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Home My WebLink AboutBudget - 2020 2020 Annual Operating Budget 1685 Crosstown Blvd NW, Andover, MN 55304 Phone: (763) 755-5100 * Fax: (763) 755-8923 www.andovermn.gov CITY OF ANDOVER 2020 Annual Operating Budget Table of Contents Introduction General Fund (Continued) Public Official Listing .................................................................................... 1 Engineering ........................................................................... .......................... 75 Organizational Chart ....................................................................................... 2 Facilities Management ................................................................ .................... 76 Budget Message .............................................................................................. 3 Police Protection .................................................................... ......................... 77 City Council Resolution Adopting Budget ..................................................... 29 Fire Protection ..................................................................................... ........... 78 Values and Goals ............................................................................................ 32 Protective Inspection ............................................................... ....................... 79 Budget Development Process ......................................................................... 33 Emergency Management ......................................................................... ....... 80 2020Budget Development Calendar .............................................................. 34 Animal Control ..................................................................................... .......... 81 Accounting, Auditing and Financial Reporting Policy ................................... 36 Streets & Highways ........................................................................................ 82 Operating Budget Policy ................................................................................. 37 Snow & Ice .............................................................................. ....................... 83 Revenue Policy ............................................................................................... 39 Street Signs ....................................................................... .............................. 84 Capital Improvement Policy ........................................................................... 39 Traffic Signals ............................................................................ .................... 85 Debt Administration ....................................................................................... 40 Street Lighting ....................................................................... ......................... 86 Investment Policy ........................................................................................... 41 Street Lights Billed ................................................................ ......................... 87 Revenue Projections ....................................................................................... 44 Parks & Recreation .................................................................... ..................... 88 2020Budget Summary by Fund Type ............................................................ 49 Natural Resource Preservation ........................................................................ 89 2020Budget Summary Revenues and Expenditures Fund Summary .......... 50 Recycling ........................................................................................................ 90 2020Budget Summary Revenues and Expenditures All Funds .................. 51 Unallocated ..................................................................................................... 91 2020Budget Summary Revenues and Expenditures by Fund Type ............ 52 Special Revenue Funds Revenue Comparison General Fund ............................................................ 53 Definition .......................................................................................... .............. 93 Expenditure Comparison General Fund ....................................................... 54 Statement of Revenues, Expenditures and Changes in Fund Balance All Expenditure Budget Summary By Department General Fund .................. 55 Special Revenue Funds ............................................................................ 95 Five Year Financial Projections General Fund ............................................ 56 Economic Development Authority Fund 2020FTE Summary ........................................................................................ 57 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 96 2020Capital Improvement Budget ................................................................. 58 Fund Overview .................................................................................... .... 97 General Fund Community Development Block Grant Fund Definition ........................................................................................................ 61 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 98 Statement of Revenues, Expenditures and Changes in Fund Balance ............ 63 Fund Overview ........................................................................................ 99 Mayor & Council ............................................................................................ 64 Community Center Fund Administration ................................................................................................ 65 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 100 Newsletter ....................................................................................................... 66 Fund Overview ................................................................. ....................... 101 Human Resources ........................................................................................... 67 Drainage and Mapping Fund Attorney .......................................................................................................... 68 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 102 City Clerk ....................................................................................................... 69 Fund Overview .................................................................. ...................... 103 Elections ......................................................................................................... 70 Lower Rum River Watershed Fund Financial Administration ................................................................................ 71 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 104 Assessing ........................................................................................................ 72 Fund Overview .................................................................. ...................... 105 Information Systems ....................................................................................... 73 Planning and Zoning ....................................................................................... 74 CITY OF ANDOVER 2020 Annual Operating Budget Table of Contents Special Revenue Funds (Continued) Capital Projects Funds Forestry Fund Definition ........................................................................................................ 133 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 106 Statement of Revenues, Expenditures and Changes in Fund Balance All Fund Overview ........................................................................................ 107 Capital Projects Funds ..................................................................... ........ 135 Right of Way Management / Utility Fund Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 108 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 136 Fund Overview ........................................................................................ 109 Fund Overview ............................................................................. ........... 137 Charitable Gambling Fund Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 110 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 138 Fund Overview ........................................................................................ 111 Fund Overview ............................................................................. ........... 139 Construction Seal Coating Fund Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 112 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 140 Fund Overview ........................................................................................ 113 Fund Overview ............................................................................. ........... 141 Debt Service Funds Road and Bridge Fund Definition ........................................................................................................ 115 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 142 Statement of Revenues, Expenditures and Changes in Fund Balance All Fund Overview ........................................................................................ 143 Debt Service Funds .................................................................................. 117 Park Dedication Projects Certificates / Capital Notes 2014A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 144 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 118 Fund Overview ........................................................................................ 145 Fund Overview ........................................................................................ 119 Building Fund Certificates / Capital Notes 2016A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 146 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 120 Fund Overview ........................................................................................ 147 Fund Overview ........................................................................................ 121 Trail & Transportation Certificates / Capital Notes 2020A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 148 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 122 Fund Overview ........................................................................................ 149 Fund Overview ........................................................................................ 123 Capital Equipment Reserve General Obligation Bonds 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 150 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 124 Fund Overview ........................................................................................ 151 Fund Overview ........................................................................................ 125 2020A G.O. Equipment Certificates General Obligation Bonds 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 152 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 126 Fund Overview ........................................................................................ 153 Fund Overview ........................................................................................ 127 2018A G.O. Capital Improvement Plan Bonds General Obligation Bonds 2019A G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 154 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 128 Fund Overview ........................................................................................ 155 Fund Overview ........................................................................................ 129 2019 G.O Abatement Bonds General Obligation Bonds 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 156 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 130 Fund Overview ........................................................................................ 157 Fund Overview ........................................................................................ 131 CITY OF ANDOVER 2020 Annual Operating Budget Table of Contents Capital Projects Funds (Continued) Appendix (Continued) Tax Increment Projects Principal Taxpayers ........................................................................................ 199 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 158 Building Permits, Property Values and Households ....................................... 199 Fund Overview ........................................................................................ 159 Demographics .............................................................................. ................... 200 Permanent Improvement Revolving Miscellaneous Statistical Data ........................................................................ 201 Statement of Revenues, Expenditures and Changes in Fund Balance ..... 160 Glossary of Terms ........................................................................................... 202 Fund Overview ........................................................................................ 161 Enterprise Funds Definition ........................................................................................................ 163 Statement of Revenues, Expenditures and Changes in Retained Earnings All Enterprise Funds ................................................................................ 165 Water Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 166 Fund Overview ........................................................................................ 167 Sanitary Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 168 Fund Overview ........................................................................................ 169 Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 170 Fund Overview ........................................................................................ 171 Internal Service Fund Definition ........................................................................................................ 173 Statement of Revenues, Expenditures and Changes in Fund Balance All Internal Service Funds ............................................................................. 175 Central Equipment Maintenance Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 176 Fund Overview ........................................................................................ 177 Risk Management Statement of Revenues, Expenditures and Changes in Fund Balance ..... 178 Fund Overview ........................................................................................ 179 Appendix Budget Year 2020 Operating Transfers ....................................................... 180 2020 2024 Capital Improvement Plan Development Calendar .................... 182 Capital Improvements Plan 2020-2024 .......................................................... 183 Summary of Outstanding Bond Issues ............................................................ 195 Future Debt Service Requirements ................................................................. 196 Computation of Legal Debt Margin ................................................................ 197 Property Tax Levies and Collections .............................................................. 198 Special Assessment Levies and Collections ................................................... 198 This page left blank intentionally. CITY OF ANDOVER Adopted 2020 City Budget Julie TrudeMayor Jamie BarthelCouncilmember Sheri BukkilaCouncilmember Valerie HolthusCouncilmember Michael KnightCouncilmember James DickinsonCity Administrator / City Clerk Joe JanishCommunity Development Director David BerkowitzDirector of Public Works / City Engineer Fred PatchBuilding Official Jerry StreichFire Chief 1 CITY OF ANDOVER 2020Organizational Chart Residents City Council City AttorneyCity AdministratorAdvisory Boards AdministrationBuilding InspectionsCity ClerkEngineeringFinanceFire ProtectionPlanningPublic WorksPolice Protection AdministrativeEmergencyClerk's OfficeEngineeringFinancialFire ProtectionPlanning & ZoningStreets/Highways ServicesManagementServicesAdministrationServices Human ResourcesProtectiveElectionsRight-of-WayAssessingCDBGSnow & Ice InspectionsManagementRemoval NewsletterAnimal ControlDrainage &FacilitiesStreet Lighting MappingManagement EconomicLower Rum RiverUnallocatedSignage DevelopmentWatershed Mgmt AuthorityOrganization CommunityForestryCapital EquipmentTraffic Signals CenterReserve CharitableTrail &Debt Service FundsParks & Recreation GamblingTransportation RecyclingConstructionTax IncrementWater Seal CoatingProjects InformationWater TrunkBuilding FundSewer Systems Storm SewerPermanentCentral Equipment Improvement Revolving Sewer TrunkG.O. CapitalNatural Resources NotesPreservation Road & BridgeRisk Management Park Dedication Projects 2 1685 CROSSTOWN BOULEVARD N.W. ANDOVER, MINNESOTA 55304 (763) 755-5100 FAX (763) 755-8923 WWW.ANDOVERMN.GOV TO:Mayor, City Council Members and Residents of Andover FROM:Jim Dickinson, City Administrator SUBJECT:Adopted 2020City Budget DATE:December 3, 2019 INTRODUCTION City Code 1-6-2 C. Major Areas of Accountability requires the City Administrator to submit an annual budget to Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 30, 2019. In response to these requirements, a proposed budget was presented to Council on September 3, 2019in advance of this deadline. Council held budget-planning sessions on March 26,April 23,May 28, June 25, July 23, and August 27to discuss budget priorities and adopted the preliminary 2020City Levy on September 3, 2019. Additional budget discussion was held with the Council on September 24, October 22, and November 26before the publichearing that was held on December 3, 2019.20City Budget and 2020Levy occurred on December 3, 2019. The official adoption of the 2020Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December28, 2019. This budget document should be viewed as more than just a collection of financial data, but as the financial plan in which the organization will implement and accomplish Council policies, as well as meet the articulated needs of the community and residents. In addition to the financial data contained within, this document includes information on the City organization, describes programs and services, and provides statistical values measuring activity performance and workloads. Most importantly, this budget reflects objectives regarding services to be provided in 2020. As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of their specific service needs, prioritized spending requests to achieve the most effective operational delivery of services, and then balanced the allocation of 3 Mayor, Councilmembers, Residents 2020 Adopted City Budget air, impartial and balanced manner that meets with the approval of Council and the residents we serve. GENERAL INFORMATION e was changedn Anoka that year, and the town name was changed to reflect Senator Grow because of his strong advocacy of the Union cause. At that time, the population was 330 and included the geographical area we know today as Ham Lake. In fact, the area of Ham Lake was considered a part of Grow Township until 1871. In 1972, the Grow Township Board of Supervisors recognized that the town was growing at a very rapid rate. They felt a village form of government would provide better services to the community. Board supervisors then voted in favor of proceeding with the incorporation storical interest. The historical interest, we believe, came from the Andover train station. a swamp, and name Andover first appeared in an article dated March 14, 1899 in the Anoka County Union Newspaper -before train tracks were ever built in the city. The article stated that the Eastern Minnesota line ofthe Great Northern Railway was in the process of constructing railroad tracks from the Coon Creek Cut-off to the North. The railway announced that new railroad stations with mathematical precision were to be located five miles apart from each other. Thenew stations (from Coon Creek to the North, along the new railroad line) were to be named Andover, Cedar, Bethel, Isanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4, 1899, the first train passed through the Andover station.Where the railway came up with the name Andover remainsunknown. 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, classifying it as a second-class city. 4 Mayor, Councilmembers, Residents 2020 Adopted City Budget BUDGET GUIDELINES 20Budget Development guidelines established by the City Council on April2, 2019, used by City Staff while preparing their proposed operating budgets, and presented witha brief description of the outcome of each guideline as part of the budget process: 1)A commitment to a City Tax Capacity Rateto meet the needs of the organizationandpositioning the City for long-term competitiveness e usingsustainable revenue sources and operational efficiencies. Note: TheAnoka County Assessor taxable market value figures for the City of Andover are reflecting a9.74%increase in total taxable market value.The 2020Property Tax Levy that was approved estimates increasing the current City tax rate by 0.71%. 2)A fiscal goal that works toward establishing the General Fund working capital fund balance at no less than 45% of planned 2020General Fund expendituresand the preservation of emergency fund balances (snow emergency, public safety, facility management and information technology) through targeting revenue enhancements or expenditure limitations in the 2019adopted General Fund budget. Note: With property tax revenues making up close to 80% of the total General Fund revenues,cash flow designations approaching 50% would be appropriate.The 2020budget exceeds this guideline, also emergency fund balances (approximately 3% of planned General Fund expenditures) are in place to stabilize a situation and not be a complete solution. 3)A commitment to limit the 2020debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to Note: The adopted 2020debt levy was21.33%of the gross tax levywhile accommodating the additional long-term debt for the 2018A GO Capital Improvement PlanBonds and the 2019A GO Tax Abatement Bonds that were sold by the City. 4)A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed. Equipment will be replaced based ona cost benefit analysis rather than a year-based replacement schedule. Note: The City Vehicle Purchasing Committee performed this analysisand has maderecommendations to the City Council as part of the 20202024Capital Improvement Plan (CIP) that was adopted at the October 15, 2019City Council meeting. 5 Mayor, Councilmembers, Residents 2020 Adopted City Budget 5)The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Note: The City continually maintains various financial models to determine the long-term impacts of presentday expendituresand financing decisions. Fiscal assumptions are based upona complex set of financial data including growth factors, tax capacity valuations, per capita spending, fund balance reserves and debt ratios. 6)Continued commitment to strategic planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and facility needs. Note: ACouncil Community Vision and Organizational Goals and Values documentwas adoptedby the City Councilat the December 3, 2019 City Council meeting.Direction provided in that document will continue to beintegrated into various department work plans and budgets. 7)A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive tochanging community conditions, concerns and demands, and to do soin a cost-effective manner. Note: Managementpaidspecial attention to fiscal values, commercial & residential development/redevelopment, collaboration opportunities, service delivery and the livability/image of the community. SIGNIFICANT EVENTS OF THE CURRENT YEAR Andover was one of the fastest growing cities in terms of population growth in the Twin Cities metropolitan area between 2000 through 2006. Since 2006,the pace of residential development has slowed and is attributableto regional and national economic factors.The City has takena revised outlook on where growth is most likely to occur in contrast to previously determined urban services staging areas. This hasrequiredthe City to identify alternate locations for sewer supported growth.In2019,the City issued 116new single-family building permits with a total valuation of $37,258,817compared to 60new single-family building permits with a total valuation of $19,703,857the prioryear. More detailed information is available on City growth laterin this budget message. Some additional noteworthy events/activities that occurred in 2019include: 6 Mayor, Councilmembers, Residents 2020 Adopted City Budget 1)In 2019,the Cityagain saw new residential developmentwhich included approval of 125urban lots within the Shadowbrook North, Winslow CoveSecond Additionand Villas at Crosstown Woods. Also 7rural lots were approved in a development known as the Estates at Cedar Ridge. The City currently has a supply of 208urban lots and 16rural lots (which includes the lots above). 2)In 2019, the City saw commercial, industrial and institutional construction throughout the communitytotaling close to $30 million in valuation.Many businessescame to Andover thatdid extensive tenant finishes or remodels in existing multi-tenant buildings. 3)In 2019, Legacy Christian Academy a K-12 private school started their expansion project. The expansion includes a three-story classroom addition (approximately 33,000 sq. ft.) between the existing buildings to replace temporary classrooms. 4)Andover High School will receive close to $30 million in additions totaling 67,000 square feetand other improvements addinganother 5,700 square feet of space in the school.Phase 1 of the additions and remodelingstarted in 2018 andwas completed in 2019.Part of theprojectis the removal of 12 portable classrooms. The school was originally designed for 1,400 students, but today 1,700 students attend the school. Phase 2 construction will take place in 2020 and when the construction is complete will be 2,000 students. 5)The City completed the master planning concept layout of the City Campus site in 2016 to prepare for the facility needs for the ultimate build out of the City. The master planning concept layout provides for the Public Works, Public Safety, General Government and Recreational long-term needs of the community. In 2017, the City hired two architectural firms to start the design for a Public Works Maintenance Facility, cold storage building and to explore a potential expansion of the Andover YMCA/Community Center. Both projects completed design in 2018. The Public Works component(Maintenance Facility, Fleet Storage Building and Vehicle Wash Bay)was out for bid in late 2018 and a bid awarded for construction in early 2019with a $10.5 million budget. The Community Center Expansion design continued throughout 2018, the project (a new sportscomplex with elevated walking track, additional fieldhouse court, team training space, youth center, remodeled Community Rooms,added meeting spacesand expanded parking) was out for bid in early 2019 and a bid awarded for construction in late Spring 2019with a $17.9 million budget. 6)In2018,working with the Anoka County Parks Department, two new outdoor gathering spaces at the Bunker Hills Activities Center started construction. The first area will remove the current ramps on the south side of the building and replace it with a 120-person capacity deck. This will provide additional space for meetings, family gatherings, weddings, and other events. The second area 7 Mayor, Councilmembers, Residents 2020 Adopted City Budget converts the existing greenhouse into an exterior patio area accessible from the inside as well as the outside. Thisprojectstarted in 2018 and was completedin 2019. 7)In 2017 and 2018, the City of Andover, in cooperation with the Anoka County Highway Department, worked through the planning of the Hanson Boulevard expansion and reconstruction. Right of Way clearing and utility work took place in 2018 with full construction of Phase 1 in 2019, Phase 2 will be underway and completed in 2020. This project is financed primarily by a federal grant. Trails and intersection improvements are also constructed as part of the project phases. 8)The City of AndoverEDA went through the public hearing process in 2011 to modify the City Development Plan to create redevelopment areas of the community and to facilitate the opportunityto acquire dilapidated and substandard multi-family homes within specified target areas. The EDA was successful in acquiring one 4-plex property in November of 2011 to start the redevelopment processwith hopes of continuing to add to the critical land mass necessary to start marketing for a redevelopment project. In late 2017 the EDA was successful in acquiring three more 4-plex propertiesand one additional 4-plex in 2018.The EDA continues to pursue the acquisition of properties in the redevelopment areas from willing sellers. 9)In 2016, City Staff startedwork with the State of Minnesota Board of Soil and Water Resources on a wetland restoration of the old Woodland Creek Golf Course parcel. The City acquired the old 74-acre golf course in late 2013, subsequently a 6-acre parcel was sold to a developer and a 6-unit subdivision called Shadow Ponds was the outcome. The remaining acreage was to be restored to a wetland with passive nature trails. Constructionbids were received inlate 2016with the first phase of construction completed the summerand fallof 2017. Other restoration elementsincluding the addition of a boardwalkcontinuedthroughout2018.Final restorationwork on the continued into 2019 and the trails wereopen to the public in the summer of 2019. 10)Andover residents continue to have one of the highest recycling ratesper person for all recyclable materials in Anoka County.In 2014,theCity added a new Recycling Centertoexpand the current recycling opportunities forAndover residents.In 2019,the City hostedmonthly recycling events (on weekends), generally with a specific focus, such as paper shredding andappliance or electronics collection. 11)A strategic planning session was held with the City Council, a final Council Community Vision and Organization Goals and Values document was approved at the July 7, 2015 City Council meeting. Direction provided in that document has beenintegrated into various department work plans and budgets. As part of the 2020BudgetDevelopment process the Council participated in a new strategic planning process throughout2019updating the Council Community Vision and Organization Goals and Values document. 8 Mayor, Councilmembers, Residents 2020 Adopted City Budget 12)The City's Comprehensive Annual Financial Report (CAFR) for theyear ended December 31, 2018was awarded the Government recognized significant cost savings in the form of reduced financial consulting fees. This is the seventeenthconsecutive year receiving 19will also achieve this award. 13)For the eighteenthyear in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2019 document as a policy document, an operations guide, as a financial plan and as a communications device. 14)Ongoing implementation of a single-family rental housing license program to provide property owners/landlords with educational materials and checklists on how to inspect and maintain the exterior of the property, a list of potential ordinance violations that may occur with a rental property, and an exterior inspection of the building and grounds with city staff. This program was authorized by the Andover City Council in 2009 and is reviewed annually, there were close to 260single family rental licenses issued throughout the City in 2019. 15)The City continues to makesignificant progress onthe process of digitallyimaging documents retained, this includes standard and legal documents and large construction plan documents. The imaging project has helped the City reducestaffing throughdata storage retrieval efficiencies,eliminated the need for office expansionand has expedited City research projects. 16)The City continues to utilize updates to ourfinancial management software to improve reporting and operating efficiencies. These updatescontinue to yield reduced personnel costs and more timely reports.In 2019,the City saw increased growth in the number of online and counter credit card payments for various City permits and services.Approximately 50 permits were done online. OVERVIEW The Adopted 2020Budget anticipates General Fund revenues in the amount of $11,794,736to meet anticipated budgeted expenditures in the amount of $12,155,896, thus a decreasein(use of) fund balance is planned. As a result, total General Fund balance reserves are projected to decrease to 63.3% in 2020as compared to 68.5% in 2019in conjunction with corresponding expenditures for those years. The Adopted 2020 General Fund Budget represents anincrease in expenditures of $460,403over last year. Designated capital operating levies increased $34,721 in 2020bringing the balance to $2,076,509. The 2020Debt Service Levy includes twoequipment notes, twoabatement bonds, capital 9 Mayor, Councilmembers, Residents 2020 Adopted City Budget improvement plan bondsand the open space referendum bonds; and increases the City debt ratio to gross City levy to 21.33% from 16.15% for the prior year. The increase in General Fund expenditures is primarily related to theincrease in the cost of health insurance. In t, the City hasdealt with significant state aid cuts in Market Value Homestead Credit(MVHC)and Local Government Aid (LGA),tight levy limitsenacted by the State Legislature that have prevented Andover previously expandingtax base.The availability of additional tax levy in 2013was significantly limited by the new market value exclusion programand decreasing taxable market values, but the decertification of a tax increment financing districtnegatedthose decreases to a net overall increase of .41%.In 2014, LGA was reinstated for the City and that funding ($73,490) wasused to help offset the growing needs of the Road and Bridge Capital Projects Fund for street improvements/replacements.In 2015, the City receivedzero LGA funding; in 2016, the City received$2,698; in 2017,2018and 2019, the City received zero LGA funding; andas notified by the State, the City will be receiving zero in 2020. General Fundexpendituretrends since 2014are as follows: ExpendituresExpenditures Before TransfersPopulationPer Capita Expenditures Per Capita $400 % Change $350 2014Actual9,881,404$ n/a 31,874$ 310.01 2015Actual9,890,003$ 0.09% 31,704$ 311.95 $300 2016Actual10,259,726$ 3.74% 32,335$ 317.29 2017Actual10,289,975$ 0.29% 32,470$ 316.91 $250 2018Actual10,875,244$ 5.69% 32,728$ 332.29 2019Estimated$ 11,767,9938.21% 32,975$ 356.88 $200 2020Adopted12,155,896$ 3.30% 33,228$ 365.83 2014201520162017201820192020 Note:The population figures wereestimates by Met Council. The 2020Adopted Budget provides for an adopted tax capacity rate of 35.559%, which compares to 35.310% for 2019(this rate comparison excludes the open space and watershed levies).The 2020increasingtax capacity rate is reflective of an increasein the adopted tax levy minimized bythegrowth in the tax capacity values. 10 Mayor, Councilmembers, Residents 2020 Adopted City Budget Tax Capacity ValuesTax Capacity Rates % Change% Change Tax Capacity Rates 50.0% 2014$ 21,978,322n/a43.197%n/a 45.0% 2015$ 25,705,35016.96%37.069%-14.19% 40.0% 2016$ 26,847,2734.44%38.314%3.36% 2017$ 27,920,1784.00%37.374%-2.45% 35.0% 2018$ 31,287,04312.06%34.627%-7.35% 30.0% 2019$ 32,975,2655.40%35.310%1.97% 2014201520162017201820192020 2020$ 36,188,6569.74%35.559%0.71% Note:The tax capacity ratesdo not include the open space and watershed levies. Some highlights of the Adopted 2020Budget are as follows: Capital Projects LevyThe 2020Budget specifically designates $2,036,509of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($275,000), Facility Maintenance Reserve ($355,000), Road and Bridge ($1,287,469), Pedestrian Trail Maintenance ($104,040) and Park Projects ($15,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases/decreases; with Capital Outlay, Pedestrian Trail Maintenance and Park Levies changedaccording to the City Council budget guidelines. Road and BridgeUnder the Capital Projects Levy, a total of $1,391,509is for transportation programming related to maintaining City streets, roadways and pedestrian trails. Approximately 7.48% ($104,040)of this levy is dedicated towards pedestrian trail maintenance. $315,110972,359dedicated to street overlays pursuant to previous Council direction of designating a one percent tax levy and capturing two percent of new tax capacity growth to transportation infrastructure needs. This commitment was initiated by the City Council in 1997 and increased from one percent to two percent of new tax capacity growth during 2006. As a percentage, this funding commitment represents approximately 9.61% of the Gross Tax Levy and increased $34,721ascompared to the 2019levy. Park ImprovementsUnder the Capital Projects Levy, $15,000is designated for miscellaneous park related capital projectsthat come up throughout the year.The 2020levy remains the same as the 2019levy. 11 Mayor, Councilmembers, Residents 2020 Adopted City Budget Capital Equipment/ProjectsUnder the Capital Projects Levy, 275,000 is designated to underwrite a wide range of capital improvement/equipment project expenditures. Through the annual $275,000designation, the City, over time, will be able to build a fund reserve to arange of capital improvement needs under a more controlled spending environment. This designated levy is to address a widerange of facility maintenance and equipment needs. The 2019levy decreased $525,000 as compared to the 2018levy.This reduction is due to the $525,000 being reallocated towards debt service as it was originally planned for a city campus expansion project. Facility Maintenance ReserveUnder the Capital Projects Levy, $355,000 is designated to help fund many maintenance related repairs identified in the recent facility condition assessment. It was new for 2018and remains unchanged ($355,000) as compared to 2019. eflects a 1.94% general increase ($61,908).The 2020Budget maintains the existing80hours per day of patrol service, sixhours per day of service provided by a Community Service Officer, two Patrol Investigators,School Liaison Officers in the middle and high school, and 50% of a Crime Watch position. Attorney-The City Attorney budget reflects a2.00% general increase($3,900)over the 2019budget. Council Memberships and ContributionsThe following are included as part of the 2020General Fund budget: North Metro Mayors Association$15,010-membership Metro Cities$9,542-membership Mediation Services$ 3,366-program contribution YMCAWater Safety Program$9,000-program contribution(youth services) Alexandra House$15,328-program contribution(domestic abuse programs) Youth First (Program Funding)$12,000-program contribution(youth services) NWAnoka County Community Consortium-JPA$10,000-program contribution(youth services) Teen Center Funding (YMCA)$8,100-program contribution(youth services) Lee Carlson Central Center for Family Resources$1,500-program contribution(mental health services) The following memberships/contributions are included as part of the 2020budget in other funds: Youth First City Partner Fee$2,000Charitable Gambling Fund-program contribution (youth services) 12 Mayor, Councilmembers, Residents 2020 Adopted City Budget Teen Center Funding (YMCA)$16,400Charitable Gambling Fund-program contribution(youth services) Alexandra House$5,600Charitable Gambling Fund-program contribution(domestic abuse programs) Senior High Parties$1,000Charitable Gambling Fund-donation (youth programs) Family of Promise$ 3,000Charitable Gambling Fund-program contribution(homelessness programs) Stepping Stone$1,000Charitable Gambling Fund -program contribution (homelessness programs) Hope for Youth$ 1,000Charitable Gambling Fund-program contribution (homelessness programs) ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost ReallocationThe 2020Budget does include one additional full-time staffmember for the Community Center. Cost-of-Living AdjustmentsThetotal compensationpackagefor 2020includesstep changes for eligible employeesand a 3.00%cost of living adjustment.Administration and Human Resources continually review position-based salaries in detail to confirm competitivenesswith other government entities. For a few positions to remain competitive with other governmental entities, budget has been included for salary adjustmentsin 2020. Health Insurance CostsPremiums for health insurance increased10%in 2020. Employer health care contributions are to be maintained at an employer ratio of 76% of the low-end family coverage and 100% of the single coverage. This will be the thirteenthyear the City will be offering a high deductible insurance plan with a health savings account (HSA); but in 2020, the City added a health reimbursement arrangement (HRA) . CITY GROWTH New institutional/commercial/industrial businesses moved to Andover in 2019.These businessincluded Star Nails, Mathnasium, Canine Crossing, Inspire Academy of Music, Andover Tobacco, Sora Pediatric Therapy, CBD RS, and Custom Smiles Dentistry. Andover High School is to receive close to $30 million in additions totaling 67,000 square feet, and other improvements to another 5,700 square feet of space in the school.Phase 1 additions and remodeling started in 2018 and was completed in 2019.Priority among the projects is an addition to the building to create safe and secure learning environments through the removal of 12 portable classrooms. The school was 13 Mayor, Councilmembers, Residents 2020 Adopted City Budget city to 2,000 students.There will also be an expansion of the s areas, additional student lockers; expansion of administrative and guidance areas to support the expanded capacity; and an auditorium expansion to increase seating and better serve the increased student capacity and community. school/community programs with opportunities before and after school; an additional gymnasium attached to existing gym space to accommodate the expanded capacity and address storage deficiencies.Phase 2 is expected to occur in the spring of 2020. Legacy Christian Academy started their expansion project during 2019 and will include additional classrooms.The expansion includes a three- story classroom addition(approximately 33,000 sq. ft.) between the existing buildings to replace temporary classrooms. The Anoka County Parks Department completed two new outdoor gathering spaces at the Bunker Hills Activities Center.The first area removed the current ramps on the south side of the building and replaced it with a 120-person capacity deck. This will provide additionalspace for meetings, family gatherings, weddings, and other events.The second area converted the existing greenhouse into an exterior patio area accessible from the inside as well as the outside. Construction on the deck and patio started in 2018 and wascompleted in the spring of 2019. New residential development Winslow Cove Second Addition and Villas at Crosstown Woods. Also 7 rural lots were approved in a development known as the Estates at Cedar Ridge. The City currently has a supply of 208 urban lots and 16 rural lots (which includes the lots above). In 2019,the City issued 116new single-family building permits with a total valuation of $37,258,817compared to 60new single-family building permits with a total valuation of $19,703,857for the preceding year. The City has not issued any new multi-family dwelling permits in last sevenyears.It is anticipated thatresidential developmentwill continue to rebound and The2010census shows thepopulationat 30,598. The growth within the last several years continues to produce a profound increase in demand for City services and has significantly added to ntenance costs. The chart below illustrates the significant growth that has occurred since 1995. 14 15 Mayor, Councilmembers, Residents 2020 Adopted City Budget Fund levy, $337,634will be funded by the capital equipment/project levy and reserves, $1,264,000 will be funded through general obligation equipment certificates 20-2024Capital Improvement Plan (CIP) process was instrumental in producing the outcomes outlined in the 2020Budget andshould be referred to for a detailed analysis of significant capital outlays/improvements.202024CIP, please see the appendix for a brief description of each item andat www.andovermn.govandview the complete document located in the Finance Department section. Most replacements and improvements will reduce operating costs. Some new projects will enhance city services to residents with direct impact on operations. Notable adopted capital outlay/improvementexpenditures are below followed by a list of improvement projectsand their impact on operations. Parks Department-$100,000 is programmed for improvements to City parks that include updating and repairing play structures, and accessibility improvements to various parks and playgrounds. This will allow the City to replace two play structures that have become maintenance issues and/or no longer meet ADA requirements. Replacing playground structures only saves about $500 in miscellaneous replacement parts on an annual basis since they still need to get routinely inspected. $180,000 is budgeted for the lighting of a baseball field at Andover Station North and will add approximately$4,000annually $285,000 is being contemplated through the issuance of equipment notes for the replacement of a water tanker ($175,000) and the addition of a large capacity mower ($110,000). The additional mower will add approximately $2,500 to the operational budget for fuel andmaintenance. Facility Management-$250,000 is budgeted for thereconstruction of the parking lots and roadway around the public works facility. $110,000 is budgeted for the addition of fencing aroundthenorth side of the new public works additionsand $85,000 for sealing all exterior brickand/or block municipal buildings. All funded by the Facility Maintenance Reserve levyand/or operations. Fire-$510,000 is budgeted for the replacement of a fire engine. The new engine is planned to have a carrying capacity of 2,000 gallons of water thus eliminating the need for a tanker. Elimination of a firetanker will save approximately $1,500 a year in both fuel and annual maintenance. Funding for this item is contemplated through the issuance of equipment notes. Emergency Management-$55,000 is budgeted for the construction of an additional emergency warning siren in the north central part of Andover where duplicatecoveragewas lacking.Funding for this project is through the Capital Equipment Reserve Capital Projects Fund and will add approximately $1,200 to the annual operating budget of the General Fund. 16 Mayor, Councilmembers, Residents 2020 Adopted City Budget Community Center$323,478isbudgeted for thereplacement of the ice refrigeration system from an R-22 system to an ammonia-basedsystem and the replacement of the current field house floor ($184,634).Funding for these projects are through the Capital Equipment Reserve Capital Projects Fund and the Community Center Operations Special Revenue Fund. Streets / Highway-$275,000 is budgeted for the replacement of a front-end loader.Modernization and fuel efficiencies will save approximately $500 a year. Funding for this item is contemplated through the issuance of equipment notes. PROJECT TITLECOSTDESCRIPTIONANNUALANNUAL SAVINGSCOST Replacement -Sinks / Fixtures$15,000 Replace all sinks and fixtures throughout the facility.$-$- Refacing Rink Boards$30,000Replace the white poly and yellow kick plates on the rink boards along with $-$- new netting above the glass on the ends. Replacement -Ice Arena Refrigeration$323,478 Convert the existing R-22 freon system to a new ammonia-based refrigeration $-$- system that is being installed in the new sports complex. Replacement -Field House Floor$184,634 Replace cracks/failed concrete in two corners of the fieldhouse floor and $-$- resurface the entire floor with new paint. Emergency Operations Center $10,000Continue remodeling a functional Emergency Operational Center (EOC) by $-$- Improvementimproving workable space at fire station #1. New-Emergency Sirens$55,000Install an additional emergency warning siren in the north central rural part of $-$1,200 Andover. New Development Projects$175,000New developments include the construction of sanitary sewer, water main, $-$5,000 storm sewers and streets. (City share.) Pedestrian Trail Maintenance$63,000Trail maintenance such as crack filling and fog sealing for the City's $1,000$- pedestrian trail system. Pedestrian / Park Trail Reconstruction$70,000Reconstruction of trail segments.$1,000$- Pedestrian Curb Ramp Replacements$19,000Replace existing pedestrian curb ramps to meet standards.$-$- New Pedestrian Trail and Sidewalk $405,000Planned trail and sidewalk connections provide key links within the existing $-$2,000 Segmentssystem. Railroad Underpass Trail$12,000Construct a railroad underpass to connect internal development trails from the $-$- Winslow Cove 2nd Addition to the east side of the tracks. Land was acquired in 2019. 50% design in 2020, construction in 2022. Annual Parking Lot Maintenance$250,000Reconstruction of parking lots and roadway around Public Works.$2,500$- Surface Seal All Brick Structures$85,000Apply a surface seal application to all brick and/or block municipal buildings.$-$- Replacement -Furnace / Condenser PW$6,000Replace a furnace/condensing unit at Public Works.$200$- Replacement -Furnace / Condenser PW$6,000Replace a furnace/condensing unit at Public Works.$200$- 17 18 Mayor, Councilmembers, Residents 2020 Adopted City Budget The General Fundprojected to use $361,160of fund balance tocover operations in 2020. The work done by staff relative to the 2020revenue and expenditure estimates has achieved the Council 2020budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 45% of planned 2020General Fund expenditures available fromthe 2019budget (the targeted fund balance is approximately $5,548,049). The estimates are also necessary to preserve the following emergency reserve fund balances for core services: Snow Emergency ($90K)-salt and sand needed for an abnormal snowfallseason Public Safety ($90K) -police, fire and civil defense unexpected costs Facility Management ($90K) -roofing, HVAC and emergency facility repairs Information Technology ($90K) -phone system and network server emergencies Economic Development ($300K) TIF Management Fee Migration Fiscal Disparities Fluctuation ($300K) changes in calculation In the Special Revenue Funds,the Economic Development Authority(EDA)Fund is projected to decrease $93,078largelydue to the decertification of the tax increment finance district in 2012,2014and 2016which werecharged an administrative fee by the EDA ($130,000). This also includes the construction of monument entrance signs located throughout the city, some include electronic reader boards. Staffing and expenditures will be migrated over to the General Fund over time.The Community Center is budgeted to decrease $215,171 as operations will be disrupted during the expansion phase of adding a sports complex and another court to the fieldhouse. Also, the existing field house floor will be repaired and the R-22 refrigeration system in the ice arena will be converted to an ammonia system to tie into the new sports complex. The Debt Service Fundsareprojected to increase by $672,715in 2020due to the timing of when leviesarecollected and when the debt service paymentsaremade. In the Capital Projects Funds, the Water Trunk Fund and Sewer Trunk Fund areincreasing($193,001and $267,910)as funds are being set aside for future trunk replacements. The Park Dedication Projects Fund is decreasing by $227,546 due to a portion of park dedication fees being used to fund the Community Center expansion project. The Building Fund is decreasing by $237,134due to the replacement of the Public Works parking lot and the R-The 2018A GO Capital Improvement Plan Bonds and 2019A GO Taxable Abatement Bonds are decreasing ($1,000,000 and $8,000,000) as construction is expected to be completed on both projects. The Tax Increment Projects Fund is decreasing($945,000)as new redevelopment/economic strategies take place. 19 Mayor, Councilmembers, Residents 2020 Adopted City Budget COMMUNITY VISION& GOALS While each budget year appears to only be dealing with the task athand, the City of Andover, development guidelines, does keep inmind throughout the process statement and short and long term organizational goals that are meant to say who and what the City of Andover is. a safe, growing community in which to live and work which enhances the quality of its citizenslives through recreational The long-term organizational valuesare: 1.EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES-the City of Andover exists to providequality services to the public in a professional and cost-effective manner. 2.FISCAL RESPONSIBILITY -the City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens are to have confidence in government. 3.ETHICS AND INTEGRITY-theCity of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4.TREATING THE CITIZEN AS OUR CUSTOMER -the City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and integrity. 5.OPEN AND HONEST COMMUNICATION-the City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. The short term (one to five years) organizational goals are: 1.FISCAL GOALS -the City recognizes the following fiscal values as the basis for delivering current and future services to the residents of Andover. A.Assure city financial stability through cost effective services. B.Focus spending on community needs; wants need to be supported by new or redirected sustainable revenues. 20 Mayor, Councilmembers, Residents 2020 Adopted City Budget C.Explore new revenue streamsand capture new growth for community needs. D.City investments need to be securely invested and focus on long term sustainability. E.While still providing excellent services to all Andover residents, look for and identify opportunities to reduce tax burdens whenever possible. F.Maintain property values and keep property taxes affordable through good fiscal management. G.Prioritize projects to best serve thecommunity needs when resources are limited. H.Plan for large projects (master planning) to maintain consistent revenues and expenses to avoid property tax spikes. I.All new infrastructure should consider future operations and maintenance in addition to initial cost. 2.COMMERCIAL/RESIDENTIALDEVELOPMENT/REDEVELOPMENTGOALS -the City wants to be supportive of those invested in or wanting to invest in thecommunity. A.Facilitate upgrades or redevelopment of blighted or underdeveloped parcelsto improve livability, community character and tax base. B.Work with business owners and property owners to assist them in being successful in thecommunity. C.Continually analyze existing commercial areas to determine if expansion is feasible and seek out new areas to better serve the community, including the consideration of an interim use zone for older industrial zones. D.Continually evaluate how to meet sewer/water and street needs of any proposed development and redevelopment projects. E.Review City development processes to help reduce unnecessary steps, time delays and development costs. F.Review development requirements to minimize impacts from overly burdensome requirements. G.Be aware of negative environmental impacts to the community including to proposed developments and the attempt to mitigate where economically feasible and practical. H.Evaluate city code, housing programsand housing types to determine useful programs and code updates thatthe City could adopt that have a positive impact on community market value, meet housing demandsand preserve neighborhoods. I.Evaluate whether the City is J.Secure approval and implementthe 2018Comprehensive Plan update, soliciting input from large property owners on land set aside for future development. K.Support 2020 Census efforts to count every person to ensure our population is not underestimated. L.Respond to regional and state initiatives that impact theCity or residents through organizational memberships. M.Review ordinances to support preservation of the environment through tree preservation and buffering in new developments, supporting the use of solar energy and encouraging various housing types. 21 Mayor, Councilmembers, Residents 2020 Adopted City Budget 3.COLLABORATION GOALS -the City is supportive of collaboration efforts that are cost-effective and improve efficiency in delivering services. A.Cautiously renew any new mandate to determine whether action is required. B.Foster positive relationships withschool districts, Anoka County, nearby citiesand local sports associations. C.Advocate for safe, efficient commuting routes for our residents and business owners. D.Support an effective and comprehensive transportation systemfor existing and future needs of the community. E.Support upgrade of transportation routes to the Twin Cities Metro for commuters. F.Work with waste/garbage haulers to achieve same day pick up available companies, in addition seek ways to streamline recycling pick up within the community. G.Evaluate how volunteers can help our community become a safer, more welcoming and attractive place to live. H.Continue to work with the railroad company that manages the tracks through Andover to reduce the interference trains have on traffic blockages and public safety. I.Continue collaboration with the YMCA on providing recreational services and be open to new ventures that utilize the community center for public benefit. J.Explore safe crossing solutions for pedestrians near active pedestrian crossing intersections through appropriate improvements and community education. 4.SERVICE DELIVERY GOALS -the City is committed to providing efficient and cost-effective city services. A.Evaluate parks maintenance to ensure the City is preserving park assets and not committing to unsustainable service delivery. B.Continue fostering positive relationships with athletic, youth, and other service organizations to obtain their input and seek their contributions with time and funds towards better service to the community and facility improvements. C.Alter packet format toimprove viewing function on tablets and reduce redundancy found in the format. D.Keep current with advances in technology where appropriate. E.Commit to providing the public with effective Public Safety through Fire and Law Enforcement services. F.Continually review current services and reduceor eliminateunnecessary or unwanted service deliveries. G.Encourage quality building standards. H.CompletePublic WorksMaintenance Facility and Cold Storage buildings on the city campus, and relatedparkway road from Nightingale Street to Tower Drive. I.Continue conversations regarding Community Center expansion with partners about their needs and finances. Establish . 22 Mayor, Councilmembers, Residents 2020 Adopted City Budget J.Review Community Center Advisory Commission structure to provide representation of all user groups. K.Continually evaluate whether we are following thePark Dedication Study when spending park dedication fundsand update the study when significant changes are made. L.Continue to maintain Kelsey Round Lake Park as a signature nature parkalong with attention toward providing interpretive elements within the park. M.Preserve current trails and complete trails where we have missing connections or need to improve pedestrian safety. N.Develop an effective Emergency Preparedness Plan to come to the aid of those in Andover when effected by community disasters. O.Review sustainability of city road/street assessment policy. P.Review rural lot development standards to support more sustainable future street maintenance. 5.LIVABILITY/IMAGE GOALS -the City recognizes that providing quality basic & desired services enhances the quality of life of our residents. A.Continue to support preservation of natural resources (land, water and air quality). B.Pursue management plan for Open Space properties that minimizes staff involvement and emphasizes users to create their own experience and support volunteer efforts to provide additional programming and activities. C.Improve community aesthetics by enhancing the corridor to city campus with sustainable landscape plantings, seeking volunteer assistance. D.Improve and coordinate a cohesive, attractive appearance along county corridors. E.Explore new methods of collecting public feedback. F.Continually review newsletter content, look and delivery. G.Plan and provide quality city services to residents and adapting to changing demographics. H.Look at ways information from resident surveyscan be incorporated into goals, plans and policies. I.Find ways to utilize volunteers and engage residents. J.Evaluate whether current policies and codes inhibit families from preserving, improving and upgrading the value of homes. K.Support improvements to the website that provide residents with information that is user-friendly so they can be informed about recreation and other opportunities. L.Coordinate a facilitated discussion with Council and Senior staff to review City policies related to best practices in governance, transparency and conflict resolution. M.Provide Cit 23 Mayor, Councilmembers, Residents 2020 Adopted City Budget LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible to ensure the stability of the City'sbasic services.Consideringpast state aid reductions and previous years levy limits imposed by the state legislature and thecurrent sporadic onsetoflevy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing enoughrevenues to fund City servicesas follows: sources such as special revenues, user fees and fee-for-service transactions. The City tax rate will increase in 2020reflective of the increase in thegross levy.City services will continue to be evaluated in terms of identifying all relevant funding sources to underwrite specific service expenditures, promoting alternatives to traditional funding methodologies, operational efficiencies, and encouraging public-private partnerships in service delivery systems. The use of an appropriate cost accounting structure that will lead to the creation of individual cost centers for all City department activities to accurately reflect the true cost of providing specific services. The City employs a cost accounting system that is department specific whichattempts to accurately reflect service delivery costs at the department and division levels. By including all supplemental services as they relate to personnel, charges and services, supplies and capital outlay will further distinguish the total costs of the service provided. The City has the ability to analyze these costs at the sub- category detail levels in support of overall policy goals. The development of work performance goals for each department to ascertain and measure how each operating division contributes to the City's overall public service mission. Each department is responsible for identifying relevant performance data to allow for an independent analysis of specific service outcomes. Data is reviewed to provide the Council and general public with a better understanding of the operational demands, resource inputs and performance outcomes associated with a specific service delivery system. The development of long-term financial models that identify anticipated trends in community growth and financial resources, designate appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. 24 Mayor, Councilmembers, Residents 2020 Adopted City Budget The City continually maintains various financial models to determine the long-term impacts of present day expenditure and financing decisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. The aggressive and appropriateinvestment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates of deposit, municipal bonds, federalagenciesand corporate paper and are designed to maximize municipal investment income. Long-term investing is designed to achieve the best yield in the current market, following a strategy that secures income streams at a higher rate of return for a longer period of time. Greater reliance on technology to enhance employee productivity in all areas of City operations and improve customer communications. The City has taken steps to invest additional time and energy on labor saving technology, such as new software, enhancedprogramming andopticalimaging paper files. Staff implemented an optical imaging solution that enabledthe City to reduce storage areas previously dedicated to paper files and provide a more economical and efficient data retrieval system. In addition,the City implemented financial management software to improve reporting and operating efficiencies.Both implementations have allowed theCity to reduce staffing dueto the increased efficiencies witheachnew system. The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended period of time to ensure that current and future taxpayers share equally in underwriting the cost of significant public expenditures. The City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existingand future taxpayers share equally in the cost. In addition, the City has established a separate capital projects levy to underwrite the cost of selected capital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. The five year Capital Improvement planning process is critical in achieving these results. Involving all employees in the process of re-engineering the work environment by encouraging cross-training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. 25 Mayor, Councilmembers, Residents 2020 Adopted City Budget City staff is encouraged to identify work practice issues that are inefficient or overly bureaucratic. The management team iscommitted to involving their employees and fostering an environment that challenges the status quo of City operations. Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointly purchase equipment and develop strategies to deal with local issues using a regional approach. The City has established several equipment and service delivery sharing arrangements with neighboring communities and has several joint powers agreements in place on a variety of local and regional issues in thearea of public safety, telecommunications, public access television and wastewater service initiatives. EXECUTIVE SUMMARY The budget,as presented,-effective, efficient and high-quality service delivery model. Essentially, the 2020Adopted Budget reflectsand ensure that tax dollars are wisely managed and expended in as prudent a manner possible to achieve high-quality service outcomes. It is interesting to note that the City of Andover continues to maintain one of the lowertax rates in Anoka County, as well as within the entire metropolitan area. City spending per capita continues to rank in the bottom halfwhen compared to similar cities. Budgetary Process Guiding the City budget process were Council policy guidelines that were described earlier in this message. The budget process was approached by employing strategies associated with extending the useful life of existing equipment; the utilization of cost center accounting that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; and purchasing new equipment and introducing new technologies that allow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in Cityoperations. The budget process included the opportunity for all department heads and supervisors to actively participate in a team process. Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and 26 Mayor, Councilmembers, Residents 2020 Adopted City Budget prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the sameframework in developing a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. In order to meet these growing challenges, the City must continually evaluate new ways and methods of conducting business in a more economical, competitive and cost-effective manner, while keepingthe quality of City services high and meeting the reasonable service expectations of the community. The budget process incorporates a management vision supported through: increased utilization, understanding and promotion of technology in the delivery of public services; emphasis on long-term strategic planning to appropriately identify, allocate and effectively utilize resources to meet future service needs; greater participation, accountability and flexibility in the work force that will allow for the development of innovative responses to the increased demand for cost-effective services; the need to focus on developing an alternate framework of special revenues and user fees as alternate funding mechanisms to gradually the recognition that the City should work to assist the community in meeting challenges as a partner and not as thesole provider; and astrong voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The 2020Adopted Budget is the product of the collective efforts of the management team and their respective staffs. They have worked diligently to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognition is appropriate with respect to the involvement ofLee Brezinka, Finance Manager and Finance staff in generating reliable financial data in which a sound and valid budget document was produced. 27 Mayor, Councilmembers, Residents 2020 Adopted City Budget The entire management team should be recognized for their diligent efforts in preparing a budget that meets the needs of this growing community yet recognizes the limited nature of financial resources. The City Council should be recognized for their frugal use of municipal resources and continual efforts to provide needed services tothe residents they represent and serve. I am appreciative of the commitment, good judgment and expertise that each member of theCouncil has contributed to the budget process. Respectfully submitted, Jim Dickinson City Administrator 28 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO.98-019 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2020BUDGET AND 2020PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR. WHEREAS, the preparation and adoption of budgets is recognized as sound financial practice; and WHEREAS, the City of Andover receives significant financial support from its residents through the payment of property taxes;and WHEREAS, the City of Andover has the responsibility to appropriately and effic WHEREAS, Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to December 28, 2019; and WHEREAS, Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 28, 2019. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2020City of Andover Budget and the 2020property tax levy totaling $14,479,586as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2020City of Andover Budget by fund type as follows: REVENUESEXPENDITURES General Fund$ 11,794,736General Fund$ 12,155,896 Special Revenue Funds1,688,000Special Revenue Funds2,012,733 Debt Service Funds3,609,491Debt Service Funds2,936,776 Capital Projects Funds6,993,212Capital Projects Funds17,055,998 Enterprise Funds5,589,331Enterprise Funds5,680,308 Internal Service Funds1,222,151Internal Service Funds1,410,519 Total$ 30,896,921Total$ 41,252,230 Adopted by the City of Andover this 3rdday of December 2019. CITY OF ANDOVER ATTEST:Julie Trude -Mayor _ Michelle Hartner Deputy City Clerk 29 Attachment A CITY OF ANDOVER, MINNESOTA 2020 Property Tax Levy 2020 Levy General Fund Levy General Operations$ 9,194,032 Park Repair/Replacement Items120,000 Total General Fund9,314,032 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds184,199 2012C Taxable G.O. Abatement Bonds976,780 2016A G.O. Equipment Certificate143,373 2018A G.O. Capital Improvement Plan Bonds433,603 2019A Taxable G.O. Abatement Bonds1,001,090 2020A G.O. Equipment Certificate350,000 Total Debt Service3,089,045 Other Levies Capital Projects Levy Capital Equipment/Project 275,000 Facility Maintenance Reserve355,000 Parks Projects 15,000 Road & Bridge1,287,469 Pedestrian Trail Maintenance104,040 Lower Rum River Watershed40,000 Total Other2,076,509 Gross City Levy$ 14,479,586 30 STATE OF MINNESOTA) COUNTY OF ANOKA ) CITY OF ANDOVER ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that I have carefully compared the attached Resolution No. 098-19adopting the City of Andover 2020Budget and 2020Property Tax Levy with the original record thereof preserved in my officeand have found the same to be true and correct transcript of the whole thereof. IN TESTIMONY WHEREOF, I have hereunto subscribed my hand this3rdday of December 2019. Michelle Hartner Deputy City Clerk 31 Long-Term Organizational Values 1.EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES The City of Andover exists to provide quality services to the public in a professional and cost-effective manner. 2.FISCAL RESPONSIBILITY The City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens are to have confidence in government. 3.ETHICS AND INTEGRITY The City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4.TREATING THE CITIZEN AS OUR CUSTOMER The City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and integrity. 5.OPEN AND HONEST COMMUNICATION The City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. Highest Priority External Values Goal #1To ensure . Goal #2To enhance communication with the public. Goal #3To support processes that involve citizen engagement. Goal #4ram. Goal #5To broaden and preserve Goal #6To balance and prioritize provision of cityservices with available resources. Goal #7To respect the environment. 32 Budget Development Process The Budget Process Andover City ordinance 216, Section 2., Major Areas of Accountability requires the City Administrator to submit an annual budget to the City Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that the City Council approve a preliminary budget and certify th a proposed levy to the Anoka County Property Records and Taxation Division by September 15. Beginning in levy year 2002, the State of Minnesota is allowing certain governmental units exemption from the public hearing and publication requirement if its total proposed property tax levy does not exceed its previous year final property tax levy by more than the percentageincrease in the implicit price deflator. The City of Andover did not fall under this exemption andheld a meeting pertaining to the 2020Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 3, 2019at 7:00 p.m. in the City Council Chambers. The date was advertised in the September City Newsletter, on public TV, and in the local paper. Final City Council action adopting the City Budget and Property Tax Levy occurred on December 3, 2019. The adopted 2020 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 28, 2019. stst Thebudget is prepared on an annual basis, and follows the calendar year, January 1to December 31. Policies are set by the City Council in one of two ways: 1)Policies are initiated by actions of the City Council at its regular council meetings through adoption of ordinances, resolutions, or motions. 2)Policies are also initiated, studied, and reviewed at special work sessions called for that purpose. preparation of the budget and evaluate the financial costs of the implementation of these policies and include them in the budget where economically feasible. In summary, policy issues are identified by the City Council, evaluated, and costed out by the Administrator and management team, and returned to Council for appropriations if necessary. If no appropriation is necessary, the new policy is implemented as soon as practical by theAdministrator. Each activity manager is given a monthly financial report of expenditures compared to the adopted budget. Expenditures related to City activities may not exceed appropriations without approval of the City Council. Below is the 2020Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 33 CITY OF ANDOVER 2020 Budget Development Calendar DateActivityResponsibility March 26, 2019Council Workshop to discuss budget guidelines.City Council / Staff April 2, 20192020 Budget Calendar.Admin / Finance Prepare base budgets and line item budget pages.Admin / Finance April 17, 2019Council adopts 2020 Budget Development Guidelines.City Council / Staff April 23, 2019Council budget progress report distributed and Council budget discussion.Council / Staff May 6. 2019Distribution of base budgets, personnel services, capital budget forms and line item budget pages to all Department Heads.Department Heads May 6. 2019Begin preparation of performance measures.Department Heads May 28. 2019Council budget progress report distributed and Council budget discussion.Council / Staff June 1, 2019*Department of Revenue notifies of required dates.State June 1, 2019Prepare preliminary 2020 revenue estimates.Finance / Department Heads June 26, 2019Council budget discussion.City Council / Staff July 2, 2019**Requests for additional full-time staff to City Administrator.Department Heads July 2, 2019**2020 Budget forms and prioritization of adjustments to base, capital outlay requests due to Finance.Department Heads July 2, 2019**Staff preparation of 2019 budget expenditure estimates.Finance / Department Heads Compile and prepare documents for Management Team.Finance July 5, 2019General Fund levy calculations.Finance 2020 Budget Decision packages prioritized and finalized.Admin / Mgmt Team July 12, 2019Deadline for updated performance measures to City Administrator.Admin / Department Heads Preparation of final draft of 2020 Proposed Budget for Council Workshop.Finance July 16, 2019Council budget progress distributed. Receives 2020 Proposed Budget.City Council / Staff August 3, 2019*County notifies City of school district & county public hearing dates.County *preliminary ** no exceptions Continued 34 CITY OF ANDOVER 2020 Budget Development Calendar DateActivityResponsibility August 20, 2019City Council follow-up workshop for review of 2020 Proposed Budget. City Council / Staff August 20, 2019City Council preview of Proposed 2020 Tax Levy Presentation.City Council / Staff September 1, 2019State Department of Revenue (DOR) to certify levy limits for 2020.DOR September 17, 2019 (Req.)City to adopt proposed 2020 tax levy and select public hearing dates.City Council September 24, 2019City Council / Staff September 30, 2019 (Req.)Proposed 2020 tax levy must be certified to County.Finance September 30, 2019 (Req.)City to file proposed 2020 special levies with DORFinance / DOR October 22, 2019City Council / Staff County Auditor to mail parcel specific notices.County November 26, 2019City Council preview of Public Hearing.City Council / Staff December 1 - 14, 2019* (Req.)City conducts Public Hearing during this time frame. City Council December 3, 2019City of Andover Public hearing on 2020 Tax Levy and Operating Budget.City Council December 18, 2019City Council adopts 2020 Tax Levy and Operating Budget.City Council December 28, 2019* (Req.)Deadline for staff to certify 2020 tax levy to State and County.Finance January 17, 2020*Finalize 2020 Actual Performance measures. Adopted budget printed and distributed.Finance January 17, 2020Publication of adopted budget information in newspaper.Finance January 24, 2020Department of Revenue budget form completed and submitted.Finance March 5, 2020Submit budget award application to GFOA. (Due 90 days after budget adoption.)Finance *preliminary ** no exceptions 35 Budgeting for City Operations The City is required to account for revenues and expenditures in accordance with generally accepted accounting principles. Because fund accounting is required for financial reporting, the appropriation budgets are organized and presented in like manner. The summary information section presents a summary of revenues and expenditures of each fund. A brief description of each fund type can be found at the beginning of each section. Basis of Accountingand Budgeting The financial reporting and budgeting systems of the City are organized on a fund basis. A fund is a fiscal and accounting entity with a self-balancing set of accounts. All funds in the budget were prepared using thefollowing basis of accounting, which is consistent with the accounting methods used for financial reporting. Government FundsAll governmental funds are maintained on a modified accrual basis with revenues recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, except for principal and interest payments on long-term debt and capital expenditures which are recognized as expenditures when due. Governmental funds include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The City of Andover adopted a budget for every governmental fund for the first time in 2002and continues to do so. Proprietary FundsProprietary funds are maintained on an accrual basis. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period in which the liability is incurred. For accounting purposes, the payment of principal on long-term debt and the purchase of capital assets is reflected on the balance sheet as it is reflecting bonds payable and capital assets with an outflow of cash. Interest on long- term debt in these funds is reflected in the expenses for the period that the payments are covering. Capital items are depreciated over their useful life with the depreciation amounts included in the expenses. For budgeting purposes, the payment of principaland intereston long-term debtand the purchase of capital assetsin the proprietary funds is reflected in the budgeted expensesas an outflow of resourcesto assist in the analysis of these funds when analyzing rate structures.Proprietary funds include Enterprise Funds and Internal Service Funds. The City of Andover currently has threeenterprise funds and two internal service funds. The City of Andover has adopted the following accounting, auditing and financial reporting policy: Accounting, Auditing and Financial Reporting Policy 1.The City of Andover will establish and maintain a high standard of accounting practices. Accounting standards will conform to Generally Accepted Accounting Principles (GAAP) as outlined by the Governmental Accounting Standards Board (GASB). 2.At the end of each fiscal year, a Certified Public Accounting firm that will include issuing a financial opinion will conduct an audit of the City records and a management and compliance report on internal controls. 3.The City of Andover will maintain a strong internal audit function. 4.The City will maintain a fixed asset system to identify and protect all City assets. 5.The Finance Department will prepare monthly financial reports for internal management purposes. 36 6.The City Council delegates the authority to assignfund balance, as required for prudent fiscal management, to the City Administrator and Finance Director.ces, and then use unrestrics in the following order: 1) committed, 2) assigned, 3) unassigned. 7.Annually, the Finance Department will prepare a comprehensive annual financial report. This report shall be made available to the elected officials, city management, bond-rating agencies, and the general public. 8.The City will annually submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA) to determine its eligibility to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Budget Monitoring and Amendments The Andover Financial Policies identifies an Operating Budget Policy which includes the process for monitoring and amending the budget, fund balance considerations and the capital improvement budget coordination, that policy is as follows: Operating Budget Policy 1.The formal budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. A.The City will attempt to maintain its present service level for priority and essential services subject to available revenues. New services will be considered for funding within available resources. B.The City of Andover will utilize a "bottom-up" resource allocation approach. Each department will have an opportunity to request personnel, goods, capital items and services needed to carry out its responsibilities in a timely manner. C.The resources to fund the budget will include all revenues reasonably anticipated from all sources and the unrestricted unassigned fund balance estimate to be carried forward at the beginning of the fiscal year. D.The City enterprise operations are to be self-supporting, including capital improvements and depreciation. Enterprise operations are to be reviewed annually for self-sufficiency. E.The City will utilize procedures that allow departments to integrate priorities and objectives into the budget requests. 2.The operating budget, authorizing expenditure of City monies, will be adopted annually by the City Council at the department level. Expenditures es to the adopted City Budget during the operating year is as follows: A.City Council approval is required for adjustments that are made to facilitate a department restructuring. 37 B.City Council approval is required for any budget adjustment that exceeds either that adjustments under $10,000 may be approved as provided in C. & D. below. C.City Administrator, or their designee when unavailable, approval is required for all budget adjustments or transfers made to personal servicesorcapital outlayunder $10,000 on a one-time basis. D.Budget adjustments and transfers among expenditure accounts may be authorized during the fiscal year by the City Administrator and the Finance Director if there is no E.Under no circumstances should budget adjustments be split to avoid approval limits. 3.The City will budget to maintain fund balances at adequatelevels to ensure that sufficient resources are available for current and future expenditures, whether planned or unforeseen. A.The City will budget to maintain an unassigned fund balance for each operating fund, to support operations until current tax revenues are received. Based upon the semi-annual collection of local taxes, each operating fund, relying on property tax related revenues, should maintain an unassigned fund balance at year-end necessary for approximately 6 monthsof the subsoperation. B.The City will budget to maintain an unassigned fund balance available for contingencies of between 1 percent and 3 percent of budgeted expenditures for each operating fund in order to finance unforeseen items and events that occur during the course of the year. It is not necessary for each fund to hold its own contingency. The General Fund may hold contingencies for other funds when appropriate. C.All unencumbered appropriations and encumbered purchases less than $1,000 lapse at year-end. However, the appropriation authority for all major capital projects and capital assets carries forward automatically to the subsequent year. Appropriations for encumbered purchases in excess of $1,000, which are not budgeted in the ensuing year, may be transferred to the subsequent year with the approval of the City Administrator and Finance Director. The current year appropriation is reduced and the subsequent year appropriation is increased. 4.The City will maintain a budgetary control system to ensure adherence to the budget and will prepare regular reports, which compare actual revenues, and expenditures to budgeted amounts. 5.The City will coordinate development of the Capital Improvement Budget with the development of the annual operating budget. Each capital improvement project is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel required and additional operating expenses. 6.The capitalization threshold for assets of the City of Andover, as defined in the Fixed Asset Policy, applies to all budgets and purchases associated with the Capital Expenditure series of accounts. 7.Annually, the Finance Department will prepare an Annual Operating Budget report. This report will be made available to elected officials, City management, bond-rating agencies, and general public. 8.The City will annually submit its annual operating budget document to the GFOA to determine its eligibility to receive the GF Budget Presentation Award. 38 Determination of Revenue Estimates The Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. Discussion regarding specific revenue sources can be found inthe summary information section of the budget. The Andover Financial Policies identifies a Revenue Policy that outlinesthat policy is as follows: Revenue Policy 1.The City will attempt to maintain a diversified and stable revenue system to shelter it from short-run fluctuations in any single revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of economic downturns. 2.The City will follow an aggressive policy of collecting revenues. 3.The City will periodically review fees and charges in order to keep pace with the cost of providing the service or that percentage of the total cost deemed appropriate by the City, and will conduct a public hearing or adopt an ordinance, as required by law, prior to setting fees or charges. 4.The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax fees and charges. 5.The City will allocate Citywide revenues to funds, which provide services to the entire City. 6.All revenues, reasonably expected to be unexpended and unencumbered at the end of the year, will be anticipated as "availablefund balance" in the budget of the following year. 7.The City will attempt to invest all cash holdings in accordance with the cash and investment policy and maximize those holdings with an effective payment policy. Capital Improvement Program ff with a process for identifying and prioritizing capital projects in order to coordinate the financing and timing of improvements, which maximizes the return to the public. The process will enable the City to evaluate long- term cost and benefits of projects being adopted for the coming year (2019) against those projects planned between 2020and 2023. The Capital Improvement Program follows the following policy: Capital Improvement Policy 1.A Capital Improvements Plan (CIP) will be developed for a period of five years. As resources are available, the most current year of the CIP will be incorporated into the current year operating budget as the Capital Improvements Budget (CIB). The CIP will be reviewed and updated annually. Years two through five are for planning purposes only. 2.The City will maintain its physical assets in a manner, adequate to protect the City's capital investment and to minimize future maintenance and replacement costs. The City will provide for maintenance and replacement from current revenues where possible. 39 3.To be considered in the Capital Improvements Program, a project must have an estimated cost of at least $5,000 in one of the calendar years of the project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items that are operating expense (such as maintenance agreements, personal computer software upgrades, etc.) will not be considered within the CIP. 4.Capital projects, which duplicate other public and/or private service, will not be considered. 5.The City will identify the estimated costs and potential funding sources for each capital project prior to inclusion in the CIP. The operating costs to maintain capital projects shall be considered prior to the decision to undertake the capital projects. 6.Capital projects and/or capital asset purchases will receive a higher priority if they meet a majority of the following criteria: A.Mandatory project B.Maintenance project (approved replacement schedules) C.Improve efficiency D.Provide a new service E.Policy area project F.Broad extent of usage G.Length of expected useful life H.Positive effect on operation and maintenance costs I.Availability of county/state/federal grants J.Elimination of hazards (improves public safety) K.Prior commitments L.Replacement due to disaster or loss 7.The CIP is to be presented by the City Administrator and Management Team annually to the City Council for approval. Any substantive change to the CIP after approval must be approved by the City Council. Debt Administration The City of Andover has adopted the following Debt Policy: 1.The following Debt Policy should be used to provide guidelines for debt decisions. There are no absolute rules or formulas in determining the level of City debt. Each situation requires a thorough review of the City's debt position, financial health and economic forecast. The limitations of this policy refer to City of Andover debt only (excludes EDA and HRA). 2.The City will maintain good communications with bond rating agencies and will try to improve or maintain its current AA+bond rating so that the City's borrowing costs are minimized and access to credit is preserved. 3.The City willnot use short-term borrowing to finance operating needs except in the case of an extreme financial emergency beyond the City's control or reasonable ability to forecast. 4.The City may use long-term debt financing when all of the following conditions exist: 40 A.When non-recurring capital improvements are desired, and B.When it can be determined that present and future citizens will receive a benefit from the improvement, and C.When the cost benefit of the improvement, including interest cost, is positive. 5.The issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. For purposes of this policy, current resources are defined as that portion of fund balance in excess of appropriate required reserves and designations. The City of Andover will not pledge indebtedness to outside agency financing, unless the benefit is for City of Andover residents. 6.The City of Andover will limit the amount of total net general obligation debt to no more than 3% of the estimated market value. (Minnesota Statutes limit on debt is 3% of the estimated market value). 7.The payback period of the bonds or notes will not exceed the estimated useful life of the capital asset constructed or purchased. 8.The City will conservatively project the revenue sources utilized to repay the debt (i.e., taxes for G.O. debt are levied at 105% of the required debt service). 9.Capital notes and leases may be used to finance equipment purchases anytime the total cost of the purchase exceeds $10,000, the useful life of the equipment is greater than five years, the financing rate is less than or equal to the current and projected investment rates, or the purchase is of a non-recurring nature(copy machines and information technology equipment). 10.The City will follow a policy of full disclosure on every Comprehensive Annual Financial Report and official statement. Investment Policy The City of Andover has adopted the following Investment Policy: 1.Scope ment retirement funds. 2.General Objectives the primary objectives, in priority order, of investment activities shall be safety, liquidity and yield: A.Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. B.Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. C.Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity. 3.Standard of Care A.Prudence. The standard of prudence, meaning not for speculation and with consideration of the probable safety of the capital as well as the probable investment returns, shall be used by investment officials. B.Ethics and Conflicts of Interest. Employees involved in the investment process shall have no personal business activity thatcould conflict with the proper execution and management of the investment program or could impair their ability to make impartial decisions. 41 C.Delegation of Authority. Authority to manage the investment program is granted to the Finance Directorwho shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy and applicable state statutes. 4.Safekeeping and Custody A.Authorized Financial Dealers and Institutions. A list will be maintained of financial institutions authorized to provide investment services. B.Internal Controls. The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. C.Delivery vs. Payment. All trades, where applicable, will be executed by delivery vs. payment (DVP) to ensure that securitiesare deposited in an eligible financial institution prior to the release of funds. 5.Suitable and Authorized Investments A.Investment Types. The following investments will be permitted by this policy and are those defined by state and local where applicable: U.S. government obligations, U.S. government agency obligations and U.S. government instrumentality obligations which have a liquid market with a readily determinable market value; rated in the highest tier (e.g., A-1,P-1, or F-1, or higher) by a nationally recognized rating agency; Investment-grade obligations of state, local governments and public authorities; Repurchase agreements whose underlying purchased securities consist of the investment types listed above. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar- denominated securities; and Local government investment pools, either state-administered or through joint powers statutes and other intergovernmental agreement legislation. B.Collateralization. Full collateralization will be required on non-negotiable certificates of deposit. C.Repurchase Agreements. Repurchase agreements shall be consistent with GFOA Recommended Practices on Repurchase agreements. 6.Investment Parameters A.Diversification. Investments shall be diversified by security type and institution. B.Maximum Maturities. To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing, or having average lives, of more that five years from the date of purchase. 7.Reporting A.Methods. The Finance Director shall prepare an investment report, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made quarterly. B.Performance Standards. The investment portfolio will be managed in accordance with the parameters specified within this policy. C.Marking to Market. The market value of the portfolio shall be calculated at least quarterly. 42 8.Policy Considerations A.Exemption. Any investment currently held that does not meet the guidelines of this policy (originally adopted April 6, 1999) shall be exempted from the requirements of the policy. B.Amendments. This policy shall be reviewed as needed or requested by City Council. Distribution of Budget Information Copies of the proposed budget are typically available to the general public beginning the second week in August in the offices of the City Administrator and Finance Director. Notices of the public hearings are published in he Anoka County Union, along with notices posted on public bulletin boards.Citizens are invited to provide written or oral comments at the public hearings. The County Property Records and Taxation Division is required to notify each property owner of the impact of the proposed tax levy upon each individual parcel of property along with the final budget hearing dates. Awards The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Andover for its annual budget for the fiscal year beginning January 1, 2019. This is the eighteenthconsecutive time the City of Andover has received this award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 43 Revenue Projections As mentionedearlier, the Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. City of Andover City of Andover 2020 Revenue by Source Major Revenue Sources Comparison Misc Rev Spec Assess 8% Misc Rev 2% Intergov'l Rev Spec Assess 8% Prop Taxes 52% Invest. Income Intergov'l Rev 1% Tax Increments Invest. Income 0% Tax Increments Charges for Svc Prop Taxes Charges for Svc 29% $0.00$5.00$10.00$15.00$20.00 Millions 2020 Budget 2019 Est 2018 Actual 2017 Actual Following are individual graphs of the major revenue sources over the last fewyears. Included are brief descriptions of each source and explanations of any variances over the same time period. 44 Revenue Projections Property Tax & Charges for Services $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2014 Actual2015 Actual2016 Actual2017 Actual2018 Actual2019 Estimate2020 Budget Property TaxCharges for Services General Property Taxes Property taxes are a revenue source in the General, Special Revenue, Debt Service and Capital Projects Funds. This revenue source is primarily used in the General Fund and is determined on the basis of the availability of other revenue sources and the expenditure level necessary to conduct City business in accordance with Council policy and directives. The original goal for the 2020budget for property taxes was commitment to maintain the City Tax Rate in a manner consistent with the needs of the organization to ensure the long-term competitiveness, efficiency, staffing and capital requirements. The Council, by recognizing the impact of increasing market valuesand acknowledging community economic concerns, were able to establish an appropriate baseline ofcity servicesand a manageable debt service expense level.The general property tax revenue does increase 10.21% ascompared to2019. This revenue source takesinto account the elimination of the market value homestead credit program and the insertion of the market value homestead exclusion program (both products ofthe State of MinnesotaLegislature in 2012). Charges for Services Charges for services comes from a variety of sources in the General and Special Revenue Funds; such as project engineering and inspection services to residential and commercial developers, drainage and mapping services, ice and field house rentals, plat reviews and other miscellaneous charges for dedicated use of city staff. Over the past few years, the City has continued to grow and this is expected to continue in 2020and beyond. In the Enterprise Funds, charges for services come from water and sewer usage charges and a storm water utility charge. The water charges are determined by a water rate study, the sewer charges by a sewer rate study and the storm water utility charge arebased on the amount of funding needed to comply with federal storm water requirements, each are reviewed annually to cover all expenses. In the Internal Services Fund, thecharges for services representdepartment charges for the maintenance of city equipment and cost of liability insurance coverage. The largest increases are in the Enterprise Funds where the number of userscontinues to growand the ratesincrease to offset operationsand provide for future infrastructure replacements. 45 Revenue Projections Tax Increments and Intergovernmental Revenue $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2014 Actual2015 Actual2016 Actual2017 Actual2018 Actual2019 Estimate2020 Budget Tax IncrementsIntergovernmental Revenue Tax Increments Tax Increments are a revenue source in the Capital Projects Funds. In 2012and 2014,twosignificant tax increment finance districts weredecertified at the end of the year resulting in adecrease of tax increment revenue for 2013 ($1,470,700)and 2015 ($205,000).Two more districts were decertified in 2016. Tax increment is used to pay for debt service on tax increment bond issues and expenses related to economic development and redevelopment within tax increment development districts. Annually, an extensive analysis is done reviewing the debt service requirements and the redevelopment projects contemplated in the capital improvement plan.Of the two remainingtax increment districts, one has apay-as-you-go note associated with itand the other is reimbursing the district for expenditures already made.st is deemed to achieve City goals. Intergovernmental This revenue source is present in the General, Special Revenue, Debt Service and Capital Projects Funds. In 2008, 2009, 2010 and 2011, the Governor unallotted $196,150, $350,938, $490,186 and 490,186 of the Market Value Homestead Credit (MVHC) to help offset the state budgetdeficits. In 2012, the MVHC program was eliminated and a market value homestead exclusion program was put in its place. The new program reduced the taxable market values for certain homestead properties. The intergovernmental represents the remaining state aid distributions of State Highway aid andstate police and fire aid. This revenue source also represents grants applied for and awarded from other government agencies (federal, state, school, or county) suchas Community Development Block Grants and DNR grants. In 2014and 2017, the City was able to get an advance on Municipal State Aid (MSA) construction allotment funds for projects already in progress. Any unused MSA allotmentis carried over and drawn upon as eligible projects are constructedin 2015,2016and 2018.In 2014, LGA was reinstated for the City ($74,655) and wasused to fund the growing infrastructure needs of the Road and Bridge Capital Projects Fund.In 2015, LGA wasagain eliminated for the City and then reinstated again in 2016 ($2,698) as notified by the Statebased on the new state formula.In 2017,2018, 2019and 2020, LGA was again eliminated for the City. 46 Revenue Projections Investment Income andSpecial Assessments $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2014 Actual2015 Actual2016 Actual2017 Actual2018 Actual2019 Estimate2020 Budget Investment IncomeSpecial Assessments Investment Income This revenue source is in all funds. Investment income is interest earned on investments and is allocated to funds based on average cash balanceswithin each fund. Revenues from this source are dependent on interest rates and cash balances available for investment. The 2015actual,as compared to 2014,decreased due to cash escrows of refunding bondssold in prior years being used to pay-offadditional debt ($17,177,570) and the fact that yields in the market aresolow on the investments the City is allowed by Statute to invest in. Special Assessments Special assessments are a revenue source in the Debt Service and Capital Projects Funds. Special Assessments are used for the payment of bonds for related capital 20budget is based on special assessment payment schedules and a review of residential development within the City of Andover. Special Assessment revenue fluctuates based on the type and cost of street reconstruction projectsbeing assessable to benefiting propertiesand the timing of when those assessments are paid.It also depends on whether residential development is done as a developer-installed project (developer is paying all the expenses) oras a city-installed project(the city is funding the project through bonds or the PIR fund and assessing costsback to the property). 47 Revenue Projections Miscellaneous Revenue $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2014 Actual2015 Actual2016 Actual2017 Actual2018 Actual2019 Estimate2020 Budget License & PermitsFinesUser ChargesMeters, Permit Fees, PenaltiesMiscellaneous Revenue Miscellaneous Revenues Licenses and Permits This revenue source is found only in the General Fund. These revenues are based on City determined license rates; State regulated rates and the Uniform Building Code. The 2020budgeted amount is based on 50new single-family residential homes using a building valuation of $200,000 each. Fines Fines are a revenue source in the General Fund only. Fines are collected through the State Court System and are remitted to the City monthly. Fine revenue remains fairly consistent from year to year. User Charges This revenue source is found in the Capital Projects Funds. These charges are fees paid under development agreements when new construction for residential and commercial projects are initiated. Theyincludepark dedication fees, trail fees, water system trunk and sewer system trunk charges. In 2020, these fees are calculated on the assumption that there will be 20new platted unitsand existing residential lot inventories will be drawn down. Meters Meters is a revenue source for the Water Enterprise Fund. When a house is brought on to city water services, a meter is sold to each new customer to facilitate accurate billing of service. Penalties Penalties is a revenue source for the Enterprise Funds. A penalty is a charge to past due billings. Miscellaneous Miscellaneous revenues are revenues that do not fit in any other revenue type. Included in this arepaymentsfrom the YMCA for lease payments ($635,000based on a 30 year lease agreement) and reimbursements for actual common space charges and natural gas.This also includes rental fees for wirelessantennas. The increase in 2016is due to land sales in the Tax Increment Projects Capital Project Fund. 48 CITY OF ANDOVER 2020 Budget Summary By Fund Type City of Andover - Budgeted Funds Total Revenues: $30,896,921 Total Expenditures: $41,252,230 Governmental FundsProprietary Funds General FundSpecial Revenue FundsDebt Service FundsCapital Projects FundsEnterprise FundsInternal Service Funds Revenues:$11,794,736Revenues:$1,688,000Revenues:$3,609,491Revenues:$6,993,212Revenues:$5,589,331Revenues:$1,222,151 Expenditures:$12,155,896Expenditures:$2,012,733Expenditures:$2,936,776Expenditures:$17,055,998Expenditures:$5,680,308Expenditures:$1,410,519 -General Government-EDA-G.O. Improvement Bonds-Water Trunk-Sewer Fund-Central Equipment / Maint. -Drainage & Mapping-G.O. State Aid Bonds-Storm Sewer -Public Safety-LRRWMO-G.O. Equip Certificates-Sewer Trunk-Water Fund-Risk Management -Forestry-G.O. Referendum Bonds-Road & Bridge -Public Works-ROW Mgmt / Utility-G.O. Abatement Bonds-Trail & Transportation-Storm Sewer Fund -Construction Seal Coating-Cap Equip Reserve -Other-Community Center-Tax Increment -CDBG-Park Dedication -Charitable Gambling-PIR Projects -Building -Capital Notes / Bond Projects Fund Definitions General Fund - accounts for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and other. Special Revenue Funds - accounts for revenue sources that finance particular functions and projects. Debt Service Funds - accounts for the accumulation of resources for, and the payment of general long-term debt. Capital Projects Funds - accounts for the acquisition or construction of major capital facilities financed mainly with governmental fund sources, general obligation debt, special assessments, and other. Enterprise Funds - accounts for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. Internal Service Funds - accounts for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. 49 CITY OF ANDOVER 2020 Budget Summary Revenues and Expenditures Fund Summary AdoptedEstimateBudget Actual 2018201920192020 Fund Balance/Net Assets, January 1$ 43,041,576$ 54,929,619$ 54,929,619$ 51,098,796 Revenues & Other Sources General11,451,96411,378,04611,691,21611,794,736 Special Revenue1,684,7381,612,0501,627,5951,688,000 Debt Service1,898,9412,415,7292,415,7293,609,491 Capital Projects15,730,74532,111,51124,313,3056,993,212 Enterprise6,157,2855,448,0545,448,0545,589,331 Internal Service1,205,6821,173,6331,173,6331,222,151 Total Revenues & Other Sources:38,129,35554,139,02346,669,53230,896,921 Total Available:81,170,931109,068,642101,599,15181,995,717 Expenditures & Other Uses General11,105,24411,695,49311,767,99312,155,896 Special Revenue1,539,6151,726,4791,658,1592,012,733 Debt Service1,804,6501,803,8012,017,4842,936,776 Capital Projects5,835,64634,838,61027,789,55917,055,998 Enterprise4,774,9855,670,3635,986,0575,680,308 Internal Service1,181,1721,281,1031,281,1031,410,519 Total Expenditures & Other Uses:26,241,31257,015,84950,500,35541,252,230 Fund Balance/Net Assets, December 31$ 54,929,619$ 52,052,793$ 51,098,796$ 40,743,487 Change in Fund Balance $ 11,888,043$ (2,876,826)$ (3,830,823)$ (10,355,309) 27.62%-5.24%-6.97%-20.27% 50 CITY OF ANDOVER 2020 Budget Summary Revenues and Expenditures - All Funds ActualBudgetEstimateBudget 2018201920192020 Fund Balance/Net Assets, January 1$ 43,041,576$ 54,929,619$ 54,929,619$ 51,098,796 Revenues General Property Taxes12,433,65113,181,48713,181,48714,526,735 Tax Increments86,79485,00085,00085,000 Special Assessments554,471611,400384,150636,900 Licenses and Permits562,525384,900553,875410,900 Intergovernmental1,641,8062,041,7302,113,4392,209,815 Charges for Services8,674,5617,867,7778,066,7628,142,252 Fines73,71975,25075,25075,250 Investment Income677,771300,050487,300285,200 User Charges544,264193,226981,248262,051 Meters14,41213,00013,00013,000 Miscellaneous1,251,2391,243,8501,665,5201,350,400 Total Revenues:26,515,21325,997,67027,607,03127,997,503 Other Financing Sources Operating Transfers In1,294,8451,341,3531,814,8861,589,418 Bond Proceeds10,000,00026,800,00015,770,0001,310,000 Proceeds from Sale of Property65,037-18,920- Total Other Financing Sources:11,614,14228,141,35319,062,5012,899,418 Total Revenues and Other Sources:38,129,35554,139,02346,669,53230,896,921 Total Available:81,170,931109,068,642101,599,15181,995,717 Expenditures Personal Services6,975,8417,334,8257,337,8257,774,188 Supplies and Materials1,292,3871,579,2121,563,7921,578,737 Purchased Services4,170,9344,507,9794,587,1794,647,282 Other Services and Charges7,380,8759,540,6999,245,3359,412,673 Capital Outlay2,351,86330,126,00023,151,87412,616,000 Debt Service2,774,5672,585,7812,799,4643,633,932 Total Operating Expenditures:24,946,46755,674,49648,685,46939,662,812 Other Uses Operating Transfers Out1,294,8451,341,3531,814,8861,589,418 Total Other Uses:1,294,8451,341,3531,814,8861,589,418 Total Expenditures and Other Uses:26,241,31257,015,84950,500,35541,252,230 Fund Balance/Net Assets, December 31$ 54,929,619$ 52,052,793$ 51,098,796$ 40,743,487 Change in Fund Balance $ 11,888,043$ (2,876,826)$ (3,830,823)$ (10,355,309) 27.62%-5.24%-6.97%-20.27% 51 CITY OF ANDOVER 2020 Budget Summary Revenues and Expenditures by Fund Type SpecialDebtCapitalInternal GeneralRevenueServiceProjectsEnterpriseServiceTotal Fund Balance/Net Assets, January 1$8,059,559$ 958,790$1,443,584$30,496,668$9,141,250$ 998,945$51,098,796 Revenues General Property Taxes9,392,03240,0003,089,0452,005,658--14,526,735 Tax Increments---85,000--85,000 Special Assessments---636,900--636,900 Licenses and Permits410,900-----410,900 Intergovernmental780,80637,500-1,391,509--2,209,815 Charges for Services736,210797,300--5,390,5911,218,1518,142,252 Fines75,250-----75,250 Investment Income75,0005,200-140,00061,0004,000285,200 User Charges---262,051--262,051 Meters----13,000-13,000 Miscellaneous133,850808,000-343,55065,000-1,350,400 Total Revenues:11,604,0481,688,0003,089,0454,864,6685,529,5911,222,15127,997,503 Other Financing Sources Operating Transfers In190,688-520,446818,54459,740-1,589,418 Bond Proceeds---1,310,000--1,310,000 Total Other Financing Sources:190,688-520,4462,128,54459,740-2,899,418 Total Revenues and Other Sources:11,794,7361,688,0003,609,4916,993,2125,589,3311,222,15130,896,921 Total Available:19,854,2952,646,7905,053,07537,489,88014,730,5812,221,09681,995,717 Expenditures Personal Services5,417,774660,633--1,160,684535,0977,774,188 Supplies and Materials740,517104,820--324,300409,1001,578,737 Purchased Services4,378,227269,055----4,647,282 Other Services and Charges1,499,378542,525-4,455,1122,449,336466,3229,412,673 Capital Outlay120,000130,000-12,366,000--12,616,000 Debt Service--2,847,432-786,500-3,633,932 Total Operating Expenditures:12,155,8961,707,0332,847,43216,821,1124,720,8201,410,51939,662,812 Other Uses Operating Transfers Out-305,70089,344234,886959,488-1,589,418 Total Other Uses:-305,70089,344234,886959,488-1,589,418 Total Expenditures and Other Uses:12,155,8962,012,7332,936,77617,055,9985,680,3081,410,51941,252,230 Fund Balance/Net Assets, December 31$7,698,399$ 634,057$2,116,299$20,433,882$9,050,273$ 810,577$40,743,487 Change in Fund Balance $ (361,160)$ (324,733)$ 672,715$(10,062,786)$ (90,977)$ (188,368)$(10,355,309) -4.48%-33.87%46.60%-33.00%-1.00%-18.86%-20.27% 52 CITY OF ANDOVER Revenue Comparison - General Fund ActualActualActualBudgetEstimateBudget 201620172018201820192020 REVENUES Property Taxes$ 8,217,768$ 8,332,634$ 8,634,130$ 9,023,970$ 9,023,970$ 9,392,032 License and Permits625,906546,378562,525384,900553,875410,900 Intergovernmental Revenues733,953793,932829,861787,918794,918780,806 Charges for Services912,220843,022888,944708,700829,490736,210 Fines and Forfeits88,60075,28773,71975,25075,25075,250 Interest Income68,38064,751107,56075,00075,00075,000 Miscellaneous Revenue194,812178,616176,662134,300150,705133,850 Transfers196,930196,930178,558188,008188,008190,688 TOTAL REVENUES$ 11,038,569$ 11,031,550$ 11,451,959$ 11,378,046$ 11,691,216$ 11,794,736 City of Andover City of Andover 2020 Revenue by Source -General Fund 2020 Revenue Comparison -General Fund Misc. Rev Property Taxes 1% Interest Income Transfers 1% 1% Licenses & PermitsFines & Forfeits 1% Charges for Svcs Intergov'l Rev 6% Intergov'l Rev Charges for Svcs 7% Fines & Forfeits Licenses & Permits Interest Income 3% Misc. Rev Transfers Property Taxes 80% $0.00$2.00$4.00$6.00$8.00$10.00 Millions Budget 2020 Estimate 2019 Actual 2018 Actual 2017 Actual 2016 53 CITY OF ANDOVER Expenditure Comparison - General Fund ActualActualActualBudgetEstimateBudget 201620172018201820192020 EXPENDITURES General Government$2,592,64925%$2,642,22324%$2,748,46425%$3,131,90027%$3,166,90027%$3,267,67627% Public Safety4,667,32644%4,778,33643%4,956,35245%5,169,38844%5,169,38844%5,289,48444% Public Works2,966,67428%2,854,54026%3,158,49028%3,298,77728%3,336,27728%3,502,80829% Other283,0773%764,8757%241,9402%95,4281%95,4281%95,9281% TOTAL EXPENDITURES$10,509,726$11,039,974$11,105,246$11,695,493$11,767,993$12,155,896 City of AndoverCity of Andover 2020 Expenditure Comparison -General Fund2020 Expenditures by Function -General Fund Other 1% General Gov't General Gov't 27% Public Works Public Safety 29% Public Works Other $0.00$1.00$2.00$3.00$4.00$5.00$6.00 Public Safety Millions 43% Budget 2020 Estimate 2019 Actual 2018 Actual 2017 Actual 2016 54 CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2020 ActualActualActualActualActualBudget*EstimateRequested*Change (*) 20142015201620172018201920192020$% GENERAL GOVERNMENT Mayor and Council $ 84,650$ 85,060$ 86,989$ 84,136$ 87,813$ 107,751$ 107,751$ 108,3155640.52% Administration169,218172,296187,876187,514198,945215,952215,952227,33411,3825.27% Newsletter20,97421,04222,73125,28717,77026,80026,80025,000(1,800)-6.72% Human Resources18,03815,90813,40415,52013,66628,77128,77134,1005,32918.52% Attorney177,427180,313184,990188,644188,031197,041197,041200,9413,9001.98% City Clerk128,861134,775148,338147,450149,769163,651163,651170,0006,3493.88% Elections41,50814,49764,43317,85250,62965,64065,64069,9944,3546.63% Finance230,639240,319252,563258,883272,851290,752290,752308,35617,6046.05% Assessing145,051146,315146,473147,915149,040154,000154,000159,0005,0003.25% Information Services146,984131,744151,387149,512171,637187,743187,743194,7256,9823.72% Planning & Zoning387,308406,045414,141398,780422,983456,887456,887490,29633,4097.31% Engineering460,872464,843511,074511,183527,688575,968575,968605,48129,5135.12% Facility Management470,397498,813408,250509,547497,642660,944695,944674,13413,1902.00% Total General Gov2,481,9272,511,9702,592,6492,642,2232,748,4643,131,9003,166,9003,267,676135,7764.34% PUBLIC SAFETY Police Protection2,818,1322,918,3082,936,4672,962,5513,053,5263,183,6103,183,6103,245,51861,9081.94% Fire Protection1,264,0181,165,2231,285,4171,353,2091,445,1671,471,1011,471,1011,517,67046,5693.17% Protective Inspection390,908391,951424,247443,712436,790479,543479,543490,41010,8672.27% Emergency Management21,83624,35217,49516,32018,06029,18429,18429,9367522.58% Animal Control4,0263,4983,7002,5442,8095,9505,9505,95000.00% Total Public Safety4,498,9204,503,3324,667,3264,778,3364,956,3525,169,3885,169,3885,289,484120,0962.32% PUBLIC WORKS Streets and Highways600,313629,724686,086597,963656,194696,225696,225738,07041,8456.01% Snow and Ice Removal637,154442,078468,173449,881599,029586,375586,375631,93745,5627.77% Street Signs187,935204,495167,282214,540206,890227,527227,527235,1247,5973.34% Traffic Signals34,90130,17027,91936,15133,85739,50039,50040,0005001.27% Street Lighting32,64630,66437,08927,73532,82940,40040,40040,40000.00% Street Lights - Billed203,148201,500200,509144,451142,937180,500180,500180,50000.00% Park & Recreation1,009,3731,151,3141,247,5011,207,3601,282,4141,345,5171,349,0171,428,59083,0736.17% Natural Resource Preservation--7,2556,5035,15814,10718,10714,2161090.77% Recycling113,902128,036124,860169,956199,182168,626198,626193,97125,34515.03% Total Public Works2,819,3722,817,9812,966,6742,854,5403,158,4903,298,7773,336,2773,502,808204,0316.19% OTHER81,185256,720283,077764,875241,94095,42895,42895,9285000.52% Total Other81,185256,720283,077764,875241,94095,42895,42895,9285000.52% GRAND TOTAL $ 9,881,404$ 10,090,003$ 10,509,726$ 11,039,974$ 11,105,246$ 11,695,493$ 11,767,993$ 12,155,896460,4033.94% 55 CITY OF ANDOVER General Fund Five Year Financial Projections AdoptedProjections 202020212022202320242025 REVENUES Property Taxes$ 9,392,032$ 9,673,793$ 9,964,007$10,262,927$10,570,815$10,887,939 License and Permits410,900423,227435,924449,002462,472476,346 Intergovernmental Revenues780,806804,230828,357853,208878,804905,168 Charges for Current Services736,210758,296781,045804,476828,610853,468 Fines and Forfeits75,25077,50879,83382,22884,69587,236 Interest Income75,00077,25079,56881,95584,41486,946 Miscellaneous Revenue133,850137,866142,002146,262150,650155,170 Transfers190,688196,409202,301208,370214,621221,060 TOTAL REVENUES11,794,73612,148,57912,513,03712,888,42813,275,08113,673,333 EXPENDITURES General Government3,267,6763,316,6913,366,4413,416,9383,468,1923,520,215 Public Safety5,289,4845,421,7215,557,2645,696,1965,838,6015,984,566 Public Works3,502,8083,555,3503,608,6803,662,8103,717,7523,773,518 Other95,92897,36798,828100,310101,815103,342 TOTAL EXPENDITURES12,155,89612,391,12912,631,21312,876,25413,126,36013,381,641 CHANGE IN FUND BALANCE$ (361,160)$ (242,550)$ (118,176)$ 12,174$ 148,721$ 291,692 Conclusion: The above analysis reflects a conservative view of current City revenues sources and the Department Heads estimated costs to carry on current levels of services into the projected years. Staff will monitor and make recommendations as the various years come up for funding. Currently, the General Fund has had reserves to handle any deficits, but efforts are always made to avoid using these reserves. This five year analysis demostrates that revenues will ultimately keep up with expenditures for the General Fund. This is done by utilizing the current revenue streams through modest rate increases, by diversifying the current revenues with additional fees or charges for services, and other items including market value growth as development continues to pick up, the final debt service payment for state aid bonds increasing the amount of state aid money available for construction and maintenance of roadways, capturing debt service expense margins for operations, and the continual frugile management of Department Heads budget implementation directives and expectations. Other issues that impact the City's budget are some rising employee benefit costs and the sheriff's contract. Health insurance premiums were originally projected to go up 45% in 2020; but with increasing deductibles and the creation of a health reimbursement account we were able to reduced that to 10%. The sheriff's contract, which represents $3.25m of the total budget in 2020, is reflecting a 1.94% increase. 56 CITY OF ANDOVER 2020 FTE Summary 20172018201920202017201820192020 ActualActualCurrentBudgetActualActualCurrentBudget General FundSpecial Revenue Funds General GovernmentEDA General0.050.05-- Administration1.131.131.151.10Community Center3.223.223.324.32 Human Resources0.030.030.030.08LRRWMO0.070.070.070.09 City Clerk1.891.891.891.89ROW Mgmt / Utility0.080.080.080.08 Elections0.150.150.150.153.423.423.474.49 Financial Adminstration1.941.941.942.01 Information Systems0.910.910.910.91Enterprise Funds Planning & Zoning4.034.034.034.05Water4.554.524.574.57 Engineering4.484.484.484.46Sewer2.823.083.333.33 Facility Management1.051.050.960.87Storm Sewers2.942.382.402.40 Total General Government15.6115.6115.5415.5210.319.9810.3010.30 Public SafetyInternal Service Funds Fire Protection3.213.213.213.35Central Equipment3.313.253.253.34 Protective Inspection4.034.034.033.93Risk Mgmt0.100.100.100.10 Emergency Management0.050.050.050.053.413.353.353.44 Total Public Safety7.297.297.297.33 Public Works Streets & Highways5.375.195.155.15Grand Total58.5058.5058.5059.50 Snow & Ice1.832.832.552.55 Street Signs1.571.521.511.51 Parks & Recreation8.658.308.398.38 Natural Resource Preservation0.010.010.030.02 Recycling1.031.000.920.81 Total Public Works18.4618.8518.5518.42 Total General Fund41.3641.7541.3841.27 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2017 & 2018 are based on actual hours charged to various departments. 57 CITY OF ANDOVER 2020 Capital Improvement Plan Projects By Department - Use of Funds Community CenterPark & Recreation - Operations Replacement - Sinks / Fixtures $ 15,000Replace/Repair Play Structures - Various Parks$ 100,000 Refacing Rink Boards30,000Replace/Repair Major Park Projects - Various Parks20,000 Replacement - Ice Arena Refrigeration & Dasher Board323,478Replacement - Water Tanker #161175,000 Replacement - Field House Floor184,634New - Large Capacity Mower110,000 553,112405,000 Emergency ManagementPark & Recreation - Projects Emergency Operations Center Improvement10,000Annual Miscellaneous Projects15,000 New - Emergency Sirens55,000Andover Station North East Ball Field Lighting180,000 65,000195,000 EngineeringSanitary Sewer New Development Projects175,000Lift Station Improvements90,000 Pedestrian Trail Maintenance63,000 Pedestrian Trail Reconstruction70,000Storm Sewer Pedestrian Curb Ramp Replacements19,000Storm Sewer Improvements62,000 Replacement - 3/4 Ton Truck #1230,000 New Pedestrian Trail and Sidewalk Segments405,000Streets / Highways Railroad Underpass Trail12,000Annual Street Seal Coat Project200,000 774,000Annual Street Crack Seal Project170,000 Annual Pavement Markings60,000 Facility ManagementAnnual Curb Replacement56,000 Annual Parking Lot Maintenance / Replacement250,000Municipal State Aid Routes / New & Reconstruct580,000 Surface Seal all Brick Structures85,000Annual Street Reconstruction1,226,000 Replacement - Furnace/Condenser PW6,000Gravel Road Improvement21,000 Replacement - Furnace/Condenser PW6,000Replacement - Front End Loader #124275,000 Fencing Around Public Yard110,000Replacement - One Ton Truck w/ Plow #13380,000 457,000Street Overlays920,000 New - Slide In Hotbox19,000 FirePedestrian Crossing10,000 Replacement - Turnout Gear23,0003,617,000 Replacement - Engine 21 #4884510,000 Replacement - (2) SCBA Compressors St 2 & 365,000Water Replacement - 800 MHz Radios46,000Recondition & Paint Water Tower #2150,000 644,000 Grand Total$ 7,034,112 Information Technology Windows Server 2019 DataCenter Licenses12,000 Aruba Switch Upgrade10,000 $ 22,000 58 CITY OF ANDOVER 2020 Capital Improvement Plan Sources of Funds Assessments$ 654,500 Capital Equipment Reserve337,634 Community Center Operations157,000 Construction Seal Coating Fund10,000 Donations90,000 Equipment Bond1,264,000 Facility Maintenance Reserve681,478 General Fund155,000 Grant193,550 Municipal State Aid Fund555,000 Park Improvement Fund204,000 Road & Bridge Fund2,195,500 Sewer Trunk Fund125,000 Storm Sewer Fund62,000 Trail Fund124,450 Water Fund25,000 Water Trunk Fund200,000 Total $ 7,034,112 59 This page left blank intentionally. 60 CITY OF ANDOVER, MINNESOTA 2020ANNUAL BUDGET GENERAL FUND DEFINITION: The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and park and recreation. Revenue is recorded by source: i.e., general property taxes, licenses and permits, fines, charges for services, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. 61 This page left blank intentionally. 62 City of Andover 2020 Budget - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance ActualAdoptedEstimateAdopted Description2018201920192020 Fund Balance, January 1$ 7,789,616$ 8,136,336$ 8,136,336$ 8,059,559 Revenues General Property Taxes 8,634,1309,023,9709,023,9709,392,032 Licenses and Permits 562,525384,900553,875410,900 Intergovernmental 829,861787,918794,918780,806 Charges for Services 888,947708,700829,490736,210 Fines 73,71975,25075,25075,250 Investment Income 107,56175,00075,00075,000 Miscellaneous Revenue 176,663134,300150,705133,850 Total Revenues:11,273,40611,190,03811,503,20811,604,048 Other Sources Transfers In 178,558188,008188,008190,688 Total Revenues and Other Sources:11,451,96411,378,04611,691,21611,794,736 Total Available:19,241,58019,514,38219,827,55219,854,295 Expenditures Personal Services 4,923,5825,145,8735,145,8735,417,774 Supplies and Materials 613,496727,082733,582740,517 Purchased Services 3,934,3984,272,0294,338,0294,378,227 Other Services and Charges 1,274,7301,430,5091,430,5091,499,378 Capital Outlay 129,038120,000120,000120,000 Total Expenditures:10,875,24411,695,49311,767,99312,155,896 Other Uses Transfers Out 230,000--- Total Expenditures and Other Uses:11,105,24411,695,49311,767,99312,155,896 Fund Balance, December 31$ 8,136,336$ 7,818,889$ 8,059,559$ 7,698,399 Change in Fund Balance$ 346,720$ (317,447)$ (76,777)$ (361,160) 4%-4%-1%-4% 63 Fund: 0101 - General Department:Mayor & Council Cost Center: 41100 Director/Manager:City Council Activity Description ActualCurrent The City Council exercises the legislative power of the City by which all matters of policy Staffing Levels 20182019 are determined, as provided by the form of government. Council exercises budgetaryOne Mayor and Four Council Members control through the adoption of the annual budget, and approval of claims against the City treasury. The Council also approves capital improvement projects through the adoption of a five year capital improvement plan identifying the City's infrastructure needs. Council ActualCurrent appoints various citizen committees to render advice on legislative and city issues.Service Expenditures 20182019 Council members respond to constituent concerns and questions by working with CityPersonal Services$ 43,233$ 59,878$ administration to address community service issues.Supplies & Materials30,37935,094 Other Services / Charges2,6552,779 Purchased Services11,54610,000 Process Used TOTAL$ 87,813 $ 107,751$ As provided by statutory authority, Council performs a legislative, regulatory and quasi- judicial function. The Council meets regularly to consider ordinances, resolutions, and other such actions as may be required by law and circumstance. Various concerns that are Service Expenditures By Category brought before Council for consideration are reviewed and forwarded to staff for an appropriate response. The City Administrator and staff attend meetings to provide information and other forms of support for Council deliberations. Personal Services Supplies & Materials Service Expenditure Highlights Other Services / Charges Council approved an increase in compensation for Current 2019. Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Council Meetings242424 ActualCurrent Special Workshops131410 Expenditures Per Capita 20182019 Agenda Items - Special Workshops848060Population - Estimates32,72832,978 EDA Meetings11912Monthly$ 0.22$ 0.27$ Agenda Items - EDA735675Annual$ 2.68$ 3.27$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Administration Cost Center: 41200 Director/Manager:City Administrator Activity Description ActualCurrentBudgeted The City Administrator oversees all city operations and activities as directed Staffing Levels 201820192020 by the City Council. Primary responsibilities include directing the administrationFTE Equivalents1.131.151.10 of City affairs; enforcing laws, City ordinances and resolutions as adopted by the governing body. Ensures that services are delivered in a cost-effective, efficient and high quality manner. Oversees the preparation of Annual City ActualCurrentBudgeted Budget and Capital Improvement Plan for Council adoption; Responsible for Service Expenditures 201820192020 keeping Council fully advised as to the financial condition and needs of thePersonal Services$ 176,847$ 188,784$ 199,716 organization.Supplies & Materials5,4919,95010,700 Other Services / Charges16,57217,21816,918 Process Used Purchased Services35- Policy goals and direction are translated in to management objectives to be TOTAL$ 198,945$ 215,952$ 227,334 administered and delegated to appropriate City departments for implementation and achievement. Through reporting relationships established by City ordinance, department directors are responsible to the administrator for properly managing Service Expenditures By Category and overseeing the operations of their department. A management team consisting of key department directors works with the administrator to resolve issues, review projects and address changing community service dynamics. Personal Services Supplies & Materials Service Expenditure Highlights The major increase for Budget 2020 is in Personal Services due to a COLA and an increase Other Services / Charges in the cost of health insurance. Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Regular Council Agenda Items334354340 ActualCurrentBudgeted Council Workshops Attended131414 Expenditures Per Capita 201820192020 Council Meetings Attended242424Population - Estimates32,72832,97833,228 Staff Meetings Held525252Monthly$ 0.51$ 0.55$ Annual$ 6.08$ 6.55$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Newsletter Cost Center: 41210 Director/Manager:Newsletter Coordinator Activity Description ActualCurrentBudgeted The City publishes a newsletter containing articles regarding important municipal service Staffing Levels 201820192020 news. Funding for publication is provided through general tax levies and is distributedFTE EquivalentsN/AN/AN/A to every household and business located within Andover's corporate boundaries. ActualCurrentBudgeted Process UsedService Expenditures 201820192020 The City has an active newsletter committee comprised of Council members, and staffPersonal Services$ -$ -$ who meet to determine newsletter articles, format and coordinate the development ofSupplies & Materials9,87014,80013,000 the newsletter publication. Each issue is reviewed by City departments to ensure Other Services / Charges-- accuracy and appropriate content. Starting in late 2017, the newsletter is now assembled Purchased Services7,90012,00012,000 in-house and contracted out for printing and distribution to all households and businesses.TOTAL$ 17,770$ 26,800$ 25,000 Articles selected for publication are intended to provide the public with timely, newsworthy and customer service oriented information. Each Council member and the City administrator Service Expenditures By Category prepare news articles focusing on significant issues affecting City government. Service Expenditure Highlights Personal Services Newsletter setup, printing and postage costs are increasing slightly. Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Number of Meetings Held666 Newsletters Published666 ActualCurrentBudgeted Public Circulation11,00011,00011,000 Expenditures Per Capita 201820192020 Staff Preparation Hours90100100Population - Estimates32,72832,97833,228 Monthly$ 0.05$ 0.07$ Annual$ 0.54$ 0.81$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Human Resources Cost Center: 41230 Director/Manager:Human Resources Manager Activity Description ActualCurrent Personnel activities support the City's human resource needs in the areas of recruitment,Staffing Levels 20182019 selection, development, training and assessment of organizational needs. EmployeeFTE Equivalents0.030.03 benefits, compensation administration, enforcement of personnel policies, and compliance with state and federal employment laws are essential functions of the activity. Labor relations activities such as negotiations, contract administration, grievance processing ActualCurrent and costing of benefits provide the City with the ability to interpret and manage labor Service Expenditures 20182019 components of providing City services. Conducting and facilitating employee training in Personal Services$ 4,867$ 4,967$ the areas of customer service, safety training and programs designed to enhance theSupplies & Materials2,8534,304 productivity and performance of the organization. New ACA requirements will alsoOther Services / Charges4,1194,250 increase benefits administration.Purchased Services1,82715,250 TOTAL$ 13,666 $ 28,771 $ Process Used Staff needs are continually reviewed by City departments, and annually appropriated for in the budget process through review and justification factors. Human resources will Service Expenditures By Category facilitate this through advertisements, testing and interviews, and processing of new employees. Personnel functions include training, interviewing, record processing and management, benefits, job description development and analysis, pay equity compliance, Personal Services labor negotiations, drug testing, and ensuring compliance with state and federal laws. Supplies & Materials Service Expenditure Highlights Other Services / Charges The Human Resources Manager is allocated out to various departments based on FTE's. Purchased Services Budgeted 2020 includes funding for any market rate adjustments that are approved by the City Council. As more employees become eligible for retirement, an increase in recruitment is expected. ActualCurrentBudgeted Performance Measures 201820192020 Workers Comp Mod Factor0.740.820.82 ActualCurrent Premium change in health insurance0.00%11.79%20.00%Expenditures Per Capita 20182019 Hours spent on labor relations101010Population - Estimates32,72832,978 Hours spent on benefit administration100100100Monthly$ 0.03$ 0.07$ Employees hired (Seasonal/FT/PT)243950Annual$ 0.42$ 0.87$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Attorney Cost Center: 41240 Director/Manager:City Administrator Activity Description ActualCurrentBudgeted The City Attorney provides City Council and staff with research and support on Staffing Levels 201820192020 issues of a legal matter. The City Attorney also serves as the chief prosecutingFTE EquivalentsN/AN/AN/A attorney for the City on offenses committed within the City of Andover. The City Attorney attends Council and staff meetings and serves in an advisoral capacity to all City departments on matters coming before the City Council.ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ -$ -$ - Supplies & Materials--- Other Services / Charges--- Purchased Services188,031197,041200,941 Process Used TOTAL$ 188,031$ 197,041$ 200,941 Attorney services are provided to the City through an annual contract with the Hawkins & Baumgartner, P.A. legal firm. Service Expenditures By Category Personal Services Service Expenditure Highlights Budgeted 2020 includes a 2% increase in the contract. Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Expenditures Per Capita 201820192020 Population - Estimates32,72832,97833,228 Monthly$ 0.48$ 0.50$ 0.50 Annual$ 5.75$ 5.97$ 6.05 A D O P T E D 2 0 2 0 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 68 Fund: 0101 - General Department:City Clerk Cost Center: 41300 Director/Manager:City Clerk Activity Description ActualCurrent The City Clerk's office prepares the agenda and materials for council meetings; is Staffing Levels 20182019 responsible for special assessments, elections, homestead filing; licensing of alcoholFTE Equivalents1.891.89 and tobacco, garbage haulers, dogs, peddlers, tree trimmers; signs all official papers; is the keeper of the official city records including resolutions, minutes, ordinances, etc. ActualCurrent Assists residents by telephone, e-mail and in person.Service Expenditures 20182019 Personal Services$ 122,947$ 135,464 Supplies & Materials8612,110 Other Services / Charges25,82725,877 Purchased Services134200 TOTAL$ 149,769$ 163,651 Process Used Activities are conducted pursuant to city ordinances, policies and state law. Service Expenditures By Category Service Expenditure Highlights Personal Services In Budgeted 2020, the increase is due to a COLA. Supplies & Materials Other Services / Charges ActualCurrentBudgeted Purchased Services Performance Measures 201820192020 Council packets (hardcopy)336456400 Council packets (emailed)1,1341,4251,200 Licenses Issued185242250 ActualCurrent Assessment Searches131213215 Expenditures Per Capita 20182019 False Alarm Letters59198190Population - Estimates32,72832,978 Monthly$ 0.38$ 0.41 Annual$ 4.58$ 4.96 A D O P T E D 2 0 2 0 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: 0101 - General Department:Elections Cost Center: 41310 Director/Manager:City Clerk Activity Description ActualCurrent Conduct State and General Elections in accordance with State Law.Staffing Levels 20182019 FTE Equivalents0.150.15 Process Used ActualCurrent Notify voters of their precincts; administer filings for local offices; proof ballots;Service Expenditures 20182019 post and publish notices; hire sufficient number of judges; arrange for judges'Personal Services$ 41,519$ 55,640 training; notify polling places of elections; conduct public accruary tests toSupplies & Materials8712,000 ensure machine accuracy.Other Services / Charges-- Purchased Services8,2398,000 TOTAL$ 50,629 $ 65,640 Service Expenditures By Category Service Expenditure Highlights Current 2018 was an election year. Personal Services Supplies & Materials Other Services / Charges ActualCurrentBudgeted Purchased Services Performance Measures 201820192020 Total number of voters16,051Non election16,100 Number of Precincts10year10 Registered voters20,43320,500 ActualCurrent Expenditures Per Capita 20182019 Population - Estimates32,72832,978 Monthly$ 0.13$ 0.17 Annual$ 1.55$ 1.99 A D O P T E D 2 0 2 0 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: 0101 - General Department:Financial Administration Cost Center: 41400 Director/Manager:Finance Director Activity Description ActualCurrentBudgeted This department is responsible for administration of the City's financial affairs. This Staffing Levels 201820192020 includes maintaining accounting records for all operations, custody and investmentFTE Equivalents1.941.942.01 of funds , supervision of revenue collection and disbursements of city monies, administration of debt, payroll function, audit and budget preparation. ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ 219,043$ 230,506$ 245,960 Process Used Supplies & Materials5,3568,1008,400 The financial affairs are conducted in compliance with federal law, state law, Other Services / Charges21,91023,19624,396 generally accepted accounting principles, and various city policies.Purchased Services26,54228,95029,600 TOTAL$ 272,851$ 290,752$ 308,356 Service Expenditures By Category Service Expenditure Highlights No major changes for Budgeted 2020 except for Personal Services - a 3.00% cost of living adjustment and steps for newer employees. Personal Services ActualCurrentBudgeted Supplies & Materials Performance Measures 201820192020 Other Services / Charges Vendor checks issued3,6542,7483,000 Purchased Services Payroll checks issued255237240 Payroll checks - direct deposit2,4892,8212,900 Number of delinquent accounts614631650 Utility accounts - Storm Water10,66310,77410,850 Utility accounts - Water6,7216,8016,850 ActualCurrentBudgeted Utility accounts - Sewer7,5917,6687,720 Expenditures Per Capita 201820192020 Utility accounts - Street Lights7,3407,3987,520Population - Estimates32,72832,97833,228 Monthly$ 0.69$ 0.73$ Annual$ 8.34$ 8.82$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Assessing Cost Center: 41410 Director/Manager:Finance Director Activity Description ActualCurrentBudgeted This department is responsible for assessment for all real and personal property for Staffing Levels 20182019 valuation purposes. The City contracts with Anoka County for this service.FTE EquivalentsN/AN/A ActualCurrentBudgeted Service Expenditures 20182019 Personal Services$ -$ -$ Process Used Supplies & Materials-- The assessed valuation is determined by inspections of real and personal propertyOther Services / Charges-- within the city. The Assessor follows state statutes and market trends to determinePurchased Services149,040154,000 taxable market values.TOTAL$ 149,040$ 154,000$ Service Expenditures By Category Personal Services Service Expenditure Highlights Budgeted 2020 includes a slight increase in the contract with Anoka County for assessing Supplies & Materials services. Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Residential Parcels Assessed10,50610,56710,600 ActualCurrentBudgeted Commercial Parcels Assessed133156160 Expenditures Per Capita 20182019 Apartments Assessed222222Population - Estimates32,72832,978 Unimproved Parcels Assessed595601600Monthly$ 0.38$ 0.39$ Annual$ 4.55$ 4.67$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Information Systems Cost Center: 41420 Director/Manager:City Administrator Activity Description ActualCurrentBudgeted This department is responsible for the continued operations of the city's information Staffing Levels 201820192020 technology equipment. The department also provides assistance to computer usersFTE Equivalents0.910.910.91 to provide timely, accurate and meaningful data for program monitoring and decision-making. ActualCurrentBudgeted Process UsedService Expenditures 201820192020 - City website updated and monitored dailyPersonal Services$ 110,609$ 114,773$ 119,005 - Train employees as needed on new and existing softwareSupplies & Materials28,83441,72041,770 - Network data backup monitored dailyOther Services / Charges28,48228,75031,450 - Maintain phone systems including voice mail and assist in future upgradesPurchased Services3,7122,5002,500 - Maintain all City servers and remote users TOTAL$ 171,637$ 187,743$ 194,725 - Research new technology for current and future growth - Purchase new equipment as needed Service Expenditures By Category - Maintain SPAM firewall for unauthorized emails - Maintain network security for prevention of unauthorized access Service Expenditure Highlights Personal Services Minimal changes planned for 2020, biggest increase is due to health insurance and COLA. Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Number of PC's / Servers757475 Number of Printers242425 Number of Phones Maintained877480 ActualCurrentBudgeted Expenditures Per Capita 201820192020 Population - Estimates32,72832,97833,228 Monthly$ 0.44$ 0.47$ Annual$ 5.24$ 5.69$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Planning and Zoning Cost Center: 41500 Director/Manager:Community Development Director Activity Description ActualCurrentBudgeted Review residential and commercial developments for conformance with City's Staffing Levels 201820192020 Comprehensive Plan, Ordinances, and Development Policies. Prepare ordinancesFTE Equivalents4.034.034.05 for Council adoption with the implementation and enforcement of ordinances as directed. Review planning and zoning requests and make recommendations in accordance with adopted regulations ActualCurrentBudgeted Service Expenditures 201820192020 Process Used Personal Services$ 402,680$ 432,330$ 465,440 The Planning Department processes development proposals, reviews plats,Supplies & Materials6,6469,2699,369 reviews commercial site plans and responds to citizens' requests for rezonings,Other Services / Charges6,8867,5887,787 special use permits, comprehensive plan amendments and variances. ThePurchased Services6,7717,7007,700 Zoning Ordinance is the primary source of information. However, the Andover TOTAL$ 422,983$ 456,887$ 490,296 Review Committee and the City Attorney are also utilized before applications are processed before the Planning and Zoning Commission and City Council. Service Expenditures By Category Service Expenditure Highlights Budgeted 2020 Personal Services change is largely due to a change in benefits and COLA. Personal Services ActualCurrentBudgeted Performance Measures 201820192020 Supplies & Materials Subdivisions Processed753 Other Services / Charges Commercial Site Plans Processed752 Conditional Use Permits661 Purchased Services Code Amendments221 Comp Plan Amendments111 Rezonings232 Variances431 ActualCurrentBudgeted Lot Splits821 Expenditures Per Capita 201820192020 P&Z Agendas131916Population - Estimates32,72832,97833,228 Vac of Easements463Monthly$ 1.08$ 1.15$ IUP - Interim Use Permit143Annual$ 12.92$ 13.85$ 14.76 Abatements1065 Rental Licenses252238240 A D O P T E D 2 0 2 0 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: 0101 - General Department:Engineering Cost Center: 41600 Director/Manager:City Engineer Activity Description ActualCurrentBudgeted The Engineering Division provides review, design and construction related support for Staffing Levels 20182019 the development and maintenance of the City Infrastructure. The Department maintainsFTE Equivalents4.484.48 and distributes information relative to "as-constructed" drawings for the City Infrastructure. Engineering support is provided for other City activities as needed. The department also provides project management and inspection related services for the ActualCurrentBudgeted City.Service Expenditures 20182019 Personal Services$ 493,459$ 529,095$ Supplies & Materials11,64719,200 Process Used Other Services / Charges22,33225,373 Engineering support is provided for the development and long-term maintenance of thePurchased Services2502,300 City Infrastructure (i.e. water, sanitary sewer, storm sewer, water main, streets, trails,TOTAL$ 527,688$ 575,968$ parks, facilities, etc.). Engineering reviews plans for all commercial and residential development to ensure compliance with City standards. Service Expenditures By Category Service Expenditure Highlights Budgeted 2020 Personal Services change is largely due to a COLA and an increase in health Personal Services insurance costs. Supplies & Materials Other Services / Charges ActualCurrentBudgeted Purchased Services Performance Measures 201820192020 1. Number of Projects Constructed866 2. Number of Projects Reviewed: Prelimary Plats552 Commercial Site Plans654 ActualCurrentBudgeted 3. Number of Utility permits issued697270 Expenditures Per Capita 20182019 Population - Estimates32,72832,978 Monthly$ 1.34$ 1.46$ Annual$ 16.12$ 17.47$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Facilities Management Cost Center: 41900 Director/Manager:Finance Director Activity Description ActualCurrentBudgeted Responsible for the custodial, mechanical, structural and ground maintenance Staffing Levels 201820192020 of the City Hall and Public Works campus, park buildings and fire stations.FTE Equivalents1.050.960.87 ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ 109,407$ 108,163$ 104,213 Supplies & Materials18,65239,55039,550 Other Services / Charges217,942309,931333,031 Process Used Purchased Services151,641238,300197,340 The facilities are to be maintained in a healthy, safe and sanitary condition and TOTAL$ 497,642$ 695,944$ 674,134 to work toward facility designs that will maximize operational efficiency while projecting a positive public image and work environment. Service Expenditures By Category Service Expenditure Highlights Personal Services Current Year 2019 included $35,000 budget carryforward for updating lighting in two buildings and the sealing of a fire station floor. Budgeted 2020 includes the Supplies & Materials addition of a cold storage building for indoor storage that will increase utility costs. Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020ActualCurrentBudgeted Buildings182020 Expenditures Per Capita 201820192020 Parking Lots141516Population - Estimates32,72832,97833,228 Monthly$ 1.27$ 1.76$ Annual$ 15.21$ 21.10$ 20.29 A D O P T E D 2 0 2 0 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: 0101 - General Department:Police Protection Cost Center: 42100 Director/Manager:City Administrator Activity Description ActualCurrentBudgeted Enforce state laws and city ordinances as directed to provide the public with law Staffing Levels 201820192020 enforcement services in the area of patrol, investigation, school liaison, crime FTE EquivalentsN/AN/AN/A prevention and traffic control. The Anoka County Sheriff's office is responsible for recognizing public safety issues and appropriately reacting to these issues through appropriate law enforcement channels and means.ActualCurrentBudgeted Service Expenditures 201820192020 Process Used Personal Services$ -$ -$ - The City of Andover contracts with the Anoka County Sheriff's Office to provide aSupplies & Materials--- wide range of public safety and law enforcement services. The Sheriff's Office Other Services / Charges--- serves as a member of the City's management team, and works with the City toPurchased Services3,053,5263,183,6103,245,518 address a wide range of public safety concerns and issues. Responses to citizen TOTAL$ 3,053,526$ 3,183,610$ 3,245,518 service requests are handled by deputies in accordance with established procedures and public safety circumstances. The Sheriff's Office also provides school liaison officers in community schools, prepares news articles and performs Service Expenditures By Category a variety of community safety programming. Service Expenditure Highlights Personal Services Budgeted 2020 includes a 1.94 percent contract increase with no change in service. Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Number of Part I & II Offenses9621,2391,100 Number of Calls for Services14,72418,16416,000 Number of Traffic Citations1,5851,2461,200 ActualCurrentBudgeted Number of Patrol Hours29,20029,20029,200 Expenditures Per Capita 201820192020 Staff Meetings Attended505050Population - Estimates32,72832,97833,228 Number of School Liaison Hours4,1604,1604,160Monthly$ 7.78$ 8.04$ 8.14 Annual$ 93.30$ 96.54$ 97.67 A D O P T E D 2 0 2 0 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 77 Fund: 0101 - General Department:Fire Protection Cost Center: 42200 Director/Manager:Fire Chief Activity Description ActualCurrentBudgeted The fire department responds to all fire and emergency medical incidents in the City of Staffing Levels 201820192020 Andover. Paid on-call firefighters are alerted to an incident via a pager dispatched throughFTE Equivalents3.213.213.35 the Anoka County Central Communications System. The fire department is responsible for performing new building plan reviews and existing building inspections to ensure compliance with State and Federal Fire Codes and Standards. The fire department also ActualCurrentBudgeted provides public education and fire safety information to residents. In addition, the Fire Service Expenditures 201820192020 Chief is the City Emergency Manager, overseeing all City disaster and contingency plans.Personal Services$ 1,047,875$ 1,071,127$ 1,120,517 Supplies & Materials133,563129,150134,100 Process Used Other Services / Charges229,320242,074229,803 Paid on-call firefighters are professionally trained, each averaging over 145 hours a yearPurchased Services34,40928,75033,250 to help maintain proficiency in their skills used for responding to fire and medical calls.TOTAL$ 1,445,167$ 1,471,101$ 1,517,670 The Fire Chief, Asst. Chief, and Fire Marshal are well versed in all appropriate State Laws, Fire Codes, and National Fire Standards used for plan reviews, inspections, and fire Service Expenditures By Category investigations. Public education demands have rapidly increased over the past five years. Service Expenditure Highlights Budgeted 2020 increased in Personal Services due to a COLA, increase in the cost of Personal Services health insurance and any step increases for newer employees takes place. Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Fire Responses365472500 Emergency Medical Responses740790800 ActualCurrentBudgeted Fire Inspections663060 Expenditures Per Capita 201820192020 Fire Investigations132015Population - Estimates32,72832,97833,228 Public Fire Education (hours)622710700Monthly$ 3.68$ 3.72$ Customer Contacts13,63813,26813,000Annual$ 44.16$ 44.61$ 45.67 Total Firefighter Training Hours3,4553,2003,200 Average Response Time8.0 min8.0 min8.0 min A D O P T E D 2 0 2 0 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: 0101 - General Department:Protective Inspection Cost Center: 42300 Director/Manager:Building Official Activity Description ActualCurrentBudgeted Review and process building permit applications, perform on-site inspections of Staffing Levels 201820192020 residential and commercial construction and ensure that all construction activityFTE Equivalents4.034.033.93 is in compliance with state and city building and fire codes. ActualCurrentBudgeted Service Expenditures 201820192020 Process Used Personal Services$ 376,240$ 387,574$ 397,789 Building permit applications are reviewed, plan checks completed, and constructionSupplies & Materials7,25817,05017,050 fees collected. Upon issuance of a permit, the person doing the work calls in forOther Services / Charges24,99627,91928,571 inspections at various stages of construction. When construction is completed in Purchased Services28,29647,00047,000 accordance with approved standards, a Certificate of Occupancy is issued.TOTAL$ 436,790$ 479,543$ 490,410 Service Expenditures By Category Service Expenditure Highlights The major increase for Budgeted 2020 is in Personal Services where a COLA, increase in the cost of health insurance and any step increases for newer employees takes Personal Services place. Supplies & Materials Other Services / Charges ActualCurrentBudgeted Purchased Services Performance Measures 201820192020 Residential New Construction5811690 Other Permits7881,167900 Commercial, Industrial, etc ActualCurrentBudgeted New Construction212 Expenditures Per Capita 201820192020 Other Permits302830Population - Estimates32,72832,97833,228 Trades & Misc Permits2,3962,7582,500Monthly$ 1.11$ 1.21$ 1.23 Permits Initiated Online42%48%50%Annual$ 13.35$ 14.54$ 14.76 A D O P T E D 2 0 2 0 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 79 Fund: 0101 - General Department:Emergency Management Cost Center: 42400 Director/Manager:Building Official Activity Description ActualCurrent Maintain City's emergency warning system. Repair, replace and maintain twelve (12)Staffing Levels 20182019 warning sirens throughout the city to ensure proper activation during storm, civil andFTE Equivalents0.050.05 emergency conditions. All sirens are visually checked every April to confirm sirens are operating properly. ActualCurrent Service Expenditures 20182019 Personal Services$ 6,802$ 7,100$ Process Used Supplies & Materials-3,400 If a siren is found to be dysfunctional, a service call is placed, a repair-person comesOther Services / Charges8,5158,684 out, necessary repairs are completed. The City replaced all sirens in 2002 and 2003Purchased Services2,74310,000 into battery back-up units. Siren warning tests are performed monthly to verify TOTAL$ 18,060 $ 29,184 $ activation and educate citizens regarding the City's Emergency Warning System. Service Expenditures By Category Service Expenditure Highlights In Budgeted 2020, a minimal increased is planned as four sirens were replaced in 2018 and one additional siren will be constructed in 2019 and one in 2020. The efficiencies Personal Services of the replacement sirens should cover the extra expenditures of the added sirens. Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Siren tests throughout the severe weather season444 State-wide siren tests141214 ActualCurrent Number of sirens121214 Expenditures Per Capita 20182019 Population - Estimates32,72832,978 Monthly$ 0.05$ 0.07$ Annual$ 0.55$ 0.88$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Animal Control Cost Center: 42500 Director/Manager:City Clerk Activity Description ActualCurrentBudgeted The enforcement of City Code Title 5 relating to dogs and cats.Staffing Levels 201820192020 FTE EquivalentsN/AN/AN/A Process Used ActualCurrentBudgeted Letters are sent to dog and cat owners who allow their animals to run at large Service Expenditures 201820192020 warning them that they are in violation of the City's ordinance. If the behaviorPersonal Services$ -$ -$ continues, a ticket is issued by the Sheriff's office to the owner citing them forSupplies & Materials391150 a misdemeanor.Other Services / Charges150200 Purchased Services2,2685,6005,600 The City contracts with an independent contractor to provide animal control TOTAL$ 2,809$ 5,950$ 5,950 services. The City, in conjunction with a veterinarian, holds a rabies vaccination clinic every spring. City staff also issue licenses for dogs in the city. Service Expenditures By Category Service Expenditure Highlights No changes planned for Budgeted 2020. Personal Services Supplies & Materials Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Number of dogs licensed234256260 Number of animals confined4698100 ActualCurrentBudgeted Expenditures Per Capita 201820192020 Population - Estimate32,72832,97833,228 Monthly$ 0.01$ 0.02$ Annual$ 0.09$ 0.18$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Streets & Highways Cost Center: 43100 Director/Manager:Street Supervisor Activity Description ActualCurrentBudgeted The Streets and Highways Department maintains all City streets to minimize Staffing Levels 201820192020 deterioration. Maintenance includes seal coating, crack sealing, pothole patching,FTE Equivalents5.195.155.15 sweeping, gravel road maintenance and wash and seal bridges. Along with road maintenance, this department is responsible for mowing ditches and trimming boulevard trees.ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ 450,548$ 467,836$ 501,538 Process Used Supplies & Materials74,97473,30079,350 Staff is assigned detailed work, followed by inspections. Equipment and personnelOther Services / Charges93,21695,98995,382 are managed to accomplish maintenance activities.Purchased Services37,45659,10061,800 TOTAL$ 656,194$ 696,225$ 738,070 Service Expenditure Highlights Service Expenditures By Category Budgeted 2020 in Personal Services includes steps, COLA and benefit changes. Personal Services Supplies & Materials ActualCurrentBudgeted Performance Measures 201820192020 Other Services / Charges Asphalt Streets Maintained (miles)193.5194.9196.5 Gravel Roads Maintained (miles)6.56.56.5 Purchased Services Cul-de-sacs & Deadends Maintained353357365 Road Markings/Striping (intersections)181184187 Street Sweeping (miles)390400410 Gravel Usage (tons)2,361601928 ActualCurrentBudgeted Asphalt Usage (tons)1,261551615 Expenditures Per Capita 201820192020 Spray Patcher - Rock (tons)200125300Population - Estimates32,72832,97833,228 Spray Patcher - Oil (gallons)1,2507801,875Monthly$ 1.67$ 1.76$ Annual$ 20.05$ 21.11$ 22.21 A D O P T E D 2 0 2 0 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: 0101 - General Department:Snow & Ice Cost Center: 43200 Director/Manager:Street Supervisor Activity Description ActualCurrentBudgeted All Public Works Departments provide snow removal services for 198 miles of Staffing Levels 201820192020 city streets and 330 cul-de-sacs. The goal is to provide convenient, reasonablyFTE Equivalents2.832.552.55 safe travel and to prevent deterioration of the streets due to winter conditions. ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ 285,879$ 278,644$ 296,584 Supplies & Materials159,219153,800155,600 Process Used Other Services / Charges152,931152,931178,753 Snowplows, equipped with underbody plows, and salt brine sanders are usedPurchased Services1,0001,0001,000 to clear city streets. The streets are cleared on a systematic basis as soon as TOTAL$ 599,029$ 586,375$ 631,937 practical after a snowstorm per city policy. Service Expenditures By Category Service Expenditure Highlights Personal Services Personal Services are allocated based on time spent removing snow and ice from Supplies & Materials roads, trails, and/or parking lots. The increase in Budgeted 2020 is due to Personal Services (health insurance and COLA) and Other Services / Charges (central Other Services / Charges equipment allocation). Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Miles of streets plowed200201.5203 ActualCurrentBudgeted Cul-de-sacs353357365 Expenditures Per Capita 201820192020 Sand/Salt Usage (tons)2,1012,0102,100Population - Estimates32,72832,97833,228 Brine Usage (gal)7,0008,50010,000Monthly$ 1.53$ 1.48$ Snow events254740Annual$ 18.30$ 17.78$ 19.02 A D O P T E D 2 0 2 0 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: 0101 - General Department:Street Signs Cost Center: 43300 Director/Manager:Street Supervisor Activity Description ActualCurrentBudgeted Installs new signage and replaces/repairs existing signs. All signage for streets Staffing Levels 201820192020 and highways are in compliance with Federal, State, County and City guidelines.FTE Equivalents1.521.511.51 The ultimate goal is the safety of pedestrians and to provide traffic directional information for safe travel through the city. Signage for city parks, trails, special events, ordinances, seasonal road restrictions, traffic counts and barricades ActualCurrentBudgeted are also provided by the Sign Department. Sign data such as location, type and Service Expenditures 201820192020 quality of signs is being collected and data entry completed on a sign databasePersonal Services$ 160,872$ 163,349$ 169,367 for sign inventory.Supplies & Materials31,61647,86047,860 Other Services / Charges14,40214,81816,397 Purchased Services-1,5001,500 Process Used TOTAL$ 206,890$ 227,527$ 235,124 City staff / Engineers provide data regarding signage for new developments, update existing signage and any other related sign changes. City staff, engineers, residents, local sheriff, Public Works and the general public also provide notification for Service Expenditure By Category necessary repairs for damaged signs. Personal Services Service Expenditure Highlights Supplies & Materials Minimal changes to Budgeted 2020 as compared to Current 2019. Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Sign Compliant Upgrades (# of zones)10.51 Damaged/Repair/Replace (# of signs)4598100 Upgrade Street Signs (6" to 9" signs)33518410 ActualCurrentBudgeted All Parks and Trail Signs152525 Expenditures Per Capita 201820192020 Traffic Counts (locations, every 4 yrs)671416Population - Estimates32,72832,97833,228 Sign Inventory / Verified (# of zones)213Monthly$ 0.53$ 0.57$ Speed Limit Signs (35mph)201523Annual$ 6.32$ 6.90$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Traffic Signals Cost Center: 43400 Director/Manager:City Engineer Activity Description ActualCurrentBudgeted Under the Anoka County Cost Share Policy, the City of Andover is responsible Staffing Levels 201820192020 for 1) the electrical cost of the overhead street lights at intersections and 2) theFTE EquivalentsN/AN/AN/A power of the traffic signal and maintenance costs for some aspects of the signal. The City has wayside horns at the railroad tracks at Andover Blvd NW and ActualCurrentBudgeted Crosstown Blvd NW.Service Expenditures 201820192020 Personal Services$ -$ -$ Process Used Supplies & Materials-- Intersections are signalized at various locations within the community based onOther Services / Charges23,37227,50027,500 the Anoka County cost share policy and the need of the community.Purchased Services10,48512,00012,500 TOTAL$ 33,857$ 39,500$ 40,000 Wayside horns have been installed to reduce the train horn noise at the following locations: Andover Blvd NW and Crosstown Blvd NW. Service Expenditures By Category Service Expenditure Highlights Anoka County Highway Department maintains all the traffic signals and EVP systems on their highway system throughout Andover and expenses continue to rise both Personal Services in actual costs and increased number of signals and EVP systems. Connexus Supplies & Materials Energy maintains the overhead street lights and 5 - 10 go out every year. Wayside horns require a monthly inspection/service visit and a bi-annual complete overview Other Services / Charges of the system. Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Traffic Signals:ActualCurrentBudgeted Within the Community192020 Expenditures Per Capita 201820192020 Shared (Anoka & Coon Rapids)777Population - Estimates32,72832,97833,228 Wayside Horns222Monthly$ 0.09$ 0.10$ Annual$ 1.03$ 1.20$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Street Lighting Cost Center: 43500 Director/Manager:City Engineer Activity Description ActualCurrentBudgeted Street lighting and safety lighting provides a safety measure for both pedestrians Staffing Levels 201820192020 and the motoring public. FTE EquivalentsN/AN/AN/A ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ -$ -$ Supplies & Materials-- Process Used Other Services / Charges32,82940,00040,000 Street lights are installed at critical intersections of county roads and city streets,Purchased Services-400 in addition to, other safety lighting needs.TOTAL$ 32,829$ 40,400$ 40,400 Service Expenditures By Category Service Expenditure Highlights Personal Services As the City continues to develop, new street lights are added with new and existing Supplies & Materials neighborhoods and at critical intersections within the City. Due to annual adjustments, maintenance, replacement, and/or repair of lights by Connexus Energy, the expenditures Other Services / Charges to service these lights have generally shown an upward trend in costs. Purchased Services ActualCurrentBudgeted Performance Measures 201820192020ActualCurrentBudgeted Number of Lights installed and Expenditures Per Capita 201820192020 maintained by private utility.305304330Population - Estimates32,72832,97833,228 Monthly$ 0.08$ 0.10$ Annual$ 1.00$ 1.23$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Street Lights Billed Cost Center: 43600 Director/Manager:City Engineer Activity Description ActualCurrentBudgeted The street lights that are internal to a residential development are funded by that Staffing Levels 201820192020 development or neighborhood. Both the operation and maintenance costs of theFTE EquivalentsN/AN/AN/A lights are billed to the neighborhood property owners. ActualCurrentBudgeted Service Expenditures 201820192020 Personal Services$ -$ -$ Supplies & Materials-- Other Services & Charges116,655147,500147,500 Process Used Purchased Services26,28233,00033,000 Connexus Energy operates, maintains and bills the residents for their street lights.TOTAL$ 142,937$ 180,500$ 180,500 Streets lights are only billed to neighborhoods that have the lights Service Expenditures By Category Personal Services Service Expenditure Highlights Supplies & Materials Due to annual adjustments, maintenance, replacement and/or repair of lights by Connexus Energy, the expenditures to service these lights have generally shown Other Services & Charges an upward trend in costs. The billing services contract continues to increase as Purchased Services well. ActualCurrentBudgetedActualCurrentBudgeted Performance Measures 201820192020 Expenditures Per Capita 201820192020 Number of Street Lights Billed1,2821,3011,320Population - Estimates32,72832,97833,228 Monthly$ 0.36$ 0.46$ Annual$ 4.37$ 5.47$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Parks & Recreation Cost Center: 45000 Director/Manager:Parks Maintenance Supervisor Activity Description ActualCurrentBudgeted The Parks Department maintains the entire City park and trail system. Most of Staffing Levels 20182019 the upgrades and additional developments of the parks are also done by theFTE Equivalents8.308.39 parks staff. Maintenance tasks include playground and play structures, ball infields, ice rinks, buildings and shelters, landscaping, trees and plantings, irrigation systems, painting, blacktop repair, trash and litter control, various ActualCurrentBudgeted construction projects, wood and metal fabrication, lighting and electrical, trail Service Expenditures 20182019 sign installs, and all turf and seed upkeep.Personal Services$ 802,137$ 839,436$ Supplies & Materials80,384112,400 Other Services / Charges216,446216,281 Process Used Purchased Services34,14260,900 The top priority for the Parks Department is to provide a safe product or facilityCapital Outlay149,305120,000 for all the public to use. Provide diverse activities for all groups and associations TOTAL$ 1,282,414$ 1,349,017$ 1,428,590 through the use of city parks and/or trail systems. Service Expenditures By Category Service Expenditure Highlights Budgeted 2020 includes any employee changes in health insurance, a COLA adjustment and any step changes for newer employees. Other Services / Charges changed due to an Personal Services increased allocation of Central Services for the operation and maintenance costs associated with parks equipment - mowers, trail machines, trucks and snow removal Supplies & Materials equipment. Other Services / Charges ActualCurrentBudgeted Purchased Services Performance Measures 201820192020 Number of City Parks maintained535353 Capital Outlay Total acreage mowed336336338 Ballfields maintained272727 Number of playgrounds424242 ActualCurrentBudgeted Total soccer fields maintained202020 Expenditures Per Capita 20182019 Miles of trail maintained373940Population - Estimates32,72832,978 Ice Rinks / Warming Houses12 / 412 / 412 / 4Monthly$ 3.27$ 3.41$ Annual$ 39.18$ 40.91$ A D O P T E D 2 0 2 0 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: 0101 - General Department:Natural Resource Preservation Cost Center: 45500 Director/Manager:City Engineer ActualCurrentBudgeted 201820192020 ActualCurrentBudgeted 201820192020 TOTAL$5,158$18,107$14,216 ActualCurrentBudgeted 201820192020 ActualCurrentBudgeted 201820192020 A D O P T E D 2 0 2 0 B U D G E T C I T Y O F A N D O V E R , M I N N E S O T A 89 Fund: 0101 - General Department:Recycling Cost Center: 46000 Director/Manager:Recycling Coordinator ActualCurrentBudgeted 201820192020 ActualCurrentBudgeted 201820192020 TOTAL$ 199,182$ 198,626$ 193,971 ActualCurrentBudgeted 201820192020 ActualCurrentBudgeted 201820192020 A D O P T E D 2 0 2 0 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 90 Fund: 0101 - General Department:Unallocated Cost Center: 49100 Director/Manager:Finance Director ActualCurrentBudgeted 201820192020 ActualCurrentBudgeted 201820192020 TOTAL$ 241,940$ 95,428$ 95,928 ActualCurrentBudgeted 201820192020 A D O P T E D 2 0 2 0 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 91 This page left blank intentionally. 92 CITY OF ANDOVER, MINNESOTA 2020ANNUAL BUDGET SPECIAL REVENUE FUNDS DEFINITION: Special revenue funds are established to justify revenue sources to finance particular functions or projects. Revenue for these funds can come from a variety of sources, such as taxes, fees, gifts and grants or contributions from other governmental entities. Expenditures from these funds are normally restricted by statute, local ordinance, or grant agreements. The funds may be used for either operations or capital outlay as legal restrictions mandate. 93 This page left blank intentionally. 94 95 96 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 97 98 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 99 100 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 101 102 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 103 104 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 105 106 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 107 108 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 109 110 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 111 112 Fund: Activity Type/Code:Department Head: A D O P T E D 2 0 2 0 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 113 This page left blank intentionally. 114 CITY OF ANDOVER, MINNESOTA 2020ANNUAL BUDGET DEBT SERVICE FUNDS DEFINITION: A debt service fund accounts for the accumulation of resources for, and the payment of general long-term principal and interest. Repayment of the debt through principal and interest payments to bond holders is backed by the full faith and credit of the government unit. 115 This page left blank intentionally. 116 117 118 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 119 120 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 121 122 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 123 124 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 125 126 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 127 128 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 129 130 Fund: Cost Center: Department Head: Activity Type/Code: A D O P T E D 2 0 2 0 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 131 This page left blank intentionally. 132 CITY OF ANDOVER, MINNESOTA 2020ANNUAL BUDGET CAPITAL PROJECTS FUNDS DEFINITION: Capital Projects Funds can be used to account for acquisition or construction of major capital facilities financed mainly with governmental fund resources, general obligation debt, special assessments, special assessment debt, grants, or other resources that are not part of proprietary funds or trust funds. 133 This page left blank intentionally. 134 135 136 Fund:4110 Cost Center:Water Trunk Department Head: City Engineer Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 137 138 Fund:4120 Cost Center:Sewer Trunk Department Head: City Engineer Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 139 140 Fund:4130 Cost Center:Storm Sewer Department Head: City Engineer Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 141 142 Fund:4140 Cost Center:Road and Bridge Department Head: City Engineer Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 143 144 Fund:4150 Cost Center:Park Dedication Projects Department Head: City Engineer Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 145 146 Fund:4160 Finance Director Cost Center:Building Fund Department Head: Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 147 148 Fund:4170 Cost Center:Trail & Transportation Activity Type/Code:Capital Projects Department Head: A D O P T E D 2 0 2 0 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 149 150 Fund:4180 Cost Center:Capital Equipment Reserve Activity Type/Code:Capital Projects Department Head: A D O P T E D 2 0 2 0 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 151 152 Fund:4214 Cost Center:2020A G.O. Equipment Certificates Department Head: Finance Director Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 153 154 Fund:4303 Cost Center:2018A G.O. Capital Improvement Plan Bonds Department Head: Finance Director Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 155 156 Fund:4403 Cost Center:2019 G.O. Abatement Bonds Department Head: Finance Director Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 157 158 Fund:4501 Cost Center:Tax Increment Projects Department Head: Finance Director Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 159 160 Fund:4601 Cost Center:Permanent Improvement Revolving Department Head: Finance Director Activity Type/Code:Capital Projects A D O P T E D 2 0 2 0 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 161 This page left blank intentionally. 162 CITY OF ANDOVER, MINNESOTA 2020ANNUAL BUDGET ENTERPRISE FUNDS DEFINITION: Governments establish enterprise funds to account for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. 163 This page left blank intentionally. 164 165 166 Fund: 5100 - Water Department:Water Cost Center: 48100 Director/Manager:Utilities Supervisor Activity Description ActualCurrentBudgeted Operate and maintain the City's water system including WTP, wells, towers and Staffing Levels 201820192020 water mains. Provide a continuous, potable, bacteria free water supply at properFTE Equivalents4.524.574.57 pressure levels. Maintain customer water meters and respond to other service requests. Maintain water distribution for fire protection system needs. Conform to ActualCurrentBudgeted all State and Federal monitoring rules, provide tours and information to the public.Service Expenses 201820192020 Personal Services$ 483,705$ 503,007$ 521,912 Process Used Supplies & Materials210,044268,300259,300 Operate wells and WTP in a manner that ensures a safe, clean and adequate waterOther Services / Charges423,312418,440406,040 supply, that will meet peak daily demands and fire protection demands. MaintainPurchased Services238,056335,800354,800 wells, treatment facility, and related infrastructure. Operate and maintain chemicalCapital Outlay-70,000- feed equipment. Collect, analyze and record water samples daily. Maintain,Debt Service729,884781,980786,500 test and repair water meters. Respond to emergencies 24 hours a day. WorkOther Uses90,700552,909416,625 with contractors to locate watermains, locate and operate gate valves, monitor TOTAL$ 2,175,701$ 2,930,436$ 2,745,177 tests during final inspections. Check WTP, 8 wells, 7 days a week, 365 days per year. Flush all watermains in the spring every other year. Maintain all hydrants. Service Expenses By Category Locate, operate and clean gate valves to ensure proper operation. Personal Services Service Expense Highlights Supplies & Materials Current 2019 includes a one-time transfer of $157k for the construction of the new Other Services / Charges vehicle maintenance facility, wash bay and cold storage building. It also includes an annual operating transfer of $300k for the creation of a replacement reserve balance for Purchased Services future trunk replacements in the Water Trunk Capital Projects Fund. Capital Outlay ActualCurrentBudgeted Debt Service Performance Measures 201820192020 Number of connections6,7256,8156,900 Other Uses Number of wells888 Number of elevated storage tanks222 Water Treatment Facility111 Expenses Per Connection ActualCurrentBudgeted Miles of water main119.5120.7122 201820192020 Number of hydrants1,2621,2831,300Connections6,7256,8156,900 Number of valves3,0053,0293,060Monthly$ 26.96$ 35.83$ 33.15 Annual$ 323.52$ 430.00$ 397.85 A D O P T E D 2 0 2 0 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 167 168 Fund: 5200 - Sanitary Sewer Department:Sanitary Sewer Cost Center: 48200 Director/Manager:Utility Supervisor Activity Description ActualCurrentBudgeted City sewage is collected through a pipe and lift station network to large Metro Staffing Levels 201820192020 City Sewer interceptor pipes that carry it to the Metro Treatment Plant forFTE Equivalents3.083.333.33 processing. The sewer division inspects, cleans, and maintains the City's collection system which includes breaks in pipes, manholes, and lift stations. Sewer backups caused by blockage due to debris or breaks in pipe are cleaned ActualCurrentBudgeted and/or repaired immediately. This department maintains the integrity of the entire Service Expenses 201820192020 sanitary sewer system.Personal Services$ 340,736$ 376,637$ 390,964 Supplies & Materials18,04537,80034,800 Process Used Other Services / Charges92,09097,090100,858 Inspect all lift stations five days per week. Clean one-quarter of the City's Purchased Services1,168,6491,335,0381,385,900 sewer collection system via jetting and vacuuming each year. City has implemented aCapital Outlay--- televising program of the collection system that analyzes the entire system over a Other Uses470,012631,640499,773 five year period. A spot check program checks flows in problem areas. Start I/I TOTAL$ 2,089,532$ 2,478,205$ 2,412,295 program to monitor inflow and infiltration into sewer system. Clean known problem area once per month. Monitor inspection and testing of all new sewer lines and Service Expenses By Category manholes before accepting from contractor. Respond to and record all requests from customers, respond to emergencies 24 hours a day. Contract out all major Personal Services system repairs. Supplies & Materials Service Expense Highlights Current 2019 includes a one-time transfer of $157k for the construction of the new Other Services / Charges vehicle maintenance facility, wash bay and cold storage building. Purchased Services Capital Outlay Other Uses ActualCurrentBudgeted Performance Measures 201820192020 Number of SAC's9,3219,4119,496 ActualCurrentBudgeted Number of lift stations91010 Expenses Per Connection 201820192020 Miles of sewer main98.599.7101SAC's9,3219,4119,496 Number of sewer manholes2,3482,3762,400Monthly$ 18.68$ 21.94$ 21.17 Annual$ 224.17$ 263.33$ 254.03 A D O P T E D 2 0 2 0 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 169 170 Fund: 5300 - Storm Sewer Department:Storm Sewer Cost Center: 48300 Director/Manager:Utility Supervisor Activity Description ActualCurrentBudgeted Maintenance of all storm sewers, catch basins, manholes, pipes, ditches, and Staffing Levels 201820192020 sediment ponds. FTE Equivalents2.382.402.40 ActualCurrentBudgeted Process UsedService Expenses 201820192020 The ditches and storm water ponds are cleaned with a backhoe for better drainage and toPersonal Services$ 233,838$ 239,232$ 247,808 avoid the ponding of stagnant water. This dirt is hauled away or dumped in low placesSupplies & Materials21,60933,20030,200 on ditch banks. When it is dumped on site, it becomes necessary to level and gradeOther Services / Charges45,84550,39653,238 the banks to facilitate proper mowing. All catch basins and pipes are inspected andPurchased Services49,805145,500148,500 cleaned with a vac truck. The material is then hauled away for proper disposal.Capital Outlay--- Occasional use of outside contractors to maintain parts of the system. Televising a Other Uses41,346108,26043,090 portion of the system each year to help comply with new state and federal regulations.TOTAL$ 392,443$ 576,588$ 522,836 Streets are swept twice a year and as needed to protect water quality and reduce maintenance to infrastructure.Service Expenses By Category Personal Services Service Expense Highlights Supplies & Materials Current 2019 inlcudes a one-time transfer ($65,935) to close the Storm Water Capital Other Services / Charges Projects Fund since development of the area has changed the way storm water will flow. Purchased Services Capital Outlay Other Uses ActualCurrentBudgeted Performance Measures 201820192020 Number of billable units10,97111,06111,146 Mileage of storm lines maintained7879.580.4 ActualCurrentBudgeted Maint. of catch basins & manholes3,9283,9804,016 Expenses Per Customer 201820192020 Maint. of sedimentation ponds299306310Billable Units10,97111,06111,146 Maint. of culverts386386386Monthly$ 2.98$ 4.34$ 3.91 Number of miles swept387389.8393Annual$ 35.77$ 52.13$ 46.91 A D O P T E D 2 0 2 0 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 171 This page left blank intentionally. 172 CITY OF ANDOVER, MINNESOTA 2020ANNUAL BUDGET INTERNAL SERVICE FUNDS DEFINITION: Internal Service Funds are used to account for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. 173 This page left blank intentionally. 174 175 176 Fund: 6100 - Central Equipment Department:Vehicle Maintenance Cost Center: 48800 Director/Manager:Vehicle Maintenance Supervisor Activity Description ActualCurrentBudgeted Maintains and repairs all City motorized and non-motorized vehicles and equipment Staffing Levels 201820192020 to provide safe operation. Evaluates equipment needs, orders equipment/vehiclesFTE Equivalents3.253.253.34 and writes specifications. The department maintains nearly 500 pieces of equipment, in addition to normal preventative maintenance procedures of tires, brakes, electrical, fabricating and body work. All work; except automatic transmission overhauls, major ActualCurrentBudgeted engine and major body work are done at the Public Works garage. Staff inspects Service Expenditures 201820192020 garbage trucks as part of their licensure process, and performs commercial vehiclePersonal Services$ 293,888$ 302,093$ 324,657 inspections required on all applicable City vehicles.Supplies & Materials324,786388,210380,300 Other Services / Charges74,21375,222168,872 Process Used Purchased Services43,75948,60048,600 City equipment is scheduled for normal service by miles driven or hours/days TOTAL$ 736,646$ 814,125$ 922,429 of service. Most work is done based on a first-in-first-out with the exception of that emergency repairs are done in the order of importance. Emergency equipment are fire vehicles and snow plow equipment, streets, utilities, and parks. Non-emergency Service Expenditures By Category equipment are the Building and Engineering departments, Planning and Zoning department and all other city equipment. Personal Services Service Expenditure Highlights Supplies & Materials Personal Services changed primarily due to a COLA change. Other Services / Charges includes the utilities of the new vehicle maintenance facility and washbay. Other Services / Charges Purchased Services ActualCurrentBudgeted Performance Measures 201820192020 Number of motorized equipment312317320 Number of non-motorized equipment503504505 ActualCurrentBudgeted Inspections99103105 Expenditures Per Capita 201820192020 Fuel - Unleaded (gal)9,11414,13010,000Population - Estimates32,72832,97833,228 Fuel - Diesel (gal)29,47442,31533,000Monthly$ 1.88$ 2.06$ 2.31 Annual$ 22.51$ 24.69$ 27.76 A D O P T E D 2 0 2 0 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 177 178 Fund: 6200 - Risk Management Department:Risk Management Cost Center: 48900 Director/Manager:Finance Director Activity Description ActualCurrentBudgeted The Risk Management Fund was established to provide funding for compensated Staffing Levels 201820192020 absences, safety, training, loss reduction and insurance premium deductibles. FTE Equivalents0.100.100.10 Social security and Medicare tax savings resulting from participation in the "cafeteria plan" are recorded in this fund on an annual basis. This fund also functions to mitigate significant rate increases or decreases. Departmental rates are ActualCurrentBudgeted managed by analyzing claims history.Service Expenditures 201820192020 Personal Services$ 166,243$ 189,828$ 210,440 Supplies & Materials23,03828,30028,800 Other Services / Charges232,848241,600241,600 Process Used Purchased Services11,3247,2507,250 The City Administrator / Finance Director along with the Human Resources Manager TOTAL$ 433,453$ 466,978$ 488,090 promote various safety and wellness programs with the funding received. One of the most notable products is the wellness fitness room. Safety training is provided both in-house and by contracting for service. The city works through a broker and Service Expenditures By Category is provided insurance for general liability, automotive and workers' compensation through the League of MN Cities Insurance Trust. Personal Services Supplies & Materials Service Expenditure Highlights No major changes planned for Budgeted 2020. Worker Comp premium continues Other Services / Charges to increase. Purchased Services ActualCurrentBudgeted Expenditures Per Capita 201820192020 Population - Estimates32,72832,97833,228 Monthly$ 1.10$ 1.18$ 1.22 Annual$ 13.24$ 14.16$ 14.69 A D O P T E D 2 0 2 0 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 179 This page left blank intentionally. 180 CITY OF ANDOVER Budget Year 2020 Operating Transfers Transfer InTransfer OutAmountPurpose General FundWater EF$ 93,975Admin allocation General FundSewer EF77,123Admin allocation General FundStorm Sewer EF19,590Admin allocation 2012C GO Abatement Bonds DSFCommunity Center SRF300,000Debt service allocation 2018A GO Capital Improvement Plan Bonds DSFWater EF22,650Debt service allocation 2018A GO Capital Improvement Plan Bonds DSFSewer EF22,650Debt service allocation 2019A GO Taxable Abatement Bonds DSFPark Dedication CPF175,146Debt service allocation Water Trunk CPFWater EF300,000Replacement reserve Sewer Trunk CPFSewer EF400,000Replacement reserve Road and Bridge CPFRight of Way Management/Utility SRF5,700Roadway degredation Building Fund CPF2014A GO Equipment Certificate DSF89,344Close debt service fund Capital Equipment Reserve CPFStorm Sewer EF23,500Debt service allocation Water EFWater Trunk CPF59,740Debt service allocation $ 1,589,418 181 CITY OF ANDOVER 2020-2024CIP Development Calendar DateActivityResponsibility March26,20192020 -2024CIP Council Workshop to determine CIP guidelines.City Council / Staff April2,2019Council adopts 2020Budget Development Guidelines.City Council / Staff April 5,2019Draft 2020 -2024CIP Calendar.Finance April 5-May 1,2019Prepare base CIP Sheets.Finance April 18,2019Vehicle Purchasing Committee review of CIP equipment.Vehicle Purchasing Committee April 23,20192020 -2024Capital Improvement Plan DiscussionCity Council / Staff May 2,2019CIP kick-off meeting with Department Heads to discuss CIP sheet content.Department Heads May 3,2019Projected cash flow statements prepared.Finance May 28,2019City Council progress update and Council CIP priority discussion.City Council / Staff June 3,2019All projects updated in CIP program.Department Heads June 7,2019Review projects new and shifts.Department Heads June 25,2019City Council progress update and Council CIP priority discussion.City Council / Staff July -August, 2019Commission and Committee review.Admin / Department Heads July 1,2019CIP project sheets completed.Department Heads July 5,2019CIP project sheets staff initial review.Admin / Department Heads July 5,2019Vehicle Purchasing Committee review of CIP equipment.Vehicle Purchasing Committee July 13,2019City Council review of City Utilities projects.City Council / Staff August 1,2019CIP project sheet staff final review.Admin / Department Heads August 5-16,2019Preparation of final draft of 2020 -2024CIP for Council Workshop.Finance August 27,2019City Council review of draft 2020 -2024CIP.City Council / Staff September 24,2019Council Workshop progress report; public comment update.City Council / Staff October 15,2019City Council holds 2020 -2024CIP public hearing.City Council October 15,2019City Council adopts 2020 -2024CIP.City Council 182 City of Andover, MN Capital Plan 20202024 thru PROJECTS & FUNDING SOURCES BY DEPARTMENT DepartmentProject #Priority20202021202220232024 Total Central Equipment Replacement - Service Truck #37121-48800-01245,000 45,000 Capital Equipment Reserve45,00045,000 Replace unit #371, a 2001 S10 Ext Cab 4x4 truck with 133,877 miles. The replacement truck would be a crew cab with a tailgate lift. 45,000 45,000 Central Equipment Total Community Center Replacement- Sinks/Fixtures20-44000-01115,000 15,000 Comm Ctr Operations15,00015,000 Replace all sinks and fixture throughout the facility. Refacing Rink Boards20-44300-01130,000 30,000 Comm Ctr Operations30,00030,000 Replace the white poly and yellow kick plates on the rink boards along with new netting above the glass on the ends. Refrigeration Equipment Conversion20-44300-021323,478 323,478 Comm Ctr Operations50,00050,000 Facility Maintenance Reserve273,478273,478 Convert the existing r-22 freon system to a new ammonia based refrigeration system that is being installed for the new sports complex. Fieldhouse Floor Repair20-44400-011184,634 184,634 Capital Equipment Reserve134,634134,634 Comm Ctr Operations50,00050,000 Repair cracks/failed concrete in two corners of the fieldhouse floor and resurface the entire floor with new paint. Replacement - Floor Scrubber21-44000-01115,000 15,000 Comm Ctr Operations15,00015,000 Replace the floor scrubber that is used daily in the community center. Remodel Old Proshop Area21-44000-02120,000 20,000 Comm Ctr Operations20,00020,000 We will be moving the pro shop to a new space with the expansion of the facility. The old space will be re-purposed. Replacement - Kaivac Cleaning System21-44000-0316,000 6,000 Comm Ctr Operations6,0006,000 183 DepartmentProject #Priority20202021202220232024 Total Kaivac Cleaning system is used to clean bleachers and player box areas. It is a power washer and wet vac system. Exterior Caulking21-44000-04150,000 50,000 Comm Ctr Operations50,00050,000 Cut out and replace exterior caulking between precast panel joints Replacement - Lobby Furniture21-44000-05125,000 25,000 Comm Ctr Operations25,00025,000 Replace the lobby furniture including tables, chairs and garbage cans. Repaint Field House Ceiling21-44200-01150,000 50,000 Comm Ctr Operations50,00050,000 Peel/scrape paint from fieldhouse ductwork. Refinish wooden benches21-44300-0116,000 6,000 Comm Ctr Operations6,0006,000 Refinish the wood benches that are in all of the rink locker rooms and the public skate area. Concrete Floor Sealant22-44000-01136,000 36,000 Comm Ctr Operations36,00036,000 Strip and reseal existing colored concrete floor throughout the facility. Replacement - Electric Edger22-44300-02110,000 10,000 Comm Ctr Operations10,00010,000 Replace the electric edger used for ice maintenance. Carpet - Office/Fieldhouse Foyer23-44000-01115,000 15,000 Comm Ctr Operations15,00015,000 Replacement of carpet in office area and fieldhouse foyer. Replacement - Roof23-44000-0211,300,000 1,300,000 Comm Ctr Operations1,300,0001,300,000 Full roof replacement (rubber membrane). Replacement - Zamboni Battery Pack23-44300-01115,000 15,000 Comm Ctr Operations15,00015,000 Replace the battery pack for the electric Zamboni. 2,101,112 553,112172,00046,0001,330,000 Community Center Total Emergency Management Emergency Operations Center Improvement20-42400-01110,00010,000 20,000 Capital Equipment Reserve10,00010,00020,000 Construct a functional Emergency Operational Center (EOC) by improving workable space at fire station #1 located at 13578 Crosstown Blvd. The improvements include light station modifications, technology improvements, lockable cabinets/storage, hand-held and stationary radios. The funds will be used to resurface the flooring on the upper level of the fire station, cut a new door into a wall, add new technology such as screens, phones, WiFi, Map Boards, and change locks so the EOC can be secured. New - Emergency Siren Additions20-42400-02155,000 55,000 Capital Equipment Reserve55,00055,000 184 DepartmentProject #Priority20202021202220232024 Total Add an additional emergency warning siren in the north central rural part of Andover. Replacement - Emergency Sirens21-42400-01140,00040,00040,00040,000 160,000 Capital Equipment Reserve40,00040,00040,00040,000160,000 Replace 7 older emergency sirens, two per year. 65,00050,00040,00040,00040,000 235,000 Emergency Management Total Engineering New Development Projects20-41600-011175,000180,000185,000190,000200,000 930,000 Sewer Trunk Fund125,000125,000125,000130,000135,000640,000 Water Trunk Fund50,00055,00060,00060,00065,000290,000 New developments include the construction of sanitary sewer, water main, storm sewers and streets. Since the majority of the improvement projects are being privately installed by the developer, the following expenditures are the city's share for trunk water and sewer improvements. Pedestrian Trail Maintenance20-41600-02163,00066,00069,00072,00075,000 345,000 Road & Bridge Funds63,00066,00069,00072,00075,000345,000 This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system. Pedestrian/Park Trail Reconstruction20-41600-03170,000320,000370,000220,000230,000 1,210,000 Capital Equipment Reserve70,00070,000 General Fund320,00050,00060,000430,000 Road & Bridge Funds370,000170,000170,000710,000 As the City's trail system ages and deteriorates, reconstruction of segments becomes necessary to maintain the high quality trail system that is so sought after in Andover. 2020: Hills of Bunker Lake West Park ($140,000: $70,000 carryforward from 2019) 2021: Kelsey Round Lake Park ($320,000) 2022: Tom Anderson Trail (Hanson Blvd to Bunker Lake Blvd) ($370,000) 2023-2025 Projects based on annual condition inspections. Pedestrian Curb Ramp Replacements20-41600-04119,00020,00022,00024,00026,000 111,000 Road & Bridge Funds19,00020,00022,00024,00026,000111,000 This project will result in the City trails and sidewalks being in compliance with the Americans with Disabilities Act by replacing existing pedestrian curb ramps to meet standards. Replacement - 3/4 Ton Truck #1220-41600-05230,000 30,000 Equipment Bond30,00030,000 To replace unit #12, a 1997 Dodge pick up truck with 84,929 miles. New Pedestrian Trail and Sidewalk Segments20-41600-061405,000722,000259,000675,000 2,061,000 Grant193,550193,550 Park Dedication Funds99,00099,000 Trail Funds112,450722,000259,000675,0001,768,450 185 DepartmentProject #Priority20202021202220232024 Total The City of Andover has an extensive trail and sidewalk system for pedestrians and bikers. Future planned trail and sidewalk connections provide key links within the existing system. The following segments are proposed to be constructed as funds become available: 2020 10' Bit. Andover Station North Trail Connection($230,000 total - Partial DNR Grant-$117,550) 8' Bit. Trail Kelsey Round Lake Park ($175,000 total - DNR Grant max $76,000) 2022: 8' Bit. Trail along Crosstown Blvd - Xeon Street to Rail Road Tracks ($168,000) 8' Bit. Trail along Crosstown Blvd - Rail Road Tracks to 157th Ave ($304,000) 8' Bit. Trail along Crosstown Blvd - 157th Ave to 159th Ave ($250,000) 2023: 8' Bit. Trail along Station Parkway - Thrush St to Partridge Cir. ($74,000) 8' Bit. Trail along Station Parkway - Patridge Cir. To Hanson Blvd ($185,000) 2024: 8' Bit. Trail and Boardwalk along Verdin Street - 161st Ave to 163rd Lane ($675,000) Railroad Underpass Trail20-41600-07112,000330,000 342,000 Trail Funds12,000330,000342,000 Construct a Railroad Underpass Trail to connect internal development trails from the Winslow Cove 2nd Addition development to the east side of the railroad tracks. Land was acquired in 2019. Fifty percent design in 2020 ($12,000). Construction in 2022 ($330,000). Replacement - Pick Up Truck #622-41600-01240,000 40,000 Equipment Bond40,00040,000 Replace unit #6, a 1996 Dodge pick up truck with 97,561 miles. 5,069,000 774,000586,0001,738,000765,0001,206,000 Engineering Total Facility Management Annual Parking Lot Maintenance/Replacement20-41900-011250,00039,000230,000150,00044,000 713,000 Facility Maintenance Reserve250,00039,000230,000150,00044,000713,000 Yearly maintenance of the City parking lots is necessary to prolong the life of the pavements. Parking lots that need maintaining include those at the City Hall complex, Public Works, Community Center, at City parks, and at the Fire Stations. Yearly maintenance may include crack sealing, seal coating, and mill and overlays. Maintenance will generally be completed with the street zones, or on an as needed basis. Parking lots also need to be reconstructed when they have exceeded the design life. Lots that are at that point are as follows: 2020 Public Works drive between the Water Treatment Plant and drive aisle around old fuel island and east side of main garage. This project will also include the removal of the old fuel island and tanks. 2022 City Hall parking lot reconstruction and expansion along with the drive lane to the City Hall garage. 2023 Fire Station 2 parking lot. Surface Seal all Brick Structures20-41900-02185,000 85,000 Comm Ctr Operations12,00012,000 Facility Maintenance Reserve48,00048,000 Water Fund25,00025,000 A surface sealing application would be initiated for all brick and/or block municipal buildings. The buildings include: City Hall, Public Works, Fire Station 1, 2, & 3, Sunshine Park Building, Prairie Knoll Park Building, Andover Station North Park Building, Community Center and all utility department buildings such as the pump houses and treatment facility. Replacement - Furnace/Condenser PW20-41900-0326,000 6,000 General Fund6,0006,000 186 DepartmentProject #Priority20202021202220232024 Total Replace the Bryant furnance/condensing unit at Public Works. Replacement - Furnace/Condenser Coil PW20-41900-0426,000 6,000 General Fund6,0006,000 Replace the Rheem furnace and condensing coil at Public Works. Fencing Around Public Yard20-41900-061110,000 110,000 Facility Maintenance Reserve110,000110,000 Construct a 6 foot fence around the north side of Public Works to provide screening and security. Replacement - Tube Heaters PW21-41900-01180,000 80,000 Facility Maintenance Reserve80,00080,000 Replace the tube heaters in garage A, B and C at Public Works. Replacement - Air Handling Unit/Condenser FS #121-41900-0216,000 6,000 General Fund6,0006,000 Replace the air handling unit/condenser at Fire Station #1. Replacement - Tube Heaters FS #121-41900-03125,000 25,000 Facility Maintenance Reserve25,00025,000 Replace the tube heaters in the truck bay at Fire Station #1. New - Diesel Exhaust Capturing System FS #121-41900-04145,000 45,000 Facility Maintenance Reserve45,00045,000 Install a vehicle exhaust capturing system at Fire Station #1. Replacement - Roof Top Package Unit PW22-41900-01245,000 45,000 Facility Maintenance Reserve45,00045,000 Replace the Trane roof top package unit that supplies the office area at Public Works. Replacement - Emergency Generator FS #123-41900-01150,000 50,000 Facility Maintenance Reserve50,00050,000 Replace the emergency generator at Fire Station #1. Replacement - Emergency Generator FS #223-41900-02135,000 35,000 Facility Maintenance Reserve35,00035,000 Replace the emergency generator and transfer switch at Fire Station #2. Replacement - Emergency Generator FS #323-41900-03150,000 50,000 Facility Maintenance Reserve50,00050,000 Replace the emergency generator at fire station #3. Replacement - Make Up Air Unit /Exhaust Fan PW23-41900-041125,000 125,000 Facility Maintenance Reserve125,000125,000 Replace the make up air unit/exhaust fan in Mechanics shop at Public Works. Building A - Seal Floor23-41900-05130,000 30,000 Capital Equipment Reserve30,00030,000 Apply a sealant to the cement floor in Building A (large garage). Replacement - Carpet / Tile24-41900-01130,000 30,000 Facility Maintenance Reserve30,00030,000 187 DepartmentProject #Priority20202021202220232024 Total The replacement of carpet and tile in appropriate areas of all City buildings where deemed necessary. An annual review of all areas will be done to determine the order of replacement. 1,441,000 457,000195,000275,000440,00074,000 Facility Management Total Finance Financial / Payroll System Upgrade / Replacement21-41400-011225,000 225,000 Capital Equipment Reserve225,000225,000 Upgrade or replace the current financial/payroll software program. 225,000 225,000 Finance Total Fire Replacement - Turnout Gear20-42200-01123,00024,00025,00025,00026,000 123,000 General Fund23,00024,00025,00025,00026,000123,000 Replace worn turnout gear. The turnout gear consists of a coat and bunker pants with suspenders. Other personal protective gear includes helmets, boots, nomex hood, goggles and appropriate protective gloves. Replacement - Engine 21 #488420-42200-021510,000 510,000 Equipment Bond510,000510,000 Replace unit #4884, a 1997 Pierce Quantum Engine with 1658 hours and 29,242 miles. Replacement - (2) SCBA Compressors St 2 & 320-42200-03165,00065,000 130,000 Equipment Bond65,00065,000130,000 Replace self contained breathing apparatus compressors at station 2 and 3. These compressors are used to fill breathing air into the bottles we wear on our backs to enter dangerous conditions. Replacement - 800 MHz radios20-42200-04246,00046,00046,00046,00046,000 230,000 Capital Equipment Reserve46,00046,00046,00046,00046,000230,000 The current 800 MHz. handheld and mobile radios used by the fire department and Public Works are no longer manufacturered. In addition, the service support for maintenance and repair for the same radios will not be available after 2019. The fire department currently has 37 hand held radios and has a need to increase to 40. The fire department also has 16 mobile radios mounted in vehicles or used as a base station at all three stations. The Public Works Department has 6 hand held radios that can be used to contact agencies on the 800 MHz. frequency. Replacement - Grass Utility Vehicle (UTV) #481321-42200-01145,000 45,000 Equipment Bond45,00045,000 Replace unit #4813, a Polaris 6 x 6 with 128 miles that is used for wildland fires. Replacement - Thermal Imaging Cameras21-42200-02145,000 45,000 Equipment Bond45,00045,000 Thermal Imaging cameras are high end hand held heat seeking devices used to spot fires in enclosed areas through heavy smoke. It uses heat seeking technology to determine temperatures within a room. They are also used to find victims in heavy smoke conditions when firefighters cannot see. This is a critical tool for firefighters on the attack line. Replacement - Engine 31 #480022-42200-011475,000 475,000 Equipment Bond475,000475,000 Replace unit #4800 - a 2000 Pierce Quantum Engine with 21,211 miles. 188 DepartmentProject #Priority20202021202220232024 Total Replacement - Rescue 31 #481822-42200-021100,000 100,000 Equipment Bond100,000100,000 Replace unit #4818 - a 2006 Chevrolet 3500 four door truck with 16,950 miles. 644,000225,000646,00071,00072,000 1,658,000 Fire Total Information Technology Windows Server 2019 DataCenter Licenses20-41420-01212,000 12,000 Capital Equipment Reserve12,00012,000 Windows server operating system upgrades. Current server operating systems vary from 2008 Server & 2012 Server. Aruba Switch Upgrade20-41420-02110,000 10,000 Capital Equipment Reserve10,00010,000 Upgrade current switch infrastructure to new 48 port switches in city hall to eliminate bottlenecks and number of physical devices from 4 to 2. 22,000 22,000 Information Technology Total Park & Rec - Operations Replace/Repair Play Structures - Various Parks20-45000-011100,000100,000100,000100,000100,000 500,000 General Fund100,000100,000100,000100,000100,000500,000 The parks listed are in need of replacing the existing playground equipment and repairing the fall zones to achieve ADA accessibility. The proposed playground equipment improvements/rebuilds are as follows: 2020 - Strootman Park and Hidden Creek North Park 2021 - Sunshine Park and Hawkridge Park 2022 - Prairie Knoll Park and Rose Park 2023 - Wild Iris Park and Hills of Bunker Lake West Park 2024 - Hidden Creek East Park, Oakview Park & Shady Knoll Park Replace/Repair Major Park Projects - Various Parks20-45000-02120,00035,00035,00035,00035,000 160,000 General Fund20,00035,00035,00035,00035,000160,000 Future Projects: Fence rebuilds at various parks, shelter replacements and parking lot reconstruction. Replacement - Water Tanker #16120-45000-031175,000 175,000 Equipment Bond175,000175,000 Replace unit #161, a 2002 water tanker truck with 63,630 miles. It is used to water new turf, shrubs and trees in the parks during the summer; flushing the medians in the spring; and flooding rinks in the winter. New - Large Capacity Mower20-45000-041110,000 110,000 Equipment Bond110,000110,000 Purchase Toro Groundmaster 5910 or equivalent (New Purchase). Replacement - Cushman Field Dresser #54721-45000-01127,000 27,000 Equipment Bond27,00027,000 Replace unit #547, 1994 Cushman field dresser with 3,630 hours. 189 DepartmentProject #Priority20202021202220232024 Total Replacement - Trailer #T-55521-45000-02118,000 18,000 Equipment Bond18,00018,000 Replace unit #T-555, a 1993 trailer that has under gone a number of refurberations. It would be replaced with a new galvanized trailer. New - Turbine Tow-Behind Blower21-45000-0318,000 8,000 Capital Equipment Reserve8,0008,000 The turbine tow-behind debris blower can be used to blow off leaves, disperse grass clippings from athletic fields, and sand/other debris off of trails. This can be pulled behind a Workman which is lightweight and able to drive on athletic fields; while the other blower attachment in our current inventory is used primarily with blowing off trails (due to the weight of the trail machines). Replacement - Large Capacity Mower #58522-45000-011120,000 120,000 Equipment Bond120,000120,000 Replace unit #585, a 2001 Toro Groundmaster 580-D with 2,449 hours. Replacement - Tractor #51522-45000-02150,000 50,000 Equipment Bond50,00050,000 Replace unit #515, a 2002 John Deere tractor with 4,890 hours.. 405,000188,000305,000135,000135,000 1,168,000 Park & Rec - Operations Total Park & Rec - Projects Annual Miscellaneous Park Projects20-45001-01115,00015,00015,00015,00015,000 75,000 Park Dedication Funds15,00015,00015,00015,00015,00075,000 This is for unforeseen or requested miscellaneous projects that may arise during the year, requested by the public, staff, City Council or the Park and Recreation Commission each year. Andover Station North East Ball Field Lighting20-45001-021180,000 180,000 Donations90,00090,000 Park Dedication Funds90,00090,000 Lighting the ball field will allow the baseball association to play additional games during evening hours during summer months. The baseball and football association would also use the lights during the fall since the daylight hours are much shorter. Prairie Knoll North Parking Lot Impr20-45001-031170,000 170,000 Park Dedication Funds170,000170,000 Pave and curb the existing north parking lot. Dalske Preserve Boardwalk23-45001-011110,000 110,000 Capital Equipment Reserve110,000110,000 A boardwalk is required on the Dalske Preserve property to provide access across Ditch 21 to the south side of the open space property. 195,000185,00015,000125,00015,000 535,000 Park & Rec - Projects Total Sanitary Sewer Lift Station Improvements20-48200-01190,000 90,000 Assessments90,00090,000 2020: Upgrade to Aztec Estates Lift Station ($90,000) (Assessed). 190 DepartmentProject #Priority20202021202220232024 Total Rural Reserve Trunk Sanitary Sewer25-48200-0113,500,000 3,500,000 Assessments1,250,0001,250,000 Sewer Revenue Bonds2,250,0002,250,000 Extension of trunk sanitary sewer from Bunker Lake Boulevard approximately parallel to Coon Creek to serve the Rural Reserve area. The sanitary sewer will be constructed through existing neighborhoods and along South Coon Creek Drive then north into the Rural Reserve Area. It is anticipated that the extension through the Rural Reserve may be constructed the following year, or as the market demands. 3,590,000 90,0003,500,000 Sanitary Sewer Total Storm Sewer Storm Sewer Improvements20-48300-01162,00065,00068,00070,00070,000 335,000 Storm Sewer Fund62,00065,00068,00070,00070,000335,000 Each year, areas of the City are identified where improvements are required to maintain our storm sewer system. Maintenance items include replacement of failing culverts, catch basins, and storm sewer pipes; erosion issues at storm sewer outfalls, and dredging of ponds and ditches. Replacement - Elgin Street Sweeper #16922-48300-011250,000 250,000 Equipment Bond250,000250,000 Replace unit #169, a 2000 Elgin sweeper with approximately 5,005 hours. 62,00065,000318,00070,00070,000 585,000 Storm Sewer Total Streets / Highways Annual Street Seal Coat Project20-43100-011200,000210,000220,000230,000240,000 1,100,000 Road & Bridge Funds200,000210,000220,000230,000240,0001,100,000 This project provides for a seal coat of older streets. Each year the public works and engineering department will determine what areas of the City will be seal coated the following year. Factors for consideration will be age and condition of the pavement, time since the last seal coat, and plans for future reconstruction of the roadways. As of 2015, new streets are not being seal coated due to surface stripping. Annual Street Crack Seal Project20-43100-021170,000180,000190,000200,000210,000 950,000 Construction Seal Coat Fund10,00010,00010,00010,00010,00050,000 Road & Bridge Funds160,000170,000180,000190,000200,000900,000 This project provides for crack sealing of the streets. In general , each year one of the nine full zones in the City is crack sealed. Areas nearing reconstruction, those seal coated recently to hold together, or with severe cracking are excluded from this project as determined by the Engineering and Public Works Departments. Annual Pavement Markings20-43100-03160,00062,00065,00068,00072,000 327,000 Road & Bridge Funds60,00062,00065,00068,00072,000327,000 The pavement striping for City streets is conducted one time per year. This includes centerline striping and shoulder striping. Striping enhances the safety of the roadway by directing traffic to the correct lane movement. The Federal Highway Administration is currently reviewing reflective standards for pavement markings. In the near future, the City may have to stripe twice per year to meet new standards. If this is approved, it will double the cost of pavement markings per year. Annual Curb Replacement20-43100-04156,00058,00060,00062,00065,000 301,000 Road & Bridge Funds56,00058,00060,00062,00065,000301,000 Damaged and failing concrete curb and gutter throughout the City needs to be repaired or replaced to help maintain the integrity of the roadway system. Replacing damaged or failing sections of curb and gutter helps with drainage of the roadway and prolongs the life of the street system. 191 DepartmentProject #Priority20202021202220232024 Total Municipal State Aid Routes / New & Reconstruct20-43100-051580,000510,0001,400,000630,000 3,120,000 Assessments25,00017,500187,500103,500333,500 Municipal State Aid Funds555,000492,5001,212,500526,5002,786,500 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards. 2020: Jay Street Overlay (Station Parkway to Hanson Blvd) $580,000 2022: Prairie Road Overlay (Andover Blvd to Bunker Lake Blvd) $510,000 2022: Tulip Street / 161st Avenue Recon (Round Lake Blvd to CR 20) & North portion of Tulip Street south of Valley Drive $1,400,000. 2024: Crooked Lake Boulevard Recon (Bunker to 133rd) $630,000 Annual Street Reconstruction20-43100-0611,226,0001,401,0002,575,000610,0001,581,000 7,393,000 Assessments307,000351,000644,000153,000396,0001,851,000 Road & Bridge Funds919,0001,050,0001,931,000457,0001,185,0005,542,000 The Street Reconstruction projects will consist of milling the existing street surface and constructing a new asphalt surface. Minor shouldering and restoration work will be included with the project. In developments that have existing bituminous curb or no curb or ditch, concrete curb and gutter will be constructed. 25% of the total project costs are assessed to the benefiting properties in each development. This program helps to maintain the integrity and value of the community's street infrastructure. Areas to be reconstructed are listed below. The timing of reconstruction of developments more than two years out may be revised as street conditions and ratings are reviewed on an annual basis. Additional developments may be added to the schedule or projects moved up if it is advantageous to reconstruct them in conjunction with other nearby projects. 2020 - Alladin Acres, Enchanted Drive Area 2021 - Indian Meadows 2nd Addition, Lunds Round Lake Estates, Andover West 2022 - Timber River Estates 2023 - Dehns 1st & 2nd Addition, 7th Ave Frontage Road, 2024 - Xenia Street / Vintage Street Intersection Upgrades20-43100-071285,000300,0001,800,000 2,385,000 Grant900,000900,000 Municipal State Aid Funds285,000300,000900,0001,485,000 The following are projects that are tentatively identified for improvements. Exact timing is subject to change. 2021 - Construction of a traffic signal at South Coon Creek Drive and Round Lake Blvd ($285,000) if warrants are met. 2022 - Crosstown Blvd / Crosstown Drive Intersection. Improvements could include separating the southbound right turning movement onto Crosstown Drive to improve safety ($300,000). 2023 - Nightingale Street / Crosstown Blvd Intersection ($1,800,000). The City will apply for potential grant opportunities as they arise. Gravel Road Improvements20-43100-08121,00021,00022,00023,00024,000 111,000 Road & Bridge Funds21,00021,00022,00023,00024,000111,000 Gravel roadways within the City are in need of annual improvements, including grading, adding material, and dust control. Over time and with snow plowing operations, the gravel roadway settles and additional material is needed to maintain the traveling surface. Replacement - Front End Loader #12420-43100-091275,000 275,000 Equipment Bond275,000275,000 Replace unit #124, a 1998 front end loader with 6,136 hours. Replacement - One Ton Truck w/ Plow #13320-43100-10180,000 80,000 Equipment Bond80,00080,000 192 DepartmentProject #Priority20202021202220232024 Total Replace unit #133, a 2004 Ford F450 dump truck and 9' snow plow, steel 2-3 yard tipper box and aluminum box cover (for chipping trees into it) with 54,320 miles. Street Overlays20-43100-111920,0001,200,0001,000,0001,000,0001,000,000 5,120,000 Assessments232,500300,000250,000250,000250,0001,282,500 Road & Bridge Funds687,500900,000750,000750,000750,0003,837,500 The City of Andover has implemented a street overlay program to prolong the life of the City's roadway infrastructure. This program will include an overlay of approximately 1.5" of bituminous on roadways that are indentified as still structurally sound, or have issues with wear course striping where a mill and overlay would significantly extend the roadways life cycle. The Engineering Department and Public Works will identify roads that meet these criteria one year prior to the overlay project being constructed. 2020 - Woodland Estates ($730,000) 2020 - Martin Street (Station Parkway to Bunker Lake Blvd) ($190,000) 2021-2024 Streets to be determined annually based on road condition. New - Slide-In Hotbox20-43100-12119,000 19,000 Equipment Bond19,00019,000 A self-contained asphalt hot box that slides into a 1-ton dump truck. Primarily used for winter patching, in place of cold patching with expensive bagged cold patch material. Pedestrian Crossing20-43100-13210,000200,000 210,000 Road & Bridge Funds10,000200,000210,000 Pedestrian Crossing treatment at Nightingale Street and Veterans Memorial Boulevard. New - Dump Truck w/ Snow removal21-43100-011240,000 240,000 Equipment Bond240,000240,000 Purchase an additional dump truck with snow removal equipment moving the oldest truck into a back-up position in case of breakdowns during a snow emergency. New - One Ton Truck w/ Snow removal21-43100-02170,000 70,000 Equipment Bond70,00070,000 Add an additional 3/4 truck w/ snow removal equipment. Replacement - Bobcat S185 #12021-43100-03160,000 60,000 Equipment Bond60,00060,000 Replace unit #120, a 2004 Bobcat S185 high-flow hydraulics with 1,830 hours. New - Dump truck w/ Snow removal22-43100-011240,000 240,000 Equipment Bond240,000240,000 Add a new dump truck with snow removal equipment to take the place of an older truck and keep that truck as a dedicated haul truck. Replacement - Backhoe Loader #8022-43100-021100,000 100,000 Equipment Bond100,000100,000 Replace unit #80, a 1998 John Deere 624 loader with 3,344 hours on it. Pedestrian Tunnel Under Crosstown Blvd.22-43100-031750,000 750,000 G.O. Bond750,000750,000 This would be a pedestrian underpass walkway under Crosstown to accommodate pedestrian traffic from a possible development of a parking lot or other sports fields on the north side of Crosstown Boulevard that could cross under Crosstown Boulevard to Sunshine Park Facilities or just connect to the city's trail system. Replacement - Dump Truck w/ Snow removal #20023-43100-011240,000 240,000 Equipment Bond240,000240,000 Replace unit #200, a 2000 Sterling dump truck with snow removal equipment with 74,280 miles. Replacement - Aerial bucket truck #00-13923-43100-021200,000 200,000 Equipment Bond200,000200,000 193 DepartmentProject #Priority20202021202220232024 Total Replace unit #00-139, a 2001 Ford F550 aerial bucket truck with 24,243 miles. Replacement - Dump Truck w/ Snow removal #20124-43100-011252,000 252,000 Equipment Bond252,000252,000 Replace unit #201, a 2000 Sterling dump truck with snow removal equipment with 50,908 miles. 3,617,0003,987,0006,032,0005,833,0004,074,000 23,543,000 Streets / Highways Total Water Recondition & Paint Water Tower #220-48100-011150,0001,000,000 1,150,000 Water Trunk Fund150,0001,000,0001,150,000 Recondition and paint Water Tower #2 to preserve the water system storage infrastructure. Rehabilitation of Wells21-48100-01130,00055,000 85,000 Water Fund30,00055,00085,000 The motor, pump and column pipe are taken out for inspection and worn parts are replaced. The well is televised to determine the depth and condition. If the well is at or close to the original drill depth everything is put back in place. The well may need to be cleaned out to the original depth if there is a substantial decrease in the depth. Water Main Improvements21-48100-021460,000 460,000 Assessments20,00020,000 Water Trunk Fund440,000440,000 Install water main, hydrants, and service lines to provide water service to existing areas in the City that are not currently served with City water. The following projects are proposed to be constructed along with the planned reconstruction of the streets in these areas: 2021: Water Main Loop from Crosstown Blvd at RR Tracks to Miller's Woods Development ($460,000) Water Meter Reading System AMI/AMR21-48100-0321,300,000 1,300,000 Water Fund1,300,0001,300,000 A meter reading system that will read all water meters by a Drive By Radio Read System. The Drive By System is a system where an employee drives through the water service area and gathers all the meter readings by way of a vehicle mounted computer and receiver. 150,0002,790,00055,000 2,995,000 Water Total 7,034,1128,713,0009,415,0008,864,0009,186,000 43,212,112 GRAND TOTAL 194 195 196 Note A: Note B: 197 CITY OF ANDOVER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Collected Within the Fiscal Year of Levy Total Collections to Date TotalMarket ValueCollections In TaxTaxHomesteadTotalPercentageSubsequentPercentage YearLevy*LevyCreditCollectedof LevyYearsAmountof Levy 2009$10,593,520$ 9,992,240$ 54,629*$10,046,86994.84%$ 153,703$10,200,57296.29% 201010,856,29910,125,7523,905*10,129,65793.31%183,55610,313,21395.00% 201110,856,29910,119,681853*10,120,53493.22%141,98710,262,52194.53% 201210,631,29910,460,8382,35410,463,19298.42%126,67010,589,86299.61% 201310,631,29910,535,5211,24610,536,76799.11%101,54410,638,311100.07% 201410,843,92510,776,635-10,776,63599.38%73,00010,849,635100.05% 201511,143,92511,054,157-11,054,15799.19%49,34311,103,50099.64% 201611,593,92511,525,7703,46111,529,23199.44%18,48011,547,71199.60% 201711,938,55511,858,3763,54511,861,92199.36%29,96711,891,88899.61% 201812,416,35712,342,6482,82412,345,47299.43%Not Available * Included in the total tax levy is approximately $400,000 of market value homestead credit (MVHC) that the City will not be receiving. Due to State legislative actions to deal with the State budget deficit, the MVHC program was significantly reduced for the City. CITY OF ANDOVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) TotalDelinquent CollectionsAssessments CurrentCurrentPercent ofDelinquentTotalas a Percent ofOutstandingas a Percent of AssessmentsAssessmentsAssessmentsAssessmentAssessmentCurrentDelinquentCurrent YearDue (1)CollectedCollectedCollectionsCollectionsAssessments DueAssessmentsAssessments Due 2009$ 319,448$ 332,739104.16%$ 36,693$ 369,432115.65%$ 202,99963.55% 2010325,361314,09796.54%61,247375,344115.36%218,86067.27% 2011308,794304,16498.50%5,112309,276100.16%267,01686.47% 2012348,129376,601108.18%25,087401,688115.38%237,17568.13% 2013338,411387,584114.53%168,941556,525164.45%82,82624.47% 2014326,597387,651118.69%3,788391,439119.85%215,97066.13% 2015334,054514,868154.13%4,003518,871155.33%269,75480.75% 2016267,704510,275190.61%2,153512,429191.42%268,716100.38% 2017265,163513,140193.52%212513,352193.60%272,101102.62% 2018305,249555,684182.04%412556,096182.18%283,52892.88% Note: (1) Only includes assessments certified to Anoka County. 198 CITY OF ANDOVER, MINNESOTA PRINCIPAL TAXPAYERS Current Year and Ten Years Ago (Unaudited) 20192009 NetPercentage ofNetPercentage of TaxTotal CityTaxTotal City Taxpayers CapacityRankTax CapacityCapacityRankTax Capacity Minnegasco, Inc.$317,60410.96%$137,88660.44% Connexus Energy222,89820.68%226,48810.72% Presbyterian Homes of Andover209,90430.64%164,89940.52% Walmart Real Estate Business Trust173,93840.53% Target Corporation161,82650.49%221,65620.70% Great River Energy161,20860.49%98,944100.31% Andover Limited Partnership143,25070.43%169,70630.54% Andover Station 2016 LLC123,65080.38% DST Properties LLC108,86490.33% Estates of Arbor Oaks LLC90,023100.0027 116 LLC141,96650.45% Andover Station LLC109,68070.35% BDT Holdings LLC109,41680.35% Grey Oaks Inc.100,79890.32% Rademacher Family Ltd Partnership Total$1,713,1655.20%$1,481,4394.70% Net Tax Capacity$32,975,265$31,446,280 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) Estimated Market ValuesNew Construction Commercial / IndustrialResidential Commercial / YearIndustrial (1)ResidentialTotalPermitsValuePermitsValue 2009$248,129,500$2,807,144,500$3,055,274,00011$767,43047$9,246,347 2010229,977,8002,526,288,9002,756,266,700111,247,1067114,700,800 2011199,728,2002,305,897,9002,505,626,1002411,461,4535811,803,000 2012192,112,5002,206,195,4002,398,307,900255,042,9648115,243,007 2013174,971,4002,141,898,9002,316,870,300159,249,4669820,351,892 2014166,531,5002,103,536,6002,270,068,100144,285,2815213,926,901 2015173,717,7002,435,950,5002,609,668,200162,513,6097419,631,775 2016181,926,9002,530,046,7002,711,973,600714,009,20011128,893,036 2017196,837,9002,610,055,5002,806,893,400--9427,847,717 2018207,569,2002,908,606,3003,116,175,50022,860,0006019,703,857 Note: (1) Also includes agricultural, public utility, railroad operating property, and personal property. 199 CITY OF ANDOVER, MINNESOTA DEMOGRAPHICS (Unaudited) Percent U.S. Census of Change 200020102020 Est (1)2000 - 2010 Population26,58830,59833,40015.08% Households8,2059,81111,00019.57% Household Size (Population/Household)3.243.123.04-3.76% POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) Populaton by Age (2010 U.S. Census):PersonsPercent 4 and under1,7379.2% 5 - 92,62010.6% 10 - 143,03210.4% 15 - 192,8077.6% 20 - 241,4103.7% 25 - 342,88714.5% 35 - 444,92222.0% 45 - 545,93213.1% 55 - 591,8034.1% 60 - 641,3932.0% 65 - 741,4091.7% 75 - 844540.8% 85 and over1920.3% Total population30,598100.0% Total female population15,074 Total male population15,524 2017 median age39.1 yrs City ofAnokaState of AndoverCountyMinnesota Income Statistics: 2017 per capita income$ 40,544$ 32,321$ 34,712 2017 median household income105,27076,79665,699 2017 median family income112,29589,66682,785 2017 median gross rent1,6241,034906 2017 median value owner occupied housing258,400205,000199,700 (1) Source: Metropolitan Council 200 CITY OF ANDOVER, MINNESOTA MISCELLANEOUS STATISTICAL DATA (Unaudited) Date incorporated1974 Form of governmentPlan A Miles of streets City201 County43 Storm sewer (miles)80 Water main (miles)121 Sanitary sewer (miles)100 Parks: Number68 Developed acreage630 Trails (miles)39 Acreage: Developed9,723 Undeveloped12,773 Largest Employers in the City Number of FirmType of Business / ProductEmployees ISD No 11 Anoka-HennepinElementary and secondary education928 WalmartRetail335 Fairview Andover ClinicHealthcare300 Anoka County Sheriff's OfficeCounty government and services250 Kottkes' Bus ServiceTransportation225 TargetRetail150 GAF Materials CorpRoofing materials - manufacturing150 Anoka County Highway DepartmentCounty government and services105 YMCAYouth organization and fitness center 100 Bunker Hills Regional Park / Activities CenterRegional park and recreation100 T & K Foods / Kings County MarketGrocery store80 201 GLOSSARY OF TERMS ACCOUNTING SYSTEM:The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING:The method of accounting under which revenues are recorded when they are earned (whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). ACTIVITY:A cost center for recording charges for services delivered or functions performed. Each activity has an assigned manager who is responsible for planning and conducting the various approved objectives or workloads. AMORTIZATION:(1) The portion of the cost of a limited-life or tangible asset charged as an expense during a particular period. (2) The reduction of a debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION:An authorization madeby the legislative body of a government that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ASSESSED VALUATION:A valuation set upon real estate or other property by a government as a basis for levying taxes. ASSESSMENT:(1) The process of making the official valuation of property for taxation. (2) The valuation placed upon property as a result of thisprocess. ASSETS:Property owned by a government that has a monetary value. BALANCED BUDGET: When revenues and other financing sources equal expenditures/expenses and other financing uses. BOND:A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt. BUDGET:A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. 202 BUDGET DOCUMENT:The official written statement prepared by the budget office and supporting staff that presents the proposed budget to the legislative body. BUDGET MESSAGE:A general discussion of the proposed budget presented in writing as a part of or supplement to the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the chief executive and budget officer. CAPITAL ASSETS:Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. CAPITAL IMPROVEMENTS BUDGET:A plan of proposed capital expenditures and the means of financing them. The capital budget is usually enacted as part of the complete annual budget, which includes capital outlays. The capital budget normally is based on a capital improvement plan (CIP). DELINQUENT TAXES:Taxes that remain unpaid on and after the date on which a penalty for non-payment is attached. DIVISION:An organizational unit within a department for purposes of administration and cost accounting. EMS:Emergency Medical Services ENTERPRISE FUND:(1) A fund established to account for operations financed and operated in a manner similar to private business enterprises. In this case, the governing body intends that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. EXPENDITURES:Where accounts are kept on the accrual or modified basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purchases are made. FINES & FORFEITS:A sum of money imposed or surrendered as a penalty. FISCAL DISPARITIES:A distribution of 40% of the growth in commercial and industrial properties within the seven-county metropolitan area since 1971. FISCAL YEAR:A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. FULL FAITH AND CREDIT:A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds). 203 FUND:An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: sometimes called a deficit. GENERAL FUND:The fund used to account for all financialresources, except those required to be accounted for in another fund. GENERAL OBLIGATION BONDS:When a government pledges its full faith and credit to the repayment of the bonds it issues, those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds that are to be repaid from taxes and other general revenues. GENERAL OBLIGATION REVENUE BONDS:Intended to be paid first from the revenues of the enterprise fund. They are backed by the full faith, credit and taxing power of the City. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the GAAP. G.I.S.:Geographic Information System GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB):The authoritative accounting and financial reporting standard- setting body for government entities. GOVERNMENTAL FUNDS:Funds used to account for the acquisition, use and balance of expendable financial resources and the related current liabilities-except those accounted for in proprietary funds and fiduciary funds. Under current GAAP, there are four governmental fund types: general, special revenue, debt service and capital projects. GPS: Global Positioning System GRANT:A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the state and federal governments. Grants are usually made for specified purposes. 204 HIGHWAY MAINTENANCE:An intergovernmental revenue from the State to be used for maintenance of the municipal state aid street system. The money comes from the state gasoline tax and fees from motor vehicle registration. HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA):A property tax relief program that replaced the former homestead credit program and the agricultural credit program. HACA is tied to class rate reductions for certain classes of property. HRA:Housing and Redevelopment Authority. The HRA may buy, own and sell land for housing and economic development purposes and engage in other housing and redevelopment activities consistent with MN law. INFRASTRUCTURE:The basic facilities, equipment, services and installations needed for the growth and functioning of a community. Includes roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. INTERGOVERNMENTAL REVENUES:Revenues from other governments in the form of grants, entities, shared revenues or payments in lieu of taxes. INTERNAL SERVICE FUND:A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost reimbursement basis. LEGAL DEBT LIMIT:The maximum amount of outstanding gross or net debt legally permitted. LEGAL DEBT MARGIN:The legal debt limit less outstanding debt subject to limitation. LEGISLATIVE:Having the power to create laws. LEVY:(1) (Verb) To impose taxes, special assessments or service charges for the support of government activities. (2) (Noun) The total amount of taxes, special assessments or service charges imposed by a government. LOCAL GOVERNMENT AID (LGA):A state government revenue sharing program for cities and townships that is intended to provide an alternative to the property tax. LGA is distributed through a formula based on tax base, population, population decline, age of housing and the percent of market value classified as commercial or industrial. LOCAL PERFORMANCE AID (LPA):A state program for cities and counties that is intended to provide an incentive for local governments to develop performance measurement systems. MARKET VALUE:An assessor's estimate of what property would be worth on the open market if sold. The market value is set on January 2 of the year before taxes are payable. 205 MARKET VALUE HOMESTEAD CREDIT (MVHC): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxesby providing a credit or reduction on the amount of property taxes. MARKET VALUE HOMESTEAD EXCLUSION (MVHE): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxesby excluding a portion of property value from taxation. MODIFIED ACCRUAL BASIS:The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. MATURITIES:The dates on which the principal or stated value of investments or debt obligations mature and may be reclaimed. OBJECT OF EXPENDITURE:Expenditure classification based upon the types or categories of goods and services purchased. Typical objects of expenditure include: -personal services (salaries and wages); -charges and services (utilities, maintenance contracts, travel); -supplies and materials; and, -capital outlay. OBJECTIVE:Serving as a goal; being the object of a course of action. OPERATING BUDGET:A plan of financial operation embodying an estimate of proposed expenditures for the calendar year and the proposed means of financing them (revenue estimates). OPERATING EXPENSES:Proprietary fund expenses related directly to the fund's primary activities. OPERATINGTRANSFER:Routine and/or recurring transfers of assets between funds. ORDINANCE:A formal legislative enactment by the government body of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies. OTHER CHARGES:A level of budgetary appropriations, which includes expenses for outside professional services, advertising, insurance, utility costs, repairs maintenance and miscellaneous costs. PERA:Public Employees Retirement Association PERFORMANCE MEASURES:A quantitative or qualitative measurement of activity. 206 PERSONAL SERVICES:A level of budgetary appropriations, which includes expenses for salaries, wages, and related employee benefits such as the City's share of retirement and insurance. POLICE DEPARTMENT AID:An intergovernmental revenue from the State to be used to maintain the Police Department. A premium tax of two percent is imposed on automobile insurance and apportioned to qualifying cities. POLICY:A set of guidelines used for making decisions. PRE-EMPTIVE DEVICES:Radio frequency controlled traffic light on emergency vehicles. PROGRAM:Group activities, operations or organizational units directed to attaining specific purposes or objectives. PROPRIETARY FUNDS:Account for government's ongoing organizations and activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses and transfers relating to the government's business and quasi- business activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination on net income, financial position and changes in financial position. Includes enterprise and internal service funds. RESERVES:Assets kept back or saved for future use or special purpose. RESIDUAL EQUITY TRANSFER:Non-recurring or non-routine transfers of assets between funds. RETAINED EARNINGS:An equity account reflecting the accumulated earnings of the government's proprietary funds (those funds where service charges will recover costs ofproviding those services). REVENUE:The term designates an increase to a fund's assets which: -does not increase a liability (e.g., proceeds from a loan); -does not represent a repayment of an expenditure already made; -does not represent a cancellation of certain liabilities; and -does not represent an increase in contributed capital. REVENUE ESTIMATE:A formal estimate of how much revenue will be earned from a specific revenue source for some future period; typically, a future fiscal year. SPECIAL ASSESSMENT:A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. 207 SPECIAL REVENUE FUND:A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. SUPPLIES:A level of budgetary appropriations, which includes expenses for commodities that are used suchas office supplies, operating supplies, repair and maintenance supplies. TAX CAPACITY:A valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. The assessor determines the estimated market (resale) value of the property. This value is converted to tax capacity by a formula specified in state law. TAX CAPACITY RATE:The property tax rate that is based on the taxes levied as a proportion of the property value. A tax rate of 18.751% produces $18.75 of taxes on each $100 of tax capacity that a property is valued at. TAX LEVY:The total amount to be raised by general property taxes for the purposes stated in the resolution certified to the County Auditor. TAXES:Compulsory charges levied by a government to finance services performed for the common benefit. TRUTH IN TAXATION:The "taxation and notification law" which requires local governments to set estimated levies, inform taxpayers about the impacts, and hold a separate hearing to take taxpayer input. VARIANCE:A relaxation of the terms of the zoning ordinance where such variance will not be contrary to the public interest and where, owing to conditions peculiar to the property and not the result of the actions of the applicant, a literal enforcement of the ordinance would result in unnecessary and undue hardship. WORKING CAPITAL: Current assets minus current liabilities. WORKLOADS:A measure of the services provided. 208