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HomeMy WebLinkAbout1979 CAFR 1",-, o . I CITY OF ANDOVER, MINNESOTA FINANCIAL STATEMENTS TOGETHER WITH AUDITORS' REPORT DECEMBER 31, 1979 . i J i I I .. <II . r o. CITY OF ANDOVER, MINNESOTA c CONTENTS OFFICIALS AUDITORS' REPORT Page . COMBINED FINANCIAL STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Fund Types 1-2 3-4 GENERAL FUND: Balance Sheet 5 Statement of Revenues, Expenditures and Changes in Fund Balance 6-14 SPECIAL REVENUE FUNDS: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balance 15 16 o DEBT SERVICE FUND: Balance Sheet Statement of Revenues, Expenditures and Fund Balance 17 18 CAPITAL PROJECTS FUNDS: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balance 19 20 SPECIAL ASSESSMENT FUNDS: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balance 21 22-23 GENERAL FIXED ASSETS GROUP: Statement of General Fixed Assets 24 GENERAL LONG-TERM DEBT GROUP: Statement of General Long-Term Debt o NOTES TO FINANCIAL STATEMENTS SUPPLEMENTAL FINANCIAL INFORMATION: Auditor's Opinion on Supplemental Financial Information Combined Schedule of Investments Combined Schedule of Bonds Payable I nsurance in Force and Official Bonds 25 26-30 31 32 33-35 36 o CITY OF ANDOVER, MINNESOTA Mayor - Gerald Windschitl Council - Donald Jacobson Theodore M Lachinski Kenneth Orttel Robert Peach Clerk - Treasurer - Patricia K. Lindquist o c OFFICIALS Term of Office Expires December 31, 1980 December 31, 1982 December 31, 1980 December 31, 1980 December 31, 1982 J '~ OLSEN. THIELEN & 00.. LTD. c 223 L'TTLE CANADA ROAD ST. PAUL. MINNESOTA 55117 (612) 483-4521 Honorable Mayor and City Council City of Andover, Minnesota We have examined the balance sheets of the various funds and account groups of the City of Andover as of December 31, 1979, and the related statements of revenues, expenditures and changes in fund balances for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. . The City has not maintained detailed cost records of its General Fixed Assets and accordingly we express no opinion on them. I n our opinion, except for the above, the financial statements referred to above present fairly the financial position of the City of Andover as of December 31, 1979, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. &tSBrl,-M~ y-{1/4{; February 14, 1980 o <t: I- o (j) w Z Z ~ (j) 0.. :J o ~ I-l? wI- Wz I:Jen (j)o&i WU"- U U ~ Z<t:..- <t: M ....JO~ <t:ZUJ OJ<t:OJ 0(j)2: UJUJUJ Zo..U _>-UJ OJ 1-0 2: 00 UZ :J u. ....J ....J <t: E :~~bl o (]) I (]) L C 0>0 l?<35 ;,fl- +-> ....J C :J_ o rtl Vl UL-o+-> U (]) (]) (]) <t:CXVl (])._ Vl l?u.<t: +-> C - (]) .~ E U <Jl (]) <Jl o..(]) (j) <Jl <Jl <( <Jl (]) ~ - +-> rtl U ::: (]) 0..' rtl 0 ut ~I MLJ')OCOI"- enl"-OM~ CO..-OMLJ') ~ I"- LJ')COLJ') ~ ..- ..- ~ LJ') ~ ..- <.OI"-~I"- LJ')LJ')en..- MLJ')CO<.O ~ ~ ~ enl"- en M..- 1.0 M ~ N <.0 I"- CO LJ')LJ') ..- MLO ~ ~ en I"- M M ..- M ~ N ~<.O en..- CO ..- Vl +-> C :J o NenLJ')..-OO CO <.0 1"-..-<.0<.0 1.0 <.0 0 0 1.0 ..- <.0 1.0 .... .... .... ... .... ... ... 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J' o CITY OF ANDOVER, MINNESOTA GENERAL FUND BALANCE SHEET DECEMBER 31, 1979 ASSETS TOTAL ASSETS $116,366 175 80,000 6,202 3,541 894 47,116 $254.294 Cash Imprest Cash Investments Delinquent Taxes Receivable Accounts Receivable Receivable from Other Governmental Units Receivable from Other Funds LIABILITIES AND FUND BALANCE o LIABI L1TI ES: Accounts Payable Planning and Zoning Escrow Deposits Sewer Availability Charge Escrow Deposits Deferred Payable to Metropolitan Waste Control Commission Payable To Other Funds Total Liabilities $ 75,990 9,500 24,475 46,381 12,413 168,759 FUND BALANCE: Designated For Imprest Cash Undesignated Total Fund Balance 175 85,360 85,535 TOTAL LIABILITIES AND FUND BALANCE $254.294 o The accompanying notes are an integral part of the financial statements. 5 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Actual REVENUES: Property Taxes: Current Delinquent Area Wide Apportionement Penalties and Interest Total Property Taxes $136,203 4,965 3,171 1,406 145,745 . ~O Licenses and Permits: Business: Cigarette Contractor Dog Kennel Junk Yard Nonintoxicating Malt Liquor Landfill Nonbusiness: Building Reports Heating Plumbing Sewer Sewer Connection Sewer Pumping Well Certificate of Occupancy Dog Other Total Licenses and Permits 36 5,600 50 825 120 3,710 26,882 69 2,219 4,602 3,615 1,564 376 2,040 452 643 404 53,207 1 j ~ ! i ; ~ ~ 1 I ntergovernmental Revenue: Federal Grants: Comprehensive Employment Act State Grants: Homestead Credit State Highway Aid Local Government Aid Agricultural Credit Other Local Governments: Planning Grant Total Intergovernmental Revenue 4,726 167,282 3,746 51,648 17,445 89,717 o Page 1 of 9 Budget $141,863 4,725 1,750 148,338 36 6,000 75 750 140 2,520 34,250 50 2,325 6,200 4,000 625 400 2,475 620 1,000 375 61,841 7,200 48,750 17,415 89,717 1,680 5,000 169,762 The accompanying notes are an integral part of the financial statements. 6 .. -.'-..- .. . ---- o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 o REVENUES: - (Continued) Charges for Services: General Government: Zerox Copies Assessment Searches Sale of Maps and Ordinances Plat Fees Special Use Variance Public Safety: Dog Impounding and Board Sanitation: Administrative Fees - Sewer Project Total Charges for Services Fines and Forfeits: County Court Fines Miscellaneous Revenues: Rent Interest on Time Deposits Contributions for Park Employee I nsurance Collections Donation to Fire Department Pop Vending Machine Other Revenue Collected for Other Agencies: Sewer Availability Charges Sewer Availability Charges, Surcharge Planning and Zoning Escrow Deposits Refunds and Reimbursements Total Miscellaneous Revenues Total Revenues OTHER SOURCES: Transfers From Other Fund: Special Revenue Fund Anti-Recessional Total Other Sources o Total Revenues and Other Sources Actual Page 2 of 9 Budget $ 61 971 112 2,817 900 $ 150 1,500 250 3,250 1 ,500 1,200 1,086 330 6,277 375 8,225 7,386 9,000 1,175 9,597 25,064 1,273 1,625 943 718 2,000 9,500 2,000 13,900 3,562 10,679 17,796 86,332 466,229 10,625 5,500 18,000 28,000 75,625 472,791 36,482 36,433 3,500 36,482 502,711 39,933 512,724 7 The accompanying notes are an integral part of the financial statements. o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Page 3 of 9 Budget Actual . EXPENDITURES: General Government: Legislative: Council: Salaries Employer Contributions Miscellaneous Membership Dues Insurance Publication of Ordinance and Proceedings Total Council Executive: Mayor: Salary Benefits Transportation and Conferences Total Mayor Administration: Salaries, Clerk Treasurer Salaries, Engineer, Administrator Salaries, Other Employer Contributions: Pension Social Secu rity Insurance Office Supplies Postage Transportation Printing Surety Bond Premium Repair and Maintenance Copy Machine Rent School Dues Other Capital Outlay: Office Equipment Total Administration $ 10,897 665 2,127 1,967 $ 10,900 500 150 2,200 2,500 415 16,071 800 17,050 2,400 122 2,400 160 90 2,650 16, 827 15,000 14,650 1,730 1,904 1,273 810 1,400 200 1,200 100 1,000 900 250 600 57,844 2,522 18,250 15,584 1,868 2,074 1,419 619 652 192 446 284 23 1,116 312 768 43,607 ~ o The accompanying notes are an integral part of the financial statements. 8 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 EXPENDITURES: - (Continued) General Covernment: (Continued) Elections: Supplies Capital Outlay: Voting Machines Total Elections Page 4 of 9 Budget Actual $ 14 $ 1,294 1,308 1,300 1,300 Assessing: Office Supplies Transportation School Dues Contractual Total Assessing 14 400 200 800 50 6,000 7,050 3,000 28,700 36,700 . Auditing Legal Engineering 3,000 3,414 4,050 22,898 56,239 Personnel Administration: Workmen's Compensation Overtime/Part Time Total Personnel Administration 2,734 3,500 3,000 6,500 2,734 ~ j ~ ~ . ~ i ~ ~ Planning and Zoning: Salaries: Members Clerical Employer Contributions: Pension Social Security Insurance Office Supplies Professional Services: Planners Miscellaneous Printing Refunds Postage Xerox Rental Capital Outlay: Equipment Total Planning and Zoning 2,530 4,916 3,060 5,262 255 298 160 513 289 318 210 900 3,875 176 409 2,865 646 1,116 5,000 300 900 2,000 1,050 1,600 150 21,039 t ; 10 i 17,759 i ] . 1 ~ I The accompanying notes are an integral part of the financial statements. 9 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Page 5 of 9 . EXPENDITURES: - (Continued) General Government: (Continued) Buildings: Federal Building: Salary of Custodian Employer Contributions: Pension Social Security Insurance Supplies: Office Operating Communication Insurance Public Utility Services Repair and Maintenance Miscellaneous Capital Outlay: Building Improvements Total General Buildings Budget Actual Public Works Building: Heat and Electric Operating Supplies Small Tools Telephone Insurance Mi scellaneous Capital Outlay Total Public Works Building 915 $ 2,683 147 26 174 11 108 400 1,004 1,100 2,354 2,000 2,287 6,000 4,256 2,500 651 800 22 250 333 11,859 16,162 3,915 1,050 119 400 100 367 280 308 2,000 200 4,709 4,030 978 550 346 200 100 186 280 335 1,500 374 200 2,219 2,830 18,787 23,022 189,389 204,855 $ Fire Department Building: Heat and Electric Operating Supplies Small Rools Telephone Insurance Miscellaneous Total Fire Department Building Total General Government Buildings o Total General Government The accompanying notes are an integral part of the financial statements. 10 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Actual EXPENDITURES: - (Continued) Public Safety: Police Protection o Fire Protection: Salaries Employer Contributions: Pension Social Security Workmen's Compensation Supplies Small Tools and Equipment Repairs and Maintenance Transportation Building Rental Heating Insurance City of Anoka Fire Department Surplus Fund Expenditures Schools Other Relief Association Capital Outlay: Machinery and Equipment Total Fire Protection $ 83,258 3,249 18 27 2,751 4,742 699 1,281 295 380 779 5,208 12,631 707 1,610 2,500 1,500 38,377 18,806 1,042 1,101 1,192 469 542 215 292 8 68 433 252 Protective Inspection: Salaries Employer Contributions: Pension Social Security Insurance Supplies: Office Operating Postage Printing Transportation Repairs Maintenance Insurance Membership Dues o Page 6 of 9 Budget $ 89,353 2,850 3,750 2,350 1,500 3,500 10,000 10,000 1,000 900 2,500 1,600 39,950 20,005 1,100 1,210 1,274 550 1,400 350 500 100 400 310 1,040 The accompanying notes are an integral part of the financial statements. 11 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 EXPENDITURES: - (Continued) Public Safety: (Continued) Protective Inspection: (Continued) Xerox Rental Miscellaneous Building Permit Surcharge Sewer Availability Charges Capital Outlay: Equipment Total Protective Inspection Actual Page 7 of 9 Budget Total Public Safety $ 279 $ 400 30 1,000 3,156 5,280 20,611 1 0 , 500 2,006 350 50,502 45,769 46 80 390 650 184 200 117 3,500 5,500 4,237 6,430 176,374 181,502 o Animal Control: Salaries Gopher Control Operating Supplies Miscellaneous Contractual Services: Dog Catcher Total Animal Control o Streets and Highways: Street and Alley: Salaries Employer Contributions: Pension Social Security Insurance Repai r and Maintenance Printing Insurance Grading Grading Projects Repair Projects Sweeping Capital Outlay: Equipment Special Sealcoating Snow and Ice Removal Street Lighting Street Signs Total Highways and Streets 11,864 9,208 597 506 671 557 666 544 3,924 24,700 106 657 525 40,896 16,000 1,002 2,533 3,000 664 850 3,000 23,245 20,000 19,186 15,202 306 340 2,469 5,000 108,786 99,432 The accompanying notes are an integral part of the financial statements. 12 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Actual Page 8 of 9 Budget o EXPENDITURES: - (Continued) Sanitation: Sewers: Salaries Employer Contributions: Pension Social Security Insurance Contractual Cleaning Supplies Diseased Trees: Salaries Employer Contributions: Pension Social Security Insurance Other Total Sanitation $ 2,773 148 158 138 377 $ 1 ,471 81 92 151 2,500 200 2,941 4,417 167 135 138 18 6,993 242 276 151 3,500 13,081 o Recreation: Administration: Commission Salaries Parks: Park Areas: Salaries Employer Contributions: Pension Social Security Insurance Supplies: Operating Repair and Maintenance Midwest Planning Insurance Postage Summer School Program Miscellaneous Commission Schools Capital Outlay: Improvements Equipment Other Total Parks Total Recreation 535 700 7,499 6,316 348 424 413 292 321 229 2,258 450 559 549 1,300 1,200 1,000 525 350 6,392 6,144 10,800 6,392 10,662 10,005 24,088 69 63,716 64,251 10,000 8,500 53,369 54,069 The accompanying notes are an integral part of the financial statements. 13 o CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Total Expenditures Page 9 of 9 Actual Budget $ $ 4,300 892 4,125 5,922 5,000 120 11,059 9,300 556,852 $562.239 (54,141) 139,676 $ 85.535 EXPENDITURES: - (Continued) Miscellaneous: Metropolitan Waste Control Pop for Machine Miscellaneous Improvement Projects Refunds and Reimbursements Total Miscellaneous NET INCREASE (DECREASE) IN FUND BALANCE I '0 j FUND BALANCE at January 1 FUND BALANCE at December 31 ! i J i . 1 J I 1 1 I ! ~ I JO The accompanying notes are an integral part of the financial statements. 14 1 ~I ~;~ ~ .-N M ...- ...-CO O'l ~ ...-~ 1.0 ...- ~ <.0 <.0 1.0 M M N -<fT ~ ~I ...- 3 ...- 3 <.0 <.0 1.0 1.0 ~ ~ <t: M M l- I- -<fT -<fT O(j) UJ (j)o UJ Wz Im Z:J (j)r- Zu. wen ~UJ ...- U <.0 <.0 ...- ~ ...- ...- N .~ ~:J Z ~ L MON ...- ...- 1.0 ~z <(M (]) r-ON ...- ...- co UJUJ ....J ~ ~ ~ L!')N I"- >> <t:~ (]) ...- ...- oUJ OJUJ (f) -<fT -<fT 1.0 o~ OJ ...- 0~ <Jl Z....J +-> ZUJ C <t:<t: -u (]) LLU ZUJ E mO C (]) OUJ 0 ~ 3 ~ 3 ...... >-0- 2: rtl I <Jl ~ ~ +-> I-(f) 0 +:i Vl co co Vl U C (]) - <t: U ...- .- rtl U (]) -<fT -<fT U I.. 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I.. :J - C .- X (]) tile 0""" (]) > ~ <JlC rtlo..(]) (]):JELUJ ::3 (]) L .~ - I.. :J V) cOo.. (]) ^' tIl <Jl (]) Vl.~ :J V) 0.. (]) rtl _ .- (j) ro l.L (]) ~ C U <Jl Ol- rtl:J +-> :J ~'C..Q (]) 0 C t'll rtl Qj +-> CT ~ 0 I- L rtl 0.. 0.. (j) -.- 0 +-> U '0..- UJ ~ I- -rtl-E ~ <Jl<Jl :> o +-> rtl ~ 0 0'- rtl (]) Z .[: V) UJ 0 I 0.. 2 U (j) UJrtl o..(j) X UJ rtl +-> o I- Q o CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUND BALANCE SHEET DECEMBER 31, 1979 1978 General Obligation Bond ASSETS Cash Delinquent Taxes Receivable Receivable from Other Funds $34,696 2,102 8,862 $45,660 TOTAL ASSETS FUND BALANCE $45.660 o o The accompanying notes are an integral part of the financial statements. 17 o CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE DECEMBER 31, 1979 1978 General Obligation Bond REVENUES: Property Taxes: Current Aera Wide Apportionment Total Property Taxes I ntergovernmental Revenue: State Homestead Credit Other Revenues: I nterest on Investments $45,735 1,027 46,762 16,734 472 Total Revenues 63,968 EXPENDITURES: Debt Service: Interest Service Charge Total Debt Service o FUND BALANCE at December 31, 1979 18,283 25 18,308 $45.660 o The accompanying notes are an integral part of the financial statements. 18 ,....0 ~ CON 0 0...- ...- ~ ~I ...-0 enr- r- ...-M ~ 00 <.O~ ...- en en CO ~ ~ ~ ~ ~ ~ ~ NI1'l en 0 01.0 <.0 en N M ~N <.0 -<fT -<fT j <.0 3 <.0 <.0 3 <.0 <.0 <.0 1.0 1.0 1.0 ~ ~ ~ 1.0 1.0 I1'l -<fT -<fT I (]) (]) U W UJ .- -0 OJ rtl I.. rtl-o 0 Z Z .- 0 I.. co .- 0 0 L~ I.. 0.. 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I- e o . o CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL FIXED ASSETS DECEMBER 31, 1979 GENERAL FIXED ASSETS: Land and Improvements Building and Improvements Furniture and Equipment Machinery and Automotive Equipment Other Improvements TOTAL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS o $ 65,680 383,062 24,079 266,515 4,578,161 $5.317.497 $5.317.497 o The accompanying notes are an integral part of the financial statements. 24 o CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT YEAR ENDED DECEMBER 31, 1979 AMOUNT TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG-TERM DEBT BOND PRINCIPAL City Serial Bonds Amount Available in Debt Service Fund Amount to be Provided - Note 6 Total $ 45,660 469,340 $515.000 GENERAL LONG-TERM DEBT PAYABLE GENERAL LONG-TERM DEBT City Serial Bonds - Note 4 Certificates of Indebtedness Total $430,000 85,000 $515.000 o o The accompanying notes are an integral part of the financial statements. 25 o CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1979 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting Policies of the City of Andover conform to generally accepted accounting principles applicable to governmental units. The following is a summary of the significant policies. A. DESCRIPTION OF FUNDS The accompanying financial statements include the funds administered by the City Council of the City of Andover. Due to the diverse nature of governmental operations, the necessity of complying with various legal provisions and compliance with reporting requirements the accounts of the City are organized on the basis of funds or groups of accounts; each of which is considered to be a separate ac- counting entity. The operations of each fund are accounted for by pro- viding a separate set of self-balancing accounts which comprise each Fund's assets, liabilities, fund balance, revenues and expenditures, The following is a description of the funds included in the accompanying financial statements: o General Fund The General Fund accounts for all revenues and expenditures of the City which are not accounted for in the other funds, Revenues are primarily derived from general property taxes, license permits and fees and revenues from the State, Expenditures are for general government services including police and fire protection, parks and recreation and general administration. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of revenues derived from specific taxes or other earmarked revenue sources, They may also be used to finance specified activities as required by law or administrative regulation. Debt Service Fund Debt service funds account for revenues for, and the payment of, interest and principal on general long-term debt. Capital Projects Funds o Capital Projects Funds are used to account for all resources used for the acquisition of major capital facilities or equipment by the City, except those financed through special assessment or enterprise funds. 26 o CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1979 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. DESCRIPTION OF FUNDS (Continued) Special Assessment Funds Special Assessment Funds are used to finance and account for the construction or purchase of improvements which are to be paid partially or entirely from special assessments levied against the benefiting properties. General Fixed Assets Group of Accounts The general fixed assets group of accounts includes City fixed assets which are not accounted for in the enterprise funds. o General Long-Term Debt Group of Accounts The general long-term debt group of accounts includes all general obligation long-term debt of the City not accounted for elsewhere. The fund balances of the debt service funds are dedicated for debt retirement and, accordingly are recorded as an asset in this group of accounts. B. BASES OF ACCOUNTING The modified accrual basis, in 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 or available revenues which are accrued to properly reflect earned value, is utilized by the City in recording the transactions of its funds. Recognition of Property Tax Revenue Taxes and special assessment principal are recorded as revenue when levied. Investments Investments in all funds are recorded at cost which approximates market value. Investment income is recorded when earned and received. o I nterest I ncome on Special Assessments Interest income is recognized on special assessments when payments are received. 27 o CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1979 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. BASES OF ACCOUNTING (Continued) Insurance Expense Insurance costs are expensed in the period in which they are paid. Prepaid insurance is not recorded for policies which extend beyond year end, I nventories of Materials and Supplies Purchases of materials and supplies are recorded as expenditures at the time purchased, General Fixed Assets General fixed assets purchases are recorded as expenditures in the various funds at the time of purchase. These assets are capitalized at cost in the general fixed asset group of accounts. o The City does not maintain detailed records of its general fixed assets. The values of the general fixed assets presented in this report are stated at the balances presented in December 31, 1976 financial report plus subsequent assets additions at cost, Amount Available in Debt Service Funds The fund balances of the debt service funds are dedicated for the retirement of long-term bonded indebtedness of the City and are recorded as an asset in the general long-term debt group of accounts. NOTE 2 - PENSIONS Employees of the City are covered by the Public Employees Retirement Association (PERA). Since PERA is managed by the State of Minnesota the City has no responsibility for its administration. PERA participants are enrolled in one of two plans, either the Basic or Coordinated. The Basic Plan requires an employee contribution of 8% of annual salary and an employer contribution of 10-1/2%. The Coordinated Plan, in conjunction with Social Security, requires an employee contri- bution of 4% of annual salary and an employer contribution of 5-1/2%. o In 1979 the City's contribution for PERA was $5,287 and for Social Security was $6,443. 28 o CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1979 NOTE 3 - BONDS PAYABLE As of December 31, 1979 the bonds payable of the City consisted of the following: Total Due in 1980 Due After 1980 General Obligation Bonds payable annually in varying amounts through February 1, 1989 with interest of 5.5% to 6.0%. Special Assessment Bonds payable annually in varying amounts through February 1, 1999 with interest of 5.0% to 6.8%, $ 515,000 $ 47,000 $ 468,000 4,104,800 107,400 $154.400 3,997,400 $4.465.400 Total $4.619.800 NOTE 4 - FUNDS ESTABLISHED DURING THE YEAR Improvement No. 79 o The City sold $270,000 of General Obligation Improvement Bonds of 1979 to finance the construction of street improvements, The bonds are general obligations of the City for which its full faith and credit and unlimited taxing power are pledged, in addition to special assess- ments in the approximate amount of $259,000 filed against benefiting properties and other future revenue sources as outlined in Note 6. Prairie Road Bridge Approach The Prairie Road Bridge Approach Fund was established to account for all transactions resulting from the improvements to the Prairie Road Bridge Approach. The project is reimbursable by the Municipal State Aid Street Program, Equipment The city sold $85,000 of Certificates of I ndebtedness to finance the purchase of street equipment, 1978 General Obligation Bond The fund was established to provide for the debt service on the $430,000 General Obligation Bonds issue of 1978, Park o The Park Fund was established to account for the proceeds from park dedication fees and the cost of park land acquisition. 29 o CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1979 NOTE 5 - AMOUNT TO BE PROVIDED I n order to provide for the retirement of principal and payment of interest of Bonds the City has provided for future revenues. The balance sheet reflects on Iy the deferred special assessments. Revenues to be collected for future payments are as follows: Improvement No. 75-1: 1. Deferred Special Assesments. 2. Connection charges for future connections in the areas serviced by this improvement which at the present time are undeveloped, The charge will be $1,050 per connection. 3. Future ad valorem tax levies of $499,485. Improvement No. 75-2 and Improvement No, 75-4: 1, Deferred Special Assessments. 2. Future ad valorem taxes levies of $1,646. Improvement No. 76: 1. 2. Deferred Special Assessments Connection charges for future connections in the areas serviced by this improvement which at the present time are undeveloped. The charge will be $1,050 per connection. Sale of aerial maps, Reimbursements from future projects for savings on engineering fees from the use of the aerial maps and comprehensive storm drainage plan developed in connection with and paid for by this improvement. Future ad valorem tax levies of $254,110. o 3. 4. 5. Improvement No, 77: 1. Deferred Special Assessments. 2, Charges for future developments use of ponds constructed in this improvement. 3. Future ad valorem tax levies, Improvement No, 78-1: 1. Deferred Special Assessments. 2. Future ad valorem tax levies. Improvement No. 79: 1. Deferred Special Assessments. 2. Future Ad Valorem tax levies. General 1. Long-Term Debt: Future ad valorem tax levies of $625,615, o 30 OLSEN. THIELEN & 00.. LTD. o 223 LITTLE CANADA ROAD ST. PAUL, MINNESOTA 55117 (612) 483-4521 Honorable Mayor and City Council City of Andover I Minnesota o Our examination was made primarily for the purpose of formulating an opinion on the basic financial statements taken as a whole. The following supplemental information on pages 32 through 35 is not considered necessary for a fair presentation of the financial statements, but is pre- sented as additional analytical data. This information pertaining to the year ended December 31, 1979, except for that information which is statistical in nature, has been subjected to the audit procedures applied in the examination of the basic financial statements and is, in our opinion, fairly stated in all material respects in relation to the basic financial statements, ta ken as a whole, cf4 7Atdn -ral ~;~ , February 14, 1980 o 31 0 CITY OF ANDOVER, MINNESOTA COMBINED SCHEDULE OF INVESTMENTS DECEMBER 31, 1979 Interest Maturity Book Bank Rate Date Value CERTI FICATES OF DEPOSIT: First National Bank in Anoka 6.25% 2/03/80 $ 90,000 First National Bank in Anoka 7.00 8/03/81 180,000 First National Bank in Anoka 7.25 8/03/83 130,000 Fi rst National Bank in Anoka 12.4 1/4/80 195,000 First National Bank in Anoka 12,6 1/15/80 150,000 First National Bank in Anoka 13.2 2/18/80 110,000 First National Bank in Anoka 12,6 1/22/80 150,000 First National Bank in Anoka 13.35 3/25/80 200,000 0 First National Bank in Anoka 12.6 1/26/80 145,000 First National Bank in Anoka 12.6 1/26/80 165,000 Total Investments $1.515.000 . 32