 385492GQO AA2 local 104,082.00 104,082.00 100,000.00 4.000%1 100,000.00 semi-annual 06123/15 09/01/12 09/01/16 Burlington Cnty NJ 12163741-12 AA2 local 86,387.20 86,387.20 85,000.00 3.750% 85,721.65 semi-annual 05/10/16 none 12/15116 7,619,439.37 CD August 2016 Investment Detail Description Cusip Number Credit RatinglF DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date Maturity/ Due Date Buffalo MN ISD #877 119655PS1 AA2 local 264,250.00 264,250.00 250,000.00 4.050% 253,437.50 101,890.00 252,940.00 semi-annual 03/10/15 none 02/01/17 Waterloo IA 941647KE8 AA2 local 105,594.00 105,594.00 100,000.00 3.500% semi-annual 02/24/15 none 06/01/17 _ Tucson AZ 898711433 AA3 local 254,202.50 254,202.50 250,000.00 2.139% semi-annual 12/09/15 none 07/01/17 Maple Grove MN 56516PNY5 AAA local 230,520.40 230,520.40 220,000.00 2.000% 221,080.20 semi-annual 01/10/13 08/01/13 02/01/17 Ramsey Cnty MN 751622JG7 AAA local 100,000.00 100,000.00 100,000.00 1.130% 100,113.00 semi-annual 08112114 02/01/15 02/01/17 Tennessee Valley Auth 880591EA6 AAA local 93,153.11 93,153.11 85,000.00 5.500% 88,555.55 semi-annual 06/01109 01/18/08 07/18117 Ohio State 677521BJ4 AA1 slate 306,807.00 306,807.00 300,000.00 5.000% 300,540.00 semi-annual 03/17/16 none 09/15/16 Minnesota St 6041291`92 AA1 state 811,520.00 811,520.00 800,000.00 2.000% 809,224.00 semi-annual 07/05/16 none 08/01117 Mississippi State 605581BV8 AA2 state 25,000.00 25,000.00 25,000.00 1.116% 25,034.75 semi-annual 09/12113 none 12/01/16 Tennessee State 880541 QM2 AAA state 201,894.00 201,894.00 200,000.00 2.326% 202,700.00 semi-annual 10/26/11 02101/12 08/01/17 Fed Natl Mtg Assn 313661YP8 AAA US 130,130.00 130,130.00 130,000.00 0.800% 130,169.00 semi-annual 07/08/15 none 12/30/16 Farmer Mac 31315PZV4 AAA US 200,584.00 200,584.00 200,000.00 1.140% 200,532.00 semi-annual 03/21/16 08/03/12 02/03/17 Fed Farm Credit Bank Fed Fane Credit Bank 3133EE6A3 AAA US 200,000.00 200,000.00 200,000.00 0.590% 200,060.00 semi-annual 12/09/15 02/06/16 02/06/17 3133EATE8 AAA US 99,647.00 99,647.00 100,000.00 0.900% 100,169.00 semi-annual 11/04/13 12/08/12 06/08/17 58733ADB2 30856PAGI 91944RAE8 14042OZ06 49306SWQ5 05580ADR2 11,953,319.07 Mercantil CommeroeBank Farmers & Merchants Svgs Bk Valley Cent Svgs Bk Reading OH Capital One Bank (USA) Key Bank National Association BMW Bank of North America Ally Bank Midvale Utah Barclays Bank Synchrony Bank 22953 CD 245,000.00 245,000.00 245,000.00 249,000.00 0.900% 245,139.65 semi-annual 07/12/16 01/22/16 12122114 07/13/16 07/13116 01/22/16 12129/16 02122/16 01/22/15 01/13/17 01/13117 07/22/16 12/30/16 09/29/17 10/23/17 12/22/17 07/13/18 07/13/18 01122119 07/01/19 07/02/19 07/11/19 9298 CD 249,000.00 249,000.00 1.050% 250,461.63 monthly 28555 CD 150,000.00 150,000.00 150,000.00 1.250% 150,846.00 monthly 33954 CD 245,000.00 245,000.00 245,000.00 0.900% 245,257.25 semi-annual 17534 CD 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 0.850% 245,482.65 248,280.55 semi-annual semi-annual 35141 CD 245,000.00 1.600% 02006LF32 57803 CD 245,000.00 1.200% 245,656.60 semi-annual 06/30/16 06740KHB6 57203 CD 247,000.00 247,000.00 247,000.00 2.050% 253,271.33 semi-annual 07/03/14 01/02/15 87164WBT4 27314 CD 247,000.00 247,000.00 247,000.00 2.050% 253,239.22 semi-annual 07/11/14 01/11/15 JP Morgan Chase Bank NA 48125Y5L4 628 CD 245,000.00 245,000.00 245,000.00 1.100% 245,313.60 quarterly 07/15/16 10/15/16 07/15/19 PrivateBank & Trust Co 74267GU48 33306 CD 247,000.00 247,000.00 247,000.00 247,000.00 2.000% 2.050% 253,288.62 semi-annual 07/21/14 01/21/15 07/22119 Goldman Sachs Bank USA 38147JU59 33124 CD 247,000.00 247,000.00 253,002.10 semi-annual 07/23/14 01/23/15 07/23/19 First Federal Svgs Bk 32021YCH4 29690 CD 249,000.00 249,000.00 249,000.00 1.500% 255,663.24 monthly semi-annual 01/21/16 02/21/16 08/21/19 Victory Bank 92644LAB8 58615 CD 247,000.00 247,000.00 247,000.00 2.000% 253,476.34 09/24/14 03/24/15 09/24/19 Third Federal Sav&Loan 88413QAW8 30012 CD 128,000.00 128,000.00 128,000.00 2.000% 131,810.56 semi-annual 11/24/14 05/24/15 11/25/19 Celtic Bank 15118RJMO 57056 CD 247,000.00 247,000.00 247,000.00 2.050% 255,607.95 semi-annual 12/20/13 06/20/14 12/20/19 Steams Bank NA 857894PB9 10988 CD 247,000.00 247,000.00 247,000.00 1.000% 254,501.39 semi-annual 12/26/14 06/26/15 12/26/19 Citizens Alliance Bank 17318LAP9 1402 CD 249,000.00 249,000.00 249,000.00 2.000% 258,165.69 monthly 06/27/14 07/27/14 06/26/20 Enerbank USA 29266NA31 57293 CD 249,000.00 249,000.00 249,000.00 2.100% 258,270.27 monthly 07118114 08/18/14 07/20/20 Elbow Lake MN 284281KC5 A local 170,045.70 170,045.70 165,000.00 2.750% 171,925.05 semi-annual 12/08/14 none 12/01/19 Oshkosh Wis Storm Wtr Util 68825RBDI Al local 101,003.00 101,003.00 100,000.00 3.250% 102,480.00 semi-annual 10/05/10 05/01/11 05/01/18 Oneida County NY 6824543R2 Al local 68,632.80 68,632.80 60,000.00 100,000.00 15,000.00 6.250% 64,314.60 semi-annual 08/16/10 none 04/15/19 Junction City Kansas 481502F72 A2 local 101,558.00 101,558.00 5.500% 108,099.00 semi-annual 05/28108 03/01/09 09/01/18 Augusta ME 051411 ND4 A3 local 16,875.00 16,875.00 5.250% 15,311.10 semi-annual 03/07/12 none 10/01/17 Kaufman TX 486206KL8 A3 local 72,922.50 72,922.50 70,000.00 4.000% 72,615.90 semi-annual 06/28/16 02/15/17 02/15/18 Farmington MN 311297W84 AA local 102,787.00 102,787.00 100,000.00 2.000% 103,089.00 semi-annual 07/06/16 none 02/01/19 2,365,450.95 local 1,337,498.75 state 630,930.00 US Less Than 1 Year 4,556,734.64 CD August 2016 Investment Detail Description Cusip Number Credit Rating/F DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date MaturityI Due Date Rice Cnty MN 762698GK8 AA local 45,466.80_ 45,466.80 40,000.00 4.400% 43,122.00 semi-annual 03/07112 none 02/01/19 Racine WI 750021604 AA- local 101,792.00 10,000.00 101,792.00 10,000.00 100,000.00 2.100% 101,687.00 semi-annual 01/24/12 06/01/12 06/01/18 Minnetrista MN 604229KE3 AA+ local 10,000.00 2.450% 10,012.50 semi-annual 10/10/13 08/01/14 02/01/19 Ramsey MN 751813PB6 AA+ local 158,677.85 158,677.85 145,000.00 4.500% 145,426.30 209,724.45 255,557.50 semi-annual semi-annual semi-annual 02/16/12 04/01/16 04/01/19 Rothsay MN ISO #850 778731AZ2 AA+ local 208,640.25 208,640.25 195,000.00 3.000% 07/06/16 none 02/01/20 Steams Co MN 857896MH4 AA+ local 276,875.00 276,875.00 250,000.00 4.500% 04/17/13 none 06/01/20 Minnetrista MN 604229KGB AA+ local 161,038.40 161,038.40 160,000.00 3.100% 160,222.40 semi-annual 10/10/13 08/01/14 02/01/21 Greenway MN ISO #31 39678LDF6 AA+ local 27,593.50 27,593.50 25,000.00 5.000% 27,280.25 semi-annual 07/09/13 none 03/15/21 Dane County Wl 236091 M92 AA1 local 106,487.00 106,487.00 100,000.00 2.450% 101,800.00 semi-annual 07/16/12 none 12/01/17 Minneapolis MN 60374YF93 AA1 local 220,938.00 220,938.00 200,000.00 4.000% 209,412.00 semi-annual 03/04/14 none 03/01/18 Scott County]A 809486EZ2 AA1 local 114,450.33 112,617.00 100,000.00 4.400% 104,227.00 semi-annual 10/31/12_ 12/01/12 06/01/18 King Cnty WA 4947401-5 AA1 local 224,634.00 224,634.00 200,000.00 3.980% 212,072.00 semi-annual 03/27/12 none 12/01/18 Minneapolis MN 60374YS73 AA1 local 111,898.00 111,898.00 100,000.00 3.250% 105,233.00 semi-annual 06/05/12 12/01/11 12/01/18 Cedar Rapids IA 150528RMI AA1 local 217,672.00 217,672.00 200,000.00 3.000% 209,800.00 semi-annual 06/11/13 12/01/13 06/01/19 Minneapolis MN 60374YS81 AA1 _AA1 AA1 AA1 _ AA2 local local local 278,632.50 100,836.00 106,979.00 50,606.00 254,312.50 278,632.50 250,000.00 3.500% 267,925.00 semi-annual 02/26/13 none 12/01/19 Hampton VA 4095582JI 100,836.00 100,000.00 2.2099 102,650.00 semi-annual 01/20/16 none 04/01/20 Middleton WI 596782RX2 106,979.00 100,000.00 3.750% 105,193.00 semi-annual semi-annual semi-annual semi-annual 02/24/15 11/10/14 07/12/16 05/14/15 none 12/01/14 11/01/13 12/15/15 09/01/20 06/01/21 11/01/17 12/15/17 02/01/18 02/01/18 02/01/19 06/01/19 Des Moines IA Area Cmnty Col 250097H21 local local 50,606.00 50,000.00 2.450% 52,524.00 R_egl Transprtn Dist, Denver Prior Lake MN Hopkins Minn ISO #270 Orono MN ISD#278 Orange Beach ALA Waterloo IA Western Lake Superior MN 759136RR7 254,312.50 250,000.00 2.000% 252,792.50 742617CB7 439881 HCO 687136LA7 68406PHF1 941647PAl 958522WU4 AA2 local 230,000.00 230,000.00 230,000.00 1.000% 230,151.80 AA2 AA2 AA2 local 95,278.40 95,278.40 80,000.00 5.250% 84,586.40 semi-annual 04/30/12 08/01/09 local 115,511.00 115,511.00 241,689.60 50,559.50 110,000.00 240,000.00 50,000.00 4.000% 115,227.20 semi-annual 08/04/16 02/01/17 local 241,689.60 4.400% 2.000% 3.150% 2.400% 1.740% 252,933.60 51,028.50 105,231.00 304,513.75 111,662.10 191,946.00 102,815.00 semi-annual 08/05/10 02/01/11 _ local 50,559.50 semi-annual 06/27/13 12/01/13 _AA2 AA2 local 100,000.00 100,000.00 100,000.00 semi-annual 08/16/11 04/01/12 10/01/19 Portsmouth VA 73723RSL6 AA2 local 286,268.00 286,268.00 295,000.00 semi-annual 07/17/13 02/01/14 02/01/20 Brunswick Cnty 117061VHI AA2 local 108,967.10 108,967.10 110,000.00 semi-annual maturity 08/21/15 none 05/01/20 Kane McHenry Cook & De Kalb Zero Cpn 484080MB9 AA3 local 157,328.00 157,328.00 200,000.00 07/16/12 none 12/01/18 Moorhead MN 6161412R7 AA3 local 108,820.00 108,820.00 100,000.00 3.800% semi-annual 11/14/11 none 02/01/20 Davenport Iowa 238388GS5 AA3 local 111,948.00 111,948.00 100,000.00 4.650% 102,640.00 semi-annual 09/13/11 none 06/01/20 Whitewater Wis 966204KA6 AA3 local 109,541.00 109,541.00 100,000.00 4.850% 112,724.00 semi-annual 06/09/11 none 12/01/20 Washington County MN 937791KL4 AAA local 115,000.00 115,000.00 115,000.00 3.750% 117,602.45 semi-annual 07/01/10 01/01/11 01/01/18 Saint Louis Park MN 791740WC3 AAA local 112,114.00 112,114.00 100,000.00 3.850% 103,887.00 semi-annual 12/22/11 none 02/01/18 Brownsville TX ISD Zero Coupon 116421E46 AAA lural 229,640.00 229,640.00 250,000.00 244,527.50 maturity 06126/13 none 08/15/18 Minnetonka MN ISO #276 604195RA7 AAA local 37,433.20 37,433.20 35,000.00 3.100% 36,154.65 semi-annual 12/22/11 none 02/01/19 Palm Beach Cnty FLA 696497TR7 AAA local 256,504.60 256,504.60 220,000.00 5.898% 237,131.40 semi-annual 07/06/11 none 06/01/19 Tenn Val Auth Cpn Strip Zero Cpn 88059EWZ3 AAA local 262,890.00 262,890.00 300,000.00 288,669.00 maturity 12/27/13 none 06/15/19 Norwalk Conn 668844DS9 AAA local 122,464.80 122,464.80 120,000.00 4.050°h 126,636.00 semi-annual 08/04/10 08/01/11 08/01/19 Greensboro NC 395460V21 AAA local 366,832.80 366,832.80 360,000.00 3.263% 378,939.60 semi-annual 07/15/11 none 10/01/19 Woodbury MN 97913PCQ7 AAA local 123,037.35 123,037.35 115,000.00 3.250% 119,671.30 semi-annual 12/22/11 none 02/01/20 Dallas TX lndpt Sch Dist 235308QK2 AAA local 116,900.00 116,900.00 100,000.00 4.450% 109,814.00 semi-annual 04/16/12 08/15/11 02/15/20 Tenn Valley Auth Zero Cpn 88059EHD9 AAA local 263,970.00 263,970.00 300,000.00 284,775.00 maturity 03/11/13 none 05/01/20 August 2016 Investment Detail Description Cusip Number Credit RatinglF DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date Maturity I Due Date Tenn Val Auth Cpn Strip Zero Cpn 88059EMX9 AAA local 88,133.00 88,133.00 100,000.00 1.400% 94,360.00 174,917.75 51,230.50 maturity 03/18/13 none 07/15/20 McAllen TX Dev Corp 579086AW9 AAA local 175,000.00 175,000.00 175,000.00 semi-annual 07/26/16 02115/17 08/15/20 Baltimore Cnty MD 05914FME7 AAA local 51,290.00 51,290.00 50,000.00 2.097% semi-annual 08/31/16 none 08/01/21 Washington State 939758OL9 AA state 205,804.00 205,804.00 200,000.00 4.500% 210,506.00 semi-annual 01/24/12 04/01/12 10/01/18 Massachusetts State 57582P2T6 AA1 state 199,744.00 199,744.00 200,000.00 2.090%1 205,036.00 semi-annual 12/17114 11/01/14 05101/20 New Hampshire St Hsg 64469DWU1 AA2 state 240,914.40 240,914.40 240,000.00 1.789% 241,672.80 semi-annual 12/09/15 07/01/16 01/01/18 New Hampshire St Hsg 64469DWV9 AA2 state 130,774.80 130,774.80 130,000.00 1.939% 131,262.30 semi-annual 12/09/15 07/01/16 07/01/18 Kansas St Dev Fin Auth 485429X90 AA3 state 182,743.20 182,743.20 180,000.00 1.877% 181,276.20 semi-annual 07/12/16 none 04/15/18 Florida St Hurricane 34074GDH4 AA3 state 279,439.80 279,439.80 270,000.00 2.995% 281,844.90 semi-annual 11110/15 07101/13 07/01/20 Minnesota St Colleges & Univ 60414FPJ3 AA3 state 100,000.00 100,000.00 100,000.00 2.000% 101,962.00 semi-annual 02/26/15 10101/15 10/01/20 Connecticut State 20772JQN5 AA3 state 214,954.00 214,954.00 200,000.00 3.517% 217,580.00 semi-annual 05/27/16 02/15/14 08/15/21 Georgia State 373384RQI AAA state 26,742.50 26,742.50 25,000.00 2.970% 25,990.50 semi-annual 02/08/12 none 10/01/18 Texas State 882722,51 AAA state 103,089.00 103,089.00 100,000.00 2.894% 103,884.00 semi-annual 08/10/11 04/01/12 10/01/18 Tennessee State 880541QQ3 AAA state 48,218.85 48,218.85 45,000.00 3.178% 48,024.00 semi-annual 08/30/16 02/01/12 08/01/20 Virginia State 928109XD4 AAA state 22,126.00 22,126.00 20,000.00 4.100% 21,480.00 semi-annual 02/07/12 none 06/01/21 Fed Farm Credit Bank 3133ECA95 AAA US 199,800.00 199,800.00 200,000.00 0.790% 200,000.00 semi-annual 12/08/15 03/18/13 09/18/17 Fed Home Ln Bank 313OA15P9 AAA US 251,187.50 251,187.50 250,000.00 1.000% 250,240.00 semi-annual 07/08/16 none 09/26/17 Fed Farm Credit Bank 3133EFJMD AAA US 249,750.00 249,750.00 250,000.00 0.930% 250,002.50 semi-annual semi-annual semi-annual semi-annual semi-annual 05/25/16 07/30112 09/11/13 10/30/12 04113/16 01130113 none 01/30/13 04/13/18 07/30118 08/01/18 01/30/19 03/04/19 Fed Home Ln Mlg Corp Med Term Note 3134G3ZK9 AAA US 200,000.00 200,000.00 200,000.00 1.200% 201,342.00 Fed Farm Credit Bank _ Fed N_atl Mtg Assn Fed Farm Credit Bank Fed Home Ln Mtg Corp Med Tenn Note RFCSP Strip Principal Zero Coupon Fed Farm Credit Bank 31331Y4S6 AAA US 114,000.00 114,000.00 100,000.00 5.050% 107,687.00 3136GOY70 3133EC5NO 3134G961.16 76116FAA5 AAA AAA AAA AAA US _ 199,300.00 199,300.00 200,000.00 1.080% 200,614.00 US 99,587.00 99,587.00 100,000.00 1.250% 100,001.00 199,188.00 193,048.00 01/07/13 03/04/13 US 200,000.00 200,000.00 200,000.00 1.050% quarterly 08/23/16 11/23/16 08/23/19 _ US US 185,568.00 199,600.00 185,568.00 200,000.00 maturity 07/22/15 05/25/16 none 10/15/19 3133EGSKO AAA 199,600.00 200,000.00 1.300% 199,736.00 semi-annual 11/25/16 11/25/19 Fed Home Ln Mtg Corp Zero Cpn 31340OBV4 AAA US 950,527.00 950,527.00 1,000,000.00 956,170.00 maturity 11/02/15 none 11/29/19 Fed Home Ln Bank 3130A3XL3 AAA US 99,500.00 99,500.00 100,000.00 1.500% 100,138.00 semi-annual 07/22/15 08/10/15 02/10/20 Fed Nat[ Mtg Assn Remic 31393EAL3 US 204,187.50 4,714.23 4,617.54 4.500% 4,714.09 monthly 07/30/03 none 08/25/18 FICO Strip Prin Zero Coupon 31771KACI US 295,932.00 295,932.00 300,000.00 297,186.00 maturity 10/23/15 none 10/06/17 FICO Strip Pm -4 Zero Coupon 31771EAD3 US 194,572.00 194,572.00 200,000.00 198,206.00 maturity 03/16/15 none 10/06/17 FICO Strip Cpn-E Zero Coupon 31771JXM7 US 215,452.16 215,452.16 224,000.00 221,271.68 maturity 12/11/14 none 11/02/17 FICO Strip Cpn Zero Coupon 31771EAA9 US 529,947.00 529,947.00 550,000.00 541,937.00 maturity 06/09/14 none 05/11/18 Fed Home Ln Mtg Corp 31393VMQI US 153,656.25 2,818.42 2,751.34 4.500 % 2,806.39 monthly 06/30/03 06/15/18 FICO Strip Cpn13 Zero Coupon 31771C2G9 US 93,140.00 93,140.00 100,000.00 97,841.00 maturity maturity 12/29/14 04/17/15 none none 12/27/18 02/01/19 FICO Ship Cpn Zero Coupon 31358BAA6 US 94,480.00 94,480.00 100,000.00 96,896.00 18,194,649.05 Kaufman TX 486206KR5 A3 local 61,821.00 61,821.00 60,000.00 3.000% 62,644.20 semi-annual 06/28/16 02/15/17 02/15/23 Chaska MN 161663653 AA local 115,122.70 115,122.70 110,000.00 4.000% 116,657.20 semi-annual 09/08/14 none 02/01/24 Mitchell SD Sch Dist #17-2 606687EHO AA local 116,702.00 116,702.00 100,000.00 6.000% 110,254.00 semi-annual 12/20/11 06/15/19 06/15/24 Minnetrista MN 604229KJ2 AA+ local 40,000.00 40,000.00 40,000.00 3.850% 40,066.40 semi-annual 10/10/13 08/01/14 02/01/23 Savage Minn 80465PAN4 AA+ local 198,018.00 198,018.00 200,000.00 4.800% 211,804.00 semi-annual 06/17/10 02/01/11 02/01/24 7,448,271.05 local 1,770,518.70 state 4,419,024.66 US 1- 5 Years August 2016 Investment Detail Description Cusip Number Credit Rating/F DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current MarketDate Value Acquired Coupon Date Maturity) Due Date Lake City Minn ISD #813 508084DW7 AA+ local 103,933.00 103,933.00 100,000.00 5.000% 107,009.00 semi-annual 05/11/11 none 02/01/25 Minneapolis MN 60374YG68 AA1 local 110,419.00 110,419.00 100,000.00 4.700% 108,213.00 semi-annual 10/31/11 none 03/01/23 Minneapolis MN 60374YG76 AA1 local 72,201.35 72,201.35 65,000.00 4.800% 70,361.20 semi-annual 12/09/14 none 03/01/24 Alexandria MN SID #206 015131LQ6 AA2 local 279,760.50 279,760.50 270,000.00 3.000% 284,234.40 semi-annual 01/21/15 none 02/01/23 Duluth MN W Palm Beach FL 264438ZL9 AA2 local 29,767.20 29,767.20 30,000.00 2.625% 30,468.90 semi-annual 12/05/12 08/01/13 02/01/25 9551 i68E7 AA3 local 101,245.00 101,245.00 100,000.00 2.264% 101,303.00 semi-annual 07/05/16 10/01/16 10/01/22 Hawkins Cnty TN 420218PL7 AA3 local 111,480.00 111,480.00 100,000.00 4.800% 105,771.00 semi-annual 03/13/12 none 05/01/24 New York Sl Mtge Ally 64988RHGO AAA local 100,000.00 100,000.00 100,000.00 2.375% 102,266.00 semi-annual 10/27/15 04/01/16 10/01/21 Columbus OH 199492CS6 AAA local 39,956.40 39,956.40 40,000.00 2.133% 41,511.20 semi-annual 02/20/15 none 12/01/21 Tennessee Valley Auth Ser E 880591CJ9 AAA local 121,500.00 121,500,00 100,000.00 6.750% 139,654.00 semi-annual 03/19/09 none 11/01/25 Ice Deposit- National Sports Center none IOc81 250,000.00 250,000.00 250,000.00 250,000.00 maturity 02/06/08 none 01/01/26 Florida St Dept Environmental 34160WUAO AA3 state 217,800.00 217,800.00 200,000.00 6.206% 226,248.00 semi-annual 08/30/10 07/01/10 07/01/22 2,108,465.50 100,000.00 Itasca County Minn 465452GP9 A local 105,024.00 105,024.00 5.550% 104,283.00 semi-annual 07/12/11 none 02/01/28 Mllaca Minn ISD #912 598699NT9 AA+ AA1 AA2 local local local 106,941.00 102,750.00 159,000.00 106,941.00 102,750.00 159,000.00 100,000.00 100,000.00 500,000.00 5.650% 6.430% 109,687.00 112,110.00 319,890.00 semi-annual semi-annual maturity semi-annual 07/22/11 07/17/09 08/25/09 02/28/10 none 11/01/09 none none 02/01/27 05/01/29 11/01/27 04/21/28 Van Buren Mich Public Schools 920729HD5 Will County IL Cmmy Zero Coupon 969078QM9 Fed Farm Credit Bank 31331 VLC8 AAA US 106,030.45 106,030.45 100,000.00 5.250% 130,761.00 776,731.00 33,033,064.62 1,882,217.50 local 226,248.00 state 6 -10 Years 645,970.00 local 130,761.00 US 30+ Years INVESTMENT SCHEDULE - Money Market Funds August 31, 2016 Description Current Market Value YTD Interest Wells Fargo I lWells Fargo Government Money Market Fund 1 $2,256,840.18 $182.96 4M 1 14M 1 1,893.341 0.82 4M PLUS 1 14M Plus 1 3,104.161 3.31 Premier Bank z jPremier Bank Money Market 260,595.401 558.00 Grand Total Money Market Funds 1 $2,522,433.08 18745.09 Updated: 9114/2016