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Home My WebLink AboutBudget - 20162016 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 2016 Annual Operating Budget Table of Contents (click on description for direct link) Introduction 72 Public Official Listing.................................................................................... 1 OrganizationalChart ....................................................................................... 2 BudgetMessage.............................................................................................. 3 City Council Resolution Adopting Budget ..................................................... 29 Valuesand Goals............................................................................................ 32 Budget Development Process......................................................................... 33 2016 Budget Development Calendar.............................................................. 34 Accounting, Auditing and Financial Reporting Policy ................................... 36 OperatingBudget Policy................................................................................. 37 RevenuePolicy............................................................................................... 39 Capital Improvement Policy........................................................................... 39 Debt Administration....................................................................................... 40 Revenue Projections....................................................................................... 42 2016 Budget Summary by Fund Type............................................................ 47 2016 Budget Summary — Revenues and Expenditures Fund Summary.......... 48 2016 Budget Summary — Revenues and Expenditures All Funds .................. 49 2016 Budget Summary — Revenues and Expenditures by Fund Type ............ 50 Revenue Comparison — General Fund............................................................ 51 Expenditure Comparison — General Fund ....................................................... 52 Expenditure Budget Summary — By Department — General Fund .................. 53 2016 FTE Summary........................................................................................ 54 2016 Capital Improvement Budget................................................................. 55 General Fund Definition........................................................................................................ 57 Statement of Revenues, Expenditures and Changes in Fund Balance ............ 59 Mayor& Council............................................................................................ 60 Administration................................................................................................ 61 Newsletter....................................................................................................... 62 HumanResources........................................................................................... 63 Attorney.......................................................................................................... 64 CityClerk....................................................................................................... 65 Elections......................................................................................................... 66 Financial Administration................................................................................ 67 Assessing........................................................................................................ 68 InformationSystems....................................................................................... 69 Planningand Zoning....................................................................................... 70 Engineering..................................................................................................... 71 General Fund (Continued) Facilities Management.................................................................................... 72 PoliceProtection............................................................................................. 73 FireProtection................................................................................................ 74 ProtectiveInspection...................................................................................... 75 EmergencyManagement................................................................................ 76 AnimalControl............................................................................................... 77 Streets& Highways........................................................................................ 78 Snow& Ice..................................................................................................... 79 StreetSigns..................................................................................................... 80 TrafficSignals................................................................................................ 81 StreetLighting................................................................................................ 82 StreetLights Billed......................................................................................... 83 Parks& Recreation......................................................................................... 84 Natural Resource Preservation........................................................................ 85 Recycling........................................................................................................ 86 Unallocated..................................................................................................... 87 Special Revenue Funds Definition........................................................................................................ 89 Statement of Revenues, Expenditures and Changes in Fund Balance — All Special Revenue Funds............................................................................ 91 Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 92 FundOverview........................................................................................ 93 Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 94 FundOverview........................................................................................ 95 Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 96 FundOverview........................................................................................ 97 Drainage and Mapping Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 98 FundOverview........................................................................................ 99 Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 100 FundOverview........................................................................................ 101 Forestry Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 102 FundOverview........................................................................................ 103 CITY OF ANDOVER 2016 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 Permanent Improvement Revolving Bonds — 2010A G.O. PIR 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 Charitable Gambling Fund State Aid Bonds — 2009A G.O. State Aid Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 106 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 132 FundOverview........................................................................................ 107 Fund Overview........................................................................................ 133 Construction Seal Coating Fund General Obligation Bonds — 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 108 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 134 FundOverview........................................................................................ 109 Fund Overview........................................................................................ 135 Debt Service Funds Capital Projects Funds Definition........................................................................................................ 111 Definition ........................................................................................................ 137 Statement of Revenues, Expenditures and Changes in Fund Balance — All Statement of Revenues, Expenditures and Changes in Fund Balance — All Debt Service Funds.................................................................................. 113 Capital Projects Funds............................................................................. 139 Certificates / Capital Notes — 2011A G.O. Equipment Certificate Water 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 Certificates / Capital Notes — 2012A G.O. Equipment Certificate Sewer Trunk 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 Certificates / Capital Notes — 2014A G.O. Equipment Certificate Storm Sewer 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 General Obligation Bonds — 2012B G.O. Capital Improv Refunding Bonds Road and Bridge Fund 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 — 2004 EDA Public Facility Lease Revenue Bonds Park Dedication Projects 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 — 2006 EDA Public Fac Lease Rev Refunding Bonds Building Fund 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 Lease Revenue Bonds — 2007 EDA Public Fac Lease Rev Refunding Bonds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance ..... 126 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 152 FundOverview........................................................................................ 127 Fund Overview........................................................................................ 153 General Obligation Bonds — 2012C G.O. Abatement Bonds Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance ..... 128 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 154 FundOverview........................................................................................ 129 Fund Overview........................................................................................ 155 CITY OF ANDOVER 2016 Annual Operating Budget Table of Contents (click on description for direct link) Capital Projects Funds (Continued) 2012A G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance ..... 156 FundOverview........................................................................................ 157 2014 G.O Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance ..... 158 FundOverview........................................................................................ 159 2016 G.O Equipment Certificates 189 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 160 FundOverview........................................................................................ 161 Tax Increment Projects 201 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 162 FundOverview........................................................................................ 163 Permanent Improvement Revolving 203 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 164 FundOverview........................................................................................ 165 2010A G.O. Open Space Referendum Bonds 205 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 166 FundOverview........................................................................................ 167 Enterprise Funds Definition........................................................................................................ 169 Statement of Revenues, Expenditures and Changes in Retained Earnings — All Enterprise Funds................................................................................ 171 Water Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 172 FundOverview........................................................................................ 173 Sanitary Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 174 FundOverview........................................................................................ 175 Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 176 FundOverview........................................................................................ 177 Internal Service Fund Definition........................................................................................................ 179 Statement of Revenues, Expenditures and Changes in Fund Balance — All Internal Service Funds............................................................................. 181 Central Equipment Maintenance Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 182 FundOverview........................................................................................ 183 Internal Service Fund (Continued) Risk Management Statement of Revenues, Expenditures and Changes in Fund Balance ..... 184 FundOverview........................................................................................ 185 Appendix Budget Year 2016 — Operating Transfers....................................................... 187 2016 — 2020 Capital Improvement Plan Development Calendar .................... 188 Capital Improvements Plan 2016-2020.......................................................... 189 Summary of Outstanding Bond Issues............................................................ 199 Future Debt Service Requirements................................................................. 200 Computation of Legal Debt Margin................................................................ 201 Property Tax Levies and Collections.............................................................. 202 Special Assessment Levies and Collections................................................... 202 Principal Taxpayers........................................................................................ 203 Building Permits, Property Values and Households ....................................... 203 Demographics................................................................................................. 204 Miscellaneous Statistical Data........................................................................ 205 Glossaryof Terms........................................................................................... 206 This page left blank intentionally. Table of Contents CITY OF ANDOVER Adopted 2016 City Budget Julie Trude Mayor Sheri Bukkila Councilmember Jim Goodrich Councilmember Valerie Holthus Councilmember Michael Knight Councilmember James Dickinson City Administrator / City Clerk David Carlberg Community Development Director David Berkowitz Director of Public Works / City Engineer Fred Patch Building Official Jerry Streich Fire Chief 0 Administration Building Inspections City Clerk Administrative Emergency Clerk's Office Services Management Human Resources Protective Elections Inspections Newsletter I I I Animal Control Economic Development Authority Community Center Charitable Gambling Recycling Information Systems Table of Contents CITY OF ANDOVER 2016 Organizational Chart Trail & Transportation Construction Seal Coating Water Trunk Storm Sewer Sewer Trunk Road & Bridge Park Dedication Projects Reserve Debt Service Funds Tax Increment Projects Building Fund Permanent Improvement Revolving G.O. Capital Notes Risk Management 2 Parks & Recreation Water Sewer Central Equipment Natural Resources Preservation Residents City Council City Attorney City Admin istrator AdvisoryBoards Engineering Finance Fire Protection Planning Public Works Police Protection Engineering Financial Fire Protection Planning & Zoning Streets/Highways Services Administration Services Right -of -Way Assessing CDBG Snow & Ice Management Removal Drainage & Facilities Street Lighting Mapping Management Lower Rum River Unallocated Signage Watershed Mgmt Organization Forestry Cap ital Equipm ent Traffic Signals Trail & Transportation Construction Seal Coating Water Trunk Storm Sewer Sewer Trunk Road & Bridge Park Dedication Projects Reserve Debt Service Funds Tax Increment Projects Building Fund Permanent Improvement Revolving G.O. Capital Notes Risk Management 2 Parks & Recreation Water Sewer Central Equipment Natural Resources Preservation 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 2016 City Budget DATE: December 1, 2015 INTRODUCTION Table of Contents 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, 2015. In response to these requirements, a proposed budget was presented to Council on September 1, 2015 in advance of this deadline. Council held budget -planning sessions on March 24, April 28, May 26, June 23, July 21, and August 25 to discuss budget priorities and adopted the preliminary 2016 City Levy on September 1, 2015. Additional budget discussion was held with the Council on September 22, October 20, and November 24 before the public hearing that was held on December 1, 2015. The Council's final action on adopting the 2016 City Budget and 2016 Levy occurred on December 1, 2015. The official adoption of the 2016 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 28, 2015. 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 2016. Table of Contents Mayor, Councilmembers, Residents 2016 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. GENERAL INFORMATION The city we know today as Andover was first organized in 1857 under the name "Round Lake Township." However, in 1860 the name was changed to "Grow Township" in honor of Senator Galusha A. Grow of Pennsylvania. Senator Grow spoke at a political campaign in Anoka that year, and the town name was changed to reflect Senator Grow because of his strong advocacy of the Union cause. At that time, the population was 330 and included the geographical area we know today as Ham Lake. In fact, the area of Ham Lake was considered a part of Grow Township until 1871. In 1972, the Grow Township Board of Supervisors recognized that the town was growing at a very rapid rate. They felt a village form of government would provide better services to the community. Board supervisors then voted in favor of proceeding with the incorporation process. The board voted to submit a new name for the village. "Andover Village" was chosen because the name Andover had historical interest. The historical interest, we believe, came from the Andover train station. You may have heard the popular "train myth" about how Andover received its name. The myth states that a train tipped over in a swamp, and an eyewitness, relaying the incident, said it "went over and over," thereby naming the city "Andover." However, research reveals that the name Andover first appeared in an article dated March 14, 1899 in the Anoka County Union Newspaper - before train tracks were ever built in the city. The article stated that the Eastern Minnesota line of the Great Northern Railway was in the process of constructing railroad tracks from the Coon Creek Cut-off to the North. The railway announced that new railroad stations with mathematical precision were to be located five miles apart from each other. The new stations (from Coon Creek to the North, along the new railroad line) were to be named Andover, Cedar, Bethel, Isanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4, 1899, the first train passed through the Andover station. Where the railway came up with the name Andover still remains unknown. Andover Village was established in 1972 and then became the City of Andover, a city of the fourth class, in 1974. Today the City of Andover's population exceeds 20,000, classifying it as a second class city. 4 Mayor, Councilmembers, Residents 2016 Adopted City Budget BUDGET GUIDELINES Table of Contents The following are City Council's 2016 Budget Development guidelines established by the City Council on April 7, 2015, 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 4.35% increase in total taxable market value. 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2016 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 2015 adopted General Fund 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. 3) A commitment to limit the 2016 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 2016 Debt Levy is currently at 18.12%. 25% will provide a reasonable margin to accommodate an equipment note and loran improvement bond if it is determined that an additional debt issuance is needed. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year -based replacement schedule. Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget Note: The City Vehicle Purchasing Committee performed this analysis and has made recommendations to the City Council as part of the 2016 2020 Capital Improvement Plan (CIP) that was adopted at the October 20, 2015 City Council meeting. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Note: The City continually maintains various financial models to determine the long-term impacts of present day expenditures and financing decisions. Fiscal assumptions are based upon various financial indicators including growth factors, tax capacity valuations, per capita spending and debt ratios. These models were utilized in the development of the 2016 Budget. 6) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. Note: A strategic planning session was held with the City Council. The final Council Community Vision and Organization Goals and Values document was approved at the July 7, 2015 City Council meeting. Direction provided in that document is being integrated into various department work plans and budgets. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns and demands, and to do so in a cost-effective manner. Note: The City Council formally adopted a Council Community Vision and Organizational Goals and Values document. Management, through these goals and values, pays special attention to fiscal trends, 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 6 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 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 2015, the City issued 74 new single-family building permits with a total valuation of $19,631,775 compared to 52 new single-family building permits with a total valuation of $14,296,964 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 2015 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 310 single family rental licenses issued throughout the City in 2015. 2) In 2015 the City again saw a resurgence in new residential development including the development of 99 lots known as Country Oaks North Second Addition, an 18 lot subdivision know as Winslow Woods Second Addition, an 18 lot residential planned unit development known as Carson Ridge, 12 residential units known as B & D Estates, 6 residential unit subdivision known as Shadow Ponds, 16 units known as White Pine Wilderness Second Addition, 10 lot residential subdivision know as Hickory Meadows Second Addition and a 27 lot residential development known as Catchers Creek Second Addition. 3) In 2015 the City of Andover, in cooperation with the Anoka County Highway Department, worked through the planning of the Bunker Lake Boulevard expansion and reconstruction. Construction is set to start in 2016 and will be financed primarily by a federal grant. A trail underpass from the City trails system to Bunker Hills Regional Park is planned as part of the project. 4) In 2015 the City welcomed the construction of a new Acapulco restaurant on an Andover Station North commercial parcel. The construction of the restaurant on a site adjacent to the new Wal-Mart and other Andover Station North businesses will complete the Bunker Lake Boulevard frontage on the Andover Station North development. The restaurant is anticipating a July 2016 opening. 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 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget future, anticipated to start in 2016-2017. Additionally, the City EDA sold another parcel to DSTI, where 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 within the next five years. 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 located to the City of Andover. Through 2015, the employment has exceeded over 200 employees. Talks of a future expansion of the facility with TE Connectivity have already started to accommodate the growth of the company. 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 2015 the City EDA sold a two acre parcel in the Andover Station North development area to Foundation Hill Montessori. This parcel was immediately adjacent to Foundation Hill's current facility. The sale followed with a 6,000 sq ft expansion of the Foundation Hill Montessori School and the platting of an additional lot that Foundation Hill will market to a compatible business. 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. Building plans were approved in 2015 and construction of the project is expected to occur in 2016. 8 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 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. In 2015 we saw the development of B & D Estates of which the residual EDA parcel helped add four single family residential lots to the B & D Estates development. 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. In 2015, the old convenience store/gas station parcel was sold to Inventure Properties Inc, for the construction of a 12,000 sq. ft. office building along with a residual parcel that Inventure Properties can sell for a compatible use. 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 and was in full operation starting the spring of 2015. 13) The City started working with a development group in 2015 to transform the Bunker Lake Boulevard/ Hanson Boulevard intersection from a vacant convenience store/gas station to a new strip -mall project to include restaurants and service businesses. Construction of the new facility is anticipated to take place spring 2016. 14) In 2015, City Staff continues to work with the State of Minnesota Board of Soil and Water Resources on a wetland restoration of the old Woodland Creek Golf Course parcel. The City acquired the old 74 acre golf course in late 2013, subsequently a 6 acre parcel was sold to a developer and a 6 unit subdivision called Shadow Ponds was the outcome. The remaining acreage will be a restored wetland with passive nature trails. Construction is anticipated to take place in 2016 through 2018. 15) The City started the master planning of the City Campus site in 2015 to prepare for the facility needs for the ultimate build out of the City. The planning will assess Public Works, Public Safety, General Government and Recreational needs of the community. 9 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 16) Andover residents continue to have one of the highest recycling rates per person for all recyclable materials in Anoka County. In 2014 the City completed the construction of a new Recycling Center and that facility was put into full operation in 2015. This construction was financed by Anoka County grants in an effort to expand the current recycling opportunities for Anoka County residents. 17) A strategic planning session was held with the City Council, a final Council Community Vision and Organization Goals and Values document was approved at the July 7, 2015 City Council meeting. Direction provided in that document is being integrated into various department work plans and budgets. This event was facilitated by the City Administration Department. 18) 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). The last parcel was purchased in 2015; Dalske Woodlands is a 40 acre parcel of pristine woodland. Throughout 2015, the City Parks Department focused on creating nature trails, appropriate signage and accessibility to all of the open space parcels. 19) The City's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2014 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 thirteenth consecutive year receiving the award and it is anticipated that the City's CAFR for the year ended December 31, 2015 will also achieve this award. 20) For the fourteenth year in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2015 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. 21) 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, eliminated the need for office expansion and has expedited City research projects. IH Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 22) 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 2015 the City saw increased growth in the number of online and counter credit card payments for various City permits and services. OVERVIEW The Adopted 2016 Budget anticipates General Fund revenues in the amount of $10,390,411 to meet anticipated budgeted expenditures in the amount of $10,697,788, thus a decrease in (use of) fund balance is planned. As a result, total General Fund balance reserves are projected to decrease to 66.4% in 2015 as compared to 72.9% in 2014 in conjunction with corresponding expenditures for those years. The Adopted 2016 General Fund Budget represents an increase in expenditures of $359,058 over last year. Designated capital operating levies increased $79,016 in 2016 bringing the balance to $1,415,984. The 2016 Debt Service Levy includes two equipment notes, capital improvement bonds, abatement bonds and the open space referendum bonds; and decreases the City debt ratio to gross City levy to 18.12% from 19.17% for the prior year. The increase in General Fund expenditures is primarily related to the increase in Fire State Aid that's passed thru to the Fire Relief Association and the replacement of park playground structures/equipment and fire turnout gear, which are now funded through operations. 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 received zero LGA funding; in 2016, the City will be receiving $2,698 as notified by the State. General Fund expenditure trends since 2010 are as follows: 11 Mayor, Councilmembers, Residents 2016 Adopted City Budget Expenditures Expenditures Before Transfers Population Per Capita 2010 Actual $ 8,573,058 2011 Actual $ 8,713,796 2012 Actual $ 8,857,701 2013 Actual $ 9,455,074 2014 Actual $ 9,881,410 2015 Estimate $ 10,375,695 2016 Adopted $ 10,697,788 % Change n/a 30,598 $ 280.18 1.64% 30,847 $ 282.48 1.65% 31,125 $ 284.58 6.74% 31,692 $ 298.34 4.51% 31,874 $ 310.01 5.00% 32,050 $ 323.73 3.10% 32,230 $ 331.92 Table of Contents 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 2016 Adopted Budget provides for an adopted tax capacity rate of 38.279%, which compares to 37.069% for 2015 (this rate comparison excludes the open space and watershed levies). The 2016 increasing tax capacity rate is reflective of the decrease in the fiscal disparities distribution and the increase in the gross levy to capture the new growth. 45.0% Tax Capacity Rates 40.0% 35.0% 30.0% 2010 2011 2012 2013 2014 2015 2016 Note: The tax capacity rates do not include the open space and watershed levies. 12 Tax Capacity Values Tax Capacity Rates % Change % Change 2010 $ 28,726,619 n/a 36.484% n/a 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 $ 25,705,350 16.96% 37.069% -14.19% 2016 $ 26,870,365 4.53% 38.279% 3.26% 45.0% Tax Capacity Rates 40.0% 35.0% 30.0% 2010 2011 2012 2013 2014 2015 2016 Note: The tax capacity rates do not include the open space and watershed levies. 12 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget Some highlights of the Adopted 2016 Budget are as follows: Capital Projects Levy — The 2016 Budget specifically designates $1,415,984 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($250,000), Road and Bridge ($1,089,146), Pedestrian Trail Maintenance ($61,838) and Park Projects ($15,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is 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. • Road and Bridge — Under the Capital Projects Levy, a total of $1,150,984 is for transportation programming related to maintaining City streets, roadways and pedestrian trails. This will be the thirteenth year that a portion of the Road & Bridge Fund ($61,838) will be dedicated to pedestrian trail maintenance representing approximately 5.37% of that levy. $331,300 is designated to the City's seal coating and crack sealing programs, with the remaining $757,846 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 9.93% of the Gross Tax Levy and increased $125,516 a compared to the 2015 levy. • Park Improvements — Under the Capital Projects Levy, $15,000 is designated for miscellaneous park related capital projects that come up throughout the year. This is a decrease of $46,500 in funding as the emphasis on maintaining/preserving parks the City currently has was re -assigned to the General Fund to focus on parks maintenance/replacement items. • 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 2016 levy remains the same as the 2015 levy. 13 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget Sheriff's Police Contract Services — The Anoka County Sheriff's contract reflects a 0.62% general increase ($18,159). The 2016 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 3.10% increase ($5,640) over the 2015 budget. City Attorney criminal prosecutions have increased over 15% since 2005. Council Memberships and Contributions — The following are included as part of the 2016 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 $ 9,427 - membership $ 3,366 - program contribution $ 8,500 - program contribution (youth services) $15,328 - program contribution (domestic abuse programs) $12,000 - program contribution (youth services) $10,000 - program contribution (youth services) $ 8,100 - program contribution (youth services) $ 1,500 - program contribution (mental health services) The following memberships/contributions are included as part of the 2016 budget in other funds: ■ Youth First — City Partner Fee ■ Teen Center Funding (YMCA) ■ Alexandra House ■ Senior High Parties ■ Family of Promise ■ Stepping Stone $ 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 14 - program contribution (youth services) - program contribution (youth services) - program contribution (domestic abuse programs) - donation (youth programs) - program contribution (homelessness programs) - program contribution (homelessness programs) Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost Reallocation — The 2016 Budget does not include any additional full time staffing. Cost -of -Living Adjustments — The total compensation package for 2016 includes step changes for eligible employees and a 2.5 % 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 ninth year the City will be offering a high deductible insurance plan with a health savings account (HSA). CITY GROWTH New institutional/commercial/industrial construction did occur in 2015. The Foundation Hill Montessori School located at 1750 — 139th Lane NW completed the construction of a 5,700 square foot addition. Renovation of the vacant bank building at 1777 Bunker Lake Blvd NW was completed with new tenants: Premier Bank and Essentials of Life Chiropractic. New residential development included the development of a 99 lot subdivision known as Country Oaks North 2nd Addition, which consists of 85 urban lots with city water and sewer and 14 rural lots between one and two acres with septic and well; a 18 lot urban development know as Winslow Woods 2nd Addition; a 10 lot urban residential development known as Hickory Meadows 2nd Addition; and a 27 lot urban development known as Catcher's Creek 2nd Addition. The City currently has a supply of 197 single family urban lots and 13 single family rural lots. In 2015, the City issued 74 new single-family building permits with a total valuation of $19,631,775 compared to 52 new single-family building permits with a total valuation of $14,296,964 for the same point in time in the preceding year. The City has not issued any new multi- family dwelling permits in last five 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. 15 Table of Contents Mayor, Councilmembers, Residents 2016 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 2015 Estimate % Change Population 20,497 32,050 56 Housing Units 6,300 10,273 63 Streets (miles) 150 200 33 Cul-de-sacs 155 345 123 Storm Sewer (miles) 18 76 322 Water Main (miles) 35 116 231 Sanitary Sewer (miles) 53 96 81 Parks (Number) 54 68 26 Developed Park Acreage 512 595 16 Trails (miles) 0 37 100 Developed Residential (acres) 7,750 9,572 24 Undeveloped Residential (acres) 14,616 12,924 (12) Fire/Medical Runs 625 598 (4) Growth Factors 2000 2015 Estimate Calls for Service — Police 9,588 Incident Reports 8,385 Note: Reference Year is 2000 due to database reporting changes. 10,400 9,505 16 % Change 8 13 Mayor, Councilmembers, Residents 2016 Adopted City Budget CAPITAL OUTLAY/IMPROVEMENTS Table of Contents Requests for capital outlay/improvements in the Adopted 2016 Budget are funded through a variety of sources including the General Fund and 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 2016 Budget amounts to $6,021,000. Of that total amount, $94,000 will be funded by the General Fund levy, $360,000 will be funded by the capital equipment/project levy and reserves and the remaining through other funding sources. The City's 2016 - 2020 Capital Improvement Plan (CIP) process was instrumental in producing the outcomes outlined in the 2016 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 2016 — 2020 CIP, please see the appendix for a brief description of each item and/or go to the City's website at www.andovermn.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 major repair or replacement in a park including shelters, parking lots, fencing, etc. Funding for these projects is through the General Fund Levy. $225,000 is budgeted for the replacement of three mowers of varying sizes. Two will be sold and/or traded in and one will be kept as a backup. Funding for these items is contemplated through the issuance of equipment notes. Facility Management - $50,000 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 Community Center Special Revenue Fund and 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. Funding for this project is through the Capital Equipment Reserve Capital Projects Fund. 17 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget Park Improvement Projects - $200,000 is budgeted for the Timber Trails Park renovation. This project will include renovating/upgrading the existing ballfield, adding a well and irrigation and regrading the existing soccer field. $35,000 is budgeted for irrigating Terrace Park and $23,000 is budgeted for the wiring of scoreboards moved to Sunshine Park. Funding for these projects is through the Park Dedication Capital Projects Fund. Fire Services - $19,000 is budgeted for replacing worn turnout gear, this is an annual allotment for the replacement of 8 — 10 sets per year; funded by the General Fund. $250,000 is budgeted for the replacement of 35 self contained breathing air (S.C.B.A) packs and 70 breathing air bottles that are close to their expiration date; funded by the Capital Equipment Reserve Capital Projects Fund. $35,000 is budgeted for replacing 70 handheld and mobile radios that are no longer available, this is an annual allotment to replace 8 — 10 radios per year; funded by the Capital Equipment Reserve Capital Projects Fund. $40,000 is budgeted for the replacement of the Fire Marshall's vehicle and $80,000 is budgeted for the replacement of the breathing air compressor at Station 91. Both items are continually breaking down and are crucial to the operations of the Fire Department in responding to emergencies and performing daily functions. Funding for these two items is contemplated through the issuance of equipment notes. 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 $307,377 of fund balance to cover operations in 2016. The work done by staff relative to the 2015 revenue and expenditure estimates has achieved the Council 2016 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 45% of planned 2016 General Fund expenditures available from the 2015 budget (the targeted fund balance is approximately $4,814,005). The estimates are also necessary to preserve the following emergency reserve fund balances for core services: ■ Snow Emergency ($80K) - salt and sand needed for an abnormal snowfall season ■ Public Safety ($80K) - police, fire and civil defense unexpected costs ■ Facility Management ($80K) - roofing, HVAC and emergency facility repairs ■ Information Technology ($80K) - phone system and network server emergencies ■ Economic Development ($300K) — TIF Management Fee Migration 18 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget In the Special Revenue Funds, the Economic Development Authority (EDA) Fund is projected to decrease $110,160 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 Community Center Fund decreased $48,126 due to two CIP projects: rubber flooring in the rink ($36,000) and parking lot maintenance ($20,000). The Charitable Gambling Fund is projected to decrease ($10,700) due to the spend -down of monies collected in 2015 on qualifying public service expenditures. The Debt Service Funds are projected to increase by $163,002 in 2016. The fund balance of the 2012 G.O. Equipment Certificate is projected to increase ($83,185) due to the timing of when levies are collected and when debt service payments are made. The fund balance of the 2012B G.O. Capital Improvement Refunding Bonds is projected to decrease ($80,838) due to the final debt service payment being made in February 2016. The fund balance of the 2012C G.O. Abatement Bonds Fund is projected to increase ($131,924) due to the timing of when levies are collected and when the debt service payments are made. In the Capital Projects Funds, the Water Trunk Fund is increasing ($22,660) since there are no scheduled improvements planned for 2016. The Sewer Trunk Fund continues to increase ($372,415) with the establishment of the replacement reserve monies. The Road and Bridge Fund is decreasing ($1,128,473) in 2016 due to the advancement of a state aid project. The Park Dedication Projects Fund is decreasing ($113,050) due to the reallocation of general tax levy ($46,500) and a major renovation of an existing park. The Building Fund is decreasing ($86,596) 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 Trail and Transportation Fund is decreasing ($319,300) due to the construction of three trail segments. Since the approval of the 2016 Operating Budget, the City Council has approved an operating transfer of $200,000 in 2015 from the General Fund to the Trail and Transportation Fund. The Capital Equipment Reserve Fund is decreasing ($104,000) primarily due to the planned purchase of SCBA's for $250,000. The Tax Increment Projects Fund is decreasing ($730,000) 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 transferred to the debt service fund related to these bonds. 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 IE Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 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 exists to provide quality services to the public 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. 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 and capture new growth for community needs. D. City investments need to focus on long term sustainability. 20 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget E. While still providing excellent services to all Andover residents, look for and identify opportunities to reduce tax burdens whenever possible. F. Maintain property values and keep property taxes affordable through good fiscal management. G. Prioritize projects to best serve community priorities when resources are inadequate to address/meet all community demands. H. Plan ahead for large projects (master planning) to maintain consistent revenues and expenses to avoid property tax spikes. 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 parcels. B. Work with business owners and property owners to assist them in being successful in our community. C. Continually analyze existing commercial areas to determine if expansion is feasible and seek out new areas to better serve the community. D. Continually evaluate how to meet sewer/water and street needs of any proposed development and redevelopment projects. E. Review City development processes to help reduce unnecessary steps, time delays and development costs. F. Review development requirements to minimize impacts from overly burdensome requirements. G. Be aware of negative environmental impacts to our community including proposed developments and the attempt to mitigate where economically feasible and practical. H. Evaluate housing programs to determine useful programs that we could adopt that have a positive impact on community market value and preserve neighborhoods. I. Evaluate whether we are adequately providing locations, through zoning, for expanded commercial areas and "starter homes". J. Begin discussion for the 2018 Comprehensive Plan update, soliciting input from large property owners on land set aside for future development. K. Respond to regional and state initiatives that impact our City or residents through our organizational memberships. 3. COLLABORATION GOALS - the City is supportive of collaboration efforts that are cost-effective and improve efficiency in delivering services. A. Cautiously renew any new mandate to determine whether we need to act. B. Foster positive relationships with: school districts, Anoka County, and nearby cities. 21 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget C. Advocate for safe, efficient commuting routes for our residents and business owners. D. Support an effective and comprehensive transportation system. E. Support the upgrade of transportation routes to the Twin Cities Metro for our commuters. F. Work with waste/garbage haulers to determine if a more efficient garbage collection process for the community can be achieved without restricting the citizen's freedom to choose from all available companies. G. Evaluate how volunteers can help our community become a safer, more welcoming and attractive place to live. H. Continue to work with the railroad company that manages the tracks through Andover to reduce the interference trains have on traffic blockages and public safety. 4. SERVICE DELIVERY GOALS - the City is committed to providing efficient and cost-effective city services. A. Evaluate parks maintenance to ensure the City is preserving park assets and not committing to unsustainable service delivery. B. Continue fostering positive relationships with athletic, youth, and other service organizations to obtain their input and seek their contributions with time and funds towards community improvements. C. Alter packet format to improve viewing function on tablets and reduce redundancy found in the format. D. Keep current with advances in technology where appropriate. E. Analyze the "administrative fine" process to reduce use of courts, increase local revenues, and improve code compliance. F. Commit to providing the public with effective Public Safety through Fire and Law Enforcement services. G. Pursue local programming for the community youth. H. Continually review our processes to reduce unnecessary or unwanted service deliveries. I. Encourage quality building standards. J. Begin comprehensive evaluation of future Public Works needs on the city campus, hire an architect, begin the construction of new maintenance facility and related projects along with parkway road to come from Nightingale Street that equally benefits all citizens of Andover. K. Begin space needs study for Community Center expansion and financial pro forma, continue conversations with partners about their needs and finances. Create public process for public input. L. Continually evaluate whether we are following our Park Dedication Study when spending park dedication funds. M. Continue to maintain Kelsey Round Lake Park as a signature nature park. N. Preserve current trails and complete trails where we have missing connections or need to improve pedestrian safety. 22 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget O. Develop an effective Emergency Preparedness Plan to come to the aid of those in Andover when effected by community disasters. 5. LIVABILITY/IMAGE GOALS - the City recognizes that providing quality basic & desired services enhances the quality of life of our residents. A. Continue to support preservation of natural resources (land, water and air quality). B. Pursue management plan for Open Space properties that minimizes staff involvement and emphasizes users to create their own experience and support volunteer efforts to provide additional programming and activities. C. Improve community aesthetics by enhancing the corridor to the city campus with sustainable landscape plantings, seeking volunteer assistance. D. Look at ways to improve and coordinate a cohesive, attractive appearance along county corridors when the County upgrades roads. E. Explore new methods of collecting public feedback. F. Continually review newsletter content. G. Plan and provide quality city services to residents and adapting to changing demographics. H. Look at ways information from resident survey can be incorporated into goals, plans and policies. I. Find ways to utilize volunteers and engaged residents. J. Evaluate whether current policies and codes inhibit families from improving and upgrading their homes and remove unnecessary barriers to allow increased market value and updating of private property in ways that enhance neighborhoods. K. Support improvements to the website that provide residents with information that is user-friendly so they can be informed about recreation opportunities. 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: 23 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget ♦ 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 increase in 2016 reflective of the decrease in the fiscal disparities distribution and the increase in the gross levy to capture new growth. 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. ♦ 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 24 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 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 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. 25 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget ✓ 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. ✓ 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 2016 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. 26 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget 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. 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. 27 Table of Contents Mayor, Councilmembers, Residents 2016 Adopted City Budget The 2016 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. 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, tee. Jim Dickinson City Administrator / Finance Director 28 Table of Contents CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. R076-15 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2016 BUDGET AND 2016 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 28, 2015; and WHEREAS, Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 28, 2015. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2016 City of Andover Budget and the 2016 property tax levy totaling $11,593,925 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2016 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 10,390,411 General Fund $ 10,697,788 Special Revenue Funds 1,562,200 Special Revenue Funds 1,740,686 Debt Service Funds 2,479,273 Debt Service Funds 2,316,271 Capital Projects Funds 4,896,471 Capital Projects Funds 6,935,077 Enterprise Funds 5,153,096 Enterprise Funds 4,912,499 Internal Service Funds 1,113,344 Internal Service Funds 1,167,967 Total $ 25,594,795 Total $ 27,770,288 Adopted by the City of Andover this 1 st day of December 2015. ATTEST: Michelle Harmer — Deputy City Clerk CITY OF ANDOVER Julie Trude - Mayor 29 CITY OF ANDOVER, MINNESOTA 2016 Property Tax Levy General Fund Levy General Operations Park Repair/Replacement Items Total General Fund 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 30 2016 Levy $ 7,947,528 90,000 8,037,528 186,291 142,885 498,435 977,332 295,470 2,100,413 250,000 15,000 1,089,146 61,838 40,000 1,455,984 $ 11,593,925 Table of Contents Attachment A Table of Contents 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. R076-15 adopting the City of Andover 2016 Budget and 2016 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 1 st day of December 2015. Michelle Harmer — Deputy City Clerk 31 Table of Contents Values and Goals 1. EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES The City of Andover exists to provide quality services to the public 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 ensure city services keep pace with the city's growing and changing population. Goal #2 To enhance communication with the public. Goal #3 To support processes that involve citizen engagement. Goal #4 To develop and update the city's capital improvement program. Goal #5 To broaden and preserve the city's tax base. Goal #6 To balance and prioritize provision of city services with available resources. Goal #7 To respect the environment. 32 Table of Contents 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 not fall under this exemption and held a meeting pertaining to the 2016 Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 1, 2015 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 1, 2015. The adopted 2016 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 28, 2015. 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 2016 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 33 Date February 24, 2015 March 3, 2015 March 24, 2015 April 6, 2015 April 6 — May 1, 2015 Table of Contents CITY OF ANDOVER 2016 Budget Development Calendar Activity Responsibility Council Workshop to discuss budget guidelines. City Council / Staff Council adopts 2016 Budget Development Guidelines. Council review of 2016 budget guidelines. 2016 Budget Calendar. Prepare base budgets and line item budget pages. April 21, 2015 Council budget progress report distributed. May 1, 2015 Distribution of base budgets, personnel services, capital budget forms and line item budget pages to all Department Heads. May 1, 2015 Begin preparation of performance measures. June 1, 2015* Department of Revenue notifies of required dates. June 2, 2015 Prepare preliminary 2016 revenue estimates. June 23, 2015 Council budget discussion. July 1, 2015** Requests for additional full-time staff to City Administrator. July 1, 2015** 2016 Budget forms and prioritization of adjustments to base, capital outlay requests due to Finance. July 1, 2015** Staff preparation of 2015 budget expenditure estimates. July 2 — 6, 2015 Compile and prepare documents for Management Team. July 6, 2015 General Fund levy calculations. July 8 - 9 & 13 — 14, 2015 2016 Budget Decision packages prioritized and finalized. July 13, 2015 Deadline for updated performance measures to City Administrator. July 13 — 17, 2015 Preparation of final draft of 2016 Proposed Budget for Council Workshop. *preliminary ** no exceptions Continued 34 City Council / Staff 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 CITY OF ANDOVER 2016 Budget Development Calendar Date Activity July 28, 2015 Council discussion of budget development progress. Receives 2016 Proposed Budget. July 28, 2015 Council budget discussion. August 7, 2015* County notifies City of school district & county public hearing dates. August 25, 2015 City Council follow-up workshop for review of 2016 Proposed Budget. August 25, 2015 City Council preview of Proposed 2016 Tax Levy Presentation. September 1, 2015 State Department of Revenue (DOR) to certify levy limits for 2016 September 1, 2015 (Req.) City to adopt proposed levy and select public hearing dates. September 15, 2015 (Req.) Proposed tax levy must be certified to County. September 22, 2015 City Council Budget discussion — focus on SRF, DSF, CPF, EF & ISE September 30, 2015 (Req.) October 27, 2015 November 6 — 18, 2015* November 24, 2015 December 1 - 14, 2015* (Req.) December 1, 2015 December 1, 2015 December 28, 2015* (Req.) January 19, 2016* January 22, 2016 January 22, 2016 March 15, 2016 *preliminary ** no exceptions City to file proposed 2016 special levies with DOR City Council Budget discussion — focus on DSF & CPF. County Auditor to mail parcel specific notices. City Council preview of Public Hearing. City conducts public hearing during this time frame. City of Andover Public hearing on 2016 Tax Levy and Budget. City Council adopts 2016 Levy and Operating Budget. Deadline for staff to certify tax levy to State and County. Finalize 2016 Actual Performance measures. Adopted budget printed and distributed. Publication of adopted budget information in newspaper. Department of Revenue budget form completed and submitted. Submit budget award application to GFOA. (Due 90 days after budget adoption.) 35 Table of Contents Responsibility City Council / Staff City Council / Staff County City Council / Staff City Council / Staff DOR City Council Finance City Council / Staff Finance / DOR City Council / Staff County City Council / Staff City Council City Council City Council Finance Finance Finance Finance Finance Table of Contents 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 three 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 36 Table of Contents 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. 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. 37 Table of Contents C. City Administrator's, 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. 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 38 Table of Contents 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: 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 (2016) against those projects planned between 2017 and 2020. 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. 39 Table of Contents 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. 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: 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 40 Table of Contents 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. 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, 2015. This is the fourteenth 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. 41 Table of Contents 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 IL Misc Rev Spec Assess Intergov'I Rev Invest. Income Tax Increments Charges for Svc Prop Taxes $0.00 $4.00 $8.00 $12.00 Millions 2016 Budget 02015 Est 02014 Actual 02013 Actual City of Andover 2016 Revenue by Source Misc Rev SpecAssess 7% 5% Intergov'I Rev 7% Invest. Income 1% Tax Increments 0% Charges for Svc 31% 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. 42 Revenue Projections — Property Tax & Charges for Services $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2010 Actual Table of Contents 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Est 2016 Budget —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 2016 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 4.01% as compared to 2015. 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 2016 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 and the rates increase to offset operations and provide for future infrastructure replacements. 43 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 Table of Contents 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Est 2016 Budget Tax Increments Intergovernmental Revenue Tax Increments Tax Increments are a revenue source in the Capital Projects Funds. 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. Current tax increment districts have pay-as-you-go notes associated with them and the net result is zero revenue. 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 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 2015 and 2016. 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 and then reinstated again in 2016 ($2,698) as notified by the State based on the new state formula. 44 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 Table of Contents 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Est 2016 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 within each fund. 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 so 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 2016 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 costs back to the property). 45 Table of Contents Revenue Projections — Miscellaneous Revenue $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Est 2016 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 2016 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 — This revenue source is found in the Capital Projects Funds. These charges are fees paid under development agreements when new construction for residential and commercial projects are initiated. They include park dedication fees, trail fees, water system trunk and sewer system trunk charges. In 2016, these fees are calculated on the assumption that there will be 20 new platted units and existing residential 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. 46 General Fund Revenues: $10,390,411 Expenditures: $10,697,788 eneral Government ublic Safety ublic Works r Fund Definitions Table of Contents CITY OF ANDOVER 2016 Budget Summary By Fund Type City of Andover - Budgeted Funds Total Revenues: $25,594,795 Total Expenditures: $27,770,288 Governmental Funds I I Proprietary Funds Special Revenue Funds Revenues: $1,562,200 Expenditures: $1,740,686 DA rainage & Mapping RRWMO orestry OW Mgmt / Utility onstruction Seal Coating ommunity Center DBG haritable Gambling Debt Service Funds Revenues: $2,479,273 Expenditures: $2,316,271 .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: $4,896,471 Expenditures: $6,935,077 Water Trunk Storm Sewer Sewer Trunk Road & Bridge Trail & Transportation Cap Equip Reserve Tax Increment Park Dedication PIR Projects Capital Notes / Bond Projects Enterprise Funds Revenues: $5,153,096 Expenditures: $4,912,499 ewer Fund later Fund torm Sewer Fund Internal Service Funds Revenues: $1,113,344 Expenditures: $1,167,967 entral 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. 47 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 Table of Contents CITY OF ANDOVER 2016 Budget Summary Revenues and Expenditures Fund Summary Actual Adopted Estimate Budget 2014 2015 2015 2016 $ 48,943,861 $ 36,034,488 $ 36,034,488 $ 35,972,807 10,123,308 1,680,359 2,819,054 9,561,080 5,032,111 1,214,368 30,430,280 79,374,141 9,881,410 1,480,542 19,513,350 6,524,098 4,662,377 1,277,876 43,339,653 $ 36,034,488 48 9,876,575 1,523,700 2,507,663 3,859,038 5,169,454 1,113, 344 24,049,774 60,084,262 10,338,730 1,710,874 2,285,820 4,393,745 4,832,158 1,138,752 24,700,079 $ 35,384,183 10,058,706 1,554,200 2,509,663 4,377,986 5,109,454 1,113, 344 24,723,353 60,757,841 10,375,695 1,703,689 2,286,865 4,479,080 4,772,748 1,166, 957 24,785,034 $ 35,972,807 10,390,411 1,562,200 2,479,273 4,896,471 5,153, 096 1,113, 344 25,594,795 61,567,602 10,697,788 1,740,686 2,316,271 6,935,077 4,912,499 1,167,967 27,770,288 $ 33,797,314 Table of Contents CITY OF ANDOVER 2016 Budget Summary Revenues and Expenditures - All Funds 49 Actual Budget Estimate Budget 2014 2015 2015 2016 Fund Balance/Net Assets, January 1 $ 48,943,861 $ 36,034,488 $ 36,034,488 $ 35,972,807 Revenues General Property Taxes 10,894,301 11,219,925 11,219,925 11,669,925 Tax Increments 377,733 20,000 3,000 - Special Assessments 733,425 412,000 450,573 1,153,000 Licenses and Permits 364,430 316,588 359,643 346,205 Intergovernmental 3,464,985 1,930,088 888,551 1,524,491 Charges for Services 7,623,294 7,432,899 7,458,339 7,463,994 Fines 94,375 100,750 100,750 100,750 Investment Income 863,046 268,500 307,200 300,400 User Charges 863,817 255,365 527,725 262,421 Meters 12,592 13,000 13,000 13,000 Permit Fees 3,425 3,500 3,500 3,500 Penalties 560 16,000 16,000 16,000 Miscellaneous 1,382,172 986,750 1,046,780 991,300 Total Revenues: 26,678,155 22,975,365 22,394,986 23,844,986 Other Financing Sources Operating Transfers In 1,255,572 1,074,409 1,075,679 1,169,809 Bond Proceeds 1,555,000 - - 580,000 Bond Premium 44,278 - - - Proceeds from Sale of Property 897,275 1,252,688 Total Other Financing Sources: 3,752,125 1,074,409 2,328,367 1,749,809 Total Revenues and Other Sources: 30,430,280 24,049,774 24,723,353 25,594,795 Total Available: 79,374,141 60,084,262 60,757,841 61,567,602 Expenditures Personal Services 6,068,234 6,287,300 6,288,643 6,527,733 Supplies and Materials 1,350,213 1,390,816 1,383,686 1,454,812 Purchased Services 4,016,684 4,229,296 4,292,724 4,486,980 Other Services and Charges 7,303,650 7,167,587 7,112,449 8,657,986 Capital Outlay 2,816,375 1,480,996 1,365,684 2,231,000 Debt Service 4,073,925 3,069,675 3,266,169 3,241,968 Total Operating Expenditures: 25,629,081 23,625,670 23,709,355 26,600,479 Other Uses Operating Transfers Out 1,255,572 1,074,409 1,075,679 1,169,809 Bond Discount - - - - Redemption of Refunded Bonds 16,455,000 Total Other Uses: 17,710,572 1,074,409 1,075,679 1,169,809 Total Expenditures and Other Uses: 43,339,653 24,700,079 24,785,034 27,770,288 Fund Balance/Net Assets, December 31 $ 36,034,488 $ 35,384,183 $ 35,972,807 $ 33,797,314 49 Table of Contents CITY OF ANDOVER 2016 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 $ 6,885,145 $ 457,915 $ 1,296,333 $ 19,829,703 $ 6,943,640 $ 560,071 $ 35,972,807 Revenues General Property Taxes 8,113,528 40,000 2,100,413 1,415,984 - - 11,669,925 Tax Increments - - - - - Special Assessments - 1,153,000 1,153,000 Licenses and Permits 346,205 - - 346,205 Intergovernmental 673,248 37,500 813,743 - - 1,524,491 Charges for Services 767,950 671,700 - 4,912,500 1,111,844 7,463,994 Fines 100,750 - - - - - 100,750 Investment Income 75,000 7,500 2,000 158,400 56,000 1,500 300,400 User Charges - - - 262,421 - - 262,421 Meters - 13,000 13,000 Permit Fees 3,500 3,500 Penalties - - - 16,000 16,000 Miscellaneous 116,800 805,500 - 2,000 67,000 991,300 Total Revenues: 10,193,481 1,562,200 2,102,413 3,805,548 5,068,000 1,113,344 23,844,986 Other Financing Sources Operating Transfers In 196,930 - 376,860 510,923 85,096 - 1,169,809 Bond Proceeds - - 580,000 - 580,000 Proceeds from Sale of Property - - - - - Total Other Financing Sources: 196,930 - 376,860 1,090,923 85,096 - 1,749,809 Total Revenues and Other Sources: 10,390,411 1,562,200 2,479,273 4,896,471 5,153,096 1,113,344 25,594,795 Total Available: 17,275,556 2,020,115 3,775,606 24,726,174 12,096,736 1,673,415 61,567,602 Expenditures Personal Services 4,623,992 483,086 - - 1,000,820 419,835 6,527,733 Supplies and Materials 692,032 85,570 - 289,200 388,010 1,454,812 Purchased Services 3,860,945 256,035 370,000 - - 4,486,980 Other Services and Charges 1,430,819 481,597 4,193,000 2,192,448 360,122 8,657,986 Capital Outlay 90,000 56,000 - 2,085,000 - - 2,231,000 Debt Service - - 2,212,148 196,719 833,101 3,241,968 Total Operating Expenditures: 10,697,788 1,362,288 2,212,148 6,844,719 4,315,569 1,167,967 26,600,479 Other Uses Operating Transfers Out - 378,398 104,123 90,358 596,930 - 1,169,809 Bond Discount - - - - - Redemption of Refunded Bonds - - - - - Total Other Uses: - 378,398 104,123 90,358 596,930 - 1,169,809 Total Expenditures and Other Uses: 10,697,788 1,740,686 2,316,271 6,935,077 4,912,499 1,167,967 27,770,288 Fund Balance/Net Assets, December 31 $ 6,577,768 $ 279,429 $ 1,459,335 $ 17,791,097 $ 7,184,237 $ 505,448 $ 33,797,314 50 Table of Contents CITY OF ANDOVER Revenue Comparison - General Fund City of Andover 2016 Revenue Comparison - General Fund Property Taxes Licenses & Permits Intergov] Rev Charges for Svcs Fines & Forfeits Interest Income Misc. Rev Transfers -$1.00 $1.00 $3.00 $5.00 $7.00 $9.00 Millions Mudpt 2016 Estimate 2015 OA -d 2014 A -d 2013 -Actua12.11 51 Property Taxes 78% Qi 1 City of Andover 2016 Revenue by Source - General Fund Misc. Rev 1% Interest Income Transfers 1 2% % `Fines & Forfeits / 1% Charges for Svcs 7% Intergov] Rev 7% Licenses & Permits 3% Actual Actual Actual Budget Estimate Budget 2012 2013 2014 2015 2015 2016 REVENUES Property Taxes $ 7,340,532 $ 7,376,284 $ 7,476,295 $ 7,706,892 $ 7,706,892 $ 8,113,528 License and Permits 449,826 536,707 364,430 316,588 359,643 346,205 Intergovernmental Revenues 653,720 710,071 697,491 633,015 704,781 673,248 Charges for Services 973,604 1,122,460 998,150 748,550 785,090 767,950 Fines and Forfeits 97,571 96,130 94,375 100,750 100,750 100,750 Interest Income 95,365 (17,096) 144,876 75,000 75,000 75,000 Miscellaneous Revenue 149,857 140,983 150,759 98,850 129,620 116,800 Transfers 196,930 196,930 196,930 196,930 196,930 196,930 TOTAL REVENUES $ 9,957,405 $ 10,162,469 $ 10,123,306 $ 9,876,575 $ 10,058,706 $ 10,390,411 City of Andover 2016 Revenue Comparison - General Fund Property Taxes Licenses & Permits Intergov] Rev Charges for Svcs Fines & Forfeits Interest Income Misc. Rev Transfers -$1.00 $1.00 $3.00 $5.00 $7.00 $9.00 Millions Mudpt 2016 Estimate 2015 OA -d 2014 A -d 2013 -Actua12.11 51 Property Taxes 78% Qi 1 City of Andover 2016 Revenue by Source - General Fund Misc. Rev 1% Interest Income Transfers 1 2% % `Fines & Forfeits / 1% Charges for Svcs 7% Intergov] Rev 7% Licenses & Permits 3% Table of Contents CITY OF ANDOVER Expenditure Comparison - General Fund General Gov't Public Safety Public Works City of Andover 2016 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 GBudget 2016 ■Estimate 2015 GA -12014 .Actual 2013 A-12012 52 City of Andover 2016 Expenditures by Function - General Fund Other 1% General Go 26 Public Safety 44 iblic Works 29 Actual Actual Actual Budget Estimate Budget 2012 2013 2014 2015 2015 2016 EXPENDITURES General Government $ 2,223,773 24% $ 2,308,882 24% $ 2,481,927 25% $ 2,734,639 26% $ 2,701,604 26% $ 2,828,272 26% Public Safety 4,087,065 43% 4,311,340 45% 4,498,920 46% 4,572,938 44% 4,607,938 44% 4,694,001 44% Public Works 2,482,490 26% 2,759,342 29% 2,819,372 29% 2,960,825 29% 2,995,825 29% 3,105,187 29% Other 663,372 7% 210,510 2% 81,185 1% 70,328 1% 70,328 1% 70,328 1% TOTAL EXPENDITURES $ 9,456,700 $ 9,590,074 $ 9,881,404 $ 10,338,730 $ 10,375,695 $ 10,697,788 General Gov't Public Safety Public Works City of Andover 2016 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 GBudget 2016 ■Estimate 2015 GA -12014 .Actual 2013 A-12012 52 City of Andover 2016 Expenditures by Function - General Fund Other 1% General Go 26 Public Safety 44 iblic Works 29 Table of Contents CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2016 53 Actual Actual Actual Actual Actual Budget* Estimate Requested* Change(*) 2010 2011 2012 2013 2014 2015 2015 2016 $ % GENERAL GOVERNMENT Mayor and Council $ 100,711 $ 101,373 $ 83,622 $ 83,595 $ 84,650 $ 87,154 $ 87,154 $ 88,780 1,626 1.87% Administration 131,217 135,523 140,048 147,503 169,218 180,888 180,888 192,778 11,890 6.57% Newsletter 17,094 22,897 22,336 17,677 20,974 26,000 26,000 26,000 0 0.00% Human Resources 54,970 31,855 12,485 17,907 18,038 40,156 40,156 35,260 (4,896) -12.19% Attorney 172,775 171,062 170,930 173,244 177,427 182,000 182,000 187,640 5,640 3.10% City Clerk 95,165 100,697 101,377 108,312 128,861 135,359 135,359 157,075 21,716 16.04% Elections 37,926 6,399 39,614 11,352 41,508 57,492 17,492 57,919 427 0.74% Finance 194,863 207,032 207,337 215,215 230,639 239,981 238,731 261,016 21,035 8.77% Assessing 144,760 143,693 143,338 144,561 145,051 150,000 147,000 150,000 0 0.00% Information Services 136,931 142,964 136,025 135,982 146,984 172,239 172,239 173,483 1,244 0.72% Planning & Zoning 327,567 324,303 318,523 349,489 387,308 412,937 412,937 435,606 22,669 5.49% Engineering 389,038 413,818 427,339 452,788 460,872 470,631 468,831 509,514 38,883 8.26% Facility Management 421,855 469,478 420,799 451,257 470,397 579,802 592,817 553,201 (26,601) -4.59% Total General Gov 2,271,094 2,223,773 2,481,927 2,734,639 2,701,604 2,828,272 93,633 3.42 PUBLIC SAFETY Police Protection 2,599,246 2,615,407 2,693,896 2,740,899 2,818,132 2,918,308 2,918,308 2,936,467 18,159 0.62% Fire Protection 967,715 974,988 1,015,825 1,126,979 1,264,018 1,192,330 1,227,330 1,284,795 92,465 7.75% Protective Inspection 330,707 342,437 354,753 423,495 390,908 423,161 423,161 441,807 18,646 4.41% Emergency Management 15,451 16,301 14,088 13,930 21,836 29,189 29,189 22,982 (6,207) -21.26% Animal Control 6,952 11,088 8,503 6,037 4,026 9,950 9,950 7,950 (2,000) -20.10% Total Public Safety 3,920,071 3,960,221 4,087,065 4,311,340 4,498,920 4,572,938 4,607,938 4,694,001 121,063 2.65% PUBLIC WORKS Streets and Highways 518,990 594,294 570,630 572,753 600,313 625,664 625,664 650,237 24,573 3.93% Snow and Ice Removal 537,947 434,603 420,175 630,799 637,154 539,770 539,770 563,587 23,817 4.41% Street Signs 166,244 175,833 170,200 162,861 187,935 203,533 203,533 204,193 660 0.32% Traffic Signals 25,830 26,569 27,457 26,241 34,901 35,000 35,000 35,000 0 0.00% Street Lighting 30,885 32,317 33,439 31,702 32,646 36,400 36,400 36,400 0 0.00% StreetLights- Billed 186,320 189,144 195,197 210,331 203,148 216,000 216,000 217,500 1,500 0.69% Park & Recreation 827,911 889,180 912,750 946,545 1,009,373 1,169,338 1,169,338 1,257,247 87,909 7.52% Natural Resource Preservatioi - - - - - - - 10,096 10,096 #DIV/01 Recycling 109,035 109,910 152,642 178,110 113,902 135,120 170,120 130,927 (4,193) -3.10% Total Public Works 2,403,162 2,451,850 2,482,490 2,759,342 2,819,372 2,960,825 2,995,825 3,105,187 144,362 4.88% OTHER 24,953 30,631 663,372 210,510 81,185 70,328 70,328 70,328 0 0.00% Total Other 24,953 30,631 663,372 210,510 81,185 70,328 70,328 70,328 0 0.00% GRAND TOTAL $ $ 10,697,788 359,058 8,573,058 $ 8,713,796 $ 9,456,700 $ 9,590,074 $ 9,881,404 $ 10,338,730 $ 10,375,695 3.47% 53 CITY OF ANDOVER 2016 FTE Summary 2013 2014 Special Revenue Funds Table of Contents 2015 2016 Current Budget LRRWMO 2013 2014 2015 2016 EDA General Actual Actual Current Budget General Fund 3.10 3.10 3.10 3.16 General Government 0.20 0.20 0.20 0.08 Administration 1.15 1.05 1.05 1.10 Human Resources 0.02 0.03 0.03 0.03 City Clerk 1.34 1.84 1.84 1.89 Elections 0.10 0.10 0.10 0.10 Financial Adminstration 1.85 1.91 1.91 1.96 Information Systems 0.91 0.91 0.91 0.91 Planning & Zoning 3.70 3.90 3.90 4.00 Engineering 4.33 4.20 4.20 4.40 Facility Management 0.22 0.22 0.22 0.16 Total General Government 13.62 14.16 14.16 14.55 Public Safety Grand Total 56.00 56.00 57.50 Fire Protection 3.10 3.10 3.10 3.10 Protective Inspection 3.93 3.93 3.93 3.93 Emergency Management 0.05 0.05 0.05 0.05 Total Public Safety 7.08 7.08 7.08 7.08 Public Works Streets & Highways 4.97 4.88 5.20 5.05 Snow & Ice 3.44 3.95 2.65 2.65 Street Signs 1.34 1.30 1.41 1.41 Parks & Recreation 7.14 7.33 8.51 8.48 Natural Resource Preservation - - - 0.03 Recycling 0.77 0.76 1.23 1.23 Total Public Works 17.66 18.22 19.00 18.85 Total General Fund 38.36 39.46 40.24 40.48 2013 2014 Special Revenue Funds Table of Contents 2015 2016 Current Budget LRRWMO 0.20 0.15 0.15 0.07 EDA General 0.85 0.35 0.35 0.10 Community Center 3.10 3.10 3.10 3.16 ROW Mgmt / Utility 0.20 0.20 0.20 0.08 4.35 3.80 3.80 3.41 Enterprise Funds Water 4.56 4.52 4.63 4.63 Sewer 3.49 3.06 3.38 3.38 Storm Sewers 2.23 2.25 2.45 2.45 10.28 9.83 10.46 10.46 Internal Service Funds Central Equipment 2.91 2.81 2.90 3.05 Risk Mgmt 0.10 0.10 0.10 0.10 3.01 2.91 3.00 3.15 Grand Total 56.00 56.00 57.50 57.50 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2013 & 2014 are based on actual hours charged to various departments. 54 Building Replacement - Small Extended Cab Pick Up #9 Community Center Replacement - Rink Flooring Engineering New Development Projects Pedestrian Trail Maintenance New Pedestrian Trail and Sidewalk Segments Pedestrian Trail Reconstruction Facility Management Annual Parking Lot Maintenance PW / Comm Ctr Master Planning Fire Replacement - Turnout Gear Replacement - SCBA's Replacement - Fire Marshal Vehicle Replacement - 800 MHz radios Replacement - Breathing Air Compressor Information Technology New Server addition / replacement Table of Contents CITY OF ANDOVER 2016 Capital Improvement Plan Projects By Department - Use of Funds Park & Recreation - Operations $ 30,000 Replace/Repair Play Structures - Various Parks 50,000 Replace/Repair Major Park Projects - Various Parks 25,000 Replacement - Toro Groundmaster #559 45,000 36,000 Replacement - Toro Groundmaster #585 110,000 Replacement - Toro Groundmaster 4000D #583 70,000 $ 300,000 150,000 45,000 Park & Recreation - Projects 230,000 Annual Miscellaneous Projects 50,000 Timber Trails Park - Renovation 475,000 Terrace Park Irrigation and Water Service Sunshine Park Scoreboard Wiring and Design 50,000 25,000 Storm Sewer 75,000 Storm Sewer Improvements 55 Water Rehabilitation of Wells Grand Total $ 15,000 200,000 35,000 23,000 273,000 50,000 460,000 230,000 40,000 50,000 2,600,000 693,000 15,000 200,000 4,288,000 50,000 $ 6,021,000 Streets / Highways 19,000 Annual Street Seal Coat Project 250,000 Annual Street Crack Seal Project 40,000 Annual Pavement Markings 35,000 Annual Curb Replacement 80,000 Municipal State Aid Routes / New & Reconstruct 424,000 Annual Street Reconstruction Gravel Road Improvement Replacement - Dump Truck w/ Snow Removal #196 20,000 55 Water Rehabilitation of Wells Grand Total $ 15,000 200,000 35,000 23,000 273,000 50,000 460,000 230,000 40,000 50,000 2,600,000 693,000 15,000 200,000 4,288,000 50,000 $ 6,021,000 Assessments Capital Equipment Reserve Community Center Operations Construction Seal Coating Fund Equipment Bond General Fund Municipal State Aid Fund Park Improvement Fund Road & Bridge Fund Sewer Trunk Fund Storm Sewer Fund Trail Fund Water Fund Water Trunk Fund CITY OF ANDOVER 2016 Capital Improvement Plan Sources of Funds 56 $ 1,053,000 360,000 56,000 5,000 575,000 94,000 1,750,000 273,000 1,375,000 110,000 50,000 230,000 50,000 40,000 Total $ 6,021,000 Table of Contents CITY OF ANDOVER, MINNESOTA 2016 ANNUAL BUDGET GENERAL FUND DEFINITION: Table of Contents 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. 57 Table of Contents This page left blank intentionally. 58 Table of Contents City of Andover 2016 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 $ 6,960,236 $ 7,202,134 $ 7,202,134 $ 6,885,145 7,476,294 364,430 697,492 998,510 94,375 144,876 150,401 9,926,378 196,930 10,123,308 17,083,544 4,285,309 656,818 3,688,262 1,243,707 7,314 9,881,410 Total Expenditures and Other Uses: 9,881,410 Fund Balance, December 31 $ 7,202,134 Change in Fund Balance $ 241,898 3% 7,706,892 316,588 633,015 748,550 100,750 75,000 98.850 9,679,645 196,930 9,876,575 17,078,709 4,416,919 651,296 3,817,821 1,452,694 10,338,730 10,338,730 $ 6,739,979 $ (462,155) -6% 59 7,706,892 359,643 704,781 785,090 100,750 75,000 129.620 9,861,776 196,930 10,058,706 17,260,840 4,397,979 638,101 3,852,621 1,451,994 35,000 10,375,695 10,375,695 $ 6,885,145 $ (316,989) -4% 8,113,528 346,205 673,248 767,950 100,750 75,000 116.800 10,193,481 196,930 10,390,411 17,275,556 4,623,992 692,032 3,860,945 1,430,819 90,000 10,697,788 10,697,788 $ 6,577,768 $ (307,377) -4% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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 $ 6,960,236 $ 7,202,134 $ 7,202,134 $ 6,885,145 7,476,294 364,430 697,492 998,510 94,375 144,876 150,401 9,926,378 196,930 10,123,308 17,083,544 4,285,309 656,818 3,688,262 1,243,707 7,314 9,881,410 Total Expenditures and Other Uses: 9,881,410 Fund Balance, December 31 $ 7,202,134 Change in Fund Balance $ 241,898 3% 7,706,892 316,588 633,015 748,550 100,750 75,000 98.850 9,679,645 196,930 9,876,575 17,078,709 4,416,919 651,296 3,817,821 1,452,694 10,338,730 10,338,730 $ 6,739,979 $ (462,155) -6% 59 7,706,892 359,643 704,781 785,090 100,750 75,000 129.620 9,861,776 196,930 10,058,706 17,260,840 4,397,979 638,101 3,852,621 1,451,994 35,000 10,375,695 10,375,695 $ 6,885,145 $ (316,989) -4% 8,113,528 346,205 673,248 767,950 100,750 75,000 116.800 10,193,481 196,930 10,390,411 17,275,556 4,623,992 692,032 3,860,945 1,430,819 90,000 10,697,788 10,697,788 $ 6,577,768 $ (307,377) -4% 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 2015 and Budget 2016. Table of Contents Department: Mayor & Council Director/Manager: City Council Actual Current Budgeted Performance Measures 2014 2015 2016 Council Meetings 23 24 24 Special Workshops 11 19 15 Aqenda Items 334 479 450 Table of Contents Department: Mayor & Council Director/Manager: City Council Service Expenditures By Catewv Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 60 V Current Budgeted 2015 2016 Current 2015 Actual Staffing Levels 2014 One Mayor and Four Council Members 2,779 Actual Service Expenditures 2014 Personal Services $ 43,979 Supplies & Materials 30,162 Other Services / Charges 2,494 Purchased Services 8,015 TOTAL 84,650 Service Expenditures By Catewv Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 60 V Current Budgeted 2015 2016 Current 2015 Budgeted 2016 $ 43,799 $ 43,799 30,076 31,702 2,779 2,779 10,500 10,500 87,154 88,780 .Personal Services 0Supplies 8 Materials oother services / charges OPurchasea services Actual Current 2014 2015 31,874 32,050 0.22 $ 0.23 2.66 $ 2.72 Budgeted 2016 32,230 $ 0.23 $ 2.75 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 2016 reflects changes salary and benefits and fte allocations. Staffing Levels FTE Equivalents Table of Contents Department: Administration Director/Manager: City Administrator Actual Current 2014 2015 1.05 1.05 Actual Current Budgeted Performance Measures 2014 2015 2016 Regular Council Agenda Items 334 479 450 Council Workshops Attended 11 19 15 Council Meetings Attended 23 23 24 Staff Meetings Held 52 52 52 Staffing Levels FTE Equivalents Table of Contents Department: Administration Director/Manager: City Administrator Actual Current 2014 2015 1.05 1.05 Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.44 Annual $ 5.31 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 61 Current 2015 $ 154,170 8,500 17,218 1,000 180,888 Budgeted 2016 1.10 Budgeted 2016 $ 166,110 9,450 17,218 192,778 OPersonal Services Supplies 8 Materials OOther Services / Charges OPurchased Services Current 2015 32,050 $ 0.47 $ 5.64 Budgeted 2016 32,230 $ 0.50 $ 5.98 Actual Service Expenditures 2014 Personal Services $ 145,893 Supplies & Materials 6,905 Other Services / Charges 16,345 Purchased Services 75 TOTAL 169,218 Service Expenditures By Category Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.44 Annual $ 5.31 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 61 Current 2015 $ 154,170 8,500 17,218 1,000 180,888 Budgeted 2016 1.10 Budgeted 2016 $ 166,110 9,450 17,218 192,778 OPersonal Services Supplies 8 Materials OOther Services / Charges OPurchased Services Current 2015 32,050 $ 0.47 $ 5.64 Budgeted 2016 32,230 $ 0.50 $ 5.98 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 are increasing slightly. The current budget continues to be sufficient to cover these changes. Department: Director/Manager: Table of Contents Newsletter Newsletter Coordinator Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Actual Current Budgeted Performance Measures 2014 2015 2016 Number of Meetings Held 6 6 6 Newsletters Published 6 6 6 Public Circulation 12,720 12,750 12,820 Staff Preparation Hours 90 90 90 Department: Director/Manager: Table of Contents Newsletter Newsletter Coordinator Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.05 Annual $ 0.66 -------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 62 OPersonal Services ■Supplies 8 Materials OOther Services / Charges OPurchased Services Current Budgeted Inil; Inca oz,uou oz,zou $ 0.07 $ 0.07 $ 0.81 $ 0.81 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials 10,120 14,000 14,000 Other Services / Charges - - - Purchased Services 10,854 12,000 12,000 TOTAL 20,974 26,000 26,000 Service Expenditures By Category Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.05 Annual $ 0.66 -------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 62 OPersonal Services ■Supplies 8 Materials OOther Services / Charges OPurchased Services Current Budgeted Inil; Inca oz,uou oz,zou $ 0.07 $ 0.07 $ 0.81 $ 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. New ACA requirements will also increase benefits administration. 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 Actual The Human Resources Manager is allocated out to various departments based on FTE's. Budget 2016 includes funding for any market rate adjustments that are approved by Staffing Levels the City Council. As more employees become eligible for retirement, an increase in 2015 recruitment is expected. FTE Equivalents Actual Current Budgeted Performance Measures 2014 2015 2016 Number of applications reviewed 200 216 400 Number of training hours 50 50 50 Hours spent on labor relations 20 100 20 Hours spent on benefit administration 30 50 100 Emolovees hired (Seasonal/FT/PT) 50 50 50 Department: Director/Manager: Table of Contents Human Resources Human Resources Manager Service Expenditures By Catew — y ®Personal Services ■Supplies 8 Materials OOther Services/ Charges OPurchased Services Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents 0.03 0.03 0.03 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 5,528 $ 4,406 $ 4,510 Supplies & Materials 3,820 3,900 3,900 Other Services / Charges 3,924 4,100 4,100 Purchased Services 4,766 27,750 22,750 TOTAL 18,038 40,156 35,260 Service Expenditures By Catew — y ®Personal Services ■Supplies 8 Materials OOther Services/ Charges OPurchased Services ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 63 Current Budgeted 2015 2016 32,050 32,230 $ 0.10 $ 0.09 $ 1.25 $ 1.09 Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.05 Annual $ 0.57 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 63 Current Budgeted 2015 2016 32,050 32,230 $ 0.10 $ 0.09 $ 1.25 $ 1.09 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 (3%) planned for Budget 2016. Table of Contents Department: Attorney Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 64 Actual ')n1n .51,011+ $ 0.46 $ 5.57 G Personal Services ■Supplies & Materials DOther Services / Charges G Purchased Services Current 2015 32,050 $ 0.47 $ 5.68 Budgeted 1n1a .5L,L.5U $ 0.49 $ 5.82 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 177,427 182,000 187,640 TOTAL 177,427 182,000 187,640 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 64 Actual ')n1n .51,011+ $ 0.46 $ 5.57 G Personal Services ■Supplies & Materials DOther Services / Charges G Purchased Services Current 2015 32,050 $ 0.47 $ 5.68 Budgeted 1n1a .5L,L.5U $ 0.49 $ 5.82 Table of Contents 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 2016, the increase is due to a COLA and an increase in the cost of health benefits. Actual Current Budgeted Performance Measures 2014 2015 2016 Council packets assembled & distributed 350 384 260 Licenses Issued 70 71 70 Service Expenditures By Catego Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 65 Actual $ 0.34 $ 4.04 ■Personal Servics Supplies 8 Mateerials OOther Services / Charges OPurchased Services Current Budgeted $ 0.35 $ 0.41 $ 4.22 $ 4.87 Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents 1.84 1.84 1.89 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 101,318 $ 105,972 $ 127,688 Supplies & Materials 1,734 2,110 2,110 Other Services / Charges 25,768 27,077 27,077 Purchased Services 41 200 200 TOTAL 128,861 135,359 157,075 Service Expenditures By Catego Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 65 Actual $ 0.34 $ 4.04 ■Personal Servics Supplies 8 Mateerials OOther Services / Charges OPurchased Services Current Budgeted $ 0.35 $ 0.41 $ 4.22 $ 4.87 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 2016 is an election years and includes all the fees associated with operating 10 precincts. Table of Contents Department: Elections Director/Manager: City Clerk Actual Current Budgeted Performance Measures 2014 2015 2016 Total number of voters 12,052 Non election 12,000 Number of Precincts 10 year 10 Registered voters 19,772 Supplies & Materials 19,000 Table of Contents Department: Elections Director/Manager: City Clerk Service Expenditures By Catewry Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.11 Annual $ 1.30 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 66 Budgeted onia Budgeted 2016 $ 48,319 2,000 7,600 57,919 ■ Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted 2015 2016 32,050 32,230 $ 0.05 $ 0.15 $ 0.55 $ 1.80 Actual Current Staffing Levels 2014 2015 FTE Equivalents 0.10 0.10 Actual Current Service Expenditures 2014 2015 Personal Services $ 35,735 $ 7,942 Supplies & Materials 137 2,000 Other Services / Charges - - Purchased Services 5,636 7,550 TOTAL 41,508 17,492 Service Expenditures By Catewry Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.11 Annual $ 1.30 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 66 Budgeted onia Budgeted 2016 $ 48,319 2,000 7,600 57,919 ■ Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted 2015 2016 32,050 32,230 $ 0.05 $ 0.15 $ 0.55 $ 1.80 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 2016 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 2014 3,314 Current 2015 2,933 Budgeted 2016 3,000 Payroll checks issued 398 147 200 Payroll checks - direct deposit 2,559 2,125 2,200 Number of delinquent accounts 570 630 650 Utility accounts - Storm Water 10,344 10,418 10,488 Utility accounts - Water 6,412 6,481 6,596 Utility accounts - Sewer 7,288 7,353 7,418 Utilitv accounts - Street Liahts 6.975 7.157 7.186 Department: Director/Manager: Actual Staffing Levels 2014 FTE Equivalents 1.91 Service Expenditures By Category Table of Contents Financial Administration Finance Director Current 2015 1.91 Current 2015 $ 187,935 6,150 19,446 25,200 238,731 Budgeted 2016 1.96 Budgeted 2016 $ 206,970 6,900 20,896 26,250 261,016 OPersonal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Service Expenditures 2014 Personal Services $ 182,820 Supplies & Materials 6,177 Other Services / Charges 18,542 Purchased Services 23,100 TOTAL 230,639 Service Expenditures By Category Table of Contents Financial Administration Finance Director Current 2015 1.91 Current 2015 $ 187,935 6,150 19,446 25,200 238,731 Budgeted 2016 1.96 Budgeted 2016 $ 206,970 6,900 20,896 26,250 261,016 OPersonal Services ■Supplies & Materials OOther Services / Charges OPurchased Services -------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 67 Actual Current Budgeted Expenditures Per Capita 2014 2015 2016 Population - Estimates 31,874 32,050 32,230 Monthly $ 0.60 $ 0.62 $ 0.67 Annual $ 7.24 $ 7.45 $ 8.10 -------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 67 Table of Contents Fund: 0101 -General Department: Assessing Cost Center: 41410 Director/Manager: Finance Director Activitv Description Actual Current Budgeted This department is responsible for assessment for all real and personal property for Staffing Levels 2014 2015 2016 valuation purposes. The City contracts with Anoka County for this service. FTE Equivalents N/A N/A N/A 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 2016 includes a slight increase in the contract with Anoka County for assessing services. Performance Measures Residential Parcels Assessed Commercial Parcels Assessed Actual Current Budgeted 130 Apartments Assessed 21 Unimproved Parcels Assessed 604 ■Personal services •` _ :supplies 8 Materials Domer services / charges OP—hased services 132 135 Expenditures Per Capita 21 21 Population - Estimates 694 700 Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 68 Actual $ 0.38 $ 4.55 Current 2015 32,050 $ 0.38 $ 4.59 Budgeted $ 0.39 $ 4.65 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 145,051 147,000 150,000 TOTAL 145,051 147,000 150,000 Service Expenditures By Category ■Personal services •` _ :supplies 8 Materials Domer services / charges OP—hased services 132 135 Expenditures Per Capita 21 21 Population - Estimates 694 700 Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 68 Actual $ 0.38 $ 4.55 Current 2015 32,050 $ 0.38 $ 4.59 Budgeted $ 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 2016. Performance Measures Number of PC's / Servers Actual Current Budgeted 2014 2015 2016 74 74 75 Number of Printers 28 28 28 Number of Phones Maintained 73 75 75 Table of Contents Department: Information Systems Director/Manager: City Administrator Actual Staffing Levels 2014 FTE Equivalents 0.91 Service Expenditures By Category Current 2015 0.91 Current 2015 $ 99,254 41,535 29,450 2,000 172,239 Budgeted 2016 0.91 Budgeted 2016 $ 104,798 36,535 30,150 2,000 173,483 OPersonal Services S _ ■Supplies & Materials r OOther Services / Charges OPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 69 Actual 2014 31,874 $ 0.38 $ 4.61 Current 2015 32,050 $ 0.45 $ 5.37 Budgeted 2016 32,230 $ 0.45 $ 5.38 Actual Service Expenditures 2014 Personal Services $ 94,399 Supplies & Materials 32,854 Other Services / Charges 17,856 Purchased Services 1,875 TOTAL 146,984 Service Expenditures By Category Current 2015 0.91 Current 2015 $ 99,254 41,535 29,450 2,000 172,239 Budgeted 2016 0.91 Budgeted 2016 $ 104,798 36,535 30,150 2,000 173,483 OPersonal Services S _ ■Supplies & Materials r OOther Services / Charges OPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 69 Actual 2014 31,874 $ 0.38 $ 4.61 Current 2015 32,050 $ 0.45 $ 5.37 Budgeted 2016 32,230 $ 0.45 $ 5.38 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 2016 Personal Services change is largely due to a COLA, an increase in health benefits, a step increase for a newly hired employee and staff reallocations. Performance Measures Subdivisions Processed Actual 2014 7 Current 2015 6 Budgeted 2016 2 Commercial Site Plans Processed 1 4 2 Conditional Use Permits 4 6 3 Code Amendments 2 2 2 Comp Plan Amendments 0 3 1 Rezonings 4 3 1 Variances 1 1 1 Lot Splits 0 1 1 P&Z Agendas 9 13 12 Vac of Easements 7 8 5 IUP - Interim Use Permit 3 5 2 RLS - Registered Land Survey 2 0 1 Table of Contents Department: Planning and Zoning Director/Manager: Community Development Director Service Expenditures By Categor OPersonal Services ■Supplies & Materials OOther Services / Charges �"'"•..,,,,` OPurchased Services Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents 3.90 3.90 4.00 Monthly Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 367,566 $ 393,176 $ 415,095 Supplies & Materials 5,950 5,700 5,900 Other Services / Charges 7,371 7,711 7,711 Purchased Services 6,421 6,350 6,900 TOTAL 387,308 412,937 435,606 Service Expenditures By Categor OPersonal Services ■Supplies & Materials OOther Services / Charges �"'"•..,,,,` OPurchased Services ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 70 Actual Current Budgeted Expenditures Per Capita 2014 2015 2016 Population - Estimates 31,874 32,050 32,230 Monthly $ 1.01 $ 1.07 $ 1.13 Annual $ 12.15 $ 12.88 $ 13.52 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 70 Table of Contents 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 Budget 2016 Personal Services change is largely due to a COLA, a cost increase in health benefits and reallocation of staffing. Actual Current Staffing Levels 2014 2015 FTE Equivalents 4.20 4.20 Actual Current Budgeted Performance Measures 2014 2015 2016 1. Number of Projects Constructed 16 11 12 2. Number of Projects Reviewed: 460,872 Service Expenditures By Category Prelimary Plats 8 5 2 Commercial Site Plans 1 3 2 3. Number of Utilitv oermits issued 63 67 60 Actual Current Staffing Levels 2014 2015 FTE Equivalents 4.20 4.20 Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 1.20 Annual $ 14.46 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 71 Current �fl�A G 17,600 23,683 2,300 468,831 Budgeted 2016 4.40 Budgeted 2016 $ 464,556 18,500 24,158 2,300 509,514 ■ Personal Services ■Supplies & Materials GOther Services / Charges OPurchased Services Current Actual Service Expenditures 2014 Personal Services $ 424,973 Supplies & Materials 13,966 Other Services / Charges 21,795 Purchased Services 138 TOTAL 460,872 Service Expenditures By Category Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 1.20 Annual $ 14.46 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 71 Current �fl�A G 17,600 23,683 2,300 468,831 Budgeted 2016 4.40 Budgeted 2016 $ 464,556 18,500 24,158 2,300 509,514 ■ Personal Services ■Supplies & Materials GOther Services / Charges OPurchased Services Current Budgeted 2015 2016 32,050 32,230 $ 1.22 $ 1.32 $ 14.63 ------------------ $ 15.81 Table of Contents 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. Current 2015 included major hvac balancing and repairs at the public works building. Budget 2016 eliminates the operation of one of the concession area ran during the summer months. Actual Current Budgeted Performance Measures 2014 2015 2016 Buildings 17 18 18 Parking Lots 14 14 14 Service Expenditures By Category OPersonal Services ■Supplies 8 Materials ` OOther Services / Charges OPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 72 Actual $ 1.23 $ 14.76 Current 2015 32,050 $ 1.54 $ 18.50 Budgeted $ 1.43 $ 17.16 Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents 0.22 0.22 0.16 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 24,888 $ 19,750 $ 22,364 Supplies & Materials 54,511 68,555 71,000 Other Services / Charges 227,664 318,377 302,477 Purchased Services 163,334 186,135 157,360 TOTAL 470,397 592,817 553,201 Service Expenditures By Category OPersonal Services ■Supplies 8 Materials ` OOther Services / Charges OPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 72 Actual $ 1.23 $ 14.76 Current 2015 32,050 $ 1.54 $ 18.50 Budgeted $ 1.43 $ 17.16 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 2016 includes minimal contract increase with no change in service. Performance Measures Actual 2014 Current 2015 Budgeted 2016 Number of Part I & II Offenses 1,601 1,374 1,400 Number of Calls for Services 10,319 10,400 10,500 Number of Traffic Citations 2,536 2,016 2,100 Number of Patrol Hours 29,200 29,200 29,200 Staff Meetings Attended 50 50 50 Number of School Liaison Hours 4,160 4,160 4,160 Table of Contents Department: Police Protection Director/Manager: City Administrator Service Expenditures By Categor Ir r —�— h„ � Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 2,818,132 2,918,308 2,936,467 TOTAL 2,818,132 2,918,308 2,936,467 Service Expenditures By Categor Ir r —�— h„ � ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 73 ■ Personal Services ■Supplies 8 Materials OOther Services / Charges O P—hased Services Current 2015 32,050 $ 7.59 $ 91.05 Budgeted 2016 32,230 $ 7.59 $ 91.11 Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 7.37 Annual $ 88.41 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 73 ■ Personal Services ■Supplies 8 Materials OOther Services / Charges O P—hased Services Current 2015 32,050 $ 7.59 $ 91.05 Budgeted 2016 32,230 $ 7.59 $ 91.11 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 Actual 2014 Personal Services includes the payout of accrued time to an employee who retired mid -year. Budget 2016 includes the purchase of turnout gear ($19k) and an increase is State Fire Aid that is passed thru to the Relief Association ($35k). Performance Measures Fire Responses Actual 2014 257 Current 2015 262 Budgeted 2016 260 Emergency Medical Responses 838 336 350 Fire Inspections 132 34 35 Fire Investigations 9 14 14 Public Fire Education (hours) 567 369 370 Customer Contacts 3,800 3,000 3,000 Total Firefiahter Trainina Hours 3.760 4.283 4.300 Department: Director/Manager: Table of Contents Fire Protection Fire Chief Service Expenditures By Cate2or OPersonal Services ■Supplies & Materials OOther Services / Charges w OPurchased Services Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents 3.10 3.10 3.10 Monthly Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 909,222 $ 886,840 $ 913,555 Supplies & Materials 132,014 93,250 114,850 Other Services / Charges 207,634 219,640 224,140 Purchased Services 15,148 27,600 32,250 TOTAL 1,264,018 1,227,330 1,284, 795 Service Expenditures By Cate2or OPersonal Services ■Supplies & Materials OOther Services / Charges w OPurchased Services ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 74 Actual Current Budgeted Expenditures Per Capita 2014 2015 2016 Population - Estimates 31,874 32,050 32,230 Monthly $ 3.30 $ 3.19 $ 3.32 Annual $ 39.66 $ 38.29 $ 39.86 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 74 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 Online permits have been a notable success in 2015 with more than 12% of all permits being process online and saving both the City and permit applicants time and money. Note also that the fluctuation in Purchased Services is for the electrical inspector whose fees are based on the electrical permits pulled and inspected. Performance Measures Townhomes Actual 2014 0 Current 2015 0 Budgeted 2016 8 Single Family 52 74 75 Miscellaneous Building Permits 431 498 500 Other Permits 1,898 2,744 2,700 Inspections 2,840 3,100 3,200 Contractor Licenses 114 112 115 Online Permits 0 391 425 Table of Contents Department: Protective Inspection Director/Manager: Building Official Actual Staffing Levels 2014 FTE Equivalents 3.93 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 75 Current 2015 3.93 Current 2015 $ 350,338 16,300 24,723 31,800 423,161 Budgeted 2016 3.93 Budgeted 2016 $ 361,434 18,250 25,323 36,800 441,807 OPersonal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Actual Service Expenditures 2014 Personal Services $ 324,029 Supplies & Materials 9,186 Other Services / Charges 22,738 Purchased Services 34,955 TOTAL 390,908 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 75 Current 2015 3.93 Current 2015 $ 350,338 16,300 24,723 31,800 423,161 Budgeted 2016 3.93 Budgeted 2016 $ 361,434 18,250 25,323 36,800 441,807 OPersonal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current 2014 2015 31,874 32,050 $ 1.02 $ 1.10 $ 12.26 $ 13.20 Budgeted 2016 32,230 $ 1.14 $ 13.71 Fund: 0101 -General Cost Center: 42400 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 2015 included replacement of decoder boards at all 12 sirens. The 2nd generation decoder boards have flexibility to detect and monitor both electrical current flow and sound during operation. The main DC batteries operating the sirens are on a four year replacement rotation with three sirens receiving new batteries every year. Actual Current Budgeted Performance Measures 2014 2015 2016 Siren tests throughout the severe weather season 4 4 4 State-wide siren tests 14 14 14 Number of sirens 12 12 12 Table of Contents Department: Emergency Management Director/Manager: Building Official Service Expenditures By Category Budgeted 2016 0.05 Budgeted 2016 $ 6,298 2,500 8,184 6,000 22,982 .personal Services 0Supplies 8 Materials - _ OOther Services / Charges •,ti"�^��` +�,� oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 76 Actual ,)n1n J I,oI -F $ 0.06 $ 0.69 Current 2015 32,050 $ 0.08 $ 0.91 Budgeted mir JL,LJV $ 0.06 $ 0.71 Actual Current Staffing Levels 2014 2015 FTE Equivalents 0.05 0.05 Actual Current Service Expenditures 2014 2015 Personal Services $ 5,555 $ 6,005 Supplies & Materials 434 - Other Services / Charges 7,607 8,184 Purchased Services 8,240 15,000 TOTAL 21,836 29,189 Service Expenditures By Category Budgeted 2016 0.05 Budgeted 2016 $ 6,298 2,500 8,184 6,000 22,982 .personal Services 0Supplies 8 Materials - _ OOther Services / Charges •,ti"�^��` +�,� oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 76 Actual ,)n1n J I,oI -F $ 0.06 $ 0.69 Current 2015 32,050 $ 0.08 $ 0.91 Budgeted mir JL,LJV $ 0.06 $ 0.71 Table of Contents Fund: Cost Center: 0101 -General 42500 Department: Director/Manager: Animal Control City Clerk 2015 2016 Number of dogs licensed 221 271 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 Budget 2016 includes a reduction in animal control services based on the type of services provided. Actual Current Budgeted Performance Measures 2014 2015 2016 Number of dogs licensed 221 271 250 Number of animals confined 30 55 50 Service Expenditures By Categor ®Personal Services � ■Supplies 8 Materials OOther Services / Charges .,r,�, OPurchased Services Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Monthly Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials 102 150 150 Other Services / Charges 150 200 200 Purchased Services 3,774 9,600 7,600 TOTAL $ 4,026 9,950 7,950 Service Expenditures By Categor ®Personal Services � ■Supplies 8 Materials OOther Services / Charges .,r,�, OPurchased Services ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 77 Actual Current Budgeted Expenditures Per Capita Capita 2014 2015 2016 Population - Estimate 31,874 32,050 32,230 Monthly $ 0.01 $ 0.03 $ 0.02 Annual $ 0.13 $ 0.31 $ 0.25 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 77 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 2016 as compared to Current 2015. The increase is largely due to operating supplies for road maintenance and the second application of calcium chloride for dust control. Road Markings/Striping (intersections) Actual Current Budgeted Performance Measures 2014 2015 2016 Asphalt Streets Maintained (miles) 195 200 200 Gravel Roads Maintained (miles) 6.5 5.5 5.5 Cul-de-sacs & Deadends Maintained 332 345 345 Road Markings/Striping (intersections) 160 160 160 Street Sweeping (miles) 387 396 396 Gravel Usage (tons) 300 1,085 1,200 Asphalt Usage (tons) 300 300 300 Spray Patcher - Rock (tons) 200 100 150 Sorav Patcher - Oil (aallons) 3.000 1.100 2.000 Table of Contents Department: Streets & Highways Director/Manager: Street Supervisor Actual Staffing Levels 2014 FTE Equivalents 4.88 Service Expenditures By Cate2ory Current 2015 5.20 Current 2015 $ 453,235 53,550 87,279 31,600 625,664 Budgeted 2016 5.05 Budgeted 2016 $ 455,308 66,050 89,779 39,100 650,237 ■ Personal Services ■Supplies & Matenals OCther Services / Charges D Purchased Services Actual Service Expenditures 2014 Personal Services $ 427,721 Supplies & Materials 65,971 Other Services / Charges 82,535 Purchased Services 24,086 TOTAL 600,313 Service Expenditures By Cate2ory Current 2015 5.20 Current 2015 $ 453,235 53,550 87,279 31,600 625,664 Budgeted 2016 5.05 Budgeted 2016 $ 455,308 66,050 89,779 39,100 650,237 ■ Personal Services ■Supplies & Matenals OCther Services / Charges D Purchased Services ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 78 Actual Current Budgeted Expenditures Per Capita 2014 2015 2016 Population - Estimates 31,874 32,050 32,230 Monthly $ 1.57 $ 1.63 $ 1.68 Annual $ 18.83 $ 19.52 $ 20.17 ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 78 Table of Contents Fund: 0101 -General Department: Snow & Ice Cost Center: 43200 Director/Manager: Street Supervisor Activitv Description Actual Current Budgeted All Public Works Departments provide snow removal services for 198 miles of Staffing Levels 2014 2015 2016 city streets and 330 cul-de-sacs. The goal is to provide convenient, reasonably FTE Equivalents 3.95 2.65 2.65 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 Actual Personal Services are allocated based on time spent removing snow and ice from roads, trails, and/or parking lots. The increase in Budget 2016 is due to the increase in salt purchases. 2016 Personal Services Actual Current Budgeted Performance Measures 2014 2015 2016 Miles of streets plowed 198 200 200 Cul-de-sacs 332 345 345 Sand/Salt Usage (tons) 1,900 1,325 1,600 Brine Usaae (aal) 6.000 5.000 5.000 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 79 Actual $ 1.67 $ 19.99 ■Personal Services NSupplies & Matenals OCther Services / Charges OPurchased Services Current 2015 32,050 $ 1.40 $ 16.84 Budgeted $ 1.46 $ 17.49 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 327,190 $ 253,433 $ 261,950 Supplies & Materials 155,485 127,800 143,100 Other Services / Charges 152,949 157,537 157,537 Purchased Services 1,530 1,000 1,000 TOTAL 637,154 539,770 563,587 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 79 Actual $ 1.67 $ 19.99 ■Personal Services NSupplies & Matenals OCther Services / Charges OPurchased Services Current 2015 32,050 $ 1.40 $ 16.84 Budgeted $ 1.46 $ 17.49 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 2016 as compared to Current 2015. Performance Measures Sign Compliant Upgrades (# of zones) Actual 2014 0.75 Current 2015 1 Budgeted 2016 1 Damaged/Repair/Replace (# of signs) 150 100 100 Upgrade Street Signs (6" to 9" signs) 75 75 125 All Parks and Trail Signs 60 125 50 Traffic Counts (locations) 52 52 52 Sign Inventory / ID'ed (# of zones) 1 1 1 Soeed Limit Sians (35moh) 25 25 25 Table of Contents Department: Street Signs Director/Manager: Street Supervisor Service Expenditure By Category Expenditures Per Capita Population - Estimates Monthly Annual ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 80 Actual 2014 31,874 $ 0.49 $ 5.90 ■Personal Services NSupplies & Matenals OCther Services / Charges oPurchased Services Current 2015 32,050 $ 0.53 $ 6.35 Budgeted 2016 32,230 $ 0.53 $ 6.34 Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents 1.30 1.41 1.41 Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ 126,908 $ 138,707 $ 142,157 Supplies & Materials 47,380 48,150 45,360 Other Services / Charges 13,647 15,176 15,176 Purchased Services - 1,500 1,500 TOTAL 187,935 203,533 204,193 Service Expenditure By Category Expenditures Per Capita Population - Estimates Monthly Annual ---------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 80 Actual 2014 31,874 $ 0.49 $ 5.90 ■Personal Services NSupplies & Matenals OCther Services / Charges oPurchased Services Current 2015 32,050 $ 0.53 $ 6.35 Budgeted 2016 32,230 $ 0.53 $ 6.34 Table of Contents 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 2014 2015 2016 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 2014 2015 2016 Personal Services $ - $ - $ - Process Used Supplies & Materials - - - Intersections are signalized at various locations within the community based on Other Services / Charges 20,299 26,000 26,000 the Anoka County cost share policy and the need of the community. Purchased Services 14,602 9,000 9,000 TOTAL 34,901 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 � OPersonal Services Energy maintains the overhead street lights and 5 - 10 go out every year. Wayside WSupplies B Materials horns require a monthly inspection/service visit and a bi-annual complete overview l OOther Services/Charges of the system. OPurchased Services Actual Current Budgeted Performance Measures 2014 2015 2016 Traffic Signals: Actual Current Budgeted Within the Community 17 18 19 Expenditures Per Capita 2014 2015 2016 Shared (Anoka & Coon Rapids) 7 7 7 Population - Estimates 31,874 32,050 32,230 Wayside Horns 2 2 2 Monthly $ 0.09 $ 0.09 $ 0.09 Annual $ 1.09 $ 1.09 $ 1.09 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 81 Table of Contents 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 220 Current 2015 250 Budgeted 305 Actual Staffing Levels 2014 FTE Equivalents N/A Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 82 Actual $ 0.09 $ 1.02 Current Budgeted 2015 2016 N/A N/A Current 2015 36,000 400 36,400 Current 2015 Budgeted 2016 36,000 400 36,400 ■Personal Services MSupplies & Matenals 00ther Services / Charges oPurchased Services 32,050 $ 0.09 $ 1.14 Budgeted -1- $ 0.09 $ 1.13 Actual Service Expenditures 2014 Personal Services $ - Supplies & Materials - Other Services / Charges 32,646 Purchased Services - TOTAL 32,646 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 82 Actual $ 0.09 $ 1.02 Current Budgeted 2015 2016 N/A N/A Current 2015 36,000 400 36,400 Current 2015 Budgeted 2016 36,000 400 36,400 ■Personal Services MSupplies & Matenals 00ther Services / Charges oPurchased Services 32,050 $ 0.09 $ 1.14 Budgeted -1- $ 0.09 $ 1.13 Table of Contents 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. Actual Current Budgeted Performance Measures 2014 2015 2016 Number of Street Liahts Billed 1.240 1.248 1.263 Service Expenditures By Category Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.53 Annual $ 6.37 -------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 83 ®Personal Services ■Supplies & Matenals OCther Services & Charges OPurchased Services Current Budgeted 2015 2016 32,050 32,230 $ 0.56 $ 0.56 $ 6.74 $ 6.75 Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services & Charges 177,455 190,000 187,500 Purchased Services 25,693 26,000 30,000 TOTAL 203,148 216,000 217,500 Service Expenditures By Category Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.53 Annual $ 6.37 -------------------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 83 ®Personal Services ■Supplies & Matenals OCther Services & Charges OPurchased Services Current Budgeted 2015 2016 32,050 32,230 $ 0.56 $ 0.56 $ 6.74 $ 6.75 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 2016 includes an increase in the cost of health insurance, a COLA adjustment and any step changes for newer employees. Current 2015 included increases to all 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 2014 51 Current 2015 52 Budgeted 2016 53 Total acreage mowed 332 332 332 Ballfields maintained 28 29 29 Number of playgrounds 38 38 39 Total soccer fields maintained 16 16 16 Miles of trail maintained 33 33 33 Ice Rinks/ Warmina Houses 12/4 12/4 12/4 Table of Contents Department: Parks & Recreation Director/Manager: Parks Maintenance Supervisor Actual Staffing Levels 2014 FTE Equivalents 7.33 Service Expenditures By Category Current 2015 8.51 Current 2015 $ 779,205 91,400 234,733 64,000 1,169,338 Budgeted In,a u.Yu Budgeted In,a IV I JG, I 1- 89,900 220,733 64,500 90,000 1,257,247 GPersonal services ■Supplies 8 Materials oother services / charges OPurchased Services ocapital outlay Actual Service Expenditures 2014 Personal Services $ 680,046 Supplies & Materials 74,004 Other Services / Charges 181,050 Purchased Services 74,273 Capital Outlay - TOTAL 1,009,373 Service Expenditures By Category Current 2015 8.51 Current 2015 $ 779,205 91,400 234,733 64,000 1,169,338 Budgeted In,a u.Yu Budgeted In,a IV I JG, I 1- 89,900 220,733 64,500 90,000 1,257,247 GPersonal services ■Supplies 8 Materials oother services / charges OPurchased Services ocapital outlay ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 84 Actual Current Budgeted Expenditures Per Capita 2014 2015 2016 Population - Estimates 31,874 32,050 32,230 Monthly $ 2.64 $ 3.04 $ 3.25 Annual $ 31.67 $ 36.48 $ 39.01 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 84 Table of Contents Fund: 0101 -General Department: Natural Resource Preservation Cost Center: 45500 Director/Manager: Parks Maintenance Supervisor Activitv Description Actual Current Budgeted The City has several open spaces that could benefit from various forms of vegetation Staffing Levels 2014 2015 2016 management. Activities included but not limited to prescribed burns, mowing, spot FTE Equivalents 0.00 0.00 0.03 spraying invasive weeds, harvesting invasive woody species and planting native trees, shrubs, grasses and wild flowers. The City will do some activities in-house and contract some out. This will improve wildlife habitat, storm water quality aesthetics and long-term Actual Current Budgeted sustainability. Service Expenditures 2014 2015 2016 Process Used Staff will review all the properties and rank them every year to determine which ones could benefit the most from applicable management at that time. Service Expenditure Highlights Land management services provided by staff and contractors. Personal Services $ - $ - $ 2,596 Supplies & Materials - - 2,500 Other Services / Charges - - 1,000 Purchased Services - - 4,000 TOTAL - - 10,096 Service Expenditures By Category Actual Current Expenditures Per Capita 2014 2015 Population - Estimates 31,874 32,050 Monthly $ - $ - Annual $ - $ - ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 85 Budgeted 2016 32,230 $ 0.03 $ 0.31 Actual Current Budgeted Performance Measures 2014 2015 2016 Number of City Open Space parcels 3 4 4 Total acreaqe manacled 116 170 170 Personal Services $ - $ - $ 2,596 Supplies & Materials - - 2,500 Other Services / Charges - - 1,000 Purchased Services - - 4,000 TOTAL - - 10,096 Service Expenditures By Category Actual Current Expenditures Per Capita 2014 2015 Population - Estimates 31,874 32,050 Monthly $ - $ - Annual $ - $ - ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 85 Budgeted 2016 32,230 $ 0.03 $ 0.31 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 Current 2015 included the paving of the entrance road leading to the recycling center. All other operations remain approximately the same. Table of Contents Department: Recycling Director/Manager: Recycling Coordinator Actual Current Budgeted Performance Measures 2014 2015 2016 Schools with recycling bins 6 6 6 Recycling Days 12 12 12 Recvclina collection tonnaae 1.719 1.511 2.000 Table of Contents Department: Recycling Director/Manager: Recycling Coordinator Service Expenditures By Category Budgeted 2016 1.23 Budgeted 2016 $ 84,371 7,375 2,681 36,500 130,927 ®Personal Services ■Supplies & Materials r 4 OOther Services / Charges OPurchased Services BCapital Outlay Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.30 Annual $ 3.57 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 86 Current 2015 32,050 $ 0.44 $ 5.31 Budgeted 2016 32,230 $ 0.34 $ 4.06 Actual Current Staffing Levels 2014 2015 FTE Equivalents 0.76 1.23 Actual Current Service Expenditures 2014 2015 Personal Services $ 57,539 $ 88,564 Supplies & Materials 5,906 7,375 Other Services / Charges 3,238 2,681 Purchased Services 47,219 36,500 Capital Outlay - 35,000 TOTAL $ 113,902 170,120 Service Expenditures By Category Budgeted 2016 1.23 Budgeted 2016 $ 84,371 7,375 2,681 36,500 130,927 ®Personal Services ■Supplies & Materials r 4 OOther Services / Charges OPurchased Services BCapital Outlay Actual Expenditures Per Capita 2014 Population - Estimates 31,874 Monthly $ 0.30 Annual $ 3.57 ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 86 Current 2015 32,050 $ 0.44 $ 5.31 Budgeted 2016 32,230 $ 0.34 $ 4.06 Table of Contents Fund: Cost Center: 0101 -General 49100 Department: Director/Manager: Unallocated Finance Director Staffing Levels 2014 2015 2016 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 No changes to Budget 2016. Service Expenditures By Catci!or Actual Current Budgeted Staffing Levels 2014 2015 2016 FTE Equivalents N/A N/A N/A Monthly Actual Current Budgeted Service Expenditures 2014 2015 2016 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 81,185 70,328 70,328 Purchased Services - - - Other Uses - - - TOTAL 81,185 70,328 70,328 Service Expenditures By Catci!or ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 87 Actual Current Budgeted Expenditures PerExpcnditures Pcr Capita ■Personal Services 2015 2016 Supplies & Matenals 31,874 32,050 OCther Services / Charges Monthly $ 0.21 OPurchased Services $ 0.18 Annual Baher Uses ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 87 Actual Current Budgeted Expenditures PerExpcnditures Pcr Capita 2014 2015 2016 Population - Estimates 31,874 32,050 32,230 Monthly $ 0.21 $ 0.18 $ 0.18 Annual $ 2.55 $ 2.19 $ 2.18 ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 87 Table of Contents This page left blank intentionally. 88 CITY OF ANDOVER, MINNESOTA 2016 ANNUAL BUDGET SPECIAL REVENUE FUNDS DEFINITION: Table of Contents 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. 89 Table of Contents This page left blank intentionally. a Table of Contents City of Andover Special Revenue Funds 2016 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 Fund Balance, December 31 $ 407,587 $ 607,404 $ 607,404 $ 457,915 40,066 Actual 1 Adopted Estimate 1 Adopted Description 2014 2015 2015 2016 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 Fund Balance, December 31 $ 407,587 $ 607,404 $ 607,404 $ 457,915 40,066 40,000 40,000 40,000 4,909 37,500 - 37,500 722,462 617,800 666,700 671,700 12,592 7,500 5,500 7,500 900,330 820,900 842,000 805,500 1,680,359 1,523,700 1,554,200 1,562,200 1,562,200 1,680,359 1,523,700 1,554,200 2,087,946 2,131,104 2,161,604 2,020,115 490,752 506,034 519,034 483,086 97,916 78,870 104,285 85,570 166,699 248,975 260,675 256,035 448,408 491,397 448,097 481,597 29,774 14,000 - 56,000 1,233,549 1,339,276 1,332,091 1,362,288 246,993 371,598 371,598 378,398 1,480,542 1,710,874 1,703,689 1,740,686 $ 607,404 $ 420,230 $ 457,915 $ 279,429 Change in Fund Balance $ 199,817 $ (187,174) $ (149,489) $ (178,486) 49% -31% -25% -39% 91 Table of Contents 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: $ 405,838 $ 380,792 $ 380,792 $ 240,843 36,622 10,677 5,868 53,167 15,600 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: $ 405,838 $ 380,792 $ 380,792 $ 240,843 36,622 10,677 5,868 53,167 15,600 20,000 20,000 5,000 5,000 5,000 20,600 25,000 25,000 53,167 20,600 459,005 401,392 Expenditures Personal Services 48,502 53,149 Supplies and Materials 11,235 18,200 Purchased Services 8,477 78,750 Other Services and Charges 9,999 14,850 Total Expenditures: 78,213 164,949 Other Uses Transfers Out - - Total Expenditures and Other Uses: 78,213 164,949 Fund Balance, December 31 $ 380,792 $ 236,443 Change in Fund Balance $ (25,046) $ (144,349) -6% -38% 92 25,000 405,792 53,149 18,200 78,750 14,850 164,949 164,949 $ 240,843 $ (139,949) -37% 25,000 265,843 22,610 18,900 78,800 14,850 135,160 135,160 $ 130,683 $ (110,160) -46% Table of Contents Fund: Economic Development Authority Activity Type/Code: Special Revenue Department Head: City Administrator Expenditure Hiahliahts General Activity Description 2014, 2015 & 2016 includes funding for monument entrance signs. To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. 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. 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 93 Table of Contents City of Andover Special Revenue Funds Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues Intergovernmental - 25,000 - 25,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: - 25,000 - 25,000 Total Available: - 25,000 - 25,000 Expenditures Other Services and Charges - 25,000 - 25,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: - 25,000 - 25,000 Fund Balance, December 31 $ - $ - $ - $ - Change in Fund Balance $ - $ - $ - $ - n/a n/a n/a n/a 94 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 2016, additional grant monies will be applied for to study areas that have access to city water but are not currently hooked up. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 95 Table of Contents 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 Fund Balance, December 31 Change in Fund Balance $ (210,573) $ (48,364) $ (48,364) $ (31,432) 616,835 (6,582) 851,916 1,462,169 1,462,169 1,251,596 405,797 75,741 117,220 429,935 29,774 1,058,467 241,493 1,299,960 $ (48,364) $ 162,209 -77% 96 577,200 804,400 1,381,600 1,381,600 1,333,236 414,558 50,850 91,000 438,947 14,000 1,009,355 371,598 1,380,953 $ (47,717) $ 647 -1% 616,700 (2,000) 820,000 1,434,700 1,434,700 1,386,336 427,558 82,765 115,200 420,647 1,046,170 371,598 1,417,768 $ (31,432) $ 16,932 -35% 618,700 784,000 1,402,700 1,402,700 1,371,268 441,231 56,850 96,000 429,147 56,000 1,079,228 371,598 1,450,826 $ (79,558) $ (48,126) 153% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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 Change in Fund Balance $ (210,573) $ (48,364) $ (48,364) $ (31,432) 616,835 (6,582) 851,916 1,462,169 1,462,169 1,251,596 405,797 75,741 117,220 429,935 29,774 1,058,467 241,493 1,299,960 $ (48,364) $ 162,209 -77% 96 577,200 804,400 1,381,600 1,381,600 1,333,236 414,558 50,850 91,000 438,947 14,000 1,009,355 371,598 1,380,953 $ (47,717) $ 647 -1% 616,700 (2,000) 820,000 1,434,700 1,434,700 1,386,336 427,558 82,765 115,200 420,647 1,046,170 371,598 1,417,768 $ (31,432) $ 16,932 -35% 618,700 784,000 1,402,700 1,402,700 1,371,268 441,231 56,850 96,000 429,147 56,000 1,079,228 371,598 1,450,826 $ (79,558) $ (48,126) 153% 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 2016 is for replacement of the rink rubber flooring ($36,000) in the hallways and locker rooms; and to crack seal the parking lot ($20,000). Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 97 Table of Contents 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: $ 132,453 $ 154,838 $ 154,838 $ 147,738 28,097 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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: $ 132,453 $ 154,838 $ 154,838 $ 147,738 28,097 8,000 4,157 1,200 32,254 9,200 32,254 9,200 8,000 1,200 9,200 9,200 8,000 1,200 9,200 9,200 164,707 164,038 164,038 156,938 602 2,300 2,300 2,300 3,877 7,000 7,000 9,500 5,390 7,000 7,000 7,000 9,869 16,300 16,300 18,800 9,869 16,300 Fund Balance, December 31 $ 154,838 $ 147,738 Change in Fund Balance $ 22,385 $ (7,100) 17% -5% 98 16,300 $ 147,738 $ (7,100) -5% 18,800 $ 138,138 $ (9,600) -6% 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. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 0 Table of Contents City of Andover Special Revenue Funds Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 4,089 $ 2,295 $ 2,295 $ 1,312 Revenues General Property Taxes 40,066 40,000 40,000 40,000 Investment Income (281) 100 100 100 Total Revenues: 39,785 40,100 40,100 40,100 Other Sources Transfers In - - - - Total Revenues and Other Sources: 39,785 40,100 40,100 40,100 Total Available: 43,874 42,395 42,395 41,412 Expenditures Personal Services 15,733 16,738 16,738 9,425 Supplies and Materials - 520 520 520 Purchased Services 25,680 23,625 23,625 22,035 Other Services and Charges 166 200 200 200 Total Expenditures: 41,579 41,083 41,083 32,180 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 41,579 41,083 41,083 32,180 Fund Balance, December 31 $ 2,295 $ 1,312 $ 1,312 $ 9,232 Change in Fund Balance $ (1,794) $ (983) $ (983) $ 7,920 -44% -43% -43% 604% we] Table of Contents Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Department Head: Assistant City Engineer Expenditure Hiahliahts 2016 includes a slight decrease in funding to the LRRWMO. 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA on Table of Contents 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 $ 3,559 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures $ 3,559 $ 7,243 $ 7,243 $ 7,343 Purchased Services - 4,909 12,500 - 12,500 146 100 100 100 8,967 6,500 - 6,500 14,022 19,100 100 19,100 14,022 - 19,000 100 7,243 $ 19,100 19,100 Change in Fund Balance $ 3,684 $ 17.581 26.343 7.343 26.443 Supplies and Materials 10,338 6,500 - 6,500 Purchased Services - 12,500 - 12,500 Total Expenditures: 10,338 19,000 - 19,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 10,338 19,000 - 19,000 Fund Balance, December 31 $ 7,243 $ 7,343 $ 7,343 $ 7,443 Change in Fund Balance $ 3,684 $ 100 $ 100 $ 100 104% 1% 1% 1% 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. In 2015, the City did not have a tree sale. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 103 Table of Contents 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 $ 45,008 $ 49,998 $ 49,998 $ 34,909 Revenues Charges for Services Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 45,008 $ 49,998 $ 49,998 $ 34,909 Revenues Charges for Services 38,320 12,000 17,000 20,000 Investment Income 975 500 500 500 Total Revenues: 39,295 12,500 17,500 20,500 Other Sources Transfers In - - - - Total Revenues and Other Sources: 39,295 12,500 17,500 20,500 Total Available: 84,303 62,498 67,498 55,409 Expenditures Personal Services 20,720 21,589 21,589 9,820 Supplies and Materials - 500 500 500 Purchased Services 7,755 10,100 10,100 11,200 Other Services and Charges 330 400 400 400 Total Expenditures: 28,805 32,589 32,589 21,920 Other Uses Transfers Out 5,500 - - 6,800 Total Expenditures and Other Uses: 34,305 32,589 32,589 28,720 Fund Balance, December 31 $ 49,998 $ 29,909 $ 34,909 $ 26,689 Change in Fund Balance $ 4,990 $ (20,089) $ (15,089) $ (8,220) 11% -40% -30% -24% 104 Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue Expenditure Hiahliahts The 2014 transfer to the Road & Bridge Capital Projects is for the degredation of roadways associated with right-of-way permits. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 105 Table of Contents 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 $ 26,085 $ 57,236 $ 57,236 $ 53,536 1,262 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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 $ 26,085 $ 57,236 $ 57,236 $ 53,536 1,262 300 33,579 10,000 34,841 10,300 34,841 10,300 300 22,000 22,300 22,300 300 15,000 15,300 15,300 60,926 67,536 79,536 68,836 3,690 26,000 Total Expenditures and Other Uses: 3,690 26,000 Fund Balance, December 31 $ 57,236 $ 41,536 Change in Fund Balance $ 31,151 $ (15,700) 119% -27% 106 26,000 26,000 $ 53,536 $ (3,700) -6% 26,000 26,000 $ 42,836 $ (10,700) -20% Fund: Charitable Gambling Activity Type/Code: Special Revenue Expenditure Hiahliahts This fund was created to track the donations received from the Andover Hockey Association and Andover Football Association from their gambling activities. 2015 includes funding towards the Alexandra House, Youth First, Family of Promise, teen programing, etc.. Funding for these expenditures is dependent upon donations. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 107 Table of Contents 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 $ 1,128 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out $ 1,128 $ 3,366 $ 3,366 $ 3,666 Fund Balance, December 31 $ 3,366 $ 3,666 $ 3,666 $ 2,588 5,000 5,000 5,000 2,238 300 300 300 4,826 5,300 5,300 5,300 4,826 5,300 5,300 5,300 5,954 8,666 8,666 8,966 2,588 5,000 5,000 5,000 Total Expenditures and Other Uses: 2,588 5,000 5,000 5,000 Fund Balance, December 31 $ 3,366 $ 3,666 $ 3,666 $ 3,966 Change in Fund Balance $ 2,238 $ 300 $ 300 $ 300 198% 9% 9% 8% 108 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 developments. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA W Table of Contents This page left blank intentionally. ME CITY OF ANDOVER, MINNESOTA 2016 ANNUAL BUDGET DEBT SERVICE FUNDS DEFINITION: Table of Contents 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. In Table of Contents This page left blank intentionally. Table of Contents City of Andover Debt Service Funds 2016 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 Change in Fund Balance $ 17,767,831 2,074,115 61,680 60,805 2,196,600 622,454 2,819,054 20,586,885 2,140,000 900,504 7,895 3,048,399 9,951 16,455,000 16,464,951 19,513,350 $ 1,073,535 $ (16,694,296) -94% 113 $ 1,073,535 2,136,065 2,136,065 371,598 2,507,663 3,581,198 1,765,000 470,688 2,500 2,238,188 47,632 47,632 2,285,820 $ 1,295,378 $ 221,843 21% $ 1,073,535 2,136,065 2,000 2,138,065 371,598 2,509,663 3,583,198 1,765,000 470,688 2,275 2,237,963 48,902 48,902 2,286,865 $ 1,296,333 $ 222,798 21% $ 1,296,333 2,100,413 2,000 2,102,413 376,860 2,479,273 3,775,606 1,770,000 439,698 2,450 2,212,148 104,123 104,123 2,316,271 $ 1,459,335 $ 163,002 13% Actual 1 Adopted Estimate 1 Adopted Description 2014 2015 2015 2016 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 Change in Fund Balance $ 17,767,831 2,074,115 61,680 60,805 2,196,600 622,454 2,819,054 20,586,885 2,140,000 900,504 7,895 3,048,399 9,951 16,455,000 16,464,951 19,513,350 $ 1,073,535 $ (16,694,296) -94% 113 $ 1,073,535 2,136,065 2,136,065 371,598 2,507,663 3,581,198 1,765,000 470,688 2,500 2,238,188 47,632 47,632 2,285,820 $ 1,295,378 $ 221,843 21% $ 1,073,535 2,136,065 2,000 2,138,065 371,598 2,509,663 3,583,198 1,765,000 470,688 2,275 2,237,963 48,902 48,902 2,286,865 $ 1,296,333 $ 222,798 21% $ 1,296,333 2,100,413 2,000 2,102,413 376,860 2,479,273 3,775,606 1,770,000 439,698 2,450 2,212,148 104,123 104,123 2,316,271 $ 1,459,335 $ 163,002 13% Table of Contents 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 105,901 Revenues Investment Income - - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: - - - - Total Available: 105,901 - - - Expenditures Debt Service Principal 95,000 - - - Interest 950 - - - Other - - - - Total Expenditures: 95,950 - - - Other Uses Operating Transfers Out 9,951 - - - Total Expenditures and Other Uses: 105,901 - - - Fund Balance, December 31 $ - $ - $ - $ - Change in Fund Balance $ (105,901) $ - $ - $ - -100% n/a n/a n/a 114 Fund: 3210 Cost Center: 2011A G.O. Equipment Certificates Activity Type/Code: Debt Service This fund was closed in 2014. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 115 Table of Contents 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: $ 236,730 $ 373,049 $ 373,049 $ 502,899 140,196 8,273 148,469 140,000 140,000 148,469 140,000 385,199 513,049 140,000 2,000 142,000 142,000 515,049 142,885 2,000 144,885 144,885 647,784 50,000 11,700 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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: $ 236,730 $ 373,049 $ 373,049 $ 502,899 140,196 8,273 148,469 140,000 140,000 148,469 140,000 385,199 513,049 140,000 2,000 142,000 142,000 515,049 142,885 2,000 144,885 144,885 647,784 50,000 11,700 11,700 11,700 11,200 450 500 450 500 12,150 12,200 12,150 61,700 12,150 12,200 12,150 61,700 Fund Balance, December 31 $ 373,049 $ 500,849 Change in Fund Balance $ 136,319 $ 127,800 58% 34% 116 $ 502,899 $ 129,850 35% $ 586,084 $ 83,185 17% Table of Contents 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 2016 $ 61,200 $ 50,000 $ 11,200 2017 540,350 535,000 5,350 $ 601,550 $ 585,000 $ 16,550 Process Used The City issued $585,000 of Capital Notes in 2012 to facilitate the purchase of new equipment. ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 117 Table of Contents 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ - $ 263,348 $ 263,348 $ 301,977 Revenues General Property Taxes 260,363 296,055 296,055 295,470 Investment Income 2,985 - - - Total Revenues: 263,348 296,055 296,055 295,470 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 263,348 296,055 296,055 295,470 Total Available: 263,348 559,403 559,403 597,447 Expenditures Debt Service Principal - 225,000 225,000 260,000 Interest - 31,926 31,926 23,350 Other - 500 500 500 Total Expenditures: - 257,426 257,426 283,850 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - 257,426 257,426 283,850 Fund Balance, December 31 $ 263,348 $ 301,977 $ 301,977 $ 313,597 Change in Fund Balance $ 263,348 $ 38,629 $ 38,629 $ 11,620 n/a 15% 15% 4% 118 Table of Contents Fund: 3212 Cost Center: 2014A 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 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 $ 1,396,650 $ 1,330,000 $ 66,650 Process Used The City issued $1,355,000 of Capital Notes in 2014 to facilitate the purchase of equipment. ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA M Table of Contents City of Andover Debt Service Funds General Obligation Bonds - 2012B G.O. Capital Improvement Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses $ 25,790 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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 $ 25,790 $ 55,568 $ 55,568 $ 80,838 24,400 14,400 14,400 561,799 540,120 540,120 498,435 (7,171) - - - 554,628 540,120 540,120 498,435 554,628 524,850 514,900 540,120 540,120 498,435 580,418 595,688 595,688 579,273 500,000 500,000 500,000 470,000 24,400 14,400 14,400 4,700 450 500 450 450 524,850 514,900 514,850 475,150 - - - 104,123 524,850 514,900 514,850 579,273 Fund Balance, December 31 $ 55,568 $ 80,788 $ 80,838 $ Change in Fund Balance $ 29,778 $ 25,220 $ 25,270 $ 115% 45% 45% 120 (80,838) -100% Table of Contents 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 2016 $ 474,700 $ 470,000 $ 4,700 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 121 Table of Contents 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 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 513,645 Revenues General Property Taxes 182,964 - - - Investment Income (1,562) - - - Total Revenues: 181,402 - - - Other Sources Operating Transfers In 212,356 - - - Total Revenues and Other Sources: 393,758 - - - Total Available: 907,403 - - - Expenditures Debt Service Principal 470,000 - - - Interest 434,373 - - - Other 3,030 - - - Total Expenditures: 907,403 - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 907,403 - - - Fund Balance, December 31 $ - $ Change in Fund Balance $ (513,645) $- -100% n/a n/a n/a 122 Fund: 3402 Cost Center: 2004 EDA Public Facility Lease Revenue Bonds Activitv Tvpe/Code: Debt Service This fund was closed in 2014. 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. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 123 Table of Contents 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 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 9,706,648 Revenues Investment Income 35,266 - - - Other Sources Operating Transfers In 14,826 - - - Total Revenues and Other Sources: 50,092 - - - Total Available: 9,756,740 - - - Expenditures Debt Service Principal - - - - Interest - - - - Other 1,740 - - - Total Expenditures: 1,740 - - - Other Uses Redemption of Refunded Bonds 9,755,000 - - - Total Expenditures and Other Uses: 9,756,740 - - - Fund Balance, December 31 $ - $ Change in Fund Balance $ (9,706,648) $- -100% n/a n/a n/a 124 Table of Contents Fund: 3403 Cost Center: 2006A EDA Public Facility Lease Revenue Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service This fund was 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 125 Table of Contents 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 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 6,662,794 Revenues Investment Income 24,245 - - - Other Sources Operating Transfers In 14,311 - - - Total Revenues and Other Sources: 38,556 - - - Total Available: 6,701,350 - - - Expenditures Debt Service Principal - - - - Interest - - - - Other 1,350 - - - Total Expenditures: 1,350 - - - Other Uses Redemption of Refunded Bonds 6,700,000 - - - Total Expenditures and Other Uses: 6,701,350 - - - Fund Balance, December 31 $ - $ Change in Fund Balance $ (6,662,794) $- -100% n/a n/a n/a 126 Table of Contents Fund: 3404 Cost Center: 2007 EDA Public Facility Lease Revenue Refunding Bonds Department Head: Finance Director Activit Type/Code: Debt Service This fund was 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 127 Table of Contents 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 Change in Fund Balance $ 35,088 $ 64,809 $ 64,809 $ 196,727 741,093 (5,266) 735,827 735,827 770,915 320,000 385,681 425 706,106 706,106 $ 64,809 $ 29,721 85% 128 975,652 975,652 371,598 1,347,250 1,412,059 835,000 379,907 500 1,215,407 1,215,407 $ 196,652 $ 131,843 203% 975,652 975,652 371,598 1,347,250 1,412,059 835,000 379,907 425 1,215,332 1,215,332 $ 196,727 $ 131,918 204% 977,332 977,332 371,598 1,348,930 1,545,657 845,000 371,506 500 1,217,006 1,217,006 $ 328,651 $ 131,924 67% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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 Change in Fund Balance $ 35,088 $ 64,809 $ 64,809 $ 196,727 741,093 (5,266) 735,827 735,827 770,915 320,000 385,681 425 706,106 706,106 $ 64,809 $ 29,721 85% 128 975,652 975,652 371,598 1,347,250 1,412,059 835,000 379,907 500 1,215,407 1,215,407 $ 196,652 $ 131,843 203% 975,652 975,652 371,598 1,347,250 1,412,059 835,000 379,907 425 1,215,332 1,215,332 $ 196,727 $ 131,918 204% 977,332 977,332 371,598 1,348,930 1,545,657 845,000 371,506 500 1,217,006 1,217,006 $ 328,651 $ 131,924 67% Table of Contents 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Omni in# $ 1,216,506 1,213,732 1,211,482 1,208,932 1,215,982 1,212,632 1,213,932 1,209,282 1,213,000 1,209,356 1,208,275 1,205,250 1,205,147 1,212,675 1,213,400 1,218,000 $19,387,583 Principal $ 845,000 855,000 870,000 885,000 910,000 925,000 945,000 960,000 985,000 1,005,000 1,030,000 1,055,000 1,085,000 1,125,000 1,160,000 1,200,000 $15,840,000 I n#o roc# $ 371,506 358,732 341,482 323,932 305,982 287,632 268,932 249,282 228,000 204,356 178,275 150,250 120,147 87,675 53,400 18,000 $ 3,547,583 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 129 Table of Contents 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 7,889 Revenues Investment Income - - - - Other Sources Operating Transfers In 380,961 - - - Total Revenues and Other Sources: 380,961 - - - Total Available: 388,850 - - - Expenditures Debt Service Principal 385,000 - - - Interest 3,850 - - - Other - - - - Total Expenditures: 388,850 - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 388,850 - - - Fund Balance, December 31 $ - $ Change in Fund Balance $ (7,889) $- -100% n/a n/a n/a 130 Table of Contents Fund: 3605 Cost Center: 2010A G.O. PIR Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service This fund was 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 2016 BUDGET CITY Of ANDOVER, MINNESOTA 131 Table of Contents 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ 281,577 $ 109,742 $ 109,742 $ - Revenues Intergovernmental 61,680 - - - Investment Income 1,270 - - - Total Revenues: 62,950 - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 62,950 - - - Total Available: 344,527 109,742 109,742 - Expenditures Debt Service Principal 230,000 60,000 60,000 - Interest 4,785 840 840 - Other - - - - Total Expenditures: 234,785 60,840 60,840 - Other Uses Operating Transfers Out - 47,632 48,902 - Total Expenditures and Other Uses: 234,785 108,472 109,742 - Fund Balance, December 31 $ 109,742 $ 1,270 $ - $ - Change in Fund Balance $ (171,835) $ (108,472) $ (109,742) $ -61% -99% -100% n/a 132 Fund: 3702 Cost Center: 2009A G.O. State Aid Refunding Bonds Activit Type/Code: Debt Service This fund will be closed in 2015. Table of Contents 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 $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 2010 BUDGET CITY OF ANDOVER, MINNESOTA 133 Table of Contents 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 $ 191,769 $ 207,019 $ 207,019 $ 213,892 187,700 2,765 190,465 184,238 184,238 186,291 184,238 184,238 186,291 190,465 184,238 382,234 391,257 184,238 391,257 5,262 191,553 405,445 140,000 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 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 $ 191,769 $ 207,019 $ 207,019 $ 213,892 187,700 2,765 190,465 184,238 184,238 186,291 184,238 184,238 186,291 190,465 184,238 382,234 391,257 184,238 391,257 5,262 191,553 405,445 140,000 145,000 145,000 145,000 34,765 31,915 31,915 28,942 450 500 450 500 175,215 177,415 177,365 174,442 175,215 177,415 177,365 174,442 Fund Balance, December 31 $ 207,019 $ 213,842 Change in Fund Balance $ 15,250 $ 6,823 8% 3% 134 $ 213,892 $ 6,873 3% $ 231,003 $ 17,111 8% Table of Contents 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 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 $ 1,222,300 $ 1,105,000 $ 117,300 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 135 Table of Contents This page left blank intentionally. 136 CITY OF ANDOVER, MINNESOTA 2016 ANNUAL BUDGET CAPITAL PROJECTS FUNDS DEFINITION: Table of Contents 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. 137 Table of Contents This page left blank intentionally. 138 Table of Contents City of Andover Capital Projects Funds 2016 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 $ 16,893,815 1,303,826 377,733 733,425 2,700,904 517,052 863,817 152,319 6,649,076 415,451 1,555,000 44,278 897,275 2,912,004 9,561,080 26,454,895 Purchased Services Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Bond Proceeds Bond Premium Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources Total Available: Expenditures $ 16,893,815 1,303,826 377,733 733,425 2,700,904 517,052 863,817 152,319 6,649,076 415,451 1,555,000 44,278 897,275 2,912,004 9,561,080 26,454,895 Purchased Services 161,723 Other Services and Charges 2,984,671 Capital Outlay 2,779,287 Debt Service - Principal Retirement 196,719 Total Expenditures: 6,122,400 Other Uses Operating Transfers Out 401,698 Total Expenditures and Other Uses: 6,524,098 Fund Balance, December 31 $ 19,930,797 $ 19,930,797 1,336,968 20,000 412,000 1,259,573 127,500 255,365 3,411,406 447,632 447,6T2- 3,859,038 23,789,835 156,000 2,812,000 1,367,496 4,335,496 58,249 4,393,745 $ 19,396,090 $ 19,930,797 $ 19,829,703 1,336,968 3,000 450,573 183,770 166,200 527,725 8,160 2,676,396 448,902 1,252,688 1,701,590 4,377,986 24,308,783 179,428 2,813,500 1,231,184 196,719 4,420,831 58,249 4,479,080 $ 19,829,703 1,415,984 1,153, 000 813,743 158,400 262,421 2,000 3,805,548 510,923 580,000 1,090,923 4,896,471 24,726,174 370,000 4,193,000 2,085,000 196,719 6,844,719 90,358 6,935,077 $ 17,791,097 Change in Fund Balance $ 3,036,982 $ (534,707) $ (101,094) $ (2,038,606) 18% -3% -1% -10% 139 Table of Contents 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 Change in Fund Balance $ 2,245,932 37,274 71,236 487,928 596,438 596,438 2,842,370 183,920 183,920 20,737 204,657 $ 2,637,713 $ 391,781 17% 140 $ 2,637,713 60,000 50,000 65,150 175,150 175,150 2,812,863 30,000 30,000 58,249 88,249 $ 2,724,614 $ 86,901 3% $ 2,637,713 40,000 50,000 261,585 351,585 351,585 2,989,298 32,498 32,498 58,249 90,747 $ 2,898,551 $ 260,838 10% $ 2,898,551 30,000 50,000 67,756 147,756 147,756 3,046,307 40,000 40,000 85,096 125,096 $ 2,921,211 $ 22,660 1% Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 2,245,932 37,274 71,236 487,928 596,438 596,438 2,842,370 183,920 183,920 20,737 204,657 $ 2,637,713 $ 391,781 17% 140 $ 2,637,713 60,000 50,000 65,150 175,150 175,150 2,812,863 30,000 30,000 58,249 88,249 $ 2,724,614 $ 86,901 3% $ 2,637,713 40,000 50,000 261,585 351,585 351,585 2,989,298 32,498 32,498 58,249 90,747 $ 2,898,551 $ 260,838 10% $ 2,898,551 30,000 50,000 67,756 147,756 147,756 3,046,307 40,000 40,000 85,096 125,096 $ 2,921,211 $ 22,660 1% Table of Contents Fund: 4110 Cost Center: Water Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects planned for 2016 include: New Development Projects $ 40,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. Projects for 2015 included: Water Trunk Oversizing - Catcher's Creek $ 32,498 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 141 Table of Contents City of Andover Capital Projects Funds Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 4,918,165 13,219 156,454 188,898 358,571 400,000 758,571 5,676,736 134,943 134,943 $ 5,541,793 20,000 50,000 12,415 82,415 400,000 482,415 6,024,208 110,000 110,000 $ 5,541,793 27,005 50,000 86,472 163,477 400,000 563,477 6,105,270 58,512 58,512 $ 6,046,758 20,000 50,000 12,415 82,415 400,000 482,415 6,529,173 110,000 110,000 134,943 110,000 58,512 110,000 $ 5,541,793 $ 623,628 13% 142 $ 5,914,208 $ 372,415 7% $ 6,046,758 $ 504,965 9% $ 6,419,173 $ 372,415 6% Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 4,918,165 13,219 156,454 188,898 358,571 400,000 758,571 5,676,736 134,943 134,943 $ 5,541,793 20,000 50,000 12,415 82,415 400,000 482,415 6,024,208 110,000 110,000 $ 5,541,793 27,005 50,000 86,472 163,477 400,000 563,477 6,105,270 58,512 58,512 $ 6,046,758 20,000 50,000 12,415 82,415 400,000 482,415 6,529,173 110,000 110,000 134,943 110,000 58,512 110,000 $ 5,541,793 $ 623,628 13% 142 $ 5,914,208 $ 372,415 7% $ 6,046,758 $ 504,965 9% $ 6,419,173 $ 372,415 6% Fund: 4120 Cost Center: Sewer Trunk Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects planned for 2016 include: New Development Projects Projects for 2015 included: Sanitary Sewer Oversizing - Catcher's Creek $ 110,000 $ 58,512 Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 143 Table of Contents City of Andover Capital Projects Funds Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ (64,940) $ (64,418) $ (64,418) $ (63,250) Revenues Investment Income (1,551) - (700) - User Charges 2,073 - 1,868 - Total Revenues: 522 - 1,168 - Other Sources Transfers In - - - - Total Revenues and Other Sources: 522 - 1,168 - Total Available: (64,418) (64,418) (63,250) (63,250) Expenditures Other Services and Charges - - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - - - Fund Balance, December 31 $ (64,418) $ (64,418) $ (63,250) $ (63,250) Change in Fund Balance $ 522 $ - $ 1,168 $ -1% 0% -2% 0% 144 Fund: 4130 Cost Center: Storm Sewer Activity Type/Code: Capital Projects Expenditure Hiahliahts No expenditures planned for 2016. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 145 Table of Contents 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 Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 3,114,711 1,031,647 576,993 2,698,473 114,289 4,421,402 5,500 4,426,902 7,541,613 2,026,438 517,014 2,543,452 $ 4,998,161 1,025,468 282,000 1,259,573 2,567,041 47,632 2,614,673 7,612,834 2,772,000 2,772,000 $ 4,998,161 1,025,468 302,972 171,692 30,000 1,530,132 48,902 1,579,034 6,577,195 2,772,000 2,772,000 $ 3,805,195 1,150, 984 1,053,000 813,743 25,000 3,042,727 6,800 3,049,527 6,854,722 4,178,000 4,178,000 2,543,452 2,772,000 2,772,000 4,178,000 $ 4,998,161 $ 1,883,450 60% 146 $ 4,840,834 $ (157,327) -3% $ 3,805,195 $ (1,192,966) -24% $ 2,676,722 $ (1,128,473) -30% Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 3,114,711 1,031,647 576,993 2,698,473 114,289 4,421,402 5,500 4,426,902 7,541,613 2,026,438 517,014 2,543,452 $ 4,998,161 1,025,468 282,000 1,259,573 2,567,041 47,632 2,614,673 7,612,834 2,772,000 2,772,000 $ 4,998,161 1,025,468 302,972 171,692 30,000 1,530,132 48,902 1,579,034 6,577,195 2,772,000 2,772,000 $ 3,805,195 1,150, 984 1,053,000 813,743 25,000 3,042,727 6,800 3,049,527 6,854,722 4,178,000 4,178,000 2,543,452 2,772,000 2,772,000 4,178,000 $ 4,998,161 $ 1,883,450 60% 146 $ 4,840,834 $ (157,327) -3% $ 3,805,195 $ (1,192,966) -24% $ 2,676,722 $ (1,128,473) -30% Fund: 4140 Cost Center: Road and Bridge Activity Type/Code: Capital Projects Expenditure Hiahliahts Some of the major 2016 projects are as follows: Annual street seal coat $ 460,000 Annual street crack seal 225,000 New / reconstruct routes 693,000 MSA - New / reconstruct routes 2,600,000 Pedestrian trail maintenance 45,000 Pedestrian trail reconstruction 50,000 Annual pavement markings 40,000 Gravel road improvements 15,000 Curb replacement 50,000 $ 4,178,000 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 Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 147 Table of Contents 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 Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 343,151 $ 334,566 $ 334,566 $ 327,566 61,460 61,500 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues General Property Taxes Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 343,151 $ 334,566 $ 334,566 $ 327,566 61,460 61,500 61,500 15,000 8,846 - 1,000 - 156,384 140,500 140,500 144,950 226,690 202,000 203,000 159,950 226,690 202,000 203,000 159,950 569,841 536,566 537,566 487,516 44,784 15,000 15,000 15,000 190,491 195,000 195,000 258,000 235,275 210,000 210,000 273,000 235,275 $ 334,566 $ (8,585) -3% 148 210,000 210,000 273,000 $ 326,566 $ 327,566 $ 214,516 $ (8,000) $ (7,000) $ (113,050) -2% -2% -35% Fund: 4150 Cost Center: Park Dedication Projects Activity Type/Code: Capital Projects Expenditure Hiahliahts 2016 Projects include: Annual Miscellaneous Projects $ 15,000 Timber Trails Park Renovation 200,000 Terrace Park - Irrigation & Water Service 35,000 Sunshine Park - Scoreboard Wiring & Design 23,000 $ 273,000 2015 Projects included: 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 Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 149 Table of Contents City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ 1,092,916 $ 886,411 $ 886,411 $ 830,695 Revenues Investment Income 28,495 6,000 6,000 6,000 Miscellaneous - - 6,200 - Total Revenues: 28,495 6,000 12,200 6,000 Other Sources Transfers In 9,951 - - 104,123 Proceeds from Sale of Capital Assets - - 128,803 - Total Other Sources: 9,951 - 128,803 104,123 Total Revenues and Other Sources: 38,446 6,000 141,003 110,123 Total Available: 1,131,362 892,411 1,027,414 940,818 Expenditures Other Services and Charges 48,232 - - - Capital Outlay - 200,000 - - Debt Service - Principal Retirement 196,719 - 196,719 196,719 Total Expenditures: 244,951 200,000 196,719 196,719 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 244,951 200,000 196,719 196,719 Fund Balance, December 31 $ 886,411 $ 692,411 $ 830,695 $ 744,099 Change in Fund Balance $ (206,505) $ (194,000) $ (55,716) $ (86,596) -19% -22% -6% -10% 150 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. 2016 196,719 2017 196,719 2018 196,719 $ 590,157 Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 151 Table of Contents City of Andover Capital Projects Funds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ 106,678 $ 134,963 $ 134,963 $ 149,235 Revenues Investment Income Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ 106,678 $ 134,963 $ 134,963 $ 149,235 Revenues Investment Income 3,526 - 400 400 User Charges 28,534 37,300 37,300 37,300 Total Revenues: 32,060 37,300 37,700 37,700 Other Sources Transfers In - - - - Total Revenues and Other Sources: 32,060 37,300 37,700 37,700 Total Available: 138,738 172,263 172,663 186,935 Expenditures Purchased Services Capital Outlay _ Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ Change in Fund Balance $ 3,775 - 23,428 - - - - 357,000 3,775 - 23,428 357,000 3,775 - 23,428 357,000 134,963 $ 172,263 $ 149,235 $ (170,065) 28,285 $ 37,300 $ 14,272 $ (319,300) 27% 28% 11% -214% 152 Fund: 4170 Cost Center: Trail & Transportation Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects planned for 2016 include: 8' Bituminous trail along Crosstown Blvd - Coon Creek bridge to South Coon Creek Drive - $118,000 5' Concrete sidewalk along Bunker Lake Blvd - Yukon St to Hidden Creek Park North - $52,000 5' Concrete sidewalk along Bunker Lake Blvd - Crosstown Blvd to Yukon St - $187,000 No projects planned for 2015. Table of Contents Department Head: Dir of PW / City Engineer General Activity Description The Trail and Transportation Capital Projects Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's Trail System. Process Used The Park and Recreation Commission evaluates the needs of the community with regard to trail facilities. Recommendations are made to the City Council and projects are then placed into the annual City Capital Improvement Plan. ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 153 Table of Contents 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 Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 687,274 $ 861,635 $ 861,635 $ 976,027 210,719 21,935 78,037 310,691 310,691 997,965 250,000 2,000 252,000 250,000 4,000 1,960 255,960 - 114,432 252,000 370,392 1,113,635 1,232,027 250,000 4,000 2,000 256,000 256,000 1,232,027 114,482 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: 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 Change in Fund Balance $ 687,274 $ 861,635 $ 861,635 $ 976,027 210,719 21,935 78,037 310,691 310,691 997,965 250,000 2,000 252,000 250,000 4,000 1,960 255,960 - 114,432 252,000 370,392 1,113,635 1,232,027 250,000 4,000 2,000 256,000 256,000 1,232,027 114,482 156,000 156,000 340,000 21,848 100,000 100,000 20,000 136,330 256,000 256,000 360,000 136,330 $ 861,635 $ 174,361 25% 154 256,000 256,000 360,000 $ 857,635 $ 976,027 $ 872,027 $ (4,000) $ 114,392 $ (104,000) 0% 13% -11% Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Expenditure Hiahliahts Projects outlined in the 2016 - 2020 CIP for year 2016 using the Capital Equipment Reserve Capital Projects Fund include: Using 2015 Capital Projects Reserve / levy: Annual Parking Lot Maintenance $ 30,000 Public Works/Community Center Master Planning 25,000 Replacement - SCBA's 250,000 Add / Replace server 20,000 Replacement - 800 MHz Radios 35,000 $ 360,000 Using 2015 Capital Projects Reserve / levy: Annual Parking Lot Maintenance $ 28,000 Repair/Replace Play Structures - Parks 50,000 Repair/Replace Major Park Projects - Parks 25,000 Replacement - Carpet / Tile 10,000 Building A - Seal Floor 20,000 Public Works/Community Center Master Planning 25,000 Replacement - Turnout Gear 18,000 Microsoft DataCenter & CAL's License 15,000 Microsoft Office Upgrade 15,000 Crooked Lake School Hockey Rink 50,000 $ 256,000 Table of Contents Department Head: Finance Director General Activity Description Resources for this fund come from residual fund transfers, interest earnings, and, in 2015 and 2016, a $250,000 property tax (capital) levy. Process Used During 2015 and 2016 budget processes, it was determined that various capital expenditures were necessary. The Andover Management Team and Andover Vehicle Purchasing Committee reviewed departmental needs and prioritized capital needs. ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 155 Table of Contents City of Andover Capital Projects Funds 2012A G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ 50,552 Revenues Investment Income - - - - Other Sources Proceeds from Sale of Capital Assets - - - - Total Revenues and Other Sources: - - - - Total Available: 50,552 - - - Expenditures Purchased Services - - - - Capital Outlay 50,552 - - - Total Expenditures: 50,552 - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 50,552 - - - Fund Balance, December 31 $ - $ Change in Fund Balance $ (50,552) $- -100% n/a n/a n/a 156 Fund: 4211 Cost Center: 2012A G.O. Capital Notes Activity Type/Code: Capital Projects Expenditure Hiahliahts This fund was closed in 2014. 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 Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 157 Table of Contents 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 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Fund Balance, January 1 $ - $ 112,513 $ 112,513 $ - Revenues Investment Income 6,347 - 1,000 - Other Sources Bond Proceeds 1,555,000 - - - Bond Premium 44,278 - - - Total Other Sources: 1,599,278 - - - Total Revenues and Other Sources: 1,605,625 - 1,000 - Total Available: 1,605,625 112,513 113,513 - Expenditures Purchased Services 35,040 - - - Capital Outlay 1,458,072 - 113,513 - Total Expenditures: 1,493,112 - 113,513 - Other Uses Bond Discount - - - - Total Expenditures and Other Uses: 1,493,112 - 113,513 - Fund Balance, December 31 $ 112,513 $ 112,513 $ - $ - Change in Fund Balance $ 112,513 $ - $ (112,513) $ - n/a 0% -100% n/a 158 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 This fund will be closed in 2015. $ 1,566,000 Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 159 Table of Contents City of Andover Capital Projects Funds 2016 G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ - Revenues Investment Income - Other Sources Bond Proceeds - Total Revenues and Other Sources: - Total Available: - Expenditures Purchased Services - Capital Outlay - Total Expenditures: - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 160 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ - Revenues Investment Income - Other Sources Bond Proceeds - Total Revenues and Other Sources: - Total Available: - Expenditures Purchased Services - Capital Outlay - Total Expenditures: - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 160 580,000 580,000 580,000 30,000 550,000 580,000 580,000 n/a n/a n/a 580,000 580,000 580,000 30,000 550,000 580,000 580,000 n/a n/a 580,000 580,000 580,000 30,000 550,000 580,000 580,000 n/a Fund: 4213 Cost Center: 2016 G.O. Capital Notes Activity Type/Code: Capital Projects Expenditure Hiahliahts The following is a list of equipment purchased with a 2016 Capital Note. Capital Note. Vehicle / Equipment Replacements Replacement - Small Extended Cab Pick Up #9 $ 30,000 Replacement - Fire Marshall Vehicle 40,000 Replacement - Breathing Air Compressor at St. #1 80,000 Replacement - Toro Groundmaster #559 45,000 Replacement - Toro Groundmaster #585 110,000 Replacement - Toro Groundmaster 4000-D #583 70,000 Replacement - Dump Truck w/ Snow Removal #196 200,000 $ 575,000 Table of Contents 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 2016 budget process it was determined that various capital equipment was necessary. ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 161 Table of Contents 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 $ 2,657,590 $ 3,546,286 $ 3,546,286 $ 4,065,817 377,733 3,559 2,431 77,119 74,282 535,124 897,275 20,000 3,000 - - 12,078 - 15,000 20,000 20,000 35,000 35,078 20,000 - 1,009,453 - 1,432,399 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 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 $ 2,657,590 $ 3,546,286 $ 3,546,286 $ 4,065,817 377,733 3,559 2,431 77,119 74,282 535,124 897,275 20,000 3,000 - - 12,078 - 15,000 20,000 20,000 35,000 35,078 20,000 - 1,009,453 - 1,432,399 35,000 1,044,531 20,000 4,089,989 3,581,286 4,590,817 4,085,817 543,703 25,000 25,000 - - 500,000 500,000 750,000 543,703 525,000 525,000 750,000 Total Expenditures and Other Uses: 543,703 Fund Balance, December 31 $ 3,546,286 Change in Fund Balance $ 888,696 33% 162 525,000 $ 3,056,286 $ (490,000) -14% 525,000 $ 4,065,817 $ 519,531 15% 750,000 $ 3,335,817 $ (730,000) -18% Fund: 4501 Cost Center: Tax Increment Projects Activity Type/Code: Capital Projects Expenditure Hiahliahts 2016 Budgeted expenditures include: Redevelopment Site Purchases $ 750,000 2015 Budgeted expenditures include: Administration $ 25,000 Redevelopment Site Purchases 500,000 $ 525,000 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 163 Table of Contents City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ 968,636 $ 705,751 $ 705,751 $ 787,847 Revenues Special Assessments 102,380 50,000 80,596 50,000 Investment Income 18,347 3,000 3,000 3,000 Total Revenues: 120,727 53,000 83,596 53,000 Other Sources Transfers In Total Revenues and Other Sources: 120,727 53,000 83,596 53,000 Total Available: 1,089,363 758,751 789,347 840,847 Expenditures Other Services and Charges 2,651 - 1,500 - Other Uses Operating Transfers Out 380,961 - - - Total Expenditures and Other Uses: 383,612 - 1,500 - Fund Balance, December 31 $ 705,751 $ 758,751 $ 787,847 $ 840,847 Change in Fund Balance $ (262,885) $ 53,000 $ 82,096 $ 53,000 -27% 8% 12% 7% 164 Fund: 4601 Cost Center: Permanent Improvement Revolving Activity Type/Code: Capital Projects Expenditure Hiahliahts No major expenditures are planned for 2016. The transfer for debt service in 2014 paid off the remaining PIR bonds. Table of Contents 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 $18.99 million of special assessments over the past 14 years. The annual cash flow of this fund is intended to eliminate unfunded projects through effective management of debt payments and project expenditures. ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 165 Table of Contents 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 $ 773,150 $ 235,423 $ 235,423 $ 5,262 Revenues Investment Income Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Fund Balance, January 1 $ 773,150 $ 235,423 $ 235,423 $ 5,262 Revenues Investment Income 12,009 1,500 1,500 - Miscellaneous - - - - Total Revenues: 12,009 1,500 1,500 - Other Sources Transfers In - - - - Total Revenues and Other Sources: 12,009 1,500 1,500 - Total Available: 785,159 236,923 236,923 5,262 Expenditures Purchased Services 8,426 - - - Capital Outlay 541,310 232,496 231,661 - Total Expenditures: 549,736 232,496 231,661 - Other Uses Operating Transfers Out - - - 5,262 Total Expenditures and Other Uses: 549,736 232,496 231,661 5,262 Fund Balance, December 31 $ 235,423 $ 4,427 $ 5,262 $ - Change in Fund Balance $ (537,727) $ (230,996) $ (230,161) $ (5,262) -70% -98% -98% -100% 166 Fund: 4901 Cost Center: 2010A G.O.Open Space Referendum Bonds Activity Type/Code: Capital Projects Expenditure Hiahliahts Over the past four years, four parcels have been purchased for the preservation of open space in the City of Andover. The remaining funds ($5,262) will be transferred to the Open Space Referendum Bonds Debt Service Fund to assist in the debt payments. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 167 Table of Contents This page left blank intentionally. 168 CITY OF ANDOVER, MINNESOTA 2016 ANNUAL BUDGET ENTERPRISE FUNDS DEFINITION: Table of Contents 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. 169 Table of Contents This page left blank intentionally. 170 Table of Contents City of Andover Enterprise Funds 2016 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 M ete rs Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 6,237,200 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest M ete rs Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 6,237,200 $ 6,606,934 $ 6,606,934 $ 6,943,640 4,823,394 4,954,705 4,894,705 4,912,500 115,425 57,000 57,000 56,000 12,592 13,000 13,000 13,000 3,425 3,500 3,500 3,500 560 16,000 16,000 16,000 55,978 67,000 67,000 67,000 5,011,374 5,111,205 5,051,205 5,068,000 20,737 58,249 58,249 85,096 5,032,111 5,169,454 5,109,454 5,153,096 11, 269, 311 11, 776, 388 11, 716, 388 12,096,736_ 915,923 972,417 972,417 1,000,820 197,815 280,200 254,350 289,200 2,122,902 2,051,624 2,018,064 2,192,448 - 99,500 99,500 - 828,807 831,487 831,487 833,101 4,065,447 4,235,228 4,175,818 4,315,569 596,930 596,930 596,930 596,930 4,662,377 4,832,158 4,772,748 4,912,499 Unrestricted Net Assets, December 31 $ 6,606,934 Change in Unrestricted Net Assets $ 369,734 6% 171 $ 6,944,230 $ 337,296 5% $ 6,943,640 $ 336,706 5% $ 7,184,237 $ 240,597 3% Table of Contents 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 M ete rs Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 2,521,106 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2014 2015 2015 2016 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest M ete rs Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 2,521,106 $ 2,795,147 $ 2,795,147 $ 3,006,987 2,286,243 2,397,686 2,337,686 2,345,484 45,394 15,000 15,000 15,000 12,592 13,000 13,000 13,000 3,425 3,500 3,500 3,500 171 6,000 6,000 6,000 54,838 67,000 67,000 67,000 2,402,663 2,502,186 2,442,186 2,449,984 20,737 58,249 58,249 85,096 2,423,400 2,560,435 2,500,435 2,535,080 4,944,506 5,355,582 5,295,582 5,542,067 418,313 431,808 431,808 446,234 163,797 222,200 200,050 229,700 588,192 677,400 670,500 703,800 - 4,500 4,500 - 828,807 831,487 831,487 833,101 1,999,109 2,167,395 2,138,345 2,212,835 150,250 150,250 150,250 150,250 2,149,359 2,317,645 2,288,595 2,363,085 Unrestricted Net Assets, December 31 $ 2,795,147 Change in Unrestricted Net Assets $ 274,041 11% 172 $ 3,037,937 $ 242,790 9% $ 3,006,987 $ 211,840 8% $ 3,178,982 $ 171,995 6% 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 2016 includes the rehabilitation of a well. Every seven years a pump is pulled and inspected for wear and then the well is televised to inspect its condition. Water meter costs are rising and starting to replace older meters. Department: Water Director/Manager: Utilities Supervisor Actual Current Budgeted Performance Measures 2014 2015 2016 Number of connections 6,418 6,475 6,545 Number of wells 8 8 8 Number of elevated storage tanks 2 2 2 Water Treatment Facility 1 1 1 Miles of water main 115 116 117 Number of hydrants 1,213 1,219 1,230 Number of valves 2,872 2,884 2,909 Department: Water Director/Manager: Utilities Supervisor Service Expenses By Category Expenses Per Connection Connections Monthly Annual ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual 2014 6,418 $ 27.53 $ 330.36 Current ,)nl ; Table of Contents Budgeted 2016 4.63 Budgeted om a .� 440,LJ4 229,700 414,300 289,500 833,101 150,250 $ 2,363,085 ■Personal SerNces ■Supplies 8 Materials OOther SerNces / Charges OPurchased SeMces ■Capital Outlay ■Debt SeMce ■Other Uses V,4/ J $ 29.45 $ 353.45 Budgeted ,)nla V,JVJ $ 30.09 $ 361.05 Actual Current Staffing Levels 2014 2015 FTE Equivalents 4.52 4.63 Actual Current Service Expenses 2014 2015 Personal Services $ 418,313 $ 431,808 Supplies & Materials 163,798 200,050 Other Services / Charges 379,780 392,300 Purchased Services 207,512 278,200 Capital Outlay - 4,500 Debt Service 800,615 831,487 Other Uses 150,250 150,250 TOTAL $ 2,120,268 $ 2,288,595 Service Expenses By Category Expenses Per Connection Connections Monthly Annual ADOPTED 2010 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual 2014 6,418 $ 27.53 $ 330.36 Current ,)nl ; Table of Contents Budgeted 2016 4.63 Budgeted om a .� 440,LJ4 229,700 414,300 289,500 833,101 150,250 $ 2,363,085 ■Personal SerNces ■Supplies 8 Materials OOther SerNces / Charges OPurchased SeMces ■Capital Outlay ■Debt SeMce ■Other Uses V,4/ J $ 29.45 $ 353.45 Budgeted ,)nla V,JVJ $ 30.09 $ 361.05 Table of Contents City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Unrestricted Net Assets, January 1 $ 3,358,463 $ 3,642,961 $ 3,642,961 $ 3,754,435 Revenues Charges for Services 2,116,453 2,134,919 2,134,919 2,142,281 Interest 68,248 40,000 40,000 40,000 Penalties 389 10,000 10,000 10,000 Miscellaneous 782 - - - Total Revenues: 2,185,872 2,184,919 2,184,919 2,192,281 Other Sources Gain on the Sale of Capital Assets - - - - Total Revenues and Other Sources: 2,185,872 2,184,919 2,184,919 2,192,281 Total Available: 5,544,335 5,827,880 5,827,880 5,946,716 Expenditures Personal Services 301,695 329,036 329,036 337,491 Supplies and Materials 10,446 29,800 28,200 31,300 Other Services and Charges 1,142,553 1,182,439 1,179,029 1,316,313 Capital Outlay - 90,500 90,500 - Total Expenditures: 1,454,694 1,631,775 1,626,765 1,685,104 Other Uses Transfers Out 446,680 446,680 446,680 446,680 Total Expenditures and Other Uses: 1,901,374 Unrestricted Net Assets, December 31 $ 3,642,961 Change in Unrestricted Net Assets $ 284,498 8% 174 2,078,455 2,073,445 $ 3,749,425 $ 3,754,435 $ 106,464 $ 111,474 3% 3% 2,131,784 $ 3,814,932 $ 60,497 2% 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 Current Budgeted In Budgeted 2016, the Metropolitan Waste Control Commission has increased the waste fee by 13% ($127,000). $ 301,697 $ 329,036 $ 337,491 Actual Current Budgeted Performance Measures 2014 2015 2016 Number of connections 7,324 7,381 7,440 Number of lift stations 9 9 9 Miles of sewer main 95 96 97 Number of sewer manholes 2.275 2.289 2.300 Staffing Levels FTE Equivalents Service Expenses Personal Services Supplies & Materials Other Services / Charges Purchased Services Capital Outlay Other Uses TOTAL Table of Contents Department: Sanitary Sewer Director/Manager: Utility Supervisor Actual Current Budgeted Actual Current Budgeted 2014 2015 2016 $ 301,697 $ 329,036 $ 337,491 10,447 28,200 31,300 92,147 96,042 97,652 1,050,405 1,082,987 1,218,661 - 90,500 - 446,680 446,680 446,680 $ 1,901,376 $ 2,073,445 $ 2,131,784 Service Expenses By Category Expenses Per Connection Connections Monthly Annual -------------------------- ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 175 .Personal Services ■Supplies 8 Materials oother services / Charges OPurchased Services ■Capital Outlay ■Other Uses Actual Current Budgeted 2014 2015 2016 7,324 7,381 7,440 $ 21.63 $ 23.41 $ 23.88 $ 259.61 ------------------------------ $ 280.92 $ 286.53 Table of Contents City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 $ 357,631 $ 168,826 $ 168,826 $ 182,218 Revenues Charges for Services Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Unrestricted Net Assets, January 1 $ 357,631 $ 168,826 $ 168,826 $ 182,218 Revenues Charges for Services 420,698 422,100 422,100 424,735 Interest 1,783 2,000 2,000 1,000 Miscellaneous 358 - - - Total Revenues: 422,839 424,100 424,100 425,735 Other Sources Transfers In - - - - Total Revenues and Other Sources: 422,839 424,100 424,100 425,735 Total Available: 780,470 592,926 592,926 607,953 Expenditures Personal Services 195,915 211,573 211,573 217,095 Supplies and Materials 23,572 28,200 26,100 28,200 Other Services and Charges 392,157 191,785 168,535 172,335 Capital Outlay - 4,500 4,500 - Total Expenditures: 611,644 436,058 410,708 417,630 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 611,644 436,058 410,708 417,630 Unrestricted Net Assets, December 31 $ 168,826 $ 156,868 $ 182,218 $ 190,323 Change in Unrestricted Net Assets $ (188,805) $ (11,958) $ 13,392 $ 8,105 -53% -7% 8% 4% 176 Table of Contents Fund: 5300 - Storm Sewer Department: Storm Sewer Cost Center: 48300 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 Additional funding was budgeted for unexpected emergencies. Actual Staffing Levels 2014 FTE Equivalents 2.25 Actual Current Budgeted Performance Measures 2014 2015 2016 Number of accounts 10,626 11,511 11,600 Mileage of storm lines maintained 75 76 77 Maint. of catch basins & manholes 3,789 3,819 3,850 Maint. of sedimentation ponds 294 259 200 Maint. of culverts 370 368 368 Actual Staffing Levels 2014 FTE Equivalents 2.25 Service Expenses By Category Expenses Per Customer Customers Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 177 Actual IM4 A $ 4.80 $ 57.56 Current Actual Service Expenses 2014 Personal Services $ 195,915 Supplies & Materials 23,572 Other Services / Charges 60,428 Purchased Services 331,728 Capital Outlay - TOTAL $ 611,643 Service Expenses By Category Expenses Per Customer Customers Monthly Annual ADOPTED 2016 BUDGET CITY OF ANDOVER, MINNESOTA 177 Actual IM4 A $ 4.80 $ 57.56 Current Budgeted 2015 2016 2.45 2.45 Current 'fl14G Budgeted 'fl14C y G I I,J/ J 26,100 50,535 118,000 4,500 $ 410,708 y G I I, V.7J 28,200 50,985 121,350 $ 417,630 ®Personal Services WSupplies & Matenals OCther Services / Charges OPurchased Services Current Budgeted 'fl14G Ifl1AC $ 2.97 $ 3.00 $ 35.68 $ 36.00 Table of Contents This page left blank intentionally. 178 CITY OF ANDOVER, MINNESOTA 2016 ANNUAL BUDGET INTERNAL SERVICE FUNDS DEFINITION: Table of Contents 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. 179 Table of Contents This page left blank intentionally. 180 Table of Contents City of Andover Internal Service Funds 2016 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 $ 677,192 $ 613,684 $ 613,684 $ 560,071 1,078,928 1,111,844 12,296 1,500 123,144 - 1,214,368 1,113,344 1,111,844 1,500 1,113,344 1,111,844 1,500 1,113,344 Total Revenues and Other Sources: Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In $ 677,192 $ 613,684 $ 613,684 $ 560,071 1,078,928 1,111,844 12,296 1,500 123,144 - 1,214,368 1,113,344 1,111,844 1,500 1,113,344 1,111,844 1,500 1,113,344 Total Revenues and Other Sources: 1,214,368 1,113,344 1,113,344 1,113,344 Total Available: 1,891,560 1,727,028 1,727,028 1,673,415 Expenditures and Other Uses Personal Services 376,250 391,930 399,213 419,835 Supplies and Materials 397,664 386,950 386,950 388,010 Other Services and Charges 503,962 359,872 380,794 360,122 Total Expenditures: 1,277,876 1,138,752 1,166,957 1,167,967 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 1,277,876 1,138,752 1,166,957 1,167,967 Unrestricted Net Assets, December 31 $ 613,684 $ 588,276 $ 560,071 $ 505,448 Change in Unrestricted Net Assets $ (63,508) $ (25,408) $ (53,613) $ (54,623) -9% -4% -9% -10% 181 Table of Contents 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: $ 359,993 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 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: $ 359,993 $ 322,692 $ 322,692 $ 322,705 Change in Unrestricted Net Assets $ (37,301) $ 13 $ 13 699,603 720,592 720,592 720,592 7,156 500 500 500 5,250 - - - 712,009 721,092 721,092 721,092 721,092 712,009 721,092 721,092 1,072,002 1,043,784 1,043,784 1,043,797 233,649 239,097 239,097 256,658 367,551 360,960 360,960 360,960 148,110 121,022 121,022 121,272 749,310 721,079 721,079 738,890 738,890 749,310 721,079 721,079 Unrestricted Net Assets, December 31 $ 322,692 $ 322,705 $ 322,705 $ 304,907 Change in Unrestricted Net Assets $ (37,301) $ 13 $ 13 $ (17,798) -10% 0% 0% -6% 182 Fund: 6100 Cost Center: Central Equipment Activity Type/Code: Internal Service Fund Expenditure Hiahliahts The primary increase in 2016 is the reallocation of staffing from Recycling to Central Equipment. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 183 Table of Contents 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: $ 317,199 Actual Adopted Estimate Adopted Description 2014 2015 2015 2016 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: $ 317,199 $ 290,992 $ 290,992 $ 237,366 Change in Unrestricted Net Assets $ (26,207) $ (25,421) $ (53,626) 379,325 391,252 391,252 391,252 5,140 1,000 1,000 1,000 117,894 - - - 502,359 392,252 392,252 392,252 392,252 502,359 392,252 392,252 819,558 683,244 683,244 629,618 142,601 152,833 160,116 163,177 30,113 25,990 25,990 27,050 355,852 238,850 259,772 238,850 528,566 417,673 445,878 429,077 429,077 528,566 417,673 445,878 Unrestricted Net Assets, December 31 $ 290,992 $ 265,571 $ 237,366 $ 200,541 Change in Unrestricted Net Assets $ (26,207) $ (25,421) $ (53,626) $ (36,825) -8% -9% -18% -16% 184 Fund: 6100 Cost Center: Central Equipment Activity Type/Code: Internal Service Fund Expenditure Hiahliahts The primary increase in 2016 is the reallocation of staffing from Recycling to Central Equipment. Table of Contents 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA 185 Table of Contents This page left blank intentionally. 186 Table of Contents CITY OF ANDOVER Budget Year 2016 Operating Transfers General Fund Water EF S 150.250 5 - General Fund Admin Allocation Sewer EF 46.680 General Fund Admin Allocation Total General Fund 196,930 Special Revenue Funds (SRFI Community Center SRF 2012C G.O. Abatement Bonds DSF 371,598 Debt Service Allocation Right of Way Management/ Utility SRF Road and Bridge CPF 6,800 Roadway Degredation Total Special Revenue Funds 378,398 Debt Service Funds (DSFI 2012B G.O. Capital Improv Refunding Bonds DSF Building CPF 104,123 Close Debt Service Fund 2012C G.O. Abatement Bonds DSF Community Center SRF 371,598 Debt Service Allocation 2010A G.O. Open Space Referendum Bonds DSF 2010A G.O. Open Space Referendum Bonds CPF 5,262 Close Capital Projects Fund Total Debt Service Funds 376,860 104,123 Capital Projects Funds (CPFI Water Trunk CPF Water EF 85,096 Debt Service Allocation Sewer Trunk CPF Sewer EF 400,000 Replacement Reserve Road and Bridge CPF Right of Way Management/ Utility SRF 6,800 Roadway Degredation Building CPF 2012B G.O. Capital Improv Refunding Bonds DSF 104,123 Close Debt Service Fund 2010A G.O. Open Space Referendum Bonds CPF 2010A G.O. Open Space Referendum Bonds DSF 5,262 Close Capital Projects Fund Total Capital Projects Funds 510,923 90,358 Enterprise Funds (EFI Water EF Water Trunk CPF 85,096 - Debt Service Allocation General Fund 150,250 General Fund Admin Allocation 85,096 150,250 Sewer EF General Fund - 46,680 General Fund Admin Allocation Sewer Trunk CPF 400,000 Replacement Reserve 446,680 Total Enterprise Funds 85,096 596,930 Total All Funds $ 1,169,809 $ 1,169,809 187 CITY OF ANDOVER 2016 - 2020 CIP Development Calendar Date Activity February 24, 2015 2016 - 2020 CIP Council Workshop to determine CIP guidelines. March 3, 2015 Council adopts 2016 Budget Development Guidelines. March 24, 2015 Council discussion of CIP priorities for 2016 — 2020. April 4, 2015 Draft 2016 - 2020 CIP Calendar. April 4 - May 1, 2015 Prepare base CIP Sheets. April 9, 2015 Vehicle Purchasing Committee review of CIP equipment. April 21, 2015 2016 - 2020 Capital Improvement Plan Discussion May 7, 2015 CIP kick-off meeting with Department Heads to discuss CIP sheet content. May 8, 2015 Projected cash flow statements prepared. May 26, 2015 City Council progress update and Council CIP priority discussion. June 1, 2015 All projects updated in CIP program. June 11, 2015 Review projects — new and shifts. June 23, 2015 City Council progress update and Council CIP priority discussion. July - August, 2015 Commission and Committee review. July 1, 2015 CIP project sheets completed. July 6, 2015 CIP project sheets staff initial review. July 7, 2015 Vehicle Purchasing Committee review of CIP equipment. July 21, 2015 City Council review of City Utilities projects. August 4, 2015 CIP project sheet staff final review. August 10 - 21, 2015 Preparation of final draft of 2016 - 2020 CIP for Council Workshop. August 25, 2015 City Council review of draft 2016 - 2020 CIP. September 22, 2015 Council Workshop — progress report; public comment update. October 20, 2015 City Council holds 2016 - 2020 CIP public hearing. October 20, 2015 City Council adopts 2016 - 2020 CIP. 188 Responsibility 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 City Council / Staff Admin / Department Heads Department Heads Admin / Department Heads Vehicle Purchasing Committee City Council / Staff Admin / Department Heads Finance City Council / Staff City Council / Staff City Council City Council Table of Contents Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 Building 16-42300-01 Replacement - Small Extended Cab Pick Up #9 $ 30,000 Replace Unit #9, a 2005 Chevrolet Colorado pick up truck with 117,000 miles. 19-42300-01 Replacement - Small Extended Cab Pick Up #8 $ - $ - $ - $ 35,000 $ Replace Unit #8, a 2004 Chevrolet Colorado pick up truck with 89,000 miles. Central Equipment 18-48800-01 Replacement - Service Truck #371 $ - $ - $ 40,000 - Replace Unit #371, a 2001 S 10 Ext Cab 4x4 truck with 97,790 miles. The replacement truck would be a crew cab with a tailgate lift. Community Center 16-44300-01 Replacement - Rink Flooring $ 36,000 - Replacement of all rubber flooring in the ice arena locker rooms and hallways. 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. 17-44000-02 Replacement - Exterior Garbage/Bike Racks/Tables $ - $ 25,000 - Replace exterior garbage cans, bike racks and picnic tables. 17-44000-03 Replacement - Point of Sale (POS) System $ - $ 8,000 - Upgrading all cash registers to POS software/hardware. 17-44000-04 Replacement - Carpeting $ - $ 8,000 $ 18,000 - Replacement of carpet in the main entrance and field house foyer. 17-44000-05 Exterior Painting $ - $ 6,000 - Painting all the cables, pipes and supports at the front entrance areas on both the West and East side of the building. 17-44000-06 New - ACC Truck $ - $ 30,000- A new vehicle to haul equipment to and from the Community Center and concession items as well. 17-44200-01 Replacement - Skate Sharpener/Rental Skates $ - $ 10,000 - Replacement of the current skate sharpener and older rental skates. 17-44300-01 Replacement - Ice Arena Refridgeration System $ - $ 1,000,000 - Tied to the building expansion, as the R22 is phased out we will need to look at a new compressor system for the rink floor. 17-44300-02 Replacement - Heat Exchangers - Munters Unit $ - $ 15,000 - Replacement of the heat exchangers in the Munters unit that heats the ice arena. 17-44300-03 Replacement - Ice Arena Locker Room Hardware $ - $ 10,000 - Replace shelves, clothes hooks and white boards in the ice arena locker rooms. 189 Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN Replace the electric edger used for ice maintenance ISL 2016 2017 2018 2019 2020 17-44400-01 Replacement - Pickelball Inserts/Net System $ - $ 10,000 $ - $ - $ Drill holes in the fieldhouse to use pickle ball post inserts, similar to the volleyball post inserts. 18-44000-01 Replacement - Kaivac Cleaning System $ - $ - $ 10,000 $ - $ - Replacement of the kaivac cleaning system that is used to clean bleachers, player box areas and bathrooms. It includes a power washer and wet vac system. 18-44300-01 Replacement - Zamboni Battery Pack $ - $ - $ 14,000 $ - $ - Replace the battery pack for the electric zamboni. 18-44300-02 Replacement - Zamboni Room Water Heater $ - $ - $ 25,000 $ - $ - Replace the water heater that provides hot water to the zamboni room. 18-44300-03 Replacement - Ice Rink Dividers $ - $ - $ 8,000 $ $ Rink dividers are used by the young kids to split the rink up into thirds. 18-44400-03 New Inflatables $ - $ - $ 10,000 $ $ Inflatables (jumpers) are used in the field house and are a big part of our tot programs and birthday parties. 19-44000-01 Replacement - Camera/Security System $ - $ - $ - $ 12,000 $ Upgrade all indoor cameras from coax to digital. 19-44000-02 Replacement - All Community Center Doors $ - $ - $ $ 75,000 $ Replace all steel and wooden doors within the facility. 19-44300-01 Refacing Rink Boards $ - $ - $ $ 25,000 $ Replace the white poly and yellow kick plates on the rink boards along with new netting above the glass on the ends. 19-44300-02 Paint Ice Arena Ceiling $ - $ - $ $ 25,000 $ Repaint the ice arena ceiling. 19-44400-01 Replacement - Field House Floor $ - $ - $ $ 50,000 $ - Replace the floor in the field house. 20-44000-01 Replacement - Scissor Lift $ - $ - $ $ - $ 15,000 Replacement of the scissor lift, which is used by a few different departments throughout the City. 20-44000-02 Replacement - Lobby Furniture $ - $ - $ $ $ 15,000 Replace lobby furniture including tables, chairs and garbage cans. 20-44000-03 Replacement - Community Center Roof Replacement $ - $ - $ $ $ 500,000 Full roof replacement (rubber membrane). 20-44300-01 Replacement - Electric Edger $ - $ - $ $ $ 8,000 Replace the electric edger used for ice maintenance ISL Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 Engineering 16-41600-01 New Development Projects $ 150,000 $ 160,000 $ 160,000 $ 165,000 $ 175,000 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. 16-41600-02 Pedestrian Trail Maintenance $ 45,000 $ 50,000 $ 55,000 $ 60,000 $ 65,000 This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system. 16-41600-03 New Pedestrian Trail and Sidewalk Segments $ 230,000 $ 144,000 $ 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 Crosstown Blvd from Coon Creek Bridge to South Coon Creek Drive ($175,000). 2016 - 5' concrete sidewalk along Bunker Lake Blvd from Yukon St to Hidden Creek North Park ($55,000). 2017 - 8' bituminous trail along Andover Blvd from Bluebird St to Vale St ($144,000). 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). 2020 - 8' bituminous trail from Kensington Estates 7th Addition to Andover Station North ($245,000 - Grant). 16-41600-04 Pedestrian Trail Reconstruction $ 50,000 $ 52,500 $ 55,000 $ 57,500 $ 60,000 As the City's trail system ages and deteriorates, reconstruction of segments becomes necessary to maintain the high quality trail system that is so sought after in Andover. Facility Management 16-41900-01 Annual Parking Lot Maintenance $ 50,000 $ 90,000 $ 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 crack sealed and then fog sealed in 2017. 16-41900-02 Public Works/Community Center Master Planning $ 25,000 $ - $ Continue working with a consultant to prepare a Master Plan for future Public Works and Community Center expansion. 17-41900-01 Roof Replacement - Public Works $ - $ 400,000 Remove and replace the existing roof membrane on the Public Works building. 17-41900-02 Carpet / Tile Replacement $ - $ 10,000 $ - $ 10,000 $ The replacement of carpet and the 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. 19-41900-01 Building A - Seal Floor Apply a sealant to the cement floor in Building A (large garage). 191 25,000 Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 19-41900-02 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 current 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. 19-41900-03 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. 19-41900-04 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. 19-41900-05 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 cross under Crosstown Boulevard to Sunshine Park Facilities or just connect to the city's trail system. 19-41900-06 Memorial - Veterans Memorial $ - $ - $ - $ 10,000 $ - A memorial to honor Andover veterans. 20-41900-01 Surface Seal All Brick Structures $ - $ - $ - $ - $ 85,000 A surface application would be initiated for all brick and/or block municipal buildings. The buildings include: City Hall, Public Works, Fire Station 1, 2 & 3, Sunshine Park Building, Prairie Knoll Building, Andover Station North Park Building, Community Center and all utility department buildings such as pump houses and treatment facility. Fire 16-42200-01 Replacement - Turnout Gear $ 19,000 $ 20,000 $ 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. 16-42200-02 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. 16-42200-03 Replacement - Fire Marshall Vehicle $ 40,000 Replace Unit #4801, a 1997 S 10 Blazer with over 68,846 miles and used by the Fire Marshall. 16-42200-04 Replacement - 800 MHz Radios $ 35,000 $ 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. 192 Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 16-42200-05 Replacement - Breathing Air Compressor FS #1 $ 80,000 $ - $ - $ - $ - 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 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. 18-42200-01 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. 18-42200-02 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 function 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 Technoloav 16-41420-01 New Server Addition/Replacement $ 20,000 $ - $ - $ - $ - Add to or replace current VMWare server farm. Park & Ree - ODerations 16-45000-01 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: 2016 - Pine Hills South and Forest Meadows 2017 - Shadowbrook East 2018 - Chesterton Commons 16-45000-02 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. 16-45000-03 Replacement - Toro Groundsmaster #559 $ 45,000 $ - $ - $ - $ - Replace Unit #559, a 1999 Toro Groundsmaster 325 with 2,209 hours. 16-45000-04 Replacement - Toro Groundsmaster #585 $ 110,000 $ - $ $ $ Replace Unit #585, a 2001 Toro Groundsmaster 580-D with 1,780 hours. 16-45000-05 Replacement - Toro Groundsmaster 4000-D #583 $ 70,000 $ - $ $ $ Replace Unit #583, a 2001 Toro 4000 with 2,300 hours. 18-45000-01 Replacement - One Ton Crew Cab Pickup #502 $ - $ - $ 50,000 $ $ Replace Unit #502, a 2002 F350 crew cab pickup with 70,505 miles on it. 193 CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 18-45000-02 Replacement - One Ton Crew Truck w/ Plow #599 $ - $ Replace unit #599, a 2000 Ford F450 one ton truck with a snow plow with 74,000 miles on it. 2018 2019 - $ 80,000 $ Table of Contents 2020 18-45000-03 New - Wood Chipper 3 -pt Attachment $ - $ - $ 15,000 $ - $ - Purchase a 3 -point chipper that will be hooked up to one of the smaller utility tractors to be used in the open space areas and along the trail system where the big machine can not access. 18-45000-04 New - "V" Snow Plow for #09-589 $ - $ - $ 15,000- A new heavier non -directional "V" plow to put on the front of a trail machine. 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 - Trailer #T-555 $ - $ - $ - $ 16,000 $ - Replace Unit #T-555, a 1993 trailer that has gone under a number of refurberations. It would be replaced with a new galvanized trailer. 20-45000-01 New - Trail Machine $ - $ - $ - $ - $ 150,000 Add another trail machine to the fleet to assist in the clearing of snow in the winter and keeping them clean throughout the rest of the year. 20-45000-02 New - Half Ton Truck $ - $ - $ - $ - $ 25,000 Add a 1/2 ton truck to the fleet to pull around a smaller trailer with the ballfield groomer and other small equipment that is needed in the Parks. Park & Ree - Proiects 16-45001-01 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. 16-45001-02 Irrigation Projects - Small Parks $ - $ 20,000 $ 20,000 $ 20,000 $ - Irrigate a small park which has playground equipment or other amenities. 16-45001-03 Timber Trails Park - Renovation $ 200,000 - It is recommended to renovate/upgrade the existing baseball field with new fencing where necessary. A well and irrigation system will be necessary to provide a playable surface. The existing soccer field will need to be regraded and reseeded along with installing new irrigation. 16-45001-04 Terrace Park Irrigation and Water Service $ 35,000- hrigate the existing ballfield and surrounding amenities. 16-45001-05 Sunshine Park Scoreboard Wiring and Design $ 23,000 - Design and wiring of the scoreboards for the south and middle soccer/football fields will need to be done. The scoreboards are planned to be installed in 2015 with the wiring to be done in 2016. An electrical engineer will be necessary in designing of the scoreboards. 17-45001-01 Pine Hills North - Phase II $ - $ 100,000 $ - $ - $ 400,000 Phase II of the new sporting complex will include the construction of a storage building (2017) funded by donations from the athletic associations as recommended by the Park and Recreation Commission. 2020 includes the paving of the existing and/or newly created parking lots. 194 Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 17-45001-02 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. A well and irrigation system will be necessary to provide a playable surface. 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, paving the existing parking lot with concrete curb and gutters. Pickleball in one of the hockey rinks has also been discussed. 19-45001-01 Langseth Park Trail Improvement $ - $ - $ - $ 20,000 $ - Construct a binuminus trail from 175th Lane to Langseth Park. 19-45001-02 Wild Iris Irrigation and Water Service $ - $ - $ $ - $ 42,500 Irrigate the existing ballfield and surrounding amenities. Planning & Zoning 18-41500-01 Replacement - Planning Vehicle #7 $ - $ $ 25,000 $ $ - Replace Unit #7, a 1999 S10 Blazer with over 98,557 miles. Sanitary Sewer 17-48200-01 Sanitary Sewer Extensions $ - $ 105,000 $ 500,000 - Sanitary sewer extensions are necessary in areas within the MUSA boundary for future development. The following projects are proposed: 2017 - Upgrades to Aztec Estates Lift Station ($105,000). 2018 - Extend sanitary sewer trunk along Crosstown Blvd from just west of the railroad tracks east to Prairie Road ($500,000). 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. 18-48200-01 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 a part of the Crosstown Boulevard Improvements Project. 18-48200-02 Replacement - One Ton Utility Truck #69 $ - $ $ 90,000 - Replace Unit #69, a 2006 Ford F450 utility truck with a box and crane that has 109,000 miles on it. Storm Sewer 16-48300-01 Storm Sewer Improvements $ 50,000 $ 55,000 $ 60,000 $ 60,000 $ 62,000 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. 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 $ - $ - $ - $ 200,000 $ - Replace Unit #169, a 2000 Elgin sweeper with approximately 4,232 hours. 195 Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 Street Signs 17-43300-01 Sign Design Software & Plotter $ - $ 10,000 $ - Replace old sign design software and plotter with updated software and plotter to design and make warning and regulatory signs. Streets / Highways 16-43100-01 Annual Street Seal Coat Project $ 460,000 $ 475,000 $ 750,000 $ 585,000 $ 635,000 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: 2016 - Zone 2 2017 - Zone 3 2018 - Zone 4 2019 - Zone 5 2020 - Zone 6 16-43100-02 Annual Street Crack Seal Project $ 230,000 $ 250,000 $ 230,000 $ 250,000 $ 420,000 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: 2016 - Zone 3 2017 - Zone 4 2018 - Zone 5 2019 - Zone 6 2020 - Zone 7 16-43100-03 Annual Pavement Markings $ 40,000 $ 42,000 $ 44,000 $ 47,000 $ 50,000 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. 16-43100-04 Annual Curb Replacement $ 50,000 $ 52,000 $ 54,000 $ 56,000 $ 58,000 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. 16-43100-05 Municipal State Aid Routes / New & Reconstruct $ 2,600,000 $ 655,000 $ 340,000 $ 1,290,000 $ 440,000 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards: 2016 - 173rd Lane (Tulip St to Round Lake Blvd) $320,000 2016 - 167th Ave Construction (east of Hanson Blvd) $1,500,000 ($750,000 City Cost) 2016 - Bunker Lake Blvd (Crane St to the eastern border) $780,000 2017 - University Ave Overlay (157th to 161st) $125,000 2017 - 168th Lane (Crocust to Verdin) $530,000 2018 - 143rd Ave Reconstruction (Xenia to Round Lake Blvd) $345,000 2019 - University Ave Reconstruction (Andover Blvd to 157th) $690,000 2019 - Hanson Blvd (Jay to Crosstown Blvd) $600,000 2020 - Crosstown Blvd Overlay (Hanson Blvd to 161 st Ave) $440,000 196 Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 16-43100-06 Annual Street Reconstruction $ 693,000 $ 1,221,000 $ 851,000 $ 1,113,000 $ 1,061,000 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: 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 2019 - Area east of Crooked Lake 2020 - Alladin Acres, Enchanted Drive Area 16-43100-07 Intersection Upgrades $ - $ 275,000 $ 2,085,000 $ - $ The following are projects that are tentatively identified for improvements and the exact timing is subject to change: 2017 - Crosstown Blvd / Crosstown Dr Intersection. Improvements could include separating the southbound right turning movement onto Crosstown Dr to improve safety. ($275,000) 2018 -Nightingale St/ Crosstown Blvd Intersection. A round -about with two pedestrian underpasses is being submitted for HSIP grant funding. Timing of this project would be dependant upon award of a grant ($1,8000,000). Grants typically require a minimum of 10% City match. 2018 - Construction of a traffic signal at South Coon Creek Dr and Round Lake Blvd ($285,000) if warrants are met. 16-43100-08 Gravel Road Improvements $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Gravel roadways within the City are in need of annual improvements; including grading, adding material and dust control. Over time and with snow plowing operations, the gravel roadway settles and additional material is needed to maintain the traveling surface. 16-43100-09 Replacement - Dump Truck w/ Snow Removal #196 $ 200,000 $ - $ - $ - $ - Replace unit #196, a 1996 dump truck with snow removal equipment with 54,428 miles on it. 18-43100-01 Street Overlays $ - $ - $ 600,000 $ - $ - The City of Andover has implemented 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 18-43100-02 Replacement - One Ton Truck w/ Plow #134 $ - $ - $ 80,000 - Replace Unit #134, a 2004 Ford F450 dump truck with a 9' snow plow with 77,560 miles on it. 18-43100-03 New - One Ton Truck w/ Regular Box w/ Lift & Plow $ - $ - $ 40,000 - Add a one ton 4x4 truck with a regular box, tail gait lift and snow plow. 18-43100-04 New - Bobcat Paver $ - $ - $ 50,000 $ $ Add a bobcat -style paver for patching roads, shoulders and trails. 19-43100-01 Replacement - Dump Truck w/ Snow Removal #200 $ - $ - $ $ 220,000 $ Replace Unit #200, a 2000 dump truck with snow removal equipment with 60,000 Vs on it. Table of Contents CITY OF ANDOVER 2016 - 2020 CAPITAL IMPROVEMENT PLAN 2016 2017 2018 2019 2020 20-43100-01 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. 20-43100-02 Replacement - Bobcat S185 #120 $ - $ - $ - $ $ 50,000 Replace Unit #120, a 2004 Bobcat S185 high-flow hydraulics with 1,134 hours. 20-43100-03 Replacement - One Ton Truck w/ Plow #133 $ - $ - $ - $ - $ 80,000 Replace Unit #133, a 2004 Ford F450 dump truck with a 9' snowplow and aluminum box cover with 44,194 miles on it. 20-43100-04 New - Large Tractor and Snow Blade $ - $ - $ - $ - $ 75,000 Add a new large tractor with a pusher blade/bucket to assist in loading wood chips and moving snow. Water 16-48100-01 Rehabilitation of Wells $ 50,000 $ 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. 17-48100-01 Replacement - Dodge Dakota #95 $ - $ 30,000 $ - $ - $ - Replace Unit #95, a 2000 Dodge Dakota pick up with 125,000 miles on it. 18-48100-01 Water Meter Reading System AMI/AMR $ - $ - $ 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. 18-48100-02 Replacement - 3/4 Ton Utility Truck #95 $ - $ - $ 60,000 $ - $ - Replace Unit #66, a 2006 Ford F250 pickup with utility box that has 114,000 miles. 18-48100-03 Replacement - Side by Side UTV #70 $ - $ - $ 48,000 $ - $ - Replace Unit #70, a 2004 IR 5600 Toolcat with 1,155 miles on it. The replacement will need to have more power to do the jobs more efficiently. It shall be able to haul materials into and out of a job with ease. It should be equipped with hydraulics to use different types of attachments such as a plow, snowblower, auger and others. 18-48100-04 Water Main Improvements $ - $ - $ 640,000 $ 710,000 $ - Install water main, hydrants, and service lines to provide water service to existing areas in the City that are not currently served with City water. The following projects are proposed to be constructed along with the planned reconstruction of the streets in these areas: 2018 - 143rd Ave (Round Lake Blvd to Woodbine) $140,000 2018 - Andover Boundary Commission Plat 1 & Shirley Estates $500,000 2019 - Area east of Crooked Lake $710,000 198 Date of Rate of Description Issue Maturity Interest Governmental Activities General Obligation Abatement Bonds CITY OF ANDOVER Summary of Outstanding Bond Issues 2015-2016 Outstanding Outstanding at 2015 at Issued 12/31/2014 Retired Issued 12/31/2015 Table of Contents Outstanding 2016 at Retired Issued 12/31/2016 2012C G.O. Abatement Bonds 12/27/2012 2/1/2031 1.00-3.00% 17,315,000 16,675,000 (835,000) 15,840,000 (845,000) 14,995,000 Certificates of Indebtedness/Capital Notes 600,000 TOTALS $ 6,310,000 $ (590,000) $ $ 5,720,000 $ (615,000) $ $ 5,105,000 TOTALS $ 27,405,000 2012A G.O. Equipment Certificates 3/22/2012 2/1/2017 2.00% 585,000 585,000 585,000 (50,000) 535,000 2014A G.O. Equipment Certificates 5/29/2014 2/1/2020 1.50-2.00% 1,555,000 1,555,000 (225,000) 1,330,000 (260,000) 1,070,000 Subtotal - Certificates of Indebtedness 2,140,000 (225,000) 1,915,000 (310,000) 1,605,000 Capital Improvement Bonds 2012B G.O. Cap Improvement Ref Bonds 3/22/2012 2/1/2016 2.00% 1,570,000 970,000 (500,000) 470,000 (470,000) - Subtotal - Capital Improvement Bonds 970,000 (500,000) 470,000 (470,000) State Aid Bonds: 2009A G.O. State Aid Street Refunding Bonds 3/26/2009 2/1/2015 2.25-2.80% 955,000 60,000 (60,000) - - Referendum Bonds: 2010A G.O. Open Space Referendum Bonds 2/18/2010 2/1/2022 2.00-3.125% 1,660,000 1,250,000 (145,000) 1,105,000 (145,000) 960,000 TOTALS $ 21,095,000 $ (1,765,000) $ $ 19,330,000 $ (1,770,000) $ $ 17,560,000 Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 3/13/2007 2/1/2023 4.00-4.25% 2009A G.O. Water Revenue Bonds 3/26/2009 2/1/2024 2.00-4.25% Subtotal - General Obligation Bonds 6,570,000 5,580,000 (525,000) 5,055,000 (550,000) 4,505,000 1,025,000 730,000 (65,000) 665,000 (65,000) 600,000 TOTALS $ 6,310,000 $ (590,000) $ $ 5,720,000 $ (615,000) $ $ 5,105,000 TOTALS $ 27,405,000 $ (2,355,000) $ $ 25,050,000 $ (2,385,000) $ $ 22,665,000 M Table of Contents CITY OF ANDOVER Debt Service Summary Total Less 2016 2017 2018 2019 2020 2021-2025 2026-2030 2031 Payments Interest Total Governmental Activities General Obligation Abatement Bonds 2012C G.O. Abatement Bonds 1,216,506.26 1,213,731.26 1,211,481.26 1,208,931.26 1,215,981.26 6,058,200.05 6,044,746.90 1,218,000.00 19,387,578.25 (3,547,578.25) 15,840,000.00 Certificates of Indebtedness 2012A G.O. Equipment Certificates 61,200.00 540,350.00 - - - 601,550.00 (16,550.00) 585,000.00 2014A G.O. Equipment Certificates 283,350.00 278,800.00 278,550.00 278,200.00 277,750.00 1,396,650.00 (66,650.00) 1,330,000.00 344,550.00 819,150.00 278,550.00 278,200.00 277,750.00 1,998,200.00 (83,200.00) 1,915,000.00 Capital Improvement Bonds 2012B G.O. Cap Improvement Ref Bonds 474,700.00 - - - - 474,700.00 (4,700.00) 470,000.00 Referendum Bonds 2010A G.O. Open Space Referendum Bonds 173,942.50 175,657.50 176,841.25 177,507.50 172,827.50 345,526.25 1,222,302.50 (117,302.50) 1,105,000.00 2,209,698.76 2,208,538.76 1,666,872.51 1,664,638.76 1,666,558.76 6,403,726.30 6,044,746.90 1,218,000.00 23,082,780.75 (3,752,780.75) 19,330,000.00 Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 744,546.26 742,146.26 743,846.26 739,646.26 739,546.26 2,218,666.89 5,928,398.19 (873,398.19) 5,055,000.00 2009A G.O. Water Revenue Bonds 88,555.00 86,605.00 89,492.50 87,130.00 89,498.75 347,143.75 788,425.00 (123,425.00) 665,000.00 833,101.26 828,751.26 833,338.76 826,776.26 829,045.01 2,565,810.64 6,716,823.19 (996,823.19) 5,720,000.00 3,042,800.02 3,037,290.02 2,500,211.27 2,491,415.02 2,495,603.77 8,969,536.94 6,044,746.90 1,218,000.00 29,799,603.94 (4,749,603.94) 25,050,000.00 200 CITY OF ANDOVER Computation of Legal Debt Margin December 31, 2015 (Unaudited) Estimated Taxable Market Value (Note A) Debt Limit: 3% of Market Value Total Bonded Debt Less: Non -Tax Levy Supported Debt: (Note B) 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 $ 2,435,770,612 73,073,118 $ 25,050,000 5,720,000 5,720,000 19,330,000 1,296,333 18,033,667 $ 55,039,451 Note B: The computation on legal debt margin only includes debt supported by a tax levy. 201 Table of Contents Table of Contents 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 2006 $ 8,550,919 $ 7,977,279 $ 1,700 * $ 7,978,979 93.31% $ 108,580 $ 8,087,559 94.58% 2007 9,316,427 8,738,606 410,519 9,149,125 98.20% 150,688 9,299,813 99.82% 2008 10,153,718 9,554,131 198,214 * 9,752,345 96.05% 182,017 9,934,362 97.84% 2009 10,593,520 9,992,240 54,629 * 10,046,869 94.84% 146,265 10,193,134 96.22% 2010 10,856,299 10,125,752 3,905 * 10,129,657 93.31% 164,307 10,293,964 94.82% 2011 10,856,299 10,119,681 853 * 10,120,534 93.22% 118,455 10,238,989 94.31% 2012 10,631,299 10,460,838 2,354 10,463,192 98.42% 98,259 10,561,451 99.34% 2013 10,631,299 10,535,521 1,246 10,536,767 99.11% 66,610 10,603,377 99.74% 2014 10,843,925 10,776,635 - 10,776,635 99.38% 25,087 Not Available 115.38% 237,175 68.13% 2013 * 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. 2014 326,597 387,651 CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Note: (1) Only includes assessments certified to Anoka County. 202 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 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% 2014 326,597 387,651 118.69% 3,788 391,439 119.85% 215,970 66.13% Note: (1) Only includes assessments certified to Anoka County. 202 CITY OF ANDOVER, MINNESOTA PRINCIPAL TAXPAYERS Current Year and Nine Years Ago (Unaudited) Taxpayers Minnegasco, Inc. Great River Energy Connexus Energy Target Corporation Presbyterian Homes of Andover Andover Limited Partnership Andover Station LLC DST Properties LLC Fairbanks Properties, LLC Columbia Park Properties 116 LLC United Power Association Individual - Commercial/Industrial Xcel Energy Health Partners Table of Contents Total $ 1,321,509 Net Tax Capacity $ 22,569,018 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) 5.86% $ 933,616 5.20% $ 17,951,904 2013 Estimated Market Values 2004 New Construction Net Percentage of Net Percentage of Tax Year Total City Tax Total Total City Capacity Rank Tax Capacity Capacity Rank Tax Capacity $ 211,244 1 0.94% $ 108,114 5 0.60% 194,038 2 0.86% 8 1,791,896 - 193,140 3 0.86% 187,734 1 1.05% 160,048 4 0.71% 2008 233,801,700 - 140,847 5 0.62% 150,544 2 0.84% 117,528 6 0.52% 145,276 3 0.81% 97,182 7 0.43% 2,526,288,900 2,756,266,700 - 81,678 8 0.36% 2011 199,728,200 2,305,897,900 65,926 9 0.29% 58 11,803,000 - 59,878 10 0.27% 52,064 7 0.29% 15,243,007 2013 - 114,304 4 0.64% 9,249,466 98 20,351,892 68,054 6 0.38% 2,270,068,100 14 4,285,281 49,584 8 0.28% agricultural, public utility, railroad operating property, and personal property 29,086 9 0.16% 28,856 10 0.16% Total $ 1,321,509 Net Tax Capacity $ 22,569,018 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) 5.86% $ 933,616 5.20% $ 17,951,904 203 Estimated Market Values New Construction Commercial / Commercial / Industrial Residential Year Industrial (1) Residential Total Permits Value Permits Value 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 2014 166,531,500 2,103,536,600 2,270,068,100 14 4,285,281 52 13,926,901 Note: (1) also includes agricultural, public utility, railroad operating property, and personal property 203 CITY OF ANDOVER, MINNESOTA DEMOGRAPHICS (Unaudited) U.S. Census 2000 2010 Population 26,588 30,598 Households 8,205 10,091 Household Size (Population/Household 3.24 3.03 POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) Percent of Change 2020 Est (1) 2000-2010 33,400 15.08% 11,000 22.99% 3.04 -6.43% Populaton by Age (20 10 U.S. Census): Persons Percent 4 and under 1,737 9.2% 5 - 9 2,620 10.6% 10-14 3,032 10.4% 15-19 2,807 7.6% 20-24 1,410 3.7% 25-34 2,887 14.5% 35-44 4,922 22.0% 45-54 5,932 13.1% 55-59 1,803 4.1% 60-64 1,393 2.0% 65-74 1,409 1.7% 75-84 454 0.8% 85 and over 192 0.3% Total population 30,598 100.0% Total female population 15,074 Total male population 15,524 2010 median age 31.9 yrs City of Anoka State of Andover County Minnesota Income Statistics: 2011 per capita income $ 32,615 $ 29,894 $ 30,656 2011 median household income 89,803 69,139 59,126 2011 median family income 94,159 79,587 74,032 2012 median gross rent 1,165 937 802 2012 median value owner occupied housing 242,300 203,700 194,300 (1) Source: Metropolitan Council 204 Table of Contents CITY OF ANDOVER, MINNESOTA MISCELLANEOUS STATISTICAL DATA (Unaudited) Date incorporated Form of government Miles of streets City County Storm sewer (miles) Water main (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 TVDe 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 205 1974 Plan A 200 43 76 116 96 68 595 37 9,572 12,924 Number of Employees 760 300 250 225 210 186 170 103 100 85 Table of Contents Table of Contents 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. 206 Table of Contents 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. 207 Table of Contents 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 208 Table of Contents 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. 209 Table of Contents 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. 210 Table of Contents 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. 211 Table of Contents 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. 212