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Home My WebLink AboutBudget - 2019 567 6789567895678904 7777808182838488888909193999991001011021031101010 ............................................. ........................ All ............ ance lance e ................ .................... ...................... ........................................................................................................................................................................ .................................................. ............................. ............................... ................................................................................................ ................................................................................................ ................................................................................................ ................................ Changes in Fund Balance ................................ ................................ and Changes in Fund Balance ................................ s ands and Changes in Fund Balances and Changes in Fund Bals and Changes in Fund Bas and Changes in Fund Balances ....................................................................................................................................................................................................... ......................... ................................................................ ................................ ................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................ ................................ ................................ ................................ ....................................................................................................................................................................................................... ......................... ................................................................ Preservation ................................ ................................ ................................................................................................ view ................................................................................................ ................................................................ & Recreation Protection Special Revenue FundsStatement of Revenues, ExpenditureFund OverviewStatement of Revenues, ExpenditureFund OverviewStatement of Revenues, ExpenditureFund OverviewStatement of Revenues, ExpenditureFund OverviewStatement of Revenues, ExpenditureFund OverStatement of Revenues, ExpenditureFund Overview imal Control acilities Management FPolice ProtectionFire Protective InspectionEmergency ManagementAnStreets & HighwaysSnow & IceStreet SignsTraffic SignalsStreet LightingStreet Lights BilledParks Natural Resource RecyclingUnallocated DefinitionStatement of Revenues, Expenditures and Changes in Fund BalancEconomic Development Authority FundCommunity Development Block Grant Fund Community Center Fund Drainage and Mapping Fund Lower Rum River Watershed FundForestry Fund General Fund (Continued) Special Revenue Funds Table of Contents 34578845678945 123303333340404142455051525354555657561636666667071727377 Annual Operating Budget . CITY OF ANDOVER ... 9 ..... .............. ................ .................. .................... 201 ........... ........................ ................ ................. .................................... nce .................... ..................... .......................................................................................................................................... ........................ unds ...................................................... ................................................................................................................ ............................................................ nd Summary ............................... ................................ ................................ ................................ ................................ ................................................................ 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Reporting s and Changes in Fund Bala ................................ and Expenditures Fuand Expenditures by Fund Type ................................ ................................ By De ................................ ................................................................ ................................................................ ................................................................ ................................ ................................ General Fund Revenues Revenues and Expenditures All FRevenues ................................ ................................ General Fund nd Financial ................................ ................................................................................................................................................................ ement Budget ................................ ................................................................ ................................................................ ................................ ................................ ................................ ................................ il Resolution Adopting Budget ................................................................ ................................................................ ................................ ................................ ure Comparison Resources etter FTE SummaryCapital Improv Budget Development CalendarBudget Summary by Fund TypeBudget Summary Budget Summary Budget Summary nue Comparison ions 9999999 Public Official ListingOrganizational ChartBudget MessageCity CouncValues and GoalsBudget Development Process201Accounting, Auditing aOperating Budget PolicyRevenue PolicyCapital Improvement PolicyDebt AdministrationInvestment PolicyRevenue Projections201201201201ReveExpenditExpenditure Budget Summary 201201DefinitionStatement of Revenues, ExpenditureMayor & CouncilAdministrationNewslHu man AttorneyCity ClerkElectFinancial AdministrationAssessingInformation SystemsPlanning and ZoningEngineering Introduction General Fund 67894567894567 33334041424344444505152535555 11111111111111411111111 ....................................................... Balance ....................................................................................................................................................................................................... ................................................................. n Fund Balance es in Fund nges in Fund Balancenges in Fund Balance anges in Fund Balance Changes iCha and Changes in Fund Balanceand andand Chand Changes in Fund Balanceand Changes in Fund Balanceand Chaand Changes in Fund Balanceand Changes in Fund Balance ....................................................................................................................................................................................................... ......................................................................................................................................................... ....................................................................................................................................................................................................... ......................................................................................................................................................... Revenues, Expenditures iew view . Capital Improvement Plan Bonds Abatement Bonds G.O G.O Statement of Revenues, Expenditures and ChangFund OverviewStatement of Fund OverviewStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund OverStatement of Revenues, ExpendituresFund OvervStatement of Revenues, Expenditures and Changes in Fund BalanceFund OverviewStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund Overview 8A9 Sewer Trunk Fund Storm Sewer Fund Road and Bridge Fund Park Dedication Projects Building Fund Trail & Transportation Capital Equipment Reserve 201 201 Tax Increment Projects Permanent Improvement Revolving Capital Projects Funds (Continued) 89578945678945 Table of Contents 1011121312021222322313333 101011111111111111112121212111111 Annual Operating Budget CITY OF ANDOVER 9 .................................................. ................ AllAll 201 ............. alance .................. ....................................................................................................................................................................................................... ......................................... und Balance ement Plan Bonds s in Fund Balances in Fund Balance Bonds nges in Fund Balance ................................................................ ................................ ................................ nd Changes in Fund Balance and Changes in Fund Balanceand Changes in Fund Band Changes in Fund Balanceand Changes in Fund Balanceand Chaand Changes in Fand Changes in Fund Balance Open Space Referendum Bonds Abatement s ....................................................................................................................................................................................................... ......................................................................................................................... G.O. Equipment CertificateG.O. Equipment CertificateG.O. Equipment Certificate itures and Change G.O. Capital Improv G.O. AAA nditures 246 8A 1 12C ................................................................ 20201201 Expenditures 201202010A G.O. ................................ ................................ ....................................................................................................................................................................................................... ......................................................................................................................... Bonds ts Funds iew verview ................................................................ OverviewOverview Statement of Revenues, ExpenditureFund Statement of Revenues, Expenditures aFund OStatement of Revenues, ExpendituresFund OverviewDebt Service FundsStatement of Revenues, ExpendFundStatement of Revenues, Expenditures and ChangeFund OverviewStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund OvervStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpeFund OverviewCapital ProjecStatement of Revenues, Fund Overview ificates / Capital Notes Right of Way Management / Utility FundCharitable Gambling FundConstruction Seal Coating FundDefinitionStatement of Revenues, Expenditures and Changes in Fund Balance CertCertificates / Capital Notes Certificates / Capital Notes General Obligation Bonds General ObligationGeneral Obligation Bonds DefinitionStatement of Revenues, Expenditures and Changes in Fund Balance Water Trunk Fund Special Revenue Funds (Continued) Debt Service Funds Capital Projects Funds 923456792345789345566789 Table of Contents 56166666667177777792 1111111111111111171191919191919191919 Annual Operating Budget .. CITY OF ANDOVER 9 ......................... ....... e ........................ All 201 ............. ................ ................... .................... d Balance ....................... ................................................................................................................................................ .......................... ........................... ............................ .............................. ................................ ................................................................ ................................ nges in Fund Balance ................................................................................................ ................................ Changes in Fund Balanc ................................ ................................ and Changes in Funand Chaand Changes in Fund Balanceand Changes in Fund Balance ................................ s and ................................................................................................................................................................................................ ................................ ................................ ................................ 3 ................................ 2 ................................ ................................and Households................................ 20 - nt Plan Development Calendar 9 ctions ................................................................................................ 201 ................................ ................................ Operating Transfers ................................................................................................................................................................................................operty Values al Debt Margin ................................ ce Funds 9 iew view utstanding Bond Issues................................ sment Levies and Collections 201 Capital Improveme 3 ................................................................ 2 Tax Levies and Colle Sewer Fund y of O 20 utation of Leg re Debt Service Requirements All Enterprise FundsStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpenditureFund OverStatement of Revenues, ExpendituresFund OverviewInternal ServiStatement of Revenues, ExpendituresFund OverviewStatement of Revenues, ExpendituresFund Overv 9 scellaneous Statistical Data DefinitionStatement of Revenues, Expenditures and Changes in Retained Earnings Water Fund Sanitary Storm Sewer Fund DefinitionStatement of Revenues, Expenditures and Changes in Fund Balance Central Equipment Maintenance Fund Risk Management Budget Year 201Capital Improvements Plan SummarFutuCompProperty Special AssesPrincipal TaxpayersBuilding Permits, PrDemographicsMiGlossary of Terms Enterprise Funds Internal Service Fund Appendix This page left blank intentionally. Mayor Fire Chief Building Official CouncilmemberCouncilmemberCouncilmemberCouncilmember City Administrator / City Clerk Community Development Director 1 Director of Public Works / City Engineer Adopted 2019 City Budget CITY OF ANDOVER Joe Janish Fred Patch Julie Trude Jerry Streich Sheri Bukkila Jim Goodrich Michael Knight Valerie Holthus David Berkowitz James Dickinson 2 Organizational Chart CITY OF ANDOVER 2019 , 4 March hearing ides statistical public e organization will City Levy on September before the 9 7 planning sessions on 1 2 - Levy occurred on December 9 1 5100 - . In response to these requirements, a 8 1 and residents. In addition to the financial , 20 , and November (763) 755 3 30 City Budget and 20 GOV 9 , October 2 1 5 3 n Division by September WWW.ANDOVERMN. in advance of this deadline. Council held budget ANDOVER, MINNESOTA 55304 8 1 8923 INTRODUCTION - , 20 8 1 to discuss budget priorities and adopted the preliminary 20 1 2 . 8 1 FAX (763) 755 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue organization. Additionally, state law requires that Council approve a preliminary budget and certify a , and August 9 4 1 . 8 1 . 8 8 1 , July 2 1 City Budget , 20 6 4 9 1685 CROSSTOWN BOULEVARD N.W. , 20 1 , 20 4 28 r presented to Council on September , June 2 2 2 2 C. Major Areas of Accountability requires the City Administrator to submit an annual budget to Council, which accurately Mayor, City Council Members and Residents of AndoverJim Dickinson, City Administrator / Finance DirectorAdopted 20December - May 6 - , 4 . Additional budget discussion was held with the Council on September 2 8 1 . The official adoption of the 20 April 2 8 ,, 201 78 TO:FROM:SUBJECT:DATE:City Code 1reflects the financial needs of the City proposed levy to the Anoka County Property Records and Taxatioproposed budget was 21that was held on December 20on or before DecembeThis budget document should be viewed as more than just a collection of financial data, but as the financial plan in which thimplement and accomplish Council policies, as well as meet the articulated needs of the community data contained within, this document includes information on the City organization, describes programs and services, and provvalues measuring activity performance and workloads. Most importantly,objectives regarding services to be provided in 20 e was storical n Anoka time, the ge form of eir specific he Andover th a swamp, and d the allocation of as considered a part of before train tracks were ever built in - his in a fair, impartial and balanced manner pervisors then voted in favor of proceeding with the incorporation Anoka County Union Newspaper 4 GENERAL INFORMATION the Great Northern Railway was in the process of constructing railroad tracks from the om the Andover train station. new stations (from Coon Creek to the North, along the new railroad line) were to be named Andover, Cedar, Bethel, off to the North. The railway announced that new railroad stations with mathematical precision were to be located five miles - Where the railway came up with the name Andover still remains unknown. n. As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of service needs, prioritized spending requests to achieve the most effective operational delivery of services, and then balancethat meets with the approval of Council and the residents we serve.changedthat year, and the town name was changed to reflect Senator Grow because of his strong advocacy of the Union cause. At that population was 330 and included the geographical area we know today as Ham Lake. In fact, the area of Ham Lake wGrow 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 villagovernment would provide better services to the community. Board suinterest. The historical interest, we believe, came frname Andover first appeared in an article dated March 14, 1899 in the the city.The article stated that the Eastern Minnesota line ofCoon Creek Cutapart from each other. TheIsanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4, 1899, the first train passed through tstatio General 9 1 . . , used by City Staff 8 1 crease in total taxable term competitiveness e - %. in 7 . , 20 1 3% % of planned 20 68 45 . 5 April cash flow designations approaching 50% , effective replacement schedule is followed. - at no less than adopted General Fund budget 8 positioning the City for long based replacement schedule. - and ing the current City tax rate by fund balance budget exceeds this guideline, also emergency fund balances 9 increas gross tax levy and a commitment to a detailed city debt analysis to organization . The 201 5 . % of the with a brief description of the outcome of each guideline as part of the budget 5 enditure limitations in the 201 80% of the total General Fund revenues fit analysis rather than a year class city. - BUDGET GUIDELINES of the gross tax levy close to % to meet the needs of the 15 . 6 1 Budget Development guidelines established by the City Council on was 9 debt levy to no more than 2 1 ng it as a second 9 e condition of capital equipment to ensure that the most cost evy revenue enhancements or exp 1 rces and operational efficiencies.nues making up Capacity Rate reservation of emergency fund balances (snow emergency, public safety, facility management and information debt l Property Tax Levy that was approved estimates 9 9 201 and the p The 201 Anoka County Assessor taxable market value figures for the City of Andover are reflecting a adopted appropriate he T With property tax reve The sustainable revenue sou ing A commitment to a City Tax usNote: market value.A fiscal goal that works toward establishing the General Fund working capital Fund expenditurestechnology) through targeting Note: would be (approximately 3% of planned General Fund expenditures) are in place to stabilize a situation and not be a complete solutionA commitment to limit the 20Note: A comprehensive review of thEquipment will be replaced on the basis of a cost bene Andover Village was established in 1972 and then became the City of Andover, a city of the fourth class, in 1974. Today the population exceeds 20,000, classifyiwhile preparing their proposed operating budgets, and presentedprocess:1)2)3)4) a the ed requir ure that key and financing through 2006. has 2000 The City has taken . . This a commitment to being expenditures between to the City Council as part of the term operational, staffing, infrastructure and effective manner. - - City Council meeting. 8 recommendations and national economic factors nd long term impacts of present day in a cost - , 201 7 ber has made to regional and Novem , and to do so in 2015, with a final Council Community Vision and Organizational 6 implementation of Council policies and goals, and Direction provided in that document is being integrated into various department cil. funding and a complex set of financial data including growth factors, tax capacity valuations, per capita term fiscal projections. - identify anticipated trends in community growth and financial resources that will help designate mmittee performed this analysis SIGNIFICANT EVENTS OF THE CURRENT YEAR Co ng cities in terms of population growth in the Twin Cities metropolitan area special attention to fiscal values, commercial & residential development/redevelopment, collaboration session was held with the City Council d i a . idential development has slowed and is attributable p gets are in line with long planning term financial models that - changing community conditions, concerns and demands Capital Improvement Plan (CIP) that was adopted at the to 3 one of the fastest growi 2 f long the pace of res Management 20 , A strategic The City Vehicle Purchasing The City continually maintains various financial models to determine the long term fiscal tar was utlook on where growth is most likely to occur in contrast to previously determined urban services staging areas - 9 sponsive Note: 201The use oappropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensshortNote: decisions. Fiscal assumptions are based uponspending and budgets.Continued commitment to strategic planning targeted toward meeting immediate afacility needs.Note: Goals and Values document approved by the City Counwork plans and budgetsA management philosophy that actively supports the reNote: opportunities, service delivery and the livability/image of the community. ince 2006 5)6)7)Andover Srevised o - f nd ther rized by Trails and throughout uddy Paws Many o More detailed , M year. . the prior 716 rental licenses issued , family building permits with a total tenant buildings 847 - - , 7 2 single family new single 0 . 6 58 2 Growing Generations constructed a new 10,450 square 640 square foot building into a pet daycare. , . close to were the City issued : , 8 1there . 7 , pply of 196 urban lots and 32 rural lots (which includes the lots above). 20 include developments. Also 24 rural lots were approved in a development known as In 8 1 th message ,847,716 for the preceding year throughout the community rental housing license program to provide property owners/landlords with educational nstruction. Right of Way clearing and utility work has taken place in 2018 with full family building permits with a total valuation of $ - Avenue NW and repurposed the 5 family building permits with a total valuation of $19,703,857 compared to 94 new single - st family - inspect and maintain the exterior of the property, a list of potential ordinance violations that may and is reviewed annually o be constructed as part of the project. new single Fitness opened a facility within a new multipurpose building that is 11,941 square feet ew residential development single 94 dover and did extensive tenant finishes or remodels in existing multi saw n cil in 2009 commercial construction Fitaholic , again compared to . came to An 8 302 , also mplementation of a the City care facility - , , the City saw 904 , 8 18 $ Ongoing imaterials and checklists on how to occur with a rental property, and an exterior inspection of the building and grounds with city staff. This program was authothe Andover City Counthe City in 201In 201Addition, Winslow Cove and White Pine Wilderness 4the Preserve at Petersen Farms. The City currently has a suIn 2018, the City issued 60 new singlefamily building permits with a total valuation of $27In 2018foot dayacquired a vacant building at 3121 161businesses In 2017 and 2018, the City of Andover, in cooperation with the Anoka County Highway Department, worked through the planning othe Hanson Boulevard expansion and recoconstruction to start in 2019, completion is anticipated 2020. This project will be financed primarily by a federal grant. intersection improvements will als 1)2)3)4)5) City to identify alternate locations for sewer supported growth.valuation of information is available on City growth later on in this budget Some additional noteworthy events/activities that occurred in 20 ea was to a It is Both another restored family homes - adding It is anticipated plex in 2018. - is being among the projects is an through 2018. d Priority ed to go out for bid in early 2019. . continue and one additional 4 in 2018. the building and replace it with a 120 person to prepare for the facility needs for the ultimate is anticipat 6 1 nside as well as the outside. The project will be started with the first phase of construction completed the plex property in November of 2011 to start the - ng in 20 Public Works, Public Safety, General Government and 2016 plex properties o architectural firms to start the design for a Public Works - for bid in late 2018 and is anticipating a bid award in early late emodeli r in rd of Soil and Water Resources on a wetland restoration of the old onds was the outcome. The remaining acreage 8 ditions and plexes a year for the next few years. - of the City Campus site including the addition of a boardwalk of the ad bids were received In 2017, the City hired tw million in additions totaling 67,000 square feet, and other improvements 30 design has continued throughout 2018 and $ acquire two 4 Phase 1 . concept layout successful in acquiring three more 4 close to removal of 12 portable classrooms. The school was originally designed for 1,400 students, but today planning continue to s. The EDA was successful in acquiring one 4 master planning concept layout provides for the work with the State of Minnesota Boa receive and the with hopes of continuing to add to the critical land mass necessary to start marketing for a redevelopment EDA went through the public hearing process in 2011 to modify the City Development Plan to create needs of the community. will essthe master started c of 2017. Other restoration elements long term of the City. The working with the Anoka County Parks Department, two new outdoor gathering spaces at the Bunker Hills Activities Center completed and fall , , City Staff 6 ummer In 2018 Andover High School5,700 square feet of space in the schooladdition to the building 1,700 students attend the school. The projects will bring the started construction. The first area will remove the current ramps on the south side of capacity deck. This will provide additional space for meetings, family gatherings, weddings, and other events. The second arconverts the existing greenhouse into an exterior patio area accessible from the icomplete in the spring of 2019.The City of Andoverredevelopment areas of the community and to facilitate the opportunity to acquire dilapidated and substandard multiwithin specified target arearedevelopment proproject. In late 2017 the EDA wasanticipated that the EDA will In 201Woodland Creek Golf Course parcel. The City acquired the old 74 acre golf course in late 2013, subsequently a 6 acre parcel sold to a developer and a 6 unit subdivision called Shadow Pwetland with passive nature trails. ConstructionsThe City build outRecreational Maintenance Facility, cold storage building and to explore a potential expansion of the Andover YMCA/Community Center.projects completed design in 2018. The Public Works component was out2019. The Community Center Expansion 6)7)8)9)10) In se . the City , 8 data storage In 201 through in Anoka County appliance or electronics consecutive year receiving residents. staffing th . was awarded the Government materials 7 een t 1 40 reduce six Andover saw increased growth in the number of will also achieve this award. recyclable 8 the City 1 he City t , 8 Approximately such as paper shredding and . aging documents retained, this includes standard and has helped im In 201 ly sulting fees. This is the per person for all s te has expedited City research projects final Council Community Vision and Organization Goals and Values and 9 , a The imaging project the process of digital ons guide, as a financial plan and as a communications device. on expand the current recycling opportunities for , generally with a specific focus, 8 ) to 1 of Andover was awarded the Government Finance Officers Association Distinguished financial management software to improve reporting and operating efficiencies. The the highest recycling ra rm of reduced financial con The 2019 Budget does provide for a new strategic planning process in early 2019. Financial Report (CAFR) for the year ended December 31, 20 . on weekends updates to our e July 7, 2015 City Council meeting. Direction provided in that document is being integrated into various significant progress eliminated the need for office expansion a new Recycling Center year in a row, the City , continue to have one of recycling events ( added tation Award for the City's 20 eenth t City continues to make even continue to yield reduced personnel costs and more timely reports. s monthly the , 4 Andover residents 201hostedcollection.A strategic planning session was held with the City Councildocument was approved at thdepartment work plans and budgetsThe City's Comprehensive Annualrecognized significant cost savings in the foFor the Budget Presenbudget document as a policy document, an operatiThe City legal documents and large construction plan documents. retrieval efficienciesThe City continues to utilize updatesonline and counter credit card payments for various City permits and servicespermits were done online. 11)12)13)14)15)16) 9 1 226 , the , ed to 32 used to 1 received as creased $ from capturing any de % for the prior year. , capital improvement s significantly limited 88 . 2 wa 1 In 2015, the City 3 as notified by the State 1 ed Andover and the increase in the cost of health % from 15 . 6 abatement bonds prevent 1 that have to meet anticipated budgeted expenditures in the 046 , the decertification of a tax increment financing district equipment notes, 378 , but wo , t 11 s over last year. Designated capital operating levies , the City received zero LGA funding; dealt with significant state aid cuts in Market Value Homestead Credit The availability of additional tax levy in 20 increase in 10 178 , the OVERVIEW 430 and 2018 enacted by the State Legislature tax base. taxable market value s In 2014, LGA was reinstated for the City and that funding ($73,490) w in conjunction with corresponding expenditures for those years. The Adopted 20 . 8 creases the City debt ratio to gross City levy to apital Projects Fund for street improvements/replacements. 1 in 2017 in Debt Service Levy includes ; fund balance is planned. As a result, total General Fund balance reserves are project 9 1 levy limit expanding decreasing ; and % in 20 8$2,698 . tight , since 2003, the City has and are as follows: 6 , (use of) ed 6 3 . The 20 1 in 20 788 previously rease in expenditures of $ , inc . 041 , n 9 2 a decrease as compared to in 201 trends since 8 1 , thus 493 Budget anticipates General Fund revenues in the amount of $ , ; in 2016, the City receiv 9 1 % in 20 695 2 , . t expenditure 1 2 1 6 and the open space referendum bonds and Local Government Aid (LGA) . In those decreases to a net overall increase of .41% bringing the balance to $ new market value exclusion program crease in General Fund expenditures is primarily related to d 9 in crease to eneral Fund Budget represents a The Adopted 20amount of $deGin 201plan bondsThe insurance(MVHC)by the negatehelp offset the growing needs of the Road and Bridge Czero LGA fundingCity will be receiving zero General Fund adopted tax levy (this rate comparison 8 in the 1 e creas in % for 20 an 627 . 34 %, which compares to 224 . 5 3 tax capacity rate is reflective of 11 creasing . in 9 1 . The 20 . by Met Council estimates were do not include the open space and watershed levies. s growth in the tax capacity values the Adopted Budget provides for an adopted tax capacity rate of 9 1 The population figures The tax capacity rate Note:The 20excludes the open space and watershed levies)minimized byNote: he under ; with , % of t that come 35 . maintenance. 10 /decreases projects . capital dedicated to street overlays new tax capacity growth to ), Pedestrian Trail Maintenance 857 , 0 in 2019 ents approximately 788 , 945 park related 254 1, such as facility maintenance projects help fund many maintenance related repairs , ion, the City, over time, will be able to build a fund range of facility maintenance and equipment needs. - miscellaneous designat and increased by $300,00 is for transportation programming related to maintaining City Road and Bridge ($ of this levy is dedicated towards pedestrian trail ,000 is designated to underwrite a wide range of capital ) ,000 of the general tax levy to capital projects and equipment needs ,000 is designated to levy. 00 788 275 . ,75 8 ,0 ,000), This reduction is due to the $525,000 being reallocated towards debt 355 788 2 , to address a wide 356 levy is designated for according to the City Council budget guidelines. 10 355 01 8 12 0 ew for 2018 0 1 , 0 levy. 2 0 , % ($20 8 15 52 . the annual $2 changed range of capital improvement needs 7 It was n - expansion project. . As a percentage, this funding commitment repres ignation of the tax levy to anticipated City needs and priorities for transportation and trail his designated levy is compared to the T s a a city campus Approximately his commitment was initiated by the City Council in 1997 and increased from one percent to two 774 , levy remains the same as the 201 . T 7 9 8Under the Capital Projects Levy, Under the Capital Projects Levy, $ ). Specific des Facility Maintenance Reserve ($ Budget are as follows: ,000 as compared to the 201 0 9 0 25 Budget specifically designates $ 1 0 , 9 The 201 ,000), 115 Under the Capital Projects Levy, $ r. increased $ 275 Under the Capital Projects Levy, a total of $1, creased $5 The 20 tax capacity growth during 2006 de ge levy 9 ties. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases 1 931 , ) and Park Projects ($ 08 Road and Bridstreets, roadways and pedestrian trails. $3pursuant to previous Council direction of designating a one percent tax levy and capturing two percent of transportation infrastructure needspercent of new Gross Tax Levy and Park Improvementsup throughout the yeaCapital Equipment/Projectsimprovement/equipment project expenditures. Through a more controlled spending environment. The 20service as it was originally planned for Facility Maintenance Reserveidentified in the recent facility condition assessment. 000 , 2 10 Some highlights of the Adopted 20Capital Projects Levyrelating to Capital Outlay ($($maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the publicspending prioriCapital Outlay, Pedestrian Trail Maintenance and Park Levies Patrol Budget 9 1two rograms) The 20 . ) 084 , homelessness p 130(youth services)(domestic abuse programs)( position. ity Service Officer, . contribution (youth services) (youth services)(domestic abuse programs)(youth services)(youth services)(youth services)(mental health services) budget 8 program program contributionprogram contributiondonation (youth programs)program contributionprogram contribution (homelessness programs)program contribution (homelessness programs) % general increase ($ General Fund budget: ------- 26 9 . ntribution 1 4 over the 201 membershipmembershipprogram contributionprogram contributionprogram contributionprogram contributionprogram contributionprogram contributionprogram co --------- budget in other funds: 9 1 ($5,681) 13 8 660000 01051353281 ritable Gambling Fund ,,,,,000,,500 598581 hours per day of service provided by a Commun 1112 $$$ 3,$$$$10,000$$Charitable Gambling FundCharitable Gambling FundCharitable Gambling FundCharitable Gambling FundCharitable Gambling FundCharitable Gambling Fund Cha six JPA - 00000000 000 ,, 231, a 3.00% general increase $$16,400$$$ 3,000$ 9$ 1,000 The following are included as part of the 20 are included as part of the 20 ) reflects /contributions s Association hours per day of patrol service, 80 City Partner Fee Program FundingFunding (YMCA) Central Center for Family Resources Water Safety Program memberships School Liaison Officers in the middle and high school, and 50% of a Crime Watch , Anoka County Community Consortium s The City Attorney budget - North Metro MayorMetro CitiesMediation ServicesYMCAAlexandra HouseYouth First (NWTeen Center Funding (YMCA)Lee Carlson Youth First Teen CenterAlexandra HouseSenior High PartiesFamily of PromiseStepping StoneHope for Youth maintains the existingInvestigatorAttorneyCouncil Memberships and ContributionsThe following care - s, Jon o be an day with other cost of living % tenant buildings - 75 . 2 square foot There will als 640 square foot building , and a year the City will be offering tions are to be maintained at an th f ion to increase seating and better . twel for eligible employees among the projects is an addition to the building to Avenue NW and repurposed the 5 students and school/community programs with opportunities st Priority step changes based salaries in detail to confirm competitiveness -. Employer health care contribu 9 Growing Generations constructed a new 10,450 OWTH in 201 includes . 14 9 8 d 15% or 201 f CITY GR does not include any additional full time staffing increase package emodeling started in 2018. r Budget 9 classroom expansion, group learning space, staff planning areas, additional student lockers; ORGANIZATIONAL MANAGEMENT , Fitness opened a facility within a new multipurpose building that is 11,941 square feet at 1714 e to Andover and did extensive tenant finishes or remodels in existing multi million in additions totaling 67,000 square feet, and other improvements to another 5,700 square 30 $ The 201 dditions and Fitaholic a total compensation close to end family coverage and 100% of the single coverage. This will be the - NW. The Muddy Paws acquired a vacant building at 3121 161 Phase 1 . reet receive Premiums for health insurance NW er businesses that cam is to . secure learning environments through the removal of 12 portable classrooms. The school was originally designed for 1,400 Administration and Human Resources continually review position in 2019 5216 Bluebird St . nt entities. For a few positions to remain competitive with other governmental entities, budget has been included for salary Living Adjustments - of - Staffing and Staffing Cost ReallocationCostadjustmentgovernmeadjustmentsHealth Insurance Costsemployer ratio of 76% of the lowa high deductible insurance plan with a health savings account (HSA). New institutional/commercial/industrial construction did occur in 201facility at 1Bunker Lake Boulevardinto a pet daycare. Othinclude: Realty One Group, State Farm Insurance Group, FedEx, Dominos Pizza, Dettinger Pinewski LLC, Andover Karate, Milk MomSmith SuAndover High Schoolfeet of space in the school.create safe andexpansion of administrative and guidance areas to support the expanded capacity; and an auditorium expansserve the increased student capacity and community. last area first area ess storage census shows family building - 10 20 ntenance costs. The e h T ies Center. The new single 94 The City currently has a supply family dwelling permits in - be complete in the spring of 2019. ng greenhouse into an exterior patio compared to Bunker Hills Activit 857 , 703 Addition, Winslow Cove and White Pine Wilderness , nd 19 7 5 demand for City services and has significantly added to 23340 60629 132 started in 2018 and will and e Preserve at Petersen Farms. % Change s Glen 2 rebound 15 replace it with a 120 person capacity deck. This will provide additional 0 3 The second area converts the existi 8 62445 5 , 7 1933119 Estimate 2 310, within the Shaw 8 1 continue to 20 lots will occurred since 1995. for the preceding year. The City has not issued any new multi 1835 150155 1995 6,300 20,497 716 includes the lots above). , constructing two new outdoor gathering spaces at the is approval of 49 urban family building permits with a total valuation of $ 847 - , which 27 ( esidential development r new single Department rural lots . 60 32 598 , 0 the inside as well as the outside. Construction on the deck and patio at 3 It is anticipated that . . from meetings, family gatherings, weddings, and other events. the City issued sacs - , urban lots and 8years de - Anoka County Parks 96 population developments. Also 24 rural lots were approved in a development known as th th Growth FactorsPopulationHousing UnitsStreets (miles)CulStorm Sewer (miles)Water Main (miles) before and after school; an additional gymnasium attached to existing gym space to accommodate the expanded capacity and addrdeficienciesThe will remove the current ramps on the south side of the building andspace foraccessibleNew residential development included 4of 1In 201permits with a total valuation of $seventheThe growth within the last several years continues to produce a profound increase in chart below illustrates the significant growth that has ds. Capital process was through general General Fund and (CIP) CIP, please see the 3 2 20 ,000 will be funded by the analysis of significant capital 9 71 1 $ view the complete document located and , $26,820,000 will be funded Capital Improvement Plan 3 2 20 - ) 665 2 9 . Of that total amount, 852127755 (2) 1001 (1 00 0 y and reserves , % Change% Change www.andovermn.gov 097 , at 34 16 887 773840 95 723,222 963 ,, 5 EstimateEstimate 2,4 91,1058 11 88 Budget are funded through a variety of sources including the Budget and should be referred to for a detailed 1 9 9 1 1 20201 apital equipment/project lev Budget amounts to $ 9 1 CAPITAL OUTLAY/IMPROVEMENTS 0 5354 512625 19952000 7,7509,5888,385 14,616 . will be funded by the c 0 improvements in the Adopted 20 50 , 210 Police $ t and improvements in the Adopted 20 Growth FactorsSanitary Sewer (miles)Parks (Number) Developed Park AcreageTrails (miles)Developed Residential (acres)Undeveloped Residential (acres)Fire/Medical RunsGrowth FactorsCalls for Service Incident Reports Note: Reference Year is 2000 due to database reporting changes. Requests for capital outlay/capital equipment/project levies, Special Revenue and Enterprise Funds, assessments and through the issuance of notes and bonequipmenGeneral Fund levy, obligation bondsinstrumental in producing the outcomes outlined in the 20outlays/improvements.in the Finance Department section - issuance nce issues and will add direct impact n Creek trunk tena d th and their impact ,000 is budgeted 0 through the $10 the Coo 22 system to an ammonia , funded by park dedication - a ballfield and a cold storage building. The vehicle an operating deficit of $155,000, of which an a park with have These projects are contemplated of the Central Equipment Maintenance Internal Service . nual operating budget of the General Fund. are below followed by a list of improvement projects 17 ,000 is planned for irrigating 40 expenditures operating budget for water and additional turf maintenance. the construction on a vehicle maintenance facility Funding for this project is through the Capital Equipment Reserve Capital Projects Fund and . annual /improvement Replacing playground structures only saves about $500 in miscellaneous replacement parts on an . Also planned is the replacement of the ice refrigeration system from an R was lacking sheet and a turf field with a walking track above, and additional senior/youth space for multiple activities. stituted ,000 is budgeted for $55,000 is budgeted for the construction of an additional emergency warning siren in the north central part of . - coverage 9,350 $1,200 to the annual operating budget of the General Fund $ nt - $16,600,000 is budgeted for the expansion of the Community Center to include an additional gymnasium, a sports complex $50,000 is programmed for improvements to City parks that include updating and repairing play structures, and accessibility center roof of the public works building and $55,000 for HVAC replacements at the fire stations. All funded by the Facility - $1,015,000 is budgeted for lift station improvements which includes updates to the Aztec Estates lift station ($90,000), 0,000 in additional operating costs to the Sanitary Sewer Enterprise fund. - 1 Notable adopted capital outlay levy would be in tax where duplicate system ($500,000) and the replacement of the current field house floor ($275,000). can be used as a practice ice ating ll add approximately Most replacements and improvements will reduce operating costs. Some new projects will enhance city services to residents wion operations. on operations.Parks Departmentimprovements to various parks and playgrounds. This will allow the City to replace two play structures that have become mainand/or no longer meet ADA requirements. annual basis since they still need to get routinely inspected. $funds. This will add about $1,000 to the parks Facility Managementmaintenance facility will add approximately $75,000 to the annual operating budgetFund while the cold storage building will add approximately $35,000 to the anfor replacement of Maintenance Reserve levyEmergency ManagemeAndover wiCommunity CenterthatThis addition will add approximately $1,285,000 to the gross tax levy as debt service and operbasedof general obligation bonds.Sanitary Sewerconstruction of the Yellow Pine lift station ($700,000) to spur additional growth in that direction, and the installation of bypass ($225,000) to alleviate capacity issues downstream. These projects are funded by the Sewer Trunk Capital Projects Funapproximately $ COST - ------------- $ ANNUAL $155,000$$$$$$$$1,200 $5,000 $$$$1,000 $$110,000 $$200$ - ------------ ANNUAL $ SAVINGS $$$$$5,000 $$5,000 $$$$1,000 $1,000 $$$500$$500$$180 a House. purpose space. - training and multi DESCRIPTION As R22 is phased out we will need to look at - install LED bulbs in the Ice Arena (City share.) 18 Expansion of the Community Center which may include a youth center, additional meeting rooms, office space, library services space, practice ice rink switching over to turf, storage, hockey Upgrade all city space cameras from coax to digital.Upgrade current building control system that operates all building mechanical systems. Tied to Building Expansion new compressor system for the rink floor.Replace the concrete floor in the Zamboni room.Rewire current fixtures and Replace the floor in the field house.Rewire current fixtures and install LED bulbs in the Field Continue remodeling a functional Emergency Operational Center (EOC) by improving workable space at fire station #1.Install an additional emergency warning siren in the north central rural part of Andover.New developments include the construction of sanitary sewer, water main, storm sewers and streets. Trail maintenance such as crack filling and fog sealing for the City's pedestrian trail system.Reconstruction of trail segments.Replace existing pedestrian curb ramps to meet standards.Planned trail and sidewalk connections provide key links within the existing system. Yearly maintenance of the City parking lots.Construction of a new Vehicle Maintenance Facility with a wash bay, a cold storage building and fuel island/canopy.Apply a sealant to the cement floor in Building A (large garage).A memorial to honor Andover veterans.Replace the fire panel and smoke heads at City Hall. COST 65,000 1 $25,000 $16,600,000$50,000 $500,000 $20,000 $25,000 $275,000 $25,000 $7,500 $55,000 $$60,000 $70,000 $18,000 $367,500 $35,000 $9,350,000 $25,000 $10,000 $7,500 Ice ArenaField House TLE -- Camera/Security SystemIce Arena Refridgeration Concrete Floor Zamboni Field House FloorFire Alarm Panel & ----- Seal Floor Veterans Memorial - PROJECT TI - Emergency Sirens - ACC/YMCA ExpansionReplacement Upgrade Building Control SystemReplacement & Dasher BoardReplacement RoomLED Lighting Upgrade Replacement LED Lighting Upgrade Emergency Operations Center ImprovementNew New Development ProjectsPedestrian Trail MaintenancePedestrian / Park Trail ReconstructionPedestrian Curb Ramp ReplacementsNew Pedestrian Trail and Sidewalk SegmentsAnnual Parking Lot MaintenancePublic Works Relocation / ExpansionBuilding A Memorial Replacement Smoke Head CH --------------- $$-$$$$$1,000 $10,000 $$$$$$$$$$5,000 ---------- $200 $200$1,500 $$200$500$$$$$1,000 $1,000 $$$3,000 $3,000 $$$ by the public, staff, City Council or the roadways within the City. 19 Replace the tube heaters in the truck bay at Fire Station #2.LED lighting in offices and common areas on the South side of City Hall.Replace the existing roof at Public works building.Replace 3 exhaust fans at Fire Station #1.Replace the make up air unit at Fire Station #1.Replace the existing playground equipment and repair the fall zones to achieve ADA accessibility. For miscellaneous projects requestedPark and Recreation Commission each year.Irrigate Hills of Bunker Lake West Park.Construction and upgrades to lift stations are necessary to handle increased sewer flow due to new and projected development. Each year, areas of the City are identified where improvements are required to maintain our storm sewer system. This project provides for a seal coat of the streets. This project provides for a crack sealing of the streets. The pavement striping for City streets is conducted one time per year. Repair/replace damaged and failing concrete curb and gutter throughout the City .Streets to be constructed and/or rehabilitated to meet State Aid Standards.The Street Reconstruction projects will consist of milling the existing street surface and constructing a new asphalt surface. Improvements to gravel Well rehabilitation to include the motor, pump and column pipe. Well to be televised to determine depth and conditon.Install water main, hydrants, and service lines to provide water to existing areas in the City that are not currently served with City water. $25,000 $15,000 $100,000 $6,500 $30,000 $50,000 $15,000 $40,000 $1,015,000 $60,000 $260,000 $260,000 $45,000 $54,000 $2,270,000 $1,163,000 $20,000 $50,000 $750,000 - Heaters FS #2 Hills of Bunker - Tube City Hall Office Public Works RoofExhaust Fans FS #1Make Up Air Unit FS #1 ----- Improvements Replacement Replacement LightingReplacement Replacement Replacement Replace/Repair Play Structures Various ParksAnnual Miscellaneous Park ProjectsIrrigation Projects West ParkLift Station Storm Sewer ImprovementsAnnual Street Seal Coat ProjectAnnual Street Crack Seal ProjectAnnual Pavement MarkingsAnnual Curb ReplacementMunicipal State Aid Routes / New & ReconstructAnnual Street ReconstructionGravel Road ImprovementsRehabilitation of WellsWater Main Improvements ts ing : ,000). revenue Staffing creas 30 8 de due to the 1 is largely for the installation of on the north side of the ) 078 , 3 9 090 , 652 collected and when the debt service budget (the targeted fund balance is and $ 8 are 1 The Road and Bridge Fund 894 , . the 20levies 401 ($ m en o r season . The work done by staff relative to the 20 as new redevelopment/economic strategies take place. charged an administrative fee by the EDA ($1 9 creasing 00) 0 de , were Fund is projected to decrease $ 945 ($ which (EDA) due to the timing of wh abnormal snowfall 20 9 an and the extension of Ve and 2016 s 4 cover operations in 201 is decreasing in 201 Fund expenditures available f to FUND BALANCE term needs. Fund balance goals are established to provide for cash flow needs, 201 - , budget guideline that works toward establishing the General Fund fund balance for 928 , 9 changes in calculation 1 and Sewer Trunk Fund are 2012 611 General rance signs located throughout the city, some include electronic reader boards. 9 TIF Management Fee Migration 1 phone system and network server emergencies 00K) - 3 roofing, HVAC and emergency facility repairs onstruction project of fund balance - K) 00K) crease by $ salt and sand needed for 90 3 K) - 447 in , 90 police, fire and civil defense unexpected costs K) - 317 90 % of planned 20 K) the Economic Development Authority 5 , (including lift stations) 4 use $ 90 scope of the rec , the Water Trunk Fund The Tax Increment Projects Fund projected to Technology ($ the ). The estimates are also necessary to preserve the following emergency reserve fund balances for core services are 972 , due to no less than projected to 262 9 , 1 5 Snow Emergency ($Public Safety ($Facility Management ($Information Economic Development ($Fiscal Disparities Fluctuation ($ made. The Building Fund is increasing by $200,000 due to the increased levy amount to help plan and replace major building componen . in 20 are) s Special Revenue Funds Capital Projects Funds 100 , General FundDebt Service Funds 80 9 The City adopts fund balance goals to meet short and longcapital purchases, emergency contingencies and other specific needs. The and expenditure estimates has achieved the Council 20working capital at approximately $In the decertification of the tax increment finance district in This also includes the construction of monument entand expenditures will be migrated over to the General Fund over time.The paymentIn the water main and sanitary sewer ($city campuslike roofs, HVAC units, etc. to the should short and long term quality services lives through recreational and statement exists to provide , f Andover tizens. he City o t T - . & GOALS is 21 hand, the City of Andover at es that ethics and integrity are the foundation blocks of public trust and he City of Andover believes that the citizen is our customer and, as such, t - he City of Andover believes that open and honest communication with each other and t - COMMUNITY VISION City of Andover believ effective manner. - he City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential the t - - cost are: organizational goals are: he City recognizes the following fiscal values as the basis for delivering current and future services to the residents t - (one to five years) Assure city financial stability through cost effective services. in a professional and A. EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICESpublic FISCAL RESPONSIBILITY if citizens are to have confidence in government.ETHICS AND INTEGRITYconfidence and that all relationships are built on these values.TREATING THE CITIZEN AS OUR CUSTOMER be treated with courtesy, respect, and integrity.OPEN AND HONEST COMMUNICATIONthe public we serve is the key to having an effective organization and informed ciFISCAL GOALS of Andover. 1.2.3.4.5.1. While each budget year appears to only be dealing with the task development guidelines, does keep in mind throughout the process organizational goals that are meant to say who and what the City of Andover opportunity, quiet neighborhoods, civic involvement,The long term organizational goals The short term e y market redevelopment projects. rty owners on land set aside for effective and improve efficiency in delivering - he City wants to be supportive of those invested t ssful in our community. - cost . OALS G NT 22 REDEVELOPME / unity priorities when resources are inadequate to address/meet all community demands. Comprehensive Plan update, soliciting input from large prope and capture new growth for community needs 9 EVELOPMENT D he City is supportive of collaboration efforts that are t - environmental impacts to our community including proposed developments and the attempt to mitigate ing excellent services to all Andover residents, look for and identify opportunities to reduce tax burdens RESIDENTIAL / development requirements to minimize impacts from overly burdensome requirements. Focus spending on community needs; wants need to be supported by new or redirected sustainable revenues.Explore new revenue streamsCity investments need to focus on long term sustainability.While still providwhenever possible.Maintain property values and keep property taxes affordable through good fiscal management.Prioritize projects to best serve commPlan ahead for large projects (master planning) to maintain consistent revenues and expenses to avoid property tax spikes.Facilitate upgrades or redevelopment of blighted or underdeveloped parcels.Work with business owners and property owners to assist them in being succeContinually analyze existing commercial areas to determine if expansion is feasible and seek out new areas to better serve thcommunity.Continu ally evaluate how to meet sewer/water and street needs of any proposed development and Review City development processes to help reduce unnecessary steps, time delays and development costs. Review Be aware of negative where economically feasible and practical.Evaluate housing programs to determine useful programs that we could adopt that have a positive impact on communitvalue and preserve neighborhoods.Begin discussion for the 201future development.Respond to regional and state initiatives that impact our City or residents through our organizational memberships. B.C.D.E.F.G.H.A.B.C.D.E.F.G.H.I.J.K. OMMERCIALOLLABORATION GOALS Cin or wanting to invest in our community. Cservices. 2.3. ll ruction of ve. their input and seek their ations with partners about city services. effective - fficient garbage collection process for the community can be achieved ature nature park. 23 ng routes for our residents and business owners. community youth. the he City is committed to providing efficient and cost for t - Cautiously renew any new mandate to determine whether we need to act.Foster positive relationships with: school districts, Anoka County, and nearby cities.Advocate for safe, efficient commutiSupport an effective and comprehensive transportation system.Support the upgrade of transportation routes to the Twin Cities Metro for our commuters.Work with waste/garbage haulers to determine if a more eEvaluate how volunteers can help our community become a safer, more welcoming and attractive place to liContinue to work with the railroad company that manages the tracks through Andover to reduce the interference trains have on traffic blockages and public safety.Evaluate parks maintenance to ensure the City is preserving park assets and not committing to unsustainable service delivery.Continue fostering positive relationships with athletic, youth, and other service organizations to obtain contributions with time and funds towards community improvements.Alter packet format to improve viewing function on tablets and reduce redundancy found in the format.Keep current with advances in technology where appropriate.ACommit to providing the public with effective Public Safety through Fire and Law Enforcement services.Pursue local programming Continually review our processes to reduce unnecessary or unwanted service deliveries.Encourage quality building standards.Begin comprehensive evaluation of future Public Works needs on the city campus, hire an architect, begin the constnew maintenance facility and related projects along with parkway road to come from Nightingale Street that equally benefits acitizens of Andover.Begin space needs study for Community Center expansion and financial pro forma, continue converstheir needs and finances. Create public process for public input.Continually evaluate whether we are following our Park Dedication Study when spending park dedication funds.Continue to maintain Kelsey Round Lake Park as a signPreserve current trails and complete trails where we have missing connections or need to improve pedestrian safety. A.B.C.D.E.F.G.H.A.B.C.D.E.F.G.H.I.J.K.L.M.N. SERVICE DELIVERY GOALS 4. friendly so they can be informed about - enhance neighborhoods. effective and economical manner possible to ensure - 24 ridor to the city campus with sustainable landscape plantings, seeking TERM FISCAL OBJECTIVES - : public feedback. LONG nding public resources in the most cost he City recognizes that providing quality basic & desired services enhances the quality of life of our t as follows - . In light of past state aid reductions and previous years levy limits imposed by the state legislature and levy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing of o utilize volunteers and engaged residents. basic services management plan for Open Space properties that minimizes staff involvement and emphasizes users to create their own ers. Develop an effective Emergency Preparedness Plan to come to the aid of those in Andover when effected by community disastContinue to support preservation of natural resources (land, water and air quality).Pursue experience and support volunteer efforts to provide additional programming and activities.Improve community aesthetics by enhancing the corvolunteer assistance.Look at ways to improve and coordinate a cohesive, attractive appearance along county corridors when the County upgrades roads.Explore new methods of collecting Continually review newsletter content.Plan and provide quality city services to residents and adapting to changing demographics.Look at ways information from resident survey can be incorporated into goals, plans and policies.Find ways tEvaluate 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 Support improvements to the website that provide residents with information that is userrecreation opportunities. sporadic onset O.A.B.C.D.E.F.G.H.I.J.K. LIVABILITY/IMAGE GOALS residents. current 5. The City Council and staff are committed to expethe stability of the City'sthesufficient revenues to fund City services . - term - t ns, per s to the resource gross levy sts at the sub ce expenditures, partment activities private partnerships in - lishes a link between fiscal targets and distribution and the increase in the term impacts of present day expenditure and financing - attempts to accurately reflect service delivery costs at the data to allow for an independent analysis of specific service which rational efficiencies, and encouraging public rvices as they relate to personnel, charges and services, supplies and 25 service delivery system. crease in the fiscal disparities de service transactions. - for - policy goals. reflective of the 9 term fiscal projections. - crease in 201 term financial models that identify anticipated trends in community growth and financial resources, designate - in reflect the true cost of providing specific services. The City tax rate will City services will continue to be evaluated in terms of identifying all relevant funding sources to underwrite specific servipromoting alternatives to traditional funding methodologies, opeservice delivery systems.The City employs a cost accounting system that is department specific department and division levels. By including all supplemental secapital outlay will further distinguish the total costs of the service provided. The City has the ability to analyze these cocategory detail levels in support of overall Each department is responsible for identifying relevant performanceoutcomes. Data is reviewed to provide the Council and general public with a better understanding of the operational demands, inputs and performance outcomes associated with a specific The City continually maintains various financial models to determine the longdecisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuatiocapita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key shorfiscal targets are in line with long Employing a strategy aimed at reducing the City's reliance on the propersources such as special revenues, user fees and feeThe use of an appropriate cost accounting structure that will lead to the creation of individual cost centers for all City deto accurately The development of work performance goals for each department to ascertain and measure how each operating division contributeCity's overall public service mission.The development of longappropriate capital resources to future City needs, tracks per capita spending growth, and estabbudgetary expenditure goals. l g a viously ariety of ations. committed and future ded period of programming to reduce staffing , enhanced the City implemented financial , software training opportunities, reducing and - new the City to reduce storage areas pre and corporate paper and are designed to d private sector business values in City operations. agencies oth implementations have allowed the City B . 26 fficient data retrieval system. In addition lly in underwriting the cost of significant public expenditures. City has established a separate capital projects levy to underwrite the cost of selected y funds to maximize the generation of interest income, while ensuring adequate cash term investing is designed to achieve the best yield in the current market, followin - environment that challenges the status quo of City operations. new system. engineering the work environment by encouraging cross - l in achieving these results. each with to invest additional time and energy on labor saving technology, such as paper files. Staff implemented an optical imaging solution that enable imaging o paper files and provide a more economical and e optical to the increased efficiencies ue Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a vfinancial instruments such as certificates of deposit, municipal bonds, federalmaximize municipal investment income. Longstrategy that secures income streams at a higher rate of return for a longer period of time.The City has taken stepsanddedicated tmanagement software to improve reporting and operating efficienciesdThe City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existingtaxpayers share equally in the cost. In addition, thecapital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. The five year CapitaImprovement planning process is criticaCity staff is encouraged to identify work practice issues that are inefficient or overly bureaucratic. The management team isto involving their employees and fostering an The aggressive and appropriate investment of idle Citflow requirements.Greater reliance on technology to enhance employee productivity in all areas of City operations and improve customer communicThe adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extentime to ensure that current and future taxpayers share equaInvolving all employees in the process of reeliminating bureaucratic barriers, streamlining public process requirements, and adopting and eral rvice ly purchase quality se - d meets the core s was approached nd public entities; human resources by es. It is interesting to note that effective, efficient and high - a of public safety, telecommunications, public access quality service outcom to actively participate in a team process. Decisions - nt; the utilization of cost center accounting that allows for cities. s relies upon all departments to work within the same framework in 27 tax rates in Anoka County, as well as within the entire metropolitan area. City r EXECUTIVE SUMMARY when compared to similar local issues using a regional approach. tures over several years; and purchasing new equipment and introducing new technologies that 9 1 maintain one of the lowe rank in the bottom half e 20 , continues to continues to ith organizational practices that promote employee involvement, innovation and interdepartmental communications will as presented , The City has established several equipment and service delivery sharing arrangements with neighboring communities and has sevjoint powers agreements in place on a variety of local and regional issues in the aretelevision and wastewater service initiatives. Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointequipment and develop strategies to deal with The budgetdelivery model. Essentially, thdollars are wisely managed and expended in as prudent a manner possible to achieve highthe City of Andover spending per capita Budgetary ProcessGuiding the City budget process were Council policy guidelines that were described earlier in this message. The budget procesby employing strategies associated with extending the useful life of existing equipmea better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private aspreading the cost of significant capital expendiallow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and City staff, along wgenerate substantial efficiencies in City operations.The budget process included the opportunity for all department heads and supervisorsconcerning the operational and maintenance needs of the organization were made by the management team after a thorough reviewprioritization of budgetary requests. The integrity of the budget procesdeveloping a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, anservice needs of the requesting department. he ge rked a more radually growing ponses to t ider; and sonable service ition is appropriate with financial data in which a sound and valid ood and fairly addressed. Cities must take a unified approach ence in local government services and inspires a partnership of m the appropriate users of the service; 28 financial resources. effective manner, while still keeping the quality of City services high and meeting the rea - effective services; - Lee Brezinka, Finance Manager and Finance staff in generating reliable strategic planning to appropriately identify, allocate and effectively utilize resources to meet future service needs; of term - Adopted Budget is the product of the collective efforts of the management team and their respective staffs. They have wo 9 1 strong voice in the legislature to ensure that City issues are clearly underst increased utilization, understanding and promotion of technology in the delivery of public services;emphasis on longgreater participation, accountability and flexibility in the work force that will allow for the development of innovative resincreased demand for costthe need to focus on developing an alternate framework of special revenues and user fees as alternate funding mechanisms to gthe recognition that the City should work to assist the community in meeting challenges as a partner and not as the sole provain dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encouracommunication to facilitate common ground issues that build confidcollaboration and innovation across all levels of government. In order to meet these growing challenges, the City must continually evaluate new ways and methods of conducting business in economical, competitive and costexpectations of the community. The budget process incorporates a management vision supported through:The 20diligently to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognrespect to the involvement budget document was produced. The entire management team should be recognized for their diligent efforts in preparing a budget that meets the needs of thiscommunity, yet recognizes the limited nature of vices to the expertise that each member of the Council has 29 The City Council should be recognized for their frugal use of municipal resources and continual efforts to provide needed serresidents they represent and serve. I am appreciative of the commitment, good judgment and contributed to the budget process.Respectfully submitted,Jim DickinsonCity Administrator . 8 property tax levy 1 9 1 , 20 8 2 ; and 8 1 , 20 8 2 ber and City of Andover Budget and the 20 9 1 ______________________________ City of Andover Budget by fund type as follows: 9 1 18 - R096 . PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR.30 9 1 Mayor f Minnesota Department of Revenue an adopted tax levy by December - RES. NO CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA CITY OF ANDOVERJulie Trude BUDGET AND 20 recognized as sound financial practice; and 9 . 1 8 1 day of December 20 4th _______________________________ as listed on Attachment A. 487 , 103 , 3 Deputy City Clerk WHEREAS, the preparation and adoption of budgets is WHEREAS, the City of Andover receives significant financial support from its residents through the payment of property taxes;WHEREAS, the City of Andover has the responsibility to appropriately and efficWHEREAS, Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to DecemWHEREAS, Minnesota State Law requires the City to certify to the State oNOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 20totaling $1BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 20 TTEST: A RESOLUTION ADOPTING THE CITY OF ANDOVER 20Adopted by the City of Andover this AMichelle Hartner 31 and have found the same to be true and I have carefully compared the attached Resolution No. ________________________________ Deputy City Clerk . 8 1 32 Michelle Hartner day of December 20 4th nd this Property Tax Levy with the original record thereof preserved in my office, 9 1 Budget and 20 9 1 ing the City of Andover 20 MINNESOTA) adopt 18 - STATE OF 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 R096correct transcript of the whole thereof.IN TESTIMONY WHEREOF, I have hereunto subscribed my ha n effective egrity. that all relationships are built on effective manner. - . 33 : nt program. services with available resources. responsibility and prudent stewardship of public funds is essential if citizens are to have confidence in exists to provide quality services to the public in a professional and cost and preserve and prioritize provision of city ToTo enhance communication with the public.To support processes that involve citizen engagement.To broaden To balance To respect the environment. he City of Andover believes that open and honest communication with each other and the public we serve is the key to having a EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICESThe City of Andover FISCAL RESPONSIBILITYThe City of Andover believes that fiscal government.ETHICS AND INTEGRITYThe City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence andthese values.TREATING THE CITIZEN AS OUR CUSTOMERThe City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and intOPEN AND HONEST COMMUNICATIONTorganization and informed citizens. 1.2.3.4.5. Values and Goals Goal #1Goal #2Goal #3Goal #4Goal #5Goal #6Goal #7 9 1 eturned to Council . The adopted 20 8 1 ions, or motions. , 20 4 ed to City activities may not and publication requirement ial costs of the implementation . 8 1 ctical by the Administrator. , 20 ouncil approve a preliminary budget and certify Proposed Operating Budget and Proposed Tax 28 . 9 st 1 re than the percentage increase in the implicit price . purpose. th to December 31 st 34 requires the City Administrator to submit an annual budget to the City Council, which held a meeting pertaining to the 20 and the City Council Chambers. The date was advertised in the September City Newsletter, on public ways: at 7:00 p.m. in 8 fall under this exemption 1 not , 20 8 1 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 9 rdinance 216, Section 2., Major Areas of Accountability 201 , policy issues are identified by the City Council, evaluated, and costed out by the Administrator and management team, and r as also submitted to Anoka County and the Minnesota Department of Revenue by December he Policies are initiated by actions of the City Council at its regular council meetings through adoption of ordinances, resolutPolicies are also initiated, studied, and reviewed at special work sessions called for that 1)2) Budget Development Process The Budget Process Andover City oaccurately reflects the financial needs of the City organization. Additionally, state law requires that the City Ca proposed levy to the Anoka County Property Records and Taxation Division by September 15Beginning in levy year 2002, the State of Minnesota is allowing certain governmental units exemption from the public hearing if its total proposed property tax levy does not exceed its previous year final property tax levy by modeflator. The City of Andover did Levy on Tuesday, September TV, and in the local paper. Final City Council action adopting the City Budget and Property Tax Levy occurred on December City Levy wThe budget is prepared on an annual basis, and follows the calendar year, January 1Policies are set by the City Council in one of two of these policies and include them in the budget where economically feasible.In summaryfor appropriations if necessary. If no appropriation is necessary, the new policy is implemented as soon as praEach activity manager is given a monthly financial report of expenditures compared to the adopted budget. Expenditures relatexceed appropriations without approval of the City Council.Below is t Responsibility City Council / StaffAdmin / FinanceAdmin / Finance City Council / StaffCouncil / StaffDepartment HeadsDepartment HeadsCouncil / StaffStateFinance / Department HeadsCity Council / StaffDepartment HeadsDepartment HeadsFinance / Department HeadsFinanceFinanceAdmin / Mgmt Team Admin / Department HeadsFinanceCity Council / StaffCounty 35 Activity CITY OF ANDOVER 2019 Budget Development Calendar Council Workshop to discuss budget guidelines.2019 Budget Calendar.Prepare base budgets and line item budget pages.Council adopts 2019 Budget Development Guidelines.Council budget progress report distributed and Council budget discussion.Distribution of base budgets, personnel services, capital budget forms and line item budget pages to all Department Heads.Begin preparation of performance measures.Council budget progress report distributed and Council budget discussion.Department of Revenue notifies of required dates.Prepare preliminary 2019 revenue estimates.Council budget discussion.Requests for additional full-time staff to City Administrator.2019 Budget forms and prioritization of adjustments to base, capital outlay requests due to Finance.Staff preparation of 2018 budget expenditure estimates.Compile and prepare documents for Management Team.General Fund levy calculations.2019 Budget Decision packages prioritized and finalized.Deadline for updated performance measures to City Administrator.Preparation of final draft of 2019 Proposed Budget for Council Workshop.Council budget progress distributed. Receives 2019 Proposed Budget.County notifies City of school district & county public hearing dates. Date March 27, 2018April 3, 2018April 17, 2018April 24, 2018May 7. 2018May 7. 2018May 22. 2018June 1, 2018*June 1, 2018June 27, 2018July 2, 2018**July 2, 2018**July 2, 2018**July 6, 2018July 13, 2018July 17, 2018August 3, 2018**preliminary ** no exceptionsContinued Responsibility City Council / StaffCity Council / StaffDORCity CouncilCity Council / StaffFinanceFinance / DORCity Council / StaffCountyCity Council / StaffCity CouncilCity CouncilCity CouncilFinanceFinanceFinanceF inanceFinance 36 Activity CITY OF ANDOVER 2019 Budget Development Calendar City Council follow-up workshop for review of 2019 Proposed Budget. City Council preview of Proposed 2019 Tax Levy Presentation.State Department of Revenue (DOR) to certify levy limits for 2019.City to adopt proposed 2019 tax levy and select public hearing dates.Proposed 2019 tax levy must be certified to County.City to file proposed 2019 special levies with DORCounty Auditor to mail parcel specific notices.City Council preview of Public Hearing.City conducts Public Hearing during this time frame. City of Andover Public hearing on 2019 Tax Levy and Operating Budget.City Council adopts 2019 Tax Levy and Operating Budget.Deadline for staff to certify 2019 tax levy to State and County.Finalize 2019 Actual Performance measures. Adopted budget printed and distributed.Publication of adopted budget information in newspaper.Department of Revenue budget form completed and submitted.Submit budget award application to GFOA. (Due 90 days after budget adoption.) Date August 21, 2018August 21, 2018September 1, 2018September 18, 2018 (Req.)September 25, 2018September 28, 2018 (Req.)September 30, 2018 (Req.)October 23, 2018November 27, 2018December 1 - 14, 2018* (Req.)December 4, 2018December 4, 2018December 28, 2018* (Req.)January 18, 2019*January 18, 2019January 25, 2019March 5, 2019*preliminary ** no exceptions - and balancing set - enterprise funds erm debt and the t - and the purchase of ion section presents a , except for principal ounting methods used for d term debt flow of cash. Interest on long - currently has three on long accounting entity with a self . Governmental funds include the General ed a budget for every governmental fund for to assist in the analysis of these funds when ity of Andover and interest evenues recognized in the accounting period in which they accepted accounting principles. Because fund accounting is with r as an outflow of resources ments are covering. Capital items are depreciated over their useful life with he payment of principal 37 For accounting purposes, the payment of principal on long expenses budgeted For budgeting purposes, t d. A brief description of each fund type can be found at the beginning of each section. aintained on a modified accrual basis m are eflected in the fied Public Accounting firm that will include issuing a financial opinion will conduct an audit of the City records r blish and maintain a high standard of accounting practices. Accounting standards will conform to Generally Accepted funds are maintained on an accrual basis. Revenues are recognized in the accounting period in which they are earned and term debt and capital expenditures which are recognized as expenditures when due Proprietary funds include Enterprise Funds and Internal Service Funds. The C -rietary funds is . and Budgeting All governmental funds Proprietary in the prop City will maintain a fixed asset system to identify and protect all City assets. assets The City of Andover will estaAccounting Principles (GAAP) as outlined by the Governmental Accounting Standards Board (GASB).At the end of each fiscal year, a Certiand a management and compliance report on internal controls.The City of Andover will maintain a strong internal audit function.TheThe Finance Department will prepare monthly financial reports for internal management purposes. Budgeting for City Operations The City is required to account for revenues and expenditures in accordance with generally required for financial reporting, the appropriation budgets are organized and presented in like manner. The summary informatsummary of revenues and expenditures of each fun Basis of Accounting The financial reporting and budgeting systems of the City are organized on a fund basis. A fund is a fiscal and of accounts. All funds in the budget were prepared using the following basis of accounting, which is consistent with the accfinancial reporting.Government Fundsbecome available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurreinterest payments on longFund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The City of Andover adoptthe first time in 2002, and continues to do so. Proprietary Fundsexpenses are recognized in the period in which the liability is incurred. purchase of capital assets is reflected on the balance sheet as it is reflecting bonds payable and capital assets with an outterm debt in these funds is reflected in the expenses for the period that the paythe depreciation amounts included in the expenses. capital analyzing rate structuresand two internal service funds.The City of Andover has adopted the following accounting, auditing and financial reporting policy:Accounting, Auditing and Financial Reporting Policy 1.2.3.4.5. g fund ces will services to be l. Expenditures to determine its es to the adopted ces, and then use leve se operations are to be he budget, fund balance unrestricted unassigned ated from all sources and the lows: ial report. This report shall be made available to the elected officials, quired for prudent fiscal management, to the City Administrator and Finance 38 ion approach. Each department will have an opportunity to request personnel, supporting, including capital improvements and depreciation. Enterpri - fund balance, as re up" resource allocat - assign sufficiency. - rating agencies, and the general public. - l attempt to maintain its present service level for priority and essential services subject to available revenues. New servi oring and Amendments The City will utilize procedures that allow departments to integrate priorities and objectives into the budget requests. The City wilbe considered for funding within available resources.The City of Andover will utilize a "bottomgoods, capital items and services needed to carry out its responsibilities in a timely manner.The resources to fund the budget will include all revenues reasonably anticipbalance estimate to be carried forward at the beginning of the fiscal year.The City enterprise operations are to be selfreviewed annually for selfCity Council approval is required for adjustments that are made to facilitate a department restructuring. A.B.C.D.E.A. The formal budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types ofprovided, given the anticipated level of available resources.The operating budget, authorizing expenditure of City monies, will be adopted annually by the City Council at the department City Budget during the operating year is as follows: The City Council delegates the authority to Director.unrestricted resources as order: 1) committed, 2) assigned, 3) unassigned.Annually, the Finance Department will prepare a comprehensive annual financcity management, bondThe City will annually submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA)eligibility to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting. 1.2. 6.7.8.Budget Monit The Andover Financial Policies identifies an Operating Budget Policy which includes the process for monitoring and amending tconsiderations and the capital improvement budget coordination, that policy is as fol Operating Budget Policy r and the personal e. ased. bered purchases equired and additional fers made to current tax revenues are operation. nual operating budget. Each capital made available to elected officials, City ccur during the course of the year. It is not end. However, the appropriation authority for - pse at year of the subs 39 for each operating fund, to support operations until levels to ensure that sufficient resources are available for current and future ng year, may be transferred to the subsequent year with the approval of the City time basis. - fund balance available for contingencies of between 1 percent and 3 percent of budgeted y of Andover, as defined in the Fixed Asset Policy, applies to all budgets and purchases associated end necessary for approximately 6 months unassigned unassigned fund balance - ntrol system to ensure adherence to the budget and will prepare regular reports, which compare actual annual collection of local taxes, each operating fund, relying on property tax related revenues, should maintain - at year under $10,000 on a one , or their designee when unavailable, approval is required for all budget adjustments or trans rating agencies, and general public. - capital outlay tion Award. or City Council approval is required for any budget adjustment that exceeds eitherUnder no circumstances should budget adjustments be split to avoid approval limits.All unencumbered appropriations and encumbered purchases less than $1,000 laall major capital projects and capital assets carries forward automatically to the subsequent year. Appropriations for encumin excess of $1,000, which are not budgeted in the ensuiAdministrator and Finance Director. The current year appropriation is reduced and the subsequent year appropriation is incre that adjustments under $10,000 may be approved as provided in C. & D. below.City AdministratorservicesBudget adjustments and transfers among expenditure accounts may be authorized during the fiscal year by the City AdministratoFinance Director if there is no The City will budget to maintain an received. Based upon the semian unassigned fund balance The City will budget to maintain an expenditures for each operating fund in order to finance unforeseen items and events that onecessary for each fund to hold its own contingency. The General Fund may hold contingencies for other funds when appropriat B.C.D.E.A.B.C. The City will budget to maintain fund balances at adequateexpenditures, whether planned or unforeseen.The City will maintain a budgetary corevenues, and expenditures to budgeted amounts.The City will coordinate development of the Capital Improvement Budget with the development of the animprovement project is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel roperating expenses.The capitalization threshold for assets of the Citwith the Capital Expenditure series of accounts.Annually, the Finance Department will prepare an Annual Operating Budget report. This report will be management, bondThe City will annually submit its annual operating budget document to the GFOA to determine its eligibility to receive the GFBudget Presenta 3. 4.5.6.7.8. - charges. . The Capital 3 2 year of the CIP will gs with an effective ntage of the total cost and 20 that policy is as follows: studying relevant revenue ioritizing capital projects in 20 pated as "available fund balance" in services in establishing tax fees and run fluctuations in any single revenue source. The - investment and to minimize future maintenance and of economic downturns. to the public. The process will enable the City to evaluate long ) against those projects planned between 20 9 1 40 the Capital Improvements Budget (CIB). The CIP will be reviewed and updated annually. ilable. Discussion regarding specific revenue sources can be found in the summary information following policy: t Program ppropriate by the City, and will conduct a public hearing or adopt an ordinance, as required by law, prior to setting fees or The City will attempt to maintain a diversified and stable revenue system to shelter it from shortrevenue mix should combine elastic and inelastic revenue sources to minimize the effect The City will follow an aggressive policy of collecting revenues.The City will periodically review fees and charges in order to keep pace with the cost of providing the service or that percedeemed aThe City will consider market rates and charges levied by other public and private organizations for similar charges.The City will allocate Citywide revenues to funds, which provide services to the entire City.All revenues, reasonably expected to be unexpended and unencumbered at the end of the year, will be anticithe budget of the following year.The City will attempt to invest all cash holdings in accordance with the cash and investment policy and maximize those holdinpayment policy.A Capital Improvements Plan (CIP) will be developed for a period of five years. As resources are available, the most currentbe incorporated into the current year operating budget as Years two through five are for planning purposes only.The City will maintain its physical assets in a manner, adequate to protect the City's capital replacement costs. The City will provide for maintenance and replacement from current revenues where possible. enue Policy 1.2.3.4.5.6.7.1.2. Determination of Revenue Estimates The Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by history along with economic trends and indices when avasection of the budget. The Andover Financial Policies identifies a Revenue Policy that outlines Rev Capital Improvemen order to coordinate the financing and timing of improvements, which maximizes the return term cost and benefits of projects being adopted for the coming year (20Improvement Program follows the Capital Improvement Policy t are operating n determining the bond rating so that the + A st of at least $5,000 in one of the calendar years of financial health and economic forecast. The limitations of al project prior to inclusion in the CIP. The operating costs to they meet a majority of the following criteria: 41 ftware upgrades, etc.) will not be considered within the CIP. ebt Policy: term borrowing to finance operating needs except in the case of an extreme financial emergency beyond the City's - term debt financing when all of the following conditions exist: - presented by the City Administrator and Management Team annually to the City Council for approval. Any substantive change expected useful life asonable ability to forecast. Mandatory projectMaintenance project (approved replacement schedules)Improve efficiencyProvide a new servicePolicy area projectBroad extent of usageLength of Positive effect on operation and maintenance costsAvailability of county/state/federal grantsElimination of hazards (improves public safety)Prior commitmentsReplacement due to disaster or loss The following Debt Policy should be used to provide guidelines for debt decisions. There are no absolute rules or formulas ilevel of City debt. Each situation requires a thorough review of the City's debt position, this policy refer to City of Andover debt only (excludes EDA and HRA). A.B.C.D.E.F.G.H.I.J.L.The City will not use shortcontrol or reThe City may use long The City will maintain good communications with bond rating agencies and will try to improve or maintain its current ACity's borrowing costs are minimized and access to credit is preserved. K. To be considered in the Capital Improvements Program, a project must have an estimated cothe project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items thaexpense (such as maintenance agreements, personal computer soCapital projects, which duplicate other public and/or private service, will not be considered.The City will identify the estimated costs and potential funding sources for each capitmaintain capital projects shall be considered prior to the decision to undertake the capital projects.Capital projects and/or capital asset purchases will receive a higher priority ifThe CIP is to be to the CIP after approval must be approved by the City Council. 3.4.5.6.2.3.4. 1. 7. Debt Administration The City of Andover has adopted the following D as well as the . he useful life of anticipated. ry and economic ly sed. rves and designations. revenues or resources. For are levied at 105% of the required debt % of the estimated market value. (Minnesota 3 nless the benefit is for City of Andover residents. ual Financial Report and official statement. program. Investments shall be undertaken in a manner that seeks to ve a benefit from the improvement, and 42 e). rate is less than or equal to the current and projected investment rates, or the purchase is volved in the investment process shall have no personal business activity that could conflict % of the estimated market valu 3 term debt is limited to capital improvements or projects that cannot be financed from current - the primary objectives, in priority order, of investment activities shall be safety, liquidity and yield: recurring capital improvements are desired, and - recurring nature (copy machines and information technology equipment). this policy applies to the investments of all financial assets of the City of Andover except investments of - When nonWhen it can be determined that present and future citizens will receiWhen the cost benefit of the improvement, including interest cost, is positive. Safety. Safety of principal is the foremost objective of the investment ensure the preservation of capital in the overall portfolio.Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonabYield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetacycles, taking into account the investment risk constraints and liquidity.Prudence. The standard of prudence, meaning not for speculation and with consideration of the probable safety of the capitalprobable investment returns, shall be used by investment officials.Ethics and Conflicts of Interest. Employees inwith the proper execution and management of the investment program, or could impair their ability to make impartial decisions A.B.C.The City of Andover will limit the amount of total net general obligation debt to no more than The payback period of the bonds or notes will not exceed the estimated useful life of the capital asset constructed or purcha The issuance of longpurposes of this policy, current resources are defined as that portion of fund balance in excess of appropriate required reseThe City of Andover will not pledge indebtedness to outside agency financing, uStatutes limit on debt is Capital notes and leases may be used to finance equipment purchases anytime the total cost of the purchase exceeds $10,000, tThe City will follow a policy of full disclosure on every Comprehensive Ann The City will conservatively project the revenue sources utilized to repay the debt (i.e., taxes for G.O. debtservice).the equipment is greater than five years, the financing of a non Scope retirement funds.General Objectives A.B.C.Standard of Care A.B. 5.6.7.8.9. 10.1.2.3. Investment Policy The City of Andover has adopted the following Investment Policy: om liquid . Unless - f the applicable: ent policy and ties are deposited in estment services. hat five years fr who shall act in accordance with and maintaining an internal control structure designed to ensure that 43 negotiable certificates of deposit. - administered or through joint powers statutes and other intergovernmental agreement - 1, or higher) by a nationally recognized rating agency; - to manage the investment program is granted to the Finance Director extent possible, the City shall attempt to match its investments with anticipated cash flow requirements 1, or F - 1,P - ents. Repurchase agreements shall be consistent with GFOA Recommended Practices on Repurchase agreements. grade obligations of state, local governments and public authorities; - e agreements whose underlying purchased securities consist of the investment types listed above. te statutes. ernment investment pools, either state ce Standards. The investment portfolio will be managed in accordance with the parameters specified within this policy. U.S. government obligations, U.S. government agency obligations and U.S. government instrumentality obligations which have a market with a readily determinable market value;Certificates of deposit and other evidences of deposit at finanhighest tier (e.g., AInvestmentRepurchasMoney market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollardenominated securities; andLocal govlegislation. Authorized Financial Dealers and Institutions. A list will be maintained of financial institutions authorized to provide invDiversification. Investments shall be diversified by security type and institution. Delegation of Authority. Authorityestablished written procedures and internal controls for the operation of the investment program consistent with this investmapplicable staInternal Controls. The Finance Director is responsible for establishing the assets of the City are protected from loss, theft or misuse.Delivery vs. Payment. All trades, where applicable, will be executed by delivery vs. payment (DVP) to ensure that securian eligible financial institution prior to the release of funds.Investment Types. The following investments will be permitted by this policy and are those defined by state and local where Collateralization. Full collateralization will be required on nonRepurchase AgreemMaximum Maturities. To the matched to a specific cash flow, the City will not directly invest in securities maturing, or having average lives, of more tthe date of purchase.Methods. The Finance Director shall prepare an investment report, including a management summary that provides an analysis ostatus of the current investment portfolio and transactions made quarterly.PerformanMarking to Market. The market value of the portfolio shall be calculated at least quarterly. C.Safekeeping and CustodyA.B.C.Suitable and Authorized InvestmentsA.B.C.A.B.A.B.C. Investment ParametersReporting 4.5.6.7. ard to the City ion Aw s of the City Administrator , along with notices posted on uirements, and we are submitting it consecutive time the City of Andover has received Anoka County Union th he e impact of the proposed tax levy upon each individual een t seven . This is the 8 44 1 t document that meets program criteria as a policy document, as an operations ny investment currently held that does not meet the guidelines of this policy (originally adopted April 6, 1999) shall be Citizens are invited to provide written or oral comments at the public hearings. Exemption. Aexempted from the requirements of the policy.Amendments. This policy shall be reviewed as needed or requested by City Council. A.B. Policy Considerations 8. Distribution of Budget Information Copies of the proposed budget are typically available to the general public beginning the second week in August in the officeand Finance Director. Notices of the public hearings are published in public bulletin boards.The County Property Records and Taxation Division is required to notify each property owner of thparcel 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 Presentatof Andover for its annual budget for the fiscal year beginning January 1, 20this award.In order to receive this award, a governmental unit must publish a budgeguide, 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 reqto GFOA to determine its eligibility for another award. rived by studying years. Included are brief descriptions of each source and explanations of any 45 few earlier, the Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are ar e Projections wing are individual graphs of the major revenue sources over the last Revenu As mentionedrelevant revenue history along with economic trends and indices when available.Follovariances over the same time period. , ted city and the requirements revenue source The Council, by This . 8 1 storm water 20 ource is primarily used in the In the Enterprise Funds, charges cellaneous charges for dedica homestead exclusion program (both compared to department charges for the maintenance of and beyond. % as 9 50 . market value 5 enditure level necessary to conduct City business in increase e water charges are determined by a water rate study, the sewer does charges for services represent budget for property taxes was commitment to maintain the City Tax Rate in a 9 46 1 term competitiveness, efficiency, staffing and capital requirements. - based on the amount of funding needed to comply with federal The general property tax revenue . . ) and acknowledging community economic concerns, were able to establish an appropriate baseline of rces in the General and Special Revenue Funds; such as project engineering and inspection services to tion to ensure the long in 2012 e storm water utility charge are all expenses. In the Internal Services Fund, the Legislature and provide for future infrastructure replacements. insurance coverage. The largest increases are in the Enterprise Funds where the number of users continues to grow creasing market values liability in elimination of the market value homestead credit program and the insertion of the operations Property Tax & Charges for Services Over the past few years, the City has continued to grow and this is expected to continue in 201 the State of Minnesota and a manageable debt service expense level into account the increase to offset s s Revenue Projections General Property TaxesProperty taxes are a revenue source in the General, Special Revenue, Debt Service and Capital Projects Funds. This revenue sGeneral Fund and is determined on the basis of the availability of other revenue sources and the expaccordance with Council policy and directives. The original goal for the 20manner consistent with the needs of the organizarecognizing the impact of servicestakeproducts ofCharges for ServicesCharges for services comes from a variety of souresidential and commercial developers, drainage and mapping services, ice and field house rentals, plat reviews and other misuse of city staff. for services come from water and sewer usage charges and a storm water utility charge. Thcharges by a sewer rate study and theach are reviewed annually to cover city equipment and cost of rate ,, Tax In 2014 at the end . the MVHC and 2019 In 2015, LGA 2018 , and 2018 decertified In 2017 2016 , 0 and 2011, the Governor . projects contemplated in the taxable market values for certain police and fire aid. This revenue in 2015 the other is reimbursing the district state and nce districts were it Two more districts were decertified in 2016. . tax increment fina based on the new state formula tate Highway aid and ate go note associated with - significant ed to economic development and redevelopment within tax increment you - two as , - and 2015 ($205,000) pay 47 and 2014 as notified by the St , one has a In 2012 r government agencies (federal, state, school, or county) such as Community Development is carried over and drawn upon as eligible projects are constructed , the City was able to get an advance on Municipal State Aid (MSA) construction allotment funds for 7 used to fund the growing infrastructure needs of the Road and Bridge Capital Projects Fund. tax increment districts and 201 was ergovernmental Revenue 4 t , 201 2 wo remaining and then reinstated again in 2016 ($2,698) Looking forward, the City will create tax increment districts only when a significant project me Any unused MSA allotment ecrease of tax increment revenue for 2013 ($1,470,700)Of the t d Tax Increments and In 350,938, $490,186 and 490,186 of the Market Value Homestead Credit (MVHC) to help offset the state budget deficits. In 2012, resulting in a eliminated for the City otted $196,150, $ again l Revenue Projections Tax IncrementsTax Increments are a revenue source in the Capital Projects Funds. of the year increment is used to pay for debt service on tax increment bond issues and expenses relatdevelopment districts. Annually, an extensive analysis is done reviewing the debt service requirements and the redevelopmentcapital improvement plan.for expenditures already made.deemed to achieve City goals.IntergovernmentalThis revenue source is present in the General, Special Revenue, Debt Service and Capital Projects Funds. In 2008, 2009, 201unalprogram was eliminated and a market value homestead exclusion program was put in its place. The new program reduced the homestead properties. The intergovernmental represents the remaining state aid distributions of Ssource also represents grants applied for and awarded from otheBlock Grants and DNR grants. In 201projects already in progress. LGA was reinstated for the City ($74,655) and wasLGA was again eliminated for the City. ed low street so creas de within each , 2 1 red to 20 e payment of bonds for related , as compa ual t (the city is funding the project through It also depends on whether residential ac ct . 3 1 and the fact that yields in the market are fluctuates based on the type and cost of budget is based on special assessment payment 8 1 installed proje - city ($17,177,570) as a or expenses) additional debt off - cts financed internally. The 20 48 sed to pay and the timing of when those assessments are paid being u Special Assessments back to the property). sold in prior years s costs installed project (developer is paying all the - Investment income is interest earned on investments and is allocated to funds based on average cash balances refunding bond being assessable to benefiting properties Investment Income and ts cash escrows of . Revenues from this source are dependent on interest rates and cash balances available for investment. The 20 Revenue Projections Investment IncomeThis revenue source is in all funds. funddue to on the investments the City is allowed by Statute to invest in.Special AssessmentsSpecial assessments are a revenue source in the Debt Service and Capital Projects Funds. Special Assessments are used for thschedules and a review of residential development within the City of Andover. Special Assessment revenue reconstruction projecdevelopment is done as a developerbonds or the PIR fund and assessing , 9 or f 1 ,000 00 $2 of on for lease payments ach new customer to This also includes rental fees . from the YMCA e remitted to the City monthly. Fine s ayment p homes using a building valuati are lot inventories will be drawn down. family residential residential - single new common space charges and natural gas and existing 50 actual 49 penalty is a charge to past due billings. park dedication fees, trail fees, water system trunk and sewer system trunk charges. In 20 new platted units 20 include eimbursements for is due to land sales in the Tax Increment Projects Capital Project Fund. Capital Projects Funds. These charges are fees paid under development agreements when new construction . They ) and r 6 budgeted amount is based on 9 1 and 201 3 source is found only in the General Fund. These revenues are based on City determined license rates; State regulated projects are initiated This revenue Miscellaneous Revenue evenue source is found in the The increase in 201 Miscellaneous revenues are revenues that do not fit in any other revenue type. Included in this This r s is a revenue source for the Water Enterprise Fund. When a house is brought on to city water services, a meter is sold to e based on a 30 year lease agreement Penalties is a revenue source for the Enterprise Funds. A Meter antennas. Fines are a revenue source in the General Fund only. Fines are collected through the State Court System and ar $635,000 Revenue Projections Miscellaneous RevenuesLicenses and Permits rates and the Uniform Building Code. The 20each.Fines revenue remains fairly consistent from year to year.User Charges for residential and commercial these fees are calculated on the assumption that there will be Meters facilitate accurate billing of service.Penalties Miscellaneous (wireless 50 51 52 53 54 55 56 GENERAL GOVERNMENTPUBLIC SAFETYPUBLIC WORKSOTHER 57 58 59 60 This page left blank intentionally. erations and operating equipment and are day op - to - 61 . government, public safety, public works, and park and recreation. ANNUAL BUDGET GENERAL FUND 9 201 CITY OF ANDOVER, MINNESOTA 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 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 dayrecorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund 62 This page left blank intentionally. --4% 75,25075,000 384,900787,918708,700134,300188,008727,082120,000 2019 (317,447) 7,589,5569,023,9705,145,8734,272,0291,430,5097,272,109 Adopted 11,190,03811,378,04618,967,60211,695,49311,695,493 $ $ $ -3% 75,07575,000 486,000784,954800,200147,900178,558693,148115,000230,000 2018 (200,060) 7,789,6168,721,2564,950,3104,069,8361,410,7097,589,556 Estimate 11,090,38511,268,94319,058,55911,239,00311,469,003 $ $ $ --2% 90,25075,000 377,900766,274746,700129,300178,558693,423100,000 2018 (180,077) 7,789,6168,721,2564,938,9194,074,7641,458,2097,609,539 Adopted 10,906,68011,085,23818,874,85411,265,31511,265,315 $ $ $ 63 0% (7,129) 75,28764,75174,910 City of Andover 546,378793,931843,023179,912196,930581,197750,000 2017 Actual 7,796,7458,332,6344,596,4543,793,1911,244,2237,789,616 10,835,91611,032,84618,829,59110,289,97511,039,975 $ $ $ 2019 Budget - General Fund Change in Fund Balance Description Statement of Revenues, Expenditures and Changes in Fund Balance Total Revenues:Total Expenditures: Fund Balance, January 1 RevenuesGeneral Property TaxesLicenses and PermitsIntergovernmentalCharges for ServicesFinesInvestment IncomeMiscellaneous RevenueOther SourcesTransfers InTotal Revenues and Other Sources:Total Available:ExpendituresPersonal ServicesSupplies and MaterialsPurchased ServicesOther Services and ChargesCapital OutlayOther UsesTransfers OutTotal Expenditures and Other Uses:Fund Balance, December 31 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 This page left blank intentionally. l outlay as legal restrictions mandate. 93 sources, such as taxes, fees, gifts and grants or contributions ANNUAL BUDGET 9 201 SPECIAL REVENUE FUNDS CITY OF ANDOVER, MINNESOTA 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 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 capita 94 This page left blank intentionally. 95 96 Department Head: 97 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 98 Department Head: 99 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 100 Department Head: 101 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 102 artment Head: p De 103 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A e/Code: yp T y Fund: Activit 104 Department Head: 105 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 106 Department Head: 107 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 108 Department Head: 109 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 110 Department Head: 111 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Activity Type/Code: 112 artment Head: p De 113 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A e/Code: yp T y Fund: Activit 114 This page left blank intentionally. term principal - 115 ANNUAL BUDGET principal and interest payments to bond holders is backed by the full 9 DEBT SERVICE FUNDS 201 CITY OF ANDOVER, MINNESOTA DEFINITION:A debt service fund accounts for the accumulation of resources for, and the payment of general longand interest. Repayment of the debt through faith and credit of the government unit. 116 This page left blank intentionally. 117 118 Department Head: 119 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Cost Center: Activity Type/Code: 120 artment Head: p De 121 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A e/Code: yp T y Fund: Cost Center: Activit 122 artment Head: p De 123 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A e/Code: yp T y Fund: Cost Center: Activit 124 125 126 Department Head: 127 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Cost Center: Activity Type/Code: 128 Department Head: 129 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A Fund: Cost Center: Activity Type/Code: 130 This page left blank intentionally. 131 ANNUAL BUDGET 9 general obligation debt, special assessments, special assessment debt, 201 CAPITAL PROJECTS FUNDS CITY OF ANDOVER, MINNESOTA DEFINITION:Capital Projects Funds can be used to account for acquisition or construction of major capital facilities financed mainly with governmental fund resources, grants, or other resources that are not part of proprietary funds or trust funds. 132 This page left blank intentionally. 133 134 City Engineer artment Head: p De 135 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4110Water Trunk Capital Projects Fund: e/Code: yp T Cost Center: y Activit 136 City Engineer artment Head: p De 137 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4120Sewer TrunkCapital Projects Fund: e/Code: yp T Cost Center: y Activit 138 City Engineer artment Head: p De 139 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4130Storm Sewer Capital Projects Fund: e/Code: yp T Cost Center: y Activit 140 City Engineer Department Head: 141 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A e 4140Road and BridgCapital Projects Fund: Cost Center: Activity Type/Code: 142 City Engineer Department Head: 143 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4150Park Dedication ProjectsCapital Projects Fund: Cost Center: Activity Type/Code: 144 Finance Director artment Head: p De 145 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4160Building Fund Capital Projects Fund: e/Code: yp T Cost Center: y Activit 146 artment Head: p De 147 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A ects j 4170Trail & Transportation Capital Pro Fund: e/Code: yp T Cost Center: y Activit 148 artment Head: p De 149 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A ects j Capital Pro 4180Capital Equipment Reserve Fund: e/Code: yp T Cost Center: y Activit 150 Finance Director artment Head: p De 151 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A ects j 43032018A G.O. Capital Improvement Plan BondsCapital Pro Fund: Cost Center: Activity Type/Code: 152 Finance Director artment Head: p De 153 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 44032019 G.O. Abatement BondsCapital Projects Fund: Cost Center: Activity Type/Code: 154 Finance Director Department Head: 155 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4501Tax Increment ProjectsCapital Projects Fund: Cost Center: Activity Type/Code: 156 Finance Director artment Head: p De 157 A D O P T E D 2 0 1 9 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 4601Permanent Improvement Revolving Capital Projects Fund: e/Code: yp T Cost Center: y Activit 158 This page left blank intentionally. 159 ANNUAL BUDGET 9 ENTERPRISE FUNDS collected. 201 CITY OF ANDOVER, MINNESOTA 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 160 This page left blank intentionally. 161 162 163 164 165 166 167 168 This page left blank intentionally. 169 ANNUAL BUDGET 9 201 INTERNAL SERVICE FUNDS CITY OF ANDOVER, MINNESOTA 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. 170 This page left blank intentionally. 171 172 173 174 175 176 This page left blank intentionally. 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 Note A:Note B: 195 196 197 198 sh ted e typically a specified future date (called h revenues are recorded when they are earned ent that permits officials to incur obligations against ngible asset charged as an expense during a particular period. of proposed expenditures for a given period and the proposed 199 life or ta - estate or other property by a government as a basis for levying taxes. GLOSSARY OF TERMS The method of accounting under whic g charges for services delivered or functions performed. Each activity has an assigned a government that has a monetary value. A valuation set upon real The total set of records and procedures that are used to record, classify, and report information on the : When revenues and other financing sources equal expenditures/expenses and other financing uses. An authorization made by the legislative body of a governm (1) The portion of the cost of a limited (1) The process of making the official valuation of property for taxation. (2) The valuation placed upon property term debt. - A cost center for recordin A plan of financial operation embodying an estimate Property owned by year period. - A written promise to pay (debt) a specified sum of money (called principal or face value) at ACCOUNTING SYSTEM:financial status and operations of an entity.ACCRUAL BASIS OF ACCOUNTING:(whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cadisbursements are made at that time or not).ACTIVITY:manager who is responsible for planning and conducting the various approved objectives or workloads.AMORTIZATION :(2) The reduction of a debt by regular payments of principal and interest sufficient to retire the debt by maturity.APPROPRIATION:and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granfor a oneASSESSED VALUATION:ASSESSMENT:as a result of this process.ASSETS:BALANCED BUDGETBOND:the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds arused for longBUDGET:means of financing them. is county - ontinuing payment is attached. - trial properties within the seven cash basis, expenditures are recognized xpenditures and the means of financing them. The capital 200 A plan of proposed capital e that remain unpaid on and after the date on which a penalty for non A pledge of the general taxing power of a government to repay debt obligations (typically used in und established to account for operations financed and operated in a manner similar to private business A distribution of 40% of the growth in commercial and indus The official written statement prepared by the budget office and supporting staff that presents the proposed Taxes A general discussion of the proposed budget presented in writing as a part of or supplement to the budget (1) A f A sum of money imposed or surrendered as a penalty. month period to which the annual operating budget applies and at the end of which a government determines - Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Where accounts are kept on the accrual or modified basis of accounting, the cost of goods received or services or recovered primarily through user charges. A 12 commendations made by the chief executive and budget officer. ESSAGE: An organizational unit within a department for purposes of administration and cost accounting. Emergency Medical Services BUDGET DOCUMENT:budget to the legislative body.BUDGET Mdocument. The budget message explains principal budget issues against the background of financial experience in recent yearsand presents reCAPITAL ASSETS:CAPITAL IMPROVEMENTS BUDGET:budget is usually enacted as part of the complete annual budget, which includes capital outlays. The capital budget normallybased on a capital improvement plan (CIP).DELINQUENT TAXES:DIVISION:EMS:ENTERPRISE FUND:enterprises. In this case, the governing body intends that costs of providing goods or services to the general public on a cbasis be financedEXPENDITURES:rendered whether cash payments have been made or not. Where accounts are kept on aonly when the cash payments for the above purchases are made.FINES & FORFEITS:FISCAL DISPARITIES:metropolitan area since 1971.FISCAL YEAR:its financial position and the results of its operations.FULL FAITH AND CREDIT:reference to bonds). - sure taxes not only n specific for financial the GAAP. ther resources Uniform minimum standards and guidelines eral governments. Grants are usually made for specified The authoritative accounting and financial reporting standard ities, generally called a reserve. A negative fund balance is balancing set of accounts recording cash and/or o - 201 uisition, use and balance of expendable financial resources and the t service and capital projects. Intended to be paid first from the revenues of the enterprise fund. They are backed overnment pledges its full faith and credit to the repayment of the bonds it issues, When a g Funds used to account for the acq except those accounted for in proprietary funds and fiduciary funds. Under current GAAP, there are four - The fund used to account for all financial resources, except those required to be accounted for in another fund. IGATION REVENUE BONDS: A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these An independent fiscal and accounting entity with a self Geographic Information System : Global Positioning System FUND:together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying oactivities or attaining certain objectives.FUND BALANCE:sometimes called a deficit.GENERAL FUND:GENERAL OBLIGATION BONDS:those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds that are to be repaid from and other general revenues.GENERAL OBLby the full faith, credit and taxing power of the City.GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):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 broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to meafinancial presentations. The primary authoritative body on the application of GAAP to state and local governments isG.I.S.:GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB):setting body for government entities.GOVERNMENTAL FUNDS:related current liabilitiesgovernmental fund types: general, special revenue, debGPSGRANT:contributions are made to local governments from the state and fedpurposes. ecline, s of property. from motor vehicle registration. overnments in the form of grants, entities, shared revenues or 202 A property tax relief program that replaced the former homestead . rnment, or to other governments, on a cost reimbursement basis. Revenues from other g A state program for cities and counties that is intended to provide an incentive for local ties, equipment, services and installations needed for the growth and functioning of a A state government revenue sharing program for cities and townships that is intended to A fund used to account for the financing of goods or services provided by one department or agency An intergovernmental revenue from the State to be used for maintenance of the municipal state aid The legal debt limit less outstanding debt subject to limitation. The basic facili The maximum amount of outstanding gross or net debt legally permitted. An assessor's estimate of what property would be worth on the open market if sold. The market value is set on Having the power to create laws. (1) (Verb) To impose taxes, special assessments or service charges for the support of government activities. (2) (Noun) Housing and Redevelopment Authority. The HRA may buy, own and sell land for housing and economic development housing and the percent of market value classified as commercial or industrial. OCAL GOVERNMENT AID (LGA): HIGHWAY MAINTENANCE:street system. The money comes from the state gasoline tax and feesHOMESTEAD AND AGRICULTURAL CREDIT AID (HACA):credit program and the agricultural credit program. HACA is tied to class rate reductions for certain classeHRA:purposes and engage in other housing and redevelopment activities consistent with MN law.INFRASTRUCTURE:community. Includes roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems.INTERGOVERNMENTAL REVENUES:payments in lieu of taxes.INTERNAL SERVICE FUND:to other departments or agencies of a goveLEGAL DEBT LIMIT:LEGAL DEBT MARGIN:LEGISLATIVE:LEVY:The total amount of taxes, special assessments or service charges imposed by a government.Lprovide an alternative to the property tax. LGA is distributed through a formula based on tax base, population, population dage of LOCAL PERFORMANCE AID (LPA):governments to develop performance measurement systemsMARKET VALUE:January 2 of the year before taxes are payable. d/or term - est on general long he State government to give the State government to give local s primary activities. by excluding a portion of property value from taxation. by providing a credit or reduction on the amount of property taxes. 203 a property tax relief program devised by t ): a property tax relief program devised by ): tenance and miscellaneous costs. EXCLUSION (MVHE A quantitative or qualitative measurement of activity. Expenditure classification based upon the types or categories of goods and services purchased. The basis of accounting under which expenditures other than accrued inter Routine and/or recurring transfers of assets between funds. Proprietary fund expenses related directly to the fund' A plan of financial operation embodying an estimate of proposed expenditures for the calendar year and A level of budgetary appropriations, which includes expenses for outside professional services, advertising, full force and effect of law within the boundaries of the municipality to which it applies. The dates on which the principal or stated value of investments or debt obligations mature and may be reclaimed. A formal legislative enactment by the government body of a municipality. If it is not in conflict with any higher form Serving as a goal; being the object of a course of action. personal services (salaries and wages);charges and services (utilities, maintenance contracts, travel);supplies and materials; and,capital outlay. Public Employees Retirement Association objects of expenditure include: ---- PERATING BUDGET: MARKET VALUE HOMESTEAD CREDIT (MVHCproperty tax payers relief from the burden of local property taxesMARKET VALUE HOMESTEAD local property tax payers relief from the burden of local property taxesMODIFIED ACCRUAL BASIS:debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material anavailable revenues, which should be accrued to reflect properly the taxes levied and revenue earned.MATURITIES:OBJECT OF EXPENDITURE:Typical OBJECTIVE:Othe proposed means of financing them (revenue estimates).OPERATING EXPENSES:OPERATING TRANSFER:ORDINANCE:of law, it has the OTHER CHARGES:insurance, utility costs, repairs mainPERA:PERFORMANCE MEASURES: - inesses ages, and related employee ties to defray part or all of the cost of a specific and transfers relating to the government's business and quasi transfers of assets between funds. 204 ination on net income, financial position and changes in financial ts directed to attaining specific purposes or objectives. routine - le insurance and apportioned to qualifying cities. recurring or non - ease in contributed capital. Non An intergovernmental revenue from the State to be used to maintain the Police Department. A A compulsory levy made against certain proper Radio frequency controlled traffic light on emergency vehicles. gnates an increase to a fund's assets which: Account for government's ongoing organizations and activities that are similar to those often found in the A level of budgetary appropriations, which includes expenses for salaries, w An equity account reflecting the accumulated earnings of the government's proprietary funds (those funds A formal estimate of how much revenue will be earned from a specific revenue source for some future Assets kept back or saved for future use or special purpose. Group activities, operations or organizational uni The term desi A set of guidelines used for making decisions. 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; anddoes not represent an incr ---- EMPTIVE DEVICES: - PERSONAL SERVICES:benefits such as the City's share of retirement and insurance.POLICE DEPARTMENT AID:premium tax of two percent is imposed on automobiPOLICY:PREPROGRAM:PROPRIETARY FUNDS:private sector. All assets, liabilities, equities, revenues, expensesbusiness activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar busin the private sector and the measurement focus is on determposition. Includes enterprise and internal service funds.RESERVES:RESIDUAL EQUITY TRANSFER:RETAINED EARNINGS:where service charges will recover costs of providing those services).REVENUE:REVENUE ESTIMATE:period; typically, a future fiscal year.SPECIAL ASSESSMENT:improvement or service deemed to primarily benefit those properties. of the x capacity nefit. is valued at. 205 plies. oning ordinance where such variance will not be contrary to the public interest and nd undue hardship. A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or The "taxation and notification law" which requires local governments to set estimated levies, inform The property tax rate that is based on the taxes levied as a proportion of the property value. A tax rate of : Current assets minus current liabilities. A valuation set upon real estate and certain personal property by the County Assessor as a basis for levying A measure of the services provided. A relaxation of the terms of the z A level of budgetary appropriations, which includes expenses for commodities that are used such as office supplies, The total amount to be raised by general property taxes for the purposes stated in the resolution certified to the County ital projects) that are legally restricted to expenditure for specified purposes. Compulsory charges levied by a government to finance services performed for the common be SPECIAL REVENUE FUND:major capSUPPLIES:operating supplies, repair and maintenance supTAX CAPACITY:property taxes. The assessor determines the estimated market (resale) value of the property. This value is converted to taby a formula specified in state law.TAX CAPACITY RATE:18.751% produces $18.75 of taxes on each $100 of tax capacity that a propertyTAX LEVY:Auditor.TAXES:TRUT H IN TAXATION:taxpayers about the impacts, and hold a separate hearing to take taxpayer input.VARIANCE:where, owing to conditions peculiar to the property and not the result of the actions of the applicant, a literal enforcementordinance would result in unnecessary aWORKING CAPITALWORKLOADS: 206 This page left blank intentionally.