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Home My WebLink About1994 CAFR I I I I I I I I -I - I -I -I - I - I : I I I 1 I CITY OF ANDOVER Financial Report Year Ended December 31, 1994 J I i I ~ III , , ~ III ... ~ o m mi. I : I I I I ~: I m! I: m c c o c c c c c M. .. ~ - >--I I I I I I I I I I - I -I I .1 - ~ I l j I ~ I i J J I 11 1 "I J j 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 Funds 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 1 2-3 4-7 8-9 10-11 12 13 14 - 39 40 41 - 48 49 50 51 - 52 53 - 54 55 56 57 58 . ~ ~ .. [ to W m o m c 01 C o o o ~ ~ c i ,., ~ 01 I U - --- t--l~-l I I I I I I -I -I I -I =, I ~I ,I 11 J ~ 11 1 j I ~ 11 I. , CITY OF ANDOVER Financial Report Table of Contents (continued) Page COMBINING AND INDIVIDUAL FUND STATEMENTS (CONTINUED) Debt Service Funds (continued) Tax Increment Bonds Debt Service Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Special Assessment Bonds Debt Service Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Project Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures, and Changes in Fund Balance State-Aid Capital Project Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance Tax Increment Capital Project Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance Special Assessment Capital Project Fund Balance Sheet Statement of Revenue, Expenditures, and Changes in Fund Balance Enterprise Funds Combining Balance Sheet Combining Statement of Revenue, Expenses, and Changes in Retained Earnings Combining Statement of Cash Flows Water Fund Comparative Balance Sheet Statement of Revenue, Expenses, and Changes in Retained Earnings Statement of Cash Flows Sewer Fund Comparative Balance Sheet Statement of Revenue, Expenses, and Changes in Retained Earnings Statement of Cash Flows Central Equipment Maintenance Internal Service Fund Comparative Balance Sheet Statement of Revenue, Expenses, and Changes in Retained Earnings Statement of Cash Flows 59 60 - 61 62 - 65 66-69 70 - 71 72 - 73 74 75 76 77 78 - 79 80 - 81 82 83 84 85 86 87 88 89 90 91 92 93 III ~ III , -- r-\ .. c C I C ~ ilIi c c c o o ~ .. ~' Li ,. - .. .. ~ .. jIII\ ... 1.--4_ 1- I I I I I I I I -I -I I -I II 11 i I ] I i I 11 11 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 94 - 95 96 97 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 98 99 - 100 101 102 103 104 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 105 106 107 - 108 109 - 111 112 113 114 115 116-118 ~ .. r ... r .. .. ~ c ~ ~ o c c c o 0, I ~' Wi i C fI\ i./ ~ i' , .. ~ U ~ ... ~ -~l I I I I I I I I -I ~ I -I } I 11 i ~I "i II II ] I ~ 1 ~ I 1 I 1 CITY OF ANDOVER Elected and Appointed Officials December 31, 1994 Term of Office Expires Last Business Day of December Elected Mayor J. E. McKelvey 1996 Council Marjorie Perry Donald Jacobson Larry Dalien Mike Knight 1994 1996 1994 1996 Appointed Richard Fursman - City Administrator Daryl E. Sulander - Finance Director (Ending in 2/95) Jean Nichols - Finance Director (Beginning in 2/95) Shirley Clinton - Treasurer Victoria Volk - Clerk -1- r ~ ~. * ~ m w c m m ~.' . ~ c c c c o c c ~ '- o o -- ----=-r-- -- -- I I I I I ~I -I ~I ~I ~I ] I ] I ~ I 11 J I J I J II i I j 1 I 11 ~ FINANCIAL SECTION M ~ r- - m o ~ .. m 0, ! 0: : I C C i ~i ~ 0, 01 c ~ t.i c ~ w 0,' , i ~ iI.J ----=--,------ I I I I I I I 0 I I I I - - I - I 0 I , - I j I - " I , i . - - I i ~ . I . ! ~ PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNQWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1994, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The general purpose financial statements include the financial activities and balances of the City's General Fixed Assets Account Group, all of which are unaudited. We were unable to audit the General Fixed Assets Account Group because the City has not maintained detailed accounting records of its general fixed assets. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to audit general fixed assets, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Andover at December 31, 1994, 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. One of the City's investments incurred a substantial decrease in market value. The City has continued to carry this investment at cost based on certain circumstances and assumptions as further explained in Note 18 to the financial statements. (continued) CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -2- r- .. c ~ -- m ~., -- c o i 11' .. o c c ,. ~i o C C o ~' W ,. '- c , --- I I I I I I -I I - I ~ I - j I '1 ~ I J I ~ ~ I II jl . 11 ~ . ~I ~ , , Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund statements as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical information as listed in the table of contents is not necessary for a fair presentation of the general purpose financial statements, but is presented as additional analytical data. This information is unaudited and we do not express an opinion on it. #4~~~/~~~ May 16, 1995 -3- o m ~ .. c m c c c c c o c o c c c c .. i-. ~ I! , .. -----;::---~~ I I I I I I I I I I I I I I I I I I I GENERAL PURPOSE FINANCIAL STATEMENTS CIlY OF ANDOVER Combined Balance Sheet All Fund Types and Account Groups As of December 31,1994 (with Comparative Totals as of December 31, 1993) Governmental Fund Types General Special Revenue Assets and Other Debits Assets Cash and temporary investments Cash and investments held by trustee Investments Receivables Accounts Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Due from other funds Due from developer Prepaid items Inventory Property, plant, and equipment, net of accumulated depreciation Other debits Amount available in Debt Service Funds Amount to be provided for long-term debt Debt Service Total assets and other debits $ 1,189,819 $ 122,155 $ 12,315,836 See notes to financial statements -4- ------=--~--=-l Capital Project c ~ w.- e c c c c c c c ~ c c o o c o o o $ 8,235,598 I I I I Proprietary Fiduciary Totals Fund Types Fund Type Account Groups (Memorandum Only) General General I Internal Trust and Fixed Assets Long-Term Enterprise Service Agency (Unaudited) Debt 1994 1993 I I $ 658,847 $ 71,185 $ 903,499 $ $ $ 16,438,647 $ 18,072,613 56,027 56,027 25,259 2,293,305 I 274,448 181 7,624 328,097 259,253 10,918 822 4,426 305,697 466,082 61,436 56,974 - I 3,703 153,743 144,925 . 8,462 3,749,519 3,999,674 381 213,014 124,060 ~ 20,000 20,000 - I " 177,544 191,244 35,703 101,228 86,781 I 6,106 22,564 30,047 28,749 j 16,440,501 5,926,180 22,366,681 22,408,838 - )1 10,038,090 10,038,090 10,775,895 14,136,655 14,136,655 13,995,030 ~ I ~ $ 17,439,069 $ 94,752 $ 971,576 $ 5,926,180 $ 24,174,745 $ 70,469,730 $ 70,655,377 - 1 I j ~ .. . I ~ ~ J I J ~ " JI (continued) "Ii 11 -5- 11 CITY OF ANDOVER Combined Balance Sheet (continued) All Fund Types and Account Groups As of December 31, 1994 (with Comparative Totals as of December 31,1993) General Liabilities, Equity, and Other Credits Liabilities Accounts payable Contracts payable Accrued items Due to other funds Due to other govermnental units Deposits payable Deferred revenue Arbitrage rebate Contracts for deed Bonds and certificates payable Deferred compensation payable to employees Total liabilities 203,943 Equity and other credits Investment in general fixed assets Contributed capital Retained earnings - unreserved Fund balance (deficit) Reserved for debt service Reserved for long-term investments Unreserved Designated for employee benefits Designated for assessment administration Designated for working capital Designated for capital projects Designated for equipment Undesignated Total equity and other credits 225,432 Total liabilities, equity, and other credits See notes to financial statements -6- Governmental Fund Types Special Revenue 24,516 Debt Service 2,277,746 8,535,835 1,552,797 I---J=----l !Ill ~ .. .. c Capital Project !Ill -. r .. ~ m c Q m c 2,308,768 515,076 c c c c C, I fill .. ~ WI ~I ~ I I I I I I I I I I c I ~I I :1 I -I i I -I ~ I , Proprietary Fund Types Enterprise Internal Service $ 12,381 $ 9,895 17,100 752 2,526 75 1,382 33,464 16,272,592 1,133,013 17,405,605 $ 17,439,069 10,647 50,000 34,105 84,105 $ 94,752 Fiduciary Fund Type Trust and Agency $ 552 667,163 52,547 720,262 20,628 230,686 251,314 $ 971,576 Account Groups General General Fixed Assets Long-Term (Unaudited) Debt $ 5,926,180 5,926,180 $ 147,080 102,142 25,523 23,900,000 24,174,745 $ 5,926,180 $ 24,174,745 -7- Totals (Memorandum Only) 1994 $ 596,385 138,743 142,600 20,000 32,222 667,238 4,174,390 4,443 25,523 23,900,000 52,547 29,754,091 5,926,180 16,322,592 1,167,118 8,535,835 2,293,305 20,628 230,686 760,444 5,456,612 46,328 (44,089) 40,715,639 $ 70,469,730 1993 $ 447,675 336,926 143,136 20,000 33,363 519,981 4,389,270 4,443 39,182 24,488,000 25,045 30,447,021 5,629,795 16,689,805 912,315 10,793,939 5,911 151,192 855,453 6,259,544 275,058 (1,364,656) 40,208,356 $ 70,655,377 CITY OF ANDOVER C Combined Statement of Revenue, Expenditures, and Changes in Fund Balance All Governmental Fund Types and Expendable Trust Funds Year Ended December 31, 1994 (with Comparative Totals for Year Ended December 31, 1993) Governmental Fund Types Special Debt Capital General Revenue Service Project Revenue Taxes ad valorem $ 1,472,108 $ 12,123 $ 338,888 $ - Tax increments - - - 707,388 Special assessments - 3 3,682,954 653,904 Licenses and permits 410,733 - - - Intergovernmental 745,156 12,025 264,282 702,030 Charges for services 227,960 - - - Fmes and forfeits 40,496 - - - Other Interest earned on investments 43,043 3,862 564,649 248,208 Park dedication fees - - - 140,074 Refunds and reimbursements 43,104 - - - Miscellaneous 5,176 3,009 23 109,165 Total revenue 2,987,776 31,022 4,850,796 2,560,769 Expenditures Current General government 804,726 - - - Public safety 970,174 - - - Public works 625,805 51,887 - - Sanitation 51,522 - - - Parks and recreation 294,158 - - - Recycling 49,574 - - - Economic development 21,916 - - - Q Unallocated 86,278 - - - Miscellaneous - - - - Capital projects - - - 5,249,436 Debt service Principal - - 6,468,000 - Interest and other - - 1,391,180 - Total expenditures 2,904,153 51,887 7,859,180 5,249,436 i Excess (deficiency) of revenue over expenditures 83,623 (20,865) (3,008,384) (2,688,667) Other financing sources (uses) Band and certificate proceeds (net) - - 952,373 4,891,228 Sale of property - 53,041 - 26,786 Operating transfers in 95,000 24,557 2,001,492 2,471,310 Operating transfers (out) (48,200) - (912,039) (3,692,158) G Total other financing sources (uses) 46,800 77,598 2,041,826 3,697,166 Excess (deficiency) of revenue and other O financing sources over expenditures and other financing uses 130,423 56,733 (966,558) 1,008,499 i Fund balance Beginning of year 855,453 40,906 10,775,895 5,147,084 Residual equity transfers in - - 1,274,326 - Residual equity transfers (out) - - (1,045,573) (228,753) End of year $ 985,876 $ 97,639 $ 10,038,090 $ 5,926,830 i See notes to financial statements I I I Fiduciary Totals Fund Type (Memorandum Only) Expendable I Trust 1994 1993 $ $ 1.823.119 $ 1,622,456 707,388 691.857 I 4,336,861 5.209,493 410.733 470.371 1,723,493 1,225.010 I 227,960 152,868 40,496 38,178 8,364 868.126 1.087.140 I 140.074 110.366 43.104 118.540 17,028 134,401 84.160 25,392 10,455.755 10.810,439 I 804.726 720.178 I 970.174 937.371 677.692 561.150 51.522 36,904 I 294.158 232,809 49,574 50,461 21.916 22.836 86,278 53.691 I 5.649 5,649 7.156 5,249,436 3.982.299 - 6.468.000 5.748,000 I 1,391.180 1.598,407 5,649 16,070,305 13,951,262 19.743 (5.614.550) (3.140,823) I 5,843,601 4,118.997 I 79,827 - 139,468 4.731.827 4.129,475 - ( 65.000) (4,717,397) (4,071,845) 74,468 5,937,858 4,176.627 - I 94,211 323.308 1,035.804 - I 157,103 16,976.441 15.940,637 1.274,326 2.301,454 I (1.274.326) (2.301.454) $ 251.314 $ 17,299,749 $ 16,976,441 - I -9- 0; I CITY OF ANOOVER Combined Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual General and Debt Service Funds Year Ended December 31. 1994 General Fund Over (Under) Budget Actual Budget $ 1,491,885 $ 1,472,108 $ (19,777) 352,740 410,733 57,993 743,497 745,156 1,659 186,473 227,960 41,487 40,000 40,496 496 33,000 43,043 10,043 31,844 43,104 11.260 4,600 5,176 576 2,884,039 2,987,776 103,737 95,000 95,000 (48,200) (48,200) 46,800 46,800 $ 130,423 $ 130,423 855,453 Revenue Taxes ad valorem Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Other Interest earned on investments Refunds and reimbursements Miscellaneous Total revenue Expenditures Current General government Pu blic safety Pu blic works Sanitation Parks and recreation Recycling Economic development Unallocated Debt service Principal Interest and other Total expenditures 817,464 956,659 638,515 60,750 298,292 44,515 22,318 92,326 2,930,839 Excess (deficiency) of revenue over expenditures (46,800) Other fmancing sources (uses) Bond and certificate proceeds (net) 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 fmancial statements -10- 804,726 970,174 625,805 51,522 294,158 49,574 21,916 86,278 2,904,153 83,623 $ 985,876 ~...=-I o ~ ~ .w c c m m m (12,738) 13,515 (12,710) (9,228) (4,134) 5,059 (402) (6,048) m Q ~ .. (26,686) m 130,423 Q c ~ ~ ~ l.l c c c I I I Debt Service Funds I Over (Under) Budget Actual Budget I $ 340,683 $ 338,888 $ (1,795) 1,406,500 3,682,954 2,276,454 I 265,221 264,282 (939) I 295,270 564,649 269,379 23 23 I 2,307,674 4,850,796 2,543,122 I I I 5,583,000 6,468,000 885,000 1.399,670 1,391,180 (8,490) I 6,982,670 7,859,180 876,510 (4,674,996) (3,008,384 ) 1,666,612 I 952,373 952,373 1,676,492 2,001.492 325,000 I (912,039) (912,039) 764,453 2,041.826 1,277,373 I $ (3,910,543) (966,558) $ 2,943,985 I 10,775,895 1,274,326 (1,045,573) I $ 10,038,090 I -Il- I ~ CIlY OF ANDOVER i .. Combined Statement of Revenue, Expenses, and Changes in Retained Earnings ~ Proprietary Fund Types Year Ended December 31, 1994 W.I (with Comparative Totals for Year Ended December 31,1993) Totals m Internal (Memorandum Only) Enterprise Service 1994 1993 C Operating revenue User charges $ 962,019 $ 166,770 $ 1,128,789 $ 907,535 Meters 48,238 48,238 53,935 ~ Permit fees 18,200 18,200 22,983 Penalties 19,279 19,279 15,431 .. Other 3,520 124 3,644 24,790 Total operating revenue 1,051,256 166,894 1,218,150 1,024,674 ~ Operating expenses Personal services 204,836 43,978 248,814 211,609 C Supplies 37,084 80,784 117,868 90,840 Meters, etc. 599 599 42,372 Other services and charges 94,728 42,498 137,226 139,708 C Disposal charges 362,880 362,880 349,459 Capital outlay 32,193 32,193 Total operating expenses 700,127 199,453 899,580 833,988 C Operating income (loss) before depreciation 351,129 (32,559) 318,570 190,686 Depreciation 441,032 441,032 407,577 C Operating loss (89,903) (32,559) (122,462) (216,891) Other income C Interest income 23,557 925 24,482 29,180 Loss before operating transfers (66,346) (31,634) (97,980) (187,711) C : I Operating transfers in 43,200 43,200 Operating transfers (out) (57,630) (57,630) (57,630) C Total operating transfers (57,630) 43,200 (14,430) (57,630) Net income (loss) (123,976) 11,566 (112,410) (245,341) C Less contributed asset additions (44,638) (44,638) Add credit for depreciation on contributed assets 411,851 411,851 388,900 C Income closed to retained earnings 243,237 11,566 254,803 143,559 Retained earnings C Beginning of year 889,776 22,539 912,315 768,756 End of year $ 1,133,013 $ 34,105 $ 1,167,118 $ 912,315 C See notes to financial statements C -12- C l---oi~l I CITY OF ANDOVER Cbmbined Statement of Cash Flows I Proprietary Fund Types Year Ended December 31, 1994 (with Cbmparative Totals for Year Ended December 31, 1993) I Totals Internal (Memorandum Only) I Enterprise SeIVice 1994 1993 Cash flows from operating activities Operating loss $ (89,903) $ (32,559) $ (122,462) $ (216,891) I Adjustments to reconcile operating loss to net cash provided (used) by operating activities Depreciation 441,032 441,032 407,577 I Change in assets and liabilities Receivables Accounts (47,156) (181 ) (47,337) (29,088) Delinquent special assessments (1,244) (1,244) (72) I Deferred special assessments 20,244 20,244 (66) Due from other governmental units (13) (13) 10,857 Prepaid items (5,463) (5,463) (30,240) I Inventory (591 ) (951) (1,542) (21 ,236) Accounts payable (1,311 ) 4,496 3,185 (14,641) Accrued items 4,180 (38) 4,142 1,093 Due to other governmental units (163) (163) 2,689 I Deposits payable 13 13 62 Deferred revenue 1,244 1,244 138 Net cash provided (used) I by operating activities 320,869 (29,233) 291,636 110,182 Cash flows from capital and related financing activities Acquisition of capital assets (102,490) (102,490) (52,444) I Cash flows from investing activities Interest received 25,041 1,463 26,504 24,466 I Cash flows from noncapital financing activities Operating transfers in 43,200 43,200 Operating transfers (out) (57,630) (57,630) (57,630) I Net cash provided (used) by noncapital financing activities (57,630) 43,200 (14,430) (57,630) I Net increase in cash and temporary investments 185,790 15,430 201,220 24,574 Cash and temporary investments I Beginning of year 473,057 55,755 528,812 504,238 End of year $ 658,847 $ 71,185 $ 730,032 $ 528,812 I Supplemental schedule of noncash investing, capital, and financing activities I Assets contributed by other funds $ $ $ $ 2,201,858 I See notes to financial statements -13- I -I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements December 31, 1994 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. Based on these criteria, the Andover Economic Development Authority (EDA) is included as a component unit of the City. Because the EDA's board is made up of Andover's mayor and councilmembers, its financial data has been blended with that ofthe City (Le., reported as though its funds were funds of the City). 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. -14- CITY OF ANDOVER ~ [ Notes to Financial Statements (continued) December 31, 1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c 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. c 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). r'I III 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. c c c c c c c 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 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. -15- c c c c o ~ 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. --~-, 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, 1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus The measurement focus of a fund determines what the fund measures. 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. 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. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 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. -16- CITY OF ANDOVER [ Notes to Financial Statements (continued) December 31, 1994 ~ III NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ~ ij., 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 is recognized when due. C L 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. The City applies all applicable pronouncements of the Financial Accounting Standards Board in accounting and reporting for its proprietary operations. ,. -. Budgeted appropriations (including operating transfers out) shown are as originally adopted except for the following mid-year budget amendments: L C C ~ C C C o C 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. 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 1994 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. Original Budget Amendments Amended Budget .. I. General Fund $ 2,828,334 $ 150,705 $ 2,979,039 -17- ~ : c - - -r'=--o- 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, 1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Property Taxes Property tax levies are set by the City Council in December 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. A portion of the property taxes levied is paid by the State of Minnesota through Homestead and Agricultural Credit Aid (HACA) which is included in intergovernmental revenue in the financial statements. The county spreads all levies over taxable property. Such taxes become a lien on January I and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year collectible. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable. Revenue from property taxes which is not collected within 60 days of year-end is deferred since it is not available to meet obligations of the current year. Real property taxes may be paid by taxpayers in two equal installments on May IS and October IS. Personal property taxes are due in full on May IS. The county provides tax settlements to cities and other taxing districts several times throughout the year. 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 (unremitted) 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. -18- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Proprietary Fund Type - Fixed assets ofthe 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, the liability for vacation pay is recognized in the General Fund to the extent it is expected to be paid from expendable available financial resources, 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. 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. -19- -~-~~---.=o~- ~ ill. C t C . ij. " ~ C t t C C C C C C C ~ C o I -I -I I I I 'I I !! ~I ~ . I j ~ I ~ i I 1 I It I I 11 it II I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 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 tirst 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 $1,526,399, while the balance on the bank records was $1,699,851. 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. B. Investments 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. -20- CITY OF ANDOVER [ ~ ~ Notes to Financial Statements (continued) December 31, 1994 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) 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. III I'i . ~ ~ Deposits and investment balances at December 31, 1994 are as follows: ~ ~ Custodial Credit Risk Category Carrying Market 1 2 3 Value Value U.S. government securities $ 6,964,638 $ - $ 1,702,921 $ 8,667,559 $ 8,128,909 Commercial paper 3,610,546 983,588 4,594,134 4,639,266 $ 10,575,184 $ - $ 2,686,509 13,261,693 12,768.175 c ~ .. Unclassified - investment pools U.S. government security mutual funds Held by trustees ~ ~ 3,943,860 3,124,958 56,027 56,027 o o Total investments 17,261,580 $ 15,949,160 Deposits 1,526,399 Total deposits and investments $ 18,787,979 ~ I. Deposits and investments are reported on the City's combined balance sheet as follows: Cash and temporary investments Cash and investments held by trustee Investments $ 16,438,647 56,027 2,293,305 c c C' C Total deposits and investments $ 18.787,979 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, 1994, the remaining principal due of $177,544 is offset by deferred revenue as it is not available to finance current activities. r- !. c -21- u ---'----.=i ~I ]1 . ~I j ~I ,I ~ I 'I ~ jl ]1 ~ I ~I , ~I ! II I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 4 - DUE FROM OTHER GOVERNMENTAL UNITS The amounts due from other governmental units at December 31, 1994 are comprised of the following: Due from State of Minnesota State share of street improvement projects $ 102,372 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 26,873 9,971 37,979 32,275 3,544 110,642 Total from all sources $ 213,014 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 $ 391,823 $ 91,079 $ 482,902 Machinery 898,814 898,814 Collection and distribution systems 7,660,844 11,018,681 18,679,525 8,951,481 11,109,760 20,061,241 Less accumulated depreciation 1,365,881 2,254,859 3,620,740 $ 7,585,600 $ 8,854,901 $ 16,440,501 -22- CITY OF ANDOVER I L I C I C r ., I C' Notes to Financial Statements (continued) December 31, 1994 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 $ 1,044,468 $ 68,086 $ 22,250 $ 1,090,304 Buildings and improvements 1,788,116 146,312 1,934,428 Furniture and equipment 356,803 77 ,311 434,114 Machinery and automotive equipment 2,440,408 26,926 2,467,334 $ 5,629,795 $ 318,635 $ 22,250 $ 5,926,180 NOTE 6 - LONG-TERM DEBT A. Summary of Changes in Long-Term Debt t, I [, I, [ [ ~ The following is a summary of changes in long-term debt of the City for the year ended December 31, 1994: Balance Balance Beginning New Debt Debt End of of Year Issues Retired Year General long-term debt General Obligation Bonds $ 24,220,000 $ 5,730,000 $ 6,360,000 $ 23,590,000 Certificates of Indebtedness 268,000 150,000 108,000 310,000 Assessments on City property 160,581 13,501 147,080 Contracts for deed payable 39,182 13,659 25,523 Compensated absences payable 83,162 18,980 102,142 Total generallong-term debt $ 24,770,925 $ 5,898,980 $ 6,495,160 $ 24,174,745 ~ ~ C c m m c c -23- ~ ~ ----f;;....-lI=! I CITY OF ANDOVER I Notes to Financial Statements (continued) December 31, 1994 I NOTE 6 - LONG-TERM DEBT (CONTINUED) I B. Components of Long-Term Debt Final Balance I Original Interest Issue Maturity at Issue Rate Date Date Year-End General long-term debt I General Obligation Bonds Special Assessment Bonds ~~ '-1-1977 Improvement Bonds of Series 1977 A $ 1,215,000 5.00% 1-1-2006 $ 685,000 Improvement Bonds of 1978 $ 270,000 5.25-6.00% 11-1-1978 2-1-1999 95,000 I Improvement Bonds of 1979 $ 270,000 6.50% 10-1-1979 2-1-1995 25,000 Improvement Bonds of Series 1985A $ 300,000 8.25-9.60% d\-1-1985 2-1-2000 145,000 Improvement Bonds of Series 1985B $ 2,350,000 6.00-9.00% 8-1-1985 8-1-2000 1,035,000 Improvement Bonds of Series 1986A $ 1,795,000 5.00-7.90% 7-1-1986 8-1-2001 945,000 I Improvement Bonds of Series 1986B $ 2,600,000 4.75-6.30% 10-1-1986 10-1-1996 680,000 Refunding Bonds of Series 1986C $ 2,485,000 6.00-7.40% 8-1-1986 8-1-2002 1,645,000 Improvement Bonds of Series 1989A $ 3,200,000 6.10-6.80% 7-1-1989 8-1-2001 2,100,000 Temporary Improvement I Bonds of Series 1992A $ 4,800,000 3.80% 8-1-1992 8-1-1995 4,800,000 Improvement Bonds of Series 1993A $ 3,650,000 4.55% 8-1-1993 8-1-2003 3,285,000 Improvement Bonds of Series 1994C $ 1,140,000 5.05-5.75% 10-1-1994 2-1-2006 1,140,000 Temporary Improvement I Bonds of Series 1994D $ 3,705,000 4.60% 10-1-1994 10-1-1997 3,705,000 Tax Increment Bonds G.O. Tax Increment Bonds of Series 1993B $ 520,000 4.65% 8-1-1993 8-1-2003 470,000 I G. O. Tax Increment Refunding Bonds of Series 1994B $ 885,000 9.15-9.90% 5-1-1994 5-1-2004 885,000 G.O. State-Aid Street Bonds 1988 $ 500,000 5.60-6.80% 8-1-1988 8-1-1998 200,000 I G.O. Fire Station Bonds of Series 1991A $ 2,500,000 5.00-6.50% 7-1-1991 7-1-2001 1,750,000 Total General Obligation Bonds 23,590,000 I Certificates of Indebtedness 1990A Certificates of Indebtedness $ 252,000 6.30-6.70% 12-31-1990 1-1-1996 52,000 1992 Certificates of Indebtedness $ 180,000 4.25-5.75% 8-1-1992 8-1-1997 108,000 1994A Certificates oflndebtedness $ 150,000 3.55-4.25% 3-1-1994 3-1-1999 150.000 I Total Certificates of Indebtedness 310,000 Assessments on City property $ 338,174 6.25-10.70% N/A 2001 147,080 I Contracts for deed payable Park property $ 47,430 9.00% 8-5-1991 8-1-1996 18,972 Street right of ways $ 13,000 8.50% 6-1-1993 6-1-1996 6,551 Total contracts for deed payable' 25,523 I Compensated absences payable N/A N/A N/A N/A 102,142 Total general long-term debt $ 24.174.745 I I -24- I CITY OF ANDOVER ~ Notes to Financial Statements (continued) December 31, 1994 ~ U.J 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 1995 $ 8,145,594 $ 129,134 $ 15,907 $ 8,290,635 1996 3,001,085 74,201 12,181 3,087,467 1997 6,382,094 71,077 6,453,171 1998 2,380,225 31,853 2,412,078 1999 2,206,883 30,637 2,237,520 Thereafter 6,164,121 6,164,121 28,280,002 336,902 28,088 28,644,992 Less amount representing interest 4,690,002 26,902 2,565 4,719,469 $ 23,590,000 $ 310,000 $ 25,523 $ 23,925,523 D. Descriptions and Restrictions of Long-Term Debt c c ~ c ~ ",. }, ' .. 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. c c o c ~ .. General Obligation Bonds classified by major source of repayment are as follows: 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. D 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. ~ '-' C [ r ., -25- ~ n=---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, 1994 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 June 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, 1994 is $10,038,090. 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 $7,769,746 at December 31, 1994. -26- CITY OF ANDOVER ~ Notes to Financial Statements (continued) December 31, 1994 m ~ NOTE 7 - PROPRIETARY FUNDS' CONTRIBUTED CAPITAL ... This balance represents the cost of property contributed to the Proprietary Funds by the City and capital ~ contributed by utility customers, less depreciation thereon charged to the respective funds' operations. ~ Changes occurring in the account during 1994 were as follows: m Internal Service EnteIprise Funds Fund Water Sewer Central Equipment Fund Fund Total Maintenance Fund Total Balance, beginning of year $ 7,629,246 $ 9,010,559 $ 16,639,805 $ 50,000 $ 16,689,805 Capital contributed From utility customers 44,638 44,638 44,638 Less current year's depreciation on contributed assets (191,478) (220,373) (411,851) (411,851) Balance, end of year $ 7 ,482.406 $ 8,790,186 $ 16,272,592 $ 50.000 $ 16.322,592 ~ ~ 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, 1994 is as follows: Water Fund Sewer Fund Total Operating revenue $ 485,107 $ 566,149 $ 1,051,256 Operating expenses $ 233,862 $ 466,265 $ 700,127 Depreciation expense $ 209,328 $ 231,704 $ 441,032 Operating income (loss) $ 41,917 $ (131,820) $ (89,903) Net income (loss) $ 38,691 $ (162,667) $ (123,976) Operating transfers (out) $ (20,000) $ (37,630) $ (57,630) Current capital contributed $ 44,638 $ $ 44,638 Property and equipment additions $ 76,905 $ 25,585 $ 102,490 Net working capital $ 573,213 $ 391,891 $ 965,104 Total assets $ 8,172,634 $ 9,266,435 $ 17,439,069 Total equity $ 8,158,813 $ 9,246,792 $ 17,405,605 C' , , , , C ~ III C C C t ~ C C c -27- o ----.=.--- I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 9 - INTERFUND RECEIVABLES AND PAY ABLES I Individual fund interfund receivables and payables at year-end were as follows: I Fund Interfund Receivable Interfund Payable I General Fund $ Kelsey Round Lake Park Capital Project Fund 20,000 I NOTE 10 - TRANSFERS I 20,000 $ $ 20,000 $ 20,000 The following transfers were made during the year ended December 31, 1994: I A. Operating Transfers Transferred To I General Fund General Fund I General Fund Drainage and Mapping Special Revenue Fund Drainage and Mapping Special Revenue Fund Drainage and Mapping Special Revenue Fund Certificates of Indebtedness Debt Service Fund I I I Improvement Bonds Series 1985B Account Debt Service Fund Improvement Bonds Series 1986BAccount Debt Service Fund Improvement Bonds Series 1986BAccount Debt Service Fund 1991B G.O. Bonds Account Debt Service Fund I I I I I Transferred From Tax Increment Capital Project $ Fund - TIF Project 1-1 Account Tax Increment Capital Project Fund - TIF Project 1-2 Account Administrative Trust Expendable Trust Fund Improvement Bonds of 1992 Account Debt Service Fund Unfmanced Improvement Account Capital Project Fund Improvement Bonds of 1993A Account Debt Service Fund Sewer Enterprise Fund Water Trunk Account Capital Project Fund Water Trunk Account Capital Project Fund Sewer Trunk Account Capital Project Fund Water Trunk Account Capital Project Fund -28- Amount Description 24,000 To reimburse administrative costs related to tax increments. 6,000 To reimburse administrative costs related to tax increments. 65,000 To fund administrative costs. 17 ,243 To transfer assessments collected. 2,584 To transfer assessments collected. 2,730 To transfer assessments collected. 37,630 To reimburse Certificates of Indebtedness for amounts used to purchase Sewer Fund equipment. 327,282 To reimburse debt service for principal payments made. 202,183 To reimburse debt service for principal payments made. 122,817 To reimburse debt service for principal payments made. 826,295 To transfer funds dedicated to debt service payments and connection charges assessed with various capital improvement projects. (continued) CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 10 - TRANSFERS (CONTINUED) Transferred To Transferred From Amount Description 1991B G.O. Bonds Account Sewer Trunk Account 485,285 To transfer funds dedicated to Debt Service Fund Capital Project Fund debt service payments and connection charges assessed with various capital improvement projects. Water Trunk Account Improvement Bonds of 1992 108,953 To transfer assessments collected. Capital Project Fund Account Debt Service Fund Sewer Trunk Account Improvement Bonds of 1992 193,847 To transfer assessments collected. Capital Project Fund Account Debt Service Fund Sewer Trunk Account Improvement Bonds of 31,813 To transfer funds dedicated to Capital Project Fund 1993A Account debt service payments and Debt Service Fund connection charges assessed with various capital improvement projects. Sewer Trunk Account Improvement Bonds of 1993A 440,932 To transfer funds dedicated to Capital Project Fund Account Debt Service Fund debt service payments and connection charges assessed with various capital improvement projects. Administrative Trust Improvement Bonds of 1993A 24,681 To transfer funds dedicated to Expendable Trust Fund Account Debt Service Fund debt service payments and connection charges assessed with various capital improvement projects. Compensated Absences General Fund 3,000 To transfer funds per adopted Expendable Trust Fund budget. Central Equipment Maintenance General Fund 43,200 To transfer funds per adopted Internal Service Fund budget. EDA General Special General Fund 2,000 To transfer funds per adopted Revenue Fund budget. Improvement Bonds Series Improvement Bonds Series 55,295 To provide funding for previously 1993A Construction Account 1994D Construction Account unfrnanced improvement projects. Capital Project Fund Capital Project Fund Unfrnanced Improvement State-Aid Project Account 4,680 To provide funding for previously Account Capital Project Fund Capital Project Fund unfrnanced improvement projects. Unfrnanced Improvement State-Aid Revolving Account 275,906 To provide funding for previously Account Capital Project Fund Capital Project Fund unfrnanced improvement projects. Unfrnanced Improvement Improvement Bonds Series 649,285 To provide funding for previously Account Capital Project Fund 1994D Construction Account unfrnanced improvement projects. Capital Project Fund Unfrnanced Improvement Improvement Bonds Series 255,340 To provide funding for previously Account Capital Project Fund 1994C Construction Account unfrnanced improvement projects. Capital Project Fund Unfrnanced Improvement Improvement Bonds Series 435,259 To provide funding for previously Account Capital Project Fund 1994D Construction Account unfrnanced improvement projects. Capital Project Fund (continued) -29- J.-~I c ~ m m ~ ~ c ~ o ~- .. c c c t ,. ~ L c o o c ~ I - - ~ I ~ ~. . I 1 j ~ ~ I 'I . CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 10 - TRANSFERS (CONTINUED) Description Transferred To Transferred Prom Amount 1 I ] I ! !I i 1 I II ] I ! ] I il II 11 II 1 I ! 11 I II II "., Permanent Improvement Revolving Capital Project Fund Administrative Trust Expendable Trust Fund Administrative Trust Expendable Trust Fund Water Enterprise Fund 20,000 To transfer funds per adopted budget. Improvement Bonds of 1992 Account Debt Service Pund Unfmanced Improvements Account Capital Project Fund 91,840 To transfer assessments collected. 19,947 To transfer assessments collected. $ 4,775,027 B. Residual Equity Transfers Transferred To Transferred Prom Amount Description 1991B G.O. Bonds Account Permanent Improvement $ 228,753 To close 1991B G.O. Bonds Debt Service Pund Revolving Account Account Debt Service Fund Capital Project Fund TIP Project 1 c 1 1987B Account TIP Project 1-1 1993B Account 105,742 To close TIP Project 1-1 1987B Debt Service Fund Debt Service Fund Account Debt Service Fund TIP Project 1-2 1987A Account TIP Project 1-2 1994B Account 939,831 To close TIP Project 1-2 1987A Debt Service Fund Debt Service Fund Account Debt Service Fund $ 1,274,326 NOTE 11 - INDIVIDUAL FUND DISCLOSURES The following funds had a deficit as of December 31, 1994: Fund Deficit Certificates of Indebtedness Debt Service Fund $ Kelsey Round Lake Park Capital Project Fund $ 291 71,818 The deficit in these funds will be financed either through available future tax levies or increments, special assessment revenue, or through transfers from other funds. 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: 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 Reserved for Long-Term Investments - These amounts represent fund balances which are presently reserved for long-term investments. -30- CITY OF ANDOVER c c Notes to Financial Statements (continued) December 31, 1994 c NOTE 11 - INDIVIDUAL FUND DISCLOSURES (CONTINUED) Amount Over Budget c c c c c c C I C! C 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 1994, expenditures at the fund level exceeded appropriations as follows: Debt Service Funds Tax Increment Bonds $ 937,752 Expenditures exceeded appropriations in this Tax Increment Bonds Debt Service Fund due to the issuance of $885,000 ofG.O. Tax Increment Refunding Bonds and the corresponding retirement of the 1987A Tax Increment Bonds. NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE ~ iw A. Plan Description c C I ~..,' ',,' i.J I o All full-time and certain part-time employees of the City of Andover are covered by defined benefit pension plans administered by the Public Employees' Retirement Association of Minnesota (PERA). PERA administers the Public Employees' Retirement Fund (PERF) which is a cost-sharing, multiple- employer retirement plan. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. The payroll for employees covered by PERF for the year ended December 31, 1994 was approximately $958,320; the City's total payroll was $1,153,553. -31- - ~ r .. j.......;l=---4 I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon the death of eligible 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 I, 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 ofthe 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 suftlciency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutory Rates Employees Employer Required Rates PERF (Basic and Coordinated Plans) 4.30% 4.60% 9.58% Total contributions made by the City during fiscal year 1994 were: Amounts Employees Employer Percentage of Covered Payroll Employees Employer PERF $ 40,537 $ 42,933 4.23% 4.48% -32- CITY OF ANDOVER ~ ~ c c Notes to Financial Statements (continued) December 31, 1994 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) The City's contribution for the year ended December 31, 1994 to the PERF represented 0.04 % of total employer contributions required of all participating entities. C. Funding Status and Progress ~ .. 1. Pension Benefit Obligation Net assets available for benefits, at cost (market values for PERF = $4,762,519,000) 4,733,845,000 ~ ~ ~ C C t C The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees' Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1994 are shown below: Total pension benefit obligation $ 5,625,598,000 Unfunded (assets in excess ot) pension benefit obligation $ 891,753,000 ~ ... The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of June 30, 1994. ~ W For the PERF, significant actuarial assumptions used in the calculation of the pension benetit obligation include: (a) a rate of return on the investment of present and future assets of 8.5% per year, compounded annually, prior to retirement, and 5.0% per year, compounded annually, following retirement; (b) projected salary increases taken from a select and ultimate table; (c) payroll growth at 6.0% per year, consisting of 5.0% for inflation and 1.0% due to growth in group size; (d) post-retirement benefit increases that are accounted for by the 5.0% rate of return assumption following retirement; and (e) mortality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five years for each active member. ,. '- -33- c c ~ c c 2. Changes in Plan Provisions The 1994 legislative session did not include any benefit improvements which would impact funding costs for the PERF. -=-------,--:=--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, 1994 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) 3. Changes in Actuarial Assumptions Prior to fiscal year 1994, the salary increase assumption and the mortality tables used in the calculation of the pension benefit obligation for the PERF were the same as those specified for the PEPFF. For the July 1, 1994 actuarial valuation, PERA's Board of Trustees approved new mortality rates updated to the 1983 Group Annuity Mortality Table, salary increases which were changed to a select and ultimate table, and a new payroll growth assumption which was changed from 6.5% to 6.0%. These changes were made to reflect actual experience of the plan. With the adoption of the actuarial assumption changes and the new mortality tables for the PERF, the pension benefit obligation increased by $56,596,000. The actuarial assumption changes also necessitated a $81,201,000 transfer from the PERF Benefit Reserve to the PERF Minnesota Post Retirement Investment Fund (MPRIF) Reserve to finance the increased obligation for future retirement benefits. The change in the mortality rate assumption increased the PERF's costs because pensioners are living longer than assumed previously. The change in the salary increase assumption, however, offset some of the additional costs because lower salary increases generally translate into lower benefit liabilities in the future. D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1994. 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, 1994, 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, 1994 was $120,973. The City's total payroll was $1,153,553. 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. -34- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 13 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION (CONTINUED) 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 tire department to which the Association is associated, and has been a member of the Relief Association for at least 10 years prior to retirement after age 50, is entitled to a service pension upon retirement. The service pension prescribed by the Association's 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. 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. -35- --=---~,- I o ~ m c ~ c ~ c ~ ~ C C C C C C o C C C I I I I I -I I I - I il i I 1 I 1 ! I , I II I I 11 i I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 13 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION (CONTINUED) 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 $750 per member per year. In 1994, the City contributed $60,983 to the Association, consisting of $36,383 state aid and $24,600 fulfilling the City's $750 per member contribution obligation for the year ended December 31, 1994. The City's contribution represents 20.33% of covered payroll. NOTE 14 - TAX INCREMENT FINANCING DISTRICTS The City is the administering authority for the following tax increment financing districts within their respective development districts: 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 $ 56,517 $ 28,525 Current Tax Capacity (For Taxes Collectible in 1994) $ 504,818 $ 222,388 Captured Tax Capacity Retained by Authority $ 448,301 $ 193,863 Total Tax Increment Bonds Issued $ 725,000 $ 1,950,000 Amounts Redeemed 255,000 1,065,000 Bonds Outstanding - End of Year $ 470,000 $ 885,000 -36- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 NOTE 15 - COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31, 1994, 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 $1,539,882. 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. 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. -37- - -:----~~- t : ~ ~ C C o C c C, i ~I a.. o c o o o o c c I I I 1 II I ;1 ~ .; I I 11 ii I 1 i I -I i ~I - I I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1994 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 of the 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 - LONG-TERM INVESTMENTS At December 31, 1994, the City of Andover held 207.226 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 $2,293,305. As of December 31, 1994, the market value per share of the fund has declined to $7.48 per share. Therefore, the current market value of the City's holdings based on the number of shares held at December 31, 1994 is $1,550,054, resulting in an unrecorded market loss to the City of approximately $743,251. The underlying securities in which this fund is invested have fixed maturities. The City does not control whether or not the underlying securities are held to maturity. However, City management believes that by holding onto its shares in the fund and reinvesting monthly dividends received at the lower cost, the City will eventually recover most, if not all, of this unrecorded loss. Because the City intends to hold its investment in this fund, the investment is not considered available to finance current operations. Therefore, the City has recorded a reservation of fund balance equal to the current book value of this investment. Investments are adjusted to market value only when a permanent decline in market value has occurred or when such investments will not be carried to maturity. NOTE 19 - SUBSEQUENT EVENTS In June 1995, the City sold three bond issues. The first issue is $2,605,000 of General Obligation Improvement Bonds, Series 1995A. The proceeds ofthese bonds are to be used for capital improvement projects. The issue bears an interest rate of 4.8 to 5.3% and has a final maturity of February 1,2004. -38- CITY OF ANDOVER c c c o c c C c: C C C Notes to Financial Statements (continued) December 31, 1994 NOTE 19 - SUBSEQUENT EVENTS (CONTINUED) The second issue is $825,000 of General Obligation Improvement Refunding Bonds, Series 1995B. The proceeds of this issue will be used to refund the General Obligation Improvement Bonds, Series 1985B. The refunding issue bears an overall interest rate of 4.4 to 4.85 % and has a final maturity of August 1, 2000. The third issue is $515,000 of General Obligation Equipment Certificates of Indebtedness, Series 1995C. The proceeds of this issue will be used to make various Public Safety and Public Works equipment purchases. The issue bears an interest rate of 4.40 to 4.85% and has a final maturity of February 1, 2000. ~ o ~.i, ~ C c ~ ~ \.. -39- c ~;i'- I ~I I I I I I I I I I I I I I I I I I I COMBINING AND INDIVIDUAL FUND STATEMENTS m c ~ m o ~ ~ c c C t t t C C o o o c - - ~--.=r- I cl "I ~I I ; I 1 I II f I 1 I I :; I . 'i I J - ~ I .. i I J ~ '" i I ! i I :i II 11 t >1 CITY OF ANDOVER General Fund Comparative Balance Sheet As of December 31,1994 and 1993 Assets Cash and temporary investments 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 items Due to other governmental units Deferred revenue T otalliabili ties Fund balance Reserved for long-term investments Umeserved Designated for working capital Total fund balance Total liabilities and fund balance -40- 1994 1993 $ 684,510 $ 812,937 225,432 38,620 31,463 11,844 16,723 47,382 41,422 1,265 16 46 836 94,228 83,333 20,000 20,000 65,115 56,131 1,377 1,621 $ 1,189,819 $ 1,064,482 $ 103,138 $ 116,809 1,966 22,417 17,306 29,696 30,674 48,692 42,274 203,943 209,029 225,432 760,444 855,453 985,876 855,453 $ 1,189,819 $ 1,064,482 I'l CITY OF ANDOVER ~j General Fund M Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual lIIi Year Ended December 31, 1994 C (with Comparative Actual Amounts for Year Ended December 31, 1993) 1994 1993 C Over (Under) Budget Actual Budget Actual ~ Revenue . Taxes ad valorem $ 1,491,885 $ 1,472,108 $ (19,777) $ 1,241,114 Licenses and permits 352,740 410,733 57,993 470,371 C Intergovernmental revenue C Federal CDBG 56,276 50,422 (5,854) 29,135 State Local government aid 87,390 87,388 (2) 40,007 C HACA and other tax credits 352,173 352,226 53 393,239 Street maintenance 140,000 140,000 140,000 Fire department aid 34,100 36,383 2,283 32,938 C Other 73,558 78,737 5,179 75,591 Total intergovern- mental revenue 743,497 745,156 1,659 710,910 0 Charges for services General government 86,573 119,232 32,659 53,206 ~ Street lights 95,400 102,648 7,248 93,122 Utility Funds 4,500 6,080 1,580 6,540 .. Total charges for services 186,473 227,960 41,487 152,868 C Fines and forfeits 40,000 40,496 496 38,178 Other revenue C Interest earned on investments 33,000 43,043 10,043 36,938 Refunds and reimbursements 31,844 43,104 11,260 33,645 Miscellaneous 4,600 5,176 576 4,929 . Total other revenue 69,444 91,323 21,879 75,512 l.I ! Total revenue 2,884,039 2,987,776 103,737 2,688,953 .. Expenditures '- General government ~ Council ~ Personal services 20,080 20,023 (57) 19,912 Supplies 200 337 137 309 Other services and charges 28,490 28,543 53 25,376 ~ Total council 48,770 48,903 133 45,597 ... (continued) 0 -41- 0 - ----- -~ - - - ~=--T 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 31,1994 (with Comparative Actual Amounts for Year Ended December 31, 1993) 1994 1993 Over (Under) Budget Actual Budget Actual Expenditures (continued) General government (continued) Elections Personal services 13,684 14,685 1,001 1,669 Supplies 600 1,005 405 38 Other services and charges 1,890 1,193 (697) 152 Total elections 16,174 16,883 789 1,859 Newsletter Personal services 1,455 843 (612) 658 Supplies 50 30 (20) 53 Other services and charges 4,050 3,757 (293) 2,065 Total newsletter 5,555 4,630 (925) 2,776 Administration Personal services 114,225 115,173 948 109,816 Supplies 1,700 2,020 320 2,208 Other services and charges 30,887 29,713 (1,174) 26,088 Capital outlay 310 309 (1) 523 Total administration 147,122 147,215 93 138,635 Financial administration Personal services 116,440 114,675 (1,765) 107,476 Supplies 2,700 2,652 (48) 2,689 Other services and charges 6,585 8,233 1,648 4,842 Total financial administration 125,725 125,560 (165) 115,007 Assessing Other services and charges 53,860 53,853 (7) 47,190 Consulting staff Auditing 11,000 11,000 10,750 Legal 81,160 82,249 1,089 78,317 Total consulting staff 92,160 93,249 1,089 89,067 ( continued) -42- CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31,1993) Budget Expenditures (continued) General government (continued) Planning and zoning Personal services Supplies Other services and charges Capital outlay Total planning and zoning 77,570 2,420 8,308 310 88,608 Data processing Supplies 24,400 Buildings Administration building Personal services Supplies Other services and charges Capital outlay Total administra- tion building 4,450 32,050 13,265 49,765 Fire department building Personal services Supplies Other services and charges Total fire depart- ment building 2,600 29,920 32,520 Public works building Personal services Supplies Other services and charges Capital outlay Total public works building 4,700 20,035 4,000 28,735 -43- 1994 Actual 73,213 2,360 8,061 1,007 84,641 24,181 612 4,505 25,889 12,158 43,164 2,727 31,002 33,729 1,028 3,584 19,107 4,000 27,719 Over (Under) Budget (4,357) (60) (247) 697 (3,967) (219) 612 55 (6,161) (1,107) (6,601) 127 1,082 1,209 1,028 (1,116) (928) (1,016) I- ~ I 1993 ~ ~ C ~ Actual ~ -. 41,698 1,551 6,061 c ~ ~ ~ ~ 49,310 19,538 1,285 4,237 23,646 26,179 ~I .. 55,347 44 5,117 33,394 ~ ~ ~. 38,555 4,991 4,840 17,444 m o 27,275 ~ ~ ~ (continued) ~ ~ ~ - I CITY OF ANDOVER - I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance I Budget and Actual (continued) Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31, 1993) I 1994 1993 Over I (Under) Budget Actual Budget Actual Expenditures (continued) -I General government (continued) Buildings (continued) Senior citizen center - Personal services 82 - I Supplies 400 128 (272) 314 Other services and charges 8,870 7,048 (1,822) 7,849 Total senior citizen center 9,270 7,176 (2,094) 8,245 -I Storage building Supplies 210 109 (101) 85 I Other services and charges 3,590 2,293 (1,297) 3,292 Total storage building 3,800 2,402 (1,398) 3,377 -I Total buildings 124,090 114,190 (9,900) 132,799 Engineering - I Personal services 81,670 82,275 605 70,088 - Supplies 1,900 1,625 (275) 4,610 - - Other services and charges 7,430 7,521 91 3,702 Total engineering 91,000 91,421 421 78,400 - I - Total general government 817,464 804,726 (12,738) 720,178 -I Public safety Police protection Supplies 75 15 (60) 75 I Other services and charges 433,859 430,759 (3,100) 424,836 Total police protection 433,934 430,774 (3,160) 424,911 I Fire protection - Personal services 134,090 146,747 12,657 126,926 Supplies 10,000 10,087 87 11,419 I Other services and charges 84,938 85,187 249 68,994 Relief Association 62,900 60,983 (1,917) 46,238 Capital outlay 17,260 21,565 4,305 18,384 Total fire protection 309,188 324,569 15,381 271,961 - I I (continued) I -44- - - CITY OF ANDOVER ~ General Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) C Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31,1993) 1994 1993 C Over (Under) C Budget Actual Budget Actual Expenditures (continued) Public safety (continued) C Rescue service Personal services 13,900 Supplies 1,352 C Other services and charges 11,234 Total rescue service 26,486 Protective inspection C Personal services 182,550 181,867 (683) 164,813 Supplies 7,100 7,174 74 7,897 Other services and charges 8,707 7,904 (803) 6,982 C Capital outlay 560 851 291 21,670 Total protective inspection 198,917 197,796 (1,121) 201,362 Civil defense C Supplies 1,125 155 (970) 966 Other services and charges 3,545 7,335 3,790 2,170 C Total civil defense 4,670 7,490 2,820 3,136 Animal control Personal services 313 P'l Supplies 175 245 70 ... Other services and charges 9,775 9,300 ( 475) 9,202 Total animal control 9,950 9,545 (405) 9,515 ~ I.W " Total public safety 956,659 970,174 13,515 937,371 Public works m Streets and highways Personal services 121,890 110,801 (11,089) 107,986 Supplies 17,200 19,671 2,471 17,554 ~ ' , Other services and charges 74,180 69,692 (4,488) 60,806 lIII Capital outlay 110,000 109,926 (74) 60,200 W Total streets and highways 323,270 310,090 (13,180) 246,546 C (continued) C -45- ~ --~ ----- ------ ~~l I CITY OF ANDOVER I General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) I Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31, 1993) I 1994 1993 Over I (Under) Budget Actual Budget Actual Expenditures (continued) I Public works (continued) Snow and ice removal Personal services 74,335 57,899 (16,436) 43,290 Supplies 46,750 60,186 13,436 63,749 I Other services and charges 39,530 38,885 (645) 34,255 Total snow and ice removal 160,615 156,970 (3,645) 141,294 I Street lighting Supplies I Billable 150 59 (91) Other services and charges City 18,150 16,801 (1,349) 16,446 I Billable 59,425 64,875 5,450 58,357 Capital outlay City 1,500 1,380 (120) 640 I Billable 15,200 11,500 (3,700) 15,042 Total street lighting 94,425 94,615 190 90,485 Street signs/signals I Personal services 26,995 26,829 (166) 17,301 Supplies 15,900 16,509 609 14,923 Other services and charges 17,310 20,792 3,482 9,678 I Capital outlay 575 Total street signs/signals 60,205 64,130 3,925 42,477 I Total public works 638,515 625,805 (12,710) 520,802 Sanitation I Storm sewers Personal services 19,245 23,886 4,641 9,230 Supplies 2,200 1,995 (205) 1,929 I Other services and charges 4,225 3,231 (994) 14,769 Total storm sewers 25,670 29,112 3,442 25,928 I I (continued) I -46- CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31, 1993) 1994 1993 Over (Under) Budget Actual Budget Actual Expenditures (continued) Sanitation (continued) Trees and weed control Personal services 14,570 16,834 2,264 4,672 Supplies 700 470 (230) 361 Other services and charges 19,810 5,106 (14,704) 5,943 Total trees and weed control 35,080 22,410 (12,670) 10,976 Total sanitation 60,750 51,522 (9,228) 36,904 Parks and recreation Personal services 123,750 123,323 (427) 104,414 Supplies 23,700 23,129 (571) 12,388 Other services and charges 47,210 44,149 (3,061) 36,885 Community education programs 53,182 53,182 47,825 Assessments 20,450 20,450 20,642 Capital outlay 30,000 29,925 (75) 10,655 Total parks and recreation 298,292 294,158 (4,134) 232,809 Recycling Personal services 15,315 15,300 (15) 14,935 Supplies 3,900 2,077 (1,823) 1,683 Other services and charges 19,200 23,195 3,995 20,184 Capital outlay 6,100 9,002 2,902 13,659 Total recycling 44,515 49,574 5,059 50,461 Economic development Personal services 21,410 21,004 (406) 22,203 Supplies 300 194 (106) 276 Other services and charges 608 718 110 357 Total economic development 22,318 21,916 (402) 22,836 (continued) -47- -----,;:::3 c c ~,' ~ ~", ~ ~ ~ ~ ~ ~ II L C t L C I: C C C ~ II I I I I I )1 II I I II I )1 j I .lI !II i I i J I ~ II e! 11 ~ ~ II 00; ! II I !I -., , CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31,1993) 1994 1993 Over (Under) Budget Actual Budget Actual Expenditures (continued) Unallocated CDBG 56,276 50,584 (5,692) 31,991 Insurance 34,650 34,633 (17) 20,469 Waste disp. engineer site 111 111 381 Miscellaneous 1,400 950 (450) 850 Total unallocated 92,326 86,278 (6,048) 53,691 Total expenditures 2,930,839 2,904,153 (26,686) 2,575,052 Excess (deficiency) of revenue over expenditures (46,800) 83,623 130,423 113,901 Other financing sources (uses) Operating transfers in Capital Project Funds 30,000 30,000 30,000 Expendable Trust Funds 65,000 65,000 67,498 Operating transfers (out) Capital Project Funds (20,000) Internal Service Funds (3,000) Expendable Trust Funds (48,200) (48,200) Total other financing sources (uses) 46,800 46,800 74,498 Excess of revenue and other financing sources over expenditures and other financing uses $ 130,423 $ 130,423 188,399 Fund balance Beginning of year 855,453 731,760 Residual equity transfers (out) (64,706) End of year $ 985,876 $ 855,453 -48- CITY OF ANDOVER Special Revenue Funds P Combining Balance Sheet As of December 31, 1994 (with Comparative Totals as of December 31, 1993) { i Drainage and IDA Totals Forestry LRRWMO Mapping General 1994 1993 Assets ' i Cash and temporary investments $ 32,990 $ 5,947 $ 41,700 $ 38,408 $ 119,045 $ 55,389 Receivables Accounts - 650 - - 650 - Accrued interest 660 35 741 569 2,005 1,125 Delinquent taxes - 340 - - 340 267 Due from other governmental units - 115 - - 115 170 i Total assets $ 33,650 $ 7,087 $ 42,441 $ 38,977 $ 122,155 $ 56,951 Liabilities and Fund Balance Liabilities Accounts payable $ 270 $ - $ 6 $ 410 $ 686 $ 7,928 Accrued items - 189 - - 189 - E� Deferred revenue 23,300 341 23,641 8,117 Total liabilities 23,570 530 6 410 24,516 16,045 Fund balance Unreserved Undesignated 10,080 6,557 42,435 38,567 97,639 40,906 Total liabilities and fund balance $ 33,650 $ 7,087 $ 42,441 $ 38,977 $ 122,155 $ 56,951 MCI A E, N OR �W -49- L I CITY OF ANDOVER I Special Revenue Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1994 I (with Comparative Totals for Year Ended December 31, 1993) I Drainage and EDA Totals Forestry LRRWMO Mapping General 1994 1993 I Revenue Taxes ad valorem $ $ 12,123 $ $ $ 12,123 $ 11,647 I Special assessments 3 3 3 Intergovernmental revenue Federal Cooperative forestry I assistance 8,550 8,550 12,150 State HACA and other tax credits 3,475 3,475 3,862 I Other revenue Interest eamed on investments 1,676 35 1,213 938 3,862 1,579 Miscellaneous 2,360 649 3,009 1,119 Total revenue 12,586 16,282 1,216 938 31,022 30,360 I Expenditures Public works I Other services and charges 8,550 15,139 10,786 17,412 51,887 40,348 Excess (deficiency) of I revenue over expenditures 4,036 1,143 (9,570) (16,474) (20,865) (9,988) Other financing sources Sale of property 53,041 53,041 I Operating transfers in General Fund 2,000 2,000 Debt Service Funds 2,584 2,584 3,375 I Capital Project Funds 19,973 19,973 304 Total other financing sources 22,557 55,041 77,598 3,679 I Excess (deficiency) of revenue and other financing sources over expenditures 4,036 1,143 12,987 38,567 56,733 (6,309) I Fund balance Beginning of year 6,044 5,414 29,448 40,906 42,509 Residual equity transfers in 4,706 I End of year $ 10,080 $ 6,557 $ 42,435 $ 38,5 67 $ 97,639 $ 40,906 I I I -50- CITY OF ANDOVER ~ Debt Service Funds C Combining Balance Sheet As of December 31, 1994 (with Comparative Totals as of December 31, 1993) C i: 1991A Certificates State- C G.O. of Aid Bonds Indebtedness Bonds C Assets Cash and temporary investments (deficit) $ 19,959 $ (1,287) $ 6,675 C Investments Receivables C Accounts 19 Accrued interest 150 20 Delinquent taxes 8,865 3,258 C Delinquent special assessments Deferred special assessments Due from other governmental units 3,378 827 Total assets $ 32,202 $ 2,967 $ 6,695 C Liabilities and Fund Balance t Liabili ti es Accrued items $ $ $ C Deferred revenue 8,865 3,258 Arbitrage rebate Total liabilities 8,865 3,258 C Fund balance (deficit) Reserved for debt service 23,337 6,695 C Reserved for long-term investment Umeserved Undesignated (291 ) C Total fund balance (deficit) 23,337 (291 ) 6,695 Total liabilities and fund balance $ 32,202 $ 2,967 $ 6,695 C C C C -51- C "~~- ' Tax Special Increment Assessment Totals Bonds Bonds 1994 1993 $ 19,147 $ 8,269,922 $ 8,314,416 $ 10,574,423 — 1,552,797 1,552,797 — — — 19 — 161,110 161,280 205,781 — 12,123 11,434 41,619 41,619 34,120 2,223,450 2,223,450 2,661,099 — 5,927 10,132 11,152 $ 19,147 $ 12 $ 12,315,836 $ 13,498,009 ' $ — $ — $ — $ 14,906 — 2,265,070 2,277,193 2,706,655 — 553 553 553 -' — 2,265,623 2,277,746 2,722,114 ' 69,398 8,436,405 8,535,835 10,793,939 1,552,797 1,552,797 (50,251 ) — (50,542) (18,044) 19,147 9,989,202 10,038,090 10,775,895 ' $ 19,147 $ 12,254,825 $ 12,315,836 $ 13,498,009 ' -52- CITY OF ANDOVER ~ Debt Service Funds ~ Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1994 (with Comparative Totals for Year Ended December 31,1993) ~ 1991A Certifi cates State- ~ G.O. of Aid Bonds fudebtedness Bonds Revenue ~ Taxes ad valorem $ 272,596 $ 66,292 $ Special assessments futergovemmental revenue C State aids 131,071 HACA and other tax credits 107,275 25,936 Other revenue futerest earned on investments 192 200 302 C Miscellaneous 23 Total revenue 380,063 92,451 131,373 Expenditures C Debt service Principal retirement 250,000 108,000 110,000 C futerest 113,375 18,689 22,025 Other 509 1,293 Total expenditures 363,884 126,689 133,318 ~ Excess (deficiency) of revenue over expenditures 16,179 (34,238) (1,945) Other financing sources (uses) ~ Bonds proceeds Operating transfers in ~ Debt Service Funds Capital Project Funds Enterprise Funds 37,630 ~ Operating transfers (out) Special Revenue Funds Capital Project Funds ~ Expendable Trust Funds Total other financing sources (uses) 37,630 Excess (deficiency) of revenue and other financing ~ sources over expenditures and other financing uses 16,179 3,392 (1,945) Fund balance (deficit) ~ Beginning of year 7,158 (3,683) 8,640 Residual equity transfers in Residual equity transfers (out) C End of year $ 23,337 $ (291) $ 6,695 ~ -53- ~ ~-- - - ~-=-l ---- ' Tax Special Increment Assessment Totals Bonds Bonds 1994 1993 t $ - $ — $ 338,888 $ 369,695 — 3,682,954 3,682,954 4,609,828 1 — — 131,071 128,605 — 133,211 120,534 8,558 555,397 564,649 453,645 23 8,558 4,238,351 4,850,796 5,682,307 980,000 5,020,000 6,468,000 5,748,000 157,617 1,015,465 1,327,171 1,548,391 4,455 57,752 64,009 50,016 1,142,072 6,093,217 7,859,180 7,346,407 (1,133,514) (1,854,866) (3,008,384) (1,664,100) 885,000 67,373 952,373 548,000 ' — — — 981,920 — 1,963,862 1,963,862 1,574,357 ' — — 37,630 37,630 (19,973) (19,973) (3,375) (775,545) (775,545) (256,738) (116,521) (116,521) (36,673) 885,000 1,119,196 2,041,826 2,845,121 ' (248,514) (735,670) (966,558) 1,181,021 ' 267,661 10,496,119 10,775,895 7,986,525 1,045,573 228,753 1,274,326 2,225,347 -' (1,045,573) — (1,045,573) (616,998) $ 19,147 $ 9,989,202 $ 10,038,090 $ 10,775,895 - 1 -54- -55- to m m c c c U I m m c c c c c c c c c c 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, 1994 (with Comparative Actual Amounts for Year Ended December 31,1993) 1994 1993 Over (Under) Budget Actual Budget Actual Revenue Taxes ad valorem $ 274,301 $ 272,596 $ (1,705) $ 303,162 futergovemmental revenue HACA and other tax credits 107,243 107,275 32 98,961 Other revenue futerest earned on investments 192 192 Total revenue 381,544 380,063 (1,481) 402,123 Expenditures Debt service Principal retirement 250,000 250,000 250,000 futerest 130,544 113,375 (17,169) 132,932 Other 1,000 509 (491 ) 497 Total expenditures 381,544 363,884 (17,660) 383,429 Excess of revenue over expenditures $ 16,179 $ 16,179 18,694 Fund balance (deficit) Beginning of year 7,158 (11,675) Residual equity transfers in 139 End of year $ 23,337 $ 7,158 :- -1:0-.....--1 I CITY OF ANDOVER I Certificates of Indebtedness Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance I Budget and Actual Year Ended December 31,1994 (with Comparative Actual Amounts for Year Ended December 31, 1993) I 1994 1993 I Over (Under) Budget Actual Budget Actual I Revenue Taxes ad valorem $ 66,382 $ 66,292 $ (90) $ 66,533 I Intergovernmental revenue HACA and other tax credits 25,953 25,936 (17) 21,573 Other revenue I Interest earned on investments 200 200 Miscellaneous 23 23 Total revenue 92,335 92,451 116 88,106 I Expenditures Debt service - I Principal retirement 108,000 108,000 108,000 - Interest 21,965 18,689 (3,276) 22,029 Total expenditures 129,965 126,689 (3,276) 130,029 - I ~ Excess (deficiency) of - revenue over expenditures (37,630) (34,238) 3,392 (41,923) - I Other financing sources - Operating transfers in I Enterprise Funds 37,630 37,630 37,630 - Excess (deficiency) of I revenue and other financing sources over expenditures $ 3,392 $ 3,392 (4,293) - - - Fund balance (deficit) - = I Beginning of year (3,683) 610 - End of year $ (291 ) $ (3,683) - I - - - I ~ I - I -56- i ~ ~ ~ / CITY OF ANDOVER State-Aid Bonds Debt Service Fund Balance Sheet As of December 31,1994 (with Comparative Totals as of December 31,1993) State-Aid Bonds of 1984 Account Assets Cash and temporary investments Receivables Accrued interest $ 488 Total assets $ 488 Fund Balance Fund balance Reserved for debt service $ 488 -57- "~, State-Aid Bonds of 1988 Account $ 6,187 20 $ 6,207 $ 6,207 ~ ~ c m Totals 1994 1993 ~ W $ 6,675 $ 8,330 m m m m c c c c c c c c c c 20 310 $ 6,695 $ 8,640 $ 6,695 $ 8,640 ~ ~;..--l 1 1 I I I I I I -I I -I -I -I I -I I 1 = I -I " 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, 1994 (with Comparative Actual Amounts for Year Ended December 31, 1993) 1994 1993 Actual State-Aid State-Aid Bonds Bonds Over of 1984 of 1988 (Under) Budget Account Account Total Budget Actual Revenue Intergovernmental revenue State aids $ 132,025 $ 66,046 $ 65,025 $ 131,071 $ (954) $ 128,605 Other revenue Interest earned on investments 121 181 302 302 718 Total revenue 132,025 66,167 65,206 131,373 (652) 129,323 Expenditures Debt service Principal retirement 11 0,000 60,000 50,000 110,000 100,000 Interest 22,025 5,400 16,625 22,025 29,500 Other 1,300 647 646 1,293 (7) 1,316 Total expenditures 133,325 66,047 67,271 133,318 (7) 130,816 Excess (deficiency) of revenue over expenditures $ 0,300) 120 (2,065) (1,945) $ (645) (1.493) Fund balance Beginning of year 368 8,272 8,640 10.133 End of year $ 488 $ 6.207 $ 6,695 $ 8,640 -58- ~ m m m c m ~ m , c, I m c. c c c c c C i C , ! C, ! -- t==<i-I- - I I 1 I -I -I -I -I - I -I - I - - I - - - I - - - I ! = - I J - I ~ - - I j - I - '" ~ ~ .. I 1 I '!!! ~ Assets Cash and temporary investments (deficit) Fund Balance (Deficit) Fund balance (deficit) Reserved for debt service Unreserved Undesignated Total fund balance (deficit) CITY OF ANDOVER Tax Increment Bonds Debt Service Fund Balance Sheet As of December 31,1994 (with Comparative Totals as of December 31,1993) TIP TIP TIP TIP Project Project Project Project 1-1 1-1 1-2 1-2 1987B 1993B 1987A 1994B Totals Account Account Account Account 1994 1993 $ $ 69,398 $ $ (50,251) $ 19,147 $ 267,661 $ $ 69,398 $ $ $ 69,398 $ 267,661 (50,251) (50,251) $ $ 69,398 $ $ (50,251) $ 19,147 $ 267,661 -59- CITY OF ANDOVER Tax mcrement Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1994 (with Comparative Actual Amounts for Year Ended December 31,1993) Budget TIF Project 1-1 1987B Account TIF Project 1-1 1993B Account Revenue Other revenue mterest earned on investments $ $ $ Expenditures Debt service Principal retirement mterest Other Total expenditures 95,000 50,000 108,570 21,115 750 477 204,320 71,592 (204,320) (71,592) Excess (deficiency) of revenue over expenditures Other financing sources Bond proceeds Excess (deficiency) of revenue and other financing sources over expenditures $ (204,320) (71,592) Fund balance (deficit) Beginning of year Residual equity transfer in Residual equity transfer (out) 105,742 (105,742) 35,248 105,742 End of year $ $ 69,398 -60- ----,:::;0 ~ ~ ~ m m ~ 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 il J I 'I 1994 Actual TIF Project 1-2 1987A Account $ 930,000 136,502 1,066,502 (1,066,502) (1,066,502) 126,671 939,831 $ TIF Project 1-2 1994B Account $ 8,558 $ 3,978 3,978 4,580 885,000 889,580 (939,831) $ (50,251) $ Over (Under) Total Budget 8,558 $ 8,558 980,000 157,617 4,455 1,142,072 (1,133,514) 885,000 885,000 49,047 3,705 937,752 (929,194) 885,000 (248,514) $ (44,194) 267,661 1,045,573 (1,045,573) 19,147 -61- 1993 Actual $ 695,000 129,825 15,522 840,347 (840,347) 50,000 (790,347) 1,058,008 $ 267,661 CITY OF ANOOVER Special Assessment Bonds Debt Service Fund Balance Sheet As of December 31, 1994 (with Comparative Totals as of December 31, 1993) Improvement Bonds Series 1977A Account Improvement Bonds of 1978 Account Improvement Bonds of 1979 Account Assets Cash and temporary investments Investments Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units $ 672.582 $ 130,001 $ 59,653 12,811 2,223 980 1,396 187,166 26,902 336 198 $ 874,291 $ 159,126 $ 60,831 Total assets Liabilities and Fund Balance liabilities Accrued items Deferred revenue Arbitrage rebate Total liabilities $ $ 188,563 26,902 188,563 26,902 685,728 132,224 685,728 132,224 $ 874,291 $ 159,126 $ Fund balance (deficit) Reserved for debt service Reserved for long-term investment Undesignated Total fund balance 60,831 60,831 $ 60,831 Total liabilities and fund balance -62- -- -=--------p:::=J=""--- c m c m c c c c c c c c c o c c C 01 C I I I I Improvement Improvement Improvement Improvement Refunding Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series I 1985A 1985B 1986A 1986B 1986C ~ Account Account Account Account Account - I $ 160,452 $ 8,139 $ 702,601 $ 2,586 $ 1,294,102 I 212,819 390,779 2,791 133 15,728 28,114 I 1,229 1,686 16,916 - 28,766 2,289 10,859 43,964 536,239 = - 413 595 803 I $ 192,009 $ 12,203 $ 943,693 $ 47,145 $ 2,266,953 - - ~ I - $ $ $ $ $ I 28,767 3,518 12,545 43,964 553,155 - ~ 28,767 3,518 12,545 43,964 553,155 ~ I 163,242 8,685 718,329 3,181 1,323,019 I 212,819 390,779 - 8,685 3,181 1,713,798 163,242 931,148 I $ 192,009 $ 12,203 $ 943,693 $ 47,145 $ 2,266,953 - - - I ~ - - I - (continued) - I - - - - I - - -63- ji I . '" ~ l CITY OF ANOOVER Special Assessment Bonds Debt Service Fund Balance Sheet (continued) As of December 31, 1994 (with Comparative Totals as of December 31, 1993) hnprovement Bonds of 1989 Account 1991B G.O. Bonds Account hnprovement Bonds of 1992 Account Assets Cash and temporary investments Investments Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units $ 684,036 $ $ 3,131,730 949,199 11,679 62,361 1,015 17,216 80,876 685,322 1,139 1,398 $ 778,745 $ $ 4,847,226 Total assets Liabilities and Fund Balance Liabilities Accrued items Deferred revenue Arbitrage rebate T otalliabili ti es $ $ $ 81,891 702,538 81,891 702,538 696,854 3,195,489 949,199 696,854 4,144,688 $ 778,745 $ $ 4,847,226 Fund balance (deficit) Reserved for debt service Reserved for long-term investment Undesignated Total fund balance Total liabilities and fund balance -64- - ----~;-r- ~ ~ ~ C ~ ~ ... m m c c c c c c c c c c c I I I I Temporary Improvement Improvement Improvement Bonds of Bonds Series Bonds Series I 1993A 1994C 1994D Totals Account Account Account 1994 1993 I $ 550,297 $ 86,599 $ 787,144 $ 8,269,922 $ 10,298,385 I 1,552,797 13,049 678 10,563 161,110 205,471 I 2,161 41,619 34,120 249,022 269,236 102,809 2,223,450 2,661,099 599 446 5,927 5,128 -I $ 815,128 $ 356,959 $ 900,516 $ 12,254,825 $ 13,204,203 - I - $ $ $ $ $ 12,310 - I 251,182 269,236 102,809 2,265,070 2,695,221 553 553 553 251,735 269,236 102,809 2,265,623 2,708,084 - I - 563,393 87,723 797,707 8,436,405 10,510,480 - I 1,552,797 - (14,361) - 563,393 87,723 797,707 9,989,202 10,496,119 . I $ 815,128 $ 356,959 $ 900,516 $ 12,254,825 $ 13,204,203 ~ - I I - I ~ - - - I - - - - -65- - I ~ l CITY OF ANDOVER C Special Assessment Bonds Debt Service Fund m Statement of Revenue, Expenditures, and Cllanges in Fund Balance Budget and Actual Year Ended December 31, 1994 m (with Comparative Totals for Year Ended December 31, 1993) m Improvement Improvement Improvement Bonds Series Bonds of Bonds of m 1977A 1978 1979 Budget Account Account Account Revenue m SpecialassesSDlents $ 1,406,500 $ 33,860 $ 10,790 $ 11,092 Other revenue Interest earned on investments 295,270 26,567 4,485 1,646 Total revenue 1,701,770 60,427 15,275 12,738 m Expenditures Debt service C Principal retirement 5,020,000 50,000 15,000 25,000 Interest 1,107,266 36,750 6,143 2,437 Other 6,250 225 400 957 Total expenditures 6,133,516 86,975 21,543 28,394 m Excess (deficiency) of revenue over expenditures (4,431,746) (26,548) (6,268) (15,656) C , Other financing sources (uses) Bond proceeds C Operating transfers in Debt Service Funds Capital Project Funds 1,638,862 Operating transfers (out) C Special Revenue Funds (19,973) Capital Project Funds (775,545) Expendable Trust Funds. (116,521) C Total other financing sources (uses) 726,823 Excess (deficiency) of revenue and C other financing sources over expen- ditures and other financing uses $ (3,704,923) (26,548) (6,268) (15,656) Fund balance (deficit) C Beginning of year 712,276 138,492 76,487 Residual equity transfers in Residual equity transfers (out) C End of year $ 685,728 $ 132.224 $ 60,831 C C -66- C -- --- ~=- I r-- ... il I I I 1994 Actual Improvement Improvement Improvement Improvement Refunding I Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series 1985A 1985B 1986A 1986B 1986C Account Account Account Account Account I $ 7,000 $ 3,085 $ 7,770 $ 33,473 $ 189,403 5,401 176 48,006 9,461 90,864 I 12,401 3,261 55,776 42,934 280,267 - I 20,000 220,000 125,000 290,000 210,000 14,525 107,190 80,440 59,730 130,445 I 646 3,461 660 662 663 - 35,171 330,651 206,100 350,392 341,108 - I (22,770) (327,390) (150,324) (307,458) (60,841) - ~ - I ~ - 327,282 325,000 - I - - - - - - I 327,282 325,000 - - I - (22,770) (108) (150,324) 17,542 (60,841) - - I - 186,012 8,793 1,081,472 (14,361) 1,774,639 - I - - $ 163,242 $ 8,685 $ 931,148 $ 3,181 $ 1,713,798 - I - I (continued) - - -67- ~ I I 1 CITY OF ANDOVER Special Assessment Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) Budget and Actual Year Ended December 31, 1994 (with Comparative Totals for Year Ended December 31, 1993) O Actual 1994 Improvement Improvement Improvement Bonds 1991B Bonds of Bonds of j 1989 G.O. Bonds 1992 1993A Account Account Account Account Revenue Special assessments $ 131,563 $ 87,838 $ 900,140 $ 1,422,283 j Other revenue Interest earned on investments 23,351 52,964 245,478 27,675 Total revenue 154,914 140,802 1,145,618 1,449,958 Expenditures Debt service Principal retirement 300,000 3,400,000 — 365,000 r Interest 158,700 91,800 182,400 144,905 Other 694 559 1,186 1,716 Total expenditures 459,394 3,492,359 183,586 511,621 Excess (deficiency) of revenue over expenditures (304,480) (3,351,557) 962,032 938,337 Other financing sources (uses) Bond proceeds — — — — Operating transfers in Debt Service Funds — — Capital Project Funds — 1,311,580 Operating transfers (out) [!' Special Revenue Funds — — (17,243) (2,730) Capital Project Funds — — (302,800) (472,745) o Expendable Trust Funds — — (91,840) (24,681) Total other financing sources (uses) — 1,311,580 (411,883) 500,156 Excess (deficiency) of revenue and other financing sources over expen— ditures and other financing uses (304,480) (2,039,977) 550,149 438,181 Fund balance (deficit) Beginning of year 1,001,334 1,811,224 3,594,539 125,212 Residual equity transfers in — 228,753 — — Residual equity transfers (out) — — — — Q End of year $ 696,854 $ — $ 4,144,688 $ 563,393 I i -68- ; I I I I I I I I -I I I = I -I -I - I 1 -I - I _I l Improvement Bonds Series 1994C Account $ 46,190 956 47,146 18,275 18,275 28,871 58,852 58,852 87,723 $ 87,723 Improvement Bonds Series 1994D Account $ 798,467 18,367 816,834 27,648 27,648 789,186 8,521 8,521 797,707 $ 797,707 Total $ 3,682,954 555,397 4,238,351 5,020,000 1,015,465 57,752 6,093,217 (1,854,866) 67,373 1,963,862 (19,973) (775,545) (116,521) 1,119,196 (735,670) 10,496,119 228,753 $ 9,989,202 Over (Under) Budget $ 2,276,454 260,127 2,536,581 (91,801) 51,502 (40,299) 2,576,880 67,373 325,000 392,373 $ 2,969,253 -69- 1993 Actual $ 4,609,828 452,927 5,062,755 4,595,000 1,234,105 32,681 5,861,786 (799,031) 498,000 981,920 1,574,357 (3,375) (256,738) (36,673 ) 2,757,491 1,958,460 6,929,449 2,225,208 (616,998) $ 10,496,119 01Y OF ANDOVER ~ Capital Project Funds C Combining Balance Sheet As of December 31,1994 (with Comparative Totals as of December 31,1993) C City C 1992 1994 Buildings State- Tax Equipment Equipment Construction Aid Increment Assets C Cash and temporary investments (deficit) $ 115,244 $ 100,082 $ 57,285 $ 330,252 $ 868,529 m Investments Receivables Accounts Accrued interest 2,096 1,813 1,066 9,838 17,079 ~ :' Delinquent taxes 1,591 Delinquent special assessments 146 Deferred special assessments 19,451 C Due from other governmental units 102,372 2,123 Due from developer 177,544 Prepaid items C , Total assets $ 117,340 $ 101,895 $ 58,351 $ 462,059 $ 1,066,866 Liabilities and Fund Balance (Deficit) m l' Liabilities Accounts payable $ 109,170 $ 63,737 $ 1,334 $ 497 $ 37,812 C Contracts payable 26,737 Accrued items Due to other funds C Deposits payable Deferred revenue 39,226 179,135 Arbitrage rebate Total liabilities 109,170 63,737 1,334 39,723 243,684 C Fund balance (deficit) Reserved for long-term investments C Unreserved Designated for capital projects 57,017 441,704 823,182 Designated for equipment 8,170 38,158 C Undesignated (19,368) Total fund balance (deficit) 8,170 38,158 57,017 422,336 823,182 Total liabilities and C fund balance (deficit) $ 117,340 $ 101,895 $ 58,351 $ 462,059 $ 1,066,866 C C -70- C - -- --" ~-l - I I I I Permanent Kelsey Special Improvement Round Lake Totals Park Assessment Revolving Park 1994 1993 - I I $ 260,750 $ 3,488,298 $ 517,412 $ (50,707) $ 5,687,145 $ 5,431,682 515,076 515,076 6,137 418 6,555 498 I 4,741 69,592 8,177 114,402 223,573 1,591 3,851 76,775 30,235 107,156 108,330 I 942,000 556,110 1,517,561 1,309,033 3,433 230 108,158 29,037 177,544 191,244 I 410 410 410 - $ 265,491 $ 5,101,721 $ 1,112,582 $ (50,707) $ 8,235,598 $ 7,297,658 - I - I $ 19,280 $ 85,962 $ 3,750 $ 1,111 $ 322,653 $ 138,586 - 112,006 138,743 334,960 - - 14,052 - I 20,000 20,000 20,000 . 7,000 - 1,018,777 586,344 1,823,482 1,632,086 - 3,890 3,890 3,890 I 19,280 1,216,745 593,984 21,111 2,308,768 2,150,574 - - ~ ~ 515,076 515,076 - I 1 246,211 3,369,900 518,598 5,456,612 6,259,544 - 46,328 275,058 - - I (71,818) (91,186) (1,387,518) - 246,211 3,884,976 518,598 (71,818) 5,926,830 5,147,084 - - - ~ I - - $ 265,491 $ 5,101,721 $ 1,112,582 $ (50,707) $ 8,235,598 $ 7,297,658 = - I ~ - - - I - -71- - li I 11 I ~ CITY OF ANDOVER C Capital Project Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1994 (with Comparative Totals for Year Ended December 31, 1993) City 1992 1994 Buildings State- Tax Equipment Equipment Construction Aid Increment Revenue Tax increments $ - $ - $ - $ - $ 707,388 Special assessments - - - 8,852 - Intergovernmental revenue State aid - - - 702,030 - Other revenue Interest earned on investments 4,027 5,857 3,796 24,568 34,095 Q ` Park dedication fees - - - - - Refunds and reimbursements - - - - - Miscellaneous - - - - 23,877 Total revenue 4,027 5,857 3,796 735,450 765,360 Expenditures Capital projects Capital outlay 114,795 117,699 7,067 69,204 1,492,001 Interest - - - - 291 Total expenditures 114,795 117,699 7,067 69,204 1,492,292 i Excess (deficiency) of revenue over expenditures (110,768) (111,842) (3,271) 666,246 (726,932) Other financing sources (uses) Q Bond proceeds - 150,000 - - - Sale of property - - - - 26,786 Operating transfers in Debt Service Funds - - - - Capital Project Funds - - - - - Enterprise Funds - - - - - Operating transfers (out) General Fund - - - - (30,000) Special Revenue Funds - - - - - Debt Service Funds - - - - - p Capital Project Funds - - - (280,586) - Expendable Trust Funds - - - - - i Total other financing sources (uses) - 150,000 - 2( 80,586) (3,214) Excess (deficiency) of revenue and other financing sources over expen- ditures and other financing uses (110,768) 38,158 (3,271) 385,660 (730,146) Fund balance Beginning of year 118,938 - 60,288 36,676 1,553,328 Residual equity transfers in - - - - - !' Residual equity transfers (out) - - - - - End of year $ 8,170 $ 38,158 $ 57,017 $ 422,336 $ 823,182 p -72- I I I I Permanent Kelsey I Special Improvement Round Lake Totals Park Assessment Revolving Park 1994 1993 $ $ $ $ $ 707,388 $ 691,857 I 449,379 195,673 653,904 599,662 702,030 248,949 I 10,642 143,145 20,767 1.311 248,208 585,295 140,074 140,074 11 0,366 84,895 I 85,288 109,165 68,321 150,716 677,812 216,440 1,311 2,560,769 2,389,345 - I 95,732 3,116,107 59,020 116,081 5,187,706 3,932,175 61,291 148 61,730 50,124 I 95,732 3,177,398 59,020 116,229 5,249,436 3,982,299 I 54,984 (2,499,586) 157,420 (114,918) (2,688,667) (1,592,954) - - 4,741,228 4,891,228 3,570,997 - I 26,786 - 775,545 775,545 276,738 1,675,765 1,675,765 1,097,042 ~ I 20,000 20,000 20,000 (30,000) (30,000) - I (2,584) (2,584) (304) I (1,963.862) (1,963.862) (2,556.277) (1.395.179) (1.675.765) (1.097,042) (19,947) (19.947) (938) j I 3,810.966 20.000 3.697.166 1.280,216 = - ~ I 54.984 1.311,380 177,420 (114.918) 1,008,499 (312.738) - I 191,227 2.573,596 569,931 43.100 5,147.084 7,008,171 ! 71.401 - (228,753) (228.753) (1,619.750) - - - I $ 246,211 $ 3,884,976 $ 518,598 $ (71.818) $ 5,926,830 $ 5,147.084 ~ - - I "1 :i I -73- I . .. ., CITY OF ANDOVER State-Aid Capital Project Fund Balance Sheet As of December 31,1994 (with Comparative Totals as of December 31,1993) State-Aid State-Aid Revolving Project Totals Account Account 1994 1993 Assets Cash and temporary investments (deficit) $ (103,734) $ 433,986 $ 330,252 $ 38,980 Receivables Accrued interest 1,963 7,875 9,838 10,396 Delinquent special assessments 146 146 Deferred special assessments 19,451 19,451 26,730 Due from other governmental units 102,372 102,372 19,628 Total assets $ 20,198 $ 441,861 $ 462,059 $ , 95,734 Liabilities and Fund Balance liabilities Accounts payable $ 340 $ 157 $ 497 $ Accrued items 12,700 Deferred revenue 39,226 39,226 46,358 Total liabilities 39,566 157 39,723 59,058 Fund balance (deficit) Umeserved Designated for capital projects 441,704 441,704 468,376 Undesignated (19,368) (19,368) (431,700) Total fund balance (deficit) (19,368) 441,704 422,336 36,676 Total liabilities and fund balance $ 20,198 $ 441,861 $ 462,059 $ 95,734 -74- - =-----f,::;........_.;. [ C ~ IiIl ~ C C m m m m c 01 C C C C c' 01 I c' I I CITY OF ANDOVER I State-Aid Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1994 I (with Comparative Totals for Year Ended December 31,1993) I State-Aid State-Aid Revolving Project Totals I Account Account 1994 1993 Revenue I Special assessments $ 8,852 $ $ 8,852 $ 7,722 Intergovernmental revenue State aid 679,680 22,350 702,030 248,949 I Other revenue Interest earned on investments 16,076 8,492 24,568 22,700 Refunds and reimbursements 84,895 I Total revenue 704,608 30,842 735,450 364,266 Expenditures I Capital projects Capital outlay 16,370 52,834 69,204 55,800 Interest 24,276 -I Total expenditures 16,370 52,834 69,204 80,076 Excess (deficiency) of I revenue over expenditures 688,238 (21,992) 666,246 284,190 Other financing uses I Operating transfers (out) - Capital Project Funds (275,906) (4,680) (280,586) I Excess (deficiency) of - revenue over expenditures - and other financing uses 412,332 (26,672) 385,660 284,190 I Fund balance (deficit) - Beginning of year (431,700) 468,376 36,676 (247,514) I End of year $ (19,368) $ 441,704 $ 422,336 $ 36,676 - - - I ~ - - - I - - I - -75- . I I '" i CITY OF ANDOVER Tax Increment Capital Project Fund Balance Sheet As of December 31, 1994 (with Comparative Totals as of December 31, 1993) TIF TIF Project Project 1 -1 1 -2 Totals Account Account 1994 1993 Assets Cash and temporary investments $ 136,297 $ 732,232 $ 868,529 $ 1,559,481 Receivables Accrued interest 5,355 11,724 17,079 48,394 Delinquent taxes 1,591 - 1,591 3,851 Due from other governmental units 2,123 - 2,123 5,344 Due from developer - 177,544 177,544 191,244 i Total assets $ 145 $ 921,500 $ 1,066,866 $ 1,808,314 Liabilities and Fund Balance Liabilities Accounts payable $ 37,531 $ 281 $ 37,812 $ 52,891 Contracts payable 26,737 - 26,737 - Deposits payable - - - 7,000 I' Deferred revenue 1,591 177,544 179,135 195,095 Total liabilities 65,859 177,825 243,684 254,986 Fund balance Unreserved Designated for capital projects 79,507 743,675 823,182 1,553,328 Total liabilities and fund balance $ 145,366 $ 921,500 $ 1,066,866 $ 1,808,314 -76- I I CITY OF ANDOVER I Tax Increment Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1994 I (with Comparative Totals for Year Ended December 31, 1993) I TIP TIP Project Project I 1-1 1-2 Totals Account Account 1994 1993 I Revenue Tax increments $ 495,166 $ 212,222 $ 707,388 $ 691,857 Other revenue I Interest earned on investments 7,931 26,164 34,095 120,830 Miscellaneous 23,877 23,877 14,069 Total revenue 503,097 262,263 765,360 826,756 I Expenditures Capital projects I Capital outlay 1,461,220 30,781 1,492,001 327,108 Interest 291 291 789 Total expenditures 1,461,511 30,781 1,492,292 327,897 I Excess (deficiency) of revenue over expenditures (958,414) 231,482 (726,932) 498,859 I Other financing sources (uses) Bond and certificate proceeds 464,069 Sale of property 26,786 26,786 ~ I Operating transfers (out) = General Fund (24,000) (6,000) (30,000) (30,000) Total other financing sources (uses) 2,786 (6,000) (3,214) 434,069 - I - Excess (deficiency) ofrevenue and - other financing sources over expen- - I ditures and other financing uses (955,628) 225,482 (730,146) 932,928 - - - - Fund balance - I Beginning of year 1,035,135 518,193 1,553,328 620,400 - - - $ $ 743,675 $ $ 1,553,328 - End of year 79,507 823,182 - I - - - I - - - ~ - I -77- ! I ~ :;; } CITY OF ANDOVER Special Assessment Capital Project Fund Balance Sheet As of December 31, 1994 (with Comparative Totals as of December 31,1993) Water Trunk Account Improvement Bonds Series 1992 Construction Account Sewer Trunk Account Assets Cash and temporary investments Investments Receivables Accounts Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units Prepaid items $ 9,703 $ 429,169 $ 682,869 206,856 9,816 1,687 15,335 76,659 116 560,576 271,137 3,424 9 $ 660,178 $ 702,118 $ 905,060 Total assets liabilities and Fund Balance Liabilities Accounts payable Contracts payable Accrued items Deferred revenue Total liabilities Fund balance (deficit) Reserved for long-term investments Umeserved Designated for capital projects Undesignated Total fund balance Total liabilities and fund balance -78- ---~ t ~ C ~ ~ c m m m, I 01 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 iii J I II Improvement Bonds Series 1993A Construction Account $ 1,016,807 308,220 22,051 $ 1,347,078 $ 3,044 3,044 308,220 1,035,814 1,344,034 $ 1,347,078 Improvement Bonds Series 1994C Construction Account $ 605,908 5,548 $ 611,456 $ 2,814 14,037 16,851 594,605 594,605 $ 611,456 Improvement Bonds Series 1994D Construction Account $ 571,078 6,137 15,155 $ 592,370 $ 50,371 97,969 148,340 444,030 444,030 $ 592,370 Unfinanced Improvement Account $ 172,764 110,287 410 $ 283,461 $ 28,919 110,287 139,206 144,255 144,255 $ 283,461 -79- 1994 $ 3,488,298 515,076 6,137 69,592 76,775 942,000 3,433 410 $ 5,101,721 Totals 1993 $ 2,822,783 143,467 84,264 756,662 3,861 410 $ 3,811,447 $ 85,962 $ 60,613 112,006 334,960 1,352 1,018,777 840,926 1,216,745 1,237,851 515,076 3,369,900 3,529,414 (955,818) 3,884,976 2,573,596 $ 5,101,721 $ 3,811,447 CITY OF ANDOVER r .. Special Assessment Capital Project Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance " Year Ended December 31,1994 (with Comparative Totals for Year Ended December 31,1993) ~ Improvement ~ Bonds Water Sewer Series 1992 Trunk Trunk Construction ~ Account Account Account ill Revenue Special assessments $ 214,237 $ 11,504 $ W Other revenue Interest earned on investments 43,186 Miscellaneous 45,070 22,886 !IIII i Total revenue 259,307 34,390 43,186 .. Expenditures ~ Capital projects ~ Capital outlay 1,350 8,632 7,646 Interest 4,006 10,681 ~ Total expenditures 5,356 19,313 7,646 III Excess (deficiency) ofrevenue over expenditures 253,951 15,077 35,540 ~ Other financing sources (uses) . Bond proceeds 0 Operating transfers in Debt Service Funds 108,953 666,592 Capital Project Funds 0 , Operating transfers (out) Special Revenue Funds Debt Service Funds (1,355,760) (608,102) C Capital Project Funds Expendable Trust Funds Total other financing sources (uses) (1,246,807) 58,490 C Excess (deficiency) of revenue and other financing sources over expen- ditures and other financing uses (992,856) 73,567 35,540 C Fund balance (deficit) Beginning of year 1,014,984 357,297 869,520 ~ Residual equity transfers (out) ~ End of year $ 22,128 $ 430,864 $ 905,060 IIIIl t! i .. -80- 0 !Ill jj.j ---- ------- l--=i-r- - I I I I hnprovement hnprovement hnprovement Bonds Bonds Bonds Series 1993A Series 1994C Series 1994D Unfinanced I Construction Construction Construction hnprovement Totals Account Account Account Account 1994 1993 I $ $ $ $ 223,638 $ 449,379 $ 446,398 I 72,305 7,385 20,173 96 143,145 383,048 5,302 12,030 85,288 51,480 72,305 7,385 25,475 235,764 677,812 880,926 I I 71,179 227,013 2,106,534 693,753 3,116,107 3,388,136 6,727 39,877 61,291 25,059 71,179 227,013 2,113,261 733,630 3,177,398 3,413,195 I 1,126 (219,628) (2,087,786) (497,866) (2,499,586) (2,532,269) I 1,069,573 3,671,655 4,741,228 3,106,928 775,545 256,738 I 55,295 1,620,470 1,675,765 1,097,042 ~ - (2,584) (2,584) (304) " I (1,963,862) (2,556,277) - (255,340) (1,139,839) (1,395,179) (1,097,042) (19,947) (19,947) (938) - I 55,295 814,233 2,531,816 1,597,939 3,810,966 806,147 - - - - = - I - 56,421 594,605 444,030 1,100,073 1,311,380 (1,726,122) - = I - 1,287,613 (955,818) 2,573,596 5,466,785 - - (1,167,067) - I - $ 1,344,034 $ 594,605 $ 444,030 $ 144,255 $ 3,884,976 $ 2,573,596 ~ - - - ~ I .. - -81- II I .. \ C CIlY OF ANDOVER i' Enterprise Funds ~ Combining Balance Sheet ' ' As of December 31, 1994 (with Comparative Totals as of December 31,1993) ~ Totals C Water Sewer 1994 1993 Assets m Current assets Cash and temporary investments $ 479,659 $ 179,188 $ 658,847 $ 473,057 W Receivables Accounts 93,011 181,437 274,448 227,292 Accrued interest 7,838 3,080 10,918 12,402 Delinquent special assessments 3,703 3,703 2,459 ... Deferred special assessments 8,462 8,462 28,706 W. Due from other governmental units 381 381 368 Prepaid items 420 35,283 35,703 30,240 m Inventory 6,106 6,106 5,515 Total current assets 587,034 411,534 998,568 780,039 Property and equipment m Furniture and equipment 391,823 91,079 482,902 380,412 Machinery 898,814 898,814 898,814 C Collection and distribution systems 7,660,844 11,018,681 18,679,525 18,679,525 8,951,481 11,109,760 20,061,241 19,958,751 Less accumulated depreciation 1,365,881 2,254,859 3,620,740 3,179,708 Net property and equipment 7,585,600 8,854,901 16,440,501 16,779,043 C Total assets $ 8,172,634 $ 9,266,435 $ 17,439,069 $ 17,559,082 Liabilities and Fund Equity C Current liabilities C Accounts payable $ 4,331 $ 8,050 $ 12,381 $ 13,692 Accrued items 9,226 7,874 17,100 12,920 Due to other governmental units 189 2,337 2,526 2,689 Deposits payable 75 75 62 C Deferred revenue 1,382 1,382 138 Total current liabilities 13,821 19,643 33,464 29,501 Fund equity C Contributed capital 7,482,406 8,790,186 16,272,592 16,639,805 Retained earnings C Undesignated 676,407 456,606 1,133,013 889,776 Total fund equity 8,158,813 9,246,792 17,405,605 17,529,581 Total liabilities and fund equity $ 8,172,634 $ 9,266,435 $ 17,439,069 $ 17,559,082 C C -82- C ~~ ---- '-"' , I I I I I I I I -I I - I ~I ~ I - I I -I - I I i I ,. i Cl1Y OF ANDOVER Enterprise Funds Combining Statement of Revenue, Expenses, and Changes in Retained Earnings Year Ended IXcember 31, 1994 (with Comparative Totals for Year Ended IXcember 31, 1993) Water Operating revenue User charges Meters Permit fees Penalties Other Total operating revenue $ 406,371 48,238 18,200 8,164 4,134 485,107 Operating expenses Personal services Supplies Meters Other services and charges Disposal charges Total operating expenses 131,586 31,676 599 70,001 233,862 251,245 209,328 41,917 Operating income before depreciation Depreciation Operating income (loss) Other income Interest income 16,774 Income (loss) before operating transfers 58,691 Operating transfers (out) Debt Service Funds Capital Project Funds Total operating transfers (20,000) (20,000) 38,691 Net income (loss) Less contributed asset additions Add credit for depreciation on contnbuted assets (44,638) 191,478 Income closed to retained earnings 185,531 Retained earnings Beginning of year 490,876 $ 676,407 End of year -83- Sewer $ 555,648 11,115 (614) 566,149 73,250 5,408 24,727 362,880 466,265 99,884 231,704 (131,820) 6,783 (125,037) (37,630) (37,630) (162,667) 220,373 57,706 398,900 $ 456,606 1994 $ 962,019 48,238 18,200 19,279 3,520 1,051,256 204,836 37,084 599 94,728 362,880 700,127 351,129 441,032 (89,903) 23,557 (66,346) (37,630) (20,000) (57,630) (123,976) (44,638) 411,851 243,237 889,776 $ 1,133,013 Totals 1993 $ 763,587 53,935 22,983 15,431 24,790 880,726 178,942 33,630 42,372 104,419 349,459 708,822 171,904 407,577 (235,673) 25,423 (210,250) (37,630) (20,000) (57,630) (267,880) 388,900 121,020 768,756 $ 889,776 CITY OF ANDOVER C Enterprise Funds ~ Combining Statement of Cash Flows Year Ended December 31, 1994 (with Comparative Totals for Year Ended December 31, 1993) m Totals Water Sewer 1994 1993 m Cash flows from operating activities Operating income (loss). $ 41,917 $ (131,820) $ (89,903) $ (235,673) Adjustments to reconcile operating income (loss) to net cash provided by operating activities m Depreciation 209,328 231,704 441,032 407,577 Olange in assets and liabilities Receivables m Accounts (18,804) (28,352) (47,156) (29,088) Delinquent special assessments (1,244) (1,244) (72) Deferred special assessments 20,244 20,244 (66) C Due from other governmental units (13) (13) 10,857 Prepaid items (420) (5,043) (5,463) (30,240) Inventory (591) (591 ) 377 Accounts payable (4,059) 2,748 (1,311) (20,040) m Accrued expenses 1,902 2,278 4,180 303 Due to other governmental units (163) (163) 2,689 Deposits payable 13 13 62 C Deferred revenue 1,244 1,244 138 Net cash provided by operating activities 229,123 91,746 320,869 106,824 Cash flows from capital and related financing activities C Acquisition of capital assets (76,905) (25,585) (102,490) (52,444) Cash flows from investing activities C Interest received 17,177 7,864 25,041 22,069 Cash flows from noncapital financing activities C Operating transfer to Capital Project Funds (20,000) (20,000) (20,000) Operating transfer to Debt Service Funds (37,630) (37,630) (37,630) Net cash used by noncapital financing activities (20,000) (37,630) (57,630) (57,630) C Net increase in cash and temporary investments 149,395 36,395 185,790 18,819 C Cash and temporary investments Beginning of year 330,264 142,793 473,057 454,238 End of year $ 479,659 $ 179,188 $ 658,847 $ 473,057 C ; Supplemental schedule of noncash investing, C I capital, and financing activities Assets contributed by other funds $ $ $ $ 2,201,858 C 0, -84- 01 I ._~ ---- - - -;;:----~ I- -- - I I I I I I I I I I -I - I -I - I II -I -I = I )1 ';; CITY OF ANDOVER Water Fund Comparative Balance Sheet As of December 31, 1994 and 1993 Assets Current assets Cash and temporary investments Receivables Accounts Accrued interest Prepaid items 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 items 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 -85- 1994 1993 $ 479,659 $ 330,264 93,011 74,207 7,838 8,241 420 6,106 5,515 587,034 418,227 391,823 314,918 898,814 898,814 7,660,844 7,660,844 8,951,481 8,874,576 1,365,881 1,156,553 7,585,600 7,718,023 $ 8,172,634 $ 8,136,250 $ 4,331 $ 8,390 9,226 7,324 189 352 75 62 13,821 16,128 7,482,406 7,629,246 676,407 490,876 8,158,813 8,120,122 $ 8,172,634 $ 8,136,250 CITY OF ANDOVER Water Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended IXcember 31, 1994 and 1993 Operating revenue User charges Meters Permit fees Penalties Other Total operating revenue Operating expenses Personal services Supplies Meters Other services and charges Total operating expenses Operating income before depreciation Depreciation Operating income (loss) Other income Interest income Income (loss) before operating transfers Operating transfers (out) Capital Project Funds Net income (loss) Less contributed asset additions Add credit for depreciation on contributed assets Income closed to retained earnings Retained earnings Beginning of year End of year 1994 Amount Percent $ 406,371 48,238 18,200 8,164 4,134 485,107 131,586 31,676 599 70,001 233,862 251,245 209,328 41,917 16,774 58,691 (20,000) 38,691 (44,638) 191,478 185,531 490,876 $ 676,407 -86- 83.8 % 9.9 3.8 1.7 0.8 100.0 27.1 6.5 0.1 14.5 48.2 51.8 43.2 8.6 3.5 12.1 % 76.0 % 14.9 6.3 1.5 1.3 100.0 c c ~ ~ m m m m, I c' C c c c c c c c c 01 I 1993 Amount Percent $ 275,584 53,935 22,983 5,681 4,646 362,829 121,250 27,246 42,372 88,032 278,900 83,929 195,640 (111,711) 16,202 (95,509) (20,000) (115,509) 181,927 66,418 424,458 $ 490,876 -- ~... 33.4 7.5 11.7 24.3 76.9 23.1 53.9 (30.8) 4.5 (26.3)% I I I I I I I -I -I -I = I - I ~ I ~ I ~ A I I = I _I II ~ CITY OF ANDOVER Water Fund Statement of Cash Flows Years Ended IXcember 31,1994 and 1993 Cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation Change in assets and liabilities Receivables Accounts Prepaid items Inventory Accounts payable Accrued expenses Due to other governmental units Deposits payable Net cash provided by operating activities Cash flows from capital and related financing activities Acquisition of capital assets Cash tlows from investing activities Interest received Cash tlows from noncapital financing activities Operating transfer to Capital Project Funds Net increase in cash and temporary investments Cash and temporary investments Beginning of year End of year Supplemental schedule of noncash investing, capital, and financing activities Assets contributed by other funds -87- 1994 $ 41,917 209,328 (18,804) (420) (591 ) (4,059) 1,902 (163) 13 229,123 (76,905) 17,177 (20,000) 149,395 330,264 $ 479,659 $ 1993 $ (111,711) 195,640 924 377 (20,241 ) 603 352 62 66,006 (25,053) 14,646 (20,000) 35,599 294,665 $ 330,264 $ 1,142.214 CTIY OF ANDOVER ~ Sewer Fund ~ Comparative Balance Sheet As oflXcember 31,1994 and 1993 ~ ' , 1994 1993 C .Assets Current assets m Cash and temporary investments $ 179,188 $ 142,793 Receivables Accounts 181,437 153,085 W Accrued interest 3,080 4,161 Delinquent special assessments 3,703 2,459 Deferred special assessments 8,462 28,706 ~ I" Due from other governmental units 381 368 ill Prepaid items 35,283 30,240 Total current assets 411,534 361,812 m Property and equipment Furniture and equipment 91,079 65,494 ~ Collection system 11,018,681 11,018,681 . 11,109,760 11,084,175 Less accumulated depreciation 2,254,859 2,023,155 C Net property and equipment 8,854,901 9,061,020 Total assets $ 9,266,435 $ 9,422,832 C liabilities and Fund Equity Current liabilities C Accounts payable $ 8,050 $ 5,302 Accrued items 7,874 5,596 Due to other governmental units 2,337 2,337 0 Deferred revenue 1,382 138 Total current liabilities 19,643 13,373 filii! Fund equity I.J Contributed capital 8,790,186 9,010,559 Retained earnings C Undesignated 456,606 398,900 Total fund equity 9,246,792 9,409,459 ~ Total liabilities and fund equity $ 9.266,435 $ 9,422,832 i.J ~ .. -88- el C -~-- -- --- f---;;;:-=r- I CTIY OF ANDoVER I Sewer Fund Statement of Revenue, Expenses, and Changes in Retained Earnings I Years EndedlXcember 31,1994 and 1993 I 1994 1993 Amount Percent Amount Percent Operating revenue I User charges $ 555,648 98.1 % $ 488,003 94.2% Penalties 11,115 2.0 9,750 1.9 Other (614) .iQ:ll 20,144 3.9 I Total operating revenue 566,149 100.0 517,897 100.0 Operating expenses I Personal services 73,250 12.9 57,692 11.1 - Supplies 5,408 1.0 6,384 1.2 Other services and charges 24,727 4.4 16,387 3.2 I Disposal charges 362,880 64.1 349,459 67.5 Total operating expenses 466,265 82.4 429,922 83.0 I Operating income before depreciation 99,884 17.6 87,975 17.0 Depreciation 231,704 40.9 211,937 40.9 - I Operating loss (131,820) (23.3) (123,962) (23.9) Other income - I Interest income 6,783 1.2 9,221 1.8 - I Loss before operating transfers (125,037) (22.1)% (114,741) (22.1)% - Operating transfers (out) - - - Debt Service Funds (37,630) (37,630) ! I Net loss (162,667) (152,371) - I Add credit for depreciation on contributed assets 220,373 206,973 j Income closed to retained earnings 57,706 54,602 - I j Retained earnings = Beginning of year 398,900 344,298 " I End of year $ 456,606 $ 398,900 - I = - = - - I - -89- - I I ... ! <; CITY OF ANDOVER Sewer Fund Statement of Cash Flows Years Ended IXcember 31,1994 and 1993 1994 1993 Cash tlows from operating activities Operating loss $ (131,820) $ (123,962) Adjustments to reconcile operating loss to net cash provided by operating activities Depreciation 231,704 211,937 Change in assets and liabilities Receivables Accounts (28,352) (30,012) Delinquent special assessments (1,244) (72) Deferred special assessments 20,244 (66) Due from other governmental units (13) 10,857 Prepaid items (5,043) (30,240) Accounts payable 2,748 201 Accrued expenses 2,278 (300) Due to other governmental units 2,337 Deferred revenue 1,244 138 Net cash provided by operating activities 91,746 40,818 Cash flows from capital and related financing activities Acquisition of capital assets (25,585) (27,391 ) Cash flows from investing activities Interest received 7,864 7,423 Cash flows from noncapital financing activities Operating transfer to Debt Service Funds (37,630) (37,630) Net increase (decrease) in cash and temporary investments 36,395 (16,780) Cash and temporary investments Beginning of year 142,793 159,573 End of year $ 179,188 $ 142,793 Supplemental schedule of noncash investing, capital, and financing activities Assets contributed by other funds $ $ 1.059.644 -90- --- -~~- ~ c m m m m m 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 '1i I ! l CITY OF ANDOVER Central Equipment Maintenance Internal Service Fund Comparative Balance Sheet As oflXcember 31,1994 and 1993 1994 1993 Assets Total assets $ 71,185 $ 55,755 181 822 1,360 22,564 21,613 $ 94,752 $ 78,728 Cash and temporary investments Receivables Accounts Accrued interest Inventory Liabilities and Fund Equity liabilities Accounts payable Accrued items Total liabilities Total liabilities and fund equity $ 9,895 $ 5,399 752 790 10,647 6,189 50,000 50,000 34,105 22,539 84,105 72,539 $ 94,752 $ 78,728 Fund equity Contributed capital Retained earnings Umeserved Total fund equity -91- CTIY OF ANDOVER Central Equipment Maintenance Internal Service Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended IXcember 31,1994 and 1993 1994 1993 Operating revenue User charges to other City funds $ 166,770 $ 143,948 Other Miscellaneous 124 Total operating revenue 166,894 143,948 Operating expenses Personal services 43,978 32,667 Supplies 80,784 57,210 Other services and charges 42,498 35,289 Capital outlay 32,193 Total operating expenses 199,453 125,166 Operating income (loss) (32,559) 18,782 Other income Interest income 925 3,757 Income (loss) before operating transfers (31,634) 22,539 Operating transfers in General Fund 43,200 Net income 11,566 22,539 Retained earnings Beginning of year 22,539 End of year $ 34,105 $ 22.539 -92- ~~-1 c ~ ~ m m m m c c c c c c c c c c c, oj I I I I -I I -I I -I I -I -I ~ ~ I -I ~ I .. ; I - I jl II jl ~ CTIY OF ANDOVER Central Equipment Maintenance Internal Service Fund Statement of Cash Flows Years Ended IXcember 31, 1994 and 1993 Cash tlows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Change in assets and liabilities Accounts receivable Inventory Accounts payable Accrued expenses Net cash provided (used) by operating activities Cash flows from investing activities Interest received Cash tlows from noncapital financing activities Operating transfer from General Fund Net increase in cash and temporary investments Cash and temporary investments Beginning of year End of year -93- 1994 1993 $ (32,559) $ 18,782 (181 ) (951 ) (21,613) 4,496 5,399 (38) 790 (29,233) 3,358 1 ,463 2,397 43,200 15,430 5,755 55,755 50,000 $ 71,185 $ 55,755 c ~ m m m m c c c c c c c c c c c c c CITY OF ANDOVER Trust and Agency Funds Combining Balance Sheet As oflXcember 31,1994 (with Comparative Totals as oflXcember 31,1993) Expendable Trust Administrative Flexible Compensated Trust Benefits Absences Assets Cash and temporary investments $ 226,428 $ $ 9,356 Cash and investments held by trustee 3,480 Receivables Accounts 7,624 Accrued interest 4,258 168 Total assets $ 230,686 $ 3,480 $ 17,148 liabilities and Fund Balance liabilities Accounts payable $ $ $ Deposits payable Deferred compensation payable to employees Total liabilities Fund balance Umeserved Designated for employee benefits 3,480 17,148 Designated for assessment administration 230,686 Total fund balance 230,686 3,480 17,148 Total liabilities and fund balance $ 230,686 $ 3,480 $ 17,148 -94- -------=----- ~ l- I I I I Totals I Agency 1994 1993 I $ 667,715 $ 903,499 $ 669,370 52,547 56,027 25,259 - I - 7,624 4,426 5,118 - I $ 720,262 $ 971,576 $ 699,747 ~I I $ 552 $ 552 $ 4,680 - 667,163 667,163 512,919 - 52,547 52,547 25,045 - 720,262 720,262 542,644 ~ - I - ~ - I 20,628 5,911 - 230,686 151,192 - 251,314 157,103 - I . $ 720,262 $ 971,576 $ 699,747 - . I - ~ - I " - - ~ - I - - I - ~ - - - - - I - - ~ -95- ~ i I I '0; CITY OF ANDOVER Expendable Trust Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended Decemrer 31, 1994 (with Comparative Totals for Year Ended December 31, 1993) Flexible Compensated Totals Administrative Benefits Absences Trust Fund Fund Fund 1994 1993 Revenue Other revenue Interest earned on investments $ 8,026 $ $ 338 $ 8,364 $ 9,683 Miscellaneous Payroll withholdings for flexible benefit plan 8,915 8,915 6,745 Other 8,113 8,113 3,046 Total revenue 8,026 8,915 8,451 25,392 19,474 Expenditures Current Miscellaneous Employee benefits 5,649 5,649 7,156 Excess of revenue over expenditures 8,026 3,266 8,451 19,743 12,318 Other financing sources (uses) Operating transfers in General Fund 3,000 3,000 3,000 Debt Service Funds 116,521 116,521 37,611 Capital Project Funds 19,947 19,947 Operating transfers (out) General Fund (65,000) (65,000) (67,498) Total other financing sources (uses) 71,468 3,000 74,468 (26,887) Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses 79,494 3,266 -11,451 94,211 (14,569) Fund balance Beginning of year 151,192 214 5,697 157,103 171,672 End of year $ 230,686 $ 3,480 $ 17,148 $ 251,314 $ 157,103 -96- ------=----p- I c c c ~ flI\ if C m m c c c c c c c c c M III c I 01Y OF ANDOVER I Agency Funds Combining Statement of Changes in Assets and Liabilities Year Ended December 31, 1994 I Balance Balance January 1 Additions Deductions December 31 I Escrow Fund - Assets I Cash and temporary investments $ 517.599 $ 667,715 $ 517,599 $ 667,715 Liabilities I Accounts payable $ 4,680 $ 552 $ 4,680 $ 552 Deposits payable 512,919 667,163 512,919 667,163 - I Total liabilities $ 517,599 $ 667,715 $ 517,599 $ 667,715 ICMA Deferred Comlxmsation Fund I Assets I Cash and investments held by trustee $ 25,045 $ 13,681 $ 498 $ 38,228 - - - - Liabilities - I Deferred compensation payable to employees $ 25,045 $ 13,681 $ 498 $ 38,228 - = PEBSCO Deferred Compensation Fund - I Assets Cash and investments held by trustee $ $ 14,361 $ 42 $ 14,319 I I Liabilities - - - I Deferred compensation payable to employees $ $ 14,361 $ 42 $ 14,319 - - Totals - All Al!;ency Funds ; I Assets - - Cash and temporary investments $ 517,599 $ 667,715 $ 517,599 $ 667,715 - - I Cash and investments held by trustee 25,045 28,042 540 52,547 - $ 542,644 $ 695,757 = Total assets $ 518,139 $ 720,262 I Liabilities - Accounts payable $ 4,680 $ 552 $ 4,680 $ 552 - I Deposits payable 512,919 667,163 512,919 667,163 - Deferred compensation payable to employees 25,045 28,042 540 52,547 - - I Total liabilities $ 542,644 $ 695,757 $ 518,139 $ 720,262 - - . -97- .. I ... I JI .. ~ ~ , ~ .. c ~ ~ m m f'l .. c ,., .. c c c c c' c c c ~i ~ C. - ---~=r-- I I I I -I I I - I -I =1 -I ~ I 11 j I ~ I II ! I ;1 11 i '1 STATISTICAL SECTION (UNA UDITED) --~ I--~_l ~ m m m m m m 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 J I ~ I -I - I ~ I II ;; CITY OF ANDOVER General Fund Revenue by Source Taxes Licenses Fiscal Ad and Intergovernmental Charges for Fines and Other Year Valorem 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 1994 1,472,108 410,733 715,156 . 227,960 40,496 91,323 2,957,776 -98- CTIY OF ANDOVER ~ ~ ~ m m m 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 1994 804,726 970,174 625,805 51,522 294,158 ,., . c ~ ~ -99- c C' Or 01 1 i C I c: I C C --------,:--;~-- I I - I Economic Recycling Development Unallocated Total I $ $ $ 136,209 $ 1,741,276 I 20,112 97,797 2,002,349 39,567 14,289 129,589 2,129,800 - I 46,771 17,447 72,521 2,155,995 - I 39,622 17,659 77,060 2,391,008 - 50,461 22,836 53,691 2,575,052 - I ~ 49,574 21,916 86,278 2,904,153 - I - - I - I -!! I - - - I ~ ~ I -i I 1 ii j I 1 ! - I ~ -i I - I ~ I -100- J I ~ CTIY OF ANDOVER Tax Levies and Collections Percentage 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 1985 $ 689,698 $ 671,021 97.29 % $ 11,222 $ 682,243 98.92 % 1986 802,877 784,514 97.71 18,558 803,072 100.02 1987 880,048 862,018 97.95 19,185 881,203 100.13 1988 995,590 978,595 98.29 16,832 995,427 99.98 1989 1,006,409 987,289 98.10 13,439 1,000,728 99.44 1990 993,164 967,055 97.37 22,178 989,233 99.60 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 1994 1,806,293 1,774,507 98.24 43,566 1,818,073 100.65 Special Assessment Levies and Collections Percentage 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 1985 $ 725,828 $ 660,741 91.03 % $ 70,394 $ 731,135 100.73 % 1986 700,636 662,322 94.53 84,548 746,870 106.60 1987 989,102 903,856 91.38 28,728 932,584 94.29 1988 1,205,379 1,091,675 90.57 83,419 1,175,094 97.49 1989 1,178,982 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 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 1994 557,611 505,500 90.65 44,004 549,504 98.55 Note: Tax levy is net of amounts paid by the State of Minnesota through Homestead and Agricultural Credit Aid (HACA) and Equalization Aid. -101- -.=-::~r- ~ .. ~ ij.J ~ w m m c o c c c c c c c c r-l i.j M 11II c I I I I -I I I I -I I - I ~ I -I i I i I I ~ I - I i I o! .. 79 CTIY OF ANDOVER Computation of Legal Debt Margin IXcember 31,1994 Market value of taxable property $ 602,107.500 Debt limit (2.00% of market value) $ 12,042,150 Amount of debt applicable to debt limit Total bonded debt $ 23,590,000 Less Bonded debt not repayable solely from tax levies Special Assessment hnprovement Bonds 20,285,000 Tax Increment Bonds 1,355,000 State-Aid Street Bonds 200,000 Available in Debt Service Funds 23,337 Net debt applicable to debt limit 1,726,663 Legal debt margin $ 10,315,487 -102- ~ CTIY OF ANDOVER . Schedule of Sources and Uses of Public Funds W For Tax Increment Financing District No. 1-1 Year Ended December 31,1994 ~ Accounted Original for in Current Amount C Budget Prior Years Year Remaining Sources of funds Tax increments $ 8,064,943 $ 1,704,049 $ 495,166 $ 5,865,728 C Special assessments 5,755 (5,755) State credits 57,266 (57,266) Bond proceeds 4,715,000 719,069 3,995,931 ~ Land sales 200,356 26,786 (227,142) Interest 97,470 214,858 7,931 (125,319) . Total sources of funds 12,877,413 2,901,353 529,883 9,446,177 C Uses of funds Capital outlay 5,200,000 674,312 1,461,511 3,064,177 C Administrative costs and other 264,000 11,101 252,899 Debt service Principal 4,810,000 855,000 50,000 3,905,000 C Interest and other costs 3,640,686 112,815 21,592 3,506,279 Total uses of funds 13,914,686 1,653,228 1,533,103 10,728,355 District balance (deficit) (1,037,273) 1,248,125 (1,003,220) (1,282,178) C Transfers (to) other funds (72,000) (24,000) 96,000 Remaining funds (deficit) $ (1,037,273) $ 1.176,125 $ (1,027,220) $ (1,186,178) C SUPPLEMENTAL INFORMATION C Name of District Tax Increment District - Development District No. 1-1 C Type of District and Authorizing Statutes Redevelopment District established in 1986 under Section 472 of Minnesota Statutes for a duration of C 25 years from receipt of first increment. Financing C Total bonds issued General Obligation Tax Increment Bonds Series 1987B $ 205,000 ~ General Ogligation Tax Increment Bonds Series 1993B 520,000 l.i Total bonds issued $ 725.000 01 Outstanding Bonds at IXcember 31, 1994 $ 470,000 C -103- C -~'-l I I I I -I - I - I = I - I - I - I I j I , I , I i -I = I -I 11 ) I .. ,I CITY OF ANDOVER Schedule of Sources and Uses of Public Funds For Tax Increment Financing District No. 1-2 Year Ended IXcember 31,1994 Accounted Original for in Current Amount Budget Prior Years Year Remaining Sources of funds Tax increments $ 2,200,361 $ 1,019,793 $ 212,222 $ 968,346 State credits 277 (277) Bond proceeds 1,004,500 1,044,126 885,000 (924,626) Land sales 7,959 (7,959) Interest 4,500 146,222 34,722 (176,444) Miscellaneous 85,700 23,877 (109,577) Total sources of funds 3,209,361 2,304,077 1,155,821 (250,537) Uses of funds Capital outlay 1,010,375 849,555 30,781 130,039 Administrative costs and other 95,905 29,822 66,083 Debt service Principal 1,025,000 135,000 930,000 (40,000) Interest and other costs 1,029,018 620,836 140,480 267,702 Total uses of funds 3,160,298 1,635,213 1,101,261 423,824 District balance 49,063 668,864 54,560 (674,361) Transfers to other funds (24,000) (6,000) 30,000 Remaining funds $ 49,063 $ 644,864 $ 48,560 $ (644,361) 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 General Obligation Tax Increment Refunding Bonds Series 1994B $ 1,065,000 885,000 Outstanding Bonds at December 31, 1994 $ 1,950,000 $ 885,000 -104- ~ ~ ~ c m ~ .. c c o o c c c c c c ~ c c -'"-=.-- .~ -- 1--..-1 ~ I ~ I ~ I -I - I =1 I I I I I I I I I I I I I SINGLE AUDIT AND OTHER REOUIRED REPORTS 1- c c c c c c ~I' .. ~ W.f m ~ ~ c ~ ~ ~ ~ ~ C D ~--=-l - I I -I I - I - I = I - I - I - I ~:ALLO PRINCIPALS KENNETH w. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover. Minnesota, for the year ended December 31, 1994, and have issued our report thereon dated May 16, 1995. 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. = I - I We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose tinancial 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 Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Andover. The information in this schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. - I - I I #/4: d~ ~/~~~4. May 16, 1995 I I CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545~0569 -105- c c c' o o c c. o 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 Schedule of Federal Financial Assistance Year Ended December 31, 1994 Qurent Year Activity Revenue Federal Federal State Federal GrantorlPass- Through CFDA Grant and GrantorlProgram Title Number Amount Federal Local Expenditures U.S. Department of Housinl! and Urban Development Passed Through Anoka County Community Development Block Grant 14.218 $ 127,937 $ 50,422 $ 162 $ 50,584 Commissioner of Natural Resources Cooperative Forestry Assistance 10.664 $ 24,000 8,550 8,550 Total federal financial assistance $ 58,972 $ 162 $ 59,134 Note 1: Federal grant amount includes any carryover from previous grant year entitlements as well as any program revenue earned that increases the funds available. Note 2: Community Development Block Grant revenues and expenditures on the City's financial statements reflect the effects of adjustments to prior years' accruals. -106- 01 C C C C c m m t c r ~ c c c c c o c c --~~- - - I I - I - - - I ~ ~ - I - - I -I - I I I I I I I I I I I I I PRINCIPALS KENNETH W MALLOY, CPA THOMAS M. MONTAGUE, 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, 1994. and have issued our report thereon dated May 16, 1995. 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 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, 1994, 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) CERTIFIED PUBLIC ACCC>UNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -107- I C' I Or C! C C C c m m c ~ c c ~ P'l. I.J C C C C ...... ! i I 1 l - ~ - I ~ 1 I ~ - I ~ I - - I I I I I I I I I I I I I I For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash receipts/revenue, cash disbursements/expenditures, payroll. external financial reporting, and grant administration. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. 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 ofthe 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. 1994, and this report does not affect our reports thereon dated May 16, 1995. 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 May 16, 1995. 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. 44 ~~~///~~~~~ May 16, 1995 -108- 01 C c c c c c m c ~ : . ill .. c c c c c c c . - .......... I - I - ~ - I ~MALLOV MONTAGUE KARNOWSKI RADOSEVICH &CO., P.A. PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA -I -I -I = I INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING I I I I FEDERAL FINANCIAL ASSISTANCE PROGRAMS City Council and Residents City of Andover Andover, Minnesota 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, 1994, and have issued our report thereon dated May 16, 1995. 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 (OM B) 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. I In planning and performing our audit for the year ended December 31, 1994, 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 May 16, 1995. I I I I I (continued) CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -109- I M . IW c o c C 01 mi "': ~ c c ~ ~ ~ ~ c c c c c c --- H '" ! I 1 I - I - - ~ I - - I - I c 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 evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Requirements o Political activity Civil rights Cash management Relocation assistancelreal property acquisition Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements o o o o o o o Soecific Reouirements 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, 1994, the City had no major federal financial assistance programs and expended 85.5 % of its total federal financial assistance under the following nonmaj or federal financial assistance program: Community Development Block Grant (CDBG). (continued) -110- I ~.. . I.J" c c c c c m c : t c C c ~ c c c c c -~ _ 1-----":.-,- I i I " i ~ " I - - ~ I - - - - I - I - I ~ - I - I I I I I I I I I 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 federal financial assistance programs in accordance with applicable laws and regulations. Because of the limited size of your office staff, your organization has limited segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this condition. 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 functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and. accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable 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. 1994, and this report does not affect our reports thereon dated May 16, 1995. 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 May 16, 1995. 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: 4~~/~1~~ May 16, 1995 -111- I Oi I C! C C C c m I m! I !!'\.. I ~. ~ t ~ C ~ C C C C C -~ '" !! 'I II I - I -I ~ I -I -I I I I I I I I I I I I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S COMPLIANCE REPORT BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31. 1994, and have issued our report thereon dated May 16, 1995. 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 Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Andover is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws. regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City of Andover complied. in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. This report is intended for the information of the City Council 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~~~~~~4-~ May 16, 1995 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA55416 TELEPHONE: 612-545-0424 TElEFAX: 612-545-0569 -112- c c c C' ; . . c c' o ~ ~, I ml ~ !II II. ~ ~ ~ Il.I c c c c c c .. .; .. i I J - I ~ I - I ~ I - I I I -I I I I I I I I I I I ~MALLOV MONTAGUE KARNO,^,SKI RADOSEVICH &CO., P.A. PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M. MONTAGUE, 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. 1994, and have issued our report thereon dated May 16, 1995. 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 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, 1994: 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. ff4~~~~/~~. May 16. 1995 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -113- ~ .. ~ L.j ~ ... c c c m m c ~ (: : II [ t C L t C C C C ........ .. i t I - I -I I - I - I - I I - I I I I I I I I I I I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REOUlREMENTS 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, 1994. and have issued our report thereon dated May 16, 1995. 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, 1994. 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. #44~~/~~~~ May 16, 1995 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE; 612-545-0424 TELEFAX: 612-545-0569 -114- fII! Ii ... ~ "'I c c c C 01 Ii ~ C ~ t C C ~ C C C C C t ~ t i I PRINCIPALS KENNETH w. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA .. ~ I I I - I I - I -I I I I I I I I I I I I I INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH MINNESOTA STATE LAWS AND REGULATIONS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1994, and have issued our report thereon dated May 16, 1995. 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 Lelral Compliance 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 Lelral Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City of Andover complied with the material terms and conditions of applicable legal provisions, 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 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. ~~~~~/~~~~ May 16, 1995 CERTIFIED PUBLIC ACCC>UNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -115- .... r - C.' F' C C C c c "I II' .. ~ ~ .. t " ll. E .- '- C C C C - h i j I Ii 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, 1994 This schedule summarizes findings and questioned costs relating to compliance with Minnesota Statutes and requirements applicable to federal programs. The auditor, Malloy, Montague. 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 1. 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. Type of Finding This is a current and prior year finding. 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 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) -116- .. 1! i ~ c C I or C C' I I ~' ill Oi I ~: ~ if C C C C ~ C C c ~ --- -j,..--,!~I I I I II ~ J 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, 1994 4. Planned ComDletion Date for CAP This policy will be implemented in 1995 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. -117- o c ~ ill ~' c r .. c c c c ~ ~ ~ c c c c c c ~ l..-I - - ---=--=--- .- II 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, 1994 FINDING AND QUESTIONED COST 1. Prol[ram/Law Federal Financial Assistance Programs - Administrative Requirements (Common Rule) 2. Findinl[ "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 Findinl[ As the City has never maintained auditable fixed asset records, this condition was present in previous years as well as the current year. 4. Questioned Cost None CORRECTIVE ACTION PLAN (CAP) 1. Explanation of Disal[reement With Audit Findinl[ There is no disagreement with the audit finding. 2. Actions Planned in Response to Findinl[ 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 Resnonsible for Ensurinl[ CAP Not applicable 4. Planned Comnletion Date for CAP Not applicable 5. Plan to Monitor Completion of CAP Not applicable -118- fiI.te I ~i ~I C c C C C C C [ C C C C C o C c m - W-j-'