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Home My WebLink AboutBudget - 20152015 Annual Operating Budget n 1685 Crosstown Blvd NW, Andover, MN 55304 Phone: (763) 755-5100 * Fax: (763) 755-8923 www.andovermn.gov WW i .._ f 4- CITY OF ANDOVER 2015 Annual Operating Budget Table of Contents (click on description for direct link) Introduction General Fund (Continued) Public Official Listing.................................................................................... 1 Facilities Management.................................................................................... 70 OrganizationalChart ....................................................................................... 2 Police Protection ............................................................................................. 71 BudgetMessage.............................................................................................. 3 Fire Protection................................................................................................ 72 City Council Resolution Adopting Budget ..................................................... 27 Protective Inspection...................................................................................... 73 Valuesand Goals............................................................................................ 30 Civil Defense.................................................................................................. 74 BudgetDevelopment Process......................................................................... 31 Animal Control............................................................................................... 75 2015 Budget Development Calendar.............................................................. 32 Streets & Highways........................................................................................ 76 Accounting, Auditing and Financial Reporting Policy ................................... 34 Snow & Ice..................................................................................................... 77 OperatingBudget Policy................................................................................. 35 Street Signs..................................................................................................... 78 RevenuePolicy............................................................................................... 37 Traffic Signals................................................................................................ 79 CapitalImprovement Policy........................................................................... 37 Street Lighting................................................................................................ 80 DebtAdministration....................................................................................... 38 Street Lights Billed ......................................................................................... 81 RevenueProjections....................................................................................... 40 Parks & Recreation ......................................................................................... 82 2015 Budget Summary by Fund Type............................................................ 45 Recycling........................................................................................................ 83 2015 Budget Summary — Revenues and Expenditures Fund Summary.......... 46 Unallocated..................................................................................................... 84 2015 Budget Summary — Revenues and Expenditures All Funds .................. 47 Special Revenue Funds 2015 Budget Summary — Revenues and Expenditures by Fund Type ............ 48 Definition........................................................................................................ 85 Revenue Comparison — General Fund............................................................ 49 Statement of Revenues, Expenditures and Changes in Fund Balance — All Expenditure Comparison — General Fund ....................................................... 50 Special Revenue Funds............................................................................ 87 Expenditure Budget Summary — By Department — General Fund .................. 51 Economic Development Authority Fund 2015 FTE Summary........................................................................................ 52 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 88 2015 Capital Improvement Budget................................................................. 53 Fund Overview........................................................................................ 89 General Fund Community Development Block Grant Fund Definition........................................................................................................ 55 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 90 Statement of Revenues, Expenditures and Changes in Fund Balance ............ 57 Fund Overview........................................................................................ 91 Mayor & Council............................................................................................ 58 Community Center Fund Administration................................................................................................ 59 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 92 Newsletter....................................................................................................... 60 Fund Overview........................................................................................ 93 Human Resources........................................................................................... 61 Drainage and Mapping Fund Attorney.......................................................................................................... 62 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 94 CityClerk....................................................................................................... 63 Fund Overview........................................................................................ 95 Elections......................................................................................................... 64 Lower Rum River Watershed Fund Financial Administration................................................................................ 65 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 96 Assessing........................................................................................................ 66 Fund Overview........................................................................................ 97 Information Systems....................................................................................... 67 Forestry Fund Planning and Zoning....................................................................................... 68 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 98 Engineering..................................................................................................... 69 Fund Overview ........................................................................................ 99 CITY OF ANDOVER 2015 Annual Operating Budget Table of Contents (click on description for direct link) Special Revenue Funds (Continued) Debt Service Funds (Continued) Right of Way Management / Utility Fund Tax Increment Bonds — 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 100 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 126 FundOverview........................................................................................ 101 Fund Overview........................................................................................ 127 Charitable Gambling Fund Permanent Improvement Revolving Bonds — 2010A G.O. PIR Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 102 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 128 FundOverview........................................................................................ 103 Fund Overview........................................................................................ 129 Construction Seal Coating Fund State Aid Bonds — 2009A G.O. State Aid Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 104 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 130 FundOverview........................................................................................ 105 Fund Overview........................................................................................ 131 Debt Service Funds General Obligation Bonds — 2010A G.O. Open Space Referendum Bonds Definition........................................................................................................ 107 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 132 Statement of Revenues, Expenditures and Changes in Fund Balance — All Fund Overview........................................................................................ 133 Debt Service Funds.................................................................................. 109 Capital Projects Funds Certificates / Capital Notes — 2011A G.O. Equipment Certificate Definition........................................................................................................ 135 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 110 Statement of Revenues, Expenditures and Changes in Fund Balance — All FundOverview........................................................................................ 111 Capital Projects Funds............................................................................. 137 Certificates / Capital Notes — 2012A G.O. Equipment Certificate Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 112 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 138 FundOverview........................................................................................ 113 Fund Overview........................................................................................ 139 Certificates / Capital Notes — 2014 G.O. Equipment Certificate Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 114 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 140 FundOverview........................................................................................ 115 Fund Overview........................................................................................ 141 General Obligation Bonds — 2004A G.O. Capital Improvement Bonds Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 116 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 142 FundOverview........................................................................................ 117 Fund Overview........................................................................................ 143 General Obligation Bonds — 2012B G.O. Capital Improv Refunding Bonds Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 118 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 144 FundOverview........................................................................................ 119 Fund Overview........................................................................................ 145 Lease Revenue Bonds — 2004 EDA Public Facility Lease Revenue Bonds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance ..... 120 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 146 FundOverview........................................................................................ 121 Fund Overview........................................................................................ 147 Lease Revenue Bonds — 2006 EDA Public Fac Lease Rev Refunding Bonds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 122 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 148 FundOverview........................................................................................ 123 Fund Overview........................................................................................ 149 Lease Revenue Bonds — 2007 EDA Public Fac Lease Rev Refunding Bonds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance ..... 124 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 150 FundOverview........................................................................................ 125 Fund Overview........................................................................................ 151 CITY OF ANDOVER 2015 Annual Operating Budget Table of Contents (click on description for direct link) Capital Projects Funds (Continued) Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... 2012A G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... 2014 G.O Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Enterprise Funds Definition....................................................................................................... Statement of Revenues, Expenditures and Changes in Retained Earnings — All Enterprise Funds............................................................................... Water Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Sanitary Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Internal Service Fund Definition....................................................................................................... Statement of Revenues, Expenditures and Changes in Fund Balance — All InternalService Funds............................................................................ 167 168 169 170 171 172 173 175 177 Internal Service Fund (Continued) Central Equipment Maintenance Fund 152 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 178 153 Fund Overview........................................................................................ 179 Risk Management 154 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 180 155 Fund Overview........................................................................................ 181 Appendix 156 Budget Year 2015 — Operating Transfers....................................................... 183 157 2015 — 2019 Capital Improvement Plan Development Calendar .................... 184 Capital Improvements Plan 2015-2019.......................................................... 185 158 Summary of Outstanding Bond Issues............................................................ 194 159 Future Debt Service Requirements................................................................. 195 Computation of Legal Debt Margin................................................................ 196 160 Property Tax Levies and Collections.............................................................. 197 161 Special Assessment Levies and Collections................................................... 197 Principal Taxpayers........................................................................................ 198 162 Building Permits, Property Values and Households ....................................... 198 163 Demographics................................................................................................. 199 Miscellaneous Statistical Data........................................................................ 200 165 Glossary of Terms........................................................................................... 201 167 168 169 170 171 172 173 175 177 This page left blank intentionally. CITY OF ANDOVER Adopted 2015 City Budget Michael Gamache Mayor Sheri Bukkila Councilmember Tony Howard Councilmember Michael Kniaht Councilmember Julie Trude Councilmember James Dickinson Citv Administrator / City Clerk David Carlberg Community Development Director David Berkowitz Director of Public Works / City Enaineer Fred Patch Building Official Jerry Streich Fire Chief CITY OF ANDOVER 2015 Organizational Chart Residents Z City Council 2 City Attorney City Administrator AdvisoryBoards Administration Building Inspections City Clerk Engineering Finance Fire Protection Planning Public Works Police Protection Administrative Civil Defense Clerk's Office Engineering Financial Fire Protection Planning & Zoning Streets/Highways Services Services Administration Services Human Resources Protective Elections Right -of -Way Assessing CDBG Snow & Ice Inspections Management Removal Newsletter Animal Control Drainage & Facilities Street Lighting Mapping Management Economic Lower Rum River Unallocated Signage Development Watershed Mgmt Authority Organization Community Forestry Capital Equipment Traffic Signals Center Reserve Charitable Trail & Debt Service Funds Parks & Recreation Gambling Transportation Recycling Construction Unfinanced Projects Water Seal Coating Information Water Trunk Tax Increment Sewer Systems Projects Storm Sewer Building Fund Central Equipment Sewer Trunk Permanent Improvement Revolving Road & Bridge G.O. Capital Notes Park Dedication Risk Projects Management 2 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER. MN.US TO: Mayor, City Council Members and Residents of Andover FROM: Jim Dickinson, City Administrator / Finance Director SUBJECT: Adopted 2015 City Budget DATE: December 16, 2014 INTRODUCTION City Code 1-6-2 C. Major Areas of Accountability requires the City Administrator to submit an annual budget to Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 30, 2014. In response to these requirements, a proposed budget was presented to Council on September 2, 2014 in advance of this deadline. Council held budget -planning sessions on March 25, April 22, May 27, June 24, July 22, and August 26 to discuss budget priorities and adopted the preliminary 2015 City Levy on September 2, 2014. Additional budget discussion was held with the Council on September 23, October 21, and November 25 before the public hearing that was held on December 2, 2014. The Council's final action on adopting the 2015 City Budget and 2015 Levy occurred on December 16, 2014. The official adoption of the 2015 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 30, 2014. This budget document should be viewed as more than just a collection of financial data, but as the financial plan in which the organization will implement and accomplish Council policies, as well as meet the articulated needs of the community and residents. In addition to the financial data contained within, this document includes information on the City organization, describes programs and services, and provides statistical values measuring activity performance and workloads. Most importantly, this budget is a reflection of the City's plans, policies, procedures and objectives regarding services to be provided in 2015. Mayor, Councilmembers, Residents 2015 Adopted City Budget As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of their specific service needs, prioritized spending requests to achieve the most effective operational delivery of services, and then balanced the allocation of the City's human and financial resources against those needs. It has been our goal to accomplish this in a fair, impartial and balanced manner that meets with the approval of Council and the residents we serve. BUDGET GUIDELINES The following are City Council's 2015 Budget Development guidelines established by the City Council on March 4, 2014, used by City Staff while preparing their proposed operating budgets, and presented with a brief description of the outcome of each guideline as part of the budget process: 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness through the use of sustainable revenue sources and operational efficiencies. Note: The Anoka County Assessor taxable market value figures for the City of Andover are reflecting a 17.65% increase in total taxable market value. 2) Continue with the current procurement and financial plan to appropriately expend the bond proceeds generated from the successful 2006 Open Space Referendum. Note: The Open Space Advisory Commission and City Staff have been active pursuing open space purchases. The City Council approved the purchase of the 40 acre Selmer/Blanchette parcel at their September 16th City Council meeting and closing on the purchase occurred on November 21St. Staff are currently negotiating on another parcel with the remaining bond proceeds. 3) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2015 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management and information technology) through targeting revenue enhancements or expenditure limitations in the 2014 adopted General Fund budget. Mayor, Councilmembers, Residents 2015 Adopted City Budget Note: With property tax revenues making up 80% of the total General Fund revenues, cash flow designations approaching 50% would be appropriate and are recommended by the City's auditor. The City also has in place Emergency Fund Balances to stabilize specific situations, but is not intended to provide for a complete solution. 4) A commitment to limit the 2015 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The 2015 Debt Levy is currently at 19.17%. If additional debt issuance is considered in 2015, the debt service impact to future levies would be structured appropriately. 5) A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year -based replacement schedule. Note: The City Vehicle Purchasing Committee performed this analysis, and that committee's recommendations were integrated into the 2015 2019 Capital Improvement Plan (CIP) that was adopted at the October 21, 2014 City Council meeting. 6) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Note: The City continually maintains various financial models to determine the long-term impacts of present day expenditures and financing decisions. Fiscal assumptions are based upon a complex set offinancial data including growth factors, tax capacity valuations, per capita spending and debt ratios. These models were utilized in the development of the 2015 Budget. 7) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. Note: City Council adopted City Council Goals and Values, those goals and values guided the 2015 Budget and CIP development. 8) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns and demands, and to do so in a cost-effective manner. 5 Mayor, Councilmembers, Residents 2015 Adopted City Budget Note: The City Council formally adopted Council Goals and Values. Management, through these goals, pay special attention to fiscal values, commercial & residential development or redevelopment, collaboration opportunities, service delivery and livability/image of the community. SIGNIFICANT EVENTS OF THE CURRENT YEAR Andover was one of the fastest growing cities in terms of population growth in the Twin Cities metropolitan area since the 2000 census through 2006. Since 2006, the pace of residential development has slowed and is attributable to regional and national economic factors. The City has taken a revised outlook on where growth is most likely to occur in contrast to previously determined urban services staging areas. This has required the City to identify alternate locations for sewer supported growth. In 2014, the City issued 52 new single-family building permits with a total valuation of $14,296,964 compared to 98 new single-family building permits with a total valuation of $21,062,892 the prior year. More detailed information is available on City growth later on in this budget message. Some additional noteworthy events/activities that occurred in 2014 include: 1) Ongoing implementation of a single-family rental housing license program to provide property owners/landlords with educational materials and checklists on how to inspect and maintain the exterior of the property, a list of potential ordinance violations that may occur with a rental property, and an exterior inspection of the building and grounds with city staff. This program was authorized by the Andover City Council in 2009 and is reviewed annually, there were close to 340 single family rental licenses issued throughout the City in 2014. 2) In 2014, the City saw a resurgence in new residential development including the development of a 64 lot subdivision known as Country Oaks North, a 4 lot residential subdivision know as Winslow Woods, a 18 lot residential planned unit development known as Carson Ridge, and a 71 lot residential development known as Catchers Creek. 3) In 2013 the City of Andover and City of Anoka, in cooperation with the Anoka County Highway Department, saw the start of the Bunker Lake Boulevard and County Road 7 reconstruction that was financed primarily by a federal grant. A trail was also added to this reconstruction project and was funded by a Metropolitan Council Regional Trail Grant. The construction was completed mid- summer 2014. 6 Mayor, Councilmembers, Residents 2015 Adopted City Budget 4) In 2013 the City welcomed the construction of a new Pizza Ranch restaurant on an abandon Andover Station North commercial parcel. The construction of the restaurant on the abandon site adjacent to the new Wal-Mart significantly improves the aesthetic view of the area and the restaurant was officially open in January 2014. 5) The City continues to work with Dynamic Sealing Technologies Inc. (DSTI), a global leader in the design and manufacturing of rotary unions and swivel joint products. In 2012, the City welcomed a 49,000 sq. ft. facility expansion expected to generate 50 new jobs for the community. DSTI also acquired an adjacent parcel that will allow for another facility expansion of 50,000 sq. ft. in the future, anticipated to start in 2015. In December 2014, the City EDA closed on the sale of another parcel to DSTI, it is envisioned that a separate 100,000 sq ft manufacturing facility will be built on the approximately 7.25 acre parcel; this facility would focus on large product manufacturing, allowing DSTI to expand into additional markets. 6) In 2013 the City EDA negotiated the sale of an Andover Station North commercial/industrial parcel to Measurement Specialties Incorporated, as global designer and manufacturer of sensors and sensor based systems. A December 2013 sale closing was completed on the lot, and the construction of a 52,000 sq. ft. manufacturing facility took place in 2014. A ribbon cutting was held in December 2014 by TE Connectivity Incorporated, during the construction of the facility, Measurement Specialties Incorporated was purchased by TE Connectivity and upon opening approximately 150 jobs will locate to the City of Andover. Talks of a future expansion of the facility with TE Connectivity have already started. 7) The City Economic Development Authority (EDA) acquired the Parkside at Andover Station residential development in late 2011. This development was sold to a developer originally in 2003 and when residential building stalled in 2009, it became a casualty of the poor townhome market. The EDA in 2012, after a brief marketing period, sold the model home in less than 30 days and secured a purchased agreement with Capstone Homes to build 36 single family homes on a significant portion of the site. Capstone Homes completed the construction of the last home in this development in late 2013. The EDA sold other portions of this development to separate developers to construct an advanced/assisted living facility and an eight -unit townhome structure. A final fragment of the original development was sold to a developer in 2014 to be platted into four single family lots. 8) In 2013 the City EDA sold a two acre parcel in the Parkside at Andover Station development area to Cherrywood Advance Living for the construction of a 20 unit advanced living facility. Construction of the Cherrywood of Andover facility started in late 2013 and the facility was open in July 2014. Mayor, Councilmembers, Residents 2015 Adopted City Budget 9) In 2013 the City EDA sold an eight -unit townhome lot in the Parkside at Andover Station development to Capstone Homes for the construction of an eight -unit townhome structure. Construction of the project is expected to occur in spring 2015. With this sale, all that remains in the Parkside at Andover Station development is one four -unit townhome lot. 10) In 2014 the City EDA sold the final fragment of the original Parkside at Andover Station development to Povlitski Properties LLC so the residual parcel could be added to a single family residential subdivision. It is anticipated that the residual parcel will add four single family residential lots. Construction of the project is expected to occur in spring 2015. 11) The City of Andover EDA went through the public hearing process in 2011 to modify the City Development Plan to create redevelopment areas of the community and to facilitate the opportunity to acquire dilapidated and substandard multi -family homes within specified target areas. The EDA was successful in acquiring one 4-plex property in November of 2011 to start the redevelopment process. The EDA was also successful in acquiring a very dated convenience store/gas station in December of 2012 to continue to add to the critical land mass necessary to start marketing for a redevelopment project. Demolition of the convenience store/gas station was started during in the summer of 2013, with the completion of environmental cleaning in 2014. 12) The City purchased a 40 acre parcel from Legacy Christian Academy in 2012. The purpose of the purchase was to develop a park facility that will provide needed ball fields and community park amenities. This new facility started Phase 1 of development in 2013 with the installation of three full size athletic (soccer/football) fields with irrigation, lighting and accompanying parking. The facility was open for limited activities in late summer of 2014. 13) The City secured a lease with Subway LLC in 2012 to operate out of the existing Andover Community Center concessions area in an effort to better utilize the space at the Andover Community Center. The facility was open for business in early 2013 and to date operations have been exceeding expectations. The City felt Subway's commitment to and promotion of healthy eating would be a great fit for the Andover Community Center and YMCA, recent operations is proving that to be correct. 14) In 2014, the City of Andover received The Most Prolific Recycling Program in 2013 award from the Anoka County Board of Commissioners. Andover residents had the highest recycling rate per person for all materials of any Anoka County municipality. In 2014 the City completed the construction of a new Recycling Center. This construction was financed by Anoka County grants in an effort to expand the current recycling opportunities for Anoka County residents. 8 Mayor, Councilmembers, Residents 2015 Adopted City Budget 15) The successful hosting of the City's Annual Business Appreciation Day to recognize and build awareness of the local business community and strengthens relationships with this important element of the Andover community. This event was coordinated through the Community Development Department. 16) The City Open Space Commission, appointed to assist in managing the successful $2,000,000 open space referendum ballot in 2006, continues to review and make recommendations to the City Council on land that should be purchased as permanent open space in the community. The first purchase took place in December 2009 (Martins Meadows), a second purchase in October 2010 (Northwoods Preserve), a third purchase in January 2014 (Aasness) and a fourth purchase in November 2014 (Selmer/Blanchette). It is anticipated that one last parcel will be purchased in 2015. Throughout 2014, the City Parks Department focused on creating nature trails, appropriate signage and accessibility to the open space parcels. 17) The City's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2013 was awarded the Government Finance Officers Association's "Excellence in Financial Reporting Award." The City completes this document internally and recognized significant cost savings in the form of reduced financial consulting fees. This is the twelfth consecutive year receiving the award and it is anticipated that the City's CAFR for the year ended December 31, 2014 will also achieve this award. 18) For the thirteenth year in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2014 Annual Budget. This award recognizes excellence in the preparation of the City's budget document as a policy document, an operations guide, as a financial plan and as a communications device. 19) The City continues to make significant progress on the process of digitally imaging documents retained by the City. The imaging project has helped the City reduce staffing through data storage retrieval efficiencies and eliminated the need for office expansion. 20) The City continues to utilize updates to our financial management software to improve reporting and operating efficiencies. These updates continue to yield reduced personnel costs and more timely reports. In 2014 the City started accepting online and counter credit card payments for various City permits and services. 9 Mayor, Councilmembers, Residents 2015 Adopted City Budget OVERVIEW The Adopted 2015 Budget anticipates General Fund revenues in the amount of $9,876,575 to meet anticipated budgeted expenditures in the amount of $10,338,730, thus a decrease in (use of) fund balance is planned. As a result, total General Fund balance reserves are projected to decrease to 65.6% in 2014 as compared to 72.6% in 2013 in conjunction with corresponding expenditures for those years. The Adopted 2015 General Fund Budget represents an increase in expenditures of $342,355 over last year. Designated capital operating levies increased $40,000 in 2015 bringing the balance to $1,336,968. The 2015 Debt Service Levy includes two equipment notes, capital improvement bonds, abatement bonds and the open space referendum bonds; and increases the City debt ratio to gross City levy to 19.17% from 19.10% for the prior year. The increase in General Fund expenditures is primarily related to the Anoka County Sheriffs contract with an increase in the cost of providing the service, the addition of a full-time public works employee and increasing the number of volunteer fire fighters from 50 to 55. In the past several year's budgets, since 2003, the City has dealt with significant state aid cuts in Market Value Homestead Credit (MVHC) and Local Government Aid (LGA), tight levy limits enacted by the State Legislature that have prevented Andover from capturing any additional tax revenue from the City's previously expanding tax base. The availability of additional tax levy in 2013 was significantly limited by the new market value exclusion program and decreasing taxable market values, but the decertification of a tax increment financing district negated those decreases to a net overall increase of .41%. In 2014, LGA was reinstated for the City and that funding ($73,490) was used to help offset the growing needs of the Road and Bridge Capital Projects Fund for street improvements/replacements. In 2015, the City will be receiving zero LGA funding as notified by the State. General Fund expenditure trends since 2009 are as follows: IE Mayor, Councilmembers, Residents 2015 Adopted City Budget Note: The population figures were estimates by Met Council for each year the corresponding budget was adopted except for 2010, which is from the 2010 census data. The 2015 Adopted Budget provides for an adopted tax capacity rate of 37.044%, which compares to 43.197% for 2014 (this rate comparison excludes the open space and watershed levies). The 2015 decreasing tax capacity rate is reflective of the increasing tax capacity values. Expenditures Tax Capacity Rates Expenditures Before Transfers Population Per Capita 2009 $ 31,446,280 % Change 32.180% n/a 2010 2009 Actual $ 8,538,423 n/a 31,298 $ 272.81 2010 Actual $ 8,573,058 0.41% 30,598 $ 280.18 2011 Actual $ 8,713,796 1.64% 30,847 $ 282.48 2012 Actual $ 8,857,701 1.65% 31,125 $ 284.58 2013 Actual $ 9,455,074 6.74% 31,692 $ 298.34 2014 Estimate $ 10,071,684 6.52% 32,000 $ 314.74 2015 Adopted $ 10,338,730 2.65% 32,250 $ 320.58 Note: The population figures were estimates by Met Council for each year the corresponding budget was adopted except for 2010, which is from the 2010 census data. The 2015 Adopted Budget provides for an adopted tax capacity rate of 37.044%, which compares to 43.197% for 2014 (this rate comparison excludes the open space and watershed levies). The 2015 decreasing tax capacity rate is reflective of the increasing tax capacity values. 60.0'% Tax Ca paci Rates 40.0% 20.0'% 0. W/o 2009 2010 2011 2012 2013 2014 2015 Note: The tax capacity rates do not include the open space and watershed levies. Is Tax Capacity Values Tax Capacity Rates % Change % Change 2009 $ 31,446,280 n/a 32.180% n/a 2010 $ 28,726,619 -8.65% 36.484% 13.37% 2011 $ 26,174,350 -8.88% 38.407% 5.27% 2012 $23,449,581 -10.41% 42.090% 9.59% 2013 $22,569,018 -3.76% 40.721% -3.25% 2014 $ 21,978,322 -2.62% 43.197% 6.08% 2015 $ 25,721,601 17.03% 37.044% -14.24% 60.0'% Tax Ca paci Rates 40.0% 20.0'% 0. W/o 2009 2010 2011 2012 2013 2014 2015 Note: The tax capacity rates do not include the open space and watershed levies. Is Mayor, Councilmembers, Residents 2015 Adopted City Budget Some highlights of the Adopted 2015 Budget are as follows: Capital Projects Levy — The 2015 Budget specifically designates $1,336,968 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($250,000), Road and Bridge ($967,197), Pedestrian Trail Maintenance ($58,271) and Park Projects ($61,500). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases/decreases; with Capital Outlay, Pedestrian Trail Maintenance and Park Levies changed according to the City Council budget guidelines. In the past, state levy restrictions, loss of LGA and MVHC, and reductions in taxable market value has put a burden on the General Fund, thus resulting in these some of these levies staying the same as compared to 2014. Road and Bridge — Under the Capital Projects Levy, a total of $1,025,468 is for transportation programming related to maintaining City streets, roadways and pedestrian trails. This will be the twelfth year that a portion of the Road & Bridge Fund ($58,271) will be dedicated to pedestrian trail maintenance representing approximately 5.68% of that levy. $265,050 is designated to the City's seal coating and crack sealing programs, with the remaining $702,147 dedicated to street overlays pursuant to previous Council direction of designating a one percent tax levy and capturing two percent of new tax capacity growth to transportation infrastructure needs. This commitment was initiated by the City Council in 1997 and increased from one percent to two percent of new tax capacity growth during 2006. As a percentage, this funding commitment represents approximately 9.20% of the Gross Tax Levy and remains the same as the 2014 levy. Park Improvements — Under the Capital Projects Levy, $61,500 is designated to capital projects for park related projects. This level of funding is an annual appropriation to be used to underwrite a wide range of park improvements as recommended by the Park and Recreation Commission and approved by the City Council. This funding is a long-term supplemental source of capital funding for park projects and is separately identified in the City's Five -Year Capital Improvement Plan. The 2015 levy is the same as 2014. • Capital Equipment/Projects — Under the Capital Projects Levy, $250,000 is designated to underwrite a wide range of capital improvement/equipment project expenditures. Through this designation, the City, over time, will be able to build a fund reserve to avoid cash flow "spikes" and address a wide -range of capital improvement needs, such as facility maintenance projects, under a more controlled spending environment. This designated levy is to address a wide -range of facility maintenance and equipment needs. The 2015 levy was increased $40,000 over 2014 to assist in the growing needs of maintaining all the facilities and equipment. 12 Mayor, Councilmembers, Residents 2015 Adopted City Budget Sheriffs Police Contract Services — The Anoka County Sheriff's contract reflects a 3.55% general increase ($100,176). The 2015 Budget maintains the existing 80 hours per day of patrol service, six hours per day of service provided by a Community Service Officer, two Patrol Investigators, School Liaison Officers in the middle and high school, and 50% of a Crime Watch Coordinator's position. Attorney - The City Attorney budget a 2% increase ($3,700) over the 2014 budget. City Attorney criminal prosecutions have increased over 15% since 2005. Council Memberships and Contributions — The following are included as part of the 2015 General Fund budget: ■ North Metro Mayors Association ■ Association of Metropolitan Cities (AMM) ■ Mediation Services ■ YMCA — Water Safety Program ■ Alexandra House ■ Youth First (Program Funding) ■ Northwest Anoka County Community Consortium ■ Teen Center Funding (YMCA) ■ Lee Carlson Central Center for Family Resources $13,709 - membership $ 9,301 - membership $ 3,366 - program contribution $ 8,500 - program contribution $15,328 - program contribution $12,000 - program contribution $10,000 - program contribution $ 8,100 - program contribution $ 1,500 - donation (mental health services) The following memberships/contributions are included as part of the 2015 budget in other funds: ■ Youth First — City Partner Fee ■ Teen Center Funding (YMCA) ■ Alexandra House ■ Senior High Parties ■ Family of Promise ■ Hope for Youth $ 2,000 Charitable Gambling Fund $16,400 Charitable Gambling Fund $ 3,000 Charitable Gambling Fund $ 1,000 Charitable Gambling Fund $ 3,000 Charitable Gambling Fund $ 600 Charitable Gambling Fund 13 - program support - program contribution - donation (domestic abuse programs) - donation (youth programs) - donation (youth programs) - donation (youth programs) Mayor, Councilmembers, Residents 2015 Adopted City Budget ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost Reallocation — The 2015 Budget includes the addition of a Parks Maintenance employee due to the addition of another sports complex and neighborhood parks. A reduction in Parks seasonal staff funding will help offset the cost in 2015. Cost -of -Living Adjustments — The total compensation package for 2015 includes step changes for eligible employees and a 2.0 % cost of living adjustment. Administration and Human Resources continually review position -based salaries in detail to confirm competitiveness with other government entities. For a few positions to remain competitive with other governmental entities, budget has been included for salary adjustments. Health Insurance Costs — Premiums for health insurance will increase by 5.0% due to market conditions and group experience factors. Employer health care contributions are to be maintained at an employer ratio of 76% of the low-end family coverage and 100% of the single coverage. This will be the eighth year the City will be offering a high deductible insurance plan with a health savings account (HSA). CITY GROWTH New institutionaUcommercial/industrial construction did occur in 2014. Cherrywood of Andover opened a 20 unit senior housing facility located at 1889 — 139th Ave NW and TE Connectivity constructed a 52,000 s.f. light manufacturing facility at 1711 — 139th Lane NW. New residential development included the development of a 64 lot subdivision known as Country Oaks North, a 4 lot residential subdivision know as Winslow Woods, a 18 lot residential planned unit development known as Carson Ridge, and a 71 lot residential development known as Catchers Creek. The City currently has a supply of 160 single family urban lots and 18 single family rural lots. There also exists a reasonable supply of lots for a variety of housing options including townhome and condominium units. In 2014, the City issued 52 new single-family building permits with a total valuation of $14,296,964 compared to 98 new single-family building permits with a total valuation of $21,062,892 for the same point in time in the preceding year. The City has not issued any new multi -family dwelling permits in last four years. It is anticipated that residential development will continue to rebound and drive the City's customer base. The 2010 census shows the population at 30,598. 14 Mayor, Councilmembers, Residents 2015 Adopted City Budget The growth within the last several years continues to produce a profound increase in demand for City services and has significantly added to the City's infrastructure and staffing needs. Consequently, this change will result in significant future operational and maintenance costs. The chart below illustrates the significant growth that has occurred since 1995. Growth Factors 1995 2014 Estimate % Change Population 20,497 32,000 56 Housing Units 6,300 10,200 62 Streets (miles) 150 201 34 Cul-de-sacs 155 332 114 Storm Sewer (miles) 18 75 317 Water Main (miles) 35 115 229 Sanitary Sewer (miles) 53 95 79 Parks (Number) 54 68 26 Developed Park Acreage 512 595 16 Trails (miles) 0 37 100 Developed Residential (acres) 7,750 9,486 22 Undeveloped Residential (acres) 14,616 13,010 (11) Fire/Medical Runs 625 1,095 75 Growth Factors 2000 2014 Estimate % Change Calls for Service — Police 9,588 10,319 8 Incident Reports 8,385 9,958 19 Note: Reference Year is 2000 due to database reporting changes. 15 Mayor, Councilmembers, Residents 2015 Adopted City Budget CAPITAL OUTLAY/IMPROVEMENTS Requests for capital outlay/improvements in the Adopted 2015 Budget are funded through a variety of sources including the capital equipment/project levies, Special Revenue and Enterprise Funds, assessments and through the issuance of notes and bonds. Capital equipment and improvements in the Adopted 2015 Budget amounts to $3,602,000. Of that total amount, $256,000 will be funded by the capital equipment/project levy and reserves and the remaining through other funding sources. The City's 2015 - 2019 Capital Improvement Plan (CIP) process was instrumental in producing the outcomes outlined in the 2015 Budget and should be referred to for a detailed analysis of significant capital outlays/improvements. For additional information on all the capital outlay / improvements in the City's 2015 — 2019 CIP, please see the appendix for a brief description of each item and/or go to the City's website at www.andovernm.gov and view the complete document located in the Finance Department section. It should be noted that as equipment and/or park structures are replaced, there isn't necessarily a huge cost savings. For example, replacing a 20 year old play structure with a new one can save money both in time and repairs; but that leaves forty other play structures that become another year older, needing additional time for maintenance. The same scenario is true for replacement equipment, unless there are major innovations to change the way the equipment is used and/or maintained, the savings on reallocated. Notable adopted capital outlay/improvement expenditures include: Parks Department - $50,000 is programmed for improvements to City parks that include updating and repairing play structures, and accessibility improvements to various parks and playgrounds. This will allow the City to replace two play structures that have become maintenance issues and/or no longer meet ADA requirements. With numerous play structures within the City, replacing the older ones will save both time and money during the weekly inspections and repairs (if necessary). $25,000 is budgeted for a park's major repair or replacement that cannot be covered in the normal operations budget. For 2015, the decking on the pedestrian bridges will be replaced. Funding for these projects is through the Capital Projects Levy. Facility Management - $28,000 is budgeted for parking lot maintenance. Parking lots will be evaluated in the spring to determine the appropriate type of maintenance to extend their useful life. Funding for this maintenance project is through the Capital Equipment Reserve Capital Projects Fund. $25,000 is planned for the preparation of a master plan for future public works and community center expansion in 2015. Funding for this project is through the Capital Projects Levy. Park Improvement Projects - $60,000 is planned for bathroom enclosures and a playground at Pine Hills North. $50,000 is budgeted for the development of a master plan for Kelsey Round Lake Park. $25,000 is planned for the installation of sideline fencing along 1St and P 16 Mayor, Councilmembers, Residents 2015 Adopted City Budget baselines at three parks to provide a safer environment for players and spectators. $20,000 is budgeted to start irrigating some of the smaller parks. These are new additions to the park system and will add additional maintenance and staff time to the current Parks Department. Funding for these projects is through the Park Dedication Capital Projects Fund. Fire Services - $18,000 is budgeted for replacing worn turnout gear. This is an annual allotment for the replacement of 8 — 10 sets per year. Replacing all 50 sets is currently not feasible without the help of a grant as in the past. Each year, the gear in the roughest shape will be replaced with the intent of having all of them replaced over a 5 - 6 year span. Funding for this replacement program is through the Capital Equipment Reserve Capital Projects Fund. FUND BALANCE The City adopts fund balance goals to meet short and long-term needs. Fund balance goals are established to provide for cash flow needs, capital purchases, emergency contingencies and other specific needs. The General Fund projected to use $462,155 of fund balance cover operations in 2015. The work done by staff relative to the 2014 revenue and expenditure estimates has achieved the Council 2015 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 45% of planned 2015 General Fund expenditures available from the 2014 budget (the targeted fund balance is approximately $4,652,429). The estimates are also necessary to preserve the following emergency reserve fund balances for core services: ■ Snow Emergency ($100K) - salt and sand needed for an abnormal snowfall season ■ Public Safety ($100K) - police, fire and civil defense unexpected costs ■ Facility Management ($275K) - roofing, HVAC and emergency facility repairs ■ Information Technology ($100K) - phone system and network server emergencies ■ Economic Development ($300K) — TIF Management Fee Migration In the Special Revenue Funds, the Economic Development Authority (EDA) Fund is projected to decrease $144,349 largely due to the decertification of the tax increment finance district in 2012 and 2014 which is charged an administrative fee by the EDA ($110,000). Staffing and expenditures will be migrated over to the General Fund over time. The Charitable Gambling Fund is projected to decrease $15,700 due to the spend down of monies collected in 2014 on qualifying public service organizations. The Right of Way Management / Utility Fund is projected to decrease $20,089 primarily due to the decrease in development activity reducing the amount of fees collected. 17 Mayor, Councilmembers, Residents 2015 Adopted City Budget The Debt Service Funds is projected to increase by $221,843 in 2015. The fund balance of the 2012 G.O. Equipment Certificate is projected to increase ($127,800) due to the timing of when levies are collected and when debt service payments are made. The fund balance of the 2012C G.O. Abatement Bonds Fund is projected to increase ($131,843) due to the timing of when levies are collected and when the debt service payments are made. The fund balance of the 2009A G.O. State Aid Refunding Bonds Fund is projected to decrease ($108,472) due to the final debt service payment being made in February 2015. In the Capital Projects Funds, the Water Trunk Fund is increasing ($86,901) since there are no scheduled improvements planned for 2015. The Sewer Trunk Fund continues to increase ($372,415) with the establishment of the replacement reserve monies. The Road and Bridge Fund is decreasing ($157,327) in 2015 due to the elimination of LGA funding. The Building Fund is decreasing ($194,000) due to the scheduled contract for deed payments relating to the purchase of the site adjacent to the Public Works facility for future expansion. The Tax Increment Projects Fund is decreasing ($490,000) as new redevelopment/economic strategies take place. The Permanent Improvement Revolving Fund is increasing ($53,000) as the debt has been paid off and the assessment revenues continue to be collected. The 2010A G.O. Open Space Referendum Bonds is projected to decrease to zero as the last of the bond proceeds is spent on the preservation of open space. COMMUNITY VISION & GOALS While each budget year appears to only be dealing with the task at hand, the City of Andover, in addition to adopting each year's budget development guidelines, does keep in mind throughout the process the community's slogan, vision statement and short and long term organizational goals that are meant to say who and what the City of Andover is. The city's adopted slogan is "Welcome Home" and the vision statement is "Andover, a safe, growing community in which to live and work which enhances the quality of its citizens' lives through recreational opportunity, quiet neighborhoods, civic involvement, and fiscal and environmental stewardship." The long term organizational goals are: 1. EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES - the City of Andover believes that service to the public is our reason for being, and strives to deliver quality services in a professional and cost-effective manner. 2. FISCAL RESPONSIBILITY - the City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens are to have confidence in government. 18 Mayor, Councilmembers, Residents 2015 Adopted City Budget 3. ETHICS AND INTEGRITY- the City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4. TREATING THE CITIZEN AS OUR CUSTOMER - the City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and integrity. 5. OPEN AND HONEST COMMUNICATION - the City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. The short term (one to five years) organizational goals are: 1. FISCAL GOALS - the City recognizes the following fiscal values as the basis for delivering current and future services to the residents of Andover. A. Assure city financial stability through cost effective services. B. Focus spending on community needs; wants need to be supported by new or redirected sustainable revenues. C. Explore new revenue streams. D. Don't commit dollars today that will commit the City to unsustainable future expenses. 2. COMMERCIAL/RESIDENTIAL DEVELOPMENT/REDEVELOPMENT GOALS - the City wants to be supportive of those invested in or wanting to invest in our community. A. Facilitate upgrades or redevelopment of blighted or underdeveloped commercial/industrial parcels. B. Help stimulate business growth in Andover through more business friendly municipal costs, regulations and support programs. C. Review TIF district expirations; discuss future planning and options available which may include the creation of new TIF districts. D. Develop a business outreach plan to improve City relationships with the business community. E. Continually analyze existing commercial areas to determine if expansion is feasible and seek out new areas to better serve the community. F. Continually evaluate how to meet sewer/water and street needs of any proposed development and redevelopment projects. IE Mayor, Councilmembers, Residents 2015 Adopted City Budget G. Review City development processes to help reduce unnecessary steps, time delays and development costs. H. Review storm water regulations to achieve cost savings at the local level and to help avoid duplicity of regulations that are enforced by another governing body. 3. COLLABORATION GOALS - the City is supportive of collaboration efforts that are cost-effective and improve efficiency in delivering services. A. Rethink how we deliver existing basic city services and seek lower cost with increased productivity. B. New collaboration opportunities must be a win-win for the participating cities. C. Continue to work on developing working relationships with: school district, county, and adjoining cities; the goal being to reduce costs, improve delivery of services, and be as efficient as possible. D. Seek County support on meeting the City's needs relative to transportation, in particular on how improvements to County and City infrastructure can solve traffic problems for our residents, assist existing business, and help attract new businesses. E. Work with waste/garbage haulers to determine if a more efficient garbage collection process for the community can be achieved. F. Develop a system that will effectively coordinate volunteer efforts whether it is in response to local emergencies and disasters, or just for the delivery of basic services. 4. SERVICE DELIVERY GOALS - the City is committed to providing efficient and cost-effective city services. A. Determine if the City should reduce maintenance on parks not used or useable for cost savings; consider elimination of tot lots; focus development on larger parks and an expanded trail system. B. Review the City relationships with the local sports associations to help provide for exceptional program delivery to the community. C. Pursue paperless opportunities whenever possible and feasible. D. Analyze the "administrative fine" process to reduce use of courts, increase local revenues, and improve code compliance. E. Explore opportunities with law enforcement to improve community policing and to make a concerted effort by mentoring or being available to the teen population of the community. F. Pursue local programming during summer or school days for the community youth by effective utilization of the Community Center and the City's relationships with local service organizations. 20 Mayor, Councilmembers, Residents 2015 Adopted City Budget G. Continually review our processes to reduce unnecessary or unwanted service deliveries. H. Discuss employee salaries and the review process with the budget development process. 5. LIVABILITY/IMAGE GOALS - the City recognizes that providing quality basic & desired services enhances the quality of life of our residents. A. Pursue preserving open space when viable and feasible opportunities are available. B. Continue efforts along Hanson Boulevard with promoting sustainable landscaping and by encouraging consistent fence maintenance along roadways. C. Provide a high level of professionalism to the public at all levels of the organization. D. Engage more with various media outlets to tell the City of Andover stories better. E. Pursue a community survey to determine resident support for current city services and programs. F. Be creative in improving and adding amenity options for the residents of Andover. G. Review recent 2010 Census data and use for planning future projects. LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible to ensure the stability of the City's basic services. In light of past state aid reductions and previous years levy limits imposed by the state legislature and the current sporadic onset of levy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing sufficient revenues to fund City services as follows: ♦ Employing a strategy aimed at reducing the City's reliance on the property tax levy to fund basic City services through "sustainable" revenue sources such as special revenues, user fees and fee-for-service transactions. ✓ The City tax rate will decrease in 2015 due primarily to the increase in home market values. City services will continue to be evaluated in terms of identifying all relevant funding sources to underwrite specific service expenditures, promoting alternatives to traditional funding methodologies, operational efficiencies, and encouraging public-private partnerships in service delivery systems. 21 Mayor, Councilmembers, Residents 2015 Adopted City Budget ♦ The use of an appropriate cost accounting structure that will lead to the creation of individual cost centers for all City department activities to accurately reflect the true cost of providing specific services. ✓ The City employs a cost accounting system that is department specific which attempts to accurately reflect service delivery costs at the department and division levels. By including all supplemental services as they relate to personnel, charges and services, supplies and capital outlay will further distinguish the total costs of the service provided. The City has the ability to analyze these costs at the sub- category detail levels in support of overall policy goals. ♦ The development of work performance goals for each department to ascertain and measure how each operating division contributes to the City's overall public service mission. ✓ Each department is responsible for identifying relevant performance data to allow for an independent analysis of specific service outcomes. Data is reviewed to provide the Council and general public with a better understanding of the operational demands, resource inputs and performance outcomes associated with a specific service delivery system. ♦ The development of long-term financial models that identify anticipated trends in community growth and financial resources, designate appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. ✓ The City continually maintains various financial models to determine the long-term impacts of present day expenditure and financing decisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. ♦ The aggressive and appropriate investment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. ✓ Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates of deposit, municipal bonds, federal agencies and corporate paper and are designed to 22 Mayor, Councilmembers, Residents 2015 Adopted City Budget maximize municipal investment income. Long-term investing is designed to achieve the best yield in the current market, following a strategy that secures income streams at a higher rate of return for a longer period of time. ♦ Greater reliance on technology to enhance employee productivity in all areas of City operations and improve customer communications. ✓ The City has taken steps to invest additional time and energy on labor saving technology, such as new software, enhanced programming and optical imaging paper files. Staff implemented an optical imaging solution that enabled the City to reduce storage areas previously dedicated to paper files and provide a more economical and efficient data retrieval system. In addition, the City implemented financial management software to improve reporting and operating efficiencies. Both implementations have allowed the City to reduce staffing due to the increased efficiencies with each new system. ♦ The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended period of time to ensure that current and future taxpayers share equally in underwriting the cost of significant public expenditures. ✓ The City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existing and future taxpayers share equally in the cost. In addition, the City has established a separate capital projects levy to underwrite the cost of selected capital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. The five year Capital Improvement planning process is critical in achieving these results. ♦ Involving all employees in the process of re-engineering the work environment by encouraging cross -training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. ✓ City staff is encouraged to idents work practice issues that are inefficient or overly bureaucratic. The management team is committed to involving their employees and fostering an environment that challenges the status quo of City operations. ♦ Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointly purchase equipment and develop strategies to deal with local issues using a regional approach. 23 Mayor, Councilmembers, Residents 2015 Adopted City Budget ✓ The City has established several equipment and service delivery sharing arrangements with neighboring communities and has several joint powers agreements in place on a variety of local and regional issues in the area of public safety, telecommunications, public access television and wastewater service initiatives. EXECUTIVE SUMMARY The budget, as presented, reflects Council's direction and staff commitment to achieve a cost-effective, efficient and high-quality service delivery model. Essentially, the 2015 Adopted Budget is a reflection of the City's commitment to live within its means, and ensure that tax dollars are wisely managed and expended in as prudent a manner possible to achieve high-quality service outcomes. It is interesting to note that the City of Andover continues to maintain one of the lower tax rates in Anoka County, as well as within the entire metropolitan area. City spending per capita continues to rank in the bottom half when compared to similar cities. Budzetary Process Guiding the City budget process were Council policy guidelines that were described earlier in this message. The budget process was approached by employing strategies associated with extending the useful life of existing equipment; the utilization of cost center accounting that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; and purchasing new equipment and introducing new technologies that allow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in City operations. The budget process included the opportunity for all department heads and supervisors to actively participate in a team process. Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the same framework in developing a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. 24 Mayor, Councilmembers, Residents 2015 Adopted City Budget In order to meet these growing challenges, the City must continually evaluate new ways and methods of conducting business in a more economical, competitive and cost-effective manner, while still keeping the quality of City services high and meeting the reasonable service expectations of the community. The budget process incorporates a management vision supported through: • increased utilization, understanding and promotion of technology in the delivery of public services; • emphasis on long-term strategic planning to appropriately identify, allocate and effectively utilize resources to meet future service needs; • greater participation, accountability and flexibility in the work force that will allow for the development of innovative responses to the increased demand for cost-effective services; • the need to focus on developing an alternate framework of special revenues and user fees as alternate funding mechanisms to gradually reduce the City's reliance on tax levies by recovering service costs from the appropriate users of the service; • the recognition that the City should work to assist the community in meeting challenges as a partner and not as the sole provider; and • a strong voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The 2015 Adopted Budget is the product of the collective efforts of the management team and their respective staffs. They have worked diligently to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognition is appropriate with respect to the involvement of Lee Brezinka, Finance Manager and Finance staff in generating reliable financial data in which a sound and valid budget document was produced. The entire management team should be recognized for their diligent efforts in preparing a budget that meets the needs of this growing community, yet recognizes the limited nature of financial resources. 25 Mayor, Councilmembers, Residents 2015 Adopted City Budget The City Council should be recognized for their frugal use of municipal resources and continual efforts to provide needed services to the residents they represent and serve. I am appreciative of the commitment, good judgment and expertise that each member of the Council has contributed to the budget process. Respectfully submitted, Jim Dickinson City Administrator / Finance Director 26 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO R107-14 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2015 BUDGET AND 2015 PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR. WHEREAS, the preparation and adoption of budgets is recognized as sound financial practice; and WHEREAS, the City of Andover receives significant financial support from its residents through the payment of property taxes; and WHEREAS, the City of Andover has the responsibility to appropriately and efficiently manage the public's funds; and WHEREAS, Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to December 29, 2014; and WHEREAS, Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 29, 2014. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2015 City of Andover Budget and the 2015 property tax levy totaling $11,143,925 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2015 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 9,876,575 General Fund $ 10,338,730 Special Revenue Funds 1,523,700 Special Revenue Funds 1,710,874 Debt Service Funds 2,507,663 Debt Service Funds 2,285,820 Capital Projects Funds 3,859,038 Capital Projects Funds 4,393,745 Enterprise Funds 5,169,454 Enterprise Funds 4,832,158 Internal Service Funds 1,113,344 Internal Service Funds 1,138,752 Total $ 24,049,774 Total $ 24,700,079 Adopted by the City of Andover this 16th day of December 2014. ATTEST: Michelle Harmer — Deputy City Clerk CITY OF ANDOVER Michael R. Gamache - Mayor 27 CITY OF ANDOVER, MINNESOTA 2015 Property Tax Levy General Fund Levy Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 2012A G.O. Equipment Certificate 2012B G.O. Capital Improvement Refunding Bonds 2012C Taxable G.O. Abatement Bonds 2014 G.O. Equipment Certificate Total Debt Service Other Levies Capital Projects Levy Capital Equipment/Project Parks Projects Road & Bridge Pedestrian Trail Maintenance Lower Rum River Watershed Total Other Gross City Levy 28 2015 Levy $ 7,630,892 184,238 140,000 540,120 975,652 296,055 2,136,065 250,000 61,500 967,197 58,271 40,000 1,376,968 $ 11,143,925 Attachment A STATE OF MINNESOTA) COUNTY OF ANOKA ) CITY OF ANDOVER I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that I have carefully compared the attached Resolution No. R107-14 adopting the City of Andover 2015 Budget and 2015 Property Tax Levy with the original record thereof preserved in my office, and have found the same to be true and correct transcript of the whole thereof. IN TESTIMONY WHEREOF, I have hereunto subscribed my hand this 16th day of December 2014. Michelle Harmer — Deputy City Clerk 29 Values and Goals 1. EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES The City of Andover believes that services to the public is our reason for being, and strive to deliver quality services in a professional and cost- effective manner. 2. FISCAL RESPONSIBILITY The City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens are to have confidence in government. 3. ETHICS AND INTEGRITY The City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4. TREATING THE CITIZEN AS OUR CUSTOMER The City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and integrity. 5. OPEN AND HONEST COMMUNICATION The City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. City of Andover's Highest Priority External Goals include: Goal #1 To prudently manage the city's growth. Goal #2 To enhance communication with the public. Goal #3 To develop and update the city's capital improvement program. Goal #4 To broaden the city's tax base through increased industrial and commercial development. Goal #5 To effectively balance the services that the city provides with available resources. 30 Budget Development Process The Budget Process Andover City ordinance 216, Section 2., Major Areas of Accountability requires the City Administrator to submit an annual budget to the City Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that the City Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 15tH Beginning in levy year 2002, the State of Minnesota is allowing certain governmental units exemption from the public hearing and publication requirement if its total proposed property tax levy does not exceed its previous year final property tax levy by more than the percentage increase in the implicit price deflator. The City of Andover did fall under this exemption but still held a meeting pertaining to the 2015 Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 2, 2014 at 7:00 p.m. in the City Council Chambers. The date was advertised in the September City Newsletter, on public TV, and in the local paper. Final City Council action adopting the City Budget and Property Tax Levy occurred on December 16, 2014. The adopted 2015 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 30, 2014. The budget is prepared on an annual basis, and follows the calendar year, January 1St to December 31St. Policies are set by the City Council in one of two ways: 1) Policies are initiated by actions of the City Council at its regular council meetings through adoption of ordinances, resolutions, or motions. 2) Policies are also initiated, studied, and reviewed at special work sessions called for that purpose. The City Administrator and City staff address the Council's concerns in the preparation of the budget and evaluate the financial costs of the implementation of these policies and include them in the budget where economically feasible. In summary, policy issues are identified by the City Council, evaluated, and costed out by the Administrator and management team, and returned to Council for appropriations if necessary. If no appropriation is necessary, the new policy is implemented as soon as practical by the Administrator. Each activity manager is given a monthly financial report of expenditures compared to the adopted budget. Expenditures related to City activities may not exceed appropriations without approval of the City Council. Below is the 2015 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 31 Date February 25, 2014 March 4, 2014 April 7, 2014 April 7 — May 2, 2014 CITY OF ANDOVER 2015 Budget Development Calendar Activity Responsibility Council Workshop to discuss budget guidelines. City Council / Staff Council adopts 2015 Budget Development Guidelines. 2015 Budget Calendar. Prepare base budgets and line item budget pages. April 22, 2014 Council 2015 Budget preparation / progress report distributed. May 2, 2014 Distribution of base budgets, personnel services, capital budget forms and line item budget pages to all Department Heads. May 2, 2014 Begin preparation of performance measures. June 2, 2014* Department of Revenue notifies of required dates. June 3, 2014 Prepare preliminary 2015 revenue estimates. June 24, 2014 Council budget discussion. July 1, 2014** Requests for additional full-time staff to City Administrator. July 1, 2014** 2015 Budget forms and prioritization of adjustments to base, capital outlay requests due to Finance. July 1, 2014** Staff preparation of 2014 budget expenditure estimates. July 2 — 7, 2014 Compile and prepare documents for Management Team. July 7, 2014 General Fund levy calculations. July 9 - 10 & 14 — 15, 2014 2015 Budget Decision packages prioritized and finalized. July 14, 2014 Deadline for updated performance measures to City Administrator. July 14 — 18, 2014 Preparation of final draft of 2015 Proposed Budget for Council Workshop. *preliminary ** no exceptions Continued 32 City Council / Staff Admin / Finance Admin / Finance Council / Staff Department Heads Department Heads State Finance / Department Heads City Council / Staff Department Heads Department Heads Finance / Department Heads Finance Finance Admin / Mgmt Team Admin / Department Heads Finance Date July 15, 2014 August 8, 2014* CITY OF ANDOVER 2015 Budget Development Calendar Activity Responsibility Council discussion of budget development progress. Receives 2015 Proposed Budget. City Council / Staff County notifies City of school district & county public hearing dates. County August 26, 2014 City Council follow-up workshop for review of 2015 Proposed Budget. City Council / Staff August 26, 2014 City Council preview of Proposed 2015 Tax Levy Presentation. City Council / Staff September 1, 2014 State Department of Revenue (DOR) to certify levy limits for 2015 DOR September 2, 2014 (Req.) City to adopt proposed levy and select public hearing dates. City Council September 15, 2014 (Req.) Proposed tax levy must be certified to County. Finance September 23, 2014 City Council Budget discussion — focus on SRF, DSF, CPF, EF & ISE City Council / Staff September 30, 2014 (Req.) City to file proposed 2015 special levies with DOR Finance / DOR October 28, 2014 City Council Budget discussion — focus on DSF & CPF. City Council / Staff November 6 — 18, 2014* County Auditor to mail parcel specific notices. County November 25, 2014 City Council preview of Public Hearing. City Council / Staff December 1 - 14,2014* (Req.) City conducts public hearing during this time frame. City Council December 2, 2014 City of Andover Public hearing on 2015 Tax Levy and Budget. City Council December 16, 2014 City Council adopts 2015 Levy and Operating Budget. City Council December 30, 2014* (Req.) Deadline for staff to certify tax levy to State and County. Finance January 20, 2015* Finalize 2015 Actual Performance measures. Adopted budget printed and distributed. Finance January 23, 2015 Publication of adopted budget information in newspaper. Finance January 23, 2015 Department of Revenue budget form completed and submitted. Finance March 17, 2015 Submit budget award application to GFOA. (Due 90 days after budget adoption.) Finance *preliminary ** no exceptions 33 Budgeting for City Operations The City is required to account for revenues and expenditures in accordance with generally accepted accounting principles. Because fund accounting is required for financial reporting, the appropriation budgets are organized and presented in like manner. The summary information section presents a summary of revenues and expenditures of each fund. A brief description of each fund type can be found at the beginning of each section. Basis of Accounting The financial reporting and budgeting systems of the City are organized on a fund basis. A fund is a fiscal and accounting entity with a self -balancing set of accounts. All funds in the budget were prepared using the following basis of accounting, which is consistent with the accounting methods used for financial reporting. Government Funds All governmental funds are budgeted and maintained on a modified accrual basis for accounting and budgeting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred. Governmental funds include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The City of Andover adopted a budget for every governmental fund for the first time in 2002, and continues to do so. Proprietary Funds Proprietary funds are budgeted and maintained on an accrual basis for accounting and budgeting. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period in which the liability is incurred. Proprietary funds include Enterprise Funds and Internal Service Funds. The City of Andover currently has two enterprise funds and two internal service funds. The City of Andover has adopted the following accounting, auditing and financial reporting policy: Accounting, Auditing and Financial Reporting Policy 1. The City of Andover will establish and maintain a high standard of accounting practices. Accounting standards will conform to Generally Accepted Accounting Principles (GAAP) as outlined by the Governmental Accounting Standards Board (GASB). 2. At the end of each fiscal year, a Certified Public Accounting firm that will include issuing a financial opinion will conduct an audit of the City records and a management and compliance report on internal controls. 3. The City of Andover will maintain a strong internal audit function. 4. The City will maintain a fixed asset system to identify and protect all City assets. 5. The Finance Department will prepare monthly financial reports for internal management purposes. 6. The City Council delegates the authority to assign fund balance, as required for prudent fiscal management, to the City Administrator and Finance Director. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, 3) unassigned. 34 7. Annually, the Finance Department will prepare a comprehensive annual financial report. This report shall be made available to the elected officials, city management, bond -rating agencies, and the general public. 8. The City will annually submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA) to determine its eligibility to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Budget Monitoring and Amendments The Andover Financial Policies identifies an Operating Budget Policy which includes the process for monitoring and amending the budget, fund balance considerations and the capital improvement budget coordination, that policy is as follows: Operating Budget Policy 1. The formal budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. A. The City will attempt to maintain its present service level for priority and essential services subject to available revenues. New services will be considered for funding within available resources. B. The City of Andover will utilize a "bottom-up" resource allocation approach. Each department will have an opportunity to request personnel, goods, capital items and services needed to carry out its responsibilities in a timely manner. C. The resources to fund the budget will include all revenues reasonably anticipated from all sources and the unrestricted unassigned fund balance estimate to be carried forward at the beginning of the fiscal year. D. The City enterprise operations are to be self-supporting, including capital improvements and depreciation. Enterprise operations are to be reviewed annually for self-sufficiency. E. The City will utilize procedures that allow departments to integrate priorities and objectives into the budget requests. 2. The operating budget, authorizing expenditure of City monies, will be adopted annually by the City Council at the department level. Expenditures may not exceed the total for any department, within a fund, without the City Council's approval. The authority to make changes to the adopted City Budget during the operating year is as follows: A. City Council approval is required for all budget adjustments or transfers that will increase the department's adopted expenditure budget, or adjustments that are made to facilitate a department restructuring. B. City Council approval is required for any budget adjustment that exceeds either $10,000 or 5% of a department's expenditure budget, except that adjustments under $10,000 may be approved as provided in C. & D. below. C. City Administrator, or their designee when unavailable, approval is required for all budget adjustments or transfers made to personal services or capital outlay under $10,000 on a one-time basis. 35 D. Budget adjustments and transfers among expenditure accounts may be authorized during the fiscal year by the City Administrator and the Finance Director if there is no effect on the department's gross expenditure budget and the adjustment is not to employee compensation. E. Under no circumstances should budget adjustments be split to avoid approval limits. 3. The City will budget to maintain fund balances at adequate levels to ensure that sufficient resources are available for current and future expenditures, whether planned or unforeseen. A. The City will budget to maintain an unassigned fund balance for each operating fund, to support operations until current tax revenues are received. Based upon the semi-annual collection of local taxes, each operating fund, relying on property tax related revenues, should maintain an unassigned fund balance at year-end necessary for approximately 6 months of the subsequent year's operation. B. The City will budget to maintain an unassigned fund balance available for contingencies of between 1 percent and 3 percent of budgeted expenditures for each operating fund in order to finance unforeseen items and events that occur during the course of the year. It is not necessary for each fund to hold its own contingency. The General Fund may hold contingencies for other funds when appropriate. C. All unencumbered appropriations and encumbered purchases less than $1,000 lapse at year-end. However, the appropriation authority for all major capital projects and capital assets carries forward automatically to the subsequent year. Appropriations for encumbered purchases in excess of $1,000, which are not budgeted in the ensuing year, may be transferred to the subsequent year with the approval of the City Administrator and Finance Director. The current year appropriation is reduced and the subsequent year appropriation is increased. 4. The City will maintain a budgetary control system to ensure adherence to the budget and will prepare regular reports, which compare actual revenues, and expenditures to budgeted amounts. 5. The City will coordinate development of the Capital Improvement Budget with the development of the annual operating budget. Each capital improvement project is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel required and additional operating expenses. 6. The capitalization threshold for assets of the City of Andover, as defined in the Fixed Asset Policy, applies to all budgets and purchases associated with the Capital Expenditure series of accounts. 7. Annually, the Finance Department will prepare an Annual Operating Budget report. This report will be made available to elected officials, City management, bond -rating agencies, and general public. 8. The City will annually submit its annual operating budget document to the GFOA to determine its eligibility to receive the GFOA's Distinguished Budget Presentation Award. Determination of Revenue Estimates The Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. Discussion regarding specific revenue sources can be found in the summary information section of the budget. The Andover Financial Policies identifies a Revenue Policy that outlines the City's revenue philosophy and that policy is as follows: 36 Revenue Policy 1. The City will attempt to maintain a diversified and stable revenue system to shelter it from short -run fluctuations in any single revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of economic downturns. 2. The City will follow an aggressive policy of collecting revenues. 3. The City will periodically review fees and charges in order to keep pace with the cost of providing the service or that percentage of the total cost deemed appropriate by the City, and will conduct a public hearing or adopt an ordinance, as required by law, prior to setting fees or charges. 4. The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax fees and charges. 5. The City will allocate Citywide revenues to funds, which provide services to the entire City. 6. All revenues, reasonably expected to be unexpended and unencumbered at the end of the year, will be anticipated as "available fund balance" in the budget of the following year. 7. The City will attempt to invest all cash holdings in accordance with the cash and investment policy and maximize those holdings with an effective payment policy. Capital Improvement Program Andover's Capital Improvement Program is intended to provide the City Council and staff with a process for identifying and prioritizing capital projects in order to coordinate the financing and timing of improvements, which maximizes the return to the public. The process will enable the City to evaluate long-term cost and benefits of projects being adopted for the coming year (2015) against those projects planned between 2016 and 2019. The Capital Improvement Program follows the following policy: Capital Improvement Policy 1. A Capital Improvements Plan (CIP) will be developed for a period of five years. As resources are available, the most current year of the CIP will be incorporated into the current year operating budget as the Capital Improvements Budget (CIB). The CIP will be reviewed and updated annually. Years two through five are for planning purposes only. 2. The City will maintain its physical assets in a manner, adequate to protect the City's capital investment and to minimize future maintenance and replacement costs. The City will provide for maintenance and replacement from current revenues where possible. 3. To be considered in the Capital Improvements Program, a project must have an estimated cost of at least $5,000 in one of the calendar years of the project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items that are operating expense (such as maintenance agreements, personal computer software upgrades, etc.) will not be considered within the CIP. 4. Capital projects, which duplicate other public and/or private service, will not be considered. 37 5. The City will identify the estimated costs and potential funding sources for each capital project prior to inclusion in the CIP. The operating costs to maintain capital projects shall be considered prior to the decision to undertake the capital projects. 6. Capital projects and/or capital asset purchases will receive a higher priority if they meet a majority of the following criteria: A. Mandatory project B. Maintenance project (approved replacement schedules) C. Improve efficiency D. Provide a new service E. Policy area project F. Broad extent of usage G. Length of expected useful life H. Positive effect on operation and maintenance costs I. Availability of county/state/federal grants J. Elimination of hazards (improves public safety) K. Prior commitments L. Replacement due to disaster or loss 7. The CIP is to be presented by the City Administrator and Management Team annually to the City Council for approval. Any substantive change to the CIP after approval must be approved by the City Council. Debt Administration The City of Andover has adopted the following Debt Policy: 1. The following Debt Policy should be used to provide guidelines for debt decisions. There are no absolute rules or formulas in determining the level of City debt. Each situation requires a thorough review of the City's debt position, financial health and economic forecast. The limitations of this policy refer to City of Andover debt only (excludes EDA and HRA). 2. The City will maintain good communications with bond rating agencies and will try to improve or maintain its current AA+ bond rating so that the City's borrowing costs are minimized and access to credit is preserved. 3. The City will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency beyond the City's control or reasonable ability to forecast. 4. The City may use long-term debt financing when all of the following conditions exist: A. When non-recurring capital improvements are desired, and B. When it can be determined that present and future citizens will receive a benefit from the improvement, and C. When the cost benefit of the improvement, including interest cost, is positive. 5. The issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. For purposes of this policy, current resources are defined as that portion of fund balance in excess of appropriate required reserves and designations. The City of Andover will not pledge indebtedness to outside agency financing, unless the benefit is for City of Andover residents. 38 6. The City of Andover will limit the amount of total net general obligation debt to no more than 3% of the estimated market value. (Minnesota Statutes limit on debt is 3% of the estimated market value). 7. The payback period of the bonds or notes will not exceed the estimated useful life of the capital asset constructed or purchased. 8. The City will conservatively project the revenue sources utilized to repay the debt (i.e., taxes for G.O. debt are levied at 105% of the required debt service). 9. Capital notes and leases may be used to finance equipment purchases anytime the total cost of the purchase exceeds $10,000, the useful life of the equipment is greater than five years, the financing rate is less than or equal to the current and projected investment rates, or the purchase is of a non-recurring nature (copy machines and information technology equipment). 10. The City will follow a policy of full disclosure on every Comprehensive Annual Financial Report and official statement. Distribution of Budget Information Copies of the proposed budget are typically available to the general public beginning the second week in August in the offices of the City Administrator and Finance Director. Notices of the public hearings are published in the City's official newspaper, the Anoka County Union, along with notices posted on public bulletin boards. Citizens are invited to provide written or oral comments at the public hearings. The County Property Records and Taxation Division is required to notify each property owner of the impact of the proposed tax levy upon each individual parcel of property along with the final budget hearing dates. Awards The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Andover for its annual budget for the fiscal year beginning January 1, 2014. This is the thirteenth consecutive time the City of Andover has received this award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 39 Revenue Projections As mentioned earlier, the Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. City of Andover Major Revenue Sources Comparison Misc Rev Spec Assess Intergov'I Rev Invest. Income Tax Increments Charges for Svc Prop Taxes $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 Millions 2015 Budget 02014 Est 02013 Actual 02012 Actual City of Andover 2015 Revenue by Source Misc Rev Spec Assess 7% 2% Intergov'I Rev 9% Invest. Income 1% Tax Increments 0% Charges for Svc 32% Prop Taxes 49% Following are individual graphs of the major revenue sources over the last seven years. Included are brief descriptions of each source and explanations of any variances over the same time period. 40 Revenue Projections — Property Tax & Charges for Services $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2C Property Tax Charges for Services General Property Taxes Property taxes are a revenue source in the General, Special Revenue, Debt Service and Capital Projects Funds. This revenue source is primarily used in the General Fund and is determined on the basis of the availability of other revenue sources and the expenditure level necessary to conduct City business in accordance with Council policy and directives. The original goal for the 2015 budget for property taxes was commitment to maintain the City Tax Rate Capacity in a manner consistent with the needs of the organization to ensure the long-term competitiveness, efficiency, staffing and capital requirements. The Council, by recognizing the impact of increasing market values and acknowledging community economic concerns, were able to establish an appropriate baseline of city services and a manageable debt service expense level. The general property tax revenue does increase 2.77% as compared to 2014. This revenue source takes into account the elimination of the market value homestead credit program and the insertion of the market value homestead exclusion program (both products of the State of Minnesota Legislature in 2012). Charges for Services Charges for services comes from a variety of sources in the General and Special Revenue Funds; such as project engineering and inspection services to residential and commercial developers, drainage and mapping services, ice and field house rentals, plat reviews and other miscellaneous charges for dedicated use of city staff. Over the past few years, the City has continued to grow and this is expected to continue in 2015 and beyond. In the Enterprise Funds, charges for services come from water and sewer usage charges and a storm water utility charge. The water charges are determined by a water rate study, the sewer charges by a sewer rate study and the storm water utility charge are based on the amount of funding needed to comply with federal storm water requirements, each are reviewed annually to cover all expenses. In the Internal Services Fund, the charges for services represent department charges for the maintenance of city equipment and cost of liability insurance coverage. The largest increases are in the Enterprise Funds where the number of users continues to grow, but the major increase is due to rate increases to offset operations and provide for future infrastructure replacements. 41 Revenue Projections — Tax Increments and Intergovernmental Revenue $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Est 2015 Budget Tax Increments Intergovernmental Revenue Tax Increments Tax Increments are a revenue source in the Capital Projects Funds. The 2015 budget amount is based on captured tax increment as estimated by the Anoka County Property Records and Taxation Division. In 2012 and 2014, two significant tax increment finance districts were decertified at the end of the year resulting in a decrease of tax increment revenue for 2013 ($1,470,700) and 2015 ($205,000). Tax increment is used to pay for debt service on tax increment bond issues and expenses related to economic development and redevelopment within tax increment development districts. Annually, an extensive analysis is done reviewing the debt service requirements and the redevelopment projects contemplated in the capital improvement plan. Looking forward, the City will create tax increment districts only when a significant project meeting a required "but/for" test is deemed to achieve City goals. Intergovernmental This revenue source is present in the General, Special Revenue, Debt Service and Capital Projects Funds. In prior years, this revenue source was comprised primarily of state aid in the form of Homestead and Agricultural Credit Aid (HACA) and Local Government Aid (LGA). The Legislature, in the 2001 Legislative Session, eliminated HACA and in the 2003 Legislative Session, eliminated LGA for the City of Andover. In 2008, 2009, 2010 and 2011, the Governor unallotted $196,150, $350,938, $490,186 and 490,186 of the Market Value Homestead Credit (MVHC) to help offset the state budget deficits. In 2012, the MVHC program was eliminated and a market value homestead exclusion program was put in its place. The new program reduced the taxable market values for certain homestead properties. The intergovernmental represents the remaining state aid distributions of State Highway aid and state police and fire aid. This revenue source also represents grants applied for and awarded from other government agencies (federal, state, school, or county) such as Community Development Block Grants and DNR grants. In 2010, 2012 and 2014, the City was able to get an advance on Municipal State Aid (MSA) construction allotment funds for projects already in progress. Any unused MSA allotment is carried over and drawn upon as eligible projects are constructed. In 2014, LGA was reinstated for the City ($74,655) and was used to fund the growing infrastructure needs of the Road and Bridge Capital Projects Fund. In 2015, LGA was again eliminated for the City as notified by the State. 42 Revenue Projections — Investment Income and Special Assessments $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Est 2015 Budget Investment Income Special Assessments Investment Income This revenue source is in all funds. Investment income is interest earned on investments and is allocated to funds based on average cash balances. Revenues from this source are dependent on interest rates and cash balances available for investment. The 2013 actual, as compared to 2012, decreased due to cash escrows of refunding bonds sold in prior years being used to pay-off additional debt ($17,177,570) and the fact that yields in the market are low on the investments the City is allowed by Statute to invest in. Special Assessments Special assessments are a revenue source in the Debt Service and Capital Projects Funds. Special Assessments are used for the payment of bonds for related capital projects and for reimbursing the City's Capital Projects Funds for projects financed internally. The 2015 budget is based on special assessment payment schedules and a review of residential development within the City of Andover. Special Assessment revenue fluctuates based on the type and cost of street reconstruction projects being assessable to benefiting properties and the timing of when those assessments are paid. It also depends on whether residential development is done as a developer -installed project (developer is paying all the expenses) or as a city -installed project (the city is funding the project through bonds or the PIR fund and assessing them back to the property). 43 Revenue Projections — Miscellaneous Revenue $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Est 2015 Budget License & Permits Fines User Charges Meters, Permit Fees, Penalties Miscellaneous Revenue Miscellaneous Revenues Licenses and Permits —This revenue source is found only in the General Fund. These revenues are based on City determined license rates; State regulated rates and the Uniform Building Code. The 2015 budgeted amount is based on 50 new single-family residential homes using a building valuation of $200,000 each. Fines — Fines are a revenue source in the General Fund only. Fines are collected through the State Court System and are remitted to the City monthly. Fine revenue remains fairly consistent from year to year. User Charges — User charges are sources of revenue for the Capital Projects Funds. These charges are fees paid under development agreements when new construction projects are initiated. These fees include park dedication fees, trail fees, water system trunk and sewer system trunk charges. In 2015, these fees are calculated on the assumption that there will be 20 new platted units in 2015 and existing lot inventories will be drawn down. Meters — Meters is a revenue source for the Water Enterprise Fund. When a house is brought on to city water services, a meter is sold to each new customer to facilitate accurate billing of service. Penalties — Penalties is a revenue source for the Enterprise Funds. A penalty is a charge to past due billings. Miscellaneous — Miscellaneous revenues are revenues that do not fit in any other revenue type. Included in this are payments from the YMCA for lease payments ($635,000 — based on a 30 year lease agreement) and reimbursements for actual common space charges and natural gas. This also includes rental fees for wireless antennas. The increase in 2012 and 2013 is due to land sales in the Tax Increment Projects Capital Project Fund. 44 General Fund Revenues: $9,876,575 Expenditures: $10,338,730 -General Government Public Safety Public Works Fund Definitions CITY OF ANDOVER 2015 Budget Summary By Fund Type City of Andover - Budgeted Funds Total Revenues: $24,049,774 Total Expenditures: $24,700,079 Governmental Funds Special Revenue Funds Debt Service Funds Revenues: $1,523,700 Revenues: $2,507,663 Expenditures: $1,710,874 Expenditures: $2,285,820 ge & Mapping OW Mgmt / Utility Dnstruction Seal Coating Dmmunity Center DBG haritable Gambling .O. Improvement Bonds .O. Refunding Bonds .O. State Aid Bonds .O. Equip Certificates .O. Capital Notes .O. PIR Bonds DA Revenue Bonds .O. Abatement Bonds Capital Projects Funds Revenues: $3,859,038 Expenditures: $4,393,745 Water Trunk Storm Sewer Sewer Trunk Road & Bridge Trail & Transportation Cap Equip Reserve Tax Increment Park Dedication PIR Projects Capital Notes / Bond Projects Proprietary Funds Enterprise Funds Revenues: $5,169,454 Expenditures: $4,832,158 Sewer Fund Water Fund Storm Sewer Fund Internal Service Funds Revenues: $1,113,344 Expenditures: $1,138,752 I Equipment / Maint. isk Management General Fund - accounts for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and other. Special Revenue Funds - accounts for revenue sources that finance particular functions and projects. Debt Service Funds - accounts for the accumulation of resources for, and the payment of general long-term debt. Capital Projects Funds - accounts for the acquisition or construction of major capital facilities financed mainly with governmental fund sources, general obligation debt, special assessments, and other. Enterprise Funds - accounts for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. Internal Service Funds - accounts for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. 45 Fund Balance/Net Assets, January 1 Revenues & Other Sources General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Revenues & Other Sources: Total Available: Expenditures & Other Uses General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Expenditures & Other Uses: Fund Balance/Net Assets, December 31 CITY OF ANDOVER 2015 Budget Summary Revenues and Expenditures Fund Summary Actual Adopted Estimate Budget 2013 2014 2014 2015 $ 50,805,368 10,162,469 1,556,899 3,653,909 5,891,238 4,951,154 1,151,054 27,366,723 78,172,091 9,590,074 1,591,240 4,905,496 7,632,378 4,435,260 1,082,874 29,237,322 $ 48,934,769 46 $ 48,934,769 9,569,142 1,498,300 2,895,189 4,712,843 4,912,517 1,073,553 24,661,544 73,596,313 9,996,375 1,571,835 19,532,362 6,270,710 4,659,798 1,085,793 43,116,873 $ 30,479,440 $ 48,934,769 9,724,413 1,579,280 2,936,415 7,379,209 4,924,517 1,161,248 27,705,082 76,639,851 10,071,684 1,642,385 19,513,351 7,071,005 4,731,308 1,217,176 44,246,909 $ 32,392,942 $ 32,392,942 9,876,575 1,523,700 2,507,663 3,859,038 5,169,454 1,113, 344 24,049,774 56,442,716 10,338,730 1,710,874 2,285,820 4,393,745 4,832,158 1,138,752 24,700,079 $ 31,742,637 CITY OF ANDOVER 2015 Budget Summary Revenues and Expenditures -All Funds 47 Actual Budget Estimate Budget 2013 2014 2014 2015 Fund Balance/Net Assets, January 1 $ 50,805,368 $ 48,934,769 $ 48,934,769 $ 32,392,942 Revenues General Property Taxes 10,682,975 10,909,850 10,919,925 11,219,925 Tax Increments 375,040 182,857 182,857 20,000 Special Assessments 1,045,000 270,000 444,200 412,000 Licenses and Permits 536,706 307,355 326,380 316,588 Intergovernmental 1,115,047 1,584,702 2,313,166 1,930,088 Charges for Services 7,785,241 7,143,733 7,274,936 7,432,899 Fines 96,130 100,750 95,750 100,750 Investment Income 549,773 320,385 358,510 268,500 User Charges 660,931 144,204 599,697 255,365 Meters 23,395 13,000 13,000 13,000 Permit Fees 4,200 3,000 3,500 3,500 Penalties 4,702 17,500 15,000 16,000 Miscellaneous 2,452,594 922,950 1,148,073 986,750 Total Revenues: 25,331,734 21,920,286 23,694,994 22,975,365 Other Financing Sources Operating Transfers In 1,950,805 1,386,258 1,385,677 1,074,409 Bond Proceeds - 1,355,000 1,555,000 - Bond Premium - - 44,278 - Proceeds from Sale of Property 84,184 - 1,025,133 - Total Other Financing Sources: 2,034,989 2,741,258 4,010,088 1,074,409 Total Revenues and Other Sources: 27,366,723 24,661,544 27,705,082 24,049,774 Total Available: 78,172,091 73,596,313 76,639,851 56,442,716 Expenditures Personal Services 5,735,356 6,060,316 6,148,766 6,287,300 Supplies and Materials 1,285,649 1,357,295 1,410,590 1,390,816 Purchased Services 4,085,147 4,071,090 4,059,535 4,229,296 Other Services and Charges 6,725,211 7,379,266 7,585,548 7,167,587 Capital Outlay 3,776,885 2,511,550 3,318,663 1,480,996 Debt Service 3,778,269 3,896,098 3,877,206 3,069,675 Total Operating Expenditures: 25,386,517 25,275,615 26,400,308 23,625,670 Other Uses Operating Transfers Out 1,950,805 1,386,258 1,385,677 1,074,409 Bond Discount - - 5,924 - Redemption of Refunded Bonds 1,900,000 16,455,000 16,455,000 - Total Other Uses: 3,850,805 17,841,258 17,846,601 1,074,409 Total Expenditures and Other Uses: 29,237,322 43,116,873 44,246,909 24,700,079 Fund Balance/Net Assets, December 31 $ 48,934,769 $ 30,479,440 $ 32,392,942 $ 31,742,637 47 CITY OF ANDOVER 2015 Budget Summary Revenues and Expenditures by Fund Type Special Debt Capital Internal General Revenue Service Projects Enterprise Service Total Fund Balance/Net Assets, January 1 $ 6,612,965 $ 344,482 $ 1,190,895 $ 17,202,019 $ 6,421,317 $ 621,264 $ 32,392,942 Revenues General Property Taxes 7,706,892 40,000 2,136,065 1,336,968 - - 11,219,925 Tax Increments - - - 20,000 20,000 Special Assessments - 412,000 412,000 Licenses and Permits 316,588 - - 316,588 Intergovernmental 633,015 37,500 1,259,573 - - 1,930,088 Charges for Services 748,550 617,800 - 4,954,705 1,111,844 7,432,899 Fines 100,750 - - - - 100,750 Investment Income 75,000 7,500 127,500 57,000 1,500 268,500 User Charges - - 255,365 - - 255,365 Meters - 13,000 13,000 Permit Fees 3,500 3,500 Penalties - - 16,000 16,000 Miscellaneous 98,850 820,900 - 67,000 - 986,750 Total Revenues: 9,679,645 1,523,700 2,136,065 3,411,406 5,111,205 1,113,344 22,975,365 Other Financing Sources Operating Transfers In 196,930 - 371,598 447,632 58,249 - 1,074,409 Bond Proceeds - - - - - Proceeds from Sale of Property - - - - - Total Other Financing Sources: 196,930 - 371,598 447,632 58,249 - 1,074,409 Total Revenues and Other Sources: 9,876,575 1,523,700 2,507,663 3,859,038 5,169,454 1,113,344 24,049,774 Total Available: 16,489,540 1,868,182 3,698,558 21,061,057 11,590,771 1,734,608 56,442,716 Expenditures Personal Services 4,416,919 506,034 - - 972,417 391,930 6,287,300 Supplies and Materials 651,296 72,370 - 280,200 386,950 1,390,816 Purchased Services 3,817,821 255,475 156,000 - - 4,229,296 Other Services and Charges 1,452,694 491,397 2,812,000 2,051,624 359,872 7,167,587 Capital Outlay - 14,000 - 1,367,496 99,500 - 1,480,996 Debt Service - - 2,238,188 - 831,487 - 3,069,675 Total Operating Expenditures: 10,338,730 1,339,276 2,238,188 4,335,496 4,235,228 1,138,752 23,625,670 Other Uses Operating Transfers Out - 371,598 47,632 58,249 596,930 - 1,074,409 Bond Discount - - - - - Redemption of Refunded Bonds - - - - - Total Other Uses: - 371,598 47,632 58,249 596,930 - 1,074,409 Total Expenditures and Other Uses: 10,338,730 1,710,874 2,285,820 4,393,745 4,832,158 1,138,752 24,700,079 Fund Balance/Net Assets, December 31 $ 6,150,810 $ 157,308 $ 1,412,738 $ 16,667,312 $ 6,758,613 $ 595,856 $ 31,742,637 48 Pr Licens Chaff Fir Int CITY OF ANDOVER Revenue Comparison - General Fund City of Andover 2015 Revenue Comparison - General Fund -$1.00 $1.00 $3.00 $5.00 $7.00 $9.00 Millions o Budget 2015 ■Estimate 2014 wActual 2013 ■Actual 2012 ■Actual 2011 Actual Budget Estimate 2013 2014 2014 $ 7,376,284 Actual Actual 536,707 2011 2012 REVENUES 609,541 639,291 Property Taxes $ 7,115,936 $ 7,340,532 License and Permits 387,206 449,826 Intergovernmental Revenues 566,706 653,720 Charges for Services 866,584 973,604 Fines and Forfeits 99,777 97,571 Interest Income 130,368 95,365 Miscellaneous Revenue 127,509 149,857 Transfers 196,930 196,930_ TOTAL REVENUES $ 9,491,016 $ 9,957,405 City of Andover 2015 Revenue Comparison - General Fund -$1.00 $1.00 $3.00 $5.00 $7.00 $9.00 Millions o Budget 2015 ■Estimate 2014 wActual 2013 ■Actual 2012 ■Actual 2011 Actual Budget Estimate 2013 2014 2014 $ 7,376,284 $ 7,501,816 $ 7,511,891 536,707 307,355 326,380 710,071 609,541 639,291 1,122, 460 685,900 755,151 96,130 100,750 95,750 (17,096) 75,000 75,000 140,983 91,850 124,020 196,930 196,930 196,930 $ 10,162,469 $ 9,569,142 $ 9,724,413 49 Budget 2015 $ 7,706,892 316,588 633,015 748,550 100,750 75,000 98,850 196,930 $ 9,876,575 City of Andover 2015 Revenue by Source - General Fund Misc. Rev 1% Interest Income Transfers 1 % 2% Fines & Forfeits 1% Charges for Svcs 8% Intergov] Rev 6% Licenses & Permits 3% Property Taxes 78% EXPENDITURES General Government Public Safety Public Works Other General Gov't Public Safety Public Works TOTAL EXPENDITURES City of Andover 2015 Expenditure Comparison - General Fund Other $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Millions O Budget 2015 ■Estimate 2014 oActual 2013 eActual 2012 Actual 2011 50 City of Andover 2015 Expenditures by Function - General Fund Other 1% General Go 26 Public Safety 44 blic Works 29 CITY OF ANDOVER Expenditure Comparison - General Fund Actual Actual Actual Budget Estimate Budget 2011 2012 2013 2014 2014 2015 $ 2,271,094 26% $ 2,223,773 24% $ 2,308,882 24% $ 2,672,379 27% $ 2,658,333 26% $ 2,734,639 26% 3,960,221 45% 4,087,065 43% 4,311,340 45% 4,383,894 44% 4,474,394 44% 4,572,938 44% 2,451,850 28% 2,482,490 26% 2,759,342 29% 2,850,774 29% 2,849,629 28% 2,960,825 29% 30,631 0% 663,372 7% 210,510 2% 89,328 1% 89,328 1% 70,328 1 $ 8,713,796 $ 9,456,700 $ 9,590,074 $ 9,996,375 $ 10,071,684 $ 10,338,730 City of Andover 2015 Expenditure Comparison - General Fund Other $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Millions O Budget 2015 ■Estimate 2014 oActual 2013 eActual 2012 Actual 2011 50 City of Andover 2015 Expenditures by Function - General Fund Other 1% General Go 26 Public Safety 44 blic Works 29 51 CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2015 Actual Actual Actual Actual Actual Budget* Estimate Requested* Change (*) 2009 2010 2011 2012 2013 2014 2014 2015 $ % GENERAL GOVERNMENT Mayor and Council $ 105,318 $ 100,711 $ 101,373 $ 83,622 $ 83,595 $ 86,840 $ 86,840 $ 87,154 314 0.36% Administration 128,533 131,217 135,523 140,048 147,503 176,265 176,265 180,888 4,623 2.62% Newsletter 22,405 17,094 22,897 22,336 17,677 26,000 24,000 26,000 0 0.00% Human Resources 54,623 54,970 31,855 12,485 17,907 39,229 19,353 40,156 927 2.36% Attorney 172,900 172,775 171,062 170,930 173,244 178,300 178,300 182,000 3,700 2.08% City Clerk 96,621 95,165 100,697 101,377 108,312 129,400 129,490 135,359 5,959 4.61% Elections 6,139 37,926 6,399 39,614 11,352 55,336 55,201 57,492 2,156 3.90% Finance 210,206 194,863 207,032 207,337 215,215 235,459 235,009 239,981 4,522 1.92% Assessing 120,113 144,760 143,693 143,338 144,561 150,000 146,500 150,000 0 0.00% Information Services 122,614 136,931 142,964 136,025 135,982 170,629 170,629 172,239 1,610 0.94% Planning & Zoning 323,682 327,567 324,303 318,523 349,489 401,360 399,235 412,937 11,577 2.88% Engineering 388,285 389,038 413,818 427,339 452,788 465,656 463,756 470,631 4,975 1.07% Facility Management 409,928 421,855 469,478 420,799 451,257 557,905 573,755 579,802 21,897 3.92% Total General Gov 2,161,367 2,224,872 2,271,094 2,223,773 2,308,882 2,672,379 2,658,333 2,734,639 62,260 2.33% PUBLIC SAFETY Police Protection 2,545,642 2,599,246 2,615,407 2,693,896 2,740,899 2,818,132 2,818,132 2,918,308 100,176 3.55% Fire Protection 998,350 967,715 974,988 1,015,825 1,126,979 1,127,389 1,207,839 1,192,330 64,941 5.76% Protective Inspection 435,102 330,707 342,437 354,753 423,495 411,295 415,945 423,161 11,866 2.89% Civil Defense 14,935 15,451 16,301 14,088 13,930 17,128 22,528 29,189 12,061 70.42% Animal Control 11,376 6,952 11,088 8,503 6,037 9,950 9,950 9,950 0 0.00% Total Public Safety 4,005,405 3,920,071 3,960,221 4,087,065 4,311,340 4 3 4,474,394 4,572,938 189,044 4.31% PUBLIC WORKS Streets and Highways 567,092 518,990 594,294 570,630 572,753 604,078 605,578 625,664 21,586 3.57% Snow and Ice Removal 462,849 537,947 434,603 420,175 630,799 517,949 524,479 539,770 21,821 4.21% Street Signs 159,213 166,244 175,833 170,200 162,861 197,274 202,774 203,533 6,259 3.17% Traffic Signals 26,090 25,830 26,569 27,457 26,241 35,000 35,000 35,000 0 0.00% Street Lighting 32,666 30,885 32,317 33,439 31,702 36,400 36,400 36,400 0 0.00% StreetLights- Billed 180,641 186,320 189,144 195,197 210,331 210,000 210,000 216,000 6,000 2.86% Park & Recreation 838,033 827,911 889,180 912,750 946,545 1,118,926 1,101,426 1,169,338 50,412 4.51% Recycling 85,527 109,035 109,910 152,642 178,110 131,147 133,972 135,120 3,973 3.03% Total Public Works 2,352,111 2,403,162 2,451,850 2,482,490 2,759,342 2,850,774 2,849,629 2,960,825 110,051 3.86% OTHER 19,540 24,953 30,631 663,372 210,510 89,328 89,328 70,328 (19,000) -21.27% Total Other 19,540 24,953 30,631 663,372 210,510 89,328 SEEMS 70,328 (19,000) -21.27% GRAND TOTAL $ 10,338,730 3.42% $ 8,538,423 $ 8,573,058 $ 8,713,796 $ 9,456,700 $ 9,590,074 $ 9,996,375 $ 10,071,684 342,355 51 General Fund General Government Administration Human Resources City Clerk Elections Financial Adminstration Information Systems Planning & Zoning Engineering Facility Management Total General Government Public Safety Fire Protection Protective Inspection Civil Defense Total Public Safety Public Works Streets & Highways Snow & Ice Street Signs Parks & Recreation Recycling Total Public Works Total General Fund CITY OF ANDOVER 2015 FTE Summary 2012 2013 2014 2015 2012 2013 2014 2015 Actual Actual Current Budget Actual Actual Current Budget Special Revenue Funds Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2012 & 2013 are based on actual hours charged to various departments. 52 LRRWMO 0.20 0.20 0.15 0.15 1.15 1.15 1.30 1.30 EDA General 0.85 0.85 0.35 0.35 0.02 0.02 0.02 0.02 Community Center 3.25 3.10 3.10 3.10 1.34 1.34 1.34 1.34 ROW Mgmt / Utility 0.20 0.20 0.20 0.20 0.10 0.10 0.10 0.10 4.50 4.35 3.80 3.80 1.85 1.85 1.94 1.94 0.91 0.91 0.91 0.91 Enterprise Funds 3.70 3.70 3.90 3.90 Water 4.74 4.56 4.73 4.63 4.33 4.33 4.43 4.43 Sewer 3.17 3.49 3.61 3.38 0.07 0.22 0.22 0.22 Storm Sewers 2.54 2.23 2.32 2.45 13.47 13.62 14.16 14.16 10.45 10.28 10.66 10.46 Internal Service Funds 3.10 3.10 3.10 3.10 Central Equipment 2.91 2.91 2.91 2.90 3.93 3.93 3.93 3.93 Risk Mgmt 0.10 0.10 0.10 0.10 0.05 0.05 0.05 0.05 3.01 3.01 3.01 3.00 7.08 7.08 7.08 7.08 5.46 4.97 4.87 5.20 Grand Total 55.50 56.50 56.50 57.50 2.03 3.44 2.71 2.65 1.43 1.34 1.34 1.41 6.77 7.14 7.61 8.51 1.30 1.27 1.26 1.23 16.99 18.16 17.79 19.00 37.54 38.86 39.03 40.24 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2012 & 2013 are based on actual hours charged to various departments. 52 CITY OF ANDOVER 2015 Capital Improvement Plan Projects By Department - Use of Funds Community Center Park & Recreation - Projects Replacement - Floor Scrubber $ 14,000 Annual Miscellaneous Projects $ 15,000 Replacement - Rink Flooring 50,000 Irrigation Projects - Small Parks 20,000 64,000 Pine Hills North - Phase II 60,000 Kelsey Round Lake Park Master Plan 50,000 Engineering Fencing Upgrades - Ballfield Safety Initiatives 25,000 New Development Projects 140,000 Crooked Lake School Hockey Rink 60,000 Pedestrian Trail Maintenance 70,000 230,000 210,000 Sanitary Sewer Facility Management Televising Camera Upgrade 86,000 Annual Parking Lot Maintenance 28,000 Replacement - Carpet / Tile 10,000 Storm Sewer Building A - Seal Floor 20,000 Storm Sewer Improvements 50,000 PW / Comm Ctr Master Planning 25,000 New - Plate Compactor 13,500 83,000 63,500 Fire Streets / Highways Replacement - Turnout Gear 18,000 Annual Street Seal Coat Project 496,000 Annual Street Crack Seal Project 285,000 Information Technology Street Overlays 600,000 Microsoft DataCenter & CAL's License 15,000 Annual Pavement Markings 33,000 Microsoft Office Upgrade 15,000 Annual Curb Replacement 45,000 30,000 Municipal State Aid Routes / New & Reconstruct 1,259,000 2,718,000 Park & Recreation - Operations Replace/Repair Play Structures - Various Parks 50,000 Water Replace/Repair Major Park Projects - Various Parks 25,000 Rehabilitation of Wells 25,000 $ 75,000 Grand Total $ 3,602,500 53 Assessments Capital Equipment Reserve Capital Projects Levy Community Center Operations Construction Seal Coating Fund Municipal State Aid Fund Park Improvement Fund Parks Projects Levy Road & Bridge Fund Sanitary Sewer Fund Sewer Trunk Fund Storm Sewer Fund Water Fund Water Trunk Fund CITY OF ANDOVER 2015 Capital Improvement Plan Sources of Funds 54 282,000 231,000 25,000 64,000 16,000 1,127,000 170,000 10,000 1,363,000 90,500 110,000 54,500 29,500 30,000 Total $ 3,602,500 CITY OF ANDOVER, MINNESOTA 2015 ANNUAL BUDGET GENERAL FUND DEFINITION: The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and park and recreation. Revenue is recorded by source: i.e., general property taxes, licenses and permits, fines, charges for services, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. 55 This page left blank intentionally. 56 City of Andover 2015 Budget - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue 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 $ 6,387,841 $ 6,960,236 $ 6,960,236 $ 6,612,965 7,376,284 536,706 710,071 1,122,461 96,130 (17,096) 140,983 9,965,539 196,930 10,162,469 16,550,310 3,981,119 614,201 3,529,998 1,275,242 54,514 9,455,074 135,000 9,590,074 7,501,816 307,355 609,541 685,900 100,750 75,000 91.850 9,372,212 196,930 9,569,142 16,529,378 4,275,019 642,544 3,673,710 1,405,102 9,996,375 7,511,891 326,380 639,291 755,151 95,750 75,000 124.020 9,527,483 196,930 9,724,413 16,684,649 4,315,469 676,304 3,683,205 1,396,706 10,071,684 7,706,892 316,588 633,015 748,550 100,750 75,000 98.850 9,679,645 196,930 9,876,575 16,489,540 4,416, 919 651,296 3,817,821 1,452,694 10,338,730 9,996,375 10,071,684 10,338,730 Fund Balance, December 31 $ 6,960,236 $ 6,533,003 $ 6,612,965 $ 6,150,810 57 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue 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 $ 6,387,841 $ 6,960,236 $ 6,960,236 $ 6,612,965 7,376,284 536,706 710,071 1,122,461 96,130 (17,096) 140,983 9,965,539 196,930 10,162,469 16,550,310 3,981,119 614,201 3,529,998 1,275,242 54,514 9,455,074 135,000 9,590,074 7,501,816 307,355 609,541 685,900 100,750 75,000 91.850 9,372,212 196,930 9,569,142 16,529,378 4,275,019 642,544 3,673,710 1,405,102 9,996,375 7,511,891 326,380 639,291 755,151 95,750 75,000 124.020 9,527,483 196,930 9,724,413 16,684,649 4,315,469 676,304 3,683,205 1,396,706 10,071,684 7,706,892 316,588 633,015 748,550 100,750 75,000 98.850 9,679,645 196,930 9,876,575 16,489,540 4,416, 919 651,296 3,817,821 1,452,694 10,338,730 9,996,375 10,071,684 10,338,730 Fund Balance, December 31 $ 6,960,236 $ 6,533,003 $ 6,612,965 $ 6,150,810 57 Fund: 0101 -General Cost Center: 41100 Activitv Description The City Council exercises the legislative power of the City by which all matters of policy are determined, as provided by the form of government. Council exercises budgetary control through the adoption of the annual budget, and approval of claims against the City treasury. The Council also approves capital improvement projects through the adoption of a five year capital improvement plan identifying the City's infrastructure needs. Council appoints various citizen committees to render advice on legislative and city issues. Council members respond to constituent concerns and questions by working with City administration to address community service issues. Process Used As provided by statutory authority, Council performs a legislative, regulatory and quasi- judicial function. The Council meets regularly to consider ordinances, resolutions, and other such actions as may be required by law and circumstance. Various concerns that are brought before Council for consideration are reviewed and forwarded to staff for an appropriate response. The City Administrator and staff attend meetings to provide information and other forms of support for Council deliberations. Service Expenditure Highlights No major changes between Current 2014 and Budget 2015. Department: Mayor & Council Director/Manager: City Council Actual Current Budgeted Performance Measures 2013 2014 2015 Council Meetings 26 23 23 Special Workshops 12 11 12 Aqenda Items 514 334 350 Department: Mayor & Council Director/Manager: City Council Service Exuenditures By Categor - ®Personal Services ■Supplies & Materials OOther Services/ Charges OPurchased Services Actual Current Budgeted Staffing Levels 2013 2014 2015 One Mayor and Four Council Members 32,000 32,250 Monthly Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 44,043 $ 43,799 $ 43,799 Supplies & Materials 28,472 29,964 30,076 Other Services / Charges 2,605 2,577 2,779 Purchased Services 8,475 10,500 10,500 TOTAL 83,595 86,840 87,154 Service Exuenditures By Categor - ®Personal Services ■Supplies & Materials OOther Services/ Charges OPurchased Services ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 58 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 0.22 $ 0.23 $ 0.23 Annual $ 2.64 $ 2.71 $ 2.70 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 58 Fund: 0101 -General Cost Center: 41200 Activitv Description The City Administrator oversees all city operations and activities as directed by the City Council. Primary responsibilities include directing the administration of City affairs; enforcing laws, City ordinances and resolutions as adopted by the governing body. Ensures that services are delivered in a cost-effective, efficient and high quality manner. Oversees the preparation of Annual City Budget and Capital Improvement Plan for Council adoption; Responsible for keeping Council fully advised as to the financial condition and needs of the organization. Process Used Policy goals and direction are translated in to management objectives to be administered and delegated to appropriate City departments for implementation and achievement. Through reporting relationships established by City ordinance, department directors are responsible to the administrator for properly managing and overseeing the operations of their department. A management team consisting of key department directors works with the administrator to resolve issues, review projects and address changing community service dynamics. Service Expenditure Highlights Budget 2015 reflects salary and benefit changes. Staffing Levels FTE Equivalents Department: Administration Director/Manager: City Administrator Actual Current 2013 2014 1.15 1.30 Actual Current Budgeted Performance Measures 2013 2014 2015 Regular Council Agenda Items 514 334 350 Council Workshops Attended 12 11 12 Council Meetings Attended 26 23 23 Staff Meetings Held 52 52 52 Staffing Levels FTE Equivalents Department: Administration Director/Manager: City Administrator Actual Current 2013 2014 1.15 1.30 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 59 Current 2014 $ 150,505 8,300 16,460 1,000 176,265 Budgeted 2015 1.30 Budgeted 2015 $ 154,170 8,500 17,218 1,000 180,888 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Actual Service Expenditures 2013 Personal Services $ 123,776 Supplies & Materials 7,495 Other Services / Charges 16,232 Purchased Services - TOTAL 147,503 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 59 Current 2014 $ 150,505 8,300 16,460 1,000 176,265 Budgeted 2015 1.30 Budgeted 2015 $ 154,170 8,500 17,218 1,000 180,888 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current 2013 2014 31,692 32,000 $ 0.39 $ 0.46 $ 4.65 $ 5.51 Budgeted 2015 32,250 $ 0.47 $ 5.61 Fund: 0101 -General Cost Center: 41210 Activitv Description The City publishes a newsletter containing articles regarding important municipal service news. Funding for publication is provided through general tax levies and is distributed to every household and business located within Andover's corporate boundaries. Process Used The City has an active newsletter committee comprised of Council members, and staff who meet to determine newsletter articles, format and coordinate the development of the newsletter publication. Each issue is reviewed by City departments to ensure accuracy and appropriate content. The newsletter is published by a contract vendor and distributed to all households and businesses. Articles selected for publication are intended to provide the public with timely, newsworthy and customer service oriented information. Each Council member and the City administrator prepare news articles focusing on significant issues affecting City government. Service Expenditure Highlights Newsletter setup, printing and postage costs have increased slightly. Department: Newsletter Director/Manager: Newsletter Coordinator Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A Actual Current Budgeted Performance Measures 2013 2014 2015 Number of Meetings Held 6 6 6 Newsletters Published 6 6 6 Public Circulation 10,348 12,720 12,750 Staff Preparation Hours 90 90 90 Department: Newsletter Director/Manager: Newsletter Coordinator Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A Actual Expenditures Per Capita 2013 Population - Estimates 31,692 Monthly $ 0.05 Annual $ 0.56 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 60 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted 1n1n Inil; ,5z,uuu oz,zou $ 0.06 $ 0.07 $ 0.75 $ 0.81 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Supplies & Materials 6,800 12,000 14,000 Other Services / Charges - - - Purchased Services 10,877 12,000 12,000 TOTAL 17,677 24,000 26,000 Service Expenditures By Category Actual Expenditures Per Capita 2013 Population - Estimates 31,692 Monthly $ 0.05 Annual $ 0.56 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 60 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted 1n1n Inil; ,5z,uuu oz,zou $ 0.06 $ 0.07 $ 0.75 $ 0.81 Fund: 0101 -General Cost Center: 41230 Activitv Description Personnel activities support the City's human resource needs in the areas of recruitment, selection, development, training and assessment of organizational needs. Employee benefits, compensation administration, enforcement of personnel policies, and compliance with state and federal employment laws are essential functions of the activity. Labor relations activities such as negotiations, contract administration, grievance processing and costing of benefits provide the City with the ability to interpret and manage labor components of providing City services. Conducting and facilitating employee training in the areas of customer service, safety training and programs designed to enhance the productivity and performance of the organization. Process Used Staff needs are continually reviewed by City departments, and annually appropriated for in the budget process through review and justification factors. Human resources will facilitate this through advertisements, testing and interviews, and processing of new employees. Personnel functions include training, interviewing, record processing and management, benefits, job description development and analysis, pay equity compliance, labor negotiations, drug testing, and ensuring compliance with state and federal laws. Service Expenditure Highlights The Human Resources Manager is allocated out to various departments based on FTE's. Budget 2015 includes funding for any market rate adjustments that are approved by the City Council. Training hours will be increased due to new OSHA requirements. Also, new ACA requirements will increase benefits administration. Performance Measures Number of applications reviewed Actual 2013 400 Current 2014 200 Budgeted 2015 400 Number of training hours 35 50 50 Hours spent on labor relations 50 10 50 Hours spent on benefit administration 20 30 30 Emolovees hired (Seasonal/FT/PT) 50 50 50 Department: Human Resources Director/Manager: Human Resources Manager Service Expenditures By Catew M Personal Services ■Supplies & Materials OOther Services/Charges OPurchased Services Actual Current Expenditures Per Expenditures Per Capita 2013 2014 Population - Estimates 31,692 32,000 Monthly $ 0.05 $ 0.05 Annual $ 0.57 $ 0.60 ------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 61 Budgeted 2015 32,250 0.10 1.25 Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 0.02 0.02 0.02 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 9,686 $ 4,329 $ 4,406 Supplies & Materials 2,365 3,750 3,900 Other Services / Charges 3,519 3,924 4,100 Purchased Services 2,337 7,350 27,750 TOTAL 17,907 19,353 40,156 Service Expenditures By Catew M Personal Services ■Supplies & Materials OOther Services/Charges OPurchased Services Actual Current Expenditures Per Expenditures Per Capita 2013 2014 Population - Estimates 31,692 32,000 Monthly $ 0.05 $ 0.05 Annual $ 0.57 $ 0.60 ------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 61 Budgeted 2015 32,250 0.10 1.25 Fund: 0101 -General Cost Center: 41240 Activity Description The City Attorney provides City Council and staff with research and support on issues of a legal matter. The City Attorney also serves as the chief prosecuting attorney for the City on offenses committed within the City of Andover. The City Attorney attends Council and staff meetings and serves in an advisoral capacity to all City departments on matters coming before the City Council. Process Used Attorney services are provided to the City through an annual contract with the Hawkins & Baumgartner, P.A. legal firm. Service Expenditure Highlights Slight increase (2%) planned for Budget 2015. Department: Attorney Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 62 Actual Infill s i ,nye $ 0.46 $ 5.47 Current 2014 32,000 $ 0.46 $ 5.57 Budgeted Inir, .5z'zou $ 0.47 $ 5.64 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 173,244 178,300 182,000 TOTAL 173,244 178,300 182,000 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 62 Actual Infill s i ,nye $ 0.46 $ 5.47 Current 2014 32,000 $ 0.46 $ 5.57 Budgeted Inir, .5z'zou $ 0.47 $ 5.64 ® Personal Services ■Supplies & Materials DOther Services / Charges DPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 62 Actual Infill s i ,nye $ 0.46 $ 5.47 Current 2014 32,000 $ 0.46 $ 5.57 Budgeted Inir, .5z'zou $ 0.47 $ 5.64 Fund: 0101 -General Department: City Clerk Cost Center: 41300 Director/Manager: City Clerk Activitv Description The City Clerk's office prepares the agenda and materials for council meetings; is responsible for special assessments, elections, homestead filing; licensing of alcohol and tobacco, garbage haulers, dogs, peddlers, tree trimmers; signs all official papers; is the keeper of the official city records including resolutions, minutes, ordinances, etc. Assists residents by telephone, e-mail and in person. Process Used Activities are conducted pursuant to city ordinances, policies and state law. Service Expenditure Highlights In Budget 2015, the increase is due to a COLA and an increase in the cost of health benefits. Actual Current Budgeted Performance Measures 2013 2014 2015 Council packets assembled & distributed 306 300 300 Licenses Issued 88 68 75 Service Expenditures By Catego Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 63 Actual $ 0.28 $ 3.42 ■Personal Services NSupplies & Materials OOther Services / Charges OPurchased Services Current Budgeted $ 0.34 Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 1.34 1.34 1.34 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 81,023 $ 100,961 $ 105,972 Supplies & Materials 1,198 2,000 2,110 Other Services / Charges 26,019 26,329 27,077 Purchased Services 72 200 200 TOTAL 108,312 129,490 135,359 Service Expenditures By Catego Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 63 Actual $ 0.28 $ 3.42 ■Personal Services NSupplies & Materials OOther Services / Charges OPurchased Services Current Budgeted $ 0.34 $ 0.35 $ 4.05 $ 4.20 Fund: 0101 -General Cost Center: 41310 Activitv Description Conduct State and General Elections in accordance with State Law. Process Used Notify voters of their precincts; administer filings for local offices; proof ballots; post and publish notices; hire sufficient number of judges; arrange for judges' training; notify polling places of elections; conduct public accruary tests to ensure machine accuracy. Service Expenditure Hi2hli2hts Budget 2015 includes an increase in the Anoka County system support fee for the new election equipment shown in Purchased Services. Performance Measures Total number of voters Number of Precincts Reaistered voters Actual 2013 Current 2014 Budgeted 2015 Non election 1Z052 Non election year 10 year 0.10 19,772 0.10 Department: Elections Director/Manager: City Clerk Service Expenditures By Cate2o Actual Expenditures Per Capita 2013 Population - Estimates 31,125 Monthly $ 0.03 Annual $ 0.36 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 64 ■ Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted 2014 2015 31,375 31,625 $ 0.15 $ 0.15 $ 1.76 $ 1.82 Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 0.10 0.10 0.10 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 6,904 $ 47,686 $ 47,942 Supplies & Materials - 2,000 2,000 Other Services / Charges - - - Purchased Services 4,448 5,515 7,550 TOTAL 11,352 55,201 57,492 Service Expenditures By Cate2o Actual Expenditures Per Capita 2013 Population - Estimates 31,125 Monthly $ 0.03 Annual $ 0.36 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 64 ■ Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted 2014 2015 31,375 31,625 $ 0.15 $ 0.15 $ 1.76 $ 1.82 Fund: 0101 -General Cost Center: 41400 Activitv Description This department is responsible for administration of the City's financial affairs. This includes maintaining accounting records for all operations, custody and investment of funds , supervision of revenue collection and disbursements of city monies, administration of debt, payroll function, audit and budget preparation. Process Used The financial affairs are conducted in compliance with federal law, state law, generally accepted accounting principles, and various city policies. Service Expenditure Highlights No major changes for Budget 2015 except for Personal Services. A 2% cost of living adjustment and an increase in health insurance are the main factors for the increase. Performance Measures Vendor checks issued Actual 2013 3,188 Current 2014 3,314 Budgeted 2015 3,300 Payroll checks issued 403 398 400 Payroll checks - direct deposit 2,652 2,559 2,600 Number of delinquent accounts 257 570 400 Utility accounts - Storm Water 10,218 10,344 10,404 Utility accounts - Water 6,331 6,412 6,472 Utility accounts - Sewer 7,218 7,288 7,348 Utilitv accounts - Street Liahts 6.981 6.975 7.035 Department: Financial Administration Director/Manager: Finance Director Actual Staffing Levels 2013 FTE Equivalents 1.85 Service Expenditures By Category Current 2014 1.94 Current 2014 $ 184,769 6,900 18,590 24,750 235,009 Budgeted 2015 1.94 Budgeted 2015 $ 187,935 6,900 19,646 25,500 239,981 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Service Expenditures 2013 Personal Services $ 171,705 Supplies & Materials 2,035 Other Services / Charges 18,359 Purchased Services 23,116 TOTAL 215,215 Service Expenditures By Category Current 2014 1.94 Current 2014 $ 184,769 6,900 18,590 24,750 235,009 Budgeted 2015 1.94 Budgeted 2015 $ 187,935 6,900 19,646 25,500 239,981 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 65 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 0.57 $ 0.61 $ 0.62 Annual $ 6.79 $ 7.34 $ 7.44 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 65 Fund: 0101 -General Department: Assessing Cost Center: 41410 Director/Manager: Finance Director Personal Services $ - $ - $ - Activitv Description This department is responsible for assessment for all real and personal property for valuation purposes. The City contracts with Anoka County for this service. Process Used The assessed valuation is determined by inspections of real and personal property within the city. The Assessor follows state statutes and market trends to determine taxable market values. Service Expenditure Highlights Budget 2015 includes a slight increase in the contract with Anoka County for assessing services. Performance Measures Residential Parcels Assessed Commercial Parcels Assessed Actual Current Budgeted 132 Apartments Assessed 20 Unimproved Parcels Assessed 711 Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A ■Personal services •` _ :supplies 8 Materials Domer services / charges OP—hased services 10,193 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 144,561 146,500 150,000 TOTAL 144,561 146,500 150,000 Service Expenditures By Category ■Personal services •` _ :supplies 8 Materials Domer services / charges OP—hased services 10,193 10,250 Actual Current 130 130 Expenditures Per Capita 2013 2014 21 21 Population - Estimates 31,692 32,000 604 600 Monthly $ 0.38 $ 0.38 Annual $ 4.56 $ 4.58 ---------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 66 Budgeted $ v�0.39 $ 4.65 Fund: 0101 -General Cost Center: 41420 Activitv Description This department is responsible for the continued operations of the city's information technology equipment. The department also provides assistance to computer users to provide timely, accurate and meaningful data for program monitoring and decision-making. Process Used - City website updated and monitored daily - Train employees as needed on new and existing software - Network data backup monitored daily - Maintain phone systems including voice mail and assist in future upgrades - Maintain all City servers and remote users - Research new technology for current and future growth - Purchase new equipment as needed - Maintain SPAM firewall for unauthorized emails - Maintain network security for prevention of unauthorized access Service Expenditure Highlights Minimal changes planned in Budget 2015. Performance Measures Number of PC's / Servers Actual Current Budgeted 2013 2014 2015 71 74 74 Number of Printers 27 28 28 Number of Phones Maintained 73 73 73 Department: Information Systems Director/Manager: City Administrator Actual Staffing Levels 2013 FTE Equivalents 0.91 Service Expenditures By Category Current 2014 0.91 Current 2014 $ 101,454 42,425 24,750 2,000 170,629 Budgeted 2015 0.91 Budgeted 2015 $ 99,254 41,535 29,450 2,000 172,239 t � � ®Personal Services i ■Supplies & Materials ' OOther Services / Charges O Purchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 67 Actual 2013 31,692 $ 0.36 $ 4.29 Current 2014 32,000 $ 0.44 $ 5.33 Budgeted 2015 32,250 $ 0.45 $ 5.34 Actual Service Expenditures 2013 Personal Services $ 94,377 Supplies & Materials 19,315 Other Services / Charges 20,189 Purchased Services 2,101 TOTAL 135,982 Service Expenditures By Category Current 2014 0.91 Current 2014 $ 101,454 42,425 24,750 2,000 170,629 Budgeted 2015 0.91 Budgeted 2015 $ 99,254 41,535 29,450 2,000 172,239 t � � ®Personal Services i ■Supplies & Materials ' OOther Services / Charges O Purchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 67 Actual 2013 31,692 $ 0.36 $ 4.29 Current 2014 32,000 $ 0.44 $ 5.33 Budgeted 2015 32,250 $ 0.45 $ 5.34 Fund: 0101 -General Cost Center: 41500 Activitv Description Review residential and commercial developments for conformance with City's Comprehensive Plan, Ordinances, and Development Policies. Prepare ordinances for Council adoption with the implementation and enforcement of ordinances as directed. Review planning and zoning requests and make recommendations in accordance with adopted regulations Process Used The Planning Department processes development proposals, reviews plats, reviews commercial site plans and responds to citizens' requests for rezonings, special use permits, comprehensive plan amendments and variances. The Zoning Ordinance is the primary source of information. However, the Andover Review Committee and the City Attorney are also utilized before applications are processed before the Planning and Zoning Commission and City Council. Service Expenditure Highlights Budget 2015 Personal Services change is largely due to a COLA, an increase in health benefits and a step increase for a newly hired employee. Performance Measures Subdivisions Processed Actual 2013 5 Current 2014 7 Budgeted 2015 3 Commercial Site Plans Processed 4 1 2 Conditional Use Permits 11 4 5 Code Amendments 4 2 2 Comp Plan Amendments 1 0 1 Rezonings 2 4 2 Variances 2 1 2 Lot Splits 1 0 2 P&Z Agendas 12 9 12 Vac of Easements 7 7 5 IUP - Interim Use Permit 0 3 3 RLS - Registered Land Survey 0 2 1 Department: Planning and Zoning Director/Manager: Community Development Director Service Expenditures By Categor O Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 3.70 3.90 3.90 Monthly Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 329,649 $ 380,212 $ 393,176 Supplies & Materials 4,607 5,390 5,700 Other Services / Charges 7,055 7,283 7,711 Purchased Services 8,178 6,350 6,350 TOTAL 349,489 399,235 412,937 Service Expenditures By Categor O Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 68 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 0.92 $ 1.04 $ 1.07 Annual $ 11.03 $ 12.48 $ 12.80 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 68 Fund: 0101 -General Department: Engineering Cost Center: 41600 Director/Manager: City Engineer Activitv Description The Engineering Division provides review, design and construction related support for the development and maintenance of the City Infrastructure. The Department maintains and distributes information relative to "as -constructed" drawings for the City Infrastructure. Engineering support is provided for other City activities as needed. The department also provides project management and inspection related services for the City. Process Used Engineering support is provided for the development and long-term maintenance of the City Infrastructure (i.e. water, sanitary sewer, storm sewer, water main, streets, trails, parks, facilities, etc.). Engineering reviews plans for all commercial and residential development to ensure compliance with City standards. Service Expenditure Highlights Actual Current Budgeted Budget 2015 Personal Services change is largely due to a COLA and a cost increase in health benefits. 2015 FTE Equivalents 4.33 4.43 Actual Current Budgeted Performance Measures 2013 2014 2015 1. Number of Projects Constructed 13 16 12 2. Number of Projects Reviewed: $ 425,248 Supplies & Materials 12,004 Prelimary Plats 3 8 2 Commercial Site Plans 3 1 2 3. Number of Utilitv oermits issued 70 63 55 Service Expenditures By Categor ■ Personal Services ■Supplies 8 Materials GOther Services/Charges G P—hased Services Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 4.33 4.43 4.43 Monthly Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 416,485 $ 420,957 $ 425,248 Supplies & Materials 12,004 17,700 18,500 Other Services / Charges 23,147 22,999 23,683 Purchased Services 1,152 2,100 3,200 TOTAL 452,788 463,756 470,631 Service Expenditures By Categor ■ Personal Services ■Supplies 8 Materials GOther Services/Charges G P—hased Services ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA A9 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 1.19 $ 1.21 $ 1.22 Annual $ 14.29 $ 14.49 $ 14.59 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA A9 Fund: 0101 -General Department: Facilities Management Cost Center: 41900 Director/Manager: Finance Director Activitv Description Responsible for the custodial, mechanical, structural and ground maintenance of the City Hall and Public Works campus, park buildings and fire stations. Process Used The facilities are to be maintained in a healthy, safe and sanitary condition and to work toward facility designs that will maximize operational efficiency while projecting a positive public image and work environment. Service Expenditure Highlights Utility rates are expected to rise and as buildings continue to age, maintenance costs increase as well. Performance Measures Buildings Parking Lots Actual 14 Current 2014 17 14 Budgeted 14 Actual Staffing Levels 2013 FTE Equivalents 0.22 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 70 Actual Current Budgeted 2014 2015 0.22 0.22 Current 2014 $ 31,737 78,850 312,368 150,800 573,755 Budgeted 2015 $ 33,690 80,100 318,877 147,135 579,802 ■Personal Services ■Supplies & Materials OCther Services / Charges O Purchased Services Current Budgeted $ 1.19 $ 1.49 $ 1.50 $ 14.24 $ 17.93 $ 17.98 Actual Service Expenditures 2013 Personal Services $ 20,830 Supplies & Materials 66,636 Other Services / Charges 232,983 Purchased Services 130,808 TOTAL 451,257 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 70 Actual Current Budgeted 2014 2015 0.22 0.22 Current 2014 $ 31,737 78,850 312,368 150,800 573,755 Budgeted 2015 $ 33,690 80,100 318,877 147,135 579,802 ■Personal Services ■Supplies & Materials OCther Services / Charges O Purchased Services Current Budgeted $ 1.19 $ 1.49 $ 1.50 $ 14.24 $ 17.93 $ 17.98 Fund: 0101 -General Cost Center: 42100 Activitv Description Enforce state laws and city ordinances as directed to provide the public with law enforcement services in the area of patrol, investigation, school liaison, crime prevention and traffic control. The Anoka County Sheriff's office is responsible for recognizing public safety issues and appropriately reacting to these issues through appropriate law enforcement channels and means. Process Used The City of Andover contracts with the Anoka County Sheriff's Office to provide a wide range of public safety and law enforcement services. The Sheriff's Office serves as a member of the City's management team, and works with the City to address a wide range of public safety concerns and issues. Responses to citizen service requests are handled by deputies in accordance with established procedures and public safety circumstances. The Sheriff's Office also provides school liaison officers in community schools, prepares news articles and performs a variety of community safety programming. Service Expenditure Highlights budget 2015 includes a 2.8% contract increase with no change in service. Actual Current Budgeted Performance Measures 2013 2014 2015 Number of Part I & II Offenses 1,572 1,601 1,625 Staffing Levels FTE Equivalents Department: Police Protection Director/Manager: City Administrator Actual Current 2013 2014 N/A N/A Current 2014 _ Budgeted 2015 N/A Budgeted finis 2,818,132 2,918,308 2,818,132 2,918,308 ■Personal Services ■Supplies & Materials OOther Services /Charges OPurchased Services Number of Calls for Services Actual Service Expenditures 2013 Personal Services $ - Supplies & Materials - Other Services / Charges - Purchased Services 2,740,899 TOTAL 2,740,899 Service Expenditures By Category Current 2014 _ Budgeted 2015 N/A Budgeted finis 2,818,132 2,918,308 2,818,132 2,918,308 ■Personal Services ■Supplies & Materials OOther Services /Charges OPurchased Services Number of Calls for Services 10,659 10,319 10,400 Number of Traffic Citations 2,480 2,536 2,600 Actual Current Budgeted Number of Patrol Hours 29,200 29,200 29,200 Expenditures Per Capita 2013 2014 2015 Staff Meetings Attended 50 50 50 Population - Estimates 31,692 32,000 32,250 Number of School Liaison Hours 4,160 4,160 4,160 Monthly $ 7.21 $ 7.34 $ 7.54 Annual $ 86.49 $ 88.07 $ 90.49 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 71 Fund: 0101 -General Cost Center: 42200 Activitv Description The fire department responds to all fire and emergency medical incidents in the City of Andover. Paid on-call firefighters are alerted to an incident via a pager dispatched through the Anoka County Central Communications System. The fire department is responsible for performing new building plan reviews and existing building inspections to ensure compliance with State and Federal Fire Codes and Standards. The fire department also provides public education and fire safety information to residents. In addition, the Fire Chief is the City Emergency Manager, overseeing all City disaster and contingency plans. Process Used Paid on-call firefighters are professionally trained, each averaging over 125 hours a year to help maintain proficiency in skills used for responding to fire and medical emergencies. The Fire Chief and Fire Marshall are well versed in all appropriate State Laws, Fire Codes, and National Fire Standards used for plan reviews, inspections, and fire investigations. Service Expenditure Highlights Current 2014 Personal Services includes the payout of accrued time to an employee who retired mid -year. Budget 2015 includes an expenditure reorganization with the hiring of a new fire chief and the hiring of additional volunteer fire fighters. Performance Measures Fire Responses Actual 2013 308 Current 2014 257 Budgeted 2015 275 Emergency Medical Responses 863 838 800 Fire Inspections 212 132 150 Fire Investigations 15 9 10 Public Fire Education (hours) 221 567 600 Customer Contacts 3,600 3,800 3,800 Total Firefiahter Trainina Hours 2.159 3.760 3.750 Department: Fire Protection Director/Manager: Fire Chief Service Expenditures By Cate2or ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 3.10 3.10 3.10 Monthly Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 801,020 $ 863,424 $ 851,840 Supplies & Materials 96,513 118,300 93,250 Other Services / Charges 206,938 208,665 219,640 Purchased Services 22,508 17,450 27,600 TOTAL 1,126,979 1,207,839 1,192,330 Service Expenditures By Cate2or ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 72 Actual Current Budgeted Expenditures Per Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 2.96 $ 3.15 $ 3.08 Annual $ 35.56 $ 37.74 $ 36.97 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 72 Fund: 0101 -General Cost Center: 42300 Activitv Description Review and process building permit applications, perform on-site inspections of residential and commercial construction and ensure that all construction activity is in compliance with state and city building and fire codes. Process Used Building permit applications are reviewed, plan checks completed, and construction fees collected. Upon issuance of a permit, the person doing the work calls in for inspections at various stages of construction. When construction is completed in accordance with approved standards, a Certificate of Occupancy is issued. Service Expenditure Hi2hli2hts Actual 2013 Personal Services includes the payout of accrued time to an employee who retired mid -year. There is also a fluncuation in Purchased Services for an electrical inspector whose fees are based on the electrical permits pulled and inspected. Department: Protective Inspection Director/Manager: Building Official Actual Staffing Levels 2013 FTE Equivalents 3.93 Service Expenditures By Cate2ory Current 2014 3.93 Current 2014 $ 342,511 17,700 24,434 31,300 415,945 Budgeted 2015 3.93 Budgeted 2015 $ 350,338 16,300 24,723 31,800 423,161 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Service Expenditures 2013 Personal Services $ 345,129 Supplies & Materials 9,712 Other Services / Charges 23,092 Purchased Services 45,562 TOTAL 423,495 Service Expenditures By Cate2ory Current 2014 3.93 Current 2014 $ 342,511 17,700 24,434 31,300 415,945 Budgeted 2015 3.93 Budgeted 2015 $ 350,338 16,300 24,723 31,800 423,161 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services 73 Actual Current Budgeted Performance Measures 2013 2014 2015 Townhomes 0 0 8 Single Family 98 52 100 Actual Current Budgeted Miscellaneous Building Permits 518 431 1,200 Expenditures Per Capita 2013 2014 2015 Other Permits 1,716 1,898 1,800 Population - Estimates 31,692 32,000 32,250 Inspections 3,766 2,840 4,000 Monthly $ 1.11 $ 1.08 $ 1.09 Contractor Licenses 181 114 35 Annual $ 13.36 $ 13.00 $ 13.12 ---------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 73 Fund: 0101 -General Department: Civil Defense Cost Center: 42400 Director/Manager: Building Official Activitv Description Maintain City's emergency warning system. Repair, replace and maintain twelve (12) warning sirens throughout the city to ensure proper activation during storm, civil and emergency conditions. All sirens are visually checked every April to confirm sirens are operating properly. Process Used If a siren is found to be dysfunctional, a service call is placed, a repair -person comes out, necessary repairs are completed. The City replaced all sirens in 2002 and 2003 into battery back-up units. Siren warning tests are performed monthly to verify activation and educate citizens regarding the City's Emergency Warning System. Service Expenditure Highlights Current 2014 included repairs to six control boxes due to water penetration. The boxes were cleaned, repainted and all penetrations were sealed. In Budget 2015, the existing decoder boards will be replaced with 2nd generation boards that have the flexibility to detect electrical current and sound. Actual Current Budgeted Performance Measures 2013 2014 2015 Siren tests throughout the severe weather season 4 4 4 State-wide siren tests 14 14 14 Number of sirens 12 12 12 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 74 Actual $ 0.04 $ 0.44 Current 2014 Budgeted 2015 0.05 Budgeted 2015 $ 6,005 8,184 15,000 29,189 .Personal Services :Supplies 8 Materials Domer services / charges oPurchased services 32,000 $ 0.06 $ 0.70 Budgeted $ 0.08 $ 0.91 Actual Current Staffing Levels 2013 2014 FTE Equivalents 0.05 0.05 Actual Current Service Expenditures 2013 2014 Personal Services $ 5,644 $ 5,770 Supplies & Materials - - Other Services / Charges 7,652 7,758 Purchased Services 634 9,000 TOTAL 13,930 22,528 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 74 Actual $ 0.04 $ 0.44 Current 2014 Budgeted 2015 0.05 Budgeted 2015 $ 6,005 8,184 15,000 29,189 .Personal Services :Supplies 8 Materials Domer services / charges oPurchased services 32,000 $ 0.06 $ 0.70 Budgeted $ 0.08 $ 0.91 Fund_ Cost Center _ 0101 -General 42500 Department_ Director/Manager: Animal Control City Clerk 2014 2015 Number of dogs licensed 262 219 Activitv Description The enforcement of City Code Title 5 relating to dogs and cats. Process Used Letters are sent to dog and cat owners who allow their animals to run at large warning them that they are in violation of the City's ordinance. If the behavior continues, a ticket is issued by the Sheriff's office to the owner citing them for a misdemeanor. The City contracts with an independent contractor to provide animal control services. The City, in conjunction with a veterinarian, holds a rabies vaccination clinic every spring. City staff also issue licenses for dogs in the city. Service Expenditure Highlights No changes to Budget 2015 as compared to Current 2014. Actual Current Budgeted Performance Measures 2013 2014 2015 Number of dogs licensed 262 219 250 Number of animals confined 98 80 80 Service Expenditures By Categor _f OPersonal Services ■Supplies & Materials OOther Services/Charges OPurchased Services Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A Monthly Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Supplies & Materials 94 150 150 Other Services / Charges 200 200 200 Purchased Services 5,743 9,600 9,600 TOTAL $ 6,037 9,950 9,950 Service Expenditures By Categor _f OPersonal Services ■Supplies & Materials OOther Services/Charges OPurchased Services ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 75 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimate 31,692 32,000 32,250 Monthly $ 0.02 $ 0.03 $ 0.03 Annual $ 0.19 $ 0.31 $ 0.31 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 75 Fund: 0101 -General Cost Center: 43100 Activitv Description The Streets and Highways Department maintains all City streets to minimize deterioration. Maintenance includes seal coating, crack sealing, pothole patching, sweeping, gravel road maintenance and wash and seal bridges. Along with road maintenance, this department is responsible for mowing ditches and trimming boulevard trees. Process Used Staff is assigned detailed work, followed by inspections. Equipment and personnel are managed to accomplish maintenance activities. Service Expenditure Hi2hli2hts Minimal changes to Budget 2015 as compared to Current 2014. The increase is largely due to a COLA, increase in the cost of health benefits and a change in FTE allocations. Road Markings/Striping (intersections) Actual Current Budgeted Performance Measures 2013 2014 2015 Asphalt Streets Maintained (miles) 191.5 195 196 Gravel Roads Maintained (miles) 6.5 6.5 6.5 Cul-de-sacs & Deadends Maintained 328 332 336 Road Markings/Striping (intersections) 152 160 160 Street Sweeping (miles) 383 387 388 Gravel Usage (tons) 400 300 500 Asphalt Usage (tons) 260 300 300 Spray Patcher - Rock (tons) 180 200 250 Sorav Patcher - Oil (aallons) 3.132 3.000 4.000 Department: Streets & Highways Director/Manager: Street Supervisor Actual Staffing Levels 2013 FTE Equivalents 4.97 Service Expenditures By Cate2ory Current 2014 4.87 Current 2014 $ 437,517 53,550 84,911 29,600 605,578 Budgeted 2015 5.20 Budgeted 2015 $ 453,235 53,550 87,279 31,600 625,664 ® Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Service Expenditures 2013 Personal Services $ 414,130 Supplies & Materials 64,046 Other Services / Charges 83,375 Purchased Services 11,202 TOTAL 572,753 Service Expenditures By Cate2ory Current 2014 4.87 Current 2014 $ 437,517 53,550 84,911 29,600 605,578 Budgeted 2015 5.20 Budgeted 2015 $ 453,235 53,550 87,279 31,600 625,664 ® Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ---------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 76 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 1.51 $ 1.58 $ 1.62 Annual $ 18.07 $ 18.92 $ 19.40 ---------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 76 Fund: 0101 -General Department: Snow & Ice Cost Center: 43200 Director/Manager: Street Supervisor Activitv Description All Public Works Departments provide snow removal services for 198 miles of city streets and 330 cul-de-sacs. The goal is to provide convenient, reasonably safe travel and to prevent deterioration of the streets due to winter conditions. Process Used Snowplows, equipped with underbody plows, and salt brine sanders are used to clear city streets. The streets are cleared on a systematic basis as soon as practical after a snowstorm per city policy. Service Expenditure Highlights Personal Services are allocated based on time spent removing snow and ice from roads, trails, and/or parking lots. The increase in Budget 2015 is due to a COLA and increase is the cost of health benefits. Actual Current Budgeted Performance Measures 2013 2014 2015 Miles of streets plowed 198 198 200 Cul-de-sacs 328 332 336 Sand/Salt Usage (tons) 2,100 1,900 2,000 Brine Usaae (aah 6.000 6.000 6.500 Service Expenditures By Category ®Personal Services `! ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 1.66 $ 1.37 $ 1.39 Annual $ 19.90 $ 16.39 $ 16.74 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 77 Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 3.44 2.71 2.65 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 287,385 $ 242,700 $ 253,433 Supplies & Materials 190,465 127,300 127,800 Other Services / Charges 152,949 152,949 157,537 Purchased Services - 1,530 1,000 TOTAL 630,799 524,479 539,770 Service Expenditures By Category ®Personal Services `! ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 1.66 $ 1.37 $ 1.39 Annual $ 19.90 $ 16.39 $ 16.74 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 77 Fund: 0101 -General Cost Center: 43300 Activitv Description Installs new signage and replaces/repairs existing signs. All signage for streets and highways are in compliance with Federal, State, County and City guidelines. The ultimate goal is the safety of pedestrians and to provide traffic directional information for safe travel through the city. Signage for city parks, trails, special events, ordinances, seasonal road restrictions, traffic counts and barricades are also provided by the Sign Department. Sign data such as location, type and quality of signs is being collected and data entry completed on a sign database for sign inventory. Process Used City staff / Engineers provide data regarding signage for new developments, update existing signage and any other related sign changes. City staff, engineers, residents, local sheriff, Public Works and the general public also provide notification for necessary repairs for damaged signs. Service Expenditure Highlights Minimal changes to Budget 2015 as compared to Current 2014. Department: Street Signs Director/Manager: Street Supervisor Service Expenditure By Categor Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents 1.34 1.34 1.41 2015 Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ 120,942 $ 135,103 $ 138,707 Supplies & Materials 27,258 54,250 48,150 Other Services / Charges 14,661 13,421 15,176 Purchased Services - - 1,500 TOTAL 162,861 202,774 203,533 Service Expenditure By Categor 78 Actual Current Budgeted °"°'°"aSe° Se-ces Performance Measures 2013 2014 2015 Sign Compliant Upgrades (# of zones) 1 0.75 1.25 Damaged/Repair/Replace (# of signs) 150 150 150 Upgrade Street Signs (6" to 9" signs) 60 75 100 Actual Current Budgeted All Parks and Trail Signs 50 60 75 Expenditures Per Capita 2013 2014 2015 Traffic Counts (locations) 10 52 10 Population - Estimates 31,692 32,000 32,250 Sign Inventory / ID'ed (# of zones) 1 1 1 Monthly $ 0.43 $ 0.53 $ 0.53 Speed Limit Signs (35mph) 20 25 25 Annual $ 5.14 $ 6.34 $ 6.31 ---------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 78 Fund: 0101 -General Department: Traffic Signals Cost Center: 43400 Director/Manager: City Engineer Activitv Description Actual Current Budgeted Under the Anoka County Cost Share Policy, the City of Andover is responsible Staffing Levels 2013 2014 2015 for 1) the electrical cost of the overhead street lights at intersections and 2) the FTE Equivalents N/A N/A N/A power of the traffic signal and maintenance costs. The City has wayside horns at the railroad tracks at Andover Blvd NW and Actual Current Budgeted Crosstown Blvd NW. Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Process Used Supplies & Materials - - - Intersections are signalized at various locations within the community based on Other Services / Charges 19,705 26,000 26,000 the Anoka County cost share policy and the need of the community. Purchased Services 6,536 9,000 9,000 TOTAL 26,241 35,000 35,000 Wayside horns have been installed to reduce the train horn noise at the following locations: Andover Blvd NW and Crosstown Blvd NW. Service Expenditures By Cate2ory Service Expenditure Hi2hli2hts The City has hired the Anoka County Highway Department to maintain all the traffic signals and EVP systems throughout Andover and expenses continue to rise both � J in actual costs and increased number of signals and EVP systems. Connexus ®Personal Services Energy maintains the overhead street lights and 5 - 10 go out every year. Wayside ■Supplies B Materials horns require a monthly inspection/service visit and a bi-annual complete overview l GOther Services/Charges of the system. P—hased Services Actual Current Budgeted Performance Measures 2013 2014 2015 Traffic Signals: Actual Current Budgeted Within the Community 17 17 18 Expenditures Per Capita 2013 2014 2015 Shared (Anoka & Coon Rapids) 7 7 7 Population - Estimates 31,692 32,000 32,250 Wayside Horns 2 2 2 Monthly $ 0.07 $ 0.09 $ 0.09 Annual $ 0.83 $ 1.09 $ 1.09 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 79 Fund: 0101 -General Department: Street Lighting Cost Center: 43500 Director/Manager: City Engineer Activitv Description Street lighting and safety lighting provides a safety measure for both pedestrians and the motoring public. Process Used Street lights are installed at critical intersections of county roads and city streets, in addition to, other safety lighting needs. Service Expenditure Highlights As the City continues to develop, new street lights are added with new and existing neighborhoods and at critical intersections within the City. Due to annual adjustments, maintenance, replacement, and/or repair of lights by Connexus Energy, the expenditures to service these lights have generally shown an upward trend in costs. Performance Measures Number of Lights installed and maintained by private utility. Actual 214 Current 2014 220 Budgeted 225 Actual Staffing Levels 2013 FTE Equivalents N/A Service Expenditures By Category Actual Expenditures Per Capita 2013 Population - Estimates 31,692 Monthly $ 0.08 Annual $ 1.00 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 80 Current Budgeted 2014 2015 N/A N/A Current 2014 36,000 400 36,400 Budgeted 2015 36,000 400 36,400 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current JL, - $ 0.09 $ 1.14 Budgeted JL, - $ 0.09 $ 1.13 Actual Service Expenditures 2013 Personal Services $ - Supplies & Materials - Other Services / Charges 31,702 Purchased Services - TOTAL 31,702 Service Expenditures By Category Actual Expenditures Per Capita 2013 Population - Estimates 31,692 Monthly $ 0.08 Annual $ 1.00 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 80 Current Budgeted 2014 2015 N/A N/A Current 2014 36,000 400 36,400 Budgeted 2015 36,000 400 36,400 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current JL, - $ 0.09 $ 1.14 Budgeted JL, - $ 0.09 $ 1.13 Fund: 0101 -General Department: Street Lights Billed Cost Center: 43600 Director/Manager: City Engineer Activitv Description The street lights that are internal to a residential development are funded by that development or neighborhood. Both the operation and maintenance costs of the lights are billed to the neighborhood property owners. Process Used Connexus Energy operates, maintains and bills the residents for their street lights. Streets lights are only billed to neighborhoods that have the lights Service Expenditure Highlights Due to annual adjustments, maintenance, replacement and/or repair of lights by Connexus Energy, the expenditures to service these lights have generally shown an upward trend in costs. The billing services contract continues to increase as well. The current budget continues to be sufficient to cover these changes. Actual Current Budgeted Performance Measures 2013 2014 2015 Number of Street Liahts Billed 1.231 1.258 1.260 Service Expenditures By Category Actual Expenditures Per Capita 2013 Population - Estimates 31,692 Monthly $ 0.55 Annual $ 6.64 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 81 ®Personal Services ■Supplies & Materials OOther Services & Charges OPurchased Services Current Budgeted 2014 2015 32,000 32,250 $ 0.55 $ 0.56 $ 6.56 $ 6.70 Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services & Charges 181,812 185,000 190,000 Purchased Services 28,519 25,000 26,000 TOTAL 210,331 210,000 216,000 Service Expenditures By Category Actual Expenditures Per Capita 2013 Population - Estimates 31,692 Monthly $ 0.55 Annual $ 6.64 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 81 ®Personal Services ■Supplies & Materials OOther Services & Charges OPurchased Services Current Budgeted 2014 2015 32,000 32,250 $ 0.55 $ 0.56 $ 6.56 $ 6.70 Fund: 0101 -General Cost Center: 45000 Activitv Description The Parks Department maintains the entire City park and trail system. Most of the upgrades and additional developments of the parks are also done by the parks staff. Maintenance tasks include playground and play structures, ball infields, ice rinks, buildings and shelters, landscaping, trees and plantings, irrigation systems, painting, blacktop repair, trash and litter control, various construction projects, wood and metal fabrication, lighting and electrical, trail sign installs, and all turf and seed upkeep. Process Used The top priority for the Parks Department is to provide a safe product or facility for all the public to use. Provide diverse activities for all groups and associations through the use of city parks and/or trail systems. Service Expenditure Highlights Budget 2015 includes an increase in full time staffing, in addition to, a COLA and an increase in the cost of health benefits. It also includes increases in most areas due to the addition of a newly constructed 40 acre sports complex - three full size lighted fields for soccer, la cross and football. Performance Measures Number of City Parks maintained Actual 2013 50 Current 2014 51 Budgeted 2015 51 Total acreage mowed 318 232 232 Ballfields maintained 28 28 29 Number of playgrounds 39 38 38 Total soccer fields maintained 20 16 16 Miles of trail maintained 35 33 33.5 Ice Rinks/ Warmina Houses 12/4 12/4 12/4 Department: Parks & Recreation Director/Manager: Parks Maintenance Supervisor Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 82 Budgeted 2015 8.51 Budgeted 2015 $ 779,205 91,400 234,733 64,000 1,169,338 OPersonal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Actual Current Staffing Levels 2013 2014 FTE Equivalents 7.14 7.61 $ 34.42 Actual Current Service Expenditures 2013 2014 Personal Services $ 627,427 $ 735,099 Supplies & Materials 69,619 87,900 Other Services / Charges 200,140 219,427 Purchased Services 49,359 59,000 TOTAL 946,545 1,101,426 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 82 Budgeted 2015 8.51 Budgeted 2015 $ 779,205 91,400 234,733 64,000 1,169,338 OPersonal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current 2013 2014 31,692 32,000 $ 2.49 $ 2.87 $ 29.87 $ 34.42 Budgeted 2015 32,250 $ 3.02 $ 36.26 Fund: 0101 -General Cost Center: 46000 Activitv Description The Recycling Department provides recycling opportunities to all city residents. The goal is to provide this service in a cost effective manner. Process Used Refuse and recycling services are provided curbside by licensed haulers in an open hauling system. A drop off recycling site is provided by the City. Recycling bins are also available through the City. New recycling materials are offered as soon as they become feasible. Provides special educational programs for Andover schools and senior apartment complexes to promote waste reduction and recycling Service Expenditure Highlights Actual 2013 included the relocation of the recycling center just west of the water treatment facility. It was constructed over 2012 and 2013 and included a new building and a used oil dumping station. The whole area was paved and surrounded by security fencing. Staffing Levels FTE Equivalents Department: Recycling Director/Manager: Recycling Coordinator Actual Current Budgeted 2013 2014 2015 1.27 1.26 1.23 Actual Current Budgeted Performance Measures 2013 2014 2015 Schools with recycling bins 6 6 6 Recycling Days 6 13 13 Recvclina collection tonnaae 3.990 3.900 3.900 Staffing Levels FTE Equivalents Department: Recycling Director/Manager: Recycling Coordinator Actual Current Budgeted 2013 2014 2015 1.27 1.26 1.23 Current Actual Service Expenditures 2013 Personal Services $ 80,973 Supplies & Materials 5,567 Other Services / Charges 2,908 Purchased Services 34,148 Capital Outlay 54,514 TOTAL $ 178,110 Service Expenditures By Category Current Budgeted 2014 2015 $ 86,936 $ 88,564 7,875 7,375 2,661 2,681 36,500 36,500 133,972 135,120 _ ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ®Capital Outlay -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 83 Actual Current Budgeted Expenditures Per Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 0.47 $ 0.35 $ 0.35 Annual $ 5.62 $ 4.19 $ 4.19 -------------------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 83 Fund: Cost Center: 0101 -General 49100 Department: Director/Manager: Unallocated Finance Director Staffing Levels 2013 2014 2015 Activitv Description Unallocated contains funding for the unexpected and miscellaneous items not directly chargeable to a specific activity. Process Used Annually the City reviews the miscellaneous activities funding levels and based on past experiences does budget a contingency amount for unexpected expenditures Service Expenditure Hi2hli2hts Actual 2013 included a transfer to fund the 40 acre park project. Service Expenditures By Catci!or Actual Current Budgeted Staffing Levels 2013 2014 2015 FTE Equivalents N/A N/A N/A Monthly Actual Current Budgeted Service Expenditures 2013 2014 2015 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 75,510 89,328 70,328 Purchased Services - - - Other Uses 135,000 - - TOTAL 210,510 89,328 70,328 Service Expenditures By Catci!or ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 84 Actual Current Budgeted Expenditures PerExpcnditures Pcr Capita ■Personal Services 2014 2015 Supplies & Matenals 31,692 32,000 OCther Services / Charges Monthly $ 0.55 OPurchased Services $ 0.18 Annual Baher Uses ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 84 Actual Current Budgeted Expenditures PerExpcnditures Pcr Capita 2013 2014 2015 Population - Estimates 31,692 32,000 32,250 Monthly $ 0.55 $ 0.23 $ 0.18 Annual $ 6.64 $ 2.79 $ 2.18 ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 84 CITY OF ANDOVER, MINNESOTA 2015 ANNUAL BUDGET SPECIAL REVENUE FUNDS DEFINITION: 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. 85 This page left blank intentionally. 86 City of Andover Special Revenue Funds 2015 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 Proceeds from Sale of Property 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: $ 441,928 $ 407,587 $ 407,587 $ 344,482 39,913 9,828 684,459 (9,241) 831,940 1,556,899 1,556,899 1,998,827 540,877 75,807 168,224 411,199 14,185 1,210,292 380,948 1,591,240 40,000 37,500 601,500 7,200 812,100 1,498,300 1,498,300 1,905,887 446,540 71,270 210,380 466,547 1,194,737 377,098 1,571,835 40,000 12,500 668,557 7,400 850,823 1,579,280 1,579,280 1,986,867 496,540 71,320 215,280 482,147 1,265,287 377,098 1,642,385 40,000 37,500 617,800 7,500 820,900 1,523,700 1,523,700 1,868,182 506,034 72,370 255,475 491,397 14,000 1,339,276 371,598 1,710,874 Fund Balance, December 31 $ 407,587 $ 334,052 $ 344,482 $ 157,308 87 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Proceeds from Sale of Property 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: $ 441,928 $ 407,587 $ 407,587 $ 344,482 39,913 9,828 684,459 (9,241) 831,940 1,556,899 1,556,899 1,998,827 540,877 75,807 168,224 411,199 14,185 1,210,292 380,948 1,591,240 40,000 37,500 601,500 7,200 812,100 1,498,300 1,498,300 1,905,887 446,540 71,270 210,380 466,547 1,194,737 377,098 1,571,835 40,000 12,500 668,557 7,400 850,823 1,579,280 1,579,280 1,986,867 496,540 71,320 215,280 482,147 1,265,287 377,098 1,642,385 40,000 37,500 617,800 7,500 820,900 1,523,700 1,523,700 1,868,182 506,034 72,370 255,475 491,397 14,000 1,339,276 371,598 1,710,874 Fund Balance, December 31 $ 407,587 $ 334,052 $ 344,482 $ 157,308 87 City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 513,254 $ 405,838 $ 405,838 $ 319,338 37,306 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 513,254 $ 405,838 $ 405,838 $ 319,338 37,306 30,000 36,620 15,600 (2,996) 5,000 5,000 5,000 6,620 - 5,508 - 40,930 35,000 47,128 20,600 40,930 35,000 47,128 20,600 554,184 440,838 452,966 339,938 106,158 51,828 51,828 53,149 8,351 18,200 18,200 18,200 7,989 63,750 48,750 78,750 11,663 14,850 14,850 14,850 14,185 - - - 148,346 148,628 133,628 164,949 148,346 148,628 133,628 164,949 $ 405,838 $ 292,210 $ 319,338 $ 174,989 88 Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Hiahliahts 2013, 2014 & 2015 includes funding for monument entrance signs. EDA Budget provides for ongoing maintenance around the Andover Station Development area. In 2015, charges for services revenue is reduced due to the decertification of TIF District 1-2, of which this fund would receive TIF administration fees. 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 89 City of Andover Special Revenue Funds Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 90 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 90 Fund: Community Development Block Grant Activity Type/Code: Special Revenue Expenditure Hiahliahts This was a new fund created in 2004 to track the Community Development Block Grant (CDBG) Rental Rehab program. In 2015, 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 9E City of Andover Special Revenue Funds Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses $ (249,440) $ (210,573) $ (210,573) $ (184,088) 587,356 (5,510) 799,727 1,381,573 1,381,573 1,132,133 393,355 66,992 115,777 394,984 971,108 371,598 1,342,706 548,500 798,600 1,347,100 1,347,100 1,136,527 357,220 49,750 82,500 417,697 907,167 371,598 1,278,765 594,300 816,900 1,411,200 1,411,200 1,200,627 407,220 49,800 100,400 455,697 1,013,117 371,598 1,384,715 577,200 804,400 1,381,600 1,381,600 1,197,512 414,558 50,850 91,000 438,947 14,000 1,009,355 371,598 1,380,953 Fund Balance, December 31 $ (210,573) $ (142,238) $ (184,088) $ (183,441) 92 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses $ (249,440) $ (210,573) $ (210,573) $ (184,088) 587,356 (5,510) 799,727 1,381,573 1,381,573 1,132,133 393,355 66,992 115,777 394,984 971,108 371,598 1,342,706 548,500 798,600 1,347,100 1,347,100 1,136,527 357,220 49,750 82,500 417,697 907,167 371,598 1,278,765 594,300 816,900 1,411,200 1,411,200 1,200,627 407,220 49,800 100,400 455,697 1,013,117 371,598 1,384,715 577,200 804,400 1,381,600 1,381,600 1,197,512 414,558 50,850 91,000 438,947 14,000 1,009,355 371,598 1,380,953 Fund Balance, December 31 $ (210,573) $ (142,238) $ (184,088) $ (183,441) 92 Fund: Community Center Activity Type/Code: Special Revenue Expenditure Hiahliahts 2009 was the first year the YMCA made a full lease payment of $635,000. The transfer out is the difference between the tax levied for the Community Center debt service and the total annual debt service for the Community Center The capital outlay expenditure for 2015 is for a new floor scrubber that's used continuously throughout the facility. Department Head: Recreation Facility Manager General Activity Description This fund accounts for the operations of the Andover/YMCA Community Center, particularly the ice arena, field house and concessions. The aquatic's portion of the Community Center is under the operations of the YMCA. Process Used The Community Center construction started in 2004 and was completed in the summer of 2005. The facility will be managed by the Recreational Facility Manager with oversight by a Community Center Advisory Board and the City Council. The YMCA is a long-term tenant and started making lease payments in 2008. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 93 City of Andover Special Revenue Funds Drainage and Mapping Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 106,061 $ 132,453 $ 132,453 $ 137,669 34,635 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 106,061 $ 132,453 $ 132,453 $ 137,669 34,635 8,000 (346) 1,200 34,289 9,200 34,289 9,200 18,421 1,200 19,621 19,621 8,000 1,200 9,200 9,200 140,350 141,653 152,074 146,869 464 2,300 2,300 2,300 3,528 6,105 6,105 7,000 3,905 3,400 6,000 7,000 7,897 11,805 14,405 16,300 7,897 11,805 $ 132,453 $ 129,848 94 14,405 $ 137,669 16,300 $ 130,569 Fund: Drainage and Mapping Activity Type/Code: Special Revenue Expenditure Hiahliahts 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 95 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 $ 3,735 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 3,735 $ 4,089 $ 4,089 $ 1,595 $ 4,089 $ 1,695 $ 1,595 39,913 40,000 40,000 40,000 (131) 100 - 100 39,782 40,100 40,000 40,100 40,100 39,782 40,000 40,100 43,517 44,189 44,089 41,695 21,284 16,359 16,359 16,738 - 520 520 520 17,977 25,415 25,415 23,625 167 200 200 200 39,428 42,494 42,494 41,083 39,428 42,494 42,494 41,083 $ 4,089 $ 1,695 $ 1,595 $ 612 96 Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Expenditure Hiahliahts 2015 includes a increase in funding to the LRRWMO of $1,300 due to the anticipation of the fourth generation plan. Department Head: Assistant City Engineer General Activity Description The function of the Lower Rum River Watershed Management Organization (LRRWMO) is to provide for: conservation of water and natural resources; prevention and alleviation of flood damage; and regulation of creeks, lakes, water courses and storm water conveyance systems for domestic, recreational and public use across municipal boundaries. To achieve this purpose, state law gives watershed management organizations several powers, among which are: 1. Responsibility for preserving natural retention areas. 2. Preparation of plans for water management. 3. Review of municipal water management plans and of projects directly affecting the water resources of the watershed. 4. Review of local land use in the absence of an approved municipal surface water management plan. 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 LRRWMO. 8. Levying of taxes and assessments for the financing of the previously mentioned activities and for general administration of the organization. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 97 City of Andover Special Revenue Funds Forestry Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,130 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Intergovernmental 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 $ 1,130 $ 3,559 $ 3,559 $ 4,126 9,828 12,500 12,500 12,500 14 100 100 100 4,753 6,500 8,967 6,500 14,595 19,100 21,567 19,100 14,595 19,100 21,567 19,100 15,725 22,659 25,126 23,226 12,166 19,000 21,000 19,000 19,000 12,166 21,000 19,000 $ 3,559 $ 3,659 $ 4,126 $ 4,226 98 Fund: Forestry Activity Type/Code: Special Revenue Expenditure Hii!hlii!hts This fund tracks forestry -related grants with state agencies like the Minnesota Department of Natural Resources (DNR) and administers the bare root tree sale. Department Head: Dir of PW / City Engineer General Activity Description Forestry shall preserve Andover's forest resources and develop control plans to ensure preservation and/or restoration of these resources. Process Used The City utilizes the Natural Resources Technician to administer the annual bare root tree sale, coordinate various tree plantings with local organizations like the Eagle Scouts, and monitor preservation and disease tree management grants. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 0 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: Fund Balance, December 31 $ 57,047 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 57,047 $ 45,008 $ 45,008 $ 24,581 25,162 10,000 14,216 12,000 (385) 500 500 500 24,777 10,500 14,716 12,500 10,500 24,777 14,716 12,500 81,824 55,508 59,724 37,081 20,080 21,133 21,133 21,589 - 500 500 500 7,051 7,610 7,610 10,100 335 400 400 400 27,466 29,643 29,643 32,589 9,350 5,500 5,500 - 36,816 35,143 35,143 32,589 $ 45,008 $ 20,365 $ 24,581 $ 4,492 we] Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue Expenditure Hiahliahts The transfer to the Road & Bridge Capital Projects is for the degredation of roadways associated with right-of-way permits. The increase in 2013 in revenues is due to a county -wide connectivity project, connecting all county and city buildings including fire stations, city halls, government centers, etc. 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA on 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 $ 8,825 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 8,825 $ 26,085 $ 26,085 $ 39,833 $ 26,085 $ 27,085 $ 39,833 156 - 300 300 20,840 7,000 19,448 10,000 20,996 7,000 19,748 10,300 7,000 20,996 19,748 10,300 29,821 33,085 45,833 50,133 3,736 6,000 6,000 26,000 3,736 6,000 6,000 26,000 $ 26,085 $ 27,085 $ 39,833 $ 24,133 Fund: Charitable Gambling Activity Type/Code: Special Revenue Expenditure Hiahliahts This is a new fund created in 2004 to track the donations received from the the Andover Hockey Association and Andover Football Association from from their gambling activities. 2015 includes funding towards the Alexandra House and Youth First. Funding for these expenditures is 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 103 City of Andover Special Revenue Funds Construction Seal Coating Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,316 $ 1,128 $ 1,128 $ 1,428 (43) (43) 5,000 5,000 5,000 300 300 300 5,300 5,300 5,300 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,316 $ 1,128 $ 1,128 $ 1,428 (43) (43) 5,000 5,000 5,000 300 300 300 5,300 5,300 5,300 145 5,000 5,000 5,000 (43) 5,300 5,300 5,300 1,273 6,428 6,428 6,728 145 5,000 5,000 5,000 145 5,000 5,000 5,000 $ 1,128 $ 1,428 $ 1,428 $ 1,728 104 Fund Construction Seal Coating Activity Type/Code: Special Revenue Expenditure Hiahliahts The Construction Seal Coating Special Revenue Fund was established in 1996 and is utilized for the first application of crack seal and seal coat in new development. Department Head: Dir of PW / City Engineer General Activity Description The Construction Seal Coating Special Revenue Fund accounts for contributions associated with land development to be used for the respective developments first application of crack seal and seal coat. Process Used The City has an annual crack seal and seal coat program. Currently the City is divided into nine zones and these developments are done within four years of being constructed. Crack sealing is completed one year prior to seal coating. This allows the crack sealing material to cure and minimize bleed through once seal coated. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 105 This page left blank intentionally. 106 CITY OF ANDOVER, MINNESOTA 2015 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. 107 This page left blank intentionally. 108 City of Andover Debt Service Funds 2015 Budget - All Debt Service Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Intergovernmental 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 Redemption of Refunded Bonds Total Other Uses: Total Expenditures and Other Uses: Fund Balance, December 31 $ 19,019,418 $ 17,767,831 $ 17,767,831 $ 1,190,895 1,962,018 237,890 697,403 2,897,311 756,598 3,653,909 22,673,327 1,689,000 1,262,302 5,509 2,956,811 48,685 1,900,000 1,948,685 2,071,066 11,417 59,685 2,142,168 753,021 2,895,189 20,663,020 2,140,000 915,187 12,105 3,067,292 10,070 16,455,000 16,465,070 2,071,066 61,680 51,110 2,183,856 752,559 2,936,415 20,704,246 2,140,000 900,505 7,895 3,048,400 9,951 16,455,000 16,464,951 2,136,065 2,136,065 371,598 2,507,663 3,698,558 1,765,000 470,688 2,500 2,238,188 47,632 47,632 4,905,496 19,532,362 19,513,351 2,285,820 $ 17,767,831 $ 1,130,658 $ 1,190,895 $ 1,412,738 IM Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental 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 Redemption of Refunded Bonds Total Other Uses: Total Expenditures and Other Uses: Fund Balance, December 31 $ 19,019,418 $ 17,767,831 $ 17,767,831 $ 1,190,895 1,962,018 237,890 697,403 2,897,311 756,598 3,653,909 22,673,327 1,689,000 1,262,302 5,509 2,956,811 48,685 1,900,000 1,948,685 2,071,066 11,417 59,685 2,142,168 753,021 2,895,189 20,663,020 2,140,000 915,187 12,105 3,067,292 10,070 16,455,000 16,465,070 2,071,066 61,680 51,110 2,183,856 752,559 2,936,415 20,704,246 2,140,000 900,505 7,895 3,048,400 9,951 16,455,000 16,464,951 2,136,065 2,136,065 371,598 2,507,663 3,698,558 1,765,000 470,688 2,500 2,238,188 47,632 47,632 4,905,496 19,532,362 19,513,351 2,285,820 $ 17,767,831 $ 1,130,658 $ 1,190,895 $ 1,412,738 IM City of Andover Debt Service Funds Certificates/Capital Notes - 2011A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 102,115 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 102,115 $ 105,901 $ 105,901 $ - 101,727 - - - (899) - - - 100,828 - - - 100,828 - - - 202,943 105,901 105,901 - 94,000 95,000 95,000 - 2,840 950 950 - 202 500 - - 97,042 96,450 95,950 - - 10,070 9,951 - 97,042 106,520 105,901 - $ 105,901 $ (619) $ - $ - Fund: 3210 Cost Center: 2011A G.O. Equipment Certificates Activity Type/Code: Debt Service This fund will be closed in 2014. 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 $265,000 of Capital Notes in 2011 to facilitate the purchase of new equipment. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA HE City of Andover Debt Service Funds Certificates/Capital Notes - 2012A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 127,239 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 127,239 $ 236,730 $ 236,730 $ 365,580 $ 236,730 $ 364,530 $ 365,580 124,978 140,000 140,000 140,000 1,033 - 1,000 - 126,011 140,000 141,000 140,000 140,000 126,011 141,000 140,000 253,250 376,730 377,730 505,580 15,893 11,700 11,700 11,700 627 500 450 500 16,520 12,200 12,150 12,200 16,520 12,200 12,150 12,200 $ 236,730 $ 364,530 $ 365,580 $ 493,380 Fund: 3211 Cost Center: 2012A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2015 $ 11,700 $ - $ 11,700 2016 61,200 50,000 11,200 2017 540,350 535,000 5,350 $ 613,250 $ 585,000 $ 28,250 Process Used The City issued $585,000 of Capital Notes in 2012 to facilitate the purchase of new equipment. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 113 City of Andover Debt Service Funds Certificates/Capital Notes - 2014 G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes 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 Actual 1 Adopted Estimate Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues General Property Taxes 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 31 114 260,000 - 260,000 260,000 296,055 - 260,000 296,055 260,000 - 260,000 260,000 556,055 - - - 225,000 - 14,679 - 31,926 - - - 500 - 14,679 - 257,426 - 14,679 257,426 - $ - $ 245,321 $ 260,000 $ 298,629 114 Fund: 3212 Cost Center: 2014A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2015 $ 256,926 $ 225,000 $ 31,926 2016 283,350 260,000 23,350 2017 278,800 260,000 18,800 2018 278,550 265,000 13,550 2019 278,200 270,000 8,200 2020 277,750 275,000 2,750 $ 1,653,576 $ 1,555,000 $ 98,576 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $1,355,000 of Capital Notes in 2014 to facilitate the purchase of equipment. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 115 City of Andover Debt Service Funds General Obligation Bonds - 2004A G.O. Capital Improvement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 $ 36,875 Revenues General Property Taxes 378,253 - - - Investment Income (3,309) - - - Total Revenues: 374,944 - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 374,944 - - - Total Available: 411,819 - - - Expenditures Debt Service Principal 330,000 - - - Interest 33,134 - - - Other - - - - Total Expenditures: 363,134 - - - Other Uses Operating Transfers Out 48,685 - - - Total Other Uses: 48,685 - - - Total Expenditures and Other Uses: 411,819 - - Fund Balance, December 31 $ - 116 Fund: 3301 Cost Center: 2004A G.O. Capital Improvement Bonds Activity TypelCode: Debt Service This fund was closed in 2013. Department Head: Finance Director General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $3,890,000 of General Obligation Bonds in 2004 to finance the purchase of the Public Works Facility from the Andover Economic Development Authority and the construction of Fire Station #3. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 117 City of Andover Debt Service Funds General Obligation Bonds - 2012B G.O. Capital Improvement Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Redemption of Refunded Bonds Total Expenditures and Other Uses Fund Balance, December 31 $ 1,582,758 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 Redemption of Refunded Bonds Total Expenditures and Other Uses Fund Balance, December 31 $ 1,582,758 $ 25,790 $ 25,790 $ 56,955 141,286 561,015 561,015 540,120 (975) - (5,000) - 140,311 561,015 556,015 540,120 140,311 556,015 561,015 540,120 1,723,069 586,805 581,805 597,075 100,000 500,000 500,000 500,000 41,652 24,400 24,400 14,400 627 500 450 500 142,279 524,900 524,850 514,900 1,555,000 - - - 1,697,279 524,900 524,850 514,900 $ 25,790 $ 61,905 $ 56,955 $ 82,175 118 Fund: 3303 Cost Center: 2012B G.O. Capital Improvement Refunding Bonds Department Head: Finance Director Activit Type/Code: Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2015 $ 514,400 $ 500,000 $ 14,400 2016 474,700 470,000 4,700 $ 989,100 $ 970,000 $ 19,100 Process Used The City sold $3,890,000 of General Obligation Bonds in 2004 to finance the purchase of the Public Works Facility from the Andover Economic Development Authority and the construction of Fire Station #3. This issue will be used to refund the original issue sold in 2004. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA M City of Andover Debt Service Funds Lease Revenue Bonds - 2004 EDA Public Facility Lease Revenue 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 $ 680,863 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 680,863 $ 513,645 $ 513,645 $ - 452,004 181,803 181,803 - (5,084) - (401) - 446,920 181,803 181,402 - 371,598 206,561 212,356 - 818,518 388,364 393,758 - 1,499,381 902,009 907,403 - 105,000 470,000 470,000 - 878,534 434,373 434,373 - 2,202 2,500 3,030 - 985,736 906,873 907,403 - 985,736 906,873 907,403 - $ 513,645 $ (4,864) $ - $ - 120 Fund: 3402 Cost Center: 2004 EDA Public Facility Lease Revenue Bonds Activitv Tvpe/Code: Debt Service 1111111MMITOUT211176=156=2 off 111W41111151 These bonds were refunded in 2014 by refunding bonds issued on 12/01/06 and 01/01/2007 for $9,755,000 and $6,700,000, respectively. Department Head: Finance Director General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $19,580,000 of Lease Revenue Bonds in 2004 to finance the construction of a community center. Approximately 50% of the debt will be paid for by a long-term lease arrangement with the YMCA of Minneapolis. The YMCA will run a full service YMCA out of the Community Center building. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 121 City of Andover Debt Service Funds Lease Revenue Bonds - 2006 EDA Public Facility Lease Revenue Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Redemption of Refunded Bonds Total Expenditures and Other Uses: Fund Balance, December 31 $ 9,283,885 $ 9,706,648 $ 9,706,648 422,965 35,353 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Redemption of Refunded Bonds Total Expenditures and Other Uses: Fund Balance, December 31 $ 9,283,885 $ 9,706,648 $ 9,706,648 422,965 35,353 35,266 - 17,535 14,826 422,965 52,888 50,092 9,706,850 9,759,536 9,756,740 202 2,000 1,740 - 202 2,000 1,740 - - 9,755,000 9,755,000 202 9,757,000 9,756,740 $ 9,706,648 $ 2,536 $ - 122 Fund: 3403 Cost Center: 2006A EDA Public Facility Lease Revenue Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service This fund will be closed in 2014. 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 refund a portion of the original issue sold in 2004. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 123 City of Andover Debt Service Funds Lease Revenue Bonds - 2007 EDA Public Facility Lease Revenue Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Redemption of Refunded Bonds Total Expenditures and Other Uses: Fund Balance, December 31 $ 6,372,289 $ 6,662,794 $ 6,662,794 290,707 24,332 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Redemption of Refunded Bonds Total Expenditures and Other Uses: Fund Balance, December 31 $ 6,372,289 $ 6,662,794 $ 6,662,794 290,707 24,332 24,245 - 17,397 14,311 290,707 41,729 38,556 6,662,996 6,704,523 6,701,350 202 2,000 1,350 - 202 2,000 1,350 - - 6,700,000 6,700,000 202 6,702,000 6,701,350 $ 6,662,794 $ 2,523 $ - 124 Fund: 3404 Cost Center: 2007 EDA Public Facility Lease Revenue Refunding Bonds Department Head: Finance Director Activit Type/Code: Debt Service 11i1MMTUT 111TW1156 T'ff 111W41111151 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 refund a portion of the original issue sold in 2004. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 125 City of Andover Debt Service Funds General Obligation Bonds - 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Redemption of Refunded Bonds Total Expenditures and Other Uses Fund Balance, December 31 $ 358,131 $ 35,088 $ 35,088 $ 196,051 577,945 (5,267) 572,678 740,965 740,965 740,965 (4,000) 736,965 975,652 975,652 - Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 Redemption of Refunded Bonds Total Expenditures and Other Uses Fund Balance, December 31 $ 358,131 $ 35,088 $ 35,088 $ 196,051 577,945 (5,267) 572,678 740,965 740,965 740,965 (4,000) 736,965 975,652 975,652 - 130,105 130,105 371,598 572,678 871,070 867,070 1,347,250 930,809 906,158 902,158 1,543,301 320,000 320,000 320,000 835,000 230,519 385,682 385,682 379,907 202 2,500 425 500 550,721 708,182 706,107 1,215,407 345,000 - - - 895,721 708,182 706,107 1,215,407 $ 35,088 $ 197,976 $ 196,051 $ 327,894 126 Fund: 3405 Cost Center: 2012C G.O. Abatement Bonds Department Head: Finance Director Activit Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2015 $ 1,214,907 $ 835,000 $ 379,907 2016 1,216,507 845,000 371,507 2017 1,213,732 855,000 358,732 2018 1,211,482 870,000 341,482 2019 1,208,932 885,000 323,932 2020 1,215,982 910,000 305,982 2021 1,212,632 925,000 287,632 2022 1,213,932 945,000 268,932 2023 1,209,282 960,000 249,282 2024 1,213,000 985,000 228,000 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 $20,602,491 $16,675,000 $ 3,927,491 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 127 City of Andover Debt Service Funds Permanent Improvement Revolving Bonds - 2010A G.O. PIR Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income 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 $ 9,877 $ 7,889 $ 7,889 (123) 385,000 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income 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 $ 9,877 $ 7,889 $ 7,889 (123) 385,000 381,423 380,961 384,877 381,423 380,961 394,754 389,312 388,850 375,000 385,000 385,000 - 11,450 3,850 3,850 - 415 500 - - 386,865 389,350 388,850 - 386,865 389,350 388,850 - $ 7,889 $ (38) $ - $ - 128 Fund: 3605 Cost Center: 2010A G.O. PIR Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service This fund will be closed in 2014. General Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $2,450,000 of Permanent Improvement Revolving Bonds in in 2006 to finance improvement projects in the City. This issue will be used to refund a portion of the original issue sold in 2006. ADOPTED 2015 BUDGET CITY Of ANDOVER, MINNESOTA 129 City of Andover Debt Service Funds State Aid Bonds - 2009A G.O. State Aid Road Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Intergovernmental 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 $ 285,418 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Intergovernmental 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 $ 285,418 $ 281,577 $ 281,577 $ 108,472 237,890 11,417 61,680 - (551) - - - 237,339 11,417 61,680 - 237,339 11,417 61,680 - 522,757 292,994 343,257 108,472 230,000 230,000 230,000 60,000 10,765 4,785 4,785 840 415 605 - - 241,180 235,390 234,785 60,840 - - - 47,632 241,180 235,390 234,785 108,472 $ 281,577 $ 57,604 $ 108,472 $ - 130 Fund: 3702 Cost Center: 2009A G.O. State Aid Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal 2015 $ 60,840 $ 60,000 $ 840 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $2,755,000 of G.O. State Aid Bonds in 2001 to finance state aid eligible road improvement projects in the City. This issue will be used to refund a portion of the original issue sold in 2001. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 131 City of Andover Debt Service Funds General Obligation Bonds - 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 179,968 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 $ 179,968 $ 191,769 $ 191,769 $ 203,837 185,825 187,283 187,283 184,238 (1,094) - - - 184,731 187,283 187,283 184,238 184,731 187,283 187,283 184,238 364,699 379,052 379,052 388,075 135,000 140,000 140,000 145,000 37,515 34,768 34,765 31,915 415 500 450 500 172,930 175,268 175,215 177,415 172,930 175,268 175,215 177,415 $ 191,769 $ 203,784 $ 203,837 $ 210,660 132 Fund: 3901 Cost Center: 2010A G.O. Open Space Referendum Bonds Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2015 $ 176,915 $ 145,000 $ 31,915 2016 173,942 145,000 28,942 2017 175,657 150,000 25,657 2018 176,841 155,000 21,841 2019 177,507 160,000 17,507 2020 172,827 160,000 12,827 2021 172,870 165,000 7,870 2022 172,656 170,000 2,656 $ 1,399,215 $ 1,250,000 $ 149,215 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $1,660,000 of Open Space Referendum Bonds in 2010 to finance the purchase of land to remain as open space. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 133 This page left blank intentionally. 134 CITY OF ANDOVER, MINNESOTA 2015 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. 135 This page left blank intentionally. 136 City of Andover Capital Projects Funds 2015 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 Bond Premium Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Bond Discount Total Other Uses: Total Expenditures and Other Uses Fund Balance, December 31 $ 18,634,955 $ 16,893,815 $ 16,893,815 $ 17,202,019 1,304,760 375,040 1,045,000 157,258 (97,811) 660,931 1,376,841 4,822,019 993,035 76,184 1,069,219 5,891,238 24,526,193 386,925 2,827,750 3,628,461 6,843,136 789,242 789,242 7,632,378 1,296,968 182,857 270,000 926,244 120,000 144,204 2,000 2,942,273 415,570 1,355,000 1,770,570 4,712,843 21,606,658 187,000 3,170,000 2,511,550 5,868,550 402,160 402,160 6,270,710 1,296,968 182,857 444,200 1,599,695 166,500 599,697 49,430 4,339,347 415,451 1,555,000 44,278 1,025,133 3,039,862 7,379,209 1,336,968 20,000 412,000 1,259,573 127,500 255,365 3,411,406 447,632 447,632 3,859,038 24,273,024 21,061,057 161,050 3,183,670 3,318,663 6,663,383 401,698 5,924 407,622 7,071,005 156,000 2,812,000 1,367,496 4,335,496 58,249 58,249 4,393,745 $ 16,893,815 $ 15,335,948 $ 17,202,019 $ 16,667,312 137 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 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 Bond Premium Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Bond Discount Total Other Uses: Total Expenditures and Other Uses Fund Balance, December 31 $ 18,634,955 $ 16,893,815 $ 16,893,815 $ 17,202,019 1,304,760 375,040 1,045,000 157,258 (97,811) 660,931 1,376,841 4,822,019 993,035 76,184 1,069,219 5,891,238 24,526,193 386,925 2,827,750 3,628,461 6,843,136 789,242 789,242 7,632,378 1,296,968 182,857 270,000 926,244 120,000 144,204 2,000 2,942,273 415,570 1,355,000 1,770,570 4,712,843 21,606,658 187,000 3,170,000 2,511,550 5,868,550 402,160 402,160 6,270,710 1,296,968 182,857 444,200 1,599,695 166,500 599,697 49,430 4,339,347 415,451 1,555,000 44,278 1,025,133 3,039,862 7,379,209 1,336,968 20,000 412,000 1,259,573 127,500 255,365 3,411,406 447,632 447,632 3,859,038 24,273,024 21,061,057 161,050 3,183,670 3,318,663 6,663,383 401,698 5,924 407,622 7,071,005 156,000 2,812,000 1,367,496 4,335,496 58,249 58,249 4,393,745 $ 16,893,815 $ 15,335,948 $ 17,202,019 $ 16,667,312 137 City of Andover Capital Projects Funds Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 2,876,885 34,216 (19,830) 332,853 347,239 347,239 3,224,124 7,338 966,612 973,950 4,242 978,192 $ 2,245,932 60,000 50,000 62,649 172,649 172,649 2,418,581 25,000 25,000 20,737 45,737 $ 2,245,932 60,000 50,000 376,640 486,640 486,640 2,732,572 126,224 126,224 20,737 146,961 $ 2,585,611 60,000 50,000 65,150 175,150 175,150 2,760,761 30,000 30,000 58,249 88,249 $ 2,245,932 $ 2,372,844 $ 2,585,611 $ 2,672,512 138 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 2,876,885 34,216 (19,830) 332,853 347,239 347,239 3,224,124 7,338 966,612 973,950 4,242 978,192 $ 2,245,932 60,000 50,000 62,649 172,649 172,649 2,418,581 25,000 25,000 20,737 45,737 $ 2,245,932 60,000 50,000 376,640 486,640 486,640 2,732,572 126,224 126,224 20,737 146,961 $ 2,585,611 60,000 50,000 65,150 175,150 175,150 2,760,761 30,000 30,000 58,249 88,249 $ 2,245,932 $ 2,372,844 $ 2,585,611 $ 2,672,512 138 Fund: 4110 Cost Center: Water Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects planned for 2015 include: New Development Projects $ 30,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. Projects for 2014 included: Water Trunk Extension - Bunker Lake Blvd $ 126,224 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 139 City of Andover Capital Projects Funds Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,621,489 23,110 (19,019) 103,775 107,866 400,000 507,866 5,129,355 50,902 160,288 211,190 211,190 $ 4,918,165 20,000 50,000 12,415 82,415 400,000 482,415 5,400,580 90,000 90,000 90,000 $ 4,918,165 20,000 50,000 152,864 222,864 400,000 622,864 5,541,029 90,000 90,000 90,000 $ 5,451,029 20,000 50,000 12,415 82,415 400,000 482,415 5,933,444 110,000 110,000 110,000 $ 4,918,165 $ 5,310,580 $ 5,451,029 $ 5,823,444 140 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,621,489 23,110 (19,019) 103,775 107,866 400,000 507,866 5,129,355 50,902 160,288 211,190 211,190 $ 4,918,165 20,000 50,000 12,415 82,415 400,000 482,415 5,400,580 90,000 90,000 90,000 $ 4,918,165 20,000 50,000 152,864 222,864 400,000 622,864 5,541,029 90,000 90,000 90,000 $ 5,451,029 20,000 50,000 12,415 82,415 400,000 482,415 5,933,444 110,000 110,000 110,000 $ 4,918,165 $ 5,310,580 $ 5,451,029 $ 5,823,444 140 Fund: 4120 Cost Center: Sewer Trunk Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects planned for 2015 include: New Development Projects Projects for 2014 included: Sanitary Sewer Extension - Bunker Lake Blvd $ 110,000 $ 90,000 Department Head: City Engineer General Activity Desciption The Sewer Trunk Capital Projects Fund accounts for access fees and sanitary sewer improvements. City sewage flows through a pipe and lift station system to a large sewer interceptor, which is then carried to a metro treatment plant. Process Used The Sewer and Engineering Departments continually review the system to determine the proper sizing of pipes and lift stations to process sewage. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 141 City of Andover Capital Projects Funds Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ (63,823) $ (64,940) $ (64,940) $ (64,067) (1,117) - (1,200) - 2,073 - (1,117) - 873 - (1,117) - 873 - (64,940) (64,940) (64,067) (64,067) $ (64,940) $ (64,940) $ (64,067) $ (64,067) 142 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ (63,823) $ (64,940) $ (64,940) $ (64,067) (1,117) - (1,200) - 2,073 - (1,117) - 873 - (1,117) - 873 - (64,940) (64,940) (64,067) (64,067) $ (64,940) $ (64,940) $ (64,067) $ (64,067) 142 Fund: 4130 Cost Center: Storm Sewer Activity Type/Code: Capital Projects Expenditure Hiahliahts No expenditures planned for 2015. Department Head: City Engineer General Activity Description The Storm Sewer Capital Projects Fund accounts for storm sewer fees and improvements as part of development and ongoing maintenance. Process Used The storm sewer system is continually reviewed by Public Works and Engineering through studies of storm water runoff and drainage patterns. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 143 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 $ 4,675,526 $ 3,114,711 $ 3,114,711 $ 2,967,374 1,032,176 385,121 156,086 (44,690) 3,600 1,532,293 1,025,468 140,000 926,244 2,091,712 1,025,468 300,000 1,599,695 32,000 2,957,163 1,025,468 282,000 1,259,573 2,567,041 9,350 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 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 $ 4,675,526 $ 3,114,711 $ 3,114,711 $ 2,967,374 1,032,176 385,121 156,086 (44,690) 3,600 1,532,293 1,025,468 140,000 926,244 2,091,712 1,025,468 300,000 1,599,695 32,000 2,957,163 1,025,468 282,000 1,259,573 2,567,041 9,350 5,500 5,500 47,632 1,541,643 2,097,212 2,962,663 2,614,673 6,217,169 5,211,923 6,077,374 5,582,047 2,470,978 3,110,000 3,110,000 2,772,000 631,480 - - - 3,102,458 3,110,000 3,110,000 2,772,000 3,102,458 2,772,000 3,110,000 3,110,000 $ 3,114,711 $ 2,101,923 $ 2,967,374 $ 2,810,047 144 Fund: 4140 Cost Center: Road and Bridge Activity Type/Code: Capital Projects Expenditure Hiahliahts Some of the major 2015 projects are as follows: Annual street seal coat $ 480,000 Annual street crack seal 285,000 Annual street mill and overlay 600,000 MSA - New / reconstruct routes 1,259,000 Pedestrian trail maintenance 70,000 Annual pavement markings 33,000 Curb Replacement 45,000 $ 2,772,000 Some of the major 2014 projects are as follows: Annual street seal coat $ 513,000 Annual street crack seal 213,000 Annual street mill and overlay 660,000 MSA- New / reconstruct routes 1,126,000 MSA- Intersection upgrades 455,000 Pedestrian trail maintenance 72,000 Annual pavement markings 27,000 Curb Replacement 44,000 $ 3,110,000 Department Head: City Engineer General Activity Description The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Process Used Construction projects are identified by the capital improvement process and contained in the five-year Capital Improvement Plan (CIP). The council approves the CIP annually, thereby initiating a process of feasibility study, preparation of plans and specifications, public hearings, ordering of the project, bidding the project and construction. This fund also accounts for the pavement management program, which includes annual seal coating, crack sealing and overlays for roads. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 145 City of Andover Capital Projects Funds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 198,388 $ 343,151 $ 343,151 $ 82,122 61,635 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 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 $ 198,388 $ 343,151 $ 343,151 $ 82,122 61,635 61,500 61,500 61,500 505 - 3,000 - 205,080 54,640 53,200 140,500 700 - - - 267,920 116,140 117,700 202,000 267,920 202,000 116,140 117,700 466,308 459,291 460,851 284,122 23,157 15,000 15,000 15,000 - 330,000 363,729 195,000 23,157 345,000 378,729 210,000 100,000 - - - 123,157 345,000 378,729 210,000 $ 343,151 $ 114,291 $ 82,122 $ 74,122 146 Fund: 4150 Cost Center: Park Dedication Projects Activity Type/Code: Capital Projects Expenditure Hiahliahts 2015 Projects include: Annual Miscellaneous Projects $ 15,000 Irrigation Project - Small 20,000 Pine Hills North - Phase II 70,000 Kelsey Round Lake Park Master Plan 50,000 Fencing Upgrades - Eallfield Safety Initiatives 25,000 Crooked Lake School Hockey Rink 10,000 Langseth Park Trail Improvement 20,000 $ 210,000 2014 Projects included: Annual Miscellaneous Projects $ 15,000 Rose Park - Reconstruction 200,000 Prairie Knoll Park - Pave Parking Lots 100,000 WayFinding Signs/Exercise Stations 10,000 Irrigation Project - Small 20,000 $ 345,000 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 147 City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,558,764 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,558,764 $ 1,092,916 $ 1,092,916 $ 848,867 $ 1,092,916 $ 862,986 (10,063) 10,000 6,000 6,000 47 - - - (10,016) 10,000 6,000 6,000 48,685 10,070 9,951 - 38,669 20,070 15,951 6,000 1,597,433 1,112,986 1,108,867 854,867 - - 10,000 - 504,517 250,000 250,000 200,000 504,517 250,000 260,000 200,000 504,517 250,000 260,000 200,000 $ 1,092,916 $ 862,986 $ 848,867 $ 654,867 148 Fund: 4160 Cost Center: Building Fund Activity Type/Code: Capital Projects Expenditure Hiahliahts In 2013, the City has signed a contract for deed to take down some land adjacent to the city hall / public works campus. As part of that agreement, annual payments will be made starting in 2013 with final payment in 2018. 2015 $ 196,719 2016 196,719 2017 196,719 2018 196,719 $ 786,876 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 149 City of Andover Capital Projects Funds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 87,664 $ 106,678 $ 106,678 $ 87,598 (209) Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 87,664 $ 106,678 $ 106,678 $ 87,598 (209) - 1,000 - 19,223 14,500 14,920 37,300 19,014 14,500 15,920 37,300 14,500 15,920 19,014 37,300 106,678 121,178 122,598 124,898 $ 106,678 150 35,000 35,000 35,000 35,000 $ 86,178 $ 87,598 $ 124,898 Fund: 4170 Cost Center: Trail & Transportation Activity Type/Code: Capital Projects Department Head: Dir of PW / City Engineer Expenditure Hiahliahts General Activity Description No projects planned for 2015. 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. 2014 Projects included: WayFinding Signs/Exercise Stations $ 20,000 5' Concrete Sidewalk along Quinn St - Bunker Lk Blvd to 137th Lane 15,000 $ 35,000 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 151 City of Andover Capital Projects Funds Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total 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 $ 1,335,989 $ 687,274 $ 687,274 $ 800,837 210,949 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,335,989 $ 687,274 $ 687,274 $ 800,837 210,949 210,000 (1,464) 10,000 92,350 2,000 301,835 222,000 535,000 - 23,650 - 558,650 - 860,485 222,000 2,196,474 909,274 385,389 97,000 1,123,811 78,000 1,509,200 175,000 210,000 4,000 49,430 263,430 25,133 25,133 288,563 975,837 97,000 78,000 175,000 1,509,200 175,000 175,000 250,000 2,000 252,000 252,000 1,052,837 156,000 100,000 256,000 256,000 $ 687,274 $ 734,274 $ 800,837 $ 796,837 152 Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects outlined in the 2015 - 2019 CIP for year 2015 using the Capital Equipment Reserve Capital Projects Fund include: Using 2015 Capital Projects Reserve / levy: Annual Parking Lot Maintenance Repair/Replace Play Structures - Parks Repair/Replace Major Park Projects - Parks Replacement - Carpet / Tile Building A - Seal Floor Public Works/Community Center Master Planning Replacement - Turnout Gear Microsoft DataCenter & CAL's License Microsoft Office Upgrade Crooked Lake School Hockey Rink Using 2014 Capital Projects Reserve / levy: Annual Parking Lot Maintenance Repair/Replace Play Structures - Parks Repair/Replace Major Park Projects - Parks Tractor Blade $ 28,000 50,000 25,000 10,000 20,000 25,000 18,000 15,000 15,000 50,000 $ 256,000 $ 97,000 48,000 25,000 5,000 $ 175,000 Department Head: Finance Director General Activity Description Resources for this fund come from residual fund transfers, interest earnings, and, in 2015, a $250,000 property tax (capital) levy. Process Used During the 2015 budget process, 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 153 City of Andover Capital Projects Funds 2012A G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 293,111 $ Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 293,111 $ 50,552 $ 50,552 $ - (4,270) - - - 3,500 - - - (770) - - - 292,341 50,552 50,552 - 36 - - - 241,753 - 50,552 - 241,789 - 50,552 - 241,789 - 50,552 - $ 50,552 $ 50,552 $ - $ - 154 Fund: 4211 Cost Center: 2012A G.O. Capital Notes Activity Type/Code: Capital Projects Expenditure Hiahliahts r1i1MMI"NUT 111: ER156=�'ff rIV41111151 The following is a list of equipment purchased with the 2012 Capital Note. Vehicle / Equipment Replacements: Fire Chief's Vehicle $ 45,000 Rescue #11 55,000 Hydraulic Rescue Cutters 13,000 10 ft. Wide Trail Mower #583 65,000 New Vehicle / Equipment Thermal Imaging Camera 20,000 Front -End Loader 140,000 Cab and Snowblower Attachment 4,500 Trail Plow Attachment 5,600 $ 348,100 With interest rates being low, additional items were added to eliminate the need for another issuance in 2013. Vehicle / Equipment Replacements Trailer #T-554 $ 10,000 One -Ton Truck w/ Plow #599 65,000 Ditch Mowing Tractor w/ Mowers #115 90,000 One -Ton Truck w/ Plow #132 65,000 $ 230,000 $ 578,100 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 2012 budget process it was determined that various capital equipment was necessary. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 155 City of Andover Capital Projects Funds 2014 G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income - - 1,200 - Other Sources Bond Proceeds - 1,355,000 1,555,000 - Bond Premium - - 44,278 - Total Other Sources: - 1,355,000 1,599,278 - Total Revenues and Other Sources: - 1,355,000 1,600,478 - Total Available: - 1,355,000 1,600,478 - Expenditures Purchased Services - 55,000 29,050 - Capital Outlay - 1,300,000 1,565,504 - Total Expenditures: - 1,355,000 1,594,554 - Other Uses Bond Discount - - 5,924 - Total Other Uses: - - 5,924 - Total Expenditures and Other Uses: - 1,355,000 1,600,478 - Fund Balance, December 31 $ - $ - $ - $ - 156 Fund: 4212 Cost Center: 2014 G.O. Capital Notes Activity Type/Code: Capital Projects Expenditure Hiahliahts The following is a list of equipment purchased with a 2014 Capital Note. Capital Note. Vehicle / Equipment Replacements: New - Mobile Vehicle Lifts $ 24,000 Survey Equipment 32,000 Replacement - Ladder Truck #11 1,100,000 Replacement - Bobcat #610 36,000 Replacement - Dump Truck w/ Snow Removal Equipment 150,000 Replacement - Fire Utility #4 32,000 Replacement - Fire Utility #5 32,000 Replacement - Toro Groundmaster #559 35,000 Replacement - One Ton Truck w/ Plow #503 65,000 New - Snowblower Attachment - Belos 23,000 Replacement - Snowblower Attachment - Bobcat 7,000 New - Add Rear Wing to Plow Truck 30,000 $ 1,566,000 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 2014 budget process it was determined that various capital equipment was necessary. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 157 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 Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,211,643 $ 2,657,590 $ 2,657,590 $ 3,564,647 375,040 3,664 1,172 15,355 1,276,644 182,857 182,857 20,000 - 4,200 - 15,000 15,000 1,671,875 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Tax Increments Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,211,643 $ 2,657,590 $ 2,657,590 $ 3,564,647 375,040 3,664 1,172 15,355 1,276,644 182,857 182,857 20,000 - 4,200 - 15,000 15,000 1,671,875 182,857 202,057 35,000 49,034 - 1,000,000 - 1,720,909 182,857 1,202,057 35,000 2,932,552 2,840,447 3,859,647 3,599,647 274,962 45,000 45,000 25,000 - 250,000 250,000 500,000 274,962 295,000 295,000 525,000 274,962 295,000 295,000 525,000 $ 2,657,590 $ 2,545,447 $ 3,564,647 $ 3,074,647 158 Fund: 4501 Cost Center: Tax Increment Projects Activity Type/Code: Capital Projects Expenditure Hiahliahts 2015 Budgeted expenditures include: Administration $ 25,000 Redevelopment Site Purchases 500,000 $ 525,000 2014 Budgeted expenditures include: Administration $ 20,000 Redevelopment Site Cleanup 25,000 Redevelopment Site Purchases 250,000 $ 295,000 TIF District 1-1 was decertified in 2012 and TIF District 1-2 will be decertified in 2014. 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 2015 BUDGET CITY OF ANDOVER, MINNESOTA 159 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: Fund Balance, December 31 $ 1,063,785 $ 968,636 $ 968,636 $ 647,005 598,889 50,000 (8,625) - 590,264 50,000 590,264 50,000 60,000 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 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: Fund Balance, December 31 $ 1,063,785 $ 968,636 $ 968,636 $ 647,005 598,889 50,000 (8,625) - 590,264 50,000 590,264 50,000 60,000 50,000 3,000 3,000 63,000 53,000 63,000 53,000 1,654,049 1,018,636 1,031,636 700,005 413 3,670 685,000 381,423 380,961 - 685,413 381,423 384,631 - $ 968,636 $ 637,213 $ 647,005 $ 700,005 160 Fund: 4601 Cost Center: Permanent Improvement Revolving Activity Type/Code: Capital Projects Expenditure Hiahliahts No major expenditures are planned for 2015. The transfer for debt service in 2014 will payoff the remaining PIR bonds. Department Head: Finance Director General Activity Description The Permanent Improvement Revolving (PIR) Fund serves as a long-term funding source for large capital improvement expenditures. 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 $18.89 million of special assessments over the past 13 years. The annual cash flow of this fund is intended to eliminate unfunded projects through effective management of debt payments and project expenditures. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 161 City of Andover Capital Projects Funds 2010A G.O. Open Space Referendum Bonds 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 Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 775,534 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 775,534 $ 773,150 $ 773,150 $ 230,996 (4,384) - 2,500 1,500 3,500 - - - (884) - 2,500 1,500 (884) - 2,500 1,500 774,650 773,150 775,650 232,496 1,500 - - - - 188,550 544,654 232,496 1,500 188,550 544,654 232,496 1,500 188,550 544,654 232,496 $ 773,150 $ 584,600 $ 230,996 $ - 162 Fund: 4901 Cost Center: 2010A G.O.Open Space Referendum Bonds Activity Type/Code: Capital Projects Expenditure Hiahliahts Over the past two years, two parcels have been purchased for the preservation of open space in the City of Andover. It is anticipated that a third purchase will take place in 2014. Department Head: Finance Director General Activity Description This fund is used to finance various land acquisitions for open space preservation within the City of Andover through the use of G.O. Open Space Referendum Bonds. Process Used An Open Space Advisory Commission has been created to establish both short and long term goals, in addition to, determining the criteria for which to acquire open space. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 163 This page left blank intentionally. 164 CITY OF ANDOVER, MINNESOTA 2015 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. 165 This page left blank intentionally. 166 City of Andover Enterprise Funds 2015 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In 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: Unrestricted Net Assets, December 31 $ 5,712,214 $ 6,228,108 $ 6,228,108 $ 6,421,317 4,907,702 (21,533) 23,395 4,200 4,702 20,446 4,938,912 4,242 8,000 12,242 4,951,154 10,663,368 859,072 239,933 1,838,142 79,725 821,458 3,838,330 596,930 4,435,260 $ 6,228,108 167 4,784,280 57,000 13,000 3,000 17,500 17,000 4,891,780 20,737 20,737 4,912,517 11,140,625 957,725 275,650 2,000,687 828,806 4,062,868 596,930 4,659,798 $ 6,480,827 4,771,280 57,000 13,000 3,500 15,000 44,000 4,903,780 20,737 20,737 4,924,517 11,152,625 957,725 264,070 2,083,777 828,806 4,134, 378 596,930 4,731,308 $ 6,421,317 4,954,705 57,000 13,000 3,500 16,000 67,000 5,111,205 58,249 58,249 5,169,454 11,590,771 972,417 280,200 2,051,624 99,500 831,487 4,235,228 596,930 4,832,158 $ 6,758,613 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties 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: Unrestricted Net Assets, December 31 $ 5,712,214 $ 6,228,108 $ 6,228,108 $ 6,421,317 4,907,702 (21,533) 23,395 4,200 4,702 20,446 4,938,912 4,242 8,000 12,242 4,951,154 10,663,368 859,072 239,933 1,838,142 79,725 821,458 3,838,330 596,930 4,435,260 $ 6,228,108 167 4,784,280 57,000 13,000 3,000 17,500 17,000 4,891,780 20,737 20,737 4,912,517 11,140,625 957,725 275,650 2,000,687 828,806 4,062,868 596,930 4,659,798 $ 6,480,827 4,771,280 57,000 13,000 3,500 15,000 44,000 4,903,780 20,737 20,737 4,924,517 11,152,625 957,725 264,070 2,083,777 828,806 4,134, 378 596,930 4,731,308 $ 6,421,317 4,954,705 57,000 13,000 3,500 16,000 67,000 5,111,205 58,249 58,249 5,169,454 11,590,771 972,417 280,200 2,051,624 99,500 831,487 4,235,228 596,930 4,832,158 $ 6,758,613 City of Andover Enterprise Funds Water Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In 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: Unrestricted Net Assets, December 31 $ 2,121,235 $ 2,512,014 $ 2,512,014 $ 2,705,699 2,447,707 (6,378) 23,395 4,200 2,288 17,971 2,489,183 4,242 4,000 8,242 2,497,425 4,618,660 381,133 197,184 556,621 821,458 1,956,396 150,250 2,106,646 $ 2,512,014 168 2,349,553 15,000 13,000 3,000 7,500 17,000 2,405,053 20,737 20,737 2,425,790 4,937,804 424,687 218,250 674,662 828,806 2,146,405 150,250 2,296,655 $ 2,641,149 2,329,553 15,000 13,000 3,500 5,000 44,000 2,410,053 20,737 20,737 2,430,790 4,942,804 424,687 208,800 624,562 828,806 2,086,855 150,250 2,237,105 $ 2,705,699 2,397,686 15,000 13,000 3,500 6,000 67,000 2,502,186 58,249 58,249 2,560,435 5,266,134 431,808 222,200 677,400 4,500 831,487 2,167,395 150,250 2,317,645 $ 2,948,489 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2013 2014 2014 2015 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties 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: Unrestricted Net Assets, December 31 $ 2,121,235 $ 2,512,014 $ 2,512,014 $ 2,705,699 2,447,707 (6,378) 23,395 4,200 2,288 17,971 2,489,183 4,242 4,000 8,242 2,497,425 4,618,660 381,133 197,184 556,621 821,458 1,956,396 150,250 2,106,646 $ 2,512,014 168 2,349,553 15,000 13,000 3,000 7,500 17,000 2,405,053 20,737 20,737 2,425,790 4,937,804 424,687 218,250 674,662 828,806 2,146,405 150,250 2,296,655 $ 2,641,149 2,329,553 15,000 13,000 3,500 5,000 44,000 2,410,053 20,737 20,737 2,430,790 4,942,804 424,687 208,800 624,562 828,806 2,086,855 150,250 2,237,105 $ 2,705,699 2,397,686 15,000 13,000 3,500 6,000 67,000 2,502,186 58,249 58,249 2,560,435 5,266,134 431,808 222,200 677,400 4,500 831,487 2,167,395 150,250 2,317,645 $ 2,948,489 Fund: 5100 -Water Cost Center: 48100 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. Service Expense Highlights Budget 2015 includes the rehabilitation of a well. Every seven years the pump is pulled and inspected for wear and then the well is televised to inspect its condition. Department: Water Director/Manager: Utilities Supervisor Actual Current Budgeted Performance Measures 2013 2014 2015 Number of connections 6,375 6,418 6,488 Number of wells 8 8 8 Number of elevated storage tanks 2 2 2 Water Treatment Facility 1 1 1 Miles of water main 112 115 117 Number of hydrants 1,183 1,213 1,230 Number of valves 2,750 2,872 2,832 Department: Water Director/Manager: Utilities Supervisor Service Expenses By Category Expenses Per Connection Connections Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 169 Budgeted onir 4.00 Budgeted omr .p 4J I,000 222,200 414,300 263,100 4,500 831,487 150,250 $ 2,317,645 ■Personal SerNces ■Supplies 8 Materials OOther SerNces / Charges OPurchased SeMces ■Capital Outlay ■Debt Se—e ■Other Uses Actual Current Budgeted 9n19 9nlA )nl; U,J/J U,41U U,4UU $ 27.54 $ 29.05 $ 29.77 $ 330.45 $ 348.57 $ 357.22 Actual Current Staffing Levels 2013 2014 FTE Equivalents 4.56 4.73 Actual Current Service Expenses 2013 2014 Personal Services $ 381,132 $ 424,687 Supplies & Materials 197,183 208,800 Other Services / Charges 370,529 390,532 Purchased Services 185,102 234,030 Capital Outlay - - Debt Service 822,450 828,806 Other Uses 150,250 150,250 TOTAL $ 2,106,646 $ 2,237,105 Service Expenses By Category Expenses Per Connection Connections Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 169 Budgeted onir 4.00 Budgeted omr .p 4J I,000 222,200 414,300 263,100 4,500 831,487 150,250 $ 2,317,645 ■Personal SerNces ■Supplies 8 Materials OOther SerNces / Charges OPurchased SeMces ■Capital Outlay ■Debt Se—e ■Other Uses Actual Current Budgeted 9n19 9nlA )nl; U,J/J U,41U U,4UU $ 27.54 $ 29.05 $ 29.77 $ 330.45 $ 348.57 $ 357.22 City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 3,281,238 $ 3,358,463 $ 3,358,463 $ 3,506,015 2,061,034 (15,090) 1,958 2,475 2,050,377 4,000 2,058,105 40,000 10,000 2,108,105 2,063,105 40,000 10,000 2,113,105 2,134,919 40,000 10,000 2,184,919 2,054,377 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 3,281,238 $ 3,358,463 $ 3,358,463 $ 3,506,015 2,061,034 (15,090) 1,958 2,475 2,050,377 4,000 2,058,105 40,000 10,000 2,108,105 2,063,105 40,000 10,000 2,113,105 2,134,919 40,000 10,000 2,184,919 2,054,377 2,108,105 2,113,105 2,184,919 5,335,615 5,466,568 5,471,568 5,690,934 291,446 324,395 324,395 329,036 30,655 29,200 27,070 29,800 1,153,798 1,158,218 1,167,408 1,182,439 54,573 - - 90,500 1,530,472 1,511,813 1,518,873 1,631,775 446,680 446,680 446,680 446,680 1,977,152 1,958,493 1,965,553 2,078,455 $ 3,358,463 $ 3,508,075 $ 3,506,015 $ 3,612,479 170 Fund: 5200 -Sanitary Sewer Cost Center: 48200 Activitv Description 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. Service Expense Highlights In Budgeted 2015, capital outlay consists of the purchase of a new camera and cable system to be installed in the televising trailer ($85,000) and the joint purchase of a plate compactor ($4,500) with the other enterprise funds. Actual Current Budgeted Performance Measures 2013 2014 2015 Number of connections 7,281 7,324 7,394 Number of lift stations 9 9 9 Miles of sewer main 94 95 96 Number of sewer manholes 2.235 2.275 2.300 Staffing Levels FTE Equivalents Service Expenses Personal Services Supplies & Materials Other Services / Charges Purchased Services Capital Outlay Other Uses TOTAL Department: Sanitary Sewer Director/Manager: Utility Supervisor Actual Current Budgeted Actual Current Budgeted 2013 2014 2015 $ 291,447 $ 324,395 $ 329,036 30,657 27,070 29,800 88,683 93,247 97,652 1,065,115 1,074,161 1,084,787 - - 90,500 446,680 446,680 446,680 $ 1,922,582 $ 1,965,553 $ 2,078,455 Service Expenses By Category Expenses Per Connection Connections Monthly Annual -------------------------- ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 171 .Personal Services ■Supplies 8 Materials oother services / Charges OPurchased Services ■Capital Outlay ■Other Uses Actual Current Budgeted 2013 2014 2015 7,281 7,324 7,394 $ 22.00 $ 22.36 $ 23.43 $ 264.05 ------------------------------ $ 268.37 $ 281.10 City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties 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 $ 309,741 $ 357,631 $ 357,631 $ 209,603 398,961 376,622 378,622 422,100 (65) 2,000 2,000 2,000 456 - - - 399,352 378,622 380,622 424,100 399,352 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties 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 $ 309,741 $ 357,631 $ 357,631 $ 209,603 398,961 376,622 378,622 422,100 (65) 2,000 2,000 2,000 456 - - - 399,352 378,622 380,622 424,100 399,352 378,622 380,622 424,100 709,093 736,253 738,253 633,703 $ 209,603 186,493 208,643 208,643 211,573 12,094 28,200 28,200 28,200 127,723 167,807 291,807 191,785 25,152 - - 4,500 351,462 404,650 528,650 436,058 351,462 404,650 528,650 436,058 $ 357,631 $ 331,603 $ 209,603 $ 197,645 172 Fund: 5300 - Storm Sewer Department: Storm Sewer Cost Center: 48300 Uff Director/Manager: Utility Supervisor Activitv 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. Service Expense Highlights In Current 2014, purchased services consisted of two emergency repairs on culvert failures ($178,245). Additional funding was budgeted in 2015 for any unexpected emergencies. Actual Staffing Levels 2013 FTE Equivalents 2.23 Actual Current Budgeted Performance Measures 2013 2014 2015 Number of Customers 10,583 10,626 10,696 Mileage of storm lines maintained 73 75 76 Maint. of catch basins & manholes 3,639 3,789 3,819 Maint. of sedimentation ponds 478 294 300 Maint. of culverts 291 370 370 Actual Staffing Levels 2013 FTE Equivalents 2.23 Service Expenses By Category Expenses Per Customer Customers Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual InII I V,JVJ $ 2.57 $ 30.83 Current Actual Service Expenses 2013 Personal Services $ 186,493 Supplies & Materials 12,093 Other Services / Charges 43,495 Purchased Services 84,228 Capital Outlay - TOTAL $ 326,309 Service Expenses By Category Expenses Per Customer Customers Monthly Annual ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual InII I V,JVJ $ 2.57 $ 30.83 Current Budgeted 2014 2015 2.32 2.45 Current Budgeted ')nl n IM r ZU0,0'+0 28,200 54,302 237,505 $ 528,650 L I I,0/0 28,200 50,985 140,800 4,500 $ 436,058 ®Personal Services WSupplies & Matenals OCther Services / Charges OPurchased Services Current Budgeted ')nl n IM r I V, VLV IV, VJV $ 4.15 $ 3.40 $ 49.75 $ 40.77 This page left blank intentionally. 174 CITY OF ANDOVER, MINNESOTA 2015 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. 175 This page left blank intentionally. 176 City of Andover Internal Service Funds 2015 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 $ 609,012 $ 677,192 $ 677,192 $ 621,264 1,070,619 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 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 $ 609,012 $ 677,192 $ 677,192 $ 621,264 1,070,619 1,072,053 1,079,948 1,111,844 (1,949) 1,500 1,500 1,500 82,384 - 79,800 - 1,151,054 1,073,553 1,161,248 1,113,344 1,151,054 1,113,344 1,073,553 1,161,248 1,760,066 1,750,745 1,838,440 1,734,608 354,288 381,032 379,032 391,930 355,708 367,831 398,896 386,950 372,878 336,930 439,248 359,872 1,082,874 1,085,793 1,217,176 1,138,752 1,082,874 1,138,752 1,085,793 1,217,176 $ 677,192 $ 664,952 $ 621,264 $ 595,856 177 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: $ 345,201 $ 359,993 $ 359,993 $ 333,060 699,603 699,603 699,603 720,592 (1,372) 500 500 500 1,091 - 4,800 - 699,322 700,103 704,903 721,092 699,322 1,044,523 224,783 335,432 124,315 684,530 684,530 700,103 1,060,096 233,531 342,560 113,080 689,171 689,171 704,903 1,064,896 233,531 369,825 128,480 731,836 731,836 721,092 1,054,152 239,097 360,960 121,022 721,079 721,079 Unrestricted Net Assets, December 31 $ 359,993 $ 370,925 $ 333,060 $ 333,073 178 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 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: $ 345,201 $ 359,993 $ 359,993 $ 333,060 699,603 699,603 699,603 720,592 (1,372) 500 500 500 1,091 - 4,800 - 699,322 700,103 704,903 721,092 699,322 1,044,523 224,783 335,432 124,315 684,530 684,530 700,103 1,060,096 233,531 342,560 113,080 689,171 689,171 704,903 1,064,896 233,531 369,825 128,480 731,836 731,836 721,092 1,054,152 239,097 360,960 121,022 721,079 721,079 Unrestricted Net Assets, December 31 $ 359,993 $ 370,925 $ 333,060 $ 333,073 178 Fund: 6100 Cost Center: Central Equipment Activity Type/Code: Internal Service Fund Expenditure Hiahliahts The primary increase in 2015 is due to the cost of fuel and parts. Department Head: Vehicle Maintenance Supervisor General Activity Description Maintains and repairs all City motorized and non -motorized vehicles and equipment to provide safe operation. Evaluates equipment needs, orders equipment/vehicles and writes specifications. The department maintains nearly 500 pieces of equipment, in addition to normal preventative maintenance procedures of tires, brakes, electrical, fabricating and body work. All work; except automatic transmission overhauls, major engine and major body work are done at the Public Works garage. Staff inspects garbage trucks as part of their licensure process, and performs commercial vehicle inspections required on all applicable City vehicles. Process Used City equipment is scheduled for normal service by miles driven or hours/days of service. Most work is done based on a first -in -first -out with the exception of that emergency repairs are done in the order of importance. Emergency equipment are fire vehicles and snow plow equipment, streets, utilities, and parks. Non -emergency equipment are the Building and Engineering departments, Planning and Zoning department and all other city equipment. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 179 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: $ 263,811 $ 317,199 $ 317,199 $ 288,204 371,016 372,450 Actual Adopted Estimate Adopted Description 2013 2014 2014 2015 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: $ 263,811 $ 317,199 $ 317,199 $ 288,204 371,016 372,450 380,345 391,252 (577) 1,000 1,000 1,000 81,293 - 75,000 - 451,732 373,450 456,345 392,252 451,732 715,543 129,505 20,276 248,563 398,344 398,344 373,450 690,649 147,501 25,271 223,850 396,622 396,622 456,345 773,544 145,501 29,071 310,768 485,340 485,340 392,252 680,456 152,833 25,990 238,850 417,673 417,673 Unrestricted Net Assets, December 31 $ 317,199 $ 294,027 $ 288,204 $ 262,783 180 Fund: 6200 Cost Center: Risk Management Activity Type/Code: Internal Service Fund Expenditure Hiahliahts The primary increase in 2015 is due to the increase in workers comp insurance and general liability insurance. Department Head: Finance Director General Activity Desciption The Risk Management Fund was established to provide funding for compensated absences, safety, training, loss reduction and insurance premium deductibles. Social security and Medicare tax savings resulting from participation in the "cafeteria plan" are recorded in this fund on an annual basis. This fund also functions to mitigate significant rate increases or decreases. Departmental rates are managed by analyzing claims history. Process Used The City Administrator / Finance Director along with the Human Resources Manager promote various safety and wellness programs with the funding received. One of the most notable products is the wellness fitness room. Safety training is provided both in-house and by contracting for service. The city works through a broker and is provided insurance for general liability, automotive and workers' compensation through the League of MN Cities Insurance Trust. ADOPTED 2015 BUDGET CITY OF ANDOVER, MINNESOTA 181 This page left blank intentionally. 182 General Fund Water EF Sewer EF Total General Fund Special Revenue Funds (SRF) Community Center SRF 2012C G.O. Abatement Bonds DSF Debt Service Funds (DSF) 2009A GO State Aid Road Refunding Bonds DSF Road and Bridge CPF 2012C G.O. Abatement Bonds DSF Community Center SRF Total Debt Service Funds Capital Projects Funds (CPF) Water Trunk CPF Water EF Sewer Trunk CPF Sewer EF Road and Bridge CPF 2009A GO State Aid Road Refunding Bonds DSF Total Capital Projects Funds Enterprise Funds (EF) Water EF Water Trunk CPF General Fund Sewer EF General Fund Sewer Trunk CPF Total Enterprise Funds Total All Funds CITY OF ANDOVER Budget Year 2015 Operating Transfers Transfer Transfer In Out $ 150,250 $ 46,680 196,930 General Fund Admin Allocation General Fund Admin Allocation 371,598 Debt Service Allocation - 47,632 Close Debt Service Fund 371,598 - Debt Service Allocation 371,598 47,632 58,249 400,000 - 47,632 - 447,632 58,249 58,249 - - 150,250 58,249 150,250 46,680 400,000 - 446,680 58,249 596,930 $ 1,074,409 $ 1,074,409 183 Debt Service Allocation Replacement Reserve Roadway Degredation Debt Service Allocation General Fund Admin Allocation General Fund Admin Allocation Replacement Reserve CITY OF ANDOVER 2015 - 2019 CIP Development Calendar Date Activity February 25, 2014 2015 - 2019 CIP Council Workshop to determine CIP guidelines. March 4, 2014 Council adopts 2015 Budget Development Guidelines. March 25, 2014 Council discussion of CIP priorities for 2015 — 2019. April 3, 2014 Draft 2015 - 2019 CIP Calendar. April 3 - May 2, 2014 Prepare base CIP Sheets. April 10, 2014 Vehicle Purchasing Committee review of CIP equipment. April 22, 2014 2015 - 2019 Capital Improvement Plan Discussion May 8, 2014 CIP kick-off meeting with Department Heads to discuss CIP sheet content. May 9, 2014 Projected cash flow statements prepared. May 27, 2014 City Council progress update and Council CIP priority discussion. June 2, 2014 All projects updated in CIP program. June 12, 2014 Review projects — new and shifts. July - August, 2014 Commission and Committee review. July 1, 2014 CIP project sheets completed. July 7, 2014 CIP project sheets staff initial review. July 8, 2014 Vehicle Purchasing Committee review of CIP equipment. August 5, 2014 CIP project sheet staff final review. August 11 - 22, 2014 Preparation of final draft of 2015 - 2019 CIP for Council Workshop. August 26, 2014 City Council review of draft 2015 - 2019 CIP. September 23, 2014 Council Workshop — progress report; public comment update. October 21, 2014 City Council holds 2015 - 2019 CIP public hearing. October 21, 2014 City Council adopts 2015 - 2019 CIP. 184 Resnonsibili City Council / Staff City Council / Staff City Council / Staff Finance Finance Vehicle Purchasing Committee City Council / Staff Department Heads Finance City Council / Staff Department Heads Department Heads Admin / Department Heads Department Heads Admin / Department Heads Vehicle Purchasing Committee Admin / Department Heads Finance City Council / Staff City Council / Staff City Council City Council CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 2016 2017 2018 2019 Central Equipment 16-48800-01 Replacement - Service Truck $ - $ 40,000 $ - $ - $ - Replace Unit #371, a 2001 S10 Ext Cab 4x4 truck with 97,900 miles. This truck averages about 7,000 miles a year and by 2016 it will have approximately 110,000 miles. The new truck would be a crew cab and also have a tailgate lift. Communitv Center 15-44000-01 Replacement - Floor Scrubber $ 14,000 $ - $ - $ - $ - Replace floor scrubber used to maintaim the field house floor, concrete hallways and rubber matting. 15-44300-01 Replacement - Rink Flooring $ 50,000 $ - $ - $ - $ - Replacement of all rubber flooring in the ice arena locker rooms and hallways. 16-44000-01 Replacement - Carpeting $ - $ 7,000 $ - $ - $ - Replacement of carpet in the main entrance and field house foyer. 16-44200-01 Replacement - Skate Sharpener/Rental Skates $ - $ 10,000 $ - $ - $ - Replacement of the current skate sharpener and the replacement of the older rental skates. 16-44400-01 Replacement - Safety Pads (wall) $ - $ 6,000 $ - $ - $ - Replacement of the red safety pads that are located on the walls behind each basketball hoop. 17-44000-01 ACC/YMCA Expansion $ - $ - $ 3,000,000 $ - $ - Expansion of the Community Center which may include a youth center, additional meeting rooms, office space, library services space, storage, hockey training and multi- purpose space. The YMCA may look into additional studio space as well as "flex space" and offices. 17-44400-01 Replacement - Volleyball Equipment $ - $ - $ 7,000 $ - $ - Replace current volleyball systems including posts and nets for 3 courts. 18-44300-01 Refacing Rink Boards $ - $ - $ - $ 21,000 $ - Replace the white poly and yellow kick plates on the rink boards along with new netting above the glass on the ends. 18-44300-02 Replacement - Zamboni Battery Pack $ - $ - $ - $ 14,000 $ - Replacement battery pack for the electric zamboni. 19-44400-01 Replacement - Field House Floor $ - $ - $ - $ - $ 40,000 Replace the floor in the field house. 185 CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 201( 7,017 201 R 7,019 En2ineerin2 15-41600-01 New Development Projects $ 140,000 $ 150,000 $ 160,000 $ 160,000 $ 165,000 New developments include the construction of sanitary sewer, water main, storm sewers and streets. Since the majority of the improvement projects are being privately installed by the developer, the following expenditures are the city's share for trunk water and sewer improvements. 15-41600-02 Pedestrian Trail Maintenance $ 70,000 $ 72,000 $ 75,000 $ 175,000 $ 80,000 This project provides maintenance such as patching, crack filling and restoration for the city's pedestrian trail system. 16-41600-01 New Pedestrian Trail and Sidewalk Segments $ - $ 383,000 $ 118,000 $ 460,000 $ 525,000 The City of Andover has an extensive trail and sidewalk system for pedestrians and bikers. Future planned trail and sidewalk connections provide key links within the existing system. The following segments are proposed to be constructed as funds become available: 2016 - 8' bituminous trail along Andover Blvd from Bluebird St to Vale St ($144,000), 2016 - 5' concrete sidewalk along Bunker Lake Blvd from Yukon St to Hidden Creek North Park ($52,000), 2016 - 5' concrete sidewalk along Bunker Lake Blvd from Crosstown Blvd to Yukon St ($187,000), 2017 - 8' bituminous trail along Crosstown Blvd from Coon Creek Bridge to South Coon Creek Drive ($118,000), 2018 - 8' bituminous trail and boardwalk along Crosstown Blvd from Bunker Lake Blvd to 140th Ave ($460,000), 2019 - 8' bituminous trail along Crosstown Blvd from 159th Ave to Prairie Road ($280,000), and 2019 - 10' bituminous trail from Kensington Estates 7th Addition to Andover Station North ($245,000 - Grant). Facilitv Manaeement 15-41900-01 Annual Parking Lot Maintenance $ 28,000 $ 130,000 $ 30,000 $ 30,000 $ 30,000 Yearly maintenance of the City parking lots is necessary to extend their useful lives. Parking lots that need maintaining include those at the City Hall complex, Public Works, Community Center, City parks, and the Fire Stations. Yearly maintenance may include crack sealing, seal coating, and mill and overlays. Maintenance will generally be completed with the street zones, or on an as needed basis. In 2016, the Community Center will be evaluated for resurfacing. 15-41900-02 Carpet / Tile Replacement $ 10,000 $ - $ 10,000 $ - $ 10,000 The replacement of carpet and tile in appropriate areas of all City buildings where deemed necessary. An annual review of all areas will be done to determine the order of replacement. 15-41900-03 Building A - Seal Floor $ 20,000 $ - $ - $ - $ 25,000 Apply a sealant to the cement floor in Building A (large garage). 15-41900-04 Public Works/Community Center Master Planning $ 25,000 $ 25,000 $ - $ - $ - Hire an consultant to prepare a Master Plan for future Public Works and Community Center expansion. 16-41900-01 Memorial - Veterans Memorial $ - $ 10,000 $ - $ - $ - A memorial to honor Andover veterans. 186 CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 2016 2017 2018 2019 17-41900-01 Roof Replacement - Public Works $ - $ - $ 400,000 $ - $ - Remove and replace the existing membrane on the Public Works building. 18-41900-01 Fire St. #2 Addition with additional land purchase $ - $ - $ - $ 835,000 $ The addition of one bay to the apparatus area and expanding the existing parking lot to allow for more room and parking space. The additional land would be used to expand the station #2 site to include a training facility that will allow for the appropriate outdoor fire and rescue training, including all types of required live fire scenarios. 19-41900-01 Addition to Storage Building & Vehicle Maint. Shop $ - $ - $ - $ - $ 3,200,000 An addition to the north end of Bldg A and be the same in size, 100' x 250' with a 75' x 140' addition to the northwest side of the new vehicle storage garage for the vehicle maintenance shop. This building will be built with cement panels to match the present vehicle garage and would screen Public Works operations from the Community Center/YMCA as proposed in a joint meeting with the Mayor and City Council. 19-41900-02 Attached Storage Building $ - $ - $ - $ - $ 320,000 Three sided building approximately 25'x 50'. It would be used to store equipment not sensitive to the changing temperatures and weather conditions but out of direct sunlight. It would also help to screen the facility. 19-41900-03 Relocate Fuel Station w/ Canopy $ - $ - $ - $ - $ 320,000 Relocate the fueling station and install two (2) new 10,000 gallon fuel tanks and possibility keep the 2,000 gallon diesel fuel tank for an alternative fuel like E85. Also, install a canopy to cover the fuel pumps and Gasboy fuel monitoring equipment. 19-41900-04 Pedestrian Tunnel Under Crosstown Blvd. $ - $ - $ - $ - $ 450,000 This would be a pedestrian underpass walkway under Crosstown to accommodate pedestrian traffic from a possible development of a parking lot or other sports fields on the north side of Crosstown Boulevard that could crossunder Crosstown Boulevard to Sunshine Park Facilities or just connect to the city's trail system. Fire 15-42200-01 Replacement - Turnout Gear $ 18,000 $ 19,000 $ 20,000 $ 20,000 $ 20,000 Replace worn turnout gear. The turnout gear consists of a coat and bunker pants with suspenders. Other personal protective gear includes helmets, boots, nomex hood, goggles and appropriate protective gloves. 16-42200-01 Replacement - SCBA's $ - $ 250,000 $ - $ - $ The Fire Department is in need of replacing the self contained breathing air (S.C.B.A.) packs on a regular basis. The scba bottles do have a shelf life and need to be replaced at the end of that period. The Fire Department currently has 70 breathing air bottles and 35 complete breathing air back packs. 16-42200-02 Replacement - Fire Marshall Vehicle $ - Replace Unit #4801, a 1997 S10 Blazer with over 68,478 miles and used by the Fire Marshall. 187 $ 40,000 $ CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 1)016 7,017 201 R 2019 16-42200-03 Replacement - 800 MHz Radios $ - $ 35,000 $ 35,000 $ 35,000 $ 35,000 The current 800 MHz handheld and mobile radios, used by the Fire Department and Public Works, will no longer be manufactured after 2014. In addition, the service support for maintenance and repair for the same radios will not be available after 2019. The Fire Department currently has 37 hand held radios and has a need to increase to 40. The Fire Department also has 16 mobile radios mounted in vehicles or used as a base station at all three fire stations. The Public Works Department has 6 hand held radios that can be used to contact agencies on the 800 MHz frequency. 17-42200-01 Replacement - Breathing Air Compressor FS #1 $ - $ - $ 150,000 $ - $ The breathing air compressor located at fire station #1 is used to fill self-contained breathing air bottles used by fire fighters for all types of fire and EMS incidents. The current breathing air compressor is a permanent unit installed at the station. The system at station #1 also includes a fill station and cascade system that allows for faster filling time of multiple breathing air bottles. There is a need to fill as many bottles as fast as possible during a large fire event. 17-42200-02 Replacement - Grass #31 $ - $ - $ 45,000 $ - $ - Replace Unit #4893, a 1991 Ford 4x4 grass vehicle with 22,892 miles. This also has been used as medical response truck for station #3. Now that the fire department has a separate vehicle that will be used to respond to medical calls, the new grass trucks will be designed to function for one primary purpose and will allow for new wildfire technologies to be put on the truck. 17-42200-03 Replacement - Grass #21 $ - $ - $ 45,000 $ - $ - Replace Unit #4892, a 1991 Ford 4x4 grass vehicle with 21,962 miles This has also been used as a medical response unit for Station #2. Now that the fire department has a separate vehicle that will be used to respond to medical calls, the new grass trucks will be designed to ftinction for one primary purpose and will allow for new wildfire technologies to be put on the truck. 19-42200-01 Replacement - Tanker #11 $ - $ - $ - $ - $ 340,000 Replace Unit #4889, a 1991 International tanker with 9,545 miles. Information Technoloev 15-41420-01 Microsoft DataCenter & CAL's License $ 15,000 $ - $ - $ - $ - Upgrade our existing server licenses to Microsoft DataCenter to blanker cover all our server needs. Also verify and purchase all workstation licensed CAL's. 15-41420-02 Microsoft Office Upgrade $ 15,000 Upgrade all computers to latest version of Microsoft Office (currently office 2013). 16-41420-01 Add/Replace Server $ - Add to or replace current VMWare server farm. 188 $ 20,000 $ - $ - $ - CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 2016 2017 2018 2019 Park & Rec - Operations 15-45000-01 Replace/Repair Play Structures - Various Parks $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Repair to fall zones and achieve ADA accessibility. Replacement of playground equipment and other major replacements, such as short fences on ball fields, soccer goals, and any area of play that does not meet safety specifications. The proposed rebuilds are as follows: 2015 - Hidden East Park & Timber Rivers Park, 2016 - Pine Hills Park & Purple Park, 2017 - Shadowbrook East, and 2018 - Chesterton Commons. 15-45000-02 Replace/Repair Major Park Projects - Various Parks $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Future projects: fence rebuilds at various parks, pedestrian bridge deck replacement, and parking lot reconstruction. 16-45000-01 Replacement - Toro Groundsmaster #559 $ - $ 45,000 $ - $ - $ - Replace Unit #559, a 1999 Toro Groundsmaster 325 with 2,209 hours. 17-45000-01 Replacement - One Ton Crew Cab Pickup #502 $ - $ - $ 50,000 $ - $ - Replace Unit #502, a 2002 F350 crew cab pickup with 70,505 miles on it. 17-45000-02 Replacement - Toro Groundsmaster #585 $ - $ - $ 120,000 $ - $ - Replace Unit #585, a 2001 Toro Groundsmaster 580-D with 1,780 hours. 19-45000-01 Replacement - Water Tanker #161 $ - $ - $ - $ - $ 150,000 Replace unit #161, a 2002 water tanker truck with 50,700 miles. It is used to water turf, shrubs and trees in the parks during the summer, flushing the medians in the spring, and flooding rinks in the winter. 19-45000-02 Replacement - Trackless Trail Machine #525 $ - $ - $ - $ - $ 150,000 Replace unit #525, a 2004 Trackless MT5 trail machine with 1,135 hours. Park & Rec - Proiects 15-45001-01 Annual Miscellaneous Park Projects $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 This is for unforeseen or requested miscellaneous projects that may arise during the year, requested by the public, staff, City Council or the Park and Recreation Commission each year. 15-45001-02 Irrigation Projects - Small Parks $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 Irrigate a small park which has playground equipment or other amenities. 15-45001-03 Pine Hills North - Phase I $ 60,000 $ 400,000 $ 100,000 $ 115,000 $ 450,000 Construct Phase II of the new sporting complex that will include a playground and bathrool enclosures (2015 - $60k), parking lots (2016 - $400k), a storage building (2017 - $100k), well and septic system (2018 - $115k) and constructing a multi-purpose building (2019 - $450k). The land was purchased in 2012. The fields were graded, irrigated and seeded in 2013. Other potential Phase II improvements would include trails, a boardwalk and pedestrian bridges, nature trails, gazebo, and a few other amenities. CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 201( 7,017 201 R 7,019 15-45001-04 Kelsey Round Lake Park Master Plan $ 50,000 $ - $ - $ - $ - Since there are future opportunities for the park such as trail development, prairie restoration, interpretive center/restrooms/plaza, and additional landscaping; it has been recommended to hire an independent consultant to help determine what future improvements should be planned. 15-45001-05 Fencing Upgrades - Ballfield Safety Initiatives $ 25,000 $ - $ - $ To install sideline fencing along the 1 st and 3rd baselines at 3 parks (Hills of Bunker Lake West, Andover Lions and Terrace). 15-45001-06 Crooked Lake School Hockey Rink $ 60,000 $- Reconstruct the hockey rink and relocate the free skating from south side of warming house to the north side. 19-45001-01 Langseth Park Trail Improvement $ 20,000 - Construct a binuminus trail from 175th Lane to Langseth Park. 18-45001-01 City Campus Rinks - Pave Hockey Rink & Parking Lot $ - $ - $ - $ 150,000 $ To provide a hard surface for both existing hockey rinks which will allow residents to play roller blade hockey during the non -winter months. Also, pave the existing parking lot with concrete curb and gutters. 19-45001-02 Fox Meadows Park - Renovation $ - $ - $ - $ - $ 200,000 Reconstruct the existing park to include one full sized soccer/lacrosse/football field along with the possibility of constructing one smaller practice field adjacent to the full size field. The fields are proposed to be irrigated. Sanitary Sewer 15-48200-01 Televising Camera Upgrade $ 86,000 $ - $ - $ - $ - A new camera and cable system to be mounted in the televising trailer. This new camera will give a better look at the sanitary and storm sewer systems with the new visual system. The images are digital, and with built in sensors, you can easily see problems that currently exist or if the build up of material is starting to create a backup situation. The camera and cabling units are much lighter that the existing unit making it easier to few further into the system, whether it's traveling with or against the flow. 16-48200-01 Sanitary Sewer Extensions $ - $ 500,000 $ 105,000 $ - $ - Sanitary sewer extensions are necessary in areas within the MUSA boundary for future development. The following projects are proposed: 2016 - Extend sanitary sewer trunk along Crosstown Blvd from just west of the railroad tracks east to Prairie Road ($500,000) and 2017 - Upgrades to Aztec Estates lift station ($105,000). 17-48200-01 Yellow Pine Lift Station $ - $ - $ 650,000 $ - $ - Install a lift station at Yellow Pine Street to divert flow from the Bluebird Street trunk line to the Pinewood trunk line. The wet well for this lift station was constructed in 2005 as apart of the Crosstown Boulevard Improvements Project. 190 CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 201( 7,017 201 R 7,019 17-48200-02 Replacement - Jet/Vac Truck #99 $ - $ - $ 460,000 $ - $ - Replace Unit #99, a 1999 Vactor jet/vac truck with 23,176 miles. The new vehicle will be able to carry up to 2000 gallons and 600 feet of jetting hose. Storm Sewer 15-48300-01 Storm Sewer Improvements $ 50,000 $ 50,000 $ 55,000 $ 60,000 $ 60,000 Each year, areas of the City are identified where improvements are required to maintain our storm sewer system. Maintenance items include replacement of failing culverts, catch basins, and storm sewer pipes, erosion issues at storm sewer outfalls, and dredging of ponds and ditches. 15-48300-02 New - Plate Compactor $ 13,500 $ - $ - $ - $ - A plate compactor is used to create a certain level of compaction prior to a finish road surface. It can also be used for other types of projects where compaction is required. 18-48300-01 Replacement - Tymco Street Sweeper #172 $ - $ - $ - $ 210,000 $ - Replace Unit #172, a 2003 Tymco sweeper with approximately 24,255 miles. 19-48300-01 Replacement - Elgin Street Sweeper #169 $ - $ Replace Unit #169, a 2000 Elgin sweeper with approximately 4,232 hours. $ $ 200,000 Streets / Hiehways 15-43100-01 Annual Street Seal Coat Project $ 496,000 $ 618,000 $ 635,000 $ 763,000 $ 693,000 This project provides for a seal coat of the streets. Each year one of the 8 full zones in the City is seal coated. This plan has the following areas tentatively planned for sealcoating as follows: 2015 - West 1/2 of Zone 1, 2016 - Full Zone 2, 2017 - Full Zone 3, 2018 - Full Zone 4 and 2019 - Full Zone 5. 15-43100-02 Annual Street Crack Seal Project $ 285,000 $ 232,000 $ 282,000 $ 270,000 $ 290,000 This project provides for a crack sealing of the streets. Each year one of the 8 full zones in the City is seal coated. This plan has the following areas tentatively planned for crack sealing as follows: 2015 - Zone 2, 2016 - Full Zone 3, 2017 - Full Zone 4, 2018 - Full Zone 5 and 2019 - Full Zone 6. 15-43100-03 Annual Pavement Markings $ 33,000 $ 35,000 $ 37,000 $ 40,000 $ 44,000 The pavement striping for City streets is conducted one time per year. This includes centerline striping and shoulder striping. Striping enhances the safety of the roadway by directing traffic to the correct lane movement.The Federal Highway Administration is currently reviewing reflective standards for pavement markings. In the near future the City may have to stripe twice per year to meet new standards. If this is approved, it will double the cost of pavement markings per year. 15-43100-04 Annual Curb Replacement $ 45,000 $ 46,000 $ 48,000 $ 50,000 $ 52,000 Damaged and failing concrete curb and gutter throughout the City needs to be repaired or replaced to help maintain the integrity of the roadway system. Replacing damaged or failing sections of curb and gutter helps with drainage of the roadway and prolongs the life of the street system. 191 CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 201( 7,017 2018 2019 15-43100-05 Municipal State Aid Routes / New & Reconstruct $ 1,259,000 $ 320,000 $ 610,000 $ - $ 683,000 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards. Projects include: 2015 - Meadows of Round Lake (145th/Eldorado/Yuca/143rd) $659,000 and Bunker Lake Blvd (Crane St to the eastern city limits) $600,000; 2016 - 173rd Lane (Tulip St to Round Lake Blvd) $320,000; 2017 - University Ave Overlay (157th to 161st) $122,000* and 168th Lane (Crocust to Verdin) $488,000; and 2019 - University Ave Recon (Andover Blvd to 157th) $683,000*. *This is Andover's portion of the project costs, the City of Ham Lake would fund the remaining 50%. 15-43100-06 Street Overlays $ 600,000 $ - $ - $ - $ The City of Andover is implementing a street overlay program to prolong the life of the City's roadway infrastructure. This program will include an overlay of approximately 1.5" of bituminous on roadways that are identified as still structurally sound. The Engineering Department and Public Works will identify roads that meet this criteria. 16-43100-01 Annual Street Reconstruction $ - $ 662,000 $ 1,204,000 $ 636,000 $ 996,000 The Street Reconstruction projects will consist of milling the existing street surface and constructing a new asphalt surface. Minor shouldering and restoration work will be included with the project. In developments that have existing bituminous curb or no curb or ditch, concrete curb and gutter will be constructed. 25% of the total project costs are assessed to the benefiting properties in each development. This program helps to maintain the integrity and value of the community's street infrastructure. Areas to be reconstructed are listed below. The timing of reconstruction of developments more than two years out may be revised as street conditions and ratings are reviewed on an annual basis. Additional developments may be added to the schedule or projects moved up if it is advantageous to reconstruct them in conjunction with other nearby projects. The current listing of projects are: 2015 - Overlay Project - No Reconstruction Scheduled, 2016 - Prairie Meadows, Sylvester Addition (gravel road - 50% assessed if approved), 2017 - Lund's Evergreen Estates 2nd - 5th Additions, 2018 - Andover Bdy Commission Plat 1 / Shirley's Estates, and 2019 - Alladin Acres and Enchanted Drive area. 16-43100-02 Intersection Upgrades $ - $ 675,000 $ - $ 285,000 $ The following are projects that are tentatively identified for improvements and the exact timing is subject to change: 2016 - Nightingale St and Crosstown Blvd intersection. Necessary improvements will be determined once the improvements at Andover Blvd and Crosstown Blvd are analyzed in relation to traffic volumes and queue lengths at this intersection ($400,000). 2016 - Crosstown Blvd and Crosstown Dr intersection. Improvements could include separating the southbound right turning movement onto Crosstown Dr to improve safety ($275,000). 2018 - Construction of a traffic signal at South Coon Creek Drive and Round Lake Blvd ($285,000) if warrants are met. 16-43100-03 Replacement - One Ton Truck w/ Plow #132 $ - $ 75,000 $ Replace unit #132, a 2002 Ford F-450 dump truck with a 9' snow plow with 101,589 miles on it. 17-43100-01 Replacement - Dump Truck w/ Snow Removal #196 $ - $ - $ 210,000 Replace unit #196, a 1996 dump truck with front mounted snow removal equipment with 54,428 miles on it. 17-43100-02 Replacement - One Ton Truck w/ Plow #134 $ Replace unit #134, a 2004 Ford F-450 dump truck with a 9' snow plow with 77,560 miles on it. 19-43100-01 Replacement - Dump Truck w/ Snow Removal #200 $ Replace unit #200, a 2000 dump truck with snow removal equipment with 60,000 miles bWit. 75,000 $ - $ 220,000 CITY OF ANDOVER 2015 - 2019 CAPITAL IMPROVEMENT PLAN 2015 2016 2017 2018 2019 19-43100-02 Replacement - Dump Truck w/ Snow Removal #201 $ - $ - $ - $ - $ 220,000 Replace unit #201, a 2000 dump truck with snow removal equipment with 39,263 miles on it. 19-43100-03 Replacement - Bobcat S185 #120 $ - $ - $ - $ - $ 50,000 Replace unit #120, a 2004 Bobcat S185 high-flow hydraulics with 1,134 hours. 19-43100-04 Replacement - One Ton Truck w/ Plow #133 $ - $ - $ - $ - $ 75,000 Replace unit #133, a 2004 Ford F-450 dump truck with a 9' snow plow with 44,194 miles on it. Water 15-48100-01 Rehabilitation of Wells $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 The motor, pump and column pipe are taken out for inspection and worn parts are replaced. The well is televised to determine the depth and condition. If the well is at or close to the original drill depth everything is put back in place. The well may need to be cleaned out to the original depth if there is a substantial decrease in the depth. 18-48100-01 Water Meter Reading System AMUAMR $ - $ - $ - $ 900,000 $ - A meter reading system that will read all water meters by either a Fixed Base Reading System or a Drive By Radio Read System. The Fixed Base System is a system that is stationary with the means of reading all water meters from one or multiple points throughout the system. The Drive By System is a system where an employee drives through the water service area and gathers all the meter readings by way of a vehicle mounted computer and receiver. 193 Description Governmental Activities General Obligation Bonds 2004 EDA Public Facility Lease Rev (a) Subtotal - General Obligation Bonds General Obligation Abatement Bonds 2012C G.O. Abatement Bonds Certificates of Indebtedness/Capital Notes 2011A G.O. Equipment Certificates 2012A G.O. Equipment Certificates 2014A G.O. Equipment Certificates Subtotal - Certificates of Indebtedness Capital Improvement Bonds 2012B G.O. Cap Improvement Ref Bonds Subtotal - Capital Improvement Bonds Permanent Improvement Revolving Bonds 2010A G.O. PIR Refunding Bonds State Aid Bonds: 2009A G.O. State Aid Street Refunding Bonds Referendum Bonds: 2010A G.O. Open Space Referendum Bonds Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 2009A G.O. Water Revenue Bonds Subtotal - General Obligation Bonds Date of Rate of Issue Maturity Interest CITY OF ANDOVER Summary of Outstanding Bond Issues 2014-2015 Outstanding at Issued 12/31/2013 2014 Retired Issued Outstanding at 12/31/2014 Outstanding 2015 at Retired Issued 12/31/2015 4/23/2004 2/1/2014 2.125-5.400% 19,580,000 16,925,000 (16,925,000) 3/26/2009 2/1/2024 2.00-4.25% 1,025,000 790,000 (60,000) 730,000 (65,000) 665,000 TOTALS 16,925,000 (16,925,000) $ 6,310,000 $ (590,000) $ - TOTALS $ 45,010,000 $ (19,160,000) $ 1,555,000 12/27/2012 2/1/2031 1.00-3.00% 17,315,000 16,995,000 (320,000) 16,675,000 (835,000) 15,840,000 3/1/2011 2/1/2014 2.00% 265,000 95,000 (95,000) - - 3/22/2012 2/1/2017 2.00% 585,000 585,000 - 585,000 585,000 5/29/2014 2/1/2020 1.50-2.00% 1,555,000 1,555,000 1,555,000 (225,000) 1,330,000 680,000 (95,000) 1,555,000 2,140,000 (225,000) 1,915,000 3/22/2012 2/1/2016 2.00% 1,570,000 1,470,000 (500,000) - 970,000 (500,000) 470,000 1,470,000 (500,000) 970,000 (500,000) 470,000 2/18/2010 2/1/2014 2.00% 1,480,000 385,000 (385,000) - - 3/26/2009 2/1/2015 2.25-2.80% 955,000 290,000 (230,000) 60,000 (60,000) - 2/18/2010 2/1/2022 2.00-3.125% 1,660,000 1,390,000 (140,000) 1,250,000 (145,000) 1,105,000 TOTALS $ 38,135,000 $ (18,595,000) $ 1,555,000 $ 21,095,000 $ (1,765,000) $ $ 19,330,000 3/13/2007 2/1/2023 4.00-4.25% 6,570,000 6,085,000 (505,000) 5,580,000 (525,000) 5,055,000 3/26/2009 2/1/2024 2.00-4.25% 1,025,000 790,000 (60,000) 730,000 (65,000) 665,000 TOTALS $ 6,875,000 $ (565,000) $ $ 6,310,000 $ (590,000) $ $ 5,720,000 TOTALS $ 45,010,000 $ (19,160,000) $ 1,555,000 $ 27,405,000 $ (2,355,000) $ $ 25,050,000 Notes: (a) Debt service costs on this bond issue are the responsibility of the EDA. 194 CITY OF ANDOVER Debt Service Summary 195 Total Less 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2031 Payments Interest Total Governmental Activities General Obligation Abatement Bonds 2012C G.O. Abatement Bonds 1,214,906.26 1,216,506.26 1,213,731.26 1,211,481.26 1,208,931.26 6,064,825.05 6,040,703.16 2,431,400.00 20,602,484.51 (3,927,484.51) 16,675,000.00 Certificates of Indebtedness 2011A G.O. Equipment Certificate - - - - - 2012AG.O.Equipment Certificates 11,700.00 61,200.00 540,350.00 - - - 613,250.00 (28,250.00) 585,000.00 2014A G.O. Equipment Certificates 256,925.97 283,350.00 278,800.00 278,550.00 278,200.00 277,750.00 1,653,575.97 (98,575.97) 1,555,000.00 268,625.97 344,550.00 819,150.00 278,550.00 278,200.00 277,750.00 2,266,825.97 (126,825.97) 2,140,000.00 Capital Improvement Bonds 2012B G.O. Cap Improvement Ref Bonds 514,400.00 474,700.00 - - - 989,100.00 (19,100.00) 970,000.00 State Aid Bonds 2009A State Aid Street Refunding Bonds 60,840.00 - 60,840.00 (840.00) 60,000.00 Referendum Bonds 2010A G.O. Open Space Referendum Bonds 176,915.00 173,942.50 175,657.50 176,841.25 177,507.50 518,353.75 1,399,217.50 (149,217.50) 1,250,000.00 2,235,687.23 2,209,698.76 2,208,538.76 1,666,872.51 1,664,638.76 6,860,928.80 6,040,703.16 2,431,400.00 25,318,467.98 (4,223,467.98) 21,095,000.00 Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 741,046.26 744,546.26 742,146.26 743,846.26 739,646.26 2,958,213.15 6,669,444.45 (1,089,444.45) 5,580,000.00 2009A G.O. Water Revenue Bonds 90,440.00 88,555.00 86,605.00 89,492.50 87,130.00 436,642.50 878,865.00 (148,865.00) 730,000.00 831,486.26 833,101.26 828,751.26 833,338.76 826,776.26 3,394,855.65 7,548,309.45 (1,238,309.45) 6,310,000.00 3,067,173.49 3,042,800.02 3,037,290.02 2,500,211.27 2,491,415.02 10,255,784.45 6,040,703.16 2,431,400.00 32,866,777.43 (5,461,777.43) 27,405,000.00 195 CITY OF ANDOVER Computation of Legal Debt Margin December 31, 2014 (Unaudited) Estimated Taxable Market Value (Note A) Debt Limit: 3% of Market Value Total Bonded Debt Less: Non -Tax Levy Supported Debt: (Note B) State Aid Bonds G.O. Revenue Bonds Total Non -Tax Levy Supported Debt Total Debt Applicable Less: Balance Available in Related Debt Service Funds Net Debt Applicable Legal Debt Margin Note A: Source: Anoka County Property Tax Division $ 2,071,581,281 62,147,438 $ 27,405,000 $ 60,000 6,310,000 6,370,000 21,035,000 1,082,423 19,952,577 $ 42,194,861 Note B: The computation on legal debt margin only includes debt supported by a tax levy. 196 CITY OF ANDOVER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Collected Within the Fiscal Year of Levy Total Delinquent Total Market Value Collections In Total Collections to Date Tax Tax Homestead Total Percentage Subsequent Total Percentage Year Levy* Levy Credit Collected of Levy Years Amount of Levy 2005 $ 7,556,813 $ 6,973,307 $ 13,179 * $ 6,986,486 92.45% $ 88,365 $ 7,074,851 93.62% 2006 8,550,919 7,977,279 1,700 * 7,978,979 93.31% 108,138 8,087,116 94.58% 2007 9,316,427 8,738,606 410,519 9,149,125 98.20% 150,039 9,299,164 99.81% 2008 10,153,718 9,554,131 198,214 * 9,752,345 96.05% 179,852 9,932,197 97.82% 2009 10,593,520 9,992,240 54,629 * 10,046,869 94.84% 143,527 10,190,396 96.19% 2010 10,856,299 10,125,752 3,905 * 10,129,657 93.31% 157,591 10,287,248 94.76% 2011 10,856,299 10,119,681 853 * 10,120,534 93.22% 110,010 10,230,545 94.24% 2012 10,631,299 10,460,838 2,354 10,463,192 98.42% 83,872 10,547,064 99.21% 2013 10,631,299 10,535,521 1,246 10,536,767 99.11% 5,112 Not Available 100.16% * Included in the total tax levy is approximately $400,000 of market value homestead credit (MVHC) that the City will not be receiving. Due to State legislative actions to deal with the State budget deficit, the MVHC program was significantly reduced for the City. 2013 338,411 387,584 CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Note: (1) Only includes assessments certified to Anoka County. 197 Total Delinquent Collections Taxes Current Current Percent of Delinquent Total as a Percent of Outstanding as a Percent of Assessments Assessments Assessments Assessment Assessment Current Delinquent Current Year Due (1) Collected Collected Collections Collections Assessments Due Assessments Assessments Due 2004 $ 192,373 $ 189,279 98.39% $ 7,921 $ 197,200 102.51% $ 15,157 7.88% 2005 178,434 175,471 98.34% 4,002 179,473 100.58% 22,217 12.45% 2006 225,365 192,477 85.41% 4,790 197,267 87.53% 51,721 22.95% 2007 163,817 142,750 87.14% 12,460 155,210 94.75% 76,420 46.65% 2008 366,203 330,304 90.20% 1,479 331,783 90.60% 174,810 47.74% 2009 319,448 332,739 104.16% 36,693 369,432 115.65% 202,999 63.55% 2010 325,361 314,097 96.54% 61,247 375,344 115.36% 218,860 67.27% 2011 308,794 304,164 98.50% 5,112 309,276 100.16% 267,016 86.47% 2012 348,129 376,601 108.18% 25,087 401,688 115.38% 237,175 68.13% 2013 338,411 387,584 114.53% 168,941 556,525 164.45% 82,826 24.47% Note: (1) Only includes assessments certified to Anoka County. 197 CITY OF ANDOVER, MINNESOTA PRINCIPAL TAXPAYERS Current Year and Nine Years Ago (Unaudited) Total S 1,321,509 5.86% S 933,616 5.20% Net Tax Capacity S 22,569,018 S 17,951,904 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) 2013 2004 Net Percentage of Net Residential Percentage of Industrial (1) Tax Total Total City Tax Permits Total City Taxpayers Capacity Rank Tax Capacity Capacity Rank Tax Capacity Minnegasco, Inc. $ 211,244 1 0.94% S 108,114 5 0.60% Great River Energy 194,038 2 0.86% 2,433,776,200 2,625,708,000 - Connexus Energy 193,140 3 0.86% 187,734 1 1.05% Target Corporation 160,048 4 0.71% 2008 233,801,700 - Presbyterian Homes of Andover 140,847 5 0.62% 150,544 2 0.84% Andover Limited Partnership 117,528 6 0.52% 145,276 3 0.81% Andover Station LLC 97,182 7 0.43% 1,247,106 71 - DST Properties LLC 81,678 8 0.36% 24 11,461,453 58 Fairbanks Properties, LLC 65,926 9 0.29% 2,398,307,900 25 - Columbia Park Properties 59,878 10 0.27% 52,064 7 0.29% 116 LLC 98 20,351,892 - 114,304 4 0.64% United Power Association 68,054 6 0.38% Individual - Commercial/Industrial 49,584 8 0.28% Xcel Energy 29,086 9 0.16% Health Partners 28,856 10 0.16% Total S 1,321,509 5.86% S 933,616 5.20% Net Tax Capacity S 22,569,018 S 17,951,904 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) Note: (1) also includes agricultural, public utility, railroad operating property, and personal property 198 Estimated Market Values New Construction Commercial / Commercial / Industrial Residential Year Industrial (1) Residential Total Permits Value Permits Value 2004 S 144,629,100 S 1,936,079,400 S 2,080,708,500 16 S 19,926,817 251 S 36,224,546 2005 168,684,200 2,174,640,000 2,343,324,200 20 6,571,671 226 34,309,393 2006 191,931,800 2,433,776,200 2,625,708,000 8 1,791,896 153 25,236,120 2007 211,760,900 2,663,389,900 2,875,150,800 9 2,403,831 91 18,347,873 2008 233,801,700 2,813,037,200 3,046,838,900 11 16,878,603 49 11,116,400 2009 248,129,500 2,807,144,500 3,055,274,000 11 767,430 47 9,246,347 2010 229,977,800 2,526,288,900 2,756,266,700 11 1,247,106 71 14,700,800 2011 199,728,200 2,305,897,900 2,505,626,100 24 11,461,453 58 11,803,000 2012 192,112,500 2,206,195,400 2,398,307,900 25 5,042,964 81 15,243,007 2013 174,971,400 2,141,898,900 2,316,870,300 15 9,249,466 98 20,351,892 Note: (1) also includes agricultural, public utility, railroad operating property, and personal property 198 CITY OF ANDOVER, MINNESOTA DEMOGRAPHICS (Unaudited) Populaton by Age (2010 U.S. Census): 4 and under 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 85 and over Total population Total female population Total male population 2010 median age Income Statistics: 2011 per capita income 2011 median household income 2011 median family income 2012 median gross rent 2012 median value owner occupied housing (1) Source: Metropolitan Council M Persons Percent Percent U.S. Census 2,620 of Change 2000 2010 2020 Est (1) 2000-2010 Population 26,588 30,598 33,400 15.08% Households 8,205 10,091 11,000 22.99% Household Size (Population/Household) 3.24 3.03 3.04 -6.43% POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) 4.1% 1,393 Populaton by Age (2010 U.S. Census): 4 and under 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 85 and over Total population Total female population Total male population 2010 median age Income Statistics: 2011 per capita income 2011 median household income 2011 median family income 2012 median gross rent 2012 median value owner occupied housing (1) Source: Metropolitan Council M Persons Percent 1,737 9.2% 2,620 10.6% 3,032 10.4% 2,807 7.6% 1,410 3.7% 2,887 14.5% 4,922 22.0% 5,932 13.1% 1,803 4.1% 1,393 2.0% 1,409 1.7% 454 0.8% 192 0.3% 30,598 100.0% 15,074 15,524 31.9 yrs City of Anoka State of Andover County Minnesota $ 32,615 $ 29,894 $ 30,656 89,803 69,139 59,126 94,159 79,587 74,032 1,165 937 802 242,300 203,700 194,300 CITY OF ANDOVER, MINNESOTA MISCELLANEOUS STATISTICAL DATA (Unaudited) Date incorporated Form of government Miles of streets City County Storm sewer (miles) Watermain (miles) Sanitary sewer (miles) Parks: Number Developed acreage Trails (miles) Acreage: Developed Undeveloped Largest Employers in the City Firm ISD No 11 Anoka -Hennepin Fairview Andover Clinic Anoka County Sheriff s Office Kottkes' Bus Service Walmart YMCA Target Anoka County Highway Department Bunker Hills Regional Park / Activities Center Andover County Market Tvne of Business / Product Elementary and secondary education Healthcare County government and services Transportation Retail Youth organization and fitness center Retail County government and services Regional park and recreation Grocery store 200 1974 Plan A 201 43 75 115 95 68 595 37 9,486 13,010 Number of Employees 760 300 250 225 210 186 170 103 100 85 GLOSSARY OF TERMS ACCOUNTING SYSTEM: The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned (whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). ACTIVITY: A cost center for recording charges for services delivered or functions performed. Each activity has an assigned manager who is responsible for planning and conducting the various approved objectives or workloads. AMORTIZATION: (1) The portion of the cost of a limited -life or tangible asset charged as an expense during a particular period. (2) The reduction of a debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION: An authorization made by the legislative body of a government that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ASSESSED VALUATION: A valuation set upon real estate or other property by a government as a basis for levying taxes. ASSESSMENT: (1) The process of making the official valuation of property for taxation. (2) The valuation placed upon property as a result of this process. ASSETS: Property owned by a government that has a monetary value. BALANCED BUDGET: When revenues and other financing sources equal expenditures/expenses and other financing uses. BOND: A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. 201 BUDGET DOCUMENT: The official written statement prepared by the budget office and supporting staff that presents the proposed budget to the legislative body. BUDGET MESSAGE: A general discussion of the proposed budget presented in writing as a part of or supplement to the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the chief executive and budget officer. CAPITAL ASSETS: Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. CAPITAL IMPROVEMENTS BUDGET: A plan of proposed capital expenditures and the means of financing them. The capital budget is usually enacted as part of the complete annual budget, which includes capital outlays. The capital budget normally is based on a capital improvement plan (CIP). DELINQUENT TAXES: Taxes that remain unpaid on and after the date on which a penalty for non-payment is attached. DIVISION: An organizational unit within a department for purposes of administration and cost accounting. EMS: Emergency Medical Services ENTERPRISE FUND: (1) A fund established to account for operations financed and operated in a manner similar to private business enterprises. In this case, the governing body intends that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. EXPENDITURES: Where accounts are kept on the accrual or modified basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purchases are made. FINES & FORFEITS: A sum of money imposed or surrendered as a penalty. FISCAL DISPARITIES: A distribution of 40% of the growth in commercial and industrial properties within the seven -county metropolitan area since 1971. FISCAL YEAR: A 12 -month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. 202 FULL FAITH AND CREDIT: A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds). FUND: An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The excess of a fund's assets over its liabilities, generally called a reserve. A negative fund balance is sometimes called a deficit. GENERAL FUND: The fund used to account for all financial resources, except those required to be accounted for in another fund. GENERAL OBLIGATION BONDS: When a government pledges its full faith and credit to the repayment of the bonds it issues, those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds that are to be repaid from taxes and other general revenues. GENERAL OBLIGATION REVENUE BONDS: Intended to be paid first from the revenues of the enterprise fund. They are backed by the full faith, credit and taxing power of the City. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the GAAP. G.I.S.: Geographic Information System GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): The authoritative accounting and financial reporting standard-setting body for government entities. GOVERNMENTAL FUNDS: Funds used to account for the acquisition, use and balance of expendable financial resources and the related current liabilities -except those accounted for in proprietary funds and fiduciary funds. Under current GAAP, there are four governmental fund types: general, special revenue, debt service and capital projects. GPS: Global Positioning System 203 GRANT: A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the state and federal governments. Grants are usually made for specified purposes. HIGHWAY MAINTENANCE: An intergovernmental revenue from the State to be used for maintenance of the municipal state aid street system. The money comes from the state gasoline tax and fees from motor vehicle registration. HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA): A property tax relief program that replaced the former homestead credit program and the agricultural credit program. HACA is tied to class rate reductions for certain classes of property. HRA: Housing and Redevelopment Authority. The HRA may buy, own and sell land for housing and economic development purposes and engage in other housing and redevelopment activities consistent with MN law. INFRASTRUCTURE: The basic facilities, equipment, services and installations needed for the growth and functioning of a community. Includes roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. INTERGOVERNMENTAL REVENUES: Revenues from other governments in the form of grants, entities, shared revenues or payments in lieu of taxes. INTERNAL SERVICE FUND: A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost reimbursement basis. LEGAL DEBT LIMIT: The maximum amount of outstanding gross or net debt legally permitted. LEGAL DEBT MARGIN: The legal debt limit less outstanding debt subject to limitation. LEGISLATIVE: Having the power to create laws. LEVY: (1) (Verb) To impose taxes, special assessments or service charges for the support of government activities. (2) (Noun) The total amount of taxes, special assessments or service charges imposed by a government. LOCAL GOVERNMENT AID (LGA): A state government revenue sharing program for cities and townships that is intended to provide an alternative to the property tax. LGA is distributed through a formula based on tax base, population, population decline, age of housing and the percent of market value classified as commercial or industrial. LOCAL PERFORMANCE AID (LPA): A state program for cities and counties that is intended to provide an incentive for local governments to develop performance measurement systems. 204 MARKET VALUE: An assessor's estimate of what property would be worth on the open market if sold. The market value is set on January 2 of the year before taxes are payable. MARKET VALUE HOMESTEAD CREDIT (MVHC): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxes by providing a credit or reduction on the amount of property taxes. MARKET VALUE HOMESTEAD EXCLUSION (MVHE): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxes by excluding a portion of property value from taxation. MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures other than accrued interest on general long- term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. MATURITIES: The dates on which the principal or stated value of investments or debt obligations mature and may be reclaimed. OBJECT OF EXPENDITURE: Expenditure classification based upon the types or categories of goods and services purchased. Typical objects of expenditure include- - personal services (salaries and wages); - charges and services (utilities, maintenance contracts, travel); - supplies and materials; and, - capital outlay. OBJECTIVE: Serving as a goal; being the object of a course of action. OPERATING BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for the calendar year and the proposed means of financing them (revenue estimates). OPERATING EXPENSES: Proprietary fund expenses related directly to the fund's primary activities. OPERATING TRANSFER: Routine and/or recurring transfers of assets between funds. ORDINANCE: A formal legislative enactment by the government body of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies. OTHER CHARGES: A level of budgetary appropriations, which includes expenses for outside professional services, advertising, insurance, utility costs, repairs maintenance and miscellaneous costs. 205 PERA: Public Employees Retirement Association PERFORMANCE MEASURES: A quantitative or qualitative measurement of activity. PERSONAL SERVICES: A level of budgetary appropriations, which includes expenses for salaries, wages, and related employee benefits such as the City's share of retirement and insurance. POLICE DEPARTMENT AID: An intergovernmental revenue from the State to be used to maintain the Police Department. A premium tax of two percent is imposed on automobile insurance and apportioned to qualifying cities. POLICY: A set of guidelines used for making decisions. PRE-EMPTIVE DEVICES: Radio frequency controlled traffic light on emergency vehicles. PROGRAM: Group activities, operations or organizational units directed to attaining specific purposes or objectives. PROPRIETARY FUNDS: Account for government's ongoing organizations and activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses and transfers relating to the government's business and quasi -business activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination on net income, financial position and changes in financial position. Includes enterprise and internal service funds. RESERVES: Assets kept back or saved for future use or special purpose. RESIDUAL EQUITY TRANSFER: Non-recurring or non -routine transfers of assets between funds. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of the government's proprietary funds (those funds where service charges will recover costs of providing those services). REVENUE: The term designates an increase to a fund's assets which- - does not increase a liability (e.g., proceeds from a loan); - does not represent a repayment of an expenditure already made; - does not represent a cancellation of certain liabilities; and - does not represent an increase in contributed capital. REVENUE ESTIMATE: A formal estimate of how much revenue will be earned from a specific revenue source for some future period; typically, a future fiscal year. 206 SPECIAL ASSESSMENT: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. SUPPLIES: A level of budgetary appropriations, which includes expenses for commodities that are used such as office supplies, operating supplies, repair and maintenance supplies. TAX CAPACITY: A valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. The assessor determines the estimated market (resale) value of the property. This value is converted to tax capacity by a formula specified in state law. TAX CAPACITY RATE: The property tax rate that is based on the taxes levied as a proportion of the property value. A tax rate of 18.751 % produces $18.75 of taxes on each $100 of tax capacity that a property is valued at. TAX LEVY: The total amount to be raised by general property taxes for the purposes stated in the resolution certified to the County Auditor. TAXES: Compulsory charges levied by a government to finance services performed for the common benefit. TRUTH IN TAXATION: The "taxation and notification law" which requires local governments to set estimated levies, inform taxpayers about the impacts, and hold a separate hearing to take taxpayer input. VARIANCE: A relaxation of the terms of the zoning ordinance where such variance will not be contrary to the public interest and where, owing to conditions peculiar to the property and not the result of the actions of the applicant, a literal enforcement of the ordinance would result in unnecessary and undue hardship. WORKING CAPITAL: Current assets minus current liabilities. WORKLOADS: A measure of the services provided. 207 This page left blank intentionally. 208