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HomeMy WebLinkAbout1991 CAFR I I I I I I I ;1 , ;1 ~ I ! I ~I ;1 I I I I I I CITY OF ANDOVER Financial Report Year Ended December 31, 1991 ~~--=-= ~ ~ ,--- --- - I ". I- ~-- --- - I ~i i r-1 1.1 ~ m ~ ~ ~ o c c o ml ~ ~ ~ C o o o c m I I I I I 1 11 I 1 ! I l I II I 1 I I I 1 I :1 CITY OF ANDOVER Financial Report Table of Contents ELECTED AND APPOINTED OFFICIALS FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS (LIFTABLE STATEMENTS) Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Fund Combined Statement of Revenue and Expenditures - Budget and Actual - General and Debt Service Funds Combined Statement of Revenue, Expenses, and Changes in Retained Earnings - Proprietary Fund Type Combined Statement of Cash Flows - Proprietary Fund Type Notes to Financial Statements COMBINING AND INDIVIDUAL FUND STATEMENTS General Fund Comparative Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Debt Service Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures, and Changes in Fund Balance 1991A G.O. Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Certificates of Indebtedness Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual State-Aid Bonds Debt Service Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Page 1 2-3 4-7 8-9 10-11 12 13 14 - 34 35 36 - 43 44 45 46 - 47 48 - 49 50 51 52 53 - 54 [I M., ~ [J 01 I 0, 1 C' 0, o o m ml C ~ UJ ~ c C D ~, ~ C ------=__,~------=-~ - ~- "~- -- - - -. ---- - -- ---~I ----- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Financial Report Table of Contents (continued) Page COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (CONTINUED) Debt Service Funds (continued) Tax Increment Bonds Debt Service Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Special Assessment Bonds Debt Service Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Project Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures, and Changes in Fund Balance State-Aid Capital Project Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance Tax Increment Capital Project Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance Special Assessment Capital Project Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance Proprietary Fund Type Combining Balance Sheet Combining Statement of Revenue, Expenses, and Changes in Retained Earnings Combining Statement of Cash Flows Water Fund Comparative Balance Sheet Statement of Revenue, Expenses, and Changes in Retained Earnings Statement of Cash Flows Sewer Fund Comparative Balance Sheet Statement of Revenue, Expenses, and Changes in Retained Earnings Statement of Cash Flows 55 56 - 57 58 - 61 62 - 65 66 - 67 68 - 69 70 - 71 72 - 73 74 75 76 - 77 78 - 79 80 81 82 83 84 85 86 87 88 " - -------,---- ~ U' ~ o 01 01 C C m m ~ ~ ~ ~ L [ .. Ii! ~ c c c: o ,-c-;----- 1- ] I ~ 1 I I I " " i I . . I - 'I . ]1 I I I I I I I I I I I CITY OF ANDOVER Financial Report Table of Contents (continued) COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (CONTINUED) Fiduciary Funds Combining Balance Sheet Expendable Trust Fund Administrative Trust Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Agency Fund Escrow Fund Statement of Changes in Assets and Liabilities STATISTICAL SECTION (UNAUDITED) General Fund Revenue by Source General Fund Expenditures by Function Tax Levies and Collections Computation of Legal Debt Margin Schedule of Sources and Uses of Public Funds for Tax Increment Financing District No. 1-1 Schedule of Sources and Uses of Public Funds for Tax Increment Financing District No. 1-2 SINGLE AUDIT AND OTHER REQUIRED REPORTS Independent Auditor's Report on Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance Independent Auditor's Single Audit Combined Report on Internal Control Structure Independent Auditor's Compliance Report Based on an Audit of the General Purpose Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Single Audit Report on Compliance With the General Requirements Applicable to Federal Financial Assistance Programs Independent Auditor's Report on Compliance With Specific Requirements Applicable to Nonmajor Related Federal Financial Assistance Program Transactions Independent Auditor's Report on Compliance With Minnesota State Laws and Regulations Schedule of Findings Page 89 90 91 92 93 - 94 95 96 - 97 98 99 100 101 102 - 104 105 106 107 108 109 _. -1- - ~- .- -- ----1------ --- ri ~ c c c c c w ~ o ~ ~ ~ ~ ,. Il. c c c c c - - ---- ------~~-~---------------=-:::::;=- 1 - ] I l- I I I - J I i ]1 . ~ i 11 . . ]1 , il II I I I I I I I I CITY OF ANDOVER Elected and Appointed Officials December 31, 1991 Term of Office Expires First Business Day of Januarv Elected Mayor Kenneth Orttel 1993 Council Marjorie Perry Donald Jacobson John McKelvey Todd Smith 1995 1993 1995 1993 Appointed James E. Schrantz - Administrator Shirley Clinton - Treasurer Victoria Volk - Clerk Howard D. Koolick - Finance Director -1- C WI I C 01 C C ~ * m ~ . ! I cl ~ C [ t [ ~.. i.J C C C -ip-- - ~ r --- -I--:;------r----- - --- I I I I I I I I I II II 11 il il il :1 .1 I I FINANCIAL SECTION c C i ~ ' I C I W! i W! ! ~' ml ~ ~ .. ~ [ r-. ' a.i C CI o c ~ ------'.. - I -- ---I ~- - --~:- I I I I I I I I I I I I I I I I I I I I ~MALLOV KARNOWSKI RADOSEVICH &CO..P.A. PRINCIPALS KENNETH w. MALLOY, CPA THOMAS A. KARNOWSKI. CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1991, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, 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 general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The general purpose financial statements include the financial activities and balances of the City's General Fixed Assets Account Group, all of which are unaudited. We were unable to audit the General Fixed Assets Account Group because the City has not maintained detailed accounting records of its general fixed assets. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to audit general fixed assets, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Andover, Minnesota, at December 31, 1991, and the results of its operations, changes in fund balance, and cash flows of the Proprietary Fund Type for the year then ended, in conformity with generally accepted accounting principles. (continued) C:EC~'F="'EO~ O=>LO~L-.c::: .....CCc:'lUr--l-.-.A.1'..I rs -2- 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 Ta..EFAX: 612-545-0569 -- i~ -- I c c c c c ~ l.i.l WI i m! ~ ~ ~ t I!Il i. C C C C tl o I.-~~ I ) I II l - I I l I l I ~ 11 II . I I I I I I I I I Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund statements as listed in the 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 the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical information as listed in the table of contents is not necessary for a fair presentation of the general purpose financial statements, but is presented as additional analytical data. This information is unaudited and we do not express an opinion on it. d1:<~~; ~<~ /~ , . March 27, 1992 -3- _ ,i......, - ! M' ~ ,., ~ ! ! c , , i C C C C ~... ~ W W W C '" ~ [ C [:1 c c Cl -1-~ - - -,--- r- ~---- I 'I I I I I I II j 11 t 11 , , ]1 11 11 il il il I I I GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF ANDOVER Combined Balance Sheet All Fund Types and Account Groups As of December 31, 1991 (with Comparative Totals as of December 31, 1990) I I Governmental Fund Types Special Debt Capital General Revenue Service Project Assets and Other Debits V I Assets Q Cash and temporary investments $ 734,344 $ 66,092 $ 9,795,217 $ 1,045,385 Receivables Accounts 20,713 — — 2,918 Accrued interest 6,407 1,025 165,705 39,250 Delinquent taxes 38,304 — 26,018 — Delinquent special assessments 350 21 317,009 13,062 Deferred special assessments 7,102 — 5,993,429 720,818 Due from other governmental units 73,834 — 928,500 287,087 Due from developer — — 216,490 — Inventory — — — Property, plant, and equipment, net of accumulated depreciation — — — — Other debits Amount available in Debt Service Funds — — — — Amount to be provided for long -term debt — — Total assets and other debits $ 881,054 $ 67,138 $_17A42 $ 2,108,520 Yr See notes to financial statements -4 I I I I I I 1 - j I . il JI I I I I I I I I I Proprietary Fund Type Enterprise Fiduciary Fund Type Expendable Trust Account Groups General General Fixed Assets Long-Term (Unaudited) Debt Totals (Memorandum Only) 1991 1990 $ 413,043 $ 594,955 $ $ $ 12,649,036 $ 14,384,563 163,198 186,829 161,424 6,929 5,305 224,621 239,855 64,322 80,621 2,585 333,027 204,143 17,163 6,738,512 8,578,200 9,316 1,298,737 1,230,878 216,490 229,051 7,327 7,327 5,385 14,700,752 5,044,226 19,744,978 15,906,136 9,938,429 9,938,429 10,388,198 13,018,498 13,018,498 13,595,951 $ 15,320,313 $ 600,260 $ 5,044,226 $ 22,956,927 $ 64,420,806 $ 65,004,405 (continued) -5- CITY OF ANOOVER Combined Balance Sheet (continued) All Fund Types and Account Groups As of December 31,1991 (with Comparative Totals as of December 31, 1990) liabilities, Equity, and Other Credits liabilities Cash deficits Accounts payable Contracts payable Accrued expenses Due to other govenunentall units Deposits payable Deferred revenue Arbitrage rebate Contract for deed Bonds payable Total liabilities Equity and other credits Investment in general fixed assets Contributed capital Retained earnings Designated for equipment Undesignated Fund balance (deficit) Reserved for debt service Unreserved Designated for working capital Designated for capital projects Designated for fquipment Undesignated Total equity and other credits Total liabilities, equity, and other credits See notes to financial statements --,----- - ----c---=_ General $ 58,113 32,361 74,217 45,756 210,447 -6- Govenunental Fund Types $ 32,022 $ 658,125 9,677 104,091 61,000 3,764 30,513 26 50 7,447,313 1,020,698 11,137 Special Revenue $ 405 21 Debt Service 426 7,503,939 - ---,--:-:- --- ,. ,. ij. ~ I' : ~ ~ ~ Capital Project c c c C ~I iii I i W to to ~ r Il. 1,874,477 t C C C C C I I I I I I I I I ~ ]1 I- I I I I I I I I I Proprietary Fund Type Fiduciary Fund Type Enterprise Agency Account Groups General General Fixed Assets Long-Term (Unaudited) Debt Totals (Memorandum Only) ~ 1991 1990 $ $ $ $ $ 690,147 $ 31,918 7,000 2,836 193,941 376,063 452,832 3,962 64,962 61,356 14,270 69,594 150,502 116,046 357 74,650 77,628 371,360 371,360 504,247 8,513,788 10,117,339 11,137 47,430 47,430 22,642,000 22,642,000 23,641,000 21,627 374,196 22,956,927 32,942,039 35,002,366 5,044,226 5,044,226 2,566,553 14,637,378 14,637,378 13,280,706 33,640 33,640 627,668 627,668 470,394 9,969,679 10,395,982 668,121 617,768 2,145,265 3,350,521 174,323 172,985 226,064 (1,821,533) (852,870) 15,298,686 226,064 5,044,226 31,478,767 30,002,039 $ 15,320,313 $ 600,260 $ 5,044,226 $ 22,956,927 $ 64,420,806 $ 65,004,405 -7- CITY OF ANDOVER Com bined Statement of Revenue, Expenditures, and Changes in Fund Balance AJI Governmental Fund Types and Expendable Trust Fund Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) General Revenue Taxes ad valorem Tax increments Special assessments Licenses and pennits Intergovernmental Charges for services Fines and forfeits Other Interest earned on investm,~nts Sale ofland Park dedication fees Refunds and reimbursements Miscellaneous Total revenue $ 1,017,774 230,298 640,318 82,604 31,750 27,248 37,119 6.923 2,074,034 Expenditures Current General government Public safety Public works Sanitation Parks and recreation Recycling Economic development Unallocated Capital projects Debt service 579,797 805.393 374.138 14,831 245,097 46,771 17,447 72.521 Total expenditures 2,155,995 Excess (deficiency) of revenue over e,xpenditures (81.961 ) Other financing sources (uses) Bond proceeds Operating transfers in Operating transfers (out) Total other fmancing sources (uses) 134,800 134.800 Excess (deficiency) of revenue and other fmancing: sources over expen- ditures and other financing uses 52,839 Fund balance Beginning of year Residual equity transfers in Residual equity transfers (out) Governmental Fund Types Special Debt Revenue Service $ $ 86,585 544,544 3 2,387,518 175,369 4,738 760,949 55,627 57,317 4,741 4,067,909 11,643 11,643 (6,902) 8,202 8,202 1,300 9,222,715 9,222,715 (5,154,806) 3,389,500 550,954 (557,829) 3,382,625 (1,772.181) ~ I' .. ~ '- c Capital Project c $ c 604,584 232,719 c 240,952 o 14,250 329 1,092,834 ~ m m ~ 4,527,150 ~ 4,527,150 (3,434,316) [ 2,712,000 234,234 (278,891) 2,667,343 t r . (766,973) c 10,388,198 1,394,046 (71,634) $ 670,607 $ 66.712 $ 9,938,429 $ 2,323,428 89.331 (1,411,743) . . I ~J 617,768 End of year See notes to fmancial statements -8- -------~~~ . _;~ - - 1- - - - . - - ,---- 65,412 - -.--=--r-- 234,043 c c I I I Fiduciary Totals Fund Type (Memorandum Only) I Expendable Trust 1991 1990 I $ $ 1,104,359 $ 991,942 544.544 449.064 2,992,105 3,648,638 230,298 212,793 I 1,048,406 1,133,122 82,604 75,962 31,750 46,650 I 20,824 1,054.711 1,516,505 55.627 5.000 14,250 16.735 ] I 37.119 38,480 64,569 28,241 a 20,824 7,260,342 8,163.132 ;; J I ~ 579.797 593.778 I 805.393 754.914 385.781 309,593 14,831 29,168 245.097 261.449 I 46.771 39.567 17.447 14.289 72,521 129,589 4,527,150 2,111.403 I 9.222.715 11,531.208 15,917,503 15,774,958 I 20,824 (8.657,161) (7.611.826) I 6.101.500 4,031,476 20.460 948,650 1,069.383 (104,800) (941.520) (1,099.883) I (84.340) 6,108,630 4,000.976 I (63,516) (2,548,531 ) (3,610,850) I 289,580 13.684.386 17,295.236 1,483,377 1,610,932 (1.483,377) (1.610.932) I $ 226.064 $ 11.135.855 $ 13.684.386 I -9- CTIY OF ANOOVER Combined Statement of Revenue and Expenditures Budget and Actual General and Debt Service Funds Year Ended December 31, 1991 General Fund Over (Under) Budget Actual Budget Revenue Taxes ad valorem $ 1,072,643 $ 1,017,774 $ (54,869) Tax increments Special assessments licenses and permits 223,710 230,298 6,588 Intergovernmental 592,199 640,318 48,119 Charges for services 72,350 82,604 10,254 Fines and forfeits 59,000 31,750 (27,250) Other Interest earned on investments 30,000 27,248 (2,752) Sale of land Refunds and reimbursements 30,000 37,119 7,119 Miscellaneous 6,143 6,923 780 Total revenue 2,086,045 2,074,034 (12,011) Expenditures Current General government 584,657 579,797 (4,860) Public safety 811,658 805,393 (6,265) Public works 423,746 374,138 (49,608) Sanitation 32,297 14,831 (17,466) Parks and recreation 219,897 245,097 25,200 Recycling 37,129 46,771 9,642 Economic development 16,544 17,447 903 Unallocated 80,117 72,521 (7,596) Debt service Total expenditures 2,206,045 2,155,995 (50,050) Excess (deficiency) of revenue over expenditures (120,000) (81,961 ) 38,039 Other financing sources (uses) Bond proceeds Operating transfers in 120,000 134,800 14,800 Operating transfers (out) Total other financing sources (uses) 120,000 134,800 14,800 Excess (deficiency) ofrevenue and other financing sources over expen- ditures and other financing uses $ $ 52,839 $ 52,839 See notes to financial statements -10- - -- - --------,--;-,---- - -:-:~- -- -~ - - i .. o ~ i.j c c c c c m m ~ ~ ~ [ t t C C o I I I II Debt Service Funds 1 I Over (Under) Budget Actual Budget J I $ 94,855 $ 86,585 $ (8,270) ~ 227,000 544,544 317,544 ~ I 1,783,651 2,066,997 283,346 ~ 224,400 175,369 (49,031) ~ I i . 496,536 669,503 172,967 II 55,627 55,627 il 42,179 42,179 2,826,442 3,640,804 814,362 II I I I 8,744,235 9,098,587 354,352 8,744,235 9,098,587 354,352 I (5,917,793) (5,457,783) 460,010 I 3,125,000 3,389,500 264,500 37,630 459,042 421,412 I (175,000) (105,918) 69,082 2,987,630 3,742,624 754,994 I $ (2,930,163) $ (1,715,159) $ 1,215,004 I I -11- CITY OF ANDOVER Combined Statement of Revenue, Expenses, and Changes in Retained Earnings Proprietary Fund Type Years Ended December 31, 1991 and 1990 Operating revenue User charges Meters Permit fees Penalties Other Enterprise Funds 1991 1990 $ 557,021 $ 508,933 29,473 26,185 11,400 10,750 14,322 12,445 6,366 1,737 618,582 560,050 119,003 95,838 29,163 25,080 21,930 21,662 44,510 28,112 223,752 212,665 438,358 383,357 180,224 176,693 348,614 324,588 (168,390) (147,895) 27,279 18,054 (748) 27,279 17,306 (141,111) (130,589) Total operating r,evenue Operating expenses Personal services Supplies Meters, etc. Other services and charges. Disposal charges Total operating t:xpenses Operating income before depreciation Depreciation Operating loss Other income (expense) Interest income Interest expense Total other income (expense) Net loss Other financing sources (uses) Operating transfers in Debt Service Funds Operating transfers (out) Debt Service Funds Total other financing sources (uses) 30,500 30,500 (37,630) (7,130) 30,500 339,155 317,905 190,914 217,816 470,394 252,578 $ 661,308 $ 470,394 Add credit for depreciation on contributed assets Income closed to retained earnings Retained earnings Beginning of year End of year See notes to financial statements -12- 1- .-I i . .. r-." , t.J ~. ~ c c o c c w! I m m ~ ~ ~ t C t C C I CITY OF ANOOVER I Combined Statement of Cash Flows Proprietary Fund Type Years Ended December 31,1991 and 1990 I I Enterprise Funds 1991 1990 I Cash flows from operating activities Operating loss $ (168,390) $ (147,895) . Adjustments to reconcile operating loss to I I net cash provided by operating activities Depreciation 348,614 324,588 Change in assets and liabilities I Receivables J I Accounts (25,490) (17,010) ! I Delinquent special assessments (320) (2,265) Deferred special assessments 3,059 (20,223) Due from other governmental units (8,686) (630) i Inventory (1,942) 75 1 Accounts payable (9,948) 11,831 ~I Accrued expenses 4,984 (321 ) Due to other governmental units (16,061 ) (20,668) I Net cash provided by operating activities 125,820 127,482 Cash flows from capital and related financing activities Acquisition of capital assets (13,955) (53,402) I Cash flows from investing activities Interest received 23,239 17,318 I Cash tlows from noncapital financing activities Operating transfer from Debt Service Funds 30,500 30,500 I Operating transfer to Debt Service Funds (37,630) Net cash provided (used) by (7,130) 30,500 noncapital financing activities I Net increase in cash and temporary investments 127,974 121,898 I Cash and temporary investments Beginning of year 285,069 163,171 I End of year $ 413,043 $ 285,069 Supplemental schedule of noncash investing, capital, and financing activities I Assets contributed by other funds $ 1,695,827 $ 353,704 I See notes to financial statements I -13- , Mi -- o c c c c o I C' ~. o ~ ~ ~ ~ t t t r ~ c c --=;:::------,--~- _ ~ _ --,---- -- - -- --- - --- - - -=--------r::----,-------- h J I i I 11 j I I I J I I I II :! '1 I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Organization The City operates under "Optional Plan A" form of government as defined in the State of Minnesota Statutes. The City Council, composed of an elected mayor and four elected trustees or councilmembers, exercises legislative authority and determines all matters of policy. B. Reporting Entity The City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which the City's officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget review, approval of property tax levies and special assessments, outstanding debt secured by the City's full faith and credit or revenue, and responsibility for funding deficits. The Fire Relief Association is excluded from the City's financial statements because of the lack of oversight responsibility. C. Basis of Statement Presentation The accounts of the City are organized on the basis of funds and account groups, each of which is accounted for as an independent entity. A description of the fund types and account groups included in the report are as follows: 1) Governmental Fund Types a) General Fund - The General Fund is used to account for all financial resources except those required to be accounted for in another fund. b) Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of certain specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. c) Debt Service Funds - The Debt Service Funds are used to account for the accumulation of resources for, and payment of principal, interest, and related costs of general long-term debt obligations. d) Capital Project Funds - The Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). -14- CITY OF ANDOVER c -15- o 01 c C c C Q m I c ~ c C t t C t C C Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF' SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2) Proprietary Fund Type a) Enterprise Funds - The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises -- where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. 3) Fiduciary Fund Type a) Trust and Agel1lcy Funds - The Trust and Agency Funds are used to account for assets held by the City in the capacity of trustee or agent. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 4) Account Groups a) General Fixed Assets (Unaudited) - This group of accounts contains the fixed assets of the Governmental Fund Types. b) General Long-1rerm Debt. This group of accounts contains the long-term obligations of the City other than those liabilities included in the Proprietary Funds. 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 does not present financial position, results of operations, or c:ash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. D. Basis of Accounting 1) Modified Accrual.. The Governmental and Fiduciary Fund Types are accounted for using the modified accrual basis of accounting. Their revenue is recognized when it becomes measurable and available as net current assets. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property tax and special assessment revenue is generally considered as available if collected within 60 days after year-end. State revenue is recognized in the y(~ to which it applies according to Minnesota Statutes. Their expenditures are generally recognized when the related fund liability is incurred. Interest and principal expenditures in the Debt Service Funds are recognized on the due dates. Major revenues sus(;eptible to accrual are property taxes, special assessments, intergovernmental revenues, charges for services, and interest earned on investments. Licenses, permits, fines, forfeits, and other miscellaneous revenues are not susceptible to accrual as they are generally not measurable until re,;eived in cash. ---I- --, ~-- ...j ~ I i ! I J I .. j I j I ~ .i I I - i I ~I ~I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2) Accrual - Proprietary Funds are accounted for using the accrual basis of accounting. Their revenue is recorded when earned and expenses are recognized when they are incurred. E. Budget The amounts shown on the financial statements as "Budget" represent the revised budget amounts based on the modified accrual basis of accounting. Budgets are adopted annually by the Council for the General, Debt Service, and Enterprise Funds. Neither Minnesota Statutes nor City Code establish a legal level of control for the budgets presented. The 1991 budget was amended at the departmental level. The City made no significant amendments to the appropriations budgeted for 1991. The" Combined Statement of Revenue and Expenditures - Budget and Actual" reflects all budgetary to actual comparisons for Governmental Funds budgeted by the City. Encumbrance accounting is not used and expenditure appropriations lapse at year-end. F. Cash and Investments Cash balances from all funds are combined and invested to the extent available in various securities as authorized by State law. Earnings from the pooled investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are stated at cost, which approximates market value. G. Property Taxes Property tax levies are set by the City Council each year and are certified to Anoka County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year collectible. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable. Revenue from property taxes which is not collected within 60 days of year-end is deferred since it is not available to meet obligations of the current year. Real property taxes xpay be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts four times a year. A portion of the property taxes levied is paid by the State of Minnesota through Homestead and Agricultural Credit Aid (HACA) and Equalization Aid which are included in intergovernmental revenue in the financial statements. -16- r '- CITY OF ANDOVER Collection and distribution systems Machinery Furniture and equipment 50 years 20 years 3-15 years o o o c c c w m ~ .. w ~ c [ [ t ~ C C Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Special Assessments Special assessments represent the financing for public improvements paid for by benefitting property owners. These assessments are recorded as receivables upon certification by the City Council. The corresponding revenue from delinquent (unremitted) and deferred (certified but not yet levied) special assessments receivable are deferred until the year in which they become available. I. Inventory The inventory held by the Proprietary Funds is stated at cost on the first-in, first-out basis. The cost of inventory is recognized as expense at the time the items are sold or used. J. Property, Plant, and Equipment 1) General Fixed Assets Account Group (Unaudited) - The City does not maintain records which provide complete detailed accounting control over quantities and original costs of assets in this account group. Fi"ed assets are valued at historical cost or estimated historical cost. No depreciation has be(~n provided on general fixed assets. The costs of property, plant, and equipment are accounted for as current expenditures of the Governmental Fund Types in the year purchased. The City elected not to record infrastructure fixed assets in its accounting records. 2) Proprietary Fund Type - Fixed assets of the Proprietary Funds are stated at cost, estimated cost, or, in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight-line method over the estimated useful lives of the assets, as follows: Depreciation on contributed assets charged to operations is closed to the Contributed Equity Account. K. Compensated Absences City employees earn vacation and sick pay accruing each payroll period. Unused vacation can be accrued by the employees up to a maximum of 200 hours as of the anniversary date of the individual's employment with the City. In the Governmental Fund Types, vacation pay is expensed as paid, and the liability for unused vacation is recorded in the General Long-Term Debt Account Group. Proprietary Fund Types expense vacation pay as it accrues, with the liability being recorded in the respective fund. -17- I--- - ~---=--- -r-- -- -~---- '" J I J I ~ - i I J I - h t I I i I = ~ I - I I ~I ! I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Employees can also accrue an unlimited amount of unused sick leave. Employees with two or more years of service are entitled to receive severance pay equal to a percentage of unused sick pay ranging from 20-50% based on years of service, up to a maximum of 400 hours. The liability for severance pay is accounted for the same as accrued vacation pay. L. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data has not been presented in all statements because its inclusion would make certain statements unduly complex and difficult to understand. M. Statement of Cash Flows For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. The Proprietary Funds' equity in the City-wide cash and investment management pool is considered to be cash equivalent. NOTE 2 - CASH AND TEMPORARY INVESTMENTS Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and temporary investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: A. Security of Deposits Deposits consist of checking accounts, savings accounts, and certificates of deposit held in a bank or savings institution. At year-end, the carrying amount of the City's deposits was $3,235,012, while the balance on the bank records was $3,424,516. All deposits were insured or covered by collateral (with market value exceeding 110% of deposits) held by the City or its agent in the City's name. -18- CITY OF ANDOVER ~ lW 204,814 204,814 o c c c c c C C1 m C ~ ~ C t ~ C Notes to Financial Statements (continued) December 31, 1991 NOTE 2 - CASH AND TEMPORARY INVESTMENTS (CONTINUED) B. Security or Investments Minnesota State Statutes authorize the City to invest in obligations of the U.S. Treasury, agencies, and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase or reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270 days. The City's investments are categorized below to give an indication of the level of risk assumed at year- end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in th,~ City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. Credit Risk Category 2 Carrying Market 3 Value Value - $ 70,226 $ 72,000 1,035,691 1,026,875 292,269 6,655.810 6,775,259 292,269 7,761,727 7,874,134 Repurchase agreements $ 70,226 $ U.S. Government Securities 1,035,691 Commercial paper 6,363,541 $ 7.469,458 $ - $ - $ Investment pools Minnesota Municipal Money Market Fund Fidelity Government Money Market Portfolio 756,686 756,686 $ 8.723.227 $ 8.835,634 C. Cash on Hand Cash in the possession of the City, consisting of petty cash and change funds, totaled $650 at December 31, 1991. NOTE 3 - DUE FROM DEVEWPER As part of a development agreement the City entered into with a private developer in May 1989, the City received a promissory note for $243,520 from the developer. The note is to reimburse the City for the fiscal disparities' contributions the City lost due to the establishment of a Tax Increment Financing District for the development project. The note bears an interest rate of 5.50% and calls for 180 equal monthly payments to be made to the City through August 2003. - L. -19- ~ C:-~--r=-- ~ - ~ -,- -------------r-:;:--i--------- - J I J I ~ j I JI . j I I !! I ~ - ! i I - I ~I :; I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 4 - DUE FROM OTHER GOVERNMENTAL UNITS The amounts due from other governmental units at December 31, 1991 are composed of the following: Due from State of Minnesota State share of street improvement projects State share of underground storage tank removal costs Other $ 274,575 9,325 12 283,912 30,754 25,881 24,291 894,366 28,006 1.775 1,005,073 1,600 8.152 $ 1.298.737 Total due from State of Minnesota Due from Anoka County Delinquent taxes collected within 60 days of year-end Delinquent special assessments collected within 60 days of year-end Reimbursement of Community Development Block Grant expenditures County share of various improvement project costs County share of recycling program costs Court fines Total due from Anoka County Due from City of Rogers - sale of equipment Due from Metropolitan Waste Control Commission Total from all sources NOTE 5 - PROPERTY AND EQUIPMENT A. Proprietary Fund Type Property and Equipment A summary of Proprietary Fund Type property, equipment, and accumulated depreciation follows: Water Sewer Total Furniture and equipment $ 69,386 $ 20,080 $ 89,466 Machinery 561,365 561,365 Collection and distribution systems 6.588.334 9.841.557 16.429.891 7,219,085 9,861,637 17,080,722 Less accumulated depreciation (768.202) (1.611.768) (2.379.970) $ 6.450.883 $ 8.249.869 $ 14.700.752 -20- CITY OF ANDOVER I!IIl fi .. Land and improvements $ 709,902 $ 144,062 $ Buildings and improvements 632,542 1,106,648 Furniture and equipment 152,874 147,189 Machinery and automotive equipment 1.071.235 1.115.504 $ 2.566.553 $ 2.513.403 $ NOTE 6 - LONG-TERM DEBT A. Summary of Changes in Long-Term Debt - $ 853,964 1,739,190 288,272 2.162.800 5.044.226 rl. I ~ c 01 01 C C' I Ql Notes to Financial Statements (continued) December 31, 1991 NOTE 5 - PROPERTY Al"i1D EQUIPMENT (CONTINUED) B. Changes in General Fi,;ed Assets A schedule of changes in general fixed assets (unaudited) by major asset type follows: Balance Beginning of Year Deletions Balance End of Year Additions 11,791 23.939 35.730 $ '" ~ The following is a summary of changes in long-term debt of the City for the year ended December 31, 1991: m ~ Balance Balance Beginning New Debt Debt End of of Year Issues Retired Year General long-term debt General Obligation Bonds $ 23,466,000 $ 5,900,000 $ 7,026,000 $ 22,340,000 Certificates of Indebtedness 175,000 252,000 125,000 302,000 Assessments on City property 269,374 75,433 193,941 Capital lease obligations 9,495 5,533 3,962 Due to Metropolitan Waste Control Commission (MWCC) 2,726 2,726 Compensated absences payable 61,554 8,040 69,594 Contract for deed payable 47 .430 47 .430 Total general long-term debt $ 23.984.149 $ 6.207.470 $ 7 .234.692 $ 22.956.927 ~ iii -21- t C C C C C o -~--- - - -----T-=---r- ii J I CITY OF ANDOVER ,. - I ~ Notes to Financial Statements (continued) ; December 31, 1991 ~ I i ~ ! NOTE 6 - LONG-TERM DEBT (CONTINUED) ~ I I B. Components or Long-Term Debt i .. I Final Balance I Original Interest Issue Maturity at i Issue Rate Date Date Year-End ~ .. i I General Long-Term Debt i General Obligation Bonds Special Assessment Bonds Improvement Bonds of Series 1977 A $ 1,215,000 5.00% 3-01-77 1-01-06 $ 825,000 - I Improvement Bonds of 1978 $ 270,000 5.25-6.00% 11-01-78 2-01-99 140,000 . hnprovement Bonds of 1979 $ 270,000 6.50% 10-01-79 2-01-95 100,000 ! Improvement Bonds of Series 1985A $ 300,000 8.25-9.60% 3-01-85 2-01-00 205,000 - Improvement Bonds of Series 1985B $ 2,350,000 6.00-9.00% 8-01-85 8-01-00 1,625,000 - I hnprovement Bonds of Series 1986A $ 1,795,000 5.00-7.90% 7-01-86 8-01-01 1,320,000 Improvement Bonds of Series 1986B $ 2,600,000 4.75-6.30% 10-01-86 10-01-96 1,475,000 - Refunding Bonds of Series 1986C $ 2,485,000 6.00-7.40% 8-01-86 8-01-02 2,275,000 Improvement Bonds of Series 1989A $ 3,200,000 6.10-6.80% 7-01-89 8-01-01 2,900,000 - I Temporary Improvement Bonds of Series 1990A $ 2,500,000 6.25% 7-01-90 7-01-93 2,500,000 Temporary Improvement Bonds of Series 1990B $ 1,550,000 5.90% 12-01-90 12-01-93 1,550,000 I Temporary hnprovement Bonds of Series 19918 $ 3,400,000 5.40% 7-01-91 7-01-94 3,400,000 Tax Increment Bonds G.O. Tax Increment Bonds of Series 1987 A $ 1,065,000 8.25-9.90% 5-01-87 2-01-05 1,015,000 I G.O. State-Aid Street Bonds 1984 $ 510,000 6.75-9.00% 9-01-84 9-01-94 160,000 1988 $ 500,000 5.60-6.80% 8-01-88 8-01-98 350,000 G.O. Fire Station Bonds I of Series 1991A $ 2,500,000 5.00-6.50% 7-01-91 7-01-01 2,500,000 Total General Obligation Bonds 22,340,000 Certificates of Indebtedness I 1987 Certificates of Indebtedness $ 170,000 5.75-6.20% 2-01-87 2-01-92 34,000 1989 Certificates of Indebtedness $ 110,000 6.25-6.35 % 12-01-89 12-01-94 66,000 1990A Certificates of Indebtedness $ 252,000 6.30-6.70% 7-01-91 1-01-96 202.000 Total Certificates of Indebtedness 302,000 I Assessments on City property $ 338,174 6.25-10.70% N/A 2001 193,941 I Capital lease obligations Ricoh FT5000 copier $ 5,523 13.90% 5-23-88 3-01-92 435 AT&T phone system $ 10,267 11.50% 5-10-88 5-10-93 3,527 Total capital lease obligations 3,962 I Contract for deed payable $ 47,430 9.00% 8-05-91 8-01-96 47,430 Compensated absences payable N/A N/A N/A N/A 69.594 I Total General Long-Term Debt $ 22.956.927 I I -22- CITY OF ANDOVER ,. li ;, ~ Notes to Financial Statements (continued) December 31, 1991 r1 ~ C C NOTE 6 - LONG- TERM DEBT (CONTINUED) C. Minimum Debt Payments Minimum annual principal and interest payments required to retire long-term debt, excluding assessments on City property and compensated absences payable: General Certificates Capital Year Ending Obligation of Lease Contract December 31 Bonds Indebtedness Obligations for Deed Total 1992 $ 2,894,511 $ 124,446 $ 3,155 $ 13 ,495 $ 3,035,607 1993 6,919,969 84,818 1,129 12,689 7,018,605 1994 5,971,015 80,182 11,836 6,063,033 1995 2,363,940 55,485 10,982 2,430,407 1996 2,208,516 10,129 2,218,645 Thereafter 8.594 .699 8.594.699 28,952,650 344,931 4,284 59,131 29,360,996 Less amount representing interest (6.612..650) (42.931) (322) 01.701) (6.667 .604) $ 22.340,000 $ 302,000 $ 3,962 $ 47 ,430 $ 22,693,392 D. Descriptions and Restrictions of Long-Term Debt c o Fire Station - These bonds were issued to finance the costs of constructing and equipping two new fire stations. The issues will be repaid primarily from ad valorem levies. c c m m ~ ~ t C C C C General Obligation Bonds classified by major source of repayment are as follows: o Special Assessment Revenue - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefitting from the improvements. Some issues, however, are partly financed by ad valorem levies. o Tax Increment Levies - These bonds were issued for redevelopment projects. The additional tax revenue resulting from increased taxable valuation of the redeveloped properties is used to retire the related debt. o State-Aid - These bonds were issued to finance the construction, improvement, or repair on State- aid streets within th(~ City. The issues will be repaid from allocations made to the City's accounts in the Municipal State-Aid Street Fund. ~ I.j -23- c c -c---;-c~---c---,- r-:~-- . ) I II i ~ I j ! i J I I I ~ . I ::! I ~ I ! 'I -I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 6 - WNG-TERM DEBT (CONTINUED) Other types of long-term debt are as follows: o Certificates of Indebtedness - These certificates were issued to finance the purchase of equipment. They will be retired from ad valorem levies and transfers from other funds. o Assessments on City Property - These are special assessments for improvement projects which benefitted specific parcels of land owned by the City. o Capital Lease Obligations - The City is currently leasing a copier and a phone system under agreements classified as capital leases that bear interest rates varying from 11.5% to 13.9%. o Contract for Deed Payable - In August 1991, the City entered into an agreement to purchase a piece of land. The total cost of the land was $56,100, consisting of a cash payment of $8,670 and a contract for deed for the remaining $47,430. The contract for deed bears an annual interest rate of 9.0% and calls for bi-annual payments through August 1, 1996. o Compensated Absences Payable - This liability represents vested vacation and severance benefits earned by employees through the end of the year which will be paid or used in future periods. All long-term debt is backed by the full faith and credit of the City. E. Resources to Meet Future Debt Requirements o Amounts Available for Long-Term Debt - The fund balance available in the Debt Service Funds for repayment of long-term debt at December 31, 1991 is $9,938,429. o Amounts to be Provided for Long-Term Debt - This amount represents future revenue to be generated for debt payments, generally including deferred tax levies, special assessments, tax increments, fund transfers, and interest earnings. Deferred tax levies scheduled to be placed on the tax rolls, as needed, total $4,221,719 at December 31, 1991. NOTE 7 - PROPRIETARY FUNDS CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Proprietary Funds by the City, less depreciation thereon charged to the respective funds' operations. Changes occurring in the account during 1991 were as follows: -24- CITY OF ANDOVER ~ .. Notes to Financial Statements (continued) December 31, 1991 ~ ~ M .. NOTE 7 - PROPRIETARY FUNDS CONTRIBUTED CAPITAL (CONTINUED) Water Fund Sewer Fund Total Balance - beginning of year $ 5,172,534 $ 8,108,172 $ 13,280,706 Capital contributed 1,371,993 323,834 1,695,827 Less current year's depreciation on contributed asSl~ts (145.562) (193.593) (339.155) Balance - end of year $ 6.398.965 $ 8.238.413 $ 14.637 .378 c c c NOTE 8 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City provides services which are accounted for in the Enterprise Funds. The segment information for these funds for the year ended December 31,1991 is as follows: Water Fund Sewer Fund Total Operating revenue $ 253,233 $ 365,349 $ 618,582 Operating expenses $ 149,395 $ 288,963 $ 438,358 Depreciation expen:;e $ 153,175 $ 195,439 $ 348,614 Operating loss $ (49,337) $ (119,053) $ (168,390) Net loss $ (27,228) $ (113,883) $ (141,111) Operating transfers in $ - $ 30,500 $ 30,500 Operating transfers (out) $ - $ (37,630) $ (37,630) Current capital contributed $ 1,371,993 $ 323,834 $ 1,695,827 Property and equipment additions $ 1,384,253 $ 325,529 $ 1,709,782 Net working capitall $ 380,910 $ 217,024 $ 597,934 Total assets $ 6,847,627 $ 8,472,686 $ 15,320,313 Total equity $ 6,831,793 $ 8,466,893 $ 15,298,686 c 1'\ ~ ~ ~ ~ '" --. -25- ~ C C C C C C C - -- -=---~~--- - -- " 1 I ! J I .. I ) ! '" . J I j I I i I - I . I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 9 - TRANSFERS The following transfers were made during the year ended December 31, 1991: A. Operating Transfers Transferred To Transferred From Amount Description General Fund Tax Increment Capital Project $ 24,000 To reimburse administrative costs Fund - TIF Project 1-1 Account related to tax increments. General Fund Tax Increment Capital Project 6,000 To reimburse administrative costs Fund - TIF Project 1-2 Account related to tax increments. General Fund Administrative Trust Fund 104,800 To fund administrative costs. Drainage and Mapping State-Aid Capital Project Fund - 5,127 To transfer amounts assessed for Special Revenue Fund State-Aid Revolving Account mapping costs. Drainage and Mapping Special Assessment Capital 3,075 To transfer amounts assessed for Special Revenue Fund Project Fund - Unfmanced mapping costs. Improvement Account State- Aid Capital Project State-Aid Capital Project 158,316 To reimburse construction costs Fund - State-Aid 1989 Fund - State-Aid 1988B charged to State-Aid 1989 Construction Account Construction Account Construction Account. Special Assessment Capital Special Assessment Bonds Debt 75,918 To reimburse improvements Project Fund - Unfmanced Service Fund - Improvement unfmanced for 1988 projects Improvement Account Bonds of 1989A Account funded by 1989 bond issue. Special Assessment Bonds Debt Special Assessment Bonds 262,102 To reimburse bond accounts for Service Fund - Improvement Debt Service Fund - Water projects assessed in other Bonds Series 1988A Account Trunk Account accounts. Special Assessment Bonds Debt Special Assessment Bonds 159,309 To reimburse bond accounts for Service Fund - Improvement Debt Service Fund - Sewer projects assessed in other Bonds Series 1988A Account Trunk Account accounts. Special Assessment Bonds Special Assessment Capital 74,315 To transfer amounts assessed for Debt Service Fund - Water Project Fund - U nfmanced water trunk projects in other Trunk Account Improvement Account accounts. Special Assessment Bonds Special Assessment Capital 17,598 To transfer amounts assessed for Debt Service Fund - Sewer Project Fund - Unfmanced sewer trunk projects in other Trunk Account Improvement Account accounts. Certificates of Indebtedness Sewer Enterprise Fund 37,630 To reimburse Certificates of Debt Service Fund Indebtedness for amounts used to purchase Sewer Fund equipment. Sewer Enterprise Fund Special Assessment Bonds 30,500 To reimburse lost revenue from Debt Service Fund - Sewer lower rates due to excess trunk Trunk Account charges in prior years. Administrative Trust Fund Special Assessment Capital 2,700 To transfer amounts assessed for Project Fund - State-Aid administrative costs. Revolving Account Administrative Trust Fund Special Assessment Capital To transfer amounts assessed for Project Fund - Unfmanced administrative costs. Improvement Account 17.760 Total $ 979.150 -26- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 9 - TRANSFERS (CONTINUED) B. Residual Equity Transfers Transferred To Special Assessment Bonds Debt Service Fund - Improvement Bonds Series 1988A Account Special Assessment Bonds Debt Service Fund - Improvement Bonds Series 1986B Account State-Aid Capital Project Fund - State-Aid Project Account State-Aid Capital Project Fund - State-Aid 1989 Construction Account Permanent Improvement Revolving Capital Project Fund Permanent Improvement Revolving Capital Project Fund Transferred From Special Assessment Capital Project Fund - Improvement Bonds Series 1988A Construction Account Special Assessment Capital Project Fund - Improvement Bonds Series 1986B Construction Account State-Aid Capital Project Fund - State-Aid 1988B Construction Account State-Aid Capital Project Fund - State-Aid Project Account Special Assessment Bonds Debt Service Fund - Improvement Bonds Series 1980A Account Special Assessment Bonds Debt Service Fund - Refunding Bonds Series 1986A Account Total NOTE 10 - INDIVIDUAL FUND DISCLOSURES The following funds had deficits as of December 31, 1991: Debt Service Funds 1991A G.O. Bonds Certificates of Indebtedness Capital Project Funds 1990 Equipment Special Assessment Amount Description $ 1,194,951 To close Improvement Bonds Series 1988A Construction Account. 199,095 To close Improvement Bonds Series 1986B Construction Account. 17,519 To close State-Aid 1988B Construction Account. 178 To close State-Aid 1989 Construction Account. 4,745 To close Improvement Bonds Series 1980A Account. To close Refunding Bonds Series 1986A Account. 66.889 $ 1,483,377 Fund Deficit $ 26,270 $ 4,980 $ 9,313 $ 743,522 The deficits in the Debt Service Funds will be financed through future years' tax levies. The deficit in the Special Assessment Capital Project Fund will be financed through General Obligation Bonds to be issued in 1992. The deficit in the 1990 Equipment Capital Project Fund will be financed through a reimbursement from the Stale of Minnesota. >-- -27- 1--.. o ~ 11 I ~ lII! l.J c c c c c ~ c m ~ ~ 11II ~ c c c c c J I I I II i I h ]!I i I ~ - I . I j I ~I -I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 10 - INDIVIDUAL FUND DISCLOSURES (CONTINUED) For various reasons, certain funds have a portion of their fund equity designated for specific purposes. A discussion of each such item as it appears on the Combined Balance Sheet follows: o Reserved for Debt Service - These amounts represent fund balances which are presently committed to provide financial resources to pay principal and interest on the City's General Obligation Bonds and Certificates of Indebtedness. o Designated for Working Capital - This amount represents funds set aside by the City to provide positive cash flow for the next fiscal year. o Designated for Capital Projects - These amounts represent assets which are presently committed to construct various capital projects or acquire major capital items. o Designated for Equipment - This amount represents assets which are presently committed for the purchase of equipment. For 1991, expenditures at the fund level exceeded appropriations as follows: Amount Over Budget Debt Service Funds 1991A G.O. Bonds $ State-Aid Bonds Special Assessment Bonds 72,813 297 410,840 NOTE 11 - DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City of Andover are covered by defined benefit pension plans administered by the Public Employees' Retirement Association of Minnesota (PERA). PERA administers the Public Employees' Retirement Fund (PERF) and the Public Employees' Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer 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 ended December 31, 1991 was $675,630. The City has no employees covered by PEPFF. The City's total payroll was $797,550. -28- CITY OF ANDOVER ,. I 11II Notes to Financial Statements (continued) December 31, 1991 ~ u c c NOTE 11- DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon the death of eligible mt~mbers. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a 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 2.0% of the average salary for each of the first ten years of service and 2.5% for each remaining year. For a Coordinated member, the annuity accrual rate is 1.0% of the average salary for each of the first ten years and 1.5% for each remaining year. Using Method 2, the annuity accrual rate is 2.5% of the average salary for Basic members and 1.5% for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5% for each year of service. For PERF 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. c B. Contributions Require,d and Contributions Made c I o. C I, ~I ~ I ~.. ' Ii i iii 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. 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, Subdivision 4(g), the date of full funding required for the PERF and 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 actu<~ contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: rr III PERF (Basic and Coordinated Plans) PEPFF 4.44% 8.00% 4.81 % 12.00% 10.04% 17.56% ~ C C C C C C Statutorv Rates Employees Employer Required Rates -29- f--- - ~ >- -" .. j I ~ I ~ : I I I ~ I J . I ~ ~ I ! I =1 -I =1 I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 11 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) Total contributions made by the City during fiscal year 1991 were: Amounts Employees Employer Percentage of Covered Payroll Employees Employer PERF $ 28.579 $ 30.268 4.23% 4.48% The City's contribution for the year ended December 31, 1991 to the PERF represented 0.03 % of total contributions required of all participating entities. C. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees' Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1991 are shown below: PERF PEPFF (In Thousands) Total pension benefit obligation $ 4,458,010 $ 732,911 Net assets available for benefits, at cost (market values for PERF = $3,662,769; PEPFF = $872,430) 3.524.071 823.125 Unfunded (assets in excess of) pension benefit obligation $ 933.939 $ (90.214) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1991. Net assets available to pay pension benefits were valued as of June 30, 1991. -30- CITY OF ANDOVER . I .. Notes to Financial Statements (continued) December 31, 1991 ~ During the 1991 L(~gislative Session, benefit improvements were obtained for survivors of members in the Bask Plan and the Police and Fire Fund. In the Basic Plan, the maximum family death benefit was inereased from $1,000 per month to 70% of the member's average salary. In the Police and Fire Fund, children's benefits were restored for families of disabled members who had chosen the joint and survivor annuity option before death. The effect of these changes increased the pension benefit obligation in the PERF by $4,016,869 and had essentially no effect on the pension benefit obligation in the PEPFF. c c c c c w m m ~ NOTE 11 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) 2. Changes in Benefit Provisions D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1991. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pe:nsion benefits as they become due. E. Related Party Investments As of June 30, 1991, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. NOTE 12 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION A. Plan Description Cj Members of the City's volunteer fire department are members of the Andover Fire Fighters' Relief Association. The Association is a single-employer defined contribution plan that was established in 1979, and operates under the provisions of Minnesota Statutes Sections 69 and 424A, as amended. It is governed by a Board consisting of six officers and trustees elected by the members of the Association for three-year terms. The City Mayor, City Clerk, and Fire Chief are ex-officio members of the Board of Trustees. The payroll for City employees who are members of the Association for the year ended December 31, 1991 was $77,284. The City's total payroll was $797,550. ~ ~ ~ For financial reporting purposes, the Association's financial statements are not included in the City of Andover's financial statements because the Association is not a component unit of the City. c B. Pension Benefits ~ Minnesota State Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A fire fighter who completes at least 20 years as an active member of the municipal fire department to which the Association is associated, and has been a member of the Relief Association for at least 10 years prior to retirement after age 50, is entitled to a service pension upon retirement. -31- c c c --=- __"" --- ---=-=- c-'-- r::-- .. a=- ~ h II ~ ) I ~ II ~ j I I J I ~ j I ! "j ~ I , ~ I ~ - ~I -I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 12 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION (CONTINUED) The service pension prescribed by the Association's by-laws is a lump sum settlement equal to the amount in the individual member's account at the time of retirement. The individual member accounts are credited with an equal share of: any fire State-aid received by the Association, any municipal contributions to the Association, and any other assets of the Association's Special Pension Fund. The by-laws of the Association also provide for a reduced service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60% of the pension as prescribed by the by-laws. This percentage increases 4% per year so that at 20 years of service, the full amount prescribed is paid. A member of the Association who has completed 20 or more years of active service with the fire department prior to reaching age 50, has the right to retire from the department without forfeiting the right to a service pension. The member shall be placed on the deferred pension roll. Upon reaching age 50, the member may apply for the standard service pension as described above. The Association shall pay interest on the deferred service pension during the period of deferral. The interest rate will be compounded annually, at the rate actually earned on the assets of the Pension Fund, not to exceed 5% per year. An active member of the Association who becomes disabled to the extent that a physician shall certify that such disability will permanently prevent the member from performing his duties in the Andover Fire Department, is entitled to a disability pension equal to the balance in the member's account after 100 days of disability. If a member who has received such a disability pension should subsequently recover and return to active duty in the Andover Fire Department, any amount paid to him as a disability pension shall be deducted from his service pension accrued at the time of such disability. Upon the death of any member of the Association who is in good standing at the time of his death, the Association shall pay the member's spouse, children, or estate the balance of the member's account at the date of payment. The City of Andover has the power to levy property taxes at the direction and for the benefit of the Association, and passes through State aids allocated to the plan, in accordance with enabling State Statutes. C. Contributions Required and Contributions Made The City's contributions under the plan, determined by the Association's Board of Trustees and ratified by the City Council in accordance with enabling State Statutes, is $350 per member per year. In 1991, the City contributed $43,547 to the Association, consisting of $33,047 State aid and $10,500 fulfilling the City's $350 per member contribution obligation for the year ended December 31, 1991. The City's contribution represents 13.59% of covered payroll. -32- CITY OF ANDOVER r .. Bonds Outstanding - End of Year Tax Increment Tax Increment District - District - Development Development District No. 1-1 District No. 1-2 Redevelopment Redevelopment 472 472 1986 1986 2012 2012 $ 41,291 $ 28,929 $ 394,731 $ 240,417 $ 353,440 $ 211,488 $ 205,000 $ 1,065,000 205.000 50.000 $ $ 1.015.000 c c c c c o c c ru m m ~ Notes to Financial Statements (continued) December 31, 1991 NOTE 13 - TAX INCREMENT FINANCING DISTRICTS The City is the administering authority for the following tax increment financing districts within their respective Development Districts: Type of District Chapter Year Established Final year of District Original Tax Capacity Current Tax Capacity (For Taxes Collectible in 1991) Captured Tax Capacity Retained by Authority Total Tax Increment BOJIlds Issued Amounts Redeemed NOTE 14 - STATEMENT OF REVENUE AND EXPENDITURES - BUDGET AND ACTUAL The City did not adopt budgets for all Debt Service Funds (or accounts). Accordingly, the applicable columns of the Combined Statement of Revenue and Expenditures - Budget and Actual includes actual revenues, expenditures, and other financing sources and uses for only budgeted Debt Service Funds (or. accounts). A reconciliation of the amounts to the total for all Debt Service Fund is as follows: r Ii. -33- t C C C C = ~;::-:-- ------,-- ---~ -- --- f ) I 'II J I II I ] I .. j I ! ] I h ! i I J I -I i -I ~I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1991 NOTE 14 - STATEMENT OF REVENUE AND EXPENDITURES - BUDGET AND ACTUAL (CONTINUED) Debt Service Funds Budgeted funds and accounts Unbudgeted funds and accounts Special Assessment Bonds Fund Water Trunk Account Sewer Trunk Account 1991B G.O. Bonds Account Other Financing Revenues Expenditures Sources (Uses) $ 3,640,804 $ 9,098,587 $ 3,742,624 73,760 11,123 (187,787) 35,874 (172,211) 317 .471 113,005 $ 4,067.909 $ 9,222,715 $ 3.382,626 NOTE IS - COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31,1991, the City is committed to a number of contracts for various construction projects that were not completed by year-end. The City's remaining commitment under such contracts is approximately $75,000. B. Federal Revenue Amounts received or receivable from federal agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of funds which may be disallowed by the agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. -34- -=---=~:~-----;c--= :-~ ~ ~ [J c c c c c c c m m m m m c t ~ C C _ ____ _ _____m___ ___ -----=--- --,--:c-;:- _____n___ - II i I ; I .. ) I I I J I I I II ~I I I I I I I I I I I COMBINING AND INDIVIDUAL FUND STATEMENTS D o o c c c c w m m I ml ~ ~ tiIi ~ C C C C C - - -- I ~~ ~- ~ 11 ; ) I ! I J I ~ ) I j I = ~ I 3 ! I = I ~ - II ~I I I ~I I I I I I CTIY OF ANOOVER General Fund Comparative Balance Sheet As of December 31,1991 and 1990 Assets Cash and temporary investments Receivables Accounts Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Total assets liabilities and Fund Balance liabilities Accounts payable Accrued expenses Due to other governmental units Deferred revenue Total liabilities Fund balance Unreserved Designated for working capital Designated for equipment Total fund balance Total liabilities and fund balance -35- 1991 1990 $ 734,344 $ 668,387 20,713 23,715 6,407 4,997 38,304 35,155 350 7,102 350 73,834 80,670 $ 881,054 $ 813,274 $ 58,113 32,361 74,217 45,756 210,447 668,121 2,486 670,607 $ 881,054 $ 71,788 29,852 58,361 35,505 195,506 617,768 617,768 $ 813,274 CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Revenue Taxes ad valorem 1991 1990 Over (Under) Budget Actual Budget Actual $ 1,072,643 $ 1,017,774 $ (54,869) $ 911,255 223,710 230,298 6,588 212,793 Licenses and permits Intergovernmental revenue Federal CDBG State Local government aid HACA and other tax credits Street maintenance Fire department aid Other Total intergovern- mental revenue 37,667 37,667 66,919 45,455 45,529 74 102,657 337,572 372,110 34,538 335,007 122,000 87,487 (34,513) 22,600 22,000 33,047 11,047 21,619 65,172 64,478 (694) 67,920 592,199 640,318 48,119 616,722 17,850 22,749 4,899 18,186 51,500 56,375 4,875 54,521 3,000 3,480 480 3,255 72,350 82,604 10,254 75,962 59,000 31,750 (27,250) 46,650 30,000 27,248 (2,752) 28,147 30,000 37,119 7,119 38,480 6,143 6,923 780 3,433 66,143 71,290 5,147 70,060 2,086,045 2,074,034 (12,011) 1,933,442 Charges for services General government Street lights Utility Funds Total charges for services Fines and forfeits Other revenue Interest earned on investments Refunds and reimbursements Miscellaneous Total other revenue Total revenue Expenditures General government Council Personal services Supplies Other services and charges Total council 20,676 200 13,232 34,108 14,834 286 17,974 33,094 (5,842) 86 4,742 (1,014) 14,675 99 12,839 27,613 (continued) -36- -----=-co:: ,-----=--c- ~ - -:---------r-:;~-- -- --- -- "" W o c c c c c c m ~ * m ~ c ~ ~ C C C C ~ i J I CITY OF ANDOVER J I General Fund (continued) ! Statement of Revenue, Expenditures, and Changes in Fund Balance ;0 I Budget and Actual 1 Year Ended December 31,1991 j (with Comparative Actual Amounts for Year Ended December 31, 1990) i j I 1991 1990 Over I I (Under) Budget Actual Budget Actual ~ I Expenditures (continued) ) ~ General government (continued) - Mayor I Personal services 4,200 4,509 309 4,200 ~ Supplies 32 ~ Total mayor 4,200 4,509 309 4,232 - I Elections . ~ - Personal services 2,764 2,764 9,095 Supplies 39 39 726 I Other services and charges 32 32 296 - Total elections 2,835 2,835 10,117 - I Newsletter - Personal services 701 1,056 355 454 Other services and charges 6,130 2,050 (4,080) 5,522 I Total newsletter 6,831 3,106 (3,725) 5,976 Administration I Personal services 98,206 99,628 1,422 96,059 Supplies 1,600 1,031 (569) 1,292 Other services and charges 5,365 7,105 1,740 5,537 Total administration 105,171 107,764 2,593 102,888 I Financial administration Personal services 97,231 96,221 (1,010) 95,994 I Supplies 1,200 990 (210) 2,742 Other services and charges 4,460 5,071 611 1,728 Capital outlay 110 I Total financial administration 102,891 102,282 (609) 100,574 I Assessing Other services and charges 31,500 33,621 2,121 28,707 I Consulting staff Auditing 10,000 10,255 255 12,185 Legal 60,300 52,981 (7,319) 60,184 I Total consulting staff 70,300 63,236 (7,064) 72,369 (continued) I -37- CITY OF ANDOVER General Fund (continued) Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Expenditures (continued) General government (continued) Planning and zoning Personal services Supplies Other services and charges Total planning and zoning Data processing Supplies Capital outlay Total data processing Buildings Administration building Personal services Supplies Other servicl:s and charges Capital outlay Total administra- tion bl~ilding Fire department building Personal services Supplies Other services and charges Capital outlay Total fire depart- ment building Public works building Personal services Supplies Other servic,es and charges Capital outIa,y Total public works building "- ~ 1991 1990 Budget Actual Over (Under) Budget Actual 42,557 45,455 2,898 46,458 1,500 1,395 (105) 1,616 6,645 5,087 (1,558) 7,325 50,702 51,937 1,235 55,399 15,195 16,590 1,395 9,737 3,900 4,516 616 8,819 19,095 21,106 2,011 18,556 4,963 7,393 2,430 6,842 3,550 4,438 888 2,542 21,200 20,593 (607) 22,434 7,963 7,761 (202) 896 37,676 40,185 2,509 32,714 460 364 (96) 678 1,430 1,163 (267) 781 12,300 15,885 3,585 9,884 506 506 14,190 17,918 3,728 11,343 1,378 5,579 4,201 5,243 3,000 2,308 (692) 2,844 19,222 16,652 (2,570) 17,203 6,767 6,767 15,017 23,600 31,306 7,706 40,307 (continued) -38- -- ---~ ---~ --- .. ,. ,. i. U 01 o C C C W ~ iii ~ I ~! C C C C C C C C ~ 1 I i CITY OF ANDOVER J I General Fund (continued) t Statement of Revenue, Expenditures, and Changes in Fund Balance - - 1 I Budget and Actual ;j Year Ended December 31,1991 i (with Comparative Actual Amounts for Year Ended December 31, 1990) J I 1 1991 1990 I Over I (Under) Budget Actual Budget Actual w I Expenditures (continued) 3 General government (continued) Buildings (continued) ,. I Senior citizen center I Personal services 2,125 631 (1,494) 1,080 Supplies 600 423 (177) 63 - I Other services and charges 6,910 5,822 (1,088) 5,833 Total senior citizen center 9,635 6,876 (2,759) 6,976 - I Storage building - Supplies 360 23 (337) 158 Other services and charges 3,233 1,838 (1,395) 1,929 Capital outlay 2,952 I Total storage building 3,593 1,861 (1,732) 5,039 Total buildings 88,694 98,146 9,452 96,379 I Engineering Personal services 60,440 52,566 (7,874) 56,165 I Supplies 3,615 2,341 (1,274) 3,064 Other services and charges 7,110 3,254 (3,856) 11,739 Total engineering 71,165 58,161 (13,004) 70,968 I Total general government 584,657 579,797 (4,860) 593,778 I Public safety Police protection Supplies 100 (100) 38 Other services and charges 403,978 403,354 (624) 394,730 I Total police protection 404,078 403,354 (724) 394,768 Fire protection I Personal services 105,445 107,216 1,771 71,409 Supplies 36,002 28,783 (7,219) 28,838 Other services and charges 56,950 52,737 (4,213) 66,954 I Relief Association 33,200 43,547 10,347 29,119 Capital outlay 1,708 1,708 1,560 Total fire protection 231,597 233,991 2,394 197,880 I I -39- (continued) 0 ! : CITY OF ANDOVER General Fund (continued) U Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual C Year Ended December 31,1991 (with Com.parative Actual Amounts for Year Ended December 31, 1990) 1991 1990 C ! Over (Under) C Budget Actual Budget Actual Expenditures (continued) C Public safety (continued) Rescue service Personal services 15,586 18,921 3,335 16,536 C Supplies 4,956 4,021 (935) 3,025 Other services and charges 16,515 8,273 (8,242) 9,549 Total rescue service 37,057 31,215 (5,842) 29,110 W Protective inspection Personal services 115,776 115,825 49 111,757 Supplies 7,629 6,369 (1,260) 6,926 W Other services and charges 4,125 3,106 (1,019) 3,283 Capital outlay 582 Other 74 ~ Total protective inspection 127,530 125,300 (2,230) 122,622 Civil defense C Supplies 1,250 74 (1,176) Other services and charges 1,050 1,357 307 543 Total civil defense 2,300 1,431 (869) 543 C Animal control Personal services 280 280 111 Supplies 98 98 150 C Other services and charges 9,096 9,724 628 9,730 Total animal control 9,096 10,102 1,006 9,991 Total p'~blic safety 811,658 805,393 (6,265) 754,914 C Public works C Streets and highways Personal services 89,535 86,255 (3,280) 77,069 Supplies 22,911 27,590 4,679 18,476 C Other services aDld charges 31,677 26,964 (4,713) 25,696 Capital outlay 69,665 17,224 (52,441) 23,326 Total streets and highways 213,788 158,033 (55,755) 144,567 C C -40- (continued) C -~-- ~I- - ----- - >->- , --- --- - ! I CITY OF ANDOVER - I General Fund (continued) Statement of Revenue, Expenditures, and Changes in Fund Balance I Budget and Actual Year Ended December 31,1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) I 1991 1990 Over -I (Under) Budget Actual Budget Actual I Expenditures (continued) Public works (continued) Snow and ice removal I Personal services 65,318 58,057 (7,261) 32,355 Supplies 42,746 57,375 14,629 33,550 Other services and charges 14,288 15,497 1,209 12,227 I Capital outlay 283 Total snow and ice removal 122,352 130,929 8,577 78,415 I Street lighting Other services and charges City 15,000 14,067 (933) 13,445 I Billable 38,000 42,038 4,038 37,069 Total street lighting 53,000 56,105 3,105 50,514 I Street signs/signals Personal services 18,210 13,574 (4,636) 22,609 Supplies 12,700 6,276 (6,424) 5,025 I Other services and charges 3,696 7,542 3,846 3,368 Capital outlay 1,679 1,679 2,548 Total street signs/signals 34,606 29,071 (5,535) 33,550 I Total public works 423,746 374,138 (49,608) 307,046 Sanitation I Storm sewers Personal services 17,574 7,715 (9,859) 17,185 Supplies 3,187 1,577 (1,610) 1,957 I Other services and charges 2,060 295 (1,765) 255 Capital outlay 283 Total storm sewers 22,821 9,587 (13,234) 19,680 I Trees and weed control Personal services 4,731 4,581 (150) 9,186 I Supplies 660 105 (555) 106 Other services and charges 4,085 558 (3,527) 196 Total trees and weed control 9,476 5,244 (4,232) 9,488 I Total sanitation 32,297 14,831 (17,466) 29,168 I -41- (continued) ~ I CIlY OF ANDOVER .. .. General Fund (continued) ~ Statem'~nt of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual ~ Year Ended December 31, 1991 WI (with Comparative Actual Amounts for Year Ended December 31, 1990) . 1991 1990 ~ Over (Under) ~ Budget Actual Budget Actual Expenditures (continued) r Parks and recreation Personal services 76,373 96,825 20,452 82,917 .. Supplies 20,290 22,194 1,904 18,367 ~ Other services and charges 18,593 19,114 521 23,298 Community education programs 41,141 36,658 (4,483) 39,658 ill Assessments 17,800 21,390 3,590 21,388 Capital outlay 45,700 48,916 3,216 75,821 C Total parks and wcreation 219,897 245,097 25,200 261,449 Recycling C Personal services 14,750 10,841 (3,909) 10,581 Supplies 2,225 1,548 (677) 1,358 C Other services and charges 11,300 11,654 354 7,164 Capital outlay 8,854 22,728 13,874 20,464 Total recycling 37,129 46,771 9,642 39,567 ~ ; \ Economic development Personal services 15,344 17,058 1,714 14,056 Supplies 300 238 (62) 140 C Other services and ch21rges 900 151 (749) 93 Total e<:onomic development 16,544 17,447 903 14,289 C Unallocated CDBG 36,082 36,082 71,832 C Metropolitan Waste Control Commission 2,873 2,872 (1) 4,300 Insurance 20,050 27,030 6,980 26,602 LRRWMOO 2,800 2,540 (260) 2,019 C SiteQ 10,000 2,075 (7,925) 19,786 Crooked Lake cleanup 190 Miscellaneous 850 1,922 1,072 4,860 C Contingency 43,544 (43,544) Total unallocated 80,117 72,521 (7,596) 129,589 Total expenditures 2,206,045 2,155,995 (50,050) 2,129,800 C Excess (deficiency) of revenue over expenditures (120,000) (81,961) 38,039 (196,358) C -42- ( continued) C ~- - ----- - - - --- ---------- - - --- ---r.:::;~1 - - - - h J I II .. j I J I ~ I - I - I -I I I I I I I I I I I CITY OF ANDOVER General Fund (continued) Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) 1991 1990 Over (Under) Budget Actual Budget Actual Other financing sources Operating transfers in Debt Service Funds 30,000 30,000 Capital Project Funds 6,000 Administrative Trust Fund 90,000 104,800 14,800 182,318 Total other financing sources 120,000 134,800 14,800 188,318 Excess (deficiency) of revenue and other financing sources over expenditures $ 52,839 $ 52,839 (8,040) Fund balance Beginning of year 617,768 614,903 Residual equity transfers in 10,905 End of year $ 670,607 $ 617,768 -43- CITY OF ANDOVER Special Revenue Funds Combining Balance Sheet As of December 31,1991 . (with Comparative Totals as of December 31, 1990) lRRWMO Assetl, Cash and temporary investments Receivables Accrued interest Delinquent special assessments $ 5,186 935 Total assets $ 6,121 liabilities and Flmd Balance liabili ti es Accounts payable Deferred revenue Total liabilities $ Fund balance Unreserved Undesignated 6,121 Total liabilities and fund balance $ 6,121 -44- - ~;::- -~--=- -=-1 Draining and Mapping $ 60,906 $ 61,017 $ 405 21 426 60,591 $ 61,017 c c Totals 1991 1990 c c c c c c w ~ $ 66,092 $ 64,464 1,025 948 21 24 90 21 $ 67,138 $ 405 21 426 66,712 $ 67,138 $ 65,436 $ 24 24 65,412 ~ $ 65,436 c c c C r .. ~ ,., . c ,._-~--------_. h )- j I ;! ~ I ~ .. ... ~ I j ; I ; I - I -I I I I I I I I I I I CITY OF ANDOVER Special Revenue Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Drainage and Totals LRRWMO Mapping 1991 1990 Revenue Special assessments $ $ 3 $ 3 $ 3 Other revenue Interest earned on investments 1,241 3,497 4,738 5,772 Total revenue 1,241 3,500 4,741 5,775 Expenditures Public works Other services and charges 11,643 11,643 2,547 Excess (deficiency) of revenue over expenditures 1,241 (8,143) (6,902) 3,228 Other financing sources Operating transfers in Capital Project Funds 8,202 8,202 1,801 Excess of revenue and other financing sources over expenditures 1,241 59 1,300 5,029 Fund balance Beginning of year 4,880 60,532 65,412 60,383 End of year $ 6,121 $ 60,591 $ 66,712 $ 65,412 -45- CTIY OF ANDOVER Debt Service Funds Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31,1990) 1991A G.O. Bonds Assets Cash and temporary investments Receivables Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Due from developer $ 95 Total assets $ 95 Uabilities and Fund Balance Uabilities Cash deficit Accounts payable Accrued expenses Due to other governmental units Deferred revenue Arbitrage rebate Total liabilities $ 26,365 26,365 Fund balance (deficit) Reserved for debt service Unreserved Undesignated Total fund balance (deficit) (26,270) (26,270) $ 95 Total liabilities and fund balance -46- - I - Certificates of Indebtedness $ 4,091 1,548 $ 5,639 $ 5,657 871 4,091 10,619 (4,980) (4,980) $ 5,639 ~...=--r--- ~ ~ ~ .. State- Aid Bonds c c c c c $ 11,999 76 m IiII $ 12,075 ~ ~ ~ C !!II ~ C C C C C C $ 12,075 12,075 $ 12,075 h j- ). J I Tax Special - Increment Assessment Totals II Bonds Bonds 1991 1990 - ! I $ 1,160,011 $ 8,623,207 $ 9,795,217 $ 10,155,600 ~ I 17,650 147,884 165,705 157,301 21,927 26,018 45,466 - 71,691 245,318 317,009 194,540 ~ I 5,993,429 5,993,429 7,984,891 16,355 910,597 928,500 1,147,785 216,490 216,490 229,051 -I $ 1,504,124 $ 15,920,435 $ 17,442,368 $ 19,914,634 ;1 $ $ $ 32,022 $ 8,674 I 9,677 9,677 11,948 2,893 3,764 4,054 26 26 I 310,108 7,133,114 7,447,313 9,501,760 11,137 11,137 310,108 7,156,847 7,503,939 9,526,436 I 1,194,016 8,763,588 9,969,679 10,395,982 I (31,250) (7,784) 1,194,016 8,763,588 9,938,429 10,388,198 I $ 1,504,124 $ 15,920,435 $ 17,442,368 $ 19,914,634 I I I I -47- fI! mY OF ANDOVER .. Debt SeIVice Funds 0 Combining Statemmt of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) C 1991A Certificates State- G.O. of Aid C Bonds Indebtedness Bonds Revenue Taxes ad valorem $ $ 86,585 $ 0 Tax increments Special assessments Intergovernmental revenue State aids 142,400 C HACA and other tax credits 32,692 County reimbursemc:,nts Other revenue C Interest earned on investments 24,666 862 Sale of land Miscellaneous 6,877 Total revenue 31,543 119,277 143,262 ~ Expenditures Debt seIVice ~ PrincipiI retirement 125,000 100,000 Interest 72,813 29,103 43,900 .. Arbitrage rebate Other 1,297 ~ Total expenditures 72,813 154,103 145,197 Excess (deficiency) of ~ revenue over expenditures (41,270) (34,826) (1,935) Other financing sources (uses) Bonds proceeds 15,000 C Operating transfers in Debt SeIVice Funds Capital Project Funds C Enterprise Funds 37,630 Operating transfers (out) General Fund Debt SeIVice Funds C Capital Project Funds Enterprise Funds Total other financing sources (uses) 15,000 37,630 C Excess (deficillncy) of revenue and other financing sources over expen- C ditures and other financing uses (26,270) 2,804 (1,935) Fund balance (deficit) Beginning of year (7,784) 14,010 C Residual equity transfers in Residual equity transfers (out) End of year $ (26,270) $ (4,980) $ 12,075 C -48- C -,---:=:-=---,-------c-,----:-- - - ----- ------ - ----~ -- ------=---------r;~ -- -~- ~ .. I I ~ ! I ~ I ~ - Tax Special I Increment Assessment Totals - Bonds Bonds 1991 1990 I $ $ $ 86,585 $ 80,687 - ~ 544,544 544,544 449,064 = - 5,166 2,382,352 2,387,518 3,169,799 - I 142,400 270,617 - 277 32,969 26,123 29,318 - I 68,614 666,807 760,949 1,092,470 55,627 55,627 5,000 25,867 24,573 57,317 24,808 - I 700,095 3,073,732 4,067,909 5,147,886 - ~ I 35,000 6,891,000 7,151,000 9,399,400 98,450 1,502,881 1,747,147 1,818,555 234,916 234,916 I 88,355 89,652 313,253 133,450 8,717,152 9,222,715 11,531,208 I 566,645 (5,643,420) (5,154,806) (6,383,322) I 3,374,500 3,389,500 4,031,476 421,411 421,411 785,134 I 91,913 91,913 75,084 37,630 I (30,000) (30,000) (421,411) (421,411) (785,134) (75,918) (75,918) (30,500) (30,500) (30,500) I (30,000) 3,359,995 3,382,625 4,076,060 I 536,645 (2,283,42.';) (1,772,181) (2,307,262) I 657,371 9,724,601 10,388,198 12,389,593 1,394,046 1,394,046 996,307 (71 ,634) (71,634) (690,440) I $ 1,194,016 $ 8,763,588 $ 9,938,429 $ 10,388,198 I -49- CITY OF ANOOVER 1991A G.O. Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1991 Revenue Interest earned on invfstments Miscellaneous Total revenue Over (Under) Budget Actual Budget $ $ 24,666 $ 24,666 6,877 6,877 31,543 31,543 Expenditures Debt service Interest 72,813 72,813 Excess (deficiency) of revenue over expenditures (41,270) (41,270) Other financing sources Bond proceeds 15,000 (110,000) 125,000 Excess (deficiency) ofrevenue and other :tinancing sources over expenditures $ 125,000 (26,270) $ (151,270) Fund balance (deficit) Beginning of year End of year $ (26,270) -50- - ~oc--~-----, ----- t:- c c c c c c c ~ c ~ ~ C C C C C C c m - ! I CITY OF ANOOVER - I Certificates of Indebtedness Debt Service Fund ~ ~ Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual - I Year Ended December 31,1991 - (with CompuativeActual Amounts for Year Ended December 31,1990) - - ~ - I - - 1991 1990 I Over - (Under) - Budget Actual Budget Actual I Revenue Taxes ad valorem $ 94,855 $ 86,585 $ (8,270) $ 80,687 I Intergovernmental revenue HACA and other tax credits 25,000 32,692 7,692 25,254 Total revenue 119,855 119,277 (578) 105,941 I Expenditures Debt service I Principal retirement 125,000 125,000 95,000 Interest 32,485 29,103 (3,382) 14,974 Other 3,751 I Total expenditures 157,485 154,103 (3,382) 113,725 Excess (deficiency) of I revenue over expenditures (37,630) (34,826) 2,804 (7,784) Other financing sources Operating transfers in I Enterprise Funds 37,630 37,630 Excess (deficiency) of I revenue and other financing sources over expenditures $ 2,804 $ 2,804 (7,784) I Fund balance (deficit) Beginning of year (7,784) I End of year $ (4,980) $ (7,784) I I I I -51- c c c 0' c c m m. m ~ ~ c c ~ ~ c c c c c ~ ~____ - I -- )o.-,j~ -- -- 0';; I I ; I I - I - I I = I - I -I -I I I I I I I I I I CITY OF ANDOVER State-Aid Bonds Debt Service Fund Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31,1990) State-Aid Bonds of 1984 Account Assets Cash and temporary investments Receivables Accrued interest $ 124 2 $ 126 Total assets Fund Balance Fund balance Reserved for debt service $ 126 -52- State-Aid Bonds of 1988 Account $ 11,875 74 $ 11,949 $ 11,949 Totals 1991 1990 $ 11,999 $ 13,851 76 159 $ 12,075 $ 14,010 $ 12,075 $ 14,010 CITY OF ANDOVER State-Aid Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1991 (with Compnative Actual Amounts for Year Ended December 31, 1990) 100,000 50,000 50,000 100,000 44,400 18,100 25,800 43,900 500 651 646 1,297 144,900 68,751 76,446 145,197 (500) (278) (1,657) (1,935) Budget State-Aid Bonds of 1984 Account Revenue Intergovernmental revenue State aids Other revenue Interest earned on inv,estments Total revenue $ 144,400 $ 68,100 373 68,473 144,400 Expenditures Debt service Principal retirement Interest Other Total expenditur,es Excess (deficiency) of revenue over expenditures Other financing sources Operating transfers in Capital Project Funds Excess (deficiency) of revenue and other financing sources over expenditures $ (500) (278) Fund balance Beginning of year 404 End of year $ 126 -53- 4- 1991 Actual State-Aid Bonds of 1988 Account $ 74,300 489 74,789 (1,657) 13,606 $ 11,949 >---" Total $ 142,400 862 143,262 (1,935) 14,010 $ 12,075 c c c c c c c m c c : ~ ~ C ~ ~ C C C ~ ,.i;! - ~ ~ I - ! I ~ I - - ~ I 1990 - I - Over I (Under) - Budget Actual - I ~ $ (2,000) $ 149,350 -I 862 1,110 (1,138) 150,460 -I 100,000 I (500) 50,800 797 1,295 297 152,095 I (1,435) (1,635) I I 1,706 I $ (1,435) 71 I 13,939 I $ 14,010 I I -54- I ~~ - - I- c c c c c c c m w ~ ~ ~ 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 I I I CITY OF ANDOVER Tax Increment Bonds Debt Service Fund Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31,1990) TIP Project 1-1 Account TIP Project 1-2 Account Totals 1991 1990 Assets Cash and temporary investments Receivables Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Due from developer $ 765,870 $ 394,141 $ 1,160,011 $ 644,271 11,871 5,779 17,650 7,987 21,927 21,927 41,438 71,691 71,691 70,166 16,355 16,355 5,113 216,490 216,490 229,051 $ 887,714 $ 616,410 $ 1.504,124 $ 998,026 Total assets Uabilities and Fund Balance Uabilities Deferred revenue $ 93,618 $ 216,490 $ 310,108 $ 340,655 Fund balance Reserved for debt service 794,096 399,920 1,194,016 657,371 Total liabilities and fund balance $ 887.714 $ 616,410 $ 1,504.124 $ 998,026 -55- CITY OF ANDOVER Tax Increment Bonds Debt Service Food Statement of Revenue, Expenditures, and Changes in Food Balance Budget and Actual Year Ended December 31, 1991 (with Comparative Actual AmOOOts for Year Ended December 31, 1990) Revenue Tax increments Special assessments Intergovernmental revenue HACA and other tax l:redits Other revenue Interest earned on investments Sale ofland Miscellaneous Total revenue 1991 Actual TIF TIP Project Project 1-1 1-2 Budget ACCOoot Accooot $ 227,000 $ 343,284 $ 201,260 5,166 55,000 277 29,500 47,566 21,048 55,627 25,867 311,500 451,643 248,452 Expenditures Debt service Principal retirement Interest Other Total expenditures Excess of revenue over expenditures 35,000 35,000 99,938 98,450 600 135,538 133,450 175,962 451,643 115,002 Other financing uses Operating transfers (out) General Food (24,000) (6,000) Excess of revenue over expenditures and other financing uses $ 175,962 427,643 109,002 Food balance Beginning of year 366,453 $ 794,096 290,918 $ 399,920 End of year -56- -- no ------,::i==-r-- - - ~- ~ ~ c c c c c m c ~ ~i ~ ~ C ~ C C C C C C h J I '" I :jj ~ ~ - - I ~ "l - 1990 - - - I ~ Over - I (Under) ~ Total Budget Actual - I - $ 544,544 $ 317,544 $ 449,064 5,166 5,166 - - I 277 (54,723) 869 ~I 68,614 39,114 51,240 55,627 55,627 5,000 25,867 25,867 23,877 ,I 700,095 388,595 530,050 I 35,000 220,000 98,450 (1,488) 118,617 (600) 757 I 133,450 (2,088) 339,374 566,645 390,683 190,676 I I (30,000) (30,000) I 536,645 $ 360,683 190,676 I 657,371 466,695 I $ 1,194,016 $ 657,371 I I -57- CITY OF ANDOVER Special Assessment Bonds Debt SelVice Fund Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31,1990) Assets Cash and temporary investments Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other govern- mental units Total assets Uabilities and Fund Balance Uabilities Accounts payable Accrued expenses Due to other govemmenta![ units Deferred revenue Arbitrage rebate Total liabilities Fund balance ReselVed for debt selVice Total liabilities and fund balance --C:-=O:;--- ----=--=--:::-:j Improvement Bonds Series 1977A Account $ 725,117 13,434 1,723 249,546 1,482 $ 991,302 $ 251,269 251,269 740,033 $ 991,302 -58- Improvement Bonds of 1978 Account $ 143,854 2,430 53,682 $ 199,966 $ 53,682 53,682 146,284 $ 199,966 Improvement Bonds of 1979 Account $ 104,145 1,737 31,053 201 $ 137,136 $ 31,053 31,053 106,083 $ 137,136 Improvement Bonds Series 1980A Account c c c c c c c m w m $ $ $ ~ ~ C C C C C C ~ $ ~_l ?r �r =r ' r Improvement Improvement Improvement Improvement Improvement Refunding r Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series 1980C 1985A 1985B 1986A 1986B 1986A Account Account Account Account Account Account �r $ 10,686 $ 317,802 $ 1,246,006 $ 1,350,725 $ 40,921 $ - r 186 5,421 20,766 23,384 3,402 - - - 11,929 3,041 2,051 - r - 43,208 535,346 41,028 89,401 - - - 3,579 323 - - r $ 10,872 $ 366,431 $ 1,817,626 $ 1,418,501 $ 135,775 $ - r r - $ - $ - $ - $ - - - - 2,893 - r - - - - 547 18 - 43,208 ,275 44,069 91,453 - 43,208 547,275 44,069 94,364 - r 10,872 323,223 1,270,351 1,374,432 41,411 - r $ 10.872 $ 366,431 $ 1,817,626 $ 1,418,501 $ 135,775 $ - r r r r (continued) -59- CITY OF ANOOVER Special Assessment Bonds Debt Service Fund (continued) Balance Sheet As of December 31,1991 (with Comparative Totals as of December 31, 1990) Refunding Improvement Improvement Improvement Bonds Series Bonds of Bonds of Bonds Series 1986C 1988 1989 1990A Account Account Account Account Assets Cash and temporary investments $ 1,864,117 $ $ 289,351 $ 964,072 Receivables Accrued interest 31,197 4,488 17,752 Delinquent special assessments 57,803 41,326 68,285 Deferred special assessments 1,058,732 514,668 1,456,181 Due from other govern- mental units 5,825 64,726 Total assets $ 3,017,674 $ $ 849,833 $ 2,571,016 liabilities and Fund Balance liabilities Accounts payable $ $ $ 8 $ 28 Accrued expenses Due to other governmental units Deferred revenue 1,116,535 555,994 1,584,520 Arbitrage rebate 9,528 Total liabilities 1,116,535 556,002 1,594,076 Fund balance Reserved for debt service 1,901,139 293,831 976,940 Total liabilities and fund balance $ 3,017,674 $ $ 849,833 $ 2,571,016 -60- -- -;::-;;::-:-- --=--~ ---=---~-G~-~ - -- c c c c, c c c w ~,' ~ ~ ~ C C D C C 11II ~ c c --' .. I ~ - ~ I - I ! - - - = I - Improvement Bonds Series 1991B Water Sewer ~ I 1990B G.O. Bonds Trunk Trunk Totals - ~ Account Account Account Account 1991 1990 - I $ 53,771 $ 204,814 $ 853,119 $ 454,707 $ 8,623,207 $ 9,497,478 - I 1,190 959 13,479 8,059 147,884 149,155 1,054 57,792 314 245,318 194,540 -I 342,962 1,557,229 9,196 11,197 5,993,429 7,914,725 265,458 568,875 128 910,597 1,141,178 -I $ 664,435 $ 2,389,669 $ 875,794 $ 474,405 $ 15,920,435 $ 18,897,076 I I $ $ 1,299 $ 8,342 $ $ 9,677 $ 11,948 2,893 3,450 8 26 I 609,453 2,183,896 9,196 11,511 7,133,114 9,157,077 1,609 11,137 611,062 2,185,203 17,538 11 ,511 7,156,847 9,172,475 I 53,373 204,466 858,256 462,894 8,763,588 9,724,601 I $ 664,435 $ 2,389,669 $ 875,794 $ 474,405 $ 15,920,435 $ 18,897,076 I I I I -61- I Q1Y OF ANDOVER Special Assessment Bonds Debt Service Fund Statement of Revenue, Expenditures, and OIanges in Fund Balance Budget and Actual Year Fnded December 31, 1991 (with Comparative Totals for Year Fnded December 31, 1990) Revenue Special assessments Intergovernmental revenue State aids County reimbursements Other revenue Interest earned on investments Miscellaneous Total revenue Improvement Improvement Improvement Bonds Series Bonds of Bonds of 1977A 1978 1979 Budget Account Account Account $ 1,783,651 $ 41,010 $ 16,191 $ 16,474 467,036 2,250,687 58,462 99,472 10,318 26,509 7,157 23,631 Expenditures Debt service Principal retirement Interest Arbitrage reoote Other Total expenditures Excess (deficiency) of revenue over expenditures 6,891,000 40,000 15,000 20,000 1,401,412 43,250 8,745 7,150 13,900 400 529 8,306,312 83,250 24,145 27,679 (6,055,625) 16,222 2,364 (4,048) 3,000,000 Other financing sources (uses) Bond proceeds Operating transfers in Debt Service Funds Capital Project Funds Operating transfers (out) Debt Service Funds Capital Project Funds Fntelprise Funds Total other financing sources (uses) (175,000) 2,825,000 Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses 16,222 2,364 (4,048) $ (3,230,625) Fund oolance Beginning of year Residual equity transfers in Residual equity transfers (out) 72.1,811 143,920 110,131 Fnd of year $ 740,033 $ 146,284 $ 106,083 -62- ---.----- -I- ~ .,; c c c c c c w ~ ~. ~ . ~ 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 Improvement Bond<; Series 1980A Account $ 9,153 9,153 65,000 3,044 200 68,244 (59,091 ) (59,091) 63,836 (4,745) $ 1991 Actual Improvement Improvement Bond<; Series Bond<; Series 1980C 1985A Account Account $ $ 13,855 814 23,820 37,675 814 20,000 19,575 652 40,227 814 (2,552) 814 (2,552) 10,058 325,775 $ 10,872 $ 323,223 Improvement Bond<; Series 1985B Account $ 155,518 93,032 248,550 170,000 149,090 662 319,752 (71,202) (71,202) 1,341,553 $ 1,270,351 -63- Improvement Bond<; Series 1986A Account $ 14,142 105,015 119,157 125,000 105,190 663 230,853 (111,696) (111,696) 1,486,128 $ 1,374,432 Improvement Bond<; Series 1986B Account $ 96,328 96,328 240,000 108,522 680 349,202 (252,874) (252,874) 95,190 199,095 $ 41,411 Refunding Bond<; Series 1986A Account $ 27,997 3,788 31,785 36,000 2,610 38,610 (6,825) (6,825) 73,714 (66,889) $ (continued) Q1Y OF ANOOVER, MINNESOTA 0 Special Assessment Bonds Debt Service Fund (continued) C Statement of Revenue, Expenditures, and Olanges in Fund Balance Budget and Actual Year Ended December 31, 1991 ~ (with Comparative Totals for Year Ended December 31, 1990) 1991 Actual C Refunding Improvement Improvement Improvement Bonds Series Bonds of Bonds of Bonds Series 1986C 1988 1989 1990A Account Account Account Account W ;1 Revenue Special assessments $ 247,142 $ 453,245 $ 207,444 $ 637,288 Intergovernmental revenue C State aids County reimbursements Other revenue C Interest earned on investments 140,602 34,138 21,374 67,988 Miscellaneous 8,670 345 Total revenue 387,744 496,053 228,818 705,621 ~ Expenditures : ! Debt service Principal retirement 210,000 5,800,000 150,000 Interest 168,980 348,000 199,225 156,250 ~ ' ! Arbitrage rehlte 94,000 122,742 Other 40,732 6,316 717 2,581 Total expenditures 419,712 6,248,316 349,942 281,573 ~ Excess (deficiency) of revenue over expenditures (31,968) (5,752,263) (121,124) 424,048 ~ Other financing sources (uses) Bondpro<:eem 3,374,500 Operating transfers in ~ Debt Service Funds 421,411 ~ i . ... Capital Project Funds Operating transfers (out) ~ Debt Service Funds Capital Project Funds (75,918) Entetprise Funds C Total other financinl~ sources (uses) 3,795,911 (75,918) Excess (deficiency) of C revenue and other financing sources over expenditures and other C financing uses (31,968) (1,956,352) (197,042) 424,048 Fund hllance Beginning of year 1,933,107 761,401 490,873 552,892 C Residual equity transfers in 1,194,951 Residual equity transfers (out) End of year $ 1,901,139 $ $ 293,831 $ 976,940 C -64- e -- --- ,- ---- ----- ------- ~ " -> ----.-- I I ~ i I "; I J 1990 i I Improvement Bonds Series 1991B Water Sewer Over - I 1990B G.O. Bonds Trunk Trunk (Under) - Account Account Account Account Total Budget Actual - - - $ 126,044 $ 313,804 $ 4,412 $ 2,305 $ 2,382,352 $ 598,701 $ 3,169,799 - I ~ 121,267 - 29,318 - I 8,853 3,667 56,899 30,880 666,807 199,771 1,031,315 420 12,449 2,689 24,573 24,573 931 - I 135,317 317,471 73,760 35,874 3,073,732 823,045 4,352,630 - I 6,891,000 8,984,400 - 91,450 91,800 1,502,881 101,469 1,634,164 18,174 234,916 234,916 I 1,895 21,205 11,123 88,355 74,455 307,450 111,519 113,005 11,123 8,717,152 410,840 10,926,014 I 23,798 204,466 62,637 35,874 (5,643,420) 412,205 (6,573,384) - I 3,374,500 374,500 4,031,476 421,411 421,411 785,134 74,315 17,598 91,913 91,913 73,378 I (262,102) (159,309) (421,411) (421,411) (785,134) (75,918) 99,082 I (30,500) (30,500) (30,500) (30,500) (187,787) (172,211 ) 3,359,995 534,995 4,074,354 I I 21,798 204,466 (125,150) (136,337) (2,283,425) $ 947,200 (2,499,030) I 29,575 983,406 599,231 9,724,601 11,797,601 1,394,046 996,307 (71,634) (570,277) I $ 53,373 $ 204,466 $ 858,256 $ 462,894 $ 8.763,588 $ 9,724,601 I -65- CITY OF ANOOVER U Capital Project Funds C Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31,1990) C Fire C 1990 Station State Tax Equipment Construction Aid Increment C Assets Cash and temporary investments $ $ 96,591 $ 57,472 $ 6,293 C Receivables Accounts C Accrued interest 11 5,358 450 Delinquent special assessments Deferred special assessments 16,260 C D.1e from other governmental units 9,324 274,575 Total assets $ 9,335 $ 96,591 $ 353,665 $ 6,743 C liabilities and Fund Balance liabilities m Cash deficits $ 9,324 $ $ $ Accounts payable 45,213 12,785 Contracts payable 20,812 ~ Accrued expenses 2,928 156 D.1e to other governmental units 50 Deferred revenue 9,324 290,835 m Total liabilities 18,648 45,213 327,360 206 . Fund balance (deficit) ~ Unreserved Designated for capital projects 300,475 26,317 Designated for equipment C Undesignated (9,313) 51,378 (274,170) (19,780) Total fund balance (deficit) (9,313) 51,378 26,305 6,537 Total liabilities C and fund balance $ 9,335 $ 96,591 $ 353,665 $ 6,743 C C C -66- e - f- ---- - ---=------r.,---,---- - - - -..--------- -- - J I - I = - - '" I = - I - Pennanent Special Improvement Totals I Park Assessment Revolving 1991 1990 - I ~ - $ 23,718 $ $ 861,311 $ 1,045,385 $ 2,423,818 I 2,918 2,918 405 18,613 14,413 39,250 67,105 752 12,310 13,062 7,314 I 432,039 272,519 720,818 572,736 376 2,812 287,087 1,793 I $ 24,123 $ 451,780 $ 1,166,283 $ 2,108,520 $ 3,072,766 I $ $ 648,801 $ $ 658,125 $ 23,244 I 46,093 104,091 82,760 40,188 61,000 51,861 27,429 30,513 11,300 50 123 I 432,791 287,748 1,020,698 580,050 1,195,302 287,748 1,874,477 749,338 I 24,123 1,087,652 706,698 2,145,265 3,350,521 I 171,837 171,837 172,985 (1,831,174) (2,083,059) (1,200,078) 24,123 (743,522) 878,535 234,043 2,323,428 I $ 24,123 $ 451,780 $ 1.166,283 $ 2,108,520 $ 3,072,766 I I I I -67- CITY OF ANDOVER Capital Project Funds Combining SKatement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Revenue Special assessments Intergovernmental revenue State aid Other revenue Interest earned on inve,stments Park dedication fees Miscellaneous Total rev,enue Expenditures Capital projects Capital outlay Interest Total expenditures Excess (deficiency) of revenUf~ over expenditures Other financing sources (uses) Bond proceeds Operating transfers in Capital Project Funds Operating transfers (out) General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Administrative Trust Fund Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over expenditures and. other financing uses Fund balance (deficit) Beginning of year Residual equity transfers in Residual equity transfers (out) End of year 1-- - --- --- 1990 Equipment Fire Station Construction State Aid $ $ $ 17,592 232,719 2,531 33,120 137 2,668 192 192 283,431 229,386 2,345,602 9,217 2,354,819 474,123 13,987 488,110 229,386 (226,718) (2,354,627) (204,679) 252,000 2,460,000 158,316 (5,127) (158,316) (2,700) 252,000 2,460,000 (7,827) 25,282 105,373 (212,506) (34,595) (53,995) 238,811 17,697 (17,697) $ (9,313) $ 51,378 $ 26,305 -68- -- - - -,------,-::--,----- Tax Increment c o c c c c c $ 1,862 1,862 1m .. 16,664 16,664 ~ (14,802) ~ ( 14,802) ~ c c c c ~ c c c 21,339 $ 6,537 - - ) I - - I ~ - I ~ ~ - - I Permanent - Special Improvement Totals Park Assessment Revolving 1991 1990 = I - $ $ 501,135 $ 85,857 $ 604,584 $ 478,836 - I 232,719 190,342 . 1,423 142,554 59,462 240,952 351,641 - I 14,250 14,250 16,735 - 329 15,673 643,689 145,319 1,092,834 1,037,554 - I - 10,599 1,320,495 15,116 4,411,985 2,036,604 I 91,961 115,165 74,799 10,599 1,412,456 15,116 4,527,150 2,111,403 I 5,074 (768,767) 130,203 (3,434,316) (1,073,849) I 2,712,000 I 75,918 234,234 (6,000) (3,075) (8,202) I (91,913) (91,913) (75,084) (158,316) (1,801) (17,760) (20,460) (19,046) I (36,830) 2,667,343 (101,931) I I 5,074 (805,597) 130,203 (766,973) (1,175,780) I 19,049 1,456,121 676,698 2,323,428 3,815,980 71,634 89,331 603,720 I (1,394,046) (1,411,743) (920,492) $ 24,123 $ (743,522) $ 878,535 $ 234,043 $ 2,323,428 I -69- CITY OF ANOOVER State-Aid Capital Project Fund Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) State-Aid Revolving Account Assets Cash and temporary investments (deficit) Receivables Accrued interest Deferred special assessments Due from other governmental units $ (238,172) 16,260 274,575 Total assets $ (221,912) Uabilities and Fund Balance Uabilities Accounts payable Contracts payable Accrued expenses Deferred revenue Total liabilities $ 12,258 $ 20,812 2,928 290,835 326,833 Fund balance (deficit) Unreserved Designated for capital projects Undesignated Total fund balance (deficit) State-Aid Project Account $ 295,644 5,358 $ 301,002 527 527 300,475 (274,170) (274,170) 300,475 Total liabilities and fund balance $ 52,663 $ 301,002 -70- c c c State- Aid 1988 Construction Account c c c c m ~ $ $ $ ~ ~ ~ ~ ~ ~ C C C C $ c c '- - ---~--- - - - - =-------,::::::::;1--- - "" . I ~ :t ~ - - I 'Ii ~ - - - - I ! ~ - ~ I State- Aid - 1989 I Construction Totals - Account 1991 1990 ~ I - - $ $ 57,472 $ 240,474 - I 5,358 5,086 16,260 I 274,575 280 $ $ 79,090 $ 245,840 I I $ $ 12,785 $ 4,443 20,812 2,928 2,586 I 290,835 327,360 7,029 I 300,475 389,541 I (274,170) (150,730) 26,305 238,811 I $ $ 353,665 $ 245,840 I I I I I -71- CTIY OF ANDOVER State-Aid Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1991 (with Comparative Totals for Year Ended December 31,1990) Revenue Special assessments Intergovernmental revenue State aid Other revenue Interest earned on inv,estments Total revenue State- Aid State-Aid State-Aid 1988 Revolving Project Construction Account Account Account $ 17,592 $ $ 164,661 68,058 23,250 9,870 182,253 23,250 77,928 Expenditures Capital projects Capital outlay Interest Total expenditur,es 31,605 145 442,373 6,223 448,596 145 31,605 Excess (deficiency) of revenue over expenditures (266,343) (8,355) 77,783 Other financing sources (uses) Operating transfers in Capital Project Funds Operating transfers (out) Capital Project Funds Debt Service Funds Administrative Trust Fund Special Revenue Funds Total other financing sources (uses) (158,316) (2,700) (5,127) (7,827) (158,316) Excess (deficiency) of revenue and other financing sources over expen- ditures and other financing uses (274,170) (8,355) (80,533) 291,489 98,052 17,519 (178) (17,519) $(274,170) $ 300,475 $ Fund balance (deficit) Beginning of year Residual equity transfers in Residual equity transfers (out) End of year -72- =-=_0----:0;= -------;::::-:--: ~ --I- 1----:1- t c c c c c c c m ~ ~ ~ ~ ~ ii.I c c c c ~ .. ~ ~ 1 I I J I - ~ I j - I i State- Aid - 1989 ~ I Construction Totals Account 1991 1990 - I - $ $ 17,592 $ - I 232,719 190,342 - ~ 33,120 34,535 ~I 283,431 224,877 -I 474,123 62,616 7,764 13,987 20,556 7,764 488,110 83,172 I (7,764) (204,679) 141,705 I I 158,316 158,316 (158,316) I (1,706) (2,700) (5,127) I 158,316 (7,827) (1,706) I 150,552 (212,506) 139,999 I (150,730) 238,811 98,812 178 17,697 32,863 I (17,697) (32,863) $ $ 26,305 $ 238,811 I I -73- CITY OF ANDOVER C Tax Increment Capital Project Fund C Balance Sheet As of December 31, 1991 C (with Comparative Totals as of December 31,1990) TIF TIF C Project Project 1-1 1-2 Totals C Account Account 1991 1990 Assets C Cash and temporary investments (deficit) $ (19,574) $ 25,867 $ 6,293 $ 20,969 Receivables C Accrued interest 450 450 675 Total assets $ (19,574) $ 26,317 $ 6,743 $ 21,644 C Uabilities and Fund Balance (Deficit) C i! Uabilities Accounts payable $ $ $ $ 198 Accrued expenses 156 156 ~ ' , Due to other governmental units 50 50 107 Total liabilities 206 206 305 Fund balance (deficit) ~ Unreserved Designated for C<lpital projects 26,317 26,317 24,775 ~ Undesignated (19,780) (19,780) (3,436) ~ Total fund balance (deficit) (19,780) 26,317 6,537 21,339 Total liabilities and C fund balance (deficit) $ (19,574) $ 26,317 $ 6,743 $ 21,644 C C C C C -74- C ---- -~--~t---- -~--- j I ~ I I - I - I -I -I -I I I I I I I I I I I I CI1Y OF ANDOVER Tax Increment Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1991 (with ComfE'ltive Totals for Year Ended December 31, 1990) TIF TIF Project Project 1-1 1-2 Totals Account Account 1991 1990 Revenue Other revenue Interest earned on investments $ $ 1,862 $ 1,862 $ 3,593 Expenditures Capital projects Capital outlay 16,344 320 16,664 25,902 Excess (deficiency) of revenue over expenditures (16,344) 1,542 (14,802) (22,309) Other financing uses Operating transfers (out) General Fund (6,000) Excess (deficiency) of revenue over expenditures and other financing uses (16,344) 1,542 (14,802) (28,309) Fund balance (deficit) Beginning of year (3,436) 24,775 21,339 49,648 End of year $ (19,780) $ 26,317 $ 6,537 $ 21,339 -75- CITY OF ANDOVER Special Assessment Capital Project Fund Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Improvement Bonds Series 1986B Construction Account Assets Cash and temporary investments Receivables Accrued interest Delinquent special aSSlellsments Deferred special assessments Due from other govelTlmental units $ Total assets $ liabilities and Fund Balance (Deficit) liabilities Cash deficits (cash and temporary investments) Accounts payable Contracts payable Accrued expenses Due to other governml~ntal units Deferred revenue Total liabilities $ Fund balance (deficit) Umeserved Designated for capital projects Undesignated Total fund balance (deficit) Total liabilities and fund balance (deficit) $ -76- - '- Improvement Bonds Series 1988A Construction Account c c c c c c m ~ c ~ c c c c $ $ $ .. ill $ c c c c H- -~ - ! I II - ! I ~ ! I Improvement - Bonds ~ I Series 1989A Unfinanced Construction Improvement Totals Account Account 1991 1990 ~ I - I $ $ $ $ 1,477,566 18,613 18,613 51,919 ~I 752 752 432,039 432,039 250,911 376 376 -I $ 18,613 $ 433,167 $ 451,780 $ 1,780,396 I I $ (1,070,187) $ 1,718,988 $ 648,801 $ 1,148 44,945 46,093 12,828 40,188 40,188 51,861 I 27,429 27,429 8,659 16 432,791 432,791 250,911 I (1,069,039) 2,264,341 1,195,302 324,275 I 1,087,652 1,087,652 2,413,443 (1,831,174) (1,831,174) (957,322) 1,087,652 (1,831,174) (743,522) 1,456,121 I $ 18,613 $ 433,167 $ 451,780 $ 1,780,396 I I I I -77- --- CITY OF ANDOVER C Special Assessment Capital Project Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1991 (with C:Omparative Totals for Year Ended December 31, 1990) C Improvement Improvement C Bonds Bonds Series 1986B Series 1988A C Construction Construction Account Account Revenue C Special assessments $ $ Other revenue Interest earned on investments 14,908 50,111 C Total revenue 14,908 50,111 Expenditures W Capital projects Capital outlay 138 21 Interest ~ Total expenditures 138 21 Excess (defidency) of C revenue over expenditures 14,770 50,090 Other financing sources (uses) Operating transfers in ~ Capital Project Flmds IU Operating transfers (OlJt) Special Revenue Funds C Debt Service Funds Capital Project Funds Administrative Trust Fund C Total other linancing sources (uses) Excess (deficiency) of C revenue and other financing sources over C expenditures and other financing uses 14,770 50,090 Fund balance (deficit) C Beginning of year 184,325 1,144,861 Residual equity transfers (out) (199,095) (1,194,951) C End of year $ $ C -78- C ----~-- -- --- -~~ ----- -- - -- ~---- - - ,. , II i I ~ I i I - I - I -I I I I I I I I I I I I I Improvement Bonds Series 1989A Construction Account $ 77,535 77,535 74,140 74,140 3,395 3,395 1,084,257 $ 1,087,652 Unfinanced Improvement Account $ 501,135 501,135 1,246,196 91,961 1,338,157 (837,022) 75,918 (3,075) (91,913) (17,760) (36,830) (873,852) (957,322) $ (1,831,174) Totals 1991 1990 $ 501,135 $ 382,061 142,554 643,689 1,320,495 91,961 1,412,456 (768,767) 75,918 (3,075) (91,913) (17,760) (36,830) (805,597) 1,456,121 (1,394,046) $ 301,070 683,131 1,793,258 53,840 1,847,098 (1,163,967) (1,801) (73,378) (19,046) (94,225) (1,258,192) 3,591,037 (876,724) (743,522) $ 1,456,121 -79- -~-- CITY OF ANDOVER 0 Proprietary Fund Type C Combining Balance Sheet As of December 31, 1991 and 1990 C Totals C Water Sewer 1991 1990 Assets C Current assets Cash and temporary investments $ 329,565 $ 83,478 $ 413,043 $ 285,069 C Receivables Accounts 54,341 108,857 163,198 137,709 Accrued interest 5,511 1,418 6,929 2,889 m Delinquent special assessments 2,585 2,585 2,265 Deferred special assessments 17,163 17,163 20,223 Due from other governmental units 9,316 9,316 630 m Inventory 7,327 7,327 5,385 Total current assets 396,744 222,817 619,561 454,170 Property and equipment ~ ! :' Furniture and equipment 69,386 20,080 89,466 75,511 Machinery 561,365 561,365 524,515 Collection and distribution systems 6,588,334 9,841,557 16,429,891 14,770,914 ~ 7,219,085 9,861,637 17,080,722 15,370,940 -- Less accumulated depreciation (768,202) (1,611,768) (2,379,970) (2,031,357) Net property and equipment 6,450,883 8,249,869 14,700,752 13,339,583 ~ Total assets $ 6,847,627 $ 8,472,686 $ 15,320,313 $ 13,793,753 liabilities and Fund Equity C Current liabilities C Accounts payable $ 6,894 $ 106 $ 7,000 $ 16,949 Accrued expenses 8,583 5,687 14,270 9,286 Due to other governmental units 357 357 16,418 C Total current liabilities 15,834 5,793 21,627 42,653 Fund equity fit Contributed capital 6,398,965 8,238,413 14,637,378 13,280,706 I.. Retained earnings Designated for equipment 16,820 16,820 33,640 C Undesignated 416,008 211,660 627,668 470,394 Total fund equity 6,831,793 8,466,893 15,298,686 13,751,100 Total liabilities C and fund equity $ 6,847,627 $ 8,472,686 $ 15,320,313 $ 13,793,753 C -80- C - -= ---'- --::: :c_ I-- - -- - -- ------- ---- --- ......--1 --- - ------ - I I CITY OF ANDOVER - I Proprietary Fund Type Combining Statement of Revenue, Expenses, and Changes in Retained Eunings I Years Ended December 31, 1991 and 1990 - - Totals I Water Sewer 1991 1990 - Operating revenue ~ User charges $ 205,848 $ 351,173 $ 557,021 $ 508,933 I Meters 29,473 29,473 26,185 - - Permit fees 11,400 11,400 10,750 Penalties 5,239 9,083 14,322 12,445 I Other 1,273 5,093 6,366 1,737 - Total operating revenue 253,233 365,349 618,582 560,050 - I Operating expenses Personal services 79,700 39,303 119,003 95,838 Supplies 20,999 8,164 29,163 25,080 I Meters, etc. 21,930 21,930 21,662 Other services and charges 26,766 17,744 44,510 28,112 Disposal charges 223,752 223,752 212,665 I Total operating expenses 149,395 288,963 438,358 383,357 Operating income before depreciation 103,838 76,386 180,224 176,693 I Depreciation 153,175 195,439 348,614 324,588 I Operating loss (49,337) (119,053) (168,390) (147,895) Other income (expense) Interest income 22,109 5,170 27,279 18,054 I Interest expense (748) Total other income (expense) 22,109 5,170 27,279 17,306 I Net loss (27,228) (113,883) (141,111) (130,589) Other financing sources (uses) I Operating transfers in Debt Service Funds 30,500 30,500 30,500 Operating transfers (out) I Debt Service Funds (37,630) (37,630) Total other financing sources (uses) (7,130) (7,130) 30,500 I Add credit for depreciation on contributed assets 145,562 193,593 339,155 317,905 I Income closed to retained earnings 118,334 72,580 190,914 217,816 Retained earnings I Beginning of year 314,494 155,900 470,394 252,578 End of year $ 432,828 $ 228,480 $ 661,308 $ 470,394 I -81- CITY OF ANDOVER 0 Proprietary Fund Type C Combining Statement of Cash Flows Years Ended December 31,1991 and 1990 C Totals C Water Sewer 1991 1990 Cash flows from operating activities C Operating loss $ (49,337) $ (119,053) $ (168,390) $ (147,895) Adjustments to reconcile operating loss to net cash provided by operating activities Depreciation 153,175 195,439 348,614 324,588 C i Cbange in assets and liabilities Receivables Accounts (13,248) (12,242) (25,490) (17,010) C Delinquent sp'~cial assessments (320) (320) (2,265) Deferred s~cial assessments 3,059 3,059 (20,223) Due from oth.:r governmental units (8,686) (8,686) (630) m Inventory (1,942) (1,942) 75 Accounts payable 3,644 (13,592) (9,948) 11,831 Accrued expenses 2,961 2,023 4,984 (321 ) Due to other governmental units 80 (16,141) (16,061) (20,668) C Net cash provided by operating activities 95,333 30,487 125,820 127,482 Cash flows from capital and related financing activities C Acquisition of capital assets (12,260) (1,695) (13,955) (53,402) Cash flows from investing activities ~ JI: Interest received 19,487 3,752 23,239 17,318 . Cash flows from noncapital financing activities ~ Operating transfer from Debt Service Funds 30,500 30,500 30,500 Il.J Operating transfer to Debt Service Funds (37,630) (37,630) Net cash provided (used) by ~ noncapital financing activities (7,130) (7,130) 30,500 Net incmase in cash and temporary investments 102,560 25,414 127,974 121,898 C Cash and temporary investments Beginning of year 227,005 58,064 285,069 163,171 C End of year $ 329,565 $ 83,478 $ $ 413,043 285,069 Supplemental schedule of noncash investing, capital, C and financing activities Assets contributed by other funds $ 1,371,993 $ 323,834 $ 1,695,827 $ 353,704 C t -82- C - -:c-;=-----c:::----=-r=- ---- --- --- ---- - ------=--~~- -~---- ~~- --- "" -I - I - I I -I I I I -I I I I I I I I I I I CITY OF ANDOVER Water Fund Comparative Balance Sheet As of December 31,1991 and 1990 Assets Current assets Cash and temporary investments Receivables Accounts Accrued interest Inventory Total current assets Property and equipment Furniture and equipment Machinery Distribution system Less accumulated depreciation Net property and equipment Total assets liabilities and Fund Equity Current liabilities Accounts payable Accrued expenses Due to other governmental units Total current liabilities Fund equity Contributed capital Retained earnings Designated for equipment Undesignated Total fund equity Total liabilities and fund equity -83- 1991 1990 $ 329,565 $ 227,005 54,341 41,093 5,511 2,889 7,327 5,385 396,744 276,372 69,386 57,126 561,365 524,515 6,588,334 5,253,191 7,219,085 5,834,832 (768,202) (615,027) 6,450,883 5,219,805 $ 6,847,627 $ 5,496,177 $ 6,894 $ 3,250 8,583 5,622 357 277 15,834 9,149 6,398,965 5,172,534 16,820 416,008 314,494 6,831,793 5,487,028 $ 6,847,627 $ 5,496,177 CITY OF ANDOVER o c c c w w C tD ~ tD ~ Water Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended December 31, 1991 and 1990 1991 1990 Amount Percent Amount Percent Operating revenue User charges $ 205,848 81.3 % $ 182,691 80.7% Meters 29,473 11.6 26,185 11.6 Permit fees 11,400 4.5 10,750 4.7 Penalties 5,239 2.1 5,081 2.2 Other 1,273 0.5 1,737 0.8 Total operating revenue 253,233 100.0 226,444 100.0 Operating expenses Personal services 79,700 31.5 64,948 28.7 Supplies 20,999 8.3 20,237 8.9 Meters, etc. 21,930 8.7 21,662 9.6 Other services and charges 26,766 10.5 20,415 9.0 Total operating expenses 149,395 59.0 127,262 56.2 Operating income before depreciation 103,838 41.0 99,182 43.8 Depreciation 153,175 60.5 134,582 59.4 Operating loss (49,337) (19.5) (35,400) (15.6) Other income Interest income 22,109 8.7 18,054 7.9 Net loss (27,228) (10.8)% (17,346) (7.7)% Add credit for depreciation on contributed assets 145,562 129,492 Income closed to retained earnings 118,334 112,146 Retained earnings Beginning of year 314,494 202,348 End of year $ 432,828 $ 314,494 ~ ~ ~ -84- ~ C C C C [ =:.~-- ---=-::;;-.=~ ~ -.1-_ I- J:! i I CITY OF ANDOVER ~ I i I i I ~ I = I ~ I - I - I -I -I -I I I I I I I I Water Fund Statement of Cash Flows Years Ended December 31,1991 and 1990 1991 1990 Cash flows from operating activities Operating loss $ (49,337) $ (35,400) Adjustments to reconcile operating loss to net cash provided by operating activities Depreciation 153,175 134,582 Change in assets and liabilities Receivables Accounts (13,248) 7,208 Inventory (1,942) 75 Accounts payable 3,644 (354) Accrued expenses 2,961 (559) Due to other governmental units 80 (607) Net cash provided by operating activities 95,333 104,945 Cash flows from capital and related financing activities Acquisition of capital assets (12,260) (42,209) Cash tlows from investing activities Interest received 19,487 17,616 Net increase in cash and temporary investments 102,560 80,352 Cash and temporary investments Beginning of year 227,005 146,653 End of year $ 329,565 $ 227,005 Supplemental schedule of noncash investing, capital, and financing activities Assets contributed by other funds $ 1,371,993 $ 159,517 -85- CITY OF ANDOVER C Sewer Fund C Comparative Balance Sheet As of December 31,1991 and 1990 C 1991 1990 C Assets Current assets C Cash and temporary investments $ 83,478 $ 58,064 Receivables a Accounts 108,857 96,616 Accrued interest 1,418 Delinquent special assessments 2,585 2,265 C Deferred special assessments 17,163 20,223 Due from other governmental units 9,316 630 Total current assets 222,817 177,798 a Property and equipment Furniture and equipment 20,080 18,385 Collection system 9,841,557 9,517,723 C 9,861,637 9,536,108 Less accumulated depreciation (1,611,768) (1,416,330) Net property and equipment 8,249,869 8,119,778 C Total assets $ 8,472,686 $ 8,297 ,576 liabilities and Fund Equity C Current liabilities C Accounts payable $ 106 $ 13,699 Accrued expenses 5,687 3,664 Due to other governmental units 16,141 -- W Total current liabilities 5,793 33,504 " ! ! Fund equity ~ Contributed capital 8,238,413 8,108,172 Retained earnings Designated for equipment 16,820 ~ Undesignated 211,660 155,900 Total fund equity 8,466,893 8,264,072 Total liabilities and fund equity $ 8,472,686 $ 8,297 ,576 ~ C C -86- C ~~,----=-==~, -- -- -.-------.- ----~ -- - - - ~ "~I -----~ "" = - I CfIY OF ANOOVER - I Sewer Fund - Statement of Revenue, Expenses, and Changes in Retained Earnings = I Years Ended December 31,1991 and 1990 - - I 1991 1990 - Amount Percent Amount Percent I Operating revenue User charges $ 351,173 96.1 % $ 326,242 97.8% Penalties 9,083 2.5 7,364 2.2 I Other 5,093 1.4 Total operating revenue 365,349 100.0 333,606 100.0 I Operating expenses Personal services 39,303 10.8 30,890 9.3 Supplies 8,164 2.2 4,843 1.5 -I Other services and charges 17,744 4.8 7,697 2.3 Disposal charges 223,752 61.2 212,665 63.7 Total operating expenses 288,963 79.0 256,095 76.8 I Operating income before depreciation 76,386 21.0 77,511 23.2 I Depreciation 195,439 53.5 190,006 56.9 I Operating loss (119,053) (32.5) (112,495) (33.7) Other income (expense) Interest income 5,170 1.4 I Interest expense (748) ~ Total other income (expense) 5,170 1.4 (748) ~ I Net loss (113,883) (31.1)% (113,243) (33.9)% Other financing sources (uses) I Operating transfers in Debt Service Funds 30,500 30,500 Operating transfers (out) I Debt Service Funds (37,630) Total other financing sources (uses) (7,130) 30,500 I Add credit for depreciation on contributed assets 193,593 188,413 Income closed to retained earnings 72,580 105,670 I Retained earnings Beginning of year 155,900 50,230 I End of year $ 228,480 $ 155,900 I -87- CITY OF ANDOVER C Sewer Fund C Statementofcash~ows Years Ended December 31, 1991 and 1990 C 1991 1990 C Cash flows from operating activities C Operating loss $ (119,053) $ (112,495) Adjustments to reconciile operating loss to net cash provided by operating activities Depreciation 195,439 190,006 C Change in assets and liabilities Receivables Accounts (12,242) (24,218) m Delinquent special assessments (320) (2,265) Deferred special assessments 3,059 (20,223) Due from other governmental units (8,686) (630) ~ Accounts payable (13,592) 12,185 Accrued expenses 2,023 238 Due to other governmental units (16,141 ) (20,061) ~ Net cash provided by operating activities 30,487 22,537 cash flows from capital and related financing activities ~ Acquisition of capital assets (1,695) (11,193) cash flows from investing activities ~ Interest expense (298) Interest received 3,752 Net cash provided (used) by investing activities 3,752 (298) C Cash flows from noncapitall financing activities Operating transfer from Debt Service Funds 30,500 30,500 Operating transfer to Debt Service Funds (37,630) C Net cash provided (used) by noncapital financing activities (7,130) 30,500 Net increase in cash and temporary investments 25,414 41,546 C Cash and temporary investments C Beginning of year 58,064 16,518 End of year $ 83,478 $ 58,064 C Supplemental schedule of noncash investing, capital, and financing activities C Assets contributed by other funds $ 323,834 $ 194,187 C -88- e ----- ~ , ----- -~ ------- -- ~ ,,",- I - - ----.-- ---- ~ II i I i I i I i I . I ~ I - I ~ I - I - I ~I I -I I I I I I CITY OF ANDOVER Fiduciary Funds Combining Balance Sheet As of December 31,1991 (with Comparative Totals as of December 31,1990) Expendable Agency Trust Fund Fund Totals Administrative Escrow Trust Fund Fund 1991 1990 Assets Cash and temporary investments $ 220,759 $ 374,196 $ 594,955 $ 787,225 Receivables Accrued interest 5,305 5,305 6,615 Total assets $ 226,064 $ 374,196 $ 600,260 $ 793,840 liabilities and Fund Balance liabilities Accounts payable $ $ 2,836 $ 2,836 $ 13 Deposits payable 371,360 371,360 504,247 Total liabilities 374,196 374,196 504,260 Fund balance Unreserved Undesignated 226,064 226,064 289,580 Total liabilities and fund balance $ 226,064 $ 374,196 $ 600,260 $ 793,840 -89- CITY OF ANDOVER Expendable Trust Fund Administrative Trust Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Years Ended December 31, 1991 and 1990 1991 Revenue Other revenue Interest earned on investments $ 20,824 Other financing sources (uses) Operating transfers in Capital Project Hmds Operating transfers (out) General Fund Total other financing sources (uses) 20,460 (104,800) (84,340) Excess (deficiency) of revenue and other financing sources over expen- ditures and other financing uses (63,516) Fund balance Beginning of year 289,580 $ 226,064 End of year -90- ~ ~, 1990 $ 38,475 19,046 (182,318) (163,272) (124,797) 414,377 $ 289,580 c c c c c c c c c m m c c c ~ ~ C C C -'" ii . '" I i I - I ~ I - I - I -I = I -I I I I I I I I I I I Assets Cash and temporary investments liabilities Accounts payable Deposits payable Total liabilities CITY OF ANDOVER Agency Fund Escrow Fund Statement of Changes in Assets and liabilities Year Ended December 31, 1991 Balance January 1 Additions $ 504,260 $ 124,322 $ 13 504,247 $ 504,260 -91- $ 2,836 121,486 $ 124,322 Deductions $ 254,386 $ 13 254,373 $ 254,386 Balance December 31 $ 374,196 $ 2,836 371,360 $ 374,196 I C C C C C C c m m ~ c ~ ~ c c c c c c _._ ~-=-c---== . - c- --..---,----- .. h II 11 I I ~ I ~ I ~ I ~ I ;1 I I I I I I I I I I STATISTICAL SECTION (uNAUDITED) ! C C C C C C c m m ~ ~ ~ c c c c c c c __---'-----"~__=__- ~~ '--- -f - -- -- -- -:.--~;;:---r--~ 1! - , I ! CITY OF ANDOVER - I General Fund Revenue by Source I ~ I General Licenses ~ Charges for Fines and Other - Fiscal Property and Intergovernmental - Year Tax Permits Revenue Services Forfeits Revenue Total - - I 1988 $ 713,219 $ 236,555 $ 559,246 $ 31,404 $ 45,049 $ 84,680 $ 1,670,153 - I 1989 712,017 259,083 659,330 58,754 51,614 73,909 1,814,707 - - - 1990 911,255 212,793 616,722 75,962 46,650 70,060 1,933,442 - I 1991 1,017,774 230,298 640,318 82,604 31,750 71,290 2,074,034 - I - I - I = I I I I I I I I I I -92- -- -93- c c c c c c c m w ~ ~ c c c ~ c c c c CITY OF ANDOVER General Fund Expenditures by Function Fiscal General Public Public Parks and Year Government Safety Works Sanitation Recreation 1988 $ 521,775 $ 496,710 $ 333,978 $ 12,030 $ 240,574 1989 645,52Jl 705,415 296,275 18,658 218,571 1990 593,778 754,914 307,046 29,168 261,449 1991 579,797 805,393 374,138 14,831 245,097 ~I--- I -~.~~ ~ Ii I J ! '" ~ I j ) I - I Recycling j $ - I 20,112 . = 39,567 - I 46,771 - I - I - - - I - - I - I I I I I I I I I Economic Development Unallocated Total $ $ 136,209 $ 1,741,276 97,797 2,002,349 14,289 129,589 2,129,800 17,447 72,521 2,155,995 -94- CITY OF ANDOVER C Tax Levies and Collections r'\ ~ Percentage C Collection Percentage Collection of Total of Current of Levy of Prior Total Collections C Year Total Levy Yeaif's Levy Collected Years' Levy Collections to Levy 1983 $ 570,009 $ 548,667 96.26 % $ 18,286 $ 566,953 99.46 % C 1984 645,466 621,184 96.24 16,627 637,811 98.81 1985 689,698 671,021 97.29 11,222 682,243 98.92 1986 802,877 784,514 97.71 18,558 803,072 100.02 C 1987 880,048 862,018 97.95 19,185 881,203 100.13 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 1990 993,164 967,055 97.37 22,178 989,233 99.60 C 1991 1,079,510 1,054,361 97.67 21,936 1,076,297 99.70 Special Assessment Levies and Collections m .. Percentage W Collection Percentage Collection of Total of Current of Levy of Prior Total Collections Year Total Levy Y,ear's Levy Collected Years' Levy Collections to Levy C 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 C 1985 725,828 660,741 91.03 70,394 731,135 100.73 1986 700,636 662,322 94.53 84,548 746,870 106.60 1987 989,102 903,856 91.38 28,728 932,584 94.29 ~ 1988 1,205,379 1,091,675 90.57 83,419 1,175,094 97.49 1989 1,178,982 Jl,097,880 93.12 57,987 1,155,867 98.04 1990 1,620,500 1,509,902 93.18 210,132 1,720,034 106.14 ~ 1991 1,450,030 1,249,889 86.20 38,964 1,288,853 88.88 ii.I C ~ ~ C C C -95- C ------ - - --~----- ------ ~ II i I j I 1 I - I I - I - I = I I I I I I I I I I I CITY OF ANDOVER Computation of Legal Debt Margin December 31, 1991 Market value of taxable property $ 467,376,200 Debt limit (2.00% of market value) $ 9,347,524 Amount of debt applicable to debt limit Total bonded debt $ 22,340,000 Less Bonded debt not repayable solely from tax levies Special Assessment Improvement Bonds 18,315,000 Tax Increment Bonds 1,015,000 State-Aid Street Bonds 510,000 Net debt applicable to debt limit 2,500,000 Legal debt margin $ 6,847,524 -96- CITY OF ANDOVER ~ ~ Limit on Net Debt c c Computation of Legal Debt Margin (continued) December 31, 1991 M.S.A. Section 475.53 c Definitions c c c o c m m ~ "Subdivision 1. Generally. Except as otherwise provided in Section 475.51 no municipality, except a school district or a city of first class, shall incur or be subject to a net debt in excess of 2.00% of the taxable market value." M.S.A. Section 475.51 "Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt, and the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefitted 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. c (6) Not applicable. c (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. r- .. (8) All other obligations which under the provision of the law authorizing their issuance are not to be included in computing the net debt of the municipality. " t -97- c c c __ I ---~------r:;~ - ~ I ~ I - I = I - I I I I I I I I I I I I I I I CITY OF ANDOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-1 Year Ended December 31,1991 Accounted Original for in Current Amount Budget Prior Years Year Remaining Sources of funds Tax increments $ 8,064,943 $ 478,555 $ 343,284 $ 7,243,104 Special assessments 5,166 (5,166) State credits 57,266 (57,266) Bond proceeds 4,715,000 205,000 4,510,000 Land sales 106,501 55,627 (162,128) Interest 97,470 44,621 47,566 5,283 Total sources of funds 12,877,413 891,943 451,643 11,533,827 Uses of funds Capital outlay 5,200,000 253,116 16,344 4,930,540 Administrative costs and other 264,000 11,101 252,899 Debt service Principal 4,810,000 205,000 4,605,000 Interest and other costs 3,640,686 59,709 3,580,977 Total uses of funds 13,914,686 528,926 16,344 13,369,416 District balance (deficit) (1,037,273) 363,017 435,299 (1,835,589) Transfers to other funds (24,000) 24,000 Remaining funds (deficit) $ (1,037,273) $ 363,017 $ 411,299 $ (1,811,589) SUPPlEMENTAL INFORMATION Name of District Tax Increment District- Development District No. 1-1 Type of District and Authorizing Statutes Redevelopment District established in 1986 under Section 472 of Minnesota Statutes for a duration of 25 years from receipt of first increment. Financing Total bonds issued General Obligation Tax Increment Bonds Series 1987B $ $ 205,000 Outstanding Bonds at December 31,1991 -98- CITY OF ANDOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-2 Year Ended December 31, 1991 Accounted Original for in Budget Prior Years $ 2,200,361 $ 378,180 1,004,500 1,044,126 7,959 4,500 63,414 23,877 3,209,361 1,517,556 Sources of funds Tax increments State credits Bond proceeds Umd sales Interest Miscellaneous Total sources of funds Uses of funds Capital outlay Administrative costs and other Debt service Principal Interest and other costs Total uses of funds 1,010,375 95,905 1,025,000 1,029,018 3,160,298 49,063 District balance (deficit) Transfers to other funds Remaining funds (deficit) $ 49,063 816,904 29,822 15,000 334,137 1,195,863 321,693 (6,000) $ 315,693 SUPPLEMENTAL INFORMATION Current Amount Year Remaining $ 201,260 $ 1,620,921 277 (277) (39,626) (7,959) 22,910 (81,824) 25,867 (49,744) 250,314 1,441,491 320 193,151 66,083 35,000 975,000 98,450 596,431 133,770 1,830,665 116,544 (389,174) (6,000) 12,000 $ 110,544 $ (377,174) Name of District Tax Increment District- Development District No. 1-2 Type of District and Authoriziing Statutes Redevelopment District established in 1986 under Section 472 of Minnesota Statutes for a duration of 25 years from receipt of first increment. Financing Total bonds issued General Obligation Tax Increment Bonds Series 1987A Outstanding Bonds at December 31, 1991 -99- --=-C~- --;::c- -r- $ 1,065,000 $ 1,015,000 n _ ~ ----'::"'-- ~ c c c c c c c ~ ~ ~ ~ ~ C C C C C C ~ iii ! I ~ I i I ~ I i I ~ I ;; I ~ I = I I I I I I I I I I I SINGLE AUDIT AND OTHER REOUlRED REPORTS cl C C C C C C c m w c m ~ ~ 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 I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 27, 1992. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditine: Standards, issued by the Comptroller General of the United States. 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 general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Andover. The information in this schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. ~4:~~~:~4 March 27, 1992 C::::~~:E."2O:> ~C::::C::::<>LJI"""---'--.A.""'---'--= -100- 410 PARK NATIONAL BANK BUILDING 5353 WA'fZATA BOULEVARD MINNEAPOLIS, MINNESOT;o\ 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545..Q569 I C I C, I C C C C C c m m m ~ ~ ~ ~ c c c c ------ , I ! J I .. -II I J ji I ~ ~ I - ~ I - I I = I I -I I I I I I I I I 01Y OF ANDOVER Schedule of Federal Financial Assistance Year Ended December 31, 1991 Federal GDA Federal Grantor/Pass-Through Grantor/Program TItle Number U.S. Department of Housinst and Urbm Development Federal Grant Amount Passed Through Anoka County Community Development Block Grant OIrrent Year Activity Revenue State and Federal Local Expenditures 14.218 $ 149,093 $ 35,082 $ $ 35,082 Note 1: Federal grant amount includes any carryover fnxn previous grant year entitlements as well as any program revenue earned that increases the funds available. Note 2: Community Development Block Grant revenues and expenditures on the City's financial statements reflect the effects of adjustments to prior years' accruals. -101- I C c, c c c c c c m m to tC ~ C C C C C C ~=c-- -=--:,~ -- ---~ ------------ --- -~----- ~.=----1- -- -.- c!! ~ == li I . 1! - - - - I = - I '! j ; I I - I - I = = -I - I -I -I I I I I I I I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S SINGLE AUDIT COMBINED REPORT ON INTERNAL CONTROL STRUCTURE City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1991, and have issued our report thereon dated March 27, 1992. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended December 31, 1991, we considered the City of Andover's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Andover is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. (continued) oC~~E:~C> .A.OC<:::C>lJr"I............s. -102- 410 PARK NATIONAL BANK BUILDING 5353 WA'fZATA BOULEVAAD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 I 0' c c c c c C i C m m c m c ~ c c ~ c c ,-~" _.~- t- ~- ~ ,. j I ~ ~ I = I ~ ~ I ~ I - I I I -I -I I I I I I I I I I For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash receipts/revenue, cash disbursements/expenditures, payroll, external financial reporting, and grant administration. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1991, the City of Andover had no major federal financial assistance programs and expended 100% ofits total federal financial assistance under the following nonmajor federal financial assistance program: Community Development Block Grant. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances or reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgement, could adversely affect the City of Andover's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements or to administer federal financial assistance programs in accordance with applicable laws and regulations. Because of the limited size of your office staff, your organization has limited segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this condition. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited or that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the City of Andover's general purpose financial statements and of its compliance with requirements applicable to its federal financial assistance programs for the year ended December 31, 1991, and this report does not affect our reports thereon dated March 27, 1992. (continued) -103- I C C C C C C c m m c c ~ c c c c c c c --::'--;--1 - -p::-r J I i I :II I J -I ~ - I ~ : I - I -I -I I I I I I I I I I I In our letter to the City Council, issued in connection with our audit of the City's general purpose financial statements, we have separately communicated our observations and recommendations regarding other matters. This report is intended solely for the use of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of public record. ~*~~:~M March 27, 1992 -104- I C c, c c c c c C to to ~. WJ ~ C C C C C C C - _______~ ~~~ I ---,c=,-- ---- - -- --- ---------- ---.- ---- _ _ s_ :1 !i - = I i I -I - I - I - I = I I I I I I :1 11 JI II II II PRINCIPALS KENNETH w. MALLOY, CPA THOMAS A. KARNOWSKI. CPA PAUL A. RADOSEVICH. CPA INDEPENDENT AUDITOR'S COMPLIANCE REPORT BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 27, 1992. We conducted our audit in accordance with generally accepted auditing standards and Government Auditimr Standards, issued by the Comptroller General of the United States. 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. Compliance with laws, regulations, contracts, and grants applicable to the City of Andover is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City of Andover complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. This report is intended solely for the use of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of public record. #!* ~~ :4--dr2 March 27, 1992 C:'-_FTTIF"OO:::=:I:> F"LJlE3"--'C: A.C;c:<=>LII......-r"""'......-r= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TB..EPHONE: 612--545-0424 TELEFAX: 612-545-0569 -105- cl C I C C c c c, c m c m ~ c c c c ~ ii c c =--i.....=-=- - .~ - t ~ ~ j I ~ I ~ I !!! ! I I - I - I = - I -I I I I ,I il II II II II II PRINCIPALS KENNETH W. MALLOY. CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSeviCH, CPA INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS City Council and Residents City of Andover Andover, Minnesota We have applied procedures to test the City of Andover, Minnesota's, compliance with the following requirements applicable to each of its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1991: political activity, civil rights, cash management, federal financial reports, allowable costs, and Drug-Free Workplace Act. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's, Comoliance Suoolement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Andover's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material insiances of noncompliance with the requirements listed in the first paragraph of this report, except as listed in the Schedule of Findings. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Andover had not complied, in all material respects, with those requirements. This report is intended solely for the use of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of public record. d4:~~:~a March 27, 1992 C=:E:FTrIFIE:1:)O P'LlE3L-'C=: .....c:::c=:<:>LI,....,-.....,....,-S -106- 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 01 C I C ' C C C C C I m m ~ c C D C C ~ ill c c -. -~ ----~--'~ - ... f - ~ -I = I ~ I - I = I = I I -I I I I I :1 II il II II II II PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNO\NSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REOUIREMENTS APPLICABLE TO NONMAJOR RELATED FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS City Council and Residents City of Andover Andover, Minnesota In connection with our audit of the general purpose financial statements of the City of Andover, Minnesota, and with our study and evaluation of the internal control systems used to administer federal financial assistance programs, as required by OMB Circular A-128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1991. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed, reporting, cost allocation, and claims for advances and reimbursements. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those requirements. This report is intended solely for the use of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of public record. :&dj;~;~:~~ March 27, 1992 /?/l , . -107- co~~.':':~C> -'coCO<>LJ~..A.~.= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOlIS, MINNESOTA 55416 TELEPHONE: 612--545-0424 TELEFAX: 612-545-0569 fill iJ ! c ~ ~ c c c ~ ~ m m ~ ~ ~ D C c c c c c II ~ II '" ~ - I ~ I '" ~ I - I - I - I =1 -I I I I 11 II II II II II II PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI. CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH MINNESOTA STATE LAWS AND REGULATIONS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 27, 1992. Our audit was made in accordance with generally accepted auditing standards and the provisions of the Lellal Compliance Audit Guide promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Legal Compliance Audit Guide covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City of Andover complied with the material terms and conditions of applicable legal provisions. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of public record. ~~//~/./ /,/~~/drg; ~/~/ / March 27, 1992 <:::e:FTrIF'IEI:> PIJE3L.._<::: ""<:::<:::~L.I"""--r"""""TS -108- 410 PARK NATIONAL BANK BUILDING 5353 WA'rZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 ~---=oI""""""'" ________.- ~ --t I C! I ! C C C C C ! c, m c m ~ .. D ~ ~ C C C C C ~ r - ~---~ ! I - I - I - I - I - I - I I I I I I CITY OF ANDOVER Schedule of Findings Year Ended December 31, 1991 Program Current Year Findings Community Development Block Grant As of December 31, 1991, the City has not published a policy notifying employees that the City will provide a drug-free workplace. Further, the City has not established an ongoing drug-free awareness program for its employees. II il II II II II II -109- Amount of Ouestioned Costs None o . u C C C C C C W ~ ~ c C M .. c c c c c ~----~ -- I~