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HomeMy WebLinkAbout1989 CAFR I I I I I I I I I I I I I I I I - I I - I CITY OF ANDOVER. MINNESOTA FINANCIAL STATEMENTS DECEMBER 31, 1989 ~ \.j o u u u ~ .. u c o u u u u c u u w c [j ~ --=-=- I---~- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1989 Term of office expires first busines s day of January Elected Mayor James Elling 1991 Council Michael Knight Marjorie Perry Donald Jacobson Kenneth Orttel 1991 1991 1993 1993 Appointed James E. Schrantz - Administrator Shirley Clinton - Treasurer Victoria Volk - Clerk Howard Koolick - Finance Director . u C U U o c c c c o u u u o c c c c w - '- I -----_____=_____ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS SECTION I INTRODUCTORY SECTION Comments SECTION II FINANCIAL SECTION Independent auditors' 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 Statement of revenue, expenditures and fund balance - Budget and actual - General Fund and Certificates of Indebtedness Debt Service 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 sheet Statement of revenue. expenditures and fund balance - Budget and actual 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 Page I 1 2 4 6 8 9 10 30 31 32 33 38 39 41 42 ~~ 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 sheet Statement of revenue, expense and retained earnings Statement of changes in financial position Sewer Fund Balance sheet Statement of revenue, expense and retained earnings Statement of changes in financial position Fiduciary funds Combining balance sheet Expendable Trust Fund Statement of revenue, expenditures and fund balance Agency Fund Statement of changes in assets and liabilities Statement of general fixed assets Statement 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 Schedule of sources and uses of public funds - tax increment districts Schedule of resources available for payment of G.O. Improvement (special assessment) Bonds --- --- =--r c u Page CJ c 44 46 c 48 49 50 o 51 52 53 o u 54 55 56 o 57 o 58 o 58 c 59 o 60 [j 61 62 64 70 71 [j o 73 CJ c w I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS (CONTINUED) Pag~ 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 75 75 76 78 SECTION IV OTHER Auditors' report on legal compliance 79 CJ c c ~ III u c c c o u c c o u c ~ ~ c c w - ."~ I I ~I I I I I I I .1 - I ;1 , I I .1 ~ I 1 I i I ! I ~ I SECTION I INTRODUCTORY SECTION =---c-- D C C C C rl U C C o C C C o C C C C C C 1-- ----- I I I I I I I I I I I I I I I I I I I ~ 01 ANDOVER COMMENTS The City of Andover, Minnesota operates under "Optional Plan A" 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 which are not accounted for in a special fund. The principal sources of revenue are property taxes. intergovernmental revenue and fees. Expenditures are for general government, public safety, public works, recreation and other functions. The fund balance decreased $117,097 during the year to $614.903. This decrease was primarily a result of unanticipated expenditures for improvements to the City offices and under-estimating expenditures for police protection and legal fees related to prosecutions. A condensed summary of revenue and expenditures for the years ended December 31. 1989 and 1988 is shown below: Revenue and other sources Property taxes Licenses and permits Intergovernmental revenue Charges for services Fines and forfeits Other revenue Transfers from other funds 1989 1988 Budget Actual Budget Actual $ 670,726 $ 712,017 $ 841,000 $ 713.219 270,976 259.083 202,110 236,555 881,482 659.330 558,012 559,246 38,170 58,754 38,670 31.404 50,100 51,614 14,000 45.049 77 .700 73.909 74,100 84.680 70,000 70,545 76 ,900 94,738 $2.059,154 $1.885 ,252 $1,804,792 $1.764,891 $ 602,154 $ 645.521 $ 475.726 $ 521.775 778,875 705,415 635,425 496.710 377 ,496 296.275 315,610 333,978 29.366 18,658 26,196 12.030 207,859 218.571 182.451 240 .574 20,112 36,700 97,797 74.107 136,209 22,400 95,277 101,295 $2,054,850 $2.002,349 $1,804.792 $1,842,571 Expenditures and other uses General government Public safety Public works Sanitation Park and recreation Recycling Unallocated Transfers to other funds Increase (decrease) in fund balance 4,304 $ (117,097) $ -0- $ (77,680) $ I Special Revenue Funds r-' l. Special revenue funds are established to account for taxes and other revenue set aside for a particular purpose. c 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, 1989 the fund balance was $4.527. c Drainage and Mapping Fund - This fund was established to accumulate money for expenditures related to City-wide drainage and mapping. At December 31, 1989. the fund balance was $55,856. c Debt Service Funds c 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. state aids, special assessments and interfund transfers 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. c c The funds included with the debt service funds are: c 1978 General Obligation Bonds Certificates of Indebtedness State-aid Street Bonds Tax Increment Bonds G. O. Improvement (special assessment) Bonds c c Capital Projects Funds M l./ 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. c Equipment Fund - This fund was established to accumulate resources to be used for equipment acquisition. The fund balance was $23.522 at December 31. 1989. c 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 $24,862 at December 31. 1989. c Tax Increment Funds tax increment bonds is to be developed. - These funds were established to account for the proceeds of to be used for the acquisition and/or improvement of land which The fund balance was $49.648 at December 31, 1989. c 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 $28,099 at December 31. 1989. c State Aid Funds - These funds were established to account for aid received from the State of Minnesota for construction of certain designated streets. The fund balance was $98,812 at December 31. 1989. c II c CJ ==---i I I I I I I I I I I I I I I I I I I I Capital Projects Funds (Continued) Special Assessment Funds - Special assessment funds are established to account for the costs of improvements or services deemed to benefit property against which the assessments are levied. Primarily. the transactions accounted for are the receipt of bond proceeds or other sources of financing and expenditure of such proceeds for construction work done. The fund balance at December 31, 1989 was $3,591.037. 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. A condensed summary of Water Fund operations for the last three years is as follows: 1989 1988 1987 Operating revenue $ 234.614 $ 171.897 $113.506 Operating expense (excluding depreciation) 132,138 102,574 86,881 $ 102,476 $ 69.323 $ 26.625 Depreciation (127,456) (110.385) (82,131) Operating income (loss) $ (24.980) $ (41.062) $ (55.506) Other income (expense) - Net 8,447 2,538 (194) Loss before operating transfers $ (16,533) $ (38,524) $ (55.700) Operating transfers - Net (3.393) (3.648) (1,349) Net loss $ (19,926) $ (42.172) $ (57 ,049) A condensed summary of Sewer Fund operations for the last three years is as follows: 1989 1988 1987 Operating revenue Operating expense (excluding depreciation) $ 195.773 218,772 $ (22.999) (185,336) $(208.335) $ 164.512 $ 135.194 157,654 119.016 $ 6,858 $ 16.178 (168.083) (132.402) $(161,225) $(116.224) 1.189 599 $(160,036) $ (115 .625) (4,154) (84,658) $(164,190) $(200,283) Depreciation Operating loss Other income (expense) - Net 1,274 Loss before operating transfers $(207,061) Operating transfers - Net (3,853) Net loss $(210,914) III c 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 $414.377 at December 31. 1989. c c The Escrow Fund was established to account for monies held by the City as deposits for developers and others. The deposits will be refunded upon compliance with conditions set by Council. o General Fixed Assets c This account group is used to account for 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, 1989, the general fixed assets of the City amounted to $2.435.926. c c General Long-term Debt c 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, 1989 is as follows: c Original amount Outstanding December 31, 1989 c Bonded debt Certificates of Indebtedness State Aid Street Improvement Bonds G.O. Tax Increment Bonds G.O. Improvement (special assessment) Bonds c $ 475,000 1.010,000 1.270,000 $ 270.000 710,000 1.270.000 c 34.379,000 26,740,400 $28,990,400 c Total bonded debt Long-term payable - Metropolitan Waste Control Commission Assessments on City property Equipment purchases Vacation payable - Governmental funds 43.018 295,324 23.991 6.668 252.951 15,267 54.363 c c $29.319,649 o o IV c u -------r- I I I I I I I I I I I . I ~ I - I . I ; I ~ I i I - I SECTION II FINANCIAL SECTION i1 l.I u c c u ~ ~ ~ li.j U ri llII ~ U u c u c c c c c w .,.- I - 1:------ I I I I I I I I I I I I I I I I I I I 1 GMHCo GEORGE M. HANSEN COMPANY, P.A. A Professional Corporation of Certified 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, 1989, 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, such general purpose financial statements present fairly. in all material respects, the financial position of the City of Andover, Minnesota, at December 31. 1989, 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. Our audit was made for the purpose of forming an opl.nl.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. );4-<- ~ /~ ~,~4. May 16. 1990 1433 UTICA AVENUE SOUTH. SUITE 175 MINNEAPOLIS. MINNESOTA $5416 61 2/546~2S66 CITY OF ANDOVER, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROOPS DECEMBER 31, 1989 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 p~ount available in debt service funds for payment of bond principal and interest Amount to be provided by future revenues Total assets LIABILITIES AND EQUITY Liabilities Accounts payable Accrued expenses Contracts payable Due to other governmental units Deposits payable Deferred revenue Bonds payable Total liabilities Equity Contributed Invested in General Fixed Assets Retained earnings Unreserved-Undesignated Fund balance Reserved Unreserved Designated for subsequent year's expenditures Undesignated Total equity Total liabilities and equity See accompanying notes to financial statements. 2 General $699,361 5,507 13,065 35,251 16,622 27.356 $797,162 $ 59.274 27 .962 59,772 35 , 251 $182,259 $614,903 $614,903 $797,162 c ~ ~ Governmental Fund Special Debt Revenue Service $ 59,441 942 $ 60,383 $ 60,383 $ 60,383 $ 60.383 ;1'--1 u $12.145.713 211,69:1 c 12,273 30,759 c c c 27,850 303, 26~5 10,077.480 185,141 1,077 ,131 c c u $24.071,30S $ 7.936 ~ ill 11,673.776 c $11.681. 7l~ c c $12,389.59:1 c c c c ~ - $12,389,59:~ $24,071,30~~ ' Account Group Types Proprietary General General Total ' Capital Fund Type Fixed Long -term (Memorandum Only) Projects Enterprise Fiduciary Assets Debt 1989 1988 ' $3,927,603 $ 163,171 $1,065,093 $18,060,382 $14,038,392 67,109 2,841 25,844 313,936 73,981 25,338 19,561 66,010 41,502 100 120,699 137,421 100,705 27,850 53,383 303,265 163,725 10,077,480 11,240,368 t 185,141 335,617 1,104,487 757,652 5,460 - 5,460 2,976 ' 13,257,065 $2,435,926 15,692,991 15,265,835 $12,389,593 12,389,593 9,796,336 16,930,056 16,930,056 17,381,877 $3,994,812 $13,549,236 $1,090,937 $2,435,926 $29,319,649 $75,319,410 $69,271,910 ' $ 53,786 $ 5,119 $ 296 $ 252,951 $ 379,362 $ 407,147 9,546 54,363 91,871 62,262 125,046 15,267 140,313 354,793 37,086 6,668 103,526 31,890 676,264 676,264 843,741 11,709,027 12,039,229 28,990,400 28,990,400 26,872,100 ' $ 178,832 $ 51,751 $ 676,560 $29,319,649 $42,090,763 $40,611,162 $13,244,907 $13,244,907 $13,087,172 $2,435,926 2,435,926 2,172,221 252,578 252,578 173,525 ' $1,032,315 13,421,908 10,023,987 42,900 ' 2,783,665 $ 414,377 3,873,328 3,160,943 $3,815,980 $13,497,485 $ 414,377 $2,435,926 $33,228,647 $28,660,748 $3,994,812 $13,549,236 $1,090,937 $2,435,926 $29,319,649 $75,319,410 $69,271,910 3 CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUE. EXPENDITURES AND FUND BALANCE ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED DECEMBER 31. 1989 Revenue Property taxes Licenses and permits Intergovernmental revenue Special assessments Charges for services Fines and forfeits Interest Other Governmental Fund Special Debt General Revenue Service $ 712,017 $ 412.073 259.083 659.330 247.605 $ 4 3.963,445 58.754 51,614 30.016 3,969 808.70B 43,893 47.83Q $1,814.707 $ 3 . 973 $ 5.479.661 24.800 70.545 10.575 279. 06~~ $1,885 ,252 $14.548 $ 5,783,52e~ $ 645.521 705.415 296,275 $ 9.470 18.658 218.571 20.112 97.797 $ 18.03S 1,191.700 1,720,87:: $2.002.349 $ 9.470 $ 2.930,612 25 9 ,65i~ $2.002.349 $ 9.470 $ 3 ,190 ,26!~ $ (117,097) $ 5 .07 8 $ 2,593.25i' 732,000 55,305 9. 796 ,33/~ $ 614,903 $60,383 $12,389,59~~ Total revenue Other sources Bond proceeds Transfers from other funds Total revenue and other sources Expenditures General government Public safety Public works Sanitation Parks and recreation Recycling Unallocated Capital proj ects Redemption of bonds Interest Total expenditures Other uses Transfers to other funds Total expenditures and other uses Increase (decrease) in fund balance Fund balance (deficit) January 1 Fund balance December 31 See accompanying notes to financial statements. 4 --=c- - . U r-1 i . ill ~ I ' llII o ~ U o o o r1 .. u ~ ~ ~ C ~ c [j c w I I I Types Total I Capital Expendable (Memorandum Only) Proj ects Trust 1989 1988 I $ 1.124.090 $ 803,292 259,083 236,555 I $ 439.415 1.346.350 815.416 3,963,449 3,127,609 58.754 31,404 51. 614 45.049 I 384.690 $ 33.495 1. 260. 878 824.099 30.780 122,503 168,493 $ 854.885 $ 33.495 $ 8,186,721 $ 6.051,917 I 3.145.788 3,170.588 6,219,350 I 1.199,103 35,512 1,594,800 2.161.145 $5.199.776 $ 69,007 $12,952,109 $14.432,412 I $ 645.521 $ 521,775 705,415 496,710 305,745 333.978 I 18.658 12.030 218.571 240,574 20,112 97.797 142,623 I $2.320.604 2.338.639 7.300.597 1.191,700 1,062.700 34.114 1.754,991 1,436,201 I $2,354,718 $ 7.297.149 $11.547,188 I 1,257,352 $ 70,545 1.587.554 2,153,343 $3,612,070 $ 70.545 $ 8,884,703 $13,700,531 $1.587,706 $ 0.538) $ 4.067.406 $ 731,881 I 2.228.274 415,915 13.227,830 12.495,949 I $3,815.980 $414.377 $17,295.236 $13,227.830 I I 5 I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUE. EXPENDITURES AND FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND AND CERTIFICATES OF INDEBTEDNESS DEBT SERVICE FUND YEAR ENDED DECEMBER 31. 1989 General Fund Budget Actual Revenue Property taxes Licenses and permits Intergovernmental revenue Charges for services Fines and forfeits Interest Other $ 670,726 270,976 881.482 38.170 50,100 35,000 42.700 $1.989.154 Total revenue Other sources Transfers from other funds 70.000 Total revenue and other sources $2,059,154 Expenditures General government Public safety Public works Sanitation Recreation Recycling Un3.llocated Redemption of bonds and interest Total expenditures $ 602,154 778.875 377.496 29,366 207,859 36,700 $2.032.450 Other uses Transfers to other funds 22.400 Total expenditures and other uses $2,054,850 Increase (decrease) in fund balance $ 4.304 Fund balance January 1 Fund balance December 31 See accompanying notes to financial statements. 6 $ 712.017 259.083 659.330 58.754 51,614 30.016 43.893 $1.814,707 70,545 $1,885 ,252 $ 645.521 705,415 296,275 18.658 218.571 20,112 97,797 $2.002,349 $2,002,349 $ (117.097) 732,000 $ 614,903 -I c c c c C D o o o o o ~ ~ c c ~ c ~ W I I I Certificates of Indebtedness Total I Debt Service Fund (Memorandum Only) Budget Actual Budget Actual I $ 72,674 $ 53,527 $ 743.400 $ 765.544 270.976 259.083 I 27,335 25.222 908,817 684,552 38,170 58.754 50,100 51,614 35,000 30.016 I 42.700 43,893 $ 100,009 $ 78.749 $2.089.163 $1,893.456 I 7,246 70,000 77,791 $ 100.009 $ 85.995 $2,159,163 $1.971,247 I $ 602.154 $ 645,521 I 778.875 705.415 377.496 296,275 29.366 18.658 I 207.859 218.571 20,112 36,700 97.797 $ 95,850 $ 85.995 95.850 85,995 I $ 95.850 $ 85.995 $2,128.300 $2.088,344 I 22,400 $ 95.850 $ 85,995 $2,15 O. 700 $2,088.344 I $ 4.159 -0- $ 8,463 $ (117.097) -0- 732,000 I $ -0- $ 614,903 I I I 7 I CITY OF ANDOVER, MINNESOTA [j COMBINED STATEMENT OF REVENUE, EXPENSE AND RETAINED EARNINGS ALL PROPRIETARY FUND TYPES - ENTERPRISE FUNDS YEAR ENDED DECEMBER 31. 1989 Operating revenue User charges Meters Permit fees Penalties Other Operating expense (excluding Personal services Supplies Meters, etc. Other services and charges Disposal charges depreciation) Operating income before depreciation Less depreciation On assets acquired with own funds On assets acquired from contributions Operating loss Other income Interest income 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 earnings Retained earnings. January 1 Retained earnings. December 31 See accompanying notes to financial statements. 8 1989 $ 374.008 29 .710 12,800 13.601 268 $ 430,387 $ 82,941 21,763 25 ,164 40 . 861 180.181 $ 35 O. 91 0 $ 79,477 $ 2,899 309.893 $ 312,792 $ (233.315) 9,721 $ (223 ,594) (7.246) $(230,840) $(230,840) 309.893 $ 79.053 173.525 $ 252,578 - - ----,=_ r Totals u 1988 c c $ 284.234 26.825 12.680 7.940 4.730 $ 336.409 c c c o $ 61.705 17.706 20.923 33,331 126.563 $ 260.228 $ 76,181 $ 1. 917 276.551 $ 278,468 $ (202,287) c c c 3,727 $ (198,560) (7.802) c c c $(206,362) $(206,362) 276.551 $ 70,189 c c 103,336 $ 173,525 c c u I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF CHANGES IN FINANCIAL ALL PROPRIETARY FUND TYPES - ENTERPRISE YEAR ENDED DECEMBER 31, 1989 POSITION FUND S Totals 1989 1988 Sources of working capital Operations Net loss Item not requiring working capital Depreciation Total provided by operations $ (230,840) $ (206 .362) 312.792 278,468 $ 81,952 $ 72 . 1 06 467.629 2,866.628 $ 549.581 $2,938.734 476.244 2,868.615 $ 73,337 $ 70,119 Contribution of property and equipment Uses of working capital Acquisition of property and equipment Increase (decrease) in working capital Elements of change in working capital Cash and temporary investments $ 66,268 $ 75,009 Accrued interest receivable 2.282 430 Accounts receivable 28.860 23,400 Due from other governmental units (7.398) Inventory 2.484 (2.553 ) Accounts payable (547) (1,215) Due to other governmental units (23.425) (17.214) Accrued expenses (2.585) (340 ) Inc rease (decrease) in working capital $ 73,337 $ 70,119 See accompanying notes to financial statements. 9 CITY OF ANDOVER, MINNESOTA ~ l.I NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1989 u Note 1 - Summary of Significant Accounting Policies c 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 public and c The accounting policies of the City of Andover conform to generally accepted accounting principles. The following is a summary of the more significant policies: c A. Reporting Entity c 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 responsibility. c c 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. c As a result of applying criteria of Statement No. 3 certain organizations have been excluded from City's financial statements as follows: c c 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. All 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. c c c c 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. c c c 10 w I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 1 - Summary of Significant Accounting Policies (Continued) B. Fund Accounting 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: GOVERNMENTAL FUNDS 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. 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. 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. PROPRIETARY FUNDS Enterprise funds - Enterprise funds are used to account for operations that are (1) financed and operated in a manner similar to private ~usiness 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. 11 CITY OF ANDOVER. MINNESOTA [J NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 c Note 1 - Summary of Significant Accounting Policies (Continued) o B. Fund Accounting (Continued) FIDUCIARY FUNDS c 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. c 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 c C. Measurement Focus c 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. c c c 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. c c c 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. c 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. c c c 12 ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 1 - Summary of Significant Accounting Policies (Continued) 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 thei~ 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. 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. 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. 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. 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: Prior to January 1. the budget is adopted by the City Council. Formal budgetary integration is employed as a management control device during the year for the General Fund and the Certificates of Indebtedness Debt Service Fund. Formal budgetary integration is not employed for other funds. Budgets for the General Fund and the Certificates of Indebtedness Debt Service Fund. are adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts are as originally adopted. or as amended. Budget appropriations lapse at year end. unless appropriated to the subsequent year by Council action. 13 CITY OF ANDOVER. MINNESOTA u NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 ~ u Note 1 - Summary of Significant Accounting Policies (Continued) c 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. c c 2. Property taxes - Property tax levies are set by the City Council each year and are certified to the County for collection the following year. In Minnesota. counties act as collection agents for all property taxes. c The County spreads the levies over all taxable property in the City. Such taxes become receivables of the City as of January 1. c Property taxes are payable in equal installments by property owners to the County as follows: c Personal property - February 28 and June 30 c Real property - May 15 and October 15 o The County remits the collections to the City and other taxing districts three times year, on or before January 25, July 5, and December 4. c 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. c 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. c c 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. c c c c 14 u ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (COlITINUED) DECEMBER 31, 1989 Note 1 - Summary of Significant Accounting Policies (Continued) F. Assets and Liabilities (Continued) Special assessments receivable include the following components: Unremitted 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. Delinquent Deferred Other 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). 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. Depreciation of exhaustible 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: Collection and distribution systems Machinery Furniture and equipment 50 years 20 years 3-15 years No depreciation has been provided on general fixed assets. 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. G. Revenue, Expenditures and Expense 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. 15 CITY OF ANDOVER, MINNESOTA ~, ~ NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 ~ u Note 1 - Summary of Significant Accounting Policies (Continued) c G. Revenue. Expenditures and Expenses (Continued) c 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. o [j 3. Interest on investments is recorded as revenue in the period earned. c 4. State aids are recorded as revenue when allocations are made by a statutory formula. u 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. c 6. Utility service charges are recognized when earned. Unbilled utility service charges are included in receivables at year-end. u 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. c H. Accrued Vacation, Severance and Sick Pay c 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. to All employees are entitled to severance pay for a portion of their allowable accumulated sick leave at separation with a minimum of 2 years service. The liability for severance pay is accounted for the same as accrued vacation pay. w [C 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. ~ c ~ 16 ~ ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 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. Data 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 - 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 non-negotiable certificates of deposit with maturities within one year $ 7.910.536 4M Fund 419.331 Investments U.S. government obligations Commercial paper 2.002,765 7 .727 . 1 00 Petty cash and change funds 650 $18.060,382 In accordance with applicable Minnesota statutes. the City maintains deposits at depository banks authorized by the City Council. 17 - CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 Note 2 - Cash and Temporary Investments (Continued) 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. Minnesota Statutes authorize the City to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System. (d) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality. and maturing in 270 days or less. (e) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000.000; a primary reporting dealer in U.S. Government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or a bank qualified as a depositor. Statement 3 of the Governmental Accounting Standards Board defines three levels of credit risk for securities: (a) Securities that are insured or registered or for which the securities are held by the City or its agent in the City's name; (b) Securities that are uninsured and unregistered and are held by the counter- party's trust department or agent in the City's name; (c) Securities that are uninsured and unregistered and are helc by the counter- party. or by its trust department or agent. but not in the City's name. The City's investments are categorized as a Category C level of risk. amount and related market values of the securities are as follows: The carrying Carrying value Market value U.S. Government Obligations Commercial paper $2,002,765 7,727 ,100 $2,004,600 7.824.000 18 -I ~ ~ c o c c c c c c c c c c c c c c c u I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 3 - 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 $185.141 are shown as other special assessments receivable of the debt service funds as of year end. 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 4 - Due from Other Governmental Units The amounts due from other governmental units at year end are composed of the following: General Fund Anoka County Metropolitan Council $ 24,625 2,731 27,356 Debt service funds Anoka County share of costs $ 1,077.131 $1.104,487 Note 5 - Proprietary Fund Types Property and Equipment A summary of proprietary fund types property and equipment at year end follows: Furniture and equipment Machinery Collection and distribution systems Water Sewer Total $ 14.918 $ 7,192 $ 22.110 524.515 524.515 5,093,673 9,323.536 14,417,209 $5.633.106 $9.330,728 $14.963.834 (480.445) (1,226.324) (1.706.769) $5.152.661 $8.104,404 $13,257,065 Less accumulated depreciation Note 6 - 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 $ 522.707 $165.072 $ 687.779 581,838 40.307 622.145 101,813 11,015 112.828 965,863 47,311 1,013.174 $2.172,221 $263,705 $ -0- $2,435,926 19 CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 Note 7 - Bonds Payable The following is a summary of bond transactions of the City for the year: Outstanding Outstanding Type of Bond January 1 Issued Redeemed December 31 G.O. Improvement Bond of 1978 $ 50,000 $ 50.000 Certificates of Indebtedness 233,000 $110.000 73,000 $ 270.000 State Aid Street Bonds 810.000 100.000 710.000 G.O. Tax Increment Bonds 1.270.000 1.270,000 G.O. Improvement (special assessment) Bonds 24.509,100 3,200.000 968,700 26.740,400 $26.872,100 $3,310.000 $1,191,700 $28.990.400 Bonds payable at year end are comprised of the following individual issues: 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% $ 20.000 $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% 38.000 $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% 102,000 $110.000 Certificates of Indebtedness (12/11/89) due in annual installments of $22.000 through December 1, 1994; interest at 6.15% 110,000 270,000 $ 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% $ 260,000 $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% 450,000 710.000 $ 20 -~ o o c c c c c c c c c c c c c c c w c I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 Note 7 - Bonds Payable (Continued) 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% $205,000 Tax Increment Bonds of 1987B (12/1/87) due December 1. 1990; interest at 8.10% 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% $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% $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% 21 $ 1.065,000 205.000 $ 1,270.000 $ 860,000 19.600 905,000 460.000 170.000 140.000 125,000 58,800 190,000 CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 7 - Bonds Payable (Continued) G.O. Improvement (special assessments) Bonds (Continued) $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% $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% $5,000,000 General Obligation Improvement Bonds of 1987A (8/1/87) due August 1. 1990; interest at 5.25% $1.550.000 General Obligation Improvement Bonds of 1987B (12/1/87) due December 1, 1990; interest at 6.00% $5,800.000 General Obligation Improvement Bonds of 1988 (8/1/88) due August 1. 1991; interest at 6.00% $3.200,000 General Obligation Improvement Bonds of 1989 (7/11/89) due in varying annual installments through August 1. 2001; interest at 6.75% Total all bonds 22 ~ U $ 240.000 u c c c c 1.965.000 1,545,000 c 72,000 r! .. c 1.955.000 ~ .. 2.485 ,000 c c c c 5,000.000 1,550.000 5.800,000 3,200.000 $26,740.400 $28.990.400 c c c c o - --~----=-- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 7 - Bonds Payable (Continued) The annual requirements to amortize all debt outstanding as of year end. including interest payments of $8.519.769 are as follows: G.O. Certificates Improvement of State Aid G. O. Tax (special Indebtedness Street Increment assessment) 1990 $ 110.046 $ 150,800 $ 339.235 $ 9.411.517 1991 84.389 143,900 134.938 8.274,830 1992 61.212 136,800 136,962 2.029,137 1993 24,783 129.500 138,463 2.076.581 1994 23.397 132.025 134.480 2.118.774 1995 63.425 135 . 43 0 1,964.510 1996 - 2000 170.300 669.528 6.760.353 2001 - 2005 676,427 1.278.427 $ 303,827 $ 926.750 $2,365,463 $33,914,129 $12.389.593 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. Note 8 - Long-term Payables Included in the General Long-term Debt Account Group are the following long-term pay abies: 1. Special assessments on City property of $252,951 are payable in varying amounts at annual interest rates of 6.25% to 10.7% through 2001. 2. Installment contracts of $15.267 for equipment purchases with interest at varying amounts. Principal Interest Total $ 1.798 $ 7.273 926 7.214 195 3,699 $ 2,919 $18,186 Commis sion. with Interest Total $ 357 $ 4,300 148 2.873 $ 505 $ 7,173 1990 1991 1992 $ 5.475 6.288 3.504 $15,267 3. Payable of $6.668 to the Metropolitan Waste Control interest at 5.36% per annum. Principal 1990 1991 $ 3,943 2.725 $ 6,668 23 CITY OF ANDOVER. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 9 - 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 $26,872.100 $3,310.000 $1.191.700 $28.990,400 Assessments on City property 234,495 30.568 12.112 252.951 Contracts payable Equipment purchases 20.012 4.745 15 . 26 7 Due to Metropolitan Waste Control Commission 10.409 3.741 6,668 Accrued vacation pay Governmental funds 41.197 13.166 54,363 $27,178,213 $3,353,734 $1,212,298 $29.319,649 Note 10 - 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 (PEW) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All 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 PERF for the year, was $585.423. The City has no employees as members of PEPFF. The City's total payroll was $$649.406. PERA provides retirement benefits as well as disability benefits to members. and benefits to survivor upon death of eligible members. Benefits are established by State Statute. and vest after three 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. Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of step~rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2. the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members. the annuity accrual rate is 2.5 percent for each of the members whose annuity is calculated using Method 1. and for all PEPFF members. a full annuity is available when age plus years of service equal 90 . 24 ~ ~ ~ ~ U c c c c c c c c c c c c c c . ~ c u II A. Plan Description (Continued) 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. I I I I II I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 Note 10 - Defined Benefit Pension Plans - Statewide 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. According to Minnesota Statutes Chapter 356.215. Subd. 4(g) the date of full funding required for the PERF and the PEPFF is the year 2020. As part of 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 combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Sta tutory rates Employee Employer Required rates PERF (Basic and Coordinated Plans) PEPFF 4.67% 12.00% 9.42% 16.69% 4.27% 8.00% Total contributions made by the City during the year were: Amount Employees Employer Percentage of covered payroll Employees Employer PERF $ 24.065 $ 25,568 4.37 4.11 The City's contribution for the year to the PERF represented 0.03 percent of total contributions required of all participating entities. 25 CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 Note 10 - Defined Benefit Pension Plans - Statewide - (Continued) 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 the 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. The pension benefit obligations of the PERA as of June 30. 1989. are shown below: PERF PEPFF (in thousands) Total pension benefit obligation Net assets available for benefits, at cost (market values for PERF = $3.801.129; PEPFF = $ 694.227) $ 582,299 $3,714.257 2.934.977 637,868 Unfunded (assets in excess of) pension benefit obligation $ 779.280 $ (55.569) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30. 1989. Net assets available to pay pension benefits were valued as of June 30, 1989. 2. Changes in Actuarial Methods and Benefit Provisions A number of benefit improvements became effective during fiscal year 1989. Some of the major improvements affecting each fund include a reduction in the period required for vesting from five years to three years; an option for members hired before July 1. 1989, to have their annuity calculated under a level benefit accrual formula; the interest rate credited on refunds of member contributions increased from 5 percent to 6 percent; and the provision for an automatic bounce back feature for all joint and survivor annuity options. In the PEPFF. age and/or service requirements were reduced for eligibility for a normal retirement annuity. and early retirement annuity, and for certain disability and survivor benefits. 26 -~ u w u c c c c c c c c c c c c c c c [J I -- I CITY OF ANDOVER. MINNESOTA I NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 I Note 10 - Defined Benefit Pension Plans - Statewide - (Continued) C. Funding Status and Progress (Continued) I 2. Changes in Actuarial Methods and Benefit Provision (Continued) I For each fund. there were changes in the actuarial assumptions used in the annual actuarial valuation. Effective for all funds beginning in fiscal year 1989. the pre-retirement interest rate assumption was increased from 8 percent to 8.5 percent. Additionally, for the PERF and the PEPFF, the amortization target date has been changed to 2020. Shown below are the effects on the pension benefit obligation of these changes in plan benefits and actuarial assumptions. I I Increase (decrease) in pension benefit obligation due to: I PERF PEPFF (in thousands) I Changes in plan benefits Changes in actuarial assumptions $127.472 (84,154) $ 27.851 (25.963) I Net increase in pension benefit obligation $ 43.318 $ 1,888 I D. Ten-Year Historical Trend Information I Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1989. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. I E. Related Party Investments I As of June 30. 1989, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. Note 11 - Fund Equity I The year-end reservations of fund balance/retained earnings are: I Governmental Fund Types Debt service funds Debt service Capital proje9t funds Encumbrances $12.389,593 I 1,032.315 Total I $13.421,908 I 27 CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 Note 12 - Segment Information for Enterprise Funds Segment information for the City's two enterprise funds for the year is as follows: Water Sewer Total Operating revenue $ 234.614 $ 195,773 $ 430.387 Depreciation 127,456 185.336 312.792 Operating loss 24 . 9 80 208.335 233,315 Operating transfers - Out 3.393 3.853 7.246 Net loss 19.926 210.914 23 0, 840 Property. plant and equipment Additions 258,515 217.729 476,244 Working capital 192.196 48.224 240.420 Contributions of plant and equipment 249.952 217.677 467.629 Total assets 5,355.526 8.193.710 13.549.239 Fund equity Contributed 5.142.509 8.102.398 13.244,907 Retained earnings 202,348 50.230 252.578 Note 13 - Defined Contribution Pension Plan - Fire Relief Association The Andover Fire Relief Association provides pension benefits for the members of the City of Andover Volunteer Fire Department. Full pension benefits are paid to retired members who are 50 years of age and have a minimum of 20 years service and 10 years of membership in the Association. Reduced benefits are paid to retiring members with between 10 and 20 years of service. The plan is a defined contribution plan. under which the net assets belong to the members and are individually accounted for. In addition to internally generated funds, the Association receives annual state aid, which in 1989 amounted to $22.692. The City's contribution under the plan is $250 per member per year. During 1989. the City contributed $7.500 to the Association. 28 u u u c c c c c c c c c c c c c c c ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 Note 14 - Contingent Liabilities The City participated in federally assisted grant programs. principal of which was the Community Development Block Grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs 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. Note 15 - Subsequent Events As of February 1. 1990, the City called for redemption of the following bond issues: Issue G.O. Improvement Bonds of 1976A. issued 8/1/76 G.O. Improvement Bonds of 1976B. issued 11/1/76 G.O. Improvement Bonds of 1977B. issued 10/1/77 G.O. Improvement Bonds of 1980B. issued 8/1/80 Bonds payable December 31 $ 860,000 19.600 460,000 58,800 $1.398,400 Cash and investments of $1.861.573 was available at year-end in the respective debt service accounts for payment of the debt called. 29 CITY OF ANDOVER. MINNESOTA GENERAL FUND BALANCE SHEET DECEMBER 31. 1989 (with comparative amounts for December 31. 1988) 1989 ASSETS Cash and temporary investments Accrued interest receivable Taxes receivable Unremitted Delinquent Accounts receivable Due from other governmental units c c c 1988 c c c $699.361 $803.843 5,507 3,034 13 .065 15.196 35,251 27.699 16.622 8.7 66 27.356 3,895 $797.162 $862.433 Total assets LIABILITIES AND FUND BALANCE Liabilities Accounts payable Accrued expenses Due to other governmental units Deferred revenue Total liabilities $ 59.274 27.962 59,772 35,251 $182,259 Fund balance Unreserved Designated for subsequent year's expenditures Undesignated $614,903 $614.903 Total liabilities and fund balance $797,162 30 c c c c $ 80,811 17,656 4.267 27,699 $130.433 c c c $ 42.900 689.100 $732.000 $862.433 c c c c c o I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUE. EXPENDITURES AND FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1989 (with comparative actual amounts for the year ended December 31. 1988) 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 Recycling 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 1989 Budget Actual 1988 Actual $ 670,726 $ 712.017 $ 713,219 270.976 259.083 236,555 881,482 659.330 559.246 38,170 58.754 31, 404 50.100 51,614 45.049 77,700 73,909 84.680 $1.989.154 $1.814.707 $1.670.153 70.000 70,545 94.738 $2.059,154 $1,885 ,252 $1,764.891 $ 602,154 $ 645,521 $ 521,775 778,875 705.415 496,710 377,496 296.275 333.978 29,366 18.658 12,030 207.859 218.571 240 .574 20.112 36 .700 97,797 136.209 $2,032.450 $2.002.349 $1.741,276 22,400 101.295 $2,054.850 $2,002,349 $1,842,571 $ 4,304 $ (117.097) $ (77,680) 732,000 809,680 $ 614.903 $ 732.000 31 CITY OF ANDOVER, MINNESOTA GENERAL FUND SCHEDULE OF REVENUE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1989 (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 Recycling Other Charges for services General government Street lights 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 Park Fund Administrative Trust Fund Total revenue and other sources Budget $ 645.726 25.000 $ 670.726 $ 14,750 256.226 $ 270,976 $ 360,457 476.065 22.260 22,700 $ 881. 482 $ 32.670 5.500 $ 38,170 $ 50.100 $ 35.000 20.000 2.700 20.000 $ 77.700 $1.989,154 $ $ 70.000 70.000 $2.059.154 32 1989 Actual $ 691.851 20,166 $ 712.017 $ 15.647 243 ,43 6 $ 259,083 $ 350.045 228.414 16.441 22.260 22,692 14,940 4,538 $ 659.330 $ 20.808 33 ,971 3,975 $ 58,754 $ 51,614 $ 30,016 3.844 40,049 $ 73.909 $1.814.707 $ $ 70,545 70,545 $1.885 ,252 -- -----;;=----1- 31, 1988) u o c c c c c c c c c c c ~ ~ ~ ~ C ~ 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 $ 19,084 8,225 4.095 $ 31,404 $ 45.049 $ 37.233 22,397 4.489 6,594 13,967 $ 84,680 $1,670,153 $ 40.446 54,292 $ 94,738 $1,764,891 I CITY OF ANDOVER, MINNESOTA I GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 1989 I (with comparative actual amounts for the year ended December 31, 1988) 1989 1988 Budget Actual Actual I General government Council Personal services $ 26 . 821 $ 24.410 $ 17.252 I Supplies 200 743 739 Other services and charges 9.100 5,548 4.958 $ 36.121 $ 30,701 $ 22.949 I Mayor Personal services $ 4.550 $ 4.200 $ 3.870 Other services and charges 500 2,273 I $ 5.050 $ 4.200 $ 6,143 Committees I Personal services $ 500 Operating expenses 1.050 $ 61 $ 77 $ 1.550 $ 61 $ 77 I Elections Personal services $ 7.411 Supplies 507 I Other services and charges $ 6 156 Capital outlay $ 5,000 $ 5.000 $ 6 $ 8,074 I Newsletter Personal services $ 1.500 $ 935 $ 725 Operating expenses 4,650 7.975 5.541 I $ 6,150 $ 8,910 $ 6. 266 Administration I Personal services $ 68.713 $ 74.716 $ 53,834 Supplies 4.190 2.553 2.489 Other services and charges 5.941 3.978 I Capital outlay 1,890 3,753 1,560 $ 74.793 $ 86,963 $ 61.861 Financial administration I Personal services $ 50.830 $ 38.338 $ 9,092 Supplies 105 1,364 134 Other services and charges 210 2.409 115 I Capital outlay 525 1.158 260 $ 51.670 $ 43 , 26 9 $ 9,601 Accounting I Personal services $ 62.727 $ 58.289 $ 51,337 Supplies 4.358 1.407 4.382 Other services and charges 736 1.117 583 I Capital outlay 1,680 502 $ 69.501 $ 60.808 $ 56,804 I 33 CITY OF ANDOVER. MINNESOTA U GENERAL FUND U SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (CONTINUED) YEAR ENDED DECEMBER 31. 1989 (with comparative actual amounts for the year ended December 31, 1988) C 1989 1988 Budget Actual Actual General government (continued) C Assessing Other services and charges $ 23 , 1 00 $ 25.465 $ 21,790 Consulting staf f C Auditing $ 11,000 $ 12.392 $ 11.095 Legal 49,300 84.320 57,390 $ 60,300 $ 96.712 $ 68,485 C Planning and zoning Personal services $ 72,664 $ 60.241 $ 51,450 C Supplies 2. 80 0 3.355 3.028 Other services and charges 2,678 3.995 3.162 Capital outlay 1,600 2,951 2.432 C Other 1. 050 130 $ 80,792 $ 70.542 $ 60.202 Buildings C Administration building Personal services $ 3,840 $ 4.237 $ 5,876 Supplies 6,090 5,432 6.420 C Other services and charges 13 . 1 09 27 . 827 27.153 Capital outlay 17.960 34.822 40.597 $ 40,999 $ 72.318 $ 80,046 Fire department building C Supplies $ 300 $ 2,324 $ 3.007 Other services and charges 15.294 9.876 6.086 C Capital outlay 3,990 1,121 1,058 $ 19,584 $ 13.321 $ 10,151 Public works building C Personal services $ 434 $ 6.145 $ 6.862 Supplies 5,466 2.83 8 5.382 Other services and charges 8.787 11.623 7.197 ~ Capital outlay 11,000 8,677 6,716 $ 25,687 $ 29.283 $ 26,157 Senior citizen center ~ Personal services $ 1.470 $ 1.788 $ 1.748 Supplies 2,495 402 1,392 Other services and charges 5.885 5,007 4.049 ~ Capital outlay 630 $ 10,480 $ 7,197 $ 7,189 ~ ~ 34 m -~~ ~ ~'---=---~-~ --- ----------- I CITY OF ANDOVER. MINNESOTA I GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (CONTINUED) YEAR ENDED DECEMBER 31, 1989 I (with comparative actual amounts for the year ended December 31. 1988) 1989 1988 Budget Actual Actual I General government (continued) Buildings ( continued) Storage building I Supplies $ 315 $ 628 Other services and charges 841 $ 183 Capital outlay 4.200 7.704 320 I $ 5.356 $ 7,887 $ 948 Total buildings $102.106 $130,006 $124,491 I Engineering Personal services $ 72.717 $ 73.506 $ 60,334 Supplies 3.675 4.103 2.912 I Other services and charges 7,629 8. 1 05 5.331 Capital outlay 2.000 2,164 6,455 $ 86,021 $ 87 , 878 $ 75,032 I Total general government $602.154 $645.521 $521,775 Public safety I Police protection Other services and charges $345,823 $365,609 $206,846 Capital outlay 1,000 199 I $346,823 $365,609 $207,045 Fire protection Personal services $104,718 $ 65 ,769 $ 58.052 I Supplies 15 .745 10.360 13.656 Other services and charges 49 .506 43.976 12.564 Relief Association 33.700 30,192 26,180 I Capital outlay 28,500 20,524 44,260 $232.169 $170,821 $154,712 I Rescue service Personal services $ 14.550 $ 13.932 $ 13 .543 Supplies 2,965 1,718 1. 833 Other services and charges 13,526 7.813 4,488 I Capital outlay 2,000 1.334 $ 33,041 $ 23.463 $ 21.198 I Protective inspection Personal services $105.776 $107,463 $ 76.841 Supplies 5,150 6.5 29 6,751 Other services and charges 14.656 3,210 14.426 I Capital outlay 15,625 15,310 4,133 Other 1,050 977 969 $142,257 $133,489 $103.120 I I 35 , Sanitation Storm sewers Personal services Supplies Other services and charges Capital outlay $ 17.671 4.200 2,760 1,050 $ 25.681 $ 13,666 896 429 200 $ 15,191 $ 7,116 997 364 59 $ 8.536 o c c c c c c c c c c c ~ c c c m m m CITY OF ANDOVER, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 1989 (with comparative actual amounts for the year ended ( CONT INUED) December 31. 1988) Total public safety 1989 1988 Budget Actual Actual $ 2.485 $ 2.082 $ 1,105 10,000 $ 12,485 $ 2.082 $ 1,105 $ 212 $ 100 173 12,000 9.566 $ 9,530 $ 12,100 $ 9.951 $ 9.530 $778.875 $705.415 $496,710 Public safety (continued) Civil defense Other services and charges Capital outlay Animal control Personal services Supplies Other services and charges Public works Streets and highways Personal services Supplies Other services and charges Capital outlay Total public works $ 84.784 $ 61, 9 88 $ 52.428 20,985 14.119 17,386 21 ,75 2 23 .133 9,727 117,000 31, 1 08 88,661 $244,521 $130,348 $168,202 $ 40,794 $ 41,471 $ 30,191 29.715 37.233 35,987 19,283 16.376 5,706 7,000 1.333 56.989 $ 96,792 $ 96,413 $128,873 $ 15 , 000 $ 20,340 $ 14,529 24.570 $ 15,000 $ 44,910 $ 14,529 $ 13.010 $ 15,203 $ 14.055 3 . 93 7 5.105 3.656 236 2.999 900 4,000 1,297 3 .763 $ 21.183 $ 24,604 $ 22,374 $377 ,496 $296,275 $333,978 Snow and ice removal Personal services Supplies Other services and charges Capital outlay Street lighting Other services and charges City Billable Street signs/signals Personal services Supplies Other services and charges Capital outlay 36 =-- ------l,--- - CITY OF ANDOVER, MINNESOTA ' GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (CONTINUED) YEAR ENDED DECEMBER 31, 1989 ' (with comparative actual amounts for the year ended December 31, 1988) 1989 1988 Budget Actual Actual ' Sanitation (Continued) Trees and weed control Personal services $ 2,270 $ 2,252 $ 3,082 Supplies 598 239 101 Other services and charges 317 976 25 Capital outlay 500 286 ' $ 3,685 $ 3,467 $ 3,494 Total sanitation $ 29,366 $ 18,658 $ 12,030 ' Parks and recreation Personal services $ 50,725 $ 82,658 $ 65,939 Supplies 20,745 21,895 19,300 ' Other services and charges 10,045 12,756 7,431 Community education programs 38,194 35,663 29,120 Assessments 26,000 17,792 12,854 Capital outlay 62,150 47,807 105,930 ' $ 207,859 $ 218,571 $ 240,574 Recycling Personal services $ 7,947 ' Supplies 1,411 Other services and charges 3,638 Capital outlay 7,116 $ 1 0- $ 20,112 $ -0- Unallocated CDBG $ 45,540 $ 11,178 ' Metropolitan Waste Control Commission $ 4,300 4,300 4,300 Insurance 23,000 31,959 74,997 LRRWMO 1 1,788 1,703 ' Sidewalk 12,910 Improvement projects 2,000 3,838 6,549 Site Q 8,501 9,714 ' Crooked Lake cleanup 1,600 Miscellaneous 1,871 7,358 Escrow refund 7,500 Tax increment financing 4,000 ' $ 36,700 $ 97,797 $ 136,209 Total expenditures $2,032,450 $2,002,349 $1,741,276 ' Other uses Transfers to other funds Certificates of Indebtedness Fund $ 22,400 $ 89,663 ' Unfinanced Capital Projects Fund 11,632 $ 22,400 $ -0- $ 101,295 Total expenditures and other uses $2,054,850 $2,002,349 $1,842,571 37 CITY OF ANDOVER. MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31. 1989 (with comparative totals for December 31. ASSETS Cash and temporary investments Accrued interest receivable Total assets FUND BALANCE Fund balance Unreserved-Undesignated Total fund balance LRRWMO $ 4.442 85 $ 4.527 $ 4.5 27 $ 4.5 27 38 Drainage and Mapping $54.999 857 $55,856 $55.856 $55,856 1988) Totals 1989 1988 $59.441 942 $60.383 $60.383 $60,383 ----::~------ $55.078 227 $55,305 $55,305 $55.305 w o c c c c c c c c ~ ~ ~ ~ w w m m u I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE. EXPENDITURES AND FUND BALANCE YEAR ENDED DECEMBER 31, 1989 (with comparative totals for year ended December 31. 1988) Drainage and Totals LRRWMO Mapping 1989 1988 Revenue Special assessments $ 4 $ 4 $ 352 Interest $ 316 3,653 3.969 2,438 Total revenue $ 316 $ 3,657 $ 3.973 $ 2.790 Other sources Transfers from other funds 10.575 10,575 18.332 Total revenue and other sources $ 316 $14,232 $14,548 $21.122 Expenditures Other services and charges $ -0- $ 9.470 $ 9.470 $ -0- Increase in fund balance $ 316 $ 4,762 $ 5 . 07 8 $21,122 Fund balance January 1 4.211 51,094 55,305 34,183 Fund balance December 31 $ 4,527 $55,856 $60.383 $55,305 39 THIS PAGE LEFT BLANK INTENTIONALLY 40 - ------ -----;i~ --~- ~ ~ ~ u c C M .. c c c c c ~ ~ C ~ ~ .. ~ W ~ ~ LW I: -=-=- - I CITY OF ANDOVER, MINNESOTA I DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31. 1989 I (with comparative totals for December 31. 1988) I 1978 State Tax Special G.O. Aid Increment Assessment Totals Bonds Bonds Bonds Bonds 1989 1988 I ASSETS I Cash and temporary investments $109.309 $13.939 $448.996 $11.573.469 $12.145.713 $ 9.695.826 Accrued interest receivable 2.049 5,426 204.218 211.693 55.305 I Taxes receivable Unremitted 12.273 12.273 4,365 Delinquent 30.759 30.759 13.803 I Special assessments receivable Unremitted 27 . 850 27.850 53.383 I Delinquent 303,265 303,265 163.725 Deferred 10,077 .480 10.077.480 10.702.893 Other 185,141 185,141 335.617 Due from other I governmental units 1,077 , 131 1. 07 7 . 131 258,017 $111.358 $13.939 $497.454 $23,448,554 $24,071,305 $21.282,934 Total assets I LIABILITIES AND FUND BALANCE I Liabilities Accounts payable $ 7 . 936 $ 7,936 $ 12.543 I Deferred revenue $ 30,759 11.643.017 11,673,776 11.474.055 Total liabilities $ 30,759 $11.650.953 $11.681.712 $11.486,598 Fund balance - I Reserved for debt service $111,358 $13.939 466,695 11,797,601 12,389,593 9.796,336 I Total liabilities and fund I balance $111.358 $13,939 $497,454 $23,448.554 $24,071,305 $21.282.934 I I 41 I CITY OF ANDOVER. MINNESOTA u DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE YElIR ENDED DECEMBER 31. 1989 (with comparative totals for year ended December 31. 1988) u 1978 G. O. Bonds Certificates of Indebtedness c c Revenue Property taxes State aid State credits Special assessments Interest Land sal es Other 25.222 c c c $ 2,476 $ 53,5 27 7.728 Total revenue $ 10,204 $ 78.749 Other sources Bond proceeds Transfers from other funds General Fund Debt service funds Capital project funds Enterprise funds Total other sources c Total revenue and other sources $ 7,246 $ 7.246 $ 10,204 $ 85,995 $ 50,000 $ 73.000 1.400 12.995 229 $ 51.629 $ 85.995 c c c Expenditures Redemption of bonds Interest Other Fund balance January 1 152,783 -0- c c ~ ~ ~ C Total expenditures Other uses Transfers to other funds Debt service funds Capital projects funds Total other uses Total expenditures and other uses Increase (decrease) in fund balance $ 51,629 $(41,425) $ 85,995 $ -0- Fund balance December 31 $111,358 $ -0- C 42 m ~-_~----- -- -- Ii ----=-: -~ I I I I I I I I I I I I I I I I I I - I State Aid Bonds $171.825 $171,825 $171.825 $100,000 57.475 666 $158.141 $158,141 $ 13,684 255 $ 13,939 Tax Increment Bonds $356.070 50.558 19.078 39.379 $465 .085 $465 .085 $119.235 781 $120.016 $120,016 $345.069 121,626 $466,695 Special Assessment Bonds $ 3.963,445 781.902 8,451 $ 4.753, 798 $ 24.800 259,657 12.162 $ 296.619 $ 5,050,417 $ 968.700 1,529.772 16,359 $ 2.514,831 $ 259.657 $ 259,657 $ 2.774,488 $ 2.275.929 9.521,672 $11,797,601 43 1989 $ 412.073 171.825 75.780 3,963.445 808.708 39,379 8.451 $ 5.479,661 $ 24,800 259.657 12.162 7.246 $ 303 . 865 $ 5,783.526 $ 1.191,700 1,720.877 18.035 $ 2.930,612 $ 259.657 $ 259,657 $ 3.190,269 $ 2.593.257 9.796,336 $12.389.593 Totals 1988 $ 90,073 79,725 23.121 3.102.549 544.034 $3,839.502 $ 89,663 962.196 695.896 7,642 $1.755,397 $5,594,899 $1.062.700 1,405,214 6.414 $2,474.328 $ 962.196 7,628 $ 969,824 $3.444.152 $2,150,747 7.645,589 $9 , 796 .336 ClTY OF ANDOVER. MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31. 1989 (with comparative totals for December 31. ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Deferred special assessments receivable Due from other governmental units Total assets LIABILITIES AND FUND BALANCE Liabilities Accounts payable Contracts payable Deposit payable Deferred revenue Total liabilities Fund balance Reserved for debt service Reserved for encumbrances Unreserved - Undesignated Total liabilities and fund balance 44 1988) Equipment $ 23.079 443 $ 23.522 $ 23.522 $ 23.5 22 $ 23,522 1987 Equipment $ 24.394 468 $ 24.862 $ 24,862 $ 24,862 $ 24,862 ---~-=~= ~ ~ o o c c c c c o c c c c ~ c c c m o I I I I I I I I I I I I I I I I I I - I Tax State Special Totals Increment Park Aid Assessment 1989 1988 $ 48.444 $ 30.878 $138,532 $3.662,276 $3.927,603 $2,127.713 1.204 965 6,623 57.406 67.109 7.729 100 100 100 537.475 495,740 $ 49,648 $ 31.843 $145.155 $3,719.782 $3.994.812 $3,168,757 $ 5.686 40.657 $ 48. 1 00 80.645 $ 53 , 7 86 125.046 $ 3 .744 $ 3.744 $ 46.343 $ 128.745 $ 178,832 $1.032.315 2,783,665 $3.815,980 $3.994,812 $ 11.511 87.301 $ 98.812 $145.155 $1.020.804 2,570,233 $3.591,037 $3,719,782 $ 28.099 $ 28.099 $ 31.843 $ 49.648 $ 49,648 $ 49.648 45 , $ 62,227 334.781 6.000 537,475 $ 940.483 $ 227,651 2,000.623 $2,228.274 $3.168,757 CITY OF ANDOVER. MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE YEAR ENDED DECEMBER 31. 1989 (with comparative totals for year ended December 31, 1988) Revenue 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 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 Fund balance December 31 46 Equipment $ 1.703 $ 1, 703 $ 1.703 $ 1.703 21.819 $ 23,522 1987 Equipment $ 1,801 6.000 $ 7.801 $ 7.801 $ 7,801 17,061 $ 24.862 -~ -~--::,-=--- ~ o c c c c c c c c D c c ~ ~ m m m c . ... I I I Tax State Special Totals I Increment Park Aid Assessment 1989 1988 I $ 9.300 $ 439.415 $ 439,415 28.864 115.160 I $ 21.815 21,815 51,065 $ 2.031 4, 241 33.015 $ 341.899 384,690 220.685 24.708 70.081 I 2,965 8.965 $ 2,031 $ 26,056 $ 475.395 $ 341.899 $ 854.885 $ 519,863 I $3.145,788 $3,145.788 $ 6,219.350 11.632 I 7.628 1.199.103 1,199,103 94.325 $4.344.891 $4.344.891 $ 6,332,935 I $ 2.031 $ 26,056 $ 475.395 $4.686 , 790 $5,199,776 $ 6,852.798 I $ 57,822 $ 71.066 $ 726.405 $1.465.311 $2.320.604 $ 7.300.597 34.114 34.114 30.987 $ 57,822 $ 71,066 $ 726,405 $1.499,425 $2,354.718 $ 7.331,584 I $ 40.446 I $ 10,575 $ 10.575 18,332 12.162 12.162 695.896 1.199.103 1,199.103 94.325 35,512 35,512 178,933 I $1.257,352 $1,257.352 $ 1,027.932 $ 57.822 $ 71.066 $ 726.405 $2,756,777 $3,612.070 $ 8,359,516 I $ (55.791) $(45.010) $(251.010) $1.930,013 $1.587.706 $(1.506,718) I 105,439 73.109 349,822 1,661.024 2,228.274 3.734.992 $ 49.648 $ 28.099 $ 98,812 $3,591,037 $3,815.980 $ 2,228,274 I I 47 I Sewer 1989 1988 c c c c c c c c c c c c c ~ ~ o ~ m ~ CITY OF ANDOVER. MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31. 1989 (with comparative totals for December 31. 1988) Totals Water AS SETS Current assets Cash and temporary investments $ 146.653 $ 16.518 $ 163.171 $ 96.903 Accrued interest receivable 2,451 390 2,841 559 Accounts receivable 48.301 72,398 120.699 91. 839 Inventory 5.460 5.460 2,976 Total current assets $ 202.865 $ 89.306 $ 292,171 $ 192,277 Property and equipment Furniture and equipment $ 14.918 $ 7.192 $ 22.110 $ 13,495 Machinery 524.515 524.515 524.515 Collection and distribution systems 5.093,673 9.323,536 14,417.209 13.949,580 $5.633.106 $9.330.728 $14.963.834 $14,487,590 Less accumulated depreciation (480,445 ) (1.226 ,324) (1,706,769) (1,393,976) Property and equipment-Net $5.152.661 $8,104.404 $13.257.065 $13.093,614 Total assets $5.355,526 $8.193,710 $13,549.236 $13.285,891 LIABILITIES AND FUND EQUITY Current liabilities Accounts payable Accrued expenses Due to other governmental units Total current liabilities Total liabilities and fund equity $ 3,605 $ 1,514 $ 5,119 $ 4,571 6.180 3,366 9.546 3,409 884 36,202 37.086 17.214 $ 10.669 $ 41 ,082 $ 51,751 $ 25 , 194 $5.142.509 $8.102.398 $13.244.907 $13,087,172 202.348 50.230 252,578 173,525 $5.344.857 $8.152.628 $13,497.485 $13.260,697 $5.355,526 $8.193,710 $13.549.236 $13.285.891 Fund equity Contributed Retained earnings Unreserved - Undesignated Total fund equity 48 -----=---:;~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA ENTERPRI SE FUNDS COMBINING STATEMENT OF REVENUE. EXPENSE AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1989 (with comparative totals for 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 (loss) before depreciation Less depreciation On assets acquired with own funds On assets acquired from contributions Operating loss Other income Interest income 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 earnings Retained earnings January 1 Retained earnings December 31 Water Sewer $185.382 29.710 12.800 6.454 268 $234,614 $ 188.626 7.147 $ 195,773 $ 53.318 17.943 25.164 35,713 $132,138 $ 29.623 3.820 5,148 180.181 $ 218,772 Totals 1989 1988 $ 374.008 29 .71 0 12.800 13.601 268 $ 430,387 $ 82,941 21.763 25,164 40,861 180,181 $ 350.910 $ 284.234 26.825 12.680 7.940 4,730 $ 336.409 $ 61.705 17.706 20,923 33,331 126,563 $ 260.228 $102.476 $ (22,999) $ 79.477 $ 76.181 $ 1.857 $ 1.042 125,599 $127,456 184.294 $ 185,336 $ 2.899 309,893 $ 312,792 $ 1.917 276,551 $ 278.468 $(24,980) $(208,335) $(233,315) $(202.287) $ 8,447 $ 1. 274 $ 9,721 $ 3,727 (3,393) (3,853) $(16.533) $(207.061) $(223 ,594) $(198.560) (7.802) (7,246) $(19,926) $(210,914) $(230.840) $(206,362) $(19.926) $(210,914) $(230,840) $(206.362) 125,599 184.294 309.893 276,551 $105.673 $(26,620) $ 79.053 $ 70,189 96,675 76,850 173,525 103,336 $202.348 $ 50,230 $ 252,578 $ 173,525 49 CITY OF ANDOVER. MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1989 (with comparative totals for year ended December 31. 1988) Totals Wat er Sewer 1989 1988 Sources of working capital Operations Net loss $(19.926) $(210.914) $ (230.840) $ (206.362) Item not requiring working capital - Depreciation 127.456 185.336 312.792 278.468 $107.530 $ (25.578) $ 81.952 $ 72. 1 06 Contribution of property and equipment 249.952 217,677 467,629 2,866,628 $357.482 $ 192.099 $ 549.581 $2.938.734 Uses of working capital Acquisition of property and equipment 258.515 217,729 476.244 2.868,615 Increase (decrease) in working capital $ 98.967 $ (25,630) $ 73.337 $ 70.119 Elements of change in working capital Cash and temporary investments $ 77.920 $ (11,652) $ 66.268 $ 75.009 Accrued interest receivable 2,070 212 2.282 430 Accounts receivable 21.702 7. 15 8 28.860 23,400 Due from other governmental units (7.398) Inventory 2.484 2.484 (2.553) Accounts payable 112 (659) (547) (1,215) Due to other governmental units (4,437) (18,988) (23 .425) (17,214) Accrued expenses (884 ) (1,701) (2.585) (340 ) Increase (decrease) in working capital $ 98.967 $ (25,630) $ 73,377 $ 70,119 50 -~ -- ~ m c c c c c c c c c c c c c c o c ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA WATER FUND BALANCE SHEET DECEMBER 31. 1989 (with comparative amounts for December 31. 1988) 1989 1988 ASSETS Current assets Cash and temporary investments Accrued interest receivable Accounts receivable Inventory Total current assets $ 146.653 $ 68.733 2.451 381 48.301 26.599 5.460 2.976 $ 202,865 $ 98,689 $ 14,918 $ 6.355 524.515 524,515 5.093,673 4.843.721 $5.633.106 $5.374.591 (480,445 ) (352,988) $5.152,661 $5.021,603 $5.355,526 $5,120.292 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 Due to other governmental units Total current liabilities $ 3,604 $ 3.716 6,181 1.744 884 $ 10,669 $ 5,460 $5.142.509 $5.018.157 202,348 96.675 $5,344.857 $5.114,832 $5,355.526 $5,120,292 Fund equity Contributed Retained earnings Unreserved - Undesignated Total fund equity Total liabilities and fund equity 51 CITY OF ANDOVER, MINNESOTA WATER FUND STATEMENT OF REVENUE. EXPENSE AND RETAINED EARNINGS YEAR ENDED DECEMBER 31. 1989 (with comparative amounts for 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 Operating income before depreciation Less depreciation On assets acquired with own funds On assets acquired from contributions Operating loss Other income Interest income 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 52 1989 $185.382 29.710 12.800 6.454 268 $234.614 $ 53.318 17.943 25.164 35,713 $132,138 $102.476 $ 1,857 125,599 $127.456 $(24.980) 8,447 $ (16.533) $ (3.393) $ (3,393) $(19,926) $(19,926) 125,599 $105.673 96,675 $202,348 ----_._--~ - ~ . c 0 C 1988 C $126,594 C 26,825 12.680 3.791 2.007 C $171,897 $ 39.732 C 14.519 20.923 C 27.400 $102.574 $ 69,323 C $ 863 C 109,522 $110,385 $ (41.062) C 2,538 ~ $ (38.5 24) $ (3.576) ~ (72) $ (3.648) C $(42,172) $(42.172) C 109.522 m $ 67,350 29.325 tj $ 96.675 C m --.-- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA WATER FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31. 1989 (with comparative amounts for year ended December 31, 1988) 1989 1988 Sources of working capital Operations Net loss $ (19.926) $ (42.172) Item not requiring working capital Depreciation 127.456 110.385 $ 107.530 $ 68.213 Contribution of property and equipment 249,952 1,357.802 $ 357.482 $1.426.015 Uses of working capital Acquisition of property and equipment 258.515 1.359.789 Increase (decrease) in working capital $ 98.967 $ 66,226 Elements of change in working capital Cash and temporary investments $ 77.920 $ 59.845 Accrued interest receivable 2.070 338 Accounts receivable 21,702 9.750 Inventory 2.484 (2.553 ) Accounts payable 112 (1,020) Due to other governmental units (884) Accrued expenses (4.437) (134) Increase (decrease) in working capital $ 99.967 $ 66,226 53 CITY OF ANDOVER. MINNESOTA SEWER FUND BALANCE SHEET DECEMBER 31. 1989 (with comparative amounts for December 31. 1988) 1989 1988 ASSETS Current assets Cash and temporary investments Accrued interest receivable Accounts receivable Total current assets $ 16.518 $ 28, 17 0 390 178 72.398 65,240 $ 89.306 $ 93.588 $ 7,192 $ 7.140 9,323.536 9.105.859 $9,330,728 $9.112,999 (1.226.324) (1,040,988) $8,104.404 $8,072.011 $8,193.710 $8.165.599 Property and equipment Furniture and equipment Collection system Less accumulated depreciation Property and equipment - Net Total assets LIABILITIES AND FUND EQUITY Current liabilities Accounts payable Accrued expenses Due to other governmental units Total current liabilities $ 1,514 $ 855 3.366 1.665 36,202 17 ,214 $ 41,082 $ 19.734 $8.102,398 $8.069,015 50 , 23 0 76.850 $8,152,628 $8.145,865 $8,193.710 $8,165.599 Fund equity Contributed Retained earnings Unreserved - Undesignated Total fund equity Total liabilities and fund equity 54 ....____1- u c c c c c c c c c c c c c c c c c u I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA SEWER FUND STATEMENT OF REVENUE, EXPENSE AND RETAINED EARNINGS YEAR ENDED DECEMBER 31. 1989 (with comparative amounts for year ended December 31, 1988) Operating revenue User charges Penalties Other Operating expense (excluding depreciation) Personal services Supplies Other services and charges Disposal charges Operating income (loss) before depreciation Less depreciation On assets acquired with own funds On assets acquired from contributions Operating loss Other income Interest income Loss before operating transfers Transfers to other funds Debt service 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 (loss) transferred to retained earnings Retained earnings January 1 Retained earnings December 31 55 1989 1988 $ 188,626 $ 157,640 7.147 4.149 2,723 $ 195.773 $ 164,512 $ 29.623 $ 21,973 3,820 3 . 187 5,148 5 . 93 1 180.181 126.563 $ 218.772 $ 157.654 $ (22,999) $ 6. 858 $ 1,042 $ 1.054 184,294 167.029 $ 185.336 $ 168,083 $(208.335) $(161.225) 1,274 1,189 $(207.061) $(160,036) $ (3,853 ) $ (4,066) (88) $ (3.853) $ (4,154) $(210,914) $(164,190) $ (210.914) $(164.190) 184.294 167.029 $ (26.620) $ 2,839 76,850 74.011 $ 50,230 $ 76,850 CITY OF ANDOVER, MINNESOTA (with SEWER FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31. 1989 comparative amounts for year ended December 31. 1988) 1989 1988 Sources of working capital Operations Net loss $ (210.914) $ (164.190) Item not requiring working capital Depreciation 185 ,336 168,083 $ (25.578) $ 3.893 Contribution of property 217,677 1,508.826 $ 192.099 $1.512,719 Uses of working capital Acquisition of property and equipment $ 217.729 $1.508,826 Inc rease (decrease) in working capital $ (25 ,630) $ 3,893 Elements of change in working capital Cash and temporary investments $ (11.652) $ 15.164 Accrued interest receivable 212 92 Accounts receivable 7 . 15 8 13.650 Due from other governmental units (7,398) Accounts payable (659) (195 ) Due to other governmental units (18.988) (17.214) Accrued expenses (1.701) (206) Increase (decrease) in working capital $ (25,630) $ 3.893 56 -.o.-~ o u c o c c c c c c c ~ c ~ ~ ~ ~ m c I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA FIDUCIARY FUNDS COMBINING BALANCE SHEET DECEMBER 31. 1989 (with comparative totals for December 31. 1988) Expendable Trust Fund Agency Fund Administrative E sc row Totals Trust Fund Fund 1989 1988 AS SETS Cash $ 405,919 $ 659,174 $1.065.093 $1.259.029 Accrued interest receivable 8.458 17.386 25.844 7 . 1 27 Total assets $ 414.377 $ 676.560 $1.090,937 $1.266.156 LIABILITIES AND FUND BALANCE Liabilities Accounts payable Deposits payable Total liabilities $ 296 676.264 $ 676,560 $ 12.500 837,741 $ 850.241 $ 296 676.264 $ 676.560 Fund balance Unreserved-Undesignated $ 414,377 414.377 415.915 Total liabilities and fund balance $1,266,156 $ 414.377 $ 676,560 $1,090.937 57 CITY OF ANDOVER. MINNESOTA EXPENDABLE TRUST FUND ADMINISTRATIVE TRUST FUND STATEMENT OF REVENUE. EXPENDITURES AND FUND BALANCE YEAR ENDED DECEMBER 31, 1989 (with comparative amounts for year ended December 31, 1988) 1989 1988 Revenue Interest earnings $ 33.495 $ 19,609 Other sources Transfers from other funds Capital projects funds Enterprise funds Total other sources $ 35 ,512 $178,933 160 $ 35.512 $179,093 $ 69.007 $198,702 70.545 54,292 $ (1.538) $144.410 415,915 271,505 $414.377 $415,915 Total revenue and other sources Other uses Transfers to General Fund Increase (decrease) in fund balance Fund balance January 1 Fund balance December 31 AGENCY FUND ESCRGl FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED DECEMBER 31, 1989 ASSETS Balance Balance January 1 Additions Deductions December 31 $844.906 $209.176 $394.909 $659.173 5,335 17.387 5,335 17,387 $850.241 $226.563 $400,244 $676.560 Cash Accrued interest receivable Total assets LIABILITIES Accounts payable Deposits payable $ 12.500 837.741 $850,241 $ 296 676,264 $676,560 $ 296 226 ,267 $ 12.500 387,744 $400,244 Total liabilities $226,563 58 ~ -----:.;------- !III! U c c c c c c c c c c c c c c c c ~ ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA STATEMENT OF GENERAL FIXED ASSETS DECEMBER 31. 1989 (with comparative amounts for December 31, 1988) General Fixed Assets Land and improvements Buildings and improvements Furniture and equipment Machinery and automotive equipment 1989 1988 $ 687.779 $ 522,707 622.145 581,838 112,828 101.813 1,013,174 965.863 $2.435,926 $2.172.221 Total General Fixed Assets Investment in General Fixed Assets $2.435,926 $2.172.221 59 1989 c o c c CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT DECEMBER 31. 1989 (with comparative amounts for December 31. 1988) 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 60 1988 c $12,389.593 16.930.056 $29.319,649 c c c $ 9,796,336 17.381,877 $27.178.213 $ 50.000 $ 270,000 233,000 710.000 810.000 1.270,000 1.270.000 26,740,400 24.509.100 $28,990.400 $26,872.100 25 2. 951 234,495 15.267 20,012 6.668 10,409 funds 54.363 41,197 $29,319,649 $27,178,213 c c ~ ~ C C ~ ~ ~ C w -~l--- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA SCHEDULE OF CASH. TEMPORARY INVESTMENTS AND SECURITY FOR DEPOSITS DECEMBER 31. 1989 First National Anoka Checking accounts Money market accounts Certificates of deposit St. Anthony National Bank Money market account 4M Fund Money market fund Certificates of deposit Marquette Bank Twenty-nine (29) certificates of deposit each maturing for $100.000 and each certificate at a different financial institution U.S. Government obligations Commercial paper Petty cash and change funds Total cash and investments Face amount as securities pledged as collateral by depository $ 32.428 259.032 1,247,004 $ 1.538,464 $2,025,000 $ 83,468 $ 419.331 3,600,000 $ 4,019,331 $ 2,688.604 2,002,765 7.727,100 $12,418,464 $ 650 $18,060,382 Additional security of $100.000 each for demand deposits and time deposits is provided at each depository by the Federal Deposit Insurance Corporation. 61 CITY OF ANDOVER. MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS DECEMBER 31, 1989 Bonded indebtedness Certificate of Indebtedness 1985 Certificates of Indebtedness 1986 Certificates of Indebtedness 1987 Certificates of Indebtedness 1989 Certificates of Indebtedness Int erest rates 7.50 6.80-7.60 6.00 6.15 State Aid Street Bonds General Obligation State Aid Street Bonds of 1984 6.75-9.00 General Obligation State Aid Street Bonds of 1988 5.60-6.80 Tax Increment Bonds General Obligation Tax Increment Bonds of 1987A General Obligation Tax Increment Bonds of 1987B 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 Improvement Bonds 1987A General Obligation Improvement Bonds 1987B General Obligation Improvement Bonds 1988 General Obligation Improvement Bonds 1989 Total Bonded Indebtedness Long-term pay abies Metropolitan Waste Control Commission Special assessments on City owned property Equipment purchases Total Indebtedness 62 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 . 1 0-6 . 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 6.75 5.369 6.25-10.70 Various Issue date 11/01/85 06/01/86 02/01/87 12/01/89 Final maturity date 05/01/90 06/01/91 02/01/92 12/01/94 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 07/01/89 1971 Various Various -----;=-r 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 08/01/01 1991 2001 1992 u u ~ l./ c c c c c c c c c c ~ ~ m ~ ~ [!j t Indebtedness Due in 1990 Authorized and issued Redeemed Outstanding Principal Interest ' $ 100,000 $ 80,000 $ 20,000 $ 20,000 $ 750 95,000 57,000 38,000 19,000 2,147 170,000 68,000 102,000 34,000 5,202 110,000 110,000 22,000 6,947 $ 475,000 $ 205,000 $ 270,000 $ 95,000 $ 15,046 $ 510,000 $ 250,000 $ 260,000 $ 50,000 $ 22,100 500,000 50,000 450,000 50,000 28,700 $ 1 $ 300,000 $ 710,000 $ 100,000 $ 50,800 ' $ 1,065,000 $ 1,065,000 $ 15,000 $ 101,175 205,000 205,000 205,000 18,060 $ 1,270,000 $ -0- $ 1,270,000 $ 220,000 $ 119,235 $ 1,635,000 $ 775,000 $ 860,000 $ 95,000 $ 54,797 56,000 36,400 19,600 2,800 1,295 1,215,000 310,000 905,000 40,000 45,250 780,000 320,000 460,000 40,000 23,567 270,000 100,000 170,000 15,000 9,593 ' 270,000 130,000 140,000 20,000 8,450 430,000 305,000 125,000 60,000 6,525 98,000 39,200 58,800 4,900 3,945 ' 4,365,000 4,175,000 190,000 190,000 8,075 300,000 60,000 240,000 15,000 21,018 2,350,000 385,000 1,965,000 170,000 161,415 1,795,000 250,000 1,545,000 100,000 111,290 180,000 108,000 72,000 36,000 5,130 2,600,000 645,000 1,955,000 240,000 115,565 ' 2,485,000 2,485,000 168,980 5,000,000 5,000,000 5,000,000 262,500 1,550,000 1,550,000 1,550,000 93,000 5,800,000 5,800,000 348,000 3,200,000 3,200,000 150,000 234,422 $34,379,000 $7,638,600 $26,740,400 $7,728,700 $1,682,817 ' $37,134,000 $8,143,600 $28,990,400 $8,143,700 $1,867,898 $ 43,018 $ 36,350 $ 6,668 $ 3,943 $ 357 295,324 42,373 252,951 15,132 23,449 23,991 8,724 15,267 5,475 1,798 ' $ 362,333 $ 87,447 $ 274,886 $ 24,550 $ 25,604 $37,496,333 $8,231,047 $29,265,286 $8,168,250 $1,893,502 63 Certificates of indebtedness 1985 Certificates of Indebtedness May 1. 1990 1986 Certificates of Indebtedness June 1. 1990 June 1. 1991 1987 Certificate of Indebtedness February 1. 1990 February 1. 1991 February 1. 1991 1989 Certificate of Indebtedness December 1. 1990 December 1. 1991 December 1. 1992 December 1. 1993 December 1. 1994 CITY OF ANDOVER. MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31. 1989 Issue Maturity date date 08/01/85 06/01/86 02/01/87 12/01/89 Total certificates of indebtedness State aid street bonds General Obligation State Aid Street Bonds of 1984 September 1. 1990 September 1. 1991 September 1. 1992 September 1. 1993 September 1. 1994 09/01/84 64 05/01/90 06/01/90 06/01/91 02/01/90 02/01/91 02/01/92 12/01/90 12/01/91 12/01/92 12/01/93 12/01/94 09/01/90 09/01/91 09/01/92 09/01/93 09/01/94 6.15 $ 22.000 6.15 22.000 6.15 22.000 6.15 22,000 6.15 22,000 $ 110.000 $ 270,000 8.00 $ 50.000 8.20 50.000 8.50 50.000 8.70 50.000 9.00 60.000 $ 260,000 Interest rate 7.50 7.40 7.60 6.00 6.10 6.20 [j [j ~ iI.j Annual serial payments c c c c u c c c $ 20.000 $ 19,000 19.000 $ 38.000 $ 34.000 34.000 34.000 $ 102.000 c c ~ ~ lI.j ~ ~ ~ W --0=- t I CITY OF ANDOVER. MINNESOTA I SCHEDULE OF BONDS PAYABLE (CONTINUED) DECEMBER 31, 1989 I Annual Issue Maturity Interest se rial I date date rate payments State aid street bonds (continued) I General Obligation State Aid Street Bonds of 1988 08/01/88 August 1. 1990 09/01/90 5.80 $ 50,000 I 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 I 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 I August 1. 1998 09/01/98 6.80 50,000 $ 450,000 Total state aid street bonds $ 710,000 I Tax increment bonds General Obligation Tax Increment I 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 I 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 I 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 I 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 I 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 I $1.065.000 General Obligation Tax Increment I Bonds of 1987B 12/01/87 December 1. 1990 12/01/90 8.10 $ 205.000 Total tax increment bonds $1.270.000 I I 65 I CITY OF ANDOVER, MINNESOTA m SCHEDULE OF BONDS PAYABLE (CONTINUED) U DECEMBER 31. 1989 Annual C Issue Maturity Interest se rial date date rate payments C G.O. Improvement (special assessment) Bonds C General Obligation Improvement Bonds of 1976A 08/01/76 February 1. 1990 02/01/90 6.50 $ 95,000 February 1. 1991 02/01/91 6.60 100.000 C 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 C 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 C $ 860,000 General Obligation Improvement Bonds of 1976A 11/01/76 C $2.800 per year 11/01/90 6.25 $ 5.600 $2.800 per year 11/01/91-96 6.75 14,000 $ 19,600 C General Obligation Improvement Bonds of 1977A 03/01/77 $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 C $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 m $ 905,000 General Obligation Improvement Bonds of 1977B 10/01/77 m February 1. 1990 02/01/90 5.25 $ 40.000 February 1. 1991 02/01/91 5.25 45 ,000 February 1. 1992 02/01/92 5.20 45,000 C 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 C $ 460,000 C C 66 0 -- ~ ------- --- -- - I CITY OF ANDOVER. MINNESOTA I SCHEDULE OF BONDS PAYABLE (CONTINUED) DECEMBER 31. 1989 I Annual Issue Maturity Interest se rial I date date rate payments G.O. Improvement (special assessment) I Bonds ( continued) General Obligation Improvement Bonds of 1978 01/01/78 I February 1. 1990 02/01/90 5.60 $ 15.000 February I, 1991 02/01/91 5.70 15,000 February 1. 1992 02/01/92 5.75 15.000 February 1. 1993 02/01/93 5.80 15.000 I February 1, 1994 02/01/94 5.90 15.000 February 1. 1995 02/01/95 6.00 15.000 $20.000 per year 02/01/96-99 6.00 80.000 I $ 170,000 General Obligation Improvement Bonds of 1979 11/01/79 I $20.000 per year 02/01/90-91 6.50 $ 40.000 $25.000 per year 02/01/92-95 6.50 100.000 $ 140,000 I General Obligation Improvement Bonds of 1980A 06/01/80 I February 1. 1990 02/01/90 6.80 $ 60.000 February 1. 1991 02/01/91 6.90 65 . 000 $ 125.000 I General Obligation Bonds of 1980B 08/01/80 $4,900 per year 02/01/90-01 7.00 $ 58,800 I General Obligation Improvement Bonds of 1980C 10/01/80 February 1. 1990 02/01/90 8.50 $ 190,000 I General Obligation Improvement Bonds of 1985A 08/01/85 I February 1. 1990 02/01/90 8.86 $ 15.000 $20.000 per year 02/01/91-95 9.07 100.000 $25.000 per year 02/01/96-00 9.60 125,000 I $ 240.000 I I 67 I CITY OF ANDOVER. MINNESOTA SCHEDULE OF BONDS PAYABLE (CONTINUED) DECEMBER 31, 1989 Issue date G.O. Improvement (special assessment) Bonds (continued) General Obligation Improvement Bonds of 1985B 08/01/85 $170.000 per year August 1. 1992 August 1, 1993 $220,000 per year $180.000 per year August 1. 1998 August 1. 1999 August 1. 2000 General Obligation Improvement Bonds of 1986A August 1, 1990 August 1. 1991 August 1. 1992 August 1. 1993 August 1. 1994 August 1. 1995 August 1. 1996 August 1, 1997 August 1. 1998 August 1. 1999 August 1, 2000 August 1. 2001 07/01/86 General Obligation Refunding Improvement Bonds of 1986A August 1. 1990 August 1. 1991 08/01/86 General Obligation Improvement Bonds of 1986B October 1. 1990 October 1, 1991 October 1. 1992 October 1. 1993 October 1. 1994 October 1. 1995 October 1. 1996 10/01/86 68 Maturity date 08/01/90-91 08/01/92 08/01/93 08/01/94-95 08/01/96-97 08/01/98 08/01/99 08/01/00 08/01/90 08/01/91 08/01/92 08/01/93 08/01/94 08/01/95 08/01/96 08/01/97 08/01/98 08/01/99 08/01/2000 08/01/2001 08/01/90 08/01/91 10/01/90 10/01/91 10/01/92 10/01/93 10/01/94 10/01/95 10/01/96 Interest rate 8.21 8.39 8.47 8.54 8.74 8.93 9.00 9.00 6.10 6.40 6.60 6.80 7.00 7.20 7.40 7.50 7.60 7.70 7.80 7.90 7.00 7.25 5.40 5.60 5.75 5.90 6.00 6.15 6.30 Annual se rial payments $ 340.000 180.000 190.000 440.000 360.000 165.000 160.000 130,000 $1,965.000 $ 100,000 125.000 125,000 125,000 125.000 125.000 125.000 150,000 150,000 145,000 125.000 125.000 $1.545.000 $ 36.000 36.000 $ 72.000 $ 240.000 240.000 240,000 265.000 290,000 340.000 340,000 $1,955,000 - ---...:......-~ ---:- ~ u c c c c c c c c c ~ ~ m c c m m u I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA SCHEDULE OF BONDS PAYABLE (CONTINUED) DECEMBER 31, 1989 Issue date Maturity date G.O. Improvement (special assessment) Bonds (continued) General Obligation Improvement Bonds of 1986C 08/01/86 August 1. 1991 August 1. 1992 August 1. 1993 August 1. 1994 August 1. 1995 August 1. 1996 August 1. 1997 August 1. 1998 August 1. 1999 August 1. 2000 August 1. 2001 August 1. 2002 General Obligation Improvement Bonds of 1987A August 1. 1990 General Obligation Improvement Bonds of 1987B December 1. 1990 General Obligation Improvement Bonds of 1988 August 1. 1991 General Obligation Improvement Bonds of 1989A August 1, 1990 August 1. 1991 August 1. 1992 $300.000 per year Interest rate Annual serial payments 08/01/91 6.00 $ 210.000 08/01/92 6.10 210.000 08/01/93 6.25 215.000 08/01/94 6.50 210.000 08/01/95 6.70 210.000 08/01/96 6.90 210.000 08/01/97 7.00 210.000 08/01/98 7.10 210.000 08/01/99 7.20 210,000 08/01/00 7.25 210.000 08/01/01 7.30 215,000 08/01/02 7.40 165.000 $ 2.485.000 08/01/87 08/01/90 12/01/87 12/01/90 08/01/88 08/01/91 07/01/89 08/01/90 08/01/91 08/01/92 08/01/93-01 Total bonds payable Total G.O. Improvement (special assessment) Bonds 5.25 6.00 6.00 6.75 6.75 6.75 6.75 $ 5,000.000 $ 1,550.000 $ 5,800,000 $ 150.000 150.000 200.000 2.700.000 $ 3.200.000 $26.740,400 $28.990.400 Note - January 1. 1990 maturities are considered matured December 31. 1989. 69 CITY OF ANDOVER. MINNESOTA DEBT SERVICE REQUIREMENTS DECEMBER 31. 1989 G.O. Improvement (special assessment) Bonds Tax Increment Bonds Year Principal Interest Total Principal Interest Total 1990 $ 7.728.700 $1.682.817 $ 9.411.517 $ 220,000 $ 119,235 $ 339,235 1991 7.043.700 1.231.130 8.274.830 35.000 99.938 134,938 1992 1.222.700 806.437 2.029.137 40.000 96.962 136.962 1993 1.347.700 728,881 2,076.581 45.000 93,463 138.463 1994 1,477,700 641.074 2,118.774 45.000 89.480 134,480 1995 1.417.700 546.810 1.964.510 50.000 85.430 135.430 1996 1.437.700 447,446 1.885.146 55.000 80.855 135.855 1997 1.129.900 349.394 1.479.294 55.000 75,768 130,768 1998 994.900 274.196 1.269.096 65.000 70.625 135,625 1999 924.900 204,572 1.129,472 70.000 64.482 134.482 2000 859.900 137.445 997.345 75.000 57.798 .132.798 2001 704.900 75.826 780.726 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 $26,740.400 $7.173.729 $33.914.129 $1,270,000 $1,095,463 $2.365,463 State Aid Street Bonds Year Principal Interest Total 1990 $ 100.000 $ 50.800 $ 150.800 1991 100.000 43.900 143.900 1992 100.000 36.800 136.800 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 $ 710,000 $ 216,750 $ 926 ,75 0 Certificates of Indebtedness Principal Interest Total $ 95.000 $ 15 . 046 $ 110.046 75.000 9.389 84.389 56.000 5.212 61.212 22.000 2.783 24.783 22,000 1.397 23.397 $ 270,000 $ 33,827 $ 303.827 Note - January 1 maturities are considered matured December 31 of the preceding year. 70 -"=-=f- CJ CJ C C C C C C C C C C ~ ~ ~ ~ C c m I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS FOR TAX INCREMENT FINANCING DISTRICT 1-1 INCEPTION TO DECEMBER 31. 1989 Accounted for in Current prior years year Total Sources of funds Tax increments $ 51.601 $167.237 $218,838 State credits 5.839 50,558 56,397 Bond proceeds 205.000 205.000 Land sales 70.081 31.420 101.501 Interest 7,435 11.621 19.056 $339.956 $260,836 $600.792 Uses of funds Capital outlay Administrative costs and other Interest and service charges $222.967 11.000 23.588 $257.555 $ 82,401 $ 6,672 101 18,060 $ 24,833 $236.003 $229,639 11.101 41,648 $282,388 $318,404 District balance 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 Tax capacity Original Current $ 45.660 307,387 Captured $261.727 Financing Total bonds issued General Obligation TAx Increment Bonds of 1987B Outstanding bonds at December 31. 1989 $205.000 $205,000 71 CITY OF ANDOVER, MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS FOR TAX INCREMENT FINANCING DISTRICT 1-2 INCEPTION TO DECEMBER 31. 1989 Accounted for in Current prior years year Total Sources of funds Tax increments $ 188.833 $ 188,833 Bond proceeds $1.044.126 1.044.126 Land sales 7.959 7.959 Interest 24 .658 9.488 34.146 $1.068.784 $ 206 ,280 $1.275.064 Uses of funds Capital outlay $ 763.329 $ 51.150 $ 814.479 Administrative costs and other 29.822 29.822 Interest and service charges 13 O. 969 101.855 232.824 $ 924.120 $ 153.005 $1.077.125 District balance $ 144,664 $ 53 .275 $ 197,939 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 Tax capacity Original Cur ren t $ 29,891 284,917 Captured $ 255,026 Financing Total bonds issued General Obligation Tax Increment Bonds of 1987A Outstanding bonds at December 31. 1989 $1.065.000 $1.065.000 72 ::=-~~ ~ ~ C C C C C C C C C C ~ ~ ~ m m m c I I I I I I I I I I I I I I I I I I I 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 $ 1.187,040 $ 278.731 $ 1.465.771 $ 879.600 $ 586,171 1977A 687,499 314.010 1.001.509 905.000 96.509 1977B 595.667 146.300 741.967 460.000 281.967 1978 132.390 84.595 216,985 170.000 46.985 1979 114.254 56.365 170,619 140.000 30.619 1980A 90.418 53 .384 143.802 125,000 18.802 1980B 78.866 9.907 88.773 58.800 29.973 1980C 207.393 3.978 211.371 190,000 21.371 1985A 290.427 98.116 388.543 240 .000 148.543 1985B 1.298.036 841.933 2.139.969 1.965,000 174.969 1986A 1.509.066 103.295 1.612,361 1.545.000 67.361 1986A Refunding 80. 123 57.855 137.978 72.000 65.978 1986B 290.013 291.746 581.759 1.955.000 (1.373,241) (A) 1986C Refunding 1.633,692 1.401.556 3.035,248 2.485.000 550,248 1987A 1.257.214 2.608.331 3.865,545 5.000.000 (1.134,455) (B) 1987B (287.957) 830,112 542.155 1.550.000 (1.007,845) (C) 1988A (49,533) 3.744.439 3.694.906 5.800,000 (2,105.094) (D) 1989A 441.168 897.003 1.338,171 3.200.000 (1.861.829) (E) Water trunk 1.139.269 26.369 1.165.638 1.165,638 Sewer trunk 878,424 27,060 905,484 905,484 $11,573,469 $11,875,085 $23.448.554 $26,740.400 $ (3 ,291,846) 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) proj ects to be assessed Water and sewer trunk funds City share of costs Crosstown Boulevard (E) proj ects to be assessed Water and sewer trunk funds $ 1.370.000 1.130,000 $ 650.000 350,000 1.000.000 $ 1.315.000 790.000 2.105,000 $ 860.000 1.000.000 1.860.000 73 74 c u c c c c c c c c c c c ~ ~ ~ c w w THIS PAGE LEFT BLANK INTENTIONALLY - -------=---~~ - -;- I I I I I I I I I I I I I I I I I I I SECTION III STATISTICAL SECTION c c c c c c ~ ill C C C C ~ ~ ~ c ~ ~ m m - - - -- ------Ii >- I CITY OF ANDOVER. MINNESOTA I TAX LEVIES AND COLLECTIONS I Percentage I 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 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 1989 1.006,409 987.289 98.10 13.439 1,000.728 99.44 I SPECIAL ASSESSMENT LEVIES AND COLLECTIONS I Percentage Collection Percentage Collection of total I Total of current of levy of prior Total collections Year levy year's levy collect ed years' levy collections to levy 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 1989 1.178.982 1.097.880 93.12 57.987 1.155.864 98.04 I I I 75 I CITY OF ANDOVER. MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31. 1989 Market value of taxable property Debt limit 2.00% of market value Amount of debt applicable to debt limit: Total bonded debt Deductions: Debt Service Fund - Cash and temporary investments (1978 G.O. Bonds) State aid bonds Tax increment bonds G.O. Improvement (special assessment) Bonds Total amount of debt applicable to debt limit Legal debt margin 76 $ 109.309 710,000 1.270.000 26.740.400 $355.383,000 $ 7,107.660 $ 28.990.400 28,829,709 $ 160,691 $ 6.946,969 - I w u c c c c c c c c c c c c c ~ c ~ m I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER. MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) DECEMBER 31. 1989 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 2.00% of the taxable market value." Definitions M.S.A. Section 475.51 "Subdivision 4. 'Net Debt' means the amount rema~m.ng 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 prov~s~on of the law authorizing their issuance are not to be included in computing the net debt of the municipality." 77 CITY OF ANDOVER, MINNESOTA MARKET VALUE. TAX CAPACITY. TAX LEVIES AND TAX CAPACITY RATES (shown by year of tax collectibility) 1989 Estimated market value Personal property Real property $ 8.877.400 346.505.600 $355,383.000 Gross tax capacity Tax increment Contribution to fiscal disparities pool $ 9.214.934 (516.753) (280,414) Value used to calculate taxes $ 8.417.767 Distribution valuation $ 15.060,205 Tax levies Revenue General obligation debt $ 906.259 100.009 $ 1.006.268 Tax capacity rates Revenue General obligation debt 8.484 .937 9.421 78 ~ w c c c c c c c c c c c c c c c u c w ~ I I ~ I I 1 I j I I J I ~ I I 1 I ~ I ~ I ~ I = I ~ I . I I I I I I SECTION IV OTHER -- ---- --- ~--~~~------- !II\ ~ c ~ c c c c c c m c m c w ~ c ~ ~ ~ J I I J I I i J I ! ~ .i I i ~ J I I = I - - - I - I I I I I I I I I I GMHCo GEORGE M. HANSEN COMPANY, P.A. A Professional Corporation a/Certified Public Accountants AUDITORS' REPORT ON LEGAL COMPLIANCE City Council City of Andover We have audited the general purpose financial statements of the City of Andover, M:innesota as of and for the year ended December 31. 1989. and have issued our report thereon dated May 16. 1990. The financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on the financial statements based on our audit. Our audit was made in accordance with generally accepted auditing standards; the provisions of the Minnesota Legal Compliance Audit Guide for Local Government 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 Minnesota Legal Compliance Audit Guide for Local Government 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 Andover. 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. h~~ A 114'~ ~d' ~-II. May 16. 1990 1433 UTICA AVENUE SOUTH. SUITE 17S 79 MINNEAPOLIS. MINNESOTA 55416 612/546-2566 c ~ i.i C' o o c c c m m ~ ~ ~ ~ ~ ~ u [j D - t- --