The URL can be used to link to this page

Home My WebLink About2017 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 MINNESOTA - This page intentionally left blank - 1685 CROSSTOWN BOULEVARD N.W. ANDOVER, MINNESOTA 55304 (763) 755-5100 FAX (763) 755-8923 WWW.ANDOVERMN.GOV . Comprehensive Annual Financial Report of the City of Andover, Minnesota For the Year Ended December 31, 2017 Prepared By: Finance Department City of Andover I. INTRODUCTORY SECTION 1 2 Anoka County Union Newspaper - 3 4 5 6 7 8 CITY OF ANDOVER, MINNESOTA ORGANIZATION December 31, 2017 OfficeNameTerm MayorJulie TrudeJanuary 1, 2019 Council MemberSheri BukkilaJanuary 5, 2021 Council MemberJim GoodrichJanuary 1, 2019 Council MemberValerie HolthusJanuary 1, 2019 Council MemberMichael KnightJanuary 5, 2021 City Administrator / City ClerkJames DickinsonAppointed Community Development DirectorJoe JanishAppointed Director of Public Works / City EngineerDavid BerkowitzAppointed Finance ManagerLee BrezinkaAppointed Building OfficialFred PatchAppointed Fire ChiefJerry StreichAppointed AttorneyHawkins & Baumgartner, P.A.Appointed Fiscal ConsultantsEhlers & Associates, Inc.Appointed 9 CITY OF ANDOVER Organizational Chart City Council City AttorneyCity AdministratorAdvisory Boards AdministrativeBuilding InspectionsEngineeringFinanceFire ProtectionPlanningPublic WorksPolice Protection Services AdministrationCivil DefenseEngineeringFinancialFire ProtectionPlanning & ZoningStreets/Highways ServicesAdministrationServices Human ResourcesProtectiveRight-of-WayAssessingSnow & Ice InspectionsManagementRemoval NewsletterDrainage &FacilitiesStorm Sewer MappingManagement EconomicLower Rum RiverUnallocatedStreet Lighting DevelopmentWatershed Mgmt AuthorityOrganization CommunityForestryCapital EquipmentSignage CenterReserve ElectionsTrail &Debt Service FundsTraffic Signals Transportation Animal ControlConstructionUnfinanced ProjectsParks & Recreation Seal Coating InformationWater TrunkTax IncrementRecycling SystemsProjects Storm SewerBuilding FundWater City Clerk Sewer TrunkPermanentSewer Improvement Revolving Road & BridgeG.O. CapitalCentral Equipment Notes Park DedicationRisk ProjectsManagement 10 11 -This page intentionally left blank - 12 II. FINANCIAL SECTION 13 Government Auditing Standards 5921!Xijuf!Cfbs!Qbslxbz-!Tu/!Qbvm-!NO-!66221!!!!!!762/537/8111!!!!!!xxx/sfeqbuidqbt/dpn 14 Required Supplementary Information 15 Other Information Government Auditing Standards Government Auditing Standards Government Auditing Standards 16 17 18 19 20 21 22 23 24 25 26 BASIC FINANCIAL STATEMENTS 27 -This page intentionally left blank - 28 29 30 31 32 33 34 35 -This page intentionally left blank - 36 CITY OF ANDOVER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 20172016 Amounts reported for governmental activities in the statement of activities (page 30) are different because: Net changes in fund balances - total governmental funds (page 35) $ 452,634$ 1,889,662 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. (167,011)971,108 The net effect of various miscellaneous transactions involving capital assets is to increase (decrease) net position (i.e., sales, trade-ins, and donations). 285,6281,566,225 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 417,830(28,426) The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items. 1,996,7191,446,719 Vested post employment benefits are reported in the governmental funds when amounts are paid. The statement of activities reports the benefits earned during the years. This amount (2,018)(26,108) is the net effect of employee benefits earned and paid during the year. Transfer out of governmental capital assets contributed to Enterprise Funds. (52,527)(414,987) Some expenses reported in the statement of activities do not require use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (22,146)30,981 Governmental funds report pension contributions for defined benefit plans as expenditures, however, pension expense is reported in the Statement of Activities. This is the amount by which pension expense exceeded pension contributions: Pension contributions $ 297,663 Pension expense (512,951)(215,288)(409,064) Internal service funds are used by management to charge the cost of equipment maintenance and insurance to individual funds. This amount is the portion of net revenue attributable to governmental activities. 105,971175,598 Change in net position of governmental activities (page 31) $ 2,799,792$ 5,201,708 The accompanying notes are an integral part of these financial statements. 37 38 39 CITY OF ANDOVER, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 WaterSewerStorm Sewer Operating revenues: User charges $ 2,634,378$ 2,298,675$ 499,974 Meters 23,005-- Other 58,8562,402- Total operating revenues 2,716,2392,301,077499,974 Operating expenses: Personal services 467,257314,972275,997 Supplies 214,42015,96015,099 Other service charges 609,297154,750144,701 Disposal charges -1,166,322- Depreciation 901,348555,203253,092 Total operating expenses 2,192,3222,207,207688,889 Operating income (loss) 523,91793,870(188,915) Nonoperating revenues (expenses): Intergovernmental revenue --- Investment income 33,09329,7362,972 Gain on sale of capital assets 6,63520,7105,510 Interest expense (100,127)-- Total nonoperating revenues (expenses) (60,399)50,4468,482 Income (loss) before contributions and transfers 463,518144,316(180,433) Capital contributions 259,080144,993129,797 Transfers: Transfers in 54,228-- Transfers out (150,250)(446,680)- Total transfers (96,022)(446,680)- Change in net position 626,576(157,371)(50,636) Net position - January 1 18,642,95018,649,8427,760,409 Net position - December 31 $ 19,269,526$ 18,492,471$ 7,709,773 Net changes in net position reported above Amounts reported for business-type activities in the statement of activities are different because: Internal service funds are used by management to charge the cost of equipment maintenance and insurance to individual funds. This amount is the portion of net revenue attributable to business-type activities. Change in net position of business-type activities The accompanying notes are an intregral part of these financial statements. 40 Statement 7 Totals IntraGovernmental Activities - ActivityTotalsInternal Service Funds Eliminations2017201620172016 $ -$ 5,433,027$ 5,101,941$ 1,155,907$ 1,119,766 -23,00528,591-- -61,25855,11026,074109,594 -5,517,2905,185,6421,181,9811,229,360 -1,058,2261,011,254446,274407,298 -245,479225,491289,765280,455 (30,600)878,148906,371331,546339,420 -1,166,3221,132,562-- -1,709,6431,677,698-- (30,600)5,057,8184,953,3761,067,5851,027,173 30,600459,472232,266114,396202,187 --2,681-- -65,80168,76810,6119,907 -32,8552,192-- -(100,127)(213,391)-- -(1,471)(139,750)10,6119,907 30,600458,00192,516125,007212,094 -533,8703,085,628-- -54,22885,096-- (30,600)(627,530)(627,530)-- (30,600)(573,302)(542,434)-- -418,5692,635,710125,007212,094 -45,053,20142,417,491956,898744,804 $ -$ 45,471,770$ 45,053,201$ 1,081,905$ 956,898 $ 418,569$ 2,635,710 19,03636,496 $ 437,605$ 2,672,206 41 42 43 44 Governmental activities business-type activities Direct expenses Program revenues general revenues economic resources measurement focusaccrual basis of accounting current financial resources measurement focusmodified accrual basis of accounting available 45 General Fund Water Trunk Capital Projects Fund (CPF) Sewer Trunk CPF Road and Bridge CPF Tax Increment Projects CPF Permanent Improvement Revolving CPF Water Fund Sewer Fund Storm Sewer Fund Internal Service Funds (ISF) Agency Funds program revenues general revenues operating nonoperating 46 47 48 49 Accounting and Financial Reporting for Intangible Assets 50 Nonspendable Restricted Committed Assigned Unassigned 51 deferred outflows of resources not deferred inflows of resources not Pensions. fund balance – total governmental funds net position – governmental activities 52 net changes in fund balances – total governmental fundschanges in net position of governmental activities 53 54 55 56 57 58 59 60 61 62 63 abatement bonds certificates of indebtedness referendum bonds promissory note payable compensated absences G.O. revenue bonds 2012C G.O. Abatement Bonds 64 2014A G.O. Equipment Certificates. 2016A G.O. Equipment Certificates. 2010A G.O. Open Space Referendum Bonds. 2009A G.O. Water Revenue Bonds. 2016B G.O. Water Revenue Refunding Bonds. 65 66 67 68 69 70 Minnesota Statutes Minnesota Statutes 71 Accounting and Financial Reporting by Employers for Post Employment Benefits Other than Pensions. plan 72 73 74 75 76 77 78 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions Certain Asset Retirement Obligations. Fiduciary Activities. Omnibus 2017. Certain Debt Extinguishment Issues. Leases. Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. 79 -This page intentionally left blank - 80 REQUIRED SUPPLEMENTARY INFORMATION 81 82 83 CITY OF ANDOVER, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS PLAN For The Year Ended December 31, 2017 Unfunded ActuarialUAAL as a ActuarialActuarialAccruedPercentage of ActuarialValue ofAccruedLiabilityFundCoveredCovered Valuation DateAssetsLiability( UAAL )RatioPayrollPayroll ( a )( b )( b-a )( a/b )( c )(( b-a ) / c ) January 1, 2011$ -$ 273,046$ 273,0460.00%$ 5,298,3675.15% January 1, 2014-247,646247,6460.00%5,728,3174.32% January 1, 2017-143,740143,7400.00%6,414,6212.24% 84 85 86 87 88 89 90 91 -This page intentionally left blank - 92 COMBINING AND INDIVIDUAL FUND STATEMENTSAND SCHEDULES 93 94 95 96 97 98 99 100 101 -This page intentionally left blank - 102 103 104 105 106 107 -This page intentionally left blank - 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 CITY OF ANDOVER, MINNESOTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 36 FIDUCIARY FUNDS For The Year Ended December 31, 2017 BalanceBalance January 1,December 31, 2017AdditionsDeletions2017 General Escrow Fund Assets: Cash and investments $ 37,254$ 27,517$ (40,255)$ 24,516 Liabilities: Accounts payable 13419,926(20,004)56 Deposits payable 37,1207,591(20,251)24,460 Total liabilities $ 37,254$ 27,517$ (40,255)$ 24,516 General Agency Fund Assets: Cash and investments $ 234,071$ 1,016,441$ (989,322)$ 261,190 Liabilities: Accounts payable -378,702(376,524)2,178 Deposits payable 234,071637,739(612,798)259,012 Total liabilities $ 234,071$ 1,016,441$ (989,322)$ 261,190 Total Fiduciary Funds Assets: Cash and investments $ 271,325$ 1,043,958$ (1,029,577)$ 285,706 Liabilities: Accounts payable 134398,628(396,528)2,234 Deposits payable 271,191645,330(633,049)283,472 Total liabilities $ 271,325$ 1,043,958$ (1,029,577)$ 285,706 128 129 130 131 132 133 134 135 Fund Balance Reporting and Governmental Fund Type Definitions. 136 137 138 139 140 141 142 143 144 145 146 147 148 149 -This page intentionally left blank - 150 151 152 153 154 155 -This page intentionally left blank - 156 157 158 159 160 IV.OTHER FINANCIAL INFORMATION 161 162 163 164 165 166