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HomeMy WebLinkAboutBudget - 2025 NI) OVE, 2025 Annual Operating i Budget ,r � N%alai unrra�rml�blU � IU�tOlGlff a„ ni� IC�I�k� �,w� ,Yip IV�IYw�p ,r i a 7 63 ME 1685 Crosstown 11Mvd IIN p Andover, MN 55304 www. iii, o urii,-nui. GOVERNMENT FINANCE OFFiCERS ASSOCIATION Distinguished Budaet 1, resentation Award PRE,SENTED TO City of Andover Minnesota For the Figoal Yeav Begim�ng January 01, 2024 / e Ex cutivc Direclar CITY OF ANDOVER 2025 Annual Operating Budget Table of Contents Introduction General Fund(Continued) Public Official Listing.................................................................................... 1 Planning and Zoning.......................................................................................72 OrganizationalChart.......................................................................................2 Engineering.....................................................................................................73 BudgetMessage..............................................................................................3 Facilities Management....................................................................................74 City Council Resolution Adopting Budget.....................................................27 Police Protection.............................................................................................75 Valuesand Goals............................................................................................30 Fire Protection................................................................................................76 Budget Development Process.........................................................................31 Protective Inspection......................................................................................77 2025 Budget Development Calendar.............................................................. 32 Emergency Management................................................................................78 Accounting,Auditing and Financial Reporting Policy...................................33 Animal Control...............................................................................................79 OperatingBudget Policy.................................................................................34 Streets&Highways........................................................................................ 80 RevenuePolicy...............................................................................................36 Snow&Iee..................................................................................................... 81 CapitalImprovement Policy...........................................................................36 Street Signs..................................................................................................... 82 DebtAdministration.......................................................................................37 Traffic Signals................................................................................................ 83 InvestmentPolicy...........................................................................................38 Street Lighting................................................................................................ 84 RevenueProjections.......................................................................................41 Street Lights Billed......................................................................................... 85 2025 Budget Summary by Fund Type............................................................46 Parks&Recreation......................................................................................... 86 2025 Budget Summary—Revenues and Expenditures Fund Summary..........47 Natural Resource Preservation........................................................................ 87 2025 Budget Summary—Revenues and Expenditures All Funds..................48 Recycling........................................................................................................ 88 2025 Budget Summary—Revenues and Expenditures by Fund Type............49 Unallocated..................................................................................................... 89 Governmental Funds—Major Funds Breakdown...........................................50 Special Revenue Funds Revenue Comparison—General Fund............................................................51 Definition........................................................................................................ Expenditure Comparison—General Fund_...................................................... 52 Statement of Revenues,Expenditures and Changes in Fund Balance—All Expenditure Budget Summary—By Department—General Fund.................. 53 Special Revenue Funds............................................................................93 Five Year Financial Projections—General Fund............................................54 Economic Development Authority Fund 2025 FTE Summary........................................................................................55 Statement of Revenues,Expenditures and Changes in Fund Balance.....94 2025 Capital Improvement Budget.................................................................56 Fund Overview........................................................................................95 General Fund Local Affordable Housing Aid Fund Definition........................................................................................................ 59 Statement of Revenues,Expenditures and Changes in Fund Balance.....96 Statement of Revenues,Expenditures and Changes in Fund Balance............61 Fund Overview........................................................................................97 Mayor&Council............................................................................................62 Community Center Fund Administration................................................................................................63 Statement of Revenues,Expenditures and Changes in Fund Balance.....98 Newsletter.......................................................................................................64 Fund Overview........................................................................................99 Human Resources...........................................................................................65 Drainage and Mapping Fund Attorney..........................................................................................................66 Statement of Revenues,Expenditures and Changes in Fund Balance..... 100 CityClerk.......................................................................................................67 Fund Overview........................................................................................ 101 Elections.........................................................................................................68 Lower Rum River Watershed Fund Financial Administration................................................................................69 Statement of Revenues,Expenditures and Changes in Fund Balance..... 102 Assessing........................................................................................................70 Fund Overview........................................................................................ 103 InformationSystems.......................................................................................71 CITY OF ANDOVER 2025 Annual Operating Budget Table of Contents Debt Service Funds(Continued) Special Revenue Funds(Continued) General Obligation Bonds—2021A G.O. Street Reconstruction Bonds Forestry Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 130 Statement of Revenues,Expenditures and Changes in Fund Balance..... 104 Fund Overview........................................................................................ 131 Fund Overview........................................................................................ 105 General Obligation Bonds—2024A G.O. Street Reconstruction Bonds Right of Way Management/Utility Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 132 Statement of Revenues,Expenditures and Changes in Fund Balance..... 106 Fund Overview........................................................................................ 133 Fund Overview........................................................................................ 107 Capital Projects Funds Charitable Gambling Fund Definition......................................................................... Statement of Revenues,Expenditures and Changes in Fund Balance..... 108 Statement of Revenues,Expenditures and Changes in Fund Balance—All Fund Overview........................................................................................ 109 Capital Projects Funds.............................................. Crack Seal&Pavement Seal Fund Water Trunk Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 110 Statement of Revenues,Expenditures and Changes in Fund Balance..... 138 FundOverview........................................................................................ III Fund Overview........................................................................................ 139 CARES Act/ARPA Funding Sewer Trunk Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 112 Statement of Revenues,Expenditures and Changes in Fund Balance..... 140 FundOverview........................................................................................ 113 Fund Overview........................................................................................ 141 Debt Service Funds Road and Bridge Fund Definition........................................................................................................ 115 Statement of Revenues,Expenditures and Changes in Fund Balance..... 142 Statement of Revenues,Expenditures and Changes in Fund Balance—All Fund Overview........................................................................................ 143 Debt Service Funds.................................................................................. 117 Park Dedication Projects Certificates/Capital Notes—2020A G.O.Equipment Certificate Statement of Revenues,Expenditures and Changes in Fund Balance..... 144 Statement of Revenues,Expenditures and Changes in Fund Balance..... 118 Fund Overview........................................................................................ 145 Fund Overview........................................................................................ 119 Building Fund Certificates/Capital Notes—2021A G.O.Equipment Certificate Statement of Revenues,Expenditures and Changes in Fund Balance..... 146 Statement of Revenues,Expenditures and Changes in Fund Balance..... 120 Fund Overview........................................................................................ 147 Fund Overview........................................................................................ 121 Trail &Transportation Certificates/Capital Notes—2024A G.O.Equipment Certificate Statement of Revenues,Expenditures and Changes in Fund Balance..... 148 Statement of Revenues,Expenditures and Changes in Fund Balance..... 122 Fund Overview........................................................................................ 149 Fund Overview........................................................................................ 123 Capital Equipment Reserve General Obligation Bonds—2018A G.O. Capital Tmprovement Plan Bonds Statement of Revenues,Expenditures and Changes in Fund Balance..... 150 Statement of Revenues,Expenditures and Changes in Fund Balance..... 124 Fund Overview........................................................................................ 151 Fund Overview........................................................................................ 125 2021A G.O.Equipment Certificates General Obligation Bonds—2012C G.O.Abatement Bonds Statement of Revenues,Expenditures and Changes in Fund Balance..... 152 Statement of Revenues,Expenditures and Changes in Fund Balance..... 126 Fund Overview........................................................................................ 153 Fund Overview........................................................................................ 127 2024A G.O. Capital Improvement Plan Bonds General Obligation Bonds—2019A G.O. Taxable Abatement Bonds Statement of Revenues,Expenditures and Changes in Fund Balance..... 154 Statement of Revenues,Expenditures and Changes in Fund Balance..... 128 Fund Overview........................................................................................ 155 FundOverview........................................................................................ 129 CITY OF ANDOVER 2025 Annual Operating Budget Table of Contents Capital Projects Funds(Continued) Capital Improvements Plan 2025-2029.......................................................... 185 Tax Increment Projects Summary of Outstanding Bond Issues............................................................200 Statement of Revenues,Expenditures and Changes in Fund Balance..... 156 Future Debt Service Requirements.................................................................201 Fund Overview........................................................................................ 157 Computation of Legal Debt Margin................................................................202 Permanent Improvement Revolving Property Tax Levies and Collections..............................................................203 Statement of Revenues,Expenditures and Changes in Fund Balance..... 158 Special Assessment Levies and Collections...................................................203 FundOverview........................................................................................ 159 Principal Taxpayers........................................................................................204 2021A G.O Street Reconstruction Bonds Building Pennits,Property Values and Households.......................................204 Statement of Revenues,Expenditures and Changes in Fund Balance..... 160 Demographics.................................................................................................205 Fund Overview........................................................................................ 161 Miscellaneous Statistical Data......................................... 2024A G.O Street Reconstruction Bonds Glossary of Tenns...........................................................................................207 Statement of Revenues,Expenditures and Changes in Fund Balance..... 162 FundOverview........................................................................................ 163 Enterprise Funds Definition........................................................................................................ 165 Statement of Revenues,Expenditures and Changes in Retained Earnings— All Enterprise Funds................................................................................ 167 Water Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 168 FundOverview........................................................................................ 169 Sanitary Sewer Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 170 FundOverview........................................................................................ 171 Storm Sewer Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 172 FundOverview........................................................................................ 173 Internal Service Funds Definition........................................................................................................ 175 Statement of Revenues,Expenditures and Changes in Fund Balance—All Internal Service Funds............................................................................. 177 Central Equipment Maintenance Fund Statement of Revenues,Expenditures and Changes in Fund Balance..... 178 FundOverview........................................................................................ 179 Risk Management Statement of Revenues,Expenditures and Changes in Fund Balance..... 180 FundOverview........................................................................................ 181 Appendix Budget Year 2025—Operating Transfers....................................................... 183 2025—2029 Capital Improvement Plan Development Calendar.................... 184 This page left blank intentionally. CITY OF ANDOVER Adopted 2025 City Budget Sheri Bukkila Mayor Jamie Barthel Councilmember Ted Butler Councilmember Rick Engelhardt Councilmember Randy Nelson Councilmember Sarah Cotton City Administrator Lee Brezinka Finance Manager Joe Janish Community Development Director David Berkowitz Director of Public Works / City Engineer Joe Heidelberger Building Official Dennis Jones Fire Chief CITY OF ANDOVER 2025 Organizational Chart Residents City Council City Attorney City Administrator Adviso Boards Administration Building Inspections City Clerk Engineering Finance Fire Protection Planning Public Works Police Protection Administrative Protective Clerk's Office Engineering Financial Fire Planning&Zoning Sheets& Services Inspections Services Administration Protection Services Highways Human Resources Emergency Elections Right-of-Way Assessing LAHA Snow&Ice Management Management Removal Newsletter Animal Control Drainage& Facilities Street Lighting Mapping Management Economic Lower Rum River Unallocated Signage Development Watershed Mgmt Authority Organization Community Forestry Capital Equipment Traffic Center Reserve Signals Chartable Trail& Debt Service Parks& Gambling Transportation Funds Recreation Recycling Crack Seal& Tax Increment Water Pavement Seal Projects Information Water Building Sewer Services Trunk Fund Sewer Permanent Central Trunk Improvement Equipment Revolving Storm G.O.Capital Natural Resources Sewer Notes Preservation Road&Bridge Risk Management Park Dedication Projects 2 I f Y . F NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor, City Council Members and Residents of Andover FROM: Sarah Cotton, City Administrator SUBJECT: Adopted 2025 City Budget DATE: December 3, 2024 INTRODUCTION City Code 1-6-2 C. Major Areas of Accountability require the City Administrator to submit an annual budget to Council,which accurately reflects the financial needs of the City organization. Additionally, state law requires that the Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 30, 2024. In response to these requirements, a proposed budget was presented to the Council on September 3, 2024, in advance of this deadline. The council held budget-planning sessions on March 26, April 23, May 28, June 25, and August 27 to discuss budget priorities and adopted the preliminary 2025 City Levy on September 3, 2024. Additional budget discussion was held with the Council on September 24, October 22,and November 26 before the public hearing that was held on December 3, 2024. The Council's final action on adopting the 2025 City Budget and 2025 Levy occurred on December 3, 2024. The official adoption of the 2025 Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 30, 2024. This budget document should be viewed as more than just a collection of financial data, but as the financial plan in which the organization will implement and accomplish Council policies, as well as meet the articulated needs of the community and residents. In addition to the financial data contained within, this document includes information on the City organization, describes programs and services, and provides statistical values measuring activity performance and workloads. Most importantly,this budget reflects the City's plans,policies,procedures and objectives regarding services to be provided in 2025. As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of their specific service needs,prioritized spending requests to achieve the most effective operational delivery of services, and then balanced the allocation of the City's human and financial resources against those needs. It has been our goal to accomplish this in a fair, impartial and balanced manner that meets with the approval of Council and the residents we serve. 3 Mayor, Councilmembers, Residents 2025 Adopted City Budget GENERAL INFORMATION The city we know today as Andover was first organized in 1857 under the name "Round Lake Township." However, in 1860 the name was changed to "Grow Township" in honor of Congressman Galusha A. Grow of Pennsylvania. Congressman Grow spoke at a political campaign in Anoka that year, and the town name was changed to reflect Congressman Grow because of his strong advocacy of the Union cause. At that time, the population was 330 and included the geographical area we know today as Ham Lake. In fact, the area of Ham Lake was considered a part of Grow Township until 1871. In 1972, the Grow Township Board of Supervisors recognized that the town was growing at a very rapid rate. They felt a village form of government would provide better services to the community. Board supervisors then voted in favor of proceeding with the incorporation process. The board voted to submit a new name for the village. "Andover Village" was chosen because the name Andover had historical interest. The historical interest, we believe, came from the Andover train station. You may have heard the popular"train myth" about how Andover received its name. The myth states that a train tipped over in a swamp, and an eyewitness, relaying the incident, said it "went over and over," thereby naming the city "Andover." However, research reveals that the name Andover first appeared in an article dated March 14, 1899, in the Anoka County Union Newspaper-before train tracks were ever built in the city. The article stated that the Eastern Minnesota line of the Great Northern Railway was in the process of constructing railroad tracks from the Coon Creek Cut-off to the North. The railway announced that new railroad stations with mathematical precision were to be located five miles apart from each other. The new stations (from Coon Creek to the North, along the new railroad line)were to be named Andover, Cedar, Bethel, Isanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4, 1899, the first train passed through the Andover station. Where the railway produced the name Andover remains unknown. Andover Village was established in 1972 and then became the City of Andover, a city of the fourth class, in 1974. Today the City of Andover's population exceeds 20,000, classifying it as a second-class city. BUDGET GUIDELINES The following are City Council's 2025 Budget Development guidelines established by the City Council on March 26, 2024, used by City Staff while preparing their proposed operating budgets, and presented with a brief description of the outcome of each guideline as part of the budget process: 4 Mayor, Councilmembers, Residents 2025 Adopted City Budget 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness using sustainable revenue sources and operational efficiencies. Note: The Anoka County Assessor estimated taxable market value figures for the City of Andover reflect a 0.4% increase in total taxable market value for 2025, last year (2024) the increase was 2.93%. 2) A fiscal goal that works toward establishing the General Fund working capital fund balance at no less than 45% of planned 2024 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management and information technology) through targeting revenue enhancements or expenditure limitations in the 2024 adopted General Fund budget. Note: With property tax revenues making up close to 80% of the total General Fund revenues, cash flow designations approaching 50% are appropriate and are recommended by the City's auditor. The 2024 budget development exceeded this guideline for cash flow, also emergency fund balances(approximately 3%ofplanned General Fund expenditures)are in place to stabilize the situation and not be a complete solution. The City Council did approve at the November 19t' Council meeting a $93,700 transfer to the Capital Equipment Reserve Capital Projects Fund to offset the costs related to the August 2024 storm. 3) A commitment to limit the 2025 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The adopted 2024 debt levy was 21.50% of the gross tax levy. The 25%guideline for 2025 is attained via the structured management of the current long-term debt as an equipment certificate and street reconstruction bonds are contemplated for late 2024. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed. Equipment will be replaced based on a cost benefit analysis rather than a year-based replacement schedule. Note: The City Vehicle Purchasing Committee has been meeting and is performing this analysis and will make recommendations on equipment needs to the City Council as part of the 2025-2029 Capital Improvement Plan (CIP) development process. The 2025-2029 CIP was adopted after a public hearing at the September 17`h Council meeting. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short- term fiscal targets are in line with long-term fiscal projections. 5 Mayor, Councilmembers, Residents 2025 Adopted City Budget Note: The City continually maintains various financial models to determine the long-term impacts ofpresent-day expenditures and financing decisions. Fiscal assumptions are based upon a set of financial data including growth factors, tax capacity valuations,per capita spending, fund balance reserves and debt ratios. 6) Continued commitment to strategic planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and facility needs. Note: On May 25, 2023, and June 8, 2023, the Andover City Council and Staff Leadership Team convened work sessions with a Facilitator for the purpose of updating its long-term vision, organizational values, external values, and short-term goals. The outcome of those sessions was summarized, and the Council adopted the updated "City,ofAndover Strategic Plan"at the June 20'h,2023 City Council meeting. Administration will ensure that the direction provided is integrated into department work plans and budgets. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns and demands, and to do so in a cost-effective manner. Note: Special attention will be given to fiscal values, commercial& residential development or redevelopment, collaboration opportunities, service delivery, livability, and image of the community. SIGNIFICANT EVENTS OF THE CURRENT YEAR Andover was one of the fastest growing cities in terms of population growth in the Twin Cities metropolitan area between 2000 through 2006. Since 2006, the pace of residential development has slowed and is attributable to regional and national economic factors. The City has taken a revised outlook on where growth is most likely to occur in contrast to previously determined urban services staging areas. This has required the City to identify alternate locations for sewer supported growth. In 2024, the City issued 101 new single-family building permits with a total valuation of $35,137,878 and 5 new commercial building permits with a valuation of $2,400,00 compared to 64 new single-family building permits with a total valuation of $21,454,268 and 3 new commercial building permits with a valuation of $22,344,000 the prior year. More detailed information is available on City growth later in this budget message. Some additional noteworthy events/activities that occurred in 2024 include: 6 Mayor, Councilmembers, Residents 2025 Adopted City Budget 1) In 2023, the City secured $6.1 million in State funding to extend municipal water into the Red Oaks neighborhood, a neighborhood where private wells were discovered to be contaminated with the chemical 1,4-dioxane while conducting water sampling near the Waste Disposal Engineering (WDE) Closed Landfill in Andover. The project was completed ahead of schedule in 2024. 2) New residential Final Plat approvals included a final plat for Legacy at Petersen Farms 2"d Addition providing 8 rural lots. The City currently has a supply of 119 urban lots and 23 rural lots (which includes the lots above). 3) In 2024, the City saw commercial, industrial and institutional construction throughout the community. Many businesses came to Andover that did extensive tenant finishes, upgrades or remodels in existing multi-tenant buildings, including as follows: Sandhill Nursery& Green House, and Mae Dance Company. Power Engineering and Manufacturing (PEM) acquired a recently vacant building in Andover Station North. 4) In 2024 The City Council approved two new structures on the final lot in Clocktower Commons which will be Starbucks and Chipotle. Construction started in 2024 and is expected to be completed in mid-2025. 5) In 2024 Transform Church started a parking lot expansion to accommodate their parking needs for service and also events that are occurring at their location. 6) Andover Crossings, a development project that started construction in 2022 was to provide multifamily housing and almost 5 acres of additional commercial land for future development. In this development, the City started review of a Circle K/Holiday convenience store. 7) JA Wedum and SilverCrest received City Council approval to construct a 218-unit residential development with 1.5 acres for a commercial lot. Construction of the Independent/Assisted Living/Memory Care facility is expected to start spring of 2025. 8) In 2024, Legacy Christian Academy, a K-12 private school, finished the remaining expansion area and also remodeled classroom areas of the original building. 9) Andover residents continue to have one of the highest recycling rates per person for all recyclable materials in Anoka County. In 2014, the City added a new Recycling Center to expand the current recycling opportunities for Andover residents. In 2024, the City continued to host monthly recycling events (on weekends), with a specific focus, such as paper shredding and appliance or electronics collection. 7 Mayor, Councilmembers, Residents 2025 Adopted City Budget 10)A strategic planning session was held with the City Council on May 25, 2023, and June 8, 2023, the Andover City Council and Staff Leadership Team convened work sessions with a Facilitator for the purpose of updating its long-term vision, organizational values, external values, and short-term goals. The outcome of those sessions was summarized, and the Council adopted the updated "City of Andover Strategic Plan" at the June 20, 2023, City Council meeting. 11)The City's Annual Comprehensive Financial Report (ACFR) for the year ended December 31, 2023, was awarded the Government Finance Officers Association's "Excellence in Financial Reporting Award." The City completed this document internally and recognized significant cost savings in the form of reduced financial consulting fees.This is the twenty-second consecutive year receiving the award and it is anticipated that the City's ACFR for the year ended December 31, 2024, will also achieve this award. 12)For the twenty-third year in a row, the City of Andover was awarded the Government Finance Officers Association Distinguished Budget Presentation Award for the City's 2024 Annual Budget. This award recognizes excellence in the preparation of the City's budget document as a policy document, an operations guide, a financial plan, and a communications device. 13)Ongoing implementation of a single-family rental housing license program to provide property owners/landlords with educational materials and checklists on how to inspect and maintain the exterior of the property, a list of potential ordinance violations that may occur with a rental property, and an exterior inspection of the building and grounds with city staff. This program was authorized by the Andover City Council in 2009 and is reviewed annually. There were close to 270 single-family rental licenses issued throughout the City in 2024. 14)The City continues to make considerable progress on the process of digitally imaging documents retained, this includes standard and legal documents and large construction plan documents. The imaging project has helped the City reduce staffing through data storage retrieval efficiencies, eliminated the need for office expansion and has expedited City research projects. 15)The City continues to utilize updates to our financial management software to improve reporting and operating efficiencies. These updates continue to yield reduced personnel costs and more timely reports. In 2024, the City continues to see increased growth in the number of online and counter credit card payments for various City permits and services. Approximately 58% of the Building Department's permits are done online, saving our customers considerable time and travel expenses. 8 Mayor, Councilmembers, Residents 2025 Adopted City Budget OVERVIEW The Adopted 2025 Budget anticipates General Fund revenues in the amount of$15,218,547 to meet anticipated budgeted expenditures in the amount of$15,718,155, thus a decrease in (use of) fund balance is planned. As a result, total General Fund balance reserves are projected to decrease to 67.09% in 2025 as compared to 72.40% in 2024 in conjunction with corresponding expenditures for those years. The Adopted 2025 General Fund Budget represents an increase in expenditures of$742,542 over last year. Designated capital operating levies increased $750,430 in 2025 bringing the balance to $3,224,868. The 2025 Debt Service Levy ($4,881,034) includes two equipment notes, two abatement bonds, capital improvement plan bonds and two street reconstruction bonds; and increases the City debt ratio to gross City levy to 23.92% from 21.50% for the prior year. The increase in General Fund expenditures is primarily related to public safety and public works. The police and fire increased $409,025 with the law enforcement contract increasing 5.27% ($197,133) and fire increasing $211,892, both related to salaries and benefit increases to remain competitive. Public works increased $173,395 compared to the 2024 budget primarily due to salary and benefit increases. General Fund expenditure trends since 2019 are as follows: Expenditures Expenditures Before Transfers Population Per Capita Expenditures Per Capita % Change $500 2019 Actual $ 11,100,098 n/a 32,208 $ 344.64 $450 2020 Actual $ 11,395,878 2.66% 32,458 $ 351.10 $400 2021 Actual $ 12,091,500 6.10% 32,708 $ 369.68 $350 2022 Actual $ 12,569,831 3.96% 32,822 $ 382.97 $300 2023 Actual $ 13,019,879 3.58% 33,089 $ 393.48 $250 2024 Estimate $ 15,161,118 16.45% 33,321 $ 455.00 2025 Adopted $ 15,718,155 3.67% 33,554 $ 468.44 $200 2019 2020 2021 2022 2023 2024 2025 Note: The population figures were estimates by the Met Council. The 2025 Adopted Budget provides for an adopted tax capacity rate of 36.280%, which compares to 32.181% for 2024 (this rate comparison excludes the open space and watershed levies). The 2025 increasing tax capacity rate is reflective of an increase in the adopted tax levy slightly reduced by the minimal growth in the tax capacity values. 9 Mayor, Councilmembers, Residents 2025 Adopted City Budget Tax Capacity Values Tax Capacity Rates % Change % Change 45.0% Tax Capacity Rates 2019 $32,975,265 n/a 35.310% n/a 2020 $36,099,539 9.47% 35.656% 0.98% 40.0% 2021 $37,366,775 3.51% 35.574% -0.23% 2022 $40,210,548 7.61% 35.994% 1.18% 35.0% 2023 $50,267,978 25.01% 30.873% -14.23% 2024 $52,292,926 4.03% 32.181% 4.24% 30.0% 2025 $52,684,446 0.75% 36.280% 12.74% 2019 2020 2021 2022 2023 2024 2025 Note: The tax capacity rates do not include the open space and watershed levies. Some highlights of the Adopted 2025 Budget are as follows: Capital Projects Levy — The 2025 Budget specifically designates $3,184,868 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($300,000), Facility Maintenance Reserve ($355,000), Road and Bridge ($2,400,000), Pedestrian Trail Maintenance ($114,868) and Park Projects ($15,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy was calculated based on a detailed analysis of road conditions and the needs of the city street system; with Capital Outlay, Pedestrian Trail Maintenance and Park Levies changed according to the City Council budget guidelines. • Road and Bridge—Under the Capital Projects Levy, a total of$2,514,868 is for transportation programming related to maintaining City streets, roadways and pedestrian trails. Approximately 4.57% ($114,868) of this levy is dedicated towards pedestrian trail maintenance, the remaining $2,400,000 dedicated to the Street Improvement Program. • Park Improvements—Under the Capital Projects Levy, $15,000 is designated for miscellaneous park related capital projects that come up throughout the year. The 2025 levy remains the same as the 2024 levy. • Capital Equipment/Projects — Under the Capital Projects Levy, $300,000 is designated to underwrite a wide range of capital improvement/equipment project expenditures. Through the annual levy designation, the City, over time, will be able to build a fund reserve to avoid cash flow"spikes"and address a wide range of capital improvement needs under a more controlled spending environment. 10 Mayor, Councilmembers, Residents 2025 Adopted City Budget This designated levy is to address a wide range of facility maintenance and equipment needs. The 2025 levy remains the same as the 2024 levy. Facility Maintenance Reserve—Under the Capital Projects Levy, $355,000 is designated to help fund many maintenance-related repairs identified in the recent facility condition assessment. The 2025 levy remains the same as the 2024 levy. Sheriff's Police Contract Services—The Anoka County Sheriff's contract reflects a 5.27%general increase($197,133). The 2025 Budget includes 72 hours per day of patrol service, six hours per day of service provided by a Community Service Officer, two Patrol Investigators, and two Officers assigned to Community Oriented Policing. The Crime Watch Coordinator position will now be under the Sheriff service umbrella. Attorney- The City Attorney budget reflects a 1.95% general increase ($4,350) over the 2024 budget. Council Memberships and Contributions —The following are included as part of the 2025 General Fund budget: ■ North Metro Mayors Association $14,261 - membership ■ Metro Cities $10,027 - membership ■ Mediation Services $ 6,628 -program contribution ■ YMCA—Water Safety Program $ 9,000 -program contribution (youth services) ■ Alexandra House $15,000 -program contribution (domestic abuse programs) ■ Youth First(Program Funding) $12,000 - program contribution (youth services) ■ NW Anoka County Community Consortium - JPA $10,000 -program contribution (youth services) ■ Teen Center Funding (YMCA) $ 5,600 - program contribution (youth services) ■ Lee Carlson Central Center for Family Resources $ 2,500 -program contribution (mental health services) ■ Andover Senior Center $ 2,500 - program contribution (senior services) The following memberships/contributions are included as part of the 2025 budget in other funds: ■ Youth First— City Partner Fee $ 4,000 Charitable Gambling Fund -program contribution (youth services) ■ Teen Center Funding (YMCA) $20,400 Charitable Gambling Fund -program contribution (youth services) ■ Alexandra House $ 9,500 Charitable Gambling Fund -program contribution (domestic abuse programs) ■ Senior High Parties $ 2,000 Charitable Gambling Fund - donation (youth programs) ■ Family of Promise $ 4,000 Charitable Gambling Fund -program contribution (homelessness programs) ■ Stepping Stone $ 2,000 Charitable Gambling Fund -program contribution (homelessness programs) 11 Mayor, Councilmembers, Residents 2025 Adopted City Budget ■ Hope for Youth $ 2,000 Charitable Gambling Fund -program contribution (homelessness programs) ORGANIZATIONAL MANAGEMENT Staffing and Staffing Cost Reallocation — No new positions were added in 2025; but consistent with the new strategic plan, the City will be prioritizing staff to assure that the City of Andover is supported by talented and well-supported officials and that employees operate in a strong organizational culture providing stability, creativity, and excellence in delivery of service. There are anticipated retirements and staff vacancies within 2025 and the next few years; in response, Administration/Human Resources will continue to focus on succession planning,utilization of internship opportunities,continued cross-training of staff,and/or realignment of resources. Cost-of-Living Adjustments—The total compensation package for 2025 includes step changes for eligible employees and a 3.00% cost of living adjustment. Administration and Human Resources continually review position-based salaries in detail to confirm competitiveness with other government entities. For a few positions to remain competitive with other governmental entities, various department budgets have market rate salary adjustments for 2025. The current Public Works Union contract expires December 31, 2025, and provides for a 3.00% COLA for 2025. Health Insurance Costs—Premiums for health insurance increased 9.50% in 2025. Employer health care contributions are to be maintained at an employer ratio of 76% of the low-end family coverage and 100% of the single coverage. This will be the 18th year the City will be offering a high deductible insurance plan with a health savings account (HSA); but in 2020, the City added a health reimbursement arrangement(HRA) to "buy down"the premium and continues to do so. CITY GROWTH New institutional/commercial/industrial businesses moved to Andover in 2024. These business' included Sandhill Nursery & Green House, and Mae Dance Company. Starbucks and Chipotle started construction at their locations as well. Power Engineering and Manufacturing (PEM) acquired a recently vacant building in Andover Station North. Anoka County completed construction on a new 911 Radio Shop. New residential Final Plat approvals included a final plat for Legacy at Petersen Farms 2nd Addition providing 8 rural lots. The City currently has a supply of 119 urban lots and 23 rural lots. In 2024, the City issued 101 new single-family building permits with a total valuation of$35,137,878 and 5 new commercial building permits with a valuation of$2,400,00 compared to 64 new single-family building permits with a total valuation of$21,454,268 and 3 new commercial building permits with a valuation of$22,344,000 the prior year. The 2020 census shows the population at 32,624. 12 Mayor, Councilmembers, Residents 2025 Adopted City Budget The growth over the last several years continues to produce a profound increase in demand for City services and has significantly added to the City's infrastructure and staffing needs. Consequently, this change will result in significant future operational and maintenance costs. The chart below illustrates the significant growth that has occurred since 1995. Growth Factors 1995 2024 Estimate % Change Population 20,497 33,321 63 Housing Units 6,300 10,969 74 Streets (miles) 150 207 38 Cul-de-sacs 155 368 137 Storm Sewer (miles) 18 87.2 384 Water Main (miles) 35 129.7 271 Sanitary Sewer (miles) 53 105.7 99 Parks (Number) 54 68 26 Developed Park Acreage 512 631 23 Trails (miles) 0 41 100 Developed Residential(acres) 7,750 9,558 23 Undeveloped Residential (acres) 14,616 12,734 (13) Fire/Medical Runs 625 1,884 201 Growth Factors 2000 2024 Estimate % Change Calls for Service—Police 9,588 13,299 39 Incident Reports 8,385 8,555 2 Note:Reference Year is 2000 due to database reporting changes. 13 Mayor, Councilmembers, Residents 2025 Adopted City Budget CAPITAL OUTLAY/IMPROVEMENTS Requests for capital outlay/improvements in the Adopted 2025 Budget are funded through a variety of sources including the General Fund and capital equipment/project levies, Special Revenue and Enterprise Funds, assessments and through the issuance of notes and bonds. Capital equipment and improvements in the Adopted 2025 Budget amounts to $19,250,000. Of that total amount, $235,000 will be funded by the General Fund levy, $684,500 will be funded by the capital equipment/project levy and reserves, $259,500 will be funded through facility maintenance reserve levy and reserves, $2,937,600 for intersection improvement through the Highway Safety Improvement Program (HSIP), $2,737,500 for road improvements funded by general obligation bonds and the remaining through other funding sources. The City's 2025 - 2029 Capital Improvement Plan(CIP)process was instrumental in producing the outcomes outlined in the 2025 Budget and should be referred to for a detailed analysis of significant capital outlays/improvements. For additional information on all the capital outlay / improvements in the City's 2025 — 2029 CIP, please see the appendix for a brief description of each item and/or go to the City's website at www.andovermn.gov and view the complete document located in the Finance Department section. Most replacements and improvements will reduce operating costs. Some new projects will enhance city services to residents with direct impact on operations. Notable adopted capital outlay/improvement expenditures are below followed by a list of improvement projects and their impact on operations. Parks Department- $200,000 is programmed for improvements to City parks that include updating and repairing play structures, and accessibility improvements to various parks and playgrounds. This will allow the City to replace three play structures that have become maintenance issues and/or no longer meet ADA requirements. Replacing playground structures only saves about $1,000 in miscellaneous replacement parts on an annual basis since they still need to get inspected routinely. These replacements are funded by the General Fund. $170,000 is planned for the installation of a new park and playground in the Fields of Winslow Cove development. Facility Management- $100,000 is budgeted for phase two of a city hall remodel updating the offices and cubicle areas. All funded by the Facility Maintenance Reserve levy and/or reserves. Fire - $335,000 is budgeted for the replacement of a rescue vehicle, funded through the Capital Equipment Reserve Capital Projects Fund. Community Center- $1,000,000 is budgeted for the replacement of the roof over the original fieldhouse and ice arena. This project is funded by the Community Center Special Revenue Fund. En ing eering - $800,000 is planned for trail along Coon Creek going east to the existing trail in the Shadowbrook development, $800,000 is budgeted for a trail on the south side of Crosstown Blvd from Xeon St to Prairie Road and $290,000 is planned for a sidewalk along the south 14 Mayor, Councilmembers, Residents 2025 Adopted City Budget side of Bunker Lake Blvd from Crosstown Blvd to Yukon St. All funded by the Trail & Transportation Capital Projects Fund along with grant and municipal state aid funds. PROJECT TITLE COST DESCRIPTION ANNUAL ANNUAL SAVINGS COST Replacement-Community Center $1,000,000 Full roof replacement(rubber membrane). City portion includes $1,000 $- Roof Ice Arena, Fieldhouse and a share of common space. Replacement-Kivac Cleaning $8,000 Replace the current Kivac cleaning machine that is used in the $ - $- Machine bleachers, locker rooms and player boxes. Replacement-Carpeting $15,000 Replacement of carpet within the Andover Community Center. $ - $- New Development Projects $210,000 New developments include the construction of sanitary sewer, $ - $5,000 water main, storm sewers and streets. (City share Pedestrian Trail Maintenance $67,000 This project provides maintenance such as crack filling and fog $1,000 $- scaling for the Cit 's pedestrian trails stem. New Pedestrian Trail and $1,890,000 Trail extensions along Coon Creek going east to the $ - $5,000 Sidewalk Segments Shadowbrook development and on the south side of Crosstown Blvd from Xeon St to Prairie Road; and sidewalk along the south side of Bunker Lake Blvd from Crosstown Blvd to Yukon St. Replacement-GPS Antenna $28,000 The GPS Antenna Survey Unit is needed to conduct engineering $ - $- -Survey Unit survey work for multiple projects throughout the year Annual Parking Lot $45,000 Yearly maintenance of the City parking lots. $1,000 $ - -Maintenance/Replacement City Hall Remodel $100,000 Phase 2 Remodel at CH-Update offices and cubicle areas. $ - $- Replacement- Emergency $35,000 Replace the emergency generator at Fire Station#2. $250 $- Generator FS #2 Replacement-Mini Split Unit $6,500 Replace mini split unit that cools the QCTV control room. $250 $- QCTV Replacement-Water Heater ASN $5,000 Replace gas hot water heater at Andover Station North building. $250 $- Replacement-Fan Coil Unit ASN $6,500 Replace existing Mitsubishi fan coil unit $ - $- Replacement- Garage Door $18,000 Replace garage door springs on all 3 overhead doors at Fire $ - $- -Springs FS#2 Station#2. Replacement- 800 MHz Radios $50,000 The current 800 MHz handheld and mobile radios used by the $200 $- Fire Department and Public Works are no longer manufactured. 15 Mayor, Councilmembers, Residents 2025 Adopted City Budget In addition,the service support for maintenance and repairs is no longer available. Replacement- Grass& Rescue $335,000 Replace unit#31, a 1991 Ford F350 4 x 4 grass vehicle with $5,000 $- Vehicle 24,063 miles. Replacement- Thermal Image $35,000 Replacement of current thermal image cameras (TICS). $ - $ - Cameras Replacement-HPE VMWare $20,000 Replace current GEN9 servers(Qty 2)with GEN servers. They $ - $- Server Hosts are used for hosting the VMWare environment. Replace/Repair Play Structures - $200,000 Replace existing playground equipment and repair fall zones to $1,000 $- Various Parks achieve ADA accessibility. Replace/Repair Major Park $35,000 Additional funding for major park improvements: fencing $ - $- Projects-Various Parks rebuilds, shelter replacements and parking lot reconstruction. Replacement- Sunshine Park $50,000 Reclaim and pave the south lot and replace miscellaneous $500 $- Parking Lot concrete curb sections at Sunshine Park. Annual Miscellaneous Park $25,000 For miscellaneous projects requested by the public, staff, City $ - $- Projects Council or the Park and Recreation Commission each year. Fields of Winslow Cove-New $170,000 Installation of a new park and playground in the Fields of $ - $2,000 Park Winslow Cove Development. Sunshine Park Basketball Court $65,000 Improvements to the existing asphalt basketball court. $ - $500 -Improvements Anoka County Dog Park $25,000 Install chain-link fence around dog park(2025). $ - $- Improvements Upgrade Controls at Sanitary Lift $10,000 Upgrade the sanitary lift station logic controls at lift stations#1, $500 $- Stations #5 #6, #8 and#9. Sanitary Sewer Lift Station Pump $100,000 Pump replacement at sanitary sewer lift stations. $500 $- Replacement Storm Sewer Improvements $73,000 Each year, areas of the City are identified where improvements $ - $- are required to maintain our storm sewers stem. Replacement- Sign Truck#08- $100,000 Replace unit#08-408, a 2008 Ford F450 sign truck with 96,195 $1,000 $- 408 miles. Replacement- One Ton Truck w/ $110,000 Replace unit#134, a 2004 F450 one-ton truck w/plow and $1,000 $- Plow#134 101,087 miles. Annual Street Crack Seal Project $160,000 Crack seal a portion of City streets. $2,000 - $- Annual Pavement Markings $98,000 The pavement striping for City streets is conducted annually. $ - $- 16 Mayor, Councilmembers, Residents 2025 Adopted City Budget Curb, Sidewalk and Pedestrian $120,000 Repair/replace damaged and failing concrete curb and gutter $750 $- -Rarnp Replacement throughout the City. Annual Street Reconstruction $3,650,000 The Street Reconstruction projects will consist of milling the $8,000 $- existing street surface and constructing a new asphalt surface. Municipal State Aid Routes/Mill $550,000 Mill 1.5" off the existing pavement and overlaying $8,000 $ - & Overlay approximately 1.5" of bituminous on the street. Street Mill&Overlay $985,000 The City of Andover has a street mill and overlay program to $8,000 $- prolong the life of the Cit 's roadway infrastructure Gravel Road Improvements $22,000 Additional gravel needed to maintain the traveling surface of the $ - $- dirt roads. Municipal State Aid Routes/New $540,000 The Street Reconstruction projects will consist of milling the $8,000 $- &Reconstruct existing street surface and constructing a new asphalt surface. Intersection Upgrades $4,000,000 Design/construct roundabouts for two locations. $ - $1,500 Street Full Depth Reclamation $2,831,000 Full Depth Reclamation- The entire thickness of asphalt and a $8,000 $- portion of the base material is uniformly pulverized and blended to provide strengthened stabilization of the roadway base prior to repaving. Pavement Rejuvenator $175,000 Application of a rejuvenating agent to newer pavement to $2,000 $- -Application extend its life. Bunker Lake Blvd Traffic Signal $750,000 Anoka County Highway Department is making improvements to $ - $- Improvements traffic signals along Bunker Lake Blvd from Jay Street to Rose Street. Replacement-Residential Meters $100,000 Replace older meters. $500 $- Water Main Gate Valve $50,000 When reconstructing streets, gate valves are inspected and $ - $- Rehabilitation replaced if needed. Rehabilitation of Wells $140,000 The motor,pump and column pipe are taken out for inspection $1,000 $- and worn parts are replaced. The well is televised to determine the depth and condition WTP High Service Pump $75,000 Service the high service motors and pumps in the WTP. $1,000 $- Maintenance Replacement-WTP Valve $55,000 Replacement of 6- 24" Backwash Valve Actuators. $500 $- Actuators Security Cameras-Water System $12,000 Add security cameras to monitor the property at towers and well $ - $500 houses. --Replacement-WTP Flow Meters $55,000 Replace flow meters for influent and effluent water at the WTP. $500 $- 17 Mayor, Councilmembers, Residents 2025 Adopted City Budget Replacement- 2003 Chevrolet S- $70,000 Replacement of unit 477, a 2003 Chevrolet 5-10 with 88,714 $500 $- 10 477 miles. New-Backup Generator at Well $165,000 Install a backup generator at well#9. $ - $500 #9 New-Asphalt Patch Trailer $30,000 Purchase a 3-yard capacity heated asphalt trailer with a $ - $500 hydraulic dump. Replacement- WTP SCADA $17,000 The computer and software that runs the operations of the water $ - $- -System treatment plant is outdated and the software is now unsu orted Fire Hydrant Painting $33,000 Sandblast and repaint the city's fire hydrants $ - $- TOTAL $19,520,000 FUND BALANCE The City adopts fund balance goals to meet short and long-term needs. Fund balance goals are established to provide for cash flow needs, capital purchases, emergency contingencies and other specific needs. The General Fund is projected to use $499,608 of the fund balance to fund operations in 2025. The work done by staff relative to the 2024 revenue and expenditure estimates has achieved the Council's 2025 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 50% of planned 2025 General Fund expenditures available from the 2024 budget (the targeted fund balance is approximately $7,859,077). The estimates are also necessary to preserve the following emergency reserve fund balances for core services: ■ Snow Emergency ($I OOK) - salt and sand needed for an abnormal snowfall season ■ Public Safety($1OOK) - police, fire, and civil defense unexpected costs ■ Facility Management($1 OOK) -roofing, HVAC, and emergency facility repairs ■ Information Technology($1OOK) - phone system and network server emergencies ■ Economic Development($150K)—TIF Management Fee Migration ■ Fiscal Disparities Fluctuation($300K)—changes in calculation In the Special Revenue Funds, the Economic Development Authority (EDA) Fund is projected to decrease $91,766 largely due to the reduced administration fees for the TIF districts and the continuation of the Home Improvement Program for qualifying residents. Staffing and expenditures will be migrated over to the General Fund over time. The Community Center is budgeted to decrease$999,127 as major maintenance projects are starting to accumulate including a partial roof replacement of$1,000,000. 18 Mayor, Councilmembers, Residents 2025 Adopted City Budget The Debt Service Funds are projected to increase by $1,515,179 in 2025 due to the timing of when levies are collected and when the debt service payments are made. The increase in fund balance is primarily the 2024A G.O. Street Reconstruction and Equipment bonds. In the Capital Projects Funds, the Water Trunk and Sewer Trunk Funds are increasing $233,601 and$344,960 respectively as funds are being set aside for future trunk replacements. The Road and Bridge Fund will decrease by$420,879 in 2025 due to the advancement of street reconstruction projects to get ahead of the deterioration of roadways. The Park Dedication Projects Fund is decreasing $302,132 as the City continues to make improvements to the park system with the construction of a new park in the Fields of Winslow Cove development area. The Trail & Sunshine Park basketball court improvements. Trail and Transportation Fund is decreasing $1,324,025 due to the extension of a trail along Coon Creek going east to the Shadowbrook development and on the south side of Crosstown Blvd from Xeon St to Prairie Road; and a sidewalk along the south side of Bunker Lake Blvd from Crosstown Blvd to Yukon St. The Capital Equipment Reserve Fund is decreasing by $384,500 as the City spends down the 2023 Public Safety Aid funds on fire-related equipment replacements as well as replacements in other departments of the City. The 2024A G.O. Equipment Certificate is projected to be spent in 2025 ($1,073,807). The Tax Increment Projects Fund is decreasing($117,126) as new redevelopment/economic strategies take place. 2024A G.O. Street Reconstruction Bonds Fund are planned to be spent down with in the next two years (2025 —2026). COMMUNITY VISION & GOALS While each budget year appears to only be dealing with the task at hand, the City of Andover, in addition to adopting each year's budget development guidelines, does keep in mind throughout the process the community's slogan, vision statement and short- and long-term organizational goals that are meant to say who and what the City of Andover is. On May 25, 2023, and June 8, 2023, the Andover City Council and Staff Leadership Team convened work sessions with a Facilitator for the purpose of updating its long-term vision, organizational values, external values, and short-term goals. The outcome of those sessions was summarized, and the Council adopted the updated "City of Andover Strategic Plan" at the June 20, 2023, City Council meeting. City departments have integrated the strategic plan direction into department work plans and budgets. The city's adopted slogan is "A Safe, Vibrant Community," and the vision statement is "Andover is a safe, healthy community that strives for excellence in quality of life for its citizens and businesses through recreational opportunity, quiet neighborhoods, civic involvement, strategic partnerships, fiscal responsibility, and environmental stewardship." Long-Term Organizational Values Excellence and quality in the delivery of services. 19 Mayor, Councilmembers, Residents 2025 Adopted City Budget The City of Andover exists to provide quality services to the public in a professional and cost-effective manner. • Fiscal Responsibility The City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens and businesses are to have confidence in government. • Ethics and Integrity The City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. • Treating our citizens and businesses as our customer The City of Andover believes that its citizens and businesses are its customers and, as such, should be treated with courtesy, respect, and integrity. • Open and honest communication The City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. • Prioritizing people The City of Andover believes that talented and well-supported officials and employees operating in a strong organizational culture provides stability, creativity, and excellence in delivery of service. • Maintaining organizational flexibility and adaptability The City of Andover believes that organizational flexibility and adaptability are key to meeting the changing and evolving needs of the community. Long-Term External Values • Establish and maintain a common community identity. 20 Mayor, Councilmembers, Residents 2025 Adopted City Budget • Provide city services that are accessible and lead to a healthy community. • Be a desirable place to live. • Enhance communication with the public and support processes that involve citizen engagement. • Develop and update the City's capital improvement program. • Broaden and preserve the City's tax base. • Balance and prioritize provision of city services with available resources. • Respect the environment. Top Priority Short-Term Goals • Develop and implement succession plans, identifying and establishing appropriate depth within each department and mentoring employees to gain organizational capacity. • Implement actions related to staff retention and attraction in order to keep the City market competitive(compensation, benefits, etc.). • Evaluate staffing and level of service for Fire, EMS, and Sheriff's Office to provide effective fire and rescue response. • Review and update street capital improvement plan, including funding and implementation. • Prioritize the timely replacement of equipment and commitment to necessary maintenance of equipment and municipal facilities. • Explore, identify gaps, and strengthen critical infrastructure. • Develop and implement additional youth activity programming at the Andover Community Center. • Continue to enter into collaborative agreements and partnerships when mutually beneficial. 21 Mayor, Councilmembers, Residents 2025 Adopted City Budget Secondary, Opportunity Shoit-Term Goals • Develop community activities to help strengthen a common community identity. • Accomplish the development of a Master Campus Plan. • Support activities to encourage business growth. • Encourage local resident entrepreneurship. • Evaluate the process of extending water within the MUSA. LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible to ensure the stability of the City's basic services. Considering past state aid reductions and previous years levy limits imposed by the state legislature and the current sporadic onset of levy limits, fiscal strategies will need to be constantly monitored to ensure a balanced approach in providing enough revenues to fund City services as follows: * Employing a strategy aimed at reducing the City's reliance on the property tax levy to fund basic City services through "sustainable"revenue sources such as special revenues, user fees and fee-for-service transactions. ✓ The City tax rate will increase in 2025 when applied to the City's growing taxable market values. City services will continue to be evaluated in terms of identifying all relevant funding sources to underwrite specific service expenditures, promoting alternatives to traditional funding methodologies, operational efficiencies, and encouraging public-private partnerships in service delivery systems. * The use of an appropriate cost accounting structure that will lead to the creation of individual cost centers for all City department activities to accurately reflect the true cost of providing specific services. ✓ The City employs a cost accounting system that is department specific which attempts to accurately reflect service delivery costs at the department and division levels. By including all supplemental services as they relate to personnel, charges and services, supplies and capital outlay will further distinguish the total costs of the service provided. The City can analyze these costs at the sub-category detail levels in support of overall policy goals. 22 Mayor, Councilmembers, Residents 2025 Adopted City Budget ♦ The development of work performance goals for each department to ascertain and measure how each operating division contributes to the City's overall public service mission. ✓ Each department is responsible for identifying relevant performance data to allow for an independent analysis of specific service outcomes. Data is reviewed to provide the Council and public with a better understanding of the operational demands, resource inputs and performance outcomes associated with a specific service delivery system. ♦ The development of long-term financial models that identify anticipated trends in community growth and financial resources, designate appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. ✓ The City continually maintains various financial models to determine the long-term impacts of present-day expenditure and financing decisions.Fiscal assumptions are based upon a set of financial data including growth factors, tax capacity valuations,per capita spending and debt ratios. The financial models are used as part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. ♦ The aggressive and appropriate investment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. ✓ Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates ofdeposit, municipal bonds,federal agencies and corporate paper and are designed to maximize municipal investment income. Long-term investing is designed to achieve the best yield in the current market,following a strategy that secures income streams at a higher rate of return for a longer period of time. ♦ Greater reliance on technology to enhance employee productivity in all areas of City operations and improve customer communications. ✓ The City has taken steps to invest additional time and energy on labor saving technology, such as new software, enhanced programming and optical imaging paper files. Staff implemented an optical imaging solution that enabled the City to reduce storage areas previously dedicated to paper files and provide a more economical and efficient data retrieval system. In addition, the City implemented financial management software to improve reporting and operating efficiencies. Both implementations have allowed the City to reduce staffing due to the increased efficiencies with each new system. 23 Mayor, Councilmembers, Residents 2025 Adopted City Budget ♦ The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended period of time to ensure that current and future taxpayers share equally in underwriting the cost of significant public expenditures. ✓ The City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existing and future taxpayers share equally in the cost. In addition, the City has established a separate capital projects levy to underwrite the cost of selected capital projects and equipment and to avoid a fiscal environment based on reactive tax and spend policies. The five-year Capital Improvement planning process is critical in achieving these results. ♦ Involving all employees in the process of re-engineering the work environment by encouraging cross-training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. ✓ City staff are encouraged to identify work practice issues that are inefficient or overly bureaucratic. The management team is committed to involving their employees and fostering an environment that challenges the status quo of City operations. ♦ Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment,jointly purchase equipment and develop strategies to deal with local issues using a regional approach. ✓ The City has established several equipment and service delivery sharing arrangements with neighboring communities and has several Joint powers agreements in place on a variety of local and regional issues in public safety, assessment services, telecommunications, public access television and wastewater service initiatives. EXECUTIVE SUMMARY The budget, as presented,reflects Council's direction and staff commitment to achieve a cost-effective,efficient and high-quality service delivery model. The 2025 Adopted Budget reflects the City's commitment to live within its means and ensure that tax dollars are wisely managed and expended in as prudent a manner possible to achieve high-quality service outcomes. It is interesting to note that the City of Andover continues to maintain one of the lower tax rates in Anoka County, as well as within the entire metropolitan area. City spending per capita continues to rank in the bottom half when compared to similar cities. 24 Mayor, Councilmembers, Residents 2025 Adopted City Budget Budgetary Process Guiding the City budget process were Council policy guidelines that were described earlier in this message. The budget process was approached by employing strategies associated with extending the useful life of existing equipment; the utilization of cost center accounting that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; and purchasing new equipment and introducing new technologies that allow staff to work more efficiently and effectively. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in City operations. The budget process included the opportunity for all department heads and supervisors to actively participate.Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the same framework in developing a budget that accurately identifies operational needs, promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. To meet these growing challenges, the City must continually evaluate new ways and methods of conducting business in a more economical, competitive and cost-effective manner, while keeping the quality of City services high and meeting the reasonable service expectations of the community. The budget process incorporates a management vision supported through: • increased utilization, understanding and promotion of technology in the delivery of public services; • emphasis on long-term strategic planning to appropriately identify, allocate and effectively utilize resources to meet future service needs; • greater participation, accountability and flexibility in the work force that will allow for the development of innovative responses to the increased demand for cost-effective services; • the need to focus on developing an alternate framework of special revenues and user fees as alternate funding mechanisms to gradually reduce the City's reliance on tax levies by recovering service costs from the appropriate users of the service; • the recognition that the City should work to assist the community in meeting challenges as a partner and not as the sole provider; and 25 Mayor, Councilmembers, Residents 2025 Adopted City Budget • a strong voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to minimize misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The 2025 Adopted Budget is the product of the collective efforts of the management team and their respective staff. They have worked diligently to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognition is appropriate with respect to the involvement of Lee Brezinka, Finance Manager and Finance staff in generating reliable financial data in which a sound and valid budget document was produced. The entire management team should be recognized for their diligent efforts in preparing a budget that meets the needs of this growing community yet recognizes the limited nature of financial resources. The City Council should be recognized for their frugal use of municipal resources and continual efforts to provide needed services to the residents they represent and serve. I am appreciative of the commitment, good judgment and expertise that each member of the Council has contributed to the budget process. Respectfully submitted, Sarah Cotton City Administrator 26 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES.NO.R127-24 A RESOLUTION ADOPTING THE CITY OF ANDOVER 2025 BUDGET AND 2025 PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR. WHEREAS,the preparation and adoption of budgets is recognized as sound financial practice; and WHEREAS,the City of Andover receives significant financial support from its residents through the payment of property taxes; and WHEREAS,the City of Andover has the responsibility to appropriately and efficiently manage the public's funds; and WHEREAS,Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to December 28,2024; and WHEREAS,Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 28,2024. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2025 City of Andover Budget and the 2025 property tax levy totaling$20,404,084 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2025 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 15,218,547 General Fund $ 15,718,155 Special Revenue Funds 2,517,718 Special Revenue Funds 3,634,168 Debt Service Funds 5,735,441 Debt Service Funds 4,220,262 Capital Projects Funds 12,523,306 Capital Projects Funds 19,266,214 Enterprise Funds 7,007,532 Enterprise Funds 6,835,691 Internal Service Funds 1,969,601 Internal Service Funds 1,919,851 Total $ 44,972,145 Total $ 51,594,341 Adopted by the City of Andover this 3rd day of December 2024. CITY OF ANDOVER r " Sheri.Buk ''a- _ayr ATTEST: Cl4(AUi t CA,(oA: Michelle Harmer—City Clerk 27 CITY OF AN OVE , MINNESOTA Attachment A 2025 Property Tax Levy 2025 Levy General Fund Levy General Operations $ 11,908,182 Community Center Operations 155,000 Park Repair/Replacement Items 235,000 Total General Fund 12,298,182 Debt Service Funds Levy 2012C Taxable G.O.Abatement Bonds 969,824 2018A G.O.Capital Irnprovement Plan Bonds 617,257 2019A Taxable G.O.Abatement Bonds 1,018,100 2021A G.O.Equipment Certificate 176,715 2021A C.O. Street Reconstruction Bonds 649,138 2024 G.O.Equipment Certificate 450,000 2025 G.O. Street Reconstruction Bonds 1,000,000 Total Debt Service 4,881,034 Other Levies Capital Projects Levy Capital Equipment/Project 300,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road&Bridge 2,400,000 Pedestrian Trail Maintenance 114,868 Lower Rum River Watershed 40,000 Total Other 3,224,868 Gross City Levy $ 20,404,084 28 STATE OF MINNESOTA) COUNTY OF ANOKA ) CITY OF ANDOVER ) 1,the undersigned,being the duly qualified and acting City Clerk of the City of Andover,Minnesota, do hereby certify that 1 have carefully compared the attached Resolution No. R127-24 adopting the City of Andover 2025 Budget and 2025 Property Tax Levy with the original record thereof preserved in my office, and have found the same to be true and correct transcript of the whole thereof. IN TESTIMONY WHEREOF,I have hereunto subscribed my hand this 3rd day of December 2024. Michelle Hartner—City Clerk 29 Long-Term Organizational Values 1. EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES The City of Andover exists to provide quality services to the public in a professional and cost-effective manner. 2. FISCAL RESPONSIBILITY The City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens and businesses are to have confidence in government. 3. ETHICS AND INTEGRITY The City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. 4. TREATING THE CITIZENS AND BUSINESSES AS OUR CUSTOMER The City of Andover believes that the citizens and businesses are its customers and, as such, should be treated with courtesy, respect, and integrity. 5. OPEN AND HONEST COMMUNICATION The City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. 6. PRIORITIZING PEOPLE The City of Andover believes that talented and well-supported officials and employees operating in a strong organizational culture provides stability, creativity, and excellence in delivery of service. 7. MAINTAINING ORGANIZATIONAL FLEXIBILITY AND ADAPTABILITY The City of Andover believes that organizational flexibility and adaptability are key to meeting the changing needs of the community. Highest Priority External Values Goal #1 Establish and maintain a common community identity. Goal #2 Provide city services that are accessible and lead to a healthy community. Goal #3 Be a desirable place to live. 30 Goal #4 Enhance communication with the public and support processes that involve citizen engagement. Goal #5 Develop and update the City's capital improvement program. Goal #6 Broaden and preserve the City's tax base. Goal #7 Balance and prioritize provision of city services with available resources. Goal #8 Respect the environment. Budget Development Process The Budget Process Andover City ordinance 216, Section 2., Major Areas of Accountability requires the City Administrator to submit an annual budget to the City Council,which accurately reflects the financial needs of the City organization.Additionally, state law requires that the City Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by September 30t" Beginning in levy year 2002, the State of Minnesota is allowing certain governmental units exemption from the public hearing and publication requirement if its total proposed property tax levy does not exceed its previous year final property tax levy by more than the percentage increase in the implicit price deflator. The City of Andover did not fall under this exemption and held a meeting pertaining to the 2025 Proposed Operating Budget and Proposed Tax Levy on Tuesday, September 3, 2024 at 7:00 p.m. in the City Council Chambers. The date was advertised in the September City Newsletter, on public TV, and in the local paper. Final City Council action adopting the City Budget and Property Tax Levy occurred on December 3, 2024. The adopted 2025 City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 30, 2024. The budget is prepared on an annual basis, and follows the calendar year, January 1 st to December 31st. Policies are set by the City Council in one of two ways: 1) Policies are initiated by actions of the City Council at its regular council meetings through adoption of ordinances, resolutions, or motions. 2) Policies are also initiated, studied, and reviewed at special work sessions called for that purpose. The City Administrator and City staff address the Council's concerns in the preparation of the budget and evaluate the financial costs of the implementation of these policies and include them in the budget where economically feasible. In summary, policy issues are identified by the City Council, evaluated, and costed out by the Administrator and management team, and returned to Council for appropriations if necessary. If no appropriation is necessary, the new policy is implemented as soon as practical by the Administrator. Each activity manager is given a monthly financial report of expenditures compared to the adopted budget. Expenditures related to City activities may not exceed appropriations without approval of the City Council. 31 Below is the 2025 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council. CITY OF ANDOVER 2025 Budget Development Calendar Date Activity Responsibility March 26, 2024 Council Workshop to discuss budget guidelines. City Council / Staff May 7, 2024 Council adopts 2025 Budget Development Guidelines. City Council / Staff May 28, 2024 Council budget progress report distributed and Council budget discussion. Council / Staff July 11 — 12, 2024 2025 Budget Decision packages prioritized and finalized. Admin / Mgmt Team July 23, 2024 Council budget progress distributed. Receives 2025 Proposed Budget. City Council / Staff August 27, 2024 City Council follow-up workshop for review of 2025 Proposed Budget. City Council / Staff August 27, 2024 City Council preview of Proposed 2025 Tax Levy Presentation. City Council / Staff September 1, 2024 State Department of Revenue (DOR)to certify levy limits for 2025. DOR September 3, 2024 (Req.) City to adopt proposed 2025 tax levy and select public hearing dates. City Council City Council Budget discussion—focus on Special Revenue Funds, Debt September 24, 2024 Service Funds, Capital Projects Funds, Emterprise Funds & Internal City Council / Staff Service Funds. September 30, 2024 (Req.) Proposed 2025 tax levy must be certified to County. Finance September 30, 2024 (Req.) City to file proposed 2025 special levies with DOR Finance/ DOR October 22, 2024 City Council Budget discussion—focus on DSF & CPF. City Council / Staff November 1 — 11, 2024* County Auditor to mail parcel specific notices. County November 26, 2024 City Council preview of Public Hearing. City Council / Staff December 1 - 13, 2024* (Req.) City conducts Public Hearing during this time frame. City Council December 3, 2024 City of Andover Public hearing on 2025 Tax Levy and Operating Budget. City Council December 3, 2024 City Council adopts 2025 Tax Levy and Operating Budget. City Council December 30, 2024' (Req.) Deadline for staff to certify 2025 tax levy to State and County. Finance 32 Budgeting for City Operations The City is required to account for revenues and expenditures in accordance with generally accepted accounting principles. Because fund accounting is required for financial reporting, the appropriation budgets are organized and presented in like manner. The summary information section presents a summary of revenues and expenditures of each fund. A brief description of each fund type can be found at the beginning of each section. Basis of Accounting and Budgeting The financial reporting and budgeting systems of the City are organized on a fund basis. A fund is a fiscal and accounting entity with a self-balancing set of accounts. All funds in the budget were prepared using the following basis of accounting, which is consistent with the accounting methods used for financial reporting. Government Funds: All governmental funds are maintained on a modified accrual basis with revenues recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, except for principal and interest payments on long-term debt and capital expenditures which are recognized as expenditures when due. Governmental funds include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The City of Andover adopts a budget for every governmental fund. Proprietary Funds: Proprietary funds are maintained on an accrual basis. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period in which the liability is incurred. For accounting purposes, the payment of principal on long-term debt and the purchase of capital assets is reflected on the balance sheet as it is reflecting bonds payable and capital assets with an outflow of cash. Interest on long- term debt in these funds is reflected in the expenses for the period that the payments are covering. Capital items are depreciated over their useful life with the depreciation amounts included in the expenses. For budgeting purposes, the payment of principal and interest on long-term debt and the purchase of capital assets in the proprietary funds is reflected in the budgeted expenses as an outflow of resources to assist in the analysis of these funds when analyzing rate structures. Proprietary funds include Enterprise Funds and Internal Service Funds. The City of Andover currently has three enterprise funds and two internal service funds. The City of Andover has adopted the following accounting, auditing and financial reporting policy: Accounting, Auditing and Financial Reporting Policy 1. The City of Andover will establish and maintain a high standard of accounting practices. Accounting standards will conform to Generally Accepted Accounting Principles (GAAP)as outlined by the Governmental Accounting Standards Board (GASB). 2. At the end of each fiscal year, a Certified Public Accounting firm that will include issuing a financial opinion will conduct an audit of the City records and a management and compliance report on internal controls. 3. The City of Andover will maintain a strong internal audit function. 4. The City will maintain a fixed asset system to identify and protect all City assets. 5. The Finance Department will prepare monthly financial reports for internal management purposes. 33 6. The City Council delegates the authority to assign fund balance, as required for prudent fiscal management, to the City Administrator and Finance Director. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, 3) unassigned. 7. Annually, the Finance Department will prepare a comprehensive annual financial report. This report shall be made available to the elected officials, city management, bond-rating agencies, and the general public. 8. The City will annually submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA) to determine its eligibility to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Budget Monitoring and Amendments The Andover Financial Policies identifies an Operating Budget Policy which includes the process for monitoring and amending the budget, fund balance considerations and the capital improvement budget coordination, that policy is as follows: Operating Budget Policy 1. The formal budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. A. The City will attempt to maintain its present service level for priority and essential services subject to available revenues. New services will be considered for funding within available resources. B. The City of Andover will utilize a "bottom-up" resource allocation approach. Each department will have an opportunity to request personnel, goods, capital items and services needed to carry out its responsibilities in a timely manner. C. The resources to fund the budget will include all revenues reasonably anticipated from all sources and the unrestricted unassigned fund balance estimate to be carried forward at the beginning of the fiscal year. D. The City enterprise operations are to be self-supporting, including capital improvements and depreciation. Enterprise operations are to be reviewed annually for self-sufficiency. E. The City will utilize procedures that allow departments to integrate priorities and objectives into the budget requests. 2. The operating budget, authorizing expenditure of City monies, will be adopted annually by the City Council at the department level. Expenditures may not exceed the total for any department, within a fund, without the City Council's approval. The authority to make changes to the adopted City Budget during the operating year is as follows: A. City Council approval is required for all budget adjustments or transfers that will increase the department's adopted expenditure budget, or adjustments that are made to facilitate a department restructuring. 34 B. City Council approval is required for any budget adjustment that exceeds either$10,000 or 5% of a department's expenditure budget, except that adjustments under$10,000 may be approved as provided in C. & D. below. C. City Administrator's, or their designee when unavailable, approval is required for all budget adjustments or transfers made to personal services or capital outlay under$10,000 on a one-time basis. D. Budget adjustments and transfers among expenditure accounts may be authorized during the fiscal year by the City Administrator and the Finance Director if there is no effect on the department's gross expenditure budget and the adjustment is not to employee compensation. E. Under no circumstances should budget adjustments be split to avoid approval limits. 3. The City will budget to maintain fund balances at adequate levels to ensure that sufficient resources are available for current and future expenditures, whether planned or unforeseen. A. The City will budget to maintain an unassigned fund balance for each operating fund, to support operations until current tax revenues are received. Based upon the semi-annual collection of local taxes, each operating fund, relying on property tax related revenues,should maintain an unassigned fund balance at year-end necessary for approximately 6 months of the subsequent year's operation. B. The City will budget to maintain an unassigned fund balance available for contingencies of between 1 percent and 3 percent of budgeted expenditures for each operating fund in order to finance unforeseen items and events that occur during the course of the year. It is not necessary for each fund to hold its own contingency. The General Fund may hold contingencies for other funds when appropriate. C. All unencumbered appropriations and encumbered purchases less than $1,000 lapse at year-end. However, the appropriation authority for all major capital projects and capital assets carries forward automatically to the subsequent year. Appropriations for encumbered purchases in excess of $1,000, which are not budgeted in the ensuing year, may be transferred to the subsequent year with the approval of the City Administrator and Finance Director. The current year appropriation is reduced and the subsequent year appropriation is increased. 4. The City will maintain a budgetary control system to ensure adherence to the budget and will prepare regular reports, which compare actual revenues, and expenditures to budgeted amounts. 5. The City will coordinate development of the Capital Improvement Budget with the development of the annual operating budget. Each capital improvement project is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel required and additional operating expenses. 6. The capitalization threshold for assets of the City of Andover, as defined in the Fixed Asset Policy, applies to all budgets and purchases associated with the Capital Expenditure series of accounts. 7. Annually, the Finance Department will prepare an Annual Operating Budget report. This report will be made available to elected officials, City management, bond-rating agencies, and general public. 8. The City will annually submit its annual operating budget document to the GFOA to determine its eligibility to receive the GFOA's Distinguished Budget Presentation Award. 35 Determination o f Revenue Estimates The Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are arrived by studying relevant revenue history along with economic trends and indices when available. Discussion regarding specific revenue sources can be found in the summary information section of the budget. The Andover Financial Policies identifies a Revenue Policy that outlines the City's revenue philosophy and that policy is as follows: Revenue Policy 1. The City will attempt to maintain a diversified and stable revenue system to shelter it from short-run fluctuations in any single revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of economic downturns. 2. The City will follow an aggressive policy of collecting revenues. 3. The City will periodically review fees and charges in order to keep pace with the cost of providing the service or that percentage of the total cost deemed appropriate by the City, and will conduct a public hearing or adopt an ordinance, as required by law, prior to setting fees or charges. 4. The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax fees and charges. 5. The City will allocate Citywide revenues to funds, which provide services to the entire City. 6. All revenues, reasonably expected to be unexpended and unencumbered at the end of the year, will be anticipated as "available fund balance" in the budget of the following year. 7. The City will attempt to invest all cash holdings in accordance with the cash and investment policy and maximize those holdings with an effective payment policy. Capital Improvement Program Andover's Capital Improvement Program is intended to provide the City Council and staff with a process for identifying and prioritizing capital projects in order to coordinate the financing and timing of improvements, which maximizes the return to the public. The process will enable the City to evaluate long- term cost and benefits of projects being adopted for the coming year (2025) against those projects planned between 2026 and 2029. The Capital Improvement Program follows the following policy: Capital Improvement Policy 1. A Capital Improvements Plan (CIP) will be developed for a period of five years. As resources are available, the most current year of the CIP will be incorporated into the current year operating budget as the Capital Improvements Budget(CIB). The CIP will be reviewed and updated annually. Years two through five are for planning purposes only. 2. The City will maintain its physical assets in a manner, adequate to protect the City's capital investment and to minimize future maintenance and replacement costs. The City will provide for maintenance and replacement from current revenues where possible. 36 3. To be considered in the Capital Improvements Program, a project must have an estimated cost of at least $5,000 in one of the calendar years of the project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items that are operating expense (such as maintenance agreements, personal computer software upgrades, etc.)will not be considered within the CIP. 4. Capital projects, which duplicate other public and/or private service, will not be considered. 5. The City will identify the estimated costs and potential funding sources for each capital project prior to inclusion in the CIP. The operating costs to maintain capital projects shall be considered prior to the decision to undertake the capital projects. 6. Capital projects and/or capital asset purchases will receive a higher priority if they meet a majority of the following criteria: A. Mandatory project B. Maintenance project(approved replacement schedules) C. Improve efficiency D. Provide a new service E. Policy area project F. Broad extent of usage G. Length of expected useful life H. Positive effect on operation and maintenance costs I. Availability of county/state/federal grants J. Elimination of hazards (improves public safety) K. Prior commitments L. Replacement due to disaster or loss 7. The CIP is to be presented by the City Administrator and Management Team annually to the City Council for approval. Any substantive change to the Cl P after approval must be approved by the City Council. Debt Administration The City of Andover has adopted the following Debt Policy: 1. The following Debt Policy should be used to provide guidelines for debt decisions. There are no absolute rules or formulas in determining the level of City debt. Each situation requires a thorough review of the City's debt position, financial health and economic forecast. The limitations of this policy refer to City of Andover debt only(excludes EDA and HRA). 2. The City will maintain good communications with bond rating agencies and will try to improve or maintain its current AA+ bond rating so that the City's borrowing costs are minimized and access to credit is preserved. 3. The City will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency beyond the City's control or reasonable ability to forecast. 4. The City may use long-term debt financing when all of the following conditions exist: 37 A. When non-recurring capital improvements are desired, and B. When it can be determined that present and future citizens will receive a benefit from the improvement, and C. When the cost benefit of the improvement, including interest cost, is positive. 5. The issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. For purposes of this policy, current resources are defined as that portion of fund balance in excess of appropriate required reserves and designations. The City of Andover will not pledge indebtedness to outside agency financing, unless the benefit is for City of Andover residents. 6. The City of Andover will limit the amount of total net general obligation debt to no more than 3% of the estimated market value. (Minnesota Statutes limit on debt is 3% of the estimated market value). 7. The payback period of the bonds or notes will not exceed the estimated useful life of the capital asset constructed or purchased. 8. The City will conservatively project the revenue sources utilized to repay the debt(i.e., taxes for G.O. debt are levied at 105% of the required debt service). 9. Capital notes and leases may be used to finance equipment purchases anytime the total cost of the purchase exceeds $10,000, the useful life of the equipment is greater than five years, the financing rate is less than or equal to the current and projected investment rates, or the purchase is of a non-recurring nature (copy machines and information technology equipment). 10. The City will follow a policy of full disclosure on every Comprehensive Annual Financial Report and official statement. Investment Policy The City of Andover has adopted the following Investment Policy: 1. Scope—this policy applies to the investments of all financial assets of the City of Andover except investments of employees' investment retirement funds. 2. General Objectives—the primary objectives, in priority order, of investment activities shall be safety, liquidity and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity. 3. Standard of Care A. Prudence. The standard of prudence, meaning not for speculation and with consideration of the probable safety of the capital as well as the probable investment returns, shall be used by investment officials. B. Ethics and Conflicts of Interest. Employees involved in the investment process shall have no personal business activity that could conflict with the proper execution and management of the investment program or could impair their ability to make impartial decisions. 38 C. Delegation of Authority. Authority to manage the investment program is granted to the Finance Director who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy and applicable state statutes. 4. Safekeeping and Custody A. Authorized Financial Dealers and Institutions. A list will be maintained of financial institutions authorized to provide investment services. B. Internal Controls. The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. C. Delivery vs. Payment. All trades, where applicable, will be executed by delivery vs. payment (DVP)to ensure that securities are deposited in an eligible financial institution prior to the release of funds. 5. Suitable and Authorized Investments A. Investment Types. The following investments will be permitted by this policy and are those defined by state and local where applicable: • U.S. government obligations, U.S. government agency obligations and U.S. government instrumentality obligations which have a liquid market with a readily determinable market value; • Certificates of deposit and other evidences of deposit at financial institutions, bankers' acceptances, and commercial paper, rated in the highest tier(e.g., A-1, P-1, or F-1, or higher) by a nationally recognized rating agency; • Investment-grade obligations of state, local governments and public authorities; • Repurchase agreements whose underlying purchased securities consist of the investment types listed above. • Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar- denominated securities; and • Local government investment pools, either state-administered or through joint powers statutes and other intergovernmental agreement legislation. B. Collateral ization. Full collateral ization will be required on non-negotiable certificates of deposit. C. Repurchase Agreements. Repurchase agreements shall be consistent with GFOA Recommended Practices on Repurchase agreements. 6. Investment Parameters A. Diversification. Investments shall be diversified by security type and institution. B. Maximum Maturities. To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing, or having average lives, of more that five years from the date of purchase. 7. Reporting A. Methods. The Finance Director shall prepare an investment report, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made quarterly. B. Performance Standards. The investment portfolio will be managed in accordance with the parameters specified within this policy. C. Marking to Market. The market value of the portfolio shall be calculated at least quarterly. 39 8. Policy Considerations A. Exemption. Any investment currently held that does not meet the guidelines of this policy (originally adopted April 6, 1999) shall be exempted from the requirements of the policy. B. Amendments. This policy shall be reviewed as needed or requested by City Council. Distribution of Budget Information Copies of the proposed budget are typically available to the general public beginning the second week in August in the offices of the City Administrator and Finance Director. Notices of the public hearings are published in the City's official newspaper, the Anoka County Union, along with notices posted on public bulletin boards. Citizens are invited to provide written or oral comments at the public hearings. The County Property Records and Taxation Division is required to notify each property owner of the impact of the proposed tax levy upon each individual parcel of property along with the final budget hearing dates. Awards The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Andover for its annual budget for the fiscal year beginning January 1, 2024. This is the twenty-third consecutive time the City of Andover has received this award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 40 Revenue Pro'ect� ions As mentioned earlier, the Finance Department is responsible for compiling all revenue estimates contained in the budget. Estimates are determined by studying relevant revenue history along with economic trends and indices when available. City of Andover City of Andover Major Revenue Sources Comparison 2025 Revenue by Source Spec Assess Misc Rev MiscRev 5% 6% EM Prop Taxes 47% SpE 6Assess ir Intergov'I Rev Inte gov'I Rev 15% Inve .Incdrne Elm Tax I r crevnents Invest.Income 1% Charg s for Svc Tax Increments lllllllllllllllllllllllllllllllllllllllllllll lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll I 0% IIIIIIIIIIIIIIIIII�����111- P�op Taxes -$5.00 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 Millions Charges for Svc 2025 Budget 0 2024 Est 0 2023 Actual ® 2022 Actual 26% Following are individual graphs of the major revenue sources over the last few years. Included are brief descriptions of each source and explanations of any variances over the same time period. 41 Revenue Projections— Property Tax&Charges for Services ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 25 000 000 $20,000,000 10 000 000 5 000 000 0 2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Estimate 2025 Budget Property Tax Charges for Services General Property Taxes Property taxes are a revenue source in the General, Special Revenue, Debt Service and Capital Projects Funds. This revenue source is primarily used in the General Fund and is based on the availability of other revenue sources and the expenditure level necessary to conduct City business in accordance with Council policy and directives. The original goal for the 2025 budget for property taxes was a commitment to maintain the City Tax Rate in a manner consistent with the needs of the organization to ensure the long-term competitiveness, efficiency, staffing and capital requirements. The Council, by recognizing the impact of increasing market values and acknowledging community economic concerns, were able to establish an appropriate baseline of city services and a manageable debt service expense level. The general property tax revenue does increase 12.75% as compared to 2024. The focus of the 2025 Budget and Levy is to address inflationary items, capital replacements, an infusion of funds into the street improvement program, and address staff retention. The General Fund relies heavily on property taxes and as the City gets closer to full buildout it's expected the future additions to the tax base will help offset increases needed to operate the City. Development will be steady with the current availability of land. Charges for Services Charges for services comes from a variety of sources in the General and Special Revenue Funds; such as project engineering and inspection services to residential and commercial developers, drainage and mapping services, ice, turf and field house rentals, plat reviews and other miscellaneous charges for dedicated use of city staff. Over the past few years, the City has continued to grow and this is expected to continue in 2025 and beyond. In the Enterprise Funds, charges for services come from water and sewer usage charges and a storm water utility charge. The water charges are determined by a water rate study, the sewer charges by a sewer rate study and the storm water utility charges are based on the amount of funding needed to comply with federal storm water requirements, each are reviewed annually to cover all expenses. In the Internal Services Fund, the charges for services represent department charges for the maintenance of city equipment and cost of commercial and workers comp insurance coverage. The largest increase is in the Enterprise Funds as the costs of providing these utilities continue to rise. 42 Revenue Projections—Tax Increments and Intergovernmental Revenue ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 10 000 000 9 000 000 8 000 000 �mre $7,000,000 6 000 000 5 000 000 4 000 000 $3,000,000 2 000 000 1 000 000 0 2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Estimate 2025 Budget Tax Increments Intergovernmental Revenue Tax Increments Tax Increments are a revenue source in the Capital Projects Funds. Tax increment is used to pay for debt service on tax increment bond issues and expenses related to economic development and redevelopment within tax increment development districts. Annually, an extensive analysis is done reviewing the debt service requirements and the redevelopment projects contemplated in the capital improvement plan. Of the two remaining tax increment districts, one has a pay-as-you-go note associated with it and the other is reimbursing the district for expenditures already made that decertified in 2024. Looking forward, the City will create tax increment districts only when a significant project meeting a required "but/for"test is deemed to achieve City goals. Intergovernmental This revenue source is present in the General, Special Revenue, Debt Service and Capital Projects Funds. The intergovernmental represents the remaining state aid distributions of State Highway aid and State Police and Fire aid. This revenue source also represents grants applied for and awarded from other government agencies (federal, state, school, or county) such as Community Development Block Grants and DNR grants. In 2020, the City was able to get an advance on Municipal State Aid (MSA) construction allotment funds for projects already in progress. Any unused MSA allotment is carried over and drawn upon as eligible projects are constructed in 2021. Also in 2020, the City received $2,465,736 from the CARES Act and is expecting to spend the ARP Act funds ($3.5mil) in 2022, 2023 and 2024. 2024 also includes$6,100,000 for a water main installation in the Red Oaks Manor development area as identified by the MPCA and funded by the State of Minnesota. Generally, intergovernmental revenue is dependent on the State and/or Federal government providing one-time money, it's rare to see new consistent revenue sources in this category. 43 Revenue Projections—Investment Income and Special Assessments ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 3 500 000 3 000 000 $2,500,000 $1,500,000iiiiiii $1,000,000 $500,000 $0 m 2019 Actual 2020 Actual 2021 Ac I 1 2022 Act 1 2023 Actual 2024 Estimate 2025 Budget 1 000 000 - 1 500 000 2 000 000 �^°°°°°°°°°°°°°°°°°°°^Investment Income Special Assessments Investment Income This revenue source is in all funds. Investment income is interest earned on investments and is allocated to funds based on average cash balances within each fund. Revenues from this source are dependent on interest rates and cash balances available for investment. In 2021 and 2022, the City reported an overall loss of$89,313 and $1,425,523 respectfully, which was primarily due to lower interest rates and a change in market value reported for yearend purposes. In 2023, the market rebounded, and interest rates remained higher than the previous two years. These swings are normal but can be more pronounced during periods of significant changes to interest rates. Special Assessments Special assessments are a revenue source in the Debt Service and Capital Projects Funds. Special Assessments are used for the payment of bonds for related capital projects and for reimbursing the City's Capital Projects Funds for projects financed internally. The 2025 budget is based on special assessment payment schedules and a review of residential development within the City of Andover. Special Assessment revenue fluctuates based on the type and cost of street reconstruction projects being assessable to benefiting properties and the timing of when those assessments are paid. It also depends on whether residential development is done as a developer-installed project(developer is paying all the expenses)or as a city-installed project(the city is funding the project through bonds or the PIR fund and assessing costs back to the property). In late 2021, the City issued street reconstruction bonds for projects in 2022 and 2023; a portion of those projects will be assessed to benefiting properties. In late 2024, the City issued street reconstruction bonds again for projects in 2025 and 2026; a portion of those projects will be assessed to benefiting properties as well. 44 Revenue Projections— Miscellaneous Revenue ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 5 000 000 $4 ......... .................................................................................................................................................................................................................. 500000 so off�'�Illplpl4lllp $4,000,000 I I I I I ? I I � I I I � I I � I I I I ( I I � I $3,500,000 of off wlillllllllllllllllp $3,000,000 f// ,��, �0��,o�" ppMplplplplp II I ................................................................ .....................................................................................................I............................................................................................................................................................ $2,500,000 ��of��( ,��rGG/4 pplhplplplplpl ........................................"09!@�!!lVuouuu ......................................................................... ............................................................................................................................................... S2,000,000 //// ���� Illly .,..,,„ wuuunuuunuumnnnnmuumiiiiiimu.....iiixrrr 1lYlBNNWIOImuniowmiilGtii(r,r r�imiiiiiiiiiiiiii mmm00000000000miiiiiiiiiiiiiiiiiiiirrrrrrr/ ���fl rod GrG IIIIIIIIIII (iff6(n(iiiiiiiiiimiiiiiii m 0 m�llll°aOBiiiii ....................................................................................................................................................ouiiiuiioojojipojojo�iiipupppmuo�lllllllllllllluuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuouuuuumouuuuuuuuuuuuumollllllllllllllplppmugmuuuuumiiiiiiiiiiiip�pumoumuumiouuuouuuy..................................................................✓v.................................................................................. ,.lI.........Uu ................................................................................................................. $1,500,000 °r��, ,rrrr„rrrrr rr I r, I o n I ouuuuuuuuiVPu u rr i n uN�o r r r, r, 0 n u r n r m r 0 n r,r, �r rr �um�uuuuuuuuuuuuuuuuuuuuuuuuuumii°°°°°111°uum uuuuuuuuuuuuum(OIg1UlAp� ' ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................11u, $5 00,000 0 r...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Estimate 2025 Budget License & Permits Fines User Charges °°°°°°°°°°°°°°°°°�°°Miscellaneous Revenue Miscellaneous Revenues Licenses and Permits—This revenue source is found only in the General Fund. These revenues are based on City determined license rates; State regulated rates and the Uniform Building Code. The 2025 budgeted amount is based on 50 new single-family residential homes using a building valuation of$250,000 each. Fines—Fines are a revenue source in the General Fund only. Fines are collected through the State Court System and are remitted to the City monthly. Fine revenue remains consistent from year to year. User Charges—This revenue source is found in the Capital Projects Funds. These charges are fees paid under development agreements when new construction for residential and commercial projects are initiated. 2022 includes fees associated with a 150-unit apartment complex. The 2025 budgeted amount brings it back to a normal level and is based development activity. Miscellaneous— Miscellaneous revenues are revenues that do not fit in any other revenue type. Included in this are payments from the YMCA for lease payments ($635,000—based on a 30-year lease agreement)and reimbursements for actual common space charges and natural gas.This also includes rental fees for wireless antennas. In 2019, the Community Center construction project received a large donation ($500,000) and reimbursement for the expansion of the parking lot. 45 CITY OF ANDOVER 2025 Budget Summary By Fund Type City of Andover-Budgeted Funds Total Revenues: $44,972,145 Total Expenditures: $51,594,341 Governmental Funds Proprietary Funds __T T General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds Enterprise Funds Internal Service Funds Revenues: $15,218,547 Revenues: $2,517,718 Revenues: $5,735,441 Revenues: $12,523,306 Revenues: $7,007,532 Revenues: $1,969,601 Expenditures: $15,718,155 Expenditures: $3,634,168 Expenditures: $4,220,262 Expenditures: $19,266,214 Expenditures: $6,835,691 Expenditures: $1,919,851 General Government EDA G.O.CIP Bonds Water Trunk Sewer Fund Central Equipment/Maint. Drainage&Mapping G.O.Street Recon Bonds Sewer Trunk Public Safety LRRWMO G.O.Equip Certificates Road&Bridge Water Fund Risk Management Forestry G.O.Referendum Bonds Trail&Transportation Public Works ROW Mgmt/Utility G.O.Abatement Bonds Cap Equip Reserve Storm Sewer Fund Construction Seal Coating Tax Increment Other Community Center Park Dedication Local Affordable Housing Aid PIR Projects Charitable Gambling Building CARES Act/ARPA Funding CIP/Street Recon Bond Projects Equipment Certificates Fund Definitions General Fund-accounts for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government,public safety,public works,and other. Special Revenue Funds-accounts for revenue sources that finance particular functions and projects. Debt Service Funds-accounts for the accumulation of resources for,and the payment of general long-term debt. Capital Projects Funds-accounts for the acquisition or construction of major capital facilities financed mainly with governmental fund sources,general obligation debt,special assessments,and other. Enterprise Funds-accounts for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. Internal Service Funds-accounts for goods and services that are provided to other City departments,or to other governments,on a cost reimbursement basis. 46 CITY OF ANDOVER 2025 Budget Summary Revenues and Expenditures Fund Summary Actual Adopted Estimate Budget 2023 2024 2024 2025 Fund Balance/Net Assets,January 1 $ 67,251,291 $ 70,584,814 $ 70,584,814 $ 72,914,462 Revenues&Other Sources General 14,804,988 14,506,539 14,749,691 15,218,547 Special Revenue 3,472,475 2,769,968 3,084,593 2,517,718 Debt Service 4,725,197 4,737,010 4,744,310 5,735,441 Capital Projects 10,630,622 14,758,797 24,486,104 12,523,306 Enterprise 8,225,111 6,878,484 6,878,484 7,007,532 Internal Service 2,134,866 1,889,225 1,889,225 1,969,601 Total Revenues&Other Sources: 43,993,259 45,540,023 55,832,407 44,972,145 Total Available: 111,244,550 116,124,837 126,417,221 117,886,607 Expenditures&Other Uses General 13,219,879 14,975,613 15,254,818 15,718,155 Special Revenue 3,129,622 2,953,603 2,921,891 3,634,168 Debt Service 4,397,157 4,470,420 4,928,575 4,220,262 Capital Projects 10,817,874 21,848,120 20,071,940 19,266,214 Enterprise 7,399,867 8,315,168 8,494,568 6,835,691 Internal Service 1,695,337 1,839,467 1,830,967 1,919,851 Total Expenditures&Other Uses: 40,659,736 54,402,391 53,502,759 51,594,341 Fund Balance/Net Assets, December 31 $ 70,584,814 $ 61,722,446 $ 72,914,462 $ 66,292,266 Change in Fund Balance $ 3,333,523 $ (8,862,368) $ 2,329,648 $ (6,622,196) 4.96% -12.56% 3.30% -9.08% 47 CITY OF ANDOVER 2025 Budget Summary Revenues and Expenditures-All Funds Actual Budget Estimate Budget 2023 2024 2024 2025 Fund Balance/Net Assets,January 1 $ 67,251,291 $ 70,584,814 $ 70,584,814 $ 72,914,462 Revenues General Property Taxes 16,955,120 18,142,274 18,142,274 20,449,084 Tax Increments 100,476 100,475 100,582 70,000 Special Assessments 1,114,953 1,301,000 1,453,122 2,187,000 Licenses and Permits 854,739 617,600 722,175 668,850 Intergovernmental 5,067,131 8,877,197 8,922,090 6,717,278 Charges for Services 12,337,029 10,520,592 10,775,202 11,087,369 Fines 70,683 50,500 50,500 50,500 Investment Income 2,937,476 247,400 521,400 258,250 User Charges 805,958 409,490 1,680,355 260,685 Meters 36,544 13,000 13,000 13,000 Miscellaneous 1,399,979 1,349,868 1,333,875 1,409,268 Total Revenues: 41,680,088 41,629,396 43,714,575 43,171,284 Other Financing Sources Operating Transfers In 2,211,317 2,330,627 2,879,232 1,800,861 Bond Proceeds - 1,580,000 9,205,000 - Proceeds from Sale of Property 101,854 - 33,600 Total Other Financing Sources: 2,313,171 3,910,627 12,117,832 1,800,861 Total Revenues and Other Sources: 43,993,259 45,540,023 55,832,407 44,972,145 Total Available: 111,244,550 116,124,837 126,417,221 117,886,607 Expenditures Personal Services 8,857,561 9,509,418 9,605,255 10,126,202 Supplies and Materials 1,808,939 2,081,403 2,155,107 2,241,681 Purchased Services 5,056,108 5,677,349 5,807,718 5,669,767 Other Services and Charges 14,337,773 14,699,221 14,172,791 21,751,761 Capital Outlay 3,215,845 15,608,000 14,383,033 5,783,807 Debt Service 5,172,193 4,496,373 4,499,623 4,220,262 Total Operating Expenditures: 38,448,419 52,071,764 50,623,527 49,793,480 Other Uses Operating Transfers Out 2,211,317 2,330,627 2,879,232 1,800,861 Total Other Uses: 2,211,317 2,330,627 2,879,232 1,800,861 Total Expenditures and Other Uses: 40,659,736 54,402,391 53,502,759 51,594,341 Fund Balance/Net Assets,December31 $ 70,584,814 $ 61,722,446 $ 72,914,462 $ 66,292,266 Change in Fund Balance $ 3,333,523 $ (8,862,368) $ 2,329,648 $ (6,622,196) 4.96% -12.56% 3.30% -9.08 48 CITY OF ANDOVER 2025 Budget Summary Revenues and Expenditures by Fund Type Special Debt Capital Internal General Revenue Service Projects Enterprise Service Total Fund Balance/Net Assets,January 1 $ 11,044,323 $ 2,478,986 $ 3,635,008 $ 43,061,494 $ 11,426,558 $ 1,268,093 $ 72,914,462 Revenues General Property Taxes 12,188,182 195,000 4,881,034 3,184,868 - - 20,449,084 Tax Increments - - - 70,000 70,000 Special Assessments - 2,187,000 2,187,000 Licenses and Permits 668,850 - - 668,850 Intergovernmental 911,625 112,500 5,693,153 - - 6,717,278 Charges for Services 966,910 1,326,000 - 6,828,858 1,965,601 11,087,369 Fines 50,500 - - - - 50,500 Investment Income 100,000 14,250 77,500 62,500 4,000 258,250 User Charges - - 260,685 - - 260,685 Meters - - - 13,000 13,000 Miscellaneous 155,300 869,968 - 340,000 44,000 - 1,409,268 Total Revenues: 15,041,367 2,517,718 4,881,034 11,813,206 6,948,358 1,969,601 43,171,284 Other Financing Sources Operating Transfers In 177,180 - 854,407 710,100 59,174 - 1,800,861 Bond Proceeds - - - - - Total Other Financing Sources: 177,180 - 854,407 710,100 59,174 - 1,800,861 Total Revenues and Other Sources: 15,218,547 2,517,718 5,735,441 12,523,306 7,007,532 1,969,601 44,972,145 Total Available: 26,262,870 4,996,704 9,370,449 55,584,800 18,434,090 3,237,694 117,886,607 Expenditures Personal Services 7,019,657 992,122 - - 1,420,585 693,838 10,126,202 Supplies and Materials 940,041 124,420 654,300 522,920 2,241,681 Purchased Services 5,365,555 304,212 - - - 5,669,767 Other Services and Charges 2,157,902 895,314 14,521,126 3,474,326 703,093 21,751,761 Capital Outlay 235,000 1,008,000 - 4,176,807 364,000 - 5,783,807 Debt Service - - 4,220,262 - - - 4,220,262 Total Operating Expenditures: 15,718,155 3,324,068 4,220,262 18,697,933 5,913,211 1,919,851 49,793,480 Other Uses Operating Transfers Out 310,100 - 568,281 922,480 - 1,800,861 Total Other Uses: - 310,100 - 568,281 922,480 - 1,800,861 Total Expenditures and Other Uses: 15,718,155 3,634,168 4,220,262 19,266,214 6,835,691 1,919,851 51,594,341 Fund Balance/Net Assets,December 31 $ 10,544,715 $ 1,362,536 $ 5,150,187 $ 36,318,586 $ 11,598,399 $ 1,317,843 $ 66,292,266 Change in Fund Balance $ (499,608) $ (1,116,450) $ 1,515,179 $ (6,742,908) $ 171,841 $ 49,750 $ (6,622,196) -4.52% -45.04% 41.68% -15.66% 1.50% 3.92% -9.08% 49 CITY OF ANDOVER Governmental Funds-Major Funds Breakdown 2024A G.O. Tax Street Community Road& Increment Reconstruction Other Totals Center Water Trunk Sewer Trunk Bridge Projects Bonds Governmental Governmental General SRF CPF CPF CPF CPF CPF Funds Funds Revenues: General property taxes $ 12,188,182 $ 155,000 S $ $ 2,514,868 S - $ $ 5,591,034 $ 20,449,084 Tax increment collections - - - 70,000 - 70,000 Licenses and permits 668,850 - - - 668,850 Intergovernmental 911,625 5,693,153 112,500 6,717,278 Special assessments - - 25,000 20,000 2,139,000 3,000 2,187,000 Charges for services 966,910 1,256,000 - - - 70,000 2,292,910 Fines 50,500 - - - - 50,500 Investment income 100,000 5,000 25,000 50,000 11,750 191,750 Miscellaneous: Park dedication fees - - - - 126,975 126,975 Connection charges - 92,775 14,960 - 107,735 Rent - 638,000 - - - - 638,000 Other 155,300 188,068 - 90,000 319,875 753,243 Total revenues 15,041,367 2,242,068 142,775 84,960 10347,021 160,000 6,235,134 34,253325 Expenditures: Current: General government 4,110,680 - - - - 224,900 4,335.580 Public safety 6,906,908 - - - 50,000 6,956,908 Public works 2,483,482 - 50,000 10,288,000 3,650,000 130,207 16,601,689 Parks and recreation 1,635,255 1,933,195 - - - 2.5,000 3,593,450 Recycling 250,230 - - - 250,230 Economic development - 277,126 208,766 485,892 Unallocated 96,600 - - 96,600 Capital outlay: General government - 133,000 133,000 Public safety - - - 1,443,807 1,443,807 Public works - - 100,000 140,000 290,000 1,810,000 2,340,000 Parks and recreation 235,000 1,008,000 - - - 260,000 1,503,000 Debt service: Principal retirement - - 2,980,000 2,980,000 Interest 1,231,862 1,231,862 Paying agent fees - - - - - - - 8,400 8,400 Total expenditures 15,718,155 2,941,195 150,000 140,000 10,578,000 277,126 3,650,000 8,505,942 41,960,419 Revenues over(under)expenditures (676,788) (699,127) (7,225) (55,040) (230,979) (117,126) (3,650,000) (2,270,808) (7,707,093) Other financing sources(uses): Transfers in 177,180 300,000 400,000 10,100 854,407 1,741,687 Transfers out - (300,000) (59,174) - (200,000) (319,207) (878,381) Total other financing sources(uses) 177,180 (300,000) 240,826 400,000 (189,9(t0) .53.5,200 863,306 Net increase(decrease)in fund balance (499,608) (999,127) 233,601 344,960 (420,879) (117,126) (3,650,000) (1,735,608) (6,843,787) Fund balance-January 1 11,044,323 1,573,668 6,004,546 9,240,124 10,727,112 256,916 7,836,938 13,536,184 60,219,811 Fund balance-December 31 $ 10,544,715 S 574,541 $ 6,238,147 $ 9,585.084 $ 10,306,233 $ 139,790 $ 4,186,938 S 11,800,576 $ 53,376,024 50 CITY OF ANDOVER Revenue Comparison-General Fund Actual Actual Actual Budget Estimate Budget 2021 2022 2023 2024 2024 2025 REVENUES Property Taxes $ 9,527,670 $ 9,974,141 $ 10,663,259 $ 11,621,126 $ 11,621,126 $ 12,188,182 License and Permits 891,762 972,878 854,738 617,600 722,175 668,850 Intergovernmental Revenues 939,174 963,290 977,028 868,657 834,259 911,625 Charges for Services 1,036,850 1,295,429 1,447,507 897,610 1,042,220 966,910 Fines and Forfeits 53,747 55,983 70,683 50,500 50,500 50,500 Interest Income (15,183) (189,494) 377,355 75,000 100,000 100,000 Miscellaneous Revenue 167,397 188,395 185,646 154,800 158,165 155,300 Transfers 212,031 197,081 228,772 221,246 221,246 177,180 TOTAL REVENUES $ 12,813,448 $ 13,457,703 $ 14,804,988 $ 14,506,539 $ 14,749,691 $ 15,218,547 City of Andover City of Andover 2025 Revenue Comparison-General Fund 2025 Revenue by Source-General Fund Misc.Rev Propert Taxes 1% Transfers Interest Income 1% 1% Licenses& ermits Fines&Forfeits 0% Charges for Svcs Interg "I Rev 6 0 Intergov'I Rev Charges r Svcs 6% Fines& orfeits ;7 Licenses& Permits Interest ncome i'' 5% Mi 56.ReU �f T sfers Prop -$2.00 $2.00 $6.00 $10.00 $14.00 $oy��Taxes Millions O Budget 2025 ®Estimate 2024 ®Actual 2023 umu Actual 2022 uuu1.Actual 2021 51 CITY OF ANDOVER Expenditure Comparison-General Fund Actual Actual Actual Budget Estimate Budget 2021 2022 2023 2024 2024 2025 EXPENDITURES General Government $ 3,020,260 24% $ 3,222,596 25% $ 3,291,004 25% $ 3,985,287 27% $ 3,997,845 26% $ 4,110,680 26% Public Safety 5,532,429 43% 5,705,358 43% 5,800,627 44% 6,464,154 43% 6,590,730 43% 6,906,908 44% Public Works 3,522,626 27% 3,624,481 28% 3,904,812 30% 4,430,572 30% 4,476,943 29% 4,603,967 29% Other 766,109 6% 567,396 4% 223,436 2% 95,600 1% 189,300 1% 96,600 1% TOTAL EXPENDITURES $ 12,841,424 $ 13,119,831 $ 13,219,879 $ 14,975,613 $ 15,254,818 $ 15,718,155 City of Andover City of Andover 2025 Expenditure Comparison-General Fund 2025 Expenditures by Function-General Fund Other General Gov't 1% General Gov't 26% Public Works Public Safety 29% Public Works Other $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Millions Public Safety 44% O Budget 2025 ®Estimate 2024 ®Actual 2023 uum Actual 2022 uuu Actual 2021 52 CITY OF ANDOVER General Fund-Expenditure Budget Summary Totals-By Department Budget Year 2025 Actual Actual Actual Actual Actual Budget* Estimate Requested* Change(*) 2019 2020 2021 2022 2023 2024 2024 2025 S % GENERAL GOVERN.VENT Mayor and Council $ 99,001 $ 95,519 $ 95,658 $ 95.366 $ 99,860 $ 112,042 $ 105,042 $ 111,874 (169) -0.15% Administration 211,898 187,758 229,314 245,222 278,092 303,714 301,114 319,666 15,952 5.25% Newsletter 24,413 22,156 22,945 24.631 27,733 36,000 32,000 36,000 0 0.00% Human Resources 15,842 16,181 20,836 19.905 21,172 134,494 134,494 99,722 (34,772) -25.85% Attorney 191,782 195,721 199,809 206,399 207,922 223,486 221,000 227,836 4,350 1.95% City Clerk 160,184 166,221 175,177 184,318 193,217 204,009 204,009 212,760 8,751 4.29% Elections 20,452 91,643 20,260 75.115 29,002 90,906 90,906 92,088 1,192 1.30% Finance 280,199 294,501 307,009 320,729 335,992 360,343 360,759 385,635 25,292 7.02% Assessing 149,033 154,482 128,829 131,097 136,705 161,000 161,000 161,000 0 0.00% Information Services 169,827 187,703 185,642 226,588 235,842 249,184 249,184 277,824 28,640 11.49% Planning&Zoning 412,282 453,133 491,395 490,576 473,193 570,506 571,111 583,871 13,365 2.34% Engineering 561,642 566,224 594,720 649,664 703,515 755,758 758,881 789,877 34,119 4.51% Facility Management 547,402 475,083 548,666 552,986 549,759 783,845 808,345 812,527 28,682 3.66% Total General Gov 2,843,957 2,906,325 3,020,260 3,2225596 3,291,004 3,985,287 3,997,845 4,110,680 125,393 3.15 PUBLIC SAFETY Police Protection 3,183,610 3,114,623 3,287,046 3,261,423 3.347.315 3,739,849 3,739,849 3,936,982 197,133 5.27°% Fire Protection 1,391,252 1,508,854 1,706,876 1,961,915 1,926,998 2,120,451 2,251,510 2,332,343 211,892 9.99% Protective Inspection 493,955 519,183 519,787 464,560 501,561 557,917 558,434 586,874 28.957 5.19°% Emergency Management 18,608 17,227 15,203 12.296 19,958 34,987 34,987 39,759 4,772 13.64% Animal Control 4,368 2,347 3,517 5,164 4,795 10,950 5,950 10,950 0 0.00% Total Public Safety 5,091,793 5,162,234 5,532,429 5,705,358 5,800,627 6,464,154 6,590,730 6,906,908 442,754 6.85% PUBLIC WORKS Streets and Highways 615,450 686,978 804,392 788,330 899,542 994,486 1,015,073 1,056,369 61,883 6.22% Snow and Ice Removal 703,647 496,668 540,226 752,396 771,857 901,461 901,461 925,753 24,292 2.69% Street Signs 202,996 257,281 196,782 194,276 169,472 221,186 221,186 229,960 8,774 3.97°% Traffic Signals 26,422 23,045 33,362 28.150 29,471 44,000 44,000 44,000 0 0.00% Street Lighting 32,716 34,211 36,533 36,142 29,975 45,400 45,400 45,400 0 0.00% Street Lights-Billed 145,604 152,181 156,841 158,029 151,879 182,000 182,000 182,000 0 0.00% Park&Recreation 1,180,502 1,426,233 1,505,145 1,482,060 1,665,607 1,779,408 1,805,192 1,853,048 73,640 4.14% Natural Resource Preservatiot 16,831 9,821 9,738 15.932 10,946 17,022 17,022 17,207 195 1.09% Recycling 224,575 228,124 239,607 169,167 176,063 245,609 245,609 250,230 4,621 1.88% Total Public Works 3,148,743 3,314,542 3,522,626 3,624,481 3,904,812 4,430,572 4,476,943 4,603,967 173,395 OTHER 15,001 1,012,779 766,109 567,396 223,436 95,600 189,300 96,600 1,000 1.05% Total Other 15,001 1,012,778 766,109 567,396 223,436 95,600 189,300 96,600 1,000 GRAND TOTAL $ 11,099,494 $ 12,395,879 $ 12,841,424 S 13,119,831 $ 13,219,879 S 14,975,613 S 15,254,818 $ 15,718,155 742,542 4.96% 53 CITY OF ANDOVER General Fund Five Year Financial Projections Adopted Projections Annual 2025 2026 2027 2028 2029 2030 Increase REVENUES Property Taxes $ 12,188,182 $ 12,614,768 $ 13,056,285 $ 13,513,255 $ 13,986,219 $ 14,475,737 3.50% License and Permits 668,850 688,916 709,583 730,870 752,796 775,380 3.00% Intergovernmental Revenues 911,625 938,974 967,143 996,157 1,026,042 1,056,823 3.00% Charges for Current Services 966,910 995,917 1,025,795 1,056,569 1,088,266 1,120,914 3.00% Fines and Forfeits 50,500 52,015 53,575 55,182 56,837 58,542 3.00% Interest Income 100,000 103,000 106,090 109,273 112,551 115,928 3.00% Miscellaneous Revenue 155,300 159,959 164,758 169,701 174,792 180,036 3.00% Transfers 177,180 182,495 187,970 193,609 199,417 205,400 3.00% TOTAL REVENUES 16,218,647 15,736,644 16,271,199 16,824,616 17,396,920 17,988,760 EXPENDITURES General Government 4,110,680 4,192,894 4,276,752 4,362,287 4,449,533 4,538,524 2.00% Public Safety 6,906,908 7,114,115 7,327,538 7,547,364 7,773,785 8,006,999 3.00% Public Works 4,603,967 4,719,066 4,837,043 4,957,969 5,081,918 5,208,966 2.50% Other 96,600 98,049 99,520 101,013 102,528 104,066 1.50% TOTAL EXPEN'DITURE _ 13,7'16,155 16,124,124 16,540,853', 16,968,633 17,407,764 17;858,555 CHANGE IN'FUND BALANCE, $ (499,60�8) $; (388,080) (269,654) $ (144,017) $ (10,844) 130,205 ' Conclusion: The above analysis reflects a conservative view of current City revenues sources and the Department Heads estimated costs to carry on current levels of services into the projected years. Staff will monitor and make recommendations as the various years come up for funding. Currently, the General Fund has had reserves to handle any deficits, but efforts are always made to avoid using these reserves. This five year analysis demostrates that revenues will ultimately keep up with expenditures for the General Fund. This is done by utilizing the current revenue streams through modest rate increases, by diversifying the current revenues with additional fees or charges for services, and other items including market value growth as development continues to pick up,the final debt service payment for state aid bonds increasing the amount of state aid money available for construction and maintenance of roadways, capturing debt service expense margins for operations, and the continual frugile management of Department Heads budget implementation directives and expectations. Other issues that impact the City's budget are some rising employee benefit costs and the sheriffs contract. Health insurance premiums were originally projected to go up 15.0% in 2025; but with better experience the second half of year and some marketing, it was reduced to a 9.5% increase. The sheriff's contract,which represents$3.94m of the total budget in 2025, is reflecting a 5.27%increase. 54 CITY OF ANDOVER 2025 FTE Summary 2022 2023 2024 2025 2022 2023 2024 2025 Actual Current Current Budget Actual Actual Current Budget General Fund Special Revenue Funds General Government Community Center 6.10 6.21 5.82 5.82 Administration 1.26 1.40 1.60 1.60 Drainage&Mapping 0.10 0.08 0.08 0.08 Human Resources 0.08 0.08 0.08 0.08 LRRWMO 0.08 0.08 0.08 0.08 City Clerk 1.92 1.86 1.89 1.89 ROW Mgmt/Utility 0.16 0.18 0.18 0.18 Elections 0.15 0.20 0.20 0.20 6.44 6.55 6.16 6.16 Financial Adminstration 1.99 2.01 2.01 2.01 Information Systems 0.91 0.91 0.91 0.91 Enterprise Funds Planning&Zoning 3.70 3.28 4.00 4.00 Water 5.41 6.03 4.74 4.74 Engineering 5.04 5.19 5.21 5.21 Sewer 3.18 2.72 3.50 3.50 Facility Management 0.85 0.84 0.87 0.87 Storm Sewers 2.12 2.06 2.53 2.53 Total General Government 15.90 15.77 16.77 16.77 10.71 10.81 10.77 10.77 Public Safety Internal Service Funds Fire Protection 5.02 5.01 5.36 5.36 Central Equipment 3.40 3.50 3.34 3.34 Protective Inspection 3.60 3.74 4.33 4.33 Risk Mgmt 0.10 0.10 0.10 0.10 Emergency Management 0.05 0.05 0.05 0.05 3.50 3.60 3.44 3.44 Total Public Safety 8.67 8.80 9.74 9.74 Grand Total 63.62 64.83 65.00 65.00 Public Works Streets& Highways 5.63 6.23 5.64 5.64 Snow&Ice 2.95 3.28 2.60 2.60 Street Signs 1.30 1.13 1.24 1.24 Parks& Recreation 7.69 7.80 7.70 7.70 Natural Resource Preservation - 0.02 0.02 0.02 Recycling 0.83 0.84 0.92 0.92 Total Public Works 18.40 19.30 18.12 18.12 Total General Fund 42.97 43.87 44.63 44.63 Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2022&2023 are based on actual hours charged to various departments. 55 CITY OF ANDOVER 2025 Capital Improvement Plan Projects By Department-Use of Funds Community Center Sanitary Sewer Replacement-Community Center Roof $ 1,000,000 Upgrade Controls at Sanitary Lift Stations $ 10,000 Replacement-Kivac Cleaning Machine 8,000 Sanitary Sewer Lift Station Pump Replacement 100,000 Replacement-Carpeting 15,000 110,000 1,023,000 Storm Sewer Engineering Storm Sewer Improvements 73,000 New Development Projects 210,000 Pedestrian Trail Maintenance 67,000 Streets-Equipment New Pedestrian Trail&Sidewalk Segments 1,890,000 Replacement-Sign Truck#08-408 100,000 Replacement-GPS Antenna Survey Unit 28,000 Replacement-One Ton Truck w/Plow#134 110,000 2,195,000 210,000 Facility Management Streets-Roadways Annual Parking Lot Maintenance/Replacement 45,000 Annual Street Seal Coat Project 160,000 City Hall Remodel 100,000 Annual Pavement Markings 98,000 Replacement-Emergency Generator FS#2 35,000 Curb,Sidewalk and Ped Ramp Replacement 120,000 Replacement-Mini Split Unit QCTV 6,500 Annual Street Reconstruction 3,650,000 Replacement-Water Heater ASN 5,000 Municipal State Aid Routes/Mill&Overlay 550,000 Replacement- Fan Coil Unit ASN 6,500 Street Mill &Overlay 985,000 Replacement-Garage Door Springs FS#2 18,000 Gravel Road Improvement 22,000 216,000 Municipal State Aid Routes/New&Reconstruct 540,000 Intersection Upgrades 4,000,000 Fire Street Full Depth Reclamation 2,831,000 Replacement-800 MHz Radios 50,000 Pavement Rejuvenator Application 175,000 Replacement-Grass&Rescue Vehicle 335,000 Bunker Lake Blvd Traffic Signal Improvements 750,000 Replacement-Thermal Imaging Cameras 35,000 13,881,000 420,000 Water Information Technology Replacement-Residential Meters 100,000 Replacement-HPE VMWare Server Hosts 20,000 Water Main Gate Valve Rehabilitation 50,000 Rehabilitation of Wells 140,000 Park&Recreation-Operations WTP High Service Pump Maintenance 75,000 Replace/Repair Play Structures-Various Parks 200,000 Replacement-WTP Valve Actuators 55,000 Replace/Repair Major Park Projects-Various Parks 35,000 Security Cameras at Towers and Well Houses 12,000 Replacement-Sunshine Park Parking Lot 50,000 Replacement-WTP Flow Meters 55,000 285,000 Replacement-2003 Chevrolet S-10#77 70,000 New-Backup Generator at Well#9 165,000 New-Asphalt Patch Trailer 30,000 Park&Recreation-Projects Replacement-WTP SCADA System 17,000 Annual Miscellaneous Projects 25,000 Fire Hydrant Painting 33,000 Fields at Winslow Cove-New Park 170,000 802,000 Sunshine Park Basketball Court Improvements 65,000 Anoka County Dog Park Improvements 25,000 Grand Total $ 19,520,000 $ 285,000 56 CITY OF ANDOVER 2025 Capital Improvement Plan Sources of Funds Assessments $ 2,139,000 Capital Equipment Reserve 684,500 Community Center Operations 1,023,000 Construction Seal Coating Fund 10,000 County Reimbursements 190,000 Facility Maintenance-Building Fund 259,500 Federal Funds 2,937,600 G.O. Bonds 2,737,500 General Fund 235,000 Grant 250,000 Municipal State Aid Funds 2,729,900 Park Dedication Funds 285,000 Road &Bridge Fund 3,494,000 Sanitary Sewer Fund 110,000 Sewer Trunk Fund 140,000 Storm Sewer Fund 73,000 Trail Funds 1,350,000 Water Fund 722,000 Water Trunk Fund 150,000 Total $ 19,520,000 57 This page left blank intentionally. 58 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET GENERAL FUND DEFINITION: ,' 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 park 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. 59 This page left blank intentionally. 60 City of Andover 2025 Budget - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted Ciescri turn 2023 2,624_; 2024 ; 2025 Fund Balance, January 1 $ 9,964,341 $ 11,549,450 $ 11,549,450 $ 11,044,323 Revenues General Property Taxes 10,663,259 11,621,126 11,621,126 12,188,182 Licenses and Permits 854,739 617,600 722,175 668,850 Intergovernmental 977,028 868,657 834,259 911,625 Charges for Services 1,447,506 897,610 1,042,220 966,910 Fines 70,683 50,500 50,500 50,500 Investment Income 377,355 75,000 100,000 100,000 Miscellaneous Revenue 185,646 154,800 158,165 155,300 Total Revenues: 14,576,216 14,285,293 14,528,445 15,041,367 Other Sources Transfers In 228,772 221,246 221,246 177,180 Total Revenues and Other Sources: 14,804,988 14,506,539 14,749,691 15,218,547 Total Available: 24,769,329 26,055,989 26,299,141 26,262,870 Expenditures Personal Services 6,043,746 6,583,354 6,675,191 7,019,657 Supplies and Materials 711,174 910,213 961,467 940,041 Purchased Services 4,299,053 5,175,463 5,188,477 5,365,555 Other Services and Charges 1,755,904 2,071,583 2,070,983 2,157,902 Capital Outlay 210,002 235,000 265,000 235,000 Total Expenditures: 13,019,879 14,975,613 15,161,118 15,718,155 Other Uses Transfers Out 200,000 - 93,700 - Total Expenditures and Other Uses: 13,219,879 14,975,613 15,254,818 15,718,155 Fund Balance, December 31 $ 11,549,450 $ 11,080,376 $ 11,044,323 $ 10,544,715 Change in Fund Balance $ 1,585,109 $ (469,074) $ (505,127) $ (499,608) 16% -4% -4% -5% 61 Fund: 0101-General Department: Mayor&Council Cost Center: 41100 Director/Manager: City Council Activity Description Actual Current Budgeted The City Council exercises the legislative power of the City by which all matters of policy are Staffing Levels 2023 2024 2025 determined, as provided by the form of government. Council exercises budgetary control One Mayor and Four Council Members through the adoption of the annual budget, and approval of claims against the City treasury. The Council also approves capital improvement projects through the adoption of a five year capital improvement plan identifying the City's infrastructure needs. Council appoints various Actual Current Budgeted citizen committees to render advice on legislative and city issues. Council members respond to Service Expenditures 2023 2024 2025 constituent concerns and questions by working with City administration to address community Personal Services $ 55,979 $ 59,878 $ 59,878 service needs. Supplies& Materials 33,484 34,440 38,316 Other Services/Charges 2,468 2,524 2,680 Purchased Services 7,929 8,200 11,000 Process Used TOTAL 99,860 105,042 111,874 As provided by statutory authority, Council performs a legislative, regulatory and quasi-judical function. The Council meets regularly to consider ordinances, resolutions, and other such actions as may be required by law and circumstance. Various concerns that are brought before Service Expenditures By Category Council for consideration are reviewed and forwarded to staff for an appropriate response. The City Administrator and staff attend meetings to provide information and other forms of support for Council deliberations. �, mr ®Personal Services ®Supplies&Materials Service Expenditure Highlights No major changes planned for Budgeted 2025. oother Services/Charges oPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Council Meetings(Regular) 24 24 24 Actual Current Budgeted Special Workshops 13 16 13 Expenditures Per Capita 2023 2024 2025 Agenda Items-Special Workshops 67 60 65 Population- Estimates 33,089 33,321 33,554 EDA Meetings 8 9 8 Monthly $ 0.25 $ 0.26 $ 0.28 Agenda Items- EDA 50 47 50 Annual $ 3.02 $ 3.15 $ 3.33 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 62 Fund: 0101-General Department: Administration Cost Center: 41200 Director/Manager: City Administrator Activity Description Actual Current Budgeted The City Administrator oversees all city operations and activities as directed by the City StaffinLy Levels 2023 2024 2025 Council. Primary responsibilities include directing the administration of City affairs; FTE Equivalents 1.40 1.60 1.60 enforcing laws, City ordinances and resolutions as adopted by the governing body. Ensures that services are delivered in a cost-effective, efficient and high quality manner. Oversees the preparation of the Annual City Budget and Capital Improvement Plan for Actual Current Budgeted Council adoption. Responsible for keeping Council fully advised as to the financial Service Expenditures 2023 2024 2025 condition and needs of the organization. Personal Services $ 252,244 $ 274,414 $ 290,554 Supplies&Materials 8,326 8,700 10,400 Process Used Other Services/Charges 17,522 18,000 18,712 Policy goals and direction are translated in to management objectives to be administered Purchased Services - - - and delegated to appropriate City departments for implementation and achievement. TOTAL $ 278,092 $ 301,114 $ 319,666 Through reporting relationships established by City ordinance, department directors are responsible to the administator for properly managing and overseeing the operations of their departments. A management team consisting of key department directors works Service Expenditures By Category with the administrator to resolve issues, review projects and address changing community service dynamics. ®Personal Services Service Expenditure Hi2hfthts In Current 2024, a part-time communications specialist position was added. No ®Supplies&Materials significant changes planned for Budgeted 2025. COLA and employee benefit increasesAWO continue to impact department expenditures. 0 Other Services/Charges OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Regular Council Agenda Items 362 373 360 Actual Current Budgeted Council Workshops Attended 13 13 13 Expenditures Per Capita 2023 2024 2025 Council Meetings Attended 24 24 24 Population- Estimates 33,089 33,321 33,554 Staff Meetings Held 52 52 52 Monthly $ 0.70 $ 0.75 $ 0.79 Annual $ 8.40 $ 9.04 $ 9.53 ----------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 63 Fund: 0101-General Department: Newsletter Cost Center: 41210 Director/Manager: Newsletter Coordinator Activity Description Actual Current Budgeted The City publishes a newsletter containing articles regarding important municipal service StaffinLy Levels 2023 2024 2025 news. Funding for publication is provided through general tax levies and is distributed to FTE Equivalents N/A N/A N/A every household and business located with Andover's corporate boundaries. Actual Current Budgeted Process Used Service Expenditures 2023 2024 2025 The City has an active newsletter committee comprised of Council members, and staff Personal Services $ - $ - $ - who meet to determine newsletter articles, format and coordinate the development of the Supplies&Materials 15,909 18,000 19,000 newsletter publication. Each issue is reviewed by City departments to ensure accuracy Other Services/Charges - - - and appropriate content. Starting in late 2017, the newletter is now assembled in-house Purchased Services 11,824 14,000 17,000 and contracted out for printing and distribution to all households and businesses. Articles TOTAL $ 27,733 $ 32,000 $ 36,000 selected for publicatioin are intended to provide the public with timely, newsworthy and customer service oriented information. Each Council member and the City Administrator prepare news articles focusing on significant issues affecting City government. Service Expenditures By Cate2ory Service Expenditure Hiuhli!hts ` ®Personal Services Newsletter setup, printing and postage costs continue to increase. i" ,tillllll� l�tttii� ®Supplies&Materials oOther Services/Charges Actual Current Budgeted oPurchased Services Performance Measures 2023 2024 2025 Number of Meetings Held 6 6 6 Newsletters Published 6 6 6 Actual Current Budgeted Public Circulation 10,824 10,890 11,000 Expenditures Per Capita 2023 2024 2025 Staff Preparation Hours 120 120 120 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.07 $ 0.08 $ 0.09 Annual $ 0.84 $ 0.96 $ 1.07 --------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 64 Fund: 0101-GeneralDepartment: Human Resources Cost Center: 41230 Director/Manager: Human Resources Manager Activity Description Actual Current Budgeted Personnel activities support the City's human resource needs in the areas of recruitment, Staffing Levels 2023 2024 2025 selection, development,training and assessment of organizational needs. Employee benefits, FTE Equivalents 0.08 0.08 0.08 compensation administration, enforcement of personnel policies, and compliance with State and Federal employment laws are essential functions of this department. Labor relations activities such as negotiations, contract administration, grievance processing and costing of Actual Current Budgeted benefits provide the City with the ability to interpret and manage labor components of Service Expenditures 2023 2024 2025 providing City services. Conducting and facilitating employee training in the areas of Personal Services $ 10,265 $ 10,499 $ 11,295 customer service, safety training and programs designed to enhance the productivity and Supplies& Materials 3,023 4,665 4,665 performance of the organization. ACA requirements increase benefits administration. Other Services/Charges 4,867 5,200 5,500 Purchased Services 3,017 114,130 78,262 TOTAL 21,172 134,494 99,722 Process Used Staff needs are continually reviewed by City departments, and annually appropriated for in the budget process through review and justification factors. Human resources will facilitate this Service Expenditures By Category through advertisements,testing and interviews, and processing of new employees. Personnel functions include training, interviewing, record processing and management, benefits,job description development and analysis, pay equity compliance, labor negotiations, drug testing, and ensuring compliance with State and Federal laws. ���q'`ii"9wi1'r+'" oPersonal services :Other Supplies&Materials Service Expenditure HighlightsPurchased Services in Current 2024 includes funding for market rate increases for some services/Charges employees($95,000). Also, the implementation of the Earned Sick and Safe Time (ESST)for oPurchased services part-time employees was initiated in 2024. Budget 2025 includes additional funds for market rate analysis for some employees. Actual Current Budgeted Performance Measures 2023 2024 2025 Actual Current Budgeted Workers Comp Mod Factor 0.8 0.8 0.96 Expenditures Per Capita 2023 2024 2025 Premium change in health insurance 3.00% -4.00% 9.50% Population- Estimates 33,089 33,321 33,554 Hours spent on labor relations 20 0 20 Monthly $ 0.05 $ 0.34 $ 0.25 Hours spent on benefit administration 100 100 100 Annual $ 0.64 $ 4.04 $ 2.97 Employees hired (Seasonal/FT/PT) 12 15 15 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 65 Fund: 0101 -General Department: Attorney Cost Center: 41240 Director/Manager: City Administrator liiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillI Activity Description Actual Current Budgeted The City Attorney provides City Council and staff with research and support on issues of Staffing Levels 2023 2024 2025 a legal matter. The City Attorney also serves as the chief prosecuting attorney for the FTE Equivalents N/A N/A N/A City on offenses committed within the City of Andover. The City Attorney attends council and staff meetings and serves in an advisory capacity to all City departments on matters coming before the City Council. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ - $ - $ - Supplies& Materials - - - Other Services/Charges - - - Purchased Services 207,922 221,000 227,836 Process Used TOTAL $ 207,922 221,000 $ 227,836 Attorney services are provided to the City through an annual contract with the Hawkins& Baumgartner, P.A. Service Expenditures By Category Service Expenditure Highlights „, ®Personal Services No significant changes planned for Budgeted 2025. A 2% increase in contracted ®Supplies&Materials expenditures is included. DOther Services/Charges OPurchased Services Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.52 $ 0.55 $ 0.57 Annual $ 6.28 $ 6.63 $ 6.79 -------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 66 Fund: 0101 -GeneralDepartment: City Clerk Cost enter: 41300 Director/Manager: City Clerk Activity Description Actual Current Budgeted The City Clerk's office prepares the agenda and materials for council meetings; is Staffing Levels 2023 2024 2025 responsible for special assessments, elections, homestead filing, licensing of alcohol FTE Equivalents 1.86 1.89 1.89 and tobacco, gargabe haulers, dogs, peddlers, tree trimmers; signs all official papers; is the keeper of the official city records including resolutions, minutes, ordinances, etc. Assists residents by telephone, email and in person. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ 164,835 $ 173,559 $ 181,474 Supplies &Materials 960 2,250 2,250 Other Services/Charges 27,011 28,000 28,836 Process Used Purchased Services 411 200 200 Activities are conducted pursuant to city ordinances, policies and state law. TOTAL 193,217 204,009 $ 212,760 Service Expenditures By Catej!ory Service Expenditure Highlights No major changes planned for Budgeted 2025. COLA and employee benefits continue W. .. ®Personal Services to increase every year. ®Supplies&Materials IIIIIIIIIII I II i oOther Services/Charges Actual Current Budgeted Performance Measures 2023 2024 2025 13Purchased Services Council packets (hardcopy) 357 309 310 Council packets (emailed) 1,581 1,584 1,585 Licenses Issued 270 387 300 Actual Current Budgeted Assessment Searches 337 370 375 Expenditures Per Capita 2023 2024 2025 False Alarm Letters 0 0 0 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.49 $ 0.51 $ 0.53 Annual $ 5.84 $ 6.12 $ 6.34 -------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 67 Fund: 0101-GeneralDepartment: Elections Cost Center: 41310 Director/Manager: City Clerk Activitv Description Actual Current Budgeted Conduct State and General Elections in accordance with State Law. Staffiniz Levels 2023 2024 2025 FTE Equivalents 0.20 0.20 0.20 Process Used Actual Current Budgeted Notify voters of their precincts; administer filings for local offices; proof ballots; post and publish Service Expenditures 2023 2024 2025 notices; hire sufficient number of judges; arrange for judges'training; notify polling places of Personal Services $ 20,829 $ 77,106 $ 78,288 elections; conduct public accuracy tests to ensure machine accuracy and conduct absentee Supplies&Materials - 2,000 2,000 voting at city hall. Other Services/Charges - - - Purchased Services 7,173 11,800 11,800 TOTAL 28,002 90,906 92,088 Service Expenditure HiL!hlij!hts Service Expenditures By Category No major changes planned for Budgeted 2025. COLA and employee benefits continue to increase every year. ®Personal Services ®Supplies&Materials Actual Current Budgeted �I�� � DOther Services/Charges Performance Measures 2023 2024 2025 oPurchased Services Total number of voters Non election 21,133 Non election Number of Precincts year 10 year Registered voters 23,160 Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.07 $ 0.23 $ 0.23 Annual $ 0.85 $ 2.73 $ 2.74 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 68 Fund: 0101-General Department: Financial Administration Cost enter: 41400 Director/Manager: Finance Director Activitv Description Actual Current Budgeted This department is responsible for administration of the City's financial affairs. This StaffinLy Levels 2023 2024 2025 includes maintaining accounting records for all operations, custody and investment of FTE Equivalents 2.01 2.01 2.01 funds, supervision of revenue collection and disbursements of city monies, administration of debt, payroll function, audit and budget preparation, and the creation of the following annual documents: Annual Consolidated Financial Report, Annual Operating Budget and Actual Current Budgeted the Capital Improvement Plan. Service Expenditures 2023 2024 2025 Personal Services $ 265,291 $ 279,869 $ 301,929 Process Used Supplies&Materials 6,944 10,350 10,750 The financial affairs are conducted in compliance with Federal and State laws, Generally Other Services/Charges 31,588 35,440 35,956 Accepted Accounting Principles and various City policies. Purchased Services 32,169 35,100 37,000 TOTAL $ 335,992 $ 360,759 $ 385,635 Service Expenditure Hiszhlights No major changes planned for Budgeted 2025. COLA and employee benefits continue to increase every year. Audit fees increase each year. Service Expenditures By Cate2ory Actual Current Budgeted Performance Measures 2023 2024 2025 ®Personal Services ®Supplies&Materials Promote use of electronic methods of processing utility payments and payroll: Aftillo Utility payments made electronically 63% 67% 68% 13 Other Services/Charges Payroll checks issued 0 256 0 OPurchased Services Payroll-direct deposit 2,812 2,880 2,900 Utility accounts-Storm Water 11,219 11,248 11,275 Utility accounts-Water 7,188 7,212 7,250 Actual Current Budgeted Utility accounts-Sewer 8,044 8,058 8,070 Expenditures Per Capita 2023 2024 2025 Utility accounts-Street Lights 7,839 7,909 7,950 Population- Estimates 33,089 33,321 33,554 Number of delinquent accounts 755 651 650 Monthly $ 0.85 $ 0.90 $ 0.96 Annual $ 10.15 $ 10.83 $ 11.49 --------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 69 Fund: 0101-GeneralDepartment: Assessing Cost Center: 41410 Director/Manager: Finance Director Activity Description Actual Current Budgeted This department is responsible for assessment for all real and personal property for valuation Staffing Levels 2023 2024 2025 purposes. The City contracts with Anoka County for this service. FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ - $ - $ - Process Used Supplies& Materials - -The assessed valuation is determined by inspections of real and personal property within the Other Services/Charges - - - city. The Assessor follows State statutes and market trends to determine taxable market Purchased Services 136,705 161,000 161,000 value. TOTAL 136,705 161,000 161,000 Service Expenditures By Category Service Expenditure Highlights ®Personal Services No major changes planned for Budgeted 2025. ®Supplies&Materials DOther Services/Charges OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Residential Parcels Assessed 11,063 11,122 11,200 Actual Current Budgeted Commercial Parcels Assessed 174 167 170 Expenditures Per Capita 2023 2024 2025 Apartments Assessed 24 24 24 Population-Estimates 33,089 33,321 33,554 Unimproved Parcels Assessed 576 543 520 Monthly $ 0.34 $ 0.40 $ 0.40 Exempt Parcels 502 502 Annual $ 4.13 $ 4.83 $ 4.80 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 70 Fund: 0101-General Department: Information Systems Cost Center: 41420 Director/Manager: City Administrator Activity Description Actual Current Budgeted This department is responsible for the continued operations of the City's information StaffinLy Levels 2023 2024 2025 technology equipment. The department also provides assistance to computer users to FTE Equivalents 0.91 0.91 0.91 provide timely, accurate and meaningful data for program monitoring and decision- making. Actual Current Budgeted Process Used Service Expenditures 2023 2024 2025 - City website updated and monitored daily Personal Services $ 132,994 $ 131,914 $ 141,174 -Train employees as needed on new and existing software Supplies&Materials 33,402 47,420 51,850 - Network data backup monitored daily Other Services/Charges 68,407 63,350 77,300 - Maintain phone systems including voice mail and assist in future upgrades Purchased Services 1,039 6,500 7,500 - Maintain all City servers and remote users TOTAL $ 235,842 $ 249,184 $ 277,824 - Research new technology for current and future growth - Purchase new equipment as needed - Maintain SPAM firewall for unauthorized emails Service Expenditures By Cate2ory - Maintain network security for prevention of unauthorized access Service Expenditure Hiuhlb!hts ®Personal Services No major changes planned for Budgeted 2025. ° ®Supplies&Materials oOther Services/Charges Actual Current Budgeted OPurchased Services Performance Measures 2023 2024 2025 Number of PC's/Servers 70 70 70 Number of Printers 21 20 20 Number of Phones Maintained 74 74 74 Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.59 $ 0.62 $ 0.69 Annual $ 7.13 $ 7.48 $ 8.28 --------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 71 Fund: 0101-General Department: Planning and Zoning Cost enter: 41500 Director/Manager: Community Development Director Activitv Description Actual Current Budgeted Review residential and commercial developments for conformance with City's StaffinLy Levels 2023 2024 2025 Comprehesive Plan, Ordinances, and Development Policies. Prepare ordinances for FTE Equivalents 3.28 4.00 4.00 Council adoption with the implementation and enforcement of ordinances as directed. Review planning and zoning requests and make recommendations in accordance with adopted regulations. Actual Current Budgeted Service Expenditures 2023 2024 2025 Process Used Personal Services $ 447,866 $ 537,862 $ 555,823 The Planning Department processes development proposals, reviews plats, reviews Supplies&Materials 14,236 17,988 13,600 commercial site plans and responds to citizens' requests for rezonings, special use Other Services/Charges 4,661 7,223 6,150 permits, comprehensive plan amendments and variances. The Zoning Ordinance is the Purchased Services 6,430 8,038 8,298 primary source of information. However, the Andover Review Committee and the City TOTAL 473,193 571,111 583,871 Attorney are also utilized before applications are processed before the Planning and Zoning Commission and City Council. Service Expenditures By Category Service Expenditure Highlights No major changes planned for Budgeted 2025. Actual Current Budgeted ®Personal Services Performance Measures 2023 2024 2025 ®Supplies&Materials Subdivisions Processed 3 1 4 Commercial Site Plans Processed 3 8 2 OOther Services/Charges Conditional Use Permits 3 8 3 OPurchased Services Code Amendments 5 6 2 Comp Plan Amendments 1 2 0 Rezonings 1 0 3 Variances 2 0 1 Actual Current Budgeted Lot Splits 1 1 2 Expenditures Per Capita 2023 2024 2025 P&Z Agendas 10 11 16 Population- Estimates 33,089 33,321 33,554 Vac of Easements 2 6 3 Monthly $ 1.19 $ 1.43 $ 1.45 UP- Interim Use Permit 3 4 2 Annual $ 14.30 $ 17.14 $ 17.40 Abatements 7 9 8 Rental Licenses 138 137 140 -------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 72 Fund: 0101-General Department: Engineering Cost Center: 41600 Director/Manager: City Engineer Activitv Description Actual Current Budgeted The Engineering Division provides review, design and construction related support for the Staffine Levels 2023 2024 2025 development and maintenance of the City infrastructure. The Department maintains and FTE Equivalents 5.19 5.21 5.21 distributes information relative to"as-constructed"drawings for the City infrastructure. Engineering support is provided for other City activities as needed. The department also provides project management and inspection related services for the City. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ 651,921 $ 698,024 $ 726,765 Supplies&Materials 24,465 23,900 23,900 Process Used Other Services/Charges 26,460 32,857 36,912 Engineering support is provided for the development and long-term maintenance of the City Purchased Services 669 4,100 2,300 infrastructure(i.e. water, sanitary sewer,water main, streets,trails, parks, facilities, etc.). TOTAL 7 33,515 758,881 789,877 Engineering reviews plans for all commercial and residential developments to ensure compliance with City standards. Service Expenditures By Cate2ory Service Expenditure Highlights No significant changes planned for Budgeted 2025. COLA and employee benefit increases continue to impact department expenditures. ®Personal services ®Supplies&Materials DOther Services/Charges Actual Current Budgeted oPurchased Services Performance Measures 2023 2024 2025 1. Number of Projects Constructed 10 15 14 2. Number of Projects Reviewed: Prelimary Plats 2 3 3 Commercial Site Plans 5 8 6 Actual Current Budgeted 3. Number of Utility permits issued 116 83 100 Expenditures Per Capita 2023 2024 2025 Population-Estimates 33,089 33,321 33,554 Monthly $ 1.77 $ 1.90 $ 1.96 Annual $ 21.26 $ 22.77 $ 23.54 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 73 Fund: 0101-General Department: Facilities Management Cost Center: 41900 Director/Manager: Finance Director Activity Description Actual Current Budgeted Responsible for the custodial, mechanical, structural and ground maintenance of the City Staffinu Levels 2023 2024 2025 Hall and Public Works campus, park buildings and fire stations. FTE Equivalents 0.84 0.87 0.87 Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ 104,389 $ 110,352 $ 114,207 Process Used Supplies& Materials 19,528 45,270 46,310 The facilities are to be maintained in a healthy, safe and sanitary condition and to work Other Services/Charges 280,656 382,683 399,970 toward facility designs that will maximize operational effeciency while projecting a positive Purchased Services 145,186 270,040 252,040 public image and work environment. TOTAL $ 549,759 $ 808,345 $ 812,527 Service Expenditures By Category Service Expenditure HiLyhliuhts �p�tpri of ®Personal Services No major changes planned for Budget 2025. Current 2024 includes the increase in utility costs seen across the nation. ®Supplies&Materials DOther Services/Charges wh OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Actual Current Budgeted Buildings 22 22 23 Expenditures Per Capita 2023 2024 2025 Parking Lots 16 16 16 Population- Estimates 33,089 33,321 33,554 Monthly $ 1.38 $ 2.02 $ 2.02 Annual $ 16.61 $ 24.26 $ 24.22 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 74 Fund: 0101-General Department: Police Protection Cost Center: 42100 Director/Manager: City Administrator Activity Description Actual Current Budgeted Enforce state laws and city ordinances as directed to provide the public with law Staffine Levels 2023 2024 2025 enforcement services in the area of patrol, investigation, school liaison, crime FTE Equivalents N/A N/A N/A prevention and traffic control. The Anoka County Sheriff's office is responsible for recognizing public safety issues and appropriately reacting to these issues through appropriate law enforcement channels and means. Actual Current Budgeted Service Expenditures 2023 2024 2025 Process Used Personal Services $ - $ - $The City of Andover contracts with the Anoka County Sheriff's Office to provide a Supplies& Materials - - - wide range of public safety and law enforcement services. The Sheriff's Office serves Other Services/Charges - - - as a member of the City's management team, and works with the City to address a Purchased Services 3,347,315 3,739,849 3,936,982 wide range of public safety concerns and issues. Responses to citizens service TOTAL $ 3,347,315 $ 3,739,849 $ 3,936,982 requests are handled by deputies in accordance with established procedures and public safety circumstances. The Sheriffs Office also provides school liaison officers in community schools, prepares news articles and performs a variety of community Service Expenditures By Category safety programming. Service Expenditure Hiuhli!hts N ®Personal Services The 2025 Contract provides for 72 hours per day of patrol service, 6 hours per day of community service, 2 full-time deputy sheriffs assigned to community oriented ®Supplies&Materials policing, and 2 patrol investigators. The primary driver of the cost increase in 2025 is pother services i charges deputy salary increases to remain competitive in the market. OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Number of Part I & II Offenses (arrests) 587 566 575 Number of Calls for Services 13,272 13,299 13,300 Actual Current Budgeted Number of Traffic Citations 757 1,155 900 Expenditures Per Capita 2023 2024 2025 Number of Patrol Hours 26,280 26,280 26,280 Population- Estimates 33,089 33,321 33,554 Number of School Liaison Hours 4,160 1,213 4,160 Monthly $ 8.43 $ 9.35 $ 9.78 Annual $ 101.16 $ 112.24 $ 117.33 --------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 75 Fund: 0101-GeneralDepartment: Fire Protection Cost Center: 42200 Director/Manager: Fire Chief Activity Description Actual Current Budgeted The fire department responds to all fire, emergency medical,and other calls for service Staffing Levels 2023 2024 2025 throughout the City of Andover. Paid-on-call firefighters are alerted to incidents via a FTE Equivalents 5.01 5.36 5.36 pager dispatched through the Anoka County Central Communications System. The fire department is responsible for performing new and existing building plan reviews and existing building inspections to ensure compliance with State and Federal Fire Codes Actual Current Budgeted and Standards. The fire department also provides public eduation and fire safety Service Expenditures 2023 2024 2025 information to residents. Additionally,the Fire Chief,who is also the Fire Marshal,serves Personal Services $ 1,456,108 $ 1,636,427 $ 1,742,246 as the Emergency Management Director,overseeing all City disaster and contingency Supplies&Materials 176,433 257,654 213,920 plans. Other Services/Charges 270,297 300,209 322,740 Purchased Services 24,160 47,220 53,437 Process Used Capital Outlay - 10,000 - Paid-on-call firefighters are professionally trained with each averaging over 160 hours TOTAL 1,926,998 2,251,510 2,332,343 annually to maintain proficiency and certification in their skills used for fire,emergency medial response, and other calls for service. The Fire Chief,with the support of the Service Expenditures By Category Captain of Fire Inspections and the Deputy Fire Chief are well-versed in appropriate State Laws, Fire Codes,and National Standards used for plan reviews, inspections, and fire investigations. Call for service, public education,and training hours have all X,� ®Personal Services increased substantially over th past five years. fit&W ®supplies&Materials ��Service Expenditure Highlights comer services/cnarges Budgeted 2025 continues the enhancement of the duty crew program and an emphasis ��� iuu GPurcnased services on fire fighter training. It also includes an annual contribution to the Andover Fire Relief ®capAal Outlay Assocation Retirement Fund based on monthly services credit calculations based on prior year's service. Actual Current Budgeted Actual Current Budgeted Performance Measures 2023 2024 2025 Expenditures Per Capita 2023 2024 2025 Fire Responses 556 598 647 Population- Estimates 33,089 33,321 33,554 Emergency Medical Responses 1,623 1,286 1,369 Monthly $ 4.85 $ 5.63 $ 5.79 Fire Inspections/Plan Reviews 291 305 337 Annual $ 58.24 $ 67.57 $ 69.51 Fire Investigations 17 13 15 Public Fire Education (hours) 658 489 621 Customer Contacts 20,909 21,178 22,238 Total Firefighter Training Hours 5,422 5,105 5,362 Average Response Time 8.4 min 8.1 min 8.1 min Number of Firefighters 46 44 57 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 76 Fund: 0101-General Department: Protective Inspection Cost Center: 42300 Director/Manager: Building Official Activity Description Actual Current Budgeted Review and process building permit applications, perform on-site inspections of StaffinLy Levels 2023 2024 2025 residential and commercial construction and ensure that all construction activity is in FTE Equivalents 3.74 4.33 4.33 compliance with State and City building and fire codes. Actual Current Budgeted Service Expenditures 2023 2024 2025 Process Used Personal Services $ 394,718 $ 459,923 $ 490,314 Building permit applications are reviewed, plan checks completed, and construction fees Supplies&Materials 8,458 17,050 17,050 collected. Upon issuance of a permit, the person doing the work calls in for inspections at Other Services/Charges 21,075 29,461 27,510 various states of construction. When construction is completed in accordance with Purchased Services 77,310 52,000 52,000 approved standards, a Certificate of Occupancy is issued. TOTAL $ 501,561 $ 558,434 $ 586,874 Service Expenditures By Cate2ory Service Expenditure Hiuhliuhts No major changes planned for Budgeted 2025. COLA and employee benefits continue to increase every year. - irl�,'14 ®Personal Services IIII I�lii li II iiii mSupplies&Materials DOther Services/Charges Actual Current Budgeted Performance Measures 2023 2024 2025 oPurchased Services Residential New Construction 64 99 70 Other Permits 1,567 1,193 1,300 Commercial, Industrial, etc Actual Current Budgeted New Construction 3 5 3 Expenditures Per Capita 2023 2024 2025 Other Permits 32 154 20 Population- Estimates 33,089 33,321 33,554 Trades& Misc Permits 2,793 3,290 3,000 Monthly $ 1.26 $ 1.40 $ 1.46 Permits Initiated Online 62% 59% 60% Annual $ 15.16 $ 16.76 $ 17.49 --------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 77 Fund: 0101-General Department: Emergency Management Cost Center: 42400 Director/Manager: Building Official Activity Description Actual Current Budgeted Maintain City's emergency warning system. Repair, replace and maintain fourteen (14) Staffing Levels 2023 2024 2025 warning sirens throughout the city to ensure proper activation during storm, civil and FTE Equivalents 0.05 0.05 0.05 emergency conditions. All sirens are visualy checked every April to confirm sirens are operating properly. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ 7,380 $ 7,637 $ 8,115 Process Used Supplies& Materials - 5,850 10,100 If a siren is found to be dysfunctional, a service call is placed, a repair-person comes out, Other Services/Charges 10,443 11,500 11,544 necessary repairs are completed. The 3 oldest sirens were constructed in 2017,the Purchased Services 2,135 10,000 10,000 remaining eleven are newer. Siren warning tests are performed monthly to verify activation TOTAL 19,958 34,987 39,759 and educate citizens regarding the City's Emergency Warning System. Service Expenditures By Category Service Expenditure Highlights No major changes planned for Budgeted 2025.All sirens are relatively new. ®Personal Services ®Supplies&Materials DOther Services/Charges � . Actual Current Budgeted / OPurchased Services Performance Measures 2023 2024 2025 Siren tests throughout the severe weather season 4 4 4 State-wide siren tests 12 12 12 Actual Current Budgeted Number of sirens 14 14 14 Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.05 $ 0.09 $ 0.10 Annual $ 0.60 $ 1.05 $ 1.18 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 78 Fund: 0101-General Department: Animal Control Cost enter: 42500 Director/Manager: City Clerk Activitv Description Actual Current Budgeted The enforcement of City Code Title 5 relating to dogs and cats. Staffing Levels 2023 2024 2025 FTE Equivalents N/A N/A N/A Process Used Actual Current Budgeted Letters are sent to dog and cat owners who allow their animals to run at large warning Service Expenditures 2023 2024 2025 them that they are in violation of the City's ordinance. If the behavior continues, a ticket Personal Services $ - $ - $ - is issued by the Sheriffs office to the owner citing them for a misdemeanor. The City Supplies&Materials 232 150 150 contracts with an independent contractor to provide animal control services. The City, in Other Services/Charges 50 200 200 conjunction with a veterinarian, holds a rabies vaccination clinic every spring. City staff Purchased Services 4,513 5,600 10,600 also issue licenses for dogs in the city. TOTAL 4,795 5,950 10,950 Service Expenditures By Category Service Expenditure Highlights A contract increase is planned for Budgeted 2025 due to a change in service provider. ®Personal Services ®Supplies&Materials " .„ I]Other Services/Charges Actual Current Budgeted OPurchased Services Performance Measures 2023 2024 2025 Number of dogs licensed 209 206 210 Number of animals confined 31 34 36 Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimate 33,089 33,321 33,554 Monthly $ 0.01 $ 0.01 $ 0.03 Annual $ 0.14 $ 0.18 $ 0.33 --------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 79 Fund: 0101-General Department: Streets&Highways Cost enter: 43100 Director/Manager: Street Supervisor Activitv Description Actual Current Budgeted The Streets and Highways Department maintains all City streets to minimize Staffing Levels 2023 2024 2025 deterioration. Maintenance includes seal coating, crack sealing, pothole patching, FTE Equivalents 6.23 5.64 5.64 sweeping, gravel road maintenance and wash and seal bridges. Along with road maintenance, this department is responsible for mowing ditches and trimming boulevard trees. Actual Current Budgeted Service Expenditures 2023 2024 2025 Process Used Personal Services $ 617,770 $ 662,558 $ 682,802 Staff is assigned detailed work, followed by inspections. Equipment and personnel are Supplies&Materials 84,225 96,095 101,095 managed to accomplish maintenance activities. Other Services/Charges 133,523 158,620 174,672 Purchased Services 57,000 97,800 97,800 Service Expenditure Fli2hli2hts Capital Outlay 7,024 - - Current 2024 included an extended patching season due to the lack of snow in November TOTAL $ 899,542 $ 1,015,073 $ 1,056,369 and December. Budgeted 2025 includes a proposal for removing trees in the right of way. Service Expenditures By Category ®Personal Services Actual Current Budgeted ®Supplies&Materials Performance Measures 2023 2024 2025 Asphalt Streets Maintained (miles) 205.5 207 207 DOther Services/Charges Gravel Roads Maintained (miles) 6.5 6.5 6.5 oPurchased Services Cul-de-sacs& Deadends Maintained 364 368 368 ®capital outlay Road Markings/Striping (intersections) 184 196 196 Street Sweeping (miles) 772 876 900 Gravel Usage(tons) 1,009 1,124 1,000 Asphalt Usage (tons) 786 648 700 Actual Current Budgeted Pothole Patching (tons per day) 5.60 5.30 5.50 Expenditures Per Capita 2023 2024 2025 Spray Patcher- Rock (tons) 230 186 220 Population- Estimates 33,089 33,321 33,554 Spray Patcher- Oil (gallons) 3,278 2,648 3,000 Monthly $ 2.27 $ 2.54 $ 2.62 Annual $ 27.19 $ 30.46 $ 31.48 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 80 Fund: 0101-General Department: Snow&Ice Cost Center: 43200 Director/Manager: Street Supervisor Activitv Description Actual Current Budgeted All Public Works Departments provide snow removal services for 205 miles of city streets StaffinLy Levels 2023 2024 2025 and 363 cul-de-sacs. The goal is to provide convenient, reasonably safe travel and to FTE Equivalents 3.28 2.60 2.60 prevent deterioration of the streets due to winter conditions. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ 341,714 $ 352,662 $ 372,259 Supplies&Materials 158,200 195,350 195,350 Process Used Other Services/Charges 271,943 352,449 357,144 Snowplows, equipped with underbody plows, and salt brine sanders are used to clear city Purchased Services - 1,000 1,000 streets. The streets are cleared on a systematic basis as soon as practical after a TOTAL $ 771,857 $ 901,461 $ 925,753 snowstort per city policy. Service Expenditures By Category Service Expenditure Hiuhliihts Personal Services are allocated based on time spent removing snow and ice from roads, trails, and/or parking lots. The increase in Budgeted 2025 is due to Personal Services ®Personal Services (health insurance and COLA)and Other Services/Charges (central equipment allocation). The cost of salt continues to increase. ®Supplies&Materials 0Other Services/Charges Actual Current Budgeted 13Purchased Services Performance Measures 2023 2024 2025 Miles of streets plowed 205.5 207 207 Cul-de-sacs 364 361 361 Sand/Salt Usage(tons) 2,247 1,050 1,700 Actual Current Budgeted Brine Usage (gal) 12,000 6,400 10,000 Expenditures Per Capita 2023 2024 2025 Annual Snowfall (inches) 91 30 60 Population- Estimates 33,089 33,321 33,554 Plowing a 1-2" Snow event(hrs) 6 6 6 Monthly $ 1.94 $ 2.25 $ 2.30 Plowing a 2-4" Snow event(hrs) 7 7 7 Annual $ 23.33 $ 27.05 $ 27.59 Plowing a 4" + Snow event(hrs) 11 11 11 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 81 Fund: 0101-General Department: Street Signs Cost Center: 43300 Director/Manager: Street Supervisor Activitv Description Actual Current Budgeted Installs new signage and replaces/repairs existing signs. All signage for streets and StaffinLy Levels 2023 2024 2025 highways are in compliance with Federal, State, County and City guidelines. The ultimate FTE Equivalents 1.13 1.24 1.24 goal is the safety of pedestrians and to provide traffic directional information for safe travel through the city. Signage for city parks, trails, special events, ordinances, seasonal road restrictions, traffic counts and barricades are also provided by the Sign Department. Actual Current Budgeted Sign data such as location, type and quality of signs is being collected and data entry Service Expenditures 2023 2024 2025 completed on a sign database for sign inventory. Personal Services $ 127,089 $ 155,865 $ 160,752 Supplies&Materials 28,600 47,860 47,860 Other Services/Charges 13,173 15,961 19,848 Process Used Purchased Services 610 1,500 1,500 City staff/Engineers provide data regarding signage for new developments, update Capital Outlay - - - existing signage and any other related sign changes. City staff, engineers, residents, TOTAL $ 169,472 221,186 $ 229,960 local sheriff, Public Works and the general public also provide notification for necessary repairs for damaged signs. Service Expenditure By Category Service Expenditure Hiuhliahts ®Personal Services Minimal changes to Budgeted 2025. ®Supplies&Materials •Other Services/Charges •Purchased Services Actual Current Budgeted •Capital Outlay Performance Measures 2023 2024 2025 Sign Compliant Upgrades (#of zones) 1 1 1 Damaged/Repair/Replace (#of signs) 75 207 200 All Parks and Trail Signs 20 23 20 Actual Current Budgeted Traffic Counts(locations, every 4 yrs) 25 25 25 Expenditures Per Capita 2023 2024 2025 Sign Inventory/Verified (#of zones) 2 1 1 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.43 $ 0.55 $ 0.57 Annual $ 5.12 $ 6.64 $ 6.85 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 82 Fund: 0101-General Department: Traffic Signals Cost Center: 43400 Director/Manager: City Engineer Activity Description Actual Current Budgeted Under the Anoka County Cost Share Policy, the City of Andover is responsible for 1)the StaffinLy Levels 2023 2024 2025 electrical cost of the overhead street lights at intersections and 2)the power of the traffic FTE Equivalents N/A N/A N/A signal and maintenance costs for some aspect of the signal. The City has wayside hords at the railroad tracks at Andover Blvd NW and Crosstown Blvd NW. Actual Current Budgeted Service Expenditures 2023 2024 2025 Process Used Personal Services $ - $ - $ - Intersections are signalized at various locations within the community based on the Anoka Supplies&Materials - - - County cost share policy and the need of the community. Wayside horns have been Other Services/Charges 21,786 31,500 31,500 installed to reduce the train horn noise at the locations mentioned above. Purchased Services 7,685 12,500 12,500 TOTAL $ 29,4TT $ 44,000 $ 44,000 Service Expenditure Hit!hlii!hts Anoka County Highway Department maintains all the traffic signals and EVP systems on Service Expenditures By Category their highway system throughout Andover and expenses continue to rise both in actual cost and increased number of signals and EVP systems. Connexus Energy maintains the overhead street lights and 5- 10 go out every year. Wayside horns require a monthly ®Personal Services inspection/service visit and a bi-annual complete overview of the system. WNN ®Supplies&Materials OOther Services/Charges OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Traffic Signals: Actual Current Budgeted Within the Community 20 20 20 Expenditures Per Capita 2023 2024 2025 Shared (Anoka or Coon Rapids) 8 8 8 Population- Estimates 33,089 33,321 33,554 Wayside Horns 2 2 2 Monthly $ 0.07 $ 0.11 $ 0.11 Annual $ 0.89 $ 1.32 $ 1.31 --------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 83 Fund: 0101-General Department: Street Lighting Cost Center: 43500 Director/Manager: City Engineer Activitv Description Actual Current Budgeted Street lighting and safety lighting provides a safety measure for both pedestrians and the StaffinLy Levels 2023 2024 2025 motoring public. FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ - $ - $ - Supplies&Materials - - - Process Used Other Services/Charges 29,975 40,000 40,000 Street lights are installed at critical intersections of county roads and city streets, in Purchased Services - 5,400 5,400 addition to, other safety lighting needs. TOTAL $ 29,975 $ 45,400 $ 45,400 Service Expenditures By Category Service Expenditure Hiuhliahts As the City continues to develop, new street lights are added with new and existing ®Personal Services neighborhoods and at critical intersections within the City. Due to annual adjustments, "" ®Supplies&Materials maintenance, replacement, and/or repair of lights by Connexus Energy, the expenditures DOther Services/Charges to service these lights have generally shown an upward trend in cost. �� OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Actual Current Budgeted Number of Lights installed and Expenditures Per Capita 2023 2024 2025 maintained by private utility. 337 328 330 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.08 $ 0.11 $ 0.11 Annual $ 0.91 $ 1.36 $ 1.35 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 84 Fund: 0101-General Department: Street Lights Billed Cost Center: 43600 Director/Manager: City Engineer Activitv Description Actual Current Budgeted The street lights that are internal to a residential development are funded by that StaffinLy Levels 2023 2024 2025 development or neighborhood. Both the operation and maintenance costs of the lights FTE Equivalents N/A N/A N/A are billed to the neighborhood property owners. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ - $ - $ - Supplies&Materials - - - Other Services&Charges 118,941 145,000 145,000 Process Used Purchased Services 32,938 37,000 37,000 Connexus Energy operates, maintains and bills the residents for their street lights. Street TOTAL $ 151,879 $ 182,000 $ 182,000 lights are only billed to neighborhoods that have the lights. Service Expenditures By Category ®Personal Services Service Expenditure HiEhli2hts Due to annual adjustments, maintenance, replacement and/or repair of lights by "', ®supplies a Materials Connexus Energy, the expenditures to service these lights have generally shown an DOther Services&Charges upward trend in cost. The billing services contract continues to increase as well. / OPurchased Services Actual Current Budgeted Actual Current Budgeted Performance Measures 2023 2024 2025 Expenditures Per Capita 2023 2024 2025 Number of Street Lights Billed 1,381 1,384 1,390 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.38 $ 0.46 $ 0.45 Annual $ 4.59 $ 5.46 $ 5.42 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 85 Fund: 0101-General Department: Parks&Recreation Cost Center: 45000 Director/Manager: Parks Maintenance Supervisor Activitv Description Actual Current Budgeted The Parks Department maintains the entire City park and trail system. Most of the Staffing Levels 2023 2024 2025 upgrades and additional developments of the parks are also done by the parks staff. FTE Equivalents 7.80 7.70 7.70 Maintenance tasks include playground and play structures, ball infields, ice rinks, buildings and shelters, landscaping,trees and plantings, irrigation systems, painting, blacktop repair, trash and litter control,various construction projects,wood and metal Actual Current Budgeted fabrication, lighting and electrical,trail sign installs, and all turf and seed upkeep. Service Expenditures 2023 2024 2025 Personal Services $ 913,616 $ 956,339 $ 1,006,788 Supplies&Materials 93,566 116,100 121,100 Process Used Other Services/Charges 389,111 391,853 396,660 The top priority for the Parks Department is to provide a safe product or facility for all the Purchased Services 62,700 85,900 93,500 public to use. Provide diverse activities for all groups and associations through the use of Capital Outlay 206,614 255,000 235,000 city parks and/trail system. TOTAL 1,665,607 1,805,192 1,853,048 Service Expenditure Highlights Budgeted 2025 includes any employee changes in health insurance, a COLA adjustment Service Expenditures By Category and any step changes for newer employees. Other Services/Charges changed due to an increased allocation for central services for the operation and maintenance costs ®Personal Services associated with parks equipment- mowers, trail machines,trucks and snow removal 4AW equipment. ®Supplies&Materials DOther Services/Charges Actual Current Budgeted Performance Measures 2023 2024 2025 oPurchased Services Number of City Parks maintained 53 53 54 ®capital outlay Total acreage mowed 340 340 341 Ballfields maintained 27 27 27 Number of playgrounds 43 43 44 Actual Current Budgeted Total soccer fields maintained 20 20 20 Expenditures Per Capita 2023 2024 2025 Miles of trail maintained 41 41 42 Population- Estimates 33,089 33,321 33,554 Ice Rinks/Warming Houses 11 /4 11 /4 11 /4 Monthly $ 4.19 $ 4.51 $ 4.60 Annual $ 50.34 $ 54.18 $ 55.23 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 86 Fund: 0101-General Department: Natural Resource Preservation Cost Center: 45500 Director/Manager: City Engineer Activitv Description Actual Current Budgeted The City has several nature preserves and natural parks that benefit from various forms Staffiniz Levels 2023 2024 2025 of vegetation management. Activities include but not limited to prescribed burns, mowing, FTE Equivalents 0.02 0.02 0.02 spot spraying invasive weeds, harvesting invasive woody species and planting native trees, shrubs, grasses and wild flowers. The City will do some activities in-house and contract some out. This will improve wildlife habitat, storm water quality aesthetics and Actual Current Budgeted long-term sustainability and help provide a natural environment for residents to enjoy. Service Expenditures 2023 2024 2025 Also, the City has an EAB (emerald ash borer) Management Program to chemically treat Personal Services $ 23 $ 2,022 $ 2,207 trees on public and private properties. Finally,the City has committed matching funds for Supplies&Materials 468 2,500 2,500 various grants to purchase trees to be planted throughout the City. Other Services/Charges - - - Purchased Services 10,455 12,500 12,500 TOTAL 10,946 17,022 17,207 Process Used Staff will review the applicable properties on an annual basis and prioritize them for management based on the needs. Service Expenditures By Category Service Expenditure Hiahlil!hts No major changes planned for Budgeted 2025. p ®Personal Services ®Supplies&Materials Actual Current Budgeted pother services i charges Performance Measures 2023 2024 2025 � --�✓ ... OPurchased Services Number of City nature preserves 4 4 4 Number of City Parks undeveloped 6 6 6 Total acreage managed 105 120 120 Ash trees treated 75 100 80 Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.03 $ 0.04 $ 0.04 Annual $ 0.33 $ 0.51 $ 0.51 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 87 Fund: 0101-General Department: Recycling Cost Center: 46000 Director/Manager: Recycling Coordinator Activitv Description Actual Current Budgeted The Recycling Department provides recycling opportunities to all city residents. The goal StaffinLy Levels 2023 2024 2025 is to provide this service in a cost effective manner. FTE Equivalents 0.84 0.92 0.92 Process Used Actual Current Budgeted Refuse and recycling services are provided curbside by licensed haulers in an open Service Expenditures 2023 2024 2025 hauling system. A drop off recycling site is provided by the City. Recycling bins are also Personal Services $ 78,715 $ 88,281 $ 92,787 available through the City. New recycling materials are offered as soon as they become Supplies&Materials 715 7,875 7,875 feasible. The program also provides special educational opportunities for Andover Other Services/Charges 8,311 18,953 19,068 schools and senior apartment complexes to promote waste reduction and recycling. Purchased Services 88,322 130,500 130,500 TOTAL $ 176,063 $ 245,609 $ 250,230 Service Expenditure Hit!hlii!hts A small increase is planned for Budgeted 2025 as recycling disposal fees continue to increase. Organics recycling will be added in 2025 which will added additional expenses. Service Expenditures By Category Actual Current Budgeted ®Personal Services Performance Measures 2023 2024 2025 Schools with recycling bins 7 7 7 ®Supplies&Materials Recycling Days 12 12 12 Recycling collection tonnage 4,400 4,383 4,500 o Other Services iCharges J�J 13Purchased Services Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.44 $ 0.61 $ 0.62 Annual $ 5.32 $ 7.37 $ 7.46 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 88 Fund: 0101-General Department: Unallocated Cost enter: 49100 Director/Manager: Finance Director Activity Description Actual Current Budgeted Unallocated contains funding for the unexpected and miscellaneous items not directly StaffingLevels evels 2023 2024 2025 chargeable to a specific activity. FTE Equivalents N/A N/A N/A Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ - $ - $ - Process Used Supplies &Materials - - - Annually the City reviews the miscellaneous activities funding levels and based on Other Services/Charges 23,436 95,600 96,600 past experiences does budget a contingency amount for unexpected expenditures. Purchased Services - - - Other Uses 200,000 93,700 - TOTAL 223,436 189,300 96,600 Service Expenditures By Catej!ory Service Expenditure Highlights Actual 2023 includes a transfer to the Central Equipment Internal Service Fund of ®Personal Services offset the increase in the price of fuel and parts over the last couple of years. Current 2024 includes a transfer to Capital Equipment Reserve Capital Projects Fund for ®supplies&Materials , storm related expenditures. pother services i charges 13Purchased Services ®Other Uses Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 0.56 $ 0.47 $ 0.24 Annual $ 6.75 $ 5.68 $ 2.88 ---------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 89 This page left blank intentionally. 90 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET SPECIAL REVENUE FUNDS DEFINITION: ,' Special revenue funds are established to justify revenue sources to finance particular functions or projects. Revenue for these funds can come from a variety of sources, such as taxes, fees, gifts and grants or contributions from other governmental entities. Expenditures from these funds are normally restricted by statute, local ordinance, or grant agreements. The funds may be used for either operations or capital outlay as legal restrictions mandate. 91 This page left blank intentionally. 92 City of Andover Special Revenue Funds 2025 Budget Summary - All Special Revenue Funds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted Description' 2023 2024 2024 2025 Fund Balance, January 1 $ 1,973,431 $ 2,316,284 $ 2,316,284 $ 2,478,986 Revenues General Property Taxes 193,630 195,000 195,000 195,000 Intergovernmental 616,536 412,500 512,500 112,500 Charges for Services 1,560,172 1,273,000 1,383,000 1,326,000 Investment Income 125,618 8,400 28,100 14,250 Miscellaneous 976,519 856,068 965,993 869,968 Total Revenues: 3,472,475 2,744,968 3,084,593 2,517,718 Other Sources Transfers In - - - - Total Revenues and Other Sources: 3,472,475 2,744,968 3,084,593 2,517,718 Total Available: 5,445,906 5,061,252 5,400,877 4,996,704 Expenditures Personal Services 906,759 942,630 942,630 992,122 Supplies and Materials 114,131 116,170 138,620 124,420 Purchased Services 757,055 407,886 425,986 304,212 Other Services and Charges 254,941 753,917 657,117 895,314 Capital Outlay 788,436 400,000 449,538 1,008,000 Total Expenditures: 2,821,322 2,620,603 2,613,891 3,324,068 Other Uses Transfers Out 308,300 308,000 308,000 310,100 Total Expenditures and Other Uses: 3,129,622 2,928,603 2,921,891 3,634,168 Fund Balance, December 31 $ 2,316,284 $ 2,132,649 $ 2,478,986 $ 1,362,536 Change in Fund Balance $ 342,853 $ (183,635) $ 162,702 $ (1,116,450) 17% -8% 7% -45% 93 City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 196,839 $ 168,503 $ 168,503 $ 93,251 Revenues Intergovernmental - - - - Charges for Services 17,422 15,000 15,000 15,000 Investment Income 10,195 2,000 2,000 2,000 Miscellaneous 304 - 384 - Total Revenues: 27,921 17,000 17,384 17,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 27,921 17,000 17,384 17,000 Total Available: 224,760 185,503 185,887 110,251 Expenditures Personal Services 2,986 7,536 7,536 7,536 Supplies and Materials 5,915 19,400 19,400 16,400 Purchased Services 9,114 63,600 65,700 13,100 Other Services and Charges 38,242 13,100 - 71,730 Total Expenditures: 56,257 103,636 92,636 108,766 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 56,257 103,636 92,636 108,766 Fund Balance, December 31 $ 168,503 $ 81,867 $ 93,251 $ 1,485 Change in Fund Balance $ (28,336) $ (86,636) $ (75,252) $ (91,766) -14% -51% -45% -98% 94 Fund: Economic Development Authority Activity Type/Code: Special Revenue Department Head: City Administrator Expenditure Highlights hits General Activity Description 2025 continues the Home Improvement Program to assist in exterior To provide for the quality development of commercial and industrial home improvements within the City($25,000). properties to ensure a strong, viable and diversified tax base. 2024 continues the Home Improvement Program to assist in exterior Process Used home improvements within the City($30,000). Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. EDA Budget provides for ongoing maintenance around the Andover Station Development area. The EDA is the primary authority involved in managing the City's four Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 95 City of Andover Special Revenue Funds Local Affordable Housing Aid Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ - $ - $ - $ 100,000 Revenues Intergovernmental - - 100,000 100,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: - - 100,000 100,000 Total Available: - - 100,000 200,000 Expenditures Other Services and Charges - - - 100,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: - - - 100,000 Fund Balance, December 31 $ - $ - $ 100,000 $ 100,000 Change in Fund Balance $ - $ - $ 100,000 $ - n/a n/a n/a 0% 96 Fund: Local Affordable Housing Aid Activity Type/Code: Special Revenue Department ea : Community Development Dir. Expenditure Highlights General Activity Description This is a fund created to track the Local Affordable Housing Aid program. Local Affordable Housing Aid helps local governments develop and preserve Aid began in 2024 and is funded by a new dedicated sales tax on housing affordable housing within their jurisdictions to keep families from losing transactions in the seven-county metropolitan area. housing and to help those experiencing homelessness find housing. Process Used The Minnesota Department of Revenue will distribute the aid semi annually to the City and the aid will be disbursed to qualified applicants. Qualifying projects include: - Emergency rental assistance for households earning less than 80 percent of area median income; and - Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing; and - Projects designed for the purpose of construction, acquisition, rehabilitatioin, demolition or removal of structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have certain incomes. - Housing developed or rehabilitated with funds under this section must be affordable to the local work force. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 97 City of Andover Special Revenue Funds Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted' Estimate, Adopted Desdri tioh 2023, 2024 2024 2025 Fund Balance, January 1 $ 1,103,712 $ 1,379,580 $ 1,379,580 $ 1,573,668 Revenues General Property Taxes 154,097 155,000 155,000 155,000 Charges for Services 1,443,266 1,213,000 1,313,000 1,256,000 Investment Income 57,713 3,000 15,000 5,000 Miscellaneous 878,638 826,068 883,600 826,068 Total Revenues: 2,533,714 2,197,068 2,366,600 2,242,068 Other Sources Transfers In - - - - Total Revenues and Other Sources: 2,533,714 2,197,068 2,366,600 2,242,068 Total Available: 3,637,426 3,576,648 3,746,180 3,815,736 Expenditures Personal Services 861,874 892,245 892,245 939,461 Supplies and Materials 105,378 92,350 111,600 103,600 Purchased Services 612,579 249,400 234,400 189,400 Other Services and Charges 201,418 717,967 634,267 700,734 Capital Outlay 176,597 - - 1,008,000 Total Expenditures: 1,957,846 1,951,962 1,872,512 2,941,195 Other Uses Transfers Out 300,000 300,000 300,000 300,000 Total Expenditures and Other Uses: 2,257,846 2,251,962 2,172,512 3,241,195 Fund Balance, December 31 $ 1,379,580 $ 1,324,686 $ 1,573,668 $ 574,541 Change in Fund Balance $ 275,868 $ (54,894) $ 194,088 $ (999,127) 25% -4% 14% -63% 98 Fund: Community Center Activity Type[Code: Special Revenue Department Head: Recreation Facility Manager Expenditure Highlights General Activity Description 2009 was the first year the YMCA made a full lease payment of$635,000. This fund accounts for the operations of the Andover/YMCA Community The transfer out is the difference between the tax levied for the Community Center, particularly the sports complex, ice arena, field house and concession! Center debt service and the total annual debt service for the Community Center. The aquatic's portion of the Community Center is under the operations of the YMCA. No major programming changes for 2025 except for the addition of a golf simulator put in one of the under-utilized meeting rooms. 2025 also includes the reroofing of the ice arena and field house ($1,000,000). Process Used The Community Center construction started in 2004 and was completed in the summer of 2005. The facility will be managed by the Recreational Facility Manager with oversight by a Community Center Advisory Board and the City Council. The YMCA is a long-term tenant and started making lease payments in 2008. In 2020, an expansion of the Community Center was completed. It includes a multi-sports complex, an additional court added to the field house, senior/teen space, and additional parking. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 99 City of Andover Special Revenue Funds Drainage and Mapping Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 182,602 $ 197,827 $ 197,827 $ 179,170 Revenues Charges for Services 20,304 9,000 10,000 10,000 Investment Income 9,369 1,200 2,000 1,500 Total Revenues: 29,673 10,200 12,000 11,500 Other Sources Transfers In - - - - Total Revenues and Other Sources: 29,673 10,200 12,000 11,500 Total Available: 212,275 208,027 209,827 190,670 Expenditures Personal Services 8,243 8,557 8,557 9,097 Supplies and Materials 491 3,000 3,000 3,000 Purchased Services 5,536 6,000 9,300 6,000 Other Services and Charges 178 9,800 9,800 9,800 Total Expenditures: 14,448 27,357 30,657 27,897 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 14,448 27,357 30,657 27,897 Fund Balance, December 31 $ 197,827 $ 180,670 $ 179,170 $ 162,773 Change in Fund Balance $ 15,225 $ (17,157) $ (18,657) $ (16,397) 8% -9% -9% -9% 100 Fund: Drainage and Mapping Activity Type/Code: Special Revenue DepartmentHead: Dir of PW/City Engineer Expenditure Highlights General Activity Description Minimal changes are planned for this fund as monies are set aside for future The drainage and mapping activity provides the resource to maintain mapping needs. existing and develop new maps and mapping systems for the City. The City GIS is a key component in this mapping and data inventory task. Process Used Existing mapping systems and data are maintained manually in a reproducible format. The existing information is being converted to a digital format as is all new data which is developed for the City. All data will be accessible either manually or through a computerized application. ----------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 101 City of Andover Special Revenue Funds Lower Rum River Watershed Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 100,887 $ 102,403 $ 102,403 $ 102,025 Revenues General Property Taxes 39,533 40,000 40,000 40,000 Investment Income 4,284 400 1,000 750 Total Revenues: 43,817 40,400 41,000 40,750 Other Sources Transfers In - - - - Total Revenues and Other Sources: 43,817 40,400 41,000 40,750 Total Available: 144,704 142,803 143,403 142,775 Expenditures Personal Services 10,202 10,622 10,622 11,147 Supplies and Materials 46 520 520 520 Purchased Services 31,953 29,486 29,686 30,412 Other Services and Charges 100 550 550 550 Total Expenditures: 42,301 41,178 41,378 42,629 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 42,301 41,178 41,378 42,629 Fund Balance, December 31 $ 102,403 $ 101,625 $ 102,025 $ 100,146 Change in Fund Balance $ 1,516 $ (778) $ (378) $ (1,879) 2% -1% 0% -2% 102 Fund: Lower Rum River Watershed Management Organization Activity Type/Code: Special Revenue Department Head: Assistant City Engineer Expenditure Highlights hits General Activity Description Minimal changes are planned for this fund as monies are set aside for future The function of the Lower Rum River Watershed Management needs. Organization (LRRWMO) is to provide for: conservation of water and natural resources; prevention and alleviation of flood damage; and regulation of Fund balance is being set aside for the preparation of the fourth generation creeks, lakes, water courses and storm water conveyance systems for water management plan and any additional services that may be needed. domestic, recreational and public use across municipal boundaries. To achieve this purpose, state law gives watershed management organizations several powers, among which are: 1. Responsibility for preserving natural retention areas. 2. Preparation of plans for water management. 3. Review of municipal water management plans and of projects directly affecting the water resources of the watershed. 4. Review of local land use in the absence of an approved municipal surface water management plan. 5. Collection of data. 6. Conducting of studies and investigations. 7. Construction of improvements, either in response to petition or on the initiative of the LRRWMO. 8. Levying of taxes and assessments for the financing of the previously mentioned activities and for general administration of the organization. -------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 103 City of Andover Special Revenue Funds Forestry Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 3,248 $ 2,994 $ 2,994 $ 2,994 Revenues Intergovernmental 1,432 12,500 12,500 12,500 Investment Income 246 50 - - Total Revenues: 1,678 12,550 12,500 12,500 Other Sources Transfers In - - - - Total Revenues and Other Sources: 1,678 12,550 12,500 12,500 Total Available: 4,926 15,544 15,494 15,494 Expenditures Supplies and Materials 1,932 - 3,200 - Purchased Services - 12,500 9,300 12,500 Total Expenditures: 1,932 12,500 12,500 12,500 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 1,932 12,500 12,500 12,500 Fund Balance, December 31 $ 2,994 $ 3,044 $ 2,994 $ 2,994 Change in Fund Balance $ (254) $ 50 $ - $ - -8% 2% 0% 0% 104 Fund: Forestry Activity Type[Code: Special Revenue Department Head: Dir of PW/City Engineer Expenditure Highlights General Activity Description This fund tracks forestry-related grants with state agencies like the Forestry shall preserve Andover's forest resources and develop control Minnesota Department of Natural Resources (DNR). plans to ensure preservation and/or restoration of these resources. Process Used The City utilizes the Natural Resources Technician to administer the tree sale, coordinate various tree plantings with local organizations like the Eagle Scouts, and monitor preservation and disease tree management grants. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 105 City of Andover Special Revenue Funds Right of Way Management / Utility Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 102,444 $ 139,969 $ 139,969 $ 128,799 Revenues Charges for Services 65,723 26,000 35,000 35,000 Investment Income 5,150 500 1,500 1,000 Total Revenues: 70,873 26,500 36,500 36,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 70,873 26,500 36,500 36,000 Total Available: 173,317 166,469 176,469 164,799 Expenditures Personal Services 23,454 23,670 23,670 24,881 Supplies and Materials 369 900 900 900 Purchased Services 800 8,900 12,600 8,900 Other Services and Charges 425 2,500 2,500 2,500 Total Expenditures: 25,048 35,970 39,670 37,181 Other Uses Transfers Out 8,300 8,000 8,000 10,100 Total Expenditures and Other Uses: 33,348 43,970 47,670 47,281 Fund Balance, December 31 $ 139,969 $ 122,499 $ 128,799 $ 117,518 Change in Fund Balance $ 37,525 $ (17,470) $ (11,170) $ (11,281) 37% -12% -8% -9% 106 Fund: Right of Way Management/Utility Activity Type/Code: Special Revenue DepartmentHead: Dir of PW/City Engineer Expenditure Highlights General Activity Description The transfer to the Road & Bridge Capital Projects is for the degredation The function of Right-of-Way Management is to provide for: of roadways associated with right-of-way permits. management of the public rights-of-way and to recover the rights-of-way management costs; and to regulate the use of public rights-of-way by providers of telecommunication services, public utility services and the like, in a fair, efficient, competitively neutral and substantial uniform manner. Process Used To achieve this purpose, state law gives the City several powers to include requiring the following: 1. Require permits for work within the right-of-way. 2. Collect fees to recover costs associated with the permit including damages to the right-of-way. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 107 City of Andover Special Revenue Funds Charitable Gambling Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 253,398 $ 275,268 $ 275,268 $ 295,777 Revenues Investment Income 12,141 750 3,500 2,500 Miscellaneous 97,577 30,000 82,009 43,900 Total Revenues: 109,718 30,750 85,509 46,400 Other Sources Transfers In - - - - Total Revenues and Other Sources: 109,718 30,750 85,509 46,400 Total Available: 363,116 306,018 360,777 342,177 Expenditures Purchased Services 87,848 38,000 65,000 43,900 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 87,848 38,000 65,000 43,900 Fund Balance, December 31 $ 275,268 $ 268,018 $ 295,777 $ 298,277 Change in Fund Balance $ 21,870 $ (7,250) $ 20,509 $ 2,500 9% -3% 7% 1% 108 Fund: Charitable Gambling Activity Type/Code: Special Revenue DepartmentHead: Finance Director Expenditure Highlights General Activity Description This fund was created to track the donations received from the Andover The licensed organizations are required to donate 10% of their net profits to Hockey Association and Andover Football Association from their charitable the City. gambling activities. Funding is used towards the Alexandra House, Youth First, Family of Promise, teen programing, etc.. Funding for these expenditures are dependent upon donations. Process Used According to State Statute, all expenditures from this fund must be for police, fire and other emergency or public safety-related services, equipment, and and training, excluding pension obligations, or qualifying public service organizations. ADOPTED 2025 BUDGET CITY Of ANDOVER, MINNESOTA 109 City of Andover Special Revenue Funds Crack Seal & Pavement Seal Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 1,452 $ 1,802 $ 1,802 $ 3,302 Revenues Charges for Services 13,457 10,000 10,000 10,000 Investment Income 1,471 500 1,500 1,500 Total Revenues: 14,928 10,500 11,500 11,500 Other Sources Transfers In - - - - Total Revenues and Other Sources: 14,928 10,500 11,500 11,500 Total Available: 16,380 12,302 13,302 14,802 Expenditures Other Services and Charges 14578 10,000 10,000 10,000 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 14,578 10,000 10,000 10,000 Fund Balance, December 31 $ 1,802 $ 2,302 $ 3,302 $ 4,802 Change in Fund Balance $ 350 $ 500 $ 1,500 $ 1,500 24% 28% 83% 45% 110 Fund: Crack Seal & Pavement Seal Activity Type/Code: Special Revenue DepartmentHead: Dir of PW/City Engineer Expenditure Highlights General Activity Description The Crack Seal and Pavement Seal Special Revenue Fund was established in The Crack Seal and Pavement Seal Special Revenue Fund accounts for 1996 and is utilized for the first application of crack seal and pavement seal in contribuitions associated with land development to be used for the respective new developments. developments first application of crack seal and pavement seal. Process Used The City has an annual crack seal and pavement seal program. When possible, new developments will be crack sealed and pavement sealed within the first three years of construction. --------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 111 City of Andover Special Revenue Funds CARES Act / ARPA Funding Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted Descri tion 2023 2024; 2024 2025 Fund Balance, January 1 $ 28,849 $ 47,938 $ 47,938 $ - Revenues Intergovernmental 615,104 400,000 400,000 - Investment Income 25,049 - 1,600 - Total Revenues: 640,153 400,000 401,600 - Other Sources Transfers In - - - - Total Revenues and Other Sources: 640,153 400,000 401,600 - Total Available: 669,002 447,938 449,538 - Expenditures Purchased Services 9,225 - - - Capital Outlay 611,839 400,000 449,538 - Total Expenditures: 621,064 400,000 449,538 - Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 621,064 400,000 449,538 - Fund Balance, December 31 $ 47,938 $ 47,938 $ - $ - Change in Fund Balance $ 19,089 $ - $ (47,938) $ - 66% 0% -100% n/a 112 Fund: CARES Act/ARPA Funding Activity Type/Code: Special Revenue Department Head: Finance Director Expenditure Highlights General Activity Description In 2022, the ARPA Funding can be used to: The CARES Act/ARPA Funding Special Revenue Fund accounts for money distributed to local governments to assist with the financial strain caused by 1. Support public health/safety response COVID-19. 2. Replace public sector revenue loss 3. Water and sewer infrastruction Process Used 4. Address negative economic impacts 5. Premium pay for essential workers Federal guidance indicates that the City can have discretion to determine 6. Broadband infrastructure what the funds can be used for based on compliance to the guidelines provided. The CARES Act provides that payments from the fund may only The current proposal included: be used to cover costs that(1)are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019; (2) Support public health/safety response $ 200,000 were not accounted for in the budget most recently approved as of March 27, Water infrastructure 2,075,738 2020 for the State or government; and (3)were incurred during the period that Facility maintenance 945,875 begins on March 1, 2020 and ends on December 30, 2020. New pedestrian trail 400,000 $ 3,621,613 On March 11, 2021, the American Rescue Plan Act(ARPA)was signed into law. ARPA is a$1.9 trillion package that includes direct relief to states, counties, cities, and towns, as well as public utilities, libraries and transit agencies. The City of Andover received approximately$3.6 million in two distributions-July 2021 and July 2022. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 113 This page left blank intentionally. 114 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET DEBT SERVICE FUNDS DEFINITION: A debt service fund accounts for the accumulation of resources for, and the payment of general long-term principal and interest. Repayment of the debt through principal and interest payments to bond holders is backed by the full faith and credit of the government unit. 115 This page left blank intentionally. 116 City of Andover Debt Service Funds 2025 Budget Summary - All Debt Service Funds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 3,491,233 $ 3,819,273 $ 3,819,273 $ 3,635,008 Revenues General Property Taxes 3,740,870 3,891,710 3,891,710 4,881,034 Investment Income 89,027 - 7,300 - Total Revenues: 3,829,897 3,891,710 3,899,010 4,881,034 Other Sources Operating Transfers In 895,300 845,300 845,300 854,407 Total Revenues and Other Sources: 4,725,197 4,737,010 4,744,310 5,735,441 Total Available: 8,216,430 8,556,283 8,563,583 9,370,449 Expenditures Debt Service Principal 3,125,000 3,240,000 3,240,000 2,980,000 Interest 1,260,997 1,162,366 1,162,366 1,231,862 Other 11,160 7,200 10,450 8,400 Total Expenditures: 4,397,157 4,409,566 4,412,816 4,220,262 Other Uses Operating Transfers Out - 60,854 515,759 - Total Expenditures and Other Uses: 4,397,157 4,470,420 4,928,575 4,220,262 Fund Balance, December 31 $ 3,819,273 $ 4,085,863 $ 3,635,008 $ 5,150,187 Change in Fund Balance $ 328,040 $ 266,590 $ (184,265) $ 1,515,179 9% 7% -5% 42% 117 City of Andover Debt Service Funds Certificates/Capital Notes - 2020A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 388,814 $ 421,659 $ 421,659 $ - Revenues General Property Taxes 374,158 - - - Investment Income 10,147 - - - Total Revenues: 384,305 - - - Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 384,305 - - - Total Available: 773,119 421,659 421,659 - Expenditures Debt Service Principal 330,000 345,000 345,000 - Interest 20,400 6,900 6,900 - Other 1,060 1,200 4,000 - Total Expenditures: 351,460 353,100 355,900 - Other Uses Operating Transfers Out - 60,854 65,759 - Total Expenditures and Other Uses: 351,460 413,954 421,659 - Fund Balance, December 31 $ 421,659 $ 7,705 $ - $ - Change in Fund Balance $ 32,845 $ (413,954) $ (421,659) $ - 8% -98% -100% n/a 118 Fund: 3214 Cost Center: 2020A G.O. Equipment Certificates Department Head: Finance Director Activt TxRe/Code: Debt Service General Activity Description Final payment made in 2024. To account for the payment of principal and interest on long-term debt. Process Used The City issued $1,310,000 of Capital Notes in 2020 to facilitate the purchase of equipment. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 119 City of Andover Debt Service Funds Certificates/Capital Notes - 2021A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 159,008 $ 174,728 $ 174,728 $ 185,303 Revenues General Property Taxes 173,575 174,825 174,825 176,715 Investment Income 3,835 - - - Total Revenues: 177,410 174,825 174,825 176,715 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: 177,410 174,825 174,825 176,715 Total Available: 336,418 349,553 349,553 362,018 Expenditures Debt Service Principal 150,000 155,000 155,000 160,000 Interest 11,100 8,050 8,050 4,900 Other 590 1,200 1,200 1,200 Total Expenditures: 161,690 164,250 164,250 166,100 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 161,690 164,250 164,250 166,100 Fund Balance, December 31 $ 174,728 $ 185,303 $ 185,303 $ 195,918 Change in Fund Balance $ 15,720 $ 10,575 $ 10,575 $ 10,615 10% 6% 6% 6% 120 Fund: 3215 Cost Center: 2021A G.O. EquipmentCertificates Department Head: Finance Director civi / ode: Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2025 $ 164,900 $ 160,000 $ 4,900 2026 166,650 165,000 1,650 Process Used $ 331,550 $ 325,000 $ 6,550 The City issued $630,000 of Capital Notes in 2021 to facilitate the purchase of equipment. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 121 City of Andover Debt Service Funds Certificates/Capital Notes - 2024A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2i128 2024 2024 2025 Fund Balance, January 1 $ - $ - Revenues General Property Taxes - 450,000 450,000 450,000 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: - 450,000 450,000 450,000 Total Available: - 450,000 450,000 450,000 Expenditures Debt Service Principal - - - - Interest - - - 20,748 Other - - - 1,200 Total Expenditures: - - - 21,948 Other Uses Operating Transfers Out - - 450,000 - Total Expenditures and Other Uses: - - 450,000 21,948 Fund Balance, December 31 $ - $ 450,000 $ - $ 428,052 Change in Fund Balance $ - $ 450,000 $ - $ 428,052 n/a n/a n/a n/a 122 Fund: 3216 Cost enter: 2024A G.O. Equipment Certificates Department eaFinance Director Activity Type/Code: Debt Service General Activity Description The projected Debt Service schedule is listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2025 $ 20,748 $ - $ 20,748 2026 414,721 385,000 29,721 Process Used 2027 418,143 400,000 18,143 2028 421,122 415,000 6,122 The City is planning to issue$1,200,000 of Capital Notes in 2024 to facilitate the purchase of equipment. $ 1,274,734 $ 1,200,000 $ 74,734 Due to the timing of issuance, the 2024 levy amount of$450,000 was transferred into the 2024A GO Equipment Certificate Capital Projects Fund and the amount issued was reduced. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 123 City of Andover Debt Service Funds General Obligation Bonds - 2018A G.O. Capital Improvement Plan Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 549,438 $ 587,067 $ 587,067 $ 625,905 Revenues General Property Taxes 608,592 612,794 612,794 617,257 Investment Income 13,883 - 1,200 - Total Revenues: 622,475 612,794 613,994 617,257 Other Sources Operating Transfers In 45,300 45,300 45,300 45,300 Total Revenues and Other Sources: 667,775 658,094 659,294 662,557 Total Available: 1,217,213 1,245,161 1,246,361 1,288,462 Expenditures Debt Service Principal 290,000 300,000 300,000 315,000 Interest 334,006 319,256 319,256 303,881 Other 6,140 1,200 1,200 1,200 Total Expenditures: 630,146 620,456 620,456 620,081 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 630,146 620,456 620,456 620,081 Fund Balance, December 31 $ 587,067 $ 624,705 $ 625,905 $ 668,381 Change in Fund Balance $ 37,629 $ 37,638 $ 38,838 $ 42,476 7% 6% 7% 7% 124 Fund: 3304 Cost enter: 2018A G.O. Capital Improvement Plan Bonds Department Head: Finance Director civit e/ : Debt Service MM Debt Service is scheduled as listed below: General Activity Description Year Amount Principal Interest To account for the payment of principal and interest on long-term debt. 2025 $ 618,881 $ 315,000 $ 303,881 2026 622,631 335,000 287,631 2027 620,506 350,000 270,506 Process Used 2028 626,206 370,000 256,206 2029 624,956 380,000 244,956 The City issued $10,000,000 of Capital Improvement Plan bonds in 2018 2030 623,406 390,000 233,406 to facilitate the construction of additional public works facilities. 2031 621,556 400,000 221,556 2032 624,331 415,000 209,331 2033 621,731 425,000 196,731 2034 623,756 440,000 183,756 2035 620,125 450,000 170,125 2036 620,538 465,000 155,538 2037 620,182 480,000 140,182 2038 619,338 495,000 124,338 2039 622,603 515,000 107,603 2040 619,969 530,000 89,969 2041 621,400 550,000 71,400 2042 621,800 570,000 51,800 2043 616,588 585,000 31,588 2044 620,675 610,000 10,675 $ 12,431,178 $ 9,070,000 $ 3,361,178 The Water and Sanitary Sewer Enterprise Funds will be paying a portion of the annual debt for the new public works facilities. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 125 City of Andover Debt Service Funds General Obligation Bonds - 2012C G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 485,879 $ 539,948 $ 539,948 $ 599,023 Revenues General Property Taxes 963,095 973,650 973,650 969,824 Investment Income 1,395 - - - Total Revenues: 964,490 973,650 973,650 969,824 Other Sources Operating Transfers In 300,000 300,000 300,000 300,000 Total Revenues and Other Sources: 1,264,490 1,273,650 1,273,650 1,269,824 Total Available: 1,750,369 1,813,598 1,813,598 1,868,847 Expenditures Debt Service Principal 960,000 985,000 985,000 1,005,000 Interest 249,281 228,000 228,000 204,356 Other 1,140 1,200 1,575 1,200 Total Expenditures: 1,210,421 1,214,200 1,214,575 1,210,556 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 1,210,421 1,214,200 1,214,575 1,210,556 Fund Balance, December 31 $ 539,948 $ 599,398 $ 599,023 $ 658,291 Change in Fund Balance $ 54,069 $ 59,450 $ 59,075 $ 59,268 11% 11% 11% 10% 126 Fund: 3405 Cost Center: 2012C G.O.AbatementBonds Department Head: Finance Director civi / o e: Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2025 $ 1,209,356 $ 1,005,000 $ 204,356 2026 1,208,275 1,030,000 178,275 Process Used 2027 1,205,250 1,055,000 150,250 2028 1,205,147 1,085,000 120,147 The City sold $19,580,000 of Lease Revenue Bonds in 2004 to finance 2029 1,212,675 1,125,000 87,675 the construction of a community center. Approximately 50%of the debt 2030 1,213,400 1,160,000 53,400 will be paid for by a long-term lease arrangement with the YMCA of 2031 1,218,000 1,200,000 18,000 Minneapolis. The YMCA will run a full service YMCA out of the Community Center building. This issue will be used to advance refund the refunding $ 8,472,103 $ 7,660,000 $ 812,103 issues sold in 2006 and 2007 that refunded the 2004 issue. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 127 City of Andover Debt Service Funds General Obligation Bonds - 2019A G.O. Taxable Abatement Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 995,607 $ 1,086,781 $ 1,086,781 $ 1,159,614 Revenues General Property Taxes 1,021,726 1,028,783 1,028,783 1,018,100 Investment Income 27,488 - 2,900 - Total Revenues: 1,049,214 1,028,783 1,031,683 1,018,100 Other Sources Operating Transfers In 150,000 150,000 150,000 159,107 Total Revenues and Other Sources: 1,199,214 1,178,783 1,181,683 1,177,207 Total Available: 2,194,821 2,265,564 2,268,464 2,336,821 Expenditures Debt Service Principal 570,000 600,000 600,000 630,000 Interest 536,900 507,650 507,650 476,900 Other 1,140 1,200 1,200 1,200 Total Expenditures: 1,108,040 1,108,850 1,108,850 1,108,100 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 1,108,040 1,108,850 1,108,850 1,108,100 Fund Balance, December 31 $ 1,086,781 $ 1,156,714 $ 1,159,614 $ 1,228,721 Change in Fund Balance $ 91,174 $ 69,933 $ 72,833 $ 69,107 9% 6% 7% 6% 128 Fund: 3406 Cost Center: 2019A G.O.Taxable Abatement Bonds Department Head: Finance Director civi / o e: Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2025 $ 1,106,900 $ 630,000 $ 476,900 2026 1,104,650 660,000 444,650 Process Used 2027 1,105,775 695,000 410,775 2028 1,100,275 725,000 375,275 The City sold $15,770,000 of Taxable Abatement Bonds in 2019 to finance 2029 1,106,850 765,000 341,850 the expansion of the community center. 2030 1,105,650 795,000 310,650 2031 1,103,250 825,000 278,250 2032 1,108,850 860,000 248,850 2033 1,107,675 885,000 222,675 2034 1,105,750 910,000 195,750 2035 1,108,000 940,000 168,000 2036 1,104,425 965,000 139,425 2037 1,105,025 995,000 110,025 2038 1,104,725 1,025,000 79,725 2039 1,103,525 1,055,000 48,525 2040 1,106,350 1,090,000 16,350 $17,687,675 $13,820,000 $ 3,867,675 The portion of park dedication fees collected will be used to offset the debt service levy, not to exceed $1,000,000. Transfers to date are: Year Amount 2020 $ 175,146 2021 202,604 2022 163,143 2023 150,000 $ 690,893 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 129 City of Andover Debt Service Funds General Obligation Bonds - 2021A G.O. Street Reconstruction Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 2023 2024 2024 2025 Fund Balance, January 1 $ 912,487 $ 1,009,090 $ 1,009,090 $ 1,065,163 Revenues General Property Taxes 599,724 651,658 651,658 649,138 Investment Income 32,279 - 3,200 - Total Revenues: 632,003 651,658 654,858 649,138 Other Sources Operating Transfers In 400,000 350,000 350,000 350,000 Total Revenues and Other Sources: 1,032,003 1,001,658 1,004,858 999,138 Total Available: 1,944,490 2,010,748 2,013,948 2,064,301 Expenditures Principal 825,000 855,000 855,000 870,000 Interest 109,310 92,510 92,510 75,260 Other 1,090 1,200 1,275 1,200 Total Expenditures: 935,400 948,710 948,785 946,460 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 935,400 948,710 948,785 946,460 Fund Balance, December 31 $ 1,009,090 $ 1,062,038 $ 1,065,163 $ 1,117,841 Change in Fund Balance $ 96,603 $ 52,948 $ 56,073 $ 52,678 11% 5% 6% 5% 130 Fund: 3703 Cost Center: 2021A G.O. StreetReconstruction Department Head: Finance Director civi / ode: Debt Service General Activity Description Debt Service is scheduled as listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2025 $ 945,260 $ 870,000 $ 75,260 2026 942,710 885,000 57,710 Process Used 2027 944,810 905,000 39,810 2028 951,135 925,000 26,135 The City issued $7,135,000 of Street Reconstruction Bonds in 2021 to 2029 946,395 930,000 16,395 facilitate the reconstruction of streets. 2030 945,640 940,000 5,640 $ 5,675,950 $ 5,455,000 $ 220,950 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 131 City of Andover Debt Service Funds General Obligation Bonds - 2024A G.O. Street Reconstruction Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adapted Descri tion 202 2024 2024 2025 Fund Balance, January 1 $ - $ Revenues General Property Taxes - - - 1,000,000 Other Sources Operating Transfers In - - - - Total Revenues and Other Sources: - - - 1,000,000 Total Available: - - - 1,000,000 Expenditures Debt Service Principal - - - - Interest - - - 145,817 Other - - - 1,200 Total Expenditures: - - - 147,017 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - - 147,017 Fund Balance, December 31 $ - $ - $ - $ 852,983 Change in Fund Balance $ - $ - $ - $ 852,983 n/a n/a n/a n/a 132 Fund: 3704 Cost Center: 2024A G.O. StreetReconstruction Department Head: Finance Director civi / ode: Debt Service General Activity Description The projected Debt Service schedule is listed below: To account for the payment of principal and interest on long-term debt. Year Amount Principal Interest 2025 $ 145,817 $ - $ 145,817 2026 918,758 680,000 238,758 Process Used 2027 938,108 720,000 218,108 2028 936,573 740,000 196,573 The City is planning to issue$8,005,000 of Street Reconstruction Bonds 2029 939,374 765,000 174,374 in to facilitate the reconstruction of streets. 2030 936,315 785,000 151,315 2031 936,985 810,000 126,985 2032 936,070 835,000 101,070 2033 933,950 860,000 73,950 2034 935,505 890,000 45,505 2035 935,410 920,000 15,410 $ 9,492,865 $ 8,005,000 $ 1,487,865 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 133 This page left blank intentionally. 134 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET CAPITAL PROJECTS FUNDS DEFINITION: ,' Capital Projects Funds can be used to account for acquisition or construction of major capital facilities financed mainly with governmental fund resources, general obligation debt, special assessments, special assessment debt, grants, or other resources that are not part of proprietary funds or trust funds. 135 This page left blank intentionally. 136 City of Andover Capital Projects Funds 2025 Budget Summary - All Capital Projects Funds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted Description 2023 2024 2024 2025, Fund Balance, January 1 $ 38,834,582 $ 38,647,330 $ 38,647,330 $ 43,061,494 Revenues General Property Taxes 2,357,361 2,434,438 2,434,438 3,184,868 Tax Increments 100,476 100,475 100,582 70,000 Special Assessments 1,114,953 1,301,000 1,453,122 2,187,000 Intergovernmental 3,473,567 7,571,040 7,575,331 5,693,153 Investment Income 1,830,303 97,500 319,500 77,500 User Charges 805,958 409,490 1,680,355 260,685 Miscellaneous 153,645 295,000 165,717 340,000 Total Revenues: 9,836,263 12,208,943 13,729,045 11,813,206 Other Sources Transfers In 708,300 969,854 1,518,459 710,100 Bond Proceeds - 1,580,000 9,205,000 - Proceeds from Sale of Capital Assets 86,059 - 33,600 - Total Other Sources: 794,359 2,549,854 10,757,059 710,100 Total Revenues and Other Sources: 10,630,622 14,758,797 24,486,104 12,523,306 Total Available: 49,465,204 53,406,127 63,133,434 55,584,800 Expenditures Purchased Services - 94,000 193,255 - Other Services and Charges 8,601,188 7,720,893 7,284,963 14,521,126 Capital Outlay 1,532,741 13,038,000 11,598,495 4,176,807 Total Expenditures: 10,133,929 20,852,893 19,076,713 18,697,933 Other Uses Operating Transfers Out 683,945 995,227 995,227 568,281 Total Expenditures and Other Uses: 10,817,874 21,848,120 20,071,940 19,266,214 Fund Balance, December 31 $ 38,647,330 $ 31,558,007 $ 43,061,494 $ 36,318,586 Change in Fund Balance $ (187,252) $ (7,089,323) $ 4,414,164 $ (6,742,908) 0% -18% 11% -16% 137 City of Andover Capital Projects Funds Water Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 202 ' 2024 2024 2025 Fund Balance, January 1 $ 8,196,236 $ 8,464,540 $ 8,464,540 $ 6,004,546 Revenues Special Assessments 6,250 25,000 12,000 25,000 Intergovernmental 64,762 6,100,000 6,100,000 - Investment Income 421,328 25,000 125,000 25,000 User Charges 338,138 89,205 832,233 92,775 Total Revenues: 830,478 6,239,205 7,069,233 142,775 Other Sources Transfers In 300,000 300,000 300,000 300,000 Total Revenues and Other Sources: 1,130,478 6,539,205 7,369,233 442,775 Total Available: 9,326,714 15,003,745 15,833,773 6,447,321 Expenditures Other Services and Charges 410,474 195,000 195,000 50,000 Capital Outlay 317,755 9,340,000 9,340,000 100,000 Total Expenditures: 728,229 9,535,000 9,535,000 150,000 Other Uses Operating Transfers Out 133,945 294,227 294,227 59,174 Total Expenditures and Other Uses: 862,174 9,829,227 9,829,227 209,174 Fund Balance, December 31 $ 8,464,540 $ 5,174,518 $ 6,004,546 $ 6,238,147 Change in Fund Balance $ 268,304 $ (3,290,022) $ (2,459,994) $ 233,601 3% -39% -29% 4% 138 Fund: 4110 Cost Center: Water Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights General Activity Description Projects planned for 2025 include: The Water Trunk Capital Projects Fund accounts for water access fees and trunk improvements as part of development. New Development Projects $ 70,000 Water Main Gate Valve Replacement 50,000 Water Main Improvements 30,000 Process Used $ 150,000 The water system is continually reviewed by the Engineering and Water Departments through studies of service,water quality, and future system expansion or improvements. Projects planned for 2024 include: New Development Projects $ 65,000 Water Main Gate Valve Replacement 100,000 Water Main Improvements 3,000,000 Fiber Optic Conduit Installation 240,000 Rural Reserve-Area Analysis&Sanitary Sewer 30,000 Red Oaks Manor Water Main Replacement 6,100,000 $ 9,535,000 A portion of the connection fee is used to support the Water Treatment Plant and is transferred to the Water Enterprise Fund. ----------------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 139 City of Andover Capital Projects Funds Sewer Trunk Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ 8,207,796 $ 8,956,614 $ 8,956,614 $ 9,240,124 Revenues Special Assessments - 20,000 - 20,000 Investment Income 426,211 50,000 100,000 50,000 User Charges 61,430 14,385 118,510 14,960 Total Revenues: 487,641 84,385 218,510 84,960 Other Sources Transfers In 400,000 400,000 400,000 400,000 Total Revenues and Other Sources: 887,641 484,385 618,510 484,960 Total Available: 9,095,437 9,440,999 9,575,124 9,725,084 Expenditures Other Services and Charges 1,434 - - - Capital Outlay 137,389 335,000 335,000 140,000 Total Expenditures: 138,823 335,000 335,000 140,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 138,823 335,000 335,000 140,000 Fund Balance, December 31 $ 8,956,614 $ 9,105,999 $ 9,240,124 $ 9,585,084 Change in Fund Balance $ 748,818 $ 149,385 $ 283,510 $ 344,960 9% 2% 3% 4% 140 Fund: 4120 s enter: Sewer Trunk Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights General Activity Desciption Projects planned for 2025 include: The Sewer Trunk Capital Projects Fund accounts for access fees and sanitary sewer improvements. City sewage flows through a pipe and lift New Development Projects $ 140,000 station system to a large sewer interceptor, which is then carried to a metro treatment plant. Process Used Projects planned for 2024 include: The Sewer and Engineering Departments continually review the system to determine the proper sizing of pipes and lift stations to process sewage. New Development Projects $ 135,000 Fiber Optic Conduit Installation 60,000 Rural Reserve-Area Analysis&Sanitary Sewer 45,000 Sanitary Sewer Flow Meters 95,000 $ 335,000 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 141 City of Andover Capital Projects Funds Road and Bridge Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ 11,450,951 $ 12,495,605 $ 12,495,605 $ 10,727,112 Revenues General Property Taxes 1,717,457 1,764,438 1,764,438 2,514,868 Special Assessments 1,105,178 1,253,000 1,438,122 2,139,000 Intergovernmental 1,844,102 1,471,040 1,393,374 5,693,153 Investment Income 587,019 - - - Miscellaneous 10,059 - - - Total Revenues: 5,263,815 4,488,478 4,595,934 10,347,021 Other Sources Transfers In 8,300 8,000 8,000 10,100 Total Revenues and Other Sources: 5,272,115 4,496,478 4,603,934 10,357,121 Total Available: 16,723,066 16,992,083 17,099,539 21,084,233 Expenditures Other Services and Charges 3,906,822 6,864,000 6,172,427 10,288,000 Capital Outlay 120,639 - - 290,000 Total Expenditures: 4,027,461 6,864,000 6,172,427 10,578,000 Other Uses Operating Transfers Out 200,000 200,000 200,000 200,000 Total Expenditures and Other Uses: 4,227,461 7,064,000 6,372,427 10,778,000 Fund Balance, December 31 $ 12,495,605 $ 9,928,083 $ 10,727,112 $ 10,306,233 Change in Fund Balance $ 1,044,654 $ (2,567,522) $ (1,768,493) $ (420,879) 9% -21% -14% -4% 142 Fund: 4140 Cost Center: Road and Bridge Department Head. City Engineer Activity Type/Code: Capital Projects Expenditure Hiuhli2hts General Activity Description Some of the major 2025 projects are as follows: The Road and Bridge Fund accounts for road projects and the Pavement Management Program. Annual Street Crack Seal $ 150,000 Pedestrian Trail Maintenance 67,000 Curb, Sidewalk& Ped Ramp Replacement 120,000 Process Used Annual Pavement Markings 98,000 Gravel Road Improvements 22,000 Construction projects are identified by the capital improvement process Mill &Overlay 985,000 and contained in the five-year Capital Improvement Plan (CIP). The Pavement Rejuvenator Application 175,000 council approves the CIP annually, thereby initiating a process of feasibility Street Full Depth Reclamation 2,831,000 study, preparation of plans and specifications, public hearings, ordering of MSA-Intersection Upgrades 4,000,000 the project, bidding the project and construction. MSA-Signal Improvements 750,000 MSA- New&Reconstruct Routes 540,000 This fund also accounts for the pavement management program,which MSA-Trail 290,000 includes annual seal coating, crack sealing and overlays for roads. MSA- Mill &Overlay 550,000 $ 10,578,000 Some of the major 2024 projects are as follows: Annual Street Crack Seal $ 200,000 Pedestrian Trail Maintenance 64,000 Curb, Sidewalk& Ped Ramp Replacement 115,000 Annual Pavement Markings 64,000 Gravel Road Improvements 21,000 Annual Street Reconstruction 1,788,888 Mill & Overlay 165,600 Pavement Rejuvenator Application 150,000 Street Full Depth Reclamation 2,350,000 Rural Reserve-Area Analysis&Sanitary Sewer 75,000 MSA- New&Reconstruct Routes 650,000 MSA- Intersection Upgrades 285,000 MSA- Mill &Overlay 243,939 $ 6,172,427 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 143 City of Andover Capital Projects Funds Park Dedication Projects Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ 1,966,548 $ 2,148,951 $ 2,148,951 $ 2,051,652 Revenues General Property Taxes 14,488 15,000 15,000 15,000 Investment Income 100,019 - 25,000 - User Charges 337,085 253,950 605,701 126,975 Miscellaneous 13,920 25,000 14,000 - Total Revenues: 465,512 293,950 659,701 141,975 Other Sources Transfers In - - - - Total Revenues and Other Sources: 465,512 293,950 659,701 141,975 Total Available: 2,432,060 2,442,901 2,808,652 2,193,627 Expenditures Other Services and Charges 22,623 25,000 25,000 25,000 Capital Outlay 110,486 582,000 582,000 260,000 Total Expenditures: 133,109 607,000 607,000 285,000 Other Uses Operating Transfers Out 150,000 150,000 150,000 159,107 Total Expenditures and Other Uses: 283,109 757,000 757,000 444,107 Fund Balance, December 31 $ 2,148,951 $ 1,685,901 $ 2,051,652 $ 1,749,520 Change in Fund Balance $ 182,403 $ (463,050) $ (97,299) $ (302,132) 9% -22% -5% -15% 144 Fund: 4150 Cost enter: Park Dedication Projects Department Head: City Engineer Activity Type/Code: Capital Projects Expenditure Highlights General Activity Desciption 2025 Projects include: The Park Dedication Fund accounts for contributions associated with land development to be used for constructing and upgrading the City's Annual Miscellaneous Projects $ 25,000 park system. Fields of Winslow Cove- New Park 170,000 Sunshine Park Basketball Court Improvements 65,000 Anoka County Dog Park Improvements 25,000 Process Used $ 285,000 The Park and Recreation Commission evaluates the needs of the community with regard to park and recreation facilities. Recommendations are made to the City Council and projects are then 2024 Projects include: placed into the annual City Capital Improvement Plan. Annual Miscellaneous Projects $ 25,000 Pine Hills North- Building/Shelter 425,000 Park Irrigation Improvements 27,000 Hills of Bunker Lake West Park- Parking Lot Paving 130,000 $ 607,000 A portion of park dedication fees collected will be used to offset the debt service levy for the Community Center expansion, not to exceed $1,000,000. 2020 $ 175,146 2021 202,604 2022 163,143 2023 150,000 2024 150,000 2025 159,107 $ 1,000,000 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 145 City of Andover Capital Projects Funds Building Fund Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ 694,265 $ 784,850 $ 784,850 $ 552,350 Revenues General Property Taxes 352,975 355,000 355,000 355,000 Intergovernmental 12,806 - - - Investment Income 34,701 - 7,500 - Total Revenues: 400,482 355,000 362,500 355,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 400,482 355,000 362,500 355,000 Total Available: 1,094,747 1,139,850 1,147,350 907,350 Expenditures Other Services and Charges 138,372 287,000 380,000 174,500 Capital Outlay 171,525 140,000 215,000 85,000 Total Expenditures: 309,897 427,000 595,000 259,500 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 309,897 427,000 595,000 259,500 Fund Balance, December 31 $ 784,850 $ 712,850 $ 552,350 $ 647,850 Change in Fund Balance $ 90,585 $ (72,000) $ (232,500) $ 95,500 13% -9% -30% 17% 146 Fund: 4160 Cost Center: Building Fund Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights General Activity Description The Building Fund accounts for miscellaneous building improvement Projects planned for 2025 include: projects for all facilities, including land acquisitions. Annual parking lot maintenance $ 45,000 Replacement- Emergency Generator FS#2 35,000 Process Used Replacement-Water Heater ASN 5,000 Replacement- Fan Coil Unit ASN 6,500 Facilities are reviewed annually for non-recurring repairs or for future Replacement- Garage Door Springs FS#2 18,000 facility needs. Replacement- Sunshine Parking Lot Lights 50,000 City Hall Remodel 100,000 $ 259,500 Projects planned for 2024 include: Annual parking lot maintenance $ 165,000 Replacement- Carpet/Tile 30,000 Replacement- Emergency Generator CH 70,000 Replacement- Garage Door Springs FS#1 20,000 Replacement- Roof Top Package Units 9- 16 CH 95,000 City-Wide Facilities Space Analysis 115,000 City Hall Remodel 100,000 $ 595,000 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 147 City of Andover Capital Projects Funds Trail & Transportation Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate' Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 $ 1,026,488 $ 1,135,052 $ 1,135,052 $ 1,270,963 Revenues Investment Income 51,342 - 12,000 - User Charges 69,305 51,950 123,911 25,975 Miscellaneous - - - 250,000 Total Revenues: 120,647 51,950 135,911 275,975 Other Sources Transfers In - - - - Total Revenues and Other Sources: 120,647 51,950 135,911 275,975 Total Available: 1,147,135 1,187,002 1,270,963 1,546,938 Expenditures Other Services and Charges 12,083 - - - Capital Outlay - 230,000 - 1,600,000 Total Expenditures: 12,083 230,000 - 1,600,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 12,083 230,000 - 1,600,000 Fund Balance, December 31 $ 1,135,052 $ 957,002 $ 1,270,963 $ (53,062) Change in Fund Balance $ 108,564 $ (178,050) $ 135,911 $ (1,324,025) 11% -16% 12% -104% 148 Fund: 4170 Cost enter: Trail&Transportation Activity Type/Code: Capital Projects Department Head: Dir of PW/City Engineer liiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillillillillilillilllI Expenditure Hiahliahts General Activity Description The Trail and Transportation Capital Projects Fund accounts for contributions Projects planned for 2025 include: associated with land development to be used for constructing and upgrading the City's Trail System. 8' Bituminous Trail along Coon Creek- East to existing trail in Shadowbrook $ 800,000 Process Used 8' Bituminous Trail along Crosstown Blvd - Xeon St to Prairie Road 800,000 The Park and Recreation Commission evaluates the needs of the community with regard to trail facilities. Recommendations are made to the City Council $ 1,600,000 and projects are then placed into the annual City Capital Improvement Plan. *this segment will only be constructed if funds are available. Projects planned for 2024 include: 8' Bituminous Trail along Crosstown Blvd - Hanson Blvd to Xeon St $ 300,000 8' Bituminous Trail along 7th Ave- 143rd Ave to 7th Ave frontage road 100,000 ARPA Special Revenue Fund (400,000) ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 149 City of Andover Capital Projects Funds Capital Equipment Reserve Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate' Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 $ 1,729,350 $ 3,062,213 $ 3,062,213 $ 3,577,915 Revenues General Property Taxes 272,441 300,000 300,000 300,000 Intergovernmental 1,551,897 - 81,957 - Investment Income 93,221 - 40,000 - Miscellaneous 25,333 - 31,717 - Total Revenues: 1,942,892 300,000 453,674 300,000 Other Sources Transfers In - 261,854 360,459 - Proceeds from Sale of Capital Assets 86,059 - 33,600 - Total Revenues and Other Sources: 2,028,951 561,854 847,733 300,000 Total Available: 3,758,301 3,624,067 3,909,946 3,877,915 Expenditures Other Services and Charges 71,856 50,000 195,536 56,500 Capital Outlay 624,232 326,000 136,495 628,000 Total Expenditures: 696,088 376,000 332,031 684,500 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 696,088 376,000 332,031 684,500 Fund Balance, December 31 $ 3,062,213 $ 3,248,067 $ 3,577,915 $ 3,193,415 Change in Fund Balance $ 1,332,863 $ 185,854 $ 515,702 $ (384,500) 77% 6% 17% -11% 150 Fund: 4180 Cost Center: Capital Equipment Reserve Activity Type[Code: Capital Projects Department Head: Finance Director Expenditure Hiahliahts General Activity Description Projects outlined in the 2025-2029 CIP for year 2025 using the Capital Resources for this fund come from residual fund transfers, interest earnings, Equipment Reserve Capital Projects Fund include: and property tax(capital) levy. Replacement- 800 MHz Radios $ 50,000 Process Used Replacement- One Ton Truck w/Plow#134 110,000 Replacement- HPE VMWare Server Hosts 20,000 During the budget processes, it was determined that various capital Replacement- GPS Antenna Survey Unit 28,000 expenditures were necessary. The Andover Management Team and Andover Replacement- Sign Truck#08-408 100,000 Vehicle Purchasing Committee reviewed departmental needs and prioritized Replacement- Mini Split QCTV Control Room 6,500 capital needs. Replacement- Grass& Rescue Vehicle 335,000 Replacement- Thermal Imaging Cameras 35,000 $ 684,500 Projects outlined in the 2024-2028 CIP for year 2024 using the Capital Equipment Reserve Capital Projects Fund include: Replacement- 800 MHz Radios $ 50,000 Replacement- Survey Equipment 36,000 Replacement- Siren Transmitter Equipment 140,000 Replacement- Toro Groundmaster#561 60,000 Replacement- One Ton Truck w/Plow#569 90,000 $ 376,000 In 2023, a trail machine was advanced funded to be reimbursed from the 2024 General Obligation Equipment Certificate. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 151 City of Andover Capital Projects Funds 2021A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ 50,127 $ - $ - $ - Revenues Investment Income 588 - - - Other Sources Transfers In - - - - Total Revenues and Other Sources: 588 - - - Total Available: 50,715 - - - Expenditures Capital Outlay 50,715 - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 50,715 - - - Fund Balance, December 31 $ - $ - $ - $ - Change in Fund Balance $ (50,127) $ - $ - $ - -100% n/a n/a n/a 152 Fund: 4215 Cost enter: 2021A G.O.Equipment Certificates Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights hits General Activity Description The following is a list of equipment purchased with a 2021 G.O Equipment This fund accounts for major capital equipment purchases. Resources Certificate. for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5-year duration and debt service is funded via Vehicle/ Equipment Replacements: the annual tax levy. New- First Response Vehicle $ 70,000 New-Zero Turn Mower 10,000 Replacement- Large Capacity Mower#585 130,000 Process Used New- Dump Truck w/Snow Removal Equipment 250,000 Replacement-Asphalt Roller 20,000 During the 2022 budget process, it was determined that various capital Replacement- Dump Truck w/Snow Removal Equipment 255,000 equipment was necessary. Replacement- Pickup Truck#6 50,000 $ 785,000 --------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 153 City of Andover Capital Projects Funds 2024A G.O. Equipment Certificate Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate' Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 $ - $ - $ - $ 1,073,807 Revenues Investment Income - - - - Other Sources Transfers In - - 450,000 - Bond Proceeds - 1,580,000 1,200,000 - Total Other Sources: - 1,580,000 1,650,000 - Total Revenues and Other Sources: - 1,580,000 1,650,000 - Total Available: - 1,580,000 1,650,000 1,073,807 Expenditures Purchased Services - 94,000 25,193 - Capital Outlay - 1,285,000 350,000 1,073,807 Total Expenditures: - 1,379,000 375,193 1,073,807 Other Uses Operating Transfers Out - 201,000 201,000 - Total Expenditures and Other Uses: - 1,580,000 576,193 1,073,807 Fund Balance, December 31 $ - $ - $ 1,073,807 $ - Change in Fund Balance $ - $ - $ 1,073,807 $ (1,073,807) n/a n/a n/a -100% 154 Fund: 4216 Cost Center: 2024A G.O.Equipment Certificates Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights hits General Activity Description The following is a list of equipment planned to be purchased with a 2024A G.O. This fund accounts for major capital equipment purchases. Resources Equipment Certificate. for the capital equipment come from the issuance of equipment notes. The notes are typically of a 5-year duration and debt service is funded via Vehicle/ Equipment Replacements: the annual tax levy. Replacement- Fire Engine 31 #4800 $ 1,000,000 Replacement- Dump Truck w/Snow Removal#200 325,000 New-Trail Machine 220,000 Process Used $ 1,545,000 During the 2024 budget process, it was determined that various capital equipment was necessary. The new trail machine was purchased in 2023 with a reimbursement resolution in place to reimburse the Capital Equipment Reserve Capital Projects Fund from the bond proceeds to take advantage of cost savings. --------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 155 City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 202 ' 2024 2024 2025 Fund Balance, January 1 $ 970,460 $ 985,834 $ 985,834 $ 256,916 Revenues Tax Increments 100,476 100,475 100,582 70,000 Investment Income 51,499 20,000 7,500 - Miscellaneous 104,333 270,000 120,000 90,000 Total Revenues: 256,308 390,475 228,082 160,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 256,308 390,475 228,082 160,000 Total Available: 1,226,768 1,376,309 1,213,916 416,916 Expenditures Other Services and Charges 240,934 299,893 317,000 277,126 Capital Outlay - 800,000 640,000 - Total Expenditures: 240,934 1,099,893 957,000 277,126 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 240,934 1,099,893 957,000 277,126 Fund Balance, December 31 $ 985,834 $ 276,416 $ 256,916 $ 139,790 Change in Fund Balance $ 15,374 $ (709,418) $ (728,918) $ (117,126) 2% -72% -74% -46% 156 Fund: 4501 s Center: Tax Increment Projects Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights General Activity Description 2025 Budgeted expenditures include: The Tax Increment Projects Fund accounts for activities in TIF districts 1-1, 1-2, 1-3, 1-4, 1-5 and 1-6 and all TIF land sales and expenditures to Redevelopment Site Purchases $ - reach the goals of the TIF district plans. Pay-As-You-Go Note 70,000 Rental Property Expenditures 90,000 TIF Administration 117,126 Process Used $ 277,126 Promotion and expansion of the commercial /industrial tax base through redevelopment of land. 2024 Budgeted expenditures include: Redevelopment Site Purchases $ 800,000 Pay-As-You-Go Note 69,893 Rental Property Expenditures 130,000 TIF Administration 100,000 $ 1,099,893 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. TIF District 1-3 and TIF District 1-4 was decertified in 2016. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 157 City of Andover Capital Projects Funds Permanent Improvement Revolving Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 202 ' 2024 2024 2025 Fund Balance, January 1 $ 782,840 $ 613,671 $ 613,671 $ 469,171 Revenues Special Assessments 3,525 3,000 3,000 3,000 Investment Income 35,819 2,500 2,500 2,500 Total Revenues: 39,344 5,500 5,500 5,500 Other Sources Transfers In - - - - Total Revenues and Other Sources: 39,344 5,500 5,500 5,500 Total Available: 822,184 619,171 619,171 474,671 Expenditures Other Services and Charges 8,513 - - - Other Uses Operating Transfers Out 200,000 150,000 150,000 150,000 Total Expenditures and Other Uses: 208,513 150,000 150,000 150,000 Fund Balance, December 31 $ 613,671 $ 469,171 $ 469,171 $ 324,671 Change in Fund Balance $ (169,169) $ (144,500) $ (144,500) $ (144,500) -22% -24% -24% -31% 158 Fund: 4601 Cost Center: Permanent Improvement Revolving Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights General Activity Description No expenditures are planned for 2025. The Permanent Improvement Revolving (PIR) Fund serves as a long-term funding source for large improvement expenditures. These funds can be used to finance infrastructure improvements for new developments if City Council approved the use PIR Funds to help offset the debt requested instead of bonding for them. service payments related to the 2021A GO Street Reconstruction Bonds. The following transfers are: Operating Process Used Transfers The City has issued four bonds totaling$15.4 million thru 2008 in the 2022 $ 400,000 PIR Fund for large capital projects. This fund has collected over$19 million 2023 200,000 of special assessments over the past 17 years. The annual cash flow of 2024 150,000 this fund is intended to eliminate unfunded projects through effective 2025 150,000 management of debt payments and project expenditures. 2026 100,000 2027 100,000 Use of these funds for a qualifying project require a 4/5th's vote. 2028 50,000 2029 50,000 $ 1,200,000 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 159 City of Andover Capital Projects Funds 2021A G.O. Street Reconstruction Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ 3,759,521 $ - $ - $ - Revenues Investment Income 28,556 - - - Other Sources Transfers In - - - - Total Revenues and Other Sources: 28,556 - - - Total Available: 3,788,077 - - - Expenditures Other Services and Charges 3,788,077 - - - Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: 3,788,077 - - - Fund Balance, December 31 $ - $ - $ - $ - Change in Fund Balance $ (3,759,521) $ - $ - $ - -100% n/a n/a n/a 160 Fund: 4703 Cost Center: 2021A G.O.Street Reconstruction Bonds Department Head: Finance Director Activity Type/Code: Capital Projects Expenditure Highlights hits General Activity Description $7,135,000 in bond proceeds were issued to make improvements to various This fund was created to account for the reconstruction of the roadways roads in the City of Andover. in the City of Andover. The City is issued $7,135,000 G.O. Street Reconstruction Bonds to finance these improvements. This fund was closed in 2023. Process Used Large projects that require more funding that the annual allocation lead themselves to being financed through a long-term issuance of bonds. Roads are inspected every three years and the road conditions in Andover are deteriorating to the point where an aggressive reconstruction and mill and overlay program is needed to keep the City's roadway infrastructure at a reasonable level. Large areas will have a mill and overlay done to prolong the life of the existing pavement to add another 10- 15 years of life and roads that are to the point of complete failure will be fully reconstructed. --------------------------------------------------------------------------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 161 City of Andover Capital Projects Funds 2024A G.O. Street Reconstruction Bonds Statement of Revenues, Expenditures and Changes in Fund Balance Actual Adopted Estimate Adopted adscri tion 2023' 2024 2024 2025 Fund Balance, January 1 $ - $ - $ - $ 7,836,938 Revenues Investment Income - - - - Other Sources Bond Proceeds - - 8,005,000 - Total Revenues and Other Sources: - - 8,005,000 - Total Available: - - 8,005,000 7,836,938 Expenditures Purchased Services - - 168,062 - Other Services and Charges - - - 3,650,000 Total Expenditures: - - 168,062 3,650,000 Other Uses Operating Transfers Out - - - - Total Expenditures and Other Uses: - - 168,062 3,650,000 Fund Balance, December 31 $ - $ - $ 7,836,938 $ 4,186,938 Change in Fund Balance $ - $ - $ 7,836,938 $ (3,650,000) n/a n/a n/a -47% 162 Fund: 4704 Cost enter: 2024A G.O.Street Reconstruction Bonds Department Head: Finance Director Activity Type/Code: Capital Projects liiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillillillilillillillillillillillillillilliillillillillillillilliillillilillilI Expenditure Hi2hli2hts General Activity Description It is proposed that$7,945,000 in bond proceeds be issued to make improvements This fund was created to account for the reconstruction of the roadways to various roads in the City of Andover. in the City of Andover. The City is proposing to issue$7,945,000 G.O. Street Reconstruction Bonds to finance these improvements. Some of the major projects are as follows: 2024 Bond Issuance Fees $ 168,062 Process Used 2025 R& B-Annual Street Reconstruction 3,650,000 2026 R&B-Annual Street Reconstruction 4,186,938 Large projects that require more funding that the annual allocation lead themselves to being financed through a long-term issuance of bonds. $ 8,005,000 Roads are inspected every three years and the road conditions in Andover are deteriorating to the point where an aggressive reconstruction and mill and overlay program is needed to keep the City's roadway infrastructure at a reasonable level. Large areas will have a mill and overlay done to prolong the life of the existing pavement to add another 10- 15 years of life and roads that are to the point of complete failure will be fully reconstructed. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 163 This page left blank intentionally. 164 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET ENTERPRISE FUNDS DEFINITION: ,' Governments establish enterprise funds to account for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. 165 This page left blank intentionally. 166 City of Andover Enterprise Funds 2025 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adopted Descr tion 2023 2024 2024 2025, Unrestricted Net Assets, January 1 $ 12,217,398 $ 13,042,642 $ 13,042,642 $ 11,426,558 Revenues Charges for Services 7,501,501 6,464,757 6,464,757 6,828,858 Interest 482,527 62,500 62,500 62,500 Meters 36,544 13,000 13,000 13,000 Miscellaneous 54,799 44,000 44,000 44,000 Total Revenues: 8,075,371 6,584,257 6,584,257 6,948,358 Other Sources Transfers In 133,945 294,227 294,227 59,174 Gain on the Sale of Capital Assets 15,795 - - - Total Other Sources: 149,740 294,227 294,227 59,174 Total Revenues and Other Sources: 8,225,111 6,878,484 6,878,484 7,007,532 Total Available: 20,442,509 19,921,126 19,921,126 18,434,090 Expenditures Personal Services 1,283,446 1,331,896 1,331,896 1,420,585 Supplies and Materials 549,843 547,600 547,600 654,300 Other Services and Charges 3,087,804 3,447,319 3,491,719 3,474,326 Capital Outlay 684,666 1,935,000 2,070,000 364,000 Debt Service 775,036 86,807 86,807 - Total Expenditures: 6,380,795 7,348,622 7,528,022 5,913,211 Other Uses Transfers Out 1,019,072 966,546 966,546 922,480 Total Expenditures and Other Uses: 7,399,867 8,315,168 8,494,568 6,835,691 Unrestricted Net Assets, December 31 $ 13,042,642 $ 11,605,958 $ 11,426,558 $ 11,598,399 Change in Unrestricted Net Assets $ 825,244 $ (1,436,684) $ (1,616,084) $ 171,841 7% -11% -12% 2% 167 City of Andover Enterprise Funds Water Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adopted Estimate Adopted Descr tion 2023 2024 2024 2025, Unrestricted Net Assets, January 1 $ 6,676,318 $ 7,688,293 $ 7,688,293 $ 6,458,695 Revenues Charges for Services 4,171,854 3,072,905 3,072,905 3,233,323 Interest 271,922 30,000 30,000 30,000 Meters 36,544 13,000 13,000 13,000 Miscellaneous 54,799 44,000 44,000 44,000 Total Revenues: 4,535,119 3,159,905 3,159,905 3,320,323 Other Sources Transfers In 133,945 294,227 294,227 59,174 Gain on the Sale of Capital Assets 15,795 - - - Total Other Sources: 149,740 294,227 294,227 59,174 Total Revenues and Other Sources: 4,684,859 3,454,132 3,454,132 3,379,497 Total Available: 11,361,177 11,142,425 11,142,425 9,838,192 Expenditures Personal Services 690,134 601,035 601,035 635,635 Supplies and Materials 514,545 472,800 472,800 579,000 Other Services and Charges 1,105,216 1,293,775 1,332,475 1,246,972 Capital Outlay 122,794 1,675,000 1,743,333 264,000 Debt Service 775,036 86,807 86,807 - Total Expenditures: 3,207,725 4,129,417 4,236,450 2,725,607 Other Uses Transfers Out 465,159 447,280 447,280 404,312 Total Expenditures and Other Uses: 3,672,884 4,576,697 4,683,730 3,129,919 Unrestricted Net Assets, December 31 $ 7,688,293 $ 6,565,728 $ 6,458,695 $ 6,708,273 Change in Unrestricted Net Assets $ 1,011,975 $ (1,122,565) $ (1,229,598) $ 249,578 15% -15% -16% 4% 168 Fund: 5100® aterDepartment: Water Cost Center: 48100 Director/Manager: Utilities Supervisor Activitv Description Actual Current Budgeted Operate and maintain the City's water system including WTP,wells,towers and water Staffinu Levels 2023 2024 2025 mains. Provide a continuous, potable, bacteria-free water supply at proper pressure FTE Equivalents 6.03 4.74 4.74 levels. Maintain customer water meters and respond to other service requests. Maintain water distribution for fire protection system needs. Conform to all State and Actual Current Budgeted Federal monitoring rules, provide tours and information to the public. Service Expenses 2023 2024 2025 Personal Services $ 690,134 $ 601,035 $ 635,635 Process Used Supplies&Materials 514,544 472,800 579,000 Operate wells and WTP in a manner that ensures a safe,clean and adequate water Other Services/Charges 448,692 494,225 494,437 supply,that will meet peak daily demands and fire protection demands. Maintain wells, Purchased Services 654,884 838,250 752,535 treatment facility, and related infrastructure. Operate and maintain chemical fee Capital Outlay - 1,743,333 264,000 equipment. Collect, analyze and record water samples daily. Maintain,test and repair Debt Service 741,675 86,807 - water meters. Respond to emergencies 24 hours a day. Work with contractors to Other Uses 465,159 447,280 404,312 locate water mains,locate and operate gate valves, monitor tests during final TOTAL $ 3,515,088 $ 4,683,730 $ 3,129,919 inspections. Check WTP, 8 wells 7 days a week, 365 days per year. Flush all water mains in the spring every other year. Maintain all hydrants. Locate,operate and clean Service Expenses By Catemory gate valves to ensure proper operation. ®Personal Services Service Expense HiAli2hts USupplies&Materials Current 2024: Purchased Services includes increases in well rehabilitation ($145,000) �Ny C1il11itiii�i III"" iiliilliflfliii i!�rfl t„„ and high service pump rehab($120,000). Capital Outlay includes$1,345,500 for radon + DOther Services/Charges mitigation and the replacement of the plate settler($180,000)at the water treatment plant. 2024 is also the final year of debt service payments. i OPurchased Services mm / ®Capital Outlay Actual Current Budgeted . Performance Measures 2023 2024 2025 ®Debt Service Number of connections 7,208 7,300 7,335 ®Other Uses Number of wells 8 8 8 Number of elevated storage tanks 2 2 2 Water Treatment Facility 1 1 1 Expenses Per Connection Actual Current Budgeted Miles of water main 125.2 129.7 130.5 2023 2024 2025 Number of hydrants 1,343 1,387 1,397 Connections 7,208 7,300 7,335 Number of valves 3,138 3,231 3,241 Monthly $ 40.64 $ 53.47 $ 35.56 Annual $ 487.66 $ 641.61 $ 426.71 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 169 City of Andover Enterprise Funds Sanitary Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adapted Estimate Adopted Description 2023 2024 2024 2025' Unrestricted Net Assets, January 1 $ 4,119,534 $ 3,855,087 $ 3,855,087 $ 3,521,291 Revenues Charges for Services 2,643,592 2,721,544 2,721,544 2,901,238 Interest 151,519 30,000 30,000 30,000 Total Revenues: 2,795,111 2,751,544 2,751,544 2,931,238 Other Sources Transfers In - - - - Total Revenues and Other Sources: 2,795,111 2,751,544 2,751,544 2,931,238 Total Available: 6,914,645 6,606,631 6,606,631 6,452,529 Expenditures Personal Services 349,339 439,757 439,757 473,813 Supplies and Materials 19,294 39,800 39,800 40,300 Other Services and Charges 1,826,326 1,914,581 1,918,281 1,978,444 Capital Outlay 349,092 155,000 188,333 100,000 Total Expenditures: 2,544,051 2,549,138 2,586,171 2,592,557 Other Uses Transfers Out 515,507 499,169 499,169 500,302 Total Expenditures and Other Uses: 3,059,558 3,048,307 3,085,340 3,092,859 Unrestricted Net Assets, December 31 $ 3,855,087 $ 3,558,324 $ 3,521,291 $ 3,359,670 Change in Unrestricted Net Assets $ (264,447) $ (296,763) $ (333,796) $ (161,621) -6% -8% -9% -5% 170 Fund: 5200-8andury Sewer Department: Sanitary Sewer CostCenter 48200 Director/Manager: Utility Supervisor Activity Descriptio Actual Current Budgeted City sewage is collected through a pipe and lift station network to large Metro City Sewer 2023 3034 2025 interceptor pipes that carry it to the Metro Treatment Plant for processing. The sewer FTEEquiva|onta 272 3.50 3.50 division inspects, cleans, and maintains the City's collection system which includes breaks in pipes, manholes, and lift stations. Sewer backups caused by blockage due to debris or breaks in the pipe are cleaned and/or repaired immediately. This department Actual Current Budgeted maintains the integrity mf the entire sanitary sewer system. Service Expenses 2023 2024 2025 Personal Services $ 340.339 $ 439.757 $ 473.813 Supplies& Materials 10.294 39.800 40.300 Process Used Other Services/Charges 100.440 113.467 110.444 Inspect all lift stations five days per week. Clean one-quarter of the City'asewer Purchased Services 1.716.880 1.804.814 1.850.000 collection system via jetting and vacuuming each year. City has implemented atelevising Capital Outlay ' 188.333 100.000 program of the collection system that analyzes the entire system over a five year period. Other Uses 515507 499188 500302 A spot check program checks flows in problem areas. Start|/| program to monitor inflow TOTAL and infiltration into sewer system. Clean known problem area once per month. Monitor, inspect and test of all new sewer lines and manholes before accepting from contractor. Service Expenses By Category Respond to and record all requests from customers, respond to emergencies 24 hours a day. Contract out all major system repairs. MPersonal Services Current 2024 Capital Outlay includes a lift station pump upgrade and a share of a dump 130ther Services/Charges truck. Budget 2025 Capital Outlay continues with lift station pump upgrades. OPurchased Services ECapital Outlay 00ther Uses Actual Current Budgeted Performance Measures 2023 2024 2025 Number ofREC'e 10181 10200 10235 Actual Current Budgeted Number of lift stations 11 11 11 Expenses Per Connection 2023 3034 2025 Miles of sewer main 1047 1057 100.5 SAC'a 10.181 10.200 10.235 Number of sewer manholes 2484 2511 2531 Monthly $ 22.10 $ 2521 $ 25.18 | Annual $ 20023 $ 302.48 $ 302.18 ~��~ ...... ~��~�~~...........~ ..........~ ..........~�~~�~~�~~�~��~��~���~............~............~............~��~��~��~��~ .... .....~��~��~��~��~�� ......~��~��~��~��~��~��~��~��~��~ ADOPTED 2085 BUDGET CITY Of /\NDO\7ED. M1MNESDT/\ City of Andover Enterprise Funds Storm Sewer Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adapted Estimate Adopted Description 2023 2024 2024 2025' Unrestricted Net Assets, January 1 $ 1,421,546 $ 1,499,262 $ 1,499,262 $ 1,446,572 Revenues Charges for Services 686,055 670,308 670,308 694,297 Interest 59,086 2,500 2,500 2,500 Total Revenues: 745,141 672,808 672,808 696,797 Other Sources Transfers In - - - - Total Revenues and Other Sources: 745,141 672,808 672,808 696,797 Total Available: 2,166,687 2,172,070 2,172,070 2,143,369 Expenditures Personal Services 243,973 291,104 291,104 311,137 Supplies and Materials 16,004 35,000 35,000 35,000 Other Services and Charges 156,262 238,963 240,963 248,910 Capital Outlay 212,780 105,000 138,334 - Total Expenditures: 629,019 670,067 705,401 595,047 Other Uses Transfers Out 38,406 20,097 20,097 17,866 Total Expenditures and Other Uses: 667,425 690,164 725,498 612,913 Unrestricted Net Assets, December 31 $ 1,499,262 $ 1,481,906 $ 1,446,572 $ 1,530,456 Change in Unrestricted Net Assets $ 77,716 $ (17,356) $ (52,690) $ 83,884 5% -1% -4% 6% 172 Fund: 5300-Storm Sewer Department: Storm Sewer Cost enter: 48300 Director/Manager: Utility Supervisor Activity Description Actual Current Budgeted Maintenance of all storm sewers, catch basins, manholes, pipes, ditches, and sediment StaffinLy Levels 2023 2024 2025 ponds. FTE Equivalents 2.06 2.53 2.53 Actual Current Budgeted Process Used Service Expenses 2023 2024 2025 The ditches and storm water ponds are cleaned with a backhoe for better drainage and Personal Services $ 243,974 $ 291,104 $ 311,137 to avoid the ponding of stagnant water. This dirt is hauled away or dumped in low places Supplies&Materials 16,004 35,000 35,000 on ditch banks. When it is dumped on site, it becomes necessary to level and grade the Other Services/Charges 66,868 82,963 89,760 banks to facilitate proper mowing. All catch basins and pipes are inspected and cleaned Purchased Services 89,394 158,000 159,150 with a vac truck. The material is then hauled away for proper disposal. Occasional use Capital Outlay - 138,334 - of outside contractors to maintain parts of the system. Televising a portion of the system Other Uses 38,406 20,097 17,866 each year to help comply with the new State and Federal regulations. Streets are swept TOTAL $ 454,646 $ 725,498 $ 612,913 twice a year and as needed to protect water quality and reduce maintenance to infrastructure. Service Expenses By Category ®Personal Services Service Expense Highlights Purchased Services includes storm water improvements in 2024 and 2025. Capital ®Supplies&Materials Outlay: Current 2024 Capital Outlay includes the cost sharing of a dump truck. OOther Services/Charges •._.,, ,, OPurchased Services Actual Current Budgeted ®Capital outlay Performance Measures 2023 2024 2025 OOther Uses Number of billable units 11,508 11,552 11,587 Mileage of storm lines maintained 86.3 87.2 88 Maint. of catch basins& manholes 4,264 4,311 4,361 Actual Current Budgeted Maint. of ponds 560 562 565 Expenses Per Customer 2023 2024 2025 Maint. of culverts 366 366 366 Billable Units 11,508 11,552 11,587 Miles swept 772 876 900 Monthly $ 3.29 $ 5.23 $ 4.41 Storm Lift Stations 1 1 1 Annual $ 39.51 $ 62.80 $ 52.90 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 173 This page left blank intentionally. 174 CITY OF ANDOVER, MINNESOTA 2025 ANNUAL BUDGET INTERNAL SERVICE FUNDS - DEFINITION: ,' Internal Service Funds are used to account for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. 175 This page left blank intentionally. 176 City of Andover Internal Service Funds 2025 Budget Summary - All Internal Service Funds Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Actual Adapted Estimate Adopted Description 202 2024 2024 2025 Unrestricted Net Assets, January 1 $ 770,306 $ 1,209,835 $ 1,209,835 $ 1,268,093 Revenues Charges for Services 1,827,850 1,885,225 1,885,225 1,965,601 Interest Income 32,646 4,000 4,000 4,000 Miscellaneous 29,370 - - - Total Revenues: 1,889,866 1,889,225 1,889,225 1,969,601 Other Sources Transfers In 245,000 - - - Total Revenues and Other Sources: 2,134,866 1,889,225 1,889,225 1,969,601 Total Available: 2,905,172 3,099,060 3,099,060 3,237,694 Expenditures and Other Uses Personal Services 623,610 651,538 655,538 693,838 Supplies and Materials 433,791 507,420 507,420 522,920 Other Services and Charges 637,936 680,509 668,009 703,093 Total Expenditures: 1,695,337 1,839,467 1,830,967 1,919,851 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 1,695,337 1,839,467 1,830,967 1,919,851 Unrestricted Net Assets, December 31 $ 1,209,835 $ 1,259,593 $ 1,268,093 $ 1,317,843 Change in Unrestricted Net Assets $ 439,529 $ 49,758 $ 58,258 $ 49,750 57% 4% 5% 4% 177 City of Andover Internal Service Funds Central Equipment Maintenance Statement of Revenues, Expenditures and Changes in Fund Net Assets Actual Adapted Estimate Adopted Description 202 2024 2024 2025 Unrestricted Net Assets, January 1 $ 216,811 $ 470,498 $ 470,498 $ 493,957 Revenues Charges for Services 992,300 1,141,143 1,141,143 1,175,380 Interest Income 11,838 2,000 2,000 2,000 Miscellaneous 2,962 - - - Total Revenues: 1,007,100 1,143,143 1,143,143 1,177,380 Other Sources Transfers In 245,000 - - - Total Revenues and Other Sources: 1,252,100 1,143,143 1,143,143 1,177,380 Total Available: 1,468,911 1,613,641 1,613,641 1,671,337 Expenditures and Other Uses Personal Services 383,636 393,905 393,905 424,622 Supplies and Materials 400,875 476,620 476,620 490,620 Other Services and Charges 213,902 249,159 249,159 259,243 Total Expenditures: 998,413 1,119,684 1,119,684 1,174,485 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 998,413 1,119,684 1,119,684 1,174,485 Unrestricted Net Assets, December 31 $ 470,498 $ 493,957 $ 493,957 $ 496,852 Change in Unrestricted Net Assets $ 253,687 $ 23,459 $ 23,459 $ 2,895 117% 5% 5% 1% 178 Fund: 6100-Central EquipmentDepartment: Vehicle Maintenance Cost Center: 48800 Director/Manager: Vehicle Maintenance Supervisor Activity Description Actual Current Budgeted Maintains and repairs all City motorized and non-motorized vehicles and equipment to Staffing Levels 2023 2024 2025 provide safe operation. Evaluates equipment needs, orders equipment/vehicles and writes FTE Equivalents 3.50 3.34 3.34 specifications. The department maintains nearly 900 pieces of equipment, in addition to, normal preventative maintenance procedures of tires, brakes, electrical, fabricating and body work. All work, except automatic transmission overhauls and major engine and body Actual Current Budgeted work, are done at the Vehicle Maintenance Shop. Staff inspects garbage trucks as part of Service Expenditures 2023 2024 2025 their license process, and performs commercial vehicle inspections required on all Personal Services $ 383,635 $ 393,905 $ 424,622 applicable City vehicles including the Fire Department. Supplies& Materials 400,876 476,620 490,620 Other Services/Charges 118,437 132,350 137,434 Purchased Services 95,465 116,809 121,809 Process Used TOTAL $ 998,413 $ 1,119,684 $ 1,174,485 City equipment is scheduled for normal service by miles driven or hours/days of service. Most work is done based on first-in first-out with the exception of any emergency repairs being done in order of importance. Emergency equipment are fire vehicles and snow Service Expenditures By Category removal equipment. """ ®Personal Services Service Expenditure Highlights Supplies& Materials continue to climb due to the cost of fuel and replacement parts. msupplies&Materials Purchases Services-sending items out for repairs has increased substantially. ip -Other Services/Charges Actual Current Budgeted oPurchased services Performance Measures 2023 2024 2025 Fleet Vehicles 139 139 139 Number of non-motorized equipment 292 294 295 Actual Current Budgeted Inspections- DOT's&Garbage Haulers 98 92 95 Expenditures Per Capita 2023 2024 2025 Fuel- Unleaded (gal) 17,000 20,000 19,000 Population- Estimates 33,089 33,321 33,554 Fuel- Diesel (gal) 36,000 28,800 30,000 Monthly $ 2.51 $ 2.80 $ 2.92 Small engine equipment Annual $ 30.17 $ 33.60 $ 35.00 ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 179 City of Andover Internal Service Funds Risk Management Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Actual Adapted Estimate Adopted Description 202 2024 2024 2025 Unrestricted Net Assets, January 1 $ 553,495 $ 739,337 $ 739,337 $ 774,136 Revenues Charges for Services 835,550 744,082 744,082 790,221 Interest Income 20,808 2,000 2,000 2,000 Miscellaneous 26,408 - - - Total Revenues: 882,766 746,082 746,082 792,221 Other Sources Transfers In - - - - Total Revenues and Other Sources: 882,766 746,082 746,082 792,221 Total Available: 1,436,261 1,485,419 1,485,419 1,566,357 Expenditures and Other Uses Personal Services 239,974 257,633 261,633 269,216 Supplies and Materials 32,916 30,800 30,800 32,300 Other Services and Charges 424,034 431,350 418,850 443,850 Total Expenditures: 696,924 719,783 711,283 745,366 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 696,924 719,783 711,283 745,366 Unrestricted Net Assets, December 31 $ 739,337 $ 765,636 $ 774,136 $ 820,991 Change in Unrestricted Net Assets $ 185,842 $ 26,299 $ 34,799 $ 46,855 34% 4% 5% 6% 180 Fund: 6200-Risk ManagementDepartment: Risk Management Cost Center: 48900 Director/Manager: Finance Director Activity Description Actual Current Budgeted The Risk Management Fund was established to provide funding for compensated Staffing Levels 2023 2024 2025 absences, safety training, loss reduction and insurance premium deductibles. This fund FTE Equivalents 0.10 0.11 0.10 also functions to mitigate significant rate increases or decreases in property, auto, general liability and workers compensation. Departmental rates are managed by analyzing claims history. Actual Current Budgeted Service Expenditures 2023 2024 2025 Personal Services $ 239,974 $ 261,633 $ 269,216 Supplies& Materials 32,916 30,800 32,300 Process Used Other Services/Charges 331,678 329,100 351,600 The City Administrator/Finance Director along with the Human Resources Manager Purchased Services 92,356 89,750 92,250 promote various safety and wellness programs with the funding received. One of the TOTAL $ 696,924 $ 711,283 $ 745,366 most notable products is the wellness fitness room. Safety training is provided both in- house and by contracting for service. The City works through a broker and is provided insurance for general liability, automotive and workers compensation through the Service Expenditures By Category League of Minnesota Cities Insurance Trust. ®Personal Services Service Expenditure Highlights ®Supplies&Materials No major changes planned for Budgeted 2025. Workers Comp premium and commercial insurance increased in Current 2024. DOther Services/Charges OPurchased Services Actual Current Budgeted Performance Measures 2023 2024 2025 Workers Comp Mod Factor 0.80 0.80 0.96 Commercial Insurance Change 14.3% 3.6% -1.3% Actual Current Budgeted Expenditures Per Capita 2023 2024 2025 Population- Estimates 33,089 33,321 33,554 Monthly $ 1.76 $ 1.78 $ 1.85 Annual $ 21.06 $ 21.35 $ 22.21 --------------- ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA 181 This page left blank intentionally. 182 CITY OF ANDOVER Budget Year 2025 Operating Transfers Transfer In Transfer Out Amount Purpose General Fund Water EF $ 81,662 Admin allocation General Fund Sewer EF 77,652 Admin allocation General Fund Storm Sewer EF 17,866 Admin allocation 2012C GO Abatement Bonds DSF Community Center SRF 300,000 Debt service allocation 2018A GO Capital Improvement Plan Bonds DSF Water EF 22,650 Debt service allocation 2018A GO Capital Improvement Plan Bonds DSF Sewer EF 22,650 Debt service allocation 2019A GO Taxable Abatement Bonds DSF Park Dedication CPF 159,107 Debt service allocation 2021A GO Street Reconstruction Bonds DSF Road & Bridge CPF 200,000 Debt service allocation 2021A GO Street Reconstruction Bonds DSF Permanent Improvement Revolving CPF 150,000 Debt service allocation Water Trunk CPF Water EF 300,000 Replacement reserve Sewer Trunk CPF Sewer EF 400,000 Replacement reserve Road and Bridge CPF Right of Way Management/Utility SRF 10,100 Roadway degredation Water EF Water Trunk CPF 59,174 Plant Operations $ 1,800,861 183 CITY OF ANDOVER 2025 -2029 CIP Development Calendar Date Activitv Responsibility March 26,2024 Council adopts 2025 Budget Development Guidelines. City Council/Staff March 27,2024 Vehicle Purchasing Committee Review of CIP Equipment Vehicle Purchasing Committee April 15,2024 Draft 2025-2029 CIP Calendar. Finance April 15-May 3,2024 Prepare base CIP Sheets. Finance April 23,2024 2025-2029 Capital Improvement Plan Discussion City Council/Staff May 7,2024 CIP kick-off meeting with Department Heads to discuss CIP sheet content. (if Department Heads needed) May 7,2024 Projected cash flow statements prepared. Finance May 28,2024 City Council progress update and Council CIP priority discussion. City Council/Staff June 4,2024 All projects updated in CIP program. Department Heads June 5,2024 Review projects—new and shifts. Department Heads June 25,2024 City Council progress update and Council CIP priority discussion. City Council/Staff July-August,2024 Commission and Committee review. Admin/Department Heads July 3,2024 CIP project sheets completed. Department Heads July 5,2024 CIP project sheets staff initial review. Admin/Department Heads July 8,2024 Vehicle Purchasing Committee review of CIP equipment. Vehicle Purchasing Committee July 23,2024 City Council review of City Utilities projects. City Council/Staff August 2,2024 CIP project sheet staff final review. Admin/Department Heads August 2- 12,2024 Preparation of final draft of 2025-2029 CIP for Council Workshop. Finance August 27,2024 City Council review of draft 2025-2029 CIP. City Council/Staff September 6,2024 Publish Public Hearing Finance September 17,2024 City Council holds 2025-2029 CIP public hearing. City Council September 17,2024 City Council adopts 2025-2029 CIP. City Council 184 City of Andover, MN Capital Plan 2025 thru 2029 PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project# Priority 2025 2026 2027 2028 2029 Total Central Equipment Replacement-Service Truck#371 26-48800-01 1 65,000 65,000 Capital Equipment Reserve 65,000 65,000 Replace unit#371,a 2001 Chevrolet S10 Ext Cab 44 truck with 154,716 miles. The replacement truck would be a crew cab with a tailgate lift. Central Equipment Total 65,000 65,000 �Community Center Replacement-Community Center Roof 25-44000-01 1 1,000,000 1,000,000 2,000,000 Comm Cir Operations 1,000,000 1,000,000 YMCA 1,000,000 1,000,000 Full roof replacement(rubber membrane).This will be a shared project with YMCA.City portion includes Ice Arena,Field House and a share of common space.YMCA will have pool,fitness and a share of common space.Reset and paint existing gas piping while roof is under construction Replacement-Kivac Cleaning Machine 25-44000-02 1 8,000 8.000 Comm Ctr Operations 8,000 8,000 Replace the current Kivac cleaning machine that is used in the bleachers,locker rooms and player boxes.It's an all in one power washer and wet vac system. Replacement-Carpeting 25-44300-01 1 15,000 15,000 Comm Ctr Operations 15,000 15,000 Replacement of carpet within the Andover Community Center. Replacement-East Parking Lot Pavement 26-44000-01 1 520,000 520,000 Comm Ctr Operations 130,000 130,000 YMCA 390,000 390,000 Reclaim and pave original parking lot on east side of the Community Center and the north and south drive lanes. Replacement-Generator 26-44000-02 1 50,000 50,000 Comm Ctr Operations 50,000 50,000 Replacement of the generator that provides emergency back up power to some of the vital systems within the facility. Repaint Ice Arena ceiling 26-44300-01 1 200,000 200,000 Comm Ctr Operations 200,000 200,000 Repaint the ice arena ceiling. Replacement-Ice Resurfacer 27-44300-02 1 190,000 190,000 185 Department Project# Priority 2025 2026 2027 2028 2029 Total Comm Ctr Operations 190,000 190,000 Replace unit#452,a 2004 Zamboni with 7,543 hours that provides ice maintenance. Replacement-Zamboni Battery Pack-Ion Machine 28-44300-01 1 15,000 15,000 Comm Ctr Operations 15,000 15,000 Replace the battery pack for the electric Zamboni. Machine#2. Community Center Total 1,023,000 1,770,000 190,000 15,000 2,998,000 En ineerin New Development Projects 25-41600-01 1 210,DD0 220,000 230,000 240,000 25D,D00 1,150,000 Sewer Trunk Fund 140,000 145,000 150,000 155,000 160,000 750,000 Water Trunk Fund 70,000 75,000 80,000 85,000 90,000 400,000 New developments include the construction of sanitary sewer,water main,storm sewers and streets. Since the majority of the improvement projects are being privately installed by the developer,the following expenditures are the city's share for trunk water and sewer improvements. Pedestrian Trail Maintenance 25-41600-02 1 67,000 70,000 73,000 76,000 80,000 3667000 Road&Bridge Funds 67,000 70,000 73,000 76,000 80,000 366,000 This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system. New Pedestrian Trail and Sidewalk Segments 25-41600-03 1 1,890,000 1,120,000 3,010,000 Grant 250,000 250,000 Municipal State Aid Funds 290,000 290,000 Trail Funds 1,350,000 1,120,000 2,470,000 The City of Andover has an extensive trail and sidewalk system for pedestrians and bikers. Future planned trail and sidewalk connections provide key links within the existing system. The following segments are proposed to be constructed as funds become available: 2025:8'Bit Trail and Bridge along Coon Creek going east to the existing trail in the Shadowbrook development($800,000) 2025:8'Bit Trail on the south side of Crosstown Blvd from Xeon St to Prairie Road($800,000) 2025:5'Concrete Sidewalk along the south side of Bunker Lake Blvd from Crosstown Blvd to Yukon St($290,000 MSA Funding) 2026:8'Bit Trail and Boardwalk along Verdin St-161 st Ave to 163rd Lane($1,120,000) Replacement-GPS Antenna Survey Unit 25-41600-05 1 28,000 28,000 Capital Equipment Reserve 28,000 28,000 The GPS Antenna Survey Unit is needed to conduct engineering survey work for multiple projects throughout the year. Pedestrian/Park Trail Reconstruction 26-41600-01 1 500,000 500,000 General Fund 500,000 500,000 As the City's trail system ages and deteriorates,reconstruction of segments becomes necessary to maintain the high quality trail system that is so sought after in Andover. 2D26-Kelsey Round Lake Park Trail($500,000) Replacement-Chevrolet Tahoe#16 26-41600-07 1 65,000 65,000 Capital Equipment Reserve 65,000 65,000 Replace unit#16,a 2002 Chevy Tahoe with 136,155 miles to be replaced with a pick up truck. Replacement-Total Station Survey Equipment 28-41600-01 1 45,000 45,000 Capital Equipment Reserve 45,000 45,000 Total Station Survey Equipment is used for site surveys and construction surveying for street and park projects. 186 Department Project# Priority 2025 2026 2027 2028 2029 Total Engineering Total 2,195,000 1,975,000 303,000 361,000 330,000 5,164,000 �Facility Management Annual Parking Lot Maintenance/Replacement 25-41900-01 1 45,000 45,000 90,000 45,000 45,000 270,000 Facility Maint.-Building Fund 45,000 45,000 90,000 45,000 45,000 270,000 Yearly maintenance of the City parking lots is necessary to prolong the life of the pavements. Parking lots that need maintaining include those at the City Hall complex,Public Works,Community Center,at City parks,and at the Fire Stations. Yearly maintenance may include crack sealing,seal coating,mill and overlays or full depth reclamation. Maintenance will generally be completed with the street zones,or on an as needed basis. Parking lots also need to be reconstructed when they have exceeded the design life. Lots that are at that point are as follows: 2025-2029 Miscellaneous Crack Sealing&Pavement Sealant($45,000 per year) 2027-Fire Station 3 Full Depth Reclaimation 2026-2029 Parking Lots TBD City Hall Remodel 25-41900-02 1 100,000 100,000 Facility Maint.-Building Fund 100,000 100,000 Remodel/update City Hall. Phase 2: Update offices and cubicle areas. Replacement-Emergency Generator FS#2 25-41900-03 1 35,000 35,000 Facility Maint.-Building Fund 35,000 35,000 Replace the emergency generator and transfer switch at Fire Station#2. Replacement-Mini Split Unit QCTV 25-41900-04 1 6,500 6,500 Capital Equipment Reserve 6,500 6,500 Replace mini split unit that cools the QCTV control room. Replacement-Water Heater ASN 25-41900-05 1 5,000 5,000 Facility Maint.-Building Fund 5,000 5,000 Replace gas hot water heater at Andover Station North building. Replacement-Fan Coil Unit ASN 25-41900-06 1 6,500 6,500 Facility Maint.-Building Fund 6,500 6,500 Replace existing Mitsubishi fan coil unit. Replacement-Garage Door Springs FS#2 25-41900-07 1 18,000 18,000 Facility Maint.-Building Fund 18,000 18,000 Replace garage door springs on all 3 overhead doors at Fire Station 42. Replacement-Salt Shed Roof 26-41900-01 1 30,000 30,000 Facility Maint.-Building Fund 30,000 30,000 Replacement of the fabric roof cover of the 60'x 70'salt shed. Replacement-Emergency Generator FS#3 26-41900-02 1 50,000 50,000 Facility Maint.-Building Fund 50,000 50,000 Replace the emergency generator at Fire Station#3. Replacement-Fire Sprinkler System CH 28-41900-01 1 50,000 50.000 187 Department Project# Priority 2025 2026 2027 2028 2029 Total Facility Maint.-Building Fund 50,000 50,000 Replace the fire sprinkler system at City Hall. Replacement-Fire Sprinkler System FS#1 28-41900-02 1 50,000 50,000 Facility Maint.-Building Fund 50,000 50,000 Replace the sprinkler system at Fire Station#1. Replacement-Fire Sprinkler System PW 28-41900-03 1 50,000 50,000 Facility Maint.-Building Fund 50,000 50,000 Replace the fire sprinkler system at Public Works. Replacement-Carpet/Tile 29-41900-01 1 30,000 30,000 Facility Maint.-Building Fund 30,000 30,000 The replacement of carpet and/or tile in appropriate areas of all City buildings where deemed necessary. An annual review of all areas will be done to determine the order of replacement. Facility Management Total 216,000 125,000 90,000 195,000 75,000 701,000 Fire Replacement-800 MHz Radios 25-42200-01 1 50,000 50,000 Capital Equipment Reserve 50,000 50,000 The current 800 MHz handheld and mobile radios used by the Fire Department and Public Works are no longer manufactured. In addition,the service support for maintenance and repairs is no longer available. The Fire Department has 37 handheld radios and 16 mobile radios mounted in vehicles or used as base-stations at the fire stations. Public Works has 6 handheld radios that can be used to contact public safety agencies on the 800 MHz frequency. Replacement-Grass&Rescue Vehicle 25-42200-02 1 335,000 335,000 Capital Equipment Reserve 335,000 335,000 Replace unit#31,a 1991 Ford F350 4 x 4 grass vehicle with 24,063 miles and replace a rescue vehicle to be determined in 2025. Replacement-Thermal Image Cameras 25-42200-03 1 35,000 35,000 Capital Equipment Reserve 35,000 35,000 Replacement of current Thermal Image Cameras(TICs). Replacement-Rescue 21#4819 26-42200-01 1 350,000 350,000 Capital Equipment Reserve 350,000 350,000 Replace unit#4819,a 2007 Chevrolet 3500 Crew Cab Truck with 17,595 miles. Replacement-Grass Utility Vehicle(UTV)#4813 26-42200-02 1 72,000 72,000 Capital Equipment Reserve 72,000 72,000 Replace unit#4813,a Polaris 6 x 6 with 153 miles that is used for wildland fires. Replacement-GMC Sierra#4826 27-42200-01 1 70,000 70,000 Capital Equipment Reserve 70,000 70,000 Replace unit#4826,a 2015 GMC Sierra Double Cab truck with 35,071 miles. Replacement-Ford Interceptor#4827 27-42200-02 1 75,000 75,000 Capital Equipment Reserve 75,000 75,000 Replace unit#4827,a 2015 Ford Interceptor SUV with 47,384 miles. New-3 Combination Extrication Tools 27-42200-03 1 51,000 51,000 188 Department Project# Priority 2025 2026 2027 2028 2029 Total Capital Equipment Reserve 51,000 51,000 3 Cordless Combination Extrication cutter/spreader tools. New-Health/Wellness Workout Equipment 27-42200-04 1 19,500 19,500 Capital Equipment Reserve 19,500 19,500 Purchase of various health/wellness workout equipment for the fire stations to include,but not limited to;kettle bell sets,eliptical machines,rowing machines,echo bikes,and other miscellaneous equipment. Replacement-Engine 11#4821 28-42200-01 1 1,000,000 1,000,000 Equipment Bond 1,000,000 1,000,000 Replace unit#4821,a 2010 Pierce Velocity Pumper with 48,960 miles. This truck carries 750 gallons of water and has a 1,200GPM pump. Replacement-Tanker 21#4808 28-42200-02 1 550,000 550,000 Equipment Bond 550,000 550,000 Replace unit#4808,a 2002 Sterling tanker with 13,383 miles and a 2,500 gallon tank with a 750 GPM pto pump. New-Forcible Entry Prop 29-42200-01 1 10,000 10,000 Capital Equipment Reserve 10,000 10,000 This prop will allow firefighters to have a reusable and realistic tool to practice the various ways to gain access via secured doors to initiate fire suppression and life-saving activities. Fire Total 420,000 422,000 215,500 1,550,000 10,000 2,617,500 Information Technology Replacement-HPE VMWare Server Hosts 25-41420-01 1 20,000 20,000 Capital Equipment Reserve 20,000 20,000 Replace current GEN9 servers(Qty 2)with GEN servers. They are used for hosting the VMWare environment. Replacement-Watchfire Sign City Hall 26-41420-01 3 50,000 50,000 Facility Maint.-Building Fund 50,000 50,000 Replace aging watchfire sign at city hall location with new 10mm sign. Replacement-Fiber between City Hall&PW 26-41420-02 2 15,000 15,000 Facility Maint.-Building Fund 15,000 15,000 Remove and replace aging multimode fiber with new singlemode fiber. Information Technology Total 20,000 65,000 85,000 Park&Rec- Operations Replace/Repair Play Structures-Various Parks 25-45000-01 1 200,000 200,000 200,000 200,000 200,000 1,000,000 General Fund 200,000 200,000 200,000 200,000 200,000 1,000,000 189 Department Project# Priority 2025 2026 2027 2028 2029 Total The parks listed are in need of replacing the existing playground equipment and;in some cases,improving the fall zones to meet ADA accessibility requirements. History has shown that the life expectancy of these play structures has been around 15 years then replacement is needed due to the structure condition. The proposed playground equipment improvements/rebuilds are as follows: 2025-Country Oaks Park,Red Oaks West Park,and Hidden Creek South Park 2026-Fox Meadows Park,Creekview Crossing Park,and Andover Station North Park. 2027-Meadows of Round Lake Park,Oak Bluff Park.and Woodland Crossing Park 2028-Meadowood North Park,Sophie's South Park,and Timber Trails Park 2029-Nordeen's Park,Hickory Meadows Park,and Pleasant Oaks Park Replace/Repair Major Park Projects-Various Parks 25-45000-02 1 35,000 35,000 35,000 35,000 35,000 175,000 General Fund 35,000 35,000 35,000 35,000 35,000 175,000 Future Projects: Fence rebuilds at various parks,shelter replacements,parking lot and interior park trail reconstuction Replacement-Sunshine Park Parking Lot 25-45000-04 1 50,000 130,000 180,000 Facility Maint.-Building Fund 50,000 130,000 180,000 Reclaim and pave the south and west lot and replace miscellaneous concrete curb sections at Sunshine Park. 2025 South Parking Lot($50,000) 2027 West Parking Lot($130,000) Replacement-One Ton Truck w/Plow#577 26-45000-01 1 110,000 110,000 Capital Equipment Reserve 110,000 110,000 Replace unit#577,a 2007 Ford F450 4x4 wl plow and 78,469 miles. Replacement-Toro Zero-Turn Mower#09-592 27-45000-03 1 17,000 17,000 Capital Equipment Reserve 17,000 17,000 Replace unit#09-592,a 2009 Toro G3 zero-turn mower with 1,643 hours. Replacement-Truckster#548 27-45000-04 1 15,000 15,000 Capital Equipment Reserve 15,000 15,000 Replace unit#548,a 1998 Truckster with 5,777 hours. Replacement-Toro Groundsmaster#564 27-45000-05 1 80,000 80,000 Capital Equipment Reserve 80,000 80,000 Replace unit#564,a 2007 Toro Groundsmaster 328-D 4WD with 1,257 hours. Replacement-Karcher#17-587 27-45000-06 1 220,000 220,000 Capital Equipment Reserve 220,000 220,000 Replace unit#17-587,a 2017 Karcher M I C 84 trail machine with 1,500 hours.. Replacement-One Ton Truck w/Plow#13-501 28-45000-03 1 110,000 110,000 Capital Equipment Reserve 110,000 110,000 Replace unit#13-501,a 2013 Chevrolet 3500 w/lift gate,4x4,& plow with 60,733 miles. Replacement-Toro Workman#566 29-45000-03 1 15,000 15,000 Capital Equipment Reserve 15,000 15,000 Replace unit#566,a 2004 Toro Workman with 831 hours. Park&Ree-Operations Total 285,000 345,000 697,000 345,000 250,000 1,922,000 190 Department Project# Priority 2025 2026 2027 2028 2029 Total Park&Rec-Projects Annual Miscellaneous Park Projects 25-45001-01 1 25,000 25,000 25,000 25,000 25,000 125,000 Park Dedication Funds 25,000 25,000 25,000 25,000 25,000 125,000 This is for unforeseen or requested miscellaneous projects that may arise during the year that is requested by the public,staff,City Council or the Park and Recreation Commission each year. Fields of Winslow Cove-New Park 25-45001-03 1 170,000 170,000 Park Dedication Funds 170,000 170,000 Installation of a new park and playground in the Fields of Winslow Cove Development. Sunshine Park Basketball Court Improvements 25-45001-04 1 65,000 65,000 Park Dedication Funds 65,000 65,000 Improvements to the existing asphalt basketball court.Improvements would include sport court surfacing with lines,improved backboards,and perimeter fencing. Anoka County Dog Park Improvements 25-45001-05 1 25,000 25,000 Park Dedication Funds 25,000 25,000 Install chain-link fence around dog park(2025). Oakview Park Improvements 26-45001-02 1 20,000 20,000 Park Dedication Funds 20,000 20,000 Addition of irrigation and trees to Oakview Park as identified in the Park Dedication Study. Kelesy Round Lake Park Master Plan Additions 26-45001-03 1 230,000 230,000 Park Dedication Funds 230,000 230,000 Kelsey Round Lake Park has several items to be completed from the approved master plan for the park.Items include a building with bathrooms,interpretive signs,wayfinding signs,and multiple other items which will need to be determined. The design costs are included with the cost of the building. Skate Park Expansion&Improvements 26-45001-04 1 125,000 125,000 Park Dedication Funds 125,000 125,000 The skate park sees heavy use and is identified in the Park Dedication Study for expansion.Along with expansion,improving the aging equipment to maintenance free concrete and steel features.Much of the equipment is near end of life and will need to be replaced soon. Permanent concrete features could be constructed on the current pad during the expansion to replace the wood and steel ramps currently in place. Sunshine Parking Lot Lighting,West&South Lots 26-45001-05 1 30,000 30,000 Park Dedication Funds 30,000 30,000 Addition of parking lot lighting to the west and south parking lots at Sunshine Park,as identified in the Park Dedication Study. Project year should be adjusted to correspond with the parking lot paving projects. Pave Hawkridge Parking Lot 26-45001-06 1 150,000 150 000 Park Dedication Funds 150,000 150,000 Pave the 70,000 sq ft gravel parking lot at Hawkridge Park. Park Improvements-Zone A TBD 27-45001-02 1 150,000 150,000 Park Dedication Funds 150,000 150,000 Zone A park improvement projects TBD. Pine Hills North Master Plan Additions 27-45001-03 1 100,000 100,000 Park Dedication Funds 100,000 100,000 Pine Hills North Park has several improvements identified in the approved Master Plan for the park.Items will need to be discussed and determined in the CIP discussions in 2025 or 2026. 191 Department Project# Priority 2025 2026 2027 2028 2029 Total Pave Timber Trails Parking Lot 27-45001-04 1 52,000 52.000 Park Dedication Funds 52,000 52,000 Pave the gravel 14,000 sq it parking lot at Timber Trails Park including the addition of two security lights. Zone D Projects TBD 28-45001-02 1 100,000 100.000 Park Dedication Funds 100,000 100,000 Zone D park improvement projects TBD. Pleasant Oaks Park Sidewalk 28-45001-03 1 4,000 4,000 Park Dedication Funds 4,000 4,000 Sidewalk addition from the street to the playground at Pleasant Oaks Park would create ADA accessibility to the playground.The playground is scheduled for replacement or refurbishment in 2028 and would correllate with this project. Parking Lot Improvements TBD 29-45001-02 1 100,000 100,000 Park Dedication Funds 100,000 100,000 Paving of the gravel park parking lot.Lots to be evaluated and TBD as we get closer to 2029. Zone C Improvements TBD 29-45001-03 1 150,000 150,000 Park Dedication Funds 150,000 150,000 Zone C park improvement projects TBD. Park&Rec-Projects Total 285,000 580,000 327,000 129,000 275,000 1,596,000 �Sanitary Sewer Upgrade Controls at Sanitary Lift Stations 25-48200-02 1 10,000 10,000 Sanitary Sewer Fund 10,000 10,000 Upgrade the sanitary lift station logic controls at lift stations 1,5,6,8 and 9. Sanitary Sewer Lift Station Pump Replacement 25-48200-03 1 100,000 60,000 160,000 Sanitary Sewer Fund 100,000 60,000 160,000 Pump replacement at sanitary sewer lift stations. Rural Reserve-Area Analysis&Sanitary Sewer 26-48200-01 1 5,000,000 5,000,000 Assessments 2,000,000 2,000,000 Sewer Revenue Bonds 3,000,000 3,000,000 In 2025 complete the evaulation of future development in the rural reserve related to development planning,traffic impact,water and sanitary sewer system analysis,and storm water management and surface water(budgeted in 2024). 2026 includes the extension of trunk sanitary sewer from Bunker Lake Boulevard approximately parallel to Coon Creek to serve the Rural Reserve area. The sanitary sewer will be constructed through existing neighborhoods and along South Coon Creek Drive then north into the Rural Reserve Area. It is anticipated that the extension through the Rural Reserve may be constructed the following year,or as the market demands. Crosstown Trunk Line-Clean&Assess 26-48200-02 1 80,000 80,000 Sewer Trunk Fund 80,000 80,000 Clean and televise the Crosstown trunk line from Andover Blvd south to Bunker Lake Blvd along with the assessment of lining in the pipe. Crooked Lake Blvd Sanitary Sewer Lining Project 26-48200-03 1 1,000,000 1,000,000 Sewer Trunk Fund 1,000,000 1,000,000 The sanitary sewer line on Crooked Lake Blvd was televised and found to have pipe deterioration do to H2S. It will need to be lined with a cure-in-place pipe to rehabilitate the pipe to prevent a major pipe failure in the future. Replacement-One Ton Truck w/Plow#13-094 27-48200-01 1 110,000 110,000 192 Department Project# Priority 2025 2026 2027 2028 2029 Total Sanitary Sewer Fund 110,000 110,000 Replace unit#13-094,a 2013 Chevrolet 3500 truck w/plow and 93,444 miles. Replacement-1/2 Ton Truck#13-091 28-48200-01 1 70,000 70,000 Sanitary Sewer Fund 70,000 70,000 Replace unit#13-091,a 2013 G M C 1/2 ton ext cab pickup with tool boxes and 103,846 miles. Sanitary Sewer Total 110,000 6,080,000 170,000 70,000 6,430,000 Storm Sewer Storm Sewer Improvements 25-48300-01 1 73,000 74,000 75,000 76,000 77,DDD 375,000 Storm Sewer Fund 73,000 74,000 75,000 76,000 77,000 375,000 Each year,areas of the City are identified where improvements are required to maintain our storm sewer system. Maintenance items include replacement of failing culverts, catch basins,and storm sewer pipes;erosion issues at storm sewer outfalls,and dredging of ponds and ditches. Replace-Street Sweeper#171 26-48300-02 1 370,000 370,000 Storm Sewer Fund 370,000 370,000 Replace unit#171,a 2006 Tymco street sweeper with 57,000 miles. Replacement-Compact Excavator#96 29-48300-01 2 57,000 57,000 Storm Sewer Fund 57,000 57,000 Replace unit#96,a 1997 Takeuchi mini excavator with 1,198 hours. Storm Sewer Total 73,000 444,000 75,000 76,000 134,000 802,000 Streets-Equipment Replacement-Sign Truck#08-408 25-43100-01 1 100,000 100.000 Capital Equipment Reserve 100,000 100,000 Replace unit#08-408,a 2008 Ford F450 sign truck with 96,195 miles with a 1/4 ton pickup truck with a utility service box. Replacement-One Ton Truck w/Plow#134 25-43100-02 1 110,000 110,000 Capital Equipment Reserve 110,000 110,000 Replace unit#134,a 2004 F450 one-ton truck w/plow and 101,087 miles. Replacement-Dump Truck w/Snow removal#201 26-43100-01 1 350,000 350,000 Equipment Bond 350,000 350,000 Replace unit#201,a 2000 Sterling dump truck w/snow removal equipment and 61,931 miles. Replacement-Dump Truck w/Snow removal#202 26-43100-02 1 350,000 350,000 Equipment Bond 350,000 350,000 Replace unit#202,a 2002 Sterling dump truck w/snow removal equipment and 61,746 miles. Replacement-1 Ton Truck w/Plow#13-102 27-43100-01 1 100,000 100,000 Capital Equipment Reserve 100,000 100,000 Replace unit#13-102,a 2013 Chevrolet 3500 truck w/plow and 54,979 miles. Replacement-Chevrolet Colorado#101 27-43100-02 1 60,000 60,000 Capital Equipment Reserve 60,000 60,000 193 Department Project# Priority 2025 2026 2027 2028 2029 Total Replace unit#101,a 2004 Chevrolet Colorado with 138,356 miles. Replacement-Dump Truckw/Snow removal#203 28-43100-01 1 370,000 370,000 Equipment Bond 370,000 370,000 Replace unit#203,a 2002 Sterling dump truck w/snow removal equipment and 70,476 miles. Replacement-Dump Truckw/Snow removal#204 28-43100-02 1 370,000 370,000 Equipment Bond 370,000 370,000 Replace unit#204,a 2006 Sterling L8500 dump truck w/snow removal equipment and 35,688 miles. Replacement-Aerial bucket truck#00-139 29-43100-01 1 200,000 200,000 Capital Equipment Reserve 200,000 200,000 Replace unit#00-139,a 2001 Ford F550 aerial bucket truck with 29,035 miles. Streets-Equipment Total 210,000 700,000 160,000 740,000 200,000 2,010,000 Streets-Roadways Annual Street Crack Seal Project 25-49300-01 1 160,000 160,000 160,000 160,000 16D,000 8007000 Construction Seal Coat Fund 10,000 10,000 10,000 10,000 10,000 50,000 Road&Bridge Funds 150,000 150,000 150,000 150,000 150,000 750,000 This project provides for crack sealing of the streets. In general,each year one of the nine full zones in the City is crack sealed. Areas nearing reconstruction,those seal coated recently to hold together,or with severe cracking are excluded from this project as determined by the Engineering and Public Works Departments. Annual Pavement Markings 25-49300-02 1 98,000 100,000 102,000 104,000 106,000 510,000 Road&Bridge Funds 98,000 100,000 102,000 104,000 106,000 510,000 The pavement striping for City streets is conducted one time per year. This includes centerline striping and shoulder striping. Striping enhances the safety of the roadway by directing traffic to the correct lane movement. The Federal Highway Administration is currently reviewing reflective standards for pavement markings. In the near future,the City may have to stripe twice per year to meet new standards. If this is approved,it will double the cost of pavement markings per year. Curb,Sidewalk and Pedestrian Ramp Replacement 25-49300-03 1 120,000 120,000 120,000 120,000 120,000 600.000 Road&Bridge Funds 120,000 120,000 120,000 120,000 120,000 600,000 Damaged and failing concrete curb and gutter throughout the City needs to be repaired or replaced to help maintain the integrity of the roadway system. Replacing damaged or failing sections of curb and gutter helps with drainage of the roadway and prolongs the life of the street system. Annual Street Reconstruction 25-49300-04 1 3,650,000 6,070,000 7,640,000 4,725,000 4,785,000 26,870,000 Assessments 912,500 1,517,500 1,910,000 1,181,250 1,196,250 6,717,500 G.O.Bond 2,737,500 4,552,500 7,290,000 Road&Bridge Funds 5,730,000 3,543,750 3,588,750 12,862,500 194 Department Project# Priority 2025 2026 2027 2028 2029 Total The Street Reconstruction projects consist of milling the existing street surface and constructing a new asphalt surface. In developments that have existing bituminous curb or no curb or ditch,concrete curb and gutter will be constructed. Storm sewer and drainage improvements will be incorporated as necessary.25%of the total project costs are assessed to the benefiting properties in each development. This program helps to maintain the integrity and value of the community's street infrastructure. The timing of reconstruction of developments more than two years out may be revised as street conditions and ratings are reviewed on an annual basis. Additional developments may be added to the schedule or projects moved up if it is advantageous to reconstruct them in conjunction with other nearby projects.Areas to be reconstructed are listed below. 2025:Xenia Street,Vintage Street,161st Avenue.Indian Meadows 4th&5th($3,650,000) 2026:159th Ln West of Nightingale,Quinn St,Swallow St,and Uplander St South of 161st Ave,Nightingale Ridge($2,455,000);Nightingale Preserve,Wittington Ridge ($1,480,000);Nightingale Estates,2nd,3rd($1,050,000);Leeman Lake Estates($265,000);Creekridge Estates north of S Coon Creek Dr($820,000) 2027:Development South of Bunker Lake Blvd,West of Croaked Lake,Chapmans 1st-6th,Woodland Terrace 1st-5th,Weises 1st,2nd,Boulder Estates($6,200,000);East Round Lake Estates,Kadlec Estates($1,440,000) 2028:Smith's Green Acres Area,Northwoods Add.,Northwoods Add.Plat 2,Creekhaven,Donohue Creekside Addition,Cunningham Add.($4,725,000) 2029:Red Oaks Mannor Add.2nd,3rd ($1,795,000);Kennsington Estates,2nd-7th,Shady Knoll Add.($2,425,000);Woodridge Acres,The Oaks($565,000) Municipal State Aid Routes/Mill&Overlay 25-49300-05 1 550,000 267,000 140,000 957,000 Assessments 137,500 66,750 10,000 214,250 Municipal State Aid Funds 41Z500 200,250 130,000 742,750 The City of Andover has a street mill and overlay program to prolong the life of the City's roadway infrastructure.The improvements include milling and overlaying 1.5"-2" on roadways that are indentified as still structurally sound as this process will significantly extend the roadways life cycle. The Engineering Department and Public Works have identified the MSA roads that meet the criteria. The timing of mill and overlay of developments more than two years out may be revised as street conditions and ratings are reviewed on an annual basis.Areas for mill and overlay are listed below. 2025: Wintergreen Street-1 61st Ave to north plat line of Country Oaks($190,000) 2025:Tulip Street-161st Ave to 169th Ln($360,000) 2026:Nothing Identified 2027:157th Avenue-Prairie Road to University Ave($267,000) 2028:Nothing Identified 2029:133rd St-Crosstown Blvd to Hanson Blvd($140,000) Assessments will be calculated at the time of project. Street Mill&Overlay 25-49300-06 1 985,000 85,000 885,000 1,265,000 1,245,000 4,465,000 Assessments 246,250 21,250 221,250 316,250 311,250 1,116,250 Road&Bridge Funds 738,750 63,750 663,750 948,750 933,750 3,348,750 195 Department Project# Priority 2025 2026 2027 2028 2029 Total The City of Andover has a street mill and overlay program to prolong the life of the City's roadway infrastructure.This program includes milling 1"to 1.5 off the existing pavement and overlaying approximately 1.5 of bituminous on roadways that are indentified as structurally sound as this process would significantly extend the roadways life cycle. The Engineering and Public Works Departments have identified roads that meet these criteria one year prior to the overlay project being constructed. The timing of mill and overlay of developments more than two years out may be revised as street conditions and ratings are reviewed on an annual basis.Areas for mill and overlay are listed below. 2025:Country Oaks West($180,000):Kadlec Add.,Oakwood Estates,White Oaks Country Estates,172nd Ave east of Hanson($805,000) 2026:Grow Oak view Estates($85,000) 2027:Cedar Creek Estates&2nd,Valley View Estates&2nd($885,000) 2028:Stacks Woods,Argon,Zuni,Yakima off 165th Ave NW($830,000):Silver Meadows West($145,000):Kiowa Terrace,Rum River Forest($290,000) 2029:Lakeridge,North Lakeridge Estates,Lakeside Estates($955,000):Andover Station North,B&D Estates 1st,2nd,Parkside at Andover Station,1 st,2nd,3rd,4th ($290,000) Gravel Road Improvements 25-49300-07 1 22,000 23,000 24,000 25,000 26,000 120,000 Road&Bridge Funds 22,000 23,000 24,000 25,000 26,000 120,000 Gravel roadways within the City are in need of annual improvements,including grading,adding material,and dust control. Over time and with snow plowing operations,the gravel roadway settles and additional material is needed to maintain the traveling surface. Municipal State Aid Routes/New&Reconstruct 25-49300-08 1 540,000 880,000 340,000 170,000 1,930,000 Assessments 135,000 220,000 85,000 42,500 482,500 Municipal State Aid Funds 405,000 660,000 255,000 127,500 1,447,500 The following projects are proposed to be constructed and/or rehabilitated to meet State Aid Standards. The timing of projects more than two years out may be revised as street conditions and ratings are reviewed on an annual basis. Projects indentified are listed below. 2025:Thrush Street-Bunker Lake Blvd to Crosstown Blvd($540,000) 2026:Crooked Lake Blvd-Bunker Lake Blvd to 133rd Avenue($880,000) 2027:174th Ln-Round Lake Blvd to Bittersweet St($340,000) 2028:177th Ln-East of Verdin St($170,000) 2029: Nothing Identified Intersection Upgrades 25-49300-09 1 4,000,000 2,000,000 2,000,000 8,000,000 Assessments 750,000 750,000 County Reimbursement 190,000 200,000 390,000 Federal Funds Z937,600 1,600,000 4,537,600 Municipal State Aid Funds 872,400 1,250,000 200,000 2,322,400 The following projects identified for improvements and the timing for such project is dependent on HSIP funding. Both intersections have received HSIP grant funding. 2025-Roundabout Construction Crosstown Blvd and Nightingale and Nightingale and Veterans Memorial Blvd($3,800,000) 2025-Roundabout Design at Crosstown Blvd and Bluebird Street($200,000) 2026-Roundabout Construction at Crosstown Blvd and Bluebird Street($1,800,000) 2026-Roundabout Design at Crosstown Blvd&Crosstown Drive($200,000) 2028-Roundabout Construction at Crosstown Blvd&Crosstown Drive($2,000,000) Street Full Depth Reclamation 25-49300-10 1 2,831,000 2,690,000 265,000 2,750,000 4,420,000 12,956,000 Assessments 707,750 672,500 66,250 687,500 1,105,000 3,239,000 196 Department Project# Priority 2025 2026 2027 2028 2029 Total Road&Bridge Funds 2,123,250 2,017,500 198,750 2,062,500 3,315,000 9,717,000 Full Depth Reclamation is a cost effective alternate to a full reconstruction.The entire thickness of asphalt and a portion of the base material is uniformly pulverized and blended to provide strengthened stabilization of the roadway base prior to repaving.This is done where curb and gutter are still in good condition,but the asphalt is too far deteriorated for a partial depth mill and overlay. The timing of full depth reclamation of developments more than two years out may be revised as street conditions and ratings are reviewed on an annual basis.Projects identifed are listed below. 2025:Indian Meadows,Fox Meadows,Old Valley Drive($1,471,000)Remaining portion of Meadows of Round Lake($900,000):Pine Hills Add.($460,000) 2026:173rd Ave,Navajo St,175th Ave loop east of Roanoke St NW($490,000):Birchwood Pond($180,000):Old Constance Blvd($240,000):Northglen 2nd,4th,5th, Woodland Pond,138th West of Round Lakem Round Lake Blvd Frontage Rd($1,780,000) 2027:Wobegon Woods,Good Ridge Acres($265,000) 2028:Countryview Estates,Hawk Ridge,Hawk Ridge East($2,750,000) 2029:Kensington Estates($240,000):Hidden Creek,2nd,3rd,Bent Creek Shores,Hidden Creek East,2nd,3rd,4th,5th($2,955,000):Emerald Glen,Pleasant Meadows, Sunridge,Echo Woods,Kirby Estates($1,225,000) Pavement Rejuvenator Application 25-49300-11 1 175,000 175,000 175,000 175,000 175,000 875,000 Road&Bridge Funds 175,000 175,000 175,000 175,000 175,000 875,000 Application of a rejuvenating agent to newer pavement.Application is designed to extend the life of pavement by densifying and sealing the pavement from the elements. Bunker Lake Blvd Traffic Signal Improvements 25-49300-12 1 750,000 750,000 Municipal State Aid Funds 750,000 750,000 Anoka County Highway Department is making improvements to traffic signals along Bunker Lake Blvd from Jay Street to Rose Street. Streets-Roadways Total 13,881,000 12,303,000 9,978,000 11,494,000 11,177,000 58,833,000 Water Replacement-Residential Meters 25-48100-01 1 100,000 100,000 100,000 100,000 100,000 500.000 Water Fund 100,000 100,000 100,000 100,000 100,000 500,000 Annual residential meter replacement program to replace the oldest meters on the system.The old technology meters will be replaced with Smart iPerl meters currently being used in the system. Water Main Gate Valve Rehabilitation 25-48100-02 1 50,000 50,000 50,000 50,000 50,000 250,000 Water Trunk Fund 50,000 50,000 50,000 50,000 50,000 250,000 The City has found failing nuts and bolts on a certain type of gate valve that were installed before 2004. Not all types of valves have had failures. The City evaluates each development area for the nut and bolt condition prior to a full street reconstruction or mill and overlay. Rehabilitation of Wells 25-48100-03 1 140,000 90,000 100,000 330,000 Water Fund 140,000 90,000 100,000 330,000 The motor,pump and column pipe are taken out for inspection and worn parts are replaced. The well is televised to determine the depth and condition. If the well is at or close to the original drill depth everything is put back in place. The well may need to be cleaned out to the original depth if there is a substantial decrease in the depth. WTP High Service Pump Maintenance 25-48100-04 1 75,000 75,000 150,000 Water Fund 75,000 75,000 150,000 Service the high service motors and pumps in the WTP. Replacement-WTP Valve Actuators 25-48100-05 1 55,000 55,000 55,000 165,000 Water Fund 55,000 55,000 55,000 165,000 Replacement of 6-24"Backwash Valve Actuators. 197 Department Project# Priority 2025 2026 2027 2028 2029 Total Security Cameras at Towers and Well Houses 25-48100-07 1 12,000 12,000 24.000 Water Fund 12,000 12,000 24,000 Adding security cameras to monitor the building and property at towers and well houses. Replacement-WTP Flow Meters 25-48100-08 1 55,000 55.000 Water Fund 55,000 55,000 Replace flow meters for influent and effluent water at the WTP. Replacement-2003 Chevrolet S-10#77 25-48100-09 1 70,000 70,000 Water Fund 70,000 70,000 Replacement of unit#77,a 2003 Chevrolet S-10 with 88,714 miles. New-Backup Generator at Well#9 25-48100-10 1 165,0D0 165,000 Water Fund 165,000 165,000 Install a backup generator at well#9. New-Asphalt Patch Trailer 25-48100-11 1 30,000 30,000 Water Trunk Fund 30,000 30,000 Purchase a 3 yard capacity heated asphalt trailer with a hydraulic dump. Replacement-WTP SCADA System 25-48100-12 1 17,000 17,000 Water Fund 17,000 17,000 The computer and software that runs the operations of the water treatment plant is outdated and the software is now unsupported. Fire Hydrant Painting 25-48100-13 1 33,000 34,000 35,000 102,000 Water Fund 33,000 34,000 35,000 102,000 Sandblast and repaint the city's fire hydrants. Replacement-Radiant Heaters WTP Garage 26-48100-01 2 20,000 20,000 Water Fund 20,000 20,000 Replace the radiant heaters in water treatment plant garage as they have reached the end of there usefull life. Replacement-WTP HSP Room A/C 26-48100-02 1 80,000 80,000 Water Fund 80,000 80,000 Replace the 20 ton A/C unit that cools and keeps the air dry to protect all of the city's high service pumps that provide water to the system. Replacement-Well#3 Air Handler/Conditioner 26-48100-03 1 17,000 17,000 Water Fund 17,000 17,000 Air handler/conditioning equipment is needed to protect the motor control center and other electrical equipment in the well house. WTP Backwash pump maintenance 26-48100-04 1 80,000 80,000 Water Fund 80,000 80,000 The backwash pump at the Water Treatment Plant is main componnent in the water treatment process that cleans the filters when they become dirty. Replacement-WTP Make Up Air Unit 27-48100-01 1 35,000 35,000 Water Fund 35,000 35,000 Replace the make up air unit in the storage and parking garage at the WTP. Construct Water Treatment Plant#2 28-48100-01 1 10,000,000 10,000,000 Water Revenue Bonds 10,000,000 10,000,000 Construct Water Treatment Plant No.2 in the Shadowbrook Development. Replacement-Air Compessor 28-48100-02 1 20,000 20,000 198 Department Project# Priority 2025 2026 2027 2028 2029 Total Water Fund 20,000 20,000 The water treatment plant air compressor is used to operate all of the process valves in the plant. Construct Clearwell at WTP 29-48100-01 1 3,300,000 3,300,000 Water Revenue Bonds 3,300,000 3,300,000 Construct a 2 million gallon clearwell adjacent to the water treatment plant. Demolish 500,000 Gallon Water Tower 29-48100-02 1 350,000 350,000 Water Trunk Fund 350,000 350,000 Demolish the existing 500,000 gallon water tower located on the west side of town. Water Total 802,000 523,000 275,000 10,260,000 3,900,000 15,760,000 GRAND TOTAL 19,520,000 25,397,000 12,480,500 25,235,000 16,351,000 98,983,500 199 CITY OF ANDOVER Summary of Outstanding Bond Issues 2024-2025 Outstanding Outstanding Outstanding Date of Rate of at 2024 at 2025 at Description Issue Maturity Interest Issued 1 2/3112 0 2 3 Retired Issued 12/31/2024 Retired Issued 12/31/2025 Governmental Activities General Obligation Abatement Bonds 2012C G.O.Abatement Bonds 12/27/2012 2/1/2031 1.00-3.00% 17,315,000 8,645,000 (985,000) 7,660,000 (1,005,000) 6,655,000 2019A G.O.Abatement Bonds 8/1/2019 2/1/2040 3.00-5.00% 15,770,000 14,420,000 (600,000) 13,820,000 (630,000) 13,190,000 23,065,000 (1,585,000) 21,480,000 (1,635,000) 19,845,000 Certificates of Indebtedness/Capital Notes 2020A G.O.Equipment Certificates 3/19/2020 2/1/2024 4.00% 1,310,000 345,000 (345,000) - - 2021A G.O.Equipment Bonds 12/28/2021 2/1/2026 2.00% 630,000 480,000 (155,000) - 325,000 (160,000) 165,000 2024A G.O.Equipment Bonds 12/30/2024 2/1/2028 5.00% 1,155,000 - 1,155,000 1,155,000 1,155,000 Subtotal-Certificates of Indebtedness 825,000 (500,000) 1,155,000 1,480,000 (160,000) 1,320,000 Capital Improvement Bonds 2018A G.O.Capital Improvement Plan Bonds 12/27/2018 2/1/2044 3.00-5.00% 10,000,000 9,370,000 (300,000) 9,070,000 (315,000) 8,755,000 Street Reconstruction Bonds 2021 A G.O.Street Reconstruction Bonds 12/28/2021 2/1/2030 1.00-2.00% 7,135,000 6,310,000 (855,000) - 5,455,000 (870,000) 4,585,000 2024A G.O.Street Reconstruction Bonds 12/30/2024 2/1/2035 4.00-5.00% 7,440,000 - 7,440,000 7,440,000 7,440,000 6,310,000 (855,000) 7,440,000 12,895,000 (870,000) 12,025,000 TOTALS $39,570,000 $ (3,240,000) $ 8,595,000 $44,925,000 $ (2,980,000) $ $41,945,000 Business-Type Activities General Obligation Revenue Bonds 2009A G.O.Water Revenue Bonds 3/26/2009 2/1/2024 2.00-4.25% 1,025,000 85,000 (85,000) Subtotal-General Obligation Bonds TOTALS $ 85,000 $ (85,000) $ - $ - $ $ $ - TOTALS $39,655,000 $ (3,325,000) $ 8,595,000 $44,925,000 $ (2,980,000) $ $41,945,000 200 CITY OF ANDOVER Debt Service Summary Total Less 2025 2026 2027 2028 2029 2030-2034 2035-2039 2040-2044 Payments Interest Total Governmental Activities General Obligation Abatement Bonds 2012C G.O.Abatement Bonds $ 1,209,356 $ 1,208,275 $ 1,205,250 $ 1,205,147 $ 1,212,675 $ 2,431,400 $ 8,472,103 $ (812,103) $ 7,660,000 2019A G.O.Abatement Bonds 1,106,900 1,104,650 1,105,775 1,100,275 1,106,850 5,531,175 5,525,700 1,106,350 17,687,675 (3,867,675) 13,820,000 2,316,256 2,312,925 2,311,025 2,305,422 2,319,525 7,962,575 5,525,700 1,106,350 26,159,778 (4,679,778) 21,480,000 Certificates of Indebtedness 2021A G.O.Equipment Bonds 164,900 166,650 331,550 (6,550) 325,000 20214 G.O.Equipment Bonds 33,848 413,625 414,875 415,125 1,277,473 (122,473) 1,155,000 198,748 580,275 414,875 415,125 - - - - 1,609,023 (129,023) 1,480,000 Capital Improvement Bonds 2018A G.O.CIP Bonds 618,881 622,631 620,506 626,206 624,956 3,114,781 3,102,784 3,100,431 12,431,178 (3,361,178) 9,070,000 Street Reconstruction Bonds 2021A G.O.Street Recon Bonds 945,260 942,710 944,810 951,135 946,395 945,640 5,675,950 (220,950) 5,455,000 2024A G.O.Street Recon Bonds 207,513 904,925 935,175 933,175 934,550 4,651,900 933,300 9,500,538 (2,060,538) 7,440,000 1,152,773 1,847,635 1,879,985 1,884,310 1,880,945 5,597,540 933,300 - 15,176,488 (2,281,488) 12,895,000 $ 4,286,658 $ 5,363,466 $ 5,226,391 $ 5,231,063 $ 4,825,426 $ 16,674,896 $ 9,561,784 $ 4,206,781 $ 55,376,467 $ (10,451,467) $ 44,925,000 201 CITY OF ANDOVER Computation of Legal Debt Margin December 31, 2024 (Unaudited) Estimated Taxable Market Value(Note A) $ 4,943,775,451 Debt Limit: 3%of Market Value 148,313,264 Total Bonded Debt $ 44,925,000 Less: Non-Tax Levy Supported Debt: (Note B) G.O. Revenue Bonds - Total Debt Applicable 44,925,000 Less: Balance Available in Related Debt Service Funds 3,607,267 Net Debt Applicable 41,317,733 Legal Debt Margin $ 106,995,531 Note A: Source: Anoka County Property Tax Division Note B: The computation on legal debt margin only includes debt supported by a tax levy. 202 CITY OF ANDOVER,MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Collected Within the Fiscal Year of Levy Total Market Value Collections In Total Collections to Date Tax Tax Homestead Total Percentage Subsequent Percentage Year Levy Levy Credit Collected of Levy Years Amount of Levy 2014 $10,843,925 $10,776,635 $ $10,776,635 99.38% $ 67,290 $10,843,925 100.00% 2015 11,143,925 11,054,157 11,054,157 99.19% 69,316 11,123,473 99.82% 2016 11,593,925 11,525,770 3,461 11,529,231 99.44% 22,980 11,552,211 99.64% 2017 11,939,555 11,858,376 3,545 11,861,921 99.36% 16,867 11,878,788 99.50% 2018 12,416,357 12,342,648 2,824 12,345,472 99.43% 5,762 12,351,234 99.48% 2019 13,103,487 12,974,413 3,960 12,978,373 99.05% 42,198 13,020,571 99.37% 2020 14,479,586 14,391,252 4,128 14,395,380 99.42% 30,842 14,426,222 99.63% 2021 14,913,945 14,853,700 3,578 14,857,279 99.62% 25,382 14,882,660 99.79% 2022 16,107,254 16,029,549 4,417 16,033,966 99.55% 19,583 16,053,549 99.67% 2023 17,073,084 16,980,523 3,682 16,984,205 99.48% Not Available CITY OF ANDOVER,MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Total Delinquent Collections Assessments Current Current Percent of Delinquent Total as a Percent of Outstanding as a Percent of Assessments Assessments Assessments Assessment Assessment Current Delinquent Current Year Due(1) Collected Collected Collections Collections Assessments Due Assessments Assessments Due 2014 $ 326,597 $ 387,651 118.69% $ 3,788 $ 391,439 119.85% $ 215,970 66.13% 2015 334,054 514,868 154.13% 4,003 518,871 155.33% 269,754 80.75% 2016 267,704 510,275 190.61% 2,153 512,429 191.42% 268,716 100.38% 2017 265,163 513,140 193.52% 212 513,352 193.60% 272,101 102.62% 2018 305,249 555,684 182.04% 412 556,096 182.18% 283,528 92.88% 2019 272,670 532,268 195.21% 1,579 533,847 195.79% 295,781 108.49% 2020 272,526 524,787 192.56% 5,684 530,471 194.65% 272,865 100.12% 2021 270,334 504,303 186.55% 8,024 512,327 189.52% 248,237 91.93% 2022 269,026 483,558 179.74% 6,925 490,483 182.32% 278,961 103.66% 2023 324,879 580,154 178.58% 3,856 584,010 179.76% 298,692 91.94% Note: (1) Only includes assessments certified to Anoka County. 203 CITY OF ANDOVER,MINNESOTA PRINCIPAL TAXPAYERS Current Year and Ten Years Ago (Unaudited) 2023 2014 Net Percentage of Net Percentage of Tax Total City Tax Total City Taxpayers Capacity Rank Tax Capacity Capacity Rank Tax Capacity Minnegaseo,Inc. $ 304,238 1 0.81% $ 211,244 1 0.96% Presbyterian Homes of Andover 251,795 2 0.67% 140,847 5 0.64% Connexus Energy 245,398 3 0.66% 193,140 3 0.88% Wal-Mart 186,388 4 0.50% Arbor Oaks Senior Living Realty 181,781 5 0.49% Target Corporation 166,692 6 0.45% 160,048 4 0.73% Andover Limited Partnership 147,260 7 0.39% 117,528 6 0.53% Great River Energy 142,857 8 0.38% 194,038 2 0.88% Andover Station 2016 LLC 120,860 9 0.32% 97,182 7 0.44% PC Arbor Oaks LLC 120,330 10 0.32% DST Properties LLC 91,678 8 0.37% Fairbanks Properties LLC 65,926 9 0.30% Columbia Park Properties 59,878 10 0.27% Total $ 1,867,599 4.99% $ 1,321,509 6.00% Net Tax Capacity $ 37,366,775 $ 21,978,322 Source: Anoka County Property Tax Division CITY OF ANDOVER,MINNESOTA ESTIMATED MARKET VALUES AND NEW CONSTRUCTION Last Ten Fiscal Years (Unaudited) Estimated Market Values New Construction Commercial/ Commercial/Industrial Residential Year Industrial(1) Residential Total Permits Value Permits Value 2014 $166,531,500 $2,103,536,600 $ 2,270,068,100 14 $ 4,285,281 52 $13,926,901 2015 173,717,700 2,435,950,500 2,609,668,200 16 2,513,609 74 19,631,775 2016 191,926,900 2,530,046,700 2,711,973,600 7 14,009,200 111 29,993,036 2017 196,837,900 2,610,055,500 2,806,893,400 - 94 27,847,717 2018 207,569,200 2,908,606,300 3,116,175,500 2 2,860,000 60 19,703,857 2019 214,417,500 3,057,490,800 3,271,908,300 2 3,901,376 116 37,258,817 2020 228,402,926 3,332,915,773 3,561,318,699 - 139 45,464,139 2021 235,297,000 3,450,673,800 3,695,960,800 - 141 43,949,250 2022 226,699,000 3,731,908,100 3,958,607,100 3 6,983,400 103 55,992,019 2023 244,378,800 4,635,315,300 4,879,694,100 3 22,344,000 64 21,454,269 Note: (1)Also includes agricultural,public utility,railroad operating property,and personal property. 204 CITY OF ANDOVER,MINNESOTA DEMOGRAPHICS (Unaudited) Percent U.S.Census of Change 2010 2020 2023 Est(1) 2010-2020 Population 30,598 32,601 32,460 6.55% Households 9,811 10,782 10,969 9.90% Household Size(Population/Household) 3.12 3.02 2.96 -3.05% POPULATION DEMOGRAPHICS(2020 U.S.CENSUS) Populaton by Age(2020 U.S.Census): Persons Percent 9 and under 4,564.00 14% 10-19 4,890.00 15% 20-29 3,260.00 10% 30-39 3,912.00 12% 40-49 4,564.00 14% 50-59 4,890.00 15% 60-69 3,587.00 11% 70-79 1,956.00 6% 80 and over 978.00 3% 32,601 100% Total female population 16,301 Total male population 16,300 2022 median age 39.3 City of Anoka State of United Andover County Minnesota States Income Statistics: 2022 per capita income $ 49,978 $ 43,106 $ 44,947 $ 41,261 2022 median household income 123,054 95,782 74,313 75,149 2022 median family income 131,576 110,651 107,072 92,646 2022 median gross rent 1,713 1,356 1,178 1,268 2022 median value owner occupied housing 370,200 302,300 286,800 281,900 (1) Source: Metropolitan Council 205 CITY OF ANDOVER,MINNESOTA MISCELLANEOUS STATISTICAL DATA (Unaudited) Date incorporated 1974 Form of government Plan A Miles of streets City 206 County 43 Storm sewer(miles) 86 Water main(miles) 125 Sanitary sewer(miles) 105 Parks: Number 68 Developed acreage 631 Trails(miles) 41 Acreage: Developed 9,558 Undeveloped 12,734 Largest Employers in the City Number of Firm Type of Business/Product Employees ISD No 11 Anoka-Hennepin Elementary and secondary education 816 Walmart Retail 335 Fairview Andover Clinic Healthcare 300 Anoka County Sheriffs Office County government and services 250 Kottkes'Bus Service Transportation 225 YMCA Youth organization and fitness center 220 Target Retail 200 TE Connectivity Automotive engineering 142 GAF Materials Corp Roofing materials-manufacturing 125 Anoka County Highway Department County government and services 120 206 GLOSSARY ACCOUNTING SYSTEM: The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned (whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). ACTIVITY: A cost center for recording charges for services delivered or functions performed. Each activity has an assigned manager who is responsible for planning and conducting the various approved objectives or workloads. AMERICAN RECOVERY PLAN ACT (ARPA): The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, is a US $1.9 trillion economic stimulus bill to speed up the country's recovery from the economic and health effects of the COVID-19 pandemic and recession. AMORTIZATION: (1) The portion of the cost of a limited-life or tangible asset charged as an expense during a particular period. (2) The reduction of a debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION: An authorization made by the legislative body of a government that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ASSESSED VALUATION: A valuation set upon real estate or other property by a government as a basis for levying taxes. ASSESSMENT: (1) The process of making the official valuation of property for taxation. (2) The valuation placed upon property as a result of this process. ASSETS: Property owned by a government that has a monetary value. AUDIT: Audits focus on examining the accuracy and fairness of financial statements. These audits assess whether the financial records of a government entity present a true and fair view of its financial position and operations. Auditors evaluate the entity's accounting practices, internal controls, and adherence to generally accepted accounting principles (GAAP). BALANCED BUDGET: When revenues and other financing sources equal expenditures/expenses and other financing uses. 207 A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. UT DOCUMENT: The official written statement prepared by the budget office and supporting staff that presents the proposed budget to the legislative body. BUDGET MESSAGE: A general discussion of the proposed budget presented in writing as a part of or supplement to the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the chief executive and budget officer. CAPITAL EXPENDITURE: a fixed asset is defined as a specific piece of property which meets the following: 1. It is tangible and does not materially change its form through use. 2. Its expected useful life is greater than three years. 3. It has significant value. In Andover's financial system, significant value has two different thresholds: • $5,000 for tangible assets. A tangible asset is an asset having a physical existence, such as cash, equipment and real estate. • $10,000 for intangible assets. An intangible asset is an asset that possesses all of the following characteristics: lack of physical substance, nonfinancial nature, and initial useful life extending beyond a single reporting period. This includes but is not limited to easements, right-of-ways, software, etc. CAPITAL ASSETS: Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. CAPITAL IMPROVEMENTS BUDGET: A plan of proposed capital expenditures and the means of financing them. The capital budget is usually enacted as part of the complete annual budget, which includes capital outlays. The capital budget normally is based on a capital improvement plan (CIP). CARES: Coronavirus Aid, Relief and Economic Security 208 COVID-19: The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2. DELINQUENT TAXES: Taxes that remain unpaid on and after the date on which a penalty for non-payment is attached. DIVISION: An organizational unit within a department for purposes of administration and cost accounting. EMS: Emergency Medical Services ENTERPRISE FUND: (1)A fund established to account for operations financed and operated in a manner similar to private business enterprises. In this case, the governing body intends that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. EXPENDITURES: Where accounts are kept on the accrual or modified basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purchases are made. FINES & FORFEITS: A sum of money imposed or surrendered as a penalty. FISCAL DISPARITIES: A distribution of 40% of the growth in commercial and industrial properties within the seven-county metropolitan area since 1971. FISCAL YEAR: A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. FULL FAITH AND CREDIT: A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds). FUND: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The excess of a fund's assets over its liabilities, generally called a reserve. A negative fund balance is sometimes called a deficit. GENERAL FUND: The fund used to account for all financial resources, except those required to be accounted for in another fund. 209 GENERAL OBLIGATION : When a government pledges its full faith and credit to the repayment of the bonds it issues, those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds that are to be repaid from taxes and other general revenues. GENERAL OBLIGATION REVENUE S: Intended to be paid first from the revenues of the enterprise fund. They are backed by the full faith, credit and taxing power of the City. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the GAAP. F : Government Finance Officers Association G.I.S.: Geographic Information System GOAL: The intention of an activity or a plan. GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GAS ): The authoritative accounting and financial reporting standard- setting body for government entities. GOVERNMENTAL FUNDS: Funds used to account for the acquisition, use and balance of expendable financial resources and the related current liabilities-except those accounted for in proprietary funds and fiduciary funds. Under current GAAP, there are four governmental fund types: general, special revenue, debt service and capital projects. GPS: Global Positioning System GRANT: A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the state and federal governments. Grants are usually made for specified purposes. HIGHWAY MAINTENANCE: An intergovernmental revenue from the State to be used for maintenance of the municipal state aid street system. The money comes from the state gasoline tax and fees from motor vehicle registration. HOMESTEAD AND AGRICULTURAL CREDIT AID ( ): A property tax relief program that replaced the former homestead credit program and the agricultural credit program. HACA is tied to class rate reductions for certain classes of property. 210 HRA: Housing and Redevelopment Authority. The HRA may buy, own and sell land for housing and economic development purposes and engage in other housing and redevelopment activities consistent with MN law. INFRASTRUCTURE: The basic facilities, equipment, services and installations needed for the growth and functioning of a community. Includes roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. INTERGOVERNMENTAL REVENUES: Revenues from other governments in the form of grants, entities, shared revenues or payments in lieu of taxes. INTERNAL SERVICE FUND: A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost reimbursement basis. LEGAL DEBT LIMIT: The maximum amount of outstanding gross or net debt legally permitted. LEGAL DEBT MARGIN: The legal debt limit less outstanding debt subject to limitation. LEGISLATIVE: Having the power to create laws. LEVY: (1) (Verb) To impose taxes, special assessments or service charges for the support of government activities. (2) (Noun) The total amount of taxes, special assessments or service charges imposed by a government. LOCAL GOVERNMENT AID (LA): A state government revenue sharing program for cities and townships that is intended to provide an alternative to the property tax. LGA is distributed through a formula based on tax base, population, population decline, age of housing and the percent of market value classified as commercial or industrial. LOCAL PERFORMANCE AID (LP ): A state program for cities and counties that is intended to provide an incentive for local governments to develop performance measurement systems. MARKET VALUE: An assessor's estimate of what property would be worth on the open market if sold. The market value is set on January 2 of the year before taxes are payable. MARKET VALUE HOMESTEAD CREDIT (MVHC): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxes by providing a credit or reduction on the amount of property taxes. MARKET VALUE HOMESTEAD EXCLUSION (MVHE): a property tax relief program devised by the State government to give local property tax payers relief from the burden of local property taxes by excluding a portion of property value from taxation. 211 MODIFIED ACCRUALBASIS: The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. MATURITIES: The dates on which the principal or stated value of investments or debt obligations mature and may be reclaimed. OBJECT OF EXPENDITURE: Expenditure classification based upon the types or categories of goods and services purchased. Typical objects of expenditure include: - personal services (salaries and wages); - charges and services (utilities, maintenance contracts, travel); - supplies and materials; and, - capital outlay. OBJECTIVE: A specific, measurable goal that outlines the desired result or outcome an organization aims to achieve. OPERATING BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for the calendar year and the proposed means of financing them (revenue estimates). OPERATING EXPENSES: Proprietary fund expenses related directly to the fund's primary activities. OPERATING TRANSFER: Routine and/or recurring transfers of assets between funds. ORDINANCE: A formal legislative enactment by the government body of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies. OTHER CHARGES: A level of budgetary appropriations, which includes expenses for outside professional services, advertising, insurance, utility costs, repairs maintenance and miscellaneous costs. P : Public Employees Retirement Association PERFORMANCE MEASURES: A quantitative or qualitative measurement of activity. PERSONAL VICES: A level of budgetary appropriations, which includes expenses for salaries, wages, and related employee benefits such as the City's share of retirement and insurance. 212 POLICE DEPARTMENT AID: An intergovernmental revenue from the State to be used to maintain the Police Department. A premium tax of two percent is imposed on automobile insurance and apportioned to qualifying cities. POLICY: A set of guidelines used for making decisions. PRE-EMPTIVE DEVICES: Radio frequency controlled traffic light on emergency vehicles. PROGRAM: Group activities, operations or organizational units directed to attaining specific purposes or objectives. PROPRIETARY FUNDS: Account for government's ongoing organizations and activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses and transfers relating to the government's business and quasi- business activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination on net income, financial position and changes in financial position. Includes enterprise and internal service funds. RESERVES: Assets kept back or saved for future use or special purpose. RESIDUAL EQUITY TRANSFER: Non-recurring or non-routine transfers of assets between funds. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of the government's proprietary funds (those funds where service charges will recover costs of providing those services). REVENUE: The term designates an increase to a fund's assets which: - does not increase a liability (e.g., proceeds from a loan); - does not represent a repayment of an expenditure already made; - does not represent a cancellation of certain liabilities; and - does not represent an increase in contributed capital. REVENUE ESTIMATE: A formal estimate of how much revenue will be earned from a specific revenue source for some future period; typically, a future fiscal year. SPECIAL ASSESSMENT: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. 213 SUPPLIES: A level of budgetary appropriations, which includes expenses for commodities that are used such as office supplies, operating supplies, repair and maintenance supplies. TAX CAPACITY: A valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. The assessor determines the estimated market (resale)value of the property. This value is converted to tax capacity by a formula specified in state law. TAX CAPACITYRATE: The property tax rate that is based on the taxes levied as a proportion of the property value. A tax rate of 18.751% produces $18.75 of taxes on each $100 of tax capacity that a property is valued at. TAX LEVY: The total amount to be raised by general property taxes for the purposes stated in the resolution certified to the County Auditor. TAXES: Compulsory charges levied by a government to finance services performed for the common benefit. TRUTH IN TAXATION: The "taxation and notification law" which requires local governments to set estimated levies, inform taxpayers about the impacts, and hold a separate hearing to take taxpayer input. VARIANCE: A relaxation of the terms of the zoning ordinance where such variance will not be contrary to the public interest and where, owing to conditions peculiar to the property and not the result of the actions of the applicant, a literal enforcement of the ordinance would result in unnecessary and undue hardship. WORKING CAPITAL: Current assets minus current liabilities. WORKLOADS: A measure of the services provided. 214