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CITY OF ANDOVER. MINNESOTA
FINANCIAL STATEMENTS
DECEMBER 31. 1988
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CITY. OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
SECT ION I
INTRODUCTORY SECTION
Comments
SECTION II
FINANCIAL SECTION
Independent auditor's report
II-A. General Purpose Financial Statements (Combined Financial Statements)
Combined balance sheet - all fund types and account groups
Combined statement of revenue, expenditures and fund balance -
All governmental fund types and expendable trust fund
Combined statement of revenue, expenditures and fund balance -
Budget and actual - General Fund
Combined statement of revenue, expense and retained earnings _
All proprietary fund types - Enterprise funds
Combined Statement of changes in financial position - All proprietary
fund types - Enterprise funds
Notes to financial statements
II-B. Combining and Individual Fund Statements and Account Groups
General Fund
Balance sheets
Statement of revenue, expenditures and fund balance
Schedule of revenue - Budget and actual
Schedule of expenditures - Budget and actual
Special revenue funds
Combining balance sheet
Combining statement of revenue, expenditures and fund balance
Debt service funds
Combining balance sheet
Combining statement of revenue, expenditures and fund balance
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CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
II-B. Combining and Individual Fund Statements and Account Groups
(Continued)
Capital projects funds
Combining balance sheet
Combining statement of revenue, expenditures and fund balance
Enterprise funds
Combining balance sheet
Combining statement of revenue, expense and retained earnings
Combining statement of changes in financial position
Water Fund
Balance sheets
Statements of revenue, expense and retained earnings
Statements of changes in financial position
Sewer Fund
Balance sheets
Statements of revenue, expense and retained earnings
Statements of changes in financial position
Fiduciary funds
Combining balance sheet
Expendable Trust Fund
Statements of revenue, expenditures and fund balance
Agency Fund
Statement of changes in assets and liabilities
Statements of general fixed assets
Statements of general long-term debt
II-C. Supplemental Information
Schedule of cash, temporary investments and security for deposits
Combined schedule of indebtedness
Schedule of bonds payable
Debt service requirements
Schedules of sources and uses of public funds - tax increment districts
Schedule of resources available for payment of G.O. Improvement
(special assessment) Bonds
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CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
Page
SECTION III
STATISTICAL SECTION
Tax levies and collections
Special assessment levies and collections
Computation of legal debt margin
Assessed valuations, tax levies and mill rates
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SECTION IV
OTHER
Auditors' report on legal compliance
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I SECTION I
INTRODUCTORY SECTION
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CITY of ANDOVER
1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 . (612) 755-5100
COMMENTS
The City of Andover, Minnesota operates under "Optional Plan An as defined by State
of Minnesota Statutes. Under this plan, the Council is elected by popular vote and
consists of the mayor and four council members. Administrative personnel are
appointed by the Council.
General Fund
The General Fund is used to account for all revenues and the activities financed by
them which are not accounted for in a special fund. The principal sources of
revenue are property taxes and intergovernmental revenue. Expenditures are for
general government. public safety, public works, recreation and other functions.
The fund balance decreased $77,680 during the year to $732,000. $42,900 of the
fund balance has been designated for subsequent year's expenditures leaving an
undesignated fund balance of $689,100. A condensed summary of revenue and
expenditures for the years ended December 31, 1988 and 1987 is shown below:
1988
Budget Actual
1987
Budget Actual
Revenue and other sources
Property taxes
Licenses and permits
Intergovernmental revenue
Charges for services
Fines and forfeits
Other revenue
Transfers from other funds
$ 841,000 $ 713,219 $ 601,232 $ 601,682
202.110 236.555 175,424 268,983
558,012 559.246 503,681 526,058
38,670 31,404 23,470 46 , 821
14,000 45,049 14.000 33,496
74,100 84.680 53 , 100 143,543
76,900 94,738 97 ,009 107,992
$1,804,792 $1.764,891 $1,467 , 916 $1,728,575
$ 475,726 $ 521,775 $ 413,950 $ 469',866
635,425 496,710 491,433 413,466
315,610 333,978 267.445 234.814
26,196 12.030 19,293 10.124
182.451 240 ,574 220,647 212.863
74.107 136,209 42,175 104.272
95 ,277 101,295 103,613 102,361
$1,804,792 $1.842,571 $1,558.556 $1,547,766
Expenditures and other uses
General government
Public safety
Public works
Sanitation
Park and recreation
Unallocated
Transfers to other funds
Increase (decrease) in
fund balance
$
-0- $ (77,680) $ (90,640) $ 180,809
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Special Revenue Funds
Special revenue funds are established to account for taxes and other revenue set
aside for a particular purpose.
LRRWMO Fund - This fund was established to account for the City's share of costs
relating to the Lower Rum River Water Management Organization. At December 31,
1988 the fund balance was $4,211.
Drainage and Mapping Fund - This fund was established to accumulate money to cover
the expenses for City-wide drainage and mapping. At December 31, 1988, the fund
balance was $51,094.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources for
payment of general obligation bonds or other general indebtedness and interest
thereon. Property taxes, transfers from the General Fund, state aids and special
assessments provide the primary financing for debt retirement. The long-term
liability (outstanding bond principal) from the issuance of general obligation
bonds and other forms of long-term debt is recorded as a liability in the General
Long-term Debt Account Group.
The funds included with the debt service funds are:
1978 General Obligation Bonds
Certificates of Indebtedness
State-aid Street Bonds
Tax Increment Bonds
G. O. Improvement (special assessment) Bonds
Capital Projects Funds
Capital projects funds are established to account for proceeds from the sale of
bonds and other revenue to be used for the acquisition of capital improvements by
the City. Following is a brief description of each.
Equipment Fund - This fund was established to accumulate resources to be used for
equipment acquisition. The fund balance was $21,819 at December 31, 1988.
1987 Equipment Fund - This fund was established to account for the proceeds of
certificates of indebtedness issued to pay for the acquisition of warning sirens.
The fund balance was $17,061 at December 31, 1988.
Tax Increment Fund - This fund was established to account for the proceeds of tax
increment bonds to be used for the acquisition and/or improvement of land which is
to be developed. The fund balance was $105,439 at December 31, 1988.
Park Fund - The Park Fund was established to account for revenue, primarily park
dedication fees, to be used for the acquisition and improvement of parks. The fund
balance was $73,109 at December 31, 1988.
State Aid Fund - This fund was established to account for aid received from the
State of Minnesota for construction of certain designated streets. The fund
balance was $349,822 at December 31, 1988.
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Capital Projects Funds (Continued)
Special Assessment Funds - Special assessment funds are established to account for
assessments levied to finance improvements or services deemed to benefit the
properties against which the assessments are levied. Primarily, the transactions
accounted for are the receipt of bond proceeds or other sources of financing and
disbursement of such proceeds for construction work done. The fund balance at
December 31, 1988 was $1,661,024.
Enterprise Funds
Enterprise funds are established to account for the financing of self-supporting
activities of governmental units which render services to the general public on a
user charge basis.
The Water fund was established in 1981; a condensed summary of operations for the
last three years is as follows:
1988 1987 1986
Operating revenue $ 171,897 $113,506 $ 59,508
Operating expense (excluding depreciation) 102,574 86,881 61,559
$ 69,323 $ 26,625 $ (2,051)
Depreciation (110,385 ) (82,131) (61,047)
Operating income (loss) $ (41,062) $ (55,506 ) $(63,098)
Other income (expense) - Net 2,538 (194) 237
Net loss before operating transfers $ (38,524) $ (55,700) $ (62, 861)
Operating transfers - Net (3,648) (1,349) (1,103)
Net loss $ (42,172) $ (57,049) $ (63,964)
A condensed summary of Sewer Fund operations for the last three years is as follows:
Operating revenue
Operating expense (excluding depreciation)
1988 1987 1986
$ 164,512 $ 135,194 $164,892
157,654 119,016 114,603
$ 6,858 $ 16,178 $ 50,289
(168,083) (132,402) (104,204)
$(161,225) $(116,224) $(53,915)
1,189 599 4,571
$(160,036) $(115,625) $ (49,344)
(4,154) (84,658) 9
$(164,190) $(200,283) $ (49,335)
Depreciation
Operating loss
Other income (expense) - Net
Net loss before operating transfers
Operating transfers Net
Net loss
III
Fiduciary Funds
The Administrative Trust Fund was established to account for administrative fees
charged to assessable construction projects. Annual transfers are made to the
General Fund to reimburse administrative expenses. The fund balance was $415,915
at December 31, 1988.
The Escrow Fund was established to account for monies held by the City as deposits
for developers and others. The deposits will be refunded when the conditions set
by Council are complied with.
General Fixed Assets
This account group is used to show the general fixed assets of the City. Public
domain general fixed assets consisting of certain improvements other than
buildings, including roads, bridges, curbs and gutters, streets and sidewalks,
drainage systems and lighting systems are not capitalized along with other fixed
assets. These assets are used in the performance of the general governmental
functions. As of December 31, 1988, the general fixed assets of the City amounted
to $2,172,221.
General Long-term Debt
General obligation bonds and other forms of long-term debt that are obligations of
the City as a whole and not its individual funds are accounted for in this self-
balancing account group. Long-term debt included in the account at December 31,
1988 is as follows:
Original
amount
Outstanding
December 31, 1988
Bonded debt
1978 G.O. Bonds
Certificates of Indebtedness
State Aid Street Improvement Bonds
G.O. Tax Increment Bonds
G.O. Improvement (special assessment)
Bonds
$ 430,000
365,000
1,010,000
1,270,000
$ 50,000
233,000
810,000
1,270,000
31,179,000
24,509,100
$26,872,100
Total bonded debt
Assessments on City property
Equipment purchases
Long-term payable - Metropolitan Waste
Control Commission
Vacation payable - Governmental funds
264,756
23 , 991
234,495
20,012
43,018
10,409
41,197
$27,178,213
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SECTION II
FINANCIAL SECTION
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GMHCo
GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation afCertified Public Accountants
INDEPENDENT AUDITORS' REPORT
The City Council of
Andover, Minnesota
We have audited the accompanying general purpose financial statements of the City
of Andover, Minnesota, as of December 31, 1988, and for the year then ended, listed
in the foregoing table of contents. These financial statements and the supplemental
statements and schedules discussed below are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the general purpose financial statements referred to above present
fairly the financial position of the City of Andover, Minnesota, at December 31,
1988, and the results of its operations and changes in financial position of its
proprietary fund types for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that of the
prececing year, after giving retroactive effect to the change, with which we
concur, in accounting for special assessments, as described in Note 2 to the
financial statements.
Our audit was made for the purpose of forming an op~n~on on the general purpose
financial statements taken as a whole. The combining, individual fund and account
group financial statements and schedules and the supplemental information listed in
the foregoing table of contents are presented for purposes of additional analysis
and are not a required part of the general purpose financial statements. Such
information has been subjected to the auditing procedures applied in our audit of
the general purpose financial statements and, in our opinion, is fairly stated in
all material respects when considered in relation to the general purpose financial
statements taken as a whole. Our audit did not include the statistical information
listed in the table of contents.
)J~t- ~ I~ ~. f?/j
June 6, 1989
1433 UTICA AVENUE SOUTH, SUITE 175
MINNEAPOLIS. MINNESOTA 55416
61 2/546-2566
CITY OF ANDOVER, MINNESOTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1988
ASSETS
Cash and temporary investments
Accrued interest receivable
Taxes receivable
Unremitted
Delinquent
Accounts receivable
Special assessments receivable
Unremitted
Delinquent
Deferred
Other
Due from other governmental units
Inventory
Property and equipment - Net
Amount available in debt service funds
for payment of bond principal and interest
Amount to be provided by future revenues
Total assets
LIABILITIES ~ID FUND EQUITY
Liabilities
Cash deficits
Accounts payable
Accrued expenses
Contracts payable
Due to other governmental units
Deposits payable
Deferred revenue
Bonds payable
Total liabilities
Fund equity
Contributed
Invested in General Fixed Assets
Retained earnings
Reserved
Unreserved
Fund balance
Reserved
Unreserved
Designated for subsequent year's expenditures
Undesignated
Total fund equity
Total liabilities and fund equity
See accompanying notes to financial statements.
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General
$803.843
3,034
15,196
27,699
8,766
3,895
$862,433
$ 80,811
17,656
4,267
27,699
$130,433
$ 42,900
689,100
$732,000
$862,433
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Fund
Debt
Service
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Governmental
Special
Revenue
$55,078
227
$55,305
$55,305
$55,305
$55,305
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$ 9,695,826
55,305
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13,803
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53 ,383
163,725
10,702,893
335,617
258,017
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11,474,055
$11,486,598 C
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$21,282,934 ~
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I Account Groups
Types Proprietary General General Total
I Capital Fund Type Fixed Long-term (Memorandum Only)
Proj ects Enterprise Fiduciary Assets Debt 1988 1987
(Rest ated)
I $2,127,713 $ 96,903 $1,259,029 $14,038,392 $13,366,645
7,729 559 7,127 73,981 71,913
I 19,561 90.625
41,502 28,661
100 91,839 100,705 305,197
I 53,383 16,182
163,725 147,423
537,475 11,240,368 6,981,392
I 335,617 701,366
495 ,740 757,652 381,623
2.976 2,976 5,529
I 13,093,614 $2,172,221 15 , 26 5 , 835 12,458,717
$ 9.796,336 9,796,336 7,645,589
I 17,381,877 17,381, 877 14,126,666
$3,168.757 $13,285,891 $1,266,156 $2,172,221 $27,178,213 $69, 271, 91 0 $56,327,528
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I $ 135 , 680
$ 62,227 $ 4,571 $ 12,500 $ 234,495 $ 407,147 249,282
3,409 41,197 62,262 51,309
334,781 20,012 354,793 650,405
I 17,214 10.409 31,890 20,497
6,000 837,741 843 ,741 675,084
537,475 12,039,229 7,858,842
I 26,872,100 26,872,100 21,634,800
$ 940,483 $ 25,194 $ 850,241 $27,178,213 $40,611,162 $31,275,899
I $13,087,172 $13,087,172 $10,497,095
$2,172,221 2,172,221 1,955,250
7,729 7,729 7,219
I 165,796 165,796 96,117
227,651 10,023,987 7,662,589
I 42,900 14,838
2,000,623 415,915 3,160,943 4,818,521
$2,228,274 $13,260,697 $ 415,915 $2,172,221 $28,660,748 $25,051,629
I $3,168,757 $13,285,891 $1,266,156 $2,172,221 $27.178,213 $69, 271,910 $56,327,528
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CITY OF ANDOVER, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
YEAR ENDED DECEMBER 31, 1988
General
Governmental Fund
Special Debt
Revenue Service
Revenue
Property taxes
Licenses and permits
Intergovernmental revenue
Special assessments
Charses for services
Fines and forfeits
Interest
Park dedication fees
Other
$ 90,073
$ 713,219
236,555
559,246
31,404
45,049
37,333
$ 352
102,846
3,102,549
2,438
544,034
47,347
$1,670,153
$3,839,502
$ 2,790
Total revenue
Other sources
Bond proceeds
Transfers from other funds
Total revenue and other sources
94,738
$1,764,891
18,332
$21,122
1,755,397
$5,594,899
Expenditures
General government
Public safety
Public works
Sanitation
Parks and recreation
Unallocated
Capital proj ects
Redemption of bonds
Interest
$ 521,775
496,710
333,978
12,030
240,574
136,209
$ 6,414
1,062,700
1,405,214
$2,474,328
Total expenditures
$1,741,276
Other uses
Transfers to other funds
Total expenditures and other uses
101,295 969,824
$1,842,571 $3,444,152
$ (77,680) $21, 122 $2,150,747
$ 809,680 $34,183 $ 301,207
7,344,382
$ 809,680 $34,183 $7,645,589
$ 732,000 $55,305 $9,796,336
Increase (decrease) in fund balance
Fund balance (deficit) January 1
As previously reported
Adjustment for change in accounting for
special assessment funds - Note 2
As adj ust ed
Fund balance December 31
See accompanying notes to financial statements.
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I Types Total
Capital Special Expendable (Memorandum only)
Proj ects Assessment Trust 1988 1987
I (Restated)
$ 803,292 $ 649,393
236,555 268,983
I $ 153,324 815,416 1,221,627
24,708 3,127,609 3,253,674
31,404 244,310
I 45,049 33,496
220,685 $ 19,609 824,099 638,317
51,065 51,065 26 , 265
I 70,081 117,428 120,321
$ 519,863 $ 19,609 $ 6,051,917 $ 6,456,386
I 6,219,350 6,219,350 7,969,126
113,585 179,093 2,161,145 2,173,668
$ 6,852,798 $198,702 $14,432,412 $16,599,180
I $ 521,775 $ 474,031
496,710 413,466
I 333. 978 234,814
12,030 10,124
240,574 212,863
j I 142,623 117,415
$ 7,300,597 7,300,597 6.901,554
1,062,700 4,148,700
. 30,987 1,436,201 1, 170 , 215
I $ 7,331,584 $11,547,188 $13,683,182
I 1,027,932 $ 54,292 2,153,343 2,087,661
$ 8,359,516 $ 54,292 $13,700,531 $15,770,843
.
I I $ (1,506,718) $144,410 $ 731,881 $ 828,337
$ 361,256 $(8,869,682) $271,505 $(7,091,851) $ (5,343,888)
) I 3,373,736 8,869,682 19,587,800 17 ,011,500
! $ 3,734,992 $ -0- $271,505 $12,495,949 $11,667,612
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] I $ 2,228,274 $ -0- $415,915 $13,227,830 $12.495,949
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COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED DECEMBER 31, 1988
CITY OF ANDOVER, MINNESOTA
Revenue
Property taxes
Licenses and permits
Assessments
Intergovernmental revenue
Charges for services
Fines and forfeits
Interest
Other
Total revenue
Other sources
Transfers from other funds
Total revenue and other sources
Expenditures
General government
Public safety
Public works
Sanitation
Recreation
Other unallocated
Total expenditures
Other uses
Transfers to other funds
Total expenditures and other uses
Increase (decrease) in fund balance
Fund balance January 1
Fund balance December 31
See accompanying notes to financial statements.
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General Fund
Budget Actual
$ 841,000 $ 713,219
202,110 236,555
558.012 559,246
38,670 31,404
14,000 45 , 049
20,000 37,333
54,100 47,347
$1,727,892 $1,670,153
76.900 94,738
$1,804,792 $1,764,891
$ 475,726 $ 521,775
635,425 496,710
315,610 333,978
26,196 12,030
182,451 240.574
74,107 136,209
$1,709,515 $1,741,276
95 , 277 101,295
$1,804,792 $1,842.571
$ -0- $ (77,680)
809,680 809,680
$ 809,680 $ 732.000
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CITY OF ANDOVER, MIN}~SOTA
COMBINED STATEMENT OF REVENUE, EXPENSE AND RETAINED EARNINGS
ALL PROPRIET,ARY FUND TYPES - ENTERPRISE FUNDS
YEAR ENDED DECEMBER 31, 1988
Operating revenue
User charges
Meters
Permit fees
Penalties
Other
Operating expense (excluding depreciation)
Personal services
Supplies
Meters, etc.
Other services and charges
Disposal charges
Operating income before depreciation
Less depreciation
On assets acquired with own funds
On assets acquired from contributions
Operating loss
Other income (expense)
Interest income
Interest expense
Net loss before operating transfers
Operating transfers to other funds
Net loss
Disposition of net loss
Net loss
Add credit from transfer of depreciation to
contributions in aid to construction
Income (loss) transferred to retained
Retained earnings, January 1
Retained earnings, December 31
See accompanying notes to financial statements.
7
Totals
1988
1987
$
284,234 $ 205,344
26,825 26,420
12,680 12,045
7,940 4,662
4,730 229
336,409 $ 248,700
61,705 $ 57,306
17,706 11,693
20,923 21,479
33,331 21,898
126,563 93,521
260,228 $ 205.897
$
$
$
$ 76.181 $ 42,803
$ 1,917 $ 1,603
276,551 212,930
$ 278,468 $ 214,533
$(202,287) $(171,730)
$ 3,727 $ 1,026
(621)
$ 3,727 $ 405
$(198,560) $(171,325)
(7 , 80 2) (86 ,007)
$(206,362) $(257,332)
$ (206 ,362) $(257,332)
276,551 212.930
earnings $ 70,189 $ (44,402)
103,336 147,738
$ 173.525 $ 103,336
CITY OF ANDOVER, MINNESOTA
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
ALL PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
YEAR ENDED DECEMBER 31, 1988
Totals
1988 1987
Sources of working capital
Operations
Net loss
Item not requ~r~ng working capital
Depreciation
Total provided by operations
$ (206,362) $ (257,332)
278,468 214,533
$ 72 , 106 $ (42,799)
18,647
2,866,628 3,014,978
$2,938,734 $2,990,826
$2,868,615 $3,016,165
18,835
$2,868,615 $3,035,000
$ 70,119 $ (44,174)
Decrease in other assets
Contribution of property
Uses of working capital
Acquisition of property and equipment
Decrease in deferred revenue
Increase (decrease) in working capital
Elements of change in working capital
Cash and temporary investments $ 75,009 $ (44,299)
Accrued interest receivable 430 (735 )
Accounts receivable 23,400 13 , 90 2
Special assessment receivable (7,398) (4,148)
Due from other governmental units (8,306)
Inventory (2,553) (10)
Accounts payable (1,215 ) (1,316)
Due to other governmental units (17,214)
Accrued expenses (340 ) 738
Increase (decrease) in working capital $ 70,119 $ (44,174)
See accompanying notes to financial statements.
8
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1988
Note 1 - Summary of Significant Accounting Policies
The City operates under "Optional Plan A" form of City government according
applicable State of Minnesota Statutes and provides the following services:
safety. public works, sanitation, recreation, public improvements, planning
zoning and general administrative services.
to
pub lic
and
The accounting policies of the City of Andover conform to generally accepted
accounting principles. The following is a summary of the more significant policies:
A. Reporting Entity
The City has implemented National Council on Governmental Accounting
Statement No.3, Defining the Governmental Entity. In accordance with
Statement 3, for financial reporting purposes the City's financial
statements include all funds, account groups, departments, agencies,
boards, commissions and other organizations over which City officials
exercise oversight responsibil ity.
Oversight responsibility includes such aspects as appointment of
governing body members, budget review, approval of property tax levies,
outstanding debt secured by the City's full faith and credit or revenues
and responsibility for funding deficits.
As a result of applying criteria of Statement No.3 certain
organizations have been excluded from City's financial statements as
follows:
Excluded
Firemen's Relief Association - The Association is organized as a
non-profit organization by its members to provide pension and other
benefits to members in accordance with Minnesota statutes. The Board
of Directors is elected by the members. ~~l funding is conducted in
accordance with Minnesota statutes, whereby state aids flow to the
Association, and tax levies are determined by the Association. The
Association pays benefits directly to its members. The Association
may certify tax levies to the County directly if the City does not
carry out this function. Because the Association is able to fund its
program independently of the City, it is excluded from the reporting
entity.
Independent School District Nos. 11 and 15 (Anoka and St. Francis
schools) - The Districts, like all school districts in Minnesota, are
completely independent of any other governmental entity. Each has
its own elected Board of Education and levies its own taxes.
9
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
w
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Note 1 - Summary of Significant Accounting Policies (Continued)
B. Fund Accounting
w
The accounts of the City are organized on the basis of funds and account
groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues and expenditures, or expenses, as appropriate.
Government resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled. The various funds
are grouped, in the financial statements in this report, into seven
generic fund types and three broad fund categories as follows:
m
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GOVERNMENT M., FUND S
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General Fund - The General Fund is the primary operating fund of the
City. It is used to account for all financial resources except those
required to be accounted for in another fund.
m
Special revenue funds - Special revenue funds are used to account for
the proceeds of specific revenue sources that are restricted to
expenditures for specified purposes.
~
Debt service funds - Debt service funds are used to account for the
accumulation of resources for, and the payment of, general long-term
debt principal, interest and related costs.
c
Capital projects funds - Capital projects funds are used to account for
financial resources to be used for the acquisition or construction of
major capital facilities.
c
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PROPRIETARY FUNDS
Enterprise funds - Enterprise funds are used to account for operations
that are (1) financed and operated in a manner similar to private
business enterprises--where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services
to the general public on a continuing basis be financed or recovered
primarily through user charges; or (2) where the governing body has
decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance,
public policy, management control. accountability, or other purposes.
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 1 - Summary of Significant Accounting Policies (Continued)
B. Fund Accounting (Continued)
FIDUCIARY FUNDS
Expendable Trust Funds - The Expendable Trust Funds are used to account
for funds held in trust by the City and are accounted for in essentially
the same manner as governmental funds.
Agency Funds - Agency Funds are used to account for assets held by the
City as an agent for individuals, private organizations, other
governments, and/or other funds. Agency Funds disclose the changes in
the government's custodial responsibilities. They do not involve
measurement of results of operations with assets and liabilities being
measured on the modified accrual basis.
C. Measurement Focus
The accounting and reporting treatment applied to the fixed assets and
long-term liabilities associated with a fund are determined by its
measurement focus. All governmental and expendable trust funds are
accounted for on a spending or "financial flow" measurement focus. This
means that only current assets and current liabilities are generally
included on their balance sheets. Their reported fund balance is
considered a measure of "available spendable resources". Governmental
and expendable trust funds operating statements present increases and
decreases in net current assets. Accordingly, they are said to present
a summary of sources and uses of "available spendable resources" during
a period.
Fixed assets used in governmental fund types operations (general fixed
assets) are accounted for in the General Fixed Assets Account Group,
rather than in governmental funds. Public domain general fixed assets
consisting of certain improvements other than buildings, including
roads, bridges, curbs and gutters, streets and sidewalks, drainage
systems and lighting systems, are not capitalized along with other fixed
assets. No depreciation has been provided on general fixed assets.
Long-term liabilities expected to be financed from governmental funds
are accounted for in the General Long-term Debt Account Group, not in
the governmental funds.
The account groups are not "funds". They are concerned only with the
measurement of financial position. They are not involved with
measurement of results of operations.
11
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
~
Note 1 - Summary of Significant Accounting Policies (Continued)
m
C. Measurement Focus (Continued)
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all assets and
all liabilities associated with their activity are included on their
balance sheets. Their reported fund equity is segregated into
contributed capital and retained earnings components. Proprietary fund
type operating statements present increases (revenue) and decreases
(expenses) in net total assets.
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D. Basis of Accounting
Basis of accounting refers to when revenue and expenditures/expenses are
recognized in the accounts and reported in the financial statements.
Basis of accounting relates to the timing of the measurement made,
regardless of the measurement focus applied.
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Governmental funds and trust and agency funds are accounted for using
the modified accrual basis of accounting. Their revenues are recognized
when they become measureable and available. Substantially all sources
of revenue are accrued.
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Expenditures are generally recognized under the modified accrual basis
of accounting when the related fund liability is incurred, except
principal and interest on general long-term debt which is recognized
when due.
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All proprietary funds are accounted for using the accrual basis of
accounting. Revenues are recognized when they are earned, and expenses
are recognized when they are incurred.
~
E. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
c
Prior to January 1, the budget is adopted by the City Council.
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Formal budgetary integration is employed as a management
control device during the year for the General Fund. Formal
budgetary integration is not employed for other funds.
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The budget for the General Fund, is adopted on a basis
consistent with generally accepted accounting principles.
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Budgeted amounts are as originally adopted, or as amended.
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Budget appropriations lapse at year end, unless appropriated to
the subsequent year by Council action.
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 1 - Summary of Significant Accounting Policies (Continued)
F. Assets and Liabilities
1. Cash and temporary investments - Cash available, in excess of
immediate needs, is invested temporarily in money market accounts,
savings certificates and other investments authorized by State
Statutes. Temporary investments are stated at cost, which
approximates market.
2. Property taxes - Property tax levies are set by the City Council in
October each year and are certified to the County for collection the
following year. In Minnesota, counties act as collection agents for
all property taxes.
The County spreads the levies over all taxable property in the
City. Such taxes become receivables of the City as of January 1.
Property taxes are payable in equal installments by property owners
to the County as follows:
Personal property - February 28 and June 30
Real property - May 15 and October 15
The County remits the collections to the City and other taxing
districts four times year, on or before January 25, April 19,
July 5, and December 4.
Unpaid taxes at December 31 become liens on the respective property
and are classified in the financial statements as delinquent taxes
receivable. The receivable is fully offset by deferred revenue as
it is not available to finance current expenditures.
Taxes payable on homestead property (as defined by State Statutes)
are partially reduced by a homestead credit. This credit is paid to
the City by the State in lieu of taxes levied against homestead
property. The State remits this credit in two equal installments in
July and December each year.
3. Assessments receivable - Special assessments are levied against the
benefitted properties for the assessable costs of special assessment
improvement projects in accordance with State Statutes. The City
usually adopts the assessment rolls when the individual projects are
complete or substantially complete. The assessments are collectible
over a term of years generally consistent with the term of years of
the related bond issue. Collection of most annual installments
(including interest) is handled by the County in the same manner as
property taxes, Some annual installments are collected by the City.
Property owners are allowed to prepay total future installments
without interest or prepayment penalties.
13
CITY OF ANDOVER. MINNESOTA
01
NOTES TO FINANCIAL STATn1ENTS (CONTINUED)
DECEMBER 31, 1988
~
Note 1 - Summary of Significant Accounting Policies (Continued)
F. Assets and Liabilities (Continued)
m
Special assessments receivable include the following components:
m
Other
amounts collected by Anoka County and not remitted to
the City.
amounts billed to property owners but not paid.
assessment installments which will be billed to
property owners in future years.
assessment installments have been postponed in
accordance with City Council policy on State
Statutes.
m
Unremitted
Delinquent
Deferred
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4. Inventory - Inventory held by the proprietary funds is stated at
cost, which is lower than market on a first-in, first-out basis.
The cost of inventory is recognized as an expense at the time the
items are sold or used (consumption method).
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5. Fixed assets/property and equipment - Fixed assets/property and
equipment are valued at historical cost or estimated historical cost
if actual historical cost is not available, Donated fixed assets
are valued at their estimated fair value on the date donated.
c
Depreciation of ~~haustible fixed assets used by proprietary funds
is charged as expense against their operations to arrive at a net
result from operations. Subsequently, depreciation on contributed
property and equipment is transferred as a reduction of
contributions. Accumulated depreciation is reported on proprietary
fund balance sheets. Depreciation has been provided over the
estimated useful lives using the straight-line method. The
estimated useful lives are as follows:
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Collection and distribution systems
Machinery
Furniture and equipment
50 years
20 years
3-15 years
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No depreciation has been provided on general fixed assets.
c
6. Accrued liabilities include unpaid vacation pay for all City
employees. Expense is recognized when the liability is accrued in
the proprietary fund types. The liability for the governmental
funds is recorded in the General Long-term Debt Account Group.
c
G. Revenue, Expenditures and Expense
C
1. General property taxes - Revenue is recognized in the year
collected, with amounts due from the County and received early in
the following year included as revenue. This has the effect of
recognizing general property taxes as revenue when cash is collected
because of the unavailability of the delinquent taxes.
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINlmD)
DECEMBER 31, 1988
Note 1 - Summary of Significant Accounting Policies (Continued)
G. Revenue, Expenditures and Expenses (Continued)
2. Special assessments - Revenue of the governmental funds is
recognized in the year collected, with amounts due from the County
and received early in the following year included as revenue. All
delinquent assessments receivable are offset by a credit to deferred
revenue. This has the effect of recognizing assessment revenue when
cash is collected because of the unavailability of the delinquent
assessments.
3. Interest on investments is recorded as revenue in the period earned.
4. State aids are recorded as revenue when allocations are made by a
statutory formula.
5. Grants - Certain grants received by the City require that eligible
expenditures be made in order to earn the grant. Revenue for these
grants is recorded in the period in which eligible expenditures are
made.
6. Utility service charges are recognized when earned. Unbilled
utility service charges are included in receivables at year-end.
7. Interest on bonded indebtedness is recorded as an expenditure when
paid in the governmental fund types and is recorded when accrued in
the proprietary fund types.
H. Accrued Vacation, Severance and Sick Pay
Vacation pay earned but not paid is recorded as an accrued liability at
year end. In the governmental fund types the expenditure is recorded
when paid; the accrued liability is recorded in the General Long-Term
Debt Account Group. The proprietary fund types expense vacation pay as
accrued and the liability is recorded in the respective fund.
All employees are entitled to severance pay for a portion of their
allowable accumulated sick leave at separation with a minimum of 5 years
service. The liability for severance pay is accounted for the same as
accrued vacation pay.
Sick pay other than the portion that is vested as severance pay is not
recorded as a liability in the financial statements. City employees are
entitled to accrue sick leave to a maximum number of hours. The expense
for sick leave, for all funds, is recorded when paid.
15
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONT INUED)
DECEMBER 31, 1988
Note 1 - Summary of Significant Accounting Policies (Continued)
I. Encumbrances
Encumbrances represent the uncompleted portion of contracts.
Encumbrances outstanding at year end are reported as reservations of
fund balance since they do not constitute expenditures or liabilities.
J. Total Columns on Combined Statements
Total columns on the combined statements are captioned "memorandum only"
to indicate that they are presented only to facilitate financial
analysis. Date in these columns do not present financial position,
results of operations, or changes in financial position in conformity
with generally accepted accounting principles. Interfund eliminations
have not been made in the aggregation of this data.
Note 2 - Accounting Change - Special Assessments
The City has implemented the provisions of Statement No. 6 of the Governmental
Accounting Standards Board, Accounting and Financial Reporting for Special
Assessments. In the past, special assessments (improvement) projects and related
debt were accounted for in special assessment funds in a separate fund type.
Statement No.6 provides that such projects are to be accounted for in capital
projects funds. and the general obligation debt is to be accounted for in the
general long-term debt account group and related debt service funds.
The change in accounting for special assessments has been applied retroactively in
the accompanying financial statements. The effect of the change was to eliminate
the special assessment funds, increase the January 1, 1987 fund balance in the debt
service funds and capital projects funds by $8,725.925 and $1,858,440,
respectively, and transfer the special assessment (improvement) bonds outstanding
of $17,011,500 at January 1, 1987, to the general long-term debt account group.
Individual fund balances were restated as follows:
Fund
As previously
reported
As
restated
Debt service funds
Special Assessment Bonds
Capital projects funds
Special Assessments
$
-0-
$8,725,925
-0-
1,858,440
Additionally, as a result of this change, the excess of revenues and other sources
over expenditures and other uses for the debt service funds increased $2,177,290 in
1988 and decreased $1,381,544 in 1987 and for the capital projects funds decreased
$1,712,712 in 1988 and increased $1,515,296 in 1987
16
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CITY OF A}IDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 3 - Expenditures in Excess of Appropriations
General Fund expenditures of $1,741,276 exceeded appropriations of $1,709,515 by
$31,761.
Note 4 - Cash and Temporary Investments
Cash surpluses are pooled and invested in certificates of deposit, U.S. government
securities, repurchase agreements and commercial paper. Investment earnings are
allocated to funds on the basis of average cash balances. Investments are stated
at cost, which approximates market, and are not identified with specific funds.
Cash and temporary investments at year-end consist of the following:
Bank deposits including certificates of
deposit with maturities within one year
$ 9,050,986
M4 Fund - Money market account
311,765
Investments
U.S. government obligations
Commercial paper
998,980
3,676,011
Petty cash and change funds
650
$14,038,392
In accordance with applicable Minnesota statutes, the City maintains deposits at
depository banks authorized by the City Council.
Minnesota statutes require that all deposits be protected by insurance, surety bond
or collateral. If collateral is pledged as protection for the deposits, the market
value of the collateral must at a minimum be 110% of the deposits not covered by
insurance or bonds (140% in case of mortgage notes pledged). All funds on deposit
at the depositories were fully insured and/or collateralized by collateral held in
safekeeping by the City's agent in the City's name.
State statutes authorize the City to invest in obligations issued by the U.S.
Government or obligations guaranteed by the U.S. Government or its agencies,
repurchase agreements and commercial paper.
17
CITY OF ANDOVER. MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 4 - Cash and Temporary Investments (Continued)
The carrying value, market value and credit risk of the City's investments at
year-end is as follows:
1
Cat egory
2
Carrying
amount
Market
value
3
U.S. government
obligations
Commercial paper
$ 998,980
3,676,011
$ 998,980
3,676,011
$ 997,810
3,676,011
The City's investments are categorized above to give an indication of the level of
risk assumed at year-end. Category 1 includes investments that are insured or
registered or for which the securities are held by the City or its agent in the
City's name. Category 2 includes uninsured and unregistered investments for which
the securities are held by the broker's or dealer's trust department or agent in
the City's name. Category 3 includes uninsured and unregistered investments for
which the securities are held by the broker or dealer, or by its trust department
or agent but not in the City's name.
Note 5 - Special Assessments
The payment of certain special assessments has been postponed in accordance with
applicable City Council policy or State Statutes. These assessments in the amount
of $335,617 are shown as other special assessments receivable of the debt service
funds as of December 31. 1988. These assessments will become collectible when the
conditions set forth by Council policy or in the State Statutes occur. It is
impossible to determine when these conditions will occur.
These assessments receivable are fully offset by deferred revenue.
Note 6 - Due from Other Governmental Units
The amounts due from other governmental units at December 31, 1988 are composed of
the following:
General Fund
Anoka County - court fines
$ 3,895
Debt service funds
Anoka County share of costs
$258,017
Capital projects funds
Anoka County share of costs
City of Ham Lake share of costs
$380,580
115,160
$495,740
$757,652
18
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 7 - Proprietary Fund Types Property and Equipment
A summary of proprietary fund types property and equipment at December 31, 1988
follows:
Furniture and equipment
Machinery
Collection and distribution systems
Water Sewer Total
$ 6,355 $ 7,140 $ 13,495
524,515 524,515
4,843,721 9,105,859 13,949,580
$5,374,591 $9,112,999 $14,487,590
(352,988) (1,040,988) (1,393,976)
$5,021,603 $8,072,011 $13,093,614
Less accumulated depreciation
Note 8 - Changes in General Fixed Assets
A summary of changes in general fixed assets during the year follows:
Land and improvements
Buildings and improvements
Furniture and equipment
Machinery and automotive
equipment
Balance Balance
January 1 Additions Disposals December 31
$ 419,983 $102,724 $ 522,707
581,838 581,838
101,070 743 101,813
852,359 113,507 965,866
$1,955,250 $216,974 $ -0- $2,172,224
Note 9 - Bonds Payable
The following is a summary of bond transactions of the City for the year ended
December 31, 1988:
Type of Bond
Outstanding
January 1
Outstanding
Redeemed December 31
Issued
G.O. Improvement Bond of 1978
Certificates of Indebtedness
State Aid Street Bonds
G.O. Tax Increment Bonds
G.O. Improvement (special
assessment) Bonds
$ 105,000
312,000
360000 $ 500,000
1,270,000
$ 55,000
79,000
50,000
$ 50,000
23 3,000
810,000
1,270,000
19,587,800 5,800,000
878,700
24,509,100
$21,634,800 $6,300,000 $1,062,700 $26,872,100
19
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 9 - Bonds Payable (Continued)
Bonds payable at December 31, 1988 are comprised of the following individual
issues:
G.O. Improvement Bonds of 1978
$430,000 Improvement Bonds of 1978 (11/1/78) due
February 1. 1989; interest at 5.60%
$
50,000
Certificates of Indebtedness
$100,000 Certificates of Indebtedness (11/1/85) due in annual
installments of $20,000 through May 1, 1990; interest at 7.50% $
40,000
$95,000 Certificates of Indebtedness (6/1/86) due in annual
installments of $19,000 through June 1, 1991; interest
at 7.20% to 7.60%
57,000
$170,000 Certificates of Indebtedness (2/1/87) due in annual
installments of $34,000 through February 1, 1992;
interest at 5.95% to 6.20%
136,000
$ 233,000
State Aid Street Bonds
$510,000 State Aid Street Bonds (9/1/84) due in annual
installments of $50,000/$60,000 through September 1, 1994;
interest at 7.75% to 9.00%
$ 310,000
$500,000 State Aid Street Bonds (8/1/88) due in annual
installments of $50,000 per year through August 1, 1998;
interest at 5.60% to 6.80%
500,000
$ 810,000
Tax Increment Bonds
$1,065,000 Tax Increment Bonds of 1987A (5/1/87) due in
varying annual installments through August 1, 2005; interest
at 8.25% to 9.90%
$ 1,065,000
$205,000 Tax Increment Bonds of 1987B (12/1/87) due
December 1, 1990; interest at 8.10%
205.000
$ 1,270,000
G.O. Improvement (special assessment) Bonds
$1,635,000 General Obligation Improvement Bonds of 1976 (8/1/76)
due in varying annual installments through February 1, 1997;
interest at 6.40% to 6,80%
$
950,000
$56,000 General Obligation Improvement Bonds of 1976B (11/1/76)
due in annual installments of $2,800 through November 1, 1996:
interest at 6.25% to 6.75%
22,400
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 9 - Bonds Payable (Continued)
G.O. Improvement (special assessments) Bonds (Continued)
$1,215,0000 General Obligation Improvement Bonds of 1977A (3/1/77)
due in varying annual installments through January 1, 2006;
interest at 5.00%
$780,000 General Obligation Improvement Bonds of 1977B (10/1/77)
due in varying annual installments through February 1, 1998;
interest at 5.25% to 5.50%
$270,000 General Obligation Improvement Bonds of 1978 (11/1/78)
due in varying annual installments through February 1, 1999;
interest at 5.50% to 6.00%
$270,000 General Obligation Improvement Bonds of 1979 (11/1/79)
due in varying annual installments through February 1, 1995;
interest at 6.50%
$430,000 General Obligation Improvement Bonds of 1980A (6/1/80)
due in varying annual installments through February 1, 1991;
interest at 6.70% to 6.90%
$98,000 General Obligation Bonds of 1980B (8/1/80) due in annual
installments of $4,900 through February 1, 2001;
interest at 7.00%
$4,365,000 General Obligation Improvement Bonds of 1980C (10/1/80)
due in varying annual installments through February 1, 1990,
interest at 8.50%
$300,000 General Obligation Improvement Bonds of 1985A (8/1/85)
due in varying annual installments through February 1, 2000;
interest at 8.86% to 9.60%
$2,350,000 General Obligation Improvement Bonds of 1985B (8/1/85)
due in varying annual installments through August 1, 2000;
interest at 8.13% to 9.00%
$1,795,000 General Obligation Improvement Bonds of 1986A (7/1/86)
due in varying annual installments through August 1, 2001;
interest at 5.75% to 7.90%
$180,000 General Obligation Refunding Improvement Bonds of 1986A
(8/1/86) due in annual installments of $36,000 through
August 1, 1991; interest at 6.75% - 7.25%
$2,600,000 General Obligation Improvement Bonds of 1986B (10/1/86)
due in varying annual installments through October 1, 1996;
interest at 5.20% - 6.30%
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$
940,000
500,000
185,000
160,000
175,000
63,700
360,000
255,000
2,115,000
1,645,000
108,000
2.195,000
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 9 - Bonds Payable (Continued)
G.O. Improvement (special assessments) Bonds (Continued)
$2,485,000 General Obligation Improvement Refunding Bonds of
1986C (8/1/86) due in varying annual installments through
August 1, 2002; interest at 6.00% - 7.40%
$ 2,485,000
$5,000,000 General Obligation Improvement Bonds of 1987A (8/1/87)
due August 1, 1990; interest at 5.25%
5,000,000
$1,550,000 General Obligation Improvement Bonds of 1987B (12/1/87)
due December 1, 1990; interest at 6.00%
1,550,000
$5,800,000 General Obligation Improvement Bonds of 1988 (8/1/88)
due August 1, 1991; interest at 6.00%
5,800,000
$24,509,100
Total all bonds
$26,872,100
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The annual requirements to amortize all debt outstanding as of December 31, 1988, ~
including interest payments of $8,679,821 are as follows:
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$9,796,336 is available in the debt service funds to service the general obligation
bonds. ~
There are a number of limitations and restrictions contained in the various bond
indentures. The City is in compliance with all significant limitations and
restrictions.
G.O.
G.O. Certificates Improvement
Improvement of State Aid G.O. Tax (special
1978 Indebtedness Street Increment as ses smen t)
1989 $51,400 $ 86,018 $ 157,475 $ 119,236 $ 2,480,976
1990 81,099 150,800 339,235 9,027,096
1991 56,867 143,900 134,938 7,925,605
1992 35,054 136,800 136,962 1,639,137
1993 129,500 138,463 1,598,981
1994 - 1998 365,750 672,158 6,617,420
1999 - 2005 943,707 2,383,344
$51,400 $259,038 $1,084,225 $2,484,699 $31,672,559
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CITY OF AlIDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 10 - Long-term Payables
Included in the General Long-term Debt Account Group are the following long-term
payables:
1, Special assessments on City property of $234,495 are payable in varying
amounts at annual interest rates of 6.25% to 10.7% through 2001.
2. Installment contracts of $20,012 for equipment purchases with interest
at varying amounts.
Principal Interest
1989 $ 4,745 $2,528
1990 5,475 1,798
1991 6,288 926
1992 3,504 195
$20,012 $5,447
Total
$ 7,273
7,273
7,214
3,699
$25,459
3, Payable of $10,904 to the Metropolitan Waste Control Commission, with
interest at 5.36% per annum.
Principal
Interest
Total
1989
1990
1991
$ 3,742
3,943
2,724
$ 558
357
148
$ 4,300
4,300
2,872
$10,409
$ 1, 063
$11,472
Note 11 - Changes in General Long-term Debt
Changes in General Long-term Debt during the year were:
Balance Balance
January 1 Additions Deletions December 31
Bonds and certificate of
indebtedness $21,634,800 $6,300,000 $1,062,700 $26,872,100
Assessments on City property 81,589 161,795 8,889 234,495
Contracts payable
Equipment purchases 10,267 13,724 3,979 20,012
Due to Metropolitan Waste
Control Commission 13.959 3,550 10,409
Accrued vacation pay
Governmental funds 31,640 9,557 41,197
$21,772,255 $6,485 ,076 $1, 07 9,118 $27,178,213
23
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 12 - Defined Benefit Pension Plans - Statewide
A. Plan Description
All full-time and certain part-time employees of the City of Andover are
covered by defined benefit pension plans administered by the Public Employees
Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund
(PEPFF) which are cost-sharing multiple-employer public employee retirement
funds. PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated members are covered by Social Security and Basic members are not.
p~l new members must participate in the Coordinated Plan. All police officers,
fire fighters and peace officers who qualify for membership by statute are
covered by the PEPFF. The payroll for employees covered by PERA plans for the
year ended December 31, 1988, was $437,014; the City's total payroll was
$501,832. The City has no employees as members of the PEPFF.
PERA provides retirement benefits as well as disability benefits to members,
and benefits to survivors upon death of eligible members. Benefits are
established by State Statute, and vest after five years of credited service.
The defined retirement benefits are based on member's average salary for any
five successive years of allowable service, age, and years of credit at
termination of service. The annuity accrual rates for a Basic member is 2
percent of average salary for each of the first 10 years of service and 2.5
percent of each remaining year. For a Coordinated member, the annuity accrual
is 1 percent of average salary for each of the first 10 years and 1.5 percent
for each remaining year. PERF members are eligible for a full annuity when age
plus years of service equal 90.
There are different types of annuities available to members upon retirement. A
normal annuity is a lifetime annuity that ceases upon the death of the
retiree. No survivor annuity is payable. There are also various types of
joint and survivor annuity options available which will reduce the monthly
normal annuity amount, because the annuity is payable over joint lives.
Members may also leave their contributions in the fund upon termination of
public service, in order to qualify for a deferred annuity at retirement age.
Refunds of contributions are available at any time to members who leave public
service, but before retirement benefits begin.
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 12 - Deiined Benefit Pension Plans - Statewide - (Continued)
B. Contributions Required and Contributions Made
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. The City makes annual contributions to the pension plans equal
to the amount required by state statutes. Minnesota Statutes Chapter 356.215,
Subd. 4(g) provides the formula for determining the date of full funding for
the PERF and the PEPFF. Those dates are 2010 and 2018 respectively. As part
or the annual actuarial valuation, PERA' s actuary determines the sufficiency of
the statutory contribution rates towards meeting the required full funding
deadline. The actuary compares the actual contribution rate to a "required"
contribution rate. Current statutory contribution rates and actuarially
required contribution rates for the plans are as follows:
Statutory rates Required
Employees Employer rates
PERF
Basic Plan 8.00% 10.50% 9.46%
Coordinated Plan 4.00% 4.25% 5.11%
PEPFF 8.00% 12.00% 15.97%
Total contributions made by the City during the year were:
PERF
Basic Plan
Coordinated Plan
Amounts
Employees Employer
Percentage of
covered payroll
Employees Employer
$ -0-
17 ,481
$ -0-
18,573
-0-
4.00
-0-
4.25
The City's contribution for the year to the PERF represented 0.02 percent of
total contributions required of all participating entities.
C. Funding Status and Progress
1.
Pension Benefit Obligation
The "pension benefit obligation" is a standardized disclosure measure of
the present value of pension benefits, adjusted for the effects of
projected salary increases and step-rate benefits, estimated to be payable
in the future as a result of employee service to date. The measure, which
is the actuarial present value of credited projected benefits, is intended
to help users assess PERA's funding status on a going-concern basis,
assess progress made in accumulating sufficient assets to pay benefits
when due, and make comparisons among Public Employees Retirement Systems
and employers. PERA does not make separate measurements of assets and
pension benefit obligation for individual employers.
25
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 12 - Defined Benefit Pension Plans - Statewide - (Continued)
C. Funding Status and Progress (Continued)
1.
Pension Benefit Obligation (Continued)
The pension benefit obligations of the PERA as of June 30, 1988, were as
follows:
PERF PEPFF
(in thousands)
Total pension benefit obligations $3,334,423 $ 512,921
Net assets available for benefits,
at market 2,749,289 584,871
Unfunded pension benefit obligation $ 585,134 $ (71,950)
benefit obligation is
Net assets available
30, 1988.
based on an actuarial
to pay pension
The measurement of the pension
valuation as of June 30, 1988.
benefits were valued as of June
2.
Change in Actuarial Methods
Prior to fiscal year 1988, the mortality table used was the UP-1984 Unisex
set forward one year for males and set back four years for females. For
fiscal year 1988, the PERA Board of trustees approved the use of the 1971
Group Annuity Mortality Table projected to 1984 for males and females.
The change was made in order to reduce, if not eliminate, the series of
large, annually recurring mortality losses that have been realized in the
last four years. With the adoption of the new mortality table, the
projected benefit obligation increased $179,670,000 in the Public
Employees Retirement fund and $18,805,000 in the Public Employees Police
and Fire Fund.
D. Ten-year historical trend information is presented in PERA's Comprehensive
Annual Financial Report for the year ended June 30, 1988. This information is
useful in assessing the pension plan's accumulation of sufficient assets to pay
pension benefits as they become due.
E. Related Party Investments
During fiscal year 1988 and as of June 30, 1988, PERA held no securities issued
by the City or other related parties.
F. The City's contributions to the Federal Social Security (FICA) and Medicare
plans for the year were $33,609.
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 13 - Fund Equity
The December 31, 1988 reservations of fund equity are:
Governmental Fund Types
Debt service funds
Debt service
Capital project funds
Encumbrances
$ 9,796,336
227,651
Total
$10,023,987
Proprietary Fund Type
Enterprise funds - Water Fund - equipment
$
7,729
Note 14 - Segment Information for Enterprise Funds
Segment information for the City's two enterprise funds for the year ended
December 31, 1988 is as follows:
Water Sewer Total
Operating revenue $ 171, 897 $ 164,512 $ 336,409
Depreciation 110,385 168,083 278,468
Operating loss (41,062) (161,225) (202,287)
Operating transfers - Out (3,648) (4,154) (7,802)
Net loss (42,172) (164,190) (206,362)
Property, plant and equipment
Additions 1,359.789 1,508,826 2,868,615
Working capital 93,229 73,854 167,083
Contributions of plant and equipment 1,357,802 1,508,826 2,866,628
Total assets 5,120,292 8,165,599 13,285.891
Equity
Contributed 5,018,157 8.069,015 13.087,172
Retained earnings
Reserved 7,729 7,729
Unreserved 88,946 76,850 165,796
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CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1988
Note 15 - Defined Contribution Pension Plan - Firefighters
All firefighters are members of the Andover Firefighter's Relief Association. The
Association provides pension, disability and funeral benefits to its members.
Payments to members are for their individual account balances.
The City's contribution under the plan is $250 per member per year. During 1988,
the City contributed $26,180 to the Association, including #20,930 of State
insurance premium tax.
This disclosure is not in accordance with the Governmental Accounting Standards
Board Statement No.5, as the required information is not available.
Note 16 - Contingent Liabilities
The City participated in federally assisted grant programs. principal of which were
the General Revenue Sharing and Community Development Block Grant programs. These
programs are subject to program compliance audits by the grantors or their
representatives. The audits of these programs for 1988 have not been conducted.
Accordingly, the City's compliance with applicable grant requirements will be
established at some future date. The amount, if any, of expenditures which may be
disallowed by the granting agencies cannot be determined at this time although the
City expects such amounts, if any, to be immaterial.
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CITY OF ANDOVER, MINNESOTA
GENERAL FUND
BALANCE SHEETS
DECEMBER 31, 1988 AND 1987
ASSETS
Cash and temporary investments
Accrued interest receivable
Taxes receivable
Unremitted
Delinquent
Accounts receivable
Due from other governmental units
Total assets
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable
Accrued expenses
Due to other governmental units
Deferred revenue
Total liabilities
Fund balance
Unreserved
Designated for subsequent year's a~penditures
Undesignated
Total liabilities and fund balance
29
1988 1987
$803,843 $795,896
3,034 3,567
15,196 89,024
27,699 25,055
8,766 758
3,895 2,945
$862,433 $917,245
$ 80,811
17,656
4,267
27,699
$130,433
$ 42,900
689,100
$732,000
$862,433
$ 59,372
16.600
6,538
25,055
$107,565
$ 14,838
794,842
$809,680
$917,245
CITY OF ANDOVER, MINNESOTA
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Budget Actual
1987
Actual
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GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1988
(with comparative actual amounts for the year ended December 31, 1987)
Revenue
Property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Other
Total revenue
Other sources
Transfers from other funds
Total revenue and other sources
Expenditures
General government
Public safety
Public works
Sanitation
Parks and recreation
Unallocated
Total expenditures
Other uses
Transfers to other funds
Total expenditures and other uses
Increase (decrease) in
fund balance
Fund balance January 1
Fund balance December 31
$ 841,000 $ 713,219 $ 601,682
202,110 236,555 268,983
558,012 559,246 526,058
38,670 31,404 46 , 821
14,000 45,049 33,496
74,100 84,680 143,543
$1,727,892 $1,670,153 $1,620,583
76,900 94,738 107 ,992
$1,804,792 $1,764,891 $1,728,575
$ 475,726 $ 521,775 $ 469,866
635,425 496.710 413,466
315,610 333,978 234,814
26,196 12,030 10,124
182,451 240,574 212,863
74,107 136,209 104,272
$1,709,515 $1,741,276 $1,445,405
95 ,277 101,295 102,361
$1,804,792 $1,842,571 $1,547,766
$ -0- $ (77,680) $ 180,809
809,680 809,680 628,871
$ 809,680 $ 732,000 $ 809,680
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CITY OF ANDOVER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUE - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31. 1988
(with comparative actual amounts for the year ended December
Property taxes
General property taxes
Penalties and interest
Licenses and permits
Business
Non-business
Intergovernmental
Local governmental aid
State credits
CDBG
State highway aid
Insurance premium tax
Charges for services
General government
Utility funds
Fines and forfeits
Other
Interest
Sale of land
Reimbursement from improvement projects
Miscellaneous
Refunds and reimbursements
Total revenue
Other sources - Transfers from other funds
Revenue Sharing Fund
1987 Equipment Fund
Park Fund
Administrative Trust Fund
Total revenue and other sources
Budget
$ 810,000
31,000
$ 841,000
$ 14,400
187,710
$ 202,110
$ 230,352
290,400
22,260
15 , 000
$ 558,012
$ 32,170 $
6,500
$ 38,670 $
$ 14,000 $
$ 20,000 $
30,000
19,100
2,000
3,000
$ 74,100 $
$1,727,892
$ 76,900
$ 76,900
$1,804,792
31
1988
Actual
$ 686,469
26,750
$ 713,219
$ 17,030
219,525
$ 236,555
$ 230,352
251,104
34,600
22.260
20,930
$ 559.246
27 ,309
4,095
31,404
45,049
37,233
22,397
4,489
6,494
13,967
84,680
$1,670,153
$ 40,446
54,292
$ 94,738
$1,764,891
31, 1987)
1987
Actual
$ 582,141
19,541
$ 601,682
$ 14,414
254,569
$ 268,983
$ 230,355
235,668
18,474
22,260
19,301
$ 526,058
$ 42,914
3,907
$ 46,821
$ 33,496
$ 37,936
49,835
21,263
5 , 06 8
29,441
$ 143,543
$1,620,583
$ 796
45 ,842
27,209
34,145
$ 107,992
$1,728,575
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CITY OF ANDOVER, MINNESOTA
GENERAL FUND ~
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1988
(with comparative actual amounts for the year ended December 31, 1987) C
1988 1987 C
Budget Actual Actual
General government m
Counc il
Personal services $ 22,121 $ 17,252 $ 16,398
Supplies 200 739 26 m
Other services and charges 8,600 4,958 7,411
$ 30,921 $ 22,949 $ 23,835
Mayor C
Personal services $ 3,900 $ 3,870 $ 3,857
Other services and charges 400 2,273 140
$ 4,300 $ 6,143 $ 3,997 C
Committees
Personal services $ 500 ~
Operating expenses 1,050 $ 77 $ 181
$ 1,550 $ 77 $ 181
Elections C
Personal services $ 7,800 $ 7,411
Supplies 1,000 507
Other services and charges 200 156 ~
Capital outlay 5,000 ;
$ 14,000 $ 8,074 $ -0- I
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Personal services $ 1,400 $ 725 $ 996 I
Operating expenses 4,200 5,541 3 . 43 0
$ 5,600 $ 6,266 $ 4,426 C
,
Administration
Personal services $ 56,163 $ 53,834 $ 65,583 C
Supplies 1,500 2,489 3.455
Other services and charges 2,490 3,978 2,312
Capital outlay 1,800 1,560 1,815
$ 61,953 $ 61, 86 1 $ 73,165 C
Financial administration
Personal services $ 7. 837 $ 9,092 $ 10,763 C
Supplies 100 134 80
Other services and charges 200 115 82
Capital outlay 500 260 107 C
$ 8,637 $ 9,601 $ 11,032
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GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED DECEMBER 31, 1988
(with comparative actual amounts for the year ended December 31, 1987)
33
CITY OF ANDOVER, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED DECEMBER 31, 1988
(with comparative actual amounts for the year ended December 31, 1987)
1988 1987
Budget Actual Actual
General government (continued)
Buildings (continued)
Senior citizen center
Personal services
Supplies
Other services and charges
Capital outlay
$ 1,400 $ 1,748 $ 697
2,700 1,392 1,160
5,605 4,049 4,905
600
$ 10,305 $ 7,189 $ 6,762
$ 300 $ 628 $ 31
801
1, 700 320 1,115
$ 2,801 $ 948 $ 1,146
$ 91,213 $124,491 $145,982
$ 58,232 $ 60,334 $ 45,091
3 ,500 2,912 3,134
5,642 2,244 4,801
1,500 6,455 2,100
$ 68,874 $ 71,945 $ 55,126
$ 2,400 $ 3,087 $ 2,869
$475,726 $521,775 $469,866
Storage building
Supplies
Other services and charges
Capital outlay
Total buildings
Engineering - staff
Personal services
Supplies
Other services and charges
Capital outlay
Engineering - consultant
Other services and charges
Total general government
Public safety
Police protection
Other services and charges
Capital outlay
$321,737 $206,846 $192,331
100 199
$321,837 $207,045 $192,331
$ 53,505 $ 58,052 $ 40,562
11,819 13,656 8,194
43 , 111 12,564 12,370
25,000 26,180 24,551
30,175 44,260 21,156 .
$163,610 $154,712 $106,833
Fire protection
Personal services
Supplies
Other services and charges
Relief Association
Capital outlay
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I GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (CONTINUED)
I YEAR ENDED DECEMBER 31, 1988
(with comparative actual amounts for the year ended December 31, 1987)
1988 1987
I Budget Actual Actual
Public safety (continued)
Rescue service
I Personal services $ 11,505 $ 13 ,543 $ 12,758
Supplies 2,861 1,833 1,807
Other services and charges 12,514 4,488 3,145
Capital outlay 1, 135 1,334 1,148
I $ 28,015 $ 21,198 $ 18,858
Protective inspection
Personal services $ 84,995 $ 76,841 $ 64,474
I Supplies 5,500 6,751 4,047
Other services and charges 15,134 14,426 15,072
Capital outlay 4,467 4,133 2,990
I Other 1,000 969
$111,096 $103,120 $ 86,583
Civil defense
Other services and charges $ 2,367 $ 1,105 $ 740
I Animal control
Personal services $ 88
I Supplies $ 100
Other services and charges 8,400 $ 9,530 8,033
$ 8,500 $ 9 , 53 0 $ 8,121
I Total public safety $635,425 $496,710 $413,466
Public works
I Streets and highways
Personal services $ 47,690 $ 52,428 $ 47,304
Supplies 22,075 17,386 15,033
I Other services and charges 20,764 9,727 10,291
Capital outlay 99 ,000 88,661 79,027
$189,529 $168,202 $151,655
Snow and ice removal
I Personal services $ 38,851 $ 30,191 $ 21,099
Supplies 28,300 35,987 21,095
Other services and charges 18,364 5,706 3,847
I Capital outlay 9,000 56,989 15,250
$ 94,515 $128,873 $ 61,291
Street signs
I Personal services $ 12,391 $ 14,055 $ 9,354
Supplies 3,750 3,656 2,733
Other services and charges 225 900 128
Capital outlay 6,000 3,763 3,659
I $ 22,366 $ 22,374 $ 15,874
Street lighting
Other services and charges $ 9,200 $ 14,529 $ 5,994
I Total public works $315,610 $333,978 $234,814
I 35
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CITY OF ANDOVER, MINNESOTA
GENERAL FUND rJ
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL ( CONT lNUED )
YEAR ENDED DECEMBER 31, 1988
(with comparative actual amounts for the year ended December 31, 198]) C
1988 1987
Budget Actual Actual C
Sanitation
Storm sewers
Personal services $ 16,830 $ 7,116 $ 5,609
Supplies 4,000 897 1,301 m
Other services and charges 2,629 364 759
Capital outlay 1, 000 59
$ 24,459 $ 8,536 $ 7,669 C
Trees and weed control
Personal services $ 665 $ 3,082 $ 2,186
Supplies 570 101 158 C
Other services and charges 302 25 111
Capital outlay 200 286
$ 1,737 $ 3,494 $ 2,455
Total sanitation $ 26,196 $ 12,030 $ 10,124 C
Parks and recreation C
Personal services $ 47,821 $ 65 , 93 9 $ 60,292
Supplies 20,900 19.300 17,536
Other services and charges 9,567 7 , 43 1 2,462 C
Community education programs 28,160 29 , 120 27,340
Assessments 12,853 12,854 12,854
Capital outlay 63,150 105,930 92,379
$ 182,451 $ 240,574 $ 212,863 ~
Unallocated
CDBG $ 11,178 $ 25 ,546
Metropolitan Waste Control Commission $ 4,300 4,300 4,300 C
Insurance 20,850 74,997 63,131
LRRWMO 10,507 1,703
Sidewalk 12,910
Improvement proj ects 2,500 6,549 6,000 C
Site Q 30,000 9,714
Miscellaneous 1,950 7,358 5,295
Escrow refund 7,500 C
Tax increment financing 4,000
$ 74,107 $ 136,209 $ 104,272
Total expenditures $1,709,515 $1,741,276 $1,445,405 C
Other uses
Transfers to other funds C
Certificates of Indebtedness Fund $ 95,277 $ 89,663 $ 91,598
LRRWMO 10,675
1986 Equipment 88 0
Unfinanced Capital Projects Fund 11,632
$ 95,277 $ 101,295 $ 102,361
Total expenditures and other uses $1,804,792 $1,842,571 $1,547,766 ~
36 C
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CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1988
(with comparative totals for December 31, 1987)
LRRWMO
Drainage
and
Mapping
Totals
1988 1987
ASSETS
Cash and temporary investments $ 4,185 $50,893 $55,078 $32,684
Accrued interest receivable 26 201 227 186
Special assessment receivable
Unremitted 1,313
Delinquent 343
Total assets $ 4,211 $51,094 $55,305 $34,526
LIABILITIES AND FUND BALANCE
Liabilities
Deferred revenue
$
343
Fund balance
Unreserved-Undesignated
$ 4,211
$51,094
$55,305
34,183
Total liabilities and
fund balance
$ 4,211
$51,094
$55,305
$34,526
37
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
YEAR ENDED DECEMBER 31, 1988
(with comparative totals for year ended December 31, 1987)
Revenue
Federal grant
Special assessments
Interest
Total revenue
Drainage
and Totals
LR~MO Mapping 1988 1987
$ 780
$ 352 $ 352 1,401
$ 280 2,158 2,438 1,880
$ 280 $ 2,510 $ 2,790 $ 4,061
Other sources
Transfers from other funds
18,332 18,332 10,825
$20,842 $21,122 $14,886
$ 4,165
$ 796
$ -0- $ -0- $ 4,961
$20,842 $21,122 $ 9,925
30,252 34,183 24,258
$51, 094 $55,305 $34,183
Total revenue and
other sources
$
280
Expenditures
Other services and charges
Other uses
Transfer to General Fund
Total expenditures and
other uses
$ -0-
Increase in fund balance
$ 280
Fund balance January 1
3,931
Fund balance December 31
$ 4,211
38
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CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1988
(with comparative totals for December 31, 1987)
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ 9,031 $ 3,512 $ 12,543 $ 144
Deferred revenue $ 1,840 11,963 11,460,252 11,474.055 7,829,838
Total liabilities $ 1, 840 $ 20.994 $11,463,764 $11,486,598 $ 7 , 829 , 9 82
Fund balance -
Reserved for
debt service 152,783 $255 121,626 9,521,672 9,796,336 7,344,381
Total liabilities
and fund
balance $154,623 $255 $142,620 $20,985,436 $21,282,934 $15,174,363
39
$ 89,663
7,642
$ 97,305
$ 65,806 $ 97,305
$ 55,000 $ 79,000
4,326 18,305
100
$ 59,426 $ 97,305
CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
YEAR ENDED DECEMBER 31, 1988.
(with comparative totals for year ended December 31, 1987)
1978 G.O.
Bonds
Revenue
Property taxes
State aid
State credits
Special assessments
Interest
Other
$ 40,689
17,282
7,835
Total revenue
$ 65,806
Other sources
Transfers from other funds
General Fund
Debt service funds
Capital project funds
Enterprise funds
Total other sources
Total revenue and other sourceS
Expend i tures
Redemption of bonds
Interest
Other
Total expenditures
Other uses
Transfers to other funds
Debt service funds
Capital projects funds
Total other uses
Total expenditures and other uses
$ 59,426
$ 6,380
Increase (decrease) in fund balance
Fund balance January 1
As previously reported
Adjustment for change in accounting for
special assessment funds
As adjusted
$146,403
$146,403
$152,783
Fund balance December 31
40
Certificates
of Indebtedness
$ 97,305
$ -0-
$ -0-
$ -0-
$ -0-
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I Tax Special
State Aid Increment Assessment Totals
Bonds Bonds Bonds 1988 1987
I (Restated)
$ 49,384 $ $ 45,681
90,073
I $ 79,725 79,725 83,624
5,839 23,121 18,501
$3,102,549 3,102,549 3,449,762
561 13,968 521,670 544,034 340,138
I 3,734
$ 80,286 $ 69,191 $3,624,219 $3,839,502 $ 3,941,440
I $ 89,663 $ 91,598
I $ 962,196 962,196 65,000
$ 17,000 678,896 695,896 167,167
7,642 86,007
$ 17,000 $1, 641, 092 $1,755,397 $ 409,772
I $ 80,286 $ 86,191 $5,265,311 $5,594,899 $ 4,351,212
I $ 50,000 $ 878,700 $1,062,700 $ 4,148,700
29,725 $119,236 1,233,622 1,405,214 1, 150,504
439 5,875 6,414 19,957
I $ 80,164 $119,236 $2,118,197 $2,474,328 $ 5,319,161
I $ 962,196 $ 962,196 $ 65,000
. 7,628 7,628 181,103
I $ 969,824 $ 969,824 $ 246,103
$ 80,164 $119,236 $3,088,021 $3,444,152 $ 5,565,264
I $ 122 $ (3 3 ,045) $2,177,290 $2,150,747 $(1,214,052)
I $ 133 $154,671 $ 301,207 $ 133,716
$7,344,382 7,344,382 8,725,925
J $ 133 $154,671 $7,344,382 $7,645,589 $ 8,859,641
j I $ 255 $121, 626 $9,521,672 $9,796,336 $ 7,645,589
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CITY OF ANDOVER, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1988
(with comparative totals for December 31, 1987)
AS SETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Unremitted taxes receivable
Deferred special assessments receivable
Due from other governmental units
Total assets
Liabilities
Cash deficit
Accounts payable
Contracts payable
Deposit payable
Deferred revenue
Total liabilities
Fund balance
Reserved for debt service
Reserved for encumbrances
Unreserved - Undesignated
LIABILITIES AND FUND BALANCE
Total liabilities and fund balance
42
Equipment
$ 21,684
135
$ 21,819
$ 21,819
$ 21,819
$ 21,819
1987
Equipment
$ 22,918
143
$ 23,061
$ 6,000
$ 6,000
$ 17,061
$ 17 ,061
$ 23, 061
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Tax State Special Totals
Increment Park Aid Assessment 1988 1987
(Rest ated)
$104,797 $ 72,423 $250,215 $1,655.676 $2,127,713 $3 , 983 , 753
642 686 2,478 3,645 7,729 23 , 43 7
100 100 236,000
1,161
537,475 537,475
115,160 380.580 495,740 371,280
$105,439 $ 73,109 $367,853 $2,577,476 $3,168,757 $4,615,631
$ 135,680
$ 9, 271 $ 52,956 $ 62,227 104,821
8,7 60 326,021 334,781 640,138
6,000
537,475 537,475
$ 18,031 $ 916,452 $ 940,483 $ 880,639
$ 17,000
$ 227,651 $ 227,651 2,050,086
$105,439 $ 73.109 $349,822 1,433,373 2,000,623 1,667,906
$105,439 $ 73,109 $349,822 $1,661,024 $2,228,274 $3,734,992
$105,439 $ 73,109 $367,853 $2,577,476 $3,168,757 $4,615,631
43
CITY OF ANDOVER, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
YEAR ENDED DECEMBER 31, 1988
(with comparative totals for year ended December 31, 1987)
Revenue
Property taxes
Anoka County
State aid
City of Ham Lake
Park dedication fees
Interest
Special assessments
Sale of land
Other
Total revenue
Other sources
Bond proceeds
Transfers from other funds
General Fund
Debt service funds
Capital projects funds
Total other sources
Total revenue and other sources
Expenditures
Capital outlay
Reimbursements to other funds
Interest
Total expenditures
Other uses - Transfers to other funds
General Fund
Special revenue funds
Debt service funds
Capital projects funds
Administrative Trust Fund
Total other uses
Total expenditures and other uses
Increase (decrease) in fund balance
Fund balance January 1
As previously reported
Adjustment for change in accounting for
special assessment funds
As adjusted
Fund balance December 31
44
Equipment
$ 1,441
$ 1,441
$ 1, 441
$ 1,441
$ 20,378
$ 20,378
$ 21,819
1987
Equipment
$ 1,335
$ 1,335
$ 1,335
$ 1,335
$ 15,726
$ 15,726
$ 17,061
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I Tax Sta te Special
Increment Park Aid Assessment 1988 1987
(Restated)
I $ 2,030
$ 9,300 $ 9,300 371,280
I $ 28,864 28,864 221,384
115,160 115,160
$ 51,065 51,065 26,265
$ 3,641 6,306 27,321 180,641 220,685 246,961
I 14,885 9,823 24,708
70,081 70,081
10,980
I $ 73,722 $ 57,371 $186,230 $ 199,764 $ 519,863 $ 878,900
I $494,750 $ 5,724,600 $ 6,219,350 $ 7,969,126
11,632 11,632 88
7,628 7,628 181,103
I 94,325 94,325 1,352,446
$494,750 $ 5 , 838 , 185 $ 6,332,935 $ 9,502,763
I $ 73,722 $ 57,371 $680,980 $ 6,037,949 $ 6,852,798 $10.381,663
$ 45,774 $ 1,915 $491,474 $ 6,761,434 $ 7,300,597 $ 6,889,372
I 11,000
3,146 27 , 841 30,987 14,079
$ 48,920 $ 1,915 $491,474 $ 6,789,275 $ 7,331,584 $ 6,914,451
I $ 40, 446 $ 40,446 $ 73,051
I $ 18,332 18,332 150
$ 24,550 671,346 695,896 167,167
$ 1,550 92,775 94,325 1,352,446
178,933 178,933 111,442
I $ 24,550 $ 40,446 $ 1,550 $ 961,386 $ 1, 027 , 93 2 $ 1,704,256
$ 73,470 $ 42,361 $493,024 $ 7,750,661 $ 8,359,516 $ 8,618,707
I $ 252 $ 15,010 $187,956 $(1,712,712) $(1,506,718) $ 1,762,956
I I $105,187 $ 58,099 $161,866 $ -0- $ 361,256 $ 113,596
3,373,736 3,373.736 1,858,440
1 I $105,187 $ 58,099 $161,866 $ 3,373,736 $ 3,734,992 $ 1,972,036
$105,439 $ 73,109 $349,822 $ 1,661,024 $ 2,228,274 $ 3,734,992
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Sewer
1988
1987
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CITY OF ANDOVER, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1988
comparative totals for December 31,
1987)
(with
Totals
ASSETS
Current assets
Cash and temporary investments $ 68,733 $ 28, 170 $ 96,903 $ 21,894
Accrued interest receivable 381 178 559 129
Accounts receivable 26,599 65,240 91,839 68,439
Due from other governmental units 7,398
Inventory 2,976 2,976 5,529
Total current assets $ 98,689 $ 93,588 $ 192,277 $ 103,389
Property and equipment
Furniture and equipment $ 6,355 $ 7,140 $ 13,495 $ 11,508
Machinery 524,515 524,515 524,515
Collection and distribution
systems 4,843,721 9 , 105 , 85 9 13,949,580 11,082,952
$5,374,591 $9,112,999 $14,487,590 $11,618,975
Less accumulated depreciation (352,988) (1,040,988) (1,393,976) (1,115,508)
Property and equipment-Net $5,021,603 $8,072,011 $13,093,614 $10,503,467
Total assets $5,120,292 $8,165.599 $13,285,891 $10,606,856
Total liabilities
and fund equity
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LIABILITIES AND FUND EQUITY
Current liabilities
Accounts payable
Due to other governmental units
Accrued expenses
Total current liabilities
Total fund equity
$ 3,716 $ 855 $ 4,571 $ 3,356
17,214 17,214
1,744 1.665 3,409 3,069
$ 5,460 $ 19,734 $ 25,194 $ 6,425
$5,018,157 $8,069,015 $13,087,172 $10,497,095
$ 7,729 $ 7,729 $ 7,219
88,946 $ 76, 850 165,796 96,117
$ 96,675 $ 76, 850 $ 173,525 $ 103,336
$5,114,832 $8,145,865 $13~260,697 $10,600,431
$5,120,292 $8,165,599 $13,285,891 $10,606,856
Fund equity
Contributed
Retained earnings
Reserved for equipment
Unreserved - Undesignated
46
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I CITY OF ANDOVER, MINNESOTA
I ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSE AND RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1988
I (with comparative totals for year ended December 31, 19 87)
Totals
Water Sewer 1988 1987
I Operating revenue
User charges $126,594 $ 157,640 $ 284,234 $ 205,344
Meters 26 , 825 26,825 26,420
I Permit fees 12,680 12,680 12,045
Penalties 3,791 4,149 7,940 4,662
Other 2,007 2,723 4,730 229
$171,897 $ 164,512 $ 336,409 $ 248,700
I Operating expense (excluding
depreciation)
Personal services $ 39,732 $ 21,973 $ 61,705 $ 57,306
I Supplies 14,519 3,187 17,706 11,693
Meters, etc. 20,923 20,923 21,479
Other services and charges 27 ,40 0 5,931 33,331 21,898
I Disposal charges 126,563 126,563 93,521
$102,574 $ 157,654 $ 260,228 $ 205 , 897
Operating income (loss)
before depreciation $ 69,323 $ 6,858 $ 76,181 $ 42,803
I Less depreciation
On assets acquired with own funds $ 863 $ 1,054 $ 1,917 $ 1,603
I On assets acquired from
contribu tions 109,522 167,029 276.551 212,930
$110,385 $ 168,083 $ 278,468 $ 214,533
I Operating loss $(41,062) $(161,225) $ (202, 287) $ (171,730)
Other income (expense)
I Interest income $ 2,538 $ 1,189 $ 3,727 $ 1,026
Interest expense (621)
$ 2,538 $ 1,189 $ 3,727 $ 405
I Net loss before
operating transfers $(38,524) $(160,036) $(198,560) $(171,325)
Operating transfers to other funds (3,648) (4,154) (7,802) (86,007)
I Net loss $(42,172) $(164,190) $(206,362) $(257,332)
I I Disposition of net loss
Net loss $(42.172) $ (164,190) $ (206.362) $(257,332)
Add credit from transfer of
I I depreciation to contributions
in aid to construction 109,522 167,029 276,551 212,930
Income (loss) transferred
II to retained earnings $ 67,350 $ 2,839 $ 70,189 $ (44.402)
1
J I Retained earnings January 1 29,325 7"4,011 103,336 147,738
~ I Retained earnings December 31 $ 96,675 $ 76,850 $ 173,525 $ 103,336
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CITY OF ANDOVER, MINNESOTA
ENTERPRI SE FUND S
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED DECEMBER 31, 1988
(with comparative totals for year ended December 31, 1987)
Totals
Water
Sewer
1988
Sources of working capital
Operations
Net loss $ (42,172) $ (164,190) $ (206,362)
Item not requiring working
capital - Depreciation 110,385 168,083 278,468
$ 68,213 $ 3,893 $ 72, 106
Decrease in other assets
Contribution of property
2,866,628
$2,938,734
1,508,826
$1,512,719
1,357,802
$1,426,015
Uses of working capital
Acquisition of property and
equipment
Decrease in deferred revenue
$1,359,789
$1,508,826
$2,868,615
$1,508,826
$2,868,615
$1,359,789
Increase (decrease) in
working capital
$
$
$
70,119
3,893
66,226
1987
$ (257,332)
214,533
$ (42,799)
18,647
3,014,978
$2,990,826
$3,016,165
18,835
$3,035,000
$ (44,174)
Elements of change in working capital
Cash and temporary investments $ 59,845 $ 15,164 $ 75,009 $ (44,299)
Accrued interest receivable 338 92 430 (735)
Accounts receivable 9,750 13,650 23 , 40 0 13,902
Due from other governmental units (7,398) (7,398) (8,306)
Special assessments receivable (4,148)
Inventory (2,553) (2,553 ) (10)
Accounts payable (1,020) (195) (1,215) (1,316)
Due to other governmental units (17,214) (17,214)
Accrued expenses (134) (206 ) (340 ) 738
Inc rease (decrease) in
working capital $ 66,226 $ 3,893 $ 70,119 $ (44,174)
48
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CITY OF ANDOVER, MINNESOTA
WATER FUND
BALANCE SHEETS
DECEMBER 31, 1988 AND 1987
1988
1987
AS SETS
Current assets
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Inventory
Total current assets
$ 68,733 $ 8.888
381 43
26,599 16,849
2,976 5,529
$ 98,689 $ 31, 3 09
$ 6,355 $ 4,368
524,515 524,515
4,843,721 3,485 ,919
$5,374,591 $4,014,802
(352,988) (242,603)
$5,021,603 $3,772,199
$5,120,292 $3,803,508
Property and equipment
Furniture and equipment
Machinery
Distribution system
Less accumulated depreciation
Property and equipment - Net
Total assets
LIABILITIES AND FUND EQUITY
Current liabilities
Accounts payable
Accrued expenses
Total current liabilities
$
$
3,716
1,744
5,460
$ 2,696
1,610
$ 4,306
Fund equity
Contributed
Retained earnings
Reserved for equipment
Unreserved - Undesignated
$5,018,157
$3,769,877
$ 7,729
88,946
$ 96,675
$5,114,832
$5,120,292
$ 7.219
22,106
$ 29,325
$3,799,202
$3,803,508
Total fund equity
Total liabilities and fund equity
49
CITY OF ANDOVER, MINNESOTA
WATER FUND
STATEMENTS OF REVENUE, EXPENSE AND RETAINED EilRNINGS
YEARS ENDED DECEMBER 31, 1988 AND 1987
Operating revenue
User charges
Meters
Permit fees
Penalties
Other
Operating expense (excluding depreciation)
Personal services
Supplies
Meters, etc.
Other services and charges
Operating income (loss) before depreciation
Less depreciation
On assets acquired with own funds
On assets acquired from contributions
Operating loss
Other income (expense)
Interest income
Interest expense
Net loss before operating transfers
Transfers to other funds
Debt service funds
Administrative Trust Fund
Net loss
Disposition of net loss
Net loss
Add credit from transfer of depreciation to
contributions in aid to construction
Income (loss) transferred to retained earnings
Retained earnings January 1
Retained earnings December 31
50
1988
$126,594
26,825
12,680
3,791
2,007
$171,897
$ 39,732
14,519
20,923
27,400
$102,574
$ 69,323
$ 863
109,522
$110,385
$(41,062)
$ 2, 53 8
$ 2,53 8
$ (3 8, 5 24)
$ (3,576)
(72)
$ (3,648)
$(42,172)
$(42,172)
109,522
$ 67,350
29,325
$ 96,675
1987
$ 73,405
26,420
12,045
1,437
199
$113,506
$ 38,168
8,828
21,479
18,406
$ 86 , 881
$ 26,625
$ 604
81,527
$ 82,131
$(55,506)
$ 427
(621)
$ (194)
$(55,700)
$ (1,349)
$ (1,349)
$(57,049)
$ (57,049)
81,527
$ 24,478
4,847
$ 29,325
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CITY OF ANDOVER, MINNESOTA
WATER FUND
STATEMENTS OF CHANGES IN FINANCIAL POSITION
YEARS ENDED DECEMBER 31, 1988 AND 1987
1988
1987
Sources of working capital
Operations
Net loss
Item not requ~r~ng working capital
Depreciation
$ (42,172) $ (57,049)
110,385 82,131
$ 68,213 $ 25,082
1,357,802 961,297
$1,426,015 $ 986,379
$1,359,789 $ 961,890
$ 66,226 $ 24,489
Contribution of property
Uses of working capital
Acquisition of property and equipment
Increase (decrease) in working capital
Elements of change in working capital
Cash and temporary investments $ 59,845 $ 18,164
Accrued interest receivable 338 (18)
Accounts receivable 9,750 6,722
Inventory (2,553) (10)
Accounts payable (1,020) (1,013)
Accrued expenses (134 ) 644
Increase (decrease) in working capital $ 66,226 $ 24,489
51
CITY OF ANDOVER, MINNESOTA
SEWER FUND
BALANCE SHEETS
DECEMBER 31, 1988 AND 1987
Current assets
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Due from other governmental units
Total current assets
Property and equipment
Furniture and equipment
Collection system
Less accumulated depreciation
Property and equipment - Net
Total assets
ASSETS
LIABILITIES AND FUND EQUITY
Current liabilities
Accounts payable
Due to other governmental units
Accrued expenses
Total current liabilities
Fund equity
Contributed
Retained earnings
Unreserved - Undesignated
Total fund equity
Total liabilities and fund equity
52
1988
1987
$ 28, 170 $ 13,006
178 86
65,240 51,590
7,398
$ 93,588 $ 72,080
$ 7.140 $ 7,140
9,105,859 7,597,033
$9,112,999 $7,604,173
(1,040,988) (872,905)
$8,072,011 $6,731,268
$8.165,599 $6,803,348
$ 855 $ 660
17,214
1,665 1,459
$ 19,734 $ 2,119
$8,069,015 $6,727,218
76,850 74,011
$8,145,865 $6,801,229
$8,165,599 $6,803,348
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CITY OF ANDOVER, MINNESOTA
SEWER FUND
STATEMENTS OF REVENUE, EXPENSE AND RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1988 AND 1987
Operating revenue
User charges
Penalties
Other
Operating expense (excluding depreciation)
Personal services
Supplies
Other services and charges
Disposal charges
Operating income before depreciation
Less depreciation
On assets acquired with own funds
On assets acquired from contributions
Operating loss
Other income (expense)
Interest income
Interest expense
Net loss before operating transfers
Transfers to other funds
Debt service funds
Capital projects funds
Administrative Trust Fund
Net loss
Disposition of net income (loss)
Net income (loss)
Add credit from transfer of depreciation to
contribution in aid to construction
Income transferred to retained earnings
Retained earnings January 1
Retained earnings December 31
53
1988 1987
$ 157,640 $ 131,939
4,149 3.225
2,723 30
$ 164,512 $ 135,194
$ 21,973 $ 19,138
3,187 2,865
5,931 3,492
126,563 93,521
$ 157,654 $ 119,016
$ 6,858 $ 16,178
$ 1,054 $ 999
167,029 131,403
$ 168,083 $ 132,402
$(161,225) $ (116, 224)
$ 1,189 $ 599
$ 1,189 $ 599
$ (160,036) $(115,625)
$ (4,066) $ (1,872)
(82,786)
(88)
$ (4,154) $ (84,658)
$(164,190) $(200,283)
$(164,190) $(200,283)
167,029 131,403
$ 2,839 $ (68,880)
74,011 142,891
$ 76,850 $ 74,011
CITY OF ANDOVER, MINNESOTA
SEWER FUND
STATEMENTS OF CHANGES IN FINANCIAL POSITION
YEARS ENDED DECEMBER 31, 1988 AND 1987
1988
1987
Sources of working capital
Operations
Net loss
Item not requ~r~ng working capital
Depreciation
$ (164,190) $ (200,283)
168,083 132,402
$ 3,893 $ (67,881)
18,647
1,508,826 2,053,681
$1,512,719 $2,004,447
$1,508,826 $2,054,275
18,835
$1,508,826 $2,073,110
$ 3,893 $ (68,663)
Decrease in other assets
Contribution of property
Uses of working capital
Acquisition of property and equipment
Decrease in deferred revenue
Increase (decrease) in working capital
Elements of change in working capital
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Due from other governmental units
Special assessments receivable
Accounts payable
Due to other governmental units
Accrued expenses
$ 15,164 $ (62,463)
92 (717)
13,650 7,180
(7,398) (8,306)
(4,148)
(195) (303 )
(17,214)
(206) 94
$ 3,983 $ (68,663)
Increase (decrease) in working capital
54
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CITY OF ANDOVER, MINNESOTA
FIDUCIARY FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1988
(with comparative totals for December 31, 1987)
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable
Deposits payable
Total liabilities
Fund balance
Unreserved-Undesignated
Total liabilities
and fund balance
$ 12,500
837,741
$850,241
$415,915
$415,915
$850,041
55
$ 12,500
837,741
$ 850,241
415,915
$1,266,156
$675,084
$675,084
271,505
$946,589
CITY OF ANDOVER,MINNESOTA
EXPENDABLE TRUST FUND
ADMINISTRATIVE TRUST FUND
STATEMENTS OF REVENUE, EXPENDITURES AND FUND BALANCE
YEARS ENDED DECEMBER 31, 1988 AND 1987
1988
1987
Revenue
Interest earnings
$ 11,402
$ 19,609
Other sources
Transfers from other funds
Capital projects funds
Enterprise funds
Total other sources
$178,933 $111,442
160
$179,093 $111,442
$198,702 $122,844
$ 54,292 $ 34,145
$144,410 $ 88,699
271,505 182,806
$415,915 $271,505
Total revenue and other sources
Other uses
Transfers to General Fund
Increase in fund balance
Fund balance January 1
Fund balance December 31
AGENCY FUND
ESCROW FUND
STATEMENT OF CHANGES IN ASSETS AND Llp~ILITIES
YEAR ENDED DECEMBER 31, 1988
AS SETS
Balance Balance
January 1 Additions Deductions December 31
$675,084 $169,822 $844,906
5,335 5,335
$675,084 $175,157 $850,241
Cash
Accrued interest receivable
Total assets
LIABILITIES
Accounts payable
Deposits payable
$ 12,500
162,657
$ 12,500
837,741
$675,084
$675,084
$850,241
$175,157
Total liabilities
56
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CITY OF ANDOVER, MINNESOTA
STATEMENTS OF GENERAL FIXED ASSETS
DECEMBER 31, 1988 AND 1987
General Fixed Assets
Land and improvements
Buildings and improvements
Furniture and equipment
Machinery and automotive equipment
Total General Fixed Assets
Investment in General Fixed Assets
57
1988 1987
$ 522,707 $ 419,983
581,838 581,838
101,813 101,070
965,863 852,359
$2,172,221 $1,955,250
$2,172,221
$1,955,250
CITY OF ANDOVER, MINNESOTA
STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 31, 1988 AND 1987
Amount available and to be provided for payment
of general long-term debt
Amount available in debt service funds
Resources to be provided by future revenues
Total
General long-term debt payable
Bonds and Certificates of Indebtedness
G.O. Improvement (Building and Equipment)
Bonds of 1978
Certificates of Indebtedness
State Aid Street Bonds
G.O. Tax Increment Bonds
G.O. Improvement (special assessment) Bonds
Accounts payable - Assessments on City property
Contracts payable - Equipment purchase
Due to other governmental units
Metropolitan Waste Control Commission
Accrued expenses - Vacation pay - Governmental
Total
58
1988
1987
(Restated)
$ 9,796,336
17,381,877
$ 7,645,589
14,126,666
$27,178,213
$21,772,255
$ 50,000 $ 105,000
233,000 312,000
810,000 360,000
1,270,000 1,270,000
24,509,100 19,587,800
$26,872,100 $21,634,800
234,495 81,589
20,012 10,267
10,409 13,959
funds 41, 197 31,640
$27,178,213 $21,772,255
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CITY OF ANDOVER, MINNESOTA
SCHEDULE OF CASH, TEMPORARY INVESTMENTS AND SECURITY FOR DEPOSITS
DECEMBER 31, 1988
Face amount
as securities
pledged as
collateral
by depository
First National Anoka
Checking accounts
Money market accounts
Certificates of deposit
$ 591,576
416,470
3,464,956
$ 4,473.002 $6,368,000
$ 77,984 $ 350,000
$ 3 11, 7 65
4,500,000
$ 4,811,765
$ 3,676,011
$ 998,980
$ 650
$14,038,392
St. Anthony National Bank
Money market account
M4 Fund
Honey market fund
Certificates of deposit
Marquette Bank
Commercial paper
Piper, Jaffray and Hopwood
U.S. Government obligations
Petty cash and change funds
Total cash and investments
Additional security of $100,000 each for demand deposits and time deposits is
provided at each depository by the Federal Deposit Insurance Corporation.
59
CITY OF ANDOVER. MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
DECEMBER 31, 1988
Bonded indebtedness
General Obligation Improvement Bonds
of 1978 (building and equipment)
Certificate of Indebtedness
1985 Certificates of Indebtedness
1986 Certificates of Indebtedness
1987 Certificates of Indebtedness
Interest
rates
5.55-5.70
7.50
6.80-7,60
6.00
State and Street Bonds
General Obligation State and Street Bonds of 1984 6.75-9.00
General Obligation State and Street Bonds of 1988 5.60-6.80
Tax Increment Bonds
General Obligation Tax Increment Bonds of 1987A
General Obligation Tax Increment Bonds of 1987A
G.O. Improvement (special assessment) Bonds
General Obligation Improvement Bonds of 1976A
General Obligation Improvement Bonds of 1976B
General Obligation Improvement Bonds of 1977A
General Obligation Improvement Bonds of 1977B
General Obligation Improvement Bonds of 1978
General Obligation Improvement Bonds of 1979
General Obligation Improvement Bonds of 1980A
General Obligation Improvement Bonds of 1980B
General Obligation Improvement Bonds of 1980C
General Obligation Improvement Bonds of 1985A
General Obligation Improvement Bonds of 1985B
General Obligation Improvement Bonds 1986A
General Obligation Refunding Improvement
Bonds 1986A
General Obligation Improvement Bonds 1986B
General Obligation Refunding Improvement
Bonds 1986C
General Obligation
General Obligation
General Obligation
Improvement Bonds
Improvement Bonds
Improvement Bonds
1987A
1987B
1988
Total Bonded Indebtedness
Long-term payables
Metropolitan Waste Control Commission
Special assessments on City owned property
Equipment purchases
Total Indebtedness
60
8.25-9.90
8.10
6.20-6.80
5.00-6.75
5.00
5.25-5.50
5.25-6.00
6.50
6.10-6.90
7.00
8.50-9.10
8.86-9.60
7.96-9.00
5.00-7.90
6.25-7.25
4.75-6.30
6.00-7.40
5.60
6.35
6.00
5.369
6.25-10.70
Various
Issue
date
11/01/78
11/01/85
06/01/86
02/01/87
Final
maturity
date
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02/01/89
05/01/90
06/01/91
02/01/92
09/01/84 09/01/94
08/01/88 08/01/98
05/01/87
12/01/87
08/01/76
11/01/76
03/01/77
10/01/77
11/01/78
11/01/79
06/01/80
08/01/80
10/01/80
08/01/85
08/01/85
07/01/86
08/01/86
10/01/86
08/01/86
08/01/87
12/01/87
08/01/88
1971
Various
Various
.;_ l-
08/01/05
12/01/90
02/01/97
11/01/96
01/01/06
02/01/98
02/01/99
02/01/95
02/01/91
02/01/01
02/01/90
02/01/00
08/01/00
08/01/01
08/01/91
10/01/96
08/01/02
08/01/90
12/01/90
08/01/91
1991
2001
1992
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Authorized
and issued Redeemed Outstanding Principal Interest
I
$ 430,000 $ 380,000 $ 50,000 $ 50,000 $ 1,400
I
$ 100,000 $ 60,000 $ 40,000 $ 20,000 $ 2,250
I 95,000 38,000 57,000 19,000 3 , 53 4
170,000 34,000 136,000 34,000 7,234
$ 365,000 $ 132,000 $ 233,000 $ 73,000 $ 13,018
I $ 510,000 $ 200,000 $ 310,000 $ 50,000 $ 25,975
500,000 500,000 50,000 31,500
$1,010.000 $ 200,000 $ 810,000 $ 100,000 $ 57,475
I $ 1,065,000 $ 1,065,000 $ 101,176
205,000 205,000 18,060
I $ 1,270,000 $ 1,270,000 $ 119,236
$ 1,635,000 $ 685,000 $ 950,000 $ 90,000 $ 60 ,765
56,000 33,600 22,400 2,800 1,470
I 1,215 ,000 275,000 940,000 35,000 47,000
780,000 280,000 500,000 40,000 25,668
270,000 85,000 185,000 15,000 10,425
I 270,000 110,000 160,000 20,000 9,750
430,000 255,000 175,000 50,000 10,240
98,000 34,300 63,700 4,900 4,287
4,365,000 4,005,000 360,000 170,000 23 ,375
I 300,000 45 ,000 255,000 15,000 22,256
2,350,000 235,000 2,115.000 150,000 171,915
1,795,000 150,000 1,645,000 100,000 117,040
I 180,000 72,000 108,000 36,000 7,560
2,600,000 405,000 2,195,000 240,000 128,045
I 2,485,000 2,485 ,000 168,980
5,000,000 5,000,000 262,500
1,550,000 1,550,000 93,000
I 5,800,000 5,800.000 348,000
$31,179,000 $6.669,900 $24,509,100 $ 968,700 $1,512,276
I $34,254,000 $7,381,900 $26,872,100 $1,191,700 $1,703,405
$ 43,018 $ 32,609 $ 10,409 $ 3,742 $ 558
I 264,756 30,261 234,495 12,034 21,749
23,991 3,979 20,012 4,745 2,528
I $ 331,765 $ 66,849 $ 264,916 $ 20,521 $ 34,835
I $34,585,765 $7,448,749 $27,137,016 $1.212,221 $1,554,989
1
I 61
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CITY OF ANDOVER, MI~mESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31, 1988
Annual
Issue Maturity Interest se rial
date date rate payments
G.O. Improvement Bonds of 1978
General Obligation Improvement
Bonds of 1978 (building and
equipment) 11/01/78
February 1, 1989 02/01/89 5.60 $ 50,000
Certificates of indebtedness
1985 Certificates of
Indebtedness 08/01/85
$20,000 per year 05/01/89-90 7.50 $ 40,000
1986 Certificates of
Indebtedness 06/01/86
June 1, 1989 06/01/89 7,20 $ 19,000
June 1, 1990 06/01/90 7.40 19,000
June 1, 1991 06/01/91 7.60 19,000
$ 57,000
1987 Certificate of
Indebtedness 02/01/ 87
February 1, 1989 02/01/89 5.95 $ 34,000
February 1, 1990 02/01/90 6.00 34,000
February 1, 1991 02/01/91 6.10 34,000
February 1, 1991 02/01/92 6.20 34,000
$ 136,000
Total certificates of indebtedness $ 233,000
State aid street bonds
General Obligation State Aid
Street Bonds of 1984 09/01/84
September 1, 1989 09/01/89 7,75 $ 50,000
September 1, 1990 09/01/90 8.00 50,000
September 1, 1991 09/01/91 8.20 50,000
September 1, 1992 09/01/92 8.50 50,000
September 1, 1993 09/01/93 8.70 50,000
September 1, 1994 09/01/94 9.00 60,000
$ 310,000
"
62
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' SCHEDULE OF BONDS PAYABLE (CONTINUED)
DECEMBER 31, 1988
Annual
Issue Maturity Interest serial
date date rate payments
' State aid street bonds (continued)
General Obligation State Aid
Street Bonds of 1988 08/01/88
August 1, 1989 09/01/89 5.60 $ 50,000
August 1, 1990 09/01/90 5.80 50,000
August 1, 1991 09/01/91 6.00 50,000
August 1, 1992 09/01/92 6.10 50,000
August 1, 1993 09/01/93 6.25 50,000
August 1, 1994 09/01/94 6.40 50,000
August 1, 1995 09/01/95 6.60 50,000
August 1, 1996 09/01/96 6.70 50,000
August 1, 1997 09/01/97 6.75 50,000
August 1, 1998 09/01/98 6.80 50,000
$ 500,000
Total state aid street bonds $ 810,000
' Tag increment bonds
General Obligation Tax Increment
Bonds of 1987A 05/01/87
August 1, 1990 08/01/90 8.25% $ 15,000
' August 1, 1991 08/01/91 8.50 35,000
August 1, 1992 08/01/92 8.75 40,000
August 1. 1993 08/01/93 8.85 45,000
August 1, 1994 08/01/94 9.00 45,000
August 1, 1995 08/01/95 9.15 50,000
August 1, 1996 08/01/96 9.25 55,000
' August 1, 1997 08/01/97 9.35 55,000
August 1, 1998 08/01/98 9.45 65,000
August 1, 1999 08/01/99 9.55 70,000
August 1, 2000 08/01/00 9.65 75,000
August 1, 2001 08/01/01 9.75 85,000
August 1, 2002 08/01/02 9.75 95,000
August 1, 2003 08/01/03 9.80 100,000
' August 1, 2004 08/01/04 9.85 110,000
August 1, 2005 08/01/05 9.90 125,000
$1,065,000
' General Obligation Tax Increment
Bonds of 1987B 12/01/87
December 1, 1990 12/01/90 8.10 $ 205,000
Total tax increment bonds $1,270,000
,
' 63
y
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF BONDS PAYABLE (CONTINUED)
DECEMBER 31, 1988
Annual l
Issue Maturity Interest serial
date date rate payments
G.O. Improvement (special assessment)
bonds
General Obligation Improvement
Bonds of 1976A 08/01/76
February 1, 1989 02/01/89 6.40 $ 90,000
February 1, 1990 02/01/90 6.50 95,000
February 1, 1991 02/01/91 6.60 100,000
February 1, 1992 02/01/92 6.70 110,000
February 1, 1993 02/01/93 6.80 95,000
February 1, 1994 02/01/94 6.80 105,000
February 1, 1995 02/01/95 6.80 110,000
February 1, 1996 02/01/96 6.80 120,000
February 1, 1997 02/01/97 6.80 125,000
$ 950,000
General Obligation Improvement
Bonds of 1976A 11/01/76
$2,800 per year 11/01/89 -91 6.25 $ 8,400
$2,800 per year 11/01/92 -96 6.75 14,000
$ 22,400
General Obligation Improvement
Bonds of 1977A 03/01/77
January 1, 1990 01/01/90 5.00 $ 35,000
$40,000 per year 01/01/91 -92 5.00 80,000
$45,000 per year 01/01/93 -94 5.00 90,000
$50,000 per year 01/01/95 -96 5.00 100,000
$55,000 per year 01/01/97 -98 5.00 110,000
$60,000 per year 01/01/99 -2000 5.00 120,000
$65,000 per year 01/01/01 -03 5.00 195,000
$70,000 per year 01/01/04 -06 5.00 210,000
$ 940,000
General Obligation Improvement
Bonds of 1977B 10/01/77
$40,000 per year 02/01/89 -90 5.25 $ 80,000
February 1, 1991 02/01/91 5.25 45,000
February 1, 1992 02/01/92 5.20 45,000
February 1, 1993 02/01/93 5.25 50,000
February 1, 1994 02/01/94 5.30 50,000
$55,000 per year 02/01/95 -96 5.40 110,000
$60,000 per year 02/01/97 -98 5.50 120,000
$ 500,000
64
I
CITY OF ANDOVER, MINNESOTA
I SCHEDULE OF BONDS PAYABLE (CONTINUED)
DECEMBER 31, 1988
I
Annual
I Issue Maturity Interest se rial
date date rate payments
I G.O. Improvement (special assessment)
bonds (continued)
General Obligation Improvement
Bonds of 1978 01/01/78
I February 1, 1989 02/01/89 5.50 $ 15.000
February 1, 1990 02/01/90 5.60 15,000
February 1, 1991 02/01/91 5.70 15,000
I February 1, 1992 02/01/92 5.75 15,000
February 1, 1993 02/01/93 5.80 15 , 000
February 1, 1994 02/01/94 5.90 15,000
February 1, 1995 02/01/9.5 6.00 15,000
I $20,000 per year 02/01/96-99 6.00 80,000
$ 185,000
I General Obligation Improvement
Bonds of 1979 11/01/79
$20,000 per year 02/01/89-91 6.50 $ 60,000
I $25,000 per year 02/01/92-95 6,50 100,000
$ 160,000
General Obligation Improvement
I Bonds of 1980A 06/01/80
February 1, 1989 02/01/89 6.70 $ 50,000
February 1, 1990 02/01/90 6.80 60,000
I February 1, 1991 02/01/91 6.90 65,000
$ 175,000
I General Obligation Bonds
of 1980B 08/01/80
$4,900 per year 02/01/89-2001 7.00 $ 63.700
I General Obligation Improvement
Bonds of 1980C 10/01/80
February 1, 1989 02/01/89 8.50 $ 170,000
I February 1, 1990 02/01/90 8.50 190,000
$ 360,000
I General Obligation Improvement
J I Bonds of 1985A 08/01/85
$15,000 per year 02/01/89-90 8.86 $ 30,000
J $20,000 per year 02/01/91-95 9.07 100,000
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i $ 255,000
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CITY OF ANDOVER, MINNESOTA
SCHEDULE OF BONDS PAYABLE (CONTINUED)
DECEMBER 31, 1988
Annual
Issue Maturity Interest se rial
date date rate payments
G.O. Improvement (special assessment)
bonds (continued)
General Obligation Improvement
Bonds of 1985B 08/01/85
August 1, 1989 08/01/89 8.13 $ 150,000
$170,000 per year 08/01/90-91 8.21 340,000
August 1, 1992 08/01/92 8.39 180,000
August 1, 1993 08/01/93 8.47 190,000
$220,000 per year 08/01/94-95 8.54 440,000
$180,000 per year 08/01/96-97 8.74 360,000
August 1, 1998 08/01/98 8.93 165,000
August 1, 1999 08/01/99 9.00 160,000
August 1, 2000 08/01/00 9.00 130,000
$2,115,000
General Obligation Improvement
Bonds of 1986A 07/01/86
August 1, 1989 08/01/89 5.75 $ 100,000
August 1, 1990 08/01/90 6.10 100,000
August 1, 1991 08/01/91 6.40 125,000
August 1, 1992 08/01/92 6.60 125,000
August 1, 1993 08/01/93 6.80 125,000
August 1, 1994 08/01/94 7.00 125,000
August 1, 1995 08/01/95 7.20 125,000
August 1, 1996 08/01/96 7.40 125,000
August 1, 1997 08/01/97 7.50 150,000
August 1, 1998 08/01/98 7.60 150,000
August 1, 1999 08/01/99 7.70 145,000
August 1, 2000 08/01/2000 7,80 125,000
August 1, 2001 08/01/2001 7.90 125,000
$1,645,000
General Obligation Refunding
Improvement Bonds of 1986A 08/01/86
August 1, 1989 08/01/89 6.75 $ 36,000
August 1, 1990 08/01/90 7.00 36,000
August 1, 1991 08/01/91 7.25 36,000
$ 108.000
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CITY OF ANDOVER, MINNESOTA
SCHEDULE OF BONDS PAYABLE (CONTINUED)
DECEMBER 31, 1988
Annual
Issue Maturity Interest se rial
date date rate payments
G.O. Improvement (special assessment)
bonds (continued)
General Obligation Improvement
Bonds of 1986B 10/01/86
October 1, 1989 10/01/89 5.20 $ 240,000
October 1, 1990 10/01/90 5.40 240,000
Oct ober 1, 1991 10/01/91 5.60 240,000
October 1, 1992 10/01/92 5.75 240,000
October 1. 1993 10/01/93 5.90 265,000
October 1, 1994 10/01/94 6.00 290,000
October 1, 1995 10/01/95 6.15 340,000
October 1. 1996 10/01/96 6.30 340,000
$ 2,195,000
General Obligation Improvement
Bonds of 1986C 08/01/86
August 1, 1991 08/01/91 6.00 $ 210,000
August 1, 1992 08/01/92 6.10 210,000
August 1, 1993 08/01/93 6.25 215,000
August 1, 1994 08/01/94 6.50 210,000
August 1, 1995 08/01/95 6.70 210,000
August 1, 1996 08/01/96 6.90 210,000
August 1, 1997 08/01/97 7.00 210,000
August 1. 1998 08/01/98 7.10 210,000
August 1, 1999 08/01/99 7.20 210,000
August 1, 2000 08/01/2000 7.25 210,000
August 1, 2001 08/01/2001 7.30 215,000
August 1, 2001 08/01/2002 7.40 165,000
$ 2,485,000
General Obligation Improvement
Bonds of 1987A 08/01/87
August 1, 1990 08/01/90 5,25 $ 5,000,000
General Obligation Improvement
Bonds of 1987B 12/01/87
December 1, 1990 12/01/90 6.00 $ 1,550,000
General Obligation Improvement
Bonds of 1988 08/01/88
August 1, 1991 08/01/91 6.00 $ 5,800,000
Total G.O. Improvement (special assessment) Bonds $24,509,100
Total bonds payable $26,872,100
Note - January 1, 1989 maturities are considered matured December 31, 1988.
67
CITY OF ANDOVER, MINNESOTA
DEBT SERVICE REQUIREMENTS
DECEMBER 31, 1988
G.O. Improvement
(special assessment) Bonds Tax Increment Bonds
Year Principal Interest Total Principal Interest Total
1989 $ 968,700 $1,512,276 $ 2,480,976 $ 119,236 $ 119,236
1990 7,578,700 1,448,396 9,027,096 $ 220,000 119,235 339,235
1991 6,893,700 1,031,905 7,925,605 35 , 0 00 99,938 134,938
1992 1,022,700 616,437 1,639,137 40,000 96,962 136.962
1993 1,047,700 551,281 1,598,981 45.000 93 , 46 3 138,463
1994 1,117,700 482,374 1,600,074 45,000 89,480 134,480
1995 1,177,700 407,310 1,585,010 50,000 85,430 135,430
1996 1,137,700 327,446 1,465,146 55,000 80 , 855 135,855
1997 829,900 248,894 1,078,794 55.000 75.768 130,768
1998 694,900 193,496 888,396 65,000 70,625 135,625
1999 624,900 143,822 768,722 70,000 64.482 134,482
2000 559,900 96,795 656,695 75.000 57,798 132,798
2001 404,900 55,326 460,226 85,000 50,560 135,560
2002 240,000 26,701 266,701 95,000 42,272 137,272
2003 70,000 10,500 80,500 100,000 33,010 133,010
2004 70,000 7.000 77,000 110,000 23,210 133,210
2005 70,000 3,500 73,500 125,000 12,375 137,375
$24,509,100 $7,163,459 $31.672,559 $1,270,000 $1,214,699 $2,484,699
State Aid Street Bonds Certificates of Indebtedness
Year Principal Interest Total Prine ipal Interest Total
1989 $ 100,000 $ 57,475 $ 157,475 $ 73.000 $ 13,018 $ 86,018
1990 100,000 50,800 150,800 73,000 8,099 81,099
1991 100,000 43,900 143,900 53,000 3,867 56,867
1992 100,000 36,800 136,800 34,000 1,054 35,054
1993 100,000 29,500 129,500
1994 110,000 22,025 132,025
1995 50,000 13,425 63,425
1996 50,000 10,125 60,125
1997 50,000 6,775 56,775
1998 50,000 3,400 53,400
$ 810,000 $ 274,225 $ 1,084,225 $ 233.000 $ 26,038 $ 259,038
G.O. Improvement Bonds of 1978
Principal Interest Total
1989
$ 50,000
$
$ 51,400
1,400
Note - January 1 maturities are considered matured December 31 of the preceding year.
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CITY OF ANDOVER, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR TAX INCREMENT FINANCING DISTRICT 1-1
DECEMBER 31, 1988
Sources of funds
Tax increments
State credits
Bond proceeds
Land sales
Interest
Accounted
for in Current
prior years year Total
$ 2,217 $ 49,384 $ 51,601
5,839 5,839
205,000 205,000
70,081 70,081
7,435 7 ,435
$207,217 $132,739 $339,956
Uses of funds
Capital outlay $169,643 $ 53,324 $222,967
Administrative costs and other 11,000 11,000
Interest and service charges 5,528 18,060 23,588
$186,171 $ 71,384 $257,555
District balance $ 21,046 $ 61,355 $ 82, 401
SUPPLEMENTAL INFORMATION
Name of District
Tax Increment District - Development
District No. 1-1
Redevelopment District established in
1986 under Section 472 Minnesota
Statutes for a duration of 20 years
from receipt of first increment.
Type of District and
authorizing statutes
Assessed valuation
Original
Current (1988)
$340,365
382,363
Captured
$ 41,998
Financing
Total bonds issued
General Obligation TAx
Increment Bonds of 1987B
Outstanding bonds at
December 31, 1988
$205,000
$205,000
69
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR TAX INCREMENT FINANCING DISTRICT 1-2
DECEMBER 31, 1988
Sources of funds
Bond proceeds
Interest
Accounted
for in Current
prior years year Total
$1,044,126 $1,044,126
14,484 $ 10,174 24,658
$1,058,610 $ 10,174 $1,068,784
$ 763,329 $ 763,329
29 , 821 29 , 821
26,648 $104,321 130,969
$ 819,798 $104,321 $ 924,119
$ 238,812 $(94,147) $ 144,665
Uses of funds
Capital outlay
Administrative costs and other
Interest and service charges
District balance
SUPPLEMENTAL INFORMATION
Name of District
Tax Increment District - Development
District No. 1-2
Redevelopment District established in
1986 under Section 472 Minnesota
Statutes for a duration of 20 years
from receipt of first increment.
Type of District and
authorizing statutes
Assessed valuation
Original
Curren t (1988)
$ 134,240
134,240
Captured
$ -0-
Financing
Total bonds issued
General Obligation TAx
Increment Bonds of 1987A
Outstanding bonds at
December 31, 1988
$1,065,000
$1,065,000
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CITY OF ANDOVER, MINNESOTA
SCHEDULE OF RESOURCES AVAILABLE FOR PAYMENT
G.O. IMPROVEMENT (SPECIAL ASSESSMENT) BONDS
Resources available Resources
Cash and over (under)
temporary Bonds bonds
Bond issue investments Receivables Total payable payable
1976A&B $ 1,196,989 $ 319,312 $ 1,516,301 $ 972,400 $ 543,901
1977A 680,817 328,274 1,009,091 940,000 69,091
1977B 581,735 169,493 751,228 500,000 251,228
1978 134,115 92,855 226,970 185,000 41,970
1979 116,574 73,063 189,637 160,000 29,637
1980A 105,106 87,325 192,431 175,000 17,431
1980B 78,128 12,365 90,493 63,700 26,793
1980C 388,299 1,664 389,963 360,000 29,963
1985A 267,926 124,802 392,728 255,000 137,728
1985B 1,069,291 1,162,817 2,232,108 2, 115 ,000 117,108
1986A 1,438,675 252,546 1,691,221 1,645,000 46,221
1986A Refunding 89,655 76,631 166,286 108,000 58,286
1986B 346 , 752 520,973 867,725 2,195,000 (1,327,275) (A)
1986C Refunding 1,304,154 1,597,697 2,901,851 2,485,000 416,851
1987A 659,190 3,105,348 3,764,538 5,000,000 (1,235,462) (B)
1987B (276,308) 839,417 563,109 1,550,000 (986,891) (C)
1988A (361,834) 2,775,762 2,413,928 5,800,000 (3,386,072) (D)
Water trunk 922,892 9,875 932,767 932,767
Sewer trunk 676,053 17,008 693,061 693,061
$ 9,418,209 $11,567,227 $20,985,436 $24,509,100 $ (3,523,664)
Additional financing sources
(A) Water and sewer trunk funds
(B) Water and sewer trunk funds
(C) Tax increments on commercial park property
Water and sewer trunk funds
(D) Projects to be assessed
Water and sewer trunk funds
City share of costs Crosstown Boulevard
$ 1,200,000
1,200,000
$ 650,000
250,000 900,000
$ 1,500,000
850,000
480,000 2,830,000
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SECTION III
STATISTICAL SECTION
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CITY OF ANDOVER, MINNESOTA
I TAX LEVIES AND COLLECTIONS
I
I Percentage
Collection Percentage Collection of total
Total of current of levy of prior Total collections
I Year levy year's levy collected years' levy collections to levy
1982 $496,388 $450,271 90 .71 $21,859 $472,130 95.11
I 1983 570,009 548,667 96.26 18,286 566,953 99.46
1984 645,466 621,184 96.23 16,627 637,811 98.81
I 1985 689,698 671,021 97 .29 11,222 682,243 98.92
I 1986 802,877 784,514 97.71 18,558 803,072 100.02
1987 880,048 862,018 97.95 19,185 881,203 100.13
I 1988 995,590 978,595 98.29 16,832 995,427 99.98
I SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
I Percentage
Collection Percentage Collection of total
Total of current of levy of prior Total collections
Year levy year's levy collected years' levy collections to levy
I
1982 $793,693 $666,979 84.03 $60,010 $726,989 91.60
I 1983 724,655 634,003 87.49 77 ,505 711,508 98.19
1984 673,732 583,244 86.57 60,445 643,689 95.54
I 1985 725,828 660.741 91.03 70,394 731,135 100.73
1986 700,636 662,322 94.53 84,548 746,870 106.46
I 1987 989,102 903,856 91.38 28,728 932,584 94.29
I 1988 1,205,379 1,090,675 90.48 83,419 1.174,094 97.40
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CITY OF ANDOVER, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1988
Assessed value
Debt limit 7.33% of assessed value (B)
Amount of debt applicable to debt limit:
Total bonded debt
Deductions:
Debt Service Fund - Cash and temporary
investments (1978 G.O. Bonds)
G.O. Improvement (special assessment)
Bonds
Tax increment bonds
State aid bonds
Total amount of debt applicable to
debt limit
Legal debt margin
$26.872,100
$ 151 ,3 15
24,509,100
1,270,000
810,000 26,740 ,415
$57,820,860
$ 4,238,269
131,685
$ 4,106,584
The assessed value reflects a deduction of $2,186,565 contributed to the
"Fiscal Disparity" area-wide tax base.
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CITY OF ANDOVER, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
DECEMBER 31, 1988
Limit on Net Debt
M.S.A. Section 475.53
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 no
municipality, except a school district or a city of the first class, shall incur or
be subject to a net debt in excess of 7.33% of the assessed value".
Definitions
M.S.A. Section 475.51
"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its
gross debt the amount of current revenues which are applicable within the current
fiscal year to the payment of any debt, and the aggregate of the principal of the
following:
(1) Obligations issued for improvements which are payable wholly or
partly from the proceeds of special assessments levied upon
property specially benefited thereby, including those which are
general obligations of the municipality issuing them, if the
municipality is entitled to reimbursement in whole or in part from
the proceeds of the special assessments.
(2) Warrants or orders having no definite or fixed maturity.
(3) Obligations payable wholly from the income from revenue-producing
conveniences.
(4) Obligations issued to create or maintain a permanent improvement
revolving fund.
(5) Obligations issued for the acquisition and betterment of public
water-works systems, and public lighting, heating or power systems,
and of any combination thereof or for any other public convenience
from which a revenue is or may be derived.
(6) Not applicable.
(7) Amount of all money and the face value of all securities held as a
sinking fund for the extinguishment of obligations other than those
deductible under this subdivision.
(8) All other obligations which under the provision of the law
authorizing their issuance are not to be included in computing the
net debt of the municipality."
75
CITY OF ANDOVER, MINNESOTA
ASSESSED VALUATIONS, TAX LEVIES AND MILL RATES
(shown by year of tax collectibility)
1986 1987 1988
Assessed valuations $46,379,188 $54,400,472 $60,605,381
Increment valuation (41,998) (597,956)
Contribution to fiscal disparities pool (1,736,037) (2,000,729) (2,186,565)
Distribution from fiscal disparities pool 8,492,419 10,411,278 12.696,861
Taxable valuation $53,135,570 $62,769,023 $70,517,721
Tax levies
Revenue
General obligation debt
$
664,930 $
137,903
860,689
134,902
995,591
$
742,563
135,598
$ 802,833 $ 878,161
$
Mill rates
Revenue
General obligation debt
12.248
1. 920
11. 7 47
2.145
11. 9 97
2.488
14.485
13.892
14.168
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SECTION IV
OTHER
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GMHCo
GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Cerrified Pub/k Accountants
AUDITORS' REPORT ON LEGAL COMPLIANCE
City Council
City of Andover
We have audited the general purpose financial statements of the City of Andover,
Minnesota as of and for the year ended December 31, 1988, and have issued our
report thereon dated June 6, 1989. Our audit was made in accordance with generally
accepted auditing standards; the provisions of the Legal Compliance Audit Guide
promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Sec.
6.65. Accordingly, the audit included such tests of the accounting records and
such other auditing procedures as we considered necessary.
The Legal Comoliance Audit Guide covers five main categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest,
public indebtedness, and claims and disbursements. Our study included all of the
listed categories. The results of our tests indicate that for the items tested,
the City of Andover complied with the material terms and conditions of applicable
legal provisions. Further, for the items not tested, based on our audit and the
procedures referred to above, nothing came to our attention to indicate that the
City had not complied with such legal provisions.
This report is intended solely for the use of the City of P~dover, Minnesota and
should not be used for any other purpose. This restriction is not intended to
limit the distribution of this report, which is a matter of public record.
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June 6, 1989
1433 UTICA AVENUE SOUTH. SUITE 175
77
MINNEAPOLIS. MINNESOTA 55416
612/546-2566
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