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Home My WebLink About1993 CAFR 1 1 1 1 -I j 1 11 CITY OF ANDOVER jl 1 ~ Financial Report ~ 1 Year Ended December 31, 1993 J I . ~I j I i 1 i I ! I I I I I I j 1 " I I ~ m m m c c c ~ c c c c c c c c c C ! c: i --- 1,1 I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Financial Report Table of Contents 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, Expenditures, and Changes in Fund Balance - 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 2-3 4-7 8 - 9 10 - 11 12 13 14 - 35 36 37 - 44 45 46 47 - 48 49 - 50 51 52 53 54 m ~ w c ~ m ~ ~.; II.i C C ~ .. ~ IIj c c c c c c c - - - ----- - - - -------.--:=---i-- I - --- I CITY OF ANDOVER I Financial Report I Table of Contents (continued) I Page I COMBINING AND INDIVIDUAL FUND STATEMENTS (CONTINUED) Debt Service Funds (continued) Tax Increment Bonds Debt Service Fund I Balance Sheet 55 Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual 56 - 57 I Special Assessment Bonds Debt Service Fund Balance Sheet 58 - 61 Statement of Revenue, Expenditures, and . I Changes in Fund Balance - Budget and Actual 62 - 65 Capital Project Funds Combining Balance Sheet 66 - 67 I Combining Statement of Revenue, Expenditures, and Changes in Fund Balance 68 - 69 State-Aid Capital Project Fund I Balance Sheet 70 Statement of Revenue, Expenditures, and Changes in Fund Balance 71 Tax Increment Capital Project Fund I Balance Sheet 72 Statement of Revenue, Expenditures, and Changes in Fund Balance 73 Special Assessment Capital Project Fund I Balance Sheet 74 - 75 Statement of Revenue, Expenditures, and Changes in Fund Balance 76 - 77 Enterprise Funds Combining Balance Sheet 78 I Combining Statement of Revenue, Expenses, and Changes in Retained Earnings 79 Combining Statement of Cash Flows 80 I Water Fund - Comparative Balance Sheet 81 Statement of Revenue, Expenses, I and Changes in Retained Earnings 82 Statement of Cash Flows 83 Sewer Fund I Comparative Balance Sheet 84 Statement of Revenue, Expenses, and Changes in Retained Earnings 85 I Statement of Cash Flows 86 - Central Equipment Maintenance Internal Service Fund Comparative Balance Sheet 87 I Statement of Revenue, Expenses, j and Changes in Retained Earnings 88 Statement of Cash Flows 89 1 I 1 w w w m c c w m c m m m m c, m c m c m - -~~=-! I I ,I I -I 'I l . 11 . JI il j ! jl ~I ~I ~ II . J I J I J I 1. .. .. ~ I I CITY OF ANDOVER Financial Report Table of Contents (continued) Page COMBINING AND INDIVIDUAL FUND STATEMENTS (CONTINUED) Trust and Agency Funds Combining Balance Sheet Expendable Trust Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Agency Funds Combining Statement of Changes in Assets and Liabilities 90 - 91 92 93 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 94 95-96 97 98 99 100 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 101 102 103 - 104 105 - 107 108 109 110 111 112-114 ~ w w m c c c c c c c c c c c c c c c I ~~, I -I I 1 I I I I I I I I I I I 1 I I :1 CITY OF ANDOVER Elected and Appointed Officials December 31, 1993 Term of Office Expires Last Business Day of December Elected Mayor J. E. McKelvey 1994 Council Marjorie Perry Donald Jacobson Larry Dalien Mike Knight 1994 1996 1994 1996 Appointed Daryl E. Sulander - Acting City Administrator/Finance Director Shirley Clinton - Treasurer Victoria Volk - Clerk -1- I~ w m c m m m m ~ ~ ~ ~..' ... ~ c c ~ c c ~ .. ~.' ~ - - _ ---------r-:;- I ' -- - 1:"---::----=-=-- il 'I :1 11 II il II ;1 ;1 ]1 ]1 .1 I I I 1 I I 'I FINANCIAL SECTION m m ~ c m c m ~ Ii C ~ C C C C C C C C' , ' [ - - -:---------r---:;=--r---:- --- I ------- I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA I I I I I INDEPENDENT AUDITOR'S REPORT City Council and Residents City of Andover Andover, Minnesota I I I I I We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1993, 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. I I I I I I I 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, 1993, 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. As explained in Note 18, subsequent to December 31, 1993, one of the City's investments incurred a substantial decrease in market value. (continued) <:::EFTTIF'EC> F"1..JE3L-IC:: .-c::::c::::C:>OlJ""'-r............-rs; 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNEsarA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -2- I I Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund statements as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. I I I I I The statistical information as listed in the table of contents is not necessary for a fair presentation of the general purpose financial statements, but is presented as additional analytical data. This information is unaudited and we do not express an opinion on it. #14; JLL;/~,'?A; I I June 17, 1994 I I I I I I I I I I -3- ~ ~ ~ ~ ~ .. c ~ ~ ~ Il.J ~ c ~ ~ c c c c c c c ~ .. -------------r--i~--:- - -I ---- I CITY OF ANDOVER I Combined Balance Sheet All Fund Types and Account Groups I As of December 31,1993 (with Comparative Totals as of December 31, 1992) I I Governmental Fund Types Special Debt Capital General Revenue Service Project I Assets and Other Debits I Assets Cash and temporary investments $ 812,937 $ 55,389 $ 10,574,423 $ 5,431,682 Cash and investments held by trustee I Receivables Accounts 31,463 498 Accrued interest 16,723 1,125 205,781 223,573 , I Delinquent taxes 41,422 267 11,434 3,851 J Delinquent special assessments 16 34,120 108,330 Deferred special assessments 836 2,661,099 1,309,033 I Due from other governmental units 83,333 170 11,152 29,037 Due from other funds 20,000 Due from developer 191,244 I Prepaid items 56,131 410 ~ Inventory 1,621 Property, plant, and equipment, - net of accumulated depreciation - I j ! Other debits - Amount available in Debt Service Funds ~ I Amount to be provided for long-tenn debt 3 J Total assets and other debits $ 1,064,482 $ 56,951 $ 13,498,009 $ 7,297,658 1 I 1 I J . J I ~ j I 1 See notes to financial statements ~ I ] I -4- "! ~ GENERAL PURPOSE FINANCIAL STATEMENTS c ~ ~ ~ ~ ... w w m m ~ ~ m m c m m 0' m c c ~=--I - _------:---------1:--=------=-= I I I I I I I I I I I I I I I 11 :1 11 JI Proprietary Fund Types Fiduciary Fund Type Totals (Memorandum Only) Account Groups General General Fixed Assets L:mg- Term (Unaudited) Debt Enterprise Internal Service Trust and Agency 1993 1992 $ 473,057 $ 55,755 $ 669,370 $ $ $ 18,072,613 $ 17,187,932 25,259 25,259 227,292 259,253 240,660 12,402 1,360 5,118 466,082 296,969 56,974 66,899 2,459 144,925 268,012 28,706 3,999,674 5,164,178 368 124,060 136,582 20,000 20,000 191,244 205,314 30,240 86,781 5,515 21,613 28,749 7,371 16,779,043 5,629,795 22,408,838 20,213,439 10,775,895 10,775,895 7,986,525 13,995,030 13,995,030 18,370,010 $ 17,559,082 $ 78,728 $ 699,747 $ 5,629,795 $ 24,770,925 $ 70,655,377 $ 70,163,891 (continued) -5- CITY OF ANOOVER Combined Balance Sheet (continued) All Fund Types and Account Groups As of December 31, 1993 (with Comparative Totals as of December 31,1992) Governmental Fund Types Special Debt Capital General Revenue Service Project liabilities, Equity, and Other Credits liabilities Accounts payable $ 116,809 $ 7,928 $ $ 138,586 Contracts payable 1,966 334,960 Accrued expenses 17,306 14,906 14,052 Due to other funds 20,000 Due to other governmental units 30,674 Deposits payable 7,000 Deferred revenue 42,274 8,117 2,706,655 1,632,086 Arbitrage rebate 553 3,890 Contract for deed Bonds payable Deferred compensation payable to employees Total liabilities 209,029 16,045 2,722,114 2,150,574 Equity and other credits Investment in general fixed assets Contributed capital Retained earnings - unreserved Fund balance (deficit) Reserved for debt service 10,793,939 Unreserved Designated for employee benefits Designated for assessment administration Designated for working capital 855,453 Designated for capital projects 6,259,544 Designated for equipment 275,058 Undesignated 40,906 (18,044) (1,387,518) Total equity and other credits 855,453 40,906 10,775,895 5,147,084 Total liabilities, equity, and other credits $ 1,064,482 $ 56,951 $ 13,498,009 $ 7,297,658 See notes to financial statements -6- --_.-1--- t ~ ~ to ~ ~ W,. ! : , ~ ~ ~ .. ~ C ~.' w. ,. 'II C ~ C C t I I I I Proprietary Fiduciary Totals Fund Types Fund Type Account Groups (Memorandum Only) I General General Internal Trust and Fixed Assets Long-Term Enterprise Service Agency (Unaudited) Debt 1993 1992 I I $ 13,692 $ 5,399 $ 4,680 $ $ 160,581 $ 447,675 $ 591,317 336,926 193,595 I 12,920 790 83,162 143,136 122,035 20,000 20,000 2,689 33,363 86,473 I 62 512,919 519,981 474,650 138 4,389,270 5,700,073 4,443 4,443 39,182 39,182 37,944 I 24,488,000 24,488,000 26,066,000 25,045 25,045 29,501 6,189 542,644 24,770,925 30,447,021 33,296,530 I 5,629,795 5,629,795 5,281,121 I 16,639,805 50,000 16,689,805 14,876,847 889,776 22,539 912,315 768,756 I 10,793,939 8,332,557 5,911 5,911 I 151,192 151,192 855,453 728,760 6,259,544 7,822,882 I 275,058 181,883 (1,364,656) (1,125,445) 17,529,581 72,539 157,103 5,629,795 40,208,356 36,867,361 I $ 17,559,082 $ 78,728 $ 699,747 $ 5,629,795 $ 24,770,925 $ 70,655,377 $ 70,163,891 I I -7- I CI1Y OF ANOOVER 0 Combined Statement of Revenue, Expenditures, and Cbanges in Fund Balance C All Governmental Fund Types and Expendable Trust Fund Year Ended December 31,1993 (with Comparative Totals for Year Ended December 31, 1992) Governmental Fund Types C Special Debt Capital General Revenue Service Project t Revenue Taxes ad valorem $ 1,241,114 $ 11,647 $ 369,695 $ Tax increments 691,857 Special assessments 3 4,609,828 599,662 C licenses and pennits 470,371 Intergoverrnnental 710,910 16,012 249,139 248,949 Cbarges for services 152,868 Fines and forreits 38,178 C Other Interest earned on investments 36,938 1,579 453,645 585,295 Sale of property C Park dedication fees 11 0,366 Refunds and reimbursements 33,645 84,895 Miscellaneous 4,929 1,119 68,321 Total revenue 2,688,953 30,360 5,682,307 2,389,345 f!II Expenditures ~ ament General government 720,178 Public safety 937,371 C i i Public works 520,802 40,348 Sanitation 36,904 Parks and recreation 232,809 C Recycling 50,461 Economic development 22,836 Unallocated 53,691 Miscellaneous C Capital projects 3,982,299 Debt service Principal 5,748,000 C Interest and other 1,598,407 Total expenditures 2575,052 40,348 7,346,407 3,982,299 Excess (deficiency) of ,. revenue over expenditures 113,901 (9,988) (1,664,100) (1,592,954) i.l Other fmancing sources (uses) Bond proceeds 548,000 3,570,997 C Operating transfers in 97,498 3,679 2,593,907 1,393,780 Operating transfers (out) (23,000) (296,786) (3,684,561 ) Total other financing sources (uses) 74,498 3,679 2,845,121 1,280,216 Excess (deficiency) of revenue and C other fmancing sources over expen- ditures and other fmancing uses 188,399 (6,309) 1,181,021 (312,738) Fund balance C Beginning of year 731,760 42,509 7,986,525 7,008,171 Residual equity transfers in 4,706 2,225,347 71,401 C Residual equity transfers (out) (64,706) (616,998) (1,619,750) End of year $ 855,453 $ 40,906 $ 10,775,895 $ 5.147,084 See notes to fmancial statements C -8- ~ --- ~ ~ I I . I Fiduciary Totals Fund Type (Memorandum Only) ~ I Expendable Trust 1993 1992 $ $ 1,622,456 $ 1,486,899 I 691,857 630,706 5,209,493 4,235,374 470,371 430,024 1,225,010 2,058,399 I 152,868 120,708 38,178 39,565 9,683 1,087,140 726,644 I 38,228 11 0,366 113,153 118,540 45,865 9,791 84,160 59,022 I 19,474 10,810,439 9,984,587 i - j I 720,178 672,936 937,371 908,312 561,150 470,045 I 36,904 28,976 1 232,809 204,267 50,461 39,622 22,836 17,659 - I 53,691 77,060 - 7,156 7,156 - 3,982,299 4,735,509 - I 5,748,000 1,556,000 ~ 1,598,407 1,530,561 7,156 13,951,262 10,240.947 - j I 12,318 (3,140,823) (256,360) - I 4,118,997 4,958,400 40,611 4,129,475 1,686,503 - (67,498) (4,071,845) (1,679,373) J I (26,887) 4,176,627 4,965,530 , (14,569) 1,035,804 4,709,170 J I ;; 171,672 15,940,637 11,251,467 1 I 2,301,454 20,000 .1 (2,301,454) ( 40,000) $ 157,103 $ 16.976,441 $ 15,940,637 , I ~ I -9- 1 CITY OF ANDOVER Combined Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual General and Debt Service Funds Year Ended December 31, 1993 General Fund Over (Under) Budget Actual Budget $ 1,296,030 $ 1,241,114 $ (54,916) 418,270 470,371 52,101 657,915 710,910 52,995 122,900 152,868 29,968 40,000 38,178 (1,822) 44,000 36,938 (7,062) 31,000 33,645 2,645 9,000 4,929 (4,071) 2,619,115 2,688,953 69,838 97,498 97,498 (23,000) (23,000) 74,498 74,498 $ 188,399 $ 188,399 731,760 (64,706) $ 855,453 Revenue Taxes ad valorem Special assessments Licenses and permit s futergovernmental Charges for services Fines and forfeits Other futerest earned on investments Refunds and reimbursements Miscellaneous Total revenue Expenditures Current General government Pu blic safety Public works Sanitation Parks and recreation Recycling Economic development Unallocated Debt service Principal futerest and other Total expenditures 706,964 946,334 542,087 54,975 249,292 46,611 24,212 123,138 2,693,613 Excess (deficiency) of revenue over expenditures (74,498) Other fmancing sources (uses) Bond proceeds Operating transfers in Operating transfers (out) Total other fmancing sources (uses) Excess (deficiency) of revenue and other fmancing sources over expenditures and other fmancing uses Fund balance Beginning of year Residual equity transfers in Residual equity transfers (out) End of year See notes to financial statements -10- 720,178 937,371 520,802 36,904 232,809 50,461 22,836 53,691 2,575,052 113,901 - ------r--::---,-- o [ ~ ". ~ ~ II o w ~ ... 13,214 (8,963) (21,285) (18,071) (16,483) 3,850 (1,376) (69,447) m c m c (118,561) 188,399 ~ ~ ~ ~ .. ~ ~ IW ~ -.. ~ I I I Debt Service Funds I Over (Under) Budget Actual Budget I $ 369,446 $ 369,695 $ 249 1,733,720 4,609,828 2,876,108 I 250,184 249,139 (1,045) I 421,750 453,645 31,895 I 2,775,100 5,682,307 2,907,207 I I I 5,803,000 5,748,000 (55,000) I 1,590,055 1,598,407 8,352 7,393,055 7,346,407 (46,648) (4,617,955) (1,664,100) 2,953,855 I 548,000 548,000 I 2,593,907 2,593,907 (296,786) (296,786) 2,297,121 2,845,121 548,000 I $ (2,320,834 ) 1,181,021 $ 3,501,855 I 7,986,525 2,225,347 (616,998) I $ 10,775,895 I -il- I ~ CITY OF ANDOVER ' I Combined Statement of Revenue, Expenses, and Olanges in Retained Earnings C Proprietary Fund Types Year Fnded December 31, 1993 (with Comparative Totals for Year Fnded December 31, 1992) ~ Totals Internal (Memorandum Only) Fnterprise Service 1993 1992 ~ Operating revenue ~ User charges $ 763,587 $ 143,948 $ 907,535 $ 659,266 Meters 53,935 53,935 11,199 ~ Permit fees 22,983 22,983 20,700 ~ Penalties 15,431 15,431 14,365 Other 24,790 24,790 39,237 Total operating revenue 880,726 143,948 1,024,674 744,767 C Operating expenses Personal services 178,942 32,667 211,609 141,506 ~ Supplies 33,630 57,210 90,840 33,424 Meters, etc. 42,372 42,372 1,435 Other services and charges 104,419 35,289 139,708 71,675 P Disposal charges 349,459 349,459 248,244 ~ Total operating expenses 708,822 125,166 833,988 496,284 Operating income before depreciation 171,904 18,782 190,686 248,483 ~ Depreciation 407,577 407,577 377,054 Operating income (loss) (235,673) 18,782 (216,891) (128,571) C Other income ~ Interest income 25,423 3,757 29,180 21,603 ., ' " Income (loss) before operating transfers (210,250) 22,539 (187,711) (106,968) C Operating transfers in Debt Service Funds 30,500 Operating transfers (out) C Capital Project Funds (20,000) (20,000) Debt Service Funds (37,630) (37,630) (37,630) Total operating transfers (57,630) (57,630) (7,130) L Net income (loss) (267,880) 22,539 (245,341) (114,098) Add credit for depreciation on contributed assets 388,900 388,900 367,158 t Income closed to retained earnings 121,020 22,539 143,559 253,060 Retained earnings C Beginning of year 768,756 768,756 545,696 Residual equity transfers (out) (30,000) C Fnd of year $ 889,776 $ 22,539 $ 912,315 $ 768,756 See notes to financial statements C -12- 0 ---- -- I-:~ I CITY OF ANDOVER I Combined Statement of Cash Flows Proprietary Fund Types Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) I Totals Internal (Memorandum Only) Enterprise Service 1993 1992 I Cash flows from operating activities Operating income Qoss) $ (235,673) $ 18,782 $ (216,891 ) $ (128,571) Adjustments to reconcile operating income Qoss) to net cash provided by operating activities I Prior period adjustment (115,612) Depreciation 407,577 407,577 377,054 Olange in assets and liabilities Receivables I Accounts (29,088) (29,088) (35,006) Delinquent special assessments (72) (72) 198 Defened special assessments (66) (66) (11,477) I Due from other governmental units 10,857 10,857 (1,909) Inventory 377 (21,613) (21,236) 1,435 Prepaid items (30,240) (30,240) Accounts payable (20,040) 5,399 (14,641) 26,732 I Accrued expenses 303 790 1,093 (1,653) Due to other governmental units 2,689 2,689 (357) Depa;its payable 62 62 Defened revenue 138 138 - I Net cash provided by operating activities 106,824 3,358 110,182 11 0,834 Cash flows from capital and related fmancing activities Acquisition of capital assets (52,444) (52,444) (51,993) I Cash flows from investing activities Interest received 22,069 2,397 24,466 19,484 I Cash flows from noncapital fmancing activities Operating transfer from Debt Service Funds 30,500 Operating transfer to Debt Service Funds (37,630) (37,630) (37,630) Operating transfer to Capital Project Funds (20,000) (20,000) - I Residual equity transfer from General Fund 20,000 Residual equity transfer from Enterprise Funds 30,000 Residual equity transfer to Internal Service Fund (30,000) I Net cash provided (used) by noncapital fmancing activities (57,630) (57,630) 12,870 Net increase in cash and I temporary investments 18,819 5.755 24,574 91,195 1 Cash and temporary investments - Beginning of year 454,238 50,000 504,2.,8 413,043 j I End of year $ 473,057 $ 55,755 $ 528,812 $ 504,2.'8 Supplemental schedule of noncash investing, I capital, and fmancing activities Assets contributed by other funds $ 2,201,858 $ $ 2.201,858 $ 467,2.,3 I Prior period adjustment Assets contributed by customers $ $ $ $ 104,501 Accumulated depreciation on contributed assets (15,107) I $ $ $ $ 89,394 See notes to fmancial statements I -13- ---"----,--.- I p ~ ~ ~ ~ ~ ~ ~ ~ ~ ~i i ! [! I I ~i ~. PI- lI.:i i fill ~ [ I ,. ... t I I r [ I I I I I -I ~I I I I I I ~I I I I I "1 J I CITY OF ANDOVER Notes to Financial Statements December 31, 1993 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. The accounting policies of the City conform to generally accepted accounting principles as applicable to governmental units. B. Reporting Entity The City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and any component units of the City (the primary government). Component units are legally separate entities for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. The Fire Relief Association is excluded from the City's financial statements because the City is not financially accountable for it based on the criteria referred to above. 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 bonded general long- term debt obligations. -14- CITY OF ANDOVER ~, .. Notes to Financial Statements (continued) December 31, 1993 . ~ NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) fI!I ij, 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 or equipment (other than those financed by Proprietary Funds and Trust Funds). ~ ~ ~ o ~ .. ~ ~ 2. Proprietary Fund Types a. Enterprise Funds - The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. b. Internal Service Fund - The Internal Service Fund is used to account for the City's Central Equipment Maintenance operations. Internal Service Fund operations are operated in a manner similar to Enterprise Funds, except that the services are provided primarily to other departments within the City. 3. Fiduciary Fund Type a. Trust and Agency Funds - The Trust and Agency Funds are used to account for assets held by the City in the capacity of trustee or agent. 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. ~ D. Measurement Focus and Basis of Accounting . ~ The accounting and financial reporting treatment applied to a fund is determined by its measurement focus and its basis of accounting. r .. Measurement Focus [ The measurement focus of a fund determines what the fund measures. .. I' . .. All Governmental and Expendable Trust Funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. -15- ~ II C ~ I ~~ I -- -- 1- --~-- I I I ~I I I JI I 11 'I J jl 11 ~ ~ I . 11 ~ , I ~ ~ . 11 J. ]1 ]1 , CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Fixed assets used in governmental fund type operations and long-term liabilities expected to be financed from governmental funds are accounted for in two account groups, as they are concerned only with the measurement of financial position, and are not involved with measurement of results of operations. Proprietary Funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Basis of Accounting A fund's basis of accounting determines when a transaction or event is recognized in the fund's operating statement. The modified accrual basis of accounting is used by all governmental fund types, Expendable Trust Funds, and Agency Funds. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition - Revenue is recognized when it becomes measurable and available. "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. Major revenue that is susceptible to accrual includes property taxes, special assessments, intergovernmental revenue, charges for services, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collected. 2. Recording of Expenditures - Expenditures are recognized under the modified accrual basis of accounting when the related fund liability is incurred. However, expenditures are recorded as prepaid for approved disbursements or liabilities incurred in advance of the year in which the item is to be used. Principal and interest on general long-term debt which is recognized when due. Proprietary Funds are accounted for using the accrual basis of accounting. Under this method, revenues are recognized when earned and expenses are recognized when they are incurred. E. Cash and Investments Cash balances from all funds are combined and invested to the extent available in short-term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds. -16- CITY OF ANDOVER ~ I' , ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Notes to Financial Statements (continued) December 31, 1993 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and investments held by trustee include balances held in segregated accounts established for specific purposes. Interest earned on these investments is allocated directly to the fund. In the Expendable Trust and Agency Funds, trust accounts are established for flexible benefits and deferred compensation payable to employees. Investments are stated at cost or amortized cost, except for assets of the Deferred Compensation Plan Agency Funds, which are reported at market value. F. 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 1993 budget was amended at the departmental level. The "Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - 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. Budgeted appropriations (including operating transfers out) shown are as originally adopted except for the following mid-year budget amendments: Original Budget Amendments Amended Budget General Fund $ 2,551,515 $ 165,098 $ 2,716,613 G. Property Taxes rr . Property tax levies are set by the City Council in October of 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. '" w.1 [I ,. .. -17- ~ I ~: [I ~ 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. -r-;. I I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 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 to the county. The corresponding revenue from the delinquent (umemitted) and deferred (certified but not yet levied) special assessments receivable is deferred until the year in which it becomes available (collected within 60 days of year-end). I. Inventories The inventories of the General Fund and the Proprietary Funds are stated at cost on the first-in, first-out basis. The General Fund accounts for inventory using the consumption method. 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. 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. -18- CITY OF ANDOVER ~ c c ~ ~ ~ ~ ~ ~ ~ Notes to Financial Statements (continued) December 31, 1993 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Memorandum Only Columns Because the accounting system is organized and operated on a fund basis, the columns on the combined financial statements captioned, "Totals (Memorandum Only)," are presented for informational purposes only and are not intended to represent consolidated information. 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. M. 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. N. Statement of Cash Flows For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City 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 - DEPOSITS AND INVESTMENTS -19- c c ~ ~ ~ ~ ~ C A. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. 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 $3,041,777, while the balance on the bank records was $3,221,646. 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. - --.--,-----::- r I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments I I I The City may also invest idle funds as authorized by Minnesota Statutes, as follows: direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above; general obligations of the State of Minnesota or any of its municipalities; bankers' acceptances of United States' banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States' corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less; repurchase or reverse purchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers; and futures contracts sold under authority of Minnesota Statutes ~ 471.56, Subd. 5. I I I I I The City's investments are categorized below to give an indication of the level of custodial credit risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. Deposits and investment balances at December 31, 1993 are as follows: Custodial Credit Risk Category Carrying Market I 2 3 Value Value U.S. government securities $ 5,070,986 $ - $ 3,982,882 $ 9,053,868 $ 9,398,546 Commercial paper 1,444,588 493,176 1,937,764 1,945,039 Local government securities 100,000 100,000 100,077 $ 6,615,574 $ - $ 4,476,058 11 ,091 ,632 11,443,662 Unclassified - investment pools U.S. government security mutual funds Held by trustees 3,939,204 25,259 3,939,204 25,259 Total investments 15,056,095 $ 15,408,125 I I Deposits 3,041,777 Total deposits and investments $ 18,097,872 Deposits and investments are reported on the City's combined balance sheet as follows: I I I Cash and temporary investments Cash and investments held by trustee $ 18,072,613 25,259 Total deposits and investments $ 18,097,872 -20- Total from all sources $ 19,628 32,938 52,566 31,014 9,762 6,328 24,214 176 71,494 $ 124,060 ~ ~ ~ c ~ ~ ~ ~ ~ c ~ c c ~ ~ ~ ~ c ~ CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 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. At December 31, 1993, the remaining principal due of $191,244 is offset by deferred revenue as it is not available to finance current activities. NOTE 4 - DUE FROM OTHER GOVERNMENTAL UNITS The amounts due from other governmental units at December 31, 1993 are comprised of the following: Due from State of Minnesota State share of street improvement projects Fire town aid Total due from State of Minnesota Due from Anoka County Unremitted taxes collected Unremitted special assessments collected Reimbursement of Community Development Block Grant expenditures County share of recycling program costs Court fines and other Total due from Anoka County NOTE 5 - PROPERTY AND EQUIPMENT A. Proprietary Fund Type Property and Equipment A summary of proprietary fund type property, equipment, and accumulated depreciation follows: Water Sewer Total Furniture and equipment $ 314,918 $ 65,494 $ 380,412 Machinery 898,814 898,814 Collection and distribution systems 7,660,844 11 ,018,681 18,679,525 8,874,576 11 ,084, 175 19,958,751 Less accumulated depreciation 1,156,553 2,023,155 3,179,708 $ 7,718,023 $ 9,061,020 $ 16,779,043 -21- -~---~ -- - I I I I ~I I I ~I ~I ~I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 5 - PROPERTY AND EQUIPMENT (CONTINUED) B. Changes in General Fixed 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 $ 839,255 $ 218,418 $ 13,205 $ 1,044,468 Buildings and improvements 1,788,116 1,788,116 Furniture and equipment 340,713 21,613 5,523 356,803 Machinery and automotive equipment 2,313,037 127,371 2,440,408 $ 5,281,121 $ 367,402 $ 18,728 $ 5,629,795 NOTE 6 - LONG-TERM DEBT A. Summary of Changes in Long-Term Debt II The following is a summary of changes in long-term debt of the City for the year ended December 31, 1993: - I I -I j I ~ I Balance Balance Beginning New Debt Debt End of of Year Issues Retired Year General long-term debt General Obligation Bonds $ 25,690,000 $ 4,170,000 $ 5,640,000 $ 24,220,000 Certificates of Indebtedness 376,000 108,000 268,000 Assessments on City property 176,782 16,201 160,581 Capital lease obligations 1,097 1,097 Compensated absences payable 74,712 8,450 83,162 Contract for deed payable 37,944 13,000 11,762 39,182 Total general long-term debt $ 26,356,535 $ 4,191 ,450 $ 5,777,060 $ 24,770,925 ] I j I ! I 1- 'Ii; -22- ~ : i CITY OF ANDOVER Notes to Financial Statements (continued) C December 31, 1993 C NOTE 6 - LONG-TERM DEBT (CONTINUED) B. Components of Long-Term Debt C Final Balance m Original Interest Issue Maturity at Issue Rate Date Date Year-End General long-term debt m General Obligation Bonds Special Assessment Bonds huprovement Bonds of Series 1977 A $ 1,215,000 5.00% 3-1-1977 1-1-2006 $ 735,000 huprovement Bonds of 1978 $ 270,000 5.25-6.00% 11-1-1978 2-1-1999 110,000 huprovement Bonds of 1979 $ 270,000 6.50% 10-1-1979 2-1-1995 50,000 m huprovement Bonds of Series 1985A $ 300,000 8.25-9.60% 3-1-1985 2-1-2000 165,000 huprovement Bonds of Series 1985B $ 2,350,000 6.00-9.00% 8-1-1985 8-1-2000 1,255,000 huprovement Bonds of Series 1986A $ 1,795,000 5.00-7.90% 7-1-1986 8-1-2001 1,070,000 huprovement Bonds of Series 1986B $ 2,600,000 4.75-6.30% 10-1-1986 10-1-1996 970,000 m Refunding Bonds of Series 1986C $ 2,485,000 6.00-7.40% 8-1-1986 8-1-2002 1,855,000 huprovement Bonds of Series 1989A $ 3,200,000 6.10-6.80% 7-1-1989 8-1-2001 2,400,000 I Temporary huprovement Bonds of Series 1991B $ 3,400,000 5.40% 7-1-1991 7-1-1994 3,400,000 m Temporary huprovement Bonds of Series 1992A $ 4,800,000 3.80% 8-1-1992 8-1-1995 4,800,000 Temporary huprovement Bonds of Series 1993A $ 3,650,000 4.55% 8-1-1993 8-1-2003 3,650,000 C Tax Increment Bonds G.O., Tax Increment Bonds of Series 1987 A $ 1,065,000 8.25-9.90% 5-1-1987 2-1-2005 930,000 G.O. Tax Increment C Bonds of Series 1993B $ 520,000 4.65% 8-1-1993 8-1-2003 520,000 G.O. State-Aid Street Bonds 1984 $ 510,000 6.75-9.00% 9-1-1984 9-1-1994 60,000 1988 $ 500,000 5.60-6.80% 8-1-1988 8-1-1998 250,000 C G.O. Fire Station Bonds of Series 1991A $ 2,500,000 5.00-6.50% 7-1-1991 7-1-2001 2,000,000 Total General Obligation Bonds 24,220,000 Certificates of Indebtedness C 1989 Certificates of Indebtedness $ 110,000 6.25-6.35% 12-1-1989 12-1-1994 22,000 1990A Certificates of Indebtedness $ 252,000 6.30-6.70% 12-31-1990 1-1-1996 102,000 1992 Certificates of Indebtedness $ 180,000 4.25-5.75% 8-1-1992 8-1-1997 144,000 C Total Certificates of Indebtedness 268,000 Assessments on City property $ 338,174 6.25-10.70% N/A 2001 160,581 Contract for deed payable - park property $ 47,430 9.00% 8-5-1991 8-1-1996 28,458 C Contract for deed payable - street right of ways $ 13,000 8.50% 6-1-1993 6-1-1996 10,724 Compensated absences payable N/A N/A N/A N/A 83,162 C Total general long-term debt $ 24,770.925 C C -23- C -- -- ---- - --- - ~-----------.:::::;=-r ------;---- 1;--:--=- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 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 Year Ending Obligation of Contracts December 31 Bonds Indebtedness for Deed Total 1994 $ 6,734,435 $ 123,814 $ 16,761 $ 6,875,010 1995 7,915,325 97,407 15,907 8,028,639 1996 2,764,221 40,068 12,181 2,816,470 1997 2,325,426 38,070 2,363,496 1998 2,218,166 2,218,166 Thereafter 7,508,046 7,508,046 29,465,619 299,359 44,849 29,809,827 Less amount representing interest 5,245,619 31,359 5,667 5,282,645 $ 24,220,000 $ 268,000 $ 39,182 $ 24,527,182 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. -24- CITY OF ANDOVER ~ ~ ~ ~ ~ c c ~ ~ c c c C D ~ C C t C Notes to Financial Statements (continued) December 31, 1993 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. They will be retired through payments from the City funds that "own" the specific parcels of land. o Contracts 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. In May 1993, the City entered into an agreement to purchase a piece of land. The total cost of the land was $20,000, consisting of a cash payment of $7,000 and a contract for deed for the remaining $13,000. The contract for deed bears an annual interest rate of 8.5% and calls for monthly payments through May 1, 1996. o Compensated Absences Payable - This liability represents vested vacation and severance benefits earned by employees of the governmental funds 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, 1993 is $10,775,895. 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 $3,303,707 at December 31, 1993. 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 1993 were as follows: -25- ---.-::; I -I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 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 $ 6,668,959 $ 8,157,888 $ 14,826,847 $ 50,000 $ 14,876,847 Capital contributed From other funds 1,099,842 1,059,644 2,159,486 2,159,486 From utility customers 42,372 42,372 42,372 Less current year's depreciation on contributed assets (181,927) (206,973) (388,900) (388,900) Balance, end of year $ 7,629,246 $ 9,010,559 $ 16,639,805 $ 50,000 $ 16,689,805 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, 1993 is as follows: Water Fund Sewer Fund Total Operating revenue $ 362,829 $ 517 ,897 $ 880,726 Operating expenses $ 278,900 $ 429,922 $ 708,822 Depreciation expense $ 195,640 $ 211,937 $ 407,577 Operating loss $ (111,711) $ (123,962) $ (235,673) Net loss $ (115,509) $ (152,371) $ (267,880) Operating transfers (out) $ (20,000) $ (37,630) $ (57,630) Current capital contributed $ 1,142,214 $ 1,059,644 $ 2,201,858 Property and equipment additions $ 1,147,267 $ 1,087,035 $ 2,234,302 Net working capital $ 402,099 $ 348,439 $ 750,538 Total assets $ 8,136,250 $ 9,422,832 $ 17,559,082 Total equity $ 8,120,122 $ 9,409,459 $ 17,529,581 -26- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 9 - INTERFUND RECEIVABLES AND PAY ABLES ~ m m Individual fund interfund receivables and payables at year-end were as follows: w NOTE 10 - TRANSFERS Interfund Interfund Fund Receivable Payable General Fund $ 20,000 $ Kelsey Round Lake Park Capital Project Fund 20,000 $ 20,000 $ 20,000 m m ~ ~ ~ The following transfers were made during the year ended December 31, 1993: A. Operating Transfers Transferred To General Fund General Fund General Fund Certificates of Indebtedness Debt Service Fund Drainage and Mapping Special Revenue Fund Drainage and Mapping Special Revenue Fund Improvement Bonds Series 1985B Account Debt Service Fund Improvement Bonds Series 1986B Account Debt Service Fund Improvement Bonds Series 1986B Account Debt Service Fund Transferred From Amount Tax Increment Capital Project Fund - TIF Project 1-1 Account Tax Increment Capital Project Fund - TIF Project 1-2 Account Administrative Trust Fund Sewer Enterprise Fund $ 24,000 6,000 67,498 37,630 Improvement Bonds of 1992 Account Debt Service Fund Unflllanced Improvement Account Capital Project Fund Water Trunk Account Capital Project Fund 3,375 312,390 Water Trunk Account Capital Project Fund 261,130 Sewer Trunk Account Capital Project Fund 408,400 -27- ~ Description c 304 To reimburse administrative costs related to tax increments. To reimburse administrative costs related to tax increments. To fund administrative costs. To reimburse Certificates of Indebtedness for amounts used to purchase Sewer Fund equipment. To transfer assessments collected. To transfer assessments collected. To reimburse debt service for principal payments made. ~" .. ~ .. ~ ~ c To transfer funds dedicated to debt service payments and connection charges assessed with various capital improvement projects. To transfer funds dedicated to debt service payments and connection charges assessed with various capital improvement projects. ~ c c (continued) c c j ,----.- CI CITY OF ANDOVER I Notes to Financial Statements (continued) December 31, 1993 I I NOTE 10 - TRANSFERS (CONTINUED) Transferred To Transferred From Amount Description Improvement Bonds Water Trunk Account 1,180,768 To fund additional water and Series 1990A Account Capital Project Fund sewer construction projects. Debt Service Fund Improvement Bonds Sewer Trunk Account 393,589 To fund additional water and Series 1990A Account Capital Project Fund sewer construction projects. Debt Service Fund Water Trunk Account Improvement Bonds of 1992 194,843 To transfer assessments Capital Project Fund Account Debt Service Fund collected. Sewer Trunk Account Improvement Bonds of 1992 61,895 To transfer assessments Capital Project Fund Account Debt Service Fund collected. Kelsey Round Lake Park General Fund 20,000 To transfer funds per adopted Capital Project Fund budget. Compensated Absences General Fund 3,000 To transfer funds per adopted Expendable Trust Fund budget. Unfinanced Improvement Improvement Bonds of 1993A 1,097,042 To provide funding for Account Capital Project Fund Account Capital Proj ect Fund previously unfmanced improvement projects. Permanent Improvement Water Enterprise Fund 20,000 To transfer funds per adopted Revolving Account Capital budget. Project Fund Administrative Trust Fund Improvement Bonds of 1992 36,673 To transfer assessments Account Debt Service Fund collected. Administrative Trust Fund Unfrnanced Improvements 938 To transfer assessments Account Capital Project Fund collected. $ 4,129,475 I I I I I I I I B. Residual Equity Transfers Transferred To Transferred From Amount Description Forestry Special Revenue Fund General Fund $ 4,706 To finance start-up of Forestry Fund. 1991A G.O. Bonds City Buildings Construction 139 To close 1991A G.O. Bonds Debt Debt Service Fund Capital Project Fund Service Fund. Improvement Bonds Series Permanent Improvement 452,544 To close Improvement Bonds 1990A Account Debt Revolving Account Capital Series 1990 Account Debt Service Fund Project Fund Service Fund City Buildings Construction General Fund 60,000 To finance start-up of City Capital Project Fund Buildings Construction Capital Project Fund Permanent Improvement Improvement Bonds 11,401 To close Improvement Bonds Revolving Account Series 1980C Account Series 1980C Debt Service Fund Capital Project Fund Debt Service Fund Improvement Bonds of 1989 Improvement Bonds 1,167,067 To close Improvement Bonds Account Debt Service Fund Series 1989A Construction Series 1989A Construction Account Capital Project Fund Account Capital Project Fund Improvement Bonds Improvement Bonds of 1993A 605,597 To close Improvement Bonds Series 1990B Account Account Debt Service Fund Series 1990B Account Debt Debt Service Fund Service Fund $ 2.301 ,454 I I I I I I I -28- Fund Deficit ~ w ~ ~ c ~ CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 11 - INDIVIDUAL FUND DISCLOSURES The following fund had a deficit as of December 31, 1993: Certificates of Indebtedness Debt Service Fund $ 3,683 The deficit in the Certificates of Indebtedness Debt Service Fund will be financed through future tax levies. ~ ~" , , , For various reasons, certain funds have a portion of their fund equity designated or reserved for specific purposes. A discussion of each such item as it appears on the Combined Balance Sheet follows: Amount Over Budget c c c c c c c c ~ c c m 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 Employee Benefits - The balances in the City's Flexible Benefits and Compensated Absences Expendable Trust Funds are designated for future employee benefit payments. o Designated for Assessment Administration - The balance in the Administrative Trust Expendable Trust Fund is designated for special assessment project administration. 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 1993, expenditures at the fund level exceeded appropriations as follows: Debt Service Funds State-Aid Bonds Tax Increment Bonds $ 16 $ 701,134 -29- - --------=---------v-:;- I I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 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, multi- ple-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 31,1993 was $847,399 compared to the City's total payroll of $1,011,920. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon the 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 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, Subd. 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: -30- CITY OF ANDOVER w ~ Notes to Financial Statements (continued) December 31, 1993 "" I.U NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) PERF $ 35,845 $ 37,964 4.23% 4.48% ~ ~ m m ~ ~ t ~ ~ . ~ L m ~ Statutory Ftates Employees Employer Required Rates * PERF (Basic and Coordinated Plans) 4.39% 4.67% 9.95 % * The recommended rates scheduled above represent the required rates for fiscal year 1993 contributions as reported in the July 1, 1992 actuarial valuation reports. Total contributions made by the City during fiscal year 1993 were: Amounts Employees Employer Percentage of Covered Payroll Employees Employer The City's contribution for the year ended December 31, 1993 to the PERF represented 0.03 % of total employer contributions required of all participating entities. C. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees' Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation as of June 30, 1993 is shown below: Total pension benefit obligation $ 5,163,766,000 Net assets available for benefits, at cost (market values for PERF = $4,515,052,000) 4,304,163,000 Unfunded pension benefit obligation $ 859,603,000 ~I ~ The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of June 30, 1993. -31- c c - -- ---~--:r-:;~-- - I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) 2. Changes in Benefit Provisions Three bills enacted during the 1993 legislative session improved benefits for many members without a material effect on the pension benefit obligation in the PERF. The early retirement incentive bill permitted a public employer to offer PERA's Basic and Coordinated members an increase of 0.25% in the formula multiplier for each year of service, up to the first 30 years, or health insurance coverage to age 65. Also, the survivor protection bill provided benefits to either a surviving spouse or children of PERF Coordinated Plan members who die before age 50. Lastly, the Police and Fire benefit increase bill, which became effective July 1, 1993, permanently increased the PEPFF formula multiplier from 2.50% to 2.65% of an individual's average salary over the five highest consecutive years of earnings. D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Component Unit Financial Report for the year ended June 30, 1993. 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, 1993, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. 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 ~ 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, 1993 was $102,104. The City's total payroll was $1,011,920. 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 fighter who completes at least 20 years as an active member of the municipal fire department to which the Association is associated, and has been a member of the Relief Association for at least 10 years prior to retirement after age 50, is entitled to a service pension upon retirement. -32- CITY OF ANDOVER ~ ~ rill -.. Ie ~ Notes to Financial Statements (continued) December 31, 1993 NOTE 13 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION (CONTINUED) The service pension prescribed by the Association's bylaws 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 bylaws 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 bylaws. This percentage increases 4% per year so that at 20 years of service, the full amount prescribed is paid. rM .. -33- ~ ~", .. ~ C C C C C ~ C C C o 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 Special Pension Fund, not to exceed 5 % per year. An active member of the Association who becomes disabled to the extent that a physician shall certify that such disability will permanently prevent the member from performing his duties in the Andover Fire Department, is entitled to a disability pension equal to the balance in the member's account after 100 days of disability. If a member who has received such a disability pension should subsequently recover and return to active duty in the Andover Fire Department, any amount paid to him as a disability pension shall be deducted from his service pension accrued at the time of such disability. Upon the death of any member of the Association who is in good standing at the time of 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 1993, the City contributed $46,238 to the Association, consisting of $32,938 state aid and $13,300 fulfilling the City's $350 per member contribution obligation for the year ended December 31, 1993. The City's contribution represents 13.03% of covered payroll. ~ - 1 I -I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 14 - TAX INCREMENT FINANCING DISTRICTS The City is the administering authority for the following tax increment financing districts within their respective development districts: Tax Increment Tax Increment District - District - Development Development District No. 1-1 District No. 1-2 Type of District Redevelopment Redevelopment Chapter 472 472 Year Established 1986 1986 Final year of District 2012 2012 Original Tax Capacity $ 42,271 $ 28,613 Current Tax Capacity (For Taxes Collectible in 1993) $ 448,540 $ 233,250 Captured Tax Capacity Retained by Authority $ 406,269 $ 204,637 Total Tax Increment Bonds Issued $ 725,000 $ 1,065,000 Amounts Redeemed 205,000 135,000 Bonds Outstanding - End of Year $ 520,000 $ 930,000 NOTE 15 - COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31, 1993, 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 $118,533. 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 - DEFERRED COMPENSATION PLANS The City offers its employees deferred compensation plans created in accordance with Internal Revenue Code ~ 457. The plans, available to all employees, permit them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseen emergency. -34- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1993 NOTE 16 - DEFERRED COMPENSATION PLANS (CONTINUED) All amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts are solely the property and rights of the City, subject to the claims of the City's general creditors. Participants' rights under the plans are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City has no liability for losses under the plans but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Assets of the plans are held by trustees and are reflected in these statements in an Agency Fund at market value. NOTE 17 - FLEXIBLE BENEFIT PLAN The City offers a flexible benefit plan. The plan is a "cafeteria plan" under ~ 125 of the Internal Revenue Code. All employees who meet the eligibility requirements may participate in the plan. To be eligible an employee must be regularly scheduled to work 40 hours per week. Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the plan for health care, dependent care, and long-term disability benefits. Payments are made from the plan to participating employees upon submitting a request for reimbursement of eligible expenses actually incurred by the participant. All assets of the plan are held by the City. The plan is administered by an independent contract administrator for child care and medical expense reimbursements, and by the City for health insurance premiums. The plan is included in the financial statements as an Expendable Trust Fund. All plan property and income attributable to that property is solely the property of the City, subject to the claims ofthe City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the eligible health care and dependent care expenses incurred by the participants. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. NOTE 18 - SUBSEQUENT EVENT At December 31, 1993, the City of Andover held 187,569 shares of the Piper Jaffray "Institutional Government Income Portfolio Fund." This investment is reported on the City's Combined Balance Sheet at a cost of $2,117,414. As of June 17, 1994, the market value per share of the fund has declined to $8.58 per share. Therefore, the current market value of the City's holdings based on the number of shares held at December 31, 1993 is $1,609,342, resulting in an unrecorded market loss to the City of approximately $508,000. -35- I-'~ I w ~ ~ . it c ~ C C ~ ~ C C C o C C C C C C 1:--::-:.,-----=:;;-- ;1 ~I ~I ;1 ,I !I ~I ;1 II ~I :1 ~I ;1 "I ;1 ~I I ,I I COMBINING AND INDIVIDUAL FUND STATEMENTS m pi ~! i .. I I I ~: ~ I ~I I c' ~ ~ r III c ~ . c ~ w. c ~ c c c " .. -=--,-----;-- - -- L- -~-~- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER General Fund Comparative Balance Sheet As of December 31,1993 and 1992 Assets Cash and temporary investments Receivables Accounts Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Due from other funds Prepaid items 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 -36- 1993 1992 $ 812,937 $ 872,183 31,463 26,495 16,723 12,220 41,422 46,385 16 2,330 836 467 83,333 63,984 20,000 20,000 56,131 1,621 1,479 $ 1,064,482 $ 1,045,543 $ 116,809 $ 138,172 1,966 27,240 17,306 11,715 30,674 86,473 1,000 42,274 49,183 209,029 313,783 855,453 728,760 3,000 855,453 731,760 $ 1,064,482 $ 1,045,543 CITY OF ANDOVER C General Fund m Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December31, 1993 m (with Comparative Actual Amounts for Year Ended December 31,1992) 1993 1992 ~ r, ) Over Ii (Under) ~ Budget Actual Budget Actual Revenue Taxes ad valorem $ 1,296,030 $ 1,241,114 $ (54,916) $ 1,107,808 L Licenses and permits 418,270 470,371 52,101 430,024 Intergovernmental revenue [ Federal CDBG 29,783 29,135 (648) 35,846 State C Local government aid 40,008 40,007 (1) 42,147 HACA and other tax credits 353,989 393,239 39,250 338,314 Street maintenance 140,000 140,000 97,421 t Fire department aid 22,000 32,938 10,938 33,741 Other 72,135 75,591 3,456 66,797 Total intergovern- mental revenue 657,915 710,910 52,995 614,266 C ' , Charges for services General government 29,100 53,206 24,106 38,912 1M Street lights 90,300 93,122 2,822 75,583 III Utility Funds 3,500 6,540 3,040 6,213 Total charges for services 122,900 152,868 29,968 120,708 C Fines and forfeits 40,000 38,178 (1,822) 39,565 Other revenue C Interest earned on investments 44,000 36,938 (7,062) 30,417 Refunds and reimbursements 31,000 33,645 2,645 45,865 C Miscellaneous 9,000 4,929 (4,071 ) 11,088 Total other revenue 84,000 75,512 (8,488) 87,370 Total revenue 2,619,115 2,688,953 69,838 2,399,741 ~ Expenditures General government ~ Council Personal services 20,103 19,912 (191) 15,577 Supplies 300 309 9 217 C Other services and charges 25,230 25,376 146 16,723 Total council 45,633 45,597 (36) 32,517 (continued) C -37- 0 - ---- ~o ! I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance I Budget and Actual (continued) Year Ended December 31, 1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) I 1993 1992 Over I (Under) Budget Actual Budget Actual Expenditures (continued) I General government (continued) Mayor Personal services 4,521 I Elections Personal services 1,669 1,669 15,030 Supplies 38 38 245 I Other services and charges 152 152 911 Total elections 1,859 1,859 16,186 I Newsletter Personal services 1,322 658 (664) 1,287 Supplies 20 53 33 I Other services and charges 4,050 2,065 (1,985) 4,000 Total newsletter 5,392 2,776 (2,616) 5,287 I Administration Personal services 110,120 109,816 (304) 101,478 Supplies 1,350 2,208 858 1,228 I Other services and charges 27,398 26,088 (1,310) 24,557 Capital outlay 800 523 (277) 271 Total administration 139,668 138,635 (1,033) 127,534 I Financial administration Personal services 108,347 107,476 (871) 100,184 Supplies 2,700 2,689 (11) 1,949 I Other services and charges 4,889 4,842 (47) 4,293 Capital outlay 600 (600) 183 Total financial I administration 116,536 115,007 (1,529) 106,609 Assessing I Other services and charges 47,192 47,190 (2) 39,047 Consulting staff I Auditing 10,750 10,750 10,498 Legal 52,560 78,317 25,757 60,720 Total consulting staff 63,310 89,067 25,757 71,218 I ( continued) I -38- CITY OF ANDOVER ~ General Fund ~ Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1993 ~ (with Comparative Actual Amounts for Year Ended December 31,1992) ~ 1993 1992 i. Over (Under) Budget Actual Budget Actual ~ ' , Expenditures (continued) General government (continued) ~ Planning and zoning Personal services 44,879 41,698 (3,181) 44,996 Supplies 1,500 1,551 51 1,217 Other services and charges 6,795 6,061 (734) 5,578 ~ Capital outlay 182 Total planning and zoning 53,174 49,310 (3,864) 51,973 ~ Data processing .. Supplies 19,637 19,538 (99) 17,136 Capital outlay 28,243 ~ Total data processing 19,637 19,538 (99) 45,379 : i Buildings C Administration building Personal services 1,050 1,285 235 7,374 Supplies 5,100 4,237 (863) 4,244 ~ Other services and charges 26,303 23,646 (2,657) 21,099 Capital outlay 27,393 26,179 (1,214) 14,802 Total administra- tion building 59,846 55,347 (4,499) 47,519 ~ . Fire department building Personal services 45 44 (1) 379 ~ Supplies 4,445 5,117 672 3,501 ~ Other services and charges 29,727 33,394 3,667 29,569 Capital outlay 344 (344) .. L. Total fire depart- ' ' ment building 34,561 38,555 3,994 33,449 Public works building C Personal services 4,447 4,991 544 2,670 Supplies 4,675 4,840 165 3,516 ~ Other services and charges 16,218 17,444 1,226 13,918 Total public works building 25,340 27,275 1,935 20,104 PI ~ (continued) C -39- C ~ ~ -- -- - - ---::;:--r I I I I I I I ~I ~I -I ~ I -I I ~I ~I j I : I ~I J : I CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1993 (with Comparative Actual Amounts for Year Ended December 31,1992) Budget Expenditures (continued) General government (continued) Buildings (continued) Senior citizen center Personal services Supplies Other services and charges Total senior citizen center 83 450 8,496 9,029 Storage building Supplies Other services and charges Capital outlay Total storage building 560 3,022 450 4,032 Total buildings 132,808 Engineering Personal services Supplies Other services and charges Capital outlay Total engineering 72,175 1,900 7,380 300 81,755 Total general government 706,964 Public safety Police protection Supplies Other services and charges Total police protection 75 424,929 425,004 Fire protection Personal services Supplies Other services and charges Relief Association Capital outlay Total fire protection 133,910 9,150 72,265 39,500 17,260 272,085 -40- 1993 Actual 82 314 7,849 8,245 85 3,292 3,377 132,799 70,088 4,610 3,702 78,400 720,178 75 424,836 424,911 126,926 11,419 68,994 46,238 18,384 271,961 Over (Under) Budget (1) (136) (647) (784) (475) 270 (450) (655) (2,087) 2,710 (3,678) (300) (3,355) 13,214 (93) (93) (6,984) 2,269 (3,271) 6,738 1,124 (124) 1992 Actual 608 139 5,053 5,800 622 1,415 1,057 3,094 (9) 109,966 56,040 1,924 4,735 62,699 672,936 75 410,855 410,930 113,025 33,066 55,610 47,041 24,734 273,476 (continued) CITY OF ANDOVER ~ General Fund ~ Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31,1993 C (with Comparative Actual Amounts for Year Ended December 31,1992) 1993 1992 ~ Over (Under) ~ Budget Actual Budget Actual ; , Expenditures (continued) Public safety (continued) Rescue service ~ ' , Personal services 20,454 13,900 (6,554) 17,902 Supplies 1,566 1,352 (214) 3,543 Other services and charges 13,235 11,234 (2,001) 9,233 ~ : : Capital outlay 654 Total rescue service 35,255 26,486 (8,769) 31,332 ,. Protective inspection aw Personal services 164,270 164,813 543 124,667 Supplies 6,300 7,897 1,597 7,615 rc Other services and charges 7,336 6,982 (354) 20,824 ' , Capital outlay 22,357 21,670 (687) 21,802 Total protective inspection 200,263 201,362 1,099 174,908 ~ Civil defense Supplies 1,250 966 (284) 1,851 .. Other services and charges 2,222 2,170 (52) 6,058 iI Total civil defense 3,472 3,136 (336) 7,909 Animal control m Personal services 305 313 8 Supplies 175 (175) 137 Other services and charges 9,775 9,202 (573) 9,620 [ Total animal control 10,255 9,515 (740) 9,757 Total public safety 946,334 937,371 (8,963) 908,312 ~ ~ Public works Streets and highways m Personal services 96,399 107,986 11,587 114,870 Supplies 16,635 17,554 919 27,768 Other services and charges 62,813 60,806 (2,007) 42,362 ~ Capital outlay 60,000 60,200 200 17,124 Total streets and highways 235,847 246,546 10,699 202,124 ~ (continued) W -41- ~ --- - .-- ----.0=1- 1;- -- =----=-== I -I I I I I I I I I I I I I I I I I I 1_____ CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31,1993 (with Comparative Actual Amounts for Year Ended December 31,1992) 1993 1992 Over (Under) Budget Actual Budget Actual Expenditures (continued) Public works (continued) Snow and ice removal Personal services 87,065 43,290 (43,775) 32,002 Supplies 45,040 63,749 18,709 91,025 Other services and charges 35,715 34,255 (1,460) 9,836 Total snow and ice removal 167,820 141,294 (26,526) 132,863 Street lighting Other services and charges City 16,750 16,446 (304) 15,425 Billable 56,726 58,357 1,631 44,632 Capital outlay City 2,000 640 (1,360) 1,340 Billable 13,998 15,042 1,044 12,701 Total street lighting 89,474 90,485 1,011 74,098 Street signs/signals Personal services 22,702 17,301 (5,401) 12,222 Supplies 14,995 14,923 (72) 12,140 Other services and charges 1,409 9,678 8,269 8,729 Capital outlay 9,840 575 (9,265) Total street signs/signals 48,946 42,477 (6,469) 33,091 Total public works 542,087 520,802 (21,285) 442,176 Sanitation Storm sewers Personal services 18,491 9,230 (9,261) 11,162 Supplies 2,370 1,929 (441) 1,547 Other services and charges 3,646 14,769 11,123 8,214 Total storm sewers 24,507 25,928 1,421 20,923 (continued) -42- CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) Expenditures (continued) Sanitation (continued) Trees and weed control Personal services Supplies Other services and charges Capital outlay Total trees and weed control Total sanitation Parks and recreation Personal services Supplies Other services and charges Community education programs Assessments Capital outlay Total parks and recreation Recycling Personal services Supplies Other services and charges Capital outlay Total recycling Economic development Personal services Supplies Other services and charges Total economic development 1993 1992 Budget 11,996 750 17,722 30,468 54,975 99,415 12,900 39,279 47,825 21,398 28,475 249,292 14,723 3,500 16,400 11,988 46,611 22,362 300 1,550 24,212 -43- Actual Over (Under) Budget Actual 4,672 (7,324) 4,687 361 (389) 519 5,943 (11,779) 2,381 466 10,976 (19,492) 8,053 36,904 (18,071 ) 28,976 104,414 4,999 82,534 12,388 (512) 21,115 36,885 (2,394) 24,235 47,825 45,068 20,642 (756) 20,642 10,655 (17,820) 10,673 232,809 (16,483) 204,267 14,935 212 13,195 1,683 (1,817) 1,275 20,184 3,784 16,583 13,659 1,671 8,569 50,461 3,850 39,622 22,203 (159) 17,143 276 (24) 153 357 (1,193) 363 22,836 (1,376) 17,659 (continued) ~--------:;~ ------ --- ~ ~ ~ ~ ~ . ~ ~ C ~ r III , . C ~ k' ' .. ~ .. ~ ~ ~ C ~ ,----- 1- __ .- ~~ I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) I Year Ended December 31, 1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) I 1993 1992 Over I (Under) Budget Actual Budget Actual - Expenditures (continued) I Unallocated - ~ CDBG 29,783 31,991 2,208 44,345 Insurance 28,100 20,469 (7,631) 26,804 LRRWMO 4,307 I Waste disp. engineer site 381 381 881 - Miscellaneous 50,850 850 (50,000) 650 Contingency 14,405 (14,405) 73 I Total unallocated 123,138 53,691 (69,447) 77,060 1 , Total expenditures 2,693,613 2,575,052 (118,561 ) 2,391,008 , I 1 Excess (deficiency) of ~ ~ revenue over expenditures (74,498) 113,901 188,399 8,733 ~ I Other financing sources (uses) 1 . Operating transfers in - Capital Project Funds 30,000 30,000 30,000 j I Administrative Trust Fund 67,498 67,498 63,300 i Operating transfers (out) Internal Service Funds (3,000) (3,000) l I Capital Project Funds (20,000) (20,000) ~ Total other financing sources (uses) 74,498 74,498 93,300 - I ~ . Excess of revenue and other - financing sources over I expenditures and other financing uses $ 188,399 $ 188,399 102,033 I Fund balance Beginning of year 731,760 669,727 Residual equity transfers (out) ( 64, 706) (40,000) I End of year $ 855 ,453 $ 731,760 I I I -44- ~ I, CITY OF ANDOVER Special Revenue Funds [ Combining Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) [ C Drainage : ' and Totals Forestry lRRWMO Mapping 1993 1992 m " Assets Cash and temporary investments $ 20,244 $ 5,120 $ 30,025 $ 55,389 $ 43,342 m Receivables Accrued interest 124 1,001 1,125 1,313 W Delinquent taxes 267 267 Due from other governmental units 170 170 Total assets $ 20,244 $ 5,681 $ 31,026 $ 56,951 $ 44,655 C liabilities and Fund Balance C liabili ties Accounts payable $ 6,350 $ $ 1,578 $ 7,928 $ 2,146 Deferred revenue 7,850 267 8,117 C Total liabilities 14,200 267 1,578 16,045 2,146 Fund balance m Umeserved Undesignated 6,044 5,414 29,448 40,906 42,509 Total liabilities C and fund balance $ 20,244 $ 5,681 $ 31,026 $ 56,951 $ 44,655 C ~ m m ~ ' , m -45- m - - -- -- 0' -----l-~=:--------=---=-- I CITY OF ANDOVER I Special Revenue Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance I Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) I Drainage and Totals I Forestry lRRWMO Mapping 1993 1992 Revenue I Taxes ad valorem $ $ 11,647 $ $ 11,647 $ Special assessments 3 3 3 Intergovernmental revenue I Federal ~ Cooperative forestry assistance 12,150 12,150 I State HACA and other tax credits 3,862 3,862 Other revenue I Interest earned on investments 219 22 1,338 1,579 3,663 Miscellaneous 1,119 1,119 Total revenue 13,488 15,531 1,341 30,360 3,666 I Expenditures Public works Interest 590 I Other services and charges 12,150 15,648 12,550 40,348 27,279 - Total expenditures 12,150 15,648 12,550 40,348 27,869 - I - Excess (deficiency) of - revenue over expenditures 1,338 (117) (11,209) (9,988) (24,203) - - - I Other financing sources . - ~ Operating transfers in Debt Service Funds 3,375 3,375 - I Capital Project Funds 304 304 - Total other financing sources 3,679 3,679 - - - - I Excess (deficiency) of . ~ revenue and other financing ~ - ~ sources over expenditures 1,338 (117) (7,530) (6,309) (24,203) - I . Fund balance ~ - Beginning of year 5,531 36,978 42,509 66,712 - Residual equity transfers in 4,706 4,706 I ~ End of year $ 6,044 $ 5,414 $ 29,448 $ 40,906 $ 42,509 ; I ~ - -46- . I ~ I - .. CTIY OF ANOOVER ~ Debt Service Funds C Combining Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) m 1991A Certificates State- m G.O. of Aid Bonds Indebtedness Bonds m Assets Cash and temporary investments (deficit) $ 4,674 $ (4,627) $ 8,330 ; Receivables Accrued interest 310 C Delinquent taxes 8,289 3,145 Delinquent special assessments Deferred special assessments m Due from other governmental units 4,916 1,108 Total assets $ 17,879 $ (374) $ 8,640 m Liabilities and Fund Balance (Deficit) Liabilities ~ Accounts payable $ $ $ Accrued expenses 2,432 164 Deferred revenue 8,289 3,145 ; Arbitrage rebate Total liabilities 10,721 3,309 Fund balance (deficit) C Reserved for debt service 7,158 8,640 Umeserved C Undesignated (3,683) Total fund balance (deficit) 7,158 (3,683) 8,640 Total liabilities and fund balance (deficit) $ 17,879 $ (374) $ 8,640 C C C C C -47- C - -'-, ----- I I I I Tax Special Increment Assessment Totals I Bonds Bonds 1993 1992 I $ 267,661 $ 10,298,385 $ 10,574,423 $ 7,836,876 I 205,471 205,781 135,540 11,434 12,869 34,120 34,120 179,118 I 2,661,099 2,661,099 3,976,360 5,128 11,152 21,660 I $ 267,661 $ 13,204,203 $ 13,498,009 $ 12,162,423 I $ $ $ $ 956 I 12,310 14,906 2,151 2,695,221 2,706,655 4,168,348 553 553 4,443 I 2,708,084 2,722,114 4,175,898 I 267,661 10,510,480 10,793,939 8,332,557 (14,361) (18,044) (346,032) 267,661 10,496,119 10,775,895 7,986,525 I $ 267,661 $ 13,204,203 $ 13,498,009 $ 12,162,423 -I -I c I - - I - ]1 -48- CITY OF ANDOVER C Debt Service Funds C Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1993 (with Comparative Totals for Year Ended December 31, 1992) ~ 1991A Certificates State- ~ G.O. of Aid Bonds Indebtedness Bonds Revenue m Taxes ad valorem $ 303,162 $ 66,533 $ Special assessments Intergovernmental revenue ; State aids 128,605 HACA and other tax credits 98,961 21,573 County reimbursements Other revenue ~ Interest earned on investments 718 Miscellaneous Total revenue 402,123 88,106 129,323 L Expenditures Debt service E Principal retirement 250,000 108,000 100,000 Interest 132,932 22,029 29,500 Arbitrage rebate ~ Other 497 1,316 Total expenditures 383,429 130,029 130,816 Excess (deficiency) of revenue over expenditures 18,694 (41,923) (1,493~ m Other financing sources (uses) Bonds proceeds ~ Operating transfers in Debt Service Funds Capital Project Funds m Enterprise Funds 37,630 Operating transfers (out) Expendable Trust Fund m Special Revenue Funds Capital Project Funds Total other financing sources (uses) 37,630 ~ Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses 18,694 (4,293) (1 ,493~ Fund balance (deficit) m Beginning of year (11,675) 610 10,133 Residual equity transfers in 139 ~ Residual equity transfers (out) End of year $ 7,158 $ (3,683) $ 8,640 m -49- m =--~ ----<i~1 -------- 1:--=~ I I I I Tax Special Increment Assessment Totals Bonds Bonds 1993 1992 I $ $ $ 369,695 $ 379,091 4,609,828 4,609,828 3,002,046 I 128,605 135,920 120,534 120,441 894,366 I 452,927 453,645 360,929 3,108 I 5,062,755 5,682,307 4,895,901 I 695,000 4,595,000 5,748,000 1,556,000 129,825 1,234,105 1,548,391 1,471,167 I 6,378 15,522 32,681 50,016 53,016 840,347 5,861,786 7,346,407 3,086,561 I (840,347) (799,031 ) (1,664,100) 1,809,340 I 50,000 498,000 548,000 50,400 981,920 981,920 7,064 I 1,574,357 1,574,357 37,630 37,630 I (36,673) (36,673) (3,375) (3,375) (256,738) (256,738) I 50,000 2,757,491 2,845,121 95,094 (790,347) 1,958,460 1,181,021 1,904,434 I 1,058,008 6,929,449 7,986,525 6,082,091 I 2,225,208 2,225,347 (616,998) (616,998) I $ 267,661 $ 10,496,119 $ 10,775,895 $ 7,986,525 I -50- c c ~ m ~ ~ ~ .. c .. ~ c ~ c c c ~ c c C D ,- ! I I I I I I -I 31 -I -I -I -I ,I -I jl j I J I ~ J I j I CITY OF ANOOVER 1991A G.o. Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) 1993 1992 Over (Under) Budget Actual Budget Actual Revenue Taxes ad valorem $ 303,320 $ 303,162 $ (158) $ 308,136 Intergovernmental revenue HACA and other tax credits 98,961 98,961 98,402 Interest earned on investments 313 Total revenue 402,281 402,123 (158) 406,851 Expenditures Debt service Principal retirement 250,000 250,000 250,000 Interest 133,125 132,932 (193) 141,599 Other 1,000 497 (503) 657 Total expenditures 384,125 383,429 (696) 392,256 Excess of revenue over expenditures $ 18,156 18,694 $ 538 14,595 Fund balance (deficit) Beginning of year (11,675) (26,270) Residual equity transfers in 139 End of year $ 7,158 $ (11,675) -51- 'i CITY OF ANDOVER ~ Certificates of Indebtedness Debt Service Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual ~ Year Ended December 31, 1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) ~ 1993 1992 Over m (Under) Budget Actual Budget Actual Revenue m Taxes ad valorem $ 66,126 $ 66,533 $ 407 $ 70,955 Intergovernmental revenue m HACA and other tax credits 21,573 21,573 22,039 Total revenue 87,699 88,106 407 92,994 Expenditures C Debt service Principal retirement 108,000 108,000 106,000 m Interest 23,579 22,029 (1,550) 19,034 Total expenditures 131,579 130,029 (1,550) 125,034 Excess (deficiency) of C revenue over expenditures (43,880) (41,923) 1,957 (32,040) Other financing sources C Operating transfers in Enterprise Funds 37,630 37,630 37,630 Excess (deficiency) of C revenue and other financing sources over expenditures $ (6,250) (4,293) $ 1,957 5,590 C Fund balance (deficit) Beginning of year 610 (4,980) C End of year $ (3,683) $ 610 C C C C -52- C --~ -- 1- I I I I I I I I I I I I I I I I I I I CITY OF ANOOVER State-Aid Bonds Debt Service Fund Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) State-Aid Bonds of 1984 Account Assets $ Cash and temporary investments Receivables Accrued interest 286 82 $ Total assets 368 Fund Balance Fund balance Reserved for debt service $ 368 -53- State-Aid Bonds of 1988 Account $ 8,044 228 $ 8,272 $ 8,272 Totals 1993 1992 $ 8,330 $ 10,001 310 132 $ 8,640 $ 10,133 $ 8,640 $ 10,133 CITY OF ANDOVER State-Aid Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) 1993 1992 Actual State-Aid State-Aid Bonds Bonds Over of 1984 of 1988 (Under) Budget Account Account Total Budget Actual Revenue futergovemmental revenue State aids $ 129,650 $ 60,417 $ 68,188 $ 128,605 $ (1,045) $ 135,920 Other revenue futerest earned on investments 244 474 718 718 238 Total revenue 129,650 60,661 68,662 129,323 (327) 136,158 Expenditures Debt service Principal retirement 100,000 50,000 50,000 100,000 100,000 futerest 29,500 9,750 19,750 29,500 36,801 Other 1,300 667 649 1,316 16 1,299 Total expenditures 130,800 60,417 70,399 130,816 16 138,100 Excess (deficiency) of revenue over expenditures $ (1,150) 244 (1.737) (1,493) $ (343) (1,942) Fund balance Beginning of year 124 10,009 10,133 12,075 End of year $ 368 $ 8,272 $ 8,640 $ 10,133 -54- -;- -I [ ~ c t ~ .. c c c c c c c c c c c c c c I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Tax Increment Bonds Debt Service Fund Balance Sheet As of December 31,1993 (with Comparative Totals as of December 31,1992) TIF TIF TIF Project Project Project 1-1 1-1 1-2 1987B 1993B 1987A Totals Account Account Account 1993 1992 Assets Cash and temporary investments $ 105,742 $ 35,248 $ 126,671 $ 267,661 $ 1,058,008 Receivables Delinquent special assessments 71,691 Total assets $ 105,742 $ 35,248 $ 126,671 $ 267,661 $ 1,129,699 liabilities and Fund Balance liabilities Deferred revenue $ $ $ $ $ 71,691 Fund balance Reserved for debt service 105,742 35,248 126,671 267,661 1,058,008 Total liabilities and fund balance $ 105,742 $ 35,248 $ 126,671 $ 267,661 $ 1,129,699 -55- CITY OF ANDOVER Tax Increment Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1993 (with Comparative Actual Amounts for Year Ended December 31, 1992) Budget TIF Project 1-1 1987B Account 1993 Actual TIF Project 1-1 1993B Account TIF Project 1-2 1987A Account Expenditures Debt service Principal retirement Interest Other Total expenditures $ 45,000 $ 650,000 $ $ 45,000 93,463 38,354 91,471 750 14,752 770 139,213 688,354 14,752 137,241 (139,213) (688,354) (14,752) (137,241) 50,000 Excess (deficiency) of revenue over expenditures Other financing sources Bond proceeds Excess (deficiency) of revenue and other financing sources over expenditures 35,248 (137,241) $ (139,213) (688,354) Fund balance Beginning of year 263,912 794,096 End of year $ 105,742 $ 35,248 $ 126,671 -56- ------l---;-~- c ~ C ~ C ~ D C C C C C C C C C, , I r\ ~ c c - I I I I 1992 I I Over (Under) Total Budget Actual I I $ 695,000 $ 650,000 $ 40,000 129,825 36,362 95,212 15,522 14,772 796 I 840,347 701,134 136,008 I (840,347) (701,134) (136,008) I 50,000 50,000 I (790,347) $(651,134) (136,008) I 1,058,008 1,194,016 $ 267,661 $ 1,058,008 I I I I I -57- I CITY OF ANDOVER Special Assessment Bonds Debt Service Fund Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) Assets Cash and temporary investments (deficit) Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units Total assets liabilities and Fund Balance Liabilities Accounts payable Accrued expenses Deferred revenue Arbitrage rebate Total liabilities Fund balance (deficit) Reserved for debt service Undesignated Total fund balance (deficit) Total liabilities and fund balance Improvement Bonds Series 1977A Account Improvement Bonds of 1978 Account Improvement Bonds of 1979 Account $ 692,894 $ 135,089 $ 73,873 19,382 3,403 1,780 532 209,560 35,287 10,226 834 $ 922,368 $ 173,779 $ 86,713 $ $ $ 210,092 35,287 10,226 210,092 35,287 10,226 712,276 138,492 76,487 712,276 138,492 76,487 $ 922,368 $ 173,779 $ 86,713 -58- Improvement Bonds Series 1980C Account ~ : ~. .. C C C C C C C C C C C C C C C C $ $ $ $ ~~-:--------l-=--~=--:: I I I I I -I I I I -I 'I -I - -I - ~I I ~ I 'I ~ -I : I Improvement Bonds Series 1985A Account $ 181,289 4,723 32,648 $ 218,660 $ 32,648 32,648 186,012 186,012 $ 218,660 Improvement Bonds Series 1985B Account $ 8,485 609 5,475 308 $ 14,877 $ 6,084 6,084 8,793 8,793 $ 14,877 Improvement Bonds Series 1986A Account $ 1,051,545 29,731 2,300 17,357 196 $ 1,101,129 $ 19,657 19,657 1,081,472 1,081,472 $ 1,101,129 Improvement Bonds Series 1986B Account $ (2,472) 68,293 421 $ 66,242 $ 12,310 68,293 80,603 (14,361) (14,361) $ 66,242 -59- Refunding Bonds Series 1986C Account $ 1,727,984 44,579 12,067 654,802 2,076 $ 2,441,508 $ 666,869 666,869 1,774,639 1,774,639 $ 2,441,508 (continued) CITY OF ANDOVER Special Assessment Bonds Debt Service Fund Balance Sheet (continued) As of December 31,1993 (with Comparative Totals as of December 31,1992) hnprovement Bonds of 1989 Account Assets Cash and temporary investments (deficit) Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units $ 973,619 27,715 361 199,502 Total assets $ 1,201,197 Liabilities and Fund Balance Liabilities Accounts payable Accrued expenses Deferred revenue Arbitrage rebate T otalliabili ti es $ 199,863 199,863 Fund balance (deficit) Reserved for debt service Undesignated Total fund balance (deficit) 1,001,334 1,001,334 Total liabilities and fund balance $ 1,201,197 -60- hnprovement Bonds Series 1990A Account $ $ $ $ hnprovement Bonds Series 1990B Account ~ to m C C m m m m Q m C C C C; 01 C C C $ $ $ $ --------l:---~...;: I I I I Improvement Improvement 1991B Bonds of Bonds of I G.O. Bonds 1992 1993A Totals Account Account Account 1993 1992 I $ 1,801,753 $ 3,535,396 $ 118,930 $ 10,298,385 $ 6,784,742 I 9,472 58,458 6,228 205,471 135,408 2,445 15,744 62 34,120 107,427 I 259,431 901,398 267,120 2,661,099 3,976,360 685 608 5,128 16,480 I $ 2,073,101 $ 4,511,681 $ 392,948 $ 13,204,203 $ 11,020,417 I $ $ $ $ $ 956 I 12,310 1,782 261,877 917,142 267,183 2,695,221 4,083,787 553 553 4,443 261,877 917,142 267,736 2,708,084 4,090,968 I 1,811,224 3,594,539 125,212 10,510,480 7,263,806 I (14,361 ) (334,357) 1,811,224 3,594,539 125,212 10,496,119 6,929,449 I $ 2,073,101 $ 4,511,681 $ 392,948 $ 13,204,203 $ 11,020,417 I I I I -61- I CITY OF ANDOVER ~ Special Assessment Bonds Debt Service Fund ~ Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1993 : (with Comparative Totals for Year Ended December 31, 1992) Improvement Improvement Improvement t Bonds Series Bonds of Bonds of 1977A 1978 1979 C Budget Account Account Account Revenue Specialassessrnents $ 1,733,720 $ 40,995 $ 9,923 $ 12,039 ~ Intergovernmental revenue County reimbursements Other revenue C Interest earned on investments 421,750 38,567 6,760 3,305 Miscellaneous Total revenue 2,155,470 79,562 16,683 15,344 Expenditures C Debt service Principal retirement 5,300,000 45,000 15,000 25,000 Interest 1,297,647 39,000 7,020 4,062 C ! , Arbitrage rebate Other 9,691 209 400 635 Total expenditures 6,607,338 84,209 22,420 29,697 C Excess (deficiency) of revenue over expenditures (4,451,868) (4,647) (5,737) (14,353) C Other financing sources (uses) Bond proceeds C Operating transfers in Debt Service Funds 981,920 Capital Project Funds 1,574,357 Operating transfers (out) t Expendable Trust Fund (36,673) Special Revenue Funds (3,375) Capital Project Funds (256,738) C Total other financing sources (uses) 2,259,491 Excess (deficiency) of revenue and C other financing sources over expen- ditures and other financing uses $ (2,192,377) (4,647) (5,737) (14,353) Fund balance (deficit) C Beginning of year 716,923 144,229 90,840 Residual equity transfers in Residual equity transfers (out) C End of year $ 712,276 $ 138,492 $ 76,487 C -62- C ---- --~-=-, I I I I 1993 Actual Improvement Improvement Improvement Improvement Improvement Refunding Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series I 1980C 1985A 1985B 1986A 1986B 1986C Account Account Account Account Account Account I $ $ 10,823 $ 5,790 $ 12,681 $ 16,379 $ 319,129 I 7,974 56,832 88,343 18,797 5,790 69,513 16,379 407,472 I I 20,000 190,000 125,000 265,000 210,000 16,250 140,738 88,940 100,264 143,570 I 900 491 904 649 715 37,150 331,229 214,844 365,913 354,285 I (18,353) (325,439) (145,331) (349,534) 53,187 I 312,390 669,530 I I 312,390 669,530 I (18,353) (13,049) (145,331) 319,996 53,187 I 11,401 204,365 21,842 1,226,803 (334,357) 1,721,452 I (11,401) $ $ 186,012 $ 8,793 $ 1,081,472 $ (14,361 ) $ 1,774,639 I (continued) I -63- CITY OF ANDOVER, MINNESOTA C Special Assessment Bonds Debt Service Fund C Statement of Revenue, Expenditures, and Olanges in Fund Balance (continued) Budget and Actual Year Ended December 31, 1993 C (with Comparative Totals for Year Ended December 31, 1992) 1993 C Actual Improvement Improvement Improvement Bonds Bonds Series Bonds Series 1991B ~ 1989 1990A 1990B G.O. Bonds Account Account Account Account Revenue Special assessments $ 189,072 $ 147,348 $ 60,714 $ 668,350 ~ Intergovernmental revenue County reimbursements Other revenue C Interest earned on investments 25,355 5,249 53,572 Miscellaneous Total revenue 214,427 147,348 65,963 721,922 C Expenditures Debt service Principal retirement 300,000 2,500,000 900,000 C Interest 180,011 93,511 54,739 183,600 Arbitrage rebate Other 762 3,142 672 471 C Total expenditures 480,773 2,596,653 955,411 184,071 Excess (deficiency) of C revenue over expenditures (266,346) (2,449,305) (889,448) 537,851 Other financing sources (uses) Bond proceeds C Operating transfers in Debt Service Funds Capital Project Funds 1,574,357 C Operating transfers (out) Expendable Trust Fund Special Revenue Funds C Capital Project Funds Total other financing sources (uses) 1,574,357 Excess (deficiency) of revenue and C other financing sources over expen- ditures and other financing uses (266,346) (874,948) (889,448) 537,851 Fund balance (deficit) C Beginning of year 100,613 422,404 283,851 1,273,373 Residual equity transfers in 1,167,067 452,544 605,597 Residual equity transfers (out) C End of year $ 1,001,334 $ $ $ 1,811,224 C -64- ~ -------'--- ------ - -----------=----------:~ I I I I 1992 Improvement Improvement I Bonds of Bonds of Over 1992 1993A (Under) Account Account Total Budget Actual I $ 2,870,601 $ 245,984 $ 4,609,828 $ 2,876,108 $ 3,002,046 894,366 I 157,761 9,209 452,927 31,177 360,378 3,108 I 3,028,362 255,193 5,062,755 2,907,285 4,259,898 I 4,595,000 (705,000) 1,060,000 182,400 1,234,105 (63,542) 1,178,521 6,378 I 347 22,384 32,681 22,990 50,264 182,747 22,384 5,861,786 (745,552) 2,295,163 I 2,845,615 232,809 (799,031) 3,652,837 1,964,735 I 498,000 498,000 498,000 50,400 981,920 I 1,574,357 7,064 (36,673) (36,673) I (3,375) (3,375) (256,738) (256,738) (296,786) 498,000 2,757,491 498,000 57,464 I 1,958,460 $ 4,150,837 2,022,199 2,548,829 730,809 I 1,045,710 6,929,449 4,907,250 2,225,208 I (605,597) (616,998) $ 3,594,539 $ 125,212 $ 10,496,119 $ 6,929,449 I I -65- CITY OF ANDOVER ~ Capital Project Funds C Combining Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) C City C 1992 1994 Buildings State- Tax Equipment Equipment Construction Aid Increment Assets C Cash and temporary investments (deficit) $ 138,939 $ (80) $ 60,187 $ 38,980 $ 1,559,481 C Receivables Accounts 80 Accrued interest 3,729 101 10,396 48,394 Delinquent taxes 3,851 C Delinquent special assessments Deferred special assessments 26,730 Due from other governmental units 19,628 5,344 C Due from developer 191,244 Prepaid items Total assets $ 142,668 $ $ 60,288 $ 95,734 $ 1,808,314 C Liabilities and Fund Balance Liabilities C Accounts payable $ 23,730 $ $ $ $ 52,891 Contracts payable C Accrued expenses 12,700 Deposits payable 7,000 Arbitrage rebate ~ Due to other funds Deferred revenue 46,358 195,095 Total liabilities 23,730 59,058 254,986 Fund balance (deficit) C Umeserved Designated for capital projects 60,288 468,376 1,553,328 C Designated for equipment 118,938 Undesignated (431,700) Total fund balance 118,938 60,288 36,676 1,553,328 C Total liabilities and fund balance $ 142,668 $ $ 60,288 $ 95,734 $ 1,808,314 C C C -66- C ---- I ---l:---~-=-= - , I I I I Permanent Kelsey Special Improvement Round Lake Totals Park Assessment Revolving Park 1993 1992 I I $ 187,672 $ 2,822,783 $ 561,745 $ 61,975 $ 5,431,682 $ 7,271,243 418 498 15,961 I 3,920 143,467 12,441 1,125 223,573 134,304 3,851 7,645 84,264 24,066 108,330 84,177 756,662 525,641 1,309,033 1,158,711 I 3,861 204 29,037 39,713 191,244 205,314 410 410 I $ 191,592 $ 3,811,447 $ 1,124,515 $ 63,100 $ 7,297,658 $ 8,917,068 I $ 365 $ 60,613 $ 987 $ $ 138,586 $ 220,257 I 334,960 334,960 165,258 1,352 14,052 20,840 7,000 I 3,890 3,890 20,000 20,000 20,000 840,926 549,707 1,632,086 1,482,542 I 365 1,237,851 554,584 20,000 2,150,574 1,908,897 I 191,227 3,529,414 413,811 43,100 6,259,544 7,822,882 156,120 275,058 178,883 (955,818) (1,387,518) (993,594) I 191,227 2,573,596 569,931 43,100 5,147,084 7,008,171 I $ 191,592 $ 3,811,447 $ 1,124,515 $ 63,100 $ 7,297,658 $ 8,917,068 I I I -67- CITY OF ANDOVER Capital Project Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) City 1992 1994 Buildings State— Tax Equipment Equipment Construction Aid Increment Revenue Tax increments $ — $ — $ — $ — $ 691,857 Special assessments — — — 7,722 — Intergovernmental revenue State aid — — — 248,949 — Other revenue Interest earned on investments 8,135 — 288 22,700 120,830 Sale of property _ _ _ _ Park dedication fees Refunds and reimbursements — — — 84,895 — Miscellaneous — — — — 14,069 Total revenue 8,135 — 288 364,266 826,756 Expenditures Capital projects Capital outlay 28,520 — — 55,800 327,108 Interest — — — 24,276 789 Total expenditures 28,520 — — 80,076 327,897 Excess (deficiency) of revenue over expenditures (20,385) — 288 284,190 498,859 Other financing sources (uses) Bond proceeds — — — — 464,069 Operating transfers in Capital Project Funds — — — Debt Service Funds — — — — — Enterprise Funds — — — — — Operating transfers (out) General Fund — — — — (30,000) Special Revenue Funds — — — — — Debt Service Funds — — — — — Capital Project Funds — — — — — Enterprise Funds — — — — — Administrative Trust Fund — — — — — Total other financing sources (uses) — — — — 434,069 Excess (deficiency) of revenue and other financing sources over expen— ditures and other financing uses (20,385) — 288 284,190 932,928 Fund balance (deficit) Q Beginning of year 139,323 — 139 (247,514) 620,400 Residual equity transfers in — — 60,000 — — Residual equity transfers (out) — — ( — — End of year $ 118,938 $ — $ 60,288 $ 36,676 $ 1,553,328 A -68- ~ I I I Permanent Kelsey I Special Improvement Round Lake Totals Park Assessment Revolving Park 1993 1992 $ $ $ $ $ 691,857 $ 630,706 I 446,398 145,542 599,662 1,233,325 248,949 293,406 I 9,296 383,048 37,898 3,100 585,295 322,727 38,228 11 0,366 110,366 113,153 I 84,895 2,772 51,480 68,321 44,826 122,434 880,926 183,440 3,100 2,389,345 2,676,371 I 44,591 3,388,136 88,020 3,932,175 4,687,511 I 25,059 50,124 47,998 44,591 3,413,195 88,020 3,982,299 4,735,509 I 77,843 (2.532,269) 95,420 3,100 (1,592,954) (2,059,138) I 3,106,928 3,570,997 4,908,000 1,097,042 1,097,042 1,548,509 256,738 20,000 276,738 I 20,000 20,000 (30,000) (30,000) I (304) (304) (2,556,277) (2,556,277) (7,064) (1,097,042) (1,097,042) (1,548,509) (30,500) I (938) (938) 806,147 20,000 20,000 1,280,216 4,840,436 I 77,843 (1,726,122) 115,420 23,100 (312,738) 2,781,298 I 113,384 5,466,785 895,654 20,000 7,008,171 4,206,873 11,401 71,401 20,000 I (1,167,067) ( 452,544) (1,619,750) $ 191,227 $ 2,573,596 $ 569,931 $ 43,100 $ 5,147,084 $ 7,008,171 I -69- I CITY OF ANDOVER ~ State-Aid Capital Project Fund ~ Balance Sheet W. As of December 31,1993 (with Comparative Totals as of December 31,1992) C ~ State-Aid State-Aid Revolving Project Totals C Account Account 1993 1992 Assets r Cash and temporary investments (deficit) $ (419,000) $ 457,980 $ 38,980 $ (211,642) .. Receivables ~ Accrued interest 10,396 10,396 6,246 Delinquent special assessments 146 Deferred special assessments 26,730 26,730 14,641 ~ Due from other governmental units 19,628 19,628 26,696 ~ Total assets $ (372,642) $ 468,376 $ 95,734 $ (163,913) PI liabilities and Fund Balance (Deficit) .. liabilities C Accounts payable $ $ $ $ 1,200 Contracts payable 35,805 Accrued expenses 12,700 12,700 5,112 C Deferred revenue 46,358 46,358 41,484 Total liabilities 59,058 59,058 83,601 Fund balance (deficit) C Unreserved Designated for capital projects 468,376 468,376 359,849 C Undesignated (431,700) (431,700) (607,363) Total fund balance (deficit) (431,700) 468,376 36,676 (247,514) Total liabilities and C fund balance (deficit) $ (372,642) $ 468,376 $ 95,734 $ (163,913) C C C C -70- C .- -1 I I I I I I I I I I I I I I I I I I I CITY OF ANOOVER State-Aid Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) Revenue Special assessments Intergovernmental revenue State aid Other revenue Interest earned on investments Refunds and reimbursements Total revenue State-Aid State-Aid Revolving Project Totals ACCDunt Account 1993 1992 $ 7,722 $ $ 7,722 $ 7,792 248,017 932 248,949 292,817 22,700 22,700 14,139 84,895 84,895 255,739 108,527 364,266 314,748 Expenditures Capital projects Capital outlay Interest Total expenditures Excess (deficiency) of revenue over expenditures 55,800 55,800 570,044 24,276 24,276 14,628 80,076 80,076 584,672 175,663 108,527 284,190 (269,924) (607,363) 359,849 (247,514) 22,410 $(431,700) $ 468,376 $ 36,676 $ (247,514) Fund balance (deticit) Beginning of year End of year -71- TIF Project 1-1 Account TIF Project 1-2 Account c ~ ~ ~ CITY OF ANDOVER Tax Increment Capital Project Fund Balance Sheet As of December 31,1993 (with Comparative Totals as of December 31,1992) Totals 1993 1992 ~ Assets Total assets $ 1,054,837 $ 504,644 $ 1,559,481 $ 586,390 34,845 13,549 48,394 26,156 3,851 3,851 7,645 5,344 5,344 9,318 191,244 191,244 205,314 $ 1,098,877 $ 709,437 $ 1,808,314 $ 834,823 ~ Cash and temporary investments Receivables Accrued interest Delinquent taxes Due from other governmental units Due from developer 52,891 7,000 3,851 63,742 212,958 214,423 c c c ~ ~ liabilities and Fund Balance liabilities Accounts payable Deposits payable Deferred revenue Total liabilities 191,244 191,244 $ 52,891 7,000 195,095 254,986 $ 1,465 $ $ Fund balance Unreserved Designated for capital projects 1,035,135 518,193 1,553,328 620,400 ~ ~ Total liabilities and fund balance $ 1,098,877 $ 709,437 $ 1,808,314 $ 834,823 ~ ~ ~ If. i! .. ~ ~ -72- c c c ~ .- ~ ------l--~-== I I I I I I I I -I -I I I I -I -I : I - I ~I - I CITY OF ANDOVER Tax Increment Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) TIP TIP Project Project 1-1 1-2 Totals Account Account 1993 1992 Revenue Tax increments $ 469,710 $ 222,147 $ 691,857 $ 630,706 Intergovernmental revenue State aid 589 Other revenue Interest earned on investments 79,274 41,556 120,830 61,739 Sale of property 38,228 Miscellaneous 14,069 14,069 21,887 Total revenue 548,984 277,772 826,756 753,149 Expenditures Capital projects Capital outlay 296,329 30,779 327,108 20,893 Interest 38 751 789 Total expenditures 296,367 31,530 327,897 20,893 Excess of revenue over expenditures 252,617 246,242 498,859 732,256 Other financing sources (uses) Bond proceeds 464,069 464,069 Operating transfers (out) General Fund (24,000) (6,000) (30,000) (30,000) Total other financing sources (uses) 440,069 (6,000) 434,069 (30,000) Excess of revenue and other financing sources over expen- ditures and other financing uses 692,686 240,242 932,928 702,256 Fund balance (deficit) Beginning of year 342,449 277,951 620,400 (81,856) End of year $ 1,035,135 $ 518,193 $ 1,553,328 $ 620,400 -73- CITY OF ANDOVER Sewer Trunk Account Improvement Bonds Series 1989A Construction Account c c c c c m ~ ~ ~ C Special Assessment Capital Project Fund Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) $ 955,421 $ 331,793 $ 56,237 25,633 84,148 116 692,763 3,841 3,825 36 $ 1,792,394 $ 361,419 $ Water Trunk Account Assets Cash and temporary investments (deficit) Receivables Accounts Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units Prepaid items Total assets Liabilities and Fund Balance (Deficit) Liabilities Accounts payable Contracts payable Accrued expenses Deferred revenue Total liabilities $ 499 776,911 777,410 Fund balance (deticit) Umeserved Designated for capital projects Undesignated Total fund balance (deficit) 1,014,984 1,014,984 Total liabilities and fund balance (deficit) $ 1,792,394 -74- $ 165 o $ 3,957 4,122 c c m m w 357,297 357,297 $ 361,419 $ c c c -=---~- I :-- -l-:---=~::-:; I - - I - I I Improvement Improvement Bonds Bonds -I Series 1992 Series 1993A Unfinanced Construction Construction Improvement Totals Account Account Account 1993 1992 I I $ 848,722 $ 1,507,652 $ (820,805) $ 2,822,783 $ 5,707,817 13,591 I 27,786 33,811 143,467 79,752 84,264 72,626 60,058 756,662 911,682 I 3,861 410 410 3,100 I $ 876,508 $ 1,541,463 $ (760,337) $ 3,811,447 $ 6,788,568 -I $ 6,988 $ 17,958 $ 35,003 $ 60,613 $ 192,295 235,892 99,068 334,960 129,453 I 1,352 1,352 15,728 60,058 840,926 984,307 6,988 253,850 195,481 1,237,851 1,321,783 I I 869,520 1,287,613 3,529,414 5,853,016 (955,818) (955,818) (386,231 ) 869,520 1,287,613 (955,818) 2,573,596 5,466,785 ,I $ 876,508 $ 1,541,463 $ $ 3,811,447 $ 6,788,568 (760,337) I I I -75- I CITY OF ANDOVER C Special Assessment Capital Project Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) C Improvement C Bonds Water Sewer Series 1989A C Trunk Trunk Construction Account Account Account Revenue m Special assessments $ 286,120 $ 9,313 $ Other revenue Interest earned on investments 133,667 56,111 31,934 C Miscellaneous 1,125 7,444 Total revenue 420,912 72,868 31,934 Expenditures C Capital projects Capital outlay 368,009 8,675 C Interest 1,130 Total expenditures 369,139 8,675 Excess (deficiency) of revenue over expenditures 51,773 64,193 31,934 ~ Other financing sources (uses) ~ Bond proceeds Operating transfers in Capital Project Funds Debt Service Funds 194,843 61,895 C Operating transfers (out) , ' Special Revenue Funds Debt Service Funds (1,754,288) (801,989) C Capital Project Funds Enterprise Funds Administrative Trust Fund III! Total other financing sources (uses) (1,559,445) (740,094) I.j Excess (deficiency) of revenue and other C financing sources over expen- ditures and other financing uses (1,507,672) (675,901 ) 31,934 Fund balance (deficit) C Beginning of year 2,522,656 1,033,198 1,135,133 Residual equity transfers (out) (1,167,067) C End of year $ 1,014,984 $ 357 ,297 $ C -76- ~ .~l ---- 1 --~--- Improvement Improvement Bonds Bonds Series 1992 Series 1993A Unfinanced Construction Construction Improvement Totals Account Account Account 1993 1992 ' $ — $ — $ 150,965 $ 446,398 $ 1,077,426 65,815 95,521 — 383,048 194,007 42,911 51,480 10,697 65,815 95,521 193,876 880,926 1,282,130 357,497 817,794 1,836,161 3,388,136 3,863,687 827 23,102 25,059 33,359 358,324 817,794 1,859,263 3,413,195 3,897,046 (292,509) (722,273) (1,665,387) (2,532,269) (2,614,916) — 3,106,928 — 3,106,928 4,728,000 — 1,097,042 1,097,042 1,548,509 ' — — — 256,738 — (304) (304) — _ — _ (2,556,277) (7,064) (1,097,042) (1,097,042) (1,479,787) — — (30,500) — (938) (938) — 2,009,886 1,095,800 806,147 4,759,158 (292,509) 1,287,613 (569,587) (1,726,122) 2,144,212 ' 1,162,029 — (386,231) 5,466,785 3,322,543 — — — (1,167,067) — $ 869,520 $ 1,287,613 $ (955,818) $ 2,573,596 $ 5,466,785 -77- m ' , OTY OF ANDOVER Enterprise Funds ~ Combining Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) ~ Totals C Water Sewer 1993 1992 Assets C Current assets Cash and temporary investments $ 330,264 $ 142,793 $ 473,057 $ 454,238 I Receivables Accounts 74,207 153,085 227,292 198,204 Accrued interest 8,241 4,161 12,402 9,048 C Delinquent special assessments 2,459 2,459 2,387 Deferred special assessments 28,706 28,706 28,640 Due from other governmental units 368 368 11,225 Inventory 5,515 5,515 5,892 C Prepaid items 30,240 30,240 Total current assets 418,227 361,812 780,039 709,634 Property and equipment C Furniture and equipment 314,918 65,494 380,412 285,596 Machinery 898,814 898,814 561,365 C Collection and distribution systems 7,660,844 11,018,681 18,679,525 16,857,488 8,874,576 11,084,175 19,958,751 17,704,449 Less accumulated depreciation 1,156,553 2,023,155 3,179,708 2,772,131 C Net property and equipment 7,718,023 9,061,020 16,779,043 14,932,318 Total assets $ 8,136,250 $ 9,422,832 $ 17,559,082 $ 15 ,641 ,952 Liabilities and Fund Equity C Current liabilities C Accounts payable $ 8,390 $ 5,302 $ 13,692 $ 33,732 Accrued expenses 7,324 5,596 12,920 12,617 Due to other governmental units 352 2,337 2,689 C Deposits payable 62 62 Deferred revenue 138 138 Total current liabilities 16,128 13,373 29,501 46,349 C Fund equity Contributed capital 7,629,246 9,010,559 16,639,805 14,826,847 Retained earnings C Undesignated 490,876 398,900 889,776 768,756 Total fund equity 8,120,122 9,409,459 17,529,581 15,595,603 Total liabilities and fund equity $ 8,136,250 $ 9,422,832 $ 17,559,082 $ 15,641,952 C C -78- C ~ -~ - ~ - -- - -- I I CITY OF ANDOVER I Enterprise Funds Combining Statement of Revenue, Expenses, and Changes in Retained Earnings Year Ended December 31,1993 I (with Comparative Totals for Year Ended December 31,1992) I Totals Water Sewer 1993 1992 Operating revenue I User charges $ 275,584 $ 488,003 $ 763,587 $ 659,266 Meters 53,935 53,935 11,199 Permit fees 22,983 22,983 20,700 Penalties 5,681 9,750 15,431 14,365 I Other 4,646 20,144 24,790 39,237 Total operating revenue 362,829 517,897 880,726 744,767 I Operating expenses Personal services 121,250 57,692 178,942 141,506 Supplies 27,246 6,384 33,630 33,424 - I Meters 42,372 42,372 1,435 - Other services and charges 88,032 16,387 104,419 71,675 Disposal charges 349,459 349,459 248,244 - I Total operating expenses 278,900 429,922 708,822 496,284 - - Operating income before depreciation 83,929 87,975 171,904 248,483 - I Depreciation 195,640 211,937 407,577 377,054 - I Operating loss (111,711) (123,962) (235,673) (128,571) - ~ Other income Interest income 16,202 9,221 25,423 21,603 - I Loss before operating transfers (95,509) (114,741) (210,250) (106,968) I Operating transfers in - Debt Service Funds 30,500 - Operating transfers (out) = = I Capital Project Funds (20,000) (20,000) = i Debt Service Funds (37,630) (37,630) (37,630) - Total operating transfers (20,000) (37,630) (57,630) (7,130) - I ~ Net loss (115,509) (152,371) (267,880) (114,098) j - Add credit for depreciation on contributed assets 181,927 206,973 388,900 367,158 - I - Income closed to retained earnings 66,418 54,602 121,020 253,060 - - - - I Retained earnings ~ ~ ! Beginning of year 424,458 344,298 768,756 545,696 Residual equity transfers (out) (30,000) - I j End of year $ 490,876 $ 398,900 $ 889,776 $ 768,756 - .79- .. I ~ I - CITY OF ANDOVER C Enterprise Funds ~ Combining Statement of Cash Flows Year Ended December 31, 1993 (with Comparative Totals for Year Ended December 31, 1992) m Tota]s Water Sewer 1993 1992 Cash flows from operating activities m Operating loss $ (111,711) $ (123,962) $ (235,673) $ (128,571) Adjustments to reconcile operating loss to net cash provided by operating activities m Prior period adjustment (115,612) Depreciation 195,640 211,937 407,577 377 ,054 Olange in assets and liabilities Receivab]es ~ Accounts 924 (30,012) (29,088) (35,006) De]inquent special assessments (72) (72) 198 Deferred special assessments (66) (66) (11,477) C Due from other governmental units 10.857 10,857 (1,909) Inventory 377 377 1,435 Prepaid items (30,240) (30,240) Accounts payable (20,241 ) 201 (20,040) 26,732 0 Accrued expen ses 603 (300) 303 (1,653) Due to other governmental units 352 2,337 2,689 (357) Deposits payable 62 62 Deferred revenue 138 138 D Net cash provided by operating activities 66,006 40,818 106,824 110,834 Cash flows from capital and related fmancing activities C Acquisition of capital assets (25,053) (27,391) (52,444) (51,993) Cash flows from investing activities Interest received 14,646 7,423 22,069 19,484 C Cash flows from noncapital fmancing activities Operating transfer from Debt Service Funds 30,500 Operating transfer to Capita] Project Funds (20,000) (20,000) C Operating transfer to Debt Service Funds (37,630) (37,630) (37,630) Residual equity transfer to Internal Service Fund (30.000) Net cash used by noncapita] fmancing activities (20,000) (37,630) (57,630) (37,130) C Net increase (decrease) in cash and temporary investments 35,599 (16,780) 18,819 41,195 Cash and temporary in vestments C Beginning of year 294,665 159,573 454,238 413,043 End of year $ 330,264 $ 142,793 $ 473,057 $ 454,238 C , Supplemental schedule of noncash investing, capital, and fmancing activities C Assets contributed by other funds $ 1,142,214 $ 1,059,644 $ 2,201,858 $ 467.233 Prior period adjustments C Assets contributed by customers $ $ $ $ 104.501 Accumulated depreciation on contributed assets (15.]07) Net prior period adjustment $ $ $ $ 89,394 C -80- 0 ------ -- -- -- 1. ---- I I I I I I I I I -I -I I - I - J I -I j '" " I 1 j I J I ! J I -. CITY OF ANDOVER Water Fund Comparative Balance Sheet As of December 31, 1993 and 1992 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 Deposits payable Total current liabilities Fund equity Contributed capital Retained earnings Undesignated Total fund equity Total liabilities and fund equity -81- 1993 1992 $ 330,264 $ 294,665 74,207 75,131 8,241 6,685 5,515 5,892 418,227 382,373 314,918 247,493 898,814 561,365 7,660,844 6,898,451 8,874,576 7,707,309 1,156,553 960,913 7,718,023 6,746,396 $ 8,136,250 $ 7,128,769 $ 8,390 $ 28,631 7,324 6,721 352 62 16,128 35,352 7,629,246 6,668,959 490,876 424,458 8,120,122 7,093,417 $ 8,136,250 $ 7,128,769 CI1Y OF ANDOVER C Water Fund ~ Statement of Revenue, Expenses, and Changes in Retained Earnings Years FndedDecember 31,1993 and 1992 C 1993 1992 ~ Amount Percent Amount Percent Operating revenue User charges $ 275,584 76.0% $ 274,893 87.0 % ~ Meters 53,935 14.9 11,199 3.5 Permit fees 22,983 6.3 20,700 6.6 Penalties 5,681 1.5 5,955 1.9 ~ Other 4,646 1.3 3,172 1.0 Total operating revenue 362,829 100.0 315,919 100.0 Operating expenses C Personal services 121,250 33.4 105,681 33.5 Supplies 27,246 7.5 28,243 8.9 m Meters 42,372 11.7 1,435 0.5 Other services and charges 88,032 24.3 60,675 19.2 Total operating expenses 278,900 76.9 196,034 62.1 Operating income m before depreciation 83,929 23.1 119,885 37.9 Depreciation 195,640 53.9 177,604 56.2 ~ Operating loss (111,711) (30.8) (57,719) (18.3) C Other income Interest income 16,202 4.5 15,809 5.0 C Loss before operating transfers (95,509) (26.3)% (41,910) (13.3)% Operating transfers (out) C Capital Project Funds (20,000) Net loss (115,509) (41,910) C Add credit for depreciation on contributed assets 181,927 169,152 C Income closed to retained earnings 66,418 127,242 Retained earnings 0 Beginning of year 424,458 317,216 Residual equity transfers (out) (20,000) 0 Fnd of year $ 490,876 $ 424,458 C -82- C -- ..;~ I - - l--=-~~:-=- I CITY OF ANDOVER I Water Fund Statement of Cash Flows Years Ended December 31,1993 and 1992 I I 1993 1992 Cash tlows from operating activities Operating loss $ (111,711) $ (57,719) I Adjustments to reconcile operating loss to net cash provided by operating activities Prior period adjustment (115,612) I Depreciation 195,640 177,604 Change in assets and liabilities Receivables I Accounts 924 (20,790) Inventory 377 1,435 Accounts payable (20,241) 21,737 I Accrued expenses 603 (1,862) Due to other governmental units 352 (357) Deposits payable 62 I Net cash provided by operating activities 66,006 4,436 Cash tlows from capital and related financing activities I Acquisition of capital assets (25,053) (33,971 ) - Cash tlows from investing activities Interest received 14,646 14,635 01 Cash tlows from noncapital financing activities Operating transfer to Capital Project Funds (20,000) I Residual equity transfer to Internal Service Fund (20,000) Net cash used by noncapital financing activities (20,000) (20,000) I Net increase (decrease) in cash and temporary investments 35,599 (34,900) - ~ Cash and temporary investments I Beginning of year 294,665 329,565 - End of year $ 330,264 $ 294,665 - I ~ Supplemental schedule of noncash investing, capital, and financing activities - I Assets contributed by other funds $ 1,142,214 $ 349,752 - - I Prior period adjustment ~ Assets contributed by customers $ $ 104,501 Accumulated depreciation on contributed assets (15,107) =j I ,;; Net prior period adjustment $ $ 89,394 " ~ ! -83- 1 I J ~ I CITY OF ANDOVER C Sewer Fund ~ Comparative Balance Sheet As of December 31,1993 and 1992 ~ 1993 1992 ~ Assets Current assets ~ Cash and temporary investments $ 142,793 $ 159,573 Receivables ~ Accounts 153,085 123,073 Accrued interest 4,161 2,363 Delinquent special assessments 2,459 2,387 M Deferred special assessments 28,706 28,640 .. Due from other governmental units 368 11,225 Prepaid items 30,240 m Total current assets 361,812 327,261 Property and equipment C Furniture and equipment 65,494 38,103 Collection system 11,018,681 9,959,037 11,084,175 9,997,140 C Less accumulated depreciation 2,023,155 1,811,218 Net property and equipment 9,061,020 8,185,922 Total assets $ 9,422,832 $ 8,513,183 C liabilities and Fund Equity Current liabilities C Accounts payable $ 5,302 $ 5,101 Accrued expenses 5,596 5,896 C Due to other governmental units 2,337 Deferred revenue 138 Total current liabilities 13,373 10,997 C Fund equity Contributed capital 9,010,559 8,157,888 C Retained earnings Undesignated 398,900 344,298 Total fund equity 9,409,459 8,502,186 C Total liabilities and fund equity $ $ 9,422,832 8,513,183 C C -84- C -~-- ---- --- ---- - I ----l-:-'-=_=_ I CITY OF ANDOVER I Sewer Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended December 31, 1993 and 1992 I I 1993 1992 Amount Percent Amount Percent Operating revenue I User charges $ 488,003 94.2% $ 384,373 89.6 % Penalties 9,750 1.9 8,410 2.0 Other 20,144 3.9 36,065 8.4 I Total operating revenue 517,897 100.0 428,848 100.0 Operating expenses I Personal services 57,692 11.1 35,825 8.3 Supplies 6,384 1.2 5,181 1.2 Other services and charges 16,387 3.2 11,000 2.6 'I Disposal charges 349,459 67.5 248,244 57.9 Total operating expenses 429,922 83.0 300,250 70.0 Operating income before depreciation 87,975 17.0 128,598 30.0 I Depreciation 211,937 40.9 199,450 46.5 I Operating loss (123,962) (23.9) (70,852) (16.5) Other income I Interest income 9,221 1.8 5,794 1.3 Loss before operating transfers (114,741) (22.1 )% (65,058) (15.2)% - I - Operating transfers in - Debt Service Funds 30,500 - I Operating transfers (out) - Debt Service Funds (37,630) (37,630) Total operating transfers (37,630) (7,130) - I Net loss (152,371 ) (72,188) - I Add credit for depreciation on contributed assets 206,973 198,006 - Income closed to retained earnings 54,602 125,818 - I - Retained earnings ~ - Beginning of year 344,298 228,480 - I Residual equity transfers (out) (10,000) ~ End of year $ 398,900 $ 344,298 - - - I J -85- :> I j OJ CITY OF ANDOVER C Sewer Fund C Statement of Cash Flows Years Ended December 31, 1993 and 1992 C 1993 1992 C Cash tlows from operating activities Operating loss $ (123,962) $ (70,852) C Adjustments to reconcile operating loss to net cash provided by operating activities Depreciation 211,937 199,450 ~ Change in assets and liabilities Receivables Accounts (30,012) (14,216) C Delinquent special assessments (72) 198 Deferred special assessments (66) (11,477) Due from other governmental units 10,857 (1,909) C Prepaid items (30,240) Accounts payable 201 4,995 Accrued expenses (300) 209 Due to other governmental units 2,337 C Deferred revenue 138 Net cash provided by operating activities 40,818 106,398 Cash tlows from capital and related financing activities C Acquisition of capital assets (27,391) (18,022) Cash tlows from investing activities C Interest received 7,423 4,849 Cash tlows from noncapital financing activities C Operating transfer from Debt Service Funds 30,500 Operating transfer to Debt Service Funds (37,630) (37,630) U Residual equity transfer to Internal Service Funds (10,000) Net cash used by noncapital financing activities (37,630) (17,130) Net increase (decrease) in cash and temporary investments (16,780) 76,095 C Cash and temporary investments C Beginning of year 159,573 83,478 End of year $ 142,793 $ 159,573 C Supplemental schedule of noncash investing, capital, and financing activities 0 Assets contributed by other funds $ 1,059,644 $ 117,481 C -86- U ------:;=---1- I I I I I I -I -I I - I -I -, i I 11 11 II ~ I j - ]1 JI '" CITY OF ANDOVER Central Equipment Maintenance Internal Service Fund ComparativeBmanceShect As of December 31,1993 and 1992 Assets Cash and temporary investments Receivable Accrued interest Inventory Total assets liabilities and Fund Equity liabilities Accounts payable Accrued expenses Total liabilities Fund equity Contributed capital Retained earnings Umeserved Total fund equity Total liabilities and fund equity -87- 1993 1992 $ 55,755 1,360 21,613 $ 78,728 $ 50,000 $ 50,000 $ 5,399 $ 790 6,189 50,000 50,000 22,539 72,539 50,000 $ 78,728 $ 50,000 CITY OF ANDOVER Central Equipment Maintenance Internal Service Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended December 31, 1993 and 1992 Operating revenue User charges to other City funds 1993 $ 143,948 $ 32,667 57,210 35,289 125,166 18,782 3,757 22,539 Operating expenses Personal services Supplies Other services and charges Total operating expenses Operating income Other income Interest income Net income Retained earnings Beginning of year End of year $ 22,539 -88- --=-----------:;=- ! 1992 $ c c o m m w m c c c c C I c! C C C C C c - ---j; I I I I I I I -I ~ I -I -I ~ I I 11 ~ I ~ I j it " 11 ~ J I I .. CITY OF ANDOVER Centrm Equipment Maintenance Internal Service Fund Statement of Cash Flows Years Ended December 31,1993 and 1992 Cash tlows from operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities Change in assets and liabilities Inventory Accounts payable Accrued expenses Net cash provided by operating activities Cash tlows from investing activities Interest received Cash tlows from noncapital financing activities Residual equity transfer from General Fund Residual equity transfer from Enterprise Funds Net cash provided by noncapital financing activities Net increase in cash and temporary investments Cash and temporary investments Beginning of year End of year -89- :iii 1993 $ 18,782 1992 $ CITY OF ANDOVER Trust and Agency Funds Combining Balance Sheet As of December 31, 1993 (with Comparative Totals as of December 31,1992) Expendable Trust Administrative Flexible Trust Benefits Assets Cash and temporary investments Cash and investments held by trustee Receivable Accrued interest $ 146,175 $ 5,017 Total assets $ 151,192 liabilities and Fund Balance liabilities Accounts payable Deposits payable Deferred compensation payable to employees Total liabilities $ Fund balance Umeserved Designated for employee benefits Designated for assessment administration Undesignated Total fund balance 151,192 151,192 $ 151,192 Total liabilities and fund balance -90- 214 $ 214 $ 214 214 $ 214 c c Compensated Absences o c m c c m m c I C C C C C C C C C $ 5,596 101 $ 5,697 $ 5,697 5,697 $ 5,697 ~ _I ---- I I I I I Totals I Agency 1993 1992 I $ 517,599 $ 669,370 $ 660,050 25,045 25,259 I 5,118 4,544 I $ 542,644 $ 699,747 $ 664,594 ~ I - = $ 4,680 $ 4,680 $ 19,272 I 512,919 512,919 473,650 - 25,045 25,045 - 542,644 542,644 492,922 - I - - ~ I 5,911 - 151,192 171,672 - I 157,103 171,672 ~ - $ 542,644 $ 699,747 $ 664,594 . I i ~ j I ~ = - ] I ~ I " 1 i I ~ , I -91- ~ " 0lY OF ANDOVER Expendable Trust Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year FndedDecember 31, 1993 (with Comparative Totals for Year Fnded December 31, 1992) Administrative Trust Fund Flexible Benefits Fund 1992 Compensated Absences Fund Totals 1993 Revenue Other revenue Interest earned on investments Miscellaneous Payroll withholdings for flexible benefit plan Other Total revenue $ 9,407 $ $ 276 $ 9,683 $ 8,908 6,745 6,745 3,046 19,474 3,046 3,322 9,407 6,745 8,908 Expenditures Miscellaneous Current Employee benefits 6,531 625 7,156 Excess of revenue over expenditures 9,407 214 2,697 12,318 8,908 Other financing sources (uses) Operating transfers in Debt Service Funds General Fund Operating transfers (out) General Fund Total other financing sources (uses) 37,611 37,611 3,000 3,000 (67,498) (29,887) 3,000 (67,498) (63,300) (26,887) (63,300) Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses (20,480) 214 5,697 (14,569) (54,392) Fund balance Beginning of year 171,672 $ 151,192 171,672 226,064 $ 157,103 $ 171,672 $ 214 $ 5,697 Fnd of year -92- c ~ ~ m m c c Q c c: 01 C o C C C ~ ~ o c -- 1-- I CITY OF ANDOVER I Agency Funds Combining Statement of Changes in Assets and liabilities Year Ended December 31,1993 I I Balance Bmance January 1 Additions Deductions December 31 I Escrow Fund Assets I Cash and temporary investments $ 492,922 $ 283,146 $ 258,469 $ 517,599 -I liabili ti es Accounts payable $ 19,272 $ 4,680 $ 19,272 $ 4,680 I Deposits payable 473,650 278,466 239,197 512,919 - Total liabilities $ 492,922 $ 283,146 $ 258,469 $ 517,599 I ICMA Deferred Compensation Fund - I Assets - Cash and investments held by trustee $ $ 25,067 $ 22 $ 25,045 - I liabilities I Deferred compensation payable to employees $ $ 25,067 $ 22 $ 25,045 ~ ~ I Totals - All Agency Funds ~ - Assets - ~ I Cash and temporary investments $ 492,922 $ 283,146 $ 258,469 $ 517,599 ~ Cash and investments held by trustee 25,067 22 25,045 I Total assets $ 492,922 $ 308,213 $ 258,491 $ 542,644 - = - I liabilities ~ j Accounts payable $ 19,272 $ 4,680 $ 19,272 $ 4,680 - I Deposits payable 473,650 278,466 239,197 512,919 1i Deferred compensation payable to employees 25,067 22 25,045 ~ ~ - Total liabilities $ 492,922 $ 308,213 $ 258,491 $ 542,644 j I -93- 11 ~ ~ c c ~ .. ~ m c to m o c c c c c c c c c c - =----------:;::--1 - -- - I -~~-----=-- I -I I I I ~I ~I 01 ] I ~ I i I ! I l I ~ I ~ I 11 JI II il STATISTICAL SECTION (UNAUDITED) c c m ~ m m m m ~ m m ~ u C ! C C C C C C ~ - ..~-- I -- I I I I I -I ~ I ~I il il ~I j I ] I j I il JI II i I JI ~ 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 1993 1,241,114 470,371 710,910 152,868 38,178 75,512 2,688,953 -94- CITY OF ANDOVER c -95- " II m m ~ ~ : m m m c c c c c c c c c c General Fund Expenditures by Function Fiscal General Public Public Parks and Year Government Safety Works Sanitation Recreation 1988 $ 521,775 $ 496,710 $ 333,978 $ 12,030 $ 240,574 1989 645,521 705,415 296,275 18,658 218,571 1990 593,778 754,914 307,046 29,168 261,449 1991 579,797 805,393 374,138 14,831 245,097 1992 672,936 908,312 442,176 28,976 204,267 1993 720,178 937,371 520,802 36,904 232,809 ~- I -------l--:--~ I I I I Recycling $ I 20,112 39,567 - I 46,771 I 39,622 - - 50,461 - I - - - - I - - I - - I - - I - I 5 ~ - - I J - - ~ I 1 ~ ~ I . . 1! - ~ I ;; ] ~ I c,; I 1 ~ , Economic Development $ 14,289 17,447 17,659 22,836 Unallocated Total $ 136,209 $ 1,741,276 97,797 2,002,349 129,589 2,129,800 72,521 2,155,995 77,060 2,391,008 53,691 2,575,052 -96- CITY OF ANDOVER m Tax Levies and Collections C Percentage C Collection Percentage Collection of Total of Current of Levy of Prior Total Collections C Year Total Levy Year's Levy Collected Years' Levy Collections to Levy 1984 $ 645,466 $ 621,184 96.24 % $ 16,627 $ 637,811 98.81 % C 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 m 1988 995,590 978,595 98.29 16,832 995,427 99.98 1989 1,006,409 987,289 98.10 13,439 1,000,728 99.44 1990 993,164 967,055 97.37 22,178 989,233 99.60 C 1991 1,079,510 1,054,361 97.67 21,936 1,076,297 99.70 1992 1,482,416 1,440,883 97.20 22,028 1,462,911 98.68 1993 1,588,431 1,556,622 98.00 31,536 1,588,158 99.98 m Special Assessment Levies and Collections Percentage C, 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 1984 $ 673,732 $ 583,244 86.57 % $ 60,445 $ 643,689 95.54 % C 1985 725,828 660,741 91.03 70,394 731,135 100.73 1986 700,636 662,322 94.53 84,548 746,870 106.60 1987 989,102 903,856 91.38 28,728 932,584 94.29 C 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 C 1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34 1993 816,859 793,128 97.09 68,760 861,888 105.51 C C C C C -97- C --~~ -~ - l:---::---:-=-:::::- I I ~I I I 01 -I =1 ~I :1 ~I ~ I 1 I ~ I 11 ~I ]1 11 ! ]1 ~ CITY OF ANDOVER Computation of Legal Debt Margin December 31, 1993 Market value of taxable property $ 542,411,300 Debt limit (2.00% of market value) $ 10,848,226 Amount of debt applicable to debt limit Total bonded debt $ 24,220,000 Less Bonded debt not repayable solely from tax levies Special Assessment Improvement Bonds 20,460,000 Tax Increment Bonds 1,450,000 State-Aid Street Bonds 310,000 Available in Debt Service Funds 7,158 Net debt applicable to debt limit 1,992,842 Legal debt margin $ 8,855,384 -98- CITY OF ANDOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-1 Year Ended December 31, 1993 Sources of funds Tax increments Special assessments State credits Bond proceeds Land sales Interest Total sources of funds Original Budget $ 8,064,943 4,715,000 97,470 12,877,413 5,200,000 264,000 4,810,000 3,640,686 13,914,686 (1,037,273) Uses of funds Capital outlay Administrative costs and other Debt service Principal Interest and other costs Total uses of funds District balance (deficit) Transfers (to) other funds Remaining funds (deficit) $ (1,037,273) Accounted for in Current Amount Prior Years Year Remaining $ 1,234,339 $ 469,710 $ 6,360,894 5,755 (5,755;' 57,266 (57,266> 205,000 514,069 3,995,931 200,356 (200,356; 135,584 79,274 (117,388; 1,838,300 1,063,053 9,976,060 377,945 296,367 4,525,688 11,101 252,899 205,000 650,000 3,955,000 59,709 53,106 3,527,871 653,755 999,473 12,261,458 1,184,545 63,580 (2,285,398) (48,000) (24,000) 72,000 $ 1,136,545 $ 39,580 $ (2,213,398) SUPPLEMENTAL INFORMATION Name of District Tax Increment District - Development District No. 1-1 Type of District and Authorizing Statutes Redevelopment District established in 1986 under Section 472 of Minnesota Statutes for a duration of 25 years from receipt of first increment. Financing Total bonds issued General Obligation Tax Increment Bonds Series 1987B General Ogligation Tax Increment Bonds Series 1993B Total bonds issued Outstanding Bonds at December 31,1993 -99- $ 205,000 520,000 $ $ 725,000 520,000 ..- ! -- - - --- l c ~ ~ ~ Q C rD ~ .. ,.. iIW m c : m c c c c c c I I I I -I -I I =1 -I -I - ~ I I '1 ~ - ]1 JI JI JI 11 ]1 , CITY OF ANDOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-2 Year Ended December 31, 1993 Accounted Original for in Current Amount Budget Prior Years Year Remaining Sources of funds Tax increments $ 2,200,361 $ 797,646 $ 222,147 $ 1,180,568 State credits 277 (277) Bond proceeds 1,004,500 1,044,126 (39,626) Land sales 7,959 (7,959) Interest 4,500 104,666 41,556 (141,722) Miscellaneous 71,631 14,069 (85,700) Total sources of funds 3,209,361 2,026,305 277,772 905,284 Uses of funds Capital outlay 1,010,375 818,025 31,530 160,820 Administrative costs and other 95,905 29,822 66,083 Debt service Principal 1,025,000 90,000 45,000 890,000 Interest and other costs 1,029,018 528,595 92,241 408,182 Total uses of funds 3,160,298 1,466,442 168,771 1,525,085 District balance (deficit) 49,063 559,863 109,001 (619,801) Transfers to other funds (18,000) (6,000) 24,000 Remaining funds (deficit) $ 49,063 $ 541,863 $ 103,001 $ (595,801 ) 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 $ 930,000 Outstanding Bonds at December 31,1993 -100- . c ~ ~ ~ c, ~ to m c m c '" -- c, c c c c c c - ---l --. I I I I I I I I -I I I ~ I -I 1 I j I SINGLE AUDIT AND OTHER REOUIRED REPORTS ~ I ] I j I 11 c ~ c ~ rQ ~ W m ~ ~ ~ C Q C C C C C C C - - --- - - -,:- r I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA I I I I I I I I -I -I J I ~ I JI il JI 11 !I INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, for the year ended December 31, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government 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. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Andover. The information in this schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. #/4:~' /?~,:&:M June 17, 1994 C:~~E:alO' _c:c:::e>.............--r_......--.-= 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -101- c c ~.. ~ ~ ill r- -- c c ~ !i I .. ~ c ~." iIJ ~ ~ t ~' i, -- fI!II\ ~ c ,.. ... ~ t.I o -I CITY OF ANDOVER =1 Schedule of Federal Financial Assistance Year Ended December 31,1993 -I I Current Year Activity Revenue Federal Federal State Federal GrantorlPass-lhrough CFDA Grant and Grantor/Program Title Number Amount Federal Local Expenditures U.S. Department of Housing and Urban Development Passed 1brough Anoka County Community Development Block Grant 14.218 $ 150,608 $ 29,135 $ 2,126 $ 31,261 Commissioner of Natural Resources Cooperative Forestry Assistance 10.664 $ 20,000 12,150 12,150 Total federal financial assistance $ 41,285 $ 2,126 $ 43,411 ~I -I -I -I I cl 1 I I I I I I 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. I Note 2: Community Development Block Grant revenues and expenditures on the City's financial statements reflect the effects of adjustments to prior years' accruals. I -102- - - ~- I ~ w ~ III ~ ~ ~ ~ ~ .. C I ~ C c c c ~ ill C c . ~ c ----l-----=-~~ I 1 I I I I I I I I PRINCIPALS KENNETH w. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON 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, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. -I I I I ~I il -I jl JI 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, 1993, 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=1E:FrTIFI1E:1:> IP'LJe&L..IC:: ......c:::;c:::;~'-"......,-_......--.-= 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULeVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -103- -I j - I ~ I : I -I i I ~ I j I j I ~ ~ I ~ ] I J I II jl j I 11 ~ I ]1 ~ 11 ~ For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash receiptslrevenue, 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. Also, 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. 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 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. We believe that the reportable conditions described above are material weaknesses. These conditions were 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, 1993, and this report does not affect our reports thereon dated June 17, 1994. 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 June 17, 1994. This report is intended for the information of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. #4~/~~/?k June 17, 1994 -104- " c c c' 01 c c c c c c c C I C I c: i C Cl C1 I Oi I C' - - --=-----------:;;~------ l--=-----=-=- I I I I I I I I I I I I I I I I I I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S 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, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended December 31, 1993, 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-128. 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 June 17, 1994. (continued) C:~~EII:5iD' ......c:c:::c:>LI.....--.-............-.-S. 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -105- ... j J I ~ ;0 I ~ 1 ~ - I - - I ~ - - - I ~ - I = - - I - - = I - - I - I I - I I I I I I I I The management of the City of Andover is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evmuation 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 Reauirements o Political activity Civil rights Cash management Relocation assistance/real property acquisition Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements o o o o o o o Specific Reauirements o Types of services Reporting 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, 1993, the City had no major federal financial assistance programs and expended 70.6 % of its total federal financial assistance under the following nonmaj or federal financial assistance program: Community Development Block Grant (CDBG). (continued) -106- c c c c c c c c ~ I ~ E ~ C E I ~ ~ ~ ~..._~ ---l:---=~ 1 I ~ j 1 .. ~ -. 1 ~ ~ 1 - t 1 ~ ~ 1 J ~ I - - ~ I ~ ] I ~ - I I - , I j , I - I - ~ - I - 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 federm 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. Also, 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. 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 funeti ons. 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 conditions described above are material weaknesses. These conditions were 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, 1993, and this report does not affect our reports thereon dated June 17, 1994. -I I -I 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 June 17, 1994. This report is intended for the information of the City Council and management of the City of Andover, the cognizant audit agency, and other federal-agencies. However, this report is a matter of public record and its distribution is not limited. #I~~'/~?a. 1 -I June 17, 1994 -107- c c c , Cl C C C! C C C m ~ m m I m m ~ I ~ m _-J_ I - - -- 1--:-:- c:---:=-:- - I - I c I - I I I I I I I I I I I I I I I I ~MALLOV KARNOWSKI RAOOSEVICH &CO..P.A. PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKJ, 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 1, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. We conducted our audit in accordance with generally accepted auditing standards and Government Auditine: Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 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 and management of the City of Andover, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. June 17, 1994 #/4:~'/~,;kA1 C=~~EI.~~ .A.c::c::c::>o............-.-..........-r= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESDrA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -108- m ~ c c. ~ c C D ~ ~ C C C C C C C C III ~ c "- . .~ ~_ - l---~ " ~ I - I - - I ~ - - I - - - - I i I - I - - I = - I - PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUIREMENTS 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, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. -I I - I -I -I I 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, 1993: political activity, civil rights, cash management, relocation assistance/real property acquisition, 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, except as noted in the Schedule of Findings. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Andover had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. -I I -#/~~/~~&~ June 17, 1994 -I -I C~~~..~I:JO _~~<:>""""""'T"_......-r= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -109- c C c! m c! I c m c m c m c c m m ~ c ~ c l - - - I :j j . I - - J I - I ~ 1 i I ~ - - = I 1 - - ~ I - - I . = - I - I - I - - I I I I I I I I ~MALLOV KARNOWSKI RAOOSEVICH &CO.,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, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. In connection 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, 1993. 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, 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 and management of the City of Andover, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. ~J/~ ~~~.~~ June 17, 1994 ~~~E:~~ .<tt.c::::c::c:=:>L.J......-r_..........-= 410 PARK NATIONAL BANK BUILDING 5353 WAYZfi.rA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -110- ~ ~ c c m c c c m P!l\ ~ m m tU c C ~ ~ c ~. fI.j :-----l--------== - - - - 1 I j = - ~ I - I - I - I I I I I I I I I I I I I I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH MINNESOTA STATE LAWS AND REGULA nONS 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, 1993, and have issued our report thereon dated June 17, 1994. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining adequate records relating to the fixed assets of the General Fixed Assets Account Group. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Comoliance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes ~ 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 Minnesota Legal Comoliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City of Andover complied with the material terms and conditions of applicable legal provisions, except as noted on 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 ofthe City Council and management of the City of Andover, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. ~~~//~.~?&l June 17, 1994 ~E:R'TIFIE:I:> _......I3L-.~ .A.~~c::;o"""~--r.A.~--r= 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -111- -' I I ~ I I I -I I I I I I I I I I I I I I CITY OF ANDOVER Schedule of Findings Year Ended December 31, 1993 This schedule summarizes findings and questioned costs relating to compliance with Minnesota Statutes and requirements applicable to federal programs. The auditor, Malloy, Karnowski, Radosevich & Co., P .A., is responsible for providing the information under the heading "Finding and Questioned Cost. " The City of Andover is responsible for providing the information under the heading "Corrective Action Plan (CAP)." FINDING AND QUESTIONED COST I. Program/Law Minnesota Statutes ~ 138.17 2. Finding Minnesota Statutes ~ 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. 3. Tvpe of Finding This is a current and prior year finding. 4. Ouestioned Cost None CORRECTIVE ACTION PLAN (CAP) 1. Exolanation of Disagreement With Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding In the future, the City will require any contracted third party used in this capacity to retain these records for the statutory term specified. 3. Official Responsible for Ensuring CAP The Assistant City Engineer, Todd Haas, is the official responsible for ensuring the corrective action for this deficiency. (continued) -112- ~ -_ t m c w m m ~ m m ~ ~ ~ ~ ~ ~ ~ ~ E C E ,- 1 I 1 - - = - I I - I I I I I I I I I I I I I I I I CITY OF ANDOVER Schedule of Findings (continued) Year Ended December 31, 1993 4. Planned Comoletion Date for CAP This policy will be implemented in 1994 by the City. 5. Plan to Monitor Completion of CAP Todd Haas, the Assistant City Engineer, will assure that all required information pertaining to contracting and bidding is on file for the required period of time. -113- m m m ~ m ~ ~ ~ c ~ c c c c ~ ~ ~ C E -------::=-=-T -- , 1 I ~ -j I I - I I I I I I I I I I I I I I I I CITY OF ANDOVER Schedule of Findings (continued) Year Ended December 31, 1993 FINDING AND QUESTIONED COST 1 . Program/Law Federal Financial Assistance Programs - Administrative Requirements (Common Rule) 2. Finding "Common rule" administrative requirements for equipment purchased with federal grant funds require the City to maintain a property management system including detailed fixed asset records and periodic inventories of assets. The City does not maintain detailed fixed asset records. 3. Tvpe of Finding As the City has never maintained auditable fixed asset records, this condition was present in previous years as well as the current year. 4. Ouestioned Cost None CORRECTIVE ACTION PLAN (CAP) 1. Explanation of Disagreement With Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in ResDonse to Finding The City has made the decision that on a Citywide basis it is not cost beneficial to establish and maintain detailed fixed asset records. The City does maintain adequate records for insurance and capital improvement planning purposes, and will continue to do so. However, no effort to establish auditable fixed asset records on a Citywide basis is contemplated at this time. 3. Official Responsible for Ensuring CAP Not applicable 4. Planned Completion Date for CAP Not applicable 5. Plan to Monitor Completion of CAP Not applicable -114-