HomeMy WebLinkAbout1992 CAFR
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CITY OF ANDOVER
Financial Report
Year Ended
December 31, 1992
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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
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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
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72
73 - 74
75 - 76
77
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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
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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
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1992
1994
1992
1994
1992
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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)
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410 PARK NATIONAL 8,lI,NK BUILDING
5353 WAVZATA BOULEVARD
MINNEAPOLIS, MINNESOTA 55416
TB...EPHONE: 612-545-0424
TB...EFAX: 612-545-0569
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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
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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)
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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
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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
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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 --
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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
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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
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1 Fiduciary Totals
.
. Fund Type (Memorandum Only)
.
. Expendatle
~ I Trost 1992 1991
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I $ $ 1,486,899 $ 1,104,359
;; 630,706 544,544
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~ 4,235,374 2,992,105
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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
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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
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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
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. Debt Service Funds
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Over
(Under)
.
. Budget Actual Budget
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$ 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
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I 581,650 360,929 (220,721)
3,108 3,108
I 3,402,966 4,895,901 1,492,935
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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)
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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
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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
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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.
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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.
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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
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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
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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.
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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
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Notes to Financial Statements (continued)
December 31, 1992
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NOTE 9 - INTERFUND RECEIVABLES AND PAYABLES
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Individual fund interfund receivables and payables at year-end were as follows:
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Interfund Interfund
Fund Receivable Pavable
General Fund $ 20,000 $
Kelsey Round Lake Park
Capital Project Fund 20,000
$ 20,000 $ 20,000
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NOTE 10 - TRANSFERS
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The following transfers were made during the year ended December 31, 1992:
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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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
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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)
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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
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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
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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
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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
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1,395
5,087
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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
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~
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B
D
E
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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
~=:-=;;;;".... ----===--- -- -- -- -- ------=-~;:::
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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
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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
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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
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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
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-51- C
~~--::-- --.- __ -:---11..- ---~ ~
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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.......-=== --
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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-
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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)
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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 ' ~:
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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)
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End of year $ 424,458 $ 344,298 $ 768,756 $ 661,308
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OTY OF ANDOVER
Enterprise Funds
Combining Statement of Cash Flows
Year Ended December31, 1992
(with Comparative Totals for Year Ended December 31, 1991)
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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
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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 $
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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
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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)
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End of year $ 344,298 $ 228,480
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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-
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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
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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
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1991
$ 20,824
20,460
(104,800)
(84,340)
(63,516)
289,580
$ 226,064
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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
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STATISTICAL SECTION
(UNAUDITED)
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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
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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
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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
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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
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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
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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
$
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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-
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SINGLE AUDIT AND OTHER REOUIRED REPORTS
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PRINCIPALS
KENNETH W. MALLOY. CPA
THOMAS A. KARNOWSKI, CPA
PAUL A. RADOSEVICH. CPA
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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.
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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.
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April 7, 1993
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410 PARK NATIONAL BANK BUILDING
5353 WA'fZATA BOULEVARD
MINNEAPOLIS, MINNESOTA 55416
TELEPHONE: 612-545-0424
TELEFAX: 612-545-0569
-96-
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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-
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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:>
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4'0 PARK NATIONAL BANK BUILDING
5353 WAVZATA BOUL.EVARD
MINNEAPOLIS, MINNESOTA 55416
TELEPHONE; 612-545-0424
TELEFAX: 612-545-0569
-98-
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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-
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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
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410 PARK NATIONAL BANK BUILDING
5353 WAVZATA BOULEVARD
MINNEAPOLIS, MINNESOTA 55416
TELEPHONE: 612-545-0424
TELEFAX: 612-545-0569
-100-
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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
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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-
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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-
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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:::>
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410 PARK NATIONAL BANK BUILDING
5353 WA'fZATA BOULEVARD
MINNEAPOLIS, MINNESOTA 55416
TELEPHONE; 612-545-0424
TELEFAX: 612-545-0569
-103-
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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-
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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
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410 PARK NATIONAL BANK BUILDING
5353 WAVZATA BOULEVARD
MINNEAPOLIS, MINNESOTA 55416
TELEPHONE; 612-545-0424
TELEFAX: 612-545-0569
-105-
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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-=-
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410 PARK NATIONAL BANK BUILDING
5353 WAVZATA BOUL.EVARD
MINNEAPOLIS, MINNESOTA 55416
TELEPHONE: 612-545-0424
TELEFAX: 612-545-0569
-106-
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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-
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Amount of
Ouestioned Costs
None
Amount of
Ouestioned Costs
None