HomeMy WebLinkAbout1997 CAFR
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CITY OF ANDOVER, MINNESOTA
ANOKA COUNTY
AUDITED FINANCIAL STATEMENTS
As of
December 31,1997
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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .'. . . .
LRRWMO Fund ................................................
Drainage and Mapping Fund .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EDA General Fund ..............................................
Trail and Transportation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Septic Disposal Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Equipment Reserve Fund ...................................
Developer Sealcoating Fund .......................................
Oakwilt Suppression 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
(Continued)
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - (Continued)
Enterprise Funds -
Combining Balance Sheet ......................................... 63
Combining Statement of Revenues, Expenses and Changes in
Retained Earnings .............................................. 64
Combining Statement of Cash Flows ................................ 65
Comparative Balance Sheet - Water Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Statement of Revenues, Expenses and Changes in Retained Earnings-
Water Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Comparative Balance Sheet - Sewer Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Statement of Revenues, Expenses and Changes in Retained Earnings-
Sewer Fund ................................................... 69
Internal Service Funds -
Combining Balance Sheet ......................................... 70
Combining Statement of Revenues, Expenses and Changes in Retained
Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 71
Combining Statement of Cash Flows ................................ 72
Trust and Agency Funds -
Combining Balance Sheet ......................................... 73
Statement of Revenues, Expenditures and Changes in Fund Balance-
Administrative Expendable Trust Fund .............................. 74
Combining Statement of Changes in Assets and Liabilities - Agency Funds. . 75
General Fixed Assets Account Group -
Statement of Changes in General Fixed Assets. . . . . . . . . . . . . . . . . . . . . . . . . 76
General Long-Term Debt Account Group -
Statement of General Long-Term Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
SUPPLEMENTARY INFORMATION -
Schedule of Tax Capacity Rates and Levies .............................. 78
Schedule of Sources and Uses of Public Funds for Andover Tax Increment
Financing Development District 1-1 ................................... 79
Schedule of Sources and Uses of Public Funds for Andover Tax Increment
Financing Development District 1-2 ................................... 80
STATISTICAL INFORMATION -
General Fund Revenue by Source ...................................... 81
General Fund Expenditures by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Tax and Assessment Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
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CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
(Continued)
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL
CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS ................................
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA
STATUTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES . . . . . . . . . . . . . . .
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Elected Officials
J.E. McKelvey
Bonnie Dehn
John Kunza
Mike Knight
Ken Orttel
Appointed Officials
Richard Fursman
Jean McGann
Shirley Clinton
Victoria V olk
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CITY OF ANDOVER, MINNESOTA
ELECTED OFFICIALS AND ADMINISTRATION
December 31, 1997
Position
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
Finance Director
Treasurer
Clerk
Year Term of
Office Expires
1998
1998
1998
2000
2000
Appointed
Appointed
Appointed
Appointed
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Alvin M. Kern
Duane N. DeWenter
Loren M. Viere
Gerald A. Stover
Keith W. Julson
Dwayne B. Dockendorf
David H. Hinnenkamp
Christopher P. Shorba
Kern, DeWenter, Viere, Ltd.
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
March 5, 1998
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, 1997, 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 ofthe 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 arnounts 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,
1997.
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
of the City of Andover, Minnesota, as of December 31, 1997, and the results of its operations and
cash flows of its proprietary fund types for the year then ended in conformity with generally
accepted accounting principles.
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220 Park Avenue South P.D. Box 1304 St. Cloud, MN 56302
320-251-7010 FAX 320-251-1784
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City of Andover
March 5,1998
Page 2
In accordance with Government Auditing Standards, we have also issued our report dated
March 5,1998 on our consideration ofthe City of Andover's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts
and grants.
Our audit was made for the purpose offorming 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 are presented for purposes of additional
analysis and are not a required part of the general purpose financial statements of the 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.
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KERN, DEWENTER, VIERE, LTD.
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CITY OF ANDOVER, MINNESOTA C
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS C
December 31, 1997
Governmental Fund Types C
Special Debt Capital
ASSETS AND OTHER DEBITS General Revenue Service Projects C
Assets:
Cash and Investments (Including Cash
Equivalents) $ 1,738,145 $ 696,638 $ 5,730,246 $ 7,656,425
Cash with Trustee 0 0 0 0 C
Taxes Receivable -
Delinquent 42,303 375 7,560 0
Special Assessments Receivable -
Deferred 48 0 3,498,902 2,066,499 C
Delinquent .259 0 11,154 16,409
Accounts/Loans Receivable 35,107 0 0 144,230
Interest Receivable 37,408 19,562 165,427 403,929 C
Due from Other Governmental Units 195,508 189 19,922 195,226
Inventory 36,557 0 0 0
Prepaid Items 4,381 0 0 0
Property, Plant and Equipment - Net 0 0 0 0 C
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 C
TOTAL ASSETS AND OTHER DEBITS $ 2,089,716 $ 716,764 $ 9.433.21 I $ 10.482,718
LIABILITIES, EQUITY AND OTHER CREDITS ~
Liabilities: I.J
Accounts Payable $ 113,336 $ 174 $ 10,729 $ 491,219
Accrued Items 54,958 709 0 0
Contracts Payable 0 0 0 458,146 C
Due to Other Governmental Units 32,065 0 0 0
Deposits Payable 0 0 0 0
Due to Employees 0 0 0 0 C
Deferred Revenue 42,610 268,618 3,517,616 2,215,916
Special Assessments on City Property 0 0 0 0
Bonds and Certificates Payable 0 0 0 0
Total Liabilities 242,969 269,501 3,528,345 3,165,281 C
Equity and Other Credits:
Investment in General Fixed Assets 0 0 0 0
Contributed Capital 0 0 0 0 C
Retained Earnings -
Reserved 0 0 0 0
Unreserved 0 0 0 0
Fund Balance (Deficit) - U
Reserved 40,938 0 6,080,923 0
Unreserved -
Designated 1,018,687 285,131 0 8,540,211 C
Undesignated 787,122 162,132 (176,057) (1,222,774)
Total Equity and Other Credits 1,846,747 447,263 5.904,866 7,317,437
TOTAL LIABILITIES, EQUITY AND U
OTHER CREDITS $ 2.089,716 $ 716.764 $ 9.433.211 $ 10.482,718
The notes to the financial statements are an int<:gral part of this statement. C
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I Proprietary Fiduciary
Fund Types Fund Type Account Groups
General General Totals
Internal Trust and Fixed Long-Term (Memorandum Only)
I Enterprise Service Agency Assets Debt 1997 1996
$ 1,528,053 $ 98,242 $ 429,042 $ 0 $ 0 $ 17,876,791 $ 18,237,217
I 0 0 307,954 0 0 307,954 192,126
0 0 0 0 0 50,238 49,195
I 8,462 0 0 0 0 5,573,911 9,278,838
4,352 0 0 0 0 32,174 55,781
398,098 173 0 0 0 577,608 825,713
I 53,777 3,191 1,156 0 0 684,450 589,006
13,362 0 0 0 0 424,207 150,526
12,690 15,696 0 0 0 64,943 69,118
45,959 465 0 0 0 50,805 85,581
I 20,176,207 0 0 11,442,464 0 31,618,671 31,215,968
0 0 0 0 5,904,866 5,904,866 9,476,562
I 0 0 0 0 25,571,653 25,571,653 17,185,587
$ 22,240,960 $ 117,767 $ 738,152 $ 11.442.464 $ 31.476,519 $ 88,738,271 $ 87,411,218
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$ 23,460 $ 3,907 $ 23,212 $ 0 $ 0 $ 666,037 $ 768,339
I 30,582 1,677 0 0 156,468 244,394 201,700
, 0 0 0 0 0 458,146 414,980
634 0 0 0 0 32,699 3,599
0 0 373.692 0 0 373,692 345,840
I 0 6,747 307,954 0 0 314,701 196,576
2,032 0 0 0 0 6,046,792 9,722,612
0 0 0 0 145,051 145,051 157,160
0 0 0 0 31,175,000 31,175,000 26,381,000
I 56,708 12,331 704,858 0 31,476,519 39,456,512 38,191,806
0 0 0 11,442,464 0 11,442,464 10,538,020
I 20,020,983 0 0 0 0 20,020,983 20,496,163
0 0 0 0 0 0 44,307
2,163,269 105,436 0 0 0 2,268,705 1,906,544
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0 0 0 0 0 6,121,861 9,656,687
I 0 0 33,294 0 0 9,877,323 10,004,30 I
0 0 0 0 0 (449,577) (3,426,610)
22, I 84,252 105,436 33,294 11,442,464 0 49,281,759 49,219,412
I $ 22.240,960 $ 117,767 $ 738,152 $ 11.442,464 $ 31.476,519 $ 88,738,271 $ 87 ,411 ,218
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CITY OF ANDOVER, MINNESOTA C
COMBINED STATEMENT OF REVENUES, EXPENDITURES, C
AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUNDS
AND EXPENDABLE TRUST FUNDS
Year Ended December 31, 1997 0
Governmental Fund Types
Special Debt C
General Revenue Service
REVENUES:
General Property Taxes and Tax Increments $ 2,383,965 $ 14,119 $ 1,255,288 C
Special Assessments 0 0 2,537,182
Licenses and Permits 456,413 0 0
Intergovernmental 988,814 42,806 183,573 C
Charges for Services 578,221 30,873 0
Fines 48,800 0 0
Miscellaneous 258,087 113,370 280,374
Total Revenues 4,714,300 201,168 4,256,417 C
EXPENDITURES:
Current - C
General Government 1,252,047 0 0
Public Safety 1,409,087 0 0
Public Works 1,044,183 78,040 0 C
Sanitation 95,632 0 0
Parks and Recreation 383,059 0 0
Recycling 62,281 0 0 C
Economic Development 0 73,993 0
Miscellaneous 212,503 0 0
Capital Outlay 0 83,967 0 C
Debt Service 0 0 9,253,963
Total Expenditures 4,458,792 236,000 9,253,963
EXCESS OF REVENUES OVER (UNDER) C
EXPENDITURES 255,508 (34,832) (4,997,546)
OTHER FINANCING SOURCES (USES): C
Operating Transfers In 317,200 107,501 658,052
Operating Transfers Out (6,000) (269,931) 0
Bond Proceeds 0 0 675,645 C
Proceeds from Sale of Property 407 43,835 0
Total Other Financing Sources (Uses) 311,607 (118,595) 1,333,697
EXCESS OF REVENUES AND OTHER C
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES 567,115 (153,427) (3,663,849) C
FUND BALANCE - January 1 1,279,632 600,690 9,476,562
RESIDUAL EQUITY TRANSFER 0 0 92,153 C
FUND BALANCE - December 31 $ 1,846,747 $ 447,263 $ 5,904,866 C
The notes to the financial statements are an integral part of this statement.
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I Fiduciary
Fund Type Totals
I Capital Expendable (Memorandum Only)
Projects Trust 1997 1996
$ 0 $ 0 $ 3,653,372 $ 3,365,593
I 1,275,839 0 3,813,021 3,434,681
0 0 456,413 390,327
913,266 0 2,128,459 1,766,958
I 0 0 609,094 468,915
0 0 48,800 57,125
1,594,912 1,859 2,248,602 1,958,767
I 3,784,017 1,859 12,957,761 11,442,366
I 0 0 1,252,047 1,068,585
0 0 1,409,087 1,320,680
I 0 0 1,122,223 997,867
0 0 95,632 60,517
0 0 383,059 463,613
I 0 0 62,281 55,170
0 0 73,993 83,108
0 0 212,503 154,085
I 12,093,109 0 12,177,076 7,337,334
0 0 9,253,963 4,950,242
12,093,109 0 26,041,864 16,491,201
I (8,309,092) 1,859 (13,084,103) (5,048,835)
I 5,651,653 0 6,734,406 2,164,642
(6,252,475) (71,000) (6,599,406) (2,112,012)
I 11,544,445 0 12,220,090 3,785,713
0 0 44,242 33,782
10,943,623 (71,000) 12,399,332 3,872,125
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I 2,634,531 (69,141) (684,771) (1,176,710)
4,775,059 102,435 16,234,378 17,376,014
I (92,153) 0 0 35,074
I $ 7,317,437 $ 33,294 $ 15,549,607 $ 16,234,378
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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, 1997
C
General Fund Special Revenue Funds C
Over Over
(Under) (Under)
Budget Actual Budget Budget Actual Budget
REVENUES: 0
General Property Taxes and Tax Increments $ 2,412,301 $ 2,383,965 $ (28,336) $ 14,090 $ 14,119 $ 29
Special Assessments 0 0 0 0 0 0
Licenses and Permits 371,255 456,413 85,158 0 0 0 C
Intergovernmental 979.890 988,814 8,924 2.539 42,806 40,267
Charges for Services 478,650 578,221 99,571 54,725 30,873 (23,852)
Fines 39.100 48,800 9,700 0 0 0 C
Miscellaneous 210,803 258,087 47,284 81,705 113,370 31,665
Total Revenues 4,491.999 4,714,300 222.301 153,059 201,168 48,109
EXPENDITURES: C
Current -
General Government 1,385,591 1.252,047 (133.544) 0 0 0
Public Safety 1,477,603 1,409,087 (68,516) 0 0 0 C
Public Works 1,103,133 1.044,183 (58.950) 85,971 78,040 (7,931)
Sanitation 147,054 95,632 (51,422) 0 0 0
Parks and Recreation 410,335 383,059 (27.276) 0 0 0
Recycl ing 59,744 62,281 2,537 0 0 0 U
Economic Development 0 0 0 82,674 73,993 (8,681)
Miscellaneous 239,639 212,503 (27,136) 0 0 0
Capital Outlay 0 0 0 109,000 83,967 (25,033) C
Debt Service 0 0 0 0 0 0
Total Expenditures 4,823,099 4,458,792 (364,307) 277,645 236.000 (41,645)
EXCESS OF REVENUES OVER (UNDER) C
EXPENDITURES (331,100) 255,508 586,608 (124,586) (34,832) 89,754
OTHER FINANCING SOURCES (USES): C
Operating Transfers In 337,100 317,200 (19,900) 364,800 107,50 I (257,299)
Operating Transfers Out (6,000) (6,000) 0 (246,200) (269,931 ) (23,731)
Bond Proceeds 0 0 0 0 0 0 C
Proceeds from Sale of Property 0 407 407 2.974 43,835 40,861
Total Other Financing Sources (Uses) 331,100 311,607 (19,493) 121,574 (118,595) (240,169)
EXCESS OF REVENUES AND OTHER U
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES $ 0 567,115 $ 567.115 $ 13.012) ( 153,427) $ (50415)
FUND BALANCE - January 1 1,279.632 600,690 C
RESIDUAL EQUITY TRANSFER 0 0
FUND BALANCE - December 31 $ 1.846747 $ 447 263 C
The notes to the financial statements are an integral part of this statement. 0
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Totals
I Debt Service Funds (Memorandum Only)
Over Over
(Under) (Under)
Budget Actual Budget Budget Actual Budget
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$ 1,115,675 $ 1,255,288 $ 139,613 $ 3,542,066 $ 3,653,372 $ 111,306
3,014,440 2,537,182 (477,258) 3,014,440 2,537,182 (477,258)
I 0 0 0 371,255 456,413 85,158
195,099 183,573 (11,526) 1,177,528 1,215,193 37,665
0 0 0 533,375 609,094 75,719
I 0 0 0 39,100 48,800 9,700
409,600 280,374 (129,226) 702,108 651,831 (50,277)
4,734,814 4,256,417 (478,397) 9,379,872 9,171,885 (207,987)
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0 0 0 1,385,591 1,252,047 (133,544)
I 0 0 0 1,477,603 1,409,087 (68,516)
0 0 0 1,189,104 1,122,223 (66,881)
0 0 0 147,054 95,632 (51,422)
0 0 0 410,335 383,059 (27,276)
I 0 0 0 59,744 62,281 2,537
0 0 0 82,674 73,993 (8,681)
0 0 0 239,639 212,503 (27,136)
I 0 0 0 109,000 83,967 (25,033)
7,630,819 9,253,963 1,623,144 7,630,819 9,253,963 1,623,144
7,630,819 9,253,963 1,623,144 12,731,563 4,694,792 1,217,192
I (2,896,005) (4,997,546) (2,101,541) (3,351,691) (4,776,870) (1,425,179)
I 0 658,052 658,052 701,900 1,082,753 380,853
0 0 0 (252,200) (275,931 ) (23,731)
I 0 675,645 675,645 0 675,645 675,645
0 0 0 2,974 44,242 41,268
0 1,333,697 1,333,697 452,674 1,526,709 1,074,035
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$ (2 896,005) (3.663,849) $ (767844) $ (2899,017) (3,250,161) $ (351.144)
I 9,476,562 11,356,884
92,153 92,153
I $ 5 904,866 $ 8,198,876
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CITY OF ANDOVER, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUNDS
Year Ended December 3 I, 1997
With Comparative Totals for the Year Ended December 3 I, 1996
Enterprise
Internal
Service
OPERATING REVENUES:
User Charges
Meters
Permit Fees
Penalties
Other
Total Operating Revenues
1,491,907 $
37,180
12,082
24,314
454
1,565,937
373,283 $
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OPERATING EXPENSES:
Personal Services
Supplies
Other Services and Charges
Disposal Charges
Depreciation
Total Operating Expenses
339,738
49,476
201,064
518,571
603,269
1,712,118
108,619
175,613
57,884
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OPERATING INCOME (LOSS)
(146,181)
31,167
NON-OPERATING REVENUES:
Interest on Investments
Other
Total Non-Operating Revenues
87,673
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5,015
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INCOME (LOSS) BEFORE OPERATING
TRANSFERS
(58,508)
36,182
Operating Transfer In
Operating Transfer Out
Total Operating Transfers
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(141,000)
(141,000)
(199,508)
42,182
6,000
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NET INCOME (LOSS)
Add: Depreciation Charged Against
Contributed Capital
475,180
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RETAINED EARNINGS - January I
1,887,597
63,254
RESIDUAL EQUITY TRANSFER
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RETAINED EARNINGS - December 31
$ 2,163,269 $
105,436 $ 2,268,705 $
The notes to the financial statements are an integral part of this statement.
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Totals
(Memorandum Only)
1997 1996
1,865,190 $
37,180
12,082
24,314
454
1,939,220
448,357
225,089
258,948
518,571
603,269
2,054,234
(115,014)
92,688
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92,688
(22,326)
6,000
(141,000)
(135,000)
(157,326)
475,180
1,950,851
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1,712,524
38,803
12,686
19,408
131
1,783,552
376,613
202,549
229,665
483,132
583,141
1,875,100
(91,548)
72,279
216
72,495
(19,053)
70,000
(122,630)
(52,630)
(71,683)
468,482
1,589,126
(35,074)
1,950,851
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I CITY OF ANDOVER, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS-
ALL PROPRIETARY FUND TYPES
I Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
I Totals
Internal (Memorandum Only)
I Enterprise Service 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income (Loss) $ (146,181) $ 31,167 $ (115,014) $ (91,548)
I Adjustments to Reconcile Operating Income to
Net Cash Provided (Used) by Operating Activities:
Depreciation 603,269 0 603,269 583,141
I Other Revenues 0 0 0 216
Change in Current Assets and Liabilities:
Decrease in Special Assessments 901 0 901 19
I (Increase) in Accounts Receivable 202,998 720 203,718 (234,371)
(Increase) Decrease in Due From Other
Government Units 2,415 0 2,415 (15,604)
I (Increase) Decrease in Inventory (961) 3,965 3,004 6,724
(Increase) Decrease in Prepaid Items 2,788 97 2,885 (1,784)
Increase (Decrease) in Accounts Payable 3,044 (11,346) (8,302) 10,617
I Increase in Accrued Items 10,425 2,231 12,656 13,439
(Decrease) in Due to Other Governmental Units (2,004) 0 (2,004) (41)
(Decrease) in Deferred Revenue (900) 0 (900) (19)
I Total Adjustments 821,975 (4,333) 817,642 362,337
Net Cash Provided by Operating Activities 675,794 26,834 702,628 270,789
I CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
I Transfers From Other Funds 0 6,000 6,000 39,500
Transfers To Other Funds (141 ,000) 0 (141,000) 027,204)
Net Cash Used by Noncapital Financing Activities (141,000) 6,000 (135,000) (87,704)
I CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of Fixed Assets (101,528) 0 (10 I ,528) (75,432)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 63,691 3,199 66,890 61,654
I NET INCREASE IN CASH AND CASH EQUIVALENTS 496,957 36,033 532,990 169,307
I CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,031,096 62,209 1,093,305 923,998
CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,528,053 $ 98,242 $ 1,626,295 $ 1,093,305
I The notes to the financial statements are an integral part of this statement.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,1997
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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A. Accounting Policies ofthe City
The accounting policies ofthe 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.
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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 ifit were
part of the primary government because its governing body is substantively the same as the
governing body ofthe primary government.
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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 (lfthe City because of the significance oftheir operational or financial
relationships with the: City.
The City is considered financially accountable for a component unit if it appoints a voting
majority of the OrgarLization'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, it has been determined
the City has one blended component unit.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C, Fund Accounting
The accounts ofthe 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,
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,
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).
Proprietary Funds
Entet:prise 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,
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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C. FundAccounting (Continued)
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Internal Service Funds - Intemal 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.
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Expendable Trust FWlds 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.
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Fiduciary Funds
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,
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D, Measurement Focus. Fixed Assets and Long-Term Liabilities
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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 CUlTent 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,
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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.
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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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(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 concemed only with the measurement of
financial position, They are not involved with measurement of results of operations.
Because of their 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 financial statements. Basis of accounting relates to the
timing ofthe 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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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E, Basis of Accounting (Continued)
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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 arnounts have been accumulated in the debt service fund for payments to be made early
in the following year..
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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 accruaJ[ include licenses and permits, fees and miscellaneous revenues; such
revenues are recorded only as received because they are not measurable until collected.
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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 genera1long-term debt, which are recognized when due.
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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 servke receivables are recorded at year end.
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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 CUlTent 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.
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F, Budgetary Accounting
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.
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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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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H. Cash and Investments (Including Cash Equivalents) (See Note 3)
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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Investments are carried at cost which approximates market. Any premiums or discounts are
amortized over the maturity of the investment.
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Investments for Deferred Compensation Plans titled "Cash with Trustee" are stated at market
value,
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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:
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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.
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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,
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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),
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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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(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. 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 eamings 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 month of December
and it 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,
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N, Revenues. Expenditures and Expenses (Continued)
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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, Such taxes become a lien on the following January 1.
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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 also collects all special assessments, ex~ept for
certain prepayments paid directly to the City,
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The County Auditor tums over a list of taxes to be collected on each parcel of property to
the County Treasurer in January of each year,
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The County Treasurer ~ollects 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.
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Property owners are required to pay one-half of their real estate taxes due by May 15 and
the balance by October 15,
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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.
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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 eollections of taxes 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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N, 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
Proprietary fund types recognize expenses when they are incurred,
0, 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.
p, 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.
Q, Total Columns on General Pm:pose Statements
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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R, Reclassifications
Certain 1996 amounts have been reclassified to conform to the presentation used in the 1997
financial statements. Such reclassifications had no effect on net operating results or total
fund equity as previously reported,
NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY
A. Fund Deficits
The following funds had deficit fund balances at December 31,1997:
Debt Service Funds -
G.O. Improvement Bonds of 1985B
G.O, Improvement Bonds of 1986A
G,O, Improvement Bonds of1989
Capital Projects Funds-
Storm Sewer Project
Unfinanced Projects
State Aid Revolving Projects
$ 20,141
118,292
37,624
122,472
904,108
196,194
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 31,1997:
Appropriations Expenditures
Special Revenue Fund:
Oak Wilt Suppression
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$ 34,306
$
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(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 of this 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.
Bank Accounts
Category
1 -L ~
$ 803.490 $ 0 $ 0 $ 803.490 $ 532.154
Bank
Balance
Carrying
Amount
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 of the 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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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A, Assets (Continued)
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1, Cash and Investments (Including Cash Equivalents) (Continued)
b, Investments - (Continued)
Total Investments
Category Carrying Market
1 -L -L Amount Value
$ 1,303,620 $ 0 $ 0 $ 1,303,620 $ 1,366,118
913,545 0 0 913,545 896,936
8,596,727 0 0 8,596,727 9,249,436
3.074.760 -.n -.n 3.074.760 3.098.220
$ 13.888.652 $ 0 $ 0 13,888,652 14,610,710
2,393,505 2,393,505
1,061,830 1,061,830
532,154 532,154
650 650
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Category 3 - Uninsured and unregistered, with securities held by the counterparty, or
by its trust department or agent but not in the City's name,
Negotiable CD's
State and Local
Government Securities
U.S. Government
Securities
Commercial Paper
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Investment Pool
Open End Mutual Fund
Total Deposits
(Note 3 A,1.a.)
Petty Cash
Total Cash and
Investments
(Including Cash
Equivalents)
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Deferred Compensa.tion
(Note 3 A.2.)
$ 307.954 $ 307.954
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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 ofthe City, subject only to the rights of the claims ofthe 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 ofthe 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,
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 S 125 ofthe
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.
22
CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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Net Fixed Assets
Water Sewer Total
$ 621,171 $ 147,813 $ 768,984
931,860 0 931,860
9,861,744 13,897,294 23,759,038
(2.198.501) (3.085.174) (5.283.675)
$ 9.216.274 $ 10.959.933 $ 20.176.207
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A. Assets (Continued)
3, Flexible Benefit Plan (Continued)
All assets of the plan are held by the City. The plan is administered by the City for child
care, out-of-pocket medical expense reimbursements, and qualifying insurance premiums.
All plan property and income attributable to that property is solely the property of the
City, subject to the claims of the City's general creditors. Participants' rights under the
plan are equal to those of general creditors of the City in an amount equal to the eligible
health care and de:pendent 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
1-1-97 Additions Disposals 12-31-97
Land $ 3,948,835 $ 21,915 $ 0 $ 3,970,750
Buildings and
Improvements 2,685,704 240,947 200 2,926,451
Furniture and Equipment 592,775 153,360 870 745,265
Machinery and Equipment 3.310.706 489.292 ~ 3.799.998
Total General
Fixed Assets $ 10.538.020 $ 905.514 $ 1.070 $ 11.442.464
A summary of proprietary fund type fixed assets at December 31, 1997 is as follows:
Furniture and Equipment
Machinery
Collection and Distribution
System
Accumulated Depreciation
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A, Assets (Continued)
5. Loans Receivable
As part of a development agreement entered into with a private developer in May, 1989,
the City received a promissory note for $ 243,520. The note is to reimburse the City for
the fiscal disparities' contributions the City lost due to the establishment of a tax
increment financing district for the development project. The note bears an interest rate
of 5,50% and calls for 180 equal monthly payments to be made to the City through
August, 2003, At December 31,1997, the remaining principal due of$ 133,008 is offset
by deferred revenue as it is not available to finance current activities.
B. Liabilities
1. Defined Benefit Pension Plans - Statewide
a, Plan Description
All full-time and certain part-time employees ofthe City of Andover are covered by
defined benefit plans administered by the Public Employees Retirement Association
of Minnesota (PERA), PERA administers the Public Employees Retirement Fund
(PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-
sharing, multiple-employer retirement plans, These plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356,
PERF members belong to either the Coordinated Plan or the Basic Plan, Coordinated
Plan members are covered by Social Security and Basic Plan members are not. All
new members must participate in the Coordinated Plan, All police officers, fire-
fighters and peace officers who qualify for membership by statute are covered by the
PEPFF,
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 highest average salary for any five successive years
of allowable service, age, and years of credit at termination of service.
24
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
a. Plan Description (Continued)
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan
members. The retiring member receives the higher of a step-rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2), Under Method 1, the
annuity accrual rate for a Basic Plan member who retires before July 1,1997 is 2
percent of average salary for each of the first 10 years of service and 2.5 percent for
each remaining year, The annuity accrual rate for Basic members who retire on or
after July 1, 1997 is 2.2 percent of average salary for each of the first 10 years of
service and 2,7 percent for each remaining year, For a Coordinated Plan member who
retires before July I, 1997, the annuity accrual rate is I percent of average salary for
each of the first 10 years and 1.5 percent for each remaining year, For Coordinated
members who retire on or after July 1,1997, the annuity accrual rates increase by 0.2
percent (to 1.2 percent of average salary for each ofthe first 10 years and 1.7 percent
for each remaining year), Under Method 2, the annuity accrual rate is 2,5 percent of
average salary for Basic Plan members and 1.5 percent for Coordinated Plan members
who retire before July 1, 1997, Annuity accrual rates increase 0,2 percent for
members who retire on or after July I, 1997, For PEPFF members, the annuity
accrual rate is 2,65 percent for each year of service for members retiring before
July 1, 1997, Effective July 1, 1997, the annuity accrual rate is increased to 3.0
percent. For all PEPFF members and for PERF members whose annuity is calculated
using Method 1, a full annuity is available when age plus years of service equal 90, A
reduced retin:ment 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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
a, Plan Description (Continued)
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,
PERA issues a publicly available financial report that includes financial statements
and required supplementary information for PERF and PEPFF. That report may be
obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102
or by calling (612) 296-7460 or 1-800-652-9026,
b, Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions, These statutes are established and amended by the state legislature,
The City makes annual contributions to the pension plans equal to the amount
required by state statutes. PERF Basic Plan members and Coordinated Plan members
are required to contribute 8,23 percent and 4,23 percent, respectively, of their annual
covered salary, PEPFF members are required to contribute 7.60 percent oftheir
annual covered salary, The City of Andover is required to contribute the following
percentages of annual covered payroll: 10,73 percent for Basic Plan PERF members,
4.48 percent for Coordinated Plan PERF members, and 11.40 percent for PEPFF
members, The City's contributions to the Public Employees Retirement Fund for the
years ended December 30, 1997, 1996, and 1995 were $ 67,050, $ 58,310, and
$ 51,435, respectively, The City's contributions to the Public Employees Police and
Fire Fund for the years ended December 31, 1997, 1996, and 1995 were $ 5,453,
$ 5,052, and $ 3,554, respectively, The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
26
CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(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 ~ 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 TI)r the year ended December 31, 1997 was $ 85,599, The City's total
payroll was $ 1,544,489,
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 ofthe 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 membe,r ofthe municipal fire department to which the Association is
associated, and has been a member of the Relief Association for at least 10 years prior
to retirement after age 50, is entitled to a service pension upon retirement.
The service pension prescribed by the Association's bylaws is a lump sum settlement
equal to the amount in the individual member's account at the time of retirement. The
individual member accounts are credited with an equal share of: any fire state-aid
received by the Association, any municipal contributions to the Association, and any
other assets of the Association's Special Pension Fund,
The bylaws of the Association also provide for a reduced service pension for a retiring
member who has completed fewer than 20 years of service, The reduced pension,
available to members with 10 years of service, shall be equal to 60% of the pension as
prescribed by the bylaws, This percentage increases 4% per year so that at 20 years of
service, the full amount prescribed is paid,
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(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 ofthe Association who has completed 20 or more years of active service
with the fire department prior to reaching age 50, has the right to retire from the
department without forfeiting the right to a service pension, The member shall be
placed on the deferred pension roll. Upon reaching age 50, the member may apply for
the standard service pension as described above. The Association shall pay interest
on the deferred service pension during the period of deferral. The interest rate will be
compounded annually, at the rate actually earned on the assets of the Special Pension
Fund, not to exceed 5% per year,
An active member ofthe Association who becomes disabled to the extent that a
physician shall certify that such disability will permanently prevent the member from
performing his duties in the Andover Fire Department, is entitled to a disability
pension equal to the balance in the member's account after 100 days of disability, If a
member who has received such a disability pension should subsequently recover and
return to active duty in the Andover Fire Department, any amount paid to him as a
disability pension shall be deducted from his service pension accrued at the time of
such disability,
Upon the death of any member of the Association who is in good standing at the time
of death, the Association shall pay the member's spouse, children, or estate the
balance of the member's account at the date of payment.
The City of Andover has the power to levy property taxes at the direction and for the
benefit 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.
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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B. Liabilities (Continued)
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Association (Continued)
In 1997, the City contributed $ 86,525 to the Association, consisting of$ 54,275 state
aid and $ 32,250 fulfilling the City's $ 750 per member contribution obligation for the
year ended December 31,1997. The City's contribution represents 37.7% of covered
payroll.
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c, Contributions Required and Contributions Made (Continued)
3, Deferred Revenues
Deferred revenues at December 31,1997 are summarized below:
Special Debt Capital
General Revenue Service Proiects Entel;prise Total
Taxes Receivable -
Delinquent $ 42,303 $ 375 $ 7,560 $ 0 $ 0 $ 50,238
Special Assessments
Receivable -
Deferred 48 0 3,498,902 2,066,499 0 5,565,449
Delinquent 259 0 11,154 16,409 0 27,822
Loans Receivable 0 0 0 133,008 0 133,008
Deposits and Other ~ 268.243 0 0 2.032 270275
Total $ 42.610 $ 268.618 $ 3.517.616 $ 2.215 916 . $ 2 032 $ 6.046.792
4, Long-Term Debt
The following is a summary oflong-term debt transactions ofthe City for the year ended
December 31, 1997:
Balance Balance
Januarv 1. 1997 Additions Deletions December 31. 1997
General Obligation Bonds $ 1,250,000 $ 0 $ 250,000 $ 1,000,000
General Obligation Revenue Bonds 0 2,350,000 0 2,350,000
Special Assessment Bonds 15,420,000 10,065,000 6,975,000 18,510,000
Tax Increment Bonds 9,110,000 0 280,000 8,830,000
Certificates of Indebtedness 601,000 0 116,000 485,000
Assessments on City Property 157,160 0 12,109 145,051
Compensated Absences Payable 123.989 32.479 0 156.468
$ 26.662.149 $ 12.447479 $ 7.633.109 $ 31.476.519
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CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
4. Long-Term Debt (Continued)
Bonds payable at December 31,1997 are comprised of the following issues:
Original
Interest Rate Issue Date Maturitv Date Issue Retired Outstandinl!
General Obligation Bonds:
G.O. Fire Station Bond of I991A 6.10-6,50% 07-01-91 07-01-01 $ 2,500,000 $ 1,500,000 $ 1,000,000
General Obligation Bonds:
Public Project Revenue Bonds
of 1997 4.50-5,90% 09-01-97 12-01-16 2,350,000 0 2,350,000
Special Assessment Bonds:
G.O. Improvement Bonds of
Series 1977A 5.00% 02-01-77 01-01-06 1,215,000 690,000 525,000
G.O. Improvement Bonds of
1978 6.00% 11-01-78 02-01-99 270,000 230,000 40,000
G.O. State-Aid Street Bonds
of1988 6.80% 08-01-88 08-01-98 500,000 450,000 50,000
G.O. Improvement Bonds of
Series 1993A 4.00-4.75% 08-01-93 08-01-03 3,650,000 1,460,000 2,190,000
G.O, Improvement Bonds of
Series 1994C 5.05-5.75% 10-01-94 02-01-06 1,140,000 115,000 1,025,000
G.O. Improvement Bonds of
1995A 4.85-5.30% 07-01-95 02-01-06 2,605,000 205,000 2,400,000
Refunding Bonds of Series
1995B 4.65-4.85% 07-01c95 08-01-00 825,000 380,000 445,000
G.O, Crossover Refunding Bond
of 1996 4.15-4.50% 06-01-96 08-01-01 1,220,000 0 1,220,000
G.O. Improvement Bonds of 1996 4.15-5.00% 06-01-96 08-01-06 600,000 50,000 550,000
G.O. Improvement Bonds of
Series 1997A 4.20-4.80% 05-01-97 12-01-02 3,120,000 0 3,120,000
G.O. Refunding Bonds of 1997 4.20-4.50% 06-01-97 08-01-00 630,000 0 630,000
G.O. Improvement Bonds of
Series 1997B 3.90-4.70% 07-01-97 12-01-05 6.315.000 0 6.315.000
Total Special Assessment
Bonds 22,090,000 3,580,000 18,510,000
30
CITY OF ANDOVER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1997
(Continued)
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NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
4, Long-Term Debt (Continued)
Original
Interest Rate Issue Date Maturitv Date Issue Retired Outstanding
Tax Increment Bonds:
G.O, Tax Increment Bonds of
Series 1993B 4,00-5,00% 08-01-93 08-01-03 $ 520,000 $ 200,000 $ 320,000
G.O. Tax Increment Refunding
Bonds of Series 1994B 6.97-7.87% 05-01-94 05-01-04 885,000 270,000 615,000
G.O. Tax Increment Bonds of
Series 1995D 4.50-5.60% 10-01-95 02-01-13 6,055,000 175,000 5,880,000
G.O. Tax Increment Bonds of
1996 4.75-5.40% 06-01-96 08-01-12 2.055.000 40.000 2.015.000
Total Tax Increment Bonds 9,515,000 685,000 8,830,000
Certificates of Indebtedness:
I 994A Certificate ofIndebtedness 4.05% 03-01-94 03-01-99 150,000 90,000 60,000
1995C Certificate ofIndebtedness 4.65-4.85% 06-01-95 02-01-00 515.000 90.000 425.000
Total Certificates of
Indebtedness 665,000 180,000 485,000
Assessments on City Property 6.25-10.70% N/A 2001 338,174 193,123 145,051
Compensated Absences Payable N/A N/A N/A 156.468 0 156 468
TOTAL $ 37.614.642 $ 6.138.123 $ 31.476.519
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General Obligation Special Tax Certificates
Year Ending Obligation Revenue Assessment Increment of
December 31 BomlL- Bonds Bonds Bonds Indebtedness Total
1998 $ 305,500 $ 166,600 $ 3,906,663 $ 789,920 $ 149,790 $ 5,318,473
1999 290,063 170,025 3,665,948 797,165 192,687 5,115,888
2000 274,250 173,165 3,446,393 817,880 179,244 4,890,932
2001 258,125 181,005 2,997,563 826,495 0 4,263,188
2002 0 183,310 2,590,719 838,457 0 3,612,486
Thereafter _---12 3.222.245 5 265 348 9 075 433 0 17,563 026
$ .L12-7.938 $ 4.096.350 $ 21.872.634 $ 13.145.350 $ 521.721 $ 40.763.993
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including interest payments of$ 9,588,993 are:
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CITY OF ANDOVER
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
5, Refunding Bonds
On June 11, 1997, the City issued $ 630,000 General Obligation Refunding Bonds with
an average interest rate of 5.30% to advance refund $ 1,015,000 of outstanding 1986C
General Obligation Refunding Bonds with an average interest rate of7.29%. The net
proceeds of$ 635,198 plus an additional $ 394,950 of City funds were used to call and
retire all outstanding 1986C Bonds on August 1,1997 and to pay bond issuance expenses.
This current refunding will result in a total reduction in debt service payments of
$ 149,937 over the next five years and provides for an economic gain of$ 60,765,
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 ofthe 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, 1997, the following revenue bonds were outstanding:
Date of Original Outstanding
Proiect Issue Issue Retired December 31. 1997
Downtown Center 07-15-97 $ 5,645,000 $ 100,000 $ 5,545,000
Downtown Center 07-15-97 1.250.000 0 1.250.000
Total $ 6.895.000 $ 100.000 $ 6.795.000
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NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
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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,
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Contributed capital in the enterprise funds represents fixed assets which were
purchased by other funds and transferred to the enterprise funds. Change in
contributed capital for the year ended December 31, 1997 is as follows:
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Water Sewer
Fund Fund Total
Contributed Capital -
January 1, 1997 $ 9,321,636 $ 11,174,527 $ 20,496,163
Add: 1997 ContIibutions 0 0 0
Less: Depreciation on
Contributed Assets (197.235) (277.945) (475.180)
Contributed Capital -
December 31, 1997 $ 9.124.401 $ 10.896.582 $ 20.020.983
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NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fund Equity (Continued)
3, Fund Balance
Fund balances are classified as follows to reflect limitations and restrictions of the
respective funds.
Special Debt Capital Expendable
General Revenue Service Projects Trust Total
Reserved for:
Inventory $ 36,557 $ o $ o $ 0 $ 0 $ 36,557
Prepaid Items 4,381 0 0 0 0 4,381
Debt Service 0 0 6.080.923 0 ----1! 6 080,923
Total Reserved
Fund Balance 40,938 0 6,080,923 0 0 6,121,861
Unreserved:
Designated for Working
Capital 855,453 0 0 0 0 855,453
Designated for Future
Expenditures 163,234 0 0 0 0 163,234
Designated for Projects 0 0 0 7,990,875 0 7,990,875
Designated for Equipment 0 285,131 0 549,336 0 834,467
Designated for Administration 0 0 0 0 33 294 33.294
Total Unreserved -
Designated Fund
Balance 1,018,687 285,131 0 8,540,211 33,294 9,877,323
Undesignated 787.122 162.132 (176 057) (1.222.774) ----1! (449 .577)
Total Fund
Balance $ 1.846747 $ 447 263 $ 5.904 866 $ 7.317.437 $ 33.294 $ 15 549 607
4, Retained Eamings
Retained earnings balances are unreserved at December 31, 1997.
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CITY OF ANDOVER
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NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 4 - SEGMENT INFORMATION
The City maintains Water and Sewer Enterprise Funds. Segment information for the year ended
December 31, 1997 is as follows:
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Water Sewer Totals
Operating Revenues $ 701,871 $ 864,066 $ 1,565,937
Operating Expenses 716,204 995,914 1,712,118
Depreciation Expense 302,447 300,822 603,269
Operating Income (Loss) (14,333) (131,848) (146,181)
Operating Transfers Out (131,000) (10,000) (141,000)
Net Loss (82,274) (117,234) (199,508)
Contributed Capital 0 0 0
Net Working Capital 1,169,981 866,494 2,036,475
Fixed Asset Purchases 80,145 21,383 101,528
Total Assets 10,406,621 11,834,339 22,240,960
Total Equity 10,371,400 11,812,852 22,184,252
NOTE 5 - TAX INCREMENT DISTRICTS
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The City of Andover is the administering authority for the following tax increment finance
districts:
1. Narne of District: Andover Redevelopment District 1-1
Type of District: Redevelopment
Authorizing Law: Minnesota Statutes Section 472
Established: 1986
Duration ofDistri.ct: Through 2012
Original Net Tax Capacity
Current Net Tax Capacity
Captured Net Tax Capacity-
Retained by City
$ 28,525
282.354
$ 253.829
2. Name of District: Andover Redevelopment District 1-2
Type of District: Redevelopment
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
$ 61,018
626.030
$ 565.Q12
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CITY OF ANDOVER
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
(Continued)
NOTE 5 - TAX INCREMENT DISTRICTS (Continued)
Total District 1 Bonds Issued
$ 9,515,000
(685.000)
$ 8.830.000
Amounts Redeemed
Bonds Outstanding at December 31, 1997
NOTE 6 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; and natural disasters. The City participates in the League of
Minnesota Cities Insurance Trust (LMC Trust), a public entity risk pool for its general property
and casualty, workers' compensation, and other miscellaneous insurance coverages, The LMC
Trust operates as a common risk management and insurance program for approximately 780
cities, The City pays an annual premium to the LMC Trust for insurance coverage. The LMC
Trust agreement provides that the Trust will be self-sustaining through member premiums and
will reinsure through commercial companies for claims in excess of certain limits, The major
reinsurance points are generally $ 200,000 per occurrence for property loss or damage and
$ 450,000 per occurrence for workers' compensation.
The City also carries commercial insurance for certain other risks of loss, including employee
health insurance, Settled claims resulting from these 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 12-31-97 Commitment Financing
Commercial Boulevard $ 250,801 $ 243,930 $ 6,871 None
Shadowbrook 1,487,376 1,439,482 47,894 None
Public Works Expansion 315,061 202,611 112,450 None
Cherrywood Estates 237,693 223,455 14,238 None
Woodland Estates 1,291,059 1,167,379 123,680 None
Shadowbrook 2nd Addition 651,896 630,923 20,973 None
Crowne Point East 2nd Addition 364,042 336,325 27,717 None
Chesterton Commons 747,306 685,665 61,641 $ 700,000
Prairie Road NW/Bunker Lake
Blvd. NW 244,361 201,680 42,681 None
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CITY OF ANDOVER
NOTES TO THE FINANCIAL STATEMENTS
December 31,1997
(Continued)
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NOTE 7 - COMMITME1'ITS (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. Thl~ City expects such amounts, if any, to be immaterial.
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COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS
CITY OF ANDOVER, MINNESOTA
THE GENERAL FUND
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The General Fund is established to account for the revenues and expenditures necessary to carry
out basic governmental activities ofthe 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.
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I CITY OF ANDOVER, MINNESOTA
COMPARATIVE BALANCE SHEET - GENERAL FUND
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I December 31
1997 1996
ASSETS
Cash and Investments $ 1,738,145 $ 1,322,913
I Taxes Receivable -
Delinquent 42,303 38,995
Special Assessments Receivable -
I Deferred 48 48
Delinquent 259 353
Accounts Receivable 35,107 50,274
I Interest Fteceivable 37,408 24,634
Due From Other Governmental Units 195,508 86,748
Inventory 36,557 37,728
I Prepaid Items 4,381 34,097
TOTAL ASSETS $ 2,089,716 $ 1,595,790
I LIABILITIES AND FUND BALANCE
I Liabilities:
Accounts Payable $ 113,336 $ 145,992
Accrued Items 54,958 54,749
I Contracts Payable 0 75,060
Due to Other Governmental Units 32,065 961
Deferred Revenue 42,610 39,396
Total Liabilities 242,969 316,158
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Fund Balance:
Reserved for -
I Inventory 36,557 37,728
Prepaid Items 4,381 34,097
Unreserved -
I Designated for Working Capital 855,453 855,453
Designated for Future Expenditures 163,234 32,000
Undesignated 787,122 320,354
I Total Fund Balance 1,846,747 1,279,632
TOTAL LIABILITIES AND FUND BALANCE $ 2,089,716 $ 1,595,790
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND C
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND C
Year Ended December 31,1997
1997 1996 C
Over
(Under)
Budget Actual Budget Actual C
REVENUES:
General Property Taxes $ 2,412,301 $ 2,383,965 $ (28,336) $ 2,180,470
Licenses and Permits 371,255 456,413 85,158 390,327 C
Intergovernmental 979,890 988,814 8,924 857,689
Charges for Services 478,650 578,221 99,571 447,199
Fines 39,100 48,800 9,700 57,125
Miscellaneous 210,803 258,087 47,284 169,049 C
Total Revenues 4,491,999 4,714,300 222,301 4,101,859
EXPENDITURES: C
Current -
General Government 1,385,591 1,252,047 (133,544) 1,068,585
Public Safety 1,477,603 1,409,087 (68,516) 1,320,680 C
Public Works 1,103,133 1,044,183 (58,950) 947,472
Sanitation 147,054 95,632 (51,422) 60,517
Parks and Recreation 410,335 383,059 (27,276) 455,517 C
Recycling 59,744 62,281 2,537 55,170
Miscellaneous 239,639 212,503 (27,136) 154;085
Total Expenditures 4,823,099 4,458,792 (364,307) 4,062,026
EXCESS OF REVENUES OVER (tJNDER) C
EXPENDITURES (331,100) 255,508 586,608 39,833
OTHER FINANCING SOURCES (USES): C
Operating Transfers In 337,100 317,200 (19,900) 71,000
Operating Transfers Out (6,000) (6,000) 0 (8,000) C
Proceeds from Sale of Property 0 407 407 11,552
Total Other Financing Sourees (Uses) 331,100 311 ,607 (19,493) 74,552
EXCESS OF REVENUES AND OTHER [j
FINANCING SOURCES OVER
EXPENDITURES AND OTHER USES $ 0 567,1l5 $ 567.115 114,385
FUND BALANCE - January I 1,279,632 1,696,900 C
RESIDUAL EQUITY TRANSFER 0 (531,653) C
FUND BALANCE - December 31 $ 1.846.747 $ 1.279,632
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 3 I, 1997
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
General Property Taxes $ 2,412,301 $ 2,383,965 $ (28,336) $ 2,180,470
Licenses and Permits 371,255 456,413 85,158 390,327
Intergovernmental Revenue -
CDBG Grants 35,000 68,667 33,667 84,283
Local Government Aid 120,769 120,769 0 106,935
HACA and Local Performance Aid 355,036 355,088 52 343,343
COPS Grant 25,000 25,000 0 30,000
Street Maintenance 140,000 140,000 0 140,000
Fire Department Aid 53,000 54,275 1,275 54,542
Disaster Relief Aid 129,085 98,497 (30,588) 0
Other Grants 122,000 126,518 4,518 98,586
Total Intergovernmental Revenue 979,890 988,814 8,924 857,689
Charges for Services -
General Government 475,150 574,546 99,396 443,504
Utility Funds 3,500 3,675 175 3,695
Total Charges for Services 478,650 578,221 99,571 447,199
Fines 39,100 48,800 9,700 57,125
Miscellaneous -
Assessments 0 2,691 2,691 361
Interest 24,000 71,224 47,224 52,653
Rent 12,000 19,832 7,832 1,001
Donations 0 200 200 1,000
Refunds and Reimbursements 43,903 39,912 (3,991) 7,165
Street Light Fees 112,000 106,704 (5,296) 106,230
Computer Services 17,000 17,001 1 0
Other 1,900 523 (1,377) 639
Total Miscellaneous 210,803 258,087 47,284 169,049
Total Revenues 4,491,999 4,714,300 222,301 4,101,859
40
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND O
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 31, 1997
(Continued)
1997 1996 a
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES:
General Government -
Mayor and City Council -
Personal Services $ 20,080 $ 20,024 $ (56) $ 20,024
Materials and Supplies 250 776 526 201
Purchased Services 15,900 15,450 (450) 15,348
Other Services and Charges 18,970 19,815 845 17,461
Total Mayor and City Council 55,200 56,065 865 53,034
Newsletter -
Purchased Services 5,280 6,287 1,007 5,247
City Clerk -
Personal Services 73,918 70,959 (2,959) 71,424
Materials and Supplies 400 1,483 1,083 464
Purchased Services 15,000 15,039 39 15,030
Other Services and Charges 1,200 668 (532) 1,121
Total City Clerk 90,518 88,149 (2,369) 88,039
Administration -
Personal Services 72,671 68,071 (4,600) 57,467
Materials and Supplies 3,000 3,229 229 2,598
Purchased Services 12,500 12,193 (307) 10,857
Other Services and Charges 5,334 3,319 (2,015) 4
Total Administration 93,505 86,812 (6,693) 74,945
Financial Administration -
Personal Services 166,511 161,284 (5,227) 141,051
Materials and Supplies 3,300 3,465 165 2,097 a
Purchased Services 3,850 3,572 (278) 4,501
Other Services and Charges 7,840 7,002 (838) 4,098
Capital Outlay 1,000 853 (147) 0
Total Financial Administration 182,501 176,176 (6,325) 151,747
Elections -
Personal Services 1,354 1,323 (31) 13,850
Materials and Supplies 0 0 0 203
Purchased Services 2,010 1,151 (859) _ 1,583
Total Elections 3,364 2,474 (890) 15,636
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
' GENERALFUND
Year Ended December 31, 1997
(Continued)
1997 1996
Over
' (Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
General Government - (Continued)
Assessing -
Purchased Services $ 70,000 $ 68,914 $ (1,086) $ 69,799
Legal and Accounting -
Purchased Services 99,868 105,394 5,526 108,833
Planning and Zoning -
Personal Services 140,087 134,311 (5,776) 104,242
Materials and Supplies 4,211 5,748 1,537 2,452
Purchased Services 10,380 11,149 769 7,157
Other Services and Charges 7,478 6,136 (1,342) 2,952
Capital Outlay 7,500 7,520 20 0
Total Planning and Zoning 169,656 164,864 (4,792) 116,803
Data Processing -
Materials and Supplies 45,975 38,894 (7,081) 27,437
Capital Outlay 5,000 4,904 (96) 0
Total Data Processing 50,975 43,798 (7,177) 27,437
City Hall Building -
Materials and Supplies 4,500 4,878 378 3,911
Purchased Services 24,950 30,661 5,711 25,546
Other Services and Charges 11,050 7,815 (3,235) 8,685
Capital Outlay 0 4,750 4,750 10,129
Total City Hall Building 40,500 48,104 7,604 48,271
Fire Department Building -
Materials and Supplies 9,750 1,413 (8,337) 1,598
Purchased Services 34,070 33,951 (119) 34,106
Other Services and Charges 7,750 8,258 508 4,917
Total Fire Department Building 51,570 43,622 (7,948) 40,621
Public Works Building -
Materials and Supplies 11,000 7,900 (3,100) 4,470
Purchased Services 19,075 19,526 451 19,905
' Other Services and Charges 8,650 8,983 333 4,472
Capital Outlay 55,000 9,094 (45,906) 16,535
Total Public Works Building 93,725 45,503 (48,222) 45,382
42
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 31, 1997
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES; (Continued)
General Government - (Continued)
Senior Citizen Center -
Materials and Supplies $ 800 $ 432 $ (368) $ 0
Purchased Services 6,700 6,178 (522) 6,685
Other Services and Charges 4,000 2,854 (1,146) 1,898
Total Senior Citize:n Center 11,500 9,464 (2,036) 8,583
Equipment Building -
Materials and Supplies 900 732 (168) 219
Purchased Services 3,140 1,988 (1,152) 2,492
Other Services and Charges 610 0 (610) 296
Total Equipment Building 4,650 2,720 (1,930) 3,007
City Hall Garage -
Materials and Supplies 100 10 (90) 0
Purchased Services 950 814 (136) 430
Total City Hall Garage 1,050 824 (226) 430
Field of Dreams Building-
Materials and Supplies 3,020 955 (2,065) 0
Purchased Services 23,041 28,618 5,577 0
Other Services and Charges 4,450 3,919 (531) 0
Total Field of Dreams Building 30,511 33,492 2,981 0
Engineering -
Personal Services 289,424 232,174 (57,250) 192,060
Materials and Supplies 10,000 9,286 (714) 4,800
Purchased Services 6,430 8,239 1,809 4,859
Other Services and Charges 14,364 11,138 (3,226) 4,517
Capital Outlay 11,000 8,548 (2,452) 4,535
Total Engineering 331,218 269,385 (61,833) 210,771
Total General Government 1,385,591 1,252,047 (133,544) 1,068,585
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 31, 1997
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Public Safety -
Police -
Materials and Supplies $ 0 $ 170 $ 170 $ 21
Purchased Services 645,871 645,871 0 598,922
Other Services and Charges 50,052 0 (50,052) 0
Total Police 695,923 646,041 (49,882) 598,943
Fire Protection -
Personal Services 303,140 281,308 (21,832) 312,944
Materials and Supplies 30,435 27,704 (2,731) 19,596
Purchased Services 17,100 16,180 (920) 14,051
Other Services and Charges 122,900 125,303 2,403 83,350
Capital Outlay 35,000 40,839 5,839 31 ,573
Total Fire Protection 508,575 491,334 (17,241) 461,514
Protective Inspection -
Personal Services 217,319 220,607 3,288 217,392
Materials and Supplies 8,600 8,996 396 5,771
Purchased Services 3,475 4,458 983 2,684
Other Services and Charges 15,229 14,933 (296) 8,730
Capital Outlay 5,350 5,161 (189) 1,143
Total Protective Inspection 249,973 254,155 4,182 235,720
Civil Defense -
Personal Services 2,887 2,837 (50) 2,818
Materials and Supplies 3,650 0 (3,650) 5,142
Purchased Services 1,470 1,253 (217) 1,163
Other Services and Charges 3,000 2,156 (844) 3,817
Total Civil Defense 11,007 6,246 (4,761) 12,940
Animal Control -
Materials and Supplies 350 186 (164) 75
Purchased Services II, 77 5 11,125 (650) 11,488
Total Animal Control 12,125 11,311 (814) 11,563
Total Public Safety 1,477,603 1,409,087 (68,516) 1,320,680
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 3 I, 1997
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Public Works -
Streets and Highways -
Personal Services $ 115,107 $ 118,552 $ 3,445 $ 139,552
Materials and Supplies 35,300 24,318 (10,982) 33,087
Purchased Services 12,725 13,536 811 12,384
Other Services and Charges 345,485 302,077 (43,408) 52,257
Capital Outlay 0 0 0 302,756
Total Streets and Highways 508,617 458,483 (50,134) 540,036
Snow and Ice Removal - 0
Personal Services 167,848 158,705 (9,143) 100,448
Materials and Supplies 105,400 144,620 39,220 65,811
Purchased Services 2,750 2,300 (450) 2,146
Other Services and Charges 72,952 70,204 (2,748) 46,825
Total Snow and lee Removal 348,950 375,829 26,879 215,230
Street Lighting -
Purchased Services 24,000 19,437 (4,563) 17,531
Other Services and Charges 16,150 50 (16,100) 100
Capital Outlay 2,000 2,241 241 610
Billed Services 89,550 90,036 486 89,534
Total Street Lighting 131,700 111,764 (19,936) 107,775
Street Signs -
Personal Services 42,072 42,488 416 27,256
Materials and Supplies 27,130 30,752 3,622 18,823
Purchased Services 100 301 201 90
Other Services and Charges 19,564 7,263 (12,301) 16,257
Capital Outlay 0 0 0 5,395
Total Street Signs 88,866 80,804 (8,062) 67,821
Traffic Signals -
Purchased Services 25,000 17 ,303 (7,697) 16,610
Total Public Works 1,103,133 1,044,183 (58,950) 947,472
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 31, 1997
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Sanitation -
Storm Sewers -
Personal Services $ 39,296 $ 34,867 $ (4,429) $ 9,695
Materials and Supplies 3,800 3,315 (485) 4,517
Purchased Services 714 307 (407) 291
Other Services and Charges 14,095 3,523 (10,572) 4,161
Capital Outlay 35,000 27,049 (7,951) 10,546
Total Storm Sewers 92,905 69,061 (23,844) 29,210
Tree Preservation and Weed Control-
Personal Services 26,398 14,892 (11,506) 17,075
Materials and Supplies 3,450 1,446 (2,004) 3,854
Purchased Services 9,245 4,877 (4,368) 6,474
Other Services and Charges 15,056 4,274 (10,782) 3,101
Capital Outlay 0 1,082 1,082 803
Total Tree Preservation and
Weed Control 54,149 26,571 (27,578) 31,307
Total Sanitation 147,054 95,632 (51,422) 60,517
Parks and Recreation -
Personal Services 140,138 124,695 (15,443) 169,604
Materials and Supplies 40,200 41,080 880 33,4 I 6
Purchased Services 20,488 20,632 144 20,435
Other Services and Charges 79,773 78,470 (1,303) 55,578
Capital Outlay 60,000 35,582 (24,418) 74,397
Miscellaneous 69,736 82,600 12,864 102,087
Total Parks and Recreation 410,335 383,059 (27,276) 455,517
Recycling -
Personal Services 24,507 24,543 36 22,054
Materials and Supplies 4,450 1,139 (3,3 11) 2,484
Purchased Services 9,700 10,077 377 6,235
Other Services and Charges 17,587 23,005 5,418 22,821
Capital Outlay 3.500 3,517 17 1,576
Total Recycling 59,744 62,281 2,537 55,170
46
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year Ended December 31, 1997
(Continued)
1997 1996
Over
(Under)
Budget Actual Budget Actual
EXPENDITURES: (Continued)
Unallocated -
CDBG $ 35,000 $ 69,264 $ 34,264 $ 84,283
Insurance 21,005 21,777 772 29,501
Miscellaneous 183,634 121,462 (62,172) 40,301
Total Unallocated 239,639 212,503 (27,136) 154,085
Total Expenditures 4,823,099 4,458,792 (364,307) 4,062,026
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (331,100) 255,508 586,608 39,833
OTHER FINANCING SOURCES (USES):
Operating Transfers In 337,100 317,200 (19,900) 71,000
Operating Transfers Out (6,000) (6,000) 0 (8,000)
Proceeds from Sale of Property 0 407 407 11,552
Total Other Financing Sources (Uses) 331,100 311 ,607 (19,493) 74,552
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER
EXPENDITURES AND OTHER USES $ 0 567,115 $ 567,115 114,385
FUND BALANCE - January 1 1,279,632 1,696,900
RESIDUAL EQUITY TRANSFER 0 (531,653)
FUND BALANCE - December 31 $ 1 846,747 $ 1,279.632
-;-~---------=-=::;;;;I
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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.
C
CITY OF ANDOVER, MINNESOTA 0
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET C
December 31, 1997
With Comparative Totals for December 31, 1996
C
Drainage
and EDA C
Forestry LRRWMO Mapping General
ASSETS
Cash and Investments $ 20,021 $ 7,452 $ 51,539 $ 53,097 C
Taxes Receivable -
Delinquent 0 375 0 0
Accounts Receivable 0 0 0 0 C
Interest Receivable 1,227 III 1,833 0
Due from Other Governmental Units 0 ' 189 0 0
TOTAL ASSETS $ 21.248 $ 8,127 $ 53,372 $ 53,097 C
LIABILITIES AND FUND BALANCE C
Liabilities:
Accounts Payable $ 0 $ 0 $ 106 $ 0 C
Accrued Items 5 80 0 624
Deferred Revenue 0 375 0 0
Total Liabilities 5 455 106 624 C
Fund Balance :
Unreserved -
Designated for Equipment 0 0 0 0 C
Undesignated 21,243 7,672 53,266 52,473
Total Fund Balance 21,243 7,672 53,266 52,473
TOTAL LIABILITIES C
AND FUND
BALANCE $ 21 ,248 $ 8,127 $ 53,372 $ 53,097 C
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Capital
I Trail and Septic Equipment Developer Totals
Transportation Disposal Reserve Sealcoating 1997 1996
I $ 138,108 $ 7,138 $ 278,322 $ 140,961 $ 696,638 $ 760,785
0 0 0 0 375 328
I 0 0 0 0 0 1,615
4,617 259 6,877 4,638 19,562 22,328
0 0 0 0 189 140
I $ 142,725 $ 7,397 $ 285,199 $ 145,599 $ 716,764 $ 785,196
I
$ 0 $ 0 $ 68 $ 0 $ 174 $ 945
I 0 0 0 0 709 1,062
132,000 0 0 136,243 268,618 182,499
132,000 0 68 136,243 269,501 184,506
I
I 0 0 285,131 0 285,131 498,746
10,725 7,397 0 9,356 162,132 101,944
10,725 7,397 285,131 9,356 447,263 600,690
I
I $ 142,725 $ 7,397 $ 285,199 $ 145,599 $ 716,764 $ 785,196
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CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUNDS C
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE C
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Drainage C
and EDA Trail and
Forestry LRRWMO Mapping General Transportation C
REVENUES:
General Property Taxes $ 0 $ 14,119 $ 0 $ 0 $ 0
Intergovernmental -
State 0 2,546 0 0 0 C
Other Grants 40,260 0 0 0 0
Charges for Services 21,045 0 5,328 1,200 0
Miscellaneous -
Interest 1,312 227 2,684 314 7,715 C
Refunds and Reimbursements 35 0 0 0 0
Other 0 0 396 78,200 0
Total Revenues 62,652 16,892 8,408 79,714 7,715
EXPENDITURES: C
Current -
Public Works 11,343 14,231 18,160 0 0 C
Parks and Recreation 0 0 0 0 0
Economic Development 0 0 0 73,993 0
Capital Outlay 0 0 3,481 0 0
Total Expenditures 11,343 14,231 21,641 73,993 0 C
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 51,309 2,661 (13,233) 5,721 7,715
OTHER FINANCING SOURCES (USES): ~
Operating Transfers In 1,501 0 0 0 0 .-
Operating Transfers Out 0 0 0 (22,230) 0
Proceeds From Sale of Property 0 0 0 43,835 0 C
Total Other Financing Sources (Uses) 1,501 0 0 21,605 0
EXCESS OF REVENUES AND C
OTHER SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES 52,810 2,661 (13,233) 27,326 7,715
FUND BALANCE (DEFICIT) - January I (1,362) 5,011 66,499 . 25,147 3,010 C
RESIDUAL EQUITY TRANSFER (30,205) 0 0 0 0
FUND BALANCE - December 31 $ 21243 $ 7672 $ 53,266 $ 52473 $ 10725 C
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I Capital Totals
Septic Equipment Developer Oak Wilt December 3 1
Disposal Reserve Sealcoating Suppression 1997 1996
I
$ 0 $ 0 $ 0 $ 0 $ 14,119 $ 13,492
I 0 0 0 0 2,546 3,487
0 0 0 0 40,260 0
3,300 0 0 0 30,873 21,716
I 458 7,071 9,356 493 29,630 42,223
0 0 0 5,109 5,144 5,224
0 0 0 0 78.596 91.332
3,758 7,071 9,356 5,602 201,168 177,474
I
0 0 0 34,306 78,040 50,395
I 0 0 0 0 0 8,096
0 0 0 0 73,993 83,108
0 80,486 0 0 83,967 194,556
I 0 80,486 0 34,306 236,000 336,155
3,758 (73,415) 9,356 (28,704) (34,832) (158,681)
I 0 106,000 0 0 107,501 115,000
0 (246,200) 0 (1,501) (269,931) (53,730)
I 0 0 0 0 43,835 22,230
0 (140,200) 0 (1.501) (118.595) 83.500
I 3,758 (213,615) 9,356 (30,205) (153,427) (75,181)
I 3,639 498,746 0 0 600,690 109,144
0 0 0 30,205 0 566,727
I $ 7397 $ 285 13 1 $ 9356 $ 0 $ 447 263 S 600 690
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49
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FORESTRY FUND
Year Ended December 31, 1997
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
Intergovernmental -
Other Grants $ 0 $ 40,260 $ 40,260 $ 0
Charges for Services 7,000 21,045 14,045 7,597
Miscellaneous -
Interest 1,200 1,312 112 3,220
Refunds and Reimbursements 0 35 35 5,224
Total Revenues 8,200 62,652 54,452 16,041
EXPENDITURES:
Public Works-
Personal Services 8,612 11,205 2,593 9,766
Materials and Supplies 1,000 119 (881) 247
Purchased Services 500 19 (481) 93
Other Services and Charges 10,700 0 00,700) 20,105
Total Expenditures 20,812 11,343 (9,469) 30,211
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (12,612) 51,309 63,921 (14,170)
OTHER FINANCING SOURCES:
Operating Transfers In 0 1,501 1,501 0
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES $ (12,612) 52,810 $ 65.422 (14,170)
FUND BALANCE (DEFICIT) - January 1 (1,362) 12,808
RESIDUAL EQUITY TRANSFER (30,205) 0
FUND BALANCE (DEFICIT) - December 31 $ 21.243 $ (1.362)
-~--
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
LRRWMO FUND
Year Ended December 31, 1997
REVENUES:
General Property Taxes
Intergovernmental -
State Aids
Miscellaneous -
Interest
Total Revenues
1997 1996
Over
(Under)
Budget Actual Budget Actual
$ 14,090 $ 14,119 $ 29 $ 13,492
2,539 2,546 7 3,487
105 227 122 70
16,734 16,892 158 17,049
EXPENDITURES:
Public Works-
Personal Services
Materials and Supplies
Purchased Services
Other Services and Charges
Total Expenditures
11,514 11,284 (230) 11 ,223
555 0 (555) 0
460 0 (460) 532
4,205 2,947 (I,258) 4.358
16,734 14,231 (2,503) 16,113
$ 0 2,661 $ 2,661 936
5.011 4,075
$ 7672 $ 5011
EXCESS OF REVENUES
OVER EXPENDITURES
FUND BALANCE - January 1
FUND BALANCE - December 31
51
REVENUES:
Charges for Services -
Drainage and Mapping
Miscellaneous -
Interest
Other
Total Revenues
1997 1996
Over
(Under)
Budget Actual Budget Actual
$ 47,725 $ 5,328 $ (42,397) $ 0
700 2,684 1,984 4,738
0 396 396 5,098
48,425 8,408 (40,017) 9,836
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
DRAINAGE AND MAPPING FUND
Year Ended December 31, 1997
EXPENDITURES:
Public Works-
Materials and Supplies
Purchased Services
Other Services and Charges
Capital Outlay
Total Expenditures
c
EXCESS OF REVENUES
(UNDER) EXPENDITURES
6,500 963 (5,537) 557
38,300 14,965 (23,335) 1,685
2,125 2,232 107 1,829
1,500 3,481 1,981 12,512
48,425 21,641 (26,784) 16,583
$ 0 (13,233) $ (13,233) (6,747)
66,499 73,246
$ 53,266 $ 66,499
52
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FUND BALANCE - January 1
FUND BALANCE - December 31
----~-------r---
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.CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
EDA GENERAL FUND
Year Ended December 31, 1997
REVENUES:
Charges for Services
Miscellaneous -
Interest
Other
Total Revenues
1997 1996
Over
(Under)
Budget Actual Budget Actual
$ 0 $ 1,200 $ 1,200 $ 10,569
1,500 314 (1,186) 471
78,200 78,200 0 78,200
79,700 79,714 14 89,240
EXPENDITURES:
Economic Development -
Personal Services
Materials and Supplies
Purchased Services
Other Services and Charges
Total Expenditures
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers Out
Proceeds From Sale of Property
Total Other Financing Sources (Uses)
70,014 69,523 (491) 72,629
2,000 82 (1,918) 0
9,390 2,733 (6,657) 9,892
1,270 1,655 385 587
82,674 73,993 (8,681) 83,108
(2,974) 5,721 8,695 6,132
0 (22,230) (22,230) (22,230)
2,974 43,835 40,861 22,230
2,974 21,605 18,631 0
$ 0 27,326 $ 27,326 6,132
25,147 19,015
$ 52.473 $ 25 147
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE - January 1
FUND BALANCE - December 31
53
y-
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
TRAIL AND TRANSPORTATION
Year Ended December 31, 1997
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
Miscellaneous -
Interest $ 0 $ 7,715 $ 7,715 $ 3,010
Total Revenues 0 7,715 7,715 3,010
EXPENDITURES 0 0 0 0
EXCESS OF REVENUES OVER
EXPENDITURES $ 0 7,715 $ 7,715 3,010
FUND BALANCE - January 1 3,010 0
FUND BALANCE - December 31 $ 10725 $ 3,010
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
SEPTIC DISPOSAL FUND
Year Ended December 31, 1997
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
Charges for Services $ 0 $ 3,300 $ 3,300 $ 3,550
Miscellaneous -
Interest 0 458 458 89
Total Revenues 0 3,758 3,758 3,639
EXPENDITURES 0 0 0 0
EXCESS OF REVENUES OVER
EXPENDITURES $ 0 3,758 $ 3.758 3,639
FUND BALANCE - January 1 3.639 0
FUND BALANCE - December 31 $ 7.397 $ 3.639
55
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL EQUIPMENT RESERVE FUND
Year Ended December 31, 1997
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
Miscellaneous -
Interest $ 0 $ 7,071 $ 7,071 $ 30,563
EXPENDITURES:
Capital Outlay 109,000 80,486 (28,514) 182,044
EXCESSOFREVENUES0UNDER)
EXPENDITURES (109,000) (73,415) 35,585 (151,481)
OTHER FINANCING SOURCES (USES):
Operating Transfers In 364,800 106,000 (258,800) 115,000
Operating Transfers Out (246,200) (246,200) 0 (31,500)
Total Other Financing Sources (Uses) 118,600 (140,200) (258,800) 83,500
EXCESS OF REVENUES AND OTHER
SOURCES (UNDER) EXPENDITURES $ 9600 (213,615) $ (223 215) (67,981)
FUND BALANCE - January 1 498,746 0
RESIDUAL EQUITY TRANSFER 0 566,727
FUND BALANCE - December 31 $ 285 131 $ 498.746
-- -- - -
,
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
DEVELOPERSEALCOATINGFUND
Year Ended December31, 1997
1997 1996
Over
(Under)
Budget Actual Budget Actual
REVENUES:
Miscellaneous -
Interest $ 0 $ 9,356 $ 9,356 $ 0
EXPENDITURES 0 0 0 0
EXCESS OF REVENUES OVER
EXPENDITURES $ 0 9,356 $ 9.356 0
FUND BALANCE - January I 0 0
FUND BALANCE - December 31 $ 9.356 $ 0
57
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
OAK WILT SUPPRESSION FUND
Year Ended December 31, 1997
REVENUES:
Miscellaneous -
Interest
Refunds and Reimbursements
Total Revenues
1997 1996
Over
(Under)
Budget Actual Budget Actual
$ 0 $ 493 $ 493 $ 0
0 5,109 5,109 0
0 5,602 5,602 0
EXPENDITURES:
Public Works -
Materials and Supplies
Purchased Services
Other Services and Charges
Total Expenditures
0 395 395 0
0 290 290 0
0 33,621 33,621 0
0 34,306 34,306 0
0 (28,704) (28,704) 0
0 (1,501) (1,501) 0
$ 0 (30,205) $ <30.205) 0
0 0
30,205 0
$ 0 $ 0
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING USES:
Operating Transfers Out
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES
FUND BALANCE - January 1
RESIDUAL EQUITY TRANSFER
FUND BALANCE - December 31
-:--=-------~_._~-- -------:-::1
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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,
-r---
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CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December31,1997
With Comparative Totals for December 31, 1996
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G.O,
0.0, Improvement G.O. G,O. G.O. G,O. G.O. BOA Public G.O. G.O.
Improvement Refunding Improvement Improvement Improvement Improvement Il1)provement Project Improvement Improvement
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Revenue Bonds Bonds Bonds
of 1986A of 198601997C of 1989 ofl993A of 1994C of 1995A of I996C of 1997 ofl997A of 19978
Totals
1997 1996
5,730,246 $ 9,219.376
7,560 9,872
3,498,902 4,200,084
11,154 16,990
165,427 243,051
19,922 15.189
(118.292) $ 983,953 $ (37.519) 161,658 $ 246,632 1,039,115 705,237
0 0 0 0 0
3,867 284.658 16,498 328.496 311.176 224,965 418.457
0 6,692 0 0 3,562 0 746
33,349 0 5,284 7,397 36,545 26,697
2,482 120 838 4,277 380
$ (J1442S) $ 1.311.134 $ (20.901) $ 496 276 S 573 044 $ 1.300.625 1.151.517
26,201
o
854,542 73,128
0 0
1,394,039 350,970
0 0
15,162 1,136
0 0
o
o
26201 S 2.263.743 S
425.234 $ 9 433 ~lL $ 13704 562
0 0 S 225 553 111 7,771 575 0 $ 10,729 1,054
3,867 291,350 16,498 328,496 314,738 224,965 419,203 0 1,394,039 350,970 3,517,616 4,226,946
3,867 291,350 16,723 329,049 314,738 224,965 419,314 7,771 1,394,614 350,970 3,528,345 4,228,000
1,019,784 0 167,227 258,306 1,075,660 732.203 18,430 869,129 74,264 6,080,923 9,584.862
018,292) (37,624) 0 0 0 0 0 0 0 (176,057) (108,300)
018,292) 1,019,784 (37,624) 167,227 258,306 1,075,660 732,203 18,430 869,129 74,264 5,904,866 9,476,562
(J14425l
1311134 $
(20901) S
496 276 S
573044 $ 1300 625 S 1,151517
26201 $ 2263743 S
425234 $ 9,43321 t $ 13704562
59
CITY OF ANDOVER, MINNESOTA C
DEBT SERVICE FUNDS C
COMBINING STATEMENT OF REVENUES, EXPENDlTIJRES
AND CHANGES IN FUND BALANCE
Year Ended December 31. 1997
With Comparative Totals for the Year Ended December 31, 1996 C
Stale TIF TIF GO. G.O, G.O. G.O, C
Certificates (J.O. Aid TIF Bon'" Bon'" Improvement Improvement Improvement Improvement
of Bonds Bon'" Commercial of 19938 of 1994B Bonds Bonds Bonds Bon'"
Indebtedness ---..2f.1991A of 1988B Revitalization Proiect 1-1 Proiect 1-2 of 1977A of 1978 of 19858 of 1986A
REVENUES: C
Tax.. 146.681 239,950 0 $ 0 0 $ 0 $ 0 0
Tax Increments 0 0 0 637.157 71,230 160.270 0 0 0 0
Special Assessments 0 5,472 0 28,927 8.308 0 634
Intergovernmental - C
State Aids 43,477 85.009 55.087 0 0 0 0 0 0
Miscellaneous -
Interest 0 0 266 0 15,898 0 34.884 4,919 0
Other 0 0 0 0 0 0 0 0 0 C
--
Total Revenues 190.158 324,959 55.353 642.629 87,128 160.270 63.811 13,227 0 634
EXPENDITURES: C
Debt Service-
Bond Principal 116,000 250,000 50,000 140,000 50.000 90,000 55,000 20,000 190.000 695.000
Interest and Fiscal Charges 26.815 71.272 7,471 423.618 16,740 49,125 29,000 3,400 30.083 27,359
Other 1,657 -~ 0 981 0 0 0 75 2,015 18,314 C
Total Expenditures 144,472 _ 322,414 57,471 564,599 66,740 139,125 84,000 23,475 222,098 740.673
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 45,686 2,545 (2.118) 78,030 20,388 21.145 (20,189) (10,248) (222.098) (740.039) C
OTHER FINANCING SOURCES
(USES):
Operating Transfers In 0 0 0 0 0 0 219.733 0 C
Operating Transfers Out 0 0 0 0 0 0 0 0 0
Bond Proceeds 0 -~ 0 0 0 0 0
Total Other Financing
Sources (Uses) 0 -~ 0 0 0 219,733 0 C
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND C
OTHER USES 45.686 2,545 (2.118) 78,030 20,388 21.145 (20.189) (10.248) (2.365) (740.039)
FUND BALANCE (DEFICIT) -
January 1 10.519 50,788 3.115 372,391 204,938 344.928 631,363 112,639 (17.776) 621,747 C
RESIDUAL EQUITY TRANSFERS
IN (OUT) -~ 0 0 0 0 0 0 0 C
FUND BALANCE (DEFrCIT) -
December 31 56205 $ = 53333 $ 997 $ 450421 $ 225 326 $ 366073 $ 611174 $ 102391 $ (20141) (t18292)
~
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G.O.
Improvement G.O. G.O. G.O. G.O. G.O. G.O. EDA Public G.O. G.O.
Refunding Improvement Improvement Improvement Improvement Improvement Improvement Project Improvement Improvement
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Revenue Bonds Bonds Bonds Totals
of 1986C/1997C of 1989 of 1993A of 1994C of 1994D of 1995A of 1996C of 1997 of 1997A of 19976 1997 1996
S 0 S 0 S 0 S 0 S 0 S 0 S 0 S 0 S 0$ 0 S 386,631 $ 332,428
0 0 0 0 0 0 0 0 0 0 868,657 839,203
129,091 13,509 55,849 140,390 609,728 281,337 154,040 0 925,222 184,675 2,537,182 2,515,585
' 0 0 0 0 0 0 0 0 0 0 183,573 194,294
52,632 3,356 6,553 9,173 35,288 51,419 39,755 629 23,337 2,265 280,374 563,051
0 0 0 0 0 0 0 0 0 0 0 92
181,723 16,865 62,402 149,563 645,016 332,756 193,795 629 948,559 186,940 4,256,417 4,444,653
' 1,225,000 300,000 365,000 115,000 3,705,000 205,000 50,000 0 0 0 7,621,000 3,551,000
89,829 102,029 110,291 57,904 170,899 125,709 31,896 35,525 84,458 115,335 1,608,758 1,373,773
' 0 0 0 0 0 0 0 0 0 21 24,205 25,469
1,314,829 402,029 475,291 172,904 3,875,899 330,709 81,896 35,525 84,458 115,356 9,253,963 4,950,742
(1,133,106) (385,164) (412,889) (23,341) (3,230,883) 2,047 111,899 (34,896) 864,101 71,584 (4,997,546) (505,589)
- , 0 438,064 0 255 0 0 0 0 0 0 658,052 581,441
0 0 0 0 0 0 0 0 0 0 0 (159)
614,611 0 0 0 0 0 0 53,326 5,028 2,680 675,645 1,207,079
- ' 614,611 438,064 0 255 0 0 0 53,326 5,028 2,680 1,333,697 1,788,361
- , (518,495) 52,900 (412,889) (23,086) (3,230,883) 2,047 111,899 18,430 869,129 74,264 (3,663,849) 1,282,772
' 1,538,279 (90,524) 580,116 281,392 3,569,374 1,073,613 189,660 0 0 0 9,476,562 7,848,274
0 0 0 0 (338,491) 0 430,644 0 0 0 92,153 345,516
S 1,019.784 S (37,624) S 167.227 S 258.306 $ 0 S 1.075.660 $ 732.203 S 18,430 S 869.129 $ 74264 S 5.904.866 S 9.476.562
60
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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 C
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31,1997 C
With Comparative Totals for December 31, 1996
C
Water Storm Sewer Bonds Bonds
Trunk Sewer Trunk of 1997A of I 997B Unfinaneed C
Proiect Project Project Project Project Projects
ASSETS
Cash and Investments $ 205,787 $ (122,472) $ 935,376 $ 145,102 $ 2,737,407 $ (829,494) C
Special Assessments Receivable-
Deferred 1,190,618 0 112,796 0 0 10,589
Delinquent 7,610 0 0 0 0 0
AccountslLoans Receivable 0 0 0 0 0 C
Interest Receivable 10,056 0 29,954 13,305 125,976 0
Due from Other Governmental Units 33,571 0 3,227 0 0 0
Prepaid Items 0 0 0 0 0 0 C
--
TOTAL ASSETS $ 1,447.642 $ (122.472) $ 1,081.353 $ 158.407 $ 2,863,383 $ (818,905)
C
LIABILITIES AND FUND
BALANCE (DEFICIT) C
LIABILITIES:
Accounts Payable $ 19,046 $ 0 $ 446 $ 6,664 $ 36,800 $ 12,972
Contracts Payable 0 0 0 47,894 186,608 61.642 C
Deferred Revenue 1,198,228 0 112,796 0 0 10,589
Total Liabilities 1,217,274 0 113,242 54,558 223,408 85,203
FUND BALANCE (DEFICIT) C
Unreserved -
Designated for Projects 230,368 0 968, III 103,849 2,639,975 0 C
Designated for Equipment 0 0 0 0 0 0
Undesignated 0 (122,472) 0 0 0 (904,108)
Total Fund Balance (Deficit) 230,368 (122.472) 968, III 103,849 2,639,975 (904,108)
C
TOTAL LIABILITIES
AND FUND
BALANCE (DEFICIT) $ 1,447,642 $ (I 22.472) $ 1.081.353 $ 158.407 $ 2,863,383 $ _(818,905) C
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I Tax Public
State Aid Pennanent
I City Revolving State Aid Increment Park Works Improvement Total
Buildings Projects Projects Proiects Dedication Project Revolving 1997 1996
$ 4,300 $ (276,598) $ 729,491 $ 2,038,436 $ 529,391 $ 1,007,074 $ 552,625 $ 7,656,425 $ 5,407,468
I 0 58,529 0 0 0 0 693,967 2,066,499 5,070,244
0 0 0 0 0 0 8,799 16,409 33,185
I 2,635 750 0 133,576 464 6,805 0 144,230 154,315
0 0 26,487 108,461 19,981 0 69,709 403,929 264,952
0 148,656 0 8,300 0 0 1,472 195,226 32,672
I 0 0 0 0 0 0 0 0 2,175
$ 6,935 $ 168,663) $ 755,978 $ 2,288.773 $ 549,836 $ 1,013,879 $ 1,326.572 $ 10.482.718 $ 10,965,011
I
I $ 0 $ 26,320 $ 1,241 $ 22,552 $ 500 $ 360,729 $ 3,949 $ 491,219 $ 579,193
0 42,682 0 6,871 0 112,449 0 458,146 339,920
I 0 58,529 0 133,008 0 0 702,766 2,215,916 5,270,839
0 127,531 1,241 162,431 500 473,178 706,715 3,165,281 6,189,952
I
6,935 0 754,737 2,126,342 0 540,701 619,857 7,990,875 8,152,087
I 0 0 0 0 549,336 0 0 549,336 363,580
0 (196,194) 0 0 0 0 0 (1,222,774) (3,740,608)
6,935 (196,194) 754,737 2,126,342 549,336 540,701 619,857 7,317,437 4,775,059
I
I $ 6,935 $ 168,663) $ 755,978 $ 2,288,773 $ 549 ,836 $ 1.013,879 $ 1.326.572 $ 10,482,718 $ 10,965,011
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I 61
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CITY OF ANDOVER. MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31,1996
Improvement Improvement Improvement Improvement Improvement
Water Stoml Sewer Bonds Bonds Bonds Bonds Bonds
Trunk Sewer Trunk of 1993A of 19940 of 1995A ofl996C of 1997A
~~ Proiect Proiect Proiect Project Proiect Proiect Proiect
REVENUES,
Special Assessments 174,21l $ 0 $ 157,894 $ 0 $ 0 $ 0 $ 0 $ 379,Il0
Intergovemmental-
State Aids 0 0 0 0 0 0 0 0
Other Revenue -
(nterest 1l,561 0 43,943 0 0 0 5.363 80,053
Park Dedication Fees 0 0 0 0 0 0 0 0
Refunds and Reimbursements 0 0 0 0 0 7,925 0 0
Miscellaneous ~I,037 3,289 44,704 0 0 0 0 0
Total Revenues 306,809 3.289 246,541 0 0 7,925 5,363 459,163
EXPENDITURES,
Capital Projects -
Capital Outlay 243,732 7,295 268,341 0 0 34 69,647 1,214,484
Interest 0 4,754 0 0 20,489 4,254 0 0
--
Total Expenditures ~3.732 12.049 268,341 0 20.489 4.288 69,647 1.214,484
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 63,077 (8,760) (21,800) 0 (20,489) 3,637 (64,284) (755.321)
OTHER FINANCING SOURCES (USES),
Operating Transfers In 656 0 12.103 0 0 0 16.590 0
Operating Transfers Out (729,5[0) (153.517) (225,893) 0 0 (3.799) (130.951) (1.333.233)
Bond Proceeds ~3,724 0 377.524 0 875,252 0 0 2,192.403
Total Other Financing Sources (Uses) __ill5.13O) (153,517) 163,734 0 875,252 (3,799) (114,361) 859.[70
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES (222,053) (162,277) 14[,934 0 854,763 (162) (178,645) 103,849
FUND BALANCE (DEFICIT)- January [ 452,421 39,805 826,177 (7[) (799,779) (132.952) 609,289 0
RESIDUAL EQUITY TRANSFERS 0 0 0 71 (54.984) 133,114 (430,644) 0
--
FUND BALANCE (DEFICIT)- December 31 $ 23~ (122472) 968.111 0 $ 0 $ 0 $ 0 $ [03.849
- ---=--~-
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I Improvement
Bonds State Aid Tax Public Pemlanent
of \9978 Unfmanced City Revolving State Aid Increment Park Works Improvement Total
Proiect Projects Buildings Projects Projects Projects Dedication Project Revolving 1997 1996
I 13.646 $ 83.394 0 $ 2,423 $ 856 $ 0 $ 0 $ 0 $ 464.305 1,275,839 919.096
0 0 0 808.853 54,4\3 0 50,000 0 0 9\3,266 711,488
I 221,003 0 87.389 0 49,120 \32,439 32.530 27.\9\ 74,116 764.708 583,618
0 0 0 0 0 0 600.281 0 0 600.281 172.233
I 0 0 20.622 0 0 0 2,718 0 2,000 33.265 12,870
0 0 0 0 0 21,887 5.741 0 0 196.658 312.342
234.649 83,394 108.011 811,276 \04,389 154.326 691,270 27,\9\ 54Q,421 3,784,017 2,711,647
I 3,006,443 335,676 848,026 892.2\2 30,909 2.342,961 351,493 1,730.361 654.568 11,996,182 7,028,688
0 67.430 0 0 0 0 0 0 0 96,927 114,090
I 3.006,443 403,106 848,026 892.212 30.909 2,342,961 351.493 1.730,361 654.568 \2,093,109 7.\42,778
I (2,771,794) (319.712) (740.015) (80,936) 73,480 (2.188.635) 339,777 (\,703,170) (114.147) (8.309.092) (4,43\.13\)
167 2,356,894 \,168,886 140,568 857 0 2.099 0 \.952,833 5.651,653 \,397,201
I 0 (1.926,787) 0 0 (427,842) 0 0 0 (\,320,943) (6,252,475) (\.979,\23)
5,411,602 0 0 0 0 0 0 2.243,940 0 11,544.445 2,578.634
5,411,769 430,107 \,168.886 140,568 (426.985) 0 2,099 2,243,940 631.890 10,943.623 \,996,712
I
I 2.639.975 110.395 428,871 59.632 (353.505) (2,\88,635) 341,876 540,770 517,743 2,634,531 (2,434.419)
0 (2.130.046) (421.936) (255,826) \,108,242 4.314,977 207,460 (69) 957,367 4.775.059 7.554,994
I 0 \.115,543 0 0 0 0 0 0 (855.253) (92.\53) (345,5\6)
2.639.975 (904.108) 6.935 096.1941 754.737 2.126.342 $ 549,336 $ 540 70 I 619.857 7.317.437 $ 4775,059
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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
ENTERPRISE FUNDS Q
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals for December 31, 1996
Water Sewer
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 953,742 $ 574,311
Special Assessments Receivable -
Deferred 0 8,462
Delinquent 0 4,352
Accounts Receivable 189,281 208,817
Interest Receivable 34,534 19,243
Due From Other Governmental Units 0 13,362
Inventory 12,690 0
Prepaid Items 100 45,859
Total Current Assets 1,190,347 874,406
PROPERTY, PLANT AND EQUIPMENT:
Furniture and Equipment 621 147,813
Machinery 931,860 0
Collection and Distribution System 9 13,897,294
Total Cost 11,414,775 14,045,107
Less: Accumulated Depreciation (2,198,501) (3,085,174)
Net Property, Plant and Equipment 9,216,274 10,959,933
TOTAL ASSETS $ 10,406,621 $ 11,834,339
LIABILITIES AND FUND EQUITY
LIABILITIES:
Current Liabilities:
Accounts Payable $ 18,247 $ 5,213
Accrued Items 1 667 Q
Due to Other Governmental Units 634 0
Deferred Revenue 0 2
Total Current Liabilities 20,366 7,912
COMPENSATED ABSENCES PAYABLE 14,855 13,575
Total Liabilities 35,221 21,487
FUND EQUITY:
Contributed Capital 9,124,401 10,896,582
Retained Earnings:
Reserved 0 0
Unreserved 1,246,999 916,270
Total Fund Equity 10,371,400 11,812,852
TOTAL LIABILITIES AND
FUND EQUITY $ 10,406,621 $ 11,834,339
j - ---- -
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I Totals
1997 1996
I $ 1,528,053 $ 1,031,096
I 8,462 8,462
4,352 5,253
398,098 601,096
I 53,777 29,795
13,362 15,777
12,690 11,729
I 45,959 48,747
2,064,753 1,751,955
I 768,984 700,502
931,860 898,814
23,759,038 23,759,038
I 25,459,882 25,358,354
(5,283,675) (4,680,406)
20,176,207 20,677,948
I $ 22,240,960 $ 22,429,903
I
$ 23,460 $ 20,416
I 2,152 1,414
634 2,638
2,032 2,932
I 28,278 27,400
28,430 18,743
I 56,708 46,143
I 20,020,983 20,496,163
0 44,307
2,163,269 1,843,290
I 22,184,252 22,383,760
I $ 22,240,960 $ 22,429,903
63
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CITY OF ANDOVER, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
Water
OPERATING REVENUES:
User Charges
Meters
Permit Fees
Penalties
Other
Total Operating Revenues
$
641,203
37,180
12,082
11,112
294
701,871
OPERATING EXPENSES:
Personal Services
Supplies
Other Services and Charges
Disposal Charges
Depreciation
Total Operating Expenses
211,315
44,679
157,763
o
302,447
716,204
OPERATING INCOME (LOSS)
(14,333)
NON-OPERATING REVENUES:
Interest on Investments
Other
Total Non-Operating Revenues
63,059
o
63,059
48,726
o
(131,000)
(131,000)
(82,274)
197,235
1,132,038
0,
INCOME (LOSS) BEFORE OPERATING TRANSFERS
Operating Transfers In
Operating Transfers Out
Total Operating Transfers
NET INCOME (LOSS)
Add: Depreciation Charged Against Contributed Capital
RETAINED EARNINGS - Janua.ry 1
RESIDUAL EQUITY TRANSFER
RETAINED EARNINGS - December 31
$ 1,246,999
----=--~
Sewer
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$
850,704
o
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13,202
160
864,066
128,423
4,797
43,301
518,571
300,822
995,914
(131,848)
24,614
o
24,614
(107,234)
o
(10,000)
(10,000)
(117,234)
277,945
755,559
o
$
916,270
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=
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Totals
-
I 1997 1996
-
$ 1,491,907 $ 1,459,256
-
- I 37,180 38,803
- 12,082 12,686
24,314 19,408
- 454 131
I 1,565,937 1,530,284
I 339,738 284,465
49,476 42,186
201,064 146,470
I 518,571 483,132
603,269 583,141
1,712,118 1,539,394
I (146,181) (9,110)
I 87,673 69,502
0 216
I 87,673 69,718
(58,508) 60,608
I 0 30,500
(141,000) (122,630)
I (141,000) (92,130)
(199,508) (31,522)
I 475,180 468,482
1,887,597 1,485,711
I 0 (35,074)
I $ 2,163,269 $ 1,887,597
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CITY OF ANDOVER, MINNESOTA ~
ENTERPRISE FUNDS ~
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1997 C
With Comparative Totals for the Year Ended December 31, 1996
Totals ~
Water Sewer 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Loss $ (14,333) $ (131,848) $ (146,181) $ (9,110) C
Adjustments to Reconcile Operating Loss to Net
Cash Provided by Operating Activities:
Depreciation 302,447 300,822 603,269 583,141 C
Other Revenues 0 0 0 216
Change in Assets and Liabilities:
Decrease in Special Assessments Receivable 0 901 901 19 C
(Increase) Decrease in Accounts Receivable 135,482 67,516 202,998 (233,478)
(Increase) Decrease in Due From
Other Governmental Units 0 2,415 2,415 (15,604) I
(Increase) in Inventory (961) 0 (961) (2,037) C I
(Increase) Decrease in Prepaid Items 2,538 250 2,788 (1,222)
Increase (Decrease) in Accounts Payable 5,409 (2,365) 3,044 9,816
Increase in Accrued Items 6,170 4,255 10,425 8,429 C
Increase (Decrease) in Due to Other
Governmental Units 333 (2,337) (2,004) (41)
(Decrease) in Deferred Revenue 0 (900) (900) (19) C
Total Adjustments 451,418 370,557 821,975 349,220
Net Cash Provided by Operating Activities 437,085 238,709 675,794 340,110
C
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers To Other Funds (131 ,000) (10,000) (141,000) (127,204) ~
~
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES: C
Acquisition of Fixed Assets (80,145) (21,383) (101,528) (75,432)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 47,569 16,122 63,691 59,416 ~
NET INCREASE IN CASH AND CASH EQUIVALENTS 273,509 223,448 496,957 196,890
CASH AND CASH EQUIVALENTS, JANUARY 1 680,233 350,863 1,031,096 834,206 C
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 953,742 $ 574,311 $ 1 ,528,053 $ 1,031,096 C
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I CITY OF ANDOVER, MINNESOTA
-
~ COMPARATIVE BALANCE SHEET - WATER FUND
,
-
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c Year Ended December 31
c
I 1997 1996
ASSETS
- CURRENT ASSETS:
=
I Cash and Cash Equivalents $ 953,742 $ 680,233
Accounts Receivable 189,281 324,763
- Interest Receivable 34,534 19,044
Inventory 12,690 11,729
- I Prepaid Items 100 2,638
Total Current Assets 1,190,347 1,038,407
I PROPERTY, PLANT AND EQUIPMENT:
- Furniture and Equipment 621,171 574,072
-
Machinery 931,860 898,814
I Distribution System 9,861,744 9,861,744
Total Cost 11,414,775 11,334,630
- Less: Accumulated Depreciation (2,198,501 ) (1,896,054)
I Net Property, Plant and Equipment 9,216,274 9,438,576
- $
TOTAL ASSETS 10,406,621 $ 10,476,983
- I
LIABILITIES AND FUND EQUITY
I CURRENT LIABILITIES:
Accounts Payable $ 18,247 $ 12,838
Accrued Items 1,485 780
I Due to Other Governmental Units 634 301
Total Current Liabilities 20,366 13,919
COMPENSATED ABSENCES PAYABLE 14,855 9,390
I Total Liabilities 35,221 23,309
- FUND EQUITY:
I Contributed Capital 9,124,401 9,321,636
Retained Earnings:
Reserved 0 44,307
I Unreserved 1,246,999 1,087,731
Total Fund Equity 10,371,400 10,453,674
I TOTAL LIABILITIES AND FUND EQUITY $ 10,406,621 $ 10,476,983
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I 66
CITY OF ANDOVER, MINNESOTA
WATER FUND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1997 and 1996
1997
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Percent
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Amount
Percent
Amount
OPERATING REVENUES:
User Charges $ 641,203 91.4 % $ 657,448
Meters 37,180 5,3 38,803
Permit Fees 12,082 1.7 12,686
Penalties 11,112 1.6 8,789
Other 294 0,0 131
Total Operating Revenues 701,871 100,0 717,857
OPERATING EXPENSES:
Personal Services 211,315 30.1 164,315
Supplies 44,679 6.4 36,305
Other Services and Charges 157,763 22.5 100,509
Depreciation 302,447 43.1 290,076
Total Operating Expenses 716,204 102,1 591,205
OPERATING INCOME (LOSS) (14,333) -2,1 126,652
NON-OPERATING REVENUES:
Interest on Investments 63,059 9.0 41,130
Sale of Used Equipment 0 0,0 216
Total Non-Operating Revenues 63,059 9.0 41,346
INCOME BEFORE OPERATING TRANSFERS 48,726 6.9 % 167,998
Operating Transfers Out (131,000) (105,040)
NET INCOME (LOSS) (82,274) 62,958
Add: Depreciation Charged Against
Contributed Capital 197,235 194,584
RETAINED EARNINGS - January 1 1,132,038 874,496
RETAINED EARNINGS - December 31 $ 1,246,999 $ 1, 132,038
-~-
91.6 %
5.4
1.8
1.2
0.0
100.0
22,9
5,1
14,0
40.4
82.4
17,6
5,8
0,0
5.8
23.4 %
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I CITY OF ANDOVER, MINNESOTA
COMPARATIVE BALANCE SHEET - SEWER FUND
I Year Ended December 31
1997 1996
I ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 574,311 $ 350,863
I Special Assessments Receivable -
Deferred 8,462 8,462
Delinquent 4,352 5,253
I Accounts Receivable 208,817 276,333
~ Interest Receivable 19,243 10,751
-
~ Due From Other Governmental Units 13,362 15,777
- I Prepaid Items 45,859 46,109
. Total Current Assets 874,406 713,548
I PROPERTY, PLANT AND EQUIPMENT:
Furniture and Equipment 147,813 126,430
Collection System 13,897,294 13,897,294
- I Total Cost 14,045,107 14,023,724
Less: Accumulated Depreciation (3,085,174) (2,784,352)
Net Property, Plant and Equipment 10,959,933 11,239,372
I TOTAL ASSETS $ 11,834,339 $ 11,952,920
I LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 5,213 $ 7,578
I Accrued Items 667 634
Due to Other Governmental Units 0 2,337
Deferred Revenue 2,032 2,932
I Total Current Liabilities 7,912 13 ,481
COMPENSATED ABSENCES PAYABLE 13,575 9,353
I Total Liabilities 21,487 22,834
FUND EQUITY:
I Contributed Capital 10,896,582 11,174,527
Retained Earnings:
Unreserved 916,270 755,559
I Total Fund Equity --11.8l2,8~ 11,930,086
TOTAL LIABILITIES AND FUND EQUITY $ 11,834,339 $ 11,952,920
I
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I 68
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CITY OF ANDOVER, MINNESOTA
m 1
SEWER FUND i
i
STATEMENT OF REVENUES, EXPENSES, AND I
C I
I
CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1997 and 1996 I
~
1997 1996 I
Amount Percent Amount Percent i
C i
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OPERATING REVENUES: i
User Charges $ 850,704 98.5 % $ 801,808 98,7 % I
Penalties 13,202 1.5 10,619 1.3 C !
Other 160 0.0 0 0.0
Total Operating Revenues 864,066 100,0 812,427 100,0
OPERATING EXPENSES: C
Personal Services 128,423 14.9 120,150 14,8
Supplies 4,797 0,6 5,881 0,7 C
Other Services and Charges 43,301 5,0 45,961 5,6
Disposal Charges 518,571 60,0 483,132 59.5
Depreciation 300,822 34,8 293,065 36.1 C
Total Operating Expenses 995,914 115,3 948,189 116,7
OPERATING LOSS (131,848) (15,3) (135,762) (16,7) C
NON-OPERATING REVENUES:
Interest on Investments 24,614 2,9 28,372 3,5 C
LOSS BEFORE OPERATING TRANSFERS (107,234) (12.4)% (107,390) (13,2)%
Operating Transfers In 0 30,500 C
Operating Transfers Out (10,000) (17,590)
Total Operating Transfers (10,000) 12,910 ~
(117,234) (94,480) ..
NET LOSS
Add: Depreciation Charged Against C
Contributed Capital 277,945 273,898
RETAINED EARNINGS - January 1 755,559 611,215 C
RESIDUAL EQUITY TRANSFER 0 (35,074) C
RETAINED EARNINGS - Decemb,~r 31 $ 916,270 $ 755,559
C
69 C
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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 ofthe government and to other
government units, on a cost reimbursement basis,
CITY OF ANDOVER, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 3 I, 1997
With Comparative Totals for December 31, 1996
Central
Equipment Risk
Maintenance Management
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ (1,027) $ 99,269
Accounts Receivable 173 0
Interest Receivable 366 2,825
Inventory 15,696 0
Prepaid Items 0 465
TOTAL ASSETS $ 15,208 $ 102,559
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts Payable $
Accrued Items
Due to Employees
Total Liabilities
3,266 $
1,406
o
4,672
641 $
271
6,747
7,659
FUND EQUITY:
Retained Earnings -
Unreserved
94,900
10,536
TOTAL LIABILITIES AND
FUND EQUITY $
15,208 $
102,559 $
Totals
December 31
1997 1996
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$
98,242 $
173
3,191
15,696
465
117,767 $
62,209
893
1,375
19,661
562
84,700
$
3,907 $
1,677
6,747
12,331
15,253
120
6,073
21,446
105,436
63,254
117,767 $
84,700
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CITY OF ANDOVER, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31,1997
With Comparative Totals for the Year Ended December 31, 1996
Central
Equipment
Maintenance
Totals
December 31
1997 1996
Risk
Management
OPERATING REVENUES:
User Charges to other City Funds
310,521 $
62,762 $
373,283 $
$
253,268
OPERATING EXPENSES:
Personal Services
Supplies
Other Services and Charges
Total Operating Expenses
108,619
175,613
57,884
342,116
31,167
97,575
174,973
26,146
298,694
11,827
11,044
640
31,738
43,422
19,340
92,148
160,363
83,195
335,706
(82,438)
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES:
Interest Income
5,015
472
4,543
2,777
INCOME (LOSS) BEFORE OPERATING
TRANSFERS
23,883
6,000
29,883
36,182
6,000
42,182
(79,661)
39,500
(40,161)
12,299
o
Operating Transfers In
12,299
NET INCOME (LOSS)
RETAINED EARNINGS (DEFICIT)-
January 1
(1,763)
10,536 $
65,017
94,900 $
63,254
105,436 $
103,415
63,254
RETAINED EARNINGS - December 31 $
71
CITY OF ANDOVER, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1997
With Comparative Totals for the Year Ended December 31, 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income (Loss)
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:
Change in Assets and Liabiliti(,s:
(Increase) Decrease in Accounts
Receivable
Decrease in Inventory
(Increase) Decrease in Prepaid Items
Increase (Decrease) in Accounts
Payable
Increase (Decrease) in Accrued Items
Total Adjustments
Central
Equipment Risk
Maintenance Management
$ 11 ,827 $ 19,340 $
Totals
Year Ended December 31
1997 1996
31,167 $
(82,438)
Net Cash Provided (Used) by Operating Activities
720 0 720 (893)
3,965 0 3,965 8,761
0 97 97 (562)
(10,649) (697) (11,346) 801
(217) 2,448 2,231 5,010
(6,181) 1,848 (4,333) 13,117
5,646 21,188 26,834 (69,321)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers From Other Funds
0 6,000 6,000 39,500
106 3,093 3,199 2,238
5,752 30,281 36,033 (27,583)
(6.779) 68,988 62,209 89,792
$ (1,027) $ 99,269 $ 98,242 $ 62,209
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest Income
Net Increase (Decrease) in Cash and
Cash Equivalents
Cash and Cash Equivalents, January 1
Cash and Cash Equivalents, December 31
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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.
CITY OF ANDOVER, MINNESOTA
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals for December 31, 1996
Expendable
Trust
Administrative
Trust
ASSETS:
Cash and Investments
Cash With Trustee
Accounts Receivable
Interest Receivable
$
TOTAL ASSETS
$
LIABILITIES AND FUND BALANCE:
Accounts Payable
Deposits Payable
Due to Employees
Total Liabilities
$
FUND BALANCE:
Unreserved -
Designated for Administration
TOTAL LIABILITIES AND
FUND BALANCE
$
32,138
o
o
1,156
33294
33,294
33.294
Agency
$ 396,904
307,954
0
0
$ 704.858
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$
23,212
373,692
307,954
704,858
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$
704.858
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I Totals
1997 1996
I $ 429,042 $ 433,370
307,954 192,126
0 17,520
I 1,156 2,871
-
-
$ 738.152 $ 645.887
I
-I $ 23,212 $ 5,486
373,692 345,840
307,954 192,126
I 704,858 543,452
I 33,294 102,435
I $ 738.152 $ 645.887
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I 73
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CITY OF ANDOVER, MINNESOTA
EXPENDABLE TRUST FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES Thf FUND BALANCE - ADMINISTRATIVE TRUST FUND
Year Ended December 31
1997 1996
REVENUES:
Miscellaneous -
Interest
1,859 $
6,733
$
EXPENDITURES
o
EXCESS OF REVENUES OVER EXPENDITURES
1,859
6,733
OTHER FINANCING USES:
Operating Transfers Out (71,000) (71,000)
EXCESS OF REVENUES UNDER EXPENDITURES
AND OTHER USES (69,141) (64,267)
FUND BALANCE - January 1 102,435 166,702
FUND BALANCE - December 31 $ 33294 $ 102.435
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1 I CITY OF ANDOVER, MINNESOTA
AGENCY FUNDS
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i I COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
I Year Ended December 31, 1997
j I Balance Balance
1 January 1, December 31,
,
j
. 1997 Additions Deductions 1997
. I ESCROW FUND
~
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~ ASSETS
Cash and Temporary Investments $ 333,806 $ 396,904 $ 333,806 $ 396,904
I Accounts Receivable 17,520 0 17,520 0
Total Assets $ 351,326 $ 396,904 $ 351,326 $ 396,904
-
I LIABILITIES
~ Accounts Payable $ 5,486 23,212 5,486 $ 23,212
Deposits Payable 345,840 373,692 345,840 373,692
- I Total Liabilities $ 351,326 $ 396,904 $ 351,326 $ 396,904
~
ICMA DEFERRED COMPENSATION PLAN
- I
.
- ASSETS
- Cash with Trustee $ 16,073 $ 4,736 $ 2,721 $ 18,088
. I LIABILITIES
Due to Employees $ 16,073 $ 4,736 $ 2,721 $ 18,088
I PEBSCO DEFERRED COMPENSATION PLAN
I ASSETS
Cash with Trustee $ 176,053 $ 116,801 $ 2,988 $ 289,866
I LIABILITIES
Due to Employees $ 176,053 $ 116,801 $ 2,988 $ 289,866
I TOTALS - ALL AGENCY FUNDS
ASSETS
I Cash and Temporary Investments $ 333,806 $ 396,904 $ 333,806 $ 396,904
Cash with Trustee 192,126 121,537 5,709 307,954
Accounts Receivable 17,520 0 17,520 0
I Total Assets $ 543,452 $ 518,441 $ 357,035 $ 704,858
LIABILITIES
I Accounts Payable $ 5,486 $ 23,212 $ 5,486 $ 23,212
Deposits Payable 345,840 373,692 345,840 373,692
Due to Employees 192,126 121,537 5,709 307,954
I Total Liabilities $ 00_ 543,452 $ 518,441 $ ~. 357,035 $ 704,858
75
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CITY OF ANDOVER, MINNESOTA
GENERAL FIXED ASSETS
ACCOUNT GROUP
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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.
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
Year Ended December 31, 1997
Balance Balance
January 1, December 31,
1997 Additions Disposals 1997
GENERAL FIXED ASSETS:
Land and Improvements $ 3,948,835 $ 21,915 $ 0 $ 3,970,750
Buildings and Improvements 2,685,704 240,947 200 2,926,451
Furniture and Equipment 592,775 153,360 870 745,265
Machinery and Equipment 3,310,706 489,292 0 3,799,998
INVESTMENT IN GENERAL
FIXED ASSETS $ 10,538,020 $ 905,514 $ 1,070 $ 11,442,464
76
CITY OF ANDOVER, MINNESOTA
GENERAL LONG-TERM DEBT
ACCOUNT GROUP
General obligation bonds and other forms oflong-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 ofthe 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 of issuance.
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CITY OF ANDOVER, MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT
December 31
1997 1996
AMOUNTS AVAILABLE AND TO BE PROVIDED FOR THE
RETIREMENT OF GENERAL LONG-TERM DEBT
Amount Available in Debt Service Funds $ 5,904,866 $ 9,476,562
Amounts to be Provided 25,571,653 17,185,587
$ 31,476,519 $ 26,662,149
GENERAL LONG-TERM DEBT
Special Assessments on City Property $ 145,051 $ 157,160
Compensated Absences Payable 156,468 123,989
Bonds and Certificates ofIndebtedness Payable 31,175,000 26,381,000
$ 31,476,519 $ 26,662,149
77
SUPPLEMENTARY INFORMATION
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CITY OF ANDOVER, MINNESOTA
SCHEDULE OF TAX CAPACITY RATES AND LEVIES
TAXES PAYABLE IN 1997:
Net Tax Capacity
General Fund
Bond Funds
Watershed Levy
$ 13,342,748
Tax Capacity Net
Rate Levy
16.831 $ 2,371,301
2.744 386,570
0.229 14,090
19.804 $ 2,771,961
-
.
TAXES PAYABLE IN 1996:
Net Tax Capacity
General Fund
Bond Funds
Watershed Levy
$ 12,019,964
Tax Capacity Net
Rate Levy
16.801 $ 2,158,738
2.573 330,612
0.223 13,395
19.597 $ 2,502,745
78
m
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS ~
FOR TAX INCREMENT FINANCING
DEVELOPMENT DISTRICT 1-1 ~
A TAX INCREMENT FINANCING DISTRICT
December 31, 1997
C
Accounted
Original for in Current Amount C
Budget Prior Years Year Remaining
SOURCES OF FUNDS:
Tax Increments $ 11,645,380 $ 2,667,163 $ 270,892 $ 8,707,325 C
Special Assessments 0 11,625 5,472 (17,097)
State Credits 0 57,266 0 (57,266)
Bond Proceeds 9,380,600 4,107,589 0 5,273,011
Land Sales 0 227,142 0 (227,142) C
Interest 97,470 590,318 129,791 (622,639)
Miscellaneous 0 0 0 0
Total Sources of Funds 21,123,450 7,661,103 406,155 13,056,192 C
USES OF FUNDS:
Property Acquisition 9,399,040 5,432,464 2,264,761 1,701,815 C
Administrative Costs 730,560 128,939 24,387 577,234
Bond Payments -
Principal 6,575,638 1,046,475 127,420 5,401,743 C
Interest and Other 4,704,115 326,861 251,001 4,126,253 I
Total Uses of Funds 21,409,353 . 6,934,739 2,667,569 11,807,045
DISTRICT BALANCE (285,903) 726,364 (2,261,414) 1,249,147 C I
I
Transfers to Other Funds 0 (9,868) 0 9,868 I
C
FUNDS REMAINING
(DEFICIT) $ (285,903) $ 716,496 $ (2,261,414) $ 1,259,015 C
C
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79
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1 CITY OF ANDOVER, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR TAX INCREMENT FINANCING
1 DEVELOPMENT DISTRICT 1-2
A TAX INCREMENT FINANCING DISTRICT
December 31, 1997
1
Accounted
1 Original for in Current Amount
Budget Prior Years Year Remaining
SOURCES OF FUNDS:
I Tax Increments $ 5,125,771 2,373,624 597,765 $ 2,154,382
Special Assessments 0 0 0 0
State Credits 0 277 0 (277)
1 Bond Proceeds 12,338,900 7,133,299 0 5,205,601
Land Sales 0 7,959 0 (7,959)
Interest 4,500 214,301 17,565 (227,366)
1 Miscellaneous 0 165,078 21,887 (I 86,965)
Total Sources of Funds 17,469,171 9,894,538 637,217 6,937,416
1 USES OF FUNDS:
Property Acquisition 11,211,335 2,989,282 0 8,222,053
- Administrative Costs 498,785 115,349 53,813 329,623
1 Bond Payments -
Principal 5,314,362 1,278,525 152,580 3,883,257
Interest 3,612,464 990,644 238,482 2,383,338
Total Uses of Funds 20,636,946 5,373,800 444,875 14,818,271
I DISTRICT BALANCE (3,167,775) 4,520,738 192,342 (7,880,855)
1 Transfers to Other Funds 0 0 0 0
FUNDS REMAINING
1 (DEFICIT) $ (3,167,775) $ 4,520,738 $ 192,342 $ (7,880,855)
1
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STATISTICAL INFORMATION
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CITY OF ANDOVER, MINNESOTA
GENERAL FUND REVENUES BY SOURCE
Years 1988 Through 1997
Licenses
Fiscal and Intergovernmental Charges for Fines and Other
Year Taxes Permits Revenue Services Forfeits Revenue Total
1988 $ 713,219 $ 236,555 $ 559,246 $ 31,404 $ 45,049 $ 84,680 $ 1,670,153
1989 712,017 259,083 659,330 58,754 51,614 73,909 1,814,707
1990 911,255 212,793 616,722 75,962 46,650 70,060 1,933,442
1991 1,017,774 230,298 640,318 82,604 31,750 71,290 2,074,034
1992 1,107,808 430,024 614,266 120,708 39,565 87,370 2,399,741
1993 1,241,114 470,371 710,910 152,868 38,178 75,512 2,688,953
1994 1,472,108 410,733 745,156 227,960 40,496 91,323 2,987,776
1995 1,810,213 410,212 747,627 549,606 46,152 31,986 3,595,796
1996 2,180,470 390,327 857,689 447,199 57,125 169,049 4,101,859
1997 2,383,965 456,413 988,814 578,221 48,800 258,087 4,714,300
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81
CITY OF ANDOVER, MINNESOTA
GENERAL FUND EXPENDITURES BY FUNCTION
Years 1988 Through ~997
Fiscal General Public Public Parks and
Year Government Safety Works Sanitation Recreation
1988 $ 521,775 $ 496,710 $ 333,978 $ . 12,030 $ 240,574
1989 645,521 705,415 296,275 18,658 218,571
1990 593,778 754,914 307,046 29,168 261,449
1991 579,797 805,393 374,138 14,831 245,097
1992 672,936 908,312 442,176 28,976 204,267
1993 720,178 937,371 520,802 36,904 232,809
1994 804,726 970,174 625,805 51,522 294,158
1995 932,460 1,060,210 637,551 34,795 329,416
1996 1,068,585 1,320,680 947,472 60,517 455,517
1997 1,252,047 1,409,087 1,044,183 95,632 383,059
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Economic
Recycling Development Unallocated Total
$ 0 $ 0 $ 136,209 $ 1,741,276
20,112 0 97,797 2,002,349
39,567 14,289 129,589 2,129,800
46,771 17,447 72,521 2,155,995
39,622 17,659 77,060 2,391,008
50,461 22,836 53,691 2,575,052
49,574 21,916 86,278 2,904,153
58,260 22 93,546 3,146,260
55,170 0 154,085 4,062,026
62,281 0 212,503 4,458,792
82
m I
CITY OF ANDOVER, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS ~
Years 1988 Through 1997
Percentage ~
Collection Percentage Collection of Total
of Current of Levy of Prior Total Collections
Year Total Levy Year's Levy Collected Years' Levy Collections to Levy C
1988 $ 995,590 $ 978,595 98.29 % $ 16,832 $ 995,427 99.98 % I
1989 1,006,409 987,289 98.10 13,439 1,000,728 99.44 C
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 C
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 C
1994 1,806,293 1,774,507 98.24 43,566 1,818,073 100.65
1995 2,139,278 2,114,587 98.85 44,084 2,158,671 100.91 C
1996 2,083,031 2,075,336 99.63 29,231 2,104,567 101.03
1997 2,332,211 2,306,999 98.92 27,249 2,334,248 100.09 C
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS C
Years 1988 Through 1997
Percentage C
Collection Percentage Collection of Total
of Current of Levy of Prior Total Collections
Year Total Levy Year's Levy Collected Years' Levy Collections to Levy
1988 $ 1,205,379 $ 1,091,675 90.57 % $ 83,419 $ 1,175,094 97.49 % C
1989 1,178,982 1,097,880 93.12 57,987 1,155,867 98.04
C
1990 1,620,500 1,509,902 93.18 210,132 1,720,034 106.14
1991 1,450,030 1,249,889 86.20 38,964 1,288,853 88.88 C
1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34
1993 816,859 793,128 97.09 68,760 861,888 105.51 C
1994 557,611 505,500 90.65 44,004 549,504 98.55
1995 569,629 517,981 90.93 28,672 546,653 95.97 C
1996 573,477 531,081 92.61 28,594 559,675 97.59
1997 511,834 494,281 96.57 27,445 521,726 101.93 C
Note: Tax levy is net of amounts paid by the State of Minnesota through Homestead and Agricultural Credit
Aid (HACA) and Equalization Aid. e
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CITY OF ANDOVER, MINNESOTA
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
March 5, 1998
Honorable Mayor and City Council
City of Andover
Andover, Minnesota
We have audited the financial statements of City of Andover, Minnesota, as of and for the year
ended December 31, 1997, and have issued our report thereon dated March 5, 1998 . We
conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General ofthe United States. Because the City does not maintain fixed asset records
which provide complete accounting control over the quantities and cost of its general fixed
assets, we issued a qualified opinion on the City's general purpose financial statements.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions oflaws,
regulations, contracts and grants, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance that
are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion
on the financial statements and not to provide assurance on the internal control over financial
reporting. However, we noted certain matters involving the internal control over financial
reporting and its operation that we consider to be reportable conditions. Reportable conditions
involve matters coming to our attention relating to significant deficiencies in the design or
operation ofthe internal control over financial reporting that, in our judgment, could adversely
affect the City's ability to record, process, summarize and report financial data consistent with the
assertions of the Council in the financial statements. Reportable conditions are described on the
following page:
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1. The City does not maintain adequate historical cost fixed asset records.
A material wealmess is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements
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 over financial reporting would not
necessarily disclose all matters in the internal control that might be reportable conditions and,
accordingly, would not necessarily disclose all reportable conditions that are also considered to
be material wealmesses. However, we do not believe the reportable condition described above is
a material wealmess. We also noted other matters involving the internal control over financial
reporting that we have reported to the Council of the City of Andover, Minnesota in a separate
letter dated March 5,1998.
This report is intended for the information of the council and administration. However, this
report is a matter of public record and its distribution is not limited.
h/1,~~1#:
KERN, DEWENTER, VIERE, LTD.
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CITY OF ANDOVER, MINNESOTA
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH MINNESOTA STATUTES
March 5, 1998
Honorable Mayor and City Council
City of Andover
Andover, Minnesota
We have audited the financial statements of the City of Andover, Minnesota, for the year ended
December 31, 1997, and have issued our report thereon dated March 5, 1998.
We conducted our audit in accordance with generally accepted auditing standards and the
provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated
by the Legal Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the
audit included such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main
categories of compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, and claims and disbursements. Our study included all
ofthe listed categories.
The results of our tests indicate that for the items tested the City of Andover, Minnesota,
complied with the material terms and conditions of applicable legal provisions. Further, for the
items not tested, based on our audit and the procedures referred to above, nothing came to our
attention to indicate that the City of Andover, Minnesota, had not complied with such legal
provIsIOns.
This report is intended solely for the use ofthe City and should not be used for any other
purpose. However, this report is a matter of public record and its distribution is not limited.
h/1,!:w4-/~ ~
KERN, DEWENTER, VIERE, LTD.
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CITY OF ANDOVER, MINNESOTA
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES
CURRENT YEAR FINDINGS: None
PRIOR YEAR FINDINGS: None
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