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Home My WebLink About1996 CAFR I I -I I I I - I I I - I - I I I I I - I I I I CITY OF ANDOVER, MINNESOTA ANOKA COUNTY AUDITED FINANCIAL STATEMENTS As of December 31, 1996 i ~--" c c c c c c c c c c c c c c m c m c c -----~:-~ -~I I I I I I I I I I -I -I -I I I I I I I I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS ORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . INDEPENDENT AUDITORS' REPORT ......... . . . . . . . . . . . . . . . . . . . . . . . . . . GENERAL PURPOSE FINANCIAL STATEMENTS - Combined Balance Sheet - All Fund Types and Account Groups. . . . . . . . . . . . . . Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds ........ Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General, Special Revenue and Debt Service Fund Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types ................................. Combined Statement of Cash Flows - All Proprietary Fund Types ............ Notes to the Financial Statements ...................................... COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - General Fund - Comparative Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Revenues, Expenditures and Changes in Fund Balance. ....... Special Revenue Funds - Combining Balance Sheet ......................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balance .................................................. Statements of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Forestry Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LRRWMOFund ................................................ DrainageandMappingFund ....................................... EDA General Fund .............................................. Trail and Transportation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Septic Disposal Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Andover Days Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~. . . . . . . . Capital Equipment Reserve Fund ................................... Debt Service Funds - Combining Balance Sheet ......................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Projects Funds - Combining Balance Sheet ......................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~i1 I 2 4 5 6 7 8 9 43 44 53 54 55 56 57 58 59 60 61 62 63 64 65 66 w m w w ~ w c c c w c c c c c c c c c -- -- --" - -- - -- --- -~.- j -- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - (Continued) Enterprise Funds - Combining Balance Sheet ......................................... 67 Combining Statement of Revenues, Expenses and Changes in Retained Earnings .............................................. 68 Combining Statement of Cash Flows ................................ 69 Comparative Balance Sheet - Water Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Statement of Revenues, Expenses and Changes in Retained Earnings- Water Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Comparative Balance Sheet - Sewer Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Statement of Revenues, Expenses and Changes in Retained Earnings- Sewer Fund ................................................... 73 Internal Service Fund - Comparative Balance Sheet - Central Equipment Maintenance Fund. . . . . . . . 74 Statement of Revenues, Expenses and Changes in Retained Earnings- Central Equipment Maintenance Fund .............................. 75 Statement of Cash Flows - Central Equipment Maintenance Fund. . . . . . . . . . 76 Trust and Agency Funds - Combining Balance Sheet ......................................... 77 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Expendable Trust Funds ................................. 78 Combining Statement of Changes in Assets and Liabilities - Agency Funds . . 79 General Fixed Assets Account Group - Statement of Changes in General Fixed Assets. . . . . . . . . . . . . . . . . . . . . . . . . 80 General Long-Term Debt Account Group - Statement of General Long-Term Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 SUPPLEMENTARY INFORMATION - Schedule of Tax Capacity Rates and Levies .............................. 82 Schedule of Sources and Uses of Public Funds for Andover Tax Increment Financing Development District I-I ................................... 83 Schedule of Sources and Uses of Public Funds for Andover Tax Increment Financing Development District 1-2 ................................... 84 STATISTICAL INFORMATION - General Fund Revenue by Source ...................................... 85 General Fund Expenditures by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Tax Levies and Collections ........................................... 87 FEDERAL PROGRAMS AND COMPLIANCE WITH MINNESOTA STATUTES - Schedule of Federal Financial Assistance ................................ 88 - - - - - ~ ~ - ~-,,- I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 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 I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS (Continued) FEDERAL PROGRAMS AND COMPLIANCE WITH MINNESOTA STATUTES- (Continued) Report on the Internal Control Structure Based on an Audit of the General Purpose Financial Statements Performed in Accordance with Government Auditing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Single Audit Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Single Audit Report on Compliance with the General Requirements Applicable to Federal Financial Assistance Programs. . . . . . . . . . . . . . . . . . . . . . Single Audit Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions .............. Report on Compliance Based on an Audit of the General Purpose Financial Statements Performed in Accordance with Government Auditing Standards and Minnesota Statutes ............................................. Findings on Compliance with Minnesota Statutes ......................... '"' 89 91 95 97 99 101 ~ ~ ~ ~ c c ~ ~ ~ ~ ~ C m .. ~ ~ ~ /!'II ~ ~ ~ ~ ~ ~ -, C--I- - I I I I I I I I I I I -I I I I I I -I I Elected Officials lE. McKelvey Bonnie Dehn John Kunza Mike Knight Ken Orttel Ap!,ointed Officials Richard Fursman Jean McGann Shirley Clinton Victoria V olk i .. CITY OF ANDOVER, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 1996 Position Mayor Councilmember Councilmember Councilmember Councilmember City Administrator Finance Director Treasurer Clerk Year Term of Office Expires 1998 1998 1998 2000 2000 '- I c c ~ ~ ~ ~ C'" ' , , ~ c ~ ~ ~.'. ~ ~ ~ c. ~ ~ ~ ~ ~ w - - -- - ~~- I -- - I I I I I I I I I I I I -I I I I I I I ~ Kern, DeWenter, Viere, Ltd. Certified Public Accountants Alvin M. Kern Duane N. DeWenter Loren M. Viere Gerald A. Stover Keith W. Julson Dwayne B. Dockendorf David H. Hinnenkamp Christopher P. Shorba INDEPENDENT AUDITORS' REPORT April 29, 1997 Honorable Mayor and City Council 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, 1996, 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 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Because the City does not maintain adequate historical cost fixed asset accounting records, it was not practicable to extend our auditing procedures to enable us to express, and we do not express, an opinion on the balance sheet of the general fixed asset account group as of December 31, 1996. In our opinion, except for the effect of such adjustments, if any, that might have been determined to be necessary had we audited the General Fixed Asset Account Group, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe City of Andover, Minnesota, as of December 31,1996, and the results ofits operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. 2 220 Park Avenue South Po. Box 1304 St. Cloud, MN 56302 320-251-7010 FAX 320-251-1784 ". - ----- - - ---- I ~-- I rl ~ ~ c ~ c ~ ~ ~ ~ ~ ~ .. ~ ~ ~. ~ c c w ~ ~ c ~ ~ ~ ~ I I I -I I I -I I I - I I I I I I I -I I I City of Andover April 29, 1997 Page 2 In accordance with Government Auditing Standards, we have also issued a report dated April 29, 1997 on our consideration ofthe City's internal control structure and a report dated April 29, 1997 on the City's compliance with laws and regulations. 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 financial statements and supplementary information listed in the table of contents, including the Schedule of Federal Financial Assistance, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements ofthe City of Andover, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented 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. ~~/~ ~ rA4lJ KERN, DEWENTER, VIERE, LTD. 3 -':. CITY OF ANDOVER, MINNESOTA ~ COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31,1996 ~ Governmental Fund Types ~ Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Projects Assets: ~ Cash and Investments (Including Cash Equivalents) $ 1,322,913 $ 760,785 $ 9,219,376 $ 5,407,468 Cash with Trustee 0 0 0 0 TaxesReceivable - ~ Delinquent 38,995 328 9,872 0 Special Assessments Receivable - Deferred 48 0 4,200,084 5,070,244 Delinquent 353 0 16,990 33,185 ~ AccountslLoans Receivable 50,274 1,615 0 154,315 ' ' Interest Receivable 24,634 22,328 243,051 264,952 Due from Other Funds 0 0 0 0 Due from Other Governmental Units 86,748 140 15,189 32,672 ~ Inventory 37,728 0 0 0 ' . Prepaid Items 34,097 0 0 2,175 Property, Plant and Equipment - Net 0 0 0 0 ~ Other Debits: Amount Available in Debt Service Fund 0 0 0 0 Amount to be Provided for Retirement of General Long-Term Debt 0 0 0 0 ~ TOTAL ASSETS AND OTHER DEBITS $ 1.595.790 $ 785.196 $ 13.704.562 $ 10.965.011 LIABILITIES, EQUITY AND OTHER CREDITS ~ Liabilities: Accounts Payable $ 145,992 $ 945 $ 1,054 $ 579,193 Accrued Items 54,749 1,062 0 0 Contracts Payable 75,060 0 0 339.920 : Due to Other Funds 0 0 0 0 Due to Other Governmental Units 961 0 0 0 Deposits Payable 0 0 0 0 Due to Employees 0 0 0 0 ~ Deferred Revenue 39,396 182,499 4,226,946 5,270,839 Bonds and Certificates Payable 0 0 0 0 Loans Payable 0 0 0 0 Total Liabilities 316,158 184,506 4,228,000 6,189,952 ~ Equity and Other Credits: Investment in General Fixed Assets 0 0 0 0 Contributed Capital 0 0 0 0 ~ Retained Earnings - Reserved 0 0 0 0 Unreserved 0 0 0 0 Fund Balance (Deficit) - ~ Reserved 0 0 9,584,862 0 Unreserved - Designated 887.453 498,746 0 8,515,667 Undesignated 392,179 101,944 (108,300) (3,740.608) m Total Equity and Other Credits 1,279,632 600,690 9,476,562 4,775,059 TOTAL LIABILmES, EQUITY AND OTHER CREDITS $ 1.595.790 $ 785.196 $ 13.704.562 $ 10.965.01 I ~ The notes to the financial statements are an integral part of this statement C ~ - ---------- --- ---- -- - - ,~, -I I I Proprietary Fiduciary I Fund Types Fund Type Account Groups General General Totals Internal Tmstand Fixed Long-Term (Memorandum Only) Enterprise Service Agency Assets Debt 1996 1995 I $ 1,031,096 $ (6,779) $ 502,358 $ 0 $ 0 $ 18,237,217 $ 18,537,200 0 0 192,126 192,126 93,130 c I 0 0 0 0 0 49,195 50.827 8,462 0 0 0 0 9,278,838 6,356,233 I 5,253 0 0 0 0 55,781 87,355 601,096 893 17,520 0 0 825,713 593,548 29,795 0 4,246 0 0 589,006 438,002 0 0 0 0 0 0 20,000 I 15,777 0 0 0 0 150,526 181,543 11,729 19,661 0 0 0 69,118 72,332 48,747 0 562 0 0 85,581 92,728 20,677,948 0 0 10,538,020 0 31,215,968 28.711,952 I 0 0 0 0 9,476,562 9,476,562 7,848,274 I 0 0 0 0 17,185,587 17,185,587 18,575,392 $ 22,429.903 $ 13.775 $ 716.812 $ 10.538.020 $ 26.662.149 $ 87,411.218 $ 81.658.516 - I $ 20,416 $ 13,915 $ 6,824 $ 0 $ 157,160 $ 925,499 $ 447,978 20,157 1,623 120 0 123,989 201,700 143.773 ~ I 0 0 0 0 0 414,980 287,408 0 0 0 0 0 0 20,000 2,638 0 0 0 0 3,599 72,106 0 0 345,840 0 0 345,840 362,063 I 0 0 196,576 0 0 196,576 93,130 2.932 0 0 0 0 9,722,612 6,706.591 0 0 0 0 26,381.000 26,381,000 26,057.000 0 0 0 0 0 0 12,387 I 46,143 15,538 549,360 0 26,662.149 38,191,806 34,202,436 - 0 0 0 10,538,020 0 10,538,020 7,861,223 I 20,496.163 50,000 0 0 0 20,546,163 20,679.717 44,307 0 0 0 0 44,307 60,074 1,843,290 (51,763) 0 0 0 1,791,527 1,439,118 I 0 0 0 0 0 9,584,862 8,169,655 0 0 167,452 0 0 10,069,318 11,264,262 - I 0 0 0 0 0 (3,354,785) (2,017,969) 22,383,760 (1,763) 167,452 10,538,020 0 49,219,412 47,456,080 - - I $ 22,429.903 $ 13.775 $ 716.812 $ 10,538.020 $ 26,662.149 $ 87,411.218 $ 81.658.516 - I 4 I ----------- CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUNDS AND EXPENDABLE TRUST FUNDS Year Ended December 31,1996 General REVENUES: General Property Taxes and Tax Increments Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines Miscellaneous Total Revenues $ 2,180,470 o 390,371 857,645 554,430 57,125 61,818 4,101,859 EXPENDITURES: Current - General Government Public Safety Public Works Sanitation Parks and Recreation Recycling Economic Development Miscellaneous Capital Outlay Debt Service Total Expenditures 1,068,585 1,320,680 947,472 60,517 455,517 55,170 o 154,085 o o 4,062,026 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 39,833 OTHER FINANCING SOURCES (USES): Operating Transfers In Operating Transfers Out Bond Proceeds Proceeds from Sale of Fixed Assets Total Other Financing Sources (Uses) 71,000 (8,000) o 11,552 74,552 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 114,385 1,696,900 (531,653) $ 1,279,632 $ FUND BALANCE - January 1 Residual Equity Transfers In (Out) FUND BALANCE - December 31 The notes to the financial statements are an integral part of this statement. ~ w.l ~ ~ ~ Governmental Fund Types Special Debt Revenue Service $ 13,492 o o 3,487 26,940 o 133,555 177,474 o o 62,907 o 8,096 o 83,108 o 182,044 o 336,155 (158,681) 115,000 (53,730) o 22,230 83,500 (75,181) 109,144 566,727 600,690 ~,,- f $ ~ 1,171,631 ~ 2,515,585 ~ o 194,294 o ~ o 563,143 4,444,653 . W o o o o o o o o o 4,950,242 4,950,242 .. W ~ W C C (505,589) C C C C 581,441 (159) 1,207,079 o 1,788,361 1,282,772 7,848,274 ~ 345,516 '-i $ 9,476,562 c C' I I I Fiduciary Fund Type Totals I Capital Expendable (Memorandum Only) Projects Trust 1996 1995 I $ ,0 $ 0 $ 3,365,593 $ 2,930,636 919,096 0 3,434,681 4,252,117 0 0 390,371 410,212 I 711,488 0 1,766,914 1,024,313 0 0 581,370 549,606 0 0 57,125 46,152 I 1,081,063 36,669 1,876,248 1,177,044 2,711,647 36,669 11,472,302 10,390,080 I 0 0 1,068,585 932,460 0 0 1,320,680 1,060,210 I 0 0 1,010,379 730,870 0 0 60,517 34,795 0 0 463,613 329,416 I 0 0 55,170 58,260 0 0 83,108 22 0 12,853 166,938 114,969 I 7,142,778 0 7,324,822 7,826,360 0 0 4,950,242 9,126,040 7,142,778 12,853 16,504,054 20,213,402 I (4,431,131) 23,816 (5,031,752) (9,823,322) I 1,397,201 8,000 2,172,642 1,855,836 I (1,979,123) (71,000) (2,112,012) (1,880,206) , 2,578,634 0 3,785,713 9,798,966 0 0 33,782 164,925 1,996,712 (63,000) 3,880,125 9,939,521 1 I ~ I (2,434,419) (39,184) (1,151,627) 116,199 7,554,994 206,636 17,415,948 17,299,749 J I (345,516) 0 35,074 0 , I $ 4,775,059 $ 167 ,452 $ 16,299,395 $ 17,415,948 j " 5 ~ . I 1 J '. CITY OF ANDOVER, MINNESOTA C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND C CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES Year Ended December 31, 1996 C I, General Fund Special Revenue Funds ~ Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget t REVENUES: General Property Taxes and Tax Increments $ 2,200,924 $ 2,180,470 $ (20,454) $ 17,395 $ 13,492 $ (3,903) Special Assessments 0 0 0 0 0 0 Licenses and Permits 343,820 390,371 46,551 0 0 0 C Intergovernmental 759,484 857,645 98,161 3,470 3,487 17 Cbarges for Services 422,600 554,430 131,830 0 26,940 26,940 Fines 37,000 57,125 20,125 0 0 0 ~ Miscellaneous 49,300 61,818 12,518 79,800 133,555 53,755 Ii Total Revenues 3,813,128 4,101,859 288,731 100,665 177,474 76,809 EXPENDITURES: ~ Current - General Government 1,081,787 1,068,585 (13,202) 0 0 0 Public Safety 1,247,726 1,320,680 72,954 0 0 0 Public Works 977,803 947,472 (30,331) 16,965 62,907 45,942 ~ ' , Sanitation 94,239 60,517 (33,722) 0 0 0 Parks and Recreation 4 I 5.590 455,517 39,927 0 8,096 8,096 ~ Recycling 45.136 55,170 10,034 0 0 0 Economic Development 0 0 0 92,312 83,108 (9,204) Miscellaneous 129.847 154,085 24,238 0 0 0 Capital Outlay 0 0 0 0 182,044 182,044 ~ Debt Service 0 0 0 0 0 0 Total Expenditures 3,992,128 4,062,026 69,898 109,277 336,155 226,878 EXCESS OF REVENUES OVER (UNDER) ~ EXPENDITURES (179,000) 39,833 218,833 (8,612) (158,681) (150,069) OTHER FINANCING SOURCES (USES): ~ Operating Transfers In 71,000 71,000 0 0 11 5,000 115.000 Operating Transfers Out (8,000) (8,000) 0 0 (53,730) (53.730) Bond Proceeds 0 0 0 0 0 0 ~ Proceeds from Sale of Fixed Assets 0 11,552 11,552 0 22,230 22,230 Total Other Financing Sources (Uses) 63,000 74.552 11 ,552 0 83.500 83,500 EXCESS OF REVENUES AND OTHER C SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (116,000) 11 4,385 230,385 (8,612) (75,181) (66,569) FUND BALANCE - January I $ I .696.900 1,696,900 $ 0 $ 109.144 109.144 $ 0 C Residual Equity Transfers In (Out) (531,653) 566,727 C FUND BALANCE - December 31 $ 1,279.632 $ 600.690 The notes to the financial statements are an integral part of this statement. C C -- - - ---=-----,:;::;c-r~ ___u ---------- -------- I I - I Totals I Debt Service Funds (Memorandum Only) Over Over (Under) (Under) I Budget Actual Budget Budget Actual Budget $ 500,612 $ 1,171,631 $ 671,019 $ 2,718,931 $ 3,365,593 $ 646,662 1,230,800 2,515,585 1,284,785 1,230,800 2,515.585 1,284,785 I 0 0 0 343,820 390,371 46,551 197,397 194,294 (3,103) 960,351 1,055,426 95,075 0 0 0 422,600 581,370 158,770 I 0 0 0 37,000 57,125 20,125 249,630 563,143 313,513 378,730 758,516 379,786 2,178,439 4,444,653 2,266,214 6,092,232 8,723,986 2,631,754 - I 0 0 0 1,081,787 1,068,585 (13,202) I 0 0 0 1,247,726 1,320,680 72,954 0 0 0 994,768 1,010,379 15,611 0 0 0 94,239 60.517 (33,722) I 0 0 0 415,590 463,613 48,023 0 0 0 45,136 55.170 10,034 0 0 0 92,312 83.108 (9,204) 0 0 0 129,847 154,085 24,238 I 0 0 0 0 182,044 182,044 3,290,513 4,950,242 1,659,729 3,290,513 4,950,242 1,659,729 3,290,513 4,950,242 1,659,729 7,391,918 4,398,181 1,956.505 I (1,112,074) (505,589) 606,485 (1,299,686) (624,437) 675,249 ~ I - 37.630 581,441 543,811 108,630 767,441 658,811 0 (159) (159) (8,000) (61,889) (53,889) I 0 1,207,079 1,207,079 0 1,207,079 1,207,079 0 0 0 0 33,782 33,782 - 37,630 1,788,361 1,750,731 100,630 1,946.413 1,845,783 ~ I (1,074,444) 1,282,772 2,357,216 (1,199.056) 1,321,976 2,521,032 I $ 7.848.274 7,848,274 $ 0 $ 9.654.318 9,654,318 $ 0 - ~ - I 345,516 380,590 1 1 $ 9.476,562 $ 11,356.884 - . I 1 6 I , J i ] I 1 CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUNDS Year Ended December 31, 1996 With Comparative Totals for the Year Ended December 31, 1995 OPERATING REVENUES: User Charges Meters Permit Fees Penalties Other Total Operating Revenues Enterprise $ 1,459,256 38,803 12,686 19,408 131 1,530,284 OPERATING EXPENSES: Personal Services Materials and Supplies Other Services and Charges Disposal Charges Capital Outlay Depreciation Total Operating Expenses 284,465 42,186 146,470 483,132 o 583,141 1,539,394 (9,110) OPERATING (LOSS) NON-OPERATING REVENUES: Interest Earned (Charged) on Investments Other Total Non-Operating Revenues (Expenses) 69,502 216 69,718 INCOME BEFORE OPERATING TRANSFERS 60,608 Operating Transfer In Operating Transfer (Out) Total Operating Transfers 30,500 (122,630) (92,130) (31,522) NET (LOSS) Add: Depreciation Charged Against Contributed Capital 468,482 RETAINED EARNINGS - January 1 1,485,711 Residual Equity Transfers (Out) (35,074) RETAINED EARNINGS (DEFICIT)- December 31 $ 1,887.597 $ The notes to the financial statements are an integral part of this statement. Internal Service $ 205,880 $ o o o o 205,880 87,110 146,265 54,965 o 13,871 o 302,211 (96,331) (413) o (413) (96,744) 31,500 o 31,500 (65,244) o 13,481 o (51,763) $ c ~ Ii.i .. I. Totals (Memorandum Only) 1996 1995 1,665,136 38,803 12,686 19,408 131 1,736,164 371,575 188,451 201,435 483,132 13,871 583,141 1,841,605 (105,441) 69,089 216 69,305 (36,136) 62,000 (122,630) (60,630) (96,766) 468,482 1,499,192 (35,074) 1.835.834 $ I...... I $ [ 1,337,698 ~ 44,723 .. 13,600 18,304 ~ 21,736 ~ 1,436,061 ~ ~ ~ 305,130 136,069 161,199 423,121 38,657 476,525 1,540,701 (104,640) ~ 24,88~ C C ~ C C ~ C 7 0 C 24,883 (79,757) 62,000 (37,630) 24,370 (55,387) 387,461 1,167,118 o 1.499,192 I I CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES I Year Ended December 31, 1996 With Comparative Totals for the Year Ended December 31, 1995 I Totals Internal (Memorandum Only) I Enterprise Service 1996 1995 CASH FLOWS FROM OPERATING ACfIVITIES: Operating (Loss) $ (9,110) $ (96,331) $ (105,441) $ (104,640) I Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation 583,141 0 583,141 476,525 I Change in Current Assets and Liabilities: (Increase) Decrease in Special Assessments 19 0 19 (1,569) (Increase) in Accounts Receivable (233,478) (893) (234,371) (92,989) (Increase) Decrease in Interest Receivable (10,086) 456 (9,630) 0 I (Increase) Decrease in Due From Other Government Units (15,604) 0 (15,604) 208 (Increase) Decrease in Inventory (2,037) 8,761 6,724 (9,444) I (Increase) in Prepaid Items (1,222) 0 (1,222) (11,822) Increase (Decrease) in Accounts Payable 9,816 (537) 9,279 2,701 Increase (Decrease) in Accrued Items 8,429 529 8,958 (5,030) I Increase (Decrease) in Due to Other Governmental Units (41) 0 (41) 153 Increase (Decrease) in Deferred Revenue (19) 0 (19) 1,569 I Total Adjustments 338,918 8,316 347,234 360,302 Net Cash Provided (Used) by Operating Activities 329,808 (88,015) 241,793 255,662 I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: I Transfers From (To) Other Funds (127,204) 31,500 (95,704) 24,370 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACfIVITlES: ~ I Acquisition of Fixed Assets (75,432) 0 (75,432) (142,167) Other 216 0 216 0 Net Cash (Used) by Capital and Related - I Financing Activities (75,216) 0 (75,216) (142,167) CASH FLOWS FROM INVESTING ACfIVITIES: - I Interest Earned (Charged) on Investments 69,502 (413) 69,089 16,458 Net Increase (Decrease) in Cash and Cash Equivalents 196,890 (56,928) 139,962 154,323 I Cash and Cash Equivalents, Beginning of Year 834,206 50,149 884,355 730,032 I Cash and Cash Equivalents, End of Year $ 1,031,096 $ (6,779) $ 1 ,024,317 $ 884,355 The notes to the financial statements are an integral part of this statement. 8 I ----- 9 w w w w c c c c c c c c c c ~ c c c C I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Accounting Policies of the City The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. With respect to proprietary activities, the City has applied all applicable Governmental Accounting Statement Board (GASB) pronouncements as well as Financial Accounting Standards Board (F ASB) pronouncements and Accounting Principles Board (APB) Opinions issued on or before November 30, 1989 unless' those pronouncements conflict with or contradict GASB.pronouncements." In accordance,with GASB. Statement No. 20, the City has elected to apply only GASB pronouncements issued after November 30, 1989. B. Financial Reporting Entity In accordance with GASB Statement No. 14, The Financial Reporting Entity, the financial statements present the City and its component units. The City includes all funds, account groups, organizations, institutions, agencies, departments, and offices that are not legally separate from such, Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because ofthe significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit ifit appoints a voting majority of the Organization's governing body and it is able to impose its will on the Organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the Organization, or there is a potential for the Organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, ithas been determined the City has one blended component unit. Blended Component Unit - The Andover Economic Development Authority (EDA) is a legal entity separate from the City. Although legally separate, the EDA is reported as if it were part of the primary government because its governing body is substantively the same as the governing body of the primary government. ~-~- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated and accounted for in individual funds based upon the purposes for which they are to ' be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into eight generic fund types and three broad fund categories, described below. Governmental Funds The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. The City has eight Special Revenue Funds. Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. The City has seventeen Debt Service Funds. Capital Proiects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). The City has fifteen Capital ProjectsFunds. Proprietary Funds Entell'rise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that the periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City maintains Water and Sewer Enterprise Funds. 10 , ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) c c ~ ~ ~ ~ ~ C ~ ~,' . NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Accounting (Continued) Internal Service Funds - Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City. The City's Central Equipment Maintenance Fund is used to account for the City's Equipment Operations to all City departments on a cost reimbursement basis. Fiduciary Funds Expendable Trust Funds are used to account for assets held by the government in a trustee capacity. Both principal and earnings may be spent for the trust's intended purpose. The City maintains three trust funds for various purposes. Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. The City's Agency Fund is custodial in nature and does not involve measurement of results of operations. ~ .. D, Measurement Focus. Fixed Assets and Long-Term Liabilities 11 ~ /!'II, ~ ~ ~ ~ ~ ~ ~ ~ ~ The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of available spendable resources. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets--which are certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems--are not capitalized by the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at their historical cost or estimated historical cost if actual cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. --rCT I I I I I I I I I I I I I I I -I I -I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Measurement Focus. Fixed Assets and Long-Term Liabilities (Continued) Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Because oftheir spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. All proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with the fund's activity are included on the balance sheet. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against operations, Accumulated depreciation is reported on the proprietary fund balance sheet. Depreciation has been provided over the assets' estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings and Improvements Equipment 5-50 Years 5-20 Years E. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the [mancial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting, in which revenues are recognized when they become measurable and available as net current assets. 12 !!~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) ~ ~ ~ ~ ~ ~ ~ NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Basis of Accounting (Continued) The City considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Major revenues that are susceptible to accrual include property taxes, intergovernmental revenues, charges for services, and interest on investments. Major revenues that are not susceptible to accrual include licenses and permits, fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. ~ Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general fund, special revenue funds, and debt service funds and a separate budget report is issued at the beginning of each year. ~ ~ * ~ ~ C ~ ... C W Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liabilities are incurred. Exceptions to this rule include sick pay and principal and interest on general long-term debt, which are recognized when due. All proprietary funds are accounted for using the accrual basis of accounting; revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility service receivables are recorded at year end. The City reports deferred revenue on the combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, or when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent years, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and the revenue is recognized. F. Budgetary Accounting Budgeted amounts are as originally adopted or as amended by the City Council. Such amendments were not material. Encumbrances are not used by the City. Budgeted expenditure appropriations lapse at year end. M'\ .. ~ .. 13 ~ ~ m ----- -~I - I -I I -I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Budgetary Accounting (Continued) The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through City Council action. 4. Expenditures may legally exceed budgeted appropriations at the fund level through City Council action. Also, the City Council may authorize transfers of budgeted amounts between departments within any fund. 5. Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and debt service funds. Budgetary control for capital projects funds is accomplished through the use ofproject controls. 6. The legal level of budgetary control is at the department level for the General Fund and at the fund level for the special revenue and debt service funds. Also inherent in this controlling function is the management philosophy that the existence of a particular item or appropriation in the approved budget does not automatically mean that it will be spent. The budget process has flexibility in that, where need has been properly demonstrated, an adjustment can be made within the department budget by the City Administrator or between departments by the City Council. G. Encumbrances Encumbrances outstanding at year-end expire and outstanding purchase orders are cancelled and not reported in the financial statements. 14 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1996 (Continued) ~ ~ ~ ~ 15 ~ '~ ~ ~ ~ ~ * ~ C ~ ~ ~ ~ C C ~ ~ NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Cash and Investments (Including Cash Equivalents) (See Note 3) Cash balances from all funds are combined and invested to the extent available in authorized investments. Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are carried at cost which approximates market. Any premiums or discounts are ~ amortized over the maturity of the investment. Investments for Deferred Compensation Plans titled "Cash with Trustee" are stated at market value. For purposes of the Statement of Cash Flows of proprietary fund types, cash equivalents are defined as short-term, highly liquid investments that are both: a. readily convertible to known amounts of cash, or b. so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City's policy considers cash equivalents to be those that meet the above criteria and have original maturities ofthree months or less. I. Taxes Receivable Delinquent taxes receivable represent the past six years of uncollected tax levies. J. 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). K. Inventories The inventories ofthe 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. ---~----,-::~ I I I I I I 1 I -I I I I I 1 -I I ~ 1 I "I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Deferred Revenue Deferred revenue represents delinquent taxes, deferred and delinquent assessments, loans receivable and other unearned grants in all funds. This revenue is deferred until it is measurable and available as net current assets. M. 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 of200 hours as of the anniversary date of the individual's employment with the City. In the governmental fund types, the liability for vacation pay is recognized in the General Fund to the extent it is expected to be paid from expendable available financial resources. The remaining 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 percent 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. N. Arbitrage Rebate Liability Arbitrage rebate calculations were performed as of December 31, 1996 on all bond issues that are subject to rebate requirements, Total estimated arbitrage rebate liabilities of$ 4,444 are recorded in the Debt Service Special Assessment Funds under Accounts Payable. O. Fund Equity Fund equity is divided into sections as follows: Retained earnings of enterprise funds are subdivided as follows: 16 .. CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) ~ ~ ~ ~ t ~ ~ ~ ~ ~ w. ~ ~ C W ~ ~ ~ NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Fund Equity (Continued) Reserved accounts represent those portions of fund equity not appropriable for expenditure or legally separated for a future use. The unreserved, undesignated account is the portion of fund balance which is available for budgeting and expending in future periods. Fund balance accounts are subdivided as follows: Reserved accounts represent those portions of fund equity not appropriable for expenditure or legally separated for a future use. The unreserved, undesignated account is the portion of fund balance which is available for budgeting and expending in future periods. P. Revenues. Expenditures and Expenses 1. Revenues Property taxes are recognized as revenue when measurable and available. Intergovernmental revenues are reported under the legal and contractual requirements of the individual programs. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until then. Investment earnings are recorded when earned because they are measurable and available. 2. Property Tax Collection Calendar The City levies its property tax for the subsequent year during the Fall and is certified to Anoka County. The property tax is recorded as revenue when it becomes measurable and available. Anoka County is the collecting agency for the levy and remits the collections to the City three times a year. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. ~ ~ 17 m .. ~ ~ j. ~~ I I I I I I I I I -I I -I I 1 I I 1 I -I -I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P. Revenues. Expenditures and Expenses (Continued) 2. Property Tax Collection Calendar (Continued) December 28 is the last day the City can certifY a tax levy to the County Auditor for collection the following year. The County Auditor makes up the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor turns over a list oftaxes to be collected on each parcel of property to the County Treasurer in January of each year. The County Treasurer collects all taxes and is required to mail copies of all personal property tax statements by April 15 , and copies of all real estate tax statements by April 15, of each year. Property owners are required to pay one-half oftheir real estate taxes due by May 15 and the balance by October 15. If taxes due May 15 are not paid on time, a penalty of 3 % is assessed on homesteaded property and 7% on non-homesteaded property. An additional 1 % penalty is added each month the taxes remain unpaid, until October 15. Ifthe taxes due May 15 are not paid by October 15, a 2% penalty per month is added to homesteaded property and 4% per month to non-homesteaded property until January 1. If the taxes are not paid by January 1, further penalties are added. Penalties and interest apply to both taxes and special assessments. There are some exceptions to the above penalties, but they are not material. Within 30 days after the tax settlement date, the County Treasurer is required to pay 70% ofthe estimated collections oftaxes and special assessments to the City Treasurer. The County Treasurer must pay the balance to the City Treasurer within 60 days after settlement, provided that after 45 days interest accrues at the rate of 8% per annum. 18 ,. ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) ~ Ii. Proprietary fund types recognize expenses when they are incurred. c ~ [ ~ /!'II ~ C ~ : ~ ~ ~ ~ C NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P. Revenues. Expenditures and Expenses (Continued) 3. Expenditures Expenditure recognition for governmental fund types includes only amounts represented by current liabilities. Since noncurrent liabilities do not affect net current assets, they are not recognized as governmental fund expenditures or fund liabilities. They are reported as liabilities in the General Long-Term Debt Account Group. 4. Expenses Q. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as a reduction of expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. R. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Comparative data have been adjusted to reflect reclassifications of accounts for comparative purposes. S. Total Columns on General PUI:pose Statements . I' , ill Total columns on the general purpose financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. ~ ~r ill 19 ~ -c--- -r-::c-r- - I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY A. Fund Deficits The following funds had deficit fund balances at December 31, 1996: Special Revenue Funds - Forestry Fund Debt Service Funds - G.O. Improvement Bonds of 1985B G.O. Improvement Bonds of 1989 Capital Projects Funds - Improvement Bonds of 1993A Project Improvement Bonds of 1 994D Project Improvement Bonds of 1995D Project Unfinanced Projects City Buildings State Aid Revolving Projects Public Works Project $ 1,362 17,776 90,524 71 799,779 132,952 2,130,046 421,936 255,826 69 These deficits will be eliminated by transfers from other funds, collections of property tax levies or proceeds from bond issues. B. Expenditures in Excess of Appropriations Expenditures exceeded appropriations in the following funds for the year ended December 31,1996: Appropriations Expenditures General Fund Special Revenue Funds: Forestry Drainage and Mapping Andover Days Capital Equipment Reserve $ 3,992,128 o o o o .. $ 4,062,026 30,211 16,583 8,096 182,044 20 21 [ [ [ ~ t ~ ~ ~ [ t [ [ ~ ~ ~ ~ ~ ~ c ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Assets 1. Cash and Investments (Including Cash Equivalents) Cash balances ofthe City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota State Statutes. Each fund's portion ofthis pool (or pools) is displayed on the financial statements as "cash and investments (including cash equivalents). For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized below: a. Deposits - Minnesota Statutes require that all deposits with financial institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC insurance (140% if collateralized with notes secured by first mortgages). Category 1 includes deposits covered by Federal Depository Insurance (FDIC) and those deposits collateralized with securities held by the City or by its agent in the City's name. Category 1 --L-L Bank Balance Carrying Amount Bank Accounts $ 518.512 $ 0 $ 0 $ 518.512 $ 724.209 b. Investments - Minnesota State Statutes authorize the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the forementioned securities, obligations ofthe State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270 days. Investments held by the City at year end classified as to credit risk are as follows: Category 1 - Insured or registered, or securities held by the City's agent in the City's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. I- "- -I I I I I I I I I - I I I I I I I I I :1 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 1. Cash and Investments (Including Cash Equivalents) (Continued) b. Investments - (Continued) Category3 ,-Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. Category Carrying Market 1 -L 3 Amount Value Negotiable Certificates of Deposit $ 609,414 $ 0 $ 0 $ 609,414 $ 631,800 State and Local Government Securities 767,721 0 0 767,721 776,726 U.S. Government Securities 7,645,642 0 2,742,214 10,387,856 10,769,813 Commercial Paper 1,000,000 0 1,000,673 2,000,673 2,003,091 Corporate Bonds 0 --.U 989.646 989.646 972.403 Total Investments $ 10.022.777 $ {) $ 4.732.533 14,755,310 15,153,883 Total Deposits (Note 3 A.1.a.) Minnesota Municipal Investment Pool Open End Mutual Funds Petty Cash 724,209 1,651,676 1,105,372 650 724,209 1,651,676 1,105,372 650 Total Cash and Investments (Including Cash Equivalents) $ 18.237.217 $ 18.635.740 $ 192.126 $ 192.126 Cash with Trustee (Note 3 A.2.) 22 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) ~ t [ ~ ~ ~ [ ~ .. [ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 2. Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights, are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City, subject only to the rights of the claims of the City's general creditors. Participants' rights under the plan are equal to the fair market value of the deferred account for each participant. The related assets and liabilities are recorded in the Agency Fund - ICMA deferred compensation plan and PEBSCO deferred compensation plan. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but the City 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 claim of general creditors in the future. ,. ~ 23 ~ ~ ~ ~ W.i ~ ~ ~ ~ ~ The plan is managed by trustees other than the City. 3. 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 30 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. -- --- ~~----.-~ I I I I ,I I I I -I I I ~ I 1 1 - I ~I 1 I JI CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 3. Flexible Benefit Plan (Continued) All assets ofthe 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 financial statements as an Expendable Trust Fund. All plan property and income attributable to that property is solely the property of the City, subject to the claims ofthe City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the eligible health care and dependent care expenses incurred by the participants. The City believes that it is unlikely that it will use the assets to satisfY the claims of general creditors in the future. 4. Fixed Assets A summary of changes in the General Fixed Assets Account Group follows: Balance Balance 1-1-96 Additions Disposals 12-31-96 Land $ 2,473,416 $ 1,475,419 $ 0 $ 3,948,835 Buildings 1,811,622 0 0 1,811,622 Improvements Other than Buildings 199,253 674,828 0 874,081 Machinery and Automotive Equipment 2,788,065 533,206 10,565 3,310,706 Furniture and Equipment 588.867 105.439 101.530 592.776 Total General Fixed Assets $ 7.861.223 $ 2.788.892 $ 112.095 $ 10.538.020 24 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) C: CI NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) Ci A summary of proprietary fund type fixed assets at December 31, 1996 is as follows: C t ~ C [ ~ A. Assets (Continued) 4. Fixed Assets (Continued) Water Sewer Total Furniture and Equipment $ 574,072 $ 126,430 $ 700,502 Machinery 898,814 0 898,814 Collection and Distribution System 9,861,744 13,897,294 23,759,038 Accumulated Depreciation (1.896.054) (2.784.352) (4.680.406) Net Fixed Assets $ 9.438.576 $ 11.239.372 $ 20.677.948 5. Loans Receivable As part of a development agreement, the City entered into with a private developer in May, 1989. The City received a promissory note for $ 243,520 from the developer. The note is to reimburse the City for the fiscal disparities' contributions the City lost due to the establishment of a tax increment financing district for the development project. The note bears an interest rate of5.50% and calls for 180 equal monthly payments to be made to the City through August, 2003. At December 31, 1996, the remaining principal due of $ 147,781 is offset by deferred revenue as it is not available to finance current activities. ~ IiIj All full-time and certain part-time employees of the City of Andover are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (pERF) 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 members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters 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, 1996, was $ 1,301,577 and $ 44,314, respectively; the City's total payroll was $ 1,345,891. ~ ~ ~ ~ ~ B. Liabilities 1. Defined Benefit Pension Plans - Statewide a. Plan Description ~ iIiI ~ " ..- '" ~ 25 c -~,,--I- ]~ !I :~ :1 II il I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) a. Plan Description (Continued) PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.65 percent 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 leave 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. 26 -;.ij- C: CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) c: i !'II ~I NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) Ci B. Liabilities (Continued) CI 1. 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 the 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: t L [ c PERF (A blended rate for both the Basic and Coordinated Plans) PEPFF 4.30% 7.60% 4.60% 11.40% 9.60% 19.00% t ~ [ [ Statutory Rates Employees Employer Required Rates* * The recommended rates scheduled above represent the required rates for fiscal year 1996 contributions as reported in the July 1, 1995 actuarial valuation reports. Total contributions made by the City during the year ended December 31, 1996 were: Amounts Employees Employer Percentage of Covered Payroll Employees Employer r t-. Totals $ 55,057 3.368 $ 58.425 $ 58,310 5.052 $ 63.362 4.23% 7.60% 4.48% 11.40% [ PERF PEPFF ~ .. 27 ~ ~ - -- ------::--~ -rc-r- I I I I I 1 1 -I I 1 I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) b. Contributions Required and Contributions Made (Continued) The City's contribution for the year ended December 31, 1996 to the PERF ' represented .04 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended December 31, 1996, represented .01 percent of total contributions required of all participating entities. c. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects ofprojected 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 ofthe actuarial funding method used to determine required contributions, which is discussed in Note B. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1996, are shown below: PERF PEPFF in Thousands Total pension benefit obligations Net assets available for benefits, at cost (Market Values for PERF = $ 5,954,697; PEPFF = $ 1,713,687) $ 6,608,646 $ 1,243,429 5.702.248 1.592.671 Unfunded (assets in excess of) pension benefit obligation $ 906.398 $ (349.242) 28 29 c ~ ~ ~ ~ ~ c c c c ~ .. ~ ~ c ~ ~ w ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) c. Funding Status and Progress (Continued) 1. Pension Benefit Obligation (Continued) The pension benefit obligation was determined as part of an actuarial valuation at July 1, 1996. 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 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement; (b) projected salary increases taken from a select and ultimate table; (c) payroll growth at 6 percent per year, consisting of 5 percent for inflation and 1 percent ' due to growth in group size; (d) post-retirement benefit increases that are accounted for by the 5 percent 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. Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of return on the investment of present and future assets of8.5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually following retirement; (b) projected salary increases of 6.5 percent per year, compounded annually, attributable to the effects of inflation; (c) post- retirement increases that are accounted for by the 5 percent 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. ~ WI -=--- I-----" I 1 I I I I 1 I 1 1 I I 1 I 1 I 1 I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) c. Funding Status and Progress (Continued) 2. Changes in Actuarial Assumptions Since the July 1, 1995 actuarial valuation, there were no changes in actuarial assumptions of the PERF and the PEPFF 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) retirees are living longer; (b) the expected active member death rate is declining; (c) the trend toward earlier retirement continues; and (d) the pattern of salary increases varies substantially by ages, with a strong merit and seniority component evident at the younger ages. Based on these results, 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 1997, will significantly impact the July 1,1997 actuarial valuation ofthe PEPFF. 3. Changes in Benefit Provisions The 1996 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 Component Unit Financial Report for the year ended June 30,1996. 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, 1996, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. 30 i -" CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association a. Plan Description Members of the City's volunteer fire department are members of the Andover Fire Fighters' Relief Association. The Association is a single-employer defined contribution plan that was established in 1979 and operates under the provisions of Minnesota Statutes S 69 and 424A, as amended. It is governed by a Board consisting of six officers and trustees elected by the members of the Association for three-year terms. The City Mayor, City Clerk, and Fire Chief are ex-officio members of the Board of Trustees. The payroll for City employees who are members of the Association for the year ended December 31, 1996 was $ 312,944. The City's total payroll was $ 1,345,891. 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 firefighter 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 ofthe 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. ------ l----...;~ 1 ~ c ~ ~ ~ '~ ~ ~ ~ .. ~ ~, ~ ~ ~ ~ ~ ~, ~ ~ ~ ~ ~ 31 ~ ~ ~ 1 I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association (Continued) b. Pension Benefits (Continued) 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 ofthe Special Pension Fund, not to exceed 5% per year. An active member of the Association who becomes disabled to the extent that a ' physician shall certify that such disability will permanently prevent the member from performing his duties in the Andover Fire Department, is entitled to a disability pension equal to the balance in the member's account after 100 days of disability. If a member who has received such a disability pension should subsequently recover and return to active duty in the Andover Fire Department, any amount paid to him as a disability pension shall be deducted from his service pension accrued at the time of such disability. Upon the death of any member of the Association who is in good standing at the time of death, the Association shall pay the member's spouse, children, or estate the balance ofthe 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 ofthe 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. 32 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1996 (Continued) ~ ~ C ~ ~ ~ ~ C ~ ~,', ~ ~ ~ ~ C ~ C ~ ~ ~ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association (Continued) c. Contributions Required and Contributions Made (Continued) In 1996, the City contributed $ 83,350 to the Association, consisting of $ 54,542 state aid and $ 28,808 fulfilling the City's $ 750 per member contribution obligation for the year ended December 31, 1996. The City's contribution represents 9.2% of covered payroll. 3. Deferred Revenues Deferred revenues at December 31, 1996 are sununarized below: Special Debt Capital General Revenue Service Proiects Enterorise Total Taxes Receivable - Delinquent $ 38,995 $ 328 $ 9,872 $ 0 $ 0 $ 49,195 Speciali\ssessnlents Receivable - Deferred 48 0 4,200,084 5,070,244 0 9,270,376 Delinquent 353 0 16,990 33,185 0 50,528 Loans Receivable 0 0 0 147,781 0 147,781 Other - Deposits and Unearned Grants ~ 182.171 0 19.629 2.932 204 732 Total $ 39.396 $ 182.499 $ 4.226.946 $ 5.270.839 $ 2.932 $ 9.722.612 4. Long-Term Debt The annual requirements to amortize all bonded debt outstanding as of December 31, 1996, including interest payments of$ 7,837,900 are: General Certificates Obligation Year Ending General of Special Tax Decenlber 31 Obligation Indebtedness i\sseSSnlents Increnlent Total 1997 $ 320,625 $ 142,477 $ 6,282,207 $ 767,365 $ 7,512,674 1998 305,500 149,790 2,224,824 789,920 3,470,034 1999 290,063 192,687 2,081,638 797,165 3,361,553 2000 274,250 179,244 1,936,778 817,880 3,208,152 2001 258,125 0 1,748,454 826,495 2,833,074 2002-2006 0 0 3,919,523 4,043,616 7,963,139 2007-2011 0 0 0 4,333,854 4,333,854 2012 and Beyond 0 0 0 1.536420 1.536.420 Total $ 1.448.563 $ 664 198 $ 18.193.424 $ 13 912.715 $ 34.218 900 33 - T~-;-'- - 1 I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) The following is a summary oflong-term debt transactions of the City for the year ended December 31, 1996: 34 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) Bonds payable at December 31, 1996 are comprised of the following issues: Interest Rate Issue Date Maturity Date Special Assessment Bonds: G.O. Improvement Bonds of Series 1977 A 5.00% February 1, 1977 January 1, 2006 G.O. Improvement Bonds of 1978 5.25-6.00% November 1, 1978 February 1, 1999 G.O. Improvement Bonds of Series 1986A 5.00-7.90% July 1, 1986 August 1,2001 Refunding Bonds of Series 1986C 6.00-7.40% August 1, 1986 August 1,2002 G.O. Improvement Bonds of Series 1989A 6.10-6.80% July 1, 1989 August 1,2001 G.O. Improvement Bonds of Series 1993A 4.55% August 1, 1993 August 1,2003 G.O. Improvement Bonds of Series 1994C 5.05-5,75% October 1, 1994 February 1, 2006 Temporary Improvement Bonds of Series 1994D 4.60% October 1, 1994 October 1,1997 G.O. Improvement Bonds of 1995A 4.80-5.30% July 1, 1995 February 1, 2006 Refunding Bonds of Series 1995B 4.40-4.85% July 1, 1995 August 1, 2000 G.O. State-Aid Street Bonds of1988 5.60-6.80% August 1, 1988 August 1, 1998 G.O. Crossover Refunding Bond of 1996 4.15-4.50% June 1, 1996 August 1,2001 G.O. Improvement Bond of 1996 3.90-5.00% June 1, 1996 August 1, 2006 Total Special Assessment Bonds General Obligation Bonds: G.O. Fire Station Bond of 1991A 5.00-6.50% July 1, 1991 July 1,2001 I- ~- I ~ ~" ~ ~ ~ ~ ~ ~ ~ ~" ~ ~ ~ o ~ ~ ~ ~ L C C C I I I I I I I Authorized and Issued Retired Outstanding I $ 1,215,000 $ 635,000 $ 580,000 I 270,000 210,000 60,000 1,795,000 1,100,000 695,000 I 2,485,000 1,260,000 1,225,000 3,200,000 2,900,000 300,000 I 3,650,000 1,095,000 2,555,000 I 1,140,000 0 1,140,000 3,705,000 0 3,705,000 I 2,605,000 0 2,605,000 I 825,000 190,000 635,000 500,000 400,000 100,000 I 1,220,000 0 1,220,000 600.000 0 600.000 I 23,210,000 7,790,000 15,420,000 2,500,000 1,250,000 1,250,000 I I 35 I -. CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1996 (Continued) c c c c c c ~ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) Interest Rate Issue Date Maturity Date Tax Increment Bonds: 1993 G.O. Tax Increment Bonds, Series B $ 520,000 4.65% August 1, 1993 August 1, 2003 1994 G.O. Tax Increment Refunding Bonds, Series B $ 885,000 5.55-7.87% May 1, 1994 May 1,2004 1995 G.O. Tax Increment Bonds, Series D $ 6,055,000 4.50-5.60% October 1,1995 February 1, 2013 1996 G.O. Tax Increment Bonds of 1996 4.75-5.40% June 1, 1996 August 1,2012 Total Tax Increment Bonds Certificates of Indebtedness: 1992 Certificate of Indebtedness 4.25-5.75% August 1, 1992 August 1, 1997 1 994A Certificate of Indebtedness 3.55-4.25% March 1, 1994 March 1, 1999 1995C Certificate of Indebtedness 4.40-4.85% June 1, 1995 February 1, 2000 Total Certificates of Indebtedness Assessments on City Property 6.25-10.70% N/A 2001 Compensated Absences Payable N/A N/A N/A TOTAL . Ii :.' ill ~ C ~ C t ~ C t C C C - - --.- 1---0'---1 36 CITY OF ANDOVER NOTESTOTHEFINANC~STATEMENTS December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 5. Refunding Bonds On June 1, 1996, the City issued $ 1,220,000 General Obligation Crossover Refunding Bonds with an average interest rate of 4.45% to advance refund $ 1,200,000 outstanding 1989A General Obligation Improvement Bonds with an average interest rate of 6.45%. The net proceeds of$ 1,216,122 plus an additional $ 1,464 of Debt Service monies were used to purchase Government Securities in the amount of$ 1,201,900, to pay issuance costs and fees of$ 15,626 and to provide for a beginning balance in the escrow account in the amount of$ 60. The Government Securities were deposited into an irrevocable trust with an escrow agent to provide for debt service payments on the 1989 G.O, Improvement Bonds in years 1997 and thereafter. As a result, $ 1,200,000 of the 1989 G.O. Improvement Bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. 6. Conduit Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private- sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31,1996, the following revenue bonds were outstanding: Andover Limited Partnership Industrial Revenue Bonds, issued in 1996, totaling $ 5,730,000. ----ro=-I 37 ~ C C ~ ~ ~ C C C !!II ~ C C ~, ~ C C ~.'" ~ C C C t I 1 1 1 I I I I I I I I I I I I I I I CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS December 31, 1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Equity Fund equity balances are classified as follows to reflect the limitations and restrictions ofthe respective funds: 1. Investment in General Fixed Assets - Represents the City's equity in general fixed assets. 2. Fund Balance - Fund balances are classified as follows to reflect the limitations and restrictions of the respective funds. Funds Special Debt Capital Expendable General Revenue Service Projects Trust Total Umeserved: Designated - Capital Outlay $ 32,000 $ 498,746 $ 0 $ 0 $ 0 $ 530,746 Improvements 0 0 0 8,515,667 0 8,515,667 Working Capital 855,453 0 0 0 0 855,453 Trust Funds 0 0 0 0 167,452 167,452 Undesignated 392,179 101,944 (108,300) (3,740,608) 0 (3,354,785) Reserved - Debt Service 0 0 9.584.862 0 0 9.584.862 Total $ 1.279 632 $ 600.690 $ 9.476.562 $ 4.775.059 $ 167.452 $ 16.299395 Internal Enteq>rise Service Total Retained Earnings - Reserved for Repair and Maintenance $ 44,307 $ 0 $ 44,307 Unreserved - Undesignated 1.843.290 (51.763) 1. 791.527 Total $ 1.887.597 $(51.763) $ 1.835.834 38 39 ~,', ~ ~: ... ~ ~ ~ ~ ~ P"l ~ C C ~ ~ ~ c c ~ ~ C' , , , ' c ~ L t CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS December 31,1996 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Equity (Continued) Contributed Capital - Contributed capital in the enterprise funds represents fixed assets which were purchased by other funds and transferred to the enterprise funds. Changes in contributed capital for the year is as follows: Water Fund Sewer Fund Internal Service Fund Contributed Capital- January 1,1996 Add: 1996 Contributions Less: Depreciation $ 9,383,680 132,540 (194.584) $ 9.321.636 $ 11,246,037 202,388 (273.898) $ 11.174.527 $ 50,000 o o $ 50.000 Contributed Capital - December 31, 1996 NOTE 4 - SEGMENT INFORMATION The City maintains Water and Sewer Enterprise Funds. Segment information for the year ended December 31,1996 is as follows: Water Sewer Totals Operating Revenues $ 717,857 $ 812,427 $ 1,530,284 Operating Expenses 591,205 948,189 1,539,394 Depreciation Expense 290,076 293,065 583,141 Operating Income (Loss) 126,652 (135,762) (9,110) Operating Transfers In (Out) (105,040) 12,910 (92,130) -- -":Cj - II L.: II ~ I I I I - I I I I I - I ~ I - I I I I I - 1 ; - ;:~ CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS December 31, 1996 (Continued) NOTE 4 - SEGMENT INFORMATION (Continued) Water Sewer Totals Net Income (Loss) $ 62,958 $ (94,480) $ (31,522) Capital Contributed 132,540 202,388 334,928 Net Working Capital 1,015,098 690,714 1,705,812 Fixed Asset Purchases 57,007 18,425 75,432 Total Assets 10,476,983 11,952,920 22,429,903 Total Equity 10,453,674 11,930,086 22,383,760 NOTE 5 - TAX INCREMENT DISTRICTS The City of Andover is the administering authority for the following tax increment finance districts: 1. Name of District: Andover Redevelopment District 1-1 Type of District: Authorizing Law: Minnesota Statutes Section 472 Established: 1986 Duration of District: Through 2012 Original Net Tax Capacity: Current Net Tax Capacity: Captured Net Tax Capacity - Retained by City $ 28,525 237.823 $ 209.298 2. Name of District: Andover Redevelopment District 1-2 Type of District: Authorizing Law: Minnesota Statutes Section 472 Established: 1986 Duration of District: Through 2012 Original Net Tax Capacity: Current Net Tax Capacity: Captured Net Tax Capacity - Retained by City $ 59,887 573.926 $ 514.039 40 CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS December 31, 1996 (Continued) NOTE 5 - TAX INCREMENT DISTRICTS (Continued) Total District 1 Bonds Incurred $ 10,825,000 1.715.000 $ 9.110.000 Amounts Redeemed . Bonds Outstanding at December 31, 1996 NOTE 6 - RISK MANAGEMENT The City is exposed to various risks ofloss 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 ofloss, including employee health insurance. Settled claims resulting from these risk have not exceeded commercial insurance coverage in any of the past fiscal years. NOTE 7 - COMMITMENTS The City has several commitments outstanding at year end for various construction projects. They are summarized below: Expended Required Project Through Remaining Further Proiect Authorization 12-31-96 Commitment Financing City Hall and Commercial Park $ 641,233 $ 624,123 $ 17,110 None Crown Pointe 395,850 370,094 25,756 None City Hall 1,300,000 1,159,642 140,358 None Commercial Boulevard 1,415,988 1,321,532 94,456 None Shadowbrook 1,487,376 1,425,134 62,242 None Miscellaneous - Park Trails 105,358 103,339 2,019 None 41 H=----I ~ C- C-- ~ en r ~- ~.~ e- C"~ e- e- ~ 0- C- O- ~ ~ ~ I I I I I I I I I I 'I I I I I I I I I CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS December 31, 1996 (Continued) NOTE 7 - COMMITMENTS (Continued) The Federal and State program activities are subject to financial and compliance regulation. To the extent that any expenditures are disallowed, a liability to the respective Federal or State Agency could result. The City expects such amounts, if any, to be immaterial. NOTE 8 - SUBSEQUENT EVENT On March 18, 1997, the City approved the issuance of$ 3,120,000 of General Obligation Special Assessment Bonds to finance 1997 improvement projects. 42 c ~ w.J ~ ~ ~ ~, w.J ~ . COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS ~ ~ ~ ~ t ~ [ [ [ r1 iIII ~ II.J f!I1 ~ - --- ~.;- I I I I I I I I I I -I -I -I I I I I I I I CITY OF ANDOVER, MINNESOTA THE GENERAL FUND The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works and parks and recreation. Revenue is recorded by source; i.e., taxes, licenses and permits, fines and forfeits, service charges, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifi- cations and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. ~ CITY OF ANDOVER, MINNESOTA ~ COMPARATIVE BALANCE SHEET - GENERAL FUND ' ' December 31,1996 and 1995 ~ 1996 1995 ASSETS ~ Cash and Investments $ 1,322,913 $ 1,591,850 Taxes Receivable - Delinquent 38,995 41,122 ~ Special Assessments Receivable - Deferred 48 47 Delinquent 353 925 Accounts Receivable 50,274 60,056 ~ : ' Interest Receivable 24,634 21,005 Due From Other Funds 0 20,000 ~ Due From Other Governmental Units 86,748 77,356 Inventory 37,728 34,218 Prepaid Items 34,097 45,203 ~ TOTAL ASSETS $ 1,595,790 $ 1,891,782 liIJ ~ LIABILITIES AND FUND BALANCE ' , Liabilities: Accounts Payable $ 145,992 $ 67,550 ~ Accrued Items 54,749 15,810 Contracts Payable 75,060 0 Due to Other Governmental Units 961 69,427 ~ Deferred Revenue 39,396 42,095 I' Total Liabilities 316,158 194,882 Fund Balance: ~ ' , Unreserved - Designated for Working Capital 855,453 855,453 ~ Designated for Future Expenditures 32,000 166,853 Undesignated 392,179 674,594 Total Fund Balance 1,279,632 1,696,900 ~ TOTAL LIABILITIES AND FUND BALANCE $ 1,595,790 $ 1,891,782 ~ 1'1 iIIIJ ~ ' , ~ ~ ' , 43 ~ __._u 1=-,- I - ~ 1 - I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND I CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 I Over I (Under) Budget Actual Budget REVENUES: General Property Taxes $ 2,200,924 $ 2,180,470 $ (20,454) 1 and Tax Increments Licenses and Permits 343,820 390,371 46,551 Intergovernmental 759,484 857,645 98,161 I Charges for Services 422,600 554,430 131,830 Fines 37,000 57,125 20,125 Miscellaneous 49,300 61,818 12,518 I Total Revenues 3,813,128 4,101,859 288,731 EXPENDITURES: I Current - General Government 1,081,787 1,068,585 (13,202) Public Safety 1,247,726 1,320,680 72,954 I Public Works 977,803 947,472 (30,331) Sanitation 94,239 60,517 (33,722) - Parks and Recreation 415,590 455,517 39,927 1 Recycling 45,136 55,170 10,034 Miscellaneous 129,847 154,085 24,238 Total Expenditures 3,992,128 4,062,026 69,898 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (179,000) 39,833 218,833 I OTHER FINANCING SOURCES (USES): Operating Transfers In 71,000 71,000 0 1 Operating Transfers Out (8,000) (8,000) 0 Proceeds from Sale of Fixed Assets 0 11,552 11,552 Total Other Financing Sources (Uses) 63,000 74,552 11,552 I EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) 1 EXPENDITURES AND OTHER USES $ (116.000) 114,385 $ 230,385 FUND BALANCE - January 1 1,696,900 1 Residual Equity Transfer (Out) (531,653) I FUND BALANCE - December 31 $ 1,279.632 44 I , .> CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 (Continued) Budget Actual REVENUES: General Property Taxes $ 2,200,924 $ 2,180,470 Licenses and Permits 343,820 390,371 Intergovernmental Revenue - CDBG Grants COPS Grant Local Government Aid HACA and Other Tax Credits Street Maintenance Fire Department Aid Other Grants Total Intergovernmental Revenue 57,276 o 106,933 343,302 140,000 34,100 77,873 759,484 84,283 30,000 106,935 343,343 140,000 54,542 98,542 857,645 Charges for Services - General Govemment Street Lights Utility Funds Other Total Charges for Services 306,600 112,500 3,500 o 422,600 443,504 106,230 3,695 1,001 554,430 Fines 37,000 57,125 Miscellaneous - Donations Interest Refunds Other Total Miscellaneous o 33,000 12,000 4,300 49,300 1,000 52,653 7,165 1,000 61,818 Total Revenues 3,813,128 4,101,859 Over (Under) Budget ~ ~ ~ ~ m ~ ~ C $ (20,454) 46,551 27,007 30,000 2 41 o 20,442 20,669 98,161 ~ Mil c ~ ~ ~ C ~ 136,904 (6,270) 195 1,001 131,830 20,125 1,000 19,653 (4,835) (3,300) 12,518 ~ ill 288,731 ~ ,.. tj .. ~ 45 ~ ~r I I I I I 1 I I I 1 I 1 I I 1 I 1 -I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 (Continued) Over (Under) Budget Actual Budget EXPENDITURES: General Govemment - Mayor and City Council - Personal Services $ 20,080 $ 20,024 $ (56) Materials and Supplies 250 201 (49) Purchased Services 15,600 15,348 (252) Other Services and Charges 17,920 17,461 (459) Total Mayor and City Council 53,850 53,034 (816) Newsletter - Other Services and Charges 5,300 5,247 (53) City Clerk - Personal Services 71,795 71,424 (371) Materials and Supplies 400 464 64 Purchased Services 15,000 15,030 30 Other Services and Charges 875 1,121 246 Total City Clerk 88,070 88,039 (31) Administration - Personal Services 55,628 57,467 1,839 Materials and Supplies 3,300 2,598 (702) Purchased Services 12,850 10,857 (1,993) Other Services and Charges 4,500 4,023 (477) Total Administration 76,278 74,945 (1,333) Financial Administration - Personal Services 139,693 141,051 1,358 Materials and Supplies 2,800 2,097 (703) Purchased Services 2,455 4,501 2,046 Other Services and Charges 5,200 4,098 (1,102) Capital Outlay 4,500 0 (4,500) Total Financial Administration 154,648 151,747 (2,901) 46 .- CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 (Continued) Over (Under) Budget Actual Budget EXPENDITURES: (Continued) General Government - (Continued) Elections - Personal Services $ 15,306 $ 13,850 $ (1,456) Materials and Supplies 250 203 (47) Purchased Services 1,690 1,583 (107) Total Elections 17,246 15,636 (1,610) Assessing - Other Services and Charges 67,000 69,799 2,799 Legal and Accounting - Other Services and Charges 101,800 108,833 7,033 Planning and Zoning - Personal Services 96,704 104,242 7,538 Materials and Supplies 3,500 2,452 (1,048) Purchased Services 6,965 7,157 192 Other Services and Charges 3,000 2,952 (48) Capital Outlay 1,000 0 (1,000) Total Planning and Zoning 111,169 116,803 5,634 Data Processing - Materials and Supplies 28,225 27,437 (788) City Hall Building - Materials and Supplies 4,000 3,911 (89) Purchased Services 24,000 25,546 1,546 Other Services and Charges 9,900 8,685 (1,215) Capital Outlay 11,000 10,129 (871) Total City Hall Building 48,900 48,271 (629) Fire Department Building - Material~ and Supplies 3,450 1,598 (1,852) Purchased Services 34,850 34,106 (744) Other Services and Charges 6,200 4,917 (1,283) Total Fire Department Building 44,500 40,621 (3,879) 47 -;;:-----,:::::<~-I c ~ ~ ~ ~ ~ ,. w. ~ " .' .. [ ~ .. ~ ~ ~ ,. .. ,... ,I .. ~ .. ~ ~ 1 I I 1 1 I 1 1 - I 1 1 1 1 - 1 - 1 I 1 = I 1 CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 (Continued) Over (Under) Budget Actual Budget EXPENDITURES: (Continued) General Govemment - (Continued) Public Works Building - Materials and Supplies $ 6,000 $ 4,470 $ (1,530) Purchased Services 19,150 19,905 755 Other Services and Charges 5,150 4,472 (678) Capital Outlay 15,500 16,535 1,035 Total Public Works Building 45,800 45,382 (418) Senior Citizen Center - Materials and Supplies 700 0 (700) Purchased Services 6,362 6,685 323 Other Services and Charges 4,000 1,898 (2,102) Total Senior Citizen Center 11,062 8,583 (2,479) Equipment Building - Materials and Supplies 720 219 (501) Purchased Services 2,530 2,492 (38) Other Services and Charges 500 296 (204) Total Equipment Building 3,750 3,007 (743) City Hall Garage - Materials and Supplies 100 0 (100) Purchased Services 917 430 (487) Total City Hall Garage 1,017 430 (587) Engineering - Personal Services 201,442 192,060 (9,382) Materials and Supplies 7,100 4,800 (2,300) Purchased Services 4,830 4,859 29 Other Services and Charges 5,300 4,517 (783) Capital Outlay 4,500 4,535 35 Total Engineering 223,172 210,771 (12,401) Total General Government 1,081,787 1,068,585 (13,202) 48 .~ W CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND ~ CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND ~ Year Ended December 31, 1996 (Continued) ~ Over (Under) ~ Budget Actual Budget EXPENDITURES: (Continued) Public Safety - ~ Police - Materials and Supplies $ 75 $ 21 $ (54) Purchased Services 553,790 598,922 45,132 ~ Other Services and Charges 4,685 0 (4,685) .. Total Police 558,550 598,943 40,393 [ Fire Protection - . ! Personal Services 284,184 312,944 28,760 Materials and Supplies 24,235 19,596 (4,639) ~ Purchased Services 16,100 14,051 (2,049) Other Services and Charges 87,450 83,350 (4,100) Capital Outlay 30,960 31,573 613 0 Total Fire Protection 442,929 461,514 18,585 Protective Inspection - C Personal Services 207,113 217,392 10,279 Materials and Supplies 6,600 5,771 (829) Purchased Services 2,725 2,684 (41) C Other Services and Charges 7,850 8,730 880 Capital Outlay 1,200 1,143 (57) Total Protective Inspection 225,488 235,720 10,232 C Civil Defense - Personal Services 2,819 2,818 (1) C Materials and Supplies 3,100 5,142 2,042 Purchased Services 1,440 1,163 (277) Other Services and Charges 3,000 3,817 817 C Total Civil Defense 10,359 12,940 2,581 Animal Control - C Materials and Supplies 200 75 (125) Purchased Services 10,200 11,488 1,288 Total Animal Control 10,400 11,563 1,163 C Total Public Safety 1,247,726 72,954 1,320,680 49 C C - - - - - -- ----.------ - -- ----- ~- -------- - ~--I - 1 1 1 I I 1 1 1 1 1 I 1 1 -I I I 1 -I ~ I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 (Continued) Over (Under) Budget Actual Budget EXPENDITURES: (Continued) Public Works - Streets and Highways - Personal Services $ 129,538 $ 139,552 $ 10,014 Materials and Supplies 27,750 33,087 5,337 Purchased Services 12,100 12,384 284 Other Services and Charges 56,830 52,257 (4,573) Capital Outlay 307,750 302,756 (4,994) Total Streets and Highways 533,968 540,036 6,068 Snow and Ice Removal- 0 Personal Services 109,511 100,448 (9,063) Materials and Supplies 89,900 65,811 (24,089) Purchased Services 2,500 2,146 (354) Other Services and Charges 47,600 46,825 (775) Total Snow and Ice Removal 249,511 215,230 (34,281) Street Lighting - Purchased Services 18,500 17,531 (969) Other Services and Charges 0 100 100 Capital Outlay 1,500 610 (890) Billed Services 91,700 89,534 (2,166) Total Street Lighting 111,700 107,775 (3,925) Street Signs - Personal Services 35,304 27,256 (8,048) Materials and Supplies 12,530 18,823 6,293 Purchased Services 90 90 0 Other Services and Charges 17,700 16,257 (1,443) Capital Outlay 0 5,395 5,395 Total Street Signs 65,624 67,821 2,197 Traffic Signals - Purchased Services 17,000 16,610 (390) Total Public Works 977,803 947,472 (30,331) 50 I ::.~ CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1996 (Continued) Over (Under) Budget Actual Budget EXPENDITURES: (Continued) Sanitation - Storm Sewers - Personal Services $ 22,599 $ 9,695 $ (12,904) Materials and Supplies 2,600 4,517 1,917 Purchased Services 700 291 (409) Other Services and Charges 2,550 4,161 1,611 Capital Outlay 17,000 10,546 (6,454) Total Storm Sewers 45,449 29,210 (16,239) Tree Preservation and Weed Control- Personal Services 21,103 17,075 (4,028) Materials and Supplies 3,250 3,854 604 Purchased Services 8,987 6,474 (2,513) Other Services and Charges 15,450 3,101 (12,349) Capital Outlay 0 803 803 Total Tree Preservation and Weed Control 48,790 31,307 (17,483) Total Sanitation 94,239 60,517 (33,722) Parks and Recreation - Personal Services 164,987 169,604 4,617 Materials and Supplies 36,635 33,416 (3,219) Purchased Services 18,138 20,435 2,297 Other Services and Charges 62,500 55,578 (6,922) Capital Outlay 72,750 74,397 1,647 Miscellaneous 60,580 102,087 41,507 Total Parks and Recreation 415,590 455,517 39,927 Recycling - Personal Services 21,436 22,054 618 Materials and Supplies 1,700 2,484 784 Purchased Services 4,900 6,235 1,335 Other Services and Charges 17,100 22,821 5,721 Capital Outlay 0 1,576 1,576 Total Recycling 45,136 55,170 10,034 51 ------ - - ----=--~----..c-j -- ~ ~ ~ ~ ~ ~ t ~ ~ r!I .. ~ ~ .. .' .. ~ .. ~ C ~ m ~ C, I C I CITY OF ANDOVER, MINNESOTA 1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL I GENERAL FUND Year Ended December 31, 1996 (Continued) I Over I (Under) Budget Actual Budget EXPENDITURES: (Continued) 1 Unallocated - CDBG $ 57,276 $ 84,283 $ 27,007 Insurance 38,300 29,501 (8,799) 1 Miscellaneous 34,271 40,301 6,030 Total Unallocated 129,847 154,085 24,238 1 Total Expenditures 3,992,128 4,062,026 69,898 EXCESS OF REVENUES OVER (UNDER) I EXPENDITURES (179,000) 39,833 218,833 OTHER FINANCING SOURCES (USES): I Operating Transfers In 71,000 71,000 0 Operating Transfers Out (8,000) (8,000) 0 Proceeds from Sale of Fixed Assets 0 11,552 11,552 1 Total Other Financing Sources (Uses) 63,000 74,552 11,552 EXCESS OF REVENUES AND OTHER 1 FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ 016,000) 114,385 $ 230,385 I FUND BALANCE - January 1 1,696,900 Residual Equity Transfer (Out) (531,653) 1 FUND BALANCE - December 31 $ 1,279,632 1 1 - 1 1 52 - 1 ----- ::U. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ c ~ I' ' !iii ~ [ [ ~ t ~ t ~ Wi, I - - - . 1-.- I I I I I I 1 1 1 I 1 1 1 -I 1 I 1 1 1 1 CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, charter provision, or local ordinance to finance particular functions or activities of government. ; - CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMBfrITNGBALANCESHEET December 31, 1996 With Comparative Totals for December 31,1995 Drainage and EDA Forestry LRRWMO Mapping General ASSETS Cash and Investments $ 37,650 $ 5,097 $ 64,442 $ 25,947 Taxes Receivable: Delinquent 0 328 0 0 Accounts Receivable 0 0 1,145 0 Interest Receivable 1,254 36 1,851 0 Due from Other Governmental Units 0 140 0 0 TOTAL ASSETS $ 38,904 $ 5,601 $ 67.438 $ 25,947 LIABILITIES AND FUND BALANCE (DEFICI1) Liabilities: Accounts Payable $ 6 $ 0 $ 939 $ 0 Accrued Items 0 262 0 800 Deferred Revenue 40,260 328 0 0 Total Liabilities 40,266 590 939 800 Fund Balance (Deficit): Unreserved - Designated for Equipment 0 0 0 0 Undesignated (1,362) 5,011 66,499 25,147 Total Fund Balance (Deficit) (1,362) 5,011 66,499 25,147 TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) $ 38,904 $ 5,601 $ 67.438 $ 25,947 --- ~.;- I ~ ~ ~ ~ ~ w.J ~ ~ ~ W.J ~ .. ~ ~" WI! ~ ~ I' III ,.. ~ ~ r * [ ,.. I III ". III I I I I Capital I Trail and Septic Equipment Developers Totals Transportation Disposal Reserve Sealcoating 1996 1995 $ 60,701 $ 3,109 $ 481,178 $ 82,661 $ 760,785 $ 150,161 -I 0 0 0 0 328 368 0 470 0 0 1,615 0 I 1,559 60 17,568 0 22,328 1,977 0 0 0 0 140 120 I $ 62,260 $ 3.639 $ 498.746 $ 82.661 $ 785.196 $ 152.626 -I $ 0 $ 0 $ 0 $ 0 $ 945 $ 1,516 I 0 0 0 0 1,062 1,338 59,250 0 0 82,661 182,499 40,628 59,250 0 0 82,661 184,506 43,482 I 1 0 0 498,746 0 498,746 0 3,010 3,639 0 0 101,944 109,144 3,010 3,639 498,746 0 600,690 109,144 1 $ 62.260 $ 3.639 $ 498.746 $ 82.661 $ 785,196 $ 152.626 1 - 1 1 - 1 1 53 ~ 1 " I I I I Capital Totals I Trail and Septic Andover Equipment December 31 Transportation Disposal Days Reserve 1996 1995 I $ 0 $ 0 $ 0 $ 0 $ 13,492 $ 12,579 0 0 0 0 0 12 0 0 0 0 0 7,040 I 0 0 0 0 3,487 3,481 0 3,550 0 0 26,940 0 I 3,010 89 62 30,563 42,223 2,213 0 0 8,034 0 91,332 46,246 3,010 3,639 8,096 30,563 177,474 71,571 I I 0 0 0 0 93,618 0 0 0 627 3,500 4,931 0 0 0 7,025 0 19,227 0 0 0 444 25,950 53,273 93,319 I 0 0 0 152,594 165,106 0 0 0 8,096 182,044 336,155 93,319 I 3,010 3,639 0 (151,481) (158,681) (21,748) I 0 0 0 115,000 115,000 23,253 0 0 0 (31,500) (53,730) 0 I 0 0 0 0 22,230 10,000 0 0 0 83,500 83,500 33,253 I 3,010 3,639 0 (67,981) (75,181) 11,505 I 0 0 0 0 109,144 97,639 0 0 0 566,727 566,727 0 I $ 3,010 $ 3,639 $ 0 $ 498,746 $ 600,690 $ 109,144 I 54 I ~ ---- EXPENDITURES: Current - Personal Services Materials and Supplies Purchased Services Other Services and Charges Total Expenditures 0 9,766 9,766 0 247 247 0 93 93 0 20,105 20,105 0 30,211 30,211 $ 0 (14,170) $ 04,170) 12,808 $ 0,362) t t t ~ '~ C ~ C ~ ~ o ~ c ~ c c c ~ 55 t CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FORESTRY FUND Year Ended December 31, 1996 REVENUES: Charges for Services Miscellaneous - Interest Total Revenues Over (Under) Budget Actual Budget $ 0 $ 12,821 $ 12,821 0 3,220 3,220 0 16,041 16,041 EXCESSOFREVENUES~ER) EXPENDITURES FUND BALANCE - January 1 FUND BALANCE (DEFICIT)- December 31 - -.........--1 I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LRRWMO FUND Year Ended December 31,1996 REVENUES: General Property Taxes Intergovernmental - State Aids Miscellaneous - Interest Total Revenues Over (Under) Budget Actual Budget $ 13,395 $ 13,492 $ 97 3,470 3,487 17 100 70 (30) 16,965 17,049 84 EXPENDITURES: Current - Personal Services Materials and Supplies Purchased Services Other Services and Charges Total Expenditures 11 ,205 11,223 18 555 0 (555) 1,000 532 (468) 4,205 4,358 153 16,965 16,113 (852) $ 0 936 $ 936 4,075 $ 5.011 EXCESS OF REVENUES OVER EXPENDITURES FUND BALANCE - January 1 FUND BALANCE - December 31 56 ~ CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DRAINAGE AND MAPPING FUND Year Ended December 31, 1996 REVENUES: Miscellaneous - Interest Other Total Revenues Over (Under) Budget Actual Budget $ 0 $ 4,738 $ 4,738 0 5,098 5,098 0 9,836 9,836 EXPENDITURES Current - Materials and Supplies Purchased Services Other Services and Charges Capital Outlay Total Expenditures 0 557 557 0 1,685 1,685 0 1,829 1,829 0 12,512 12,512 0 16,583 16,583 $ 0 (6,747) $ (6,747) 73,246 $ 66,499 EXCESS OF REVENUES (UNDER) EXPENDITURES FUND BALANCE - January 1 FUND BALANCE - December 31 - -~---- -- --- ~- -,:::;:;:::r t ~ ~ lilt c c ~ t C I!Il ~ r1 ~ ~ C Ir1 ~ "'~ ~ ~ C C C 57 C CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL _ EDA GENERAL FUND Year Ended December 31, 1996 Over (Under) _ REVENUES: Budget Actual Budget Tax Increments $ 4,000 $ 0 $ (4,000) Charges for Services 0 10,569 10,569 Miscellaneous - 0 Interest 1,500 471 (1,029) Other 78,200 78,200 0 Total Revenues 83,700 89,240 5,540 EXPENDITURES: Current - Personal Services 72,193 72,629 436 Materials and Supplies 4,000 0 (4,000) Purchased Services 14,015 9,892 (4,123) Other Services and Charges 2,104 587 (1,517) Total Expenditures 92,312 83,108 (9 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (8,612) 6,132 14,744 OTHER FINANCING SOURCES (USES): Operating Transfers (Out) 0 (22,230) (22,230) Proceeds From Sale of Property 0 22,230 22,230 Total Other Financing Sources (Uses) 0 0 0 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ (8,612) 6,132 $ 14,744 FUND BALANCE - January 1 19,015 FUND BALANCE - December 31 $ 25,147 58 CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRAIL AND TRANSPORTATION Year Ended December 31, 1996 Over (Under) Budget Actual Budget REVENUES: Miscellaneous - $ $ $ Interest 0 3,010 3,010 Total Revenues 0 3,010 3,010 EXPENDITURES 0 0 0 EXCESS OF REVENUES OVER EXPENDITURES $ 0 3,010 $ 3,010 FUND BALANCE - January 1 0 FUND BALANCE - December 31 $ 3,010 ---~-~=----- ~ ~ III L [ ~ ~ ~ ~ t ~ ~ ~ ~ ~ r1 11M 59 t L L t I I I 1 I I I I 1 1 1 I 1 I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SEPTIC DISPOSAL FUND Year Ended December 31, 1996 Over (Under) Budget Actual Budget REVENUES: Charges for Services $ 0 $ 3,550 $ 3,550 Miscellaneous - 0 Interest 0 89 89 Total Revenues 0 3,639 3,639 EXPENDITURES Total Expenditures 0 0 0 EXCESS OF REVENUES OVER EXPENDITURES $ 0 3,639 $ 3,639 FUND BALANCE - January 1 0 FUND BALANCE - December 31 $ 3,639 60 ~ CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ANDOVER DAYS FUND Year Ended December 31, 1996 REVENUES: Miscellaneous - Interest Other Total Revenues Over (Under) Budget Actual Budget $ 0 $ 62 $ 62 0 8,034 8,034 0 8,096 8,096 EXPENDITURES Current - Materials and Supplies Purchased Services Other Services and Charges Total Expenditures 0 627 627 0 7,025 7,025 0 444 444 0 8,096 8,096 $ 0 0 $ 0 0 $ 0 EXCESS OF REVENUES OVER EXPENDITURES FUND BALANCE - January 1 FUND BALANCE - December 31 --=---~-- ~ ~ W ~ ~ ~ ~ ~ C ~ W W ~ C ~ ~ ~ ~ 61 ~ 1 CITY OF ANDOVER, MINNESOTA ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ' CAPITAL EQUIPMENT RESERVE FUND Year Ended December 31, 1996 ' Over (Under) ' REVENUES: Budget Actual Budget Miscellaneous - ' Interest $ 0 $ 30,563 $ 30,563 Total Revenues 0 30,563 30,563 ' EXPENDITURES: Current - Materials and Supplies 0 3,500 3,500 ' Other Services and Charges 0 25,950 25,950 Capital Outlay 0 152,594 152,594 Total Expenditures 0 182,044 182,044 ' EXCESS OF REVENUES (UNDER) EXPENDITURES 0 (151,481) (151,481) OTHER FINANCING SOURCES (USES): Operating Transfers In 0 115,000 115,000 Operating Transfers (Out) 0 (31,500) (31,500) ' Total Other Financing Sources (Uses) 0 83,500 83,500 EXCESS OF REVENUES AND OTHER 1 SOURCES (UNDER) EXPENDITURES 0 (67,981) (67,981) FUND BALANCE - January 1 $ 0 0 $ 0 ' Residual Equity Transfer In 566,727 ' FUND BALANCE - December 31 $ 498 62 1 ~ ~ ~ ~ ~ ~ [ ~ ~ ~ ~ ~ ~ ~ !'!Ii, ' ~ !'!Ii, " ~ c ~ ~,' w.J C :--~~-- - I 1 I I 1 I I I I I 1 I 1 I 1 I I 1 1 CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS Debt Service Funds are created to account for the payment of interest and principal on long-term, general obligation debt other than debt issued for and serviced primarily by a governmental enterprise. ~I ~ CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS ~ COMBINING BALANCE SHEET December 31.1996 With Comparative Totals for De<:ember 31. 1995 [ State TIF TIF G.O. G.O. [ Certificates G.O. Aid TfF Bonds Bonds Improvement Improvement of Bonds Bonds Conunercial of 19938 of 1994B Bonds Bonds Indebtedness ofl991A of 1988B Revitalization Project 1-1 Project 1.2 of 1977A ofl978 ~ ASSETS Cash and Investments $ 9.500 $ 47,568 $ 3.1l5 $ 359,424 $ 203,429 $ 344,913 $ 61l,731 $ 109.398 Taxes Receivable. [ Delinquent 2.018 5,481 0 2,373 0 0 0 0 Special Assessments Receivable - Deferred 0 0 0 38.433 0 0 145.720 14,296 Delinquent 0 0 0 0 0 0 971 ,.. I, Interest Receivable 0 0 0 12.967 0 0 19,316 3,072 WI Due from Other Governmental Units 1.019 3,220 0 0 1,509 15 316 169 ~ TOTAL ASSETS $ 12.537 $ 56.269 $ 3.1l5 $ 413.197 $ 204.938 $ 344.928 $ 778.054 $ 126.936 . ~ LIABILITIES AND FUND BALANCE (DEFICIT) ~ Liabilities: Accounts Payable $ 0 $ 0 $ 0 $ 0 0 $ 0 $ 0 $ 0 ~ Deferred Revenue 2,018 5,481 0 40,806 0 0 146,691 14,297 Total Liabilities 2,018 5,481 0 40.806 0 0 146.691 14,297 Fund Balance (Deficit): ~ Reserved For Debt Service 10,519 50,788 3.1l5 372,391 204.938 344.928 631,363 1l2.639 Unreserved - Undesignated 0 0 0 0 0 0 0 0 ~ Total Fund Balance (Deficit) 10,519 50,788 3,lIS 372,391 204.938 344.928 631.363 1l2,639 TOTAL LIABILITIES AND FUND BALANCE ~ (DEFICI'!) $ 12,537 $ 56.269 $ 3.1l5 $ 413.197 204,938 $ 344.928 $ 778.054 $ 126,936 ~ ~ ~ W W ~ h- I I I I I G.O. G.O. G.O. Improvement G.O. G.O. G.O. G.O. G.O. G.O. Improvement Improvement Refunding Improvement Improvement Improvement Improvement Improvement Improvement Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals I of\985B of 1986A ofl986C of 1989 of 1993A ofl994C of 1994D ofl995A ofl996C 1996 1995 $ (17.276) $ 604,365 $ 1,489,542 $ (90,524) $ 565,413 $ 273,024 $ 3,473,961 1.044,062 $ 187.731 $ 9,219.376 $ 7.677,854 I 0 0 0 0 0 0 0 0 0 9,872 9,337 0 4,361 342,701 37,092 388.467 458,039 1,683,289 526.364 561,322 4,200,084 4,766,043 I 0 0 9.537 265 I 5,865 0 350 0 16.990 36,439 0 17,382 41.567 0 15.179 6,973 95.413 29,253 1,929 243.051 157,681 1 0 0 7,170 0 78 1,395 0 298 0 15,189 13.291 (17 276) $ 626.108 $ 1 890 517 $ (53.167) $ 969 138 $ 745.296 $ 5.252 663 $ 1.600.327 S 750982 S 13 704 562 $ 12.660.645 I I 500 S 0 S 0 S 0 S 554 S 0 S 0 0 S 0 S 1.054 S 553 0 4,361 352,238 37,357 388.468 463,904 1,683.289 526.714 561,322 4.226,946 4,811,818 500 4,361 352,238 37,357 389.022 463,904 1.683.289 526.714 561,322 4,228,000 4,812,371 1 0 621.747 1.538,279 0 580.116 281,392 3.569.374 1,073,613 189,660 9,584,862 8,169,655 1 (17,776) 0 0 (90,524) 0 0 0 0 0 (108,300) (321,381) (17,776) 621,747 1.538.279 (90,524) 580.116 281,392 3,569,374 1.073.613 189,660 9.476,562 7,848,274 1 $ (17.276) S 626,108 S 1.890.517 S (53.167) $ 969.138 $ 745.296 $ 5.252.663 $ 1,600.327 $ 750,982 $ 13.704.562 $ 12.660,645 I I 1 1 I 63 1 i - ------ ~ CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1996 With Comparative Totals for the Year Ended Decanber 31, 1995 State TIF TIF G.O. G.O. G.O. G.O. Certificates G.O. Aid TIF Bonds Bonds Improvement Improvement Improvement Improvement of Bonds Bonds Commercial of 19938 of 1994B Bonds Bonds Bonds Bonds Indebtedness of 1991A of 19888 Revitalization "w 1.1 Project 1 -2 of 1977A of 1978 of 1985A of 19858 REVENUES: Taxes S 82,232 $ 250,196 S 0$ 0 S 0$ 0 5 0$ 0 S 0 S 0 Tax Ina meets 0 0 0 562,772 78,244 198,187 0 0 0 0 Special Assessments 0 0 0 5,870 0 0 25,043 8,565 10,547 0 intagovemmrntal - �l State Aids 27,902 102,880 63,512 0 0 0 0 0 0 0 ( t Misc,ellancous - Interestonlnvcmnrnts 0 0 0 45,421 0 0 41,152 6,314 0 0 Other 61 0 0 0 0 31 0 0 0 0 Total Revenues 110,195 353,076 63,512 614,063 78,244 198,218 66,195 14,879 10,547 0 EXPENDITURES: Debt Service - Bond Principal 106,000 250,000 50,000 75,000 50,000 90,000 55,000 20,000 125,000 190,000 Interest and Fiscal Charges 36,222 85,888 10,771 255,536 18,395 54,908 31,750 4,600 6,794 45,066 Other 2,859 1,754 119 0 1,647 0 0 0 2,343 16,114 Total Expenditures 145,081 337,642 60,890 330,536 70,042 144,908 86,750 24,600 134,137 251,180 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (34,886) 15,434 2,622 283,527 8,202 $3,310 (20,555) (9,721) (123,590) (251,180) OTHER FINANCING SOURCES (USES): Operating Transfers In 37,630 0 0 0 0 0 0 0 0 543,811 Operating Transfers Out 0 0 0 0 0 0 0 0 0 0 Bond Proceeds 0 0 0 2,896 0 0 0 0 0 0 Total Other Financing Sconces (Uses) 37,630 0 0 2,896 0 0 0 0 0 543,811 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 2,744 15,434 2,622 286,423 8,202 53,310 (20,555) .(9,721) (123,590) 292,631 FUND BALANCE (DEFICIT) - January 1 7,775 35,354 493 775,338 (612) (200,404) 651,918 122,360 143,571 (310,407) RESIDUAL EQUITY TRANSFERS IN (OUT) 0 0 0 (689,370) 197,348 492,022 0 0 (19,981) 0 FUND BALANCE (DEFICIT) - Decanber3l $ 10.519 S 50.788 5 3,115 $ 372,391 S 204.938 $ 344.928 $ 631,363 $ lIZ639 $ 0 $ 1 I I I G.O. I G.O. G.O. Improvement G,O. G.O. G.O. G.O. G.O. G.O. Improvement Improvement Refunding Improvement Improvement Improvement Improvement Improvement Improvement Bond. Bond. Bond. Bonds Bond. Bond. Bond. Bonds Bond. Totals of 1986A of 19868 of 1986C of 1989 of 1993A of 1994C of 19940 of 1995A of 1996C 1996 1995 I 0 s 0 s 0 0 S 0 S 0 0 S 0 0 S 332,428 S 337.490 0 0 0 0 0 0 0 0 0 839.203 770,354 3.423 8,692 187,444 17,880 119.535 140,185 1.437.516 365,434 185,451 2.515,585 3,855.686 I 0 0 0 0 0 0 0 0 194,294 190,595 39,189 92,693 0 41,687 15,489 209,565 69.140 2,401 S63.0~a 258,557 1 0 0 0 0 0 0 0 0 0 92 54 42,612 8,692 280,137 17,880 161,222 155,674 1.647,081 434,574 187,852 4,444.653 5,412.736 1 125,000 340,000 210,000 1,500,000 365,000 0 0 0 0 3,551,000 7,843,000 63.378 22,721 103,416 125,838 122,986 60,806 170,739 152,459 1,500 1,373,773 1,273,964 0 494 0 139 0 0 0 0 0 25,469 9,076 I 188,378 363,215 313,416 1,62S.9n 487,986 60.806 170.739 152,459 1,500 4,950,242 9,126,040 1 (145,766) (354,523) (33,279) (1,608,097) (326,764) 94,868 1.476,342 282,115 186,352 (505,589) (3,713,304) 1 0 0 0 0 0 0 0 0 0 581.441 400,630 0 0 0 0 0 (58) (101) 0 (159) 0 0 0 0 1.200.875 0 0 0 0 3,308 1.207.079 893,767 1 0 0 1.200,875 0 (58) (101) 0 3,308 1.788.361 1,294,397 1 (145,766) (354.523) (33.279) (407,222) (326.764) 94,810 1,476.241 282,115 189.660 1.282.772 (2,418.907) 1 767.513 (10,974) 1,571,558 316,698 906,880 186,582 2,093,133 791,498 0 7,848,274 10,038,090 0 365,491 0 0 0 0 0 0 0 345,516 229,091 1 S s S (90 5241 S 580116 S 281.392 S S S 9476562 S 621747 0 I 538 279 S 3 569.374 1073613 189660 7.848.274 1 1 1 64 1 .. t t ~ ~ ~ ~ ~ ~ ~ ~ c ~ ~ .. li WI ~ . w. ~ ~ . I' .. ~ - -~~---~.-- I I I I I I I I I I I 1 1 I 1 I 1 1 - 1 CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by enterprise funds. CITY OF ANDOVER MINNESOTA �I CAPITAL PROJECTS FUNDS [: COMBINING BALANCE SHEET `( December 31, 1996 With Comparative Totals for December 31, 1995 Improvement Improvement Improvement Improvement Water Storm Bonds Bonds Bonds Bonds Trunk Sewer Sewer of 1993A of 1994D of 1995A of 1996C Project Project Project Project Project Project Project ASSETS Cashand Investments $ 436,917 $ 38,059 $ 802,805 $ 0 $ (802,165) $ (131,452) $ 592,608 Special Assessments Receivable - Deferred 1,038,738 0 234,999 0 0 0 0 Delinquent 21,149 0 12 0 0 0 0 Accounts/Loans Receivable 0 0 0 0 2,386 0 0 Interest Receivable 14,856 1,746 23,248 0 0 0 17,181 Due from Other Governmental Units 2,443 0 124 0 0 0 0 Prepaid Items 0 0 0 0 0 0 0 TOTAL ASSETS $ 1,514,103 $ 39.805 $ 1.061188 $ 0 $ (799.779) $ (131,452) $ 609.789 LIABILITIES AND FUND BALANCE (DEFICIT) LIABILITIES: Accounts Payable $ 1,795 $ 0 $ 0 $ 71 $ 0 $ 1,500 $ 500 Contracts Payable 0 0 0 0 0 0 0 Due to Other Funds 0 0 0 0 0 0 0 Deferred Revenue 1,059 887 0 235,011 0 0 0 0 Total Liabilities 1,061,682 0 235,011 71 0 1500 500 FUND BALANCE (DEFICIT) Unreserved - Designated for Projects 452,421 39,805 826,177 (71) 0 0 609,289 Designated for Equipment 0 0 0 0 0 0 0 Undesignated 0 0 0 0 (799,779) (132,952) 0 Total Fund Balance (Deficit) 452,421 39,805 826,177 (71) (799,779) (132,952) 609,289 TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) $ 1.514,103 $ 39,805 $ 1,061.188 $ 0 $ (799.779) $ (131.4521 $ 609.789 III A � State Aid Tax Public Permanent Unfrnanced City Revolving State Aid Increment Park Works Improvement Total Projects Buildings Projects Projects Projects Dedication - Project Revolving 1996 1995 $ (1,993,670) $ 38,670 $ (255,825) $ 1,087,131 S 4,426,431 $ 197,441 $ (69) $ 970,587 $ 5,407,468 $ 7,665,011 2,884,049 0 15,391 0 0 0 0 897,067 5,070,244 1,581,681 0 0 146 0 0 0 0 11,878 33,185 44,719 0 0 0 0 148,010 3,500 0 419 154,315 165,874 0 4,426 0 21,111 148,176 5,920 0 28,288 264,952 232,008 0 0 19,628 0 8,300 0 0 2,177 32,672 90,603 0 0 0 0 0 2,175 0 0 2,175 0 $ 890,379 $ 43,096 $ (220,660) $ 1,108,242 $ 4.730,917 $ 209,036 $ (69) $ 1,910,416 $ 10,965,011 $ 9.779,896 $ 48,378 $ 324,674 $ 0 $ 0 $ 156,595 $ 1,576 $ 0 $ 44,104 $ 579,193 $ 108,395 87,998 140,358 0 0 111,564 0 0 0 339,920 287,408 0 0 0 0 0 0 0 0 0 20,000 2,884,049 0 35,166 0 147,781 0 0 908,945 5,270,839 1,809,099 3,020,425 465,032 35,166 0 415,940 1,576 0 953,049 6,189,952 2,224,902 0 0 0 1,108,242 4,314,977 0 0 801,247 8,152,087 8,740,772 0 0 0 0 0 207,460 0 156,120 363,580 619,954 (2,130,046) (421,936) (255,826) 0 0 0 (69) 0 (3,740,608) (1,805,732) (2,130,046) (421,936) (255,826) 1,108,242 4,314,977 207,460 (69) 957,367 4,775,059 7,554,994 $ 890.379 $ 43.096 $ (220.660) $ 1.108.242 $ 4.730.917 $ 209.036 $ (69) $ 1.910.416 Y 10.965,011 S 9.779.896 65 CITY OF ANDOVER, MINNESOTA C CAPITAL PROJECTS FUNDS C COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31. 1996 With Comparative Totals for the Year Ended December 31, 1995 ~ Improvement Improvement Improvement Improvement Improvement Water Stonn Bonds Bonds Bonds Bonds Bonds ~ Trunk Sew<< Sew<< ofl993A of 1994C ofl9940 of 1995A ofl996C Unf1nanced Project Project Proiect Project Project Project Project Project Proiects REVENUES: Special Assessments $ 163.737 $ 0 $ 26,728 $ 0 0 0 0 $ 0 $ 361,925 ~ Intergovemmental- State Aids 0 0 0 0 0 0 0 0 0 Olli<< 0 0 0 0 0 0 0 0 0 Other Revenue - C Interest 52,333 5,543 54,676 0 0 0 0 34,031 0 Park: Dedication Fees 0 0 0 0 0 0 0 0 0 Refunds and Reimbursements 0 0 0 0 0 0 0 0 0 Miscellaneous 32.818 200 174,116 0 0 46,053 0 0 0 C Total Revenues 248.888 5.743 255.520 0 0 46,053 0 34,031 361,925 EXPENDmJRES: ~ Capital Projects- Capital Outlay 202.785 0 423 71 36.740 24,209 34,364 815 1,945.558 Interest 0 0 0 0 6,JlO 44,932 12,794 0 46,310 Total Expenditures 202.785 0 423 71 42,850 69,141 47.158 815 1,991.868 ~ EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 46,103 5,743 255.097 (71) (42,850) (23.088) (47.158) 33,216 (1,629,943) OrnER FINANCING SOURCES (USES): ~ Operating Transfers In 6.687 0 0 0 184,039 175.473 0 0 841.042 Operating Transfers Out (321,739) (29,971) (97,370) 0 (175,473) 0 (119) (3.164) (617.465)~ Bond Proceeds 0 0 0 0 0 0 0 579,237 0 ~ Proceeds from Sale of Property 0 0 0 0 0 0 0 0 0 Total Other Financing Sources (Uses) (315,052) (29,971) (97,370) 0 8,566 175.473 (119) 576.073 223,577 EXCESS OF REVENUES AND OrnER ~ FINANCING SOURCES OVER (UNDER) EXPENDmJRES AND OTIlER FINANCING USES (268.949) (24,228) 157.727 (71) (34,284) 152,385 (47,277) 609,289 (1,406,366) ~ FUND BALANCE (DEFlCIT)-lanU3ly I 721,370 64,033 668.450 0 34,284 (952,164) (85,675) 0 (723.680) RESIDUAL EQUITY TRANSFERS 0 0 0 0 0 0 0 0 0 ~ FUND BALANCE (DEFICIT)- Decemb<< 31 $ 452.421 $ 39,805 $ 826,177 $ 17n 0 $ (799.779) $ (132952) $ 609.289 $ (2.130046) [ ,. w. ,.. .' .. ,. .. ~ ~ I State Aid Tax Public Pemtanent Kelsey 1995 City Revolving State Aid Increment Park Works Improvement Round Lake Total Equipment Buildings Projects Projects Projects Dedication Project Revolving Park 1996 1995 5 0 5 0 S 2,861 S 0 $ .0 S 0 $ 0 $ 363,845 S 0 S 919,096 S 396,419 0 0 61,158 650,330 0 0 0 0 0 711,488 15,570 0 0 0 0 0 0 0 0 0 0 60,000 0 11,105 0 46,796 331,821 10,615 0 36,698 0 583,618 283,034 0 0 0 0 0 172,233 0 0 0 172,233 143,382 0 0 0 0 4,423 0 0 8,447 0 12,870 8 0 0 0 0 23,877 35,278 0 0 0 312,342 371,819 0 11,105 64,019 697,126 360,121 218,126 0 408,990 0 2,711,647 1,270,232 340,904 662,614 0 39,783 3,296,943 147,079 69 295,827 504 7,028,688 7,795,266 3,502 0 0 0 0 0 0 0 442 114,090 31,094 344.406 662,614 0 39,783 3,296,943 147,079 69 295,827 946 7,142,778 7,826360 (344,406) (651509) 64,019 657,343 (2,936,822) 71,047 (69) 113,163 (946) (4,431,131) (6,556,128) 16,985 22,230 0 0 0 0 0 125,579 25,166 1397,201 1,122,965 0 0 (299,852) 0 0 0 0 (433,970) 0 (1,979,123) (1,769,706) 0 0 0 0 1,999397 0 0 0 0 2,578.634 8,905,199 0 0 0 0 0 0 0 0 0 0 154,925 16,985 22,230 (299,852) 0 1,999397 0 0 (308391) 25,166 1,996,712 8,413,383 (327,421) (629,279) (235,833) 657,343 (937,425) 71.047 (69) (195,228) 24,220 (2,434,419) 1,857,255 ' 327,421 207,343 (19,993) 450,899 5,252,402 136,413 0 1,498,111 (24,220) 7,554,994 5,926,830 0 0 0 0 0 0 0 (345516) 0 (345516) (229,091) ' $ O $ (421.936) $ (255.826) S 1.108.242 S 4314,977 $ 207.460 S (69) $ 957,367 S 0 $ 4.775.059 $ 7.554.994 66 - --. j..--.,=--j c ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ !III " ~ ~ ... !III f ... = ~ C I ~ i .. I I I I I -I - I I I 1 1 1 1 1 I I 1 ~I il - CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS Enterprise Funds are established to account for the financing of self-supporting activities of governmental units which render services on a user charge basis to the general public. The reports of Enterprise Funds are similar to comparable private enterprise and are self- contained. Creditors, legislators or the general public can evaluate the performance of the municipal enterprise on the same basis as they can the performance of investor-owned enterprises. -, CITY OF ANDOVER, MINNESOTA t ENTERPRISE FUNDS t COMBINING BALANCE SHEET December 31,1996 With Comparative Totals for December 31, 1995 ~ . . Water Sewer ~ ASSETS CURRENT ASSETS: ~ Cash and Cash Equivalents $ 680,233 $ 350,863 Special Assessments Receivable - Deferred 0 8,462 ~ Delinquent 0 5,253 iIIl Accounts Receivable 324,763 276,333 Interest Receivable 19,044 10,751 ~ Due From Other Governmental Units 0 15,777 Inventory 11,729 0 Prepaid Items 2,638 46,109 ~ Total Current Assets 1,038,407 713,548 PROPERTY, PLANT AND EQUIPMENT: ~ Furniture and Equipment 574,072 126,430 i I Machinery 898,814 0 Collection and Distribution System 9,861,744 13,897,294 ~ Total Cost 11,334,630 14,023,724 w.J Less: Accumulated Depreciation (1,896,054) (2,784,352) Net Property, Plant and Equipment 9,438,576 11,239,372 ~ I j TOTAL ASSETS $ 10,476,983 $ 11,952,920 LIABILITIES AND FUND EQUITY ~ LIABILITIES: Current Liabilities: Accounts Payable $ 12,838 $ 7,578 ~ Accrued Items 10,170 9,987 Due to Other Governmental Units 301 2,337 Deferred Revenue 0 2,932 C Total Current Liabilities 23,309 22,834 FUND EQUITY: ~ Contributed Capital 9,321,636 11,174,527 ~ Retained Earnings: Reserved 44,307 0 !Ill Unreserved 1,087,731 755,559 ' I ~ Total Fund Equity 10,453,674 11,930,086 TOTAL LIABILITIES AND C FUND EQUITY $ 10,476,983 $ 11,952,920 C C I ----=--~--,::c;:---r- - !~ 11 il - :1 Totals 1996 1995 :1 $ 1,031,096 $ 834,206 :1 8,462 8,462 5,253 5,272 601,096 367,618 ~I 29,795 19,709 15,777 173 11,729 9,692 I 48,747 47,525 1,751,955 1,292,657 I 700,502 625,070 898,814 898,814 I 23,759,038 23,424,110 25,358,354 24,947,994 (4,680,406) (4,097,265) I 20,677,948 20,850,729 $ 22,429,903 $ 22,143,386 - I I $ 20,416 $ 10,600 20,157 11,728 2,638 2,679 1 2,932 2,951 46,143 27,958 I 20,496,163 20,629,717 I 44,307 60,074 1,843,290 1,425,637 22,383,760 22,115,428 I $ 22,429,903 $ 22,143,386 I 67 I ------ --- -- - CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Year Ended December 31,1996 With Comparative Totals for the Year Ended December 31, 1995 Water OPERATING REVENUES: User Charges Meters Permit Fees Penalties Other Total Operating Revenues $ 657,448 38,803 12,686 8,789 131 717,857 OPERATING EXPENSES: Personal Services Supplies Other Services and Charges Disposal Charges Depreciation Total Operating Expenses 164,315 36,305 100,509 o 290,076 591,205 126,652 OPERATING INCOME (LOSS) NON-OPERATING REVENUES: Interest on Investments Other Total Non-Operating Revenues 41,130 216 41,346 167,998 o (105,040) (105,040) 62,958 194,584 874,496 o INCOME BEFORE OPERATING TRANSFERS Operating Transfers In Operating Transfers (Out) Total Operating Transfers NET INCOME (LOSS) Add: Depreciation Charged Against Contributed Capital RETAINED EARNINGS - January 1 Residual Equity Transfer RETAINED EARNINGS - December 31 $ 1,132,038 $ -=---.-0=-T - Sewer I ~ll 1.., , ! CI! I Ci i I I C' ! r.: I ~I ~ $ 801,808 o o 10,619 o 812,427 120,150 5,881 45,961 483,132 293,065 948,189 (135,762) r1 iIIJ [ ~ 1.1 28,372 o 28,372 (107,390) 30,500 (17,590) 12,910 ~ ~ . t: IIiI (94,480) 273,898 611,215 (35,074) 755,559 r- .. ~ I IIiI c ,. I , .. c ~ 1 Totals 1996 1995 $ 1 $ 1,149,898 38,803 44,723 ' 12,686 13,600 19,408 18,304 131 21,736 1,530,284 1,248,261 284,465 247,151 42,186 31,498 146,470 122,964 483,132 423,121 583,141 476,525 1,539,394 1,301,259 ' (9,110) (52,998) ' 69,502 25 216 0 69,718 25,365 ' 60,608 (27,633) ' 30,500 30,500 (122,630) (37,630) (92,130) (7,130) (31,522) (34,763) ' 468,482 387,461 1,485,711 1,133,013 ' (35,074) 0 $ 1,887,597 $ 1,485,711 68 CITY OF ANDOVER, MINNESOTA D ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 1996 With Comparative Totals for the Year Ended December 31, 1995 Totals Water Sewer 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income (Loss) $ 126,652 $ (135,762) $ (9,110) $ (52,998) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation 290,076 293,065 583,141 476,525 Change in Assets and Liabilities: (Increase) Decrease in Special Assessments 0 19 19 (1 (Increase) in Accounts Receivable (216,137) (17,341) (233,478) (93,170) (Increase) in Interest Receivable (4,356) (5,730) (10,086) 0 (Increase) Decrease in Due From Other Governmental Units 0 (15,604) (15,604) 208 (Increase) in Inventory (2,037) 0 (2,037) (3,586) (Increase) Decrease in Prepaid Expenses 1,176 (2,398) (1,222) (11,822) Increase (Decrease) in Accounts Payable 8,128 1,688 9,816 (1,856) Increase (Decrease) in Accrued Items 2,540 5,889 8,429 (5,372) Increase (Decrease) in Due to Other Governmental Units (41) 0 (41) 153 W Increase (Decrease) in Deferred Revenue 0 (19) (19) 1,569 Total Adjustments 79,349 259,569 338,918 361,080 r Net Cash Provided by Operating Activities 206,001 123,807 329,808 308,082 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers (To) Other Funds (105,040) (22,164) (127 (7,130) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Fixed Assets (57,007) (18,425) (75,432) (142,167) Other Revenues 216 0 216 0 Net Cash (Used) by Capital and Related Financing Activities (56,791) (18,425) (75,216) (142,167) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on Investments 41,130 28,372 69,502 16,574 Net Increase in Cash and Cash Equivalents 85,300 111,590 196,890 175,359 Cash and Cash Equivalents, January 1 594,933 239,273 834,206 658,847 Cash and Cash Equivalents, December 31 $ 680,233 $ 350,863 $ 1,031,096 $ 834,206 69 a I I I I I -I I I I I I I I - I I - I I -I c I 1 -. CITY OF ANDOVER, MINNESOTA COMPARATIVE BALANCE SHEET- WATER FUND December 31, 1996 and 1995 1996 1995 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 680,233 $ 594,933 Accounts Receivable 324,763 108,626 Interest Receivable 19,044 14,688 Prepaid Items 2,638 3,814 Inventory 11,729 9,692 Total Current Assets 1,038,407 731,753 PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment 574,072 517,065 Machinery 898,814 898,814 Distribution System 9,861,744 9,729,204 Total Cost 11,334,630 11,145,083 Less: Accumulated Depreciation (1,896,054) (1,605,978) Net Property, Plant and Equipment 9,438,576 9,539,105 TOTAL ASSETS $ 10,476,983 $ 10,270,858 LIABILITIES AND FUND EQUITY: CURRENT LIABILITIES: Accounts Payable $ 12,838 $ 4,710 Accrued Items 10,170 7,630 Due to Other Governmental Units 301 342 Total Liabilities 23,309 12,682 FUND EQUITY: Contributed Capital 9,321,636 9,383,680 Retained Earnings: Reserved 44,307 25,000 Unreserved 1,087,731 849,496 Total Fund Equity 10,453,674 10,258,176 TOTAL LIABILITIES AND FUND EQUITY $ 10,476,983 $ 10,270,858 70 CITY OF ANDOVER, MINNESOTA WATER FUND COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1996 and 1995 1996 1995 Amount Percent Amount Percent OPERATING REVENUES: User Charges $ 657,448 91.6 % $ 451,356 87.3 % Meters 38,803 5.4 44,723 8.7 Permit Fees 12,686 1.8 13,600 2.6 Penalties 8,789 1.2 7,082 1.4 Other 131 0.0 130 0.0 Total Operating Revenues 717,857 100.0 516,891 100.0 OPERATING EXPENSES: Personal Services 164,315 22.9 148,263 28.7 Supplies 36,305 5.1 26,203 5.1 Other Services and Charges 100,509 14.0 89,209 17.2 Depreciation 290,076 40.4 240,097 46.5 Total Operating Expenses 591,205 82.4 503,772 97.5 OPERATING INCOME 126,652 17.6 13,119 2.5 NON-OPERATING REVENUES (EXPENSES): Interest on Investments 41,130 5.8 17,883 3.5 Sale of Used Equipment 216 0.0 0 0.0 Total Non-Operating Revenues 41,346 5.8 17,883 3.5 INCOME BEFORE OPERATING TRANSFERS 167,998 23.4 % 31,002 6.0 % Operating Transfers Out (105,040) 0 NET INCOME 62,958 31,002 Add: Depreciation Charged Against Contributed Capital 194,584 167,087 RETAINED EARNINGS - January 1 874,496 676,407 RETAINED EARNINGS - December 31 $ 1,132,038 $ 874.496 ,,~- ~ .. ~ ~ ~ III !III f' .. ~ ~ 71 ~ ~ C C C C C C C C C C C I I CITY OF ANDOVER, MINNESOTA COMPARATIVE BALANCE SHEET - SEWER FUND December 31, 1996 and 1995 I 1996 1995 I ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 350,863 $ 239,273 I Special Assessments Receivable - Deferred 8,462 8,462 Delinquent 5,253 5,272 I Accounts Receivable 276,333 258,992 Interest Receivable 10,751 5,021 Due From Other Governmental Units 15,777 173 I Prepaid Items 46,109 43,711 Total Current Assets 713,548 560,904 I PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment 126,430 108,005 Collection System 13,897,294 13,694,906 Total Cost 14,023,724 13,802,911 I Less: Accumulated Depreciation (2,784,352) (2,491,287) Net Property, Plant and Equipment 11,239,372 11,311,624 I TOTAL ASSETS $ 11,952,920 $ 11,872,528 'I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 7,578 $ 5,890 I Accrued Items 9,987 4,098 Due to Other Governmental Units 2,337 2,337 Deferred Revenue 2,932 2,951 I Total Liabilities 22,834 15,276 FUND EQUITY: I Contributed Capital 11,174,527 11,246,037 Retained Earnings: Reserved 0 35,074 I Unreserved 755,559 576,141 Total Fund Equity 11,930,086 11,857,252 I TOTAL LIABILITIES AND FUND EQUITY $ 11,952,920 $ 11,872,528 I I 72 I I ~ CITY OF ANDOVER, MINNESOTA ~ SEWER FUND ~ STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS ~ Years Ended December 31, 1996 and 1995 1996 1995 ~ Amount Percent Amount Percent OPERATING REVENUES: ~ User Charges $ 801,808 98.7 % $ 698,542 95.5 % Penalties 10,619 1.3 11 ,222 1.5 Other 0 0.0 21,606 3.0 C Total Operating Revenues 812,427 100.0 731,370 100.0 OPERATING EXPENSES: ~ Personal Services 120,150 14.8 98,888 13.5 Supplies 5,881 0.7 5,295 0.7 Other Services and Charges 45,961 5.6 33,755 4.6 Disposal Charges 483,132 59.5 423,121 57.9 ~ Depreciation 293,065 36.1 236,428 32.3 Total Operating Expenses 948,189 116.7 797,487 109.0 OPERATING (LOSS) (135,762) (16.7) (66,117) (9.0) ~ NON-OPERATING REVENUES (EXPENSES): ~ Interest on Investments 28,372 3.5 7,482 1.0 Sale of Used Equipment 0 0.0 0 0.0 Total Non-Operating Revenues 28,372 3.5 7,482 1.0 ~ (LOSS) BEFORE OPERATING TRANSFERS (107,390) (13.2)% (58,635) (8.0)% Operating Transfers In 30,500 30,500 ~ Operating Transfers Out (17,590) (37,630) Total Operating Transfers 12,910 (7,130) NET (LOSS) (94,480) (65,765) ~ Add: Depreciation Charged Against ~ Contributed Capital 273,898 220,374 RETAINED EARNINGS - January 1 611,215 456,606 ~ Residual Equity Transfer (Out) (35,074) 0 RETAINED EARNINGS - December 31 $ 755,559 $ 611,215 ~ ~ 73 ~ ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. ._~ CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET CENTRAL EQUIPMENT MAINTENANCE FUND 1996 1995 ASSETS Cash and Cash Equivalents $ (6,779) $ 50,149 Accounts Receivable 893 0 Interest Receivable 0 456 Inventory 19,661 28,422 Total Assets $ 13,775 $ 79.027 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 13,915 $ 14,452 Accrued Items 1,623 1,094 Total Liabilities 15,538 15,546 FUND EQUITY (DEFICIT): Contributed Capital 50,000 50,000 Retained Earnings (Deficit): Unreserved (51,763) 13,481 Total Fund Equity (Deficit) (1,763) 63,481 TOTAL LIABILITIES AND FUND EQUITY $ 13,775 $' 79,027 ----r;=-r --- ~ ~ C ~ ~.' .. ~ ~ ~ w.J ~ ~ ~ ~ ~ ~ C C ~ ~ ~ 74 ~ I I I I I I I I I I '1 I I I I I I I I CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - CENTRAL EQUIPMENT MAINTENANCE FUND Years Ended December 31,1996 and 1995 1996 OPERATING REVENUES: User Charges to other City Funds $ 205,880 OPERATING EXPENSES: Personal Services Supplies Other Services and Charges Capital Outlay Total Operating Expenses 87,110 146,265 54,965 13,871 302,211 (96,331) OPERATING (LOSS) NON-OPERATING REVENUES: Int~estIncome(ChMged) (413) (96,744) 31,500 (65,244) 13,481 (51,763) (LOSS) BEFORE OPERATING TRANSFERS Operating Transfers In NET (LOSS) RETAINED EARNINGS - January 1 RETAINED EARNINGS (DEFICIT) - December 31 $ -'.!! 1995 $ 187,800 57,979 104,571 38,235 38,657 239,442 (51,642) $ (482) (52,124) 31,500 (20,624) 34,105 13,481 75 CITY OF ANDOVER, MINNESOTA STATEMENT OF CASH FLOWS - CENTRAL EQUIPMENT MAINTENANCE INTERNAL SERVICE FUND Years Ended December 31, 1996 and 1995 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Operating (Loss) Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities: Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable Decrease in Interest Receivable (Increase) Decrease in Inventory Increase (Decrease) in Accounts Payable Increase in Accrued Items Total Adjustments $ (96,331) $ (51,642) Net Cash (Used) by Operating Activities (893) 181 456 366 8,761 (5,858) (537) 4,557 529 342 8,316 (412) (88,015) (52,054) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers From Other Funds 31,500 31,500 CASH FLOWS FROM INVESTING ACTIVITIES: Interest (Charged) (413) (482) (56,928) (21,036) Net (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 50,149 71,185 Cash and Cash Equivalents, December 31 $ (6,779) $ 50.149 [C:c-r- -- -- -- ~ ~ .. ~ ~ ~ ~ ~ ~ ~ to ~ ~ ~ ~ ~ ~ ~ ~ ~ 76 ~ I -I I I I I -I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA TRUST AND AGENCY FUNDS Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds. ~. - - --- - - ~-,-- ~ ~ . ... !III ~ i .. 11II ~ ~ ~ ~ ~ ~ ~ ~, ~ ~ ~ ~ ~ ~ ~ ~ ~ 1---- ------------------ I I I I Totals I Agency 1996 1995 $ 333,806 $ 502,358 $ 567,969 192,126 192,126 93,130 I 17,520 17,520 0 0 4,246 0 562 5,166 I $ 543,452 $ 716,812 $ 666,265 I $ 5,486 $ 6,824 $ 4,422 I 0 120 89 345,840 345,840 361,988 192,126 196,576 93,130 I 543,452 549,360 459,629 I 0 65,017 39,934 0 102,435 166,702 I 0 167,452 206,636 cl $ 543,452 $ 716,812 $ 666,265 ]1 11 ~I :1 JI - JI ~i 77 ~ CITY OF ANDOVER, MINNESOTA EXPENDABLE TRUST FUNDS ~ COMBINING STATEMENT OF REVENUES, EXPENDITURES W AND CHANGES IN FUND BALANCE Year Ended December 31, 1996 With Comparative Totals for the Year Ended December 31, 1995 ~ Expendable Trust Totals ~ Administrative Flexible Compensated December 31 Trust Benefits Absences 1996 1995 REVENUES: Miscellaneous - ~ Interest $ 6,733 $ 0 $ 3,190 $ 9,923 $ 7,344 Other 0 8,631 18,115 26,746 32,401 Total Revenues 6,733 8,631 21,305 36,669 39,745 ~ : ' EXPENDITURES: Current - ~ Personal Services 0 0 5,038 5,038 0 i: Materials and Supplies 0 0 227 227 0 Purchased Services 0 7,588 0 7,588 21,423 C Total Expenditures 0 7,588 5,265 12,853 21,423 EXCESS OF REVENUES OVER ~ EXPENDITURES 6,733 1,043 16,040 23,816 18,322 iii OTHER FINANCING SOURCES (USES): lII!II Operating Transfers In 0 0 8,000 8,000 8,000 l: ! Operating Transfers Out (71 ,000) 0 0 (71 ,000) (71 ,000) .- Total Other Financing Sources (Uses) (71,000) 0 8,000 (63,000) (63,000) II!II EXCESS OF REVENUES AND ~ OTHER SOURCES OVER (UNDER) C EXPENDITURES AND OTHER USES (64,267) 1,043 24,040 (39,184) (44,678) FUND BALANCE - January 1 166,702 3,407 36,527 206,636 251,314 FUND BALANCE - December 31 $ 102.435 $ 4.450 $ 60.567 $ 167.452 $ 206.636 ~ ~ ~ ~ ~ ~ 78 c c ~ ~ --=---- --+---0...... j I CITY OF ANDOVER, MINNESOTA I AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES I Year Ended December 31, 1996 Balance Balance I January 1, December 31, 1996 Additions Deductions 1996 ESCROW FUND I ASSETS Cash and Temporary Investments $ 366,410 $ 333,806 $ 366,410 $ 333,806 Accounts Receivable 0 17,520 0 17,520 I Total Assets $ 366,410 $ 351,326 $ 366,410 $ 351,326 I LIABILITIES Accounts Payable $ 4,422 $ 5,486 $ 4,422 $ 5,486 . Deposits Payable 361,988 345,840 361,988 345,840 Total Liabilities $ 366,410 $ 351,326 $ 366,410 $ 351,326 I ICMA DEFERRED COMPENSATION PLAN I ASSETS Cash with Trustee $ 21 ,263 $ 16,073 $ 21,263 $ 16,073 I LIABILITIES Due to Employees $ 21,263 $ 16,073 $ 21,263 $ 16,073 $ 21,263 $ 16,073 $ 21,263 $ 16,073 I PEBSCO DEFERRED COMPENSATION PLAN ASSETS I Cash with Trustee $ 71,867 $ 176,053 $ 71,867 $ 176,053 I LIABILITIES Due to Employees $ 71,867 $ 176,053 $ 71,867 $ 176;053 $ 71.867 $ 176,053 $ 71,867 $ 176,053 I TOTALS - ALL AGENCY FUNDS ASSETS I Cash and Temporary Investments $ 366,410 $ 333,806 $ 366,410 $ 333,806 Cash with Trustee 93,130 192,126 93,130 192,126 Accounts Receivable 0 17,520 0 17,520 Total Assets $ 459,540 $ 543,452 $ 459,540 $ 543,452 I LIABILITIES I Accounts Payable $ 4,422 $ 5,486 $ 4,422 $ 5,486 Deposits Payable 361,988 345,840 361,988 345,840 Due to Employees 93,130 192,126 93,130 192,126 I $ 459,540 $ 543.452 $ 459,540 $ 543.452 79 I . ~ CITY OF ANDOVER, MINNESOTA ~ GENERAL FIXED ASSETS ACCOUNT GROUP ~ ~ General Fixed Assets are those fixed assets of a governmental jurisdiction which are not accounted for in an Enterprise or Trust Fund. To be classified as a fixed asset in this category, a specific piece of property must possess three attributes: (1) tangible nature; (2) a life longer than the current fiscal year; and (3) a significant value. ~ ~ ~ ~ .. ~ ~ ~ C ~ * ~ ~ ~ t t ~ [ C -I ~- I I - I I I I I I I -I I I -I I I I -I I I I I .. CITY OF ANDOVER, MINNESOTA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS Year Ended December 31, 1996 Balance Balance January 1, December 31, 1996 Additions Disposals 1996 GENERAL FIXED ASSETS: Land and Improvements $ 2,473,416 $ 1,475,419 $ 0 $ 3,948,835 Buildings and Improvements 2,010,875 674,829 0 2,685,704 Furniture and Equipment 588,867 105,438 101,530 592,775 Machinery and Equipment 2,788,065 533,206 10,565 3,310,706 Investment in General Fixed Assets $ 7,861,223 $ 2,788,892 $ 112,095 $ 10,538,020 80 ~ .. CITY OF ANDOVER, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP !Ill WI '" w. General obligation bonds and other forms of long-term debt supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. Moreover, the proceeds of such debt may be spent on facilities which are utilized in the operations of several funds. For these reasons the amount of unmatured, long-term indebtedness which is backed by the full faith and credit of the government should be recorded and accounted for in a separate self-balancing group of accounts titled the "General Long-Term Debt Group of Accounts." This debt group will include, in addition to conventional general obligation bonds, time warrants and notes which have a maturity of more than one year form date ofissuance. ..- I ill ~ [ . i ill "" I' .. !III ~ ~ II!I iIi.j c c ~ ~ ~ ~ ~ ~ ~ ~ ~---';'1-- - I I I :1 I I I I -I "I I I I I -I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT December 31,1996 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG-TERM DEBT Amount Available in Debt Service Funds Amount to be Provided for Retirement of Long-Term Debt and Absences TOTAL AVAILABLE AND TO BE PROVIDED GENERAL LONG-TERM DEBT PAYABLE Accounts Payable Accrued Items Bonds and Certificates Payable TOTAL GENERAL LONG-TERM DEBT PAYABLE ... $ 9,476,562 17,185,587 $ 26,662,149 $ 157,160 123,989 26,381,000 $ 26,662,149 81 SUPPLEMENTARY INFORMATION ,.. ~ '" !t,1 .. ~. ~ ~ w. ~ .. ~ ~ ~ w.i ~ ~ ~ ~ ~ III! ~ ~ . ~ .. ~ ~ ~ ~ ~ ~ ~ ~ ~-I ,I ~ I I I ~ I I I I I I I I ~ I ~ I ~ I ~ I j I LI i I .. ~- - ~~ Taxes Payable in 1996: Net Tax Capacity General Fund Bond Funds Watershed Levy CITY OF ANDOVER, MINNESOTA SCHEDULE OF TAX CAPACITY RATES AND LEVIES December 31, 1996 $ 12,019,964 Tax Capacity Net Rate Levy 0.168010 $ 2,158,738 0.025730 330,612 0.002230 13,395 0.195970 $ 2,502,745 82 i CITY OF ANDOVER, MINNESOTA 0 SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS a FOR TAX INCREMENT FINANCING DEVELOPMENT DISTRICT 1 -1 A TAX INCREMENT FINANCING DISTRICT December 31, 1996 Accounted Original for in Current Amount SOURCES OF FUNDS: Budget Prior Years Year Remaining Q Tax Increments $ 11,645,380 $ 2,423,850 $ 243,313 $ 8,978,217 Special Assessments 0 5,755 5,870 (11,625) a— State Credits 0 57,266 0 (57,266) Bond Proceeds 9,380,600 3,244,601 862,988 5,273,011 Land Sales 0 227,142 0 (227,142) �- Interest 97,470 229,675 360,643 (492,848) Miscellaneous 0 0 0 0 Total Sources of Funds 21,123,450 6,188,289 1,472,814 13,462,347 USES OF FUNDS: D Property Acquisition 9,399,040 3,685,427 1,747,037 3,966,576 R Administrative Costs 730,560 106,266 22,673 601,621 Bond Payments - 4 Principal 6,575,638 955,000 91,475 5,529,163 h Interest and Other 4,704,115 165,508 161,353 4,377,254 Total Uses of Funds 21,409,353 4,912,201 2,022,538 14,474,614 DISTRICT BALANCE (285,903) 1,276,088 — (549,724) (1,012,267) � I � Transfers to Other Funds 0 (9,868) 0 9,868 i FUNDS REMAINING (DEFICIT) $ (285,903) $ 1,266,220 $ (549,724) $ (1,002,399) a 83 � i I - CITY OF ANDOVER, MINNESOTA I SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS -.- FOR TAX INCREMENT FINANCING I DEVELOPMENT DISTRICT 1-2 A TAX INCREMENT FINANCING DISTRICT - December 31, 1996 I Accounted - Original for in Current Amount I Budget Prior Years Year Remaining SOURCES OF FUNDS: -- Tax Increments $ 5,125,771 $ 1,777,734 $ 595,890 $ 2,752,147 I Special Assessments 0 0 0 0 State Credits 0 277 0 (277) Bond Proceeds 12,338,900 5,993,994 1,139,305 5,205,60l I Land Sales 0 7,959 0 (7,959) Interest 4,500 197,671 16,630 (209,801) - Miscellaneous 0 136,778 28,300 (l65,078) I Total Sources of Funds 17,469,171 8,114,413 1,780,125 7,574,633 USES OF FUNDS: I Property Acquisition 11,211,335 1,517,576 1,471,706 8,222,053 Administrative Costs 498,785 59,822 55,527 383,436 .-- Bond Payments - I Principal 5,314,362 1,155,000 l23,525 4,035,837 Interest 3,612,464 821,511 169,133 2,621,820 Total Uses of Funds 20,636,946 3,553,909 1,819,891 15,263,146 I DISTRICT BALANCE (3,167,775) 4,560,504 (39,766) (7,688,513 ) I Transfers to Other Funds 0 0 0 0 FUNDS REMAINING I (DEFICIT) $ (3,167.775) $ 4,560,504 $ (39.766) . $ (7.688.513) I -- I - I I - I m 84 I ~ ~ c ~- c c-- c- c c- : C c- C 0- c-- Pr'. -..' [ 0--: Cl c: c: ~ ~-=j I I I Taxes Fiscal Ad I Year Valorem 1988 $ 713,219 $ I 1989 712,017 I 1990 911,255 1991 1,017,774 I 1992 1,107,808 1993 1,241,114 -I 1994 1,472,108 I 1995 1,810,213 1996 2,180,470 I I I I I -I I I I I ~ CITY OF ANDOVER, MINNESOTA GENERAL FUND REVENUE BY SOURCE Licenses and Intergovemmental Charges for Fines and Permits Revenue Services Forfeits 236,555 $ 559,246 $ 31,404 $ 45,049 $ 259,083 659,330 58,754 51,614 212,793 616,722 75,962 46,650 230,298 640,318 82,604 31,750 430,024 614,266 120,708 39,565 470,371 710,910 152,868 38,178 410,733 745,156 227,960 40,496 410,212 747,627 549,606 46,152 390,371 857,645 554,430 57,125 Other Revenue Total 84,680 $ 1,670,153 73,909 1,814,707 70,060 1,933,442 71,290 2,074,034 87,370 2,399,741 75,512 2,688,953 91,323 2,987,776 31,986 3,595,796 61,818 4,101,859 85 c CITY OF ANDOVER, MINNESOTA GENERAL FUND EXPENDITURES BY FUNCTION c Fiscal General Public Public Parks and Year Government Safety Works Sanitation Recreation Recycling 1988 $ 521,775 $ 496,710 $ 333,978 $ 12,030 $ 240,574 $ 0 1989 645,521 705,415 296,275 18,658 218,571 20,112 1990 593,778 754,914 307,046 29,168 261,449 39,567 1991 579,797 805,393 374,138 14,831 245,097 46,771 1992 672,936 908,312 442,176 28,976 204,267 39,622 1993 720,178 937,371 520,802 36,904 232,809 50,461 1994 804,726 970,174 625,805 51,522 294,158 49,574 1995 932,460 1,060,210 637,551 34,795 329,416 58,260 1996 1,068,585 1,320,680 947,472 60,517 455,517 55,170 c c c c c c c c c c c w c c c c ~ ~ -.-c=- f I I I Economic Development UnalIocated Total I $ 0 $ 136,209 $ 1,741,276 0 97,797 2,002,349 I 14,289 129,589 2,129,800 I 17,447 72,521 2,155,995 17,659 77,060 2,391,008 I 22,836 53,691 2,575,052 - I 21,916 86,278 2,904,153 22 93,546 3,146,260 I 0 154,085 4,062,026 I I I - I I - I - I - I I 86 - I 1 -------- ---- '" -- c ~ o ~ ~ ~ c c c c c c c c c c c c c c ___n - _n-c:- --"'~r- - I CITY OF ANDOVER, MINNESOTA I TAX LEVIES AND COLLECTIONS Percentage I 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 I 1986 $ 802,877 $ 784,514 97.71 % $ 18,558 $ 803,072 100.02 % 1987 880,048 862,018 97.95 19,185 881,203 100.13 I 1988 995,590 978,595 98.29 16,832 995,427 99.98 1989 1,006,409 987,289 98.10 13,439 1,000,728 99.44 I 1990 993,164 967,055 97.37 22,178 989,233 99.60 1991 1,079,510 1,054,361 97.67 21,936 1,076,297 99.70 I 1992 1,482,416 1,440,883 97.20 22,028 1,462,911 98.68 1993 1,588,431 1,556,622 98.00 31,536 1,588,158 99.98 I 1994 1,806,293 1,774,507 98.24 43,566 1,818,073 100.65 I 1995 2,139,278 2,114,587 98.85 44,084 2,158,671 100.91 1996 2,083,031 2,075,336 99.63 29,231 2,104,567 10 1.04 I SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Percentage I 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 I 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 I 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 I 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 I 1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34 I 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 I 1995 569,629 517,981 90.93 28,672 546,653 95.97 1996 573,477 531,081 92.61 28,594 559,675 97.59 I Note: Tax levy is net of amounts paid by the State of Minnesota through Homestead and Agricultural Credit Aid (HACA) and Equalization Aid. 87 I CITY OF ANDOVER, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Year Ended December 31, 1996 Federal Revenues CFDA Project Prior This Funding Source Number Time Period Reports Report U.S. Department ofHUD January 1, 1996 to Through Anoka County 14.228 December 31, 1996 $ 25,851 $ 84,283 U.S. Department of January 1,1996 to Justice - COPS Grant 16.710 December 31, 1996 0 30,000 TOTAL FEDERAL ASSISTANCE $ 25,851 $ 114,283 -----=-----=c c c c c ~ ~ C !I'\ ~ ~ ~ ~.! .. C P'\ .. ~ ~ III ~ ~ ~ ~ ~ W.I ~. ~ W I I I I I I I I _I I I I I I I - I I I - I 88 ~ ~ c "'. . ~ ~ ~ C m .. STATISTICAL INFORMATION ~ c w c c c c c c c ... I. c - - I- ~~ I - I - I 1 -I I 1 - 1 I - 1 1 -I 1 I I 1 1 - I -I -I CITY OF ANDOVER, MINNESOTA REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS April 29, 1997 Honorable Mayor and City Council 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, 1996, and have issued our report thereon dated April 29, 1997. Because the City does not maintain fixed records which provide complete accounting control over the quantities and costs of its general fixed assets, we issued a qualified opinion on the City's general purpose financial statements. 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, Minnesota, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and . judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 89 .. 4;r/M~/~~ KERN, DEWENTER, VIERE, LTD. c c c c c c c c c c c c c c c c In planning and performing our audit of the financial statements of the City of Andover, Minnesota, for the year ended December 31, 1996, 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 financial statements and not to provide an opinion on the internal control structure. 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 wider standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. 1. The City does not have adequate segregation of accounting duties due to a limited number of office employees. Management has determined that this weakness is not practical to correct. 2. The City does not maintain fixed asset records which provide complete accounting control over the quantities and costs of its general fixed assets. As a result, we issued a qualified opinion on the City's general purpose financial statements. 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 financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we do not believe the reportable conditions described above are material weaknesses. 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, Minnesota, in a separate letter dated April 29, 1997. This report is intended for the information of management and the City Council. However, this report is a matter of public record and its distribution is not limited. ~ .. 90 c ~ .. -~ -------',-:-1 -I -I -I "I ~I -I I I I -I I -I -I -I -I ~I -I -I 1 CITY OF ANDOVER, MINNESOTA SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS April 29, 1997 Honorable Mayor and City Council 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, 1996, and have issued our report thereon dated April 29, 1997. Because the City does not maintain fixed asset records which provide complete accounting control over the quantities and costs of its general fixed assets, we issued a qualified opinion on the City's general purpose financial statements. 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 financial statements are free of material misstatement and about whether the City of Andover, Minnesota, complied with laws and regulations, noncompliance with which would be material to a federal financial assistance program. In planning and performing our audit for the year ended December 31, 1996, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the financial statements in a separate report dated April 29, 1997. 91 '" The management of the City of Andover, Minnesota, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. c c ~ ~ c c 92 c c c c c o c o c o c c o c 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: ACCOUNTING CONTROLS: Activity Cycles - Treasury or financing Revenue/receipts Purchases/disbursements External financial reporting Payroll/personnel Financial Statement Captions - Cash and investments Receivables Inventory Fixed assets Accrued liabilities Debt Fund equity Accounting Applications - Billings Receivables Cash receipts Purchasing and receiving Cash disbursements Payroll Inventory control Fixed Assets General ledger :c-- -r:-;~-- - I I I cl - 1 1 1 I 1 I "I 1 <I 1 I I I I I ADDITIONAL CONTROLS USEI> TN AbMINISTERlNG FEDERAL PROGRAMS: General Requirements - Political activity Davis-Bacon Act Civil rights Cash management Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements Specific Requirements - Types of costs allowed or unallowed Matching, level of effort, or earmarking Special reporting requirements Special tests and provisions Claims for Advances and Reimbursements Amounts Claimed or Used for Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31,1996, the City of Andover, Minnesota, expended 74 percent of its total federal financial assistance under the following nonmajor federal financial assistance program: Community Development Block Grant. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effective- ness 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 and amounts claimed or used for matching that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City's ability to administer federal financial assis- tance programs in accordance with applicable laws and regulations. 1. The City does not have adequate segregation of accounting duties due to a limited number of office employees. Management has determined that this weakness is not practical to correct. 93 94 c c c ~ ~ o c c c ~ c c ~ c ~ ~ ~ ~ ~ [ 2. The City does not maintain fixed asset records which provide complete accounting control over the quantities and costs of its general fixed assets. As a result, we issued a qualified opinion on the City's geneml purpose financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe none of the reportable conditions described above are material weaknesses. We also noted other matters involving the internal control structure and its operation that we have reported to the management ofthe City of Andover, Minnesota, in a separate letter dated April 29, 1997. This report is intended for the information of management and the City Council. However, this report is a matter of public record and its distribution is not limited. /<-f)~~~/~' KERN, DEWENTER, VIERE, LTD. ~~~ j CITY OF ANDOVER, MINNESOTA SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS April 29, 1997 Honorable Mayor and City Council City of Andover Andover, 11innesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1996, and have issued our report thereon dated April 29, 1997. Because the City does not maintain fixed asset records which provide complete accounting control over the quantities and costs of its general fixed assets, we issued a qualified opinion on the City's general purpose financial statements. We have applied procedures to test the City's compliance with the following requirements applicable to its federal financial assistance program, which is identified ln the Schedule of Federal Financial Assistance for the year ended December 31, 1996. General Requirements - Political Activity Davis-Bacon Act Civil Rights Cash Management Federal Financial Reports Allowable Costs/Cost Principles Drug-Free Workplace Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on City's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 95 J;-.,~~~I ~/~, KERN, DEWENTER, VIERE, LTD. c c c c c ~ ~ ~ ~ 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 ofthis report, With respect to items not tested, nothing came to our attention that caused us to believe that City of Andover, Minnesota, had not complied, in all material respects, with those requirements. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the information of management and the City Council. However, this report is a matter of public record and its distribution is not limited. '" I: ! ... ~ ~ ~ .. 96 ~ ~ ~ .. ~ C [ [ - - - ~-----,;---,-- I -I 1 1 I 1 1 I I I 'I I I I I I I I I CITY OF ANDOVER, MINNESOTA SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS April 29, 1997 Honorable Mayor and City Council 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, 1996, and have issued our report thereon dated April 29, 1997. Because the City does not maintain fixed asset records which provide complete accounting control over the quantities and costs ofits general fixed assets, we issued a qualified opinion on the City's general purpose financial statements. In connection with our audit of the general purpose financial statements of the City of Andover, Minnesota, and with our consideration of the City's internal control structure used to administer federal financial assistance programs, as required by Office of Management and Budget 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 31,1996. 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; eligibility; matching level of effort; reporting; special tests and provisions and amounts claimed or used for matching that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that City of Andover, Minnesota, had not complied, in all material respects, with those requirements. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. 97 This report is intended for the information of management and the City Council. However, this report is a matter of public record and its distribution is not limited. c c ~ ~ ,&,/f~~~~/~ KERN, DEWENTER, VIERE, LTD. c c ~ . w. ~ ~ r .. ~ C ~ C t ~ ~ ~ 98 r MIl c -==-,---- 1 1 1 1 I I 1 I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND MINNESOTA STATUTES April 29, 1997 Honorable Mayor and City Council City of Andover Andover, Minnesota We have audited the general purpose financial statements ofthe City of Andover, Minnesota, for the year ended December 31, 1996, and have issued our report thereon dated April 29, 1997. Because the City does not maintain fixed asset records which provide complete accounting control over the quantities and costs of its general fixed assets, we issued a qualified opinion on the City's general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Sec. 6.65. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. General PUl:pose Financial Statements Compliance with laws, regulations, contracts, and grants applicable to the City of Andover, Minnesota, is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests ofthe City's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit ofthe financial 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 Government Auditing Standards. 99 ~ h/f~~~r#/. KERN, DEWENTER, VIERE, LTD. c c c ~ c c ~ ~.'; ~ ~ Legal Compliance 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 and other statutes as we considered necessary the circumstances. The results of our tests indicate that for the items tested the City compiled 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 came to our attention to indicate that the City had not compiled with such legal provisions. This report is intended for the information of management and the City Council. However, this report is a matter of public record and its distribution is not limited. ~ ~ ~ ~ [ III ~ 100 ~ ~ [ ~ [ ~l-- - I I -I -I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES CURRENT YEAR FINDINGS: None PRIOR YEAR FINDINGS: None 101 ~ . c ~, ~: W ~ .. ~ ~ ~ ~ .. ~ ~ ~ ~ [ ~ [ ~ L. C c! Ci Ci - ----- _. - - --- - T:=-, --- -