The URL can be used to link to this page

Home My WebLink About2000 CAFR I ; C I a I m a c m c c c ~ I I I ~ I CITY OF ANDOVER, MINNESOTA ANOKA COUNTY AUDITED FINANCIAL STATEMENTS As of December 31, 2000 ~ -0 ~ ~ ~ w c ~ ~ w w ~ m I.j ~ ~ ~ c c c C I ~ I ~ a a c m c c c C I = C I m I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS ELECTED OFFICIALS AND ADMINISTRATION ..................................................... INDEPENDENT AUDITORS' REPORT ....................................................................... GENERAL PURPOSE FINANCIAL STATEMENTS - Combined Balance Sheet - All Fund Types and Account Groups............................. Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Govermnental 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 ................................. ................ ........... .......... ....... ..... ... Right-of-Way Management/Utility Fund ...................................................... Capital Equipment Reserve Fund .................................................................. Developer Sealcoating Fund... ................................ ................................. ...... Oak Wilt Suppression Fund........................................................................... Debt Service Funds - Combining Balance Sheet....................... .............................................. ............... Combining Statement of Revenues, Expenditures and Changes in Fund Balance.............................................................................................................. . Capital Projects Funds - Combining Balance Sheet............. ....................................................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balance......................................... .......................... ............................................ 1 2 4 5 6 7 8 9 38 39 47 48 49 50 51 52 53 54 55 56 57 58 59 61 63 65 ~ c c ~ c o o c c ~ .; ~ ~ ~ ~ c c o o c o ~ c c ~ c c c c c ; C ! a = c c = C I CITY OF ANDOVER, MINNESOTA TABLE OF CONTENTS (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - (Continued) Enterprise Funds - Combining Balance Sheet............. ............................. .......................................... 67 Combining Statement of Revenues, Expenses and Changes in Retained Earnings .............................................................................................. 68 Combining Statement of Cash Flows .................................................................. 69 Comparative Balance Sheet - Water Fund........................................................... 70 Statement of Revenues, Expenses and Changes in Retained Earnings- Water Fund... ................................................................................... ................... 71 Comparative Balance Sheet - Sewer Fund........................................................... 72 Statement of Revenues, Expenses and Changes in Retained Earnings - Sewer Fund .. ..................................................................... ................................. 73 Internal Service Funds - Combining Balance Sheet... .................. ..................................................... .......... 74 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ..... .................... ...... .......... ................................................. ............ ....... 75 Combining Statement of Cash Flows .................................................................. 76 Combining Balance Sheet.. .................................................................................. Agency Funds - Combining Balance Sheet.. .............. ............................................. .............. ......... 77 Statement of Changes in Assets and Liabilities - Agency Funds ........................ 78 General Fixed Assets Account Group - Statement of Changes in General Fixed Assets ................................................... 79 General Long-Term Debt Account Group - Statement of General Long-Term Debt ............................................................... 80 SUPPLEMENTARY INFORMATION - Schedule of Tax Capacity Rates and Levies.............................................................. 81 STATISTICAL INFORMATION- General Fund Revenues by Source............................................................................ 82 General Fund Expenditures by Function ................................................................... 83 Property Tax and Special Assessment Levies and Collections ................................. 84 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 .................................................................. 85 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA STATUTES ..................................................................................................................... 87 FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES ............................... 88 o o c c o c c o o o m .. c m .. m .. w o M'\ ~ C C I I C a c a ~ c a c a I a D c C c C I CITY OF ANDOVER, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31,2000 Year Term of Office Expires Elected Officials Position J.E. McKelvey Don Jacobson Julie Johnson* Mike Knight Ken Orttel Julie Trude* Tony Howard* Mayor Councilmember Councilmember Councilmember Councilmember Councilmember Interim Councilmember 2001 2003 2003 2005 2005 2003 2000 Appointed Officials Richard Fursman** Dave Carlberg** Jim Dickinson Shirley Clinton Victoria V olk City Administrator Interim City Administrator Finance Director Treasurer Clerk Appointed Appointed Appointed Appointed Appointed * Julie Johnson resigned August 15,2000. Tony Howard was appointed to fill her position, effective August 15,2000, until the City held an election. Julie Trude was elected to fill the position and took office November 21,2000. * Resigned during 2000, Dave Carlberg was appointed Interim City Administrator. 1 c ~ ~ c c o ~ ~ c ~ C lII\ ~ ~ I.j w ~ ~ w. ~.'. ~ c c w c I a c ! C ~ C C ~ C I I ~ I C C ~ C I ~D~I Kern, DeWenter, Viere, Ltd. _~ 'V'" Certified Public Accountants INDEPENDENT AUDITORS' REPORT March 30, 2001 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, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose fin.~cial statement presentation. We believe that our audit provides a reasonable basis for our oplillon. In our opinion, 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, 2000, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2001 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of a Government Auditing Standards audit, and in considering the results of the audit, this report should be read along with the auditors' report on the financial statements. . 7100 Northland Circle No., Suite 119 Minneapolis, MN 55428-1500 763-537-3011 . Fax: 763-537-9682 220 Park Avenue South, P.o. Box 1304 51. Cloud, MN 56302 320-251-7010 · Fax: 320-251-1784 2 www.kdv.com ~ c m c ~ ~ o c ~ c ~ c c c ~ I. c o r-1 .. c c I C a I a ~ I C a a a c a a c ; a c 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 of the City of Andover, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The statistical information as listed in the table of contents is not necessary for a fair presentation ofthe general purpose financial statements, but is presented as additional analytical data. This information has not been subjected to any audit procedures and, accordingly, we express no OpInIOn. K.(.A~,hM~t-w, V~, L-I-d. Kern, DeWenter, Vi ere, Ltd. St. Cloud, Minnesota 3 m I.j CITY OF ANDOVER, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 2000 ASSETS AND OTHER DEBITS Assets: Cash and Investments (Including Cash Equivalents) Taxes Receivable - Delinquent Special Assessments Receivable - Deferred Delinquent Accounts/Loans Receivable Interest Receivable Due from Other Governmental Units Due from Other Funds Inventory Prepaid Items Property, Plant and Equipment - Net Other Debits: Amount Available in Debt Service Fund Amount to be Provided for Retirement of General Long-Term Debt TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts Payable Accrued Items Contracts Payable Due to Other Governmental Units Deposits Payable Developer Advances Deferred Revenue Due to Other Funds Special Assessments on City Property Bonds and Certificates Payable Total Liabilities Equity and Other Credits: Investment in General Fixed Assets Contributed Capital Retained Earnings - Unreserved Fund Balance (Deficit) - Reserved Unreserved - Designated Undesignated Total Equity and Other Credits TOTAL LIABILITIES, EQUITY AND OTHER CREDITS m.. ~ Governmental Fund Types Special Debt Capital General Revenue Service Proj ects $ 2,148,692 $ 1,839,034 $ 7,916,060 $ 4,543,703 53,544 432 29,239 0 46 0 3,460,908 2,059,075 257 0 11,514 1,878 51,364 4,807 0 87,513 9,497 10,808 49,119 33,394 111,060 3,202 15,593 104,304 613,702 89,595 2,306,557 2,897,769 62,642 0 0 0 3,267 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 3,054,071 $ 1,947,878 $ 13,788,990 $ 9,727.636 ~ ~ w 1'1\ ~ C ~ ~ ~ ~ ~ $ 168,046 $ 18,128 $ 0 $ 161,593 136,438 4,855 0 0 0 0 0 0 12,954 0 0 0 0 0 0 0 0 0 713,842 512,107 53,847 493,050 3,501,661 2,140,076 0 39,977 2,166,845 3,963,155 0 0 0 0 0 0 0 0 371,285 556,010 6,382,348 6,776,931 0 0 0 0 0 0 0 0 0 0 0 0 65,909 0 7,453,536 0 2,583,650 0 0 4,486,257 33,227 1,391,868 (46,894) (1,535,552) 2,682,786 1,391,868 7,406,642 2,950,705 $ 3,054,071 $ 1,947,878 $ 13,788,990 $ 9,727.636 ~ C W ~ C C ~ The notes to the financial statements are an integral part of this statement. 1"\ III u a c C Proprietary Fiduciary Fund Types Fund Type Account Groups General Totals I Internal General Long-Term (Memorandum Only) Enterprise Service Agency Fixed Assets Debt 2000 1999 C $ 2,609,875 $ 146,797 $ 691,810 $ 0 $ 0 $ 19,895,971 $ 17,976,597 0 0 0 0 0 83,215 362,243 ~ 8,462 0 0 0 0 5,528,491 5,095,280 2,222 0 0 0 0 15,871 71,489 517,312 718 0 0 0 661,714 618,311 11,857 390 5,184 0 0 120,249 97,967 ; 1,194 0 0 0 0 235,353 475,531 448,590 6,260 0 0 0 6,362,473 2,330,411 28,338 23,134 0 0 0 114,114 77,879 C 41,379 32,468 0 0 0 77,114 42,876 26,496,453 0 0 17,249,031 0 43,745,484 39,194,266 0 0 0 0 7,406,642 7,406,642 8,611 ,985 a 0 0 0 0 23,701,551 23,701,551 21,361,650 $ 30,165.682 $ 209,767 $ 696,994 $ 17,249.031 $ 31,108,193 $ 107,948,242 $ 96,316,485 C $ 18,814 $ 7,770 $ 4,293 $ 0 $ 0 $ 378,644 $ 359,438 ! 54,429 5,915 0 0 249,640 451,277 408,816 0 0 0 0 0 0 110,321 0 0 0 0 0 12,954 22,188 0 0 524,020 0 0 524,020 524,158 C 0 0 0 0 0 1,225,949 937,109 8,775 0 0 0 0 6,197,409 6,053,971 23,815 0 168,681 0 0 6,362,473 2,330,411 a 0 0 0 0 38,553 38,553 96,597 0 0 0 0 30,820,000 30,820,000 29,650,000 105,833 13,685 696,994 0 31,108,193 46,011,279 40,493,009 a 0 0 0 17,249,031 0 17,249,031 12,787,887 26,285,503 0 0 0 0 26,285,503 26,159,388 C 3,774,346 196,082 0 0 0 3,970,428 3,016,849 0 0 0 0 0 7,519,445 8,835,792 C 0 0 0 0 0 7,069,907 6,223,567 0 0 0 0 0 (157,351 ) (1,200,007) 30,059,849 196,082 0 17,249,031 0 61,936,963 55,823,476 C $ 30,165,682 $ 209,767 $ 696,994 $ 17,249,031 $ 31,108.193 $ 107,948,242 $ 96,316,485 C 4 I CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended December 31, 2000 Govermnental Fund Types Special Debt General Revenue Service REVENUES: General Property Taxes and Tax Increments Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines Miscellaneous Total Revenues $ 3,571,186 $ 19,454 $ 1,265,831 0 0 2,434,898 623,662 0 0 969,317 25,745 106,136 900,235 97,953 0 82,443 0 0 309,237 229,867 614,819 6,456,080 373,019 4,421,684 EXPENDITURES: Current - General Govermnent Public Safety Public Works Sanitation Parks and Recreation Recycling Econornic Development Miscellaneous Capital Outlay Debt Service Total Expenditures 1,840,644 0 0 1,968,765 0 0 1,591,137 66,184 0 100,073 0 0 538,523 0 0 91,071 0 0 0 137,105 0 133,321 0 0 0 202,375 0 0 0 5,972,315 6,263,534 405,664 5,972,315 192,546 (32,645) (1,550,631) 81,961 370,100 1,793,151 (370,100) (173,211) (1,480,439) 0 0 32,576 0 103,456 0 (288,139) 300,345 345,288 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) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 267,700 1,124,168 $ 1,391,868 (1,205,343) 8,611,985 $ 7,406,642 (95,593) 2,778,379 $ 2,682,786 FUND BALANCE - January 1 FUND BALANCE - December 31 The notes to the financial statements are an integral part of this statement. u c c ~ ~ -- ~ C C C C ~ * ~ ~ C ~ ~ ~ .. ~ u.i ~ liIi ,. ~ = ~ c a Totals Capital (Memorandum Only) Projects 2000 1999 I $ 410,646 $ 5,267,117 $ 4,328,006 1,488,702 3,923,600 4,191,159 I 0 623,662 609,344 1,092,491 2,193,689 1,112,971 0 998,188 771,647 0 82,443 78,396 ; 1,753,066 2,906,989 1,740,746 4,744,905 15,995,688 12,832,269 ~ 0 1,840,644 1,700,086 a 0 1,968,765 1,820,436 0 1,657,321 1,449,129 0 100,073 119,957 ~ 0 538,523 579,916 0 91,071 88,307 0 137,105 112,480 I 0 133,321 97,032 9,124,852 9,327,227 8,817,471 0 5,972,315 5,152,209 a 9,124,852 21,766,365 19,937,023 (4,379,947) (5,770,677) (7,104,754) a 606,251 2,851,463 1,975,782 a (731,752) (2,755,502) (1,809,437) 5,762,424 5,795,000 6,012,930 348,909 452,365 461,817 a 5,985,832 6,343,326 6,641,092 a 1,605,885 572,649 (463,662) D 1,344,820 13,859,352 14,323,014 $ 2,950,705 $ 14,432,001 $ 13,859,352 C 5 I CITY OF ANDOVER, MINNESOTA C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND C CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended December 31, 2000 0 General Fund C Over (Under) Budget Actual Budget ~ REVENUES: General Property Taxes and and Tax Increments $ 3,478,505 $ 3,571,186 $ 92,681 C Licenses and Permits 579,134 623,662 44,528 Intergovermnental 941,975 969,317 27,342 Charges for Services 780,693 900,235 119,542 Fines 52,000 82,443 30,443 C Miscellaneous 286,390 309,237 22,847 Total Revenues 6,118,697 6,456,080 337,383 EXPENDITURES: ~ Current - General Govermnent 1,924,982 1,840,644 (84,338) W Public Safety 2,016,781 1,968,765 (48,016) Public Works 1,864,566 1,591,137 (273,429) Sanitation 162,507 100,073 (62,434) C Parks and Recreation 550,869 538,523 (12,346) Recycling 95,628 91,071 (4,557) Economic Development 0 0 0 Miscellaneous 168,312 133,321 (34,991 ) m Capital Outlay 0 0 0 ill Total Expenditures 6,783,645 6,263,534 (520,111) EXCESS OF REVENUES OVER (UNDER) C EXPENDITURES (664,948) 192,546 857,494 ~ OTHER FINANCING SOURCES (USES): ~ Operating Transfers In 659,679 81,961 (577,718) Operating Transfers Out (370,100) (370,100) 0 m Proceeds from Sale of Property 0 0 0 I.j Total Other Financing Sources (Uses) 289,579 (288,139) (577,718) EXCESS OF REVENUES AND OTHER C SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (375,369) (95,593) $ 279,776 C FUND BALANCE - January 1 2,778,379 FUND BALANCE - December 31 $ 2,682,786 W ~ The notes to the financial statements are an integral part of this statement. W a 0 0 Totals Special Revenue Funds (Memorandum Only) Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget $ 21,430 $ 19,454 $ (1,976) $ 3,499,935 $ 3,590,640 $ 90,705 0 0 0 579,134 623,662 44,528 5,000 25,745 20,745 946,975 995,062 48,087 59,850 97,953 38,103 840,543 998,188 157,645 0 0 0 52,000 82,443 30,443 152,756 229,867 77,111 439,146 539,104 99,958 239,036 373,019 133,983 6,357,733 6,829,099 471,366 0 0 0 1,924,982 1,840,644 (84,338) 0 0 0 2,016,781 1,968,765 (48,016) 93,572 66,184 (27,388) 1,958,138 1,657,321 (300,817) 0 0 0 162,507 100,073 (62,434) 0 0 0 550,869 538,523 (12,346) 0 0 0 95,628 91,071 (4,557) 119,973 137,105 17,132 119,973 137,105 17,132 0 0 0 168,312 133,321 (34,991) 500 202,375 ,201,875 500 202,375 201,875 214,045 405,664 191,619 6,997,690 6,669,198 (328,492) 24,991 (32,645) (57,636) (639,957) 159,901 799,858 158,998 370,100 211,102 818,677 452,061 (366,616) (575,633) (173,211) 402,422 (945,733) (543,311) 402,422 32,818 103,456 70,638 32,818 103,456 70,638 (383,817) 300,345 684,162 (94,238) 12,206 106,444 $ (358,826) 267,700 $ 626,526 $ (734,195) 172,107 $ 906,302 1,124,168 3,902,547 $ 1,391,868 $ 4,074,654 6 c w m ~ ~ c w 7 II!I\ \.Ii W ~ ~ ~ c ~ ~. w. C ~ C ~ The notes to the financial statements are an integral part ofthis statement. c c c c a a a c I ! a ~ a I I C C C I CITY OF ANDOVER, MINNESOTA COMBINED STATEMENT OF CASH FLOWS- ALL PROPRIETARY FUND TYPES Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31,1999 Totals Internal (Memorandum Only) Enterprise Service 2000 1999 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income $ 278,085 $ 30,500 $ 308,585 $ 44,618 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 715,298 0 715,298 674,609 Change in Current Assets and Liabilities: (Increase) Decrease in Special Assessments 221 0 221 (8,462) (Increase) Decrease in Accounts Receivable (64,347) 5,673 (58,674) 3,764 Decrease in Due From Other Governmental Units 497 0 497 1,403 (Increase) Decrease in Inventory (10,755) (10,036) (20,791) 800 (Increase) in Prepaid Items (1,419) (32,468) (33,887) (1,838) Increase (Decrease) in Accounts Payable 2,946 (11,615) (8,669) 8,050 Increase (Decrease) in Accrued Items 4,969 (328) 4,641 26,587 (Decrease) in Due to Other Governmental Units 0 0 0 (484) Increase (Decrease) in Deferred Revenue (221) 0 (221 ) 8,462 Total Adjustments 647,189 (48,774) 598,415 712,891 Net Cash Provided (Used) by Operating Activities 925,274 (18,274) 907,000 757,509 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Advances from Other Funds 23,815 0 23,815 0 Advances to Other Funds (98,389) (6,260) (104,649) (468,611) Payments of Advances to Other Funds 118,410 0 118,410 0 Transfers from Other Funds 0 0 0 0 Transfers to Other Funds (95,961) 0 (95,961) (166,345) Net Cash Used by Noncapital Financing Activities (52,125) (6,260) (58,385) (634,956) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Fixed Assets (86,205) 0 (86,205) (249,322) CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income 141,828 4,662 146,490 144,244 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 928,772 (19,872) 908,900 17,475 CASH AND CASH EQUIVALENTS - January 1 1,681,103 166,669 1,847,772 1,830,297 CASH AND CASH EQUIVALENTS - December 31 $ 2,609,875 $ 146.797 $ 2,756,672 $ 1.847,772 The notes to the fmancial statements are an integral part of this statement. 8 ~ .. CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 !Ill ~ ~ .. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ~ A. Accounting Policies ofthe Citv The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to govermnents. With respect to proprietary activities, the City has applied all applicable Govermnental Accounting Statement Board (GASB) pronouncements as well as Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) Opinions issued on or before November 30, 1989 unless those pronouncements conflict with or contradict GASB pronouncements. ~ l.j ~ ~ B. Financial Reporting Entitv The financial statements present the City and its component units. The City includes all funds, account groups, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements ofthe City because ofthe significance oftheir operational or financial relationships with the City. ~ l.I ~ ~ The City is considered financially accountable for a component unit if it appoints a voting majority ofthe 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, o ~ ~ 11IIII ~ As a result of applying the component unit definition criteria above, it has been determined the City has one blended component unit. Blended Component Unit - The Andover Economic Development Authority (EDA) is a legal entity separate from the City. Although legally separate, the EDA is reported as if it were part of the primary govermnent because its governing body is substantively the same as the governing body ofthe primary govermnent. ,.. [i .. ~ C. Fund Accounting ~ I' .. 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. Govermnent 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. c w 9 ~ ~ C I I I I I I I I I I I I I B I a I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Accounting (Continued) Govermnental Funds General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Proiects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). ProprietarY Funds Entemrise Funds are used to account for operations (a) that are financed and operated in a mamIer 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. 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. The Risk Management Fund is used to partially self-insure workers compensation claims. Fiduciarv Funds Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other govermnents and/or other funds. The City's Agency Funds are custodial in nature and do not involve measurement of results of operations. 10 c CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 ~ iii ~ I.j NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ~ . 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 govermnental 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. c c !III ~ Fixed assets used in govermnental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in govermnental 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. ~ C 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. a ~ .. Because oftheir spending measurement focus, expenditure recognition for govermnental fund types is limited to exclude amounts represented by non-current liabilities. Since they do not affect net current assets, long-term liabilities expected to be financed from govermnental funds are accounted for in the General Long-Term Debt Account Group, not in the govermnental funds. Such long-term amounts are not recognized as govermnental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long- Term Debt Account Group. j !III ~ The two account groups, General Fixed Assets and General Long-Term Debt, are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. r'1 I , . 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. ~ I.j c 11 o c c I I I I I I I I I I I I I I I I I a I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Measurement Focus. Fixed Assets and Long-Term Liabilities (Continued) Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against operations. Accumulated depreciation is reported on the proprietary fund balance sheet. Depreciation has been provided over the assets' estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings and Improvements Equipment 5-50 Years 5-20 Years E. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing ofthe measurement made, regardless of the measurement focus applied. All govermnental 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. Major revenues that are susceptible to accrual include property taxes, intergovermnental 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. The City considers property taxes as available ifthey are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other govermnental fund revenues. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liabilities are incurred. Exceptions to this rule include sick pay and principal and interest on general long-term debt, which are recognized when due. All proprietary funds are accounted for using the accrual basis of accounting; revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility service receivables are recorded at year end. 12 !'II ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 ~ IIj ~. .. 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. c c o c NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Basis of Accounting (Continued) 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. . ~ lII\ ~ 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 III The City follows these procedures in establishing the budgetary data reflected in the financial statements: c I. 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. c c 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. c ~ .. c c lII\ ~' 13 u 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Budgetarv Accounting (Continued) 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. Long-term investments are stated at fair value. Short-term investments, such as commercial paper and banker's acceptances, are reported as amortized cost. For purposes of the Statement of Cash Flows of proprietary fund types, cash equivalents are defined as short-term, highly liquid investments that are both: a. readily convertible to known amounts of cash, or b. so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City's policy considers cash equivalents to be those that meet the above criteria and have original maturities of three months or less. 1. Taxes Receivable Delinquent taxes receivable represent the past six years of uncollected tax levies. 14 r: ... CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 ~ .. ~ I .. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ,. .. J. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the county or upon completion of the project costs and passage of a Council resolution with the actual certification taking place subsequent to year-end. The corresponding revenue from the delinquent (unremitted) and deferred (certified but not yet levied) special assessments receivable is deferred until the year in which it becomes available (collected within 60 days of year-end). K. Due From/To Other Funds !II\ I . .. u c ~ Interfund receivables and payables are a result of various transactions between funds during the year. The balances outstanding at year end are classified as "due to/from other funds." ~ ... L. Inventories The inventories ofthe General Fund and the Proprietary Funds are stated at cost on the first- in, first-out basis. The General Fund accounts for inventory using the consumption method. General Fund inventory consists of signs and miscellaneous other items. Proprietary Funds inventory consists of water meters, miscellaneous parts and other items. ~ ~ M. Deferred Revenue lII\ ~ 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. ,. iii City employees earn vacation and sick pay accruing each payroll period. Unused vacation can be accrued by the employees up to a maximum of200 hours as of the anniversary date of the individual's employment with the City. In the govermnental 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. w c N. Compensated Absences c 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. c .~ ~ ,. iii 15 ~ 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Revenues. Expenditures and Expenses 1. Revenues Property taxes are recognized as revenue when measurable and available. Intergovermnental revenues are reported under the legal and contractual requirements of the individual programs. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues, except investment earnings, are recorded as revenues when received in cash because they are generally not measurable until then. Investment earnings are recorded when earned because they are measurable and available. 2. Property Tax Collection Calendar The City levies its property tax for the subsequent year during the month of December and it is certified to Anoka County. 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. 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. The County Auditor prepares 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 submits a list oftaxes to be collected on each parcel of property to the County Treasurer in January of each year. The County Treasurer collects all taxes and is required to mail copies of all personal property tax statements by April 15, and copies of all real estate tax statements by April 15, of each year. Property owners are required to pay one-half of their real estate taxes due by May 15 and the balance by October 15. 16 ~ ~ CITY OF ANDOVER, MINNESOTA ~ .. NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 c NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ~ I . O. Revenues. Expenditures and Expenses (Continued) 2. Property Tax Collection Calendar (Continued) ~ ~ 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. lII\ ~ C If the taxes are not paid by January 1, further penalties are added. Penalties and interest apply to both taxes and special assessments. There are some exceptions to the above penalties, but they are not material. Within 30 days after the tax settlement date, the County Treasurer is required to pay 70% of the estimated collections oftaxes and special assessments to the City Treasurer. The County Treasurer must pay the balance to the City Treasurer within 60 days after settlement, provided that after 45 days interest accrues at the rate of 8% per annum. c c 3. Expenditures !'II ~ Expenditure recognition for govermnental fund types includes only amounts represented by current liabilities. Since noncurrent liabilities do not affect net current assets, they are not recognized as govermnental fund expenditures or fund liabilities. They are reported as liabilities in the General Long-Term Debt Account Group. ~ .. ~ 4. Expenses Proprietary fund types recognize expenses when they are incurred. ~ P. Interfund Transactions m 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. ~I ~ 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. ~ c c 17 o I I I I a I a I I I I I I I I I a c I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. 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. R. 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 ACCOUNTABILITY A. Fund Deficits The following funds had deficit fund balances at December 31, 2000: Special Revenue Funds - Trail and Transportation Debt Service Funds - G.O. Equipment Certificate of 1999 Capital Projects Funds - Water Trunk Project Storm Sewer Project Unfinanced Projects State Aid Revolving Projects Kelsey Round Lake Park Project 1999 G.O. Equipment Certificate Total Capital Projects $ 89,603 46,894 124,893 104,362 1,163,405 116,853 9,177 16,862 $ 1,535,552 These deficits will be eliminated by transfers from other funds, collections of property tax levies or proceeds from bond issues. 18 ~, .. CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 ~ ~ NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY (Continued) ~ w.; B. Expenditures in Excess of Appropriations Expenditures exceeded appropriations in the following funds for the year ended December 31, 2000: ~ 'III Special Revenue Fund: EDA General Trail and Transportation Right-of-Way Management/Utility Capital Equipment Reserve Appropriations Expenditures ~ I , I.j $ 119,973 o o o $ 137,105 92,797 13,436 109,578 ~ .. lII\ I. NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Assets ~ t: I .. 1. Cash and Investments (Including Cash Equivalents) Cash balances ofthe City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota 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' ~ ~, U.J a. Deposits - Minnesota Statutes require that all deposits with [mancial institutions must be collateralized in an amount equal to 110% of deposits in excess of Federal Depository Insurance Corporation (FDIC) insurance. Category 1 includes deposits covered by FDIC and those deposits collateralized with securities held by the City or by its agent in the City's name. ~ I.r Category 1 2 3 Bank Balance Carrying Amount ~ ~ o Bank Accounts $ 456,464 $ 0 $ 0 $ 456,464 $ 333,991 ~ Ii.! ~ ~ ~ ~ ~ ... 19 o I I I I I a I I I I I a I I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 1. Cash and Investments (Including Cash Eauivalents) (Continued) b. Investments - Minnesota Statutes authorize the City to invest in obligations ofthe U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the forementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercial paper 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 umegistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. Fair Value and Carrying Amount $ 1,153,191 1,195,562 7,919,080 8,406,523 18,674,356 47,346 839,278 333,991 1,000 $ 19,895,971 20 Category 1 2 3 Negotiable CD's $ 1,153,191 State and Local Govermnent Securities 1,195,562 U.s. Govermnent Securities 7,919,080 Commercial Paper 8,406,523 Total Investments $ 18,674,356 $ 0 $ 0 o 0 o 0 o 0 $ 0 $ 0 Minnesota Municipal Investment Pool Open End Mutual Fund Total Deposits (Note 3 A.1.a.) Petty Cash Total Cash and Investments (Including Cash Equivalents) ~. ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 ~ ill ~ ~ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) c A. Assets (Continued) 1. Cash and Investments (Including Cash Equivalents) (Continued) b. Investments - (Continued) ~ ~ During the year ended December 31, 2000, the City had investment revenue of $ 1,413,386. ~ , I ~ 2. Flexible Benefit Plan ~ I .. The City offers a flexible benefit plan. The plan is a "cafeteria plan" under S 125 of the Internal Revenue Code. All employees who meet the eligibility requirements may participate in the plan. To be eligible, an employee must be regularly scheduled to work 30 hours per week. lII\ ~ ~ Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the plan for health and dental care, dependent care, and other qualifying insurance benefits. Payments are made from the plan to participating employees upon submitting a request for reimbursement of eligible expenses actually incurred by the participant. ~ I , .. All assets of the plan are held by the City. The plan is administered by the City for child care, out-of-pocket medical expense reimbursements and qualifying insurance premiums. ~ ~ All plan property and income attributable to that property is solely the property of the City, subject to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the eligible health care and dependent care expenses incurred by the participants. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 1'\ 1.1 .. c 3. Interfund Receivables and Pavables r-1 .. The following is a summary of interfund receivables and payables at December 31, 2000: 1'\ I,' .. . ~ ~ ~ ~ 21 c I I I I I I I I I I I I I I I I a ! I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 3. Interfund Receivables and Pavables (Continued) Fund Due From Due To General $ 613,702 $ 0 Special Revenue - Drainage and Mapping 10,817 0 Trail and Transportation 0 37,277 Capital Equipment Reserve 17,000 0 Oak Wilt Suppression Program 0 2,700 Developer Sealcoating 61,778 0 Debt Service - Certificates of Indebtedness 14,000 0 G.O. Improvement Bonds of 1985B 113,406 114,000 G.O. Improvement Refunding Bonds of 1986C/1997 0 703,845 G.O. Improvement Bonds of 1989/1996 569,875 307,000 G.O. Improvement Bonds of 1993A 822,831 575,000 G.O. Improvement Bonds of 1994C 21,560 0 G.O. Improvement Bonds of 1995A 13,601 0 G.O. Improvement Bonds of 1996C 0 420,000 G.O. Improvement Bonds of 1997 A 65,316 0 G.O. Improvement Bonds of 1997B 11 0,968 0 G.O. Equipment Certificate of 1999 0 47,000 G.O. Improvement Bonds of 1999C 575,000 0 Capital Projects - Water Trunk Project 514,025 646,668 Storm Sewer Project 0 105,000 Sewer Trunk Project 129,185 499,134 Unfinanced Projects 0 1,106,641 State Aid Revolving Projects 0 172,000 State Aid Projects 328,109 0 Tax Increment Projects 1,190,000 1,191,775 Park Dedication 0 20,036 Permanent Improvement Revolving 680,000 8,694 Kelsey Road Lake Park Project 0 9,200 .1999 G.O. Equipment Certificate 0 17,000 Improvement Bonds of 1999C Project 56,450 187,007 22 ------!- CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 3. Interfund Receivables and Pavables (Continued) Fund Due From Due To Enterprise - Water Sewer Internal Service - Central Equipment Maintenance Risk Management Agency Fund $ 116,590 332,000 6,129 131 o $ 7,000 16,815 o o 168,681 $ 6,362,473 Total $ 6,362,473 4. Fixed Assets A SUlllIDary of changes in the General Fixed Assets Account Group follows: Additions Disposals Balance and and Balance 1-1-00 Adjustments Adjustments 12-31-00 Land and Improvements $ 3,970,750 $ 0 $ 1,229,140 $ 2,741,610 Buildings and Improvements 3,194,450 4,996,847 0 8,191,297 Furniture and Equipment 964,583 112,353 0 1,076,936 Machinery and Equipment 4,658,104 581,084 0 5,239,188 Total General Fixed Assets $ 12,787,887 $ 5,690,284 $ 1,229,140 $ 17,249,031 ~, ~ " .. ~ ~ ~, .- ~ I .. .- ! .. 0 I- I II.' ~ .. ~ ~ ~ I .. /"" I. ~ .. ~ .. ~ . 0 C C 23 0 I I I I I I I I I I I I I I I I I a I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 4. Fixed Assets (Continued) A surmnary of proprietary fund type fixed assets at December 31,2000 is as follows: Water Sewer Total Furniture and Equipment $ 813,902 $ 168,111 $ 982,013 Machinery 986,172 163,319 1,149,491 Collection and Distribution System 13,330,422 18,300,530 31,630,952 Accumulated Depreciation (3,167,994) (4,098,009) (7,266,003) Net Fixed Assets $ 11,962,502 $ 14,533,951 $ 26,496,453 5. Loans Receivable As part of a development agreement entered into with a private developer in May, 1989, the City received a promissory note for $ 243,520. The note is to reimburse the City for the fiscal disparities' contributions the City lost due to the establishment of a tax increment financing district for the development project. The note bears an interest rate of5.50% and calls for 180 equal monthly payments to be made to the City through August, 2003. At December 31,2000, the remaining principal due of$ 79,123 is offset by deferred revenue as it is not available to finance current activities. B. Liabilities 1. Defined Benefit Pension Plans - Statewide a. Plan Description All full-time and certain part-time employees ofthe City of Andover are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire- fighters and peace officers who qualifY for membership by statute are covered by the PEPFF. 24 ~ I ' III CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 ~ .. ~ ~ 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 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. c 11I\ ~ Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the ammity 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. o ~ ~ ~ ~ ~ l.Ii 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. ,., . ~ ill ~ .. ~ ~ .~. .. ~ ~ 25 c I a = I C ~ I I I I I I a I ; I a ~ I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) I. Defined Benefit Pension Plans - Statewide (Continued) a. Plan Description (Continued) The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (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, oftheir 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, 2000, 1999, and 1998 were $ 103,062, $ 101,966, and $ 89,513, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ended December 31,2000,1999, and 1998 were $5,512, $ 5,773, and $ 5,950, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. 26 11\ , ' ~ CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 11\ , .. ,.. i I .. NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) . I ' . B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association ~ ~ a. Plan Description !Ill III Members ofthe City's volunteer fire department are members ofthe Andover Fire Fighters' Relief Association. The Association is a single-employer defined contribution plan that was established in 1979 and operates under the provisions of Minnesota Statutes ~69 and 424A, as amended. It is governed by a Board consisting of six officers and trustees elected by the members of the Association for three-year terms. The City Mayor, City Clerk, and Fire Chief are ex-officio members of the Board of Trustees. The payroll for City employees who are members of the Association for the year ended December 31,2000 was $ 152,037. The City's total payroll was $ 2,235,885. ~ ~ ,.. , .. .. ~ For financial reporting purposes, the Association's financial statements are not included in the City of Andover's financial statements because the Association is not a component unit ofthe City. ~ .. b. Pension Benefits ~ ~ Minnesota Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A firefighter who completes at least 20 years as an active member 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. c ~ .. The service pension prescribed by the Association's bylaws is a lump sum settlement equal to the amount in the individual member's account at the time of retirement. The individual member accounts are credited with an equal share of: any fire state-aid received by the Association, any municipal contributions to the Association, and any other assets of the Association's Special Pension Fund. ~ III ~ .. The bylaws of the Association also provide for a reduced service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60% of the pension as prescribed by the bylaws. This percentage increases 4% per year so that at 20 years of service, the full amount prescribed is paid. c o c c 27 ---i----- I I I I C a I I I I I a a I a I I a I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Firefighters Relief Association (Continued) b. Pension Benefits (Continued) A member of the Association who has completed 20 or more years of active service with the fire department prior to reaching age 50, has the right to retire from the department without forfeiting the right to a service pension. The member shall be placed on the deferred pension roll. Upon reaching age 50, the member may apply for the standard service pension as described above. The Association shall pay interest on the deferred service pension during the period of deferral. The interest rate will be compounded ammally, at the rate actually earned on the assets ofthe Special Pension Fund, not to exceed 5% per year. An active member ofthe Association who becomes disabled to the extent that a physician shall certify that such disability will permanently prevent the member from performing his duties in the Andover Fire Department, is entitled to a disability pension equal to the balance in the member's account after 100 days of disability. If a member who has received such a disability pension should subsequently recover and return to active duty in the Andover Fire Department, any amount paid to him as a disability pension shall be deducted from his service pension accrued at the time of such disability. Upon the death of any member of the Association who is in good standing at the time of death, the Association shall pay the member's spouse, children, or estate the balance ofthe member's account at the date of payment. The City of Andover has the power to levy property taxes at the direction and for the benefit ofthe Association, and passes through state aids allocated to the plan, in accordance with enabling state statutes. c. Contributions Required and Contributions Made The City's contributions under the plan, determined by the Association's Board of Trustees and ratified by the City Council in accordance with enabling state statutes is $ 750 per member per year. In 2000, the City contributed $ 104,082 to the Association, consisting of $ 64,082 state aid and $ 40,000 fulfilling the City's $ 750 per member contribution obligation for the year ended December 31,2000. The City's contribution represents 26.3% of covered payroll. 28 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 3. Deferred Revenues Deferred revenues at December 31, 2000 are summarized below: Special Debt Capital General Revenue Service Projects Enterprise Total Taxes Receivable - Delinquent $ 53,544 $ 432 $ 29,239 $ 0 $ 0 $ 83,215 Special Assessments Receivable - Deferred 46 0 3,460,908 2,059,075 0 5,520,029 Delinquent 257 0 11,514 1,878 0 13,649 Loans Receivable 0 0 0 79,123 0 79,123 Deposits and Other 0 492,618 0 0 8,775 501,393 Total $ 53,847 $ 493,050 $ 3,501,661 $ 2,140,076 $ 8,775 $ 6,197,409 4. Long-Term Debt The following is a surmnary oflong-term debt transactions of the City for the year ended December 31, 2000: Balance Balance January 1,2000 Additions Deletions December 31, 2000 General Obligation Bonds $ 505,000 $ 0 $ 265,000 $ 240,000 General Obligation Revenue Bonds 2,275,000 0 45,000 2,230,000 Special Assessment Bonds 16,010,000 3,350,000 3,575,000 15,785,000 Tax Increment Bonds 9,635,000 2,445,000 565,000 11,515,000 Certificates of Indebtedness 1,225,000 0 175,000 1,050,000 Assessments on City Property 96,597 0 58,044 38,553 Compensated Absences Payable 227,038 22,602 0 249,640 $ 29,973,635 $ 5,817,602 $ 4,683,044 $ 31,108,193 29 ~. .. I'" -- ~ * ~ .. o ~ .. ~ ~ ~ ~ ~ ~ c ~ I. ! . ~ ~ ~ 11II\ ~ 11II\ I..i III I r .. ~ 1: i . ~ , .. r-1 .. I I I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) Bonds payable at December 31,2000 are comprised of the following issues: I General Obligation Bonds: G.O. Refunding Bonds of 1998 I General Obligation Revenue Bonds: Public Project Revenue Bonds of 1997 I Special Assessment Bonds: G.O. Improvement Bonds of Series 1977A G.O. Improvement Bonds of Series 1993A G.O. Improvement Bonds of Series 1994C G.O. Improvement Bonds of 1995A G.O. Crossover Refunding Bond ofl996 G.O. Improvement Bonds of 1996 G.O. Improvement Bonds of Series 1997 A G.O. Improvement Bonds of Series 1997B G.O. Improvement Bonds of 1999 G.O. Permanent Improvement Revolving Bonds, Series 2000B Total Special Assessment Bonds I I I I I I I ! a I Maturity Interest Rate Issue Date Date Original Issue Outstanding Retired 3.60-3.75% 12-01-98 07-01-01 $ 760,000 $ 520,000 $ 240,000 4.50-5.90% 09-01-97 12-01-16 2,350,000 120,000 2,230,000 5.00% 02-01-77 01-01-06 1,215,000 875,000 340,000 4.00-4.75% 08-01-93 08-01-03 3,650,000 2,555,000 1,095,000 5.05-5.75% 10-01-94 02-01-06 1,140,000 450,000 690,000 4.85-5.30% 07-01-95 02-01-06 2,605,000 890,000 1,715,000 4.15-4.50% 06-01-96 08-01-01 1,220,000 920,000 300,000 4.15-5.00% 06-01-96 08-01-06 600,000 220,000 380,000 4.20-4.80% 05-01-97 12-01-02 3,120,000 1,910,000 1,210,000 3.90-4.70% 07-01-97 12-01-05 6,315,000 2,430,000 3,885,000 3.75-4.40% 10-01-99 12-01-04 3,525,000 705,000 2,820,000 4.20-4.375% 09-01-00 02-01-07 3,350,000 0 3,350,000 26,740,000 10,955,000 15,785,000 30 lIII. 1.1 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 /II! ~ ~ ~ NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) c B. Liabilities (Continued) 4. Long-Term Debt (Continued) Tax Increment Bonds: 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 .G.O. Tax Increment Bonds of Series 2000A Total Tax Increment Bonds Certificates of Indebtedness: 1999 G.O. Equipment Certificate Assessments on City Property Compensated Absences Payable TOTAL ~ i . .. Maturity Interest Rate Issue Date Date Original Issue Retired lIII I Outstanding ~ 6.97-7.87% 05-01-94 05-01-04 $ 885,000 $ 540,000 $ 4.50-5.60% 10-01-95 02-01-13 6,055,000 630,000 4.75-5.40% 06-01-96 08-01-12 2,055,000 255,000 4.00-5.00% 06-01-99 12-01-12 1,500,000 0 6.75-7.10% 09-01-00 02-01-10 2,445,000 0 12,940,000 1,425,000 ~ 345,000. 5,425,000",. 1,800,00~ 1,500,000 ~ 2,445,00~ 11,515,00<0 3.70-4.00% 06-01-99 02-01-04 1,050,000 0 1,050,00~ ~ 6.25-10.70% N/A 2001 338,174 299,621 38,553 N/A N/A N/A 249,640 0 249,64~ $ 44,427,814 $ 13,319,621 $ 31,108,193~ ~ . U ~ - C ~ ~ C 31 0 - --- - I I I I a I I I I I I I I I a I I I I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Long-Term Debt (Continued) The annual requirements to amortize all bonded debt outstanding as of December 31, 2000 including interest payments of$ 8,232,076 are: General General Obligation Special Tax Certificates Year Ending Obligation Revenne Assessment Increment of December 31 Bonds Bonds Bonds Bonds Indebtedness Total 2001 $ 249,000 $ 181,005 $ 3,957,194 $ 1,086,850 $ 261,788 $ 5,735,837 2002 0 183,310 3,516,449 1,188,068 277,813 5,165,640 2003 0 190,310 3,387,175 1,215,472 287,600 5,080,557 2004 0 196,740 2,958,298 1,318,739 311,100 4,784,877 2005 0 202,580 2,174,540 1,403,155 0 3,780,275 Thereafter 0 2,632,615 2,035,165 9,837,110 0 14,504,890 $ 249,000 $ 3,586,560 $ 18,028,821 $ 16,049,394 $ 1,138,301 $ 39,052,076 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 of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31,2000, the following revenue bonds were outstanding: Date of Original Project Issue Issue Retired Downtown Center 07-15-97 $ 5,645,000 $ 910,000 Downtown Center 07-15-97 1,250,000 245,000 Presbyterian Homes of Andover, Inc. 12-01-98 13,980,000 210,000 Presbyterian Homes of Andover, Inc. 12-01-98 720,000 0 Total $ 21,595,000 $ 1,365,000 Outstanding December 31,1999 $ 4,735,000 1,005,000 13,770,000 720,000 $ 20,230,000 32 ~ ! I . CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 ~ , I. ~ ~ Fund equity balances are classified as follows to reflect the limitations and restrictions ofthe respective funds: . , ~ ~ .. NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Equity 1. Investment in General Fixed Assets ~ .. Represents the City's equity in general fixed assets. ~ 2. Contributed Capital Contributed capital in the enterprise funds represents fixed assets which were purchased by other funds and transferred to the enterprise funds. Change in contributed capital for the year ended December 31, 2000 is as follows: lII\ I.l Enterprise Funds Water Sewer Fund Fund Total Contributed Capital - January 1,2000 $ 11,814,780 $ 14,344,608 $ 26,159,388 Add: 2000 Contributions 353,614 365,553 719,167 Less: Depreciation on Contributed Assets (249,939) (343,113) (593,052) Contributed Capital - December 31, 2000 $ 11,918,455 $ 14,367,048 $ 26,285,503 . ~ ~ , .. . i ' t.j ~ I ! .. ~ i ' .. ~ ~ . I.l ~ .. ~ .. r-I .. 33 c c c ~ a c I I B I a I a a a a ; ~ a I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Equity (Continued) 3. Fund Balance Fund balances are classified as follows to reflect limitations and restrictions ofthe respective funds. Special Debt Capital General Revenue Service Projects Total Reserved for: Inventory $ 62,642 $ 0 $ 0 $ 0 $ 62,642 Prepaid Items 3,267 0 0 0 3,267 Debt Service 0 0 7,453,536 0 7,453,536 Total Reserved Fund Balance 65,909 0 7,453,536 0 7,519,445 Umeserved: Designated for Working Capital 2,583,650 0 0 0 2,583,650 Designated for Projects 0 0 0 4,057,295 4,057,295 Designated for Equipment 0 0 0 428,962 428,962 Total Umeserved- Designated Fund Balance 2,583,650 0 0 4,486,257 7,069,907 Undesignated 33,227 1,391,868 (46,894) (1,535,552) (157,351 ) Total Fund Balance $ 2,682,786 $ 1,391,868 $ 7,406,642 $ 2,950,705 $ 14,432,001 4. Retained Earnings Retained earnings balances are unreserved at December 31, 2000. 34 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 4 - SEGMENT INFORMATION ~ ~ ~ ~ ~ .. ~ , , ! ' - The City maintains Water and Sewer Enterprise Funds. Segment information for the year ended December 31, 2000 is as follows: Water Operating Revenues Operating Expenses Depreciation Expense Operating Income Operating Transfers, Net Net Income Contributed Capital Net Working Capital Fixed Asset Purchases Total Assets Total Equity $ 1,119,324 882,898 338,769 236,426 (78,961) 239,334 11,918,455 1,971,473 74,542 13,968,576 13,909,176 NOTE 5 - TAX INCREMENT DISTRICTS Sewer $ 1,099,293 1,057,634 376,529 41,659 (17,000) 86,361 14,367,048 1,631,448 11,663 16,197,106 16,150,673 ~ .. Total ~ I.j $ 2,218,617 1,940,532 715,298 278,085 (95,961) 325,695 26,285,503 3,602,921 86,205 30,165,682 30,059,849 ~ ~ ~ ~ ~ ~ ~ - 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 $ 28,122 Current Net Tax Capacity 286,710 Captured Net Tax Capacity - Retained by City $ 258,588 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 640,268 Captured Net Tax Capacity - Retained by City $ 576,915 .. ~ .. ~ ! .. ~ ~ . I iii ~ ~ .. I .. ~ .. ~, : i . ~ I - 35 r-' . I I I I I I I I I I I I I I a ; a a I CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 NOTE 5 - TAX INCREMENT DISTRICTS (Continued) Total District 1 Bonds Issued $ 13,460,000 Amounts Redeemed 1,945,000 Bonds Outstanding at December 31,2000 $ 11,515,000 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 $ 13,533 Current Net Tax Capacity 158,283 Captured Net Tax Capacity - Retained by City $ 144,750 NOTE 6 - RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMC Trust), a public entity risk pool for its general property and casualty, workers' compensation, and other miscellaneous insurance coverages. The LMC Trust operates as a common risk management and insurance program for approximately 780 cities. The City pays an annual premium to the LMC Trust for insurance coverage. The LMC Trust agreement provides that the Trust will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits. The major reinsurance points are generally $ 200,000 per occurrence for property loss or damage and $ 450,000 per occurrence for workers' compensation. The City also carries commercial insurance for certain other risks of loss, including employee health insurance. Settled claims resulting from these risk have not exceeded commercial insurance coverage in any ofthe past fiscal years. 36 CITY OF ANDOVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 7 - COMMITMENTS The City has several commitments outstanding at year end for various construction projects. They are summarized on the next page: Project Expended Project through Remaining Authorization 12-31-00 Cormnitment $ 303,465 $ 269,666 $ 33,799 1,151,712 1,062,485 89,227 362,556 341,293 21,263 360,723 347,768 12,955 390,476 313,503 76,973 183,929 144,414 39,515 35,845 30,268 5,577 #98-11A Jay St. Irrig. & Landscape #99-17 Martin Street and #98-11B Jay Street Lighting #98-28 Shadowbrook 5th Addn. #98-29 Grey Oaks #00-16 Grey Oaks (Phase II) #00-27 2000 Overlay #00-28 Misc. Park Hand. Improvements NOTE 8 - CONTINGENT LIABILITIES The City of Andover, in connection with the normal conduct ofits affairs, is involved in various claims, judgements, and litigation. The potential claims against the City resulting from such litigation would not materially effect the financial condition ofthe City. 37 ~ .. o . ~ c ~ .. o o u ~ ~ ~ .. .~ ~ ~ .. ~ I I .. ~ l. ~ i , I.j ~ . , I.j ~ ~ o ~ ~ 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 o CITY OF ANDOVER, MINNESOTA GENERAL FUND o ~ ~ The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general govermnent, 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. o ~ I -- ~ ill c c 11III ~ c c c ~ I -- c c o c c c 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 SHEET ASSETS Cash and Investments Taxes Receivable - Delinquent Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due From Other Govermnental Units Due From Other Funds Inventory Prepaid Items TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Accrued Items Due to Other Govermnental 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 2000 1999 $ 2,148,692 53,544 46 257 51,364 9,497 111,060 613,702 62,642 3,267 $ 3,054,071 $ 1,307,493 169,150 46 257 44,825 11,624 89,715 1,578,600 47,198 2,916 $ 3,251,824 $ 168,046 136,438 12,954 53,847 371,285 $ 162,215 119,589 22,188 169,453 473,445 62,642 47,198 3,267 2,916 2,583,650 2,304,648 33,227 423,617 2,682,786 2,778,379 $ 3,054,071 $ 3,251,824 38 C CITY OF ANDOVER, MINNESOTA GENERALFUND C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL n Year Ended December 31, 2000 u With Comparative Actual Amounts for the Year Ended December 31, 1999 �I 2000 1999 �I Over (Under) Budget Actual Budget Actual V REVENUES: General Property Taxes $ 3,478,505 $ 3,571,186 $ 92,681 $ 3,125,776 Licenses and Permits 579,134 623,662 44,528 609,344 �0 Intergovernmental 941,975 969,317 27,342 864,985 Charges for Services 780,693 900,235 119,542 754,629 Fines 52,000 82,443 30,443 78,396 Miscellaneous 286,390 309,237 22,847 267,965 n Total Revenues 6,118,697 6,456,080 337,383 5,701,095 f■I EXPENDITURES: a Current - General Government 1,924,982 1,840,644 (84,338) 1,700,086 Public Safety 2,016,781 1,968,765 (48,016) 1,820,436 Public Works 1,864,566 1,591,137 (273,429) 1,363,875 Sanitation 162,507 100,073 (62,434) 119,957 Parks and Recreation 550,869 538,523 (12,346) 579,916 Recycling 95,628 91,071 (4,557) 88,307 Miscellaneous 168,312 133,321 (34,991 97,032 Total Expenditures 6,783,645 6,263,534 (520,111 ) 5,769,609 y EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (664,948) 192,546 857,494 (68,514) OTHER FINANCING SOURCES (USES): Operating Transfers In 659,679 81,961 (577,718) 776,699 Operating Transfers Out (370,100) (370,100) 0 (378,229) Total Other Financing Sources (Uses) 289,579 (288,139) (577,718) 398,470 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ (375,369) (95,593) $ 279,776 329,956 FUND BALANCE - January 1 2,778,379 2,448,423 rr FUND BALANCE - December 31 $ 2,682,786 $ 2,778,379 E W a 39 r I I I ~ = I I I I I ; I I I a a I ; I CITY OF ANDOVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 (Continued) 2000 1999 Over (Under) Budget Actual Budget Actual REVENUES: General Property Taxes $ 3,478,505 $ 3,571,186 $ 92,681 $ 3,125,776 Licenses and Permits 579,134 623,662 44,528 609,344 Intergovernmental Revenue - CDBG Grants 40,000 21,058 (18,942) 15,556 Local Government Aid 119,752 119,752 0 111,145 HACA and Local Performance Aid 381,528 381,601 73 367,520 COPS Grant 50,000 93,750 43,750 36,250 Street Maintenance 140,000 140,000 0 140,000 Fire Department Aid 62,000 64,082 2,082 60,599 Other Grants 148,695 149,074 379 133,915 Total Intergovernmental Revenue 941,975 969,317 27,342 864,985 Charges for Services - General Government 777,193 895,785 118,592 749,289 Utility Funds 3,500 4,450 950 5,340 Total Charges for Services 780,693 900,235 119,542 754,629 Fines 52,000 82,443 30,443 78,396 Miscellaneous - Assessments 0 0 0 2,075 Investrnentlncome 80,000 104,657 24,657 62,041 Rent 33,000 32,672 (328) 31,407 Refunds and Reimbursements 16,000 16,367 367 34,603 Street Light Fees 144,090 139,608 (4,482) 128,978 Computer Services 12,000 12,000 0 7,870 Other 1,300 3,933 2,633 991 Total Miscellaneous 286,390 309,237 22,847 267,965 Total Revenues 6,118,697 6,456,080 337,383 5,701,095 40 ~ ~ CITY OF ANDOVER, MINNESOTA GENERAL FUND C STATEMENT OF REVENUES, EXPENDITURES AND C CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 (Continued) U 2000 1999 Over ~ (Under) ~ Budget Actual Budget Actual EXPENDITURES: General Government - C Mayor and City Council - Personal Services $ 37,781 $ 37,410 $ (371) $ 37,780 Materials and Supplies 400 246 (154) 67 ~ Purchased Services 16,294 15,738 (556) 16,719 Other Services and Charges 18,276 18,246 (30~ 22,267 Total Mayor and City Council 72,751 71,640 (1,111 76,833 Newsletter - ~ Purchased Services 21,000 18,723 (2,277) 16,941 .. City Clerk - ~ Personal Services 86,645 85,547 (1,098) 81,646 ~ Materials and Supplies 525 917 392 505 Purchased Services 17,093 14,784 (2,309) 16,544 ~ Other Services and Charges 1,436 1,160 (276) 1,699 Total City Clerk 105,699 102,408 (3,291) 100,394 .. Administration - ~ Personal Services 71,364 68,932 (2,432) 67,248 ~ Materials and Supplies 2,500 1,444 (1,056) 2,195 Purchased Services 13,895 11,487 (2,408) 13,828 Other Services and Charges 3,063 4,534 1,471 3,536 ~ Total Administration 90,822 86,397 (4,425) 86,807 ~ Financial Administration - m Personal Services 201,570 199,873 (1,697) 191,518 Materials and Supplies 4,150 2,759 (1,391) 3,938 . Purchased Services 5,527 6,961 1,434 6,100 Other Services and Charges 7,013 4,153 (2,860) 6,497 11II Capital Outlay 2,200 2,100 (100) 153 :.1 Total Financial Administration 220,460 215,846 (4,614) 208,206 IIiII Elections - ~ Personal Services 20,190 14,934 (5,256) 1,566 , , Materials and Supplies 250 369 119 0 III Purchased Services 1,280 504 (776) 0 Capital Outlay 10,000 10,000 0 0 ~ I Total Elections 31,720 25,807 (5,913) 1,566 IIiII Assessing - . Purchased Services 78,336 83,784 5,448 77,578 ~ Legal and Accounting - Purchased Services 117,620 126,466 8,846 126,340 ~ IIIj 41 m iiII ---,- CITY OF ANDOVER, MINNESOTA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 (Continued) 2000 1999 Over (Under) EXPENDITURES: (Continued) Budget Actual Budget Actual ' General Government - (Continued) Planning and Zoning - Personal Services $ 191,563 $ 196,362 $ 4,799 $ 179,815 ' Materials and Supplies 5,000 2,495 (2,505) 5,334 Purchased Services 10,604 11,595 991 9,899 Other Services and Charges 7,632 4,588 (3,044) 5,052 Capital Outlay 1,000 0 (1,000 0 Total Planning and Zoning 215,799 215,040 (759 ) 200,100 Data Processing - Personal Services 30,674 26,635 (4,039) 9,117 Materials and Supplies 79,575 53,885 (25,690) 39,640 Capital Outlay 19,500 17,586 1,914 2,517 Total Data Processing 129,749 98,106 31,643 51,274 City Hall Building - Materials and Supplies 7,000 5,500 (1,500) 5,446 Purchased Services 40,414 40,168 (246) 37,573 Other Services and Charges 23,125 16,735 (6,390) 16,022 Total City Hall Building 70,539 62,403 (8,136) 59,041 Fire Department Building - Materials and Supplies 5,700 1,297 (4,403) 3,194 Purchased Services 39,000 35,182 (3,818) 29,803 Other Services and Charges 9,500 10,205 705 6,082 Total Fire Department Building 54,200 46,684 (7,516) 39,079 Public Works Building - Materials and Supplies 18,603 9,529 (9,074) 7,747 ' Purchased Services 42,200 57,895 15,695 37,565 Other Services and Charges 20,500 17,220 (3,280) 184,479 Capital Outlay 188,515 185,069 (3,446) 0 Total Public Works Building 269,818 269,713 (105) 229,791 Senior Citizen Center - Materials and Supplies 800 915 115 50 Purchased Services 7,533 7,319 (214) 6,875 Other Services and Charges 4,100 3,588 (5 12) 4,636 Total Senior Citizen Center 12,433 11,822 (611) 11,561 ' Equipment Building - Materials and Supplies 1,000 0 (1,000) 0 Purchased Services 13,406 11,254 (2,152) 959 Other Services and Charges 1,400 0 (1,400) 0 Capital Outlay 5,000 0 (5,000) 0 Total Equipment Building 20,806 11,254 (9,552) 959 42 C CITY OF ANDOVER, MINNESOTA GENERAL FUND ~ l.j STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ~ Year Ended December 31, 2000 .. With Comparative Actual Amounts for the Year Ended December 31,1999 (Continued) C 2000 1999 Over ~ (Under) Budget Actual Budget Actual .. EXPENDITURES: (Continued) General Government - (Continued) C City Hall Garage - Materials and Supplies $ 350 $ 12 $ (338) $ 237 Purchased Services 2,242 528 (1,714) 703 Total City Hall Garage 2,592 540 (2,052) 940 C Field of Dreams Building - Materials and Supplies 4,020 7,308 3,288 2,604 C Purchased Services 17,197 17,027 (170) 15,880 Other Services and Charges 10,700 7,463 (3,237) 5,651 Total Field of Dreams Building 31,917 31,798 (119) 24,135 Engineering - C Personal Services 333,419 323,307 (10,112) 349,451 Materials and Supplies 13,700 8,696 (5,004) 9,842 ~ Purchased Services 7,816 7,580 (236) 9,268 Other Services and Charges 13,736 15,726 1,990 8,591 .. Capital Outlay 10,050 6,904 (3,146) 11,389 Total Engineering 378,721 362,213 (16,508) 388,541 .. Total General Government 1,924,982 1,840,644 (84,338) 1,700,086 ~ Public Safety - C Police - Purchased Services 1,062,430 1,062,430 0 927,868 Fire Protection - W Personal Services 424,461 394,610 (29,851) 367,309 Materials and Supplies 25,600 23,734 (1,866) 24,414 Purchased Services 19,307 16,094 (3,213) 18,046 ~ Other Services and Charges 127,377 113,852 (13,525) 135,831 Capital Outlay 2,400 2,396 (4) 22,183 ~ Total Fire Protection 599,145 550,686 (48,459) 567,783 Protective Inspection - C Personal Services 293,817 300,740 6,923 274,287 Materials and Supplies 12,600 4,692 (7,908) 11,315 Purchased Services 8,015 5,863 (2,152) 4,705 ~ Other Services and Charges 15,239 18,239 3,000 14,608 .. Capital Outlay 0 0 0 628 Total Protective Inspection 329,671 329,534 (137) 305,543 C C 43 C I CITY OF ANDOVER, MINNESOTA I GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 I (Continued) 2000 1999 I Over (Under) Budget Actual Budget Actual I EXPENDITURES: (Continued) Public Safety - (Continued) Civil Defense - Personal Services $ 3,305 $ 3,313 $ 8 $ 3,252 I Materials and Supplies 4,950 8,284 3,334 214 Purchased Services 1,525 1,204 (321) 1,267 Other Services and Charges 3,650 540 (3,110) 2,445 Total Civil Defense 13,430 13,341 (89) 7,178 I Animal Control - Materials and Supplies 30 68 38 119 Purchased Services 12,075 12,706 631 11,945 I Total Animal Control 12,105 12,774 669 12,064 Total Public Safety 2,016,78 I 1,968,765 (48,016) 1,820,436 I Public Works - Streets and Highways - Personal Services 138,133 230,133 92,000 195,495 I Materials and Supplies 28,700 26,579 (2,121) 20,546 Purchased Services 16,060 16,772 712 17,170 Other Services and Charges 900,855 595,762 (305,093) 477,789 Capital Outlay 0 1,103 1,103 0 I Total Streets and Highways 1,083,748 870,349 (213,399) 711,000 Snow and Ice Removal - I Personal Services 241,866 200,509 (41,357) 170,292 Materials and Supplies 136,600 160,569 23,969 124,877 Purchased Services 3,296 2,262 (1,034) 2,520 Other Services and Charges 86,045 79,243 (6,802) 83,256 I Total Snow and Ice Removal 467,807 442,583 (25,224) 380,945 Street Lighting - Purchased Services 26,000 22,481 (3,519) 21,776 I Other Services and Charges 400 0 (400) 150 Capital Outlay 10,000 1,480 (8,520) 7,050 Billed Services 134,700 129,041 (5,659) 113,244 I Total Street Lighting 171,100 153,002 (18,098) 142,220 Street Signs - Personal Services 58,044 65,006 6,962 71,922 I Materials and Supplies 29,200 34,247 5,047 34,486 Purchased Services 419 141 (278) 628 Other Services and Charges 24,248 7,123 (17,125) 8,420 Capital Outlay 0 5,320 5,320 0 I Total Street Signs 111,911 111,837 (74) 115,456 44 I ~ CITY OF ANDOVER, MINNESOTA GENERAL FUND C STATEMENT OF REVENUES, EXPENDITURES AND C CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 (Continued) C 2000 1999 Over C (Under) Budget Actual Budget Actual EXPENDITURES: (Continued) C Public Works - (Continued) Traffic Signals - Purchased Services $ 30,000 $ 13,366 $ (16,634) $ 14,254 Total Public Works 1,864,566 1,591,137 (273,429) 1,363,875 C Sanitation - Storm Sewers - C Personal Services 51,037 43,018 (8,019) 54,865 Materials and Supplies 4,500 8,344 3,844 4,128 Purchased Services 835 203 (632) 231 Other Services and Charges 67,858 12,838 (55,020) 14,887 ~ Capital Outlay 0 0 0 20,000 .. Total Storm Sewers 124,230 64,403 (59,827) 94,111 Tree Preservation and Weed Control- C Personal Services 12,697 12,389 (308) 11,881 Materials and Supplies 2,525 700 (1,825) 1,776 Purchased Services 12,459 13,788 1,329 758 r'I Other Services and Charges 10,596 8,793 (1,803) 11,431 .. Total Tree Preservation and Weed Control 38,277 35,670 (2,607) 25,846 Total Sanitation 162,507 100,073 (62,434) 119,957 C Parks and Recreation - m Personal Services 333,387 313,742 (19,645) 263,924 Materials and Supplies 43,700 51,136 7,436 53,958 III Purchased Services 27,502 23,296 (4,206) 28,097 Other Services and Charges 95,401 98,367 2,966 83,017 C Capital Outlay 30,000 31,103 1,103 64,100 Miscellaneous 20,879 20,879 0 86,820 Total Parks and Recreation 550,869 538,523 (12,346) 579,916 Recycling - ~ ~ Personal Services 52,577 50,177 (2,400) 50,229 Materials and Supplies 10,050 5,122 (4,928) 1,062 W Purchased Services 7,200 2,678 (4,522) 2,169 Other Services and Charges 25,801 33,094 7,293 30,222 Capital Outlay 0 0 0 4,625 Total Recycling 95,628 91,071 (4,557) 88,307 W W 45 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, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 (Continued) 2000 1999 Over (Under) Budget Actual Budget Actual $ 40,000 $ 21,189 $ (18,811) $ 17,884 31,000 21,000 (10,000) 24,590 97,312 91,132 (6,180) 54,558 168,312 133,321 (34,991 ) 97,032 6,783,645 6,263,534 (520,111) 5,769,609 (664,948) 192,546 857,494 (68,514) 659,679 81,961 (577,718) 776,699 (370,100) (370,100) 0 (378,229) 289,579 (288,139) (577,718) 398,470 EXPENDITURES: (Continued) Unallocated - CDBG Insurance Miscellaneous Total Unallocated Total Expenditures EXCESS OF REVENuES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (375.369) (95,593) 2,778,379 $ 2.682.786 $ 279.776 329,956 2,448,423 $ 2.778.379 FUND BALANCE - January 1 FUND BALANCE - December 31 46 c c c c c c c c c c ~ lij ~ c c w W ~.I ~ C W 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 govermnent. CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 Drainage and EDA Trail and Forestry LRRWMO Mapping General Transportation ASSETS Cash and Investments $ 29,050 $ 14,520 $ 1,269 $ 70,229 $ 93,572 Taxes Receivable - Delinquent 0 432 0 0 0 Accounts Receivable 2,610 0 0 345 0 Interest Receivable 152 47 18 526 952 Due from Other Governmental Units 0 207 0 0 0 Due from Other Funds 0 0 10,817 0 0 TOTAL ASSETS $ 31,812 $ 15.206 $ 12,104 $ 71,100 $ 94,524 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 0 $ 0 $ 6,167 $ 1,094 $ 0 Accrued Items 151 603 0 2,379 0 Deferred Revenue 0 432 0 0 146,850 Due to Other Funds 0 0 0 0 37,277 Total Liabilities 151 1,035 6,167 3,473 184,127 Fund Balance (Deficit): Unreserved - Undesignated 31,661 14,171 5,937 67,627 (89,603) TOTAL LIABILITIES AND FUND BALANCE $ 31.812 $ 15,206 $ 12,104 $ 71,1 00 $ 94,524 c c c c c c c ~ c ~ I ... ~ C ~ c c c ~ ~ w ~ I I I I Right-of-Way Capital Oak Wilt Septic Management! Equipment Deve]oper Suppression Totals Disposa] Utility Reserve Sealcoating Program 2000 1999 I $ 7,997 $ 14,198 $ ],261,409 $ 346,675 $ 115 $ 1,839,034 $ 1,566,336 0 0 0 0 0 432 1,032 0 1,852 0 0 0 4,807 2,955 I 42 36 7,210 1,825 0 10,808 8,830 0 0 0 0 2,995 3,202 2,672 0 0 17,000 61,778 0 89,595 0 I $ 8,039 $ 16,086 $ 1,285.619 $ 410,278 $ 3,110 $ 1,947.878 $ 1.581,825 I $ 0 $ 0 $ 10,867 $ 0 $ 0 $ 18,128 $ 8,350 0 0 1,722 0 0 4,855 6,486 0 0 0 345,768 0 493,050 429,821 I 0 0 0 0 2,700 39,977 13,000 0 0 12,589 345,768 2,700 556,010 457,657 I 8,039 16,086 1,273,030 64,510 410 1,391,868 1,124,168 I $ 8,039 $ 16,086 $ ],285,6]9 $ 410.278 $ 3.110 $ 1.947.878 $ 1,581,825 I I I I I I I 47 I C CITY OF ANDOVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 Drainage and EDA Trail and Forestry LRRWMO Mapping General Transportation REVENUES: General Property Taxes $ 0 $ 19,454 $ 0 $ 0 $ 0 Intergovernmental - State 0 2,500 0 0 0 Other Grants 0 0 0 0 0 Charges for Services 8,952 0 10,817 0 49,050 Miscellaneous - Investment Income 1,945 583 (6) 13,211 13,460 Refunds and Reimbursements 0 0 0 0 0 Other 0 0 1,079 85,000 0 Total Revenues 10,897 22,537 11,890 98,211 62,510 EXPENDITURES: Q Current - Public Works 5,348 17,659 29,741 0 0 Economic Development 0 0 0 137,105 0 Capital Outlay 0 0 0 0 92,797 Total Expenditures 5,348 17,659 29,741 137,105 92,797 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,549 4,878 (17,851) (38,894) (30,287) OTHER FINANCING SOURCES (USES): Operating Transfers In 0 0 0 0 0 Operating Transfers Out 0 0 0 0 (91,211) Proceeds from Sale of Property 0 0 0 103,456 0 Total Other Financing Sources (Uses) 0 0 0 103,456 (91,211) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 5,549 4,878 (17,851) 64,562 (121,498) FUND BALANCE - January 1 26,112 9,293 23,788 3,065 31,895 FUND BALANCE (DEFICIT) - December 31 $ 31,661 $ 14,171 $ 5,937 $ 67,627 _L__(89,603) a Right -of -Way Capital Septic Management/ Equipment Developer Oak Wilt Totals Disposal Utility Fund Reserve Sealcoating Suppression 2000 1999 $ 0 $ 0 $ 0 $ 0 $ 0 $ 19,454 $ 13,657 0 0 0 0 0 2,500 2,545 0 0 10,000 0 13,245 23,245 10,000 0 29,134 0 0 0 97,953 17,018 537 388 90,364 23,306 0 143,787 69,684 v 0 0 0 0 0 0 3,735 0 0 0 0 0 86,079 83,244 537 29,522 100,364 23,306 13,245 373,019 199,883 9 0 13,436 0 0 0 66,184 85,254 0 0 0 0 0 137,105 112,480 0 0 109,578 0 0 202,375 259,929 0 13,436 109,578 0 0 405,664 457,663 a 537 16,086 (9,214) 23,306 13,245 (32,645) (257,780) 0 0 370,100 0 0 370,100 418,007 0 0 (82,000) 0 0 (173,211) (697,492) 0 0 0 0 0 103,456 0 0 0 288,100 0 0 300,345 (279,485) 537 16,086 278,886 23,306 13,245 267,700 (537,265) 7,502 0 994,144 41,204 (12,835) 1,124,168 1,661,433 $ 8,039 $ .16 086 $ 1,273,030 $ 64,510 $ 410 $ 1,391,868 $ 1,124,168 48 C CITY OF ANDOVER, MINNESOTA C FORESTRY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES C IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 C 2000 1999 ~ Over (Under) . Budget Actual Budget Actual C REVENUES: Intergovermnental - Other Grants $ 0 $ 0 $ 0 $ 10,000 C Charges for Services 16,000 8,952 (7,048) 15,518 Miscellaneous - Investment Income 1,300 1,945 645 658 Refunds and Reimbursements 256 0 (256) 0 C Total Revenues 17,556 10,897 (6,659) 26,176 EXPENDITURES: C Public Works- Personal Services 10,355 5,105 (5,250) 11,423 Materials and Supplies 1,200 0 (1,200) 650 C Purchased Services 500 183 (317) 10,909 Other Services and Charges 5,500 60 (5,440) 224 Total Expenditures 17,555 5,348 (12,207) 23,206 ~ EXCESS OF REVENUES OVER ~ (UNDER) EXPENDITURES I 5,549 5,548 2,970 W OTHER FINANCING USES: Operating Transfers Out 0 0 0 (82) EXCESS OF REVENUES OVER W (UNDER) EXPENDITURES AND OTHER USES $ 1 5,549 $ 5,548 2,888 W FUND BALANCE - January 1 26,112 23,224 FUND BALANCE - December 31 $ 31,661 $ 26,112 C C W W 49 C - -- ---- CITY OF ANDOVER, MINNESOTA LRRWMO FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 2000 1999 Over (Under) REVENUES: Budget Actual Budget Actual General Property Taxes $ 21,430 $ 19,454 $ (1,976) $ 13,657 Intergovernmental - State Aids 0 2,500 2,500 2,545 Miscellaneous - Investment Income 200 583 383 146 Total Revenues 21,630 22,537 907 16,348 EXPENDITURES: Public Works - Personal Services 16,483 16,218 (265) 13,440 Materials and Supplies 519 0 (519) 0 Purchased Services 460 0 (460) 165 Other Services and Charges 4,205 1,441 (2,764) 2,888 Total Expenditures 21,667 17,659 (4,008) 16,493 0 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (37) 4,878 4,915 (145) OTHER FINANCING USES: Operating Transfers Out 0 0 0 (17) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ (37) 4,878 $ 4,915 (162) FUND BALANCE - January 1 9,293 9,455 FUND BALANCE - December 31 $ 14,171 $ 9,293 50 C CITY OF ANDOVER, MINNESOTA C DRAINAGE AND MAPPING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES C IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 C 2000 1999 C Over (Under) Budget Actual Budget Actual C REVENUES: Charges for Services - Drainage and Mapping $ 43,850 $ 10,817 $ (33,033) $ 0 C Miscellaneous - Investment Income 700 (6) (706) 1,151 Other 0 1,079 1,079 1,074 Total Revenues 44,550 11,890 (32,660) 2,225 C EXPENDITURES: Public Works- C Materials and Supplies 6,500 3,529 (2,971) 2,996 Purchased Services 37,500 25,955 (11,545) 23,286 Other Services and Charges 50 257 207 0 ~ Capital Outlay 500 0 (500) 3,848 .. Total Expenditures 44,550 29,741 (14,809) 30,130 ~ EXCESS OF REVENUES ~ (UNDER) EXPENDITURES 0 (17,851) (17,851) (27,905) OTHER FINANCING USES: C Operating Transfers Out 0 0 0 (143) EXCESS OF REVENUES OVER C (UNDER) EXPENDITURES AND OTHER USES $ 0 (17,851) $ (17,851) (28,048) . FUND BALANCE - January 1 23,788 51,836 C FUND BALANCE - December 31 $ 5,937 $ 23,788 C C C C ' . 51 C I CITY OF ANDOVER, MINNESOTA I EDA GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 I With Comparative Actual Amounts for the Year Ended December 31, 1999 2000 1999 I Over (Under) Budget Actual Budget Actual I REVENUES: Miscellaneous - Investment Income $ 2,000 $ 13 ,211 $ 11 ,211 $ 0 Other 85,000 85,000 0 82,170 I Total Revenues 87,000 98,211 11,211 82,170 EXPENDITURES: I Economic Development - Personal Services 104,793 102,792 (2,001) 107,251 Materials and Supplies 2,000 12 (1,988) 22 I Purchased Services 10,500 33,890 23,390 2,871 Other Services and Charges 2,680 411 (2,269) 2,336 Total Expenditures 119,973 137,105 17,132 112,480 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (32,973) (38,894) (5,921) (30,310) I OTHER FINANCING SOURCES (USES): Operating Transfers In 0 0 0 7 Operating Transfers Out 0 0 0 (86) Proceeds from Sale of Property 32,818 103,456 70,638 0 I Total Other Financing Sources (Uses) 32,818 103,456 70,638 (79) EXCESS OF REVENUES AND OTHER I SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (155) 64,562 $ 64,717 (30,389) I FUND BALANCE - January 1 3,065 33,454 FUND BALANCE - December 31 $ 67,627 $ 3,065 I I I I 52 I CITY OF ANDOVER, MINNESOTA TRAIL AND TRANSPORTATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 REVENUES: Charges for Services Miscellaneous - Investment Income Total Revenues 2000 1999 Over (Under) Budget Actual Budget Actual $ 0 $ 49,050 $ 49,050 $ 1,500 0 13,460 13,460 5,025 0 62,510 62,510 6,525 0 92,797 92,797 0 0 (30,287) (30,287) 6,525 0 (91,211) (91,211) (593) EXPENDITURES: Capital Outlay EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING USES: Operating Transfers Out EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ (121,498) 5,932 25,963 $ 31,895 $ o (121,498) 31,895 $ (89,603) FUND BALANCE - January 1 FUND BALANCE - December 31 c ~ iJ /1\ ~ ~ ~ o c c ~ I I .. c ~ . ~ ~ ~ ill w w o o ~ ~ 53 o 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, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 2000 Actual Over (Under) Budget Budget REVENUES: Miscellaneous - Investll1entIncoll1e $ 100 $ $ 537 437 EXPENDITURES: Public Works- Other Services and Charges 100 o (100) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING USES: Operating Transfers Out o 537 537 o o EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ o $ 537 537 FUND BALANCE - January 1 7,502 8,039 FUND BALANCE - December 31 $ 1999 Actual $ 231 o 231 o (27) 204 7,298 $ 7,502 54 CITY OF ANDOVER, MINNESOTA RIGHT-OF-WAY MANAGEMENT/UTILITY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 c c ~ .. c c c c c c 2000 1999 Over (Under) Budget Actual Budget Actual $ 0 $ 29,134 $ 29,134 $ 0 0 388 388 0 0 29,522 29,522 0 : REVENUES: Charges for Services Miscellaneous - Investment Income Total Revenues EXPENDITURES Public Works:. Purchased Services Other Services and Charges Total Expenditures EXCESS OF REVENUES OVER EXPENDITURES 0 23 23 0 13,413 13,413 0 13,436 13,436 $ 0 16,086 $ 16,086 0 $ 16,086 $ o o o ~ .. FUND BALANCE - January 1 o FUND BALANCE - December 31 o c c c c c 55 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 CAPITAL EQUIPMENT RESERVE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 2000 1999 Over (Under) Budget Actual Budget Actual REVENUES: Intergovermnental Revenue - Other Grants $ 0 $ 10,000 $ 10,000 $ 0 Miscellaneous - Investment Income 58,000 90,364 32,364 45,850 Total Revenues 58,000 100,364 42,364 45,850 EXPENDITURES: Capital Outlay 0 109,578 109,578 256,081 EXCESS OF REVENUES (UNDER) EXPENDITURES 58,000 (9,214) (67,214) (210,231 ) OTHER FINANCING SOURCES (USES): Operating Transfers In 158,998 370,100 211,102 418,000 Operating Transfers Out (575,633) (82,000) 493,633 (695,936) Total Other Financing Sources (Uses) (416,635) 288,100 704,735 (277,936) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (358,635) 278,886 $ 637,521 (488,167) FUND BALANCE - January I 994,144 1,482,311 FUND BALANCE - December 31 $ 1,273,030 $ 994,144 56 CITY OF ANDOVER, MINNESOTA DEVELOPER SEALCOATING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for the Year Ended December 31, 1999 2000 Budget Actual Over (Under) Budget REVENUES: Miscellaneous - Investment Incorne $ $ 23,306 $ 23,306 o 'EXPENDITURES: Public Works- Other Services and Charges o o EXCESS OF REVENUES OVER . EXPENDITURES OTHER FINANCING USES: Operating Transfers Out 23,306 23,306 o o o iEXCESS OF REVENUES OVER ! (UNDER) EXPENDITURES . AND OTHER USES $ o 23,306 41,204 $ 64,510 $ 23,306 FUND BALANCE - January 1 'FUND BALANCE - December 31 ~ L . ~ I.i 1999 c c c Actual ~ ~ $ 16,623 c c c o o 16,623 o (597) ~ ~ 16,026 25,178 $ 41,204 c c ~ c ~ IIj III! I . III ~ III C 57 C I CITY OF ANDOVER, MINNESOTA I OAK WILT SUPPRESSION FUND I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2000 I With Comparative Actual Amounts for the Year Ended December 31, 1999 2000 1999 I Over (Under) Budget Actual Budget Actual I REVENUES: Intergovernmental - Other Grants $ 5,000 $ 13,245 $ 8,245 $ 0 I Miscellaneous - Investment Income 200 0 (200) 0 Refunds and Reimbursements 5,000 0 (5,000) 3,735 Total Revenues 10,200 13,245 3,045 3,735 I EXPENDITURES: Public Works- I Materials and Supplies 100 0 (100) 0 Purchased Services 0 0 0 19,231 Other SerVices and Charges 10,100 0 (10,100) 42 I Total Expenditures 10,200 0 (10,200) 19,273 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 0 13,245 13,245 (15,538) I OTHER FINANCING USES: Operating Transfers Out 0 0 0 (11) I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES $ 0 13,245 $ 13,245 (15,549) I FUND BALANCE - January 1 (12,835) 2,714 FUND BALANCE (DEFICIT) - December 31 $ 410 $ (12,835) I I I I I 58 I c c c c c ~ iIIj c u c c c c c c c c ~ ~ ~ ~ c I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS Debt Servic~ 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 govermnental enterprise. CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 3 I, 2000 With Comparative Totals for the Year Ended December 3 I, 1999 ASSETS TIF TIF Certificates TIF Bonds Bonds of Commercial ofI993B of I 994B Indebtedness Revitalization Project I - I Project 1-2 $ 30,702 $ 625,037 $ 39,027 $ 147,944 2,907 21,490 0 0 0 484,642 0 0 0 4,885 0 0 360 1,851 735 0 2,613 4,128 0 336 14,000 0 0 0 $ 50,582 $ I.I 42.033 $ 39,762 $ 148,280 ,Cash and Investments :Taxes Receivable - Delinquent ,Special Assessments Receivable- Deferred Delinquent ilnterest Receivable iDue from Other Governmental Units iDue from Other Funds TOTAL ASSETS i LIABILITIES AND FUND BALANCE iLiabiIities: Accounts Payable Developer Advances Deferred Revenue Due to Other Funds Total Liabilities $ 0 $ 0 $ 0 $ 0 0 0 0 0 2,907 5II,017 0 0 0 0 0 0 2,907 511,017 0 0 47,675 631,016 39,762 148,280 0 0 0 0 47,675 631,016 39,762 148,280 $ 50,582 $ I,I42.033 $ 39,762 $ 148,280 ,Fund Balance (Deficit): , Reserved For Debt Service Unreserved - Un designated Total Fund Balance (Deficit) TOTAL LIABILITIES AND FUND BALANCE c ~ 1 I ... u c c u c c c ~ ~ ~ C II!I\ I . c c o c c c I I I I 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 I of 1977A of1985B of 1986C/1997C of 1989/1996 of 1993A of 1994C of1995A $ 519,030 $ 594 $ 729,348 $ 669 $ 1,683 $ 85,868 $ 344,999 I 0 0 0 0 0 0 0 82,851 0 89,283 50,830 195,628 345,974 39,744 681 0 2,595 1,235 9 1,018 0 I 3,087 0 3,668 0 0 352 1,781 109 0 2,720 384 71 877 0 0 113,406 0 569,875 822,831 21,560 13,601 I $ 605,758 $ 114.000 $ 827,614 $ 622.993 $ 1.020.222 $ 455,649 $ 400,125 I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 I 83,532 0 91,878 52,065 195,637 346,992 39,744 0 114,000 703,845 307,000 575,000 0 0 83,532 114,000 795,723 359,065 770,637 346,992 39,744 I 522,226 0 31,891 263,928 249,585 108,657 360,381 0 0 0 0 0 0 0 I 522,226 0 31,891 263,928 249,585 108,657 360,381 $ 605,758 $ 114,000 $ 827,614 $ 622,993 $ 1,020,222 $ 455,649 $ 400,125 I I I I I I 59 I CITY OF ANDOVER, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 (Continued) ASSETS Cash and Investments Taxes Receivable - Delinquent Special Assessments Receivable - Deferred Delinquent Interest Receivable Due from Other Governmental Units Due from Other Funds TOTAL ASSETS LIABILITIES AND FUND BALANCE (DEFICIT) Liabilities: Accounts Payable Developer Advances Deferred Revenue Due to Other Funds Total Liabilities Fund Balance (Deficit): Reserved For Debt Service Unreserved - Un designated Total Fund Balance (Deficit) TOTAL LIABILITIES AND FUND BALANCE $ 0 $ 0 $ 0 $ 0 0 0 0 0 179,267 0 268,840 1,234,867 420,000 0 0 0 599,267 0 268,840 1,234,867 533,505 17,193 778,468 2,515,116 0 0 0 0 533,505 17,193 778,468 2,515,116 $ 1,132.772 $ 17.193 $ 1,047,308 $ 3.749.983 G.O. Improvement Bonds of 1996C EDA Public Project Revenue Bonds of 1997 G.O. Improvement Bonds of 1 997A $ 948,076 o $ 17,193 $ 707,288 0 0 0 268,840 0 0 0 5,864 0 0 0 65,316 17,193 $ 1.047,308 178,176 1,091 4,881 548 o $ 1,132,772 $ c G.O. Improvement Bonds of 1997B c c c c c c $ 2,388,814 o 1,234,867 o 15,334 o 110,968 $ 3.749.983 c c c c c c c c ~ ~ c c c I I I I G.O. G.O. G.O. G.O. Refunding Equipment TIF Improvement TIF PIR Fund I Bonds Certificate Bonds Bonds Bonds Bonds Totals of 1998 of1999 of1999 of 1999C of2000A of2000B 2000 1999 $ 33,911 $ 106 $ 97,671 $ 1,082,725 $ 101,351 $ 14,024 $ 7,916,060 $ 9,018,267 I 4,842 0 0 0 0 0 29,239 192,061 0 0 0 490,073 0 0 3,460,908 3,275,318 I 0 0 0 0 0 0 11,514 10,162 120 0 586 10,079 355 66 49,119 47,348 2,986 0 149 0 672 0 15,593 15,792 0 0 0 575,000 0 0 2,306,557 0 I $ 41.859 $ 106 $ 98,406 $ 2.1 57,877 $ 102,378 $ 14,090 $ 13,788,990 $ 12,558,948 I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 553 0 0 0 713,842 0 0 713,842 294,869 I 4,842 0 0 490,073 0 0 3,501,661 3,477,541 0 47,000 0 0 0 0 2,166,845 174,000 4,842 47,000 0 1,203,915 0 0 6,382,348 3,946,963 I 37,017 0 98,406 953,962 102,378 14,090 7,453,536 8,785,678 0 (46,894) 0 0 0 0 (46,894) (173,693) I 37,017 (46,894) 98,406 953,962 102,378 14,090 7,406,642 8,611,985 $ 41.859 $ 106 $ 98,406 $ 2,157.877 $ 102.378 $ 14,090 $ 13,788,990 $ 12,558.948 I I I I I I 60 I CITY OF ANDOVER, MINNESOTA C DEBT SERVICE FUNDS U COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 3 I, 2000 C With Comparative Totals for the Year Ended December 3 I, 1999 TIF TIF 0 Certificates TIF Bonds Bonds of Commercial ofI993B of I 994B Indebtedness Revitalization Project 1- I Project 1-2 C REVENUES: Taxes $ 231,420 $ 0 $ 0 $ 0 Tax Increments 0 610,479 13,160 67,146 Special Assessments 0 80,362 0 0 C Intergovernmental - State Aids 45,445 0 0 0 Miscellaneous - Investment Income 3,076 21,608 10,822 0 C Other 0 0 0 0 Total Revenues 279,941 712,449 23,982 67,146 EXPENDITURES: C Debt Service - Principal Retirement 175,000 255,000 220,000 90,000 Interest and Fiscal Charges 6,125 377,847 13,549 30,238 Other 650 570 0 0 C Total Expenditures 181,775 633,417 233,549 120,238 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 98,166 79,032 (209,567) (53,092) ~ ~ OTHER FINANCING SOURCES (USES): ~ Operating Transfers In 14,000 0 0 0 Operating Transfers Out (170,000) 0 0 (175,000) Bond Proceeds 0 0 0 0 Total Other Financing ~ Sources (Uses) (156,000) 0 0 (175,000) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) m EXPENDITURES AND OTHER USES (57,834) 79,032 (209,567) (228,092) .. FUND BALANCE (DEFICIT) - January I 105,509 551,984 249,329 376,372 RESIDUAL EQUITY TRANSFERS IN (OUT) 0 0 0 0 W FUND BALANCE (DEFICIT) - December 31 $ 47,675 $ 631,016 $ 39,762 $ 148,280 ~ ~ ~ * W ~ ' I W I I I I 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 I ofl977A of 1985B 1 986C/1 997C of 1989/1996 of 1993A ofl994C ofl995A $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 I 18,534 0 76,384 12,195 16,819 48,837 16,432 0 0 0 0 0 0 0 I 37,268 (167) 48,189 116 (126) 1,382 14,752 0 0 0 0 0 0 0 55,802 (167) 124,573 12,311 16,693 50,219 31,184 I 65,000 120,000 210,000 300,000 365,000 115,000 240,000 I 20,250 8,763 9,598 33,626 84,762 41,144 93,586 0 1,465 0 0 1,330 0 53,072 85,250 130,228 219,598 333,626 451,092 156,144 386,658 I (29,448) (130,395) (95,025) (321,315) (434,399) (I 05,925) (355,474) I 0 0 0 569,875 822,831 21,560 13,601 0 0 (590,439) 0 0 0 0 0 0 0 0 0 0 0 I 0 0 (590,439) 569,875 822,831 21,560 13,601 I (29,448) (130,395) (685,464) 248,560 388,432 (84,365) (341,873 ) 551,674 16,989 830,761 15,368 (138,847) 193,022 702,254 I 0 113,406 (113,406) 0 0 0 0 $ 522.226 $ 0 $ 31.891 $ 263.928 $ 249,585 $ 108,657 $ 360,381 I I I I 61 I G.O. G.O. G.O. G.O. Refunding Equipment TIF Improvement TIF PIR Bonds Certificate Bonds Bonds Bonds Bonds Totals of1998 of1999 of1999 of1999C of2000A of2000B 2000 1999 $ 247,037 $ 0 $ 0 $ 0 $ 0 $ 0 $ 478,457 $ 405,573 0 0 17,562 0 79,027 0 787,374 783,000 0 0 0 1,316,636 0 0 2,434,898 3,237,488 60,691 0 0 0 0 0 106,136 119,818 4,561 (97) 7,665 146,609 4,297 734 614,819 412,644 0 0 0 0 0 0 0 170,025 312,289 (97) 25,227 1,463,245 83,324 734 4,421,684 5,128,548 265,000 0 0 705,000 0 0 4,580,000 3,775,000 14,143 49,637 66,975 170,257 83 83 1,335,228 1,365,639 0 0 0 0 0 0 57,087 11,570 279,143 49,637 66,975 875,257 83 83 5,972,315 5,152,209 A 33,146 (49,734) (41,748) 587,988 83,241 651 (1,550,631) (23,661) 0 0 175,000 0 0 0 1,793,151 766,583 (125,000) 0 0 0 0 0 (1,480,439) (14,438) 0 0 0 0 19,137 13,439 32,576 123,916 (125,000) 0 175,000 0 19,137 13,439 345,288 876,061 (91,854) (49,734) 133,252 587,988 102,378 14,090 (1,205,343) 852,400 128,871 2,840 (34,846) 365,974 0 0 8,611,985 7,759,585 0 0 0 0 0 0 0 0 $ 37,017 $ (46,894) $ 98,406 $ 953,962 $ 102,378 $ 14,090 $ 7,406,642 $ 8,611,985 62 c c ~ ~ C r-r .. ~ ~ ~ l.l c /11\ i./ c c JIll ~ c ~ I I .. ~ .. ~ 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 CAPITAL PROJECTS FUNDS Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a govermnental unit except those financed by enterprise funds. 0 CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS 0 COMBINING BALANCE SHEET C December 31, 2000 With Comparative Totals for December 31, 1999 C Water Storm Sewer C Trunk Sewer Trunk Unfinanced Project Project Project Projects C ASSETS Cash and Investments $ 1,594 $ 638 $ 707,817 $ 3,833 Special Assessments Receivable - Deferred 892,628 0 123,734 712,429 C Delinquent 456 0 21 60 Accounts/Loans Receivable 0 0 0 835 Interest Receivable 0 0 2,352 0 C Due from Other Govermnental Units 11,573 0 9 0 Due from Other Funds 514,025 0 129,185 0 TOTAL ASSETS $ 1,420,276 $ 638 $ 963,118 $ 717,157 ~ .. LIABILITIES AND FUND BALANCE ~ LIABILITIES: .- Accounts Payable $ 5,417 $ 0 $ 175 $ 61,432 Contracts Payable 0 0 0 0 C Developer Advances 0 0 0 0 Deferred Revenue 893,084 0 123,755 712,489 Due to Other Funds 646,668 105,000 499,134 1,106,641 ~ Total Liabilities 1,545,169 105,000 623,064 1,880,562 ~ FUND BALANCE (DEFICIT) C Unreserved - Designated for Projects 0 0 340,054 0 Designated for Equipment 0 0 0 0 Undesignated (124,893) (104,362) 0 (1,163,405) C Total Fund Balance (Deficit) (124,893) (104,362) 340,054 (1,163,405) TOTAL LIABILITIES C AND FUND BALANCE $ 1,420,276 $ 638 $ 963,118 $ 717,157 C C 1"1 ~ C I I I I I State Aid Tax Public Permanent Revolving State Aid Increment Park Works Improvement I Projects Projects Projects Dedication Project Revolving $ 320 $ 620,615 $ 418,526 $ 454,138 $ 33,907 $ 1,524,444 I 48,303 47,514 0 0 0 234,467 885 0 0 0 0 456 750 0 79,123 0 6,805 0 I 0 1,828 8,504 2,496 0 16,217 54,077 0 33,602 0 0 5,043 0 328,109 1,190,000 0 0 680,000 I $ 104,335 $ 998,066 $ 1,729,755 $ 456,634 $ 40,712 $ 2,460,627 I I $ 0 $ 1,703 $ 68,662 $ 7,636 $ 8,805 $ 0 0 0 0 0 0 0 0 0 0 0 0 512,107 49,188 47,514 79,123 0 0 234,923 I 172,000 0 1,191,775 20,036 0 8,694 221,188 49,217 1,339,560 27,672 8,805 755,724 I 0 948,849 390,195 0 31,907 1,704,903 I 0 0 0 428,962 0 0 (116,853) 0 0 0 0 0 (116,853) 948,849 390,195 428,962 31,907 1,704,903 I $ 104,335 $ 998,066 $ 1,729,755 $ 456,634 $ 40,712 $ 2,460,627 I I I I 63 0 CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS U COMBINING BALANCE SHEET ~ December 31, 2000 .. With Comparative Totals for December 31,1999 (Continued) ~ ~ Old City Kelsey Round 1999 G.O. Improvement ~ Hall Lake Park Equipment Bonds of Remodel Project Certificate 1999C Project ASSETS C Cash and Investments $ 8,310 $ 23 $ 138 $ 289,131 Special Assessrnents Receivable - Deferred 0 0 0 0 ~ Delinquent 0 0 0 0 ~ Accounts/Loans Receivable 0 0 0 0 Interest Receivable 0 0 0 1,664 C Due from Other Govermnental Units 0 0 0 0 Due from Other Funds 0 0 0 56,450 TOTAL ASSETS $ 8,310 $ 23 $ 138 $ 347,245 C LIABILITIES AND FUND BALANCE C LIABILITIES: Accounts Payable $ 0 $ 0 $ 0 $ 7,763 Contracts Payable 0 0 0 0 m Developer Advances 0 0 0 0 .. Deferred Revenue 0 0 0 0 Due to Other Funds 0 9,200 17,000 187,007 C Total Liabilities 0 9,200 17,000 194,770 FUND BALANCE (DEFICIT) W Unreserved - Designated for Projects 8,310 0 0 152,475 Designated for Equipment 0 0 0 0 Undesignated 0 (9,177) (16,862) 0 ~ Total Fund Balance (Deficit) 8,310 (9,177) (16,862) 152,475 TOTAL LIABILITIES W AND FUND BALANCE $ 8,310 $ 23 $ 138 $ 347,245 PIll ~ ~, liIi 0 C I I I I I Ball Field Totals I Development 2000 1999 $ 480,269 $ 4,543,703 $ 3,711,731 I 0 2,059,075 1,811,454 0 1,878 58,627 0 87,513 111,175 I 333 33,394 19,331 0 104,304 365,661 0 2,897,769 283,200 I $ 480,602 $ 9,727,636 $ 6,361,179 I $ 0 $ 161,593 $ 152,227 I 0 0 110,321 0 512,107 642,240 0 2,140,076 1,968,160 I 0 3,963,155 2,143,411 0 6,776,931 5,016,359 I 480,602 4,057,295 2,998,212 I 0 428,962 920,707 0 (1,535,552) (2,574,099) 480,602 2,950,705 1,344,820 I $ 480,602 $ 9,727,636 $ 6,361,179 I I I I 64 CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 REVENUES: Taxes Tax Increments Special Assessments Intergovermnental - State Aids Other Grants Miscellaneous - Investment Income Park Dedication Fees Refunds and Reimbursements Other 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) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCE (DEFICIT) - January 1 FUND BALANCE (DEFICIT) - December 31 Water Trunk Project $ 0 o 151,076 o o 288 o o 726,163 877,527 628,459 5,763 634,222 243,305 o (314,668) o o (314,668) (71,363) (53,530) $ (124,893) Storm Sewer Project $ 0 o o (104,362) $ (104,362) Sewer Trunk Project o o $ 0 o 39,470 o o o o o o o 23,893 o o 340,253 403,616 o o o 376,014 o 376,014 o 27,602 o o o o o o (279,044) o o (279,044) o (251,442) 591,496 $ 340,054 ~ ~ ~ ~ C Unfinanced Projects c m $ 0 o 1,228,435 o o ~ .. o ~ * tD 64 o 650 o 1,229,149 1,048,466 34,624 1,083,090 m tD rM .. 146,059 870 o o o 870 ~ \j.j o ~ u. 146,929 (1,310,334) $ (1,163,405) ~ ~ ~ ~ C I a a I I State Aid Tax Public Permanent Revolving State Aid Increment Park Works Improvement Projects Projects Projects Dedication Project Revolving I $ 0 $ 0 $ 7,369 $ 0 $ 0 $ 0 0 0 403,277 0 0 0 1,981 0 0 0 0 67,740 I 939,006 153,485 0 0 0 0 0 0 0 0 0 0 I 0 113,528 87,926 32,592 0 185,297 0 0 0 170,447 0 0 0 0 8 0 0 3,891 I 0 0 18,956 13,465 0 0 940,987 267,013 517,536 216,504 0 256,928 I 16,441 122,364 3,619,561 182,748 125,375 1,926,658 I 0 0 0 0 0 36,761 16,441 122,364 3,619,561 182,748 125,375 1,963,419 I 924,546 144,649 (3,102,025) 33,756 (125,375) (1,706,491) I 0 37,170 0 0 0 0 (37,170) 0 0 0 0 (100,000) 0 0 2,425,863 0 0 3,336,561 I 0 0 345,271 0 3,638 0 (37,170) 37,170 2,771,134 0 3,638 3,236,561 I 887,376 181,819 (330,891) 33,756 (121,737) 1,530,070 I (1,004,229) 767,030 721,086 395,206 153,644 174,833 I $ (116,853) $ 948,849 $ 390,195 $ 428,962 $ 31 ,907 $ 1,704,903 I 65 I CITY OF ANDOVER, MINNESOTA CAPITAL PROJECTS FUNDS y COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 V With Comparative Totals for the Year Ended December 31, 1999 (Continued) i W Old City Kelsey Round 1999 G.O. Improvement Hall Lake Park Equipment Bonds of Remodel Project Certificate 1999C Project V REVENUES: Taxes $ 0 $ 0 $ 0 $ 0 M Tax Increments 0 0 0 0 Special Assessments 0 0 0 0 Intergovernmental - State Aids 0 0 0 0 V Other Grants 0 0 0 0 Miscellaneous - Investment Income 14,841 0 (10,169) 27,371 p Park Dedication Fees 0 0 0 0 Refunds and Reimbursements 0 0 0 0 Other 0 0 0 0 1" Total Revenues 14,841 0 (10,169) 27,371 y EXPENDITURES: Capital Projects - Capital Outlay 0 11 532,136 464,149 Interest 0 5,264 58 0 Total Expenditures 0 5,275 532,194 464,149 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 14,841 (5,275) (542,363) (436,778) W W OTHER FINANCING SOURCES (USES): Operating Transfers In 0 91,211 0 0 Operating Transfers Out 0 0 0 (870) Bond Proceeds 0 0 0 0 Proceeds from Sale of Property 0 0 0 0 Total Other Financing Sources (Uses) 0 91,211 0 (870) W EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER W FINANCING USES 14,841 85,936 (542,363) (437,648) FUND BALANCE (DEFICIT) - January 1 (6,531) (95,113) 525,501 590,123 W FUND BALANCE (DEFICIT) - December 31 $ 8,310 $ (9,177) $ (16,862) $ 152,475 W G I I I I I Ball Field Totals Development 2000 1999 I $ 0 $ 7,369 $ 0 0 403,277 0 0 1,488,702 953,671 I 0 1,092,491 65,623 0 0 50,000 I 3,602 479,233 258,286 0 170,447 399,028 0 4,549 65,140 I 0 1,098,837 10,995 3,602 4,744,905 1,802,743 I 0 9,042,382 8,409,139 0 82,470 148,403 I 0 9,124,852 8,557,542 I 3,602 (4,379,947) (6,754,799) I 477,000 606,251 14,493 0 (731,752) (719,278) 0 . 5,762,424 5,889,014 0 348,909 461,817 I 477,000 5,985,832 5,646,046 I 480,602 1,605,885 (1,108,753) I 0 1,344,820 2,453,573 $ 480,602 $ 2,950,705 $ 1,344,820 I I 66 I ~ \.j u ~ iIi c c c ~ ~ C ~ ~ ~ ~ ~ u.. m .. ~ ~ ~ ~ ~ .. ~ W I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS Enterprise Funds are established to account for the financing of self-supporting activities of governmental units which render services on a user charge basis to the general public. The reports of Enterprise Funds are similar to comparable private enterprise and are self- contained. Creditors, legislators or the general public can evaluate the performance ofthe municipal enterprise on the same basis as they can the performance of investor-owned enterprises. CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 ASSETS Water Sewer $ 1,610,721 $ 999,154 0 8,462 0 2,222 243,930 273,382 6,660 5,197 0 1,194 116,590 332,000 28,173 165 0 41,379 2,006,074 1,663,155 813,902 168,111 986,172 163,319 13,330,422 18,300,530 15,130,496 18,631,960 (3,167,994) (4,098,009) 11,962,502 14,533,951 $ 13,968,576 $ 16,197,106 CURRENT ASSETS: Cash and Cash Equivalents Special Assessments Receivable - Deferred Delinquent Accounts Receivable Interest Receivable Due from Other Govermnental Units Due from Other Funds Inventory Prepaid Items Total Current Assets PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment Machinery Collection and Distribution System Total Cost Less: Accumulated Depreciation Net Property, Plant and Equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable Accrued Items Due to Other Govermnental Units Deferred Revenue Due to Other Funds Total Current Liabilities $ 15,518 $ 3,296 12,083 2,821 0 0 0 8,775 7,000 16,815 34,601 31,707 24,799 14,726 59,400 46,433 11,918,455 14,367,048 1,990,721 1,783,625 13,909,176 16,150,673 $ 13,968,576 $ 16,197,106 COMPENSATED ABSENCES PAYABLE Total Liabilities FUND EQUITY: Contributed Capital Retained Earnings: Unreserved Total Fund Equity TOTAL LIABILITIES AND FUND EQUITY c c c ~ .. !III ~ c c w c ~ ~ ~ ~ c ~ I , .. c c c c ~ ~ .. Totals 2000 1999 ' $ 2,609,875 $ 1,681,103 ' 8,462 8,462 2,222 2,443 517,312 452,965 11,857 10,114 1,194 1,691 448,590 468,611 ' 28,338 17,583 41,379 39,960 3,669,229 2,682,932 982,013 919,132 1,149,491 1,151,536 31,630,952 30,911,785 33,762,456 32,982,453 (7,266,003) (6,576,074) 26,496,453 26,406,379 $ 30,165,682 $ 29,089,311 $ 18,814 $ 15,868 14,904 16,685 0 0 8,775 8,996 23,815 0 66,308 41,549 39,525 32,775 105,833 74,324 26,285,503 26,159,388 3,774,346 2,855,599 30,059,849 29,014,987 $ 30,165,682 $ 29,089,311 67 CITY OF ANDOVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 Water Sewer OPERATING REVENUES: User Charges $ 1,041,602 $ 1,081,682 Meters 45,581 0 Permit Fees 14,950 0 Penalties 16,749 17,611 Other 442 0 Total Operating Revenues 1,119,324 1,099,293 OPERATING EXPENSES: Personal Services 390,077 129,961 Supplies 65,811 10,510 Other Services and Charges 88,241 47,914 Disposal Charges 0 492,720 Depreciation 338,769 376,529 Total Operating Expenses 882,898 1,057,634 OPERATING INCOME 236,426 41,659 NON-OPERATING REVENUES: Investment Income 81,869 61,702 INCOME BEFORE OPERATING TRANSFERS 318,295 103,361 Operating Transfers Out (78,961) (17,000) NET INCOME (LOSS) 239,334 86,361 Add: Depreciation Charged Against Contributed Capital 249,939 343,113 RETAINED EARNINGS - January 1 1,501,448 1,354,151 RETAINED EARNINGS - December 31 $ 1,990,721 $ 1,783,625 c ~ .. c c c c c c c ~ l.I r-i MIl c c c c c c c c I I I I Totals I 2000 1999 $ 2,123,284 $ 1,720,957 I 45,581 54,950 14,950 18,600 34,360 25,460 442 1,959 I 2,218,617 1,821,926 I 520,038 487,143 76,321 65,455 136,155 101,863 I 492,720 456,029 715,298 674,609 1,940,532 1,785,099 I 278,085 36,827 I 143,571 62,115 421,656 98,942 I (95,961) (165,933) I 325,695 (66,991 ) 593,052 539,160 I 2,855,599 2,383,430 I $ 3,774,346 $ 2,855,599 I I I 68 I CITY OF ANDOVER, MINNESOTA C ENTERPRISE FUNDS C COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 C Totals Water Sewer 2000 1999 C CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income $ 236,426 $ 41,659 $ 278,085 $ 36,827 Adjustments to Reconcile Operating Income to M Net Cash Provided by Operating Activities: Depreciation 338,769 376,529 715,298 674,609 ~ Change in Assets and Liabilities: (Increase) Decrease in Special Assessments 0 221 221 (8,462) C Receivable (Increase) Decrease in Accounts Receivable (32,752) (31,595) (64,347) 9,751 Decrease in Due From Other Governmental Units 0 497 497 1,403 C (Increase) in Inventory (10,631) (124) (10,755) (3,418) (Increase) in Prepaid Items 0 (1,419) (1,419) (1,838) Increase (Decrease) in Accounts Payable 1,129 1,817 2,946 (3,140) Increase (Decrease) in Accrued Items 7,156 (2,187) 4,969 25,746 C (Decrease) in Due to Other Governmental Units 0 0 0 (484) Increase (Decrease) in Deferred Revenue 0 (221) (221) 8,462 C Total Adjustments 303,671 343,518 647,189 702,629 Net Cash Provided by Operating Activities 540,097 385,177 925,274 739,456 CASH FLOWS FROM NONCAPIT AL r-, FINANCING ACTIVITIES: l.I Advances from Other Funds 7,000 16,815 23,815 0 Advances to Other Funds 0 (98,389) (98,389) (468,611) ~ Payments of Advances to Other Funds 118,410 0 118,410 0 ~ Transfers from Other Funds 0 0 0 0 Transfers to Other Funds (78,961 ) (17,000) (95,961) (165,933) Net Cash Provided (Used) by Noncapital ~ Financing Activities 46,449 (98,574) (52,125) (634,544) ~ CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: C Acquisition of Fixed Assets (74,542) (11,663) (86,205) (249,322) CASH FLOWS FROM INVESTING ACTIVITIES: ~ Investment Income 80,989 60,839 141,828 133,758 .. NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 592,993 335,779 928,772 (10,652) C CASH AND CASH EQUIVALENTS, January 1 1,017,728 663,375 1,681,103 1,691,755 CASH AND CASH EQUIVALENTS, December 31 $ 1,610,721 $ 999,154 $ 2,609,875 $ 1,681,103 C [j C 69 C I I CITY OF ANDOVER, MINNESOTA WATER FUND I COMPARATIVE BALANCE SHEET I December 31 2000 1999 ASSETS I CURRENT ASSETS: Cash and Cash Equivalents $ 1,610,721 $ 1,017,728 Accounts Receivable 243,930 211,178 I Interest Receivable 6,660 5,780 Due From Other Funds 116,590 235,000 Inventory 28,173 17,542 Total Current Assets 2,006,074 1,487,228 I PROPERTY, PLANT AND EQUIPMENT: Furniture and Equipment 813,902 751,021 I Machinery 986,172 992,071 Distribution System 13,330,422 12,976,808 Total Cost 15,130,496 14,719,900 I Less: Accumulated Depreciation (3,167,994) (2,846,785) Net Property, Plant and Equipment 11,962,502 11,873,115 I TOTAL ASSETS $ 13,968,576 $ 13,360,343 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 15,518 $ 14,389 Accrued Items 12,083 11,027 I Due to Other Funds 7,000 0 Total Current Liabilities 34,601 25,416 I COMPENSATED ABSENCES PAYABLE 24,799 18,699 Total Liabilities 59,400 44,115 I FUND EQUITY: Contributed Capital 11,918,455 11,814,780 Retained Earnings: I Unreserved 1,990,721 1,501,448 Total Fund Equity 13,909,176 13,316,228 I TOTAL LIABILITIES AND FUND EQUITY $ 13,968,576 $ 13,360,343 I I 70 I CITY OF ANDOVER, MINNESOTA WATER FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 2000 and 1999 2000 1999 Amount Percent Amount Percent OPERATING REVENUES: User Charges $ 1,041,602 93.1 % $ 753,939 89.8 % Meters 45,581 4.1 54,950 6.5 Permit Fees 14,950 1.3 18,600 2.2 Penalties 16,749 1.5 11,380 1.4 Other 442 0.0 1,146 0.1 Total Operating Revenues 1,119,324 100.0 840,015 100.0 OPERATING EXPENSES: Personal Services 390,077 34.8 366,690 43.6 Supplies 65,811 5.9 57,089 6.8 Other Services and Charges 88,241 7.9 51,740 6.2 Depreciation 338,769 30.3 336,183 40.0 Total Operating Expenses 882,898 78.9 811,702 96.6 OPERATING INCOME 236,426 21.1 28,313 3.4 NON-OPERATING REVENUES: Investment Income 81,869 7.3 32,850 3.9 INCOME BEFORE OPERATING TRANSFERS 318,295 28.4 % 61,163 7.3 % Operating Transfers Out (78,961) (105,346) NET INCOME (LOSS) 239,334 (44,183) Add: Depreciation Charged Against Contributed Capital 249,939 227,450 RETAINED EARNINGS - January 1 1,501,448 1,318,181 RETAINED EARNINGS - December 31 $ 1,990,721 $ 1,501,448 c c c c ~ c c c ~. .. m c ~ .- W rM .. ~.i . C ~ 71 .. W ~ I CITY OF ANDOVER, MINNESOTA I SEWER FUND I COMPARATIVE BALANCE SHEET I December 31 2000 1999 ASSETS I CURRENT ASSETS: Cash and Cash Equivalents $ 999,154 $ 663,375 Special Assessments Receivable - I Deferred 8,462 8,462 Delinquent 2,222 2,443 Accounts Receivable 273,382 241,787 Interest Receivable 5,197 4,334 I Due From Other Governrnental Units 1,194 1,691 Due From Other Funds 332,000 233,611 Inventory 165 41 I Prepaid Items 41,379 39,960 Total Current Assets 1,663,155 1,195,704 I PROPERTY, PLANT AND EQUIPMENT: Fumiture and Equipment 168,111 168,111 Machinery 163,319 159,465 I Collection System 18,300,530 17,934,977 Total Cost 18,631,960 18,262,553 Less: Accumulated Depreciation (4,098,009) (3,729,289) I Net Property, Plant and Equipment 14,533,951 14,533,264 TOTAL ASSETS $ 16,197,106 $ 15,728,968 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: I Accounts Payable $ 3,296 $ 1,479 Accrued Items 2,821 5,658 Deferred Revenue 8,775 8,996 I Due to Other Funds 16,815 0 Total Current Liabilities 31,707 16,133 I COMPENSATED ABSENCES PAYABLE 14,726 14,076 Total Liabilities 46,433 30,209 I FUND EQUITY: Contributed Capital 14,367,048 14,344,608 Retained Earnings: Unreserved 1,783,625 1,354,151 I Total Fund Equity 16,150,673 15,698,759 TOTAL LIABILITIES AND FUND EQUITY $ 16,197,106 $ 15,728,968 I 72 I CITY OF ANDOVER, MINNESOTA SEWER FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 2000 and 1999 2000 Amount Percent 1999 Amount Percent OPERATING REVENUES: User Charges $ 1,081,682 98.4 % $ 967,018 98.5 % Penalties 17,611 1.6 14,080 1.4 Other 0 0.0 813 0.1 Total Operating Revenues 1,099,293 100.0 981,911 100.0 OPERATING EXPENSES: Personal Services 129,961 11.8 120,453 12.3 Supplies 10,510 1.0 8,366 0.8 Other Services and Charges 47,914 4.4 50,123 5.1 Disposal Charges 492,720 44.8 456,029 46.4 Depreciation 376,529 34.2 338,426 34.5 Total Operating Expenses 1,057,634 96.2 973,397 99.1 OPERATING INCOME 41,659 3.8 8,514 0.9 NON-OPERATING REVENUES: Investment Incorne 61,702 5.6 29,265 3.0 INCOME (LOSS) BEFORE OPERATING TRANFERS 103,361 9.4 % 37,779 3.9 % Operating Transfers Out (17,000) (60,587) NET INCOME (LOSS) 86,361 (22,808) Add: Depreciation Charged Against Contributed Capital 343,113 311,710 RETAINED EARNINGS - January 1 1,354,151 1,065,249 RETAINED EARNINGS - December 31 $ 1,783,625 $ 1,354,151 c c c ~ -. o c o c w m c ~ ~ ~ m .. w 73 w ~ ~ W I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies ofthe governrnent and to other governrnent units, on a cost reimbursement basis. CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET Year Ended December 31, 2000 With Comparative Total for December 31, 1999 Central Equipment Risk Totals Maintenance Management 2000 1999 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 84,046 $ 62,751 $ 146,797 $ 166,669 Accounts Receivable 718 0 718 6,391 Interest Receivable 0 390 390 720 Due from Other Funds 6,129 131 6,260 0 Inventory 23,134 0 23,134 13,098 Prepaid Items 0 32,468 32,468 0 TOTAL ASSETS $ 114,027 $ 95,740 $ 209,767 $ 186,878 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 5,959 $ 1,811 $ 7,770 $ 19,385 Accrued Items 5,541 374 5,915 6,243 Total Liabilities 11,500 2,185 13,685 25,628 FUND EQUITY: Retained Earnings - Unreserved 102,527 93,555 196,082 161,250 TOTAL LIABILITIES AND FUND EQUITY $ 114,027 $ 95,740 $ 209,767 $ 186,878 c c c c o c c c c ... ~ c m c c ~ W.I ~ W W 74 m I CITY OF ANDOVER, MINNESOTA I INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND I CHANGES IN RETAINED EARNINGS Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 I Central I Equipment Risk Totals Maintenance Management 2000 1999 OPERATING REVENUES: User Charges to Other City Funds $ 361,641 $ 0 $ 361,641 $ 373,369 I Refunds and Reimbursements 0 22,189 22,189 645 Total Operating Revenues 361,641 22,189 383,830 374,014 I OPERATING EXPENSES: Personal Services 128,346 7,901 136,247 137,924 Supplies 143,766 413 144,179 137,667 I Other Services and Charges 62,431 10,473 72,904 90,632 Total Operating Expenses 334,543 18,787 353,330 366,223 I OPERATING INCOME 27,098 3,402 30,500 7,791 NON-OPERATING REVENUES: I Investment Income (Loss) (481) 4,813 4,332 4,254 INCOME BEFORE OPERATING TRANSFERS 26,617 8,215 34,832 12,045 I Operating Transfers 0 0 0 (412) I NET INCOME 26,617 8,215 34,832 11,633 RETAINED EARNINGS - January 1 75,910 85,340 161,250 149,617 I RETAINED EARNINGS - December 31 $ 102,527 $ 93,555 $ 196,082 $ 161,250 I I I I I 75 I ~. ~ CITY OF ANDOVER, MINNESOTA INTERNAL SERVICE FUNDS C COMBINING STATEMENT OF CASH FLOWS C Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31,1999 Central 0 Equipment Risk Totals Maintenance Management 2000 1999 C CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income $ 27,098 $ 3,402 $ 30,500 $ 7,791 Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by C Operating Activities: Change in Assets and Liabilities: (Increase) Decrease in Accounts C Receivable 5,673 0 5,673 (5,987) (Increase) Decrease in Inventory (10,036) 0 (10,036) 4,218 (Increase) in Prepaid Items 0 (32,468) (32,468) 0 Increase (Decrease) in Accounts Payable (6,640) (4,975) (11,615) 11,190 C Increase (Decrease) in Accrued Items (472) 144 (328) 841 Total Adjustments (11,475) (37,299) (48,774) 10,262 Net Cash Provided (Used) by Operating Activities 15,623 (33,897) (18,274) 18,053 C CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: C Advances to Other Funds (6,129) (131) (6,260) 0 Transfers to Other Funds 0 0 0 (412) Net Cash Used by Noncapital Financing C Activities (6,129) (131 ) (6,260) (412) CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income (Loss) (267) 4,929 4,662 10,486 C NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,227 (29,099) (19,872) 28,127 0 CASH AND CASH EQUIVALENTS, January 1 74,819 91,850 166,669 138,542 CASH AND CASH EQUIVALENTS, December 31 $ 84,046 $ 62,751 $ 146,797 $ 166,669 C ~. III C C ~ ~ 76 C I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA AGENCY FUNDS Agency funds are used to account for assets held by the governrnent as an agent for individuals, private organizations, other governrnents and/or other funds. c c c o o c o c c c c ... UJ ~ ~ ~ w. 77 ~ ~ ~ to I CITY OF ANDOVER, MINNESOTA I AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES I Year Ended December 31, 2000 I Balance Balance January 1, December 31, 2000 Additions Deductions 2000 I ESCROW FUND ASSETS I Cash and Temporary Investments $ 524,998 $ 420,395 $ 417,080 $ 528,313 LIABILITIES Accounts Payable $ 840 $ 40,209 $ 36,756 $ 4,293 I Deposits Payable 524,158 420,505 420,643 524,020 Total Liabilities $ 524,998 $ 460,714 $ 457,399 $ 528,313 I GENERALAGENCYFUND I ASSETS Cash and Temporary Investments $ 0 $ 1,131,284 $ 967,787 $ 163,497 I Interest Receivable 0 5,184 0 5,184 Total Assets $ 0 $ 1,136,468 $ 967,787 $ 168,681 I LIABILITIES Due to Other Funds $ 0 $ 168,681 $ 0 $ 168,681 I TOTAL I ASSETS Cash and Temporary Investments $ 524,998 $ 1,551,679 $ 1,384,867 $ 691,810 Interest Receivable 0 5,184 0 5,184 I Total Assets $ 524,998 $ 1,556,863 $ 1,384,867 $ 696,994 I LIABILITIES Accounts Payable $ 840 $ 40,209 $ 36,756 $ 4,293 Deposits Payable 524,158 420,505 420,643 524,020 Due to Other Funds 0 168,681 0 168,681 I Total Liabilities $ 524,998 $ 629,395 $ 457,399 $ 696,994 I I I 78 ~ ~ CITY OF ANDOVER, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP c ~ ~ General Fixed Assets are those fixed assets of a governrnental 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. o ~ ~ c c c c . \ i .. c w ~ ro ro ro c ~ ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS Year Ended December 31,2000 Balance Additions Disposals Balance January I, and and December 31, 2000 Adjustments Adjustments 2000 GENERAL FIXED ASSETS: Land and Improvements $ 3,970,750 $ 0 $ 1,229,140 $ 2,741,610 Buildings and Improvements 3,194,450 4,996,847 0 8,191,297 Furniture and Equipment 964,583 112,353 0 1,076,936 Machinery and Equipment 4,658,104 581,084 0 5,239,188 INVESTMENT IN GENERAL FIXED ASSETS $ 12,787,887 $ 5,690,284 $ 1,229,140 $ 17,249,031 79 ~ ~ CITY OF ANDOVER, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP c ~ C General obligation bonds and other forms of long-term debt supported by general revenues are obligations of a governrnental unit as a whole and not its individual constituent funds. Moreover, the proceeds of such debt may be spent on facilities which are utilized in the operations of several funds. For these reasons the amount of unmatured, long-term indebtedness which is backed by the full faith and credit ofthe governrnent 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. ~ .. c ~ ~ ~ -.. .~ W w c ~ ~ 1'1 .. ~ 1M ill ~ ~ .. ~ ~ I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT AMOUNTS AVAILABLE AND TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG-TERM DEBT December 31 2000 1999 Amount Available in Debt Service Funds $ 7,406,642 23,701,551 $ 31,108,193 Amounts to be Provided GENERAL LONG-TERM DEBT Special Assessments on City Property $ 38,553 249,640 30,820,000 $ 31,108,193 Compensated Absences Payable Bonds and Certificates ofIndebtedness Payable $ 8,611,985 21,361,650 $ 29,973,635 $ 96,597 227,038 29,650,000 $ 29,973,635 80 ~ ~ c ~ ~ c ~ .. ~ .. c 11I\ I .. SUPPLEMENTARY INFORMATION o o ~ , ' .. c ~ ~ ~ ~ ~ m .. m .. m .. ~ , .. I I I I I I I I I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA SCHEDULE OF TAX CAPACITY RATES AND LEVIES TAXES PAYABLE IN 2000: Net Tax Capacity General Fund Bond Funds Watershed Levy $ 16,305,885 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 19.784 % 2.666 0.113 22.563 % Tax Capacity Rate 20.605 % 2.687 0.213 23.505 % Tax Capacity Rate 19.179 % 2.426 0.219 21.824 % Net Levy $ 3,437,905 463,280 18,898 $ 3,920,083 Net Levy $ 3,208,232 418,392 14,090 $ 3,640,714 Net Levy $ 2,832,312 358,178 14,090 $ 3,204,580 81 c o c c ~ ~ c c o ~ ~ STATISTICAL INFORMATION c c c c o c r- .. c ~ ~ o I I I Licenses Fiscal and Year Taxes Permits I 1991 $ 1,017,774 $ 230,298 1992 1,107,808 430,024 I 1993 1,241,114 470,371 1994 1,472,108 410,733 I 1995 1,810,213 410,212 1996 2,180,470 390,327 I 1997 2,383,965 456,413 1998 2,804,065 694,809 I 1999 3,125,776 609,344 2000 3,571,186 623,662 I I I I I I I I I I I CITY OF ANDOVER, MINNESOTA GENERAL FUND REVENUES BY SOURCE Years 1991 Through 2000 Intergovernmental Charges for Fines and Other Revenue Services Forfeits Revenue Total $ 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 5,701,095 969,317 900,235 82,443 309,237 6,456,080 82 o CITY OF ANDOVER, MINNESOTA GENERAL FUND EXPENDITURES BY FUNCTION Years 1991 Through 2000 Fiscal General Public Public Parks and Year Governrnent Safety Works Sanitation Recreation 1991 $ 579,797 $ 805,393 $ 374,138 $ 14,831 $ 245,097 1992 672,936 908,312 442,176 28,976 204,267 1993 720,178 937,371 520,802 36,904 232,809 1994 804,726 970,174 625,805 51,522 294,158 1995 932,460 1,060,210 637,551 34,795 329,416 1996 1,068,585 1,320,680 947,472 60,517 455,517 1997 1,252,047 1,409,087 1,044,183 95,632 383,059 1998 1,551,410 1,528,282 1,005,394 101,039 461,131 1999 1,700,086 1,820,436 1,363,875 119,957 579,916 2000 1,840,644 1,968,765 1,591,137 100,073 538,523 !III ~ c ~ C C o o o ~ ~ ~ ~ C C C c c c w I I I Economic I Recycling Development Unallocated $ 46,771 $ 17,447 $ 72,521 I 39,622 17,659 77,060 I 50,461 22,836 53,691 49,574 21,916 86,278 I 58,260 22 93,546 55,170 0 154,085 I 62,281 0 212,503 I 76,773 0 75,950 88,307 0 97,032 I 91,071 0 133,321 I I I I I I I I I Total $ 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 6,263,534 83 ~ CITY OF ANDOVER, MINNESOTA III PROPERTY TAX LEVIES AND COLLECTIONS C Years 1991 Through 2000 Percentage C Collection Percentage Collection of Total of Current of Levy of Prior Total Collections Year Total Levy Year's Levy Collected Years' Levy Collections to Levy ~ 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 C 1997 2,332,211 2,306,999 98.92 27,249 2,334,248 100.09 C 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 W 2000 3,321,907 3,283,671 98.85 171,702 3,455,373 104.02 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS U Years 1991 through 2000 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 ~ 1991 $ 1,450,030 $ 1,249,889 86.20 % $ 38,964 $ 1,288,853 88.88 % 1992 1,187,480 1,102,203 92.82 65,599 1,167,802 98.34 C 1993 816,859 793,128 97.09 68,760 861,888 105.51 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 ~ 1999 472,647 444,080 93.96 38,568 482,648 102.12 ~ 2000 433,242 424,854 98.06 36,374 461,228 106.45 Note: Tax levy is net of amounts paid by the State of Minnesota through Homestead and Agricultural Credit ~ ~ ' ' Aid (HACA) and Equalization Aid. 84 W -- --.----- 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 30, 2001 Honorable Mayor and City Council City of Andover Andover, Minnesota We have audited the financial statements of the City of Andover, Minnesota, as of and for the year ended December 31,2000, and have issued our report thereon dated March 30, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. 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. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material wealrnesses. A material wealrness 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material wealrnesses. However, we noted other matters involving the internal control over financial reporting, which we have reported to the Council ofthe City of Andover, Minnesota, in a separate letter dated March 30, 2001. 85 u ~ This report is intended solely for the information and use of management, City Council, state and ~ federal regulatory and oversight agencies and is not intended to be and should not be used by anyone other than these specified parties. I'- ~ K.eA ^-, ~ /ltkn...f:L.u, Vu.A-t, ~.J-d. C Kern, DeWenter, Viere, Ltd. St. Cloud, Minnesota I'll I.l c c ~ .. ~ !II\ ;. i .. ~ !' I Iii ~ I .. ~ iIIi ~ Ii .; III ~ ~ ~ ~ ~ ~ 86 . u 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 30, 2001 Honorable Mayor and City Council City of Andover Andover, Minnesota We have audited the general purpose financial statements of the City of Andover, Minnesota, as of and for the year ended December 31, 2000, and have issued our report thereon dated March 30, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all ofthe listed categories. The results of our tests indicate that for the items tested the City of Andover, Minnesota, complied with the material terms and conditions of applicable legal provisions. This report is intended solely for the information and use of management, City Council, and state regulatory and oversight agencies and is not intended to be and should not be used by anyone other than these specified parties. k.eA-~ I ~M/L.r.lAJ, VUA-L, L--I-d. Kern, DeWenter, Vi ere, Ltd. St. Cloud, Minnesota 87 CITY OF ANDOVER, MINNESOTA FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES c c ~ III C C C C ~ ~ c c ~ ~ ~ c ~ ~ . I .. 0 c C 88 C CURRENT YEAR FINDINGS: None PRIOR YEAR FINDINGS: None