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HomeMy WebLinkAboutBudget - 20182018 Annual Operating Budget 2 two Loa.& 1685 Crosstown Blvd NW, Andover, MN 55304 Phone: (763) 755-5100 * Fax: (763) 755-8923 www.andovermn.gov GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Andover Minnesota For the Fiscal Year Beginning January 1, 2017 Executive Director CITY OF ANDOVER 2018 Annual Operating Budget Table of Contents Introduction General Fund (Continued) Public Official Listing.................................................................................... 1 Facilities Management.................................................................................... 72 OrganizationalChart ....................................................................................... 2 Police Protection ............................................................................................. 73 BudgetMessage.............................................................................................. 3 Fire Protection................................................................................................ 74 City Council Resolution Adopting Budget ..................................................... 27 Protective Inspection...................................................................................... 75 Valuesand Goals............................................................................................ 30 Emergency Management................................................................................ 76 BudgetDevelopment Process......................................................................... 31 Animal Control............................................................................................... 77 2018 Budget Development Calendar.............................................................. 32 Streets & Highways........................................................................................ 78 Accounting, Auditing and Financial Reporting Policy ................................... 34 Snow & Ice..................................................................................................... 79 OperatingBudget Policy................................................................................. 35 Street Signs..................................................................................................... 80 RevenuePolicy............................................................................................... 37 Traffic Signals................................................................................................ 81 CapitalImprovement Policy........................................................................... 37 Street Lighting................................................................................................ 82 DebtAdministration....................................................................................... 38 Street Lights Billed ......................................................................................... 83 InvestmentPolicy........................................................................................... 39 Parks & Recreation......................................................................................... 84 Revenue Projections....................................................................................... 42 Natural Resource Preservation ........................................................................ 85 2018 Budget Summary by Fund Type............................................................ 47 Recycling........................................................................................................ 86 2018 Budget Summary — Revenues and Expenditures Fund Summary.......... 48 Unallocated..................................................................................................... 87 2018 Budget Summary — Revenues and Expenditures All Funds .................. 49 Special Revenue Funds 2018 Budget Summary — Revenues and Expenditures by Fund Type ............ 50 Definition........................................................................................................ 89 Revenue Comparison — General Fund............................................................ 51 Statement of Revenues, Expenditures and Changes in Fund Balance — All Expenditure Comparison — General Fund ....................................................... 52 Special Revenue Funds............................................................................ 91 Expenditure Budget Summary — By Department — General Fund .................. 53 Economic Development Authority Fund 2018 FTE Summary........................................................................................ 54 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 92 2018 Capital Improvement Budget................................................................. 55 Fund Overview........................................................................................ 93 General Fund Community Development Block Grant Fund Definition........................................................................................................ 57 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 94 Statement of Revenues, Expenditures and Changes in Fund Balance ............ 59 Fund Overview........................................................................................ 95 Mayor & Council............................................................................................ 60 Community Center Fund Administration................................................................................................ 61 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 96 Newsletter....................................................................................................... 62 Fund Overview ........................................................................................ 97 Human Resources........................................................................................... 63 Drainage and Mapping Fund Attorney.......................................................................................................... 64 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 98 CityClerk....................................................................................................... 65 Fund Overview........................................................................................ 99 Elections......................................................................................................... 66 Lower Rum River Watershed Fund Financial Administration................................................................................ 67 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 100 Assessing........................................................................................................ 68 Fund Overview........................................................................................ 101 Information Systems....................................................................................... 69 Forestry Fund Planning and Zoning....................................................................................... 70 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 102 Engineering..................................................................................................... 71 Fund Overview ........................................................................................ 103 CITY OF ANDOVER 2018 Annual Operating Budget Special Revenue Funds (Continued) Right of Way Management / Utility Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Charitable Gambling Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Construction Seal Coating Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Debt Service Funds Definition....................................................................................................... Statement of Revenues, Expenditures and Changes in Fund Balance — All DebtService Funds................................................................................. Certificates / Capital Notes — 2012A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Certificates / Capital Notes — 2014A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Certificates / Capital Notes — 2016A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... General Obligation Bonds — 2012B G.O. Capital Improv Refunding Bonds Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... General Obligation Bonds — 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... General Obligation Bonds — 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Capital Projects Funds Definition....................................................................................................... Statement of Revenues, Expenditures and Changes in Fund Balance — All CapitalProjects Funds............................................................................ Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance .... FundOverview....................................................................................... Table of Contents Capital Projects Funds (Continued) Sewer Trunk Fund 104 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 132 105 Fund Overview........................................................................................ 133 Storm Sewer Fund 106 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 134 107 Fund Overview........................................................................................ 135 Road and Bridge Fund 108 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 136 109 Fund Overview........................................................................................ 137 Park Dedication Projects 111 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 138 FundOverview........................................................................................ 139 113 Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 140 114 Fund Overview........................................................................................ 141 115 Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance ..... 142 116 Fund Overview........................................................................................ 143 117 Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance ..... 144 118 Fund Overview........................................................................................ 145 119 2014 G.O Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance ..... 146 120 Fund Overview........................................................................................ 147 121 2016 G.O Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance ..... 148 122 Fund Overview........................................................................................ 149 123 Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance ..... 150 124 Fund Overview........................................................................................ 151 125 Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance ..... 152 127 Fund Overview........................................................................................ 153 2010A G.O. Open Space Referendum Bonds 129 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 154 FundOverview........................................................................................ 155 130 131 CITY OF ANDOVER 2018 Annual Operating Budget Table of Contents Enterprise Funds Definition........................................................................................................ 157 Statement of Revenues, Expenditures and Changes in Retained Earnings — All Enterprise Funds................................................................................ 159 Water Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 160 FundOverview........................................................................................ 161 Sanitary Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 162 FundOverview........................................................................................ 163 Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 164 FundOverview........................................................................................ 165 Internal Service Fund Definition........................................................................................................ 167 Statement of Revenues, Expenditures and Changes in Fund Balance — All Internal Service Funds............................................................................. 169 Central Equipment Maintenance Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 170 FundOverview........................................................................................ 171 Risk Management Statement of Revenues, Expenditures and Changes in Fund Balance ..... 172 FundOverview........................................................................................ 173 Appendix Budget Year 2018 — Operating Transfers....................................................... 175 2018 — 2021 Capital Improvement Plan Development Calendar .................... 176 Capital Improvements Plan 2018-2021.......................................................... 177 Summary of Outstanding Bond Issues............................................................ 189 Future Debt Service Requirements................................................................. 190 Computation of Legal Debt Margin................................................................ 191 Property Tax Levies and Collections.............................................................. 192 Special Assessment Levies and Collections................................................... 192 Principal Taxpayers........................................................................................ 193 Building Permits, Property Values and Households ....................................... 193 Demographics................................................................................................. 194 Miscellaneous Statistical Data........................................................................ 195 Glossaryof Terms........................................................................................... 196 This page left blank intentionally. CITY OF ANDOVER Adopted 2018 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 Administration Building Inspections City Clerk Administrative Emergency Clerk's Office Services Management Human Resources Protective Elections Inspections Newsletter I I I Animal Control Economic Development Authority Community Center Charitable Gambling Recycling Information Systems CITY OF ANDOVER 2018 Organizational Chart Trail & Transportation Construction Seal Coating Water Trunk Storm Sewer Sewer Trunk Road & Bridge Park Dedication Projects Reserve Debt Service Funds Tax Increment Projects Building Fund Permanent Improvement Revolving G.O. Capital Notes Risk Management 2 Parks & Recreation Water Sewer Central Equipment Natural Resources Preservation Residents City Council City Attorney City Admin istrator AdvisoryBoards Engineering Finance Fire Protection Planning Public Works Police Protection Engineering Financial Fire Protection Planning & Zoning Streets/Highways Services Administration Services Right -of -Way Assessing CDBG Snow & Ice Management Removal Drainage & Facilities Street Lighting Mapping Management Lower Rum River Unallocated Signage Watershed Mgmt Organization Forestry Cap ital 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 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 2018 City Budget DATE: December 5, 2017 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, 2017. In response to these requirements, a proposed budget was presented to Council on September 19, 2017 in advance of this deadline. Council held budget -planning sessions on March 28, April 25, May 23, June 27, July 25, and August 22 to discuss budget priorities and adopted the preliminary 2018 City Levy on September 19, 2017. Additional budget discussion was held with the Council on September 26, October 24, and November 28 before the public hearing that was held on December 5, 2017. The Council's final action on adopting the 2018 City Budget and 2018 Levy occurred on December 5, 2017. The official adoption of the 2018 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 28, 2017. 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 2018. Mayor, Councilmembers, Residents 2018 Adopted City Budget As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of their specific service needs, prioritized spending requests to achieve the most effective operational delivery of services, and then balanced the allocation of the City's human and financial resources against those needs. It has been our goal to accomplish this in a fair, impartial and balanced manner that meets with the approval of Council and the residents we serve. GENERAL INFORMATION The city we know today as Andover was first organized in 1857 under the name "Round Lake Township." However, in 1860 the name was changed to "Grow Township" in honor of Senator Galusha A. Grow of Pennsylvania. Senator Grow spoke at a political campaign in Anoka that year, and the town name was changed to reflect Senator Grow because of his strong advocacy of the Union cause. At that time, the population was 330 and included the geographical area we know today as Ham Lake. In fact, the area of Ham Lake was considered a part of Grow Township until 1871. In 1972, the Grow Township Board of Supervisors recognized that the town was growing at a very rapid rate. They felt a village form of government would provide better services to the community. Board supervisors then voted in favor of proceeding with the incorporation process. The board voted to submit a new name for the village. "Andover Village" was chosen because the name Andover had historical interest. The historical interest, we believe, came from the Andover train station. You may have heard the popular "train myth" about how Andover received its name. The myth states that a train tipped over in a swamp, and an eyewitness, relaying the incident, said it "went over and over," thereby naming the city "Andover." However, research reveals that the name Andover first appeared in an article dated March 14, 1899 in the Anoka County Union Newspaper - before train tracks were ever built in the city. The article stated that the Eastern Minnesota line of the Great Northern Railway was in the process of constructing railroad tracks from the Coon Creek Cut-off to the North. The railway announced that new railroad stations with mathematical precision were to be located five miles apart from each other. The new stations (from Coon Creek to the North, along the new railroad line) were to be named Andover, Cedar, Bethel, Isanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4, 1899, the first train passed through the Andover station. Where the railway came up with the name Andover still remains unknown. 4 Mayor, Councilmembers, Residents 2018 Adopted City Budget 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. BUDGET GUIDELINES The following are City Council's 2018 Budget Development guidelines established by the City Council on April 18, 2017, 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 16.22% increase in total taxable market value. The 2018 Property Tax Levy that was approved estimates reducing the current City tax rate by 7.5%. 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2018 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 80016 of the total General Fund revenues, cash flow designations approaching 50% would be appropriate and are recommended by the City's auditor. The 2018 budget exceeds this guideline, also emergency fund balances (approximately 3% of planned General Fund expenditures) are in place to stabilize a situation and not be a complete solution. 3) A commitment to limit the 2018 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 2018 debt levy was 12.88010 of the gross tax levy. The 25016 guideline for 2018 was met easily as $525, 000 of existing debt levy was reallocated as a capital levy for 2018 to fund planned equipment purchases. Mayor, Councilmembers, Residents 2018 Adopted City Budget 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 2018 2022 Capital Improvement Plan (CIP) that was adopted at the October 17, 2017 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 ofpresent 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 paid special attention to fiscal values, commercial & residential development/redevelopment, collaboration opportunities, service delivery and the livability/image of the community. Mayor, Councilmembers, Residents 2018 Adopted City Budget 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 the City to identify alternate locations for sewer supported growth. In 2017, the City issued 94 new single-family building permits with a total valuation of $27,847,716 compared to 111 new single-family building permits with a total valuation of $28,893,036 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 2017 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 2017. 2) In 2017, the City again saw new residential development including the development of 28 lots known as Catchers Creek Second Addition and 58 lots known as Country Oaks North Second Addition. 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 reached substantial completion in 2017. This project was financed primarily by a federal grant. A trail underpass from the City trails system to Bunker Hills Regional Park is was also constructed 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 and then added patio dining in early 2017. Mayor, Councilmembers, Residents 2018 Adopted City Budget 5) 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 late 2016 and became fully operational in early 2017. 6) 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 with hopes of continuing to add to the critical land mass necessary to start marketing for a redevelopment project. In late 2017 the EDA was successful in acquiring three more 4-plex properties. It is anticipated that the EDA will now acquire two 4-plexes a year for the next few years. 7) The City of Andover EDA was successful in acquiring a very dated convenience store/gas station located within a targeted redevelopment area in December of 2012. 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 started construction in 2016, and became the home of ReMax of Andover in early 2017. 8) 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 anew strip -mall project to include restaurants and service businesses. Construction of the new 20,000 sq ft facility took place throughout 2016, AT&T Wireless, Dunkin Donuts, Joy Kitchen, Sport Clips, Natural Nails Salon and Twin Cities Dental all completed tenant finishes with 2017 openings. 9) In 2016, City Staff started 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 is being restored to a wetland with passive nature trails. Construction bids were received in late 2016 with the first phase of construction completed the summer and fall of 2017. Other restoration elements including the addition of a boardwalk will continue through 2018. 10) 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 8 Mayor, Councilmembers, Residents 2018 Adopted City Budget Recreational long term needs of the community. In 2017, the City hired two architectural firms to start the design for a Public Works Maintenance Facility, cold storage building and to explore a potential expansion of the Andover YMCA/Community Center. 11) 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 2017, the City hosted recycling events monthly (on weekends), generally with a specific focus, such as paper shredding and appliance or electronics collection. 12) 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. 13) The City's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2016 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 fifteenth consecutive year receiving the award and it is anticipated that the City's CAFR for the year ended December 31, 2017 will also achieve this award. 14) For the sixteenth year in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2017 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. 15) 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. 16) 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 2017, 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. 0 Mayor, Councilmembers, Residents 2018 Adopted City Budget OVERVIEW The Adopted 2018 Budget anticipates General Fund revenues in the amount of $11,085,238 to meet anticipated budgeted expenditures in the amount of $11,265,315, thus a decrease in (use of) fund balance is planned. As a result, total General Fund balance reserves are projected to increase to 61.1% in 2018 as compared to 60.2% in 2017 in conjunction with corresponding expenditures for those years. The Adopted 2018 General Fund Budget represents an increase in expenditures of $273,096 over last year. Designated capital operating levies increased $189,860 in 2018 bringing the balance to $2,134,014. The 2018 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 12.88% from 13.49% for the prior year. The increase in General Fund expenditures is primarily related to the increase in the Sheriff's contract and a reallocation of an employee to Facility Management. 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; in 2017, the City received zero LGA funding; and as notified by the State, the City will be receiving zero in 2018. General Fund expenditure trends since 2012 are as follows: IR Mayor, Councilmembers, Residents 2018 Adopted City Budget Expenditures Population Per Capita 31,125 31,692 31,874 31,704 32,335 32,600 32,900 Note: The population figures were estimates by Met Council. $ 284.55 $ 298.34 $ 310.01 $ 311.95 $ 317.29 $ 336.79 $ 342.41 $350 Expenditures Per Capita $330 $310 $290 $270 $250 2012 2013 2014 2015 2016 2017 2018 The 2018 Adopted Budget provides for an adopted tax capacity rate of 34.587%, which compares to 37.374% for 2017 (this rate comparison excludes the open space and watershed levies). The 2018 decreasing tax capacity rate is reflective of the increase in the fiscal disparities distribution and the growth in the tax capacity values. Expenditures Values Before Transfers % Change 2012 Actual $ 8,856,700 n/a 2013 Actual $ 9,455,074 6.76% 2014 Actual $ 9,881,404 4.51% 2015 Actual $ 9,890,003 0.09% 2016 Actual $ 10,259,726 3.74% 2017 Estimate $ 10,979,471 7.02% 2018 Adopted $ 11,265,315 2.60% Expenditures Population Per Capita 31,125 31,692 31,874 31,704 32,335 32,600 32,900 Note: The population figures were estimates by Met Council. $ 284.55 $ 298.34 $ 310.01 $ 311.95 $ 317.29 $ 336.79 $ 342.41 $350 Expenditures Per Capita $330 $310 $290 $270 $250 2012 2013 2014 2015 2016 2017 2018 The 2018 Adopted Budget provides for an adopted tax capacity rate of 34.587%, which compares to 37.374% for 2017 (this rate comparison excludes the open space and watershed levies). The 2018 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% 2012 2013 2014 2015 2016 2017 2018 Note: The tax capacity rates do not include the open space and watershed levies. 11 Tax Capacity Values Tax Capacity Rates % Change % Change 2012 $ 23,449,581 n/a 42.090% n/a 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 $ 27,920,178 4.00% 37.328% -2.57% 2018 $ 31,321,817 12.18% 34.587% -7.34% 50.0% Tax Capacity Rates 45.0% 40.0% 35.0% 30.0% 2012 2013 2014 2015 2016 2017 2018 Note: The tax capacity rates do not include the open space and watershed levies. 11 Mayor, Councilmembers, Residents 2018 Adopted City Budget Some highlights of the Adopted 2018 Budget are as follows: Capital Projects Levy — The 2018 Budget specifically designates $2,134,014,154 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($800,000), Facility Maintenance Reserve ($50,000), Road and Bridge ($1,169,014), Pedestrian Trail Maintenance ($100,000) 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 $1,269,014 is for transportation programming related to maintaining City streets, roadways and pedestrian trails. Approximately 7.88% ($100,000) of this levy is dedicated towards pedestrian trail maintenance. $354,904 is designated to the City's seal coating and crack sealing programs, with the remaining $814,110 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 10.23% of the Gross Tax Levy and increased $89,860 as compared to the 2017 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 2018 levy remains the same as the 2017 levy. Capital Equipment/Projects — Under the Capital Projects Levy, $800,000 is designated to underwrite a wide range of capital improvement/equipment project expenditures. $525,000 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 $275,000 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 2018 levy increased $50,000 as compared to the 2017 levy. • Facility Maintenance Reserve —Under the Capital Projects Levy, $50,000 is designated to help fund many maintenance related repairs identified in the recent facility condition assessment. New for 2018. 12 Mayor, Councilmembers, Residents 2018 Adopted City Budget Sheriff's Police Contract Services — The Anoka County Sheriff's contract reflects a 3.07% general increase ($90,975). The 2018 Budget maintains the existing 80 hours per day of patrol service, six hours per day of service provided by a Community Service Officer, two Patrol Investigators, School Liaison Officers in the middle and high school, and 50% of a Crime Watch Coordinator's position. Attorney - The City Attorney budget reflects no change over the 2017 budget. City Attorney criminal prosecutions have increased over 15% since 2005. Council Memberships and Contributions — The following are included as part of the 2018 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 $ 9,518 - 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 2018 budget in other funds: ■ Youth First — City Partner Fee $ 2,000 Charitable Gambling Fund - program contribution (youth services) ■ Teen Center Funding (YMCA) $16,400 Charitable Gambling Fund - program contribution (youth services) ■ Alexandra House $ 3,000 Charitable Gambling Fund - program contribution (domestic abuse programs) ■ Senior High Parties $ 1,000 Charitable Gambling Fund - donation (youth programs) ■ Family of Promise $ 3,000 Charitable Gambling Fund - program contribution (homelessness programs) ■ Stepping Stone $ 900 Charitable Gambling Fund - program contribution (homelessness programs) 13 Mayor, Councilmembers, Residents 2018 Adopted City Budget ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost Reallocation — The 2018 Budget includes expanding the hours of the Fire Department Duty Crew to cover weekends, no new positions will be added. Cost -of -Living Adjustments — The total compensation package for 2018 includes step changes for eligible employees and a 3.0% 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 not increase in 2018. 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 eleventh 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 2017. Andover Animal Hospital (started 2016, completed 2017) constructed a new 5,815 square foot facility at 1730 — 139th Lane NW. ReMax Results (started 2016, completed 2017) constructed a 13,600 square foot building at 2677 Bunker Lake Blvd. Shoppes at Andover (started 2016, completed 2017) was also constructed which is a 12,998 square foot multi -tenant building that has the following tenants: AT&T Wireless, Dunkin Donuts, Joy Kitchen, Sports Clips, Natural Nails Salon, and Twin Cities Dental. New residential development included 28 lots known as Catchers Creek Second Addition and 58 lots known as Country Oaks North Second Addition. The City currently has a supply of 140 urban lots and 20 rural lots (includes the lots above). In 2017, the City issued 94 new single-family building permits with a total valuation of $27,847,716 compared to 111 new single-family building permits with a total valuation of $28,893,036 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. 14 Mayor, Councilmembers, Residents 2018 Adopted City Budget The growth within the last several years continues to produce a profound increase in demand for City services and has significantly added to the City's infrastructure and staffing needs. Consequently, this change will result in significant future operational and maintenance costs. The chart below illustrates the significant growth that has occurred since 1995. Growth Factors 1995 2017 Estimate % Change Population 20,497 32,900 60 Housing Units 6,300 10,391 65 Streets (miles) 150 206 37 Cul-de-sacs 155 350 125 Storm Sewer (miles) 18 77 327 Water Main (miles) 35 119 240 Sanitary Sewer (miles) 53 98 85 Parks (Number) 54 68 26 Developed Park Acreage 512 595 16 Trails (miles) 0 37 100 Developed Residential (acres) 7,750 9,607 24 Undeveloped Residential (acres) 14,616 12,889 (12) Fire/Medical Runs 625 850 36 Growth Factors 2000 2017 Estimate % Change Calls for Service — Police 9,588 15,738 64 Incident Reports 8,385 8,739 4 Note: Reference Year is 2000 due to database reporting changes 15 Mayor, Councilmembers, Residents 2018 Adopted City Budget CAPITAL OUTLAY/IMPROVEMENTS Requests for capital outlay/improvements in the Adopted 2018 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 2018 Budget amounts to $6,378,000. Of that total amount, $155,000 will be funded by the General Fund levy, $828,500 will be funded by the capital equipment/project levy and reserves and the remaining through other funding sources. The City's 2018 - 2022 Capital Improvement Plan (CIP) process was instrumental in producing the outcomes outlined in the 2018 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 2018 — 2022 CIP, please see the appendix for a brief description of each item and/or go to the City's website at www.andovennn.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. Replacing playground structures only saves about $500 in miscellaneous replacement parts on an annual basis since they still need to get routinely inspected. $35,000 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. $210,000 is budgeted for the replacement of a one ton crew cab truck, the purchase of a brush cutter, replacement of a track skid steer and the replacement of a small extended cab pickup. Funding for these items is through the new capital equipment purchases levy. $25,000 is planned for irrigating two small parks, funded by park dedication funds. This will add about $1,000 each to the parks annual operating budget for water and additional turf maintenance. Facility Management - $130,000 is budgeted for parking lot maintenance. Replacing the parking lot at Fire Station #1 will save approximately $1,500 on an annual basis since it will now longer need to be crack filled and pot -hole patched. Parking lots will be evaluated in the spring to determine the appropriate type of maintenance to extend their useful life. $450,000 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. $10,000 is budgeted for replacement 16 Mayor, Councilmembers, Residents 2018 Adopted City Budget of floor tile and carpeting in designated areas. Funding for these projects is through the Capital Equipment Reserve Capital Projects Fund and the issuance of improvement bonds. Community Center - $200,000 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. Items funded through operations include carpeting replacement ($12,000), a pickle ball insert/net system ($5,000) and the purchase of inflatables ($5,000) used for gym rentals. Purchasing our own inflatables will save about $750 annually by not having to rent them. 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. $85,000 is budgeted for the replacement of grass truck used to fight wild fires. The new grass truck will have minimal monetary savings but will provide numerous operational/mechanical efficiencies going from a 1991 fire truck to a current model with up to date firefighting technologies. These are 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 now needs, capital purchases, emergency contingencies and other specific needs. The General Fund projected to use $180,077 of fund balance to cover operations in 2018. The work done by staff relative to the 2017 revenue and expenditure estimates has achieved the Council 2018 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 45% of planned 2018 General Fund expenditures available from the 2017 budget (the targeted fund balance is approximately $5,069,392). The estimates are also necessary to preserve the following emergency reserve fund balances for core services: ■ Snow Emergency ($85K) - salt and sand needed for an abnormal snowfall season ■ Public Safety ($85K) - police, fire and civil defense unexpected costs ■ Facility Management ($85K) - roofing, HVAC and emergency facility repairs ■ Information Technology ($85K) - phone system and network server emergencies ■ Economic Development ($100K) — TIF Management Fee Migration ■ Fiscal Disparities Fluctuation ($200K) — changes in calculation 17 Mayor, Councilmembers, Residents 2018 Adopted City Budget In the Special Revenue Funds, the Economic Development Authority (EDA) Fund is projected to decrease $99,252 largely due to the decertification of the tax increment finance district in 2012, 2014 and 2016 which were 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 Debt Service Funds are projected to increase by $95,532 in 2018 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 and Sewer Trunk Fund are decreasing ($673,561 and $364,090) for the installation of water main and sanitary sewer in areas that aren't currently on the system. The Road and Bridge Fund is decreasing ($913,287) in 2018 due to the scope of the reconstruction projects and the spend -down of the advance allotment received in 2017 from the State of Minnesota. The Park Dedication Projects Fund is increasing ($50,950) due to the lack of funds available to do a major project. The Building Fund is decreasing ($143,719) 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 ($566,825) due to the construction of trail segments. The Tax Increment Projects Fund is decreasing ($730,000) as new redevelopment/economic strategies take place. 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: 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. 18 Mayor, Councilmembers, Residents 2018 Adopted City Budget 2. FISCAL RESPONSIBILITY -the City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens are to have confidence in government. 3. ETHICS AND INTEGRITY- the City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4. TREATING THE CITIZEN AS OUR CUSTOMER - the City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and integrity. 5. OPEN AND HONEST COMMUNICATION - the City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. The short term (one to five years) organizational goals are: 1. FISCAL GOALS - the City recognizes the following fiscal values as the basis for delivering current and future services to the residents of Andover. A. Assure city financial stability through cost effective services. B. Focus spending on community needs; wants need to be supported by new or redirected sustainable revenues. C. Explore new revenue streams and capture new growth for community needs. D. City investments need to focus on long term sustainability. 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. 19 Mayor, Councilmembers, Residents 2018 Adopted City Budget B. Work with business owners and property owners to assist them in being successful in our community. C. Continually analyze existing commercial areas to determine if expansion is feasible and seek out new areas to better serve the community. D. Continually evaluate how to meet sewer/water and street needs of any proposed development and redevelopment projects. E. Review City development processes to help reduce unnecessary steps, time delays and development costs. F. Review development requirements to minimize impacts from overly burdensome requirements. G. Be aware of negative environmental impacts to our community including proposed developments and the attempt to mitigate where economically feasible and practical. H. Evaluate housing programs to determine useful programs that we could adopt that have a positive impact on community market value and preserve neighborhoods. I. Evaluate whether we are adequately providing locations, through zoning, for expanded commercial areas and "starter homes". J. Begin discussion for the 2018 Comprehensive Plan update, soliciting input from large property owners on land set aside for future development. K. Respond to regional and state initiatives that impact our City or residents through our organizational memberships. 3. COLLABORATION GOALS -the City is supportive of collaboration efforts that are cost-effective and improve efficiency in delivering services. A. Cautiously renew any new mandate to determine whether we need to act. B. Foster positive relationships with: school districts, Anoka County, and nearby cities. 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. 20 Mayor, Councilmembers, Residents 2018 Adopted City Budget A. Evaluate parks maintenance to ensure the City is preserving park assets and not committing to unsustainable service delivery. B. Continue fostering positive relationships with athletic, youth, and other service organizations to obtain their input and seek their contributions with time and funds towards community improvements. C. Alter packet format to improve viewing function on tablets and reduce redundancy found in the format. D. Keep current with advances in technology where appropriate. E. Analyze the "administrative fine" process to reduce use of courts, increase local revenues, and improve code compliance. F. Commit to providing the public with effective Public Safety through Fire and Law Enforcement services. G. Pursue local programming for the community youth. H. Continually review our processes to reduce unnecessary or unwanted service deliveries. I. Encourage quality building standards. J. Begin comprehensive evaluation of future Public Works needs on the city campus, hire an architect, begin the construction of new maintenance facility and related projects along with parkway road to come from Nightingale Street that equally benefits all citizens of Andover. K. Begin space needs study for Community Center expansion and financial pro forma, continue conversations with partners about their needs and finances. Create public process for public input. L. Continually evaluate whether we are following our Park Dedication Study when spending park dedication funds. M. Continue to maintain Kelsey Round Lake Park as a signature nature park. N. Preserve current trails and complete trails where we have missing connections or need to improve pedestrian safety. 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. ON Mayor, Councilmembers, Residents 2018 Adopted City Budget E. Explore new methods of collecting public feedback. F. Continually review newsletter content. G. Plan and provide quality city services to residents and adapting to changing demographics. H. Look at ways information from resident survey can be incorporated into goals, plans and policies. I. Find ways to utilize volunteers and engaged residents. J. Evaluate whether current policies and codes inhibit families from improving and upgrading their homes and remove unnecessary barriers to allow increased market value and updating of private property in ways that enhance neighborhoods. K. Support improvements to the website that provide residents with information that is user-friendly so they can be informed about recreation opportunities. LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible to ensure the stability of the City's basic services. In light of past state aid reductions and previous years levy limits imposed by the state legislature and the current sporadic onset of levy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing sufficient revenues to fund City services as follows: ♦ 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 2018 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 22 Mayor, Councilmembers, Residents 2018 Adopted City Budget capital outlay will further distinguish the total costs of the service provided. The City has the ability to analyze these costs at the sub- category detail levels in support of overall policy goals. ♦ The development of work performance goals for each department to ascertain and measure how each operating division contributes to the City's overall public service mission. ✓ Each department is responsible for identifying relevant performance data to allow for an independent analysis of specific service outcomes. Data is reviewed to provide the Council and general public with a better understanding of the operational demands, resource inputs and performance outcomes associated with a specific service delivery system. ♦ The development of long-term financial models that identify anticipated trends in community growth and financial resources, designate appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. ✓ The City continually maintains various financial models to determine the long-term impacts of present day expenditure and financing decisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. ♦ The aggressive and appropriate investment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. ✓ Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates of deposit, municipal bonds, federal agencies and corporate paper and are designed to 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 23 Mayor, Councilmembers, Residents 2018 Adopted City Budget dedicated to paper files and provide a more economical and efficient data retrieval system. In addition, the City implemented financial management software to improve reporting and operating efficiencies. Both implementations have allowed the City to reduce staffing due to the increased efficiencies with each new system. ♦ The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended period of time to ensure that current and future taxpayers share equally in underwriting the cost of significant public expenditures. ✓ The City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existing and future taxpayers share equally in the cost. In addition, the City has established a separate capital projects levy to underwrite the cost of selected capital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. The five year Capital Improvement planning process is critical in achieving these results. ♦ Involving all employees in the process of re-engineering the work environment by encouraging cross -training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. ✓ City staff is encouraged to idents work practice issues that are inefficient or overly bureaucratic. The management team is committed to involving their employees and fostering an environment that challenges the status quo of City operations. ♦ Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointly purchase equipment and develop strategies to deal with local issues using a regional approach. ✓ 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 ofpublic 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 2018 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. 24 Mayor, Councilmembers, Residents 2018 Adopted City Budget 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. Budfzetary Process Guiding the City budget process were Council policy guidelines that were described earlier in this message. The budget process was approached by employing strategies associated with extending the useful life of existing equipment; the utilization of cost center accounting that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; and purchasing new equipment and introducing new technologies that allow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in City operations. The budget process included the opportunity for all department heads and supervisors to actively participate in a team process. Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the same framework in developing a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. 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; 25 Mayor, Councilmembers, Residents 2018 Adopted City Budget • the need to focus on developing an alternate framework of special revenues and user fees as alternate funding mechanisms to gradually reduce the City's reliance on tax levies by recovering service costs from the appropriate users of the service; • the recognition that the City should work to assist the community in meeting challenges as a partner and not as the sole provider; and • a strong voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The 2018 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, Jim Dickinson City Administrator / Finance Director 26 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. R096-17 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2018 BUDGET AND 2018 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, 2017; 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, 2017. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2018 City of Andover Budget and the 2018 property tax levy totaling $12,416,357 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2018 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 11,085,238 General Fund $ 11,265,315 Special Revenue Funds 1,577,018 Special Revenue Funds 1,656,938 Debt Service Funds 1,899,087 Debt Service Funds 1,803,555 Capital Projects Funds 3,821,437 Capital Projects Funds 7,159,569 Enterprise Funds 5,426,952 Enterprise Funds 5,313,315 Internal Service Funds 1,172,633 Internal Service Funds 1,221,072 Total $ 24,982,365 Total $ 28,419,764 Adopted by the City of Andover this 5th day of December 2017. ATTEST: Michelle Harmer — Deputy City Clerk CITY OF ANDOVER Julie Trude - Mayor 27 CITY OF ANDOVER, MINNESOTA 2018 Property Tax Levy 2018 Levy General Fund Levy General Operations $ 8,543,256 Park Repair/Replacement Items 100,000 Total General Fund 8,643,256 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 188,777 2012C Taxable G.O. Abatement Bonds 972,055 2014A G.O. Equipment Certificate 294,945 2016A G.O. Equipment Certificate 143,310 Total Debt Service 1,599,087 Other Levies Capital Projects Levy Capital Equipment/Project 275,000 Capital Equipment Purchases 525,000 Facility Maintenance Reserve 50,000 Parks Projects 15,000 Road & Bridge 1,169,014 Pedestrian Trail Maintenance 100,000 Lower Rum River Watershed 40,000 Total Other 2,174,014 Gross City Levy $ 12,416,357 28 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. R096-17 adopting the City of Andover 2018 Budget and 2018 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 5th day of December 2017. Michelle Harmer — Deputy City Clerk 29 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. 30 Budget Development Process The Budget Process Andover City ordinance 216, Section 2., Major Areas of Accountability requires the City Administrator to submit an annual budget to the City Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that the City Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 15tH Beginning in levy year 2002, the State of Minnesota is allowing certain governmental units exemption from the public hearing and publication requirement if its total proposed property tax levy does not exceed its previous year final property tax levy by more than the percentage increase in the implicit price deflator. The City of Andover did not fall under this exemption and held a meeting pertaining to the 2018 Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 19, 2017 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 5, 2017. The adopted 2018 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 28, 2017. 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 2018 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 31 CITY OF ANDOVER 2018 Budget Development Calendar Date Activity March 28, 2017 Council Workshop to discuss budget guidelines. April 3, 2017 2018 Budget Calendar. April 3 —May 8, 2017 Prepare base budgets and line item budget pages. April 18, 2017 Council adopts 2018 Budget Development Guidelines. April 25, 2017 Council budget progress report distributed and Council budget discussion. May 8, 2017 Distribution of base budgets, personnel services, capital budget forms and line item budget pages to all ** no exceptions Department Heads. May 8, 2017 Begin preparation of performance measures. May 23, 2017 Council budget progress report distributed and Council budget discussion. June 1, 2017* Department of Revenue notifies of required dates. June 2, 2017 Prepare preliminary 2018 revenue estimates. June 27, 2017 Council budget discussion. July 1, 2017** Requests for additional full-time staff to City Administrator. July 1, 2017** 2018 Budget forms and prioritization of adjustments to base, capital outlay requests due to Finance. July 1, 2017** Staff preparation of 2017 budget expenditure estimates. July 5 — 7, 2017 Compile and prepare documents for Management Team. July 7, 2017 General Fund levy calculations. July 10 —14, 2017 2018 Budget Decision packages prioritized and finalized. July 14, 2017 Deadline for updated performance measures to City Administrator. July 17 — 21, 2017 Preparation of final draft of 2018 Proposed Budget for Council Workshop. *preliminary ** no exceptions Continued 32 Responsibility City Council / Staff Admin / Finance Admin / Finance City Council / Staff Council / Staff Department Heads Department Heads Council / Staff State Finance / Department Heads City Council / Staff Department Heads Department Heads Finance / Department Heads Finance Finance Admin / Mgmt Team Admin / Department Heads Finance Date July 18, 2017 August 4, 2017* August 22, 2017 August 22, 2017 September 1, 2017 September 19, 2017 (Req.) September 26, 2017 CITY OF ANDOVER 2018 Budget Development Calendar Activity Council budget progress distributed. Receives 2018 Proposed Budget. County notifies City of school district & county public hearing dates. City Council follow-up workshop for review of 2018 Proposed Budget. City Council preview of Proposed 2018 Tax Levy Presentation. State Department of Revenue (DOR) to certify levy limits for 2018. City to adopt proposed 2018 tax levy and select public hearing dates. City Council Budget discussion — focus on SRF, DSF, CPF, EF & ISE September 29, 2017 (Req.) Proposed 2018 tax levy must be certified to County. September 30, 2017 (Req.) City to file proposed 2018 special levies with DOR October 24, 2017 City Council Budget discussion — focus on DSF & CPF. November 6 — 17,2017* County Auditor to mail parcel specific notices. November 28, 2017 City Council preview of Public Hearing. December 1 - 14, 2017* (Req.) City conducts Public Hearing during this time frame. December 5, 2017 City of Andover Public hearing on 2018 Tax Levy and Operating Budget. December 5, 2017 City Council adopts 2018 Tax Levy and Operating Budget. December 28, 2017* (Req.) Deadline for staff to certify 2018 tax levy to State and County. January 19, 2018* Finalize 2018 Actual Performance measures. Adopted budget printed and distributed. January 19, 2018 Publication of adopted budget information in newspaper. January 26, 2018 Department of Revenue budget form completed and submitted. March 6, 2018 Submit budget award application to GFOA. (Due 90 days after budget adoption.) *preliminary ** no exceptions 33 Responsibility City Council / Staff County City Council / Staff City Council / Staff DOR City Council City Council / Staff Finance Finance / DOR City Council / Staff County City Council / Staff City Council City Council City Council Finance Finance Finance Finance Finance 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 unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, 3) unassigned. 34 7. Annually, the Finance Department will prepare a comprehensive annual financial report. This report shall be made available to the elected officials, city management, bond -rating agencies, and the general public. 8. The City will annually submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA) to determine its eligibility to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Budget Monitoring and Amendments The Andover Financial Policies identifies an Operating Budget Policy which includes the process for monitoring and amending the budget, fund balance considerations and the capital improvement budget coordination, that policy is as follows: Operating Budget Policy 1. The formal budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. A. The City will attempt to maintain its present service level for priority and essential services subject to available revenues. New services will be considered for funding within available resources. B. The City of Andover will utilize a "bottom-up" resource allocation approach. Each department will have an opportunity to request personnel, goods, capital items and services needed to carry out its responsibilities in a timely manner. C. The resources to fund the budget will include all revenues reasonably anticipated from all sources and the unrestricted unassigned fund balance estimate to be carried forward at the beginning of the fiscal year. D. The City enterprise operations are to be self-supporting, including capital improvements and depreciation. Enterprise operations are to be reviewed annually for self-sufficiency. E. The City will utilize procedures that allow departments to integrate priorities and objectives into the budget requests. 2. The operating budget, authorizing expenditure of City monies, will be adopted annually by the City Council at the department level. Expenditures may not exceed the total for any department, within a fund, without the City Council's approval. The authority to make changes to the adopted City Budget during the operating year is as follows: A. City Council approval is required for all budget adjustments or transfers that will increase the department's adopted expenditure budget, or adjustments that are made to facilitate a department restructuring. B. City Council approval is required for any budget adjustment that exceeds either $10,000 or 5% of a department's expenditure budget, except that adjustments under $10,000 may be approved as provided in C. & D. below. C. City Administrator'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. 35 D. Budget adjustments and transfers among expenditure accounts may be authorized during the fiscal year by the City Administrator and the Finance Director if there is no effect on the department's gross expenditure budget and the adjustment is not to employee compensation. E. Under no circumstances should budget adjustments be split to avoid approval limits. 3. The City will budget to maintain fund balances at adequate levels to ensure that sufficient resources are available for current and future expenditures, whether planned or unforeseen. A. The City will budget to maintain an unassigned fund balance for each operating fund, to support operations until current tax revenues are received. Based upon the semi-annual collection of local taxes, each operating fund, relying on property tax related revenues, should maintain an unassigned fund balance at year-end necessary for approximately 6 months of the subsequent year's operation. B. The City will budget to maintain an unassigned fund balance available for contingencies of between 1 percent and 3 percent of budgeted expenditures for each operating fund in order to finance unforeseen items and events that occur during the course of the year. It is not necessary for each fund to hold its own contingency. The General Fund may hold contingencies for other funds when appropriate. C. All unencumbered appropriations and encumbered purchases less than $1,000 lapse at year-end. However, the appropriation authority for all major capital projects and capital assets carries forward automatically to the subsequent year. Appropriations for encumbered purchases in excess of $1,000, which are not budgeted in the ensuing year, may be transferred to the subsequent year with the approval of the City Administrator and Finance Director. The current year appropriation is reduced and the subsequent year appropriation is increased. 4. The City will maintain a budgetary control system to ensure adherence to the budget and will prepare regular reports, which compare actual revenues, and expenditures to budgeted amounts. 5. The City will coordinate development of the Capital Improvement Budget with the development of the annual operating budget. Each capital improvement project is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel required and additional operating expenses. 6. The capitalization threshold for assets of the City of Andover, as defined in the Fixed Asset Policy, applies to all budgets and purchases associated with the Capital Expenditure series of accounts. 7. Annually, the Finance Department will prepare an Annual Operating Budget report. This report will be made available to elected officials, City management, bond -rating agencies, and general public. 8. The City will annually submit its annual operating budget document to the GFOA to determine its eligibility to receive the GFOA's Distinguished Budget Presentation Award. Determination of Revenue Estimates The Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. Discussion regarding specific revenue sources can be found in the summary information section of the budget. The Andover Financial Policies identifies a Revenue Policy that outlines the City's revenue philosophy and that policy is as follows: 36 Revenue Policy 1. The City will attempt to maintain a diversified and stable revenue system to shelter it from short -run fluctuations in any single revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of economic downturns. 2. The City will follow an aggressive policy of collecting revenues. 3. The City will periodically review fees and charges in order to keep pace with the cost of providing the service or that percentage of the total cost deemed appropriate by the City, and will conduct a public hearing or adopt an ordinance, as required by law, prior to setting fees or charges. 4. The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax fees and charges. 5. The City will allocate Citywide revenues to funds, which provide services to the entire City. 6. All revenues, reasonably expected to be unexpended and unencumbered at the end of the year, will be anticipated as "available fund balance" in the budget of the following year. 7. The City will attempt to invest all cash holdings in accordance with the cash and investment policy and maximize those holdings with an effective payment policy. Capital Improvement Program Andover's Capital Improvement Program is intended to provide the City Council and staff with a process for identifying and prioritizing capital projects in order to coordinate the financing and timing of improvements, which maximizes the return to the public. The process will enable the City to evaluate long-term cost and benefits of projects being adopted for the coming year (2018) against those projects planned between 2019 and 2022. The Capital Improvement Program follows the following policy: Capital Improvement Policy 1. A Capital Improvements Plan (CIP) will be developed for a period of five years. As resources are available, the most current year of the CIP will be incorporated into the current year operating budget as the Capital Improvements Budget (CIB). The CIP will be reviewed and updated annually. Years two through five are for planning purposes only. 2. The City will maintain its physical assets in a manner, adequate to protect the City's capital investment and to minimize future maintenance and replacement costs. The City will provide for maintenance and replacement from current revenues where possible. 3. To be considered in the Capital Improvements Program, a project must have an estimated cost of at least $5,000 in one of the calendar years of the project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items that are operating expense (such as maintenance agreements, personal computer software upgrades, etc.) will not be considered within the CIP. 4. Capital projects, which duplicate other public and/or private service, will not be considered. 37 5. The City will identify the estimated costs and potential funding sources for each capital project prior to inclusion in the CIP. The operating costs to maintain capital projects shall be considered prior to the decision to undertake the capital projects. 6. Capital projects and/or capital asset purchases will receive a higher priority if they meet a majority of the following criteria: A. Mandatory project B. Maintenance project (approved replacement schedules) C. Improve efficiency D. Provide a new service E. Policy area project F. Broad extent of usage G. Length of expected useful life H. Positive effect on operation and maintenance costs I. Availability of county/state/federal grants J. Elimination of hazards (improves public safety) K. Prior commitments L. Replacement due to disaster or loss 7. The CIP is to be presented by the City Administrator and Management Team annually to the City Council for approval. Any substantive change to the CIP after approval must be approved by the City Council. Debt Administration The City of Andover has adopted the following Debt Policy: 1. The following Debt Policy should be used to provide guidelines for debt decisions. There are no absolute rules or formulas in determining the level of City debt. Each situation requires a thorough review of the City's debt position, financial health and economic forecast. The limitations of this policy refer to City of Andover debt only (excludes EDA and HRA). 2. The City will maintain good communications with bond rating agencies and will try to improve or maintain its current AA+ bond rating so that the City's borrowing costs are minimized and access to credit is preserved. 3. The City will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency beyond the City's control or reasonable ability to forecast. 4. The City may use long-term debt financing when all of the following conditions exist: A. When non-recurring capital improvements are desired, and B. When it can be determined that present and future citizens will receive a benefit from the improvement, and C. When the cost benefit of the improvement, including interest cost, is positive. 5. The issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. For purposes of this policy, current resources are defined as that portion of fund balance in excess of appropriate required reserves and designations. The City of Andover will not pledge indebtedness to outside agency financing, unless the benefit is for City of Andover residents. 38 6. The City of Andover will limit the amount of total net general obligation debt to no more than 3% of the estimated market value. (Minnesota Statutes limit on debt is 3% of the estimated market value). 7. The payback period of the bonds or notes will not exceed the estimated useful life of the capital asset constructed or purchased. 8. The City will conservatively project the revenue sources utilized to repay the debt (i.e., taxes for G.O. debt are levied at 105% of the required debt service). 9. Capital notes and leases may be used to finance equipment purchases anytime the total cost of the purchase exceeds $10,000, the useful life of the equipment is greater than five years, the financing rate is less than or equal to the current and projected investment rates, or the purchase is of a non-recurring nature (copy machines and information technology equipment). 10. The City will follow a policy of full disclosure on every Comprehensive Annual Financial Report and official statement. Investment Policy The City of Andover has adopted the following Investment Policy: 1. Scope — this policy applies to the investments of all financial assets of the City of Andover except investments of employees' investment retirement funds. 2. General Objectives — the primary objectives, in priority order, of investment activities shall be safety, liquidity and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity. 3. Standard of Care A. Prudence. The standard of prudence, meaning not for speculation and with consideration of the probable safety of the capital as well as the probable investment returns, shall be used by investment officials. B. Ethics and Conflicts of Interest. Employees involved in the investment process shall have no personal business activity that could conflict with the proper execution and management of the investment program, or could impair their ability to make impartial decisions. C. Delegation of Authority. Authority to manage the investment program is granted to the Finance Director who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy and applicable state statutes. 4. Safekeeping and Custody A. Authorized Financial Dealers and Institutions. A list will be maintained of financial institutions authorized to provide investment services. 39 B. Internal Controls. The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. C. Delivery vs. Payment. All trades, where applicable, will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds. 5. Suitable and Authorized Investments A. Investment Types. The following investments will be permitted by this policy and are those defined by state and local where applicable: • U.S. government obligations, U.S. government agency obligations and U.S. government instrumentality obligations which have a liquid market with a readily determinable market value; • Certificates of deposit and other evidences of deposit at financial institutions, bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A -1,P-1, or F-1, or higher) by a nationally recognized rating agency; • Investment-grade obligations of state, local governments and public authorities; • Repurchase agreements whose underlying purchased securities consist of the investment types listed above. • Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar- denominated securities; and • Local government investment pools, either state -administered or through joint powers statutes and other intergovernmental agreement legislation. B. Collateralization. Full collateralization will be required on non-negotiable certificates of deposit. C. Repurchase Agreements. Repurchase agreements shall be consistent with GFOA Recommended Practices on Repurchase agreements. 6. Investment Parameters A. Diversification. Investments shall be diversified by security type and institution. B. Maximum Maturities. To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing, or having average lives, of more that five years from the date of purchase. 7. Reporting A. Methods. The Finance Director shall prepare an investment report, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made quarterly. B. Performance Standards. The investment portfolio will be managed in accordance with the parameters specified within this policy. C. Marking to Market. The market value of the portfolio shall be calculated at least quarterly. 8. Policy Considerations A. Exemption. Any investment currently held that does not meet the guidelines of this policy (originally adopted April 6, 1999) shall be exempted from the requirements of the policy. B. Amendments. This policy shall be reviewed as needed or requested by City Council. 40 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, 2017. This is the sixteenth 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 Intergov'I Rev Invest. Income Tax Increments Charges for Svc Prop Taxes $0.00 $4.00 $8.00 $12.00 Millions 2018 Budget ❑ 2017 Est ❑ 2016 Actual ❑ 2015 Actual City of Andover 2018 Revenue by Source Spec Assess MiscRev 2% 7% Intergov'I Rev 5% Invest. Income 1% Tax Increments 0% Charges for Svc 33% q4 Prop Taxes 52% 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 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Estimate 2018 Budget Property Tax — Charges for Services General Property Taxes Property taxes are a revenue source in the General, Special Revenue, Debt Service and Capital Projects Funds. This revenue source is primarily used in the General Fund and is determined on the basis of the availability of other revenue sources and the expenditure level necessary to conduct City business in accordance with Council policy and directives. The original goal for the 2018 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 3.98% as compared to 2017. 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 2018 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 1 $4,000,000 $ 3,500,000 $ 2,500,000 $ 2,000,000 $1,500,000 $1,000,000 $500,000 $0 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Estimate 2018 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 2012, 2014 and 2017, 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 and 2018, LGA was again eliminated for the City. 44 Revenue Projections — Investment Income and Special Assessments $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Estimate 2018 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 2018 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 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Estimate 2018 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 2018 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 2018, 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 2013 and 2016 is due to land sales in the Tax Increment Projects Capital Project Fund. 46 CITY OF ANDOVER 2018 Budget Summary By Fund Type City of Andover - Budgeted Funds Total Revenues: $24,982,365 Total Expenditures: $28,419,764 Governmental Funds General Fund Special Revenue Funds Debt Service Funds Revenues: $11,085,238 Revenues: $1,577,018 Revenues: $1,899,087 Expenditures: $11,265,315 Expenditures: $1,656,938 Expenditures: $1,803,555 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: $3,821,437 Expenditures: $7,159,569 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: $5,426,952 Expenditures: $5,313,315 Sewer Fund Water Fund Storm Sewer Fund Internal Service Funds Revenues: $1,172,633 Expenditures: $1,221,072 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 2018 Budget Summary Revenues and Expenditures Fund Summary Actual Adopted Estimate Budget 2016 2017 2017 2018 $ 38,975,332 11,038,567 1,583,550 2,408,636 6,528,567 5,344,379 1,239,267 28,142,966 67,118,298 10, 509, 726 1,516,166 2,308,449 5,335,317 4,733,099 1,027,173 25,429,930 $ 41,688,368 $ 2,713,036 6.96% 48 $ 41,688,368 10, 825,139 1,567,000 1,910,047 5,053,538 5,315,854 1,161,507 25,833,085 67,521,453 10, 992, 219 1,686,420 2,269,238 7,353,217 5,292,421 1,207,471 28,800,986 $ 38,720,467 $ (2,967,901) -7.12% $ 41,688,368 10, 998, 472 1,539,700 1,905,047 6,841,002 5,299,854 1,162, 985 27,747,060 69,435,428 11, 729, 471 1,571,034 2,270,639 6,918,962 5,292,421 1,215,341 28,997,868 $ 40,437,560 $ (1,250,808) -3.00% $ 40,437,560 11, 085,238 1,577,018 1,899,087 3,821,437 5,426,952 1,172, 633 24,982,365 65,419,925 11, 265, 315 1,656,938 1,803,555 7,159,569 5,313,315 1,221,072 28,419,764 $ 37,000,161 $ (3,437,399) -8.50% CITY OF ANDOVER 2018 Budget Summary Revenues and Expenditures -All Funds 49 Actual Budget Estimate Budget 2016 2017 2017 2018 Fund Balance/Net Assets, January 1 $ 38,975,332 $ 41,688,368 $ 41,688,368 $ 40,437,560 Revenues General Property Taxes 11,809,352 12,014,555 12,016,555 12,494,357 Tax Increments 91,808 118,480 85,000 85,000 Special Assessments 818,065 687,000 845,069 402,400 Licenses and Permits 625,907 367,705 465,375 377,900 Intergovernmental 1,564,848 2,118,552 2,901,166 1,234,673 Charges for Services 7,835,648 7,739,283 7,746,183 7,796,335 Fines 88,600 100,750 90,150 90,250 Investment Income 467,789 292,800 287,300 288,050 User Charges 997,340 270,183 469,559 182,324 Meters 28,591 13,000 13,000 13,000 Penalties - 16,000 - - Miscellaneous 1,923,910 1,089,800 1,070,700 995,868 Total Revenues: 26,251,858 24,828,108 25,990,057 23,960,157 Other Financing Sources Operating Transfers In 1,343,223 1,004,977 1,757,003 1,022,208 Bond Proceeds 520,000 - - - Proceeds from Sale of Property 27,885 - - - Total Other Financing Sources: 1,891,108 1,004,977 1,757,003 1,022,208 Total Revenues and Other Sources: 28,142,966 25,833,085 27,747,060 24,982,365 Total Available: 67,118,298 67,521,453 69,435,428 65,419,925 Expenditures Personal Services 6,427,059 6,873,621 6,819,503 7,009,795 Supplies and Materials 1,161,195 1,486,797 1,461,447 1,505,953 Purchased Services 3,944,957 4,348,669 4,157,053 4,308,058 Other Services and Charges 6,614,537 8,300,233 8,501,583 7,812,133 Capital Outlay 2,698,380 3,540,800 3,056,015 3,984,500 Debt Service 3,240,579 3,245,889 3,245,264 2,777,117 Total Operating Expenditures: 24,086,707 27,796,009 27,240,865 27,397,556 Other Uses Operating Transfers Out 1,343,223 1,004,977 1,757,003 1,022,208 Total Other Uses: 1,343,223 1,004,977 1,757,003 1,022,208 Total Expenditures and Other Uses: 25,429,930 28,800,986 28,997,868 28,419,764 Fund Balance/Net Assets, December 31 $ 41,688,368 $ 38,720,467 $ 40,437,560 $ 37,000,161 Change in Fund Balance $ 2,713,036 $ (2,967,901) $ (1,250,808) $ (3,437,399) 6.96% -7.12% -3.00% -8.50 49 CITY OF ANDOVER 2018 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 $ 7,065,746 $ 705,492 $ 951,895 $ 23,281,066 $ 7,528,819 $ 904,542 $ 40,437,560 Revenues General Property Taxes 8,721,256 40,000 1,599,087 2,134,014 - - 12,494,357 Tax Increments - - - 85,000 85,000 Special Assessments - 402,400 402,400 Licenses and Permits 377,900 - - 377,900 Intergovernmental 766,274 37,500 430,899 - - 1,234,673 Charges for Services 746,700 693,900 - 5,186,102 1,169,633 7,796,335 Fines 90,250 - - - - 90,250 Investment Income 75,000 6,050 158,000 46,000 3,000 288,050 User Charges - - 182,324 - - 182,324 Meters - - - 13,000 13,000 Miscellaneous 129,300 799,568 - - 67,000 995,868 Total Revenues: 10,906,680 1,577,018 1,599,087 3,392,637 5,312,102 1,172,633 23,960,157 Other Financing Sources Operating Transfers In 178,558 - 300,000 428,800 114,850 - 1,022,208 Total Other Financing Sources: 178,558 - 300,000 428,800 114,850 1,022,208 Total Revenues and Other Sources: 11,085,238 1,577,018 1,899,087 3,821,437 5,426,952 1,172,633 24,982,365 Total Available: 18,150,984 2,282,510 2,850,982 27,102,503 12,955,771 2,077,175 65,419,925 Expenditures Personal Services 4,938,919 546,795 - 1,067,991 456,090 7,009,795 Supplies and Materials 693,423 87,020 320,700 404,810 1,505,953 Purchased Services 4,074,764 233,294 - - - 4,308,058 Other Services and Charges 1,458,209 462,529 3,243,500 2,287,723 360,172 7,812,133 Capital Outlay 100,000 22,000 - 3,604,500 258,000 - 3,984,500 Debt Service - - 1,803,555 196,719 776,843 - 2,777,117 Total Operating Expenditures: 11,265,315 1,351,638 1,803,555 7,044,719 4,711,257 1,221,072 27,397,556 Other Uses Operating Transfers Out - 305,300 - 114,850 602,058 - 1,022,208 Total Other Uses: - 305,300 - 114,850 602,058 1,022,208 Total Expenditures and Other Uses: 11,265,315 1,656,938 1,803,555 7,159,569 5,313,315 1,221,072 28,419,764 Fund Balance/Net Assets, December 31 $ 6,885,669 $ 625,572 $ 1,047,427 $ 19,942,934 $ 7,642,456 $ 856,103 $ 37,000,161 Change in Fund Balance $ (180,077) $ (79,920) $ 95,532 $ (3,338,132) $ 113,637 $ (48,439) $ (3,437,399) -2.55% -11.33% 10.04% -14.34% 1.51% -5.36% -8.50% 50 CITY OF ANDOVER Revenue Comparison - General Fund Actual Actual Actual Budget REVENUES Property Taxes $ 7,476,295 $ 7,634,715 $ 8,217,768 $ 8,420,354 License and Permits 364,430 452,616 625,906 367,705 Intergovernmental Revenues 697,491 749,570 733,953 766,150 Charges for Services 998,150 804,684 912,220 773,950 Fines and Forfeits 94,375 99,304 88,600 100,750 Interest Income 144,876 63,709 68,380 75,000 Miscellaneous Revenue 150,759 154,239 194,812 124,300 Transfers 196,930 196,930_ 196,930 196,930 TOTAL REVENUES $ 10,123,306 $ 10,155,767 $ 11,038,569 $ 10,825,139 City of Andover 2018 Revenue Comparison - General Fund Property Taxes Licenses & Permits Intergov'I Rev Charges for Svcs Fines & Forfeits Interest Income Misc. Rev Transfers $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 Millions o Budget 2018 ■ Estimate 2017 ■ Actual 2016 ■ Actual 2015 ■ Actual 2014 51 Estimate Budget $ 8,422,354 $ 8,721,256 465,375 377,900 827,706 766,274 770,050 746,700 90,150 90,250 75,000 75,000 150,907 129,300 196,930 178,558 $ 10,998,472 $ 11,085,238 City of Andover 2018 Revenue by Source - General Fund Misc. Rev Transfers 1% Interest Income 1% 1% Fines & Forfeits 1% Charges for Svcs 7% Intergov'I Rev 7% Licenses & Permits 3% Property Taxes 79% 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 2014 2015 2016 2017 2017 2018 $ 2,481,927 25% $ 2,511,970 25% $ 2,592,649 25% $ 2,883,511 26% $ 2,928,098 25% $ 3,010,679 27% 4,498,920 46% 4,503,332 45% 4,667,326 44% 4,862,558 44% 4,863,008 41% 4,978,056 44 2,819,372 29% 2,817,981 28% 2,966,674 28% 3,175, 822 29% 3,118, 037 27% 3,206,152 28 81,185 1 % 256,720 3% 283,077 3% 70,328 1 % 820,328 7% 70,428 1 $ 9,881,404 $ 10,090,003 $ 10,509,726 $ 10,992,219 $ 11,729,471 $ 11,265,315 City of Andover 2018 Expenditure Comparison - General Fund $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Millions 0 Budget 2018 ■ Estimate 2017 ■ Actual 2016 ■ Actual 2015 ■ Actual 2014 52 City of Andover 2018 Expenditures by Function -General Fund General Go 27 Other 1% Public Safety 44 blic Works 28 CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2018 Actual Actual Actual Actual Actual Budget* Estimate Requested* Change (*) 2012 2013 2014 2015 2016 2017 2017 2018 $ % GENERAL GOVERNMENT Mayor and Council $ 83,622 $ 83,595 $ 84,650 $ 85,060 $ 86,989 $ 89,991 $ 89,991 $ 91,298 1,307 1.45% Administration 140,048 147,503 169,218 172,296 187,876 199,541 199,541 203,833 4,292 2.15% Newsletter 22,336 17,677 20,974 21,042 22,731 26,000 24,500 26,000 0 0.00% Human Resources 12,485 17,907 18,038 15,908 13,404 27,913 20,913 28,431 518 1.86% Attorney 170,930 173,244 177,427 180,313 184,990 191,360 190,000 191,360 0 0.00% City Clerk 101,377 108,312 128,861 134,775 148,338 148,599 148,599 155,608 7,009 4.72% Elections 39,614 11,352 41,508 14,497 64,433 63,881 19,100 59,781 (4,100) -6.42% Finance 207,337 215,215 230,639 240,319 252,563 268,129 268,129 278,660 10,531 3.93% Assessing 143,338 144,561 145,051 146,315 146,473 150,000 149,000 154,000 4,000 2.67% Information Services 136,025 135,982 146,984 131,744 151,387 175,722 174,022 180,597 4,875 2.77% Planning & Zoning 318,523 349,489 387,308 406,045 414,141 462,212 461,912 438,827 (23,385) -5.06% Engineering 427,339 452,788 460,872 464,843 511,074 535,715 535,415 553,765 18,050 3.37% Facility Management 420,799 451,257 470,397 498,813 408,250 544,448 646,976 648,519 104,071 19.11% Total General Gov 2,223,773 2,308,882 2,481,927 2,511,970 2,592,649 2,883,511 2,928,098 3,010,679 127,168 4.41% PUBLIC SAFETY Police Protection 2,693,896 2,740,899 2,818,132 2,918,308 2,936,467 2,962,551 2,962,551 3,053,526 90,975 3.07% Fire Protection 1,015,825 1,126,979 1,264,018 1,165,223 1,285,417 1,422,522 1,423,222 1,423,914 1,392 0.10% Protective Inspection 354,753 423,495 390,908 391,951 424,247 446,688 446,438 462,164 15,476 3.46% Emergency Management 14,088 13,930 21,836 24,352 17,495 24,847 24,847 32,502 7,655 30.81% Animal Control 8,503 6,037 4,026 3,498 3,700 5,950 5,950 5,950 0 0.00% Total Public Safety 4,087,065 4,311,340 4,498,920 4,503,332 4,667,326 4,862,558 4,863,008 4,978,056 115,498 2.38% PUBLIC WORKS Streets and Highways 570,630 572,753 600,313 629,724 686,086 691,473 614,668 659,943 (31,530) -4.56% Snow and Ice Removal 420,175 630,799 637,154 442,078 468,173 568,257 547,777 562,706 (5,551) -0.98% Street Signs 170,200 162,861 187,935 204,495 167,282 215,244 215,244 219,418 4,174 1.94% Traffic Signals 27,457 26,241 34,901 30,170 27,919 37,000 37,000 37,000 0 0.00% Street Lighting 33,439 31,702 32,646 30,664 37,089 38,400 38,400 40,400 2,000 5.21% StreetLights- Billed 195,197 210,331 203,148 201,500 200,509 217,500 217,500 220,500 3,000 1.38% Park & Recreation 912,750 946,545 1,009,373 1,151,314 1,247,501 1,275,530 1,273,530 1,297,395 21,865 1.71% Natural Resource Preservation - - - - 7,255 10,197 12,697 11,574 1,377 13.50% Recycling 152,642 178,110 113,902 128,036 124,860 122,221 161,221 157,216 34,995 28.63% Total Public Works 2,482,490 2,759,342 2,819,372 2,817,981 2,966,674 3,175,822 3,118,037 3,206,152 30,330 0.96% OTHER 663,372 210,510 81,185 256,720 283,077 70,328 820,328 70,428 100 0.14% Total Other 663,372 210,510 81,185 256,720 283,077 70,328 820,328 70,428 100 0.14% GRAND TOTAL $ 9,456,700 $ 9,590,074 $ 9,881,404 $ 10,090,003 $ 10,509,726 $ 10,992,219 $ 11,729,471 $ 11,265,315 273,096 2.48% 53 General Fund General Government Administration Human Resources City Clerk Elections Financial Adminstration Information Systems Planning & Zoning Engineering Facility Management Total General Government Public Safety Fire Protection Protective Inspection Emergency Management Total Public Safety Public Works Streets & Highways Snow & Ice Street Signs Parks & Recreation Natural Resource Preservation Recycling Total Public Works Total General Fund CITY OF ANDOVER 2018 FTE Summary 2015 2016 2017 2018 2015 2016 2017 2018 Actual Actual Current Budget Actual Actual Current Budget Special Revenue Funds Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2015 & 2016 are based on actual hours charged to various departments. 54 EDA General 0.35 0.10 0.05 0.05 1.05 1.18 1.13 1.13 Community Center 3.10 3.16 3.16 3.22 0.03 0.03 0.03 0.03 LRRWMO 0.15 0.07 0.07 0.07 1.84 1.89 1.89 1.89 ROW Mgmt / Utility 0.20 0.08 0.08 0.08 0.10 0.10 0.15 0.15 3.80 3.41 3.36 3.42 1.91 1.97 1.94 1.94 0.91 0.91 0.91 0.91 Enterprise Funds 3.90 4.00 4.03 4.03 Water 4.39 4.87 4.58 4.57 4.20 4.40 4.48 4.48 Sewer 3.36 2.91 3.33 3.33 0.22 0.16 0.96 1.05 Storm Sewers 2.50 2.39 2.40 2.40 14.16 14.64 15.52 15.61 10.25 10.17 10.31 10.30 Internal Service Funds 3.10 3.21 3.20 3.21 Central Equipment 3.10 3.07 3.25 3.25 3.93 4.05 4.03 4.03 Risk Mgmt 0.10 0.10 0.10 0.10 0.05 0.05 0.05 0.05 3.20 3.17 3.35 3.35 7.08 7.31 7.28 7.29 5.34 5.68 4.94 5.15 Grand Total 57.00 57.43 58.34 58.50 1.98 2.23 2.75 2.55 1.70 1.42 1.51 1.51 8.77 8.58 8.37 8.38 - 0.03 0.03 0.02 0.72 0.79 0.92 0.92 18.51 18.73 18.52 18.53- 39.75 40.68 41.32 41.43 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2015 & 2016 are based on actual hours charged to various departments. 54 CITY OF ANDOVER 2018 Capital Improvement Plan Projects By Department - Use of Funds Community Center Park & Recreation - Projects ACC/YMCA Expansion $ 200,000 Annual Miscellaneous Projects $ 15,000 Replacement - Carpeting 12,000 Irrigation Projects - Small Parks 25,000 New - Inflatables 5,000 40,000 Replacement - Pickleball Inserts/Net System 5,000 222,000 Sanitary Sewer Lift Station Improvements 230,000 Emergency Management Replacement - One Ton Utility Truck #69 150,000 Emergency Operations Center Improvement 18,000 380,000 Replacement - Emergency Sirens 45,000 63,000 Storm Sewer Storm Sewer Improvements 60,000 Engineering Replacement - Tymco Street Sweeper #172 235,000 New Development Projects 160,000 295,000 Pedestrian Trail Maintenance 55,000 New Pedestrian Trail and Sidewalk Segments 587,000 Streets / Highways Pedestrian Trail Reconstruction 80,000 Annual Street Seal Coat Project 700,000 Pedestrian Curb Ramp Replacements 16,000 Annual Street Crack Seal Project 150,000 Replacement - Data Collector/Total Station 33,500 Annual Pavement Markings 40,000 931,500 Annual Curb Replacement 52,000 Municipal State Aid Routes / New & Reconstruct 900,000 Facility Management Annual Street Reconstruction 667,000 Annual Parking Lot Maintenance 130,000 Gravel Road Improvement 20,000 Public Works Relocation / Expansion 450,000 Replacement - Lazer Line Painter 8,500 Replacement - Carpet/Tile 10,000 Replacement - Hot Patch Box #08-180 75,000 590,000 2,612,500 Fire Water Replacement - Turnout Gear 20,000 Rehabilitation of Wells 50,000 Replacement - Grass #31 85,000 Replacement - 3/4 Ton Utility Truck #66 60,000 105,000 Replacement - Side by Side UTV #70 48,000 Water Main Improvements 664,000 Information Technology 822,000 Smartboard Addition 12,000 Shoretel Switch Replacement 10,000 Grand Total $ 6,378,000 22,000 Park & Recreation - Operations Replace/Repair Play Structures - Various Parks 50,000 Replace/Repair Major Park Projects - Various Parks 35,000 Replacement - One Ton Crew Cab Truck #599 80,000 New - Brush Cutter 15,000 Replacement - Bobcat Track Loader #610 60,000 Replacement - Small Extended Cab Truck #76 55,000 $ 295,000 55 Assessments Capital Equipment Reserve Community Center Operations Construction Seal Coating Fund G.O. Bond 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 2018 Capital Improvement Plan Sources of Funds 56 $ 932,500 828,500 22,000 10,000 650,000 115,000 824,500 40,000 1,636, 500 166,000 177,000 76,000 587,000 126,000 187,000 Total $ 6,378,000 CITY OF ANDOVER, MINNESOTA 2018 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 2018 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 $ 7,267,904 $ 7,796,745 $ 7,796,745 $ 7,065,746 8,217,768 625,907 733,951 912,219 88,600 68,380 194,812 10,841,637 8,420,354 367,705 766,150 773,950 100,750 75,000 124,300 10,628,209 8,422,354 465,375 827,706 770,050 90,150 75,000 150,907 10, 801,542 8,721,256 377,900 766,274 746,700 90,250 75,000 129,300 10,906,680 196,930 196,930 196,930 178,558_ 11,038,567 18,306,471 4,520,107 571,168 3,743,424 1,298,226 126,801 10,259,726 250,000 10,509,726 $ 7,796,745 Change in Fund Balance $ 528,841 7% 10,825,139 18,621,884 4,889,974 685,417 3,902,989 1,423,839 90,000 10,992,219 10,992,219 $ 7,629,665 $ (167,080) -2% 59 10,998,472 18,795,217 4,827,986 668,367 3,971,629 1,421,489 90,000 10,979,471 750,000 11,729,471 $ 7,065,746 $ (730,999) -9% 11,085,238 18,150,984_ 4,938,919 693,423 4,074,764 1,458,209 100,000 11,265,315 11,265,315 $ 6,885,669 $ (180,077) -3% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 $ 7,267,904 $ 7,796,745 $ 7,796,745 $ 7,065,746 8,217,768 625,907 733,951 912,219 88,600 68,380 194,812 10,841,637 8,420,354 367,705 766,150 773,950 100,750 75,000 124,300 10,628,209 8,422,354 465,375 827,706 770,050 90,150 75,000 150,907 10, 801,542 8,721,256 377,900 766,274 746,700 90,250 75,000 129,300 10,906,680 196,930 196,930 196,930 178,558_ 11,038,567 18,306,471 4,520,107 571,168 3,743,424 1,298,226 126,801 10,259,726 250,000 10,509,726 $ 7,796,745 Change in Fund Balance $ 528,841 7% 10,825,139 18,621,884 4,889,974 685,417 3,902,989 1,423,839 90,000 10,992,219 10,992,219 $ 7,629,665 $ (167,080) -2% 59 10,998,472 18,795,217 4,827,986 668,367 3,971,629 1,421,489 90,000 10,979,471 750,000 11,729,471 $ 7,065,746 $ (730,999) -9% 11,085,238 18,150,984_ 4,938,919 693,423 4,074,764 1,458,209 100,000 11,265,315 11,265,315 $ 6,885,669 $ (180,077) -3% 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 2017 and Budget 2018. Department: Mayor&Council Director/Manager: City Council Actual Current Budgeted Performance Measures 2016 2017 2018 Council Meetings 25 24 24 Special Workshops 17 15 17 Aqenda Items 459 480 480 Department: Mayor&Council Director/Manager: City Council Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 60 Current 2017 Current 2017 $ 44,925 32,287 2,779 10,000 89,991 Budgeted 2018 Budgeted 2018 $ 44,925 33,594 2,779 10,000 91,298 ®Personal Services ■Supplies & Materials 130ther Services / Charges OPurchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 0.22 $ 0.23 $ 0.23 $ 2.69 $ 2.76 $ 2.78 Actual Staffing Levels 2016 One Mayor and Four Council Members Actual Service Expenditures 2016 Personal Services $ 44,976 Supplies & Materials 30,916 Other Services / Charges 2,655 Purchased Services 8,442 TOTAL 86,989 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 60 Current 2017 Current 2017 $ 44,925 32,287 2,779 10,000 89,991 Budgeted 2018 Budgeted 2018 $ 44,925 33,594 2,779 10,000 91,298 ®Personal Services ■Supplies & Materials 130ther Services / Charges OPurchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 0.22 $ 0.23 $ 0.23 $ 2.69 $ 2.76 $ 2.78 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 No major changes for Budget 2018. Department: Administration Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 1.18 1.13 1.13 Actual Current Budgeted Performance Measures 2016 2017 2018 Regular Council Agenda Items 459 480 480 Council Workshops Attended 17 16 17 Council Meetings Attended 25 24 24 Staff Meetinqs Held 52 52 52 Department: Administration Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 1.18 1.13 1.13 ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 164,041 $ 172,373 $ 176,665 Supplies & Materials 7,015 9,950 9,950 Other Services / Charges 16,820 17,218 17,218 Purchased Services TOTAL $ 187,876 199,541 203,833 Service Expenditures By Category ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 61 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 0.48 $ 0.51 $ 0.52 Annual $ 5.81 $ 6.12 $ 6.20 ADOPTED 2018 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. Starting in late 2017, the newsletter is now assembled in-house and contracted out for printing and distribution 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 Actual Current Budgeted Newsletter setup, printing and postage costs are increasing slightly. 2017 2018 Actual Current Budgeted Performance Measures 2016 2017 2018 Number of Meetings Held 6 6 6 Newsletters Published 6 6 6 Department: Newsletter Director/Manager: Newsletter Coordinator Service Expenditures By Category Actual Public Circulation 12,820 12,931 13,050 Expenditures Per Capita 2016 Staff Preparation Hours 100 100 140 Population - Estimates 32,335 Monthly $ 0.06 Annual $ 0.70 ------------------------------------------------------------------------------ ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 62 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current 2017 32,600 $ 0.06 $ 0.75 Budgeted $ 0.07 $ 0.79 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials 11,775 13,000 14,000 Other Services / Charges - - - Purchased Services 10,956 11,500 12,000 TOTAL $ 22,731 24,500 26,000 Service Expenditures By Category Actual Public Circulation 12,820 12,931 13,050 Expenditures Per Capita 2016 Staff Preparation Hours 100 100 140 Population - Estimates 32,335 Monthly $ 0.06 Annual $ 0.70 ------------------------------------------------------------------------------ ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 62 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current 2017 32,600 $ 0.06 $ 0.75 Budgeted $ 0.07 $ 0.79 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 The Human Resources Manager is allocated out to various departments based on FTE's. Budget 2018 includes funding for any market rate adjustments that are approved by the City Council. As more employees become eligible for retirement, an increase in recruitment is expected. Actual Current Budgeted Performance Measures 2016 2017 2018 Workers Comp Mod Factor 0.67 0.71 0.74 Premium change in health insurance 3.00% 2.00% 0.00% Hours spent on labor relations 0 6 0 Hours spent on benefit administration 50 100 50 Emolovees hired (Seasonal/FT/PT) 42 37 50 Department: Human Resources Director/Manager: Human Resources Manager Actual Staffing Levels 2016 FTE Equivalents 0.03 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual --------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 63 Current 2017 0.03 Current 2017 $ 4,663 4,450 4,000 7,800 20,913 Budgeted 2018 0.03 Budgeted 2018 $ 4,777 4,304 4,100 15,250 28,431 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 0.03 $ 0.05 $ 0.07 $ 0.41 $ 0.64 $ 0.86 Actual Service Expenditures 2016 Personal Services $ 4,543 Supplies & Materials 3,342 Other Services / Charges 3,735 Purchased Services 1,784 TOTAL 13,404 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual --------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 63 Current 2017 0.03 Current 2017 $ 4,663 4,450 4,000 7,800 20,913 Budgeted 2018 0.03 Budgeted 2018 $ 4,777 4,304 4,100 15,250 28,431 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 0.03 $ 0.05 $ 0.07 $ 0.41 $ 0.64 $ 0.86 Fund: 0101 -General Department: Attorney Cost Center: 41240 Director/Manager: City Administrator Personal Services $ - $ - $ - 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 No increase planned for Budget 2018. Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents N/A N/A N/A o Personal Services oSupplies & Materials 0Other Services / Charges o Purchased Services Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 184,990 190,000 191,360 TOTAL 184,990 190,000 191,360 Service Expenditures By Catc2ory o Personal Services oSupplies & Materials 0Other Services / Charges o Purchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 64 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 0.48 $ 0.49 $ 0.48 Annual $ 5.72 $ 5.83 $ 5.82 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 64 Fund: 0101 -General Department: City Clerk Cost Center: 41300 Director/Manager: City Clerk Activitv Description The City Clerk's office prepares the agenda and materials for council meetings; is responsible for special assessments, elections, homestead filing; licensing of alcohol and tobacco, garbage haulers, dogs, peddlers, tree trimmers; signs all official papers; is the keeper of the official city records including resolutions, minutes, ordinances, etc. Assists residents by telephone, e-mail and in person. Process Used Activities are conducted pursuant to city ordinances, policies and state law. Service Expenditure Highlights In Budget 2018, the increase is due to a COLA. Actual Current Budgeted Performance Measures 2016 2017 2018 Council packets assembled & distributed 402 400 400 Licenses Issued 155 200 175 Service Expenditures By Categor i Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 65 ®Personal Services ■Supplies & Materials 130ther Services / Charges 13Purchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 0.38 $ 0.38 $ 0.39 $ 4.59 $ 4.56 $ 4.73 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 1.89 1.89 1.89 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 121,031 $ 120,412 $ 127,421 Supplies & Materials 1,480 2,110 2,110 Other Services / Charges 25,827 25,877 25,877 Purchased Services - 200 200 TOTAL 148,338 148,599 155,608 Service Expenditures By Categor i Exuenditures Per CaUita Population - Estimates Monthly Annual --------------------------------------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 65 ®Personal Services ■Supplies & Materials 130ther Services / Charges 13Purchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 0.38 $ 0.38 $ 0.39 $ 4.59 $ 4.56 $ 4.73 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 Current 2017 was a non -election year. Department: Elections Director/Manager: City Clerk Actual Current Budgeted Performance Measures 2016 2017 2018 Total number of voters 18,527 Non election 18,000 Number of Precincts 10 year 10 Registered voters 22,051 Supplies & Materials 22,000 Department: Elections Director/Manager: City Clerk Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimates 32,335 Monthly $ 0.17 Annual $ 1.99 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 66 Budgeted nA4 O U.IJ Budgeted 2018 $ 49,931 2,000 7,850 59,781 ®Personal Services ■Supplies & Materials ❑Other Services / Charges 13 Purchased Services Current Budgeted 2017 2018 32,600 32,900 $ 0.05 $ 0.15 $ 0.59 $ 1.82 Actual Current Staffing Levels 2016 2017 FTE Equivalents 0.10 0.15 Actual Current Service Expenditures 2016 2017 Personal Services $ 55,564 $ 12,000 Supplies & Materials 882 - Other Services / Charges - - Purchased Services 7,987 7,100 TOTAL 64,433 19,100 Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimates 32,335 Monthly $ 0.17 Annual $ 1.99 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 66 Budgeted nA4 O U.IJ Budgeted 2018 $ 49,931 2,000 7,850 59,781 ®Personal Services ■Supplies & Materials ❑Other Services / Charges 13 Purchased Services Current Budgeted 2017 2018 32,600 32,900 $ 0.05 $ 0.15 $ 0.59 $ 1.82 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 2018 except for Personal Services. A 3% cost of living adjustment and steps for newer employees. Performance Measures Vendor checks issued Actual 2016 3,266 Current 2017 2,804 Budgeted 2018 3,000 Payroll checks issued 364 362 360 Payroll checks - direct deposit 2,099 2,493 2,500 Number of delinquent accounts 608 638 600 Utility accounts - Storm Water 10,527 10,600 10,700 Utility accounts - Water 6,580 6,667 6,750 Utility accounts - Sewer 7,448 7,536 7,620 Utilitv accounts - Street Liahts 7.242 7.255 7.355 Staffing Levels FTE Equivalents Service Expenditures Personal Services Supplies & Materials Other Services / Charges Purchased Services TOTAL Actual 2016 1.97 Actual 2016 $ 203,786 5,725 19,957 23,095 $ 252,563 Service Expenditures By Category Current 2017 1.94 Current 2017 $ 212,833 7,850 20,696 26,750 268,129 Budgeted 2018 1.94 Budgeted 2018 $ 221,114 8,100 21,696 27,750 278,660 ®Personal Services -� ■Supplies & Materials oOther Services / Charges oPurchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 67 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 0.65 $ 0.69 $ 0.71 Annual $ 7.81 $ 8.22 $ 8.47 ADOPTED 2018 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 2016 2017 2018 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 Actual Current Budgeted Budget 2018 includes a slight increase in the contract with Anoka County for assessing services. Personal Services $ - $ - $ - Actual Current Budgeted Performance Measures 2016 2017 2018 Residential Parcels Assessed 10,308 10,418 10,500 Commercial Parcels Assessed 129 132 133 Apartments Assessed 21 22 22 Unimproved Parcels Assessed 674 614 600 Expenditures Per Capita Population - Estimates Monthly Annual ------------------------------------------------------------ ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 68 ®Personal Services ■Supplies & Materials 130ther Services / Charges oPurchased Services Actual Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 146,473 149,000 154,000 TOTAL 146,473 149,000 154,000 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ------------------------------------------------------------ ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 68 ®Personal Services ■Supplies & Materials 130ther Services / Charges oPurchased Services Actual Current 2016 2017 32,335 32,600 $ 0.38 $ 0.38 $ 4.53 $ 4.57 Budgeted $ 0.39 $ 4.68 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 2018. Performance Measures Number of PC's / Servers Actual Current Budgeted 2016 2017 2018 78 80 79 Number of Printers 28 28 25 Number of Phones Maintained 89 90 86 Department: Information Systems Director/Manager: City Administrator Actual Staffing Levels 2016 FTE Equivalents 0.91 Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimates 32,335 Monthly $ 0.39 Annual $ 4.68 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 69 Current 2017 0.91 Current 2017 $ 107,987 41,335 22,700 2,000 174,022 Budgeted 2018 0.91 Budgeted 2018 $ 110,777 41,620 26,200 2,000 180,597 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current InI7 ,JZ, tDuu $ 0.44 $ 5.34 Budgeted Inla oz, yUU $ 0.46 $ 5.49 Actual Service Expenditures 2016 Personal Services $ 104,788 Supplies & Materials 17,768 Other Services / Charges 25,487 Purchased Services 3,344 TOTAL $ 151,387 Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimates 32,335 Monthly $ 0.39 Annual $ 4.68 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 69 Current 2017 0.91 Current 2017 $ 107,987 41,335 22,700 2,000 174,022 Budgeted 2018 0.91 Budgeted 2018 $ 110,777 41,620 26,200 2,000 180,597 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Current InI7 ,JZ, tDuu $ 0.44 $ 5.34 Budgeted Inla oz, yUU $ 0.46 $ 5.49 Fund: 0101 -General Cost Center: 41500 Activitv Description Department: 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 2017 directed. Review planning and zoning requests and make recommendations in Current accordance with adopted regulations Staffing Levels Process Used 2017 The Planning Department processes development proposals, reviews plats, FTE Equivalents reviews commercial site plans and responds to citizens' requests for rezonings, 4.03 special use permits, comprehensive plan amendments and variances. The $ 14.17 Zoning Ordinance is the primary source of information. However, the Andover Current Review Committee and the City Attorney are also utilized before applications Service Expenditures are processed before the Planning and Zoning Commission and City Council. 2017 Service Expenditure Highlights Personal Services Budget 2018 Personal Services change is largely due to a change in benefits. $ 440,224 Actual Current Budgeted Performance Measures 2016 2017 2018 Subdivisions Processed 4 3 5 Commercial Site Plans Processed 3 3 2 Conditional Use Permits 1 6 2 Code Amendments 1 3 5 Comp Plan Amendments 0 1 1 Rezonings 0 1 2 Variances 0 5 2 Lot Splits 0 4 2 P&Z Agendas 8 12 12 Vac of Easements 8 1 2 IUP - Interim Use Permit 5 1 1 Abatements 12 5 5 Rental Licenses 254 286 295 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Department: Planning and Zoning Budgeted Director/Manager: Community Development Director 2017 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 4.00 4.03 4.03 $ 14.17 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 397,515 $ 440,224 $ 414,379 Supplies & Materials 4,750 6,700 9,160 Other Services / Charges 7,168 7,288 7,588 Purchased Services 4,708 7,700 7,700 TOTAL 414,141 461,912 438,827 Service Expenditures By Category ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 70 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 1.07 $ 1.18 $ 1.11 Annual $ 12.81 $ 14.17 $ 13.34 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 70 Fund: 0101 -General Department: Engineering Cost Center: 41600 Director/Manager: City Engineer 1. Number of Projects Constructed 11 12 12 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 2018 Personal Services change is largely due to a COLA and change in benefits 3. Number of Utilitv permits issued 67 75 70 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 4.40 4.48 4.48 Actual Current Budgeted Performance Measures 2016 2017 2018 1. Number of Projects Constructed 11 12 12 2. Number of Projects Reviewed: 12,242 19,200 19,200 Prelimary Plats 5 4 3 Commercial Site Plans 3 2 2 3. Number of Utilitv permits issued 67 75 70 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 4.40 4.48 4.48 Expenditures Per Capita _ Population - Estimates Monthly $ Annual $ ------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 71 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Actual Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 476,878 $ 489,942 $ 507,392 Supplies & Materials 12,242 19,200 19,200 Other Services / Charges 21,792 23,973 24,873 Purchased Services 162 2,300 2,300 TOTAL $ 511,074 535,415 553,765 Service Expenditures By Category Expenditures Per Capita _ Population - Estimates Monthly $ Annual $ ------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 71 ®Personal Services ■Supplies & Materials OOther Services / Charges ❑Purchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 1.32 $ 1.37 $ 1.40 15.81 $ 16.42 $ 16.83 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 Current 2017 includes the allocation of an FTE for building monitoring and maintenance. It also includes maintenance software for work orders and planned PM work. Actual Current Budgeted Performance Measures 2016 2017 2018 Buildings 18 18 18 Parking Lots 14 14 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 2016 2017 2018 $ 16,107 $ 97,285 $ 110,738 40,975 38,150 44,550 214,300 306,241 315,931 136,868 205,300 177,300 $ 408,250 646,976 648,519 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 72 Actual $ 1.05 $ 12.63 ® Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current 2017 32,600 $ 1.65 $ 19.85 Budgeted $ 1.64 $ 19.71 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 2018 includes a three percent contract increase with no change in service. Performance Measures Actual 2016 Current 2017 Budgeted 2018 Number of Part I & II Offenses 1,303 1,636 1,500 Number of Calls for Services 14,736 15,738 16,000 Number of Traffic Citations 1,614 1,472 1,500 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 2016 2017 2018 FTE Equivalents N/A N/A N/A ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 2,936,467 2,962,551 3,053,526 TOTAL $ 2,936,467 2,962,551 3,053,526 Service Expenditures By Category ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 73 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 7.57 $ 7.57 $ 7.73 Annual $ 90.81 $ 90.88 $ 92.81 ADOPTED 2018 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 2018 includes the purchase of turnout gear ($20k) and a decrease in State Fire Aid that is passed thru to the Relief Association ($56k). It also includes expanding the Duty Crew hours to not only cover the morning and afternoon commute times, but also a weekend crew. Performance Measures Fire Responses Actual 2016 378 Current 2017 350 Budgeted 2018 375 Emergency Medical Responses 594 500 525 Fire Inspections 71 65 100 Fire Investigations 14 10 12 Public Fire Education (hours) 233 400 1,500 Customer Contacts 3,400 5,000 8,500 Total Firefighter Training Hours 3,264 3,400 3,400 Average Response Time 8.0 min 7.13 min 7.0 min Department: Fire Protection Director/Manager: Fire Chief Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 74 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 3.31 $ 3.64 $ 3.61 $ 39.75 $ 43.66 $ 43.28 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 3.21 3.20 3.21 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 912,948 $ 1,046,078 $ 1,030,290 Supplies & Materials 134,994 119,850 118,850 Other Services / Charges 225,127 224,294 240,774 Purchased Services 12,348 33,000 34,000 TOTAL 1,285,417 1,423,222 1,423,914 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 74 ■Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2016 2017 2018 32,335 32,600 32,900 $ 3.31 $ 3.64 $ 3.61 $ 39.75 $ 43.66 $ 43.28 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 2016 and 2017 with more than 30% of all permits being process online and saving both the City and permit applicants time and money. Budget 2018 Purchased Services includes continual growth in electrical inspections. Actual Current Budgeted Performance Measures 2016 2017 2018 Townhomes 8 0 0 Department: Protective Inspection Director/Manager: Building Official Service Expenditures By Category Single Family Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 4.05 4.03 4.03 Other Permits Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 347,222 $ 367,219 $ 369,195 Supplies & Materials 9,494 16,050 18,050 Other Services / Charges 26,561 26,169 27,919 Purchased Services 40,970 37,000 47,000 TOTAL $ 424,247 446,438 462,164 Service Expenditures By Category Single Family 103 95 95 Miscellaneous Building Permits 527 635 500 Actual Other Permits 2,536 2,256 3,000 Expenditures Per Capita 2016 Inspections 3,562 2,785 3,500 Population - Estimates 32,335 Contractor Licenses 82 99 90 Monthly $ 1.09 Online Permits ------------------------------------------------------------------------------ 963 1,130 1,275 Annual $ 13.12 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 75 ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Current $ 1.14 $ 13.69 Budgeted $ 1.17 $ 14.05 Fund: 0101 -General Department: Emergency Management Cost Center: 42400 Director/Manager: Building Official Activitv Description Maintain City's emergency warning system. Repair, replace and maintain twelve (12) warning sirens throughout the city to ensure proper activation during storm, civil and emergency conditions. All sirens are visually checked every April to confirm sirens are operating properly. Process Used If a siren is found to be dysfunctional, a service call is placed, a repair -person comes out, necessary repairs are completed. The City replaced all sirens in 2002 and 2003 into battery back-up units. Siren warning tests are performed monthly to verify activation and educate citizens regarding the City's Emergency Warning System. Service Expenditure Highlights In Budget 2018, additional funds are planned for the Emergency Operations Center and battery backups. Actual Current Budgeted Performance Measures 2016 2017 2018 Siren tests throughout the severe weather season 4 4 4 State-wide siren tests Number of sirens 14 12 Service Expenditures By Category -- ®Personal Services ■Supplies & Materials e � []Other Services / Charges 13Purchased Services 14 14 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 0.05 0.05 0.05 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 6,156 $ 6,663 $ 6,818 Supplies & Materials 85 2,500 2,500 Other Services / Charges 7,930 8,684 8,684 Purchased Services 3,324 7,000 14,500 TOTAL 17,495 24,847 32,502 Service Expenditures By Category -- ®Personal Services ■Supplies & Materials e � []Other Services / Charges 13Purchased Services 14 14 Actual Current 12 12 Expenditures Per Capita 2016 2017 Population - Estimates 32,335 32,600 Monthly $ 0.05 $ 0.06 Annual $ 0.54 $ 0.76 ADOPTED 2018 ---------------------------------- BUDGET CITY OF ANDOVER, MINNESOTA 76 Budgeted $ 0.08 $ 0.99 Fund: 0101 -General Department: Animal Control Cost Center: 42500 Director/Manager: City Clerk 290 Number of animals confined 67 45 60 Activitv Description The enforcement of City Code Title 5 relating to dogs and cats. Process Used Letters are sent to dog and cat owners who allow their animals to run at large warning them that they are in violation of the City's ordinance. If the behavior continues, a ticket is issued by the Sheriff's office to the owner citing them for a misdemeanor. The City contracts with an independent contractor to provide animal control services. The City, in conjunction with a veterinarian, holds a rabies vaccination clinic every spring. City staff also issue licenses for dogs in the city. Service Expenditure Highlights No changes planned for Budget 2018. Actual Current Budgeted Performance Measures 2016 2017 2018 Number of dogs licensed 256 283 290 Number of animals confined 67 45 60 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents N/A N/A N/A Actual Expenditures Per Capita 2016 Population - Estimate 32,335 Monthly $ 0.01 Annual $ 0.11 ---------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 77 ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services Current 2017 32,600 $ 0.02 $ 0.18 Budgeted $ 0.02 $ 0.18 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials 95 150 150 Other Services / Charges 150 200 200 Purchased Services 3,455 5,600 5,600 TOTAL 3,700 5,950 5,950 Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimate 32,335 Monthly $ 0.01 Annual $ 0.11 ---------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 77 ®Personal Services ■Supplies & Materials oOther Services / Charges oPurchased Services Current 2017 32,600 $ 0.02 $ 0.18 Budgeted $ 0.02 $ 0.18 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 165 180 Current 2017 included the reallocation of a position to Facility Maintenance and Budget 2018 includes steps, COLA and benefit changes. 410 Gravel Usage (tons) Actual Current Budgeted Performance Measures 2016 2017 2018 Asphalt Streets Maintained (miles) 204 206 206 Gravel Roads Maintained (miles) 5.5 5.5 5.5 Cul-de-sacs & Deadends Maintained 348 350 350 Road Markings/Striping (intersections) 165 180 180 Street Sweeping (miles) 400 410 410 Gravel Usage (tons) 1,200 1,900 2,000 Asphalt Usage (tons) 609 578 600 Spray Patcher - Rock (tons) 350 200 200 Sorav Patcher - Oil (aallons) 3.000 1.250 2.000 Department: Streets & Highways Director/Manager: Street Supervisor Actual Staffing Levels 2016 FTE Equivalents 5.68 Service Expenditures By Category P P19FIN IML I _4 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 78 Current 2017 4.94 Current 2017 $ 415,529 66,050 90,989 42,100 614,668 Budgeted 2018 5.15 Budgeted 2018 $ 450,304 69,050 93,489 47,100 659,943 ®Personal Services ■Supplies & Materials oOther Services / Charges 0Purchased Services Actual Actual Service Expenditures 2016 Personal Services $ 484,172 Supplies & Materials 73,497 Other Services / Charges 94,902 Purchased Services 33,515 TOTAL $ 686,086 Service Expenditures By Category P P19FIN IML I _4 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 78 Current 2017 4.94 Current 2017 $ 415,529 66,050 90,989 42,100 614,668 Budgeted 2018 5.15 Budgeted 2018 $ 450,304 69,050 93,489 47,100 659,943 ®Personal Services ■Supplies & Materials oOther Services / Charges 0Purchased Services Actual Current 2016 2017 32,335 32,600 $ 1.77 $ 1.57 $ 21.22 $ 18.85 Budgeted 2018 32,900 $ 1.67 $ 20.06 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 2018 is due to the increase in personnel. Street Supervisor Actual Current Budgeted Performance Measures 2016 2017 2018 Miles of streets plowed 204 206 206 Cul-de-sacs 348 350 350 Sand/Salt Usage (tons) 1,814 1,650 2,000 Brine Usage (gal) 5,000 5,000 5,000 Snow events 23 28 25 Service Expenditures By Category _�- - - ----`s ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 79 Actual $ 1.21 $ 14.48 Current 2017 32,600 $ 1.40 $ 16.80 Budgeted $ 1.43 $ 17.10 Department: Snow & Ice Director/Manager: Street Supervisor Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 2.23 2.75 2.55 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 194,062 $ 250,746 $ 265,675 Supplies & Materials 116,574 143,100 143,100 Other Services / Charges 157,537 152,931 152,931 Purchased Services - 1,000 1,000 TOTAL $ 468,173 547,777 562,706 Service Expenditures By Category _�- - - ----`s ®Personal Services ■Supplies & Materials OOther Services / Charges OPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 79 Actual $ 1.21 $ 14.48 Current 2017 32,600 $ 1.40 $ 16.80 Budgeted $ 1.43 $ 17.10 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 2018 as compared to Current 2017. Performance Measures Sign Compliant Upgrades (# of zones) Actual 2016 1 Current 2017 1 Budgeted 2018 1 Damaged/Repair/Replace (# of signs) 75 50 50 Upgrade Street Signs (6" to 9" signs) 125 330 300 All Parks and Trail Signs 12 30 30 Traffic Counts (locations) 52 0 52 Sign Inventory / ID'ed (# of zones) 1 1 1 Speed Limit Siqns (35mph) 20 20 20 Department: Street Signs Director/Manager: Street Supervisor Actual Current Staffing Levels 2016 2017 FTE Equivalents 1.42 1.51 Budgeted 2018 1.51 Budgeted 2018 $ 157,740 45,360 14,818 1,500 219,418 - ®Personal Services d1t ■Supplies & Materials OOther Services / Charges oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 80 Actual 2016 32,335 $ 0.43 $ 5.17 Current 2017 32,600 $ 0.55 $ 6.60 Budgeted 2018 32,900 $ 0.56 $ 6.67 Actual Current Service Expenditures 2016 2017 Personal Services $ 140,776 $ 153,566 Supplies & Materials 12,342 45,360 Other Services / Charges 14,164 14,818 Purchased Services - 1,500 TOTAL 167,282 215,244 Service Expenditure By Category Budgeted 2018 1.51 Budgeted 2018 $ 157,740 45,360 14,818 1,500 219,418 - ®Personal Services d1t ■Supplies & Materials OOther Services / Charges oPurchased Services Expenditures Per Capita Population - Estimates Monthly Annual -------------------------------------- ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 80 Actual 2016 32,335 $ 0.43 $ 5.17 Current 2017 32,600 $ 0.55 $ 6.60 Budgeted 2018 32,900 $ 0.56 $ 6.67 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 for some aspects of the signal. 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 Anoka County Highway Department maintains all the traffic signals and EVP systems on their hightway system 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 2016 2017 2018 FTE Equivalents N/A N/A N/A Actual Current Budgeted Performance Measures 2016 2017 2018 Traffic Signals: 22,065 Purchased Services 5,854 Within the Community 18 19 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 2016 2017 2018 FTE Equivalents N/A N/A N/A Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 81 Actual In4a 3L, 335 $ 0.07 $ 0.86 Current ')n17 �p - Budgeted 1)n1n 27,000 27,000 10,000 10,000 37,000 37,000 ®Personal Services ■Supplies &Materials OOther Services / Charges oPurchased Services Current 2017 32,600 $ 0.09 $ 1.13 Budgeted Inla 3L,yUU $ 0.09 $ 1.12 Actual Service Expenditures 2016 Personal Services $ - Supplies & Materials - Other Services / Charges 22,065 Purchased Services 5,854 TOTAL $ 27,919 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 81 Actual In4a 3L, 335 $ 0.07 $ 0.86 Current ')n17 �p - Budgeted 1)n1n 27,000 27,000 10,000 10,000 37,000 37,000 ®Personal Services ■Supplies &Materials OOther Services / Charges oPurchased Services Current 2017 32,600 $ 0.09 $ 1.13 Budgeted Inla 3L,yUU $ 0.09 $ 1.12 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 213 Current 2017 255 Budgeted Mail] Department: Street Lighting Director/Manager: City Engineer Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 82 Actual $ 0.10 $ 1.15 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services Current 2017 32,600 $ 0.10 $ 1.18 Budgeted $ 0.10 $ 1.23 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 37,089 38,000 40,000 Purchased Services - 400 400 TOTAL $ 37,089 38,400 40,400 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 82 Actual $ 0.10 $ 1.15 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services Current 2017 32,600 $ 0.10 $ 1.18 Budgeted $ 0.10 $ 1.23 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 2016 2017 2018 Number of Street Liahts Billed 1.260 1.268 1.280 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 2016 2017 2018 175,529 187,500 187,500 24,980 30,000 33,000 $ 200,509 217,500 220,500 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 83 Actual $ 0.52 $ 6.20 Is Personal Services ■Supplies & Materials OOther Services & Charges OPurchased Services Current Budgeted $ 0.56 $ 0.56 $ 6.67 $ 6.70 Fund: 0101 -General Cost Center: 45000 Activitv Description The Parks Department maintains the entire City park and trail system. Most of the upgrades and additional developments of the parks are also done by the parks staff. Maintenance tasks include playground and play structures, ball infields, ice rinks, buildings and shelters, landscaping, trees and plantings, irrigation systems, painting, blacktop repair, trash and litter control, various construction projects, wood and metal fabrication, lighting and electrical, trail sign installs, and all turf and seed upkeep. Process Used The top priority for the Parks Department is to provide a safe product or facility for all the public to use. Provide diverse activities for all groups and associations through the use of city parks and/or trail systems. Service Expenditure Highlights Budget 2018 includes any employee change in health insurance, a COLA adjustment and any step changes for newer employees. Actual 2016 was the first year that included $90k for park infrastructure replacements like playground structures, fencing, and parking lots. It has been raised to $100,000 for Budget 2018. Number of playgrounds 41 41 42 Total soccer fields maintained 18 18 20 Miles of trail maintained 34 35 37 Ice Rinks/ Warminq Houses 12/4 12/4 12/4 Department: Parks & Recreation Director/Manager: Parks Maintenance Supervisor Actual Current Budgeted Performance Measures 2016 2017 2018 Number of City Parks maintained 53 53 53 Total acreage mowed 332 332 336 Ballfields maintained 27 27 27 Number of playgrounds 41 41 42 Total soccer fields maintained 18 18 20 Miles of trail maintained 34 35 37 Ice Rinks/ Warminq Houses 12/4 12/4 12/4 Department: Parks & Recreation Director/Manager: Parks Maintenance Supervisor ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 84 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 8.58 8.37 8.39 32,335 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 800,542 $ 812,849 $ 823,214 Supplies & Materials 80,641 89,900 97,400 Other Services / Charges 194,823 216,281 214,781 Purchased Services 44,694 64,500 62,000 Capital Outlay 126,801 90,000 100,000 TOTAL 1,247,501 1,273,530 1,297,395 Service Expenditures By Category ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services ®Capital Outlay ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 84 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 3.22 $ 3.26 $ 3.29 Annual $ 38.58 $ 39.07 $ 39.43 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 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 and help provide a natural environment for residents to enjoy. Process Used Staff will review the applicable properties on an annual basis and prioritize them for management based on needs. Service Expenditure Highlights Land management services provided by staff and contractors. Department: Natural Resource Preservation Director/Manager: City Engineer Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 0.03 0.03 0.03 Actual Current Budgeted Performance Measures 2016 2017 2018 Number of City Open Space parcels 4 4 4 Number of City Parks undeveloped 4 4 4 Total acreaae manacled 250 250 250 Department: Natural Resource Preservation Director/Manager: City Engineer Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 0.03 0.03 0.03 ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 50 $ 2,727 $ 1,604 Supplies & Materials 1,000 2,500 2,500 Other Services / Charges - 970 970 Purchased Services 6,205 6,500 6,500 TOTAL 7,255 12,697 11,574 Service Expenditures By Category ®Personal Services ■Supplies & Materials []Other Services / Charges []Purchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 85 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 0.02 $ 0.03 $ 0.03 Annual $ 0.22 $ 0.39 $ 0.35 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 85 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 2017 had an increase in prices for collection and disposal of electronics. Also, more items are getting recycled like mattresses, bikes, propane tanks, etc. FTE allocations have increase due to weekly inspections and cleanups. Department: Recycling Director/Manager: Recycling Coordinator Actual Current Budgeted Performance Measures 2016 2017 2018 Schools with recycling bins 6 6 6 Recycling Days 12 12 12 Recvclina collection tonnaae 2.500 3.000 3.200 Department: Recycling Director/Manager: Recycling Coordinator Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimates 32,335 Monthly $ 0.32 Annual $ 3.86 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 86 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services Current Budgeted $ 0.41 $ 4.95 $ 0.40 $ 4.78 Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 0.79 0.92 0.92 Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 44,950 $ 69,965 $ 65,960 Supplies & Materials 5,576 7,875 7,875 Other Services / Charges 4,608 2,881 2,881 Purchased Services 69,726 80,500 80,500 TOTAL 124,860 161,221 157,216 Service Expenditures By Category Actual Expenditures Per Capita 2016 Population - Estimates 32,335 Monthly $ 0.32 Annual $ 3.86 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 86 ®Personal Services ■Supplies & Materials 00ther Services / Charges oPurchased Services Current Budgeted $ 0.41 $ 4.95 $ 0.40 $ 4.78 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 2016 and Current 2017 included transfers to the Trail Capital Projects Fund for the construction of some trail segments. Current 2017 also included a transfer to the Capital Equipment Reserve Capital Projects Fund for the initial cost of the Public Works expansion and the Community Center exploration projects. Service Expenditures By Catcgor o Personal Services oSupplies & Materials •Other Services / Charges • Purchased Services •Other Uses Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents N/A N/A N/A Monthly Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 33,077 70,328 70,428 Purchased Services - - - Other Uses 250,000 750,000 - TOTAL 283,077 820,328 70,428 Service Expenditures By Catcgor o Personal Services oSupplies & Materials •Other Services / Charges • Purchased Services •Other Uses ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 87 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 0.73 $ 2.10 $ 0.18 Annual $ 8.75 $ 25.16 $ 2.14 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 87 This page left blank intentionally. 88 CITY OF ANDOVER, MINNESOTA 2018 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 2018 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 $ 669,442 $ 736,826 $ 736,826 $ 705,492 40,106 Actual 1 Adopted Estimate 1 Adopted Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In $ 669,442 $ 736,826 $ 736,826 $ 705,492 40,106 40,000 40,000 40,000 - 37,500 - 37,500 701,722 687,200 699,000 693,900 10,949 5,800 5,700 6,050 830,773 796,500 795,000 799,568 1,583,550 1,567,000 1,539,700 1,577,018 Total Revenues and Other Sources: 1,583,550 1,567,000 1,539,700 1,577,018 Total Available: 2,252,992 2,303,826 2,276,526 2,282,510 Expenditures Personal Services 488,400 515,791 515,791 546,795 Supplies and Materials 84,081 89,020 80,720 87,020 Purchased Services 201,533 240,680 185,424 233,294 Other Services and Charges 387,493 469,929 418,099 462,529 Capital Outlay 47,859 66,000 66,000 22,000 Total Expenditures: 1,209,366 1,381,420 1,266,034 1,351,638 Other Uses Transfers Out 306,800 305,000 305,000 305,300 Total Expenditures and Other Uses: 1,516,166 1,686,420 1,571,034 1,656,938 Fund Balance, December 31 $ 736,826 $ 617,406 $ 705,492 $ 625,572 Change in Fund Balance $ 67,384 $ (119,420) $ (31,334) $ (79,920) 10% -16% -4% -11% 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: $ 334,451 $ 312,000 $ 312,000 $ 263,922 9,181 3,860 1,478 14,519 10,000 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: $ 334,451 $ 312,000 $ 312,000 $ 263,922 9,181 3,860 1,478 14,519 10,000 8,000 8,000 3,000 3,000 3,000 13,000 11,000 11,000 14,519 13,000 348,970 325,000 Expenditures Personal Services 17,739 14,578 Supplies and Materials 3,419 18,900 Purchased Services 7,718 79,000 Other Services and Charges 8,094 13,850 Total Expenditures: 36,970 126,328 Other Uses Transfers Out - - Total Expenditures and Other Uses: 36,970 126,328 Fund Balance, December 31 $ 312,000 $ 198,672 Change in Fund Balance $ (22,451) $ (113,328) -7% -36% 92 11,000 323,000 14,578 13,900 19,000 11,600 59,078 59,078 $ 263,922 $ (48,078) -15% 11,000 274;922 14,302 18,900 63,200 13,850 110,252 110,252 $ 164,670 $ (99,252) -38% Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Hi2hli2hts 2017 & 2018 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 2018 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 2016 2017 2017 2018 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 2018, 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 2018 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 $ 56,140 $ 136,459 $ 136,459 $ 177,287 649,726 632,200 2,190 - 776,855 775,000 1,428,771 1,407,200 1,428,771 1,407,200 1,484,911 1,543, 659 451,332 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 $ 56,140 $ 136,459 $ 136,459 $ 177,287 649,726 632,200 2,190 - 776,855 775,000 1,428,771 1,407,200 1,428,771 1,407,200 1,484,911 1,543, 659 451,332 481,368 77,945 59,300 106,381 89,000 364,935 406,479 47,859 66,000 1,048,452 1,102,147 300,000 300,000 1,348,452 1,402,147 $ 136,459 $ 141,512 Change in Fund Balance $ 80,319 $ 5,053 143% 4% M 646,000 755,000 1,401,000 1,401,000 1,537,459 481,368 60,000 70,000 382,804 66,000 1,060,172 300,000 1,360,172 $ 177,287 $ 40,828 30% 647,900 778,068 1,425, 968 1,425, 968 1,603,255 511,630 61,300 92,500 406,079 22,000 1,093,509 300;000 1,393,509 $ 209,746 $ 32,459 18% 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 2017 is $60,000 to seal coat the parking lot and $6,000 for painting the entrances. 2018 includes carpet replacement ($12,000), inflatables ($5,000) and a pickleball net system ($5,000). 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 2018 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: $ 144,771 $ 141,026 $ 141,026 $ 131,026 9,804 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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: $ 144,771 $ 141,026 $ 141,026 $ 131,026 9,804 8,000 8,000 8,000 1,786 1,200 1,200 1,200 11,590 9,200 9,200 9,200 11,590 9,200 9,200 9,200 156,361 150,226 150,226 140,226 2,706 3,300 3,300 3,300 6,983 9,700 9,700 13,500 5,646 7,000 6,200 7,000 15,335 20,000 19,200 23,800 15,335 20,000 Fund Balance, December 31 $ 141,026 $ 130,226 Change in Fund Balance $ (3,745) $ (10,800) -3% -8% 98 19,200 $ 131,026 $ (10,000) -7% 23,800 $ 116,426 $ (14,600) -11% 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 2018 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 $ 1,385 $ 9,845 $ 9,845 $ 26,760 Revenues General Property Taxes Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 Fund Balance, January 1 $ 1,385 $ 9,845 $ 9,845 $ 26,760 Revenues General Property Taxes 40,106 40,000 40,000 40,000 Investment Income (121) 100 100 100 Total Revenues: 39,985 40,100 40,100 40,100 Other Sources Transfers In - - - - Total Revenues and Other Sources: 39,985 40,100 40,100 40,100 Total Available: 41,370 49,945 49,945 66,860 Expenditures Personal Services 9,288 9,720 9,720 10,230 Supplies and Materials 11 520 520 520 Purchased Services 22,061 12,780 12,780 12,894 Other Services and Charges 165 200 165 200 Total Expenditures: 31,525 23,220 23,185 23,844 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 31,525 23,220 23,185 23,844 Fund Balance, December 31 $ 9,845 $ 26,725 $ 26,760 $ 43,016 Change in Fund Balance $ 8,460 $ 16,880 $ 16,915 $ 16,256 611% 171% 172% 61% we Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Exucnditurc Hi2hh2hts Minimal changes are planned for this fund. 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 2018 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 $ 6,831 $ 6,921 $ 6,921 $ 4,521 - 12,500 90 100 - 6,500 - 12,500 100 100 - 6,500 Total Revenues: Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues Intergovernmental Investment Income Miscellaneous $ 6,831 $ 6,921 $ 6,921 $ 4,521 - 12,500 90 100 - 6,500 - 12,500 100 100 - 6,500 Total Revenues: 90 19,100 100 19,100 Other Sources Transfers In - - - - Total Revenues and Other Sources: 90 19,100 100 19,100 Total Available: 6,921 26,021 7,021 23,621 Expenditures Supplies and Materials - 6,500 2,500 2,500 Purchased Services - 12,500 - 12,500 Total Expenditures: - 19,000 2,500 15,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: - 19,000 2,500 15,000 Fund Balance, December 31 $ 6,921 $ 7,021 $ 4,521 $ 8,621 Change in Fund Balance $ 90 $ 100 $ (2,400) $ 4,100 1 % 1 % -35% 91% 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 2018. 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 2018 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 $ 47,909 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 $ 47,909 $ 46,097 $ 46,097 $ 39,542 Change in Fund Balance $ (1,812) $ (6,925) $ (6,555) $ 24,716 20,000 20,000 20,000 421 500 400 500 25,137 20,500 20,400 20,500 20,500 25,137 20,400 20,500 73,046 66,597 66,497 60,042 10,041 10,125 10,125 10,633 - 500 500 500 9,778 11,400 11,000 12,400 330 400 330 400 20,149 22,425 21,955 23,933 6,800 5,000 5,000 5,300 26,949 27,425 26,955 29,233 Fund Balance, December 31 $ 46,097 $ 39,172 $ 39,542 $ 30,809 Change in Fund Balance $ (1,812) $ (6,925) $ (6,555) $ (8,733) -4% -15% -14% -22% 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 2018 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 $ 74,742 $ 79,530 $ 79,530 $ 56,986 960 400 52,440 15,000 53,400 15,400 53,400 15,400 400 40,000 40,400 40,400 400 15,000 15,400 15,400 128,142 94,930 119,930 72,386 48,612 26,300 Total Expenditures and Other Uses: 48,612 26,300 Fund Balance, December 31 $ 79,530 $ 68,630 Change in Fund Balance $ 4,788 $ (10,900) 6% -14% 62,944 62,944 $ 56,986 $ (22,544) -28% 26,300 26,300 $ 46,086 $ (10,900) -19% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 $ 74,742 $ 79,530 $ 79,530 $ 56,986 960 400 52,440 15,000 53,400 15,400 53,400 15,400 400 40,000 40,400 40,400 400 15,000 15,400 15,400 128,142 94,930 119,930 72,386 48,612 26,300 Total Expenditures and Other Uses: 48,612 26,300 Fund Balance, December 31 $ 79,530 $ 68,630 Change in Fund Balance $ 4,788 $ (10,900) 6% -14% 62,944 62,944 $ 56,986 $ (22,544) -28% 26,300 26,300 $ 46,086 $ (10,900) -19% 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 are 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 2018 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 $ 3,213 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 $ 3,213 $ 4,948 $ 4,948 $ 5,448 Fund Balance, December 31 $ 4,948 $ 5,448 $ 5,448 $ 8,295 17,000 17,000 10,000 1,763 500 500 750 10,058 17,500 17,500 10,750 17,500 10,058 17,500 10,750 13,271 22,448 22,448 16,198 8,323 17,000 17,000 10,000 Total Expenditures and Other Uses: 8,323 17,000 17,000 10,000 Fund Balance, December 31 $ 4,948 $ 5,448 $ 5,448 $ 6,198 Change in Fund Balance $ 1,735 $ 500 $ 500 $ 750 54% 10% 10% 14% 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 109 This page left blank intentionally. 110 CITY OF ANDOVER, MINNESOTA 2018 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. In This page left blank intentionally. 112 City of Andover Debt Service Funds 2018 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 $ 1,217,300 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 $ 1,217,300 $ 1,317,487 $ 1,317,487 $ 951,895 444,144 418,419 2,099,582 1,610,047 1,610,047 1,599,087 (2,363) - (5,000) - 2, 097,219 1,610, 047 1,605,047 1,599, 087 311,417 300,000 300,000 3005000 2,269,238 2,270,639 2,408,636 1,910, 047 1,905,047 1,899, 087 3,625,936 3,227,534 3,222,534 2,850,982 1,770,000 1,800,000 1,800,000 1,416,000 444,144 418,419 418,419 385,555 1,325 2,000 1,375 2,000 2,215,469 2,220,419 2,219,794 1,803,555 92,980 48,819 50,845 - 2,308,449 2,269,238 2,270,639 1,803,555 Fund Balance, December 31 $ 1,317,487 $ 958,296 $ 951,895 $ 1,047,427 Change in Fund Balance $ 100,187 $ (359,191) $ (365,592) $ 95,532 8% -27% -28% 10% 113 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 $ Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 Fund Balance, January 1 $ 506,434 $ 591,195 $ 591,195 $ - Revenues General Property Taxes 143,134 - - - Investment Income 3,277 - - - Total Revenues: 146,411 - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 146,411 - - - Total Available: 652,845 591,195 591,195 - Expenditures Debt Service Principal 50,000 535,000 535,000 - Interest 11,200 5,350 5,350 - Other 450 500 - - Total Expenditures: 61,650 540,850 540,350 - Other Uses Operating Transfers Out - 48,819 50,845 - Total Expenditures and Other Uses: 61,650 589,669 591,195 - Fund Balance, December 31 $ 591,195 $ 1,526 $ - $ - Change in Fund Balance $ 84,761 $ (589,669) $ (591,195) $ - 17% -100% -100% n/a 114 Fund: 3211 Cost Center: 2012A G.O. Equipment Certificates Activity Type/Code: Debt Service This fund will be closed in 2017. Department Head: Finance Director 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 2018 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 2016 2017 2017 2018 Fund Balance, January 1 $ 303,366 $ 317,509 $ 317,509 $ 333,469 Revenues General Property Taxes 295,986 295,260 295,260 294,945 Investment Income 1,507 - - - Total Revenues: 297,493 295,260 295,260 294,945 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 297,493 295,260 295,260 294,945 Total Available: 600,859 612,769 612,769 628,414 Expenditures Debt Service Principal 260,000 260,000 260,000 265,000 Interest 23,350 18,800 18,800 13,550 Other - 500 500 500 Total Expenditures: 283,350 279,300 279,300 279,050 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 283,350 279,300 279,300 279,050 Fund Balance, December 31 $ 317,509 $ 333,469 $ 333,469 $ 349,364 Change in Fund Balance $ 14,143 $ 15,960 $ 15,960 $ 15,895 5% 5% 5% 5% Fund: 3212 Cost Center: 2014A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code: Debt Service General Activitv Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2018 $ 278,550 $ 265,000 $ 13,550 2019 278,200 270,000 8,200 2020 277,750 275,000 2,750 $ 834,500 $ 810,000 $ 24,500 Process Used The City issued $1,355,000 of Capital Notes in 2014 to facilitate the purchase of equipment. ADOPTED 2018 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 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 82 $ 5,022 $ 5,022 $ 147,671 152,529 152,529 143,310 82 152, 529 152,529 143,310 9,386 - 9,468 152,529 9,468 157,551 152,529 157,551 143,310 290,981 - - - 126,000 4,446 9,880 9,880 8,683 - - - 500 4,446 9,880 9,880 135,183 Operating Transfers Out - - Total Expenditures and Other Uses: 4,446 9,880 Fund Balance, December 31 $ 5,022 $ 147,671 Change in Fund Balance $ 5,022 $ 142,649 n/a 2840% 118 9,880 $ 147,671 $ 142,649 2840% 135,183 $ 155,798 $ 8,127 6% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 82 $ 5,022 $ 5,022 $ 147,671 152,529 152,529 143,310 82 152, 529 152,529 143,310 9,386 - 9,468 152,529 9,468 157,551 152,529 157,551 143,310 290,981 - - - 126,000 4,446 9,880 9,880 8,683 - - - 500 4,446 9,880 9,880 135,183 Operating Transfers Out - - Total Expenditures and Other Uses: 4,446 9,880 Fund Balance, December 31 $ 5,022 $ 147,671 Change in Fund Balance $ 5,022 $ 142,649 n/a 2840% 118 9,880 $ 147,671 $ 142,649 2840% 135,183 $ 155,798 $ 8,127 6% Fund: 3213 Cost Center: ?n1sn rr n Fniiinm• Department Head: Finance Director Activity Type/Code: Debt Service General Activitv Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 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 $ 540,007 $ 520,000 $ 20,007 Process Used The City issued $520,000 of Capital Notes in 2016 to facilitate the purchase of equipment. ADOPTED 2018 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 2016 2017 2017 2018 Fund Balance, January 1 $ 76,564 Revenues General Property Taxes 494,146 - - - Investment Income (3,030) - - - Total Revenues: 491,116 - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 491,116 - - - Total Available: 567,680 - - - Expenditures Debt Service Principal 470,000 - - - Interest 4,700 - - - Other - - - - Total Expenditures: 474,700 - - - Other Uses Operating Transfers Out 92,980 - - - Total Expenditures and Other Uses: 567,680 - - - Fund Balance, December 31 $ - $ Change in Fund Balance $ (76,564) $- -100% n/a n/a n/a 120 Fund: 3303 Cost Center: 2012B G.O. Capital Improvement Refunding Bonds Activity Type/Code: Debt Service This fund was 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 2018 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 2016 2017 2017 2018 Fund Balance, January 1 $ 115,802 $ 172,284 $ 172,284 $ 227,546 Revenues General Property Taxes 979,038 974,418 974,418 972,055 Investment Income (5,625) - (5,000) - Total Revenues: 973,413 974,418 969,418 972,055 Other Sources Operating Transfers In 300,000 300,000 300,000 3005000 Total Revenues and Other Sources: 1,273,413 1,274,418 1,269,418 1,272,055 Total Available: 1,389,215 1,446,702 1,441,702 1,499,601 Expenditures Debt Service Principal 845,000 855,000 855,000 870,000 Interest 371,506 358,731 358,731 341,481 Other 425 500 425 500 Total Expenditures: 1,216,931 1,214,231 1,214,156 1,211,981 Other Uses Operating Transfers Out - - - - Fund Balance, December 31 $ 172,284 $ 232,471 $ 227,546 $ 287,620 Change in Fund Balance $ 56,482 $ 60,187 $ 55,262 $ 60,074 49% 35% 32% 26% 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 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Amni int $ 1,211,481 1,208,932 1,215,982 1,212,632 1,213,932 1,209,282 1,213,000 1,209,356 1,208,275 1,205,250 1,205,147 1,212,675 1,213,400 1,218,000 $16,957,344 Principal $ 870,000 885,000 910,000 925,000 945,000 960,000 985,000 1,005,000 1,030,000 1,055,000 1,085,000 1,125,000 1,160,000 1,200,000 $14,140,000 Intaract $ 341,481 323,932 305,982 287,632 268,932 249,282 228,000 204,356 178,275 150,250 120,147 87,675 53,400 18,000 $ 2,817,344 Gcncral 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 123 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 2016 2017 2017 2018 Fund Balance, January 1 $ 215,134 $ 231,477 $ 231,477 $ 243,209 Revenues General Property Taxes 187,278 187,840 187,840 188,777 Investment Income 1,426 - - - Total Revenues: 188,704 187,840 187,840 188,777 Other Sources Operating Transfers In 2,031 - - - Total Revenues and Other Sources: 190,735 187,840 187,840 188,777 Total Available: 405,869 419,317 419,317 431,986 Expenditures Debt Service Principal 145,000 150,000 150,000 155,000 Interest 28,942 25,658 25,658 21,841 Other 450 500 450 500 Total Expenditures: 174,392 176,158 176,108 177,341 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 174,392 176,158 176,108 177,341 Fund Balance, December 31 $ 231,477 $ 243,159 $ 243,209 $ 254,645 Change in Fund Balance $ 16,343 $ 11,682 $ 11,732 $ 11,436 8% 5% 5% 5% 124 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 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 $ 872,701 $ 810,000 $ 62,701 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 125 This page left blank intentionally. 126 CITY OF ANDOVER, MINNESOTA 2018 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. 127 This page left blank intentionally. 128 City of Andover Capital Projects Funds 2018 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 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 $ 22,165,776 $ 23,359,026 $ 23,359,026 $ 23,281,066 1,451,896 91,808 818,065 830,897 312,148 997,340 730,940 5,233,094 749,780 520,000 25,693 1,295,473 6,528,567 28,694,343 2,519,865 2,522,220 196,719 5,238,804 96,513 5,335,317 $ 23,359,026 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 28,412,564 3,977,470 3,124,800 196,719 7,298,989 54,228 7,353,217 $ 21,059,347 1,944,154 85,000 845,069 2,073,460 162,600 469,559 55,315 5,635,157 1,205,845 1,205,845 6,841,002 30,200,028 4,028,000 2,640,015 196,719 6,864,734 54,228 6,918,962 $ 23,281,066 2,134,014 85,000 402,400 430,899 158,000 182,324 3,392,637 428,800 428,800 3,821,437 27,102,503 3,243,500 3,604,500 196,719 7,044,719 114,850 7,159,569 $ 19,942,934 Change in Fund Balance $ 1,193,250 $ (2,299,679) $ (77,960) $ (3,338,132) 5% -10% 0% -14% 129 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 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 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 $ 22,165,776 $ 23,359,026 $ 23,359,026 $ 23,281,066 1,451,896 91,808 818,065 830,897 312,148 997,340 730,940 5,233,094 749,780 520,000 25,693 1,295,473 6,528,567 28,694,343 2,519,865 2,522,220 196,719 5,238,804 96,513 5,335,317 $ 23,359,026 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 28,412,564 3,977,470 3,124,800 196,719 7,298,989 54,228 7,353,217 $ 21,059,347 1,944,154 85,000 845,069 2,073,460 162,600 469,559 55,315 5,635,157 1,205,845 1,205,845 6,841,002 30,200,028 4,028,000 2,640,015 196,719 6,864,734 54,228 6,918,962 $ 23,281,066 2,134,014 85,000 402,400 430,899 158,000 182,324 3,392,637 428,800 428,800 3,821,437 27,102,503 3,243,500 3,604,500 196,719 7,044,719 114,850 7,159,569 $ 19,942,934 Change in Fund Balance $ 1,193,250 $ (2,299,679) $ (77,960) $ (3,338,132) 5% -10% 0% -14% 129 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 $ 2,854,563 448,039 37,680 282,536 768,255 768,255 3,622,818 408,254 242,262 650,516 85,096 735,612 $ 2,887,206 $ 32,643 1% 130 $ 2,887,206 30,000 25,000 70,471 125,471 125,471 3,012,677 43,000 43,000 54,228 97,228 $ 2,915,449 $ 28,243 1% $ 2,887,206 $ 3,305,671 273,069 25,000 217,624 515,693 515,693 3,402,899 43,000 43,000 54,228 97,228 $ 3,305,671 $ 418,465 14% 50,000 25,000 73,289 148,289 148,289 3,453,960 707,000 707,000 114,850 821,850 $ 2,632,110 $ (673, 561) -20% Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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 $ 2,854,563 448,039 37,680 282,536 768,255 768,255 3,622,818 408,254 242,262 650,516 85,096 735,612 $ 2,887,206 $ 32,643 1% 130 $ 2,887,206 30,000 25,000 70,471 125,471 125,471 3,012,677 43,000 43,000 54,228 97,228 $ 2,915,449 $ 28,243 1% $ 2,887,206 $ 3,305,671 273,069 25,000 217,624 515,693 515,693 3,402,899 43,000 43,000 54,228 97,228 $ 3,305,671 $ 418,465 14% 50,000 25,000 73,289 148,289 148,289 3,453,960 707,000 707,000 114,850 821,850 $ 2,632,110 $ (673, 561) -20% Fund: 4110 Cost Center: Water Trunk Activity Type/Code: Capital Projects Expenditure Highlights Projects planned for 2018 include: New Development Projects $ 43,000 143rd Avenue - Round Lake Blvd to Woodbine St 144,000 And Boundary Comm Plat 1 & Shirley Estates 520,000 $ 707,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. Projects for 2017 included: New Development Projects $ 43,000 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). Department Head: City Engineer 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 131 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 $ 6,081,930 28,138 87,366 163,162 278,666 400,000 678,666 6,760,596 33,210 172,725 205,935 205,935 $ 6,554,661 $ 472,731 8% 132 $ 6,554,661 105,000 50,000 12,912 167,912 400,000 567,912 7,122, 573 502,000 502,000 502,000 $ 6,620,573 $ 65,912 1% $ 6,554,661 20,000 50,000 65,135 135,135 400,000 535,135 7,089,796 502,000 502,000 502,000 $ 6,587,796 $ 33,135 1% $ 6,587,796 20,000 50,000 12,910 82,910 400,000 482,910 7,070,706 847,000 847,000 847,000 $ 6,223,706 $ (364, 090) -6% Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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 $ 6,081,930 28,138 87,366 163,162 278,666 400,000 678,666 6,760,596 33,210 172,725 205,935 205,935 $ 6,554,661 $ 472,731 8% 132 $ 6,554,661 105,000 50,000 12,912 167,912 400,000 567,912 7,122, 573 502,000 502,000 502,000 $ 6,620,573 $ 65,912 1% $ 6,554,661 20,000 50,000 65,135 135,135 400,000 535,135 7,089,796 502,000 502,000 502,000 $ 6,587,796 $ 33,135 1% $ 6,587,796 20,000 50,000 12,910 82,910 400,000 482,910 7,070,706 847,000 847,000 847,000 $ 6,223,706 $ (364, 090) -6% Fund: 4120 Cost Center: Sewer Trunk Activity Type/Code: Capital Projects Expenditure Highlights Projects planned for 2018 include: New Development Projects $ 117,000 Sanitary Sewer Ext - Crosstown Blvd 500,000 Aztec Estates Lift Station Upgrade 110,000 Lift Station #4 Upgrade 60,000 Lift Station #9 Upgrade 60,000 $ 847,000 Projects for 2017 included: New Development Projects $ 117,000 Lift Station #4 Upgrade 50,000 Sanitary Sewer Extensions 105,000 Replacement - Jet/Vac Truck 230,000 $ 502,000 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 133 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 2016 2017 2017 2018 Fund Balance, January 1 $ (63,357) $ (64,193) $ (64,193) $ (65,093) Revenues Investment Income (836) - (900) - Other Sources Transfers In - - - - Total Revenues and Other Sources: (836) - (900) - Total Available: (64,193) (64,193) (65,093) (65,093) Expenditures Other Services and Charges - - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - - - Fund Balance, December 31 $ (64,193) $ (64,193) $ (65,093) $ (65,093) Change in Fund Balance $ (836) $ - $ (900) $ - 1% 0% 1% 0% 134 Fund: 4130 Cost Center: Storm Sewer Activity Type/Code: Capital Projects Expenditure Highlights No expenditures planned for 2018. 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 135 City of Andover Capital Projects Funds Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out $ 5,511,747 $ 6,083,068 $ 6,083,068 $ 6,270,682 1,176,138 263,699 830,897 81,984 358,955 2,711,673 1,179,154 552,000 1,314,902 35,000 3,081,056 1,179,154 552,000 2,073,460 35,000 3,839,614 1,269,014 330,000 430,899 40,000 2,069,913 6,800 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues General Property Taxes Special Assessments Intergovernmental Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out $ 5,511,747 $ 6,083,068 $ 6,083,068 $ 6,270,682 1,176,138 263,699 830,897 81,984 358,955 2,711,673 1,179,154 552,000 1,314,902 35,000 3,081,056 1,179,154 552,000 2,073,460 35,000 3,839,614 1,269,014 330,000 430,899 40,000 2,069,913 6,800 5,000 5,000 5,300 2,718,473 3,086,056 3,844,614 2,075,213 8,230,220 9,169,124 9,927,682 8,345,895 1,577,433 3,657,000 569,719 - 2,147,152 3,657,000 Total Expenditures and Other Uses: 2,147,152 Fund Balance, December 31 $ 6,083,068 Change in Fund Balance $ 571,321 10% 136 3,657,000 $ 5,512,124 $ (570, 944) -9% 3,657,000 3,657,000 3,657,000 $ 6,270,682 $ 187,614 3% 2,988,500 2,988,500 2,988,500 $ 5,357,395 $ (913,287) -15% Fund: 4140 Cost Center: Road and Bridge Activity Type/Code: Capital Projects Expenditure Hi2hli2hts Some of the major 2018 projects are as follows: Annual street seal coat Annual street crack seal New / reconstruct routes MSA - New / reconstruct routes MSA - Intersection upgrades Pedestrian trail maintenance Pedestrian trail reconstruction Pedestrian curb ramp replacement Equipment Annual pavement markings Gravel road improvements Curb replacement Some of the major 2017 projects are as follows: Annual street seal coat Annual street crack seal New / reconstruct routes MSA - New / reconstruct routes Pedestrian trail maintenance Pedestrian trail reconstruction Pedestrian curb ramp replacement LED Crosswalk Warning system Annual pavement markings Gravel road improvements Curb replacement $ 700,000 140,000 667,000 900,000 285,000 55,000 80,000 16,000 33,500 40,000 20,000 52,000 $ 2,988,500 $ 725,000 143,000 1,236,000 1,300,000 50,000 60,000 15,000 21,000 42,000 15,000 50,000 $ 3,657,000 Department Head: City Engineer General Activity Description The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Process Used Construction projects are identified by the capital improvement process and contained in the five-year Capital Improvement Plan (CIP). The council approves the CIP annually, thereby initiating a process of feasibility study, preparation of plans and specifications, public hearings, ordering of the project, bidding the project and construction. This fund also accounts for the pavement management program, which includes annual seal coating, crack sealing and overlays for roads. ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 137 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 $ 376,632 $ 405,368 $ 405,368 $ 49,453 15,463 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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 $ 376,632 $ 405,368 $ 405,368 $ 49,453 15,463 15,000 15,000 6,506 - 1,500 431,784 147,600 147,600 19,808 100,000 10,000 473,561 262,600 174,100 473,561 850,193 262,600 667,968 174,100 579,468 15,000 75,950 90;950 90,950 140,403 29,147 15,000 15,000 15,000 415,678 584,800 515,015 25,000 444,825 599,800 530,015 40,000 444,825 599,800 530,015 40,000 $ 405,368 $ 68,168 $ 49,453 $ 100,403 $ 28,736 $ (337,200) $ (355,915) $ 50,950 8% -83% -88% 103% 138 Fund: 4150 Cost Center: Park Dedication Projects Activity Type/Code: Capital Projects Exucnditurc Hi2hli2hts 2017 Projects include: Annual Miscellaneous Projects $ 15,000 Irrigation Projects - Small Parks 25,000 $ 40,000 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 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 139 City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income 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 $ 779,066 $ 668,378 $ 668,378 $ 445,659 - - - 50,000 8,430 5,000 4,000 3,000 8,430 5,000 4,000 53,000 92,980 - - - 101,410 5,000 4,000 53,000 880,476 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues General Property Taxes Investment Income 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 $ 779,066 $ 668,378 $ 668,378 $ 445,659 - - - 50,000 8,430 5,000 4,000 3,000 8,430 5,000 4,000 53,000 92,980 - - - 101,410 5,000 4,000 53,000 880,476 673,378 672,378 498,659 5,993 - 30,000 - 196,719 196,719 196,719 196,719 202,712 196,719 226,719 196,719 9,386 - - - 212,098 196,719 226,719 196,719 $ 668,378 $ 476,659 $ 445,659 $ 301,940 $ (110,688) $ (191,719) $ (222,719) $ (143,719) -14% -29% -33% -32% 140 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. 2018 $ 196,719 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 141 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 Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 347,400 $ 458,095 $ 458,095 $ 595,295 8,098 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 347,400 $ 458,095 $ 458,095 $ 595,295 8,098 3,000 3,000 - 119,858 39,200 39,200 20,175 127,956 42,200 42,200 20,175 250,000 - 250,000 - 377,956 42,200 292,200 20,175 725,356 500,295 750,295 615,470 11,140 - 5,000 - 256,121 565,000 150,000 587,000 267,261 565,000 155,000 587,000 267,261 565,000 587,000 155,000 $ 458,095 $ (64,705) $ 595,295 $ 28,470 Change in Fund Balance $ 110,695 $ (522,800) $ 137,200 $ (566,825) 32% -114% 30% -95% 142 Fund: 4170 Cost Center: Trail & Transportation Activity Type/Code: Capital Projects Expenditure Hi2hli2hts Projects planned for 2018 include: 8' Bituminous trail and boardwalk along Crosstown Blvd - Bunker Lake Blvd to 140th Ave - $587,000 Projects planned for 2017 include: 8' Bituminous trail along Andover Blvd - Bluebird St to Vale St - $150,000 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 143 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 Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 1,051,687 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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 Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 1,051,687 $ 976,432 $ 976,432 $ 1,442,592 260,295 750,000 750,000 800,000 10,273 5,000 5,000 - 38,082 2,000 45,315 - 308,650 757,000 800,315 800,000 - 48,819 550,845 23,500 25,693 - - - 334,343 805,819 1,351,160 823,500 1,386,030 1,782,251 2,327,592 2,266,092 83,914 205,000 205,000 140,000 325,684 680,000 680,000 688,500 409,598 885,000 885,000 828,500 409,598 885,000 885,000 828,500 $ 976,432 $ 897,251 $ 1,442,592 $ 1,437,592 $ (75,255) $ (79,181) $ 466,160 $ (5,000) -7% -8% 48% 0% 144 Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Expenditure Highlights Projects outlined in the 2018 - 2022 CIP for year 2018 using the Capital Equipment Reserve Capital Projects Fund include: Using 2018 Capital Projects Reserve / levy: Replacement - Carpet / Tile Replacement - Emergency Sirens Annual Parking Lot Maintenance Emergency Operations Center Improvement Smartboard Addition Replacement - Grass #31 Replacement - One Ton Truck w/ Plow #599 New - Brush Cutter Replacement - Track Loader #610 Replacement - Small Extended Cab Truck #76 Replacement - Tymco Street Sweeper #172 Replacement - Lazer Line Painter Replacement - Hot Patch Box #08-180 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 10,000 45,000 130,000 18,000 12,000 85,000 80,000 15,000 60,000 55,000 235,000 8,500 75,000 828,500 $ 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 Department Head: Finance Director General Activity Description Resources for this fund come from residual fund transfers, interest earnings, and property tax (capital) levy. Process Used During 2017 and 2018 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 and 2018 includes a Capital Equipment Purchases levy to purchase equipment with levy dollars instead of issuing debt. ADOPTED 2018 BUDGET CITY OF ANDOVER. MINNESOTA 145 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 2016 2017 2017 2018 Fund Balance, January 1 $ 25,223 $ - Revenues Investment Income - - Other Sources Transfers In - - Total Revenues and Other Sources: - - Total Available: 25,223 - Expenditures Capital Outlay 25,223 - Other Uses Operating Transfers Out - - Total Expenditures and Other Uses: 25,223 - Fund Balance, December 31 $ - $ - Change in Fund Balance $ (25,223) $ - -100% n/a 146 n/a 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 147 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 2016 2017 2017 2018 Fund Balance, January 1 $ - Revenues Investment Income 1,005 Other Sources Bond Proceeds 520,000 Total Revenues and Other Sources: 521,005 Total Available: 521,005 Expenditures Other Services and Charges 6,500 Capital Outlay 514,505 Total Expenditures: 521,005 Other Uses Operating Transfers Out - Total Expenditures and Other Uses: 521,005 Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 148 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 149 City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Tax Increments Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 4,358,069 $ 4,459,335 $ 4,459,335 $ 3,729,335 91,808 59,940 314,095 465,843 118,480 85,000 85,000 35,000 35,000 35,000 153,480 120,000 120,000 465,843 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Fund Balance, January 1 Revenues Tax Increments Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 4,358,069 $ 4,459,335 $ 4,459,335 $ 3,729,335 91,808 59,940 314,095 465,843 118,480 85,000 85,000 35,000 35,000 35,000 153,480 120,000 120,000 465,843 153,480 120,000 120,000 Change in Fund Balance $ 101,266 4,823,912 4,612,815 4,579,335 3,849,335 -16% 364,274 100,470 100,000 100,000 303 750,000 750,000 750,000 364,577 850,470 850,000 850,000 364,577 850,470 850,000 850,000 Fund Balance, December 31 $ 4,459,335 $ 3,762,345 $ 3,729,335 $ 2,999,335 Change in Fund Balance $ 101,266 $ (696,990) $ (730,000) $ (730,000) 2% -16% -16% -20% 150 Fund: 4501 Cost Center: Tax Increment Projects Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights 2018 Budgeted expenditures include: Redevelopment Site Purchases $ 750,000 Pay -As -You -Go Note 65,237 Administration 34,763 $ 850,000 2017 expenditures include: Redevelopment Site Purchases $ 750,000 Pay -As -You -Go Note 58,623 Administration 41,847 $ 850,470 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 151 City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ 840,785 Revenues Special Assessments Investment Income Total Revenues: Other Sources Transfers In - Total Revenues and Other Sources: 89,891 Total Available: Expenditures Other Services and Charges - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ 930,676 Change in Fund Balance $ 89,891 11% $ 930,676 $ 930,676 $ 919,676 78,189 - - 2,400 11,702 5,000 5,000 5,000 89,891 5,000 5,000 7,400 5,000 5,000 7,400 930,676 935,676 935,676 927,076 152 $ 935,676 $ 5,000 1% 16,000 - 16,000 $ 919,676 $ (11,000) -1% $ 927,076 $ 7,400 1% Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Fund Balance, January 1 $ 840,785 Revenues Special Assessments Investment Income Total Revenues: Other Sources Transfers In - Total Revenues and Other Sources: 89,891 Total Available: Expenditures Other Services and Charges - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ 930,676 Change in Fund Balance $ 89,891 11% $ 930,676 $ 930,676 $ 919,676 78,189 - - 2,400 11,702 5,000 5,000 5,000 89,891 5,000 5,000 7,400 5,000 5,000 7,400 930,676 935,676 935,676 927,076 152 $ 935,676 $ 5,000 1% 16,000 - 16,000 $ 919,676 $ (11,000) -1% $ 927,076 $ 7,400 1% Fund: 4601 Cost Center: Permanent Improvement Revolving Activity Type/Code: Capital Projects Expenditure Highlights No expenditures are planned for 2018. 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 153 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 2016 2017 2017 2018 Fund Balance, January 1 $ 2,031 $ - Revenues Investment Income - - Other Sources Transfers In - - Total Revenues and Other Sources: - - Total Available: 2,031 - Expenditures Capital Outlay - - Other Uses Operating Transfers Out 2,031 - Total Expenditures and Other Uses: 2,031 - Fund Balance, December 31 $ - $ - Change in Fund Balance $ (2,031) $ - -100% n/a 154 n/a 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. This fund was closed 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 2018 BUDGET CITY OF ANDOVER, MINNESOTA 155 This page left blank intentionally. 156 CITY OF ANDOVER, MINNESOTA 2018 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. 157 This page left blank intentionally. 158 City of Andover Enterprise Funds 2018 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Penalties Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 6,910,106 $ 7,521,386 $ 7,521,386 $ 7,528,819 5,101,941 68,768 28,591 57,791 5,257,091 85,096 2,192 87,288 5,344,379 12,254,485 1,011,254 225,491 2,069,533 1,500 828,391 4,136,169 596,930 4,733,099 $ 7,521,386 Change in Unrestricted Net Assets $ 611,280 9% 159 5,119,626 46,000 13,000 16,000 67,000 5,261,626 54,228 54,228 5,315,854 12,837,240 1,025,217 308,200 2,273,323 260,000 828,751 4,695,491 596,930 5,292,421 $ 7,544,819 $ 23,433 0% 5,119,626 46,000 13,000 67,000 5,245,626 54,228 54,228 5,299,854 12,821,240 1,025,217 308,200 2,273,323 260,000 828,751 4,695,491 596,930 5,292,421 $ 7,528,819 $ 7,433 0% 5,186,102 46,000 13,000 67,000 5,312,102 114,850 114,850 5,426,952 12,955,771 1,067,991 320,700 2,287,723 258,000 776,843 4,711,257 602,058 5,313,315 $ 7,642,456 $ 113,637 2% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Penalties Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 6,910,106 $ 7,521,386 $ 7,521,386 $ 7,528,819 5,101,941 68,768 28,591 57,791 5,257,091 85,096 2,192 87,288 5,344,379 12,254,485 1,011,254 225,491 2,069,533 1,500 828,391 4,136,169 596,930 4,733,099 $ 7,521,386 Change in Unrestricted Net Assets $ 611,280 9% 159 5,119,626 46,000 13,000 16,000 67,000 5,261,626 54,228 54,228 5,315,854 12,837,240 1,025,217 308,200 2,273,323 260,000 828,751 4,695,491 596,930 5,292,421 $ 7,544,819 $ 23,433 0% 5,119,626 46,000 13,000 67,000 5,245,626 54,228 54,228 5,299,854 12,821,240 1,025,217 308,200 2,273,323 260,000 828,751 4,695,491 596,930 5,292,421 $ 7,528,819 $ 7,433 0% 5,186,102 46,000 13,000 67,000 5,312,102 114,850 114,850 5,426,952 12,955,771 1,067,991 320,700 2,287,723 258,000 776,843 4,711,257 602,058 5,313,315 $ 7,642,456 $ 113,637 2% City of Andover Enterprise Funds Water Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Penalties Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 3,040,230 $ 3,372,043 $ 3,372,043 $ 3,517,491 2,492,430 32,464 28,591 57,580 2,611,065 85,096 767 85,863 2,696,928 5,737,158 498,129 196,824 690,021 1,500 828,391 2,214,865 150,250 2,365,115 $ 3,372,043 Change in Unrestricted Net Assets $ 331,813 11% 2,433,052 15,000 13,000 6,000 67,000 2,534,052 54,228 54,228 2,588,280 5,960,323 457,216 238,200 747,415 15,000 828,751 2,286,582 150,250 2,436,832 $ 3,523,491 $ 151,448 4% 2,433,052 15,000 13,000 67,000 2,528,052 54,228 54,228 2,582,280 5,954,323 457,216 238,200 747,415 15,000 828,751 2,286,582 150,250 2,436,832 $ 3,517,491 $ 145,448 4% 2,456,616 15,000 13,000 67,000 2,551,616 114,850 114,850 2,666,466 6,183,957 481,118 250,700 751,665 76,000 776,843 2,336,326 90,700 2,427,026 $ 3,756,931 $ 239,440 7% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2016 2017 2017 2018 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Penalties Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 3,040,230 $ 3,372,043 $ 3,372,043 $ 3,517,491 2,492,430 32,464 28,591 57,580 2,611,065 85,096 767 85,863 2,696,928 5,737,158 498,129 196,824 690,021 1,500 828,391 2,214,865 150,250 2,365,115 $ 3,372,043 Change in Unrestricted Net Assets $ 331,813 11% 2,433,052 15,000 13,000 6,000 67,000 2,534,052 54,228 54,228 2,588,280 5,960,323 457,216 238,200 747,415 15,000 828,751 2,286,582 150,250 2,436,832 $ 3,523,491 $ 151,448 4% 2,433,052 15,000 13,000 67,000 2,528,052 54,228 54,228 2,582,280 5,954,323 457,216 238,200 747,415 15,000 828,751 2,286,582 150,250 2,436,832 $ 3,517,491 $ 145,448 4% 2,456,616 15,000 13,000 67,000 2,551,616 114,850 114,850 2,666,466 6,183,957 481,118 250,700 751,665 76,000 776,843 2,336,326 90,700 2,427,026 $ 3,756,931 $ 239,440 7% Fund: 5100 -Water Cost Center: 48100 Activity Description Operate and maintain the City's water system including WTP, wells, towers and water mains. Provide a continuous, potable, bacteria free water supply at proper pressure levels. Maintain customer water meters and respond to other service requests. Maintain water distribution for fire protection system needs. Conform to all State and Federal monitoring rules, provide tours and information to the public. Process Used Operate wells and WTP in a manner that ensures a safe, clean and adequate water supply, that will meet peak daily demands and fire protection demands. Maintain wells, treatment facility, and related infrastructure. Operate and maintain chemical feed equipment. Collect, analyze and record water samples daily. Maintain, test and repair water meters. Respond to emergencies 24 hours a day. Work with contractors to locate watermains, locate and operate gate valves, monitor tests during final inspections. Check WTP, 8 wells, 7 days a week, 365 days per year. Flush all watermains in the spring every other year. Maintain all hydrants. Locate, operate and clean gate valves to ensure proper operation. Service Expense Highlights Budget 2018 includes the rehabilitation of a well. Every seven years a pump is pulled and inspected for wear and then the well is televised to inspect its condition. Water meter costs are rising and starting to replace older meters. It also includes the replacement of a utility truck and cost sharing of a side by side. Department: Water Director/Manager: Utilities Supervisor Actual Current Budgeted Performance Measures 2016 2017 2018 Number of connections 6,635 6,665 6,700 Number of wells 8 8 8 Number of elevated storage tanks 2 2 2 Water Treatment Facility 1 1 1 Miles of water main 117.5 119 120.5 Number of hydrants 1,233 1,250 1,270 Number of valves 2,919 2,980 3,000 Department: Water Director/Manager: Utilities Supervisor Service Expenses By Category Budgeted 2018 4.58 Budgeted 2018 $ 481,118 250,700 402,365 349,300 76,000 776,843 90,700 $ 2,427,026 ■ Personal Services ■Supplies & Materials []Other Services / Charges ❑ Purchased Services ■ Capital Outlay []Debt Service 13 Other Uses Expenses Per Connection Actual Current Staffing Levels 2016 2017 FTE Equivalents 4.87 4.58 6,635 Actual Current Service Expenses 2016 2017 Personal Services $ 498,130 $ 457,216 Supplies & Materials 196,823 238,200 Other Services / Charges 379,320 401,365 Purchased Services 286,078 346,050 Capital Outlay - 15,000 Debt Service 853,014 828,751 Other Uses 150,250 150,250 TOTAL $ 2,363,615 $ 2,436,832 Service Expenses By Category Budgeted 2018 4.58 Budgeted 2018 $ 481,118 250,700 402,365 349,300 76,000 776,843 90,700 $ 2,427,026 ■ Personal Services ■Supplies & Materials []Other Services / Charges ❑ Purchased Services ■ Capital Outlay []Debt Service 13 Other Uses Expenses Per Connection Actual Current Budgeted 2016 2017 2018 Connections 6,635 6,665 6,700 Monthly $ 29.69 $ 30.47 $ 30.19 Annual $ 356.23 $ 365.62 $ 362.24 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 161 City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 3,618,050 2,144,583 33,540 211 2,178,334 1,425 2,179,759 5,797,809 316,505 17,151 1,283,772 1,617,428 446,680 2,064,108 $ 3,733,701 $ 115,651 3% 162 $ 3,733,701 2,215,411 30,000 10,000 2,255,411 2,255,411 5,989,112 346,626 36,800 1,348,912 245,000 1,977,338 446,680 2,424,018 $ 3,565,094 $ (168,607) -5% $ 3,733,701 2,215,411 30,000 2,245,411 2,245,411 5,979,112 346,626 36,800 1,348,912 245,000 1,977,338 446,680_ 2,424,018 $ 3,555,094 $ (178,607) -5% $ 3,555,094 2,226,349 30,000 2,256,349 2,256,349 5,811,443 358,603 36,800 1,350,162 166,000 1,911,565 470,012 2,381,577 $ 3,429,866 $ (125,228) -4% Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Penalties Miscellaneous Total Revenues: Other Sources Gain on the Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 3,618,050 2,144,583 33,540 211 2,178,334 1,425 2,179,759 5,797,809 316,505 17,151 1,283,772 1,617,428 446,680 2,064,108 $ 3,733,701 $ 115,651 3% 162 $ 3,733,701 2,215,411 30,000 10,000 2,255,411 2,255,411 5,989,112 346,626 36,800 1,348,912 245,000 1,977,338 446,680 2,424,018 $ 3,565,094 $ (168,607) -5% $ 3,733,701 2,215,411 30,000 2,245,411 2,245,411 5,979,112 346,626 36,800 1,348,912 245,000 1,977,338 446,680_ 2,424,018 $ 3,555,094 $ (178,607) -5% $ 3,555,094 2,226,349 30,000 2,256,349 2,256,349 5,811,443 358,603 36,800 1,350,162 166,000 1,911,565 470,012 2,381,577 $ 3,429,866 $ (125,228) -4% 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 Actual 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. Budget 2018 includes the purchase of equipment ($166,000): replacement of a utility truck and the cost sharing of a side by side. Actual Current Budgeted Performance Measures 2016 2017 2018 Number of connections 7,482 7,574 7,674 Number of lift stations 9 9 9 Miles of sewer main 96 98 99 Number of sewer manholes 2.304 2.335 2.365 Department: Sanitary Sewer Director/Manager: Utility Supervisor Service Expenses By Category Budgeted onia 0.00 Budgeted ,)nia y J."70, 0UJ 36,800 95,940 1,254,222 166,000 470,012 $ 2,381,577 ■Personal Services ■Supplies & Materials 130ther Services / Charges oPurchased Services ■Capital Outlay eOther Uses Actual Current Staffing Levels 2016 2017 FTE Equivalents 2.91 3.33 7,482 Actual Current Service Expenses 2016 2017 Personal Services $ 316,505 $ 346,626 Supplies & Materials 17,150 36,800 Other Services / Charges 93,150 95,940 Purchased Services 1,190,623 1,252,972 Capital Outlay - 245,000 Other Uses 446,680 446,680 TOTAL $ 2,064,108 $ 2,424,018 Service Expenses By Category Budgeted onia 0.00 Budgeted ,)nia y J."70, 0UJ 36,800 95,940 1,254,222 166,000 470,012 $ 2,381,577 ■Personal Services ■Supplies & Materials 130ther Services / Charges oPurchased Services ■Capital Outlay eOther Uses ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 163 Actual Current Budgeted Expenses Per Connection 2016 2017 2018 Connections 7,482 7,574 7,674 Monthly $ 22.99 $ 26.67 $ 25.86 Annual --------------------------- $ 275.88 $ 320.04 $ 310.34 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 163 City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 251,826 $ 415,642 $ 415,642 $ 456,234 464,928 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 251,826 $ 415,642 $ 415,642 $ 456,234 464,928 471,163 471,163 503,137 2,764 1,000 1,000 1,000 467,692 472,163 472,163 504,137 467,692 472,163 472,163 504,137 719,518 887;805 887,805 960,371 196,620 11,516 95,740 303,876 221,375 33,200 176,996 431;571 221,375 33,200 176,996 431,571 228,270 33,200 185,896 16,000 463,366 Transfers Out - - - 41,346 Total Expenditures and Other Uses: 303,876 431,571 431,571 504,712 Unrestricted Net Assets, December 31 $ 415,642 $ 456,234 $ 456,234 $ 455,659 Change in Unrestricted Net Assets $ 163,816 $ 40,592 $ 40,592 $ (575) 65% 10% 10% 0% 164 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 Actual 2017 includes the ditch cleaning at 141st Lane and Heather St ($55,000). Budget 2018 includes additional ditch cleaning and an operating transfer Performance Measures Number of billable units Actual 2016 10,812 Current 2017 10,890 Budgeted 2018 10,925 Mileage of storm lines maintained 77 77.5 78.5 Maint. of catch basins & manholes 3,880 3,901 3,925 Maint. of sedimentation ponds 294 298 302 Maint. of culverts 385 386 387 Staffing Levels FTE Equivalents Service Expenses Personal Services Supplies & Materials Other Services / Charges Purchased Services Capital Outlay Other Uses TOTAL Department: Storm Sewer Director/Manager: Utility Supervisor Actual Current Budgeted 2016 2017 2018 2.39 2.40 2.40 Actual Current Budgeted 2016 2017 2018 $ 196,620 $ 221,375 $ 228,270 11,516 33,200 33,200 (42, 862) 50,396 50,396 52,877 126,600 135,500 - - 16,000 - - 41,346 $ 218,151 $ 431,571 $ 504,712 Service Expenses By Category Expenses Per Customer Billable Units Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 165 Actual 1)n4a IU,O IL $ 1.68 $ 20.18 oPersonal Services ■Supplies & Materials oOther Services / Charges OPurchased Services ■Capital Outlay ■Other Uses Current 2017 10,890 $ 3.30 $ 39.63 Budgeted 7n40 I U, VLJ $ 3.85 $ 46.20 This page left blank intentionally. 166 CITY OF ANDOVER, MINNESOTA 2018 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. 167 This page left blank intentionally. 168 City of Andover Internal Service Funds 2018 Budget Summary - All Internal Service Funds Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 744,804 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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: $ 744,804 $ 956,898 $ 956,898 $ 904,542 956,898 $ 910,934 $ 904,542 1,119, 766 1,158, 507 1,157, 507 1,169, 633 9,907 3,000 3,000 3,000 109,594 - 2,478 - 1,239,267 1,161, 507 1,162, 985 1,172, 633 1,172, 633 1,239,267 1,161, 507 1,162, 985 1,984,071 2,118,405 2,119,883 2,077,175 407,298 442,639 450,509 456,090 280,455 404,160 404,160 404,810 339,420 360,672 360,672 360,172 1,027,173 1,207,471 1,215,341 1,221,072 Unrestricted Net Assets, December 31 $ Change in Unrestricted Net Assets $ 1,027,173 1,207,471 1,215,341 1,221,072 956,898 $ 910,934 $ 904,542 $ 856,103 212,094 $ (45,964) $ (52,356) $ (48,439) 28% -5% -5% -5% M City of Andover Internal Service Funds Central Equipment Maintenance Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 412,179 $ 503,069 $ 503,069 $ 429,413 720,592 6,180 481 727,253 698,974 698,974 2,000 2,000 - 2,478 700,974 703,452 698,974 2,000 700,974 727,253 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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: $ 412,179 $ 503,069 $ 503,069 $ 429,413 720,592 6,180 481 727,253 698,974 698,974 2,000 2,000 - 2,478 700,974 703,452 698,974 2,000 700,974 727,253 700,974 703,452 700,974 503,069 1,139, 432 1,204,043 1,206,521 1,130, 387 $ (76,134) 262,035 278,926 278,926 291,970 257,422 376,360 376,360 376,510 116,906 121,822 121,822 121,322 636,363 777,108 777,108 789,802 Unrestricted Net Assets, December 31 $ Change in Unrestricted Net Assets $ 636,363 777,108 777,108 789,802 503,069 $ 426,935 $ 429,413 $ 340,585 90,890 $ (76,134) $ (73,656) $ (88,828) 22% -15% -15% -21% 170 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 change. Performance Measures Number of motorized equipment Number of non -motorized equipment Inspections Work Orders Fuel - Unleaded (gal) Fuel - Diesel (gal) Actual Current Budgeted 2016 2017 2018 288 268 270 545 535 535 104 104 107 872 870 850 13,495 29,028 30,000 32,465 29,660 28,000 Department: Vehicle Maintenance Director/Manager: Vehicle Maintenance Supervisor Actual Staffing Levels 2016 FTE Equivalents 3.07 Service Expenditures By Category F_0-100�� 66- !!1 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 171 Actual 2016 32,335 $ 1.64 $ 19.68 Current Budgeted 2017 2018 3.25 3.25 Current Actual Service Expenditures 2016 Personal Services $ 262,035 Supplies & Materials 257,423 Other Services / Charges 72,327 Purchased Services 44,578 TOTAL $ 636,363 Service Expenditures By Category F_0-100�� 66- !!1 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 171 Actual 2016 32,335 $ 1.64 $ 19.68 Current Budgeted 2017 2018 3.25 3.25 Current Budgeted 2017 2018 $ 278,926 $ 291,970 376,360 376,510 75,722 75,222 46,100 46,100 $ 777,108 $ 789,802 ■Personal Services ■Supplies & Materials DOther Services / Charges OPurchased Services Current 2017 32,600 $ 1.99 $ 23.84 Budgeted 2018 32,900 $ 2.00 $ 24.01 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: $ 332,625 $ 453,829 $ 453,829 $ 475,129 399,174 3,727 109,113 512,014 459,533 1,000 460,533 458,533 1,000 459,533 470,659 1,000 471,659 512,014 Actual Adopted Estimate Adopted Description 2016 2017 2017 2018 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: $ 332,625 $ 453,829 $ 453,829 $ 475,129 399,174 3,727 109,113 512,014 459,533 1,000 460,533 458,533 1,000 459,533 470,659 1,000 471,659 512,014 460, 533 459,533 471,659 453,829 844,639 914;362 913,362 946,788 $ 30,170 145,263 163,713 171,583 164,120 23,033 27,800 27,800 28,300 222,514 238,850 238,850 238,850 390,810 430;363 438,233 431,270 Unrestricted Net Assets, December 31 $ Change in Unrestricted Net Assets $ 390,810 430;363 438,233 431,270 453,829 $ 483,999 $ 475,129 $ 515,518 121,204 $ 30,170 $ 21,300 $ 40,389 36% 7% 5% 9% 172 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 Highlights No major changes planned for Budget 2018. Worker Comp premium continues to be low and no planned increases for commercial insurance. Department: Risk Management Director/Manager: Finance Director Actual Current Budgeted Staffing Levels 2016 2017 2018 FTE Equivalents 0.10 0.10 0.10 a Personal Services []Supplies & Materials []Other Services / Charges []Purchased Services Actual Current Budgeted Service Expenditures 2016 2017 2018 Personal Services $ 145,261 $ 171,583 $ 164,120 Supplies & Materials 23,033 27,800 28,300 Other Services / Charges 209,976 231,600 231,600 Purchased Services 12,540 7,250 7,250 TOTAL $ 390,810 $ 438,233 $ 431,270 Service Expenditures By Catcgory a Personal Services []Supplies & Materials []Other Services / Charges []Purchased Services ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 173 Actual Current Budgeted Expenditures Per Capita 2016 2017 2018 Population - Estimates 32,335 32,600 32,900 Monthly $ 1.01 $ 1.12 $ 1.09 Annual $ 12.09 $ 13.44 $ 13.11 ADOPTED 2018 BUDGET CITY OF ANDOVER, MINNESOTA 173 This page left blank intentionally. 174 General Fund Water EF Sewer EF Storm 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) 2012C G.O. Abatement Bonds DSF Community Center SRF 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 Storm Sewer EF Total Capital Projects Funds Enterprise Funds (EF) Water EF Water Trunk CPF General Fund Sewer EF General Fund Sewer Trunk CPF Storm Sewer EF General Fund Capital Equipment Reserve CPF Total Enterprise Funds Total All Funds CITY OF ANDOVER Budget Year 2018 Operating Transfers Transfer Transfer In Out S 90,700 $ 70,012 17,846 178,558 300,000 5,300 305,300 300,000 General Fund Admin Allocation General Fund Admin Allocation General Fund Admin Allocation Debt Service Allocation Roadway Degredation Debt Service Allocation 114,850 - 90,700 114,850 90,700 - 70,012 400,000 470.012 17,846 23,500 41.346 114,850 602,058 $ 1,022,208 $ 1,022,208 175 Debt Service Allocation General Fund Admin Allocation General Fund Admin Allocation Replacement Reserve General Fund Admin Allocation Debt Service Allocation 114,850 Debt Service Allocation 400,000 Replacement Reserve 5,300 Roadway Degredation 23,500 Debt Service Allocation 428,800 114,850 114,850 - 90,700 114,850 90,700 - 70,012 400,000 470.012 17,846 23,500 41.346 114,850 602,058 $ 1,022,208 $ 1,022,208 175 Debt Service Allocation General Fund Admin Allocation General Fund Admin Allocation Replacement Reserve General Fund Admin Allocation Debt Service Allocation CITY OF ANDOVER 2018 - 2022 CIP Development Calendar Date Activity February 28, 2017 2018 - 2022 CIP Council Workshop to determine CIP guidelines. March 7, 2017 Council adopts 2018 Budget Development Guidelines. March 28, 2017 Council discussion of CIP priorities for 2018 - 2022. April 3, 2017 Draft 2018 - 2022 CIP Calendar. April 3 - May 1, 2017 Prepare base CIP Sheets. April 6, 2017 Vehicle Purchasing Committee review of CIP equipment. April 18, 2017 2018 - 2022 Capital Improvement Plan Discussion May 4, 2017 CIP kick-off meeting with Department Heads to discuss CIP sheet content. May 5, 2017 Projected cash flow statements prepared. May 23, 2017 City Council progress update and Council CIP priority discussion. June 1, 2017 All projects updated in CIP program. June 9, 2017 Review projects — new and shifts. June 27, 2017 City Council progress update and Council CIP priority discussion. July - August, 2017 Commission and Committee review. July 1, 2017 CIP project sheets completed. July 5, 2017 CIP project sheets staff initial review. July 6, 2017 Vehicle Purchasing Committee review of CIP equipment. July 18, 2017 City Council review of City Utilities projects. August 1, 2017 CIP project sheet staff final review. August 7 - 18, 2017 Preparation of final draft of 2018 - 2022 CIP for Council Workshop. August 23, 2017 City Council review of draft 2018 - 2022 CIP. September 26, 2017 Council Workshop — progress report; public comment update. October 17, 2017 City Council holds 2018 - 2022 CIP public hearing. October 17, 2017 City Council adopts 2018 - 2022 CIP. 176 Responsibility City Council / Staff City Council / Staff City Council / Staff Finance Finance Vehicle Purchasing Committee City Council / Staff Department Heads Finance City Council / Staff Department Heads Department Heads City Council / Staff Admin / Department Heads Department Heads Admin / Department Heads Vehicle Purchasing Committee City Council / Staff Admin / Department Heads Finance City Council / Staff City Council / Staff City Council City Council CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 Buildine 19-42300-01 Replacement - Small Extended Cab Pick Up #8 $ - $ 35,000 $ - $ - $ - Replace Unit #8, a 2004 Chevrolet Colorado pick up truck with 95,560 miles. Central Equipment 19-48800-01 Replacement - Service Truck #371 $ - $ 45,000 $ - $ - $ - Replace Unit #371, a 2001 S 10 Ext Cab 4x4 truck with 120,877 miles. The replacement truck would be a crew cab with a tailgate lift. Communitv Center 18-44000-01 ACC/YMCA Expansion $ 200,000 $ 6,725,000 $ - $ - $ - 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. 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 18-44000-02 Replacement - Carpeting $ 12,000 $ - $ 12,000 $ - $ - Replacement of carpet in offices and field house entrance. 2018 - offices. 2020 Field House Entrance. 18-44400-01 New Inflatables $ 5,000 $ - $ - $ - $ - Inflatables (jumpers) are used in the field house and are a big part of our tot programs and birthday parties. 18-44400-02 Replacement - Pickelball Inserts/Net System $ 5,000 $ - $ - $ - $ - Drill holes in the tieldhouse to use pickle ball post inserts, similar to the volleyball post inserts. 19-44000-01 Replacement - All Community Center Doors $ - $ 75,000 $ - $ - $ - Replace all steel and wooden doors within the facility. 18-44200-01 Replacement - Skate Sharpener $ - $ 8,000 $ - $ - $ - Replacement of the current skate sharpener. 19-44300-01 Refacing Rink Boards $ - $ 25,000 $ - $ - $ - Replace the white poly and yellow kick plates on the rink boards along with new netting above the glass on the ends. 19-44300-02 Repaint Ice Arena Ceiling $ - $ 25,000 $ - $ - $ - Repaint the ice arena ceiling. 177 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN Replace the floor scrubber that is used daily in the community center 21-44200-01 Repaint Field House Ceiling S - S - S - S 25,000 S Repainting the field house ceiling 178 2018 2019 2020 2021 2022 19-44300-03 Replacement - Ice Arena Refridgeration System S - S 1,000,000 S - S - S - 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 S - S 15,000 S - S - S - Replacement of the heat exchangers in the Munters unit that heats the ice arena. 19-44300-05 Replacement - Zamboni Battery Pack S - S 14,000 S - S - S - Replace the battery pack for the electric zamboni. 19-44300-06 Replacement - Munters Desiccant Wheel S - S 36,000 S - S - S - Replace the desiccant wheel in the munters unit that provides the dehumidification to the ice arena. The wheel is part of the system that draws the moisture out of the facility. 20-44000-01 Replacement - Scissor Lift S - S - S 15,000 S - S - 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 S - S - S 15,000 S - S - Replace lobby furniture including tables, chairs and garbage cans. 20-44000-03 Replacement - Community Center Roof Replacement S - S - S 500,000 S - S - Full roof replacement (rubber membrane). 20-44000-04 Replacement - Kaivac Cleaning System S - S - S 10,000 S - S - Replace the kaivac cleaning system that is used to clean bleachers, player box areas and bathrooms. It includes a power washer and wet vac system. 20-44000-05 Replacement - Camera/Security System S - S - S 12,000 S - S - Upgrade all indoor cameras from coax to digital. 20-44300-01 Replacement - Zamboni Room Water Heater S - S - S 25,000 S - S - Replace the water heater that provides hot water to the zamboni room. 21-44000-01 Replacement - Floor Scrubber S - S - S - S 15,000 S - Replace the floor scrubber that is used daily in the community center 21-44200-01 Repaint Field House Ceiling S - S - S - S 25,000 S Repainting the field house ceiling 178 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 21-44300-02 Replacement - Electric Edger Replace the electric edger used for ice maintenance. 2018 2019 2020 2021 2022 $ - $ - $ - $ 8,000 $ - 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. 21-44300-01 Replacement - Zamboni $ - $ - $ - $ - $ 150,000 Replace the zamboni which provides ice maintenance. 22-44300-02 Replacement - Ice Rink Hard Dividers $ - $ - $ - $ - $ 8,000 Replace the rink dividers that are used by the young kids to split the rink up into thirds. Emereencv Management 18-424001 Emergency Operations Center Improvement $ 18,000 $ 7,500 $ 10,000 $ 10,000 $ - Construct a functional Emergency Operational Center (EOC) by improving workable space at fire station #1. 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. 18-42400-02 Replacement - Emergency Sirens $ 45,000 $ 45,000 $ 45,000 $ - $ - Replace 12 emergency sirens, three per year. Nine remaining. Eneineerin2 18-41600-01 New Development Projects $ 160,000 $ 165,000 $ 175,000 $ 180,000 $ 185,000 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. 18-41600-02 Pedestrian Trail Maintenance $ 55,000 $ 60,000 $ 65,000 $ 70,000 $ 75,000 This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system. 18-41600-03 New Pedestrian Trail and Sidewalk Segments $ 587,000 $ - $ 935,000 $ 372,000 $ - 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: 179 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2018 - 8' bituminous trail and boardwalk along Crosstown Blvd - Bunker Lake Blvd to 140th Ave ($587,000). 2020 - 8' bituminous trail along Crosstown Blvd - Xeon St to railroad tracks ($158,000). 2020 - 8' bituminous trail along Crosstown Blvd - railroad tracks to 157th Ave ($287,000). 2020 - 8' bituminous trail along Crosstown Blvd - 157th Ave to 159th Ave ($236,000). 2020 - 10' bituminous trail - Kensington Estates 7th Addition to Andover Station North ($265,000 - Grant). 2021 - 8' bituminous trail and boardwalk along Verdin St - 161 st Ave to 163rd Lane ($372,000). 2020 2021 2022 18-41600-04 Pedestrian Trail Reconstruction $ 80,000 $ 100,000 $ 120,000 $ 140,000 $ 160,000 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. 18-41600-05 Pedestrian Curb Ramp Replacements $ 16,000 $ 17,000 $ 18,000 $ 19,000 $ 20,000 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. 18-41600-06 Replacement - Data Collector / Total Station $ 33,500 $ - $ - $ - $ - Replace data collector and Total Station survey equipment. 20-41600-01 Replacement - Pick Up Truck #5 $ - $ - $ 40,000 $ - $ - Replace unit #6, a 1996 Dodge pickup with 89,109 miles. 22-41600-01 Replacement - 3/4 Ton Truck #12 $ - $ - $ - $ - $ 50,000 Replace unit #12, a 1997 Dodge pickup with 79,834 miles. Facility Manaeement 18-41900-01 Annual Parking Lot Maintenance $ 130,000 $ 35,000 $ 37,000 $ 39,000 $ 40,000 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. The parking lot at fire station #1 will have a complete reconstruction in 2018. 18-41900-02 Public Works Relocation / Expansion $ 450,000 $ 8,500,000 $ - $ - $ - 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. 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. 180 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 18-41900-03 Carpet / Tile Replacement $ 10,000 $ - $ 10,000 $ - $ 10,000 The replacement of carpet and tile in appropriate areas of all City buildings where deemed necessary. An annual review of all areas will be done to determine the order of replacement. 19-41900-01 Building A - Seal Floor $ - $ 25,000 $ - $ - $ - Apply a sealant to the cement floor in Building A (large garage). 19-41900-02 Memorial - Veterans Memorial $ - $ 10,000 $ - $ - $ - A memorial to honor Andover veterans. 19-41900-04 New - Diesel Exhaust Capturing System $ - $ 45,000 $ - $ - $ - Install a vehicle exhaust capturing system at Fire Station #1. 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 $ - $ 200,000 $ - $ - $ - Upgrade or replace the current financial/payroll software program. Fire 18-42200-01 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. 18-42200-02 Replacement - Grass #31 $ 85,000 # $- Replace Unit #4893, a 1991 Ford 4x4 grass vehicle with 23,350 miles. This also has been used as medical response truck for station #3. Now that the fire department has a separate vehicle that will be used to respond to medical calls, the new grass trucks will be designed to function for one primary purpose and will allow for new wildfire technologies to be put on the truck. 19-42200-01 Replacement - Tanker #11 $ - $ 400,000 - Replace Unit #4889, a 1991 International tanker with all wheel drive and 10,322 miles. 19-42200-02 New - Bullex Fire Extinguisher Prop $ - $ 8,000 $- Purchase a training tool to educate the community on the proper use of a fire extinguisher. 181 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 20-42200-01 Replacement - SCBA Compressors $ - $ - $ 130,000 $ - $ - Replace self contained breathing apparatus compressors at station 2 and 3. These compressors are used to fill breathing air into the bottles the firefighters wear on their backs to enter dangerous conditions. 20-42200-02 Replacement - 800 MHz Radios $ - $ - $ 35,000 $ 35,000 $ 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 - Grass #21 $ - $ - $ 85,000 $ - $ - Replace Unit #4892, a 1991 Ford 4x4 grass vehicle with 22,438 miles This has also been used as a medical response unit for Station #2. Now that the fire department has a separate vehicle that will be used to respond to medical calls, the new grass trucks will be designed to function for one primary purpose and will allow for new wildfire technologies to be put on the truck. 20-42200-04 Replacement - Thermal Imaging Cameras $ - $ - $ 36,000 $ - $ - Thermal imaging cameras are high-end heat seeking devices used to spot fires in enclosed areas. They are also used to find victims in heavy smoke conditions. 21-42200-01 Replacement - Grass Utility Vehicle (UTV) #4813 $ - $ - $ - $ 45,000 $ - Replace unit #4813, a Polaris 6x6 with 122 miles and is used primarily for wild fires. 21-42200-02 Replacement - 1999 GMC Sonoma Truck (U-10) #4810 $ - $ - $ - $ 45,000 $ - Replace unit #4810, a 1999 GMC Sonoma extended cab truck with 51,335 miles. 21-42200-03 Replacement - Engine 21 #4884 $ - $ - $ - $ 450,000 $ - Replace unit #4884, a 1997 Pierce Quantum Engine with 1,658 hours and 26,910 miles. 22-42200-01 Replacement - Engine 31 #4800 $ - $ - $ - $ - $ 450,000 Replace unit #4800, a 2000 Pierce Quantum Engine with 17,131 miles. Information Technoloev 18-41420-01 Smartboard Addition $ 12,000 $ - $ - $ - $ - Purchase a smart board for the council chambers. 182 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 18-41420-02 Shoretel Switch Replacement $ 10,000 $ - $ - $ - $ - Replace all Shortel switches at City Hall and Fire Station #1. Park & Rec - Operations 18-45000-01 Replace/Repair Play Structures - Various Parks $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Repair to fall zones and achieve ADA accessibility. Replacement of playground equipment and other major replacements, such as short fences on ball fields, soccer goals, and any area of play that does not meet safety specifications. The proposed rebuilds are as follows: 2018 - Pine Hills South Park and Purple Park 2019 - Terrace Park and Strootman Park 2020 - Hawkridge Park and Sunshine Park 2021 - Hidden Creek North Park and Prairie Knoll Park 2022 - Wild Iris Park and Tot Lot Park 18-45000-02 Replace/Repair Major Park Projects - Various Parks $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 Future projects: fence rebuilds at various parks, pedestrian bridge deck replacement, and parking lot reconstruction. 18-45000-03 Replacement - One Ton Crew Truck w/ Plow #599 $ 80,000 $ - $ - $ - $ - Replace unit #599, a 2000 Ford F450 one ton truck with a snow plow with 76,466 miles on it. 18-45000-04 New - Brush Cutter $ 15,000 $ - $ - $ - $ - Purchase a brush cutter that will attach to a skid steer. It will be used to bruch-out ditches and along the trail system. 18-45000-05 Replacement - Bobcat Track Loader #610 $ 60,000 $ - $ - $ - $ - Replace unit #610, a 2014 Bobcat T590 track loader with 988 hours. 18-45000-06 Replacement - Small Extended Cab Truck #76 $ 55,000 $ - $ - $ - $ - Replace unit #76, a Chevrolet S-10 extended cab pickup with 56,682 miles. 20-45000-01 Replacement - Water Tanker #161 $ - $ - $ 175,000 $ - $ - Replace unit #161, a 2002 water tanker truck with 58,111 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. 20-45000-02 Replacement - Trailer #T-555 $ - $ - $ 18,000 $ - $ - Replace Unit #T-555, a 1993 trailer that has gone under a number of refurberations. It would be replaced with a new galvanized trailer. 183 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 20-45000-03 Replacement - Cushman Field Dresser #547 $ - $ - $ 27,000 $ - $ - Replace unit #547, a 1994 Cushman field dresser with 3,614 hours. 20-45000-04 Replacement - Large Capacity Mower #11-582 $ - $ - $ 110,000 - Replace unit #11-582, a 2011 Toro Groundmaster 5910 with 2,421 hours. Park & Rec - Proiects 18-45001-01 Annual Miscellaneous Park Projects $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 This is for unforeseen or requested miscellaneous projects that may arise during the year, requested by the public, staff, City Council or the Park and Recreation Commission each year. 18-45001-02 Irrigation Projects - Small Parks $ 25,000 $ 20,000 $ - $ - $ - Irrigate a small park which has playground equipment or other amenities. 2018 - Wild Iris Park and Hills of Bunker Lake West Park. 20-45001-01 Pine Hills North - Phase II $ - $ - $ 400,000 $ - $ - 2020 includes the paving of existing and/or newly created parking lots. Sanitary Sewer 18-48200-02 Lift Station Improvements $ 230,000 $ - $ 650,000 $ - $ - Construction and upgrades to lift stations are necessary to handle increased sewer flow due to new and projected development. Timing of the improvements will be development driven. 2018 - upgrades to Aztec Estates lift station ($110,000 assessed); lift station #4 ($60,000); and lift station #9 ($60,000 assessed). 2020 - Yellow Pine lift station construction ($650,000). 18-48200-03 Replacement - One Ton Utility Truck #69 $ 150,000 $ - $ - $ - $ - Replace Unit #69, a 2006 Ford F450 utility truck with a box and crane that has 128,099 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 18-48300-01 Storm Sewer Improvements $ 60,000 $ 60,000 $ 62,000 $ 65,000 $ 68,000 Each year, areas of the City are identified where improvements are required to maintain our storm sewer system. Maintenance items include replacement of failing culverts, catch basins, and storm sewer pipes, erosion issues at storm sewer outfalls, and dredging of ponds and ditches. 18-48300-02 Replacement - Tymco Street Sweeper #172 $ 235,000 $ - $ - $ - $ - Replace Unit #172, a 2003 Tymco sweeper with approximately 31,646 miles and 2,872 hours. 184 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 20-48300-01 Replacement - Elgin Street Sweeper #169 S - S - S 250,000 S - S - Replace Unit #169, a 2000 Elgin sweeper with approximately 4,836 hours. Streets / Hiehways 18-43100-01 Annual Street Seal Coat Project S 700,000 S 260,000 S 275,000 S 285,000 S 300,000 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. 18-43100-02 Annual Street Crack Seal Project S 150,000 S 155,000 S 160,000 S 165,000 S 170,000 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. 18-43100-03 Annual Pavement Markings S 40,000 S 42,000 S 44,000 S 46,000 S 48,000 The pavement striping for City streets is conducted one time per year. This includes centerline striping and shoulder striping. Striping enhances the safety of the roadway by directing traffic to the correct lane movement. The Federal Highway Administration is currently reviewing reflective standards for pavement markings. In the near future, the City may have to stripe twice per year to meet new standards. If this is approved, it will double the cost of pavement markings per year. 18-43100-04 Annual Curb Replacement S 52,000 S 54,000 S 56,000 S 58,000 S 60,000 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. 18-43100-05 Municipal State Aid Routes / New & Reconstruct S 900,000 S 2,050,000 S 410,000 S 290,000 S 1,080,000 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards: 2018 - 143rd Ave Reconstruction (Xenia to Round Lake Blvd) $430,000 2018 - Crosstown Blvd Overlay (Hanson Blvd to 161 st Ave) $470,000 2019 - University Ave Reconstruction (Andover Blvd to 157th) $750,000 2019 - Hanson Blvd (Jay to Crosstown Blvd) $1,000,000 2019 - Crooked Lake Blvd Overlay ( Bunker Lake Blvd to 133rd Ave) $300,000 2020 - Prairie Road Overlay (Andover Blvd to Bunker Lake Blvd) $410,000 2021 - Jay St Overlay (Bunker Lake Blvd to Hanson Blvd) $290,000 2022 - Tulip St / 161 st Ave Recon (Round Lake Blvd to CR 20) $1,080,000 18-43100-06 Annual Street Reconstruction S 667,000 S 1,163,000 S 1,202,000 S 1,306,000 S 1,560,000 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 185 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 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: 2018 - Andover Bdy Commission Plat 1 / Shirley's Estates 2019 - Area east of Crooked Lake 2020 - Alladin Acres, Enchanted Drive Area 2021 - Xenia St / Vintage St 2022 - Dehns 1st & 2nd Additions, 7th Ave frontage road, Indian Meadows 2nd Addition, Lunds Round Lake Estates 18-43100-07 Street Overlays S - S 350,000 S - S 500,000 S 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. 18-43100-08 Intersection Upgrades S - S 285,000 S - S 2,075,000 S The following are projects that are tentatively identified for improvements and the exact timing is subject to change: 2019 - 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). 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. 18-43100-09 Gravel Road Improvements S 20,000 S 20,000 S 21,000 S 21,000 S 22,000 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. 18-43100-10 Replacement - Lazer Line Painter S 8,500 Replace the 2006 line painter used for parking lot striping and street crosswalks. 18-43100-11 Replacement - Hot Patch Bog #08-180 S 75,000 Replace unit #08-180, a 2008 Spaulding 6 ton patcher. 186 S - S - S - S - S - S - S - S - CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 19-43100-01 Pedestrian Tunnel Under Crosstown Blvd $ - $ 650,000 $ - $ - $ 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 Blvd that could cross under Crosstown Blvd to Sunshine Park or just connect to the City's trail system. 20-43100-01 Replacement - Bobcat S185 #120 $ - $ - $ 60,000 $ - $ - Replace Unit #120, a 2004 Bobcat S185 high-flow hydraulics loader with 1,589 hours. 20-43100-02 Replacement - One Ton Truck w/ Plow #133 $ - $ - $ 80,000 $ - $ - Replace Unit #133, a 2004 Ford F450 dump truck with a 9' snow plow and aluminum box cover with 51,211 miles. 20-43100-03 Replacement - Backhoe Loader #80 $ - $ - $ 100,000 $ - $ - Replace unit #80, a 1998 Caterpillar backhoe loader with 3,223 hours. 20-43100-04 Replacement - Front End Loader #124 $ - $ - $ 250,000 $ - $ - Replace unit #124, a 1998 front end loader with 6,050 hours. 21-43100-01 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. 22-43100-01 Replacement - Dump Truck w/ Snow Removal #198 $ - $ - $ - $ - $ 230,000 Replace unit #198, a 2000 dump truck with snow removal equipment and 56,790 miles. 22-43100-02 Replacement - Aerial Bucket Truck #00-139 $ - $ - $ - $ - $ 200,000 Replace unit #00-139, a 2001 Ford F550 aerial bucket truck with 22,099 miles. Water 18-48100-01 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. 18-48100-02 Replacement - 3/4 Ton Utility Truck #66 $ 60,000 - Replace Unit #66, a 2006 Ford F250 pickup with utility box that has 142,988 miles. 18-48100-03 Replacement - Side by Side UTV #70 $ 48,000 $ - $ - $ - $ - Replace Unit #70, a 2004 IR 5600 Toolcat with 1,291 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 187 CITY OF ANDOVER 2018 - 2022 CAPITAL IMPROVEMENT PLAN 2018 2019 2020 2021 2022 suited for this machine. 18-48100-04 Water Main Improvements $ 664,000 $ 743,000 $ - $ - $ - 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) $144,000 2018 - Andover Boundary Commission Plat 1 & Shirley Estates $520,000 2019 - Area east of Crooked Lake $743,000 19-48100-01 New - Valve Maintenance Trailer $ - $ 70,000 $ - $ - $ - Purchase a valve maintenance trailer consisting of a vacuum for clearing out valve boxes, containment tank and hydraulic extended reach valve operator. 20-48100-01 Water Meter Reading System AMI/AMR $ - $ - $ 1,200,000 $ - $ - 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. 20-48100-02 Recondition & Paint Water Tower #2 $ - $ - $ 1,000,000 $ - $ - Recondition and paint water tower #2 to preserve the water system storage infrastructure. $ 6,378,000 $ 23,712,500 $ 9,135,000 $ 6,864,000 188 $ 5,091,000 Description Governmental Activities General Obligation Abatement Bonds 2012C G.O. Abatement Bonds Certificates of Indebtedness/Capital Notes 2012A G.O. Equipment Certificates 2014A G.O. Equipment Certificates 2016A G.O. Equipment Certificates Subtotal - Certificates of Indebtedness Referendum Bonds: 2010A G.O. Open Space Referendum Bonds Business -Type Activities General Obligation Revenue Bonds 2007B G.O. Water Revenue Refunding Bonds 2009A G.O. Water Revenue Bonds 2016B G.O. Water Revenue Refunding Bonds Subtotal - General Obligation Bonds CITY OF ANDOVER Summary of Outstanding Bond Issues 2017-2018 Outstanding Outstanding Outstanding Date of Rate of at 2017 at 2018 at Issue Maturity Interest Issued 12/31/2016 Retired Issued 12/31/2017 Retired Issued 12/31/2018 12/27/2012 2/1/2031 1.00-3.00% 17,315,000 14,995,000 (855,000) 14,140,000 (870,000) 13,270,000 3/22/2012 2/1/2017 2.00% 585,000 535,000 (535,000) - - 5/29/2014 2/1/2020 1.50-2.00% 1,555,000 1,070,000 (260,000) 810,000 (265,000) 545,000 2/19/2016 2/1/2021 1.90% 520,000 520,000 520,000 (126,000) 394,000 2,125,000 (795,000) 1,330,000 (391,000) 939,000 2/18/2010 2/1/2022 2.00-3.125% 1,660,000 960,000 (150,000) 810,000 (155,000) 655,000 TOTALS $18,080,000 $ (1,800,000) $ $ 16,280,000 $ (1,416,000) $ $ 14,864,000 3/13/2007 2/1/2023 4.00-4.25% 6,570,000 4,505,000 (4,505,000) - - 3/26/2009 2/1/2024 2.00-4.25% 1,025,000 600,000 (65,000) 535,000 (70,000) 465,000 12/7/2016 2/1/2023 2.00% 3,925,000 3,925,000 3,925,000 (615,000) 3,310,000 Notes: (a) Debt service costs on this bond issue are the responsibility of the EDA. TOTALS $ 9,030,000 $ (4,570,000) $ $ 4,460,000 $ (685,000) $ $ 3,775,000 TOTALS $ 27,110,000 $ (6,370,000) $ $ 20,740,000 $ (2,101,000) $ $ 18,639,000 189 CITY OF ANDOVER Debt Service Summary 2018 2019 2020 2021 2022 2023-2027 Governmental Activities General Obligation Abatement Bonds Total 2028-2031 Payments Less Interest Total 2012C G.O. Abatement Bonds 1,211,481.26 1,208,931.26 1,215,981.26 1,212,631.26 1,213,931.26 6,045,162.55 4,849,221.88 16,957,340.73 (2,817,340.73) 14,140,000.00 Certificates of Indebtedness 2014A G.O. Equipment Certificates 278,550.00 278,200.00 277,750.00 - 834,500.00 (24,500.00) 810,000.00 2016A G.O. Equipment Certificates 134,683.00 135,260.50 134,790.50 135,273.00 540,007.00 (20,007.00) 520,000.00 413,233.00 413,460.50 412,540.50 135,273.00 1,374,507.00 (44,507.00) 1,330,000.00 Referendum Bonds 2010A G.O. Open Space Referendum Bonds 176,841.25 177,507.50 172,827.50 172,870.00 172,656.25 872,702.50 (62,702.50) 810,000.00 1,801,555.51 1,799,899.26 1,801,349.26 1,520,774.26 1,386,587.51 6,045,162.55 4,849,221.88 19,204,550.23 (2,924,550.23) 16,280,000.00 Business -Type Activities General Obligation Revenue Bonds 2009A G.O. Water Revenue Bonds 89,492.50 87,130.00 89,498.75 86,592.50 88,492.50 172,058.75 613,265.00 (78,265.00) 535,000.00 2016B G.O. Water Revenue Refunding Bonds 687,350.00 694,850.00 697,000.00 693,900.00 695,550.00 696,900.00 4,165,550.00 (240,550.00) 3,925,000.00 776,842.50 781,980.00 786,498.75 780,492.50 784,042.50 868,958.75 4,778,815.00 (318,815.00) 4,460,000.00 2,578,398.01 2,581,879.26 2,587,848.01 2,301,266.76 2,170,630.01 6,914,121.30 4,849,221.88 23,983,365.23 (3,243,365.23) 20,740,000.00 190 CITY OF ANDOVER Computation of Legal Debt Margin December 31, 2017 (Unaudited) Estimated Taxable Market Value (Note A) $ 2,636,599,713 Debt Limit: 3% of Market Value 79,097,991 Total Bonded Debt $ 20,740,000 Less: Non -Tax Levy Supported Debt: (Note B) G.O. Revenue Bonds 4,460,000 Total Debt Applicable 16,280,000 Less: Balance Available in Related Debt Service Funds 951,895 Net Debt Applicable 15,328,105 Legal Debt Margin $ 63,769,886 Note A: Source: Anoka County Property Tax Division Note B: The computation on legal debt margin only includes debt supported by a tax levy. IID CITY OF ANDOVER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Collected Within the Fiscal Year of Levy Total Delinquent Total Market Value Collections In Total Collections to Date Tax Tax Homestead Total Percentage Subsequent Total Percentage Year Levy* Levy Credit Collected of Levy Years Amount of Levy 2007 $ 9,316,427 $ 8,738,606 $ 410,519 $ 9,149,125 98.20% $ 152,792 $ 9,301,917 99.84% 2008 10,153,718 9,554,131 198,214 * 9,752,345 96.05% 182,778 9,935,123 97.85% 2009 10,593,520 9,992,240 54,629 * 10,046,869 94.84% 148,000 10,194,869 96.24% 2010 10,856,299 10,125,752 3,905 * 10,129,657 93.31% 176,736 10,306,393 94.93% 2011 10,856,299 10,119,681 853 * 10,120,534 93.22% 135,361 10,255,895 94.47% 2012 10,631,299 10,460,838 2,354 10,463,192 98.42% 116,930 10,580,122 99.52% 2013 10,631,299 10,535,521 1,246 10,536,767 99.11% 89,261 10,626,028 99.95% 2014 10,843,925 10,776,635 - 10,776,635 99.38% 65,574 10,842,208 99.98% 2015 11,143,925 11,054,157 - 11,054,157 99.19% 55,526 11,109,682 99.69% 2016 11,593,925 11,525,770 3,461 11,529,231 99.44% 4,003 Not Available 155.33% 269,754 80.75% 2016 * Included in the total tax levy is approximately $400,000 of market value homestead credit (MVHC) that the City will not be receiving. Due to State legislative actions to deal with the State budget deficit, the MVHC program was significantly reduced for the City. 100.38% CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Note: (1) Only includes assessments certified to Anoka County. 192 Total Delinquent Collections Assessments 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 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% 2016 267,704 510,275 190.61% 2,153 512,429 191.42% 268,716 100.38% Note: (1) Only includes assessments certified to Anoka County. 192 CITY OF ANDOVER, MINNESOTA PRINCIPAL TAXPAYERS Current Year and Nine Years Ago (Unaudited) Note: (1) Also includes agricultural, public utility, railroad operating property, and personal property. 193 2016 2000) Net Percentage of Net Percentage of Tax Total City Tax Total City Taxpayers Capacity Rank Tax Capacity Capacity Rank Tax Capacity Minnegasco, Inc. $ 237,504 1 0.88% $ 138,040 5 0.52% Connexus Energy 193,514 2 0.72% 222,128 1 0.83% Great River Energy 173,276 3 0.65% Presbyterian Homes of Andover 160,143 4 0.60% 155,680 4 0.58% Walmart Real Estate Business Trust 160,096 5 0.60% Target Corporation 154,668 6 0.58% 212,312 2 0.80% Andover Limited Partnership 124,754 7 0.46% 158,554 3 0.60% DST Properties LLC 103,640 8 0.39% Andover Station LLC 102,150 9 0.38% 99,624 7 0.37% Columbia Park Properties 77,696 10 0.29% 116 LLC 128,338 6 0.48% United Power Association 84,760 8 0.32% Grey Oaks Inc. 73,692 9 0.28% Rademacher Family Ltd Partnership 64,440 10 0.24% Total $ 1,487,441 5.54% $ 1,337,568 5.02% Net Tax Capacity $ 26,847,273 $ 26,643,635 Source: Anoka County Property Tax Division (') Data from 9 years ago (2007) not available. CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) Estimated Market Values New Construction Commercial / Commercial / Industrial Residential Year Industrial (1) Residential Total Permits Value Permits Value 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 2016 181,926,900 2,530,046,700 2,711,973,600 7 14,009,200 111 28,893,036 Note: (1) Also includes agricultural, public utility, railroad operating property, and personal property. 193 CITY OF ANDOVER, MINNESOTA DEMOGRAPHICS (Unaudited) U.S. Census 2000 2010 Population 26,588 30,598 Households 8,205 10,091 Household Size (Population/Household) 3.24 3.03 POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) Percent of Change 2020 Est (1) 2000-2010 33,400 15.08% 11,000 22.99% 3.04 -6.43% Populaton by Age (2010 U.S. Census): Persons Percent 4 and under 1,737 9.2% 5 - 9 2,620 10.6% 10-14 3,032 10.4% 15-19 2,807 7.6% 20-24 1,410 3.7% 25-34 2,887 14.5% 35-44 4,922 22.0% 45-54 5,932 13.1% 55 -59 1,803 4.1% 60-64 1,393 2.0% 65-74 1,409 1.7% 75-84 454 0.8% 85 and over 192 0.3% Total population 30,598 100.0% Total female population 15,074 Total male population 15,524 2010 median age 31.9 yrs City of Anoka State of Andover County Minnesota Income Statistics: 2011 per capita income $ 32,615 $ 29,894 $ 30,656 2011 median household income 89,803 69,139 59,126 2011 median family income 94,159 79,587 74,032 2012 median gross rent 1,165 937 802 2012 median value owner occupied housing 242,300 203,700 194,300 (1) Source: Metropolitan Council 194 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 Tvne of Business / Product Elementary and secondary education Healthcare County government and services Transportation Retail Youth organization and fitness center Retail County government and services Regional park and recreation Grocery store 195 1974 Plan A 206 43 78 119 98 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. 196 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. 197 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 198 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. M 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 Typical objects of expenditure include- - personal services (salaries and wages); - charges and services (utilities, maintenance contracts, - supplies and materials; and, - capital outlay. upon the types or categories of goods and services purchased. travel); 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. 200 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. 201 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. 202