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Home My WebLink About1995 CAFR CITY OF ANDOVER ' Financial Report Year Ended December 31, 1995 -i =1 �1 �1 =1 1 ;jjjjjj",;jj~~- n III M ~ D ~ ~ ~ ~ ~ ~ ~ c m m c c C i' ml Ii m ,., .. -1 - I -- - - I I I I I I I I I I I I I I I ~I j - 11 JI 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 C01llbining 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 -....j~- ~ ~ .. I: I .. ~ c o m D C ~ m I m C ~ mi I mi ml m m WI I I - I CITY OF ANDOVER I Financial Report I Table of Contents (continued) I Page I COMBINING AND INDIVIDUAL FUND STATEMENTS (CONTINUED) Debt Service Funds (continued) Tax Increment Bonds Debt Service Fund I Balance Sheet 59 Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual 60 - 61 I Special Assessment Bonds Debt Service Fund Balance Sheet 62 - 65 Statement of Revenue, Expenditures, and I Changes in Fund Balance - Budget and Actual 66-69 Capital Project Funds Combining Balance Sheet 70 - 71 I Combining Statement of Revenue, Expenditures, and Changes in Fund Balance 72 - 73 State-Aid Capital Project Fund Balance Sheet 74 I Statement of Revenue, Expenditures, and Changes in Fund Balance 75 Tax Increment Capital Project Fund Balance Sheet 76 I Statement of Revenue, Expenditures, and Changes in Fund Balance 77 Special Assessment Capital Project Fund Balance Sheet 78 - 79 I Statement of Revenue, Expenditures, and Changes in Fund Balance 80 - 81 Enterprise Funds Combining Balance Sheet 82 I Combining Statement of Revenue, Expenses, and Changes in Retained Earnings 83 - Combining Statement of Cash Flows 84 I Water Fund Comparative Balance Sheet 85 - - Statement of Revenue, Expenses, I and Changes in Retained Earnings 86 , Statement of Cash Flows 87 Sewer Fund I Comparative Balance Sheet 88 Statement of Revenue, Expenses, - and Changes in Retained Earnings 89 I Statement of Cash Flows 90 j Central Equipment Maintenance Internal Service Fund 0 Comparative Balance Sheet 91 ~ Statement of Revenue, Expenses, ~ I and Changes in Retained Earnings 92 j Statement of Cash Flows 93 j I 1 = ~ L ----:::-~ -I r .. ~ m t fM * m m m c ~ m m. I ml c Ci . I mi C Q: I m: i i ~ I I I I I I I I I I I I I -I I I 11 ~ -I " i , is , ~- 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 and Special Assessment Levies and Collections Computation of Legal Debt Margin Schedule of Sources and Uses of Public Funds for Tax Increment Financing Development District No.1 98 99 - 100 101 102 103 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 and Questioned Cost 104 105 106 - 107 108 - 110 111 112 113 114 115 o ~ I.i c u m C ~ c ~ c c ~ c m m w; I Wi m C . ~~---l -- III;;L - tr-=' 1 I I I I I I I I I I I I I I -I I -I ,I j. 111 CITY OF ANDOVER Elected and Appointed Officials December 31, 1995 Term of Office Expires Last Business Day of December Elected Mayor J. E. McKelvey 1996 Council Bonnie Dehn Donald Jacobson John Kunza Mike Knight 1998 1996 1998 1996 Appointed Richard Fursman - City Administrator Jean McGann - Finance Director Shirley Clinton - Treasurer Victoria V olk - Clerk -1- 1M 1.1 ~ Ii I ~ c c C D ~ ~ c c ~ .. c c W Q W w ~ ~ '= .-=0-- - ~ r--------------- -- I I I I I I I D I I I cl I -I I ~I ~I l I j I FINANCIAL SECTION - o ". w ~ ~ ~ c ~ ~ ~ m ~ m w c m ~ ~i I I mi .. m .. m i- I ~~I--- I I I I I D -I I I I I - I I I - I -I -I I ,I L PRINCIPALS KENNETH w. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA WILLIAM J. LAUER, CPA ~MALLOV MONTAGUE . KARNOWSKI RADOSEVICH &CO., P.A. INDEPENDENT AUDITOR'S REPORT City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose fmancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, 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 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 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The general purpose financial statements include the fmancial 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, 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 fmancial position of the City of Andover at December 31, 1995, 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. In accordance with Government Auditing Standards, we have also issued a report on our consideration of the City of Andover's internal control structure and a report on its compliance with laws and regulations, both dated March 22, 1996. (continued) CERTIFIED PUBLIC ACCOUNTANTS 410 PAAK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -2- c ~ ~ c c ~ c ~ ~ ~! ! ~! I Wi ~i I ml I ~I ~I I I m' m .. -. W m c --:;~ I I I I I D I I I I I I I I -I -, I -I CI 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 fmancial 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. .111~, ?/I~r, !{~/'1?~ ~ &"JP.A. March 22, 1996 -3- ~ ll.I C C C ~ ~ ~ ~ ~ .-----.1 ~~. c ~ ~ ~ m ~i I ~I mi I Q' ml - -- I I I I I "I cD D -8 I I I ,I D D I D I -I GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF ANDOVER Combined Balance Sheet All Fund Types and Account Groups As of December 31,1995 (with Comparative Totals as of December 31,1994) General Assets and Other Debits Assets Cash and temporary investments Cash and investments held by trustee 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 Total assets and othc:r debits $ 1,891,782 See notes to fmancial statements -4- ---:-~-;-="'-I Governmental Fund Types Special Revenue $ 152,626 Debt Service $ 12,660,645 Capital Proj ect $ 9,779,896 ~-l D ~ ~ C C C C D C C C t D C C ~ C ~ C ~ I I I I I I I I I I I I I I I D I I I Proprietary Fund Types Fiduciary Fund Type Totals (Memorandum Only) Account Groups General General Fixed Assets Long-Term (Unaudited) Debt Enterprise Internal Service 1994 Trust and Agency 1995 $ 834,206 $ 50,149 $ 567,969 $ $ $ 18,537,200 $ 18,731,952 93,130 93,130 56,027 367,618 430,478 328,097 19,709 456 5,166 438,002 305,697 50,827 61,436 5,272 87,355 153,743 8,462 6,356,233 3,749,519 173 181,543 213,014 20,000 20,000 163,070 177,544 47,525 92,728 101,228 9,692 28,422 72,332 30,047 20,850,729 7,861,223 28,711,952 22,366,681 7,848,274 7,848,274 10,038,090 18,575,392 18,575,392 14,136,655 $ 22,143,386 $ 79,027 $ 666,265 $ 7,861,223 $ 26,423,666 $ 81,658,516 $ 70,469,730 (continued) -5- CITY OF ANDOVER Combined Balance Sheet (continued) All Fund Types and Account Groups As of December 31,1995 (with Comparative Totals as of December 31,1994) Governmental Fund Types Special Debt Capital General Revenue Service Project Liabilities, Equity, and Other Credits Liabilities Accounts payable $ 67,550 $ 1,516 $ $ 104,505 Contracts payable 287,408 Accrued items 15,810 1,338 Due to other funds 20,000 Due to other governmental units 69,427 Deposits payable Deferred revenue 42,095 40,628 4,811 ,818 1,809,099 Arbitrage rebate 553 3,890 Contracts for deed Bonds and certificates payabk Deferred compensation payable to employees Total liabilities 194,882 43,482 4,812,371 2,224,902 Equity and other credits Investment in general fixed assets Contributed capital Retained earnings Umeserved Fund balance (deficit) Reserved for debt service 8,169,655 Reserved for long-term investments Umeserved Designated for employ<:e benefits Designated for assessment administration Designated for working capital 1,530,047 Designated for capital projects 8,740,772 Designated for equipmemt 619,954 Designated for future expenditures 166,853 Undesignated 109,144 (321,381 ) (1,805,732) Total equity and other credits 1,696,900 109,144 7,848,274 7,554,994 Total liabilities, equity, and other credits $ 1,891,782 $ 152,626 $ 12,660,645 $ 9,779,896 See notes to financial statements -6- ,-===:=: l~ _~o=::r D C C C C C ~ D ~ " iii C C C ~ ~ C ~ ~ C a a Proprietary Fiduciary Totals Fund Types Fund Type Account Groups (Memorandum Only) o General General Internal Trust and Fixed Assets Long -Term Enterprise Service Agency (Unaudited) Debt 1995 1994 $ 10,525 $ 14,452 $ 4,422 $ _ $ 240,565 $ 443,535 $ 596,385 287,408 138,743 11,728 1,094 89 - 113,714 143,773 142,600 - - _ _ - 20 20,000 2,679 72,106 6 32,222 75 361,988 362,063 667,238 2,951 - - - - 6,706,591 4,174,390 0 - _ _ _ - 4,443 4,443 12,387 12,387 25,523 - - - 26,057,000 26,057,000 23,900,000 - - 93,130 = - 93,130 52,547 27,958 15,546 459,629 26,423,666 34,202,436 29,754,091 - - - 7,861,223 - 7,861,223 5,926,180 20,629,717 50,000 - - - 20,679,717 16,322,592 a 1,485,711 13,481 - - - 1,499,192 1,167,118 - - - - - 8,169,655 8,535,835 Q - - - - - - 2,293,305 39,934 - - 39,934 20,628 a = = 166,702 _ _ 1 66,702 230,686 1,530,047 760,444 - - - - 8,740,772 5,456,612 _ _ _ _ - 619 46,328 166,853 (2,017,969) (44,089) 22,115,428 63,481 206,636 7,861,223 - 47,456,080 40,715,639 $ 22,143,386 $ 79,027 $ 666,265 $ 7,861,223 _$_26 ,423,666 $ 81,658,516 _$_ 69,730 -7- ~ CITY OF ANDOVER Ii. Combined Statement of Revenue, Expenditures, and Changes in Fund Balance C All Governmental Fund Types and Expendable Trust Funds Year Ended December 31, 1995 (with Comparative Totals for Year Ended December 31, 1994) Governmental Fund Types C Special Debt Capital General Revenue Service Project C Revenue Taxes ad valorem $ 1,810,213 $ 12,579 $ 337,490 $ Tax increments 770,354 Special assessments 12 3,855,686 396,419 D Licenses and pennits 410,212 Intergovernmental 747,627 10,521 190,595 75,570 Charges for services 549,606 C Fines and forfeits 46,152 Other -r Interest earned on investmtmts 15,716 2,213 258,557 283,034 "" Park dedication fees 143,382 C "Refunds and reimbursements 13,228 8 "Miscellaneous 3,042 46,246 54 371,819 Total revenue 3,595,796 71,571 5,412,736 1,270,232 Expenditures C Current General government 932,460 Public safety 1,060,210 Public works 637,551 93,319 ~ ' , Sanitation 34,795 Parks and recreation 329,4]6 Recycling 58,260 C Economic development 22 Unallocated 93,546 Miscellaneous C Capital projects 7,826,360 Debt service Principal 7,843,000 Interest and other 1,283,040 C Total expenditures 3,146,260 93,319 9,126,040 7,826,360 Excess (deficiency) of revenue over expenditures 449,536 (21,748) (3,713,304) (6,556,128) Other financing sources (uses) C Bond and certificate proceeds (net) 893,767 8,905,199 Sale of property 10,000 154,925 Operating transfers in 300,988 23,253 400,630 1,122,965 C Operating transfers (out) (39,500) (1,769,706) Tota] other financing sources (uses) 26],488 33,253 1,294,397 8,413,383 Excess (deficiency) of revenue and other C financing sources over expenditures and other financing uses 711,024 11,505 (2,418,907) 1,857,255 Fund balance C Beginning of year 985,876 97,639 10,038,090 5,926,830 Residual equity transfers in 464,633 3,227,922 Residual equity transfers (out) (235,542) (3,457,013) ~ ' , End of year $ 1,696,900 $ 109,144 $ 7,848,274 $ 7,554,994 See notes to financial statements C -8- ~ ;~=-~~-----=--- ~ ~~--- ---- -G~ "' I I I I I -I I I I I I I ] I -I _I ~ I , I ~ I ~ I Fiduciary Fund Type Expendab]e Trust $ 7,344 32,40 ] 39,745 2],423 21,423 ]8,322 8,000 (7],000) (63,000) (44,678) 251,3]4 $ 206,636 Totals (Memorandum Only) 1995 $ 2,]60,282 v $ 770,354.1 _4,252,I17'V' u4ill~If v' 1,024,3131/ 549,60617 ./46,152V 566,86.y' 143,382v n ?,6~ 453,5621 10,390,080 .==--------- 932,460 1,060,210 730,870 34,795 329,4]6 58,260 22 93,546 21,423 7,8i6,360 (9,823,322) 1994 1,823,119 707,388 4,336,861 410,733 1,723,493 227,960 40,496 868,126 ] 40,074 43,104 134,401 ]0,455,755 804,726 970,174 677,692 51,522 294,158 49,574 21,9]6 86,278 5,649 5,249,436 6,468,000 1,391,180 16,070,305 (5,614,550) S<<-tiM I <l>1\O-l\j t()",I~ 9,798,966 5,843,601 79 132-7------ ,731,827 (4,717,397) 5,937,858 116,199 17,299,749 3,692,555 (3,692,555) $ 17,415,948 323,308 ]6,976,441 ],274,326 (1,274,326) $ 17,299,749 7 -9- CITY OF ANDOVER Combined Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual General and Debt Service Funds Year Ended December 31, 1995 General Fund Over (Under) Budget Actual Budget Revenue Taxes ad valorem $ 1,829,352 $ 1,810,213 $ (19,139) Tax increments Special assessments - - - Licenses and permits 369,655 410,212 40,557 Intergovernmental 759,320 747,627 (11,693) Charges for services 360,623 549,606 188,983 i Fines and forfeits 39,000 46,152 7,152 Other i Interest earned on investments 33,000 15,716 (17,284) Refunds and reimbursements 14,760 13,228 (1,532) Miscellaneous 4,300 3,042 (1,258) Total revenue 3,410,010 3,595,796 185,786 Expenditures Current General government 951,735 932,460 (19,275) Public safety 1,073,928 1,060,210 (13,718) WWW Public works 812,317 637,551 (174,766) Sanitation 60,155 34,795 (25,360) Parks and recreation 341,645 329,416 (12,229) Recycling 48,865 58,260 9,395 Economic development - 22 22 Unallocated 184,365 93,546 (90,819) Debt service Principal - - - Interest and other - - - Total expenditures 3,473,010 3,146,260 (326,750) Excess (deficiency) ofrevenue over expenditures (63,000) 449,536 512,536 Other financing sources (uses) Bond and certificate proceeds (net) - - - Operating transfers in 71,000 300,988 229,988 Operating transfers (out) (8,000) (39,500) (31,500) Total other financing sources (uses) 63,000 261,488 198,488 i Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses $ - 711,024 $ 711,024 i Fund balance Beginning of year 985,876 Residual equity transfers in - Residual equity transfers (out) - End of year $ 1,696,900 See notes to financial statements -10- i I I I Debt Service Funds I Over (Onder) Budget Actual Budget I $ 335,531 $ 337,490 $ 1,959 220,000 770,354 550,354 1,456,580 3,855,686 2,399,106 I 199,821 190,595 (9,226) I 287,500 258,557 (28,943) I 54 54 2,499,432 5,412,736 2,913,304 I I I I 7,143,000 7,843,000 700,000 1,300,437 1,283,040 (17,397) - 8,443,437 9,126,040 682,603 - - I (5,944,005) (3,713,304) 2,230,70 I I 893,767 893,767 ~ 37,630 400,630 363,000 - 37,630 1,294,397 1,256,767 j I j $ (5,906,375) (2,418,907) $ 3,487,468 , I I j 10,038,090 464,633 ~ I (235,542) , , j $ 7,848,274 ., I ] -11- - I J , CITY OF ANDOVER ~ Combined St'itement of Revenue, Expenses, and Changes in Retained Earnings ~ Proprietary Fund Types Year Ended December 31,1995 (with Comparative Totals for Year Ended December 31, 1994) ~ Totals Internal (Memorandum Only) Enterprise Service 1995 1994 ~ Operating revenue ~ User charges $ 1,149,898 $ 187,800 $ 1,337,698 $ 1,128,789 Meters 44,723 44,723 48,238 C Permit fees 13,600 13,600 18,200 Penalties 18,304 18,304 19,279 Other 21,736 21,736 3,644 m Total operating revenue 1,248,261 187,800 1,436,061 1,218,150 Operating expenses Personal services 247,151 57,979 305,130 248,814 m Supplies 31,498 104,571 136,069 117,868 ' , Meters, etc. 599 Other services and charges 122,964 38,~35 161,199 137,226 C Disposal charges 423,121 423,121 362,880 Capital outlay 38,657 38,657 32,193 Total operating expenses 824,734 239,442 1,064,176 899,580 ~ Operating income (loss) before depreciation 423,527 (51,642) 371,885 318,570 I Depreciation 476,525 476,525 441,032 ~ Operating loss (52,998) (51,642) (104,640) (122,462) Other income C Interest income (charged) 25,365 (482) 24,883 24,482 Loss before operating transfers (27,633) (52,124) (79,757) (97,980) ~ Operating transfers in 30,500 31,500 62,000 43,200 C Operating transfers (out) (37,630) (37,630) (57,630) Total operating transfen; (7,130) 31,500 24,370 (14,430) Net loss (34,763) (20,624) (55,387) (112,410) C Less capital contributed from utility customers (45,319) (45,319) (44,638) Add credit for depreciation on contributed assets 432,780 432,780 411,851 W Income (loss) closed to retained earnings 352,698 (20,624) 332,074 254,803 Retained earnings ~ Beginning of year 1,133,013 34,105 1,167,118 912,315 End of year $ 1,485,711 $ 13,481 $ 1,499,192 $ 1,167,118 ml See notes to financial statements C -12- m -~- - -":-1- ~----~ - - --- - - --- .---'-;=C- , ----- I CITY OF ANDOVER I Combined Statement of Cash Flows Proprietary Fund Types Year Ended December 31, 1995 (with Comparative Totals for Year Ended December 31,1994) I Totals Internal (Memorandum Only) I Enterprise Service 1995 1994 Cash flows from operating activities Operating loss $ (52,998) $ (51,642) $ (104,640) $ (122,462) I Adjustments to reconcile operating loss to net cash provided (used) by operating activities Depreciation 476,525 476,525 441,032 Change in assets and liabilities I Receivables Accounts (93,170) 181 (92,989) (47,337) Delinquent special assessments (1,569) (1,569) (1,244) I Deferred special assessments 20,244 Due from other governmental units 208 208 (13) Prepaid items (11,822) (11 ,822) (5,463) I Inventory (3,586) (5,858) (9,444) (1,542) Accounts payable (1,856) 4,557 2,701 3,185 Accrued items (5,372) 342 (5,030) 4,142 Due to other governmental units 153 153 (163) I Deposits payable 13 Deferred revenue 1,569 1,569 1,244 Net cash provided (used) I by operating activities 308,082 (52,420) 255,662 291,636 Cash flows from capital and related financing activities I Acquisition of capital assets (142,167) (142,167) (102,490) Cash flows from investing activities Interest received (paid) 16,574 (116) 16,458 26,504 I Cash flows from noncapital fmancing activities Operating transfers in 30,500 31 ,500 43,200 I Operating transfers (out) (37,630) (57,630) Net cash provided (used) by noncapital financing activities (7,130) 31,500 24,370 (14,430) I Net increase (decrease) in cash and temporary investments 175,359 (21,036) 154,323 201,220 -I Cash and temporary investments Beginning of year 658,847 71,185 730,032 528,812 I End of year $ 834,206 $ 50,149 $ 884,355 $ 730,032 Noncash capital and related financing activities I Property and equipment contributed from Capital Project Funds $ 4,744,586 $ $ 4,744,586 $ I See notes to fmancial statements -13- I ~ ~ ~ ~ ~ c c ~ ti./ ~ ~." ~ ~ ~ ~ W.l ~ ~ ~ ~ ~I ~ ~ I ~ ~~_.-------=---=-'.I =- - ~, I -- -I I -I -I -I I I I I I I -I I I -I -I -I ~ I J I CITY OF ANDOVER Notes to Financial Statements December 31, 1995 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Organization The City operates under "Optional Plan A" form of government as defmed in 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 detennine 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 fmancial 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 fmancial data has been blended with that of the 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- , L CITY OF ANDOVER ~ ~ ~ ~ Notes to Financial Statements (continued) December 31, 1995 NOTE 1 - SUMMARY 0][<' SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Debt Service F'unds - 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 fmancial 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). c ~ ~ ~ ~ ~ C ~ r.,. ~ ~ 2. Proprietary Fund Types a. Enterprise Funds - The Enterprise Funds are used to account for operations that are fmanced and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. b. Internal Service Fund - The Internal Service Fund is used to account for the City's Central Equipment Maintenance operations. Internal Service Fund operations are operated in a manner similar to Enterprise Funds, except that the services are provided primarily to other departments within the City. 3. Fiduciary Fund Type a. Trust and Agency Funds - The Trust and Agency Funds are used to account for assets held by the City in the capacity of trustee or agent. 4. Account Groups a. General Fixed Assets (Unaudited) - This group of accounts contains the fIxed assets of the governmental fund types. b. General Long-Tenn Debt - This group of accounts contains the long-term obligations of the City other than those liabilities included in the Proprietary Funds. D. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus and its basis of accounting. ~ ~.' , , i -15- ~ [ ~ -~~~------:::--:=-:~ ~~I I I I I I I I I I -I I I I I -I '1 11 11 11 CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 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- , I CITY OF ANDOVER ~ ill Notes to Financial Statements (continued) December 31, 1995 [ [ c NOTE 1 - SUMMARY 0]8' SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Recording of Explmditures - 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 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. 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, a trust account has been established for deferred compensation payable to employees. Investments are generally stated at cost or amortized cost, except for assets of the Deferred Compensation Plan Agency Funds, which are reported at market value. The carrying value of the City's equity in the Piper Jaffray "Institutional Government Income Portfolio Fund" was reduced by approximately $650,000 during the fIscal year ended December 31, 1995, due to a significant drop in the market value of the shares of the investment pool. See also Note 18. F. Budget The amounts shown on the fmancial 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 and Debt Service Funds. Neither Minnesota Statutes nor City Code establish a legal level of control for the budgets presented. The 1995 budget was amended at the departmental level. The "Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual" reflects all budgetary to actual comparisons for governmental funds budgeted by the City. Encumbrance accounting is not used and expenditure appropriations lapse at year-end. Budgeted appropriations (inc:luding operating transfers out) shown are as originally adopted except for the following budget amendments: Original Budget Amendments Amended Budget . ~ General Fund $ 3,301,250 $ 179,760 $ 3,481,010 -17- ~ ~ . -.-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, 1995 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 (HAC A) which is included in intergovernmental revenue in the fmancial statements. The county spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year collectible. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable. Revenue from property taxes which is not collected within 60 days of year-end is deferred since it is not available to meet obligations of the current year. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes are due in full on May 15. 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 or upon completion of the project costs and passage of a Council resolution with the actual certification taking place subsequent to year-end. 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. General Fund inventory consists of signs and miscellaneous other items. Proprietary Funds inventory consists of water meters, miscellaneous parts, and other items. 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- Furniture and equipment Machinery Collection and distribution systems 3-15 years 20 years 50 years c ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ c ru m m w m c c CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 1 - SUMMARY O]~ SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Proprietary Fund Type - Fixed assets of the Proprietary Funds are stated at cost, estimated cost, or, in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight-line method over the estimated useful lives of the assets, as follows: Depreciation on ca.ntributed 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 expec:ted to be paid from expendable available fmancial resources. The remianing liability 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 tlle prior year has been presented in the accompanying fmancial statements in order to provide an understanding of changes in the City's fmancial position and operations. However, comparative data has not been presented in all statements because its inclusion would make certain statements unduly complex a.nd difficult to understand. Certain prior year amounts have been reclassified to conform to the current ye:ar presentation. -19- '- --~--l I I I I I I I I I I I I -I I _I I I 11 I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 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. O. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMC Trust), a public entity risk pool for its general property and casualty, workers' compensation, and other miscellaneous insurance coverages. The LMC Trust operates as a common risk management and insurance program for approximately 780 cities. The City pays an annual premium to the LMC Trust for insurance coverage. The LMC Trust agreement provides that the Trust will be self- sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits. The major reinsurance points are generally $200,000 per occurrence for property loss or damage and $450,000 per occurrence for workers' compensation. The City also carries commercial insurance for certain other risks of loss, including employee health insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 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 fIrst mortgage notes and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a fmancial institution other than that furnishing the collateral. -20- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) At year-end, the carrying amount of the City's deposits was $880,762, while the balance on the bank records was $1,269,328. .AJl 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. The City's investments are Gategorized on the following page 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. -21- -~---'-- ,.'----.- 1- -- - - ~ ~--J [ o c c ~ c ~ ~ ~ ~n~ ~ m W, ml W m m m I I I I I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) Deposits and investment balances at December 31, 1995 are as follows: Custodial Credit Risk Category 2 3 Carrying Value Market Value State and local goverrunent securities $ 611,191 $ U.S. government securities 6,059,722 Commercial paper 5,276,516 $ 11,947,429 $ - $ - $ 449,906 1,471,769 - $ 1,921,675 611,191 $ 6,509,628 6,748,285 624,518 6,816,516 6,812,763 14,253,797 13,869,104 I I Unclassified - investment pools U. S. goverrunent security mutual funds Money market funds Held by trustees 3,735,556 51,128 93,130 3,717,656 51,128 93,130 Total investments 17,748,918 $ 18,115,711 Deposits Cash on hand 880,762 650 -I 1 I I -I Total deposits, cash on hand, and investments $ 18,630,330 Deposits, cash on hand, and investments are reported on the City's combined balance sheet as follows: Cash and temporary investments Cash and investments held by trustee $ 18,537,200 93,130 Total deposits and investments $ 18,630,330 NOTE 3 - DUE FROM DEVELOPER I ~ I 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 fmancing 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, 1995, the remaining principal due of $163,070 is offset by deferred revenue as it is not available to fmance current activities. cl - I -I -22- Water Sewer Total Furniture and equipment $ 517,065 $ 108,005 $ 625,070 Machinery 898,814 898,814 Collection and distribution systems 9,729,204 13,694,906 23,424,110 11,145,083 13,802,911 24,947,994 Less accumulated depreciation 1,605,978 2,491,287 4,097,265 $ 9,539,105 $ 11,311,624 $ 20,850,729 c ~ t ~ ~ C ~ m ~ ~ ~ W c m m m m ,m c c CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 4 - DUE FROM OTHER GOVERNMENTAL UNITS The amounts due from other governmental units at December 31, 1995 are comprised of the following: Due from State of Minnesota State share of street improvement projects Department of Natural Resources Total due from State of Minnesota $ 19,628 60,000 79,628 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 29,121 17,083 Total from all sources 22,251 25,943 7,517 101,915 $ 181,543 NOTE 5 - PROPERTY AND EQUIPMENT A. Proprietary Fund Type Property and Equipment A summary of proprietary fund type property, equipment, and accumulated depreciation follows: -23- _~~_._,c.1 -~ I I I I -I I -I I -I I I I -I -I ~I 'I ] I j I , CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 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 $ 1,090,304 $ 1,450,013 $ 66,901 $ 2,473,416 Buildings and improvements 1,934,428 76,447 2,010,875 Furniture and equipment 434,114 154,753 588,867 Machinery and automotive equipment 2,467,334 320,731 2,788,065 $ 5,926,180 $ 2,001,944 $ 66,901 $ 7,861,223 NOTE 6 - LONG-TERM DEBT A. Summary of Changes in Long-Term Debt The following is a summary of changes in long-term debt of the City for the year ended December 31, 1995: Balance Balance Beginning New Debt Debt End of of Year Issues Retired Year General long-term debt General Obligation Bonds $ 23,590,000 $ 9,485.000 $ 7,725,000 $ 25,350,000 Certificates of Indebtedness 310,000 515,000 \118,000 707,000 Assessments on City property 147,080 93,485 240,565 Contracts for deed payable 25,523 13,136 12,387 Compensated absences payable - net 102,142 11,572 113,714 Total general long-term debt $ 24,174,745 $ 10,105,057 $ 7,856,136 $ 26,423,666 -24- CITY OF ANDOVER ~ Notes to Financial Statements (continued) ~ December 31, 1995 C ' ' NOTE 6 - LONG-TERM DEBT (CONTINUED) B. Components of Long-Tenn Debt ~ Final Balance m Original Interest Issue Maturity at Issue Rate Date Date Year-End Generallong-tenn debt General Obli ation Bonds ~ pecia] Assessment Bonds J hoprovement Bonds of Series 1977 A $ 1,215,000 5.00% 2-]-1977 1-1-2006 $ 635,000 hoprovement Bonds of 1978 $ 270,000 5.25-6.00% 11-1-1978 2-1-1999 80,000 Improvement Bonds of Series 1985A $ 300,000 8.25-9.60% 2-1-]985 2-1-2000 125,000 W Improvement Bonds of Series 1986A $ 1,795,000 5.00-7.90% 7-1-1986 8-1-2001 820,000 Improvement Bonds of Series 1986B $ 2,600,000 4.75-6.30% 10-1-1986 10-1-1996 340,000 . Refunding Bonds of Series 1986C $ 2,485,000 6.00-7.40% 8-1-1986 8-1-2002 1,435,000 hoprovement Bonds of Series 1989A $ 3,200,000 6.10-6.80% 7-1-1989 8-1-2001 1,800,000 ~ Improvement Bonds of Series 1993A $ 3,650,000 4.55% 8-1-1993 8-1-2003 2,920,000 Improvement Bonds of Series 1994C $ 1,140,000 5.05-5.75% 10-1-1994 2-1-2006 1,140,000 Temporary Improvement . Bonds of Series 1994D $ 3.705,000 4.60% 10-1-1994 10-1-1997 3,705,000 hoprovement Bonds of 1995A $ 2,605,000 4.80-5.30% 6-1-1995 2-1-2006 2,605,000 ~ ~ax ;;;:~~~gB~:~s if Series 1995B $ +- 825,000 4.40-4.85% 6-1-1995 8-1-2000 + R?4\ ()fI(t . SI-/-'3o, 000 - "15.'SlJ-d. ll1>,4'?;OPOO. . . ax Increment ~I"V' '('.~'-\'(. - Bonds of Series 1993B $ 520.000 4.65% 8-1-1993 8-1-2003 420,000 ~ G. O. Tax Increment Refunding Bonds of Series 1994B $ 885.000 5.55-7.87% 5-1-1994 5-1-2004 795,000 G.O. Tax Increment 'l.~"'(_d,P!.L,,-~Ij\e.r'f Bonds of Series 1995D $ 6,055, 4.50-5.60% 10-1-1995 2-1-2013 -I- 6,055 000 m /./"'G.O. State-Aid Street Bonds 127000"0 1988 $ 500,000 5.60-6.80% 8-1-1988 8-1-1998 -~- V G.O. Fire Station Bonds $ 2,500,000 5.00-6.50% 7-1-1991 1.500.000 of Series 199IA 7-1-2001 W Total General Obligation Bonds 25,350,000 Certificates of Indebtedness 1992 Certificates of Indebt"dness $ 180.000 4.25-5.75% 8-1-1992 8-1-1997 72,000 1994A Certificates of Indebtedness $ 150,000 3.55-4.25% 3-1-1994 3-1-1999 120,000 m 1995C Certificates of Indebtedness $ 515,000 4.40-4.85% 6-1-1995 2-1-2000 515,000 Total Certificates of Indebtedness 707,000 Assessments on City property $ 338,174 6.25-10.70% N/A 2001 240,565 m Contracts for deed payable Park property $ 47,430 9.00% 8-5-1991 8-1-1996 9,486 Street right of ways $ 13,000 8.50% 6-1-1993 6-1-1996 2,901 m Total contracts for deed payable 12,387 Compensated absences payable N/A N/A N/A N/A 113,714 Total generallo:ng-tenn debt $ 26,423,666 C C C -25- ~ I ~I -I ~I I I I I I I - I -I - I cl I ~I - I I - I I I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 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 1996 $ 3,464,552 141,668 13,080 3,619,300 1997 7,096,389 142,478 7,238,867 1998 3,121,046 149,790 3,270,836 1999 2,962,228 192,687 3,154,915 2000 2,814,328 179,244 2,993,572 Thereafter 13,768,101 13,768,101 33,226,644 805,867 13,080 34,045,591 Less amount representing interest 7,876,644 98,867 693 7,976,204 $ 25,350,000 $ 707,000 $ 12,387 $ 26,069,387 D. Descriptions and Restrictions of Long-Term Debt General Obligation Bonds classified by major source of repayment are as follows: o Special Assessment Revenue - These bonds were issued to fmance various improvements and will be repaid primarily from special assessments levied on the properties benefitting from the improvements. Some issues, however, are partly fmanced by ad valorem levies. In June 1995, the City issued $825,000 of General Obligation Improvement Refunding Bonds, Series 1995B. The proceeds were used to advance refund the 1996 through 2000 maturities of the City's $2,350,000 General Obligation Improvement Bonds of 1985, which were called on August 1, 1995. As a result of this advance refunding, the City will reduce total debt service payments by approximately $81,000 over the next five years and will recognize an economic gain (the difference between the present value of the debt service payments on the refunded and refunding bonds) of approximately $71,000. 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. -26- CITY OF ANDOVER c w m c m c m m ~ m c ~ m c m c Q C C Notes to Financial Statements (continued) December 31, 1995 NOTE 6 - LONG-TERM DEBT (CONTINUED) o State-Aid - These bonds were issued to fmance 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 Debt Service Fund. o Ad Valorem Levies - 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. Other types of long-term dt:bt 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 Cily 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 dl~ed 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 sick leave 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 Fulure Debt Requirements o Amounts A vailabIe in Debt Service Funds - The fund balance available in the Debt Service Funds for repayment of long-term debt at December 31, 1995 is $7,848,274. 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 tr:msfers, and interest earnings. Deferred tax levies scheduled to be placed on the tax rolls, as needed, total $8,195,071 at December 31, 1995. -27- 1-- ---+==-0 -I I I I I I I I I I I I I I I I - I -I ~ I I -, CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 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 1995 were as follows: Internal Service Enterprise Funds Fund Water Sewer Central Equipment Fund Fund Total Maintenance Fund Total Balance, beginning of year $ 7,482,406 $ 8,790,186 $ 16,272,592 $ 50,000 $ 16,322,592 Capital contributed from Capital Project Funds 2,068,361 2,676,225 4,744,586 4,744,586 Capital contributed from utility customers 45,319 45,319 45,319 Less current year's depreciation on contributed assets (212,406) (220,374) (432,780) (432,780) Balance, end of year $ 9,383,680 $ 11 ,246,037 $ 20,629,717 $ 50,000 $ 20,679,717 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, 1995 is as follows: Water Fund Sewer Fund Total Operating revenue $ 516,891 $ 731,370 $ 1,248,261 Operating expenses $ 263,675 $ 561,059 $ 824,734 Depreciation expense $ 240,097 $ 236,428 $ 476,525 Operating income (loss) $ 13,119 $ (66,117) $ (52,998) Net income (loss) $ 31,002 $ (65,765) $ (34,763) Operating transfers in $ $ 30,500 $ 30,500 Operating transfers (out) $ $ (37,630) $ (37,630) Current capital contributed $ 2,113,680 $ 2,676,225 $ 4,789,905 Property and equipment additions $ 2,193,602 $ 2,693,151 $ 4,886,753 Net working capital $ 719,071 $ 545,628 $ 1,264,699 Total assets $ 10,270,858 $ 11,872,528 $ 22,143,386 Total equity $ 10,258,176 $ 11,857,252 $ 22,115,428 -28- CITY OF ANDOVER .. ~ Notes to Financial Statements (continued) December 31, 1995 c NOTE 9 - INTERFUND RECEIVABLES AND PAYABLES ~ Individual fund interfund re,ceivables and payables at year-end were as follows: c Interfund Interfund Fund Receivable Payable General Fund $ 20,000 $ Kelsey Round Lake Park Capital Project Fund 20,000 $ 20,000 $ 20,000 NOTE 10 - TRANSFERS c c w The following transfers were made during the year ended December 31, 1995: c A. Operating Transfers Transferred To General Fund General Fund Drainage and Mapping Special Revenue Fund Certificates of Indebtedness Debt Service Fund Improvement Bonds Series 1986B Account Debt Service Fund Improvement Bonds Series 1986B Account Debt Service Fund Unfinanced Improvement Account Capital Project Fund Water Trunk Account Capital Project Fund Storm Sewer Trunk Account Capital Project Fund Sewer Trunk Account Capital Project Fund Compensated Absences Expendable Trust Fund Transferred From Permanent Improvement Revolving Capital Project Fund Administrative Trust Expendable Trust Fund Permanent Improvement Revolving Capital Project Fund ~_wer Enterprise Fund Water Trunk Account Capital Project Fund Sewer Trunk Account Capital Project Fund TIP Project 1-1 Account Capital Project Fund Permanent Improvement Revolving Capital Project Fund Permanent Improvement Revolving Capital Project Fund Permanent Improvement Revolving Capital Project Fund General Fund -29- m Amount Description $ 229,988 To finance operating expenses "'71 ,000 from prior year's bond proceeds. To fund administrative costs. 23,253 To fmance operating expenses - .,17,630 from prior year's bond proceeds. To transfer funds per adopted budget. v225,822 To reimburse debt service for principal payments made. v137,178 To reimburse debt service for principal payments made. V9,868 To provide funding for previously unfinanced improvement projects. 688,300 To finance operating expenses from prior year's bond proceeds. 42,079 To finance operating expenses from prior year's bond proceeds. 266,597 To finance operating expenses from prior year's bond proceeds. --(000 To transfer funds per adopted budget. c ~ m w c c m PM -- (continued) m C' c:~----- I CITY OF ANDOVER I Notes to Financial Statements (continued) December 31, 1995 I I NOTE 10 - TRANSFERS (CONTINUED) Transferred To Transferred From Amount Description I Central Equipment Maintenance General Fund 31,500 To transfer funds per adopted Internal Service Fund budget. Improvement Bonds Series Unfinanced Improvement Account 1A(550 To finance operating expenses 1995A Construction Account Capital Project Fund from prior year's bond proceeds. I Capital Project Fund v1l1,571 Unfinanced Improvement Account Improvement Bonds Series To provide funding for previously Capital Project Fund 1995A Construction Account unfinanced improvement projects. I Capital Project Fund Sewer Enterprise Fund Sewer Trunk Account ......30,500 To transfer funds per adopted Capital Project Fund budget. I $ 1,917,836 B. Residual Equity Transfers I Transferred To Transferred From Amount Description State-Aid Bonds of 1988 Account State-Aid Bonds of 1984 Account $ 488 To close State-Aid Bonds of 1984 I Debt Service Fund Debt Service Fund Account Debt Service Fund. TIP Project 1-1 1993B Account TIP Commercial Revitalization 612 To close TIP Project 1-1 Debt Service Fund Account Debt Service Fund Account Debt Service Fund TIP Project 1-2 1994B Account TIP Commercial Revitalization 200,404 To close TIP Project 1-2 I Debt Service Fund Account Debt Service Fund Account Debt Service Fund Improvement Bonds of 1992 Pennanent Improvement 263,129 To close Improvement Bonds of Account Special Assessment Revolving Capital Project Fund 1992 Account Special Assessment Bonds Debt Service Fund Bonds Debt Service Fund. I Pennanent Improvement Improvement Bonds of 1979 34,038 To close Improvement Bonds of Revolving Capital Project Fund Account Special Assessment 1979 Account Special Assessment Bonds Debt Service Fund Bonds Debt Service Fund. 1995 Equipment Capital Project 1992 Equipment Capital Project 6.109 To close 1992 Equipment Capital I Fund Fund Project Fund. 1995 Equipment Capital Project 1994 Equipment Capital Project 38,323 To close 1994 Equipment Capital Fund Fund Project Fund. TIF Commercial Revitalization TIP Project 1-2 Account Tax 222,629 To close TIP Project 1-2 Account I Account Tax Increment Capital Increment Capital Project Fund Tax Increment Capital Project Project Fund Fund. TIP Project 1-1 Account Tax TIP Project 1-2 Account Tax 578,156 To close TIP Project 1-1 Account Increment Capital Project Fund Increment Capital Project Fund Tax Increment Capital Project I Fund. 1995 Park Capital Project Fund Pennanent Improvement 4,753 To open 1995 Park Capital Revolving Capital Project Fund Project Fund. Pennanent Improvement Improvement Bonds Series 1992 945,105 To close Improvement Bonds - I Revolving Capital Project Fund Construction Account Special Series 1992 Construction Assessment Capital Project Fund Account Special Assessment Capital Project Fund. Permanent Improvement Improvement Bonds Series 1993A 1,398,809 To close Improvement Bonds - I Revolving Capital Project Fund Construction Account Special Series 1993A Construction Assessment Capital Project Fund Account Special Assessment Capital Project Fund. I $ 3,692,555 I -30- CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 11 - INDIVIDUAL FUND DISCLOSURES The following funds had a deficit as of December 31, 1995: Fund Deficit Special Assessment Capital Project Fund Kelsey Round Lake Park Capital Project Fund $ 273,382 $ 24,220 The deficit in these funds will be fmanced 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 €lach 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 fmancial resources to pay principal and interest on the City's General Obligation Bonds and Certificates of Indebtedness. o Designated for Employee Benefits - The balances in the City's Flexible Benefits and Compensated Absences Expendable Trust Funds are designated for future employee benefit payments. o Designated for AssEssment Administration - The balance in the Administrative Trust Expendable Trust Fund is designated for special assessment project administration. o Designated for Working Capital- This amount represents funds set aside by the City to provide positive cash flow for the next fiscal year. o Designated for Cap,ital 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. o Designated for FtJlture Expenditures - These amounts represent fund balances which are presently committed for future expenditures. For 1995, expenditures at the fund level exceeded appropriations as follows: Amount Over Budget Debt Service Funds State-Aid Bonds Special Assessment Bonds $ 7 $ 701,100 -31- ------.::---~ >- ------ - -------=- -----=-=-= 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 Notes to Financial Statements (continued) December 31, 1995 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City of Andover are covered by defined benefit plans administered by the Public Employees' Retirement Association of Minnesota (PERA). PERA administers the Public Employees' Retirement Fund (PERF) and the Public Employees' Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by statute are covered by the PEPFF. The payroll for employees covered by PERF and PEPFF for the year ended December 31, 1995 was $1,147,645 and $31,172, respectively; the City's total payroll was $1,423,608. 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 defmed retirement benefits are based on a member's highest 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 Plan 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 Plan 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 Plan member, the annuity accrual rate is 1.0% of the average salary for each of the first 10 years and 1.5% for each remaining year. Using Method 2, the annuity accrual rate is 2.5 % of the average salary for Basic Plan members and 1.5 % for Coordinated Plan members. For PEPFF members, the annuity accrual rate is 2.65 % for each year of service. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leav~ public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. -32- PERF (lBasic and Coordinated Plans) PEPFF 4.31 % 7.60% 4.60% 11.40 % 9.76% 19.00% c ~ ~ ~ ~ ~ w. ~ ~ ~ ~ ~ C ~ ~ W W W t:: C CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) 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 and the PEPFF is July 1, 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. The required contribution rate consists of (a) normal costs based on entry age normal cost methods, (b) a supplemental contribution for amortizing any unfunded actuarial accrued liability by the date required for full funding, and (c) an allowance for administrative expenses. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutory Rates Employees Employer Required Rates * * The recommended rates scheduled above represent the required rates for fIscal year 1995 contributions as reported in the July I, 1994 actuarial valuation reports. Total contributions made by the City during fiscal year 1995 were: Percentage of Amounts Covered Payroll Employees Employer Employees Employer PERF $ 48,564 $ 51,435 4.23% 4.48% PEPFF $ 2,369 $ 3,554 7.60% 11.40 % The City's contribution for the year ended December 31, 1995 to the PERF represented 0.04 % of total contributions required of all participating entities. For the PEPFF, contributions for the year ended December 31, 1995 represented 0.01 % of total contributions required of all participating entities. -33- '-- ----==. I I I I I -I I I I - I -I - I -I 01 - I - I I - I - I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) C. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and 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 Employee Retirement Systems and participating employers. The measure is independent of the actuarial funding method used to determine required contributions. PERA does not make separate measurements of assets and pension benefit obligation amounts for individual participating employers. The pension benefit obligations for the PERF and PEPFF as of June 30, 1995 are shown below: PERF PEPFF Total pension benefit obligation $ 5,994,492,000 $ 1,113,225,000 Net assets available for benefits, at cost (market values for PERF = $5,266,688,000; PEPFF = $1,445,345,000) 5,074,357,000 1,356,179,000 Unfunded (assets in excess of) pension benefit obligation $ 920,135,000 $ (242,954,000) The pension benefit obligation was determined as part of an actuarial valuation at July 1, 1995. For the PERF, significant actuarial assumptions used in the calculation of the pension benefit 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 an age related table, which incorporates a 5.0% base inflation assumption; (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. -34- 1 -35- ~ c c ~ c ~ ~ ~ D ~ ~ ~ I ~I ~I ~I ~ I I ~. ! " ~ ~ w CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 12 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) Actuarial assumptions used in the calculation of the PEPFF 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 of 6.5 % per year, compounded annually, attributable to the effects of inflation; (c) post- retirement increases that are accounted for by the 5.0% rate of return assumption following retirement; and (d) mortality rates based on the 1971 Group Annuity Mortality Table projected to 1984 for males and females. 2. Changes in Actumial Assumptions and Methods Since the July 1, 19'94 actuarial valuation, there were no changes in actuarial assumptions of the PERF and the PEPlFF which impacted funding costs. Potential changes in the actuarial assumptions used for the PEPFF may be made in the future. Results of an experience study for the fund during the four-year period ending June 30, 1994, disclosed (a) retireei; are living longer; (b) the expected active member death rate is declining; (c) the trend toward e:arlier retirement continues; and (d) the pattern of salary increases varies substantially by agtiS, with a strong merit and seniority component evident at the younger ages. Based on these resuilts, PERA will soon consider revising the actuarial assumptions for retirement age, mortality, payroll growth, and individual salary increases. These changes, if adopted within fiscal year 1996, will significantly impact the July 1, 1996 actuarial valuation of the PEPFF. 3. Changes in Benefi1t Provisions The 1995 legislative session did not include any benefit improvements which would impact funding costs for the PERF and the PEPFF. D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995. 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, 1995, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. ~ -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, 1995 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 defmed 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 Chiefare 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, 1995 was $159,155. The City's total payroll was $1,423,608. For financial reporting purposes, the Association's financial statements are not included in the City of Andover's financial statements because the Association is not a component unit of the City. B. Pension Benefits Minnesota State Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A fire fighter who completes at least 20 years as an active member of the municipal fire department to which the Association is associated, and has been a member of the Relief Association for at least 10 years prior to retirement after age 50, is entitled to a service pension upon retirement. 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. -36- 1 , - Chapter Year Established Final year of District 472 1986 2012 ~ C C ~ ~ w m c ~ m c ~ c ~ w ~ c m m CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 13 - DEFINED CONTRIBUTION PLAN - FIRE FIGHTERS' RELIEF ASSOCIATION (CONTINUED) Upon the death of any member of the Association who is in good standing at the time of death, the Association shall pay the member's spouse, children, or estate the balance of the member's account at the date of payment. The City of Andover has the power to levy property taxes at the direction and for the benefit of the Association, and passes through state aids allocated to the plan, in accordance with enabling state statutes. C. Contributions Required and Contributions Made The City's contributions under the plan, determined by the Association's Board of Trustees and ratified by the City Council in accordance with enabling state statutes, is $750 per member per year. In 1995, the City contributed $72,390 to the Association, consisting of $40,140 state aid and $32,250 fulfIlling the City's $750 per member contribution obligation for the year ended December 31, 1995. The City's contribution represents 20.26% of covered payroll. NOTE 14 - TAX INCREMENT FINANCING DISTRICT The City is the administering authority for the following tax increment financing district: Tax Increment District - Development District No.1 Type of District Redevelopment Bonds Outstanding - End of Year $ 86,765 $ 757,163 $ 670,398 $ 8,730,000 1,460,000 $ 7,270,000 Original Tax Capacity Current Tax Capacity (For Taxes Collectible in 1995) Captured Tax Capacity Retained by Authority Total Tax Increment Bonds Issued Amounts Redeemed -37- .~-::--~:-----r- - --- ~. --,- o:::>=c':r- -, -- I -I - I I - I I 1 -I 1 I -I - 1 1 ~ I -I -I -I 1 -I CITY OF ANDOVER Notes to Financial Statements (continued) December 31, 1995 NOTE 15 - 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 and dental care, dependent care, and other qualifying insurance 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 the City for child care, out-of- pocket medical expense reimbursements, and qualifying insurance premiums. The plan is included in the fmancial 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 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. -38- CITY OF ANDOVER ~' i.j c ~ ~ c ~ ~ ~ ~ ~ c c ~ ~ ~; I ~' I m ~ Notes to Financial Statements (continued) December 31, 1995 NOTE 17 - COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31, 1995, 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 $247,872. B. Federal Revenue Amounts received or receivable from federal and state 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 18-SUBSEQUENTEVENT In April 1996, the City was awarded $108,537 in settlement of a lawsuit. The City had brought suit to recover part of its loss in the Piper Jaffray "Institutional Government Income Portfolio Fund." The first payment received in April 1996 represented 25 % of the principal settlement. The remaining payments should be received in December 1996 or January 1997, August 1997, and August 1998, representing 50%, 12.5%, and 12.5%, respectively. -39- w ~ ~J- -I -I -I - I -I I I I I I I ~ I cl "I - I -I :1 I -I COMBINING AND INDIVIDUAL FUND STATEMENTS I t! C, I ~I r . . ~ ~ ". ~ ~ c ~ ~ ~ CI I ~I i ~I ~ iiJI t [ ~ .~:::::-: I ........... -I I I I I I I - I I - I - I - I - I I I - I - I - I - I CITY OF ANDOVER General Fund Comparative Balance Sheet As of December 31,1995 and 1994 Assets Cash and temporary investments Receivables Accounts Accrued interest Delinquent taxes Delinquent special assessments Deferred special assessments Due from other governmental units Due from other funds Prepaid items Inventory Total assets Liabilities and Fund Balance Liabilities Accounts payable Accrued items Due to other governmental units Deferred revenue T otalliabilities Fund balance Reserved for long-term investments Unreserved Designated for working capital Designated for future expenditures Total fund balance Total liabilities and fund balance -40- 1995 1994 $ 1,591,850 $ 909,942 60,056 38,620 21,005 11,844 41,122 47,382 925 1,265 47 46 77,356 94,228 20,000 20,000 45,203 65,115 34,218 1,377 $ 1,891,782 $ 1,189,819 $ 67,550 15,810 69,427 42,095 194,882 $ 103,138 22,417 29,696 48,692 203,943 225,432 ~~-1,530,047 <, 166,853 ( 1,696,900 '- 760,444 985,876 $ 1,891,782 $ 1,189,819 CITY OF ANDOVER W General Fund W Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1995 W (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 1994 ~ Over (Under) ~ Budget Actual Budget Actual Revenue Taxes ad valorem $ 1,829,352 $ 1,810,213 $ (19,139) $ 1,472,108 Licenses and permits 369,655 410,212 40,557 410,733 ~ Intergovernmental revenue ~ Federal CDBG 57,276 2Z&2(L (29,380) 50,422 State m Local government aid 92,246 92,246 87,388 HACA and other tax credits 359,698 359,728 30 352,226 Street maintenance - '3I<>ie- eu:cIv 140,000 -140.000 140,000 Fire department aid 34,100 (40,140 6,040 36,383 ~ Other 76,000 87,617 11,617 78,737 Total intergovem- mental revenUl~ 759,320 747,627 (11,693) 745,156 W Charges for services General government 257,073 4'<;445,277 188,204 119,232 ~ Street lights 100,050 100,034 (16) 102,648 Utility Funds - ~\~,\2e L.",cJ-, "Y( 3,500 4,295 795 6,080 . . ~ Total charges for services 360,623 549,606 188,983 227,960 W Fines and forfeits 39,000 46,152 7,152 40,496 Other revenue C Interest earned on investments 33,000 15,716 (17,284) 43,043 Refunds and reimbursements 14,760 13,228 (1,532) 43,104 Miscellaneous 4,300 3,042 (1,258) 5,176 ~ Total other revenue 52,060 31,986 (20,074) 91,323 Total revenue 3,410,010 3,595,796 185,786 2,987,776 C Expenditures General government C Council Personal services 20,080 20,023 (57) 20,023 Supplies 200 561 361 337 Other services and chaJl'ges 32,755 31,608 (1,147) 28,543 C Total council 53,035 52,192 V (843 ) 48,903 (continued) ~ -41- C ,~ ----- -- -~ I I I I I I I - I I I I I I - I I 01 = I I ~ I CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) Budget Expenditures (continued) General government (continued) Elections Personal services Supplies Other services and charges Total elections 5,915 100 50 6,065 Newsletter Personal services Supplies Other services and charges Total newsletter 2,910 100 6,000 9,010 Administration Personal services Supplies Other services and charges Capital outlay Total administration 126,705 1,500 31,350 159,555 Financial administration Personal services Supplies Other services and charges Total financial administration 137,145 2,800 6,510 146,455 Assessing Other services and charges 63,360 Consulting staff Auditing Legal Total consulting staff 12,000 90,800 102,800 -42- 1995 Actual 5,488 56 337 5,881 1,132 @ 123,881 2,024 32,130 /---- -..... (I~ 131,531 2,952 ~~ 140,705 " 63,360 12,579 97,899 110,478 Over (Under) Budget (427) (44) 287 (184) (1,778) (100) (1,560) (3,438) (2,824) 524 780 (1,520) (5,614) 152 (288) (5,750) 579 7,099 7,678 1994 Actual 14,685 1,005 1,193 16,883 843 30 3,757 4,630 115,173 2,020 29,713 309 147,215 114,675 2,652 8,233 125,560 53,853 11,000 82,249 93,249 (continued) CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 1994 Budget Over (Under) Budget Actual Actual Expenditures (continued) General government (continued) Planning and zoning Personal services Supplies Other services and charges Capital outlay Total planning and zoning Data processing Supplies 85,390 80,803 (4,587) 73,213 2,500 2,156 (344) 2,360 8,115 7,648 (467) 8,061 1,007 96,005 90,607 (5,398) 84,641 25,300 24,357 (943) 24,181 Buildings Administration building Personal services Supplies Other services and charges Capital outlay Total administra.. tion building 28 612 3,600 (719) 4,505 31,850 (4,832) 25,889 10,985 (3) 12,158 46,435 (5,526) 43,164 3,155 3,659 504 2,727 36,075 31,349 (4,726) 31,002 . 39,230 ~ 35,008 (4,222) 33,729 ~ ~ ~ 1,028 5,400 3,187 1\ \ (2,213) 3,584 21,050 ~N 3,159 19,101 17,000 17,7 745 4,000 43,450 45, 1 1,691 27,719 Fire department building Supplies Other services and charges Total fire depart- ment building Public works building Personal services Supplies Other services and charges Capital outlay Total public works building (continued) -43- ~====---c-:::::-~----=-r=------------:-- _ -o--.~ u ~ W ~ m c w ~ m m ~ .. c m w c c ~ c c 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, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) I 1995 1994 Over I (Under) Budget Actual Budget Actual Expenditures (continued) General government (continued) I Buildings (continued) Senior citizen center Supplies 400 119 (281 ) 128 I Other services and charges 9,300 7,454 (1,846) 7,048 Total senior citizen center 9,700 7,573 (2,127) 7,176 I Storage building Supplies 820 279 (541 ) 109 Other services and charges 3,835 1,761 (2,074) 2,293 I Total storage building 4,655 2,040 (2,615) 2,402 Total buildings 143,470 130,671 (12,799) 114,190 -I Engineering Personal services 131,650 138,818 7,168 82,275 Supplies 4,900 4,662 (238) 1,625 I Other services and charges 10,130 7,122 (3,008) 7,521 Total engineering 146,680 150,602 3,922 91,421 -I Total general government 951,735 932,460 (19,275) 804,726 Public safety I Police protection i' Supplies 75 (75) 15 Other services and charges 433,483 428,602 (4,881) 430,759 Total police protection 433,558 428,602 (4,956) 430,774 I Fire protection Personal services 168,170 191,632 23,462 146,747 - I Supplies 11 ,350 9,673 (1,677) 10,087 Other services and charges 91,450 87,879 (3,571 ) 85,187 Relief Association 71,200 ~ 1,190 60,983 - I Capital outlay 29,735 25 (4,306) 21,565 Total fIre protection 371,905 , 3 15,098 324,569 I -I (continued) -44- I CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 Budget Over (Under) Budget Actual Expenditures (continued) Public safety (continued) Protective inspection Personal services Supplies Other services and charges Capital outlay Total protective inspection Total public safety 199,875 200,923 1,048 6,400 6,930 530 17,045 16,922 (123) 25,000 1,136 (23,864) 248,320 225,911 (22,409) 2,760 2,663 (97) 1,000 3,654 2,654 6,360 2,913 (3,447) 10,120 9,230 (890) 200 144 (56) 9,825 9,320 (505) 10,025 9,464 (561) 1,073,928 1,060,210 (13,718) Civil defense Personal services Supplies Other services and charges Total civil defense Animal control Supplies Other services and charges Total animal control Public works Streets and highways Personal services Supplies Other services and charges Capital outlay Total streets and highways 1994 Actual 181,867 7,174 7,904 851 197,796 155 7,335 7,490 245 9,300 9,545 970,174 138,020 125,977 (12,043) 110,80 I 21,725 30,273 8,548 19,671 36,970 34,348 (2,622) 69,692 217,382 (-66,5-51.1) ( 150,832) 109,926 414,097 257,148 (156,949) 310,090 /~ot ~(o'D 1 ~~lo 6s0 lo~) 9r-;y <1J 'b'\~ C\1\\. ~~45 /" / :;~ - --~-~ (continued) ~ .~ C ~ ~ W . iU c c m m c c c c c o c c 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, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) I 1995 1994 Over I (Under) Budget Actual Budget Actual Expenditures (continued) Public works (continued) I Snow and ice removal Personal services 102,245 61,732 (40,513) 57,899 Supplies 66,800 89,153 22,353 60,186 I Other services and charges 42,000 40,729 (1,271) 38,885 Total snow and ice removal 211,045 191,614/ (19,431) 156,970 I Street lighting Supplies Billable 150 (150) 59 I Other services and charges City 18,150 17,593 (557) 16,801 Billable 64,050 75,488 11,438 64,875 I Capital outlay City 1,500 1575 75 1,380 Billable 16,000 ~ (7,678) 11,500 I Total street lighting 99,850 I ,78 3,128 94,615 Street signs/signals I Personal services 32,595 35,024 2,429 26,829 Supplies 21,625 7,485 (14,140) 16,509 Other services and charges 33,105 ~ (7,961) 20,792 I Capital outlay 18,158 Total street signs/signals 87,325 (1,514) 64,130 , Total public works 812,317 637,551 (174,766) 625,805 - I Sanitation Storm sewers I Personal services 13,500 11,493 (2,007) 23,886 Supplies 2,600 1,069 (1,531) 1,995 Other services and charges 2,735 2914 179 3,231 -I Capital outlay 1,500 ie7~ (627) Total storm sewers 20,335 I ,349 (3,986) 29,112 I - I (continued) -46- I CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 Budget Over (Under) Budget Actual Expenditures (continued) Sanitation (continued) Trees and weed control Personal services Supplies Other services and charges Total trees and weed control Total sanitation 15,070 15,326 256 2,600 481 (2,119) 22,150 2,639 (19,511) 39,820 18,446 (21,374) 60,155 34,795 (25,360) 145,015 154,272 9,257 30,300 27,240 (3,060) 57,250 57,950 700 57,680 57,679 (I) 19,900 (19,900) 31,500 32,275 775 341,645 329,416 (12,229) 20,780 18,732 (2,048) 3,900 3,555 (345) 22,100 31,850 9,750 2,085 4,123 2,038 48,865 58,260 9,395 22 22 Parks and recreation Personal services Supplies Other services and charges Community education programs Assessments Capital outlay Total parks and recreation Recycling Personal services Supplies Other services and charges Capital outlay Total recycling ~Economic development () j Personal services \~V; Supplies &7 Other services and charges Total economic development 22 22 -47- 1994 D ~ C ~ C ~ Actual 16,834 470 5,106 22,410 ~ if 51,522 ~ C ~ ~ m m m ~ I m: ~! ~ m 123,323 23,129 44,149 53,182 20,450 29,925 294,158 15,300 2,077 23,195 9,002 49,574 21,004 194 718 21,916 (continued) I I I I I I I I I I I I I I I I I- I I CITY OF ANDOVER General Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual (continued) Year Ended December 31, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 1994 Over (Under) Budget Actual Budget Actual Expenditures (continued) UnaUocated ~~~ CDBG 57,276 (31,425) 50,584 Insurance 36,400 975 34,633 Waste disposal engineer site - III MisceUaneous 90,689 ~ (60,369) 950 Total unallocated 184,365 93,546 (90,819) 86,278 Total expenditures 3,473,010 3,146,260 (326,750) 2,904,153 Excess (deficiency) of revenue over expenditures (63,000) 449,536 512,536 83,623 Other fmancing sources (uses) Operating transfers in Capital Project Funds 229,988 30,000 Expendable Trust Funds 71,000 65,000 Operating transfers (out) Internal Service Funds (31,500) Expendable Trust Funds (8,000) (48,200) Total other financing sources (uses) 63,000 261,488 198,488 46,800 Excess of revenue and other financing sources over expenditures and other financing uses $ 711,024 $ 711,024 130,423 Fund balance Beginning of year 985,876 855,453 End of year $ 1,696,900 $ 985,876 -48- CITY OF ANDOVER ~ Special Revenue Funds C Combining Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) ~ Drainage ~ and EDA Totals Forestry LRRWMO Mapping General 1995 1994 Assets C Cash and temporary investments $ 52,116 $ 4,156 $ 73,737 $ 20,152 $ 150,161 $ 119,045 ~ Receivables Accounts 650 Accrued interest 952 8 1,017 1,977 2,005 Delinquent taxes 368 368 340 ~ Due from other governmental units 120 120 115 Total assets $ 53,068 $ 4,652 $ 74,754 $ 20,152 $ 152,626 $ 122,155 ~ Liabilities and Fund Balance Liabilities ~ Accounts payable $ $ $ 1,508 $ 8 $ 1,516 $ 686 Accrued items 209 1,129 1,338 189 C Deferred revenue . 40,260 368 40,628 23,641 T otalliabi1ities 40,260 577 1,508 1,137 iM82 24,516 Fund balance C Umeserved Undesignated 12,808 4,075 73,246 19,015 109,144 97,639 Total liabilities C and fund balance $ 53,068 $ 4,652 $ 74,754 $ 20,152 $ 152,626 $ 122,155 ~ ~ C ~. .~ C -49- C - ----- I CITY OF ANDOVER I Special Revenue Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1995 I (with Comparative Totals for Year Ended December 31, 1994) I Drainage and EDA Totals Forestry LRRWMO Mapping General 1995 1994 I Revenue Taxes ad valorem $ $ 12,579 $ $ $ 12,579 $ 12,123 Special assessments 12 12 3 I Intergovernmental revenue Federal Cooperative forestry I assistance 7,040 7,040 8,550 State HACA and other tax credits 3,481 3,481 3,475 Other revenue I Interest earned on investments 910 20 953 330 .VJ3. 3,862 Miscellaneous 1,818 (649) 9,677 35,400 46,246 3,009 Total revenue 9,768 15,431 10,642 35,730 71,571 31,022 I Expenditures ~~)51'887 Public works I Other services and charges 7,040 17,913 3,084 65,282 Excess (deficiency) of revenue over expenditures 2,728 (2,482) 7,558 (29,552) (21,748) (20,865) I Other financing sources Sale of property 10,000 10,000 53,041 I Operating transfers in General Fund 2,000 Debt Service Funds 2,584 Capital Project Funds 23,253 23,253 19,973 I Total other financing sources 23,253 10,000 33,253 77,598 Excess (deficiency) of I revenue and other financing sources over expenditures 2,728 (2,482) 30,811 (19,552) 11,505 56,733 Fund balance I Beginning of year 10,080 6,557 42,435 38,567 97,639 40,906 End of year $ 12,808 $ 4,075 $ 73,246 $ 19,015 $ 109,144 $ 97,639 I I I -SO- I -- CITY OF ANDOVER C Debt Service Funds C Combining Balance Sheet As of December 31, 1995 (with Comparative Totals as of December 31,1994) C 1991A Certificates State- ~ G.O. of Aid Bonds Indebtedness Bonds C Assets Cash and temporary investments $ 32,705 $ 6,972 $ 493 ~ Receivables Accounts Accrued interest C Delinquent taxes 7,056 2,281 Delinquent special assessments Deferred special assessments C Due from other governmental units 2,649 802 Total assets $ 42,410 $ 10,055 $ 493 C Liabilities and Fund Balance Liabilities C Deferred revenue $ 7,056 $ 2,280 $ Arbitrage rebate C T otalliabilities 7,056 2,280 Fund balance (deficit) C Reserved for debt service 35,354 7,775 493 Reserved for long-term investment Unreserved Undesignated C Total fund balance 35,354 7,775 493 Total liabilities and fund balance $ 42,410 $ 10,055 $ 493 C C C ~ -51- C C ------,---:::;;=-~~- c- -- - ----==-----~~------ I I I I Tax Special Increment Assessment Totals I Bonds Bonds 1995 1994 I $ 570,333 $ 7,067,351 $ 7,677,854 $ 9,867,213 I 19 36 157,645 157,681 161,280 9,337 12,123 I 36,439 36,439 41,619 38,433 4,727,610 4,766,043 2,223,450 3,953 5,887 13,291 10,132 I $ 612,755 $ 11,994,932 $ 12,660,645 $ 12,315,836 I I $ 38,433 $ 4,764,049 $ 4,811,818 $ 2,277,193 553 553 553 38,433 4,764,602 4,812,371 2,277,746 ---------- I 574,322 7,551,711 8,169,65~ 8,535,835 1,552,797 I (321,381 ) n,fl,J8.Q (50,542) 574,322 7,230,330 7,848,274 10,038,090 I $ 612,755 $ 11,994,932 $ 12,660,645 $ 12,315,836 I I I I -52- I ----- CITY OF ANDOVER C Debt Service Funds ~ Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31,1995 (with Comparative Totals for Year Ended December 31,1994) ~ ' I 1991A Certificates State- ~ G.O. of Aid Bonds Indebtedness Bonds Revenue C Taxes ad valorem $ 258,767 $ 78,723 $ Tax increments Special assessments C Intergovernmental revenue State aids 'O<.'~ I ...'Z __i'Z,3m HACA and other tax credits 107,257 25,969 C Other revenue Interest earned on investments 448 (205) 511 Miscellaneous 12 C Total revenue 366,472 104,499 57,880 Expenditures C Debt service Principal retirement 250,000 118,000 50,000 Interest 103,932 16,063 13,425 Other 523 657 C Total expenditures 354,455 134,063 64,082 Excess (deficiency) of revenue over expenditures 12,017 (29,564) (6,202) C Other financing sources (uses) Bonds proceeds (net) C Operating transfers in Capital Project Funds Enterprise Funds 37,630 C Operating transfers (out) Special Revenue Funds Capital Project Funds C Expendable Trust Funds Total other financing sources (uses) 37,630 Excess (deficiency) of revenue and other financing C sources over expenditures and other fmancing uses 12,017 8,066 (6,202) Fund balance (deficit) C Beginning of year 23,337 (291) 6,695 Residual equity transfers in 488 Residual equity transfers (out) (488) C End of year $ 35,354 $ 7,775 $ 493 C -53- C c- ~~-~ - - I I I I Tax Special Increment Assessment Totals Bonds Bonds 1995 1994 I $ $ $ 337,490 $ 338,888 770,354 770,354 I 3,855,686 3,855,686 3,682,954 .>2Z,d~_ 131,071 I 133,226 133,211 (7,773) 265,576 258,557. 564,649 I 42 54 23 762,623 4,121,262 5,412,736 4,850,796 I 140,000 7,285,000 7,843,000 6,468,000 79,860 1,060,684 1,273,964 1,327,171 I 335 7,561 9,076 64,009 220,195 8,353,245 9,126,040 7,859,180 I 542,428 (4,231,983) (3,713,304) (3,008,384) I 12,747 881,020 893,767 952,373 363,000 363,000 1,963,862 I 37,630 37,630 (19,973) I (775,545) (116,521) 12,747 1,244,020 1,294,397 2,041,826 - I 555,175 (2,987,963) (2,418,907) (966,558) - I 19,147 9,989,207 10,038,090 10,775,895 201,016 263,129 464,633 1,274,326 I (201,016) (34,038) (235,542) (1,045,573) $ 574,322 $ 7,230,330 $ 7,848,274 $ 10,038,090 - I -54- ~ I ~ ~ !II., . ~ ~ ~ c c c c c c c ~ I ~ C C m w m - ~1- - --;. ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER 1991A G.O. Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 1994 Over (Under) Budget Actual Budget Actual Revenue Taxes ad valorem $ 259,863 $ 258,767 $ (1,096) $ 272,596 Intergovernmental revenue HACA and other tax credits 107,243 107,257 14 107,275 Other revenue Interest earned on investments 448. 448 192 Total revenue 367,106 366,472 (634) 380,063 Expenditures Debt service Principal retirement 250,000 250,000 250,000 Interest 117,106 103,932 (13,174) 113,375 Other 523 523 509 Total expenditures 367,106 354,455 (12,651) 363,884 Excess of revenue over expenditures $ 12,017 $ 12,017 16,179 Fund balance Beginning of year 23,337 7,158 End of year $ 35,354 $ 23,337 -55- CITY OF ANDOVER Certificates of Indebtedness Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) 1995 1994 Over (Under) Budget Actual Budget Actual Revenue Taxes ad valorem $ 75,668 $ 78,723 $ 3,055 $ 66,292 Intergovernmental revenue HACA and other tax credits 25,953 25,969 16 25,936 Other revenue it Interest earned on investments — (205) (205) 200 Miscellaneous — 12 12 23 Total revenue 101,621 104,499 2,878 92,451 Expenditures Debt service Principal retirement 118,000 118,000 — 108,000 Interest 21,251 16,063 (5,188) 18,689 Total expenditures 139,251 134,063 (5,188) 126,689 Excess (deficiency) of revenue over expenditures (37,630) (29,564) 8,066 (34,238) Other financing sources Operating transfers in Enterprise Funds 37,630 37,630 — 37,630 Excess of revenue and other financing sources over expenditures $ — 8,066 $ 8,066 3,392 Fund balance (deficit) Beginning of year (291) (3,683) End of year $ 7,775 $ 291 I � -56- I I I - I I I I I I I I I I I I I I I I CITY OF ANDOVER State-Aid Bonds Debt Service Fund Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) State-Aid Bonds of 1984 Account Assets Cash and temporary investments Receivables Accrued interest $ Total assets $ Fund Balance Fund balance Reserved for debt service $ -57- State-Aid Bonds of 1988 Account $ 493 $ 493 $ 493 Totals 1995 1994 $ 493 $ 6,675 20 $ 493 $ 6,695 $ 493 $ 6,695 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, 1995 (with Comparative Actual Amounts for Year Ended December 31, 1994) ~ c 1995 1994 Actual State-Aid State-Aid Bonds Bonds Over ofl984 ofl988 (Under) Budget Account Account Total Budget Actual Revenue Intergovernmental revenue State aids $ 66,625 $ $ 57,369 $ 57,369 $ (9,256) $ 131,071 Other revenue Interest earned on investments 511 511 511 302 Total revenue 66,625 57,880 57,880 (8,745) 131,373 Expenditures Debt service Principal retirement 50,000 ~- 50,000 I 10,000 Interest 13,425 13,425 13,425 22,025 Other 650 657 657 7 1,293 Total expenditures 64,075 64,082 64,082 7 133,318 Excess (deficiency) of revenue over expenditures $ 2.550 (6,202) (6,202) $ (8,752) (1,945) Fund balance Beginning of year 488 6,207 6,695 8,640 Residual equity transfer in 488 488 Residual equity transfer (out) (488) (488) End of year $ $ 493 $ 493 $ 6.695 w ~ m c ~ 11.I ~ c c c c c c c c -58- c c =- . ----<~---=-:~ ~._~ I I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Tax Increment Bonds Debt Service Fund Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) TIF TIF TIF Project Project Commercial 1-1 1-2 Revitalization 1993B 1994B Totals Account Account Account 1995 1994 Assets Cash and temporary investments $ 570,333 $ $ $ 570,333 $ 19,147 Receivables Accrued interest 36 36 Deferred special assessments 38,433 38,433 Due from other governmental units 3,953 3,953 Total assets $ 612,755 $ $ $ 612,755 $ 19,147 Liabilities and Fund Balance Liabilities Deferred revenue $ 38,433 $ $ $ 38,433 $ Fund balance (deficit) Reserved for debt service 574,322 574,322 69,398 Unreserved Undesignated (50,251) Total fund balance 574,322 574,322 19,147 T otalliabilities and fund balance $ 612,755 $ $ $ 612,755 $ 19,147 -59- Fund balance (deficit) Beginning of year Residual equity transfer in Residual equity transfer (out) 69,398 612 ~ . ~ C C C C ~ C C C C C C C C C C C C CITY OF ANDOVER Tax Increment Bonds Debt Service Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31,1995 (with Comparative Actual Amounts for Year Ended December 31,1994) Revenue Tax increments Other revenue Interest earned on investments Miscellaneous Total revenue 1995 Actual TIF TIF Project Commercial 1-1 Revitalization 1993B Budget Account Account $ 220,000 $ 770,354 $ 5,500 (7,763) (10) 225,500 762,591 (10) Expenditures Debt service Principal retirement Interest Other Total expenditures 140,000 79,860 1,000 220,860 50,000 19,665 335 70,000 Excess (deficiency) of revenue over expenditures 4,640 762,591 (70,010) Other financing sources Bond proceeds (net) 12,747 Excess (deficiency) of revenue and other financing sources over expenditures $ 4,640 775,338 (70,010) (201,016) End of year $ 574,322 $ -60- ----- , __ =., I -- I - I - I -I - I -I - I -I I I = I -I ~ I I = I 11 ] I ~ I ~ I TIF Project 1-2 1994B Account $ 90,000 60,195 150,195 (150,153) (150,153) (50,251) 200,404 $ Total Over (Under) Budget $ 770,354 $ 550,354 42 42 (7,773) 42 762,623 (13,273) 42 537,123 pet 140 000 dtJ.~~ 79,860 335 (665) 220,195 (665) 542,428 537,788 12,747 555,175 $ 550,535 19,147 201,016 (201,016) $ 574,322 1994 Actual $ 8,558 8,558 980,000 157,617 4,455 1,142,072 (1,133,514) 885,000 (248,514) 267,661 1,045,573 (1,045,573) $ 19,147 -61- CITY OF ANDOVER Special Assessment Bonds Debt Service Fund Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) Improvement Bonds Series 1977 A Account Improvement Bonds of 1978 Account Assets Cash and temporary investments (deficit) Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units $ 634,904 $ 119,531 16,752 2,830 871 159 168,354 21,246 262 $ 821,143 $ 143,766 Total assets Liabilities and Fund Balance (Deficit) Liabilities Deferred revenue Arbitrage rebate Total liabilities $ 169,225 $ 21,406 169,225 21,406 Fund balance (deficit) Reserved for debt service Reserved for long-term investment Undesignated Total fund balance (deficit) 651,918 122,360 651,918 122,360 Total liabilities and fund balance (deficit) $ 143,766 $ 821,143 -62- .~-----r--- - ----= .c_--/ w Improvement Bonds of 1979 Account m c m m ~ .. $ c c $ m m w m m c c m c ~ * W $ $ r r r Improvement Improvement Improvement Improvement Refunding Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series r 1985A 1985B 1986A 1986B 1986C Account Account Account Account Account r $ 140,202 $ (310,720) $ 749,397 $ (10,974) $ 1,530,984 r 3,369 — 18,116 — 36,092 — — 1,394 — 22,830 r 21,541 — 4,617 39,053 460,937 313 4,482 r $ 165,112 $ (310,407) $ 773 $ 28 $ 2,055,325 r $ 21,541 $ — $ 6,011 $ 39,053 $ 483,767 r 21,541 — 6,011 39,053 483,767 r 143,571 = 767,513 — 1,571,558 r (310,407) — (10,974) 143,571 (310,407) 767,513 (10,974) 1,571,558 $ 165,112 $ (310,407) $ 773,524 $ 28,079 $ 2,055,325 =r - 1 (continued) - r r -63- =r CITY OF ANDOVER Special Assessment Bonds Debt Service Fund Balance Sheet (continued) As of December 31,1995 (with Comparative Totals as of December 31,1994) Improvement Bonds of 1989 Account Assets Cash and temporary investments (deficit) Receivables Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units $ 309,342 7,356 723 50,446 Total assets $ 367,867 Liabilities and Fund Balance (Deficit) Liabilities Deferred revenue Arbitrage rebate T otalliabilities $ 51,169 51,169 Fund balance (deficit) Reserved for debt service 316,698 Reserved for long-term investment Undesignated Total fund balance (deficit) 316,698 Total liabilities and fund balance (deficit) $ 367,867 -64- ,- --- Improvement Bonds of 1992 Account $ $ $ $ c c ~ Improvement Bonds of 1993A Account c " -- ~ ~ ~ ~ C C $ 891,627 15,742 7,800 438,674 64 $ 1,353,907 $ 446,474 553 447,027 906,880 ~ 906,880 ~ c! ~ I I ~ ~ ~ ~ $ 1,353,907 I I I I Temporary Improvement Improvement Improvement Bonds Series Bonds Series Bonds Series I 1994C 1994D 1995A Totals Account Account Account 1995 1994 I $ 183,069 $ 2,048,767 $ $ $ 781,222 7,067,351 9,822,719 I 2,746 44,366 10,276 157,645 161,110 954 1,708 36,439 41,619 I 493,299 2,150,744 878,699 4,727,610 2,223,450 766 5,887 5,927 $ 680,834 $ 4,245,585 $ 1 ,670, 197 $ 11 ,994,932 $ 12,254,825 I I $ 494,252 $ 2,152,452 $ 878,699 $ 4,764,049 $ 2,265,070 553 553 I 494,252 2,152,452 878,699 4,764,602 2,265,623 I 186,582 2,093,133 791,498 7,551,711 8,436,405 1,552,797 (321,381) - I 186,582 2,093,133 791,498 7,230,330 9,989,202 $ 680,834 $ 4,245,585 $ 1 ,670, 197 $ 11,994,932 $ 12,254,825 I - I - - I - I -I -65- I "1 C : I CITY OF ANDOVER Special Assessment Bonds Debt Service Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 1995 ~ (with Comparative Totals for Year Ended December 31, 1994) C Improvement Improvement Improvement C Bonds Series Bonds of Bonds of 1977A 1978 1979 Budget Account Account Account ~ Revenue Special assessments $ 1,456,580 $ 30,337 $ 7,461 $ Other revenue Interest earned on investments 282,000 20,328 3,325 (980) C Total revenue 1,738,580 50,665 10,786 (980) Expenditures ~ Debt service Principal retirement 6,585,000 50,000 15,000 25,000 Interest 1,057,370 34,250 5,250 813 Other 9,775 225 400 C Total expenditures 7,652,145 84,475 20,650 25,813 Excess (deficiency) of ~ revenue over expenditures (5,913,565) (33,810) (9,864) (26,793) Other financing sources (uses) ~ Bond proceeds (net) Operating transfers in Capital Project Funds Operating transfers (out) m Special Revenue Funds Capital Project Funds Expendable Trust Funds m Total other financing sources (uses) Excess (deficiency) of revenue and m other fmancing sources over expen- ditures and other fmancing uses $ (5,913,565) (33,810) (9,864) (26,793) Fund balance (deficit) ~ Beginning of year 685,728 132,224 60,831 Residual equity transfers in Residual equity transfers (out) (34,038) m End of year $ 651,918 $ 122,360 $ m ~ -66- ~ '= ~ -;--------:----- ' 1995 Actual ' Improvement Improvement Improvement Improvement Refunding Bonds Series Bonds Series Bonds Series Bonds Series Bonds Series 1985A 1985B 1986A 1986B 1986C Account Account Account Account Account $ 9,924 $ 3,133 $ 8,084 $ 8,692 $ 136,028 3,843 1,871 25,672 - 49,261 13,767 5,004 33,756 8,692 185,289 20,000 1,035,000 125,000 340,000 210,000 12,750 93,516 71,690 45,847 116,795 688 2,382 701 - 734 33,438 1,130,898 197,391 385,847 327,529 (19,671) (1,125,894) (163,635) (377,155) (142,240) -' - 806,802 - - - - - 363,000 - - 806,802 - 363,000 - (19,671) (319,092) (163,635) (14,155) (142,240) 163,242 8,685 931,148 3,181 1,713,798 $ 143,571 $ (310,407) $ 767,513 $ 10 974 ) $ 1,571,558 (continued) -67- CITY OF ANDOVER C Special Assessment Bonds Debt Service Fund C Statement of Revenue, Expenditures, and Changes in Fund Balance (continued) Budget and Actual Year Ended December 31, 1995 ~ (with Comparative Totals for Year Ended December 31,1994) 1995 ~ Actual Improvement Improvement Improvement Improvement ~ Bonds Bonds of Bonds of Bonds Series 1989 1992 1993A 1994C Account Account Account Account ~ Revenue Special assessments $ 44,524 $ 488,608 $ 829,032 $ 146,495 Other revenue Interest earned on investments 15,515 89,181 14,135 2,997 m Total revenue 60,039 577,789 843,167 149,492 Expenditures C Debt service Principal retirement 300,000 4,800,000 365,000 Interest 139,500 185,144 134,320 50,379 Other 695 462 360 254 m Total expenditures 440,195 4,985,606 499,680 50,633 Excess (deficiency) of m revenue over expenditures (380,156) (4,407,817) 343,487 98,859 Other financing sources (uses) ~ Bond proceeds (net) Operating transfers in Capital Project Funds ~ Operating transfers (out) Special Revenue Funds Capital Project Funds Expendable Trust Funds C Total other financing sources (uses) Excess (deficiency) of revenue and C other financing sources over expen- ditures and other financing uses (380,156) (4,407,817) 343,487 98,859 Fund balance (deficit) C Beginning of year 696,854 4,144,688 563,393 87,723 Residual equity transfers in 263,129 Residual equity transfers (out) m /o/Of_ $ 316,698 $ $ 906,880 $ 186,582 m M ~ -68- m . ~--._~,~ ----- - ---- I I I I 1994 Temporary I Improvement Improvement Bonds Series Bonds Series Over 1994D 1995A (Under) Account Account Total Budget Actual I $ 1,425,697 $ 717,671 $ 3,855,686 $ 2,399,106 $ 3,682,954 I 40,519 (91) 265,576 / (16,424) 555,397 1,466,216 717,580 4,121,262 2,382,682 4,238,351 I G.285,000~ 700,000 5,020,000 170,430 1,060,684 3,314 1,015,465 I 360 300 7,561 (2,214) 57,752 170,790 300 8,353,245 701,100 6,093,217 I 1,295,426 717,280 (4,231,983) 1,681,582 (1,854,866) I 74,218 ~2'0~ 881,020 67,373 I 0 363,000 1,963,862 I (19,973) (775,545) I (116,521) 74,218 1,244,020 1,244,020 1,119,196 I 1,295,426 791,498 (2,987,963) $ 2,925,602 (735,670) I 797,707 9,989,202 10,496,119 263,129 228,753 I (34,038) $ 2,093,133 $ 791,498 $ 7,230,330 $ 9,989,202 I I -69- I CITY OF ANDOVER Capital Project Funds Combining Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) City 1992 1994 1995 Buildings State- Tax Equipment Equipment Equipment Construction Aid Increment Assets Cash and temporary investments (deficit) $ $ $ 319,533 $ 203,618 $ 420,555 $5,174,191 Receivables Accounts Accrued interest 7,888 4,945 10,426 109,799 Delinquent taxes Delinquent special assessments Deferred special assessments 17,497 Due from other governmental units 19,628 Due from developer 163,070 Prepaid items Total assets $ $ $ 327,421 $ 208.563 $ 468,106 $ 5,447,060 Liabilities and Fund Balance (Deficit) Liabilities Accounts payable $ $ $ $ 1,220 $ 75 $ 25,112 Contracts payable 6,476 Due to other funds Deferred revenue 37,125 163,070 Arbitrage rebate Total liabilities 1,220 37,200 194,658 Fund balance (deficit) Reserved for long-tenn investments Unreserved Designated for capital projects 207,343 450,899 5,252,402 Designated for equipment 327,421 Undesignated (19,993) Total fund balance (deficit) 327,421 207,343 430,906 5,252,402 Total liabilities and fund balance (deficit) $ $ $ 327 ,421 $ 208,563 $ 468,106 $ 5,447,060 -70- -=--._~---:---- m to w m w .- I: i ~ m .. m ~ m c m ~ m ~ ~ w .~ c Permanent Kelsey 1995 Special Improvement Round Lake Totals Park Park Assessment Revolving Park 1995 1994 $ 134,400 $ - $ 49,541 $ 1,427,393 $ (64,220) $ 7,665,011 6,202,221 - - 2,386 418 = 2,804 6,555 3,488 24,696 70,766 232,008 114,402 1,591 - - 19,251 25,468 - 44,719 107,156 I = = 875,652 688,532 - 1,581,681 1,517,561 7,246 3,729 60,000 90,603 108,158 - - - - 163,070 177,544 - - - - - - 410 $ 137,888 $ - $ 978,772 $ 2,216,306 $ (4,220) $ 9,779,896 8,235,598 $ 1,475 $ - $ 76,319 $ 304 $ - $ 104,505 322,653 _ = 280,932 _ 287,408 138,743 20,000 0 20,000 20,000 894,903 714,001 1,809,099 1,823,482 - - - 3,890 - 3,890 3,890 1,475 - 1,252,154 718,195 20,000 2 224,902 2,308,768 - - - - 515,076 - - 1,488,137 1,341,991 - 8,740,772 5,456,612 136,413 - - 156,120 - 619,954 46,328 - - (1,761,519) - (24,220) (1,805,732) (91,186) ' 136,413 - (273,382) 1,498,111 (24,220) 7 554,994 5,926,830 ' $ 137,888 $ - $ 978,772 $2,216,306 $ (4,220) $ 9,779,896 8,235,598 -71- CITY OF ANDOVER Capital Project Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1995 (with Comparative Totals for Year Ended December 3 I, 1994) Revenue Tax increments Special assessments Intergovernmental revenue lfState aid Other Other revenue Interest earned on investments .,.Park dedication fees Refunds and reimbursements Miscellaneous Total revenue Expenditures Capital projects Capital outlay Interest Total expenditures Excess (deficiency) of revenue over expenditures Other fmancing sources (uses) Bond proceeds (net) Sale of property Operating transfers in Debt Service Funds Capital Project Funds Enterprise Funds Operating transfers (out) General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Expendable Trust Funds Total other fmancing sources (uses) Excess (deficiency) of revenue and other fmancing sources over expen- ditures and other fmancing uses Fund balance (deficit) Beginning of year Residual equity transfers in Residual equity transfers (out) End of year Of; 1\ '\/f (':oh ,-,~ f !\ : q.;' I .J''f. V' / ^ I 1992 Equipment $ (1,163) (1,163) (2,061) (2,061) (6,109) $ 1994 Equipment City Buildings Construction 1995 Equipment $ $ $ 1,297 6,950 1,297 6,950 -( 898 222'{;o5 195 222,200 898 1,~2 1,132 165 (215,250) (4,599) ~~~~r 498.239 - - 154,925 498,239 154,925 165 150,326 282,989 8,170 57,017 38,158 44,432 (38,323) $ $ 327.421 $ 207,343 .., ) '~ .tP .."."-{~..'".'!/ \/ -72- 4,909 4,909 9,508 9,508 ( State- Aid $ 3,154 15,570 10,774 29,498 19,288 1,640 20,928 8,570 8,570 422,336 $ 430.906 / / I ---- c c Tax Increment ~ $ ~ m 31,386 27,159 58,545 ~ / c 2,197,110 2,197,110 m (2,138,565) ~ 6,577,653 ~ c (9,868) ~ 6,567,785 4,429,220 ~ 823,182 800,785 (800,785) c $ 5,252,402 m c ~ I II ~ c - I I I Permanent Kelsey 1995 Special Improvement Round Lake Totals I Park Park Assessment Revolving Park 1995 1994 $ $ $ $ $ $ $ 707,388 210,965 182,300 39.6,419 653,904 /"- I ~~, ~15,570 ) 702,030 60,000 mr,01J'O''' ' I 7,461 154,605 66,815 283,034 . 248,208 143,382 . 143,382 140,074 8 8 344,660 371,819 109,165 150,851 710,230 249,115 60,000 1,270,232 2,560,769 I 2:1;49 V" .~ 4,735 4,941,466 129,455 9,020 5,187,706 I 18 25,859 3,382 61,730 260,649 4,753 4,967,325 129,455 12,402 5,249,436 I (109,798) (4,753) (4,257,095) 119,660 47,598 (6,556,128) (2,688,667) - ~~::S"4,891,228 1,829,307 I .'- .. 26,786 775,545 1,122,965 1,122,965 1,675,765 I 20,000 (229,988) (229,988) (30,000) (23,253) (23,253) (2,584) I (393,500) (393,500) (1,963,862) (116,121) (996,976) (1,122,965) (1,675,765) (19,947) 2,442,651 (1,250,2 I 7) 3,697,166 I (109,798) (4,753) (1,814,444) (1,130,557) 47,598 1,857,255 1,008,499 I 246,211 3,884,976 518,598 (71,818) 5,926,830 5,147,084 4,753 2,377,952 3,227,922 I (2,343,914) (267,882) (3,457,013) (228,753) $ 136,413 $ $ (273,382) $ 1,498,111 $ (24,220) $ 7,554,994 $ 5,926,830 I I I -73- I CITY OF ANDOVER m c c C JM .. State-Aid Capital Project Fund Balance Sheet As of December 31, 1995 (with Comparative Totals as of December 31, 1994) State-Aid State-Aid Revolving Project Totals Account Account 1995 1994 Assets Cash and temporary investments (deficit) $ (19,993) $ 440,548 . $ 420,555 $ 330,252 Receivables Accrued interest 10,426 10,426 9,838 Delinquent special assessments 146 Deferred special assessments 17,497 17,497 19,451 Due from other governmental units 19,628 19,628 102,372 Total assets $ 17,132 $ 450,974 $ 468,106 $ 462,059 Liabilities and Fund Balance Liabilities Accounts payable $ $ 75 $ 75 $ 497 Deferred revenue 37,125 37,125 39,226 T otalliabilities 37,125 75 37,200 39,723 Fund balance (deficit) Unreserved Designated for capital projects 450,899 450,899 441,704 Undesignated (19,993) (19,993) (19,368) Total fund balance (deficit) (19,993) 450,899 430,906 422,336 Total liabilities and fund balance $ 17,132 $ 450,974 $ 468,106 $ 462,059 -74- ~ ~ ~ ~ ~ C C ~ C C C C C ~ -~ I CITY OF ANDOVER I State-Aid Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance I Year Ended December 31,1995 (with Comparative Totals for Year Ended December 31,1994) I State-Aid State-Aid I Revolving Project Totals Account Account 1995 1994 I Revenue Special assessments $ 3,154 $ $ 3,154 $ 8,852 Intergovernmental revenue I State aid 15,570 15,570 702,030 Other revenue Interest earned on investments (1,963) 12,737 10,774 24,568 I Total revenue 1,191 28,307 29,498 735,450 Expenditures I Capital projects Capital outlay 176 19,112 19,288 69,204 Interest 1,640 1,640 I Total expenditures 1,816 19,112 20,928 69,204 Excess (deficiency) of I revenue over expenditures (625) 9,195 8,570 666,246 Other financing uses I Operating transfers (out) Capital Project Funds (280,586) I Excess (deficiency) of revenue over expenditures and other financing uses (625) 9,195 8,570 385,660 I Fund balance (deficit) Beginning of year (19,368) 441,704 422,336 36,676 I End of year $ (19,993) $ 450,899 $ 430,906 $ 422,336 I I I I -75- CITY OF ANDOVER Tax Increment Capital Project Fund Balance Sheet As of December 31, 1995 (with Comparative Totals as of December 31,1994) TIF TIF TIF Commercial Proj ect Project Revitalization 1-1 1-2 Totals Account Account Account 1995 1994 Assets Cash and temporary investments $ 5,174,191 $ $ $ 5,174,191 $ 868,529 Receivables Accrued interest 109,799 109,799 17,079 Delinquent taxes 1,591 Due from other governmental units 2,123 Due from developer 163,070 163,070 177 ,544 Total assets $ 5,447,060 $ $ $ 5,447,060 $ 1 ,066,866 Liabilities and Fund Balance Liabilities Accounts payable $ 25,112 $ $ $ 25,112 $ 37,812 Contracts payable 6,476 6,476 26,737 Deferred revenue 163,070 163,070 179,135 Tota11iabilities 194,658 194,658 243,684 Fund balance Unreserved Designated for capital projects 5,252,402 5,252,402 823,182 Tota11iabilities and fund balance $ 5,447,060 $ $ $ 5,447,060 $ 1 ,066,866 -76- ~----- --'-------- ,---_:- --=-" ~ c ~ C ~ C C ~ C C ~ ~ ~ .. C C ~ C C D C I CITY OF ANDOVER I Tax Increment Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1995 I (with Comparative Totals for Year Ended December 31, 1994) I TIF TIF TIF Commercial Project Project Revitalization 1-1 1-2 Totals I Account Account Account 1995 1994 Revenue Tax increments $ $ $ $ $ 707,388 I Other revenue Interest earned on investments 3,089 (3,436) 31,733 31,386 34,095 MisceIlaneous 3,282 23,877 27,159 23,877 I Total revenue 6,371 (3,436) 55,610 58,545 765,360 Expenditures I Capital projects Capital outlay 901,948 1,296,662 (1,500) 2,197,110 1,492,001 Interest 291 Total expenditures 901,948 1,296,662 (1,500) 2,197,110 1,492,292 I Excess (deficiency) of revenue over expenditures (895,577) (1,300,098) 57,110 (2,138,565) (726,932) I Other financing sources (uses) Bond and certificate proceeds (net) 5,925,350 652,303 6,577,653 Sale of property 26,786 I Operating transfers (out) General Fund (30,000) Capital Project Fund (9,868) (9,868) I Total other financing sources (uses) 5,925,350 642,435 6,567,785 (3,214) Excess (deficiency) of revenue I and other financing sources over expenditures and other financing uses 5,029,773 (657,663) 57,110 4,429,220 (730,146) I Fund balance Beginning of year 79,507 743,675 823,182 1,553,328 I Residual equity transfers in 222,629 578,156 800,785 Residual equity transfers (out) (800,785) (800,785) End of year $ 5,252,402 $ $ $ 5,252,402 $ 823,182 I I I -77- I 1__- --- ---------.------ -----.--.--------.--- ---------- CITY OF ANDOVER Special Assessment Capital Project Fund Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) Water Trunk Account Storm Sewer Trunk Account Improvement Bonds Series 1992 Construction Account Sewer Trunk Account Assets Cash and temporary investments (deficit) Receivables Accounts Accrued interest Delinquent special assessments Deferred special assessments Due from other governmental units Prepaid items $ 724,575 $ 64,033 $ 656,047 $ 10,084 18,929 64 487,771 250,711 4,798 2,319 $ 1,236,073 $ 64,033 $ 919,225 $ Total assets Liabilities and Fund Balance (Deficit) Liabilities Accounts payable Contracts payable Deferred revenue Total liabilities $ 8,003 $ $ $ 250,775 250,775 506,700 514,703 Fund balance (deficit) Reserved for long-term investments Unreserved Designated for capital projects Undesignated Total fund balance (deficit) 721,370 64,033 668,450 668,450 721,370 64,033 Total liabilities and fund balance (deficit) $ 1,236,073 $ 64,033 $ 919,225 $ -78- --- c ~ ~ ~ ~ C C ~ C D ~ C C C C C c c c I I I I Improvement Improvement Improvement Improvement Bonds Bonds Bonds Bonds Series 1993A Series 1994C Series 1994D Series 1995A Unfinanced I Construction Construction Construction Construction Improvement Totals Account Account Account Account Account 1995 1994 I $ $ 32,274 $ (777,985) $ (20,726) $ (628,677) $ 49,541 $ 4,003,374 I 2,386 2,386 6,137 6,396 8,216 24,696 69,592 258 19,251 76,775 I 137,170 875,652 942,000 129 7,246 3,433 410 I $ $ 38,670 $ (775,599) $ (12,510) $ (491,120) $ 978,772 $ 5,101,721 I $ $ 4,386 $ 14,239 $ 40,013 $ 9,678 $ 76,319 $ 85,962 I 162,326 33,152 85,454 280,932 112,006 137,428 894,903 1,018,777 4,386 176,565 73,165 232,560 1,252,154 1,216,745 I 515,076 I 34,284 1,488,137 3,369,900 (952,164) (85,675) (723,680) (1,761,519) 34,284 (952,164) (85,675) (723,680) (273,382) 3,884,976 I $ $ 38,670 $ (775,599) $ (12,510) $ (491,120) $ 978,772 $ 5,101,721 I I I I -79- I " iW CITY OF ANDOVER Special Assessment Capital Project Fund Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 3 I, 1995 (with Comparative Totals for Year Ended December 31,1994) c ~ Revenue Special assessments Other revenue Interest earned on investments Miscellaneous Total revenue Improvement Stonn Bonds Water Sewer Sewer Series 1992 Trunk Trunk Trunk Construction Account Account Account Account $ 164,697 $ $ 7,969 $ (10,615) (657) 19,404 43,788 210,722 22,611 111,327 364,804 21,954 138,700 43,788 ~ ~ ~ Expenditures Capital projects Capital outlay Interest Total expenditures c 127,671 369 128,040 33 3,743 ~ 33 3,743 Excess (deficiency) of revenue over expenditures 236,764 21,954 138,667 40,045 ~ Other financing sources (uses) Bond proceeds (net) Operating transfers in Debt Service Funds Capital Project Funds Operating transfers (out) Special Revenue Funds Debt Service Funds Capital Project Funds Expendable Trust Funds Total other financing sources (uses) ~ 688,300 42,079 266,597 (225,822) (167,678) c ~ 462,478 42,079 98,919 Excess (deficiency) of revenue and other financing sources over expen- ditures and other financing uses 699,242 64,033 237,586 40,045 c Fund balance (deficit) Beginning of year Residual equity transfers (out) 22,128 430,864 905,060 (945,105) ~ End of year $ 721,370 $ 64,033 $ 668,450 $ c ~ ~ c -80- c " I I I Improvement Improvement Improvement Improvement I Bonds Bonds Bonds Bonds Series I993A Series I994C Series I 994D Series I995A Unfinanced Construction Construction Constructi on Constructi on Improvement Totals Account Account Account Account Account 1995 1994 I $ $ $ $ $ 38,299 $ 210,965 $ 449,379 I 65,777 20,706 (3,264) 17,348 2,118 154,605 143,145 344,660 85,288 65,777 20,706 (3,264) 17,348 40,4]7 710,230 677,812 I 11,002 581,027 1,376,105 1,825,309 1,016,576 4,941,466 3,116,107 I 16,825 8,665 25,859 61,291 11 ,002 581,027 1,392,930 1,825,309 1,025,241 4,967,325 3,177,398 I 54,775 (560,321 ) (1,396,194) (1,807,961) (984,824) (4,257,095) (2,499,586) 1,829,307 1,829,307 4,741,228 I 775,545 4,550 121,439 1,122,965 1,675,765 I (2,584) (393,500) (1,963,862) (111,571) (4,550) (116,121) (1,395,179) I (19,947) 1,722,286 116,889 2,442,651 3,810,966 I 54,775 (560,321) (1,396,194) (85,675) (867,935) (1,814,444) 1,311,380 I 1,344,034 594,605 444,030 144,255 3,884,976 2,573,596 (1,398,809) (2,343,914) I $ $ 34,284 $ (952,164 ) $ (85,675) $ (723,680) $ (273,382) $ 3,884,976 I I I -81- I CITY OF ANDOVER C Enterprise Funds ~ Combining Balance Sheet As of December 31,1995 , (with Comparative Totals as of December 31,1994) ~ Totals ~ Water Sewer 1995 1994 Assets C : I Current assets Cash and temporary investments $ 594,933 $ 239,273 $ 834,206 $ 658,847 Receivables C I, Accounts 108,626 258,992 367,618 274,448 Accrued interest 14,688 5,021 19,709 10,918 Delinquent special assessments 5,272 5,272 3,703 ~ Deferred special assessments 8,462 8,462 8,462 Due from other governmental units 173 173 381 Prepaid items 3,814 43,711 47,525 35,703 ~ Inventory 9,692 9,692 6,106 Total current assets 731,753 560,904 1,292,657 998,568 Property and equipment C Furniture and equipment 517,065 108,005 625,070 482,902 Machinery 898,814 898,814 898,814 ~ Collection and distribution systems 9,729,204 13,694,906 23,424,110 18,679,525 11,145,083 13,802,911 24,947,994 20,061,241 Less accumulated depreciation 1,605,978 2,491,287 4,097,265 3,620,740 ~ Net property and equipment 9,539,105 11,311,624 20,850,729 16,440,501 Total assets $ 10,270,858 $ 11,872,528 $ 22,143,386 $ 17,439,069 C Liabilities and Fund Equity Current liabilities C Accounts payable $ 4,635 $ 5,890 $ 10,525 $ 12,381 Accrued items 7,630 4,098 11,728 17,100 C Due to other governmental units 342 2,337 2,679 2,526 Deposits payable 75 75 75 Deferred revenue 2,951 2,951 1,382 Total current liabilities 12,682 15,276 27,958 33,464 C Fund equity Contributed capital 9,383,680 11,246,037 20,629,717 16,272,592 C Retained earnings Unreserved 874,496 611,215 1,485,711 1,133,013 Total fund equity 10,258,176 11,857,252 22,115,428 17,405,605 C Total liabilities and fund equity $ 10,270,858 $ 11 ,872,528 $ 22,143,386 $ 17,439,069 C -82- C ----- -- - ------ - - --. I CITY OF ANDOVER I Enterprise Funds Combining Statement of Revenue, Expenses, and Changes in Retained Earnings I Year Ended December 31,1995 (with Comparative Totals for Year Ended December 31,1994) I Totals Water Sewer 1995 1994 Operating revenue I User charges $ 451,356 $ 698,542 $ 1,149,898 $ 962,019 Meters 44,723 44,723 48,238 Permit fees 13,600 13,600 18,200 I Penalties 7,082 11 ,222 18,304 19,279 Other 130 21,606 21,736 3,520 Total operating revenue 516,891 731,370 1,248,261 1,051,256 -I Operating expenses Personal services 148,263 98,888 247,151 204,836 Supplies 26,203 5,295 31,498 37,084 I Meters 599 Other services and charges 89,209 33,755 122,964 94,728 Disposal charges 423,121 423,121 362,880 - I Total operating expenses 263,675 561,059 824,734 700,127 Operating income before depreciation 253,216 170,311 423,527 351,129 I Depreciation 240,097 236,428 476,525 441,032 Operating income (loss) 13,119 (66,117) (52,998) (89,903) I Other income Interest income 17,883 7,482 25,365 23,557 - I Income (loss) before operating transfers 31,002 (58,635) (27,633) (66,346) I Operating transfers in Capital Project Funds 30,500 Operating transfers (out) I Debt Service Funds (37,630) (37,630) Capital Project Funds (20,000) Total operating transfers (7,130) (57,630) I Net income (loss) 31,002 (65,765) (34,763) (123,976) Less capital contributed from utility customers (45,319) (45,319) (44,638) -I Add credit for depreciation on contributed assets 212,406 220,374 432,780 411,851 Income closed to retained earnings 198,089 154,609 352,698 243,237 - I Retained earnings - Beginning of year 676,407 456,606 1,133,013 889,776 - I End of year $ 874,496 $ 611,215 $ 1,485,711 $ 1,133,013 -83- -I CITY OF ANDOVER ~ Enterprise Funds C Combining Statement of Cash Flows Year Ended December 31, 1995 (with Comparative Totals for Year Ended December 31, 1994) ~ Totals Water Sewer 1995 1994 ~ Cash flows from operating activities Operating income (loss) $ 13,119 $ (66,117) $ (52,998) $ (89,903) Adjustments to reconcile operating income (loss) to net cash provided by operating activities ~ Depreciation 240,097 236,428 476,525 441,032 Change in assets and liabilities Receivables ~ Accounts (15,615) (77,555) (93,170) (47,156) Delinquent special assessments (1,569) (1,569) (1,244) Deferred special assessments 20,244 C Due from other governmental units 208 208 (13) Prepaid items (3,394) (8,428) (11 ,822) (5,463) Inventory (3,586) (3,586) (591) Accounts payable 304 (2,160) (1,856) (1,311) ~ Accrued items (1,596) (3,776) (5,372) 4,180 ' , Due to other governmental units 153 153 (163) Deposits payable 13 C Deferred revenue 1,569 1,569 1,244 ' ' Net cash provided by operating activities 229,482 78,600 308,082 320,869 C Cash flows from capital and related financing activities ~ Acquisition of capital assets (125,24 I) (16,926) (142,167) (102,490) Cash flows from investing activities Interest received 11 ,033 5,541 16,574 25,041 ~ Cash flows from noncapita1 fmancing activities Operating transfer from Capital Project Funds 30,500 30;500." , C Operating transfer to Capital Project Funds f -) (20,000) Operating transfer to Debt Service Funds (37,630) '. (37,630)/ (37,630) Net cash used by noncapital ""..>",~",~-f'-<'~ ~ fmancing activities (7,130) (7,130) (57,630) Net increase in cash and temporary investments 115,274 60,085 175,359 185,790 ~ Cash and temporary investments Beginning of year 479,659 179,188 658,847 473,057 ~ ~ I End of year $ 594,933 $ 239,273 $ 834,206 $ 658,847 Noncash capital and related financing activities ~ Property and equipment contributed I from Capital Project Funds $ 2,068,361 $ 2,676,225 $ 4,744,586 $ C -84- ~ ' , ._~- - . -.. = ,-- -- - --- ......... ------ - --- --- . - 1 I I I 1 I I I 1 1 1 I 1 -I -I 1 -I I 1 CITY OF ANDOVER Water Fund Comparative Balance Sheet As of December 31,1995 and 1994 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 Unreserved Total fund equity Total liabilities and fund equity -85- I -, 1995 1994 $ 594,933 $ 479,659 108,626 93,011 14,688 7,838 3,814 420 9,692 6,106 731,753 587,034 517,065 391,823 898,814 898,814 9,729,204 7,660,844 11,145,083 8,951,481 1,605,978 1,365,881 9,539,105 7,585,600 $ 10,270,858 $ 8,172,634 $ 4,635 $ 4,331 7,630 9,226 342 189 75 75 12,682 13,821 9,383,680 7,482,406 874,496 676,407 10,258,176 8,158,813 $ 10,270,858 $ 8,172,634 ~,;, -- ~ ~ c c c c c c c ~ ~ c c ~, .. ~ ~ c c c c CITY OF ANDOVER Water Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended December 31,1995 and 1994 1995 1994 Amount Percent Amount Percent Operating revenue User charges $ 451,356 87.3 % $ 406,371 83.8 % Meters 44,723 8.7 48,238 9.9 Permit fees 13,600 2.6 18,200 3.8 Penalties 7,082 1.4 8,164 1.7 Other 130 4,134 0.8 Total operating revenue 516,891 100.0 485,107 100.0 Operating expenses Personal services 148,263 28.7 131,586 27.1 Supplies 26,203 5.1 31,676 6.5 Meters 599 0.1 Other services and charges _~9,209, 17.2 70,001 14.5 Total operating expenses " d.-\ 263,675 \ 51.0 233,862 48.2 ,.___-m'- _\ Operating incorne before depreciation 253,216 49.0 251,245 51.8 Depreciation :~-------1 46.5 209,328 43.2 ~_____+ 240,097 I ''-----_---I Operating income W-J-9. 2.5 41,917 8.6 Other income Interest income 17,883 3.5 16,774 3.5 Income before operating transfers 31,002 6.0 % 58,691 12.1 % Operating transfers (out) Capital Project Funds (20,000) Net income 31,002 38,691 Less capital contributed from utility customers (45,319) (44,638) Add credit for depreciation on contributed assets 212,406 191,478 Income closed to retained earnings 198,089 185,531 Retained earnings Beginning of year 676,407 490,876 End of year $ 874,496 $ 676,407 -86" ~~- I I I 1 I 1 I I I 1 I I 1 I I -I -I -I 1 CITY OF ANDOVER Water Fund Statement of Cash Flows Years Ended December 31,1995 and 1994 Cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities Depreciation Change in assets and liabilities Accounts receivable Prepaid items Inventory Accounts payable Accrued items 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 flows from investing activities Interest received Cash flows 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 Noncash capital and related financing activities 1995 1994 $ 13,119 $ 41,917 240,097 209,328 (15,615) (18,804) (3,394) (420) (3,586) (591) 304 (4,059) (1,596) 1,902 153 (163) 13 229,482 229,123 (76,905) 11,033 17,177 (20,000) 115,274 149,395 479,659 330,264 $ 594,933 $ 479,659 Property and equipment contributed from Capital Project Funds $ 2,068,361 -87- I $ CITY OF ANDOVER t Sewer Fund [ Comparative Balance Sheet As of December 31, 1995 and 1994 [ 1995 1994 [ Assets Current assets [ Cash and temporary investments $ 239,273 $ 179,188 Receivables ~ Accounts 258,992 181,437 Accrued interest 5,021 3,080 Delinquent special assessments 5,272 3,703 [ Deferred special assessments 8,462 8,462 Due from other governmental units 173 381 Prepaid items 43,711 35,283 [ Total current assets 560,904 411,534 Property and equipment [ Furniture and equipment 108,005 91,079 Collection system 13,694,906 11,018,681 13,802,911 11,109,760 Less accumulated depreciation 2,491,287 2,254,859 t Net property and equipment 11,311,624 8,854,901 Total assets $ 11,872,528 $ 9,266,435 C Liabilities and Fund Equity C Current liabilities ' ' Accounts payable $ 5,890 $ 8,050 Accrued items 4,098 7,874 C Due to other governmental units 2,337 2,337 Deferred revenue 2,951 1,382 Total current liabilities 15,276 19,643 C Fund equity Contributed capital 11,246,037 8,790,186 C Retained earnings Unreserved 611,215 456,606 Total retained earnings 11,857,252 9,246,792 C Total liabilities and fund equity $ 11,872,528 $ 9,266,435 C t -88- t -- -"------'"=- '-~""=;'-- ~-- 1 1 I 1 1 1 I 1 1 I I I 1 I I I I I I CITY OF ANDOVER Sewer Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended December 31,1995 and 1994 -89- CITY OF ANDOVER Sewer Fund Statement of Cash Flows Years Ended December 31,1995 and 1994 Cash flows from operating activities Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities Depreciation Change in assets and liabilities Receivables Accounts Delinquent special assessments Deferred special assessments Due from other governmental units Prepaid items Accounts payable Accrued items Deferred revenue Net cash provided by operating activities Cash flows from capital and related financing activities Acquisition of capital assets Cash flows from investing activities Interest received Cash flows from noncapital financing activities Operating transfer from Capital Project Funds Operating transfer to Debt Service Funds Net cash used by noncapital financing activities Net increase in cash and temporary investments Cash and temporary investments Beginning of year End of year Noncash capital and related financing activities Property and equipment contributed from Capital Project Funds -90- 1995 $ (66,117) 236,428 (77,555) (1,569) 208 (8,428) (2,160) (3,776) 1,569 78,600 (16,926) 5,541 30,500 (37,630) (7,130) 60,085 179,188 $ 239,273 $ 2,676,225 1994 ~ W ~ ~ C ~ C ~ C ~ ~ C C C C C C C C $ (131,820) 231,704 (28,352) (1,244) 20,244 (13) (5,043) 2,748 2,278 1,244 91,746 (25,585) 7,864 (37,630) (37,630) 36,395 142,793 $ 179,188 $ -=-I==oot-+- I I I I I I I I I I - I I - I I I - I - I I 1 CITY OF ANDOVER Central Equipment Maintenance Internal Service Fund Comparative Balance Sheet As of December 31,1995 and 1994 1995 1994 Assets Cash and temporary investments Receivables Accounts Accrued interest Inventory Total assets $ 50,149 $ 71,185 181 456 822 28,422 22,564 $ 79,027 $ 94,752 Liabilities and Fund Equity Liabilities Accounts payable Accrued items Total liabilities Total liabilities and fund equity $ 14,452 $ 9,895 1,094 752 15,546 10,647 50,000 50,000 13,481 34,105 63,481 84,105 $ 79,027 $ 94,752 Fund equity Contributed capital Retained earnings Unreserved Total fund equity -91- CITY OF ANDOVER I Wi ml , I , I I ~I ~ I ~I m c Q C1 I I m. ... 01 m c c Central Equipment Maintenance Internal Service Fund Statement of Revenue, Expenses, and Changes in Retained Earnings Years Ended December 31,1995 and 1994 1995 1994 Operating revenue User charges to other City funds J 187,800 $ 166,770 Other Miscellaneous 124 Total operating revenue 187,800 166,894 Operating expenses Personal services 57,979 43,978 Supplies 104,571 80,784 Other services and charges 38,235 42,498 Capital outlay 38,657 32,193 Total operating expenses 239,442 199,453 Operating loss (51,642) (32,559) Other income Interest income (charged) (482) 925 Loss before operating transfers (52,124) (31,634) ---- Operating transfers in General Fund 31,500 43,200 Net income (loss) (20,624) 11,566 Retained earnings Beginning of year 34,105 22,539 End of year $ 13,481 $ 34,105 c m j \0~ ~} ~ '\J \'f' tV -92- Q m m w -~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER Central Equipment Maintenance Internal Service Fund Statement of Cash Flows Years Ended December 31,1995 and 1994 1995 1994 Cash flows from operating activities Operating loss Adjustments to reconcile operating loss to net cash used by operating activities Change in assets and liabilities Accounts receivable Inventory Accounts payable Accrued expenses Net cash used by operating activities $ (51,642) $ (32,559) Net increase (decrease) in cash and temporary investments 181 (181) (5,858) (951 ) 4,557 4,496 342 (38) (52,420) (29,233) (116) 1,463 31,500 43,200 (21,036) 15,430 71, I 85 55,755 $ 50,149 $ 71,185 Cash flows from investing activities Interest received (paid) Cash flows from noncapital financing activities Operating transfer from General Fund Cash and temporary investments Beginning of year End of year -93- CITY OF ANDOVER m c m Trust and Agency Funds Combining Balance Sheet As of December 31,1995 (with Comparative Totals as of December 31,1994) Expendable Trust Administrative Flexible Compensated Trust Benefits Absences Assets Cash and temporary investments $ 161,916 $ 3,407 $ 36,236 Cash and investments held by trustee Receivables Accounts Accrued interest 4,786 380 Total assets $ 166,702 $ 3,407 $ 36,616 Liabilities and Fund Balance Liabilities Accounts payable $ $ $ Accrued items 89 Deposits payable Deferred compensation payable to employees Total liabilities 89 Fund balance Unreserved Designated for employee benefits 3,407 36,527 Designated for assessment administration 166,702 Total fund balance 166,702 3,407 36,527 Total liabilities and fund balance $ 166,702 $ 3,407 $ 36,616 c w c m ~ .. I, I .. c c m ~ m ~ ~ ~ ~ o -94- ~-r--- -I I I I Totals I Agency 1995 1994 1 $ 366,410 $ 567,969 $ 903,499 93,130 93,130 56,027 I 7,624 5,166 4,426 I $ 459,540 $ 666,265 $ 971,576 I $ 4,422 $ 4,422 $ 552 I 89 361,988 361,988 667,163 93,130 93,130 52,547 I 459,540 459,629 720,262 I 39,934 20,628 166,702 230,686 I 206,636 251,314 $ 459,540 $ 666,265 $ 971,576 I I I I I -95- I CITY OF ANDOVER Expendable Trust Funds Combining Statement of Revenue, Expenditures, and Changes in Fund Balance Year Ended December 31, 1995 (with Comparative Totals for Year Ended December 31,1994) Revenue Other revenue Interest earned on investments Miscellaneous Payroll withho1dings for flexible benefit plan Other Total revenue Expenditures Current Miscellaneous Employee benefits Excess (deficiency) of revenue over expenditures Other financing sources (uses) Operating transfers in General Fund Debt Service Funds Capital Project Funds Operating transfers (out) General Fund Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses Fund balance Beginning of year End of year Administrative Trust Fund $ 7,016 7,016 7,016 (71,000) (71,000) (63,984) 230,686 $ 166,702 Flexible Benefits Fund $ 14,466 14,466 14,539 (73) 3,480 $ 3,407 -96- Compensated Absences Fund $ 328 17,935 18,263 6,884 11,379 8,000 8,000 (73) 19,379 Totals m c m m m 1995 1994 $ 7,344 14,466 17,935 39,745 $ 8,364 8,915 8,113 25,392 m m ~ c ~ c ~ c c .~ ~ 17,148 $ 36,527 /--------- -; ! 21,423 ) 5,649 / --------/ 18,322 19,743 8,000 "~ ;/./ """"\. / 't, - (71,000) j '~015{ (44,678) 251,314 3,000 116,521 19,947 (65,000) 74,468 94,211 157,103 $ 206,636 $ 251,314 - c C PI ~ I CITY OF ANDOVER I Agency Funds Combining Statement of Changes in Assets and Liabilities Year Ended December 31,1995 I Balance Balance January 1 Additions Deductions December 31 I Escrow Fund Assets I Cash and temporary investments $ 667.715 $ 366,410 $ 667,715 $ 366,410 Liabilities I Accounts payable $ 552 $ 4,422 $ 552 $ 4,422 Deposits payable 667,163 361,988 667,163 361,988 I Tota11iabi1ities $ 667,715 $ 366,410 $ 667.715 $ 366,410 ICMA Deferred Compensation Fund I Assets Cash and investments held by trustee $ 38,228 $ 20,538 $ 37,503 $ 21,263 I Liabilities I Deferred compensation payable to employees $ 38,228 $ 20.538 $ 37.503 $ 21,263 PEBSCO Deferred Compensation Fund I Assets Cash and investments held by trustee $ 14,319 $ 58.745 $ 1,197 $ 71,867 I Liabilities I Deferred compensation payable to employees $ 14,319 $ 58,745 $ 1,197 $ 71,867 Totals - All Agency Funds I Assets $ 667,715 $ 366,410 $ 667,715 $ 366,410 Cash and temporary investments I Cash and investments held by trustee 52,547 79,283 38,700 93,130 Total assets $ 720,262 $ 445,693 $ 706,415 $ 459,540 I Liabilities Accounts payable $ 552 $ 4,422 $ 552 $ 4,422 I Deposits payable 667,163 361,988 667,163 361,988 Deferred compensation payable to employees 52,547 79,283 38,700 93,130 Total liabilities $ 720,262 $ 445,693 $ 706,415 $ 459,540 I -97- I m u c c c m m ~ to C C m ~ w c ~ ~ c " ... ~~--~--=--- ~ I ~ I ~ I ~ I ~ I ~ I I I -I - I I - I I I I I I I I STATISTICAL SECTION (uNAUDITED) - - I c: c C! C C 01 O! m m m, I Ci I Oi c c ~ ~ C C o --- -------===== ~ - -I I -I I I I I -I I I -I 1 I I I I I I 'I 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, I 07,808 430,024 614,266 120,708 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 1,472,108 410,733 745,156 227,960 40,496 91,323 2,987,776 1995 1,810,213 410,212 747,627 549,606 46,152 31,986 3,595,796 -98- CITY OF ANDOVER c c c c m m m c ~ m c c c ~ ~ ~ ~ ~ ~ General Fund Expenditures by Function Fiscal General Public Public Parks and Year Government Safety Works Sanitation Recreation 1988 $ 521,775 $ 496,710 $ 333,978 $ 12,030 $ 240,574 1989 645,521 705,415 296,275 18,658 218,571 1990 593,778 754,914 307,046 29,168 261,449 1991 579,797 805,393 374,138 14,83 I 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 1995 932,460 1,060,210 637,551 34,795 329,416 -99- III ... -+---I-- I I I Economic I Recycling Development $ $ I 20,112 39,567 14,289 I 46,771 17,447 I 39,622 17,659 50,461 22,836 I 49,574 21,916 I 58,260 22 I I I I I 1 I I 1 I UnaIlocated Total $ 136,209 $ 1,741,276 97,797 2,002,349 129,589 2,129,800 72,521 2,155,995 77,060 2,391,008 53,691 2,575,052 86,278 2,904,153 93,546 3,146,260 -100- CITY 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 1986 $ 802,877 $ 784,514 $ 18,558 $ 803,072 100.02 % 1987 880,048 862,018 19,185 881,203 100.13 1988 995,590 978,595 16,832 995,427 99.98 1989 1,006,409 987,289 13,439 1,000,728 99.44 1990 993,164 967,055 22,178 989,233 99.60 1991 1,079,510 1,054,36 I 21,936 1,076,297 99.70 1992 1,482,416 1,440,883 22,028 1,462,911 98.68 1993 1,588,431 1;556,622 31,536 1,588,158 99.98 1994 1,806,293 1,774,507 43,566 1,818,073 100.65 1995 2,139,278 2,114,587 44,084 2,158,671 100.91 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 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 1995 569,629 517,981 90.93 28,672 546,653 95.97 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:--- I -- " ' ~ c C 1M i.l C C C C C C C C C C C C C [ -- !: - 1 I ~ 11 -I I - I - I I - I -I 1 -I I I I I I I I I CITY OF ANDOVER Computation of Legal Debt Margin December 31,1995 Market value of taxable property $ 679,429,100 Debt limit (2.00% of market value) $ 13,588,582 Amount of debt applicable to debt limit Total bonded debt $ 25,350,000 Less Bonded debt not repayable solely from tax levies Special Assessment Improvement Bonds 16,430,000 Tax Increment Bonds 7,270,000 State-Aid Street Bonds 150,000 Available in Debt Service Funds 35,354 Net debt applicable to debt limit 1,464,646 Legal debt margin $ 12,123,936 -102- I L' , . i , ' CITY OF ANDOVER Schedule of Sources and Uses of Public Funds ,. L.; For Tax Increment Financing Development District No.1 Year Ended December 31,1995 Accounted C Original for in Current Amount Budget Prior Years Year Remaining 0 Sources of funds Tax increments $ 10,265,304 $ 3,431,230 $ 770,354 $ 6,063,720 Special assessments 5,755 (5,755) C State credits 57,543 (57,543) Bond proceeds 21,719,500 2,648,195 6,590,400 12,480,905 Land sales 235,101 (235,101) C Interest 101,970 403,733 23,613 (325,376) Miscellaneous 109,577 27,201 (136,778) Total sources of funds 32,086,774 6,891,134 7,411,568 17,784,072 C Uses offunds Capital outlay 20,610,375 3,016,159 2,197,110 15,397,106 Administrative costs and other 1,959,905 40,923 1,918,982 m Debt service Principal 5,835,000 1,970,000 140,000 3,725,000 Interest and other costs 4,669,704 895,723 80,195 3,693,786 0 Total uses of funds 33,074,984 5,922,805 2,417,305 24,734,874 District balance (deficit) (988,210) 968,329 4,994,263 (6,950,802) ~ Transfers (to) other funds (126,000) (9,868) 135,868 Remaining funds (deficit) $ (988,210) $ 842,329 $ 4,984,395 $ (6,814,934) C SUPPLEMENTAL INFORMATION t Name of District Tax Increment District - Development District No.1 Type of District and Authorizing Statutes Redevelopment District established in 1986 under C Section 472 of Minnesota Statutes for a duration of 25 years from receipt of first increment. C Financing Total bonds issued General Obligation Tax Increment Bonds Series 1987 A $ 1,065,000 C General Obligation Tax Increment Bonds Series 1987B 205,000 General Obligation Tax Increment Bonds Series 1993B 520,000 C General Obligation Tax Increment Refunding Bonds Series 1994B 885,000 General Obligation Tax Increment Bonds Series 1995D 6,055,000 Total bonds issued $ 8,730,000 C Outstanding Bonds at December 31, 1995 $ 7,270,000 0 -103- C --- ~~ --r--::":-: j 11 J I ~ I == I i I ~ I ~ I = I I I -I I I I I I I I I SINGLE AUDIT AND OTHER REOUlRED REPORTS c 0, C o C C W W ~I. .. c c ~ ~ c c c c c c .. 1. --=-----n_ _ _';""":;1_ ~-~ - -1--------=-=... -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 WILLIAM J, LAUER, 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, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related to the fixed assets of the General Fixed Assets Account Group. These general purpose fmancial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose fmancial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose fInancial statements are free of material misstatement. An audit includes exarnining, on a test basis, evidence supporting the amounts and disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Andover 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 fmancial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose fmancial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose fmancial statements taken as a whole. /}/J1~ I '1t(rrJ~ J I{ 0Muiw-414., R~d- fec.)~ A . March 22, 1996 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -104- ~ ~ ~ ~i I ~.' ! ~ ~ .. m c c c ~ '-' C C ~ ~ c c c c c ~ ,. l. - ----r- .d 3 1 - 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 31,1995 Federal Grantor/Pass- Through Grantor/Program Title Federal CFDA Number Federal Grant Amount Current Year Activity Revenue State and Federal Local Expenditures US. Department of Housing and Urban Development Passed Through Anoka County Community Development Block Grant 14.218 $ 109,557 $ 25,851 $ $ 25,851 Commissioner of Natural Resources Cooperative Forestry Assistance 10.664 $ 24,000 7,040 7,040 Total federal fmancia1 assistance $ 32,891 $ $ 32,891 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. -105- I C' m m m ~ !!II f.i.j C ~ 'II iii .. c ~ c ~ ;.j c c c c c ,.- I ., --=- ~=--=-- =- - ------=; r j- I i-------=-=-- ~ I -I : I -I -I -I I -I I I I I I I I I I I I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M, MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA WILLIAM J. LAUER, 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 fmancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related 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. 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 fmancial 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. In planning and performing our audit of the general purpose fInancial statements of the City of Andover for the year ended December 31,1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose fInancial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 (continued) -106- cl ~ ~ * ~." * "" tl i .. ~ C1 I' C I pi!, I ~ C ~ . c c c c c c c ~ l. - -- -T--- 'I J 01 : I I I ~ I CI I cl ~ I ~I -I I il I 31 I JI JI 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 fmancial data consistent with the assertions of management in the general purpose fmancial 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. In addition, 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 fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defmed 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, 1995, and this report does not affect our reports thereon dated March 22, 1996. 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 March 22, 1996. 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. 111a.Lty I 111 trn:Ir I KMM.~, f?o,~ feD.) P. A . March 22, 1996 -107- I pIIt , ~I pIIt -..: I ~ ~ ~ ~ C t ~ 01 r . ~ ~ C t I t I C tl I ~. C r' l.. -~ .1 -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 WILLIAM J. LAUER, CPA ~MALLOV MONTAGUE KARNOWSKI RADOSEVICH &CO., P.A. INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose fmancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related to the fixed assets of the General Fixed Assets Account Group. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments, Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose fmancial statements are free of material misstatement. In planning and performing our audit for the year ended December 31, 1995, 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 fmancial 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 fmancial assistance prograrns. We have addressed policies and procedures relevant to our audit of the general purpose fmancial statements in a separate report dated March 22, 1996. (continued) CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUilDING 5353 WAYZATA BOULEVARD ~~~~~~~~~r:s61~~~:5~~~:A 55416 -108- TELEFAX: 612-545-0569 - I 1 1 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 prograrns 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. 1 1 I 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: I General Requirements I I o Political activity Civil rights Cash management Relocation assistance/real property acquisition Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements o o o o o I o o I I I Specific Requirements o Types of services Reporting o Claims for Advances and Reimbursements I 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. 1 During the year ended December 31, 1995, the City had no major federal fmancial assistance prograrns and expended 78.6% of its total federal fmancial assistance under the following nonmajor federal financial assistance prograrn: Cornmunity Development Block Grant (CDBG). I I I 1 (continued) -109- ~' ~ ~ ~ ~ m c c ~ ~ c ~ c c c c c c c c c --;~- -~~ 1 -I 1 I -I - 1 - I 1 1 1 1 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 fmancial assistance prograrns 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 fmancial 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 defmed 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 fmancial statements and of its compliance with requirements applicable to its federal fmancial assistance programs for the year ended December 31, 1995, and this report does not affect our reports thereon dated March 22, 1996. 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 March 22, 1996. 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. 111~ ' 111~~ ) K ~~) ~4~~ 4 (!.OO) ~.A 0 March 22, 1996 -110- c c c c c m m m I ~; W W ~ C C C C C r\ ~ t - I - 1 -I - 1 ~ 1 1 1 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 WILLIAM J. LAUER, CPA ~MALLOV MONTAGUE KARNOWSKI RADOSEVICH &CO.,RA. 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 fmancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related to the fIxed assets of the General Fixed Assets Account Group. We conducted our audit in accordance with generally accepted auditing standards and Government AuditinS 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, the objective of our audit of the general purpose fmancial statements 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 disclosed no instances of noncompliance that are required to be reported herein under Goverrunent Auditin~ Standards. 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. ?z1~ I ?1{nVI~ I Ka.NYlcw.4l4/ f?~ ~ C-O')~'~' March 22, 1996 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA55416 TELEPHONE: 612-545-0424 TElEFAX: 612-545-0569 -111- ....-I......:, c c c w m m I mi ~ ~ ~ ~ ~ .. C C C C C ~ C . I J I I ~ I -I 1 I I I 1 I I I I I I I 1 I PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M, MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A, RADOSEVICH, CPA WILLIAM J. LAUER, CPA ~MALLOV MONTAGUE KARNOWSKI RADOSEVICH &CO.,RA. INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUlREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose fmancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related 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 fmancial assistance prograrns, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1995: 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, COIl1Pliance 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 second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Andover had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the accompanying Schedule of Findings and Questioned Costs. 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. 111~ } /}1/{a-J~J 1< ~~J 1(~ i Q,o.(>.A. March 22, 1996 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -112- 01 C. o c c' c mi ~I ~I Will c' ~ .. ~ C C ~ ~ C C C I 1 - 1 I -I - 1 I 1 I I 1 1 - I I I I I I I PRINCIPALS KENNETH w, MALLOY, CPA THOMAS M, MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA WilLIAM J. LAUER, 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 fmancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related 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 fmancial 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, 1995. 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 carne 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. 1h~ J 1t1~r' K~o~, ~cL-~ f!c-)\=?A. March 22, 1996 CERTIFIED PUBLIC: ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545.0569 -113- ! C! C C C C C ~li ~ ~ " --I m: ~ c ~ C ~ ~ p,." ... C .. Ii. [ -' -I 1 - 1 -I I 1 I 1 I I I I I I I I 1 ~~ALLOV PRINCIPALS KENNETH W. MALLOY, CPA THOMAS M. MONTAGUE, CPA THOMAS A. KARNOWSKI, CPA PAUL A, RADOSEVICH, CPA WILLIAM J. LAUER, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH MINNESOTA STATE LAWS AND REGULA nONS City Council and Residents City of Andover Andover, Minnesota We have audited the general purpose fInancial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 22, 1996. Our report was qualified for a restriction on the scope of our audit resulting from the City not maintaining detailed records related to the fIxed assets of the General Fixed Assets Account Group. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal COIDJ)liance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes ~ 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal 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. Further, for the items not tested, based on our audit and the procedures referred to above, nothing carne 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. 'Jt( ~ I "Ultn4r J /{fUAI!C~/ ~ {. Co oJ P. A . March 22, 1996 I 1 CERTIFIED PUBLIC ACCOUNTANTS 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612-545-0424 TELEFAX: 612-545-0569 -114- 01 C C ~ ~ I, ml I' ~! mi ! ~i i I ~I I I ci ~ ~ c c c c c c w c ..- I 1 I I I I I I I I I I I I I I I I I CITY OF ANDOVER Schedule of Findings and Questioned Cost Year Ended December 31, 1995 This schedule summarizes fmdings and questioned costs relating to compliance with Minnesota Statutes and requirements applicable to federal programs. The auditor, Malloy, Montague, Kamowski, 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. Pro~ram/Law Federal Financial Assistance Programs - Administrative Requirements (Common Rule). 2. Findin~ "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. Type of Finding As the City has never maintained auditable fIxed asset records, this condition was present in previous years as well as the current year. 4. Ouestioned Cost None. CORRECTNE 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 The City has made the decision to develop and maintain detailed fIxed asset records on a Citywide basis. This plan will be implemented beginning in 1996. The City already maintains adequate records for insurance and capital improvement planning purposes, and will continue to do so. 3. Official Responsible for Ensuring CAP Not applicable. 4. Planned Com.vletion Date for CAP Not applicable. 5. Plan to Monitor Com.vletion of CAP Not applicable. -115- - - ~ --'--'-- --~ m: m ~ ~ ~ c ~ ~ c c c c c c c c 01 c: ~I! ~II ---=1;:-