HomeMy WebLinkAbout2026 Annual Operating Budget
1685 Crosstown Blvd NW, Andover, MN 55304
Phone: (763) 755-5100 * Fax: (763) 755-8923
www.andovermn.gov
2026
Annual
Operating
Budget
CITY OF ANDOVER
2026 Annual Operating Budget
Table of Contents
Introduction
Public Official Listing .................................................................................... 1
Organizational Chart ....................................................................................... 2
Budget Message .............................................................................................. 3
City Council Resolution Adopting Budget ..................................................... 22
Values and Goals ............................................................................................ 25
Budget Development Process ......................................................................... 26
2026 Budget Development Calendar .............................................................. 27
Accounting, Auditing and Financial Reporting Policy ................................... 28
Operating Budget Policy ................................................................................. 29
Revenue Policy ............................................................................................... 31
Capital Improvement Policy ........................................................................... 31
Debt Administration ....................................................................................... 32
Investment Policy ........................................................................................... 33
Revenue Projections ....................................................................................... 36
2026 Budget Summary by Fund Type ............................................................ 41
2026 Budget Summary – Revenues and Expenditures Fund Summary .......... 42
2026 Budget Summary – Revenues and Expenditures All Funds .................. 43
2026 Budget Summary – Revenues and Expenditures by Fund Type ............ 44
Governmental Funds – Major Funds Breakdown ........................................... 45
Revenue Comparison – General Fund ............................................................ 46
Expenditure Comparison – General Fund ....................................................... 47
Expenditure Budget Summary – By Department – General Fund .................. 48
Five Year Financial Projections – General Fund ............................................ 49
2026 FTE Summary ........................................................................................ 50
2026 Capital Improvement Budget ................................................................. 51
General Fund
Definition ........................................................................................................ 53
Statement of Revenues, Expenditures and Changes in Fund Balance ............ 55
Mayor & Council ............................................................................................ 56
Administration ................................................................................................ 57
Newsletter ....................................................................................................... 58
Human Resources ........................................................................................... 59
Attorney .......................................................................................................... 60
City Clerk ....................................................................................................... 61
Elections ......................................................................................................... 62
Financial Administration ................................................................................ 63
Assessing ........................................................................................................ 64
Information Systems ....................................................................................... 65
General Fund (Continued)
Planning and Zoning ....................................................................................... 66
Engineering ..................................................................................................... 67
Facilities Management .................................................................................... 68
Police Protection ............................................................................................. 69
Fire Protection ................................................................................................ 70
Protective Inspection ...................................................................................... 71
Emergency Management ................................................................................ 72
Animal Control ............................................................................................... 73
Streets & Highways ........................................................................................ 74
Snow & Ice ..................................................................................................... 75
Street Signs ..................................................................................................... 76
Traffic Signals ................................................................................................ 77
Street Lighting ................................................................................................ 78
Street Lights Billed ......................................................................................... 79
Parks & Recreation ......................................................................................... 80
Natural Resource Preservation ........................................................................ 81
Recycling ........................................................................................................ 82
Unallocated ..................................................................................................... 83
Special Revenue Funds
Definition ........................................................................................................ 85
Statement of Revenues, Expenditures and Changes in Fund Balance – All
Special Revenue Funds ............................................................................ 87
Economic Development Authority Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 88
Fund Overview ........................................................................................ 89
Local Affordable Housing Aid Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 90
Fund Overview ........................................................................................ 91
Community Center Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 92
Fund Overview ........................................................................................ 93
Drainage and Mapping Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 94
Fund Overview ........................................................................................ 95
Lower Rum River Watershed Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 96
Fund Overview ........................................................................................ 97
CITY OF ANDOVER
2026 Annual Operating Budget
Table of Contents
Special Revenue Funds (Continued)
Forestry Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 98
Fund Overview ........................................................................................ 99
Right of Way Management / Utility Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 100
Fund Overview ........................................................................................ 101
Charitable Gambling Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 102
Fund Overview ........................................................................................ 103
Crack Seal & Pavement Seal Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 104
Fund Overview ........................................................................................ 105
CARES Act / ARPA Funding
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 106
Fund Overview ........................................................................................ 107
Debt Service Funds
Definition ........................................................................................................ 109
Statement of Revenues, Expenditures and Changes in Fund Balance – All
Debt Service Funds .................................................................................. 111
Certificates / Capital Notes – 2020A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 112
Fund Overview ........................................................................................ 113
Certificates / Capital Notes – 2021A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 114
Fund Overview ........................................................................................ 115
Certificates / Capital Notes – 2024A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 116
Fund Overview ........................................................................................ 117
General Obligation Bonds – 2018A G.O. Capital Improvement Plan Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 118
Fund Overview ........................................................................................ 119
General Obligation Bonds – 2012C G.O. Abatement Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 120
Fund Overview ........................................................................................ 121
General Obligation Bonds – 2019A G.O. Taxable Abatement Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 122
Fund Overview ........................................................................................ 123
Debt Service Funds (Continued)
General Obligation Bonds – 2021A G.O. Street Reconstruction Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 124
Fund Overview ........................................................................................ 125
General Obligation Bonds – 2024A G.O. Street Reconstruction Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 126
Fund Overview ........................................................................................ 127
Capital Projects Funds
Definition ........................................................................................................ 129
Statement of Revenues, Expenditures and Changes in Fund Balance – All
Capital Projects Funds ............................................................................. 131
Water Trunk Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 132
Fund Overview ........................................................................................ 133
Sewer Trunk Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 134
Fund Overview ........................................................................................ 135
Road and Bridge Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 136
Fund Overview ........................................................................................ 137
Park Dedication Projects
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 138
Fund Overview ........................................................................................ 139
Building Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 140
Fund Overview ........................................................................................ 141
Trail & Transportation
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 142
Fund Overview ........................................................................................ 143
Capital Equipment Reserve
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 144
Fund Overview ........................................................................................ 145
2024A G.O. Capital Improvement Plan Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 146
Fund Overview ........................................................................................ 147
Tax Increment Projects
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 148
Fund Overview ........................................................................................ 149
CITY OF ANDOVER
2026 Annual Operating Budget
Table of Contents
Capital Projects Funds (Continued)
Permanent Improvement Revolving
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 150
Fund Overview ........................................................................................ 151
2024A G.O Street Reconstruction Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 152
Fund Overview ........................................................................................ 153
Enterprise Funds
Definition ........................................................................................................ 155
Statement of Revenues, Expenditures and Changes in Retained Earnings –
All Enterprise Funds ................................................................................ 157
Water Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 158
Fund Overview ........................................................................................ 159
Sanitary Sewer Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 160
Fund Overview ........................................................................................ 161
Storm Sewer Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 162
Fund Overview ........................................................................................ 163
Internal Service Funds
Definition ........................................................................................................ 165
Statement of Revenues, Expenditures and Changes in Fund Balance – All
Internal Service Funds ............................................................................. 167
Central Equipment Maintenance Fund
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 168
Fund Overview ........................................................................................ 169
Risk Management
Statement of Revenues, Expenditures and Changes in Fund Balance ..... 170
Fund Overview ........................................................................................ 171
Appendix
Budget Year 2026 – Operating Transfers ....................................................... 173
2026 – 2030 Capital Improvement Plan Development Calendar .................... 174
Capital Improvements Plan 2026-2030 .......................................................... 175
Summary of Outstanding Bond Issues ............................................................ 194
Future Debt Service Requirements ................................................................. 195
Computation of Legal Debt Margin ................................................................ 196
Property Tax Levies and Collections .............................................................. 197
Special Assessment Levies and Collections ................................................... 197
Principal Taxpayers ........................................................................................ 198
Building Permits, Property Values and Households ....................................... 198
Demographics ................................................................................................. 199
Miscellaneous Statistical Data ........................................................................ 200
Glossary of Terms ........................................................................................... 201
Karen Godfrey Councilmember
Scott Schue Councilmember
CITY OF ANDOVER
Adopted 2026 City Budget
Jamie Barthel Mayor
Rick Engelhardt Councilmember
Joe Heidelberger Building Official
Dennis Jones Fire Chief
Jonathan Shafto Councilmember
David Berkowitz Director of Public Works / City Engineer
Sarah Cotton City Administrator
Joe Janish Community Development Director
Lee Brezinka Finance Manager
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CITY OF ANDOVER
2026 Organizational Chart
City Attorney
Administrative
Services
Human Resources
Newsletter
Economic
DevelopmentAuthority
Community
Center
Charitable
Gambling
Recycling
Information
Systems
Administration
Emergency
Management
Protective
Inspections
Building Inspections
Clerk's Office
Elections
Animal Control
City Clerk
Engineering
Services
Right-of-Way
Management
Drainage &
Mapping
Lower Rum River
Watershed MgmtOrganization
Forestry
Trail &
Transportation
Construction
Seal Coating
Water Trunk
Storm Sewer
Sewer Trunk
Road & Bridge
Park Dedication
Projects
Engineering
Financial
Administration
Assessing
Facilities
Management
Unallocated
Capital Equipment
Reserve
Debt Service Funds
Tax Increment
Projects
Building Fund
Permanent
Improvement
Revolving
G.O. Capital
Notes
Risk
Management
Finance
Fire Protection
Fire Protection
Planning & Zoning
Services
CDBG
Planning
Streets/Highways
Snow & Ice
Removal
Street Lighting
Signage
Traffic Signals
Parks & Recreation
Water
Sewer
Central Equipment
Natural Resources
Preservation
Public Works Police Protection
City Administrator Advisory Boards
City Council
Residents
2
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 2026 City Budget
DATE: December 2, 2025
INTRODUCTION
City Code 1-6-2 C, Major Areas of Accountability, requires 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, 2025. In response to these requirements, a
proposed budget was presented to the Council on September 2, 2025. The council held budget-planning sessions from March through August to
discuss priorities and adopted the preliminary 2026 City Levy on September 2, 2025. Additional budget discussions were held with the Council
in September, October, and November before the public hearing and final adoption on December 2, 2025. The official adoption of the 2026
Budget and City Levy will be submitted to Anoka County and the Minnesota Department of Revenue on or before December 29, 2025.
This budget document should be viewed as more than just a collection of financial data; it is a financial plan through which the organization will
implement the Council policies and meet the articulated needs of the community. In addition to the financial data, this document 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 2026.
As part of the budget development process, City staff and department supervisors performed a comprehensive review of their specific service
needs, prioritized spending requests to achieve the most effective operational delivery of services and 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.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
GENERAL INFORMATION
The city we know today as Andover was first organized in 1857 as “Round Lake Township.” In 1860, the name was changed to “Grow
Township” in honor of Congressman Galusha A. Grow of Pennsylvania, a strong advocate for the Union cause who spoke in Anoka that year.
At that time, the population was 330 and included the geographical area we know today as Ham Lake, which remained part of Grow Township
until 1871.
In 1972, recognizing the area's rapid growth, the Board of Supervisors determined that a village form of government would better serve the
community and voted to proceed with incorporation. The board chose the name “Andover Village” for its historical connection to the Andover
train station. While a popular “train myth” suggests the name came from an eyewitness describing a train tipping “over and over” in a swamp,
research reveals the name first appeared in the Anoka County Union newspaper on March 14, 1899—before railroad tracks were even 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, though
the specific origin of the name remains unknown. Andover Village was officially established in 1972 and became a city of the fourth class in
1974. Today, Andover’s population exceeds 30,000, classifying it as a second-class city.
BUDGET GUIDELINES
The following 2026 Budget Development guidelines were established by the City Council on March 25, 2025. These principles guided City
Staff in preparing the proposed operating budget and are presented with a brief description of the outcome of each guideline:
1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positions the City for long-term competitiveness using
sustainable revenue sources and operational efficiencies.
Note: Anoka County Assessor estimated taxable market value figures for the City of Andover are based on numbers provided reflecting a
5.90 % increase in total taxable market value for 2026. The 2025 increase was 0.08%.
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2026 Adopted City Budget
2) A fiscal goal that works toward establishing the General Fund working capital fund balance at no less than 45% of planned 2026 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 2026 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 recommended by the City’s auditor. The 2025 budget development exceeded this guideline for cash flow, also Emergency
Fund Balances (approximately 3% of planned General Fund expenditures per finance policy) are in place to stabilize a situation, not to be
a complete solution. At the October 7th meeting, the City Council approved a $1,000,000 transfer from the General Fund to address several
priorities: $250,000 to the EDA Special Revenue Fund to cover a funding shortfall, and $750,000 to the Capital Equipment Reserve Fund.
This latter portion provides $250,000 for the Kelsey Round Lake Trail matching grant, $350,000 for an additional plow truck replacement,
and $150,000 to increase the natural disaster reserve.
3) A commitment to limit the 2026 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: By actively managing long-term debt, the 2026 debt levy was kept within the 25% guideline at 23.08%—a slight reduction from the
2025 rate of 23.92%
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 2026-2030 Capital Improvement Plan (CIP) development process. The 2026-2030 CIP
was adopted after a public hearing at the September 16th 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.
Note: The City continually maintains various financial models to determine the long-term impacts of present-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.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
6) Continued commitment to strategic planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and
facility needs.
Note: A core priority for the 2026 budget, in alignment with the City’s strategic plan, is to prioritize our people and maintain organizational
flexibility and adaptability. The strategic plan outlines the following top short-term goals: 1) Develop and implement succession plans,
identifying appropriate depth within each department and mentoring employees to gain organizational capacity. 2) Implement actions
related to staff retention and attraction to keep the City market competitive (compensation, benefits, etc.). Administration continues to
integrate this direction 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 is given to fiscal values, commercial & residential development or redevelopment, collaboration opportunities,
service delivery, and community livability.
SIGNIFICANT EVENTS OF THE CURRENT YEAR
Andover was one of the fastest-growing cities in the Twin Cities metropolitan area between 2000 and 2006. While the pace of residential
development has since slowed due to regional and national economic factors, the City has successfully adapted by identifying alternate locations
for sewer-supported growth. In 2025, the City issued 102 new single-family building permits (total valuation of $33.5M) and 5 new commercial
permits (total valuation of $50.4M). This represents a significant increase in commercial investment compared to the $2.4M in commercial
valuations the prior year. More detailed information is available on City growth later in this budget message.
Some additional noteworthy activities that occurred in 2025 include:
1) The City secured $8 million in State funding to extend municipal water into the Red Oaks neighborhood (Phase II), a neighborhood
where private wells were discovered to be contaminated while conducting water sampling near the Waste Disposal Engineering (WDE)
Closed Landfill in Andover. Construction is scheduled for 2026, with 84 homes potentially connecting to the municipal water supply.
2) Over 12 miles of roads were either reconstructed or overlaid during the road construction season. Additionally, two new roundabouts
were completed at the intersections of Nightengale Street with Crosstown Blvd and Veterans Memorial Blvd.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
3) New residential plats included Fields of Winslow Cove 4th Addition (85 urban lots), Lakeview at Sloth Farms (5 urban lots), Boulder
Prairie Estates (27 urban lots), and Hartmans Meadows (12 rural lots). The City currently maintains a supply of 152 urban and 13 rural
lots.
4) Several new businesses moved to Andover, including Starbucks, Chipotle, 304 Bakery, Resemble Barbers, Chase Bank, and a
Holiday/Circle K. While some utilized existing spaces, most established new standalone structures.
5) Transform Church began a 23,000-square-foot expansion, and Legacy Christian Academy purchased the former Meadow Creek Church
facility. Meadow Creek Church is now building a new 8,400-square-foot facility on the adjacent property.
6) Crosstown Landings is currently under construction and will provide 217 units of senior housing, and include a warm water pool,
indoor pickleball court, indoor golf simulator, wellness/fitness rooms, and other amenities for its residents.
7) The Bank of Elk River received a Conditional Use Permit for a building with a drive-thru and is expected to start construction of a
2,700 square foot facility in 2026.
8) An Alternative Urban Areawide Review (AUAR) began for approximately 800 acres of the Rural Reserve. This study evaluates the
potential for up to 1,545 residential units and 30 acres of commercial property.
9) Recruitment initiatives resulted in 11 new paid-on-call hires for the Andover Fire Department.
10) Andover residents continue to maintain one of the highest recycling rates per person in Anoka County. The City hosted successful
monthly recycling events throughout 2025, focusing on items like electronics and paper shredding.
11) For the 23rd consecutive year, the City received the GFOA "Excellence in Financial Reporting Award." Completing this report
internally continues to save the City significant consulting fees.
12) The City continues to implement its single-family rental housing license program, which provides landlords with educational materials
and checklists for property maintenance. The program includes a list of potential ordinance violations and an exterior inspection
conducted by City staff. Authorized by the City Council in 2009 and reviewed annually, the program saw nearly 275 single-family
rental licenses issued throughout the City in 2025.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
13) The City is making significant progress in digitally imaging retained records, ranging from standard legal documents to large-scale
construction plans. This imaging project has improved data retrieval efficiencies, reduced the need for physical office expansion, and
expedited City research projects—all of which contribute to long-term staffing and operational savings.
14) The City continues to utilize financial management software updates to enhance reporting and operating efficiencies, resulting in more
timely reports and reduced personnel costs. In 2025, the City saw continued growth in both online and in-person credit card payments
for permits and services. Currently, approximately 65% of Building Department permits are processed online, saving customers
significant time and travel expenses.
OVERVIEW
The Adopted 2026 Budget anticipates General Fund revenues of $16,182,461 to meet budgeted expenditures of $16,724,671. This results in a
planned use of fund balance; consequently, total General Fund reserves are projected to decrease from 72.08% in 2025 to 68.82% in 2026.
Overall, the 2026 General Fund Budget represents a $1,006,516 increase in expenditures over the previous year. Designated capital operating
levies increased by $227,297, bringing the 2026 balance to $3,452,165. The 2026 Debt Service Levy of $4,905,158—which includes equipment
notes, abatement bonds, capital improvement bonds, and street reconstruction bonds—decreases the City’s debt-to-gross-levy ratio to 23.08%,
down from 23.92% the prior year.
The increase in General Fund expenditures is primarily driven by Public Safety and Public Works. Public Safety costs (Police and Fire) increased
by $556,541. This includes a 6.76% ($266,287) increase in the law enforcement contract and a $290,254 increase for the Fire Department, both
largely due to additional staffing and competitive salary/benefit adjustments. Public Works expenditures increased by $221,040 over the 2025
budget, also primarily due to salary and benefit adjustments.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
General Fund expenditure trends starting from 2020 are as follows:
Expenditures
Population Per Capita
% Change
2020 Actual 11,395,878$ n/a 32,601 349.56$
2021 Actual 12,091,500$ 6.10% 32,708 369.68$
2022 Actual 12,569,831$ 3.96% 32,822 382.97$
2023 Actual 13,019,879$ 3.58% 33,089 393.48$
2024 Actual 13,953,540$ 7.17% 32,596 428.08$
2025 Estimated 15,719,322$ 12.65% 32,796 479.31$
2026 Adopted 16,724,671$ 6.40% 32,996 506.87$
Before Transfers
Expenditures
$200
$300
$400
$500
$600
2020 2021 2022 2023 2024 2025 2026
Expenditures Per Capita
Note: The population figures are estimates by the Met Council.
The 2026 Adopted Budget provides for a tax capacity rate of 35.288%, compared to 36.389% for 2025 (excluding open space and watershed
levies). This decrease in the tax capacity rate is primarily due to the growth in local tax capacity values and fiscal disparities, which offset the
slight increase in the overall tax levy.
% Change % Change
2020 36,099,539$ n/a 35.656% n/a
2021 37,366,775$ 3.51% 35.574% -0.23%
2022 40,210,548$ 7.61% 35.994% 1.18%
2023 50,267,978$ 25.01% 30.873% -14.23%
2024 52,292,926$ 4.03% 32.181% 4.24%
2025 52,531,509$ 0.46% 36.389% 13.08%
2026 55,594,902$ 5.83% 35.588% -2.20%
Tax Capacity Values Tax Capacity Rates
30.0%
35.0%
40.0%
45.0%
2020 2021 2022 2023 2024 2025 2026
Tax Capacity Rates
Note: The tax capacity rates exclude open space and watershed levies.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
Some highlights of the Adopted 2026 Budget are as follows:
Capital Projects Levy – The 2026 Budget specifically designates $3,412,165 of the general tax levy to capital projects and equipment.
Strategically allocating these resources allows the City to meet transportation and infrastructure needs while raising public awareness of spending
priorities. The breakdown includes:
• Road and Bridge ($2,400,000): Based on a detailed analysis of city street conditions and the needs of the roadway system.
• Capital Outlay ($525,000): This reflects a $225,000 increase achieved by reallocating funds from the debt service levy. This "pay-as-
you-go" shift bypasses the bonding process, resulting in an estimated savings of $50,000 per issuance.
• Facility Maintenance Reserve ($355,000): Designated to fund repairs identified in the recent facility condition assessment.
• Pedestrian Trail Maintenance ($117,165): Dedicated to the upkeep and safety of the City's trail system.
• Park Projects ($15,000): Designated for miscellaneous park-related capital projects.
Sheriff’s Police Contract Services – The Anoka County Sheriff’s contract reflects a 6.76% increase ($266,287). The budget maintains 72 hours
of daily patrol service, a Community Service Officer, two Patrol Investigators, and two Community Oriented Policing Officers. The Crime
Watch Coordinator position will now be under the Sheriff's service umbrella.
Attorney – The budget includes a 3.89% general increase ($8,873) to manage legal services for the City.
City Memberships and Contributions – The City supports several regional organizations and local programs that provide essential services to
our residents. General fund supported memberships, and contributions are as follows:
▪ North Metro Mayors Association $14,261 - membership
▪ Metro Cities $10,027 - membership
▪ Mediation Services $ 6,628 - program contribution
▪ Alexandra House $15,000 - program contribution (domestic abuse programs)
▪ Teen Center Funding (YMCA) $ 5,600 - program contribution (youth services)
The following memberships/contributions are included as part of the 2026 budget in the Charitable Gambling Special Revenue Fund:
▪ Teen Center Funding (YMCA) $24,400 - program contribution (youth services)
▪ YMCA – Water Safety Program $10,000 - program contribution (youth services)
▪ Alexandra House $ 9,500 - program contribution (domestic abuse programs)
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2026 Adopted City Budget
▪ Senior High Parties $ 2,000 - donation (youth programs)
▪ Family of Promise $ 4,000 - program contribution (homelessness programs)
▪ Stepping Stone $ 2,000 - program contribution (homelessness programs)
▪ Lee Carlson Central Center for
Family Resources $ 2,500 - program contribution (mental health services)
▪ Hope for Youth $ 2,000 - program contribution (homelessness programs)
▪ Andover Senior Club $ 1,000 - program contribution (senior services)
ORGANIZATIONAL MANAGEMENT
Staffing and Strategic Realignment – Consistent with the strategic plan, the City is prioritizing a stable, high-performance culture to ensure
excellence in service delivery. The following staffing changes are the result of recent restructuring to meet community demand:
Engineering Department – Starting January 1, 2026, the Engineering Secretary position will transition to half-time and intern funding will
be eliminated. These resources will be reallocated to add a full-time Engineer on July 1. This shift moves resources from administrative
support to professional roles where workload demand for infrastructure projects is highest.
Building Department – To address the surge in housing and commercial development, a half-time Inspector and full-time Secretary will be
realigned into a full-time Building Inspector and a half-time Secretary. This adjustment is expected to be fully supported by the permit
revenue generated by increased development.
Fire Department – Following an independent evaluation, the City is moving to a new duty-crew model. By adjusting hours based on call-
volume data and implementing two dedicated full-time weekday personnel, the City will ensure consistent daytime response. The first
position is funded entirely by savings from the new model; the second will be added mid-year to manage costs.
With several retirements and vacancies anticipated through 2026, Administration and Human Resources will continue to focus on succession
planning, cross-training, and the strategic realignment of resources to maintain service levels without interruption.
Cost-of-Living Adjustments – To remain competitive with other government entities, the 2026 budget includes a 4.00% COLA and eligible step
increases. These adjustments are verified against detailed market rate reviews. The current Public Works Union contract expires December 31,
2027, and provides for a 4.00% COLA for 2026 and 2027.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
Health Insurance Costs – Premiums increased by 15.0% for 2026. The City maintains an employer contribution ratio of 100% for single coverage
and 76% for family coverage. To manage these costs, the City continues to utilize a high-deductible plan paired with a Health Reimbursement
Arrangement (HRA) to "buy down" premium costs.
Minnesota Paid Leave Program – Beginning January 1, 2026, a new state-mandated program will provide job-protected family and medical
leave. Funded by a 0.88% premium on wages, the City will cover 50% of the cost as required by law.
Workers’ Compensation Insurance – The City’s insurance costs are determined by an "Experience Modification Factor" (Mod Factor). A score
of 1.0 represents the industry average. In 2025, the City enjoyed a 0.96 factor, resulting in a premium discount (cost: $235,840). In 2026, the
factor is increasing to 1.85 due to recent claims experience, resulting in a premium surcharge (estimated cost: $335,352). The City remains
committed to safety initiatives to help lower this factor and reduce future premiums.
CITY GROWTH
The City saw robust development in 2025, welcoming new businesses such as Starbucks, Chipotle, 304 Bakery, Resemble Barbers, Chase Bank,
and a Holiday/Circle K. Significant institutional growth is also underway, with Meadow Creek Church constructing a new facility and Transform
Church expanding its campus. Additionally, the Crosstown Landings senior housing project is under construction; once complete, it will provide
217 units and premium amenities, including a warm water pool, indoor pickleball, a golf simulator, and fitness rooms.
Residential growth remains steady with the addition of several new plats, including Fields of Winslow Cove 4th Addition (85 urban lots),
Lakeview at Sloth Farm (5 urban lots), Boulder Prairie Estates (27 urban lots), and Hartmans Meadows (12 rural lots). Currently, the City
maintains a supply of 152 urban and 13 rural lots.
In 2025, the City issued 102 new single-family building permits with a total valuation of $33,553,396. Notably, commercial investment saw a
significant increase, with 5 new commercial permits valued at $50,478,662—up from just $2,400,000 the previous year. According to the 2020
Census, Andover’s population stands at 32,601.
Growth Factors 1995 2025 Estimate % Change
Population 20,497 32,596 59
Housing Units 6,300 11,091 76
Streets (miles) 150 207 38
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
Growth Factors 1995 2025 Estimate % Change
Cul-de-sacs 155 368 137
Storm Sewer (miles) 18 87 384
Water Main (miles) 35 130 271
Sanitary Sewer (miles) 53 106 100
Parks (Number) 54 68 26
Developed Park Acreage 512 631 23
Trails (miles) 0 41 100
Developed Residential (acres) 7,750 9,639 24
Undeveloped Residential (acres) 14,616 12,653 (13)
Fire/Medical Runs 625 1,917 207
Growth Factors 2000 2025 Estimate % Change
Calls for Service – Police 9,588 12,824 34
Incident Reports 8,385 9,706 16
Note: Reference Year is 2000 due to database reporting changes.
CAPITAL OUTLAY/IMPROVEMENTS
The Adopted 2026 Budget includes $27,709,000 for capital equipment and improvements. These projects are funded through a strategic mix of
sources, including the General Fund, dedicated capital levies, Enterprise Funds, special assessments, state grants, and the issuance of notes and
bonds. Key funding allocations for 2026 include: $8,000,000 from the Minnesota Pollution Control Agency (MPCA) for the Red Oaks water
extension, $10,318,000 for road improvements via bonds, tax levy, state aid, and special assessments, and $1,580,000 from capital, facility, and
general fund levies and reserves. The City’s 2026–2030 Capital Improvement Plan (CIP) was instrumental in shaping these outcomes. For a
detailed analysis of every item, residents are encouraged to view the complete CIP document in the Finance Department section of the City’s
website at www.andovermn.gov.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
Notable 2026 Capital Projects include:
Parks Department – $600,000 is programmed for park improvements, including $250,000 for the skate park, $150,000 for paving the Hawkridge
Park parking lot, and $200,000 for updating play structures to meet modern safety and ADA requirements.
Facility Management – $175,000 is allocated for the third phase of the City Hall office and cubicle remodel, funded by the Facility Maintenance
Reserve.
Fire – $350,000 is budgeted for the replacement of a Fire Department rescue vehicle, funded through the Capital Equipment Reserve.
Engineering – $2.2 million is budgeted for trail expansions, including sections along Coon Creek ($850,000), Crosstown Blvd ($850,000), and
the reconstruction of the Kelsey Round Lake Park trail ($500,000). Funding is provided by Trail and Capital Equipment funds along with a DNR
matching grant.
Water – The Minnesota Pollution Control Agency (MPCA) is providing $8 million to extend municipal water service to 84 homes currently
affected by contaminated private wells in the Red Oaks area.
Sanitary Sewer – $3.85 million is designated to extend the trunk sanitary sewer from Bunker Lake Boulevard to the Rural Reserve. This will be
initially financed by the Sewer Trunk Fund and fully reimbursed through future connection fees.
FUND BALANCE
General Fund and Reserves – The City establishes fund balance goals to ensure sufficient cash flow for capital purchases, emergency
contingencies, and long-term stability. For 2026, the General Fund is projected to use $542,210 of its fund balance to support operations. Despite
this planned use, the City continues to meet Council guidelines by maintaining a working capital balance of approximately $8,362,336,
representing 50% of planned expenditures. Additionally, the budget preserves $850,000 in emergency reserves to protect core services:
▪ Snow Emergency ($100K): For salt, sand, and labor during abnormal snowfall seasons.
▪ Public Safety ($100K): For unexpected police, fire, or civil defense costs.
▪ Facility Management ($100K): For emergency roofing, HVAC, or facility repairs.
▪ Information Technology ($100K): For phone system or network server emergencies.
▪ Economic Development ($150K): For TIF Management Fee Migration.
▪ Fiscal Disparities ($300K): To buffer against fluctuations in state-calculated tax sharing.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
Special Revenue and Debt Service Funds – The Economic Development Authority (EDA) fund will decrease by $91,286, reflecting lower
administrative fee revenue and a continued commitment to the Home Improvement Program. The Andover Community Center budget will
decrease by $61,832 as the City completes essential infrastructure projects, including a $75,000 fieldhouse lighting replacement. Debt Service
funds are projected to increase by $168,973, primarily due to a temporary timing variance between property tax receipts and scheduled debt
payments.
Capital Project Funds – The 2026 budget includes several strategic shifts in capital reserves to fund infrastructure. The Water Trunk Fund will
increase by $400,235 to build reserves for future replacements, while the Road and Bridge Fund will increase by $1,263,429 for proactive street
reconstruction. The Sewer Trunk Fund will decrease by $2,359,295 to finance the sanitary sewer extension to the Rural Reserve. These costs
are expected to be fully recovered through future developer connection fees. The Park Dedication and Trail & Transportation funds will decrease
by $283,600 and $1,423,100, respectively, to fund upgrades at the skate park and Hawkridge Park, as well as trail extensions along Coon Creek
and Crosstown Boulevard. The Capital Equipment Reserve will decrease by $567,381 as the City utilizes Public Safety Aid for fire equipment.
Additionally, the remaining $4.5 million in 2024A Street Reconstruction Bonds is scheduled for expenditure.
COMMUNITY VISION & GOALS
While the annual budget addresses immediate tasks, it is guided by the City of Andover’s slogan, vision statement, long-term values, and short-
term organizational goals. In 2023, the City Council and Leadership Team collaborated to update the Strategic Plan, which has since been
integrated into every department’s work plan and budget.
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 - 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 are essential if
citizens and businesses are to have confidence in government.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
● 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 customers - 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.
● 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 the provision of city services with available resources.
● Respect the environment.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
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 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 the street capital improvement plan, including funding and implementation.
● Prioritize the timely replacement of equipment and commitment to the 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.
Secondary, Opportunity Short-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.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
LONG-TERM FISCAL OBJECTIVES
The City Council and staff are committed to expending public resources in the most cost-effective and economical manner possible. Given the
unpredictable nature of state aid and levy limits, the City employs the following long-term fiscal strategies to ensure a balanced and stable
financial future:
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 decrease in 2026 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.
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, track per capita spending growth, and establish a link between fiscal targets and budgetary
expenditure goals.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
✓ 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 of deposit, 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.
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 in labor-saving technology, such as new software, enhanced programming,
and optical imaging of 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.
The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended period 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 separate capital projects levies 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.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
✓ City staff are encouraged to identify work practice issues that are inefficient or overly bureaucratic. The management team is committed
to involving its 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 2026 Adopted Budget reflects the City Council’s direction and staff’s commitment to a cost-effective, efficient, and high-quality service
model. It demonstrates the City’s pledge to live within its means, ensuring tax dollars are managed prudently to achieve the best possible
outcomes for residents. Notably, Andover continues to maintain one of the lowest tax rates in Anoka County and the Twin Cities metropolitan
area, with per-capita spending consistently ranking in the bottom half of peer cities.
Budgetary Process
The budgetary process was guided by the Council policy guidelines described earlier in this message. We approached this process by employing
several key strategies: extending the useful life of existing equipment, utilizing cost-center accounting to better understand specific service
expenditures, and actively seeking equipment-sharing opportunities with both public and private entities. We also focused on spreading the cost
of significant capital expenditures over several years and introducing new technologies that allow staff to work more efficiently and effectively.
Furthermore, the prudent management of existing capital, financial, and human resources—combined with organizational practices that promote
employee involvement and interdepartmental communication—will generate substantial efficiencies in City operations.
This process included active participation from all department heads and supervisors. Decisions concerning the operational and maintenance
needs of the organization were made by the management team after a thorough review and prioritization of all budgetary requests. The integrity
of this process relies upon every department working within the same framework to accurately identify operational needs, promote informed
team reviews, and meet the core service requirements of each department. To meet growing challenges, the City must continually evaluate new
methods of conducting business in a more economical and competitive manner while maintaining high service standards that meet the reasonable
expectations of the community.
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Mayor, Councilmembers, Residents
2026 Adopted City Budget
The budget process incorporates a management vision supported by the increased utilization and promotion of technology in public service
delivery and an emphasis on long-term strategic planning to effectively allocate resources for future needs. We continue to foster a workforce
characterized by greater participation, accountability, and flexibility, allowing for innovative responses to the demand for cost-effective services.
Additionally, we are focused on developing an alternate framework of special revenues and user fees to gradually reduce the City’s reliance on
tax levies by recovering costs from appropriate users. We recognize that the City should work as a partner with the community to meet challenges
rather than as the sole provider, while maintaining a strong voice in the legislature to ensure that Andover’s issues are clearly understood and
fairly addressed.
The 2026 Adopted Budget is the product of the collective efforts of the management team and their respective staff, who have worked diligently
to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognition is appropriate for Finance
Director Lee Brezinka and the Finance staff for generating the reliable financial data upon which this sound and valid budget document was
produced. The entire management team should be recognized for their efforts in preparing a budget that meets the needs of this growing
community while recognizing the limited nature of financial resources. Finally, the City Council should be recognized for its frugal use of
municipal resources and its continual efforts to provide essential services to the residents it represents. 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
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CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. R145-25
A RESOLUTION ADOPTING THE CITY OF ANDOVER 2026 BUDGET AND 2026 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 29, 2025; and
WHEREAS, Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 29, 2025.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2026 City of Andover Budget and the 2026 property tax levy
totaling $21,250,914 as listed on Attachment A.
BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2026 City of Andover Budget by fund type as follows:
General Fund 16,182,461$ General Fund 16,724,671$
Special Revenue Funds 2,772,068 Special Revenue Funds 2,948,490
Debt Service Funds 5,573,458 Debt Service Funds 5,404,485
Capital Projects Funds 19,431,872 Capital Projects Funds 27,050,927
Enterprise Funds 7,507,635 Enterprise Funds 7,216,095
Internal Service Funds 2,076,528 Internal Service Funds 2,069,810
Total 53,544,022$ Total 61,414,478$
EXPENDITURESREVENUES
Adopted by the City of Andover this 2nd day of December 2025.
ATTEST:
Michelle Hartner – City Clerk
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Attachment A
2026
Levy
General Fund Levy
General Operations 12,503,591$
Community Center Operations 155,000
Park Repair/Replacement Items 235,000
Total General Fund 12,893,591
Debt Service Funds Levy
2012C Taxable G.O. Abatement Bonds 968,689
2018A G.O. Capital Improvement Plan Bonds 615,419
2019A Taxable G.O. Abatement Bonds 1,179,308
2021A G.O. Street Reconstruction Bonds 701,553
2024A G.O. Equipment Certificate 444,834
2024A G.O. Street Reconstruction Bonds 995,355
Total Debt Service 4,905,158
Other Levies
Capital Projects Levy
Capital Equipment/Project 525,000
Facility Maintenance Reserve 355,000
Parks Projects 15,000
Road & Bridge 2,400,000
Pedestrian Trail Maintenance 117,165
Lower Rum River Watershed 40,000
Total Other 3,452,165
Gross City Levy 21,250,914$
CITY OF ANDOVER, MINNESOTA
2026 Property Tax Levy
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STATE OF MINNESOTA)
COUNTY OF ANOKA )
CITY OF ANDOVER )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that I have carefully compared the attached Resolution No.
R145-25 adopting the City of Andover 2026 Budget and 2026 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 2nd day of December 2025.
Michelle Hartner – City Clerk
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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.
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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 30th.
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 2026 Proposed Operating Budget and Proposed Tax
Levy on Tuesday, September 2, 2025 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 2, 2025. The adopted 2026
City Levy was also submitted to Anoka County and the Minnesota Department of Revenue by December 29, 2025.
The budget is prepared on an annual basis, and follows the calendar year, January 1st 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.
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Below is the 2026 Budget Development Calendar used to facilitate the necessary discussions and timelines between staff and City Council.
Date Activity Responsibility
March 25, 2025 Council Workshop to discuss budget guidelines.City Council / Staff
May 27, 2025 Council budget progress report distributed and Council budget discussion.Council / Staff
July 10 – 11, 2025 2026 Budget Decision packages prioritized and finalized.Admin / Mgmt Team
July 22, 2025 Council budget progress distributed. Receives 2026 Proposed Budget.City Council / Staff
August 26, 2025 City Council follow-up workshop for review of 2026 Proposed Budget. City Council / Staff
August 26, 2025 City Council preview of Proposed 2026 Tax Levy Presentation.City Council / Staff
September 1, 2025 State Department of Revenue (DOR) to certify levy limits for 2026.DOR
September 2, 2025 (Req.)City to adopt proposed 2026 tax levy and select public hearing dates.City Council
September 23, 2025
City Council Budget discussion – focus on Special Revenue Funds, Debt
Service Funds, Capital Projects Funds, Emterprise Funds & Internal
Service Funds.
City Council / Staff
September 30, 2025 (Req.)Proposed 2026 tax levy must be certified to County.Finance
September 30, 2025 (Req.)City to file proposed 2026 special levies with DOR Finance / DOR
October 28, 2025 City Council Budget discussion – focus on DSF & CPF.City Council / Staff
November 1 – 11, 2025*County Auditor to mail parcel specific notices.County
November 25, 2025 City Council preview of Public Hearing.City Council / Staff
December 1 - 13, 2025* (Req.)City conducts Public Hearing during this time frame. City Council
December 2, 2025 City of Andover Public hearing on 2026 Tax Levy and Operating Budget.City Council
December 2, 2025 City Council adopts 2026 Tax Levy and Operating Budget.City Council
December 29, 2025* (Req.)Deadline for staff to certify 2026 tax levy to State and County.Finance
CITY OF ANDOVER
2026 Budget Development Calendar
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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.
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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 an annual comprehensive 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 annual comprehensive 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.
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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.
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Determination of 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 (2026) against those projects planned between 2027 and 2030. 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.
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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 CIP 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:
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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.
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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. Collateralization. Full collateralization 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.
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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.
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Revenue Projections
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.
$0.00 $5.00 $10.00 $15.00 $20.00 $25.00
Prop Taxes
Charges for Svc
Tax Increments
Invest. Income
Intergov'l Rev
Spec Assess
Misc Rev
Millions
City of Andover
Major Revenue Sources Comparison
2026 Budget 2025 Est 2024 Actual 2023 Actual
Prop Taxes 41%
Charges for Svc
23%
Tax Increments 0%
Invest. Income
2%
Intergov'l Rev
22%
Spec Assess
7%
Misc Rev
5%
City of Andover
2026 Revenue by Source
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.
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Revenue Projections – Property Tax & Charges for Services
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Estimate 2026 Budget
Property Tax Charges for Services
General Property Taxes
Property taxes serve as a foundational revenue source for the General, Special Revenue, Debt Service, and Capital Projects Funds. Primarily utilized within the
General Fund, the levy is adjusted based on expenditure requirements and Council directives. For the 2026 budget, the City remains committed to a tax rate that
balances long-term competitiveness and staffing needs with infrastructure requirements. In response to rising market values and economic concerns, the Council
has established a 4.15% levy increase over 2025. This adjustment targets four key areas: inflationary pressures, capital replacement, street improvement funding,
and staff retention. As the City approaches full build-out, steady development and a growing tax base are expected to help offset future operational costs.
Charges for Services
The City generates service charges across multiple funds to support growth and maintain infrastructure. In the General and Special Revenue Funds, fees are
primarily tied to development services and recreational facility rentals. Internal Service Funds manage the costs of equipment maintenance and insurance. The most
significant growth is seen in the Enterprise Funds, where water, sewer, and storm water rates are adjusted annually based on professional rate studies and federal
mandates. These adjustments are necessary to keep pace with the rising costs of utility delivery as the City continues its expansion through 2026.
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Revenue Projections – Tax Increments and Intergovernmental Revenue
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Estimate 2026 Budget
Tax Increments Intergovernmental Revenue
Tax Increments
The City utilizes Tax Increment Financing (TIF) to fund redevelopment and service debt on related bonds. These funds are managed through the Capital Projects
Funds and are reviewed annually against the City's long-term capital goals. With the final existing district scheduled for decertification in early 2026, the City is
entering a new phase of development. Future TIF districts will be created sparingly, reserved for projects that satisfy the "but/for" requirement—demonstrating that
the development would not occur without City assistance—and clearly advance municipal objectives.
Intergovernmental
Intergovernmental revenues are distributed across the General, Special Revenue, Debt Service, and Capital Projects Funds. These funds consist of recurring state
aid—such as State Highway, Police, and Fire aid—as well as competitive grants from federal, state, and local agencies (e.g., CDBG and DNR grants). The City
continues to leverage state partnerships for critical utility work. Following a $6.1 million water main project in 2024, the 2026 Budget includes $8 million from the
MPCA and the State of Minnesota. This funding is dedicated to connecting properties in the Red Oaks Monitoring area to municipal water to address private well
contamination. The City previously utilized Municipal State Aid (MSA) advances for construction, with remaining allotments carried forward for eligible projects.
Notable past allocations include $2.46 million from the CARES Act (2020) and $3.5 million from the American Rescue Plan Act (2022–2024).
Because intergovernmental revenue often relies on one-time state or federal allocations, it remains a variable funding source rather than a consistent year-over-
year revenue stream.
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Revenue Projections – Investment Income and Special Assessments
-$2,000,000
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Estimate 2026 Budget
Investment Income Special Assessments
Investment Income
Investment income, generated from interest earned on City holdings, is distributed across all funds based on their respective average cash balances. This revenue
stream is primarily driven by two factors: prevailing interest rates and the total cash available for investment. While the City experienced market-value losses in 2021
and 2022 ($89,313 and $1,425,523, respectively) due to low interest rates and year-end market adjustments, a rebound occurred in 2023 as rates stabilized at
higher levels. Such fluctuations are standard in municipal accounting; unrealized gains and losses often become more pronounced during periods of rapid interest
rate volatility, but they typically stabilize over the long term.
Special Assessments
Special assessments serve as a critical revenue stream for the Debt Service and Capital Projects Funds. These funds are dedicated to retiring bonds for capital
improvements and reimbursing the City’s Capital Projects Funds for projects financed internally. The 2026 budget projections are derived from established
assessment payment schedules and an analysis of current residential development within the City of Andover. Revenue from this source is naturally variable; as it
is influenced by the scope and cost of street reconstructions determine the total amount assessable to benefiting properties and fluctuates based on when property
owners fulfill their assessment obligations. The City continues to manage long-term infrastructure debt through strategic bonding. Following the late 2021 bond
issuance for 2022–2023 projects, the City issued a second round of street reconstruction bonds in late 2024. These funds support projects through 2026, with a
portion of the costs being recovered via assessments on benefiting properties.
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Revenue Projections – Miscellaneous Revenue
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Estimate 2026 Budget
License & Permits Fines User Charges Miscellaneous Revenue
Miscellaneous Revenues
Licenses and Permits: Exclusive to the General Fund, these revenues are dictated by City-determined license rates, state-regulated fees, and the Uniform Building
Code. The 2026 projections are based on an estimate of 60 new single-family residential homes, each calculated at a building valuation of $300,000.
Fines: Fines are a General Fund revenue source collected via the State Court System. These funds are remitted to the City on a monthly basis and typically remain
stable with minimal year-over-year fluctuation.
User Charges: Located within the Capital Projects Funds, user charges are fees triggered by development agreements during the initiation of new residential or
commercial construction. While previous years saw significant spikes from large-scale projects—such as a 150-unit apartment complex in 2022 and a 175-unit senior
facility in 2025—the 2026 budget reflects a return to standard levels aligned with projected development activity.
Miscellaneous Revenue: This category captures unique revenue streams that do not fit standard classifications. Key components include:
• YMCA Lease & Reimbursements: A $635,000 annual payment (part of a 30-year agreement), plus reimbursements for natural gas and common space
maintenance.
• Wireless Infrastructure: Rental fees collected for the placement of wireless antennas on City property.
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Revenues:$16,182,461 Revenues:$2,772,068 Revenues:$5,573,458 Revenues:$19,431,872 Revenues:$7,507,635 Revenues:$2,076,528
Expenditures:$16,724,671 Expenditures:$2,948,490 Expenditures:$5,404,485 Expenditures:$27,050,927 Expenditures:$7,216,095 Expenditures:$2,069,810
- 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.
Enterprise Funds Internal Service FundsGeneral Fund Special Revenue Funds Debt Service Funds Capital Projects Funds
Governmental Funds Proprietary Funds
CITY OF ANDOVER
City of Andover - Budgeted Funds
2026 Budget Summary By Fund Type
Total Revenues: $53,544,022
Total Expenditures: $61,414,478
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Actual Adopted Estimate Budget
2024 2025 2025 2026
Fund Balance/Net Assets, January 1 70,586,319$ 81,191,775$ 81,191,775$ 78,971,509$
Revenues & Other Sources
General 15,713,865 15,218,547 15,554,860 16,182,461
Special Revenue 4,269,128 2,517,718 3,112,629 2,772,068
Debt Service 4,809,024 5,735,441 5,755,941 5,573,458
Capital Projects 25,132,103 12,523,306 16,888,765 19,431,872
Enterprise 8,153,051 7,007,532 7,351,713 7,507,635
Internal Service 1,977,344 1,969,601 1,994,973 2,076,528
Total Revenues & Other Sources:60,054,515 44,972,145 50,658,881 53,544,022
Total Available:130,640,834 126,163,920 131,850,656 132,515,531
Expenditures & Other Uses
General 14,047,240 15,718,155 16,719,322 16,724,671
Special Revenue 3,680,520 3,634,168 3,603,045 2,948,490
Debt Service 4,927,375 4,220,262 4,295,058 5,404,485
Capital Projects 18,395,153 19,266,214 18,011,988 27,050,927
Enterprise 6,758,851 6,835,691 8,327,103 7,216,095
Internal Service 1,639,920 1,919,851 1,922,631 2,069,810
Total Expenditures & Other Uses:49,449,059 51,594,341 52,879,147 61,414,478
Fund Balance/Net Assets, December 31 81,191,775$ 74,569,579$ 78,971,509$ 71,101,053$
Change in Fund Balance 10,605,456$ (6,622,196)$ (2,220,266)$ (7,870,456)$
15.02%-8.16%-2.73%-9.97%
CITY OF ANDOVER
2026 Budget Summary
Revenues and Expenditures Fund Summary
42
Actual Budget Estimate Budget
2024 2025 2025 2026
Fund Balance/Net Assets, January 1 70,586,319$ 81,191,775$ 81,191,775$ 78,971,509$
Revenues
General Property Taxes 18,018,721 20,449,084 20,449,084 21,295,914
Tax Increments 155,822 70,000 101,500 -
Special Assessments 1,087,685 2,187,000 1,717,400 3,737,400
Licenses and Permits 873,585 668,850 721,650 768,300
Intergovernmental 9,144,214 6,717,278 6,879,857 11,244,258
Charges for Services 12,033,539 11,087,369 11,553,576 11,752,268
Fines 81,143 50,500 55,500 60,500
Investment Income 3,056,000 258,250 1,285,329 1,243,500
User Charges 1,720,592 260,685 3,390,280 270,495
Meters 115,911 13,000 13,000 13,000
Miscellaneous 1,559,525 1,409,268 1,687,596 1,336,068
Total Revenues:47,846,737 43,171,284 47,854,772 51,721,703
Other Financing Sources
Operating Transfers In 2,873,232 1,800,861 2,800,861 1,822,319
Bond Proceeds 8,595,000 - - -
Proceeds from Sale of Property 28,325 - 3,248 -
Total Other Financing Sources:12,207,778 1,800,861 2,804,109 1,822,319
Total Revenues and Other Sources:60,054,515 44,972,145 50,658,881 53,544,022
Total Available:130,640,834 126,163,920 131,850,656 132,515,531
Expenditures
Personal Services 9,368,102 10,126,202 10,103,382 11,130,606
Supplies and Materials 2,034,798 2,241,681 2,234,751 2,268,306
Purchased Services 5,414,038 5,728,397 5,778,434 6,123,270
Other Services and Charges 16,872,713 21,693,131 21,633,816 18,261,111
Capital Outlay 8,381,754 5,783,807 6,032,845 16,437,000
Debt Service 4,504,422 4,220,262 4,295,058 5,371,866
Total Operating Expenditures:46,575,827 49,793,480 50,078,286 59,592,159
Other Uses
Operating Transfers Out 2,873,232 1,800,861 2,800,861 1,822,319
Total Other Uses:2,873,232 1,800,861 2,800,861 1,822,319
Total Expenditures and Other Uses:49,449,059 51,594,341 52,879,147 61,414,478
Fund Balance/Net Assets, December 31 81,191,775$ 74,569,579$ 78,971,509$ 71,101,053$
Change in Fund Balance 10,605,456$ (6,622,196)$ (2,220,266)$ (7,870,456)$
15.02%-8.16%-2.73%-9.97%
CITY OF ANDOVER
2026 Budget Summary
Revenues and Expenditures - All Funds
43
Special Debt Capital Internal
General Revenue Service Projects Enterprise Service Total
Fund Balance/Net Assets, January 1 12,051,613$ 2,414,476$ 5,161,805$ 44,261,057$ 13,462,957$ 1,619,601$ 78,971,509$
Revenues
General Property Taxes 12,783,591 195,000 4,905,158 3,412,165 - - 21,295,914
Tax Increments - - - - - - -
Special Assessments - - - 3,737,400 - - 3,737,400
Licenses and Permits 768,300 - - - - - 768,300
Intergovernmental 963,675 267,500 - 10,013,083 - - 11,244,258
Charges for Services 1,111,360 1,395,000 - - 7,184,380 2,061,528 11,752,268
Fines 60,500 - - - - - 60,500
Investment Income 185,000 25,500 23,000 880,000 115,000 15,000 1,243,500
User Charges - - - 270,495 - - 270,495
Meters - - - - 13,000 - 13,000
Miscellaneous 125,000 889,068 - 278,000 44,000 - 1,336,068
Total Revenues:15,997,426 2,772,068 4,928,158 18,591,143 7,356,380 2,076,528 51,721,703
Other Financing Sources
Operating Transfers In 185,035 - 645,300 840,729 151,255 - 1,822,319
Bond Proceeds - - - - - - -
Total Other Financing Sources:185,035 - 645,300 840,729 151,255 - 1,822,319
Total Revenues and Other Sources:16,182,461 2,772,068 5,573,458 19,431,872 7,507,635 2,076,528 53,544,022
Total Available:28,234,074 5,186,544 10,735,263 63,692,929 20,970,592 3,696,129 132,515,531
Expenditures
Personal Services 7,667,284 1,064,605 - - 1,567,536 831,181 11,130,606
Supplies and Materials 958,366 127,620 - - 657,400 524,920 2,268,306
Purchased Services 5,664,565 458,705 - - - - 6,123,270
Other Services and Charges 2,199,456 989,450 - 10,794,672 3,563,824 713,709 18,261,111
Capital Outlay 235,000 - - 15,805,000 397,000 - 16,437,000
Debt Service - - 5,371,866 - - - 5,371,866
Total Operating Expenditures:16,724,671 2,640,380 5,371,866 26,599,672 6,185,760 2,069,810 59,592,159
Other Uses
Operating Transfers Out - 308,110 32,619 451,255 1,030,335 - 1,822,319
Total Other Uses:- 308,110 32,619 451,255 1,030,335 - 1,822,319
Total Expenditures and Other Uses:16,724,671 2,948,490 5,404,485 27,050,927 7,216,095 2,069,810 61,414,478
Fund Balance/Net Assets, December 31 11,509,403$ 2,238,054$ 5,330,778$ 36,642,002$ 13,754,497$ 1,626,319$ 71,101,053$
Change in Fund Balance (542,210)$ (176,422)$ 168,973$ (7,619,055)$ 291,540$ 6,718$ (7,870,456)$
-4.50%-7.31%3.27%-17.21%2.17%0.41%-9.97%
CITY OF ANDOVER
2026 Budget Summary
Revenues and Expenditures by Fund Type
44
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 12,783,591$ 155,000$ -$ -$ 2,517,165$ -$ -$ 5,840,158$ 21,295,914$
Tax increment collections - - - - - - - - -
Licenses and permits 768,300 - - - - - - - 768,300
Intergovernmental 963,675 - 8,000,000 - 1,763,083 - - 517,500 11,244,258
Special assessments - - 5,000 1,020,000 2,710,000 - - 2,400 3,737,400
Charges for services 1,111,360 1,328,000 - - - - - 67,000 2,506,360
Fines 60,500 - - - - - - - 60,500
Investment income 185,000 10,000 175,000 200,000 225,000 - 100,000 218,500 1,113,500
Miscellaneous:
Park dedication fees - - - - - - - 131,400 131,400
Connection charges - - 96,490 15,705 - - - - 112,195
Rent - 638,000 - - - - - - 638,000
Other 125,000 201,068 - - - 28,000 - 326,900 680,968
Total revenues 15,997,426 2,332,068 8,276,490 1,235,705 7,215,248 28,000 100,000 7,103,858 42,288,795
Expenditures:
Current:
General government 4,253,317 - - - - - - 318,900 4,572,217
Public safety 7,549,747 - - - - - - - 7,549,747
Public works 2,623,655 - 50,000 - 5,759,929 - 4,618,071 134,294 13,185,949
Parks and recreation 1,707,488 2,093,900 - - - - - 35,000 3,836,388
Recycling 258,864 - - - - - - - 258,864
Economic development - - - - - 66,672 - 358,286 424,958
Unallocated 96,600 - - - - - - - 96,600
Capital outlay:
General government - - - - - - - 270,000 270,000
Public safety - - - - - - - 350,000 350,000
Public works - - 8,075,000 3,995,000 - - - 2,050,000 14,120,000
Parks and recreation 235,000 - - - - - - 1,065,000 1,300,000
Debt service:
Principal retirement - - - - - - - 4,005,000 4,005,000
Interest - - - - - - - 1,358,466 1,358,466
Paying agent fees - - - - - - - 8,400 8,400
Total expenditures 16,724,671 2,093,900 8,125,000 3,995,000 5,759,929 66,672 4,618,071 9,953,346 51,336,589
Revenues over (under) expenditures (727,245) 238,168 151,490 (2,759,295) 1,455,319 (38,672) (4,518,071) (2,849,488) (9,047,794)
Other financing sources (uses):
Transfers in 185,035 - 400,000 400,000 8,110 - - 677,919 1,671,064
Transfers out - (300,000) (151,255) - (200,000) - - (140,729) (791,984)
Total other financing sources (uses) 185,035 (300,000) 248,745 400,000 (191,890) - - 537,190 879,080
Net increase (decrease) in
fund balance (542,210) (61,832) 400,235 (2,359,295) 1,263,429 (38,672) (4,518,071) (2,312,298) (8,168,714)
Fund balance - January 1 12,051,613 1,038,123 9,150,145 9,261,862 10,567,001 143,374 4,518,071 17,158,762 63,888,951
Fund balance - December 31 11,509,403$ 976,291$ 9,550,380$ 6,902,567$ 11,830,430$ 104,702$ -$ 14,846,464$ 55,720,237$
CITY OF ANDOVER
Governmental Funds - Major Funds Breakdown
45
Actual Actual Actual Budget Estimate Budget
2022 2023 2024 2025 2025 2026
REVENUES
Property Taxes 9,974,141$ 10,663,259$ 11,526,021$ 12,188,182$ 12,188,182$ 12,783,591$
License and Permits 972,878 854,738 873,585 668,850 721,650 768,300
Intergovernmental Revenues 963,290 977,028 974,582 911,625 918,218 963,675
Charges for Services 1,295,429 1,447,507 1,391,734 966,910 1,084,990 1,111,360
Fines and Forfeits 55,983 70,683 81,143 50,500 55,500 60,500
Interest Income (189,494)377,355 439,829 100,000 150,000 185,000
Miscellaneous Revenue 188,395 185,646 205,726 155,300 259,140 125,000
Transfers 197,081 228,772 221,246 177,180 177,180 185,035
TOTAL REVENUES 13,457,703$ 14,804,988$ 15,713,866$ 15,218,547$ 15,554,860$ 16,182,461$
CITY OF ANDOVER
Revenue Comparison - General Fund
-$2.00 $2.00 $6.00 $10.00 $14.00
Transfers
Misc. Rev
Interest Income
Fines & Forfeits
Charges for Svcs
Intergov'l Rev
Licenses & Permits
Property Taxes
Millions
City of Andover
2026 Revenue Comparison -General Fund
Budget 2026 Estimate 2025 Actual 2024 Actual 2023 Actual 2022
Transfers
1%
Misc. Rev
1%Interest Income
1%
Fines & Forfeits
0%
Charges for Svcs 7%
Intergov'l Rev
6%
Licenses &
Permits
5%
Property Taxes
79%
City of Andover
2026 Revenue by Source -General Fund
46
Actual Actual Actual Budget Estimate Budget
2022 2023 2024 2025 2025 2026
EXPENDITURES
General Government 3,205,213$ 24%3,291,004$ 25%3,397,231$ 24%4,110,680$ 26%4,137,268$ 25%4,253,317$ 25%
Public Safety 5,705,358 44%5,800,627 44%6,386,663 45%6,906,908 44%6,851,042 41%7,549,747 45%
Public Works 3,624,481 28%3,904,812 30%4,165,344 30%4,603,967 29%4,634,412 28%4,825,007 29%
Other 567,396 4%223,436 2%98,003 1%96,600 1%1,096,600 7%96,600 1%
TOTAL EXPENDITURES 13,102,448$ 13,219,879$ 14,047,241$ 15,718,155$ 16,719,322$ 16,724,671$
CITY OF ANDOVER
Expenditure Comparison - General Fund
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00
Other
Public Works
Public Safety
General Gov't
Millions
City of Andover
2026 Expenditure Comparison -General Fund
Budget 2026 Estimate 2025 Actual 2024 Actual 2023 Actual 2022
Other1%
Public Works
29%
Public Safety
45%
General Gov't25%
City of Andover
2026 Expenditures by Function -General Fund
47
Actual Actual Actual Actual Actual Budget*Estimate Requested*
2020 2021 2022 2023 2024 2025 2025 2026 $%
GENERAL GOVERNMENT
Mayor and Council 95,519$ 95,658$ 95,366$ 99,860$ 100,675$ 111,874$ 111,874$ 112,049$ 175 0.16%
Administration 187,758 229,314 245,222 278,092 261,677 319,666 319,666 316,770 (2,896)-0.91%
Newsletter 22,156 22,945 24,631 27,733 29,515 36,000 36,000 36,000 0 0.00%
Human Resources 16,181 20,836 19,905 21,172 20,257 99,722 102,922 101,144 1,422 1.43%
Attorney 195,721 199,809 206,399 207,922 212,106 227,836 227,836 236,709 8,873 3.89%
City Clerk 166,221 175,177 184,318 193,217 209,789 212,760 212,760 216,425 3,665 1.72%
Elections 91,643 20,260 75,115 28,002 110,108 92,088 92,088 117,634 25,546 27.74%
Finance 294,501 307,009 320,729 335,992 340,890 385,635 385,635 404,253 18,618 4.83%
Assessing 154,482 128,829 131,097 136,705 136,094 161,000 161,000 150,000 (11,000)-6.83%
Information Services 187,703 185,642 226,588 235,842 242,024 277,824 277,824 255,855 (21,969)-7.91%
Planning & Zoning 491,395 490,576 473,193 473,193 467,959 583,871 559,259 618,116 34,245 5.87%
Engineering 566,224 594,720 649,664 703,515 727,294 789,877 792,877 870,604 80,727 10.22%
Facility Management 475,083 548,666 552,986 549,759 538,843 812,527 857,527 817,758 5,231 0.64%
Total General Gov 2,944,587 3,019,441 3,205,213 3,291,004 3,397,231 4,110,680 4,137,268 4,253,317 142,637 3.47%
PUBLIC SAFETY
Police Protection 3,114,623 3,287,046 3,261,423 3,347,315 3,625,598 3,936,982 3,936,982 4,203,269 266,287 6.76%
Fire Protection 1,508,854 1,706,876 1,961,915 1,926,998 2,219,474 2,332,343 2,299,717 2,622,597 290,254 12.44%
Protective Inspection 519,183 519,787 464,560 501,561 512,032 586,874 563,634 671,886 85,012 14.49%
Emergency Management 17,227 15,203 12,296 19,958 21,927 39,759 39,759 40,495 736 1.85%
Animal Control 2,347 3,517 5,164 4,795 7,632 10,950 10,950 11,500 550 5.02%
Total Public Safety 5,162,234 5,532,429 5,705,358 5,800,627 6,386,663 6,906,908 6,851,042 7,549,747 642,839 9.31%
PUBLIC WORKS
Streets and Highways 686,978 804,392 788,330 899,542 1,007,344 1,056,369 1,066,369 1,184,117 127,748 12.09%
Snow and Ice Removal 496,668 540,226 752,396 771,857 701,631 925,753 925,753 927,172 1,419 0.15%
Street Signs 257,281 196,782 194,276 169,472 215,722 229,960 229,960 240,966 11,006 4.79%
Traffic Signals 23,045 33,362 28,150 29,471 44,366 44,000 44,000 44,000 0 0.00%
Street Lighting 34,211 36,533 36,142 29,975 35,493 45,400 45,400 45,400 0 0.00%
Street Lights - Billed 152,181 156,841 158,028 151,879 151,662 182,000 182,000 182,000 0 0.00%
Park & Recreation 1,426,233 1,505,145 1,482,060 1,665,607 1,806,295 1,853,048 1,875,700 1,927,488 74,440 4.02%
Natural Resource Preservation 9,821 9,738 15,932 10,946 11,843 17,207 15,000 15,000 (2,207)-12.83%
Recycling 228,124 239,607 169,167 176,063 190,988 250,230 250,230 258,864 8,634 3.45%
Total Public Works 3,314,542 3,522,626 3,624,481 3,904,812 4,165,344 4,603,967 4,634,412 4,825,007 221,040 4.80%
OTHER 1,012,778 766,109 567,396 223,436 98,003 96,600 1,096,600 96,600 0 0.00%
Total Other 1,012,778 766,109 567,396 223,436 98,003 96,600 1,096,600 96,600 0 0.00%
GRAND TOTAL 12,434,141$ 12,840,605$ 13,102,448$ 13,219,879$ 14,047,241$ 15,718,155$ 16,719,322$ 16,724,671$ 1,006,516 6.40%
Change (*)
CITY OF ANDOVER
General Fund - Expenditure Budget Summary Totals - By Department
Budget Year 2026
48
Adopted
Annual
2026 2027 2028 2029 2030 2031 Increase
REVENUES
Property Taxes 12,783,591$ 13,231,017$ 13,694,103$ 14,173,397$ 14,669,466$ 15,182,897$ 3.50%
License and Permits 768,300 791,349 815,089 839,542 864,728 890,670 3.00%
Intergovernmental Revenues 963,675 992,585 1,022,363 1,053,034 1,084,625 1,117,164 3.00%
Charges for Current Services 1,111,360 1,144,701 1,179,042 1,214,413 1,250,845 1,288,370 3.00%
Fines and Forfeits 60,500 62,315 64,184 66,110 68,093 70,136 3.00%
Interest Income 185,000 190,550 196,267 202,155 208,220 214,467 3.00%
Miscellaneous Revenue 125,000 128,750 132,613 136,591 140,689 144,910 3.00%
Transfers 185,035 190,586 196,304 202,193 208,259 214,507 3.00%
TOTAL REVENUES 16,182,461 16,731,853 17,299,965 17,887,435 18,494,925 19,123,121
EXPENDITURES
General Government 4,253,317 4,338,383 4,425,151 4,513,654 4,603,927 4,696,006 2.00%
Public Safety 7,549,747 7,776,239 8,009,526 8,249,812 8,497,306 8,752,225 3.00%
Public Works 4,825,007 4,945,632 5,069,273 5,196,005 5,325,905 5,459,053 2.50%
Other 96,600 98,049 99,520 101,013 102,528 104,066 1.50%
TOTAL EXPENDITURES 16,724,671 17,158,303 17,603,470 18,060,484 18,529,666 19,011,350
CHANGE IN FUND BALANCE (542,210)$ (426,450)$ (303,505)$ (173,049)$ (34,741)$ 111,771$
Conclusion:
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 sheriff's contract. Health insurance premiums were originally
projected to go up 35.0%in 2026; but with a rate cap built into the contract, premiums increased by 15%. The sheriff's contract, which represents $4.2m of
the total budget in 2026, is reflecting a 6.76% increase.
CITY OF ANDOVER
General Fund
Five Year Financial Projections
Projections
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.
49
2023 2024 2025 2026 2023 2024 2025 2026
Actual Current Current Budget Actual Actual Current Budget
General Fund Special Revenue Funds
General Government Community Center 6.21 6.21 6.18 5.82
Administration 1.40 1.29 1.34 1.50 Drainage & Mapping 0.08 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 1.86 2.13 2.00 1.64 ROW Mgmt / Utility 0.18 0.19 0.19 0.18
Elections 0.20 0.19 0.19 0.25 6.55 6.56 6.53 6.16
Financial Adminstration 2.01 2.00 2.01 2.01
Information Systems 0.91 0.91 0.91 0.66 Enterprise Funds
Planning & Zoning 3.28 3.22 3.51 4.00 Water 6.03 5.79 6.06 5.32
Engineering 5.19 5.09 5.24 5.36 Sewer 2.72 3.15 3.40 3.38
Facility Management 0.84 0.85 0.83 0.87 Storm Sewers 2.06 2.10 2.19 2.33
Total General Government 15.77 15.76 16.11 16.37 10.81 11.04 11.65 11.03
Public Safety Internal Service Funds
Fire Protection 5.01 5.34 5.36 7.54 Central Equipment 3.50 3.44 3.44 3.39
Protective Inspection 3.74 3.46 3.65 4.28 Risk Mgmt 0.10 0.10 0.10 0.10
Emergency Management 0.05 0.05 0.05 0.05 3.60 3.54 3.54 3.49
Total Public Safety 8.80 8.85 9.06 11.87
Grand Total 64.83 64.39 64.93 67.00
Public Works
Streets & Highways 6.23 6.57 5.46 5.99
Snow & Ice 3.28 1.41 2.52 2.25
Street Signs 1.13 1.33 1.26 1.24
Parks & Recreation 7.80 8.43 7.95 7.68
Natural Resource Preservation 0.02 - - -
Recycling 0.84 0.90 0.85 0.92
Total Public Works 19.30 18.64 18.04 18.08
Total General Fund 43.87 43.25 43.21 46.32
Note: A majority of employees provide services to various cost centers and are allocated accordingly. 2023 & 2024 are based on actual hours charged to various departments.
CITY OF ANDOVER
2026 FTE Summary
50
Building Park & Recreation - Projects
Replacement - Permit & Scheduling Software 15,000$ Annual Miscellaneous Projects 25,000$
Annual Park Tree Additions 10,000
Community Center Tom Anderson Trail - Bench Additions 5,000
Replacement - Door Hardware 15,000 Skate Park - Expansion & Improvements 250,000
Replacement - Field House Lighting 75,000 Sunshine Park - West & South Parking Lot Lights 30,000
90,000 Hawkridge Park - Pave Parking Lot 150,000
Oakview Park - Improvements 20,000
Engineering 490,000
New Development Projects 220,000
Pedestrian Trail Maintenance 70,000 Sanitary Sewer
New Pedestrian Trail & Sidewalk Segments 1,700,000 Rural Reserve - Area Analysis & Sanitary Sewer 3,850,000
Pedestrian/Park Trail Reconstruction 500,000 Replacement - Locating Equipment 7,000
Replacement - Chevrolet Tahoe #02-16 65,000 3,857,000
2,555,000
Storm Sewer
Facility Management Storm Sewer Improvements 74,000
Annual Parking Lot Maintenance / Replacement 45,000 Replacement - Street Sweeper #06-171 370,000
City Hall Remodel 175,000 444,000
Replacement - Salt Shed Roof 30,000
Replacement - Emergency Generator FS #3 50,000 Streets - Equipment
Inspection of Switch Gear 15,000 Replacement - Dump Truck w/ Snow Removal #00-198 350,000
Supplemental Heat - PW Wash Bay 55,000
370,000 Streets - Roadways
Annual Street Seal Coat Project 160,000
Fire Annual Pavement Markings 100,000
Replacement - Rescue 21 #4819 350,000 Curb, Sidewalk and Ped Ramp Replacement 120,000
Annual Street Reconstruction 5,065,000
Information Technology Street Mill & Overlay 85,000
Replacement - Watchfire Sign CH 80,000 Gravel Road Improvement 23,000
Replacement - SCALE DR Solution 20,000 Intersection Upgrades 1,900,000
100,000 Street Full Depth Reclamation 2,690,000
Pavement Rejuvenator Application 175,000
Park & Recreation - Operations 10,318,000
Replace/Repair Play Structures - Various Parks 200,000
Replace/Repair Major Park Projects - Various Parks 35,000 Water
Replacement - One Ton Truck w/ Plow #07-577 110,000 Replacement - Residential Meters 100,000
345,000$ Water Main Gate Valve Rehabilitation 50,000
Security Cameras at Towers and Well Houses 20,000
Replacement - WTP Valve Actuators 95,000
WTP Bachwash Pump Maintenance 120,000
New - WTP Effluent Valve Control 40,000
425,000
Grand Total 19,709,000$
CITY OF ANDOVER
2026 Capital Improvement Plan
Projects By Department - Use of Funds
51
Assessments 3,710,000$
Capital Equipment Reserve 975,000
Community Center Operations 90,000
Construction Seal Coating Fund 10,000
Facility Maintenance - Building Fund 370,000
G.O. Bonds 3,798,750
General Fund 500,000
Grant 500,000
Municipal State Aid Funds 1,150,000
Park Dedication Funds 490,000
Road & Bridge Fund 2,719,250
Sanitary Sewer Fund 3,500
Sewer Trunk Fund 2,995,000
Storm Sewer Fund 444,000
Trail Funds 1,450,000
Water Fund 378,500
Water Trunk Fund 125,000
Total 19,709,000$
CITY OF ANDOVER
2026 Capital Improvement Plan
Sources of Funds
52
CITY OF ANDOVER, MINNESOTA
2026 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.
53
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54
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 11,549,450$ 13,216,075$ 13,216,075$ 12,051,613$
Revenues
General Property Taxes 11,526,021 12,188,182 12,188,182 12,783,591
Licenses and Permits 873,585 668,850 721,650 768,300
Intergovernmental 974,582 911,625 918,218 963,675
Charges for Services 1,391,734 966,910 1,084,990 1,111,360
Fines 81,143 50,500 55,500 60,500
Investment Income 439,829 100,000 150,000 185,000
Miscellaneous Revenue 205,725 155,300 259,140 125,000
Total Revenues:15,492,619 15,041,367 15,377,680 15,997,426
Other Sources
Transfers In 221,246 177,180 177,180 185,035
Total Revenues and Other Sources:15,713,865 15,218,547 15,554,860 16,182,461
Total Available:27,263,315 28,434,622 28,770,935 28,234,074
Expenditures
Personal Services 6,416,476 7,019,657 6,922,472 7,667,284
Supplies and Materials 779,240 940,041 954,241 958,366
Purchased Services 4,600,741 5,365,555 5,427,055 5,664,565
Other Services and Charges 1,872,252 2,157,902 2,157,902 2,199,456
Capital Outlay 284,831 235,000 257,652 235,000
Total Expenditures:13,953,540 15,718,155 15,719,322 16,724,671
Other Uses
Transfers Out 93,700 - 1,000,000 -
Total Expenditures and Other Uses:14,047,240 15,718,155 16,719,322 16,724,671
Fund Balance, December 31 13,216,075$ 12,716,467$ 12,051,613$ 11,509,403$
Change in Fund Balance 1,666,625$ (499,608)$ (1,164,462)$ (542,210)$
14%-4%-9%-4%
Description
City of Andover
2026 Budget - General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
55
Fund: 0101 - General Department:
Cost Center: 41100 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
One Mayor and Four Council Members
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 55,979$ 59,878$ 59,878$
Supplies & Materials 34,278 38,316 38,471
Other Services / Charges 2,524 2,680 2,700
Purchased Services 7,894 11,000 11,000 Process Used TOTAL 100,675$ 111,874$ 112,049$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Council Meetings (Regular)24 24 24 Actual Current Budgeted
Special Workshops 16 15 16 Expenditures Per Capita 2024 2025 2026
Agenda Items - Special Workshops 60 92 80 Population - Estimates 32,596 32,796 32,996
EDA Meetings 9 6 8 Monthly 0.26$ 0.28$ 0.28$
Agenda Items - EDA 47 31 35 Annual 3.09$ 3.41$ 3.40$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Mayor & Council
City Council
A D O P T E D 2 0 2 6 B U D G E T
The City Council exercises the legislative power of the City by which all matters of policy are
determined, as provided by the form of government. Council exercises budgetary control
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
citizen committees to render advice on legislative and city issues. Council members respond
to constituent concerns and questions by working with City administration to address
community service needs.
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 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.
No major changes planned for Budgeted 2026.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
56
Fund: 0101 - General Department:Administration
Cost Center: 41200 Director/Manager:City Administrator
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 1.29 1.34 1.50
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 237,418$ 290,554$ 284,720$
Supplies & Materials 6,653 10,400 14,050
Process Used Other Services / Charges 17,606 18,712 18,000
Purchased Services - - -
TOTAL 261,677$ 319,666$ 316,770$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Regular Council Agenda Items 373 421 400 Actual Current Budgeted
Council Workshops Attended 13 11 11 Expenditures Per Capita 2024 2025 2026
Council Meetings Attended 24 24 24 Population - Estimates 32,596 32,796 32,996
Staff Meetings Held 52 52 52 Monthly 0.67$ 0.81$ 0.80$
Annual 8.03$ 9.75$ 9.60$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
A D O P T E D 2 0 2 6 B U D G E T
The City Administrator oversees all city operations and activities as directed by the City
Council. Primary responsibilities include directing the administration of City affairs;
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
Council adoption. Responsible for keeping Council fully advised as to the financial
condition and needs of the organization.
Policy goals and direction are translated in to management objectives to be administered
and delegated to appropriate City departments for implementation and achievement.
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
with the administrator to resolve issues, review projects and address changing community
service dynamics.
No significant changes planned for Budgeted 2026. COLA and employee benefit
increases continue to impact department expenditures.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
57
Fund: 0101 - General Department:
Cost Center: 41210 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Process Used Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Supplies & Materials 17,515 19,000 19,000
Other Services / Charges - - -
Purchased Services 12,000 17,000 17,000 TOTAL 29,515$ 36,000$ 36,000$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of Meetings Held 6 6 6
Newsletters Published 6 6 6 Actual Current Budgeted
Public Circulation 10,890 11,000 11,000 Expenditures Per Capita 2024 2025 2026
Staff Preparation Hours 120 120 120 Population - Estimates 32,596 32,796 32,996
Monthly 0.08$ 0.09$ 0.09$
Annual 0.91$ 1.10$ 1.09$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Newsletter
Newsletter Coordinator
A D O P T E D 2 0 2 6 B U D G E T
The City publishes a newsletter containing articles regarding important municipal service
news. Funding for publication is provided through general tax levies and is distributed to
every household and business located with Andover's corporate boundaries.
The City has an active newsletter committee comprised of Council members, and staff
who meet to determine newsletter articles, format and coordinate the development of the
newsletter publication. Each issue is reviewed by City departments to ensure accuracy
and appropriate content. Starting in late 2017, the newletter is now assembled in-house
and contracted out for printing and distribution to all households and businesses. Articles
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.
Newsletter setup, printing and postage costs continue to increase. Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
58
Fund: 0101 - General Department:
Cost Center: 41230 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.08 0.08 0.08
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 9,857$ 11,295$ 12,717$
Supplies & Materials 2,801 4,665 4,665
Other Services / Charges 5,062 5,500 5,500
Purchased Services 2,537 81,462 78,262
TOTAL 20,257$ 102,922$ 101,144$
Process Used
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026 Actual Current Budgeted
Workers Comp Mod Factor 0.8 0.96 1.85 Expenditures Per Capita 2024 2025 2026
Premium change in health insurance -4.00%9.50%15.00%Population - Estimates 32,596 32,796 32,996
Hours spent on labor relations 0 40 10 Monthly 0.05$ 0.26$ 0.26$
Hours spent on benefit administration 100 20 40 Annual 0.62$ 3.14$ 3.07$
Employees hired (Seasonal/FT/PT)15 12 15
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Human Resources
Human Resources Manager
A D O P T E D 2 0 2 6 B U D G E T
Personnel activities support the City's human resource needs in the areas of recruitment,
selection, development, training and assessment of organizational needs. Employee
benefits, 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 benefits provide the City with the ability to interpret and manage labor components
of providing City services. Conducting and facilitating employee training in the areas of
customer service, safety training and programs designed to enhance the productivity and
performance of the organization. ACA requirements increase benefits administration.
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 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.
Purchased Services in Current 2025 includes funding for market rate increases for some
employees ($75,000). Budget 2026 includes the implementation of new MNPFL and a
classification and compensation study.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
59
Fund: 0101 - General Department:
Cost Center: 41240 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Supplies & Materials - - -
Other Services / Charges - - -
Purchased Services 212,106 227,836 236,709
Process Used TOTAL 212,106$ 227,836$ 236,709$
Service Expenditure Highlights
Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.54$ 0.58$ 0.60$
Annual 6.51$ 6.95$ 7.17$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Attorney
City Administrator
A D O P T E D 2 0 2 6 B U D G E T
The City Attorney provides City Council and staff with research and support on issues of a
legal matter. The City Attorney also serves as the chief prosecuting attorney for the 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.
Attorney services are provided to the City through an annual contract with the Hawkins &
Baumgartner, P.A.
No significant changes planned for Budgeted 2026. A 4% increase in contracted
expenditures is included.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
60
Fund: 0101 - General Department:
Cost Center: 41300 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 2.13 2.00 1.64
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 180,042$ 181,474$ 185,125$
Supplies & Materials 1,564 2,250 2,350
Other Services / Charges 28,050 28,836 28,750
Process Used Purchased Services 133 200 200
TOTAL 209,789$ 212,760$ 216,425$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Council packets (hardcopy)309 140 80
Council packets (emailed)1,584 432 0
Licenses Issued 387 335 320 Actual Current Budgeted
Assessment Searches 370 281 290 Expenditures Per Capita 2024 2025 2026
False Alarm Letters 0 0 0 Population - Estimates 32,596 32,796 32,996
Monthly 0.54$ 0.54$ 0.55$
Annual 6.44$ 6.49$ 6.56$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
City Clerk
City Clerk
A D O P T E D 2 0 2 6 B U D G E T
The City Clerk's office prepares the agenda and materials for council meetings; is
responsible for special assessments, elections, homestead filing, licensing of alcohol 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.
Activities are conducted pursuant to city ordinances, policies and state law.
No major changes planned for Budgeted 2026. COLA and employee benefits continue to
increase every year.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
61
Fund: 0101 - General Department:
Cost Center: 41310 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.19 0.19 0.25
Process Used Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 104,063$ 78,288$ 103,334$
Supplies & Materials 833 2,000 2,000
Other Services / Charges - - -
Purchased Services 5,212 11,800 12,300 TOTAL 110,108$ 92,088$ 117,634$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Total number of voters 21,133 Non election 20,000
Number of Precincts 10 year 10
Registered voters 23,160 23,160
Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.28$ 0.23$ 0.30$
Annual 3.38$ 2.81$ 3.57$
C I T Y O F A N D O V E R , M I N N E S O T A
Elections
City Clerk
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
Conduct State and General Elections in accordance with State Law.
Notify voters of their precincts; administer filings for local offices; proof ballots; post and
publish notices; hire sufficient number of judges; arrange for judges' training; notify polling
places of elections; conduct public accuracy tests to ensure machine accuracy and conduct
absentee voting at city hall.
No major changes planned for Budgeted 2026. COLA and employee benefits continue to
increase every year.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
62
Fund: 0101 - General Department:
Cost Center: 41400 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 2.00 2.01 2.01
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 273,088$ 301,929$ 318,203$
Process Used Supplies & Materials 8,135 10,750 10,700
Other Services / Charges 32,612 35,956 37,900
Purchased Services 27,055 37,000 37,450 TOTAL 340,890$ 385,635$ 404,253$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Promote use of electronic methods of processing utility payments and payroll:
Utility payments made electronically 67%72%75%
Payroll checks issued 256 0 250
Payroll - direct deposit 2,828 2,901 2,950
Utility accounts - Storm Water 11,248 11,291 11,350
Utility accounts - Water 7,212 7,380 7,500 Actual Current Budgeted
Utility accounts - Sewer 8,058 8,162 8,250 Expenditures Per Capita 2024 2025 2026
Utility accounts - Street Lights 7,909 7,909 7,909 Population - Estimates 32,596 32,796 32,996
Number of delinquent accounts 651 797 700 Monthly 0.87$ 0.98$ 1.02$
Annual 10.46$ 11.76$ 12.25$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Financial Administration
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
This department is responsible for administration of the City's financial affairs. This
includes maintaining accounting records for all operations, custody and investment of
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
the Capital Improvement Plan.
The financial affairs are conducted in compliance with Federal and State laws, Generally
Accepted Accounting Principles and various City policies.
No major changes planned for Budgeted 2026. COLA and employee benefits continue to
increase every year. Audit fees increase each year.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
63
Fund: 0101 - General Department:
Cost Center: 41410 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Process Used Supplies & Materials - - -
Other Services / Charges - - -
Purchased Services 136,094 161,000 150,000
TOTAL 136,094$ 161,000$ 150,000$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Residential Parcels Assessed 11,122 11,203 11,275 Actual Current Budgeted
Commercial Parcels Assessed 167 173 175 Expenditures Per Capita 2024 2025 2026
Apartments Assessed 24 24 24 Population - Estimates 32,596 32,796 32,996
Unimproved Parcels Assessed 543 575 575 Monthly 0.35$ 0.41$ 0.38$
Exempt Parcels 502 503 503 Annual 4.18$ 4.91$ 4.55$
C I T Y O F A N D O V E R , M I N N E S O T A
Assessing
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
This department is responsible for assessment for all real and personal property for
valuation purposes. The City contracts with Anoka County for this service.
The assessed valuation is determined by inspections of real and personal property within the
city. The Assessor follows State statutes and market trends to determine taxable market
value.
No major changes planned for Budgeted 2026, bringing the budget inline with actual
expenditures.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
64
Fund: 0101 - General Department:
Cost Center: 41420 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.91 0.91 0.66
Actual Current Budgeted
Process Used Service Expenditures 2024 2025 2026
- City website updated and monitored daily Personal Services 135,372$ 141,174$ 107,955$
- Train employees as needed on new and existing software Supplies & Materials 36,011 51,850 55,850
- Network data backup monitored daily Other Services / Charges 65,562 77,300 84,550
- Maintain phone systems including voice mail and assist in future upgrades Purchased Services 5,079 7,500 7,500
- Maintain all City servers and remote users TOTAL 242,024$ 277,824$ 255,855$
- Research new technology for current and future growth
- Purchase new equipment as needed
- Maintain SPAM firewall for unauthorized emails
- Maintain network security for prevention of unauthorized access
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of PC's / Servers 70 74 74
Number of Printers 20 16 16
Number of Phones Maintained 74 85 85 Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.62$ 0.71$ 0.65$
Annual 7.42$ 8.47$ 7.75$
C I T Y O F A N D O V E R , M I N N E S O T A
Information Systems
City Administrator
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
This department is responsible for the continued operations of the City's information
technology equipment. The department also provides assistance to computer users to
provide timely, accurate and meaningful data for program monitoring and decision-
making.
In the 2026 budget, IT salaries will be allocated directly to benefiting departments rather
than recorded an interdepartmental fee revenue.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
65
Fund: 0101 - General Department:
Cost Center: 41500 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 3.22 3.51 4.00
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Process Used Personal Services 453,272$ 530,011$ 589,188$
Supplies & Materials 2,714 14,800 13,550
Other Services / Charges 4,530 6,150 7,080
Purchased Services 7,443 8,298 8,298
TOTAL 467,959$ 559,259$ 618,116$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Subdivisions Processed 1 8 4
Commercial Site Plans Processed 8 6 2
Conditional Use Permits 8 13 3
Code Amendments 6 4 2
Comp Plan Amendments 2 1 1
Rezonings 0 1 3
Variances 0 4 1 Actual Current Budgeted
Lot Splits 1 1 2 Expenditures Per Capita 2024 2025 2026
P&Z Agendas 11 12 16 Population - Estimates 32,596 32,796 32,996
Vac of Easements 6 5 3 Monthly 1.20$ 1.42$ 1.56$
IUP - Interim Use Permit 4 1 2 Annual 14.36$ 17.05$ 18.73$
Abatements 9 8 8
Rental Licenses 137 145 140
Planning and Zoning
Community Development Director
A D O P T E D 2 0 2 6 B U D G E T
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Review residential and commercial developments for conformance with City's
Comprehesive Plan, Ordinances, and Development Policies. Prepare ordinances for
Council adoption with the implementation and enforcement of ordinances as directed.
Review planning and zoning requests and make recommendations in accordance with
adopted regulations.
The Planning Department processes development proposals, reviews plats, reviews
commercial site plans and responds to citizens' requests for rezonings, special use
permits, comprehensive plan amendments and variances. The Zoning Ordinance is
the primary source of information. However, the Andover Review Committee and the
City Attorney are also utilized before applications are processed before the Planning
and Zoning Commission and City Council.
No major changes planned for Budgeted 2026.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
66
Fund: 0101 - General Department:
Cost Center: 41600 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 5.09 5.24 5.36
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 680,612$ 726,765$ 805,424$
Supplies & Materials 14,664 26,900 23,900
Process Used Other Services / Charges 27,824 36,912 38,980
Purchased Services 4,194 2,300 2,300 TOTAL 727,294$ 792,877$ 870,604$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
1. Number of Projects Constructed 15 13 13
2. Number of Projects Reviewed:
Prelimary Plats 3 5 3
Commercial Site Plans 8 7 5 Actual Current Budgeted
3. Number of Utility permits issued 83 102 95 Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 1.86$ 2.01$ 2.20$
Annual 22.31$ 24.18$ 26.39$
C I T Y O F A N D O V E R , M I N N E S O T A
Engineering
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
The Engineering Division provides review, design and construction related support for the
development and maintenance of the City infrastructure. The Department maintains and
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.
Engineering support is provided for the development and long-term maintenance of the City
infrastructure (i.e. water, sanitary sewer, water main, streets, trails, parks, facilities, etc.).
Engineering reviews plans for all commercial and residential developments to ensure
compliance with City standards.
For Budget 2026, the department is reorganizing positions to add another engineer midyear.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
67
Fund: 0101 - General Department:
Cost Center: 41900 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.85 0.83 0.87
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 107,343$ 114,207$ 123,378$
Process Used Supplies & Materials 14,700 46,310 44,750
Other Services / Charges 263,542 399,970 384,490
Purchased Services 153,258 297,040 265,140
TOTAL 538,843$ 857,527$ 817,758$
Service Expenditures By Category
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026 Actual Current Budgeted
22 23 23 Expenditures Per Capita 2024 2025 2026
Parking Lots 16 16 16 Population - Estimates 32,596 32,796 32,996
Monthly 1.38$ 2.18$ 2.07$
Annual 16.53$ 26.15$ 24.78$
C I T Y O F A N D O V E R , M I N N E S O T A
Facilities Management
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
Buildings
Responsible for the custodial, mechanical, structural and ground maintenance of the City
Hall and Public Works campus, park buildings and fire stations.
No major changes planned for Budget 2026.
The facilities are to be maintained in a healthy, safe and sanitary condition and to work
toward facility designs that will maximize operational effeciency while projecting a positive
public image and work environment.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
68
Fund: 0101 - General Department:
Cost Center: 42100 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Process Used Personal Services -$ -$ -$
Supplies & Materials - - -
Other Services / Charges - - -
Purchased Services 3,625,598 3,936,982 4,203,269
TOTAL 3,625,598$ 3,936,982$ 4,203,269$
Service Expenditures By Category
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of Part I & II Offenses (arrests)564 482 500
Number of Calls for Services 13,270 12,824 13,000 Actual Current Budgeted
Number of Traffic Arrests 1,179 1,040 1,100 Expenditures Per Capita 2024 2025 2026
Number of Patrol Hours 26,280 26,280 26,280 Population - Estimates 32,596 32,796 32,996
Number of School Liaison Hours 1,213 1,213 1,213 Monthly 9.27$ 10.00$ 10.62$
Annual 111.23$ 120.04$ 127.39$
C I T Y O F A N D O V E R , M I N N E S O T A
Police Protection
City Administrator
A D O P T E D 2 0 2 6 B U D G E T
Enforce state laws and city ordinances as directed to provide the public with law
enforcement services in the area of patrol, investigation, school liaison, crime
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.
The City of Andover contracts with the Anoka County Sheriff's Office to provide a wide
range of public safety and law enforcement services. The Sheriff's Office serves as a
member of the City's management team, and works with the City to address a wide
range of public safety concerns and issues. Responses to citizens service requests
are handled by deputies in accordance with established procedures and public safety
circumstances. The Sheriff's Office also provides school liaison officers in community
schools, prepares news articles and performs a variety of community safety
programming.
The 2026 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 policing,
and 2 patrol investigators. The primary driver of the cost increase in 2026 is deputy
salary increases to remain competitive in the market.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
69
Fund: 0101 - General Department:
Cost Center: 42200 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 5.34 5.36 7.54
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 1,623,033$ 1,696,320$ 2,008,570$
Supplies & Materials 214,576 223,920 219,000
Other Services / Charges 298,229 322,740 340,790
Purchased Services 44,321 56,737 54,237
Process Used Capital Outlay 39,315 - -
TOTAL 2,219,474$ 2,299,717$ 2,622,597$
Service Expenditure Highlights
Actual Current Budgeted Actual Current Budgeted
Performance Measures 2024 2025 2026 Expenditures Per Capita 2024 2025 2026
Fire Responses 585 601 619 Population - Estimates 32,596 32,796 32,996
Emergency Medical Responses 1,296 1,316 1,355 Monthly 5.67$ 5.84$ 6.62$
Fire Inspections / Plan Reviews 305 253 300 Annual 68.09$ 70.12$ 79.48$
Fire Investigations 13 15 23
Public Fire Education (hours)443 610 700
Customer Contacts 22,081 22,081 22,743
Total Firefighter Training Hours 5,105 6,700 7,100
Average Response Time 8.1 min 8.0 min 8.0 min
Number of Firefighters 44 54 60
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Fire Protection
Fire Chief
A D O P T E D 2 0 2 6 B U D G E T
The fire department responds to all fire, emergency medical, and other calls for service
throughout the City of Andover. Paid-on-call firefighters are alerted to incidents via a
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
and Standards. The fire department also provides public eduation and fire safety
information to residents. Additionally, the Fire Chief, who is also the Fire Marshal,
serves as the Emergency Management Director, overseeing all City disaster and
contingency plans.
Paid-on-call firefighters are professionally trained with each averaging over 160 hours
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
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
increased substantially over th past five years.
Budgeted 2025 includes an enhancement to the duty crew program. With the addition
of 2 full-time employees, week day hours will be covered by full-time firefighters with
paid-on-call firefighters covering evenings and weekends.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
70
Fund: 0101 - General Department:
Cost Center: 42300 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 3.46 3.65 4.28
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Process Used Personal Services 408,575$ 467,074$ 552,694$
Supplies & Materials 8,787 17,050 19,050
Other Services / Charges 26,374 27,510 33,142
Purchased Services 68,296 52,000 67,000 TOTAL 512,032$ 563,634$ 671,886$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Residential
New Construction 99 102 75
Other Permits 1,193 1,062 1,100
Commercial, Industrial, etc Actual Current Budgeted
New Construction 5 5 3 Expenditures Per Capita 2024 2025 2026
Other Permits 154 31 20 Population - Estimates 32,596 32,796 32,996
Trades & Misc Permits 3,290 2,894 3,000 Monthly 1.31$ 1.43$ 1.70$
Permits Initiated Online 59%64%65%Annual 15.71$ 17.19$ 20.36$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Protective Inspection
Building Official
A D O P T E D 2 0 2 6 B U D G E T
Review and process building permit applications, perform on-site inspections of residential
and commercial construction and ensure that all construction activity is in compliance with
State and City building and fire codes.
Building permit applications are reviewed, plan checks completed, and construction fees
collected. Upon issuance of a permit, the person doing the work calls in for inspections at
various states of construction. When construction is completed in accordance with
approved standards, a Certificate of Occupancy is issued.
Budgeted 2026 included staff restructuring, converting a half-time building inspector
position into full-time.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
71
Fund: 0101 - General Department:
Cost Center: 42400 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.05 0.05 0.05
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 7,581$ 8,115$ 8,795$
Process Used Supplies & Materials - 10,100 10,100
Other Services / Charges 10,775 11,544 11,600
Purchased Services 2,933 10,000 10,000 TOTAL 21,289$ 39,759$ 40,495$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
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 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.05$ 0.10$ 0.10$
Annual 0.65$ 1.21$ 1.23$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Emergency Management
Building Official
A D O P T E D 2 0 2 6 B U D G E T
Maintain City's emergency warning system. Repair, replace and maintain fourteen (14)
warning sirens throughout the city to ensure proper activation during storm, civil and
emergency conditions. All sirens are visualy checked every April to confirm sirens are
operating properly.
If a siren is found to be dysfunctional, a service call is placed, a repair-person comes out,
necessary repairs are completed. The 3 oldest sirens were constructed in 2017, the
remaining eleven are newer. Siren warning tests are performed monthly to verify activation
and educate citizens regarding the City's Emergency Warning System.
No major changes planned for Budgeted 2026. All sirens are relatively new.Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
72
Fund: 0101 - General Department:
Cost Center: 42500 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Process Used Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Supplies & Materials - 150 150
Other Services / Charges 250 200 750
Purchased Services 7,382 10,600 10,600
TOTAL 7,632$ 10,950$ 11,500$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of dogs licensed 206 179 190
Number of animals confined 34 40 20
Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimate 32,596 32,796 32,996
Monthly 0.02$ 0.03$ 0.03$
Annual 0.23$ 0.33$ 0.35$
C I T Y O F A N D O V E R , M I N N E S O T A
Animal Control
City Clerk
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
The enforcement of City Code Title 5 relating to dogs and cats.
Letters are sent to dog and cat owners who allow their animals to run at large warning
them that they are in violation of the City's ordinance. If the behavior continues, a ticket
is issued by the Sheriff's office to the owner citing them for a misdemeanor. The City
contracts with an independent contractor to provide animal control services. City staff
also issue licenses for dogs in the city.
No major changes planned for Budget 2026 except changing contractors.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
73
Fund: 0101 - General Department:
Cost Center: 43100 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 6.57 5.46 5.99
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Process Used Personal Services 717,323$ 682,802$ 806,550$
Supplies & Materials 99,572 101,095 103,095
Other Services / Charges 157,649 174,672 176,672
Purchased Services 32,800 107,800 97,800
Service Expenditure Highlights Capital Outlay - - -
TOTAL 1,007,344$ 1,066,369$ 1,184,117$
Actual Current Budgeted
Performance Measures 2024 2025 2026
Asphalt Streets Maintained (miles)207 208 209
Gravel Roads Maintained (miles)6.5 6.5 6.5
Cul-de-sacs & Deadends Maintained 358 362 364
Road Markings/Striping (intersections)196 202 203
Street Sweeping (miles)876 2360 2400
Gravel Usage (tons)1,124 0 1,200
Asphalt Usage (tons)648 575 550 Actual Current Budgeted
Pothole Patching (tons per day)5.30 5.04 5.00 Expenditures Per Capita 2024 2025 2026
Spray Patcher - Rock (tons)186 76 100 Population - Estimates 32,596 32,796 32,996
Spray Patcher - Oil (gallons)2,648 1,095 1,500 Monthly 2.58$ 2.71$ 2.99$
Annual 30.90$ 32.52$ 35.89$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Streets & Highways
Street Supervisor
A D O P T E D 2 0 2 6 B U D G E T
The Streets and Highways Department maintains all City streets to minimize
deterioration. Maintenance includes seal coating, crack sealing, pothole patching,
sweeping, gravel road maintenance and wash and seal bridges. Along with road
maintenance, this department is responsible for mowing ditches and trimming boulevard
trees.
Staff is assigned detailed work, followed by inspections. Equipment and personnel are
managed to accomplish maintenance activities.
Budget 2026 includes the reallocation of FTE's as the amount of time spent on snow
removal as lessened over the years.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
74
Fund: 0101 - General Department:
Cost Center: 43200 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 1.41 2.52 2.25
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 193,662$ 372,259$ 363,658$
Supplies & Materials 155,520 195,350 197,850
Process Used Other Services / Charges 352,449 357,144 364,664
Purchased Services - 1,000 1,000
TOTAL 701,631$ 925,753$ 927,172$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Miles of streets plowed 207 208 209
Cul-de-sacs 358 362 364
Sand/Salt Usage (tons)1,050 654 1,700 Actual Current Budgeted
Brine Usage (gal)6,400 7,000 10,000 Expenditures Per Capita 2024 2025 2026
Annual Snowfall (inches)30 29 60 Population - Estimates 32,596 32,796 32,996
Plowing a 1-2" Snow event (hrs)6 6 6 Monthly 1.79$ 2.35$ 2.34$
Plowing a 2-4" Snow event (hrs)7 7 7 Annual 21.53$ 28.23$ 28.10$
Plowing a 4" + Snow event (hrs)11 11 11
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Snow & Ice
Street Supervisor
A D O P T E D 2 0 2 6 B U D G E T
All Public Works Departments provide snow removal services for 205 miles of city streets
and 363 cul-de-sacs. The goal is to provide convenient, reasonably safe travel and to
prevent deterioration of the streets due to winter conditions.
Snowplows, equipped with underbody plows, and salt brine sanders are used to clear city
streets. The streets are cleared on a systematic basis as soon as practical after a
snowstorm per city policy.
Personal Services are allocated based on time spent removing snow and ice from roads,
trails, and/or parking lots. The decrease in Budgeted 2026 in Personal Services is due to
reduced amount of time staff is spending on snow removal. The cost of salt continues to
increase.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
75
Fund: 0101 - General Department:
Cost Center: 43300 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 1.33 1.26 1.24
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 154,661$ 160,752$ 171,518$
Supplies & Materials 46,301 47,860 47,860
Other Services / Charges 14,760 19,848 20,088
Process Used Purchased Services - 1,500 1,500
Capital Outlay - - -
TOTAL 215,722$ 229,960$ 240,966$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Damaged/Repair/Replace (# of signs)207 130 200
All Parks and Trail Signs 23 10 20
Traffic Counts (locations, every 4 yrs)25 14 25 Actual Current Budgeted
Sign Inventory / Verified (# of zones)1 2 1 Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.55$ 0.58$ 0.61$
Annual 6.62$ 7.01$ 7.30$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditure By Category
Street Signs
Street Supervisor
A D O P T E D 2 0 2 6 B U D G E T
Installs new signage and replaces/repairs existing signs. All signage for streets and
highways are in compliance with Federal, State, County and City guidelines. The ultimate
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. Sign
data such as location, type and quality of signs is being collected and data entry
completed on a sign database for sign inventory.
City staff / Engineers provide data regarding signage for new developments, update
existing signage and any other related sign changes. City staff, engineers, residents, local
sheriff, Public Works and the general public also provide notification for necessary repairs
for damaged signs.
Minimal changes to Budgeted 2026.Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
76
Fund: 0101 - General Department:
Cost Center: 43400 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Process Used Personal Services -$ -$ -$
Supplies & Materials - - -
Other Services / Charges 19,751 31,500 31,500
Purchased Services 24,615 12,500 12,500 TOTAL 44,366$ 44,000$ 44,000$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Traffic Signals:Actual Current Budgeted
Within the Community 20 20 20 Expenditures Per Capita 2024 2025 2026
Shared (Anoka or Coon Rapids)8 8 8 Population - Estimates 32,596 32,796 32,996
Wayside Horns 2 2 2 Monthly 0.11$ 0.11$ 0.11$
Annual 1.36$ 1.34$ 1.33$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Traffic Signals
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
Under the Anoka County Cost Share Policy, the City of Andover is responsible for 1) the
electrical cost of the overhead street lights at intersections and 2) the power of the traffic
signal and maintenance costs for some aspect of the signal. The City has wayside horns
at the railroad tracks at Andover Blvd NW and Crosstown Blvd NW.
Intersections are signalized at various locations within the community based on the Anoka
County cost share policy and the need of the community. Wayside horns have been
installed to reduce the train horn noise at the locations mentioned above.
Anoka County Highway Department maintains all the traffic signals and EVP systems on
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
inspection/service visit and a bi-annual complete overview of the system.Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
77
Fund: 0101 - General Department:
Cost Center: 43500 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Supplies & Materials - - -
Process Used Other Services / Charges 35,493 40,000 40,000
Purchased Services - 5,400 5,400
TOTAL 35,493$ 45,400$ 45,400$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026 Actual Current Budgeted
Number of Lights installed and Expenditures Per Capita 2024 2025 2026
maintained by private utility.328 345 350 Population - Estimates 32,596 32,796 32,996
Monthly 0.09$ 0.12$ 0.11$
Annual 1.09$ 1.38$ 1.38$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Street Lighting
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
Street lighting and safety lighting provides a safety measure for both pedestrians and the
motoring public.
Street lights are installed at critical intersections of county roads and city streets, in
addition to, other safety lighting needs.
As the City continues to develop, new street lights are added with new and existing
neighborhoods and at critical intersections within the City. Due to annual adjustments,
maintenance, replacement, and/or repair of lights by Connexus Energy, the expenditures
to service these lights have generally shown an upward trend in cost.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
78
Fund: 0101 - General Department:
Cost Center: 43600 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Supplies & Materials - - -
Other Services & Charges 119,430 145,000 145,000
Process Used Purchased Services 32,232 37,000 37,000
TOTAL 151,662$ 182,000$ 182,000$
Service Expenditure Highlights
Actual Current Budgeted Actual Current Budgeted
Performance Measures 2024 2025 2026 Expenditures Per Capita 2024 2025 2026
Number of Street Lights Billed 1,384 1,414 1,430 Population - Estimates 32,596 32,796 32,996
Monthly 0.39$ 0.46$ 0.46$
Annual 4.65$ 5.55$ 5.52$
C I T Y O F A N D O V E R , M I N N E S O T A
Street Lights Billed
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
The street lights that are internal to a residential development are funded by that
development or neighborhood. Both the operation and maintenance costs of the lights are
billed to the neighborhood property owners.
Connexus Energy operates, maintains and bills the residents for their street lights. Street
lights are only billed to neighborhoods that have the lights.
Due to annual adjustments, maintenance, replacement and/or repair of lights by
Connexus Energy, the expenditures to service these lights have generally shown an
upward trend in cost. The billing services contract continues to increase as well.
Personal Services
Supplies & Materials
Other Services & Charges
Purchased Services
79
Fund: 0101 - General Department:
Cost Center: 45000 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2024 2026
FTE Equivalents 8.43 7.95 7.68
Actual Current Budgeted
Service Expenditures 2024 2024 2026
Personal Services 984,482$ 1,006,788$ 1,064,284$
Supplies & Materials 112,039 121,100 121,600
Process Used Other Services / Charges 377,653 396,660 408,104
Purchased Services 86,605 93,500 98,500
Capital Outlay 245,516 257,652 235,000
TOTAL 1,806,295$ 1,875,700$ 1,927,488$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2024 2026
Number of City Parks maintained 53 54 55
Total acreage mowed 340 341 341
Ballfields maintained 27 27 27
Number of playgrounds 43 44 44 Actual Current Budgeted
Total soccer fields maintained 20 20 20 Expenditures Per Capita 2024 2024 2026
Miles of trail maintained 41 41.5 43 Population - Estimates 32,596 32,796 32,996
Ice Rinks / Warming Houses 11 / 4 11 / 4 11 / 4 Monthly 4.62$ 4.77$ 4.87$
Annual 55.41$ 57.19$ 58.42$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Parks & Recreation
Parks Maintenance Supervisor
A D O P T E D 2 0 2 6 B U D G E T
The Parks Department maintains the entire City park and trail system. Most of the
upgrades and additional developments of the parks are also done by the parks staff.
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
fabrication, lighting and electrical, trail sign installs, and all turf and seed upkeep.
The top priority for the Parks Department is to provide a safe product or facility for all the
public to use. Provide diverse activities for all groups and associations through the use
of city parks and/ trail system.
Budgeted 2026 includes any employee changes in health insurance, a COLA adjustment
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
associated with parks equipment - mowers, trail machines, trucks and snow removal
equipment.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
80
Fund: 0101 - General Department:
Cost Center: 45500 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Supplies & Materials 525 2,500 2,500
Other Services / Charges - - -
Purchased Services 11,318 12,500 12,500
TOTAL 11,843$ 15,000$ 15,000$
Process Used
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of City nature preserves 4 4 4
Number of City Parks undeveloped 6 6 6
Total acreage managed 120 150 150
Ash trees treated 100 20 20 Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.03$ 0.04$ 0.04$
Annual 0.36$ 0.46$ 0.45$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Natural Resource Preservation
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
The City has several nature preserves and natural parks that benefit from various forms
of vegetation management. Activities include but not limited to prescribed burns,
mowing, 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 long-term sustainability and help provide a natural environment for residents to
enjoy. Also, the City has an EAB (emerald ash borer) Management Program to
chemically treat trees on public and private properties. Finally, the City has committed
matching funds for various grants to purchase trees to be planted throughout the City.
Staff will review the applicable properties on an annual basis and prioritize them for
management based on the needs.
No major changes planned for Budgeted 2026.Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
81
Fund: 0101 - General Department:
Cost Center: 46000 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.90 0.85 0.92
Process Used Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 90,114$ 92,787$ 101,293$
Supplies & Materials 1,414 7,875 7,875
Other Services / Charges 12,127 19,068 19,196
Purchased Services 87,333 130,500 130,500
TOTAL 190,988$ 250,230$ 258,864$
Service Expenditure Highlights
Service Expenditures By Category
Actual Current Budgeted
Performance Measures 2024 2025 2026
Schools with recycling bins 7 7 7
Recycling Days 12 11 11
Recycling collection tonnage 4,383 3,544 4,000
Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.49$ 0.64$ 0.65$
Annual 5.86$ 7.63$ 7.85$
C I T Y O F A N D O V E R , M I N N E S O T A
Recycling
Recycling Coordinator
A D O P T E D 2 0 2 6 B U D G E T
The Recycling Department provides recycling opportunities to all city residents. The goal
is to provide this service in a cost effective manner.
Refuse and recycling services are provided curbside by licensed haulers in an open
hauling system. A drop off recycling site is provided by the City. Recycling bins are also
available through the City. New recycling materials are offered as soon as they become
feasible. The program also provides special educational opportunities for Andover schools
and senior apartment complexes to promote waste reduction and recycling.
A small increase is planned for Budgeted 2026 as recycling disposal fees continue to
increase. Organics recycling was added in 2025 which added additional expenses.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
82
Fund: 0101 - General Department:Unallocated
Cost Center: 49100 Director/Manager:Finance Director
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents N/A N/A N/A
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services -$ -$ -$
Process Used Supplies & Materials - - -
Other Services / Charges 4,303 96,600 96,600
Purchased Services - - -
Other Uses 93,700 1,000,000 -
TOTAL 98,003$ 1,096,600$ 96,600$
Service Expenditure Highlights
Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 0.25$ 2.79$ 0.24$
Annual 3.01$ 33.44$ 2.93$
C I T Y O F A N D O V E R , M I N N E S O T A
A D O P T E D 2 0 2 6 B U D G E T
Service Expenditures By Category
Unallocated contains funding for the unexpected and miscellaneous items not directly
chargeable to a specific activity.
Annually the City reviews the miscellaneous activities funding levels and based on
past experiences does budget a contingency amount for unexpected expenditures.
Actual 2024 includes a transfer to Capital Equipment Reserve Capital Projects Fund
for storm related expenditures. Current 2025 includes the transfer to the EDA
Special Revenue Fund ($250,000) for a funding a shortfall, and the Capital
Equipment Reserve Capital Projects Fund for the Kelsey Round Lake Trail matching
grant ($250,000), the replacement of an additional plow truck ($350,000) and the
increase in the natural disaster reserve ($150,000).
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Other Uses
83
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CITY OF ANDOVER, MINNESOTA
2026 ANNUAL BUDGET
SPECIAL REVENUE FUNDS
DEFINITION:
Special revenue funds are established to justify revenue sources to finance particular functions or projects.
Revenue for these funds can come from a variety of sources, such as taxes, fees, gifts and grants or contributions
from other governmental entities. Expenditures from these funds are normally restricted by statute, local ordinance,
or grant agreements. The funds may be used for either operations or capital outlay as legal restrictions mandate.
85
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86
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 2,316,284$ 2,904,892$ 2,904,892$ 2,414,476$
Revenues
General Property Taxes 193,273 195,000 195,000 195,000
Intergovernmental 1,276,486 112,500 255,000 267,500
Charges for Services 1,584,518 1,326,000 1,435,800 1,395,000
Investment Income 156,929 14,250 57,829 25,500
Miscellaneous 1,057,922 869,968 919,000 889,068
Total Revenues:4,269,128 2,517,718 2,862,629 2,772,068
Other Sources
Transfers In - - 250,000 -
Total Revenues and Other Sources:4,269,128 2,517,718 3,112,629 2,772,068
Total Available:6,585,412 5,422,610 6,017,521 5,186,544
Expenditures
Personal Services 969,275 992,122 992,122 1,064,605
Supplies and Materials 126,948 124,420 137,510 127,620
Purchased Services 662,631 362,842 351,379 458,705
Other Services and Charges 634,820 836,684 802,684 989,450
Capital Outlay 978,846 1,008,000 1,009,250 -
Total Expenditures:3,372,520 3,324,068 3,292,945 2,640,380
Other Uses
Transfers Out 308,000 310,100 310,100 308,110
Total Expenditures and Other Uses:3,680,520 3,634,168 3,603,045 2,948,490
Fund Balance, December 31 2,904,892$ 1,788,442$ 2,414,476$ 2,238,054$
Change in Fund Balance 588,608$ (1,116,450)$ (490,416)$ (176,422)$
25%-38%-17%-7%
Description
City of Andover
Special Revenue Funds
2026 Budget Summary - All Special Revenue Funds
Statement of Revenues, Expenditures and Changes in Fund Balance
87
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 168,503$ 137,575$ 137,575$ 300,339$
Revenues
Charges for Services 24,096 15,000 15,000 10,000
Investment Income 6,690 2,000 2,000 2,000
Miscellaneous 695 - - -
Total Revenues:31,481 17,000 17,000 12,000
Other Sources
Transfers In - - 250,000 -
Total Revenues and Other Sources:31,481 17,000 267,000 12,000
Total Available:199,984 154,575 404,575 312,339
Expenditures
Personal Services 2,991 7,536 7,536 7,536
Supplies and Materials 4,304 16,400 8,900 6,700
Purchased Services 47,110 71,730 77,500 79,800
Other Services and Charges 8,004 13,100 10,300 9,250
Total Expenditures:62,409 108,766 104,236 103,286
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:62,409 108,766 104,236 103,286
Fund Balance, December 31 137,575$ 45,809$ 300,339$ 209,053$
Change in Fund Balance (30,928)$ (91,766)$ 162,764$ (91,286)$
-18%-67%118%-30%
Description
City of Andover
Special Revenue Funds
Economic Development Authority Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
88
Fund: Economic Development Authority
Activity Type/Code:Special Revenue Department Head:
Expenditure Highlights General Activity Description
2026 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.
2025 continues the Home Improvement Program to assist in exterior Process Used
home improvements within the City ($25,000).
Promotion and expansion of the commercial and industrial tax base
through the development and redevelopment of land.
EDA Budget provides for ongoing maintenance around the Andover Station
Development area.The EDA is the primary authority involved in managing the City's four
Tax Increment Financing (TIF) Districts. The EDA monitors and initiates
the activities within the TIF Districts to reach the goals of the TIF plans.
C I T Y O F A N D O V E R , M I N N E S O T A
City Administrator
A D O P T E D 2 0 2 6 B U D G E T
89
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 -$ 99,340$ 99,340$ 255,740$
Revenues
Intergovernmental 98,152 100,000 255,000 255,000
Investment Income 1,188 - 1,400 -
Total Revenues:99,340 100,000 256,400 255,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:99,340 100,000 256,400 255,000
Total Available:99,340 199,340 355,740 510,740
Expenditures
Other Services and Charges - 100,000 100,000 255,000
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:- 100,000 100,000 255,000
Fund Balance, December 31 99,340$ 99,340$ 255,740$ 255,740$
Change in Fund Balance 99,340$ -$ 156,400$ -$
n/a 0%157%0%
Description
City of Andover
Special Revenue Funds
Local Affordable Housing Aid
Statement of Revenues, Expenditures and Changes in Fund Balance
90
Fund: Local Affordable Housing Aid
Activity Type/Code:Special Revenue Department Head:
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 in the affordable housing within their jurisdictions to keep families from losing
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
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.
A D O P T E D 2 0 2 6 B U D G E T
C I T Y O F A N D O V E R , M I N N E S O T A
Community Development Dir.
- Projects designed for the purpose of construction, acquisition, rehabilitatioin,
91
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 1,379,580$ 1,874,018$ 1,874,018$ 1,038,123$
Revenues
General Property Taxes 153,742 155,000 155,000 155,000
Charges for Services 1,491,637 1,256,000 1,359,000 1,328,000
Investment Income 83,017 5,000 40,000 10,000
Miscellaneous 928,520 826,068 834,000 839,068
Total Revenues:2,656,916 2,242,068 2,388,000 2,332,068
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:2,656,916 2,242,068 2,388,000 2,332,068
Total Available:4,036,496 4,116,086 4,262,018 3,370,191
Expenditures
Personal Services 921,944 939,461 939,461 1,006,850
Supplies and Materials 119,343 103,600 125,500 116,500
Purchased Services 176,798 189,400 180,400 268,400
Other Services and Charges 609,370 700,734 670,534 702,150
Capital Outlay 35,023 1,008,000 1,008,000 -
Total Expenditures:1,862,478 2,941,195 2,923,895 2,093,900
Other Uses
Transfers Out 300,000 300,000 300,000 300,000
Total Expenditures and Other Uses:2,162,478 3,241,195 3,223,895 2,393,900
Fund Balance, December 31 1,874,018$ 874,891$ 1,038,123$ 976,291$
Change in Fund Balance 494,438$ (999,127)$ (835,895)$ (61,832)$
36%-53%-45%-6%
Description
City of Andover
Special Revenue Funds
Community Center Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
92
Fund: Community Center
Activity Type/Code:Special Revenue Department Head:
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 concessions.
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 2026. 2025 included the addition of a golf
simulator put in one of the under-utilized meeting rooms and the reroofing of
the ice arena and field house ($1,000,000).Process Used
The Community Center construction started in 2004 and was completed
in the summer of 2005. The facility will be managed by the Recreational
Facility Manager with oversight by a Community Center Advisory Board
and the City Council. The YMCA is a long-term tenant and started making
lease payments in 2008.
In 2020, an expansion of the Community Center was completed. It includes a
multi-sports complex, an additional court added to the field house, senior/teen
space, and additional parking.
A D O P T E D 2 0 2 6 B U D G E T
C I T Y O F A N D O V E R , M I N N E S O T A
Recreation Facility Manager
93
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 197,827$ 203,734$ 203,734$ 196,637$
Revenues
Charges for Services 12,848 10,000 16,800 10,000
Investment Income 9,615 1,500 3,500 3,000
Total Revenues:22,463 11,500 20,300 13,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:22,463 11,500 20,300 13,000
Total Available:220,290 215,234 224,034 209,637
Expenditures
Personal Services 8,649 9,097 9,097 10,670
Supplies and Materials 182 3,000 2,660 3,000
Purchased Services 2,707 6,000 6,000 6,000
Other Services and Charges 5,018 9,800 8,800 8,000
Capital Outlay - - 840 -
Total Expenditures:16,556 27,897 27,397 27,670
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:16,556 27,897 27,397 27,670
Fund Balance, December 31 203,734$ 187,337$ 196,637$ 181,967$
Change in Fund Balance 5,907$ (16,397)$ (7,097)$ (14,670)$
3%-8%-3%-7%
Description
City of Andover
Special Revenue Funds
Drainage and Mapping Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
94
Fund: Drainage and Mapping
Activity Type/Code:Special Revenue Department Head:
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 electronically
through the City's GIS mapping system. All data is accessible through
that City's mapping system.
C I T Y O F A N D O V E R , M I N N E S O T A
Dir of PW / City Engineer
A D O P T E D 2 0 2 6 B U D G E T
95
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 102,403$ 106,392$ 106,392$ 106,616$
Revenues
General Property Taxes 39,531 40,000 40,000 40,000
Investment Income 4,349 750 2,000 1,500
Total Revenues:43,880 40,750 42,000 41,500
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:43,880 40,750 42,000 41,500
Total Available:146,283 147,142 148,392 148,116
Expenditures
Personal Services 10,628 11,147 11,147 12,051
Supplies and Materials - 520 100 520
Purchased Services 29,201 30,412 29,979 29,205
Other Services and Charges 62 550 550 550
Total Expenditures:39,891 42,629 41,776 42,326
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:39,891 42,629 41,776 42,326
Fund Balance, December 31 106,392$ 104,513$ 106,616$ 105,790$
Change in Fund Balance 3,989$ (1,879)$ 224$ (826)$
4%-2%0%-1%
Description
City of Andover
Special Revenue Funds
Lower Rum River Watershed Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
96
Fund: Lower Rum River Watershed Management Organization
Activity Type/Code:Special Revenue Department Head:
Expenditure Highlights 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.
organizations several powers, among which are:
projects directly affecting the water resources of the watershed.
surface water management plan.
5. Collection of data.
the initiative of the LRRWMO.
mentioned activities and for general administration of the organization.
7. Construction of improvements, either in response to petition or on
8. Levying of taxes and assessments for the financing of the previously
C I T Y O F A N D O V E R , M I N N E S O T A
Assistant City Engineer
A D O P T E D 2 0 2 6 B U D G E T
To achieve this purpose, state law gives watershed management
1. Responsibility for preserving natural retention areas.
2. Preparation of plans for water management.
3. Review of municipal water management plans and permits of
4. Review of local land use in the absence of an approved municipal
6. Conducting of studies and investigations.
9. Educating the public on water resource issues.
97
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 2,994$ 3,672$ 3,672$ 3,601$
Revenues
Intergovernmental 9,868 12,500 - 12,500
Investment Income (30) - (71) -
Total Revenues:9,838 12,500 (71) 12,500
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:9,838 12,500 (71) 12,500
Total Available:12,832 16,172 3,601 16,101
Expenditures
Supplies and Materials 3,113 - - -
Purchased Services 6,047 12,500 - 12,500
Total Expenditures:9,160 12,500 - 12,500
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:9,160 12,500 - 12,500
Fund Balance, December 31 3,672$ 3,672$ 3,601$ 3,601$
Change in Fund Balance 678$ -$ (71)$ -$
23%0%-2%0%
Description
City of Andover
Special Revenue Funds
Forestry Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
98
Fund: Forestry
Activity Type/Code:Special Revenue Department Head:
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 Arbor
Day event giveaway, coordinate various tree plantings with local organizations
like the Eagle Scouts, and monitor preservation and disease tree management
grants.
C I T Y O F A N D O V E R , M I N N E S O T A
Dir of PW / City Engineer
A D O P T E D 2 0 2 6 B U D G E T
99
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 139,969$ 154,570$ 154,570$ 145,829$
Revenues
Charges for Services 44,067 35,000 35,000 35,000
Investment Income 6,937 1,000 2,000 2,000
Total Revenues:51,004 36,000 37,000 37,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:51,004 36,000 37,000 37,000
Total Available:190,973 190,570 191,570 182,829
Expenditures
Personal Services 25,063 24,881 24,881 27,498
Supplies and Materials 6 900 350 900
Purchased Services 2,838 8,900 7,500 8,900
Other Services and Charges 496 2,500 2,500 2,500
Capital Outlay - - 410 -
Total Expenditures:28,403 37,181 35,641 39,798
Other Uses
Transfers Out 8,000 10,100 10,100 8,110
Total Expenditures and Other Uses:36,403 47,281 45,741 47,908
Fund Balance, December 31 154,570$ 143,289$ 145,829$ 134,921$
Change in Fund Balance 14,601$ (11,281)$ (8,741)$ (10,908)$
10%-7%-6%-7%
Description
City of Andover
Special Revenue Funds
Right of Way Management / Utility Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
100
Fund: Right of Way Management/Utility
Activity Type/Code:Special Revenue Department Head:
Expenditure Highlights General Activity Description
The transfer to the Road & Bridge Capital Projects is for the degredation
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
include requiring the following:
damages to the right-of-way.
C I T Y O F A N D O V E R , M I N N E S O T A
Dir of PW / City Engineer
A D O P T E D 2 0 2 6 B U D G E T
The function of Right-of-Way Management is to provide for:
To achieve this purpose, state law gives the City several powers to
1. Require permits for work within the right-of-way.
2. Collect fees to recover costs associated with the permit including
101
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 275,268$ 316,909$ 316,909$ 356,909$
Revenues
Investment Income 14,714 2,500 5,000 5,000
Miscellaneous 128,707 43,900 85,000 50,000
Total Revenues:143,421 46,400 90,000 55,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:143,421 46,400 90,000 55,000
Total Available:418,689 363,309 406,909 411,909
Expenditures
Purchased Services 101,780 43,900 50,000 53,900
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:101,780 43,900 50,000 53,900
Fund Balance, December 31 316,909$ 319,409$ 356,909$ 358,009$
Change in Fund Balance 41,641$ 2,500$ 40,000$ 1,100$
15%1%13%0%
Description
City of Andover
Special Revenue Funds
Charitable Gambling Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
102
Fund: Charitable Gambling
Activity Type/Code:Special Revenue Department Head:
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, Hope 4
Youth, 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. It can also include playground equipment within a city park or
for construction or maintenance of a veterans memorial within a city park.
A D O P T E D 2 0 2 6 B U D G E T
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
103
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 1,802$ 8,682$ 8,682$ 10,682$
Revenues
Charges for Services 11,870 10,000 10,000 12,000
Investment Income 6,880 1,500 2,000 2,000
Total Revenues:18,750 11,500 12,000 14,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:18,750 11,500 12,000 14,000
Total Available:20,552 20,182 20,682 24,682
Expenditures
Other Services and Charges 11,870 10,000 10,000 12,000
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:11,870 10,000 10,000 12,000
Fund Balance, December 31 8,682$ 10,182$ 10,682$ 12,682$
Change in Fund Balance 6,880$ 1,500$ 2,000$ 2,000$
382%17%23%19%
Description
City of Andover
Special Revenue Funds
Crack Seal & Pavement Seal Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
104
Fund: Crack Seal & Pavement Seal
Activity Type/Code:Special Revenue Department Head:
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.
C I T Y O F A N D O V E R , M I N N E S O T A
Dir of PW / City Engineer
A D O P T E D 2 0 2 6 B U D G E T
105
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 47,938$ -$ -$ -$
Revenues
Intergovernmental 1,168,466 - - -
Investment Income 23,569 - - -
Total Revenues:1,192,035 - - -
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:1,192,035 - - -
Total Available:1,239,973 - - -
Expenditures
Purchased Services 296,150 - - -
Capital Outlay 943,823 - - -
Total Expenditures:1,239,973 - - -
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:1,239,973 - - -
Fund Balance, December 31 -$ -$ -$ -$
Change in Fund Balance (47,938)$ -$ -$ -$
-100%n/a n/a n/a
City of Andover
Special Revenue Funds
CARES Act / ARPA Funding
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
106
Fund: CARES Act / ARPA Funding
Activity Type/Code:Special Revenue Department Head:
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 $3.6 million in two
distributions - July 2021 and July 2022.
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
107
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108
CITY OF ANDOVER, MINNESOTA
2026 ANNUAL BUDGET
DEBT SERVICE FUNDS
DEFINITION:
A debt service fund accounts for the accumulation of resources for, and the payment of general long-term principal
and interest. Repayment of the debt through principal and interest payments to bond holders is backed by the full
faith and credit of the government unit.
109
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110
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 3,819,273$ 3,700,922$ 3,700,922$ 5,161,805$
Revenues
General Property Taxes 3,874,800 4,881,034 4,881,034 4,905,158
Investment Income 88,924 - 20,500 23,000
Total Revenues:3,963,724 4,881,034 4,901,534 4,928,158
Other Sources
Operating Transfers In 845,300 854,407 854,407 645,300
Total Revenues and Other Sources:4,809,024 5,735,441 5,755,941 5,573,458
Total Available:8,628,297 9,436,363 9,456,863 10,735,263
Expenditures
Debt Service
Principal 3,240,000 2,980,000 2,980,000 4,005,000
Interest 1,162,366 1,231,862 1,306,658 1,358,466
Other 15,250 8,400 8,400 8,400
Total Expenditures:4,417,616 4,220,262 4,295,058 5,371,866
Other Uses
Operating Transfers Out 509,759 - - 32,619
Total Expenditures and Other Uses:4,927,375 4,220,262 4,295,058 5,404,485
Fund Balance, December 31 3,700,922$ 5,216,101$ 5,161,805$ 5,330,778$
Change in Fund Balance (118,351)$ 1,515,179$ 1,460,883$ 168,973$
-3%41%39%3%
Description
City of Andover
Debt Service Funds
2026 Budget Summary - All Debt Service Funds
Statement of Revenues, Expenditures and Changes in Fund Balance
111
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 421,659$ -$ -$ -$
Revenues
General Property Taxes - - - -
Investment Income - - - -
Total Revenues:- - - -
Other Sources
Operating Transfers In - - - -
Total Revenues and Other Sources:- - - -
Total Available:421,659 - - -
Expenditures
Debt Service
Principal 345,000 - - -
Interest 6,900 - - -
Other 4,000 - - -
Total Expenditures:355,900 - - -
Other Uses
Operating Transfers Out 65,759 - - -
Total Expenditures and Other Uses:421,659 - - -
Fund Balance, December 31 -$ -$ -$ -$
Change in Fund Balance (421,659)$ -$ -$ -$
-100%n/a n/a n/a
Description
City of Andover
Debt Service Funds
Certificates/Capital Notes - 2020A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance
112
Fund: 3214
Cost Center: 2020A G.O. Equipment Certificates Department Head:
Activity Type/Code:Debt Service
General Activity Description
To account for the payment of principal and interest on long-term debt.
Process Used
The City issued $1,310,000 of Capital Notes in 2020 to facilitate the
purchase of equipment.
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
Final payment made in 2024.
113
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 174,728$ 189,354$ 189,354$ 200,469$
Revenues
General Property Taxes 174,066 176,715 176,715 -
Investment Income 3,860 - 500 -
Total Revenues:177,926 176,715 177,215 -
Other Sources
Operating Transfers In - - - -
Total Revenues and Other Sources:177,926 176,715 177,215 -
Total Available:352,654 366,069 366,569 200,469
Expenditures
Debt Service
Principal 155,000 160,000 160,000 165,000
Interest 8,050 4,900 4,900 1,650
Other 250 1,200 1,200 1,200
Total Expenditures:163,300 166,100 166,100 167,850
Other Uses
Operating Transfers Out - - - 32,619
Total Expenditures and Other Uses:163,300 166,100 166,100 200,469
Fund Balance, December 31 189,354$ 199,969$ 200,469$ -$
Change in Fund Balance 14,626$ 10,615$ 11,115$ (200,469)$
8%6%6%-100%
City of Andover
Debt Service Funds
Certificates/Capital Notes - 2021A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
114
Fund: 3215
Cost Center: 2021A G.O. Equipment Certificates Department Head:
Activity Type/Code: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
2026 166,650 165,000 1,650
Process Used
The City issued $630,000 of Capital Notes in 2021 to facilitate the
purchase of equipment.
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
115
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 -$ 10,145$ 10,145$ 425,097$
Revenues
General Property Taxes 448,043 450,000 450,000 444,834
Investment Income 6,102 - - -
Total Revenues:454,145 450,000 450,000 444,834
Other Sources
Operating Transfers In - - - -
Total Revenues and Other Sources:454,145 450,000 450,000 444,834
Total Available:454,145 460,145 460,145 869,931
Expenditures
Debt Service
Principal - - - 365,000
Interest - 20,748 33,848 48,625
Other - 1,200 1,200 1,200
Total Expenditures:- 21,948 35,048 414,825
Other Uses
Operating Transfers Out 444,000 - - -
Total Expenditures and Other Uses:444,000 21,948 35,048 414,825
Fund Balance, December 31 10,145$ 438,197$ 425,097$ 455,106$
Change in Fund Balance 10,145$ 428,052$ 414,952$ 30,009$
n/a 4219%4090%7%
City of Andover
Debt Service Funds
Certificates/Capital Notes - 2024A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
116
Fund: 3216
Cost Center: 2024A G.O. Equipment Certificates Department Head:
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
2026 413,625$ 365,000$ 48,625$
2027 414,875 385,000 29,875 Process Used
2028 415,125 405,000 10,125
The City is planning to issue $1,155,000 of Capital Notes in 2024 to facilitate
1,243,625$ 1,155,000$ 88,625$ the purchase of equipment.
Due to the timing of issuance, the 2024 levy amount of $444,000 was transferred
into the 2024A GO Equipment Certificate Capital Projects Fund and the amount
issued was reduced.
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
117
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 587,067$ 636,391$ 636,391$ 682,867$
Revenues
General Property Taxes 610,131 617,257 617,257 615,419
Investment Income 14,724 - 4,000 5,000
Total Revenues:624,855 617,257 621,257 620,419
Other Sources
Operating Transfers In 45,300 45,300 45,300 45,300
Total Revenues and Other Sources:670,155 662,557 666,557 665,719
Total Available:1,257,222 1,298,948 1,302,948 1,348,586
Expenditures
Debt Service
Principal 300,000 315,000 315,000 335,000
Interest 319,256 303,881 303,881 287,631
Other 1,575 1,200 1,200 1,200
Total Expenditures:620,831 620,081 620,081 623,831
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:620,831 620,081 620,081 623,831
Fund Balance, December 31 636,391$ 678,867$ 682,867$ 724,755$
Change in Fund Balance 49,324$ 42,476$ 46,476$ 41,888$
8%7%7%6%
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
Description
118
Fund: 3304
Cost Center: 2018A G.O. Capital Improvement Plan Bonds Department Head:
Activity Type/Code:Debt Service
General Activity Description
Year Amount Principal Interest To account for the payment of principal and interest on long-term debt.
2026 622,631$ 335,000$ 287,631$
2027 620,506 350,000 270,506
2028 626,206 370,000 256,206 Process Used
2029 624,956 380,000 244,956
2030 623,406 390,000 233,406 The City issued $10,000,000 of Capital Improvement Plan bonds in 2018
2031 621,556 400,000 221,556 to facilitate the construction of additional public works facilities.
2032 624,331 415,000 209,331
2033 621,731 425,000 196,731
2034 623,756 440,000 183,756
2035 620,125 450,000 170,125
2036 620,538 465,000 155,538
2037 620,182 480,000 140,182
2038 619,338 495,000 124,338
2039 622,603 515,000 107,603
2040 619,969 530,000 89,969
2041 621,400 550,000 71,400
2042 621,800 570,000 51,800
2043 616,588 585,000 31,588
2044 620,675 610,000 10,675
11,812,297$ 8,755,000$ 3,057,297$
The Water and Sanitary Sewer Enterprise Funds will be paying a portion of the
annual debt for the new public works facilities.
C I T Y O F A N D O V E R , M I N N E S O T A
A D O P T E D 2 0 2 6 B U D G E T
Finance Director
Debt Service is scheduled as listed below:
119
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 539,948$ 596,481$ 596,481$ 655,749$
Revenues
General Property Taxes 969,419 969,824 969,824 968,689
Investment Income 1,689 - - -
Total Revenues:971,108 969,824 969,824 968,689
Other Sources
Operating Transfers In 300,000 300,000 300,000 300,000
Total Revenues and Other Sources:1,271,108 1,269,824 1,269,824 1,268,689
Total Available:1,811,056 1,866,305 1,866,305 1,924,438
Expenditures
Debt Service
Principal 985,000 1,005,000 1,005,000 1,030,000
Interest 228,000 204,356 204,356 178,275
Other 1,575 1,200 1,200 1,200
Total Expenditures:1,214,575 1,210,556 1,210,556 1,209,475
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:1,214,575 1,210,556 1,210,556 1,209,475
Fund Balance, December 31 596,481$ 655,749$ 655,749$ 714,963$
Change in Fund Balance 56,533$ 59,268$ 59,268$ 59,214$
10%10%10%9%
City of Andover
Debt Service Funds
General Obligation Bonds - 2012C G.O. Taxable Abatement Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
120
Fund: 3405
Cost Center: 2012C G.O. Abatement Bonds Department Head:
Activity Type/Code:Debt Service
General Activity Description
To account for the payment of principal and interest on long-term debt.
Year Amount Principal Interest
2026 1,208,275$ 1,030,000$ 178,275$
2027 1,205,250 1,055,000 150,250 Process Used
2028 1,205,147 1,085,000 120,147
2029 1,212,675 1,125,000 87,675 The City sold $19,580,000 of Lease Revenue Bonds in 2004 to finance
2030 1,213,400 1,160,000 53,400 the construction of a community center. Approximately 50% of the debt
2031 1,218,000 1,200,000 18,000 will be paid for by a long-term lease arrangement with the YMCA of
Minneapolis. The YMCA will run a full service YMCA out of the Community
7,262,747$ 6,655,000$ 607,747$ Center building. This issue will be used to advance refund the refunding
issues sold in 2006 and 2007 that refunded the 2004 issue.
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
Debt Service is scheduled as listed below:
A D O P T E D 2 0 2 6 B U D G E T
121
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 1,086,781$ 1,176,531$ 1,176,531$ 1,253,638$
Revenues
General Property Taxes 1,024,314 1,018,100 1,018,100 1,179,308
Investment Income 29,661 - 8,000 9,000
Total Revenues:1,053,975 1,018,100 1,026,100 1,188,308
Other Sources
Operating Transfers In 150,000 159,107 159,107 -
Total Revenues and Other Sources:1,203,975 1,177,207 1,185,207 1,188,308
Total Available:2,290,756 2,353,738 2,361,738 2,441,946
Expenditures
Debt Service
Principal 600,000 630,000 630,000 660,000
Interest 507,650 476,900 476,900 444,650
Other 6,575 1,200 1,200 1,200
Total Expenditures:1,114,225 1,108,100 1,108,100 1,105,850
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:1,114,225 1,108,100 1,108,100 1,105,850
Fund Balance, December 31 1,176,531$ 1,245,638$ 1,253,638$ 1,336,096$
Change in Fund Balance 89,750$ 69,107$ 77,107$ 82,458$
8%6%7%7%
City of Andover
Debt Service Funds
General Obligation Bonds - 2019A G.O. Taxable Abatement Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
122
Fund: 3406
Cost Center: 2019A G.O. Taxable Abatement Bonds Department Head:
Activity Type/Code:Debt Service
General Activity Description
To account for the payment of principal and interest on long-term debt.
Year Amount Principal Interest
2026 1,104,650$ 660,000$ 444,650$
2027 1,105,775 695,000 410,775 Process Used
2028 1,100,275 725,000 375,275
2029 1,106,850 765,000 341,850 The City sold $15,770,000 of Taxable Abatement Bonds in 2019 to finance
2030 1,105,650 795,000 310,650 the expansion of the community center.
2031 1,103,250 825,000 278,250
2032 1,108,850 860,000 248,850
2033 1,107,675 885,000 222,675
2034 1,105,750 910,000 195,750
2035 1,108,000 940,000 168,000
2036 1,104,425 965,000 139,425
2037 1,105,025 995,000 110,025
2038 1,104,725 1,025,000 79,725
2039 1,103,525 1,055,000 48,525
2040 1,106,350 1,090,000 16,350
16,580,775$ 13,190,000$ 3,390,775$
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$
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
Debt Service is scheduled as listed below:
A D O P T E D 2 0 2 6 B U D G E T
123
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 1,009,090$ 1,092,020$ 1,092,020$ 1,152,698$
Revenues
General Property Taxes 648,827 649,138 649,138 701,553
Investment Income 32,888 - 8,000 9,000
Total Revenues:681,715 649,138 657,138 710,553
Other Sources
Operating Transfers In 350,000 350,000 350,000 300,000
Total Revenues and Other Sources:1,031,715 999,138 1,007,138 1,010,553
Total Available:2,040,805 2,091,158 2,099,158 2,163,251
Expenditures
Principal 855,000 870,000 870,000 885,000
Interest 92,510 75,260 75,260 57,710
Other 1,275 1,200 1,200 1,200
Total Expenditures:948,785 946,460 946,460 943,910
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:948,785 946,460 946,460 943,910
Fund Balance, December 31 1,092,020$ 1,144,698$ 1,152,698$ 1,219,341$
Change in Fund Balance 82,930$ 52,678$ 60,678$ 66,643$
8%5%6%6%
City of Andover
Debt Service Funds
General Obligation Bonds - 2021A G.O. Street Reconstruction
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
124
Fund: 3703
Cost Center: 2021A G.O. Street Reconstruction Department Head:
Activity Type/Code: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
2026 942,710$ 885,000$ 57,710$
2027 944,810 905,000 39,810 Process Used
2028 951,135 925,000 26,135
2029 946,395 930,000 16,395 The City issued $7,135,000 of Street Reconstruction Bonds in 2021 to
2030 945,640 940,000 5,640 facilitate the reconstruction of streets.
4,730,690$ 4,585,000$ 145,690$
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
125
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 -$ -$ -$ 791,287$
Revenues
General Property Taxes - 1,000,000 1,000,000 995,355
Other Sources
Operating Transfers In - - - -
Total Revenues and Other Sources:- 1,000,000 1,000,000 995,355
Total Available:- 1,000,000 1,000,000 1,786,642
Expenditures
Debt Service
Principal - - - 565,000
Interest - 145,817 207,513 339,925
Other - 1,200 1,200 1,200
Total Expenditures:- 147,017 208,713 906,125
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:- 147,017 208,713 906,125
Fund Balance, December 31 -$ 852,983$ 791,287$ 880,517$
Change in Fund Balance -$ 852,983$ 791,287$ 89,230$
n/a n/a n/a 11%
Description
City of Andover
Debt Service Funds
General Obligation Bonds - 2024A G.O. Street Reconstruction
Statement of Revenues, Expenditures and Changes in Fund Balance
126
Fund: 3704
Cost Center: 2024A G.O. Street Reconstruction Department Head:
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
2026 904,925$ 565,000$ 339,925$
2027 935,175 625,000 310,175 Process Used
2028 933,175 655,000 278,175
2029 934,550 690,000 244,550 The City is planning to issue $7,440,000 of Street Reconstruction Bonds
2030 929,300 720,000 209,300 in to facilitate the reconstruction of streets.
2031 932,300 760,000 172,300
2032 928,425 795,000 133,425
2033 927,675 835,000 92,675
2034 934,200 880,000 54,200
2035 933,300 915,000 18,300
9,293,025$ 7,440,000$ 1,853,025$
A D O P T E D 2 0 2 6 B U D G E T
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
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128
CITY OF ANDOVER, MINNESOTA
2026 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.
129
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130
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 38,647,330$ 45,384,280$ 45,384,280$ 44,261,057$
Revenues
General Property Taxes 2,424,627 3,184,868 3,184,868 3,412,165
Tax Increments 155,822 70,000 101,500 -
Special Assessments 1,087,685 2,187,000 1,717,400 3,737,400
Intergovernmental 6,893,146 5,693,153 5,706,639 10,013,083
Investment Income 1,804,467 77,500 897,000 880,000
User Charges 1,720,592 260,685 3,390,280 270,495
Miscellaneous 202,025 340,000 430,978 278,000
Total Revenues:14,288,364 11,813,206 15,428,665 18,591,143
Other Sources
Transfers In 1,512,459 710,100 1,460,100 840,729
Bond Proceeds 8,595,000 - - -
Bond Premium 711,221 - - -
Proceeds from Sale of Capital Assets 25,059 - - -
Total Other Sources:10,843,739 710,100 1,460,100 840,729
Total Revenues and Other Sources:25,132,103 12,523,306 16,888,765 19,431,872
Total Available:63,779,433 57,907,586 62,273,045 63,692,929
Expenditures
Purchased Services 150,666 - - -
Other Services and Charges 10,639,301 14,521,126 14,458,811 10,794,672
Capital Outlay 6,609,959 4,176,807 2,984,896 15,805,000
Total Expenditures:17,399,926 18,697,933 17,443,707 26,599,672
Other Uses
Operating Transfers Out 995,227 568,281 568,281 451,255
Total Expenditures and Other Uses:18,395,153 19,266,214 18,011,988 27,050,927
Fund Balance, December 31 45,384,280$ 38,641,372$ 44,261,057$ 36,642,002$
Change in Fund Balance 6,736,950$ (6,742,908)$ (1,123,223)$ (7,619,055)$
17%-15%-2%-17%
Description
City of Andover
Capital Projects Funds
2026 Budget Summary - All Capital Projects Funds
Statement of Revenues, Expenditures and Changes in Fund Balance
131
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 8,464,540$ 7,359,808$ 7,359,808$ 9,150,145$
Revenues
Special Assessments 33,272 25,000 6,000 5,000
Intergovernmental 5,767,505 - 13,486 8,000,000
Investment Income 407,337 25,000 150,000 175,000
User Charges 864,316 92,775 1,530,025 96,490
Total Revenues:7,072,430 142,775 1,699,511 8,276,490
Other Sources
Transfers In 300,000 300,000 300,000 400,000
Total Revenues and Other Sources:7,372,430 442,775 1,999,511 8,676,490
Total Available:15,836,970 7,802,583 9,359,319 17,826,635
Expenditures
Other Services and Charges 3,839,947 50,000 50,000 50,000
Capital Outlay 4,342,988 100,000 100,000 8,075,000
Total Expenditures:8,182,935 150,000 150,000 8,125,000
Other Uses
Operating Transfers Out 294,227 59,174 59,174 151,255
Total Expenditures and Other Uses:8,477,162 209,174 209,174 8,276,255
Fund Balance, December 31 7,359,808$ 7,593,409$ 9,150,145$ 9,550,380$
Change in Fund Balance (1,104,732)$ 233,601$ 1,790,337$ 400,235$
-13%3%24%4%
Description
City of Andover
Capital Projects Funds
Water Trunk Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
132
Fund:4110
Cost Center:Water Trunk Department Head:
Activity Type/Code:Capital Projects
Expenditure Highlights General Activity Description
Projects planned for 2026 include: The Water Trunk Capital Projects Fund accounts for water access fees
and trunk improvements as part of development.
New Development Projects 75,000$
Red Oaks Monitoring Area 8,000,000
Water Main Gate Valve Replacement 50,000 Process Used
8,125,000$ 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 2025 include:
New Development Projects 70,000$
Water Main Gate Valve Replacement 50,000
Water Main Improvements 30,000
150,000$
A portion of the connection fee is used to support the Water Treatment
Plant and is transferred to the Water Enterprise Fund.
C I T Y O F A N D O V E R , M I N N E S O T A
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
133
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 8,956,614$ 8,657,228$ 8,657,228$ 9,261,862$
Revenues
Special Assessments - 20,000 - 1,020,000
Investment Income 456,712 50,000 170,000 200,000
User Charges 126,664 14,960 174,634 15,705
Total Revenues:583,376 84,960 344,634 1,235,705
Other Sources
Transfers In 400,000 400,000 400,000 400,000
Total Revenues and Other Sources:983,376 484,960 744,634 1,635,705
Total Available:9,939,990 9,142,188 9,401,862 10,897,567
Expenditures
Other Services and Charges 2,196 - - -
Capital Outlay 1,280,566 140,000 140,000 3,995,000
Total Expenditures:1,282,762 140,000 140,000 3,995,000
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:1,282,762 140,000 140,000 3,995,000
Fund Balance, December 31 8,657,228$ 9,002,188$ 9,261,862$ 6,902,567$
Change in Fund Balance (299,386)$ 344,960$ 604,634$ (2,359,295)$
-3%4%7%-25%
Description
City of Andover
Capital Projects Funds
Sewer Trunk Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
134
Fund:4120
Cost Center:Sewer Trunk Department Head:
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 145,000$ station system to a large sewer interceptor, which is then carried to a
Rural Reserve - Area Analysis & Sanitary Sewer 3,850,000 metro treatment plant.
3,995,000$
Process Used
Projects planned for 2025 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 140,000$
C I T Y O F A N D O V E R , M I N N E S O T A
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
135
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 12,495,605$ 11,097,367$ 11,097,367$ 10,567,001$
Revenues
General Property Taxes 1,756,039 2,514,868 2,514,868 2,517,165
Special Assessments 1,050,888 2,139,000 1,709,000 2,710,000
Intergovernmental 1,036,098 5,693,153 5,693,153 1,763,083
Investment Income 529,784 - 200,000 225,000
Miscellaneous - - 513 -
Total Revenues:4,372,809 10,347,021 10,117,534 7,215,248
Other Sources
Transfers In 8,000 10,100 10,100 8,110
Total Revenues and Other Sources:4,380,809 10,357,121 10,127,634 7,223,358
Total Available:16,876,414 21,454,488 21,225,001 17,790,359
Expenditures
Other Services and Charges 5,368,590 10,288,000 10,168,000 5,759,929
Capital Outlay 210,457 290,000 290,000 -
Total Expenditures:5,579,047 10,578,000 10,458,000 5,759,929
Other Uses
Operating Transfers Out 200,000 200,000 200,000 200,000
Total Expenditures and Other Uses:5,779,047 10,778,000 10,658,000 5,959,929
Fund Balance, December 31 11,097,367$ 10,676,488$ 10,567,001$ 11,830,430$
Change in Fund Balance (1,398,238)$ (420,879)$ (530,366)$ 1,263,429$
-11%-4%-5%12%
Description
City of Andover
Capital Projects Funds
Road and Bridge Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
136
Fund:4140
Road and Bridge Department Head:
Capital Projects
Expenditure Highlights General Activity Description
Some of the major 2026 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 70,000
Curb, Sidewalk & Ped Ramp Replacement 120,000 Process Used
Annual Pavement Markings 100,000
Gravel Road Improvements 23,000 Construction projects are identified by the capital improvement process
Mill & Overlay 85,000 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 2,690,000 study, preparation of plans and specifications, public hearings, ordering of
Annual Street Reconstruction 446,929 the project, bidding the project and construction.
MSA - Intersection Upgrades 1,900,000
This fund also accounts for the pavement management program, which
5,759,929$ includes annual seal coating, crack sealing and overlays for roads.
Some of the major 2025 projects are as follows:
Annual Street Crack Seal 150,000$
Pedestrian Trail Maintenance 67,000
Curb, Sidewalk & Ped Ramp Replacement 120,000
Annual Pavement Markings 98,000
Gravel Road Improvements 22,000
Mill & Overlay 985,000
Pavement Rejuvenator Application 175,000
Street Full Depth Reclamation 2,831,000
MSA - Intersection Upgrades 4,000,000
MSA - Signal Improvements 750,000
MSA - New & Reconstruct Routes 540,000
MSA - Trail 290,000
MSA - Mill & Overlay 550,000
10,578,000$
C I T Y O F A N D O V E R , M I N N E S O T A
A D O P T E D 2 0 2 6 B U D G E T
City EngineerCost Center:
Activity Type/Code:
137
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 2,148,951$ 2,320,425$ 2,320,425$ 3,237,524$
Revenues
General Property Taxes 15,514 15,000 15,000 15,000
Investment Income 118,617 - 50,000 60,000
User Charges 605,701 126,975 1,396,177 131,400
Miscellaneous 14,338 - 10,435 -
Total Revenues:754,170 141,975 1,471,612 206,400
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:754,170 141,975 1,471,612 206,400
Total Available:2,903,121 2,462,400 3,792,037 3,443,924
Expenditures
Other Services and Charges 1,710 25,000 25,000 35,000
Capital Outlay 430,986 260,000 370,406 455,000
Total Expenditures:432,696 285,000 395,406 490,000
Other Uses
Operating Transfers Out 150,000 159,107 159,107 -
Total Expenditures and Other Uses:582,696 444,107 554,513 490,000
Fund Balance, December 31 2,320,425$ 2,018,293$ 3,237,524$ 2,953,924$
Change in Fund Balance 171,474$ (302,132)$ 917,099$ (283,600)$
8%-13%40%-9%
Description
City of Andover
Capital Projects Funds
Park Dedication Projects
Statement of Revenues, Expenditures and Changes in Fund Balance
138
Fund:4150
Park Dedication Projects Department Head:
Capital Projects
Expenditure Highlights General Activity Desciption
2026 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.
Annual Park Tree Additions 10,000
Tom Anderson Trail - Bench Additions 5,000
Skate Park - Expansion & Improvements 250,000 Process Used
Sunshine Park - Parking Lot Lights West & South 30,000
Hawkridge Park - Pave Parking Lot 150,000 The Park and Recreation Commission evaluates the needs of the
Oakview Park - Improvements 20,000 community with regard to park and recreation facilities.
Recommendations are made to the City Council and projects are then
490,000$ placed into the annual City Capital Improvement Plan.
2025 Projects include:
Annual Miscellaneous Projects 25,000$
Fields of Winslow Cove - New Park 170,000
Sunshine Park Basketball Court Improvements 65,000
Anoka County Dog Park Improvements 25,000
285,000$
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$
C I T Y O F A N D O V E R , M I N N E S O T A
City Engineer
A D O P T E D 2 0 2 6 B U D G E T
Cost Center:
Activity Type/Code:
139
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 784,850$ 755,719$ 755,719$ 853,219$
Revenues
General Property Taxes 354,030 355,000 355,000 355,000
Intergovernmental - - - -
Investment Income 32,851 - 14,000 16,000
Total Revenues:386,881 355,000 369,000 371,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:386,881 355,000 369,000 371,000
Total Available:1,171,731 1,110,719 1,124,719 1,224,219
Expenditures
Other Services and Charges 222,914 174,500 186,500 265,000
Capital Outlay 193,098 85,000 85,000 105,000
Total Expenditures:416,012 259,500 271,500 370,000
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:416,012 259,500 271,500 370,000
Fund Balance, December 31 755,719$ 851,219$ 853,219$ 854,219$
Change in Fund Balance (29,131)$ 95,500$ 97,500$ 1,000$
-4%13%13%0%
Description
City of Andover
Capital Projects Funds
Building Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
140
Fund:4160
Cost Center:Building Fund Department Head:
Activity Type/Code:Capital Projects
Expenditure Highlights General Activity Description
The Building Fund accounts for miscellaneous building improvement
Projects planned for 2026 include:projects for all facilities, including land acquisitions.
Annual parking lot maintenance 45,000$
City Hall Remodel 175,000 Process Used
Replacement - Salt Shed Roof 30,000
Replacement - Emergency Generator FS #3 50,000 Facilities are reviewed annually for non-recurring repairs or for future
Inspection of Switch Gear - CH & PW 15,000 facility needs.
New - Supplemental Heat in PW Washbay 55,000
370,000$
Projects planned for 2025 include:
Annual parking lot maintenance 45,000$
Replacement - Emergency Generator FS #2 35,000
Replacement - Water Heater ASN 5,000
Replacement - Fan Coil Unit ASN 6,500
Replacement - Garage Door Springs FS #2 18,000
Replacement - Sunshine Parking Lot Lights 50,000
City Hall Remodel 100,000
259,500$
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
141
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 1,135,052$ 1,266,971$ 1,266,971$ 1,846,415$
Revenues
Investment Income 54,083 - - -
User Charges 123,911 25,975 289,444 26,900
Miscellaneous - 250,000 290,000 250,000
Total Revenues:177,994 275,975 579,444 276,900
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:177,994 275,975 579,444 276,900
Total Available:1,313,046 1,542,946 1,846,415 2,123,315
Expenditures
Other Services and Charges 46,075 - - -
Capital Outlay - 1,600,000 - 1,700,000
Total Expenditures:46,075 1,600,000 - 1,700,000
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:46,075 1,600,000 - 1,700,000
Fund Balance, December 31 1,266,971$ (57,054)$ 1,846,415$ 423,315$
Change in Fund Balance 131,919$ (1,324,025)$ 579,444$ (1,423,100)$
12%-105%46%-77%
City of Andover
Capital Projects Funds
Trail & Transportation
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
142
Fund:4170
Cost Center:Trail & Transportation
Activity Type/Code:Capital Projects Department Head:
Expenditure Highlights General Activity Description
The Trail and Transportation Capital Projects Fund accounts for contributions
Projects planned for 2026 include:associated with land development to be used for constructing and upgrading
the City's Trail System.
8' Bituminous Trail and Bridge along Coon Creek -
Prairie Road to Catchers Creek East Addition 850,000$ Process Used
8' Bituminous Trail along Crosstown Blvd -
Xeon St to Prairie Road 850,000 The Park and Recreation Commission evaluates the needs of the community
with regard to trail facilities. Recommendations are made to the City Council
1,700,000$ and projects are then placed into the annual City Capital Improvement Plan.
Projects planned for 2025 include:
8' Bituminous Trail along Coon Creek -
East to existing trail in Shadowbrook 800,000$
8' Bituminous Trail along Crosstown Blvd -
Xeon St to Prairie Road 800,000 *
1,600,000$
* this segment will only be constructed if funds are available.
C I T Y O F A N D O V E R , M I N N E S O T A
Dir of PW / City Engineer
A D O P T E D 2 0 2 6 B U D G E T
143
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 3,062,213$ 3,728,040$ 3,728,040$ 4,335,036$
Revenues
General Property Taxes 299,044 300,000 300,000 525,000
Intergovernmental 89,543 - - 250,000
Investment Income 155,525 - 75,000 100,000
Miscellaneous 94,716 - 85,030 -
Total Revenues:638,828 300,000 460,030 875,000
Other Sources
Transfers In 360,459 - 750,000 32,619
Proceeds from Sale of Capital Assets 25,059 - - -
Total Other Sources:385,518 - 750,000 32,619
Total Revenues and Other Sources:1,024,346 300,000 1,210,030 907,619
Total Available:4,086,559 4,028,040 4,938,070 5,242,655
Expenditures
Other Services and Charges 214,031 56,500 56,500 -
Capital Outlay 144,488 628,000 546,534 1,475,000
Total Expenditures:358,519 684,500 603,034 1,475,000
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:358,519 684,500 603,034 1,475,000
Fund Balance, December 31 3,728,040$ 3,343,540$ 4,335,036$ 3,767,655$
Change in Fund Balance 665,827$ (384,500)$ 606,996$ (567,381)$
22%-10%16%-13%
City of Andover
Capital Projects Funds
Capital Equipment Reserve
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
144
Fund:4180
Cost Center:Capital Equipment Reserve
Activity Type/Code:Capital Projects Department Head:
Expenditure Highlights General Activity Description
Projects planned for 2026 include:Resources for this fund come from residual fund transfers, interest earnings,
and property tax (capital) levy.
Replacement - Rescue 21 #4819 350,000$ Process Used
Replacement - Tahoe #16 65,000
Replacement - One Ton Truck w/ Plow #577 110,000 During the budget processes, it was determined that various capital
Replacement - Watchfire Sign CH 80,000 expenditures were necessary. The Andover Management Team and Andover
Replacement - SCALE DR Solution 20,000 Vehicle Purchasing Committee reviewed departmental needs and prioritized
Replacement - Dump Truck w/ Plow #00-198 350,000 capital needs.
975,000$
Projects planned for 2025 include:
Replacement - 800 MHz Radios 50,000$
Replacement - One Ton Truck w/ Plow #134 110,000
Replacement - HPE VMWare Server Hosts 20,000
Replacement - GPS Antenna Survey Unit 28,000
Replacement - Sign Truck #08-408 100,000
Replacement - Mini Split QCTV Control Room 6,500
Replacement - Grass & Rescue Vehicle 335,000
Replacement - Thermal Imaging Cameras 35,000
684,500$
The one-time operating transfer consists of increasing the natural
disaster reserve to $500,000 ($150,000 addition), providing the City's
match ($250,000) for the Kelsey Round Lake trail reconstruction, and
to advance the replacement of a plow truck ($350,000).
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
145
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 -$ 1,422,956$ 1,422,956$ -$
Revenues
Investment Income (152) - 30,000 -
Other Sources
Transfers In 444,000 - - -
Bond Proceeds 1,155,000 - - -
Bond Premium 52,730 - - -
Total Other Sources:1,651,730 - - -
Total Revenues and Other Sources:1,651,578 - 30,000 -
Total Available:1,651,578 1,422,956 1,452,956 -
Expenditures
Purchased Services 20,246 - - -
Capital Outlay 7,376 1,073,807 1,452,956 -
Total Expenditures:27,622 1,073,807 1,452,956 -
Other Uses
Operating Transfers Out 201,000 - - -
Total Expenditures and Other Uses:228,622 1,073,807 1,452,956 -
Fund Balance, December 31 1,422,956$ 349,149$ -$ -$
Change in Fund Balance 1,422,956$ (1,073,807)$ (1,422,956)$ -$
n/a -75%-100%n/a
City of Andover
Capital Projects Funds
2024A G.O. Equipment Certificate
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
146
Fund:4216
2024A G.O. Equipment Certificates Department Head:
Capital Projects
Expenditure Highlights 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.
C I T Y O F A N D O V E R , M I N N E S O T A
Cost Center:Finance Director
Activity Type/Code:
A D O P T E D 2 0 2 6 B U D G E T
147
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 985,834$ 317,185$ 317,185$ 143,374$
Revenues
Tax Increments 155,822 70,000 101,500 -
Investment Income 26,396 - 2,500 -
Miscellaneous 92,971 90,000 45,000 28,000
Total Revenues:275,189 160,000 149,000 28,000
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:275,189 160,000 149,000 28,000
Total Available:1,261,023 477,185 466,185 171,374
Expenditures
Other Services and Charges 943,838 277,126 322,811 66,672
Capital Outlay - - - -
Total Expenditures:943,838 277,126 322,811 66,672
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:943,838 277,126 322,811 66,672
Fund Balance, December 31 317,185$ 200,059$ 143,374$ 104,702$
Change in Fund Balance (668,649)$ (117,126)$ (173,811)$ (38,672)$
-68%-37%-55%-27%
Description
City of Andover
Capital Projects Funds
Tax Increment Projects
Statement of Revenues, Expenditures and Changes in Fund Balance
148
Fund:4501
Tax Increment Projects Department Head:
Capital Projects
Expenditure Highlights General Activity Description
2026 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
Rental Property Expenditures 25,000$ reach the goals of the TIF district plans.
TIF Administration 41,672
66,672$ Process Used
2025 Budgeted expenditures include:Promotion and expansion of the commercial / industrial tax base through
redevelopment of land.
Redevelopment Site Purchases -$
Pay-As-You-Go Note 70,000
Rental Property Expenditures 90,000
TIF Administration 117,126
277,126$
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. TIF District 1-5 will
be decertified in 2026 and TIF District 1-6 was decertified in 2024.
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
Cost Center:
Activity Type/Code:
149
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 613,671$ 490,510$ 490,510$ 348,410$
Revenues
Special Assessments 3,525 3,000 2,400 2,400
Investment Income 23,314 2,500 5,500 4,000
Total Revenues:26,839 5,500 7,900 6,400
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:26,839 5,500 7,900 6,400
Total Available:640,510 496,010 498,410 354,810
Expenditures
Other Services and Charges - - - -
Other Uses
Operating Transfers Out 150,000 150,000 150,000 100,000
Total Expenditures and Other Uses:150,000 150,000 150,000 100,000
Fund Balance, December 31 490,510$ 346,010$ 348,410$ 254,810$
Change in Fund Balance (123,161)$ (144,500)$ (142,100)$ (93,600)$
-20%-29%-29%-27%
Description
City of Andover
Capital Projects Funds
Permanent Improvement Revolving
Statement of Revenues, Expenditures and Changes in Fund Balance
150
Fund:4601
Cost Center:Permanent Improvement Revolving Department Head:
Activity Type/Code:Capital Projects
Expenditure Highlights General Activity Description
No expenditures are planned for 2026. 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 $19 million
2023 200,000 of special assessments over the past 17 years. The annual cash flow of
2024 150,000 this fund is intended to eliminate unfunded projects through effective
2025 150,000 management of debt payments and project expenditures.
2026 100,000
2027 100,000 Use of these funds for a qualifying project require a 4/5th's vote.
2028 50,000
2029 50,000
1,200,000$
C I T Y O F A N D O V E R , M I N N E S O T A
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
151
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Fund Balance, January 1 -$ 7,968,071$ 7,968,071$ 4,518,071$
Revenues
Investment Income - - 200,000 100,000
Other Sources
Bond Proceeds 7,440,000 - - -
Bond Premium 658,491 - - -
Total Other Sources:8,098,491 - - -
Total Revenues and Other Sources:8,098,491 - 200,000 100,000
Total Available:8,098,491 7,968,071 8,168,071 4,618,071
Expenditures
Purchased Services 130,420 - - -
Other Services and Charges - 3,650,000 3,650,000 4,618,071
Total Expenditures:130,420 3,650,000 3,650,000 4,618,071
Other Uses
Operating Transfers Out - - - -
Total Expenditures and Other Uses:130,420 3,650,000 3,650,000 4,618,071
Fund Balance, December 31 7,968,071$ 4,318,071$ 4,518,071$ -$
Change in Fund Balance 7,968,071$ (3,650,000)$ (3,450,000)$ (4,518,071)$
n/a -46%-43%-100%
City of Andover
Capital Projects Funds
2024A G.O. Street Reconstruction Bonds
Statement of Revenues, Expenditures and Changes in Fund Balance
Description
152
Fund:4704
2024A G.O. Street Reconstruction Bonds Department Head:
Capital Projects
Expenditure Highlights General Activity Description
The following bond proceeds of $7,440,000 is to be used 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 $7,440,000 G.O.
Street Reconstruction Bonds to finance these improvements.
Some of the major projects are as follows:
2024 Bond Issuance Fees 130,420$ Process Used
2025 R & B - Annual Street Reconstruction 3,650,000
2026 R & B - Annual Street Reconstruction 4,618,071 Large projects that require more funding that the annual allocation lead
themselves to being financed through a long-term issuance of bonds.
8,398,491$
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.
C I T Y O F A N D O V E R , M I N N E S O T A
Cost Center:Finance Director
Activity Type/Code:
A D O P T E D 2 0 2 6 B U D G E T
153
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154
CITY OF ANDOVER, MINNESOTA
2026 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.
155
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156
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 13,044,147$ 14,438,347$ 14,438,347$ 13,462,957$
Revenues
Charges for Services 7,166,934 6,828,858 7,067,185 7,184,380
Interest 512,103 62,500 145,000 115,000
Meters 115,911 13,000 13,000 13,000
Miscellaneous 60,610 44,000 64,106 44,000
Total Revenues:7,855,558 6,948,358 7,289,291 7,356,380
Other Sources
Transfers In 294,227 59,174 59,174 151,255
Gain on the Sale of Capital Assets 3,266 - 3,248 -
Total Other Sources:297,493 59,174 62,422 151,255
Total Revenues and Other Sources:8,153,051 7,007,532 7,351,713 7,507,635
Total Available:21,197,198 21,445,879 21,790,060 20,970,592
Expenditures
Personal Services 1,314,104 1,420,585 1,494,950 1,567,536
Supplies and Materials 771,770 654,300 654,300 657,400
Other Services and Charges 3,111,507 3,474,326 3,474,326 3,563,824
Capital Outlay 508,118 364,000 1,781,047 397,000
Debt Service 86,806 - - -
Total Expenditures:5,792,305 5,913,211 7,404,623 6,185,760
Other Uses
Transfers Out 966,546 922,480 922,480 1,030,335
Total Expenditures and Other Uses:6,758,851 6,835,691 8,327,103 7,216,095
Unrestricted Net Assets, December 31 14,438,347$ 14,610,188$ 13,462,957$ 13,754,497$
Change in Unrestricted Net Assets 1,394,200$ 171,841$ (975,390)$ 291,540$
11%1%-7%2%
Description
City of Andover
Enterprise Funds
2026 Budget Summary - All Enterprise Funds
Statement of Revenues, Expenditures and Changes in Fund Net Assets
157
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 7,689,798$ 8,642,292$ 8,642,292$ 7,920,489$
Revenues
Charges for Services 3,623,870 3,233,323 3,450,000 3,352,299
Interest 320,251 30,000 100,000 50,000
Meters 115,911 13,000 13,000 13,000
Miscellaneous 60,610 44,000 64,106 44,000
Total Revenues:4,120,642 3,320,323 3,627,106 3,459,299
Other Sources
Transfers In 294,227 59,174 59,174 151,255
Gain on the Sale of Capital Assets 3,266 - 3,248 -
Total Other Sources:297,493 59,174 62,422 151,255
Total Revenues and Other Sources:4,418,135 3,379,497 3,689,528 3,610,554
Total Available:12,107,933 12,021,789 12,331,820 11,531,043
Expenditures
Personal Services 680,555 635,635 710,000 754,452
Supplies and Materials 730,153 579,000 579,000 580,500
Other Services and Charges 1,012,729 1,246,972 1,246,972 1,276,981
Capital Outlay 508,118 264,000 1,471,047 23,500
Debt Service 86,806 - - -
Total Expenditures:3,018,361 2,725,607 4,007,019 2,635,433
Other Uses
Transfers Out 447,280 404,312 404,312 499,468
Total Expenditures and Other Uses:3,465,641 3,129,919 4,411,331 3,134,901
Unrestricted Net Assets, December 31 8,642,292$ 8,891,870$ 7,920,489$ 8,396,142$
Change in Unrestricted Net Assets 952,494$ 249,578$ (721,803)$ 475,653$
12%3%-8%6%
Description
City of Andover
Enterprise Funds
Water
Statement of Revenues, Expenditures and Changes in Fund Net Assets
158
Fund: 5100 - Water Department:
Cost Center: 48100 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 5.79 6.06 5.32
Actual Current Budgeted
Service Expenses 2024 2025 2026
Personal Services 680,556$ 710,000$ 754,452$
Process Used Supplies & Materials 730,154 579,000 580,500
Other Services / Charges 400,046 494,437 501,481
Purchased Services 612,682 752,535 775,500
Capital Outlay - 1,471,047 23,500
Debt Service 735,301 - -
Other Uses 447,280 404,312 499,468
TOTAL 3,606,019$ 4,411,331$ 3,134,901$
Service Expenses By Category
Service Expense Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of connections 7,297 7,433 7,615
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 129.7 130.3 132.3 2024 2025 2026
Number of hydrants 1,387 1,395 1,411 Connections 7,297 7,433 7,615
Number of valves 3,231 3,248 3,292 Monthly 41.18$ 49.46$ 34.31$
Annual 494.18$ 593.48$ 411.67$
A D O P T E D 2 0 2 6 B U D G E T
C I T Y O F A N D O V E R , M I N N E S O T A
Water
Utilities Supervisor
Operate and maintain the City's water system including WTP, wells, towers and water
mains. Provide a continuous, potable, bacteria-free water supply at proper pressure
levels. Maintain customer water meters and respond to other service requests.
Maintain water distribution for fire protection system needs. Conform to all State and
Federal monitoring rules, provide tours and information to the public.
Operate wells and WTP in a manner that ensures a safe, clean and adequate water
supply, that will meet peak daily demands and fire protection demands. Maintain
wells, treatment facility, and related infrastructure. Operate and maintain chemical fee
equipment. Collect, analyze and record water samples daily. Maintain, test and
repair water meters. Respond to emergencies 24 hours a day. Work with contractors
to locate water mains, locate and operate gate valves, monitor tests during final
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 gate valves to ensure proper operation.
Current 2025: Capital Outlay includes $1,345,500 for radon mitigation and the
replacement of the plate settler ($180,000) at the water treatment plant. 2024 is also
the final year of debt service payments.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
Debt Service
Other Uses
159
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 3,855,087$ 3,937,755$ 3,937,755$ 3,671,134$
Revenues
Charges for Services 2,827,304 2,901,238 2,901,238 3,078,450
Interest 124,151 30,000 30,000 50,000
Total Revenues:2,951,455 2,931,238 2,931,238 3,128,450
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:2,951,455 2,931,238 2,931,238 3,128,450
Total Available:6,806,542 6,868,993 6,868,993 6,799,584
Expenditures
Personal Services 386,090 473,813 473,813 496,685
Supplies and Materials 24,726 40,300 40,300 40,900
Other Services and Charges 1,958,802 1,978,444 1,978,444 2,026,711
Capital Outlay - 100,000 205,000 3,500
Total Expenditures:2,369,618 2,592,557 2,697,557 2,567,796
Other Uses
Transfers Out 499,169 500,302 500,302 500,381
Total Expenditures and Other Uses:2,868,787 3,092,859 3,197,859 3,068,177
Unrestricted Net Assets, December 31 3,937,755$ 3,776,134$ 3,671,134$ 3,731,407$
Change in Unrestricted Net Assets 82,668$ (161,621)$ (266,621)$ 60,273$
2%-4%-7%2%
Description
City of Andover
Enterprise Funds
Sanitary Sewer
Statement of Revenues, Expenditures and Changes in Fund Net Assets
160
Fund: 5200 - Sanitary Sewer Department:
Cost Center: 48200 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 3.15 3.40 3.38
Actual Current Budgeted
Service Expenses 2024 2025 2026
Personal Services 386,090$ 473,813$ 496,685$
Supplies & Materials 24,726 40,300 40,900
Process Used Other Services / Charges 110,305 119,444 102,956
Purchased Services 1,848,496 1,859,000 1,923,755
Capital Outlay - 205,000 3,500
Other Uses 499,169 500,302 500,381
TOTAL 2,868,786$ 3,197,859$ 3,068,177$
Service Expenses By Category
Service Expense Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of REC's 10,268 10,375 10,475 Actual Current Budgeted
Number of lift stations 11 11 12 Expenses Per Connection 2024 2025 2026
Miles of sewer main 105.7 106.3 108 SAC's 10,268 10,375 10,475
Number of sewer manholes 2,511 2,526 2,546 Monthly 23.28$ 25.69$ 24.41$
Annual 279.39$ 308.23$ 292.90$
C I T Y O F A N D O V E R , M I N N E S O T A
A D O P T E D 2 0 2 6 B U D G E T
Sanitary Sewer
Utility Supervisor
City sewage is collected through a pipe and lift station network to large Metro City Sewer
interceptor pipes that carry it to the Metro Treatment Plant for processing. The sewer
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
maintains the integrity of the entire sanitary sewer system.
Inspect all lift stations five days per week. Clean one-quarter of the City's sewer
collection system via jetting and vacuuming each year. City has implemented a
televising program of the collection system that analyzes the entire system over a five
year period. A spot check program checks flows in problem areas. Start I/I program to
monitor inflow 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. Respond to and record all requests from customers, respond to
emergencies 24 hours a day. Contract out all major system repairs.
Current 2025 Capital Outlay includes a lift station pump upgrade.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
Other Uses
161
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 1,499,262$ 1,858,300$ 1,858,300$ 1,871,334$
Revenues
Charges for Services 715,760 694,297 715,947 753,631
Interest 67,701 2,500 15,000 15,000
Total Revenues:783,461 696,797 730,947 768,631
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:783,461 696,797 730,947 768,631
Total Available:2,282,723 2,555,097 2,589,247 2,639,965
Expenditures
Personal Services 247,459 311,137 311,137 316,399
Supplies and Materials 16,891 35,000 35,000 36,000
Other Services and Charges 139,976 248,910 248,910 260,132
Capital Outlay - - 105,000 370,000
Total Expenditures:404,326 595,047 700,047 982,531
Other Uses
Transfers Out 20,097 17,866 17,866 30,486
Total Expenditures and Other Uses:424,423 612,913 717,913 1,013,017
Unrestricted Net Assets, December 31 1,858,300$ 1,942,184$ 1,871,334$ 1,626,948$
Change in Unrestricted Net Assets 359,038$ 83,884$ 13,034$ (244,386)$
24%5%1%-13%
Description
City of Andover
Enterprise Funds
Storm Sewer
Statement of Revenues, Expenditures and Changes in Fund Net Assets
162
Fund: 5300 - Storm Sewer Department:
Cost Center: 48300 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 2.10 2.19 2.33
Actual Current Budgeted
Process Used Service Expenses 2024 2025 2026
Personal Services 247,459$ 311,137$ 316,399$
Supplies & Materials 16,892 35,000 36,000
Other Services / Charges 76,791 89,760 97,832
Purchased Services 63,185 159,150 162,300
Capital Outlay - 105,000 370,000
Other Uses 20,097 17,866 30,486
TOTAL 424,424$ 717,913$ 1,013,017$
Service Expenses By Category
Service Expense Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Number of billable units 11,614 11,672 11,800
Mileage of storm lines maintained 87.2 87.7 88.3
Maint. of catch basins & manholes 4,311 4,342 4,382 Actual Current Budgeted
Maint. of ponds 562 564 566 Expenses Per Customer 2024 2025 2026
Maint. of culverts 366 366 366 Billable Units 11,614 11,672 11,800
Miles swept 876 2360 2500 Monthly 3.05$ 5.13$ 7.15$
Storm Lift Stations 1 1 1 Annual 36.54$ 61.51$ 85.85$
C I T Y O F A N D O V E R , M I N N E S O T A
Storm Sewer
Utility Supervisor
A D O P T E D 2 0 2 6 B U D G E T
Maintenance of all storm sewers, catch basins, manholes, pipes, ditches, and sediment
ponds.
The ditches and storm water ponds are cleaned with a backhoe for better drainage and to
avoid the ponding of stagnant water. This dirt is hauled away or dumped in low places on
ditch banks. When it is dumped on site, it becomes necessary to level and grade the
banks to facilitate proper mowing. All catch basins and pipes are inspected and cleaned
with a vac truck. The material is then hauled away for proper disposal. Occasional use
of outside contractors to maintain parts of the system. Televising a portion of the system
each year to help comply with the new State and Federal regulations. Streets are swept
twice a year and as needed to protect water quality and reduce maintenance to
infrastructure.
Purchased Services includes storm water improvements in 2025 and 2026. Capital
Outlay for Budget 2026 includes the replacement of a street sweeper.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
Capital Outlay
Other Uses
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CITY OF ANDOVER, MINNESOTA
2026 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.
165
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166
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 1,209,835$ 1,547,259$ 1,547,259$ 1,619,601$
Revenues
Charges for Services 1,890,353 1,965,601 1,965,601 2,061,528
Interest Income 53,748 4,000 15,000 15,000
Miscellaneous 33,243 - 14,372 -
Total Revenues:1,977,344 1,969,601 1,994,973 2,076,528
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:1,977,344 1,969,601 1,994,973 2,076,528
Total Available:3,187,179 3,516,860 3,542,232 3,696,129
Expenditures and Other Uses
Personal Services 668,247 693,838 693,838 831,181
Supplies and Materials 356,840 522,920 488,700 524,920
Other Services and Charges 614,833 703,093 740,093 713,709
Total Expenditures:1,639,920 1,919,851 1,922,631 2,069,810
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:1,639,920 1,919,851 1,922,631 2,069,810
Unrestricted Net Assets, December 31 1,547,259$ 1,597,009$ 1,619,601$ 1,626,319$
Change in Unrestricted Net Assets 337,424$ 49,750$ 72,342$ 6,718$
28%3%5%0%
Description
City of Andover
Internal Service Funds
2026 Budget Summary - All Internal Service Funds
Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets
167
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 470,498$ 698,993$ 698,993$ 752,108$
Revenues
Charges for Services 1,141,836 1,175,380 1,175,380 1,206,500
Interest Income 27,158 2,000 10,000 10,000
Miscellaneous 3,047 - - -
Total Revenues:1,172,041 1,177,380 1,185,380 1,216,500
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:1,172,041 1,177,380 1,185,380 1,216,500
Total Available:1,642,539 1,876,373 1,884,373 1,968,608
Expenditures and Other Uses
Personal Services 405,851 424,622 424,622 461,277
Supplies and Materials 344,740 490,620 456,400 492,620
Other Services and Charges 192,955 259,243 251,243 258,959
Total Expenditures:943,546 1,174,485 1,132,265 1,212,856
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:943,546 1,174,485 1,132,265 1,212,856
Unrestricted Net Assets, December 31 698,993$ 701,888$ 752,108$ 755,752$
Change in Unrestricted Net Assets 228,495$ 2,895$ 53,115$ 3,644$
49%0%8%0%
Description
City of Andover
Internal Service Funds
Central Equipment Maintenance
Statement of Revenues, Expenditures and Changes in Fund Net Assets
168
Fund: 6100 - Central Equipment Department:
Cost Center: 48800 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 3.44 3.44 3.39
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 405,850$ 424,622$ 461,277$
Supplies & Materials 344,741 456,400 492,620
Other Services / Charges 111,515 135,434 137,150
Process Used Purchased Services 81,440 115,809 121,809
TOTAL 943,546$ 1,132,265$ 1,212,856$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Fleet Vehicles - Trailers 88 88 90
Inspections - DOT's & Garbage Haulers 92 96 96
Fuel - Unleaded (gal)20,000 21,500 23,000
Fuel - Diesel (gal)28,800 31,000 32,000
Battery-Powered Equipment 25 25 28 Actual Current Budgeted
Snow Removal Attachments 66 66 66 Expenditures Per Capita 2024 2025 2026
Building Equipment 17 17 17 Population - Estimates 32,596 32,796 32,996
Monthly 2.41$ 2.88$ 3.06$
Annual 28.95$ 34.52$ 36.76$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Vehicle Maintenance
Vehicle Maintenance Supervisor
A D O P T E D 2 0 2 6 B U D G E T
Maintains and repairs all City motorized and non-motorized vehicles and equipment to
provide safe operation. Evaluates equipment needs, orders equipment/vehicles and writes
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
work, are done at the Vehicle Maintenance Shop. Staff inspects garbage trucks as part of
their license process, and performs commercial vehicle inspections required on all
applicable City vehicles including the Fire Department.
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
removal equipment.
Supplies & Materials continue to climb due to the cost of fuel and replacement parts.
Purchases Services - sending items out for repairs has increased substantially.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
169
Actual Adopted Estimate Adopted
2024 2025 2025 2026
Unrestricted Net Assets, January 1 739,337$ 848,266$ 848,266$ 867,493$
Revenues
Charges for Services 748,517 790,221 790,221 855,028
Interest Income 26,590 2,000 5,000 5,000
Miscellaneous 30,196 - 14,372 -
Total Revenues:805,303 792,221 809,593 860,028
Other Sources
Transfers In - - - -
Total Revenues and Other Sources:805,303 792,221 809,593 860,028
Total Available:1,544,640 1,640,487 1,657,859 1,727,521
Expenditures and Other Uses
Personal Services 262,396 269,216 269,216 369,904
Supplies and Materials 12,100 32,300 32,300 32,300
Other Services and Charges 421,878 443,850 488,850 454,750
Total Expenditures:696,374 745,366 790,366 856,954
Other Uses
Transfers Out - - - -
Total Expenditures and Other Uses:696,374 745,366 790,366 856,954
Unrestricted Net Assets, December 31 848,266$ 895,121$ 867,493$ 870,567$
Change in Unrestricted Net Assets 108,929$ 46,855$ 19,227$ 3,074$
15%6%2%0%
Description
City of Andover
Internal Service Funds
Risk Management
Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets
170
Fund: 6200 - Risk Management Department:
Cost Center: 48900 Director/Manager:
Activity Description Actual Current Budgeted
Staffing Levels 2024 2025 2026
FTE Equivalents 0.10 0.10 0.10
Actual Current Budgeted
Service Expenditures 2024 2025 2026
Personal Services 262,396$ 269,216$ 369,904$
Supplies & Materials 12,100 32,300 32,300
Process Used Other Services / Charges 335,315 351,600 347,500
Purchased Services 86,563 137,250 107,250
TOTAL 696,374$ 790,366$ 856,954$
Service Expenditure Highlights
Actual Current Budgeted
Performance Measures 2024 2025 2026
Workers Comp Mod Factor 0.80 0.96 1.85
Commercial Insurance Change 3.6%-1.3%-2.0%
Actual Current Budgeted
Expenditures Per Capita 2024 2025 2026
Population - Estimates 32,596 32,796 32,996
Monthly 1.78$ 2.01$ 2.16$
Annual 21.36$ 24.10$ 25.97$
C I T Y O F A N D O V E R , M I N N E S O T A
Service Expenditures By Category
Risk Management
Finance Director
A D O P T E D 2 0 2 6 B U D G E T
The Risk Management Fund was established to provide funding for compensated
absences, safety training, loss reduction and insurance premium deductibles. This
fund 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.
The City Administrator / Finance Director along with the Human Resources Manager
promote various safety and wellness programs with the funding received. One of the
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
League of Minnesota Cities Insurance Trust.
No major changes planned for Budgeted 2026. Workers Comp premium increased
significantly due to recent claims history.
Personal Services
Supplies & Materials
Other Services / Charges
Purchased Services
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172
Transfer In Transfer Out Amount Purpose
General Fund Water EF 76,818$ Admin allocation
General Fund Sewer EF 77,731 Admin allocation
General Fund Storm Sewer EF 30,486 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
2021A GO Equipment Certificates DSF Capital Equipment Reserve CPF 32,619 Close Fund
2021A GO Street Reconstruction Bonds DSF Road & Bridge CPF 200,000 Debt service allocation
2021A GO Street Reconstruction Bonds DSF Permanent Improvement Revolving CPF 100,000 Debt service allocation
Water Trunk CPF Water EF 400,000 Replacement reserve
Sewer Trunk CPF Sewer EF 400,000 Replacement reserve
Road and Bridge CPF Right of Way Management/Utility SRF 8,110 Roadway degredation
Water EF Water Trunk CPF 151,255 Plant Operations
1,822,319$
CITY OF ANDOVER
Budget Year 2026
Operating Transfers
173
CITY OF ANDOVER
2026 - 2030 CIP Development Calendar
Date Activity Responsibility
March 26, 2025 Council adopts 2026 Budget Development Guidelines. City Council / Staff
March 27, 2025 Vehicle Purchasing Committee Review of CIP Equipment Vehicle Purchasing Committee
April 14, 2025
Draft 2026 - 2030 CIP Calendar.
Finance
April 14 - May 2, 2025 Prepare base CIP Sheets. Finance
April 22, 2025 2026 - 2030 Capital Improvement Plan Discussion City Council / Staff
May 5, 2025 CIP kick-off meeting with Department Heads to discuss CIP sheet content. (if
needed)
Department Heads
May 6, 2025 Projected cash flow statements prepared. Finance
May 27, 2025 City Council progress update and Council CIP priority discussion. City Council / Staff
June 3, 2025 All projects updated in CIP program. Department Heads
June 4, 2025 Review projects – new and shifts. Department Heads
June 24, 2025 City Council progress update and Council CIP priority discussion. City Council / Staff
July - August, 2025 Commission and Committee review. Admin / Department Heads
July 2, 2025 CIP project sheets completed. Department Heads
July 4, 2025
July 8, 2025
CIP project sheets staff initial review.
Vehicle Purchasing Committee review of CIP equipment. (if needed)
Admin / Department Heads
Vehicle Purchasing Committee
July 22, 2025 City Council review of City Utilities projects. City Council / Staff
August 1, 2025 CIP project sheet staff final review. Admin / Department Heads
August 1 - 11, 2025 Preparation of final draft of 2026 - 2030 CIP for Council Workshop. Finance
August 26, 2025
September 5, 2025
City Council review of draft 2026 - 2030 CIP.
Publish Public Hearing
City Council / Staff
Finance
September 16, 2025 City Council holds 2026 - 2030 CIP public hearing. City Council
September 16, 2025 City Council adopts 2026 - 2030 CIP. City Council
174
2026 through 2030
Capital Improvement PlanAndover, MN
Department Project #2026 2027 2028 2029 2030 Total
Building
Replacement - Permit & Scheduling
Software 26-42300-01 15,000 0 0 0 0 15,000
General Fund 15,000 15,000
Replace the current permitting and scheduling software with a version that allows contractors/owners to pay for permits online; but also, access permits/inspections online too.
Replacement - SUV #19-08 29-42300-01 0 0 0 40,000 0 40,000
Capital Equipment Reserve 40,000 40,000
Replace unit #19-08, a 2019 Chevrolet Equinox AWD w/ 49,103 miles.
Replacement - SUV #20-04 30-42300-01 0 0 0 0 40,000 40,000
Capital Equipment Reserve 40,000 40,000
Replace unit #20-04, a 2020 Chevrolet Equinox AWD w/ 38,062 miles.
Building Total 15,000 0 0 40,000 40,000 95,000
Central Equipment
Replacement - Service Truck #01-371 27-48800-01 0 65,000 0 0 0 65,000
Capital Equipment Reserve 65,000 65,000
Replace unit #371, a 2001 Chevrolet S10 Ext Cab 4x4 truck with 157,221 miles. The replacement truck would be a crew cab with a tailgate lift.
Central Equipment Total 0 65,000 0 0 0 65,000
Community Center
Replacement - Door Hardware 26-44000-01 15,000 0 0 0 0 15,000
Comm Ctr Operations 15,000 15,000
Doors #1A & 1B, Door #2 and the Sports Complex double doors from the hallway were part of the expansion project and they continue to fail. Door #13 was redone in 2024. Add keyfob to Door #2
Replacement - Field House Lighting 26-44400-01 75,000 0 0 0 0 75,000
Comm Ctr Operations 75,000 75,000
Produced Using Plan-It CIP Software 175
The lighting in the original field house is in need of replacement. An LED bulb upgrade was completed in 2018.
Replacement - Flooring 27-44000-01 0 15,000 0 0 0 15,000
Comm Ctr Operations 15,000 15,000
Replacement of carpet, rubber matting, and/or concrete flooring within the Andover Community Center.
Replacement - East Parking Lot
Pavement 27-44000-02 0 540,000 0 0 0 540,000
Comm Ctr Operations 140,000 140,000
YMCA 400,000 400,000
Reclaim and pave original parking lot on east side of the Community Center and the north and south drive lanes.
Replacement - Outdoor Patio &
Furniture 27-44000-05 0 20,000 0 0 0 20,000
Comm Ctr Operations 20,000 20,000
The patio area on the SW corner of the facility is in need of a resurfacing. Outdoor seating and garbage cans need to be replaced.
Replacement - Battery Pack -
Zamboni #04-552 27-44300-01 0 13,000 0 0 0 13,000
Central Equipment ISF 13,000 13,000
Replace Zamboni 552 battery pack.
Repaint Ice Arena ceiling 27-44300-02 0 200,000 0 0 0 200,000
Comm Ctr Operations 200,000 200,000
Repaint the ice arena ceiling.
Replacement - RTU#3 27-44300-03 0 230,000 0 0 0 230,000
Comm Ctr Operations 230,000 230,000
RTU #3 controls the heating/cooling for the Ice Arena hallway and all the adjacent rooms: Locker rooms, bathrooms, storage, boiler room, etc..
Replacement - ACC share of YMCA
roof 28-44000-01 0 0 100,000 0 0 100,000
Comm Ctr Operations 100,000 100,000
Full roof replacement (rubber membrane). YMCA will have pool, fitness and a share of common space. Reset and paint existing gas piping while roof is under construction
Replacement - Security/Door
Access/Cameras 28-44000-02 0 0 25,000 0 0 25,000
Comm Ctr Operations 25,000 25,000
Add additional security features, key fobs, upgraded cameras, re key original facility doors.
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 176
Replacement - Battery Pack -
Lithium Ion Machine 28-44300-01 0 0 26,000 0 0 26,000
Central Equipment ISF 26,000 26,000
Replace the lithium ion battery pack for the electric Zamboni. Machine #2.
Replacement - Fieldhouse Gym
Equipment 28-44400-01 0 0 60,000 0 0 60,000
Comm Ctr Operations 60,000 60,000
Replacement of the basketball hoop hardware, the divider curtains, and the control panel that raises/lowers equipment. The addition of permanent volleyball nets that raise/lower out of ceiling.
Replacement - RTU#4 28-44400-02 0 0 125,000 0 0 125,000
Comm Ctr Operations 125,000 125,000
RTU #4,5,6 controls the heating/cooling for a portion of the field house. There are 3 units that control that space.
Replacement - Generator 29-44000-03 0 0 0 55,000 0 55,000
Comm Ctr Operations 55,000 55,000
Replacement of the generator that provides emergency back up power to some of the vital systems within the facility.
Replacement - Information Desk 30-44000-01 0 0 0 0 35,000 35,000
Comm Ctr Operations 35,000 35,000
Remodel or potential move the location of the information desk.
Community Center Total 90,000 1,018,000 336,000 55,000 35,000 1,534,000
Emergency Management
Replacement - Emergency Sirens 30-42400-01 0 0 0 0 50,000 50,000
Facility Maint. - Building Fund 50,000 50,000
Replace emergency sirens, two per year.
Emergency Management Total 0 0 0 0 50,000 50,000
Engineering
New Development Projects 26-41600-01 220,000 230,000 240,000 250,000 260,000 1,200,000
Sewer Trunk Fund 145,000 150,000 155,000 160,000 165,000 775,000
Water Trunk Fund 75,000 80,000 85,000 90,000 95,000 425,000
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.
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 177
Pedestrian Trail Maintenance 26-41600-02 70,000 73,000 76,000 80,000 84,000 383,000
Road & Bridge Funds 70,000 73,000 76,000 80,000 84,000 383,000
This project provides maintenance such as crack filling and fog sealing for the City's pedestrian trail system.
New Pedestrian Trail and Sidewalk
Segments 26-41600-03 1,700,000 0 0 0 0 1,700,000
Grant 250,000 250,000
Trail Funds 1,450,000 1,450,000
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:
2026: 8' Bit Trail and Bridge along the north side of Coon Creek from Prarire Road to Catchers Creek East Addition which includes a bridge crossing over Coon Creek ($850,000). Project was moved from 2025 to 2026.
2026: 8' Bit Trail on the south side of Crosstown Blvd from Xeon Street to Prairie Road ($850,000). Project was moved from 2025 to 2026.
2027-2030: Future Trail segments TBD as funding becomes available.
Pedestrian/Park Trail
Reconstruction 26-41600-06 500,000 0 0 0 0 500,000
General Fund 250,000 250,000
Grant 250,000 250,000
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. 2026- Kelsey Round Lake Park Trail ($500,000) The City
was awarded a matching DNR grant for up to $300,000 to be used towards this project in 2026.
Replacement - Chevrolet Tahoe #02-
16 26-41600-07 65,000 0 0 0 0 65,000
Capital Equipment Reserve 65,000 65,000
Replace unit #16, a 2002 Chevy Tahoe with 140,030 miles to be replaced with a pickup truck.
Replacement - Total Station Survey
Equipment 28-41600-01 0 0 45,000 0 0 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.
Engineering Total 2,555,000 303,000 361,000 330,000 344,000 3,893,000
Facility Management
Annual Parking Lot
Maintenance/Replacement 26-41900-01 45,000 90,000 45,000 45,000 45,000 270,000
Facility Maint. - Building Fund 45,000 90,000 45,000 45,000 45,000 270,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 178
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:
2026-2030 Miscellaneous Crack Sealing & Pavement Sealant ($45,000 per year)
2027- Fire Station 3 Full Depth Reclamation ($45,000)
2026-2030 Parking Lots TBD
City Hall Remodel 26-41900-02 175,000 0 0 0 0 175,000
Facility Maint. - Building Fund 175,000 175,000
Remodel / update City Hall. Phase 2: Update offices and cubicle areas.
Replacement - Salt Shed Roof 26-41900-03 30,000 0 0 0 0 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 26-41900-04 50,000 0 0 0 0 50,000
Facility Maint. - Building Fund 50,000 50,000
Replace the emergency generator at Fire Station #3.
Inspection of Switch Gear 26-41900-05 15,000 0 0 0 0 15,000
Facility Maint. - Building Fund 15,000 15,000
Due to recent electrical issues at Public Works, it has been recommended by the electrician we use for the City to investigate all electrical connections in the switch gear at Public works and City Hall.
Supplemental Heat Public Works
Wash Bay 26-48800-01 55,000 0 0 0 0 55,000
Facility Maint. - Building Fund 55,000 55,000
Elevated tube heating unit to be added to the Public Works wash bay to assist with heating the facility in the winter months.
Replacement - Fire Sprinkler System
CH 28-41900-01 0 0 50,000 0 0 50,000
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 0 0 50,000 0 0 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 0 0 50,000 0 0 50,000
Facility Maint. - Building Fund 50,000 50,000
Replace the fire sprinkler system at Public Works.
Replacement - Carpet / Tile 29-41900-01 0 0 0 30,000 0 30,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 179
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.
Surface Seal all Brick Structures 30-41900-02 0 0 0 0 100,000 100,000
Comm Ctr Operations 15,000 15,000
Facility Maint. - Building Fund 56,000 56,000
Water Fund 29,000 29,000
A surface sealing application would be initiated for all brick and/or block municipal buildings. The buildings include: City Hall, Public Works, Fire Station 1, 2, & 3, Sunshine Park Building, Prairie Knoll Park Building, Andover
Station North Park Building, Community Center and all utility department buildings such as the pump houses and treatment facility.
Facility Management Total 370,000 90,000 195,000 75,000 145,000 875,000
Fire
Replacement - Rescue 21 #4819 26-42200-01 350,000 0 0 0 0 350,000
Capital Equipment Reserve 350,000 350,000
Replace unit #4819, a 2007 Chevrolet 3500 Crew Cab Truck with 18,571 miles.
Replacement - 2 Combination
Extrication Tools 27-42200-01 0 34,000 0 0 0 34,000
Capital Equipment Reserve 34,000 34,000
Replace 2 older hydraulic tools sets with battery powered combination extrication cutter/spreader tools (2 sets).
Replacement - Engine 11 #4821 28-42200-01 0 0 1,000,000 0 0 1,000,000
Capital Equipment Reserve 1,000,000 1,000,000
Replace unit #4821, a 2010 Pierce Velocity Pumper with 51,002 miles. This truck carries 750 gallons of water and has a 1,250GPM pump.
Replacement - Ford Interceptor
#4827 28-42200-02 0 0 75,000 0 0 75,000
Capital Equipment Reserve 75,000 75,000
Replace unit #4827, a 2015 Ford Interceptor SUV with 57,837 miles.
Replacement - GMC Sierra #4826 29-42200-01 0 0 0 70,000 0 70,000
Capital Equipment Reserve 70,000 70,000
Replace unit #4826, a 2015 GMC Sierra Double Cab truck with 32,072 miles.
Replacement - Tanker 21 #4808 30-42200-02 0 0 0 0 550,000 550,000
Capital Equipment Reserve 550,000 550,000
Replace unit #4808, a 2002 Sterling tanker with 13,744 miles and a 2,500 gallon tank with a 750 GPM pto pump.
Fire Total 350,000 34,000 1,075,000 70,000 550,000 2,079,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 180
Information Technology
Replacement - Watchfire Sign City
Hall 26-41420-01 80,000 0 0 0 0 80,000
Capital Equipment Reserve 80,000 80,000
Replace aging watchfire sign at city hall location with new 10mm sign.
Replacement - SCALE DR solution 26-41420-03 20,000 0 0 0 0 20,000
Capital Equipment Reserve 20,000 20,000
Adding SCALE HC1300-DR node at remote location for DR solution (possibly replace current DATTO).
Replacement - Security System
Upgrade 27-41420-01 0 100,000 0 0 0 100,000
Comm Ctr Operations 10,000 10,000
Facility Maint. - Building Fund 80,000 80,000
Water Fund 10,000 10,000
Replace existing door access' and cameras with a new system that consistent at all city buildings.
Replacement - Fiber between City
Hall & PW 27-41420-02 0 15,000 0 0 0 15,000
Facility Maint. - Building Fund 15,000 15,000
Remove and replace aging multimode fiber with new singlemode fiber.
Information Technology Total 100,000 115,000 0 0 0 215,000
Park & Rec - Operations
Replace/Repair Play Structures -
Various Parks 26-45000-01 200,000 200,000 200,000 200,000 200,000 1,000,000
General Fund 200,000 200,000 200,000 200,000 200,000 1,000,000
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:
2026 - Creekview Crossing Park, and Andover Station North Park.
2027 - Fox Meadows Park, Meadows of Round Lake Park, and Woodland Crossing Park.
2028 - Meadowood North Park, Sophie’s South Park, and Oak Bluff Park.
2029 - Nordeen’s Park, Hickory Meadows Park, and Timber Trails Park.
2030 - Pleasant Oaks Park, Green Acres Park, and Northwoods East Park.
Replace/Repair Major Park Projects -
Various Parks 26-45000-02 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
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 181
Future Projects: Fence rebuilds at various parks, shelter replacements, parking lot and interior park trail reconstuction
Replacement - One Ton Truck w/
Plow #07-577 26-45000-03 110,000 0 0 0 0 110,000
Capital Equipment Reserve 110,000 110,000
Replace unit #577, a 2007 Ford F450 4x4 w/ plow and 84,043 miles.
Replacement - Toro Zero-Turn
Mower #09-592 27-45000-03 0 17,000 0 0 0 17,000
Capital Equipment Reserve 17,000 17,000
Replace unit #09-592, a 2009 Toro G3 zero-turn mower with 1,711 hours.
Replacement - Truckster #98-548 27-45000-04 0 15,000 0 0 0 15,000
Capital Equipment Reserve 15,000 15,000
Replace unit #548, a 1998 Truckster with 5,784 hours.
Replacement - Toro Groundsmaster
#07-564 27-45000-05 0 80,000 0 0 0 80,000
Capital Equipment Reserve 80,000 80,000
Replace unit #564, a 2007 Toro Groundsmaster 328-D 4WD with 1,259 hours.
Replacement - Karcher #17-587 27-45000-06 0 220,000 0 0 0 220,000
Capital Equipment Reserve 220,000 220,000
Replace unit #17-587, a 2017 Karcher MIC 84 trail machine with 1,631 hours..
Replacement - One Ton Truck w/
Plow #13-501 28-45000-03 0 0 110,000 0 0 110,000
Capital Equipment Reserve 110,000 110,000
Replace unit #13-501, a 2013 Chevrolet 3500 w/ lift gate, 4x4, & plow with 65,582 miles.
Replacement - Trailer #T-551 28-45000-04 0 0 8,500 0 0 8,500
Capital Equipment Reserve 8,500 8,500
Replace unit #T-551, a 2003 Felling skid steer trailer.
Replacement - Sunshine Park
Parking Lot 28-45000-05 0 0 130,000 0 0 130,000
Facility Maint. - Building Fund 130,000 130,000
Reclaim and pave the south and west lot and replace miscellaneous concrete curb sections at Sunshine Park: 2027 West Parking Lot ($130,000)
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 182
Replacement - Toro Workman #04-
566 29-45000-03 0 0 0 15,000 0 15,000
Capital Equipment Reserve 15,000 15,000
Replace unit #566, a 2004 Toro Workman with 860 hours.
Replacement - One Ton Truck w/
Plow #14-510 29-45000-04 0 0 0 115,000 0 115,000
Capital Equipment Reserve 115,000 115,000
Replace unit #14-510, a 2015 GMC 3500 w/ a lift gate & plow equipment with 77,465 miles.
Replacement - One Ton Truck #17-
502 30-45000-03 0 0 0 0 90,000 90,000
Capital Equipment Reserve 90,000 90,000
Replace unit #17-502, a 2017 GMC 3500 Crew Cab 4x4 with 33,432 miles.
Park & Rec - Operations Total 345,000 567,000 483,500 365,000 325,000 2,085,500
Park & Rec - Projects
Annual Miscellaneous Park Projects 26-45001-01 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.
Annual Park Tree Additions 26-45001-02 10,000 10,000 10,000 10,000 10,000 50,000
Park Dedication Funds 10,000 10,000 10,000 10,000 10,000 50,000
Add larger, new trees to the park systems.
Tom Anderson Trail - Bench
Additions 26-45001-03 5,000 0 0 0 0 5,000
Park Dedication Funds 5,000 5,000
Addition of more benches in the Tom Anderson Trail Corridor as identified by the Park Dedication Study.
Skate Park - Expansion &
Improvements 26-45001-04 250,000 0 0 0 0 250,000
Park Dedication Funds 250,000 250,000
The skate park is heavily used and is due for an upgrade. The Park Dedication Study has already identified it for expansion. Much of its current equipment is nearing the end of its life and needs to be replaced soon. We plan to
not only expand the skate park but also replace the aging wood and steel ramps with more durable, maintenance-free concrete and steel features. These permanent concrete features can be built on the existing pad during the
expansion.
Sunshine Park - Parking Lot Lights
West & South 26-45001-05 30,000 0 0 0 0 30,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 183
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.
Hawkridge Park - Pave Parking Lot 26-45001-06 150,000 0 0 0 0 150,000
Park Dedication Funds 150,000 150,000
Pave the 70,000 sq ft gravel parking lot at Hawkridge Park.
Oakview Park - Improvements 26-45001-07 20,000 0 0 0 0 20,000
Park Dedication Funds 20,000 20,000
Addition of irrigation and trees to Oakview Park as identified in the Park Dedication Study.
Timber Trails Park - Pave Parking Lot 27-45001-04 0 52,000 0 0 0 52,000
Park Dedication Funds 52,000 52,000
Pave the gravel 14,000 sq ft parking lot at Timber Trails Park including the addition of two security lights.
Kelsey Round Lake Park - Master
Plan Additions 27-45001-05 0 230,000 0 0 0 230,000
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.
Pleasant Oaks Park - Add Sidewalk 27-45001-06 0 4,000 0 0 0 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 2027 and this would be
installed with that project.
Meadowood North Park - TBD 27-45001-07 0 50,000 0 0 0 50,000
Park Dedication Funds 50,000 50,000
Improvements TBD to Meadowood North once the neighborhood survey is completed.
Northwoods West Park - Pave
Parking Lot 28-45001-03 0 0 75,000 0 0 75,000
Park Dedication Funds 75,000 75,000
Paving the gravel parking lot at Northwoods West Park tennis and pickleball courts.
Northwoods West Park - Add
Medium Shelter 28-45001-04 0 0 50,000 0 0 50,000
Park Dedication Funds 50,000 50,000
Addition of a medium shelter near the tennis and pickle ball courts.
Pine Hills North Park - Master Plan
Additions 28-45001-05 0 0 150,000 0 0 150,000
Park Dedication Funds 150,000 150,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 184
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 2026 or 2027.
Zone D Projects TBD 28-45001-06 0 0 100,000 0 0 100,000
Park Dedication Funds 100,000 100,000
Zone D park improvement projects TBD.
Zone C Improvements TBD 29-45001-03 0 0 0 150,000 0 150,000
Park Dedication Funds 150,000 150,000
Zone C park improvement projects TBD.
Parking Lot Improvements TBD 29-45001-04 0 0 0 100,000 0 100,000
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 A Improvements TBD 30-45001-03 0 0 0 0 150,000 150,000
Park Dedication Funds 150,000 150,000
Zone A park improvement projects TBD.
Park & Rec - Projects Total 490,000 371,000 410,000 285,000 185,000 1,741,000
Sanitary Sewer
Rural Reserve - Area Analysis &
Sanitary Sewer 26-48200-01 3,850,000 500,000 0 550,000 0 4,900,000
Assessments 1,000,000 1,000,000
Sewer Trunk Fund 2,850,000 500,000 550,000 3,900,000
In 2026 complete the evaluation of future development in the rural reserve related to development planning, traffic impact, water & sanitary sewer system analysis, and storm water management & surface water (budgeted in
2024). 2026 includes the design and 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 the west side of Coon Creek then cross South Coon Creek Drive then north into the Rural Reserve first phase of development. It is anticipated that the extension further north will be constructed when
further development occurs, or as the market demands. It is anticipated that the sewer area and connection charges will eventually cover the cost of the sewer line w/ city participation in pipe over-sizing and additional depth
charges.
Replacement - Locating Equipment 26-48200-02 7,000 0 0 0 0 7,000
Sanitary Sewer Fund 3,500 3,500
Water Fund 3,500 3,500
The locating equipment used to find and mark underground utilities is no longer serviceable with parts and repairs soon to be unavailable.
Replacement - Televising Trailer
Main Cable 27-48002-03 0 8,500 0 0 0 8,500
Sanitary Sewer Fund 8,500 8,500
Replace the main cable for the televising camera.
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 185
Replacement - One Ton Truck w/
Plow #13-094 27-48200-01 0 110,000 0 0 0 110,000
Sanitary Sewer Fund 110,000 110,000
Replace unit #13-094, a 2013 Chevrolet 3500 truck w/ plow and 98,857 miles.
Replacement - Sanitary Sewer Lift
Station Pump 27-48200-02 0 60,000 0 0 0 60,000
Sanitary Sewer Fund 60,000 60,000
Pump replacement at sanitary sewer lift stations.
Crooked Lake Blvd Sanitary Sewer
Lining Project 27-48200-04 0 1,000,000 0 0 0 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.
Crosstown Trunk Line - Clean &
Assess 27-48200-05 0 80,000 0 0 0 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.
Replacement - 1/2 Ton Truck #13-091 28-48200-01 0 0 70,000 0 0 70,000
Sanitary Sewer Fund 70,000 70,000
Replace unit #13-091, a 2013 GMC 1/2 ton ext cab pickup with tool boxes and 114,730 miles.
Sanitary Sewer Total 3,857,000 1,758,500 70,000 550,000 0 6,235,500
Storm Sewer
Storm Sewer Improvements 26-48300-01 74,000 75,000 76,000 77,000 78,000 380,000
Storm Sewer Fund 74,000 75,000 76,000 77,000 78,000 380,000
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.
Replacement - Street Sweeper #06-
171 26-48300-02 370,000 0 0 0 0 370,000
Storm Sewer Fund 370,000 370,000
Replace unit #171, a 2006 Tymco street sweeper with 59,468 miles.
Replacement - Compact Excavator
#97-96 29-48300-01 0 0 0 57,000 0 57,000
Storm Sewer Fund 57,000 57,000
Replace unit #96, a 1997 Takeuchi mini excavator with 1,219 hours.
Storm Sewer Total 444,000 75,000 76,000 134,000 78,000 807,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 186
Streets - Equipment
Replacement - Dump Truck w/ Snow
removal #00-198 26-43100-01 350,000 0 0 0 0 350,000
Capital Equipment Reserve 350,000 350,000
Replace unit #198, a 2000 Sterling dump truck w/ snow removal equipment and 61,774 miles.
Replacement - 1 Ton Truck w/ Plow
#13-102 27-43100-01 0 110,000 0 0 0 110,000
Capital Equipment Reserve 110,000 110,000
Replace unit #13-102, a 2013 Chevrolet 3500 truck w/ plow and 58,183 miles.
Replacement - Chevrolet Colorado
#04-101 27-43100-02 0 60,000 0 0 0 60,000
Capital Equipment Reserve 60,000 60,000
Replace unit #101, a 2004 Chevrolet Colorado with 142,848 miles.
Replacement - Dump Truck w/ Snow
removal #00-201 28-43100-01 0 0 370,000 0 0 370,000
Capital Equipment Reserve 370,000 370,000
Replace unit #201, a 2000 Sterling dump truck w/ snow removal equipment and 64,032 miles.
Replacement - Dump Truck w/Snow
removal #02-202 28-43100-02 0 0 370,000 0 0 370,000
Capital Equipment Reserve 370,000 370,000
Replace unit #202, a 2002 Sterling dump truck w/ snow removal equipment and 63,892 miles.
Replacement - Front End Loader #11-
111 28-43100-03 0 0 250,000 0 0 250,000
Capital Equipment Reserve 250,000 250,000
Replace unit #11-111, a 2012 John Deere 524 front end loader with 4,849 hours.
Replacement - Aerial bucket truck
#00-139 29-43100-01 0 0 0 200,000 0 200,000
Capital Equipment Reserve 200,000 200,000
Replace unit #00-139, a 2001 Ford F550 aerial bucket truck with 29,992 miles.
Replacement - Toolcat #04-70 29-43100-02 0 0 0 100,000 0 100,000
Capital Equipment Reserve 100,000 100,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 187
Replace unit #70, a 2004 Bobcat Toolcat with 2,457 hours.
Replacement - Dump Truck w/Snow
removal #02-203 30-43100-01 0 0 0 0 390,000 390,000
Capital Equipment Reserve 390,000 390,000
Replace unit #203, a 2002 Sterling dump truck w/ snow removal equipment and 71,582 miles.
Replacement - Dump Truck w/Snow
removal #06-204 30-43100-02 0 0 0 0 390,000 390,000
Capital Equipment Reserve 390,000 390,000
Replace unit #204, a 2006 Sterling L8500 dump truck w/ snow removal equipment and 37,481 miles.
Streets - Equipment Total 350,000 170,000 990,000 300,000 780,000 2,590,000
Streets - Roadways
Annual Street Crack Seal Project 26-49300-01 160,000 160,000 160,000 160,000 160,000 800,000
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 26-49300-02 100,000 102,000 104,000 106,000 108,000 520,000
Road & Bridge Funds 100,000 102,000 104,000 106,000 108,000 520,000
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 26-49300-03 120,000 120,000 120,000 120,000 120,000 600,000
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 26-49300-04 5,065,000 8,730,000 4,725,000 4,785,000 4,620,000 27,925,000
Assessments 1,266,250 2,182,500 1,181,250 1,196,250 1,155,000 6,981,250
G.O. Bond 3,798,750 4,000,000 3,000,000 10,798,750
Road & Bridge Funds 2,547,500 543,750 3,588,750 3,465,000 10,145,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 188
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.
2026: East Round Lake Estates, Kadlec Estates ($1,440,000); Nightingale Preserve, Wittington Ridge ($1,480,000); Nightingale Estates, 2nd, 3rd ($1,060,000); Leeman Lake Estates ($265,000); Creekridge Estates north of S Coon
Creek Dr ($820,000)
2027:159Ln West of Nightingale, Quinn St, Swallow St, and Uplander St South of 161st Ave, Nightingale Ridge ($2,530,000) Development South of Bunker Lake Blvd, West of Crooked Lake, Chapmans 1st-6th, Woodland Terrace
1st-5th, Weises 1st, 2nd, Boulder Estates ($6,200,000);
2028: Smith's Green Acres Area (North and south of plat), Northwoods Add., Northwoods Add. Plat 2, Creekhaven, Donohue Creekside Addition, Cunningham Add. ($4,725,000);
2029: Red Oaks Manor Add. 2nd, 3rd ($1,795,000); Kensington Estates, 2nd-7th, Shady Knoll Add. ($2,425,000); Woodridge Acres, Creekside Estates & 2nd, The Oaks ($565,000)
2030: Bluebird St from Ward Lk Dr to 181st Ave ($310,000); Woodland Meadows 2nd ($1,250,000); Holmberg Add, Deerwood Estates ($850,000); Prairie Oaks ($250,000); Nordeen Add. ($1,165,000); Meadowlark Heights ($795,000)
Street Mill & Overlay 26-49300-06 85,000 885,000 1,265,000 1,245,000 1,100,000 4,580,000
Assessments 21,250 221,250 316,250 311,250 275,000 1,145,000
Road & Bridge Funds 63,750 663,750 948,750 933,750 825,000 3,435,000
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 identified 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.
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, 1st, 2nd, 3rd, 4th ($290,000)
2030: Woodland Meadows and Brook Crossing ($1,100,000)
Gravel Road Improvements 26-49300-07 23,000 24,000 25,000 26,000 27,000 125,000
Road & Bridge Funds 23,000 24,000 25,000 26,000 27,000 125,000
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 26-49300-08 0 1,220,000 170,000 0 1,550,000 2,940,000
Assessments 305,000 42,500 387,500 735,000
Municipal State Aid Funds 915,000 127,500 1,162,500 2,205,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 189
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 identified are listed below.
2027: 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 TBD
2030: Ward Lake Drive Crosstown Blvd to Hanson Blvd (minus gravel section) ($1,550,000)
Intersection Upgrades 26-49300-09 1,900,000 0 0 300,000 2,000,000 4,200,000
Assessments 750,000 750,000
County Reimbursement 200,000 200,000
Federal Funds 1,600,000 1,600,000
Municipal State Aid Funds 1,150,000 300,000 200,000 1,650,000
The following projects identified for improvements and the timing for such project is dependent on funding.
2026 - Roundabout Construction at Crosstown Blvd and Bluebird Street ($1,500,000). Funding has been received from the developer of the Crosstown Landing Development for a 50/50 cost share with the City up to a maximum
of $750,000.
2026 - Roundabout Construction at Crosstown Blvd and 161st Avenue ($2,000,000). This is a Anoka County project in which HSIP funding has been received. The City's portion based on the standard cost share agreement is
$200,000.
2026 - Roundabout Construction at 7th Avenue and 165th Avenue ($2,000,000). This is a also a Anoka County project in which HSIP funding has been received. The City's portion based on the standard cost share agreement is
$200,000.
2029 - Roundabout Design at Crosstown Blvd & Crosstown Drive ($300,000).
2030 - Roundabout Construction at Crosstown Blvd & Crosstown Drive ($2,000,000).
Street Full Depth Reclamation 26-49300-10 2,690,000 265,000 2,750,000 4,420,000 565,000 10,690,000
Assessments 672,500 66,250 687,500 1,105,000 140,000 2,671,250
Road & Bridge Funds 2,017,500 198,750 2,062,500 3,315,000 425,000 8,018,750
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 190
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 identified are listed below.
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)
2030: Forest Meadows area including Xeon St. ($565,000)
Pavement Rejuvenator Application 26-49300-11 175,000 175,000 175,000 175,000 175,000 875,000
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.
Municipal State Aid Routes/Mill &
Overlay 27-49300-05 0 267,000 0 140,000 0 407,000
Assessments 66,750 10,000 76,750
Municipal State Aid Funds 200,250 130,000 330,250
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 identified 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.
2027: 157th Avenue - Prairie Road to University Ave ($267,000)
2029: 133rd St - Crosstown Blvd to Hanson Blvd ($140,000) Assessments will be calculated at the time of project.
Streets - Roadways Total 10,318,000 11,948,000 9,494,000 11,477,000 10,425,000 53,662,000
Water
Replacement - Residential Meters 26-48100-01 100,000 100,000 100,000 100,000 100,000 500,000
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 26-48100-02 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.
Security Cameras at Towers and Well
Houses 26-48100-03 20,000 0 0 0 0 20,000
Water Fund 20,000 20,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 191
Adding security cameras to monitor the building and property at towers and well houses.
Replacement - WTP Valve Actuators 26-48100-05 95,000 0 0 0 0 95,000
Water Fund 95,000 95,000
Replacement of 6 - 24" Backwash Valve Actuators.
WTP Backwash Pump Maintenance 26-48100-06 120,000 0 0 0 0 120,000
Water Fund 120,000 120,000
The backwash pump at the Water Treatment Plant is the main component in the water treatment process that cleans the filters when they become dirty.
Replacement - WTP Effluent Valve
Control 26-48100-08 40,000 0 0 0 0 40,000
Water Fund 40,000 40,000
Water treatment plant effluent valve control replacement. Used for back washing treatment plant filters.
Replacement - WTP Make Up Air Unit 27-48100-01 0 35,000 0 0 0 35,000
Water Fund 35,000 35,000
Replace the make up air unit in the storage and parking garage at the WTP.
Replacement - WTP HSP Room A/C 27-48100-02 0 80,000 0 0 0 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 - Radiant Heaters WTP
Garage 27-48100-03 0 20,000 0 0 0 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.
Construct Water Treatment Plant #2 28-48100-01 0 0 10,000,000 0 0 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 0 0 20,000 0 0 20,000
Water Fund 20,000 20,000
The water treatment plant air compressor is used to operate all of the process valves in the plant.
Rehabilitation of Wells 28-48100-03 0 0 90,000 100,000 100,000 290,000
Water Fund 90,000 100,000 100,000 290,000
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.
Replacement - Well #3 Air
Handler/Conditioner 28-48100-04 0 0 17,000 0 0 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.
Construct Clearwell at WTP 29-48100-01 0 0 0 3,300,000 0 3,300,000
Water Revenue Bonds 3,300,000 3,300,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 192
Construct a 2 million gallon clearwell adjacent to the water treatment plant.
Demolish 500,000 Gallon Water
Tower 29-48100-02 0 0 0 350,000 0 350,000
Water Trunk Fund 350,000 350,000
Demolish the existing 500,000 gallon water tower located on the west side of town.
Construct Well #10 30-48100-01 0 0 0 0 450,000 450,000
Water Trunk Fund 450,000 450,000
Construct well #10 in Shadowbrook 2nd Addition on an existing city-owned lot to provide municipal water due to the increased demand.
WTP High Service Pump
Maintenance 30-48100-02 0 0 0 0 70,000 70,000
Water Fund 70,000 70,000
Service the high service motors and pumps in the WTP.
Water Total 425,000 285,000 10,277,000 3,900,000 770,000 15,657,000
GRAND TOTAL 19,709,000 16,799,500 23,767,500 17,581,000 13,727,000 91,584,000
Department Project #2026 2027 2028 2029 2030 Total
Produced Using Plan-It CIP Software 193
Outstanding Outstanding Outstanding
Date of Rate of at at at
Description Issue Maturity Interest Issued 12/31/2024 Retired Issued 12/31/2025 Retired Issued 12/31/2026
Governmental Activities
General Obligation Abatement Bonds
2012C G.O. Abatement Bonds 12/27/2012 2/1/2031 1.00-3.00%17,315,000 7,660,000 (1,005,000) - 6,655,000 (1,030,000) - 5,625,000
2019A G.O. Abatement Bonds 8/1/2019 2/1/2040 3.00 - 5.00%15,770,000 13,820,000 (630,000) - 13,190,000 (660,000) - 12,530,000
21,480,000 (1,635,000) - 19,845,000 (1,690,000) - 18,155,000
Certificates of Indebtedness/Capital Notes
2021A G.O. Equipment Bonds 12/28/2021 2/1/2026 2.00%630,000 325,000 (160,000) - 165,000 (165,000) - -
2024A G.O. Equipment Bonds 12/30/2024 2/1/2028 5.00%1,155,000 1,155,000 - - 1,155,000 (365,000) - 790,000
Subtotal - Certificates of Indebtedness 1,480,000 (160,000) - 1,320,000 (530,000) - 790,000
Capital Improvement Bonds
2018A G.O. Capital Improvement Plan Bonds 12/27/2018 2/1/2044 3.00-5.00%10,000,000 9,070,000 (315,000) - 8,755,000 (335,000) - 8,420,000
Street Reconstruction Bonds
2021A G.O. Street Reconstruction Bonds 12/28/2021 2/1/2030 1.00-2.00%7,135,000 5,455,000 (870,000) - 4,585,000 (885,000) - 3,700,000
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 (565,000) - 6,875,000
12,895,000 (870,000) - 12,025,000 (1,450,000) - 10,575,000
TOTALS 44,925,000$ (2,980,000)$ -$ 41,945,000$ (4,005,000)$ -$ 37,940,000$
2025 2026
CITY OF ANDOVER
Summary of Outstanding Bond Issues
2025 - 2026
194
Total Less
2026 2027 2028 2029 2030 2031-2035 2036-2040 2041-2044 Payments Interest Total
Governmental Activities
General Obligation Abatement Bonds
2012C G.O. Abatement Bonds 1,208,275$ 1,205,250$ 1,205,147$ 1,212,675$ 1,213,400$ 1,218,000$ 7,262,747$ (607,747)$ 6,655,000$
2019A G.O. Abatement Bonds 1,104,650 1,105,775 1,100,275 1,106,850 1,105,650 5,533,525 5,524,050 - 16,580,775 (3,390,775) 13,190,000
2,312,925 2,311,025 2,305,422 2,319,525 2,319,050 6,751,525 5,524,050 - 23,843,522 (3,998,522) 19,845,000
Certificates of Indebtedness
2021A G.O. Equipment Bonds 166,650 166,650 (1,650) 165,000
20214 G.O. Equipment Bonds 413,625 414,875 415,125 1,243,625 (88,625) 1,155,000
580,275 414,875 415,125 - - - - - 1,410,275 (90,275) 1,320,000
Capital Improvement Bonds
2018A G.O. CIP Bonds 622,631 620,506 626,206 624,956 623,406 3,111,500 3,102,628 2,480,463 11,812,297 (3,057,297) 8,755,000
Street Reconstruction Bonds
2021A G.O. Street Recon Bonds 942,710 944,810 951,135 946,395 945,640 4,730,690 (145,690) 4,585,000
2024A G.O. Street Recon Bonds 904,925 935,175 933,175 934,550 929,300 4,655,900 9,293,025 (1,853,025) 7,440,000
1,847,635 1,879,985 1,884,310 1,880,945 1,874,940 4,655,900 - - 14,023,715 (1,998,715) 12,025,000
5,363,466$ 5,226,391$ 5,231,063$ 4,825,426$ 4,817,396$ 14,518,925$ 8,626,678$ 2,480,463$ 51,089,809$ (9,144,809)$ 41,945,000$
CITY OF ANDOVER
Debt Service Summary
195
Estimated Taxable Market Value (Note A)5,221,510,107$
Debt Limit: 3% of Market Value 156,645,303
Total Bonded Debt 41,945,000$
Less:
Non-Tax Levy Supported Debt: (Note B)
G.O. Revenue Bonds -
41,945,000
Less:
Balance Available in Related Debt Service Funds 5,104,137
Net Debt Applicable 36,840,863
Legal Debt Margin 119,804,440$
Note A:Source: Anoka County Property Tax Division
Note B:The computation on legal debt margin only includes debt supported by a tax levy.
CITY OF ANDOVER
Computation of Legal Debt Margin
December 31, 2025
Total Debt Applicable
(Unaudited)
196
CITY OF ANDOVER, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Total Market Value Collections In
Tax Tax Homestead Total Percentage Subsequent Percentage
Year Levy Levy Credit Collected of Levy Years Amount of Levy
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 11,938,555 11,858,376 3,545 11,861,921 99.36%17,470 11,879,391 99.50%
2018 12,416,357 12,342,648 2,824 12,345,472 99.43%5,867 12,351,339 99.48%
2019 13,103,487 12,974,413 3,960 12,978,373 99.05%42,672 13,021,045 99.37%
2020 14,479,586 14,391,252 4,128 14,395,380 99.42%31,162 14,426,542 99.63%
2021 14,913,945 14,853,700 3,578 14,857,278 99.62%26,260 14,883,538 99.80%
2022 16,107,254 16,029,549 4,417 16,033,966 99.55%21,798 16,055,764 99.68%
2023 17,073,084 16,980,523 3,682 16,984,205 99.48%24,443 17,008,648 99.62%
2024 18,097,274 17,988,596 4,662 17,993,258 99.43%
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
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%295,781 108.48%
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 91.83%
2022 269,026 483,558 179.74%6,925 490,483 182.32%278,861 103.66%
2023 324,879 580,154 178.58%3,856 584,010 179.76%298,692 91.94%
2024 442,819 712,440 160.89%7,664 720,104 162.62%350,971 79.26%
Note: (1) Only includes assessments certified to Anoka County.
Total Collections to Date
Collected Within the Fiscal Year of Levy
Not Available
197
CITY OF ANDOVER, MINNESOTA
PRINCIPAL TAXPAYERS
Current Year and Ten Years Ago
(Unaudited)
Net Percentage of Net Percentage of
Tax Total City Tax Total City
Capacity Rank Tax Capacity Capacity Rank Tax Capacity
Minnegasco, Inc.348,206$ 1 0.67%237,504$ 1 0.88%
Presbyterian Homes of Andover 287,403 2 0.55%160,143 4 0.60%
Target Corporation 245,684 3 0.47%154,668 6 0.58%
Great River Energy 234,476 4 0.45%173,276 3 0.65%
Wal-Mart 231,084 5 0.44%
PC Arbor Oaks LLC 208,188 6 0.40%
Individual 184,850 7 0.35%
Andover Station 2016 LLC 173,760 8 0.33%
DST Properties LLC 155,106 9 0.30%103,640 8 0.39%
Measurement Specialties 138,428 10 0.26%
Connexus Energy 193,514 2 0.72%
Walmart Real Estate Business Trust 160,096 5 0.60%
Andover Limited Partnership 124,754 7 0.46%
Andover Station LLC 102,150 9 0.38%
Columbia Park Properties 77,696 10 0.29%
Total 2,207,185$ 4.22%1,487,441$ 5.55%
Net Tax Capacity 52,292,926$ 26,847,273$
Source: Anoka County Property Tax Division
CITY OF ANDOVER, MINNESOTA
ESTIMATED MARKET VALUES AND NEW CONSTRUCTION
Last Ten Fiscal Years
(Unaudited)
Commercial /
Year Industrial (1)Residential Total Permits Value Permits Value
2015 173,717,700$ 2,435,950,500$ 2,609,668,200$ 16 2,513,609$ 74 19,631,775$
2016 181,926,900 2,530,046,700 2,711,973,600 7 14,009,200 111 28,893,036
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 235,287,000 3,450,673,800 3,685,960,800 - - 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 21,454,268
2024 300,481,900 4,729,313,300 5,029,795,200 5 2,400,000 101 35,124,454
Note: (1) Also includes agricultural, public utility, railroad operating property, and personal property.
Commercial / Industrial Residential
Taxpayers
2024 2015
Estimated Market Values New Construction
198
CITY OF ANDOVER, MINNESOTA
DEMOGRAPHICS
(Unaudited)
Percent
of Change
2010 2020 2024 Est (1)2010 - 2020
Population 30,598 32,601 32,596 6.55%
Households 9,811 10,782 11,091 9.90%
Household Size (Population/Household)3.12 3.02 2.94 -3.05%
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
U.S. Census
POPULATION DEMOGRAPHICS (2020 U.S. CENSUS)
199
CITY OF ANDOVER, MINNESOTA
MISCELLANEOUS STATISTICAL DATA
(Unaudited)
Date incorporated 1974
Form of government Plan A
Miles of streets
City 207
County 43
Storm sewer (miles)87
Water main (miles)130
Sanitary sewer (miles)106
Parks:
Number 68
Developed acreage 631
Trails (miles)41
Acreage:
Developed 9,558
Undeveloped 12,734
Number of
Firm Type of Business / Product Employees
Anoka - Hennepin ISD No 11 Elementary and secondary education 736
Walmart Retail 335
Anoka County Sheriff's Office County government and services 250
Kottkes' Bus Service Transportation 225
Target Retail 200
YMCA Youth organization and fitness center 192
Fairview Andover Clinic Healthcare 125
Anoka County Highway Department County government and services 122
Legacy Christian Academy Elementary and secondary education 100
Bunker Hills Regional Park / Activity Center County government and services 100
Largest Employers in the City
200
GLOSSARY OF TERMS
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.
201
BOND: 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.
BUDGET 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
202
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.
203
GENERAL OBLIGATION BONDS: 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 BONDS: 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.
GFOA: Government Finance Officers Association
G.I.S.: Geographic Information System
GOAL: The intention of an activity or a plan.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): 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 (HACA): 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.
204
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 (LGA): 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 (LPA): 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.
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MODIFIED ACCRUAL BASIS: 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.
PERA: Public Employees Retirement Association
PERFORMANCE MEASURES: A quantitative or qualitative measurement of activity.
PERSONAL SERVICES: 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.
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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.
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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 CAPACITY RATE: 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.
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