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Home My WebLink AboutBudget - 20221685 Ciross'Towin IIIMIvd IINW, Andover, MN 55304 P'llhoine: (763) 755 5100 * IF:ax.: (763) 755 8923 www.aiii,doveiirii,-niii.gov GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Andover Minnesota For the Fiscal Year Beginning January 01, 2021 f Executive Director Click on Page Number CITY OF ANDOVER 2022 Annual Operating Budget Table of Contents Introduction Public Official Listing.................................................................................... I Organizational Chart....................................................................................... 2 BudgetMessage.............................................................................................. 3 City Council Resolution Adopting Budget ..................................................... 27 Valuesand Goals............................................................................................ 30 Budget Development Process......................................................................... 31 2022 Budget Development Calendar.............................................................. 32 Accounting, Auditing and Financial Reporting Policy ................................... 33 Operating Budget Policy................................................................................. 34 RevenuePolicy............................................................................................... 36 Capital Improvement Policy........................................................................... 36 Debt Administration....................................................................................... 37 InvestmentPolicy........................................................................................... 38 Revenue Projections....................................................................................... 41 2022 Budget Summary by Fund Type............................................................ 46 2022 Budget Summary — Revenues and Expenditures Fund Summary.......... 47 2022 Budget Summary — Revenues and Expenditures All Funds .................. 48 2022 Budget Summary — Revenues and Expenditures by Fund Type ............ 49 Revenue Comparison — General Fund............................................................ 50 Expenditure Comparison — General Fund_ ...................................................... 51 Expenditure Budget Summary — By Department — General Fund .................. 52 Five Year Financial Projections — General Fund ............................................ 53 2022 FTE Summary........................................................................................ 54 2022 Capital Improvement Budget................................................................. 55 General Fund Definition........................................................................................................ 57 Statement of Revenues, Expenditures and Changes in Fund Balance ............ 59 Mayor& Council............................................................................................ 60 Administration................................................................................................ 61 Newsletter....................................................................................................... 62 Human Resources........................................................................................... 63 Attorney.......................................................................................................... 64 CityClerk....................................................................................................... 65 Elections......................................................................................................... 66 Financial Administration................................................................................ 67 Assessing........................................................................................................ 68 InformationSystems....................................................................................... 69 Planningand Zoning....................................................................................... 70 General Fund (Continued) Engineering..................................................................................................... 71 Facilities Management.................................................................................... 72 PoliceProtection............................................................................................. 73 FireProtection................................................................................................ 74 ProtectiveInspection...................................................................................... 75 Emergency Management................................................................................ 76 AnimalControl............................................................................................... 77 Streets& Highways........................................................................................ 78 Snow& Ice..................................................................................................... 79 StreetSigns..................................................................................................... 80 TrafficSignals................................................................................................ 81 StreetLighting................................................................................................ 82 Street Lights Billed......................................................................................... 83 Parks & Recreation......................................................................................... 84 Natural Resource Preservation........................................................................ 85 Recycling........................................................................................................ 86 Unallocated..................................................................................................... 87 Special Revenue Funds Definition........................................................................................................ 89 Statement of Revenues, Expenditures and Changes in Fund Balance — All Special Revenue Funds............................................................................ 91 Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 92 FundOverview........................................................................................ 93 Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 94 FundOverview........................................................................................ 95 Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 96 FundOverview........................................................................................ 97 Drainage and Mapping Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 98 FundOverview........................................................................................ 99 Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 100 FundOverview........................................................................................ 101 Click on Page Number CITY OF ANDOVER 2022 Annual Operating Budget Table of Contents Special Revenue Funds (Continued) Forestry Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 102 FundOverview........................................................................................ 103 Right of Way Management / Utility Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 104 FundOverview........................................................................................ 105 Charitable Gambling Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 106 FundOverview........................................................................................ 107 Construction Seal Coating Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 108 FundOverview........................................................................................ 109 CARES Act / ARPA Funding Statement of Revenues, Expenditures and Changes in Fund Balance ..... 110 FundOverview........................................................................................ III Debt Service Funds Definition........................................................................................................ 113 Statement of Revenues, Expenditures and Changes in Fund Balance — All DebtService Funds.................................................................................. 115 Certificates / Capital Notes — 2014A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 116 FundOverview........................................................................................ 117 Certificates / Capital Notes — 2016A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 118 FundOverview........................................................................................ 119 Certificates / Capital Notes — 2020A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 120 FundOverview........................................................................................ 121 Certificates / Capital Notes — 2021 A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance ..... 122 FundOverview........................................................................................ 123 General Obligation Bonds — 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 124 FundOverview........................................................................................ 125 General Obligation Bonds — 2012C G.O. Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 126 FundOverview........................................................................................ 127 Debt Service Funds (Continued) General Obligation Bonds — 2019A G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 128 FundOverview........................................................................................ 129 General Obligation Bonds — 2021A G.O. Street Reconstruction Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 130 FundOverview........................................................................................ 131 General Obligation Bonds — 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 132 FundOverview........................................................................................ 133 Capital Projects Funds Definition........................................................................................................ 135 Statement of Revenues, Expenditures and Changes in Fund Balance — All Capital Projects Funds............................................................................. 137 Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 138 FundOverview........................................................................................ 139 Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance..... 140 FundOverview........................................................................................ 141 Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 142 FundOverview........................................................................................ 143 Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance ..... 144 FundOverview........................................................................................ 145 Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 146 FundOverview........................................................................................ 147 Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance ..... 148 FundOverview........................................................................................ 149 Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance ..... 150 FundOverview........................................................................................ 151 2020A G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance ..... 152 FundOverview........................................................................................ 153 Click on Page Number CITY OF ANDOVER 2022 Annual Operating Budget Table of Contents Capital Projects Funds (Continued) 2021A G.O. Equipment Certificates Statement of Revenues, Expenditures and Changes in Fund Balance ..... 154 FundOverview........................................................................................ 155 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 156 FundOverview........................................................................................ 157 2019 G.O Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 158 FundOverview........................................................................................ 159 Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance ..... 160 FundOverview........................................................................................ 161 Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance ..... 162 FundOverview........................................................................................ 163 2021A G.O Street Reconstruction Bonds Statement of Revenues, Expenditures and Changes in Fund Balance ..... 164 FundOverview........................................................................................ 165 Enterprise Funds Definition........................................................................................................ 167 Statement of Revenues, Expenditures and Changes in Retained Earnings — All Enterprise Funds................................................................................ 169 Water Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 170 FundOverview........................................................................................ 171 Sanitary Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 172 FundOverview........................................................................................ 173 Storm Sewer Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 174 FundOverview........................................................................................ 175 Internal Service Fund Definition........................................................................................................ 177 Statement of Revenues, Expenditures and Changes in Fund Balance — All Internal Service Funds............................................................................. 179 Central Equipment Maintenance Fund Statement of Revenues, Expenditures and Changes in Fund Balance ..... 180 FundOverview........................................................................................ 181 Internal Service Fund (Continued) Risk Management Statement of Revenues, Expenditures and Changes in Fund Balance ..... 182 FundOverview........................................................................................ 183 Appendix Budget Year 2022 — Operating Transfers....................................................... 185 2022 — 2026 Capital Improvement Plan Development Calendar .................... 186 Capital Improvements Plan 2022-2026.......................................................... 187 Summary of Outstanding Bond Issues............................................................ 201 Future Debt Service Requirements................................................................. 202 Computation of Legal Debt Margin................................................................ 203 Property Tax Levies and Collections.............................................................. 204 Special Assessment Levies and Collections................................................... 204 PrincipalTaxpayers........................................................................................ 205 Building Permits, Property Values and Households ....................................... 205 Demographics................................................................................................. 206 Miscellaneous Statistical Data........................................................................ 207 Glossaryof Terms........................................................................................... 208 This page left blank intentionally. CITY OF ANDOVER Adopted 2022 City Budget Sheri Bukkila Mavor Jamie Barthel Councilmember Ted Butler Councilmember Valerie Holthus Councilmember Randy Nelson Councilmember James Dickinson City Administrator / City Clerk Joe Janish Communitv Development Director David Berkowitz Director of Public Works / City Engineer Joe Heidelberger Building Official Dennis Jones Fire Chief Administration Building Inspections Administrative Emergency Services Management Human Resources LIF Protective Inspections Newsletter Economic Development Authority Community Center Charitable Gambling Recycling I nformation Systems CITY OF ANDOVER 2022 Organizational Chart Residents Cily Council atyAttomey City Administrator Advisory Boards City Clerk Engineering Finance Fire Protection Planning Public Works Police Protection Clerks Office Engineering Financial Fire Protection Planning &Zoning Streets/Fighways Services Administration Services Elections Right -of -Way Assessing CDBG Snow&Ice Management Removal Animal Control Drainage & Facilities Street Lighting Mapping Management Lower Ram River Unallocated Signage Watershed Mgmt ] I Organization Forestry Capital Equipment Traffic Signals Reserve Trail & Debt Service Funds Parks & Recreation Transportation Construction Tax Incrernent Water Seal Coating Projects WaterTru� Building Fund wee Storm Sewer Sewer Trunk Road & Bridge Park Dedication Projects Permanent Improvement Revolving G.O. Capital Notes Risk Management Central Equipment Natural Resources Preservation 0 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 2022 City Budget DATE: December 7, 2021 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, 2021. In response to these requirements, a proposed budget was presented to Council on September 7, 2021 in advance of this deadline. Council held budget -planning sessions on March 23, May 25, June 22, and August 24 to discuss budget priorities and adopted the preliminary 2022 City Levy on September 7, 2021. Additional budget discussion was held with the Council on September 28, October 26, and November 23 before the public hearing that was held on December 7, 2021. The Council's final action on adopting the 2022 City Budget and 2022 Levy occurred on December 7, 2021. The official adoption of the 2022 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 28, 2021. 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 the City's plans, policies, procedures and objectives regarding services to be provided in 2022. As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of their specific service needs, prioritized spending requests to achieve the most effective operational delivery of services, and then balanced the allocation of the City's human and financial resources against those needs. It has been our goal to accomplish this in a fair, impartial and balanced manner that meets with the approval of Council and the residents we serve. Mayor, Councilmembers, Residents 2022 Adopted City Budget GENERAL INFORMATION The city we know today as Andover was first organized in 1857 under the name "Round Lake Township." However, in 1860 the name was changed to "Grow Township" in honor of Congressman Galusha A. Grow of Pennsylvania. Congressman Grow spoke at a political campaign in Anoka that year, and the town name was changed to reflect Congressman Grow because of his strong advocacy of the Union cause. At that time, the population was 330 and included the geographical area we know today as Ham Lake. In fact, the area of Ham Lake was considered a part of Grow Township until 1871. In 1972, the Grow Township Board of Supervisors recognized that the town was growing at a very rapid rate. They felt a village form of government would provide better services to the community. Board supervisors then voted in favor of proceeding with the incorporation process. The board voted to submit a new name for the village. "Andover Village" was chosen because the name Andover had historical interest. The historical interest, we believe, came from the Andover train station. You may have heard the popular "train myth" about how Andover received its name. The myth states that a train tipped over in a swamp, and an eyewitness, relaying the incident, said it "went over and over," thereby naming the city "Andover." However, research reveals that the name Andover first appeared in an article dated March 14, 1899 in the Anoka County Union Newspaper - before train tracks were ever built in the city. The article stated that the Eastern Minnesota line of the Great Northern Railway was in the process of constructing railroad tracks from the Coon Creek Cut-off to the North. The railway announced that new railroad stations with mathematical precision were to be located five miles apart from each other. The new stations (from Coon Creek to the North, along the new railroad line) were to be named Andover, Cedar, Bethel, Isanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4, 1899, the first train passed through the Andover station. Where the railway came up with the name Andover remains unknown. Andover Village was established in 1972 and then became the City of Andover, a city of the fourth class, in 1974. Today the City of Andover's population exceeds 20,000, classifying it as a second-class city. BUDGET GUIDELINES The following arc City Council's 2022 Budget Development guidelines established by the City Council on May 4, 2021, used by City Staff while preparing their proposed operating budgets, and presented with a brief description of the outcome of each guideline as part of the budget process: 4 Mayor, Councilmembers, Residents 2022 Adopted City Budget 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness e using sustainable revenue sources and operational efficiencies. Note: The Anoka County Assessor taxable market value figures for the City of Andover are reflecting a 7.47% increase in total taxable market value. The 2022 Property Tax Levy that was approved estimates increasing the current City tax rate by 1.15%. 2) A fiscal goal that works toward establishing the General Fund working capital fund balance at no less than 45% of planned 2022 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management and information technology) through targeting revenue enhancements or expenditure limitations in the 2021 adopted General Fund budget. Note: With property tax revenues making up close to 80% of the total General Fund revenues, cash flow designations approaching 50% would be appropriate and are recommended by the City's auditor. The 2022 budget exceeds this guideline, also emergency fund balances (approximately 3% ofplanned General Fund expenditures) are in place to stabilize a situation and not be a complete solution. 3) A commitment to limit the 2022 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The adopted 2022 debt levy was 23.29% of the gross tax levy while accommodating the additional long-term debt for the 2021A GO Street Reconstruction and Equipment Bonds issued 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 on a cost benefit analysis rather than a year -based replacement schedule. Note: The City Vehicle Purchasing Committee performed this analysis and has made recommendations to the City Council as part of the 2022 — 2026 Capital Improvement Plan (CIP) that was adopted at the October 19, 2021 City Council meeting. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short- term fiscal targets are in line with long-term fiscal projections. Note: The City continually maintains various financial models to determine the long-term impacts ofpresent-day expenditures and financing decisions. Fiscal assumptions are based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending, fund balance reserves and debt ratios. Mayor, Councilmembers, Residents 2022 Adopted City Budget 6) Continued commitment to strategic planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and facility needs. Note: A Council Community Vision and Organizational Goals and Values document was adopted by the City Council at the December 3, 2019 City Council meeting. Direction provided in that document will continue to be integrated into various department work plans and budgets. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns and demands, and to do so in a cost-effective manner. Note: Management paid special attention to fiscal values, commercial & residential development/redevelopment, collaboration opportunities, service delivery and the livability/image of the community. SIGNIFICANT EVENTS OF THE CURRENT YEAR Andover was one of the fastest growing cities in terms of population growth in the Twin Cities metropolitan area between 2000 through 2006. Since 2006, the pace of residential development has slowed and is attributable to regional and national economic factors. The City has taken a revised outlook on where growth is most likely to occur in contrast to previously determined urban services staging areas. This has required the City to identify alternate locations for sewer supported growth. In 2021, the City issued 140 new single-family building permits with a total valuation of $43,949,250 compared to 139 new single-family building permits with a total valuation of $45,464,138 the prior year. More detailed information is available on City growth later in this budget message. Some additional noteworthy events/activities that occurred in 2021 include: 1) New residential Final Plat approvals included 91 urban lots within Andover Village, Meadows of Nightingale, and Oakview Acres. A final plat for Fields at Winslow Cove phase 1 was submitted but not approved in 2021 for 66 urban lots. A preliminary plat for Fields at Winslow Cove was approved that will provide 383 urban lots. The City currently has a supply of 147 urban lots and 21 rural lots (which includes the lots above). 2) In 2021, the City saw commercial, industrial and institutional construction throughout the community totaling close to $3.4 million in valuation. Many businesses came to Andover that did extensive tenant finishes, upgrades or remodels in existing multi -tenant buildings, Mayor, Councilmembers, Residents 2022 Adopted City Budget including as follows: Minty Nails, Tasty Taco, Arbor Oaks, Lil'Explorers, Crooked Lake Elementary, Walmart, Edina Realty, T-Mobile, Target and Meadow Creek Church. 3) In 2021, Legacy Christian Academy, a K-12 private school, completed their school 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 is receiving close to $30 million in additions totaling 67,000 square feet and other improvements adding another 5,700 square feet of space in the school. Phase 1 of the additions and remodeling started in 2018 and was completed in 2019. Part of the project is 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 was completed in 2021 bringing the school's capacity to 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 2019 with a $10.5 million budget, construction was completed Summer of 2020. The Community Center Expansion design continued throughout 2018, the project (a new sports complex with elevated walking track, additional fieldhouse court, team training space, youth center, remodeled Community Rooms, added meeting spaces and expanded parking) was out for bid in early 2019 and a bid awarded for construction in late Spring 2019 with a $17.9 million budget, construction was completed Fall of 2020 and first full year of operation in 2021. 6) Andover residents continue to have one of the highest recycling rates per person for all recyclable materials in Anoka County. In 2014, the City added a new Recycling Center to expand the current recycling opportunities for Andover residents. In 2021, the City continued to host monthly recycling events (on weekends), generally with a specific focus, such as paper shredding and appliance or electronics collection. 7) 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. As part of the 2020 Budget Development process the Council participated in a new strategic planning process updating the Council Community Vision and Organization Goals and Values document. For the 2022 Budget development process that document was integrated into various department work plans and budgets. Mayor, Councilmembers, Residents 2022 Adopted City Budget 8) The City's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2020 was awarded the Government Finance Officers Association's "Excellence in Financial Reporting Award." The City completes this document internally and recognized significant cost savings in the form of reduced financial consulting fees. This is the nineteenth consecutive year receiving the award and it is anticipated that the City's CAFR for the year ended December 31, 2021 will also achieve this award. 9) For the twentieth year in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2021 Annual Budget. This award recognizes excellence in the preparation of the City's budget document as a policy document, an operations guide, as a financial plan and as a communications device. 10) Ongoing implementation of a single-family rental housing license program to provide property owners/landlords with educational materials and checklists on how to inspect and maintain the exterior of the property, a list of potential ordinance violations that may occur with a rental property, and an exterior inspection of the building and grounds with city staff. This program was authorized by the Andover City Council in 2009 and is reviewed annually, there were close to 280 single family rental licenses issued throughout the City in 2021. 11) The City continues to make significant progress on the process of digitally imaging documents retained, this includes standard and legal documents and large construction plan documents. The imaging project has helped the City reduce staffing through data storage retrieval efficiencies, eliminated the need for office expansion and has expedited City research projects. 12) The City continues to utilize updates to our financial management software to improve reporting and operating efficiencies. These updates continue to yield reduced personnel costs and more timely reports. In 2021, the City saw increased growth in the number of online and counter credit card payments for various City permits and services. Approximately 60% of the Building Department's permits were done online. OVERVIEW The Adopted 2022 Budget anticipates General Fund revenues in the amount of $12,699,145 to meet anticipated budgeted expenditures in the amount of $13,382,093, thus a decrease in (use of) fund balance is planned. As a result, total General Fund balance reserves are projected to decrease to 61.1% in 2022 as compared to 66.1% in 2021 in conjunction with corresponding expenditures for those years. The Adopted 2022 General Fund Budget represents an increase in expenditures of $779,957 over last year. Designated capital operating levies increased $94,245 in 2022 bringing the balance to $2,202,822. The 2022 Debt Service Levy ($3,751,062) includes two equipment notes, two abatement bonds, capital I. Mayor, Councilmembers, Residents 2022 Adopted City Budget improvement plan bonds and street reconstruction bonds; and increases the City debt ratio to gross City levy to 23.29% from 21.01% for the prior year. The increase in General Fund expenditures is primarily related to personnel costs. Cost of living adjustments and health insurance continue to be a contributing factor. Adopted 2022 Budget also includes an enhanced duty crew model to help meet acceptable response times to emergencies within the city. In the past several year's budgets, the City has dealt with significant state aid cuts in Market Value Homestead Credit (MVHC) and Local Government Aid (LGA), tight levy limits enacted by the State Legislature that have prevented Andover from capturing any additional tax revenue from the City's previously expanding tax base. The availability of additional tax levy in 2013 was significantly limited by the new market value exclusion program and decreasing taxable market values, but the decertification of a tax increment financing district negated those decreases to a net overall increase of .41 %. While these limitations have expired, the potential exists for future legislation to limit the ability of local governments to levy property taxes. In 2014, LGA was reinstated for the City and that funding ($73,490) was used to help offset the growing needs of the Road and Bridge Capital Projects Fund for street improvements/replacements. In 2015, the City received zero LGA funding; in 2016, the City received $2,698; in 2017, 2018, 2019, 2020 and 2021, the City received zero LGA funding; and as notified by the State, the City will be receiving zero in 2022. General Fund expenditure trends since 2016 are as follows: Expenditures Expenditures Before Transfers Population Per Capita % Change 2016 Actual $ 10,259,726 n/a 32,473 $ 315.95 2017 Actual $ 10,289,975 0.29% 32,831 $ 313.42 2018 Actual $ 10,875,244 5.69% 33,096 $ 328.60 2019 Actual $ 11,100,098 2.07% 33,197 $ 334.37 2020 Actual $ 11,395,878 2.66% 33,448 $ 340.70 2021 Estimate $ 12,652,443 11.03% 33,650 $ 376.00 2022 Adopted $ 13,232,093 4.58% 33,850 $ 390.90 Note: The population figures were estimates by Met Council. 9 Mayor, Councilmembers, Residents 2022 Adopted City Budget The 2022 Adopted Budget provides for an adopted tax capacity rate of 35.993%, which compares to 35.574% for 2021 (this rate comparison excludes the open space and watershed levies). The 2022 increasing tax capacity rate is reflective of an increase in the adopted tax levy minimized by the growth in the tax capacity values. Tax Capacity Values Tax Capacity Rates % Change % Change 2016 $ 26,847,273 n/a 38.314% n/a 2017 $ 27,920,178 4.00% 37.374% -2.45% 2018 $ 31,287,043 12.06% 34.627% -7.35% 2019 $ 32,975,265 5.40% 35.310% 1.97% 2020 $ 36,099,539 9.47% 35.656% 0.98% 2021 $ 37,366,775 3.51% 35.574% -0.23% 2022 $ 40,210,548 7.61% 35.993% 1.18% 45.0% Tax Capacity Rates 40.0% 35.0% 30.0% 2016 2017 2018 2019 2020 2021 2022 Note: The tax capacity rates do not include the open space and watershed levies. Some highlights of the Adopted 2022 Budget are as follows: Capital Projects Levy — The 2022 Budget specifically designates $2,162,822 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($275,000), Facility Maintenance Reserve ($355,000), Road and Bridge ($1,409,579), Pedestrian Trail Maintenance ($108,243) and Park Projects ($15,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases/decreases; with Capital Outlay, Pedestrian Trail Maintenance and Park Levies changed according to the City Council budget guidelines. Road and Bridge — Under the Capital Projects Levy, a total of $1,517,822 is for transportation programming related to maintaining City streets, roadways and pedestrian trails. Approximately 7.13% ($108,243) of this levy is dedicated towards pedestrian trail maintenance. $327,840 is designated to the City's seal coating and crack sealing programs, with the remaining $1,081,739 dedicated to street overlays pursuant to previous Council direction of designating a one percent tax levy and capturing two percent of new tax capacity growth to transportation infrastructure needs. This commitment was initiated by the City Council in 1997 and increased from one percent to two percent of new tax capacity growth during 2006. As a percentage, this funding commitment represents approximately 9.42% of the Gross Tax Levy and increased $69,245 as compared to the 2021 levy. im Mayor, Councilmembers, Residents 2022 Adopted City Budget Park Improvements— Under the Capital Projects Levy, $15,000 is designated for miscellaneous park related capital projects that come up throughout the year. The 2022 levy remains the same as the 2021 levy. Capital Equipment/Projects — Under the Capital Projects Levy, 275,000 is designated to underwrite a wide range of capital improvement/equipment project expenditures. Through the annual $275,000 designation, the City, over time, will be able to build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs under a more controlled spending environment. This designated levy is to address a wide range of facility maintenance and equipment needs. The 2019 levy decreased $525,000 as compared to the 2018 levy. 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 Reserve — Under 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 2018 and remains unchanged ($355,000) as compared to 2021. Sheriff's Police Contract Services — The Anoka County Sheriff's contract reflects a 1.53% general increase ($50,440). The 2022 Budget maintains the existing 80 hours per day of patrol service, six hours per day of service provided by a Community Service Officer, two Patrol Investigators, School Liaison Officers in the middle and high school, and 50% of a Crime Watch Coordinator's position. Attorney -The City Attorney budget reflects a 2.50% general increase ($5,100) over the 2021 budget. Council Memberships and Contributions — The following are included as part of the 2022 General Fund budget: ■ North Metro Mayors Association ■ Metro Cities ■ Mediation Services ■ YMCA — Water Safety Program ■ Alexandra House ■ Youth First (Program Funding) ■ NW Anoka County Community Consortium - JPA ■ Teen Center Funding (YMCA) ■ Lee Carlson Central Center for Family Resources ■ Andover Senior Center $14,405 - membership $ 9,569 - membership $ 3,816 - program contribution $ 9,000 - program contribution (youth services) $15,328 - program contribution (domestic abuse programs) $12,000 - program contribution (youth services) $10,000 - program contribution (youth services) $ 8,100 - program contribution (youth services) $ 1,500 - program contribution (mental health services) $ 21,500 - program contribution (senior services) it Mayor, Councilmembers, Residents 2022 Adopted City Budget The following memberships/contributions are included as part of the 2022 budget in other funds: ■ Youth First — City Partner Fee $ 3,000 Charitable Gambling Fund ■ Teen Center Funding (YMCA) $17,900 Charitable Gambling Fund ■ Alexandra House $ 5,600 Charitable Gambling Fund ■ Senior High Parties $ 1,000 Charitable Gambling Fund ■ Family of Promise $ 3,000 Charitable Gambling Fund ■ Stepping Stone $ 1,000 Charitable Gambling Fund ■ Hope for Youth $ 1,000 Charitable Gambling Fund - program contribution (youth services) - program contribution (youth services) - program contribution (domestic abuse programs) - donation (youth programs) - program contribution (homelessness programs) - program contribution (homelessness programs) - program contribution (homelessness programs) ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost Reallocation — The 2022 Budget does include funding for one new full-time staff member and/or additional funding to expand the duty crew in the Fire Department. This Assistant Fire Chief position would be contemplated with the enhancement of the Fire duty crew model. Cost -of -Living Adjustments — The total compensation package for 2022 includes step changes for eligible employees and a 2.75% cost of living adjustment. Administration and Human Resources continually review position -based salaries in detail to confirm competitiveness with other government entities. For a few positions to remain competitive with other governmental entities, budget has been included for salary adjustments in 2022. The current Public Works Union contract expires December 31, 2023 and the negotiated wage increase (2.75%) for 2022 is included. Health Insurance Costs — Premiums for health insurance increased 4.5% in 2022. 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 15th year 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) to "buy down" the premium and continues to do so. CITY GROWTH New institutional/commercial/industrial businesses moved to Andover in 2021. These business' included Passageway Financial/Accounting Tax and Advisory; Therapy Associates; Minty Nails; Edina Realty; Lil Explorers Child Care; Farmers Insurance (Jennifer Danielson Agency). Andover High School completed their phase 2 additions and remodeling. Phase 2 included an additional gymnasium, and fitness spaces. 12 Mayor, Councilmembers, Residents 2022 Adopted City Budget The Andover Community Center expansion was completed. The new sports complex included an additional sheet of ice convertible to turf, team rooms, dryland training space, meeting space, restrooms, skate rental/pro shop and a walking/jogging track. The overall expansion project also included an additional field house court, oversized gathering area (crash space), multipurpose rooms for teens and seniors, office space and community meeting rooms. Several other improvements occurred throughout the facility which included repairing concrete and installing new rubberized sports court flooring to field house courts 1,2 and 3; upgrading the existing ice arena's refrigeration system and transforming existing Community Meeting Rooms into a Senior/Multipurpose space. New residential Final Plat approvals included 91 urban lots within Andover Village, Meadows of Nightingale, and Oakview Acres. A final plat for Fields at Winslow Cove phase 1 was submitted but not approved in 2021 for 66 urban lots. A preliminary plat for Fields at Winslow Cove was approved that will provide 383 urban lots. The City currently has a supply of 147 urban lots and 21 rural lots (which includes the Final Plat lots above). In 2021, the City issued 140 new single-family building permits with a total valuation of $43,949,250 compared to 139 new single-family building permits with a total valuation of $45,464,138 for the preceding year. The City has not issued any new multi -family dwelling permits in last seven years. It is anticipated that residential development will continue to rebound and drive the City's customer base. The 2020 census shows the population at 33,448. The growth within the last several years continues to produce a profound increase in demand for City services and has significantly added to the City's infrastructure and staffing needs. Consequently, this change will result in significant future operational and maintenance costs. The chart below illustrates the significant growth that has occurred since 1995. Growth Factors 1995 2021 Estimate % Change Population 20,497 33,650 64 Housing Units 6,300 11,400 81 Streets (miles) 150 205 37 Cul-de-sacs 155 363 134 Storm Sewer (miles) 18 84.7 371 Water Main (miles) 35 123 251 Sanitary Sewer (miles) 53 102.8 94 13 Mayor, Councilmembers, Residents 2022 Adopted City Budget Growth Factors 1995 2021 Estimate % Change Parks (Number) 54 68 26 Developed Park Acreage 512 630 23 Trails (miles) 0 41 100 Developed Residential (acres) 7,750 9,866 27 Undeveloped Residential (acres) 14,616 12,680 (13) Fire/Medical Runs 625 1,744 179 Growth Factors 2000 2021 Estimate % Change Calls for Service — Police 9,588 14,110 47 Incident Reports 8,385 5,113 (39) Note: Reference Year is 2000 due to database reporting changes. CAPITAL OUTLAY/IMPROVEMENTS Requests for capital outlay/improvements in the Adopted 2022 Budget are funded through a variety of sources including the General Fund and capital equipment/project levies, Special Revenue and Enterprise Funds, assessments and through the issuance of notes and bonds. Capital equipment and improvements in the Adopted 2022 Budget amounts to $12,443,500.Of that total amount, $135,000 will be funded by the General Fund levy, $482,500 will be funded by the capital equipment/project levy and reserves, $328,000 will be funded through facility maintenance reserve levy and reserves, $4,150,000 funded through street reconstruction bonds, $785,000 through equipment certificates and the remaining through other funding sources. The City's 2022 - 2026 Capital Improvement Plan (CIP) process was instrumental in producing the outcomes outlined in the 2022 Budget and should be referred to for a detailed analysis of significant capital outlays/improvements. For additional information on all the capital outlay / improvements in the City's 2022 — 2026 CIP, please see the appendix for a brief description of each item and/or go to the City's website at www.andovermn.gov and view the complete document located in the Finance Department section. 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/improvement expenditures are below followed by a list of improvement projects and their impact on operations. 14 Mayor, Councilmembers, Residents 2022 Adopted City Budget 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 inspected routinely. These replacements are funded by the General Fund. $400,000 is planned for the paving of Pine Hills North parking lot and will be funded by park dedication fees and the Capital Equipment Reserve Capital Projects Fund. Facility eg ment - $275,000 is budgeted for the reconstruction of the parking lot at City Hall. $45,000 is budgeted for the replacement of the roof top HVAC unit at the public works facility. All funded by the Facility Maintenance Reserve levy and/or reserves. Emergency Mana eg ment - $50,000 is budgeted for the replacement of two emergency warning sirens. Funding for this project is through the Capital Equipment Reserve Capital Projects Fund. Water Utility - $1,655,000 is budgeted for the recondition and repainting of water tower #2 located near city hall. This project is funded by the Water Trunk Capital Projects Fund. PROJECT TITLE COST DESCRIPTION ANNUAL SAVINGS ANNUAL COST Replacement — Walk Behind Floor Scrubber $15,000 Replace the floor scrubber that is used daily in the community center. $ - $ - Exterior Caulking $50,000 Replace exterior caulking between precast panel joints. $ - $_ New — Scissor Lift $15,000 Purchase a scissor lift specifically for the community center. $ - $_ Emergency Operations Center rovement $15,000 Continue remodeling a functional Emergency Operational Center (EOC) by improving workable space at Fire Station #L $ - $_ —Im Replacement - Emergency Sirens $50,000 Siren replacement, two per year. $250 $_ New Development Projects $185,000 New developments include the construction of sanitary sewer, water main, storm sewers and streets.(City share $ - $5,000 Pedestrian Trail Maintenance $60,000 Trail maintenance such as crack filling and seal coating $1,000 $ - Replacement— Pick Up Truck #6 $50,000 Replace a 1996 truck with 107,500 miles. $ - $250 Annual Parking Lot Maintenance / Relacement $275,000 Replace the parking lot at City Hall, including the drive lane to the garage and dum ster. $2,500 $_ Replacement— Roof Top Package Unit PW $45,000 Replace the roof top package unit that supplies the office area at Public Works. $500 $_ Replacement — Furnace CH $8,000 Replace the furnace located in the Riser room at City Hall. $200 $_ New — First Response Vehicle $70,000 Add a large SUV as a first response vehicle to the Fire Department fleet. $ - $1,000 15 Mayor, Councilmembers, Residents 2022 Adopted City Budget New - Digital Fire Extinguisher System $12,000 Training system that allows for a safe and effective way to use a fire extinguisher. Grant funded. $ - $ - -Training Replacement- 800 MHz Radios $50,000 Phase out the 800 MHz radios over the next four years since they are no longer manufactured and supported. $250 $ - Replacement- Grass / Rescue Vehicle $275,000 Replace a 1991 Fire Grass vehicle. Grant funded. $ - $500 New - Mobile CAD $12,000 Install CAD terminals in the fire vehicles. $ - $2,000 Replace/Repair Play Structures - Various Parks $100,000 Replace existing playground equipment and repair fall zones to achieve ADA accessibility. $500 $ - Replace/Repair Major Park Projects - Various Parks $35,000 Additional funding for the major park improvements: fencing rebuilds, shelter replacements and parking lot reconstruction. $ - $ - Replacement- Cushman 9546 $13,000 Replace a 1994 field dresser with 5,923 hours. $150 $ - Replacement - Tractor #515 $50,000 Replace a 2002 tractor with 5,124 hours $250 $ - New - Zero Turn Mower $10,000 Add an additional zero turn to the fleet. $ - $250 Replacement- Large Capacity Mower $130,000 Replace a 2001 Groundmaster with 2,585 hours $200 $ - Annual Miscellaneous Park Projects $25,000 For miscellaneous projects requested by the public, City Council or Park and Recreation Commission each year. $ - $ - Pine Hills North Parking Lot $400,000 Pave the parking lot at Pine Hills North Park. $1,000 $ - -Improvements Dog Park Parking Lot and Trail Paving $37,500 Pave the parking lot and add a handicap accessible trail. $ - $ - Pine Hills South Parking Lot Paving $67,000 Pave the parking lot at Pine Hills South Park. $500 $ - Oak Bluff Park Basketball Court $10,000 Install a basketball court (half) at Oak Bluff Park. $ - $ - Replacement - One Ton Truck w/ Plow $85,000 Replace a 2005 one ton truck with 107,300 miles. $250 $ - Storm Sewer Improvements $68,000 Each year, areas of the City are identified where improvements are required to maintain our storm sewers stem. $ - $ - New - Dump Truck w/ Plow $250,000 Add a new dump truck with plow to the fleet. $ - $1,500 Replacement- Asphalt Roller $20,000 Replace the asphalt roller with 1,990 hours. $100 $_ - Dump Truck w/ Plow $255,000 Replace a 2000 dump truck with plow with 59,120 miles. $500 $_ -Replacement Annual Street Crack Seal Project $190,000 Crack seal a portion of City streets. $1,700 $ - Annual Pavement Markings $60,000 Annual striping of City streets. $ - $ - Curb, Sidewalk & Pedestrian Ramp $105,000 Repair/replace damaged and failing concrete curb and gutter throughout the city. $500 $ - -Replacement Municipal State Aid Routes / New & Reconstructed $1,600,000 The Street Reconstruction projects will consist of milling the existing street surface and constructing a new asphalt surface. $7,500 $ - Annual Street Reconstruction $3,400,000 The Street Reconstruction projects will consist of milling the existing street surface and constructing a new asphalt surface. $7,500 $ - Gravel Road Improvements $19,000 $ - $ - 16 Mayor, Councilmembers, Residents 2022 Adopted City Budget Street Mill & Overlays $2,000,000 Overlay of approximately 1.5" of bituminous on roadways that are identified as still structurally sound that will significantly extend the roadways life cycle. $ 7,500 $_ Municipal State Aid Routes / Mill & Overlay $170,000 Overlay of approximately 1.5" of bituminous on roadways that are identified as still structurally sound that will significantly extend the roadways life cycle. $ - $500 Bunker Lake Blvd Concrete Median $150,000 Remove plantings /irrigation in the median and fill with 4 inches of concrete. $1,000 $ - Recondition & Paint Water Tower #2 $1,655,000 Recondition and paint water tower 92. $500 $ - Residential Meter Replacement $100,000 Replace older water meters. $500 $_ Water Main Gate Valve Replacement $200,000 When reconstructing streets, gate valves are inspected and replaced if needed. $ - $_ Water Treatment Plant Actuator $52,000 Replace the 24" actuators (8). $ - $ - -Replacement TOTAL $12,443,500 FUND BALANCE The City adopts fund balance goals to meet short and long-term needs. Fund balance goals are established to provide for cash flow needs, capital purchases, emergency contingencies and other specific needs. The General Fund projected to use $682,948 of fund balance to cover operations in 2022. The work done by staff relative to the 2022 revenue and expenditure estimates has achieved the Council 2022 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 45% of planned 2022 General Fund expenditures available from the 2021 budget (the targeted fund balance is approximately $6,021,942). 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 snowfall season ■ 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 ($150K) — 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 $86,686 largely due to the decertification of the tax increment finance district in 20121, 2014 and 2016 which were charged an administrative fee by the EDA ($130,000). 17 Mayor, Councilmembers, Residents 2022 Adopted City Budget 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 increase $36,532 as operations of the sports complex and another court to the fieldhouse get dialed in. The American Rescue Plan Act Funding is accounted for in a special revenue fund; revenues and expenditures will be accounted for according to the implementation guide of the United States Treasury. The Debt Service Funds are projected to increase by $1,041,976 in 2022 due to the timing of when levies are collected and when the debt service payments are made. In the Capital Projects Funds, the Water Trunk Fund is decreasing ($1,610,399) due to the reconditioning and repainting of water tower #2. The Sewer Trunk Fund is increasing ($358,298) as funds are being set aside for future trunk replacements. The Road and Bridge Fund is increasing $2,092,491 in 2022 due to the issuance of street reconstruction bonds with the need to spend down bond proceeds. The Park Dedication Projects Fund is decreasing $150,143 as the City continues to make improvements to the park system and a portion of park dedication fees being used to fund the community center expansion project. The Trail & Transportation Fund is increasing $160,000 due to the sale of a residential lot originally bought for a trail underpass which is no longer feasible. The Tax Increment Projects Fund is decreasing ($450,000) as new redevelopment/economic strategies take place. 2021A G.O. Street Reconstruction Bonds Fund are planned to be spent down with in the next two years. COMMUNITY VISION & GOALS While each budget year appears to only be dealing with the task at hand, the City of Andover, in addition to adopting each year's budget development guidelines, does keep in mind throughout the process the community's slogan, vision statement and short- and long-term organizational goals that are meant to say who and what the City of Andover is. The city's adopted slogan is "Welcome Home", and the vision statement is "Andover, a safe, growing community in which to live and work which enhances the quality of its citizens' lives through recreational opportunity, quiet neighborhoods, civic involvement, and fiscal and environmental stewardship." The loniz-term organizational values are: EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES - the City of Andover exists to provide quality services to the public in a professional and cost-effective manner. 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. M Mayor, Councilmembers, Residents 2022 Adopted City Budget 3. ETHICS AND INTEGRITY- the City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4. TREATING THE CITIZEN AS OUR CUSTOMER - the City of Andover believes that the citizen is our customer and, as such, should be treated with courtesy, respect, and integrity. 5. OPEN AND HONEST COMMUNICATION - the City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. The short term (one to five years) organizational goals are: 1. FISCAL GOALS - the City recognizes the following fiscal values as the basis for delivering current and future services to the residents of Andover. A. Assure city financial stability through cost effective services. B. Focus spending on community needs; wants need to be supported by new or redirected sustainable revenues. C. Explore new revenue streams and capture new growth for community needs. D. City investments need to 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 the community 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 infrastructures should consider future operations and maintenance in addition to initial cost. 2. COMMERCIAL/RESIDENTIAL DEVELOPMENT/REDEVELOPMENT GOALS - the City wants to be supportive of those invested in or wanting to invest in the community. A. Facilitate upgrades or redevelopment of blighted or underdeveloped parcels to improve livability, community character and tax base. B. Work with business owners and property owners to assist them in being successful in the community. 19 Mayor, Councilmembers, Residents 2022 Adopted City Budget 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 programs and housing types to determine useful programs and code updates that the City could adopt that have a positive impact on community market value, meet housing demands and preserve neighborhoods. I. Evaluate whether the City is adequately providing locations, through zoning, for expanded commercial areas and "starter homes". J. Secure approval and implement the 2018 Comprehensive 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 the City 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. 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 with school districts, Anoka County, nearby cities and local sports associations. C. Advocate for safe, efficient commuting routes for our residents and business owners. D. Support an effective and comprehensive transportation system for 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 without restricting the citizen's freedom to choose from all 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. 20 Mayor, Councilmembers, Residents 2022 Adopted City Budget 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 to improve 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 reduce or eliminate unnecessary or unwanted service deliveries. G. Encourage quality building standards. H. Complete Public Works Maintenance Facility and Cold Storage buildings on the city campus, and related parkway road from Nightingale Street to Tower Drive. I. Continue conversations regarding Community Center expansion with partners about their needs and finances. Establish appropriate facility access and users' fees and provide a process and opportunity for public input. J. Review Community Center Advisory Commission structure to provide representation of all user groups. K. Continually evaluate whether we are following the Park Dedication Study when spending park dedication funds and update the study when significant changes are made. L. Continue to maintain Kelsey Round Lake Park as a signature nature park along 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. 21 Mayor, Councilmembers, Residents 2022 Adopted City Budget 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 surveys can 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 City updates on website under "News" section. LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible to ensure the stability of the City's basic services. Considering past state aid reductions and previous years levy limits imposed by the state legislature and the current sporadic onset of levy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing enough revenues to fund City services as follows: ♦ Employing a strategy aimed at reducing the City's reliance on the property tax levy to fund basic City services through "sustainable" revenue sources such as special revenues, user fees and fee -for -service transactions. ✓ The City tax rate will increase in 2022 when applied to the City's growing taxable market values. 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. 22 Mayor, Councilmembers, Residents 2022 Adopted City Budget ✓ The City employs a cost accounting system that is department specific which attempts to accurately reflect service delivery costs at the department and division levels. By including all supplemental services as they relate to personnel, charges and services, supplies and capital outlay will further distinguish the total costs of the service provided. The City can analyze these costs at the sub -category detail levels in support of overall policy goals. ♦ The development of work performance goals for each department to ascertain and measure how each operating division contributes to the City's overall public service mission. ✓ Each department is responsible for identifying relevant performance data to allow for an independent analysis of specific service outcomes. Data is reviewed to provide the Council and general public with a better understanding of the operational demands, resource inputs and performance outcomes associated with a specific service delivery system. ♦ The development of long-term financial models that identify anticipated trends in community growth and financial resources, designate appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. ✓ The City continually maintains various financial models to determine the long-term impacts of present-day expenditure and financing decisions. Fiscal assumptions are based upon a complex set offinancial data including growth factors, tax capacity valuations, per capita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. ♦ The aggressive and appropriate investment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. ✓ Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates of deposit, municipal bonds, federal agencies and corporate paper and are designed to maximize municipal investment income. Long-term investing is designed to achieve the best yield in the current market, following a strategy that secures income streams at a higher rate of return for a longer period of time. ♦ Greater reliance on technology to enhance employee productivity in all areas of City operations and improve customer communications. ✓ The City has taken steps to invest additional time and energy on labor saving technology, such as new software, enhanced programming and optical imaging paper files. Staff implemented an optical imaging solution that enabled the City to reduce storage areas previously 23 Mayor, Councilmembers, Residents 2022 Adopted City Budget dedicated to paper files and provide a more economical and efficient data retrieval system. In addition, the City implemented financial management software to improve reporting and operating efficiencies. Both implementations have allowed the City to reduce staffing due to the increased efficiencies with each new system. ♦ The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended to ensure that current and future taxpayers share equally in underwriting the cost of significant public expenditures. ✓ The City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existing and future taxpayers share equally in the cost. In addition, the City has established a separate capital projects levy to underwrite the cost of period of time selected capital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. The five year Capital Improvement planning process is critical in achieving these results. ♦ Involving all employees in the process of re -engineering the work environment by encouraging cross -training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. ✓ City staff is encouraged to identify work practice issues that are inefficient or overly bureaucratic. The management team is committed to involving their employees and fostering an environment that challenges the status quo of City operations. ♦ Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointly purchase equipment and develop strategies to deal with local issues using a regional approach. ✓ The City has established several equipment and service delivery sharing arrangements with neighboring communities and has several joint powers agreements in place on a variety of local and regional issues in the area of public safety, telecommunications, public access television and wastewater service initiatives. EXECUTIVE SUMMARY The budget, as presented, reflects Council's direction and staff commitment to achieve a cost-effective, efficient and high -quality service delivery model. Essentially, the 2022 Adopted Budget reflects the City's commitment to live within its means and ensure that tax dollars are wisely managed and expended in as prudent a manner possible to achieve high -quality service outcomes. It is interesting to note that the City of Andover continues to maintain one of the lower tax rates in Anoka County, as well as within the entire metropolitan area. City spending per capita continues to rank in the bottom half when compared to similar cities. 24 Mayor, Councilmembers, Residents 2022 Adopted City Budget Budeetary Process Guiding the City budget process were Council policy guidelines that were described earlier in this message. The budget process was approached by employing strategies associated with extending the useful life of existing equipment; the utilization of cost center accounting that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; and purchasing new equipment and introducing new technologies that allow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in City operations. The budget process included the opportunity for all department heads and supervisors to actively participate in a team process. Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the same framework in developing a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. In order to meet these growing challenges, the City must continually evaluate new ways and methods of conducting business in a more economical, competitive and cost-effective manner, while keeping the quality of City services high and meeting the reasonable service expectations of the community. The budget process incorporates a management vision supported through: • increased utilization, understanding and promotion of technology in the delivery of public services; • emphasis on long-term strategic planning to appropriately identify, allocate and effectively utilize resources to meet future service needs; • greater participation, accountability and flexibility in the work force that will allow for the development of innovative responses to the increased demand for cost-effective services; • the need to focus on developing an alternate framework of special revenues and user fees as alternate funding mechanisms to gradually reduce the City's reliance on tax levies by recovering service costs from the appropriate users of the service; 25 Mayor, Councilmembers, Residents 2022 Adopted City Budget • the recognition that the City should work to assist the community in meeting challenges as a partner and not as the sole provider; and a strong voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The 2022 Adopted Budget is the product of the collective efforts of the management team and their respective staffs. They have worked diligently to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognition is appropriate with respect to the involvement of Lee Brezinka, Finance Manager and Finance staff in generating reliable financial data in which a sound and valid budget document was produced. The entire management team should be recognized for their diligent efforts in preparing a budget that meets the needs of this growing community yet recognizes the limited nature of financial resources. The City Council should be recognized for their frugal use of municipal resources and continual efforts to provide needed services to the residents they represent and serve. I am appreciative of the commitment, good judgment and expertise that each member of the Council has contributed to the budget process. Respectfully submitted, Jim Dickinson City Administrator 26 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. R097-21 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2022 BUDGET AND 2022 PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR. WHEREAS, the preparation and adoption of budgets is recognized as sound financial practice; and WHEREAS, the City of Andover receives significant financial support from its residents through the payment of property taxes; and WHEREAS, the City of Andover has the responsibility to appropriately and efficiently manage the public's funds; and WHEREAS, Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to December 28, 2021; 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, 2021. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2022 City of Andover Budget and the 2022 property tax levy totaling $16,107,254 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2022 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 12,699,145 General Fund $ 13,382,093 Special Revenue Funds 4,117,588 Special Revenue Funds 3,758,769 Debt Service Funds 4,659,505 Debt Service Funds 3,617,529 Capital Projects Funds 15,021,155 Capital Projects Funds 13,294,520 Enterprise Funds 6,140,115 Enterprise Funds 6,264,073 Internal Service Funds 1,437,715 Internal Service Funds 1,612,431 Total $ 44,075,223 Total $ 41,929,415 Adopted by the City of Andover this 7th day of December 2021. ATTEST: Michelle Harmer — Deputy City Clerk CITY OF ANDOVER Sheri ta - 27 CITY OF ANDOVER, MINNESOTJ 2022 Property General Fund Levy 2022 Levy General Operations $ 9,868,370 Community Center Operations 155,000 Park Repair/Replacement Items 130,000 Total General Fund 10,153,370 Debt Service Funds Levy 2012C Taxable G.O. Abatement Bonds 974,628 2018A G.O. Capital Improvement Plan Bonds 617,519 2019A Taxable G.O. Abatement Bonds 1,014,065 2020A G.O. Equipment Certificate 374,850 2021A C.O. Equipment Certificate 170,000 2021A G.O. Street Reconstruction Bonds 600.000 Total Debt Service 3,751,062 Other Levies Capital Projects Levy Capital Equipment/Project 275,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road & Bridge 1,409,579 Pedestrian Trail Maintenance 108,243 Lower Rum River Watershed 40,000 Total Other 2,202,822 Gross City Levy $ 16,107,254 Attachment A 28 STATE OF MINNESOTA) COUNTY OF ANOKA ) CITY OF ANDOVER 1, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that 1 have carefully compared the attached Resolution No. R097-21 adopting the City of Andover 2022 Budget and 2022 Property Tax Levy with the original record thereof preserved in my office, and have found the same to be true and correct transcript of the whole thereof. IN TESTIMONY WHEREOF, I have hereunto subscribed my hand this 7th day of December 2021. Michelle Hartner — Deputy City Clerk 29 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 #1 To ensure city services keep pace with the city's growing and changing population. Goal #2 To enhance communication with the public. Goal #3 To support processes that involve citizen engagement. Goal #4 To develop and update the city's capital improvement program. Goal #5 To broaden and preserve the city's tax base. Goal #6 To balance and prioritize provision of city services with available resources. Goal #7 To respect the environment. 30 Budget Development Process The Budget Process Andover City ordinance 216, Section 2., Major Areas of Accountability requires the City Administrator to submit an annual budget to the City Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that the City Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 15t" Beginning in levy year 2002, the State of Minnesota is allowing certain governmental units exemption from the public hearing and publication requirement if its total proposed property tax levy does not exceed its previous year final property tax levy by more than the percentage increase in the implicit price deflator. The City of Andover did not fall under this exemption and held a meeting pertaining to the 2022 Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 7, 2021 at 7:00 p.m. in the City Council Chambers. The date was advertised in the September City Newsletter, on public TV, and in the local paper. Final City Council action adopting the City Budget and Property Tax Levy occurred on December 7, 2021. The adopted 2022 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 28, 2021. The budget is prepared on an annual basis, and follows the calendar year, January 1 st to December 315t. Policies are set by the City Council in one of two ways: 1) Policies are initiated by actions of the City Council at its regular council meetings through adoption of ordinances, resolutions, or motions. 2) Policies are also initiated, studied, and reviewed at special work sessions called for that purpose. The City Administrator and City staff address the Council's concerns in the preparation of the budget and evaluate the financial costs of the implementation of these policies and include them in the budget where economically feasible. In summary, policy issues are identified by the City Council, evaluated, and costed out by the Administrator and management team, and returned to Council for appropriations if necessary. If no appropriation is necessary, the new policy is implemented as soon as practical by the Administrator. Each activity manager is given a monthly financial report of expenditures compared to the adopted budget. Expenditures related to City activities may not exceed appropriations without approval of the City Council. Below is the 2022 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. 31 CITY OF ANDOVER 2022 Budget Development Calendar Date Activity Responsibility April 27, 2021 Council Workshop to discuss budget guidelines. City Council / Staff May 4, 2021 Council adopts 2022 Budget Development Guidelines. City Council / Staff May 25, 2021 Council budget progress report distributed and Council budget discussion. Council / Staff June 22, 2021 Council budget discussion. City Council / Staff July 8 — 9, 2021 2022 Budget Decision packages prioritized and finalized. Admin / Mgmt Team July 20, 2021 Council budget progress distributed. Receives 2022 Proposed Budget. City Council / Staff August 17, 2021 City Council follow-up workshop for review of 2022 Proposed Budget. City Council / Staff August 17, 2021 City Council preview of Proposed 2022 Tax Levy Presentation. City Council / Staff September 1, 2021 State Department of Revenue (DOR) to certify levy limits for 2022. DOR September 21, 2021 (Req.) City to adopt proposed 2022 tax levy and select public hearing dates. City Council September 28, 2021 City Council Budget discussion — focus on SRF, DSF, CPF, EF & ISF. City Council / Staff September 30, 2021 (Req.) City to file proposed 2022 special levies with DOR Finance / DOR October 26, 2021 City Council Budget discussion — focus on DSF & CPF. City Council / Staff November 1 — 12, 2021 County Auditor to mail parcel specific notices. County November 23, 2021 City Council preview of Public Hearing. City Conned / Staff December 1 - 13, 2021 (Req.) City conducts Public Hearing during this time frame. City Council December 7, 2021 City of Andover Public hearing on 2022 Tax Levy and Operating Budget. City Council December 7, 2021 City Council adopts 2022 Tax Levy and Operating Budget. City Council 32 Budgeting for City Operations The City is required to account for revenues and expenditures in accordance with generally accepted accounting principles. Because fund accounting is required for financial reporting, the appropriation budgets are organized and presented in like manner. The summary information section presents a summary of revenues and expenditures of each fund. A brief description of each fund type can be found at the beginning of each section. Basis of Accounting and 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 the following basis of accounting, which is consistent with the accounting methods used for financial reporting. Government Funds: All 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 2002 and continues to do so. Proprietary Funds: Proprietary 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 principal and interest on long-term debt and the purchase of capital assets in the proprietary funds is reflected in the budgeted expenses as an outflow of resources to 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 three enterprise funds and two internal service funds. The City of Andover has adopted the following accounting, auditing and financial reporting policy: Accounting, Auditing and Financial Reporting Policy 1. The City of Andover will establish and maintain a high standard of accounting practices. Accounting standards will conform to Generally Accepted Accounting Principles (GAAP) as outlined by the Governmental Accounting Standards Board (GASB). 2. At the end of each fiscal year, a Certified Public Accounting firm that will include issuing a financial opinion will conduct an audit of the City records and a management and compliance report on internal controls. 3. The City of Andover will maintain a strong internal audit function. 4. The City will maintain a fixed asset system to identify and protect all City assets. 5. The Finance Department will prepare monthly financial reports for internal management purposes. 33 6. The City Council delegates the authority to assign fund balance, as required for prudent fiscal management, to the City Administrator and Finance Director. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, 3) unassigned. 7. Annually, the Finance Department will prepare a comprehensive annual financial report. This report shall be made available to the elected officials, city management, bond -rating agencies, and the general public. 8. The City will annually submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA) to determine its eligibility to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Budget Monitoring and Amendments The Andover Financial Policies identifies an Operating Budget Policy which includes the process for monitoring and amending the budget, fund balance considerations and the capital improvement budget coordination, that policy is as follows: Operating Budget Policy 1. The formal budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. A. The City will attempt to maintain its present service level for priority and essential services subject to available revenues. New services will be considered for funding within available resources. B. The City of Andover will utilize a "bottom -up" resource allocation approach. Each department will have an opportunity to request personnel, goods, capital items and services needed to carry out its responsibilities in a timely manner. C. The resources to fund the budget will include all revenues reasonably anticipated from all sources and the unrestricted unassigned fund balance estimate to be carried forward at the beginning of the fiscal year. D. The City enterprise operations are to be self-supporting, including capital improvements and depreciation. Enterprise operations are to be reviewed annually for self-sufficiency. E. The City will utilize procedures that allow departments to integrate priorities and objectives into the budget requests. 2. The operating budget, authorizing expenditure of City monies, will be adopted annually by the City Council at the department level. Expenditures may not exceed the total for any department, within a fund, without the City Council's approval. The authority to make changes to the adopted City Budget during the operating year is as follows: A. City Council approval is required for all budget adjustments or transfers that will increase the department's adopted expenditure budget, or adjustments that are made to facilitate a department restructuring. 34 B. City Council approval is required for any budget adjustment that exceeds either $10,000 or 5% of a department's expenditure budget, except that adjustments under $10,000 may be approved as provided in C. & D. below. C. City Administrator's, or their designee when unavailable, approval is required for all budget adjustments or transfers made to personal services or capital outlay under $10,000 on a one-time basis. D. Budget adjustments and transfers among expenditure accounts may be authorized during the fiscal year by the City Administrator and the Finance Director if there is no effect on the department's gross expenditure budget and the adjustment is not to employee compensation. E. Under no circumstances should budget adjustments be split to avoid approval limits. 3. The City will budget to maintain fund balances at adequate levels to ensure that sufficient resources are available for current and future expenditures, whether planned or unforeseen. A. The City will budget to maintain an unassigned fund balance for each operating fund, to support operations until current tax revenues are received. Based upon the semi-annual collection of local taxes, each operating fund, relying on property tax related revenues, should maintain an unassigned fund balance at year-end necessary for approximately 6 months of the subsequent year's operation. B. The City will budget to maintain an unassigned fund balance available for contingencies of between 1 percent and 3 percent of budgeted expenditures for each operating fund in order to finance unforeseen items and events that occur during the course of the year. It is not necessary for each fund to hold its own contingency. The General Fund may hold contingencies for other funds when appropriate. C. All unencumbered appropriations and encumbered purchases less than $1,000 lapse at year-end. However, the appropriation authority for all major capital projects and capital assets carries forward automatically to the subsequent year. Appropriations for encumbered purchases in excess of $1,000, which are not budgeted in the ensuing year, may be transferred to the subsequent year with the approval of the City Administrator and Finance Director. The current year appropriation is reduced and the subsequent year appropriation is increased. 4. The City will maintain a budgetary control system to ensure adherence to the budget and will prepare regular reports, which compare actual revenues, and expenditures to budgeted amounts. 5. The City will coordinate development of the Capital Improvement Budget with the development of the annual operating budget. Each capital improvement project is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel required and additional operating expenses. 6. The capitalization threshold for assets of the City of Andover, as defined in the Fixed Asset Policy, applies to all budgets and purchases associated with the Capital Expenditure series of accounts. 7. Annually, the Finance Department will prepare an Annual Operating Budget report. This report will be made available to elected officials, City management, bond -rating agencies, and general public. 8. The City will annually submit its annual operating budget document to the GFOA to determine its eligibility to receive the GFOA's Distinguished Budget Presentation Award. 35 Determination o f Revenue Estimates The Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. Discussion regarding specific revenue sources can be found in the summary information section of the budget. The Andover Financial Policies identifies a Revenue Policy that outlines the City's revenue philosophy and that policy is as follows: Revenue Policy 1. The City will attempt to maintain a diversified and stable revenue system to shelter it from short -run fluctuations in any single revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of economic downturns. 2. The City will follow an aggressive policy of collecting revenues. 3. The City will periodically review fees and charges in order to keep pace with the cost of providing the service or that percentage of the total cost deemed appropriate by the City, and will conduct a public hearing or adopt an ordinance, as required by law, prior to setting fees or charges. 4. The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax fees and charges. 5. The City will allocate Citywide revenues to funds, which provide services to the entire City. 6. All revenues, reasonably expected to be unexpended and unencumbered at the end of the year, will be anticipated as "available fund balance" in the budget of the following year. 7. The City will attempt to invest all cash holdings in accordance with the cash and investment policy and maximize those holdings with an effective payment policy. Capital Improvement Program Andover's Capital Improvement Program is intended to provide the City Council and staff with a process for identifying and prioritizing capital projects in order to coordinate the financing and timing of improvements, which maximizes the return to the public. The process will enable the City to evaluate long- term cost and benefits of projects being adopted for the coming year (2021) against those projects planned between 2022 and 2025. 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. 36 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 will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency beyond the City's control or reasonable ability to forecast. 4. The City may use long-term debt financing when all of the following conditions exist: 37 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 — this policy applies to the investments of all financial assets of the City of Andover except investments of employees' investment retirement funds. 2. General Objectives — the primary objectives, in priority order, of investment activities shall be safety, liquidity and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity. 3. Standard of Care A. Prudence. The standard of prudence, meaning not for speculation and with consideration of the probable safety of the capital as well as the probable investment returns, shall be used by investment officials. B. Ethics and Conflicts of Interest. Employees involved in the investment process shall have no personal business activity that could conflict with the proper execution and management of the investment program or could impair their ability to make impartial decisions. 38 C. Delegation of Authority. Authority to manage the investment program is granted to the Finance Director who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy and applicable state statutes. 4. Safekeeping and Custody A. Authorized Financial Dealers and Institutions. A list will be maintained of financial institutions authorized to provide investment services. B. Internal Controls. The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. C. Delivery vs. Payment. All trades, where applicable, will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds. 5. Suitable and Authorized Investments A. Investment Types. The following investments will be permitted by this policy and are those defined by state and local where applicable: • U.S. government obligations, U.S. government agency obligations and U.S. government instrumentality obligations which have a liquid market with a readily determinable market value; • Certificates of deposit and other evidences of deposit at financial institutions, bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A-1, P-1, or F-1, or higher) by a nationally recognized rating agency; • Investment -grade obligations of state, local governments and public authorities; • Repurchase agreements whose underlying purchased securities consist of the investment types listed above. • Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar - denominated securities; and • Local government investment pools, either state -administered or through joint powers statutes and other intergovernmental agreement legislation. B. Collateral ization. Full collateral ization 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. 39 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 the City's official newspaper, the Anoka County Union, along with notices posted on public bulletin boards. Citizens are invited to provide written or oral comments at the public hearings. The County Property Records and Taxation Division is required to notify each property owner of the impact of the proposed tax levy upon each individual parcel of property along with the final budget hearing dates. Awards The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Andover for its annual budget for the fiscal year beginning January 1, 2021. This is the twentieth consecutive time the City of Andover has received this award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 40 Revenue Projections As mentioned earlier, the Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. City of Andover Major Revenue Sources Comparison Misc Rev Spec Assess IIIIIIIIIIIIIIII 11111�111V Intergov'I Rev Invest. Income Tax Increments Charges for Svc IIIIIIIIIIIIIIII 1111111111 Prop Taxes $0.00 $5.00 $10.00 $15.00 $20.00 Millions 2022 Budget 0 2021 Est 0 2020 Actual ® 2019 Actual Following are individual graphs of the major revenue sources over the last few years. Included are brief descriptions of each source and explanations of any variances over the same time period. 41 Revenue Projections — Property Tax & Charges for Services General Property Taxes Property taxes are a revenue source in the General, Special Revenue, Debt Service and Capital Projects Funds. This revenue source is primarily used in the General Fund and is determined on the basis of the availability of other revenue sources and the expenditure level necessary to conduct City business in accordance with Council policy and directives. The original goal for the 2022 budget 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 values and acknowledging community economic concerns, were able to establish an appropriate baseline of city services and a manageable debt service expense level. The general property tax revenue does increase 7.93% as compared to 2021. This revenue source takes into account the elimination of the market value homestead credit program and the insertion of the market value homestead exclusion program (both products of the State of Minnesota Legislature in 2012). Charges for Services Charges for services comes from a variety of sources in the General and Special Revenue Funds; such as project engineering and inspection services to residential and commercial developers, drainage and mapping services, ice, turf 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 2022 and beyond. In the Enterprise Funds, charges for services come from water and sewer usage charges and a storm water utility charge. The water charges are determined by a water rate study, the sewer charges by a sewer rate study and the storm water utility charge are based on the amount of funding needed to comply with federal storm water requirements, each are reviewed annually to cover all expenses. In the Internal Services Fund, the charges for services represent department charges for the maintenance of city equipment and cost of liability insurance coverage. The largest increase is in the Enterprise Funds as the cost of providing these utilities continue to rise. 42 Revenue Projections — Tax Increments and Intergovernmental Revenue Tax Increments Tax Increments are a revenue source in the Capital Projects Funds. In 2012 and 2014, two significant tax increment finance districts were decertified at the end of the year resulting in a decrease of tax increment revenue for 2013 ($1,470,700) and 2015 ($205,000). Two more districts were decertified in 2016. Tax increment is used to pay for debt service on tax increment bond issues and expenses related to economic development and redevelopment within tax increment development districts. Annually, an extensive analysis is done reviewing the debt service requirements and the redevelopment projects contemplated in the capital improvement plan. Of the two remaining tax increment districts, one has a pay-as-you-go note associated with it and the other is reimbursing the district for expenditures already made. Looking forward, the City will create tax increment districts only when a significant project meeting a required "but/for" test is deemed to achieve City goals. Intergovernmental This revenue source is present in the General, Special Revenue, Debt Service and Capital Projects Funds. In 2008, 2009, 2010 and 2011, the Governor unallotted $196,150, $350,938, $490,186 and 490,186 of the Market Value Homestead Credit (MVHC) to help offset the state budget deficits. In 2012, the MVHC program was eliminated and a market value homestead exclusion program was put in its place. The new program reduced the taxable market values for certain homestead properties. The intergovernmental represents the remaining state aid distributions of State Highway aid and state police and fire aid. This revenue source also represents grants applied for and awarded from other government agencies (federal, state, school, or county) such as Community Development Block Grants and DNR grants. In 2017 and 2020, the City was able to get an advance on Municipal State Aid (MSA) construction allotment funds for projects already in progress. Any unused MSA allotment is carried over and drawn upon as eligible projects are constructed in 2015, 2016, 2018 and 2021. In 2014, LGA was reinstated for the City ($74,655) and was used to fund the growing infrastructure needs of the Road and Bridge Capital Projects Fund. In 2015, LGA was again eliminated for the City and then reinstated again in 2016 ($2,698) as notified by the State based on the new state formula. In 2017, 2018, 2019, 2020 and 2021, LGA was again eliminated for the City. In 2020, the City received $2,465,736 from the CARES Act and is expecting to spend the ARP Act funds ($3.5mil) in 2022 and 2023. 43 Revenue Projections — Investment Income and Special Assessments Investment Income This revenue source is in all funds. Investment income is interest earned on investments and is allocated to funds based on average cash balances within each fund. Revenues from this source are dependent on interest rates and cash balances available for investment. The jump in 2019 is largely due to bond proceeds for two city projects — Public Works Vehicle Maintenance Facility, Wash Bay & Cold Storage and the addition to the Community Center. Those proceeds were invested and laddered to come available according to the construction schedule. As bond proceeds are spent and interest rates continue to decline, so does interest revenue. Special Assessments Special assessments are a revenue source in the Debt Service and Capital Projects Funds. Special Assessments are used for the payment of bonds for related capital projects and for reimbursing the City's Capital Projects Funds for projects financed internally. The 2022 budget is based on special assessment payment schedules and a review of residential development within the City of Andover. Special Assessment revenue fluctuates based on the type and cost of street reconstruction projects being assessable to benefiting properties and the timing of when those assessments are paid. It also depends on whether residential development is done as a developer -installed project (developer is paying all the expenses) or as a city -installed project (the city is funding the project through bonds or the PIR fund and assessing costs back to the property). In late 2021, the City issued street reconstruction bonds to for projects in 2022 and 2023; a portion of those projects will be assessed to benefiting properties. 44 Revenue Projections — Miscellaneous Revenue Miscellaneous Revenues Licenses and Permits — This revenue source is found only in the General Fund. These revenues are based on City determined license rates; State regulated rates and the Uniform Building Code. The 2022 budgeted amount is based on 50 new single-family residential homes using a building valuation of $200,000 each. Fines — Fines are a revenue source in the General Fund only. Fines are collected through the State Court System and are remitted to the City monthly. Fine revenue remains fairly consistent from year to year. User Charges — This revenue source is found in the Capital Projects Funds. These charges are fees paid under development agreements when new construction for residential and commercial projects are initiated. The increase in 2019 is due to the payoff of park dedication fees, trail fees, water system trunk and sewer system trunk charges from existing development agreements. The 2022 budgeted amount brings it back to a normal level. Miscellaneous — Miscellaneous revenues are revenues that do not fit in any other revenue type. Included in this are payments from the YMCA for lease payments ($635,000 — based on a 30 year lease agreement) and reimbursements for actual common space charges and natural gas. This also includes rental fees for wireless antennas. In 2019, the Community Center construction project received a large donation ($500,000) and reimbursement for the expansion of the parking lot. 45 General Fund Revenues: $12,699,145 Expenditures: $13,382,093 General Government Public Safety Public Works Fund Definitions CITY OF ANDOVER 2022 Budget Summary By Fund Type Governmental Funds Special Revenue Funds Revenues: $4,117,588 Expenditures: $3,758,769 EDA Drainage & Mapping LRRWMO Forestry ROW Mgmt / Utility Construction Seal Coating Community Center Gambling City of Andover - Budgeted Funds Total Revenues: $44,075,223 Total Expenditures: $41,929,415 Debt Service Funds Revenues: $4,659,505 Expenditures: $3,617,529 O. Improvement Bonds O. State Aid Bonds O. Equip Certificates O. Referendum Bonds O. Abatement Bonds Capital Projects Funds Revenues: $15,021,155 Expenditures: $13,294,520 Water Trunk Storm Sewer Sewer Trunk Road & Bridge Trail & Transportation Cap Equip Reserve Tax Increment Park Dedication FIR Projects Building Capital Notes / Bond Projects Proprietary Funds Enterprise Funds Revenues: $6,140,115 Expenditures: $6,264,073 Sewer Fund Water Fund Storm Sewer Fund Internal Service Funds Revenues: $1,437,715 Expenditures: $1,612,431 Equipment / Maint. isk Management General Fund - accounts for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and other. Special Revenue Funds - accounts for revenue sources that finance particular functions and projects. Debt Service Funds - accounts for the accumulation of resources for, and the payment of general long-term debt. Capital Projects Funds - accounts for the acquisition or construction of major capital facilities financed mainly with governmental fund sources, general obligation debt, special assessments, and other. Enterprise Funds - accounts for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. Internal Service Funds - accounts for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. 46 Fund Balance/Net Assets, January 1 Revenues & Other Sources General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Revenues & Other Sources: Total Available: Expenditures & Other Uses General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Expenditures & Other Uses: Fund Balance/Net Assets, December 31 Change in Fund Balance CITY OF ANDOVER 2022 Budget Summary Revenues and Expenditures Fund Summary Actual Adopted Estimate Budget 2020 2021 2021 2022 $ 63,076,117 $ 54,359,351 $ 54,359,351 $ 51,691,966 12,686,945 3,951,611 3,609,092 11,666,711 6,534,960 1,306,813 39, 756,132 102,832,249 12,395,878 4,126,568 2,945,320 22,168,768 5,483,259 1,353,105 12,072,732 2,184, 700 3,685,482 4,325,340 5,814,578 1,323,834 29,406,666 83,766,017 12,602,136 2,226,428 3,224,612 6,637,309 7,092,269 1,453,910 12,608,416 3,894,188 3,685,482 5,049,818 6,288,331 1,346,282 32,872,517 87, 231,868 13,402,443 3,345,878 3,223,218 6,891,486 7,172, 769 1,504,108 12,699,145 4,117,588 4,659,505 15,021,155 6,140,115 1,437,715 44,075,223 95,767,189 13,382,093 3,758,769 3,617,529 13,294,520 6,264,073 1,612,431 48,472,898 33,236,664 35,539,902 41,929,415 $ 54,359,351 $ (8,716,766) -13.82% $ 50,529,353 $ (3,829,998) -7.05% Note: A discussion on the major changes in fund balance can be found on pages 17 - 18. $ 51,691,966 $ (2,667,385) -4.91 % $ 53,837,774 $ 2,145,808 4.15% 47 CITY OF ANDOVER 2022 Budget Summary Revenues and Expenditures - All Funds Actual Budget Estimate Budget 2020 2021 2021 2022 Fund Balance/Net Assets, January 1 $ 63,076,117 $ 54,359,351 $ 54,359,351 $ 51,691,966 Revenues General Property Taxes 14,451,737 14,995,648 14,995,648 16,185,254 Tax Increments 100,979 85,000 100,000 100,000 Special Assessments 631,999 671,000 751,858 1,503,900 Licenses and Permits 892,279 436,450 752,050 535,500 Intergovernmental 6,211,801 1,027,370 2,800,582 3,937,941 Charges for Services 9,086,019 8,738,067 9,291,119 9,271,063 Fines 47,630 50,250 51,200 50,500 Investment Income 1,107,296 262,700 285,606 261,700 User Charges 1,642,795 266,610 825,327 360,776 Meters 36,948 13,000 13,000 13,000 Miscellaneous 1,549,618 1,181,850 1,328,300 1,500,300 Total Revenues: 35,759,101 27,727,945 31,194,690 33,719,934 Other Financing Sources Operating Transfers In 2,588,550 1,678,721 1,677,827 2,395,289 Bond Proceeds 1,310,000 - - 7,960,000 Proceeds from Sale of Property 3,000 - - - Total Other Financing Sources: 3,997,031 1,678,721 1,677,827 10,355,289 Total Revenues and Other Sources: 39,756,132 29,406,666 32,872,517 44,075,223 Total Available: 102,832,249 83,766,017 87,231,868 95,767,189 Expenditures Personal Services 7,548,381 8,159,598 8,113,383 8,686,225 Supplies and Materials 1,344,762 1,814,298 1,834,905 1,866,335 Purchased Services 6,747,381 4,778,525 6,047,706 6,551,215 Other Services and Charges 7,691,574 9,429,991 9,476,756 15,465,310 Capital Outlay 18,635,429 3,412,000 3,676,294 2,819,000 Debt Service 3,916,821 3,963,531 3,963,031 4,146,041 Total Operating Expenditures: 45,884,348 31,557,943 33,112,075 39,534,126 Other Uses Operating Transfers Out 2,588,550 1,678,721 Total Other Uses: 2,588,550 1,678,721 Total Expenditures and Other Uses: 48,472,898 33,236,664 Fund Balance/Net Assets, December31 $ 54,359,351 $ 50,529,353 Change in Fund Balance $ (3,716,766) $ (3,829,998) -13.82% -7.05 % Note: A discussion on the major changes in fund balance can be found on pages 17 - 18. 2,427,827 2,427,827 35,539,902 $ 51,691,966 $ (2,667,335) -4.91 % 2,395,289 2,395,289 41,929,415 $ 53,837,774 $ 2,145,808 4.15% 48 CITY OF ANDOVER 2022 Budget Summary Revenues and Expenditures by Fund Type Special Debt Capital Internal General Revenue Service Projects Enterprise Service Total Fund Balance/Net Assets, January 1 $ 8,860,491 $ 1,556,227 $ 2,562,140 $ 27,824,381 $ 10,030,706 $ 858,021 $ 51,691,966 Revenues General Property Taxes 10,076,370 195,000 3,751,062 2,162,822 - - 16,185,254 Tax Increments - - - 100,000 100,000 Special Assessments - 1,503,900 1,503,900 Licenses and Permits 535,500 - - 535,500 Intergovernmental 817,284 1,790,888 1,329,769 - - 3,937,941 Charges for Services 799,110 1,170,500 - 5,867,738 1,433,715 9,271,063 Fines 50,500 - - - - 50,500 Investment Income 75,000 5,200 115,000 62,500 4,000 261,700 User Charges - - 360,776 - - 360,776 Meters - - - 13,000 13,000 Miscellaneous 148,300 806,000 502,000 44,000 - 1,500,300 Total Revenues: 12,502,064 3,967,588 3,751,062 6,074,267 5,987,238 1,437,715 33,719,934 Other Financing Sources Operating Transfers In 197,081 150,000 908,443 986,888 152,877 - 2,395,289 Bond Proceeds - - - 7,960,000 - 7,960,000 Total Other Financing Sources: 197,081 150,000 908,443 8,946,888 152,877 10,355,289 Total Revenues and Other Sources: 12,699,145 4,117,588 4,659,505 15,021,155 6,140,115 1,437,715 44,075,223 Total Available: 21,559,636 5,673,815 7,221,645 42,845,536 16,170,821 2,295,736 95,767,189 Expenditures Personal Services 5,928,069 825,896 - - 1,319,670 612,590 8,686,225 Supplies and Materials 825,015 118,820 - 506,800 415,700 1,866,335 Purchased Services 4,577,595 1,818,620 155,000 - - 6,551,215 Other Services and Charges 1,756,414 658,033 9,889,500 2,577,222 584,141 15,465,310 Capital Outlay 145,000 30,000 - 2,534,000 110,000 - 2,819,000 Debt Service - - 3,361,541 - 784,500 - 4,146,041 Total Operating Expenditures: 13,232,093 3,451,369 3,361,541 12,578,500 5,298,192 1,612,431 39,534,126 Other Uses Operating Transfers Out 150,000 307,400 255,988 716,020 965,881 - 2,395,289 Total Other Uses: 150,000 307,400 255,988 716,020 965,881 2,395,289 Total Expenditures and Other Uses: 13,382,093 3,758,769 3,617,529 13,294,520 6,264,073 1,612,431 41,929,415 Fund Balance/Net Assets, December31 $ 8,177,543 $ 1,915,046 $ 3,604,116 $ 29,551,016 $ 9,906,748 $ 683,305 $ 53,837,774 Change in Fund Balance $ (682,948) $ 358,819 $ 1,041,976 $ 1,726,635 $ (123,958) $ (174,716) $ 2,145,808 -7.71 % 23.06% 40.67% 6.21 % -1.24% -20.36% 4.15% Note: A discussion on the major changes in fund balance can be found on pages 17 - 18. 49 CITY OF ANDOVER Revenue Comparison - General Fund Actual Actual Actual Budget Estimate Budget 2018 2019 2020 2021 2021 2022 REVENUES Property Taxes $ 8,634,130 $ 8,864,720 $ 9,303,235 $ 9,594,493 $ 9,594,493 $ 10,076,370 License and Permits 562,525 855,831 892,277 436,450 752,050 535,500 Intergovernmental Revenues 829,861 822,129 861,178 813,298 887,216 817,284 Charges for Services 888,944 1,133,160 1,070,788 752,360 887,159 799,110 Fines and Forfeits 73,719 62,349 47,630 50,250 51,200 50,500 Interest Income 107,560 208,957 148,974 75,000 75,000 75,000 Miscellaneous Revenue 176,662 192,058 172,174 138,850 149,267 148,300 Transfers 178,558 188,008 190,688 212,031 212,031 197,081 TOTAL REVENUES $ 11,451,959 $ 12,327,212 $ 12,686,944 $ 12,072,732 $ 12,608,416 $ 12,699,145 City of Andover 2022 Revenue Comparison - General Fund Property Taxes Licenses & Permits Intergov'I Rev Charges for Svcs Fines & Forfeits Interest Income Misc. Rev Transfers $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 Millions O Budget 2022 ® Estimate 2021 ® Actual 2020 umu Actual 2019 uuu1. Actual 2018 City of Andover 2022 Revenue by Source - General Fund Misc. Rev 1% Interest Income Transfers 1 % 2% Fines & Forfeits 0% Charges for Svcs 6% Intergov'I Rev 7% Licenses & Permits l 4% I PropPropertyaxes 50 EXPENDITURES General Government Public Safety Public Works Other TOTAL EXPENDITURES CITY OF ANDOVER Expenditure Comparison - General Fund Actual Actual Actual Budget Estimate Budget 2018 2019 2020 2021 2021 2022 $ 2,748,464 25% $ 2,843,957 26°% $ 2,906,325 23°% $ 3,376,128 27°% $ 3,286,300 25% $ 3,504,589 26°% 4,956,352 45% 5,091,793 46% 5,162,234 42% 5,415,427 43% 5,508,650 41 % 5,743,417 43% 3,158,490 28% 3,148,743 28°% 3,314,542 27°% 3,714,653 29°% 3,794,493 28% 3,888,159 29°% 241,940 2% 15,001 0% 1,012,778 8% 95,928 1% 813,000 6% 245,928 2% $ 11,105,246 $ 11,099,494 $ 12,395,879 $ 12,602,136 $ 13,402,443 $ 13,382,093 City of Andover 2022 Expenditure Comparison - General Fund General Gov't Public Safety Public Works Other $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Millions O Budget 2022 ® Estimate 2021 ® Actual 2020 uum Actual 2019 uuu Actual 2018 City of Andover 2022 Expenditures by Function - General Fund Other 2% General Gov't 26 % Public Works 29 % Public Safety 43% 51 CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2022 Actual Actual Actual Actual Actual Budget* Estimate Requested* Change (*) 2016 2017 2018 2019 2020 2021 2021 2022 S % GENERAL GOVERIVUENT Mayor and Council $ 86,989 $ 84,136 $ 87,813 $ 99.001 $ 95,519 $ 108,015 $ 105,115 $ 107,347 (669) -0.62% Administration 187,876 187,514 198,945 211,898 187,758 236,244 235,044 238,442 2,198 0.93% Newsletter 22,731 25,287 17,770 24.413 22,156 25,000 24,300 27,300 2,300 9.20% Human Resources 13,404 15,520 13,666 15.842 16,181 35,202 27,802 34,661 (541) -1.54% Attorney 194,990 188,644 188,031 191,792 195,721 206,941 205,000 212,041 5,100 2.46% City Clerk 148,338 147,450 149,769 160,184 166,221 176,206 175,946 185,278 9,072 5.15% Elections 64,433 17,852 50,629 20.452 91,643 74,212 22,000 77,188 2,976 4.01% Finance 252,563 258,883 272,851 280,199 294,501 320,768 319,118 337,466 16,698 5.21% Assessing 146A73 147,915 149,040 149,033 154,482 161,000 135,000 161,000 0 0.00% Information Services 151,387 149,512 171,637 169,827 187,703 213,738 212,238 226,601 12,863 6.02% Planning & Zoning 414,141 398,780 422,983 412,282 453,133 504,204 500,054 526,669 22,465 4.46% Engineering 511,074 511,183 527,688 561,642 566,224 631,401 631,401 652,908 21,507 3.41 % Facility Management 408,250 509,547 497,642 547,402 475,083 683,197 693,282 717,688 34,491 5.05% Total General Gov 2,592,649 2,642,223 2,748,464 2,8435957 2,906,325 3,376,128 3,286,300 3,504,589 128,461 3.80 PUBLIC SAFETY Police Protection 2,936,467 2,962,551 3,053,526 3,183,610 3.114.623 3,287,046 3,287,046 3,337,486 50A40 1.53°% Fire Protection 1,285,417 1,353,209 1,445,167 1,391,252 1,508,854 1,562,026 1,663,349 1,841,166 279,140 17.87% Protective Inspection 424,247 443,712 436,790 493,955 519,183 533,561 530,311 529,812 (3,749) -0.70°% Emergency Management 17,495 16,320 18,060 18.608 17,227 26,844 22,994 29,003 2,159 8.04% Animal Control 3,700 2,544 2,809 4,368 2,347 5,950 4,950 5,950 0 0.00% Total Public Safety 4,667,326 4,778,336 4,956,352 5,091,793 5,162,234 5,415,427 5,508,650 5,743,417 327,990 PUBLIC WORKS Streets and Highways 686,086 597,963 656,194 615,450 686,978 773,241 783,741 868,864 95,623 12.37% Snow and Ice Removal 468,173 449,881 599,029 703,647 496,668 675,888 666,088 702,923 27,035 4.00% Street Signs 167,282 214,540 206,890 202,996 257,281 240,842 239,082 230,094 (10,748) -4.46°% Traffic Signals 27,919 36,151 33,857 26.422 23,045 40,000 37,000 40,000 0 0.00% Street Lighting 37,089 27,735 32,829 32,716 34,211 40,400 38,400 40,400 0 0.00% Street Lights - Billed 200,509 144,451 142,937 145,604 152,181 180,500 173,000 180,500 0 0.00% Park & Recreation 1,247,501 1,207,360 1,282,414 1,180,502 1,426,233 1,515,640 1,609,040 1,573,086 57,446 3.79% Natural Resource Preservatiot 7,255 6,503 5,158 16.831 9,821 14,383 16,383 14,311 (72) -0.50% Recycling 124,860 169,956 199,182 224,575 228,124 233,759 231,759 237,981 4,222 1.81% Total Public Works 2,966,674 2,854,540 3,158,490 3,148,743 3,314,542 3,714,653 3,794,493 35888,159 173,506 OTHER 283,077 764,875 241,940 15.001 1,012,779 95,928 913,000 245,928 150,000 156.37% Total Other 283,077 764,875 241,940 15,001 1,012,778 95,928 813,000 245,928 150,000 156.37°% GRAND TOTAL $ 10,509,726 $ 11,039,974 $ 11,105,246 $ 11,099,494 $ 12,395,879 $ 12,602,136 $ 13,402,443 $ 13,382,093 779,957 6.19% 52 CITY OF ANDOVER General Fund Five Year Financial Projections Adopted Projections Annual 2022 2023 2024 2025 2026 2027 Increase REVENUES Property Taxes $ 10,076,370 $ 10,378,661 $ 10,690,021 $ 11,010,722 $ 11,341,044 $ 11,681,275 3.00% License and Permits 535,500 551,565 568,112 585,155 602,710 620,791 3.00% Intergovernmental Revenues 817,284 841,803 867,057 893,069 919,861 947,457 3.00% Charges for Current Services 799,110 823,083 847,775 873,208 899,404 926,386 3.00% Fines and Forfeits 50,500 52,015 53,575 55,182 56,837 58,542 3.00% Interest Income 75,000 77,250 79,568 81,955 84,414 86,946 3.00% Miscellaneous Revenue 148,300 152,749 157,331 162,051 166,913 171,920 3.00% Transfers 197,081 202,993 209,083 215,355 221,816 228,470 3.00% EXPENDITURES General Government 3,504,589 3,557,158 3,610,515 3,664,673 3,719,643 3,775,438 1.50% Public Safety 5,743,417 5,887,002 6,034,177 6,185,031 6,339,657 6,498,148 2.50% Public Works 3,888,159 3,946,481 4,005,678 4,065,763 4,126,749 4,188,650 1.50% Other 245,928 249,617 253,361 257,161 261,018 264,933 1.50% 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 sheriffs contract. Health insurance premiums were originally projected to go up 26.8% in 2022; but with better experience the second half of year and some negotiations, it was reduced to 4.5%. The sheriff's contract, which represents $3.38m of the total budget in 2022, is reflecting a 1.53% increase. 53 General Fund General Government Administration Human Resources City Clerk Elections Financial Adminstration Information Systems Planning & Zoning Engineering Facility Management Total General Government Public Safety Fire Protection Protective Inspection Emergency Management Total Public Safety Public Works Streets & Highways Snow & Ice Street Signs Parks & Recreation Natural Resource Preservation Recycling Total Public Works Total General Fund CITY OF ANDOVER 2022 FTE Summary 2019 2020 2021 2022 2019 2020 2021 2022 Actual Actual Current Budget Actual Actual Current Budget Special Revenue Funds Community Center 3.32 3.32 4.32 4.32 1.15 1.10 1.10 1.10 Drainage & Mapping - - 0.10 0.10 0.03 0.08 0.08 0.08 LRRWMO 0.07 0.09 0.10 0.10 1.89 1.89 1.89 1.89 ROW Mgmt / Utility 0.08 0.08 0.17 0.17 0.15 0.15 0.15 0.15 3.47 3.49 4.69 4.69 1.94 2.01 2.01 2.01 0.91 0.91 0.91 0.91 Enterprise Funds 4.05 4.05 4.05 4.05 Water 4.86 5.02 4.79 4.79 4.48 4.46 4.56 4.56 Sewer 2.80 3.23 3.55 3.55 0.96 0.87 0.87 0.87 Storm Sewers 2.08 1.90 2.60 2.58 15.56 15.52 15.62 15.62 9.74 10.15 10.94 10.92 Internal Service Funds 3.21 4.35 4.35 4.35 Central Equipment 3.19 3.39 3.34 3.34 4.03 3.93 4.40 4.40 Risk Mgmt 0.10 0.10 0.10 0.10 0.05 0.05 0.03 0.03 3.29 3.49 3.44 3.44 7.29 8.33 8.78 8.78 Grand Total 58.50 59.50 62.00 62.00 5.22 5.65 5.20 5.79 3.79 1.82 2.55 2.55 1.46 1.58 1.51 1.44 7.80 8.56 8.44 7.94 - - 0.02 0.02 0.88 0.91 0.81 0.81 19.15 18.52 18.53 18.55 42.00 42.37 42.93 42.95 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2019 & 2020 are based on actual hours charged to various departments. 54 CITY OF ANDOVER 2022 Capital Improvement Plan Projects By Department - Use of Funds Community Center Park & Recreation - Projects Replacement - Walk Behind Floor Scrubber $ 15,000 Annual Miscellaneous Projects $ 25,000 Exterior Caulking 50,000 Pine Hills North - Phase II Parking Lot Improvements 400,000 New - Scissor Lift 15,000 Dog Park Parking Lot and Trail Paving 37,500 80,000 Pine Hills South - Parking Lot Paving 67,000 Oak Bluff - New Basket Ball Court 10,000 Emergency Management 539,500 Replacement - Emergency Sirens 50,000 Emergency Operations Center Improvement 15,000 Sanitary Sewer 65,000 Replacement - One Ton Truck w/ Plow #78 85,000 Engineering Storm Sewer New Development Projects 185,000 Storm Sewer Improvements 68,000 Pedestrian Trail Maintenance 60,000 Replacement - Pick Up Truck #6 50,000 Streets - Equipment 295,000 New - Dump Truck w/ Snow Equipment 250,000 Replacement - Asphalt Roller 20,000 Facility Management Replacement - Dump Truck w/ Snow Equipment #198 255,000 Annual Parking Lot Maintenance / Replacement 275,000 525,000 Replacement - Roof Top Package Unit PW 45,000 Replacement - Furnace CH 8,000 Streets - Roadways 328,000 Annual Street Seal Coat Project 190,000 Annual Pavement Markings 60,000 Fire Curb, Sidewalk and Ped Ramp Replacement 105,000 New - First Response Vehicle 70,000 Municipal State Aid Routes / New & Reconstruct 1,600,000 New - Digital Fire Extinguisher Training System 12,000 Annual Street Reconstruction 3,400,000 Replacement - 800 MHz Radios 50,000 Gravel Road Improvement 19,000 Replacement - Grass / Rescue Vehicle 275,000 Street Mill & Overlays 2,000,000 New - Mobile CAD 12,000 Municipal State Aid Routes / Mill & Overlay 170,000 419,000 Bunker Lake Blvd Concrete Median 150,000 7,694,000 Park & Recreation - Operations Replace/Repair Play Structures - Various Parks 100,000 Water Replace/Repair Major Park Projects - Various Parks 35,000 Recondition & Paint Water Tower #2 1,655,000 Replacement - Cushman #546 13,000 Residential Meter Replacement 100,000 Replacement - Tractor #515 50,000 Water Main Gate Valve Rehabilitation 200,000 New - Zero -Turn Mower 10,000 WTP Valve Actuator Replacement 52,000 Replacement - Large Capacity Mower #585 130,000 2,007,000 $ 338,000 Grand Total $ 12,443,500 55 Assessments Capital Equipment Reserve Community Center Operations Construction Seal Coating Fund Economic Development Authority Equipment Bond Facility Maintenance Reserve G.O. Bond General Fund Grant Municipal State Aid Funds Park Dedication Funds Road & Bridge Fund Sanitary Sewer Fund Sewer Trunk Fund Storm Sewer Fund Water Fund Water Trunk Fund CITY OF ANDOVER 2022 Capital Improvement Plan Sources of Funds 1,431,500 482,500 80,000 10,000 150,000 785,000 328,000 4,150,000 135,000 287,000 1,588,500 222,000 424,000 42,500 125,000 110,500 177,000 1,915,000 Total $ 12,443,500 56 CITY OF ANDOVER, MINNESOTA 2022 ANNUAL BUDGET The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and park and recreation. Revenue is recorded by source: i.e., general property taxes, licenses and permits, fines, charges for services, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. 57 This page left blank intentionally. 58 City of Andover 2022 Budget - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adapted Estimate Adopted Description 202(t � ;2021 2021, 2022, Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 9,363,451 $ 9,654,518 $ 9,654,518 $ 8,860,491 9,303,234 892,279 861,179 1,070,899 47,630 148,974 172,062 12,496,257 190,688 12,686,945 22,050,396 5,225,070 619,763 4,027,267 1,350,906 172,872 11,395,878 1,000,000 12,395,878 9,594,493 436,450 813,298 752,360 50,250 75,000 138,850 11,860,701 212,031 12,072,732 21, 727,250 5,573,315 803,978 4,475,905 1,613,938 135,000 12, 602,136 12, 602,136 9,594,493 752,050 887,216 887,159 51,200 75,000 149,267 12,396,385 212,031 12,608,416 22,262,934 5,548,600 842,887 4,470,836 1,595,003 195,117 12,652,443 750,000 13,402,443 10,076,370 535,500 817,284 799,110 50,500 75,000 148,300 12,502,064 197,081 12, 699,145 21,559,636 5,928,069 825,015 4,577,595 1,756,414 145,000 13,232,093 150,000 13,382,093 Fund Balance, December 31 $ 9,654,518 $ 9,125,114 $ 8,860,491 $ 8,177,543 Change in Fund Balance $ 291,067 $ (529,404) $ (794,027) $ (682,948) 3% -5% -8% -8% 59 Fund: 0101- General Cost Center: 41100 Activity Description The City Council exercises the legislative power of the City by which all matters of policy are determined, as provided by the form of government. Council exercises budgetary control through the adoption of the annual budget, and approval of claims against the City treasury. The Council also approves capital improvement projects through the adoption of a five year capital improvement plan identifying the City's infrastructure needs. Council appoints various citizen committees to render advice on legislative and city issues. Council members respond to constituent concerns and questions by working with City administration to address community service issues. Process Used As provided by statutory authority, Council performs a legislative, regulatory and quasi- judicial function. The Council meets regularly to consider ordinances, resolutions, and other such actions as may be required by law and circumstance. Various concerns that are brought before Council for consideration are reviewed and forwarded to staff for an appropriate response. The City Administrator and staff attend meetings to provide information and other forms of support for Council deliberations. Service Expenditure Hi2hli2hts No major changes planned for 2022. Performance Measures Council Meetings Actual 2020 24 Special Workshops 12 Agenda Items - Special Workshops 70 EDA Meetings 11 Agenda Items - EDA 75 Current Budgeted 2021 2022 m m Department: Mayor & Council Director/Manager: City Council Actual Current Budgeted Staffing Levels 2020 2021 2022 One Mayor and Four Council Members Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 55,637 $ 59,878 $ 59,878 Supplies & Materials 29,336 32,858 34,190 Other Services / Charges 2,655 2,779 2,779 Purchased Services 7,891 9,600 10,500 TOTAL 95,519 105,115 107,347 Service Expenditures By Cate6ory 24 12 Expenditures Per Capita 70 Population - Estimates 12 Monthly 70 Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials oOther Services / Charges oPurchased Services Actual Current Budgeted 2020 2021 2022 33,448 33,650 33,850 $ 0.24 $ 0.26 $ 0.26 $ 2.86 $ 3.12 $ 3.17 60 Fund: 0101 -General Cost Center: 41200 Activity Description The City Administrator oversees all city operations and activities as directed by the City Council. Primary responsibilities include directing the administration of City affairs; enforcing laws, City ordinances and resolutions as adopted by the governing body. Ensures that services are delivered in a cost-effective, efficient and high quality manner. Oversees the preparation of Annual City Budget and Capital Improvement Plan for Council adoption; Responsible for keeping Council fully advised as to the financial condition and needs of the organization. Process Used Policy goals and direction are translated in to management objectives to be administered and delegated to appropriate City departments for implementation and achievement. Through reporting relationships established by City ordinance, department directors are responsible to the administrator for properly managing and overseeing the operations of their department. A management team consisting of key department directors works with the administrator to resolve issues, review projects and address changing community service dynamics. Service Expenditure Hiuhli!hts The major increase for Budget 2022 is in Personal Services due to a COLA and an increase in employee benefits. Performance Measures Regular Council Agenda Items Actual 2020 357 Current 2021 347 Budgeted 2022 350 Council Workshops Attended 12 9 12 Council Meetings Attended 24 22 24 Staff Meetinas Held 52 50 52 Department: Administration Director/Manager: City Administrator Actual Current StaffinLy Levels 2020 2021 FTE Equivalents 1.10 1.10 Actual Current Service Expenditures 2020 2021 Personal Services $ 166,434 $ 208,626 Supplies & Materials 4,820 9,600 Other Services / Charges 16,504 16,818 Purchased Services - - TOTAL $ 187,758 $ 235,044 Service Expenditures By Category Budgeted 2022 1.10 Budgeted 2022 $ 210,524 11,000 16,918 $ 238,442 ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2020 2021 2022 Population - Estimates 33,448 33,650 33,850 Monthly $ 0.47 $ 0.58 $ 0.59 Annual $ 5.61 $ 6.98 $ 7.04 ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 61 Fund: 0101 -General Cost Center: 41210 Activitv Description The City publishes a newsletter containing articles regarding important municipal service news. Funding for publication is provided through general tax levies and is distributed to every household and business located within Andover's corporate boundaries. Process Used The City has an active newsletter committee comprised of Council members, and staff who meet to determine newsletter articles, format and coordinate the development of the newsletter publication. Each issue is reviewed by City departments to ensure accuracy and appropriate content. Starting in late 2017, the newsletter is now assembled in-house and contracted out for printing and distribution to all households and businesses. Articles selected for publication are intended to provide the public with timely, newsworthy and customer service oriented information. Each Council member and the City administrator prepare news articles focusing on significant issues affecting City government. Service Expenditure Hiuhli!hts Newsletter setup, printing and postage costs are increasing slightly. Actual Current Budgeted Performance Measures 2020 2021 2022 Number of Meetings Held 6 6 6 Newsletters Published 6 6 6 Public Circulation Staff Preparation Hours 11,000 100 Department: Newsletter Director/Manager: Newsletter Coordinator Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials 12,336 12,800 13,500 Other Services / Charges - - - Purchased Services 9,820 11,500 13,800 TOTAL $ 22,156 $ 24,300 $ 27,300 Service Expenditures By Catei!ory 11,000 11,000 Expenditures Per Capita 100 100 Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted $ 0.06 $ 0.06 $ 0.07 $ 0.66 $ 0.72 $ 0.81 62 Fund: 0101 - General Cost Center: 41230 Activity Description Personnel activities support the City's human resource needs in the areas of recruitment, selection, development, training and assessment of organizational needs. Employee benefits, compensation administration, enforcement of personnel policies, and compliance with state and federal employment laws are essential functions of the activity. Labor relations activities such as negotiations, contract administration, grievance processing and costing of benefits provide the City with the ability to interpret and manage labor components of providing City services. Conducting and facilitating employee training in the areas of customer service, safety training and programs designed to enhance the productivity and performance of the organization. New ACA requirements will also increase benefits administration. Process Used Staff needs are continually reviewed by City departments, and annually appropriated for in the budget process through review and justification factors. Human resources will facilitate this through advertisements, testing and interviews, and processing of new employees. Personnel functions include training, interviewing, record processing and management, benefits, job description development and analysis, pay equity compliance, labor negotiations, drug testing, and ensuring compliance with state and federal laws. Service Expenditure Hi2hli2hts The Human Resources Manager is allocated out to various departments based on FTE's. Budgeted 2022 includes funding for any market rate adjustments that are approved by the City Council. As more employees become eligible for retirement, an increase in recruitment is expected. Actual Current Budgeted Performance Measures 2020 2021 2022 Workers Comp Mod Factor 0.82 0.74 0.87 Premium change in health insurance 11.74% 15.50% 4.50% Hours spent on labor relations 0 20 0 Hours spent on benefit administration 50 50 50 Employees hired (Seasonal/FT/PT) 18 22 30 Department: Human Resources Director/Manager: Human Resources Manager Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 0.08 0.08 0.08 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 8,172 $ 10,477 $ 9,936 Supplies & Materials 2,599 4,325 4,475 Other Services / Charges 4,295 4,500 5,000 Purchased Services 1,115 8,500 15,250 TOTAL 16,181 27,802 34,661 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services OSupplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2020 2021 2022 33,448 33,650 33,850 0.04 $ 0.07 $ 0.09 0.48 $ 0.83 $ 1.02 63 Fund: 0101 -General Cost Center: 41240 Activity Description The City Attorney provides City Council and staff with research and support on issues of a legal matter. The City Attorney also serves as the chief prosecuting attorney for the City on offenses committed within the City of Andover. The City Attorney attends Council and staff meetings and serves in an advisoral capacity to all City departments on matters coming before the City Council. Process Used Attorney services are provided to the City through an annual contract with the Hawkins & Baumgartner, P.A. legal firm. Service Expenditure Highlights Budgeted 2022 includes a 3% increase; 2% for the retainer contract and 1 % for other billable services. Department: Attorney Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 195,721 205,000 212,041 TOTAL $ 195,721 205,000 $ 212,041 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual Actual $ vV0.49 $ 5.85 ®Personal Services ®Supplies & Materials •Other Services / Charges •Purchased Services Current Budgeted $ vvvv 0.51 $ 0.52 $ 6.09 $ 6.26 -------------------------------------------------------------------------------------- ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 64 Fund: 0101 - General Cost Center: 41300 Activity Description The City Clerk's office prepares the agenda and materials for council meetings; is responsible for special assessments, elections, homestead filing; licensing of alcohol and tobacco, garbage haulers, dogs, peddlers, tree trimmers; signs all official papers; is the keeper of the official city records including resolutions, minutes, ordinances, etc. Assists residents by telephone, e-mail and in person. Process Used Activities are conducted pursuant to city ordinances, policies and state law. Service Expenditure Highlights In Budgeted 2022, the increase is due to COLA and employee benefits. Actual Current Budgeted Performance Measures 2020 2021 2022 Council packets (hardcopy) 432 388 400 Council packets (emailed) 1,728 1,560 1,500 Licenses Issued 181 219 200 Department: City Clerk Director/Manager: City Clerk Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 1.89 1.89 1.89 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 139,116 $ 148,019 $ 156,951 Supplies & Materials 1,076 2,050 2,250 Other Services / Charges 25,877 25,877 25,877 Purchased Services 152 - 200 TOTAL 166,221 175,946 185,278 Service Expenditures By Category ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Assessment Searches 250 292 200 Expenditures Per Capita 2020 2021 2022 False Alarm Letters 174 152 150 Population - Estimates 33,448 33,650 33,850 Monthly $ 0.41 $ 0.44 $ 0.46 Annual $ 4.97 $ 5.23 $ 5.47 ------------------------------------------------------------------------------------------- ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 65 Fund: 0101 -General Cost Center: 41310 Activitv Description Conduct State and General Elections in accordance with State Law. Process Used Notify voters of their precincts; administer filings for local offices; proof ballots; post and publish notices; hire sufficient number of judges; arrange for judges' training; notify polling places of elections; conduct public accruary tests to ensure machine accuracy and conduct absentee voting at city hall. Service Expenditure HiL!hlij!hts Actual 2020 was an election year. Performance Measures Total number of voters Number of Precincts Registered voters Actual 2020 Current 2021 Budgeted 2022 20,905 Non election 18,000 10 year 10 23,545 23,545 Department: Elections Director/Manager: City Clerk Grfual riirrpnf Rurinpfprl Staffiniz Levels FTE Equivalents Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 74,573 $ 15,000 $ 63,388 Supplies & Materials 8,874 - 2,000 Other Services / Charges - - - Purchased Services 8,196 7,000 11,800 TOTAL 91,643 22,000 77,188 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services USupplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2020 2021 2022 33,448 33,650 33,850 $ 0.23 $ 0.05 $ 0.19 $ 2.74 $ 0.65 $ 2.28 66 Fund: 0101 -General Cost Center: 41400 Activity Description This department is responsible for administration of the City's financial affairs. This includes maintaining accounting records for all operations, custody and investment of funds , supervision of revenue collection and disbursements of city monies, administration of debt, payroll function, audit and budget preparation. Process Used The financial affairs are conducted in compliance with federal law, state law, generally accepted accounting principles, and various city policies. Service Expenditure Hiszhli2hts No major changes planned for Budgeted 2022. COLA and employee benefits continue to increase every year. Actual Current Performance Measures 2020 2021 Promote use of electronic methods of processing utility payments and payroll: Utility payments made electronically 58% 65% Budgeted 2022 70% Payroll checks issued 40 0 0 Payroll - direct deposit 2,026 2,250 2,300 Utility accounts - Storm Water 10,912 Utility accounts - Water 6,906 Utility accounts - Sewer 7,768 Utility accounts - Street Lights 7,610 Number of delinquent accounts 528 Department: Financial Administration Director/Manager: Finance Director Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents 2.01 2.01 2.01 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 233,394 $ 252,018 $ 264,266 Supplies & Materials 6,225 7,200 9,200 Other Services / Charges 24,258 29,300 32,900 Purchased Services 30,624 30,600 31,100 TOTAL $ 294,501 $ 319,118 $ 337,466 Service Expenditures By Catel!Ory 11,036 11,100 7,018 7,100 7,880 7,980 Expenditures Per Capita 7,657 7,700 Population - Estimates 670 500 Monthly Annual ADOPTED 2022 BUDGET CITY Of ANDOVER, MINNESOTA Actual $ 0.73 $ $ 8.80 $ ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Current Budgeted 2021 2022 33,650 33,850 0.79 $ 0.83 9.48 ---------------- $ 9.97 67 Fund: 0101 - General Cost Center: 41410 Activity Description This department is responsible for assessment for all real and personal property for valuation purposes. The City contracts with Anoka County for this service. Process Used The assessed valuation is determined by inspections of real and personal property within the city. The Assessor follows state statutes and market trends to determine taxable market values. Service Expenditure Hi2hli2hts Budgeted 2022 includes a slight increase in the contract with Anoka County for assessing services. Current 2021 was reduced due to some service issues. Actual Currant Rurinatad Performance Measures 2020 Residential Parcels Assessed 10,679 Commercial Parcels Assessed 170 Apartments Assessed 22 Unimproved Parcels Assessed 633 Department: Assessing Director/Manager: Finance Director Arfiml Girranf Rurinafarl Staffing Levels FTE Equivalents Actual Service Expenditures 2020 Personal Services $ - Supplies & Materials - Other Services / Charges - riirron4 Rurina+arl Purchased Services 154,482 135,000 161,000 TOTAL 154,482 135,000 161,000 Service Expenditures By Category 164 165 Expenditures Per Capita 22 22 Population - Estimates 688 650 Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER. MINNESOTA ®Personal Services ®Supplies & Materials oOther Services / Charges OPurchased Services Actual Current Budgeted 2020 2021 2022 33,448 33,650 33,850 $ 0.38 $ 0.33 $ 0.40 $ 4.62 $ 4.01 $ 4.76 68 Fund: 0101 -General Cost Center: 41420 Activitv Description This department is responsible for the continued operations of the city's information technology equipment. The department also provides assistance to computer users to provide timely, accurate and meaningful data for program monitoring and decision -making. Process Used - City website updated and monitored daily - Train employees as needed on new and existing software - Network data backup monitored daily - Maintain phone systems including voice mail and assist in future upgrades - Maintain all City servers and remote users - Research new technology for current and future growth - Purchase new equipment as needed - Maintain SPAM firewall for unauthorized emails - Maintain network security for prevention of unauthorized access Service Expenditure Hiuhli!hts No major changes planned for Budget 2022. Costs for IT related items and services continue to be on the rise. Performance Measures Number of PC's / Servers Actual Current Budgeted 82 80 81 Number of Printers 25 25 26 Number of Phones Maintained 75 75 Department: Information Systems Director/Manager: City Administrator Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents 0.91 0.91 0.91 Actual Current Budaeted Service Expenditures 2020 2021 2022 Personal Services $ 118,068 $ 123,618 $ 127,101 Supplies & Materials 31,502 33,840 39,120 Other Services / Charges 38,133 53,280 57,880 Purchased Services - 1,500 2,500 TOTAL $ 187,703 $ 212,238 $ 226,601 Service Expenditures By Catei!Ory 75 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budaeted $ 0.47 $ 0.53 $ 0.56 $ 5.61 $ 6.31 $ 6.69 69 Fund: 0101 -General Cost enter: 41500 Activitv Description Review residential and commercial developments for conformance with City's Comprehensive Plan, Ordinances, and Development Policies. Prepare ordinances 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 Process Used The Planning Department processes development proposals, reviews plats, reviews commercial site plans and responds to citizens' requests for rezonings, special use permits, comprehensive plan amendments and variances. The Zoning Ordinance is the primary source of information. However, the Andover Review Committee and the City Attorney are also utilized before applications are processed before the Planning and Zoning Commission and City Council. Service Expenditure Highlights Budgeted 2022 Personal Services changed due to a change in benefits and COLA. Actual Current Budgeted Performance Measures 2020 2021 2022 Subdivisions Processed 9 4 5 Commercial Site Plans Processed 0 0 2 Conditional Use Permits 2 7 3 Code Amendments 10 3 2 Comp Plan Amendments 1 3 0 Rezonings 0 5 3 Variances 0 1 1 Lot Splits 1 1 2 P&Z Agendas 10 17 16 Vac of Easements 7 6 3 IUP - Interim Use Permit 2 0 2 Staffing Levels FTE Equivalents Service Expenditures Personal Services Supplies & Materials Other Services / Charges Purchased Services TOTAL Department: Planning and Zoning Director/Manager: Community Development Director Actual Current Budgeted 2020 2021 2022 4.05 4.05 4.05 Actual Current Budgeted 2020 2021 2022 $ 435,967 $ 473,162 $ 495,219 4,633 10,800 14,950 6,715 8,392 8,800 5,818 7,700 7,700 453,133 500,054 526,669 Service Expenditures By Category Actual Expenditures Per Capita 2020 Population - Estimates 33,448 Monthly $ 1.13 Annual $ 13.55 ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Current 2021 33,650 $ 1.24 $ 14.86 Budgeted $ 1.30 $ 15.56 Abatements 4 6 4 Rental Licenses 271 279 287 -------------------------------------------------------------------------------------- ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 70 Fund: 0101 -General Cost Center: 41600 Activitv Description The Engineering Division provides review, design and construction related support for the development and maintenance of the City Infrastructure. The Department maintains and distributes information relative to "as -constructed" drawings for the City Infrastructure. Engineering support is provided for other City activities as needed. The department also provides project management and inspection related services for the City. Process Used Engineering support is provided for the development and long-term maintenance of the City Infrastructure (i.e. water, sanitary sewer, storm sewer, water main, streets, trails, parks, facilities, etc.). Engineering reviews plans for all commercial and residential development to ensure compliance with City standards. Service Expenditure Highlights Budgeted 2022 Personal Services change is largely due to a COLA and an increase in health insurance costs. Actual Current Budgeted Performance Measures 2020 2021 2022 1. Number of Projects Constructed 10 7 9 2. Number of Projects Reviewed: Prelimary Plats 1 5 3 Commercial Site Plans 0 2 2 3. Number of Utility permits issued 102 Department: Engineering Director/Manager: City Engineer Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 4.46 4.56 4.56 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 533,574 $ 582,433 $ 601,308 Supplies & Materials 10,428 19,200 19,200 Other Services / Charges 21,988 27,468 30,100 Purchased Services 234 2,300 2,300 TOTAL 566,224 631,401 652,908 Service Expenditures By Category 101 100 Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Actual Current Budgeted $ 1.41 $ 1.56 $ 1.61 $ 16.93 $ 18.76 $ 19.29 71 Fund: 0101 -General Cost Center: 41900 Activity Description Responsible for the custodial, mechanical, structural and ground maintenance of the City Hall and Public Works campus, park buildings and fire stations. Process Used The facilities are to be maintained in a healthy, safe and sanitary condition and to work toward facility designs that will maximize operational efficiency while projecting a positive public image and work environment. Service Expenditure HiLyhliuhts No major changes planned for Budget 2022, utility costs are continue to rise. Current 2021 included some budget carryforward money from 2020 to continue relamping city buildings to LED. Performance Measures Buildings Parking Lots Actual 16 Department: Facilities Management Director/Manager: Finance Director Actual Current Budgeted Staffinu Levels 2020 2021 2022 FTE Equivalents 0.87 0.87 0.87 Actual Current Budaeted Service Expenditures 2020 2021 2022 Personal Services $ 95,279 $ 109,227 $ 112,849 Supplies & Materials 14,242 37,580 41,810 Other Services / Charges 226,101 304,135 351,989 Purchased Services 139,461 242,340 211,040 TOTAL $ 475,083 $ 693,282 $ 717,688 Service Expenditures By Category Current Budgeted 2021 2022 22 22 Expenditures Per Capita 16 16 Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Actual Current Budaeted $ 1.18 $ 1.72 $ 1.77 $ 14.20 $ 20.60 $ 21.20 72 Fund: 0101 -General s enter: 42100 Activity Description Enforce state laws and city ordinances as directed to provide the public with law enforcement services in the area of patrol, investigation, school liaison, crime prevention and traffic control. The Anoka County Sheriff's office is responsible for recognizing public safety issues and appropriately reacting to these issues through appropriate law enforcement channels and means. Process Used The City of Andover contracts with the Anoka County Sheriff's Office to provide a wide range of public safety and law enforcement services. The Sheriff's Office serves as a member of the City's management team, and works with the City to address a wide range of public safety concerns and issues. Responses to citizen service requests are handled by deputies in accordance with established procedures and public safety circumstances. The Sheriffs Office also provides school liaison officers in community schools, prepares news articles and performs a variety of community safety programming. Service Expenditure Highlights Budgeted 2022 includes a 1.53 percent contract increase with no change in service. Actual Current Budgeted Performance Measures 2020 2021 2022 Number of Part I & II Offenses 859 899 850 Department: Police Protection Director/Manager: City Administrator Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges - - - Purchased Services 3,114,623 3,287,046 3,337,486 TOTAL 3,114,623 3,287,046 3,337,486 Service Expenditures By Catej!ory ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Number of Calls for Services 14,080 13,114 13,500 Expenditures Per Capita Population - Estimates Monthly Annual Actual 2020 33,448 $ 7.76 $ 93.12 Current 2021 33,650 $ 8.14 $ 97.68 Budgeted 2022 33,850 $ 8.22 $ 98.60 Number of Traffic Citations 908 884 850 Number of Patrol Hours 29,200 29,200 29,200 Staff Meetings Attended 50 50 50 Number of School Liaison Hours 4,160 4,160 4,160 ADOPTED 2022 BUDGET CITY Of ANDOVER, MINNESOTA 73 Fund: 0101 -General Cost enter: 42200 Activitv Description The fire department responds to all fire and emergency medical incidents in the City of Andover. Paid on -call firefighters are alerted to an incident via a pager dispatched through the Anoka County Central Communications System. The fire department is responsible for performing new building plan reviews and existing building inspections to ensure compliance with State and Federal Fire Codes and Standards. The fire department also provides public education and fire safety information to residents. In addition, the Fire Chief is the City Emergency Manager, overseeing all City disaster and contingency plans. Process Used Paid on -call firefighters are professionally trained, each averaging over 145 hours a year to help maintain proficiency in their skills used for responding to fire and medical calls. 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 investigations. Public education demands have rapidly increased over the past five years. Service Expenditure Highlights Budget 2022 includes the continual increase to the duty crew program, both in funding and additional service hours/staffing. Current 2021 included grant funding for equipment and additional training opportunities. Performance Measures Fire Responses Actual 2020 375 Current 2021 404 Budgeted 2022 448 Emergency Medical Responses 667 1,340 1,500 Fire Inspections 79 72 100 Fire Investigations 25 37 42 Public Fire Education (hours) 112 97 112 Customer Contacts 6,297 12,593 13,764 Total Firefighter Training Hours 3,886 6,572 7,117 Average Response Time 8.0 min 9.2 min 8.5 min Department: Fire Protection Director/Manager: Fire Chief Actual Current Budgeted Staffine Levels 2020 2021 2022 FTE Equivalents 4.35 4.35 4.35 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 1,133,494 $ 1,147,119 $ 1,364,226 Supplies & Materials 125,570 241,559 181,290 Other Services / Charges 221,778 229,104 253,900 Purchased Services 28,012 35,450 41,750 Capital Outlay - 10,117 - TOTAL $ 1,508,854 1,663,349 1,841,166 Service Expenditures By Catej!ory Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services mSupplies & Materials GOther Services I Charges GPurchased Services ®Capital Outlay Actual Current 2020 2021 33,448 33,650 $ 3.76 $ 4.12 $ 45.11 $ 49.43 Budgeted 2022 33,850 $ 4.53 $ 54.39 74 Fund: 0101 -General Cost Center: 42300 Activitv Description Review and process building permit applications, perform on -site inspections of residential and commercial construction and ensure that all construction activity is in compliance with state and city building and fire codes. Process Used Building permit applications are reviewed, plan checks completed, and construction fees collected. Upon issuance of a permit, the person doing the work calls in for inspections at various stages of construction. When construction is completed in accordance with approved standards, a Certificate of Occupancy is issued. Service Expenditure Highlights Staff restructuring took place in 2021 moving a department head into a part-time position and increasing purchased services for additional expertise when needed. Artiial riirrant Riidnatad Performance Measures Residential Staffinh Levels FTE Equivalents Department: Protective Inspection Director/Manager: Building Official Arfiml rnrrant Midnatorl Actual rurra_nt Rndnatad Service Expenditures 2020 2021 2022 Personal Services $ 424,301 $ 436,567 $ 425,890 Supplies & Materials 10,613 17,050 17,050 Other Services / Charges 26,479 32,194 34,872 Purchased Services 57,790 44,500 52,000 TOTAL $ 519,183 $ 530,311 $ 529,812 Service Expenditures By Catej!Ory New Construction 139 140 80 Other Permits 1,552 1,557 1,300 Commercial, Industrial, etc New Construction 0 0 3 Expenditures Per Capita Other Permits 25 22 18 Population - Estimates Trades & Misc Permits 2,983 3,427 2,500 Monthly Permits Initiated Online 65% 60% 55% Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services USupplies & Materials OOther Services / Charges OPurchased Services Actual rurrant Rndnatad I zv 1.61 l.Ju $ 15.52 $ 15.76 $ 15.65 75 Fund: 0101- General Cost Center: 42400 Activity Description Maintain City's emergency warning system. Repair, replace and maintain fourteen (14) warning sirens throughout the city to ensure proper activation during storm, civil and emergency conditions. All sirens are visually checked every April to confirm sirens are operating properly. Process Used If a siren is found to be dysfunctional, a service call is placed, a repair -person comes out, necessary repairs are completed. The City replaced all sirens in 2002 and 2003 into battery back-up units. Siren warning tests are performed monthly to verify activation and educate citizens regarding the City's Emergency Warning System. Service Expenditure HiEhliEhts Budget 2022 includes increased maintenance costs due to the additional sirens added. Actual Current Budgeted Performance Measures 2020 2021 2022 Siren tests throughout the severe weather season 4 4 4 State-wide siren tests 12 12 12 Number of sirens 14 14 14 Department: Emergency Management Director/Manager: Building Official Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 0.05 0.03 0.03 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 7,461 $ 3,310 $ 3,469 Supplies & Materials 875 2,000 5,850 Other Services / Charges 5,002 9,684 9,684 Purchased Services 3,889 8,000 10,000 TOTAL 17,227 22,994 29,003 Service Expenditures By Cate6ory ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2020 2021 2022 Population - Estimates 33,448 33,650 33,850 Monthly $ 0.04 $ 0.06 $ 0.07 Annual $ 0.52 $ 0.68 $ 0.86 ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 76 Fund: 0101 -General Cost enter: 42500 Activitv Description The enforcement of City Code Title 5 relating to dogs and cats. Process Used Letters are sent to dog and cat owners who allow their animals to run at large warning them that they are in violation of the City's ordinance. If the behavior continues, a ticket is issued by the Sheriff's office to the owner citing them for a misdemeanor. The City contracts with an independent contractor to provide animal control services. The City, in conjunction with a veterinarian, holds a rabies vaccination clinic every spring. City staff also issue licenses for dogs in the city. Service Expenditure Highlights A contract increase is planned for Budgeted 2022. The annual pet clinic was cancelled in 2021 due to covid concerns. Actual Current Budgeted Performance Measures 2020 2021 2022 Number of dogs licensed 219 203 210 Number of animals confined 59 79 75 Department: Animal Control Director/Manager: City Clerk Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials 103 150 150 Other Services / Charges 200 200 200 Purchased Services 2,044 4,600 5,600 TOTAL 2,347 4,950 5,950 Service Expenditures By Category ... „ ®Personal Services ,<w ®Supplies &Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2020 2021 2022 Population - Estimate 33,448 33,650 33,850 Monthly $ 0.01 $ 0.01 $ 0.01 Annual $ 0.07 $ 0.15 $ 0.18 ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 77 Fund: 0101 -General Cost Center: 43100 Activitv Description The Streets and Highways Department maintains all City streets to minimize deterioration. Maintenance includes seal coating, crack sealing, pothole patching, sweeping, gravel road maintenance and wash and seal bridges. Along with road maintenance, this department is responsible for mowing ditches and trimming boulevard trees. Process Used Staff is assigned detailed work, followed by inspections. Equipment and personnel are managed to accomplish maintenance activities. Service Expenditure Hipbli2hts Personal Services fluctuates based on the number of snow events. If staff is plowing, their time is charged to Snow & Ice, otherwise time is charged Streets & Highways. Budget 2022 includes a departmental reorganization that combined a management position allowing for an additional maintenance position. Performance Measures Asphalt Streets Maintained (miles) Actual 2020 202 Current 2021 205 Budgeted 2022 205 Gravel Roads Maintained (miles) 6.5 6.5 6.5 Cul-de-sacs & Deadends Maintained 358 363 363 Road Markings/Striping (intersections) 184 184 184 Street Sweeping (miles) 410 410 410 Gravel Usage (tons) 1,465 1,400 1,400 Asphalt Usage (tons) 826 590 800 Pothole Patching (tons per day) 8.49 6.10 8.00 Spray Patcher - Rock (tons) 260 210 250 Spray Patcher - Oil (gallons) 1,407 1,114 1,400 Tree Trimmina (miles per week) 0.75 0.75 0.75 Department: Streets & Highways Director/Manager: Street Supervisor Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents 5.65 5.20 5.79 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 492,939 $ 508,405 $ 577,147 Supplies & Materials 86,266 93,450 95,295 Other Services / Charges 91,435 111,086 124,622 Purchased Services 16,338 70,800 71,800 TOTAL $ 686,978 $ 783,741 $ 868,864 Service Expenditures By Catei!ory Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA Actual $ vv1.71 $ 20.54 ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Current Budgeted AAAA AAAA $ vv1.94 $ 23.29 $ v 2 14 $ 25.67 78 Fund: 0101 -General Cost Center: 43200 Activitv Description All Public Works Departments provide snow removal services for 202 miles of city streets and 358 cul-de-sacs. The goal is to provide convenient, reasonably safe travel and to prevent deterioration of the streets due to winter conditions. Process Used Snowplows, equipped with underbody plows, and salt brine sanders are used to clear city streets. The streets are cleared on a systematic basis as soon as practical after a snowstorm per city policy. Service Expenditure Hiuhliihts Personal Services are allocated based on time spent removing snow and ice from roads, trails, and/or parking lots. The increase in Budgeted 2022 is due to Personal Services (health insurance and COLA) and Other Services / Charges (central equipment allocation). Actual Current Budgeted Performance Measures 2020 2021 2022 Miles of streets plowed 202 205 205 Cul-de-sacs 358 363 363 Department: Snow & Ice Director/Manager: Street Supervisor Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents 1.85 2.55 2.55 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 198,884 $ 304,681 $ 312,780 Supplies & Materials 113,682 154,550 165,150 Other Services / Charges 178,753 205,857 223,993 Purchased Services 5,349 1,000 1,000 TOTAL $ 496,668 $ 666,088 $ 702,923 Service Expenditures By Catej!Ory Sand/Salt Usage (tons) 1,200 1,500 1,800 Expenditures Per Capita Population - Estimates Monthly Annual Brine Usage (gal) 4,800 6,000 7,200 Annual Snowfall (inches) 36 40 45 Plowing a 1-2" Snow event (hrs) 6 6 6 Plowing a 2-4" Snow event (hrs) 8.5 8.5 8.5 Plowing a 4" + Snow event (hrs) 12 12 12 ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA Actual 2020 33,448 $ 1.24 $ 14.85 ®Personal Services ®Supplies & Materials oOther Services / Charges OPurchased Services Current Budgeted $ 1.65 $ 19.79 $ 1.73 $ 20.77 79 Fund: 0101 -General Cost Center: 43300 Activitv Description Installs new signage and replaces/repairs existing signs. All signage for streets and highways are in compliance with Federal, State, County and City guidelines. The ultimate goal is the safety of pedestrians and to provide traffic directional information for safe travel through the city. Signage for city parks, trails, special events, ordinances, seasonal road restrictions, traffic counts and barricades are also provided by the Sign Department. Sign data such as location, type and quality of signs is being collected and data entry completed on a sign database for sign inventory. Process Used City staff / Engineers provide data regarding signage for new developments, update existing signage and any other related sign changes. City staff, engineers, residents, local sheriff, Public Works and the general public also provide notification for necessary repairs for damaged signs. Service Expenditure HiEhli2hts Minimal changes to Budgeted 2022 as compared to Current 2021. Actual Current Budgeted Performance Measures 2020 2021 2022 Sign Compliant Upgrades (# of zones) 0.5 1 1 Damaged/Repair/Replace (# of signs) 250 200 200 All Parks and Trail Signs 29 25 25 Traffic Counts (locations, every 4 yrs) 0 15 15 Sign Inventory / Verified (# of zones) 1 2 2 Covid-19 related signs 350 30 30 Department: Street Signs Director/Manager: Street Supervisor Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents 1.58 1.51 1.44 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 172,971 $ 176,902 $ 165,234 Supplies & Materials 69,419 47,100 47,860 Other Services / Charges 14,891 14,080 15,500 Purchased Services - 1,000 1,500 TOTAL $ 257,281 $ 239,082 $ 230,094 Service Expenditure By Cate2ory Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA Actual $ vv0.64 $ 7.69 ®Personal Services ®Supplies & Materials I]Other Services / Charges OPurchased Services Current Budgeted $ vv0.59 $ 7.10 $ vv0.57 $ 6.80 IA Fund: 0101 -General Cost Center: 43400 Activitv Description Under the Anoka County Cost Share Policy, the City of Andover is responsible for 1) the electrical cost of the overhead street lights at intersections and 2) the power of the traffic signal and maintenance costs for some aspects of the signal The City has wayside horns at the railroad tracks at Andover Blvd NW and Crosstown Blvd NW. Process Used Intersections are signalized at various locations within the community based on the Anoka County cost share policy and the need of the community. Wayside horns have been installed to reduce the train horn noise at the following locations: Andover Blvd NW and Crosstown Blvd NW. Service Expenditure Hiuhliuhts Anoka County Highway Department maintains all the traffic signals and EVP systems on their highway system throughout Andover and expenses continue to rise both in actual costs and increased number of signals and EVP systems. Connexus Energy maintains the overhead street lights and 5 - 10 go out every year. Wayside horns require a monthly inspection/service visit and a bi-annual complete overview of the system. Actual Performance Measures 2020 Traffic Signals: Within the Community 20 Shared (Anoka or Coon Rapids) 7 Wayside Horns 2 Current Budgeted 2021 2022 2 7 2 Department: Traffic Signals Director/Manager: City Engineer Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 18,417 26,000 27,500 Purchased Services 4,628 11,000 12,500 TOTAL $ 23,045 $ 37,000 $ 40,000 Service Expenditures By Cate�Ory 0 20 Expenditures Per Capita 7 Population - Estimates 2 Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted 2020 2021 2022 33,448 33,650 33,850 $ 0.06 $ 0.09 $ 0.10 $ 0.69 $ 1.10 $ 1.18 Eli Fund: 0101 -General Cost Center: 43500 Activitv Description Street lighting and safety lighting provides a safety measure for both pedestrians and the motoring public. Process Used Street lights are installed at critical intersections of county roads and city streets, in addition to, other safety lighting needs. Service Expenditure Hiuhliahts As the City continues to develop, new street lights are added with new and existing neighborhoods and at critical intersections within the City. Due to annual adjustments, maintenance, replacement, and/or repair of lights by Connexus Energy, the expenditures to service these lights have generally shown an upward trend in costs. Performance Measures Number of Lights installed and maintained by private utility. Actual 322 Department: Street Lighting Director/Manager: City Engineer Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budaeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 34,211 38,000 40,000 Purchased Services - 400 400 TOTAL $ 34,211 $ 38,400 $ 40,400 Service Expenditures By Catei!Ory Current Budgeted 2021 2022 Expenditures Per Capita 322 332 Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Actual Current Budaeted $ 0.09 $ 0.10 $ 0.10 $ 1.02 $ 1.14 $ 1.19 82 Fund: 0101 -General Cost Center: 43600 Activitv Description The street lights that are internal to a residential development are funded by that development or neighborhood. Both the operation and maintenance costs of the lights are billed to the neighborhood property owners. Process Used Connexus Energy operates, maintains and bills the residents for their street lights. Streets lights are only billed to neighborhoods that have the lights Service Expenditure HiEhli2hts Due to annual adjustments, maintenance, replacement and/or repair of lights by Connexus Energy, the expenditures to service these lights have generally shown an upward trend in costs. The billing services contract continues to increase as well. Actual Current Budaeted Performance Measures 2020 Number of Street Lights Billed 1,326 Department: Street Lights Billed Director/Manager: City Engineer Actual Current Budgeted StaffinLy Levels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budaeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services & Charges 121,852 140,000 147,500 Purchased Services 30,329 33,000 33,000 TOTAL $ 152,181 $ 173,000 $ 180,500 Service Expenditures By Catei!Ory 2021 2022 Expenditures Per Capita 1,348 1,363 Population - Estimates Monthly Annual ------------------- ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials DOther Services & Charges OPurchased Services Actual Current Budaeted $ 0.38 $ 0.43 $ 0.44 $ 4.55 $ 5.14 $ 5.33 83 Fund: 0101 -General Cost Center: 45000 Activitv Description The Parks Department maintains the entire City park and trail system. Most of the upgrades and additional developments of the parks are also done by the parks staff. Maintenance tasks include playground and play structures, ball infields, ice rinks, buildings and shelters, landscaping, trees and plantings, irrigation systems, painting, blacktop repair, trash and litter control, various construction projects, wood and metal fabrication, lighting and electrical, trail sign installs, and all turf and seed upkeep. Process Used The top priority for the Parks Department is to provide a safe product or facility for all the public to use. Provide diverse activities for all groups and associations through the use of city parks and/or trail systems. Service Expenditure Highlights Budgeted 2022 includes any employee changes in health insurance, a COLA adjustment and any step changes for newer employees. Other Services / Charges changed due to an increased allocation of Central Services for the operation and maintenance costs associated with parks equipment - mowers, trail machines, trucks and snow removal equipment. It also includes an increase is utility costs for irrigation, lights, etc. Actual Current Budgeted Performance Measures Number of City Parks maintained 2020 53 2021 53 2022 53 Total acreage mowed 338 340 340 Ballfields maintained 27 27 27 Number of playgrounds 42 42 Total soccer fields maintained 20 20 Miles of trail maintained 40 41 Ice Rinks / Warmina Houses 12 / 4 12 / Department: Parks & Recreation Director/Manager: Parks Maintenance Supervisor Actual Current Budgeted Staffiniz Levels 2020 2021 2022 FTE Equivalents 8.56 8.44 7.94 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 880,505 $ 918,803 $ 903,486 Supplies & Materials 84,536 107,900 110,300 Other Services / Charges 254,477 298,337 328,400 Purchased Services 33,843 99,000 85,900 Capital Outlay 172,872 185,000 145,000 TOTAL 1,426,233 1,609,040 1,573,086 Service Expenditures By Category 42 20 Expenditures Per Capita 41 Population - Estimates 4 12 / 4 Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA Actual $ vv3.55 $ 42.64 ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services ®Capital Outlay Current 2021 33,650 $ 3.98 $ 47.82 Budgeted $ vv3.87 $ 46.47 84 Fund: 0101 -General Cost Center: 45500 Activitv Description The City has several nature preserves and natural parks that could benefit from various forms of vegetation management. Activities included but not limited to prescribed burns, mowing, spot spraying invasive weeds, harvesting invasive woody species and planting native trees, shrubs, grasses and wild flowers. The City will do some activities in-house and contract some out. This will improve wildlife habitat, storm water quality aesthetics and long-term sustainability and help provide a natural environment for residents to enjoy Also, the City has an EAB (emerald ash borer) Management Program to chemically treat trees on public and private properties. Process Used Staff will review the applicable properties on an annual basis and prioritize them for management based on needs. Service Expenditure Highlights Current 2021 included a carryover from 2020 Performance Measures Number of City nature preserves Actual 2020 4 Current 2021 4 Budgeted 2022 4 Number of City Parks undeveloped 6 6 6 Total acreage managed 250 250 250 Ash trees treated 80 95 125 Department: Natural Resource Preservation Director/Manager: City Engineer Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 0.00 0.02 0.02 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 18 $ 1,759 $ 1,811 Supplies & Materials 367 2,000 2,500 Other Services / Charges 1,019 1,124 1,000 Purchased Services 8,417 11,500 9,000 TOTAL 9,821 16,383 14,311 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA Actual $ 0.02 $ 0.29 ®Personal Services ®Supplies & Materials DOther Services / Charges OPurchased Services Current 2021 33,650 $ 0.04 $ 0.49 Budgeted $ 0.04 $ 0.42 85 Fund: 0101 -General Cost Center: 46000 Activitv Description The Recycling Department provides recycling opportunities to all city residents. The goal is to provide this service in a cost effective manner. Process Used Refuse and recycling services are provided curbside by licensed haulers in an open hauling system. A drop off recycling site is provided by the City. Recycling bins are also available through the City. New recycling materials are offered as soon as they become feasible. Also provides special educational programs for Andover schools and senior apartment complexes to promote waste reduction and recycling. Service Expenditure Highlights A small increase is planned for Budgeted 2022 due to disposal fees. Actual Current Budgeted Performance Measures 2020 2021 2022 Schools with recycling bins 7 7 7 Recycling Days 10 12 11 Recycling collection tonnage 4,403 4,000 4,000 Department: Recycling Director/Manager: Recycling Coordinator Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 0.91 0.81 0.81 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 54,284 $ 68,596 $ 72,606 Supplies & Materials 2,261 6,875 7,875 Other Services / Charges 15,866 16,788 17,000 Purchased Services 155,713 139,500 140,500 TOTAL $ 228,124 $ 231,759 $ 237,981 Service Expenditures By Category Expenditures Per Capita Population - Estimates Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials oOther Services / Charges oPurchased Services Actual Current Budgeted $ 0.57 $ 0.57 $ 0.59 $ 6.82 $ 6.89 $ 7.03 86 Fund: 0101 - General Cost enter: 49100 Activity Description Unallocated contains funding for the unexpected and miscellaneous items not directly chargeable to a specific activity. Process Used Annually the City reviews the miscellaneous activities funding levels and based on past experiences does budget a contingency amount for unexpected expenditures. Service Expenditure Highlight Actual 2020 and Current 2021 included transfers to the Road & Bridge Capital Projects Fund for continued maintenance of roadways. Budget 2022 includes a transfer to the Economic Development Authority Special Revenue Fund for median work along Bunker Lake Boulevard. Department: Unallocated Director/Manager: Finance Director Actual Current Budgeted StaffingLevels evels 2020 2021 2022 FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ - $ - $ - Supplies & Materials - - - Other Services / Charges 12,778 63,000 95,928 Purchased Services - - - Other Uses 1,000,000 750,000 150,000 TOTAL 1,012,778 813,000 245,928 Service Expenditures By Catel!or ®Personal Services ®Supplies & Materials oOther Services / Charges oPurchased Services ®Other Uses Actual Current Budgeted Expenditures Per Capita 2020 2021 2022 Population - Estimates 33,448 33,650 33,850 Monthly $ 2.52 $ 2.01 $ 0.61 Annual $ 30.28 $ 24.16 $ 7.27 ADOPTED 2022 BUDGET CITY Of ANDOVER, MINNESOTA 87 This page left blank intentionally. 0 CITY OF ANDOVER, MINNESOTA 2022 ANNUAL BUDGET Special revenue funds are established to justify revenue sources to finance particular functions or projects. Revenue for these funds can come from a variety of sources, such as taxes, fees, gifts and grants or contributions from other governmental entities. Expenditures from these funds are normally restricted by statute, local ordinance, or grant agreements. The funds may be used for either operations or capital outlay as legal restrictions mandate. 89 This page left blank intentionally. 90 City of Andover Special Revenue Funds 2022 Budget Summary - All Special Revenue Funds Statement of Revenues, Expenditures and Changes in Fund Balance Actual AdoptedEstimate Adapted Description 2020 2021 2021 2022, Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: $ 1,182,874 $ 1,007,917 $ 1,007,917 $ 1,556,227 39,963 195,000 195,000 195,000 2,465,736 37,500 1,753,388 1,790,888 601,124 1,139,000 1,087,500 1,170,500 22,350 5,200 5,300 5,200 822,438 808,000 853,000 806,000 3,951,611 2,184,700 3,894,188 3,967,588 - - - 150,000 3,951,611 2,184,700 3,894,188 4,117,588 5,134,485 3,192,617 4,902,105 5,673,815 664,892 794,841 778,341 825,896 114,832 130,820 113,470 118,820 2,720,114 302,620 1,576,870 1,818,620 144,851 693,147 572,197 658,033 176,179 - - 30,000 3,820,868 1,921,428 3,040,878 3,451,369 305,700 305,000 305,000 307,400 4,126,568 2,226,428 3,345,878 3,758,769 Fund Balance, December 31 $ 1,007,917 $ 966,189 $ 1,556,227 $ 1,915,046 Change in Fund Balance $ (174,957) $ (41,728) $ 548,310 $ 358,819 -15% -4% 54% 23% 91 City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Requested Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ 198,788 $ 153,980 $ 153,980 $ 97,952 Revenues Charges for Services 26,005 7,000 15,000 15,000 Investment Income 2,435 2,000 2,000 2,000 Miscellaneous 443 - - - Total Revenues: 28,883 9,000 17,000 17,000 Other Sources Transfers In - - - 150,000 Total Revenues and Other Sources: 28,883 9,000 17,000 167,000 Total Available: 227,671 162,980 170,980 264,952 Expenditures Personal Services 3,792 6,028 6,028 7,536 Supplies and Materials 5,610 18,900 13,650 18,900 Purchased Services 55,159 63,400 41,500 213,400 Other Services and Charges 9,130 13,850 11,850 13,850 Total Expenditures: 73,691 102,178 73,028 253,686 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 73,691 102,178 73,028 253,686 Fund Balance, December 31 $ 153,980 $ 60,802 $ 97,952 $ 11,266 Change in Fund Balance $ (44,808) $ (93,178) $ (56,028) $ (86,686) -23% -61 % -36% -88% 92 Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Highlights 2020 & 2021 includes funding for monument entrance signs. 2020 also includes irrigating the median in the Andover Station area. 2022 includes the medians along Bunker Lake Boulevard to be filled in with concrete ($150,000) through a transfer from the General Fund. EDA Budget provides for ongoing maintenance around the Andover Station Development area. Department ea: City Administrator General Activity Description To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. Process Used Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. The EDA is the primary authority involved in managing the City's four Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 93 City of Andover Special Revenue Funds Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 Revenues Intergovernmental - 25,000 Other Sources Transfers In - - Total Revenues and Other Sources: - 25,000 Total Available: - 25,000 Expenditures Other Services and Charges - 25,000 Other Uses Transfers Out - - Total Expenditures and Other Uses: - 25,000 Fund Balance, December 31 $ - $ - Change in Fund Balance $ - $ - n/a n/a 25,000 25,000 25,000 25,000 25,000 n/a n/a 94 Fund: Community Development Block Grant Activity / o e: Special Revenue Expenditure Highlights This was a new fund created in 2004 to track the Community Development Block Grant (CDBG) Rental Rehab program. In 2022, additional grant monies will be applied for to study areas that have access to city water but are not currently hooked up. Department ea: Community Development Dir. General Activity Description The Rental Rehab program provides low -interest loans for the rehabilitation of rental housing units. This fund accounts for the loans disbursed, as well as the payments received. In 2008, a housing rehab program was started. Due to the lack of interest, the rental rehab program was terminated in 2012. Process Used Rehab Grants are received from CDBG and disbursed to qualified applicants. As payments come in, these funds create a revolving loan program and new loans are given out to qualified applicants. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 95 City of Andover Special Revenue Funds Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actuaf Adopted Estimafe Adopted Description, 2020 2021 2021 2022 Fund Balance, January 1 Revenues General Property Taxes Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses $ 544,614 $ 358,082 $ 358,082 $ 503,657 - 155,000 155,000 155,000 513,765 1,089,000 1,028,000 1,112,500 6,793 - - - 746,410 778,000 760,000 776,000 1,266,968 2,022,000 1,943,000 2,043,500 1,266,968 2,022,000 1,943,000 2,043,500 1,811,582 2,380,082 2,301,082 2,547,157 503,842 757,753 737,753 770,110 74,809 105,100 97,500 93,100 345,588 154,375 119,775 214,525 129,261 635,197 542,397 599,233 100,000 - - 30,000 1,153,500 1,652,425 1,497,425 1,706,968 Transfers Out 300,000 300,000 300,000 300,000 Total Expenditures and Other Uses: 1,453,500 1,952,425 1,797,425 2,006,968 Fund Balance, December 31 $ 358,082 $ 427,657 $ 503,657 $ 540,189 Change in Fund Balance $ (186,532) $ 69,575 $ 145,575 $ 36,532 -34% 19% 41% 7% 96 Fund: Community Center Activity Type/Code: Special Revenue Expenditure Highlights 2009 was the first year the YMCA made a full lease payment of $635,000. The transfer out is the difference between the tax levied for the Community Center debt service and the total annual debt service for the Community Center In 2020, the planned shutdown was initated early due to COVID-19, thus the shortfall for the year is expected to be greater than budgeted. 2021 is the first full year of operations with the multi -sports complex, the additional court added to the field house, senior/teen space and additional parking. No major changes planned for 2022 as staff tries to optimize efficiencies with the additional space. Department ea: Recreation Facility Manager General Activitv Description This fund accounts for the operations of the Andover/YMCA Community Center, particularly the ice arena, field house and concessions. The aquatic's portion of the Community Center is under the operations of the YMCA. Process Used The Community Center construction started in 2004 and was completed in the summer of 2005. The facility will be managed by the Recreational Facility Manager with oversight by a Community Center Advisory Board and the City Council. The YMCA is a long-term tenant and started making lease payments in 2008. In 2020, an expansion of the Community Center was completed. It includes a multi -sports complex, an additional court added to the field house, senior/teen space, and additional parking. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 97 City of Andover Special Revenue Funds Drainage and Mapping Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ 183,729 $ 192,283 $ 192,283 $ 176,983 Revenues Charges for Services 21,853 9,000 4,500 9,000 Investment Income 4,148 1,200 1,200 1,200 Total Revenues: 26,001 10,200 5,700 10,200 Other Sources Transfers In - - - - Total Revenues and Other Sources: 26,001 10,200 5,700 10,200 Total Available: 209,730 202,483 197,983 187,183 Expenditures Personal Services - - 3,500 10,551 Supplies and Materials 403 3,300 800 3,300 Purchased Services 10,868 14,200 10,000 14,200 Other Services and Charges 6,176 8,500 6,700 8,500 Total Expenditures: 17,447 26,000 21,000 36,551 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 17,447 26,000 21,000 36,551 Fund Balance, December 31 $ 192,283 $ 176,483 $ 176,983 $ 150,632 Change in Fund Balance $ 8,554 $ (15,800) $ (15,300) $ (26,351) 5% -8% -8% -15% 98 Fund: Drainage and Mapping Activity / o e: Special Revenue Expenditure Highlights Minimal changes are planned for this fund as monies are set aside for future mapping needs. A GIS Coordinator was hired in 2021 with their salary and benefits allocated to numerous departments. Department Head: Dir of PW / City Engineer General Activity Description The drainage and mapping activity provides the resource to maintain existing and develop new maps and mapping systems for the City. The City GIS is a key component in this mapping and data inventory task. Process Used Existing mapping systems and data are maintained manually in a reproducible format. The existing information is being converted to a digital format as is all new data which is developed for the City. All data will be accessible either manually or through a computerized application. -------------------------------------------------------------------------- ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 99 City of Andover Special Revenue Funds Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ 62,300 $ 74,901 $ 74,901 $ 86,158 Revenues General Property Taxes 39,963 40,000 40,000 40,000 Investment Income 1,336 200 300 200 Total Revenues: 41,299 40,200 40,300 40,200 Other Sources Transfers In - - - - Total Revenues and Other Sources: 41,299 40,200 40,300 40,200 Total Available: 103,599 115,101 115,201 126,358 Expenditures Personal Services 13,933 14,928 14,928 15,891 Supplies and Materials - 520 520 520 Purchased Services 14,765 13,595 13,595 13,595 Other Services and Charges - 200 - 200 Total Expenditures: 28,698 29,243 29,043 30,206 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 28,698 29,243 29,043 30,206 Fund Balance, December 31 $ 74,901 $ 85,858 $ 86,158 $ 96,152 Change in Fund Balance $ 12,601 $ 10,957 $ 11,257 $ 9,994 20% 15% 15% 12% 100 Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Expenditure Highlights Minimal changes are planned for this fund. Fund balance is being set aside for the preparation of the fourth generation water management plan and any additional services that may be needed. DepartmentHead: Assistant City Engineer General Activity Description The function of the Lower Rum River Watershed Management Organization (LRRWMO) is to provide for: conservation of water and natural resources; prevention and alleviation of flood damage; and regulation of creeks, lakes, water courses and storm water conveyance systems for domestic, recreational and public use across municipal boundaries. To achieve this purpose, state law gives watershed management organizations several powers, among which are: 1. Responsibility for preserving natural retention areas. 2. Preparation of plans for water management. 3. Review of municipal water management plans and of projects directly affecting the water resources of the watershed. 4. Review of local land use in the absence of an approved municipal surface water management plan. 5. Collection of data. 6. Conducting of studies and investigations. 7. Construction of improvements, either in response to petition or on the initiative of the LRRWMO. 8. Levying of taxes and assessments for the financing of the previously mentioned activities and for general administration of the organization. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA fla City of Andover Special Revenue Funds Forestry Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ 5,237 $ 5,335 $ 5,335 $ 4,885 Revenues Intergovernmental - 12,500 - 12,500 Investment Income 98 50 50 50 Total Revenues: 98 12,550 50 12,550 Other Sources Transfers In - - - - Total Revenues and Other Sources: 98 12,550 50 12,550 Total Available: 5,335 17,885 5,385 17,435 Expenditures Supplies and Materials - 2,500 500 2,500 Purchased Services - 12,500 - 12,500 Total Expenditures: - 15,000 500 15,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: - 15,000 500 15,000 Fund Balance, December 31 $ 5,335 $ 2,885 $ 4,885 $ 2,435 Change in Fund Balance $ 98 $ (2,450) $ (450) $ (2,450) 2% -46% -8% -50% 102 Fund: Forestry Activity Type/Code: Special Revenue Expenditure Highlights This fund tracks forestry -related grants with state agencies like the Minnesota Department of Natural Resources (DNR) and administers the bare root tree sale. A tree sale is proposed for 2022. Department Head. Dir of PW / City Engineer General Activity Description Forestry shall preserve Andover's forest resources and develop control plans to ensure preservation and/or restoration of these resources. Process Used The City utilizes the Natural Resources Technician to administer the annual bare root tree sale, coordinate various tree plantings with local organizations like the Eagle Scouts, and monitor preservation and disease tree management grants. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 103 City of Andover Special Revenue Funds Right of Way Management / Utility Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 Revenues Charges for Services Investment Income Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 70,421 $ 81,743 $ 81,743 $ 77,361 39,501 24,000 30,000 24,000 1,687 500 500 500 41,188 24,500 30,500 24,500 41,188 24,500 24,500 30,500 111,609 106,243 112,243 101,861 11,846 16,132 16,132 21,808 - 500 500 500 12,320 14,550 12,000 15,400 - 400 1,250 1,250 24,166 31,582 29,882 38,958 5,700 5,000 5,000 7,400 29,866 36,582 34,882 46,358 $ 81,743 $ 69,661 $ 77,361 $ 55,503 Change in Fund Balance $ 11,322 $ (12,082) $ (4,382) $ (21,858) 16% -15% -5% -28% 104 Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue Expenditure Highlights The transfer to the Road & Bridge Capital Projects is for the degredation of roadways associated with right-of-way permits. Department ea: Dir of PW / City Engineer General Activity Description The function of Right -of -Way Management is to provide for: management of the public rights -of -way and to recover the rights -of -way management costs; and to regulate the use of public rights -of -way by providers of telecommunication services, public utility services and the like, in a fair, efficient, competitively neutral and substantial uniform manner. Process Used To achieve this purpose, state law gives the City several powers to include requiring the following: 1. Require permits for work within the right-of-way. 2. Collect fees to recover costs associated with the permit including damages to the right-of-way. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 105 City of Andover Special Revenue Funds Charitable Gambling Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ 114,711 $ 136,438 $ 136,438 $ 150,188 Revenues Investment Income 3,510 750 750 750 Miscellaneous 75,585 30,000 93,000 30,000 Total Revenues: 79,095 30,750 93,750 30,750 Other Sources Transfers In - - - - Total Revenues and Other Sources: 79,095 30,750 93,750 30,750 Total Available: 193,806 167,188 230,188 180,938 Expenditures Purchased Services 57,368 30,000 80,000 35,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 57,368 30,000 80,000 35,000 Fund Balance, December 31 $ 136,438 $ 137,188 $ 150,188 $ 145,938 Change in Fund Balance $ 21,727 $ 750 $ 13,750 $ (4,250) 19% 1% 10% -3% 106 Fund: Charitable Gambling Activity / o e: Special Revenue Expenditure Highlights This fund was created to track the donations received from the Andover Hockey Association and Andover Football Association from their charitable gambling activities. Funding is used towards the Alexandra House, Youth First, Family of Promise, teen programing, etc.. Funding for these expenditures are dependent upon donations. Department ea: Finance Director General Activity Description The licensed organizations are required to donate 10% of their net profits to the City. Process Used According to State Statute, all expenditures from this fund must be for police, fire and other emergency or public safety -related services, equipment, and and training, excluding pension obligations, or qualifying public service organizations. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 107 City of Andover Special Revenue Funds Construction Seal Coating Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ 3,074 $ 5,155 $ 5,155 $ 5,655 Revenues Charges for Services - 10,000 10,000 10,000 Investment Income 2,081 500 500 500 Total Revenues: 2,081 10,500 10,500 10,500 Other Sources Transfers In - - - - Total Revenues and Other Sources: 2,081 10,500 10,500 10,500 Total Available: 5,155 15,655 15,655 16,155 Expenditures Other Services and Charges - 10,000 10,000 10,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: - 10,000 10,000 10,000 Fund Balance, December 31 $ 5,155 $ 5,655 $ 5,655 $ 6,155 Change in Fund Balance $ 2,081 $ 500 $ 500 $ 500 68% 10% 10% 9% 108 Fund: Construction Seal Coating Activity Type/Code: Special Revenue Expenditure Highlights The Construction Seal Coating Special Revenue Fund was established in 1996 and is utilized for the first application of crack seal and seal coat in new developments. Department Head: Dir of PW / City Engineer General Activity Description The Construction Seal Coating Special Revenue Fund accounts for contributions associated with land development to be used for the respective developments first application of crack seal and seal coat. Process Used The City has an annual crack seal and seal coat program. Currently the City is divided into nine zones and these developments are done within four years of being constructed. Crack sealing is completed one year prior to seal coating. This allows the crack sealing material to cure and minimize bleed through once seal coated. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 109 City of Andover Special Revenue Funds CARES Act / ARPA Funding Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Descriptio;rr 2020, 2021' 2021 2022 Fund Balance, January 1 $ Revenues Intergovernmental 2,465,736 Investment Income 262 Total Revenues: 2,465,998 Other Sources Transfers In - Total Revenues and Other Sources: 2,465,998 Total Available: 2,465,998 Expenditures Personal Services 131,479 Supplies and Materials 34,010 Purchased Services 2,224,046 Other Services and Charges 284 Capital Outlay 76,179 Total Expenditures: 2,465,998 Other Uses Transfers Out - Total Expenditures and Other Uses: 2,465,998 Fund Balance, December 31 $ - Change in Fund Balance $ - n/a $ - $ - $ 453,388 - 1,753,388 1,753,388 - 1,753,388 1,753,388 - 1,753,388 1,753,388 - 1,753,388 2,206,776 - 1,300,000 1,300,000 - 1,300,000 1,300,000 - 1,300,000 1,300,000 $ - $ 453,388 $ 906,776 $ - $ 453,388 $ 453,388 n/a n/a 100% 110 Fund: CARES Act / ARPA Funding Activity Type/Code: Special Revenue Expenditure Hi2hkhts In 2020, the CARES Act provided over $2.4m in aid to the City. It was distributed in the following categories: Small Business Assistance $ 1,802,484 Payroll for Public Health & Safety Employees 208,594 Public Health Expenses/Safety Measures/PPE 287,067 Telework Capabilities Improvements 96,555 Miscellaneous 71,300 $ 2,466,000 In 2022, the ARPA Funding can be used to: 1. Support public health / safety response 2. Replace public sector revenue loss 3. Water and sewer infrastruction 4. Address negative economic impacts 5. Premium pay for essential workers 6. Broadband infrastructure City Council has yet to determine how funds will be allocated. Department ea: Finance Director General Activitv Description The CARES Act / ARPA Funding Special Revenue Fund accounts for money distributed to local governments to assist with the financial strain caused by COVID-19. Process Used Federal guidance indicates that the City can have discretion to determine what the funds can be used for based on compliance to the guidelines provided. The CARES Act provides that payments from the fund may only be used to cover costs that (1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019; (2) were not accounted for in the budget most recently approved as of March 27, 2020 for the State or government; and (3) were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. ARPA is a $1.9 trillion package that includes direct relief to states, counties, cities, and towns, as well as public utilities, libraries and transit agencies. The City of Andover expects to receive approximately $3.5 million in two distributions - July 2021 and July 2022. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA fla This page left blank intentionally. 112 CITY OF ANDOVER, MINNESOTA 2022 ANNUAL BUDGET 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. 113 This page left blank intentionally. 114 City of Andover Debt Service Funds 2022 Budget Summary - All Debt Service Funds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,436,104 $ 2,099,876 $ 2,099,876 $ 2,562,140 3,076,966 11,680 3,088,646 3,137,578 3,137,578 3,137,578 3,137,578 3,751,062 3,751,062 520,446 547,904 547,904 908,443 3,609,092 3,685,482 3,685,482 4,659,505 5,045,196 5,785,358 5,785,358 7,221,645 1,561,000 1,899,000 1,899,000 2,110,000 1,290,844 1,278,031 1,278,031 1,246,741 5,000 6,000 5,500 4,800 2,856,844 3,183,031 3,182,531 3,361,541 88,476 41,581 40,687 255,988 2,945,320 3,224,612 3,223,218 3,617,529 $ 2,099,876 $ 2,560,746 $ 2,562,140 $ 3,604,116 Change in Fund Balance $ 663,772 $ 460,870 $ 462,264 $ 1,041,976 46% 22% 22% 41% 115 City of Andover Debt Service Funds Certificates/Capital Notes - 2014A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 $ 366,226 $ - Revenues General Property Taxes - - Investment Income - - Total Revenues: - - Other Sources Operating Transfers In - - Total Revenues and Other Sources: - - Total Available: 366,226 - Expenditures Debt Service Principal 275,000 - Interest 2,750 - Other - - Total Expenditures: 277,750 - Other Uses Operating Transfers Out 88,476 - Total Expenditures and Other Uses: 366,226 - Fund Balance, December 31 $ - $ - Change in Fund Balance $ (366,226) $ - -100% n/a n/a n/a 116 Fund: Cost Center: 2014A G.O. Equipment Certificates Department Head: Finance Director .- «Debt Service Final payment was made in 2020. General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $1,355,000 of Capital Notes in 2014 to facilitate the purchase of equipment. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 117 City of Andover Debt Service Funds Certificates/Capital Notes - 2016A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estirrrate Adopted Descriptio;rr '2020 2021' 2021 2022 Fund Balance, January 1 $ 168,872 $ 175,960 $ 175,960 $ - Revenues General Property Taxes 142,775 - - - Investment Income (296) - - - Total Revenues: 142,479 - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 142,479 - - - Total Available: 311,351 175,960 175,960 - Expenditures Debt Service Principal 131,000 134,000 134,000 - Interest 3,791 1,273 1,273 - Other 600 - - - Total Expenditures: 135,391 135,273 135,273 - Other Uses Operating Transfers Out - 41,581 40,687 - Total Expenditures and Other Uses: 135,391 176,854 175,960 - Fund Balance, December 31 $ 175,960 $ (894) $ - $ - Change in Fund Balance $ 7,088 $ (176,854) $ (175,960) $ - 4% -101 % -100% n/a 118 Fund: Cost Center: t Equipment Department is ArF oc Debt Service Final payment was made in 2021. General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City issued $520,000 of Capital Notes in 2016 to facilitate the purchase of equipment. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 119 City of Andover Debt Service Funds Certificates/Capital Notes - 2020A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 $ - $ 333,615 $ 333,615 $ 377,639 Revenues General Property Taxes 348,540 406,224 406,224 374,850 Investment Income 4,288 - - - Total Revenues: 352,828 406,224 406,224 374,850 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 352,828 406,224 406,224 374,850 Total Available: 352,828 739,839 739,839 752,489 Expenditures Debt Service Principal - 315,000 315,000 320,000 Interest 19,213 46,100 46,100 33,400 Other - 1,200 1,100 1,200 Total Expenditures: 19,213 362,300 362,200 354,600 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 19,213 362,300 362,200 354,600 Fund Balance, December 31 $ 333,615 $ 377,539 $ 377,639 $ 397,889 Change in Fund Balance $ 333,615 $ 43,924 $ 44,024 $ 20,250 n/a 13% 13% 5% 120 Fund: 3214 Cost Center: 2020A G.O. EquipmentCertificates Department Head:Finance Director civi / e: Debt Service iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliillillilliillillillillillillillilliillillillillillilI General Activity Description Debt Service is scheduled as listed below: Year Amount Principal Interest 2022 $ 353,400 $ 320,000 $ 33,400 2023 350,400 330,000 20,400 2024 351,900 345,000 6,900 $ 1,055,700 $ 995,000 $ 60,700 To account for the payment of principal and interest on long-term debt. The City issued $1,310,000 of Capital Notes in 2020 to facilitate the purchase of equipment. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 121 City of Andover Debt Service Funds Certificates/Capital Notes - 2021A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 $ Revenues General Property Taxes - Other Sources Operating Transfers In - Total Revenues and Other Sources: - Total Available: - Expenditures Debt Service Principal - Interest - Other - Total Expenditures: - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 340,000 - - 3,324 - - 3,324 - - 170,000 - - 173,324 $ 170,000 $ 170,000 $ 166,676 $ 170,000 $ 170,000 $ (3,324) n/a n/a -2% 122 Fund: 3215 Cost enter: 2021A G.O. Equipment Certificates Department Head:Finance Director civi e/ ode: Debt Service General Activity Description Debt Service is scheduled as listed below: Year Amount Principal Interest 2022 $ 7,455 $ - $ 7,455 2023 161,100 150,000 11,100 2024 163,050 155,000 8,050 2025 164,900 160,000 4,900 2026 166,650 165,000 1,650 $ 663,155 $ 630,000 $ 33,155 To account for the payment of principal and interest on long-term debt. Process Used The City issued $630,000 of Capital Notes in 2021 to facilitate the purchase of equipment. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 123 City of Andover Debt Service Funds General Obligation Bonds - 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted Descriptio;rr 2fl 19 2020 2020 ' 2021 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 309,484 $ 348,045 $ 348,045 $ 372,708 431,794 456,344 456,344 617,519 3,698 - - - 435,492 456,344 456,344 617,519 45,300 45,300 45,300 45,300 480,792 501,644 501,644 6621819 790,276 849,689 849,689 1,035,527 85,000 125,000 125,000 130,000 356,131 350,881 350,881 344,506 1,100 1,200 1,100 1,200 442,231 477,081 476,981 475,706 442,231 475,706 477,081 476,981 $ 348,045 $ 372,608 $ 372,708 $ 559,821 Change in Fund Balance $ 38,561 $ 24,563 $ 24,663 $ 187,113 12% 7% 7% 50% 124 I Cost Center: 2018A G.O. Capital Improvement Plan Bonds Department Head: Finance Director Acti,vi%jj,TXpe,,1,C,ode: Debt Service Debt Service is scheduled as listed below: Year Amount Principal Interest 2022 $ 474,506 $ 130,000 $ 344,506 2023 624,006 290,000 334,006 2024 619,256 300,000 319,256 2025 618,881 315,000 303,881 2026 622,631 335,000 287,631 2027 620,506 350,000 270,506 2028 626,206 370,000 256,206 2029 624,956 380,000 244,956 2030 623,406 390,000 233,406 2031 621,556 400,000 221,556 2032 624,331 415,000 209,331 2033 621,731 425,000 196,731 2034 623,756 440,000 183,756 2035 620,125 450,000 170,125 2036 620,538 465,000 155,538 2037 620,182 480,000 140,182 2038 619,338 495,000 124,338 2039 622,603 515,000 107,603 2040 619,969 530,000 89,969 2041 621,400 550,000 71,400 2042 621,800 570,000 51,800 2043 616,588 585,000 31,588 2044 620,675 610,000 10,675 $ 14,148,946 $ 9,790,000 $ 4,358,946 The Water and Sanitary Sewer Enterprise Funds will be paying a portion of the annual debt for the new public works facilities. General Activity Description To account for the payment of principal and interest on long-term debt. Prnrocc I Iccrl The City issued $10,000,000 of Capital Improvement Plan bonds in 2018 to facilitate the construction of additional public works facilities. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 125 City of Andover Debt Service Funds General Obligation Bonds - 2012C G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out $ 323,685 $ 374,538 $ 374,538 $ 437,772 972,704 976,966 976,966 974,628 (4,770) - - - 967,934 976,966 976,966 974,628 300,000 300,000 300,000 300,000 1,267,934 1,276,966 1,276,966 1,274,628 1,591,619 1,651,504 1,651,504 1,712,400 910,000 925,000 925,000 945,000 305,981 287,632 287,632 268,932 1,100 1,200 1,100 1,200 1,217,081 1,213,832 1,213,732 1,215,132 Fund Balance, December 31 $ 374,538 $ 437,672 $ 437,772 $ 497,268 Change in Fund Balance $ 50,853 $ 63,134 $ 63,234 $ 59,496 16% 17% 17% 14% 126 Fund: 3405 Cost Center: 2012C G.O.: b.,, Bonds Department r • ...,: Debt Debt Service is scheduled as listed below: Year Amount Principal Interest 2022 $ 1,213,932 $ 945,000 $ 268,932 2023 1,209,282 960,000 249,282 2024 1,213,000 985,000 228,000 2025 1,209,356 1,005,000 204,356 2026 1,208,275 1,030,000 178,275 2027 1,205,250 1,055,000 150,250 2028 1,205,147 1,085,000 120,147 2029 1,212,675 1,125,000 87,675 2030 1,213,400 1,160,000 53,400 2031 1,218,000 1,200,000 18,000 $12,108,317 $10,550,000 $ 1,558,317 General Activity Description To account for the payment of principal and interest on long-term debt. Process Used The City sold $19,580,000 of Lease Revenue Bonds in 2004 to finance the construction of a community center. Approximately 50% of the debt will be paid for by a long-term lease arrangement with the YMCA of Minneapolis. The YMCA will run a full service YMCA out of the Community Center building. This issue will be used to advance refund the refunding issues sold in 2006 and 2007 that refunded the 2004 issue. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 127 City of Andover Debt Service Funds General Obligation Bonds - 2019A G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 $ - Revenues General Property Taxes 996,913 Investment Income 5,372 Total Revenues: 1,002,285 Other Sources Operating Transfers In 175,146 Total Revenues and Other Sources: 1,177,431 Total Available: 1,177,431 Expenditures Debt Service Principal - Interest 590,150 Other 1,100 Total Expenditures: 591,250 Other Uses Operating Transfers Out - $ 586,181 $ 586,181 $ 945,376 976,966 976,966 976,966 976,966 202,604 202,604 1,179,570 1,179,570 1,765,751 1,765,751 235,000 235,000 584,275 584,275 1,200 1,100 820,475 820,375 1,014,065 1,014,065 163,143 1,177,208 2,122,584 545,000 564,775 1,200 1,110,975 Fund Balance, December 31 $ 586,181 $ 945,276 $ 945,376 $ 1,011,609 Change in Fund Balance $ 586,181 $ 359,095 $ 359,195 $ 66,233 n/a 61 % 61 % 7% 128 i ost Center: 2019A G.O. Taxable Abatement Bonds Department ,,. •� o► . Dbt Service e ououououououuuuuuuuuuuuuuuuuuuuuuu llliuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuumlou000uo illiuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum Debt Service is scheduled as listed below: Year Amount Principal Interest 2022 $ 1,109,775 $ 545,000 $ 564,775 2023 1,106,900 570,000 536,900 2024 1,107,650 600,000 507,650 2025 1,106,900 630,000 476,900 2026 1,104,650 660,000 444,650 2027 1,105,775 695,000 410,775 2028 1,100,275 725,000 375,275 2029 1,106,850 765,000 341,850 2030 1,105,650 795,000 310,650 2031 1,103,250 825,000 278,250 2032 1,108,850 860,000 248,850 2033 1,107,675 885,000 222,675 2034 1,105,750 910,000 195,750 2035 1,108,000 940,000 168,000 2036 1,104,425 965,000 139,425 2037 1,105,025 995,000 110,025 2038 1,104,725 1,025,000 79,725 2039 1,103,525 1,055,000 48,525 2040 1,106, 350 1,090,000 16,350 $21,012,000 $15,535,000 $ 5,477,000 The portion of park dedication fees collected will be used to offset the debt service levy, not to exceed $1,000,000. In 2021, $202,604 will be transferred to this fund. General Activity Description To account for the payment of principal and interest on long-term debt. Prnrocc I Iccrl The City sold $15,770,000 of Taxable Abatement Bonds in 2019 to finance the expansion of the community center. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 129 City of Andover Debt Service Funds General Obligation Bonds - 2021A G.O. Street Reconstruction Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 $ - Revenues General Property Taxes - Investment Income - Total Revenues: - Other Sources Operating Transfers In - Total Revenues and Other Sources: - Total Available: - Expenditures Principal - Interest - Other - Total Expenditures: - Other Uses Operating Transfers Out - Total Expenditures and Other Uses: - Fund Balance, December 31 $ - Change in Fund Balance $ - n/a 600,000 600,000 400,000 1,000,000 1,000,000 29,147 29,147 29,147 $ - $ - $ 970,853 $ - $ - $ 970,853 n/a n/a n/a 130 Fund: 3703 Cost enter: 2021A G.O. Street Reconstruction Department Head:Finance Director civi e/ ode: Debt Service General Activity Description Debt Service is scheduled as listed below: Year Amount Principal Interest 2022 $ 69,556 $ - $ 69,556 2023 934,310 825,000 109,310 2024 947,510 855,000 92,510 2025 945,260 870,000 75,260 2026 942,710 885,000 57,710 2027 944,810 905,000 39,810 2028 951,135 925,000 26,135 2029 946,395 930,000 16,395 2030 945,640 940,000 5,640 $ 7,627,326 $ 7,135,000 $ 492,326 To account for the payment of principal and interest on long-term debt. Process Used The City issued $7,135,000 of Street Reconstruction Bonds in 2021 to facilitate the reconstruction of streets. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 131 City of Andover Debt Service Funds General Obligation Bonds - 2010A G.O. Open Space Referendum Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted E tirrrate Adopted Description' '2020 2021' 2021 2022 Fund Balance, January 1 $ 267,837 $ 281,537 $ 281,537 $ 258,645 Revenues General Property Taxes 184,240 151,078 151,078 - Investment Income 3,388 - - - Total Revenues: 187,628 151,078 151,078 - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 187,628 151,078 151,078 - Total Available: 455,465 432,615 432,615 258,645 Expenditures Debt Service Principal 160,000 165,000 165,000 170,000 Interest 12,828 7,870 7,870 2,657 Other 1,100 1,200 1,100 - Total Expenditures: 173,928 174,070 173,970 172,657 Other Uses Operating Transfers Out - - - 85,988 Total Expenditures and Other Uses: 173,928 174,070 173,970 2581645 Fund Balance, December 31 $ 281,537 $ 258,545 $ 258,645 $ - Change in Fund Balance $ 13,700 $ (22,992) $ (22,892) $ (258,645) 5% -8% -8% -100% 132 Fund: 3901 Cost Center: 201 OA G.O. Open Space Referendum Bonds Department Head:Finance Director civi / Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2022 $ 172,657 $ 170,000 $ 2,657 The City sold $1,660,000 of Open Space Referendum Bonds in 2010 to finance the purchase of land to remain as open space. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 133 This page left blank intentionally. 134 CITY OF ANDOVER, MINNESOTA 2022 ANNUAL BUDGET 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. 135 This page left blank intentionally. 136 City of Andover Capital Projects Funds 2022 Budget Summary - All Capital Projects Funds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted Description _' 2020 2021 2021 20212 Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Bond Proceeds Bond Premium Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Debt Service - Principal Retirement Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses Fund Balance, December 31 Change in Fund Balance $ 40,168,106 $ 29,666,049 $ 29,666,049 $ 27,824,381 2,031,574 100,979 631,999 2,884,886 730,667 1,642,795 417,654 8,440,554 1,817,676 1,310,000 95,481 3,000 3,226,157 11, 666,711 51,834,817 3,374,026 18,286,378 273,478 21,933,882 234,886 22,168,768 $ 29,666,049 $ (10,502,057) -26% 137 2,068,577 85,000 671,000 176,572 117,500 266,610 170,000 3,555,259 770,081 770,081 4,325,340 33,991,389 4,219,000 2,067,000 6,286,000 351,309 6,637,309 $ 27,354,080 $ (2,311,969) -8% 2,068,577 100,000 751,858 159,978 136,306 825,327 238,585 4,280,631 769,187 769,187 5,049,818 34,715,867 4,269,000 2,271,177 6,540,177 351,309 6,891,486 $ 27,824,381 $ (1,841,668) -6% 2,162,822 100,000 1,503,900 1,329,769 115,000 360,776 502,000 6,074,267 986,888 7,960,000 8,946,888 15,021,155 42,845,536 155,000 9,889,500 2,534,000 12,578,500 716,020 13,294,520 $ 29,551,016 $ 1,726,635 6% City of Andover Capital Projects Funds Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 4,822,716 $ 5,902,419 $ 5,902,419 $ 6,356,320 48,242 50,000 82,000 50,000 131,533 25,000 30,000 25,000 873,581 79,300 460,606 82,478 1,053,356 154,300 572,606 157,478 300,000 300,000 1,353,356 454,300 6,176, 072 300,000 300,000 872,606 457,478 6,356,719 6,775,025 196,625 - 17,288 270,000 213,913 270,000 59,740 148,705 273,653 418,705 $ 5,902,419 $ 5,938,014 Change in Fund Balance $ 1,079,703 $ 35,595 22% 1% 6,813,798 - 1,655,000 270,000 260,000 270,000 1,915,000 148,705 152,877 418,705 2,067,877 $ 6,356,320 $ 4,745,921 $ 453,901 $ (1,610,399) 8% -25% 138 Fund: 4110 Cost Center: Water Trunk Activity Type/Code: Capital Projects Expenditure Hip-h1i2hts Projects planned for 2022 include: New Development Projects $ 60,000 Water Main Gate Valve Replacement 200,000 Recondition & Paint Water Tower #2 1,655,000 $ 1,915,000 Projects planned for 2021 include: New Development Projects $ 55,000 Water Main Gate Valve Replacement 200,000 Recondition & Paint Water Tower #2 15,000 $ 270,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. Department Head: City Engineer General Activity Description The Water Trunk Capital Projects Fund accounts for water access fees and trunk improvements as part of development. Process Used The water system is continually reviewed by the Engineering and Water Departments through studies of service, water quality, and future system expansion or improvements. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 139 City of Andover Capital Projects Funds Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2019 2020' 2020 2021 Fund Balance, January 1 Revenues Special Assessments Investment Income User Charges Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 7,236,874 $ 8,079,582 $ 8,079,582 $ 8,571,761 30,089 20,000 67,458 20,000 174,256 50,000 50,000 50,000 263,301 12,910 99,721 13,298 467,646 82,910 217,179 83,298 400,000 400,000 400,000 400,000 867,646 482,910 617,179 483,298 8,104,520 8,562,492 8,696,761 9,055,059 4,651 - - - 20,287 125,000 125,000 125,000 24,938 125,000 125,000 125,000 24,938 125,000 125,000 125,000 $ 8,079,582 $ 8,437,492 $ 8,571,761 $ 8,930,059 Change in Fund Balance $ 842,708 12% $ 357,910 $ 492,179 $ 358,298 4% 6% 4% 140 Fund: 4120 os Center: Sewer Trunk Activity Type/Code: Capital Projects Expenditure Hi2hkhts Projects planned for 2022 include: New Development Projects $ 125,000 Projects planned for 2021 include: New Development Projects $ 125,000 Department Head: City Engineer General Activitv Desciption The Sewer Trunk Capital Projects Fund accounts for access fees and sanitary sewer improvements. City sewage flows through a pipe and lift station system to a large sewer interceptor, which is then carried to a metro treatment plant. Process Used The Sewer and Engineering Departments continually review the system to determine the proper sizing of pipes and lift stations to process sewage. ADOPTED 2022 BUDGET CITY Of ANDOVER, MINNESOTA 141 City of Andover Capital Projects Funds Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 5,659,899 $ 8,804,203 $ 8,804,203 $ 7,444,534 Revenues General Property Taxes 1,388,355 1,448,577 1,448,577 1,517,822 Special Assessments 549,453 600,000 600,000 1,431,500 Intergovernmental 2,811,862 176,572 148,754 1,329,769 Investment Income 183,155 - - - Total Revenues: 4,932,825 2,225,149 2,197,331 4,279,091 Other Sources Transfers In 1,005,700 5,000 5,000 7,400 Total Revenues and Other Sources: 5,938,525 2,230,149 2,202,331 4,286,491 Total Available: 11,598,424 11,034,352 11,006,534 11,731,025 Expenditures Other Services and Charges 2,667,008 3,562,000 3,562,000 2,194,000 Capital Outlay 127,213 - - - Total Expenditures: 2,794,221 3,562,000 3,562,000 2,194,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 2,794,221 3,562,000 3,562,000 2,194,000 Fund Balance, December 31 $ 8,804,203 $ 7,472,352 $ 7,444,534 $ 9,537,025 Change in Fund Balance $ 3,144,304 $ (1,331,851) $ (1,359,669) $ 2,092,491 56% -15% -15% 28% 142 Fund: 4140 Cost enter: Road and Bridge Activity Type/Code: Capital Projects Expenditure Highlights Some of the major 2022 projects are as follows: Annual Street Crack Seal $ 180,000 Pedestrian Trail Maintenance 60,000 Curb, Sidewalk & Ped Ramp Replacement 105,000 Annual Pavement Markings 60,000 Gravel Road Improvements 19,000 MSA - New & Reconstruct Routes 1,600,000 MSA - Mill & Overlay 170,000 R 2.194.000 Some of the major 2021 projects are as follows: Annual Street Crack Seal $ 170,000 Pedestrian Trail Maintenance 66,000 Curb, Sidewalk & Ped Ramp Replacement 100,000 Annual Pavement Markings 58,000 Gravel Road Improvements 18,000 Mill & Overlays 2,400,000 Pedestrian Crossings 200,000 Pedestrian / Park Trail Reconstruction 550,000 R 3.562.000 DepartmentHead: City Engineer General Activity Description The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Prnrvcc Ucpd Construction projects are identified by the capital improvement process and contained in the five-year Capital Improvement Plan (CIP). The council approves the CIP annually, thereby initiating a process of feasibility study, preparation of plans and specifications, public hearings, ordering of the project, bidding the project and construction. This fund also accounts for the pavement management program, which includes annual seal coating, crack sealing and overlays for roads. ADOPTED 2022 BUDGET CITY OF ANDOVER. MINNESOTA 143 City of Andover Capital Projects Funds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 739,256 $ 721,300 $ 721,300 $ 592,422 14,722 15,000 73,024 - 12,873 - 389,033 139,000 12,739 - 502,391 154,000 502,391 154,000 1,241,647 875,300 8,955 15,000 336,246 230,000 345,201 245,000 175,146 202,604 520,347 447,604 $ 721,300 $ 427,696 $ (17,956) $ (293,604) -2% -41 % 15,000 15,000 3,500 - 220,000 220,000 23,155 - 261,655 235,000 261,655 235,000 982,955 827,422 15,000 25,000 172,929 197,000 187,929 222,000 202,604 163,143 390,533 385,143 $ 592,422 $ 442,279 $ (128,878) $ (150,143) -18% -25% 144 Fund: 4150 Cost Center: Park Dedication Projects Activity e/ o e: Capital Projects Expenditure Hiahliahts 2022 Projects include: Annual Miscellaneous Projects $ 25,000 Pine Hills North - Phase II parking lot 120,000 Pine Hills South - Parking lot 67,000 Oak Bluff - New basketball court 10,000 222,000 2021 Projects include: Annual Miscellaneous Projects $ 15,000 Prairie Knoll Park - North Parking Lot Improvement 230,000 $ 245,000 A portion of park dedication fees collected will be used to offset the debt service levy for the Community Center expansion, not to exceed $1,000,000. 2020 $ 175,146 2021 202,604 2022 163,143 $ 540,893 DepartmentHead: City Engineer General Activity Desciption The Park Dedication Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's park system. Process Used The Park and Recreation Commission evaluates the needs of the community with regard to park and recreation facilities. Recommendations are made to the City Council and projects are then placed into the annual City Capital Improvement Plan. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 145 City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 529,633 $ 643,852 $ 643,852 $ 588,763 Revenues General Property Taxes 354,450 355,000 355,000 355,000 Intergovernmental - - 11,224 - Investment Income 11,501 - 5,000 - Total Revenues: 365,951 355,000 371,224 355,000 Other Sources Transfers In 88,476 41,581 40,687 - Total Revenues and Other Sources: 454,427 396,581 411,911 355,000 Total Available: 984,060 1,040,433 1,055,763 943,763 Expenditures Other Services and Charges 66,730 467,000 467,000 328,000 Debt Service - Principal Retirement 273,478 - - - Total Expenditures: 340,208 467,000 467,000 328,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 340,208 467,000 467,000 328,000 Fund Balance, December 31 $ 643,852 $ 573,433 $ 588,763 $ 615,763 Change in Fund Balance $ 114,219 $ (70,419) $ (55,089) $ 27,000 22% -11 % -9% 5% 146 Fund: 4160 Cost Center: Building Fund Activity Type/Code: Capital Projects Expenditure Hi2hkhts Projects planned for 2022 include: Replacement - CH parking lot $ 275,000 Replacement - PW roof top unit 45,000 Replacement - CH furnace 8,000 $ 328,000 Projects planned for 2021 include: Annual parking lot maintenance $ 40,000 Replacement - Tube Heaters PW 80,000 Security Camera Software Upgrade 7,000 Replacement - Refinish PW exterior panels 250,000 New - 1/2 ton pick up truck 4x4 45,000 New - Diesel Exhaust Capturing System FS #1 45,000 $ 467,000 Department Head: Finance Director General Activity Description The Building Fund accounts for miscellaneous building improvement projects for all facilities, including land acquisitions. Process Used Facilities are reviewed annually for non -recurring repairs or for future facility needs. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 147 City of Andover Capital Projects Funds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 91,870 $ 110,647 $ 110,647 $ 140,647 Revenues Investment Income 2,801 - - - User Charges 116,880 35,400 45,000 45,000 Miscellaneous - 100,000 - 115,000 Total Revenues: 119,681 135,400 45,000 160,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 119,681 135,400 45,000 160,000 Total Available: 211,551 246,047 155,647 300,647 Expenditures Other Services and Charges 10,695 - - - Capital Outlay 90,209 100,000 15,000 - Total Expenditures: 100,904 100,000 15,000 - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 100,904 100,000 15,000 - Fund Balance, December 31 $ 110,647 $ 146,047 $ 140,647 $ 300,647 Change in Fund Balance $ 18,777 $ 35,400 $ 30,000 $ 160,000 20% 32% 27% 114% 148 Fund: 4170 Cost enter: Trail & Transportation Activity Type/Code: Capital Projects Expenditure Hii!hlii!hts No projects planned for 2022. 2021 projects include: Railroad Underpass Analysis $ 15,000 Department ea: Dir of PW / City Engineer General Activity Description The Trail and Transportation Capital Projects Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's Trail System. Process Used The Park and Recreation Commission evaluates the needs of the community with regard to trail facilities. Recommendations are made to the City Council and projects are then placed into the annual City Capital Improvement Plan. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 149 City of Andover Capital Projects Funds Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 Revenues General Property Taxes Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Proceeds from Sale of Capital Assets Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 1,759,050 $ 1,772,530 $ 1,772,530 $ 1,889,030 274,047 250,000 37,894 - 43,886 - 355,827 250,000 23,500 23,500 3,000 - 382,327 273,500 2,141,377 2,046,030 153,683 25,000 215,164 192,000 368,847 217,000 368,847 217,000 $ 1,772,530 $ 1,829,030 $ 13,480 $ 56,500 1% 3% 250,000 275,000 10,000 - 50,000 287,000 310,000 562,000 23,500 109,488 333,500 671,488 2,106,030 2,560,518 25,000 52,500 192,000 717,000 217,000 769,500 217,000 769,500 $ 1,889,030 $ 1,791,018 $ 116,500 $ (98,012) 7% -5% 150 Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type/Code: Capital Projects Expenditure Highlights Projects outlined in the 2022 - 2026 CIP for year 2022 using the Capital Equipment Reserve Capital Projects Fund include: Using 2022 Capital Projects Reserve / levy: New - Mobile CAD Fire $ 12,000 Replacement - 800 MHz Radios 50,000 Replacement - Tractor #515 25,000 Replacement - Toro Workman #565 13,000 Pine Hills North - Pave Parking Lot 280,000 Emergency Operations Center Improvement 15,000 Replacement - Emergency Sirens 50,000 Dog Park - Trail & Parking Lot Paving 37,500 Replacement - Grass / Rescue Vehicle 275,000 New - Digital Fire Extinguisher Training System 12,000 $ 769,500 " Grant Using 2021 Capital Projects Reserve / levy: Replacement - Cushman Field Dresser $ 30,000 Replacement - Trailer 20,000 New - Turbine Tow -Behind Blower 10,000 New - Extrication Combination Tool 12,000 New - 3/4 Ton Truck s/ Snow removal equipment 70,000 Financial / Payroll System Upgrade 15,000 Replacement - Emergency Sirens 50,000 Emergency Operations Center Improvement 10,000 $ 217,000 Department Head: Finance Director General Activity Description Resources for this fund come from residual fund transfers, interest earnings, and property tax (capital) levy. Process Used During the budget processes, it was determined that various capital expenditures were necessary. The Andover Management Team and Andover Vehicle Purchasing Committee reviewed departmental needs and prioritized capital needs. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 151 City of Andover Capital Projects Funds 2020A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ - $ 829,537 $ 829,537 $ - Revenues Investment Income 28,830 - (11,394) - Other Sources Bond Proceeds 1,310,000 - - - Bond Premium 95,481 - - - Total Other Sources: 1,405,481 - - - Total Revenues and Other Sources: 1,434,311 - (11,394) - Total Available: 1,434,311 829,537 818,143 - Expenditures Other Services and Charges 38,216 - - - Capital Outlay 566,558 - 818,143 - Total Expenditures: 604,774 - 818,143 - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 604,774 - 818,143 - Fund Balance, December 31 $ 829,537 $ 829,537 $ - $ - Change in Fund Balance $ 829,537 $ - $ (829,537) $ - n/a 0% -100% n/a 152 Fund: 4214 Cost enter: 2020A G.O. Equipment Certificates Activity Type/Code: Capital Projects Expenditure Hiuhliuhts The following is a list of equipment purchased with a 2020 Capital Note. Vehicle / Equipment Replacements Replacement - 3/4 Ton Truck #12 $ 30,000 Replacement - Fire Engine 21 #4884 660,000 Replacement - SCBA Compressor 65,000 Replacement - Front End Loader #124 195,000 Replacement - One Ton Truck w/ Plow #133 75,000 New- Slide In Hotbox 18,000 Replacement - Water Tanker #161 165,000 New - Large Capacity Mower 107,000 $ 1,315,000 Department ea: Finance Director General Activity Description This fund accounts for major capital equipment purchases. Resources for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5-year duration and debt service is funded via the annual tax levy. Process Used During the 2020 budget process, it was determined that various capital equipment was necessary. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 153 City of Andover Capital Projects Funds 2021A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 Revenues Investment Income - - - - Total Revenues: - - - - Other Sources Transfers In - - - 170,000 Bond Proceeds - - - 630,000 Total Other Sources: - - - 800,000 Total Revenues and Other Sources: - - - 800,000 Total Available: - - - 800,000 Expenditures Purchased Services - - - 15,000 Capital Outlay - - - 785,000 Total Expenditures: - - - 800,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - - 800,000 Fund Balance, December 31 $ Change in Fund Balance $ - $ - $ - $ - n/a n/a n/a n/a 154 Fund: 4215 Cost enter: 2021A G.O. Equipment Certificates Activity Type/Code: Capital Projects Expenditure Hiuhliuhts The following is a list of equipment planned to be purchased with a 2021 G.O Equipment Certificate. Vehicle / Equipment Replacements: New- First Response Vehicle $ 70,000 New - Zero Turn Mower 10,000 Replacement - Large Capacity Mower #585 130,000 New - Dump Truck w/ Snow Removal Equipment 250,000 Replacement - Asphalt Roller 20,000 Replacement - Dump Truck w/ Snow Removal Equipment 255,000 Replacement - Pickup Truck #6 50,000 $ 785,000 Department ea: Finance Director General Activity Description This fund accounts for major capital equipment purchases. Resources for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5-year duration and debt service is funded via the annual tax levy. Process Used During the 2022 budget process, it was determined that various capital equipment was necessary. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 155 City of Andover Capital Projects Funds 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 3,255,415 $ 39,943 $ 39,943 $ - Revenues Investment Income 12,717 - 1,000 - Miscellaneous 2,632 - - - Total Revenues: 15,349 - 1,000 - Other Sources Transfers In - - - - Total Revenues and Other Sources: 15,349 - 1,000 - Total Available: 3,270,764 39,943 40,943 - Expenditures Capital Outlay 3,230,821 - 40,943 - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 3,230,821 - 40,943 - Fund Balance, December 31 $ 39,943 $ 39,943 $ - $ - Change in Fund Balance $ (3,215,472) $ - $ (39,943) $ - -99% 0% -100% n/a 156 Fund: 4303 Cost enter: 2018A G.O. Capital Improvement Plan Bonds Activity Type/Code: Capital Projects Expenditure Hiuhliuhts It is anticipated that architectural fees and construction would cost about $10,300,000. The land was purchased in previous years in anticipation of relocating the Maintenance Garage and Cost Storage Building in this area. Department ea: Finance Director General Activity Description This fund was created to account for the construction of the Maintenance Garage and Cold Storage Building on the west side of the city campus. The City issued 2018A G.O. Capital Improvement Plan Bonds in the amount of $10,000,000 to finance the construction. Process Used During the master campus study / analysis, it was determined that a new maintenance garage was needed with all the additional equipment that has been added, in addtion to, the size of the vehicles. Also needed is a structure to house all the seasonal equipment that doesn't currently fit into a building, which would increase the longevity of the equipment. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 157 City of Andover Capital Projects Funds 2019A G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 11,462,922 $ 176,032 $ 176,032 $ - Revenues Investment Income 56,695 - 5,700 - Miscellaneous 258,250 - 5,430 - Total Revenues: 314,945 - 11,130 - Other Sources Transfers In - - - - Total Revenues and Other Sources: 314,945 - 11,130 - Total Available: 11,777,867 176,032 187,162 - Expenditures Capital Outlay 11,601,835 - 187,162 - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 11,601,835 - 187,162 - Fund Balance, December 31 $ 176,032 $ 176,032 $ - $ - Change in Fund Balance $ (11,286,890) $ - $ (176,032) $ - -98% 0% -100% n/a 158 Cost Center: 2019 G.O. Abatement Bonds Activity Type/Code: Capital Projects Expenditure Hi2hli2hts It is anticipated that architectural fees and construction would cost about $17,500,000 and would be an addition to the current facility to include a multi -purpose arena (ice switching to turf), additional senior / youth space and a additional field house court. Department : Finance Director General Activity Description This fund was created to account for the construction of the Community Center expansion project. The City issued 2019A G.O. Taxable Abatement Bonds in the amount of $15,770,000 to finance the construction. Process Used As part of the master campus study / analysis, it was determined that an additional multi -purpose facility was needed as well as additional field house and senior/youth space. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 159 City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 3,436,278 $ 1,381,678 $ 1,381,678 $ 1,026,678 Revenues Tax Increments 100,979 85,000 100,000 100,000 Investment Income 52,494 35,000 35,000 35,000 Miscellaneous 100,147 70,000 160,000 100,000 Total Revenues: 253,620 190,000 295,000 235,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 253,620 190,000 295,000 235,000 Total Available: 3,689,898 1,571,678 1,676,678 1,261,678 Expenditures Other Services and Charges 227,463 150,000 200,000 235,000 Capital Outlay 2,080,757 1,150,000 450,000 450,000 Total Expenditures: 2,308,220 1,300,000 650,000 685,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 2,308,220 1,300,000 650,000 685,000 Fund Balance, December 31 $ 1,381,678 $ 271,678 $ 1,026,678 $ 576,678 Change in Fund Balance $ (2,054,600) $ (1,110,000) $ (355,000) $ (450,000) -60% -80% -26% -44% 160 Fund: 4501 s enter: Tax Increment Projects Activity Type/Code: Capital Projects Expenditure Hi2hkhts 2022 Budgeted expenditures include: Redevelopment Site Purchases $ 450,000 Pay -As -You -Go Note 65,000 Rental Property Expenditures 150,000 TIF Administration 20,000 $ 685,000 2021 Budgeted expenditures include: Redevelopment Site Purchases $ 1,150,000 Pay -As -You -Go Note 65,000 Rental Property Expenditures 76,500 TIF Administration 8,500 $ 1,300,000 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. TIF District 1-3 and TIF District 1-4 was decertified in 2016. Department Head: Finance Director General Activity Description The Tax Increment Projects Fund accounts for activities in TIF districts 1-1, 1-2, 1-3, 1-4, 1-5 and 1-6 and all TIF land sales and expenditures to reach the goals of the TIF district plans. Process Used Promotion and expansion of the commercial / industrial tax base through redevelopment of land. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA on City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 $ 1,174,193 $ 1,204,326 $ 1,204,326 $ 1,214,226 Revenues Special Assessments 4,215 1,000 2,400 2,400 Investment Income 25,918 7,500 7,500 5,000 Total Revenues: 30,133 8,500 9,900 7,400 Other Sources Transfers In - - - - Total Revenues and Other Sources: 30,133 8,500 9,900 7,400 Total Available: 1,204,326 1,212,826 1,214,226 1,221,626 Expenditures Other Services and Charges - - - - Other Uses Operating Transfers Out - - - 400,000 Total Expenditures and Other Uses: - - - 400,000 Fund Balance, December 31 $ 1,204,326 $ 1,212,826 $ 1,214,226 $ 821,626 Change in Fund Balance $ 30,133 $ 8,500 $ 9,900 $ (392,600) 3% 1 % 1 % -32% 162 Fund: 4601 Cost Center: Permanent Improvement Revolving Activity Type/Code: Capital Projects Expenditure Hip-hli2hts No expenditures are planned for 2022. City Council approved to use PIR Funds to help offset the debt service payments related to the 2021A GO Street Reconstruction Bonds. The following transfers are scheduled: Operating Tra n cfa rc 2022 $ 400,000 2023 200,000 2024 150,000 2025 150,000 2026 100,000 2027 100,000 2028 50,000 2029 50,000 $ 1,200,000 Department Head: Finance Director General Activitv Description The Permanent Improvement Revolving (PIR) Fund serves as a long-term funding source for large improvement expenditures. These funds can be used to finance infrastructure improvements for new developments if requested instead of bonding for them. Process Used The City has issued four bonds totaling $15.4 million thru 2008 in the PIR Fund for large capital projects. This fund has collected over $19 million of special assessments over the past 17 years. The annual cash flow of this fund is intended to eliminate unfunded projects through effective management of debt payments and project expenditures. Use of these funds for a qualifying project require a 4/5th's vote. ADOPTED 2022 BUDGET CITY Of ANDOVER, MINNESOTA 163 City of Andover Capital Projects Funds 2021A G.O. Street Reconstruction Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Description 2020 2021' 2021 2022 Fund Balance, January 1 Revenues Investment Income - - - - Other Sources Bond Proceeds - - - 7,330,000 Total Revenues and Other Sources: - - - 7,330,000 Total Available: - - - 7,330,000 Expenditures Purchased Services - - - 140,000 Other Services and Charges - - - 5,400,000 Total Expenditures: - - - 5,540,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - - 5,540,000 Fund Balance, December 31 $ - $ - $ - $ 1,790,000 Change in Fund Balance $ - $ - $ - $ 1,790,000 n/a n/a n/a n/a 164 Fund: 4703 Cost enter: 2021A G.O. Street Reconstruction Bonds Activity Type/Code: Capital Projects Expenditure Hiuhliuhts It is proposed that $7,330,000 in bond proceeds be issued to make improvements to various roads in the City of Andover. Some of the major 2022 projects are as follows: R & B - New & Reconstruct Routes $ 3,400,000 R & B - Mill & Overlays 2,000,000 $ 5,400,000 Department ea: Finance Director General Activity Description This fund was created to account for the reconstruction of the roadways in the City of Andover. The City is proposing to issue $7,330,000 G.O. Street Reconstruction Bonds to finance these improvements. Process Used Large projects that require more funding that the annual allocation lead themselves to being financed through a long-term issuance of bonds. Roads are inspected every three years and the road conditions in Andover are deteriorating to the point where an aggressive reconstruction and mill and overlay program is needed to keep the City's roadway infrastructure at a reasonable level. Large areas will have a mill and overlay done to prolong the life of the existing pavement to add another 10 - 15 years of life and roads that are to the point of complete failure will be fully reconstructed. ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA 165 This page left blank intentionally. 166 CITY OF ANDOVER, MINNESOTA 2022 ANNUAL BUDGET 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. 167 This page left blank intentionally. 168 City of Andover Enterprise Funds 2022 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adopted Description, 2020 2t)21 2021 2022 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 9,863,443 $ 10,915,144 $ 10,915,144 $ 10,030,706 6,196,717 176,420 36,948 65,135 6,475,220 59,740 6,534,960 16,398,403 1,127,866 274,316 2,335,090 786,499 4,523,771 959,488 5,483,259 $ 10,915,144 $ 1,051,701 11% 169 5,526,873 61,000 13,000 65,000 5,665,873 148,705 5,814,578 16,729,722 1,241,223 462,800 2,416,915 1,210,000 780,500 6,111,438 980,831 7,092,269 $ 9,637,453 $ (1,277,691) -12% 5,996,626 65,000 13,000 65,000 6,139,626 148,705 6,288,331 17,203,475 1,241,223 498,300 2,461,915 1,210,000 780,500 6,191,938 980,831 7,172,769 $ 10,030,706 $ (884,438) -8 % 5,867,738 62,500 13,000 44,000 5,987,238 152,877 6,140,115 16,170,821 1,319,670 506,800 2,577,222 110,000 784,500 5,298,192 965,881 6,264,073 $ 9,906,748 $ (123,958) -1% City of Andover Enterprise Funds Water Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adopted Description, 2020 2t)21 2021 2022 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 5,215,944 $ 5,954,779 $ 5,954,779 $ 5,077,106 3,248,856 100,178 36,948 63,433 3,449,415 59,740 3,509,155 8,725,099 548,413 249,625 769,158 786,499 2,353,695 416,625 2,770,320 $ 5,954,779 $ 738,835 14% 170 2,608,247 30,000 13,000 65,000 2,716,247 148,705 2,864,952 8,819,731 555,229 388,800 736,486 1,210,000 780,500 3,671,015 437,863 4,108,878 $ 4,710,853 $ (1,243,926) -21 % 3,055,000 30,000 13,000 65,000 3,163,000 148,705 3,311,705 9,266,484 555,229 424,300 781,486 1,210,000 780,500 3,751,515 437,863 4,189,378 $ 5,077,106 $ (877,673) -15% 2,760,106 30,000 13,000 44,000 2,847,106 152,877 2,999,983 8,077,089 587,993 432,800 780,486 25,000 784,500 2,610,779 418,741 3,029,520 $ 5,047,569 $ (29,537) -1% Fund:0I f 1I Activity Description Operate and maintain the City's water system including WTP, wells, towers and water mains. Provide a continuous, potable, bacteria free water supply at proper pressure levels. Maintain customer water meters and respond to other service requests. Maintain water distribution for fire protection system needs. Conform to all State and Federal monitoring rules, provide tours and information to the public. Operate wells and WTP in a manner that ensures a safe, clean and adequate water supply, that will meet peak daily demands and fire protection demands. Maintain wells, treatment facility, and related infrastructure. Operate and maintain chemical feed equipment. Collect, analyze and record water samples daily. Maintain, test and repair water meters. Respond to emergencies 24 hours a day. Work with contractors to locate watermains, locate and operate gate valves, monitor tests during final inspections. Check WTP, 8 wells, 7 days a week, 365 days per year. Flush all watermains in the spring every other year. Maintain all hydrants. Locate, operate and clean gate valves to ensure proper operation. Service Expense Hiuhliuhts Current 2021 includes an automated meter reading system ($1,210,000) since manual reading services are becoming non-existent. Performance Measures Number of connections Number of wells Number of elevated storage tanks Water Treatment Facility Miles of water main Number of hydrants Number of valves Actual Current Budgeted 2020 2021 2022 6,912 7,030 7,130 8 8 8 2 2 2 1 1 1 122 123 124 1,298 1,311 1,331 3,058 3,056 3,091 Department: friManager: Utilities Superviso Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 5.02 4.79 4.79 Actual Current Budgeted Service Expenses 2020 2021 2022 Personal Services $ 548,413 $ 555,229 $ 587,993 Supplies & Materials 249,627 424,300 432,800 Other Services / Charges 387,279 441,436 430,636 Purchased Services 379,729 340,050 349,850 Capital Outlay - 1,210,000 25,000 Debt Service 748,744 780,500 784,500 Other Uses 416,625 437,863 418,741 TOTAL $ 2,730,417 $ 4,189,378 $ 3,029,520 Service Expenses By Category ®Personal Services USupplies & Materials DOther Services / Charges OPurchased Services ®capital Outlay ®Debt Service ®Other Uses Expenses Per Connection Actual Current Budgeted 2020 2021 2022 Connections 6,912 7,030 7,130 Monthly $ 32.92 $ 49.66 $ 35.41 Annual $ 395.03 $ 595.93 $ 424.90 ADOPTED 2022 BUDGET CITY OF ANDOVER. MINNESOTA 171 City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adoptod' Description 2020 2021 2021 2022: Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out $ 4,004,969 $ 4,074,700 $ 4,074,700 $ 4,012,393 2,353,737 63,256 1,302 2,418,295 2,418,295 6,423,264 375,048 18,019 1,455,724 1,848,791 499,773 Total Expenditures and Other Uses: 2,348,564 Unrestricted Net Assets, December 31 $ 4,074,700 Change in Unrestricted Net Assets $ 69,731 2% 2,318,074 30,000 2,348,074 2,338,074 30,000 2,368,074 2,477,810 30,000 2,507,810 2,348,074 2,368,074 2,507,810 6,422,774 6,442,774 6,520,203 418,231 39,300 1,473,372 1,930,903 499,478 2,430,381 $ 3,992,393 $ (82,307) -2% 418,231 39,300 1,473,372 1,930,903 499,478 443,341 39,300 1,581,231 42,500 2,106,372 501,979 2,430,381 2,608,351 $ 4,012,393 $ 3,911,852 $ (62,307) $ (100,541) -2% -3% 172 Fund:l C ♦z *mil dill.. Activity Description City sewage is collected through a pipe and lift station network to large Metro City Sewer interceptor pipes that carry it to the Metro Treatment Plant for processing. The sewer division inspects, cleans, and maintains the City's collection system which includes breaks in pipes, manholes, and lift stations. Sewer backups caused by blockage due to debris or breaks in pipe are cleaned and/or repaired immediately. This department maintains the integrity of the entire sanitary sewer system. Process Used Inspect all lift stations five days per week. Clean one -quarter of the City's sewer collection system via jetting and vacuuming each year. City has implemented a televising program of the collection system that analyzes the entire system over a five year period. A spot check program checks flows in problem areas. Start 1/1 program to monitor inflow and infiltration into sewer system. Clean known problem area once per month. Monitor inspection and testing of all new sewer lines and manholes before accepting from contractor. Respond to and record all requests from customers, respond to emergencies 24 hours a day. Contract out all major system repairs. Service Expense Highlights No major changes planned for Budget 2022. Purchased Services is increasing $100,000 due to the Met Council wastewater charge. Performance Measures Number of SAC's Actual 2020 9,765 Current 2021 9,807 Budgeted 2022 9,907 Number of lift stations 10 11 11 Miles of sewer main 100.9 102.8 103 Number of sewer manholes 2.403 2.423 2.473 Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 3.23 3.55 3.55 Actual Current Budgeted Service Expenses 2020 2021 2022 Personal Services $ 375,048 $ 418,231 $ 443,341 Supplies & Materials 18,019 39,300 39,300 Other Services / Charges 90,020 108,222 114,278 Purchased Services 1,365,704 1,365,150 1,466,953 Capital Outlay - - 42,500 Other Uses 499,773 499,478 501,979 TOTAL $ 2,348,564 $ 2,430,381 $ 2,608,351 Service Expenses By Category Expenses Per Connection SAC'S Monthly Annual ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA ®Personal Services ®Supplies & Materials OOther Services / Charges OPurchased Services ■Capital Outlay OOther Uses Actual Current Budgeted 2020 2021 2022 9,765 9,807 9,907 $ 20.04 $ 20.65 $ 21.94 $ 240.51 $ 247.82 $ 263.28 173 City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adoptod' Description 2020 2021 2021 2022: Unrestricted Net Assets, January 1 $ 642,530 $ 885,665 $ 885,665 $ 941,207 Revenues Charges for Services 594,124 600,552 603,552 629,822 Interest 12,986 1,000 5,000 2,500 Miscellaneous 400 - - - Total Revenues: 607,510 601,552 608,552 632,322 Other Sources Transfers In - - - - Total Revenues and Other Sources: 607,510 601,552 608,552 632,322 Total Available: 1,250,040 1,487,217 1,494,217 1,573,529 Expenditures Personal Services 204,405 267,763 267,763 288,336 Supplies and Materials 6,672 34,700 34,700 34,700 Other Services and Charges 110,208 207,057 207,057 215,505 Capital Outlay - - - 42,500 Total Expenditures: 321,285 509,520 509,520 581,041 Other Uses Transfers Out 43,090 43,490 43,490 45,161 Total Expenditures and Other Uses: 364,375 5537010 553,010 626,202 Unrestricted Net Assets, December 31 $ 885,665 $ 934,207 $ 941,207 $ 947,327 Change in Unrestricted Net Assets $ 243,135 $ 48,542 $ 55,542 $ 6,120 38% 5% 6% 1% 174 Fund: 5300 - Storm Sewer Cost enter: 48300 Activitv Description Maintenance of all storm sewers, catch basins, manholes, pipes, ditches, and sediment ponds. Process Used The ditches and storm water ponds are cleaned with a backhoe for better drainage and to avoid the ponding of stagnant water. This dirt is hauled away or dumped in low places on ditch banks. When it is dumped on site, it becomes necessary to level and grade the banks to facilitate proper mowing. All catch basins and pipes are inspected and cleaned with a vac truck. The material is then hauled away for proper disposal. Occasional use of outside contractors to maintain parts of the system. Televising a portion of the system each year to help comply with new state and federal regulations. Streets are swept twice a year and as needed to protect water quality and reduce maintenance to infrastructure. Service Expense Highlights Actual Current Budgeted Performance Measures 2020 2021 2022 Number of billable units 11,249 11,304 11,339 Mileage of storm lines maintained 81.35 84.7 85.5 Maint. of catch basins & manholes 4,123 4,177 4,220 Department: Storm Sewer Director/Manager: Utility Supervisor Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 1.90 2.60 2.58 Actual Current Budgeted Service Expenses 2020 2021 2022 Personal Services $ 204,405 $ 267,763 $ 288,336 Supplies & Materials 6,672 34,700 34,700 Other Services / Charges 44,058 57,957 60,405 Purchased Services 66,150 149,100 155,100 Capital Outlay - - 42,500 Other Uses 43,090 43,490 45,161 TOTAL $ 364,375 $ 553,010 $ 626,202 Service Expenses By Category ®Personal Services ®Supplies & Materials 00ther Services / Charges oPurchased Services ®Capital Outlay 00ther Uses Actual Current Budgeted Maint. of ponds 320 550 555 Expenses Per Customer Billable Units Monthly Annual 2020 2021 11,249 11,304 $ 2.70 $ 4.08 $ 32.39 $ 48.92 2022 11,339 $ 4.60 $ 55.23 Maint. of culverts 373 360 360 Miles swept 410 488 498 Storm Lift Stations 1 1 1 ADOPTED 2022 BUDGET CITY Of ANDOVER, MINNESOTA 175 This page left blank intentionally. 176 CITY OF ANDOVER, MINNESOTA 2022 ANNUAL BUDGET 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. 177 This page left blank intentionally. 178 City of Andover Internal Service Funds 2022 Budget Summary - All Internal Service Funds Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Actual Adopted Estimate Adopted Description 2020 2021 2021 2022: Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 1,062,139 $ 1,015,847 $ 1,015,847 $ 858,021 1,217,279 17,205 72,329 1,306,813 1,306,813 2,368,952 530,553 335,851 486,701 1,353,105 1,353,105 $ 1,015,847 $ (46,292) -4% 1,319,834 4,000 1,323,834 1,323,834 2,339,681 550,219 416,700 486,991 1,453,910 1,453,910 $ 885,771 $ (130,076) -13% 1,319,834 4,000 22,448 1,346, 282 1,346,282 2,362,129 545,219 380,248 578,641 1,504,108 1,504,108 $ 858,021 $ (157,826) -16% 1,433,715 4,000 1,437,715 1,437,715 2,295,736 612,590 415,700 584,141 1,612,431 1,612,431 $ 683,305 $ (174,716) -20% 179 City of Andover Internal Service Funds Central Equipment Maintenance Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adopted Description 2020 2021 2021 2022: Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out $ 420,607 $ 370,853 $ 370,853 $ 292,818 733,944 812,364 812,364 898,000 7,040 2,000 2,000 2,000 10,962 - 6,300 - 751,946 814,364 820,664 900,000 751,946 814,364 820,664 900,000 1,172,553 1,185,217 1,191,517 1,192,818 339,196 339,008 339,008 360,744 303,348 387,900 350,400 385,900 159,156 233,141 209,291 210,291 801,700 960,049 898,699 956,935 Total Expenditures and Other Uses: 801,700 Unrestricted Net Assets, December 31 $ 370,853 Change in Unrestricted Net Assets $ (49,754) -12% 9605049 898,699 956,935 $ 225,168 $ 292,818 $ 235,883 $ (145,685) $ (78,035) $ (56,935) -39% -21 % -19% 180 Fund: 6100 - Central Equipment Cost enter: 48800 Activity Description Maintains and repairs all City motorized and non -motorized vehicles and equipment to provide safe operation. Evaluates equipment needs, orders equipment/vehicles and writes specifications. The department maintains nearly 900 pieces of equipment, in addition to normal preventative maintenance procedures of tires, brakes, electrical, fabricating and body work. All work; except automatic transmission overhauls, major engine and body work are done at the Public Works garage. Staff inspects garbage trucks as part of their licensure process, and performs commercial vehicle inspections required on all applicable City vehicles including the Fire Department. Process Used City equipment is scheduled for normal service by miles driven or hours/days of service. Most work is done based on a first -in -first -out with the exception of that emergency repairs are done in the order of importance. Emergency equipment are fire vehicles and snow snow removal equipment. Service Expenditure Highlights Personal Services changed primarily due to a COLA change. Other Services / Charges includes the utilities of the new vehicle maintenance facility and washbay added in 2020. Fuel usage has gone up due to limiting one staff member per vehicle for COVID-19 restrictions. Performance Measures Number of motorized equipment Number of non -motorized equipment Inspections Fuel - Unleaded (gal) Fuel - Diesel (gal) Actual 2020 328 500 112 14,681 34,624 Current 2021 335 505 115 14,316 31,521 Budgeted 2022 344 513 120 20,000 40,000 Department: Vehicle Maintenance Director/Manager: Vehicle Maintenance Supervisor Actual Staffing Levels 2020 FTE Equivalents 3.39 Actual Service Expenditures 2020 Personal Services $ 339,196 Supplies & Materials 303,349 Other Services / Charges 95,849 Purchased Services 63,307 TOTAL $ 801,701 Service Expenditures By Category Current Budgeted 2021 2022 3.34 3.34 Current Budgeted 2021 2022 $ 339,008 $ 360,744 350,400 385,900 118,882 128,382 90,409 81,909 $ 898,699 $ 956,935 ®Personal Services m Supplies & Materials OOther Services / Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2020 2021 2022 Population - Estimates 33,448 33,650 33,850 Monthly $ 2.00 $ 2.23 $ 2.36 Annual $ 23.97 $ 26.71 $ 28.27 ADOPTED 2022 BUDGET CITY OF ANDOVER, MINNESOTA in City of Andover Internal Service Funds Risk Management Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Actual Adopted Estimate Adopted Description 2020 2021 2021 2022: Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out $ 641,532 $ 644,994 $ 644,994 $ 565,203 483,335 507,470 507,470 535,715 10,165 2,000 2,000 2,000 61,367 - 16,148 - 554,867 509,470 525,618 537,715 554,867 509,470 525,618 537,715 1,196,399 1,154,464 1,170, 612 1,102,918 191,357 211,211 206,211 251,846 32,503 28,800 29,848 29,800 327,545 253,850 369,350 373,850 551,405 493,861 605,409 655,496 Total Expenditures and Other Uses: 551,405 Unrestricted Net Assets, December 31 $ 644,994 Change in Unrestricted Net Assets $ 3,462 1% 4935861 605,409 655,496 $ 660,603 $ 565,203 $ 447,422 $ 15,609 $ (79,791) $ (117,781) 2% -12% -21 % 182 Fund: 6200 - Risk Management Cost Center: 48900 Activity Description The Risk Management Fund was established to provide funding for compensated absences, safety, training, loss reduction and insurance premium deductibles. Social security and Medicare tax savings resulting from participation in the "cafeteria plan" are recorded in this fund on an annual basis. This fund also functions to mitigate significant rate increases or decreases. Departmental rates are managed by analyzing claims history. Process Used The City Administrator / Finance Director along with the Human Resources Manager promote various safety and wellness programs with the funding received. One of the most notable products is the wellness fitness room. Safety training is provided both in-house and by contracting for service. The city works through a broker and is provided insurance for general liability, automotive and workers' compensation through the League of MN Cities Insurance Trust. Service Expenditure Highlights No major changes planned for Budgeted 2022. Workers Comp premium and commercial insurance continues to increase. Actual Current Budgeted Performance Measures 2020 2021 2022 Workers Comp Mod Factor 0.82 0.74 0.87 Commercial Insurance Change 0.0 2.1% 4.5% Department: Risk Management Director/Manager: Finance Director Actual Current Budgeted Staffing Levels 2020 2021 2022 FTE Equivalents 0.10 0.10 0.10 Actual Current Budgeted Service Expenditures 2020 2021 2022 Personal Services $ 191,357 $ 206,211 $ 251,846 Supplies & Materials 32,503 29,848 29,800 Other Services / Charges 247,025 272,100 286,600 Purchased Services 80,520 97,250 87,250 TOTAL $ 551,405 $ 605,409 $ 655,496 Service Expenditures By Category ®Personal Services ®Supplies & Materials oOther Services / Charges oPurchased Services Actual Current Budgeted Expenditures Per Capita 2020 2021 2022 Population - Estimates 33,448 33,650 33,850 Monthly $ 1.37 $ 1.50 $ 1.61 Annual $ 16.49 $ 17.99 $ 19.36 ADOPTED 2021 BUDGET CITY OF ANDOVER, MINNESOTA 183 This page left blank intentionally. 184 Transfer In CITY OF ANDOVER Budget Year 2022 Operating Transfers Transfer Out Amount Purpose General Fund Water EF $ 96,091 Admin allocation General Fund Sewer EF 79,329 Admin allocation General Fund Storm Sewer EF 21,661 Admin allocation Economic Development Authority SRF General Fund 150,000 Concrete median 2012C GO Abatement Bonds DSF Community Center SRF 300,000 Debt service allocation 2018A GO Capital Improvement Plan Bonds DSF Water EF 22,650 Debt service allocation 2018A GO Capital Improvement Plan Bonds DSF Sewer EF 22,650 Debt service allocation 2019A GO Taxable Abatement Bonds DSF Park Dedication CPF 163,143 Debt service allocation 2021A GO Street Reconstruction Bonds DSF Permanent Improvement Revolving CPF 400,000 Debt service allocation Water Trunk CPF Water EF 300,000 Replacement reserve Sewer Trunk CPF Sewer EF 400,000 Replacement reserve Road and Bridge CPF Right of Way Management/Utility SRF 7,400 Roadway degredation Capital Equipment Reserve CPF 2010A GO Open Space Referendum DSF 85,988 Close debt service fund Capital Equipment Reserve CPF Storm Sewer EF 23,500 Debt service allocation 2022 GO Equipment Certificates CPF 2021 GO Equipment Certifices 170,000 2021 Equipment levy Water EF Water Trunk CPF 152,877 Debt service allocation $ 2,395,289 185 CITY OF ANDOVER 2022 - 2026 CIP Development Calendar Date Activity Responsibility February 10, 2021 Vehicle Purchasing Committee review of CIP equipment. Vehicle Purchasing Committee March 23, 2021 2022 - 2026 CIP Council Workshop to determine CIP guidelines. City Council / Staff April 6, 2021 Council adopts 2022 Budget Development Guidelines. City Council / Staff April 15, 2021 Vehicle Purchasing Committee review of CIP equipment. Vehicle Purchasing Committee April 27, 2021 2022 - 2026 Capital Improvement Plan Discussion City Council / Staff May 3, 2021 CIP kick-off meeting with Department Heads to discuss CIP sheet content. Department Heads May 25, 2021 City Council progress update and Council CIP priority discussion. City Council / Staff June 22, 2021 City Council progress update and Council CIP priority discussion. City Council / Staff July - August, 2021 Commission and Committee review. Admin / Department Heads July 1, 2021 CIP project sheets completed. Department Heads July 27, 2021 City Council review of City Utilities projects. City Council / Staff August 2, 2021 CIP project sheet staff final review. Admin / Department Heads August 24, 2021 City Council review of draft 2022 - 2026 CIP. City Council / Staff September 28, 2021 Council Workshop — progress report; public comment update. City Council / Staff October 19, 2021 City Council holds 2022 - 2026 CIP public hearing. City Council October 19, 2021 City Council adopts 2022 - 2026 CIP. City Council 186 City of Andover, MN Capital Plan 2022 thru 2026 PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project # Priority 2022 2023 2024 2025 2026 Total (Central Equipment Replacement - Service Truck #371 23-48800-01 2 45,000 45,000 Capital Equipment Reserve 45,000 45,000 Replace unit #371, a 2001 S10 Ext Cab 44 truck with 145,000 miles. The replacement truck would be a crew cab with a tailgate lift. Central Equipment Total Community Center Replacement - Walk Behind Floor Scrubber 22-44000-01 1 Comm Ctr Operations Replace the floor scrubber that is used daily in the community center. Exterior Caulking 22-44000-02 1 Comm Ctr Operations Cut out and replace exterior caulking between precast panel joints. New - Scissor Lift 22-44000-03 1 Comm Ctr Operations Purchase a scissor lift specifically for the community center. Carpet - Entry/Fieldhouse Foyer 23-44000-01 1 Comm Ctr Operations Replacement of carpet in office area and feldhouse foyer. Replacement - Community Center Roof 23-44000-02 1 Comm Ctr Operations Full roof replacement (rubber membrane). Reset and paint existiong gas piping. Replacement - Water Heater 23-44000-03 1 Comm Ctr Operations Replace the main water heater at the ACC. Shared expense with YMCA, shared reserve fun will be used. Replacment- Kivac Cleaning Machine 23-44000-04 1 Comm Ctr Operations 45,000 45,000 15,000 15,000 15,000 15,000 50,000 50,000 50,000 50,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 1,300,000 11300,000 1,300,000 1,300,000 80,000 80,000 80,000 80,000 8,000 8,000 8,000 8,000 187 Department Project # Priority 2022 2023 2024 2025 2026 The Kivac Cleaning machine is used in the bleachers, locker rooms and player boxes. It's an all in one power washer and wet vac system Replacement- Original Zamboni Battery Pack 23-44300-01 1 15,000 Comm Ctr Operations 15,000 Replace the battery pack for the electric Zamboni. Concrete Floor Sealant 24-44000-01 1 36,000 Comm Ctr Operations 36,000 Strip and reseal existing colored concrete floor throughout the facility. Replacement - East Parking Lot Pavement 24-44000-02 1 400,000 Comm Ctr Operations 400,000 Reclaim and pave original parking lot on east side of the Community Center and the north and south drive lanes. Replacement - Heat Exchangers - Munters Unit 24-44300-01 1 25,000 Comm Ctr Operations 25,000 Replacement of the heat exchangers in the Munters unit that heats the ice arena. Repaint Field House Ceiling 24-44400-01 1 50,000 Comm Ctr Operations 50,000 Peel/scrape paint from fieldhouse ductwork. Replacement- Carpet Track Level 25-44300-01 1 12,000 Comm Ctr Operations l Z 000 Replacement of carpet on the track level in the Sports Complex Replacement - Generator 26-44000-01 1 Comm Ctr Operations Generator provides emergency back up power to some of the vital systems within the facility. Total 15,000 15,000 36,000 36,000 400,000 400,000 25,000 25,000 50,000 50,000 12, 000 11,000 40,000 40,000 40,000 40,000 Community Center Total 80,000 1,454,000 475,000 12,000 40,000 2,061,000 Emergencv Management Replacement - Emergency Sirens 22-42400-01 1 50,000 25,000 75,000 Capital Equipment Reserve 50,000 25,000 75,000 Replace 3 older emergency sirens, two per year. Emergency Operations Center Improvement 22-42400-02 1 15,000 15,000 Capital Equipment Reserve 15,000 15,000 Construct a functional Emergency Operational Center (EOC) by improving workable space at Fire Station #1. The improvements include light station modifications, technology improvements, lockable cabinets/storage, and hand-held and stationary radios. Emergency Management Total 65,000 25,000 90,000 Engineering New Development Projects 22-41600-01 1 Sewer Trunk Fund Water Trunk Fund 185,000 190,000 200,000 210,000 220,000 1,005,000 125,000 130,000 135,000 140,000 145,000 675,000 60,000 60,000 65,000 70,000 75,000 330,000 188 Department Project # Priority 2022 2023 2024 2025 2026 Total 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 Maintenance 22-41600-02 1 60,000 62,000 64,000 67,000 70,000 323,000 Road & Bridge Funds 60,000 62,000 64,000 67,000 70,000 323,000 This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system. Pedestrian/Park Trail Reconstruction 22-41600-03 1 500,000 500,000 General Fund 500,000 500,000 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. 2025- Kelsey Round Lake Park Trail ($500,000) New Pedestrian Trail and Sidewalk Segments 22-41600-04 1 800,000 231,000 705,000 312,500 2,048,500 Trail Funds 800,000 231,000 705,000 312,500 2,049,500 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: 2023: 8' Bit. Trail along Crosstown Blvd - Xeon Street to Rail Road Tracks ($190,000) 8' Bit. Trail along Crosstown Blvd - Rail Road Tracks to 157th Ave ($340,000) 8' Bit. Trail along Crosstown Blvd -157th Ave to 159th Ave ($270,000) 2024: 8' Bit Trail along Station Parkway from Thrush Street to Partridge Circle (west leg) ($55,000) 8" Bit Trail along Station Parkway from Partrdge Street (east leg) to Hanson Blvd ($176,000) 2025: 8' Bit. Trail and Boardwalk along Verdin Street -161st Ave to 163rd Lane ($705,000) 2026: 8' Bit Trail and Bridge along Coon Creek going east to the existing trail in the Shadowbrook development ($312,500) Replacement- Pick Up Truck #6 22-41600-06 2 50,000 Equipment Bond 50,000 Replace unit #6, a 1996 Dodge pick up truck with 107,500 miles. Replacement - Total Station Survey Equipment 24-41600-01 1 30,000 Capital Equipment Reserve 30,000 Total Station Survey Equipment is used for site surveys and construction surveying for street and park projects. Replacement - Chevy Tahoe #16 26-41600-07 1 Capital Equipment Reserve Replace unit #16, a 2002 Chevy Tahoe with 127,600 miles to be replaced with a pick up truck. Engineering Total (Facility Management Annual Parking Lot Maintenance/Replacement 22-41900-01 Facility Maintenance Reserve 295,000 1,052,000 275,000 170,000 275,000 170,000 525,000 1,482,000 50,000 60,000 50,000 60,000 50,000 50,000 30,000 30,000 60,000 60,000 60,000 60,000 662,500 4,016,500 70,000 625,000 70,000 625,000 189 Department Project # Priority 2022 2023 2024 2025 2026 Total 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: 2022 City Hall parking lot reconstruction and drive lane to the City Hall garage. 2023 Fire Station 2 parking lot. Replacement - Roof Top Package Unit PW 22-41900-02 2 45,000 45,000 Facility Maintenance Reserve 45,000 45,000 Replace the Trane roof top package unit that supplies the office area at Public Works. Replacement - Furnace CH 22-41900-03 1 8,000 8,000 Facility Maintenance Reserve 8,000 8,000 Carrier furnace which is located in the Riser room. This furnace supplies heat to the East restrooms. Replacement - Emergency Generator FS #1 23-41900-01 1 50,000 50,000 Facility Maintenance Reserve 50,000 50,000 Replace the emergency generator at Fire Station #1. Replacement - Make Up Air Unit /Exhaust Fan PW 23-41900-04 1 125,000 125,000 Facility Maintenance Reserve 125,000 125,000 Replace the make up air unit/exhaust fan in the park's area at Public Works. Replacement- Tube Heaters FS #1 23-41900-05 1 25,000 25,000 Facility Maintenance Reserve 25,000 25,000 Replace the tube heaters in the truck bay at Fire Station #1. Replacement- Roof Top Package Units 1 - 8 CH 23-41900-06 1 112,000 112,000 Facility Maintenance Reserve 112,000 112,000 Replacement of carrier roof top package units 1 - 8. Replacement- Furnace FS3 23-41900-07 1 10,000 10,000 Facility Maintenance Reserve 10,000 10,000 Replace a furnace at Fire Station #3 which heats all living areas. Replacement- Carpet / Tile 24-41900-01 1 30,000 30,000 Facility Maintenance Reserve 30,000 30,000 The replacement of carpet and tile in appropriate areas of all City buildings where deemed necessary. An annual review of all areas will be done to determine the order of replacement. Replacement - Emergency Generator FS #2 24-41900-02 1 35,000 35,000 Facility Maintenance Reserve 35,000 35,000 Replace the emergency generator and transfer switch at Fire Station #2. Replacement - Fire Sprinkler System FS #1 24-41900-03 1 50,000 50,000 Facility Maintenance Reserve 50,000 50,000 Replace sprinkler system at Fire station #1. Replacement- Fire Sprinkler System PW 24-41900-04 1 50,000 50,000 Facility Maintenance Reserve 50,000 50,000 190 Department Project # Priority 2022 Replace the fire sprinkler system at Public Works. Replacement- Roof Top Package Units 9 -16 CH 24-41900-05 1 Facility Maintenance Reserve Replace Carrier roof top package units 9 -16. Replacement - Emergency Generator FS #3 25-41900-01 1 Facility Maintenance Reserve Replace the emergency generator at fire station #3. Replacement - Fire Sprinkler System CH 25-41900-03 1 Facility Maintenance Reserve Replace fire sprinkler system at City Hall. Replacement - Mini Split Unit QCTV 25-41900-04 1 Capital Equipment Reserve Replace mini split unit that cools QCTV control room. Facility Management Total 328,000 Finance Financial / Payroll System Upgrade 25-41400-01 1 Capital Equipment Reserve Upgrade the current financial/payroll software program to the latest version by moving to the cloud. Finance Total Fire 2023 2024 2025 2026 Total 112,000 112,000 112,000 112,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 6,500 6,500 6,500 6,500 492,000 327,000 166,500 70,000 1,383,500 15,000 15,000 15,000 15, 000 15,000 15,000 New - First Response Vehicle 22-42200-01 1 70,000 70,000 Equipment Bond 70,000 70,000 Purchase a large SUV as a first response vehicle. The current vehicle will be repurposed in the Fire Department. New- Digital Fire Extinguisher Training System 22-42200-02 1 12,000 12,000 Grant 12,000 12,000 Training system that allows for a safe and effective way to use a fire extinguisher. Replacement- 800 MHz Radios 22-42200-03 1 50,000 50,000 50,000 50,000 200,000 Capital Equipment Reserve 50,000 50,000 50,000 50,000 200,000 The current 800 MHz handheld and mobile radios used by the Fire Department and Public Works are no longer manufactured. In addition, the service support for maintenance and repairs is no longer available. The Fire Department has 37 handheld radios and 16 mobile radios mounted in vehicles or used as base -stations at the fire stations. Public Works has 6 handheld radios that can be used to contact public safety agencies on the 800 MHz frequency. Replacement - Grass / Rescue Vehicle 22-42200-05 1 275,000 275,000 Grant 275,000 275,000 Replace unit #31, a 1991 Ford F350 4 x 4 grass vehicle with 23,745 miles. New- Mobile CAD 22-42200-06 1 12,000 12,000 Capital Equipment Reserve 12,000 12,000 in Department Project # Priority 2022 2023 2024 2025 2026 Total Computer Aided Dispatch (CAD) Terminals will be mounted in each engine, rescue, the ladder, and command vehicles. New - First Response Vehicle 23-42200-01 1 75,000 75,000 Capital Equipment Reserve 75,000 75,000 Purchase a large SUV as a first response vehicle. This would repurpose unit 4828 and the Fire Chief would be getting a new vehicle. Replacement- UT-10 #4810 23-42200-02 1 65,000 65,000 Capital Equipment Reserve 65,000 65,000 Replace UT-10, a 2003 S-10 extended cab pick-up truck with 55,760 miles on it. New - Forcible Entry Prop 23-42200-03 1 8,000 8,000 Capital Equipment Reserve 8,000 8,000 This prop will allow firefighters to have a reusable and realistic tool to practice the various ways to gain access via secured doors to initiate fire suppression and life-saving activities. Replacement- Rescue 31 #4818 24-42200-01 1 125,000 125,000 Capital Equipment Reserve 125,000 125,000 Replace unit #4818, a 2006 Chevrolet 3500 four door truck with 18,664 miles. Replacement - Engine 31 #4800 24-42200-03 1 700,000 700,000 Equipment Bond 700,000 700,000 Replace unit #4800, a 2000 Pierce Quantum Engine with 23,818 miles. This truck carries 750 gallon of water and has a 1,200GPM pump. Replacement- SCBA Equipment 26-42000-04 1 425,000 425,000 Capital Equipment Reserve 425,000 425,000 Replace current SCBA equipment. Replacement- Ford Interceptor #4827 26-42200-01 1 50,000 50,000 Capital Equipment Reserve 50,000 50,000 Replace unit #4827, a 2015 Ford Interceptor SUV with 18,400 miles. Replacement- Grass Utility Vehicle (UTV) #4813 26-42200-02 1 45,000 45,000 Capital Equipment Reserve 45,000 45,000 Replace unit #4813, a Polaris 6 x 6 with 135 miles that is used for wildland fires. Replacement- Engine 11 #4821 26-42200-03 1 725,000 725,000 Equipment Bond 725,000 725,000 Replace unit #4821, a 2010 Pierce Velocity Pumper with 41,093 miles. This truck carries 750 gallons of water and has a 1,200GPM pump Fire Total 419,000 198,000 875,000 50,000 1,245,000 2,787,000 Information Technolo Replacement - Data SAN (Storage Area Network) 23-41420-01 2 30,000 30,000 Capital Equipment Reserve 30,000 30,000 Replace existing EMC VNXe3200 SAN with new HPE Nimble SAN. Message Board Upgrade (Bunker) 24-41420-01 1 40,000 40,000 Economic Development Authority 40,000 40,000 Upgrade existing message board located at corner of Bunker Lake Blvd & Crosstown Blvd. 192 Department Information Technology Total Project # Priority 2022 2023 30,000 2024 2025 2026 40,000 Total 70,000 Park & Rec - Operations Replace/Repair Play Structures - Various Parks 22-45000-01 1 100,000 100,000 150,000 150,000 150,000 650,000 General Fund 100,000 100,000 150,000 150,000 150,000 650,000 The parks listed are in need of replacing the existing playground equipment and in some cases improving the fall zones to meet ADA accessibility requirements. History has shown that the life expectancy of these play structures has been around 15 years then replacement is needed due to the structure condition. The proposed playground equipment improvements/rebuilds are as follows: 2022 - Prairie Knoll Park & Rose Park 2023 - Hills of Bunker Lake West Park & Hidden Creek East Park 2024 - Woodland Estates Park, Oakview Park & Shady Knoll Park 2025 - Meadows of Round Lake Park, Creekview Crossing Park & Oak Bluff Crossing Park 2026 - Country Oaks Park, Fox Meadows Park & Hidden Creek South Park Replace/Repair Major Park Projects - Various Parks 22-45000-02 1 35,000 35,000 35,000 35,000 35,000 175,000 General Fund 35,000 35,000 35,000 35,000 35,000 175,000 Future Projects: Fence rebuilds at various parks, shelter replacements, parking lot and interior park trail reconstuction Replacement- Cushman #546 22-45000-03 1 13,000 13,000 Capital Equipment Reserve 13,000 13,000 Replace Unit #546, a 1994 Cushman fielddresser with 5,923 hours with a Toro Sand Pro 2040 Z. Replacement - Tractor #515 22-45000-04 1 50,000 50,000 Capital Equipment Reserve 25,000 25,000 Water Fund 25,000 25,000 Replace unit #515, a 2002 John Deere tractor with 5,124 hours.. New Zero -Turn Mower 22-45000-05 1 10,000 10,000 Equipment Bond 10,000 10,000 Add an additional Zero -Turn Mower. Replacement- Large Capacity Mower#585 22-45000-06 1 130,000 130,000 Equipment Bond 130,000 130,000 Replace unit #585, a 2001 Toro Groundmaster 580-D with 2,585 hours. Replacement - Toro Groundsmaster #561 24-45000-01 1 60,000 60,000 Capital Equipment Reserve 60,000 60,000 Replace unit #561, a 2004 Toro Groundsmaster 328-D 4WD with 2,136 hours. Replacement - One Ton Truck w/ Plow #569 24-45000-02 1 80,000 80,000 Equipment Bond 80,000 80,000 Replace unit #569, a 2005 Ford F450 4x4 w/ plow with 104,600 miles. Replacement- One Ton Irrigation Truck 24-45000-03 1 60,000 60,000 Equipment Bond 60,000 60,000 Replace unit #97-578, a 1997 GMC 1-ton Irrigation truck with 67,000 miles. New - Trail Machine 24-45000-05 1 150,000 150,000 193 Department Project # Priority 2022 2023 2024 2025 2026 Total Equipment Bond 150,000 150,000 Purchase an additional trail machine for the expanding trail system. Replacement- Sunshine Park Parking Lot 24-45000-06 1 290,000 290,000 General Fund 290,000 290,000 Reclaim and pave the north parking lot and replace miscellaneous concrete curb sections at Sunshine Park. Replacement - Toro Groundsmaster#564 25-45000-01 1 80,000 80,000 Equipment Bond 80,000 80,000 Replace unit #564, a 2007 Toro Groundsmaster 328-D 4WD with 1,172 hours. Replacement - Toro Groundsmaster#550 25-45000-03 1 80,000 80,000 Equipment Bond 80,000 80,000 Replace unit #550, a 1998 Toro Groundsmaster 72" mower with 1,089 hours. Replacement - One Ton Truck w/ Plow #577 25-45000-04 1 85,000 85,000 Equipment Bond 85,000 85,000 Replace unit #577, a 2007 Ford F450 4x4 w/ plow with 66,110 miles. Park & Rec - Operations Total 338,000 135,000 825,000 430,000 185,000 1,913,000 Park & Rec - Projects Annual Miscellaneous Park Projects 22-45001-01 1 25,000 25,000 25,000 25,000 25,000 125,000 Park Dedication Funds 25,000 25,000 25,000 25,000 25,000 125,000 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. Pine Hills North - Phase II Parking Lot Improve 22-45001-02 1 400,000 400,000 Capital Equipment Reserve 280,000 280,000 Park Dedication Funds 120,000 120,000 2022 includes the paving of existing and/or newly created parking lots. The land was purchased in 2012. The fields were graded, irrigated and seeded in 2013. There will be other improvements down the road including concession/storage buildings, large playground structure, etc. Other project improvements will be completed as funds become available. Dog Park Parking Lot and Trail Paving 22-45001-03 2 37,500 37,500 Capital Equipment Reserve 37,500 37,500 The City of Andover has a joint dog park located in Coon Rapids on Anoka County Parks property. Anoka County Park, Coon Rapids and the City of Andover contribute to improvements and maintenance of the facilty. Improvement request has been made by Anoka County Parks and the City of Coon Rapids to pave the existing parking lot and construct an handicap accessible trail in the park. Pine Hills South Parking Lot Paving 22-45001-04 2 67,000 67,000 Park Dedication Funds 67,000 67,000 Pave the existing parking lot. Oak Bluff Park New Basketball Court 22-45001-05 2 10,000 10,000 194 Department Project # Priority 2022 2023 2024 2025 2026 Total Park Dedication Funds 10,000 Install new half basketball court at the park. Prairie Knoll Park Warming House Expansion 23-45001-01 1 100,000 Park Dedication Funds 100,000 Expand the existing warming house at the building. Hidden Creek North Park Medium Shelter 23-45001-02 2 40,000 Park Dedication Funds 40,000 Install a new medium sized shelter. Lunds North Park New Playground Equipment 23-45001-03 2 50,000 Park Dedication Funds 50,000 Install new playground equipment. Dalske Preserve Boardwalk 26-45001-01 1 Grant A boardwalk is required on the Dalske Preserve property to provide access across Ditch 21 to the south side of the open space property. Park & Rec - Projects Total Sanitary Sewer 10,000 100,000 100,000 40,000 40,000 50,000 50,000 110,000 110,000 110,000 110,000 539,500 215,000 25,000 25,000 135,000 939,500 Replacement - One Ton Truck wl Plow #78 22-48200-01 1 85,000 85,000 Sanitary Sewer Fund 41,500 41,500 Storm Sewer Fund 42,500 42,500 Replace unit #78, a 2005 Ford F450 dump truck and snow plow with 107,300 miles. Lift Station #1 Valve Manhole 23-48200-01 1 75,000 75,000 Sanitary Sewer Fund 75,000 75,000 This is a manhole where the mainline shut off valves and check valves are placed for easy access and maintenance. Rural Reserve Trunk Sanitary Sewer 24-48200-01 1 3,500,000 3,500,000 Assessments 1,250,000 1,250,000 Sewer Revenue Bonds 2,250,000 2,250,000 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. Sanitary Sewer Total 85,000 75,000 3,500,000 3,660,000 Storm Sewer Storm Sewer Improvements 22-48300-01 1 68,000 70,000 70,000 73,000 74,000 355,000 Storm Sewer Fund 68,000 70,000 70,000 73,000 74,000 355,000 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#169 24-48300-01 1 250,000 250,000 Storm Sewer Fund 250,000 250,000 195 Department Project # Priority 2022 2023 2024 2025 2026 Total Replace unit #169, a 2000 Elgin sweeper with approximately 5,388 hours. Storm Sewer Total 68,000 70,000 320,000 73,000 74,000 605,000 Streets - Equipment New - Dump Truck w/ Snow removal equipment 22-43100-01 1 250,000 250,000 Equipment Bond 250,000 250,000 Purchase an additional dump truck with snow removal equipment making an older plow truck a back-up in case of breakdowns during a snow emergency. Replacement- Asphalt Roller#114 22-43100-02 1 20,000 20,000 Equipment Bond 20,000 20,000 Replace unit #114, a asphalt roller with 1990 hours. Replacement - Dump Truck w/ Snow removal #198 22-43100-03 1 255,000 255,000 Equipment Bond 255,000 255,000 Replace unit #198, a 2000 Sterling dump truck with snow removal equipment with 59,120 miles. Replacement - Bobcat S185 #120 23-43100-01 1 60,000 60,000 Capital Equipment Reserve 60,000 60,000 Replace unit #120, a 2004 Bobcat S185 with 2,120 hours. New- Dump truck w/ Snow removal equipment 24-43100-01 1 255,000 255,000 Equipment Bond 255,000 255,000 Add a new dump truck with snow removal equipment making an older plow truck a dedicated haul truck for the Utility Department. Replacement- One Ton Truck w/ Plow #134 24-43100-03 1 85,000 85,000 Equipment Bond 85,000 85,000 Replace unit #134, a 2004 F450 dump truck and snow plow with 94,150 miles. Replacement - Dump Truck w/ Snow removal #200 24-43100-04 1 260,000 260,000 Equipment Bond 260,000 260,000 Replace unit #200, a 2002 Sterling dump truck with snow removal equipment with 79,350 miles. Replacement - Aerial bucket truck #00-139 25-43100-02 1 200,000 200,000 Capital Equipment Reserve 200,000 200,000 Replace unit #00-139, a 2001 Ford F550 aerial bucket truck with 26,110 miles. Replacement - Dump Truck w/ Snow removal #201 26-43100-01 1 270,000 270,000 Equipment Bond 270,000 270,000 Replacement unit #201, a 2000 Sterling dump truck with snow removal equipment with 55,130 miles. Streets - Equipment Total 525,000 60,000 600,000 200,000 270,000 1,655,000 Streets - Roadways Annual Street Crack Seal Project 22-49300-01 1 190,000 200,000 210,000 220,000 230,000 1,050,000 Construction Seal Coat Fund 10,000 10,000 10,000 10,000 10,000 50,000 Road & Bridge Funds 180,000 190,000 200,000 210,000 220,000 1,000,000 196 Department Project # Priority 2022 2023 2024 2025 2026 Total 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 Markings 22-49300-02 1 60,000 62,000 64,000 66,000 69,000 321,000 Road & Bridge Funds 60,000 62,000 64,000 66,000 69,000 321,000 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. Curb, Sidewalk and Pedestrian Ramp Replacement 22-49300-03 1 105,000 110,000 115,000 120,000 125,000 575,000 Road & Bridge Funds 105,000 110,000 115,000 120,000 125,000 575,000 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. Municipal State Aid Routes / New & Reconstruct 22-49300-04 1 1,600,000 670,000 335,000 2,605,000 Assessments 144,000 138,000 56,000 338,000 Municipal State Aid Funds 1,456,000 532,000 279,000 2,267,000 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards. 2022: Tulip Street / 161st Avenue Recon Round Lake Blvd to CR 20 & North portion of Tulip Street south of Valley Drive ($1,600,000) 2024: Crooked Lake Blvd Recon from Bunker Lake Blvd to 133rd Avenue ($670,000) 2026: Thrush Street Recon from Bunker Lake Blvd to Crosstown Blvd ($335,000) Annual Street Reconstruction 22-49300-05 1 3,400,000 730,000 2,300,000 1,700,000 3,000,000 117130,000 Assessments 850,000 180,000 580,000 430,000 750,000 2,790,000 G.O. Bond 2,550,000 550,000 3,100,000 Road & Bridge Funds 1,720,000 1,270,000 2,250,000 5,240,000 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 2022 - Timber River Estates & Rolling Meadows Estates 2023- Oak Bluff 2024- Dehns 1st & 2nd Addition, 7th Ave Frontage Road, Andover West, Lunds Round Lake Estates, Indian Meadows 2nd Addition 2025 - Xenia Street / Vintage Street / 161 st Avenue 2026 TBD Gravel Road Improvements 22-49300-07 1 19,000 20,000 21,000 22,000 23,000 105,000 Road & Bridge Funds 19,000 20,000 21,000 22,000 23,000 105,000 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. Street Mill & Overlay 22-49300-08 1 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 Assessments 400,000 400,000 400,000 400,000 400,000 2,000,000 G.O. Bond 1,600,000 1,600,000 3,200,000 197 Department Project # Priority 2022 2023 2024 2025 2026 Total Road & Bridge Funds 1,600,000 1,600,000 1,600,000 4,800,000 The City of Andover has a street mill and overlay program to prolong the life of the City's roadway infrastructure. This program will include milling an 1.5" off the existing pavement and overlaying approximately 1.5" of bituminous on roadways that are indentified as still structurally sound, or have issues with wear course striping where this process 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. 2022- Chesterton Commons, Cambridge Estates, Sophies Manor, Wooldand Oaks & Red Pine Fields developments 2023-2026 To be determined based on road condition. Municipal State Aid Routes/Mill & Overlay 22-49300-09 1 170,000 260,000 312,000 185,000 285,000 1,212,000 Assessments 37,500 9,000 61,500 30,000 45,000 183,000 Municipal State Aid Funds 132,500 251,000 250,500 155,000 240,000 1,029,000 The City of Andover has a street mill and overlay program to prolong the life of the City's roadway infrastructure. The improvements include milling an 1.5" off the existing pavement and overlaying approximately 1.5" of bituminous on roadways that are indentified as still structurally sound, or have issues with wear course striping where this process would significantly extend the roadways life cycle. The Engineering Department and Public Works have identified the MSA roads that meet the criteria which are listed below: 2022 - Bluebird Street from Crosstown Blvd to Hanson Blvd ($70,000) 2022 - Andover Blvd from Hummingbird Street to Crosstown Blvd ($100,00) 2023 - Prairie Road from Andover Blvd to Bunker Lake Blvd ($260,000) 2024 - Bunker Lake Blvd Service Road from Heather Street to Rose Street ($100,000) 2024 - Wintergreen Street from 161 st Avenue to north plat line of Coutry Oaks development ($112,000) 2024 - Bunker Lake Blvd Service Road/Grouse Street from Jay Street to Station Parkway ($100,000) 2025 - 157th Avenue from Prairie Road to University Avenue ($185,000) 2026 - Ward Lake Drive from Crosstown Blvd to Hanson Blvd ($285,000) Bunker Lake Boulevard Concrete Median 22-49300-10 1 150,000 150,000 Economic Development Authority 150,000 150,000 Remove the plantings and irrigation in the medain on Bunker Lake Boulevard between Martin Street and Crosstown Boulevard and finish with 4 inches of concrete. Intersection Upgrades 24-49300-01 1 400,000 3,600,000 41000,000 County Reimbursement 200,000 200,000 Grant 1,90Z600 1,90Z600 Municipal State Aid Funds 400,000 1,497,400 1,897,400 The following are projects that are tentatively identified for improvements. Exact timing is subject to change. 2024 - Design for Roundabouts at Nightingale Street / Crosstown Blvd Intersection, Crosstown Blvd / Crosstown Drive and Nightingale Street / Veterans Memorial Blvd. ($400,000) 2025 - Construction of projects listed above.($3,600,000) Streets - Roadways Total 7,694,000 3,382,000 6,092,000 7,913,000 6,067,000 31,148,000 Water Recondition & Paint Water Tower #2 22-48100-01 1 1,655,000 1,655,000 Water Trunk Fund 1,655,000 1,655,000 Recondition and paint Water Tower #2 to preserve the water system storage infrastructure. 198 Department Project # Priority 2022 2023 2024 2025 2026 Total Rehabilitation of Wells 22-48100-02 1 55,000 60,000 115,000 Water Fund 55,000 60,000 115,000 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. Residential Meter Replacement 22-48100-03 1 100,000 100,000 100,000 100,000 100,000 500,000 Water Fund 100,000 100,000 100,000 100,000 100,000 500,000 This project will coinside with the new AMI system. These meters are 20 years old or older. The old technology meters will be replaced with Smart iPerl meters currently being used in the system. $100,000 worth of meters will be replaced on an annual basis which equates to approximately 740 meters. Water Main Gate Valve Rehabilitation 22-48100-04 1 200,000 200,000 200,000 200,000 200,000 1,000,000 Water Trunk Fund 200,000 200,000 200,000 200,000 200,000 1,000,000 The City has found failing nuts and bolts on a certain type of gate valve that was installed before 2004. Not all types of valves have had failures. The City evaluates each development area for the nut and bolt condition prior to a full street reconstruction or mill and overlay. WTP Valve Actuator Replacement 22-48100-05 1 52,000 52,000 Water Fund 52,000 52,000 Replace the 8 - 24" DeZurik Effluent Valve Actuators with K-Tork Actuators. WTP Valve Actuator Replacement 23-48100-01 1 56,000 56,000 Water Fund 56,000 56,000 Replacement of 6 - 24" Backwash Valve Actuators. Bunker Lake Blvd Control Valve Upgrade 23-48100-02 1 20,000 20,000 Water Trunk Fund 20,000 20,000 Replacement of the water valve that sends water to the west side of the city. Water Main Improvements 23-48100-03 1 2,300,000 21300,000 Water Trunk Fund 2,300,000 2,300,000 Install water main, hydrants, and service lines to provide water service to existing and new development areas in the City that are not currently served with City water. The following projects are proposed to be constructed as identified in the City's Comprehensive Water Plan: 2023: Water Main Loop from Crosstown Blvd at RR Tracks to Miller's Woods Development ($500,000). 2023: Water Main Loop along Andover Boulevard from Vale Street to Prairie Road north to Crosstown Boulevard (1,800,000) WTP Valve Actuator Replacement 24-48100-01 1 25,000 25,000 Water Fund 25,000 25,000 Replacement of 4 - 18" Influent Valve Actuators. Plate Settler Plate Replacement 24-48100-02 1 115,000 115,000 Water Fund 115,000 115,000 Replace the fiberglass plates in the plate settler with stainless steel plates. WTP Valve Actuator Replacement 25-48100-01 2 24,000 24,000 Water Fund 24,000 24,000 Replace 8 - 10" Airwash Valve Actuators. Water Total 2,007,000 2,731,000 440,000 384,000 300,000 5,862,000 199 Department GRAND TOTAL Project # Priority 2022 2023 2024 2025 2026 Total 12,443,500 9,964,000 14,044,000 10,750,500 9,048,500 56,250,500 200 CITY OF ANDOVER Summary of Outstanding Bond Issues 2021 - 2022 Outstanding Outstanding Outstanding Date of Rate of at 2021 at 2022 at Description Issue Maturity Interest Issued 12/31/2020 Retired Issued 12/31/2021 Retired Issued 12/31/2022 Governmental Activities General Obligation Abatement Bonds 2012C G.O. Abatement Bonds 12/27/2012 2/1/2031 1.00-3.00% 17,315,000 11,475,000 (925,000) 10,550,000 (945,000) 9,605,00D 2019A G.O. Abatement Bonds 8/1/2019 2/1/2040 3.00 - 5.00% 15,770,000 15,770,000 (235,000) 15,535,000 (545,000) 14,990,DOO 27,245,000 (1,160,000) 26,085,000 (1,490,000) 24,595,DOO Certificates of Indebtedness/Capital Notes 2016A G.O. Equipment Certificates 2/19/2016 2/1/2021 1.90% 520,000 134,000 (134,000) - - 202DA G.O. Equipment Certificates 3/19/2020 2/1/2024 4.00% 1,310,000 1,310,000 (315,000) 995,000 (320,000) 675,D00 2021A G.O. Equipment Bonds 12/28/2021 2/1/2026 2.00% 630,000 - 630,000 630,000 630,000 Subtotal- Certificates of Indebtedness 1,444,000 (449,000) 630,000 1,625,000 (320,000) 1,305,000 Capital Improvement Bonds 2018A G.O. Capital Improvement Plan Bonds 12/27/2018 2/1/2044 3.00-5.00% M000,000 9,915,000 (125,000) 9,790,000 (130,000) 9,660,000 Subtotal - Capital Improvement Bonds 10,000,000 (125,000) 9,790,000 (130,000) 9,66D,DOO Street Reconstruction Bonds 2021A G.O. Street Reconstruction Bonds 12/28/2021 2/1/2030 1.00-2.00% 7,135,000 - 7,135,000 7,135,000 7,135,DOD Referendum Bonds 201DA G.O. Open Space Referendum Bonds 2/18/2010 2/1/2022 2.00-3.125% 1,660,000 335,000 (165,000) 170,000 (170,000) TOTALS $ 39,024,000 $ (1,899,000) $ 7,765,000 $ 44,805,000 $ (2,110,000) $ $ 42,695,000 Business -Type Activities General Obligation Revenue Bonds 2009A G.O. Water Revenue Bonds 3/26/2009 2/1/2024 2.00-4.25% 1,025,000 320,000 (75,000) 245,000 (80,000) 165,000 2016B G.O. Water Revenue Refunding Bonds 12/7/2016 2/1/2023 2.00% 3,925,000 2,025,000 (660,000) 1,365,000 (675,000) 690,000 Subtotal - General Obligation Bonds TOTALS $ 2,345,000 $ (735,000) $ - $ 1,610,000 $ (755,000) $ $ 855,000 TOTALS $ 41,369,000 $ (2,634,000) $ 7,765,000 $ 46,415,000 $ (2,865,000) $ $ 43,550,000 201 CITY OF ANDOVER Debt Service Summary 2022 2023 2024 2025 2026 2027-2031 2032-2036 2037-2041 Governmental Activities General Obligation Abatement Bonds Total 2042-2044 Payments Less Interest Total 2012C G.O. Abatement Bonds 1,213,931.26 1,209,281.26 1,213,000.01 1,209,356.26 1,208,275.01 6,054,471.89 - - - 12,108,315.69 (1,558,315.69) 10,550,000.00 2019A G.O. Abatement Bonds 1,109,775.00 1,106,900.00 1,107,650.00 1,106,900.00 1,104,650.00 5,521,800.00 5,534,700.00 4,419,625.00 21,012,000.00 (5,477,000.00) 15,535,000.00 2,323,706.26 2,316,181.26 2,320,650.01 2,316,256.26 2,312,925.01 11,576,271.89 5,534,700.00 4,419,625.00 33,120,315.69 (7,035,315.69) 26,085,000.00 Certificates of Indebtedness 2020A G.O. Equipment Certificates 353,400.00 350,400.00 351,900.00 1,055,700.00 (60,700.00) 995,000.00 2021A G.O. Equipment Bonds 7,455.00 161,100.00 163,050.00 164,900.00 166,650.00 663,155.00 (33,155.00) 630,000.00 360,855.00 511,500.00 514,950.00 164,900.00 166,650.00 1,718,855.00 (93,855.00) 1,625,000.00 Capital Improvement Bonds 2018A G.O. Capital Improvement Plan Bonds 474,506.26 624,006.26 619,256.26 618,881.26 622,631.26 3,116,631.30 3,110,481.30 3,103,490.65 1,859,062.50 14,148,947.05 (4,358,947.05) 9,790,000.00 Street Reconstruction Bonds 2021A G.O. Street Reconstruction Bonds 69,556.33 934,310.00 947,510.00 945,260.00 942,710.00 3,787,980.00 7,627,326.33 (492,326.33) 7,135,000.00 Referendum Bonds 2010A G.O. Open Space Referendum Bonds 172,656.25 172,656.25 (2,656.25) 170,000.00 3,401,280.10 4,385,997.52 4,402,366.27 4,045,297.52 4,044,916.27 18,480,883.19 8,645,181.30 7,523,115.65 1,859,062.50 56,788,100.32 (11,983,100.32) 44,805,000.00 Business -Type Activities General Obligation Revenue Bonds 2009A G.O. Water Revenue Bonds 88,492.50 85,252.50 86,806.25 - - - - - - 260,551.25 (15,551.25) 245,000.00 2016B G.O. Water Revenue Refunding Bonds 695,550.00 696,900.00 1,392,450.00 (27,450.00) 1,365,000.00 784,042.50 782,152.50 86,806.25 1,653,001.25 (43,001.25) 1,610,000.00 4,185,322.60 5,168,150.02 4,489,172.52 4,045,297.52 4,044,916.27 18,480,883.19 8,645,181.30 7,523,115.65 1,859,062.50 58,441,101.57 m 026,101.57) 46,415,000.00 202 CITY OF ANDOVER Computation of Legal Debt Margin December 31, 2021 (Unaudited) Estimated Taxable Market Value (Note A) Debt Limit: 3% of Market Value Total Bonded Debt Less: Non -Tax Levy Supported Debt: (Note B) G.O. Revenue Bonds Total Debt Applicable Less: Balance Available in Related Debt Service Funds Net Debt Applicable Legal Debt Margin Note A: Source: Anoka County Property Tax Division $ 46,415,000 1,610,000 44,805,000 2.521.564 Note B: The computation on legal debt margin only includes debt supported by a tax levy. $ 3,615,408,106 108,462,243 42,283,436 $ 66,178,807 203 CITY OF ANDOVER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Collected Within the Fiscal Year of Levy Total Market Value Collections In Total Collections to Date Tax Tax Homestead Total Percentage Subsequent Percentage Year Levy* Levy Credit Collected of Levy Years Amount of Levy 2011 $ 10,856,299 $ 10,119,681 $ 853 * $ 10,120,534 93.22% $ 145,144 $ 10,265,678 94.56% 2012 10,631,299 10,460,838 2,354 10,463,192 98.42% 128,881 10,592,073 99.63% 2013 10,631,299 10,535,521 1,246 10,536,767 99.11% 103,294 10,640,061 100.08% 2014 10,843,925 10,776,635 - 10,776,635 99.38% 76,778 10,853,413 100.09% 2015 11,143,925 11,054,157 - 11,054,157 99.19% 56,677 11,110,834 99.70% 2016 11,593,925 11,525,770 3,461 11,529,231 99.44% 22,347 11,551,578 99.63% 2017 11,938,555 11,858,376 3,545 11,861,921 99.36% 11,102 11,873,023 99.45% 2018 12,416,357 12,342,648 2,824 12,345,472 99.43% 26,061 12,371,533 99.64% 2019 13,103,487 12,974,413 3,960 12,978,373 99.05% 52,338 13,030,711 99.44% 2020 14,479,586 14,391,252 4,128 14,395,380 99.42% r 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) Total Delinquent Collections Assessments Current Current Percent of Delinquent Total as a Percent of Outstanding as a Percent of Assessments Assessments Assessments Assessment Assessment Current Delinquent Current Year Due (1) Collected Collected Collections Collections Assessments Due Assessments Assessments Due 2011 $ 308,794 $ 304,164 98.50% $ 5,112 $ 309,276 100.16% $ 267,016 86.47% 2012 348,129 376,601 108.18% 25,087 401,688 115.38% 237,175 68.13% 2013 338,411 387,584 114.53% 168,941 556,525 164.45% 82,826 24.47% 2014 326,597 387,651 118.69% 3,788 391,439 119.85% 215,970 66.13% 2015 334,054 514,868 154.13% 4,003 518,871 155.33% 269,754 80.75% 2016 267,704 510,275 190.61% 2,153 512,429 191.42% 268,716 100.38% 2017 265,163 513,140 193.52% 212 513,352 193.60% 272,101 102.62% 2018 305,249 555,684 182.04% 412 556,096 182.18% 283,528 92.88% 2019 272,670 532,268 195.21% 1,579 533,847 195.79% 295,781 108.48% 2020 272,526 524,787 192.56% 5,684 530,471 194.65% 272,865 100.12% Note: (1) Only includes assessments certified to Anoka County. 204 CITY OF ANDOVER, MINNESOTA PRINCIPAL TAXPAYERS Current Year and Ten Years Ago (Unaudited) 2020 2011 Net Percentage of Net Percentage of Tax Total City Tax Total City Taxpayers Capacity Rank Tax Capacity Capacity Rank Tax Capacity CenterPoint Energy $ 317,604 1 0.88% $ 201,860 2 0.77% Conncxus Energy 222,898 2 0.62% 217,170 1 0.83% Presbyterian Homes of Andover 209,904 0.58% 151,809 6 0.58% Walmart Real Estate Business Trust 173,938 4 0.48% Target Corporation 161,826 5 0.45% 191,460 3 0.73% Great River Energy 161,208 6 0.45% 153,136 5 0.59% Andover Limited Partnership 143,250 7 0.40% 159,028 4 0.61% Andover Station 2016 LLC 123,650 8 0.35% 104,250 7 0.40% DST Properties LLC 108,864 9 0.30% Estates of Arbor Oaks LLC 90,023 10 0.0025 Fairbanks Properties LLC 79,260 8 0.30% Columbia Park Properties 73,606 9 0.28% Maxwell Kearns, Inc. 68,538 10 0.26% Total $ 1,713,165 4.76% $ 1,400,117 5.35% Net Tax Capacity $ 36,099,539 $ 26,174,350 Source: Anoka County Property Tax Division CITY OF ANDOVER, MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) Estimated Market Values New Construction Commercial / Commercial / Industrial Residential Year Industrial (1) Residential Total Permits Value Permits Value 2011 $ 199,728,200 $ 2,305,897,900 $ 2,505,626,100 24 $ 11,461,453 58 $ 11,803,000 2012 192,112,500 2,206,195,400 2,398,307,900 25 5,042,964 81 15,243,007 2013 174,971,400 2,141,898,900 2,316,870,300 15 9,249,466 98 20,351,892 2014 166,531,500 2,103,536,600 2,270,068,100 14 4,285,281 52 13,926,901 2015 173,717,700 2,435,950,500 2,609,668,200 16 2,513,609 74 19,631,775 2016 181,926,900 2,530,046,700 2,711,973,600 7 14,009,200 111 28,893,036 2017 196,837,900 2,610,055,500 2,806,893,400 - 94 27,847,717 2018 207,569,200 2,908,606,300 3,116,175,500 2 2,860,000 60 19,703,857 2019 214,417,500 3,057,490,800 3,271,908,300 2 3,901,376 116 37,258.817 2020 228,402,926 3,332,915,773 3,561,318,699 - 139 45,464,139 Note: (1) Also includes agricultural, public utility, railroad operating property, and personal property. 205 CITY OF ANDOVER, MINNESOTA DEMOGRAPHICS (Unaudited) Percent U.S. Census of Change 2000 2010 2020 Est (1) 2000 - 2010 Population 26,588 30,598 34,000 15.08% Households 8,205 9,811 11,400 19.57% Household Size (Population/Household) 3.24 3.12 2.98 -3.76% POPULATION DEMOGRAPHICS (2010 U.S. CENSUS) Populaton by Age (2010 U.S. Census): Persons Percent 4 and under 1,737 9.2% 5-9 2,620 10.6% 10 - 14 3,032 10.4% 15 - 19 2,807 7.6% 20 - 24 11410 3.7% 25 - 34 2,887 14.5% 35 - 44 4,922 22.0% 45 - 54 5,932 13.1% 55 - 59 1,803 4.1% 60 - 64 1,393 2.0% 65 - 74 1,409 1.7% 75 - 84 454 0.8% 85 and over 192 0.3% Total population 30,598 100.0% Total female population 15,074 Total male population 15,524 2019 median age 39.9 yrs City of Anoka State of Andover County Minnesota Income Statistics: 2019 per capita income $ 43,035 $ 36,978 $ 37,625 2019 median household income 109,930 82,175 71,306 2019 median family income 117,376 95,429 89,842 2019 median gross rent 1,655 1,118 977 2019 median value owner occupied housing 289,500 232,400 223,900 (1) Source: Metropolitan Council 206 CITY OF ANDOVER, MINNESOTA MISCELLANEOUS STATISTICAL DATA (Unaudited) Date incorporated Form of government Miles of streets City County Storm sewer (miles) Water main (miles) Sanitary sewer (miles) Parks: Number Developed acreage Trails (miles) Acreage: Developed Undeveloped Firm ISD No 11 Anoka -Hennepin Walmart Fairview Andover Clinic Anoka County Sheriffs Office Kottkes' Bus Service YMCA Target TE Connectivity GAF Materials Corp Anoka County Highway Department Largest Employers in the City Tvne of Business / Product Elementary and secondary education Retail Healthcare County government and services Transportation Youth organization and fitness center Retail Automotive engineering Roofing materials - manufacturing County government and services 1974 Plan A 205 43 85 124 103 68 631 41 9,866 12,630 Number of Employees 816 335 300 250 225 220 200 142 125 120 207 LCI • r' • ' ACCOUNTING SYSTEM: The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned (whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). ACTIVITY: A cost center for recording charges for services delivered or functions performed. Each activity has an assigned manager who is responsible for planning and conducting the various approved objectives or workloads. AMORTIZATION: (1) The portion of the cost of a limited -life or tangible asset charged as an expense during a particular period. (2) The reduction of a debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION: An authorization made by the legislative body of a government that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ASSESSED VALUATION: A valuation set upon real estate or other property by a government as a basis for levying taxes. ASSESSMENT: (1) The process of making the official valuation of property for taxation. (2) The valuation placed upon property as a result of this process. ASSETS: Property owned by a government that has a monetary value. BALANCED BUDGET: When revenues and other financing sources equal expenditures/expenses and other financing uses. BOND: A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. 208 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). CARES: Coronavirus Aid, Relief and Economic Security COVID-19: The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2. 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. 209 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). FUND: An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The excess of a fund's assets over its liabilities, generally called a reserve. A negative fund balance is sometimes called a deficit. GENERAL FUND: The fund used to account for all financial resources, except those required to be accounted for in another fund. GENERAL OBLIGATION : 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 : 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 (A): 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. 210 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. 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 (ACA): 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 (L): 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. 211 LOCAL PERFORMANCE AID (L): 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. MARKET VALUE HOMESTEAD CREDIT (MVHC): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxes by providing a credit or reduction on the amount of property taxes. MARKET VALUE HOMESTEAD EXCLUSION (MVHE): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxes by excluding a portion of property value from taxation. MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. MATURITIES: The dates on which the principal or stated value of investments or debt obligations mature and may be reclaimed. OBJECT OF EXPENDITURE: Expenditure classification based upon the types or categories of goods and services purchased. Typical objects of expenditure include: - personal services (salaries and wages); - charges and services (utilities, maintenance contracts, travel); - supplies and materials; and, - capital outlay. OBJECTIVE: Serving as a goal; being the object of a course of action. OPERATING UT: A plan of financial operation embodying an estimate of proposed expenditures for the calendar year and the proposed means of financing them (revenue estimates). OPERATING EXPENSES: Proprietary fund expenses related directly to the fund's primary activities. OPERATING TRANSFER: Routine and/or recurring transfers of assets between funds. ORDINANCE: A formal legislative enactment by the government body of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies. 212 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. PERSONAL VICES: A level of budgetary appropriations, which includes expenses for salaries, wages, and related employee benefits such as the City's share of retirement and insurance. POLICE DEPARTMENT AID: An intergovernmental revenue from the State to be used to maintain the Police Department. A premium tax of two percent is imposed on automobile insurance and apportioned to qualifying cities. POLICY: A set of guidelines used for making decisions. PRE-EMPTIVE DEVICES: Radio frequency controlled traffic light on emergency vehicles. PROGRAM: Group activities, operations or organizational units directed to attaining specific purposes or objectives. PROPRIETARY FUNDS: Account for government's ongoing organizations and activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses and transfers relating to the government's business and quasi - business activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination on net income, financial position and changes in financial position. Includes enterprise and internal service funds. RESERVES: Assets kept back or saved for future use or special purpose. RESIDUAL EQUITY TRANSFER: Non -recurring or non -routine transfers of assets between funds. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of the government's proprietary funds (those funds where service charges will recover costs of providing those services). REVENUE: The term designates an increase to a fund's assets which: - does not increase a liability (e.g., proceeds from a loan); - does not represent a repayment of an expenditure already made; - does not represent a cancellation of certain liabilities; and - does not represent an increase in contributed capital. 213 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. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. SUPPLIES: A level of budgetary appropriations, which includes expenses for commodities that are used such as office supplies, operating supplies, repair and maintenance supplies. TAX CAPACITY: A valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. The assessor determines the estimated market (resale) value of the property. This value is converted to tax capacity by a formula specified in state law. TAX CAPACITYRATE: 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. 214