Loading...
HomeMy WebLinkAbout1992 CAFR I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Financial Report Year Ended December 31, 1992 I mil! , , I I r-,1 ~ Ii ~ ~ o n -I ~ U o c' C' ~! [j r'I \.j ~I I: Or r, I.t c C o! ~-- - , ----~ncol I I I II I I I I I I I I I I I I I I I -- 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 Types Combined Statement of Cash Flows - Proprietary Fund Types 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 ~ *I m m c o W' o c C o! 0' ~ WI ~ Wi I C~ o , UI 0' o --.:;~~~ -- - - ~- =-=t1_.L__ II I 11 1- 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 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 Enterprise Funds 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 54 55 - 56 57 - 60 61 - 64 65 - 66 67 - 68 69 70 71 72 73 - 74 75 - 76 77 78 79 80 81 82 83 84 85 ~ .. ~ w m u OJ o C' c c 0, Oi o rl! ... " I' W r - ~ i ~ o! C r- 11 : -I ~~ =-" , - -- - -~----=u ...t~ - ---- I 11 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 STATEMENTS (CONTINUED) Trust and Agency 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 86 87 88 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 89 90 - 91 92 93 94 95 SINGLE AUDIT AND OTHER REQUIRED REPORTS Independent Auditor's Report on Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance Independent Auditor's Report on the Internal Control Structure Based on An Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Single Audit Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 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 Federal Financial Assistance Program Transactions Independent Auditor's Report on Compliance With Minnesota State Laws and Regulations Schedule of Findings 96 97 98 - 99 100 - 102 103 104 105 106 107 m ~ m c c o fII\ U c .. w o ~, ~' m Wi I 0: Ii C C I C i 0' ~ -I c , I .=;.;;;~-- --==~ 1-- -- ,-- -- ---=:::::---~I~-- I I I I I I I I ! I . i I I I i I I I I I I I I I ~ I I I t CITY OF ANDOVER Elected and Appointed Officials December 31, 1992 Term of Office Expires Last Business Day of December Elected Mayor Kenneth Orttel Council Marjorie Perry Donald Jacobson John McKelvey Todd Smith Appointed James E. Schrantz - Administrator Shirley Clinton - Treasurer Victoria Volk - Clerk Daryl E. Sulander - Finance Director -1- 1992 1994 1992 1994 1992 c m CI I II i i D' II I II I I i I I I I I I I I I J , ~--- ~ _ __ I -- -- ---~-----n-etl~ j I i i 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 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, 1992, 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 at December 31, 1992, and the results of its operations and cash flows of the Proprietary Fund Types for the year then ended, in conformity with generally accepted accounting principles. (continued) C:~~E:~I:> _~c::=c>,--"......"T_r...o""T'"SO 410 PARK NATIONAL 8,lI,NK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TB...EPHONE: 612-545-0424 TB...EFAX: 612-545-0569 -2- m m I c C 0, C D ~ ~ D! f ~I ml m m m, , , '.; ; J I I E =-- - '-1 - -=-a:=.;;;~, II II 11 ! I ;1 l - -I I I I ~I .1 I I I I I I I GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF ANOOVER Combined Balance Sheet All Fund Types and Account Groups As of December 31, 1992 (with Comparative Totals as of December 31,1991) Governmental Fund Types Special Debt Capital General Revenue Service Project Assets and Other Debits Assets Cash and temporary investments $ 872,183 $ 43,342 $ 7,836,876 $ 7,271,243 Receivables Accounts 26,495 15,961 Accrued interest 12,220 1,313 135,540 134,304 Delinquent taxes 46,385 12,869 7,645 Delinquent special assessments 2,330 179,118 84,177 Deferred special assessments 467 3,976,360 1,158,711 Due from other governmental units 63,984 21,660 39,713 Due from other funds 20,000 Due from developer 205,314 Inventory 1,479 Property, plant, and equipment, net of accumulated depreciation Other debits Amount available in Debt Selvice Funds Amount to be provided for long-term debt Total assets and other debits $ 1,045,543 $ 44,655 $ 12,162,423 $ 8,917,068 See notes to financial statements -4- ~---=-- -- - -- - - ------::jl--4_ ~ ~ m ~.II ~I Ii C' C C C C "III l.. r-' ~I m ,., l.J C, 01 C C C I I I I I I I I I I I I I I I I I I I Proprietary Fund Types Fiduciary Fund Type Totals (Memorandum Only) Account Groups General General Fixed Assets Long-Term (Unaudited) Debt Enterprise Internal Service Trust and Agency 1992 1991 $ 454,238 $ 50,000 $ 660,050 $ $ $ 17,187,932 $ 11,958,889 198,204 240,660 186,829 9,048 4,544 296,969 224,621 66,899 64,322 2,387 268,012 333,027 28,640 5,164,178 6,738,512 11,225 136,582 1,298,737 20,000 205,314 216,490 5,892 7,371 7,327 14,932,318 5,281,121 20,213,439 19,744,978 7,986,525 7,986,525 9,938,429 18,370,010 18,370,010 13,018,498 $ 15,641,952 $ 50,000 $ 664,594 $ 5,281,121 $ 26,356,535 $ 70,163,891 $ 63,730,659 (continued) -5- CITY OF ANDOVER Combined Balance Sheet All Fund Types and Account Groups (continued) As of December 31, 1992 (with Comparative Totals as of December 31,1991) Governmental Fund Types Special Debt Capital General Revenue Service Project liabilities, Equity, and Other Credits liabiliti es Accounts payable $ 138,172 $ 2,146 $ 956 $ 220,257 Contracts payable 27,240 165,258 Accrued expenses 11,715 2,151 20,840 Due to other funds 20,000 Due to other governmental units 86,473 Deposits payable 1,000 Deferred revenue 49,183 4,168,348 1,482,542 Arbitrage rebate 4,443 Contract for deed Bonds payable Total liabilities 313,783 2,146 4,175,898 1,908,897 Equity and other credits Investment in general fixed assets Contributed capital Retained earnings Designated for equipment Undesignated Fund balance (deficit) Reserved for debt service 8,332,557 Unreserved Designated for working capital 728,760 Designated for capital projects 7,822,882 Designated for equipment 3,000 178,883 Undesignated 42,509 (346,032) (993,594) Total equity and other credits 731,760 42,509 7,986,525 7,008,171 Total liabilities, equity, and other credits $ 1,045,543 $ 44,655 $ 12,162,423 $ 8,917,068 See notes to financial statements -6- --- --~1l1l__ c c c c o c c till ~L I 0' ~ ~ Wi ~I ..i I Wi I . C ", ~ W Ii C C C C jl 1 - I I I I I I I I I I I I I I I I I Proprietary Fund Types Fiduciary Fund Type Totals (Memorandum Only) Account Groups General General Fixed Assets Long-Term (Unaudited) Debt Enterprise Internal Service Trust and Agency 1992 1991 $ 33,732 $ $ 19,272 $ $ 176,782 $ 591,317 $ 376,063 1,097 193,595 64,962 12,617 74,712 122,035 150,502 20,000 86,473 74,650 473,650 474,650 371,360 5,700,073 8,513,788 4,443 11,137 37,944 37,944 47,430 26,066,000 26,066,000 22,642,000 46,349 492,922 26,356,535 33,296,530 32,251,892 5,281,121 5,281,121 5,044,226 14,826,847 50,000 14,876,847 14,637,378 33,640 768,756 768,756 627,668 8,332,557 9,969,679 728,760 668,121 7,822,882 2,145,265 181,883 174,323 171,672 (1,125,445) (1,821,533) 15,595,603 50,000 171,672 5,281,121 36,867,361 31,478,767 $ 15,641,952 $ 50,000 $ 664,594 $ 5,281,121 $ 26,356,535 $ 70,163,891 $ 63,730,659 -7- ~ CITY OF ANOOVER , Combined Statement of Revenue, Expenditures, and ClJanges in Fund Balance -- All Governmental Fund T~s and Expendable Trust Fund W Year Ended December 31, 1992 (with ComJmlltive Totals for Year Ended December 31, 1991) I 0 Governmental Fund Types I Special Debt Capital General Revenue SelVice Project W Revenue Taxes ad valorem $ 1,107,808 $ $ 379,091 $ Tax increments 630,706 Special assessments 3 3,002,046 1,233~~25 C Ucenses and pennits 430,024 Intergovernmental 614,266 1,150,727 293,406 Olarges for selVices 120,708 C Fines and forfeits 39,565 Other Interest earned on investments 30,417 3,663 360,929 322,727 Sale of property 38,228 C Park dedication fees 113,153 Refunds and reimbursemenls 45,865 Miscellaneom 11,088 3,108 44,826 Total revenue 2,399,741 3,666 4,895,901 2,676~~71 -- ~: i Expenditures ... Current General government 672,936 0 Public safety 908,312 Public works 442,176 27,869 Sanitation 28,976 Patks and recreation 204,267 Recycling 39,622 0 ' , Economic development 17,659 Unallocated 77 ,()(fJ Capital projects 4,735,509 U Debt selVice Principal 1,556,000 Interest and other 1,530,561 Total expenditures 2~~91,008 27,869 3,086,561 4,735,509 Excess (deficiency) of revenue over expenditures 8,733 (24,203) 1,809,340 (2,059,138) Other fmancing sources (uses) III Bond p~s 50,400 4,908,000 Operating transfers in 93,300 44,694 1,548,509 m Operating transfers (out) (1,616,073) Total other fmancing sources (uses) 93,300 95,094 4,840,436 Excess (deficiency) of revenue and C other fmancing sourc:es over expen- ditures and other fmancing uses 102,033 (24,203) 1,904,434 2,781,298 Fund balance C Beginning of year, as previously stated 670,007 66,712 9,938,429 234,043 Prior period adjmtment (880) (3,856~~38) 3,972,830 Beginning of year, as restated 669,727 66,712 6,082,091 4,206,873 Residual equity transfers in 20,000 C Residual equity transfers (out) (40,000) Fnd of year $ 731,760 $ 42,509 $ 7 ,986,525 $ 7,008.171 See notes to fmancial statements C I -8- e i ~~~ -;;=-c;:::~-- - - - - -----==-__=_ .-==::jJ4-:-- I I . I 1 Fiduciary Totals . . Fund Type (Memorandum Only) . . Expendatle ~ I Trost 1992 1991 j . I $ $ 1,486,899 $ 1,104,359 ;; 630,706 544,544 ~ I ~ 4,235,374 2,992,105 ;I I 430,024 230,298 2,058,399 1,048,406 I I 120,708 82,604 39,565 31,750 8,908 726,644 1,054,711 I 38,228 55,627 113,153 14,250 45,865 37,119 59,022 64,569 I 8,908 9,984,587 7,260,342 I 672,936 579,797 908,312 805,393 470,045 385,781 I 28,976 14,831 204,267 245,Cm 39,622 46,771 17,659 17,447 I 77,0fiJ 72,521 4.735,509 4,527,150 1,556,000 7,151,000 I 1,530,561 2,071,715 10,240,947 15,917,503 I 8,908 (256,360) (8,657,161 ) 4,958,400 6,101~'i00 e I 1,686,503 948,650 (63,300) (1,679,373) (941,520) (63,300) 4,965~'i30 6,108,630 , I (54,392) 4,709,170 (2,548,531) I 226,054 11,135,855 13,684,386 115,612 I 226,054 11,251,467 13,684,386 20,000 1,483,377 (40,000) (1,483,377) I $ 171,672 $ 15,940.637 $ 11,135,855 I -9- 1M CITY OF ANOOVER .. Combined Statement of Revenue and Expenditures W Budget and Actual General and Debt Service Funds Year Ended December 31, 1992 W General Fund Over fill (Under) i.J Budget Actual Budget Revenue ~ Taxes ad valorem $ 1,113,714 $ 1,107,808 $ (5,906) i Tax increments ~ Special assessments i1 licenses and pennits 332,121 430,024 97,903 . Intergovernmental 656,067 614,266 (41,801) . Charges for services 96,900 120,708 23,808 C Fines and forfeits 41,000 39,565 (1,435) Other Interest earned on investments 54,600 30,417 (24,183) !III Refunds and reimbursements 28,431 45,865 17,434 ~ i Miscellaneous 9,300 11,088 1,788 ... Total revenue 2,332,133 2,399,741 67,608 ~ I Expenditures - Current General government 661,597 672,936 11,339 ~ Public safety 906,944 908,312 1,368 liJ Public works 422,897 442,176 19,279 Sanitation 32,403 28,976 (3,427) ~ Parks and recreation 233,903 204,267 (29,636) Recycling 37,398 39,622 2,224 Economic development 18,307 17,659 (648) ~. Unallocated 91,984 77,060 (14,924) Debt service I Principal ~ Interest and other III Total expenditures 2,405,433 2,391,008 (14,425) Excess (deficiency) of 0: revenue over expenditures (73,300) 8,733 82,033 I Other financing sources (uses) 0 Bond proceeds c: Operating transfers in 93,300 93,300 Operating transfers (out) (20,000) 20,000 Total other financing sources (uses) 73,300 93,300 20,000 Excess (deficiency) of revenue and OJ other financing sources over expen- 01 ditures and other financing uses $ $ 102,033 $ 102,033 See notes to financial statements I -10- "1 L.J I - ---:::u:-::j:::::;::=------ - ]1 ]1 . i ~I . Debt Service Funds ~I Over (Under) . . Budget Actual Budget ~ I $ 390,449 $ 379,091 $ (11,358) 508,500 (508,500) I 1,667,570 3,002,046 1,334,476 254,797 1,150,727 895,930 I I 581,650 360,929 (220,721) 3,108 3,108 I 3,402,966 4,895,901 1,492,935 I I I I 1,556,000 1,556,000 1,475,008 1,530,561 55,553 I 3,031,008 3,086,561 55,553 I 371,958 1,809,340 1,437,382 1,500,000 50,400 (1,449,600) I 37,630 44,694 7,064 1,537,630 95,094 (1,442,536) , I I $ 1,909,588 $ 1,904,434 $ (5,154) I -11- ~ ; .' OTY OF ANDOVER I ~ Combined Statement of Revenue, Expenses, and Changes in Retained Earnings Proprietary Fund Types I Years Ended December 31, 1992 and 1991 C ; Totals Ii Internal (Memorandum Only) C Enterprise Service 1992 1991 , Operating revenue User charges $ 659,266 $ $ 659,266 $ 557,021 Meters 11,199 11,199 29,473 0 Permit fees 20,700 20,700 11,400 I Penalties 14,365 14,365 14,322 Other 39,237 39,237 6,366 C Total operating revenue 744,767 744,767 618,582 I Operating expenses 0 Personal services 141,506 141,506 119,003 Supplies 33,424 33,424 '29,163 Meters, etc. 1,435 1,435 21,930 Other services and charges 71,675 71,675 44,510 0 I Disposal charges 248,244 248,244 223,752 I Total operating expenses 496,284 496,284 438,358 U , Operating income before depreciation 248,483 248,483 180,224 Depreciation 377,054 377,054 348,614 jIIIIIl Operating loss (128,571) (128,571 ) (168,390) ~ Other income 0 Interest income 21,603 21,603 27,279 Loss before operating transfers (106,968) (106,968) (141,111) 0 Operating transfers in i I Debt Service Funds 30,500 30,500 30,500 Operating transfers (out) ~ Debt Service Funds (37,630) (37,630) (37,630) I Total operating transfers (7,130) (7,130) (7,130) C Net loss (114,098) (114,098) (148,241) Add credit for depreciation on contributed assets 367,158 367,158 339,155 C Income closed to reta.ined earnings 253,060 253,060 190,914 Retained earnings ~ Beginning of year, as previously stated 661,308 661,308 470,394 Prior period adjustment (115,612) (115,612) Beginning of year, as restated 545,696 545,696 470,394 C Residual equity transfers (out) (30,000) (30,000) I End of year $ 768,756 $ $ 768,756 $ 661,308 C See notes to financial statements Ii -12- 0 I ! -=-=-,~ - - --.------=----------::11-4- --. I CITY OF ANDOVER I Combined Statement of Cash Flows Proprietary Fund Types Years Ended December 31, 1992 and 1991 ! I Totals Internal (Memorandum Only) Enterprise Service 1992 1991 I Cash flows from operating activities Operating loss $ (128.571) $ $ (128,571) $ (168,390) Adjustments to reconcile operating loss to - net cash provided by operating activities . I i Prior period adjustment (115,612) (115,612) ! Depreciation 377,054 377,054 348,614 I Change in assets and liabilities Receivables Accounts (35,006) (35,006) (25,490) Delinquent special assessments 198 198 (320) I Deferred special assessments (11,477) (11,477) 3,059 Due from other governmental units (1,909) (1,909) (8,686) Inventory 1,435 1,435 (1,942) Accounts payable 26,732 26,732 (9,948) I Accrued expenses (1,653) (1,653) 4,984 Due to other governmental units (357) (357) (16,061) I Net cash provided by operating activities 11 0,834 110,834 125,820 I Cash flows from capital and related fmancing activities Acquisition of capital assets (51,993) (51,993) (13,955) I Cash flows from investing activities Interest received 19,484 19,484 23,239 I Cash flows from noncapital fmancing activities Operating transfer from Debt Service Funds 30,500 30,500 30,500 Operating transfer to Debt Service Funds (37,630) (37,630) (37,630) Residual equity transfer from General Fund 20,000 20,000 I Residual equity transfer from Enterprise Funds 30,000 30,000 Residual equity transfer to Internal Service Fund (30,000) (30,000) Net cash provided (used) by I noncapital fmanciIlg activities (37,130) 50,000 12,870 (7,130) Net increase in cash and temporary investments 41,195 50,000 91,195 127,974 I Cash and temporary investments Beginning of year 413,043 413,043 285,069 I End of year $ 454,238 $ 50,000 $ 504,238 $ 413,043 Supplemental schedule of noncash investing, capital, and fmancing activities I Assets contributed by other funds $ 467,233 $ $ 467,233 $ 1,695,827 I Prior period adjustment Assets contributed by customers $ 104,501 $ $ 104,501 $ Accumulated depreciation on contributed assets (15,107) (15,107) " I $ 89,394 $ $ 89,394 $ See notes to fmancial statements I -13- to W ml I 01 01 C c Ci I or i U' "';"'-;~,"",--- --=--~ - - -- - - --- - ---~---:=1I--.11 r-1. ..ii I Ci I 01 01 C ! U I: o I: I C i' 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 Notes to Financial Statements December 31, 1992 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 Notes to Financial Statements (continued) December 31, 1992 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2) Proprietary Fund Types a) Enterprise Flmds - 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. b) Internal Service Funds - The Internal Service 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 other departments within the government on a continuing basis be financed or recovered through charges to the user departments. 3) Fiduciary Fund llype a) Trust and Ag,ency 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-Term 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 cash 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 m:t 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 considi~red as available if collected within 60 days after year-end. State revenue is recognized in the year 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. -15- : ,-- -- ~:=::=II-::i~-----=--- --- c o C D ~ m ~ ~ ~ C C D C D ~ m m c c I I I I I I I I I I I I II I I I i I ~ I I I il CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 1 _ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major revenues susceptible 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 received in cash. 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 1992 budget was amended at the departmental level. The City made no significant amendments to the appropriations budgeted for 1992. 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 may 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- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 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. Inventories The inventories of the General Fund and the Proprietary Funds are 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. Fixed assets are valued at historical cost or estimated historical cost. No depreciation has been 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: Collection and distribution systems Machinery Furniture and equipment 50 years 20 years 3-15 years 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- ;:::;::;::~~ ~~. .- _. -.. - --.-----;;;;;;::::~-==:::::U__Ol C D ~ ~ I E E C D D C m m c 01 Ci I C C ~I I 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, 1992 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. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage-backed collateral). Authorized collateral includes the legal investments described below as well as certain first mortgage notes and certain other State or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. At year-end, the carrying amount of the City's deposits was $3,608,452, while the balance on the bank records was $3,940,169. 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 Notes to Financial Statements (continued) December 31, 1992 NOTE 2 - CASH AND TEMPORARY INVESTMENTS (CONTINUED) B. Security of 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 Ihe State of Minnesota or its municipalities, bankers' acceptances, futures contracts, repurchase or reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer thacn 270 days. The City's investments are: categorized below to give an indication of the level of custodial credit risk assumed at year-end. Catl~gory 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the 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 counterpany or by its trust department or agent but not in the City's name. Cash and temporary investments balances at December 31, 1992 are as follows: Custodial Credit Risk Category 2 3 Carrying Value Market Value Bankers' acceptances $ 1,039,736 $ Commercial paper 2,484,587 U.S. Government Securities 1.521.312 $ 5,045,635 $ - $ - $ 1,039,736 $ 1,045,673 1,375,275 3,859,862 3,872,841 4,106.754 5,628,066 5.801.534 - $ 5.482,029 10,527,664 10,720,048 Investment pools Minnesota Municipal Money Market Fund Fidelity Government Money Market Portfolio Piper J affray Institutional Government Income Fundi Piper Jaffray U.S. Government Money Market Fund 807,373 807,373 376,801 376,801 1,865,997 1,838,047 995 995 13,578,830 $ 13,743.264 3,608,452 650 $ 17,187.932 Total investments Deposits Cash on hand Total cash and temporary investments -19- ---;:: ...........b... ~I--- ~I C D C c m ~ ~ ~ c o D ; I ~ E C I ~ I -----~-:::-~ I 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, 1992 NOTE 3 - DUE FROM DEVELOPER 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. NOTE 4 - DUE FROM OTHER GOVERNMENTAL UNITS The amounts due from other governmental units at December 31, 1992 are composed of the following: Due from State of Minnesota State share of street improvement projects 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 recycling program costs Court fines and other Total due from Anoka County Due from Metropolitan Waste Control Commission Total from all sources NOTE 5 - PROPERTY AND EQUIPMENT A. Proprietary Fund Type Property and Equipment $ 26,696 31,087 20,928 30,615 14,146 2,156 98,932 10,954 $ 136,582 A summary of Proprietary Fund Type property, equipment, and accumulated depreciation follows: Water Sewer Total Furniture and equipment $ 247,493 $ 38,103 $ 285,596 Machinery 561,365 561,365 Collection and distribution systems 6,898,451 9,959,037 16,857 ,488 7,707,309 9,997,140 17,704,449 Less accumulated depreciation (960,913) (1,811,218) (2,772,131) $ 6,746,396 $ 8.185,922 $ 14,932,318 -20- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 5 - PROPERTY AND EQUIPMENT (CONTINUED) B. Changes in General F'ixed Assets A schedule of changes in general fixed assets (unaudited) by major asset type follows: Balance Balance Beginning End of of Year Additions Deletions Year Land and improvements $ 853,964 $ 23,519 $ 38,228 $ 839,255 Buildings and improvements 1,739,190 48,926 1,788,116 Furniture and equipment 288,272 52,441 340,713 Machinery and automotive equipment 2.162,800 171.318 21,081 2.313,037 $ 5,044.226 $ 296.204 $ 59.309 $ 5.281.121 NOTE 6 - LONG-TERM DEBT A. Summary of Changes in Long-Term Debt The following is a summary of changes in long-term debt of the City for the year ended December 31, 1992: Balance Balance Beginning New Debt Debt End of of Year Issues Retired Year Generallong-terrn debt General Obligation Bonds $ 22,340,000 $ 4,800,000 $ 1,450,000 $ 25,690,000 Certificates of Indebtedness 302,000 180,000 106,000 376,000 Assessments on City property 193,941 17,159 176,782 Capital lease obligations 3,962 2,865 1,097 Compensated absences payable 69,594 5,118 74,712 Contract for deed payable 47 .430 9.486 37.944 Total generallong-terrn debt $ 22.956.927 $ 4.985.118 $ 1.585.510 $ 26.356.535 -21- ~-- ~-~I"" C E C C ~ C C ~ E C C C E ~ E E m ! ~ --=-~ I CITY OF ANDOVER I Notes to Financial Statements (continued) December 31, 1992 I NOTE 6 - LONG- TERM DEBT (CONTINUED) I B. Components of Long-Term Debt I Final Balance Original Interest Issue Maturity at Issue Rate Date Date Year-End I General Long-Term Debt General Obligation Bonds Special Assessment Bonds Improvement Bonds of Series 1977 A $ 1,215,000 5.00% 3-01-77 1-01-06 $ 780,000 I Improvement Bonds of 1978 $ 270,000 5,25-6,00% 11-01-78 2-01-99 125,000 Improvement Bonds of 1979 $ 270,000 6.50% 10-01-79 2-01-95 75,000 Improvement Bonds of Series 1985A $ 300,000 8.25-9,60% 3-01-85 2-01-00 185,000 Improvement Bonds of Series 1985B $ 2,350,000 6.00-9,00% 8-01-85 8-01-00 1,445,000 I Improvement Bonds of Series 1986A $ 1,795,000 5.00-7,90% 7-01-86 8-01-01 1,195,000 Improvement Bonds of Series 1986B $ 2,600,000 4.75-6.30% 10-01-86 10-01-96 1,235,000 Refunding Bonds of Series 1986C $ 2,485,000 6.00-7.40% 8-01-86 8-01-02 2,065,000 Improvement Bonds of Series 1989A $ 3.200,000 6,10-6.80% 7-01-89 8-01-01 2,700,000 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 Improvement Bonds of Series 1991B $ 3,400 .000 5.40% 7-01-91 7-01-94 3,400,000 Temporary Improvement Bonds of Series 1992A $ 4,800,000 3,80% 8-01-92 8-01-95 4,800,000 I Tax Increment Bonds G,O, Tax Increment Bonds of Series 1987 A $ 1,065,000 8.25-9,90% 5-01-87 2-01-05 975,000 G.O, State-Aid Street Bonds I 1984 $ 510,000 6.75-9,00 % 9-01-84 9-01-94 110,000 1988 $ 500,000 5.60-6,80% 8-01-88 8-01-98 300,000 G.O, Fire Station Bonds of Series 1991A $ 2.500,000 5,00-6,50% 7-01-91 7-01-01 2.250.000 I Total General Obligation Bonds 25,690,000 Cemficates of Indebtedness 1992 Certificates of Indebtedness $ 180.000 4,25-5,75% 8-01-92 8-01-97 180,000 I 1989 Cemficates of Indebtedness $ 110.000 6.25-6,35% 12-01-89 12-01-94 44,000 1990A Cemficates of Indebtedness $ 252,000 6.30-6,70% 12-31-90 1-01-96 152.000 Total Cemficates of Indebtedness 376,000 I Assessments on City property $ 338,174 6.25-10.70% N/A 2001 176,782 Capital lease obligation AT&T phone system $ 10,267 11.50% 5-10-88 5-10-93 1,097 I Contract for deed payable $ 47,430 9,00% 8-05-91 8-01-96 37,944 Compensated absences payable N/A N/A N/A N/A 74.712 I Total General Long-Term Debt $ 26.356.535 I I -22- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 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 1993 $ 7,102,369 $ 129,980 $ 1,129 $ 12,689 $ 7,246,167 1994 6,153,415 123,814 11,836 6,289,065 1995 7,346,340 97,407 10,982 7,454,729 1996 2,208,516 40,068 10,129 2,258,713 1997 1,784,246 38,070 1,822,316 Thereafter ~~10.453 6.810.453 31,405,339 429,339 1,129 45,636 31,881,443 Less amount representing interest ---2...:715.339 53.339 32 7.692 5.776.402 .L.l2.:590 .000 $ 376.000 $ 1.097 $ 37.944 $ 26.105.041 D. Descriptions and Restrictions of Long-Term Debt 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 the City. The issues will be repaid from allocations made to the City's accounts in the Municipal State-Aid Street Fund. 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. -23- r=- c --:-- - - ----,r:::::;;;~----- ~ D C C C C C D I ~ ~ c ~ m m I W m I m -~ I 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, 1992 NOTE 6 - LONG-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 phone system under an agreement classified as a capital lease that bears an interest rate of 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, 1992 is $7,986,525. 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 $3,867,544 at December 31, 1992. 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 1992 were as follows: -24- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 7 - PROPRIETARY FUNDS' CONTRIBUTED CAPITAL (CONTINUED) Internal Service Enterprise Funds Fund Water Sewer Central Equipment Fund Fund Total Maintenance Fund Total Balance, beginning of year, as previously reported $ 6,398,965 $ 8,238,413 $ 14,637,378 $ - $ 14,637,378 Prior period adjustment 89 ,394 89 .394 89.394 Balance, beginning of year, as restated 6,488,359 8.238,413 14,726,772 14.726,772 Capital contributed From other funds 310,116 117,481 427,597 (1) 50,000 477 ,597 From utility customers 39,636 39,636 39,636 Less current year's depreciation on contributed assets (169.152) (198,006) (367.158) (367 .158) Balance, end of year $ 6.668.959 $ 8.157 .888 $ 14.826.847 $ 50.000 $ 14.876.847 (1) This $50,000 consists of residual equity transfers from the General, Water Enterprise, and Sewer Enterprise Funds (see Note 10). 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, 1992 is as follows: Water Fund Sewer Fund Total Operating revenue $ 315,919 $ 428,848 $ 744,767 Operating expenses $ 196,034 $ 300,250 $ 496,284 Depreciation expense $ 177,604 $ 199,450 $ 377,054 Operating loss $ (57,719) $ (70,852) $ (128,571) Net loss $ (41,910) $ (72,188) $ (114,098) Operating transfers in $ - $ 30,500 $ 30,500 Operating transfers (out) $ - $ (37,630) $ (37,630) Current capital contributed $ 349,752 $ 117,481 $ 467,233 Property and equipment additions $ 488,224 $ 135,503 $ 623,727 Net working capital $ 347,021 $ 316,264 $ 663,285 Total assets $ 7,128,769 $ 8,513,183 $ 15,641,952 Total equity $ 7,093,417 $ 8,502,186 $ 15,595,603 -25- ~ --- ~ .-_ -:--;;:U-'i~ ~------ -- a D B C a D c C & C m ~ I I I I ~ ~ ~ ~ I CITY OF ANDOVER I Notes to Financial Statements (continued) December 31, 1992 I NOTE 9 - INTERFUND RECEIVABLES AND PAYABLES I Individual fund interfund receivables and payables at year-end were as follows: I Interfund Interfund Fund Receivable Pavable General Fund $ 20,000 $ Kelsey Round Lake Park Capital Project Fund 20,000 $ 20,000 $ 20,000 I I I NOTE 10 - TRANSFERS I The following transfers were made during the year ended December 31, 1992: I 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 63,300 To fund administrative costs, Special Assessment Capital Special Assessment Capital 1,479,787 To transfer 1992 Improvement Project Fund - Unfmanced Project Fund - Improvement Bond proceeds to be used for Improvement Account Bonds Series 1992 Construction previously unfmanced Account improvement projects, Special Assessment Capital Permanent Improvement 68,722 To provide funding for Project Fund - Unfmanced Revolving Capital Project Fund previously unfmanced Improvement Account improvement projects. Special Assessment Bonds Debt Special Assessment Capital 7,064 To transfer amounts assessed for Service Fund - Improvement Project Fund - Improvement debt service collected in other Bonds Series 1992 Account Bonds Series 1992 Construction funds. Account 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, Total $ 1.717.003 I I I I I I I I I -26- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 10 - TRANSFERS (CONTINUED) B. Residual Equity Transfers Transferred To Transferred From Amount Description $ 20,000 To provide funding for Kelsey Round Lake Park project. 20,000 To finance start-up of Central Equipment Maintenance Fund (I). 20,000 To fmance start-up of Central Equipment Maintenance Fund (I). 10,000 To fmance start -up of Central Equipment Maintenance Fund (I). $ 70,000 Kelsey Round Lake Park Capital General Fund Project Fund Central Equipment Maintenance General Fund Internal Service Fund Central Equipment Maintenance Water Enterprise Fund Internal Service Fund Central Equipment Maintenance Sewer Enterprise Fund Internal Service Fund Total (1) As these three residual equity transfers increase contributed equity in the Central Equipment Maintenance Internal Service Fund (see Note 7) they are not reflected on the Combined Statement of Revenue, Expenses, and Changes in Retained Earnings for the Year Ended December 31, 1992. Therefore, these transfers in, which total $50,000, must be included to reconcile residual equity transfers in and out within the general purpose financial statements. NOTE 11 - INDIVIDUAL FUND DISCLOSURES The following funds had dl~ficits as of December 31, 1992: Fund Deficit Debt Service Funds 1991A G.O. Bonds Capital Project Funds State-Aid $ 11,675 $ 247,514 The deficit in the 1991A G.O. Bonds Debt Service Fund will be financed through future tax levies. The deficit in the State Aid Capital Project Fund will be financed through future special assessments. -27- -:"":;~~ - --=:::H~- - C I B D I I ~ C m C E I I I I 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 Notes to Financial Statements (continued) December 31, 1992 NOTE 11 - 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 1992, expenditures at the fund level exceeded appropriations as follows: Amount Over Budget Debt Service Funds 1991A G.O. Bonds Certificates of Indebtedness Tax Increment Bonds Special Assessment Bonds $ 1,881 $ 588 $ 45 $ 53,039 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City of Andover are covered by defined benefit pension plans administered by the Public Employees' Retirement Association of Minnesota (PERA). PERA administers the Public Employees' Retirement Fund (PERF) which is a cost-sharing, multiple- employer retirement plan. 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. The payroll for employees covered by PERF for the year ended December 31, 1992 was $721,450 compared to the City's total payroll of $869,020. -28- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after 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 a 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 of service 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 PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. B. Contributions Required and Contributions Made Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the: pension plans equal to the amount required by State Statutes. According to Minnesota Statutes Chapter 356.215, Subdivision 4(g), the date of full funding required for the PERF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutory Rates Emolovees Emolover Required Rates PERF (BalSic and Coordinated Plans) 4.41% 4.74% 9.95% Total contributions made by the City during fiscal year 1992 were: Amounts Emolovees Emolover Percentage of Covered Pavroll Emolovees Emolover PERF $ 30.518 $ 32.321 4.48% 4.23% The City's contribution for the year ended December 31, 1992 to the PERF represented 0.030% of total contributions required of all participating entities. -29- :---_""v" -=-=-oc----:- - - - - "----=rl---- I C C B a I I o B C C G E I I 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 Notes to Financial Statemej1ts(continued) December 31, 1992 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) C. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess 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 obligation as of June 30, 1992 is shown below: Total pension benefit obligation $ 4,868,124,000 Net assets available for benefits, at cost (market value for PERF = $4,068,082,000) 3.933,124,000 Unfunded pension benefit obligation $ 935,000.000 The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1992. Net assets available to pay pension benefits were valued as of June 30, 1992. 2. Changes in Benefit Provisions Effective for the June 30, 1992 valuation, legislative activity since the last actuarial valuation resulted in some minor changes in benefit provision. These changes did not have a significant impact on the PERF. 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, 1992. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Party Investments As of June 30, 1992, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. -30- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 13 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION A. Plan Description 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, 1992 was $93,405. The City's total payroll was $869,020. 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. B. Pension Benefits Minnesota State Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A fire fighwr 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. 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. -31- - r- - ---------..::;--- ------=-rr' D C D D C D C ~ 8 ~ C C I m E ; I ~ m _.~ I 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, 1992 NOTE 13 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION (CONTINUED) Upon the death of any member of the Association who is in good standing at the time of 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 1992, the City contributed $47,041 to the Association, consisting of $33,741 State aid and $13,300 fulfilling the City's $350 per member contribution obligation for the year ended December 31, 1992. The City's contribution represents 14.24% of covered payroll. NOTE 14 - TAX INCREMENT FINANCING DISTRICTS The City is the administering authority for the following tax increment financing districts within their respective Development Districts: Total Tax Increment Bonds Issued Amounts Redeemed Tax Increment Tax Increment District - District - Development Development District No. 1-1 District No. 1-2 Redevelopment Redevelopment 472 472 1986 1986 2012 2012 $ 42,271 $ 28,657 $ 408,368 $ 230,164 $ 366,097 $ 201,507 $ 205,000 $ 1,065,000 205.000 90.000 $ $ 975.000 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 Bonds Outstanding - End of Year -32- Debt Capital General Service Project Enterprise Fund Funds Funds Funds Total Fund balance/retained earnings at December 31, 1991, as previously reported $ 670,607 $ 9,938,429 $ 234,043 $ 661,308 $ 11 ,504,387 Prior period adjustments 1) (1,321,150) 1,321,150 2) (880) (42,683) 49,811 (6,248) 3) (2.492.505) 2,601.869 (109 ,364) Total net effect (880) (3,856.338) 3.972.830 015,612) Fund balance/retained earnings at December 31, 1991, as restated $ 669,727 $ 6,082,091 $ 4 ,206,873 $ 545,696 $ 11.504,387 B e I e I E C C 8 I C ~ I C m m ~ E E CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1992 NOTE 15 - COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31, 1992, 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 $303,000. 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. NOTE 16 - PRIOR PERIOD ADJUSTMENTS The City made several prior period adjustments which had the following effects on fund balance/retained earnings as of December 31, 1991: The prior period adjustments above are described as follows: 1) This adjustment was made to reclassify the Water Trunk and Sewer Trunk Accounts from the Special Assessmelllt Debt Service Fund to the Special Assessment Capital Project Fund. The City believes due to the nature of the activity being recorded in these accounts, this activity should be reported in a Capital Project Fund. Therefore, this adjustment is to correct the cumulative net effect of previous years' activity in these accounts which had been reported in a Debt Service Fund. 2) This adjustment was made to reclassify a number of improvement project costs to record them in the funds which financed the projects. The costs were originally incurred in 1989. -33- -- '-I ~~I--4_ I 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, 1992 NOTE 16 - PRIOR PERIOD ADJUSTMENTS (CONTINUED) 3) This adjustment was made to reclassify several special assessment roll collections to record them in the funds which financed the related improvement projects. These receipts were originally collected in fiscal years 1989 and before. The City also recorded a prior period adjustment in the Water Enterprise Fund to record the net book value ($89,394) of water meters contributed to the City through fees assessed to customers. As this adjustment affects only contributed equity, it is included in the reconciliation of that account (Note 7) and is not reflected on the Combined Statement of Revenue, Expenditures, and Changes in Retained Earnings - Proprietary Fund Type for the year ended December 31, 1992. -34- I I I I I I I I I I I I I I I I I I I COMBINING AND INDNIDUAL FUND STATEMENTS I I I I I I I I I I I I I I I I I I I CITY OF ANOOVER General Fund Comparative Balance Sheet As of December 31,1992 and 1991 Assets Cash and temporary investments Receivables Accounts Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other funds Due from other governmental units Inventory Total assets liabilities and Fund Balance liabilities Accounts payable Contract payable Accrued expenses Due to other governmental units Deposits payable Deferred revenue Total liabilities Fund balance Umeserved Designated for working capital Designated for equipment Total fund balance Total liabilities and fund balance -35- 1992 1991 $ 872,183 $ 734,344 26,495 20,713 12,220 6,407 46,385 38,304 2,330 350 467 7,102 20,000 63,984 73,834 1,479 $ 1,045,543 $ 881,054 $ 138,172 $ 58,113 27,240 11,715 32,361 86,473 74,217 1,000 49,183 45,756 313,783 210,447 728,760 3,000 731,760 $ 1,045,543 668,121 2,486 670,607 $ 881,054 ~ CITY OF ANDOVER C General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance 0 Budget and Actual Year Ended December 31,1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) t: 1992 1991 Over C (Under) Budget Actual Budget Actual Revenue E Taxes ad valorem $ 1,113,714 $ 1,107,808 $ (5,906) $ 1,017,774 Licenses and permits 332,121 430,024 97,903 230,298 C Intergovernmental revenue Federal CDBG 47,723 35,846 (11,877) 37,667 ~ State Local government aid 38,841 42,147 3,306 45,529 HACA and other tax credits 353,989 338,314 (15,675) 372,110 ! Street maintenanc:e 97,421 97,421 87,487 Fire department aid 33,741 33,741 33,047 Other 84,352 66,797 (17,555) 64,478 E Total intergovern- mental revenue 656,067 614,266 (41,801) 640,318 Charges for services ~ General government 20,100 38,912 18,812 22,749 Street lights 73,600 75,583 1,983 56,375 C Utility Funds 3,200 6,213 3,013 3,480 Total charges for services 96,900 120,708 23,808 82,604 Fines and forfeits 41,000 39,565 (1,435) 31,750 C Other revenue Interest earned on investments 54,600 30,417 (24,183) 27,248 E Refunds and reimbw'sements 28,431 45,865 17,434 37,119 ,c Miscellaneous 9,300 11,088 1,788 6,923 Total other revenue 92,331 87,370 (4,961) 71,290 I Total revenue 2,332,133 2,399,741 67,608 2,074,034 Expenditures ; General government Council Personal services 15,581 15,577 (4) 14,834 m Supplies 300 217 (83) 286 Other services and charges 18,416 16,723 (1,693) 17,974 Total council 34,297 32,517 (1,780) 33,094 m (continued) -36- ~ ~:'---";~ T -:--=-n:::;;;~ -----=---- - ----- ----- I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) I Budget and Actual Year Ended December 31,1992 (with Comparative Actual Amounts for Year Ended December 31,1991) I 1992 1991 Over I (Under) Budget Actual Budget Actual Expenditures (continued) I General government (continued) Mayor Personal services 4,521 4,521 4,509 I Elections Personal services 14,632 15,030 398 2,764 Supplies 1,050 245 (805) 39 I Other services and charges 425 911 486 32 Total elections 16,107 16,186 79 2,835 I Newsletter Personal services 701 1,287 586 1,056 Other services and charges 4,070 4,000 (70) 2,050 I Total newsletter 4,771 5,287 516 3,106 Administration I Personal services 100,687 101,478 791 99,628 Supplies 1,300 1,228 (72) 1,031 Other services and charges 24,885 24,557 (328) 7,105 I Capital outlay 271 271 Total administration 126,872 127,534 662 107,764 Financial administration I Personal services 95,018 100,184 5,166 96,221 Supplies 1,200 1,949 749 990 Other services and charges 4,527 4,293 (234) 5,071 I Capital outlay 183 183 Total financial administration 100,745 106,609 5,864 102,282 I Assessing Other services and charges 38,289 39,047 758 33,621 I Consulting staff Auditing 10,000 10,498 498 10,255 I Legal 50,800 60,720 9,920 52,981 Total consulting staff 60,800 71,218 10,418 63,236 I (continued) I -37- CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) Budget and Actual Year Ended December 31, 1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) Expenditures (continued) General government (continued) Planning and zoning Personal services Supplies Other services and charges Capital outlay Total planning and zoning Data processing Supplies Capital outlay Total data processing Buildings Administration building Personal services Supplies Other services and charges Capital outlay Total admiJllistra- tion building Fire department building Personal services Supplies Other services and charges Capital outlay Total fire depart- ment building Public works building Personal services Supplies Other services and charges Capital outlay Total public works building ::::; --.- -;C-l-- --- Budget 46,097 1,500 6,569 54,166 20,250 28,498 48,748 5,164 4,000 22,711 13,500 45,375 764 2,820 27,980 31,564 1,145 3,000 13,243 17,388 -38- 1992 Actual 44,996 1,217 5,578 182 51,973 17,136 28,243 45,379 7,374 4,244 21,099 14,802 47,519 379 3,501 29,569 33,449 2,670 3,516 13,918 20,104 Over (Under) Budget (1,101) (283) (991) 182 (2,193) (3,114) (255) (3,369) 2,210 244 (1,612) 1,302 2,144 (385) 681 1,589 1,885 1,525 516 675 2,716 1991 I o ~ m Actual I 45,455 1,395 5,087 E E ~ ~ ~ ~ C ~ m I I I ! e B 51,937 16,590 4,516 21,106 7,393 4,438 20,593 7,761 40,185 364 1,163 15,885 506 17,918 5,579 2,308 16,652 6,767 31,306 (continued) -~-=~U::il~~---- - ---___ I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) I Budget and Actual Year Ended December 31,1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) I 1992 1991 Over I (Under) Budget Actual Budget Actual Expenditures (continued) I General government (continued) Buildings (continued) Senior citizen center I Personal services 1,912 608 (1,304) 631 Supplies 250 139 (111) 423 Other services and charges 5,913 5,053 (860) 5,822 I Total senior citizen center 8,075 5,800 (2,275) 6,876 Storage building Supplies 360 622 262 23 I Other services and charges 2,615 1,415 (1,200) 1,838 Capital outlay 1,057 1,057 Total storage building 4,032 3,094 (938) 1,861 I Total buildings 106,434 109,966 3,532 98,146 I Engineering Personal services 57,484 56,040 (1,444) 52,566 Supplies 2,700 1,924 (776) 2,341 I Other services and charges 5,663 4,735 (928) 3,254 Total engineering 65,847 62,699 (3,148) 58,161 I Total general government 661,597 672,936 11,339 579,797 Public safety I Police protection Supplies 75 75 Other services and charges 411,662 410,855 (807) 403,354 Total police protection 411,737 410,930 (807) 403,354 I Fire protection Personal services 133,148 113,025 (20,123) 107,216 I Supplies 39,726 33,066 (6,660) 28,783 Other services and charges 47,637 55,610 7,973 52,737 Relief Association 47,041 47,041 43,547 I Capital outlay 7,424 24,734 17,310 1,708 Total fire protection 274,976 273,476 (1,500) 233,991 I I (continued) -39- CITY OF ANDOVER ~ General Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) Budget and Actual C Year Ended December 31, 1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) 1992 1991 C Over (Under) ~ Budget Actual Budget Actual Expenditures (continued) Public safety (continued) E Rescue service Personal services 16,300 17,902 1,602 18,921 Supplies 4,610 3,543 (1,067) 4,021 ~ Other services and charges 11,470 9,233 (2,237) 8,273 Capital outlay 654 654 Total rescue service 32,380 31,332 (1,048) 31,215 C Protective inspection Personal services 124,272 124,667 395 115,825 Supplies 6,850 7,615 765 6,369 ~ Other services and charges 18,631 20,824 2,193 3,106 Capital outlay 21,501 21,802 301 Total prote,ctive inspection 171,254 174,908 3,654 125,300 C Civil defense Supplies 1,250 1,851 601 74 C Other services and charges 5,112 6,058 946 1,357 Total civil defense 6,362 7,909 1,547 1,431 Animal control C Personal services 280 Supplies 110 137 27 98 Other services and charges 10,125 9,620 (505) 9,724 ~ Total animal control 10,235 9,757 (478) 10,102 Total public safety 906,944 908,312 1,368 805,393 C Public works Streets and highways ~ Personal services 109,643 114,870 5,227 86,255 Supplies 24,770 27,768 2,998 27,590 Other services and charges 40,620 42,362 1,742 26,964 I Capital outlay 17,500 17,124 (376) 17,224 Total streets and highways 192,533 202,124 9,591 158,033 I E (continued) -40- I .............. -;-:1 ---. - - --- - --- - -- ---~--;::II"""'l11_=_ --==---.- --- --:-~; I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) I Budget and Actual Year Ended December 31,1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) I 1992 1991 Over I (Under) Budget Actual Budget Actual Expenditures (continued) I Public works (continued) Snow and ice removal Personal services 65,063 32,002 (33,061) 58,057 I Supplies 42,060 91,025 48,965 57,375 Other services and charges 11,989 9,836 (2,153) 15,497 Total snow and ice removal 119,112 132,863 13,751 130,929 I Street lighting Other services and charges I City 14,450 15,425 975 14,067 Billable 41,914 44,632 2,718 42,038 Capital outlay I City 1,340 1,340 Billable 12,700 12,701 1 Total street lighting 69,064 74,098 5,034 56,105 I Street signs/signals Personal services 17,924 12,222 (5,702) 13,574 I Supplies 12,750 12,140 (610) 6,276 Other services and charges 11,514 8,729 (2,785) 7,542 Capital outlay 1,679 I Total street signs/signals 42,188 33,091 (9,097) 29,071 Total public works 422,897 442,176 19,279 374,138 I Sanitation Storm sewers Personal services 17,232 11,162 (6,070) 7,715 I Supplies 3,746 1,547 (2,199) 1,577 Other services and charges 1,710 8,214 6,504 295 Total storm sewers 22,688 20,923 (1,765) 9,587 I I I (continued) I -41- CITY OF ANDOVER I General Fund ~ Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) Budget and Actual Year Ended December 31, 1992 C (with Comparative Actual Amounts for Year Ended December 31, 1991) 1992 1991 ~ Over (Under) I Budget Actual Budget Actual Expenditures (continued) Sanitation (continued) I Trees and weed control Personal services 4,785 4,687 (98) 4,581 Supplies 810 519 (291) 105 Other services and charges 4,120 2,381 (1,739) 558 I Capital outlay 466 466 Total trees and weed control 9,715 8,053 (1,662) 5,244 Total sanitation 32,403 28,976 (3,427) 14,831 ; Parks and recreation I Personal services 79,411 82,534 3,123 96,825 Supplies 21,080 21,115 35 22,194 Other services and charges 21,703 24,235 2,532 19,114 E Community education programs 44,291 45,068 777 36,658 Assessments 16,745 20,642 3,897 21,390 Capital outlay 50,673 10,673 (40,000) 48,916 C Total parks and recreation 233,903 204,267 (29,636) 245,097 Recycling E .. Personal services 15,348 13,195 (2,153) 10,841 Supplies 2,200 1,275 (925) 1,548 Other services and charges 11,350 16,583 5,233 11,654 I Capital outlay 8,500 8,569 69 22,728 Total recycling 37,398 39,622 2,224 46,771 Economic development I Personal services 17,107 17,143 36 17,058 Supplies 300 153 (147) 238 I Other services and charges 900 363 (537) 151 Total economic development 18,307 17,659 (648) 17,447 C I 0 (continued) -42- E -~.- ,- --- ~I..~ - ~ =-- I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) Budget and Actual I Year Ended December 31, 1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) I 1992 1991 Over I (Under) Budget Actual Budget Actual Expenditures (continued) I Unallocated CDBG 47,723 44,345 (3,378) 36,082 Metropolitan Waste 2,872 I Control Commission Insurance 24,000 26,804 2,804 27,030 LRRWMOO 5,000 4,307 (693) 2,540 SiteQ 2,075 I Waste disp. engineer site 881 881 Miscellaneous 950 650 (300) 1,922 Contingency 14,311 73 (14,238) I Total unallocated 91,984 77,060 (14,924) 72,521 Total expenditures 2,405,433 2,391,008 (14,425) 2,155,995 I Excess (deficiency) of revenue over expenditures (73,300) 8,733 82,033 (81,961) I Other financing sources (uses) Operating transfers in Debt Service Funds 30,000 I Capital Project Funds 30,000 30,000 Administrative Trust Fund 63,300 63,300 104,800 Operating transfers (out) I Capital Project Funds (20,000) 20,000 Total other financing sources (uses) 73,300 93,300 20,000 134,800 I Excess (deficiency) of revenue and other I financing sources over expenditures and other financing uses $ 102,033 $ 102,033 52,839 I Fund balance Beginning of year, as previously stated 670,607 617,768 I Prior period adjustment (880) Beginning of year, as restated 669,727 617,768 Residual equity transfers (out) (40,000) I End of year $ 731,760 $ 670,607 I -43- Assets CITY OF ANOOVER Special Revenue Funds Combining Balance Sheet As of December 31,1992 (with Comparative Totals as of December 31,1991) lRRWMO Cash and temporary investments Receivables Accrued interest Delinquent special assessments $ 5,413 118 Total assets $ 5,531 liabilities and Flmd Balance liabilities Accounts payable Deferred revenue Total liabilities Fund balance Unreserved Undesignated Total liabilities and fund balance ~....... $ 5,531 $ 5,531 -44- ~~-,---- Drainage and Mapping $ 37,929 1,195 $ 39,124 $ 2,146 2,146 36,978 $ 39,124 Totals 1992 1991 I C C C B ~ C i E E C e ~ B D E E a I $ 43,342 $ 66,092 1,313 1,025 21 $ 44,655 $ 67,138 $ 2,146 $ 405 21 2,146 426 42,509 66,712 $ 44,655 $ 67,138 ~=:-=;;;;".... ----===--- -- -- -- -- ------=-~;::: I I I I I 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, 1992 (with Comparative Totals for Year Ended December 31,1991) Drainage and Totals IRRWMO Mapping 1992 1991 Revenue Special assessments $ $ 3 $ 3 $ 3 Other revenue Interest earned on investments 3,663 3,663 4,738 Total revenue 3,666 3,666 4,741 Expenditures Public works Interest 590 590 Other services and charges 27,279 27,279 11,643 Total expenditures 590 27,279 27,869 11,643 Excess (deficiency) of revenue over expenditures (590) (23,613) (24,203) (6,902) Other financing sources Operating transfers in Capital Project Funds 8,202 Excess (deficiency) of revenue and other financing sources over expenditures (590) (23,613) (24,203) 1,300 Fund balance Beginning of year 6,121 60,591 66,712 65,412 End of year $ 5,531 $ 36,978 $ 42,509 $ 66,712 -45- CITY OF ANDOVER. Debt Service Funds Combining Balance Sheet As of December 31, 1992 (with Comparative Totals as of December 31, 1991) 1991A G.O. Bonds Assets Cash and temporary investments (deficit) Receivables Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Due from developer $ (15,698) 8,931 4,024 Total assets $ (2,743) liabilities and Fund Balance (Deficit) liabilities Accounts payable Accrued expenses Due to other governmental units Deferred revenue Arbitrage rebate Total liabilities Fund balance (deficit) Reserved for debt service Unreserved Undesignated Total fund balance (deficit) Total liabilities and fund balance (deficit) -46- ~-.......~. ....- I . ,---- Certificates of Indebtedness $ (177) 3,938 1,156 $ 4,917 -- ~--:--=n-.>l-==== State- Aid Bonds $ 10,001 132 $ 10,133 $ 10,133 10,133 $ 10,133 c ~ C E I ; E C E ! t t C E E t C C ~ -- - ~ ;;:: I I I I I Tax Special Increment Assessment Totals Bonds Bonds 1992 1991 I I $ 1,058,008 $ 6,784,742 $ 7,836,876 $ 9,763,195 135,408 135,540 165,705 I 12,869 26,018 71,691 107,427 179,118 317,009 3,976,360 3,976,360 5,993,429 I 16,480 21,660 928,500 216,490 I $ 1,129,699 $ 11,020,417 $ 12,162,423 $ 17,410,346 I $ $ $ $ 956 956 9,677 I 1,782 2,151 3,764 26 71,691 4,083,787 4,168,348 7,447,313 I 4,443 4,443 11,137 71,691 4,090,968 4,175,898 7,471,917 I 1,058,008 7,263,806 8,332,557 9,969,679 I (334,357) (346,032) (31,250) 1,058,008 6,929,449 7,986,525 9,938,429 I $ 1,129,699 $ 11,020,417 $ 12,162,423 $ 17,410,346 I I I -47- CITY OF ANDOVER ~ Debt Service Funds C Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1992 (with Comparative Totals for Year Ended December 31,1991) ~ 1991A Certificates State- t G.O. of Aid Bonds Indebtedness Bonds Revenue Taxes ad valorem $ 308,136 $ 70,955 $ E Tax incremmts Special assessments Intergovernmental revenue C State aids 135,920 HACA and other tax credits 98,402 22,039 County reimbursemmts Other revenue E Interest earned on investmmts 313 238 Sale ofland MiscelIaneous C Total revenue 406,851 92,994 136,158 Expenditures Debt service E Principal retirement 250,000 106,000 100,000 Interest 141,599 19,034 36,801 Arbitrage rebate & Other 657 1,299 Total expenditures 392,256 125,034 138,100 Excess (deficimcy) of t revenue over expen ditures 14,595 (32,040) (1,942) Other fmancing sources (uses) Bonds proceeds t Operating transfers in Debt Service Funds Capital Project Funds C Enterprise Funds 37,630 Operating transfers (out) General Fund Debt Service Funds E Capital Project Funds Enterprise Funds Total other fmancing sources (uses) 37,630 Excess (deficimcy) of revenue and t other fmancing sources over expen- ditures and other fDlancing uses 14,595 5,590 (1,942) C Fund balance (deficit) Beginning of year, as previcusly stated (26,270) (4,980) 12,075 Prior period adjustmmt t Beginning of year, as restated (26,270) (4,980) 12,075 Residual equity transfers in Residual equity transfers (out) C End of year $ (11,675) $ 610 $ 10,133 -48- E .~~......... -- , -I --- - ~,.. - ----- - ~~-- Tax Special Increment Assessment Totals Bonds Bonds 1992 1991 $ _ $ _ $ 379,091 $ 86,585 544,544 - 3,002,046 3,002,046 2,387,518 1 - - 135,920 142,400 - 120,441 32,969 894,366 894,366 - i - 360,378 360,929 760,949 - - - 55,627 = 3,108 3,108 57,317 4,259,898 4,895,901 4,067,909 40,000 1,060,000 1,556,000 7,151,000 95,212 1,178,521 1,471,167 1,747,147 - 6,378 6,378 234,916 796 50,264 53,016 89,652 136,008 2,295,163 3,086,561 9,222,715 (136,008) 1,964,735 1,809,340 (5,154,806) - 50,400 50,400 3,389,500 - 7,064 7,064 421,411 _ _ - 91,913 37,630 37,630 - (30,000) _ (75 (,411) (75,918) - - (30,500) - 57,464 95,094 3,382,625 (136,008) 2,022,199 1,904,434 (1,772,181) 1,194,016 8,763,588 9,938,429 10,388,198 ' - (3,856,338) (3,856,338) - 1,194,016 4,907,250 6,082,091 10,388,198 - - - 1,394,046 - - - (71,634) $ 1058,008 $ 6,929,449 $ 7,986,525 $ 9,938,429 1 -49 c o D t t D E C C L C C C E C E C t t "- ~_ --I _ --==n~- - - ------=~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER 1991A G.O. Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) 1992 1991 Over (Under) Budget Actual Budget Actual Revenue Taxes ad valorem $ 318,649 $ 308,136 $ (10,513) $ Intergovernmental revenue HACA and other tax credits 96,758 98,402 1,644 Interest earned on investments 313 313 24,666 Miscellaneous 6,877 Total revenue 415,407 406,851 (8,556) 31,543 Expenditures Debt service Principal retirement 250,000 250,000 Interest 139,375 141,599 2,224 72,813 Other 1,000 657 (343) Total expenditures 390,375 392,256 1,881 72,813 Excess (deficiency) of revenue over expenditures 25,032 14,595 (10,437) (41,270) Other financing sources Bond proceeds 15,000 Excess (deficiency) of revenue and other financing sources over expenditures $ 25,032 14,595 $ 00,437) (26,270) Fund balance (deficit) Beginning of year (26,270) End of year $ (11,675) $ (26,270) -50- CITY OF ANDOVER C Certificates of Indebtedness Debt Service Fund D Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual C Year Ended December 31, 1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) D 1992 1991 Over t (Under) Budget Actual Budget Actual Revenue E Taxes ad valorem $ 71,800 $ 70,955 $ (845) $ 86,585 Intergovernmental revenue r HACA and other tax credits 21,239 22,039 800 32,692 Total revenue 93,039 92,994 (45) 119,277 Expenditures C Debt service Principal retirement 106,000 106,000 125,000 m Interest 18,446 19,034 588 29,103 Total expenditures 124,446 125,034 588 154,103 Excess (deficiency) of C revenue over expenditures (31,407) (32,040) (633) (34,826) Other financing sources t Operating transfers in Enterprise Funds 37,630 37,630 37,630 t Excess (deficiency) of revenue and oth.er financing C sources over expenditures $ 6,223 5,590 $ (633) 2,804 Fund balance (deficit) Beginning of year (4,980) (7,784) E End of year $ 610 $ (4,980) E e C t -51- C ~~--::-- --.- __ -:---11..- ---~ ~ 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 31,1992 (with Comparative Totals as of December 31,1991) State-Aid Bonds of 1984 Account Assets $ 124 Cash and temporary investments Receivables Accrued interest $ 124 Total assets Fund Balance Fund balance Reserved for debt service $ 124 -52- State-Aid Bonds of 1988 Account $ 9,877 132 $ 10,009 $ 10,009 Totals 1992 1991 $ 10,001 $ 11,999 132 76 $ 10,133 $ 12,075 $ 10,133 $ 12,075 CTIY OF ANOOVER State-Aid Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1992 (with Cbmparative Actual Amounts for Year Ended December 31, 1991) Revenue Intergovernmental revenue State aids Other revenue Interest earned on investments Total revenue Expenditures Debt service Principal retirement Interest Other Total expenditures Excess (deficiency) of revenue over expenditl:1feS Fund bilance Beginning of year End of year --.... - ,- 1992 1991 Actual State-Aid State-Aid Bonds Bonds Over of 1984 of 1988 (Under) Budget Account Account Total Budget Actual $ 136,800 $ 64,645 $ 71,275 2.~8 71,513 64,645 136,800 100,000 50,000 36,800 14,001 1,300 646 138,100 64,647 $ (1,300) (2) 126 $ 124 50,000 22,800 653 73,453 (1,940) 11,949 $ 10,009 -53- $ 135,920 2.~8 136,158 100,000 36,801 1,299 138,100 (1,942) 12,075 $ 10,133 $ (880) $ 142,400 2.~8 862 (642) 143,262 100,000 1 43,900 (1) 1,297 145,197 $ (642) (1,935) 14,010 $ 12,075 -- ====;n.......-=== -- ~ C E D C E ! C C ~ ~ ~ c m c m c c ~ I I I I I I I I I I I I I I I I I I I CITY OF ANOOVER Tax Increment Bonds Debt Service Fund Balance Sheet As of December 31,1992 (with Comparative Totals as of December 31,1991) TIF Project 1-1 Account TIF Project 1-2 Account Totals 1992 1991 Assets Cash and temporary investments Receivables Accrued interest Delinquent taxes Delinquent special assessments Due from other governmental units Due from developer $ 794,096 $ 263,912 $ 1,058,008 $ 1,160,011 17,650 21,927 71,691 71,691 71,691 16,355 216,490 $ 865,787 $ 263,912 $ 1,129,699 $ 1,504,124 Total assets liabilities and Fund Balance liabilities Deferred revenue $ 71,691 $ $ 71,691 $ 310,108 Fund balance Reserved for debt service 1,058,008 1,194,016 794,096 263,912 Total liabilities and fund balance $ 865,787 $ 263,912 $ 1,129,699 $ 1,504,124 -54- CITY OF ANOOVER Tax Increment Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1992 (with Comparative Actual Amounts for Year Ended December 31, 1991) Budget TIP Project 1-1 Account 1992 Actual TIP Project 1-2 Account Revenue Tax increments Special assessments Intergovernmental revenue HACA and other tax credits Other revenue Interest earned on inveslments Sale ofland Miscellaneous Total revenue $ 508,500 $ $ 93,750 602,250 Expenditures Debt service Principal retirement Interest Other Total expenditures Excess (deficiency) of revenue over expenditures 40,000 40,000 95,213 95,212 750 796 135,963 136,008 466,287 (136,008) Other financing uses Opemting transfers (out) Geneml Fund Excess (deficiency) of revenue over expenditures 1md other financing uses $ 466,287 (136,008) Fund balance Beginning of year 794,096 $ 794,096 399,920 $ 263,912 End of year -55- -- ~ ~ --r=- ------.. ---1---- ~ D E E I E E C ~ t E E m E C t I ~ I I I I I 1991 I Over I (Under) Total Budget Actual I $ $ (508,500) $ 544,544 5,166 I 277 I (93,750) 68,614 55,627 25,867 I (602,250) 700,095 I 40,000 35,000 95,212 (1) 98,450 I 796 46 136,008 45 133,450 I (136,008) (602,295) 566,645 I (30,000) I (136,008) $ (602,295) 536,645 I 1,194,016 657,371 I $ 1,058,008 $ 1,194,016 I I -56- CITY OF ANOOVER Special Assessment Bonds Debt Service Fund Balance Sheet As of December 31, 1992 (with Comparative Totals as of December 31,1991) Improvement Bonds Series 1977A Account Improvement Bonds of 1978 Account Improvement Bonds of 1979 Account Assets Ca h and temporary investments R ivables ccrued interest linquent special assessments ferred special assessments e from other govern- mental units $ 701,143 15,352 498 236,672 428 $ 954,093 $ 89,182 $ 141,501 2,728 42,244 1,658 20,707 $ 186,473 $ 111,547 Total assets liabilities and Fund Balance ilities ccounts payable ccrued expenses e to other governmental units ferred revenue bitrage rebate Total liabilities $ $ $ 237,170 42,244 20,707 237,170 42,244 20,707 716,923 144,229 90,840 716,923 144,229 90,840 $ 954,093 $ 186,473 $ 111,547 d balance eserved for debt service ndesignated Total fund balance Total liabilities and fund balance -57- -.............- -.I I ~~~ >--- Improvement Bonds Series 1980C Account $ 11,168 233 $ 11,401 $ 11,401 11,401 $ 11,401 c ~ E ~ ; ~ E E E E E E E I ~ E I E E Improvement Improvement Improvement Improvement Bonds Series Bonds Series Bonds Series Bonds Series 1985A 1985B 1986A 1986B Account Account Account Account $ 199,208 $ 7,466 $ 1,201,494 $(332,575) 5,157 14,376 25,801 - - 917 3,378 — ' 39,664 9,911 27,086 78,544 $ 244,029 $ 32,670 $ 1,257,759 $ 254 031 ' $ _ $ _ $ 492 $ — 1,782 39,664 10,828 30,464 78,544 39,664 10,828 30,956 80,326 ' 204,365 21,842 1,226,803 - - — 334,357 204,365 21,842 1,226,803 33( 4,357) ' $ 244,029 $ 32,670 $ 1,257,759 $ 25( 4,031) (continued) -58- CITY OF ANDOVER Special Assessment Bonds Debt Service Fund Balance Sheet (continued) As of December 31,1992 (with Comparative Totals as of December 31,1991) Assets Ca h and temporary investments R ivables ccrued interest linquent special assessments ferred special assessments e from other govern- mental units Total assets liabilities and Fund Balance ilities ccounts payable ccrued expenses e to other governmentalllnits ferred revenue bitrage rebate Total liabilities d balance eserved for debt service ndesignated Total fund balance Total liabilities and fund balance -----:="":"'&7" - I -" I Refunding Bonds Series 1986C Account Improvement Bonds of 1989 Account Improvement Bonds Series 1990A Account Improvement Bonds Series 1990B Account $ 1,684,296 $ 84,466 $ 409,468 $ 278,804 35,533 2,760 17,141 4,954 42,369 34,059 15,873 149 866,748 330,370 534,237 291,210 1,623 13,387 149 646 $ 2,630,569 $ 465,042 $ 976,868 $ 575,763 $ $ $ 464 $ 909,117 364,429 550,110 291,359 3,890 553 909,117 364,429 554,464 291,912 1,721,452 100,613 422,404 283,851 1,721,452 100,613 422,404 283,851 $ 2,630,569 $ 465,042 $ 976,868 $ 575,763 -59- -r---=-- -----~~ c ~ ... E E E C E C E ~ t D t m ~ ~ E ~ ~ ---=- ~;;;;; I I I I Improvement 1991B Bonds of Water Sewer I G.O. Bonds 1992 Trunk Trunk Totals Account Account Account Account 1992 1991 I $ 1,267,775 $ 1,041,346 $ $ $ 6,784,742 $ 8,623,207 I 5,598 4,117 135,408 147,884 2,922 7,262 107,427 245,318 I 870,786 628,181 3,976,360 5,993,429 247 16,480 910,597 I $ 2,147,081 $ 1,681,153 $ $ $ 11,020,417 $ 15,920,435 I I $ $ $ $ $ 956 $ 9,677 1,782 2,893 26 I 873,708 635,443 4,083,787 7,133,114 4,443 11,137 873,708 635,443 4,090,%8 7,156,847 I 1,273,373 1,045,710 7,263,806 8,763,588 I (334,357) 1,273,373 1,045,710 6,929,449 8,763,588 I $ 2,147,081 $ 1,681,153 $ $ $ 11,020,417 $ 15,920,435 I I I I -60- CITY OF ANOOVER C Special Assessment Bonds Debt Service Fund D Sta,tement of Revenue, Expenditures, and ClIanges in Fund Balance Budget and Actual Year Fnded December 31,1992 E (with Comparative Totals for Year Fnded December 31, 1991) Improvement Improvement Improvement E Bonds Series Bonds of Bonds of 1977A 1978 1979 Budget Account Account Account E Re enue pecial assessments $ 1,667,570 $ 28,791 $ 15,205 $ 12,684 tergovemmental revenue E County reimbursements er revenue Interest earned on investments 487,900 34,448 6,026 3,399 Miscellaneous ! Total revenue 2,155,470 63,239 21,231 16,083 enditures C bt service Principal retirement 1,060,000 45,000 15,000 25,000 Interest 1,173,084 41,250 7,886 5,687 Arbitrage rebate E Other 9,040 99 400 639 Total expenditures 2,242,124 86,349 23,286 31,326 Excess (deficiency) of ; revenue over expenditur(~s (86,654) (23,110) (2,055) (15,243) financing sources (uses) 0 d proceeds 1,500,000 erating transfers in Debt Service Funds Capital Project Funds C erating transfers (out) Debt Service Funds Capital Project Funds Fnterprise Funds t Total other fmancing sources (uses) 1,500,000 Excess (deficiency) of ~ revenue and other financing sources over expenditures and other ~ financing uses $ 1,413,346 (23,110) (2,055) (15,243) balance ginning of year, as previoosly stated 740,033 146,284 106,083 ~ or period adjustment ginning of year, as restated 740,033 146,284 106,083 esidual equity transfers in E esidual equity transfers (out) $ 716,923 $ 144,229 $ 90,840 m -61- m --"-=-I _ _ -----.-- ----- -==-I=-- ----===----- ----::-::::~=- 1992 Actual Improvement Improvement Improvement Improvement Improvement Refunding Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series 1980C 1985A 1985B 1986A 1986B 1986C Account Account Account Account Account Account $ - $ 7,714 $ 84,347 $ 17,455 $ 15,112 $ 308,153 529 11,205 30,386 58,327 - 81,673 529 18,919 114,733 75,782 15,112 389,826 ' - 20,000 180,000 125,000 240,000 210,000 17,925 136,340 97,190 94,563 156 „380 646 773 726 640 11,088 38,571 317,113 222,916 335,203 377,468 t 529 (19,652) (202,380) (147,134) (320,091) 12,358 529 (19,652) (202,380) (147,134) (320,091) 12,358 10,872 323,223 1,270,351 1,374,432 41,411 1,901,139 (99,206) (1,046,129) (495) 5( 5,677) (192,045) 10,872 224,017 224,222 1,373,937 (14,266) 1,709,094 $ 11,401 $ 204,365 $ 21,842 $ 1,226,803 $ 331 4 157) $ 1,721,452 (continued) ' -62- C CITY OF ANDOVER, MINNESarA Special Assessment Bonds Debt Service Fund C Statement of Revenue, Expenditures, and Olanges in Fund Balance (continued) Budget and Actual Year Ended December 31, 1992 E (with Comparative Totals for Year Ended December 31,1991) 1992 Actual E Improvement Improvement Improvement Bonds Bonds Series Bonds Series 1991B 1989 1990A 1990B G.O. Bonds D Account Account Account Account Re enue pecial assessments $ 229~166 $ 468,093 $ 65,658 $ 791,404 tergovernmental revenue S County reimbursements 60,054 265,437 568,875 er revenue Interest earned on investments 5,339 43,419 12,476 42,969 Miscellaneous 3,108 rl Total revenue 234,705 571,566 346,679 1,403,248 ill enditures D bt service Principal retirement 200,000 Interest 190,000 156,250 91.450 183,600 Arbitrage rebate 6,132 246 D Other 765 34,488 Total expenditures 390,765 190,738 97,582 183,846 Excess (deficiency) of ~ revenue over expenditums (156,060) 380,828 249,097 1,219,402 Oth r financing sources (uses) ~ d proceeds erating transfers in Debt Service Funds Capital Project Funds C erating transfers (out) Debt Service Funds Capital Project Funds ~ Entelprise Funds Total other financing sources (uses) Excess (deficiency) of E revenue and other financing sources over expenditures and other ~ financing uses (156,060) 380,828 249,097 1,219,402 balance ginning of year, as previwsly :stated 293,831 976,940 53,373 204,466 ~ or period adjustment (37,158) (935,364) (18,619) (150,495) ginning of year, as restated 256,673 41,576 34,754 53,971 sidual equity transfers in E esidual equity transfers (out) $ 100,613 $ 422,404 $ 283,851 $ 1,273,373 ~ -63- ~ --____L -~ ~_=_=t-~ --------- I I I 1991 I Improvement Bonds of Water Sewer Over I 1992 Trunk Trunk (Under) Account Account Account Total Budget Actual $ 958,064 $ $ $ 3,002,046 $ 1,334,476 $ 2,382,352 I 894,366 894,366 30,182 360~178 (127,522) 666,807 I 3,108 3,108 24,573 988,246 4,259,898 2,104,428 3,073,732 I 1,060,000 6,891,000 1,178,521 5,437 1,502,881 I 6,378 6,378 234,916 50,264 41,224 88,355 2,295,163 53,039 8,717,152 I 988,246 1,964,735 2,051,389 (5,643,420) I 50,400 50,400 (1,449,600) 3,374,500 421,411 I 7,064 7,064 7,064 91,913 (421,411) I (75,918) (30,500) 57,464 57,464 (1,442,536) 3,359,995 I I 1,045,710 2,022,199 $ 608,853 (2,283,425) I 858,256 462,894 8,763,588 9,724,601 (858,256) (462,894) (3,856,338) 4,907 ,250 9,724,601 I 1,394,046 (71,634) $ 1,045,710 $ $ $ 6,929,449 $ 8,763,588 I I -64- CITY OF ANDOVER Capital Project Funds Combining Balance Sheet As of December 31, 1992 (with Comparative Totals as of December 31, 1991) 1990 Equipment Fire Station Constmction State- Aid 1992 Equipment Assets Ca h and temporary investments (deficit) Re ivables ccounts ccrued interest linquent taxes elinquent special assessments ferred special assessments ue from other governmental units ue from developer $ 139 $ (211,642) (801) $ 161,373 $ 801 2,260 6,246 146 14,641 26,696 $ $ 163,633 $ 139 $ (163,913) Total assets iabilities and Fund Balance (Deficit) ilities ccounts payable ntracts payable ccrued expenses ue to other funds ue to other governmental units eferred revenue Total liabilities $ $ 24,310 $ Tax Increment $ 586,390 26,156 7,645 9,318 205,314 $ 834,823 $ 1,200 $ 1,465 35,805 5,112 41,484 212,958 83,601 214,423 139,323 139 359,849 620,400 (607,363) 139,323 139 (247,514) 620,400 $ $ 163,633 $ 139 $ (163,913) $ 834,823 24,310 d balance (deficit) nreserved Designated for capital projoects Designated for equipment Undesignated Total fund balance (deficit) Total liabilities and fund balance (deficit) -65- __-=--IL - - >-- -~-~~--=-= - ~ C E E C ~ D G E ~ C C S I m C m ; m Permanent Kelsey Special Improvement Round Lake Totals Park Assessment Revolving Park 1992 1991 $ 111,773 $ 5,707,817 $ 876,194 $ 40,000 $ 7,271,243 $ 387,260 - 13,591 1,569 - 15,961 2,918 1,611 79,752 18,279 _ 134,304 39,250 7,645 - 72,626 11,405 - 84,177 13,062 ' - 911,682 232,388 - 1,158,711 720,818 3,100 599 39,713 205,314 287,087 $ 113,384 $ 6,788,568 $ 1,140,434 $ 40,000 $ 8,917,068 1 J, 450,395 $ - $ 192,295 $ 987 $ - $ 220,257 $ 104,091 ' = 129,453 - _ 165,258 61,000 15,728 20,840 30,513 20,000 20,000 - - - 50 1 _ 984,307 243,793 - 1,482,542 1,020,698 1,321,783 244,780 20,000 1,908,897 1,216,352 ' 113,384 5,853,016 716,771 20,000 7,822,882 2,145,265 ' = 178,883 _ 178,883 171,837 (386,231) (993,594) (2,083,059) 113,384 5,466,785 895,654 20,000 7,008,171 234,043 $ 113,384 $ 6,788,568 $ 1,140,434 $ 40,000 $ 8,917,068 1-11,4 , 395 ' -66- I I I Permanent Kelsey I Special Improvement Round Lake Totals Park Assessment Revolving Park 1992 1991 I $ $ $ $ $ 630,706 $ 1,077,426 148,107 1,233,325 604,584 293,406 232,719 I 3,873 194,007 42,681 322,727 240,952 38,228 I 113,153 113,153 14,250 10,697 2,918 44,826 329 117,026 1,282,130 193,706 2,676,371 1,092,834 I 27,765 3,863,687 107,865 4,687,511 4,411,985 33,359 47,998 115,165 I 27,765 3,897,046 107,865 4,735,509 4,527,150 I 89,261 (2,614,916) 85,841 (2,059,138) (3,434,316) 4,728,000 4,908,000 2,712,000 I 1,548,509 1,548,509 234,234 I (30,000) (8,202) (7,064) (7,064) (91,913) (1,479,787) (68,722) (1,548,509) (158,316) I (30,500) (30,500) (20,460) 4,759,158 (68,722) 4,840,436 2,667,343 I 89,261 2,144,242 17,119 2,781,298 (766,973) I 24,123 (743,522) 878,535 234,043 2,323,428 I 4,066,065 3,972,830 24,123 3,322,543 878,535 4,206,873 2,323,428 20,000 20,000 89,331 (1,411,743) I $ 113,384 $ 5,466,785 $ 895,654 $ 20,000 $ 7,008,171 $ 234,043 I I -68- CITY OF ANDOVER m State-Aid Capital Project Fund m Balance Sheet III As of December 31, 1992 (with Comparative Totals as of December 31, 1991) E ~ State-Aid State-Aid Revolving Project Totals C Account Account 1992 1991 Assets C Cash and temporary investments (deficit) $ (566,292) $ 354,650 $ (211,642) $ 57,472 Receivables ~ Accrued interest 6,246 6,246 5,358 Delinquent special assessments 146 146 Deferred special assessments 14,641 14,641 16,260 E Due from other governmental units 26,696 26,696 274,575 Total assets $ (524,809) $ 360,896 $ (163,913) $ 353,665 E liabilities and Fund Balance (Deficit) liabilities t Accounts payable $ 153 $ 1,047 $ 1,200 $ 12,785 Contracts payable 35,805 35,805 20,812 .. Accrued expenses 5,112 5,112 2,928 L Deferred revenue 41,484 41,484 290,835 Total liabilities 82,554 1,047 83,601 327,360 C Fund balance (deficit) Umeserved Designated for capital projects 359,849 359,849 300,475 ~ Undesignated (607,363) (607,363) (274,170) Total fund balance (deficit) (607,363) 359,849 (247,514) 26,305 Total liabilities and ~ fund balance (deficit) $ (524,809) $ 360,896 $ (163,913) $ 353,665 ~ ~ E ~ -69- ~ -........ . 1- ~~ .,..- -- --- ----- -----...--;;;: ; - I CITY OF ANOOVER I State-Aid Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance I Year Ended December 31, 1992 (with Comparative Totals for Year Ended December 31,1991) I State-Aid State-Aid I Revolving Project Totals Account Account 1992 1991 I Revenue Special assessments $ 2,614 $ 5,178 $ 7,792 $ 17,592 Intergovernmental revenue I State aid 234,237 58,580 292,817 232,719 Other revenue Interest earned on investments 14,139 14,139 33,120 I Total revenue 236,851 77,897 314,748 283,431 Expenditures I Capital projects Capital outlay 555,416 14,628 570,044 474,123 Interest 14,628 14,628 13,987 I Total expenditures 570,044 14,628 584,672 488,110 Excess (deficiency) of I revenue over expenditures (333,193) 63,269 (269,924) (204,679) Other financing sources (uses) I Operating transfers in Capital Project Funds 158,316 Operating transfers (out) I Capital Project Funds (158,316) Administrative Trust Fund (2,700) Special Revenue Funds (5,127) I Total other financing sources (uses) (7,827) Excess (deficiency) of revenue and I other financing sources over expen- ditures and other financing uses (333,193) 63,269 (269,924) (212,506) I Fund balance (deficit) Beginning of year, as previously stated (274,170) 300,475 26,305 238,811 Prior period adjustment (3,895) (3,895) Beginning of year, as restated (274,170) 296,580 22,410 238,811 I Residual equity transfers in 17,697 Residual equity transfers (out) (17,697) I End of year $ (607,363) $ 359,849 $ (247,514) $ 26,305 I -70- CITY OF ANDOVER E Tax Increment Capital Project Fund C Balance Sheet As of December 31,1992 {with Comparative Totals as of December 31,1991) E II TIP TIP Ii Project Project 1-1 1-2 Totals ~ Account Account 1992 1991 Assets C Cash and temporary investments $ 316,485 $ 269,905 $ 586,390 $ 6,293 Receivables ~ Accrued interest 18,110 8,046 26,156 450 Delinquent taxes 7,645 7,645 Due from other governments 9,318 9,318 ~ Due from developer 205,314 205,314 Total assets $ 351,558 $ 483,265 $ 834,823 $ 6,743 ~ liabilities and FWld Balance liabilities C Accounts payable $ 1,465 $ $ 1,465 $ Accrued expenses 156 Deferred revenue 7,644 205,314 212,958 C Due to other governmental units 50 Total liabilities 9,109 205,314 214,423 206 E Fund balance (deficit) Unreserved Designated for capital projects 342,449 277,951 620,400 26,317 C Undesignated (19,780) Total fund balance 342,449 277,951 620,400 6,537 ~ Total liabilities and ~ fund balance $ 351,558 $ 483,265 $ 834,823 $ 6,743 E ~ ~ ~ -71- ~ .--......... '-- ---- I CITY OF ANOOVER I Tax Increment Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance I Year Ended December 31, 1992 (with Comparative Totals for Year Ended December 31, 1991) I TIP TIP I Project Project 1-1 1-2 Totals Account Account 1992 1991 I Revenue Tax increments $ 412,500 $ 218,206 $ 630,706 $ I Intergovernmental revenue State aid 589 589 Other revenue Interest earned on investments 43,397 18,342 61,739 1,862 I Sale of property 38,228 38,228 Miscellaneous 21,887 21,887 Total revenue 494,714 258,435 753,149 1,862 I Expenditures Capital projects I Capital outlay 20,092 801 20,893 16,664 Excess (deficiency) of I revenue over expenditures 474,622 257,634 732,256 (14,802) Other financing uses I Operating transfers (out) General Fund (24,000) (6,000) (30,000) I Excess (deficiency) of revenue over expenditures and other financing uses 450,622 251,634 702,256 (14,802) I Fund balance (deficit) Beginning of year, as previously stated (19,780) 26,317 6,537 21,339 I Prior period adjustment (88,393) (88,393) Beginning of year, as restated (108,173) 26,317 (81,856) 21,339 I End of year $ 342,449 $ 277,951 $ 620,400 $ 6,537 I . I - I , -72- , CITY OF ANDOVER Special Assessment Capital Project Fund Balance Sheet As of December 31, 1992 (with Comparative Totals as of December 31, 1991) Water Trunk Account Sewer Trunk Account Assets Cash and temporary investments (deficit) Receivables Accounts Accrued interest Delinquent special assessments Deferred special assessments Due from other govennnental units $ 2,524,749 $ 1,026,294 30,496 15,161 72,456 170 885,412 9,392 3,083 17 $ 3,516,196 $ 1,051,034 Total assets liabilities and Fund Balance (Deficit) liabilities Accounts payable Contracts payable Accrued expenses Deferred revenue Total liabilities $ 33,043 2,629 957,868 993,540 $ 1,999 6,276 9,561 17,836 Fund balance (deficit) Unreserved Designated for capitil projects Undesignated Total fund balanc:e (deficit) 2,522,656 1,033,198 1,033,198 2,522,656 Total liabilities and fund balance (deficit) $ 3,516,196 $ 1,051,034 -73- ---=- --1 - Improvement Bonds Series 1989A Construction Account $ 1,112,635 22,498 $ 1,135,133 $ 1,135,133 1,135,133 $ 1,135,133 -.;:::::::--~_O=-_ c c C I: [ C C D ~ ~ [ [ C ~ ~ ~ fC C m I I I I Improvement I Bonds Series 1992 Unfinanced Construction Improvement Totals I Account Account 1992 1991 I $ 1,313,214 $ (269,075) $ 5,707,817 $ (648,801) 13,591 13,591 I 11,597 79,752 18,613 72,626 752 16,878 911,682 432,039 I 3,100 376 $ 1,338,402 $ (252,197) $ 6,788,568 $ (197,021 ) I I $ 55,825 $ 101,428 $ 192,295 $ 46,093 120,548 129,453 40,188 I 15,728 15,728 27,429 16,878 984,307 432,791 176,373 134,034 1,321,783 546,501 I I 1,162,029 5,853,016 1,087,652 (386,231 ) (386,231 ) (1,831,174) 1,162,029 (386,231 ) 5,466,785 (743,522) I $ 1,338,402 $ (252,197) $ 6,788,568 $ (197,021) I - I - i I I -74- CI1Y OF ANDOVER m Special Assessment Capital Project Fund ! Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1992 (with Comparative Totals for Year Ended December 31, 1991) ~ Improvement I Bonds Water Sewer Series 1989A Trunk Trunk Construction I Account Account Account Revenue Special assessments $ 153,584 $ 3,093 $ Other revenue I Interest earned on investments 75,121 35,823 51,682 Miscellaneous 8,560 2,137 Total revenue 237,265 41,053 51,682 C Expenditures Capital projects ~ Capital outlay 404,281 171,382 4,201 Interest Total expenditures 404,281 171,382 4,201 Excess (deficiency) of E revenue over expenditures (167,016) (130,329) 47,481 Other financing sources (uses) E Bond proceeds Operating transfers in Capital Project Funds a Operating transfers (out) Special Revenue Funds Debt Service Funds ; Capital Project Funds Enterprise Funds (30,500) Administrative Trust Fund Total other financing E sources (uses) (30,500) Excess (deficiency) of revenue E and other financing sources over expenditures :md other financing llS(lS (167,016) (160,829) 47,481 Fund balance (deficit) m Beginning of year, as previously stated 1,087,652 Prior period adjustment 2,689,672 1,194,027 m Beginning of year, as restated 2,689,672 1,194,027 1,087,652 Residual equity transfers (out) End of year $ 2,522,656 $ 1,033,198 $ 1,135,133 I e -75- C ------~ -I- t ,~-- --.:~~; I I I I Improvement Bonds Series 1992 Unfinanced I Construction Improvement Totals Account Account 1992 1991 I $ $ 920,749 $ 1,077,426 $ 501,135 31,381 194,007 142,554 I 10,697 31,381 920,749 1,282,130 643,689 I 2,110,501 1,173,322 3,863,687 1,320,495 33,359 33,359 91,961 I 2,110,501 1,206,681 3,897,046 1,412,456 (2,079,120) (285,932) (2,614,916) (768,767) I 4,728,000 4,728,000 I 1,548,509 1,548,509 75,918 (3,075) I (7,064) (7,064) (91,913) (1,479,787) (1,479,787) (30,500) I (17,760) 3,241,149 1,548,509 4,759,158 (36,830) I I 1,162,029 1,262,577 2,144,242 (805,597) (1,831,174) (743,522) 1,456,121 I 182,366 4,066,065 (1,648,808) 3,322,543 1,456,121 (1,394,046) I $ 1,162,029 $ (386,231) $ . 5,466,785 $ (743,522) - . I ~ - I ~ -76- ~ - CTIY OF ANOOVER I Enterprise Funds E Combining Balance Sheet As of December 31, 1992 (with Comparative Totals as of December 31,1991) E Totals I Water Sewer 1992 1991 Assets I ent assets m Cash and temporary investments $ 294,665 $ 159,573 $ 454,238 $ 413,043 eceivables Accounts 75,131 123,073 198,204 163,198 D Accrued interest 6,685 2,363 9,048 6,929 Delinquent special assessments 2,387 2,387 2,585 Deferred special assessments 28,640 28,640 17,163 Due from other governmental units 11,225 11,225 9,316 ventory 5,892 5,892 7,327 Total current assets 382,373 327,261 709,634 619,561 I Pr perty and equipment umiture and equipment 247,493 38,103 285,596 89,466 chinery 561,365 561,365 561,365 ; llection and distribution systems 6,898,451 9,959,037 16,857,488 16,429,891 7,707,309 9,997,140 17,704,449 17,080,722 ss accumulated depreciatilon (960,913) (1,811,218) (2,772,131) (2,379,970) ~ Net property and equipment 6,746,396 8,185,922 14,932,318 14,700,752 Total assets $ 7,128,769 $ 8,513,183 $ 15,641,952 $ 15,320,313 I liabilities and Fund Equity ent liabilities I ccounts payable $ 28,631 $ 5,101 $ 33,732 $ 7,000 ccrued expenses 6,721 5,896 12,617 14,270 E e to other governmental units 357 Total current liabilities 35,352 10,997 46,349 21,627 d equity I ntributed capital 6,668,959 8,157,888 14,826,847 14,637,378 etained earnings m Designated for equipment 33,640 Undesignated 424,458 344,298 768,756 627,668 I Total fund equity 7,093,417 8,502,186 15,595,603 15,298,686 I I" Total liabilities and ftmd equity $ 7,128,769 $ 8,513,183 $ 15,641,952 $ 15,320,313 ' ~: I: I' E -77- I ~: I c----=--- f---- - ----~ I CIlY OF ANDOVER I Enterprise Funds Combining Statement of Revenue, Expenses, and Changes in Retained Earnings Year Ended December 31,1992 I (with Comparative Totals for Year Ended December 31,1991) I Totals Water Sewer 1992 1991 Operating revenue I User charges $ 274,893 $ 384,373 $ 659,266 $ 557,021 Meters 11,199 11,199 29,473 Permit fees 20,700 20,700 11 ,400 I Penalties 5,955 8,410 14,365 14,322 Other 3,172 36,065 39,237 6,366 Total operating revenue 315,919 428,848 744,767 618,582 I Operating expenses Personal services 105,681 35,825 141,506 119,003 Supplies 28,243 5,181 33,424 29,163 I Meters 1,435 1,435 21,930 Other services and charges 60,675 11,000 71,675 44,510 Disposal charges 248,244 248,244 223,752 I Total operating expenses 196,034 300,250 496,284 438,358 Operating income before depreciation 119,885 128,598 248,483 180,224 I Depreciation 177,604 199,450 377,054 348,614 I Operating loss (57,719) (70,852) (128,571) (168,390) Other income Interest income 15,809 5,794 21,603 27,279 I Loss before operating transfers (41,910) (65,058) (106,968) (141,111) I Operating transfers in Debt Service Funds 30,500 30,500 30,500 Operating transfers (out) I Debt Service Funds (37,630) (37,630) (37,630) Total operating transfers (7,130) (7,130) (7,130) Net loss (41,910) (72,188) ( 114,098) (148,241) -I Add credit for depreciation on contributed assets 169,152 198,006 367,158 339,155 I Income closed to retained earnings 127,242 125,818 253,060 190,914 Retained earnings I Beginning of year, as previously stated 432,828 228,480 661,308 470,394 - Prior period adjustment (115,612) (115,612) Beginning of year, as restated 317,216 228,480 545,696 470,394 - I Residual equity transfers (out) (20,000) (10,000) (30,000) - , ~ End of year $ 424,458 $ 344,298 $ 768,756 $ 661,308 - I -78- ~ - l OTY OF ANDOVER Enterprise Funds Combining Statement of Cash Flows Year Ended December31, 1992 (with Comparative Totals for Year Ended December 31, 1991) I I I I I I I I I I I I I I I I I I :1 CITY OF ANDOVER Water Fund Comparative Balance Sheet As of December 31,1992 and 1991 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 -80- 1992 1991 $ 294,665 $ 329,565 75,131 54,341 6,685 5,511 5,892 7,327 382,373 396,744 247,493 69,386 561,365 561,365 6,898,451 6,588,334 7,707,309 7,219,085 (960,913) (768,202) 6,746,396 6,450,883 $ 7,128,769 $ 6,847,627 $ 28,631 $ 6,894 6,721 8,583 357 35,352 15,834 6,668,959 6,398,965 16,820 424,458 416,008 7,093,417 6,831,793 $ 7,128,769 $ 6,847,627 CITY OF ANOOVER C Water Fund D Statement of Revenue, Expenses, and Changes in Retained Earnings Years Fnded December 31, 1992 and 1991 C 1992 1991 ~ Amount Percent Amount Percent Operating revenue ~ User charges $ 274,893 87.0% $ 205,848 81.3 % Meters 11,199 3.5 29,473 11.6 Permit fees 20,700 6.6 11 ,400 4.5 ~ Penalties 5,955 1.9 5,239 2.1 Other 3,172 1.0 1,273 0.5 Total operating revenue 315,919 100.0 253,233 100.0 D Operating expenses Personal services 105,681 33.5 79,700 31.5 D Supplies 28,243 8.9 20,999 8.3 Meters 1,435 0.5 21,930 8.7 Other services and charges 60,675 19.2 26,766 10.5 D Total operating expenses 196,034 62.1 149,395 59.0 Operating income E before depreciation 119,885 37.9 103,838 41.0 Depreciation 177,604 56.2 153,175 60.5 Operating loss (57,719) (18.3) (49,337) (19.5) ~ Other income m Interest income 15,809 5.0 22,109 8.7 Net loss (41,910) 03.3)% (27,228) 00.8)% m Add credit for depreciation on contributed assets 169,152 145,562 Income closed to retained earnings 127,242 118,334 ~ Retained earnings m Beginning of year, as previously stated 432,828 314,494 Prior period adjustment (115,612) Beginning of year, as restated 317,216 314,494 m Residual equity transfer (out) (20,000) Fndofyear $ 424,458 $ 432,828 m m -81- m ----=--0. - 1- ----- - ~--- ;...-- -------- I CITY OF ANOOVER I Water Fund Statement of Cash Flows I Years Ended December 31, 1992 and 1991 I 1992 1991 I Cash flows from operating activities Operating loss $ (57,719) $ (49,337) Adjustments to reconcile operating loss to net I cash provided by operating activities Prior period adjustment (115,612) Depreciation 177,604 153,175 I Change in assets and liabilities Receivables Accounts (20,790) (13,248) Inventory 1,435 (1,942) I Accounts payable 21,737 3,644 Accrued expenses (1,862) 2,961 Due to other governmental units (357) 80 I Net cash provided by operating activities 4,436 95,333 Cash flows from capital and related financing activities I Acquisition of capital assets (33,971) (12,260) Cash flows from investing activities I Interest received 14,635 19,487 Cash flows from noncapital financing activities I Residual equity transfer to Internal Service Fund (20,000) Net increase (decrease) in cash and temporary investments (34,900) 102,560 I Cash and temporary investments Beginning of year 329,565 227,005 I End of year $ 294,665 $ 329,565 I Supplemental schedule of noncash investing, capital, and financing activities Assets contributed by other funds $ 349,752 $ 1,371,993 I Prior period adjustment Assets contributed by customers $ 104,501 $ I Accumulated depreciation on contributed assets (15,107) Net prior period adjustment $ 89,394 $ I I -82- - CITY OF ANOOVFR C Sewer Fund E Comparative Balance Sheet As of December 31,1992 and 1991 C 1992 1991 I Assets Current assets E Cash and temporary investments $ 159,573 $ 83,478 Receivables E Accounts 123,073 108,857 Accrued interest 2,363 1,418 Delinquent special assessments 2,387 2,585 ~ Deferred special assessments 28,640 17,163 Due from other governmental units 11 ,225 9,316 Total current assets 327,261 222,817 D Property and equipment Furniture and equipment 38,103 20,080 E Collection system 9,959,037 9,841,557 9,997,140 9,861,637 Less accumulated depredation (1,811,218) (1,611,768) m Net property and equipment 8,185,922 8,249,869 Total assets $ 8,513,183 $ 8,472,686 liabilities and Fund Equity E Current liabilities ~ Accounts payable $ 5,101 $ 106 Accrued expenses 5,896 5,687 Total current liabilities 10,997 5,793 E Fund equity Contributed capital 8,157,888 8,238,413 E Retained earnings Designated for equipment 16,820 Undesignated 344,298 211,660 E Total fund equity 8,502,186 8,466,893 Total liabilities and fund equity $ 8,513,183 $ 8,472,686 E E E -83- m -- t=-_I---=-- ~ ~~- I CITY OF ANDOVPR I Sewer Fund Statement of Revenue, Expenses, and Changes in Retained Earnings I Years Ended December 31,1992 and 1991 1992 1991 I Amount Percent Amount Percent I Operating revenue User charges $ 384,373 89.6 % $ 351,173 96.1 % Penalties 8,410 2.0 9,083 2.5 Other 36,065 8.4 5,093 1.4 I Total operating revenue 428,848 100.0 365,349 100.0 Operating expenses I Personal services 35,825 8.3 39,303 10.8 Supplies 5,181 1.2 8,164 2.2 Other services and charges 11,000 2.6 17,744 4.8 I Disposal charges 248,244 57.9 223,752 61.2 Total operating expenses 300,250 70.0 288,963 79.0 I Operating income before depreciation 128,598 30.0 76,386 21.0 Depreciation 199,450 46.5 195,439 53.5 I Operating loss (70,852) (16.5) (119,053) (32.5) I Other income Interest income 5,794 1.3 5,170 1.4 . I Loss before operating transfers (65,058) (15.2)% (113,883) (31.1)% Operating transfers in Debt Service Funds 30,500 30,500 I Operating transfers (out) Debt Service Funds (37,630) (37,630) I Total operating transfers (7,130) (7,130) Net loss (72,188) (121,013) I Add credit for depreciation on contributed assets 198,006 193,593 Income closed to retained earnings 125,818 72,580 I Retained earnings Beginning of year 228,480 155,900 ~ I Residual equity transfer (out) (10,000) - End of year $ 344,298 $ 228,480 - I ~ , I -84- ;I ~ . CITY OF ANDOVER Sewer Fund Statement of Cash Flows Years FndedDecember 31, 1992 and 1991 Cash flows from operating activities Operating loss Adjustments to reconcille operating loss to net cash provided by operating activities Depreciation Change in assets and liabilities Receivables Accounts Delinquent special assessments Deferred special assessments Due from othl~r governmental units Accounts payable Accrued expenses Due to other gov,ernmental units Net cash provided by operating activities Cash flows from capital and related financing activities Acquisition of capital assets Cash flows from investing activities Interest received Cash flows from noncapital financing activities Operating transfer from Debt Service Funds Operating transfer to Dt:bt Service Funds Residual equity transfer to Internal Service Funds Net cash used by noncapital financing activities Net increase in cash and temporary investments Cash and temporary investments Beginning of year Fndofyear Supplemental schedule of noncash investing, capital, and financing activities 1992 1991 $ (70,852) $ (119,053) 199,450 195,439 (14,216) (12,242) 198 (320) (11,477) 3,059 (1,909) (8,686) 4,995 (13,592) 209 2,023 (16,141) 106,398 30,487 (18,022) (1,695) 4,849 3,752 30,500 30,500 (37,630) (37,630) (10,000) (17,130) (7,130) 76,095 25,414 83,478 58,064 $ 159,573 $ 83,478 Assets contributed by other funds $ 117.481 $ 323,834 -85- I........ i----=- -.........~'--~- m c C E e D D E ~ D D E ~ m i E I m m -----=or.;o:- I CITY OF ANOOVER I Trust and Agency Funds Combining Balance Sheet I As of December 31,1992 (with Comparative Totals as of December 31,1991) I Expendable Agency Trust Fund Fund Totals I Administrative Escrow Trust Fund Fund 1992 1991 I Assets Cash and temporary investments $ 167,128 $ 492,922 $ 660,050 $ 594,955 I Receivables Accrued interest 4,544 4,544 5,305 I Total assets $ 171,672 $ 492,922 $ 664,594 $ 600,260 liabilities and Fund Balance I liabilities Accounts payable $ $ 19,272 $ 19,272 $ 2,836 I Deposits payable 473,650 473,650 371,360 Total liabilities 492,922 492,922 374,196 I Fund balance Umeserved Undesignated 171,672 171,672 226,064 I Total liabilities and fund balance $ 171,672 $ 492,922 $ 664,594 $ 600,260 I I I I I - I - - I -86- CITY OF ANOOVER Expendable Trust Fund Administrative Trust Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Years Ended December 31, 1992 and 1991 1992 Revenue Other revenue Interest earned on investments $ 8,908 Other financing sources (uses) Operating transfers in Capital Project Funds Operating transfers (out) General Fund Total other financing sources (uses) (63,300) (63,300) Excess (deficiency) of revenue and other financing sources over expen- ditures and other financing uses (54,392) Fund balance Beginning of year 226,064 $ 171,672 End of year -87- ~.- ~-- '--- 1991 $ 20,824 20,460 (104,800) (84,340) (63,516) 289,580 $ 226,064 m D C E E C D D C D ~ ~ E ~ ~ m m m m I CITY OF ANOOVER I Agency Fund Escrow Fund I Statement of Changes in Assets and liabilities Year Ended December 31, 1992 I Balance Balance January 1 Additions Deductions December 31 I Assets I Cash and temporary investments $ 374,196 $ 375,240 $ 256,514 $ 492,922 liabilities I Accounts payable $ 2,836 $ 19,272 $ 2,836 $ 19,272 Deposits payable 371,360 355,968 253,678 473,650 I Total liabilities $ 374,196 $ 375,240 $ 256,514 $ 492,922 I I I I I I I I I I I -88- - , , -----' ~ -I-- ~-~~ m c ~ E ! E C D E I G ~ ~ ~ ~ ; E E m - -- I I I I I I I I I I I I I I I I ;1 ~ I I STATISTICAL SECTION (UNAUDITED) ~ ~ ~ m ~ ~ C E ; ; e E ~ E D ~ m E m; I ~ .~ -------JIIIII~_ .. -'---- __-=-- .,~ .........- - I-- ___ I I I I I I I I I I I I I I -I I -I ~I ~ I ~ I CITY OF ANDOVER General Fund Revenue by Source General Licenses Fiscal Property and Intergovernmental Charges for Fines and Other Year Tax Permits Revenue Services Forfeits Revenue Total 1988 $ 713,219 $ 236,555 $ 559,246 $ 31,404 $ 45,049 $ 84,680 $ 1,670,153 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 1991 1,017,774 230,298 640,318 82,604 31,750 71,290 2,074,034 1992 1,107,808 430,024 614,266 120,708 39,565 87,370 2,399,741 -89- CITY OF ANOOVER General Fund Expenditures by Function Fiscal General Public Public Year Government Safety Works 1988 $ 521,775 $ 496,710 $ 333,978 1989 645,521 705,415 296,275 1990 593,778 754,914 307,046 1991 579,797 805,393 374,138 1992 672,936 908,312 442,176 -90- ="!IIiiiII..;;;i; ~ '- - I I Parks and E Sanitation Recreation $ 12,030 $ 240,574 E 18,658 218,571 ! 29,168 261,449 14,831 245,097 E 28,976 204,267 E E E I E I E I I E I E m - - I I I Economic I Recycling Development Unallocated Total $ $ $ 136,209 $ 1,741,276 I 20,112 97,797 2,002,349 39,567 14,289 129,589 2,129,800 I 46,771 17,447 72,521 2,155,995 I 39,622 17,659 77,060 2,391,008 I I I I I I I ;1 ;1 il ~I - ~ I -91- CITY OF ANDOVER ~ Tax Levies and Collections E Percentage ~ Collection Percentage Collection of Total of Current of Levy of Prior Total Collections I Year Total Levy Year's Levy Collected Years' Levy Collections to Levy 1983 $ 570,009 $ 548,667 96.26 % $ 18,286 $ 566,953 99.46 % E 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 ; 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 E 1991 1,079,510 1,054,361 97.67 21,936 1,076,297 99.70 1992 1,482,416 1,440,883 97.20 22,028 1,462,911 98.68 Special Assessment Levies and Collections D Percentage E Collection Percentage Collection of Total of Current of Levy of Prior Total Collections Year Total Levy Year'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 1985 725,828 660,741 91.03 70,394 731,135 100.73 D 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 1,097,880 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 G 1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34 C ; E E E -92- m .:...........L- -~~~- f.. ------- --~~ I I I I I I I I I I I I I I I I I I - I , ; - CITY OF ANOOVER Computation of Legal Debt Margin December 31, 1992 Market value of taxable property $ 502,410,300 Debt limit (2.00% of market value) $ 10,048,206 Amount of debt applicable to debt limit Total bonded debt $ 25,690,000 Less Bonded debt not repayable solely from tax levies Special Assessment Improvement Bonds 22,055,000 Tax Increment Bonds 975,000 State-Aid Street Bonds 410,000 Net debt applicable to debt limit 2,250,000 Legal debt margin $ 7,798,206 -93- CITY OF ANOOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-1 Year Ended December 31, 1992 Accounted Original for in Current Amount Budget Prior Years Year Remaining Sources of funds Tax increments $ 8,064,943 $ 821,839 $ 412,500 $ 6,830,604 Special assessments 5,166 589 (5,755) State credits 57,266 (57,266) Bond proceeds 4,715,000 205,000 4,510,000 Land sales 162,128 38,228 (200,356) Interest 97,470 92,187 43,397 (38,114) Total sources of funds 12,877,413 1,343,586 494,714 11,039,113 Uses of funds Capital outlay 5,200,000 269,460 108,485 4,822,055 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 13,914,686 545,270 108,485 13,260,931 District balance (deficit) (1,037,273) 798,316 386,229 (2,221,818) Transfers (to) other funds (24,000) (24,000) 48,000 Remaining funds (deficit) $ (1,037,273) $ 774,316 $ 362,229 $ (2,173,818) 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 )[ncrement Bonds Series 1987B $ 205,000 Outstanding Bonds at lX:cember 31, 1992 $ -94- :-------= ---- ~ e - - '- ~ ~ I ~ I I E E E E E D ~ ~ ~ E E I m m I I I I I I I I I I I I I I I I I I I CITY OF ANOOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-2 Year Ended December 31, 1992 Accounted Original for in Current Amount Budget Prior Years Year Remaining Sources of funds Tax increments $ 2,200,361 $ 579,440 $ 218,206 $ 1,402,715 State credits 277 (277) Bond proceeds . 1,004,500 1,044,126 (39,626) Land sales 7,959 (7,959) Interest 4,500 86,324 18,342 (100,166) Miscellaneous 49,744 21,887 (71,631) Total sources of funds 3,209,361 1,767,870 258,435 1,183,056 Uses of funds Capital outlay 1,010,375 817,224 801 192,350 Administrative costs and other 95,905 29,822 66,083 Debt service Principal 1,025,000 50,000 40,000 935,000 Interest and other costs 1,029,018 432,587 96,008 500,423 Total uses of funds 3,160,298 1,329,633 136,809 1,693,856 District balance (deficit) 49,063 438,237 121,626 (510,800) Transfers to other funds (12,000) (6,000) 18,000 Remaining funds (deficit) $ 49,063 $ 426,237 $ 115,626 $ (492,800) SUPPlEMENTAL INFORMATION Name of District Tax Increment District - Development District No. 1-2 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 1987A $ 1,065,000 $ 975,000 Outstanding Bonds at December 31,1992 -95- I I I I I I I I I I I I I I I I ~I I I SINGLE AUDIT AND OTHER REOUIRED REPORTS ~ ~ I I I I I ~ ; ~ c c C E E I I a c 0_ -~~-i~------- -- -- -~_ r- -. I I I PRINCIPALS KENNETH W. MALLOY. CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH. CPA I I I I I I 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, 1992, and have issued our report thereon dated April 7, 1993. 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. I I I I We conducted our audit in accordance with generally accepted auditing standards and Government Auditing 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. I 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. I -I -I fI/*~ aJ.~~ April 7, 1993 ~ I ~ I -==EFrTIF=IEI:> P.......~L-.c:; .....c::-c::<C>..................-............-s. 410 PARK NATIONAL BANK BUILDING 5353 WA'fZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -96- 1 -........... -=~ 1_ I I I I I I I ~ I I I a & I I I I S C _. I I I I I I I I I I I I I I I I I I i I aIY OF ANOOVER Schedule of Federal Financial Assistance Year Ended December 31, 1992 Federal GDA Federal GrantorlPass-Through Grantor/PrOgram Title Number U.S.l)epartment of Housin2 and Urban Development Federal Grant Amount Current Year Activity Revenue State and Federal Local Expenditures Passed Through Anoka County Community Development Block Grant 14.218 $ 142,669 $ 35,847 $ 8,498 $ 44,345 Note 1: Federal grant amount includes any carryover from 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. -97- I I I I I I I I I I I I I I I I -I I ~ I ~&CO.IP.A. PRINCIPALS KENNETH w. MALLOY. CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF 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, as of and for the year ended December 31, 1992, and have issued our report thereon dated April 7, 1993. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing 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. In planning and performing our audit of the general purpose financial statements of the City of Andover for the year ended December 31, 1992, we considered its 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 judgments 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. Because of inherent limitations in any internal control structure, errors or irregularities 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) C:;EFl'"""TIFIE:1:> PLlI3L.-I~ .....c:::=C;:CJoLlr-..ll-r.............-.-= 4'0 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOUL.EVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -98- I I I I I I I I I I I I I I I I - I ~ I 9 :: I ~ =fi 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. 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 judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. 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 the specific 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 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 aU 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. 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 for the year ended December 31, 1992, and this report does not affect our reports thereon dated April 7, 1993. We also noted other matters involving the internal control structure and its operation that we have reported to the management of the City of Andover in a separate report dated April 7, 1993. This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. /f4:~ ~~A April 7, 1993 -99- I I I I I I I I I I I I I I I - I - - I - - ~ I g i I '1 ~MALLOV KARNCWSKI RADOSEVICH &CD.,P.A. PRINCIPALS KENNETH w. MALLOY, CPA THOMAS A. KARNOWSKI. CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 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, 1992, and have issued our report thereon dated April 7, 1993. 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 and about whether the City complied with laws and regulations, noncompliance with which would be material to a federal financial assistance program. In planning and performing our audit for the year ended December 31, 1992, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-l28. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 7, 1993. (continued) C:~~E::3C1 _C::::OC:C:::>IJ~--r_.......-'-,g 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -100- I I I I I I I I I I I I I I I I I '" I D I , The management of the City of Andover is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments 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, 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. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Requirements o Political activity Civil rights Cash management Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements o o o o o o Specific Requirements o Types of services Reporting Special requirements o o Claims for Advances and Reimbursements 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, 1992, the City had no major federal financial assistance programs and expended 100% of its total federal financial assistance under the following nonmajor federal financial assistance program: Community Development Block Grant (CDBG). (continued) -101- I I I I I I I I I I I I I I I I -I ~1 I . ~ ~ I !l ; 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 and reimbursements that are applicable to the aforementioned nonmajor program. 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 judgment, could adversely affect the City's ability 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 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, 1992, and this report does not affect our reports thereon dated April 7, 1993. We also noted other matters involving the internal control structure and its operation that we have reported to the management of the City of Andover in a separate report dated April 7, 1993. This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. d~~~'~4: April 7, 1993 -102- I I I I I I I I I I I I I I I I ~I ~ I U I ~ "1 , 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, as of and for the year ended December 31, 1992, and have issued our report thereon dated April 7, 1993. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing 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 for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. ~~~~~&: April 7, 1993 C::EFrTIF'IEO:::> _.......EJ.LI<:;: ...".c:::c=:~..........--r..........."'T"= 410 PARK NATIONAL BANK BUILDING 5353 WA'fZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -103- I I I I I I I I I I I I I I I I I = - I - I jj - 1 PRINCIPALS KENNETH W. MALLOY. CPA THOMAS A. KARNOWSKI. CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUlREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 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, 1992, and have issued our report thereon dated April 7, 1993. We have applied procedures to test the City of Andover'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, 1992: political activity, civil rights, cash management, federal financial reports, allowable costs/cost principles, Drug-Free Workplace Act, and administrative requirements. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's, Compliance Supplement 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 instances of noncompliance with the requirements listed in the first paragraph of this report. 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 for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. /tf~~'f4 April 7, 1993 C::E:FTTIFIE:I:> PLJII3L'C: A..c:c::C>LJ.....--r..........-r= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVAAD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -104- I I I I I I I I I I I I I I I I - I ~ ~ I II I ! " mMALLCV KARNC\NSKI RACCSEVICH & CC.,P.A. PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH. CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REOUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS City Council and Residents City of Andover Andover, Mirmesota We have audited the general purpose financial statements of the City of Andover, Mirmesota, as of and for the year ended December 31, 1992, and have issued our report thereon dated April 7, 1993. In cormection with our audit of the general purpose financial statements of the City of Andover and with our consideration 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, 1992. 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, special requirements, 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 for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. /11'~~ aJ'~At April 7, 1993 C::::EFTT'"IFIEI:]O _......E3.LIC:::: _c:c:::::c:>lLJr-I-r............--r= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -105- 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 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, as of and for the year ended December 31, 1992, and have issued our report thereon dated April 7, 1993. Our audit was made in accordance with generally accepted auditing standards and the provisions of the Legal 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, except as noted in the Schedule of Findings. 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 for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. 4~~'~41. April 7, 1993 C:E~IF"IE-=- ~l...JaL-'C: .<>t.c::::c::::<>..........-.-...........-.-s 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOUL.EVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -106- I I I I I I I I I I I I I I I I ;1 ~ I ~ I CITY OF ANDOVER Schedule of Findings Year Ended December 31, 1992 Program Resolution of Prior Year Findings Community Development Block Grant During 1992, the City published a policy notifying employees of a drug- free workplace and is establishing a drug-free awareness program for its employees as required by the Drug- Free Workplace Act. Program/Law Current Year Findings Minnesota Statutes Section 138.17 Minnesota Statutes Section 138.17 requires that certain public records be preserved. As a result of this requirement, the State of Minnesota Department of Administration Data and Records Management Division established a general records retention schedule for cities. According to this schedule, contracts and agreements, including their related bids and specifications, must be retained by the City or its agent for ten years. It was noted that on those contracts in which the bidding process was performed by contracted engineers, original bid documents were not retained. - 107- '1 Amount of Ouestioned Costs None Amount of Ouestioned Costs None