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Home My WebLink AboutBudget - 20172017 Annual Operating Budget 2 LW 44 A 1685 Crosstown Blvd NW, Andover, MN 55304 Phone: (763) 755-5100 * Fax: (763) 755-8923 www.andovermn.gov CITY OF ANDOVER 2017 Annual Operating Budget (Click on description for direct link) Table of Contents Introduction 72 Public Official Listing.................................................................................... 1 OrganizationalChart ....................................................................................... 2 BudgetMessage.............................................................................................. 3 City Council Resolution Adopting Budget ..................................................... 29 Valuesand Goals............................................................................................ 32 Budget Development Process......................................................................... 33 2017 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 2017 Budget Summary by Fund Type............................................................ 47 2017 Budget Summary — Revenues and Expenditures Fund Summary.......... 48 2017 Budget Summary — Revenues and Expenditures All Funds .................. 49 2017 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 2017 FTE Summary........................................................................................ 54 2017 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 2017 Annual Operating Budget (Click on description for direct link) Table of Contents Special Revenue Funds (Continued) Capital Projects Funds (Continued) Right of Way Management / Utility Fund Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 104 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 132 FundOverview........................................................................................ 105 Fund Overview........................................................................................ 133 Charitable Gambling Fund Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 106 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 134 FundOverview........................................................................................ 107 Fund Overview........................................................................................ 135 Construction Seal Coating Fund Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 108 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 136 FundOverview........................................................................................ 109 Fund Overview........................................................................................ 137 Debt Service Funds Road and Bridge Fund Definition........................................................................................................ 111 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 138 Statement of Revenues, Expenditures and Changes in Fund Balance — All Fund Overview........................................................................................ 139 Debt Service Funds.................................................................................. 113 Park Dedication Projects Certificates / Capital Notes — 2012A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 140 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 114 Fund Overview........................................................................................ 141 Fund Overview........................................................................................ 115 Building Fund Certificates / Capital Notes — 2014A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 142 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 116 Fund Overview........................................................................................ 143 Fund Overview........................................................................................ 117 Trail & Transportation Certificates / Capital Notes — 2016A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 144 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 118 Fund Overview........................................................................................ 145 Fund Overview........................................................................................ 119 Capital Equipment Reserve General Obligation Bonds — 2012B G.O. Capital Improv Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 146 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 120 Fund Overview........................................................................................ 147 Fund Overview........................................................................................ 121 2014 G.O Equipment Certificates General Obligation Bonds — 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 148 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 122 Fund Overview........................................................................................ 149 Fund Overview........................................................................................ 123 2016 G.O Equipment Certificates State Aid Bonds — 2009A G.O. State Aid Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 150 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 124 Fund Overview........................................................................................ 151 Fund Overview........................................................................................ 125 Tax Increment Projects General Obligation Bonds — 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 152 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 126 Fund Overview........................................................................................ 153 Fund Overview........................................................................................ 127 Permanent Improvement Revolving Capital Projects Funds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 154 Definition........................................................................................................ 129 Fund Overview........................................................................................ 155 Statement of Revenues, Expenditures and Changes in Fund Balance — All Capital Projects Funds............................................................................. 131 CITY OF ANDOVER 2017 Annual Operating Budget (Click on description for direct link) Table of Contents Capital Projects Funds (Continued) Appendix (Continued) 2010A G.O. Open Space Referendum Bonds Miscellaneous Statistical Data Statement of Revenues, Expenditures and Changes in Fund Balance ..... 156 Glossary of Terms ................... FundOverview........................................................................................ 157 Enterprise Funds Definition........................................................................................................ 159 Statement of Revenues, Expenditures and Changes in Retained Earnings — All Enterprise Funds................................................................................ 161 Water Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 162 FundOverview........................................................................................ 163 Sanitary Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 164 FundOverview........................................................................................ 165 Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 166 FundOverview........................................................................................ 167 Internal Service Fund Definition........................................................................................................ 169 Statement of Revenues, Expenditures and Changes in Fund Balance — All Internal Service Funds............................................................................. 171 Central Equipment Maintenance Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 172 FundOverview........................................................................................ 173 Risk Management Statement of Revenues, Expenditures and Changes in Fund Balance ..... 174 FundOverview........................................................................................ 175 Appendix Budget Year 2017 — Operating Transfers....................................................... 177 2017 — 2021 Capital Improvement Plan Development Calendar .................... 178 Capital Improvements Plan 2017-2021.......................................................... 179 Summary of Outstanding Bond Issues............................................................ 191 Future Debt Service Requirements................................................................. 192 Computation of Legal Debt Margin................................................................ 193 Property Tax Levies and Collections.............................................................. 194 Special Assessment Levies and Collections................................................... 194 Principal Taxpayers........................................................................................ 195 Building Permits, Property Values and Households ....................................... 195 Demographics................................................................................................. 196 ...................................................................... 197 ...................................................................... 198 This page left blank intentionally. CITY OF ANDOVER Adopted 2017 City Budget Julie Trude Mayor Sheri Bukkila Councilmember Jim Goodrich Councilmember Valerie Holthus Councilmember Michael Knight Councilmember James Dickinson City Administrator / City Clerk Joe Janish Community Development Director David Berkowitz Director of Public Works / City Engineer Fred Patch Building Official Jerry Streich Fire Chief 0 Adm inistmtion I Bu ilding Inspections LCity Clerk Administrative Emergency Clerk's Office Services Management Human Resources Protectve I Elections Inspections Newsletter I I I Animal Control Economic Development Authority Community Center Charitable Gambling Recycling Information Systems CITY OF ANDOVER 2017 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 Administrator Advisory Boards 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 Capital Equipment 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 FA %nd 1161TA D1 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor, City Council Members and Residents of Andover FROM: Jim Dickinson, City Administrator / Finance Director SUBJECT: Adopted 2017 City Budget DATE: December 6, 2016 INTRODUCTION City Code 1-6-2 C. Major Areas of Accountability requires the City Administrator to submit an annual budget to Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 30, 2016. 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 22, April 26, May 24, June 27, July 26, and August 23 to discuss budget priorities and adopted the preliminary 2017 City Levy on September 6, 2016. Additional budget discussion was held with the Council on September 27, October 25, and November 29 before the public hearing that was held on December 6, 2016. The Council's final action on adopting the 2017 City Budget and 2017 Levy occurred on December 6, 2016. The official adoption of the 2017 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 28, 2016. 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 2017. 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 BUDGET GUIDELINES The following are City Council's 2017 Budget Development guidelines established by the City Council on April 19, 2016, 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 3.82% increase in total taxable market value. The 2017 Property Tax Levy that was approved estimates reducing the current City tax rate by 2.5%. 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2017 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management and information technology) through targeting revenue enhancements or expenditure limitations in the 2016 adopted General Fund budget. Note: With property tax revenues making up close to 80% of the total General Fund revenues, cash flow designations approaching 50% would be appropriate and are recommended by the City's auditor. The 2017 budget exceeds this guideline, also emergency fund balances (approximately 3% ofplanned General Fund expenditures) are in place to stabilize a situation and not be a complete solution. 3) A commitment to limit the 2017 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The adopted 2016 debt levy was 18.12% of the gross tax levy. The 25% guideline for 2017 was met easily as $500, 000 of existing debt levy was reallocated as a capital levy for 2017 to fund planned equipment purchases. This change decreased the 2017 debt levy to only 13.49% ofgross tax levy. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year -based replacement schedule. Note: The City Vehicle Purchasing Committee performed this analysis and has made recommendations to the City Council as part of the 2017 2021 Capital Improvement Plan (CIP) that was adopted at the October 18, 2016 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 a complex set of financial data including growth factors, tax capacity valuations, per capita spending and budgets. 6) Continued commitment to strategic planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and facility needs. Note: A strategic planning session was held with the City Council in 2015, with a final Council Community Vision and Organizational Goals and Values document approved by the City Council. Direction provided in that document is 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: Management did pay special attention to fiscal values, commercial & residential development/redevelopment, collaboration opportunities, service delivery and the livability/image of the community as part of the budget development process. 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 between 2000 through 2006. Since 2006, the pace of residential development has slowed and is attributable to regional and national economic factors. The City has taken a revised outlook on where growth is most likely to occur in contrast to previously determined urban services staging areas. This has required 6 the City to identify alternate locations for sewer supported growth. In 2016, the City issued 111 new single-family building permits with a total valuation of $28,893,036 compared to 74 new single-family building permits with a total valuation of $19,631,775 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 2016 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 280 single family rental licenses issued throughout the City in 2016. 2) In 2016, the City again saw new residential development including the development of 13 lots known as Preserve at Oak View, 19 lots known as Grey Oaks Fourth Addition, and a 66 unit senior living facility know as Estates of Arbor Oaks. 3) In 2015 and 2016, the City of Andover, in cooperation with the Anoka County Highway Department, worked through the planning of the Bunker Lake Boulevard expansion and reconstruction. Right of Way clearing took place in 2016 and construction is set to start in 2017 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 2016, 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 completes the Bunker Lake Boulevard frontage on the Andover Station North development. The restaurant opened in August 2016. 5) The City continues to work with Dynamic Sealing Technologies Inc. (DSTI), a global leader in the design and manufacturing of rotary unions and swivel joint products. In 2012, the City welcomed a 49,000 sq. ft. facility expansion expected to generate 50 new jobs for the community. DSTI also acquired an adjacent parcel that will allow for another facility expansion of 50,000 sq. ft. in the future, anticipated to start in 2017-2018. 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 and 2016, the employment has approached 300 employees. There are talks of a future expansion of the facility for TE Connectivity 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. In 2013, the City EDA sold a 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 started late 2016. The construction of this last structure completes the Parkside at Andover Station development. A final fragment of the original development was sold 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, which the residual parcel helped add four single-family residential lots to the B & D Estates development and homes were constructed on the lots in 2016. 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 completed in 2016 and the platting of an additional lot that Foundation Hill sold to the Andover Veterinarian Hospital, which completed the construction of an 8000 sq ft facility in 2016. 9) 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 8 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 Final Results of Andover 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. The office building was constructed in 2016, and will be the home of ReMax of Andover in early 2017. 10) 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 20,000 sq ft facility took place in throughout 2016, AT&T wireless has opened and Dunkin Donuts and Joy Kitchen are completing tenant finishes anticipating early 2017 openings. 11) In 2016, 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 bids were received in late 2016 with the first phase of construction to be completed the summer of 2017. Other restoration elements will continue through 2018. 12) The City completed the master planning concept layout of the City Campus site in 2016 to prepare for the facility needs for the ultimate build out of the City. The master planning concept layout provides for the Public Works, Public Safety, General Government and Recreational long term needs of the community. 13) 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. In 2016, the City hosted recycling events monthly (on weekends), generally with a specific focus, such as paper shredding and appliance or electronics collection. 0 14) 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. 15) 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 was 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, added to Northwoods Preserve) and a fourth purchase in November 2014 (Selmer/Blanchette/Kuikken, renamed Maple View). The last parcel was purchased in 2015; Dalske Woodlands is a 40 acre parcel of pristine woodland. Throughout 2016, the City Parks Department focused on creating nature trails, appropriate signage and accessibility to all of the open space parcels. In addition a timber -stand management project, in partnership with Great River Greening, was completed at Martins Meadows and an access point was created for the Maple View open space parcel. 16) The City's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2015 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 fourteenth consecutive year receiving the award and it is anticipated that the City's CAFR for the year ended December 31, 2016 will also achieve this award. 17) For the fifteenth year in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2016 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. 18) The City continues to make significant progress on the process of digitally imaging documents retained, this includes standard and legal documents and large construction plan documents. 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. 19) 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 2016, the City saw increased growth in the number of online and counter credit card payments for various City permits and services. Approximately 30% of the Building Department's permits were done online. IR OVERVIEW The Adopted 2017 Budget anticipates General Fund revenues in the amount of $10,825,139 to meet anticipated budgeted expenditures in the amount of $10,992,219, thus a decrease in (use of) fund balance is planned. As a result, total General Fund balance reserves are projected to decrease to 63.03% in 2017 as compared to 65.07% in 2016 in conjunction with corresponding expenditures for those years. The Adopted 2017 General Fund Budget represents an increase in expenditures of $294,431 over last year. Designated capital operating levies increased $528,170 in 2017 bringing the balance to $1,444,154. The 2017 Debt Service Levy includes two equipment notes, abatement bonds and the open space referendum bonds; and decreases the City debt ratio to gross City levy to 13.49% from 18.12% 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 addition of a new public works employee. 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 received $2,698; and as notified by the State, the City will be receiving zero in 2017. General Fund expenditure trends since 2011 are as follows: IF Expenditures Population Per Capita 3 0, 847 31,125 31,392 31,574 31,704 31,900 32,100 Note: The population figures were estimates by Met Council. $ 282.48 $ 284.58 $ 301.19 $ 312.96 $ 311.95 $ 333.64 $ 342.44 $350 Expenditures Per Capita $330 $310 $290 $270 $250 2011 2012 2013 2014 2015 2016 2017 The 2017 Adopted Budget provides for an adopted tax capacity rate of 37.328%, which compares to 38.314% for 2016 (this rate comparison excludes the open space and watershed levies). The 2017 decreasing tax capacity rate is reflective of the increase in the fiscal disparities distribution and the growth in the tax capacity values. Tax Capacity Values Expenditures Before Transfers % Change 2011 % Change 2011 Actual $ 8,713,796 n/a 2012 Actual $ 8,857,701 1.65% 2013 Actual $ 9,455,074 6.74% 2014 Actual $ 9,881,410 4.51% 2015 Actual $ 9,889,997 0.09% 2016 Estimate $ 10,643,062 7.61% 2017 Adopted $ 10,992,219 3.28% Expenditures Population Per Capita 3 0, 847 31,125 31,392 31,574 31,704 31,900 32,100 Note: The population figures were estimates by Met Council. $ 282.48 $ 284.58 $ 301.19 $ 312.96 $ 311.95 $ 333.64 $ 342.44 $350 Expenditures Per Capita $330 $310 $290 $270 $250 2011 2012 2013 2014 2015 2016 2017 The 2017 Adopted Budget provides for an adopted tax capacity rate of 37.328%, which compares to 38.314% for 2016 (this rate comparison excludes the open space and watershed levies). The 2017 decreasing tax capacity rate is reflective of the increase in the fiscal disparities distribution and the growth in the tax capacity values. 50.0% Tax Capacity Rates 45.0% 40.0% 35.0% 30.0% 2011 2012 2013 2014 2015 2016 2017 Note: The tax capacity rates do not include the open space and watershed levies. 12 Tax Capacity Values Tax Capacity Rates % Change % Change 2011 $26,174,350 n/a 38.407% n/a 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 $ 26,847,273 4.44% 38.314% 3.36% 2017 $ 27,952,797 4.12% 37.328% -2.57% 50.0% Tax Capacity Rates 45.0% 40.0% 35.0% 30.0% 2011 2012 2013 2014 2015 2016 2017 Note: The tax capacity rates do not include the open space and watershed levies. 12 Some highlights of the Adopted 2017 Budget are as follows: Capital Projects Levy — The 2016 Budget specifically designates $1,944,154 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($750,000), Road and Bridge ($1,118,079), Pedestrian Trail Maintenance ($63,075) 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 $1,179,154 is for transportation programming related to maintaining City streets, roadways and pedestrian trails. Approximately 5.35% ($63,075) of this levy is dedicated towards pedestrian trail maintenance. $344,552 is designated to the City's seal coating and crack sealing programs, with the remaining $759,362 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 9.88% of the Gross Tax Levy and increased $28,170 as compared to the 2016 levy. • Park Improvements — Under the Capital Projects Levy, $15,000 is designated for miscellaneous park related capital projects that come up throughout the year. The 2017 levy remains the same as the 2016 levy. • Capital Equipment/Projects — Under the Capital Projects Levy, $750,000 is designated to underwrite a wide range of capital improvement/equipment project expenditures. $500,000 is designated for specific capital purchases planned through the capital improvement plan. This levy was once used as debt levy but instead of issuing a capital note, the levy was reallocated for equipment purchases. Through the annual $250,000 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 2017 levy increased $500,000 as compared to the 2016 levy. 13 Sheriff's Police Contract Services — The Anoka County Sheriff's contract reflects a 0.89% general increase ($26,084). The 2017 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 budgeted a 1.98% increase ($3,720) over the 2016 budget. City Attorney criminal prosecutions have increased over 15% since 2005. Council Memberships and Contributions — The following are included as part of the 2017 General Fund budget: ■ North Metro Mayors Association ■ Metro Cities ■ Mediation Services ■ YMCA — Water Safety Program ■ Alexandra House ■ Youth First (Program Funding) ■ NW Anoka County Community Consortium - JPA ■ Teen Center Funding (YMCA) ■ Lee Carlson Central Center for Family Resources $15,010 - membership $ 9,512 - 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 2017 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 $ 900 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) ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost Reallocation — The 2017 Budget includes the addition of a Streets Maintenance employee due to the additional infrastructure that's been added over the last few years and the expanding of hours for the Fire Department Duty Crew. Cost -of -Living Adjustments — The total compensation package for 2017 includes step changes for eligible employees and a 2.0% cost of living adjustment. Administration and Human Resources continually review position -based salaries in detail to confirm competitiveness with other government entities. For a few positions to remain competitive with other governmental entities, budget has been included for salary adjustments. Health Insurance Costs — Premiums for health insurance will increase by 5.0% due to market conditions and group experience factors. Employer health care contributions are to be maintained at an employer ratio of 76% of the low-end family coverage and 100% of the single coverage. This will be the tenth 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 2016. Andover Animal Hospital constructed a new 5,815 square foot facility at 1730 — 139th Lane NW. Remax Results constructed a 13,600 square foot building at 2677 Bunker Lake Blvd. Shoppes at Andover was also constructed which is a 12,998 square foot multi -tenant building that has the following tenants: AT&T Wireless, Dunkin Donuts and Joy Kitchen. New residential development included the development of 13 lots known as Preserve at Oak View, 19 lots known as Grey Oaks Fourth Addition, 14 lots know as B and D Estates 2nd Addition and a 66 unit senior living facility know as Estates of Arbor Oaks. The City currently has a supply of 158 urban lots and 20 rural lots (includes the lots above). In 2016, the City issued 111 new single-family building permits with a total valuation of $28,893,036 compared to 74 new single-family building permits with a total valuation of $19,631,775 for the same point in time in the preceding year. The City has not issued any new multi- family dwelling permits in last six 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 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 2016 Estimate % Change Population 20,497 31,900 56 Housing Units 6,300 10,307 64 Streets (miles) 150 204 36 Cul-de-sacs 155 348 125 Storm Sewer (miles) 18 77 328 Water Main (miles) 35 117 234 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 625 972 56 Growth Factors 2000 2016 Estimate % Change Calls for Service — Police 9,588 14,736 54 Incident Reports 8,385 6,462 (23) Note: Reference Year is 2000 due to database reporting changes. 16 CAPITAL OUTLAY/IMPROVEMENTS Requests for capital outlay/improvements in the Adopted 2017 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 2017 Budget amounts to $6,794,800. Of that total amount, $95,000 will be funded by the General Fund levy, $885,000 will be funded by the capital equipment/project levy and reserves and the remaining through other funding sources. The City's 2017 - 2021 Capital Improvement Plan (CIP) process was instrumental in producing the outcomes outlined in the 2017 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 2017 — 2021 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 are 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. $200,000 is budgeted for the replacement of a one ton crew cab truck and the purchase of an additional trail machine. Funding for these items is through the new capital equipment purchases levy. Facility Management - $90,000 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. $50,000 is planned for a study to determine what type of space is needed, preliminary design and a high-level cost estimation for the Public Works relocation/expansion. $100,000 is budgeted for the 17 installation of a security management system at City Hall, Public Works and the Fire Stations. $60,000 is budgeted for HD upgrades in the council chambers and other audio changes. Funding for these projects is through the Capital Equipment Reserve Capital Projects Fund. Community Center - $75,000 is planned for a study to determine what type of space is needed, preliminary design and a high-level cost estimation for the Community Center expansion. Funding for this project is through the Capital Equipment Reserve Capital Projects Fund. Park Improvement Projects - $457,300 is budgeted for the Fox Meadows Park renovation. This project will include reconstructing the soccer field, adding a smaller field, adding a well and irrigation and expanding the existing parking lot. $20,000 is budgeted for irrigating a smaller park and $7,500 is budgeted for the construction of a basketball court at Nordeen's Park. Funding for these projects is through the Park Dedication Capital Projects Fund. Fire Services - $20,000 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. $80,000 is budgeted for the replacement of 3 sets of extrication equipment, one for each station. The Fire Department will be switching from hydraulic to battery powered equipment, thus reducing the initial cost and the amount of space needed for storage. This is funded by the Capital Equipment Reserve Capital Projects Fund. FUND BALANCE The City adopts fund balance goals to meet short and long-term needs. Fund balance goals are established to provide for cash flow needs, capital purchases, emergency contingencies and other specific needs. The General Fund projected to use $167,080 of fund balance to cover operations in 2017. The work done by staff relative to the 2016 revenue and expenditure estimates has achieved the Council 2017 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 45% of planned 2017 General Fund expenditures available from the 2016 budget (the targeted fund balance is approximately $4,946,499). 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 18 ■ Information Technology ($80K) - phone system and network server emergencies ■ Economic Development ($300K) — TIF Management Fee Migration In the Special Revenue Funds, the Economic Development Authority (EDA) Fund is projected to decrease $113,328 largely due to the decertification of the tax increment finance district in 2012, 2014 and 2016 which is charged an administrative fee by the EDA ($130,000). This also includes the construction of monument entrance signs located throughout the city, some include electronic reader boards. Staffing and expenditures will be migrated over to the General Fund over time. The Charitable Gambling Fund is projected to decrease ($10,900) due to the spend -down of monies collected in 2016 on qualifying public service expenditures. The Debt Service Funds are projected to decrease by $359,191 in 2017. The fund balance of the 2012 G.O. Equipment Certificate is projected to decrease ($589,669) due to the timing of when levies are collected and when debt service payments are made. The fund balance of the 2016 G.O. Equipment Certificate is projected to increase ($142,649) due to the timing of when levies are collected and when debt service payments are made. The fund balance of the 2012C G.O. Abatement Bonds Fund is projected to increase ($60,187) 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 ($28,243) since there are no scheduled improvements planned for 2017. The Sewer Trunk Fund continues to increase ($65,912) with the establishment of the replacement reserve monies. The Road and Bridge Fund is decreasing ($570,944) in 2017 due to the scope of the reconstruction project and the expansion of the seal coat project area. The Park Dedication Projects Fund is decreasing ($337,200) due to a major renovation of an existing park. The Building Fund is decreasing ($191,719) 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 ($522,800) due to the construction of trail segments. The Capital Equipment Reserve Fund is decreasing ($79,000) primarily due to the studies planned for the Public Works expansion/relocation and the Community Center expansion. Also included in this fund is an additional $500,000 levy for equipment purchases normally used for debt service payments. Instead of issuing an equipment certificate and continuing a debt levy, those funds were redirected to purchase the equipment. The Tax Increment Projects Fund is decreasing ($696,900) as new redevelopment/economic strategies take place. IE COMMUNITY VISION & GOALS While each budget year appears to only be dealing with the task at hand, the City of Andover, in addition to adopting each year's budget development guidelines, does keep in mind throughout the process the community's slogan, vision statement and short and long term organizational goals that are meant to say who and what the City of Andover is. The city's adopted slogan is "Welcome Home" and the vision statement is "Andover, a safe, growing community in which to live and work which enhances the quality of its citizens' lives through recreational opportunity, quiet neighborhoods, civic involvement, and fiscal and environmental stewardship." The long term organizational goals are: 1. EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES - the City of Andover 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. 20 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. 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. ON 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. 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. 22 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. 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. 23 LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible to ensure the stability of the City's basic services. In light of past state aid reductions and previous years levy limits imposed by the state legislature and the current sporadic onset of levy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing sufficient revenues to fund City services as follows: ♦ Employing a strategy aimed at reducing the City's reliance on the property tax levy to fund basic City services through "sustainable" revenue sources such as special revenues, user fees and fee-for-service transactions. ✓ The City tax rate will decrease in 2017 reflective of the increase in the fiscal disparities distribution and the increase in the 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. 24 ♦ The development of long-term financial models that identify anticipated trends in community growth and financial resources, designate appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. ✓ The City continually maintains various financial models to determine the long-term impacts of present day expenditure and financing decisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. ♦ The aggressive and appropriate investment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. ✓ Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates of deposit, municipal bonds, federal agencies and corporate paper and are designed to 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 25 selected capital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. The five year Capital Improvement planning process is critical in achieving these results. ♦ Involving all employees in the process of re-engineering the work environment by encouraging cross -training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. ✓ City staff is encouraged to idents work practice issues that are inefficient or overly bureaucratic. The management team is committed to involving their employees and fostering an environment that challenges the status quo of City operations. ♦ Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointly purchase equipment and develop strategies to deal with local issues using a regional approach. ✓ 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 2017 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. BudVetary 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 26 that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; and purchasing new equipment and introducing new technologies that allow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in City operations. The budget process included the opportunity for all department heads and supervisors to actively participate in a team process. Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the same framework in developing a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. 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 27 • a strong voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The 2017 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, r-' Jim Dickinson City Administrator / Finance Director 28 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. R110-16 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2017 BUDGET AND 2017 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, 2016; 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, 2016. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2017 City of Andover Budget and the 2017 property tax levy totaling $11,938,555 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2017 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 10,825,139 General Fund $ 10,992,219 Special Revenue Funds 1,567,000 Special Revenue Funds 1,686,420 Debt Service Funds 1,910,047 Debt Service Funds 2,269,238 Capital Projects Funds 5,053,538 Capital Projects Funds 7,353,217 Enterprise Funds 5,315,854 Enterprise Funds 5,292,421 Internal Service Funds 1,161,507 Internal Service Funds 1,207,471 Total $ 25,833,085 Total $ 28,800,986 Adopted by the City of Andover this 6th day of December 2016. CITY OF ANDOVER ATTEST: Julie Trude — Mayor tx RL Wim: Michelle Harmer — Deputy City Clerk CITY OF ANDOVER, MINNESOTA 2017 Property Tax Levy 2017 Levy General Fund Levy General Operations $ 8,254,354 Park Repair/Replacement Items 90,000 Total General Fund 8,344,354 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 187,840 2012C Taxable G.O. Abatement Bonds 974,418 2014A G.O. Equipment Certificate 295,260 2016A G.O. Equipment Certificate 152,529 Total Debt Service 1,610,047 Other Levies Capital Projects Levy Capital Equipment/Project 250,000 Capital Equipment Purchases 500,000 Parks Projects 15,000 Road & Bridge 1,116,079 Pedestrian Trail Maintenance 63,075 Lower Rum River Watershed 40,000 Total Other 1,984,154 Gross City Levy $ 11,938,555 30 Attachment A STATE OF MINNESOTA) COUNTY OF ANOKA ) CITY OF ANDOVER I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that I have carefully compared the attached Resolution No. R110-16 adopting the City of Andover 2017 Budget and 2017 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 6th day of December 2016. Michelle Harmer — Deputy City Clerk 31 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 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 2017 Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 6, 2016 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 6, 2016. The adopted 2017 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 28, 2016. 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 2017 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 33 Date February 23, 2016 March 1, 2016 March 22, 2016 April 4, 2016 April 4 — May 9, 2016 CITY OF ANDOVER 2017 Budget Development Calendar Activity Responsibility Council Workshop to discuss budget guidelines. City Council / Staff Council adopts 2017 Budget Development Guidelines. Council review of 2017 budget guidelines. 2017 Budget Calendar. Prepare base budgets and line item budget pages. April 19, 2016 Council budget progress report distributed. May 9, 2016 Distribution of base budgets, personnel services, capital budget forms and line item budget pages to all Department Heads. May 9, 2016 Begin preparation of performance measures. June 1, 2016* Department of Revenue notifies of required dates. June 2, 2016 Prepare preliminary 2017 revenue estimates. June 28, 2016 Council budget discussion. July 1, 2016** Requests for additional full-time staff to City Administrator. July 1, 2016** 2017 Budget forms and prioritization of adjustments to base, capital outlay requests due to Finance. July 1, 2016** Staff preparation of 2016 budget expenditure estimates. July 5 — 8, 2016 Compile and prepare documents for Management Team. July 8, 2016 General Fund levy calculations. July 11 — 15, 2016 2017 Budget Decision packages prioritized and finalized. July 15, 2016 Deadline for updated performance measures to City Administrator. July 18 — 22, 2016 Preparation of final draft of 2017 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 2017 Budget Development Calendar Date Activity Responsibility July 26, 2016 Council discussion of budget development progress. Receives 2017 Proposed Budget. City Council / Staff July 26, 2016 Council budget discussion. City Council / Staff August 5, 2016* County notifies City of school district & county public hearing dates. County August 23, 2016 City Council follow-up workshop for review of 2017 Proposed Budget. City Council / Staff August 23, 2016 City Council preview of Proposed 2017 Tax Levy Presentation. City Council / Staff September 1, 2016 State Department of Revenue (DOR) to certify levy limits for 2017. DOR September 6, 2016 (Req.) City to adopt proposed levy and select public hearing dates. City Council September 15, 2016 (Req.) Proposed tax levy must be certified to County. Finance September 27, 2016 City Council Budget discussion — focus on SRF, DSF, CPF, EF & ISE City Council / Staff September 30, 2016 (Req.) City to file proposed 2017 special levies with DOR Finance / DOR October 25, 2016 City Council Budget discussion — focus on DSF & CPF. City Council / Staff November 7 — 18, 2016* County Auditor to mail parcel specific notices. County November 22, 2016 City Council preview of Public Hearing. City Council / Staff December 1 - 14,2016* (Req.) City conducts public hearing during this time frame. City Council December 6, 2016 City of Andover Public hearing on 2017 Tax Levy and Budget. City Council December 6, 2016 City Council adopts 2017 Levy and Operating Budget. City Council December 28, 2016* (Req.) Deadline for staff to certify tax levy to State and County. Finance January 20, 2017* Finalize 2017 Actual Performance measures. Adopted budget printed and distributed. Finance January 20, 2017 Publication of adopted budget information in newspaper. Finance January 27, 2017 Department of Revenue budget form completed and submitted. Finance March 7, 2017 Submit budget award application to GFOA. (Due 90 days after budget adoption.) Finance *preliminary ** no exceptions 35 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 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 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 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 hnprovesnent Progran7 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 (2017) against those projects planned between 2018 and 2021. 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 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 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, 2016. This is the fifteenth 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 Revenue Projections As mentioned earlier, the Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. City of Andover Major Revenue Sources Comparison Misc Rev Spec Assess J Intergov'I Rev Invest. Income Tax Increments Charges for Svc Prop Taxes $0.00 $4.00 $8.00 $12.00 Millions ■2017 Budget 02016 Est 02015Actual 02014Actual City of Andover 2017 Revenue by Source Misc Rev Spec Assess 8% 3% Intergov'I Rev 9% Invest. Income 1% Tax Increments 0% Charges for 31% Prop Taxes 48% 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 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimate Property Tax Charges for Services 2017 Budget 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 2017 budget for property taxes was commitment to maintain the City Tax Rate Capacity in a manner consistent with the needs of the organization to ensure the long-term competitiveness, efficiency, staffing and capital requirements. The Council, by recognizing the impact of increasing market values and acknowledging community economic concerns, were able to establish an appropriate baseline of city services and a manageable debt service expense level. The general property tax revenue does increase 2.95% as compared to 2016. 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 2017 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 IM 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimate 2017 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). Two more districts were decertified in 2016. 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. Of the two remaining tax increment districts, one has a pay-as-you-go note associated with it and the other is reimbursing the district for expenditures already made. 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. In 2017, LGA was again eliminated for the City. 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 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimate 2017 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 2017 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 Revenue Projections — Miscellaneous Revenue $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimate 2017 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 2017 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 2017, 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 CITY OF ANDOVER 2017 Budget Summary By Fund Type City of Andover - Budgeted Funds Total Revenues: $25,833,085 Total Expenditures: $28,800,986 Governmental Funds General Fund Special Revenue Funds Debt Service Funds Revenues: $10,825,139 Revenues: $1,567,000 Revenues: $1,910,047 Expenditures: $10,992,219 Expenditures: $1,686,420 Expenditures: $2,269,238 neral Government -EDA -Drainage & Mapping blic Safety -LRRWMO -Forestry blic Works -ROW Mgmt / Utility -Construction Seal Coating ier -Community Center -CDBG -Charitable Gambling Fund Definitions Capital Projects Funds Revenues: $5,053,538 Expenditures: $7,353,217 Improvement Bonds Water Trunk State Aid Bonds Storm Sewer Equip Certificates Sewer Trunk Referendum Bonds Road & Bridge Abatement Bonds Trail & Transportation Cap Equip Reserve Tax Increment Park Dedication PIR Projects Building -Capital Notes / Bond Projects Proprietary Funds Enterprise Funds Revenues: $5,315,854 Expenditures: $5,292,421 Sewer Fund Water Fund Storm Sewer Fund Internal Service Funds Revenues: $1,161,507 Expenditures: $1,207,471 I Equipment / Maint. 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 Change in Fund Balance CITY OF ANDOVER 2017 Budget Summary Revenues and Expenditures Fund Summary Actual Adopted Estimate Budget 2015 2016 2016 2017 $ 35,638,453 10,155,767 1,597,537 2,433,363 5,004,773 5,282,379 1,217,927 25,691,746 61,330,199 10, 089, 997 1,535,499 2,289,598 2,754,927 4,598,039 1,086,807 22,354,867 $ 38,975,332 $ 3,336,879 9.36% 48 $ 38,975,332 10,390,411 1,562,200 2,479,273 4,896,471 5,153, 096 1,113, 344 25,594,795 64,570,127 10,697,788 1,740,686 2,316,271 6,935,077 4,912,499 1,167,967 27,770,288 $ 36,799,839 $ (2,175,493) -5.58% $ 38,975,332 10, 720, 236 1,509,700 2,403,830 5,979,313 5,277,465 1,123, 564 27,014,108 65,989,440 10, 893, 062 1,581,363 2,312,268 7,111,669 4,912,499 1,177,967 27,988,828 $ 38,000,612 $ (974,720) -2.50% $ 38,000,612 10, 825,139 1,567,000 1,910,047 5,053,538 5,315,854 1,161,507 25,833,085 63,833,697 10, 992, 219 1,686,420 2,269,238 7,353,217 5,292,421 1,207,471 28,800,986 $ 35,032,711 $ (2,967,901) -7.81% CITY OF ANDOVER 2017 Budget Summary Revenues and Expenditures -All Funds 49 Actual Budget Estimate Budget 2015 2016 2016 2017 Fund Balance/Net Assets, January 1 $ 35,638,453 $ 38,975,332 $ 38,975,332 $ 38,000,612 Revenues General Property Taxes 11,148,150 11,669,925 11,669, 925 12,014, 555 Tax Increments 213,020 - 118,480 118,480 Special Assessments 690,161 1,153,000 584,032 687,000 Licenses and Permits 452,616 346,205 533,660 367,705 Intergovernmental 959,790 1,524,491 1,537,412 2,118,552 Charges for Services 7,708,800 7,463,994 7,705,933 7,739,283 Fines 99,304 100,750 95,750 100,750 Investment l ncome 406,176 300,400 291,905 292,800 User Charges 615,544 262,421 844,682 270,183 Meters 16,055 13,000 13,000 13,000 Permit Fees 4,650 3,500 3,500 - Penalties - 16,000 16,000 16,000 Miscellaneous 1,319,342 991,300 1,381,355 1,089,800 Total Revenues: 23,633,608 23,844,986 24,795,634 24,828,108 Other Financing Sources Operating Transfers In 1,204,081 1,169,809 1,345,992 1,004,977 Bond Proceeds - 580,000 520,000 - Bond Premium - - - - Proceeds from Sale of Property 854,057 - 352,482 - Total Other Financing Sources: 2,058,138 1,749,809 2,218,474 1,004,977 Total Revenues and Other Sources: 25,691,746 25,594,795 27,014,108 25,833,085 Total Available: 61,330,199 64,570,127 65,989,440 63,833,697 Expenditures Personal Services 6,091,488 6,527,733 6,546,006 6,873,621 Supplies and Materials 1,171,223 1,454,812 1,425,487 1,486,797 Purchased Services 4,184,144 4,486,980 4,437,040 4,348,669 Other Services and Charges 5,283,993 8,657,986 9,397,894 8,300,233 Capital Outlay 1,160,545 2,231,000 1,590,070 3,540,800 Debt Service 3,259,393 3,241,968 3,246,339 3,245,889 Total Operating Expenditures: 21,150,786 26,600,479 26,642,836 27,796,009 Other Uses Operating Transfers Out 1,204,081 1,169,809 1,345,992 1,004,977 Bond Discount - - - - Redemption of Refunded Bonds Total Other Uses: 1,204,081 1,169,809 1,345,992 1,004,977 Total Expenditures and Other Uses: 22,354,867 27,770,288 27,988,828 28,800,986 Fund Balance/Net Assets, December 31 $ 38,975,332 $ 36,799,839 $ 38,000,612 $ 35,032,711 Change in Fund Balance $ 3,336,879 $ (2,175,493) $ (974,720) $ (2,967,901) 9.36% -5.58% -2.50% -7.81 49 CITY OF ANDOVER 2017 Budget Summary Revenues and Expenditures by Fund Type 50 Special Debt Capital Internal General Revenue Service Projects Enterprise Service Total Fund Balance/Net Assets, January 1 $ 7,095,078 $ 597,779 $ 1,308,862 $ 21,033,420 $ 7,275,072 $ 690,401 $ 38,000,612 Revenues General Property Taxes 8,420,354 40,000 1,610,047 1,944,154 - - 12,014,555 Tax Increments - - - 118,480 118,480 Special Assessments - 687,000 687,000 Licenses and Permits 367,705 - - 367,705 Intergovernmental 766,150 37,500 1,314,902 - - 2,118,552 Charges for Services 773,950 687,200 - 5,119,626 1,158,507 7,739,283 Fines 100,750 - - - - 100,750 Investment Income 75,000 5,800 163,000 46,000 3,000 292,800 User Charges - - 270,183 - - 270,183 Meters - 13,000 13,000 Permit Fees - - Penalties - - - 16,000 16,000 Miscellaneous 124,300 796,500 - 102,000 67,000 - 1,089,800 Total Revenues: 10,628,209 1,567,000 1,610,047 4,599,719 5,261,626 1,161,507 24,828,108 Other Financing Sources Operating Transfers In 196,930 - 300,000 453,819 54,228 - 1,004,977 Bond Proceeds - - - - - Proceeds from Sale of Property - - - - - Total Other Financing Sources: 196,930 300,000 453,819 54,228 - 1,004,977 Total Revenues and Other Sources: 10,825,139 1,567,000 1,910,047 5,053,538 5,315,854 1,161,507 25,833,085 Total Available: 17,920,217 2,164,779 3,218,909 26,086,958 12,590,926 1,851,908 63,833,697 Expenditures Personal Services 4,889,974 515,791 - - 1,025,217 442,639 6,873,621 Supplies and Materials 685,417 89,020 - 308,200 404,160 1,486,797 Purchased Services 3,902,989 240,680 205,000 - - 4,348,669 Other Services and Charges 1,423,839 469,929 3,772,470 2,273,323 360,672 8,300,233 Capital Outlay 90,000 66,000 - 3,124,800 260,000 - 3,540,800 Debt Service - - 2,220,419 196,719 828,751 - 3,245,889 Total Operating Expenditures: 10,992,219 1,381,420 2,220,419 7,298,989 4,695,491 1,207,471 27,796,009 Other Uses Operating Transfers Out 305,000 48,819 54,228 596,930 - 1,004,977 Bond Discount - - - - - Redemption of Refunded Bonds - - - - - Total Other Uses: - 305,000 48,819 54,228 596,930 - 1,004,977 Total Expenditures and Other Uses: 10,992,219 1,686,420 2,269,238 7,353,217 5,292,421 1,207,471 28,800,986 Fund Balance/Net Assets, December 31 $ 6,927,998 $ 478,359 $ 949,671 $ 18,733,741 $ 7,298,505 $ 644,437 $ 35,032,711 Change in Fund Balance $ (167,080) $ (119,420) $ (359,191) $ (2,299,679) $ 23,433 $ (45,964) $ (2,967,901) -2.35% -19.98% -27.44% -10.93% 0.32% -6.66% -7.81% 50 CITY OF ANDOVER Revenue Comparison - General Fund Actual Actual Actual Budget REVENUES Property Taxes $ 7,376,284 $ 7,476,295 $ 7,634,715 $ 8,113,528 License and Permits 536,707 364,430 452,616 346,205 Intergovernmental Revenues 710,071 697,491 749,570 673,248 Charges for Services 1,122,460 998,150 804,684 767,950 Fines and Forfeits 96,130 94,375 99,304 100,750 Interest Income (17,096) 144,876 63,709 75,000 Miscellaneous Revenue 140,983 150,759 154,239 116,800 Transfers 196,930 196,930_ 196,930 196,930 TOTAL REVENUES $ 10,162,469 $ 10,123,306 $ 10,155,767 $ 10,390,411 City of Andover 2017 Revenue Comparison - General Fund -$2.00 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 Millions DBudget 2017 ■Estimate 2016 ■Actual 2015 ■Actual 2014 ■Actual 2013 51 Estimate Budget $ 8,113,528 $ 8,420,354 533,660 367,705 707,868 766,150 869,900 773,950 95,750 100,750 65,000 75,000 137,600 124,300 196,930 196,930 $ 10,720,236 $ 10,825,139 City of Andover 2017 Revenue by Source - General Fund Misc. Rev Transfers 1% Interest Income 2% 1% Fines & Forfeits 1% Charges for Svcs 7% Intergov'I Rev 7% Licenses & Permits 3% Property Taxes 78% EXPENDITURES General Government Public Safety Public Works Other General Gov't Public Safety Public Works Other TOTAL EXPENDITURES CITY OF ANDOVER Expenditure Comparison - General Fund Actual Actual Actual Budget Estimate Budget 2013 2014 2015 2016 2016 2017 $ 2,308,882 24% $ 2,481,927 25% $ 2,511,970 25% $ 2,828,272 26% $ 2,792,859 26% $ 2,883,511 26% 4,311,340 45% 4,498,920 46% 4,503,332 45% 4,694,001 44% 4,691,451 43% 4,862,558 44 2,759,342 29% 2,819,372 29% 2,817,981 28% 3,105,187 29% 3,088,424 28% 3,175, 822 29 210,510 2% 81,185 1 % 256,720 3% 70,328 1 % 320,328 3% 70,328 1 $ 9,590,074 $ 9,881,404 $ 10, 090, 003 $ 10, 697, 788 $ 10, 893, 062 $ 10, 992, 219 City of Andover 2017 Expenditure Comparison - General Fund $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Millions OBudget 2017 ■Estimate 2016 ■Actual 2015 ■Actual 2014 ■Actual 2013 52 City of Andover 2017 Expenditures by Function -General Fund General Gc 26 Other 1% Public Safety 44 blic Works 29 CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2017 Actual Actual Actual Actual Actual Budget* Estimate Requested* Change (*) 2011 2012 2013 2014 2015 2016 2016 2017 $ % GENERAL GOVERNMENT Mayor and Council $ 101,373 $ 83,622 $ 83,595 $ 84,650 $ 85,060 $ 88,780 $ 87,030 $ 89,991 1,211 1.36% Administration 135,523 140,048 147,503 169,218 172,296 192,778 191,364 199,541 6,763 3.51% Newsletter 22,897 22,336 17,677 20,974 21,042 26,000 24,650 26,000 0 0.00% Human Resources 31,855 12,485 17,907 18,038 15,908 35,260 32,685 27,913 (7,347) -20.84% Attorney 171,062 170,930 173,244 177,427 180,313 187,640 179,000 191,360 3,720 1.98% City Clerk 100,697 101,377 108,312 128,861 134,775 157,075 155,875 148,599 (8,476) -5.40% Elections 6,399 39,614 11,352 41,508 14,497 57,919 83,019 63,881 5,962 10.29% Finance 207,032 207,337 215,215 230,639 240,319 261,016 260,516 268,129 7,113 2.73% Assessing 143,693 143,338 144,561 145,051 146,315 150,000 150,000 150,000 0 0.00% Information Services 142,964 136,025 135,982 146,984 131,744 173,483 169,233 175,722 2,239 1.29% Planning & Zoning 324,303 318,523 349,489 387,308 406,045 435,606 435,606 462,212 26,606 6.11% Engineering 413,818 427,339 452,788 460,872 464,843 509,514 509,514 535,715 26,201 5.14% Facility Management 469,478 420,799 451,257 470,397 498,813 553,201 514,367 544,448 8,753 -1.58% Total General Gov 2,271,094 2,223,773 2,308,882 2,481,927 2,511,970 2,828,272 2,792,859 2,883,511 55,239 1.95% PUBLIC SAFETY Police Protection 2,615,407 2,693,896 2,740,899 2,818,132 2,918,308 2,936,467 2,936,467 2,962,551 26,084 0.89% Fire Protection 974,988 1,015,825 1,126,979 1,264,018 1,165,223 1,284,795 1,284,795 1,422,522 137,727 10.72% Protective Inspection 342,437 354,753 423,495 390,908 391,951 441,807 441,807 446,688 4,881 1.10% Emergency Management 16,301 14,088 13,930 21,836 24,352 22,982 22,982 24,847 1,865 8.12% Animal Control 11,088 8,503 6,037 4,026 3,498 7,950 5,400 5,950 2,000 -25.16% Total Public Safety 3,960,221 4,087,065 4,311,340 4,498,920 4,503,332 4,694,001 4,691,451 4,862,558 168,557 3.59% PUBLIC WORKS Streets and Highways 594,294 570,630 572,753 600,313 629,724 650,237 650,237 691,473 41,236 6.34% Snow and Ice Removal 434,603 420,175 630,799 637,154 442,078 563,587 563,587 568,257 4,670 0.83% Street Signs 175,833 170,200 162,861 187,935 204,495 204,193 204,193 215,244 11,051 5.41% Traffic Signals 26,569 27,457 26,241 34,901 30,170 35,000 35,000 37,000 2,000 5.71% Street Lighting 32,317 33,439 31,702 32,646 30,664 36,400 36,400 38,400 2,000 5.49% StreetLights- Billed 189,144 195,197 210,331 203,148 201,500 217,500 217,500 217,500 0 0.00% Park & Recreation 889,180 912,750 946,545 1,009,373 1,151,314 1,257,247 1,257,247 1,275,530 18,283 1.45% Natural Resource Preservation - - - - - 10,096 10,096 10,197 101 1.00% Recycling 109,910 152,642 178,110 113,902 128,036 130,927 114,164 122,221 8,706 -6.65% Total Public Works 2,451,850 2,482,490 2,759,342 2,819,372 2,817,981 3,105,187 3,088,424 3,175,822 70,635 2.27% OTHER 30,631 663,372 210,510 81,185 256,720 70,328 320,328 70,328 0 0.00% Total Other 30,631 663,372 210,510 81,185 256,720 70,328 320,328 70,328 0 0.00% GRAND TOTAL S 8,713,796 S 9,456,700 S 9,590,074 S 9,881,404 S 10,090,003 S 10,697,788 S 10,893,062 S 10,992,219 294,431 2.75% 53 CITY OF ANDOVER 2017 FTE Summary 2014 2015 2016 2017 Actual Actual Current Budget Special Revenue Funds EDA General 2014 2015 2016 2017 Community Center Actual Actual Current Budget General Fund 0.15 0.15 0.07 0.07 General Government 0.20 0.20 0.08 0.08 Administration 1.05 1.05 1.18 1.13 Human Resources 0.03 0.03 0.03 0.03 City Clerk 1.84 1.84 1.89 1.89 Elections 0.10 0.10 0.10 0.15 Financial Adminstration 1.91 1.91 1.97 1.94 Information Systems 0.91 0.91 0.91 0.91 Planning & Zoning 3.90 3.90 4.00 4.03 Engineering 4.20 4.20 4.48 4.48 Facility Management 0.22 0.22 0.16 0.16 Total General Government 14.16 14.16 14.72 14.72 Public Safety Grand Total 56.00 57.00 57.50 Fire Protection 3.10 3.10 3.20 3.20 Protective Inspection 3.93 3.93 4.05 4.03 Emergency Management 0.05 0.05 0.05 0.05 Total Public Safety 7.08 7.08 7.30 7.28 Public Works Streets & Highways 4.88 5.34 5.05 5.90 Snow & Ice 3.95 1.98 2.65 2.75 Street Signs 1.30 1.70 1.41 1.51 Parks & Recreation 7.33 8.77 8.48 8.37 Natural Resource Preservation - - 0.03 0.03 Recycling 0.76 0.72 0.84 0.92 Total Public Works 18.22 18.51 18.46 19.48 Total General Fund 39.46 39.75 40.48 41.48 2014 2015 2016 2017 Actual Actual Current Budget Special Revenue Funds EDA General 0.35 0.35 0.10 0.05 Community Center 3.10 3.10 3.16 3.16 LRRWMO 0.15 0.15 0.07 0.07 ROW Mgmt / Utility 0.20 0.20 0.08 0.08 3.80 3.80 3.41 3.36 Enterprise Funds Water 4.52 4.39 4.63 4.58 Sewer 3.06 3.36 3.38 3.33 Storm Sewers 2.25 2.50 2.45 2.40 9.83 10.25 10.46 10.31 Internal Service Funds Central Equipment 2.81 3.10 3.05 3.25 Risk Mgmt 0.10 0.10 0.10 0.10 2.91 3.20 3.15 3.35 Grand Total 56.00 57.00 57.50 58.50 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2014 & 2015 are based on actual hours charged to various departments. 54 CITY OF ANDOVER 2017 Capital Improvement Plan Projects By Department - Use of Funds Community Center Park & Recreation - Projects Exterior Painting $ 6,000 Annual Miscellaneous Projects $ 15,000 ACC/YMCA Expansion 75,000 Fox Meadows Park- Renovation 457,300 81,000 Pine Hills North - Phase II 100,000 Irrigation Projects - Small Parks 20,000 Emergency Management Nordeen's Park Basketball Court 7,500 Emergency Operations Center Improvement 40,000 599,800 Replacement - Emergency Sirens 45,000 85,000 Planning & Zoning Replacement - Planning Vehicle #7 30,000 Engineering New Development Projects 160,000 Sanitary Sewer Pedestrian Trail Maintenance 50,000 Sanitary Sewer Extensions 105,000 New Pedestrian Trail and Sidewalk Segments 565,000 Replacement - Jet/Vac Truck #99 460,000 Pedestrian Trail Reconstruction 60,000 Lift Station #4 Upgrade 50,000 Pedestrian Curb Ramp Replacements 15,000 615,000 LED Crosswalk Warning System 21,000 871,000 Storm Sewer Storm Sewer Improvements 55,000 Facility Management Annual Parking Lot Maintenance 90,000 Street Signs Replacement - Carpet/Tile 10,000 Sign Design Software and Plotter 10,000 Replacement - Security Management System 100,000 Public Works Relocation / Expansion 50,000 Streets / Highways HD Upgrade - City Hall Council Chambers 60,000 Annual Street Seal Coat Project 725,000 310,000 Annual Street Crack Seal Project 160,000 Annual Pavement Markings 42,000 Fire Annual Curb Replacement 50,000 Replacement - Turnout Gear 20,000 Municipal State Aid Routes / New & Reconstruct 1,300,000 Replacement- Extrication (Rescue) Equipment 80,000 Annual Street Reconstruction 1,236,000 100,000 Gravel Road Improvement 15,000 Replacement - One Ton Truck w/ Plow #134 80,000 Park & Recreation - Operations New One Ton Truck w/ Regular box, lift 55,000 Replace/Repair Play Structures - Various Parks 50,000 New - Bobcat Paver 20,000 Replace/Repair Major Park Projects - Various Parks 25,000 3,683,000 Replacement - One Ton Crew Cab Truck 50,000 New - Trail Machine 150,000 Water $ 275,000 Rehabilitation of Wells 50,000 Replacement - Dodge Dakota #95 30,000 80,000 Grand Total $ 6,794,800 55 Assessments Capital Equipment Reserve Community Center Operations Construction Seal Coating Fund Donations General Fund Municipal State Aid Fund Park Improvement Fund Road & Bridge Fund Sanitary Sewer Fund Sewer Trunk Fund Storm Sewer Fund Trail Fund Water Fund Water Trunk Fund CITY OF ANDOVER 2017 Capital Improvement Plan Sources of Funds 56 $ 657,000 885,000 66,000 17,000 100,000 95,000 1,057,000 499,800 2,048,000 245,000 397,000 55,000 565,000 65,000 43,000 Total $ 6,794,800 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET GENERAL FUND DEFINITION: The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and park and recreation. Revenue is recorded by source: i.e., general property taxes, licenses and permits, fines, charges for services, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. 57 This page left blank intentionally. 58 City of Andover 2017 Budget - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 7,202,134 $ 7,267,904 $ 7,267,904 $ 7,095,078 7,634,715 452,616 749,570 804,684 99,304 63,709 154,239 9,958,837 196,930 10,155,767 17,357,901 4,191,455 575,178 3,824,655 1,298,709 9,889,997 200,000 10,089,997 $ 7,267,904 Change in Fund Balance $ 65,770 1% 8,113,528 346,205 673,248 767,950 100,750 75,000 116,800 10,193,481 196,930 10,390,411 17,658,315 4,623,992 692,032 3,860,945 1,430,819 90,000 10,697,788 10,697,788 $ 6,960,527 $ (307,377) -4% 59 8,113,528 533,660 707,868 869,900 95,750 65,000 137,600 10,523,306 196,930 10,720,236 17, 988,140 4,628,265 668,357 3,854,505 1,401,935 90,000 10,643,062 250,000 10,893,062 $ 7,095,078 $ (172,826) -2% 8,420,354 367,705 766,150 773,950 100,750 75,000 124,300 10,628,209 196,930 10,825,139 17,920,217 4,889,974 685,417 3,902,989 1,423,839 90,000 10,992,219 10,992,219 $ 6,927,998 $ (167,080) -2% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 7,202,134 $ 7,267,904 $ 7,267,904 $ 7,095,078 7,634,715 452,616 749,570 804,684 99,304 63,709 154,239 9,958,837 196,930 10,155,767 17,357,901 4,191,455 575,178 3,824,655 1,298,709 9,889,997 200,000 10,089,997 $ 7,267,904 Change in Fund Balance $ 65,770 1% 8,113,528 346,205 673,248 767,950 100,750 75,000 116,800 10,193,481 196,930 10,390,411 17,658,315 4,623,992 692,032 3,860,945 1,430,819 90,000 10,697,788 10,697,788 $ 6,960,527 $ (307,377) -4% 59 8,113,528 533,660 707,868 869,900 95,750 65,000 137,600 10,523,306 196,930 10,720,236 17, 988,140 4,628,265 668,357 3,854,505 1,401,935 90,000 10,643,062 250,000 10,893,062 $ 7,095,078 $ (172,826) -2% 8,420,354 367,705 766,150 773,950 100,750 75,000 124,300 10,628,209 196,930 10,825,139 17,920,217 4,889,974 685,417 3,902,989 1,423,839 90,000 10,992,219 10,992,219 $ 6,927,998 $ (167,080) -2% 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 2016 and Budget 2017. Department: Mayor&Council Director/Manager: City Council Actual Current Budgeted Performance Measures 2015 2016 2017 Council Meetings 24 25 24 Special Workshops 19 17 15 Aqenda Items 479 459 480 Department: Mayor&Council Director/Manager: City Council Service Expenditures By Category d* Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 60 Current 2016 Current 2016 $ 43,799 31,802 2,679 8,750 87,030 Budgeted 2017 Budgeted 2017 $ 44,925 32,287 2,779 10,000 89,991 ®Personal Services ■Supplies & Materials 130ther Services / Charges OPurchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.22 $ 0.23 $ 0.23 $ 2.68 $ 2.73 $ 2.80 Actual Staffing Levels 2015 One Mayor and Four Council Members Actual Service Expenditures 2015 Personal Services $ 43,523 Supplies & Materials 30,659 Other Services / Charges 2,472 Purchased Services 8,406 TOTAL 85,060 Service Expenditures By Category d* Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 60 Current 2016 Current 2016 $ 43,799 31,802 2,679 8,750 87,030 Budgeted 2017 Budgeted 2017 $ 44,925 32,287 2,779 10,000 89,991 ®Personal Services ■Supplies & Materials 130ther Services / Charges OPurchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.22 $ 0.23 $ 0.23 $ 2.68 $ 2.73 $ 2.80 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 2017 reflects changes to salary and benefits and fte allocations. Department: Administration Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 1.05 1.05 1.13 Actual Current Budgeted Performance Measures 2015 2016 2017 Regular Council Agenda Items 479 459 480 Council Workshops Attended 19 17 16 Council Meetings Attended 23 25 24 Staff Meetinqs Held 52 52 52 Department: Administration Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 1.05 1.05 1.13 ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 149,116 $ 166,110 $ 172,373 Supplies & Materials 6,581 8,200 9,950 Other Services / Charges 16,599 17,054 17,218 Purchased Services TOTAL $ 172,296 191,364 199,541 Service Expenditures By Category ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 61 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 0.45 $ 0.50 $ 0.52 Annual $ 5.43 $ 6.00 $ 6.22 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 61 Fund: 0101 -General Cost Center: 41210 Activity 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. Actual Current Budgeted Performance Measures 2015 2016 2017 Number of Meetings Held 6 6 6 Newsletters Published 6 6 6 Public Circulation 12,750 12,820 12,931 Staff Preoaration Hours 90 100 100 Department: Newsletter Director/Manager: Newsletter Coordinator Actual Staffing Levels 2015 FTE Equivalents N/A Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 62 Actual Current 2016 N/A Current 2016 13,650 11,000 24,650 Budgeted 2017 N/A Budgeted 2017 14,000 12,000 26,000 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current Budgeted J I,1 V`T JI,JVV JG, IVV $ 0.06 $ 0.06 $ 0.07 $ 0.66 $ 0.77 $ 0.81 Actual Service Expenditures 2015 Personal Services $ - Supplies & Materials 10,120 Other Services / Charges - Purchased Services 10,922 TOTAL $ 21,042 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 62 Actual Current 2016 N/A Current 2016 13,650 11,000 24,650 Budgeted 2017 N/A Budgeted 2017 14,000 12,000 26,000 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current Budgeted J I,1 V`T JI,JVV JG, IVV $ 0.06 $ 0.06 $ 0.07 $ 0.66 $ 0.77 $ 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 2017 includes funding for any market rate adjustments that are approved by Personal Services the City Council. As more employees become eligible for retirement, an increase in Supplies & Materials recruitment is expected. Other Services / Charges Actual Current Budgeted Performance Measures 2015 2016 2017 Number of applications reviewed 216 191 200 Number of training hours 50 24 50 Hours spent on labor relations 100 0 100 Hours spent on benefit administration 50 50 50 Emolovees hired (Seasonal/FT/PT) 50 42 60 Department: Human Resources Director/Manager: Human Resources Manager Actual Staffing Levels 2015 FTE Equivalents 0.03 Service Expenditures By Category l Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 63 Current Actual Service Expenditures 2015 Personal Services $ 5,526 Supplies & Materials 3,299 Other Services / Charges 3,645 Purchased Services 3,438 TOTAL 15,908 Service Expenditures By Category l Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 63 Current Budgeted 2016 2017 0.03 0.03 Current Budgeted 2016 2017 $ 4,510 $ 4,663 3,575 3,900 4,100 4,100 20,500 15,250 32,685 27,913 ®Personal Services ■Supplies & Materials 130ther Services / Charges 13Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.04 $ 0.09 $ 0.07 $ 0.50 $ 1.02 $ 0.87 Fund: 0101 -General Cost Center: 41240 Activitv 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 Hi2hli2hts Slight increase (2%) planned for Budget 2017. Staffing Levels FTE Equivalents Department: Attorney Director/Manager: City Administrator Actual Current 2015 2016 N/A N/A Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 64 Actual 2015 31,704 $ 0.47 $ 5.69 Current Mir Budgeted 2017 N/A Budgeted 2017 179,000 191,360 179,000 191,360 o Personal Services oSupplies & Materials 0Other Services / Charges o Purchased Services Current 2016 31,900 $ 0.47 $ 5.61 Budgeted 2017 32,100 $ 0.50 $ 5.96 Actual Service Expenditures 2015 Personal Services $ - Supplies & Materials - Other Services / Charges - Purchased Services 180,313 TOTAL 180,313 Service Expenditures By Catc2ory Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 64 Actual 2015 31,704 $ 0.47 $ 5.69 Current Mir Budgeted 2017 N/A Budgeted 2017 179,000 191,360 179,000 191,360 o Personal Services oSupplies & Materials 0Other Services / Charges o Purchased Services Current 2016 31,900 $ 0.47 $ 5.61 Budgeted 2017 32,100 $ 0.50 $ 5.96 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 2017, the increase is due to a COLA and an increase in the cost of health benefits. Actual Current Budgeted Performance Measures 2015 2016 2017 Council packets assembled & distributed 384 402 400 Licenses Issued 71 155 150 Service Expenditures By Categor Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------------------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 65 ®Personal Services ■Supplies & Materials 130ther Services / Charges 13Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31, 900 32,100 $ 0.35 $ 0.41 $ 0.39 $ 4.25 $ 4.89 $ 4.63 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 1.84 1.84 1.89 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 107,427 $ 127,688 $ 120,412 Supplies & Materials 1,458 2,110 2,110 Other Services / Charges 25,822 25,877 25,877 Purchased Services 68 200 200 TOTAL 134,775 155,875 148,599 Service Expenditures By Categor Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------------------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 65 ®Personal Services ■Supplies & Materials 130ther Services / Charges 13Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31, 900 32,100 $ 0.35 $ 0.41 $ 0.39 $ 4.25 $ 4.89 $ 4.63 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 Highlights Actual Current Budgeted Current 2016 included a special election done early in the year in addition to the fall election. 2016 Actual Current Budgeted Performance Measures 2015 2016 2017 Total number of voters Non election 18,527 Non election Number of Precincts year 10 year Registered voters $ 54,031 22,051 96 Department: Elections Director/Manager: City Clerk Service Expenditures By Catew Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 66 ®Personal Services ■Supplies & Materials 13 Other Services / Charges 13 Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.04 $ 0.22 $ 0.17 $ 0.46 $ 2.60 $ 1.99 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 0.10 0.10 0.15 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 7,651 $ 73,319 $ 54,031 Supplies & Materials 96 2,000 2,000 Other Services / Charges - - - Purchased Services 6,750 7,700 7,850 TOTAL 14,497 83,019 63,881 Service Expenditures By Catew Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 66 ®Personal Services ■Supplies & Materials 13 Other Services / Charges 13 Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.04 $ 0.22 $ 0.17 $ 0.46 $ 2.60 $ 1.99 Fund: 0101 -General Department: Financial Administration Cost Center: 41400 Director/Manager: Finance Director Activity 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 2017 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 2015 2,933 Current 2016 3,266 Budgeted 2017 3,250 Payroll checks issued 147 264 250 Payroll checks - direct deposit 2,125 2,099 2,100 Number of delinquent accounts 630 608 600 Utility accounts - Storm Water 10,418 10,527 11,712 Utility accounts - Water 6,481 6,580 6,676 Utility accounts - Sewer 7,353 7,448 7,582 Utilitv accounts - Street Liahts 7.157 7.242 7.300 Staffing Levels FTE Equivalents Service Expenditures Personal Services Supplies & Materials Other Services / Charges Purchased Services TOTAL Actual 2015 1.91 Actual 2015 $ 192,298 5,939 19,496 22,586 $ 240,319 Service Expenditures By Category Current 2016 1.91 Current 2016 $ 206,970 7,700 20,246 25,600 260,516 Budgeted 2017 1.94 Budgeted 2017 $ 212,833 7,850 20,696 26,750 268,129 ®Personal Services -~--__ ■Supplies & Materials oOther Services / Charges oPurchased Services ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 67 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 0.63 $ 0.68 $ 0.70 Annual $ 7.58 $ 8.17 $ 8.35 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 67 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 2015 2016 2017 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 2017 is sufficient for a slight increase in the contract with Anoka County for assessing services. ®Personal Services ■Supplies & Materials i 130ther Services / Charges oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ------------------------------------------------------------ ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 68 Actual Actual Current Budgeted Performance Measures 2015 2016 2017 Residential Parcels Assessed 10,241 10,308 10,350 Commercial Parcels Assessed 132 129 130 Apartments Assessed 21 21 21 Unimproved Parcels Assessed 694 674 650 ®Personal Services ■Supplies & Materials i 130ther Services / Charges oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ------------------------------------------------------------ ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 68 Actual Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 146,315 150,000 150,000 TOTAL 146,315 150,000 150,000 Service Expenditures By Category ®Personal Services ■Supplies & Materials i 130ther Services / Charges oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual ------------------------------------------------------------ ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 68 Actual Current 2015 2016 31,704 31,900 $ 0.38 $ 0.39 $ 4.62 $ 4.70 Budgeted $ 0.39 $ 4.67 Fund: 0101 -General Cost Center: 41420 Activity 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 2017. Actual Current Budgeted Performance Measures 2015 2016 2017 Number of PC's / Servers 74 78 80 Number of Printers 28 28 28 Number of Phones Maintained 75 89 90 Department: Information Systems Director/Manager: City Administrator Service Expenditures By Category r ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Actual Expenditures Per Capita 2015 Population - Estimates 31,704 Monthly $ 0.35 Annual $ 4.16 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 69 Current 2016 31,900 $ 0.44 $ 5.31 Budgeted $ 0.46 $ 5.47 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 0.91 0.91 0.91 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 98,913 $ 104,798 $ 107,987 Supplies & Materials 14,900 33,685 36,335 Other Services / Charges 16,806 27,750 29,400 Purchased Services 1,125 3,000 2,000 TOTAL $ 131,744 169,233 175,722 Service Expenditures By Category r ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Actual Expenditures Per Capita 2015 Population - Estimates 31,704 Monthly $ 0.35 Annual $ 4.16 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 69 Current 2016 31,900 $ 0.44 $ 5.31 Budgeted $ 0.46 $ 5.47 Fund: 0101 -General Department: Planning and Zoning Cost Center: 41500 Director/Manager: Community Development Director Personal Services accordance with adopted regulations $ 415,095 Process Used Activitv Description Actual Review residential and commercial developments for conformance with City's Budgeted Comprehensive Plan, Ordinances, and Development Policies. Prepare ordinances for Council adoption with the implementation and enforcement of ordinances as 2016 directed. Review planning and zoning requests and make recommendations in Personal Services accordance with adopted regulations $ 415,095 Process Used Supplies & Materials The Planning Department processes development proposals, reviews plats, 5,900 reviews commercial site plans and responds to citizens' requests for rezonings, Other Services / Charges special use permits, comprehensive plan amendments and variances. The 7,711 Zoning Ordinance is the primary source of information. However, the Andover Purchased Services Review Committee and the City Attorney are also utilized before applications 6,900 are processed before the Planning and Zoning Commission and City Council. TOTAL Service Expenditure Highlights 435,606 Budget 2017 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. Service Expenditures By Actual Current Budgeted Performance Measures 2015 2016 2017 Subdivisions Processed 6 4 4 Commercial Site Plans Processed 4 3 2 Conditional Use Permits 6 1 2 Code Amendments 2 1 2 Comp Plan Amendments 3 0 2 Rezonings 3 0 2 Variances 1 0 1 Lot Splits 1 0 2 P&Z Agendas 13 8 12 Vac of Easements 8 8 8 IUP - Interim Use Permit 5 5 5 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 3.90 3.90 4.03 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 70 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Current $ 1.14 $ 13.66 Budgeted $ 1.20 $ 14.40 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 386,843 $ 415,095 $ 440,224 Supplies & Materials 4,714 5,900 6,700 Other Services / Charges 7,043 7,711 7,588 Purchased Services 7,445 6,900 7,700 TOTAL 406,045 435,606 462,212 Service Expenditures By Category ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 70 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Current $ 1.14 $ 13.66 Budgeted $ 1.20 $ 14.40 Actual Expenditures Per Capita 2015 Population - Estimates 31,704 Monthly $ 1.07 Annual $ 12.81 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 70 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Current $ 1.14 $ 13.66 Budgeted $ 1.20 $ 14.40 Fund: 0101 -General Department: Engineering Cost Center: 41600 Director/Manager: City Engineer 1. Number of Projects Constructed 11 11 14 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 2017 Personal Services change is largely due to a COLA, a cost increase in health benefits and reallocation of staffing. Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 4.20 4.20 4.48 Actual Current Budgeted Performance Measures 2015 2016 2017 1. Number of Projects Constructed 11 11 14 2. Number of Projects Reviewed: 14,624 18,500 19,200 Prelimary Plats 5 5 3 Commercial Site Plans 3 3 2 3. Number of Utilitv permits issued 67 67 67 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 4.20 4.20 4.48 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 71 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 1.22 $ 1.33 $ 1.39 $ 14.66 $ 15.97 $ 16.69 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 428,843 $ 464,556 $ 489,942 Supplies & Materials 14,624 18,500 19,200 Other Services / Charges 21,330 24,158 24,273 Purchased Services 46 2,300 2,300 TOTAL $ 464,843 509,514 535,715 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 71 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 1.22 $ 1.33 $ 1.39 $ 14.66 $ 15.97 $ 16.69 Fund: 0101 -General Cost Center: 41900 Activitv Description Responsible for the custodial, mechanical, structural and ground maintenance of the City Hall and Public Works campus, park buildings and fire stations. Process Used The facilities are to be maintained in a healthy, safe and sanitary condition and to work toward facility designs that will maximize operational efficiency while projecting a positive public image and work environment. Service Expenditure Highlights Utility rates are expected to rise and as buildings continue to age, maintenance costs increase as well. Performance Measures Buildings Parking Lots Actual 14 Current 2016 18 14 Budgeted 14 Staffing Levels FTE Equivalents Service Expenditures Personal Services Supplies & Materials Other Services / Charges Purchased Services TOTAL Department: Facilities Management Director/Manager: Finance Director Actual Current Budgeted Actual Current Budgeted 2015 2016 2017 $ 16,460 $ 20,000 $ 19,957 49,727 51,200 56,250 239,824 278,157 301,141 192,802 165,010 167,100 $ 498,813 514,367 544,448 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 72 Actual $ 1.31 $ 15.73 ® Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current 2016 31,900 $ 1.34 $ 16.12 Budgeted $ 1.41 $ 16.96 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 2017 includes minimal contract increase with no change in service. Performance Measures Actual 2015 Current 2016 Budgeted 2017 Number of Part I & II Offenses 1,417 1,235 1,300 Number of Calls for Services 10,319 14,736 12,500 Number of Traffic Citations 2,066 1,614 1,800 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 Department: Police Protection Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents N/A N/A N/A ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 2,918,308 2,936,467 2,962,551 TOTAL $ 2,918,308 2,936,467 2,962,551 Service Expenditures By Category ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 73 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 7.67 $ 7.67 $ 7.69 Annual $ 92.05 $ 92.05 $ 92.29 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 73 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 Budget 2017 includes the purchase of turnout gear ($19k) and an increase in State Fire Aid that is passed thru to the Relief Association ($71 k). It also includes expanding the Duty Crew hours to cover the morning and afternoon commute times. Customer Contacts 3.000 3.400 5.000 Total Firefighter Training Hours 4,283 3,264 3,400 Staffing Levels FTE Equivalents Department: Fire Protection Director/Manager: Fire Chief Actual Current 2015 2016 3.10 3.10 Actual Current Budgeted Performance Measures 2015 2016 2017 Fire Responses 262 378 350 Emergency Medical Responses 336 594 500 Fire Inspections 34 71 65 Fire Investigations 14 14 10 Public Fire Education (hours) 369 233 400 Customer Contacts 3.000 3.400 5.000 Total Firefighter Training Hours 4,283 3,264 3,400 Staffing Levels FTE Equivalents Department: Fire Protection Director/Manager: Fire Chief Actual Current 2015 2016 3.10 3.10 Current 2016 $ 913,555 114,850 224,140 32,250 1,284,795 Budgeted 2017 3.21 Budgeted 2017 $ 1,046,078 119,850 223,594 33,000 1,422,522 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Actual Service Expenditures 2015 Personal Services $ 819,339 Supplies & Materials 118,761 Other Services / Charges 215,078 Purchased Services 12,045 TOTAL $ 1,165,223 Service Expenditures By Category Current 2016 $ 913,555 114,850 224,140 32,250 1,284,795 Budgeted 2017 3.21 Budgeted 2017 $ 1,046,078 119,850 223,594 33,000 1,422,522 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 74 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 3.06 $ 3.36 $ 3.69 Annual $ 36.75 $ 40.28 $ 44.32 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 74 Fund: 0101 -General Cost Center: 42300 Activity 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 Highlights Online permits have been a notable success in 2015 and 2016 with more than 30% of all permits being process online and saving both the City and permit applicants time and money. Actual Current Budgeted Performance Measures 2015 2016 2017 Townhomes 0 8 0 Department: Protective Inspection Director/Manager: Building Official Service Expenditures By Category f ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Single Family Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 3.93 3.93 4.03 Other Permits Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 324,097 $ 361,434 $ 367,219 Supplies & Materials 10,648 18,250 17,550 Other Services / Charges 23,404 25,323 24,919 Purchased Services 33,802 36,800 37,000 TOTAL $ 391,951 441,807 446,688 Service Expenditures By Category f ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Single Family 74 103 77 Miscellaneous Building Permits 498 527 375 Actual Other Permits 2,744 2,536 2,060 Expenditures Per Capita 2015 Inspections 3,100 3,562 2,750 Population - Estimates 31,704 Contractor Licenses 112 82 80 Monthly $ 1.03 Online Permits 391 963 850 Annual $ 12.36 ------------------------------------------------------------------------------ ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 75 Current $ 1.15 $ 13.85 Budgeted $ 1.16 $ 13.92 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 Actual 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 2015 2016 2017 Siren tests throughout the severe weather season 4 4 4 State-wide siren tests 14 14 14 Number of sirens 12 12 12 Department: Emergency Management Director/Manager: Building Official Service Expenditures By Categor ®Personal Services ■Supplies & Materials []Other Services / Charges 13Purchased Services Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 0.05 0.05 0.05 Monthly Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 5,861 $ 6,298 $ 6,663 Supplies & Materials - 2,500 2,500 Other Services / Charges 7,930 8,184 8,684 Purchased Services 10,561 6,000 7,000 TOTAL 24,352 22,982 24,847 Service Expenditures By Categor ®Personal Services ■Supplies & Materials []Other Services / Charges 13Purchased Services ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 76 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 0.06 $ 0.06 $ 0.06 Annual ---------------------- $ 0.77 $ 0.72 $ 0.77 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 76 Fund: 0101 -General Department: Animal Control Cost Center: 42500 Director/Manager: City Clerk Budgeted Performance Measures 2015 2016 2017 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 Actual Current Minimal increase is planned for Budget 2017. Service Expenditures 2015 Actual Current Budgeted Performance Measures 2015 2016 2017 Number of dogs licensed 271 256 260 Number of animals confined 55 67 60 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents N/A N/A N/A Expenditures Per Capita Population - Estimate Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 77 Actual 2015 31,704 $ 0.01 $ 0.11 ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services Current 2016 31,900 $ 0.01 $ 0.17 Budgeted $ 0.02 $ 0.19 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ - $ - $ - Supplies & Materials 318 150 150 Other Services / Charges 150 150 200 Purchased Services 3,030 5,100 5,600 TOTAL 3,498 5,400 5,950 Service Expenditures By Category Expenditures Per Capita Population - Estimate Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 77 Actual 2015 31,704 $ 0.01 $ 0.11 ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services Current 2016 31,900 $ 0.01 $ 0.17 Budgeted $ 0.02 $ 0.19 Fund: 0101 -General Cost Center: 43100 Activity 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 Highlights Minimal changes to Budget 2017 as compared to Current 2015. The increase is largely due to an additional public works employee being added in Budget 2017. Road Markings/Striping (intersections) Actual Current Budgeted Performance Measures 2015 2016 2017 Asphalt Streets Maintained (miles) 200 204 205 Gravel Roads Maintained (miles) 5.5 5.5 5.5 Cul-de-sacs & Deadends Maintained 345 348 350 Road Markings/Striping (intersections) 160 165 168 Street Sweeping (miles) 396 400 400 Gravel Usage (tons) 1,085 1,200 1,200 Asphalt Usage (tons) 300 609 600 Spray Patcher - Rock (tons) 100 350 350 Sorav Patcher - Oil (aallons) 1.100 3.000 3.000 Department: Streets & Highways Director/Manager: Street Supervisor Actual Staffing Levels 2015 FTE Equivalents 4.88 Service Expenditures By Category Current 2016 5.20 Current 2016 $ 455,308 66,050 89,779 39,100 650,237 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 78 Budgeted 2017 5.90 Budgeted 2017 $ 492,334 66,050 90,989 42,100 691,473 ®Personal Services ■Supplies & Materials oOther Services / Charges 0Purchased Services Actual Actual Service Expenditures 2015 Personal Services $ 458,966 Supplies & Materials 57,001 Other Services / Charges 85,652 Purchased Services 28,105 TOTAL $ 629,724 Service Expenditures By Category Current 2016 5.20 Current 2016 $ 455,308 66,050 89,779 39,100 650,237 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 78 Budgeted 2017 5.90 Budgeted 2017 $ 492,334 66,050 90,989 42,100 691,473 ®Personal Services ■Supplies & Materials oOther Services / Charges 0Purchased Services Actual Current 2015 2016 31,704 31,900 $ 1.66 $ 1.70 $ 19.86 $ 20.38 Budgeted 2017 32,100 $ 1.80 $ 21.54 Fund: 0101 -General Cost Center: 43200 Activitv Description All Public Works Departments provide snow removal services for 198 miles of city streets and 330 cul-de-sacs. The goal is to provide convenient, reasonably safe travel and to prevent deterioration of the streets due to winter conditions. Process Used Snowplows, equipped with underbody plows, and salt brine sanders are used to clear city streets. The streets are cleared on a systematic basis as soon as practical after a snowstorm per city policy. Service Expenditure Highlights Department: Personal Services are allocated based on time spent removing snow and ice from roads, trails, and/or parking lots. The increase in Budget 2017 is due to the increase in personnel. Street Supervisor Actual Current Budgeted Performance Measures 2015 2016 2017 Miles of streets plowed 200 204 205 Cul-de-sacs 345 348 350 Sand/Salt Usage (tons) 1,325 1,814 2,000 Brine Usaqe (qal) 5,000 5,000 5,000 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 79 Actual $ 1.16 $ 13.94 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current 2016 31,900 $ 1.47 $ 17.67 Budgeted $ 1.48 $ 17.70 Department: Snow & Ice Director/Manager: Street Supervisor Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 3.95 2.65 2.75 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 172,102 $ 261,950 $ 271,226 Supplies & Materials 111,939 143,100 143,100 Other Services / Charges 157,537 157,537 152,931 Purchased Services 500 1,000 1,000 TOTAL $ 442,078 563,587 568,257 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 79 Actual $ 1.16 $ 13.94 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current 2016 31,900 $ 1.47 $ 17.67 Budgeted $ 1.48 $ 17.70 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 2017 as compared to Current 2016. Increase is due to the change in FTE's. Performance Measures Sign Compliant Upgrades (# of zones) Actual 2015 1 Current 2016 1 Budgeted 2017 1 Damaged/Repair/Replace (# of signs) 100 75 75 Upgrade Street Signs (6" to 9" signs) 75 125 125 All Parks and Trail Signs 125 12 12 Traffic Counts (locations) 52 52 52 Sign Inventory / ID'ed (# of zones) 1 1 1 Speed Limit Siqns (35mph) 25 20 20 Department: Street Signs Director/Manager: Street Supervisor Actual Current Staffing Levels 2015 2016 FTE Equivalents 1.30 1.41 Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 80 Actual 2015 31,704 $ 0.54 $ 6.45 Budgeted 2017 1.51 Budgeted 2017 $ 153,566 45,360 14,818 1,500 215,244 ®Personal Services ■Supplies & Materials OOther Services / Charges oPurchased Services Current 2016 31,900 $ 0.53 $ 6.40 Budgeted 2017 32,100 $ 0.56 $ 6.71 Actual Current Service Expenditures 2015 2016 Personal Services $ 155,893 $ 142,157 Supplies & Materials 34,441 45,360 Other Services / Charges 14,161 15,176 Purchased Services - 1,500 TOTAL 204,495 204,193 Service Expenditure By Category Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 80 Actual 2015 31,704 $ 0.54 $ 6.45 Budgeted 2017 1.51 Budgeted 2017 $ 153,566 45,360 14,818 1,500 215,244 ®Personal Services ■Supplies & Materials OOther Services / Charges oPurchased Services Current 2016 31,900 $ 0.53 $ 6.40 Budgeted 2017 32,100 $ 0.56 $ 6.71 Fund: 0101 -General Cost Center: 43400 Activity Description Under the Anoka County Cost Share Policy, the City of Andover is responsible for 1) the electrical cost of the overhead street lights at intersections and 2) the power of the traffic signal and maintenance costs. The City has wayside horns at the railroad tracks at Andover Blvd NW and Crosstown Blvd NW. Process Used Intersections are signalized at various locations within the community based on the Anoka County cost share policy and the need of the community. Wayside horns have been installed to reduce the train horn noise at the following locations: Andover Blvd NW and Crosstown Blvd NW. Service Expenditure Highlights 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 in actual costs and increased number of signals and EVP systems. Connexus Energy maintains the overhead street lights and 5 - 10 go out every year. Wayside horns require a monthly inspection/service visit and a bi-annual complete overview of the system. Department: Traffic Signals Director/Manager: City Engineer Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents N/A N/A N/A Actual Current Budgeted Performance Measures 2015 2016 2017 Traffic Signals: 21,384 Purchased Services 8,786 Within the Community 18 18 19 Shared (Anoka & Coon Rapids) 7 7 7 Wayside Horns 2 2 2 Department: Traffic Signals Director/Manager: City Engineer Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents N/A N/A N/A Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 81 Current 9nia Budgeted ')n17 �p - 26,000 27,000 9,000 10,000 35,000 37,000 ®Personal Services -- , ■Supplies &Materials OOther Services / Charges oPurchased Services Actual Inir .i1,/U4 $ 0.08 $ 0.95 Current 2016 31,900 $ 0.09 $ 1.10 Budgeted InI7 oz, l UU $ 0.10 $ 1.15 Actual Service Expenditures 2015 Personal Services $ - Supplies & Materials - Other Services / Charges 21,384 Purchased Services 8,786 TOTAL $ 30,170 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 81 Current 9nia Budgeted ')n17 �p - 26,000 27,000 9,000 10,000 35,000 37,000 ®Personal Services -- , ■Supplies &Materials OOther Services / Charges oPurchased Services Actual Inir .i1,/U4 $ 0.08 $ 0.95 Current 2016 31,900 $ 0.09 $ 1.10 Budgeted InI7 oz, l UU $ 0.10 $ 1.15 Fund: 0101 -General Cost Center: 43500 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 f►�7i] Current 2016 213 Budgeted NC Department: Street Lighting Director/Manager: City Engineer Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 82 Actual $ 0.08 $ 0.97 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services Current 2016 31,900 $ 0.10 $ 1.14 Budgeted $ 0.10 $ 1.20 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 30,664 36,000 38,000 Purchased Services - 400 400 TOTAL $ 30,664 36,400 38,400 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 82 Actual $ 0.08 $ 0.97 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services Current 2016 31,900 $ 0.10 $ 1.14 Budgeted $ 0.10 $ 1.20 Fund: 0101 -General Cost Center: 43600 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 2015 2016 2017 Number of Street Liahts Billed 1.248 1.260 1.270 Department: Street Lights Billed Director/Manager: City Engineer Staffing Levels FTE Equivalents Service Expenditures Personal Services Supplies & Materials Other Services & Charges Purchased Services TOTAL Actual Current Budgeted Actual Current Budgeted 2015 2016 2017 177,595 187,500 187,500 23,905 30,000 30,000 $ 201,500 217,500 217,500 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 83 Actual $ 0.53 $ 6.36 Is Personal Services ■Supplies & Materials OOther Services & Charges OPurchased Services Current Budgeted $ 0.57 $ 0.56 $ 6.82 $ 6.78 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. Department: Parks & Recreation Director/Manager: Parks Maintenance Supervisor Service Expenditures By Category Service Expenditure Highlights Budget 2017 includes an increase in the cost of health insurance, a COLA adjustment and any step changes for newer employees. Current 2016 was the first year that included $90k for park infrastructure replacements like playground structures, fencing, and parking lots. t Budgeted oPurchased Services 2017 53 332 27 41 Actual Current Budgeted 18 Expenditures Per Capita 2015 2016 2017 35 4 12/4 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services 1_ ■Supplies &Materials oOther Services / Charges oCapital Outlay Population -Estimates 31,704 31,900 32,100 Monthly $ 3.03 $ 3.28 $ 3.31 Annual $ 36.31 $ 39.41 $ 39.74 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 7.33 8.51 8.38 Total acreage mowed Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 771,497 $ 792,114 $ 812,849 Supplies & Materials 95,398 89,900 89,900 Other Services / Charges 209,082 220,733 218,281 Purchased Services 75,337 64,500 64,500 Capital Outlay - 90,000 90,000 TOTAL 1,151,314 1,257,247 1,275,530 Service Expenditures By Category Service Expenditure Highlights Budget 2017 includes an increase in the cost of health insurance, a COLA adjustment and any step changes for newer employees. Current 2016 was the first year that included $90k for park infrastructure replacements like playground structures, fencing, and parking lots. t Budgeted oPurchased Services 2017 53 332 27 41 Actual Current Budgeted 18 Expenditures Per Capita 2015 2016 2017 35 4 12/4 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services 1_ ■Supplies &Materials oOther Services / Charges oCapital Outlay Population -Estimates 31,704 31,900 32,100 Monthly $ 3.03 $ 3.28 $ 3.31 Annual $ 36.31 $ 39.41 $ 39.74 Number of playgrounds 38 41 Total soccer fields maintained 16 18 Miles of trail maintained 33 34 Ice Rinks/ Warminq Houses 12/4 12/4 84 Actual Curren Performance Measures 2015 2016 Number of City Parks maintained 52 53 Total acreage mowed 332 332 Ballfields maintained 29 27 Number of playgrounds 38 41 Total soccer fields maintained 16 18 Miles of trail maintained 33 34 Ice Rinks/ Warminq Houses 12/4 12/4 84 Fund: 0101 -General Cost Center: 45500 Activitv Description The City has several open spaces that could benefit from various forms of vegetation management. Activities included but not limited to prescribed burns, mowing, spot 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 sustainability. 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. Department: Natural Resource Preservation Director/Manager: Parks Maintenance Supervisor Actual Current Budgeted Performance Measures 2015 2016 2017 Number of City Open Space parcels 4 4 4 Total acreaqe manacled 170 170 170 Department: Natural Resource Preservation Director/Manager: Parks Maintenance Supervisor Service Expenditures By Categor Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 85 Actual nni G ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current 2016 31,900 $ 0.03 $ 0.32 Budgeted 9n47 JG, I V V $ 0.03 $ 0.32 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 0.00 0.03 0.03 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ - $ 2,596 $ 2,727 Supplies & Materials - 2,500 2,500 Other Services / Charges - 1,000 970 Purchased Services - 4,000 4,000 TOTAL - 10,096 10,197 Service Expenditures By Categor Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 85 Actual nni G ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current 2016 31,900 $ 0.03 $ 0.32 Budgeted 9n47 JG, I V V $ 0.03 $ 0.32 Fund: 0101 -General Cost Center: 46000 Activitv Description The Recycling Department provides recycling opportunities to all city residents. The goal is to provide this service in a cost effective manner. Process Used Refuse and recycling services are provided curbside by licensed haulers in an open hauling system. A drop off recycling site is provided by the City. Recycling bins are also available through the City. New recycling materials are offered as soon as they become feasible. Provides special educational programs for Andover schools and senior apartment complexes to promote waste reduction and recycling Service Expenditure Highlights Actual Current Actual 2015 included the paving of the entrance road leading to the recycling center. All other operations remain approximately the same. 2017 FTE Equivalents Actual Current Budgeted Performance Measures 2015 2016 2017 Schools with recycling bins 6 6 6 Recycling Days 12 12 12 Recvclina collection tonnaae 3.963 2.500 3.000 Department: Recycling Director/Manager: Recycling Coordinator Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ----------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 86 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services ®Capital Outlay Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.34 $ 0.30 $ 0.32 $ 4.04 $ 3.58 $ 3.81 Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 0.76 1.23 0.92 Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 47,100 $ 66,008 $ 69,965 Supplies & Materials 4,555 7,375 7,875 Other Services / Charges 3,041 2,681 2,881 Purchased Services 73,340 38,100 41,500 Capital Outlay - - - TOTAL 128,036 114,164 122,221 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ----------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 86 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services ®Capital Outlay Actual Current Budgeted 2015 2016 2017 31,704 31,900 32,100 $ 0.34 $ 0.30 $ 0.32 $ 4.04 $ 3.58 $ 3.81 Fund: 0101 -General Department: Unallocated Cost Center: 49100 Director/Manager: Finance Director Activity 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 Highlights Actual 2015 and Current 2016 included transfers to the Trail Capital Projects Fund for the construction of some trail segments. Service Expenditures By Catcgor �f— o Personal Services oSupplies & Materials •Other Services / Charges • Purchased Services •Other Uses Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents N/A N/A N/A Monthly Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 56,720 70,328 70,328 Purchased Services - - - Other Uses 200,000 250,000 - TOTAL 256,720 320,328 70,328 Service Expenditures By Catcgor �f— o Personal Services oSupplies & Materials •Other Services / Charges • Purchased Services •Other Uses ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 87 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 0.67 $ 0.84 $ 0.18 Annual $ 8.10 $ 10.04 $ 2.19 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 87 This page left blank intentionally. 88 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET SPECIAL REVENUE FUNDS DEFINITION: Special revenue funds are established to justify revenue sources to finance particular functions or projects. Revenue for these funds can come from a variety of sources, such as taxes, fees, gifts and grants or contributions from other governmental entities. Expenditures from these funds are normally restricted by statute, local ordinance, or grant agreements. The funds may be used for either operations or capital outlay as legal restrictions mandate. 89 This page left blank intentionally. 90 City of Andover Special Revenue Funds 2017 Budget Summary - All Special Revenue Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 607,404 $ 669,442 $ 669,442 $ 597,779 39,927 Actual 1 Adopted Estimate 1 Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 607,404 $ 669,442 $ 669,442 $ 597,779 39,927 40,000 40,000 40,000 - 37,500 - 37,500 695,681 671,700 669,400 687,200 7,533 7,500 5,300 5,800 854,396 805,500 795,000 796,500 1,597,537 1,562,200 1,509,700 1,567,000 1,597,537 2,204,941 527,207 82,383 210,983 414,926 1,235,499 300,000 1,535,499 1,562,200 2,231,642 1,509,700 2,179,142 1,567,000 2,164,779 483,086 497,086 515,791 85,570 79,920 89,020 256,035 236,035 240,680 481,597 405,522 469,929 56,000 56,000 66,000 1,362,288 1,274,563 1,381,420 378,398 1,740,686 306,800 1,581,363 305,000 1,686,420 Fund Balance, December 31 $ 669,442 $ 490,956 $ 597,779 $ 478,359 Change in Fund Balance $ 62,038 $ (178,486) $ (71,663) $ (119,420) 10% -27% -11% -20% 91 City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 380,792 $ 334,451 $ 334,451 $ 238,791 20,895 20,000 10,000 10,000 3,831 5,000 2,500 3,000 930 - - - 25,656 25,000 12,500 13,000 25,656 25,000 406,448 359,451 49,457 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 380,792 $ 334,451 $ 334,451 $ 238,791 20,895 20,000 10,000 10,000 3,831 5,000 2,500 3,000 930 - - - 25,656 25,000 12,500 13,000 25,656 25,000 406,448 359,451 49,457 22,610 5,064 18,900 8,230 78,800 9,246 14,850 71,997 135,160 71,997 135,160 Fund Balance, December 31 $ 334,451 $ 224,291 Change in Fund Balance $ (46,341) $ (110,160) -12% -33% 92 12,500 346,951 22,610 13,900 58,800 12,850 108,160 108,160 $ 238,791 $ (95,660) -29% 13,000 251;791 14,578 18,900 79,000 13,850 126,328 126;328 $ 125,463 $ (113,328) -47% Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Hi2hli2hts 2016 & 2017 includes funding for monument entrance signs. EDA Budget provides for ongoing maintenance around the Andover Station Development area. Department Head: City Administrator Gcncral Activitv Description To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. Process Used Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. The EDA is the primary authority involved in managing the City's four Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 93 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 2015 2016 2016 2017 Fund Balance, January 1 $ - Revenues Intergovernmental - Other Sources Transfers In - Total Revenues and Other Sources: - Total Available: - Expenditures Other Services and Charges - Other Uses Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 94 25,000 25,000 25,000 25,000 25,000 n/a n/a 25,000 25,000 25,000 25,000 25,000 n/a Fund: Community Development Block Grant Activity Type/Code: Special Revenue Expenditure Hi2hli2hts This was a new fund created in 2004 to track the Community Development Block Grant (CDBG) Rental Rehab program. In 2017, additional grant monies will be applied for to study areas that have access to city water but are not currently hooked up. Department Head: Community Development Dir. Gcncral Activitv Description The Rental Rehab program provides low-interest loans for the rehabilitation of rental housing units. This fund accounts for the loans disbursed, as well as the payments received. In 2008, a housing rehab program was started. Due to the lack of interest, the rental rehab program was terminated in 2012. Process Used Rehab Grants are received from CDBG and disbursed to qualified applicants. As payments come in, these funds create a revolving loan program and new loans are given out to qualified applicants. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 95 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 $ (48,364) $ 56,140 $ 56,140 $ 112,562 637,921 618,700 (1,079) - 813,009 784,000 1,449,851 1,402, 700 1,449,851 1,402, 700 1,401,487 1,458, 840 439,304 74,949 142,602 388,492 1,045,347 441,231 56,850 96,000 429,147 56,000 1,079,228 300,000 371,598 1,345,347 1,450, 826 $ 56,140 $ 8,014 Change in Fund Balance $ 104,504 $ (48,126) -216% -86% M 626,400 765,000 1,391,400 1,391,400 1,447,540 455,231 62,000 81,500 380,247 56,000 1,034,978 300,000 1,334,978 $ 112,562 $ 56,422 101% 632,200 775,000 1,407, 200 1,407, 200 1,519,762 481,368 59,300 89,000 406,479 66,000 1,102,147 300;000 1,402,147 $ 117,615 $ 5,053 4% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ (48,364) $ 56,140 $ 56,140 $ 112,562 637,921 618,700 (1,079) - 813,009 784,000 1,449,851 1,402, 700 1,449,851 1,402, 700 1,401,487 1,458, 840 439,304 74,949 142,602 388,492 1,045,347 441,231 56,850 96,000 429,147 56,000 1,079,228 300,000 371,598 1,345,347 1,450, 826 $ 56,140 $ 8,014 Change in Fund Balance $ 104,504 $ (48,126) -216% -86% M 626,400 765,000 1,391,400 1,391,400 1,447,540 455,231 62,000 81,500 380,247 56,000 1,034,978 300,000 1,334,978 $ 112,562 $ 56,422 101% 632,200 775,000 1,407, 200 1,407, 200 1,519,762 481,368 59,300 89,000 406,479 66,000 1,102,147 300;000 1,402,147 $ 117,615 $ 5,053 4% Fund: Community Center Activity Type/Code: Special Revenue Expenditure Hi2hli2hts 2009 was the first year the YMCA made a full lease payment of $635,000. The transfer out is the difference between the tax levied for the Community Center debt service and the total annual debt service for the Community Center The capital outlay expenditure for 2016 is for replacement of the rink rubber flooring ($36,000) in the hallways and locker rooms; and to crack seal the parking lot ($20,000). In 2017, $60,000 is to seal coat the parking lot and $6,000 is for painting the entrances. Department Head: Recreation Facility Manager Gcncral Activitv 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 2017 BUDGET CITY OF ANDOVER, MINNESOTA 97 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: $ 154,838 $ 144,771 $ 144,771 $ 136,041 317 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 154,838 $ 144,771 $ 144,771 $ 136,041 317 8,000 8,000 8,000 1,768 1,200 1,200 1,200 2,085 9,200 9,200 9,200 2,085 9,200 9,200 9,200 156,923 153,971 153,971 145,241 1,870 2,300 3,000 3,300 4,636 9,500 8,000 9,700 5,646 7,000 6,930 7,000 12,152 18,800 17,930 20,000 12,152 18,800 Fund Balance, December 31 $ 144,771 $ 135,171 Change in Fund Balance $ (10,067) $ (9,600) -7% -7% 98 17,930 $ 136,041 $ (8,730) -6% 20,000 $ 125,241 $ (10,800) -8% Fund: Drainage and Mapping Activity Type/Code: Special Revenue Expenditure Highlights Minimal changes are planned for this fund as monies are set aside for future mapping needs. Department Head: Dir of PW / City Engineer General Activitv Description The drainage and mapping activity provides the resource to maintain existing and develop new maps and mapping systems for the City. The City GIS is a key component in this mapping and data inventory task. Process Used Existing mapping systems and data are maintained manually in a reproducible format. The existing information is being converted to a digital format as is all new data which is developed for the City. All data will be accessible either manually or through a computerized application. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 99 City of Andover Special Revenue Funds Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ 2,295 $ 1,385 $ 1,385 $ 9,340 Revenues General Property Taxes Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 $ 2,295 $ 1,385 $ 1,385 $ 9,340 Revenues General Property Taxes 39,927 40,000 40,000 40,000 Investment Income (204) 100 100 100 Total Revenues: 39,723 40,100 40,100 40,100 Other Sources Transfers In - - - - Total Revenues and Other Sources: 39,723 40,100 40,100 40,100 Total Available: 42,018 41,485 41,485 49,440 Expenditures Personal Services 16,766 9,425 9,425 9,720 Supplies and Materials - 520 520 520 Purchased Services 23,702 22,035 22,035 12,780 Other Services and Charges 165 200 165 200 Total Expenditures: 40,633 32,180 32,145 23,220 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 40,633 32,180 32,145 23,220 Fund Balance, December 31 $ 1,385 $ 9,305 $ 9,340 $ 26,220 Change in Fund Balance $ (910) $ 7,920 $ 7,955 $ 16,880 -40% 572% 574% 181% we Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Exucnditurc Hi2hh2hts 2017 includes a reduction in annual funding to the LRRWMO. Department Head: Assistant City Engineer Gcncral Activitv 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 2017 BUDGET CITY OF ANDOVER, MINNESOTA In 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 $ 7,243 $ 6,831 $ 6,831 $ 3,431 - 12,500 88 100 - 6,500 - 12,500 100 100 - 6,500 Total Revenues: Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous $ 7,243 $ 6,831 $ 6,831 $ 3,431 - 12,500 88 100 - 6,500 - 12,500 100 100 - 6,500 Total Revenues: 88 19,100 100 19,100 Other Sources Transfers In - - - - Total Revenues and Other Sources: 88 19,100 100 19,100 Total Available: 7,331 25,931 6,931 22,531 Expenditures Supplies and Materials 500 6,500 - 6,500 Purchased Services - 12,500 3,500 12,500 Total Expenditures: 500 19,000 3,500 19,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 500 19,000 3,500 19,000 Fund Balance, December 31 $ 6,831 $ 6,931 $ 3,431 $ 3,531 Change in Fund Balance $ (412) $ 100 $ (3,400) $ 100 -6% 1 % -50% 3% 102 Fund: Forestry Activity Type/Code: Special Revenue Exucnditurc Hi2hli2hts This fund tracks forestry -related grants with state agencies like the Minnesota Department of Natural Resources (DNR) and administers the bare root tree sale. A tree sale is proposed for 2017. Department Head: Dir of PW / City Engineer General Activitv Description Forestry shall preserve Andover's forest resources and develop control plans to ensure preservation and/or restoration of these resources. Process Used The City utilizes the Natural Resources Technician to administer the annual bare root tree sale, coordinate various tree plantings with local organizations like the Eagle Scouts, and monitor preservation and disease tree management grants. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 103 City of Andover Special Revenue Funds Right of Way Management / Utility Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses $ 49,998 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses $ 49,998 $ 47,909 $ 47,909 $ 39,759 47,909 $ 39,689 $ 39,759 $ 27,135 20,000 20,000 20,000 727 500 500 500 27,862 20,500 20,500 20,500 20,500 27,862 20,500 20,500 77,860 68,409 68,409 60,259 21,680 9,820 9,820 10,125 - 500 500 500 7,941 11,200 11,200 11,400 330 400 330 400 29,951 21,920 21,850 22,425 - 6,800 6,800 5,000 Fund Balance, December 31 $ Change in Fund Balance $ 29,951 28,720 28,650 27,425 47,909 $ 39,689 $ 39,759 $ 32,834 (2,089) $ (8,220) $ (8,150) $ (6,925) -4% -17% -17% -17% 104 Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue Expenditure Hi2hli2hts The transfer to the Road & Bridge Capital Projects is for the degredation of roadways associated with right-of-way permits. Department Head: Dir of PW / City Engineer Gcncral Activitv Description The function of Right -of -Way Management is to provide for: management of the public rights-of-way and to recover the rights-of-way management costs; and to regulate the use of public rights-of-way by providers of telecommunication services, public utility services and the like, in a fair, efficient, competitively neutral and substantial uniform manner. Process Used To achieve this purpose, state law gives the City several powers to include requiring the following: 1. Require permits for work within the right-of-way. 2. Collect fees to recover costs associated with the permit including damages to the right-of-way. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 105 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 $ 57,236 $ 74,742 $ 74,742 $ 54,142 921 300 40,457 15,000 41,378 15,300 41,378 15,300 400 30,000 30,400 30,400 400 15,000 15,400 15,400 98,614 90,042 105,142 69,542 23,872 26,000 Total Expenditures and Other Uses: 23,872 26,000 Fund Balance, December 31 $ 74,742 $ 64,042 Change in Fund Balance $ 17,506 $ (10,700) 31% -14% 51,000 51,000 $ 54,142 $ (20,600) -28% 26,300 26,300 $ 43,242 $ (10,900) -20% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Uses Transfers Out $ 57,236 $ 74,742 $ 74,742 $ 54,142 921 300 40,457 15,000 41,378 15,300 41,378 15,300 400 30,000 30,400 30,400 400 15,000 15,400 15,400 98,614 90,042 105,142 69,542 23,872 26,000 Total Expenditures and Other Uses: 23,872 26,000 Fund Balance, December 31 $ 74,742 $ 64,042 Change in Fund Balance $ 17,506 $ (10,700) 31% -14% 51,000 51,000 $ 54,142 $ (20,600) -28% 26,300 26,300 $ 43,242 $ (10,900) -20% Fund: Charitable Gambling Activity Type/Code: Special Revenue Expenditure Hi2hli2hts This fund was created to track the donations received from the Andover Hockey Association and Andover Football Association from their gambling activities. Funding is used towards the Alexandra House, Youth First, Family of Promise, teen programing, etc.. Funding for these expenditures is dependent upon donations. Department Head: Finance Director Gcncral Activitv 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 2017 BUDGET CITY OF ANDOVER, MINNESOTA 107 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 $ 3,366 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out $ 3,366 $ 3,213 $ 3,213 $ 3,713 Fund Balance, December 31 $ 3,213 $ 3,513 $ 3,713 $ 9,413 5,000 5,000 17,000 1,481 300 500 500 10,894 5,300 5,500 17,500 5,500 10,894 5,300 17,500 14,260 8,513 8,713 21,213 11,047 5,000 5,000 17,000 Total Expenditures and Other Uses: 11,047 5,000 5,000 17,000 Fund Balance, December 31 $ 3,213 $ 3,513 $ 3,713 $ 4,213 Change in Fund Balance $ (153) $ 300 $ 500 $ 500 -5% 9% 16% 13% 108 Fund Construction Seal Coating Activity Type/Code: Special Revenue Expenditure Highlights The Construction Seal Coating Special Revenue Fund was established in 1996 and is utilized for the first application of crack seal and seal coat in new developments. Department Head: Dir of PW / City Engineer General Activitv Description The Construction Seal Coating Special Revenue Fund accounts for contributions associated with land development to be used for the respective developments first application of crack seal and seal coat. Process Used The City has an annual crack seal and seal coat program. Currently the City is divided into nine zones and these developments are done within four years of being constructed. Crack sealing is completed one year prior to seal coating. This allows the crack sealing material to cure and minimize bleed through once seal coated. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA W This page left blank intentionally. 110 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET DEBT SERVICE FUNDS DEFINITION: A debt service fund accounts for the accumulation of resources for, and the payment of general long-term principal and interest. Repayment of the debt through principal and interest payments to bond holders is backed by the full faith and credit of the government unit. n This page left blank intentionally. 112 City of Andover Debt Service Funds 2017 Budget - All Debt Service Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses $ 1,073,535 $ 1,217,300 $ 1,217,300 $ 1,308,862 2,134,650 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses $ 1,073,535 $ 1,217,300 $ 1,217,300 $ 1,308,862 2,134,650 2,100,413 2,100,413 1,610,047 (1,287) 2,000 (8,000) - 2,133,363 2,102,413 2,092,413 1,610,047 300,000 376,860 311,417 3005000 48,902 2,433,363 2,479,273 2,403,830 1,910,047 2,316,271 3,506,898 3,696,573 3,621,130 3,218,909 1,765,000 1,770,000 1,770,000 1,800,000 470,687 439,698 444,144 418,419 5,009 2,450 2,375 2,000 2,240,696 2,212,148 2,216,519 2,220,419 48,902 104,123 95,749 48,819 2,289,598 2,316,271 2,312,268 2,269,238 Fund Balance, December 31 $ 1,217,300 $ 1,380,302 $ 1,308,862 Change in Fund Balance $ 143,765 $ 163,002 $ 91,562 13% 13% 8% 113 $ 949,671 $ (359,191) -27% City of Andover Debt Service Funds Certificates/Capital Notes - 2012A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 373,049 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources: Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 373,049 $ 506,434 $ 506,434 $ 589,669 $ 589,619 $ 589,669 133,385 139,881 142,885 142,885 - 5,738 2,000 2,000 145,619 144,885 144,885 - 145,619 144,885 144,885 - 518,668 651,319 651,319 589, 669 - 50,000 50,000 535,000 11,700 11,200 11,200 5,350 534 500 450 500 12,234 61,700 61,650 540,850 Fund Balance, December 31 $ Change in Fund Balance $ 12,234 61,700 61,650 506,434 $ 589,619 $ 589,669 133,385 $ 83,185 $ 83,235 36% 16% 16% 114 48,819 589,669 $ (589,669) -100% Fund: 3211 Cost Center: 2012A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 540,350 $ 535,000 $ 5,350 General Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $585,000 of Capital Notes in 2012 to facilitate the purchase of new equipment. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 115 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 2015 2016 2016 2017 Fund Balance, January 1 $ 263,348 $ 303,366 $ 303,366 $ 314,986 Revenues General Property Taxes 295,803 295,470 295,470 295,260 Investment Income 1,351 - - - Total Revenues: 297,154 295,470 295,470 295,260 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 297,154 295,470 295,470 295,260 Total Available: 560,502 598,836 598,836 610,246 Expenditures Debt Service Principal 225,000 260,000 260,000 260,000 Interest 31,926 23,350 23,350 18,800 Other 210 500 500 500 Total Expenditures: 257,136 283,850 283,850 279,300 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 257,136 283,850 283,850 279,300 Fund Balance, December 31 $ 303,366 $ 314,986 $ 314,986 $ 330,946 Change in Fund Balance $ 40,018 $ 11,620 $ 11,620 $ 15,960 15% 4% 4% 5% Fund: 3212 Cost Center: 2014A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 278,800 $ 260,000 $ 18,800 2018 278,550 265,000 13,550 2019 278,200 270,000 8,200 2020 277,750 275,000 2,750 $ 1,113, 300 $ 1,070,000 $ 43,300 General Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $1,355,000 of Capital Notes in 2014 to facilitate the purchase of equipment. ------------------------------------------------ ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 117 City of Andover Debt Service Funds Certificates/Capital Notes - 2016 G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 $ - Revenues 152,529 General Property Taxes - Investment Income - Total Revenues: - Other Sources 157,469 Operating Transfers In - Total Revenues and Other Sources: - Total Available: - Expenditures Debt Service Principal - Interest - Other - Total Expenditures: - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 118 4,446 9,880 $ - $ 4,940 $ 147,589 $ - $ 4,940 $ 142,649 n/a n/a 2888% 4,940 - - 152,529 - - 152,529 - 9,386 - - 9,386 152,529 - 9,386 157,469 - 4,446 9,880 - 4,446 9,880 4,446 9,880 $ - $ 4,940 $ 147,589 $ - $ 4,940 $ 142,649 n/a n/a 2888% Fund: 3213 Cost Center: 2016A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 9,880 $ - $ 9,880 2018 134,683 126,000 8,683 2019 135,260 129,000 6,260 2020 134,791 131,000 3,791 2021 135,273 134,000 1,273 $ 549,887 $ 520,000 $ 29,887 General Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $520,000 of Capital Notes in 2016 to facilitate the purchase of equipment. ------------------------------------------------ ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA M 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 $ 55,568 $ 76,564 $ 76,564 $ - Revenues General Property Taxes 539,660 498,435 498,435 - Investment Income (3,730) - (4,000) - Total Revenues: 535,930 498,435 494,435 - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 535,930 498,435 494,435 - Total Available: 591,498 574,999 570,999 - Expenditures Debt Service Principal 500,000 470,000 470,000 - Interest 14,400 4,700 4,700 - Other 534 450 550 - Total Expenditures: 514,934 475,150 475,250 - Other Uses Operating Transfers Out - 104,123 95,749 - Total Expenditures and Other Uses: 514,934 579,273 570,999 - Fund Balance, December 31 $ 76,564 $ (4,274) $ - $ - Change in Fund Balance $ 20,996 $ (80,838) $ (76,564) $ - 38% -106% -100% n/a 120 Fund: 3303 Cost Center: 2012B G.O. Capital Improvement Refunding Bonds Activity Type/Code: Debt Service This fund will be closed in 2016. Department Head: Finance Director General Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $3,890,000 of General Obligation Bonds in 2004 to finance the purchase of the Public Works Facility from the Andover Economic Development Authority and the construction of Fire Station #3. This issue will be used to refund the original issue sold in 2004. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 121 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 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 $ 64,809 $ 115,802 $ 115,802 $ 170,203 Revenues General Property Taxes 974,822 977,332 977,332 974,418 Investment Income (5,810) - (6,000) - Total Revenues: 969,012 977,332 971,332 974,418 Other Sources Operating Transfers In 300,000 371,598 300,000 3005000 Total Revenues and Other Sources: 1,269,012 1,348,930 1,271,332 1,274,418 Total Available: 1,333,821 1,464,732 1,387,134 1,444,621 Expenditures Debt Service Principal 835,000 845,000 845,000 855,000 Interest 379,906 371,506 371,506 358,731 Other 3,113 500 425 500 Total Expenditures: 1,218,019 1,217,006 1,216,931 1,214,231 Other Uses Operating Transfers Out - - - - Fund Balance, December 31 $ 115,802 $ 247,726 $ 170,203 $ 230,390 Change in Fund Balance $ 50,993 $ 131,924 $ 54,401 $ 60,187 79% 114% 47% 35% 122 Fund: 3405 Cost Center: 2012C G.O. Abatement Bonds Department Head: Finance Director Activity Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 1,213,731 $ 855,000 $ 358,731 2018 1,211,482 870,000 341,482 2019 1,208,932 885,000 323,932 2020 1,215,982 910,000 305,982 2021 1,212,632 925,000 287,632 2022 1,213,932 945,000 268,932 2023 1,209,282 960,000 249,282 2024 1,213,000 985,000 228,000 2025 1,209,356 1,005,000 204,356 2026 1,208,275 1,030,000 178,275 2027 1,205,250 1,055,000 150,250 2028 1,205,147 1,085,000 120,147 2029 1,212,675 1,125,000 87,675 2030 1,213,400 1,160,000 53,400 2031 1,218,000 1,200,000 18,000 $18,171,076 $14,995,000 $ 3,176,076 General Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $19,580,000 of Lease Revenue Bonds in 2004 to finance the construction of a community center. Approximately 50% of the debt will be paid for by a long-term lease arrangement with the YMCA of Minneapolis. The YMCA will run a full service YMCA out of the Community Center building. This issue will be used to advance refund the refunding issues sold in 2006 and 2007 that refunded the 2004 issue. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 123 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 2015 2016 2016 2017 Fund Balance, January 1 $ 109,742 Revenues Intergovernmental - - - - Investment Income - - - - Total Revenues: - - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: - - - - Total Available: 109,742 - - - Expenditures Debt Service Principal 60,000 - - Interest 840 - - - Other - - - - Total Expenditures: 60,840 - - - Other Uses Operating Transfers Out 48,902 - - - Total Expenditures and Other Uses: 109,742 - - - Fund Balance, December 31 $ - $ - $ Change in Fund Balance $ (109,742) $ - $ - $ - -100% n/a n/a n/a 124 Fund: 3702 Cost Center: 2009A G.O. State Aid Refunding Bonds Department Head: Finance Director Activity Type/Code: Debt Service This fund was closed in 2015. General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $2,755,000 of G.O. State Aid Bonds in 2001 to finance state aid eligible road improvement projects in the City. This issue will be used to refund a portion of the original issue sold in 2001. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 125 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 Fund Balance, January 1 $ 207,019 $ 215,134 $ 215,134 $ 229,064 Revenues General Property Taxes 184,484 186,291 186,291 187,840 Investment Income 1,164 - - - Total Revenues: 185,648 186,291 186,291 187,840 Other Sources Operating Transfers In - 5,262 2,031 - Total Revenues and Other Sources: 185,648 191,553 188,322 187,840 Total Available: 392,667 406,687 403,456 416,904 Expenditures Debt Service Principal 145,000 145,000 145,000 150,000 Interest 31,915 28,942 28,942 25,658 Other 618 500 450 500 Total Expenditures: 177,533 174,442 174,392 176,158 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 177,533 174,442 174,392 176,158 Fund Balance, December 31 $ 215,134 $ 232,245 $ 229,064 $ 240,746 Change in Fund Balance $ 8,115 $ 17,111 $ 13,930 $ 11,682 4% 8% 6% 5% 126 Fund: 3901 Cost Center: 2010A G.O. Open Space Referendum Bonds Department Head: Finance Director Activit Type/Code: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2017 $ 175,658 $ 150,000 $ 25,658 2018 176,841 155,000 21,841 2019 177,507 160,000 17,507 2020 172,827 160,000 12,827 2021 172,870 165,000 7,870 2022 172,656 170,000 2,656 $ 1,048,359 $ 960,000 $ 88,359 Gcncral Activitv Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $1,660,000 of Open Space Referendum Bonds in 2010 to finance the purchase of land to remain as open space. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 127 This page left blank intentionally. 128 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET CAPITAL PROJECTS FUNDS DEFINITION: Capital Projects Funds can be used to account for acquisition or construction of major capital facilities financed mainly with governmental fund resources, general obligation debt, special assessments, special assessment debt, grants, or other resources that are not part of proprietary funds or trust funds. 129 This page left blank intentionally. 130 City of Andover Capital Projects Funds 2017 Budget Summary - All Capital Projects Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Bond Proceeds Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 19,915,930 $ 22,165,776 $ 22,165,776 $ 21,033,420 1,338,858 213,020 690,161 210,220 271,437 615,544 162,574 3,501,814 648,902 854,057 1,502,959 5,004,773 24,920,703 148,506 1,278,383 1,073,070 196,719 2,696,678 58,249 2,754,927 $ 22,165,776 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 27,062,247 370,000 4,193,000 2,085,000 196,719 6,844,719 90,358 6,935,077 $ 20,127,170 Change in Fund Balance $ 2,249,846 $ (2,038,606) 11% -9% 131 1,415,984 118,480 584,032 829,544 179,805 844,682 381,755 4,354,282 752,549 520,000 352,482 1,625,031 5,979,313 28,145,089 346,500 5,027,867 1,444,070 196,719 7,015,156 96,513 7,111,669 $ 21,033,420 $ (1,132,356) -5% 1,944,154 118,480 687,000 1,314,902 163,000 270,183 102,000 4,599,719 453,819 453,819 5,053,538 26,086,958 205,000 3,772,470 3,124,800 196,719 7,298,989 54,228 7,353,217 $ 18,733,741 $ (2,299,679) -11% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2016 Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Bond Proceeds Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 $ 19,915,930 $ 22,165,776 $ 22,165,776 $ 21,033,420 1,338,858 213,020 690,161 210,220 271,437 615,544 162,574 3,501,814 648,902 854,057 1,502,959 5,004,773 24,920,703 148,506 1,278,383 1,073,070 196,719 2,696,678 58,249 2,754,927 $ 22,165,776 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 27,062,247 370,000 4,193,000 2,085,000 196,719 6,844,719 90,358 6,935,077 $ 20,127,170 Change in Fund Balance $ 2,249,846 $ (2,038,606) 11% -9% 131 1,415,984 118,480 584,032 829,544 179,805 844,682 381,755 4,354,282 752,549 520,000 352,482 1,625,031 5,979,313 28,145,089 346,500 5,027,867 1,444,070 196,719 7,015,156 96,513 7,111,669 $ 21,033,420 $ (1,132,356) -5% 1,944,154 118,480 687,000 1,314,902 163,000 270,183 102,000 4,599,719 453,819 453,819 5,053,538 26,086,958 205,000 3,772,470 3,124,800 196,719 7,298,989 54,228 7,353,217 $ 18,733,741 $ (2,299,679) -11% 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 $ 2,637,713 42,342 35,034 309,873 387,249 387,249 3,024,962 2,290 109,860 112,150 58,249 170,399 $ 2,854,563 $ 216,850 8% 132 $ 2,854,563 30,000 50,000 67,756 147,756 147,756 3,002,319 40,000 40,000 85,096 125,096 $ 2,877,223 $ 22,660 1% $ 2,854,563 $ 2,841,345 286,072 25,000 231,598 542,670 542,670 3,397,233 430,792 40,000 470,792 85,096 555,888 $ 2,841,345 $ (13,218) 0% 30,000 25,000 70,471 125,471 125,471 2,966,816 43,000 43,000 54,228 97,228 $ 2,869,588 $ 28,243 1% Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 2,637,713 42,342 35,034 309,873 387,249 387,249 3,024,962 2,290 109,860 112,150 58,249 170,399 $ 2,854,563 $ 216,850 8% 132 $ 2,854,563 30,000 50,000 67,756 147,756 147,756 3,002,319 40,000 40,000 85,096 125,096 $ 2,877,223 $ 22,660 1% $ 2,854,563 $ 2,841,345 286,072 25,000 231,598 542,670 542,670 3,397,233 430,792 40,000 470,792 85,096 555,888 $ 2,841,345 $ (13,218) 0% 30,000 25,000 70,471 125,471 125,471 2,966,816 43,000 43,000 54,228 97,228 $ 2,869,588 $ 28,243 1% Fund: 4110 Cost Center: Water Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights Projects planned for 2017 include: New Development Projects $ 43,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. 2016 included the advance payment of permit fees to various funds, in which, the Water Trunk fund will get reimbursed through the assessment process with interest ($327,854). Projects for 2016 included: Water Main Extension - Country Oaks North $ 75,495 Water Main Extension - Bunker Lake Blvd 15,272 General Activitv 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 2017 BUDGET CITY OF ANDOVER, MINNESOTA 133 City of Andover Capital Projects Funds Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 5,541,793 27,195 75,978 96,094 199,267 400,000 599,267 6,141,060 1,035 58,095 59,130 59,130 $ 6,081,930 $ 540,137 10% 134 $ 6,081,930 20,000 50,000 12,415 82,415 400,000 482,415 6,564,345 110,000 110,000 110,000 $ 6,454,345 $ 372,415 6% $ 6,081,930 20,000 50,000 147,780 217,780 400,000 617,780 6,699,710 110,000 110,000 110,000 $ 6,589,710 $ 507,780 8% $ 6,589,710 105,000 50,000 12,912 167,912 400,000 567,912 7,157, 622 502,000 502,000 502,000 $ 6,655,622 $ 65,912 1% Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 5,541,793 27,195 75,978 96,094 199,267 400,000 599,267 6,141,060 1,035 58,095 59,130 59,130 $ 6,081,930 $ 540,137 10% 134 $ 6,081,930 20,000 50,000 12,415 82,415 400,000 482,415 6,564,345 110,000 110,000 110,000 $ 6,454,345 $ 372,415 6% $ 6,081,930 20,000 50,000 147,780 217,780 400,000 617,780 6,699,710 110,000 110,000 110,000 $ 6,589,710 $ 507,780 8% $ 6,589,710 105,000 50,000 12,912 167,912 400,000 567,912 7,157, 622 502,000 502,000 502,000 $ 6,655,622 $ 65,912 1% Fund: 4120 Cost Center: Sewer Trunk Activity Type/Code: Capital Projects Expenditure Highlights Projects planned for 2017 include: New Development Projects Lift Station #4 Upgrade Sanitary Sewer Extensions Replacement - Jet/Vac Truck Projects for 2016 included: Sanitary Sewer Extension - 7th Ave Sanitary Sewer Oversizing - Winslow Woods 2nd $ 117,000 50,000 105,000 230,000 $ 502,000 $ 29,877 64,725 Department Head: City Engineer General Activitv 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 2017 BUDGET CITY OF ANDOVER, MINNESOTA 135 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 2015 2016 2016 2017 Fund Balance, January 1 $ (64,418) $ (63,357) $ (63,357) $ (64,157) Revenues Investment Income (807) - (800) - Miscellaneous 1,868 - - - Total Revenues: 1,061 - (800) - Other Sources Transfers In - - - - Total Revenues and Other Sources: 1,061 - (800) - Total Available: (63,357) (63,357) (64,157) (64,157) Expenditures Other Services and Charges - - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - - - Fund Balance, December 31 $ (63,357) $ (63,357) $ (64,157) $ (64,157) Change in Fund Balance $ 1,061 $ - $ (800) $ - -2% 0% 1% 0% 136 Fund: 4130 Cost Center: Storm Sewer Activity Type/Code: Capital Projects Expenditure Highlights No expenditures planned for 2017. Department Head: City Engineer General Activitv Description The Storm Sewer Capital Projects Fund accounts for storm sewer fees and improvements as part of development and ongoing maintenance. Process Used The storm sewer system is continually reviewed by Public Works and Engineering through studies of storm water runoff and drainage patterns. Note: There is one part of the City where a special storm sewer trunk area assessment is required as part of any new development. This will be used to fund the oversizing of the storm sewer that was constructed under Project #93-3: Xeon Street Trunk Storm Sewer. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 137 City of Andover Capital Projects Funds Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,998,161 $ 5,511,747 $ 5,511,747 $ 3,925,030 1,026,577 493,996 194,797 65,307 1,780,677 48,902 104,791 153,693 1,934,370 6,932,531 1,103, 853 316,931 1,420,784 1,420,784 $ 5,511,747 Change in Fund Balance $ 513,586 10% 138 1,150,984 1,053,000 813,743 25,000 3,042,727 6,800 6,800 3,049,527 8,561,274 4,178,000 4,178,000 4,178,000 1,150, 984 200,000 829,544 45,000 358,955 2,584,483 6,800 6,800 2,591,283 8,103,030 4,178,000 4,178,000 4,178,000 $ 4,383,274 $ 3,925,030 $ (1,128,473) $ (1,586,717) -20% -29% 1,179,154 552,000 1,314,902 35,000 3,081,056 5,000 5,000 3,086,056 7,011,086 3,657,000 3,657,000 3,657,000 $ 3,354,086 $ (570,944) -15% Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,998,161 $ 5,511,747 $ 5,511,747 $ 3,925,030 1,026,577 493,996 194,797 65,307 1,780,677 48,902 104,791 153,693 1,934,370 6,932,531 1,103, 853 316,931 1,420,784 1,420,784 $ 5,511,747 Change in Fund Balance $ 513,586 10% 138 1,150,984 1,053,000 813,743 25,000 3,042,727 6,800 6,800 3,049,527 8,561,274 4,178,000 4,178,000 4,178,000 1,150, 984 200,000 829,544 45,000 358,955 2,584,483 6,800 6,800 2,591,283 8,103,030 4,178,000 4,178,000 4,178,000 $ 4,383,274 $ 3,925,030 $ (1,128,473) $ (1,586,717) -20% -29% 1,179,154 552,000 1,314,902 35,000 3,081,056 5,000 5,000 3,086,056 7,011,086 3,657,000 3,657,000 3,657,000 $ 3,354,086 $ (570,944) -15% Fund: 4140 Cost Center: Road and Bridge Activity Type/Code: Capital Projects Expenditure Highlights Some of the major 2017 projects are as follows: Annual street seal coat $ 725,000 Annual street crack seal 143,000 New/ reconstruct routes 1,236,000 MSA- New/ reconstruct routes 1,300,000 Pedestrian trail maintenance 50,000 Pedestrian trail reconstruction 60,000 Pedestrian curb ramp replacement 15,000 LED Crosswalk Warning system 21,000 Annual pavement markings 42,000 Gravel road improvements 15,000 Curb replacement 50,000 $ 3,657,000 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 Department Head: City Engineer General Activitv Description The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Process Used Construction projects are identified by the capital improvement process and contained in the five-year Capital Improvement Plan (CIP). The council approves the CIP annually, thereby initiating a process of feasibility study, preparation of plans and specifications, public hearings, ordering of the project, bidding the project and construction. This fund also accounts for the pavement management program, which includes annual seal coating, crack sealing and overlays for roads. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 139 City of Andover Capital Projects Funds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 334,566 $ 376,632 $ 376,632 $ 376,120 61,918 4,584 170,144 21,289 257,935 257,935 592,501 15,000 15,000 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 334,566 $ 376,632 $ 376,632 $ 376,120 61,918 4,584 170,144 21,289 257,935 257,935 592,501 15,000 15,000 15,000 - 3,500 - 144,950 365,830 147,600 - 7,500 100,000 159,950 391,830 262,600 159,950 536,582 391,830 768,462 262,600 638,720 43,811 15,000 15,000 15,000 172,058 258,000 377,342 584,800 215,869 273,000 392,342 599,800 215,869 273,000 392,342 599,800 $ 376,632 $ 263,582 $ 376,120 $ 38,920 $ 42,066 $ (113,050) $ (512) $ (337,200) 13% -30% 0% -90% 140 Fund: 4150 Cost Center: Park Dedication Projects Activity Type/Code: Capital Projects Exucnditurc Hi2hli2hts 2017 Projects include: Annual Miscellaneous Projects $ 15,000 Pine Hills North - Phase II 100,000 Fox Meadows Park - Renovation 457,300 Irrigation Projects - Small Parks 20,000 Nordeen's Park - Basketball Court 7,500 $ 599,800 2016 Projects include: Annual Miscellaneous Projects $ 15,000 Timber Trails Park Renovation 284,000 Terrace Park - Irrigation & Water Service 35,000 Mapleview Park - Playground structure 26,910 Sunshine Park - Scoreboard Wring & Design 23,000 $ 383,910 Department Head: City Engineer Gcncral Activitv Dcsciution The Park Dedication Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's park system. Process Used The Park and Recreation Commission evaluates the needs of the community with regard to park and recreation facilities. Recommendations are made to the City Council and projects are then placed into the annual City Capital Improvement Plan. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 141 City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 846,411 $ 779,066 $ 779,066 $ 671,110 10,843 6,000 5,000 5,000 135,003 - - - 145,846 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 846,411 $ 779,066 $ 779,066 $ 671,110 10,843 6,000 5,000 5,000 135,003 - - - 145,846 6,000 5,000 5,000 - 104,123 95,749 - 145,846 110,123 100,749 5,000 992,257 889,189 879,815 676,110 16,472 - 2,600 - 196,719 196,719 196,719 196,719 213,191 196,719 199,319 196,719 - - 9,386 - 213,191 196,719 208,705 196,719 $ 779,066 $ 692,470 $ 671,110 $ 479,391 $ (67,345) $ (86,596) $ (107,956) $ (191,719) -8% -11% -14% -29% 142 Fund: 4160 Cost Center: Building Fund Activity Type/Code: Capital Projects Expenditure Highlights In 2013, the City has signed a contract for deed to purchase some land adjacent to the city hall / public works campus. As part of that agreement, annual payments will be made starting in 2013 with final payment in 2018. 2017 $ 196,719 2018 196,719 $ 393,438 Department Head: Finance Director General Activitv Description The Building Fund accounts for miscellaneous building improvement projects for all facilities, including land acquisitions. Process Used Facilities are reviewed annually for non-recurring repairs or for future facility needs. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 143 City of Andover Capital Projects Funds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 134,963 $ 347,400 $ 347,400 $ 343,474 2,124 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 134,963 $ 347,400 $ 347,400 $ 343,474 2,124 400 3,600 3,000 39,433 37,300 99,474 39,200 41,557 37,700 103,074 42,200 200,000 - 250,000 - 241,557 37,700 353,074 42,200 376,520 385,100 700,474 385,674 6,092 - - - 23,028 357,000 357,000 565,000 29,120 357,000 357,000 565,000 29,120 565,000 357,000 357,000 $ 347,400 $ 28,100 $ 343,474 $ (179,326) Change in Fund Balance $ 212,437 $ (319,300) $ (3,926) $ (522,800) 157% -92% -1% -152% 144 Fund: 4170 Cost Center: Trail & Transportation Activity Type/Code: Capital Projects Expenditure Hi2hli2hts Projects planned for 2017 include: 8' Bituminous trail along Crosstown Blvd - Bunker Lake Blvd NW to 140th Ave - $565,000 Projects planned for 2016 include: 8' Bituminous trail along Crosstown Blvd - Coon Creek bridge to South Coon Creek Drive - $118,000 5' Concrete sidewalk along Bunker Lake Blvd - Yukon St to Hidden Creek Park North - $52,000 5' Concrete sidewalk along Bunker Lake Blvd - Crosstown Blvd to Yukon St - $187,000 Department Head: Dir of PW / City Engineer General Activitv 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 2017 BUDGET CITY OF ANDOVER, MINNESOTA 145 City of Andover Capital Projects Funds Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 886,768 $ 1,051,687 $ 1,051,687 $ 977,324 250,363 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 886,768 $ 1,051,687 $ 1,051,687 $ 977,324 250,363 250,000 12,872 4,000 4,414 2,000 267,649 256,000 113,150 - 380,799 256,000 1,267,567 1,307,687 142,414 340,000 73,466 20,000 215,880 360,000 215,880 360,000 $ 1,051,687 $ 947,687 Change in Fund Balance $ 164,919 $ (104,000) 19% -10% 146 250,000 6,000 15,300 271,300 14,337 285,637 1,337,324 340,000 20,000 360,000 360,000 $ 977,324 $ (74,363) -7% 750,000 5,000 2,000 757,000 48,819 805,819 1,783,143 205,000 680,000 885,000 885,000 $ 898,143 $ (79,181) -8% Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Exucnditurc Hi2hli2hts Projects outlined in the 2017 - 2021 CIP for year 2017 using the Capital Equipment Reserve Capital Projects Fund include: Using 2017 Capital Projects Reserve / levy: Annual Parking Lot Maintenance Replacement - Planning Vehicle #7 Replacement - Carpet / Tile Replacement - Security System Public Works Relocation / Expansion Plan HD Upgrade - City Hall Council Chambers Replacement - Extrication (Rescue) Equipment Emergency Operations Center Improvement Replacement - Emergency Sirens Replacement - One Ton Truck w/ Plow #134 New - One Ton Truck w/ Reg. Box w/ Lift & Plow New - Bobcat Paver Sign Design Software & Plotter ACC / YMCA Expansion Plan New - Trail Machine Replacement - One Ton Crew Cab Pickup #502 Using 2016 Capital Projects Reserve / levy: Annual Parking Lot Maintenance Public Works/Community Center Master Planning Replacement - SCBA's Add / Replace server Replacement - 800 MHz Radios $ 30,000 30,000 10,000 100,000 50,000 60,000 80,000 40,000 45,000 80,000 55,000 20,000 10,000 75,000 150,000 50,000 $ 885,000 $ 30,000 25,000 250,000 20,000 35,000 $ 360,000 Department Head: Finance Director Gcncral Activitv Description Resources for this fund come from residual fund transfers, interest earnings, and property tax (capital) levy. Process Used During 2016 and 2017 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. 2017 includes a Capital Equipment Purchases levy of $500,000 to purchase equipment with levy dollars instead of issuing debt. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 147 City of Andover Capital Projects Funds 2014 G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 $ 112,513 $ 25,223 $ 25,223 Revenues Investment Income 681 - - Other Sources Transfers In - - - Total Revenues and Other Sources: 681 - - Total Available: 113,194 25,223 25,223 Expenditures Capital Outlay 87,971 - 25,223 Other Uses Operating Transfers Out - - - Total Expenditures and Other Uses: 87,971 - 25,223 Fund Balance, December 31 $ 25,223 $ 25,223 $ - Change in Fund Balance $ (87,290) $ - $ (25,223) n/a 0% -100% 148 n/a Fund: 4212 Cost Center: 2014 G.O. Capital Notes Activity Type/Code: Capital Projects Exucnditurc Hi2hli2hts The following is a list of equipment purchased with a 2014 Capital Note. Capital Note. Vehicle / Equipment Replacements: New - Mobile Vehicle Lifts $ 24,000 Survey Equipment 32,000 Replacement - Ladder Truck #11 1,100,000 Replacement - Bobcat #610 36,000 Replacement - Dump Truck w/ Snow Removal Equipment 150,000 Replacement - Fire Utility #4 32,000 Replacement - Fire Utility #5 32,000 Replacement - Toro Groundmaster #559 35,000 Replacement - One Ton Truck w/ Plow #503 65,000 New - Snowblower Attachment - Belos 23,000 Replacement - Snowblower Attachment - Bobcat 7,000 New - Add Rear Wing to Plow Truck 30,000 $ 1,566,000 This fund was closed in 2016. Department Head: Finance Director General Activitv Description This fund accounts for major capital equipment purchases. Resources for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5 -year duration and debt service is funded via the annual tax levy. Process Used During the 2014 budget process it was determined that various capital equipment was necessary. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 149 City of Andover Capital Projects Funds 2016 G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 $ - Revenues 1,005 - Investment Income - Other Sources 521,005 Bond Proceeds - Total Revenues and Other Sources: - Total Available: - Expenditures 521,005 - Purchased Services - Capital Outlay - Total Expenditures: - Other Uses n/a n/a Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 150 - 1,005 - 580,000 520,000 580,000 521,005 580,000 521,005 - 30,000 6,500 550,000 514,505 580,000 521,005 - 580,000 521,005 - n/a n/a n/a Fund: 4213 Cost Center: 2016 G.O. Capital Notes Activity Type/Code: Capital Projects Exucnditurc Hi2hli2hts 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 This fund was closed in 2016. Department Head: Finance Director General Activitv Description This fund accounts for major capital equipment purchases. Resources for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5 -year duration and debt service is funded via the annual tax levy. Process Used During the 2016 budget process it was determined that various capital equipment was necessary. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 151 City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Tax Increments Intergovernmental Investment Income Total Revenues: Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 3,546,286 213,020 15,423 56,778 285,221 636,116 921,337 4,467,623 109,554 109,554 109,554 $ 4,358,069 $ 811,783 23% 152 $ 4,358,069 20,000 20,000 20,000 4,378,069 750,000 750,000 750,000 $ 3,628,069 $ (730, 000) -17% $ 4,358,069 118,480 35,000 153,480 338,145 491,625 4,849,694 401,475 401,475 401,475 $ 4,448,219 $ 90,150 2% $ 4,448,219 118,480 35,000 153,480 153,480 4,601,699 100,470 750,000 850,470 850,470 $ 3,751,229 $ (696, 990) -16% Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 Revenues Tax Increments Intergovernmental Investment Income Total Revenues: Other Sources Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 3,546,286 213,020 15,423 56,778 285,221 636,116 921,337 4,467,623 109,554 109,554 109,554 $ 4,358,069 $ 811,783 23% 152 $ 4,358,069 20,000 20,000 20,000 4,378,069 750,000 750,000 750,000 $ 3,628,069 $ (730, 000) -17% $ 4,358,069 118,480 35,000 153,480 338,145 491,625 4,849,694 401,475 401,475 401,475 $ 4,448,219 $ 90,150 2% $ 4,448,219 118,480 35,000 153,480 153,480 4,601,699 100,470 750,000 850,470 850,470 $ 3,751,229 $ (696, 990) -16% Fund: 4501 Cost Center: Tax Increment Projects Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights 2017 Budgeted expenditures include: Redevelopment Site Purchases $ 750,000 Pay -As -You -Go Note 58,623 Administration 41,847 $ 850,470 2016 expenditures include: Pay -As -You -Go Note $ 58,623 Soil Corrections 35,000 Administration 31,847 Decertification payback 276,005 $ 401,475 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. TIF District 1-3 and TIF District 1-4 was decertified in 2016. General Activitv Description The Tax Increment Projects Fund accounts for activities in TIF districts 1-1, 1-2, 1-3, 1-4, 1-5 and 1-6 and all TIF land sales and expenditures to reach the goals of the TIF district plans. Process Used Promotion and expansion of the commercial / industrial tax base through redevelopment of land. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 153 City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ 705,751 Revenues Special Assessments Investment Income Total Revenues: Other Sources Transfers In - Total Revenues and Other Sources: 136,402 Total Available: Expenditures Other Services and Charges 1,368 Other Uses Operating Transfers Out - $ 840,785 $ 840,785 $ 925,245 126,628 50,000 77,960 - 9,774 3,000 6,500 5,000 136,402 53,000 84,460 5,000 53,000 84,460 5,000 842,153 893,785 925,245 930,245 Total Expenditures and Other Uses: 1,368 Fund Balance, December 31 $ 840,785 Change in Fund Balance $ 135,034 19% 154 $ 893,785 $ 53,000 6% $ 925,245 $ 84,460 10% $ 930,245 $ 5,000 1% Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 $ 705,751 Revenues Special Assessments Investment Income Total Revenues: Other Sources Transfers In - Total Revenues and Other Sources: 136,402 Total Available: Expenditures Other Services and Charges 1,368 Other Uses Operating Transfers Out - $ 840,785 $ 840,785 $ 925,245 126,628 50,000 77,960 - 9,774 3,000 6,500 5,000 136,402 53,000 84,460 5,000 53,000 84,460 5,000 842,153 893,785 925,245 930,245 Total Expenditures and Other Uses: 1,368 Fund Balance, December 31 $ 840,785 Change in Fund Balance $ 135,034 19% 154 $ 893,785 $ 53,000 6% $ 925,245 $ 84,460 10% $ 930,245 $ 5,000 1% Fund: 4601 Cost Center: Permanent Improvement Revolving Activity Type/Code: Capital Projects Expenditure Highlights No expenditures are planned for 2017. Department Head: Finance Director General Activitv Description The Permanent Improvement Revolving (PIR) Fund serves as a long-term funding source for large improvement expenditures. These funds can be used to finance infrastructure improvements for new developments if requested instead of bonding for them. Process Used The City has issued four bonds totaling $15.4 million thru 2008 in the PIR Fund for large capital projects. This fund has collected $19.12 million of special assessments over the past 15 years. The annual cash flow of this fund is intended to eliminate unfunded projects through effective management of debt payments and project expenditures. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 155 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 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Fund Balance, January 1 $ 235,423 $ 2,031 $ 2,031 $ Revenues Investment Income (1,731) - - Other Sources Transfers In - - - Total Revenues and Other Sources: (1,731) - - Total Available: 233,692 2,031 2,031 Expenditures Capital Outlay 231,661 - - Other Uses Operating Transfers Out - 5,262 2,031 Total Expenditures and Other Uses: 231,661 5,262 2,031 Fund Balance, December 31 $ 2,031 $ (3,231) $ - $ Change in Fund Balance $ (233,392) $ (5,262) $ (2,031) $ -99% -259% -100% 156 n/a Fund: 4901 Cost Center: 2010A G.O. Open Space Referendum Bonds Activity Type/Code: Capital Projects Exucnditurc Hi2hli2hts Over the past four years, four parcels have been purchased for the preservation of open space in the City of Andover. The remaining funds ($2,031) were transferred to the Open Space Referendum Bonds Debt Service Fund to assist in the debt payments in 2016. Department Head: Finance Director Gcncral Activitv Description This fund is used to finance various land acquisitions for open space preservation within the City of Andover through the use of G.O. Open Space Referendum Bonds. Process Used An Open Space Advisory Commission has been created to establish both short and long term goals, in addition to, determining the criteria for which to acquire open space. ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 157 This page left blank intentionally. 158 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET ENTERPRISE FUNDS DEFINITION: Governments establish enterprise funds to account for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. 159 This page left blank intentionally. 160 City of Andover Enterprise Funds 2017 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest 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 $ 6,225,766 $ 6,910,106 $ 6,910,106 $ 7,275,072 5,095,857 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 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 $ 6,225,766 $ 6,910,106 $ 6,910,106 $ 7,275,072 5,095,857 4,912,500 57,291 56,000 16,055 13,000 4,650 3,500 - 16,000 50,277 67,000 5,224,130 5,068,000 58,249 85,096 5,282,379 5,153,096 11,508,145 12,063,202 951,162 1,000,820 216,414 289,200 1,924,080 2,192,448 87,475 - 821,978 833,101 4,001,109 4,315,569 596,930 596,930 Total Expenditures and Other Uses: 4,598,039 4,912,499 Unrestricted Net Assets, December 31 $ 6,910,106 $ 7,150,703 Change in Unrestricted Net Assets $ 684,340 $ 240,597 11% 3% on 5,046,869 46,000 13,000 3,500 16,000 67,000 5,192,369 85,096 5,277,465 12,187,571 1,000,820 289,200 2,192,448 833,101 4,315,569 596,930 4,912,499 $ 7,275,072 $ 364,966 5% 5,119,626 46,000 13,000 16,000 67,000 5,261,626 54,228 5,315,854 12,590,926 1,025,217 308,200 2,273,323 260,000 828,751 4,695,491 596,930 5,292,421 $ 7,298,505 $ 23,433 0% City of Andover Enterprise Funds Water Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest 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 $ 2,561,528 $ 3,040,230 $ 3,040,230 $ 3,314,427 2,524,089 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2015 2016 2016 2017 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 $ 2,561,528 $ 3,040,230 $ 3,040,230 $ 3,314,427 2,524,089 2,345,484 25,353 15,000 16,055 13,000 4,650 3,500 - 6,000 48,509 67,000 2,618,656 2,449,984 58,249 85,096 2,676,905 2,535,080 5,238,433 5,575,310 421,575 446,234 179,464 229,700 622,073 703,800 2,863 - 821,978 833,101 2,047,953 2,212,835 150,250 150,250 Total Expenditures and Other Uses: 2,198,203 2,363,085 Unrestricted Net Assets, December 31 $ 3,040,230 $ 3,212,225 Change in Unrestricted Net Assets $ 478,702 $ 171,995 19% 6% 162 2,447,686 15,000 13,000 3,500 6,000 67,000 2,552,186 85,096 2,637,282 5,677,512 446,234 229,700 703,800 833,101 2,212,835 150,250 2,363,085 $ 3,314,427 $ 274,197 9% 2,433,052 15,000 13,000 6,000 67,000 2,534,052 54,228 2,588,280 5,902,707 457,216 238,200 747,415 15,000 828,751 2,286,582 150,250 2,436,832 $ 3,465,875 $ 151,448 5% Fund: 5100 -Water Cost Center: 48100 Department: Water Director/Manager: Utilities Supervisor Activity Description Actual Current Budgeted Operate and maintain the City's water system including WTP, wells, towers and Staffing Levels 2015 2016 2017 water mains. Provide a continuous, potable, bacteria free water supply at proper FTE Equivalents 4.52 4.63 4.58 pressure levels. Maintain customer water meters and respond to other service requests. Maintain water distribution for fire protection system needs. Conform to Actual Current Budgeted all State and Federal monitoring rules, provide tours and information to the public. Service Expenses 2015 2016 2017 Personal Services $ 421,576 $ 446,234 $ 457,216 Process Used Supplies & Materials 179,463 229,700 238,200 Operate wells and WTP in a manner that ensures a safe, clean and adequate water Other Services / Charges 377,176 414,300 401,365 supply, that will meet peak daily demands and fire protection demands. Maintain Purchased Services 243,031 289,500 346,050 wells, treatment facility, and related infrastructure. Operate and maintain chemical Capital Outlay - - 15,000 feed equipment. Collect, analyze and record water samples daily. Maintain, Debt Service 798,844 833,101 828,751 test and repair water meters. Respond to emergencies 24 hours a day. Work Other Uses 233,619 - - with contractors to locate watermains, locate and operate gate valves, monitor TOTAL $ 2,253,709 $ 2,212,835 $ 2,286,582 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, Service Expenses By Category operate and clean gate valves to ensure proper operation. ■ Personal Services Service Expense Highlights ■Supplies & Materials Budget 2017 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 []Other Services/ Charges meter costs are rising and starting to replace older meters. 13 Purchased Services ■ Capital Outlay Actual Current Budgeted Performance Measures 2015 2016 2017 []Debt Service Number of connections 6,475 6,572 6,676 13 Other Uses Number of wells 8 8 8 Number of elevated storage tanks 2 2 2 Water Treatment Facility 1 1 1 Expenses Per Connection Actual Current Budgeted Miles of water main 116 117.5 119 2015 2016 2017 Number of hydrants 1,219 1,233 1,250 Connections 6,475 6,572 6,676 Number of valves 2,884 2,919 2,980 Monthly $ 29.01 $ 28.06 $ 28.54 Annual $ 348.06 $ 336.71 $ 342.51 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 163 City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 3,495,412 $ 3,618,050 $ 3,618,050 $ 3,668,547 2,129,201 30,934 2,160,135 2,142,281 40,000 10,000 2,192, 281 2,142,281 30,000 10,000 2,182,281 2,215,411 30,000 10,000 2,255,411 2,160,135 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 3,495,412 $ 3,618,050 $ 3,618,050 $ 3,668,547 2,129,201 30,934 2,160,135 2,142,281 40,000 10,000 2,192, 281 2,142,281 30,000 10,000 2,182,281 2,215,411 30,000 10,000 2,255,411 2,160,135 2,192,281 2,182,281 2,255,411 5,655,547 5,810,331 5,800,331 5,923,958 316,472 19,756 1,172,840 81,749 1,590,817 Transfers Out 446,680 Total Expenditures and Other Uses: 2,037,497 Unrestricted Net Assets, December 31 $ 3,618,050 Change in Unrestricted Net Assets $ 122,638 4% 164 337,491 337,491 346,626 31,300 31,300 36,800 1,316,313 1,316,313 1,348,912 - - 245,000 1,685,104 1,685,104 1,977,338 446,680 446,680_ 446,680 2,131,784 2,131,784 2,424,018 $ 3,678,547 $ 3,668,547 $ 3,499,940 $ 60,497 $ 50,497 $ (168,607) 2% 1 % -5% Fund: 5200 -Sanitary Sewer Cost Center: 48200 Activitv Description City sewage is collected through a pipe and lift station network to large Metro City Sewer interceptor pipes that carry it to the Metro Treatment Plant for processing. The sewer division inspects, cleans, and maintains the City's collection system which includes breaks in pipes, manholes, and lift stations. Sewer backups caused by blockage due to debris or breaks in pipe are cleaned and/or repaired immediately. This department maintains the integrity of the entire sanitary sewer system. Process Used Inspect all lift stations five days per week. Clean one-quarter of the City's sewer collection system via jetting and vacuuming each year. City has implemented a televising program of the collection system that analyzes the entire system over a five year period. A spot check program checks flows in problem areas. Start 1/1 program to monitor inflow and infiltration into sewer system. Clean known problem area once per month. Monitor inspection and testing of all new sewer lines and manholes before accepting from contractor. Respond to and record all requests from customers, respond to emergencies 24 hours a day. Contract out all major system repairs. Service Expense Highlights In Budgeted 2017, the Metropolitan Waste Control Commission has increased the waste fee by 3% ($33,000). Also, capital outlay consists of one-half of the purchase of a new vactor truck, sharing the cost with the Sewer Trunk Capital Projects Fund. Actual Current Budgeted Performance Measures 2015 2016 2017 Number of connections 7,381 7,482 7,582 Number of lift stations 9 9 9 Miles of sewer main 96 96 97 Number of sewer manholes 2.289 2.304 2.320 Department: Sanitary Sewer Director/Manager: Utility Supervisor Service Expenses By Category Budgeted Budgeted 36,800 95,940 1,252,972 245,000 446,680 $ 2,424,018 ■Personal Services ■Supplies & Materials 130ther Services / Charges oPurchased Services ■Capital Outlay ®Other Uses Actual Current Staffing Levels 2015 2016 FTE Equivalents 3.06 3.38 7,381 Actual Current Service Expenses 2015 2016 Personal Services $ 316,472 $ 337,491 Supplies & Materials 19,756 31,300 Other Services / Charges 93,246 97,652 Purchased Services 1,079,594 1,218,661 Capital Outlay - - Other Uses 594,229 446,680 TOTAL $ 2,103,297 $ 2,131,784 Service Expenses By Category Budgeted Budgeted 36,800 95,940 1,252,972 245,000 446,680 $ 2,424,018 ■Personal Services ■Supplies & Materials 130ther Services / Charges oPurchased Services ■Capital Outlay ®Other Uses -------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 165 Actual Current Budgeted Expenses Per Connection 2015 2016 2017 Connections 7,381 7,482 7,582 Monthly $ 23.75 $ 23.74 $ 26.64 Annual $ 284.96 $ 284.92 $ 319.71 -------------------------- ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 165 City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 $ 168,826 Revenues Charges for Services Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 $ 168,826 Revenues Charges for Services 442,567 Interest 1,004 Miscellaneous 1,768 Total Revenues: 445,339 Other Sources 1,000 Transfers In - Total Revenues and Other Sources: 445,339 Total Available: 614,165 Expenditures 457,902_ Personal Services 213,115 Supplies and Materials 17,194 Other Services and Charges 129,167 Capital Outlay 2,863 Total Expenditures: 362,339 Other Uses Transfers Out Total Expenditures and Other Uses: 362,339 Unrestricted Net Assets, December 31 $ 251,826 Change in Unrestricted Net Assets $ 83,000 49% 166 $ 251,826 $ 251,826 $ 292,098 424,735 456,902 471,163 1,000 1,000 1,000 425,735 472,163 457,902 425,735 472,163 457,902_ 677;561 709,728 764,261 217,095 217,095 221,375 28,200 28,200 33,200 172,335 172,335 176,996 417,630 431,571 417,630 417;630 $ 259,931 $ 8,105 3% 417, 630 $ 292,098 $ 40,272 16% 431,571 $ 332,690 $ 40,592 14% Fund: 5300 - Storm Sewer Cost Center: 48300 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 2017 includes the ditch cleaning at 141st Lane and Heather St ($55,000). Performance Measures Number of accounts Actual 2015 11,511 Current 2016 11,612 Budgeted 2017 11,712 Mileage of storm lines maintained 76 77 78 Maint. of catch basins & manholes 3,819 3,880 3,940 Maint. of sedimentation ponds 259 294 300 Maint. of culverts 368 385 400 Staffing Levels FTE Equivalents Service Expenses Personal Services Supplies & Materials Other Services / Charges Purchased Services Capital Outlay TOTAL Department: Storm Sewer Director/Manager: Utility Supervisor Actual Current Budgeted 2015 2016 2017 2.25 2.45 2.40 Actual Current Budgeted 2015 2016 2017 $ 213,116 $ 217,095 $ 221,375 17,193 28,200 33,200 42,612 50,985 50,396 86,554 121,350 126,600 $ 359,475 $ 417,630 $ 431,571 Service Expenses By Category Expenses Per Customer Customers Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 167 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2015 2016 2017 11,511 11,612 11,712 $ 2.60 $ 3.00 $ 3.07 $ 31.23 $ 35.97 $ 36.85 This page left blank intentionally. 168 CITY OF ANDOVER, MINNESOTA 2017 ANNUAL BUDGET INTERNAL SERVICE FUNDS DEFINITION: Internal Service Funds are used to account for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. 10 This page left blank intentionally. 170 City of Andover Internal Service Funds 2017 Budget Summary - All Internal Service Funds Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In $ 613,684 $ 744,804 $ 744,804 $ 690,401 1,112,578 1,111,844 7,493 1,500 97,856 - 1,217,927 1,113,344 1,119,764 3,800 1,123,564 1,158,507 3,000 1,161,507 Total Revenues and Other Sources: Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In $ 613,684 $ 744,804 $ 744,804 $ 690,401 1,112,578 1,111,844 7,493 1,500 97,856 - 1,217,927 1,113,344 1,119,764 3,800 1,123,564 1,158,507 3,000 1,161,507 Total Revenues and Other Sources: 1,217,927 1,113,344 1,123,564 1,161,507 Total Available: 1,831,611 1,858,148 1,868,368 1,851,908 Expenditures and Other Uses Personal Services 421,664 419,835 419,835 442,639 Supplies and Materials 297,248 388,010 388,010 404,160 Other Services and Charges 367,895 360,122 370,122 360,672 Total Expenditures: 1,086,807 1,167,967 1,177,967 1,207,471 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 1,086,807 1,167,967 1,177,967 1,207,471 Unrestricted Net Assets, December 31 $ 744,804 $ 690,181 $ 690,401 $ 644,437 Change in Unrestricted Net Assets $ 131,120 $ (54,623) $ (54,403) $ (45,964) 21% -7% -7% -7% 171 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 $ 322,692 $ 412,179 $ 412,179 $ 396,681 720,592 720,592 720,592 698,974 4,849 500 2,800 2,000 910 - - - 726,351 721,092 723,392 700,974 Total Revenues and Other Sources: Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In $ 322,692 $ 412,179 $ 412,179 $ 396,681 720,592 720,592 720,592 698,974 4,849 500 2,800 2,000 910 - - - 726,351 721,092 723,392 700,974 Total Revenues and Other Sources: 726,351 721,092 723,392 700,974 Total Available: 1,049,043 1,133,271 1,135,571 1,097,655 Expenditures and Other Uses Personal Services 253,142 256,658 256,658 278,926 Supplies and Materials 275,674 360,960 360,960 376,360 Other Services and Charges 108,048 121,272 121,272 121,822 Total Expenditures: 636,864 738,890 738,890 777,108 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 636,864 738,890 738,890 777,108 Unrestricted Net Assets, December 31 $ 412,179 $ 394,381 $ 396,681 $ 320,547 Change in Unrestricted Net Assets $ 89,487 $ (17,798) $ (15,498) $ (76,134) 28% -4% -4% -19% 172 Fund: 6100- Central Equipment Cost Center: 48800 Activitv 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. Service Expenditure Highlights Personal Services changed primarily due to a COLA and fte allocation change. Performance Measures Number of motorized equipment Number of non -motorized equipment Inspections Actual Current Budgeted 2015 2016 2017 274 288 295 540 545 547 92 104 110 Department: Vehicle Maintenance Director/Manager: Vehicle Maintenance Supervisor Actual Staffing Levels 2015 FTE Equivalents 2.81 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual 2015 31,704 $ 1.67 $ 20.09 Current Budgeted 2016 2017 2.90 3.25 Current Actual Service Expenditures 2015 Personal Services $ 253,140 Supplies & Materials 275,674 Other Services / Charges 73,383 Purchased Services 34,667 TOTAL $ 636,864 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual 2015 31,704 $ 1.67 $ 20.09 Current Budgeted 2016 2017 2.90 3.25 Current Budgeted 2016 2017 $ 256,658 $ 278,926 360,960 376,360 75,572 75,722 45,700 46,100 $ 738,890 $ 777,108 13Personal Services ■Supplies & Materials 13 Other Services / Charges o Purchased Services Current 2016 31,900 $ 1.93 $ 23.16 Budgeted 2017 32,100 $ 2.02 $ 24.21 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: $ 290,992 Actual Adopted Estimate Adopted Description 2015 2016 2016 2017 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 290,992 $ 332,625 $ 332,625 $ 293,720 Change in Unrestricted Net Assets $ 41,633 $ (36,825) $ (38,905) 391,986 391,252 399,172 459,533 2,644 1,000 1,000 1,000 96,946 - - - 491,576 392,252 400,172 460,533 460,533 491,576 392,252 400,172 782,568 724,877 732,797 754,253 168,522 163,177 163,177 163,713 21,574 27,050 27,050 27,800 259,847 238,850 248,850 238,850 449,943 429,077 439,077 430,363 430,363 449,943 429,077 439,077 Unrestricted Net Assets, December 31 $ 332,625 $ 295,800 $ 293,720 $ 323,890 Change in Unrestricted Net Assets $ 41,633 $ (36,825) $ (38,905) $ 30,170 14% -11% -12% 10% 174 Fund: 6200 - Risk Management Cost Center: 48900 Activity Description The Risk Management Fund was established to provide funding for compensated absences, safety, training, loss reduction and insurance premium deductibles. Social security and Medicare tax savings resulting from participation in the "cafeteria plan" are recorded in this fund on an annual basis. This fund also functions to mitigate significant rate increases or decreases. Departmental rates are managed by analyzing claims history. Process Used The City Administrator / Finance Director along with the Human Resources Manager promote various safety and wellness programs with the funding received. One of the most notable products is the wellness fitness room. Safety training is provided both in-house and by contracting for service. The city works through a broker and is provided insurance for general liability, automotive and workers' compensation through the League of MN Cities Insurance Trust. Service Expenditure Hi2hli2hts 2015 and 2016 purchased services included some insurance claim expenditures that were later reimbursed. Department: Risk Management Director/Manager: Finance Director Actual Current Budgeted Staffing Levels 2015 2016 2017 FTE Equivalents 0.10 0.10 0.10 13 Personal Services ■Supplies & Materials a Other Services / Charges a Purchased Services Actual Current Budgeted Service Expenditures 2015 2016 2017 Personal Services $ 168,522 $ 163,177 $ 163,713 Supplies & Materials 21,573 27,050 27,800 Other Services / Charges 232,381 231,600 231,600 Purchased Services 27,467 17,250 7,250 TOTAL $ 449,943 $ 439,077 $ 430,363 Service Expenditures By Category 13 Personal Services ■Supplies & Materials a Other Services / Charges a Purchased Services ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 175 Actual Current Budgeted Expenditures Per Capita 2015 2016 2017 Population - Estimates 31,704 31,900 32,100 Monthly $ 1.18 $ 1.15 $ 1.12 Annual $ 14.19 $ 13.76 $ 13.41 ADOPTED 2017 BUDGET CITY OF ANDOVER, MINNESOTA 175 This page left blank intentionally. 176 General Fund Water EF Sewer EF Total General Fund Special Revenue Funds (SRF) Community Center SRF 2012C G.O. Abatement Bonds DSF Right of Way Management / Utility SRF Road and Bridge CPF Total Special Revenue Funds Debt Service Funds (DSF) 2012A G.O. Equipment Certificates DSF Capital Equipment Reserve CPF 2012C G.O. Abatement Bonds DSF Community Center SRF Total Debt Service Funds Capital Projects Funds (CPF) Water Trunk CPF Water EF Sewer Trunk CPF Sewer EF Road and Bridge CPF Right of Way Management / Utility SRF Capital Equipment Reserve CPF 2012A G.O. Equipment Certificates DSF Total Capital Projects Funds Enterprise Funds (EF) Water EF Water Trunk CPF General Fund Sewer EF General Fund Sewer Trunk CPF Total Enterprise Funds Total All Funds CITY OF ANDOVER Budget Year 2017 Operating Transfers Transfer Transfer In Out $ 150,250 $ 46,680 196,930 General Fund Admin Allocation General Fund Admin Allocation 300,000 Debt Service Allocation 5,000 Roadway Degredation 305,000 Roadway Degredation 48,819 Close Capital Projects Fund 300,000 Debt Service Allocation 300,000 48,819 54,228 - 150,250 54,228 150,250 - 46,680 400,000 446,680 54,228 596,930 $ 1,004,977 $ 1,004,977 177 Debt Service Allocation General Fund Admin Allocation General Fund Admin Allocation Replacement Reserve 54,228 Debt Service Allocation 400,000 Replacement Reserve 5,000 Roadway Degredation 48,819 Close Capital Projects Fund 453,819 54,228 54,228 - 150,250 54,228 150,250 - 46,680 400,000 446,680 54,228 596,930 $ 1,004,977 $ 1,004,977 177 Debt Service Allocation General Fund Admin Allocation General Fund Admin Allocation Replacement Reserve CITY OF ANDOVER 2017 - 2021 CIP Development Calendar Date Activity Responsibility February 23, 2016 2017 - 2021 CIP Council Workshop to determine CIP guidelines. City Council / Staff March 1, 2016 Council adopts 2017 Budget Development Guidelines. City Council / Staff March 22, 2016 Council discussion of CIP priorities for 2017 - 2021. City Council / Staff April 4, 2016 Draft 2017 - 2021 CIP Calendar. Finance April 4 - May 2, 2016 Prepare base CIP Sheets. Finance April 7, 2016 Vehicle Purchasing Committee review of CIP equipment. Vehicle Purchasing Committee April 19, 2016 2017 - 2021 Capital Improvement Plan Discussion City Council / Staff May 5, 2016 CIP kick-off meeting with Department Heads to discuss CIP sheet content. Department Heads May 6, 2016 Projected cash flow statements prepared. Finance May 24, 2016 City Council progress update and Council CIP priority discussion. City Council / Staff June 1, 2016 All projects updated in CIP program. Department Heads June 9, 2016 Review projects — new and shifts. Department Heads June 28, 2016 City Council progress update and Council CIP priority discussion. City Council / Staff July - August, 2016 Commission and Committee review. Admin / Department Heads July 1, 2016 CIP project sheets completed. Department Heads July 5, 2016 CIP project sheets staff initial review. Admin / Department Heads July 6, 2016 Vehicle Purchasing Committee review of CIP equipment. Vehicle Purchasing Committee July 19, 2016 City Council review of City Utilities projects. City Council / Staff August 2, 2016 CIP project sheet staff final review. Admin / Department Heads August 8 - 19, 2016 Preparation of final draft of 2017 - 2021 CIP for Council Workshop. Finance August 23, 2016 City Council review of draft 2017 - 2021 CIP. City Council / Staff September 27, 2016 Council Workshop — progress report; public comment update. City Council / Staff October 18, 2016 City Council holds 2017 - 2021 CIP public hearing. City Council October 18, 2016 City Council adopts 2017 - 2021 CIP. City Council 178 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 2017 2018 2019 2020 2021 Building 19-42300-01 Replacement - Small Extended Cab Pick Up 08 S - S - S 35,000 S - S - Replace Unit 48, a 2004 Chevrolet Colorado pick up truck with 101,131 miles. Central Equipment 18-48800-01 Replacement - Service Truck 0371 S - S 40,000 S - S - S - Replace Unit 4371, a 2001 S10 Ext Cab 4x4 truck with 112,765 miles. The replacement truck would be a crew cab with a tailgate lift. Communitv Center 17-44000-05 Exterior Painting S 6,000 S - S - S - S - Painting all the cables, pipes and supports at the front entrance areas on both the West and East side of the building. 17-44000-02 ACC/YMCA Expansion S 75,000 S 200,000 S 6,725,000 S - S - Expansion of the Community Center which may include a youth center, additional meeting rooms, office space, library services space, practice ice rink, storage, hockey training and multi-purpose space. The YMCA may look into additional studio space as well as "flex space" and offices. 2017 and 2018 includes a study to determine what type of space is needed, a preliminary design, a high-level cost estimation and other necessary information needed to make a decision on whether to move forward with construction 18-44000-01 Replacement - Carpeting S - S 18,000 S - S 12,000 S - Replacement of carpet in offices and field house entrance. 18-44200-01 Replacement - Skate Sharpener/Rental Skates S - S 10,000 S - S - S - Replacement of the current skate sharpener and older rental skates. 18-44400-01 Replacement - Pickelball Inserts/Net System S - S 10,000 S - S - S - Drill holes in the fieldhouse to use pickle ball post inserts, similar to the volleyball post inserts. 18-44400-03 New Inflatables S - S 10,000 S - S - S - Inflatables (jumpers) are used in the field house and are a big part of our tot programs and birthday parties. 19-44000-02 Replacement - All Community Center Doors S - S - S 75,000 S - S - Replace all steel and wooden doors within the facility. 19-44300-01 Refacing Rink Boards S - S - S 25,000 S - S - 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 Repaint Ice Arena Ceiling S - S - S 25,000 S - S - Repaint the ice arena ceiling. 179 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 2017 2018 2019 2020 2021 19-44300-03 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. 19-44300-04 Replacement - Heat Exchangers - Munters Unit $ - $ - $ 15,000 $ - $ - Replacement of the heat exchangers in the Munters unit that heats the ice arena. 19-44300-06 Replacement - Zamboni Battery Pack $ - $ - $ 14,000 $ - $ - Replace the battery pack for the electric zamboni. 20-44000-01 Replacement - Scissor Lift $ - $ - $ - $ 15,000 $ - Replace a scissor lift with 118 hours. This piece of equipment 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). 20-44000-05 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. 20-44000-06 Replacement - Camera/Security System $ - $ - $ - $ 12,000 $ - Upgrade all indoor cameras from coax to digital. 20-44300-02 Replacement - Zamboni Room Water Heater $ - $ - $ - $ 25,000 $ - Replace the water heater that provides hot water to the zamboni room. 21-44000-01 Replacement - Floor Scrubber $ - $ - $ - $ - $ 15,000 Replace the floor scrubber that is used daily in the community center. 21-44200-01 Repaint Field House Ceiling $ - $ - $ - $ - $ 25,000 Repainting the field house ceiling. 21-44300-01 Replacement - Munters Desiccant Wheel $ - $ - $ - $ - $ 10,000 Replace the desiccant wheel in the munters unit that porvides the dehumidification to the ice arena. The wheel is part of the system that draws the moisture out. 21-44300-02 Replacement - Electric Edger $ - $ - $ - $ - $ 8,000 Replace the electric edger used for ice maintenance. 180 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 1.017 1.01 R 1.019 1.01.0 1.01.1 21-44300-03 Replacement - Evaporative Condenser $ - $ - $ - $ - $ 60,000 Replace the evaporative condenser, which is one of the main components of the refrigeration system that displaces the heat absorbed from the cooling process for the rink floor. 21-44400-02 Replacement - Field House Floor $ - $ - $ - $ - $ 150,000 Replace the floor in the field house. Emer2enev Management 17-42400-01 Emergency Operations Center Improvement $ 40,000 $ 18,000 $ 7,500 $ - $ - Construct a functional Emergency Operational Center (EOC) by improving workable space at fire station 41. The improvements include light station modifications, technology improvements, lockable cabinets/storage, hand-held and stationary radios. The floor will be resurfaced, a new door cut into a wall, new technology (screens, phones, WiFi, map boards) added and a change of locks so the EOC can be secured. 17-42400-02 Replacement - Emergency Sirens Replace 12 emergency sirens, three per year. $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ - En2ineerin2 17-41600-01 New Development Projects $ 160,000 $ 160,000 $ 165,000 $ 175,000 $ 180,000 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. 17-41600-02 Pedestrian Trail Maintenance $ 50,000 $ 55,000 $ 60,000 $ 65,000 $ 70,000 This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system. 17-41600-03 New Pedestrian Trail and Sidewalk Segments $ 565,000 $ 225,000 $ 265,000 $ 710,000 $ 400,000 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: 2017 - 8' bituminous trail and boardwalk along Crosstown Blvd - Bunker Lake Blvd to 140th Ave ($565,000). 2018 - 8' bituminous trail along Andover Blvd - Bluebird St to Vale St ($255,000). 2019 - 10' bituminous trail - Kensington Estates 7th Addition to Andover Station North ($265,000 - Grant). 2020 - 8' bituminous trail along Crosstown Blvd - Xeon St to railroad tracks ($165,000). 2020 - 8' bituminous trail along Crosstown Blvd - railroad tracks to 157th Ave ($300,000). 2020 - 8' bituminous trail along Crosstown Blvd - 157th Ave to 159th Ave ($245,000). 2021 - 8' bituminous trail and boardwalk along Verdin St - 161 st Ave to 163rd Lane ($400,000). 17-41600-04 Pedestrian Trail Reconstruction $ 60,000 $ 80,000 $ 100,000 $ 120,000 $ 140,000 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. 181 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 1.017 1.01 R 1.019 1.01.0 1.01.1 17-41600-05 Pedestrian Curb Ramp Replacements S 15,000 S 16,000 S 17,000 S 18,000 S 19,000 This project will result in the City trails and sidewalks being in compliance with the Americans with Disabilities Act by replacing existing pedestrian curb ramps to meet standards 17-41600-06 LED Crosswalk Warning System S 21,000 S - S - S - S - A solar powered Rectangular Rapid Flash Beacon LED Crosswalk Warning System will be constructed on Crosstown Blvd at 149th Ave to enhance the awareness of the pedestrian crossing that currently exists. 18-41600-01 Replacement - Data Collector / Total Station S - S 33,500 S Replace data collector and Total Station survey equipment. Facility Management S - S - 17-41900-01 Annual Parking Lot Maintenance S 90,000 S 130,000 S 30,000 S 30,000 S 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 was crack sealed and will be fog sealed in 2017. The parking lot at fire station 41 will have a complete reconstruction in 2018. 17-41900-02 Carpet / Tile Replacement S 10,000 S - S 10,000 S - S 10,000 The replacement of carpet and tile in appropriate areas of all City buildings where deemed necessary. An annual review of all areas will be done to determine the order of replacement. 17-41900-03 Replacement - Security Management System S 100,000 S - S - S - S - Add a security management system to city hall, public works and all the fire stations to provide asset security tracking and better control of building access. 17-41900-04 Public Works Relocation / Expansion S 50,000 S 450,000 S 8,500,000 S - S - Construction of a new Public Works faciltity as identified in the approved City Campus Expansion Master Plan. Phase I - Construct a new vehicle maintenance shop, including a was bay, cold storage building and fuel island/canopy. 2017 and 2018 includes a study to determine what type of space is needed, a preliminary design, a high-level cost estimation and other necessary information needed to make a decision on whether to move forward with construction. Plhase II - Construct a new public works building, including office space and heated storage garage. The start date has not been determined. 17-41900-05 HD Upgrade - City Hall Council Chambers S 60,000 S - S - S - S - Upgrade the monitors on the dais and the video switching equipment, and provide the necessary equipment to allow individuals to display content from their laptops. This would upgrade the video in the council chambers to HD along with a couple of necessary audio upgrades. 19-41900-01 Building A - Seal Floor S - S - S 25,000 S - S - Apply a sealant to the cement floor in Building A (large garage). 182 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 1.017 1.01 R 1.019 1.01.0 1.01.1 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. Finance 19-41400-01 Financial / Payroll System Upgrade / Replacement $ - $ - $ 150,000 $ - $ - Upgrade or replace the current financial/payroll software program. Fire 17-42200-01 Replacement - Turnout Gear $ 20,000 $ 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. 17-42200-02 Replacement - Extrication (Rescue) Equipment $ 80,000 $ - $ - $ - $ - Replace three (3) sets of hydraulic power equipment used to extricate people from vehicles and machinery. Each set goes on a fire engine at each station. Due to technological advancements, we will be chaning to battery operated power tools. This will reduce the overall cost of the equipment compared to the current style we have which requires a hydraulic pump, lines and tools. Maintenance costs will be reduced and this will also free up area in the fire engine compartments which is always an issue. 18-42200-01 Replacement - Grass 031 $ - $ 85,000 $ - $ - $ - Replace Unit 44893, a 1991 Ford 4x4 grass vehicle with 23,321 miles. This also has been used as medical response truck for station 43. 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 021 $ - $ 85,000 $ - $ - $ - Replace Unit 44892, a 1991 Ford 4x4 grass vehicle with 22,210 miles This has also been used as a medical response unit for Station 42. 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 011 $ Replace Unit 44889, a 1991 International tanker with all wheel drive and 10,048 miles. 183 $ - $ 400,000 $ CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 2017 2018 2019 2020 2021 19-42200-03 Replacement - Grass Utility Vehicle (UTV) 04813 S - S - S 45,000 S - S - Replace unit 44813, a Polaris 6x6 with 112 miles and is used primarily for wild fires. 19-42200-05 Replacement - 1999 GMC Sonoma Truck (U-10) 04810 S - S - S 45,000 S - S - Replace unit 44810, a 1999 GMC Sonoma extended cab truck with 50,250 miles. 20-42200-01 Replacement - SCBA Compressors S - S - S - S 130,000 S - Replace self contained breathing apparatus compressors at station 2 and 3. These compressors are used to fill breathing air into the bottles the fire fighters wear on their backs to enter dangerous conditions. 20-42200-02 Replacement - 800 MHz Radios S - S - S - S 35,000 S 35,000 The current 800 MHz handheld and mobile radios used by the Fire Department and Public Works are no longer be manufactured. 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. 20-42200-03 Replacement - Engine 2104884 S - S - S - S 450,000 S - Replace unit 44884, a 1997 Pierce Quantum Engine with 1,658 hours and 25,362 miles. Information Technolo2v 18-41420-01 Smartboard Addition S - S 12,000 S - S - S - Purchase a smart board for the council chambers. Park & Ree - Operations 17-45000-01 Replace/Repair Play Structures - Various Parks S 50,000 S 50,000 S 50,000 S 50,000 S 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: 2017 - Chesterton Commons 2018 - Shadowbrook East 2019 - Pine Hills South 2020 - Terrace Park 2021 - Strootman Park 17-45000-02 Replace/Repair Major Park Projects - Various Parks S 25,000 S 25,000 S 25,000 S 25,000 S 25,000 Future projects: fence rebuilds at various parks, pedestrian bridge deck replacement, and parking lot reconstruction. 184 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 17-45000-03 Replacement - One Ton Crew Cab Pickup 0502 S 50,000 S - S - S - S - Replace Unit 4502, a 2002 F350 crew cab pickup with 77,560 miles on it. 17-45000-04 New - Trail Machine S 150,000 S - S - S - S - 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. 18-45000-01 Replacement - One Ton Crew Truck w/ Plow 0599 S - S 80,000 S - S - S - Replace unit 4599, a 2000 Ford F450 one ton truck with a snow plow with 75,278 miles on it. 18-45000-03 New - Wood Chipper Tow -Behind S - S 20,000 S - S - S - Purchase a small towable wood chipper that can be hooked up to one of the smaller utility tractors. It will be used in the open space areas and along the trail system where the big machine can not access. 18-45000-03 Replacement - Bobcat Track Loader 0610 S - S 55,000 S - S - S - Replace unit 4610, a 2014 Bobcat T590 track loader with 642 hours. 18-45000-04 Replacement - Small Extended Cab Truck 076 S - S 55,000 S - S - S - Replace unit 476, a Chevrolet S-10 extended cab pickup with 51,480 miles. 18-45000-05 New - "V" Snow Plow for 009-589 S - S 15,000 S - S - S - A new heavier non -directional "V" plow to put on the front of a trail machine. 19-45000-01 Replacement - Water Tanker 0161 S - S - S 150,000 S - S - Replace unit 4161, a 2002 water tanker truck with 56,125 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 S - S - S 16,000 S - S - Replace Unit 4T-555, a 1993 trailer that has gone under a number of refurberations. It would be replaced with a new galvanized trailer. 20-45000-01 Replacement - Cushman Field Dresser 0547 S - S - S - S 27,000 S - Replace unit 4547, a 1994 Cushman field dresser with 5,229 hours. Park & Ree - Proiects 17-45001-01 Annual Miscellaneous Park Projects S 15,000 S 15,000 S 15,000 S 15,000 S 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. 17-45001-02 Fox Meadows Park - Renovation S 457,300 S - S - S - S - 185 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN Reconstruct the existing park to include one full sized soccer/lacrosse/football field along with constructing one smaller practice field adjacent to the full size field. A well and irrigation system will be necessary to provide a playable surface. The parking lot is also proposed to be expanded to accomodate parents and/or spectators attending the games. 17-45001-03 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. 17-45001-04 Irrigation Projects - Small Parks $ 20,000 $ 20,000 $ 20,000 $ - $ - Irrigate a small park which has playground equipment or other amenities. 17-45001-05 Nordeen's Park Basketball Court $ 7,500 $ - $ - $ - $ - Install a new basketball court at the request of a neighborhood petition that was submitted in 2016. 19-45001-01 Wild Iris Irrigation and Water Service $ - $ - $ - $ 42,500 $ - Irrigate the existing ballfield and surrounding amenities. Planning & Zoning 17-41500-01 Replacement - Planning Vehicle 07 $ 30,000 $ - $ - $ - $ - Replace Unit 47, a 1999 S10 Blazer with over 102,929 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 099 $ 460,000 $ - $ - $ - $ - Replace Unit 499, a 1999 Vactor jet/vac truck with 26,015 miles. The new vehicle will be able to carry up to 2000 gallons and 600 feet of jetting hose. 17-48200-03 Lift Station 04 Upgrade $ 50,000 $ - $ - $ - $ - Lift station 44 need to have the pumps increased to handle the additional flows from the surrounding area and the new developments to the north an east. 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 069 $ - $ 100,000 $ - $ - $ - 186 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 1.017 1.01 R 1.019 1.01.0 1.01.1 Replace Unit 469, a 2006 Ford F450 utility truck with a box and crane that has 117,673 miles on it. It is proposed to be replaced with a 2 1/2 ton truck to allow for a bigger crane, power inverter and air compressor. Storm Sewer 17-48300-01 Storm Sewer Improvements S 55,000 S 60,000 S 60,000 S 62,000 S 65,000 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. 2017 includes the ditch cleaning at 141st Lane and Heather St. 18-48300-01 Replacement - Tymco Street Sweeper 0172 S - S 220,000 S - S - S - Replace Unit 4172, a 2003 Tymco sweeper with approximately 29,400 miles. 19-48300-01 Replacement - Elgin Street Sweeper 0169 S - S - S 200,000 S - S - Replace Unit #169, a 2000 Elgin sweeper with approximately 4,534 hours. Street Signs 17-43300-01 Sign Design Software & Plotter S 10,000 S - S - S - S - Replace old sign design software and plotter with updated software and plotter to design and make warning and regulatory signs. Streets / Hi2hways 17-43100-01 Annual Street Seal Coat Project S 725,000 S 250,000 S 260,000 S 275,000 S 285,000 This project provides for a seal coat of the streets. Each year the public works and engineering departments will determine what areas of the City will be seal coated the following year. Factors for consideration will be age and condition to the pavement, time since the last seal coat, and plans for future reconstruction of the roadways. 17-43100-02 Annual Street Crack Seal Project S 160,000 S 170,000 S 245,000 S 290,000 S 375,000 This project provides for a crack sealing of the streets. Each year one of the 9 full zones in the City is seal coated. The following areas are tentatively planned for crack sealing as shown. Areas nearing reconstruction, those seal coated recently, or with severe cracking are excluded from this project as determined by the engineering and public works departments. 2017 - Zone 4 / NW corner of Zone 5 2018 - Zone 5 2019 - Zone 6 2020 - Zone 7 2021- Zone 8 17-43100-03 Annual Pavement Markings S 42,000 S 44,000 S 46,000 S 48,000 S 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 187 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 1.017 1.01 R 1.019 1.01.0 1.01.1 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. 17-43100-04 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. 17-43100-05 Municipal State Aid Routes / New & Reconstruct $ 1,300,000 $ 820,000 $ 1,690,000 $ 350,000 $ 290,000 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards: 2017 - University Ave Overlay (157th to 161st) $130,000 2017 - 168th Lane (Crocust to Verdin) $1,170,000 2018 - 143rd Ave Reconstruction (Xenia to Round Lake Blvd) $370,000 2018 - Crosstown Blvd Overlay (Hanson Blvd to 161 st Ave) $450,000 2019 - University Ave Reconstruction (Andover Blvd to 157th) $690,000 2019 - Hanson Blvd (Jay to Crosstown Blvd) $1,000,000 2020 - Prairie Road Overlay (Andover Blvd to Bunker Lake Blvd) $350,000 2021 - Jay St Overlay (Bunker Lake Blvd to Hanson Blvd) $290,000 17-43100-06 Annual Street Reconstruction $ 1,236,000 $ 821,000 $ 1,143,000 $ 1,092,000 $ 1,268,000 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: 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 2021 - Andover West, Indian Meadows 2nd Addition, Lunds Round Lake Estates 17-43100-07 Intersection Upgrades $ - $ 285,000 $ - $ - $ 2,075,000 The following are projects that are tentatively identified for improvements and the exact timing is subject to change: 2018 - Construction of a traffic signal at South Coon Creek Dr and Round Lake Blvd ($285,000) if warrants are met. 2021 - Crosstown Blvd / Crosstown Drive Intersection. Improvements could include separating the southbound right turning movement onto Crosstown Drive to improve safety ($275,000). 188 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN 2021 - 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. 17-43100-08 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. 17-43100-11 Replacement - One Ton Truck w/ Plow 0134 $ 80,000 $ - $ - $ - $ - Replace Unit 4134, a 2004 Ford F450 dump truck with a 9' snow plow with 83,128 miles. 17-43100-12 New - One Ton Truck w/ Regular Box w/ Lift & Plow $ 55,000 $ - $ - $ - $ - Add a one ton 4x4 truck with a regular box, tail gait lift and snow plow. 17-43100-13 New - Bobcat Paver $ 20,000 $ - $ - $ - $ - Add a bobcat -style paver for patching roads, shoulders and trails. 18-43100-01 Street Overlays $ - $ 400,000 $ - $ 400,000 $ 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 criteria one year prior to the overlay being constructed. 19-43100-01 New - Dump Truck w/ Snow Removal $ - $ - $ 220,000 $ - $ - Add a dump truck with snow removal equipment and moving the oldest truck into a back-up position in case of breakdowns during a snow emergency. 20-43100-01 Replacement - Dump Truck w/ Snow Removal 0198 $ - $ - $ - $ 220,000 $ - Replace unit 4198, a 2000 dump truck with snow removal equipment and 56,278 miles. 20-43100-02 Replacement - Bobcat S185 0120 $ - $ - $ - $ 50,000 $ - Replace Unit 4120, a 2004 Bobcat S185 high-flow hydraulics loader with 1,445 hours. 20-43100-03 Replacement - One Ton Truck w/ Plow 0133 $ - $ - $ - $ 80,000 $ - Replace Unit 4133, a 2004 Ford F450 dump truck with a 9' snowplow and aluminum box cover with 48,883 miles. 20-43100-04 Replacement - Backhoe Loader 080 $ - $ - $ - $ 110,000 $ - Replace unit 480, a 2002 Caterpillar backhoe loader with 3,200 hours. 21-43100-01 Replacement - Dump Truck w/ Snow Removal 0200 $ - $ - $ - $ - $ 220,000 Replace Unit 4200, a 2000 dump truck with snow removal equipment with 64,700 miles. 189 CITY OF ANDOVER 2017 - 2021 CAPITAL IMPROVEMENT PLAN lni '7 Ini u Ini o Inin Imi Water 17-48100-01 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. 17-48100-02 Replacement - Dodge Dakota 095 $ 30,000 $ - $ - $ - $ - Replace Unit 495, a 2000 Dodge Dakota pick up with 125,000 miles. 18-48100-02 Replacement - 3/4 Ton Utility Truck 095 $ - $ 60,000 $ - $ - $ - Replace Unit 466, a 2006 Ford F250 pickup with utility box that has 114,000 miles. 18-48100-03 Replacement - Side by Side UTV 070 $ - $ 48,000 $ - $ - $ - Replace Unit 470, a 2004 IR 5600 Toolcat with 1,214 miles. 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 also be equipped with hydraulics to use different types of attachments such as a plow, snowblower, auger and any other attachment suited for this machine. 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 19-48100-01 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. $ 6,794,800 $ 7,222,500 $ 24,127,500 $ 6,129,500 $ 6,013,000 190 CITY OF ANDOVER Summary of Outstanding Bond Issues 2016-2017 Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 3/13/2007 2/1/2023 4.00-4.25% 6,570,000 5,055,000 (550,000) 4,505,000 Outstanding - 2009A G.O. Water Revenue Bonds Outstanding 665,000 Outstanding 600,000 Date of Rate of 2016B G.O. Water Revenue Refunding Bonds at 2016 3,925,000 at 2017 at Description Issue Maturity Interest Issued 12/31/2015 Retired Issued 12/31/2016 Retired Issued 12/31/2017 Governmental Activities $ (4,570,000) $ $ 4,460,000 TOTALS $ 25,050,000 $ (2,385,000) $ 4,445,000 $ 27,110,000 $ (6,370,000) $ $ 20,740,000 General Obligation Abatement Bonds 2012C G.O. Abatement Bonds 12/27/2012 2/1/2031 1.00-3.00% 17,315,000 15,840,000 (845,000) 14,995,000 (855,000) 14,140,000 Certificates of Indebtedness/Capital Notes 2012A G.O. Equipment Certificates 3/22/2012 2/1/2017 2.00% 585,000 585,000 (50,000) 535,000 (535,000) - 2014AG.O.Equipment Certificates 5/29/2014 2/1/2020 1.50-2.00% 1,555,000 1,330,000 (260,000) - 1,070,000 (260,000) 810,000 2016A G.O. Equipment Certificates 2/19/2016 2/1/2021 1.90% 520,000 520,000 520,000 520,000 Subtotal -Certificates of Indebtedness 1,915,000 (310,000) 520,000 2,125,000 (795,000) 1,330,000 Capital Improvement Bonds 2012B G.O. Cap Improvement Ref Bonds 3/22/2012 2/1/2016 2.00% 1,570,000 470,000 (470,000) - - - Subtotal - Capital Improvement Bonds 470,000 (470,000) - Referendum Bonds: 2010A G.O. Open Space Referendum Bonds 2/18/2010 2/1/2022 2.00-3.125% 1,660,000 1,105,000 (145,000) - 960,000 (150,000) 810,000 TOTALS $19,330,000 $ (1,770,000) $ 520,000 $ 18,080,000 $ (1,800,000) $ $ 16,280,000 Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 3/13/2007 2/1/2023 4.00-4.25% 6,570,000 5,055,000 (550,000) 4,505,000 (4,505,000) - 2009A G.O. Water Revenue Bonds 3/26/2009 2/1/2024 2.00-4.25% 1,025,000 665,000 (65,000) - 600,000 (65,000) 535,000 2016B G.O. Water Revenue Refunding Bonds 12/7/2016 2/1/2023 2.00% 3,925,000 - 3,925,000 3,925,000 3,925,000 Subtotal - General Obligation Bonds TOTALS $ 5,720,000 $ (615,000) $ 3,925,000 $ 9,030,000 $ (4,570,000) $ $ 4,460,000 TOTALS $ 25,050,000 $ (2,385,000) $ 4,445,000 $ 27,110,000 $ (6,370,000) $ $ 20,740,000 flu CITY OF ANDOVER Debt Service Summary 192 Total Less 2017 2018 2019 2020 2021 2022-2026 2027-2031 Payments Interest Total Governmental Activities General Obligation Abatement Bonds 2012C G.O. Abatement Bonds 1,213,731.26 1,211,481.26 1,208,931.26 1,215,981.26 1,212,631.26 6,053,843.80 6,054,471.89 18,171,071.99 (3,176,071.99) 14,995,000.00 Certificates of Indebtedness 2012A G.O. Equipment Certificates 540,350.00 - - - 540,350.00 (5,350.00) 535,000.00 2014A GO. Equipment Certificates 278,800.00 278,550.00 278,200.00 277,750.00 - 1,113,300.00 (43,300.00) 1,070,000.00 2016A G.O. Equipment Certificates 9,880.00 134,683.00 135,260.50 134,790.50 135,273.00 549,887.00 (29,887.00) 520,000.00 829,030.00 413,233.00 413,460.50 412,540.50 135,273.00 2,203,537.00 (78,537.00) 2,125,000.00 Referendum Bonds 2010A G.O. Open Space Referendum Bonds 175,657.50 176,841.25 177,507.50 172,827.50 172,870.00 172,656.25 1,048,360.00 (88,360.00) 960,000.00 2,218,418.76 1,801,555.51 1,799,899.26 1,801,349.26 1,520,774.26 6,226,500.05 6,054,471.89 21,422,968.99 (3,342,968.99) 18,080,000.00 Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 4,596,773.13 - - - - - 4,596,773.13 (91,773.13) 4,505,000.00 2009A G.O. Water Revenue Bonds 86,605.00 89,492.50 87,130.00 89,498.75 86,592.50 260,551.25 699,870.00 (99,870.00) 600,000.00 2016B G.O. Water Revenue Refunding Bonds 51,025.00 687,350.00 694,850.00 697,000.00 693,900.00 1,392,450.00 4,216,575.00 (291,575.00) 3,925,000.00 4,734,403.13 776,842.50 781,980.00 786,498.75 780,492.50 1,653,001.25 9,513,218.13 (483,218.13) 9,030,000.00 6,952,821.89 2,578,398.01 2,581,879.26 2,587,848.01 2,301,266.76 7,879,501.30 6,054,471.89 30,936,187.12 (3,826,187.12) 27,110,000.00 192 CITY OF ANDOVER Computation of Legal Debt Margin December 31, 2016 (Unaudited) Estimated Taxable Market Value (Note A) $ 2,539,686,867 Debt Limit: 3% of Market Value 76,190,606 Total Bonded Debt $ 27,110,000 Less: Non -Tax Levy Supported Debt: (Note B) G.O. Revenue Bonds 9,030,000 Total Debt Applicable 18,080,000 Less: Balance Available in Related Debt Service Funds 1,317,097 Net Debt Applicable 16,762,903 Legal Debt Margin $ 59,427,703 Note A: Source: Anoka County Property Tax Division Note B: The computation on legal debt margin only includes debt supported by a tax levy. 193 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 Total Market Value Collections In Total Collections to Date Collections Tax Tax Homestead Total Percentage Subsequent Delinquent 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% $ 108,615 $ 8,087,594 94.58% 2007 9,316,427 8,738,606 410,519 9,149,125 98.20% 152,191 9,301,316 99.84% 2008 10,153,718 9,554,131 198,214 * 9,752,345 96.05% 182,692 9,935,037 97.85% 2009 10,593,520 9,992,240 54,629 * 10,046,869 94.84% 147,713 10,194,582 96.23% 2010 10,856,299 10,125,752 3,905 * 10,129,657 93.31% 171,005 10,300,662 94.88% 2011 10,856,299 10,119,681 853 * 10,120,534 93.22% 131,518 10,252,052 94.43% 2012 10,631,299 10,460,838 2,354 10,463,192 98.42% 105,764 10,568,956 99.41% 2013 10,631,299 10,535,521 1,246 10,536,767 99.11% 74,351 10,611,118 99.81% 2014 10,843,925 10,776,635 - 10,776,635 99.38% 54,570 10,831,205 99.88% 2015 11,143,925 11,054,157 2014 11,054,157 99.19% 118.69% Not Available 391,439 * Included in the total tax levy is approximately 5400,000 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. 269,754 80.75% CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Note: (1) Only includes assessments certified to Anoka County. 194 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 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% 2015 334,054 514,868 154.13% 4,003 518,871 155.33% 269,754 80.75% Note: (1) Only includes assessments certified to Anoka County. 194 CITY OF ANDOVER, MINNESOTA PRINCIPAL TAXPAYERS Current Year and Nine Years Ago (Unaudited) 116 LLC United Power Association Grey Oaks Inc. Redemacher Family Ltd Partnership Total ® 1321,509 Net Tax Capacity $ 21,978,322 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) 2015 Net Net Tax Taxpayers Capacity Minnegasco, Inc. $ 211,244 Great River Energy 194,038 Connexus Energy 193,140 Target Corporation 160,048 Presbyterian Homes of Andover 140,847 Andover Limited Partnership 117,528 Andover Station LLC 97,182 DST Properties LLC 81,678 Fairbanks Properties, LLC 65,926 Columbia Park Properties 59,878 116 LLC United Power Association Grey Oaks Inc. Redemacher Family Ltd Partnership Total ® 1321,509 Net Tax Capacity $ 21,978,322 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) 2015 2006 Percentage of Total City Tax Capacity 5 0.52% 1 0.83% 2 4 0.58% 3 0.60% 7 0.00% 6 0.48% 8 0.32% 9 0.28% 10 0.24% 3.85% Percentage of Net Total City Tax Rank Tax Capacity Capacity 1 0.96% $ 138,040 2 0.88% Industrial (1) 3 0.88% 222,128 4 0.73% 212,312 5 0.64% 155,680 6 0.53% 158,554 7 0.44% 99,624 8 0.37% 2,875,150,800 9 0.30% 91 10 0.27% 233,801,700 2,813,037,200 - 128,338 16,878,603 49 84,760 2009 248,129,500 73,692 3,055,274,000 - 64,440 47 6.01% ® 1337,568 229,977,800 2,526,288,900 $ 26,643,635 2006 Percentage of Total City Tax Capacity 5 0.52% 1 0.83% 2 4 0.58% 3 0.60% 7 0.00% 6 0.48% 8 0.32% 9 0.28% 10 0.24% 3.85% Note: (1) also includes agricultural, public utility, railroad operating property, and personal property 195 Estimated Market Values New Construction Commercial / Commercial / Industrial Residential Year Industrial (1) Residential Total Permits Value Permits Value 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 2015 173,717,700 2,435,950,500 2,609,668,200 16 2,513,609 74 19,631,775 Note: (1) also includes agricultural, public utility, railroad operating property, and personal property 195 CITY OF ANDOVER, MINNESOTA DEMOGRAPHICS (Unaudited) POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) City of Populaton by Age (20 10 U.S. Census): Percent Percent U.S. Census 1,737 of Change 5 - 9 2000 2010 2020 Est (1) 2000-2010 Population 26,588 30,598 33,400 15.08% Households 8,205 10,091 11,000 22.99% Household Size (Population/Household' 3.24 3.03 3.04 -6.43% POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) City of 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 Total male population 2010 median age 15,074 15,524 31.9 yrs (1) Source: Metropolitan Council 196 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 196 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 197 1974 Plan A 204 43 77 117 96 68 595 37 9,572 12,924 Number of Employees 760 300 250 225 210 186 170 103 100 85 GLOSSARY OF TERMS ACCOUNTING SYSTEM: The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned (whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). ACTIVITY: A cost center for recording charges for services delivered or functions performed. Each activity has an assigned manager who is responsible for planning and conducting the various approved objectives or workloads. AMORTIZATION: (1) The portion of the cost of a limited -life or tangible asset charged as an expense during a particular period. (2) The reduction of a debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION: An authorization made by the legislative body of a government that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ASSESSED VALUATION: A valuation set upon real estate or other property by a government as a basis for levying taxes. ASSESSMENT: (1) The process of making the official valuation of property for taxation. (2) The valuation placed upon property as a result of this process. ASSETS: Property owned by a government that has a monetary value. BALANCED BUDGET: When revenues and other financing sources equal expenditures/expenses and other financing uses. BOND: A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. 198 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. W 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 200 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. 201 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. 202 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. 203 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. 204