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HomeMy WebLinkAboutWK - September 24, 20241685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN.GOV City Council Workshop Tuesday, September 24, 2024 City Hall — Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Discuss Met Council's Draft Imagine 2050 Plan — Planning 3. Discuss Fencing City Code Amendments — Planning 4. Discuss Local Affordable Housing Aid — Planning 5. Discuss Anoka County Highway Department Preliminary Roundabout Layout for Crosstown Blvd./1615` Ave (24-38) - Engineering 6. Discuss Street Lighting Options for the Roundabouts at Nightingale Street/Crosstown Blvd. (23-18) & Nightingale Street/ Veterans Memorial Blvd. (23-19) - Engineering 7. 2025 Special Revenue, Debt Service, Capital Projects, Enterprise & Internal Service Funds Budget Distribution & Discussion —Administration/Finance 8. Discuss 2024 GO Equipment and 2025 GO Street Reconstruction Bonds — Administration/Finance 9. Other Topics 10. Adjournment 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers ����� CC: Dave Berkowitz, Interim City Administrator FROM: Joe Janish, Community Development Director SUBJECT: Discuss Imagine 2050 - Planning DATE: September 24, 2024 a. DISCUSSION State Law requires Met Council to create regional plans and policies to guide growth and manage regional systems (transportation, aviation, water resources, and regional parks). Currently Met Council is seeking public comment on the Draft Imagine 2050 Policy Plan. Once adopted local plans are then compared to the framework of Met Council's Imagine 2050. The City of Andover's current Comprehensive Plan was developed using Thrive 2040 regional plans and policies. Imagine 2050 starts with new goals and was developed utilizing those goals. This means that Imagine 2050 is not an update to Thrive 2040, making a general comparison within a short time period rather difficult. However, Met Council will have staff present at the meeting to provide a broad overview of Imagine 2050, and highlight some of the changes. Please keep in mind the document is rather large and time will not be able to cover the entire document. This link will provide access to Imagine 2050: httns•llmetrocouncil.orelaetdocl2e6e5b48-f9bc-498b-9f9b-ebdd00d42d45/Agenda asix Attached are highlights within Imagine 2050, related to Andover for the City Council to review. Public comments can be made on Imagine 2050 from August 15 to October 7. Currently Met Council will host a public hearing on Wednesday, September 25 at 5 p.m. in the Met Council Chambers at 390 Robert St. N. in Saint Paul. Met Council is offering the ability to submit comments in multiple ways: online, mail, e-mail and a public comment phone line. ACTION REQUESTED The City Council is requested to review the information provided and provide general direction to staff to formulate formal response to Imagine 2050. ResIsh su ed, Joe J f Community Development Director CC: Eric Wojchik, AICP- Planning Analyst and Climate Policy Analyst, Local Planning Assistance (email) EXCERPTS FROM IMAGINE 2050 DOCUMENTS LAND USE: https://metrocouncil.ore/Council-Meetings/Committees/Metropolitan-CounciU2024/08-14- 2024/2024-192-JT-Item-2.aspx 1) Page 17, PI, A2 A2. Establish an American Indian Advisory Council with authority and dedicated resources to implement land management guidelines in areas of Met Council influence or ownership. This Advisory Council would need to be established by the Met Council and participants with a mutually agreed upon structure, purpose, and role in the Met Council's decision-making process. This Advisory Council is intended to focus on Imagine 2050 implementation, issues of regional importance, and does not interact with or assume responsibilities of others in established review of cultural or archeological assets. (Met Council) 2) 18, P2, A2 A2. Using a rolling land supply analysis, the Met Council will evaluate requests to connect a new municipality outside of the Met Council's long-term sewer service area - or a new area within an already served municipality - to the regional wastewater system. The evaluation will be based on the regional need for additional land to accommodate growth and local development trends. Identifying a 20 -year rolling land supply ensures that there is sufficient land within the planned Metropolitan Urban Service Area (MUSA) to accommodate the region's forecasted growth without having an oversupply that leads to premature infrastructure investments. This evaluation helps prevent inadvertent restriction of land supply that can drive up land prices, while also carefully evaluating MUSA expansion requests within a local jurisdiction and across the region. Analysis shows that there is more than adequate land supply within the current MUSA boundary to accommodate the 2050 regional growth forecasts. (Met Council) 3) 18, P2, A2, vi. vi When calculating land capacity, the following will be excluded: publicly protected areas, water bodies, wetlands, steep slopes, areas with limited depth to bedrock, depth to water table, and areas protected by public ownership/easement. 4&5) 19, A3, Table 2 Table 2. Overall Density expectations by community designation and service area Urban Urban Edge Suburban Suburban Edge 25 units per acre 14 units per acre 7 units per acre 4 units per acre • ■- Rural Center 3 units per acre minimum Rural Residential 1-2.5 acre lots existing, 1 unit/10 acres where possible Diversified Rural 4 units per 40 acres Agricultural 1 unit per 40 acres Average minimum and maximum densites apply to all areas panned to accommodate forecasted growth in the planning period 6) 20, iii iii Measure minimum net density by taking the minimum number of planned housing units and dividing by the net acreage. Net acreage does not include land covered by wetlands, water bodies, public parks and trails, public open space, arterial road rights- of-way, and other undevelopable acres identified in or protected by local ordinances such as steep slopes. This applies to local governments within the MUSA and Rural Center communities. (Local Government) 7) 20,viii viii In the Rural Service Area, the development pattern in Rural Residential community designations reflects both historic large lot subdivisions and areas with environmental limitations to development. This effectively precludes provision of urbanized infrastructure in an effective, connected, and efficient manner and in some cases increases the potential for damage to the environment. These areas need to accommodate minimal growth while protecting natural areas, water quality and quantity, and ensuring sufficient public infrastructure. Expansion of the Rural Residential community designation is inconsistent with regional goals and objectives and considered a departure from regional system plans. (Met Council) 8) 21, A4, Table 3 Table 3. Future affordable housing need minimum density requirements Option 1 Guide sufficient land at a minimum density of 10 units/acre to meet the city or township's total Future Need. Option 2 Guide sufficient land at a minimum density of 12 units/acre to meet the city or township's Future Need for 30% AMI or less and a minimum density of 8 units per acre to meet the Future Need at 31-60% AMI. 9) 22, A6 A6. Allow for more than one housing type in land use categories with residential uses. To accommodate this, residential densities for land use categories need to provide a wide enough range of densities so that more than one housing type can be developed within individual land use categories. Single -use residential districts, particularly on the lower density end, limit the diversity of housing within the region and prevent more efficient use of land. Also, single-family residential districts occupy more land than any other use within the Urban Service Area. Limiting such a large land supply to one housing product impacts land use efficiency, diversity of housing stock within neighborhoods and across the region, and availability of options for residents to stay within the community of their choice as their needs and abilities change. 10) 23, A4 A4. Encourage promulgation of right -to -farm policies and ordinances at the local level (Met Council/Local Government) 11) 23, A5, ii Support changes to the definition of "farm" to expand benefits to smaller (less than 10 acres) farmsteads. 12) 23, A5, iii iii Support changes to the building code to reduce the barriers for constructing hoophouses and similar agricultural structures on non-farm properties. 13) 23, A7 AT Update land use guidance and regulations to incentivize de -paving in infill and redevelopment opportunities. (Local Government) 14) 23, P5 P5. Direct growth away from sensitive ecosystems and water sources to prioritize protection of natural systems. Responsible management of growth can include practices which respect and value the region's ecological assets. Considerations as to where and how development occurs can positively impact ecological health and accommodate development. Areas with high biodiversity or ecological significance require sensible land use approaches to development. The Met Council promotes development and land use stewardship that integrates natural systems in design and implementation. (Met Council/Local Government) 15) 25, P3 P3. Support community -led planning and anti -displacement efforts to ensure community cohesion during change resulting from public investments and market demand, at all scales of development. Al. Consider mitigation measures for displacement due to changes in the built environment including relocation assistance programs, land -disposition practices, anti -displacement funding programs, support of commercial and residential land trusts, and others. (Local Government) A2. Identify appropriate mitigation measures for different scales of development to provide a consistent and transparent level of planning and engagement (Local Government) A3. Consider implementation of new policies or retrofitting existing ones to better meet the needs of communities vulnerable to displacement resulting from public investments. (Met Council/Local Government) A4. Support community -centered engagement practices and community -led decision-making as part of development and public investment. (Met Council/Local Government) 16) 27, P1, A5 A5. Adopt a Living Streets policy in the land use plan and integrate this policy into zoning ordinances, transportation plans, and development regulations to ensure its consistent application in all projects and street redesigns. (Local Government) 17) 28, P2, A2 A2. Encourage creative and purposeful placemaking that celebrates diversity and enhances community spirit for all residents, incorporating universal design to exceed standard accessibility where practical. Universal design is a concept in which products and environments are designed to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design. It aims to make the built environment inclusive, accommodating diverse needs and preferences, including those of individuals with disabilities, older adults, children, and people with temporary or situational impairments. (Local Government) 18) 29, A2 A2. Local governments must identify historic and cultural assets within their jurisdiction, incorporating measures to respect and protect the confidentiality and cultural significance of sensitive sites, such as American Indian burial mounds. (Local Government) 19) 30, P2, A2 A2. Update land use planning regulations to incorporate measures for protecting, restoring, and enhancing natural systems corridors, such as conservation easements and wildlife -friendly development standards. (Local Government) 20) 32, P2, A4 A4. Support the creation and enforcement of local controls that permit the construction of accessory dwelling units in areas within the MUSA. 21)33, P1 P1. Take ownership of past harms, provide transparent communication, and hold all government partners accountable to plans and actions. Communities should hold the Met Council accountable to action on these issues. (Met Council) 22)33, P1, A5 A5. Support and partner with Just Deeds (Just Deeds Project) to discharge racially restrictive covenants from housing deeds. (Met Council/Local Government) 23) 34, P3 P3. Promote equitable development and distribution of public investments to benefit communities disproportionately harmed by past and present policies and land use planning practices to eliminate racial disparities and discrimination. (Met Council/Local Government) 24) 34, P4, A3 A3. Create a power sharing structure to partner with American Indian organizations and community members in planning processes. 25) 36, A6, A7 A6. Local governments must include in their comprehensive plans a greenhouse gas emissions inventory and projections generated from activity within the local government's jurisdiction and covers the range of applicable emissions sectors. (Local Government) AT Local governments must plan for strategies that reduce or naturally sequester greenhouse gas emissions. (Local Government) 26) 36, P2 P2. Support local planning decisions to restore, enhance, and maintain the urban tree canopy. (Met Council) Al. Conduct urban tree canopy assessments to identify priority areas for preservation, restoration, and maintenance efforts. (Met Council) A2. Develop model urban forest management goals and strategies to protect and enhance the tree canopy, soil health, water quality, and overall biodiversity. (Met Council) A3. Implement tree planting, preservation, and maintenance initiatives at the local level. The Met Council will provide technical assistance, training, and resources to support local governments and residents. (Met Council/Local Government) A4. Assess the adaptation, mitigation, and public health value of the regional urban tree canopy to support local level decision-making and policy development. (Met Council) A5. Support species diversity and climate adaptive planting on public and private land, including support for management of Emerald Ash Borer. (Met Council/Local Government) 27) 37, A8 A8. Develop policy incentives and allocate dedicated funding to support the adoption of nature - based climate adaptation solutions at the local level. (Local Government) 28) 39, P3 P3. Value and promote a just economy through the economic growth and wellbeing of Black communities, American Indians, people of color, immigrants, and people of all ages and abilities in the region through equitable access to economic resources. (Met Council/Local Government) Al. Remove barriers and promote equitable access to quality education, skill -building, mentorship programs, and diverse job training programs for all residents regardless of age, race, disability, or immigration status. Where possible, the Met Council will model skill building, mentorship, and internship programs that support equitable workforce development. A2. Encourage businesses and developers to adopt diversity and inclusion initiatives aimed at recruiting, retaining, and promoting employees from diverse racial and immigrant backgrounds. A3. Support culturally responsive access to financial services and resources for underserved communities, including immigrants and people of color (ex. credit building, sharia compliant financing, ITIN acceptance.). A4. Collaborate with agencies and other regional stakeholders on planning and programming that promote the economic wellbeing of the region, prioritizing efforts that reduce racial economic disparities. HOUSING: https://metrocouncii.org/Council-Meetings/Committees/Metropolitan-Council/2024/08-14- 2024/2024-192-JT-Item-4. a s px 29) 25 Objective 1 o Support "missing mid dle° housing (small and medium multifamily and attached single family homes) as a strategy to improve affordability and expand housing choices for cities and townships across the region. 30) 27, Plan 15t bullet Plan: • Provide data reflecting an allocation of Affordable Ownership Housing Need to local governments to inform planning for the development of low-income affordable ownership opportunities based on cities' and townships' existing deficit of affordable ownership options. 31) 27, Plan 21a bullet • Require that local comprehensive plans specify the development and preservation tools they will seek to use or continue to use throughout the decade to meet their Ideal affordable homeownership need- 32) eed 32) 37, 7th bullet • Inform state building code updates to encourage constriction of more affordable, maintainable, high-quality, safe, and climate -resilient homes. Comment City Council # Section Summary of Text Relation to Andover Staff's Concerns Concern? n Use Plan 1 17, P 1, A2 Establishment of American Indian Advisory Council with Creation of another entity to regulate developments Additional review, time and cost for development ultimately born on the end user of Authority a property which will increase housing costs. Limitations on expansion of MUSA's will create additional growth into other communities. Limitations on expansion will cause land values to increase. Cities have no control over when private property owners will make land available for Rural Reserve expansion, additional pressure on development or market conditions, therefore, just because a piece of land may be 2 18,P2, A2 Met Council Evaluation of MUSA expansion development, increased land costs developable doesn't mean it will be developed. Met Council Language itself indicates "Analysis shows that there is more than adequate land supply within the current MUSA boundary to accommodate the 2050 regional growth forecasts." Page 4, Line 8 indicates "MUSA shows that the region has more than 100 years' worth of land supply". This will also increase housing costs. 18 P2 A2 Areas within the 100 year floodplain boundary are already protected by local 3 vi. Calculating land capacity Net Density Calculations ordinances and federal regulations in most Cities. Floodplain should be added to the areas to be excluded when calculating land capacity. City of Andover has limitations on local sewer capacity and cannot make up the 19 A3 Table City of Andover would need a around 500 units more additional 500 units that would be needed to meet this requirement. Shrinking the 4 2 ' Increase in base density from 3 units/acre to 4 units/acre within current MUSA only for base density. current MUSA does not make up 500 units. Changes to MUSA that has been in place for 30 years impacts local residents. This will reduce the overall number of units that can be constructed within the MUSA which will increase housing costs. This reduces the overall rural development potential of Andover and increases 5 19, A3 Table Rural Residential locks in at 1-2.5 acre lots existing and 1 Any property not yet developed at 2.5 acres will be housing costs as less homes will be able to be built. If areas are removed from the 2 unit/ 10 acres where possible required to be 1 unit per 10 acres. MUSA, what will those areas be able to be guided to? What does the 1 unit per 10 acre requirement mean in practice? City of Andover has limitations on local sewer capacity and cannot make up the additional 500 units that would be needed to meet this requirement. Shrinking the 6 20, iii Measure of minimum net density. Does not include floodplain. current MUSA does not make up 500 units. Changes to MUSA that has been in place for 30 years impacts local residents. This will reduce the overall number of units that can be constructed within the MUSA which will increase housing costs. Expansion of the Rural Residential community designation If MUSA is shrunk to accommodate base density - This reduces the overall rural development potential of Andover and increases 7 20, viii is inconsistent w/regional goals and objectives and appears as though you can't use Rural Residential to housing costs as less homes will be able to be built. If areas are removed from the I considered a departure from regional system plans. "fill" the area. MUSA, what will those areas be able to be guided to? 21, A4, Option 1 is increase that the city will need to provide for. Option 1. We may not have the capacity within the City sewer system to 6 Table 3 Increase in density for Affordable Housing. Option 2 is a restriction on income which determines accommodate this increase in density. Option 2 - There may be a concern regarding density. the potential legality of this option. Our sewer system is limited in capacity. Providing for multiple dwellings reduces 9 22,11 Allowing for multiple housing types in land use categories single family and duplex units allowed in one category other units on other properties. Met Council density calculations do not provide credit for increased density within land use categories until development occurs, so what is the incentive to make density ranges larger when no credit is received? 10 23, A4 promulgation NST WORDING Met Council should utilize clear and plain language that anyone can understand throughout the plan. 11 23, A5, ii 12 23, A5, iii 13 23, A7 14 23, P5 15 25, P3 16 27. P1. A5 17 28, P2, A2 18 29, A2 19 20 21 22 30, P2, A2 32, P2, A4 33, P1 33, Pl, A5 23 34, P3 24 34, P4, A3 25 36, A6, A7 26 36, P2 change the definition of "farm" to expand benefits to smaller farmsteads (less than 10 acres). Change building code to allow for hoophouses and similar ag structures on non-farm properties. Update land use guidance and regulations to incentivize de - paving in infill and redevelopment opportunities. Directing growth away from sensitive ecosystems & water sources Anti Displacement Policies Adopt living streets policy and integrate into zoning ordinances. Incorporate universal design Changing "farm" can cause conflicts with suburban life and increased conflicts between neighborhoods. This requirement wants to expand benefits of farming to Fanning isn't always compatible with suburban life. smaller homesteads (less than 10 acres), however, the proposed density restriction for Rural Residential does not allow smaller homesteads. These requirements appear to conflict with each other. This would allow hoophouses and other typical ag The hoophouses in particular are not allowed in Andover. The hoophouses are structures in neighborhoods. typically used by residents to park vehicles and not used for ag activities by residents. Andover does not have transit. Our community relies on This requirement would remove local control by advocating for development with parking, and paved infrastructure. less parking, even though there is no suitable transportation alternative in our community. Not sure what this means Complete streets by another name. Would require wholesale changes to road projects. increased costs, but also make property/location more accessible. Identification (mapping) then protect the confidentiality of This is already conducted as part of the development. locations Establish wild -life friendly development standards Support ADU's in MUSA j Take ownership of past harms Partner with Just Deeds to discharge racially restive This is already conducted as part of the development This reduces units permitted elsewhere suggested language change Cities don't typically review deeds of properties covenants Promote equitable development and distribution of public Andover maintains and evaluates public investments investments yearly and includes them in the CIP Create a power sharing structure to partner with American Indian organizations and community members in planning Potential regulations processes Greenhouse gas emissions inventory and projections generated from activity and plan for strategies that reduce or This would be a significant undertaking for the City of naturally sequester greenhouse gas emissions. Andover and would be done at great expense. restore, enhance, maintain urban tree canopy Andover is part of the Anoka Sand Plain Can these areas then be deducted from the Net density calculations? Anti Displacement polices are presumed to increase costs associated with development. It will either reduce return on investment as properties remain as is, or increase costs as policies would not only pay property owners but will also pay those occupying the spaces (renters). Overall this policy will increase end prices such as future housing. Living streets policies do not make sense in newer communities where streets already have to meet new stormwater requirements and have relatively low traffic volumes on their residential streets. This policy would increase cost of road construction improvements, long term maintenance and replacement costs and housing. Universal design is not a well defined concept that is difficult to achieve on a City wide basis. What does the Met Council expect from universal design? Identifying specific burial grounds, even if done confidentially, should not be the role of the City as it is already the responsibility of other agencies such as the State Historic Preservation Office (SHPO). These agencies comment on development plans when appropriate and keep record of them. Wildlife regulations already exist in the development process. Construction of ADU's would reduce homes in other parts of our community by taking away from sewer capacity. acknowledge past harms. EL Cities don'ttypically review deeds of properties. Will the city still be able to evaluate roadways as they do now or will income have ,to be included? Additional review, time and cost for development ultimately born on the end user of a property which will increase housing costs. How are Greenhouse gas emissions inventories conducted? Who conducts them? There is not enough information here for the City to contemplate potential policy actions or effectively comment on the plan. Tree preservation and planting policies should take into account that portions of the region were previously prairie and with flora and fauna not necessarily compatible with a forested landscape. 27 37, A8 Develop policy incentives and allocate dedicated funding to Would likely increase the cost of housing. support adoption of nature based climate adaption solutions 28 39, P3 Diversity Equity and Inclusion (DEI) measures. Cities do not have legal authority to require these initiatives in the private sector. lk'Jnmmmmkx. _z a: _ wA=g.. &.. Housing Plan 29725,bjective Supporting missing middle housingSewer Capacity, Lack of Credit with Density for mixed housing types. 27, Plan 1 st Affordable Ownership Housing allocation based on existing 30 bullet deficit Unknown Where do the additional resources come from? Has the potential to increase housing costs. These goals may be well intended, however, Cities do not have the legal authority to implement these policies at the local level. Many Cities do not provide social service programs, this typically falls to a County or State level of government or nonprofits. Andover has extremely limited sewer capacity and cannot accommodate additional density beyond what has already been constructed. May lead to more affordable housing projects. Require local comprehensive plans to specify the 31 27, Plan 2nd development and preservation tools they will seek to use or This would be a significant challenge for the City of bullet continue to use throughout the decade to meet their local Andover due to market conditions. Unreasonable as housing developers look in multiple places, competitive funds, etc. affordable housing homeownership need. I L Inform state building code updates to encourage construction MHFA has requirements outside of building code for housing construction, Met 32 37, 7th bullet of more affordable, maintainable, high-quality, safe, and Increase in construction costs. Council should work with MHFA to reduce affordable housing costs per unit and down climate resilient homes. change their rules. Changing building code wont impact publicly subsidized housing. Market rate unit can actually be built cheaper than affordable units. General Comments was The plan should reference and provide for less dense housing development in areas 33 NA NA NA protected by existing State Laws relative to the Shoreland and Scenic River District programs. It is unrealistic for dense development to occur in these areas as it is prohibited by State Law. The Metropolitan Council should institute an appeals process that would allow local 34 NA NA NA governments to speak directly with the Metropolitan Council board on policy disputes. The majority of the draft policies in the land use and housing plans would likely 35 NA NA NA significantly increase the cost of construction of new housing and increase ?,V,66,Y^ 0 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor & Councilmembers CC: Dave Berkowitz, Interim City Administrator* Joe Janish, Community Development Directo FROM: Jake Griffiths, Associate Planner SUBJECT: Discuss Fencing City Code Amendments - Planning DATE: September 24, 2024 DISCUSSION At the August 27, 2024 City Council workshop, the Council discussed a residential fencing proposal for a welded wire panel fence commonly referred to as a "cattle panel". After discussion, the Council directed City staff to draft a City Code Amendment that would clarify that this type of fencing is allowed and provide conditions for its use. hi response, City staff have drafted the attached City Code Amendments for review and discussion. If the Council is supportive of the proposed amendments, they will be reviewed by the Planning & Zoning Commission at an upcoming meeting and brought back to the City Council for a final decision in the near future. ACTION REQUESTED The City Council is requested to discuss the proposed City Code Amendments and provide direction to City staff. ectfully submitted, Jake Griffis Associate Planner Attachments Draft City Code Amendments CHAPTER 7 FENCES AND WALLS SECTION: 12-7-1: Permitted Use 12-7-2: Locations 12-7-3: Fence Height 12-7-4: Performance Standards 12-7-5: Barbed Wire and Electric Fences 12-7-6: Exemptions From Provisions 12-7-7: Appeals 12-7-1: PERMITTED USE: Fences, walls, hedges and similar barriers (herein referred to as fences) shall be permitted in all yards subject to the provisions of this chapter. A permit is required for the construction of all fences or walls that are located on, in, or near any property line, drainage and utility easement, or wetland in the City of Andover. A permit application shall be submitted for review by the Engineering Department and an application fee shall be paid as outlined in Chapter 1-7-3 of this code prior to the issuance of any permit. (Amend. 12/6/05, Ord. 317) 12-7-2: LOCATION: A. Fences shall be located entirely on the private property of the individual constructing the fence. Fences may be placed up to the property line. It is the responsibility of the property owner to determine the location of property lines. Fences may be located in any private yard or along a side or rear property line, except as follows: 1. No fence shall be placed in the public right-of-way. 2. Fences shall not be placed in underground utility easements. Fences may be placed in other utility easements if they do not interfere with existing utilities. The existence and location of private utility easements and equipment must be determined by contacting Gopher State One Call. (Amended 4/19/11, Ord. 405) 3. Fences shall not be constructed or placed in drainage areas, ponds, or wetlands. Fences shall not be placed in easements that provide vehicle access for the maintenance of drainage, ponding, or wetland areas. (Amended 4/19/11, Ord. 405) 4. For fence placements on 2.5 acres and larger lots, the City may permit non-restrictive fencing in drainage, wetland or ponding areas as long as they do not restrict the flow of water. Access to ponds, wetlands and other such areas may be required by the Cityfor maintenance purposes. (Amended 4/19/11, Ord. 405) Fences in any area shall not enclose, hinder or restrict access to utility boxes, fire hydrants or other above ground utilities. (Amended 4/19/11, Ord. 405; Amended 7/21/20, Ord. 510) 6. Fences on corner lots shall not encroach upon the Sight Triangle as defined in Section 12-2-2 of this code. (Amended 7/21/20, Ord. 510) B. Any fence placed in violation of this section shall be the liability of the property owner who constructed it. The City, or any other agency having authority to work in a right-of-way or easement area, shall not be liable for repair or replacement of such fences in the event they are moved, damaged, or destroyed by virtue of the lawful use of that area. Any damage caused by the illegal placement of a fence shall be the responsibility of the property owner who constructed it. 12-7-3: FENCE HEIGHT: A. In the rear and side yards up to the front fagade of the principal structure, fences up to a height of six (6) feet are allowed. (Amended Ord. 386, 8/5/09) B. Fences located closer to the front property line than the principal structure, shall not exceed four (4) feet in height except as follows: In the RR Single -Family Rural Reserve, R-1 Single -Family Rural Residential and R-2 Single -Family Estate zoning districts, 'ornamental fences", as defined in Section 12-2-2 of this title, of up to six (6) feet in height are permitted in all yards, provided the fence does not encroach upon the Sight Triangle as defined in Section 12-2-2 of this code. (Amended Ord. 386, 8/5/09; Amended Ord. 468, 6-6-17; Amended 7/21/20, Ord. 510) 2. On properties located in the I: Industrial zoning district and located outside of the Metropolitan Urban Service Area (MUSA) boundary, the City may approve a fence in the front yard of up to six (6) feet in height through the Commercial Site Plan (CSP) process, provided that: A. The fence is to provide screening for an approved use of the property. B. Landscaping as approved through the Commercial Site Plan shall be utilized to break up the mass of the fence line. (Amended 7/21/20, Ord. 510) C. Fences that are required for screening of ground mounted mechanical equipment, through a required commercial site plan (CSP), may exceed the height otherwise required by City Code, provided that: 1. Location of fencing meets Building Setbacks for a principal structure. 2. Fencing is to screen ground mounted mechanical equipment. 3. Fencing shall be the minimum height needed to screen the equipment and no taller than ten (10) feet. 4. Fencing shall not be taller than the height of the adjacent building wall. 5. All other screening requirements are met. (Amended 3/21/23, Ord. 550) D. Fence post caps may exceed the maximum height of a fence by up to six inches (6"). (Amended Ord. 561, 5/7/24) 12-7-4: PERFORMANCE STANDARDS: A. Construction and Materials: Every fence shall be constructed in a workmanlike manner. For all fences constructed after the adoption of this title, all posts, supports, and framework shall be placed on the inside of the fence, with the finished side facing the abutting property or street. Chain- link fences shall be constructed in such a manner that the barbed end is at the bottom of the fence. Fences in all districts shall be constructed of materials widely accepted in the fencing industry. No fence may have boards, planks, or panels larger than twelve (12) inches in width except as otherwise permitted by this Chapter. The following materials are expressly prohibited from use as fencing materials: • Plywood boards • Canvas • Plastic sheeting • Metal sheeting including corrugated steel • Chicken wire (except for use on permitted chicken coops) • Drywall • Cardboard • Particle board • Pallets • Chopped wood • Netting • Paper • Reflective surfaces • Jersey barriers and similar products • Silt fences, snow fences, orange construction fencing and similar materials • Any material that is not manufactured or originally intended to be used as fencing Silt fences, orange construction fencing, and similar materials shall only be allowed on construction sites or where deemed necessary to prevent soil erosion. Snow fences shall only be allowed between November 1 sc and April 15th Wire fencing shall only be allowed as a part of a panel fence. These fences shall be rigid and self-supporting, without the need for external guide wires or stakes. Wires shall be woven to run horizontal and vertical and be welded at their intersections to form a checkerboard like design. The wire shall utilize gaps that do not exceed four inches by four inches (4" x 4") in size so as to prevent external footholds and handholds. Each panel shall be framed with wood or decorative metal finishes and be no more than eight feet (8') in length. Unframed rolls of fencing or unframed fence panels shall be prohibited. B. Maintenance: All fences shall be maintained in good condition and vertical position. Any missing, broken, incomplete, or deteriorated sections of fencing material or structural elements shall be replaced with the same quality of material and workmanship. All exterior wood surfaces, other than decay resistant woods, shall be protected from the elements and decay by a protective covering or treatment. If twenty-five percent (25%) of the surface is peeling, cracked, chipped, blistered, or weathered beyond effectiveness, the exterior surface shall be refinished. The entire surface shall be uniformly treated and maintained with the same quality of workmanship. (Amend. 12/6/05, Ord. 317) Any fence not in conformance with this subsection shall be declared a nuisance and repaired so as to be in conformance or removed by the property owner. 12-7-5: BARBED WIRE AND ELECTRIC FENCES: A. A security arm for barbed wire to a maximum of eight (8) feet may be permitted by Conditional Use Permit in industrial or business districts, or in any district when used exclusively for enclosing utility and substation sites. (Amended 7/21/20, Ord. 510) B. Barbed wire and electrical fences may be permitted on residential lots of two and one half (2.5) acres or greater and shall be exclusively for the use of containing farm animals, or pleasure/recreational animals, as defined in City Code. (Amended 7/21/20, Ord. 510) 12-7-6: EXEMPTIONS FROM PROVISIONS: Fences that are for the sole purpose of containing farm animals are not subject to the provision of this title. (Ord. 8PPPPPP, 8-20-2002; amd. 2003 Code; amd. Ord. 314, 10-4-2005) 12-7-7: APPEALS: The Andover Review Committee of the City shall be and is hereby appointed the Board of Design Control for fences. The Board shall review all Fence Permit applications referred to it by the City of Andover Engineering Department upon a determination that the design, materials, or plan may violate the provisions of this Chapter or in situations where no such determination could be made by the Engineering Department. The Board may approve, conditionally approve, or disapprove the design, materials, or plan of any fence referred to it as it may deem necessary to carry out the purpose and intent of this Chapter. Any person aggrieved by the decision of the Andover Review Committee may take an appeal there from to the City Council. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor & Councihnembers CC: Dave Berkowitz, Interim City Administrator �DD-3 Joe Janish, Community Development Director FROM: Jake Griffiths, Associate Planner SUBJECT: Discuss Local Affordable Housing Aid - Planning DATE: September 24, 2024 04 At the August 20, 2024 EDA meeting, the EDA discussed the new Local Affordable Housing Aid coming from the State of Minnesota and directed staff to continue developing potential programs for future discussion. The City of Andover will receive $98,152.49 in Local Affordable Housing Aid in 2024. During the workshop, there was consensus to look into a program which would assist residents with connecting to the city water system among other programs. DISCUSSION City staff evaluated three programs for the potential use of aid dollars: grant for connection to city water, expanded home improvement grant program, and down payment assistance. Based on the availability of funds, estimated administrative costs and the potential impact of each program, City staff are recommending the Council/EDA proceed with only one program at this time — the water connection grant. With the limited funds that are available, downpayment assistance would likely not have a significant impact on housing affordability and would have much higher administrative costs. The restrictions on use of aid dollars also make expanding the home improvement grant program a challenge. Draft Program Guidelines If the EDA wishes to proceed with the water connection grant program, draft program guidelines are included below for review and discussion: Eligible Project Expenses: • Connection to City Water • Plumbing Modifications to Facilitate Connection to City Water • Payment of City Fees Including Cost of Water Meter and Accessories • Property Restoration • Proper Abandonment of Private Well Ineligible Project Expenses: • Any project not listed as an eligible project expense • Payment for work initiated prior to the grant being approved and closed, unless due to an emergency subject to EDA approval. • Homeowner labor or other in-kind contributions to the project. Minimum Project Size: • Eligible Project Expenses must total at least $15,000 to qualify for a grant. • Project must result in the dwelling's connection to the city water system and proper abandonment of all private wells. Grant Amount: • 100% of Eligible Project Expenses, not to exceed $33,000. Eligible Properties: • 1-4 unit owner -occupied properties located within the geographical boundaries of the City of Andover. Properties held in a Trust, Townhomes, and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. Ineligible Properties: • Dwellings with more than 4 units, cooperatives, mobile homes, and non -owner occupied properties. Eligible Recipients: • All recipients must own and occupy the property. Ineligible Recipients: • Including but not limited to: o Businesses o Non -Occupant Co -Borrowers o Non -Legal Residents of the United States Income Limit: • The property owner's household income shall not exceed 115% AMI based on family size. • Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required, income will be determined by the projected gross income for the upcoming 12 months. Credit Requirements: • All real estate taxes must be current. Bids: • Only one estimate is required. All contractors must be properly licensed or registered. Sweat Equity/Homeowner Labor: • Work may be performed by property owners on a "sweat equity" basis, but only the purchase of materials and rental of tools or equipment will be considered an Eligible Project Expense. Recipient Paid Fees: • None Deadline for Work Completion: • All work must be completed within 120 days of the grant closing. Extensions maybe granted due to weather or similar factors. Administrative Costs City staff has engaged with the Center for Energy and Environment (CEE) regarding the administration of potential programs and conducting income verification of applicants. CEE is a Twin Cities based nonprofit that currently administers various aid programs for the cities of Anoka, Blaine, Coon Rapids, and Fridley. CEE is willing to contract with the City to administer potential aid programs as a sort of one stop shop based on the following fees: Annual Administration Fee: $2,500 Origination Fee: $600 per grant closed One Time Program Set -Up Fee: $1,500 Post Inspection Fee: $150 Estimated 2024 Admin Costs: $6,250 (assumes 3 grants are closed in 2024) Estimated 2025 Admin Costs: $4,750 (assumes 3 grants are closed in 2025) In reality the estimated 2024 administrative costs would be lower than $6,250 as the annual administration fee will be pro -rated since we are near the end of the calendar year and the City would likely not be able to close 3 grants by the end of 2024. In exchange for these fees, CEE would intake all applications for aid dollars, work with applicants to obtain financial documents, conduct income verification, work with applicants on securing bids and selecting contractors for work, issuing payments to contractors, ensuring work is completed, etc. The addition of future programs to this contract would also be at a discounted rate and would not require the one-time program set up fee. City staff did reach out to a number of other firms for quotes on administering aid dollars and CEE was by far the best suited and most cost-effective option. Administrative costs would come from the EDA's budget and cannot be funded utilizing aid dollars. There is enough money in the EDA budget to cover the administrative costs of the program for 2024 and 2025. ACTION REQUESTED The City Council is requested to discuss the proposed water connection grant program and provide direction to City staff. �pectfirlly d, Jake Griffiths Associate Planner %F C I T Y 0 F NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Council Members David Berkowitz, Director of Public Works/City Engineer/Interim City Administrator Discuss Anoka County Highway Department Preliminary Roundabout Layout for Crosstown Blvd./161st Ave (24-38) - Engineering September 24, 2024 INTRODUCTION The City Council is requested to review and discuss the attached roundabout layout for Crosstown Boulevard and 161" Avenue. City staff will provide an overview of the attached roundabout for Crosstown Boulevard and 161St Avenue and request feedback from the City Council based on the proposed layout. Comments received will be provided to the Anoka County Highway Department. The open house for this project is tentatively scheduled for Thursday, October 24th from 5 p.m. to 7 p.m. at Refuge of Hope Church. Project timeline for this project is as follows: Preliminary Design: Complete in October 2024 60% Plan Development: Complete in January 2025 Environmental Documentation: Complete in June 2025 Final Plans: Complete in September 2025 Bid Letting: October 2025 Construction in Summer 2026 (Exact timing TBD) COUNCIL ACTION The City Council is requested to review the information provided and discussed regarding the roundabout at Crosstown Boulevard and 161' Avene and provide comments. Respectfully submitted, David Berkowitz, P.E. Attach: Crosstown Boulevard and 161' Avenue Preliminary Roundabout Layout`s CSAH 18 / CSAH 20 INTERSECTION IMPROVEMENT 140' DIAMETER ROUNDABOUT PRELIMINARY LAYOUT SEPTEMBER 2024 Anoka County �<KLJ (,Sambatek MINNESOTA V' Outline Mao of Minneeofo ShOwlnp IOcaflon of the County within the State. .,NG ROADWAY TRAFFIC DIRECTION INPIACF R/W PROPERTY UNE --------- INPIACF EASEMENT ------ CONSTRUCION UAM ROADWAY PAVEMENT SHOULDER PAVEMENT CONCRETETRUCRAPRON .� ADEPATH CONCRETE ADA RAMP I moo PED/NRFARFA CONCRETE WAU (MEDIAN) NRR&GUTTER — STORMWATER TRFAWENT AREA (SILNG NO1 COMPME) EXISTING TYPICAL SECTIONS mrosu x.am rsex rDToS 4 wwaex OTOF. n4xasm.0 nm MW.IM Tw ns. ni.s.se ¢ FSO0 7 1 0 . r\wMsr4 ]Oa9).HIOPfTA 1xN5>30 ` iepMM .11M I2.11l3 PROPOSED TYPICAL SECTIONS M101M aM195MSY 14M13R. Yl6t W'1 m PswvuroM m. 3lau,m Ntn Nal M m3 W iu ro M yN.n � 1¢w n saarx Iwl n4 mwv.almn�mi.is. IaRxie xamxuv) srw mP.m r4 w•liulCSPN 3a MMrx Mal srw sr..apmsumf.romlaM,laxomrhsal ML loz.is.a io n4 Otto.1a 2%WOTiwl y M3os.laomM ul.s.mla4N m. Mnucl 2. M3M.]s3BTa iGms•ocos axN le, xonrxlial M 3N.0 urosM 3039Lu1WNle.50Nx IEOI n4 mlmATmMla.wnla4xM-- Moo.,LF PeOPONO WrYMYfE<rgN ire I ouwxw w.0 • • F�.. / 1�. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Council Members David Berkowitz, Director of Public Works/City Engineer/Interim City Administrator Discuss Street Lighting Options for the Roundabouts at Nightingale Street/Crosstown Blvd. (23-18) & Nightingale Street/ Veterans Memorial Blvd. (23-19) - Engineering September 24, 2024 The City Council is requested to discuss two lighting options for the roundabouts at Nightingale Street/Crosstown Boulevard and NightingaleNeterans Memorial Boulevard. DISCUSSION Street lighting within the City is primarily handled by Connexus Energy with the exception of street lights along Jay Street and Martin Street south of Bunker Lake Boulevard. There are two options for street lighting for the roundabout projects. One option is to have Connexus Energy install the lights and maintenance them through an agreement with the City. The other option is to bid the light installation with the project and maintenance requirements would be through an independent contractor hired by the City. These two options will be discussed more in detail at the meeting. COUNCIL ACTION The City Council is requested to discuss two lighting options for the roundabouts at Nightingale Street/Crosstown Boulevard and Nightingale/Veterans Memorial Boulevard and provide staff direction on how to proceed. Respectfully submitted, rD'�P-C David Berkowitz, P.E. Attach: Draft Lighting Plan for the Nightingale Roundabouts County Road 18 LEGEND LIGFI NNG .11 TYPE 500 'T L5'NYL WITH 3-1/C 8 AVG SEE SHEET 109 MATCH LIKE STA. 104100 NL I -' IC 8 AV4 GR. OTHERWISE NOTEDI IIIIUnESS `1� f N GHTINGALE ST NS SERVICE CABINET TYPE u III 1 ',. C.j `-yy n PEDESTAL III �J W \i/ 10 ;T f CR IB 58 C NIGHTINGALE _ 1I1_BEGIN b 009_ .Ay pp yp 3 210 ,.— c. J CR 18 NB,l- S Je III 8 4 J IIIA _ -W, o I/ ° 5 � N / /. W . . r;. f CR 18 S /r LIGHTING SYSTEM W B ANN R DENOTE CURRENT CARRYING CONDUCTORS WIRING DIAGRAM W DENOTES NEUTRAL CCNOUCTOR GROUND NOT SHOWN / 120/240 VOLT N / W 1 �1 ) 8 9 1. THE 1. THE CONTRISHALLBE RESPONSIBLE Ir I r I / f CR IS NB Cd TITIL Ii IES PRIOR FOR LOi 1NGNG ALL UTILITIES 2, TxEWCONTRACTOR SHALL COORDINATE T I 6 5 M1 p v[ a Ww IB PLACEMENT OF CONDUIT AND FWNOATION5 D CONSTRUCTION r1 ACTIVITIES INTHEAREAA.. If 1 3. TAE CONTRACTOR IS RESPPYSEBLE FOR ALL PERMI TS Ui IL ITv �F w.••• III COORDINATION -HD 4. PLL MATERIAL AND WOW SHALL BE IN j/ ACCilli i/ 5. LIGHTINGCUNITSHMUST WINTd IH d 11 MINIMUM CLEARANCE OF 10' FROM OVERHEAD POWER LINES. III III I I SCALE IH FEET 6. ExLOUT IONS OF LIGHT, PEDESTAL, AN SERVICE CABINET FOUNDATIONS AN D® ALL BE STAKED IN THE FIELD FUN ENGINEER APPROVAL. xTxrtNO1�` -,^�� V\V/J` C A T V O F NDOVER Nightingale Street NW Roundabouts 108 OF 113 SHEETS COUNWROAD18 LIGHTING PLAN SP 198-IIC-D03, 5P 198 -]20 -[IOC, CP 23-18, CP 23-19 Is Sp tris[ -_ Nightingale Street NW LEGEND LIGHTI.-. HG ET. .1C 9-00 1.G'HNC Tx RHL -111 C MD ERIST. 8 RHG GR. .0 G . o O O IUHRESS CRHIRMISE NOTE01 2 WW1 SERVICE CfBINEi "E L1 � N PEOESTK I f f VETERANS ME4 BLVD eB VETERANS MEM BLV p Q -+' 1d I % f NIGHTINGALE ST SB f NIGHTINGALE ST SB II n n IS % X X ' %'- 1111111 0 W OA $z ll' I wm ,. WE x 1 X q p e 1 % �,� p PA, END SP 98-124-004 f NIGHTINGALE ST NB ��� 1 X END SP 198-124-003 BEGIN SP 198-124-003\ I I T NB STA 115.34.13 NET STA 105.00.00 '•.1 / _ II f NIGHTINGALE ST NB NB LIGHTING SYSTEM X B AND fl GENOTE CURRENT CARRYING CONDUCTORS WIRNG DIAGRAM W DENOTES NEUTRAL CONDUCTOR FRI. PT 120/240,13V VOLT GROUND NOT SHOWN 1 I 1(}I Y YK X X 4 3 2 1 7 g 9 10 A ��TTNE CONTRACTOR SHALL 8E RESPONSIBLE n ALL UTILITIES PRIOR TOR FORrtLOCATING X X X 2. THE CONTRACTOR SEEALL COORDINATE THE 6 5 Y-vc 3 RVG 11 VETERANS MEM BLVD IS viceccucxT of coNODIT AND FannAn ays I '� \' WIT OixER CONSTRUCTION ACiIVI T TEs IH lH AREACCRESP. 1 1 1 S ISLE POR ISAND UTILITYNS ALL PERMITSTOR Pw+� fi-IF. �. {_ tVf� COORDINATION. 4. ALL MATERIAL AND WEM SXRLL BE 1N ACCORDANCE WIT x TxE H.E.C. I SCALE IN FEEL S. LIOHTING UNITS MUST MAINTAIN A MINIWY CLEARANCE OF 10' FROM f VETERANS MEN BLVD EB,.I, �1 ' ® o so Loo OVERHEAD POWER LINES. G. EXACT LOCATIONS OF LIGHT, PEDESTAL, 1,1 + ANO SERVILE CABINET FWNOAT IDNS SHALL BE STAXED IN THE FIELD FOR END THEIR APPROVAL. 4E . Nightingale Street NW Roundabouts SHEET109 HFA,1 HM.. xe�sm� " ���� C 1 T Y O F NOWR OF 113 SHEETS L6 NIGXTIHGRLE SP 198-024-W3, STREETNVV LIGHTING PLAN SP 198-124-004, CP 23-18, CP 23-19 ES .� SO ASE•_4L_ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councihnembers CC: David D. Berkowitz, Interim City Administrators FROM: Lee Brezinka, Finance Manager SUBJECT: 2025 Special Revenue, Debt Service, Capital Projects, Enterprise & Internal Service Funds Budget Distribution & Discussion DATE September 24, 2024 INTRODUCTION The Council has had several reviews of the 2025 Proposed General Fund Budget that will be supported by the 2025 Tax Levy. The Council did adopt at the September 3rd regular Council meeting a Preliminary 2025 Property Tax Levy & General Fund Budget. The Preliminary 2025 Budget proposes a total property tax levy of $20,404,084: $12,298,182 (60.28%) operational levy, $4,881,034 (23.92%) debt service levy, and $3,224,868 (15.80%) other levies. The 2025 Proposed Property Tax Levy is proposed to increase the City's gross tax levy by 12.75%. That levy will be applied to the City's growing tax base and will reflect a 12.61 % increase in the current City tax rate. The focus of the 2025 Budget and Levy is to address inflationary items, capital replacements, an infusion of funds into the street improvement program, and address staff retention. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2024. This agenda item will focus on all the other City fund budgets, the attachments are in "draft" form. 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: These budgets are self-explanatory except for the Enterprise Funds which are driven by a rate analysis that is part of the Capital Improvement Plan (CIP) Development process. Administration will provide a brief Presentation of the attached "draft" budgets and answer anv questions the Council may have. The Special Revenue Funds (pgs. 1 — 22) 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 followingfunds: 1. Economic Development Authority Fund —fund balance 2. Community Center — ice arena & field house roof replacement 3. Charitable Gambling Fund — increased amount to organizations The Debt Service Funds (pgs. 23 — 40) 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 be discussing with the Council how the overall debt service spreadsheet impacts the individual Debt Service Funds and the proposed 2025 Debt Service Levy. The Capital Project Funds (pgs. 41 — 68) 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 will not be discussing these funds in detail but will ask if the Council has questions of any of the funds. These funds are the primary funds that facilitate the annual Capital Improvement Plan (CIP). The Enterprise Funds (pgs. 69 — 76) are dependent on multiple factors such as community growth and demand for and usage of the service. The Enterprise funds are in line 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 helps facilitate the Enterprise Funds' annual operations and CIP items. Internal Service Funds (pgs. 77 — 82) 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 thefollowingfunds: 1. Central Equipment Fund —maintenance garage 2. Risk Management Fund —insurance management The Council is requested to review the staff report, attachments, receive a presentation, and provide direction to staff. Respectfully submitted, Lee Brezmka Attachments CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET SPECIAL REVENUE FUNDS bEFIN TION: 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 2025 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: Fund Balance, December 31 $ 1,973,431 $ 2,316,284 $ 2,316,284 $ 2,478,986 193,630 616,536 1,560,172 125,618 976,519 3,472,475 3,472,475 5,445,906 906,759 114,131 757,055 254,941 788,436 2,821,322 308,300 3,129,622 $ 2,316,284 Change in Fund Balance $ 342,853 17% 2 195,000 437,500 1,273,000 8,400 856,068 2,769,968 2,769,968 5,086,252 942,630 116,170 407,886 778,917 400,000 2,645,603 308,000 2,953,603 $ 2,132,649 $ (183,635) -8% 195,000 512,500 1,383,000 28,100 965,993 3,084,593 3,084,593 5,400,877 942,630 138,620 425,986 657,117 449,538 2,613,891 195,000 137,500 1,326,000 14,250 869,968 2,542,718 2,542,718 5,021,704 1,009,894 124,420 304,212 920,314 1,008,000 3,366,840 308,000 310,100 2,921,891 3,676,940 $ 2,478,986 $ 162,702 7% $ 1,344,764 $ (1,134,222) -46% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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: Fund Balance, December 31 $ 1,973,431 $ 2,316,284 $ 2,316,284 $ 2,478,986 193,630 616,536 1,560,172 125,618 976,519 3,472,475 3,472,475 5,445,906 906,759 114,131 757,055 254,941 788,436 2,821,322 308,300 3,129,622 $ 2,316,284 Change in Fund Balance $ 342,853 17% 2 195,000 437,500 1,273,000 8,400 856,068 2,769,968 2,769,968 5,086,252 942,630 116,170 407,886 778,917 400,000 2,645,603 308,000 2,953,603 $ 2,132,649 $ (183,635) -8% 195,000 512,500 1,383,000 28,100 965,993 3,084,593 3,084,593 5,400,877 942,630 138,620 425,986 657,117 449,538 2,613,891 195,000 137,500 1,326,000 14,250 869,968 2,542,718 2,542,718 5,021,704 1,009,894 124,420 304,212 920,314 1,008,000 3,366,840 308,000 310,100 2,921,891 3,676,940 $ 2,478,986 $ 162,702 7% $ 1,344,764 $ (1,134,222) -46% City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In $ 196,839 $ 168,503 $ 168,503 $ 193,251 - - 100,000 17,422 15,000 15,000 10,195 2,000 2,000 304 - 384 27,921 17,000 117,384 100,000 15,000 2,000 117,000 Total Revenues and Other Sources: Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In $ 196,839 $ 168,503 $ 168,503 $ 193,251 - - 100,000 17,422 15,000 15,000 10,195 2,000 2,000 304 - 384 27,921 17,000 117,384 100,000 15,000 2,000 117,000 Total Revenues and Other Sources: 27,921 17,000 117,384 117,000 Total Available: 224,760 185,503 285,887 310,251 Expenditures Personal Services 2,986 7,536 7,536 7,536 Supplies and Materials 5,915 19,400 19,400 16,400 Purchased Services 9,114 63,600 65,700 13,100 Other Services and Charges 38,242 13,100 - 171,730 Capital Outlay Total Expenditures: 56,257 103,636 92,636 208,766 Other Uses Transfers Out - - Total Expenditures and Other Uses: 56,257 103,636 92,636 208,766 Fund Balance, December 31 $ 168,503 $ 81,867 $ 193,251 $ 101,485 Change in Fund Balance $ (28,336) $ (86,636) $ 24,748 $ (91,766) -14% -51% 15% -47% 3 Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Highlights 2025 continues the Home Improvement Program to assist in exterior home improvements within the City ($30,000). It's also the first year budgeting for the Local Affordable Housing Aid to assist in funding affordable housing projects and help organizations provide affordable and supportive housing. 2024 continues the Home Improvement Program to assist in exterior home improvements within the City ($30,000). 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 2025 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 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 5 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 n/a n/a n/a Fund: Community Development Block Grant Activity Type/Code: Special Revenue Expenditure Hiahliehts This is a fund created to track the Community Development Block Grant (CDBG) programs. In 2025, 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 2025 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 General Property Taxes 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 $ 1,103,712 $ 1,379,580 $ 1,379,580 $ 1,573,668 154,097 1,443,266 57,713 878,638 2,533,714 155,000 1,213,000 3,000 826,068 r 155,000 1,313,000 15,000 883,600 2,366,600 2,533,714 2,197,068 2,366,600 3,637,426 3,576,648 3,746,180 861,874 105,378 612,579 201,418 176,597 1,957,846 300,000 2,257,846 Fund Balance, December 31 $ 1,379,580 Change in Fund Balance $ 275,868 25% 7 892,245 92,350 249,400 717,967 1,951,962 300,000 2,251,962 $ 1,324,686 $ (54,894) -4% 892,245 111,600 234,400 634,267 1,872,512 300,000 2,172,512 $ 1,573,668 $ 194,088 14% 155,000 1,256,000 5,000 826,068 2,242,068 2,242,068 3,815,736 957,013 103,600 189,400 700,734 1,008,000 2,958,747 300,000 3,258,747 $ 556,989 $ (1,016,679) -65% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes 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 $ 1,103,712 $ 1,379,580 $ 1,379,580 $ 1,573,668 154,097 1,443,266 57,713 878,638 2,533,714 155,000 1,213,000 3,000 826,068 r 155,000 1,313,000 15,000 883,600 2,366,600 2,533,714 2,197,068 2,366,600 3,637,426 3,576,648 3,746,180 861,874 105,378 612,579 201,418 176,597 1,957,846 300,000 2,257,846 Fund Balance, December 31 $ 1,379,580 Change in Fund Balance $ 275,868 25% 7 892,245 92,350 249,400 717,967 1,951,962 300,000 2,251,962 $ 1,324,686 $ (54,894) -4% 892,245 111,600 234,400 634,267 1,872,512 300,000 2,172,512 $ 1,573,668 $ 194,088 14% 155,000 1,256,000 5,000 826,068 2,242,068 2,242,068 3,815,736 957,013 103,600 189,400 700,734 1,008,000 2,958,747 300,000 3,258,747 $ 556,989 $ (1,016,679) -65% Fund: Community Center Activity Type/Code: Special Revenue Expenditure Hiehliahts 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 No major programming changes for 2025 except for the addition of a golf simulator put in one of the under-utilized meeting rooms. 2025 also includes the reroofing of the ice arena and field house ($1,000,000). Department Head: Recreation Facility Manager General Activity Description This fund accounts for the operations of the Andover/YMCA Community Center, particularly the sports complex, ice arena, field house and concession 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. In 2020, an expansion of the Community Center was completed. It includes a multi -sports complex, an additional court added to the field house, senior/teen space, and additional parking. ADOPTED 2025 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 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 $ 182,602 $ 197,827 $ 197,827 $ 179,170 20,304 Actual 1 Adopted Estimate 1 Adopted 1 Description 2023 1 2024 2024 2025 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 $ 182,602 $ 197,827 $ 197,827 $ 179,170 20,304 9,000 10,000 10,000 9,369 1,200 2,000 1,500 29,673 10,200 12,000 11,500 29,673 10,200 12,000 11,500 212,275 208,027 209,827 190,670 8,243 8,557 8,557 9,137 491 3,000 3,000 3,000 5,536 6,000 9,300 6,000 178 9,800 9,800 9,800 14,448 27,357 30,657 27,937 14,448 $ 197,827 Change in Fund Balance $ 15,225 8% I 27,357 30,657 27,937 $ 180,670 $ 179,170 $ 162,733 $ (17,157) $ (18,657) $ (16,437) -9% -9% -9% Fund: Drainage and Mapping Activity Type/Code: Special Revenue Expenditure HiQhliehts 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 10 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 $ 100,887 39,533 4,284 43,817 43,817 144,704 10,202 46 31,953 100 42,301 $ 102,403 40,000 400 40,400 40,400 142,803 10,622 520 29,486 550 41,178 $ 102,403 $ 102,025 40,000 1,000 41,000 41,000 143,403 10,622 520 29,686 550 41,378 40,000 750 40,750 40,750 142,775 11,197 520 30,412 550 42,679 42,301 41,178 41,378 42,679 $ 102,403 $ 1,516 2% $ 101,625 $ (778) -1% $ 102,025 $ (378) 0% $ 100,096 $ (1,929) -2% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 100,887 39,533 4,284 43,817 43,817 144,704 10,202 46 31,953 100 42,301 $ 102,403 40,000 400 40,400 40,400 142,803 10,622 520 29,486 550 41,178 $ 102,403 $ 102,025 40,000 1,000 41,000 41,000 143,403 10,622 520 29,686 550 41,378 40,000 750 40,750 40,750 142,775 11,197 520 30,412 550 42,679 42,301 41,178 41,378 42,679 $ 102,403 $ 1,516 2% $ 101,625 $ (778) -1% $ 102,025 $ (378) 0% $ 100,096 $ (1,929) -2% Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Expenditure Hiehliehts Minimal changes are planned for this fund as monies are set aside for future needs. Fund balance is being set aside for the preparation of the fourth generation water management plan and any additional services that may be needed. Department Head: Assistant City Engineer General Activity Description The function of the Lower Rum River Watershed Management Organization (LRRW MO) 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. 5. Collection of data. 6. Conducting of studies and investigations. 7. Construction of improvements, either in response to petition or on the initiative of the LRRW MO. 8. Levying of taxes and assessments for the financing of the previously mentioned activities and for general administration of the organization. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 12 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 Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Total Expenditures: Other Uses $ 3,248 $ 2,994 $ 2,994 $ 2,994 1,432 12,500 246 50 1,678 12,550 12,500 12,500 12,500 12,500 1,678 12,550 12,500 4,926 15,544 15,494 1,932 1,932 - 3,200 12,500 9,300 12,500 12,500 12,500 15,494 12,500 12,500 Transfers Out - - Total Expenditures and Other Uses: 1,932 12,500 12,500 12,500 Fund Balance, December 31 $ 2,994 $ 3,044 $ 2,994 $ 2,994 Change in Fund Balance $ (254) $ 50 $ - $ - -8% 2% 0% 0% 13 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues Intergovernmental Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Total Expenditures: Other Uses $ 3,248 $ 2,994 $ 2,994 $ 2,994 1,432 12,500 246 50 1,678 12,550 12,500 12,500 12,500 12,500 1,678 12,550 12,500 4,926 15,544 15,494 1,932 1,932 - 3,200 12,500 9,300 12,500 12,500 12,500 15,494 12,500 12,500 Transfers Out - - Total Expenditures and Other Uses: 1,932 12,500 12,500 12,500 Fund Balance, December 31 $ 2,994 $ 3,044 $ 2,994 $ 2,994 Change in Fund Balance $ (254) $ 50 $ - $ - -8% 2% 0% 0% 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). Department Head: Dir of PW I 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 tree sale, coordinate various tree plantings with local organizations like the Eagle Scouts, and monitor preservation and disease tree management grants. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 14 City of Andover Special Revenue Funds Right of Way Management / 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 $ 102,444 $ 139,969 $ 139,969 $ 128,799 65,723 5,150 70,873 26,000 500 26,500 35,000 1,500 36,500 70,873 26,500 36,500 173,317 166,469 176,469 23,454 369 800 425 25,048 8,300 33,348 Fund Balance, December 31 $ 139,969 Change in Fund Balance $ 37,525 37% 15 23,670 900 8,900 2,500 35,970 8,000 43,970 $ 122,499 $ (17,470) -12% 23,670 900 12,600 2,500 39,670 8,000 47,670 $ 128,799 $ (11,170) -8% 35,000 1,000 36,000 36,000 164,799 25,011 900 8,900 2,500 37,311 10,100 47,411 $ 117,388 $ (11,411) -9% Actual 1 1 Adopted Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 102,444 $ 139,969 $ 139,969 $ 128,799 65,723 5,150 70,873 26,000 500 26,500 35,000 1,500 36,500 70,873 26,500 36,500 173,317 166,469 176,469 23,454 369 800 425 25,048 8,300 33,348 Fund Balance, December 31 $ 139,969 Change in Fund Balance $ 37,525 37% 15 23,670 900 8,900 2,500 35,970 8,000 43,970 $ 122,499 $ (17,470) -12% 23,670 900 12,600 2,500 39,670 8,000 47,670 $ 128,799 $ (11,170) -8% 35,000 1,000 36,000 36,000 164,799 25,011 900 8,900 2,500 37,311 10,100 47,411 $ 117,388 $ (11,411) -9% Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue Expenditure Hiehliehts 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 16 City of Andover Special Revenue Funds Charitable Gambling 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 Purchased Services Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 253,398 $ 275,268 $ 275,268 $ 295,777 12,141 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 253,398 $ 275,268 $ 275,268 $ 295,777 12,141 750 3,500 2,500 97,577 30,000 82,009 43,900 109,718 30,750 85,509 46,400 109,718 30,750 85,509 46,400 363,116 306,018 360,777 342,177 87,848 $ 275,268 Change in Fund Balance $ 21,870 9% 17 114 38,000 $ 268,018 $ (7,250) -3% 65,000 43,900 43,900 $ 295,777 $ 298,277 $ 20,509 $ 2,500 7% 1% Fund: Charitable Gambling Activity Type/Code: Special Revenue Expenditure Hiehliehts This fund was created to track the donations received from the Andover Hockey Association and Andover Football Association from their charitable gambling activities. Funding is used towards the Alexandra House, Youth First, Family of Promise, teen programing, etc.. Funding for these expenditures are dependent upon donations. Department Head: Finance Director General Activity Description 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 18 City of Andover Special Revenue Funds Crack Seal & Pavement Seal 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 $ 1,452 $ 1,802 $ 1,802 $ 3,302 13,457 Actual Adopted Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 1,452 $ 1,802 $ 1,802 $ 3,302 13,457 10,000 10,000 10,000 1,471 500 1,500 1,500 14,928 10,500 11,500 11,500 14,928 16,380 14,578 10,500 12,302 10,000 11,500 11,500 13,302 14,802 10,000 10,000 Total Expenditures and Other Uses: 14,578 10,000 10,000 Fund Balance, December 31 $ 1,802 $ 2,302 $ 3,302 Change in Fund Balance $ 350 $ 500 $ 1,500 24% 28% 83% 19 10,000 $ 4,802 $ 1,500 45% Fund: Crack Seal & Pavement Seal ActivityType/Code: Special Revenue Expenditure HiehtiQhts The Crack Seal and Pavement Seal Special Revenue Fund was established in 1996 and is utilized for the first application of crack seal and pavement seal in new developments. Department Head: Dir of PW / City Engineer General Activity Description The Crack Seal and Pavement Seal Special Revenue Fund accounts for contribuitions associated with land development to be used for the respective developments first application of crack seal and pavement seal. Process Used The City has an annual crack seal and pavement seal program. When possible, new developments will be crack sealed and pavement sealed within the first three years of construction. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 20 City of Andover Special Revenue Funds CARES Act / ARPA Funding Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ 28,849 Revenues Intergovernmental 615,104 Investment Income 25,049 Total Revenues: 640,153 Other Sources Transfers In Total Revenues and Other Sources: Total Available: 669,002 640,153 $ 47,938 $ 47,938 $ 400,000 1,600 401,600 400,000 401,600 447,938 449,538 Expenditures Purchased Services 9,225 - - Capital Outlay 611,839 400,000 449,538 Total Expenditures: 621,064 400,000 449,538 Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ Change in Fund Balance $ 621,064 400,000 449,538 47,938 $ 47,938 $ $ 19,089 $ - $ (47,938) $ 66% 0% -100% n/a 21 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 $ 28,849 Revenues Intergovernmental 615,104 Investment Income 25,049 Total Revenues: 640,153 Other Sources Transfers In Total Revenues and Other Sources: Total Available: 669,002 640,153 $ 47,938 $ 47,938 $ 400,000 1,600 401,600 400,000 401,600 447,938 449,538 Expenditures Purchased Services 9,225 - - Capital Outlay 611,839 400,000 449,538 Total Expenditures: 621,064 400,000 449,538 Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ Change in Fund Balance $ 621,064 400,000 449,538 47,938 $ 47,938 $ $ 19,089 $ - $ (47,938) $ 66% 0% -100% n/a 21 Fund: CARES Act / ARPA Funding Activity Type/Code: Special Revenue Expenditure Hi¢hliahts In 2022, the ARPA Funding can be used to: 1. Support public health / safety response 2. Replace public sector revenue loss 3. Water and sewer infrastruction 4. Address negative economic impacts 5. Premium pay for essential workers 6. Broadband infrastructure The current proposal included: Support public health / safety response Water infrastructure Facility maintenance New pedestrian trail $ 200,000 2,075,738 945,875 400,000 $ 3,621,613 Department Head: Finance Director General Activity Description The CARES Act / ARPA Funding Special Revenue Fund accounts for money distributed to local governments to assist with the financial strain caused by COVID-19. Process Used Federal guidance indicates that the City can have discretion to determine what the funds can be used for based on compliance to the guidelines provided. The CARES Act provides that payments from the fund may only be used to cover costs that (1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019; (2) were not accounted for in the budget most recently approved as of March 27, 2020 for the State or government; and (3) were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. ARPA is a $1.9 trillion package that includes direct relief to states, counties, cities, and towns, as well as public utilities, libraries and transit agencies. The City of Andover received approximately $3.6 million in two distributions - July 2021 and July 2022. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 22 CITY OF ANDOVER, MINNESOTA 2025 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. 23 City of Andover Debt Service Funds 2025 Budget Summary - 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 $ 3,491,233 $ 3,819,273 $ 3,819,273 $ 3,635,008 3,740,870 89,027 3,829,897 895,300 4,725,197 8,216,430 3,125,000 1,260, 997 11,160 4,397,157 3,891,710 3,891,710 845,300 4,737,010 8,556,283 3,240,000 1,162, 366 7,200 4,409,566 3,891,710 7,300 3,899,010 845,300 4,744,310 8,563,583 3,240,000 1,162, 366 10,450 4,412,816 60,854 515,759 4,397,157 4,470,420 4,928,575 Fund Balance, December 31 $ 3,819,273 Change in Fund Balance $ 328,040 9% 24 $ 4,085,863 $ 266,590 7% $ 3,635,008 $ (184,265) -5% 4,881,034 4,881,034 854,407 5,735,441 9,370,449 2,980,000 1,267,973 8,400 4,256,373 4,256,373 $ 5,114,076 $ 1,479,068 41% Actual 1 Adopted Estimate 1 Adopted 1 Description 2023 1 2024 2024 2025 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 $ 3,491,233 $ 3,819,273 $ 3,819,273 $ 3,635,008 3,740,870 89,027 3,829,897 895,300 4,725,197 8,216,430 3,125,000 1,260, 997 11,160 4,397,157 3,891,710 3,891,710 845,300 4,737,010 8,556,283 3,240,000 1,162, 366 7,200 4,409,566 3,891,710 7,300 3,899,010 845,300 4,744,310 8,563,583 3,240,000 1,162, 366 10,450 4,412,816 60,854 515,759 4,397,157 4,470,420 4,928,575 Fund Balance, December 31 $ 3,819,273 Change in Fund Balance $ 328,040 9% 24 $ 4,085,863 $ 266,590 7% $ 3,635,008 $ (184,265) -5% 4,881,034 4,881,034 854,407 5,735,441 9,370,449 2,980,000 1,267,973 8,400 4,256,373 4,256,373 $ 5,114,076 $ 1,479,068 41% City of Andover Debt Service Funds Certificates/Capital Notes - 2020A 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 $ 388,814 $ 421,659 $ 421,659 $ 374,158 10,147 384,305 384,305 773,119 421,659 421,659 330,000 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 388,814 $ 421,659 $ 421,659 $ 374,158 10,147 384,305 384,305 773,119 421,659 421,659 330,000 345,000 345,000 20,400 6,900 6,900 1,060 1,200 4,000 351,460 353,100 355,900 Total Expenditures and Other Uses: 351,460 Fund Balance, December 31 $ 421,659 Change in Fund Balance $ 32,845 8% 25 60,854 413,954 $ 7,705 $ (413,954) -98% 65,759 421,659 $ (421,659) $ -100% n/a Fund: 3214 Cost Center: 2020A G.O. Equipment Certificates Activity Type/Code: Debt Service Final payment made in 2024. Department Head: Finance Director General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $1,310,000 of Capital Notes in 2020 to facilitate the purchase of equipment. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 26 City of Andover Debt Service Funds Certificates/Capital Notes - 2021A 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: $ 159,008 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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: $ 159,008 $ 174,728 $ 174,728 $ 185,303 173,575 174,825 174,825 176,715 3,835 - - - 177,410 174,825 174,825 176,715 174,825 174,825 176,715 177,410 336,418 349,553 349,553 362,018 150,000 155,000 155,000 160,000 11,100 8,050 8,050 4,900 590 1,200 1,200 1,200 161,690 164,250 164,250 166,100 161,690 Fund Balance, December 31 $ 174,728 Change in Fund Balance $ 15,720 10% 27 164,250 164,250 166,100 S 185,303 $ 185,303 $ 195,918 S 10,575 $ 10,575 $ 10,615 6% 6% 6% Fund: 3215 Cost Center: 2021A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service r General Activity Description Debt Service is scheduled as listed below: Year Amount 2025 $ 164,900 2026 166,650 $ 331,550 Principal $ 160,000 165,000 $ 325,000 Interest $ 4,900 1,650 $ 6,550 To account for the payment of principal and Interest on long-term debt. Process Used The City issued $630,000 of Capital Notes in 2021 to facilitate the purchase of equipment. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 28 City of Andover Debt Service Funds Certificates/Capital Notes - 2024A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance 1 Actual Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 $ - $ - $ - $ Revenues General Property Taxes - 450,000 450,000 450,000 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: - 450,000 450,000 450,000 Total Available: - 450,000 450,000 450,000 Expenditures Debt Service Principal - - - - Interest - 25,726 Other - 1,200 Total Expenditures: - 26,926 Other Uses Operating Transfers Out 450,000 - Total Expenditures and Other Uses: - 450,000 26,926 Fund Balance, December 31 $ $ 450,000 $ $ 423,074 Change in Fund Balance $ $ 450,000 $ $ 423,074 n/a n/a n/a n/a a Fund: 3216 Cost Center: 2024A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service The projected Debt Service schedule is listed below: Year Amount Principal Interest 2025 $ 25,726 $ - $ 25,726 2026 411,155 380,000 31,155 2027 419,065 400,000 19,065 2028 421,433 415,000 6,433 $ 1,277,379 $ 1,195,000 $ 82,379 Due to the timing of issuance, the 2024 levy amount of $450,000 was transferred into the 2024A GO Equipment Certificate Capital Projects Fund and the amount issued was reduced. General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City is planning to issue $1,195,000 of Capital Notes in 2024 to facilitate the purchase of equipment. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA a City of Andover Debt Service Funds General Obligation Bonds - 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance 1 Actual Adopted 1 Estimate 1 Adopted Description 2023 2024 2024 2025 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 $ 549,438 $ 587,067 608,592 13,883 622,475 45,300 667,775 1,217,213 290,000 334,006 6,140 630,146 612,794 612,794 45,300 658,094 1,245,161 300,000 319,256 1,200 620,456 630,146 620,456 $ 587,067 $ 37,629 7% 31 $ 624,705 $ 37,638 6% $ 587,067 612,794 1,200 613,994 45,300 659,294 1,246,361 300,000 319,256 1,200 620,456 $ 625,905 617,257 617.257 45,300 662,557 1,288,462 315,000 303,881 1,200 620,081 620,456 620,081 $ 625,905 $ 38,838 7%u $ 668,381 $ 42,476 7% Fund: 3304 Cost Center: 2018A G.O. Capital Improvement Plan Bonds Department Head: Finance Director Activit Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2025 $ 618,881 $ 315,000 $ 303,881 2026 622,631 335,000 287,631 2027 620,506 350,000 270,506 2028 626,206 370,000 256,206 2029 624,956 380,000 244,956 2030 623,406 390,000 233,406 2031 621,556 400,000 221,556 2032 624,331 415,000 209,331 2033 621,731 425,000 196,731 2034 623,756 440,000 183,756 2035 620,125 450,000 170,125 2036 620,538 465,000 155,538 2037 620,182 480,000 140,182 2038 619,338 495,000 124,338 2039 622,603 515,000 107,603 2040 619,969 530,000 89,969 2041 621,400 550,000 71,400 2042 621,800 570,000 51,800 2043 616,588 585,000 31,588 2044 620,675 610,000 10,675 $ 12,431,178 $ 9,070,000 $ 3,361,178 The Water and Sanitary Sewer Enterprise Funds will be paying a portion of the annual debt for the new public works facilities. General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $10,000,000 of Capital Improvement Plan bonds in 2018 to facilitate the construction of additional public works facilities. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 32 City of Andover Debt Service Funds General Obligation Bonds - 2012C G.O. Taxable 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 Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 485,879 963,095 1,395 964,490 300,000 1,264,490 1,750,369 960,000 249,281 1,140 1,210,421 $ 539,948 $ 539,948 $ 599,023 973,650 973,650 300,000 1,273,650 1,813,598 985,000 228,000 1,200 1,214,200 973,650 973,650 300,000 1,273,650 1,813,598 985,000 228,000 1,575 1,214,575 1,210,421 1,214,200 1,214,575 $ 539,948 $ 54,069 11% 33 $ 599,398 $ 59,450 11% 300,000 1,269,824 1,868,847 1,005,000 204,356 1,200 1,210,556 1,210,556 $ 599,023 $ 658,291 $ 59,075 $ 59,268 11% 10% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 485,879 963,095 1,395 964,490 300,000 1,264,490 1,750,369 960,000 249,281 1,140 1,210,421 $ 539,948 $ 539,948 $ 599,023 973,650 973,650 300,000 1,273,650 1,813,598 985,000 228,000 1,200 1,214,200 973,650 973,650 300,000 1,273,650 1,813,598 985,000 228,000 1,575 1,214,575 1,210,421 1,214,200 1,214,575 $ 539,948 $ 54,069 11% 33 $ 599,398 $ 59,450 11% 300,000 1,269,824 1,868,847 1,005,000 204,356 1,200 1,210,556 1,210,556 $ 599,023 $ 658,291 $ 59,075 $ 59,268 11% 10% Fund: 3405 Cost Center: 2012C G.O. Abatement Bonds Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2025 $ 1,209,356 $ 1,005,000 $ 204,356 2026 1,208,275 1,030,000 178,275 2027 1,205,250 1,055,000 150,250 2028 1,205,147 1,085,000 120,147 2029 1,212,675 1,125,000 87,675 2030 1,213,400 1,160,000 53,400 2031 1,218,000 1,200,000 18,000 $ 8,472,103 $ 7,660,000 $ 812,103 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 34 City of Andover Debt Service Funds General Obligation Bonds - 2019A G.O. Taxable 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 Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 995,607 1,021,726 27,488 1,049,214 150,000 1,199,214 2,194,821 570,000 536,900 1,140 1,108,040 $ 1,086,781 $ 1,086,781 $ 1,159,614 1,028,783 1,028,783 150,000 1,178,783 2,265, 564 600,000 507,650 1,200 1,108,850 1,028,783 2,900 1,031,683 150,000 1,181,683 2,268,464 600,000 507,650 1,200 1,108,850 1,108, 040 1,108, 850 1,108, 850 $ 1,086,781 $ 91,174 9% 35 $ 1,156,714 $ 69,933 6% $ 1,159,614 $ 72,833 7% 1,018,100 1,018,100 159,107 1,177,207 2,336,821 630,000 476,900 1,200 1,108,100 1,108,100 $ 1,228,721 $ 69,107 6% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 995,607 1,021,726 27,488 1,049,214 150,000 1,199,214 2,194,821 570,000 536,900 1,140 1,108,040 $ 1,086,781 $ 1,086,781 $ 1,159,614 1,028,783 1,028,783 150,000 1,178,783 2,265, 564 600,000 507,650 1,200 1,108,850 1,028,783 2,900 1,031,683 150,000 1,181,683 2,268,464 600,000 507,650 1,200 1,108,850 1,108, 040 1,108, 850 1,108, 850 $ 1,086,781 $ 91,174 9% 35 $ 1,156,714 $ 69,933 6% $ 1,159,614 $ 72,833 7% 1,018,100 1,018,100 159,107 1,177,207 2,336,821 630,000 476,900 1,200 1,108,100 1,108,100 $ 1,228,721 $ 69,107 6% Fund: 3406 Cost Center: 2019A G.O. Taxable Abatement Bonds Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2025 $ 1,106,900 $ 630,000 $ 476,900 2026 1,104,650 660,000 444,650 2027 1,105,775 695,000 410,775 2028 1,100,275 725,000 375,275 2029 1,106,850 765,000 341,850 2030 1,105,650 795,000 310,650 2031 1,103,250 825,000 278,250 2032 1,108,850 860,000 248,850 2033 1,107,675 885,000 222,675 2034 1,105,750 910,000 195,750 2035 1,108,000 940,000 168,000 2036 1,104,425 965,000 139,425 2037 1,105,025 995,000 110,025 2038 1,104,725 1,025,000 79,725 2039 1,103,525 1,055,000 48,525 2040 1,106,350 1,090,000 16,350 $17,687,675 $13,820,000 $ 3,867,675 The portion of park dedication fees collected will be used to offset the debt service levy, not to exceed $1,000,000. Transfers to date are: Year Amount 2020 $ 175,146 2021 202,604 2022 163,143 2023 150,000 $ 690,893 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $15,770,000 of Taxable Abatement Bonds in 2019 to finance the expansion of the community center. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 36 City of Andover Debt Service Funds General Obligation Bonds - 2021A G.O. Street Reconstruction 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 Principal Interest Other Total Expenditures Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 912,487 $ 1,009,090 $ 1,009,090 $ 1,065,163 599,724 32,279 632,003 400,000 1,032,003 1,944,490 825,000 109,310 1,090 935,400 651,658 651,658 350,000 1,001,658 2,010,748 855,000 92,510 1,200 948,710 651,658 649,138 3,200 - 654,858 649,138 350,000 350,000 1,004,858 2,013,948 855,000 92,510 1,275 948,785 999,138 2,064,301 870,000 75,260 1,200 946,460 935,400 948,710 948,785 946,460 $ 1,009,090 $ 96,603 11% 37 $ 1,062,038 $ 52,948 5% $ 1,065,163 $ 56,073 6% $ 1,117,841 $ 52,678 5% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 Principal Interest Other Total Expenditures Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 912,487 $ 1,009,090 $ 1,009,090 $ 1,065,163 599,724 32,279 632,003 400,000 1,032,003 1,944,490 825,000 109,310 1,090 935,400 651,658 651,658 350,000 1,001,658 2,010,748 855,000 92,510 1,200 948,710 651,658 649,138 3,200 - 654,858 649,138 350,000 350,000 1,004,858 2,013,948 855,000 92,510 1,275 948,785 999,138 2,064,301 870,000 75,260 1,200 946,460 935,400 948,710 948,785 946,460 $ 1,009,090 $ 96,603 11% 37 $ 1,062,038 $ 52,948 5% $ 1,065,163 $ 56,073 6% $ 1,117,841 $ 52,678 5% Fund: 3703 Cost Center: 2021A G.O. Street Reconstruction Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2025 $ 945,260 $ 870,000 $ 75,260 2026 942,710 885,000 57,710 2027 944,810 905,000 39,810 2028 951,135 925,000 26,135 2029 946,395 930,000 16,395 2030 945,640 940,000 5,640 $ 5,675,950 $ 5,455,000 $ 220,950 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $7,135,000 of Street Reconstruction Bonds in 2021 to facilitate the reconstruction of streets. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA W City of Andover Debt Service Funds General Obligation Bonds - 2025A G.O. Street Reconstruction Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 $ $ $ $ Revenues General Property Taxes 1,000,000 Other Sources Operating Transfers In - Total Revenues and Other Sources: 1,000,000 Total Available: 1,000,000 Expenditures Debt Service Principal - - - - Interest - - - 176,950 Other - - - 1,200 Total Expenditures: - - - 178,150 Other Uses Operating Transfers Out Total Expenditures and Other Uses: 178,150 Fund Balance, December 31 $ $ $ $ 821,850 Change in Fund Balance $ $ $ $ 821,850 n/a n/a n/a n/a ■ Fund: 3704 Cost Center: 2025A G.O. Street Reconstruction Department Head: Finance Director Activity Type/Code: Debt Service The projected Debt Service schedule is listed below: Year Amount Principal Interest 2025 $ 176,950 $ - $ 176,950 2026 889,810 645,000 244,810 2027 938,730 715,000 223,730 2028 936,255 735,000 201,255 2029 938,273 760,000 178,273 2030 939,711 785,000 154,711 2031 935,263 805,000 130,263 2032 934,090 830,000 104,090 2033 936,205 860,000 76,205 2034 937,108 890,000 47,108 2035 936,100 920,000 16,100 $ 9,498,495 $ 7,945,000 $1,553,495 General Activity Descriotion To account for the payment of principal and interest on long-term debt. Process Used The City is planning to issue $7,945,000 of Street Reconstruction Bonds in 2025 to facilitate the reconstruction of streets. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 40 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET CAPITAL PROJECTS FUNDS DEFINITION: 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. 41 City of Andover Capital Projects Funds 2025 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: $ 38,834,582 $ 38,647,330 2,357,361 100,476 1,114,953 3,473,567 1,830,303 805,958 153,645 9,836,263 708,300 86,059 794,359 2,434,438 100,475 1,301,000 7,571,040 97,500 409,490 295,000 12,208,943 969,854 1,580,000 2,549,854 $ 38,647,330 $ 34,165,520 2,434,438 100,582 1,453,122 7,575,331 307,500 1,680,355 165,717 13,717,045 1,431,854 1,195,000 33,600 2,660,454 3,184,868 70,000 2,187,000 5,693,153 85,000 260,685 740,000 12,220,706 710,100 7,945,000 8,655,100 Total Revenues and Other Sources: 10,630,622 14,758,797 16,377,499 20,875,806 Total Available: 49,465,204 53,406,127 55,024,829 55,041,326 Expenditures Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 - 94,000 Actual Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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: $ 38,834,582 $ 38,647,330 2,357,361 100,476 1,114,953 3,473,567 1,830,303 805,958 153,645 9,836,263 708,300 86,059 794,359 2,434,438 100,475 1,301,000 7,571,040 97,500 409,490 295,000 12,208,943 969,854 1,580,000 2,549,854 $ 38,647,330 $ 34,165,520 2,434,438 100,582 1,453,122 7,575,331 307,500 1,680,355 165,717 13,717,045 1,431,854 1,195,000 33,600 2,660,454 3,184,868 70,000 2,187,000 5,693,153 85,000 260,685 740,000 12,220,706 710,100 7,945,000 8,655,100 Total Revenues and Other Sources: 10,630,622 14,758,797 16,377,499 20,875,806 Total Available: 49,465,204 53,406,127 55,024,829 55,041,326 Expenditures Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 - 94,000 50,000 167,367 8,601,188 7,720,893 7,239,427 14,603,626 1,532,741 13,038,000 12,574,655 3,453,000 10,133,929 20,852,893 19,864,082 18,223,993 683,945 10,817,874 995,227 21,848,120 995,227 568,281 20,859,309 18,792,274 $ 38,647,330 $ 31,558,007 $ 34,165,520 $ 36,249,052 Change in Fund Balance $ (187,252) $ (7,089,323) $ (4,481,810) $ 2,083,532 0% -18% -12% 6% 42 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 Intergovernmental 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 $ 8,196,236 $ 8,464,540 6,250 64,762 421,328 338,138 830,478 300,000 1,130,478 9,326,714 410,474 317,755 728,229 25,000 6,100, 000 25,000 89,205 6,239,205 300,000 6,539,205 15,003,745 195,000 9,340,000 9,535,000 $ 8,464,540 12,000 6,100,000 125,000 832,233 7,069,233 300,000 7,369,233 15,833,773 195,000 9,340,000 9,535,000 133,945 294,227 294,227 862,174 9,829,227 9,829,227 $ 8,464,540 $ 268,304 3% 43 $ 5,174,518 $ (3,290,022) -39% $ 6,004,546 $ (2,459,994) -29% $ 6,004,546 25,000 25,000 92,775 142,775 300,000 442,775 6,447,321 50,000 100,000 150,000 59,174 209,174 $ 6,238,147 $ 233,601 4% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues Special Assessments Intergovernmental 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 $ 8,196,236 $ 8,464,540 6,250 64,762 421,328 338,138 830,478 300,000 1,130,478 9,326,714 410,474 317,755 728,229 25,000 6,100, 000 25,000 89,205 6,239,205 300,000 6,539,205 15,003,745 195,000 9,340,000 9,535,000 $ 8,464,540 12,000 6,100,000 125,000 832,233 7,069,233 300,000 7,369,233 15,833,773 195,000 9,340,000 9,535,000 133,945 294,227 294,227 862,174 9,829,227 9,829,227 $ 8,464,540 $ 268,304 3% 43 $ 5,174,518 $ (3,290,022) -39% $ 6,004,546 $ (2,459,994) -29% $ 6,004,546 25,000 25,000 92,775 142,775 300,000 442,775 6,447,321 50,000 100,000 150,000 59,174 209,174 $ 6,238,147 $ 233,601 4% Fund: 4110 Cost Center: Water Trunk Activity Type/Code: Capital Projects Expenditure Hiehliehts Projects planned for 2025 include: New Development Projects $ 70,000 Water Main Gate Valve Replacement 50,000 Water Main Improvements 30,000 $ 150,000 Projects planned for 2024 include: New Development Projects $ 65,000 Water Main Gate Valve Replacement 100,000 Water Main Improvements 3,000,000 Fiber Optic Conduit Installation 240,000 Rural Reserve - Area Analysis & Sanitary Sewer 30,000 Red Oaks Manor Water Main Replacement 6,100,000 $ 9,535,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. Department Head: City Engineer General Activity Description 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 2025 BUDGET CITY OF ANDOVER. MINNESOTA 44 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: $ 8,207,796 $ 8,956,614 426,211 61,430 487,641 400,000 887,641 20,000 50,000 14,385 84,385 400,000 484,385 9,095,437 9,440,999 1,434 137,389 138,823 138,823 Fund Balance, December 31 $ 8,956,614 Change in Fund Balance $ 748,818 9% 45 335,000 335,000 335,000 $ 9,105,999 $ 149,385 2% $ 8,956,614 100,000 118,510 218,510 400,000 618,510 9,575,124 335,000 335,000 335,000 $ 9,240,124 $ 283,510 3% $ 9,240,124 20,000 50,000 14,960 84,960 400,000 484,960 9,725,084 140,000 140,000 140,000 $ 9,585,084 $ 344,960 4% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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: $ 8,207,796 $ 8,956,614 426,211 61,430 487,641 400,000 887,641 20,000 50,000 14,385 84,385 400,000 484,385 9,095,437 9,440,999 1,434 137,389 138,823 138,823 Fund Balance, December 31 $ 8,956,614 Change in Fund Balance $ 748,818 9% 45 335,000 335,000 335,000 $ 9,105,999 $ 149,385 2% $ 8,956,614 100,000 118,510 218,510 400,000 618,510 9,575,124 335,000 335,000 335,000 $ 9,240,124 $ 283,510 3% $ 9,240,124 20,000 50,000 14,960 84,960 400,000 484,960 9,725,084 140,000 140,000 140,000 $ 9,585,084 $ 344,960 4% Fund: 4120 Cost Center: Sewer Trunk Activity Type/Code: Capital Projects Expenditure Hiehtiehts Projects planned for 2025 include: New Development Projects $ 140,000 Projects planned for 2024 include: New Development Projects $ 135,000 Fiber Optic Conduit Installation 60,000 Rural Reserve - Area Analysis & Sanitary Sewer 45,000 Sanitary Sewer Flow Meters 95,000 $ 335,000 Department Head: City Engineer General Activity Desciotion 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 to determine the proper sizing of pipes and lift stations to process sewage. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 46 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 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 $ 11,450,951 $ 12,495,605 $ 12,495,605 1,717,457 1,105,178 1,844,102 587,019 10,059 5,263,815 8,300 5,272,115 16,723,066 3,906,822 120,639 4,027,461 1,764,438 1,253,000 1,471,040 4,488,478 8,000 4,496,478 16,992,083 6,864,000 ttt 1,764,438 1,438,122 1,393,374 4,595,934 8,000 4,603,934 17,099,539 6,172,427 6,172,427 200,000 200,000 200,000 4,227,461 7,064,000 6,372,427 $ 12,495,605 $ 9,928,083 Change in Fund Balance $ 1,044,654 9% 47 $ (2,567,522) -21% $ 10,727,112 $ (1,768,493) -14% $ 10,727,112 2, 514, 868 2,139,000 5,693,153 10,347,021 10,100 10,357,121 21,084,233 10,288,000 290,000 10,578,000 200,000 10,778,000 $ 10,306,233 $ (420,879) -4% Actual Adopted Estimate 1 Adopted 1 Description 1 2023 1 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income 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 $ 11,450,951 $ 12,495,605 $ 12,495,605 1,717,457 1,105,178 1,844,102 587,019 10,059 5,263,815 8,300 5,272,115 16,723,066 3,906,822 120,639 4,027,461 1,764,438 1,253,000 1,471,040 4,488,478 8,000 4,496,478 16,992,083 6,864,000 ttt 1,764,438 1,438,122 1,393,374 4,595,934 8,000 4,603,934 17,099,539 6,172,427 6,172,427 200,000 200,000 200,000 4,227,461 7,064,000 6,372,427 $ 12,495,605 $ 9,928,083 Change in Fund Balance $ 1,044,654 9% 47 $ (2,567,522) -21% $ 10,727,112 $ (1,768,493) -14% $ 10,727,112 2, 514, 868 2,139,000 5,693,153 10,347,021 10,100 10,357,121 21,084,233 10,288,000 290,000 10,578,000 200,000 10,778,000 $ 10,306,233 $ (420,879) -4% Fund: 4140 Cost Center: Road and Bridge Activity Type/Code: Capital Projects Department Head: City Engineer Expenditure Hiahliehts General Activity Description Some of the major 2025 projects are as follows: The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Annual Street Crack Seal $ 150,000 Pedestrian Trail Maintenance 67,000 Curb, Sidewalk & Ped Ramp Replacement 120,000 Process Used Annual Pavement Markings 98,000 Gravel Road Improvements 22,000 Construction projects are identified by the capital improvement process Mill & Overlay 965,000 and contained in the five-year Capital Improvement Plan (CIP). The Pavement Rejuvenator Application 175,000 council approves the CIP annually, thereby initiating a process of feasibility Street Full Depth Reclamation 2,831,000 study, preparation of plans and specifications, public hearings, ordering of MSA - Intersection Upgrades 4,000,000 the project, bidding the project and construction. MSA - Signal Improvements 750,000 MSA - New & Reconstruct Routes 540,000 This fund also accounts for the pavement management program, which MSA - Trail 290,000 includes annual seal coating, crack sealing and overlays for roads. MSA - Mill & Overlay 550,000 $ 10,578,000 Some of the major 2024 projects are as follows: Annual Street Crack Seal $ 200,000 Pedestrian Trail Maintenance 64,000 Curb, Sidewalk & Ped Ramp Replacement 115,000 Annual Pavement Markings 64,000 Gravel Road Improvements 21,000 Annual Street Reconstruction 1,788,888 Mill & Overlay 165,600 Pavement Rejuvenator Application 150,000 Street Full Depth Reclamation 2,350,000 Rural Reserve - Area Analysis & Sanitary Sewer 75,000 MSA - New & Reconstruct Routes 650,000 MSA - Intersection Upgrades 285,000 MSA - Mill & Overlay 243,939 $ 6,172,427 ------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 48 City of Andover Capital Projects Funds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance 1 Actual Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 1,966,548 $ 2,148,951 14,488 15,000 100,019 - 337,085 253,950 13,920 25,000 465,512 293,950 465,512 2,432,060 22,623 110,486 133,109 150,000 283,109 $ 2,148,951 $ 182,403 9% 293,950 2,442,901 25,000 582,000 607,000 150,000 757,000 $ 1,685,901 $ (463,050) -22% $ 2,148,951 15,000 25,000 605,701 14,000 659,701 659,701 2,808,652 25,000 582,000 607,000 150,000 $ 2,051,652 15,000 126,975 141.975 141,975 2,193,627 25,000 260,000 285,000 159,107 757,000 444,107 $ 2,051,652 $ (97,299) -5% $ 1,749,520 $ (302,132) -15% Fund: 4150 Cost Center: Park Dedication Projects Activity Type/Code: Capital Projects Expenditure Hiehtiehts 2025 Projects include: Annual Miscellaneous Projects Fields of Winslow Cove - New Park Sunshine Park Basketball Court Improvements Anoka County Dog Park Improvements 2024 Projects include: $ 25,000 170,000 65,000 25,000 $ 285,000 Annual Miscellaneous Projects $ 25,000 Pine Hills North - Building / Shelter 425,000 Park Irrigation Improvements 27,000 Hills of Bunker Lake West Park - Parking Lot Paving 130,000 $ 607,000 A portion of park dedication fees collected will be used to offset the debt service levy for the Community Center expansion, not to exceed $1,000,000. 2020 $ 175,146 2021 202,604 2022 163,143 2023 150,000 2024 150,000 2025 159,107 $ 1,000,000 Department Head: City Engineer General Activity Desciption 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 50 City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Investment Income 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 $ 694,265 $ 784,850 $ 784,850 $ 552,350 352,975 355,000 355,000 355,000 12,806 - - - 34,701 7,500 400,482 355,000 362,500 355,000 400,482 355,000 1,094,747 1,139,850 362,500 355,000 1,147,350 907,350 138,372 Actual Adopted Estimate Adopted 1 Description 1 2023 1 2024 1 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Investment Income 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 $ 694,265 $ 784,850 $ 784,850 $ 552,350 352,975 355,000 355,000 355,000 12,806 - - - 34,701 7,500 400,482 355,000 362,500 355,000 400,482 355,000 1,094,747 1,139,850 362,500 355,000 1,147,350 907,350 138,372 287,000 380,000 174,500 171,525 140,000 215,000 85,000 309,897 427,000 595,000 259,500 259,500 309,897 595,000 427,000 $ 784,850 $ 712,850 $ 552,350 $ 647,850 $ 90,585 $ (72,000) $ (232,500) $ 95,500 13% -9% -30% 17% 51 Fund: 4160 Cost Center: Building Fund Activity Type/Code: Capital Projects Expenditure HiehHebts Projects planned for 2025 include: Annual parking lot maintenance Replacement - Emergency Generator FS #2 Replacement - Water Heater ASN Replacement - Fan Coil Unit ASN Replacement - Garage Door Springs FS #2 Replacement - Sunshine Parking Lot Lights City Hall Remodel Projects planned for 2024 include: Annual parking lot maintenance Replacement - Carpet / Tile Replacement - Emergency Generator CH Replacement - Garage Door Springs FS #1 Replacement - Roof Top Package Units 9 - 16 CH City -Wide Facilities Space Analysis City Hall Remodel $ 45,000 35,000 5,000 6,500 18,000 50,000 100,000 $ 259,500 $ 165,000 30,000 70,000 20,000 95,000 115,000 100,000 $ 595,000 Department Head: Finance Director 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 52 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 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 $ 1,026,488 $ 1,135,052 $ 1,135,052 $ 1,270,963 51,342 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues 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 $ 1,026,488 $ 1,135,052 $ 1,135,052 $ 1,270,963 51,342 - - - 69,305 51,950 123,911 25,975 - - - 250,000 120,647 51,950 123,911 275,975 - - 12,000 - 120,647 51,950 135,911 275,975 1,147,135 1,187, 002 1,270,963 1,546,938 12,083 - - - - 230,000 1,600,000 12,083 230,000 1,600,000 1,600,000 12,083 230,000 $ 1,135,052 $ 957,002 $ 1,270,963 $ (53,062) $ 108,564 $ (178,050) $ 135,911 $ (1,324,025) 11% -16% 12% -104% 53 Fund: 4170 Cost Center: Trail & Transportation Activity Type/Code: Capital Projects Expenditure Hiehti¢hts Projects planned for 2025 include: 8' Bituminous Trail along Coon Creek - East to existing trail in Shadowbrook $ 800,000 8' Bituminous Trail along Crosstown Blvd - Xeon St to Prairie Road 800,000 ' $ 1,600,000 ' this segment will only be constructed if funds are available. Projects planned for 2024 include: 8' Bituminous Trail along Crosstown Blvd - Hanson Blvd to Xeon St $ 300,000 8' Bituminous Trail along 7th Ave - 143rd Ave to 7th Ave frontage road 100,000 ARPA Special Revenue Fund (400,000) Department Head: Dir of PW / City Engineer General Activity Description 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 54 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 Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In 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 $ 1,729,350 $ 3,062,213 $ 3,062,213 $ 3,592,686 272,441 1,551,897 93,221 25,333 1,942,892 86,059 2,028,951 300,000 300,000 261,854 561,854 3,758,301 3,624,067 71,856 624,232 696,088 696,088 $ 3,062,213 Change in Fund Balance $ 1,332,863 77% 55 50,000 326,000 376,000 376,000 $ 3,248,067 $ 185,854 6% 300,000 81,957 40,000 31,717 453,674 261,854 33,600 749,128 3,811,341 150,000 68,655 218,655 218,655 $ 3,592,686 $ 530,473 17% 300,000 300,000 300,000 3,892,686 56,500 628,000 684,500 684,500 $ 3,208,186 $ (384,500) -11% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In 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 $ 1,729,350 $ 3,062,213 $ 3,062,213 $ 3,592,686 272,441 1,551,897 93,221 25,333 1,942,892 86,059 2,028,951 300,000 300,000 261,854 561,854 3,758,301 3,624,067 71,856 624,232 696,088 696,088 $ 3,062,213 Change in Fund Balance $ 1,332,863 77% 55 50,000 326,000 376,000 376,000 $ 3,248,067 $ 185,854 6% 300,000 81,957 40,000 31,717 453,674 261,854 33,600 749,128 3,811,341 150,000 68,655 218,655 218,655 $ 3,592,686 $ 530,473 17% 300,000 300,000 300,000 3,892,686 56,500 628,000 684,500 684,500 $ 3,208,186 $ (384,500) -11% Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Expenditure HiQhtiehts Projects outlined in the 2025 - 2029 CIP for year 2025 using the Capital Equipment Reserve Capital Projects Fund include: Replacement - 800 MHz Radios $ 50,000 Replacement - One Ton Truck w/ Plow #134 110,000 Replacement - HPE VMWare Server Hosts 20,000 Replacement - GPS Antenna Survey Unit 28,000 Replacement - Sign Truck #08-408 100,000 Replacement - Mini Split QCTV Control Room 6,500 Replacement - Grass & Rescue Vehicle 335,000 Replacement - Thermal Imaging Cameras 35,000 $ 684,500 Projects outlined in the 2024 - 2028 CIP for year 2024 using the Capital Equipment Reserve Capital Projects Fund include: Replacement - 800 MHz Radios $ 50,000 Replacement - Survey Equipment 36,000 Replacement - Siren Transmitter Equipment 140,000 Replacement - Toro Groundmaster #561 60,000 Replacement - One Ton Truck w/ Plow #569 90,000 $ 376,000 In 2023, a trail machine was advanced funded to be reimbursed from the 2024 General Obligation Equipment Certificate. Department Head: Finance Director General Activity Description Resources for this fund come from residual fund transfers, interest earnings, and property tax (capital) levy. Process Used During the budget processes, it was determined that various capital expenditures were necessary. The Andover Management Team and Andover Vehicle Purchasing Committee reviewed departmental needs and prioritized capital needs. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA W City of Andover Capital Projects Funds 2021A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ Actual 1 Adopted 1 Estimate 1 Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 $ 50,127 $ $ $ Revenues Investment Income 588 Other Sources Transfers In - Total Revenues and Other Sources: 588 Total Available: 50,715 Expenditures Capital Outlay 50,715 Other Uses Operating Transfers Out - Total Expenditures and Other Uses: 50,715 Fund Balance, December 31 $ - $ $ $ Change in Fund Balance $ (50,127) $ $ $ -100% n/a n/a n/a 57 Fund: 4215 Cost Center: 2021A G.O. Equipment Certificates Activity Type/Code: Capital Projects Expenditure Hi2hti2hts The following is a list of equipment purchased with a 2021 G.O Equipment Certificate. Vehicle / Equipment Replacements: New - First Response Vehicle $ 70,000 New - Zero Tum Mower 10,000 Replacement - Large Capacity Mower #585 130,000 New - Dump Truck w/ Snow Removal Equipment 250,000 Replacement - Asphalt Roller 20,000 Replacement - Dump Truck w/ Snow Removal Equipment 255,000 Replacement - Pickup Truck #6 50,000 $ 785,000 Department Head: Finance Director 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 2022 budget process, it was determined that various capital equipment was necessary. ----------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA I City of Andover Capital Projects Funds 2024A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ Revenues Investment Income - Other Sources Transfers In - Bond Proceeds - Total Other Sources: - 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 $ n/a a Actual Adopted 1 Estimate 1 1 Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 $ Revenues Investment Income - Other Sources Transfers In - Bond Proceeds - Total Other Sources: - 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 $ n/a a - 450,000 1,580,000 1,195, 000 1,580,000 1,645,000 1,580,000 1,645,000 1,580,000 1,645,000 94,000 50,000 1,285,000 1,394,000 1,379,000 1,444,000 201,000 201,000 1,580,000 1,645,000 n/a n/a n/a Fund: 4216 Cost Center: 2024A G.O. Equipment Certificates Activity Type/Code: Capital Projects Expenditure Hiahliahts The following is a list of equipment planned to be purchased with a 2024A G.O. Equipment Certificate. Vehicle / Equipment Replacements Replacement - Fire Engine 31 #4800 $ 1,000,000 Replacement - Dump Truck w/ Snow Removal #200 325,000 New - Trail Machine 220,000 $ 1,545,000 The new trail machine was purchased in 2023 with a reimbursement resolution in place to reimburse the Capital Equipment Reserve Capital Projects Fund from the bond proceeds to take advantage of cost savings. Department Head: Finance Director 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 2024 budget process, it was determined that various capital equipment was necessary. ADOPTED 2025 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 Investment Income 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: $ 970,460 $ 985,834 100,476 51,499 104,333 256,308 256,308 1,226,768 240,934 240,934 240,934 Fund Balance, December 31 $ 985,834 Change in Fund Balance $ 15,374 2% 61 100,475 20,000 270,000 390,475 390,475 1,376,309 299,893 800,000 1,099,893 1,099,893 $ 276,416 $ (709,418) -72% $ 985,834 $ 256,916 100,582 Actual 1 Adopted Estimate 1 Adopted Description 2023 1 2024 2024 1 2025 Fund Balance, January 1 Revenues Tax Increments Investment Income 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: $ 970,460 $ 985,834 100,476 51,499 104,333 256,308 256,308 1,226,768 240,934 240,934 240,934 Fund Balance, December 31 $ 985,834 Change in Fund Balance $ 15,374 2% 61 100,475 20,000 270,000 390,475 390,475 1,376,309 299,893 800,000 1,099,893 1,099,893 $ 276,416 $ (709,418) -72% $ 985,834 $ 256,916 100,582 70,000 7,500 7,500 120,000 490,000 228,082 567,500 228,082 567,500 1,213,916 824,416 317,000 359,626 640,000 350,000 957,000 709,626 957,000 709,626 $ 256,916 $ (728,918) -74% $ 114,790 $ (142,126) -55% Fund: 4501 Cost Center: Tax Increment Projects Activity Type/Code: Capital Projects Expenditure liiehtiehts 2025 Budgeted expenditures include: Redevelopment Site Purchases $ 350,000 Pay -As -You -Go Note 70,000 Rental Property Expenditures 130,000 TIF Administration 159,626 $ 709,626 2024 Budgeted expenditures include: Redevelopment Site Purchases $ 800,000 Pay -As -You -Go Note 69,893 Rental Property Expenditures 130,000 TIF Administration 100,000 $ 1,099,893 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. Department Head: Finance Director 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 62 City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income 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: $ 782,840 3,525 35,819 39,344 39,344 822,184 8,513 200,000 208,513 Fund Balance, December 31 $ 613,671 Change in Fund Balance $ (169,169) -22% 63 $ 613,671 $ 613,671 $ 469,171 3,000 2,500 5,500 5,500 619,171 150,000 150,000 $ 469,171 $ (144,500) -24% 3,000 2,500 5,500 5,500 619,171 150,000 150,000 $ 469,171 $ (144,500) -24% 3,000 2,500 5,500 5,500 474,671 150,000 150,000 $ 324,671 $ (144,500) -31% Actual Adopted Estimate Adopted 1 Description 1 2023 1 2024 1 2024 2025 Fund Balance, January 1 Revenues Special Assessments Investment Income 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: $ 782,840 3,525 35,819 39,344 39,344 822,184 8,513 200,000 208,513 Fund Balance, December 31 $ 613,671 Change in Fund Balance $ (169,169) -22% 63 $ 613,671 $ 613,671 $ 469,171 3,000 2,500 5,500 5,500 619,171 150,000 150,000 $ 469,171 $ (144,500) -24% 3,000 2,500 5,500 5,500 619,171 150,000 150,000 $ 469,171 $ (144,500) -24% 3,000 2,500 5,500 5,500 474,671 150,000 150,000 $ 324,671 $ (144,500) -31% Fund: 4601 Cost Center: Permanent Improvement Revolving Activity Type/Code: Capital Projects Expenditure Mehli¢hts No expenditures are planned for 2025. City Council approved the use PIR Funds to help offset the debt service payments related to the 2021A GO Street Reconstruction Bonds. The following transfers are: Operating Transfers 2022 $ 400,000 2023 200,000 2024 150,000 2025 150,000 2026 100,000 2027 100,000 2028 50,000 2029 50,000 $ 1,200,000 Department Head: Finance Director 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 over $19 million of special assessments over the past 17 years. The annual cash flow of this fund is intended to eliminate unfunded projects through effective management of debt payments and project expenditures. Use of these funds for a qualifying project require a 4/5th's vote. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 64 City of Andover Capital Projects Funds 2021A G.O. Street Reconstruction Bonds Statement of Revenues, Expenditures and Changes in Fund Balance 1 Actual Adopted Estimate Adopted Description 2023 1 2024 1 2024 1 2025 Fund Balance, January 1 $ 3,759,521 $ Revenues Investment Income 28,556 Other Sources Transfers In - Total Revenues and Other Sources: 28,556 Total Available: 3,788,077 Expenditures Other Services and Charges 3,788,077 Other Uses Operating Transfers Out - Total Expenditures and Other Uses: 3,788,077 Fund Balance, December 31 $ - $ Change in Fund Balance $ (3,759,521) $ -100% n/a 65 n/a n/a n/a Fund: 4703 Cost Center: 2021A G.O. Street Reconstruction Bonds Activity Type/Code: Capital Projects Expenditure Hiahliehts $7,135,000 in bond proceeds were issued to make improvements to various roads in the City of Andover. This fund was closed in 2023. Department Head: Finance Director General Activity Description This fund was created to account for the reconstruction of the roadways in the City of Andover. The City is issued $7,135,000 G.O. Street Reconstruction Bonds to finance these improvements. Process Used Large projects that require more funding that the annual allocation lead themselves to being financed through a long-term issuance of bonds. Roads are inspected every three years and the road conditions in Andover are deteriorating to the point where an aggressive reconstruction and mill and overlay program is needed to keep the City's roadway infrastructure at a reasonable level. Large areas will have a mill and overlay done to prolong the life of the existing pavement to add another 10 -15 years of life and roads that are to the point of complete failure will be fully reconstructed. ---------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Capital Projects Funds 2025A G.O. Street Reconstruction Bonds 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 - Other Services and Charges - Total Expenditures: - - Other Uses Operating Transfers Out - - Total Expenditures and Other Uses: - - Fund Balance, December 31 $ - $ - Change in Fund Balance $ $ - n/a n/a 67 7,945,000 7,945,000 7,945,000 167,367 3,650,000 3,817,367 3,817,367 $ $ 4,127,633 $ $ 4,127,633 n/a n/a Actual Adopted Estimate 1 Adopted 1 Description 1 2023 1 2024 2024 2025 Fund Balance, January 1 $ $ $ Revenues Investment Income - - Other Sources Bond Proceeds - - Total Revenues and Other Sources: - - Total Available: - - Expenditures Purchased Services - Other Services and Charges - Total Expenditures: - - Other Uses Operating Transfers Out - - Total Expenditures and Other Uses: - - Fund Balance, December 31 $ - $ - Change in Fund Balance $ $ - n/a n/a 67 7,945,000 7,945,000 7,945,000 167,367 3,650,000 3,817,367 3,817,367 $ $ 4,127,633 $ $ 4,127,633 n/a n/a Fund: 4704 Cost Center: 2025A G.O. Street Reconstruction Bonds Activity Type/Code: Capital Projects EEx enditure HiehliQhts It is proposed that $7,945,000 in bond proceeds be issued to make improvements to various roads in the City of Andover. Some of the major projects are as follows: 2025 Bond Issuance Fees $ 167,367 2025 R & B - Annual Street Reconstruction 3,650,000 2026 R & B - Annual Street Reconstruction 4,127,633 $ 7,945,000 Department Head: Finance Director General Activity Description This fund was created to account for the reconstruction of the roadways in the City of Andover. The City is proposing to issue $7,945,000 G.O. Street Reconstruction Bonds to finance these improvements. Process Used Large projects that require more funding that the annual allocation lead themselves to being financed through a long-term issuance of bonds. Roads are inspected every three years and the road conditions in Andover are deteriorating to the point where an aggressive reconstruction and mill and overlay program is needed to keep the City's roadway infrastructure at a reasonable level. Large areas will have a mill and overlay done to prolong the life of the existing pavement to add another 10 -15 years of life and roads that are to the point of complete failure will be fully reconstructed. ADOPTED 2025 BUDGET CITY OF ANDOVER. MINNESOTA 68 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET ENTERPRISE FUNDS DEFINITION: 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. i City of Andover Enterprise Funds 2025 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 Miscellaneous Total Revenues: Other Sources Transfersln 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 $ 12,217,398 7,501,501 482,527 36,544 54,799 8,075,371 133,945 8,225,111 20,442,509 1,283,446 549,843 3,087,804 684,666 775,036 6,380,795 1,019,072 7,399,867 $ 13,042,642 $ 13,042,642 $ 13,042,642 $ 11,426,558 6,464,757 62,500 13,000 44,000 6,584,257 294,227 6,878,484 19, 921,126 1,331,896 547,600 3,447,319 1,935,000 86,807 7,348,622 966,546 8,315,168 $ 11,605,958 Change in Unrestricted Net Assets $ 825,244 $ (1,436,684) 7% -11% 70 6,464,757 62,500 13,000 44,000 6,584,257 294,227 6,878,484 19,921,126 1,331,896 547,600 3,491,719 2,070,000 86,807 7,528,022 966,546 8,494, 568 $ 11,426,558 $ (1,616,084) -12% 6,828,858 62,500 13,000 44,000 6,948,358 174 7,007,532 18,434,090 1,429,120 654,300 3,474,326 364,000 5,921,746 922,480 6,844,226 $ 11,589,864 $ 163,306 1% Actual Adopted 1 Estimate 1 Adopted 1 Description 1 2023 2024 2024 2025 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Miscellaneous Total Revenues: Other Sources Transfersln 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 $ 12,217,398 7,501,501 482,527 36,544 54,799 8,075,371 133,945 8,225,111 20,442,509 1,283,446 549,843 3,087,804 684,666 775,036 6,380,795 1,019,072 7,399,867 $ 13,042,642 $ 13,042,642 $ 13,042,642 $ 11,426,558 6,464,757 62,500 13,000 44,000 6,584,257 294,227 6,878,484 19, 921,126 1,331,896 547,600 3,447,319 1,935,000 86,807 7,348,622 966,546 8,315,168 $ 11,605,958 Change in Unrestricted Net Assets $ 825,244 $ (1,436,684) 7% -11% 70 6,464,757 62,500 13,000 44,000 6,584,257 294,227 6,878,484 19,921,126 1,331,896 547,600 3,491,719 2,070,000 86,807 7,528,022 966,546 8,494, 568 $ 11,426,558 $ (1,616,084) -12% 6,828,858 62,500 13,000 44,000 6,948,358 174 7,007,532 18,434,090 1,429,120 654,300 3,474,326 364,000 5,921,746 922,480 6,844,226 $ 11,589,864 $ 163,306 1% 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 Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets Total Other Sources: 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: $ 6,676,318 $ 7,688,293 $ 7,688,293 $ 6,458,695 4,171,854 Actual 1 Adopted 1 Estimate 1 Adopted Description 2023 2024 2024 2025 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets Total Other Sources: 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: $ 6,676,318 $ 7,688,293 $ 7,688,293 $ 6,458,695 4,171,854 3,072,905 3,072,905 3,233,323 271,922 30,000 30,000 30,000 36,544 13,000 13,000 13,000 54,799 44,000 44,000 44,000 4,535,119 3,159,905 3,159,905 3,320,323 133,945 15,795 149,740 4,684,859 11,361,177 690,134 514,545 1,105,216 122,794 775,036 3,207,725 465,159 3,672,884 Unrestricted Net Assets, December 31 $ 7,688,293 Change in Unrestricted Net Assets $ 1,011,975 15% 71 294,227 294,227 3,454,132 11,142,425 601,035 472,800 1,293,775 1,675,000 86,807 4,129,417 447,280 4,576,697 $ 6,565,728 $ (1,122,565) -15% 294,227 294,227 3,454,132 11,142,425 601,035 472,800 1,332,475 1,743,333 86,807 4,236,450 447,280 4,683,730 59,174 59,174 3,379,497 9,838,192 639,308 579,000 1,246,972 264,000 2,729,280 404,312 3,133,592 $ 6,458,695 $ 6,704,600 $ (1,229,598) $ 245,905 -16% 4% Fund: 5100 Cost Center: Water Activity Type/Code: Enterprise Fund Expenditure Hi¢hRehts 2025 includes a backup generator at Well #9 ($165,000), a replacement pickup ($70,000), SCADA system replacement ($17,000) and the placement of security camera at well houses ($12,000). 2024 includes the mitigation of radon in the water treatment plant ($1,345,500), WTP plate settler replacement ($180,000), and additional plant and well house upgrades and equipment. The Water Fund will be paying a portion of the annual debt ($22,650) for the new public works facility. Department Head: Utility Supervisor 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 72 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 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 Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 4,119,534 $ 3,855,087 2,643,592 151,519 2,795,111 2,721,544 30,000 2,751,544 $ 3,855,087 $ 3,521,291 2,721,544 30,000 2,751,544 2,901,238 30,000 2,931,238 2,795,111 2,751,544 2,751,544 2,931,238 6,914,645 6,606,631 6,606,631 6,452,529 349,339 19,294 1,826,326 349,092 2,544,051 515,507 3,059,558 $ 3,855,087 $ (264,447) -6% 73 439,757 39,800 1,914,581 155,000 2,549,138 499,169 3,048,307 $ 3,558,324 $ (296,763) -8% 439,757 39,800 1,918,281 188,333 2,586,171 499,169 3,085,340 $ 3,521,291 $ (333,796) -9% 476,638 40,300 1,978,444 100,000 2,595,382 500,302 3,095,684 $ 3,356,845 $ (164,446) -5% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 4,119,534 $ 3,855,087 2,643,592 151,519 2,795,111 2,721,544 30,000 2,751,544 $ 3,855,087 $ 3,521,291 2,721,544 30,000 2,751,544 2,901,238 30,000 2,931,238 2,795,111 2,751,544 2,751,544 2,931,238 6,914,645 6,606,631 6,606,631 6,452,529 349,339 19,294 1,826,326 349,092 2,544,051 515,507 3,059,558 $ 3,855,087 $ (264,447) -6% 73 439,757 39,800 1,914,581 155,000 2,549,138 499,169 3,048,307 $ 3,558,324 $ (296,763) -8% 439,757 39,800 1,918,281 188,333 2,586,171 499,169 3,085,340 $ 3,521,291 $ (333,796) -9% 476,638 40,300 1,978,444 100,000 2,595,382 500,302 3,095,684 $ 3,356,845 $ (164,446) -5% Fund: 5200 Cost Center: Sanitary Sewer Activity Type/Code: Enterprise Fund Expenditure HfQhliehts No major changes planned for 2025. Limited supplies and shortages continue to drive costs up. Municipal Wastewater Charge increased 3.2%. Capital outlay Includes the replacement of lift stations pumps ($100,000). The Sanitary Sewer Fund will be paying a portion of the annual debt ($22,650) for the new public works facility. Department Head: Utility Supervisor General Activity Descintion 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 1/1 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 74 City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets 1 Actual Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 1,421,546 686,055 59,086 745,141 745,141 2,166,687 243,973 16,004 156,262 212,780 629,019 38,406 667,425 $ 1,499,262 $ 77,716 5% 75 $ 1,499,262 670,308 2,500 672,808 672,808 2,172,070 291,104 35,000 238,963 105,000 20,097 690,164 $ 1,481,906 $ (17,356) _1% $ 1,499,262 670,308 2,500 672,808 672,808 2,172,070 291,104 35,000 240,963 138,334 705,401 20,097 725,498 $ 1,446,572 $ (52,690) -4% $ 1,446,572 694,297 2,500 696,797 696,797 2,143,369 313,174 35,000 248,910 597,084 17,866 614,950 $ 1,528,419 $ 81,847 6% Fund: 5300 Cost Center: Storm Sewer Activity Type/Code: Enterprise Fund Expenditure Iliehliehts No major changes planned for 2025. Limited supplies and shortages continue to drive costs up. Capital outlay in 2024 includes an allocation of a purchase of a dump truck used to haul heavy equipment and materials around town. Department Head: Utility Supervisor 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 76 CITY OF ANDOVER, MINNESOTA 2025 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. 77 City of Andover Internal Service Funds 2025 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 Change in Unrestricted Net Assets $ 770,306 1,827,850 32,646 29,370 1,889,866 245,000 2,134, 866 2,905,172 623,610 433,791 637,936 1,695,337 1,695,337 $ 1,209,835 $ 439,529 57% 78 $ 1,209,835 $ 1,209,835 $ 1,268,093 1,885,225 4,000 1,889,225 1,889,225 3,099,060 651,538 507,420 680,509 1,839,467 1,839,467 $ 1,259,593 $ 49,758 4% 1,885,225 4,000 1,889,225 1,889,225 3,099,060 655,538 507,420 668,009 1,830,967 1,830,967 $ 1,268,093 $ 58,258 5% 1,965,601 4,000 1,969,601 1,969,601 3,237,694 695,919 522,920 703,093 1,921,932 1,921,932 $ 1,315,762 $ 47,669 4% Actual 1 Adopted Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 770,306 1,827,850 32,646 29,370 1,889,866 245,000 2,134, 866 2,905,172 623,610 433,791 637,936 1,695,337 1,695,337 $ 1,209,835 $ 439,529 57% 78 $ 1,209,835 $ 1,209,835 $ 1,268,093 1,885,225 4,000 1,889,225 1,889,225 3,099,060 651,538 507,420 680,509 1,839,467 1,839,467 $ 1,259,593 $ 49,758 4% 1,885,225 4,000 1,889,225 1,889,225 3,099,060 655,538 507,420 668,009 1,830,967 1,830,967 $ 1,268,093 $ 58,258 5% 1,965,601 4,000 1,969,601 1,969,601 3,237,694 695,919 522,920 703,093 1,921,932 1,921,932 $ 1,315,762 $ 47,669 4% 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 $ 216,811 $ 470,498 992,300 11,838 2,962 1,007,100 245,000 1,252,100 1,468,911 1,141,143 2,000 1,143,143 1,143,143 1,613,641 $ 470,498 1,141,143 2,000 1,143,143 1,143,143 1,613,641 $ 493,957 1,175,380 2,000 1,177, 380 1,177,380 1,671,337 383,636 Actual Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 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 $ 216,811 $ 470,498 992,300 11,838 2,962 1,007,100 245,000 1,252,100 1,468,911 1,141,143 2,000 1,143,143 1,143,143 1,613,641 $ 470,498 1,141,143 2,000 1,143,143 1,143,143 1,613,641 $ 493,957 1,175,380 2,000 1,177, 380 1,177,380 1,671,337 383,636 393,905 393,905 426,628 400,875 476,620 476,620 490,620 213,902 249,159 249,159 259,243 998,413 1,119,684 1,119, 684 1,176, 491 998,413 $ 470,498 $ 253,687 117% 79 1,119,684 $ 493,957 $ 23,459 5% 1,119,684 $ 493,957 $ 23,459 5% 1,176,491 $ 494,846 $ 889 0% Fund: 6100 Cost Center: Central Equipment Activity Type/Code: Internal Service Fund Expenditure Hialiliahts In 2025, the cost of fuel, replacement parts and outside repairs continue to drive the increase over last year. Costs to various departments was increased 3% to help offset the rising costs. In 2024, the cost of fuel, replacement parts and outside repairs continue to drive the increase over last year. Costs to various departments was increased 15% to help offset the rising costs. 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 bodywork. All work; except automatic transmission overhauls, major engine and major bodywork 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA wi City of Andover Internal Service Funds Risk Management 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 Change in Unrestricted Net Assets $ 553,495 $ 739,337 $ 739,337 $ 774,136 835,550 744,082 20,808 2,000 26,408 - 882,766 746,082 882,766 1,436,261 239,974 32,916 424,034 696,924 696,924 $ 739,337 $ 185,842 34% a 746,082 1,485,419 257,633 30,800 431,350 719,783 719,783 $ 765,636 $ 26,299 4% 744,082 Actual 1 Adopted 1 Estimate 1 Adopted 1 -Description 2023 2024 2024 2025 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 $ 553,495 $ 739,337 $ 739,337 $ 774,136 835,550 744,082 20,808 2,000 26,408 - 882,766 746,082 882,766 1,436,261 239,974 32,916 424,034 696,924 696,924 $ 739,337 $ 185,842 34% a 746,082 1,485,419 257,633 30,800 431,350 719,783 719,783 $ 765,636 $ 26,299 4% 744,082 790,221 2,000 2,000 746,082 792,221 746,082 1,485,419 261,633 30,800 418,850 711,283 711,283 $ 774,136 $ 34,799 5% 792,221 1,566,357 269,291 32,300 443,850 745,441 745,441 $ 820,916 $ 46,780 6% Fund: 6200 Cost Center: Risk Management Activity Type/Code: Internal Service Fund Expenditure If!iehliahts In 2024, property insurance premiums continue to rise as well as the City's contribution to a high deductible health insurance plan. Department Head: Finance Director General Activity Desciation 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 2025 BUDGET CITY OF ANDOVER, MINNESOTA 69 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Council Members CC: David D. Berkowitz, Interim City Administrator FROM: Lee Brezinka, Finance Manager SUBJECT: Discuss 2024 GO Equipment and 2025 GO Street Reconstruction Bonds DATE: September 24, 2024 INTRODUCTION As part of the 2024-2028 Capital Improvement Plan (CIP) and the adopted 2024 Budget, the City approved the issuance of bonds for various equipment purchases. As part of the 2025-2029 CIP, the City is contemplating the issuance of bonds for street reconstruction improvements. An equipment bond was approved as part of the 2024 Operating Budget and was part of the 2024 Debt Service Levy approved on December 5'", 2023. A street reconstruction bond is being contemplated as part of the 2025 Operating Budget and Levy and was approved as part of the 2025-2029 CIP on September 17, 2024. If the bonds were combined into one sale, the City would save about $50,000 in issuance cost, in addition to any inflationary costs that could go up next year. This is similar to what the City did in 2021 for an equipment and street reconstruction bond approved in the 2022 Operating Budget. The process started in October 2021 and the sale of bonds was awarded in December 2021. The same process would take place in 2024, starting October 15, 2024, and awarding the sale of bonds on December 17, 2024. ACTION REQUESTED The Andover City Council is requested to provide direction to staff. Respectfully submitted, V�/w �-,�- Lee Brezinka