HomeMy WebLinkAboutBudget - 20182018
Annual
Operating
Budget
2
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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
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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.
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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.
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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)
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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.
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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
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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.
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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;
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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
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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
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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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:
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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