HomeMy WebLinkAbout2001 CAFR
CITY OF ANDOVER, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2001
- This page intentionally left blank -
CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
Page
Number
I. INTRODUCTORY SECTION
Organization3
II. FINANCIAL SECTION
Independent Auditor's Report7
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account GroupsStatement 112
Combined Statement of Revenues, Expenditures and Changes in Fund Balance -
All Governmental Fund TypesStatement 215
Combined Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - General and Special Revenue Fund TypesStatement 316
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
All Proprietary Fund TypesStatement 418
Combined Statement of Cash Flows - All Proprietary Fund TypesStatement 519
Notes to Financial Statements21
Combining, Individual Fund and Account Group Financial Statements
General Fund:
Balance SheetStatement 651
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualStatement 752
Schedule of Revenues - Budget and ActualStatement 853
Schedule of Expenditures - Budget and ActualStatement 954
Special Revenue Funds:
Combining Balance SheetStatement 1062
Combining Statement of Revenues, Expenditures and Changes in Fund BalanceStatement 1164
Statements of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
Forestry FundStatement 1266
LRRWMO FundStatement 1367
Drainage and Mapping FundStatement 1468
EDA General FundStatement 1569
Trail and Transportation FundStatement 1670
Septic Disposal FundStatement 1771
CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
Page
Number
Right-of-Way Management/Utility FundStatement 1872
Capital Equipment Reserve FundStatement 1973
Developer Sealcoating FundStatement 2074
Oak Wilt Suppression FundStatement 2175
Debt Service Funds:
Combining Balance SheetStatement 2278
Combining Statement of Revenues, Expenditures and Changes in Fund BalanceStatement 2382
Capital Projects Funds:
Combining Balance SheetStatement 2489
Combining Statement of Revenues, Expenditures and Changes in Fund BalanceStatement 2593
Enterprise Funds:
Combining Balance SheetStatement 2698
Combining Statement of Revenue, Expenses and Changes in Retained EarningsStatement 2799
Combining Statement of Cash FlowsStatement 28100
Water Fund:
Comparative Balance SheetStatement 29101
Statement of Revenues, Expenses and Changes in Retained EarningsStatement 30102
Sewer Fund:
Comparative Balance SheetStatement 31103
Statement of Revenues, Expenses and Changes in Retained EarningsStatement 32104
Internal Service Funds:
Combining Balance SheetStatement 33106
Combining Statement of Revenues, Expenses and Changes in Retained EarningsStatement 34107
Combining Statement of Cash FlowsStatement 35108
Agency Funds:
Combining Balance SheetStatement 36110
Statement of Changes in Assets and LiabilitiesStatement 37111
General Fixed Assets Account Group:
Schedule of Changes in General Fixed AssetsStatement 38114
General Long-Term Debt Account Group:
Schedule of General Long-Term DebtStatement 39116
CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
Page
Number
Supplementary Financial Information
Combined Schedule of IndebtednessSchedule 1118
Debt Service Payments to Maturity:
General Obligation Revenue BondSchedule 2120
Special Assessment BondsSchedule 3121
Tax Increment BondsSchedule 4122
Certificates of IndebtednessSchedule 5123
Permanent Improvement Revolving BondsSchedule 6124
State Aid BondSchedule 7125
Schedule of Tax Capacity Rates and LeviesSchedule 8126
III. STATISTICAL SECTION
General Fund - Revenues by Source - Years 1992 through 2001Table 1128
General Fund - Expenditures by Function - Years 1992 through 2001Table 2129
- This page intentionally left blank -
I. INTRODUCTORY SECTION
1
- This page intentionally left blank -
2
CITY OF ANDOVER, MINNESOTA
ORGANIZATION
December 31, 2001
Elected OfficialsPositionTerm Expires
Michael R. GamacheMayorJanuary 7, 2003
Don JacobsonCouncilmemberJanuary 7, 2003
Mike KnightCouncilmemberJanuary 4, 2005
Ken OrttelCouncilmemberJanuary 4, 2005
Julie TrudeCouncilmemberJanuary 7, 2003
Appointed Officials
John ErarCity AdministratorAppointed
Jim DickinsonFinance DirectorAppointed
Shirley ClintonTreasurerAppointed
Victoria VolkClerkAppointed
3
- This page intentionally left blank -
4
II. FINANCIAL SECTION
5
- This page intentionally left blank -
6
- This page intentionally left blank -
8
- This page intentionally left blank -
10
GENERAL PURPOSE FINANCIAL STATEMENTS
11
CITY OF ANDOVER, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2001
Governmental Fund Types
SpecialDebtCapital
AssetsGeneralRevenueServiceProjects
Cash and investments (including cash equivalents)$3,420,044$2,145,498$6,245,282$10,432,663
Taxes receivable:
Delinquent67,22266061,680 -
Special assessments receivable:
Deferred251 - 2,498,3902,311,178
Delinquent386 - 22,8761,493
Accounts/loans receivable44,24166,502 - 73,116
Interest receivable13,18310,40630,69163,941
Due from other governmental units109,79741135,875109,673
Due from other funds - - 59,9281,323,395
Inventory74,627 - - -
Prepaid items7,116 - - -
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$3,736,867$2,223,477$8,954,722$14,315,459
Liabilities, Equity and Other Credits
Liabilities:
Accounts payable$88,610$9,168$ - $764,323
Accrued items140,2586,750 - -
Due to other governmental units20,068 - 262,685 -
Deposits payable - - - -
Developer advances - - - 624,413
Deferred revenue67,859404,7522,582,9462,371,770
Due to other funds - 11,29759,9281,223,133
Special assessments on City property - - - -
Bonds and certificates payable - - - -
Total liabilities316,795431,9672,905,5594,983,639
Equity and other credits:
Invested in general fixed assets - - - -
Contributed capital - - - -
Retained earnings:
Unreserved - - - -
Fund balance:
Reserved81,743 - 6,049,163 -
Unreserved:
Designated3,338,329 - - 10,401,769
Undesignated - 1,791,510 - (1,069,949)
Total equity and other credits3,420,0721,791,5106,049,1639,331,820
Total liabilities, equity and other credits$3,736,867$2,223,477 $8,954,722$14,315,459
The accompanying notes are an integral part of these financial statements.
12
Statement 1
FiduciaryAccount GroupsTotals
Proprietary Fund Types
InternalFund TypeGeneralGeneral Long-(Memorandum Only)
EnterpriseServiceAgencyFixed AssetsTerm Debt20012000
$2,565,358$158,345$539,183$ - $ - $25,506,373$19,895,971
- - - - - 129,56283,215
14,905 - - - - 4,824,7245,528,491
1,509 - - - - 26,26415,871
519,468 - - - - 703,327661,714
19,19321641,229 - - 178,859120,249
1,659 - - - - 257,415235,353
11,591 - - - - 1,394,9146,362,474
55,34129,306 - - - 159,274114,113
45,264 - - - - 52,38077,114
27,640,310 - - 17,979,074 - 45,619,38443,745,484
- - - - 6,049,1636,049,1637,406,642
- - - - 29,179,77129,179,77123,701,551
$30,874,598$187,867$580,412$17,979,074$35,228,934$114,081,410$107,948,242
$28,708$7,760$738$ - $ - $899,307$378,644
67,6778,131 - - 313,934536,750451,277
- - - - - 282,75312,954
- - 488,933 - - 488,933524,020
- - - - - 624,4131,225,949
14,504 - - - - 5,441,8316,197,409
9,815 - 90,741 - - 1,394,9146,362,473
- - - - - - 38,553
- - - - 34,915,00034,915,00030,820,000
120,70415,891580,412035,228,93444,583,90146,011,279
- - - 17,979,074 - 17,979,07417,249,031
27,541,358 - - - - 27,541,35826,285,503
- -
3,212,536171,976 - - - 3,384,5123,970,428
- - - - - 6,130,9067,519,445
- - - - - 13,740,0987,069,907
- - - - - 721,561(157,351)
30,753,894171,976017,979,074069,497,50961,936,963
$30,874,598$187,867$580,412$17,979,074$35,228,934$114,081,410$107,948,242
The accompanying notes are an integral part of these financial statements.
13
- This page intentionally left blank -
14
CITY OF ANDOVER, MINNESOTA
Statement 2
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 2001
Totals
SpecialDebtCapital(Memorandum Only)
GeneralRevenueServiceProjects20012000
Revenues:
General property taxes and
tax increments$3,982,174 $25,571 $1,329,188 $348,637 $5,685,570 $5,267,117
Special assessments - - 1,980,6601,967,1133,947,7733,923,600
Licenses and permits720,712 - - - 720,712623,662
Intergovernmental1,095,7271,750238,447318,6391,654,5632,193,689
Charges for services722,690383,832 - - 1,106,522998,188
Fines73,699 - - - 73,69982,443
Investment income128,70194,038223,944666,4151,113,0981,342,497
Miscellaneous201,221136,937 - 1,077,6581,415,8161,564,492
Total revenues6,924,924642,1283,772,2394,378,46215,717,75315,995,688
Expenditures:
Current:
General government1,704,797 - - - 1,704,7971,618,985
Public safety2,084,740 - - - 2,084,7401,966,369
Public works1,274,387163,368 - - 1,437,7551,649,418
Sanitation135,189 - - - 135,189100,073
Parks and recreation543,792 - - - 543,792507,420
Recycling108,390 - - - 108,39091,071
Economic development - 123,333 - - 123,333137,105
Miscellaneous145,068 - - - 145,068133,321
Capital outlay99,92033,764 - 7,257,3287,391,0129,590,288
Debt service - - 6,598,981 - 6,598,9815,972,315
Total expenditures6,096,283320,4656,598,9817,257,32820,273,05721,766,365
Revenues over (under) expenditures828,641321,663(2,826,742)(2,878,866)(4,555,304)(5,770,677)
Other financing sources (uses):
Operating transfers in90,00095,0002,000,874543,8122,729,6862,851,463
Operating transfers out(181,355)(17,021)(561,342)(430,673)(1,190,391)(2,755,502)
Bond proceeds - - 29,7318,910,2698,940,0005,795,000
Proceeds from sale of property - - - 236,573236,573452,365
Total other financing sources (uses)(91,355)77,9791,469,2639,259,98110,715,8686,343,326
Net increase (decrease) in fund balance737,286399,642(1,357,479)6,381,1156,160,564572,649
Fund balance - January 12,682,7861,391,8687,406,6422,950,70514,432,00113,859,352
Fund balance - December 31$3,420,072$1,791,510$6,049,163$9,331,820$20,592,565$14,432,001
The accompanying notes are an integral part of these financial statements.
15
CITY OF ANDOVER, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL AND SPECIAL REVENUE FUND TYPES
For The Year Ended December 31, 2001
General
Over
(Under)
Revenues:BudgetActualBudget
General property taxes and tax increments$4,031,155$3,982,174($48,981)
Licenses and permits872,020720,712(151,308)
Intergovernmental1,083,0041,095,72712,723
Charges for services573,260722,690149,430
Fines65,30073,6998,399
Investment income85,000128,70143,701
Miscellaneous223,000201,221(21,779)
Total revenues6,932,7396,924,924(7,815)
Expenditures:
Current:
General government1,798,9091,704,797(94,112)
Public safety2,163,2832,084,740(78,543)
Public works1,939,4651,274,387(665,078)
Sanitation177,790135,189(42,601)
Parks and recreation565,183543,792(21,391)
Recycling110,295108,390(1,905)
Economic development - - -
Miscellaneous141,552145,0683,516
Capital outlay315,15599,920(215,235)
Total expenditures7,211,632 6,096,283 (1,115,349)
Revenues over (under) expenditures(278,893)828,641 1,107,534
Other financing sources (uses):
Operating transfers in244,06790,000(154,067)
Operating transfers out - (181,355)(181,355)
Proceeds from sale of property - - -
Total other financing sources (uses)244,067 (91,355)(335,422)
Net increase (decrease) in fund balance($34,826)737,286 $772,112
Fund balance - January 12,682,786
Fund balance - December 31$3,420,072
The accompanying notes are an integral part of these financial statements.
16
Statement 3
Totals (Memorandum Only)
Special Revenue2001
OverOver
(Under)(Under)2000
BudgetActualBudgetBudgetActualBudgetActual
$25,759$25,571($188)$4,056,914$4,007,745($49,169)$3,590,640
- - - 872,020720,712(151,308)623,662
6,4251,750(4,675)1,089,4291,097,4778,048995,062
204,050383,832179,782777,3101,106,522329,212998,188
- - - 65,30073,6998,39982,443
66,47094,03827,568151,470222,73971,269248,445
135,302136,9371,635358,302338,158(20,144)290,659
438,006642,128204,1227,370,7457,567,052196,3076,829,099
- - - 1,798,9091,704,797(94,112)1,618,985
- - - 2,163,2832,084,740(78,543)1,966,369
243,438163,368(80,070)2,182,9031,437,755(745,148)1,649,418
- - - 177,790135,189(42,601)100,073
- - - 565,183543,792(21,391)507,420
- - - 110,295108,390(1,905)91,071
134,102123,333(10,769)134,102123,333(10,769)137,105
- - - 141,552145,0683,516133,321
82,50033,764(48,736)397,655133,684(263,971)465,436
460,040 320,465 (139,575)7,671,672 6,416,748 (1,254,924)6,669,198
(22,034)321,663 343,697 (300,927)1,150,304 1,451,231 159,901
220,00095,000(125,000)464,067185,000(279,067)452,061
(154,067)(17,021)137,046(154,067)(198,376)(44,309)(543,311)
- - - - - - 103,456
65,933 77,979 12,046 310,000 (13,376)(323,376)12,206
$43,899399,642 $355,743$9,0731,136,928 $1,127,855172,107
1,391,8684,074,6543,902,547
$1,791,510$5,211,582$4,074,654
The accompanying notes are an integral part of these financial statements.
17
CITY OF ANDOVER, MINNESOTA
Statement 4
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 2001
Internal
Totals (Memorandum Only)
EnterpriseService20012000
Operating revenues:
User charges$2,194,226$405,965$2,600,191$2,484,925
Meters38,356 - 38,35645,581
Permit fees13,900 - 13,90014,950
Penalties34,182 - 34,18234,360
Other32624,02724,35322,631
Total operating revenues2,280,990429,9922,710,9822,602,447
Operating expenses:
Personal services446,642171,743618,385656,285
Supplies65,871170,051235,922220,500
Other services and charges375,744113,472489,216209,059
Disposal charges506,338 - 506,338492,720
Depreciation746,417 - 746,417715,298
Total operating expenses2,141,012455,2662,596,2782,293,862
Net income (loss) from operations139,978(25,274)114,704308,585
Other income:
Investment income209,7581,168210,926147,903
Net income (loss) before operating transfers 349,736(24,106)325,630456,488
Other financing sources (uses):
Operating transfers out(1,539,295) - (1,539,295)(95,961)
Net income (loss)(1,189,559)(24,106)(1,213,665)360,527
Other increases:
Depreciation charged against contributed capital627,749 - 627,749593,052
Net increase (decrease) in retained earnings(561,810)(24,106)(585,916)953,579
Retained earnings - January 13,774,346196,0823,970,4283,016,849
Retained earnings - December 31$3,212,536$171,976$3,384,512$3,970,428
The accompanying notes are an integral part of these financial statements.
18
CITY OF ANDOVER, MINNESOTA
Statement 5
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 2001
Totals
Internal
(Memorandum Only)
EnterpriseService20012000
Cash flows from operating activities:
Operating income (loss)$139,978($25,274)$114,704$308,585
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation746,417 - 746,417715,298
Change in assets and liabilities:
Decrease (increase) in special assessments(5,730) - (5,730)221
Decrease (increase) in accounts receivable(2,156)718(1,438)(58,674)
Decrease (increase) in due from other governmental units(465) - (465)497
Decrease (increase) in inventory(27,004)(6,172)(33,176)(20,791)
Decrease (increase) in prepaid items(3,885)32,46828,583(33,887)
Increase (decrease) in accounts payable9,894(10)9,884(8,669)
Increase (decrease) in accrued items13,2492,21615,4654,641
Increase (decrease) in deferred revenue5,729 - 5,729(221)
Net cash flows from operating activities876,0273,946879,973907,000
Cash flows from noncapital financing activities:
Advances from other funds(14,000) - (14,000)23,815
Advances to other funds - 6,2606,260(104,649)
Payments of advances to other funds437,000 - 437,000118,410
Operating transfers to other funds(1,539,295) - (1,539,295)(95,961)
Net cash flows from noncapital financing activities(1,116,295)6,260(1,110,035)(58,385)
Cash flows from capital and related financing activities:
Acquisition of fixed assets(6,671) - (6,671)(86,205)
Cash flows from investing activities:
Investment income202,4221,342203,764146,490
Net increase (decrease) in cash and cash equivalents(44,517)11,548(32,969)908,900
Cash and cash equivalents - January 12,609,875146,7972,756,6721,847,772
Cash and cash equivalents - December 31$2,565,358 $158,345 $2,723,703 $2,756,672
Noncash investment, capital and financing activities:
System assets were contributed to the Enterprise Funds in 2001 as follows:
Water$766,358
Sewer$1,117,245
The accompanying notes are an integral part of these financial statements.
19
- This page intentionally left blank -
20
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Andover was incorporated in 1974 and operates under the State of Minnesota Statutory Plan A
form of government. The governing body consists of a five-member City council elected by voters of the
City.
The accounting policies of the City of Andover conform to accounting principles generally accepted in the
United States of America as applicable to governments. With respect to proprietary activities, the City has
applied all applicable Governmental Accounting Statement Board (GASB) pronouncements as well as
Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB)
Opinions issued on or before November 30, 1989 unless those pronouncements conflict with or contradict
GASB pronouncements.
A.FINANCIAL REPORTING ENTITY
As required by accounting principles generally accepted in the United States of America, the
financial statements of the reporting entity include those of the City of Andover (the primary
government) and its component units. The component units discussed below are included in the
City's reporting entity because of the significance of their operational or financial relationships
with the City.
COMPONENT UNITS
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component unit has been included in the financial reporting entity as a
blended component unit.
The Andover Economic Development Authority (EDA) is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's
operations because the members of the City Council serve as EDA Board Members and its purpose
is to promote development within the City of Andover. The activity of the EDA is reported in the
EDA General Special Revenue Fund. Separate financial statements are not prepared for the EDA.
B.FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and account groups, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues
and expenditures or expenses, as appropriate. Government resources are allocated and accounted
for in individual funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled.
21
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
The following types of funds and account groups are employed by the City:
GOVERNMENTAL FUNDS
General Fund - to account for all financial resources except those required to be
accounted for in another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources that are
legally restricted to expenditure for specified purposes.
Debt Service Funds - to account for the accumulation of resources for, and the payment
of, general long-term debt principal, interest, and related costs.
Capital Projects Funds - to account for financial resources to be used for the acquisition
or construction of major facilities other than those financed by Proprietary Funds.
PROPRIETARY FUNDS
Enterprise Funds - to account for operations: (a) that are financed and operated in a
manner similar to private business enterprises - where the intent of the governing body is
that the costs (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user
charges; or, (b) where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and/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 – 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.
FIDUCIARY FUNDS
Agency Funds - to account for assets held by a governmental unit in a trustee capacity or
as an agent for individuals, private organizations, other governmental units, and/or other
funds.
22
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular
fund; therefore, they generally include only current assets and current liabilities on their
balance sheets. The City maintains two account groups to account for noncurrent assets
and long-term liabilities as follows:
General Fixed Assets - The City maintains a separate account group which contains the
fixed assets used in the governmental fund type operations. They are assets of the City as
a whole and not of individual funds.
General Long-Term Debt - This account group contains the long-term obligations of the
City including general obligation bonds, certificates of indebtedness, contracts payable
and compensated absences payable. These long-term liabilities are expected to be
financed by the governmental funds.
C.MEASUREMENT FOCUS, FIXED ASSETS AND LONG-TERM LIABILITIES
The accounting and reporting treatment applied to the fixed assets and long-term liabilities
associated with a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or “financial flow” measurement focus. This means that only current
assets and current liabilities are generally included on their balance sheets. Their reported fund
balance (net current assets) is considered a measure of available spendable resources.
Governmental fund operating statements present increases (revenues and other financing sources)
and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are
said to present a summary of sources and uses of available spendable resources during a period.
Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in
the General Fixed Assets Account Group, rather than in governmental funds. Public domain
(“infrastructure”) general fixed assets, which are certain improvements other than buildings,
including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems,
are not capitalized by the City. No depreciation has been provided on general fixed assets.
All fixed assets are valued at their historical cost or estimated historical cost if actual cost is not
available. Donated fixed assets are valued at their estimated fair value on the date donated.
Because of their spending measurement focus, expenditure recognition for governmental fund
types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect
net current assets, long-term liabilities expected to be financed from governmental funds are
accounted for in the General Long-Term Debt Account Group, not in the governmental funds.
Such long-term amounts are not recognized as governmental fund type expenditures or fund
liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group.
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.
23
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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 noncurrent) associated with the
fund’s activities are included on the balance sheet. Proprietary fund type operating statements
present increases (revenues) and decreases (expenses) in net total assets.
Depreciation of all exhaustible fixed assets 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 improvements5 – 50 years
Equipment5 – 20 years
D.BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurement made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified accrual basis of accounting, in which
revenues are recognized when they become measurable and available as net current assets.
Major revenues that are susceptible to accrual include property taxes, intergovernmental revenues,
charges for services, and investment income. 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 if they are collected within 60 days after year end.
A one-year availability period is used for revenue recognition for all other governmental fund
revenues.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liabilities are incurred. Exceptions to this rule include sick pay and principal and
interest on general long-term debt, which are recognized when due.
All Proprietary Funds are accounted for using the accrual basis of accounting; revenues are
recognized when they are earned and expenses are recognized when they are incurred. Unbilled
utility service receivables are recorded at year end.
The City reports deferred revenue on the combined balance sheet. Deferred revenues arise when a
potential revenue does not meet both the “measurable” and “available” criteria for recognition in
the current period. Deferred revenues also arise when resources are received by the City before it
has a legal claim to them, or when grant monies are received prior to the incurrence of qualifying
24
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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.
The City has reported as deferred revenues the amount of $5,441,831, which consists of the
following:
Unearned grants and deposits$463,190
Property taxes receivable129,562
Special assessments receivable4,849,079
Total$5,441,831
E.BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America. Annual appropriated budgets are adopted for the General Fund and
Special Revenue Funds a separate budget report is issued at the beginning of each year.
Budgeted amounts are reported as originally adopted, or as amended by the City Council.
Individual amendments were not material in relation to the original appropriations which were
adjusted. Budgeted expenditure appropriations lapse at year end.
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1.The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The budget includes proposed expenditures and
the means of financing them.
2.Public hearings are conducted to obtain taxpayer comments.
3.The budget is legally enacted through City Council action.
4.Expenditures may legally exceed budgeted appropriations at the fund level through City
Council action. Also, the City Council may authorize transfers of budgeted amounts between
departments within any fund.
5.Formal budgetary integration is employed as a management control device during the year for
the General Fund and Special Revenue Funds. Budgetary control for Capital Projects Funds is
accomplished through the use of project controls.
6.The legal level of budgetary control is at the department level for the General Fund and at the
fund level for the Special Revenue Funds 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
25
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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.
F.ENCUMBRANCES
Encumbrances outstanding at year end expire and outstanding purchase orders are canceled and
not reported in the financial statements.
G.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 of 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.
H.TAXES RECEIVABLE
Delinquent taxes receivable represent the past six years of uncollected tax levies.
26
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
I.SPECIAL ASSESSMENTS
Special assessments represent the financing for public improvements paid for by benefiting
property owners. These assessments are recorded as receivables upon certification to the county or
upon completion of the project costs and passage of a Council resolution with the actual
certification taking place subsequent to year end. The corresponding revenue from the delinquent
(unremitted) and deferred (certified but not yet levied) special assessments receivable is deferred
until the year in which it becomes available (collected within 60 days of year end).
J.DUE FROM/TO OTHER FUNDS
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.”
K.INVENTORIES
The inventories of the General Fund and the Proprietary Funds are stated at cost on the first-in,
first-out basis. The General Fund accounts for inventory using the consumption method. General
Fund inventory consists of signs and miscellaneous other items. Proprietary Funds inventory
consists of water meters, miscellaneous parts and other items.
L.DEFERRED REVENUE
Deferred revenue represents delinquent taxes, deferred and delinquent assessments, loans
receivable and other unearned grants in all funds. This revenue is deferred until it is measurable
and available as net current assets.
M.COMPENSATED ABSENCES
City employees earn vacation and sick pay accruing each payroll period. Unused vacation can be
accrued by the employees up to a maximum of 200 hours as of the anniversary date of the
individual’s employment with the City. In the governmental fund types, the liability for vacation
pay is recognized in the General Fund to the extent it is expected to be paid from expendable
available financial resources. The remaining liability is recorded in the General Long-Term Debt
Account Group. Proprietary Fund types expense vacation pay as it accrues, with the liability being
recorded in the respective fund.
Employees can also accrue an unlimited amount of unused sick leave. Employees with two or
more years of service are entitled to receive severance pay equal to a percentage of unused sick
pay ranging from 20-50 percent based on years of service, up to a maximum of 400 hours. The
liability for severance pay is accounted for the same as accrued vacation pay.
27
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
N.REVENUES, EXPENDITURES AND EXPENSES
REVENUES
Property taxes are recognized as revenue when measurable and available. Intergovernmental
revenues are reported under the legal and contractual requirements of the individual programs.
Licenses and permits, charges for services, fines, and miscellaneous revenues, except investment
earnings, are recorded as revenues when received in cash because they are generally not
measurable until then. Investment income is recorded when earned because it is measurable and
available.
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 of taxes to be collected on each parcel of property to the County
Treasurer in January of each year. The County Treasurer collects all taxes and is required to mail
copies of all personal property tax statements by April 15, and copies of all real estate tax
statements by April 15, of each year. Property owners are required to pay one-half of their real
estate taxes due by May 15 and the balance by October 15.
If taxes due May 15 are not paid on time, a penalty of 3% is assessed on homesteaded property and
7% on nonhomesteaded 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 nonhomesteaded property until
January 1.
If the taxes are not paid by January 1, further penalties are added. Penalties and interest apply to
both taxes and special assessments. There are some exceptions to the above penalties, but they are
not material.
Within 30 days after the tax settlement date, the County Treasurer is required to pay 70% of the
estimated collections of taxes and special assessments to the City Treasurer. The County Treasurer
must pay the balance to the City Treasurer within 60 days after settlement, provided that after 45
days interest accrues at the rate of 8% per annum.
28
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
EXPENDITURES
Expenditure recognition for governmental fund types includes only amounts represented by current
liabilities. Since noncurrent liabilities do not affect net current assets, they are not recognized as
governmental fund expenditures for fund liabilities. They are reported as liabilities in the General
Long-Term Debt Account Group.
EXPENSES
Proprietary Fund types recognize expenses when they are incurred.
O.INTERFUND TRANSACTIONS
Quasi-external transactions are accounted for as revenues, expenditures and expenses.
Transactions that constitute reimbursements to a fund for expenditures or expenses initially made
from it that are properly applicable to another fund are recorded as expenditures or expenses in the
reimbursing fund and as a reduction of expenditures or expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external and reimbursements, are reported as
transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
P.COMPARATIVE DATA
Comparative total data for the prior year have been presented in the accompanying financial
statements in order to provide an understanding of changes in the City’s financial position and
operations.
Comparative data have been adjusted to reflect reclassifications of accounts for comparative
purposes.
Q.TOTAL COLUMNS ON GENERAL PURPOSE STATEMENTS
Total columns on the general purpose financial statements are captioned “memorandum only” to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position, results of operations, or changes in cash flows in conformity with
accounting principles generally accepted in the United States of America. Interfund eliminations
have not been made in the aggregation of this data.
29
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
R.USE OF ESTIMATES
The preparation of financial statements in accordance with accounting principles generally
accepted in the United States of America (GAAP) requires management to make estimates that
affect amounts reported in the financial statements during the reporting period. Actual results
could differ from such estimates.
Note 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.FUND DEFICITS
The following funds had deficit fund balances at December 31, 2001:
Special Revenue Funds:
Drainage and Mapping$14,048
Oak Wilt Suppression Program5,381
Capital Projects Funds:
Storm Sewer Project109,020
Unfinanced Projects836,250
Kelsey Round Lake Park Project9,687
Total$974,386
These deficits will be eliminated by transfers from other funds, collections of property tax levies or
proceeds from bond issues.
Note 3 DEPOSITS AND INVESTMENTS
A.DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not covered by
insurance or bonds (140% in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first
mortgage notes, and certain other state or local government obligations. Minnesota Statutes
require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a
financial institution other than that furnishing the collateral.
30
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Balances at December 31, 2001 are as follows:
BankCarrying
BalancesAmount
1)Insured or collateralized by securities held by the City
or its agent in the City's name.$152,388$849,990
2)Collateralized with securities held by the pledging institution
trust department in the City's name. - -
3)Uncollateralized or collateralized with securities
not in the City's name. - -
Totals$152,388$849,990
B.INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a)Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-
backed securities defined as high risk.
b)Shares of investment companies registered under the Federal Investment Company Act of
1940 and whose only investments are in securities described in (a) above, general
obligation tax-exempt securities, or repurchase or reverse repurchase agreements.
c)General obligations of the State of Minnesota or any of its municipalities.
d)Bankers acceptance of United States banks eligible for purchase by the Federal Reserve
System.
e)Commercial paper issued by United States corporations or their Canadian subsidiaries, of
the highest quality, and maturing in 270 days or less.
f)Repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota
securities broker-dealers; or, a bank qualified as a depositor.
31
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Balances at December 31, 2001 were:
Carrying
Amount
Custodial Credit Risk Category
Securities Type123(at Fair Value)
Negotiable CD's$1,720,765$ - $ - $1,720,765
State and local government securities1,135,897 - - 1,135,897
U.S. government and agency securities18,373,037 - - 18,373,037
Commercial paper2,245,710 - - 2,245,710
Totals$23,475,409$0$023,475,409
Investments not subject to credit risk categorization:
Minnesota municipal investment pool49,110
Open end mutual funds1,130,864
Total investment24,655,383
Deposits - checking account849,990
Total deposits and investments25,505,373
Petty cash1,000
Total cash and investments (including cash equivalents)$25,506,373
The City’s investments are categorized above to give an indication of the level of custodial credit risk
assumed at year end. Category 1 includes investments that are insured or registered or for which the
securities are held by the City or its agent in the City’s name. Category 2 includes uninsured or
unregistered investments for which the securities are held by the counterparty’s trust department or
agent in the City’s name. Category 3 includes uninsured and unregistered investments for which the
securities are held by the counterparty or by its trust department or agent but not in the City’s name.
Note 4 FLEXIBLE BENEFIT PLAN
The City offers a flexible benefit plan. The plan is a “cafeteria plan” under Section 125 of the Internal
Revenue Code. All employees who meet the eligibility requirements may participate in the plan. To be
eligible, an employee must regularly scheduled to work 30 hours per week.
Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to
the plan for health and dental care, dependent care, and other qualifying insurance benefits. Payments are
made from the plan to participating employees upon submitting a request for reimbursement of eligible
expenses actually incurred by the participant.
All assets of the plan are held by the City. The Plan is administered by the City for child care, out-of-
pocket medical expense reimbursements and qualifying insurance premiums.
All plan property and income attributable to that property is solely the property of the City, subject to the
claims of the City’s general creditors. Participants’ rights under the plan are equal to those of general
32
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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.
Note 5 INTERFUND RECEIVABLES AND PAYABLES
The following is a summary of interfund receivables and payables at December 31, 2001:
FundDue FromDue To
Special Revenue Funds:
Trail/Transportation$ - $11,297
Debt Service Funds:
G.O. Improvement Refunding Bonds of 1986C/1997C59,928 -
G.O. Improvement Bonds of 1993A - 59,928
Capital Projects Funds:
Water Trunk Project25,747 -
Sewer Trunk Project - 5,611
Road and Bridge Fund90,741 -
Tax Increment Projects1,190,0001,191,775
Park Dedication Fund1,518 -
Permanent Improvement Revolving15,38925,747
Enterprise Funds:
Water11,591 -
Sewer - 9,815
Agency Funds:
General Agency Fund - 90,741
Total$1,394,914$1,394,914
33
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 6 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
BalanceBalance
1/1/01AdditionsDeletions12/31/01
Land and improvements$2,741,610$ - $ - $2,741,610
Buildings and improvements8,191,297 - - 8,191,297
Furniture and equipment1,076,93628,739 - 1,105,675
Machinery and equipment5,239,188801,951100,6475,940,492
Totals$17,249,031$830,690$100,647$17,979,074
A summary of Proprietary Fund type fixed assets at December 31, 2001 is as follows:
WaterSewerTotal
Furniture and equipment$813,902$168,111$982,013
Machinery992,843163,3191,156,162
Collection and distribution14,096,78019,417,77533,514,555
Total15,903,525 19,749,205 35,652,730
Less: allowance for depreciation(3,519,567)(4,492,853)(8,012,420)
Net fixed assets$12,383,958$15,256,352$27,640,310
Note 7 LOANS RECEIVABLE
As part of a development agreement entered into with a private developer in May 1989, the City received a
promissory note for $243,520. The note is to reimburse the City for the fiscal disparities contributions the
City lost due to the establishment of a tax increment financing district for the development project. The
note bears an interest rate of 5.50% and calls for 180 equal monthly payments to be made to the City
through August 2003. At December 31, 2001, the remaining principal due of $59,098 is offset by deferred
revenue as it is not available to finance current activities.
34
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 8 PENSION PLANS
A.DEFINED BENEFIT PENSION PLANS - STATEWIDE
PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Andover are covered by defined
benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees
Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These
plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and
356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new members must
participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify
for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest after
three years of credited service. The defined retirement benefits are based on a member’s highest
average salary for any five successive years of allowable service, age, and years of credit at
termination of service.
Two methods are used to compute benefits for PERF’s Coordinated and Basic Plan members. The
retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level
accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is
2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each
remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average
salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the
annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for
Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate
is 3.0 percent for each year of service. For all PEPFF members and for PERF members whose
annuity is calculated using Method 1, a full annuity is available when age plus years of service
equal 90. A reduced retirement annuity is also available to eligible members seeking early
retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a
lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are
also various types of joint and survivor annuity options available which will reduce the monthly
normal annuity amount, because the annuity is payable over joint lives. Members may also leave
their contributions in the fund upon termination of public service in order to qualify for a deferred
annuity at retirement age. Refunds of contributions are available at any time to members who
leave public service, but before retirement benefits begin.
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.
35
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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, 60 Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by calling (651)296-7460 or 1-
800-652-9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions
to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 8.75% and 4.75%, respectively, of their
annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered
salary. The City of Andover is required to contribute the following percentages of annual covered
payroll: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and
9.30% for PEPFF members. Member and employer contribution rates for Basic and Coordinated
members will increase by 0.35% effective January 2002. The City’s contributions to the Public
Employees Retirement Fund for the years ending December 31, 2001, 2000 and 1999 were
$116,799, $103,062 and $101,966, respectively. The City’s contributions to the Public Employees
Police and Fire Fund for the years ending December 31, 2001, 2000 and 1999 were $5,866, $5,512
and $5,773, respectively. The City’s contributions were equal to the contractually required
contributions for each year as set by state statute.
C.DEFINED CONTRIBUTION LUMP SUM SERVICE PENSION PLAN – VOLUNTEER
FIREFIGHTERS RELIEF ASSOCIATION
The most recent information available is December 31, 2000.
PLAN DESCRIPTION
Members of the City’s volunteer fire department are members of the Andover Firefighters’ Relief
Association. The Association is a single-employer defined contribution plan that was established
in 1979 and operates under the provisions of Minnesota Statutes Section 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.
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.
36
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
The service pension prescribed by the Association’s bylaws is a lump sum settlement equal to the
amount in the individual member’s account at the time of retirement. The individual member
accounts are credited with an equal share of: any fire state aid received by the Association, any
municipal contributions to the Association, and any other assets of the Association’s Special
Pension Fund.
The bylaws of the Association also provide for a reduced service pension for a retiring member
who has completed fewer than 20 years of service. The reduced pension, available to members
with 10 years of service, shall be equal to 60% of the pension as prescribed by the bylaws. This
percentage increases 4% per year so that at 20 years of service, the full amount prescribed is paid.
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 during the period of
deferral. The interest rate will be compounded annually, at the rate actually earned on the assets of
the Special Pension Fund, not to exceed 5% per year.
An active member of the Association who becomes disabled to the extent that a physician shall
certify that such disability will permanently prevent the member from performing his duties in the
Andover Fire Department, is entitled to a disability pension equal to the balance in the member’s
account after 100 days of disability. If a member who has received such a disability pension
should subsequently recover and return to active duty in the Andover Fire Department, any amount
paid to him as a disability pension shall be deducted from his service pension accrued at the time
of such disability.
Upon the death of any member of the Association who is in good standing at the time of death, the
Association shall pay the member’s spouse, children, or estate the balance of the member’s
account at the date of payment.
The City of Andover has the power to levy property taxes at the direction and for the benefit of the
Association, and passes through state aids allocated to the plan, in accordance with enabling State
Statutes.
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 2001, the City contributed $126,633 to the Association, consisting of $84,983 state aid and
$41,650 fulfilling the City’s $750 per member contribution obligation for the year ended
December 31, 2001. The City’s contribution represents 26.3% of covered payroll.
37
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 9 CITY INDEBTEDNESS
The following is a summary of long-term debt transactions of the City for the year ended December 31,
2001:
BalanceBalance
01/01/01AdditionsDeletions12/31/01
General Long-Term Debt Account Group:
Bonded debt:
General obligation$240,000$ - $240,000$ -
General obligation revenue bonds2,230,000 - 55,0002,175,000
Special assessment bonds 12,435,000 - 3,850,0008,585,000
Tax increment bonds11,515,000 - 475,00011,040,000
Certificates of indebtedness1,050,0001,210,000225,0002,035,000
Permanent improvement revolving bonds3,350,0004,975,000 - 8,325,000
State aid bonds - 2,755,000 - 2,755,000
Assessments on City property38,553 - 38,553 -
Compensated absences249,64064,294 - 313,934
Total general long-term debt$31,108,193$9,004,294$4,883,553$35,228,934
38
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Long-term debt at December 31, 2001 is composed of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/01
General Long-Term Debt:
General obligation revenue bonds:
Public Project Revenue Bonds of 199709/01/9712/01/164.50-5.90%$2,350,000$2,175,000
Special assessment bonds:
G.O. Improvements Bonds of 1993A08/01/9308/01/034.00-4.75%3,650,000730,000
G.O. Improvements Bonds of 1994C10/01/9402/01/065.05-5.75%1,140,000575,000
G.O. Improvements Bonds of 1995A07/01/9502/01/064.85-5.30%2,605,0001,460,000
G.O. Improvement Bonds of 1997A05/01/9712/01/024.20-4.80%3,120,000605,000
G.O. Improvement Bonds of 1997B07/01/9712/01/053.90-4.70%6,315,0003,100,000
G.O. Improvement Bonds of 199910/01/9912/01/043.75-4.40%3,525,0002,115,000
Total special assessment bonds8,585,000
Tax increment bonds:
G.O. Tax Increment Refunding Bonds of 1994B05/01/9405/01/046.97-7.87%885,000255,000
G.O. Tax Increment Bonds of 1995D10/01/9502/01/134.50-5.60%6,055,0005,225,000
G.O. Tax Increment Bonds of 199606/01/9608/01/124.75-5.40%2,055,0001,715,000
G.O. Tax Increment Bonds of 199906/01/9912/01/124.00-5.00%1,500,0001,450,000
G.O. Tax Increment Bonds of 2000A09/01/0002/01/106.75-7.10%2,445,0002,395,000
Total tax increment bonds11,040,000
Certificates of Indebtedness:
1999 G.O. Equipment Certificates06/01/9902/01/043.70-4.00%1,050,000825,000
G.O. Capital Notes 2001C06/05/0102/01/062.90-3.80%1,210,0001,210,000
Total certificates of indebtedness2,035,000
Permanent Improvement Revolving Bonds:
G.O. Permanent Improvement Revolving Bonds of 2000B09/01/0002/01/074.20-4.375%3,350,0003,350,000
G.O. Permanent Improvement Revolving Bonds of 2001A06/05/0102/01/073.20-4.00%4,975,0004,975,000
Total permanent improvement revolving bonds8,325,000
State Aid Bonds:
G.O. State Aid Bonds 2001B06/05/0102/01/172.90-5.00%2,755,0002,755,000
Compensated absences payableN/AN/AN/A313,934313,934
Total general long-term debt$35,228,934
39
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
The annual requirements to amortize all bonded debt outstanding as of December 31, 2001 including
interest payments of $8,569,445 are as follows:
GeneralPermanent
YearObligationSpecialTaxCertificatesImprovementState
EndingRevenueAssessmentIncrementofRevolvingAid
December 31,BondsBondsBondsIndebtednessBondsBondsTotal
2002$183,310$3,227,579$1,188,067$542,920$354,868$238,447$5,735,191
2003190,3102,506,3561,215,472548,9381,827,196238,0306,526,302
2004196,7402,053,6951,318,739574,6181,834,750239,0306,217,572
2005202,5801,274,6431,403,155269,7231,837,364239,5455,227,010
2006207,810415,9451,455,885270,0351,844,915239,6184,434,208
2007-20111,124,600 - 6,698,296 - 1,842,4691,217,67510,883,040
2012-20161,300,205 - 1,682,930 - - 1,231,2374,214,372
2017-2021 - - - - - 246,750246,750
Total$3,405,555$9,478,218$14,962,544$2,206,234$9,541,562$3,890,332$43,484,445
Note 10 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, 2001, the following revenue bonds were outstanding:
Date ofOriginalOutstanding
ProjectIssueIssueRetired12/31/01
Downtown Center7/15/97$5,645,000$1,210,000$4,435,000
Downtown Center7/15/971,250,000345,000905,000
Presbyterian Homes of Andover, Inc.12/1/9813,980,000420,00013,560,000
Presbyterian Homes of Andover, Inc.12/1/98720,000 - 720,000
Total$21,595,000$1,975,000$19,620,000
40
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 11 FUND EQUITY
Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective
funds:
A.INVESTMENT IN GENERAL FIXED ASSETS
Represents the City’s equity in general fixed assets.
B.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, 2001 is as follows:
Enterprise Funds
WaterSewer
FundFundTotal
Contributed capital - January 1, 2001$11,918,455$14,367,048$26,285,503
Add: 2001 Contributions766,3581,117,2461,883,604
Less: Depreciation on contributed assets(262,782)(364,967)(627,749)
Contributed capital - December 31, 2001$12,422,031$15,119,327$27,541,358
41
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
C.FUND BALANCE
Fund balances are classified as follows to reflect limitations and restrictions of the respective
funds:
SpecialDebtCapital
GeneralRevenueServiceProjectsTotal
Reserved:
Inventory$74,627$ - $ - $ - $74,627
Prepaid items7,116 - - - 7,116
Debt service - - 6,049,163 - 6,049,163
Total reserved 81,74306,049,16306,130,906
Unreserved:
Designated for working capital2,773,096 - - - 2,773,096
Designated for projects - - - 9,794,0579,794,057
Designated for equipment - - - 607,712607,712
Designated for pavement
management program565,233 - - - 565,233
Total unreserved3,338,3290010,401,76913,740,098
Undesignated - 1,791,510 - (1,069,949)721,561
Total fund balance$3,420,072$1,791,510$6,049,163$9,331,820$20,592,565
D.RETAINED EARNINGS
Retained earnings balances are unreserved at December 31, 2001.
42
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 12 SEGMENT INFORMATION
The City maintains Water and Sewer Enterprise Funds. Segment information for the year ended December
31, 2001 is as follows:
WaterSewer
FundFundTotal
Operating revenues$1,110,389$1,170,601$2,280,990
Operating expenses1,037,4351,103,5772,141,012
Depreciation expense351,573394,844746,417
Operating income72,95467,024139,978
Operating transfers - net(913,673)(625,622)(1,539,295)
Net income(726,383)(463,176)(1,189,559)
Contributed capital12,422,03115,119,32727,541,358
Net working capital1,592,4251,568,9733,161,398
Fixed asset purchases6,671 - 6,671
Total assets14,017,10116,857,49730,874,598
Total equity13,949,15116,804,74330,753,894
43
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 13 TAX INCREMENT DISTRICTS
The City of Andover is the administering authority for the following tax increment finance districts:
1.Name of District:Andover Redevelopment District 1-1
Type of District:Redevelopment
Authorizing Law:M.S. Section 472
Established:1986
Duration of District:Through 2012
Original net tax capacity$28,122
Current net tax capacity301,436
Captured net tax capacity - retained by City$273,314
2.Name of District:Andover Redevelopment District 1-2
Type of District:Redevelopment
Authorizing Law:M.S. Section 472
Established:1986
Duration of District:Through 2012
Original net tax capacity$63,302
Current net tax capacity707,434
Captured net tax capacity - retained by City$644,132
Total District 1 Bonds issued$13,460,000
Amounts redeemed2,420,000
Bonds outstanding at December 31, 2001$11,040,000
3.Name of District:Tax Increment Financing District No. 1-3
(Farmstead Project)
Type of District:Redevelopment
Authorizing Law:M.S. Section 469
Established:1997
Duration of District:Through 2024
Original net tax capacity$13,533
Current net tax capacity186,547
Captured net tax capacity - retained by City$173,014
44
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 14 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 (LMCIT), a public entity risk pool for its general property and casualty, workers’
compensation, and other miscellaneous insurance coverages. The LMCIT operates as a common risk
management and insurance program for approximately 780 cities. The City pays an annual premium to the
LMCIT for insurance coverage. The LMCIT 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 risks have not exceeded commercial insurance coverage in
any of the past fiscal years.
Note 15 COMMITMENTSAND CONTINGENCIES
A.COMMITMENTS
The City has several commitments outstanding at year end for various construction projects. They
are summarized as follows:
Expended
ProjectThroughRemaining
ProjectAuthorization12/31/01Commitment
#98-29 Grey Oaks$416,178$41,178$375,000
#00-16 Grey Oaks Phase II391,371362,83428,537
#00-17 Trail 7th Avenue South of Bunker26,03921,0295,010
#00-18 Andover Blvd.1,730,5781,179,591550,987
#00-40 Woodland Oaks891,661873,31218,349
#00-41 Red Pine Fields943,133882,50360,630
#01-02 Ball Field Facility / West of HS211,789159,47752,312
45
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
B.CONTINGENCIES
The City of Andover, in connection with the normal conduct of its affairs, is involved in various
claims, judgments, and litigation. The City attorney has indicated that existing and pending
lawsuits, claims and other actions in which the City is a defendant are either covered by insurance,
of an immaterial amount; or in the judgment of the City attorney, remotely recoverable by
plaintiffs.
C.FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance
with the terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, any such disallowed claims will not
have a material effect on any of the financial statements of the individual fund types included
herein or on the overall financial position of the City at December 31, 2001.
D.TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of the
State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability
of the applicable fund. Management has indicated that they are not aware of any instances of
noncompliance which would have a material effect on the financial statements.
46
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP FINANCIAL STATEMENTS
47
- This page intentionally left blank -
48
GENERAL FUND
The General Fund is established to account for the revenues and expenditures
necessary to carry out basic governmental activities of the City such as general
government, public safety, public works, and parks and recreation. Revenue is
recorded by source: i.e., general property taxes, licenses and permits, fines,
charges for services, 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.
49
- This page intentionally left blank -
50
CITY OF ANDOVER, MINNESOTA
Statement 6
GENERAL FUND
BALANCE SHEET
December 31, 2001
With Comparative Amounts For December 31, 2000
Totals
Assets20012000
Cash and investments$3,420,044$2,148,692
Delinquent taxes receivable67,22253,544
Special assessments receivable:
Deferred25146
Delinquent386257
Accounts receivable44,24151,364
Interest receivable13,1839,497
Due from other governmental units109,797111,060
Due from other funds - 613,702
Inventory74,62762,642
Prepaid items7,1163,267
Total assets$3,736,867$3,054,071
Liabilities and Fund Balance
Liabilities:
Accounts payable$88,610$168,046
Accrued items140,258136,438
Due to other governmental units20,06812,954
Deferred revenue67,85953,847
Total liabilities316,795 371,285
Fund balance:
Reserved for prepaid items7,1163,267
Reserved for inventory74,62762,642
Unreserved:
Designated for working capital2,773,0962,583,650
Designated for pavement management program565,233 -
Undesignated - 33,227
Total fund balance3,420,072 2,682,786
Total liabilities and fund balance$3,736,867$3,054,071
51
CITY OF ANDOVER, MINNESOTA
Statement 7
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
General property taxes$4,031,155$3,982,174($48,981)$3,571,186
Licenses and permits872,020720,712(151,308)623,662
Intergovernmental1,083,0041,095,72712,723969,317
Charges for services573,260722,690149,430900,235
Fines65,30073,6998,39982,443
Investment income85,000128,70143,701104,657
Miscellaneous223,000201,221(21,779)204,580
Total revenues6,932,739 6,924,924 (7,815)6,456,080
Expenditures:
Current:
General government1,798,9091,704,797(94,112)1,618,985
Public safety2,163,2832,084,740(78,543)1,966,369
Public works1,939,4651,274,387(665,078)1,583,234
Sanitation177,790135,189(42,601)100,073
Parks and recreation565,183543,792(21,391)507,420
Recycling110,295108,390(1,905)91,071
Miscellaneous141,552145,0683,516133,321
Capital outlay315,15599,920(215,235)263,061
Total expenditures7,211,6326,096,283(1,115,349)6,263,534
Revenues over (under) expenditures(278,893)828,6411,107,534192,546
Other financing sources (uses):
Operating transfers in244,06790,000(154,067)81,961
Operating transfers out - (181,355)(181,355)(370,100)
Total other financial sources (uses)244,067(91,355)(335,422)(288,139)
Net increase (decrease) in fund balance($34,826)737,286$772,112(95,593)
Fund balance - January 12,682,7862,778,379
Fund balance - December 31$3,420,072$2,682,786
52
CITY OF ANDOVER, MINNESOTA
Statement 8
GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
General property taxes$4,031,155$3,982,174($48,981)$3,571,186
Licenses and permits872,020720,712(151,308)623,662
Intergovernmental:
CDBG grants18,00020,9222,92221,058
Local government aid119,758119,758 - 119,752
HACA and local performance aid489,896489,99195381,601
COPS grant68,75068,750 - 93,750
Street maintenance140,000140,000 - 140,000
Fire department aid63,00084,98321,98364,082
Other grants183,600171,323(12,277)149,074
Total intergovernmental1,083,0041,095,72712,723969,317
Charges for services:
General government569,510718,895149,385895,785
Utility funds3,7503,795454,450
Total charges for services573,260722,690149,430900,235
Fines65,30073,6998,39982,443
Investment income85,000128,70143,701104,657
Miscellaneous:
Rent33,00031,679(1,321)32,672
Refunds and reimbursements25,00012,109(12,891)16,367
Street light fees146,900142,387(4,513)139,608
Computer services17,50012,500(5,000)12,000
Other6002,5461,9463,933
Total miscellaneous223,000 201,221 (21,779)204,580
Total revenues$6,932,739$6,924,924($7,815)$6,456,080
53
CITY OF ANDOVER, MINNESOTA
Statement 9
GENERAL FUND
Page 1 of 6
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Expenditures:
General government:
Mayor and City council:
Personal services$38,943$39,233$290$37,410
Materials and supplies400362(38)246
Purchased services16,37317,34997615,738
Other services and charges19,12517,611(1,514)18,246
Total mayor and City council74,841 74,555 (286)71,640
Newsletter:
Materials and supplies - 149149 -
Purchased services25,00024,519(481)18,723
Total newsletter25,00024,668(332)18,723
City clerk:
Personal services90,323 89,500 (823)85,547
Materials and supplies1,2001,053(147)917
Purchased services18,75616,675(2,081)14,784
Other services and charges1,615753(862)1,160
Total111,894107,981(3,913)102,408
Capital outlay2,2001,833(367) -
Total City clerk114,094109,814(4,280)102,408
Administration:
Personal services95,921 92,511 (3,410)68,932
Materials and supplies3,0102,981(29)1,444
Purchased services20,73019,611(1,119)11,487
Other services and charges3,7003,338(362)4,534
Total administration123,361118,441(4,920)86,397
Financial administration:
Personal services215,866 212,589 (3,277)199,873
Materials and supplies4,3002,376(1,924)2,759
Purchased services6,8795,696(1,183)6,961
Other services and charges5,8503,239(2,611)4,153
Total 232,895223,900(8,995)213,746
Capital outlay3,5002,665(835)2,100
Total financial administration236,395226,565(9,830)215,846
54
CITY OF ANDOVER, MINNESOTA
Statement 9
GENERAL FUND
Page 2 of 6
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
General government (continued):
Elections:
Personal services$1,637$1,634($3)$14,934
Materials and supplies - - - 369
Purchased services - - - 504
Total 1,6371,634(3)15,807
Capital outlay10,00010,000 - 10,000
Total elections11,63711,634(3)25,807
Assessing:
Purchased services84,50092,0377,53783,784
Legal and accounting:
Purchased services138,500138,403(97)126,466
Planning and zoning:
Personal services221,958 192,488 (29,470)196,362
Materials and supplies5,0005,1801802,495
Purchased services11,40711,384(23)11,595
Other services and charges8,0664,670(3,396)4,588
Total 246,431213,722(32,709)215,040
Capital outlay2,5002,396(104) -
Total planning and zoning248,931216,118(32,813)215,040
Data processing:
Personal services61,465 61,262 (203)26,635
Materials and supplies51,05042,939(8,111)53,885
Total 112,515104,201(8,314)80,520
Capital outlay25,00021,560(3,440)17,586
Total data processing137,515125,761(11,754)98,106
City Hall building:
Materials and supplies7,25010,3773,1275,500
Purchased services40,99343,1502,15740,168
Other services and charges23,12519,168(3,957)16,735
Total71,36872,6951,32762,403
Capital outlay2,500958(1,542) -
Total City hall building73,86873,653(215)62,403
55
CITY OF ANDOVER, MINNESOTA
Statement 9
GENERAL FUND
Page 3 of 6
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
General government (continued):
Fire department building:
Materials and supplies$5,400$2,202($3,198)$1,297
Purchased services39,58939,6647535,182
Other services and charges9,30010,7991,49910,205
Total fire department building54,28952,665(1,624)46,684
Public works building:
Materials and supplies20,00011,009(8,991)9,529
Purchased services52,70061,2078,50757,895
Other services and charges23,00024,5131,51317,220
Total 95,70096,7291,02984,644
Capital outlay183,855798(183,057)185,069
Total public works building279,55597,527(182,028)269,713
Senior citizen center:
Materials and supplies80067(733)915
Purchased services7,5858,6971,1127,319
Other services and charges4,1004,8847843,588
Total senior citizen center12,48513,6481,16311,822
Equipment building:
Materials and supplies1,00050(950) -
Purchased services10,5091,781(8,728)11,254
Other services and charges1,400 - (1,400) -
Total 12,9091,831(11,078)11,254
Capital outlay6,000 - (6,000) -
Total equipment building18,9091,831(17,078)11,254
City hall garage:
Materials and supplies35028(322)12
Purchased services1,946188(1,758)528
Total City hall garage2,296216(2,080)540
Field of Dreams building:
Materials and supplies6,5503,954(2,596)7,308
Purchased services12,45712,272(185)17,027
Other services and charges13,00011,534(1,466)7,463
Total Field of Dreams building32,00727,760(4,247)31,798
56
CITY OF ANDOVER, MINNESOTA
Statement 9
GENERAL FUND
Page 4 of 6
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Public safety (continued):
Engineering:
Personal services$302,500$307,358$4,858$323,307
Materials and supplies18,5008,039(10,461)8,696
Purchased services13,5196,317(7,202)7,580
Other services and charges31,76217,997(13,765)15,726
Total 366,281339,711(26,570)355,309
Capital outlay11,3505,567(5,783)6,904
Total engineering377,631345,278(32,353)362,213
Total general government2,045,8141,750,574(295,240)1,840,644
Public safety:
Police:
Purchased services1,106,6161,103,016(3,600)1,062,430
Fire protection:
Personal services462,337427,696(34,641)394,610
Materials and supplies32,25020,003(12,247)23,734
Purchased services18,90316,930(1,973)16,094
Other services and charges138,668131,167(7,501)113,852
Total 652,158595,796(56,362)548,290
Capital outlay17,000 - (17,000)2,396
Total fire protection669,158595,796(73,362)550,686
Protective inspection:
Personal services336,394 337,775 1,381300,740
Materials and supplies15,3005,775(9,525)4,692
Purchased services8,8685,619(3,249)5,863
Other services and charges13,77117,8924,12118,239
Total 374,333367,061(7,272)329,534
Capital outlay3,2503,184(66) -
Total protective inspection377,583370,245(7,338)329,534
Civil defense:
Personal services3,539 3,443 (96)3,313
Materials and supplies6,9001,346(5,554)8,284
Purchased services1,5571,264(293)1,204
Other services and charges4,5004,459(41)540
Total civil defense16,49610,512(5,984)13,341
57
CITY OF ANDOVER, MINNESOTA
Statement 9
GENERAL FUND
Page 5 of 6
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Public safety (continued):
Animal control:
Materials and supplies$105$185$80$68
Purchased services13,5758,170(5,405)12,706
Total animal control13,6808,355(5,325)12,774
Total public safety2,183,5332,087,924(95,609)1,968,765
Public works:
Streets and highways:
Personal services149,969 296,260 146,291230,133
Materials and supplies30,20028,680(1,520)26,579
Purchased services19,95017,300(2,650)16,772
Other services and charges908,252308,302(599,950)595,762
Total 1,108,371650,542(457,829)869,246
Capital outlay - - - 1,103
Total streets and highways1,108,371650,542(457,829)870,349
Snow and ice removal:
Personal services251,481192,237(59,244)200,509
Materials and supplies149,40079,405(69,995)160,569
Purchased services4,9002,630(2,270)2,262
Other services and charges95,73388,900(6,833)79,243
Total snow and ice removal501,514363,172(138,342)442,583
Street lighting:
Purchased services28,000 24,149 (3,851)22,481
Other services and charges40075(325) -
Billed services141,150127,578(13,572)129,041
Total 169,550151,802(17,748)151,522
Capital outlay8,0009,2551,2551,480
Total street lighting177,550161,057(16,493)153,002
Street signs:
Personal services70,208 62,714 (7,494)65,006
Materials and supplies35,20023,668(11,532)34,247
Purchased services421285(136)141
Other services and charges24,2018,230(15,971)7,123
Total 130,03094,897(35,133)106,517
Capital outlay - 8498495,320
Total street signs130,03095,746(34,284)111,837
Traffic signals:
Purchased services30,00013,974(16,026)13,366
Total public works1,947,4651,284,491(662,974)1,591,137
58
CITY OF ANDOVER, MINNESOTA
Statement 9
GENERAL FUND
Page 6 of 6
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Sanitation:
Storm sewers:
Personal services$53,570$44,106($9,464)$43,018
Materials and supplies7,8007,260(540)8,344
Purchased services337228(109)203
Other services and charges69,36644,019(25,347)12,838
Total storm sewers131,07395,613(35,460)64,403
Tree preservation and weed control:
Personal services13,16613,168212,389
Materials and supplies7,7006,428(1,272)700
Purchased services13,286954(12,332)13,788
Other services and charges12,56519,0266,4618,793
Total tree preservation and weed control46,71739,576(7,141)35,670
Total sanitation177,790135,189(42,601)100,073
Parks and recreation:
Personal services360,710 340,424 (20,286)313,742
Materials and supplies47,50049,8612,36151,136
Purchased services29,11227,897(1,215)23,296
Other services and charges105,853109,2353,38298,367
Miscellaneous22,00816,375(5,633)20,879
Total 565,183543,792(21,391)507,420
Capital outlay40,00040,85585531,103
Total parks and recreation605,183584,647(20,536)538,523
Recycling:
Personal services59,601 59,111 (490)50,177
Materials and supplies12,0507,019(5,031)5,122
Purchased services7,5503,226(4,324)2,678
Other services and charges31,09439,0347,94033,094
Total recycling110,295108,390(1,905)91,071
Unallocated:
CDBG - 26,17726,17721,189
Insurance31,00019,955(11,045)21,000
Miscellaneous110,55298,936(11,616)91,132
Total unallocated141,552145,0683,516133,321
Total expenditures$7,211,632$6,096,283($1,115,349)$6,263,534
59
- This page intentionally left blank -
60
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. They are usually required by statute, charter provision, or local
ordinance to finance particular functions or activities of government.
61
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Drainage
andEDATrail and
AssetsForestryLRRWMOMappingGeneralTransportation
Cash and investments$27,630$21,870($14,048)$80,770$145,757
Taxes receivable:
Delinquent - 660 - - -
Accounts receivable2,710 - 345 -
Interest receivable13778 - - 794
Due from other governmental units - 411 - - -
Due from other funds - - - - -
Total assets$30,477$23,019($14,048)$81,115$146,551
Liabilities and Fund Balance
Liabilities:
Accounts payable$100$ - $ - $1,437$348
Accrued items627677 - 2,864 -
Deferred revenue - 660 - - -
Due to other funds - - - - 11,297
Total liabilities7271,33704,30111,645
Fund balance (deficit):
Unreserved:
Undesignated29,75021,682(14,048)76,814134,906
Total fund balance (deficit)29,75021,682(14,048)76,814134,906
Total liabilities and fund balance$30,477$23,019($14,048)$81,115$146,551
62
Statement 10
Right-of-WayCapitalOak Wilt
SepticManagement/EquipmentDeveloperSuppressionTotals
DisposalUtilityReserveSealcoatingProgram20012000
$8,415$35,094$1,347,290$491,606$1,114$2,145,498$1,839,034
- - - - - 660432
- 63,447 - - - 66,5024,807
451876,7682,397 - 10,40610,808
- - - - - 4113,202
- - - - - - 89,595
$8,460$98,728$1,354,058$494,003$1,114$2,223,477$1,947,878
$ - $ - $788$ - $6,495$9,168$18,128
- 9471,635 - - 6,7504,855
- - - 404,092 - 404,752493,050
- - - - - 11,29739,977
09472,423404,0926,495431,967556,010
8,46097,7811,351,63589,911(5,381)1,791,5101,391,868
8,46097,7811,351,63589,911(5,381)1,791,5101,391,868
$8,460$98,728$1,354,058$494,003$1,114$2,223,477$1,947,878
63
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Drainage
andEDATrail and
ForestryLRRWMOMappingGeneralTransportation
Revenues:
General property taxes$ - $25,571$ - $ - $ -
Intergovernmental:
State - - - - -
Other grants - - - - -
Charges for services9,834 - 8,314 - 253,900
Investment income1,277811326184,119
Miscellaneous:
Other - - 10131,902 -
Total revenues11,11126,3828,356132,520258,019
Expenditures:
Current:
Public works13,02218,87128,341 - 33,510
Economic development - - - 123,333 -
Capital outlay - - - - -
Total expenditures13,02218,87128,341123,33333,510
Revenues over (under) expenditures(1,911)7,511(19,985)9,187224,509
Other financing sources (uses):
Operating transfers in - - - - -
Operating transfers out - - - - -
Proceeds from sale of property - - - - -
Total financing sources (uses)00000
Net increase (decrease) in fund balance(1,911)7,511(19,985)9,187224,509
Fund balance (deficit) - January 131,66114,1715,93767,627(89,603)
Fund balance (deficit) - December 31$29,750$21,682($14,048)$76,814$134,906
64
Statement 11
Right-of-WayCapitalOak Wilt
SepticManagement/EquipmentDeveloperSuppressionTotals
DisposalUtilityReserveSealcoatingProgram20012000
$ - $ - $ - $ - $ - $25,571$19,454
- - - - - - 2,500
- - - - 1,7501,75023,245
- 111,784 - - - 383,83297,953
4212,41958,94025,401 - 94,038143,788
- - 5,025 - - 136,93786,079
421114,20363,96525,4011,750642,128373,019
- 32,50829,575 - 7,541163,36866,184
- - - - - 123,333137,105
- - 33,764 - - 33,764202,375
032,50863,33907,541320,465405,664
-
42181,69562625,401(5,791)321,663(32,645)
- - 95,000 - - 95,000370,100
- - (17,021) - - (17,021)(173,211)
- - - - - - 103,456
0077,9790077,979300,345
42181,69578,60525,401(5,791)399,642267,700
8,03916,0861,273,03064,5104101,391,8681,124,168
$8,460$97,781$1,351,635$89,911($5,381)$1,791,510$1,391,868
65
CITY OF ANDOVER, MINNESOTA
Statement 12
SPECIAL REVENUE FUND - FORESTRY FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Charges for services$14,550$9,834($4,716)$8,952
Investment income2251,2771,0521,945
Miscellaneous:
Refunds and reimbursements100 - (100) -
Total revenues14,87511,111(3,764)10,897
Expenditures:
Public works:
Personal services9,93212,8782,9465,105
Materials and supplies1,20088(1,112) -
Purchased services75056(694)183
Other services and charges5,600 - (5,600)60
Total expenditures17,48213,022(4,460)5,348
Revenues over (under) expenditures($2,607)(1,911)$6965,549
Fund balance - January 131,66126,112
Fund balance - December 31$29,750$31,661
66
CITY OF ANDOVER, MINNESOTA
Statement 13
SPECIAL REVENUE FUND - LRRWMO FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
General property taxes$25,759$25,571($188)$19,454
Intergovernmental:
State aids - - - 2,500
Investment income200811611583
Total revenues25,95926,38242322,537
Expenditures:
Public works:
Personal services21,78917,498(4,291)16,218
Materials and supplies520 - (520) -
Purchased services450 - (450) -
Other services and charges3,2001,373(1,827)1,441
Total expenditures25,95918,871(7,088)17,659
Revenues over expenditures$07,511$7,5114,878
Fund balance - January 114,1719,293
Fund balance - December 31$21,682$14,171
67
CITY OF ANDOVER, MINNESOTA
Statement 14
SPECIAL REVENUE FUND - DRAINAGE AND MAPPING FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Charges for services:
Drainage and mapping$48,000$8,314($39,686)$10,817
Investment income1,20032(1,168)(6)
Miscellaneous:
Other1,30010(1,290)1,079
Total revenues50,5008,356(42,144)11,890
Expenditures:
Public works:
Materials and supplies4,3002,588(1,712)3,529
Purchased services45,65025,632(20,018)25,955
Other services and charges5012171257
Capital outlay500 - (500) -
Total expenditures50,50028,341(22,159)29,741
Revenues over (under) expenditures$0(19,985)($19,985)(17,851)
Fund balance - January 15,93723,788
Fund balance (deficit) - December 31($14,048)$5,937
68
CITY OF ANDOVER, MINNESOTA
Statement 15
SPECIAL REVENUE FUND - EDA GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Investment income$2,200$618($1,582)$13,211
Miscellaneous:
Other131,902131,902 - 85,000
Total revenues134,102132,520(1,582)98,211
Expenditures:
Economic development:
Personal services114,302108,547(5,755)102,792
Materials and supplies2,00059(1,941)12
Purchased services13,50010,793(2,707)33,890
Other services and charges4,3003,934(366)411
Total expenditures134,102123,333(10,769)137,105
Revenues over (under) expenditures - 9,1879,187(38,894)
Other financing sources (uses):
Proceeds from sale of property - - - 103,456
Net increase in fund balance$09,187$9,18764,562
Fund balance - January 167,6273,065
Fund balance - December 31$76,814$67,627
69
CITY OF ANDOVER, MINNESOTA
Statement 16
SPECIAL REVENUE FUND - TRAIL AND TRANSPORTATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Charges for services$87,500$253,900$166,400$49,050
Investment income3,6504,11946913,460
Total revenues91,150258,019166,86962,510
Expenditures:
Public works:
Materials and supplies - 129129 -
Purchased services2,1502,574424 -
Other services and charges89,00030,807(58,193) -
Capital outlay - - - 92,797
Total expenditures91,15033,510(57,640)92,797
Revenues over (under) expenditures - 224,509224,509(30,287)
Other financing sources (uses):
Operating transfers out - - - (91,211)
Net increase (decrease) in fund balance$0224,509$224,509(121,498)
Fund balance (deficit) - January 1(89,603)31,895
Fund balance (deficit) - December 31$134,906($89,603)
70
CITY OF ANDOVER, MINNESOTA
Statement 17
SPECIAL REVENUE FUND - SEPTIC DISPOSAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Charges for services$1,000$ - ($1,000)$ -
Investment income120421301537
Total revenues1,120421(699)537
Expenditures:
Public works:
Other services and charges1,120 - (1,120) -
Revenues over expenditures$0421$421537
Fund balance - January 18,0397,502
Fund balance - December 31$8,460$8,039
71
CITY OF ANDOVER, MINNESOTA
Statement 18
SPECIAL REVENUE FUND - RIGHT-OF-WAY MANAGEMENT/UTILITY FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Charges for services:$53,000$111,784$58,784$29,134
Investment income1,2002,4191,219388
Total revenues54,200114,20360,00329,522
Expenditures:
Public works:
Personal services43,12724,284(18,843) -
Materials and supplies1,000 - (1,000) -
Purchased services - - - 23
Other services and charges5,0008,2243,22413,413
Total expenditures49,12732,508(16,619)13,436
Revenues over expenditures$5,07381,695$76,62216,086
Fund balance - January 116,086 -
Fund balance - December 31$97,781$16,086
72
CITY OF ANDOVER, MINNESOTA
Statement 19
SPECIAL REVENUE FUND - CAPITAL EQUIPMENT RESERVE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Intergovernmental revenue:
Other grants$ - $ - $ - $10,000
Investment income57,50058,9401,44090,364
Miscellaneous:
Other - 5,0255,025 -
Total revenues57,50063,9656,465100,364
Expenditures:
Public works:
Purchased services - 29,57529,575 -
Capital outlay82,00033,764(48,236)109,578
Total expenditures82,00063,339(18,661)109,578
Revenues over (under) expenditures(24,500)62625,126(9,214)
Other financing sources (uses):
Operating transfers in220,00095,000(125,000)370,100
Operating transfers out(154,067)(17,021)137,046(82,000)
Total other financing sources (uses)65,93377,97912,046288,100
Net increase in fund balance$41,43378,605$37,172278,886
Fund balance - January 11,273,030994,144
Fund balance - December 31$1,351,635$1,273,030
73
CITY OF ANDOVER, MINNESOTA
Statement 20
SPECIAL REVENUE FUND - DEVELOPER SEALCOATING FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Investment income$ - $25,401$25,401$23,306
Expenditures - - - -
Revenues over expenditures$025,401$25,40123,306
Fund balance - January 164,51041,204
Fund balance - December 31$89,911$64,510
74
CITY OF ANDOVER, MINNESOTA
Statement 21
SPECIAL REVENUE FUND - OAK WILT SUPPRESSION FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
With Comparative Actual Amounts For The Year Ended December 31, 2000
2001
Over
(Under)2000
BudgetActualBudgetActual
Revenues:
Intergovernmental:
Other grants$6,425$1,750($4,675)$13,245
Investment income175 - (175) -
Miscellaneous:
Refunds and reimbursements2,000 - (2,000) -
Total revenues8,6001,750(6,850)13,245
Expenditures:
Public works:
Materials and supplies100 - (100) -
Other services and charges8,5007,541(959) -
Total expenditures8,6007,541(1,059)0
Revenues over (under) expenditures$0(5,791)($5,791)13,245
Fund balance (deficit) - January 1410(12,835)
Fund balance (deficit) - December 31($5,381)$410
75
- This page intentionally left blank -
76
DEBT SERVICE FUNDS
Debt Service Funds are created to account for the payment of interest and
principal on long-term general obligation debt other than debt issued for and
serviced primarily by a governmental enterprise.
The City's Debt Service Funds account for the following types of bonded
indebtedness:
General Debt Bonds
Revenue Bonds
Tax Increment Bonds
Improvement Bonds
Certificates of Indebtedness/Capital Notes
Permanent Improvement Bonds
77
CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals For December 31, 2000
301347378379321
TIFTIF G.O.
CertificatesTIFBondsBondsImprovement
ofCommercialof 1993Bof 1994BBonds
IndebtednessRevitalizationProject 1-1Project 1-2of 1977A
Assets
Cash and investments$ - $425,479$ - $95,946$ -
Taxes receivable:
Delinquent - 52,060 - - -
Special assessments receivable:
Deferred - 451,493 - - -
Delinquent - 14,655 - - -
Interest receivable - 1,209 - - -
Due from other governmental units - 21,863 - 394 -
Due from other funds - - - - -
Total assets$0$966,759$0$96,340$0
Liabilities and Fund Balance
Liabilities:
Developer advances - - - - -
Deferred revenue - 518,208 - - -
Due to other governmental units - - - - -
Due to other funds - - - - -
Total liabilities0518,208000
Fund balance (deficit):
Reserved for debt service - 448,551 - 96,340 -
Unreserved:
Undesignated - - - - -
Total fund balance (deficit)0448,551096,3400
Total liabilities and fund balance$0$966,759$0$96,340$0
78
Statement 22
Page 1 of 2
329333337342344345346319
G.O.EDA Public
G.O.ImprovementG.O.G.O.G.O.G.O.G.O.Project
ImprovementRefundingImprovementImprovementImprovementImprovementImprovementRevenue
BondsBonds ofBonds ofBonds ofBonds ofBonds ofBonds ofBonds
of 1985B1986C/1997C1989/19961993A1994C1995A1996Cof 1997
$ - $ - $ - $261,743$147,694$359,986$ - $17,543
- - - - - - - -
- - - 484,026305,89831,308 - -
- - - 5,5042,717 - - -
- - - 1,05455338 - -
- - - 1,1521,872 - - -
- 59,928 - - - - - -
$0$59,928$0$753,479$458,236$391,632$0$17,543
- - - - - - - -
- - - 489,530308,61531,308 - -
- 57,061 - - - - - -
- - - 59,928 - - - -
057,0610549,458308,61531,30800
- 2,867 - 204,021149,621360,324 - 17,543
- - - - - - - -
02,8670204,021149,621360,324017,543
$0$59,928$0$753,479$458,236$391,632$0$17,543
79
CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals For December 31, 2000
349348309315352
G.O.G.O.G.O.G.O.
ImprovementImprovementRefundingEquipmentTIF
Bonds ofBonds ofBonds ofCertificateBonds
1997A1997B1998of 1999of 1999
Assets
Cash and investments$398,898$2,055,172($3,307)$19,102$141,924
Taxes receivable:
Delinquent - - - 9,620 -
Special assessments receivable:
Deferred268,840478,412 - - -
Delinquent - - - - -
Interest receivable2,92612,945 - - 592
Due from other governmental units - - 4,1294,324775
Due from other funds - - - - -
Total assets$670,664$2,546,529$822$33,046$143,291
Liabilities and Fund Balance
Liabilities:
Developer advances - - - - -
Deferred revenue268,840478,412 - 9,620 -
Due to other governmental units47,893157,731 - - -
Due to other funds - - - - -
Total liabilities316,733636,14309,6200
Fund balance (deficit):
Reserved for debt service353,9311,910,38682223,426143,291
Unreserved:
Undesignated - - - - -
Total fund balance (deficit)353,9311,910,38682223,426143,291
Total liabilities and fund balance$670,664$2,546,529$822$33,046$143,291
80
Statement 22
Page 2 of 2
355,356353357317358362
G.O.G.O.G.O.
ImprovementTIFPIR FundCapital PIR FundState
Bonds ofBondsBonds ofNotesBonds ofAid BondsTotals
1999Cof 2000A2000B2001C2001A2001B20012000
$1,860,975$105,832$11,691$58,083$35,200$253,321$6,245,282$7,916,060
- - - - - - 61,68029,239
478,413 - - - - - 2,498,3903,460,908
- - - - - - 22,87611,514
11,14785 - 761867830,69149,119
- 1,366 - - - - 35,87515,593
- - - - - - 59,9282,306,557
$2,350,535$107,283$11,691$58,159$35,386$253,399$8,954,722$13,788,990
- - - - - - - 713,842
478,413 - - - - - 2,582,9463,501,661
- - - - - - 262,685 -
- - - - - - 59,9282,166,845
478,413000002,905,5596,382,348
1,872,122107,28311,69158,15935,386253,3996,049,1637,453,536
- - - - - - - (46,894)
1,872,122107,28311,69158,15935,386253,3996,049,1637,406,642
$2,350,535$107,283$11,691$58,159$35,386$253,399$8,954,722$13,788,990
81
CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
301347378379321
TIFTIF G.O.
CertificatesTIFBondsBondsImprovement
ofCommercialof 1993Bof 1994BBonds
IndebtednessRevitalizationProject 1-1Project 1-2of 1977A
Revenues:
General property taxes$ - $ - $ - $ - $ -
Tax increments - 399,247 - 61,423 -
Special assessments - 64,509 - - 15,374
Intergovernmental:
State aids - - - - -
Investment income(953)8,175(4,402) - (9,775)
Total revenues(953)471,931(4,402)61,4235,599
Expenditures:
Debt service:
Principal retirement - 285,000 - 90,000340,000
Interest and fiscal charges - 365,46334123,3635,668
Other - 3,933 - - 10
Total expenditures0654,396341113,363345,678
Revenues over (under) expenditures(953)(182,465)(4,743)(51,940)(340,079)
Other financing sources (uses):
Operating transfers in - - - - -
Operating transfers out(46,722) - (35,019) - (182,147)
Bond proceeds - - - - -
Total other financing sources (uses)(46,722)0(35,019)0(182,147)
Net increase (decrease) in fund balance(47,675)(182,465)(39,762)(51,940)(522,226)
Fund balance - January 147,675 631,016 39,762 148,280 522,226
Fund balance - December 31$0$448,551$0$96,340$0
82
Statement 23
Page 1 of 2
329333337342344345346319
G.O.EDA Public
G.O.ImprovementG.O.G.O.G.O.G.O.G.O.Project
ImprovementRefundingImprovementImprovementImprovementImprovementImprovementRevenue
BondsBonds ofBonds ofBonds ofBonds ofBonds ofBonds ofBonds
of 1985B1986C/1997C1989/19961993A1994C1995A1996Cof 1997
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- 32,96710,08774,81653,64011,89019,654 -
- - - - - - - -
1,592(24,111)11,36323,337(2,082)(7,240)(17,829) -
1,5928,85621,45098,15351,5584,6501,8250
- - 300,000365,000115,000255,000380,00055,000
- - 13,50051,59635,59481,43218,035126,005
- 57,061 - 851 - 1,570 - -
057,061313,500417,447150,594338,002398,035181,005
1,592(48,205)(292,050)(319,294)(99,036)(333,352)(396,210)(181,005)
- 59,92828,122333,658140,000333,295 - 181,355
(1,592)(40,747) - (59,928) - - (137,295) -
- - - - - - - -
(1,592)19,18128,122273,730140,000333,295(137,295)181,355
0(29,024)(263,928)(45,564)40,964(57)(533,505)350
- 31,891 263,928 249,585 108,657 360,381 533,505 17,193
$0$2,867$0$204,021$149,621$360,324$0$17,543
83
CITY OF ANDOVER, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
349348309315352
G.O.G.O.G.O.G.O.
ImprovementImprovementRefundingEquipmentTIF
Bonds ofBonds ofBonds ofCertificateBonds
1997A1997B1998of 1999of 1999
Revenues:
General property taxes$ - $ - $260,829$273,703$ -
Tax increments - - - - 120,926
Special assessments - 257,042 - - -
Intergovernmental:
State aids - - - - -
Investment income11,831105,749(286) - 4,915
Total revenues11,831362,791260,543273,703125,841
Expenditures:
Debt service:
Principal retirement605,000785,000240,000225,00050,000
Interest and fiscal charges57,475174,7906,73847,10565,975
Other47,893157,731 - - -
Total expenditures710,3681,117,521246,738272,105115,975
Revenues over (under) expenditures(698,537)(754,730)13,8051,5989,866
Other financing sources (uses):
Operating transfers in274,000150,000 - 68,72235,019
Operating transfers out - - (50,000) - -
Bond proceeds - - - - -
Total other financing sources (uses)274,000150,000(50,000)68,72235,019
Net increase (decrease) in fund balance(424,537)(604,730)(36,195)70,32044,885
Fund balance - January 1778,468 2,515,116 37,017 (46,894)98,406
Fund balance - December 31$353,931$1,910,386$822$23,426$143,291
84
Statement 23
Page 2 of 2
355, 356353357317358362
G.O.G.O.G.O.
ImprovementTIFPIR FundCapital PIR FundState
Bonds ofBondsBonds ofNotesBonds ofAid BondsTotals
1999Cof 2000A2000B2001C2001A2001B20012000
$ - $ - $ - $ - $ - $ - $534,532$478,457
- 213,060 - - - - 794,656787,374
1,440,681 - - - - - 1,980,6602,434,898
- - - - - 238,447238,447106,136
94,977(625)(109)3,91915,7539,745223,944614,819
1,535,658212,435(109)3,91915,753248,1923,772,2394,421,684
705,00050,000 - - - - 4,845,0004,580,000
119,498157,530134,1732172172171,484,9321,335,228
- - - - - - 269,04957,087
824,498207,530134,1732172172176,598,9815,972,315
711,1604,905(134,282)3,70215,536247,975(2,826,742)(1,550,631)
214,892 - 131,88350,000 - - 2,000,8741,793,151
(7,892) - - - - - (561,342)(1,480,439)
- - - 4,45719,8505,42429,73132,576
207,0000131,88354,45719,8505,4241,469,263345,288
918,1604,905(2,399)58,15935,386253,399(1,357,479)(1,205,343)
953,962 102,378 14,090 - - - 7,406,6428,611,985
$1,872,122$107,283$11,691$58,159$35,386$253,399$6,049,163$7,406,642
85
- This page intentionally left blank -
86
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are created to account for all resources used for the
acquisition of capital facilities by a governmental unit except those financed by
Enterprise Funds.
87
- This page intentionally left blank -
88
CITY OF ANDOVER, MINNESOTA
Statement 24
CAPITAL PROJECTS FUNDS
Page 1 of 2
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals For December 31, 2000
398397399448,449,499
WaterStormSewer
TrunkSewerTrunkUnfinanced
ProjectProjectProjectProjects
Assets
Cash and investments$584,153($109,020)$211,825($778,268)
Special assessments receivable:
Deferred916,366 - 111,411369,098
Delinquent786 - 4 -
Accounts/loan receivable - - - -
Interest receivable310 - 2,413 -
Due from other governmental units2,046 - 3,6641,280
Due from other funds25,747 - - -
Total assets$1,529,408($109,020)$329,317($407,890)
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $43,890
Developer advances - - - 15,371
Deferred revenue917,152 - 111,415369,099
Due to other funds - - 5,611 -
Total liabilities917,1520117,026428,360
Fund balance (deficit):
Unreserved:
Designated for projects612,256 - 212,291 -
Designated for equipment - - - -
Undesignated - (109,020) - (836,250)
Total fund balance (deficit)612,256(109,020)212,291(836,250)
Total liabilities and fund balance$1,529,408($109,020)$329,317($407,890)
89
CITY OF ANDOVER, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals For December 31, 2000
401, 402447,452,457405420501
Road andTaxPublicPermanent
BridgeIncrementParkWorksImprovement
FundProjectsDedicationProjectRevolving
Assets
Cash and investments$1,021,267$681,885$591,679$33,907$5,544,460
Special assessments receivable:
Deferred88,818 - - - 825,485
Delinquent295 - - - 408
Accounts/loan receivable75065,561 - 6,805 -
Interest receivable5,7284,0422,968 - 31,433
Due from other governmental units56,70233,05012,081 - -
Due from other funds90,7411,190,0001,518 - 15,389
Total assets$1,264,301$1,974,538$608,246$40,712$6,417,175
Liabilities and Fund Balance
Liabilities:
Accounts payable$516$1,538$534$8,805$181,852
Developer advances - - - - 609,042
Deferred revenue89,11359,098 - - 825,893
Due to other funds - 1,191,775 - - 25,747
Total liabilities89,6291,252,4115348,8051,642,534
Fund balance (deficit):
Unreserved:
Designated for projects1,289,664722,127 - 31,9074,774,641
Designated for equipment - - 607,712 - -
Undesignated(114,992) - - - -
Total fund balance (deficit)1,174,672722,127607,71231,9074,774,641
Total liabilities and fund balance$1,264,301$1,974,538$608,246$40,712$6,417,175
90
Statement 24
Page 2 of 2
410412415455416417462
Old CityKelsey Round1999 G.O.ImprovementCapital State
HallLake ParkEquipmentBonds ofBall FieldNotesAid BondsTotals
RemodelProjectCertificate1999C ProjectDevelopment2001C2001B20012000
$8,310($9,687)$ - $171,401$109,314$604,805$1,766,632$10,432,663$4,543,703
- - - - - - - 2,311,1782,059,075
- - - - - - - 1,4931,878
- - - - - - - 73,11687,513
- - - 6288314,48511,10363,94133,394
- - - - 850 - - 109,673104,304
- - - - - - - 1,323,3952,897,769
$8,310($9,687)$0$172,029$110,995$609,290$1,777,735$14,315,459$9,727,636
$ - $ - $ - $220$67,087$5,155$454,726$764,323$161,593
- - - - - - - 624,413512,107
- - - - - - - 2,371,7702,140,076
- - - - - - - 1,223,1333,963,155
00022067,0875,155454,7264,983,6396,776,931
8,310 - - 171,80943,908604,1351,323,0099,794,0574,057,295
- - - - - - - 607,712428,962
- (9,687) - - - - - (1,069,949)(1,535,552)
8,310(9,687)0171,80943,908604,1351,323,0099,331,8202,950,705
$8,310($9,687)$0$172,029$110,995$609,290$1,777,735$14,315,459$9,727,636
91
- This page intentionally left blank -
92
CITY OF ANDOVER, MINNESOTA
Statement 25
CAPITAL PROJECTS FUNDS
Page 1 of 2
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
398397399448,449,499
WaterStormSewer
TrunkSewerTrunkUnfinanced
ProjectProjectProjectProjects
Revenues:
General property taxes$ - $ - $ - $ -
Tax increments - - - -
Special assessments90,212 - 44,176373,043
Intergovernmental:
State aids - - - -
Other grants - - - -
Investment income5,982 - 21,759 -
Miscellaneous:
Park dedication fees - - - -
Refunds and reimbursements - - - 5,750
Other457,346 - 223,910 -
Total revenues553,5400289,845378,793
Expenditures:
Capital projects:
Capital outlay32,256 - 134,92213,526
Interest27 - 66238,112
Total expenditures32,2830135,58451,638
Revenues over (under) expenditures521,2570154,261327,155
Other financing sources (uses):
Operating transfers in228,000 - - -
Operating transfers out(12,108)(4,658)(282,024) -
Bond proceeds - - - -
Proceeds from sale of property - - - -
Total other financing sources (uses)215,892(4,658)(282,024)0
Net increase (decrease) in fund balance737,149(4,658)(127,763)327,155
Fund balance - January 1(124,893)(104,362)340,054 (1,163,405)
Fund balance - December 31$612,256($109,020)$212,291($836,250)
93
CITY OF ANDOVER, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
401,402447,452,457405420501
Road andTaxPublicPermanent
BridgeIncrementParkWorksImprovement
FundProjectsDedicationProjectRevolving
Revenues:
General property taxes$ - $165$ - $ - $ -
Tax increments - 348,472 - - -
Special assessments8,4111,138 - - 1,450,133
Intergovernmental:
State aids285,71820,840 - - -
Other grants - - 12,081 - -
Investment income77,75040429,563 - 313,555
Miscellaneous:
Park dedication fees - - 356,650 - -
Refunds and reimbursements - 81,725 - 2,284
Other - 20,0259,960 - -
Total revenues371,879391,052409,97901,765,972
Expenditures:
Capital projects:
Capital outlay29,203295,693231,229 - 3,489,651
Interest - - - - 29,850
Total expenditures29,203295,693231,22903,519,501
Revenues over (under) expenditures342,67695,359178,7500(1,753,529)
Other financing sources (uses):
Operating transfers in - - - - -
Operating transfers out - - - - (131,883)
Bond proceeds - - - - 4,955,150
Proceeds from sale of property - 236,573 - - -
Total other financing sources (uses)0236,573004,823,267
Net increase (decrease) in fund balance342,676331,932178,75003,069,738
Fund balance - January 1831,996 390,195 428,962 31,907 1,704,903
Fund balance - December 31$1,174,672$722,127$607,712$31,907$4,774,641
94
Statement 25
Page 2 of 2
410412415455416417462
Old CityKelsey Round1999 G.O.ImprovementCapital State
HallLake ParkEquipmentBonds ofBall FieldNotesAid BondsTotals
RemodelProjectCertificate1999C ProjectDevelopment2001C2001B20012000
$ - $ - $ - $ - $ - $ - $ - $165$7,369
- - - - - - - 348,472403,277
- - - - - - - 1,967,1131,488,702
- - - - - - - 306,5581,092,491
- - - - - - - 12,081 -
- - 193(623)23,36056,520137,952666,415479,233
- - - - - - - 356,650170,447
- - - - - - - 9,7674,549
- - - - - - - 711,2411,098,837
00193(623)23,36056,520137,9524,378,4624,744,905
- - - 278,834460,054648,7801,531,9437,146,0919,042,382
- 510352 - - 9,14832,576111,23782,470
0510352278,834460,054657,9281,564,5197,257,3289,124,852
0(510)(159)(279,457)(436,694)(601,408)(1,426,567)(2,878,866)(4,379,947)
- - 17,021298,791 - - - 543,812606,251
- - - - - - - (430,673)(731,752)
- - - - - 1,205,5432,749,5768,910,2695,762,424
- - - - - - - 236,573348,909
0017,021298,79101,205,5432,749,5769,259,9815,985,832
0(510)16,86219,334(436,694)604,1351,323,0096,381,1151,605,885
8,310 (9,177)(16,862)152,475 480,602 - - 2,950,7051,344,820
$8,310($9,687)$0$171,809$43,908$604,135$1,323,009$9,331,820$2,950,705
95
- This page intentionally left blank -
96
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units which render services on a user charge basis to
the general public.
The reports of Enterprise Funds are similar to comparable private enterprise and
are self-contained. Creditors, legislators, or the general public can evaluate the
performance of the municipal enterprise on the same basis as they can the
performance of investor-owned enterprises. The City of Andover maintains
separate Enterprise Funds for its Water and Sewer operations.
97
CITY OF ANDOVER, MINNESOTA
Statement 26
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Assets
Totals
WaterSewer20012000
Current assets:
Cash and cash equivalents$1,322,788$1,242,570$2,565,358$2,609,875
Special assessments receivable:
Deferred - 14,90514,9058,462
Delinquent - 1,5091,5092,222
Accounts receivable233,188286,280519,468517,312
Interest receivable10,2558,93819,19311,857
Due from other governmental units - 1,6591,6591,194
Due from other funds11,591 - 11,591448,591
Inventory55,3212055,34128,337
Prepaid items - 45,26445,26441,379
Total current assets1,633,1431,601,1453,234,2883,669,229
Fixed assets:
Furniture and equipment813,902168,111982,013982,013
Machinery992,843163,3191,156,1621,149,491
Collection and distribution system14,096,78019,417,77533,514,55531,630,952
Total15,903,52519,749,20535,652,73033,762,456
Less: Allowance for depreciation(3,519,567)(4,492,853)(8,012,420)(7,266,003)
Net fixed assets12,383,95815,256,35227,640,31026,496,453
Total assets$14,017,101$16,857,497$30,874,598$30,165,682
Liabilities and Fund Equity
Current liabilities:
Accounts payable$25,033$3,675$28,708$18,814
Accrued items15,6854,17819,86314,904
Deferred revenue - 14,50414,5048,775
Due to other funds - 9,8159,81523,815
Total current liabilities40,71832,17272,89066,308
Noncurrent liabilities:
Compensated absences payable27,23220,58247,81439,525
Total liabilities67,95052,754120,704105,833
Fund equity:
Contributed capital12,422,03115,119,32727,541,35826,285,503
Retained earnings:
Unreserved1,527,1201,685,4163,212,5363,774,346
Total fund equity13,949,15116,804,74330,753,89430,059,849
Total liabilities and fund equity$14,017,101$16,857,497$30,874,598$30,165,682
98
CITY OF ANDOVER, MINNESOTA
Statement 27
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Totals
WaterSewer20012000
Operating revenues:
User charges$1,041,001$1,153,225$2,194,226$2,123,284
Meters38,356 - 38,35645,581
Permit fees13,900 - 13,90014,950
Penalties16,80617,37634,18234,360
Other326 - 326442
Total operating revenue1,110,3891,170,6012,280,9902,218,617
Operating expenses:
Personal services329,182117,460446,642520,038
Supplies53,20312,66865,87176,321
Other services and charges303,47772,267375,744136,155
Disposal charges - 506,338506,338492,720
Depreciation351,573394,844746,417715,298
Total operating expenses1,037,4351,103,5772,141,0121,940,532
Operating income 72,95467,024139,978278,085
Other income:
Investment income114,33695,422209,758143,571
Net income before operating transfers187,290162,446349,736421,656
Other financing sources (uses):
Operating transfers out(913,673)(625,622)(1,539,295)(95,961)
Net income (loss)(726,383)(463,176)(1,189,559)325,695
Other increases:
Credit arising from transfer of depreciation
to contributions from property owners262,782364,967627,749593,052
Net increase (decrease) in retained earnings(463,601)(98,209)(561,810)918,747
Retained earnings - January 11,990,7211,783,6253,774,3462,855,599
Retained earnings - December 31$1,527,120$1,685,416$3,212,536$3,774,346
99
CITY OF ANDOVER, MINNESOTA
Statement 28
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Totals
WaterSewer20012000
Cash flows from operating activities:
Operating income $72,954$67,024$139,978$278,085
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation351,573394,844746,417715,298
Change in assets and liabilities:
Decrease (increase) in special assessments - (5,730)(5,730)221
Decrease (increase) in accounts receivable10,742(12,898)(2,156)(64,347)
Decrease (increase) in due from other governmental units - (465)(465)497
Decrease (increase) in inventory(27,149)145(27,004)(10,755)
Decrease (increase) in prepaid items - (3,885)(3,885)(1,419)
Increase (decrease) in accounts payable9,5153799,8942,946
Increase (decrease) in accrued items6,0357,21413,2494,969
Increase (decrease) in deferred revenue - 5,7295,729(221)
Net cash flows from operating activities423,670452,357876,027925,274
Cash flows from noncapital financing activities:
Advances from other funds(7,000)(7,000)(14,000)23,815
Advances to other funds - - - (98,389)
Payment of advances to other funds 105,000332,000437,000118,410
Operating transfers to other funds(913,673)(625,622)(1,539,295)(95,961)
Net cash flows from noncapital financing activities(815,673)(300,622)(1,116,295)(52,125)
Cash flows from capital and related financing activities:
Acquisition of fixed assets(6,671) - (6,671)(86,205)
Cash flows from investing activities:
Investment income110,74191,681202,422141,828
Net increase (decrease) in cash and cash equivalents(287,933)243,416(44,517)928,772
Cash and cash equivalents - January 11,610,721999,1542,609,8751,681,103
Cash and cash equivalents - December 31$1,322,788$1,242,570$2,565,358$2,609,875
oncash investment, capital and financing activities:
N
System assets were contributed to the Enterprise Funds in 2001 as follows:
Water$766,358
Sewer$1,117,245
100
CITY OF ANDOVER, MINNESOTA
Statement 29
ENTERPRISE FUNDS - WATER FUND
COMPARATIVE BALANCE SHEET
December 31, 2001
With Comparative Amounts for December 31, 2000
Assets
20012000
Current assets:
Cash and cash equivalents$1,322,788$1,610,721
Accounts receivable233,188243,930
Interest receivable10,2556,660
Due from other funds11,591116,591
Inventory55,32128,172
Total current assets1,633,1432,006,074
Fixed assets:
Furniture and equipment813,902813,902
Machinery992,843986,172
Distribution system14,096,78013,330,422
Total15,903,52515,130,496
Less: Allowance for depreciation(3,519,567)(3,167,994)
Net fixed assets12,383,95811,962,502
Total assets$14,017,101$13,968,576
Liabilities and Fund Equity
Current liabilities:
Accounts payable$25,033$15,518
Accrued items15,68512,083
Due to other funds - 7,000
Total current liabilities40,71834,601
Noncurrent liabilities:
Compensated absences payable27,23224,799
Total liabilities67,95059,400
Fund equity:
Contributed capital12,422,03111,918,455
Retained earnings:
Unreserved1,527,1201,990,721
Total fund equity13,949,15113,909,176
Total liabilities and fund equity$14,017,101$13,968,576
101
CITY OF ANDOVER, MINNESOTA
Statement 30
ENTERPRISE FUNDS - WATER FUND
STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 2001
With Comparative Amounts For The Year Ended December 31, 2000
20012000
AmountPercentAmountPercent
Operating revenues:
User charges$1,041,00193.8% $1,041,60293.1%
Meters38,3563.5% 45,5814.1%
Permit fees13,9001.3% 14,9501.3%
Penalties16,8061.5% 16,7491.5%
Other3260.0% 4420.0%
Total operating revenue1,110,389100.0% 1,119,324100.0%
Operating expenses:
Personal services329,18229.6% 390,07734.8%
Supplies53,2034.8% 65,8115.9%
Other services and charges303,47727.3% 88,2417.9%
Depreciation351,57331.7% 338,76930.3%
Total operating expenses1,037,43593.4% 882,89878.9%
Operating income 72,9546.6% 236,42621.1%
Other income:
Investment income114,33610.3% 81,8697.3%
Net income before operating transfers187,29016.9% 318,29528.4%
Other financing sources (uses):
Operating transfers out(913,673)(78,961)
Net income (loss)(726,383)239,334
Other increases:
Credit arising from transfer of depreciation
to contributions from property owners262,782249,939
Net increase (decrease) in retained earnings(463,601)489,273
Retained earnings - January 11,990,7211,501,448
Retained earnings - December 31$1,527,120$1,990,721
102
CITY OF ANDOVER, MINNESOTA
Statement 31
ENTERPRISE FUNDS - SEWER FUND
COMPARATIVE BALANCE SHEET
December 31, 2001
With Comparative Amounts for December 31, 2000
Assets
20012000
Current assets:
Cash and cash equivalents$1,242,570$999,154
Special assessments receivable:
Deferred14,9058,462
Delinquent1,5092,222
Accounts receivable286,280273,382
Interest receivable8,9385,197
Due from other governmental units1,6591,194
Due from other funds - 332,000
Inventory20165
Prepaid items45,26441,379
Total current assets1,601,1451,663,155
Fixed assets:
Furniture and equipment168,111168,111
Machinery163,319163,319
Distribution system19,417,77518,300,530
Total19,749,20518,631,960
Less: Allowance for depreciation(4,492,853)(4,098,009)
Net fixed assets15,256,35214,533,951
Total assets$16,857,497$16,197,106
Liabilities and Fund Equity
Current liabilities:
Accounts payable$3,675$3,296
Accrued items4,1782,821
Deferred revenue14,5048,775
Due to other funds9,81516,815
Total current liabilities32,17231,707
Noncurrent liabilities:
Compensated absences payable20,58214,726
Total liabilities52,75446,433
Fund equity:
Contributed capital15,119,32714,367,048
Retained earnings:
Unreserved1,685,4161,783,625
Total fund equity16,804,74316,150,673
Total liabilities and fund equity$16,857,497$16,197,106
103
CITY OF ANDOVER, MINNESOTA
Statement 32
ENTERPRISE FUNDS - SEWER FUND
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 2001
With Comparative Amounts For The Year Ended December 31, 2000
20012000
AmountPercentAmountPercent
Operating revenues:
User charges$1,153,22598.5% $1,081,68298.4%
Penalties17,3761.5% 17,6111.6%
Total operating revenues1,170,601100.0% 1,099,293100.0%
Operating expenses:
Personal services117,46010.0% 129,96111.8%
Supplies12,6681.1% 10,5101.0%
Other services and charges72,2676.2% 47,9144.4%
Disposal charges506,33843.3% 492,72044.8%
Depreciation394,84433.7% 376,52934.3%
Total operating expenses1,103,57794.3% 1,057,63496.3%
Operating income67,0245.7% 41,6593.7%
Other income:
Investment income95,4228.2% 61,7025.6%
Net income before operating transfers162,44613.9% 103,3619.4%
Other financing sources (uses):
Operating transfers(625,622)(17,000)
Net income (loss)(463,176)86,361
Other increases:
Credit arising from transfer of depreciation
to contributions from property owners364,967343,113
Net increase (decrease) in retained earnings(98,209)429,474
Retained earnings - January 11,783,6251,354,151
Retained earnings - December 31$1,685,416$1,783,625
104
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services
provided by one department or agency to other departments or agencies of the
government and to other government units, on a cost reimbursement basis. The
City of Andover had the following Internal Service Funds during the year:
Central Equipment Maintenance - accounts for the maintenance of the equipment
for the City.
Risk Management – provides funding for compensated absences, safety, training,
loss reduction, and insurance deductibles.
105
CITY OF ANDOVER, MINNESOTA
Statement 33
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Central
AssetsEquipmentRisk
Totals
MaintenanceManagement20012000
Current assets:
Cash and cash equivalents$68,399$89,946$158,345$146,797
Accounts receivable - - - 718
Interest receivable - 216216390
Due from other funds - - - 6,260
Inventory29,306 - 29,30623,134
Prepaid items - - - 32,468
Total assets$97,705$90,162$187,867$209,767
Liabilities and Fund Equity
Current liabilities:
Accounts payable$7,660$100$7,760$7,770
Accrued items7,7983338,1315,915
Total liabilities15,45843315,89113,685
Fund equity:
Retained earnings:
Unreserved82,24789,729171,976196,082
Total liabilities and fund equity$97,705$90,162$187,867$209,767
106
CITY OF ANDOVER, MINNESOTA
Statement 34
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Central
EquipmentRiskTotals
MaintenanceManagement20012000
Operating revenues:
User charges to other City funds$405,965$ - $405,965$361,641
Refunds and reimbursements3423,99324,02722,189
Total operating revenues405,99923,993429,992383,830
Operating expenses:
Personal services162,0509,693171,743136,247
Supplies170,051 - 170,051144,179
Other services and charges94,17819,294113,47272,904
Total operating expenses426,27928,987455,266353,330
Operating income (loss)(20,280)(4,994)(25,274)30,500
Other income:
Investment income - 1,1681,1684,332
Net income (loss)(20,280)(3,826)(24,106)34,832
Retained earnings - January 1102,52793,555196,082161,250
Retained earnings - December 31$82,247$89,729$171,976$196,082
107
CITY OF ANDOVER, MINNESOTA
Statement 35
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Central
EquipmentRisk
Totals
MaintenanceManagement20012000
Cash flows from operating activities:
Operating income (loss) ($20,280)($4,994)($25,274)$30,500
Adjustments to reconcile operating income to
net cash flows from operating activities:
Change in assets and liabilities:
Decrease (increase) in accounts receivable718 - 7185,673
Decrease (increase) in inventory(6,172) - (6,172)(10,036)
Decrease (increase) in prepaid items - 32,46832,468(32,468)
Increase (decrease) in accounts payable1,701(1,711)(10)(11,615)
Increase (decrease) in accrued items2,257(41)2,216(328)
Net cash flows from operating activities(21,776)25,7223,946(18,274)
Cash flows from noncapital financing activities:
Advances to other funds6,1291316,260(6,260)
Cash flows from investing activities:
Investment income - 1,3421,3424,662
Net increase (decrease) in cash and cash equivalents(15,647)27,19511,548(19,872)
Cash and cash equivalents - January 184,04662,751146,797166,669
Cash and cash equivalents - December 31$68,399$89,946$158,345$146,797
108
AGENCY FUNDS
Agency Funds are used to account for assets held by the government as an agent
for individuals, private organizations, other governments and/or other funds. The
City of Andover had two Agency Funds during the year.
109
CITY OF ANDOVER, MINNESOTA
Statement 36
AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
General
AssetsEscrowAgency
Totals
FundFund20012000
Cash and temporary investments$489,671$49,512$539,183$691,810
Interest receivable - 41,22941,2295,184
Total assets$489,671$90,741$580,412$696,994
Liabilities
Accounts payable$738$ - $738$4,293
Deposits payable488,933 - 488,933524,020
Due to other funds - 90,74190,741168,681
Total liabilities$489,671$90,741$580,412$696,994
110
CITY OF ANDOVER, MINNESOTA
Statement 37
AGENCY FUNDS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 2001
BalanceBalance
January 1,December 31,
2001AdditionsDeletions2001
Escrow Fund:
Assets:
Cash and temporary investments$528,313$489,671$528,313$489,671
Liabilities:
Accounts payable$4,293$738$4,293$738
Deposits payable524,020488,933524,020488,933
Total liabilities$528,313$489,671$528,313$489,671
General Agency Fund:
Assets:
Cash and temporary investments$163,497$49,512$163,497$49,512
Interest receivable5,18441,2295,18441,229
Total assets$168,681$90,741$168,681$90,741
Liabilities:
Due to other funds$168,681$90,741$168,681$90,741
Total Agency:
Assets:
Cash and temporary investments$691,810$539,183$691,810$539,183
Interest receivable5,18441,2295,18441,229
Total assets$696,994$580,412$696,994$580,412
Liabilities:
Accounts payable$4,293$738$4,293$738
Deposits payable524,020488,933524,020488,933
Due to other funds168,68190,741168,68190,741
Total liabilities$696,994$580,412$696,994$580,412
111
- This page intentionally left blank -
112
GENERAL FIXED ASSETS ACCOUNT GROUP
General Fixed Assets are those fixed assets of a governmental jurisdiction which
are not accounted for in an Enterprise 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.
113
CITY OF ANDOVER, MINNESOTA
Statement 38
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
For The Year Ended December 31, 2001
BalanceAdditionsDisposalsBalance
January 1,andandDecember 31,
Description2001AdjustmentsAdjustments2001
Land and improvements$2,741,610$ - $ - $2,741,610
Buildings and improvements8,191,297 - - 8,191,297
Furniture and equipment1,076,93628,739.00 - 1,105,675
Machinery and equipment5,239,188801,951.00100,647.005,940,492
Totals$17,249,031$830,690$100,647$17,979,074
114
GENERAL LONG-TERM DEBT ACCOUNT GROUP
General obligation bonds and other forms of long-term debt supported by general
revenues are obligations of a governmental unit as a whole and not its individual
constituent funds. Moreover, the proceeds of such debt may be spent on facilities
which are utilitized in the operations of several funds. For these reasons the
amount of unmatured, long-term indebtedness which is backed by the full faith
and credit of the government should be recorded and accounted for in a separate
self-balancing group of accounts titled the “General Long-Term Debt Group of
Accounts.” This debt group will include, in addition to conventional general
obligation bonds, time warrants and notes which have a maturity of more than one
year from date of issuance.
115
CITY OF ANDOVER, MINNESOTA
Statement 39
SCHEDULE OF GENERAL LONG-TERM DEBT
December 31, 2001
With Comparative Amounts For December 31, 2000
20012000
Amount Available And To Be Provided For The
Retirement of Long-Term Debt
Bonds:
Amount available in Debt Service Funds$6,049,163$7,406,642
Amount to be provided from future tax levies/
special assessment collections, and connection charges29,179,77123,701,551
Total available and to be provided$35,228,934 $31,108,193
General Long-Term Debt Payable
Special assessments on City property$ - $38,553
Bonds and certificates of indebtedness payable34,915,00030,820,000
Total bonds payable34,915,000 30,858,553
Compensated absences payable313,934249,640
Total general long-term debt payable$35,228,934 $31,108,193
116
SUPPLEMENTARY FINANCIAL INFORMATION
117
CITY OF ANDOVER, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2001
Interest Issue Maturity
RateDateDate
Bonded indebtedness:
General Obligation Bonds:
G.O. Refunding Bonds of 19983.60-3.75%12/01/9807/01/01
Public Project Revenue Bonds of 19974.50-5.90%09/01/9712/01/16
Total general obligation bonds
Special Assessment Bonds:
G.O. Improvement Bonds of 1977A5.00%02/01/7701/01/06
G.O. Improvements Bonds of 1993A4.00-4.75%08/01/9308/01/03
G.O. Improvements Bonds of 1994C5.05-5.75%10/01/9402/01/06
G.O. Improvements Bonds of 1995A4.85-5.30%07/01/9502/01/06
G.O. Crossover Refunding Bonds of 19964.15-4.50%06/01/9608/01/01
G.O. Improvement Bonds of 19964.15-5.00%06/01/9608/01/06
G.O. Improvement Bonds of 1997A4.20-4.80%05/01/9712/01/02
G.O. Improvement Bonds of 1997B3.90-4.70%07/01/9712/01/05
G.O. Improvement Bonds of 19993.75-4.40%10/01/9912/01/04
Total special assessment bonds
Tax Increment Bonds:
G.O. Tax Increment Refunding Bonds of 1994B6.97-7.87%05/01/9405/01/04
G.O. Tax Increment Bonds of 1995D4.50-5.60%10/01/9502/01/13
G.O. Tax Increment Bonds of 19964.75-5.40%06/01/9608/01/12
G.O. Tax Increment Bonds of 19994.00-5.00%06/01/9912/01/12
G.O. Tax Increment Bonds of 2000A6.75-7.10%09/01/0002/01/10
Total tax increment bonds
Certificates of Indebtedness:
1999 G.O. Equipment Certificates3.70-4.00%06/01/9902/01/04
G.O. Capital Notes 2001C2.90-3.80%06/05/0102/01/06
Total certificates of indebtedness
Permanent Improvement Revolving Bonds:
G.O. Permanent Improvement Revolving Bonds of 2000B4.20-4.375%09/01/0002/01/07
G.O. Permanent Improvement Revolving Bonds of 2001A3.20-4.00%06/05/0102/01/07
Total permanent improvement revolving bonds
State Aid Bonds:
G.O. State Aid Bonds of 2001B2.90-5.00%06/05/0102/01/17
Total bonded indebtedness
Assessments on City property6.25-10.70%N/A06/24/09
Compensated absences payableN/AN/AN/A
Total City indebtedness
118
Schedule 1
AuthorizedAmount RetiredPrincipalInterest
AndPriorCurrent OutstandingDueDue
IssuedYearsYear12/31/01In 2002In 2002
$760,000$520,000$240,000$ - $ - $ -
2,350,000120,00055,0002,175,00060,000126,005
3,110,000 640,000 295,000 2,175,000 60,000 126,005
1,215,0001,150,00065,000 - - -
3,650,0002,555,000365,000730,000365,00034,675
1,140,000450,000115,000575,000115,00028,590
2,605,000890,000255,0001,460,000265,00068,294
1,220,000920,000300,000 - - -
600,000220,000380,000 - - -
3,120,0001,910,000605,000605,000605,00029,040
6,315,0002,430,000785,0003,100,000780,000141,035
3,525,000705,000705,0002,115,000705,00090,945
23,390,000 11,230,000 3,575,000 8,585,000 2,835,000 392,579
885,000540,00090,000255,00090,00016,455
6,055,000630,000200,0005,225,000225,000263,512
2,055,000255,00085,0001,715,00095,00088,100
1,500,000 - 50,0001,450,00080,00063,475
2,445,000 - 50,0002,395,000100,000166,525
12,940,000 1,425,000 475,000 11,040,000 590,000 598,067
1,050,000 - 225,000825,000250,00027,812
1,210,000 - - 1,210,000220,00045,107
2,260,000 0 225,000 2,035,000 470,000 72,919
3,350,000 - - 3,350,000 - -
4,975,000 - - 4,975,000 - -
8,325,000 0 0 8,325,000 0 0
2,755,000 - - 2,755,000160,00078,447
52,780,000 13,295,000 4,570,000 34,915,000 4,115,000 1,268,017
338,174 - 338,174 - - -
249,640 - - 313,934 - -
$53,367,814 $13,295,000 $4,908,174 $35,228,934 $4,115,000 $1,268,017
119
CITY OF ANDOVER, MINNESOTA
Schedule 2
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION REVENUE BOND
December 31, 2001
Public
Project
Revenue
Bonds
of 1997
Bonds payable$2,175,000
Future interest payable1,230,555
Totals$3,405,555
Payments to maturity:
2002$183,310
2003190,310
2004196,740
2005202,580
2006207,810
2007212,410
2008216,415
2009224,815
2010232,255
2011238,705
2012244,218
2013248,777
2014262,370
2015269,500
2016275,340
$3,405,555
120
CITY OF ANDOVER, MINNESOTA
Schedule 3
DEBT SERVICE PAYMENTS TO MATURITY
SPECIAL ASSESSMENT BONDS
December 31, 2001
G.O.G.O.G.O.G.O.G.O.G.O.
ImprovementImprovementImprovementImprovementImprovementImprovement
BondsBondsBondsBondsBondsBonds
of 1993Aof 1994Cof 1995Aof 1997Aof 1997Bof 1999Total
Bonds payable$730,000$575,000$1,460,000$605,000$3,100,000$2,115,000$8,585,000
Future interest payable52,01378,349195,73629,040355,780182,300893,218
Totals$782,013 $653,349 $1,655,736 $634,040 $3,455,780 $2,297,300 $9,478,218
Payments to maturity:
2002$399,675$143,590$333,294$634,040$921,035$795,945$3,227,579
2003382,338142,303334,665 - 881,715765,3352,506,356
2004 - 135,763335,072 - 846,840736,0202,053,695
2005 - 133,963334,490 - 806,190 - 1,274,643
2006 - 97,730318,215 - - - 415,945
$782,013 $653,349 $1,655,736 $634,040 $3,455,780 $2,297,300 $9,478,218
121
CITY OF ANDOVER, MINNESOTA
Schedule 4
DEBT SERVICE PAYMENTS TO MATURITY
TAX INCREMENT BONDS
December 31, 2001
G.O.G.O.
Tax IncrementTax IncrementG.O.G.O.G.O.
RefundingBondsTax IncrementTax IncrementTax Increment
Bondsof 1995DBondsBondsBonds
of 1994Band 1996of 1996of 1999of 2000ATotal
Bonds payable$255,000$5,225,000$1,715,000$1,450,000$2,395,000$11,040,000
Future interest payable28,8411,954,788617,122401,060920,7333,922,544
Totals$283,841 $7,179,788 $2,332,122 $1,851,060 $3,315,733 $14,962,544
Payments to maturity:
2002$106,455$488,512$183,100$143,475$266,525$1,188,067
200399,435478,275188,587169,475279,7001,215,472
200477,951492,225193,600194,250360,7131,318,739
2005 - 577,950198,080188,650438,4751,403,155
2006 - 634,350206,955182,980431,6001,455,885
2007 - 638,125209,955177,170429,0251,454,275
2008 - 639,987217,305171,290439,7881,468,370
2009 - 639,875223,725165,270447,2751,476,145
2010 - 637,964229,365159,110222,6321,249,071
2011 - 658,525239,030152,880 - 1,050,435
2012651,500242,420146,510 - 1,040,430
2013 - 642,500 - - - 642,500
$283,841 $7,179,788 $2,332,122 $1,851,060 $3,315,733 $14,962,544
122
CITY OF ANDOVER, MINNESOTA
Schedule 5
DEBT SERVICE PAYMENTS TO MATURITY
CERTIFICATES OF INDEBTEDNESS
December 31, 2001
G.O.
1999 G.O.Capital
EquipmentNotes
Certificatesof 2001CTotal
Bonds payable$825,000$1,210,000$2,035,000
Future interest payable51,513119,721171,234
Totals$876,513 $1,329,721 $2,206,234
Payments to maturity:
2002$277,813$265,107$542,920
2003287,600261,338548,938
2004311,100263,518574,618
2005 - 269,723269,723
2006 - 270,035270,035
$876,513 $1,329,721 $2,206,234
123
CITY OF ANDOVER, MINNESOTA
Schedule 6
DEBT SERVICE PAYMENTS TO MATURITY
PERMANENT IMPROVEMENT REVOLVING BONDS
December 31, 2001
G.O.G.O.
PermanentPermanent
ImprovementImprovement
RevolvingRevolving
BondsBonds
of 2000Bof 2001ATotal
Bonds payable$3,350,000$4,975,000$8,325,000
Future interest payable519,934696,6281,216,562
Totals$3,869,934 $5,671,628 $9,541,562
Payments to maturity:
2002$143,873$210,995$354,868
2003741,0631,086,1331,827,196
2004744,8131,089,9371,834,750
2005746,9661,090,3981,837,364
2006747,2501,097,6651,844,915
2007745,9691,096,5001,842,469
$3,869,934 $5,671,628 $9,541,562
124
CITY OF ANDOVER, MINNESOTA
Schedule 7
DEBT SERVICE PAYMENTS TO MATURITY
STATE AID BOND
December 31, 2001
G.O.
State
Aid
Bonds
of 2001B
Bonds payable$2,755,000
Future interest payable1,135,332
Totals$3,890,332
Payments to maturity:
2002$238,447
2003238,030
2004239,030
2005239,545
2006239,618
2007244,298
2008243,298
2009241,943
2010245,223
2011242,913
2012245,213
2013246,884
2014242,820
2015248,320
2016248,000
2017246,750
$3,890,332
125
CITY OF ANDOVER, MINNESOTA
Schedule 8
SCHEDULE OF TAX CAPACITY RATES AND LEVIES
Net Tax
Capacity
2002$14,353,997
200117,198,249
200016,305,885
199914,605,633
20022001
Tax CapacityCertifiedTax CapacityCertified
(1)(1)
LevyLevy
RateRate
General Fund29.829%$4,281,63719.740%$3,986,555
Bond Funds3.260%467,9402.656%536,327
Watershed levy0.385%20,8490.340%25,759
33.474%$4,770,42622.736%$4,548,641
20001999
Tax CapacityCertifiedTax CapacityCertified
(1)(1)
LevyLevy
RateRate
General Fund19.784%$3,437,90520.605%$3,208,232
Bond Funds2.666%463,2802.687%418,392
Watershed levy0.113%18,8980.213%14,090
22.563%$3,920,08323.505%$3,640,714
(1)
Includes fiscal disparities
126
III. STATISTICAL SECTION (UNAUDITED)
127
CITY OF ANDOVER, MINNESOTA
Table 1
GENERAL FUND
REVENUES BY SOURCE
Years 1992 Through 2001
(UNAUDITED)
GeneralLicensesInter-
PropertyandgovernmentalCharges forInvestmentOther
YearTotalTaxesPermitsRevenueServicesFinesIncomeRevenue
1992$2,399,741$1,107,808$430,024$614,266$120,708$39,565$30,417$56,953
19932,688,9531,241,114470,371710,910152,86838,17836,93838,574
19942,987,7761,472,108410,733745,156227,96040,49643,04348,280
19953,595,7961,810,213410,212747,627549,60646,15215,71616,270
19964,101,8592,180,470390,327857,689447,19957,12552,653116,396
19974,714,3002,383,965456,413988,814578,22148,80071,224186,863
19985,805,3702,804,065694,809880,6971,018,44148,923177,570180,865
19995,701,0953,125,776609,344864,985754,62978,39662,041205,924
20006,456,0803,571,186623,662969,317900,23582,443104,657204,580
20016,924,9243,982,174720,7121,095,727722,69073,699128,701201,221
128
CITY OF ANDOVER, MINNESOTA
Table 2
GENERAL FUND
EXPENDITURES BY FUNCTION
Years 1992 Through 2001
(UNAUDITED)
Parks
GeneralPublicPublicandEconomic
YearTotalGovernmentSafetyWorksSanitationRecreationRecyclingDevelopmentUnallocated
1992$2,391,008$672,936$908,312$442,176$28,976$204,267$39,622$17,659$77,060
19932,575,052720,178937,371520,80236,904232,80950,46122,83653,691
19942,904,153804,726970,174625,80551,522294,15849,57421,91686,278
19953,146,260932,4601,060,210637,55134,795329,41658,2602293,546
19964,062,0261,068,5851,320,680947,47260,517455,51755,170 - 154,085
19974,458,7921,252,0471,409,0871,044,18395,632383,05962,281 - 212,503
19984,799,9791,551,4101,528,2821,005,394101,039461,13176,773 - 75,950
19995,769,6091,700,0861,820,4361,363,875119,957579,91688,307 - 97,032
20006,263,5341,840,6441,968,7651,591,137100,073538,52391,071 - 133,321
20016,096,2831,750,5742,087,9241,284,491135,189584,647108,390 - 145,068
129
- This page intentionally left blank -
130