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Home My WebLink About1999 CAFR I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA ANOKA COUNTY AUDITED FINANCIAL STATEMENTS As of December 31,1999 c w ~ ~ w W rD W ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS ELECTED OFFICIALS AND ADMINISTRATION ..................................................... INDEPENDENT AUDITORS' REPORT ....................................................................... GENERALPURPOSEFINANCIALSTATEMENTS- Combined Balance Sheet - All Fund Types and Account Groups............................. Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types ................................................................ Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual- General and Special Revenue 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- Budget and Actual. ...................... ............... ........... ...... ........ ................ ........ .... ... Special Revenue Funds - Combining Balance Sheet................ .................................................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...... ...... ... ..................... ...... ........ .............................. ..................... Statements of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - Forestry Fund................................................................................................. LRRWMO Fund ............................................................................................ Drainage and Mapping Fund ......................................................................... EDA General Fund ......................... ........................... ........... ............. ..... .... ... Trail and Transportation Fund ....................................................................... Septic Disposal Fund.... .................... ......... .................................................... Capital Equipment Reserve Fund .................................................................. Developer Sealcoating Fund.................................................. ........................ 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................................................................................... ................ ............ I 2 4 5 6 7 8 9 37 38 46 47 48 49 50 51 52 53 54 55 56 57 59 61 63 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ [ ~ 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 TABLE OF CONTENTS (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - (Continued) Enterprise Funds - Combining Balance Sheet.................................................................................... 65 Combining Statement of Revenues, Expenses and Changes in Retained Eamings ..................................... .................................................. ....... 66 Combining Statement of Cash Flows .................................................................. 67 Comparative Balance Sheet - Water Fund........................................................... 68 Statement of Revenues, Expenses and Changes in Retained Earnings- Water Fund......................................................... ..................... ...... ..... ............ .... 69 Comparative Balance Sheet - Sewer Fund........................................................... 70 Statement of Revenues, Expenses and Changes in Retained Earnings- Sewer Fund ................................................................... .... ........ .......... ............ ... 71 Internal Service Funds - Combining Balance Sheet...................... ...... ....................... ................... .............. 72 Combining Statement of Revenues, Expenses and Changes in Retained Earnings............................................................................................................. 73 Combining Statement of Cash Flows .................................................................. 74 Agency Funds - Statement of Changes in Assets and Liabilities - Agency Funds ........................ 75 General Fixed Assets Account Group - Statement of Changes in General Fixed Assets ................................................... 76 General Long-Term Debt Account Group - Statement of General Long-Term Debt ............................................................... 77 SUPPLEMENTARY INFORMATION - Schedule of Tax Capacity Rates and Levies.............................................................. 78 STATISTICAL INFORMATION - General Fund Revenue by Source.............................................................................. 79 General Fund Expenditures by Function ................................................................... 80 Property Tax and Special Assessment Levies and Collections ................................. 81 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 ~ ~ I' : .. ~ c [ ~ ~ ~ ~ ~ : o c c c c c C t C I I I I I I I I I I I I C I I I I I I Elected Officials I.E. McKelvey Don Jacobson Julie Johnson Mike Knight Ken Orttel Appointed Officials Richard Fursman Jim Dickinson Shirley Clinton Victoria V 01k CITY OF ANDOVER, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 1999 Position Mayor Councilmember Councilmember Councilmember Councilmember City Administrator Finance Director Treasurer Clerk Year Term of Office Expires 2001 2003 2003 2001 2001 Appointed Appointed Appointed Appointed 1 t t ~.' ~ t ~ . ~ c ~ .. ~ ~ c ~ ~ c w /Ill ~ ~ i.i o c ~~======I Kern, DeWenter, Viere, Ltd. _~~V' Certified Public Accountants I I I I I I I I I I I I I I I I I I I INDEPENDENT AUDITORS' REPORT March 31, 2000 Honorable Mayor and City Council City of Andover Andover, Minnesota We have audited the accompanying general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe 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 the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the 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, 1999. In our opinion, except for the effect of such adjustments, if any, that might have been determined to be necessary had we audited the General Fixed Asset Account Group, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Andover, Minnesota, as of December 31,1999, 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 31, 2000 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. 7600 Bass Lake Road, Suite 104 Minneapolis, MN 55428 612-537-3011 . Fax: 612-537-9682 220 Park Avenue South, P.O. Box 1304 St. Cloud, MN 56302 320-251-7010 . Fax: 320-251-1784 2 www.kdv.com t ~ t r iIIl ~ ~ ~ ~ ~ ~ ~ . ~ ~ ~ ~ to ~ ~ w ~ ~ I I I I I I I I I I I I I I I I I I I Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund 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 ofthe City of Andover, Minnesota. Such information, except the information marked "unaudited," on which we express no opinion, 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 ofthe general purpose financial statements, but is presented as additional analytical data. This information is unaudited and we do not express an opinion on it. K.tA-/4- I [)eJVe,a- ~, ~ ...# I i,f-cJ. Kern, DeWenter, Viere, Ltd. St. Cloud, Minnesota 3 Governmental Fund Types Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Proj ects Assets: Cash and Investments (Including Cash Equivalents) $ 1,307,493 $ 1,566,336 $ 9,018,267 $ 3,711,731 Taxes Receivable - Delinquent 169,150 1,032 192,061 0 Special Assessments Receivable - Deferred 46 0 3,275,318 1,811,454 Delinquent 257 0 10,162 58,627 Accounts/Loans Receivable 44,825 2,955 0 111,175 Interest Receivable 11,624 8,830 47,348 19,331 Due from Other Governmental Units 89,715 2,672 15,792 365,661 Due from Other Funds 1,578,600 0 0 283,200 Inventory 47,198 0 0 0 Prepaid Items 2,916 0 0 0 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 $ 3,251,824 $ 1,581,825 $ 12,558,948 $ 6,361,179 LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts Payable $ 162,215 $ 8,350 $ 553 $ 152,227 Accrued Items 119,589 6,486 0 0 Contracts Payable 0 0 0 110,321 Due to Other Governmental Units 22,188 0 0 0 Deposits Payable 0 0 0 0 Due to Employees 0 0 0 0 Developer Advances 0 0 294,869 642,240 Deferred Revenue 169,453 429,821 3,477,541 1,968,160 Due to Other Funds 0 13,000 174,000 2,143,411 Special Assessments on City Property 0 0 0 0 Bonds and Certificates Payable 0 0 0 0 Total Liabilities 473,445 457,657 3,946,963 5,016,359 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 50,114 0 8,785,678 0 Unreserved - Designated 2,304,648 0 0 3,918,919 Undesignated 423,617 1,124,168 (173,693) (2,574,099) Total Equity and Other Credits 2,778,379 1,124,168 8,611,985 1,344,820 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 3,251,824 $ 1,581,825 $ 12,558,948 $ 6,361,179 The notes to the financial statements are an integral part of this statement. ~ ~ ~ [ CITY OF ANDOVER, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1999 r1 lIII ~ li.i ~ ~ ~ ~ ~ ~ " I III ~ ~ ~ C ~ .. ~ C ~,.' ~ ~ ... I I I Proprietary Fiduciary Fund Types Fund Type Account Groups General General Totals Internal Fixed Assets Long-Term (Memorandum Only) I Enterprise Service Agency (Unaudited) Debt 1999 1998 $ 1,681,103 $ 166,669 $ 524,998 $ 0 $ 0 $ 17,976,597 $ 16,238,298 I 0 0 0 0 0 362,243 151,716 8,462 0 0 0 0 5,095,280 8,315,454 I 2,443 0 0 0 0 71,489 72,342 452,965 6,391 0 0 0 618,311 630,980 10,114 720 0 0 0 97,967 695,207 I 1,691 0 0 0 0 475,531 590,277 468,611 0 0 0 0 2,330,411 0 17,583 13,098 0 0 0 77,879 91,830 39,960 0 0 0 0 42,876 49,151 I 26,406,379 0 0 12,787,887 0 39,194,266 34,693,022 0 0 0 0 8,785,678 8,785,678 7,759,585 I 0 0 0 0 21,187,957 21,187,957 19,888,284 $ 29,089,311 $ 186,878 $ 524,998 $ 12,787,887 $ 29,973,635 $ 96,316,485 $ 89,176,146 I $ 15,868 $ 19,385 $ 840 $ 0 $ 0 $ 359,438 $ 270,988 I 49,460 6,243 0 0 227,038 408,816 277,043 0 0 0 0 0 110,321 139,281 0 0 0 0 0 22,188 37,247 0 0 524,158 0 0 524,158 441,008 I 0 0 0 0 0 0 4,569 0 0 0 0 0 937,109 0 8,996 0 0 0 0 6,053,971 9,121,450 0 0 0 0 0 2,330,411 0 I 0 0 0 0 96,597 96,597 118,595 0 0 0 0 29,650,000 29,650,000 27,350,000 74,324 25,628 524,998 0 29,973,635 40,493,009 37,760,181 I 0 0 0 12,787,887 0 12,787,887 11,805,159 26,159,388 0 0 0 0 26,159,388 22,754,745 I 2,855,599 161,250 0 0 0 3,016,849 2,533,047 0 0 0 0 0 8,835,792 7,839,903 I 0 0 0 0 0 6,223,567 5,574,892 0 0 0 0 0 (1,200,007) 908,219 29,014,987 161,250 0 12,787,887 0 55,823,476 51,415,965 I $ 29,089,311 $ 186,878 $ 524,998 $ 12,787,887 $ 29,973,635 $ 96,316,485 $ 89,176,146 I 4 I CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended December 31, 1999 Governmental Fund Types Special Debt General Revenue Service REVENUES: General Property Taxes and Tax Increments $ 3,125,776 $ 13,657 $ 1,188,573 Special Assessments 0 0 3,237,488 Licenses and Permits 609,344 0 0 Intergovernmental 864,985 12,545 119,818 Charges for Services 754,629 17,018 0 Fines 78,396 0 0 Miscellaneous 267,965 156,663 582,669 Total Revenues 5,701,095 199,883 5,128,548 EXPENDITURES: Current - General Government 1,700,086 0 0 Public Safety 1,820,436 0 0 Public Works 1,363,875 85,254 0 Sanitation 119,957 0 0 Parks and Recreation 579,916 0 0 Recycling 88,307 0 0 Economic Development 0 112,480 0 Miscellaneous 97,032 0 0 Capital Outlay 0 259,929 0 Debt Service 0 0 5,152,209 Total Expenditures 5,769,609 457,663 5,152,209 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (68,514) (257,780) (23,661) OTHER FINANCING SOURCES (USES): Operating Transfers In 776,699 418,007 766,583 Operating Transfers Out (378,229) (697,492) (14,438) Bond Proceeds 0 0 123,916 Proceeds from Sale of Property 0 0 0 Total Other Financing Sources (Uses) 398,470 (279,485) 876,061 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES ' 329,956 (537,265) 852,400 FUND BALANCE - January 1 2,448,423 1,661,433 7,759,585 RESIDUAL EQUITY TRANSFER 0 0 0 FUND BALANCE - December 31 $ 2,778,379 $ 1,124,168 $ 8,611,985 The notes to the financial statements are an integral part of this statement. c ~ ~ C C ~ .. ~ ~ ~ c ~ ~ ~ ~ ~ C ~ ~ ~ : ~ a Totals C p tal (Memorandum Only) Projects 1999 1998 0 $ 0 $ 4,328,006 $ 3,988,040 953,671 4,191,159 4,660,199 0 609,344 694,809 115,623 1,112,971 2,051,799 0 771,647 1,055,771 0 78,396 48,923 733,449 1,740,746 3,456,984 1,802,743 12,832,269 15,956,525 0 1,700,086 1,551,410 0 1,820,436 1,528,282 0 1,449,129 1,076,607 0 1 19,957 101,039 0 579,916 461,131 0 88,307 76,773 0 112,480 102,062 0 97,032 76,224 8,557,542 8,817,471 7,314,121 0 5,152,209 6,122,591 8,557, 542 19, 937,023 18,410,240 (6,754,799) (7,104,754) (2,453,715) 14,493 1,975,782 3,157,200 (719,278) (1,809,437) (2,790,982) 5,889,014 6,012,930 746,701 461,817 461,817 2,303 5,646,046 6, 41,092 1,115,222 (1,108,753) (463,662) (1,338,493) 2,453,573 14, 323,014 15,549,607 0 0 111,900 $ 1,344,820 $ 13,859,352 $ 14,323,014 5 '" CITY OF ANDOVER, MINNESOTA ~ COMBINED STATEMENT OF REVENUES, EXPENDITURES AND ~ CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended December 31, 1999 ~ General Fund C Over (Under) ~ Budget Actual Budget REVENUES: General Property Taxes and $ 3,298,518 $ 3,125,776 $ (172,742) [ and Tax Increments Special Assessments 0 0 0 Licenses and Permits 456,820 609,344 152,524 Intergovernmental 961,917 864,985 (96,932) [ Charges for Services 599,531 754,629 155,098 Fines 43,500 78,396 34,896 Miscellaneous 201,400 267,965 66,565 [ Total Revenues 5,561,686 5,701,095 139,409 EXPENDITURES: [ Current - General Government 1,800,324 1,700,086 (100,238) Public Safety 2,012,834 1,820,436 (192,398) [ Public Works 1,708,934 1,363,875 (345,059) Sanitation 189,347 119,957 (69,390) Parks and Recreation 585,875 579,916 (5,959) Recycling 94,999 88,307 (6,692) ~ Economic Development 0 0 0 Miscellaneous 118,796 97,032 (21,764) Capital Outlay 0 0 0 C Debt Service 0 0 0 Total Expenditures 6,511,109 5,769,609 (741,500) EXCESS OF REVENUES OVER (UNDER) ~ EXPENDITURES (949,423) (68,514) 880,909 OTHER FINANCING SOURCES (USES): [ Operating Transfers In 949,423 776,699 (172,724) Operating Transfers Out 0 (378,229) (378,229) Bond Proceeds 0 0 0 [ Proceeds from Sale of Property 0 0 0 Total Other Financing Sources (Uses) 949,423 398,470 (550,953) EXCESS OF REVENUES AND OTHER ~ SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 329,956 $ 329,956 ~ FUND BALANCE - January I 2,448,423 FUND BALANCE - December 31 $ 2,778,379 ~ . , The notes to the [mancial statements are an integral part of this statement. ~ I I I a Totals Special Revenue Funds (Memorandum Only) Over Over I (Under) (Under) Budget Actual Budget Budget Actual Budget I $ 16,133 $ 13,657 $ (2,476) $ 3,314,651 $ 3,139,433 $ (175,218) 0 0 0 0 0 0 I 0 0 0 456,820 609,344 152,524 6,867 12,545 5,678 968,784 877,530 (91,254) 61,550 17,018 (44,532) 661,081 771,647 110,566 0 0 0 43,500 78,396 34,896 I 90,498 156,663 66,165 291,898 424,628 132,730 175,048 199,883 24,835 5,736,734 5,900,978 164,244 I 0 0 0 1,800,324 1,700,086 (100,238) I 0 0 0 2,012,834 1,820,436 (192,398) 91,722 85,254 (6,468) 1,800,656 1,449,129 (351,527) 0 0 0 189,347 119,957 (69,390) 0 0 0 585,875 579,916 (5,959) I 0 0 0 94,999 88,307 (6,692) 118,326 112,480 (5,846) 118,326 112,480 (5,846) 0 0 0 118,796 97,032 (21,764) I 0 259,929 259,929 0 259,929 259,929 0 0 0 0 0 0 210,048 457,663 247,615 6,721,157 6,227,272 (493,885) I (35,000) (257,780) (222,780) (984,423) (326,294) 658,129 I 320,479 418,007 1,269,902 1,194,706 (320,479) (697,492) (320,479) (1,075,721) I 0 0 0 0 35,000 0 35,000 0 35,000 (279,485) 984,423 118,985 I I $ 0 (537,265) $ (537,265) $ 0 (207,309) $ (207,309) 1,661,433 4,109,856 I $ l,124,168 $ 3,902,547 6 I ~ CITY OF ANDOVER, MINNESOTA ~ COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES ~ IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 ~ ~ Totals Internal (Memorandum Only) C Enterprise Service 1999 1998 OPERATING REVENUES: User Charges $ 1,720,957 $ 373,369 $ 2,094,326 $ 2,097,551 ~ Meters 54,950 0 54,950 65,122 " .. Permit Fees 18,600 0 18,600 18,975 Penalties 25,460 0 25,460 29,694 .. Other 1,959 645 2,604 6,566 t' Total Operating Revenues 1,821,926 374,014 2,195,940 2,217,908 ~ OPERATING EXPENSES: [ Personal Services 487,143 137,924 625,067 554,433 Supplies 65,455 137,667 203,122 194,409 Other Services and Charges 101,863 90,632 192,495 191,806 ~ Disposal Charges 456,029 0 456,029 542,883 ~ Depreciation 674,609 0 674,609 617,789 Total Operating Expenses 1,785,099 366,223 2,151,322 2,101,320 ~ I. OPERATING INCOME 36,827 7,791 44,618 116,588 NON-OPERATING REVENUES: ~ Investment Income 62,115 4,254 66,369 150,691 INCOME BEFORE OPERATING 1'1 if I ; , TRANSFERS 98,942 12,045 110,987 267,279 .. Operating Transfer In 0 0 30,500 C Operating Transfer Out (412) (166,345) (396,718) Total Operating Transfers (412) (166,345) (366,218) NET INCOME (LOSS) (66,991) 11,633 (55,358) (98,939) ~ Add: Depreciation Charged Against ~ Contributed Capital 539,160 0 539,160 475,181 RETAINED EARNINGS - January 1 2,383,430 149,617 2,533,047 2,268,705 ~ RESIDUAL EQUITY TRANSFER 0 0 0 (111,900) ~ RETAINED EARNINGS - December 31 $ 2,855,599 $ 161,250 $ 3,016,849 $ 2,533,047 [ .. i, .. /Ill The notes to the financial statements are an integral part of this statement. ~ 7 ~ .. I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF CASH FLOWS- ALL PROPRIETARY FUND TYPES Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31,1998 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation Change in Current Assets and Liabilities: (Increase) Decrease in Special Assessments (Increase) Decrease in Accounts Receivable Decrease in Due From Other Governmental Units (Increase) Decrease in Inventory (Increase) Decrease in Prepaid Items Increase (Decrease) in Accounts Payable Increase (Decrease) in Accrued Items (Decrease) in Due to Other Governmental Units Increase (Decrease) in Deferred Revenue Total Adjustments Net Cash Provided by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Advances to Other Funds Transfers From Other Funds Transfers To Other Funds Net Cash Used by Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Fixed Assets CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - January I CASH AND CASH EQUIVALENTS - December 31 Totals Internal (Memorandum Only) Enterprise Service 1999 1998 $ 36,827 $ 7,791 $ 44,618 $ 116,588 674,609 0 674,609 617,789 (8,462) (8,462) 10,371 9,751 (5,987) 3,764 (64,849) 1,403 0 1,403 10,268 (3,418) 4,218 800 (3,095) (1,838) 0 (1,838) 8,302 (3,140) 11,190 8,050 (164) 25,746 841 26,587 (9,890) (484) 0 (484) (150) 8,462 0 8,462 (1,498) 702,629 10,262 712,891 567,084 739,456 18,053 757,509 683,672 (468,611) o (165,933) (634,544) o 30,500 (508,618) (478,118) o o ~ 412~ 412 (249,322) (249,322) (120,501) o 133,758 10,486 118,949 144,244 (10,652) 1,691,755 $ 1,681,103 204,002 1,626,295 $ 1.830,297 28,127 138,542 $ 166,669 17,475 1,830,297 $ 1,847,772 The notes to the fmancial statements are an integral part of this statement. 8 r- .. CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 c ~ -c C t NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Accounting Policies ofthe Citv The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. With respect to proprietary activities, the City has applied all applicable Governmental Accounting Statement Board (GASB) pronouncements as well as Financial Accounting Standards Board (F ASB) pronouncements and Accounting Principles Board (APB) Opinions issued on or before November 30, 1989 unless those pronouncements conflict with or contradict GASB pronouncements. In accordance with GASB Statement No. 20, the City has elected to apply only GASB pronouncements issued after November 30, 1989. ~ III B. Financial Reporting Entity r .. In accordance with GASB Statement No. 14, The Financial Reporting Entity, the financial statements present the City and its component units. The City includes all funds, account groups, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials ofthe 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. c c ~ ~ C 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 ifit were part of the primary government because its governing body is substantively the same as the governing body ofthe primary government. .. ~ ~ r .. ~ .. C 9 ~ 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 December 31, 1999 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. S?ecial Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Projects 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 marmer similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that the periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City maintains Water and Sewer Enterprise Funds. 10 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 ~.' .. ~ ~ C C C C ~ W.j C ~ ~ C C C NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Accounting (Continued) Internal Service Funds - Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City. The City's Central Equipment Maintenance Fund is used to account for the City's Equipment Operations to all City departments on a cost reimbursement basis. Fiduciary Funds Expendable Trust Funds are used to account for assets held by the government in a trustee capacity. Both principal and earnings may be spent for the trust's intended purpose. 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 current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of available spendable resources. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets--which are certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems--are not capitalized by the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at their historical cost or estimated historical cost if actual cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. ~ iIj c c ~.' ~ ~" .. c 11 ~ 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 December3l, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Measurement Focus. Fixed Assets and Long-Term Liabilities (Continued) Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Because oftheir spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. All proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with the fund's activity are included on the balance sheet. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against operations. Accumulated depreciation is reported on the proprietary fund balance sheet. Depreciation has been provided over the assets' estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings and Improvements Equipment 5-50 Years 5-20 Years E. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting, in which revenues are recognized when they become measurable and available as net current assets. 12 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 c c c ,., ~ [ c NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Basis of Accounting (Continued) The City considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Major revenues that are susceptible to accrual include property taxes, intergovernmental revenues, charges for services, and interest on investments. Major revenues that are not susceptible to accrual include licenses and permits, fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. ~ .. 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. ~ .. ~ .. C C C C All proprietary funds are accounted for using the accrual basis of accounting; revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility service receivables are recorded at year end. The City reports deferred revenue on the combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, or when grant monies are received prior to the incurrence of qualifYing expenditures. In subsequent years, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and the revenue is recognized. F. 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. ~ 11II 13 ~ C C C C 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. 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 December31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Budgetary Accounting (Continued) The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through City Council action. 4. Expenditures may legally exceed budgeted appropriations at the fund level through City Council action. Also, the City Council may authorize transfers of budgeted amounts between departments within any fund. 5. Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and debt service funds. Budgetary control for capital projects funds is accomplished through the use 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 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 c C ~.I i.j NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) r,' .. H. Cash and Investments (Including Cash Equivalents) (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 31,1999. 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. 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 C C C C C r- l.- e c ~ ~ For purposes of the Statement of Cash Flows of proprietary fund types, cash equivalents are defined as short-term, highly liquid investments that are both: 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. I. 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). K. Inventories The inventories of the General Fund and the Proprietary Funds are stated at cost on the first- in, first-out basis. The General Fund accounts for inventory using the consumption method. General Fund inventory consists of signs and miscellaneous other items. Proprietary Funds inventory consists of water meters, miscellaneous parts and other items. L. Deferred Revenue Deferred revenue represents delinquent taxes, deferred and delinquent assessments, loans receivable and other unearned grants in all funds. This revenue is deferred until it is measurable and available as net current assets. c 15 ~ ... 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 December 31, 1999 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. Propertv 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 1. 16 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued). N. Revenues. Expenditures and Expenses (Continued) 2. Property 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 of taxes 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. Iftaxes due May 15 are not paid on time, a penalty of3% 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-homesteaded property until January 1. If the taxes are not paid by January I, further penalties are added. Penalties and interest apply to both taxes and special assessments. There are some exceptions to the above penalties, but they are not material. Within 30 days after the tax settlement date, the County Treasurer is required to pay 70% of the estimated collections of taxes and special assessments to the City Treasurer. The County Treasurer must pay the balance to the City Treasurer within 60 days after settlement, provided that after 45 days interest accrues at the rate of 8% per annum. 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. c c .. ~ ,.. . ~ ~ C. , , , , C C C o c c c c ~.l ~ c ~ iII/ ~ III 17 ~ 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 December 31, 1999 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (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. NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNT ABILITY A. Fund Deficits The following funds had deficit fund balances at December 31, 1999: Special Revenue Funds - Oak Wilt Suppression $ 12,835 18 A. Fund Deficits (Continued) Debt Service Funds - G.O. Improvement Bonds of 1993A TIF Bonds of 1999 Capital Projects Funds- Water Trunk Project Storm Sewer Project Unfinanced Projects State Aid Revolving Projects Old City Hall Remodel Kelsey Road - Lake Park Project $ 138,847 34,846 53,530 104,362 1,310,334 1,004,229 6,531 95,113 c c [ [ [ C CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY (Continued) !!II ~ $ 16,772 o 10,200 $ 23,206 256,081 19,273 c c [ [ [ [ [ C ~ C These deficits will be eliminated by transfers from other funds, collections of property tax levies or proceeds from bond issues. B. Expenditures in Excess of Appropriations Expenditures exceeded appropriations in the following funds for the year ended December 31,1999: Special Revenue Fund: Forestry Capital Equipment Reserve Oak Wilt Suppression Appropriations Expenditures NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Assets 1. Cash and Investments (Including Cash Equivalents) Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and investments (including cash equivalents)." For purposes of identifYing risk of investing public funds, the balances and related restrictions are summarized below: ~ III 19 ~ w. 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 December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 1. Cash and Investments (Including Cash Equivalents) (Continued) a. Deposits - Minnesota Statutes require that all deposits with financial institutions must ?e collateralized in an amount equal to 110% of deposits in excess of FDIC msurance. Category I 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 I 2 3 Bank Balance Carrying Amount Bank Accounts $ 140,000 $ 0 $ 0 $ 140,000 $ 121,747 b. Investments - Minnesota Statutes authorize the City to invest in obligations of the u.s. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the forementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercial paper ofthe 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 December 31, 1999 ~ ~ [ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) ,. . A. Assets (Continued) Fair Value and Carrying Amount $ 1,204,735 835,580 7,476,199 7,337,924 16,854,438 784,373 215,389 121,747 650 ~ C C C ~ ~ ~ . ~ . 1. Cash and Investments (Including Cash Equivalents) (Continued) b. Investments - (Continued) Category 1 2 3 Negotiable CD's $ 0 $ 0 State and Local Government Securities 0 0 u.s. Government Securities 0 0 Commercial Paper 0 0 $ 1,204,735 835,580 7,476,199 7,337,924 $ 16,854,438 $ 0 $ 0 Total Investments Minnesota Municipal Investment Pool Open End Mutual Fund Total Deposits (Note 3 A. La.) Petty Cash Total Cash and Investments (Including Cash Equivalents) ~ .. $ 17,976,597 [ C C C During the year ended December 31, 1999, the City had investment revenue of $ 869,024. 2. Flexible Benefit Plan The City offers a flexible benefit plan. The plan is a "cafeteria plan" under ~ 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. 21 III ~ ~ 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 December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 2. Flexible Benefit Plan (Continued) 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 ofthe 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. 3. Fixed Assets A summary of changes in the General Fixed Assets Account Group follows: Balance Balance 1-1-99 Additions Disposals 12-31-99 Land $ 3,970,750 $ 0 $ 0 $ 3,970,750 Buildings and Improvements 3,115,300 79,150 0 3,194,450 Furniture and Equipment 879,201 85,382 0 964,583 Machinery and Equipment 3,839,908 818,196 0 4,658,104 Total General Fixed Assets $ 11,805,159 $ 982,728 $ 0 $ 12,787,887 22 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 c ~ [ [ [ C C C C t [ [ [ [ C NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 3. Fixed Assets (Continued) A summary of proprietary fund type fixed assets at December 31,1999 is as follows: Water Sewer Total Furniture and Equipment $ 751,021 $ 168,111 $ 919,132 Machinery 992,071 159,465 1,151,536 Collection and Distribution System 12,976,808 17,934,977 30,911,785 Accumulated Depreciation (2,846,785) (3,729,289) (6,576,074) Net Fixed Assets $ 11,873,115 $ 14,533,264 $ 26,406,379 4. Loans Receivable As part of a development agreement entered into with a private developer in May, 1989, the City received a promissory note for $ 243,520. The note is to reimburse the City for the fiscal disparities' contributions the City lost due to the establishment of a tax increment financing district for the development project. The note bears an interest rate of 5.50% and calls for 180 equal monthly payments to be made to the City through August, 2003. At December 31, 1999, the remaining principal due of$ 98,079 is offset by deferred revenue as it is not available to finance current activities. B. Liabilities 1. Defined Benefit Pension Plans - Statewide a. Plan Description All full-time and certain part-time employees 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. r III c ~ II 23 t 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 Decembed 1, 1999 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) 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 I) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 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 annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. 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. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree--no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualifY for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. 24 c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 ~ ill 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. c c c ~ ~ 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) 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 Policv 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, of their annual covered salary. PEPFF members are required to contribute 6.20 percent oftheir 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 9.30 percent for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ended December 31,1999,1998, and 1997 were $ 101,966, $ 89,513, and $ 67,050, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ended December 31,1999, 1998, and 1997 were $ 5,773, $ 5,950, and $ 5,453, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. ~ ~, IIJ c ~ ~ ~ ... c "I ~ ~ o 25 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 December 31, 1999 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 ofthe City's volunteer fire department are members of the Andover Fire Fighters' Relief Association. The Association is a single-employer defined contribution plan that was established in 1979 and operates under the provisions of Minnesota Statutes ~ 69 and 424A, as amended. It is governed by a Board consisting of six officers and trustees elected by the members of the Association for three-year terms. The City Mayor, City Clerk, and Fire Chief are ex -officio members of the Board of Trustees. The payroll for City employees who are members of the Association for the year ended December 31, 1999 was $ 142,718. The City's total payroll was $ 2,023,830. For financial reporting purposes, the Association's financial statements are not included in the City of Andover's financial statements because the Association is not a component unit of the City. b. Pension Benefits Minnesota Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A firefighter who completes at least 20 years as an active member of the municipal fire department to which the Association is associated, and has been a member of the Relief Association for at least 10 years prior to retirement after age 50, is entitled to a service pension upon retirement. The service pension prescribed by the Association's bylaws is a lump sum settlement equal to the amount in the individual member's account at the time of retirement. The individual member accounts are credited with an equal share of: any fire state-aid received by the Association, any municipal contributions to the Association, and any other assets ofthe Association's Special Pension Fund. The bylaws ofthe Association also provide for a reduced service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60% ofthe 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 December 31, 1999 "" ~ .. iI. NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) ~ .. B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association (Continued) .. ~ b. Pension Benefits (Continued) c A member of the Association who has completed 20 or more years of active service with the fire department prior to reaching age 50, has the right to retire from the department without forfeiting the right to a service pension. The member shall be placed on the deferred pension roll. Upon reaching age 50, the member may apply for the standard service pension as described above. The Association shall pay interest on the deferred service pension during the period of deferral. The interest rate will be compounded annually, at the rate actually earned on the assets of the Special Pension Fund, not to exceed 5% per year. ~ I.j ~ ~ An active member of the Association who becomes disabled to the extent that a physician shall certify that such disability will permanently prevent the member from performing his duties in the Andover Fire Department, is entitled to a disability pension equal to the balance in the member's account after 100 days of disability. If a member who has received such a disability pension should subsequently recover and return to active duty in the Andover Fire Department, any amount paid to him as a disability pension shall be deducted from his service pension accrued at the time of such disability. ~ l.i ~ ~ Upon the death of any member of the Association who is in good standing at the time of death, the Association shall pay the member's spouse, children, or estate the balance of the member's account at the date of payment. ~ l.i The City of Andover has the power to levy property taxes at the direction and for the benefit ofthe Association, and passes through state aids allocated to the plan, in accordance with enabling state statutes. ~ III ~ ~ c. Contributions Required and Contributions Made The City's contributions under the plan, determined by the Association's Board of Trustees and ratified by the City Council in accordance with enabling state statutes is $ 750 per member per year. In 1998, the City contributed $ 98,999 to the Association, consisting of$ 60,559 state aid and $ 38,440 fulfilling the City's $ 750 per member contribution obligation for the year ended December 31, 1999. The City's contribution represents 26.9% of covered payroll. .. i! I iii ~ .. ~ Ii.j ~ ~ 27 ~ I. ' * I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 3. Deferred Revenues Deferred revenues at December 31, 1999 are summarized below: Special Debt Capital General Revenue Service Projects Enterprise Total Taxes Receivable - Delinquent $ 169,150 $ 1,032 $ 192,061 $ 0 $ 0 $ 362,243 Special Assessments Receivable - Deferred 46 0 3,275,318 1,811,454 0 5,086,818 Delinquent 257 0 10,162 58,627 0 69,046 Loans Receivable 0 0 0 98,079 0 98,079 Deposits and Other 0 428,789 0 0 8,996 437,785 Total $ 169,453 $ 429,821 $ 3,477,541 $ 1,968,160 $ 8,996 $ 6,053,971 4. Long-Term Debt The following is a summary oflong-term debt transactions of the City for the year ended December 31,1999: Balance Balance January 1, 1999 Additions Deletions December 31,1999 General Obligation Bonds $ 760,000 $ 0 $ 255,000 $ 505,000 General Obligation Revenue Bonds 2,315,000 0 40,000 2,275,000 Special Assessment Bonds 15,425,000 3,525,000 2,940,000 16,010,000 Tax Increment Bonds 8,495,000 1,500,000 360,000 9,635,000 Certificates of Indebtedness 355,000 1,050,000 180,000 1,225,000 Assessments on City Property 118,595 0 21,998 96,597 Compensated Absences Payable 179,274 47,764 0 227,038 $ 27,647,869 $ 6,122,764 $ 3,796,998 $ 29,973,635 28 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) Bonds payable at December 31, 1999 are comprised of the following issues: Ge eral Obligation Bonds: G.O. Refunding Bonds of 1998 Ge eral Obligation Bonds: Public Project Revenue Bonds of1997 Sp cial Assessment Bonds: G.O. Improvement Bonds of Series 1977 A G.O. Improvement Bonds of Series 1993A G.O. Improvement Bonds of Series 1994C G.O. Improvement Bonds of 1995A Refunding Bonds of Series 1995B G.O. Crossover Refunding Bond of 1996 G.O. Improvement Bonds of 1996 G.O. Improvement Bonds of Series 1997 A G.O. Refunding Bonds of 1997 G.O. Improvement Bonds of Series 1997B G.O. Improvement Bonds of 1999 Total Special Assessment Bonds Maturity Interest Rate Issue Date Date Original Issue Retired 3.60-3.75% 12-01-98 07-01-01 $ 760,000 $ 255,000 4.50-5.90% 09-01-97 12-01-16 2,350,000 75,000 5.00% 02-01-77 01-01-06 1,215,000 810,000 4.00-4.75% 08-01-93 08-01-03 3,650,000 2,190,000 5.05-5.75% 10-01-94 02-01-06 1,140,000 335,000 4.85-5.30% 07-01-95 02-01-06 2,605,000 650,000 4.65-4.85% 07-01-95 08-01-00 825,000 705,000 4.15-4.50% 06-01-96 08-01-01 1,220,000 620,000 4.15-5.00% 06-01-96 08-01-06 600,000 160,000 4.20-4.80% 05-01-97 12-01-02 3,120,000 1,300,000 4.20-4.50% 06-01-97 08-01-00 630,000 420,000 3.90-4.70% 07-01-97 12-01-05 6,315,000 1,645,000 3.75-4.40% 10-01-99 12-01-04 3,525,000 0 24,845,000 8,835,000 "'" IilII ... ~ .. \ .. !Ill I: .. ~ ~ ~ Outstanding ~ $ 505,00~ ~ 2,275,000 ~ 405,00~ 1,460,000 805,00~ 1,955,00<r 120,00dll 600,00~ 440,00tJII 1,820,00~ 210,00~ 4,670,00 3 525 00 ' i , , 16,010,00~ ~ ~ ~ 29 ~ I I I I I I I I I I Certificates ofIndebtedness: I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) Tax Increment Bonds: G.O. Tax Increment Bonds of Series 1993B G.O. Tax Increment Refunding Bonds of Series 1994B G.O. Tax Increment Bonds of Series 1995D G.O. Tax Increment Bonds of 1996 G.O. Tax Increment Bonds of 1999 Total Tax Increment Bonds 1994A Certificate of Indebtedness 1995C Certificate ofIndebtedness 1999 G.O. Equipment Certificate Total Certificates of Indebtedness IAssessments on City Property Compensated Absences Payable I I I I I I TOTAL Maturity Original Interest Rate Issue Date Date Issue Retired Outstanding 4.00-5.00% 08-01-93 08-01-03 $ 520,000 $ 300,000 $ 220,000 6.97-7.87% 05-01-94 05-01-04 885,000 450,000 435,000 4.50-5.60% 10-01-95 02-01-13 6,055,000 455,000 5,600,000 4.75-5.40% 06-01-96 08-01-12 2,055,000 175,000 1,880,000 4.00-5.00% 06-01-99 12-01-12 1,500,000 0 1,500,000 11,015,000 1,380,000 9,635,000 4.05% 4.65-4.85% 3.70-4.00% 150,000 150,000 0 515,000 340,000 175,000 1,050,000 0 1,050,000 1,715,000 490,000 1,225,000 338,174 241,577 96,597 227,038 0 227,038 $ 41,250,212 $ 11,276,577 $ 29,973,635 03-01-94 06-01-95 06-01-99 03-01-99 02-01-00 02-01-04 6.25-10.70% N/A 2001 N/A N/A N/A 30 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 ~.'. ~ C ~ I; ! III NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) c B. Liabilities (Continued) 4. Lonf?:- Term Debt (Continued) ~ " .. The annual requirements to amortize all bonded debt outstanding as of December 31, 1999 including interest payments of$ 8,692,684 are: ~ ... General General Obligation Special Tax Certificates Year Ending Obligation Revenue Assessment Increment of December 31 Bonds Bonds Bonds Bonds Indebtedness Total 2000 $ 283,805 $ 173,165 $ 4,321,651 $ 883,855 $ 227,019 $ 5,889,495 2001 249,000 181,005 3,822,061 942,470 261,788 5,456,324 2002 0 183,310 3,369,326 981,933 277,813 4,812,382 2003 0 190,310 2,647,863 993,523 287,600 4,119,296 2004 0 196,740 2,209,985 958,026 311,100 3,675,851 Thereafter 0 2,835,195 1,892,519 9,661,622 0 14,389,336 $ 532,805 $ 3,759,725 $ 18,263,405 $ 14,421,429 $ 1,365,320 $ 38,342,684 5. Conduit Debt Obligations ~ .. ~ ~ ~ ~ ~ Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private- sector entities for projects deemed to be in the public interest. Although these bonds bear the name ofthe City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements ofthe City. ~ iii As of December 31, 1999, the following revenue bonds were outstanding: ~ C Date of Original Project Issue Issue Retired Downtown Center 07-15-97 $ 5,645,000 $ 625,000 Downtown Center 07-15-97 1,250,000 155,000 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 $ 780,000 Outstanding December 31, 1999 ~ $ 5,020,000 1,095,000 13,980,000 ~ ~ ~ ,; I 720,000 III $ 20,815,000 ~ 31 ~ ~ 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 December 31, 1999 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: I. 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, 1999 is as follows: Enterprise Funds Water Sewer Fund Fund Total Contributed Capital - January I, 1999 $ 10,447,904 $ 12,306,841 $ 22,754,745 Add: 1999 Contributions 1,594,326 2,349,477 3,943,803 Less: Depreciation on Contributed Assets (227,450) (311,710) (539,160) Contributed Capital- December 31, 1999 $ 11,814,780 $ 14,344,608 $ 26,159,388 32 ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 ~ ~ Fund balances are classified as follows to reflect limitations and restrictions ofthe respective funds. ~. ~ ~ ~ ~.' ~ ~ ~. ~ m ~ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Equity (Continued) 3. Fund Balance Special Debt Capital General Revenue Service Projects Total Reserved for: Inventory $ 47,198 $ 0 $ 0 $ 0 $ 47,198 Prepaid Items 2,916 0 0 0 2,916 Debt Service 0 0 8,785,678 0 8,785,678 Total Reserved Fund Balance 50,114 0 8,785,678 0 8,835,792 Unreserved: Designated for Working Capital 2,304,648 0 0 0 2,304,648 Designated for Projects 0 0 0 2,998,212 2,998,212 Designated for Equipment 0 0 0 920,707 920,707 Total Unreserved - Designated Fund Balance 2,304,648 0 0 3,918,919 6,223,567 Undesignated 423,617 1,124,168 (173,693) (2,574,099) (1,200,007) Total Fund Balance $ 2,778,379 $ 1,124,168 $ 8,611,985 $ 1,344,820 $ 13,859,352 4. Retained Earnings Retained earnings balances are unreserved at December 31, 1999. m ~ ~ ~ ~ ~ ~ ~ ~ m ll.j 33 ~ 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 December 31, 1999 NOTE 4 - SEGMENT INFORMATION The City maintains Water and Sewer Enterprise Funds. Segment information for the year ended December 31,1999 is as follows: Water Sewer Total Operating Revenues $ 840,015 $ 981,911 $ 1,821,926 Operating Expenses 811,702 973,397 1,785,099 Depreciation Expense 336,183 338,426 674,609 Operating Income 28,313 8,514 36,827 Operating Transfers, Net (105,346) (60,587) (165,933) Net Income (Loss) (44,183) (22,808) (66,991) Contributed Capital 11,814,780 14,344,608 26,159,388 Net Working Capital 1,461,812 1,179,571 2,641,383 Fixed Asset Purchases 109,323 139,999 249,322 Total Assets 13,360,343 15,728,968 29,089,311 Total Equity 13,316,228 15,698,759 29,014,987 NOTE 5 - TAX INCREMENT DISTRICTS The City of Andover is the administering authority for the following tax increment finance districts: 1. Name of District: Andover Redevelopment District 1-1 Type of District: Redevelopment Authorizing Law: Minnesota Statutes Section 472 Established: 1986 Duration of District: Through 2012 Original Net Tax Capacity $ 28,525 Current Net Tax Capacity 278,821 Captured Net Tax Capacity - Retained by City $ 250,296 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 $ 63,353 Current Net Tax Capacity 602,096 Captured Net Tax Capacity - Retained by City $ 538,743 34 ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1999 "III ~ ~ .. NOTE 5 - TAX INCREMENT DISTRICTS (Continued) ~ , I II Total District 1 Bonds Issued $ 11,015,000 Amounts Redeemed (1,380,000) Bonds Outstanding at December 31, 1999 $ 9,635,000 3. Name of District: Tax Increment Financing District No. 1-3 (The Farmstead Project) Type of District: Redevelopment Authorizing Law: Minnesota Statutes Section 469 Established: 1997 Duration of District: Through 2024 Original Net Tax Capacity $ 10,704 Current Net Tax Capacity 158,283 Captured Net Tax Capacity - Retained by City $ 147,579 NOTE 6 - RISK MANAGEMENT r!Ii WI ~ III "III ~ ~ , I .. ~ ~ 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. c The City also carries commercial insurance for certain other risks of loss, including employee health insurance. Settled claims resulting from these risk have not exceeded commercial insurance coverage in any of the past fiscal years. c ~ ~ ~ ~ . ~ UJ ~ .. 35 ~ ~ 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 December 31, 1999 NOTE 7 - COMMITMENTS The City has several commitments outstanding at year end for various construction projects. They are summarized on the next page: Expended Proj ect Through Remaining Project Authorization 12-31-99 Commitment #94-33B - Commercial Blvd. Ext. Part I $ 167,452 $ 145,904 $ 21,548 #94-33C - Commercial Blvd. Ext. Part 2 177,195 176,009 1,186 #97-49 - Chesterton Commons 2nd #98-09 - Cambridge Estates* 1,021,580 862,561 159,019 #98-11A - Jay St. NW - Irrigation and Landscaping 303,465 0 303,465 #98-17 - Reconstruction of Bunker Lk. Blvd. 1,231,900 1,191,611 40,289 #98-22A - Well #7 374,400 0 374,400 #98-27 - Fox Hollow 1,023,639 893,097 130,542 #98-28 - Shadowbrook 5th Addition 362,556 318,014 44,542 #98-30 - Chesterton Commons 4th Addition 192,684 172,359 20,325 #98-33 - Cambridge Est. 2nd; #98-34 - Chesterton Commons 3rd; #98-36 - Chesterton Cmn. No. 1,116,216 943,332 172,884 #99-18 - Shadowbrook 6th Addition 288,117 0 288,117 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 - CONTINGENT LIABILITIES A. Claims and Litigation The City of Andover, in connection with the normal conduct of its affairs, is involved in various claims, judgements, and litigation. The City attorney estimates that one lawsuit may result in a claim against the City of approximately $ 47,000. All other claims against the City resulting from such litigation would not materially effect the financial condition of the City. B. Potential Arbitrage Rebate In 2000, the City will perform arbitrage rebate calculations on all bond issues that are subject to rebate requirements. At the present time, the amount of liability to the federal government for rebatable arbitrage is not determinable. 36 ~ lI.j c /Ill ~ ~ III c ~ \j.J ~ ~ ~ III c ~ ~ ~ c ~ . ~ ~ ~ ~ ~ ~ ~ I I I I I I I I I I I I I I I I I I I COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS ~ ~ CITY OF ANDOVER, MINNESOTA GENERAL FUND ~.' ~ ~ c The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities ofthe City such as general government, public safety, public works and parks and recreation. Revenue is recorded by source; i.e., taxes, licenses and permits, fines and forfeits, service charges, etc. General Fund expenditures are made primarily for current day-to-day operations and operating equipment and are recorded by major functional classifications and by operating departments. This fund accounts for all financial transactions not properly accounted for in another fund. ~ ~ ~ W.J .. I: I ~ c ~ ~ ~ t C t ~ 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 GENERAL FUND COMPARATIVE BALANCE SHEETS ASSETS Cash and Investments Taxes Receivable- Delinquent Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due From Other Governmental Units Due From Other Funds Inventory Prepaid Items TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Accrued Items Due to Other Governmental Units Deferred Revenue Total Liabilities Fund Balance: Reserved for - Inventory Prepaid Items Unreserved - Designated for Working Capital Undesignated Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE December 31 1999 1998 47,198 60,349 2,916 8,854 2,304,648 2,196,484 423,617 182,736 2,778,379 2,448,423 $3,251,824 $ 2,731,351 $ 1,307,493 169,150 46 257 44,825 11,624 89,715 1,578,600 47,198 2,916 $ 3,251,824 $ 162,215 119,589 22,188 169,453 473,445 $ 2,293,745 76,608 46 257 41,542 96,286 153,664 o 60,349 8,854 $ 2,731,351 $ 96,524 72,730 36,763 76,911 282,928 37 CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 1998 Over (Under) Budget Actual Budget Actual REVENUES: General Property Taxes $ 3,298,518 $ 3,125,776 $ (172,742) $ 2,804,065 Licenses and Permits 456,820 609,344 152,524 694,809 Intergovernmental 961,917 864,985 (96,932) 880,697 Charges for Services 599,531 754,629 155,098 1,018,441 Fines 43,500 78,396 34,896 48,923 Miscellaneous 201,400 267,965 66,565 358,435 Total Revenues 5,561,686 5,701,095 139,409 5,805,370 EXPENDITURES: Current - General Government 1,800,324 1,700,086 (100,238) 1,551,410 Public Safety 2,012,834 1,820,436 (192,398) 1,528,282 Public Works 1,708,934 1,363,875 (345,059) 1,005,394 Sanitation 189,347 119,957 (69,390) 101,039 Parks and Recreation 585,875 579,916 (5,959) 461,131 Recycling 94,999 88,307 (6,692) 76,773 Miscellaneous 118,796 97,032 (21,764) 75,950 Total Expenditures 6,511,109 5,769,609 (741,500) . 4,799,979 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (949,423) (68,514) 880,909 1,005,391 OTHER FINANCING SOURCES (USES): Operating Transfers In 949,423 776,699 (172,724) 464,020 Operating Transfers Out 0 (378,229) (378,229) 0 Proceeds from Sale of Property 0 0 0 2,303 Total Other Financing Sources (Uses) 949,423 398,470 (550,953) 466,323 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ 0 329,956 $ 329,956 1,471,714 FUND BALANCE - January 1 2,448,423 1,846,747 RESIDUAL EQUITY TRANSFER 0 (870,038) FUND BALANCE - December 31 $ 2,778,379 $ 2,448,423 ~ .. .. I: i .. ~ C ~ ~ WI c c c o c ~ IIJ C C c c c ~ 38 ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 (Continued) 1999 1998 Over (Under) Budget Actual Budget Actual REVENUES: General Property Taxes $ 3,298,518 $ 3,125,776 $ (172,742) $ 2,804,065 Licenses and Permits 456,820 609,344 152,524 694,809 Intergovernmental Revenue - CDBG Grants 40,000 15,556 (24,444) 29,974 Local Government Aid 111,145 111,145 0 122,651 HACA and Local Performance Aid 367,375 367,520 145 368,956 COPS Grant 110,000 36,250 (73,750) 23,750 Street Maintenance 140,000 140,000 0 140,000 Fire Department Aid 65,000 60,599 (4,401) 57,830 Other Grants 128,397 133,915 5,518 137,536 Total Intergovernmental Revenue 961,917 864,985 (96,932) 880,697 Charges for Services - General Government 596,031 749,289 153,258 1,012,761 Utility Funds 3,500 5,340 1,840 5,680 Total Charges for Services 599,531 754,629 155,098 1,018,441 Fines 43,500 78,396 34,896 48,923 Miscellaneous - Assessments 0 2,075 2,075 647 Investment Income 25,000 62,041 37,041 177,570 Rent 27,000 31,407 4,407 30,384 Refunds and Reimbursements 16,000 34,603 18,603 13,761 Street Light Fees 119,800 128,978 9,178 124,114 Computer Services 12,000 7,870 (4,130) 10,865 Other 1,600 991 (609) 1,094 Total Miscellaneous 201,400 267,965 66,565 358,435 Total Revenues 5,561,686 5,701,095 139,409 5,805,370 39 .. ~ CITY OF ANDOVER, MINNESOTA GENERAL FUND ~ ~ STATEMENT OF REVENUES, EXPENDITURES AND C CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 (Continued) C 1999 1998 Over ~ (Under) Budget Actual Budget Actual EXPENDITURES: ~ General Government - Mayor and City Council - Personal Services $ 37,032 $ 37,780 $ 748 $ 20,024 Materials and Supplies 400 67 (333) 209 C Purchased Services 16,000 16,719 719 15,321 Other Services and Charges 23,422 22,267 (1,155) 22,834 Total Mayor and City Council 76,854 76,833 (21) 58,388 . Newsletter - ~ Purchased Services 17,000 16,941 (59) 7,200 City Clerk - C . , Personal Services 82,271 81,646 (625) 76,363 Materials and Supplies 480 505 25 881 Purchased Services 16,607 16,544 (63) 15,623 ~ Other Services and Charges 1,150 1,699 549 2,164 Total City Clerk 100,508 100,394 (114) 95,031 Administration - C Personal Services 66,962 67,248 286 62,076 i i Materials and Supplies 2,500 2,195 (305) 2,045 Purchased Services 13,419 13,828 409 12,760 C Other Services and Charges 4,047 3,536 (511) 4,539 Total Administration 86,928 86,807 (121) 81,420 Financial Administration - t Personal Services 198,661 191,518 (7,143) 164,065 Materials and Supplies 3,742 3,938 196 2,976 Purchased Services 4,921 6,100 1,179 4,298 Other Services and Charges 6,182 6,497 315 4,339 C Capital Outlay 1,500 153 (1,347) 0 Total Financial Administration 215,006 208,206 (6,800) 175,678 Elections - C Personal Services 1,516 1,566 50 11,860 Materials and Supplies 0 0 0 146 Purchased Services 0 0 0 1,305 C Capital Outlay 2,000 0 (2,000~ 0 Total Elections 3,516 1,566 (1,950 13,311 Assessing - C Purchased Services 76,000 77,578 1,578 75,197 Legal and Accounting - ~ Purchased Services 116,500 126,340 9,840 105,662 IiIj 40 C I I CITY OF ANDOVER, MINNESOTA GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 I (Continued) 1999 1998 I Over (Under) Budget Actual Budget Actual I EXPENDITURES: (Continued) General Government - (Continued) Planning and Zoning - Personal Services $ 176,735 $ 179,815 $ 3,080 $ 149,097 I Materials and Supplies 5,000 5,334 334 4,018 Purchased Services 10,598 9,899 (699) 6,628 Other Services and Charges 7,918 5,052 (2,866) 4,829 I Total Planning and Zoning 200,251 200,100 (151) 164,572 Data Processing - Personal Services 0 9,117 9,117 0 I Materials and Supplies 66,550 39,640 (26,910) 42,608 Capital Outlay 0 2,517 2,517 2,245 Total Data Processing 66,550 51,274 (15,276) 44,853 I City Hall Building - Materials and Supplies 6,500 5,446 (1,054) 5,813 Purchased Services 38,275 37,573 (702) 38,064 I Other Services and Charges 23,125 16,022 (7,103) 14,467 Capital Outlay 0 0 0 997 Total City Hall Building 67,900 59,041 (8,859) 59,341 I Fire Department Building - Materials and Supplies 5,700 3,194 (2,506) 1,951 Purchased Services 38,550 29,803 (8,747) 31,454 Other Services and Charges 9,500 6,082 (3,418) 8,582 I Total Fire Department Building 53,750 39,079 (14,671) 41,987 Public Works Building - I Materials and Supplies 18,199 7,747 (10,452) 15,962 Purchased Services 38,899 37,565 (1,334) 38,529 Other Services and Charges 189,245 184,479 (4,766) 182,893 Capital Outlay 0 0 0 688 I Total Public Works Building 246,343 229,791 (16,552) 238,072 Senior Citizen Center - Materials and Supplies 800 50 (750) 452 I Purchased Services 7,280 6,875 (405) 6,727 Other Services and Charges 4,100 4,636 536 2,275 Total Senior Citizen Center 12,180 11,561 (619) 9,454 I Equipment Building - Materials and Supplies 1,000 0 2,543 Purchased Services 13,750 959 1,024 I Other Services and Charges 1,400 0 814 Total Equipment Building 16,150 959 4,381 41 I ~ CITY OF ANDOVER, MINNESOTA ~ GENERAL FUND ill STATEMENT OF REVENUES, EXPENDITURES AND ~ CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 (Continued) 0 1999 1998 Over C (Under) Budget Actual Budget Actual EXPENDITURES: (Continued) General Government - (Continued) ~ f I City Hall Garage - Materials and Supplies $ 150 $ 237 $ 87 $ 3 Purchased Services 1,725 703 (1,022~ 503 C Total City Hall Garage 1,875 940 (935 506 Field of Dreams Building- ~ Materials and Supplies 2,820 2,604 (216) 2,526 Purchased Services 16,322 15,880 (442) 16,282 Other Services and Charges 7,300 5,651 (1,649) 2,373 Total Field of Dreams Building 26,442 24,135 (2,307) 21,181 t Engineering - Personal Services 364,504 349,451 (15,053) 303,832 Materials and Supplies 17,500 9,842 (7,658) 10,400 C Purchased Services 8,310 9,268 958 7,199 Other Services and Charges 14,757 8,591 (6,166) 11,220 Capital Outlay 11 ,500 11,389 (111~ 22,525 C Total Engineering 416,571 388,541 (28,030 355,176 Total General Government 1,800,324 1,700,086 (100,238) 1,551,410 Public Safety - t Police - Purchased Services 1,012,092 927,868 (84,224) 719,670 Fire Protection - t Personal Services 417,078 367,309 315,148 Materials and Supplies 29,100 24,414 22,757 t Purchased Services 18,810 18,046 16,971 Other Services and Charges 142,025 135,831 125,541 Capital Outlay 62,000 22,183 22,475 Total Fire Protection 669,013 567,783 502,892 t Protective Inspection - Personal Services 276,144 274,287 (1,857) 240,635 Materials and Supplies 9,850 11,315 1,465 9,336 C Purchased Services 5,474 4,705 (769) 21,348 Other Services and Charges 14,226 14,608 382 10,842 Capital Outlay 0 628 628 837 Total Protective Inspection 305,694 305,543 (151) 282,998 C ' , C 42 C ----- -- I I CITY OF ANDOVER, MINNESOTA GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31,1998 I (Continued) I 1999 1998 Over (Under) Budget Actual Budget Actual I EXPENDITURES: (Continued) Public Safety - (Continued) Civil Defense - Personal Services $ 3,160 $ 3,252 $ 92 $ 3,034 I Materials and Supplies 4,450 214 (4,236) 5,054 Purchased Services 1,450 1,267 (183) 1,223 Other Services and Charges 3,650 2,445 (1,205) 3,557 I Total Civil Defense 12,710 7,178 (5,532) 12,868 Animal Control - Materials and Supplies 250 119 (131) 181 I Purchased Services 13,075 11,945 ?,130~ 9,673 Total Animal Control 13,325 12,064 1,261 9,854 I Total Public Safety 2,012,834 1,820,436 (192,398) 1,528,282 Public Works- Streets and Highways - I Personal Services 131,512 195,495 63,983 158,818 Materials and Supplies 27,357 20,546 (6,811) 21,240 Purchased Services 15,402 17,170 1,768 15,512 Other Services and Charges 810,759 477,789 (332,970) 277,308 I Total Streets and Highways 985,030 711,000 (274,030) 472,878 Snow and Ice Removal - Personal Services 228,224 170,292 (57,932) 106,399 I Materials and Supplies 126,400 124,877 (1,523) 84,861 Purchased Services 3,070 2,520 (550) 2,422 Other Services and Charges 82,573 83,256 683 70,220 I Capital Outlay 0 0 0 1,124 Total Snow and Ice Removal 440,267 380,945 (59,322) 265,026 Street Lighting - I Purchased Services 26,000 21,776 (4,224) 20,964 Other Services and Charges 200 150 (50) 350 Capital Outlay 10,000 7,050 (2,950) 3,060 Billed Services 113,700 113,244 (456) 112,575 I Total Street Lighting 149,900 142,220 (7,680) 136,949 Street Signs - I Personal Services 55,793 71,922 16,129 61,521 Materials and Supplies 29,150 34,486 5,336 43,830 Purchased Services 316 628 312 176 Other Services and Charges 23,478 8,420 (15,058) 7,664 I Total Street Signs 108,737 115,456 6,719 113,191 I 43 . .. CITY OF ANDOVER, MINNESOTA ~ , GENERAL FUND .. STATEMENT OF REVENUES, EXPENDITURES AND C CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 (Continued) C 1999 1998 Over ~ (Under) Budget Actual Budget Actual EXPENDITURES: (Continued) ~ Public Works - (Continued) Traffic Signals - .. Purchased Services $ 25,000 $ 14,254 $ (10,746) $ 17,350 Total Public Works 1,708,934 1,363,875 (345,059) 1,005,394 C Sanitation - Storm Sewers - C Personal Services 47,390 54,865 7,475 21,481 Materials and Supplies 4,500 4,128 (372) 12,103 Purchased Services 831 231 (600) 296 Other Services and Charges 67,765 14,887 (52,878) 32,813 ~ ' , Capital Outlay 30,000 20,000 (10,000) 0 Total Storm Sewers 150,486 94,111 (56,375) 66,693 ~ Tree Preservation and Weed Control- II.- Personal Services 11,157 11,881 724 21,331 Materials and Supplies 4,750 1,776 (2,974) 1,413 C Purchased Services 12,454 758 (11,696) 4,644 Other Services and Charges 10,500 11,431 931 6,958 Total Tree Preservation and Weed Control 38,861 25,846 (13,015) 34,346 ~ Total Sanitation 189,347 119,957 (69,390) 101,039 Parks and Recreation - C Personal Services 264,691 263,924 (767) 196,923 Materials and Supplies 52,400 53,958 1,558 42,704 Purchased Services 26,100 28,097 1,997 25,297 C Other Services and Charges 93,626 83,017 (10,609) 73,155 Capital Outlay 60,000 64,100 4,100 40,818 Miscellaneous 89,058 86,820 (2,238) 82,234 Total Parks and Recreation 585,875 579,916 (5,959) 461,131 C Recycling - Personal Services 53,063 50,229 (2,834) 39,585 Materials and Supplies 6,050 1,062 (4,988) 1,118 C Purchased Services 7,100 2,169 (4,931) 3,202 Other Services and Charges 24,786 30,222 5,436 29,943 Capital Outlay 4,000 4,625 625 2,925 C Total Recycling 94,999 88,307 (6,692) 76,773 ~ I.j 44 . W. I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 (Continued) EXPENDITURES: (Continued) Unallocated - CDBG Insurance Miscellaneous Total Unallocated 1999 1998 Over (Under) Budget Actual Budget Actual $ 35,000 $ 17,884 $ (17,116) $ 30,211 32,000 24,590 (7,410) 27,969 51,796 54,558 2,762 17,770 118,796 97,032 (21,764) 75,950 6,511,109 5,769,609 (741,500) 4,799,979 (949,423) (68,514) 880,909 1,005,391 949,423 776,699 (172,724) 464,020 0 (378,229) (378,229) 0 0 0 0 2,303 949,423 398,470 (550,953) 466,323 Total Expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating Transfers In Operating Transfers Out Proceeds from Sale of Property Total Other Financing Sources (Uses) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ o 329,956 2,448,423 o $ 2,778,379 $ 329,956 1,471,714 1,846,747 FUND BALANCE - January 1 RESIDUAL EQUITY TRANSFER , (870,038) $ 2,448,423 FUND ~ALANCE - December 31 45 ~ ~ ~ f; , -.j ~ ~ ~ ~ ~ ~ ~ c ~ I.j ~ *- [ [ [ ~ .. ~. ~ 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 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, charter provision, or local ordinance to finance particular functions or activities of government. CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals for December 31, 1998 Drainage and EDA Forestry LRRWMO Mapping General ASSETS Cash and Investments $ 21,121 $ 9,585 $ 28,738 $ 6,816 Taxes Receivable - Delinquent 0 1,032 0 0 Accounts Receivable 2,610 0 0 345 Interest Receivable 130 30 18, 0 Due from Other Governmental Units 2,500 172 0 0 TOTAL ASSETS $ 26,361 $ 10,819 $ 28,923 $ 7,161 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 0 $ 0 $ 5,065 $ 58 Accrued Items 249 494 70 4,038 Deferred Revenue 0 1,032 0 0 Due to Other Funds 0 0 0 0 Total Liabilities 249 1,526 5,135 4,096 Fund Balance (Deficit): Unreserved - Undesignated 26,112 9,293 23,788 3,065 TOTAL LIABILITIES AND FUND BALANCE $ 26,361 $ 10,819 $ 28,923 $ 7,161 w . . ~ iIIl -- ~ ~ /!II 'i I .. ~ ~ C ~ ~ c ,. .. ,. ~ [ ~ iI. ~ .. C ~ C I I I I Capital Oak Wilt Trail and Septic Equipment Suppression Developer Totals Transportation Disposal Reserve Program Seal coating 1999 1998 I $ 175,719 $ 7,461 $ 993,331 $ 165 $ 323,400 $ 1,566,336 $ 2,071,235 0 0 0 0 0 1,032 557 I 0 0 0 0 0 2,955 105 976 41 5,675 0 1,793 8,830 60,621 0 0 0 0 0 2,672 3,084 I $ 176,695 $ 7,502 $ 999,006 $ 165 $ 325,193 $ 1,581,825 $ 2,135,602 I $ 0 $ 0 $ 3,227 $ 0 $ 0 $ 8,350 $ 5,296 I 0 0 1,635 0 0 6,486 492 144,800 0 0 0 283,989 429,821 468,381 0 0 0 13,000 0 13,000 0 144,800 0 4,862 13,000 283,989 457,657 474,169 I I 31,895 7,502 994,144 (12,835) 41,204 1,124,168 1,661,433 I $ 176,695 $ 7,502 $ 999,006 $ 165 $ 325,193 $ 1,581,825 $ 2,135,602 I I I I I I 46 I C CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS 1'\ WI COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE C Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 ~ Drainage ~ and EDA Forestry LRRWMO Mapping General ~ REVENUES: General Property Taxes $ 0 $ 13,657 $ 0 $ 0 Intergovernmental - W State 0 2,545 0 0 Other Grants 10,000 0 0 0 Charges for Services 15,518 0 0 0 Miscellaneous - ~~ Investment Income 658 146 1,151 0 W~ Refunds and Reimbursements 0 0 0 0 Other 0 0 1,074 82,170 ~~ Total Revenues 26,176 16,348 2,225 82,170 w. EXPENDITURES: Current - t~ Public Works 23,206 16,493 26,282 0 Economic Development 0 0 0 112,480 Capital Outlay 0 0 3,848 0 ~~ Total Expenditures 23,206 16,493 30,130 112,480 i. EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,970 (145) (27,905) (30,310) ~~ OTHER FINANCING SOURCES (USES); Operating Transfers In 0 0 0 7 Operating Transfers Out ~~~~ ~m g:~~ ~86) ~~ Total Other Financing Sources (Uses) 79) EXCESS OF REVENUES AND ~~ OrnER SOURCES OVER (UNDER) ~Ii EXPENDITURES AND OrnER USES 2,888 (162) (28,048) (30,389) FUND BALANCE - January 1 23,224 9,455 51,836 33,454 ~~ RESIDUAL EQUITY TRANSFER 0 0 0 0 $ ~~ FUND BALANCE (DEFICIT) - December 31 $ 26,112 $ 9,293 23,788 $ 3,065 '~ ~~ :~ ~, .. ~~ iJ -- ------ -- I I I I Capital Totals Trail and Septic Equipment Developer Oak Wilt December 31 I Transportation Disposal Reserve SeaIcoating Suppression 1999 1998 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,657 $ 13,889 I 0 0 0 0 0 2,545 2,546 0 0 0 0 0 10,000 10,000 1,500 0 0 0 0 17,018 37,330 I 5,025 231 45,850 16,623 0 69,684 115,120 0 0 0 0 3,735 3,735 7,057 I 0 0 0 0 0 83,244 82,857 6,525 231 45,850 16,623 3,735 199,883 268,799 I 0 0 0 0 19,273 85,254 71,213 0 0 0 0 0 112,480 102,062 I 0 0 256,081 0 0 259,929 175,710 0 0 256,081 0 19,273 457,663 348,985 I 6,525 231 (210,231) 16,623 (15,538) (257,780) (80,186) 0 0 418,000 0 0 418,007 285,718 I (593) ?7) (695,936) (597) (11) (697,492) (50,000) (593) 27) (277,936) (597) (11) (279,485) 235,718 I 5,932 204 (488,167) 16,026 (15,549) (537,265) 155,532 I 25,963 7,298 1,482,311 25,178 2,714 1,661,433 447,263 0 0 0 0 0 0 1,058,638 I $ 31,895 $ 7,502 $ 994,144 $ 41,204 $ (12,835) $ 1,124,168 $ 1,661,433 I I I 47 I ~~ CITY OF ANDOVER, MINNESOTA ~~ FORESTRY FUND ~ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES U~ IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 II With Comparative Actual Amounts for the Year Ended December 31, 1998 ~l\ W~ 1999 1998 Over ~~ (Under) Budget Actual Budget Actual REVENUES: ~~ Intergovernmental - Other Grants $ 0 $ 10,000 $ 10,000 $ 0 Charges for Services 16,000 15,518 (482) 12,892 ~~ Miscellaneous - .. Investment Income 772 658 (114) 1,527 Refunds and Reimbursements 0 0 0 0 ~~ Total Revenues 16,772 26,176 9,404 14,419 EXPENDITURES: ~~ Public Works- , , Personal Services 9,773 11,423 1,650 10,736 II Materials and Supplies 1,000 650 (350) 1,343 ~~ Purchased Services 5,000 10,909 5,909 359 Other Services and Charges 999 224 (775) 0 :. Total Expenditures 16,772 23,206 6,434 12,438 ~~ EXCESS OF REVENUES OVER ~ (UNDER) EXPENDITURES 0 2,970 2,970 1,981 OTHER FINANCING USES: ~~ Operating Transfers Out 0 (82) (82) 0 EXCESS OF REVENUES OVER ~~ (UNDER) EXPENDITURES k.r AND OTHER USES $ 0 2,888 $ 2,888 1,981 ~~ FUND BALANCE - January 1 23,224 21,243 FUND BALANCE - December 31 $ 26,112 $ 23,224 ~~ ~~ ~~ 48 ~~ ~~ - --- I CITY OF ANDOVER, MINNESOTA I LRRWMO FUND I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 I With Comparative Actual Amounts for the Year Ended December 31, 1998 I 1999 1998 Over (Under) I Budget Actual Budget Actual REVENUES: General Property Taxes $ 16,133 $ 13,657 $ (2,476) $ 13,889 Intergovernmental - I State Aids 1,867 2,545 678 2,546 Miscellaneous - Investment Income 200 146 (54) 496 I Refunds and Reimbursements 200 0 (200) 0 Total Revenues 18,400 16,348 (2,052) 16,931 I EXPENDITURES: Public Works- Personal Services 13,215 13 ,440 225 12,225 I Materials and Supplies 519 0 (519) 0 Purchased Services 460 165 (295) 0 Other Services and Charges 4,206 2,888 (1,318) 2,923 I Total Expenditures 18,400 16,493 (1,907) 15,148 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 0 (145) (145) 1,783 I OTHER FINANCING USES: Operating Transfers Out 0 (17) (17) 0 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES I AND OTHER USES $ 0 (162) $ (162) 1,783 FUND BALANCE - January 1 9,455 7,672 I FUND BALANCE - December 31 $ 9,293 $ 9,455 I I I 49 I ~: CITY OF ANDOVER, MINNESOTA DRAINAGE AND MAPPING FUND ~~ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES ~~ IN FUND BALANCE - BUDGET AND ACTUAL .~ Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 ~~ W~ 1999 1998 Over ~~ , I (Under) .. Budget Actual Budget Actual REVENUES: ~~ Charges for Services - Drainage and Mapping $ 45,550 $ 0 $ (45,550) $ 24,438 Miscellaneous - ~j Investment Income 700 1,151 451 2,689 Other 0 1,074 1,074 857 Total Revenues 46,250 2,225 (44,025) 27,984 ~ EXPENDITURES: li.J Public Works- ~ Materials and Supplies 6,500 2,996 (3,504) 2,184 Purchased Services 39,700 23,286 (16,414) 23,587 Other Services and Charges 50 0 (50) 2,645 Capital Outlay 0 3,848 3,848 998 C Total Expenditures 46,250 30,130 (16,120) 29,414 EXCESS OF REVENUES ~ (UNDER) EXPENDITURES 0 (27,905) (27,905) (1,430) OTHER FINANCING USES: C Operating Transfers Out 0 (143) (143) 0 EXCESS OF REVENUES OVER C (UNDER) EXPENDITURES AND OTHER USES $ 0 (28,048) $ (28,048) (1,430) FUND BALANCE - January 1 51,836 53,266 C FUND BALANCE - December 31 $ 23,788 $ 51,836 0 ~ C 50 C C -- --- CITY OF ANDOVER, MINNESOTA EDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 ' With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 1998 Over (Under) Budget Actual Budget Actual ' REVENUES: Miscellaneous - Investment Income $ 1,326 $ 0 $ (1,326) $ 3,043 ' Other 82,000 82,170 170 82,000 Total Revenues 83,326 82,170 (1,1567 85,043 EXPENDITURES: Economic Development - Personal Services 105 107,251 1,605 97,364 Materials and Supplies 2,000 22 (1,978) 100 1 Purchased Services 9,410 2,871 (6,539) 4,565 Other Services and Charges 1,270 2,336 1,066 33 Total Expenditures 118,326 112,480 (5,846 ) 102,062 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (35,000) (30,310) 4,690 (17,019) OTHER FINANCING SOURCES (USES): Operating Transfers In 0 7 7 0 Operating Transfers Out 0 (86) (86) 0 Proceeds from Sale of Property 35,000 0 (35,000) 0 Total Other Financing Sources (Uses) 35,000 (79 35,079 0 ' EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 (30,389) $ (30 (17,019) FUND BALANCE - January 1 33,454 52,473 RESIDUAL EQUITY TRANSFER 0 (2,000) FUND BALANCE - December 31 $ 3 $ 33,454 51 CITY OF ANDOVER, MINNESOTA TRAIL AND TRANSPORTATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 1998 Over (Under) Budget Actual Budget Actual REVENUES: Charges for Services $ 0 $ 1,500 $ 1,500 $ 0 Miscellaneous - Investment Income 0 5,025 5,025 15,238 Total Revenues 0 6,525 6,525 15,238 EXPENDITURES 0 0 0 0 EXCESS OF REVENUES OVER EXPENDITURES 0 6,525 6,525 15,238 OTHER FINANCING USES: Operating Transfers Out 0 (593) (593) 0 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 5,932 $ 5,932 15,238 FUND BALANCE - January 1 25,963 10,725 FUND BALANCE - December 31 $ 31 ,895 $ 25,963 ~ ~ ~, * ~ .. c ~ ~ ,.. U.i ~ ~ iii ~ ~ Ii.I ~ ~ 52 ~ 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 SEPTIC DISPOSAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 REVENUES: Miscellaneous - Investment Income 1999 1998 Over (Under) Budget Actual Budget Actual $ 100 $ 231 $ 131 $ 601 100 0 (100) 700 0 231 231 (99) 0 (27) (27) 0 EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING USES: Operating Transfers Out EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ o 204 $ 204 (99) FUND BALANCE - January 1 FUND BALANCE - December 31 7,298 7,502 7,397 7,298 $ $ 53 CITY OF ANDOVER, MINNESOTA CAPITAL EQUIPMENT RESERVE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 ~ ~ ~ ~ .. 1999 1998 Over (Under) Budget Actual Budget Actual REVENUES: Miscellaneous - Investment Income $ 0 $ 45,850 $ 45,850 $ 75,536 EXPENDITURES: Capital Outlay 0 256,081 256,081 174,712 EXCESS OF REVENUES (UNDER) EXPENDITURES 0 (210,231) (210,231) (99,176) OTHER FINANCING SOURCES (USES): Operating Transfers In 320,479 418,000 97,521 285,718 Operating Transfers Out (320,479) (695,936) (375,457) (50,000) Total Other Financing Sources (Uses) 0 (277,936) (277,936) 235,718 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 (488,167) $ (488,167) 136,542 FUND BALANCE - January 1 1,482,311 285,131 RESIDUAL EQUITY TRANSFER 0 1,060,638 FUND BALANCE - December 31 $ 994,144 $ 1 ,482,311 c ~ ~ C ~ ~ ~ ~ ~.' .. c r\ j.j ~ ~ ~ .. ~ 54 c ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA DEVELOPER SEALCOATING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 REVENUES: Miscellaneous - Investment Incorne 1999 1998 Over (Under) Budget Actual Budget Actual $ 0 $ 16,623 $ 16,623 $ 15,822 0 0 0 0 0 16,623 16,623 15,822 0 (597) (597) 0 EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING USES: Operating Transfers Out EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ o 16,026 25,178 $ 41,204 $ 16,026 15,822 9,356 25,178 FUND BALANCE - January I FUND BALANCE - December 31 $ 55 CITY OF ANDOVER, MINNESOTA OAK WILT SUPPRESSION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 1998 Over (Under) Budget Actual Budget Actual REVENUES: Intergovernmental - Other Grants $ 5,000 $ 0 $ (5,000) $ 10,000 Miscellaneous - Investment Incorne 200 0 (200) 168 Refunds and Reimbursements 5,000 3,735 (1,265) 7,057 Total Revenues 10,200 3,735 (6,465) 17,225 EXPENDITURES: Public Works- Materials and Supplies 100 0 (100) 0 Purchased Services 10,100 19,231 9,131 14,511 Other Services and Charges 0 42 42 0 Total Expenditures 10,200 19,273 9,073 14,511 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 0 (15,538) (15,538) 2,714 OTHER FINANCING USES: Operating Transfers Out 0 (11) (11) 0 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 (15,549) $ (15,549) 2,714 FUND BALANCE - January 1 2,714 0 FUND BALANCE (DEFICIT) - December 31 $ (12,835) $ 2,714 ~ m .. ~ '" .. ~ " t .. c .. 1:' ... c ~ .. ~ ~ o c c c ~ ~ ~ ~ .. 56 ... Ii ... ~ I I I I I I I I I I I I I I I I I I 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. . f: f .- CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS ~: .. COMBINING BALANCE SHEET December 31, 1999 ~ With Comparative Totals for December 31, 1998 .. ~ ){ I' , ill TIF TIP Certificates TIP Bonds Bonds ~ of Commercial of 1993B of 1994B Indebtedness Revitalization Project 1-1 Project 1-2 i.i ASSETS Cash and Investments $ 103,509 $ 547,473 $ 247,778 $ 375,735 . [' , Taxes Receivable - * Delinquent 8,110 169,025 0 0 Special Assessments Receivable - 1'1 Deferred 0 560,693 0 0 I..- Delinquent 0 0 0 0 Interest Receivable 168 1,551 1,238 0 C Due from Other Governmental Units 1,832 2,960 313 637 TOTAL ASSETS $ 113,619 $ 1,281,702 $ 249,329 $ 376,372 C LIABILITIES AND FUND BALANCE Liabilities: C Accounts Payable $ 0 $ 0 $ 0 $ 0 Developer Advances 0 0 0 0 Deferred Revenue 8,110 729,718 0 0 Due to Other Funds 0 0 0 0 ~ Total Liabilities 8,110 729,718 0 0 Fund Balance (Deficit): ~ Reserved For Debt Service 105,509 551,984 249,329 376,372 f: I Unreserved - .. Undesignated 0 0 0 0 ~ Total Fund Balance (Deficit) 105,509 551,984 249,329 376,372 .. TOTAL LIABILITIES AND FUND BALANCE $ 113,619 $ 1,281,702 $ 249,329 $ 376,372 ~ C C r'\ ill C C G.O. G.O. G.O. Improvement G.O. G.O. G.O. G.O. Improvement Improvement Refunding Improvement Improvement Improvement Improvement Bonds Bonds Bonds Bonds Bonds Bonds Bonds of 1977A of 1985B of 1986C/1997C of 1989 of 1993A of 1994C of 1995A $ 548,260 $ 16,661 $ 825,602 $ 13,504 $ 677 $ 190,354 $ 698,391 0 0 0 0 0 0 0 ' 95,591 0 151,650 57,968 221,023 158,444 51,328 3 0 4,515 1 6 4,079 0 3,414 97 4,381 0 20 917 3,863 0 231 778 1,864 9 1,751 0 $ 647,268 $ 16 $ 986,926 $__73,337 $ 221,735 $ 355,545 $ 753,582 $ 0 $ 0 $ 0 $ 0 $ 553 $ 0 $ 0 0 0 0 0 0 0 0 95,594 0 156,165 57,969 221,029 162,523 51,328 0 0 0 0 139,000 0 0 95,594 0 156,165 57,969 360,582 162,523 51,328 i 551,674 16,989 830,761 15,368 0 193,022 702,254 0 0 0 0 (138,847) 0 0 551,674 16,989 830,761 15,368 (138,847) 193,022 702,254 ' $ 647,268 $ 16 $ 986,926 $ 73,337 $ 221,735 $ 355,545 $ 753 ' 57 CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals for December 31,1998 (Continued) G.O. Improvement Bonds of 1996C ASSETS Cash and Investments Taxes Receivable - Delinquent Special Assessments Receivable - Deferred Delinquent Interest Receivable Due from Other Governmental Units $ 902,111 0 226,948 1,558 4,881 806 TOTAL ASSETS $ 1,136,304 LIABILITIES AND FUND BALANCE (DEFICIT) Liabilities: Accounts Payable Developer Advances Deferred Revenue Due to Other Funds Total Liabilities $ 0 o 228,506 o 228,506 Fund Balance (Deficit): Reserved For Debt Service Unreserved - Undesignated Total Fund Balance (Deficit) 907,798 o 907,798 TOTAL LIABILITIES AND FUND BALANCE $ 1,136,304 ED~UbliC Project Revenue Bonds of1997 G.O. Improvement Bonds of 1997A $ $ 17,341 $ 1,326,077 0 0 0 279,698 0 0 0 9,786 0 0 17,341 $ 1,615,561 0 $ 0 $ 0 0 0 294,869 0 279,698 1,471,975 0 0 0 0 279,698 1,766,844 17,341 1,335,863 2,433,729 0 0 0 17,341 1,335,863 2,433,729 $ $ 17,341 $ 1,615,561 ~ ~ " . G.O. Improvement Bonds of1997B ~ o ~ ~ $ 2,711,581 o 1,471,975 o 17,017 o ~ .. 11I\ ~ .. li.J $ 4,200,573 c c ~ ~ ~ C $ 4,200,573 11I\ ~ ~ C C ~ I I I I G.O. G.O. G.O. Refunding Equipment TIF Improvement I Bonds Certificate Bonds Bonds Totals of 1998 of 1999 of 1999 of1999 1999 1998 I $ 125,603 $ 2,825 $ 154 $ 364,631 $ 9,018,267 $ 7,354,976 14,926 0 0 0 192,061 74,551 I 0 0 0 0 3,275,318 5,938,798 0 0 0 0 10,162 10,162 0 15 0 0 47,348 274,607 I 3,268 0 0 1,343 15,792 135,945 $ 143,797 2,840 154 365,974 $ 12,558,948 $ 13,789,039 I I $ 0 $ 0 $ 0 $ 0 $ 553 $ 5,943 0 0 0 0 294,869 0 14,926 0 0 0 3,477,541 6,023,511 I 0 0 35,000 0 174,000 0 14,926 0 35,000 0 3,946,963 6,029,454 I 128,871 2,840 0 365,974 8,785,678 7,770,700 0 0 (34,846) 0 (173,693) (11,115) I 128,871 2,840 (34,846) 365,974 8,611,985 7,759,585 I $ 143,797 $ 2,840 $ 154 $ 365,974 $ 12,558,948 $ 13,789,039 I I I I 58 I CITY OF ANDOVER, MINNESOTA ~ DEBT SERVICE FUNDS ~ COMBINING STATEMENT OF REVENUES, EXPENDITURES .. AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 -- I.. With Comparative Totals for the Year Ended December 31, 1998 III ~ TIF TIP Certificates TIP Bonds Bonds C of Commercial of 1993B of 1994B Indebtedness Revitalization Project 1-1 Project 1-2 REVENUES: Taxes $ 142,173 $ 0 $ 0 $ 0 ~ Tax Increments 0 592,845 62,633 127,522 Special Assessments 0 71,746 0 0 Intergovernmental - ~ State Aids 35,959 0 0 0 Miscellaneous - Investment Income 1,670 9,597 6,967 0 Other 0 0 0 0 ~, Total Revenues 179,802 674,188 69,600 127,522 .. EXPENDITURES: ~ Debt Service - Principal Retirement 180,000 220,000 50,000 90,000 Interest and Fiscal Charges 14,120 388,338 12,862 36,601 ~ Other 1,756 1,421 0 0 Total Expenditures 195,876 609,759 62,862 126,601 EXCESS OF REVENUES OVER ,.. (UNDER) EXPENDITURES (16,074) 64,429 6,738 921 \.i OTHER FINANCING SOURCES ~ (USES): Operating Transfers In 31,093 0 0 0 Operating Transfers Out 0 (640) (783) 0 'II Bond Proceeds 0 0 0 0 Total Other Financing ill Sources (Uses) 31,093 (640) (783) 0 EXCESS OF REVENUES AND OTHER D SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 15,019 63,789 5,955 921 C FUND BALANCE (DEFICIT) - January 1 90,490 488,195 243,374 375,451 ~ RESIDUAL EQUITY TRANSFERS IN (OUT) 0 0 0 0 FUND BALANCE (DEFICIT) - ~ December 31 $ 105,509 $ 551,984 $ 249,329 $ 376,372 ~ C - -- -- ------. --,----- G.O. G.O. G.O. Improvement G.O. G.O. G.O. G.O. Improvement Improvement Refunding Improvement Improvement Improvement Improvement Bonds Bonds Bonds of Bonds Bonds Bonds Bonds of 1977A of 1985B 1986C/1997C of 1989 of 1993A of 1994C of 1995A ® $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 i 0 0 0 0 0 0 0 21,397 537 87,679 25,027 21,410 95,170 62,531 0 0 0 0 0 0 0 13,521 3,476 18,185 1,069 4,626 3,236 12,514 0 0 0 0 0 0 0 34,918 4,013 105,864 26,096 26,036 98,406 75,045 60,000 155,000 210,000 310,000 365,000 110,000 230,000 23,250 13,578 18,585 40,118 84,872 47,847 111,748 0 2,376 0 0 696 0 5,321 83,250 170,954 228,585 350,118 450,568 157,847 347,069 (48,332) (166,941) (122,721) (324,022) (424,532) (59,441) (272,024) 0 98,149 0 350,505 32,511 21,560 13,619 (2,398) 0 (3,495) 0 ( 0) (6 0 ) (3,3 9) (2,398) 98,149 (3,495) 350,505 32,332 20,916 10,250 (50,730) (68,792) (126,216) 26,483 (392,200) (38,525) (261,774) 602,404 85,781 956,977 (11,115) 253,353 231,547 964,028 0 0 0 0 0 0 0 $ 551 $ 16 $ 830 $ 15,368 $ (138,847) $ 193,022 $ 702,254 ' 59 CITY OF ANDOVER, MINNESOTA ~ DEBT SERVICE FUNDS ~ COMBINING STATEMENT OF REVENUES, EXPENDITURES ~ AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 ~ With Comparative Totals for the Year Ended December 31, 1998 ' .' (Continued) ~ G.O. EDA Public G.O. G.O. Improvement Project Improvement Improvement C Bonds Revenue Bonds Bonds of 1996C Bonds ofl997 of 1997A of 1997B REVENUES: Taxes $ 0 $ 0 $ 0 $ 0 ~ Tax Increments 0 0 0 0 Special Assessments 88,887 0 384,461 2,143,334 Intergovernmental - ~ State Aids 0 0 0 0 LI Miscellaneous - 11II Investment Income 26,685 0 103,491 193,643 ~ Other 0 170,025 0 0 Total Revenues 115,572 170,025 487,952 2,336,977 EXPENDITURES: C Debt Service - Principal Retirement 55,000 40,000 650,000 795,000 Interest and Fiscal Charges 23,013 130,025 114,785 240,355 0 Other 0 0 0 0 Total Expenditures 78,013 170,025 764,785 1,035,355 EXCESS OF REVENUES OVER ~ (UNDER) EXPENDITURES 37,559 0 (276,833) 1,301,622 IiIj OTHER FINANCING SOURCES C (USES): Operating Transfers In 0 0 100,574 118,480 Operating Transfers Out (2,891) 0 0 0 r, Bond Proceeds 0 0 0 0 Total Other Financing .. Sources (Uses) (2,891) 0 100,574 118,480 ~ '~ EXCESS OF REVENUES AND OTHER ' i SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 34,668 0 (176,259) 1,420,102 ~ FUND BALANCE (DEFICIT) - January 1 873,130 17,341 1,512,122 1,013,627 ~ RESIDUAL EQUITY TRANSFERS IN (OUT) 0 0 0 0 FUND BALANCE (DEFICIT) - ~ December 31 $ 907,798 $ 17,341 $ 1,335,863 $ 2,433,729 ~ ~ ~ ! I I I I I GO G.O. G.O. I Refunding Equipment TIF Improvement Bonds Certificate Bonds Bonds Totals of1998 of 1999 of 1999 of1999C 1999 1998 I $ 263,400 $ 0 $ 0 $ 0 $ 405,573 $ 354,255 0 0 0 0 783,000 815,831 0 0 0 235,309 3,237,488 3,299,872 I 83,859 0 0 0 119,818 171,530 I 258 186 0 13,520 412,644 469,991 0 0 0 0 170,025 165,780 347,517 186 0 248,829 5,128,548 5,277,259 I 255,000 0 0 0 3,775,000 4,585,000 I 26,579 1,426 36,312 1,225 1,365,639 1,508,679 0 0 0 0 11,570 28,912 281,579 1,426 36,312 1,225 5,152,209 6,122,591 I 65,938 (1,240) (36,312) 247,604 (23,661) (845,332) I 0 2,011,626 92 0 0 766,583 I (39) 0 0 0 (14,438) 0 0 4,080 1,466 118,370 123,916 746,701 53 4,080 1,466 118,370 876,061 2,758,327 I I 65,991 2,840 (34,846) 365,974 852,400 1,912,995 62,880 0 0 0 7,759,585 5,904,866 I 0 0 0 0 0 (58,276) I $ 128,871 $ 2,840 $ (34,846) $ 365,974 $ 8,611,985 $ 7,759,585 I 60 I c o c ~ c ~ II!I\ ~ ~ III o ~ li.l C ~ Ii.J ~ '-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 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. ~ 1:1 11III CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS ~ ~ COMBINING BALANCE SHEET ~ December 31, 1999 With Comparative Totals for December 31, 1998 ~ 11III Water Storm Sewer C Trunk Sewer Trunk Unfinanced Project Project Project Projects ~ ASSETS Cash and Investments $ 511 $ 638 $ 307,417 $ 1,715 Special Assessments Receivable - Deferred 982,770 0 153,848 342,794 ~ Delinquent 7,641 0 10 0 ' , Accounts/Loans Receivable 0 0 0 350 Interest Receivable 0 0 2,657 0 C Due from Other Governmental Units 182,538 0 441 0 Due From Other Funds 0 0 283,200 0 Prepaid Items 0 0 0 0 ~ TOTAL ASSETS $ 1,173,460 $ 638 $ 747,573 $ 344,859 ~ LIABILITIES AND FUND BALANCE ~ LIABILITIES: Accounts Payable $ 7,379 $ 0 $ 2,219 $ 2,377 ~ Contracts Payable 0 0 0 57,782 .. Developer Advances 0 0 0 642,240 Deferred Revenue 990,411 0 153,858 342,794 ,. Due to Other Funds 229,200 105,000 0 610,000 ~ Total Liabilities 1,226,990 105,000 156,077 1,655,193 FUND BALANCE (DEFICIT) [ Unreserved - Designated for Projects 0 0 591,496 0 [ Designated for Equipment 0 0 0 0 Undesignated (53,530) (104,362) 0 (1,310,334) Total Fund Balance (Deficit) (53,530) (104,362) 591,496 (1,310,334) = TOTAL LIABILITIES AND FUND BALANCE $ 1,173,460 $ 638 $ 747,573 $ 344,859 [ [ [ t I I I I I State Aid Tax Public Permanent Revolving State Aid Increment Park Works Improvement Projects Projects Projects Dedication Project Revolving I $ 378 $ 772,353 $ 703,410 $ 395,049 $ 155,657 $ 116,553 I 44,459 105 0 0 0 287,478 295 0 0 0 0 50,681 750 0 98,079 2,556 6,805 2,635 I 0 1,763 7,604 0 0 656 91,254 0 31,423 1,125 0 58,880 0 0 0 0 0 0 0 0 0 0 0 0 I $ 137,136 $ 774,221 $ 840,516 $ 398,730 $ 162,462 $ 516,883 I I $ 0 $ 7,086 $ 21,351 $ 3,524 $ 8,818 $ 3,891 0 0 0 0 0 0 0 0 0 0 0 0 I 44,754 105 98,079 0 0 338,159 1,096,611 0 0 0 0 0 1,141,365 7,191 119,430 3,524 8,818 342,050 I I 0 767,030 721,086 0 153,644 174,833 0 0 0 395,206 0 0 (1,004,229) 0 0 0 0 0 (1,004,229) 767,030 721,086 395,206 153,644 174,833 I $ 137,136 $ 774,221 $ 840,516 $ 398,730 $ 162,462 $ 516,883 I I I 61 I ~ ; , CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS r III COMBINING BALANCE SHEET C December 31, 1999 With Comparative Totals for December 31, 1998 (Continued) C Old City Kelsey Rd. 1999 G.O. Improvement C Hall Lake Park Equipment Bonds of Remodel Project Certificate 1999C Project ASSETS C Cash and Investments $ 69 $ 887 $ 598,702 $ 658,392 Special Assessments Receivable - Deferred 0 0 0 0 C Delinquent 0 0 0 0 Accounts/Loans Receivable 0 0 0 0 Interest Receivable 0 0 4,126 2,525 t Due from Other Governmental Units 0 0 0 0 Due From Other Funds 0 0 0 0 Prepaid Items 0 0 0 0 ~ TOTAL ASSETS $ 69 $ 887 $ 602,828 $ 660,917 III LIABILITIES AND FUND BALANCE t LIABILITIES: Accounts Payable $ 0 $ 0 $ 77,327 $ 18,255 [ Contracts Payable 0 0 0 52,539 Developer Advances 0 0 0 0 Deferred Revenue 0 0 0 0 [ Due to Other Funds 6,600 96,000 0 0 Total Liabilities 6,600 96,000 77,327 70,794 FUND BALANCE (DEFICIT) t Unreserved - Designated for Projects 0 0 0 590,123 [ Designated for Equipment 0 0 525,501 0 Undesignated (6,531) (95,113) 0 0 Total Fund Balance (Deficit) (6,531) (95,113) 525,501 590,123 t TOTAL LIABILITIES AND FUND BALANCE $ 69 $ 887 $ 602,828 $ 660,917 t [ [ [ _____ ______u__ -- -- 1 A 1 1 Total 1999 1998 A $_3,7.11,731 . $ 2,242,682 1,811,454 2,376,610 58,627 59,480 111,175 126,213 19,331 174,984 365,661 294,490 283,200 0 0 2,175 $ 6,361,179 $ 5,276,634 $ 152,227 $ 131,667 110,321 139,281 642,240 0 1,968,160 2,552,113 2,143,411 0 5,016,359 2,823,061 2,998,212 3,261,168 920,707 117,240 (2,574,099) (924,835) 1,344,820 2,453,573 $ 6,361,179 $ 5,276,634 62 CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 REVENUES: Special Assessments Intergovernmental - State Aids Other Grants Other Revenue - Investment Income Park Dedication Fees Refunds and Reimbursements Miscellaneous Total Revenues EXPENDITURES: Capital Projects - Capital Outlay Interest Total Expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating Transfers In Operating Transfers Out Bond Proceeds Proceeds from Sale of Property Total Other Financing Sources (Uses) XCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCE (DEFICIT)- January 1 RESIDUAL EQUITY TRANSFERS UND BALANCE (DEFICIT)- December 31 Water Trunk Project $ 266,867 o o 3,948 o o o 270,815 309,537 562 310,099 (39,284) 261 (345,804) o ,0 (345,543) (384,827) 331,297 o Storm Sewer Project $ 0 o 3,070 3,070 (3,070) 388 o o o 388 (2,682) (101,680) o Sewer Trunk Project o o o o o o o $ 31,550 o o 5,716 o o 4,200 41,466 215,323 8,534 223,857 (182,391) o (313,560) o o (313,560) (495,951) 1,087,447 o $ (53,530) $ (104,362) $ 591,496 Unfinanced Projects ~ ~ o o : ~ w.. $ 438,808 o o 7 o 12,264 o 451,079 ~ .. 1,300,849 38,144 1,338,993 c c c [ [ t [ [ [ [ [ C (887,914) 13,241 o o o 13 ,241 (874,673) (435,661) o $(1,310,334) I I I I State Aid Tax Public Permanent I Revolving State Aid Increment Park Works Improvement Projects Projects Projects Dedication Project Revolving I $ 7,331 $ 1,713 $ 17,944 $ 0 $ 0 $ 189,458 0 65,623 0 0 0 0 0 0 0 0 0 0 I 0 8,624 118,182 20,975 7,600 0 0 0 0 399,028 0 0 I 0 442 2,234 200 0 0 0 0 0 6,795 0 0 7,331 76,402 138,360 426,998 7,600 189,458 I I 624,066 148,544 1,905,199 148,073 38,250 133,182 0 0 74,211 0 0 20,248 624,066 148,544 1,979,410 148,073 38,250 153,430 I (616,735) (72,142) (1,841,050) 278,925 (30,650) 36,028 ; 0 0 0 358 0 245 0 (1,495) (43,241) (1,317) 0 (2,578) 0 0 1,467,235 0 0 0 I 0 0 461,817 0 0 0 0 (1,495) 1,885,811 (959) 0 (2,333) I I (616,735) (73,637) 44,761 277,966 (30,650) 33,695 (387,494) 840,667 676,325 117,240 184,294 141,138 I 0 0 0 0 0 0 $(1,004,229) $ 767,030 $ 721,086 $ 395,206 $ 153,644 $ 174,833 I I 63 I CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 (Continued) Improvement Old City Kelsey Rd. 1999 G.O. Bonds of Hall Lake Park Equipment 1999C Remodel Project Certificate Project REVENUES: Special Assessments $ 0 $ 0 $ 0 $ 0 Intergovernmental - State Aids 0 0 0 0 Other Grants 0 50,000 0 0 Other Revenue - a Investment Income 0 172 67,958 25,104 Park Dedication Fees 0 0 0 0 Refunds and Reimbursements 0 50,000 0 0 Miscellaneous 0 0 0 0 Total Revenues 0 100,172 67,958 25,104 EXPENDITURES: Capital Projects - Capital Outlay 6,531 182,142 571,222 2,826,221 Interest 0 1,860 0 1,774 Total Expenditures 6 184,002 571,222 2,827,995 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (6,531) (83,830) (503,264) (2,802,891) OTHER FINANCING SOURCES (USES): Operating Transfers In 0 0 0 0 Operating Transfers Out 0 (11,283) 0 0 Bond Proceeds 0 0 1,028,765 3,393,014 Proceeds from Sale of Property 0 0 0 0 Total Other Financing Sources (Uses) 0 11,283 1,028,765 3,393,014 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (6,531) (95,113) 525,501 590,123 FUND BALANCE (DEFICIT)- January 1 0 0 0 0 RESIDUAL EQUITY TRANSFERS 0 0 0 0 r FUND BALANCE (DEFICIT)- December 31 _L __C6,5311 _L_(25,1131 $ 525,501 $ 590,123 I I I I I Total 1999 1998 I $ 953,671 $ 1,360,327 65,623 987,026 I 50,000 0 258,286 270,384 399,028 14,666 I 65,140 30,282 10,995 1,942,412 1,802,743 4,605,097 I I 8,409,139 7,073,937 148,403 64,474 8,557,542 7,138,411 I (6,754,799) (2,533,314) m 14,493 395,836 (719,278) (2,707,962) I 5,889,014 0 461,817 0 5,646,046 (2,312,126) I m (1,108,753) (4,845,440) 2,453,573 7,317,437 I 0 (18,424) $ 1,344,820 $ 2,453,573 I I 64 a c ~ III ~ ~ i.i pl '- c c [ [ t t C C C ~ ~ ~ C t I I I I I I I I I ~ I m I I I I I a 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 of the 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, 1999 With Comparative Totals for December 31, 1998 ~ ~ ~ Water Sewer $ 1,017,728 $ 663,375 0 8,462 0 2,443 . 211,178 241,787 5,780 4,334 0 1,691 235,000 233,611 17,542 41 0 39,960 1,487,228 1,195,704 751,021 168,111 992,071 159,465 12,976,808 17,934,977 14,719,900 18,262,553 (2,846,785) (3,729,289) 11,873,115 14,533,264 $ 13,360,343 $ 15,728,968 . ~ C ASSETS ~ C C CURRENT ASSETS: Cash and Cash Equivalents Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due From Other Governmental Units Due From Other Funds Inventory Prepaid Items Total Current Assets . I' ~ FUND EQUITY: Contributed Capital Retained Earnings: Unreserved Total Fund Equity $ 14,389 $ 1,479 11,027 5,658 0 0 0 8,996 25,416 16,133 18,699 14,076 44,115 30,209 11,814,780 14,344,608 1,501,448 1,354,151 13,316,228 15,698,759 $ 13,360,343 $ 15,728,968 t t C C ~ C C C r iI 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 COMPENSATED ABSENCES PAYABLE Total Liabilities TOTAL LIABILITIES AND FUND EQUITY c . t iI I I I I Totals 1999 1998 I $ 1,681,103 $ 1,691,755 I 8,462 0 2,443 2,443 452,965 462,716 I 10,114 81,757 1,691 3,094 468,611 0 I 17,583 14,165 39,960 38,122 2,682,932 2,294,052 I 919,132 849,810 1,151,536 971,536 I 30,911,785 26,967,982 32,982,453 28,789,328 (6,576,074) (5,901,465) I 26,406,379 22,887,863 $ 29,089,311 $ 25,181,915 I I $ 15,868 $ 19,008 16,685 1,702 0 484 I 8,996 534 41,549 21,728 I 32,775 22,012 74,324 43,740 I 26,159,388 22,754,745 I 2,855,599 2,383,430 29,014,987 25,138,175 I $ 29,089,311 $ 25,181,915 65 I CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS ~ ~ c c ~ ~ ~ c ~ c c c c c c c COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31,1998 Water Sewer OPERATING REVENUES: User Charges $ 753,939 $ 967,018 Meters 54,950 0 Permit Fees 18,600 0 Penalties 11,380 14,080 Other 1,146 813 Total Operating Revenues 840,015 981,911 OPERATING EXPENSES: Personal Services 366,690 120,453 Supplies 57,089 8,366 Other Services and Charges 51,740 50,123 Disposal Charges 0 456,029 Depreciation 336,183 338,426 Total Operating Expenses 811,702 973,397 OPERATING INCOME 28,313 8,514 NON-OPERATING REVENUES: Investment Income 32,850 29,265 INCOME BEFORE OPERATING TRANSFERS 61,163 37,779 Operating Transfers In 0 0 Operating Transfers Out (105,346) (60,587) Total Operating Transfers (105,346) (60,587) NET INCOME (LOSS) (44,183) (22,808) Add: Depreciation Charged Against Contributed Capital 227,450 311,710 RETAINED EARNINGS - January I 1,318,181 1,065,249 RESIDUAL EQUITY TRANSFER 0 0 RETAINED EARNINGS - December 31 $ 1,501,448 $ 1,354,151 c c ~ I I I I Totals 1999 1998 I $ 1,720,957 $ 1,738,249 54,950 65,122 I 18,600 18,975 25,460 29,694 1,959 4,671 I 1,821,926 1,856,711 I 487,143 427,512 65,455 65,735 101,863 123,991 I 456,029 542,883 674,609 617,789 1,785,099 1,777,910 I 36,827 78,801 I 62,115 139,297 98,942 218,098 I 0 30,500 (165,933) (396,718) I (165,933) (366,218) (66,991) (148,120) I 539,160 475,181 I 2,383,430 2,163,269 0 (106,900) I $ 2,855,599 $ 2,383,430 I I 66 I CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 Totals Water Sewer 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income $ 28,313 $ 8,514 $ 36,827 $ 78,801 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 336,183 338,426 674,609 617,789 Change in Assets and Liabilities: (Increase) Decrease in Special Assessments 0 (8,462) (8,462) 10,371 Receivable (lncrease) Decrease in Accounts Receivable 27,357 (17,606) 9,751 (64,618) Decrease in Due From Other Governmental Units 0 1,403 1,403 10,268 (Increase) in Inventory (3,377) (41) (3,418) (1,475) (Increase) Decrease in Prepaid Items 502 (2,340) (1,838) 7,837 (Decrease) in Accounts Payable (1,753) (1,387) (3,140) (4,452) Increase (Decrease) in Accrued Items 16,390 9,356 25,746 (6,868) (Decrease) in Due to Other Governmental Units (484) 0 (484) (150) Increase (Decrease) in Deferred Revenue 0 8,462 8,462 (1,498) Total Adjustments 374,818 327,811 702,629 567,204 NET CASH PROVIDED BY OPERATING ACTIVITIES 403,131 336,325 739,456 646,005 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Advances To Other Funds (235,000) (233,611) (468,611) 0 Transfers From Other Funds 0 0 0 30,500 Transfers To Other Funds (105,346) (60,587) (165,933) (503,618) Net Cash Used by Noncapital Financing Activities (340,346) (294,198) (634,544) (473,118) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Fixed Assets (109,323) (139,999) (249,322) (120,501) CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income 75,735 58,023 133,758 111,316 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,197 (39,849) (10,652) 163,702 CASH AND CASH EQUIVALENTS, JANUARY 1 988,531 703,224 1,691,755 1,528,053 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,017,728 $ 663,375 $ 1,681,103 $ 1,691,755 ~ C ~ C C C ~ C ~ C C C C C ~ C C ~ 67 C I CITY OF ANDOVER, MINNESOTA I WATER FUND I COMPARATIVE BALANCE SHEETS I December 31 1999 1998 ASSETS I CURRENT ASSETS: Cash and Cash Equivalents $ 1,017,728 $ 988,531 Accounts Receivable 211,178 238,535 Interest Receivable 5,780 48,665 I Due From Other Funds 235,000 0 Inventory 17,542 14,165 Prepaid Items 0 502 I Total Current Assets 1,487,228 1,290,398 PROPERTY, PLANT AND EQUIPMENT: I Furniture and Equipment 751,021 681,699 Machinery 992,071 952,071 Distribution System 12,976,808 11,382,482 I Total Cost 14,719,900 13,016,252 Less: Accumulated Depreciation (2,846,785) (2,510,603) Net Property, Plant and Equipment 11,873,115 10,505,649 I TOTAL ASSETS $ 13,360,343 $ 11,796,047 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 14,389 $ 16,142 I Accrued Items 11,027 1,146 Due to Other Governmental Units 0 484 Total Current Liabilities 25,416 17,772 I COMPENSATED ABSENCES PAYABLE 18,699 12,190 Total Liabilities 44,115 29,962 I FUND EQUITY: Contributed Capital 11,814,780 10,447,904 I Retained Earnings: Unreserved 1,501,448 1,318,181 Total Fund Equity 13,316,228 11,766,085 I TOTAL LIABILITIES AND FUND EQUITY $ 13,360,343 $ 11,796,047 I I 68 I CITY OF ANDOVER, MINNESOTA WATER FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1999 and 1998 1999 1998 Arnount Percent Arnount Percent OPERATING REVENUES: User Charges $ 753,939 89.8 % $ 825,687 89.0 % Meters 54,950 6.5 65,122 7.0 Permit Fees 18,600 2.2 18,975 2.0 Penalties 11 ,380 1.4 14,226 1.5 Other 1,146 0.1 4,571 0.5 Total Operating Revenues 840,015 100.0 928,581 100.0 OPERATING EXPENSES: Personal Services 366,690 43.6 298,918 32.3 Supplies 57,089 6.8 56,398 6.1 Other Services and Charges 51,740 6.2 74,736 8.0 Depreciation 336,183 40.0 312,101 33.6 Total Operating Expenses 811,702 96.6 742,153 80.0 OPERATING INCOME 28,313 3.4 186,428 20.0 NON-OPERATING REVENUES: Investment Income 32,850 3.9 82,219 8.9 INCOME BEFORE OPERATING TRANSFER 61,163 7.3 % 268,647 28.9 % Operating Transfers Out (105,346) (321,000) NET INCOME (LOSS) (44,183) (52,353) Add: Depreciation Charged Against Contributed Capital 227,450 197,235 RETAINED EARNINGS - January 1 1,318,181 1,246,999 RESIDUAL EQUITY TRANSFER 0 (73,700) RETAINED EARNINGS - December 31 $ 1,501,448 $ 1,318,181 ~ ~ C C C C C ~ Ii.j 69 c c ~ .. C C C C C C C C C I CITY OF ANDOVER, MINNESOTA I SEWER FUND I COMPARATIVE BALANCE SHEETS I December 31 1999 1998 ASSETS I CURRENT ASSETS: Cash and Cash Equivalents $ 663,375 $ 703,224 Special Assessments Receivable - Deferred 8,462 0 I Delinquent 2,443 2,443 Accounts Receivable 241,787 224,181 Interest Receivable 4,334 33,092 I Due From Other Governmental Units 1,691 3,094 Due From Other Funds 233,611 0 Inventory 41 0 I Prepaid Items 39,960 37,620 Total Current Assets 1,195,704 1,003,654 I PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment 168,111 168,111 Machinery 159,465 19,465 I Collection System 17,934,977 15,585,500 Total Cost 18,262,553 15,773,076 Less: Accumulated Depreciation (3,729,289) (3,390,862) I Net Property, Plant and Equipment 14,533,264 12,382,214 TOTAL ASSETS $ 15,728,968 $ 13,385,868 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: I Accounts Payable $ 1,479 $ 2,866 Accrued Items 5,658 556 Deferred Revenue 8,996 534 I Total Current Liabilities 16,133 3,956 COMPENSATED ABSENCES PAYABLE 14,076 9,822 I Total Liabilities 30,209 13,778 FUND EQUITY: I Contributed Capital 14,344,608 12,306,841 Retained Earnings: Unreserved 1,354,151 1,065,249 Total Fund Equity 15,698,759 13,372,090 I TOTAL LIABILITIES AND FUND EQUITY $ 15,728,968 $ 13,385,868 I 70 I Amount Percent Amount Percent c C !!II ~ C ~ C C C C C C C C C C ~ Ii.i CITY OF ANDOVER, MINNESOTA SEWER FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1999 and 1998 1999 1998 OPERATING REVENUES: User Charges $ 967,018 98.5 % $ 912,562 98.3 % Penalties 14,080 1.4 15,468 1.7 Other 813 0.1 100 0.0 Total Operating Revenues 981,911 100.0 928,130 100.0 OPERATING EXPENSES: Personal Services 120,453 12.3 128,594 13.9 Supplies 8,366 0.8 9,337 1.0 Other Services and Charges 50,123 5.1 49,255 5.3 Disposal Charges 456,029 46.4 542,883 58.5 Depreciation 338,426 34.5 305,688 32.9 Total Operating Expenses 973,397 99.1 1,035,757 111.6 OPERATING INCOME 8,514 0.9 (107,627) (11.6) NON-OPERATING REVENUES: Investment Income 29,265 3.0 57,078 6.2 INCOME (LOSS) BEFORE OPERATING TRANFERS 37,779 3.9 % (50,549) (5.4) % Operating Transfers In 0 30,500 Operating Transfers Out (60,587) (75,718) Total Operating Transfers (60,587) (45,218) NET INCOME (LOSS) (22,808) (95,767) Add: Depreciation Charged Against Contributed Capital 311,710 277,946 RETAINED EARNINGS - January 1 1,065,249 916,270 RESIDUAL EQUITY TRANSFER 0 (33,200) RETAINED EARNINGS - December 31 $ 1,354,151 $ 1,065,249 71 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 INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. ~ ~ c ~ ~ c c c ~ ~ c c c c c c c c c c ~ . 72 I CITY OF ANDOVER, MINNESOTA I INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND I CHANGES IN RETAINED EARNINGS Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 I Central Totals I Equipment Risk December 31 Maintenance Management 1999 1998 OPERATING REVENUES: I User Charges to Other City Funds $ 345,753 $ 27,616 $ 373,369 $ 359,302 Refunds and Reimbursements 645 0 645 1,895 Total Operating Revenues 346,398 27,616 374,014 361,197 I OPERATING EXPENSES: Personal Services 119,620 18,304 137,924 126,921 Supplies 137,207 460 137,667 128,674 I Other Services and Charges 67,521 23,111 90,632 67,815 Total Operating Expenses 324,348 41,875 366,223 323,410 I OPERATING INCOME (LOSS) 22,050 (14,259) 7,791 37,787 NON-OPERATING REVENUES: I Investment Income 589 3,665 4,254 11,394 INCOME (LOSS) BEFORE I OPERATING TRANSFERS 22,639 (10,594) 12,045 49,181 Operating Transfers (Out) (121 ) (291 ) (412) 0 I NET INCOME (LOSS) 22,518 (10,885) 11,633 49,181 RETAINED EARNINGS - January 1 53,392 96,225 149,617 105,436 I RESIDUAL EQUITY TRANSFER 0 0 0 (5,000) I RETAINED EARNINGS - December 31 $ 75,910 $ 85,340 $ 161,250 $ 149,617 I I I I 73 I CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 1999 With Comparative Totals for the Year Ended December 31, 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income (Loss) $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Change in Assets and Liabilities: (Increase) in Accounts Receivable (Increase) Decrease in Inventory Decrease in Prepaid Items Increase in Accounts Payable Increase (Decrease) in Accrued Items Total Adjustments Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers To Other Funds CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31 Central Equipment Maintenance $ ~ C C C C C C C C C ~ ~ ~.' II. [ C [ C C C C Risk Management Totals Year Ended December 31 1999 1998 22,050 $ (14,259) (5,987) 4,218 o 4,674 5,248 8,153 30,203 o o o 6,516 (4,407) 2,109 (12,150) (121) (291) 3,642 6,844 33,724 41,095 $ 74,819 (5,597) 97,447 $ 91,850 $ 7,791 (5,987) 4,218 o 11,190 841 10,262 18,053 (412) 10,486 28,127 138,542 $ 166,669 37,787 (231 ) (1,620) 465 4,288 (3,022) (120) 37,667 (5,000) 7,633 40,300 98,242 $ 138,542 74 I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA AGENCY FUNDS Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds.. CITY OF ANDOVER, MINNESOTA AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 1999 = ~ C C C ~, .. Balance Balance January 1, December 31, 1999 Additions Deductions 1999 ESCROW FUND ASSETS Cash and Temporary Investments $ 445,363 $ 682,002 $ 602,367 $ 524,998 LIABILITIES Accounts Payable $ 4,355 $ 840 $ 4,355 $ 840 Deposits Payable 441,008 684,663 601,513 524,158 Total Liabilities $ 445,363 $ 685,503 $ 605,868 $ 524,998 ~ iIII c c c c c c c c c c c 75 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 FixedAssets 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. CITY OF ANDOVER, MINNESOTA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS Year Ended December 31, 1999 (Unaudited) Balance January 1, 1999 Additions Disposals GENERAL FIXED ASSETS: Land and Improvements $ 3,970,750 $ 0 $ 0 Buildings and Improvements 3,115,300 79,150 0 Furniture and Equipment 879,201 85,382 0 Machinery and Equipment 3,839,908 818,196 0 INVESTMENT IN GENERAL FIXED ASSETS $ 11,805,159 $ 982,728 $ 0 ~ ~ Balance December 31, 1999 c c c c ~ ~ $ 3,970,750 3,194,450 964,583 4,658,104 $ 12,787,887 ~ ~ ~ C = !lII\ ~ ~ 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 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 of the government should be recorded and accounted for in a separate self-balancing group of accounts titled the "General Long-Term Debt Group of Accounts." This debt group will include, in addition to conventional general obligation bonds, time warrants and notes which have a maturity of more than one year form date of issuance. CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT ~ ~ iIIl ~ ... AMOUNTS AVAILABLE AND TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG-TERM DEBT December 31 1999 1998 Amount Available in Debt Service Funds $ 8,785,678 21,187,957 $ 29,973,635 Amounts to be Provided GENERAL LONG-TERM DEBT Special Assessments on City Property $ 96,597 227,038 29,650,000 $ 29,973,635 Compensated Absences Payable Bonds and Certificates of Indebtedness Payable $ 7,759,585 19,888,284 $ 27,647,869 ~ C ~ C $ 118,595 179,274 27,350,000 $ 27,647,869 ~ Ii. c !!II I;.; , .. III li.J ~ llII c c c ~ c 77 ~ ii.j ~ I I I I 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 1999: Net Tax Capacity General Fund Bond Funds Watershed Levy $ 14,605,633 TAXES PAYABLE IN 1998: Net Tax Capacity General Fund Bond Funds Watershed Levy $ 13,887,786 Tax Capacity Rate 20.605 2.687 0.213 23.505 Tax Capacity Rate 19.179 2.426 0.219 21.824 ~ ;. I .. ~ ~ r .. Net Levy ~ ~ ~ .. $ 3,208,232 418,392 14,090 $ 3,640,714 r .. ~ iii .. I, . iIIj Net Levy c c $ 2,832,312 358,178 14,090 $ 3,204,580 ~ ~ [ r III 78 [ ~ L C ~ ~ c I I I I I I I I I I I I I I I I I I I STATISTICAL INFORMATION ~ ~ ~ ~ ~ [ ~ r II ~ ~ ~ ~ ~ .. ~ r III ,.. <, I' ill [ ,. I,i III [ [ ~ ~ w.. I I I Licenses Fiscal and Year Taxes Permits I 1990 $ 911,255 .$ 212,793 1991 1,017,774 230,298 I 1992 1,107,808 430,024 1993 1,241,114 470,371 I 1994 1,472,108 410,733 1995 1,810,213 410,212 I 1996 2,180,470 390,327 1997 2,383,965 456,413 I 1998 2,804,065 694,809 1999 3,125,776 609,344 I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FUND REVENUES BY SOURCE Years 1989 Through 1999 Intergovernmental Charges for Fines and Other Revenue Services Forfeits Revenue Total $ 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 5,805,370 864,985 754,629 78,396 267,965 5,701,095 79 CITY OF ANDOVER, MINNESOTA GENERAL FUND EXPENDITURES BY FUNCTION Years 1990 Through 1999 Fiscal General Public Public Year Government Safety Warks Sanitation 1990 $ 593,778 $ 754,914 $ 307,046 $ 29,168 1991 579,797 805,393 374,138 14,831 1992 672,936 908,312 442,176 28,976 1993 720,178 937,371 520,802 36,904 1994 804,726 970,174 625,805 51,522 1995 932,460 1,060,210 637,551 34,795 1996 1,068,585 1,320,680 947,472 60,517 1997 1,252,047 1,409,087 1,044,183 95,632 1998 1,551,410 1,528,282 1,005,394 101,039 1999 1,700,086 1,820,436 1,363,875 119,957 ~ ~ Parks and ~ Recreation C $ 261,449 245,097 m .. 204,267 232,809 ~ 294,158 ~ 329,416 455,517 C 383,059 ~ 461,131 579,916 ~ ~ ~ C ~ ~ C C C ' , ~ I I I Economic Recycling Development Unallocated I $ 39,567 $ 14,289 $ 129,589 I 46,771 17,447 72,521 39,622 17,659 77 ,060 I 50,461 22,836 53,691 I 49,574 21,916 86,278 58,260 22 93,546 I 55,170 0 154,085 62,281 0 212,503 I 76,773 0 75,950 I 88,307 0 97,032 I I I I I I I I I Total $ 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 5,769,609 80 CITY OF ANDOVER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Years 1990 Through 1999 Percentage Collection Percentage Collection of Total of Current of Levy of Prior Total Collections Year Total Levy Year's Levy Collected Years' Levy Collections to Levy 1990 $ 993,164 $ 967,055 97.37 % $ 22,178 $ 989,233 99.60 % 1991 1,079,510 1,054,361 97.67 21,936 1,076,297 99.70 1992 1,482,416 1,440,883 97.20 22,028 1,462,911 98.68 1993 1,588,431 1,556,622 98.00 31,536 1,588,158 99.98 1994 1,806,293 1,774,507 98.24 43,566 1,818,073 100.65 1995 2,139,278 2,114,587 98.85 44,084 2,158,671 100.91 1996 2,083,031 2,075,336 99.63 29,231 2,104,567 101.03 1997 2,332,211 2,306,999 98.92 27,249 2,334,248 100.09 V 1998 2,698,871 2,632,772 97.55 27,994 2,660,766 98.59 1999 3,099,461 2,960,839 95.53 30,301 2,991,140 96.51 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Years 1990 Through 1999 Percentage Collection Percentage Collection of Total of Current of Levy of Prior Total Collections Year Total Levy Year's Levy Collected Years' Levy Collections to Levy 1990 $ 1,620,500 $ 1,509,902 93.18 % $ 210,132 $ 1,720,034 106.14 % 1991 1,450,030 1,249,889 86.20 38,964 1,288,853 88.88 1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34 1993 816,859 793,128 97.09 68,760 861,888 105.51 1994 557,611 505,500 90.65 44,004 549,504 98.55 1995 569,629 517,981 90.93 28,672 546,653 95.97 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 1998 540,783 458,655 84.81 19,787 478,442 88.47 �I 1999 472,647 444,080 93.96 38,568 482,648 102.12 Note: Tax levy is net of amounts paid by the State of Minnesota through Homestead and Agricultural Credit Aid (HACA) and Equalization Aid. 81 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 31, 2000 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 31,1999, and have issued our report thereon dated March 31, 2000. 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 of the United States. Because the City does not maintain fixed asset records which provide complete accounting control over the quantities and cost ofits general fixed assets we issued a qualified opinion on the City's general purpose financial statements. Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of the Council in the financial statements. Reportable conditions are described on the following page: 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 consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material 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 31, 2000. This report is intended solely for the information and use of management and state regulatory agencies and is not intended to be and should not be used by anyone other than these specified parties. ~ 83 c ~ ~ ~ C C C.' , , , , C ~ ~ ~ ~ ~ ~ ~J<.., i)~w.e/~tvU; i/~I L-I-d. Kern, DeWenter, Viere, Ltd. St. Cloud, Minnesota 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 31, 2000 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, 1999, and have issued our report thereon dated March 31, 2000. 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 ofthe 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, Mirmesota, complied with the material terms and conditions of applicable legal prOVISIOns. This report is intended solely for the use of management and state regulatory agencies and is not intended to be and should not be used by anyone other than these specified parties. j{-Vi.,Jl.,.1 &W~lL-t.(.A..), tAt. ~, L-+c:!. Kern, DeWenter, Vi ere, Ltd. St. Cloud, Minnesota 84 ~ ~ CITY OF ANDOVER, MINNESOTA FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES ~ ~ CURRENT YEAR FINDINGS: None PRIOR YEAR FINDINGS: None ~ ~ .. r' .. ~ . ~ ~ ~ ~ c ~ c c ~ IIIIi c c c c ~ 85 ~ ~