The URL can be used to link to this page

Home My WebLink About1998 CAFR I I ~ I I = I I D I I I 11 , II 1 j; c a I I / / -- CITY OF ANDOVER, MINNESOTA ANOKA COUNTY AUDITED FINANCIAL STATEMENTS As of December 31, 1998 C t C C C C ~ c ~ ~ ~ i!.1 ... ~ IiII ~.' ~ .~' .; I i~ I~ I~ I~ Or I I --- -j - . I m ~ ~ m m I ~ I = a I :a , lD la Ie Ie J , C C C 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.. ........... ................... ........ ..... ........ ................... .......... ........ .... ......... LRR WMO Fund ................. ............. .................... ........ ................ ........................ Drainage and Mapping Fund ............................................................................... EDA General Fund .............................................................................................. Trail and Transportation Fund ............................................................................. Septic Disposal Fund ................. ....... ... ............................... .......... ....................... Capital Equipment Reserve Fund ........................................................................ Developer Sealcoating Fund ............ .................. ........... .......... ..... .... ....... ..... ........ Oak Wilt 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............ ......... ................... ........ ... ...... ... ... ....... ................. ...... ........ ...... .... 1 2 4 5 6 7 8 9 37 38 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 c c c c c c c c c c ~ ~ ~ ~ ~ ~ c C Or I I I I I a I a II I I I I a I ~ C C ~ -- CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - (Continued) Enterprise Funds - Combining Balance Sheet.................................................................................... 61 Combining Statement of Revenues, Expenses and Changes in Retained Earnings .............................................................................................. 62 Combining Statement of Cash Flows .................................................................. 63 Comparative Balance Sheet - Water Fund........................................................... 64 Statement of Revenues, Expenses and Changes in Retained Earnings- Water Fund......................................................................................................... 65 Comparative Balance Sheet - Sewer Fund........................................................... 66 Statement of Revenues, Expenses and Changes in Retained Earnings - Sewer Fund ........................................................................................................ 67 Internal Service Funds - Combining Balance Sheet.................................................................................... 68 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ............................................................................................................. 69 Combining Statement of Cash Flows .................................................................. 70 Trust and Agency Funds - Combining Balance Sheet.................................................................................... 71 Statement of Revenues, Expenditures and Changes in Fund Balance- Administrative Expendable Trust Fund............................................................. 72 Statement of Changes in Assets and Liabilities - Agency Funds ........................ 73 General Fixed Assets Account Group - Statement of Changes in General Fixed Assets ................................................... 74 General Long-Term Debt Account Group - Statement of General Long-Term Debt ............................................................... 75 SUPPLEMENTARY INFORMATION - Schedule of Tax Capacity Rates and Levies.............................................................. 76 Schedule of Sources and Uses of Public Funds for Andover Tax Increment Financing Development District 1-1........................................................................ 77 Schedule of Sources and Uses of Public Funds for Andover Tax Increment Financing Development District 1-2........................................................................ 78 STATISTICAL INFORMATION- General Fund Revenue by Source.............................................................................. 79 General Fund Expenditures by Function ................................................................... 80 Tax and Assessment Levies and Collections ............................................................. 81 c c c c c c c '" ~ ~ c c ~ c ~ ~ m c c c I m m I ; I I I a ~ la IE , ; = lc I 1~ 1c 1c c c 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 .................................................................. 82 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA STATUTES ..................................................................................................................... 84 FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES ............................... 85 c c c c ~ IiIi c c c c c ~ c ~ ~ C ~ C C C ; - i --- - -- I ; ; ~ = ! 11 ! a = a 1~ , c c , I~ 1 Ie c c ~ - Elected Officials J.E. McKelvey Bonnie Dehn Don Jacobson Julie Johnson JohnKunza Mike Knight Ken Orttel Appointed Officials Richard Fursman Jean McGann Shirley Clinton Victoria V olk CITY OF ANDOVER, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 1998 Position Mayor Councilmember Councilmember Councilmember Councilmember Councilmember Councilmember City Administrator Finance Director Treasurer Clerk Year Term of Office Expires 2001 1999 2003 2003 1999 2001 2001 Appointed Appointed Appointed Appointed I c c c c c c c c ~ ~ c c ~ c w ~ c c c ~.- ~--- 1--- ~D~I Kern, DeWenter, Viere, Ltd. _~ 'V" Certified Public Accountants I ; ~ m I m ! I I I I I I = I I 1& 1 1c I INDEPENDENT AUDITORS' REPORT March 8, 1999 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, 1998, 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 paragraphs, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material rnisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Because the City does not maintain adequate historical cost fixed asset accounting records, it was not practicable to extend our auditing procedures to enable us to express, and we do not express, an opinion on the balance sheet of the general fixed asset account group as of December 31, 1998. Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures about Year 2000 Issues, requires disclosure of certain matters regarding the year 2000 issue. The City of Andover, Minnesota has included such disclosures in Note 8. Because of the unprecedented nature ofthe year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Accordingly, insufficient audit evidence exists to support the City's disclosures with respect to the year 2000 issue made in Note 8. Further, we do not provide assurance that the City of Andover, Minnesota is or will be year 2000 ready, that the City of Andover's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the City does business will be year 2000 ready. 220 Park Avenue South, P.O. Box 1304 51. Cloud, MN 56302 320-251-7010' Fax: 320-251-1784 Twin Cities Metro: 612-338-6202 www.kdv.com 7600 Bass Lake Road, Suite 104 Minneapolis, MN 55428 2 612-537-3011 . Fax: 612-537-9682 www.kdv.com - c c c c c c c c c c c ~ c ~ ~ ~ c c c j-- - I ---- I m I I I I I I I I I I a c I a a B a City of Andover March 8, 1999 Page 2 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 and been able to examine evidence regarding year 2000 disclosures, 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, 1998, 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. In accordance with Government Auditing Standards, we have also issued our report dated March 8,1999 on our consideration of the City 's internal control over financial reporting and its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements and supplementary information listed in the table of contents 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. ~~/~/~' KERN, DEWENTER, VIERE, LTD. 3 CITY OF ANDOVER, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31,1998 ~ o Governmental Fund Types Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Projects Assets: Cash and Investments (Including Cash Equivalents) $ 2,293,745 $ 2,071,235 $ 7,354,976 $ 2,242,682 Cash with Trustee 0 0 0 0 Taxes Receivable - Delinquent 76,608 557 74,551 0 Special Assessments Receivable - Deferred 46 0 5,938,798 2,376,610 Delinquent 257 0 10,162 59,480 Accounts/Loans Receivable 41,542 105 0 126,213 Interest Receivable 96,286 60,621 274,607 174,984 Due from Other Governmental Units 153,664 3,084 135,945 294,490 Inventory 60,349 0 0 0 Prepaid Items 8,854 0 0 2,175 Property, Plant and Equipment - Net 0 0 0 0 Other Debits: Amount Available in Debt Service Fund 0 0 0 0 Amount to be Provided for Retirement of General Long-Term Debt 0 0 0 0 TOTAL ASSETS AND OTHER DEBITS $ 2.731,351 $ 2,135.602 $ 13,789.039 $ 5.276,634 LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts Payable $ 96,524 $ 5,296 $ 5,943 $ 131,667 Accrued Items 72,730 492 0 0 Contracts Payable 0 0 0 139,281 Due to Other Governmental Units 36,763 0 0 0 Deposits Payable 0 0 0 0 Due to Employees 0 0 0 0 Deferred Revenue 76,911 468,381 6,023,511 2,552,113 Special Assessments on City Property 0 0 0 0 Bonds and Certificates Payable 0 0 0 0 Total Liabilities 282,928 474,169 6,029,454 2,823,061 Equity and Other Credits: Investment in General Fixed Assets 0 0 0 0 Contributed Capital 0 0 0 0 Retained Earnings - Unreserved 0 0 0 0 Fund Balance (Deficit) - Reserved 69,203 0 7,770,700 0 Unreserved - Designated 2,196,484 0 0 3,378,408 Undesignated 182,736 1,661,433 (11,115) (924,835) Total Equity and Other Credits 2,448,423 1,661,433 7,759,585 2,453,573 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 2,731,351 $ 2,135,602 $ 13,789.039 $ 5,276,634 c c c c c c c c c ~ c ~ ~ w c The notes to the financial statements are an integral part of this statement. c c .--,--- - I I 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 1998 1997 $ 1,691,755 $ 138,542 $ 445,363 $ 0 $ 0 $16,238,298 $ 17,876,791 m 0 0 0 0 0 ' 0 307,954 0 0 0 0 0 151,716 50,238 I 0 0 0 0 0 8,315,454 5,573,911 2,443 0 0 0 0 72,342 32,174 462,716 404 0 0 0 630,980 577,608 81,757 6,952 0 0 0 695,207 684,450 3,094 0 0 0 0 590,277 424,207 I 14,165 17,316 0 0 0 91,830 64,943 38,122 0 0 0 0 49,151 50,805 22,887,863 0 0 11,805,159 0 34,693,022 31,618,671 I 0 0 0 0 7,759,585 7,759,585 5,904,866 0 0 0 0 19,888,284 19,888,284 25,571,653 I $ 25,181,915 $ 163.214 $ 445,363 $ 11.805,159 $ 27,647,869 $ 89.176.146 $ 88.738.271 I $ 19,008 $ 8,195 $ 4,355 $ 0 $ 0 $ 270,988 $ 666,037 23,714 833 0 0 179,274 277,043 244,394 0 0 0 0 0 139,281 458,146 484 0 0 0 0 37,247 32,699 I I 0 0 441,008 0 0 441,008 373,692 0 4,569 0 0 0 4,569 314,701 534 0 0 0 0 9,121,450 6,046,792 0 0 0 0 118,595 118,595 145,051 I 0 0 0 0 27,350,000 27,350,000 31,175,000 43,740 13,597 445,363 0 27,647,869 37,760,181 39,456,512 I 0 0 0 11,805,159 0 11,805,159 11 ,442,464 22,754,745 0 0 0 0 22,754,745 20,020,983 2,383,430 149,617 0 0 0 2,533,047 2,268,705 I 0 0 0 0 0 7,839,903 6,121,861 0 0 0 0 0 5,574,892 9,877,323 I 0 0 0 0 0 908,219 (449,577) 25,138,175 149,617 0 11,805,159 0 51,415,965 49,281,759 - I $ 25.181,915 $ 163,214 $ 445,363 $ 11.805.159 $ 27,647,869 $ 89.176.146 $ 88.738,271 I i I 1 ! ~ i I 4 1 ~ - CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUNDS AND EXPENDABLE TRUST FUNDS Year Ended December 31, 1998 Governmental Fund Types Debt Special General Revenue Service REVENUES: General Property Taxes and Tax Increments $ 2,804,065 $ 13,889 $ 1,170,086 Special Assessments 0 0 3,299,872 Licenses and Permits 694,809 0 0 Intergovernmental 880,697 12,546 171,530 Charges for Services 1,018,441 37,330 0 Fines 48,923 0 0 Miscellaneous 358,435 205,034 635,771 Total Revenues 5,805,370 268,799 5,277,259 EXPENDITURES: Current - General Government 1,551,410 0 0 Public Safety 1,528,282 0 0 Public Works 1,005,394 71,213 0 Sanitation 101,039 0 0 Parks and Recreation 461,131 0 0 Recycling 76,773 0 0 Econornic Development 0 102,062 0 Miscellaneous 75,950 0 0 Capital Outlay 0 175,710 0 Debt Service 0 0 6,122,591 Total Expenditures 4,799,979 348,985 6,122,591 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,005,391 (80,186) (845,332) OTHER FINANCING SOURCES (USES): Operating Transfers In 464,020 285,718 2,011,626 Operating Transfers Out 0 (50,000) 0 Bond Proceeds 0 0 746,701 Proceeds from Sale of Property 2,303 0 0 Total Other Financing Sources (Uses) 466,323 235,718 2,758,327 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 1,471,714 155,532 1,912,995 FUND BALANCE - January 1 1,846,747 447,263 5,904,866 RESIDUAL EQUITY TRANSFER (870,038) 1,058,638 (58,276) FUND BALANCE - December 31 $ 2,448,423 $ 1,661,433 $ 7,759,585 The notes to the financial statements are an integral part of this statement. c o c c c c c c c c c c c ~ ~ C C C C ,-- :-. I I I Fiduciary I Fund T;te Totals CapItal Expenda Ie (Memorandum Only) ;iueh Projects Trust 1998 1997 ~ I $ 0 $ 0 $ 3,988,040 $ 3,653,372 1,360,327 0 4,660,199 3,813,021 I 0 0 694,809 456,413 987,026 0 2,051,799 2,128,459 0 0 1,055,771 609,094 0 0 48,923 48,800 I 2,257,744 0 3,456,984 2,248,602 4,605,097 0 15,956,525 12,957,761 I 0 0 1,551,410 1,252,047 I 0 0 1,528,282 1,409,087 0 0 1,076,607 1,122,223 0 0 101,039 95,632 0 0 461,131 383,059 I 0 0 76,773 62,281 0 0 102,062 73,993 0 274 76,224 212,503 I 7,138,411 0 7,314,121 12,177,076 0 0 6,122,591 9,253,963 7,138,411 274 18,410,240 26,041,864 !I (2,533,314) (274) (2,453,715) (13,084,103) I 395,836 0 3,157,200 6,734,406 (2,707,962) (33,020) (2,790,982) (6,599,406) I 0 0 746,701 12,220,090 0 0 2,303 44,242 (2,312,126) (33,020) . 1,115,222 12,399,332 I I (4,845,440) (33,294) (1,338,493) (684,771) 7,317,437 33,294 15,549,607 16,234,378 I (18,424) 0 111,900 0 $ 2,453,573 $ 0 $14,323,014 $15,549,607 a 5 ! - CITY OF ANDOVER, MINNESOTA C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL- C GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES Year Ended December 31,1998 C ' , General Fund Special Revenue Over (Under) C I, Budget Actual Budget Budget Actual REVENUES: General Property Taxes and $ 2,904,311 $ 2,804,065 $ (100,246) $ 14,090 $ 13,889 C and Tax Increments Special Assessments 0 0 0 0 0 Licenses and Permits 627,615 694,809:/ 67,194 0 0 Intergovernmental 896,137 880,697 (15,440) 2,539 12,546/ C Charges for Services 654,800 1,018,441./ 1, 363,641 68,016 37,330 Fines 41,300 48 9230(f' 7,623 0 0 , .,'ft" 205,034 J Miscellaneous 196,746 358,4351. J 161,689 84,866 Total Revenues 5,320,909 5,805,370 484,461 169,511 268,799 C EXPENDITURES: Current - General Government 1,599,627 1,551,410 (48,217) 0 0 C Public Safety 1,598,069 1,528,282 (69,787) 0 0 Public Works 1,446,866 1,005,394 (441,472) 80,461 71,213 Sanitation 170,017 101,039 (68,978) 0 0 Parks and Recreation 474,092 461,131 (12,961) 0 0 C Recycling 77,153 76,773 {380) 0 0 Economic Development 0 0 0 111,560 102,062 Miscellaneous 490,045 75,950 (414,095) 0 0 Capital Outlay 0 0 0 101,131 175,710 ~ Debt Service 0 0 0 0 0 Total Expenditures 5,855,869 4,799,979 (1,055,890) 293,152 348,985 EXCESS OF REVENUES OVER (UNDER) ~ EXPENDITURES (534,960) 1,005,391 1,540,351 (123,641) (80,186) OTHER FINANCING SOURCES (USES): Operating Transfers In 546,660 464,020 (82,640) 275,718 285,718 C Operating Transfers Out (14,000) 0 14,000 0 (50,000) Bond Proceeds 0 0 0 0 0 Proceeds from Sale of Property 2,300 2,303 3 28,560 0 Total Other Financing Sources (Uses) 534,960 466,323 (68,637) 304,278 235,718 C EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES ~ AND OTHER USES $ 0 1,471,714 $ 1,471,714 $ 180,637 155,532 FUND BALANCE - January 1 1,846,747 447,263 RESIDUAL EQUITY TRANSFER (870,038) 1,058,638 ~ FUND BALANCE - December 31 $ 2,448,423 $ 1,661,433 C C The notes to the financial statements are an integral part of this statement. C C ---'--. - ----- I I I Totals Funds Debt Service Funds (Memorandum Only) I Over Over Over (Under) (Under) (Under) Budget Budget . Actual Budget Budget Actual Budget I $ (201) $ 1,082,484 $ 1,170,086 $ 87,602 $ 4,000,885 $ 3,988,040 $ (12,845) , 0 1,122,155 3,299,872 2,177,717 1,122,155 3,299,872 2,177,717 0 0 0 0 627,615 694,809 67,194 I 10,007 171,626 -471,530/ (96) 1,070,302 1,064,773 (5,529) (30,686) 0 0 0 722,816 1,055,771 332,955 0 0 0 0 41,300 48,923 7,623 120,168 295,880 63$,77N' 339,891 577,492 1,199,240 621,748 I 99,288 2,672,145 5,277,259 2,605,114 8,162,565 11,351,428 3,188,863 I 0 0 0 0 1,599,627 1,551,410 (48,217) 0 0 0 0 1,598,069 1,528,282 (69,787) (9,248) 0 0 0 1,527,327 1,076,607 (450,720) 0 0 0 0 170,017 101,039 (68,978) I 0 0 0 0 474,092 461,131 (12,961) 0 0 0 0 77,153 76,773 (380) (9,498) 0 0 0 111,560 102,062 (9,498) 0 0 0 0 490,045 75,950 (414,095) I 74,579 0 0 0 101,131 175,710 74,579 0 5,353,558 6,122,591 769,033 5,353,558 6,122,591 769,033 55,833 5,353,558 6,122,591 769,033 11 ,502,579 5,148,964 (231,024) I 43,455 (2,681,413) (845,332) 1,836,081 (3,340,014) 79,873 3,419,887 I 10,000 30,000 2,011,626 1,981,626 852,378 2,761,364 1,908,986 (50,000) 0 0 0 (14,000) (50,000) (36,000) 0 0 746,701 746,701 0 746,701 746,701 (28,560) 0 0 0 30,860 2,303 (28,557) I (68,560) 30,000 2,758,327 2,728,327 869,238 3,460,368 2,591,130 I $ (25,1 05) $ (2,651,413) 1,912,995 $ 4,564,408 $(2,470,776) 3,540,241 $ 6,011,017 5,904,866 8,198,876 , j I (58,276) 130,324 $ 7,759,585 $ 11,869,441 j I J a J 1 ~ l a I ~ 6 1 I ] , CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUNDS Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Enterprise OPERATING REVENUES: User Charges Meters Permit Fees Penalties Other Total Operating Revenues $ 1,738,249 65,122 18,975 29,694 4,671 1,856,711 OPERATING EXPENSES: Personal Services Supplies Other Services and Charges Disposal Charges Depreciation Total Operating Expenses 427,512 65,735 123,991 542,883 617,789 1,777,910 78,801 . OPERATING INCOME (LOSS) NON-OPERATING REVENUES: Investment Income 139,297 INCOME (LOSS) BEFORE OPERATING TRANSFERS 218,098 30,500 (396,718) (366,218) (148,120) Operating Transfer In Operating Transfer Out Total Operating Transfers NET INCOME (LOSS) Add: Depreciation Charged Against Contributed Capital 475,181 2,163,269 (106,900) $ 2,383.430 RETAINED EARNINGS - January 1 RESIDUAL EQUITY TRANSFER RETAINED EARNINGS - December 31 Internal Service $ 359,302 o o o 1,895 361,197 126,921 128,674 67,815 o o 323,410 37,787 11,394 49,181 o o o 49,181 o 105,436 (5,000) $ 149,617 The notes to the financial statements are an integral part of this statement. ~----r- $ 1,865,190 37,180 12,082 24,314 454 1,939,220 c c c ~ .. C C C C Totals (Memorandum Only) 1998 1997 $ 2,097,551 65,122 18,975 29,694 6,566 2,217,908 554,433 194,409 191,806 542,883 617,789 2,101,320 116,588 150,691 267,279 30,500 (396,718) (366,218) (98,939) 475,181 2,268,705 (111,900) $ 2,533,047 448,357 225,089 258,948 518,571 603,269 2,054,234 (115,014) c 92,688 ~ ~ ~ ~ ~ (22,326) 6,000 (141,000) (135,000) (157,326) 475,180 1,950,851 o $ 2,268,705 ~ 7 o c c c n ,__ _ I I I I I I I I I I I I I I JI 1 JI 1 11 JI ] ~ j ; ot CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Totals Internal (Memorandum Only) Enterprise Service 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income (Loss) $ 78,801 $ 37,787 $ 116,588 $ (115,014) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation 617,789 0 617,789 603,269 Change in Current Assets and Liabilities: Decrease in Special Assessments 10,371 0 10,371 901 (Increase) in Accounts Receivable (64,618) (231) (64,849) 203,718 (Increase) Decrease in Due From Other Government Units 10,268 0 10,268 2,415 (Increase) Decrease in Inventory (1,475) (1,620) (3,095) 3,004 (Increase) Decrease in Prepaid Items 7,837 465 8,302 2,885 Increase (Decrease) in Accounts Payable (4,452) 4,288 (164) (8,302) Increase in Accrued Items (6,868) (3,022) (9,890) 12,656 (Decrease) in Due to Other Governmental Units (ISO) 0 (150) (2,004) (Decrease) in Deferred Revenue (1,498) 0 (1,498) (900) Total Adjustments 567,204 (120) 567,084 817,642 Net Cash Provided by Operating Activities 646,005 37,667 683,672 702,628 CASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES: Transfers From Other Funds 30,500 0 30,500 6,000 Transfers To Other Funds (503,618) (5,000) (508,618) (141,000) Net Cash Used by Noncapital Financing Activities (473,118) (5,000) (478,118) (135,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Fixed Assets (120,501) 0 (120,501) (101,528) CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income 111,316 7,633 118,949 66,890 NET INCREASE IN CASH AND CASH EQUIVALENTS 163,702 40,300 204,002 532,990 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,528,053 98,242 1,626,295 1,093,305 CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,691,755 $ 138,542 $ 1,830,297 $ 1,626,295 The notes to the financial statements are an integral part ofthisstatemenl. 8 9 c c c c c ~ ~ ~ ~ ~ ~ c ~ w ~ c c c c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 (FASB) 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 dected to apply only GASB pronouncements issued after November 30, 1989. B. Financial Reporting Entity In accordance with GASB Statement No. 14, The Financial Reporting Entity, the [mancial statements present the City and its component units. The City includes all funds, account groups, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their 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 Organization's governing body and it is able to impose its will on the Organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the Organization, or there is a potential for the Organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, it has been determined the City has one blended component unit. Blended Component Unit - The Andover Economic Development Authority (EDA) is a legal entity separate from the City. Although legally separate, the EDA is reported as if it were part of the primary government because its governing body is substantively the same as the governing body of the primary government. I I I I 'I I I I I I I I I I I I 11 ~ 11 , ] ~ 1 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1998 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into eight generic fund types and three broad fund categories, described below. Governmental Funds The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (otherthan 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 Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that the periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City maintains Water and Sewer Enterprise Funds. 10 - 11 c c c c c ~ c c ~ ~ ~ ~ c ~ ~ w c c c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1998 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Accounting (Continued) Internal Service Funds - Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City. The City's Central Equipment Maintenance Fund is used to account for the City's Equipment Operations to all City departments on a cost reimbursement basis. Fiduciary Funds Expendable Trust FWlds are used to account for assets held by the government in a trustee capacity. Both principal and eamings may be spent for the trust's intended purpose. Agencv Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. The City's Agency Fund is custodial in nature and does not involve measurement of results of operations. D. Measurement Focus. Fixed Assets and Long-Term Liabilities 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 cur:rent liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of available spendable resources. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets--which are certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems--are not capitalized by the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at their historical cost or estimated historical cost if actual cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. --~ ---- -- r---'-~- I I I I I I I il I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (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 lirnited 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 ofthe measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting, in which revenues are recognized when they become measurable and available as net current assets. 12 - 13 ~ c c ~ Ii.i C C C C C C C C C ~ ~ ~ c c j CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Basis of Accounting (Continued) The City considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Major revenues that are susceptible to accrual include property taxes, intergovernmental revenues, charges for services, and interest on investments. Major revenues that are not susceptible to accruaJl include licenses and permits, fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liabilities are incurred. Exceptions to this rule include sick pay and principal and interest on general long-term debt, which are recognized when due. All proprietary funds are accounted for using the accrual basis of accounting; revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility serviGe receivables are recorded at year end. The City reports deferred revenue on the combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, or when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent years, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed fi:om the combined balance sheet and the revenue is recognized. F. Budgetarv 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. 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. ---r-- - - 1--:- I I I I I I I I I I jl I I I I I - 11 1 JI l 'i 41 j 1 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Budgetarv 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 of project 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. H. Cash and Investments (Including Cash Equivalents) (See Note 3) Cash balances from all funds are combined and invested to the extent available in authorized investments. Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. 14 c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December31, 1998 (Continued) c NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c c c H. Cash and Investments (Including Cash Eauivalents) (See Note 3) (Continued) The City has implemented Governmental Accounting Standards Board (GASB) Statement No. 31 whereby investments are reported at fair value as of December 31,1998. Money market investments such as commercial paper that have a remaining maturity at time of purchase of one year or less are recorded at amortized cost. ~ For purposes of the Statement of Cash Flows of proprietary fund types, cash equivalents are defined as short-tenn, highly liquid investments that are both: ~ ~ a. readily convertible to known amounts of cash, or b. so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. ~ ~ ~. ~ C C ~ The City's policy considers cash equivalents to be those that meet the above criteria and have original maturities of three months or less. I. Taxes Receivable Delinquent taxes receivable represent the past six years of uncollected tax levies. J. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting 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). m K. Inventories 15 ~ o c c c The inventories of the General Fund and the Proprietary Funds are stated at cost on the first- in, first-out basis. The General Fund accounts for inventory using the consumption method. General Fund inventory consists of signs and miscellaneous other items. Proprietary Funds inventory consists of water meters, miscellaneous parts and other items. L. Deferred Revenue Deferred revenue represents delinquent taxes, deferred and delinquent assessments, loans receivable and other uneamed grants in all funds. This revenue is deferred until it is measurable and available as net current assets. -,--- 1---::- I I I I I I I I I I I I I I I .1 ~I , " 1 I ]. 1 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 ofthe 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 earnings are recorded when earned because they are measurable and available. 2. Property Tax Collection Calendar The City levies its property tax for the subsequent year during the 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. 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 I. 16 c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) c c c c ~ ~ ~ m ~ c c ~ NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Revenues. Expenditures and Expenses (Continued) 2. Pro?ertv Tax Collection Calendar (Continued) 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, except for certain prepayments paid directly to the City. The County Auditor turns over a list oftaxes to be collected on each parcel of property to the County Treasurer in January of each year. The County Treasurer collects all taxes and is required to mail copies of all personal property tax statements by April 15, and copies of all real estate tax statements by April 15, of each year. Property owners are required to pay one-half of their real estate taxes due by May 15 and the balance by October 15. If taxes due May I5 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. If the 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-homestead,~d property until January 1. Ifthe 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 af1:er the tax settlement date, the County Treasurer is required to pay 70% of the estimated collections oftaxes and special assessments to the City Treasurer. The County Treasurer must pay the balance to the City Treasurer within 60 days after settlement, provided that after 45 days interest accrues at the rate of 8% per annum. m 17 c c c c c 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. -r------ 1--=:- :cc- --=-::--::=. I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1998 (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Revenues. Expenditures and Expenses (Continued) 4. Expenses Proprietary fund types recognize expenses when they are incurred. O. 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 Purpose 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 ofthis data. R. Reclassifications Certain 1997 amounts have been reclassified to conform to the presentation used in the 1998 financial statements. Such reclassifications had no effect on net operating results or total fund equity as previously reported. 18 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) c c c c c NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY A. Fund Deficits The following funds had deficit fund balances at December 31, 1998: Debt Service Funds- G.O. Improvement Bonds of 1989 Capital Projects Funds - Storm Sewer Project Unfinanced Projects State Aid Revolving Projects " . $ 11,115 101,680 435,661 387,494 c ~ These deficits will be: eliminated by transfers from other funds, collections of property tax levies or proceeds from bond issues. ~ il.J B. Expenditures in Excess of Appropriations 19 c c c c ~ ~ C C C C Expenditures exceeded appropriations in the following funds for the year ended December 31, 1998: Special Revenue Fund: Septic Disposal Fund Capital Equipment Reserve Oak Wilt Suppression Appropriations Expenditures $ 0 97,631 o $ 700 174,712 14,511 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 VariOIlS investments authorized by Minnesota Statutes. Each fund's portion ofthis pool (or pools) is displayed on the financial statements as "cash and investments (including cash equivalents)." For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized below: a. Deposits - Minnesota Statutes require that all deposits with financial institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC Insurance. ----I .,-_. I I I I I I I I I I il I I " 41 j j Ja ~ JI ,; 1 I I = CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 1. Cash and Investments (Including Cash Equivalents) (Continued) a. Deposits - (Continued) Category 1 includes deposits covered by Federal Depository Insurance (FDIC) and those deposits collateralized with securities held by the City or by its agent in the City's name. Category 1 2 3 Bank Balance Carrying Amount Bank Accounts $ 153,400 $ 0 $ 0 $ 153,400 $ 378,896 b. Investments - Minnesota Statutes authorize the City to invest in obligations ofthe 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. 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. 20 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A, Assets (Continued) 1. Cash and Investments (Including Cash Eauivalents) (Continued) b. Investments - (Continued) Category 1 2 3 Total Investments $ 1,533,140 795,785 8,310,558 4,174,178 $ 14,813,661 $ 0 $ 0 Minnesota Mlmicipal Investment Pool Open End Mutual Fund Total Deposit:> (Note 3 A,1.a.) Petty Cash Total Cash and Investments (Including Cash Equivalents) Classified on the Balance Sheet as follows: Cash and Investments (Including Cash Equivalents) Accrued Interest Total Fair Value and Carrying Amount $ 1,533,140 795,785 8,310,558 4,174,178 14,813,661 1,411,072 329,226 378,896 650 $ 16,933,505 $ 16,238,298 695,207 $ 16,933,505 'During the year ended December 31, 1998, the City had investment revenue of $ 1,090,124. ~... 0 C C C C C ~ ~ CJ C ~ ~ m WI ~ ~ ~ . C C C 21 0 ,- l---'c-. ----::-- = I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 2. Deferred Compensation Plan In accordance with the requirements of Governmental Accounting Standards Board (GASB) Statement No. 32, the deferred compensation plan has been eliminated from the City's financial report. The assets and income of the plan are held in trust for the exclusive benefit of participants and their beneficiaries and are managed by trustees other than the City. The City has determined no further fiduciary relationship exists with the IRC Section 457 plan. 3. Flexible Benefit Plan The City offers a flexible benefit plan. The plan is a "cafeteria plan" under 9 125 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. 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 dependent care expenses incurred by the participants. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 22 - 23 c c c c c c c c c c c c c c ~ ~ c ~ ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 4. Fixed Assets A summary of changes in the General Fixed Assets Account Group follows: Balance Balance 1-1-98 Additions Disposals 12-31-98 Land $ 3,970,750 $ 0 $ 0 $ 3,970,750 Buildings and Improvements 2,926,451 189,294 (445) 3,115,300 Furniture and Equipment 745,265 159,245 (25,309) 879,201 Machinery and Equipment 3,799,998 67,910 (28,000) 3,839,908 Total General Fixed Assets $ 11,442,464 $ 416,449 $ (53,754) $ 11,805,159 A summary of proprietary fund type fixed assets at December 31, 1998 is as follows: Water Sewer Total Furniture and Equipment $ 681,699 $ 168,111 $ 849,810 Machinery 952,071 19,465 971,536 Collection and Distribution System 11,382,482 15,585,500 26,967,982 Accumulated Depreeiation (2,510,603) (3,390,862) (5,901,465) Net Fixed Assets $ 10,505,649 $ 12,382,214 $ 22,887,863 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 of5.50% and calls for 180 equal monthly payments to be made to the City through August, 2003. At December 31, 1998, the remaining principal due of$ 116,023 is offset by deferred revenue as it is not available to finance current activities. - 1 I-----O~c I I I I I I II I I I I I I B I I I a ; CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities 1. Defined Benefit Pension Plans - Statewide a. Plan Description All full-time and certain part-time employees of the City of Andover are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire- fighters and peace officers who qualify for membership by statute are covered by the PEPFF. 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. 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 retired 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 retired before July 1, 1997, the annuity accrual rate is 1 percent of average salary for each ofthe 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 of the first 10 years and 1.7 percent for each remaining year). Under Method 2, the aunuity accrual rate is 2.5 percent of average salary for Basic Plan members and 1.5 percent for Coordinated Plan members who retired before July 1, 1997. Annuity accrual rates increase 0.2 percent for members who retire on or after July 1, 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 retirement annuity is also available to eligible members seeking early retirement. 24 - 25 C r\. ' .. c c c ~ ~ ~ c c ~ c w w ~ ... c c c o CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1998 (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) 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 wmuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 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 (651) 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 8.75 percent and 4.75 percent, respectively, oftheir annual covered salary. PEPFF members are required to contribute 7.60 percent of their annual covered salary. The City of Andover is required to contribute the following percentages of annual covered payroll: 11.43 percent for Basic Plan PERF members, 5.18 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 30,1998, 1997, and 1996 were $ 89,513, $ 67,050, and $ 58,310, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ended December 31, 1998, 1997, and 1996 were $ 5,950, $ 5,453, and $ 5,052, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. -----i- 1--:- -. -c-=-=-. I I I I I a I I I I I I I I I I I C C CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (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 ofthe 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 ofthe Association for the year ended December 31,1998 was $ 101,323. The City's total payroll was $ 1,788,301. 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 Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A firefighter who completes at least 20 years as an active member 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 ofthe 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. 26 - CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) c c c c c c c c ~ ~ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association (Continued) b. Pension Bene:fits (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 ofthe member's account at the date of payment. ~ C The City of Andover has the power to levy property taxes at the direction and for the benefit of the Association, and passes through state aids allocated to the plan, in accordance with enabling state statutes. ~ ill 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. ~ .. c c 27 c .::--T----- ; I --- ----C-C - - ; I I I I I I I I I I I I I I I I I ; I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (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) c. Contributions Required and Contributions Made (Continued) In 1998, the City contributed $ 91,580 to the Association, consisting of$ 57,830 state aid and $ 33,750 fulfilling the City's $ 750 per member contribution obligation for the year ended December 31, 1998. The City's contribution represents 37.7% of covered payroll. 3. Deferred Revenues Deferred revenues at December 31,1998 are summarized below: General Taxes Receivable - Delinquent $ 76,608 Special Assessments Receivable - Deferred 46 Delinquent 257 Loans Receivable 0 Deposits and Other 0 Total $ 76,911 4. Long-Term Debt Special Revenue $ 557 o o o 186,135 $ 186,692 Debt Service $ 74,551 5,938,798 10,162 o o $ 6,023,511 Capital Projects $ 0 2,376,610 59,480 133,008 o $ 2,569,098 Enterprise $ $ Total o $ 151,716 o o o 534 8,315,454 69,899 133,008 186,669 534 $ 8,856,746 The following is a summary oflong-term debt transactions ofthe City for the year ended December 31,1998: General Obligation Bonds General Obligation Revenue Bonds Special Assessment Bonds Tax Increment Bonds Certificates of Indebtedness Assessments on City Property Compensated Absences Payable - Balance January 1, 1998 $ 1,000,000 2,350,000 18,510,000 8,830,000 485,000 145,051 156,468 $ 31,476,519 Additions $ 760,000 o o o o o 22,806 $ 782,806 Deletions $ 1,000,000 35,000 3,085,000 335,000 130,000 26,456 o $ 4,611,456 $ $ Balance December 31,1998 760,000 2,315,000 15,425,000 8,495,000 355,000 118,595 179,274 27,647,869 28 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (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, 1998 are comprised of the following issues: Maturity Interest Rate Issue Date Date Original Issue Retired J General Obligation Bonds: G.O. Refunding Bonds of 1998 v $ 3.60-3.75% 12-01-98 $ 07-01-01 760,000 General Obligation Bonds: /' .J Public Project Revenue Bonds of 1997 4.50-5.90% 09-01-97 12-01-16 2,350,000 35,000 Special Assessment Bonds: v G.O. Improvement Bonds of ,/ Series 1977A 5.00% 02-01-77 01-01-06 1,215,000 750,000 ./ G.O. Improvement Bonds of ,,/ Series 1993A 4.00-4.75% 08-01-93 08-01-03 3,650,000 1,825,000 ,/ G.O. Improvement Bonds of ./ Series 1994C 5.05-5.75% 10-01-94 02-01-06 1,140,000 225,000 . p.O. Improvement Bonds of ~ 1995A 4.85-5.30% 07-01-95 02-01-06 2,605,000 420,000 ../ Refunding Bonds of Series 'V/ j 1995B 4.65-4.85% 07-01-95 08-01-00 825,000 550,000 G.O. Crossover Refunding Bond J' of 1996 4.15-4.50% 06-01-96 08-01-01 1,220,000 310,000 JG.O. Improvement Bonds of 1996 ~15-5.00% 06-01-96 08-01-06 600,000 105,000 /G.O. Improvement Bonds of Series 1997 A v4.20-4.80% 05-01-97 12-01-02 3,120,000 650,000 /0.0. Refunding Bonds of 1997 -/4.20-4.50% 06-01-97 08-01-00 630,000 210,000 /G.O. Improvement Bonds of ~ 3.90-4.70% Series 1997B 07-01-97 12-01-05 6,315,000 850,000 Total Special Assessment Bonds 21,320,000 5,895,000 --r----- c r- .. ,. .. c c C Outstanding C o $ 760,000 C 2,315,000 C C 465,000 1,825,000 C 915,000 2,185,000 C 275,000 ~ ~ 910,000 495,000 ~ 2,470,000 420,000 ~ 5,465,000 15,425,000 C c ~ .. 29 c I ---:-- - -~ ----=1 I I I I I I I I I I I = I a = I a c c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) Maturity Interest Rate Issue Date Date Original Issue Tax Increment Bonds: ;G.O. Tax Increment Bonds ott Series 1993B '\ /4.00-5.00% 08-01-93 08-01-03 $ 520,000 $ (' G.O. Tax Increment Refunding'! . Bonds of Series 1994B !! "/6.97-7.87% 05-01-94 05-01-04 885,000 / G.O. Tax Increment Bonds of I Series 1995D i v' 4.50-5.60% 10-01-95 02-01-13 6,055,000 A.o. Tax Increment Bonds of L 1996 /4.75-5.40% 06-01-96 08-01-12 2,055,000 Total Tax Increment Bonds 9,515,000 Certificates of Indebtedness: 1994A Certificate of Indebtedness 1995C Certificate ofIndebtedness Total Certificates of Indebtedness ~ 4.05% 03-01-94 ../4.65-4.85% 06-01-95 03-01-99 02-01-00 150,000 515,000 665,000 6.25-10.70% N/A Assessments on City Property 2001 338,174 N/A N/A N/A Compensated Absences Payable 179,274 Retired Outstanding 250,000 $ 270,000 360,000 525,000 305,000 5,750,000 105,000 1,950,000 1,020,000 8,495,000 120,000 190,000 30,000 325,000 310,000 355,000 219,579 118,595 o 179,274 TOTAL $ 35,127,448 $ 7,479,579 $ 27,647,869 The annual requirements to amortize all bonded debt outstanding as of December 31,1998 including interest payments of$ 8,056,613 are: General Obligation Revenue Bonds Special Assessment Bonds General Obligation Bonds Tax Increment Bonds Year Ending December 31 $ 192,687 $ 5,076,550 179,244 4,900,487 0 4,254,063 0 3,612,487 0 2,913,222 0 14,649,804 371,931 $ 35,406,613 1999 $ 271,325 $ 170,025 $ 3,645,348 $ 797,165 2000 283,805 173,165 3,446,393 817,880 2001 249,000 181,005 2,997,563 826,495 2002 0 183,310 2,590,719 838,458 2003 0 190,310 1,898,865 824,047 Thereafter 0 3,031,935 3,366,483 8,251,386 $ 804,130 $ 3,929,750 17,945,371 12,355,431 - Certificates of Indebtedness Total $ 30 CITY OF ANDOVER C rI. ' ~ c NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) ~ .. B. Liabilities (Continued) 5. Refunding Bonds On December 3,1998, the City issued $ 760,000 General Obligation Refunding Bonds with an average interest rate of3.71 % to advance refund $ 750,000 of outstanding 1991A General Obligation Bonds with an average interest rate of 6.44%. The net proceeds of $ 749,591 plus an additional $ 564 of City funds were used to call and retire all outstanding 1991A Bonds on December 31,1998 and to pay bond issuance expenses. This current refunding will result in a total reduction in debt service payments of $ 18,630 over the next three years and provides for an economic gain of$ 17,220. 6. Conduit Debt Obligations c c c ~ ~ Date of Original Project Issue Issue Retired Downtown Center 07-15-97 $ 5,645,000 $ 355,000 Downtown Center 07-15-97 1,250,000 75,000 Presbyterian Homes of Andover, Inc. 12-01-98 13,980,000 0 Presbyterian Homes of Andover, Inc. 12-01-98 720,000 0 Total $ 21,595,000 $ 430,000 Outstanding December 31,1998 ~ ~ ~ ~ . Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private- sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31, 1998, the following revenue bonds were outstanding: $ 5,290,000 1,175,000 13,980,000 720,000 $ 21,165,000 ~ ~ ~ ~ c ~ L.i ~ i.l ~ ~ 31 pili l.J ----~- I I I I I I ;1 I I I I I I I I I I I I CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund EQuitv Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective funds: 1. Investment in General Fixed Assets Represents the City's equity in general fixed assets. 2. Contributed Capital 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, 1998 is as follows: Enterprise Funds Water Sewer Fund Fund Total Contributed Capital - January 1, 1998 $ 9,124,401 $ 10,896,581 $ 20,020,982 Add: 1998 Contributions 1,520,738 1,688,206 3,208,944 Less: Depreciation on Contributed Assets (197,235) (277,946) (475,181) Contributed Capital - December31,1998 $ 10,447,904 $ 12,306,841 $ 22,754,745 32 - t CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) III .j. Fund balances are classified as follows to reflect limitations and restrictions of the respective funds. c c c c NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Eauitv (Continued) 3. Fund Balance Special Debt Capital Expendable Ge:neral Revenue Service Projects Trost Total Reserved for: Inventory $ 60,349 $ 0 $ 0 $ 0 $ 0 $ 60,349 Prepaid Items 8,854 0 0 0 0 8,854 Debt Service 0 0 7,770,700 0 0 7,770,700 Total Reserved Fund Balance 69,203 0 7,770,700 0 0 7,839,903 Unreserved: Designated for Working Capital 2,196,484 0 0 0 0 2,196,484 Designated for Future Expenditures 0 0 0 0 0 0 Designated for Projects 0 0 0 3,261,168 0 3,261,168 Designated for Equipment 0 0 0 117,240 0 117,240 Designated for 0 0 0 0 0 0 Administration Total Unreserved- Designated Fund Balance 2,196,484 0 0 3,378,408 0 5,574,892 Undesignated 182,736 1,661,433 (11,115) (924,835) 0 908,219 Total Fund Balance $ 2,448,423 $ 1,661,433 $ 7,759,585 $ 2,453,573 $ 0 $ 14,323,014 4. Retained Earning2 ~ .. c c r- ... c c c c c c c c c Retained earnings balances are unreserved at December 31, 1998. 33 -r-- -- I - -- -. -~. I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 4 - SEGMENT INFORMATION The City maintains Water and Sewer Enterprise Funds. Segment information for the year ended December 31, 1998 is as follows: Water Sewer Operating Revenues Operating Expenses Depreciation Expense Operating Income (Loss) Operating Transfers, Net Net Loss Contributed Capital Net Working Capital Fixed Asset Purchases Total Assets Total Equity $ 928,581 742,153 312,101 186,428 (321,000) (52,353) 10,447,904 1,272,626 80,738 11,796,047 11,766,085 $ 928,130 1,035,757 305,688 (107,627) (45,218) (95,767) 12,306,841 999,698 39,763 13,385,868 13,372,090 NOTE 5 - TAX INCREMENT DISTRICTS Total $ 1,856,711 1,777,910 617,789 78,801 (366,218) (148,120) 22,754,745 2,272,324 120,501 25,181,915 25,138,175 The City of Andover is the administering authority for the following tax increment finance districts: 1. Name of District: Andover Redevelopment District 1-1 Type of District: 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 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 - $ 28,525 296,874 $ 268,349 $ 61,018 616,607 $ 555,589 34 Amounts Redeerned $ 9,515,000 (1,020,000) $ 8,495,000 c c c c ,. .. C ~ C ~ C ~ ~ CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,1998 (Continued) NOTE 5 - TAX INCREMENT DISTRICTS (Continued) Total District 1 Bonds Issued Bonds Outstanding at December 31, 1998 NOTE 6 - RISK MANAGEMENT The City is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMC Trust), a public entity risk pool for its general property and casualty, workers' compensation, and other miscellaneous insurance coverages. The LMC Trust operates as a common risk management and insurance program for approximately 780 cities. The City pays an annual premium to the LMC Trust for insurance coverage. The LMC Trust agreement provides that the Trust will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits. The major reinsurance points are generally $ 200,000 per occurrence for property loss or damage and $ 450,000 per occurrence for workers' compensation. The City also carries commercial insurance for certain other risks ofloss, including employee health insurance. Settled claims resulting from these risk have not exceeded commercial insurance coverage in any of the past fiscal years. NOTE 7 - COMMITMENTS The City has several commitments outstanding at year end for various construction projects. They are summarized below: c Expended Required Project Through Remaining Further Project Authorization 12-31-98 Commitment Financing Commercial Boulevard Ext. 1 $ 167,452 $ 145,904 $ 21,548 None Commercial Boulevard Ext. 2 177,195 176,008 1,187 None Public Works Expansion 316,717 220,869 95,848 None Andover Commercial Park 750,271 342,691 407,580 None Well #6 Well House Design 397,600 373,616 23,984 None Jay Street NW 357,640 306,988 50,652 None Shadow Brook 4th Addition 293,855 223,892 69,963 None c 35 ~ W C C C - -- ~--==- --1- 1- I I I I I I I I I I ;1 I I I I I ,I I I CITY OF ANDOVER NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1998 (Continued) NOTE 7 - COMMITMENTS (Continued) The Federal and State program activities are subject to financial and compliance regulation. To the extent that any expenditures are disallowed, a liability to the respective Federal or State Agency could result. The City expects such amounts, if any, to be immaterial. NOTE 8 - YEAR 2000 ISSUE The City of Andover has completed an inventory of computer systems and other electronic equipment that may be affected by the year 2000 issue and that are necessary to conducting City operations. Based on this inventory, the City is in the remediation stage for the financial reporting systems and other necessary systems; the City has contracted with its computer operations providers for necessary upgrades. Testing and validation ofthe systems will need to be completed prior to January 1, 2000. Guidelines established by the League of Minnesota Cities are implemented to address potential problems. A year 2000 taskforce has been formed to address concerns. Because ofthe unprecedented nature ofthe year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the City is or will be year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City does business with will be year 2000 ready. 36 ,. ~ c COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS c c c ~. ; ~ ~ Ii.I C C C C C C C C C C C C -- - r--- - -.,---- ---, I I I I I I I I I I I I 'I I I I I I I CITY OF ANDOVER, MINNESOTA THE GENERAL FUND The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works and parks and recreation. Revenue is recorded by source; i.e., taxes, licenses and permits, fines and forfeits, service charges, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. -'" CITY OF ANDOVER, MINNESOTA COMPARATIVE BALANCE SHEET - GENERAL FUND ASSETS December 31 1998 1997 60,349 36,557 8,854 4,381 2,196,484 855,453 0 163,234 182,736 787,122 2,448,423 1,846,747 $ 2,731,351 $ 2,089,716 Cash and Investments Taxes Receivable- Delinquent Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due From Other Governmental Units Inventory Prepaid Items $ 2,293,745 76,608 46 257 41,542 96,286 153,664 60,349 8,854 $ 2,731 ,351 TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Accrued Items Due to Other Governmental Units Deferred Revenue Total Liabilities $ 96,524 72,730 36,763 76,911 282,928 Fund Balance: Reserved for - Inventory Prepaid Items Unreserved - Designated for Working Capital Designated for Future Expenditures Undesignated Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE --~- $ 1,738,145 42,303 48 259 35,107 37,408 195,508 36,557 4,381 $ 2,089,716 $ 113,336 54,958 32,065 42,610 242,969 c c c c c c c c c ~ ~ C c ~ ~ ~ lIJ 37 c c c I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 'I GENERAL FUND Year Ended December 31, 1998 I 1998 1997 Over (Under) I Budget Actual Budget Actual REVENUES: General Property Taxes $ 2,904,311 $ 2,804,065 $ (100,246) $ 2,383,965 Licenses and Permits 627,615 694,809 67,194 456,413 I Intergovemmental 896,137 880,697 (15,440) 988,814 Charges for Services 654,800 1,018,441 363,641 578,221 Fines 41,300 48,923 7,623 48,800 I Miscellaneous 196,746 358,435 161,689 258,087 Total Revenues 5,320,909 5,805,370 484,461 4,714,300 EXPENDITURES: I Current - General Government 1,599,627 1,551,410 (48,217) 1,252,047 Public Safety 1,598,069 1,528,282 (69,787) 1,409,087 I Public Works 1,446,866 1,005,394 (441,472) 1,044,183 Sanitation 170,017 101,039 (68,978) 95,632 Parks and Recreation 474,092 461,131 (12,961) 383,059 Recycling 77,153 76,773 (380) 62,281 I Miscellaneous 490,045 75,950 (414,095) 212,503 Total Expenditures 5,855,869 4,799,979 (1,055,890) 4,458,792 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (534,960) 1,005,391 1,540,351 255,508 OTHER FINANCING SOURCES (USES): I Operating Transfers In 546,660 464,020 (82,640) 317,200 Operating Transfers Out (14,000) 0 14,000 (6,000) Proceeds from Sale of Property 2,300 2,303 3 407 I Total Other Financing Sources (Uses) 534,960 466,323 (68,637) 311,607 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER I EXPENDITURES AND OTHER USES $ 0 1,471,714 $ 1,471,714 567,115 FUND BALANCE - January 1 1,846,747 1,279,632 I RESIDUAL EQUITY TRANSFER (870,038) 0 FUND BALANCE - December 31 $ 2,448,423 $ 1,846,747 I I I 38 I - CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1998 (Continued) 1998 1997 Over (Under) Budget Actual Budget Actual REVENUES: General Property Taxes $ 2,904,311 $ 2,804,065 $ (100,246) $ 2,383,965 Licenses and Permits 627,615 694,809 67,194 456,413 Intergovernmental Revenue - CDBG Grants 35,000 29,974 (5,026) 68,667 Local Government Aid 122,651 122,651 0 120,769 HACA and Local Perform:mce Aid 369,016 368,956 (60) 355,088 COPS Grant 30,000 23,750 (6,250) 25,000 Street Maintenance 140,000 140,000 0 140,000 Fire Department Aid 59,880 57,830 (2,050) 54,275 Disaster Relief Aid 0 0 0 98,497 Other Grants 139,590 137,536 (2,054) 126,518 Total Intergovernmental Revenue 896,137 880,697 (15,440) 988,814 Charges for Services - General Government 651,300 1,012,761 361,461 574,546 Utility Funds 3,500 5,680 2,180 3,675 Total Charges for Services 654,800 1,018,441 363,641 578,221 Fines 41,300 48,923 7,623 48,800 Miscellaneous - 647) Assessments 0 647 2,691 Investment Income 24,000 177,570.) 153,570 71,224 Rent 29,184 30,384./ 1,200 19,832 Donations 0 0 0 200 Refunds and Reimbursements 18,997 13,761 (5,236) 39,912 Street Light Fees 112,000 124,114 12,114 106,704 Computer Services 10,865 10,865 0 17,001 Other 1,700 1,094 (606) 523 Total Miscellaneous 196,746 358,435 161,689 258,087 Total Revenues 5,320,909 5,805,370 484,46 I 4,714,300 c [: C C C C C C C C C C C C C ~ ~ to 39 ~ I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL I GENERAL FUND Year Ended December 31, 1998 (Continued) I 1998 1997 fdouA. Over ....-~ I (Under) Budget Actual Budget Actual EXPENDITURES: I General Government - ~ayor and City Council- Personal Services $ 20,023 $ 20,024 $ 1 $ 20,024 Materials and Supplies 400 209 (191) 776 I Purchased Services 16,000 15,321 (679) 15,450 Other Services and Charges 21,880 22,834 954 19,815 't Total Mayor and City Council 58,303 58,388 85 56,065 :rr:- I Newsletter - Purchased Services 9,000 7,200 (1,800) 6,287 I /City Clerk - Personal Services 77,475 76,363 (1,112) 70,959 Materials and Supplies 480 881 401 1,483 Purchased Services 15,855 15,623 (232) 15,039 I Other Services and Charges 2,442 2,164 (278) 668 Total City Clerk 96,252 95,031 (1,221) 88,149 :II"'- ~ I JAdministration - Personal Services 71,077 62,076 (9,001) 68,071 Materials and Supplies 3,000 2,045 (955) 3,229 Purchased Services 12,950 12,760 (190) 12,193 I Other Services and Charges 4,053 4,539 486 3,319 Total Administration 91,080 81,420 (9,660) 86,812 1Jl.'i I -/ Financial Administration - Personal Services 171,784 164,065 (7,719) 161,284 Materials and Supplies 3,600 2,976 (624) 3,465 Purchased Services 4,915 4,298 (617) 3,572 I Other Services and Charges 5,991 4,339 (1,652) 7,002 Capital Outlay 0 0 0 853 Total Financial Administration 186,290 175,678 (10,612) 176,176 ~ I I / Elections - Personal Services 16,256 11 ,860 (4,396) 1,323 Materials and Supplies 250 146 (104) 0 I Purchased Services 690 1,305 615 1,151 Total Elections 17,196 13,311 (3,885) 2,474 ~ ~ I .-/ Assessing - Purchased Services 75,200 75,197 (3) 68,914 YlI J Legal and Accounting - 105,394 p.. <7- I Purchased Services 106,900 105,662 (1,238) 40 I - C CITY OF ANDOVER, MINNESOTA C STATEMENT OF REVENUES, EXPENDITURES AND CHAl\fGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND C Year Ended December 31, 1998 (Continued) f~ ~ 1998 1997 C Over (Under) C Budget Actual Budget Actual EXPENDITURES: (Continued) General Government - (Continued) C J Planning and Zoning - $ 153,243 $ 149,097 $ (4,146) $ Personal Services 134,311 Materials and Supplies 3,000 4,018 1,018 5,748 Purchased Services 9,489 6,628 (2,861 ) 11,149 C Other Services and Charges 5,372 4,829 (543) 6,136 Capital Outlay 3,500 0 (3,500) 7,520 Total Planning and Zoning :JJ?- 1..\ 174,604 164,572 (10,032) 164,864 j Data Processing - C Materials and Supplies 45,200 42,608 (2,592) 38,894 Capital Outlay 2,300 2,245 (55) 4,904 C Total Data Processing :Jll.l 47,500 44,853 (2,647) 43,798 /City Hall Building - Materials and Supplies 6,000 5,813 (187) 4,878 C Purchased Services 34,970 38,064 3,094 30,661 Other Services and Charges 19,050 14,467 (4,583) 7,815 Capital Outlay 997 997 0 4,750 C Total City Hall Building .:IV .3 61,017 59,341 (1,676) 48,104 J Fire Department Building - Materials and Supplies 2,700 1,951 (749) 1,413 C Purchased Services 35,800 31,454 (4,346) 33,951 Other Services and Charges 7,900 8,582 682 8,258 Total Fire Department Building 46,400 41,987 (4,413) 43,622 C jPublic Works Building - Materials and Supplit:s 11 ,900 15,962 4,062 7,900 Purchased Services 30,200 38,529 8,329 19,526 C Other Services and Charges 181,052 182,893 1,841 8,983 Capital Outlay 0 688 688 9,094 Total Public Works Building:PJ 3 223,152 238,072 14,920 45,503 J Senior Citizen Center - C Materials and Suppli(:s 800 452 (348) 432 Purchased Services 6,990 6,727 (263 ) 6,178 C Other Services and Charges 4,100 2,275 ( I ,825) 2,854 Total Senior Citizen Center ]:'I 3 11,890 9,454 (2,436) 9,464 I Equipment Building - 1,000 2,543 1,543 732 C Materials and Supplies Purchased Services 3,225 1,024 (2,20 I) 1,988 Other Services and Charges 700 814 114 0 C Total Equipment Building :IV 3 4,925 4,381 (544) 2,720 AI C --r ------ ----- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1998 (Continued) ?A.~ EXPENDITURES: (Continued) General Government - (Continued) / City Hall Garage - Materials and Supplies Purchased Services Total City Hall Garage J:1I 3 ~ield of Dreams Building- Materials and Supplies Purchased Services Other Services and Charges Total Field of Dreams Building~ \\ jEngineering - Personal Services Materials and Supplies Purchased Services Other Services and Charges CapiTtaIOluEtlay.. Ad.,;t.\) ota ngmeermg . Y' Total General Government Pu~ic Safety - Police - Materials and Supplies Purchased Services Total Police 1'1 f JFire Protection - Personal Services Materials and Supplies Purchased Services Other Services and Charges Capital Outlay , Total Fire Protection fl. b J Protective Inspection _ Personal Services Materials and Supplies Purchased Services Other Services and Charges Capital Outlay Total Protective Inspection 1Jf "3 Budget $ 150 1,700 1,850 2,520 15,600 4,450 22,570 329,898 16,500 7,100 12,000 o 365,498 1,599,627 o 719,670 719,670 360,852 28,705 17,800 126,930 38,280 572,567 232,113 9,850 23,925 14,106 837 280,831 1998 Actual $ 3 503 506 2,526 16,282 2,373 21,181 303,832 10,400 7,199 11 ,220 22,525 355,176 1,551,410 o 719,670 719,670 315,148 22,757 16,971 125,541 22,475 502,892 240,635 9,336 21,348 10,842 837 282,998 Over (Under) Budget $ (147) (1,197) (1,344) 6 682 (2,077) (1,389) (26,066) (6,100) 99 (780) 22,525 (10,322) (48,217) o o o (45,704) (5,948) (829) (1,389) (15,805) (69,675) 8,522 (514) (2,577) (3,264) o 2,167 1997 Actual $ 10 814 824 955 28,618 3,919 33,492 232,174 9,286 8,239 11,138 8,548 269,385 1,252,047 170 645,871 646,041 :$5' 281,308 27,704 16,180 125,303 40,839 491,334 220,607 8,996 4,458 14,933 5,161 254,155 42 ~ CITY OF ANDOVER, MINNESOTA C ' , STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND C Year Ended December 31,1998 (Continued) 1998 1997 C Over (Under) C fb..v(-. t1It.!LJ Budget Actual Budget Actual EXPENDITURES: (Continued) -- '/public Safety - (Continued) C Civil Defense - Personal Services $ 3,056 $ 3,034 $ (22) $ 2,837 Materials and Supplies 4,450 5,054 604 0 Purchased Services 1,420 1,223 (197) 1,253 C Other Services and Charges 3,650 3,557 (93) 2,156 Total Civil Defense '$- ~ 12,576 12,868 292 6,246 ~ Animal Control - C Materials and Supplies 350 181 (169) 186 Purchased Services 12,075 9,673 (2,402) 11,125 Total Animal Control fl 0\ 12,425 9,854 (2,571 ) 11,311 C Total Public Safety 1,598,069 1,528,282 (69,787) 1,409,087 Public Works - C v Streets and Highways - Personal Services 143,997 158,818 14,821 118,552 Materials and Supplies 23,500 21,240 (2,260) 24,318 ~ Purchased Services 14,510 15,512 1,002 13,536 Other Services and Charges 494,666 277,308 (217,358) 302,077 Capital Outlay 100,000 0 (100,000) 0 Total Streets and Highways :l'L 13 776,673 472,878 (303,795) 458,483 C ./ Snow and Ice Removal - 0 Personal Services 159,825 106,399 (53,426) 158,705 Materials and Supplies 125,300 84,861 (40,439) 144,620 C Purchased Services 2,900 2,422 (478) 2,300 Other Services and Charges 74,419 70,220 (4,199) 70,204 Capital Outlay /,: '3 1,100 1,124 24 0 C Total Snow and lGe Removal y\l \ 363,544 265,026 (98,518) 375,829 ./ Street Lighting - Purchased Services 26,000 20,964 (5,036) 19,437 C Other Services and Charges 100 350 250 50 Capital Outlay 2,500 3,060 560 2,241 Billed Services 113,700 112,575 (1,125) 90,036 C J Total Street Lighting ~l3 142,300 136,949 (5,351) 111,764 Street Signs - Personal Services 66,915 61,521 (5,394) 42,488 C Materials and Supplies 49,150 43,830 (5,320) 30,752 . , Purchased Services 310 176 (134) 301 Other Services and Charges 22,974 7,664 (15,310) 7,263 C Total Street Signs '.)Jt13 139,349 113,191 (26,158) 80,804 /43 C 1------ -=, I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1998 (Continued) M~ Budget EXPENDITURES: (Continued) Public Works - (Continued) Araffic Signals - Purchased Services /% [3 $ 25,000 Total Public Works s,'tation - Storm Sewers - Personal Services Materials and Supplies Purchased Services Other Services and Charges Capital Outlay Total Storm Sewers ~ '1 JTree Preservation and Weed Control- Personal Services Materials and Supplies Purchased Services Other Services and Charges Capital Outlay Total Tree Preservation and Weed Control Total Sanitation f:V 10 ~arks and Recreation - Personal Services Materials and Supplies Purchased Services Other Services and Charges Capital Outlay Miscellaneous Total Parks and Recreation :JlZ 1\ ~CYcling - Personal Services Materials and Supplies Purchased Services Other Services and Charges Capital Outlay Total Recycling $ \ 0 1,446,866 42,563 4,500 825 67,726 115,614 28,792 2,750 12,295 10,566 o 54,403 170,017 202,740 44,400 23,650 79,481 41,000 82,821 474,092 34,755 5,950 6,700 26,748 3,000 77,153 1998 Actual $ 17,350 1,005,394 21,481 12,103 296 32,813 o 66,693 21,331 1,413 4,644 6,958 o 34,346 101,039 196,923 42,704 25,297 73,155 40,818 82,234 461,131 39,585 1,118 3,202 29,943 2,925 76,773 Over (Under) Budget $ (7,650) (441,472) (21,082) 7,603 (529) (34,913) o (48,921) (7,461) (1,337) (7,651) (3,608) o (20,057) (68,978) (5,817) (1,696) 1,647 (6,326) (182) (587) (12,961) 4,830 (4,832) (3,498) 3,195 (75) (380) 1997 Actual $ 17,303 1,044,183 34,867 3,315 307 3,523 27,049 69,061 14,892 1,446 4,877 4,274 1,082 26,571 95,632 124,695 41,080 20,632 78,470 35,582 82,600 383,059 24,543 1,139 10,077 23,005 3,517 62.281 A4 CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended December 31, 1998 (Continued) 1998 1997 Over (Under) Budget Actual Budget Actual E/fiNDITURES: (Continued) nallocated - CDBG $ 35,000 $ 30,211 $ (4,789) $ 69,264 Insurance 32,000 27,969 (4,031) 21,777 Miscellaneous jiJ- ~ b 423,045 17,770 (405,275) 121,462 Total UnaIIocated 490,045 75,950 (414,095) 212,503 Total Expenditures 5,855,869 4,799,979 (1,055,890) 4,458,792 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (534,960) 1,005,391 1,540,351 255,508 OTHER FINANCING SOURCES (USES): Operating Transfers In 546,660 464,020 (82,640) 317,200 Operating Transfers Out (14,000) 0 14,000 (6,000) Proceeds from Sale of Property 2,300 2,303 3 407 Total Other Financing Sources (Uses) 534,960 466,323 (68,637) 311,607 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ 0 1,471,714 $ 1,471,714 567,115 FUND BALANCE - January 1 1,846,747 1,279,632 RESIDUAL EQUITY TRANSFER (870,038) 0 FUND BALANCE - December 31 $ 2,448,423 $ 1,846,747 ---[- ~ c c c c c c c C M . c ~ C ~ C ~ L ~ 45 C - - - -==-=- I I I I I I I I I I I I I I I I I I I 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. - ASSETS Cash and Investments Taxes Receivable - Delinquent Accounts Receivable Interest Receivable Due from Other Governmental Units TOTAL ASSETS CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMB~GBALANCESHEET December 31, 1998 With Comparative Totals for December 31, 1997 y/ ry' Forestry LRRWMO $ 22,100 $ 8,649 0 557 0 0 1,182 278 0 584 $ 23,282 $ 10,068 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Accrued Items Deferred Revenue Total Liabilities Fund Balance: Unreserved - Designated for Equipment Undesignated Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE $ $ 12 46 o 58 56 o 557 613 o 23,224 23,224 o 9,455 9,455 $ 23,282 $ 10,068 g) Drainage and EDA Mapping General $ 52,645 $ 72,696 0 0 105 0 1,738 1,251 0 0 $ 54,488 $ 73,947 $ 2,652 o o 2,652 $ 47 446 40,000 40,493 o 51,836 51,836 o 33,454 33,454 $ 54,488 $ 73,947 c ~ ~ ~ C ~ C C C c c c c c c c c c c ~-- ----=~ I I I '!QP .. if/ r;:J/ I ~/ .,52/ caPital../" Oak Wilt Trail and Septic Eqnipment Suppression Developer Totals Transportation Disposal Reserve Program Sea1coating 1998 1997 I $ 161,981 $ 6,951 $ 1,448,308 $ 145 $ 297,760 $ 2,071,235 $ 696,638 0 0 0 0 0 557 375 I 0 0 0 0 0 105 0 8,482 347 38,167 69 9,107 60,621 19,562 0 0 0 2,500 0 3,084 189 I $ 170,463 $ 7,298 $ 1,486,475 $ 2,714 $ 306,867 $ 2,135,602 $ 716,764 I $ 0 $ 0 $ 2,529 $ 0 $ 0 $ 5,296 $ 174 0 0 0 0 0 492 709 I 144,500 0 1,635 0 281,689 468,381 268,618 144,500 0 4,164 0 281,689 474,169 269,501 I 0 0 0 0 0 0 285,131 25,963 7,298 1,482,311 2,714 25,178 1,661,433 162,132 25,963 7,298 1,482,311 2,714 25,178 1,661,433 447,263 I I $ 170,463 $ 7,298 $ 1,486,475 $ 2,714 $ 306,867 $ 2,135,602 $ 716,764 I I I I I I 46 I CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Drainage and EDA Trail and Forestry LRRWMO Mapping General Transportation REVENUES: General Property Taxes $ 0 $ 13,889 $ 0 $ 0 $ 0 Intergovernmental - State 0 2,546 0 0 0 Other Grants 0 0 0 0 0 Charges for Services 12,892 0 24,438 0 0 Miscellaneous - Interest 1,527 496 2,689 3,043 15,238 Refunds and Reimbursements 0 0 0 0 0 Other 0 0 857 82,000 0 Total Revenues 14,419 16,931 27,984 85,043 15,238 EXPENDITURES: Current - Public Works 12,438 15,148 28,416 0 0 Economic Development 0 0 0 102,062 0 Capital Outlay 0 0 998 0 0 Total Expenditures 12,438 15,148 29,414 102,062 0 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,981 1,783 (1,430) (17,019) 15,238 OTHER FINANCING SOURCES (USES): Operating Transfers In 0 0 0 0 0 Operating Transfers Out 0 0 0 0 0 Proceeds From Sale of Property 0 0 0 0 0 Total Other Financing Sources (Uses) 0 0 0 0 0 EXCESS OF REVENUES AND OTHERSOURCESOVBR(UNDER) EXPENDITURES AND OTHER USES 1,981 1,783 (1,430) (17,019) 15,238 r FUND BALANCE (DEFICIT) - January 1 21,243 7,672 53,266 52,473 10,725 RESIDUAL EQUITY TRANSFER 0 0 0 (2,000) 0 FUND BALANCE - December 31 $ 23 ,224 $ 9.455 $ 51.836 $ 33.454 $ 25,963 c c ~ ~ ~ ~ ~ ~ ~ ~ c c ~ ~ ~ c m c m ::=--. I I I I Capital Tota]s Septic Equipment Developer Oak Wilt December 31 Disposal Reserve Sealcoating Suppression 1998 1997 I $ 0 $ 0 $ 0 $ 0 $ 13,889 $ 14,119 0 0 0 0 2,546 2,546 0 0 0 10,000 10,000 40,260 I 0 0 0 0 37,330 30,873 601 75,536 15,822 ]68 115,120 29,630 0 0 0 7,057 7,057 5,144 I 0 0 0 0 82,857 78,596 601 75,536 15,822 17,225 268,799 201,168 I 700 0 0 14,511 71 ,213 78,040 0 0 0 0 102,062 73,993 0 174,712 0 0 175,710 83,967 700 174,712 0 14,511 348,985 236,000 I (99,176) 15,822 2,714 (80,186) (99) (34,832) I 0 285,718 0 0 285,718 107,501 0 (50,000) 0 0 (50,000) (269,93 I) 0 0 0 0 0 43,835 I 0 235,718 0 0 235,718 (118,595) I (99) 136,542 15,822 2,714 155,532 (153,427) 7,397 285,131 9,356 0 447,263 600,690 I 0 1,060,638 0 0 1,058,638 0 $ 7,298 $ 1,482,311 $ 25,178 $ 2,714 $ 1,661,433 $ 447 ,263 I I I I I 47 I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FORESTRY FUND Year Ended December 31, 1998 REVENUES: Intergovernmental - Other Grants Charges for Services Miscellaneous - Investment Income Refunds and Reimbursements Total Revenues Budget $ 0 15,516 1,200 o 16,716 EXPENDITURES: Public Works- Personal Services Materials and Supplies Purchased Services Other Services and Charges Total Expenditures 9,516 1,000 500 5,700 16,716 EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES: Operating Transfers In EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ FUND BALANCE - January 1 RESIDUAL EQUITY TRANSFER FUND BALANCE - December 31 --~-- 1998 Actual Over (Under) Budget $ 0 12,892 1,527 o 14,419 $ 0 (2,624) 327 o (2,297) 10,736 1,343 359 o 12,438 1,220 343 (141) (5,700) (4,278) o 1,981 1,981 o o o $ 1,981 1,9$1 21,243 o $ 23 ,224 1997 o ~ C C C C C c m c c c c m c ~ c c m Actual $ 40,260 21,045 1,312 35 62,652 11,205 119 19 o 11,343 51,309 o 1,501 52,810 (1,362) (30,205) $ 21,243 48 -;_. ,------ I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES I IN FUND BALANCE - BUDGET AND ACTUAL LRRWMO FUND Year Ended December 31, 1998 I 1998 1997 Over I (Under) Budget Actual Budget Actual REVENUES: I General Property Taxes $ 14,090 $ 13,889 $ (201) $ 14,119 Intergovernmental - State Aids 2,539 2,546 7 2,546 I Miscellaneous - Investment Income 50 496 446 227 Refunds and Reimbursements 866 0 (866) 0 I Total Revenues 17,545 16,931 (614) 16,892 EXPENDITURES: I Public Works- Personal Services 12,325 12,225 (100) 11,284 Materials and Supplies 555 0 (555) 0 .- Purchased Services 460 0 (460) 0 I Other Services and Charges 4,205 2,923 (1,282) 2,947 Total Expenditures 17,545 15,148 (2,397) 14,231 I EXCESS OF REVENUES OVER EXPENDITURES $ 0 1,783 $ 1,783 2,661 I FUND BALANCE - January 1 7,672 5,011 FUND BALANCE - December 31 $ 9,455 $ 7,672 I I I I I I I 49 - C CITY OF ANDOVER, MINNESOTA ~ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ~ DRAINAGE AND MAPPING FUND Year Ended December 31, 1998 1998 1997 C Over (Under) C Budget Actual Budget Actual REVENUES: Charges for Services - C Drainage and Mapping $ 49,000 $ 24,4} 8 $ (24,562) $ 5,328 Miscellaneous - Investment Income 700 2,689 1,989 2,684 ~ Other 0 857 857 396 Total Revenues 49,700 27,984 (21,716) 8,408 EXPENDITURES: C Public Works- Materials and Supplies 6,500 2,184 (4,316) 963 C Purchased Services 37,500 23,587 (13,913) 14,965 Other Services and Charges 2,200 2,645 445 2,232 Capital Outlay 3,500 998 (2,502) 3,481 Total Expenditures 49,700 29,414 (20,286) 21,641 C EXCESS OF REVENUES (UNDER) EXPENDITURES $ 0 (1,430) $ (1,430) (13,233) C FUND BALANCE - January 1 53,266 66,499 FUND BALANCE - December 31 $ 51,836 $ 53,266 C C C C C C C 50 ~ --- - -.- - ~----[-- -- -- -- -- - 1-. -------=-;:- I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL I EDA GENERAL FUND Year Ended December 31, 1998 I 1998 1997 Over (Under) I Budget Actual Budget Actual REVENUES: Charges for Services $ 0 $ 0 $ 0 $ 1,200 Miscellaneous - I Investment Income 0 3,043 3,043 314 Other 82,000 82,000 0 78,200 Total Revenues 82,000 85,043 3,043 79,714 I EXPENDITURES: Economic Development - Personal Services 98,900 97,364 (1,536) 69,523 I Materials and Supplies 2,000 100 (1,900) 82 Purchased Services 9,390 4,565 (4,825) 2,733 Other Services and Charges 1,270 33 (1,237) 1,655 . Total Expenditures 111,560 102,062 (9,498) 73,993 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (29,560) (17,019) 12,541 5,721 I OTHER FINANCING SOURCES (USES): Operating Transfers Out 0 0 0 (22,230) Proceeds From Sale of Property 28,560 0 (28,560) 43,835 I Total Other Financing Sources (Uses) 28,560 0 (28,560) 21,605 EXCESS OF REVENUES AND OTHER I SOURCES OVER (UNDER) I EXPENDITURES AND OTHER USES $ (1,000) (17,019) $ (16,019) 27,326 I FUND BALANCE - January 1 52,473 25,147 RESIDUAL EQUITY TRANSFER (2,000) 0 FUND BALANCE - December 31 $ 33,454 $ 52,4 73 I I I I I 51 I -- c c c c c ~ ~ ~ ~ ~ CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRAIL AND TRANSPORTATION Year Ended December 31, 1998 1998 1997 Over (Under) Budget Actual Budget Actual REVENUES: Miscellaneous - Interest $ 0 $ 15,238 $ 15,238 $ 7,715 Total Revenues 0 15,238 15,238 7,715 EXPENDITURES 0 0 0 0 EXCESS OF REVENUES OVER EXPENDITURES $ 0 15,238 $ 15,238 7,715 FUND BALANCE - January 1 10,725 3,010 FUND BALANCE - December 31 $ 25,963 $ 10,725 rM .. 52 ~ ~ C ~ C C C C . ---- -- 1- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SEPTIC DISPOSAL FUND Year Ended December 31, 1998 1998 1997 Over (Under) Budget Actual Budget Actual REVENUES: Charges for Services $ 3,500 $ 0 $ (3,500) $ 3,300 Miscellaneous - Interest 50 601 551 458 Total Revenues 3,550 601 (2,949) 3,758 EXPENDITURES 0 700 700 0 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 3,550 (99) $ (3,649) 3,758 FUND BALANCE - January 1 7,397 3,639 FUND BALANCE - December 31 $ 7,298 $ 7,397 . 53 CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES Il'l FUND BALANCE - BUDGET AND ACTUAL CAPITAL EQUIPMENT RESERVE FUND Year Ended December 31,1998 1998 1997 Over (Under) Budget Actual Budget Actual REVENUES: Miscellaneous - Investment Income $ 0 $ 75,536 $ 75,536 $ 7,071 EXPENDITURES: Capital Outlay 97,631 174,712 77,081 80,486 EXCESS OF REVENUES (UNDER) EXPENDITURES (97,631) (99,176) (1,545) (73,415) OTHER FINANCING SOURCES (USES): Operating Transfers In 275,718 285,718 10,000 106,000 Operating Transfers Out 0 (50,000) (50,000) (246,200) Total Other Financing Sources (Uses) 275,718 235,718 (40,000) (140,200) EXCESS OF REVENUES AND OrnER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ 178,087 136,542 $ (41,545) (213,615) FUND BALANCE - January 1 285,131 498,746 RESIDUAL EQUITY TRANSFER 1,060,638 0 FUND BALANCE - December 31 $ 1 ,482,311 $ 285,131 ----[- 54 c c c c c ~ ~ C C ~ ~ ~ ~ ~ w m m c c 1-- ---=c I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEVELOPERSEALCOATINGFUND Year Ended December 31, 1998 1998 1997 Over (Under) Budget Actual Budget Actual REVENUES: Miscellaneous - Interest $ 0 $ 15,822 $ 15,822 $ 9,356 EXPENDITURES 0 0 0 0 EXCESS OF REVENUES OVER EXPENDITURES $ 0 15,822 $ 15,822 9,356 FUND BALANCE - January 1 9,356 0 FUND BALANCE - December 31 $ 25,178 $ 9,356 55 CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OAK WILT SUPPRESSION FUND Year Ended December 31, 1998 1998 1997 Over (Under) Budget Actual Budget Actual REVENUES: Intergovernmental - Other Grants $ 0 $ 10,000 $ 10,000 $ 0 Miscellaneous - Interest 0 168 168 493 Refunds and Reimbursements 0 7,057 7,057 5,109 Total Revenues 0 17,225 17,225 5,602 EXPENDITURES: Public Works- Materials and Supplies 0 0 0 395 Purchased Services 0 14,511 14,511 290 Other Services and Charges 0 0 0 33,621 Total Expenditures 0 14,511 14,511 34,306 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 0 2,714 2,714 (28,704) OTHER FINANCING USES: Operating Transfers Out 0 0 0 (1,501) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 2,714 $ 2,714 (30,205) FUND BALANCE - January 1 0 0 RESIDUAL EQUITY TRANSFER 0 30,205 FUND BALANCE - December 31 $ 2,714 $ 0 -~---- 1--------=, 56 c c c c c ~ w c W to ~ ~ C m c m c c c I I I I II I I II I I I I I JI I I I I I I J I - - 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. - --~ c c c c c ~ ~ ~ c ~ ~ ~ c ~ o ~ m c c I----cc- ~-, G.O. G.O. G.O. G.O. EDA Public G.O. G.O. G.O. Improvement Improvement Improvement Improvement Project Improvement Improvement Refunding Bonds Bonds Bonds Bonds Revenue Bonds Bonds Bonds Bonds Totals ® of 1993A of 1994C of 1995A of 1996C of 1997 of 1997A of 1997B of 1998 1998 1997 $ 253,245 $ 220,489 E 916,638 $ 830,814 $ 17,611 S 1,470,700 $ 979,244 S 57,672 S ,354.976 � $5,730,246 0 0 0 0 0 0 0 7,134 74,551 7,560 238,949 236,328 107,028 294,516 0 637,995 3,459,159 0. 5,938,798 3,498,902 6 4,079 0 1,558 0 0 0 0 10,162 11,154 0 9,524 47,066 41,434 0 41,782 35,108 417 274,607 165,427 661 1,534 324 952 0 0 0 7,681 135,945 1 9,922 $ 492 ,861 $ 4 71,954 $ 1,07 1,056 $ 1,16 9,274 S 17,611 S2,15 0,477 S 4,473,511 S 7 2,904 $ 13,7 89,039 $ 9,43 3,211 E 553 $ 0 $ 0 S 70 $ 270 S 360 S 725 S 2,890 S 5,943 S 10,729 238,955 2 40, 4 07 10 7,028 29 6,074 0 63 7,995 3,45 7, 134 6,0 23,51 1 3,517,616 239,508 240,407 107,028 296,144 270 638,355 3,459,884 10,024 6,029,454 3,528,345 253,353 231,547 964,028 873,130 17,341 1,512,122 1,013,627 62,880 7,770,700 6,080,923 0 0 0 0 0 0 0 0 (11,115) (17 6,057) 253,353 231,547 964,028 873,130 17,341 1,512,(22 - 1,013,627 62,880 5,904,866 S 4 92,861 S 471,954 $ 1,071,056 S1,169,274 $ 17,611 $ 2,150,477 $ 4,473,511 $ 72,904 $13,7 89,039 $ 9,433,211 i 1 J� j® 57 I, REVENUES: T",,, Tax Increments Special Assessments Intergovernmental. State Aids Miscellaneous - Investment Income Oth", Total Revenues EXPENDITURES: Debt Service. Bond Principal Interest and Fiscal Charges Oth", Total Expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES), Operating Transfers In Bond Proceeds Total Other Financing Sources (Uses) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE (DEFICIT) - January 1 RESIDUAL EQUITY TRANSFERS IN (OUT) FUND BALANCE (DEFICIT) _ December 31 CITY OF ANDOVER, MINNESOTA C DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES C AND CHANGES IN FUND BALANCE Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 C State TIF TIF G.O. G.O. G.O. G.O. Certificates G.O. Aid TIF Bonds Boods Improvement Improvement Improvement Improvement of Bonds Bonds Commercial of 1993B of 1994B Bonds Bonds Bonds Bonds C Indebtednes!: ofl991A of 1988B Revitalization Project I-I Project 1-2 orl977A ofJ978 of 1985B ofl986A 120,635 225,939 0 $ 0 $ 0 $ 0 $ 0 0 $ 0 0 0 0 0 609,561 63,887 142.383 0 0 0 0 0 0 0 5,472 0 0 22,440 0 0 634 C 35,963 83,867 51,700 0 0 0 0 0 0 3,253 300 16,351 19,026 0 55,040 0 0 0 C 0 0 0 0 0 0 0 0 0 0 156,598 313,059 52,000 631,384 82,913 142,383 77,480 0 0 634 130,000 1,000,000 50,000 195,000 SO,OOO 90,000 60,000 40,000 170,000 0 ~ 20,136 56,000 4,096 397,675 14,865 43,005 26,250 1,400 21,438 0 2,177 1,685 0 935 0 0 0 0 4,975 5,147 152,313 1,057,685 54,096 593,610 64,865 133,005 86,250 41,400 196,413 5,147 ~ 4,285 (744,626) (2,096) 37,774 18,048 9,378 (8,770) (41,400) (196,413) (4,513) 30,000 0 1,099 0 0 0 0 0 302,335 122,805 C 0 746,546 0 0 0 0 0 0 0 0 30,000 746,546 1,099 0 302,335 122,805 C 34,285 1,920 (997) 37,774 18,048 9,378 (8,770) (41,400) 105,922 118,292 C 56,205 53,333 997 450,421 225,326 366,073 611,174 102,391 (20,141) (118,292) m 0 (55,253) 0 0 0 0 (60,991) 0 $ 90,490 0 0 $ 488,195 S 243,374 $ 375,451 S 602,404 85,781 0 C C C C C C C --~ - 1-- - ----.- I I I G.O. Improvement G.O. G.O. G.O. G.O. G.O. BOA Public G.O. G.O. GO Refunding Improvement Improvement Improvement Improvement Improvement Project Improvement Improvement Refunding I Bonds Bonds Bonds Bonds Bonds Bonds Revenue Bonds Bonds Bonds Bonds Totals of1986C11997C of 1989 of 1993A of 1994C of 1995A of 1996C of 1997 of1997A of 19978 of 1998 1998 1991 0 0 0 $ 0 0 0 0 0 0 7.681 $ 354,255 $ 386,631 0 0 0 0 0 0 0 0 0 0 8'5.831 868,657 I 99,911 37,095 97,899 99.874 132,111 152,035 0 773.795 1,878,606 0 3.299,872 2,537,182 0 0 0 0 0 0 0 171.530 183,573 I 79,255 0 0 14,124 74,123 69,257 0 75,018 63,628 6'6 469,991 280.374 0 0 0 0 0 0 165,780 0 0 0 165,780 0 179.166 37,095 97,899 113,998 206,234 221,292 165,780 848,813 1,942.234 8,297 5,277;259 4,256,417 I 210,000 310,000 365.000 110,000 215,000 55,000 35,000 650,000 850,000 0 4.585,000 7,621,000 31,973 52,740 97,894 52.317 115,580 25,295 131,600 142,085 273,505 825 1,508,679 1,608,758 0 10,586 1,982 0 0 70 269 360 726 0 28,912 24,205 I 241,973 373,326 464,876 162,317 330,580 80,365 166,869 792.445 1,124,231 825 6.122,591 9.253.963 (62,807) (336,231) (366,977) (48,319) (124,346) 140,927 (1,089) 56,368 818,003 7,472 (845,332) (4.997,546) I 0 362,740 453.103 21,560 12,714 0 0 586,625 118,645 0 2.011,626 658,052 0 0 0 0 0 0 0 0 0 155 746,701 675,645 I 0 362,740 453,103 21,560 12,714 0 586,625 118,645 1S5 2,758.327 1.333,697 I (62,807) 26,509 86.126 (26,759) (111,632) 140,927 (',089) 642,993 936,648 7,627 1,912,995 (3.663.849) 1,019,784 (37,624) 167,227 258,306 1,075,660 732,203 18,430 869,129 74,264 0 5,904,866 9,476,562 I 0 0 0 0 0 0 2,715 55,253 (58,276) 92,153 I 956,977 $ (11,115) $ 253.353 $ 231,547 $ 964,028 $ 873,130 17,341 $1,512,122 $ 1,013,627 62,880 $7,759,585 $ 5,904,866 1 I - I ~ I . I 1 ~ ~ J I - 58 1 I ~ 1 - ~ ~ ~ o c ~ to W m m w w m ~ c c c c c -=---=-- ~-- ,-- --- r--- I I I I I I I I I I I I I j I 11 I ]1 ] ~I JI 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. ASSETS Cash and Investments Special Assessments Receivable _ Deferred Delinquent AccountslLoans Receivable Interest Receivable Due from Other Governmental Units Prepaid Items TOTAL ASSETS LIABILITIES AND FUND BALANCE (DEFICIT) LIABILITIES: Accounts Payable Contracts Payable Deferred Revenue Total Liabilities FUND BALANCE (DEFICIT) Unreserved - Designated for Projects Designated for Equipment Undesignated Total Fund Balance (Deficit) TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) CITY OF ANDOVER, MINNESOTA ~ ~ ~ ~ C ~ ' ' ~ ~ ~ C C ~ ~ C C ~ C ~ C 1.------ CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 3 I, 1998 With Comparative Totals for December 31, 1997 Water Storm Sewer State Aid Trunk Sewer Trunk Unfinanced Revolving Proj ect Project Project Projects Projects $ 345,463 $ (101,680) $1,038,219 $ (362,008) $ (570,400) 1,103,991 0 98,489 720,629 51,248 7,641 0 10 0 295 0 0 0 0 750 0 0 50,264 0 0 1,918 0 387 0 182,176 0 0 0 0 0 $1,459,013 $ (101,680) $1,187,369 $ 358,621 $ (335,931) $ 16,084 o 1,111,632 1,127,716 $ o o o o $ 1,423 o 98,499 99,922 $ 7,194 66,459 720,629 794,282 $ 20 o 51,543 51,563 331,297 o o 331,297 o o (10 I ,680) (101,680) 1,087,447 o o 1,087,447 o o (435,661) (435,661) o o (387,494) (387,494) $1,459,013 $ (101,680) $1,187,369 $ 358,621 $ (335,931) ---~ I I I I Tax Public Pennanent State Aid Increment Park Works Improvement Total I Proj ects Projects Dedication Project Revolving 1998 1997 $ 762,734 $ 720,898 $ 103,1\8 $ 191,224 $ 115,114 $ 2,242,682 $ 7,656,425 I 1,601 0 0 0 400,652 2,376,610 2,066,499 0 0 0 0 51,534 59,480 16,409 I 0 116,023 0 6,805 2,635 126,213 144,230 13,834 72,719 1\,610 0 26,557 174,984 403,929 76,234 31,423 1,125 0 1,227 294,490 195,226 I 0 0 2,175 0 0 2,175 0 $ 854,403 $ 941,063 $ 1\8,028 $ 198,029 $ 597,719 $ 5,276,634 $10,482,718 , I I $ 12,135 $ 75,893 $ 788 $ 13,735 $ 4,395 $ 131,667 $ 491,219 0 72,822 0 0 0 139,281 458,146 I 1,601 116,023 0 0 452,186 2,552,113 2,215,916 13,736 264,738 788 13,735 456,581 2,823,061 3,165,281 I 840,667 676,325 0 184,294 141,138 3,261,168 7,990,875 0 0 1\7,240 0 0 117,240 549,336 I 0 0 0 0 0 (924,835) (1,222,774) 840,667 676,325 1\7,240 184,294 141,138 2,453,573 7,317,437 I $ 854,403 $ 941,063 $ 118,028 $ 198,029 $ 597,719 $ 5,276,634 $10,482,718 I I I I 59 I CITY OF ANDOVER, MINNESOTA ~ CAPITAL PROJECTS FUNDS ~ COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31,1998 With Comparative Totals forthe Year Ended December 31, 1997 ~ Improvement Improvement ~ Water Storm Sewer Bonds Bnnds Trunk Sewer Trunk of 1997A of 1997B Unfinanced City Project Project Project Project Project Projects Buildings REVENUES: C Special Assessments $ 123,654 $ 0 $ 42,681 $ 0 $ 0 $ 903,411 $ 0 Intergovernmental - State Aids 0 0 0 0 0 0 0 Other Revenue - ~ Investment Income 0 0 90,891 0 3,338 0 16,147 Park Dedication Fees 0 0 0 0 0 0 0 Refunds and Reimbursements 0 0 0 0 6,215 0 0 Miscellaneous 1,307,570 28,105 523.891 47,037 0 0 0 W Total Revenues 1,431,224 28,105 657,463 47,037 9,553 903,411 16,147 EXPENDITURES: W Capital Projects - Capital Outlay 771,498 0 125,435 0 2,270,472 394,230 27.753 Interest 7,141 7,313 0 5,910 8 40,734 0 Total Expenditures 778,639 7,313 125,435 5,910 2,270,480 434,964 27,753 to EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 652,585 20,792 532,028 41.127 (2,260,927) 468,447 (11,606) ~ OTHER FINANCING SOURCES (USES): l' Operating Transfers In 0 0 0 376,333 0 0 4,671 Operating Transfers Out (551,656) 0 (412,692) (521,309) (376,333) 0 0 W Bond Proceeds 0 0 0 0 0 0 0 Total Other Financing Sources (Uses) (551,656) 0 (412,692) (144,976) (376,333) 0 4,671 EXCESS OF REVENUES AND OTHER W FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 100,929 20,792 119,336 (103,849) (2,637,260) 468,447 (6,935) ~ FUND BALANCE (DEFICID- January I 230,368 (122,472) 968,111 103,849 2,639,975 (904,108) 6,935 RESIDUAL EQUITY TRANSFERS 0 0 0 0 (2,715) 0 0 W FUND BALANCE (DEFICIT)- December 31 $ 331,297 $ (101,680) $1,087,447 $ 0 $ 0 $ (435,661) $ 0 ~ W " ~ C I C I --- -----, -- --- 1-- -- I , I I I .> <-_.~" / S,tate Aid Tax Public Permanent Revolving State Aid Increment Park Works Improvement Old City Hall Total Projects Projects Projects Dedication Project Revolving Remodel 1998 1997 I $ 12,957 $ 1,713 $ 0 $ 0 $ 0 $ 275,911 $ 0 $ 1,360,327 $ 1,275,839 39,642 447,384 500,000 0 0 0 0 987,026 913,266 I 0 14,898 100,806 18,268 26,036 0 0 764,708 0 0 0 14,666 0 0 0 600,28 I 0 0 34 24,033 0 0 0 33,265 I 6,101 0 23,877 5,831 0 0 0 196,658 58,700 463,995 624,717 62,798 26,036 275,911 0 3,784,017 I 0 378,065 2,035,075 494,894 367,611 194,072 14,832 7,073,937 11,996,182 0 0 0 0 0 3,368 0 64,474 96,927 I 0 378,065 2,035,075 494,894 367,611 197,440 14,832 7,138,411 12,093,109 58,700 85,930 (1,410,358) (432,096) (341,575) 78,471 (14,832) (2,533,314) (8,309,092) I 0 0 0 0 0 0 14,832 395,836 5,651,653 I (250,000) 0 (39,659) 0 (14,832) (541,481) 0 (2,707,962) (6,252,475) 0 0 0 0 0 0 0 0 11 ,544,445 (250,000) 0 (39,659) 0 (14,832) (541,481) 14,832 (2,312,126) 10,943,623 I 0 (191,300) 85,930 (1,450,017) (432.096) (356,407) (463,010) 0 (4,845,440) 2,634,531 ~ I (196,194) 754,737 2,126,342 549,336 540,701 619.857 0 7,317,437 4,775,059 ~ 0 0 0 0 0 (15,709) 0 (18,424) (92,153) I $ (387,494) $ 840,667 $ 676,325 $ 117,240 $ 184,294 $ 141,138 $ 0 $2,453,573 $ 7,317,437 I 1 I " 1 I I , , " . 1 I j 60 j I j , ~ c ~ ~ c ~ ~ ~ ~ c ~ ~ ~ ~ ~ c ~ ~ o c --___.--r- --- ----. --,--,--- ----:c.-cccc. I I I I I I I I I I I I I I I I I I I 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 ofthe municipal enterprise on the same basis as they can the performance of investor-owned enterprises. CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals for December 31, 1997 ASSETS Water Sewer S 988,531 $ 703,224 0 0 0 2,443 238,535 224,181 48,665 33,092 0 3,094 14,165 0 502 37,620 1,290,398 1,003,654 681,699 168,111 952,071 19,465 11,382,482 15,585,500 13,016,252 15,773,076 (2,510,603) (3,390,862) 10,505,649 12,382,214 S 11,796,047 $ 13,385,868 CURRENT ASSETS: Cash and Cash Equivalents Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due From Other Governmental Units Inventory Prepaid Items Total Current Assets PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment Machinery Collection and Distribution System Total Cost Less: Accumulated Depreciation Net Property, Plant and Equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Current Liabilities: Accounts Payable Accrued Items Due to Other Governmental Units Deferred Revenue Total Current Liabilities FUND EQUITY: Contributed Capital Retained Earnings: Unreserved Total Fund Equity S 16,142 $ 2,866 1,146 556 484 0 0 534 17,772 3,956 12,190 9,822 29,962 13,778 10,447,904 12,306,841 1,318,181 1,065,249 11,766,085 13,372,090 S 11,796,047 $ 13,385,868 COMPENSATED ABSENCES PAYABLE Total Liabilities TOTAL LIABILITIES AND FUND EQUITY . , ;.- l-- - --c- ~ C C C C ~ ~ C ~ C ~ C C ~ C C C C ~ ~ Totals 1998 1997 $ 1,691,755 $ 1,528,053 0 8,462 2,443 4,352 462,716 398,098 ' 81,757 53,777 3,094 13,362 14,165 12,690 38,122 45,959 2,294,052 2,064,753 849,810 768,984 971,536 931,860 26,967,982 23,759,038 1 28,789,328 25,459,882 (5,901,465) (5,283,675) 22,887,863 20,176,207 ' $ 25,181,915 $ 22,240 $ 19,008 $ 23,460 1,702 2,152 484 634 534 2,032 21,728 28,278 22,012 28,430 ' 43,740 56,708 i 22,754,745 20,020,983 a 2,383,430 2,163,269 25,138,175 22,184,252 $ 25,181,915 $ 22,240;960 61 1 , CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Water Sewer OPERATING REVENUES: User Charges $ 825,687 $ 912,562 Meters 65,122 0 Permit Fees 18,975 0 Penalties 14,226 15,468 Other 4,571 100 Total Operating Revenues 928,581 928,130 OPERATING EXPENSES: Personal Services 298,918 128,594 Supplies 56,398 9,337 Other Services and Charges 74,736 49,255 Disposal Charges 0 542,883 Depreciation 312,101 305,688 Total Operating Expenses 742,153 1,035,757 OPERATING INCOME (LOSS) 186,428 (107,627) NON-OPERATING REVENUES: Investment Income 82,219 57,078 INCOME (LOSS) BEFORE OPERATING TRANSFERS 268,647 (50,549) Operating Transfers In 0 30,500 Operating Transfers Out (321,000) (75,718) Total Operating Transfers (321,000) (45,218) NET INCOME (LOSS) (52,353) (95,767) Add: Depreciation Charged Against Contributed Capital 197,235 277,946 RETAINED EARNINGS - January 1 1,246,999 916,270 RESIDUAL EQUITY TRANSFER (73,700) (33,200) RETAiNED EARNINGS - December 31 $ 1,318,181 $ 1,065,249 ------r- ~ C ~ ~ c ~ ~ ~ C C ~ ~ ~ ~ ~ C ~ aL I ~I 1--.-- =. I I I I Totals I 1998 1997 $ 1,738,249 $ 1,491,907 65,122 37,180 I 18,975 12,082 29,694 24,314 4,671 454 I 1,856,711 1,565,937 I 427,512 339,738 65,735 49,476 123,991 201,064 I 542,883 518,571 617,789 603,269 1,777,910 1,712,118 I 78,801 (146,181) I 139,297 87,673 218,098 (58,508) I 30,500 0 (396,718) (141,000) I (366,218) (141,000) (148,120) (199,508) I 475,181 475,180 I 2,163,269 1,887,597 (106,900) 0 I $ 2,383,430 $ 2,163,269 "I I 62 - I - - - - CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBnITNG STATEMENT OF CASH FLOWS Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Totals Water Sewer 1998 1997 CASH FLOWS FROM OPERATING ACTNITIES: Operating Income (Loss) $ 186,428 $ (107,627) $ 78,80 I $ (146,181) Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities: Depreciation 312,101 305,688 617,789 603,269 Change in Assets and Liabilities: Decrease in Special Assessments Receivable 0 10,371 10,371 901 (Increase) Decrease in Accounts Receivable (49,254) (15,364) (64,618) 202,998 (Increase) Decrease in Due From Other Governmental Units 0 10,268 10,268 2,415 (Increase) in Inventory (1,475) 0 (1,475) (961) (Increase) Decrease in Prepaid Items (402) 8,239 7,837 2,788 Increase (Decrease) in Accounts Payable (2,105) (2,347) (4,452) 3,044 Increase in Accrued Items (3,004) (3,864) (6,868) 10,425 Increase (Decrease) in Due to Other Governmental Units (150) 0 (150) (2,004) (Decrease) in Deferred Revenue 0 (1,498) (1,498) (900) Total Adjustments 255,711 311 ,493 567,204 821,975 NET CASH PROVIDED BY OPERATING ACTNITIES 442,139 203,866 646,005 675,794 CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES: Transfers From Other Funds 0 30,500 30,500 0 Transfers To Other Funds (394,700) (108,918) (503,618) (141,000) Net Cash Used by Noncapital Financing Activities (394,700) (78,418) (473,118) (141,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Fixed Assets (80,738) (39,763) (120,501) (101,528) CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income 68,088 43,228 111,316 63,691 NET INCREASE IN CASH AND CASH EQUIVALENTS 34,789 128,913 163,702 496,957 CASH AND CASH EQUIVALENTS, JANUARY 1 953,742 574,311 1,528,053 1,031,096 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 988,531 $ 703,224 $ 1,691,755 $ 1,528,053 -~- 63 ~ C ~ ~ ~ m m ~ m m ~ c m m m ~ c c c ,----.-=. I I I I I I I I I I I I I I I - I I I - I - . CITY OF ANDOVER, MINNESOTA COMPARATIVE BALANCE SHEET - WATER FUND December 31 1998 1997 ASSETS CURRENT ASSETS: Cash and Cash Equivalents Accounts Receivable Interest Receivable Inventory Prepaid Items Total Current Assets TOTAL ASSETS $ 988,531 $ 953,742 238,535 189,281 48,665 34,534 14,165 12,690 502 100 1,290,398 1,190,347 681,699 621,171 952,071 931,860 11,382,482 9,861,744 13,016,252 11,414,775 (2,510,603) (2,198,501) 10,505,649 9,216,274 $ 11,796,047 $ 10,406,621 PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment Machinery Distribution System Total Cost Less: Accumulated Depreciation Net Property, Plant and Equipment LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable Accrued Items Due to Other Governmental Units Total Current Liabilities $ 16,142 $ 18,247 1,146 1,485 484 634 17,772 20,366 12,190 14,855 29,962 35,221 10,447,904 9,124,401 1,318,181 1,246,999 11,766,085 10,371,400 $ 11,796,047 $ 10,406,621 COMPENSATED ABSENCES PAYABLE Total Liabilities FUND EQUITY: Contributed Capital Retained Earnings: Unreserved Total Fund Equity TOTAL LIABILITIES AND FUND EQUITY 64 --- .. Ii.J CITY OF ANDOVER, MINNESOTA WATER FUND COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1998 and 1997 c c ~ c c m m ~ m ~ c ~ ~ 1998 1997 Amount Percent Amount Percent OPERATING REVENUES: User Charges $ 825,687 89.0 % $ 641,203 91.4 % Meters 65,122 7.0 37,180 5.3 Permit Fees 18,975 2.0 12,082 1.7 Penalties 14,226 1.5 11,112 1.6 Other 4,571 0.5 294 0.0 Total Operating Revenues 928,581 100.0 701,871 100.0 OPERATING EXPENSES: Personal Services 298,918 32.3 211,315 30,1 Supplies 56,398 6.1 44,679 6.4 Other Services and Charges 74,736 8.0 157,763 22.5 Depreciation 312,101 33.6 302,447 43.1 Total Operating Expenses 742,153 80.0 716,204 102.1 OPERATING INCOME (LOSS) 186,428 20.0 (14,333) (2.1) NON-OPERATING REVENUES: Investment Income 82,219 8,9 63,059 9.0 Sale of Used Equipment 0 0.0 0 0.0 Total Non-Operating Revenues 82,219 8.9 63,059 9.0 INCOME BEFORE OPERATING TRANSFERS 268,647 28.9 % 48,726 6.9 % Operating Transfers Out (321,000) (131,000) NET INCOME (LOSS) (52,353) (82,274) Add: Depreciation Charged Against Contributed Capital 197,235 197,235 RETAINED EARNINGS - January 1 1,246,999 1,132,038 RESIDUAL EQUITY TRANSFER (73,700) 0 RETAINED EARNINGS - December 31 $ 1,318,181 $ 1,246,999 m ~ c o c 65 - ---,--- - l----~ ; I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA COMPARATIVEBALANCESHEET-SEWERFUND ASSETS December 31 1998 1997 $ 2,866 $ 5,213 556 667 534 2,032 3,956 7,912 9,822 13,575 13,778 21,487 12,306,841 10,896,582 1,065,249 916,270 13,372,090 11,812,852 $ 13,385,868 $ 11,834,339 CURRENT ASSETS: Cash and Cash Equivalents Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due From Other Governmental Units Prepaid Items Total Current Assets $ 703,224 o 2,443 224,181 33,092 3,094 37,620 1,003,654 PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment Machinery Collection System Total Cost Less: Accumulated Depreciation Net Property, Plant and Equipment 168,111 19,465 15,585,500 15,773,076 (3,390,862) 12,382,214 $ 13,385,868 TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable Accrued Items Deferred Revenue Total Current Liabilities COMPENSATED ABSENCES PAYABLE Total Liabilities FUND EQUITY: Contributed Capital Retained Earnings: Unreserved Total Fund Equity TOTAL LIABILITIES AND FUND EQUITY $ 574,311 8,462 4,352 208,817 19,243 13,362 45,859 874,406 147,813 o 13,897,294 14,045,107 (3,085,174) 10,959,933 $ 11,834,339 66 c C D C C C C ~ ~ ~ C ~ ~ ~ C ~ ~ ~ C CITY OF ANDOVER, MINNESOTA SEWER FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1998 and 1997 1998 1997 Amount Percent Amount Percent OPERATING REVENUES: User Charges $ 912,562 98.3 % $ 850,704 98,5 % Penalties 15,468 1.7 13,202 1.5 Other 100 0.0 160 0.0 Total Operating Revenues 928,130 100.0 864,066 100.0 OPERATING EXPENSES: Personal Services 128,594 13.9 128,423 14.9 Supplies 9,337 1.0 4,797 0.6 Other Services and Charges 49,255 5.3 43,301 4,9 Disposal Charges 542,883 58.5 518,571 60.0 Depreciation 305,688 32,9 300,822 34.8 Total Operating Expenses 1,035,757 111.6 995,914 115.2 OPERATING LOSS (107,627) (11.6) (131,848) (15.2) NON-OPERATING REVENUES: Investment Income 57,078 6.2 24,614 2,8 LOSS BEFORE OPERATING TRANSFER (50,549) (5.4) % (107,234) (12.4)% Operating Transfers In 30,500 0 Operating Transfers Out (75,718) (10,000) Total Operating Transfers (45,218) (10,000) NET LOSS (95,767) (117,234) Add: Depreciation Charged Against Contributed Capital 277,946 277,945 RETAINED EARNINGS - Janumy 1 916,270 755,559 RESIDUAL EQUITY TRANSFER (33,200) 0 RETAINED EARNINGS - December 31 $ 1,065,249 $ 916,270 67 ----T --- --- 1--- ------=----::::::;::1 i- I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies ofthe government and to other government units, on a cost reimbursement basis. CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals for December 31, 1997 Central Totals Equipment Risk December 31 Maintenance Management 1998 1997 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 41,095 $ 97,447 $ 138,542 $ 98,242 Accounts Receivable 404 0 404 173 Interest Receivable 3,267 3,685 6,952 3,191 Inventory 17,316 0 17,316 15,696 Prepaid Items 0 0 0 465 TOTAL ASSETS $ 62,082 $ 101,132 $ 163,214 $ 117,767 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 7,925 $ 270 $ 8,195 $ 3,907 Accrued Items 765 68 833 1,677 Due to Employees 0 4,569 4,569 6,747 Total Liabilities 8,690 4,907 13,597 12,331 FUND EQUITY: Retained Earnings - Umeserved 53,392 96,225 149,617 105,436 TOTAL LIABILITIES AND FUND EQUITY $ 62,082 $ 101,132 $ 163,214 $ 117,767 ---~-- c c c c c c ~ ~ ~ C ~ c c ~ ~ ~ ~ ~ ill! 68 C 1-- - -----:c c=- I I I I I ~ ----;r_ , , CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Central -Equipment Maintenance Risk _Management Totals December 31 1998 1997 $ 359,302 $ 373,283 1,895 0 361,197 373,283 126,921 108,619 128,674 175,613 67,815 57,884 323,410 342,116 37,787 31,167 11 ,394 5,015 OPERATING REVENUES: User Chf1Xj;es to. Other City Funds RefundS] afIRelmb;ursements Total Operating Revenues $.' 307.306 .. 1,895 -~309,201 $ 51,996 o 51,996 ~ j I I OPERATING EXPENSES: Pe:sonal Services Supplies Other Services and Charges Total Operating Expenses 113,138 128,353 29,693 271,184 38,017 13,783 321 38,122 52,226 . OPERATING INCOME (LOSS) , :~ :~O~~-OPERAT~NG REVENUES: ... " Investment Ip.come INCOME BEFORE OPERATING TRANSFERS (230) '4,839 6,555 I ~I -I ~ I 'I ~I JI I ., I ~ 6,325 49,181 36,182 0 0 6,000 6,325 49,181 42,182 94,900 105,436 63,254 (5,000) (5,000) 0 $ 96.225 $ 149,617 $ 105,436 42,856 Operating Transfers In o NET INCOME RETAINED EARNINGS - January 1 RESIDUAL EQUITY TRANSFER , I RETAINEDE~NGS -.pecember31. $~ 42,856 10,536 o 53,392 69 Totals rear Ended December 31 1998 1997 ~ ~ C ~ ~ CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 1998 With Comparative Totals for the Year Ended December 31, 1997 Central Equipment Maintemnce CASH FLOWS FROM OPERATING ACTMTIES: Operating Income (Loss) Adjustments to Reconcile Operaling In.come (Loss) to Net Cash Provided (Used) by Operating Activities: Change in Assets and Liabilities: (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 Net Cash Provided (Used) by Operating Activities $ 38,OI7 Risk Man~gement $ (230) $ 37,787 $. 31,167 .. -- (231 ) 0 (231) --..ii.."'U (1,620) 0 (1,620) 3,965 0 465 465 97 4,659 (371) 4,288 (11 ,346) (641) (2,381) (3,022) 2,231 2,167 (2,287) (120) (4,333) 40,184 (2,517) ~ 37,667 26,834 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers From Other FundS Transfers To Other FundS Net Cash Used by Noncapitlll Financing Activities CASH FLOWS FROM INVESTING ACTMTIES: Investment Income 1,938 Net Increase (Decrease) in Cash and Cash Equivalents 42,122 __(1,027) ~~ 41,095 Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31 -=-- :-,- o o o o (5,000) (5,000) 5,695 (1,822) 99,269 $ 97,447 ,.- ~, Q m o (5,000) --~,OOO) \, 6,0~~. . -. o 6,OO(J 3,199 c c ~ c c c c c c 7,633 40,300 98,242 36,033 62,209 ,,,;'S 1~~42 ....!--.28.242 t , 70 1--- - ----e = ----- I I I I . , I , - I I I I I I I I I ~ I - I - . I " J ~ I - >;. CITY OF ANDOVER, MINNESOTA TRUST AND AGENCY FUNDS Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds. D CITY OF ANDOVER, MINNESOTA TRUST AND AGENCY FUNDS COMBllITNGBALANCESHEET December 31, 1998 With Comparative Totals for December 31, 1997 r-11' . C',; I:' , c ASSETS: Cash and Investments Cash With Trustee Accounts. Receivable Interest Receivable Totals Agency 1998 1997 $ 445,363 $ 445,363 $ 429,042 0 0 307,954 0 0 0 0 0 1,156 $ 445,363 $ 445,363 $ 738,152 ~' ~ ~. \.. LIABILITIES AND FUND BALANCE: Accounts Payable Deposits Payable Due to Employees Total Liabilities $ 4,355 441,008 o 445,363 $ 4,355 441,008 o 445,363 $ 23,212 373,692 307,954 704,858 ~ C ~ TOTAL ASSETS FUND BALA1"IJCE: Unreserved - Designated for Administration o o c 33,294 71 ~..' * ~ C ~ C C C C C TOTAL LIABILITIES AND FUND BAL1\NCE $ 445,363 $ 445,363 $ 738,152 ~=-r--- -- I -~ - - ---------=:;, I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA EXPENDABLE TRUST FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ADMINISTRATIVE TRUST FUND 72 CITY OF ANDOVER, MINNESOTA AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 1998 Balance Balance January 1, December 31, 1998 Additions Deductions 1998 ESCROW FUND ASSETS Cash and Temporary Investments $ 396,904 $ 445,363 $ 396,904 $ 445,363 LIABILITIES Accounts Payable $ 23,212 $ 4,355 $ 23,212 $ 4,355 Deposits Payable 373,692 441,008 373,692 441,008 Total Liabilities $ 396,904 $ 445,363 $ 396,904 $ 445,363 ----i - --- ~ a..' C C C Pc .. C ~ C C C C C C C C ~ ~ C 73 ~ . - ;- ,-=-- ---c----:. _..;," I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP General Fixed Assets are those fixed assets of a governmental jurisdiction which are not accounted for in an Enterprise or Trust Fund. To be classified as a fixed asset in this category, a specific piece of property must possess three attributes: (1) tangible nature; (2) a life longer than the current fiscal year; and (3) a significant value. 74 c c c c c c ~ c c C CI tl tl CI C C C tl C CITY OF ANDOVER, MINNESOTA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS Year Ended December 31,1998 Balance Balance January 1, December 31, 1998 Additions Disposals 1998 GENERAL FIXED ASSETS: Land and Improvements $ 3,970,750 $ 0 $ 0 $ 3,970,750 Buildings and Improvements 2,926,451 189,294 445 3,115,300 Furniture and Equipment 745,265 159,245 25,309 879,201 Machinery and Equipment 3,799,998 67,910 28,000 3,839,908 INVESTMENT IN GENERAL FIXED ASSETS $ 11,442,464 $ 416,449 $ 53,754 $ 11,805,159 --r - I-------=--~c: I I I I I I I I I I I I I I I I I I I 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. CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT AMOUNTS AVAILABLE AND TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG-TERM DEBT December 31 1998 1997 c c c c c c Amount Available in Debt Service Funds $ 7,759,585 19,888,284 $ 27,647,869 Amounts to be Provided GENERAL LONG-TERM DEBT Special Assessments on City Property $ 118,595 179,274 27,350,000 $ 27,647,869 Compensated Absences Payable Bonds and Certificates ofhldebtedness Payable - , $ 5,904,866 25,571,653 $ 31,476,519 ~ $ 145,051 156,468 31,175,000 $ 31,476,519 c c ~ W 75 C' 11'1. II.- C C C C C ~ ~ 1--- I I I ;1 I I I I I I I I I I I I I I I SUPPLEMENTARY INFORMATION .... CITY OF ANDOVER, MINNESOTA SCHEDULE OF TAX CAPACITY RATES AND LEVIES TAXES PAYABLE IN 1998: Net Tax Capacity General Fund Bond Funds Watershed Levy $ 13,887,786 TAXES PAYABLE IN 1997: Net Tax Capacity General Fund Bond Funds Watershed Levy $ 13,342,748 -- --~-- Tax Capacity Rate 19.179 2.426 0.219 21.824 Tax Capacity Rate 16.831 2.744 0.229 19.804 ~. .. Net Levy c c c c $ 2,832,312 358,178 14,090 $ 3,204,580 ,. .. Net Levy c c C CI C! $ 2,371,301 386,570 14,090 $ 2,771,961 Cl C tl C Cl C C C 76 . --------- c-,----- _.............~ I I I I I I I I I I I I I I I I I I I 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, 1998 Accounted Original for in Current Amount Budget Prior Years Year Remaining SOURCES OF FUNDS: Tax Increments $ 11,645,380 $ 2,938,055 $ 282,356 $ 8,424,969 Special Assessments 0 17,097 5,472 (22,569) State Credits 0 57,266 155,927 (213,193) Bond Proceeds 9,380,600 4,107,589 0 5,273,011 Land Sales 0 227,142 0 (227,142) Investment Revenue 97,470 720,109 119,949 (742,588) Miscellaneous 0 0 0 0 Total Sources of Funds 21,123,450 8,067,258 563,704 12,492,488 USES OF FUNDS: Property Acquisition 9,399,040 7,697,225 0 1,701,815 Administrative Costs 730,560 153,326 25,572 551,662 Bond Payments - Principal 6,575,638 1,173,895 157,835 5,243,908 Interest and Other 4,704,115 577,862 235,296 3,890,957 Total Uses of Funds 21,409,353 9,602,308 418,703 11,388,342 DISTRICT BALANCE (285,903) (1,535,050) 145,001 1,104,146 Transfers to Other Funds 0 (9,868) (12,368) 22,236 DISTRICT BALANCE $ (285,903) $(1,544,918) $ 132,633 $ 1,126,382 77 CITY OF ANDOVER, MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS FOR TAX INCREMENT FINANCING DEVELOPMENT DISTRICT 1-2 A TAX INCREMENT FINANCING DISTRICT December 31,1998 Accounted Original for in Current Amount Budget Prior Years Year Remaining SOURCES OF FUNDS: Tax Increments $ 5,125,771 $ 2,971,389 $ 533,475 . $ 1,620,907 Special Assessments 0 0 0 0 State Credits 0 277 344,073 (344,350) Bond Proceeds 12,338,900 7,133,299 0 5,205,601 Land Sales 0 7,959 0 (7,959) Investment Revenue 4,500 231,866 16,234 (243,600) Miscellaneous 0 186,965 23,911 (210,876) Total Sources of Funds 17,469,171 10,531,755 917,693 6,019,723 USES OF FUNDS: Property Acquisition 11,211,335 2,989,282 1,953,075 6,268,978 Administrative Costs 498,785 169,162 56,428 273,195 Bond Payments - Principal 5,314,362 1,431,105 177,165 3,706,092 Interest 3,612,464 1,229,126 221,184 2,162,154 Total Uses of Funds 20,636,946 5,818,675 2,407,852 12,410,419 DISTRICT BALANCE (3,167,775) 4,713,080 (1,490,159) (6,390,696) Transfers to Other Funds 0 0 (27,291) 27,291 DISTRICT BALANCE $ (3,167,775) $ 4,713,080 $(1,517,450) $(6,363,405) ~-- - - u__ -; - ,--c-- -=- -- 78 c c c c c c c c ~ C PI I.i C C C ~ C C C W I I I I I I I I I I I I I I I I I I I STATISTICAL INFORMATION :-r--'- ~ - - c c c c c c p.'. i.l C D C ~I [I tl 1:1 D CI tl CI W : 1 --:---- I I I Licenses Fiscal and Year Taxes Permits I 1989 $ 712,017 $ 259,083 1990 911,255 212,793 I 1991 1,017,774 230,298 1992 1,107,808 430,024 I 1993 1,241,114 470,371 1994 1,472,108 410,733 I 1995 1,810,213 410,212 1996 2,180,470 390,327 I 1997 2,383,965 456,413 1998 2,804,065 694,809 I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FUND REVENUES BY SOURCE Years 1989 Through 1998 Intergovernmental Charges for Fines and Other Revenue Services Forfeits Revenue Total $ 659,330 $ 58,754 $ 51,614 $ 73,909 $ 1,814,707 616,722 75,962 46,650 70,060 1,933,442 640,318 82,604 31,750 71,290 2,074,034 614,266 120,708 39,565 87,370 2,399,741 710,910 152,868 38,178 75,512 2,688,953 745,156 227,960 40,496 91,323 2,987,776 747,627 549,606 46,152 31,986 3,595,796 857,689 447,199 57,125 169,049 4,101,859 988,814 578,221 48,800 258,087 4,714,300 880,697 1,018,441 48,923 358,435 5,805,370 79 CITY OF ANDOVER, MINNESOTA GENERAL FUND EXPENDITURES BY FUNCTION Years 1989 Through 1998 Fiscal Year General Government 1989 $ 64S,521 593,778 1990 1991 579,797 672,936 720,178 804,726 932,460 1,068,585 1992 1993 1994 1995 1996 1997 1,252,047 1998 1,551,410 ---=-----,:.-~- Public Safety $ 705,415 754,914 805,393 908,312 937,371 970,174 1,060,210 1,320,680 1,409,087 1,528,282 Public Works $ 296,275 307,046 374,138 442,176 520,802 625,805 637,551 947,472 1,044,183 1,005,394 Sanitation $ 18,658 29,168 14,831 28,976 36,904 51,522 34,795 60,517 95,632 101,039 Parks and Recreation c ~ W C C C C C C C C C C tl CI C C C C C $ 218,571 261,449 245,097 204,267 232,809 294,158 329,416 455,517 383,059 461,131 -----;-,---- -- I I I Economic I Recycling Development Unallocated $ 20,112 $ 0 $ 97,797 I 39,567 14,289 129,589 46,771 17,447 72,521 I 39,622 17,659 77,060 I 50,461 22,836 53,691 49,574 21,916 86,278 I 58,260 22 93,546 I 55,170 0 154,085 62,281 0 212,503 I 76,773 0 75,950 I I I I I I I I I Total $ 2,002,349 2,129,800 2,155,995 2,391,008 2,575,052 2,904,153 3,146,260 4,062,026 4,458,792 4,799,979 80 CITY OF ANDOVER, MINNESOTA C PROPERTY TAX LEVIES AND COLLECTIONS C Years 1989 Through 1998 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 C 1989 $ 1,006,409 $ 987,289 98.10 % $ 13,439 $ 1,000,728 99.44 % 1990 993,164 967,055 97.37 22,178 989,233 99.60 D 1991 1,079,510 1,054,361 97.67 21,936 1,076,297 99.70 1992 1,482,416 1,440,883 97.20 22,028 1,462,911 98.68 C 1993 1,588,431 1,556,622 98.00 31,536 1,588,158 99.98 1994 1,806,293 1,774,507 98.24 43,566 1,818,073 100.65 C 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 tl 1998 2,698,871 2,632,772 97.55 27,994 2,660,766 98.59 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS CI Years 1989 Through 1998 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 [I 1989 $ 1,178,982 $ 1,097,880 93.12 % $ 57,987 $ 1,155,867 98.04 % 1990 1,620,500 1,509,902 93.18 210,132 1,720,034 106.14 [I 1991 1,450,030 1,249,889 86.20 38,964 1,288,853 88.88 1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34 C 1993 816,859 793,128 97.09 68,760 861,888 105.51 [I 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 CI 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 EI 1998 540,783 458,655 84.81 19,787 478,442 88.47 Note: Tax levy is net of amounts paid by the State of Minnesota through Homestead and Agricultural Credit D Aid (HACA) and Equalization Aid. 81 C ~ --- --- -- ------------ -1------~:---~ ---------- - ------ - I I I I I I I I I I I I I I I I I I I 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 8, 1999 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, 1998, and have issued our report thereon dated March 8, 1999 . 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 and because we were unable to examine evidence regarding year 2000 disclosures, 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 of laws, 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 ofthe Council in the financial statements. Reportable conditions are described on the following page: 82 1. The City does not maintain adequate historical cost fixed asset records. A material weakness 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 eonsideration 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 lll~cessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we do not believe the reportable condition described above is a material weakness. 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 8,1999. This report is intended for the information ofthe council and administration. However, this report is a matter of public record and its distribution is not limited. ~/~'~/~~' KERN, DEWENTER, VIERE, LTD. 83 -~-- - -=-i n-,--_ c c c C CI C C [I CI [I tl [I [i [I [I ~I CI C [I I I I I I I I I I I I I I I I I I I ,I ~ ~ CITY OF ANDOVER, MINNESOTA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA STATUTES March 8,1999 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, 1998, and have issued our report thereon dated March 8, 1999. 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 of the 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 of the 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-~~~/ ~.Jk-. KERN, DEWENTER, VIERE, LTD. 84 85 CI CI Cl tl [I C D tl C [I tl [I tl CI [I [I C CI tl CITY OF ANDOVER, MINNESOTA FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES CURRENT YEAR FINDINGS: None PRIOR YEAR FINDINGS: None ;' .. .- -- I --c--- :::----- - - ,- -'-'~-