HomeMy WebLinkAboutCC - June 1, 2010ANLb 6 W
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN.US
Regular City Council Meeting — Tuesday, June 1, 2010
Call to Order — 7:00 p.m.
Pledge of Allegiance
Special Presentation — CenterPoint Energy Community Partnership Grant
Resident Forum
Agenda Approval
1. Approval of Minutes (5/18/10 Regular Meeting, 5/18/10 Closed Meeting)
Consent Items
2. Approve Payment of Claims — Finance
3. Approve Plans & Specs /Order Advertisement for Bids /09- 37/138'' Avenue NW & Xavis Street NW/Water
Main Extension - Engineering
4. Approve Plans & Specs /Order Advertisement for Bids /10 -12 /Public Works Salt Storage Facility
Engineering
5. Approve Used Vehicle Sales License /Andover Auto Care /16191 Round Lake Boulevard NW - Planning
6. Order Improvement/Approve Plans /09- 18/Hawkridge Park Reconstruction — Engineering
7. Authorize Sophies South Park Improvements — Engineering
8. Amend Fee Ordinance - Building
Discussion Items
9. Year Ended December 31, 2009 Audit Presentation /HLB Tautges Redpath -Administration
10. Discuss Petition/No Parking Request/148h Lane NW - Engineering
Staff Items
11. Schedule June Council Workshop - Administration
12. Administrator's Report -Administration
Mayor /Council Input
Closed Session — 2010 Public Works Union Contract Review/Discussion
Closed Session — Open Space Land Purchase Negotiations — White Pine Wilderness
Adjournment
C I T Y O F
NDOVE
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: Mayor and Councilmembers
FROM: Jim Dickinson, City Administrator
SUBJECT: Special Presentation — CenterPoint Energy
DATE: June 1, 2010
Kyle Marty from CenterPoint Energy will be present at the meeting to present to the City
Council a CenterPoint Energy Community Partnership Grant to be used for the purchase of fire
department pagers.
submitted,
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
P
TO: Mayor and City Council \\
CC: Jim Dickinson, City Administrator (
FROM: Michelle Hartner, Deputy City Clerk
SUBJECT: Approval of Minutes
DATE: June 1, 2010
INTRODUCTION
The following minutes were provided by Timesaver and Staff for City Council approval:
May 18, 2010 Regular Meeting
May 18, 2010 Closed Meeting
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The City Council is requested to approve the above minutes.
Respectfully submitted,
Michelle Hartner
Deputy City Clerk
Attach: Minutes
G)
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REGULAR ANDOVER CITY COUNCIL MEETING — MAY 18, 2010
MINUTES
The Regular Bi- Monthly Meeting of the Andover City Council was called to order by Mayor Mike
Gamache, May 18, 2010, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Councilmembers present: Sheri Bukkila, Don Jacobson, Mike Knight, Julie Trude
Councilmember absent: None
Also present: City Attorney, Scott Baumgartner
Director of Public Works /City Engineer, Dave Berkowitz
City Administrator, Jim Dickinson
City Planner, Courtney Bednarz
Others
PLEDGE OFALLEGL4NCE
RESIDENT FORUM
Mr. Jeffrey Johnson, 16729 Crocus Street, stated he was at the meeting because he has received
multiple letters from the City regarding a complaint received regarding the operation of dirt bikes,
motorcycles and ATV's on his property. The first letter noted the use is not a violation because the
property is located in R -1 zoning. He stated a second letter indicated the first letter sent was in error
and the City was requiring him to immediately discontinue the use of such vehicles on his property.
He stated he then talked to the City Planner who determined his property was close enough to 2.5
acres to satisfy the requirement but a review by the City Attorney and City Administrator determined
that the property was technically less than 2.5 acres in size and the operation of highway motor
vehicles deemed to be prohibitive.
Mr. Johnson stated he went to his neighbors and got a signed petition and he was requesting an
allowance or an ordinance change.
Councilmember Jacobson indicated they have item 11 on the agenda where they have the City Code
amendments and in there it talks about 2.5 acres lots and he thought there will need to be a revision
to that verbiage and that if they change that it will affect this resident and he suggested they move
this to that item and handle it there. Councilmember Trude asked if this would be the case because
she thought this was talking about the use of the property and item 11 talks about what can be parked
in the driveway. She did not think these were the same.
City Administrator Dickinson stated the code revision they are talking about in item 11 has to do
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Regular Andover City Council Meeting
Minutes —May 18, 2010
Page 2
with parking. Mr. Johnson is talking about a different kind of use and if the Council wanted to
address this he would suggest Council do this as a part of a discussion of the entire zoning code.
They can talk about the concept of the intent of a 2.5 acre lot but this use should not be included in
item 11.
Councilmember Jacobson stated Mr. Johnson's concern is that he does not technically have 2.5
acres, he is just shy of that and if they change the definition slightly that should take care of his
concern. City Attorney Baumgartner stated it depends on the definition because definitions for each
particular section of the ordinance can deal with different things. He thought in order to encompass
what they are talking about on the agenda and what Mr. Johnson is talking about is much broader
than what is before the Council and that his issue would not be dealt with in item 11 because they are
not talking about his use.
Mr. Dickinson stated if they discuss this issue under item 11 and at the end of that discussion if staff
is directed to carry that same theme throughout the rest of the zoning code that would be the directive
he would be looking for. Councilmember Jacobson stated that was what he was intending to do.
Mayor Gamache apologized for the mix up with the letters Mr. Johnson received. Mr. Johnson
indicated he believed the property to be 2.5 acres when he purchased the property 18 years ago.
Mayor Gamache indicated the property size was probably decreased due to the curvature of the road
and other properties are the same way. Mr. Johnson agreed.
Mr. Dickinson reviewed a map of the area and the lot sizes with the Council.
Councilmember Trude stated they would not make a big policy change this evening because
someone showed up at a meeting and the Council voted on it, which is what concerned here. Mr.
Dickinson suggested they can use the information they have for the other code areas and they would
advertise that and put it through the process with a public hearing.
Mayor Gamache stated with the information Mr. Johnson has provided it appears the Council needs
to have some discussion as to what type of a fix they can make. He stated after talking with the City
Engineer these types of irregularities that happen with the plats years ago do not happened anymore.
Mr. Dickinson asked if Mr. Johnson wanted to enter the petition into public record. Mr. Johnson
indicated he would.
Councilmember Knight asked if there was a provision or isn't there some way that an inadvertent
mistake was made with the size of the lot. City Attorney Baumgartner stated there is language they
can use to correct this but he wants sure if it would just be an inadvertent mistake.
Councilmember Trude noted there have been other instances in the City where they have upheld the
City Code regarding minimum requirements for acreage and have upheld the code in those instances.
Mrs. Shannon Schmegg, 2731 167th Lane, stated she is Mr. Johnson's neighbor to the north and she
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Regular Andover City Council Meeting
Minutes —May 18, 2010
Page 3
was the one who made the complaint and she did this for her son who has special needs. She
indicated her son was afraid of the noise even though he can see the source. She explained she had
photos showing Mr. Johnson had more than one ATV and documentation proving her son is autistic.
She stated this type of issue has been dealt with before in the City and she was prepared to follow
this to the end and make sure the noise stops because Mr. Johnson does not have 2.5 acres. She
noted there is set precedence and if the Council is going to change for one, it needs to be changed for
all.
Photos of Mr. Johnson's yard were shown by Mrs. Schmegg.
Mr. Ken Madden, 16476 Bittersweet Court, stated he used to live across the street from Mr. Johnson
and the entire neighborhood has tracks to ride ATV's on so Mr. Johnson is not the only one. As far
as he could see Mr. Johnson does not have a race track on his property. This is a neighborhood that
almost everyone has an ATV that they ride around on so Mr. Johnson is not the only one.
AGENDA APPROVAL
Add Land Negotiations for PID number 29- 32 -24 -44 -0022 to the Closed Session.
Councilmember Trude would like to move Item 6 to discussion items for a couple questions.
Motion by Jacobson, Seconded by Knight, to approve the Agenda as amended above. Motion
carried unanimously.
APPROVAL OFMINUTES
May 4, 2010, Regular Meeting: Correct as amended.
Councilmember Trude stated on page 3, line 10, needs a word " Councilmember Trude asked that a
traffic control change sign be used ". On page 4 she needed to correct the comments she made at the
beginning of line 13: " Councilmember Trude commented on the topic of 2.5 acre minimum, she
thought they should not just list Rl, R2, R3 areas because some areas in the northwest portion of the
City have less than one acre and she did not want to see forty-five foot RV's in those backyards."
Motion by Trude, Seconded by Jacobson, to approve the minutes as indicated above. Motion carried
unanimously.
CONSENT ITEMS
Item 2 Approval of Claims
Item 3 Order Improvement/Order Plans & Spec/09- 37/138' Avenue NW & Xavis Street
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Regular Andover City Council Meeting
Minutes — May 18, 2010
Page 4
NW /Water Main Extension
Item 4 Order Improvement/Order Plans & Spec /10 -12 /Public Works Salt Storage Facility
Item 5 Declare Surplus Equipment/Inventory
Item 7 Approve Debt Policy Updates
Item 8 Approve Refuse/Recycler Hauler Licenses
Item 9 Assistance to Firefighters Grant Application
Motion by Jacobson, Seconded by Bukkila, approval of the Consent Agenda as read. Motion carried
unanimously.
ANOKA COUNTYSHERIFF 'SDEPARTMENTMONTHLYREPORT
Captain Wells from the Anoka County Sheriff's Department updated the Council on law
enforcement activities in the City.
CONSIDER CITY CODE AMENDMENTIEXTERIOR STORAGE OF COMMERCL4L
VEHICLES & OTHER STORAGE ITEMS
City Planner Bednarz explained the City Council continued to discuss exterior storage of commercial
vehicles, recreational vehicles and other items at the May 4h City Council meeting. The Council has
provided feedback regarding ten different types of commercial vehicles. The direction given was to
bring forward a final draft amendment to the City Code for review at the meeting.
Mr. Bednarz reviewed the information with the Council.
Mr. Bednarz stated on page 3, they are proposing to add "Landscaping to Building Materials" and
giving a limitation of 6 months for building or landscaping materials to be on residential property
before a project should be completed.
Councilmember Trude wondered if this will be confusing. Councilmember Bukkila stated she was
concerned about what would fall into this category. Mr. Bednarz stated they have seen landscaping
block or a pile of rocks on property that has not been used. Councilmember Bukkila indicated she
did not like this. Mayor Gamache thought if someone had landscaping material that was going to be
used for something a six month period seemed to be a long enough time to get the project completed.
Councilmember Trude thought the definition needed to be changed because it is too broad.
Mr. Dickinson reviewed some examples with the Council.
City Attorney Baumgartner stated he understood Councilmember Trude's concerns and thought they
could change the definition to: "building or landscaping materials to be incorporated into a project on
the premises of a property with an active building permit ".
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Regular Andover City Council Meeting
Minutes —May 18, 2010
Page 5
Councilmember Jacobson stated if someone is doing a landscaping project the resident does not
necessarily need to get a building permit. He suggested they review the rest of this item and come
back to this one.
Councilmember Trude stated this is a wordsmith item and the first sentence before the comma
should have to do with building materials and then the second part would have to do with the
landscaping materials to be incorporated into a project on the premises of the property with an active
remodeling or beautification project. The building permit applies when they do a remodel project.
Mr. Bednarz continued to review the changes to the code amendment with the Council.
Councilmember Jacobson stated under item B, it states "All districts, except residential districts may
require a conditional use permit if something is hazardous to the health, safety, general welfare..." he
realized this was in there now and not something new but he thought on Ward Lake Drive someone
wanted to refill cartridges and use gun powder and the Council said no and he wondered if in an R -4
someone wanted to something in their basement that could be harmful, the way it says, the City
cannot do anything about it because it says "all districts except residential districts ". He wondered if
they wanted to take out "except" from the statement so they could still have some control and
protection.
Mayor Gamache thought item B only regarded exterior storage so he did not know if it would apply
to someone doing something in their basement. Mr. Bednarz noted this item only applies to exterior
storage and allows under number 1 under the general health, safety, welfare, they could require a
commercial or industrial business to apply for a CUP and put reasonable conditions on them to do
exterior storage with residential districts excluded there is a separate section that provides what they
can do for exterior storage.
Mr. Bednarz stated he would like the Council to consider item 2 that states "Any exterior storage that
is not enumerated in 12 -13 -3 (1 -4), striking number 2 because 12- 3 -13 -3 (1 -4) is residential districts.
The Council was in agreement with this.
Permitted use of residential parking area
Mr. Bednarz reviewed this section with the Council.
Councilmember Bukkila thought this was condensed down to just the driveway and if something
could go in the garage they did not want to necessarily regulate this. Mr. Bednarz stated it is written
to allow one in each, the driveway and the garage.
Mayor Gamache thought if someone had two business vehicles in the garage it could be a problem.
Mr. Bednarz stated that was correct and would be a problem the way it is written.
Councilmember Jacobson thought they discussed this before and agreed that as long as a vehicle was
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Regular Andover City Council Meeting
Minutes — May 18, 2010
Page 6
in the garage it would not be a problem and one would be allowed in the driveway. Mr. Bednarz
stated if this was the case they could eliminate the words "and private garages ". Councilmember
Trude stated that was a code amendment from five years ago because they did not want people to
take over the garage for a business use. She preferred to leave item C alone.
Rear Yards
Mr. Bednarz stated this item was brought back from the previously stricken section and towards the
bottom is the discussion on recreational vehicles 45 feet in length in rear yards in the following
locations.
Councilmember Jacobson stated there are a number of lots on the map listed as 2.5 acres but they are
actually a bit smaller than 2.5 acres and if they adopt this the way it is all of the residents with the
blue lots indicated on the map could not take advantage of this rear yard code amendment and some
of the other provisions in this ordinance.
Mr. Baumgartner stated they could add some language stating "For those rural lots originally
intended to be 2.5 acres, but upon development, resulted in less than 2.5 acres, but at least 2.25 acres,
are for the purpose of this ordinance considered to satisfy the 2.5 acre requirement". Mr. Dickinson
stated this is based on a theory and concept of the 90 percent rule for lot splits and is intended to only
be a suggestion for the Council.
Councilmember Trude stated she was a little worried about this because there are some areas that
this would apply to. Mr. Dickinson stated it would apply to about 90 percent of the blue lots with the
exception of the far north western part of town by the river. Councilmember Jacobson stated they
are going to have problems with people wanting to put trailers on what they thought was 2.5 acres
and in reality it is less and if they have complaints will need to remove them because they would be
in violation of the ordinance.
The Council discussed the minimum allowed for lot size. Mr. Dickinson suggested using 95% of a
2.5 acre lot which would be 2.375 acres.
Mr. Dickinson also stated 2.375 acres could also apply if a resident owned two parcels that are
adjacent to one another and they total that amount. Councilmember Trude stated she did not mean
that and meant they needed to keep part two in but did not recall that part two applies anywhere in
the City, not just rural areas.
Mr. Dickinson noted the interpretation on this was for this to be city wide, but in rural areas that
were developed as rural subdivisions, they would use the 2.375 to 2.5 as the intent and this section
on page 7 is what they would apply to the rest of the community.
Items E & A
Mr. Bednarz reviewed these items with the Council.
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Regular Andover City Council Meeting
Minutes — May 18, 2010
Page 7
Home Occupation Section
Mr. Bednarz reviewed this section with the Council.
Title Six — Motor Vehicles
Mr. Bednarz reviewed the changes to this section with the Council.
Councilmember Jacobson stated at the last meeting he thought they were talking about why no
variance was shown in the ordinance he thought it was going to be put in here and wondered what
happened to it. City Attorney Baumgartner stated they were talking about the variance language and
what they opted to do was change the section regarding what constitutes an equivalent 2.5 acre rural
lot. He thought if they started getting into a variance, it is discretionary on the Council and puts them
in a tough situation because a lot of times the decision is going to be subjective.
Landscaping
City Attorney Baumgartner suggested the following wording `Building materials currently being
used on the premises of the property with an active building permit or landscaping materials to be
incorporated into a project on the premise of a property with an active remodeling/beautification
project, not to exceed six months within the calendar year."
Motion by Jacobson, Seconded by Knight, to move the adoption of the ordinance with the changes
discussed.
City Attorney Baumgartner suggested under 12.13.8.C3, talking about the driveways and private
garages, he would propose and suggest combining A & B because they want to get rid of the private
garage. The section would read "Driveways in a residential district shall be utilized solely for the
parking of licensed and operable motor and passenger vehicles, trailers and recreational vehicles, and
may not contain more than one vehicle registered as a commercial vehicle..." and incorporating B
into this and renumber, which would allow item E to be correct.
Councilmember Jacobson indicated he would accept this as an amendment.
Motion carried unanimously.
Councilmember Jacobson asked to direct City staff to review other ordinances that reference 2.5
acres to see if they should be modified to this criterion and to be brought to a workshop meeting for
discussion. Councilmember Trude asked that this be sent through the P & Z for public hearing.
Consensus of the Council was reached to direct staff to review and bring to a workshop.
Motion by Jacobson, Seconded by Bukkila, to approve the summary ordinance for publication.
Motion carried unanimously.
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Regular Andover City Council Meeting
Minutes — May 18, 2010
Page 8
APPROVE LICENSEAGREEMENT /HIDDENCREEKNORTHICLEARWIRE WIRELESS
Mr. Dickinson explained City Administration has negotiated a license agreement with Clear
Wireless, LLC for space in Hidden Creek North Park for the purpose of constructing, operating
and maintaining a monopole telecommunication tower within the land. If the license agreement
is approved the funds the City receives will be used to support future improvements at the park.
Councilmember Trude stated she was concerned with the safety of the kids playing in the area
and the location and she wondered if the pole could be moved. She requested staff to go back to
Clear Wireless and ask them to move the fence.
Mr. Dickinson stated he would request Clear Wireless to add fencing.
Councilmember Trude thought it would be nice for Clear Wireless to add evergreen around the
fence line instead of the landscaping being proposed.
Council discussed with staff possible landscaping alternatives.
Motion by Trude, Seconded by Jacobson, to approve the agreement contingent upon their
acceptance of the new conditions as discussed.
Mayor Gamache asked on diagram C -1, it has a dotted line around the item that goes into the ball
field and he wondered what that was for. Mr. Bednarz stated that was noting the detail that
shows up on the following page.
Mayor Gamache asked how many actual feet they would be from the fence. Mr. Bednarz showed
the plans to the Council and noted it would be approximately fourteen feet.
Councilmember Trude asked if there was a reason why they could not place the pole on the hill
or could they possibly place it closer to the street. Mr. Bednarz stated there are underground
utilities, berm, and because of the height they are trying not to move it any closer to the road.
Motion carried 4 ayes, 1 nay ( Gamache).
SCHEDULE EDA MEETING
The Council is requested to schedule an Economic Development Authority (EDA) meeting at
6:00 p.m. before the June 15, 2010 City Council meeting.
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Minutes —May 18, 2010
Page 9
Motion by Jacobson, Seconded by Trude, to schedule an EDA Meeting for June 15, 2010 at 6:00
p.m. Motion carried unanimously.
SCHEDULE JUNE WORKSHOP
The Council asked to have this item brought back to the next City Council meeting.
ADMINISTRATOR REPORT
City Administrator Dickinson updated the Council on the Administration and City Department
Activities, meeting reminders, CIP Projects and development activity.
MAYOR/COUNCIL INPUT
(State Budget Effects) — Councilmember Trude stated they have been reading in the paper that the
State did adjourn with a balanced budget and she wondered if staff knew what that meant for their
City. Mr. Dickinson stated Market Value Homestead Credit will be cut by about $528,000.
(Community Center Meeting) — Councilmember Knight stated at their meeting they were informed
by the new director at the YMCA that their YMCA is second in membership in the metro and very
soon will be first. Councilmember Trude wondered if there was any discussion regarding expansion.
(Public Works Appreciation Week) — Mayor Gamache indicated this week was Public Works
Appreciation Week and he went to the Public Works staff and spoke to them letting them know how
much they are appreciated by the City.
The City Council recessed at 8:33 p.m. to go into a closed session to discuss Open Space Land
Purchase Negotiations — White Pines Wilderness & Land Negotiation for PID number 29- 32- 24 -44-
0022.
The City Council reconvened at 9:13 p.m. to adjourn.
Motion by Trude, Seconded by Bukkila, to adjourn. Motion carried unanimously. The meeting
adjourned at 9:14 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary
Regular Andover City Council Meeting
Minutes — May 18, 2010
Page 10
REGULAR ANDOVER CITY COUNCIL MEETING MINUTES — MAY 18, 2010
TABLE OF CONTENTS
PLEDGE OF ALLEGIANCE .......................................................................... ............................... 1
RESIDENTFORUM ....................................................................................... ............................... 1
AGENDA APPROVAL ................................................................................... ............................... 3
APPROVALOF MINUTES ............................................................................ ............................... 3
CONSENTITEMS .......................................................................................... ............................... 3
Approvalof Claims ...................................................................................... ............................... 3
Order Improvement/Order Plans & Speca/09- 37/138' Avenue NW & Xavis Street NW /Water
MainExtension ...................................................................................... ............................... 3
Order Improvement/Order Plans & Speca/l0- 12/Public Works Salt Storage Facility ............... 4
Declare Surplus Equipment / Inventory ......................................................... ............................... 4
ApproveDebt Policy Updates ...................................................................... ............................... 4
Approve Refuse/Recycler Hauler Licenses .................................................. ............................... 4
Assistance to Firefighters Grant Application ............................................... ............................... 4
ANOKA COUNTY SHERIFF'S DEPARTMENT MONTHLY REPORT .... ............................... 4
CONSIDER CITY CODE AMENDMENT/EXTERIOR STORAGE OF COMMERCIAL
VEHICLES & OTHER STORAGE ITEMS .................................................... ............................... 4
APPROVE LICENSE AGREEMENTMIDDEN CREEK NORTH/CLEARWIRE WIRELESS. 8
SCHEDULEEDA MEETING ......................................................................... ............................... 8
SCHEDULEJUNE WORKSHOP .................................................................. ............................... 9
ADMINISTRATORREPORT ........................................................................ ............................... 9
MAYOR/COUNCIL INPUT ........................................................................... ............................... 9
ADJOURNMENT............................................................................................ ............................... 9
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: Mayor and Councilmembers
CC: Jim Dickinson, City Administrator / Finance Directc
FROM: Lee Brezinka, Assistant Finance Director
SUBJECT: Payment of Claims
DATE: June 1, 2010
INTRODUCTION
Attached are disbursement edit lists for claims related to the on going business of the City of Andover.
DISCUSSION
Claims totaling $64,086.27 on disbursement edit list #1- 2 from 05/21/10 to 05/28/10 have been issued and
released.
Claims totaling $695,766.33 on disbursement edit list #3 dated 06/01/10 will be issued and released upon
approval.
BUDGET IMPACT
The edit lists consist of routine payments with expenses being charged to various department budgets and
projects.
ACTION REQUESTED
The Andover City Council is requested to approve total claims in the amount of $759,852.60. Please note
that Council Meeting minutes will be used as documented approval.
Respectfully submitted,
ee Brezinka
Attachments: Edit Lists
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: Mayor and Council Members
CC: Jim Dickinson, City Administrator
David Berkowitz, Director of Public Wor s /City Engineer
FROM: Jason Law, Assistant City Engineer
SUBJECT: Approve Plans & Specs /Order Advertisement for Bids /09- 37/1381h Avenue
NW & Xavis Street NW Water Main Extension - Engineering
DATE: June 1, 2010
INTRODUCTION
The City Council is requested to approve final plans and specifications and order the
advertisement for bids for Project 09 -37, 138th Avenue NW & Xavis Street NW Water Main
Extension.
alp
DISCUSSION
The proposed improvements will include construction of a water main along 138th Avenue and
Xavis Street between Crosstown Drive and Bunker Lake Boulevard, repair of damaged concrete
curb and gutter, and paving of a new bituminous roadway. The improvements will include water
service lines stubbed at each parcels property line.
The bid results are scheduled to be brought forward for consideration of award at the July 6, 2010
regularly scheduled City Council meeting.
BUDGETIMPACT
The project will be funded with CDBG funds administered by Anoka County. This includes
construction costs as well as all indirect costs related to the design and construction up to a total
project cost of $300,000. There are no costs or assessments to the existing parcels proposed with
this improvement project. Should they so choose, the parcels would have to petition the City to
connect to the new service lines, at which point a feasibility report would be prepared to
determine water area and connection charges for each parcel.
ACTION REQUIRED
The City Council is requested to approve the resolution approving final plans and specifications
and ordering the advertisement for bids for Project 09 -37, 138th Avenue NW & Xavis Street NW
Water Main Extension.
R ectfull submitted,
/Z-�
Jas on J. Law, PE
Attachments: Resolution /
& Project Location Map'
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO.
MOTION by Councilmember to adopt the following:
A RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS AND
ORDERING ADVERTISEMENT FOR BIDS FOR PROJECT 09 -37, 138TH
AVENUE NW & XAVIS STREET NW WATER MAIN EXTENSION.
WHEREAS, pursuant to Resolution No. -10, adopted by the City
Council on the 18th day of Maw_, 2010, the City Engineer has prepared final
plans and specifications for Project No. 09 -37 for 138 Avenue NW & Xavis
Street NW Water Main Extension; and
WHEREAS, such final plans and specifications were presented to the City
Council for their review on the 1 st day of June 2010.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Andover to hereby approve the Final Plans and Specifications.
BE IT FURTHER RESOLVED by the City Council of the City of Andover to hereby
direct the City Clerk to seek public bids as required by law, with such bids to be
opened at 10:00 a.m. , Wednesday, June 30, 2010 at the Andover City Hall.
MOTION seconded by Councilmember and adopted by the
City Council at a regular meeting this 1st day of June , 2010 , with
Councilmembers
voting in favor of the resolution, and Councilmembers
against, whereupon said resolution was declared passed.
CITY OF ANDOVER
ATTEST:
voting
Michael R. Gamache - Mayor
Michelle Hartner — Deputy City Clerk
1
t
1
0
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: Mayor and Council Members
CC: Jim Dickinson, City Administrator
FROM: David D. Berkowitz, Director of Public Works /City Engineer
SUBJECT: Approve Plans & Specs /Order Advertisement for Bids /10- 12/Public Works
Salt Storage Facility - Engineering
DATE: June 1, 2010
INTRODUCTION
The City Council is requested to approve final plans and specifications and order the
advertisement for bids for Project 10 -12, Public Works Salt Storage Facility.
DISCUSSION
Public Works Salt Storage Facility will consist of a tension fabric truss structure set on pier
footings with tip up panels interior that will provide a storage area for deicing material (salt) and
other granular material that is currently stored in the Public Works yard. The structure has
received a CUP to allow the height of the structure to exceed 35 feet.
The project will be constructed in three phase. The first phase will be to prepare the site by
excavating the soil, setting the grade for the site and placing class 5. This work will be
completed by Public Works staff. The second phase will be to construct the building. The plan
and specification that is approved under this item will provide contractors with the details on
how the building is to be constructed. The contractor will work with a registered engineer in the
State of Minnesota to provide a complete plan set for construction. This plan will be submitted
to the City Building Department for review and permit approval. The last phase will be to shape
the class 5 and pave two lifts of bituminous. The paving contract has been let through the 2010
Street Reconstruction project.
Plans are available in the City Engineer's office for review.
BUDGETIMPACT
The entire project is estimated to be $165,000 and will be funded from the City's Building funds.
ACTION REQUIRED
The City Council is requested to approve the resolution approving final plans and specifications
and ordering the advertisement for bids for Project 10 -12, Public Works Salt Storage Facility.
Respectfully submitted,
David D. Berkowitz
Attachments: Resolution'/
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
►0
MOTION by Councilmember
to adopt the following:
A RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS AND
ORDERING ADVERTISEMENT FOR BIDS FOR PROJECT 10 -12, PUBLIC
WORKS SALT STORAGE FACILITY.
WHEREAS, pursuant to Resolution No. -10, adopted by the City Council
on the 18th day of May , 2010, the City Engineer has prepared final plans
and specifications for Project No. 10 -12 for the Public Works Salt Storage
Facility; and
WHEREAS, such final plans and specifications were presented to the City
Council for their review on the 1St day of June 2010.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Andover to hereby approve the Final Plans and Specifications.
BE IT FURTHER RESOLVED by the City Council of the City of Andover to hereby
direct the City Clerk to seek public bids as required by law, with such bids to be
opened at 2:00 p.m., July 27 , 2010 at the Andover City Hall.
MOTION seconded by Councilmember and adopted by the
City Council at a regular meeting this 1St day of June , 2010, with
Councilmembers
voting in favor of the resolution, and Councilmembers
against, whereupon said resolution was declared passed.
ATTEST:
Michelle Hartner — Deputy City Clerk
CITY OF ANDOVER
voting
Michael R. Gamache - Mayor
NDOVE
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: Mayor and Councilmembers
CC: Jim Dickinson, City Administrator
Will Neumeister, Community Developm t irector
FROM: Courtney Bednarz, City Planner
SUBJECT: Approve Used Vehicle Sales License /Andover Auto Care /16191 Round Lake
Boulevard- Planning
DATE: June 1, 2010
INTRODUCTION
The applicant intends to open a used vehicle sales business to replace the currently licensed used
vehicle sales business on the subject property. City Code 3 -8 does not allow the existing
business license to be transferred. The applicant must receive approval from the Council for a
new business license.
DISCUSSION
The attached letter describes the transfer of ownership of the existing vehicle sales business. No
changes to the site are proposed. The previously approved conditional use permit and
commercial site plan remain effective and all of the conditions of that approval remain in place
(see attached resolution and plan set).
The existing business license for Twin Rivers Auto Sales is due to expire at the end of this year.
Mr. Brabant has verbally indicated that he will not seek renewal of the license.
ACTION REQUESTED
The Council is asked to approve or deny the business license. A motion is required to act on the
business license application.
Attachments
Location Map
Applicant's Letter
Commercial Location Checklist
Resolution R109 -06
Previously Approved Commercial Site Plan (3 pages)
City Code 3 -8
Ae bm'tted,
dnar
Cc: Mark Adkinson Andover Auto Care 16191 Round Lake Boulevard NW
C 1 T Y () F'
NDW
Incorporated
1974
Used Vehicle Sales License
16190 Round Lake Boulevard NW
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April 22, 2010
City of Andover
1685 Crosstown Boulevard NW
Andover, MN 55304
SUBJECT: Letter of Intent
To Whom it may Concern:
I am writing to inform you of my intent, as owner of Andover Auto Care, to become a licensed used car
dealer at 16191 Round Lake Boulevard where Andover Auto Care and Twin Rivers Auto currently
operate.
Joe Brabant, owner of Twin Rivers Auto, was granted a used car dealer license in 2004, and has been
operating a used car business at 16191 Round Lake Boulevard NW since that time.
I have been informed that Mr. Brabant will be closing Twin Rivers Auto, and it is my intent to continue
to operate a used car business at this location in the same fashion as it currently operates -- including
office space, parking space, and number of cars for sale -- under the name of Andover Auto Care.
The closing of Twin Rivers Auto, coupled with the current economic conditions, make it is necessary for
Andover Auto Care to expand its business to include used car sales at this location in order to meet its
financial obligations, including city taxes. As mentioned above, Andover Auto Care used car sales will
replace Twin Rivers Auto used car sales at this location; no new /additional businesses are being added.
I look forward to receiving the necessary conditional use permit and dealer license at your earliest
convenience.
If you have any questions, please contact me at 763 - 422 -4004.
Sincerely,
Mark Adkinson
Owner, Andover Auto Care
16191 Round Lake Boulevard
Andover, MN 55304
763 - 422 -4004
MINNESOTA DEPARTMENT OF PUBLIC SAFETY
DRIVER AND VEHICLE SERVICES
445 Minnesota Street, St Paul, MN 55101 -5166
651- 296 -2977
rte; 651- 297 -1480
EMAIL: DealerQuestion @mnddvelnfo.org
OFFICE USE ONLY
DEALER NUMBER:
DATE RECEIVED. _
INITIALS:
Minnesota Vehicle Dealer License — Commercial Location Checklist
This checklist describes (check one): Primary Location ❑ Additional Location
(Attach a separate checklist for each location)
DEALER
NUMBER
Street _/L/47/ d 6m),1 A � -El Uly /��/
f'f'
City �f ✓fG/O(%Edi State jq&� D Z1'5,3ar County (d -4je) �
Commercial Building Requirement: New, Used, Salvage Pool, and Auctioneer dealers must have a Commercial Building, which means
a permanent, enclosed building that is on a permanent foundation and is connected to local sewer and water facilities or otherwise
complies with local sanitation codes, is adapted to commercial use and conforms to local government zoning requirements. (Minnesota
Statutes, section 168.27 subdivision 1)
Commercial Office Space Requirement: Lessors, Wholesalers, and Brokers must have at least a Commercial Office Space, which
means a space occupying all or part of a commercial building. (Minnesota Statutes, section I68.27 subdivision 1)
Instructions
• Check the type of dealer's license that applies
• Answer L(True) or E (False) to each statement that applies to the license type you checked.
• Dealership owner or officer must sign on reverse side of form
Check the license type that applies to you: ❑ New Used ❑ Salvage Pool
11 Additional Location/Display Lot - respond to statements 2. 7, & 8 only
1•
ur
The dealer keeps all books and records necessary to conduct business at the main dealership location. The dealer maintains
copies of the books and records at any additional locations they may have.
2•
The dealer owns the above location or leases the location (minimum one -year lease required). Please attach proof of
ownership or Verification of Property Lease - form PS2407.
3
The dealership has a separate and identifiable entrance that leads to the outdoors. (See definition of commercial building
above) May include a strip mall or commercial garage building. Other entrances that lead from other areas of the
building must be closed and lockable. (Commercial office space within a commercial building does not meet the statutory
license requirements)
4.
The public cannot access the dealership by entering through any other business or residence that is located in the same
building as the dealership.
5•
The dealership location is enclosed with floor to ceiling walls, a door that can be shut and locked to close off the entire
entrance, and is designated for exclusive use of the dealership.
6•
The dealership location has an address that is separate from any other address in the building.
7•
dealership has a display area, either indoors or outdoors, large enough to display at least 5 vehicles. This display area
/The
is designated for the exclusive use of the dealership and is distinguished from any other business' inventory.
S.
The dealership has a sign outside of the commercial building, in a public area that identifies the dealership.
• The sign must be in letters that contrast sharply in color with the sign background.
• If the sign is on a commercial building or a display area, it must be readily legible during daylight hours from the
/
nearest road or street.
• If the dealer's display area is not adjacent to the dealer's commercial building, the sign at the display area must
also indicate where the commercial building is located.
9.
The dealership's normal business hours are conspicuously posted and readily viewable by the public.
10.
-Personnel or automatic telephone answering service is available during normal business hours.
11.
The above location meets all local zoning requirements as indicated on the Zoning Verification - form PS2421.
12•
(New Vehicle Dealers Only) The dealership has a facility for the repair and service of motor vehicles and the storage of
parts, not more than ten miles distance from the principal place of business.
,heck the license type that applies to you:
TIF
E] Wholesale License El Lessor F1 Broker
❑ Auctioneer
yr
The dealer keeps all books and records necessary to conduct business at the main dealership location. The dealer maintains copies
The dealer keeps all books and records necessary to conduct business at the main dealership location. The dealer maintains copies
of the books and records at any additional locations they may have.
The dealer owns the above location or leases the location (minimum one -year lease required). Please attach proof of ownership or
Verification of Property Lease- form PS2407.
The dealership location is enclosed with floor to ceiling walls, a door that can be shut and locked to close off the entire entrance,
and is designated for exclusive use of the dealership
Personnel or automatic telephone answering service is available during normal business hours.
The above location meets all local zoning requirements as indicated on the ,Zoning Verification - form PS2421.
(Broker Only) The dealership has a sign, clearly identifying the broker by name and listing the business hours. The sign is posted
in a location readily viewable by the public.
(Lessor Only) The dealership's normal business hours are conspicuously posted and readily viewable by the public.
❑ Auctioneer
yr
The dealer keeps all books and records necessary to conduct business at the main dealership location. The dealer maintains copies
of the books and records at any additional locations they may have.
The dealer owns the above location or leases the location (minimum one -year lease required). Please attach proof of ownership or
Verification of Property Lease - form PS2407.
The dealership has a separate and identifiable entrance that leads to the outdoors or to a public area. The dealer may maintain
other entrances to the dealership. Other entrances that lead from a commercial or residential space in the same building must be
lockable and close the entire entrance. Shared office space, such as a reception area or secretary, does not qualify as a public area.
The public cannot access the dealership by entering through any other business or residence that is located in the same building as
the dealership.
The dealership location is enclosed with floor to ceiling walls, a door that can be shut and locked to close off the entire entrance,
and is designated for exclusive use of the dealership
The dealership location has an address that is separate from any other address in the building.
The dealership's normal business hours are conspicuously posted and readily viewable by the public.
Personnel or automatic telephone answering service is available during normal business hours.
The above location meets all local zoning requirements as indicated on the Zoning Verification - form PS2421.
❑ Limited Used Vehicle License
TIF
This place of business meets all standards outlined above. I understand that any incorrect statement
constitutes material sr presentation and as a result, the dealer license is subject to withdrawal.
x
(Signature of Owner /Officer)
PS2410 -13
DA r> 7 �a zo is
The dealer keeps all books and records necessary to conduct business at the main dealership location. The dealer maintains copies
of the books and records at any additional locations they may have.
The dealer owns the above location or leases the location (minimum one -year lease required). Please attach proof -of- ownership or
Verification of Property Lease - form PS2407.
The dealership's normal business hours are conspicuously posted and readily viewable by the public.
Personnel or automatic telephone answering service are available during normal business hours
This place of business meets all standards outlined above. I understand that any incorrect statement
constitutes material sr presentation and as a result, the dealer license is subject to withdrawal.
x
(Signature of Owner /Officer)
PS2410 -13
DA r> 7 �a zo is
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. R109 -06
A RESOLUTION APPROVING CONDITIONAL USE PERMIT FOR USED VEHICLE
SALES ON PROPERTY LOCATED AT 16191 ROUND LAKE BOULEVARD LEGALLY
DESCRIBED AS LOT 1, BLOCK 1 WESTVIEW INDUSTRIAL PARK, ANOKA COUNTY
MINNESOTA
WHEREAS, Joe Brabant has requested approval of a conditional use permit for used vehicle
sales on the subject property, and;
WHEREAS, the applicant has requested a variance to City Code 12 -13 -9 to allow one drive lane
for two way traffic to be less than 24 feet in width, and;
WHEREAS, the findings for the proposed variance are that the drive lane is only slightly below
the requirement at 22.26 feet in width and will be used to access parking stalls primarily for
display of vehicles for sale, and;
WHEREAS, the applicant has requested a variance to City Code 12 -13 -6 to allow less than the
required amount of trees and shrubs and a variance to City Code 12 -13 -5 to allow the parking
area not to be screened from Round Lake Boulevard, and;
WHEREAS, the Planning Commission was in favor of the variance to the width of one drive
lane and divided on whether to allow the variance to the landscaping and screening requirements,
and;
WHEREAS the Planning Commission recommended that a landscaping plan be submitted for
review by the City Council, and;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Andover hereby
agrees with the recommendation of the Planning and Zoning Commission and approves used
vehicle sales on the subject property subject to the following:
1. The applicant shall be required to obtain approval of a vehicle sales business license from
the City Council.
2. The applicant shall complete the Commercial Site Plan process with the City of Andover,
including redesign of the site to conform with all applicable sections of the City Code.
3. The applicant shall be required to submit an irrevocable letter of credit in the amount
necessary to complete the parking area, ponding and landscaping that are required for the
subject property.
4. The Landscaping Plan shall conform to the plan stamped received by the City of Andover
August 29,2006.
Adopted by the City Council of the City of Andover on this 5t' day of September, 2006.
CITY OF NDOV R
ATTEST: chael R. Gamache, Mayor
Victoria Volk, City Clerk
s
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LEGEND
EAstI.9 cwtpur
b. ENGINEER SURYEYOR —898— Pr ." ccnto.m
JOHN OLIVER & ASSOCIATES. WC To
5ED DODGE AVENUE � 90OV) C.Isrmg Spot EloYatiorm;
ELK RIVER, NIN 55330 - 75.5 prpowed spot EIMU n
763-441-2072 763-441-5655 FAX
0 20 40 60 1O.DISTING ZONING - INDUSTRIAL - - - - - - Slit fence
SCALE IN FEET 11 SITE AREA 3b.95D sr. (190- x 205 GmIlIng L� IU BASE
Re.hrkq Web
NOTES- ExtsnNG BUILDING 4.546 SF (IL7:;) Omle"t Slope
I. ALL SPOT ELEVATION ARE TOP BACK OF CURB PROPOSED PAVING AREA = 20.3A7 S.F. (5Z-2r) Proposee Stem se.e.
UNLESS OTHERWISE NOTED. PROPOSED POND AREA 0 NWL = 1,46 S.F (3.65) pran.pg4 Dk..r.
Z INSTALL EROSION CONTROL MEASURES PRIOR PROPOSED TURF AREA - mesa Sy (3,-:55) Ble Rom
I TO SITE GRADING. PARKING STALLS PROVIDED - 17 pr.p.w Otfodl G.tw W-12, B6
3. ALL DISTURBED NON -PAVED AREAS SMALL BE RESTORED PARKING STALLS REOUIRED - TO BE DETERMINED ON CITY
WITH TOPSOIL (SALVAGED OR IMPORTED LAWN SEED AND
MAW FIBER BLANKET. SEED SMALL BE mNDGT 3876 MIX
NO. 608 0 ;00 LBS/AC OR MUIVALIENT 12. BERM MARK - $25.02 '29MG0
SE OUADRAMT OF ROVMD 10. -E BLVD.
4 THERE WERE NO TREES WITHIN YME- AREA TO BE DISTURBED AND I6IS7 AVENUE
S. THERE 13 NO INTENT TO PLANT SHRUBS OR TREES AS PMT PROPER -'SILT STOP' FABRIC
a OF THIS PROJECT 13. RETAINING WALL DESIGN BY
OTHERS 2'.2'.4' WOOD
S. LIGHTING PLM BY OTMERS STAKES 0 4' O.C. 10, MINIMUM!
VACKFU BASE
7. LEGAL DESCRIPTION
LOT 1. BLOCK I WESTVIEW INDUSTRIAL PARK ANDOVER. ANOKA COUNTY.
MINNESOTA BURY BOTTOM
EAMS N 0 6 • cF FAemC
a. O"iER / APPLICANT- JOE eRAamT PROPOSED
15191 ROUND LARE BLVD EMBANKMENT
ANDOVER MN 55304
612-718-3112 (CELL)
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A— - - -- — -- -
CHAPTER 8
VEHICLE SALES BUSINESS
3 -8 -1: Purpose and Intent
3 -8 -2: Definitions
3 -8 -3: License Required
3 -8 -4: Application for License
3 -8 -5: Review of Application; Issuance or Denial
3 -8 -6: License Fees and Term; Renewals
3 -8 -7: Conditions of License
3 -8 -8: Standards
3 -8 -9: Violation Provisions
3 -8 -10: Revocation of License
3 -8 -1: PURPOSE AND INTENT: It is the purpose of this chapter to regulate
vehicle sales to establish reasonable and uniform regulations to prevent adverse
impacts on the health, safety, morals and general welfare of the citizens of the
city.
3 -8 -2: DEFINITIONS:
A. Gross Vehicle Weight Rating: The total weight of a fully equipped vehicle
and payload including the amount of weight that can be carried and towed.
B. Vehicle Sales: the sale of cars and trucks as limited by the City Code,
excluding recreational vehicles.
3 -8 -3: LICENSE REQUIRED: No person shall engage in the business of selling,
trading or advertising the sale of new or used vehicles within the city without first
obtaining a license as provided in this Chapter. For the purposes of this chapter,
anyone who, as a part of their livelihood, engages in the regular sale, trade or
exchange of vehicles shall be deemed to be doing business as a new or used
vehicle dealer.
3 -8 -4: APPLICATION FOR LICENSE:
A. Information Required: Any person, partnership or corporation desiring to
secure a license shall make application to the City Clerk including the
following:
1. Completed city application form
2. Fee as established by City Code.
3. Completed Minnesota Vehicle Dealer License Commercial Location
Checklist
3 -8 -5: REVIEW OF APPLICATION; ISSUANCE OR DENIAL: The City Clerk
shall submit the application to the City Council for its consideration. The Council,
by motion, may grant or refuse to grant the license after consideration of the
application.
3 -8 -6: LICENSE FEES AND TERM; RENEWALS: The fee for every such
license shall be established by resolution of the City Council. Every such license
shall expire on December 31 next after it is issued.
3 -8 -7: CONDITIONS OF LICENSE:
A. Transferability: The license shall not be transferable from one person to
another, and a new license must be applied for each time a place of
business is changed.
B. Posting: Every such license shall be kept conspicuously posted in the
place for which the license is issued and shall be exhibited to any person
upon request.
C. Inventory: Vehicles allowed to be sold or stored on site shall be limited to
a vehicles that are eligible to be issued a title up to a gross vehicle weight
rating of 12,500 pounds.
D. Restrictions and Conditions: The Council may impose any conditions or
restrictions it deems necessary or advisable in the public interest,
including but not limited to the hours of operation, building materials,
fencing, landscaping, screening, lighting and signage.
E. Review: The Council may review the license at any time for the purpose
of adding additional conditions to mitigate adverse impacts on the health,
safety, morals and general welfare of the citizens of the city.
3 -8 -8: STANDARDS: The following standards are established for all businesses
engaged in the selling, trading or advertising the sale of new or used vehicles
within the city:
A. Parking areas shall conform to the requirements of City Code 12 -13 -9. The
Site Plan shall clearly identify parking for customers and parking for display of
vehicles for sale. Parking shall be prohibited in drive lanes, on landscaped
areas and any place other than approved on the site plan.
B. All businesses engaged in the sales, trade or advertising the sale of new or
used vehicles within the City limits shall conduct these activities only on
properties for which they have been granted a license under this chapter.
This provision shall not apply to promotional events and activities conducted
outside the city limits.
C. Vehicles that are visibly damaged shall not be visible from public streets and
shall not be stored outdoors for more than 48 hours.
D. Outdoor storage of vehicle parts or other materials, including but not limited to
tires, scrap metal, glass, pallets and refuse shall be prohibited.
E. Sales of used vehicle parts shall be prohibited.
F. The dismantling or reduction of vehicles shall be prohibited.
G. Signage shall conform to City Code 12 -13 -8 and shall be further restricted as
follows:
1. All signs posted on vehicles shall be inside the vehicle.
2. No sign posted on vehicles shall contain text font or other
information that is larger than three inches in height.
H. The estimated value of improvements to the licensed property shall exceed
the estimated land value of the licensed property as estimated by Anoka
County.
3 -8 -9: VIOLATION PROVISIONS: Any person who shall violate any portion of
this chapter shall be guilty of a misdemeanor.
3 -8 -10: REVOCATION OF LICENSE: Every such license may be revoked by the
Council after the license has been given reasonable notice and an opportunity to
be heard for the violation of any provision of this chapter or for the violation of
any conditions or restrictions in the motion granting the license or any motion
thereafter passed by the Council. (Amended 4 -4 -06, Ord. 324)
Y O F
O TT 1 E
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: Mayor and Council Members
CC: Jim Dickinson, City Administrator / Finance Director
David D. Berkowitz, City Engineer/Director of Public Works
FROM: Todd J. Haas, Assistant Public Works Director
SUBJECT: Order Improvement /Approve Plans /09- 18/Hawkridge Park Reconstruction —
Engineering
DATE: June 1, 2010
INTRODUCTION
The City Council is requested to order improvement and approve plans for the reconstruction of
Hawkridge Park, Project 09 -18.
DISCUSSION
Based on the City Council discussion at the recent May workshop meeting, the City Council has
indicated that they would like to move forward with constructing Phase 1 (see attached) of the
improvements for Hawkridge Park. Phase 1 includes grading of the site, construction of the
parking lot, constructing a new well, and installation of the irrigation system for all 3 soccer
fields. Staff has been in contact with North Metro Soccer Association (NMSA) about receiving
the $100,000 donation, which the City Council will need to accept at a future Council meeting
prior to any construction work being done. By authorizing the project to move forward, this will
allow staff to schedule construction and obtain the necessary permits from the various agencies.
BUDGETIMPACT
The budget for the improvement is $225,000. This is identified in the Park Improvement Fund
Projected Fund Balance ($100,000 from the NMSA donation and $125,000 from levy /park
dedication fund) to fund the improvements.
ACTION REQUIRED
The City Council is requested to order the improvement and approve plans for Hawkridge Park
Reconstruction, Project 09 -18.
Respectfully submitted,
Todd
Attachments: Phase 1 Improvements Park Improvement Fund Projected Fund Balance
cc: Ted Butler, Park and Recreation Commission Chair (copy sent by e -mail)
Barb Anderson, President of NMSA (copy sent by e -mail)
Hawkridge Park Reconstruction (C.P. 09 -18)
Estimated Project Quantities
SECTION A (SITE GRADING) - PHASE 1
CONTRACTOR
PRICING
PUBLIC WORKS
MATERIAL PRICING
-INO..
DESCRIPTION
. ':.UNIT
EST' -
ourAN. . :'
r "UNIT::.
PRICEe
TOTAL
UNI
PRICE
TOTAL -
1
Mobilization
LS
1
$10,000.00
$10,000.00
$0.00
$0.00
2
Transplant Tree /Shrub
LS
1
$2,300.00
$2,300.00
$1,000.00
$1,000.00
3
Clear and Grub Tree
EA
3
$125.00
$1,000.00
$100.00
$800.00
4
Remove & Salvage Goal Posts
LS
I
$750.00
$750.00
$200.00
$200.00
5
Satvcut & Remove Bituminous Pavement
SY
100
$2.50
$250,001
$2.50
$250.00
6
Salvage Class 5
CY
250
$5.00
$1,250.00
$0.01
$2.50
.7
Common Excavation (LV)
CY
13,040
$4.25
$55,420.00
$0.01
$130.40
8
Select Granular Borrow (LV)
CY
350
$9.00
$2,100.00
$4.00
$1,400.00
9
Subgrade Preparation
SY
10,560
$1.50
$15,840.00
$0.01
$105.60
10
Aggregate Base Class 5
TN
2,1
$13.00
$27,690.00
$9.00
$19,170.00
11
Bituminous Wear Course (LV 4)
TN
20
$90.00
$1,800.00
$90.00
$1,800.00
12
Select Topsoil Borrow - Pulverized(LV)
CY
3,000
$13.00
$39,000.00
$9.00
$27,000.00
13
Silt Fence
LF
200
$3.00
$600.00
$2.00
$400.00
14
Seeding/Athletic Mix
AC
10
$1,400.001
514,000.00
$825.00
$8,250.00
is
Erosion Control Blanket Cat. 2S w/ Seed
SY
6,000
$1.75
$10,500.00
$1.50
$9,000.00
16
F &I Nyoplast Stonn Drainage Structure.
EA
1
$1,500.00
$1,500.00
$1,350.00
$1,350.00
17
F &I 15" HDPE Storm Sewer
LF
330
$20.00
$7,000.00
$10.00
$3,500.00
18
F &I I5" CMP FES and Trash Guard
EA
2
$250.00
$500.00
$200.00
$400.00
19
Famish and Install Rip Rap Class III
CY
10
$85.00
$850.00
$60.00
$600.00
20
Well
LS
1
580,000.00
$80,000.00
$80,000.00
$80,000.00
21
Irrigation
LS
1
$30,000.00
$30,000.00
$20,000.00
$20,000.00
22
Relocate Swingset Area
LS
1
$1,500.00
SL50U.001
$250.00
$250.00
23
E ui ,rent Rental / Fuel
LS
1
$0.00
$0.00
$30,000.00
$30,000.00
24
Signage
LS
1
$1,500.00
$1,500.00
$1,500.00
$1,500.00
`
S %,Contingency
$15;267150
$1Q 335:43
Section t Total
SECTION B (HOCKEY RINK) - PHASE 1
$320,617.50
5217,463.93
CONTRACTOR
PRICING
PUBLIC WORKS
MATERIAL PRICING
: ITEM'.-
NO:,:
DSSCRIPTION�
;UNIT
EST; - --
UAN. -.<
UN[T,i_
PRICE' -.
-
.'TOTAL'
'iUNIT '
.PRICE.
100
Transplant Tree /Shrub
LS
1
$2,700.00
$2,700.00
$1,000.00
101
Remove & Salvage Hockey Boards
I.S
1
$3,500.00
$3,500.00
$1,000.00
$1,000.00
102
Remove & Salvage Lights
LS
1
$2,500.00
$2,500.00
$2,500.00
$2,500.00
103
Common Excavation (LV)
CY
210
$4.50
$945.00
$0.01
$2.10
104
Subgrade Preparation
SY
1,900
$1.50
$2,850.00
$0.01
$19.00
105
Aggregate Base Class 5
TN
505
$11.00
$5,555.00
$9.00
$4,545.00
106
F & I Lights (New, Includes Power to Site)
LS
1
$15,000.00
$15,000.00
$15,000.00
$15,000.00
107
P & I Hockey Boards
N
1
$35,000.00
$35,000.00
$15,00.000
$ 15000.00
IDS JEquipment
Rental/ Fuel
LS
I
$0.00
$0.00
00.0
$2,000.00
50A Connngeit "Y
, °$_3;402.50
' -
_ $2,0 3 81
Section B Total
Indirect Costs (Permits, Testing, Fees, etc)
571,452.50
543,119.41
$7,500.00
$7,500.00
ota ase rolcct osts ( ectton A )
S399;570.09
S
SECTION C (8' BITUMINOUS TRAIL) - PHASE 2
PUBLICVORKS
MATERIAL PRICING
CONTRACTOR
PRICING
PUBLIC WORKS
i'.IATERIAL PRICING
ITEM
: NO.
_
DESCRIPTION
-
.. UNIT
ESTr
-UAN.
UNIT>
PR[CE i
TOTAL
!UNTO
f PRICE',
TOTAL
200
Common Excavation (LV)
CY
120
$4.50
$540.00
$0.01
$1.20
201
Subgrade Preparation
SY
1,440
$1.50
$2,160.00
$0.01
$14.40
202
Aggregate Base Class 5
TN
395
$11.00
$4,345.00
$9.00
$3,555.00
203
Bituminous Wear Course (LV 4)
TN
195
$90.00
$17,550.00
$90.00
$17,550.00
204
Equipment Rental Fuel
LS
1
$0.00
$0.001
$1,000.00
$1,000.00
-;
5 %Contingency'
.'
- -
.' :,
.,$1;229.75
. '$1,106:03
Indirect Costs (Perntits,'Cesting, Pees, etc)
.Section C Total
$25,824.75
523,226.63
$750.00
$750.00
ota ase ro3ect 'osts('ectton ')
3) ,
5
COST NOT DETERMINED FOR PHASE 3
SECTION D (WARAHNG HOUSE) - PHASE 3
ITEM EST:
N0. DESCRIPTION UNIT QUAN.
_ 300 Warning House/ Septic System - _ LS 1
' S %Conting'�ncy, „``
Section D Total
CONTRACTOR
PRICING
PUBLICVORKS
MATERIAL PRICING
I1,VIT' '
PRICE ''
TOTAL
" WIT
PRICE
.: TOTAL.
$0.00
$0.00
$0.00
$0.00
' SUM)
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO:
CC:
FROM:
SUBJECT:
DATE:
Mayor and Council Members
Jim Dickinson, City Administrator / Finance Director
David D. Berkowitz, City Engineer/Director of Public Works
Todd J. Haas, Assistant Public Works Director
Authorize Sophies South Park Improvements — Engineering
June 1, 2010
INTRODUCTION
The City Council is requested to authorize improvements for Sophie's Park.
DISCUSSION
Attached is the updated version of the park improvement fund balance for your review which
identifies $75,000 that would be used to purchase and install new playground equipment and
install a paved basketball court. Depending on the project cost estimate, a small shelter and
horseshoe pit may be considered.
Staff has been in contact with Scmeichiel's who live adjacent to the park about the possibility of
improving the park and they were certainly ecstatic about the improvement possibilities.
Note: If improvements for the park are authorized most of the work will be completed late
summer or early fall as it will take some time to order the equipment.
ACTION REQUIRED
The City Council is requested to authorize improvements of Sophie's Park.
Respectfully submitted,
Todd J. Haas
Attachments: Park Improvement Fund Balance Sheet, of the park
Cc: Russ and Carol Schmeichel (Copy sent by e -mail)
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO:
CC:
FROM:
SUBJECT:
DATE:
Mayor and Council Members
Jim Dickinson, City Administratc
Donald Olson, Building Official
Approve 2010 Fee Ordinance Changes -- Building
June 1, 2010
INTRODUCTION
The City Council is requested to consider fee ordinance changes that will bring the City Fee
Code in compliance with recently amended State Statute requirements.
DISCUSSION
During the most recent legislative session Minnesota State Statute 326B.148 was
amended to increase the state surcharge from $.50 to $5.00. See the attached Ordinance
Amendment for the proposed changes. Section 1 -7 -3 of Andover City Code contains
the fee schedule for the year of 2010 and is being amended to change all flat/fixed fee
permits surcharge from 50 cents to $5.00 per permit. The Minnesota Statutes 32613.148
"SURCHARGE" amendment is for one year effective July 1, 2010, until June 30, 2011.
The Statute also removes the state surcharge from septic new, repair and mound
installation permits. The MPCA (Minnesota Pollution Control Agency) under Minnesota
Statutes 115.551 TANK FEE collects a $25.00 fee for each septic system tank installed.
Therefore a 50 cent state surcharge tax is not required to be collected for DOLI
(Department of Labor & Industry). Staff requests the removal of all state surcharge tax
for septic permits, and remove the "well & septic verification" charge as the City of
Andover does not offer this service. The "well & septic verification" inspections are
done by private inspectors for a fee.
Lastly, the Statute was repealed that set a limitation on fees that could be charged for
replacement of water heaters. It is recommended that the fee be set at $50, raising it from
the $15 fee that is presently in the ordinance. This is compatible with other mechanical
permits for heating installations.
ACTION REQUESTED
Council is requested to approve the attached Ordinance Amendment to City Code Section
1 -7 -3 "Permit Fees, Service Charges, and Penalties Code" and also approve the Summary
Ordinance for publication.
Res ectfully submitted, .. _
z
Donald Olson
Building Official
Attachments — Minnesota Statute 462.353, Minnesota Statute 326B.148 "surcharge " and
16B.665 being repealed.
Ordinance Amendment & Summary Ordinance
Minimum state building permit surcharge changes for a year Page 1 of 2
MNOSHA Compliance MNOSHA Workplace Safety Consultation File a complaint Report an accident Career opportunities
Minimum state building permit surcharge changes for a year
>> Why is this surcharge changing for a year?
The Minnesota Statutes § 326B.148 "SURCHARGE" has been changed for one year effective
July 1, 2010, until June 30, 2011.
The change only applies to the "Permits based on Fixed Fees, Part 1" and "Permits based on
Fixed Fees, Part 2" portions of the Minnesota Department of Labor and Industry's (DLI)
surcharge reporting form.
The minimum surcharge for a "fixed fee" permit is $5, beginning July 1, 2010
• Municipalities must begin collecting the $5 minimum surcharge fee July 1, 2010, and
continue to collect the new minimum through June 30, 2011.
• If the fee collected for the "fixed fee" permit is less than $10,010, the surcharge is $5. Fixed
fee permits with a fee of less than $10,010 are reported in "Permits based on Fixed Fees,
Part 1" of the surcharge form.
. If the fee collected for the "fixed fee" permit exceeds $10,010, the fee is multiplied by .0005
because $10,010 is the point where the surcharge would increase to $5.01. Fixed fee
permits with a fee of $10,010 or more are reported in "Permits based on Fixed Fees, Part 2"
of the surcharge form.
. The remainder of the surcharge law did not change.
The change to the surcharge law is underlined below. Minnesota Statutes 2008, section
3266.148, subdivision 1, is amended to read:
Subdivision 1. Computation. To defray the costs of administering sections
326B.101 to 32613.194, a surcharge is imposed on all permits issued by municipalities
in connection with the construction of or addition or alteration to buildings and
equipment or appurtenances after June 30, 1971. The commissioner may use any
surplus in surcharge receipts to award grants for code research and development and
education.
If the fee for the permit issued is fixed in amount the surcharge is equivalent to one -
half mill (.0005) of the fee or 50 cents, except that effective July 1. 2010. until June 30
whichever amount is greater.
New surcharge forms online Aug. 2
New surcharge forms with the change will be available for reporting on the DLI Web site Aug. 2,
2010. Go to http:// www .dii.mn.gov /CCLD /Surcharge.asp to access the report forms. The
current reporting forms will be available until Aug. 2, 2010.
To complete or change a surcharge report after Aug. 2, 2010, for a month or quarter before July
2010, contact Cindy Chapel or Eileen McNiff at (651) 284 -5411, or via e-mail at
Cynthia.Chapel@state.mn.us or Eileen.McNiff @state.mn.us
http: / /www.dli. mn.gov /ccld/SurchargeChange.asp 5/10/2010
E
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CODE SECTION 1 -7 -3
(PERMIT FEES, SERVICE CHARGES, AND PENALTIES CODE)
STATUTORY AUTHORIZATION AND POLICY
Statutory Authorization
This ordinance is adopted pursuant to the authorization and policies contained in Minnesota Statute 462.353
& Minnesota Statute 326B.148 "surcharge" and 1613.665 being repealed..
Policy
Section 1 -7 -3 of Andover City Code contains the fee schedule for the year of 2010 and is being amended
to change all flat/fixed fee permits surcharge to increase from 50 cents to $5.00 per permit. The
Minnesota Statutes 32613.148 "SURCHARGE" has been changed for one year effective July 1, 2010,
until June 30, 2011.
2. Remove state surcharge from septic new, repair and mound installation permits. The MPCA (Minnesota
Pollution Control Agency) under Minnesota Statutes 115.551 TANK FEE collects a $25.00 fee for each
septic system tank installed. Therefore a 50 cent state surcharge tax is not required to be collected for
DOLI (Department of Labor & Industry). Requested to remove all state surcharge tax from septic
permits.
3. Requesting to remove "well & septic verification" charge for the City does not offer this service. These
type of inspections are done by a private inspector for a fee.
4. Increasing the fee for water heater inspections from $15 to $50 which is enabled by Minnesota Statute
16b.665 being repealed.
Building Inspections & Permitting
Air Conditioning Installations:
$75.00 (State Surcharge Add 50¢ $5.00 )
Air to Air Exchange Permit:
$75.00 State Surcharge Add 50¢ $5_00)
Basement Refinishing Permit:
$100.00 (State Surcharge Add 50¢ 5.00
Garage Furnace Permit:
$75.00 per unit (State Surcharge Add 50¢ $5_00)
Gas Fireplace Permit:
$75.00 per unit State Surcharge Add 50¢ $5_00)
Geo- thermal Heating Permit:
$75.00 (State Surcharge Add 50¢ $5.00)
Heating Installations:
Furnace /Air Combo
Boiler
In Floor Heating
Furnace
Water Heaters
$85.00 (State Surcharge Add 50¢ $5.00
$75.00 (State Surcharge Add 50¢ $5.00)
$50.00 (State Surcharge Add 50¢ $5.00)
$75.00 (State Surcharge Add 58¢ $5.00
$43:00 $50.00 (State Surcharge Add 50¢ $5.00
House Moving Permit:
$75.00
Lawn Sprinkler Permit:
$50.00 (State Surcharge Add 50¢ JLOO
e,
GENERAL PROVISIONS AND DEFINITIONS
Jurisdiction
The provisions of this Ordinance shall apply to the City of Andover.
Enforcement
The City Administrator or his /her designee shall have the authority to enforce the provisions of this
ordinance.
Interpretation
Interpretation of the provisions of this ordinance shall be held to be the minimum requirements and shall be
liberally construed in the favor of the governing body. A printed copy of this ordinance is available for
inspection by any person during regular hours of the City Clerk.
Adopted by the City Council of the City of Andover on this 1 st day of June, 2010.
ATTEST: CITY OF ANDOVER
Michelle Hartner, Deputy City Clerk
Michael R. Gamache, Mayor
Plumbing: (per fixture)
$10.00 (Minimum fee $70.00)
(State Surcharge Add 30¢ $5.00)
Re-roofing Permit:
$75.00 State Surcharge Add 30¢ $5.001
Septic System:
Pumping
$15.00
New Installation or Repair:
At Grade
$75.00 (State Surcharge remove 30¢)
Mound or Bed
$100.00 State Surcharge remove 30¢)
Siding Permit:
$75.00 State Surcharge Add 30¢ $5.00)
$3:09 (REMOVE WHOLE ITEM & FEE)
GENERAL PROVISIONS AND DEFINITIONS
Jurisdiction
The provisions of this Ordinance shall apply to the City of Andover.
Enforcement
The City Administrator or his /her designee shall have the authority to enforce the provisions of this
ordinance.
Interpretation
Interpretation of the provisions of this ordinance shall be held to be the minimum requirements and shall be
liberally construed in the favor of the governing body. A printed copy of this ordinance is available for
inspection by any person during regular hours of the City Clerk.
Adopted by the City Council of the City of Andover on this 1 st day of June, 2010.
ATTEST: CITY OF ANDOVER
Michelle Hartner, Deputy City Clerk
Michael R. Gamache, Mayor
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
ORDINANCE NO. SUMMARY
AN ORDINANCE AMENDING CITY CODE TITLE 1 -7 -3 OF THE CITY OF ANDOVER
STATUTORY AUTHORIZATION AND POLICY
Statutory Authorization
This ordinance is adopted pursuant to the authorization and policies contained in
Minnesota Statute 462.353 and Minnesota State Statute 326B.148 and 16B.665.
Policy
The purpose of adopting the amendment is to adopt the new state surcharge fees mandated
by the Minnesota State Statute 326B.148; and increasing the fee to $50 for inspecting
water heaters, which was enabled by Statute 16B.665 being repealed.
GENERAL PROVISIONS AND DEFINITIONS
Jurisdiction
The provisions of this ordinance shall apply to the City of Andover.
Enforcement
The Building Official or his/her designee shall have the authority to enforce the provisions
of this ordinance.
Interpretation
Interpretation of the provisions of this ordinance shall be held to be the minimum
requirements and shall be liberally construed in the favor of the governing body. A
printed copy of this ordinance is available for inspection by any person during regular
hours of the City Clerk.
Adopted by the City Council of the City of Andover on this 1 st day of June, 2010.
ATTEST:
Michelle Hartner, Deputy City Clerk
CITY OF ANDOVER
Michael R. Gamache, Mayor
-W
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN. US
TO: Mayor and Councilmembers
CC: Jim Dickinson, City Administrator / Finance Direct
FROM: Lee Brezinka, Assistant Finance Director
SUBJECT: 2009 Audit Presentation — HLB Tautges Redpath
DATE: June 1, 2010
INTRODUCTION
Peggy Moeller, CPA, an Audit Partner with the City's auditing firm, HLB Tautges Redpath, will be providing
a presentation to the City Council related to the City of Andover Comprehensive Annual Financial Report
(CAFR) as of December 31, 2009 and the corresponding Management Report.
A December 31, 2009 CAFR, the corresponding Management Report, a report on internal controls and a legal
compliance report are attached and will be the basis of Ms. Moeller's presentation.
DISCUSSION
The City is required to have an independent audit conducted annually. The 2009 Audit was conducted
throughout the months of January, February, March and April. The Finance Staff was very involved in the
audit process and enjoyed our excellent working relationship with HLB Tautges Redpath.
Ms. Moeller's presentation will touch on the highlights of the City's finances and provide suggestions for
improvement on reporting and internal controls. Of significant importance to the Council is that the City
received an "unqualified opinion" and only one reportable condition comment.
BUDGETIMPACT
No budget impact; the presentation, financial report, corresponding management report, report on internal
controls and report on legal compliance are provided as informational.
ACTION REQUIRED
The Andover City Council is requested to receive a presentation from HLB Tautges Redpath and receive the
City of Andover CAFR as of December 31, 2009, the corresponding Management Report, report on internal
controls and report on legal compliance.
Respectfully submitted,
Lee Brezinka
Y 0 F
O j r E
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.0 LAN DOVER. MN. US
TO:
CC:
FROM:
SUBJECT:
DATE:
Mayor and Council Members
Jim Dickinson, City Administrator
David D. Berkowitz, Director of Public Works /City Engineer
Discuss Petition/No Parking Request /148th Lane NW - Engineering
June 1, 2010
INTRODUCTION
The City Council is requested to discuss the attached petition requesting no parking along 148th
Lane NW.
DISCUSSION
Attached is a petition that has been received from the neighborhood south of Andover
Elementary requesting conditional no parking signs be place along 1481h Lane NW. The attached
letter from Shannon Wagner addresses the concern of parking along 148th Lane NW and provides
pictures.
If the petition and request is acceptable to the City Council a no parking resolution will be
brought back to the June 15, 2010 regular scheduled City Council meeting for approval.
ACTION REQUIRED
The City Council is requested to discuss the attached petition requesting no parking along 148t"
Lane NW and direct staff on how to proceed.
Respectfully submitted,
David D. Berkowitz /
Attachments: Petition, etter & Location Map
cc: Richard & Shannon Wagner, 1735 —148th Lane NW, Andover
Y 0 F
O j r L .
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
Date: 4 — Z9 — V 0
Andover City Council Members:
We, the undersigned, owners of real property in the following described area: .
ei r,e)vvj.I'M a E SicA� S (>m- Y-ouv\&
Do hereby petition that said portion of said area be posted no parkingi3 -
1n!
IiD" DO (-\M 'k 3' OD E- C) D DV-Y) S ?-- at
SIGNATURE OF OWNER ADDRESS YES NO
This petition was circulated by: WrAClPnImr
Address: G �] 35 ( 4 8 � LN N W d OV Q' r-
G:\ DATA\ STAFF \RHONDAA \FORMS\neighborhood petition.doc
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This petition was circulated by: WrAClPnImr
Address: G �] 35 ( 4 8 � LN N W d OV Q' r-
G:\ DATA\ STAFF \RHONDAA \FORMS\neighborhood petition.doc
Richard & Shannon Wagner
1735 148"' Lane NW * Andover, MN 55304
May 4, 2010
City of Andover
1685 Crosstown Boulevard N.W.
Andover, MN 55304
Dear Andover City Council Members:
Thank you for taking the time to review this petition. The following are a couple of concerns
regarding the issue of people using 148"' Lane NW as their own school drop off zone:
• The street ends up being so congested, with vehicles lining both sides, that trying to pass
through becomes a challenge. It even becomes dangerous trying to back out of our own
driveways. (photo below was on a slow day)
• There have been many times where a vehicle pulls to the side to park and wait for their
child(ren) and end up blocking our driveways:
• The safety of the children is at risk. Often times these kids enter into the street without
paying any attention to the fact that there are other vehicles driving through. Parents also
stop their vehicles in the middle of the road to talk to another parent in a vehicle that is
already parked.
• The home to the east of the walking path has complaints of all these kids cutting across
her yard to reach their parents' vehicle, trampling through her hastas that line her
driveway.
The attached petition has been signed by the residents of this block who are directly affected
by all of this unnecessary traffic. We do not agree that our block should be used as a school
drop off zone and that these parents should utilize the drop off/pick up process that the school
has in place.
Thank you again for your time.
Sincerely,
,�17Jcv�2u _
Shannon Wagner
1735 148th Lane NW
Andover, MN 55304
Encl: no parking petition
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO:
FROM:
SUBJECT
DATE:
Mayor and Council Members
Jim Dickinson, City Administrator
Schedule June Council Workshop
June 1, 2010
INTRODUCTION
The Council is requested to schedule a Council Workshop for the month of June for a number of
miscellaneous business items.
DISCUSSION
Potential agenda items fora general June workshop have been identified as follows:
1. Discuss Items Regulated by Acreage in the City Code
2. Continued Discussion - Community Education Partnership
3. Update on Single Family Rental Licensing Program
4. 2011 -2015 Capital Improvement Plan Discussion
5. 2010 Budget Implementation Progress Report
6. 2011 Budget Development Discussion
7. Other Topics
Other items may be added upon Council request or operational need.
ACTION REQUIRED
Schedule a June Council workshop, suggested dates are June 22nd, June 29th at 6:00 p.m., or
another date and time acceptable to the Council.
1 F 1
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO:
FROM:
SUBJECT:
DATE:
Mayor and Councilmembers
Jim Dickinson, City Administrator
Administrator's Report
June 1, 2010
The City Administrator will give a brief verbal update on various items of interest to the City
Council and to the residents at the meeting. Listed below are a few areas of interest:
1. Administration & City Department Activities
2. Update on Development Activity
3. Update on CIP Projects
4. Meeting reminders
Upon receipt of the meeting packet, if a member of the Council would like an update on a
particular item, please notify me so an adequate update can be made.
submitted,
Dickinson
City of
Andover, Minnesota
2009 Audit Review
June 1, 2010
Presenter:
Peggy A. Moeller, CPA
Member of HLB Intemational 1 Tautges Redpath, Ltd:
Reports Issued
Member of HLB International
Comprehensive Annual
Financial Report
♦ City's financial statements
♦ Independent auditor reports on
the fair presentation of the
financial statements
♦ "Clean opinion" on the 2009
financial statements
♦ The City .received the 2008
G FOA Certificate of Achievement
for Excellence in Financial
Reporting Program
Member of HLB International 3 Tautges Redpath, Ltd.
Report on Internal Control
♦ Consideration of internal control
as a basis for designing audit
procedures. No opinion on
internal control.
♦ One finding for 2009 — Credit card
approval.
Member of HLB International 4 Tautges Redpath, Ltd.
State Legal Compliance
Report
♦ Required by Minnesota Statute
§6.65
♦ OSA established a task force to
develop audit guide for legal
compliance
♦ Audit guide covers seven
categories
1) contracting and bidding
2) deposits and investments
3) conflicts of interest
4) public indebtedness
5) claims and disbursement
6) other miscellaneous provisions
7) tax increment financing
♦ One compliance finding —
Insufficient collateral
Member of HLB International 5 Tautges Redpath, Ltd.
Management Letter
+General Fund:
— Fund balance increased $153,377
during 2009.
Revenue
Expenditures
Increase (decrease) before other financing sources
Other financing sources:
Transfers in
Increase (decrease) in General Fund balance
Budget
Actual
Variance
$8,837,011
$8,494,869
($342,142)
9,104,146
8,538,422
565,724
(267,135)
(43,553)
223,582
196,930 196,930 -
($70,205) $153,377 $223,582
1
Member of HLB Intemational 6 Tautges Redpath, Ltd.
Management Letter
+General Fund:
— Fund balance at December 31, 2009
was $4,328,412.
— Working Capital Reserve:
• Approximately 83% of the General Fund's
revenue sources are from property taxes
and state aids. These revenue sources are
not received until the second half of the
fiscal year. As such, a working capital
reserve at December 31 is required to
finance operations for the first six months
of the year.
Member of HLB Intemational 7
Tautges Redpath, Ltd.
Management Letter
+General Fund:
• For the City of Andover, the
required working capital reserve is
computed as follows:
2010 General Fund budgeted expenditures
Recommended working capital reserve
(fifty percent of total)
$9,102,628
$4,551,314
• The current working capital reserve
in the General Fund is 42 %.
Member of HLB International $ "Tautges Redpath, Ltd.
Management Letter
♦ Bonded Debt
— The City has the following bond issues
outstanding at December 31, 2008 and 2009:
G.O. Public Facility Lease Revenue Bonds
G.O. Special Assessment Bonds
G.O. Tax increment Bonds
G.O. Certificates of indebtedness
G.O. Permanent Improvement Revolving Bonds
G.O. Capital Improvement Bonds
G.O. State Aid Bonds
Subtotal
Less refunded bonds paid by escrow
Net
December 31,
2008 2009
$50,565,000
3,015,000
3,275,000
1,525,000
3,755,000
3,155,000
1,760,000
67,050,000
$50,825,000
2,450,000
2,515,000
1,420,000
2,635,000
2,775,000
2,555,000
65,175,000
(22,945,000) (23,875,000)
$44,105,000 $41,300,000
— The City analyzes its debt position annually as
part of the budget and CIP process.
Member of HLB International 9 Tautges Redpath, Ltd.
Communication With Those
Charged With Governance
— Required Communication
• Audit firm responsibility under U.S.
audit standards.
• Planned scope and timing of audit
Significant audit results
• Difficulties encountered in
performing the audit (none)
• Corrected and uncorrected
misstatements
• Disagreements with management
(none)
• Management representations
• Consultations with other auditors
• Other audit findings and issues
Member ofHLBInternational 10 � Tautges Redpath, -Ltd,
Other Matters
—Other Matters
• 2009 property tax collection rate
was 99.7 %.
• The City will be required to
implement GASB Statement No. 54,
Fund Balance Reporting and Fund
Type Definition for the year ended
December 31, 2011.
Member of HLB lntemational .� Tautges Redpath, Ltd.
r
r< <
C I T Y O F
ND 06VE
DATE June 1, 2010
ITEMS GIVEN TO THE CITY COUNCIL
• #9. Year Ended December 31, 2009 Audit Presentation /HLB Tautges Redpath
- Administration
PLEASE ADDRESS THESE ITEMS AT THIS MEETING OR PUT THEM ON
THE NEXT AGENDA.
THANK YOU.
GISTAFRRHONDAMAGENMCC LIST.doc
7
1
CITY OF ANDOVER, MINNESOTA
AUDIT MANAGEMENT LETTER
' December 31, 2009
1
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' Audit Management Letter
I
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I
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Table of Contents
Table of Contents
ReportSummary .................................................... ...............................
2
Certificate of Achievement ..................................... ...............................
3
Government -Wide Financial Statements ............... ...............................
4
GeneralFund ......................................................... ...............................
11
GASB 54 — Fund Balance Reporting and Governmental Fund Type
Definitions will be effective for 2011.
18
Debt Service Funds ............................................... ...............................
19
I
Tautges Redpath, Ltd.
' Certified Public Accountants and Consultants
We have completed the 2009 audit of the City of Andover, Minnesota and have issued
our report thereon. Our Independent Auditor's Report is included in the City's
1 Comprehensive Annual Financial Report. This Audit Management Letter provides a
summary of audit results.
Thank you for the opportunity to serve the City. We are available to discuss this report
with you at your convenience.
i
To the Honorable Mayor and
Members of the City Council
'
City of Andover, Minnesota
We have completed the 2009 audit of the City of Andover, Minnesota and have issued
our report thereon. Our Independent Auditor's Report is included in the City's
1 Comprehensive Annual Financial Report. This Audit Management Letter provides a
summary of audit results.
Thank you for the opportunity to serve the City. We are available to discuss this report
with you at your convenience.
i
Roy /3 -lam Xle .
'
HLB TAUTGES REDPATH, LTD.
'
White Bear Lake, Minnesota
'
May 7, 2010
I
4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com
1 HLB TautgesHedpath, Ltd. isa member of Im International, a world wide organization of accounting firms and business advisors. I Equal Opportunity Employer
F
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' Audit Management Letter
I
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1
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Report Sul
Report Summary
Several reports are issued in conjunction with the audit. A summary is as follows:
REQUIRED REPORTS
Comprehensive Annual Financial
• Financial statements
• Unqualified ( "clean ")
Report (CAFR)
• Footnotes
opinion on the Financial
• Supplemental information
Statements
Report on Internal Control Over
Results of testing
• One compliance finding
Financial Reporting and on
• Internal controls over
• No internal control
Compliance and Other Matters
financial reporting
findings
• Compliance with laws,
regulations, contracts and
grants
State Legal Compliance Report
• Results of testing certain
One compliance finding
provisions of Minnesota
Statutes
Communication with Those
• Required Communications
Charged with Governance
DISCRETIONARY REPORTS
Audit Management Letter
Intended to be a working tool for
City Council
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Audit Management Letter Q
Certificate of Achievement
Certificate of Achievement for Excellence in Financial Reporting
The "Certificate of Achievement for Excellence in Financial Reporting" is an award a
program offered by the Government Finance Officers Association of the United States and
Canada (GFOA).
The City of Andover, Minnesota submitted their Comprehensive Annual Financial'l
Report (CAFR) to the GFOA and received the award for 2002 through 2008. The City of
Andover is one of 124 Minnesota entities receiving the award in 2008. We commend the
City on this achievement. The City is submitting the 2009 CAFR to the Certificate Program.
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1 Audit Management Letter
Government -Wide Financial Statements
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The government -wide financial statements of the City of Andover, Minnesota are
presented in Statements 1 and 2 of the 2009 Comprehensive Annual Financial Report. The
ifollowing comments relate to the Statement of Net Assets (Statement 1) and the Statement of
Activities (Statement 2).
Cash and Investments
Cash and investment balances of Minnesota cities are commonly restricted by statutory
requirements and long range financial planning objectives. The following schedule presents
' cash and investment balances by fund type:
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Cash and Investment Balances
$24,921,129 $26,746,280 $1,825,151
December 31,
Increase
Fund Type
2008
2009
(Decrease)
General
$3,309,939
$3,586,725
$276,786
Special Revenue
1,645,670
1,806,828
161,158
Debt Service
2,656,285
1,987,075
(669,210)
Capital Projects
13,909,894
14,580,675
670,781
Enterprise
3,299,931
4,542,444
1,242,513
Intemal Service
99,410
242,533
143,123
$24,921,129 $26,746,280 $1,825,151
Audit Management Letter
Government -Wide Financial Statements
Governmental accounting standards require the reporting of investments at fair value
(i.e., market value). Therefore, investment income consists of interest, dividends and the
change in market value of investments. Reporting investments at fair value results in greater
"swings" in investment earnings because of market changes.
Investment income of the City for 2008 and 2009 was as follows:
Interest and dividends
Market value change
Total
2008
2009
$2,129,713
$1,348,284
(243,191)
58,116
$1,886,522
$1,406,400
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Government -Wide Financial Statements
Property Taxes Receivable
A schedule of property tax activity for the past three years is as follows:
Delinquent taxes - January 1
Current levy
Total collectible
Collections
Less adjustment to County
Delinquent taxes - December 31
Total collections as a percent
of current levy
*Net of MVHC
2007
2008
2009
$153,260
$217,766
$275,365
8,907,580 *
9,761,417 *
10,190,844
9,060,840
9,979,183
10,466,209
8,829,697 * 9,689,439 * 10,162,699 *
(13,377) (14,379 ) (20,769)
$217,766 $275,365 $282,741
99.1% 99.3% 99.7%
As presented above, the City is experiencing a consistently solid collection rate for
property taxes. In addition to the $282,741 of delinquent taxes above, the City has $30,247
in delinquent tax increments receivable. See later discussion of tax increments (page 7).
The Minnesota Property Tax System is complex with the number of different classes of
property defined in State Statutes. However, the formulas are based on a simple equation,
which is as follows:
Market Value x Class Rate = Tax Capacity
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Audit Management Letter
C'�nvarnmant -Wirin Finnnrinl StntPmPntq
Market value is the starting point in the property tax equation and in theory is
consistently applied to all properties. Class rate is the mechanism used to allocate property
taxes on a basis other than market value.
Tax Increments
A schedule of tax increment revenues by district is as follows:
TIF District Fund TIF District
1-1,1-2 3505, 3506, 4501 TIF Refunding Bonds of 2003B and 2004B
1 -3 4510 Tax Increment Projects
14 4502 Tax Increment Projects
TIF District 1 -3, Fund 4510, is a pass - through, pay -as- you -go district.
The City has 4 active tax increment districts. Reporting requirements implemented by
the Office of the State Auditor (OSA) require reporting of tax increment activity by district.
Delinquent
2009 Collection
Balance
Current
Delinquent
12/31/09
$1,757,513
$35,942
$23,926
132,995
-
-
20,387
4,506
6,321
$1,910,895
$40,448
$30,247
TIF District 1 -3, Fund 4510, is a pass - through, pay -as- you -go district.
The City has 4 active tax increment districts. Reporting requirements implemented by
the Office of the State Auditor (OSA) require reporting of tax increment activity by district.
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1 Audit Management Letter
Government -Wide Financial Statements
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Bonded Debt
' The City has the following bond issues outstanding at December 31, 2009 and 2008:
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G.O. Revenue Bonds
G.O. Special Assessment Bonds
G.O. Tax Increment Bonds
G.O. Certificates /Capital Notes
G.O. Permanent Improvement Revolving Bonds
G.O. Capital Improvement Bonds
G.O. State Aid Bonds
Less amount to be paid by escrow:
Public Facility Lease Revenue Bonds
Water Revenue Bonds
State Aid Street Bonds
Net
December 31,
2008 2009
$50,565,000 $50,825,000
3,015,000
2,450,000
3,275,000
2,515,000
1,525,000
1,420,000
3,755,000
2,635,000
3,155,000
2,775,000
1,760,000
2,555,000
67,050,000 65,175,000
(16,455,000) (16,455,000)
(6,490,000) (6,490,000)
(930,000)
$44,105,000 $41,300,000
The tax increment bond issues will be repaid by increments generated by the City's tax
increment districts. The Permanent Improvement Revolving Bonds will be paid by special
' assessments.
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The City issued the $10,000,000 Public Facility Lease Revenue Refunding Bonds of
2006 to advance refund $9,755,000 of outstanding 2004 Series Bonds. The City issued the
$6,865,000 Public Facility Lease Revenue Refunding Bonds of 2007 to advance refund
$6,700,000 of outstanding 2004 Series Bonds. The City is responsible for the debt service of
the refunded bonds through the crossover date (February 1, 2014) and the debt service of the
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Audit Management Letter
Government -Wide Financial Statements
refunding bonds after the crossover date. The debt service of the refunding bonds before the
crossover date is payable from the escrow account. a
The City issued the $6,570,000 G.O. Water Revenue Bonds, Series 2007B to advance
refund $6,490,000 of outstanding 2002 Series Bonds. The City is responsible for the debt
service of the refunded bonds through the crossover date (August 1, 2012) and the debt
service of the refunding bonds after the crossover date. The debt service of the refunding
bonds before the crossover date is payable from the escrow account.
The City issued the $955,000 G.O. State Aid Streets Refunding Bonds, -Series 2009A to C
advance refund $930,000 of outstanding 2001B Series Bonds. The City is responsible for the
debt service of the refunded bonds through the crossover date (February 1, 2010) and the debt
service of the refunding bonds after the crossover date. The debt service of the refunding
bonds before the crossover date is payable from the escrow account. Q
The financial statements present each bond issue and the escrow account assets
pursuant to GASB Statement No. 7. The effect on the financial statements is to report greater
debt than, of substance, the City will be responsible for paying. Q
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Government -Wide Financial Statements
' Other Post Employment Benefits (OPEB)
The City implemented GASB Statement No. 45, Accounting and Financial Reporting
by Employers for Post Employment Benefits Other Than Pensions, during 2008. The City is
required by State Statute to allow retirees to continue participation in the City's group health
insurance plan. The retiree is required to pay 100% of their premium cost which is based on
a blended rate. Since the projected claims costs for retirees exceed the blended premium paid
by retirees, the retirees are receiving an implicit rate subsidy (benefit).
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The City is currently funding the post employment benefits on a pay -as- you -go basis.
The City's 2009 annual required contribution was $52,340 of which $14,615 was contributed
resulting in an OPEB liability of $80,191 at December 31, 2009.
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Audit Management Letter
General Fund
GENERAL FUND
The General Fund of the City is maintained to account for the current operating and Q
capital outlay expenditures common to all cities. These basic services include (but are not
limited to) public safety, public works, parks and recreation and general government.
A history of major revenue sources is as follows: C
Local Government Aid (LGA) for the City was eliminated beginning in 2003. The W
second half of market value homestead credit was unallotted by the State in 2008. Current p
year market value homestead credit of $350,938 was unalloted by the State in 2009.
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State Aids
Property Taxes
All Other Revenue
Total Revenue
Year
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
1999
$849,429
15%
$3,125,776
55%
$1,725,890
30%
$5,701,095
100%
2000
948,259
15%
3,571,186
55%
1,936,635
30%
6,456,080
100%
2001
1,074,805
15%
3,982,174
58%
1,867,945
27%
6,924,924
100%
2002
1,005,219
16%
3,782,334
58%
1,708,234
26%
6,495,787
100%
2003
330,845
5%
4,286,838
68%
1,665,554
27%
6,283,237
100%
2004
372,550
5%
4,541,227
65%
2,084,201
30%
6,997,978
100%
2005
424,634
6%
4,550,918
64%
2,163,539
30%
7,139,091
100%
2006
478,795
6%
5,324,649
70%
1,809,320
24%
7,612,764
100%
2007
710,459
8%
5,776,653
67%
2,089,632
25%
8,576,744
100%
2008
555,758
6%
6,249,011
73%
1,811,108
21%
8,615,877
100%
2009
454,546
5%
6,588,601
78%
1,451,722
17%
8,494,869
100%
Local Government Aid (LGA) for the City was eliminated beginning in 2003. The W
second half of market value homestead credit was unallotted by the State in 2008. Current p
year market value homestead credit of $350,938 was unalloted by the State in 2009.
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General Fund
A graph of the 2009 and 2008 revenue is as follows:
$7,000,000
$6,500,000
$6,000,000
$5,500,000
$5,000,000
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$ -
Cenefal property
Licenses and
lntergovemmental
Charges for
Fines
rnvestmemt inwme
M
taxes
permits
services i
192009
$6,588,601
$291,903
$595,002
$701,289
$110,779
$76,772
■2008
$6,249,011
$525339
$709251
$772430
$104930
$137,966
Detail of the 2009 revenue is presented in Statements 4 and 10 of the Comprehensive
Annual Financial Report.
Audit Management Letter
w graph om+ and mm expenditures §afollows:
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General Fund
Detail othe m% expenditures & presented 6 Statements 4 and ±othe
Comprehensive Annual Financial Report.
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Detail othe m% expenditures & presented 6 Statements 4 and ±othe
Comprehensive Annual Financial Report.
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General Fund
The fund balance of the General Fund increased by $153,377 in 2009 as follows:
Revenues:
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Recycling
Unallocated
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources:
Transfers in
Net change in fund balance
2009
2,429,722
2,161,367
Over
Final
4,005,406
(Under)
Budget
Actual
Budget
887,749
$6,651,795
$6,588,601
($63,194)
442,580
291,903
(150,677)
828,689
595,002
(233,687)
620,022
701,289
81,267
95,375
110,779
15,404
115,000
76,772
(38,228)
83,550
130,523
46,973
8,837,011
8,494,869
(342,142)
2,429,722
2,161,367
(268,355)
4,131,341
4,005,406
(125,935)
1,536,727
1,428,549
(108,178)
887,749
835,636
(52,113)
98,607
85,527
(13,080)
20,000
19,540
(460)
-
2,397
2,397
9,104,146
8,538,422
(565,724)
(267,135) (43,553) 223,582
196,930 196,930 -
($70,205) $153,377 $223,582
Audit Management Letter
General Fund
The City's December 31, 2009 General Fund balance totaled $4,328,412. The City's
General Fund balance has been as follows for the past ten years:
$4,500,000
$4,000.000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
General Fund Balance
$0
2000 I 2001 2002 2003 2004 2005 2006 2007 1 2008 2009
®Fund Balance 1 $2,682,786 1 $3,420,072 1 $2,814,972 1 $2,593,027 1 $3,302,565 1 $3,202,477 $3,392,813 $3,890,460 $4,175,035 $4,328,412
Audit Management Letter
General Fund
The fund balance at December 31, 2009 has been reserved or designated as follows.
General Fund
Fund Balance Designations
Designation
Amount
Reserved for inventory
$103,711
Reserved for prepaid items
103,804
Total reserved
207,515
Designated for working capital:
Designated for snow emergency
65,000
Designated for public safety
65,000
Designated for facility management
65,000
Designated for information technology
65,000
Designated for working cash flow
3,860,897
Total designated for working capital
4,120,897
Total reservations and designations
$4,328,412
The designations are planning for emergency expenditures so that the City can maintain
a consistent tax rate.
Audit Management Letter
General Fund
Working Capital Reserve
As previously noted, approximately 83% of the General Fund's revenue sources are
from property taxes and state aids. These revenue sources are not received until the second
half of the fiscal year. As such, a working cash flow reserve at December 31 is required to
finance operations for the first six months of the year. For the City, the required working
capital reserve is computed as follows:
2010 General Fund budgeted expenditures $9,102,628
Recommended working cash flow reserve
(fifty percent of total) $4,551,314
The current working capital reserve in the General Fund is 42 %.
A summary of the purposes of General Fund reserve balances is as follows:
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Audit Management Letter
General Fund
GASB 54 — Fund Balance Reporting and Governmental Fund Type Definitions
GASB Statement No. 54 is effective for the year ending December 31, 2011. This
standard changes the reporting of fund balance from the current categories of reserved,
designated and unreserved/undesignated to five categories based on the constraint imposed
on the use of the resources. We recommend that the City prepare for implementation of this
standard by reviewing the current fund balance policy to ensure that the following are
addressed:
• Minimum fund balance
• Flow assumptions
• Delegation of authority to assign
' • Fund balance commitment
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Audit Management Letter
Debt Service Funds
DEBT SERVICE FUNDS
The financial statements for the EDA Public Facility Lease Revenue Refunding Bonds
of 2006 and EDA Public Facility Lease Revenue Refunding Bonds of 2007 are presented in
Statements 3 and 4 and the combining financial statements for the nonmajor Debt Service
Funds are presented in Statements 16 and 17 of the 2009 Comprehensive Annual Financial
Report. Debt Service Funds are a type of governmental fund to account for the accumulation{
of resources for the payment of interest and principal on debt (other than Enterprise Fund W
debt). Q
Current governmental reporting standards do not provide for the matching of long -term
debt with its related financing sources. Although this information can be found in the City's
Comprehensive Annual Financial Report, it is located in several separate sections of the a
Comprehensive Annual Financial Report. The following schedule extracts information from
these sections of the Comprehensive Annual Financial Report to provide an overview a
analysis of long -term debt and its related funding.
The reader is cautioned that 1) future interest revenue from assessments and a
investments, and 2) future interest expense on bonded debt, is not included in the following
schedule.
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Fund
Description
General Obligation Bonds:
EDA Public Facility Lease Revenue Bonds of 2004
EDA Public Facility Lease Revenue Bonds of 2006
EDA Public Facility Lease Revenue Bonds of 2007
Total general obligation bonds
Special Assessment Bonds:
G.O. Improvement Bonds of 2005A
Tax Increment Bonds:
G.O. TIF Refunding Bonds of 2003B
G.O. TIF Refunding Bonds of 2004B
Total tax increment bonds
Certificates of Indebtedness:
G.O. Equipment Certificate of 2006D
G.O. Equipment Certificate of 2007A
G.O. Equipment Certificate of 2008A
G.O. Equipment Certificate of 2009A
Total certificates of indebtedness
Permanent Improvement Revolving Bonds:
G.O. PIR Bonds of 2003A
G.O. PIR Bonds of 2006A
Total permanent improvement revolving bonds
Debt Service Funds
December 31, 2009 Final
Fund Deferred Outstanding Maturity
Balance Revenues Total Debt Date
$613,991
$28,563
$642,554
$18,630,000
02/01/14
9,932,006
-
9,932,006
10,000,000
02/01/34
6,822,086
-
6,822,086
6,865,000
02/01134
17,368,083
28,563
17,396,646
35,495,000
955,000 02/01/15
Total state aid bonds
1,158,866
0
908,609
412,329
1,320,938
2,450,000
02/01/11
9,567
-
Totals -All Debt Service Funds
12,631
-
12,631
250,000
08/01/10
21,020
14,594
35,614
2,265,000
02/01/13
33,651
14,594
48,245
2,515,000
236,177
-
236,177
160,000
02/01/10
238,236
6,445
244,681
395,000
02/01/11
171,805
5,239
177,044
480,000
02/01/12
140,853
4,289
145,142
385,000
02/01/12
787,071
15,973
803,044
1,420,000
15,834
-
15,834
820,000
02/01/10
13,364
-
13,364
1,815,000
02101/14
29,198
0
29,198
2,635,000
Capital Improvement Bonds:
G.O. Capital Improvement Bonds of 2004A
13,861
11,023
24,884
2,775,000 02/01/17
State Aid Bonds of 2001 B
209,451
-
209,451
1,600,000 02/01/10
State Aid Refunding Bonds 2009A
949,415
-
949,415
955,000 02/01/15
Total state aid bonds
1,158,866
0
1,158,866
2,555,000
Open Space Referendum Bonds
6,143
3,424
9,567
-
Totals -All Debt Service Funds
$20,305,482
$485,906
$20,791,388
$49,845,000
• Tax increment collections are subject to future valuations within the District.
The City analyzes its debt position annually as part of the budget and CIP process and
the City's fiscal agent prepares a refunding/call review with each new issuance. We
recommend the City continue to annually review debt service requirements and long -term
funding for the above bond issues.
Audit Management Letter
Debt Service Funds
The following decision chart prompts questions to further evaluate a fund's financial
position:
Condition A
Fund balance plus
deferred revenue
meets or exceeds
bonds payable.
Cautions
00
I. Is the City experiencing favorable
collection rates for special assess-
ments?
2. Are anticipated investment interest
rates earned on prepayments ade-
quate to replace assessment interest?
3. Is the timing of receipts sufficient to
meet bonded debt payments as
they become due?
4. Are significant portions of assess-
ments not scheduled for collection
(green acres, tax forfeit, etc.)?
5. Is arbitrage or negative arbitrage
an issue?
The debt service fund
is clearly adequately
funded. Plan for eventua
use of surplus.
Conclusion 1
Condition B
Fund balance plus
deferred revenue
is less than
bonds payable.
IQuestions
1. Are sufficient future assets
scheduled (such as property taxes)
to meet bonded debt payments?
2. Are cash assets sufficient to
generate investment earnings?
3. Are transfers or other funding
sources available?
4. Are there future assets to pledge
such as assessments, MSA allot-
ments, etc.?
The debt service fund is
clearly not adequately
funded. Plan for altern-
ative funding (taxes,
transfers, other sources).
Conclusion 2
Variables and possible
outcomes are too diverse.
Prepare projections to
analyze possible
scenarios and options.
Conclusion 3
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Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
To the Honorable Mayor and
Members of the City Council
City of Andover, Minnesota
We have audited the financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of
Andover, Minnesota (the City) for the year ended December 31, 2009, and have issued our report
thereon dated May 7, 2010. Professional standards require that we provide you with information
about our responsibilities under generally accepted auditing standards and Government Auditing
Standards, as well as certain information related to the planning scope and timing of our audit.
We have communicated such information in our letter to you dated October 20, 2009.
Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Results
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies
was not changed during 2009. We noted no transactions entered into by the City during the year
for which there is a lack of authoritative guidance or consensus. All significant transactions have
been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's knowledge and experience about past and current
events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility
that future events affecting them may differ significantly from those expected. The most
sensitive estimate affecting the financial statements was management's estimate of the net OPEB
obligation which is based on the OPEB actuarial study. We evaluated the key factors and
assumptions used to develop the estimate for the net OPEB obligation in determining that it is
reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of the significance
to financial statement users. The City does not have any particularly sensitive disclosures in its
financial statements.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com
He Tautges refrain, Ltd is a member of Im International, a world wide organization of accounting firms and business advisors. I Equal Opportunity Employer
City of Andover, Minnesota
Communication with Those Charged with Governance
Page 2
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management. The attached schedule summarizes uncorrected misstatements of the financial
statements. Management has determined that their effects are immaterial, both individually and
in the aggregate, to the financial statements taken as a whole. There were no misstatements
detected as a result of audit procedures that were corrected by management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as
a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction
that could be significant to the financial statements or the auditor's report. We are pleased to
report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated May 7, 2010.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the City's financial statements or
a determination of the type of auditor's opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles
and auditing standards, with management each year prior to retention as the City's auditors.
However, these discussions occurred in the normal course of our professional relationship and
our responses were not a condition to our retention.
City of Andover, Minnesota
Communication with Those Charged with Governance
Page 3
Closing
This report is intended solely for the information and use of the City of Andover,
Minnesota's management and City Council, and is not intended to be, and should not be, used by
anyone other than these specified parties.
HLB TAUTGOES REDPATH, LTD.
White Bear Lake, Minnesota
May 7, 2010
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Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Andover, Minnesota
We have audited the financial statements of the governmental activities, the business -type
activities, each major fund and the aggregate remaining fund information of the City of
Andover, Minnesota, as of and for the year ended December 31, 2009, which collectively
comprise the City of Andover, Minnesota's basic financial statements, and have issued our
report thereon, dated May 7, 2010. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Andover, Minnesota's
internal control over financial reporting as a basis for designing our auditing procedures for
the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City of Andover, Minnesota's internal
control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City of Andover, Minnesota's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in internal control over financial reporting that might be deficiencies, significant
4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com
HLB Tautges Helluth, Ltd. is a member of E International, a world -wide organization of accounting firms and business advisors. I Equal Opportunity Employer
City of Andover, Minnesota
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters
Page 2
deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over financial reporting that we consider to be material weaknesses, as defined above.
However, we identified a deficiency in internal control over financial reporting, described in
the accompanying Schedule of Findings and Responses as finding 2009 -1 that we consider to
be a significant deficiency in internal control over financial reporting. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough merit attention by those charged with
governance.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Andover, Minnesota's
financial statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
We noted certain matters that we reported to management of the City of Andover, Minnesota in a
separate letter dated May 7, 2010.
The City of Andover, Minnesota's response to the finding identified in our audit is described in the
accompanying Schedule of Findings and Responses. We did not audit the City of Andover,
Minnesota's response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of the City of Andover,
Minnesota's management, City Council, and others within the entity, and is not intended to
be, and should not be, used by anyone other than these specified parties.
ROY05 7cu* 064e,� j V-&
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
May 7, 2010
CITY OF ANDOVER, MINNESOTA
Schedule of Findings and Responses
For The Year Ended December 31, 2009
2009 -1 Credit Card Approval
Criteria: Proper approval of credit card purchases is a key component of solid internal
controls. The City's approval process requires both department head approval and
Assistant Finance Director approval for all credit card purchases.
Condition: Audit procedures detected that two of the eighteen credit card purchases
tested lacked evidence of Assistant Finance Director's approval. The credit card
purchases totaled $228.59 and were both made by the same employee.
Cause: Unknown.
Effect: When credit card purchases are not properly approved, there is an increased risk
that errors or fraud could occur and not be detected in a timely manner.
Recommendation: We recommend that the City follow existing procedures to ensure all
credit card purchases are properly approved.
Views of Responsible Officials and Corrective Action Plan: The City reviewed the
process and feels that this is a remote instance of a signature being missed. All 18 credit
card purchases for-this particular accounts payable check had the necessary departmental
approvals, but two were missing the secondary approval. Staff will continue to review
existing procedures and make improvements where necessary.
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON COMPLIANCE WITH MINNESOTA
LEGAL COMPLIANCE AUDIT GUIDE FOR LOCAL GOVERNMENTS
To the Honorable Mayor and
Members of the City Council
City of Andover, Minnesota
We have audited the basic financial statements of the City of Andover, Minnesota, as of and
for the year ended December 31, 2009, and have issued our report thereon dated
May 7, 2010.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America, and the provisions of the Minnesota Legal Compliance Audit
Guide for Local Government promulgated by the State Auditor pursuant to Minnesota
Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records
and such other auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers seven
categories of compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, claims and disbursements, miscellaneous
provisions, and tax increment financing. Our study included all of the listed categories.
The results of our tests indicate that for the items tested, the City of Andover, Minnesota
complied with the material terms and conditions of applicable legal provisions, except as
noted in finding 2009 -2.
This report is intended solely for the information and use of the City of Andover,
Minnesota's management, City Council, and others within the entity, and is not intended to
be, and should not be, used by anyone other than these specified parties.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
May 7, 2010
4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com
HLB Tautges eedpath, Ltd. is a member of Im International, a world -wide organization of accounting firms and business advisors. I Equal Opportunity Employer
CITY OF ANDOVER, MINNESOTA
Schedule of Findings and Responses
For The Year Ended December 31, 2009
2009 -2: Deficiencies in collateral for deposits
Criteria: Minnesota Statute 118A provides certain specific collateral requirements for
deposits as follows:
M.S. 118A.03 When and What Collateral Required. Subdivision 1. For deposits
beyond insurance. To the extent that funds deposited are in excess of available federal deposit
insurance, the government entity shall require the financial institution to furnish collateral security
or a corporate surety bond executed by a company authorized to do business in the state.
Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral in lieu
of a corporate surety bond:
(1) United States government treasury bills, treasury notes, treasury bonds;
(2) issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;
(3) general obligation securities of any state or local government with taxing powers which is
rated "A" or better by a national bond rating service, or revenue obligation securities of any state
or local government with taxing powers which is rated "AA" or better by a national bond rating
service;
(4) irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's
Investors Service, Inc., or Standard & Poor's Corporation; and
(5) time deposits that are fully insured by the Federal Deposit Insurance Corporation.
Subd. 3. Amount. The total amount of the collateral computed at its market value shall be
at least ten percent more than the amount on deposit plus accrued interest at the close of the
business day. The financial institution may furnish both a surety bond and collateral aggregating
the required amount.
Subd. 4. Assignment. Any collateral pledged shall be accompanied by a written assignment
to the government entity from the financial institution. The written assignment shall recite that,
upon default, the financial institution shall release to the government entity on demand, free of
exchange or any other charges, the collateral pledged. Interest earned on assigned collateral will
be remitted to the financial institution so long as it is not in default. The government entity may
sell the collateral to recover the amount due. Any surplus from the sale of the collateral shall be
payable to the financial institution, its assigns, or both.
Subd. 5. Withdrawal of excess collateral. A financial institution may withdraw excess
collateral or substitute other collateral after giving written notice to the governmental entity and
receiving confirmation. The authority to return any delivered and assigned collateral rests with the
government entity.
Subd. 6. Default. For purposes of this section, default on the part of the financial institution
includes, but is not limited to, failure to make interest payments when due, failure to promptly
deliver upon demand all money on deposit, less any early withdrawal penalty that may be required
in connection with the withdrawal of a time deposit, or closure of the depository. If a financial
institution closes, all deposits shall be immediately due and payable. It shall not be a default under
this subdivision to require prior notice of withdrawal if such notice is required as a condition of
withdrawal by applicable federal law or regulation.
Subd. 7. Safekeeping. All collateral shall be placed in safekeeping in a restricted account at
a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other
CITY OF ANDOVER, MINNESOTA
Schedule of Findings and Responses
For The Year Ended December 31, 2009
financial institution that is not owned or controlled by the financial institution furnishing the
collateral. The selection shall be approved by the government entity.
HIST: 1996 c 399 art 1 s 4
Condition: At December 31, 2009, the City of Andover, Minnesota held CDs at 1St Regents
Bank for $2,119,060. Deposits up to $250,000 are insured by the FDIC. Deposits require
collateral of at least ten percent more than the amount on deposit in excess of that covered by
FDIC insurance. The collateral required was $2,055,966 ($1,869,060 x 110 %). Collateral in
the amount of $1,985,808 was provided, resulting in a collateral deficiency of $70,158.
Cause: Unknown.
Effect: The effect of noncompliance is not determinable.
Recommendation: We recommend the City obtain sufficient collateral to comply with
Minnesota Statute 118A.03.
Views of Responsible Officials and Corrective Action Plan: As part of the annual audit,
the City was made aware that it was under collateralized with one of the institutions that
the City holds investment deposits. Upon investigation, while the City's investments
were covered by pledged securities, we concur that the City was under collateralized at 1St
Regents Bank on December 31, 2009, the pledge was at 106.2% rather than at the
required 110 %.
The City has contacted 1" Regents Bank and discussed the situation. 1St Regents Bank
concurs with the investigation, and we both believe that while we both have in place good
controls to assure that the correct amount is pledged, this oversight was remote and that
each side will extend further due diligence to assure this does not happen again.
- This page intentionally left blank -
e'
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755 -5100
FAX (763) 755 -8923 . WWW.CI.ANDOVER.MN.US
Comprehensive Annual Financial Report
of the
City of Andover, Minnesota
For the Year Ended
December 31, 2009
Prepared By: Finance Department
City of Andover
CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
I. INTRODUCTORY SECTION
Letter of Transmittal 2
Organization 10
Organizational Chart 11
Certificate of Achievement 12
IL FINANCIAL SECTION
Independent Auditor's Report
14
Management's Discussion and Analysis
16
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets
Statement 1
29
Statement of Activities
Statement 2
30
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement 3
32
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Statement 4
34
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds
Statement 5
37
Statement of Net Assets - Proprietary Funds
Statement 6
38
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary Funds
Statement 7
40
Statement of Cash Flows - Proprietary Funds
Statement 8
42
Statement of Fiduciary Net Assets - Fiduciary Funds
Statement 9
44
Notes to Financial Statements
45
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Statement 10
80
Schedule of Funding Progress - Other Post Employment Benefits Plan
Statement 11
82
Notes to Required Supplementary Information:
Budgets
83
Modified Approach for City Streets and Trails Infrastructure Capital Assets
83
Combining and Individual Fund Statements and Schedules:
Nonmaj or Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds
Statement 12
87
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmaj or Governmental Funds
Statement 13
88
CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Nonmajor Special Revenue Funds:
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 90
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds Statement 15 92
Nonmajor Debt Service Funds:
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 16 96
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds Statement 17 98
Nonmajor Capital Projects Funds:
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 18 102
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds Statement 19 104
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
EDA General
Statement 20
106
Community Development Block Grant
Statement 21
107
Community Center
Statement 22
108
Drainage and Mapping
Statement 23
109
LRRWMO
Statement 24
110
Forestry
Statement 25
111
Trail and Transportation
Statement 26
112
Right -of -Way Management/Utility
Statement 27
113
Capital Equipment Reserve
Statement 28
114
Charitable Gambling
Statement 29
115
Construction Seal Coating
Statement 30
116
Internal Service Funds:
Combining Statement of Net Assets - Internal Service Funds
Statement 31
118
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Internal Service Funds
Statement 32
119
Combining Statement of Cash Flows - Internal Service Funds
Statement 33
120
Agency Funds:
Combining Statement of Net Assets - Fiduciary Funds
Statement 34
122
Combining Statement of Changes in Assets and Liabilities - Fiduciary Funds
Statement 35
123
Supplementary Financial Information:
Combined Schedule of Indebtedness Exhibit 1 126
Schedule of Tax Capacity Rates and Levies Exhibit 2 128
Schedule of Deferred Tax Levies - General Obligation Bonds Exhibit 3 129
Schedule of Fund Transfers Exhibit 4 130
CITY OF ANDOVER, MINNESOTA
TABLE OF CONTENTS
Page
Reference
No.
III. STATISTICAL SECTION
Net Assets by Component - Last Five Fiscal Years
Table 1
134
Changes in Net Assets - Last Five Fiscal Years
Table 2
135
Fund Balances - Governmental Funds - Last Five Fiscal Years
Table 3
137
Changes in Fund Balances - Governmental Funds - Last Five Fiscal Years
Table 4
138
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years
Table 5
139
Property Tax Rates - Per $1,000 of Assessed Tax Capacity Value - Years 2001 through 2010
Table 6
140
Property Tax Levies and Collections - Last Five Fiscal Years
Table 7
141
Principal Taxpayers - Current Year and Ten Years Ago
Table 8
142
Estimated Market Values and New Construction - Last Ten Fiscal Years
Table 9
143
Special Assessment Levies and Collections - Last Ten Fiscal Years
Table 10
144
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita -
Last Ten Fiscal Years
Table 11
145
Computation of Direct and Overlapping Debt
Table 12
146
Computation of Legal Debt Margin - Last Five Fiscal Years
Table 13
147
Pledged- Revenue Coverage - Last Five Fiscal Years
Table 14
148
Outstanding Debt by Type - Last Five Fiscal Years
Table 15
149
Demographic and Economic Statitistics - Last Five Years
Table 16
150
Principal Employers - Current Year and Ten Years Ago
Table 17
151
Full Time Equivalent Employees - City Government Employees by Function / Program -
Last Five Fiscal Years
Table 18
152
Operating Indicators by Function / Program - Last Five Years
Table 19
153
Capital Asset Statistics by Function / Program - Last Five Years
Table 20
154
I. INTRODUCTORY SECTION
y
II �1
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755 -5100
FAX (763) 755 -8923 . WWW.CI.ANDOVER.MN.US
May 7, 2010
To the Honorable Mayor and City Council
City of Andover
1685 Crosstown Blvd. NW
Andover, Minnesota 55304
Dear Honorable Mayor and Council Members:
The Comprehensive Annual Financial Report is submitted in conformance with all applicable governing laws and regulations.
The following has set the standards forth:
*Andover City Policy and Code
*The State Auditor, State of Minnesota
*Government Finance Officers Association
*Governmental Accounting Standards Board
RESPONSIBILITY. Responsibility for both the accuracy of the presented data and the completeness of the financial statements
including all disclosures rests with the City. We believe the data, as presented, is accurate in all material aspects. This report has
been presented in a manner designed to fairly set forth the financial position and results of operations as measured by the
financial activity of its various funds.
FINANCIAL STATEMENT FORMAT. This Comprehensive Annual Financial Report is presented in three main sections:
L Introductory
II. Financial
III. Statistical
The Introduction includes a list of the City's principal officials as of December 31, 2009, the table of contents, the public
officials, organizational chart, and this Letter of Transmittal. The Financial Section includes: (1) independent auditor's report;
(2) management's discussion and analysis; (3) government wide and fund financial statements; (4) notes to the financial
statements; (5) required supplementary information; (6) the combining statements, individual fund statements; and, (7) the
supplemental information. The Statistical Section includes tables and reports of various economic, social, financial and fiscal
data designed to reflect trends and ratios.
Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter
of transmittal is designed to complement the MD &A and should be read in conjunction with it. The City of Andover's MD &A
can be found immediately following the report of the independent auditors.
REPORTING ENTITY. All City funds, departments, commissions, and other organizations for which the City of Andover is
financially accountable are presented within the Comprehensive Annual Financial Report. The Andover Firefighters' Relief
Association does not meet the established criteria for inclusion in the reporting entity, and accordingly are excluded from this
report.
GENERAL INFORMATION. The city we know today as Andover was first organized in 1857 under the name "Round Lake
Township." However, in 1860 the name was changed to "Grow Township" in honor of Senator Galusha A. Grow of
Pennsylvania. Senator Grow spoke at a political campaign in Anoka that year, and the town name was changed to reflect Senator
Grow because of his strong advocacy of the Union cause. At that time, the population was 330 and included the geographical
area we know today as Ham Lake. In fact, the area of Ham Lake was considered a part of Grow Township until 1871.
In 1972, the Grow Township Board of Supervisors recognized that the town was growing at a very rapid rate. They felt a village
form of government would provide better services to the community. Board supervisors then voted in favor of proceeding with
the incorporation process. The board voted to submit a new name for the village. "Andover Village" was chosen because the
name Andover had historical interest. The historical interest, we believe, came from the Andover train station.
To the Honorable Mayor and City Council
City of Andover, Minnesota
You may have heard the popular "train myth" about how Andover received its name. The myth states that a train tipped over in a
swamp, and an eyewitness, relaying the incident, said it "went over and over," thereby naming the city "Andover." However,
research reveals that the name Andover first appeared in an article dated March 14, 1899 in the Anoka Couno� Union Newspaper
- before train tracks were ever built in the city.
The article stated that the Eastern Minnesota line of the Great Northern Railway was in the process of constructing railroad tracks
from the Coon Creek Cut -off to the North. The railway announced that new railroad stations with mathematical precision were to
be located five miles apart from each other. The new stations (from Coon Creek to the North, along the new railroad line) were
to be named Andover, Cedar, Bethel, Isanti, Cambridge, Stanchfield, Braham, Grasston, Cornell, and Brook Park. On July 4,
1899, the first train passed through the Andover Station. Where the railway came up with the name Andover still remains
unknown.
Andover Village was established in 1972 and then became the City of Andover, a city of the fourth class, in 1974. Today the
City of Andover's population exceeds 20,000, classifying it as a second class city.
The City of Andover as it exists today consists of 23,040 acres. Andover has a population estimated at 31,250. A rapidly
growing suburb of the northern metropolitan area, the City of Andover is approximately sixteen miles from Minneapolis.
SERVICES PROVIDED. The City of Andover provides various services to the residents in the community. The current
services are:
General Government:
Protective inspection Animal control
Fire protection
Mayor and City council
Financial administration
Informationsystems
Newsletter
Elections
Facility management
City clerk
Assessing
Engineering
Administration
Legal
Risk management
Human resources
Planning and zoning
Public Safety
Police
Protective inspection Animal control
Fire protection
Civildefense
Public Works:
Streets and highways
Street signs Traffic signals
Snow and ice removal
Central equipment maintenance Water maintenance
Street lighting
Sanitation:
Storm sewers
Sanitary sewer maintenance
Parks and Recreation
Recycling
GOVERNMENT STRUCTURE. Andover is a statutory city with the City Council appointing a City Administrator. The City
Administrator has operating responsibilities for all City functions. A list of public officials and organizational chart can be found
on page 10 and 11 respectively.
IMPLEMENTATION OF GASB 34
In June 1999, the GASB issued Statement 34, which is the most comprehensive government accounting rule ever developed. This
standard substantially changes the way state and local governments report their financial activity. Andover had implemented
these changes in 2002. A summary of the most significant changes is as follows:
L Government -wide financial statements are prepared using full accrual accounting
2. Basic fund financial statements present major funds instead of fund types
3. Budgetary comparisons include original and amended budgets
4. All infrastructures have been capitalized and all capital assets are depreciated except streets and trails that are under the
modified approach
5. A management discussion and analysis is included as required supplemental information
To the Honorable Mayor and City Council
City of Andover, Minnesota
ECONOMIC CONDITION AND OUTLOOK
Moderate population growth is expected to continue in 2009 and 2010, with an estimated population of 33,000 by 2010. The rate
of residential growth as compared to the growth in the 90's has significantly declined as the availability of residentially zoned
property decreased. The City has experienced a significant amount of commercial growth from 2000 through current 2009.
Continual commercial growth is anticipated over the next five to ten years, beyond that growth will slow as the amount of
undeveloped commercially zoned property also declines.
The City's General Fund has two major categories of revenue, which accounted for 86% of the total in 2009. They are general
property taxes at 78 %, and charges for services at 8 %. In prior years, intergovernmental revenue was the second largest category
of revenue for the General Fund. Intergovernmental revenue includes state aids, such as local government aid (LGA), market
value homestead credit (MVHC), highway maintenance aid, fire relief aid and police aid; and county grants, such as recycling
and community development.
During the past several years, the State of Minnesota has made numerous changes to laws pertaining to the distribution of LGA,
Homestead and Agricultural Credit Aid (HACA) and MVHC resulting in a significant reduction in intergovernmental revenue.
The City was able to make up this loss in aid through efficiencies and an increased tax levy, substantially increasing the local tax
rate in 2002. The tax laws that resulted in this change also greatly reduced school district property tax levies, resulting in no net
tax increase for most residential property owners. Sweeping changes approved in 2003 resulted in the loss of approximately
$590,000 in aid to Andover, that loss in aid was originally intended to be for two years (2003 & 2004) but that loss was extended
to include years 2005 and 2006. The state allowed cities the ability to levy up to 60% of the lost 2003 aid in 2004. Again, in
2008 and 2009, the State of Minnesota significantly reduced MVHC to help deal with the state budget deficit.
LGA, HACA and MVHC for 1998 through 2009 are as follows:
Year
LGA
HACA
MVHC
Total
1998
$ 122,651
$ 378,975
$ -
$ 501,626
1999
111,145
462,796
-
573,941
2000
119,752
490,237
-
609,989
2001
119,758
489,991
-
609,749
2002
119,827
-
563,754
683,581
2003 *
-
-
65,632
65,632
2004 *
-
-
57,934
57,934
2005 *
-
-
13,179
13,179
2006 *
-
-
1,700
1,700
2007
-
-
410,519
410,519
2008 *
-
-
198,214
198,214
2009 *
-
-
54,629
54,629
*Due to the State Legislative actions to deal with the state budget deficits,
the City will not be receiving any LGA and significantly reduced MVHC.
For 1998 through 2000, cities with populations over 2,500 were under levy limit restrictions imposed by the State. Levy limits
severely curb the ability of cities to generate additional tax revenue needed to respond to an increasing demand for services. For
1999 and 2000, the levy limit formula was modified to allow for increases based on commercial and industrial growth. This was
a favorable change for Andover, as the City experienced a surge in commercial growth during the past few years. Levy limits
were lifted for 2001 but were reinstated for 2002 - 2004. The 2004 levy limits were so severe that the State did not allow cities
the ability to capture residential and commercial market value growth. Levy limits were lifted from 2005 to 2008, but reinstated
for 2009, 2010 and 2011.
To the Honorable Mayor and City Council
City of Andover, Minnesota
The State's property tax reform efforts have also included modifications to property class rates. Reductions in the class rates for
all major types of property have occurred in 1998, 1999, 2000, and for 2002. These changes resulted in a decrease in the taxable
value of most properties. These changes and the impact on various valued properties are shown in the following table:
Class Rate
1998 1999 2000 & 2001 2002& 2003
Residential Homestead:
$ 623,662
n/a
2001
720,712
Value to $75,000
1.000/0
1.00%
1.00%
1.00%
$76,00 0 to $500,000
1.85%
1.70%
1.65%
1.00%
Over $500,000
1.85%
1.70%
1.65%
1.25%
Commercial / Industrial:
3,063
2,875
2,813
2,000
Value to $150,000
2.70%
2.45%
2.40%
1.50%
Value above$ 150, 000
4.00%
3.50%
3.40%
2.00%
Tax Capacity
1998 1999 2000 & 2001 2002& 2003
Taxable Market Value:
$ 623,662
n/a
2001
720,712
Residential Homestead
2002
588,965
(131,747)
2003
$ 100,000
$ 1,213
$ 1,175
$ 1,163
$ 1,000
150,000
2,138
2,025
1,988
1,500
200,000
3,063
2,875
2,813
2,000
250,000
3,988
3,725
3,638
2,500
300,000
4,913
4,575
4,463
3,000
Commercial / Industrial:
$ 550,000
$ 20,050
$ 17,675
$ 17,200
$ 10,250
750,000
28,050
24,675
24,000
14,250
1,000,000
38,050
33,425
32,500
19,250
2,500,000
98,050
85,925
83,500
49,250
The City's General Fund receives a substantial amount of revenue from licenses and permits. The past ten years are shown
below:
Revenues Change
2000
$ 623,662
n/a
2001
720,712
$ 97,050
2002
588,965
(131,747)
2003
551,385
(37,580)
2004
674,008
122,623
2005
724,436
50,428
2006
598,094
(126,342)
2007
475,893
(122,201)
2008
525,339
49,446
2009
291,903
(233,436)
The $131,747 decrease in revenue for 2002 is due to reclassification of plan check fees ($263,535), which were previously
recorded as license and permit fee and are now recorded as a charges for services revenue. Revenue from residential building
continued to modestly increase through 2002 but declined in 2003, as a reduced number of new residential lots were being added
to the overall lot inventory. License and permit fees increased substantially in 2004 as the number of residential lots available
and built on has increased and the value of new construction is on the rise. The decrease in 2006 and 2007 is largely due to a
slowing economy and home building market. A slight increase in 2008 is primarily due to the commercial activity taking place
but the decrease in 2009 is due to the continued downturn in the economy, especially the construction industry.
To the Honorable Mayor and City Council
City of Andover, Minnesota
The City's General Fund also receives a considerable amount of revenue from charges for services. The past ten years are shown
below:
Revenues Change
2000
$ 900,235
n/a
2001
722,690
(177,545)
2002
689,427
(33,263)
2003
647,813
(41,614)
2004
798,795
150,982
2005
933,365
134,570
2006
780,273
(153,092)
2007
1,121,642
341,369
2008
772,430
(349,212)
2009
701,289
(71,141)
The City analyzes user fees every year as part of the budget process and makes adjustments where appropriate. Revenue from
charges for services totaled $1,121,642 in 2007 and this increase can be linked to the number of public improvement projects
being finalized and assessed in 2007. 2008 proved to be better than expected due to some residential plat activity taking place
but the decrease in 2009 was expected due to the struggling economy.
EMPLOYMENT
The City of Andover's largest employers are government entities. The Anoka - Hennepin School District has a significant
presence in the community and Anoka County's Parks and Highway Departments and Sheriffs Office headquarters are located in
Andover. The City of Andover is best classified as a bedroom community, since a majority of the residents commute outside of
Andover for employment opportunities. The City does anticipate with the development of the Andover Station Commercial Park
and other commercial developments that additional employment opportunities will be provided to residents in the near future.
Major employers in Andover are as follows:
Firm
ISD No 11 Anoka-Hennepin
Anoka County Parks and Highway Departments
Kottkes Bus Service, Inc.
Target
Columbia Park Medical Group
Meadow Creek Christian School
Festival Foods
Farmstead atAndover
City of Andover
MAJOR INITIATIVES
Type of Business / Product
Number of
Employees
Elementary and secondary education
574
County government and services
378
Bus transportation
200
Retail
167
Medical clinic
107
Private education K -12
100
Grocery store
97
Senior housing and assisted living facilities
94
Municipal government and services
85
FOR THE YEAR. The City has many accomplishments to report for 2009. The following list is a summary of some of the
major initiatives completed throughout the year.
1) Implementation of a single - family rental housing license program to provide property owners /landlords with
educational materials and checklists on how to inspect and maintain the exterior of the property, a list of potential
ordinance violations that may occur with a rental property, and an exterior inspection of the building and grounds with
city staff. This program was authorized by the Andover City Council in July 2009 and there were 185 rental licenses
issued before year end.
2) Two street reconstruction projects were completed in 2009. The first was 157x' Avenue from Prairie Road to University
Avenue using MSA funds and special assessments. The second was a street reconstruction that took place in the north
half of the Woodland Meadows development. The project was funded by tax levy and special assessments. In both
To the Honorable Mayor and City Council
City of Andover, Minnesota
projects, the existing bituminous was reclaimed, concrete curb was added in the development, curb was replaced on
157th Avenue, storm sewer structures were replaced or added, and a new bituminous surface was laid.
3) The City Council, along with department heads, participated in strategic planning sessions to develop and prioritize
goals for the next two year cycle. The outcome of the sessions was a City slogan "Welcome Home" and the following
vision statement: Andover, a safe, growing community in which to live and work which enhances the quality of its
citizens' lives through recreational opportunity, quiet neighborhoods, civic involvement, and fiscal and environmental
stewardship.
4) Water Treatment Plant expansion consists of plate settlers and a building expansion to house the equipment. The plate
settlers will improve the operations of the water treatment plant and make water more readily available for
consumption during peak usage times. The addition is projected to be completed and fully functional in early 2010.
5) The Sustainable Landscape Project consisted of beautifying a main corridor through Andover. This roadway has
residential properties backing up to it with various types of fencing materials, colors and heights. With the help of city
staff, middle school students and residents, self - sustainable shrubs were planted along this corridor to provide a
consistent backdrop as people traveled along this roadway through Andover.
6) The City, along with local legislators, authored and successfully made law a new speed limit bill allowing cities to post
speed limits in rural residential areas to 35 mph instead of the previous statutory speed limit of 55 mph.
7) The City of Andover was eligible for funding ($23,133) under the Edward Byrne Memorial Justice Assistance Grant
(JAG) Formula Program. The City utilized these funds to focus on "crime prevention" programs including expanding
our Crime Watch program, acquiring administrative software to help with city code enforcement and for equipment to
help with traffic control issues.
8) The City of Andover was designated a Governor's Fit Cio) by Governor Tim Pawlenty. The City earned the
recognition by making a commitment to support and encourage its residents to be more physically active and to
improve the overall health of the community.
9) In 2009, the City of Andover received The Most Prolific Recycling Program in 2008 award from the Anoka County
Board of Commissioners. Andover residents had the highest recycling rate per person (257.25 pounds) for all materials
of any Anoka County municipality.
10) As the City reaches the decertification dates of TIE District 1 -1 and 1 -2, City Administration did some basic
"housekeeping" to assure that the decertification and final close out reports for the TIE Districts will go smoothly. This
was done through a TIE Plan modification to primarily address that fact that a number of years ago, in the late 1980s
and throughout the 1990s, the budgets that were adopted for the TIE Districts were under the true "pooling" concept
where the budget was not allocated by district but by project. Subsequent to the adoption of those budgets, the Office
of the State Auditor (OSA) is requiring the allocation by district instead of by project. Since the new OSA requirement,
there has been some confusion as to the most correct way to allocate the budgets. As a result, the City undertook a
process for a formal adoption of a budget modification to allocate and confirm the budgets according to the new OSA
requirement.
11) The City staff completed various studies as part of a Comprehensive Plan Update including: a park dedication study,
sanitary sewer study, water system study and transportation system study. The City, as required, submitted these
documents to the Metropolitan Council after the completion of a public hearing and a six -month review by neighboring
cities. The Comprehensive Plan Update was approved by the Metropolitan Council in May of 2009.
12) The City Council has adopted a goal to make a concerted effort toward promoting the usage of solar and wind power,
including the identification of appropriate sites and installations. City staff is currently researching what could be done
with an ordinance to allow wind turbines in the City.
13) The successful hosting of the City's Annual Business Appreciation Day to recognize and build awareness of the local
business community and strengthen relationships with this important element of the Andover community. This event
was coordinated through the Community Development Department.
14) The City Open Space Commission, appointed to assist in managing the successful $2,000,000 open space referendum
ballot in 2006, developed a detailed natural amenity inventory, held informational meetings with residents and made
recommendations to the City Council on land that should be purchased as permanent open space in the community.
The first purchase will take place in December 2009.
To the Honorable Mayor and City Council
City of Andover, Minnesota
15) The City's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2008 was awarded the
Government Finance Officers Association's "Excellence in Financial Reporting Award." The City completes this
document internally and recognized significant cost savings in the form of reduced financial consulting fees. This is
the seventh consecutive year receiving the award and it is anticipated that the City's CAFR for the year ended
December 31, 2009 will also achieve this award.
16) For the eighth year in a row, the City of Andover was awarded the Government Finance Officers Association
Distinguished Budget Presentation Award for the City's 2009 Annual Budget. This award recognizes excellence in the
preparation of the City's budget document as a policy document, an operations guide, as a financial plan and as a
communications device.
17) The City continues to make significant progress after the implementation of new hardware and software to start the
process of digital imaging documents retained by the City. The imaging project has helped the City reduce staffing
through data storage retrieval efficiencies and eliminated the need for City Hall office expansion.
18) The City continues to utilize updates to our financial management software to improve reporting and operating
efficiencies. These updates continue to yield reduced personnel costs and more timely reports.
Residential Development
New residential development was limited to Cardinal Ridge 2nd Addition, a 14 single- family lot infill project, and a modification
of the nearby Woodland Crossings planned unit development to convert five single- family lots into six detached townhouse lots.
Plat review was initiated for a planned unit development containing a combination of 36 single- family and detached townhouse
lots. However, this application was withdrawn by the applicant during 2009. It is important to note that the City continues to
have a reasonable lot supply for a variety of housing options including single- family lots, townhomes and condominium units.
Commercial Industrial Development
New construction did actually occur in Andover in 2009 from some commercial projects. These projects included review and
approval of Kwik Trip convenience store /gas station and car wash, two automotive repair and sales facilities at two existing sites,
and the expansion of pipeline facilities for Northern Natural Gas. Completed in 2009 was the Anoka County Law Enforcement
Center and Regional Forensic Laboratory with 145,000 square feet and will employ 250 individuals. This facility should increase
the traffic flow to the surrounding restaurants and retail stores.
FOR THE FUTURE. The City continues to focus on quality of life improvements throughout the City. These efforts cover a
broad array of areas including: protecting and improving the environment, revitalization of parks and public areas, expanding
recreational opportunities, providing cost - effective city services, increased communication between city representatives and the
public and added commercial/retail opportunities.
The City utilizes many avenues to reach its residents, whether through community access television, the City newsletter or the
City's webpage (www.ci.andover.mn.us). It is important to the City that our residents are informed and have the ability to
participate in the activities of their City. The City did conduct a community survey in 2006, with the help of a polling firm, to
secure opinions and suggestions from the public.
RELEVANT FINANCIAL POLICIES
The City has a policy regarding General Fund reserve balances. The City plans for a designated fund balance in the General
Fund equivalent to 6- months of the current year's budgeted expenditures to provide working capital between semi - annual
property tax settlements. Since the property tax settlements are received by the City in July and December, the City needs
sufficient cash reserves to avoid short -term borrowing to finance operations. The City also reserves fund balances for prepaid
items, inventories and other legal obligations. The City may also designate a portion of fund balance for special purposes.
The primary goal of the City's investment policy is to ensure the safety of the principal invested. Cash temporarily idle during
the year is invested in certificates of deposit, commercial paper, and obligations of the U.S. Treasury and government agencies.
Cash balances from all City funds are pooled into an investment fund and investment income is distributed on a pro -rata basis at
the end of each quarter. Extended maturities are utilized to take advantage of higher yields but staggered in a way to meet
projected liquidity needs.
Capital financing for major improvements is provided through improvement bonds, general obligation bonds, tax increment
bonds, or revenue bonds. Depending on the project, special assessments may be levied upon properties to share in the cost of the
improvement project. The special assessments are collected over a period of time and are used to help satisfy the improvement
bond debt or reimburse the fund used to finance the project.
To the Honorable Mayor and City Council
City of Andover, Minnesota
The City Council has also adopted financial management policies in order to allow for the planning of adequate funding of
services desired by the public, to manage City finances wisely, and to carefully account for public funds. These policies are
reviewed each year when the annual budget is adopted. The financial management policies included: operating budget policies;
revenue policies; accounting, auditing and financial reporting policies; investment policies; debt policies; capital improvement
policies; and risk management policies.
The City Council has adopted a comprehensive set of internal control procedures. The City's accounting system was developed
and is continually evaluated to assure the adequacy of internal accounting controls. Internal accounting controls are designed to
provide reasonable but not absolute assurance in the areas of: safeguarding assets against loss from unauthorized use or
disposition, reliability of financial records, and convenience of access for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance adopted by the City Council recognizes that the evaluation of cost
and benefits requires estimates and judgments by management, and the cost of a control should not exceed the benefits likely to
be derived. All internal controls are evaluated against the above criteria. It is our belief that the City's internal accounting
controls adequately safeguard the City's assets and also provide reasonable assurance of properly recording financial
transactions.
OTHER INFORMATION
AWARDS. The Government Finance Officers Association (GFOA) of the United States and Canada presented a Distinguished
Budget Presentation Award to the City of Andover for its annual budget for the fiscal year beginning January 1, 2009. This is the
eighth year in a row the City of Andover has received this award. In order to receive this award, a governmental unit must
publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a
communications device. This award is valid for a period of one year only. We believe that the annual budget for the fiscal year
beginning January 1, 2010 continues to conform to the program requirements and have submitted it to the GFOA to determine its
eligibility for another award.
The GFOA also presented the Certificate of Achievement for Excellence in Financial Reporting Award to the City of Andover
for its 2008 Comprehensive Annual Financial Report. This is the seventh time the City of Andover has received this award. In
order to receive this award, a government unit must publish an easily readable and efficiently organized comprehensive annual
financial report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. This award is valid for a period of one year only. We believe this report for 2009
continues to conform to the Certificate of Achievement Program requirements and have submitted it to the GFOA to determine
its eligibility for another award.
INDEPENDENT AUDIT. State statutes require an annual audit by independent certified public accountants. HLB Tautges
Redpath, Ltd. was engaged by the City to render an opinion on the City's financial statements. The auditor's report on the basic
financial statements and combining and individual fund statements and schedules is included in the financial section of this
report.
ACKNOWLEDGMENTS. The preparation of this report could not have been accomplished without the efficient services and
dedication of the Finance Department staff and the consultation of the City's auditing firm. Staff members: Lee Brezinka,
Melissa Knutson and Brenda Fildes have my sincere appreciation for their contribution to the preparation of this report.
I also want to express our appreciation to the Mayor and members of the City Council for their interest and support in planning
and conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
o-
James Dickinson
City Administrator
CITY OF ANDOVER, MINNESOTA
ORGANIZATION
December 31, 2009
Office Name Term
Mayor Michael Gamache January 4, 2011
Council Member
Don Jacobson
January 4, 2011
Council Member
Michael Knight
January 2, 2013
Council Member
Sheri Bukkila
January 2, 2013
Council Member
Julie Trude
January 4, 2011
City Administrator / City Clerk
James Dickinson
Community Development Director
Will Neumeister
Director of Public Works / City Engineer
David Berkowitz
Finance Manager
Lee Brezinka
Building Official
Don Olson
Fire Chief
Dan Winkel
Attorney
Fiscal Consultants
Hawkins & Baumgartner, P.A.
Ehlers & Associates, Inc.
Ilt
Appointed
Appointed
Appointed
Appointed
Appointed
Appointed
Appointed
Appointed
CITY OF ANDOVER
Organizational Chart
is
Presented to
City of • • `'
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
W
II. FINANCIAL SECTION
13
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Andover, Minnesota
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of
the City of Andover, Minnesota, as of and for the year ended December 31, 2009, which
collectively comprise the City of Andover, Minnesota's basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the City of
Andover, Minnesota's management. Our responsibility is to express opinions on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of
Andover, Minnesota, as of December 31, 2009, and the respective changes in financial
position, and cash flows, where applicable, thereof, for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
May 7, 2010 on our consideration of the City of Andover, Minnesota's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, and other matters. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing and not to provide an opinion on the internal
4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com
HLB Tautges Redpath, Ltd. is a member of IM International, a world -wide organization of accounting firms alAusiness advisors. I Equal Opportunity Employer
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
The Management's Discussion and Analysis and the required supplementary information on
pages 16 through 25 and 80 through 84, are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Andover, Minnesota's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and
schedules, supplementary financial information and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules and
supplementary financial information have been subjected toF the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion
on them:
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
May 7, 2010
15
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
As management of the City of Andover, we offer readers of the City's financial statements this narrative overview and analysis of the
financial activities of the City for the fiscal year ended December 31, 2009. We encourage readers to consider the information presented here
in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 2 through 9 of this
report.
Financial Hillhlillhts
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $152,904,917 (Net assets). Of this amount,
$24,317,392 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors in accordance with
the City's fund designations and fiscal policies.
The City's total net assets increased by $3,399,377, primarily due to the completion of a development project.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $40,488,075.
The City's total long -term liabilities decreased by $1,787,349 during the current fiscal year, primarily due to the scheduled debt service
payments made in 2009.
Special
Debt
Capital
Ending
General
Revenue
Service
Projects
Totals
Reserved $ 207,515
$ 49,012
$ 20,305,482
$ 401,701
$ 20,963,710
Designated 4,120,897
1,691,625
-
14,839,789
20,652,311
Undesignated -
(458,423)
-
(669,523)
(1,127,946)
$ 4,328,412
$ 1,282,214
$ 20,305,482
$ 14,571,967
$ 40,488,075
The City's total long -term liabilities decreased by $1,787,349 during the current fiscal year, primarily due to the scheduled debt service
payments made in 2009.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial
statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview
of the City's finances, in a manner similar to a private - sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net
assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
i
Beginning
Ending
Balance
Additions
Reductions
Balance
Governmental activities:
Bondspayable
$ 52,370,000
$ 1,340,000
$ (3,865,000)
$ 49,845,000
Other post employment benefits
36,096
43,966
(12,701)
67,361
Compensated absences
504,893
343,595
(306,882)
541,606
Total governmental activities
52,910,989
1,727,561
(4,184,583)
50,453,967
Business -type activities:
Bondspayable
14,680,000
1,025,000
(375,000)
15,330,000
Other post employment benefits
6,370
8,374
(1,914)
12,830
Compensated absences
107,333
58,824
(45,611)
120,546
Total business -type activities
14,793,703
1,092,198
(422,525)
15,463,376
Total City long -term liabilities
$ 67,704,692
$ 2,819,759
$ (4,607,108)
$ 65,917,343
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial
statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview
of the City's finances, in a manner similar to a private - sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net
assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
i
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in
net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public
safety, public works, sanitation, parks and recreation, recycling and economic development. The business -type activities of the City include
water, sewer and storm sewer.
The government -wide financial statements can be found on pages 29 through 31 of this report.
Fund Financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance- related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements
focus on near -term inflows and outflows of spend -able resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government's near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government -wide
financial statement. By doing so, readers may better understand the long -term impact of the City's near -term financial decisions. Both the
governmental fund balance sheet and governmental fund statement of revenues, expenditures, and change in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains eight individual major governmental funds. Information is presented separately in the governmental fund balance sheet
and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the following major funds: General
Fund, 2006 Economic Development Authority (EDA) Public Facility Lease Revenue Refunding Bonds Debt Service Fund, 2007 EDA Public
Facility Lease Revenue Refunding Bonds Debt Service Fund and the following capital projects funds (CPF): Water Trunk, Sewer Trunk,
Road and Bridge, Tax Increment Projects and Permanent Improvement Revolving.
Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-
major governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general and special revenue funds.
A budgetary comparison statement has been provided for those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 32 through 37 of this report.
Proprietary funds. When the City charges customers for the services it provided — whether to outside customers or to other departments of
the City — these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the statement of net assets and the statement of revenues, expenses and changes in net assets.
The enterprise funds are the same as the business -type activities reported in the government -wide statements but provide more detail and
additional information, such as cash flows, for proprietary funds. The City uses enterprise funds to account for its water, sanitary sewer and
storm sewer operations.
Internal service funds are used to report activities that provide supplies and services for the City's other departments, such as the equipment
maintenance and insurance funds. The internal service funds are reported with governmental activities in the government -wide financial
statements.
The basic proprietary fund financial statements can be found on pages 38 through 43 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not
reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own
program. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on page 44 of this report
17
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in
the government wide and fund financial statements. The notes to the financial statements can be found on pages 45 through 78 of this report.
Other information. The combining statements referred to earlier in connection with non -major governmental funds is presented
immediately following the required supplementary information on budgetary comparisons, and on the modified approach for streets and trails
infrastructure. Combining and individual fund statements and schedules can be found on pages 85 through 123 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets
exceeded liabilities by $152,904,917 at the close of the most recent fiscal year.
The largest portion of the City's net assets ($120,334,834 or 79 percent) reflects its investment in capital assets (e.g. land, buildings,
machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. It does not include any refunding debt
that has not met the refunding date of the original issue. The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
CITY OF ANDOVER'S NET ASSETS
Governmental Activities
Business -Type
Activities
Totals
2008
2009
2008
2009
2008 2009
Current and other assets $ 47,312,524
$ 47,775,309
$ 11,067,643
$ 12,286,615
$ 58,380,167 $ 60,061,924
Capital assets 115,149,769
115,419,872
45,716,052
45,699,962
160,865,821 161,119,834
Total assets 162,462,293
163,195,181
56,783,695
57,986,577
219,245,988 221,181,758
Long -term liabilities
outstanding
52,910,989
50,453,967
14,793,703
15,463,376
67,704,692
65,917,343
Other liabilities
1,657,287
1,651,643
378,469
707,855
2,035,756
2,359,498
Total liabilities
54,568,276
52,105,610
15,172,172
16,171,231
69,740,448
68,276,841
Net assets:
Invested in capital assets,
net of related debt
79,644,769
83,394,872
37,606,052
36,939,962
117,250,821
120,334,834
Restricted
8,345,185
8,252,691
-
-
8,345,185
8,252,691
Unrestricted
19,904,063
19,442,008
4,005,471
4,875,384
23,909,534
24,317,392
Total net assets
$ 107,894,017
$ 111,089,571
$ 41,611,523
$ 41,815,346
$ 149,505,540
$ 152,904,917
A portion of the City's net assets represents resources that are subject to external restrictions on how they may be used. The remaining
balance of unrestricted net assets ($24,317,392) may be used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the City as a
whole, as well as for its separate governmental and business -type activities.
18
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Government -wide Activities
Governmental activities increased the City's net assets by $3,195,554 and business -type activities increased net assets by $203,823. Key
elements of the activities are as follows:
City of Andover's Changes in Net Assets
Governmental Activities Business -Type Activities Total
2008 2009 2008 2009 2008 2009
Revenues:
Program revenues:
Charges for services
$ 3,080,182
$ 2,923,000
$ 4,153,884
$ 4,421,065
$ 7,234,066
$ 7,344,065
Operating grants
and contributions
917,618
966,635
-
-
917,618
966,635
Capital grants
and contributions
1,069,607
1,631,929
142,133
793,589
1,211,740
2,425,518
General revenues:
Property taxes
9,752,701
10,175,519
-
-
9,752,701
10,175,519
Tax increment
1,783,270
1,930,669
1,783,270
1,930,669
Grants and contributions
not restricted to
specific programs
274,402
131,084
-
-
274,402
131,084
Unrestricted investments
earnings
1,514,012
1,032,507
372,510
373,893
1,886,522
1,406,400
Total revenues
18,391,792
18,791,343
4,668,527
5,588,547
41,851,662
29,048,417
Expenses:
General government
2,505,105
2,413,916
-
-
2,505,105
2,413,916
Public safety
4,035,884
4,237,401
4,035,884
4,237,401
Public works
5,144,197
3,776,367
5,144,197
3,776,367
Parks and recreation
2,963,218
2,880,595
2,963,218
2,880,595
Recycling
85,397
86,949
85,397
86,949
Economic development
540,285
481,632
540,285
481,632
Interest on long -term debt
2,219,130
2,146,960
-
-
2,219,130
2,146,960
Water
-
-
2,563,781
2,594,713
2,563,781
2,594,713
Sewer
1,794,891
1,831,505
1,794,891
1,831,505
Storm sewer
-
-
521,975
536,619
521,975
536,619
Total expenses
17,493,216
16,023,820
4,880,647
4,962,837
22,373,863
20,986,657
Increase (decrease) in net
assets before gain on the
sale of capital assets and
transfers
898,576
2,767,523
(212,120)
625,710
686,456
3,393,233
Gain on the sale of
capital assets
234,070
6,144
-
234,070
6,144
Transfers
416,874
421,887
(416,874)
(421,887)
-
-
Increase in net assets
1,549,520
3,195,554
(628,994)
203,823
920,526
3,399,377
Net assets - beginning
106,344,497
107,894,017
42,240,517
41,611,523
148,585,014
149,505,540
Net assets - ending
$ 107,894,017
$ 111,089,571
$ 41,611,523
$ 41,815,346
$ 149,505,540
$ 152,904,917
I1'
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Governmental Activities
Following are specific graphs that provide comparisons of the governmental activities revenues and expenses:
Governmental Activities - Revenues
Unrestricted investments
Grants and contributions
earnings
Chares for services
g
not restricted for specific
5.5%
15.5%
programs
0.7%
Gain (loss) on the sale of
Tax increment
capital assets
10.3%
0.0%
Capital grants and
contributions
8.7%
Illllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll d u u u
Operating grants and
contributions
Property taxes
54.2%
W
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Business -Type Activities
Business -type activities increased net assets by $203,823. Below are graphs showing the business -type activities revenue and expense
comparisons:
QI
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Financial Analvsis of the Government's Funds
Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance
may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $40,488,075. Approximately
48 percent of this total amount ($19,524,365) constitutes unreserved fund balance. The remainder of the fund balance ($20,963,710) is
reserved because it has already been committed 1) to provide for prepaid items ($112,054), 2) to provide for inventory ($109,329), 3) to
provide for economic development ($9,828), 4) to pay debt service ($20,305,482) and 5) bond proceeds specified for a project ($427,017).
Major Funds
The general fund increased by $153,377 in 2009, which was a $223,582 change from the final budget. The final budget showed a decrease
in fund balance of $70,205. The increase in fund balance is due to employee furloughs and various departments under - spending.
The water and sewer trunk capital projects funds fluctuate based on development activity and whether there is any cost sharing for pipe over -
sizing, extra depth, etc. In 2009, the water trunk fund expenditures are primarily for the refurbishing of a water tower. The sewer trunk fund
continues to receive funds from the sewer enterprise fund to be set aside for future replacements.
The road and bridge capital projects fund increased by $697,781 primarily due to the collection of state aid construction dollars for prior year
projects.
The tax increment capital projects fund increased by $769,297 due to the lack of any improvements taking place in the tax increment
districts.
The permanent improvement revolving capital projects fund decreased by $284,751 due to the transfer out for debt service payments
exceeding special assessment revenues.
Nonmajor Funds
The community center special revenue fund increased by $165,276 due to the first full year of lease payments. Half of the building is leased
to the Greater Minneapolis YMCA and they started making lease payments in 2008. The City received a partial lease payment in 2008 of
$235,686 and years 2009 through 2033 will be receiving scheduled lease payments between $626,020 and $635,000 annually with a final
lease payment in 2034 of $287,567. Future YMCA lease payments will significantly reduce the City's obligation to finance annual debt
service.
The 2009A G.O. state aid refunding bonds debt service fund increased by $949,415 due to the issuance of bonds for the purpose of refunding
the 2001B state aid bonds on February 1, 2010.
The 2005A G.O. improvement bonds debt service fund decreased by $562,810 due to its annual debt service obligations.
The open space referendum bonds debt service fund decreased by $156,667 due to the transfer of funds to the open space referendum bonds
capital projects fund to offset the purchase of open space.
The fluctuation of fund balance for the equipment certificate capital projects funds depends on when the bonds are issued and when the
purchases are actually made.
The open space referendum bonds capital projects fund decreased by $600,693 due to the acquisition of open space purchased in December
2009 as bonds will not be issued until February 2010.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements,
but in more detail.
The unrestricted net assets in the respective proprietary funds are enterprise funds of $4,874,224 (water $2,023,075, sewer $2,682,597 and
storm sewer $168,552) and internal service funds of $283,335. The enterprise funds had a net increase in net assets in 2009 of $172,651
(water $180,709, sewer $44,079 and storm sewer ($52,137)). Internal service funds had a net increase in net assets of $144,110.
W
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business type activities as of December 31, 2009, amounts to
$161,119,834 (net of accumulated depreciation). This investment in capital assets includes land, buildings, infrastructure, machinery and
equipment.
The City has elected to use the modified approach as defined in GASB Statement No. 34 for infrastructure reporting for its Pavement
Management Program, which includes streets and trails. Under GASB Statement No. 34, eligible infrastructure capital assets are not required
to be depreciated under the following requirements:
1) The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (a) an up -to-
date inventory; (b) perform condition assessments and summarize the results using a measurement scale; and (c) estimate annual
amount to maintain and preserve at the established condition assessment level.
2) The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and
disclosed condition assessment level.
The City's policy is to achieve an average rating of good (56 — 70) for all streets and trails. In the fall of 2009, the City conducted a physical
condition assessment of the streets and trails constructed since 1974. This assessment will be completed every three years. As of December
31, 2009, the City's street and trail system was rated at an Overall Condition Index (OCI) of 81, which is higher than the City's policy level.
The City's streets and trails are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun's ultra-
violet rays drying out and breaking down the top layer of pavement; (3) utility company /private development trenching operations; (4) water
damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through
short -term maintenance activities such as pothole patching, crack sealing, seal coating and overlaying. The City expended $1,666,216 on
street and trail maintenance for the year ending December 31, 2009. These expenditures delayed deterioration; however, the overall
condition of the system increased slightly (80 OCI to an 81 OCI) through these maintenance expenditures. The City has estimated that the
amount of annual expenditures required to maintain the City's street and trail system at the average OCI rating of good is approximately
$1,150,000.
23
Maintenance
Actual
OCI
Year
Estimate
Expenditures
Rating
2003
$ 950,000
$ 956,688
82
2004
1,000,000
1,847,066
82
2005
1,000,000
1,655,715
83
2006
1,150,000
1,228,9 81
82
2007
1,150,000
1,256,433
81
2008
1,150,000
2,244,713
80
2009
1,150,000
1,666,216
81
23
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
Primary Government
Governmental activities:
Land and improvements
Streets and trails
Construction in progress
Buildings and improvements
Furniture and equipment
Machinery and equipment
Other park improvements
Total capital assets
Less accumulated depreciation for:
Buildings and improvements
Furniture and equipment
Machinery and equipment
Other park improvements
Beginning
Balance Additions
$ 8,041,308
$ 955,763
79,153,416
394,276
309,414
-
26,381,584
275,875
364,254
46,862
6,418,351
426,863
5,019,920
107,466
Deletions
(309,414)
(81,484)
Ending
Balance
$ 8,997, 071
79, 547, 692
26,657,459
411,116
6,763,730
5,127,386
125,688,247 2,207,105 (390,898) 127,504,454
4,453,300
893,836
149,055
54,453
4,488,134
419,433
1,447,989
253,746
Total accumulated depreciation 10,538,478 1,621,468
Governmental activities
capital assets - net
Business -type activities:
Land and improvements
Construction in progress
Buildings and improvements
Furniture and equipment
Machinery and equipment
Collection and distribution
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings and improvements
Furniture and equipment
Machinery and equipment
Collection and distribution
- 51347,136
- 203,508
(75,364) 4,832,203
-
1,701,735
(75,364) 12,084,582
115,149,769
585,637
(315,534) 115,419,872
730,243
-
- 730,243
-
776,911
- 776,911
14,810,983
-
- 14,810,983
61,390
-
- 61,390
1,226,773
24,415
- 1,251,188
48,482,600
793,589
- 49,276,189
65,311,989
1,594,915
- 66,906,904
4,596,132
522,319
- 5,118,451
17,221
8,483
- 25,704
817,193
95,125
- 912,318
14,165,391
985,078
- 15,150,469
Total accumulated depreciation 19,595,937 1,611,005
Business -type activities
capital assets -net
Total capital assets
45,716,052 (16,090)
21, 206, 942
45, 699, 962
$ 160,865,821 $ 569,547 $ (315,534) $ 161,119,834
Additional information on the City's capital assets can be found in Note 5.
Long -term debt. At the end of the current fiscal year, the City had total long -term debt outstanding of $65,837,152, a decrease of
$1,825,074 from 2008. General obligation revenue bonds ($50,825,000) were used to finance the construction of the water treatment facility
and the community center, and the refunding of portions of the community center bonds and water treatment facility bonds. Special
assessment bonds ($2,450,000) financed improvement projects within the City and are assessed to the benefiting properties. Tax increment
bonds ($2,515,000) financed the City's economic development plan within tax increment districts. Certificates of indebtedness ($1,420,000)
financed capital equipment purchases. Capital improvement bonds ($2,775,000) financed the construction of Fire Station #3, the purchase of
the Public Works building from the EDA and some improvements done at the Public Works building and City Hall. Permanent improvement
24
CITY OF ANDOVER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009
revolving bonds ($2,635,000) financed improvement projects within the City and are assessed to the benefiting properties. State aid bonds
($2,555,000) were used to finance Municipal State Aid (MSA) eligible road projects and the refunding of portions of the state aid bonds.
Additional long -term debt in the amount of $662,152 is for compensated absences.
City of Andover's Outstanding Debt
The City maintains an AA+ rating with a stable outlook from Standard and Poor's.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated Taxable Market Value. The
current debt limitation for the City is $89,477,868. Only $21,716,412 of the City's outstanding debt is counted within the statutory limitation.
Additional information on the City's long -term debt can be found in Note 6 and 7.
Requests for information. This financial report is designed to provide a general overview of the City of Andover's finances for all those
with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City of Andover, Attn: Finance Manager, 1685 Crosstown Boulevard NW, Andover,
Minnesota 55304 or by calling 763 - 755 -5100.
W
Governmental
Business -Type
Activities
Activities
Total
Bonds payable:
G. 0. revenue bonds
$ 35,495,000
$ 15,330,000
$ 50,825,000
Special assessment bonds
2,450,000
-
2,450,000
Tax increment bonds
2,515,000
2,515,000
Certificates of indebtedness
1,420,000
1,420, 000
Capital improvement bonds
2,775,000
2,775,000
Permanent improvement revolving bonds
2,635,000
2,635,000
State aid bonds
2,555,000
2,555,000
Total bonds payable
49,845,000
15,330,000
65,175, 000
Compensated absences
541,606
120,546
662,152
Total
$ 50,386,606
$ 15,450,546
$ 65,837,152
The City maintains an AA+ rating with a stable outlook from Standard and Poor's.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated Taxable Market Value. The
current debt limitation for the City is $89,477,868. Only $21,716,412 of the City's outstanding debt is counted within the statutory limitation.
Additional information on the City's long -term debt can be found in Note 6 and 7.
Requests for information. This financial report is designed to provide a general overview of the City of Andover's finances for all those
with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City of Andover, Attn: Finance Manager, 1685 Crosstown Boulevard NW, Andover,
Minnesota 55304 or by calling 763 - 755 -5100.
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41
BASIC FINANCIAL STATEMENTS
27
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28
CITY OF ANDOVER, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2009
Assets:
Cash and investments
Cash and investments with escrow agent
Accrued interest
Due from other governmental units
Accounts receivable - net
Prepaid items
Property taxes receivable:
Unremitted
Delinquent
Special assessments receivable:
Unremitted
Delinquent
Deferred
Notes receivable
Inventories - at cost
Capital assets - net
Nondepreciable
Depreciable
Total assets
Liabilities:
Interfund payable
Accounts payable
Contracts payable
Developer advances
Deposits payable
Due to other governmental units
Salaries payable
Unearned revenue
Accrued interest payable
Other post employment benefits:
Due in more than one year
Compensated absences:
Due within one year
Due in more than one year
Bonds /notes payable:
Due within one year
Due in more than one year
Total liabilities
Primary Government
Government Business -Type
Activities Activities
Statement I
Totals
2009 2008
$ 22,203,836
$ 4,542,444
$ 26,746,280
$ 24,921,129
18,137,575
6,492,264
24,629,839
23,687,343
373,773
125,253
499,026
738,135
33,371
7,700
41,071
77,448
235,237
990,651
1,225,888
1,231,482
113,804
21,500
135,304
136,665
139,326
-
139,326
93,071
312,988
-
312,988
326,285
1,026
3,202
4,228
2,662
132,568
70,431
202,999
174,810
4,393,638
-
4,393,638
5,265,719
1,525,773
-
1,525,773
1,537,488
172,394
33,170
205,564
187,930
88,544,763
1,507,154
90,051,917
88,234,381
26,875,109
44,192,808
71,067,917
72,631,440
163,195,181
57,986,577
221,181,758
219,245,988
1,160
(1,160)
-
-
175,628
47,466
223,094
200,075
203,439
333,586
537,025
233,292
20,000
-
20,000
10,000
51,701
2,234
53,935
59,639
103,149
26,164
129,313
108,041
144,789
21,805
166,594
133,796
59,227
-
59,227
97,172
892,550
277,760
1,170,310
1,193,741
67,361
12,830
80,191
42,466
54,161
12,054
66,215
61,222
487,445
108,492
595,937
551,004
6,709,000
455,000
7,164,000
4,240,000
43,136,000
14,875,000
58,011,000
62,810,000
52,105,610
16,171,231
68,276,841
69,740,448
Net assets:
Invested in capital assets, net of related debt
83,394,872
36,939,962 120,334,834
117,250,821
Restricted for:
Debt service
2,078,837
- 2,078,837
2,860,501
Capital improvements
427,017
427,017
485,494
Tax increment purposes
5,746,837
- 5,746,837
4,999,190
Unrestricted
19,442,008
4,875,384 24,317,392
23,909,534
Total net assets
$ 111,089,571
$ 41,815,346 $ 152,904,917
$ 149,505,540
The accompanying notes are an integral part of these financial statements
CITY OF ANDOVER, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2009
Functions /Programs
Primary government:
Government activities:
General government
Public safety
Public works
Parks and recreation
Recycling
Economic development
Interest on long -term debt
Total government activities
Business -type activities:
Water
Sewer
Storm sewer
Total business -type activities
Total primary government
Program Revenues
Charges Operating Capital
For Grants and Grants and
Expenses
$ 2,413,916
$ 483,639
4,237,401
412,113
3,776,367
316,451
2,880,595
1,495,779
86,949
29,479
481,632
185,539
2,146,960
-
16,023,820 2,923,000
2,594,713
2,127,676
1,831,505
1,967,997
536,619
325,392
4,962,837
4,421,065
$ 20,986,657
$ 7,344,065
The accompanying notes are an integral part of these financial statements.
Kid
$ 9,783 $
306,874 -
593,511 1,529,786
- 102,143
56,467 -
966,635 1,631,929
$ 966,635
338,740
280,801
174,048
793,589
$ 2,425,518
General revenues:
General property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues, gain on sale of
capital assets and transfers
Change in net assets
Net assets - beginning
Net assets - ending
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental Business -Type Totals
$ (1,920,494) $
$ (1,920,494)
$ (1,858,024)
(3,518,414)
(3,518,414)
(2,964,200)
(1,336,619)
(1,336,619)
(3,321,024)
(1,282,673)
(1,282,673)
(1,733,379)
(1,003)
(1,003)
(1,920)
(296,093)
(296,093)
(328,132)
(2,146,960)
(2,146,960)
(2,219,130)
(10,502,256)
(10,502,256)
(12,425,809)
(128,297)
417,293
(37,179)
251,817
(10,502,256) 251,817
10,175,519
1,930,669
131,084 -
1,032,507 373,893
6,144 -
421,887 (421,887)
13,697,810 (47,994)
3,195,554 203,823
107,894,017 41,611,523
$ 111,089,571 $ 41,815,346
M
(128,297)
417,293
(37,179)
251,817
(10,250,439)
10,175,519
1,930,669
131,084
1,406,400
6,144
13,649,816
3,399,377
149,505,540
$ 152,904,917
(576,349)
216,569
(224,850)
(584,630)
(13,010,439)
9,752,701
1,783,270
274,402
1,886,522
234,070
13,930,965
920,526
148,585,014
$ 149,505,540
CITY OF ANDOVER, MINNESOTA
BALANCESHEET
GOVERNMENTALFUNDS
December 31, 2009
Liabilities and Fund Balances
Liabilities:
Interfund payable
-
2006 EDA Public
2007 EDA Public
Accounts payable
84,174
- - -
Facility Lease
Facility Lease
138,104
Developer advances
-
Revenue
Revenue
Deposits payable
11,892
5,741
5,741
Refunding Bonds
Refunding Bonds
Water Trunk
Sewer Trunk
Salaries payable
General
DSF
DSF
CPF
CPF
Assets:
78,510
Total liabilities
522,779
5,000 5,000 487,411
84,794
Cash and investments
$ 3,586,725
$ 583
$ 583
$ 2,746,377
$ 2,514,380
Cash and investments with escrow agent
-
9,760,092
6,705,279
-
-
Accrued interest
10,155
176,331
121,224
10,571
11,788
Due from other governmental units
33,371
-
-
-
-
Accounts receivable - net
74,449
- -
-
-
Interfund receivable
670,000
Designated:
61,000
615,000
Prepaid items
103,804
-
-
Property taxes receivable:
-
Capital projects funds
2,673,600
3,134,884
Unremitted
68,275
Delinquent
183,242
-
Special assessments receivable:
Unremitted
446
40
Delinquent
17,013
13,611
-
Deferred
-
329,412
78,510
Notes receivable
-
-
-
Inventories - at cost
103,711
-
-
-
Total assets
4,851,191
9,937,006
6,827,086
3,161,011
3,219,678
Liabilities and Fund Balances
Liabilities:
Interfund payable
-
5,000 5,000
Accounts payable
84,174
- - -
Contracts payable
20,165
138,104
Developer advances
-
-
-
Deposits payable
11,892
5,741
5,741
Due to other governmental units
86,360
543
543
Salaries payable
119,934
-
-
Deferred revenue
200,254
- 343,023
78,510
Total liabilities
522,779
5,000 5,000 487,411
84,794
Fund balances:
Reserved for:
Prepaid items
103,804
- - -
-
Inventory
103,711
Economic development
-
- -
Debt service
9,932,006 6,822,086
Projects
-
- -
Unreserved reported in:
Designated:
General fund
4,120,897
Special revenue funds
-
-
-
Capital projects funds
2,673,600
3,134,884
Undesignated:
Special revenue funds
Capital projects funds
Total fund balances 4,328,412 9,932,006 6,822,086 2,673,600 3,134,884
Total liabilities and fund balances $ 4,851,191 $ 9,937,006 $ 6,827,086 $ 3,161,011 $ 3,219,678
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Other long -term assets are not available to pay for current- period expenditures and, therefore, are deferred in the funds.
Internal service funds are used by management to charge the cost of equipment maintenance and insurance to individual funds.
The assets and liabilities are included in the governmental activities statement of net assets along with a deduction of net
revenue attributable to business -type activities.
Long -term liabilities, including bonds payable and other post employment benefits, are not due and payable in the current period and,
therefore, are not reported in the funds.
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
W
Statement 3
$ 40,488,075 $ 39,286,726
115,419,872 115,149,769
6,245,966 7,123,097
282,175 169,237
(51,346,517) (53,834,812)
$ 111,089,571 $ 107,894,017
33
Tax
Permanent
Road &
Increment
Improvement
Other
Intra
Totals
Bridge
Projects
Revolving
Governmental
Activity
Governmental Funds
CPF
CPF
CPF
Funds
Eliminations
2009
2008
$ 3,218,237
$ 4,265,724
$ 1,338,657
$ 4,290,037
$
$ 21,961,303
$ 21,521,788
-
-
-
1,672,204
18,137,575
17,194,324
9,886
12,903
4,588
15,510
372,956
610,742
-
-
-
-
33,371
69,842
160,788
235,237
203,914
-
(1,346,000)
-
-
-
-
8,250
112,054
114,915
9,926
37,249
23,876
139,326
93,071
32,195
30,247
67,304
312,988
326,285
540
-
-
-
1,026
272
6,288
-
62,668
32,988
132,568
112,605
1,261,293
1,032
2,329,456
393,935
4,393,638
5,265,719
30,761
1,431,000
-
64,012
1,525,773
1,537,488
-
-
-
5,618
109,329
93,836
4,569,126
5,778,155
3,735,369
6,734,522
(1,346,000)
47,467,144
47,144,801
-
-
-
1,336,000
(1,346,000)
-
-
-
3,513
72,275
159,962
160,575
41,742
-
3,428
203,439
219,503
-
20,000
-
20,000
10,000
-
-
28,327
51,701
55,955
1,685
7,805
3,358
100,294
84,844
-
-
-
18,546
138,480
106,929
1,330,537
1,343,279
2,392,124
617,466
6,305,193
7,220,269
1,373,964
1,374,597
2,392,124
2,079,400
(1,346,000)
6,979,069
7,858,075
-
-
-
8,250
112,054
114,915
5,618
109,329
93,836
9,828
9,828
2,260
3,551,390
20,305,482
20,132,603
427,017
427,017
604,494
-
4,120,897
3,981,230
-
-
-
1,691,625
1,691,625
1,540,720
3,195,162
4,403,558
1,343,245
89,340
14,839,789
13,483,426
-
-
-
(458,423)
(458,423)
(599,461)
-
-
(669,523)
(669,523)
(67,297)
3,195,162
4,403,558
1,343,245
4,655,122
40,488,075
39,286,726
$ 4,569,126
$ 5,778,155
$ 3,735,369
$ 6,734,522
$ (1,346,000)
$ 47,467,144
$ 47,144,801
$ 40,488,075 $ 39,286,726
115,419,872 115,149,769
6,245,966 7,123,097
282,175 169,237
(51,346,517) (53,834,812)
$ 111,089,571 $ 107,894,017
33
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTALFUNDS
For The Year Ended December 31, 2009
The accompanying notes are an integral part of these financial statements.
34
2006 EDA Public
2007 EDA Public
Facility Lease
Facility Lease
Revenue
Revenue
Refunding Bonds
Refunding Bonds
Water Trunk
Sewer Trunk
General
DST
DST
CPF
CPF
Revenues:
General property taxes
$ 6,588,601
$
$
$
$
Tax increment collections
-
Licenses and permits
291,903
Intergovernmental
595,002
-
-
Special assessments
-
39,164
24,572
Charges for services
701,289
-
-
Fines
110,779
-
-
-
Investment income
76,772
423,092
290,834
63,106
83,072
Miscellaneous:
Park dedication fees
-
-
-
-
-
Connection charges
-
18,033
2,086
Other
130,523
-
-
-
2,996
Total revenues
8,494,869
423,092
290,834
120,303
112,726
Expenditures:
Current:
General government
2,161,367
-
-
-
-
Public safety
4,005,406
-
-
Public works
1,428,549
234,909
60,972
Parks and recreation
835,636
-
-
Recycling
85,527
Economic development
-
Unallocated
19,540
Capital outlay:
General government
-
Public safety
Public works
-
Parks and recreation
2,397
Economic development
-
Debt service:
Principal retirement
-
-
Interest
424,228
291,983
Paying agent fees
2,000
2,000
Professional services
-
-
-
-
-
Total expenditures
8,538,422
426,228
293,983
234,909
60,972
Revenues over (under) expenditures
(43,553)
(3,136)
(3,149)
(114,606)
51,754
Other financing sources (uses):
Transfers in
196,930
350,000
Transfers out
-
(165,643)
-
Bonds issued
Refunding bonds issued
Bond premium
Proceeds from the sale of capital assets
-
-
Total other financing sources (uses)
196,930
(165,643)
350,000
Net increase (decrease) in fund balance
153,377
(3,136)
(3,149)
(280,249)
401,754
Fund balance - January 1
4,175,035
9,935,142
6,825,235
2,953,849
2,733,130
Fund balance - December 31
$ 4,328,412
$ 9,932,006
$ 6,822,086
$ 2,673,600
$ 3,134,884
The accompanying notes are an integral part of these financial statements.
34
Statement 4
0
Tax
Permanent
Road &
Increment
Improvement
Other
Intra
Totals
Bridge
Projects
Revolving
Governmental
Activity
Governmental Funds
CPF
CPF
CPF
Funds
Eliminations
2009
2008
$ 1,135,262
$ -
$
$ 2,444,280
$
$ 10,168,143
$ 9,695,103
-
1,951,343
-
1,951,343
1,762,119
-
-
-
291,903
525,339
741,105
66,362
-
252,145
1,654,614
1,175,205
359,494
1,096
937,758
59,507
1,421,591
1,638,006
-
-
-
878,370
1,579,659
1,724,052
-
-
-
110,779
104,930
79,615
(74,217)
15,315
72,094
1,029,683
1,508,265
-
-
41,216
41,216
133,585
-
-
-
20,119
254,903
13,553
-
20,678
881,703
(30,600)
1,018,853
800,857
2,329,029
1,944,584
973,751
4,629,315
(30,600)
19,287,903
19,322,364
-
-
-
81,295
2,242,662
2,366,574
-
-
10,004
4,015,410
3,796,965
1,603,296
28,502
188,904
3,545,132
4,843,288
-
-
1,055,489
1,891,125
1,953,822
-
-
85,527
86,631
355,287
122,361
477,648
538,293
-
-
19,540
17,999
35,640
35,640
368,094
-
299,319
299,319
-
37,352
138,766
176,118
657,837
-
1,006,470
1,008,867
355,053
-
-
79,678
3,865,000
3,865,000
3,460,000
1,462,022
2,178,233
2,253,223
5,794
9,794
11,645
-
-
-
29,471
29,471
4,000
1,640,648
355,287
28,502
8,300,535
19,879,486
20,793,102
688,381
1,589,297
945,249
(3,671,220)
(30,600)
(591,583)
(1,470,738)
9,400
-
-
2,750,141
(2,718,941)
587,530
580,343
-
(820,000)
(1,230,000)
(699,541)
2,749,541
(165,643)
(163,469)
385,000
-
385,000
630,000
955,000
955,000
-
18,781
18,781
-
-
12,264
-
12,264
553,879
9,400
(820,000)
(1,230,000)
3,421,645
30,600
1,792,932
1,600,753
697,781
769,297
(284,751)
(249,575)
-
1,201,349
130,015
2,497,381
3,634,261
1,627,996
4,904,697
39,286,726
39,156,711
$ 3,195,162
$ 4,403,558
$ 1,343,245
$ 4,655,122
$
$ 40,488,075
$ 39,286,726
0
- This page intentionally left blank -
M
CITY OF ANDOVER, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2009
Statement 5
2009 2008
Amounts reported for governmental activities in the
statement of activities (page 35) are different because:
Net changes in fund balances - total governmental funds (page 35) $ 1,201,349 $ 130,015
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlays exceeded depreciation
in the current period. (101,524) (144,513)
The net effect of various miscellaneous transactions involving capital assets is to increase
(decrease) net assets (i.e., sales, trade -ins, and donations). 371,627 (326,623)
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds. (877,131) (936,319)
The issuance of long -term debt (e.g., bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long -term debt consumes the
current financial resources of governmental funds. Neither transaction, however, has any
effect on net assets. This amount is the net effect of these differences in the treatment of
long -term debt and related items.
2,525,000 2,830,000
Vested post employment benefits are reported in the governmental funds when amounts are
paid. The statement of activities reports the benefits earned during the years. This amount
(31,265) (36,096)
is the net effect of employee benefits earned and paid during the year.
Some expenses reported in the statement of activities do not require use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.
(5,440) 39,051
Internal service funds are used by management to charge the cost of equipment maintenance
and insurance to individual funds. This amount is the portion of net revenue attributable to
governmental activities.
112,938 (5,995)
Change in net assets of governmental activities (page 31)
$ 3,195,554 $ 1,549,520
The accompanying notes are an integral part of these financial statements.
37
CITY OF ANDOVER, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2009
38
Water
Sewer
Storm Sewer
Assets:
Current assets:
Cash and cash equivalents
$ 2,356,254
$ 2,093,701
$ 92,489
Restricted assets:
Cash and cash equivalents
6,492,264
-
-
Accrued interest
118,144
6,873
236
Due from other governmental units
-
7,700
-
Accounts receivable - net
306,387
586,978
97,286
Prepaid items
10,000
11,500
-
Special assessments receivable:
Unremitted
1,581
1,452
169
Delinquent
21,957
44,357
4,117
Inventories - at cost
33,170
-
-
Total current assets
9,339,757
2,752,561
194,297
Noncurrent assets:
Capital assets:
Land
730,243
-
-
Buildings and structures
14,810,983
-
-
Machinery and equipment
322,939
517,798
471,841
Distribution and collection system
15,606,149
23,734,262
9,935,778
Construction in progress
776,911
-
-
Total capital assets
32,247,225
24,252,060
10,407,619
Less: Allowance for depreciation
(9,758,579)
(8,250,455)
(3,197,908)
Total noncurrent assets
22,488,646
16,001,605
7,209,711
Total assets
31,828,403
18,754,166
7,404,008
Liabilities:
Current liabilities:
Accounts payable
40,898
6,524
44
Contracts payable
324,733
4,362
4,491
Deposits payable
2,234
-
-
Interest payable
277,760
-
Due to other governmental units
19,290
6,874
-
Salaries payable
10,616
8,712
2,477
Bonds payable - due within one year
455,000
-
-
Compensated absences payable - due within one year
6,313
3,868
1,873
Total current liabilities
1,136,844
30,340
8,885
Noncurrent liabilities:
Other post employment benefits - due in more than one year
8,019
4,811
-
Bonds payable - due in more than one year
14,875,000
-
-
Compensated absences payable - due in more than one year
56,819
34,813
16,860
Total noncurrent liabilities
14,939,838
39,624
16,860
Total liabilities
16,076,682
69,964
25,745
Net assets:
Invested in capital assets, net of related debt
13,728,646
16,001,605
7,209,711
Unrestricted
2,023,075
2,682,597
168,552
Total net assets
$ 15,751,721
$ 18,684,202
$ 7,378,263
Net assets reported above
Amounts reported for business -type activities in the statement of net assets
are different because:
Internal service funds are used by management to charge the cost of equipment
maintenance
and insurance to individual funds. This amount is the portion of net revenue attributable to
business -type activities.
Net assets of business -type activities
The accompanying notes are an integral part of these financial statements.
38
Statement 6
Totals
Governmental Activities -
Totals Internal Service Funds
2009
2008
2009
2008
$ 4,542,444
$ 3,299,931
$ 242,533
$ 99,410
6,492,264
6,493,019
-
-
125,253
126,280
817
1,113
7,700
7,606
-
-
990,651
1,027,568
-
-
21,500
20,000
1,750
1,750
3,202
2,390
-
-
70,431
62,205
-
-
33,170
28,644
63,065
65,450
12,286,615
11,067,643
308,165
167,723
730,243
730,243
-
-
14,810,983
14,810,983
1,312,578
1,288,163
49,276,189
48,482,600
776,911
-
66,906,904
65,311,989
(21,206,942)
(19,595,937)
45,699,962
45,716,052
57,986,577
56,783,695
308,165
167,723
47,466
17,240
15,666
22,260
333,586
13,789
-
-
2,234
3,684
277,760
269,918
-
-
26,164
23,097
2,855
100
21,805
20,729
6,309
6,138
455,000
375,000
-
-
12,054
10,733
1,176,069
734,190
24,830
28,498
12,830
6,370
-
-
14,875,000
14,305,000
108,492
96,600
14,996,322
14,407,970
16,172,391
15,142,160
24,830
28,498
36,939,962
37,529,071
-
-
4,874,224
4,112,464
283,335
139,225
$ 41,814,186
$ 41,641,535
$ 283,335
$ 139,225
$ 41,814,186 $ 41,641,535
1,160 (30,012)
$ 41,815,346 $ 41,611,523
W"
CITY OF ANDOVER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2009
Net changes in net assets reported above
Amounts reported for business -type activities in the statement of activities are different because:
Internal service funds are used by management to charge the cost of equipment maintenance
and insurance to individual funds. This amount is the portion of net revenue attributable to
business -type activities.
Change in net assets of business -type activities
The accompanying notes are an intregral part of these financial statements.
40
Water
Sewer
Storm Sewer
Operating revenues:
User charges
$ 2,095,070
$ 1,961,118
$ 321,316
Meters
11,058
-
-
Permit fees
2,350
-
-
Penalties
6,605
6,879
1,008
Other
12,593
-
3,068
Total operating revenues
2,127,676
1,967,997
325,392
Operating expenses:
Personal services
408,021
310,157
209,259
Supplies
171,718
17,973
27,345
Other service charges
534,409
120,659
62,602
Disposal charges
-
893,462
-
Depreciation
856,589
510,071
244,345
Total operating expenses
1,970,737
1,852,322
543,551
Operating income (loss)
156,939
115,675
(218,159)
Nonoperating revenues (expenses):
Investment income
327,636
44,283
1,974
Bond premium
1,975
-
-
Interest expense
(659,974)
-
-
Total nonoperating revenues (expenses)
(330,363)
44,283
1,974
Income (loss) before contributions
and transfers
(173,424)
159,958
(216,185)
Capital contributions
338,740
280,801
174,048
Transfers:
Transfers in
165,643
-
-
Transfers out
(150,250)
(396,680)
(10,000)
Total transfers
15,393
(396,680)
(10,000)
Change in net assets
180,709
44,079
(52,137)
Net assets - January 1
15,571,012
18,640,123
7,430,400
Net assets - December 31
$ 15,751,721
$ 18,684,202
$ 7,378,263
Net changes in net assets reported above
Amounts reported for business -type activities in the statement of activities are different because:
Internal service funds are used by management to charge the cost of equipment maintenance
and insurance to individual funds. This amount is the portion of net revenue attributable to
business -type activities.
Change in net assets of business -type activities
The accompanying notes are an intregral part of these financial statements.
40
Statement 7
Totals
Intra Governmental Activities -
Activity Totals Internal Service Funds
Eliminations 2009 2008 2009 2008
$
$
4,377,504
$
4,119,838
$ 961,722
$ 808,392
11,058
12,252
-
-
2,350
2,650
14,492
18,349
-
-
15,661
796
34,933
13,148
4,421,065
4,153,885
996,655
821,540
927,437
860,314
325,777
311,804
217,036
241,087
244,820
286,800
(30,600)
687,070
660,282
284,772
234,140
893,462
862,827
-
-
1,611,005
1,607,777
-
(30,600)
4,336,010
4,232,287
855,369
832,744
30,600
85,055
(78,402)
141,286
(11,204)
-
373,893
372,510
2,824
5,747
1,975
-
-
-
(659,974)
(648,899)
-
-
(284,106)
(276,389)
2,824
5,747
30,600
(199,051)
(354,791)
144,110
(5,457)
-
793,589
142,133
-
165,643
163,469
(30,600)
(587,530)
(580,343)
(30,600)
(421,887)
(416,874)
-
172,651
(629,532)
144,110
(5,457)
41,641,535
42,271,067
139,225
144,682
$
$
41,814,186
$
41,641,535
$ 283,335
$ 139,225
$
172,651
$
(629,532)
31,172
538
$
203,823
$
(628,994)
CSI
CITY OF ANDOVER MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2009
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers
Payment to employees
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Receipt of advances from other funds
Payment of advances to other funds
Transfers in
Transfers out
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Interest paid on debt
Receipt of bonds
Receipt of bond premium
Payment of bonds
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Investment income
Net increase in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income to net cash provided
(used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units
Decrease (increase) in accounts receivable
Decrease (increase) in prepaid items
Decrease (increase) in special assessments
Decrease (increase) in inventory
Increase (decrease) in accounts payable
Increase (decrease) in contracts payable
Increase (decrease) in deposits payable
Increase (decrease) in due to other governmental units
Increase (decrease) in salaries payable
Increase (decrease) in other post employment benefits
Increase (decrease) in compensated absences
Total adjustments
Net cash provided (used) by operating activities
Noncash investing, capital and financing activities:
Assets contributed to the Enterprise Funds
The accompanying notes are an integral part of these financial statements.
El
Water
Sewer
Storm Sewer
$ 2,193,431
$ 1,936,536
$ 318,883
(365,707)
(1,026,200)
(90,647)
(395,430)
(303,710)
(207,548)
1,432,294
606,626
20,688
165,643
(150,250)
(396,680)
(10,000)
15,393
(396,680)
(10,000)
(776,911)
(7,322)
(17,093)
(652,132)
1,025,000
1,975
(375,000)
(777,068)
(7,322)
(17,093)
325,045
47,717
2,158
995,664
250,341
(4,247)
7,852,854
1,843,360
96,736
$ 8,848,518
$ 2,093,701
$ 92,489
$ 156,939
$ 115,675
$ (218,159)
856,589
510,071
244,345
-
(94)
-
57,691
(14,887)
(5,887)
1,750
(3,250)
-
8,064
(16,480)
(622)
(4,526)
-
-
25,949
5,626
(1,349)
317,024
2,124
649
(1,450)
-
-
1,673
1,394
-
366
285
425
4,197
2,263
-
8,028
3,899
1,286
1,275,355
490,951
238,847
$ 1,432,294
$ 606,626
$ 20,688
$ 338,740
$ 280,801
$ 174,048
Statement 8
43
Totals
Govemmental Activities -
Totals
Internal Service Funds
2009
2008
2009
2008
$ 4,448,850
$ 4,081,514
$ 996,655
$ 821,540
(1,482,554)
(1,822,376)
(531,046)
(517,411)
(906,688)
(830,466)
(325,606)
(310,304)
2,059,608
1,428,672
140,003
(6,175)
-
-
(60,000)
(20,000)
-
-
60,000
20,000
165,643
163,469
-
-
(556,930)
(551,194)
(391,287)
(387,725)
(801,326)
(131,066)
(652,132)
(654,374)
1,025,000
1,975
(375,000)
(360,000)
(801,483)
(1,145,440)
-
374,920
369,241
3,120
5,391
1,241,758
264,748
143,123
(784)
9,792,950
9,528,202
99,410
100,194
$ 11,034,708
$ 9,792,950
$ 242,533
$ 99,410
$ 54,455
$ (107,551)
$ 141,286
$ (11,204)
1,611,005
1,607,777
-
(94)
(441)
36,917
(52,612)
(1,500)
(3,500)
(9,038)
(19,318)
-
-
(4,526)
(5,883)
2,385
1,425
30,226
(17,978)
(6,594)
2,104
319,797
(2,902)
(100)
(1,450)
1,450
-
-
3,067
(218)
2,755
100
1,076
6,373
171
1,500
6,460
6,370
-
-
13,213
17,105
-
2,005,153
1,536,223
(1,283)
5,029
$ 2,059,608
$ 1,428,672
$ 140,003
$ (6,175)
$ 793,589
$ 142,133
$ -
$
43
CITY OF ANDOVER, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
Agency Funds
December 31, 2009
Assets:
Cash and investments
Liabilities:
Accounts payable
Deposits payable
Total liabilities
Statement 9
2009 2008
$ 249,921 $ 488,385
131 11,001
249,790 477,384
$ 249,921 $ 488,385
The accompanying notes are an integral part of these financial statements.
44
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Andover was incorporated in 1974 and operates under the State of Minnesota Statutory Plan A form of government. The
governing body consists of a five- member City council elected by voters of the City.
The financial statements of the City have been prepared in conformity with generally accepted accounting principles as applied to
governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant
accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the
City (the primary government) and its component units. The component units discussed below are included in the City's
reporting entity because of the significance of their operational or financial relationships with the City.
COMPONENT UNITS
In conformity with generally accepted accounting principles, the financial statements of the component units have been
included in the financial reporting entity as blended component units.
The Andover Economic Development Authority (EDA) is an entity legally separate from the City. However, for financial
reporting purposes, the EDA is reported as if it were part of the City's operations because the members of the City Council
serve as EDA Board Members and its purpose is to promote development within the City. The activity of the EDA is reported
in the EDA General Special Revenue Fund. Separate financial statements are not prepared for the EDA.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report
information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business -o pe activities, which rely to a significant extent
on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or business -type activity
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business -type
activity. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business -type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business -type activity. Taxes and other items not
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis
Of accounting, as are the Proprietary Fund financial statements. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. The City's only fiduciary funds are agency funds. Agency funds are custodial in
nature (assets equal liabilities) and do not involve measurement of results of operations.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are
EIR
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible
to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when
cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
The 2006 EDA Public Facilio) Lease Revenue Refunding Bonds Debt Service Fund (DSF) was established to refund
portions of debt associated with the construction of the Andover YMCA Community Center.
The 2007 EDA Public Facility Lease Revenue Refunding Bonds DSF was established to refund portions of debt associated
with the construction of the Andover YMCA Community Center.
The Water Trunk Capital Projects Fund (CPF) is used to account for water access fees and trunk improvements as part of
development. It is also used to reserve monies that will be needed for capital infrastructure replacements in the future.
The Sewer Trunk CPF is used to account for sewer access fees and sanitary sewer improvements.
The Road and Bridge CPF accounts for all road projects and the pavement management program, which includes annual
seal coating, crack sealing and overlays for roads.
The Tax Increment Projects CPF is used to account for activities in TIE districts 1 -1, 1 -2, 1 -3, 1 -4 and all TIE land sales
and expenditures to reach the goals of the TIE district plans.
The Permanent Improvement Revolving CPF serves as a long -term funding source for large capital improvement
expenditures.
The City reports the following major proprietary funds:
The Water Fund accounts for the water service charges, which are used to finance the water system operating expenses.
The Sewer Fund accounts for the sewer service charges, which are used to finance the sanitary sewer system operating
expenses.
The Storm Sewer Fund accounts for the storm sewer utility charges, which are used to finance the storm sewer operating
expenses.
Additionally, the City reports the following fund types:
Internal Service Funds (ISF) are used to provide equipment maintenance and insurance to other departments of the City
on a cost reimbursement basis.
The Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations, and /or other governmental units. It is used to account for the collection and distribution of funds
relating to development activities and retiree insurance premiums.
Private- sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both
the government -wide and proprietary -fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following
BS
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
subsequent private- sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The
City has elected not to follow subsequent private- sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements.
Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved
external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve
other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the water and sewer enterprise funds are charges to customers for
sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues
and expenses.
When both restricted and unrestricted resources are available for an allowable use, it is the City's policy to use restricted
resources first, and then unrestricted resources as they are needed.
D. BUDGETS
Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets
are legally adopted for the General and Special Revenue Funds. Budgeted expenditure appropriations lapse at year -end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are
recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not
considered necessary to assure effective budgetary control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the
following January 1. The budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through City Council action.
4. Expenditures may legally exceed budgeted appropriations at the fund level through City Council action. Also, the
City Council may authorize transfers of budgeted amounts between departments within any fund.
5. Formal budgetary integration is employed as a management control device during the year for the General Fund and
Special Revenue Funds. Budgetary control for Capital Projects Funds is accomplished through the use of project
controls.
6. The legal level of budgetary control is at the department level for the General Fund and at the fund level for the
Special Revenue Funds. Also inherent in this controlling function is the management philosophy that the existence
of a particular item or appropriation in the approved budget does not automatically mean that it will be spent. The
budget process has flexibility in that, where need has been properly demonstrated, an adjustment can be made within
the department budget by the City Administrator or between departments by the City Council.
47
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
7. The City Council made supplemental budget appropriations throughout the year. Individual amendments were not
material in relation to the original appropriations which were adjusted.
The following is a listing of General and Special Revenue Funds whose expenditures exceed budget appropriations:
F inal Ov er
Budget Actual Budget
Special Revenue Funds:
Capital Equipment Reserve S 74,000 S 94,317 S 20,317
Construction Seal Coating 25,000 62,920 37,920
The expenditures over budget were funded by greater than anticipated revenues and /or available fund balance.
F. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments. Earnings from such
investments are allocated to the individual funds on the basis of applicable cash balance participation of each fund.
The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund
shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate
resources are received. These interfund balances are eliminated on the government -wide financial statements.
Investments are stated at fair value, based upon quoted market prices. Short -term investments, such as commercial paper and
banker's acceptances, are reported as amortized cost.
For purposes of the Statement of Cash Flows of Proprietary Fund Types, cash equivalents are defined as short -term, highly
liquid investments that are both:
a. readily convertible to known amounts of cash, or
b. so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
The City's policy considers cash equivalents to be those that meet the above criteria and have original maturities of three
months or less.
G. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided or services
rendered. Short -term interfund loans are classified as "interfund receivables /payables." All short -term interfund receivables
and payables at December 31, 2009 are planned to be eliminated in 2010. Long -term interfund loans are classified as
"interfund loan receivable /payable." Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
Interfund loan receivables, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
Property taxes and special assessments receivable have been reported net of estimated uncollectible accounts. (See Note 1 H
and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established.
Uncollectible amounts are not material for other receivables and have not been reported.
48
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
H. PROPERTY TAX REVENUE RECOGNITION
The City levies its property tax for the subsequent year during the month of December and it is certified to Anoka. County.
December 30th is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such
taxes become a lien on the following January 1. Anoka County is the collecting agency for the levy and remits the collections
to the City three times a year. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable.
The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity
of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments,
except for certain prepayments paid directly to the City.
The County Auditor submits a list of taxes to be collected on each parcel of property to the County Treasurer in January of
each year. The County Treasurer collects all taxes and is required to mail copies of all personal property tax statements by
April 15, and copies of all real estate tax statements by April 15, of each year. Property owners are required to pay one -half of
their real estate taxes due by May 15 and the balance by October 15.
If taxes due May 15 are not paid on time, a penalty of 3% is assessed on homesteaded property and 7% on nonhomesteaded
property. An additional 1% penalty is added each month the taxes remain unpaid, until October 15. If the taxes due May 15
are not paid by October 15, a 2% penalty per month is added to homesteaded property and 4% per month to nonhomesteaded
property until January 1.
If the taxes are not paid by January 1, further penalties are added. Penalties and interest apply to both taxes and special
assessments. There are some exceptions to the above penalties, but they are not material.
Within 30 days after the tax settlement date, the County Treasurer is required to pay 70% of the estimated collections of taxes
and special assessments to the City Treasurer. The County Treasurer must pay the balance to the City Treasurer within 60
days after settlement, provided that after 45 days interest accrues at the rate of 8% per annum.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not
material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the
current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January
are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the
following January) and taxes and credits not received at the year -end are classified as delinquent and due from County taxes
receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because
they are not available to finance current expenditures.
L SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment
improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years
usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by
the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future
installments without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is
made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go
delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the
County's costs of administering all tax forfeit properties. Pursuant to State Statutes, a property shall be subject to a tax forfeit
sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject
to such sale after five years.
BP;
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council.
Uncollectible special assessments are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes revenue from special assessments when it becomes measurable and available to finance expenditures of
the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as
revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special
deferred assessments receivable in governmental funding are completely offset by deferred revenues.
J. INVENTORIES
Inventories of the Governmental Funds and the Proprietary Funds are stated at cost, which approximates market, using the
first -in, first -out (FIFO) method.
Inventories of Governmental Funds are recorded as expenditures when consumed rather than when purchased.
K. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items), are reported in the applicable governmental or business -type activities columns in the government -wide financial
statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not
rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical
cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The City has chosen the modified approach for reporting street and trail system capital assets.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets
constructed. For the year ended December 31, 2009, no interest was capitalized in connection with construction in progress.
Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight
line method over the following estimated useful lives:
Assets Life
Buildings and improvements
10 - 30 years
Furniture and equipment
5 - 10 years
Machinery and equipment
5 - 10 years
Other park improvements
10 - 30 years
Storm sewer
50 years
Distribution and collection systems
50 years
A
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
The City elected to use the modified approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets
and trails. The City conducted a physical assessment in the Fall of 2007 of the condition of the streets and trails constructed
since 1974. This condition assessment will be performed every 3 years. Each segment of City owned street or trail was
assigned a physical condition based on potential defects. An Overall Condition Index (OCI) was assigned to each segment.
The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and
100 is assigned to those segments that have the characteristic of a new street or trail. The following conditions were defined:
Range Description
86-100
Excellent
71-85
Very good
56-70
Good
41
-55
Fair
26-40
Poor
11-25
Very poor
0-
10
Substandard
The City's policy relative to maintaining the street and trail assets is to achieve an average rating of "Good" for all segments.
This acceptable rating allows minor cracking and patching of the pavement along with minor roughness that could be
noticeable to the users of the system.
M. COMPENSATED ABSENCES
City employees earn vacation and sick pay accruing each payroll period. Unused vacation can be accrued by the employees up
to a maximum of 200 hours as of the anniversary date of the individual's employment with the City, unless a specific
authorization is granted to an employee. All vacation pay is accrued when incurred in the government -wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements.
Employees can also accrue an unlimited amount of unused sick leave. Employees with two or more years of service are
entitled to receive severance pay equal to a percentage of unused sick pay ranging from 20 -50 percent based on years of
service, up to a maximum of 400 hours. The liability for severance pay is accounted for the same as accrued vacation pay.
N. LONG -TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and
other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are immaterial and are
expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
O. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for amounts not appropriable for
expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of
financial resources.
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute
reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund, are
62
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
recorded as expenditures /expenses in the reimbursing fund and as reductions of expenditures /expenses in the fund that is
reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash
between funds. All other interfund transactions are reported as transfers.
Q. RESTRICTED ASSETS
Certain assets in the water fund are restricted for future debt service payments.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires
management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual
results could differ from such estimates.
S. RECLASSIFICATIONS
Certain amounts presented in prior year data have been reclassified in order to be consistent with the current year's
presentation.
T. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET
AND THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net
assets — governmental activities as reported in the government -wide statement of net assets. One element of that
reconciliation explains that "long -term liabilities, including bonds payable and other post employment benefits, are not
due and payable in the current period and therefore are not reported in the funds." The details of this ($51,346,517)
difference are as follows:
Bonds payable $(49,845,000)
Accrued interest payable (892,550)
Other post employment benefits (67,361)
Compensated absences (541, 606)
Net adjustment to reduce fund balance - total governmental
funds to arrive at net assets- governmental activities $(51,346,517)
Another element of that reconciliation states that "internal service funds are used by management to charge the cost of
equipment maintenance and insurance to individual funds. The assets and liabilities are included in the governmental
statement of net assets along with a deduction of net revenue attributable to business -type activities." The details of this
$282,175 difference are as follows:
Internal S ervice Funds netassets $ 283,335
Net revenue attributable to business -type activities (1,160)
Net adjustment to increase fund balance - total governmental
funds to arrive at net assets - governmental activities $ 282,175
6%
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES AND THE GOVERNMENT -WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances — total governmental funds and changes in net assets of governmental activities as
reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental
funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense." The details of this ($101,524) difference are as
follows:
Capital outlay $ 1,519,944
Depreciation expense (1,621,468)
Netadjustment to decrease netchanges in fund balances - total
governmental funds to arrive at changes innet assets of
governmental activities $ (101,524)
Another element of that reconciliation states that "The net effect of various miscellaneous transactions involving capital
assets (i.e., sales, trade -ins, and donations) is to increase (decrease) net assets." The details of this $371,627 difference
are as follows:
In the statement of activities, only the gain on the sale of capital assets is
reported. However, in the governmental funds, the proceeds from the sale
increase financial resources. Thus, the change in net assets differs from the
change in fund balance by the cost of the capital assets sold $ (6,120)
Donations of capital assets increase net assets in the statement of activities,
but do not appear in the governmental funds because they are not financial
resources. 377,747
Net adjustment to increase net changes in fund balances - total governmental
funds to arrive at changes in net assets of governmental activities. $ 371,627
Another element of that reconciliation states "Revenues on the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds." The details of this ($877,131) difference are as follows:
General property taxes deferred revenue:
At December 31, 2008 $ (275,364)
At December 31, 2009 282,740
Tax increment taxes deferred revenue:
At December 31, 2008 (50,921)
At December 31, 2009 30,247
Special assessments deferred revenue:
At December 31, 2008 (5,378,324)
At December 31, 2009 4,526,206
Notes receivable deferred revenue:
At December 31, 2008 (1,418,488)
At December 31, 2009 1,406,773
Netadjustments to decrease net changes in fund balances -
total governmental fundsto arrive at changes in netassets
of governmental activities $ (877,131)
53
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Another element of that reconciliation states "the issuance of long -term debt (e.g., bonds, leases) provides current
financial resources to governmental funds, while the repayment of the long -term debt consumes the current financial
resources of governmental funds." Neither transaction, however, has any effect on net assets. The details of this
$2,525,000 difference is as follows:
Debt issued or incurred:
Issuance of certificates of indebtedness (385,000)
Issuance of state aid bonds (955,000)
Principal repayments:
Revenue bonds
390,000
Capital improvement bonds
380,000
Special assessment bonds
1,685,000
Tax increment bonds
760,000
Certificates of indebtedness
490,000
State aid bonds
160,000
Netadjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities
$ 2,525,000
Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the
use of current financial resources and therefore are not reported as expenditures in governmental funds." The details of
this ($5,440) difference are as follows:
Compensated absences $ (36,713)
Accrued interest 31,273
Netadjustment to decrease netchanges in fund balances - total
governmental funds to arrive at changes innet assets of
governmental activities $ (5,440)
Another element of that reconciliation states that "internal service funds are used by management to charge the cost of
equipment maintenance and insurance to individual funds. This amount is the portion of net revenue attributable to
governmental activities." The details of this $112,938 difference are as follows:
Internal Service Funds change in net as sets $ 144,110
Net revenue attributable to business -type activities (31,172)
Net adjustment to increase fund balance - total governmental
funds to arrive at net assets - governmental activities $ 112,938
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
In accordance with Minnesota. Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of
which are members of the Federal Reserve System.
Minnesota. Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
54
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Clerk/Treasurer or in a financial
institution other than that furnishing the collateral. Authorized collateral includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service
available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national
bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA"
or better by a national bond rating service;
d) Unrated general obligation securities of a local government with taxing powers may be pledged as collateral against funds
deposited by that same local government entity;
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence
that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation; and
I) Time deposits that are fully insured by the Federal Deposits Insurance Corporation.
Custodial Credit Risk — Deposits: Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be
returned to it. State statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of
collateral pledged must equal 110% of deposits not covered by insurance or bonds. As of December 31, 2009, the bank balance of
the City's deposits was covered by federal depository insurance or covered by collateral pledged and held in the City's name,
except for $70,158 was uncollateralized.
INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created
by an act of congress, excluding mortgage- backed securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments
are in securities described in (a) above, general obligation tax- exempt securities, or repurchase or reverse repurchase
agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
1) any security which is a general obligation of any state or local government with taxing powers which is rated "A" or
better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers which is rated "AA" or
better by a national bond rating service; and
3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the State of Minnesota and is
rated "A" or better by a national bond rating agency.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in
270 days or less.
I) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization
exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York;
certain Minnesota securities broker - dealers; or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178,
subdivision 5; or 475.61, subdivision 6.
!.1i
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
As of December 31, 2009, the City had the following investments and maturities:
D epo sits 4,582,341
Total cash and investments $5 1, 626, 040
The following is a reconciliation of the City's total cash and investment balances at December 31, 2009:
Government -wide statement of net assets:
Cash and investments $ 26,746,280
Cash and investments with escrow agent 24,629,839
Fiduciary funds statement of net assets 249,921
Total $ 51,626,040
Custodial credit risk - investments — For investments in securities, custodial credit risk is the risk that in the event of a failure of the
counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party.
As of December 31, 2009, $250,000 of the City's $47,043,699 investments was uninsured and unregistered, with securities held in
the City's name.
Interest rate risk - The City has a formal investment policy that states the City will minimize the risk that the market value of
securities in the portfolio will fall due to the changes in general interest rates, by:
1) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior to maturity.
2) Investing operating funds primarily in shorter -term securities, money market mutual funds or similar investment pools.
FNMA REMIC — The City invests in REMIC's in accordance with State law and the City's investment policy. These securities are
based on cash flows from payments on underlying mortgages. Therefore, they are sensitive to prepayments by mortgages, which
may result from a decline in interest rates.
Credit Risk - The City has a formal investment policy that states the City will minimize the credit risk, the risk of loss due to the
failure of the security issuer or backer, by:
1) Limiting investments to the safest types of securities.
2) Pre - qualifying the financial institutions, broker /dealers, intermediaries and advisers with which the City will do business.
611
Credit
Fair
Investment Type
Rating
Value
Money market
N/A
$ 6,409,669
Certificates of deposit
N/A
5,749,351
Local governments
A/Al /A2
1,254,864
2,822,992
AA1 /AA2 /AA3
2,014,807
-
AAA
1,913,209
U.S. agencies
AAA
29,170,936
FNMA REMIC
N/A
358,754
347,592
N/A
172,109
Total investments
2,957,351
47,043,699
D epo sits 4,582,341
Total cash and investments $5 1, 626, 040
The following is a reconciliation of the City's total cash and investment balances at December 31, 2009:
Government -wide statement of net assets:
Cash and investments $ 26,746,280
Cash and investments with escrow agent 24,629,839
Fiduciary funds statement of net assets 249,921
Total $ 51,626,040
Custodial credit risk - investments — For investments in securities, custodial credit risk is the risk that in the event of a failure of the
counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party.
As of December 31, 2009, $250,000 of the City's $47,043,699 investments was uninsured and unregistered, with securities held in
the City's name.
Interest rate risk - The City has a formal investment policy that states the City will minimize the risk that the market value of
securities in the portfolio will fall due to the changes in general interest rates, by:
1) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior to maturity.
2) Investing operating funds primarily in shorter -term securities, money market mutual funds or similar investment pools.
FNMA REMIC — The City invests in REMIC's in accordance with State law and the City's investment policy. These securities are
based on cash flows from payments on underlying mortgages. Therefore, they are sensitive to prepayments by mortgages, which
may result from a decline in interest rates.
Credit Risk - The City has a formal investment policy that states the City will minimize the credit risk, the risk of loss due to the
failure of the security issuer or backer, by:
1) Limiting investments to the safest types of securities.
2) Pre - qualifying the financial institutions, broker /dealers, intermediaries and advisers with which the City will do business.
611
Investment Maturities (in Years)
Less Than
More Than
1
1 -5
6 -10
10
$ 6,409,669
2,822,992
2,926,359
-
-
321,751
766,145
166,968
-
623,674
1,034,658
-
356,475
347,592
864,349
197,776
503,492
2,957,351
23,868,470
880,473
1,464,642
-
53,577
88,302
216,875
-
-
172,109
-
$13,483,029
$29,513,558
$ 1,505,628
$ 2,541,484
D epo sits 4,582,341
Total cash and investments $5 1, 626, 040
The following is a reconciliation of the City's total cash and investment balances at December 31, 2009:
Government -wide statement of net assets:
Cash and investments $ 26,746,280
Cash and investments with escrow agent 24,629,839
Fiduciary funds statement of net assets 249,921
Total $ 51,626,040
Custodial credit risk - investments — For investments in securities, custodial credit risk is the risk that in the event of a failure of the
counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party.
As of December 31, 2009, $250,000 of the City's $47,043,699 investments was uninsured and unregistered, with securities held in
the City's name.
Interest rate risk - The City has a formal investment policy that states the City will minimize the risk that the market value of
securities in the portfolio will fall due to the changes in general interest rates, by:
1) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior to maturity.
2) Investing operating funds primarily in shorter -term securities, money market mutual funds or similar investment pools.
FNMA REMIC — The City invests in REMIC's in accordance with State law and the City's investment policy. These securities are
based on cash flows from payments on underlying mortgages. Therefore, they are sensitive to prepayments by mortgages, which
may result from a decline in interest rates.
Credit Risk - The City has a formal investment policy that states the City will minimize the credit risk, the risk of loss due to the
failure of the security issuer or backer, by:
1) Limiting investments to the safest types of securities.
2) Pre - qualifying the financial institutions, broker /dealers, intermediaries and advisers with which the City will do business.
611
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
A list will be maintained of financial institutions authorized to provide investment services. In addition, a list also will be
maintained of approved security broker /dealers selected by creditworthiness. These may include "primary" dealers or
regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3 -1.
All financial institutions and broker /dealers who desire to become qualified for investment transactions must supply:
audited financial statements, proof of National Association of Securities Dealers (NASD) certification, proof of state
registration, completed broker /dealer questionnaire, and certification of having read and understood and agreeing to
comply with the City's investment policy.
An annual review of the financial condition and registration of qualified financial institutions and broker /dealers will be
conducted by the City Administrator.
Concentration of Credit Risk - More than 63% of the City's investments are in various holdings with U.S. agencies; Federal Home
Loan Bank (1.5 %), Federal National Mortgage Association (4.5 %), Federal Home Loan Mortgage Corporation (5.8 %) and U.S.
Treasury (51.3 %). The City's policy on concentration of investments is as follows:
1) Diversification - The investments shall be diversified by:
a) investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S.
Treasury securities),
b) limiting investment in securities that have higher credit risks,
c) investing in securities with varying maturities, and
d) continuously investing a portion of the portfolio in readily available funds such as local government investment
pools (LGIPs), money market funds or overnight repurchase agreements to ensure that appropriate liquidity is
maintained in order to meet ongoing obligations.
2) 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 lifes, of more than five (5) years from the date of purchase or in accordance with state and local statutes and
ordinances.
Reserve funds and other funds with longer -term investment horizons may be invested in securities exceeding five (5)
years if the maturity of such investments are made to coincide as nearly as practicable with the expected use of funds.
The intent to invest in securities with longer maturitues shall be disclosed in writing to the legislative body.
Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be
continuously invested in readily available funds such as local government investment pools, money market funds, or
overnight repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2009 are as follows:
57
Delinquent
Delinquent
Special
Property
Tax
Assessment
Note
Taxes
Increment
Receivable
Receivable
Total
Maj or F unds :
General Fund
$ 75,129
$
$
$
$ 75,129
Water Trunk CPF
-
293,910
293,910
Sewer Trunk CPF
-
63,283
-
63,283
Road and Bridge CPF
13,200
1,101,048
22,951
1,137,199
Tax Increment Projects CPF
-
6,049
-
1,431,000
1,437,049
Permanent Improvement Revolving CPF
-
-
2,065,923
-
2,065,923
Nonmajor Funds
27,595
-
369,313
55,189
452,097
Total
$ 115,924
$ 6,049
$3,893,477
$ 1,509,140
$5,524,590
57
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to
liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been
received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the
governmental funds were as follows:
Delinquent property taxes receivable:
General Fund
Road & Bridge CPF
Nonmajor Funds
Delinquent tax increment collections:
Tax Increment Projects CPF
Special assessmentsnot yetdue:
General Fund
Water Trunk CPF
Sewer Trunk CPF
Road & Bridge CPF
Tax Increment Projects CPF
Permanent Improvement Revolving CPF
Nonmajor Funds
Notes receivable not yet due:
Road & Bridge CPF
Tax Increment Projects CPF
Nonmajor Funds
Unearned construction seal coat fees:
Nonmajor Funds
Total
Note 4 LOANS RECEIVABLE
Unavailable Unearned
$ 183,242
32,195
67,304
30,247
17,013
343,023
78,510
1,267,581
1,032
2,392,124
426,922
30,761
1,312,000
64,012
59,227
$ 6,245,966 $ 59,227
As part of a development agreement entered into with a private developer in June 2006, the City received a promissory note for $50,000.
The note is for intersection improvements on Hanson Blvd. The note bears an interest rate of 5.5% and calls for 16 semi - annual
payments to be made to the City through July 2014. As of December 31, 2009, the remaining balance due of $30,761 is offset by
deferred revenue, as it is not available to finance current activities.
As part of a development agreement entered into with a private developer in June 2005, the City received promissory notes for
$1,624,000. The notes are for the purchase of land within Andover Station North. The notes beared an interest rate of 6% through
December 31, 2008 and then was amended to 4.5% until December 31, 2012, the payoff date. As of December 31, 2009, the remaining
balance due of $1,431,000 is offset by deferred revenue, as it is not available to finance current activities.
As part of a rental rehabilitation revolving loan program, the City entered into a loan agreement with a property owner in October 2006.
The loan is for the rehabilitation of a rental property located within the City. The loan bears an interest rate of 3.0 % and calls for 180
equal monthly payments to be made to the City through November 2021. As of December 31, 2009, the remaining balance due of
$42,938 is offset by deferred revenue, as it is not available to finance current activities.
As part of a housing rehabilitation revolving loan program, the City entered into a loan agreement with a property owner in July 2007.
The loan is for the rehabilitation of a property located within the City. The loan bears an interest rate of 3.0 % and calls for 57 equal
monthly payments to be made to the City through August 2012. As of December 31, 2009, the remaining balance due of $4,391 is offset
by deferred revenue, as it is not available to finance current activities.
58
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
As part of a housing rehabilitation revolving loan program, the City entered into a loan agreement with a property owner in July 2008.
The loan is for the rehabilitation of a property located within the City. The loan bears an interest rate of 3.0 % and calls for 84 equal
monthly payments to be made to the City through September 2015. As of December 31, 2009, the remaining balance due of $16,683 is
offset by deferred revenue, as it is not available to finance current activities.
Note 5 CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the government -wide
statement of net assets. The City elected to use the modified approach as defined by GASB Statement No. 34 for infrastructure reporting
for its streets and trails. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more
detailed discussion of the modified approach is presented in the Required Supplementary Information section of this report. All other
capital assets including other infrastructure systems were reported using the basic approach whereby accumulated depreciation and
depreciation expense have been recorded. Capital asset activity for the year ended December 31, 2009 was as follows:
Primary Government
Governmental activities:
Capital assetsnotbeing depreciated
Land and improvements
Streets and trails
Construction in progress
Total capital assets not being depreciated
Capital assetsbeing depreciated:
Buildings and improvements
Furniture and equipment
Machinery and equipment
Other park improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Furniture and equipment
Machinery and equipment
Other park improvements
Total accumulated depreciation
Total capital assets being depreciated -net
Beginning
Balance Additions
$ 8,041,308 $ 955,763
79,153,416 394,276
309,414 -
Ending
Deletions Balance
$ - $ 8,997,071
- 79,547,692
(309,414) -
87,504,138
1,350,039
(309,414)
88,544,763
26,381,584
275,875
-
26,657,459
364,254
46,862
-
411,116
6,418,351
426,863
(81,484)
6,763,730
5,019,920
107,466
-
5,127,386
38,184,109
857,066
(81,484)
38,959,691
4,453,300
893,836
-
5,347,136
149,055
54,453
-
203,508
4,488,134
419,433
(75,364)
4,832,203
1,447,989
253,746
-
1,701,735
10,538,478 1,621,468 (75,364) 12,084,582
27,645,631 (764,402) (6,120) 26,875,109
Governmental activities capital assets - net $ 115,149,769 $ 585,637 $ (315,534) $ 115,419,872
6T
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Primary Government
Business -type activities:
Capital assetsnotbeing depreciated:
Land and improvements
Construction in progress
Total capital assets not being depreciated
Capital assetsbeing depreciated:
Buildings and improvements
Furniture and equipment
Machinery and equipment
Collection and distribution
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Furniture and equipment
Machinery and equipment
Collection and distribution
Total accumulated depreciation
Total capital assets being depreciated - net
Business -type activities capital assets - net
Beginning
Ending
Balance
Additions Deletions
Balance
Public safety
$ 730,243
$ - $ -
$ 730,243
-
776,911 -
776,911
730,243
776,911 -
1,507,154
3,984
Total depreciation expense - governmental activities
14,810,983
- -
14,810,983
61,390
- -
61,390
1,226,773
24,415 -
1,251,188
48,482,600
793,589 -
49,276,189
64,581,746
818,004 -
65,399,750
$
1,611,005
4,596,132
522,319 -
5,118,451
17,221
8,483 -
25,704
817,193
95,125 -
912,318
14,165,391
985,078 -
15,150,469
19,595,937
1,611,005 -
21,206,942
44,985,809
(793,001) -
44,192,808
$ 45,716,052
$ (16,090) $ -
$45,699,962
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government
$
99,761
Public safety
240,606
Public works
283,410
Parks and recreation
993,707
Economic development
3,984
Total depreciation expense - governmental activities
$
1,621,468
Business -type activities:
Water
$
856,589
Sewer
510,071
Storm sewer
244,345
Total depreciation expense - business -type activities
$
1,611,005
CONSTRUCTION COMMITMENTS
At December 31, 2009, the City had construction project contracts in progress. The commitments related to the remaining contract
balances are summarized as follows;
Contract Remaining
P roj ect # Project Amount Commitment
09 -11 Water Treatment Plant Expansion $ 699,500 $ 273,865
Note 6 LONG -TERM DEBT
The City issues general obligation bonds and equipment certificates to provide funds for the acquisition and construction of major capital
facilities. The reporting entity's long -term debt is segregated between the amounts to be repaid from governmental activities and
amounts to be repaid from business -type activities.
CYt
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Tax Increment Bonds:
2003B G.O. Tax Increment Refunding Bonds 6/1/2003
2004B G.O. Tax Increment Refunding Bonds 3/16/2004
Total tax increment bonds
Certificates of Indebtedness:
2006B G.O. Equipment Certificates
2007A G.O. Equipment Certificates
2008A G.O. Equipment Certificates
2009A G.O. Equipment Certificates
Total certificates of indebtedness
Capital Improvement Bonds:
2004A G.O. Capital Improvement Bonds
Permanent Improvement Revolving (PIR) Bonds:
2003A G.O. PIR Bonds
2006A G.O. PIR Bonds
8/1/2010 2.00 -3.00% 1,530,000 250,000
2/1/2013 2.00 -3.25% 4,260,000 2,265,000
5,790,000 2,515,000
5/10/2006
Issue
Maturity
Interest
Original
Payable
2/1/2011
Date
Date
Rate
Issue
12/31/09
GOVERNMENTAL ACTIVITIES:
630,000
480,000
3/26/2009
2/1/2012
2.00 -2.25%
General Obligation Revenue Bonds:
385,000
2,235,000
2004 EDA Pub Fac Lease Rev Bonds
4/23/2004
2/1/2014
2.125 - 5.400%
$ 19,580,000
$ 18,630,000
2006 EDA Pub Fac Lease Rev Ref Bonds
12/1/2006
2/1/2034
4.00 -4.50%
10,000,000
10,000,000
2007 EDA Pub Fac Lease Rev Ref Bonds
1/1/2007
2/1/2034
4.00 -4.50%
6,865,000
6,865,000
Total general obligation revenue bonds
36,445,000
35,495,000
Special Asses sment Bonds:
2005A G.O. Improvement Bonds
4/28/2005
2/1/2011
2.95 -3.65%
3,560,000
2,450,000
Tax Increment Bonds:
2003B G.O. Tax Increment Refunding Bonds 6/1/2003
2004B G.O. Tax Increment Refunding Bonds 3/16/2004
Total tax increment bonds
Certificates of Indebtedness:
2006B G.O. Equipment Certificates
2007A G.O. Equipment Certificates
2008A G.O. Equipment Certificates
2009A G.O. Equipment Certificates
Total certificates of indebtedness
Capital Improvement Bonds:
2004A G.O. Capital Improvement Bonds
Permanent Improvement Revolving (PIR) Bonds:
2003A G.O. PIR Bonds
2006A G.O. PIR Bonds
8/1/2010 2.00 -3.00% 1,530,000 250,000
2/1/2013 2.00 -3.25% 4,260,000 2,265,000
5,790,000 2,515,000
5/10/2006
2/1/2010
3.60 -3.65%
460,000
160,000
3/13/2007
2/1/2011
4.00%
760,000
395,000
9/23/2008
2/1/2012
3.50%
630,000
480,000
3/26/2009
2/1/2012
2.00 -2.25%
385,000
385,000
2,235,000
1,420,000
3/16/2004
2/1/2017
2.00 -3.75%
3,890,000
2,775,000
6/1/2003 2/1/2010
5/10/2006 2/1/2014
Totalpermanent improvement revolving bonds
State Aid Bonds:
200 I G.O. State Aid Street Bonds 6/5/2001
2009A G.O. State Aid Street Refunding Bonds 3/26/2009
Total state aid street bonds
Total- bonded indebtedness
Compensated absences payable
Total governmental activities indebtedness
BUSINESS -TYPE ACTIVITIES:
General Obligation Revenue Bonds:
2002 G.O. Water Revenue Bonds
2007B G.O. Water Revenue Refunding Bonds
2009A G.O. Water Revenue Bonds
Total general obligation revenue bonds
Compensated absences payable
Total business -type activities indebtedness
Total City indebtedness
2.00 -2.60% 4,580,000
820,000
3.60 -3.85% 2,450,000
1,815,000
7,030,000
2,635,000
2/1/2010 2.90 -5.00% 2,755,000
1,600,000
2/1/2015 2.25 -2.80% 955,000
955,000
3,710,000
2,555,000
62,660,000
49,845,000
- 541,606
62,660,000 50,386,606
5/9/2002 8/1/2012 2.30 -5.00% 9,780,000
7,735,000
3/13/2007 2/1/2023 4.00 -4.25% 6,570,000
6,570,000
3/26/2009 2/1/2024 2.00 -4.25% 1,025,000
1,025,000
17,3 75,000
15,330,000
-
120,546
17,375,000
15,450,546
S 80,035,000
S 65,837,152
1..1
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Annual debt service requirements to maturity for general obligation bonds are as follows:
2010
2011
2012
2013
2014
2015-2019
2020 -2024
2025 -2029
2030 -2034
Total
2010
2011
2012
2013
2014
2015 -2017
Total
2010
2011
2012
2013
2014
2015 -2019
2020 -2024
Total
Governmental Activities
G.O. Revenue Bonds
Special Assessment Bonds
Tax IncrementBonds
Principal
Interest
Principal
Interest
Principal
Interest
$ 405,000
$ 1,646,894
$ 1,850,000
$ 52,690
$ 780,000
$ 68,312
415,000
1,631,101
600,000
10,200
565,000
45,050
435,000
1,613,666
-
-
580,000
27,875
450,000
1,594,744
-
-
590,000
9,588
16,925,000
1,150,583
-
-
-
-
3,040,000
3,286,850
-
-
-
-
3,700,000
2,607,541
-
-
-
-
4,530,000
1,748,182
-
-
-
-
5,595,000
649,756
-
-
-
-
$35,495,000
$ 15,929,317
$ 2,450,000
$ 62,890
$ 2,515,000
$ 150,825
Governmental Activities
Governmental Activities
State Aid Bonds
Principal
Interest
$ 1,600,000
$ 61,039
Permanent Improvement
Certificates of
Indebtedness
Capital Improvement Bonds
Revolving
Bonds
Principal
Interest
Principal
Interest
Principal
Interest
$ 639,000
$ 35,962
$ 280,000
$ 88,417
$ 1,155,000
$ 72,686
485,000
16,941
295,000
80,143
345,000
49,530
296,000
4,368
315,000
70,993
360,000
36,398
-
-
330,000
60,905
380,000
22,428
-
-
355,000
49,596
395,000
7,604
-
-
1,200,000
67,925
-
-
$ 1,420,000
$ 57,271
$ 2,775,000
$ 417,979
$ 2,635,000
$ 188,646
Governmental Activities
State Aid Bonds
Principal
Interest
$ 1,600,000
$ 61,039
215,000
21,009
220,000
16,115
230,000
10,765
23 0, 000
4,785
60,000
840
$ 2,555,000 $ 114,553
Business -Tvne Activities
G.O. Revenue Bonds
Principal
Interest
$ 455,000
$ 658,025
475,000
640,036
6,980,000
620,675
545,000
285,166
565,000
263,806
3,190,000
963,454
3,120,000
274,856
$ 15,330,000 $ 3,706,018
It is not practical to determine the specific year for payment of long -term accrued compensated absences.
CM
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
CHANGE IN LONG -TERM LIABILITIES
Long -term liability activity for the year ended
December 31, 2009, was as follows:
Balance
Additions
Reductions
Balance
One Year
Governmental activities:
Bondspayable:
G.O. revenue bonds
$ 35,885,000
$ -
$ (390,000)
$ 35,495,000
$ 405,000
Special assessment bonds
3,015,000
-
(565,000)
2,450,000
1,850,000
Tax increment bonds
3,275,000
-
(760,000)
2,515,000
780,000
Certificates of indebtedness
1,525,000
385,000
(490,000)
1,420,000
639,000
Capital improvement bonds
3,155,000
-
(380,000)
2,775,000
280,000
Permanent improvement revolving bonds
3,755,000
-
(1,120,000)
2,635,000
1,155,000
State aidbonds
1,760,000
955,000
(160,000)
2,555,000
1,600,000
Total bonds payable
52,370,000
1,340,000
(3,865,000)
49,845,000
6,709,000
Compensated absences 504,893 343,595 (306,882) 541,606 54,161
Total governmental activities
long -term liabilities $52,874,893 $ 1,683,595 $ (4,171,882) $ 50,386,606 $ 6,763,161
Business -type activities:
Bondspayable:
G.O. revenue bonds $14,680,000 $ 1,025,000 $ (375,000) $ 15,330,000 $ 455,000
Compensated absences 107,333 58,824 (45,611) 120,546 12,054
Total business -type activities
long -term liabilities $ 14,787,333 $ 1,083,824 $ (420,611) $ 15,450,546 $ 467,054
For the governmental activities, bonds payable can be summarized in the following categories:
The G.O. revenue bonds were used to construct a 132,000 square foot community center. The bonds are payable from annual
lease payments received by the EDA from the YMCA, operating revenues from the ice arena and field house, and, if
necessary, a debt service tax levy. These bonds do constitute debt for the purpose of computing statutory debt limits.
The special assessment bonds are used to finance assessable improvements within the City, including but not limited to
sanitary sewer and water line connections, storm sewer, streets, sidewalks and curb & gutter. The bonds are payable primarily
from special assessments levied against properties benefited by the improvements. In addition, the bonds are general
obligations of the City for which its full faith, credit and taxing powers are pledged without limitation as to rate or amount.
The tax increment bonds are used to finance land acquisition and other public costs to facilitate development in the City's tax
increment districts. The bonds are payable from tax increment revenues generated by existing and new development within the
district. In addition, the bonds are general obligations of the City for which its full faith, credit and taxing powers are pledged
without limitation as to rate or amount.
The certificates of indebtedness are used to finance the purchase of capital equipment. The certificates are general obligations
of the City for which it pledges its full faith, credit and taxing powers to the payment of principal and interest on the
certificates.
The capital improvement bonds were used to purchase the 30,000 square foot public works building from the EDA and to
finance the construction of a new fire station. The bonds are general obligations of the City for which it pledges its full faith,
credit and taxing powers to the payment of principal and interest on the bonds.
The permanent improvement revolving bonds are used to finance assessable improvements within the City, including but not
limited to sanitary sewer and water line connections, storm sewer, streets, sidewalks and curb & gutter. The bonds are payable
63
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
primarily from special assessments levied against properties benefited by the improvements. In addition, the bonds are general
obligations of the City for which its full faith, credit and taxing powers are pledged without limitation as to rate or amount.
The state aid bonds were used to finance the Municipal State Aid (MSA) eligible costs of the Andover Boulevard project. The
bonds are payable entirely from state -aid received by the City from construction and maintenance of the state aid street system.
The City has pledged an amount of money from its account in the state -aid street fund sufficient to pay the principal and
interest of the bonds. In addition, the bonds are general obligations of the City for which its full faith, credit and taxing powers
are pledged without limitation as to rate or amount.
For the governmental activities, compensated absences are generally liquidated through the General Fund.
For the business -type activities, the G.O. revenue bonds were used to finance the construction of a water treatment plant. The bonds
are payable from net revenues of the water system and are general obligations of the City for which its full faith, credit and taxing
powers are pledged.
REVENUES PLEDGED
2004 EDA Public Facility Lease Revenue Bonds. The EDA has pledged future lease revenue, operating revenues (net of operating
expenses) and, if necessary, a debt service tax levy to repay the $19,580,000 bonds issued in April 2004. Proceeds from the bonds
provided financing for the construction of Andover YMCA Community Center. Lease revenues were projected to produce 100% of
the debt service requirements over the life of the bonds. Total principal and interest remaining on the bonds is $22,685,938,
payable through February 2014. For the current year, principal and interest paid and total net operating revenues, lease revenue and
tax levy were $1,334,806 and $1,459,808, respectively. A portion of the Series 2004 Bonds were refunded by the 2006 Series
Refunding Bonds of $10,000,000 and the 2007 Series Refunding Bonds of $6,865,000, both with a crossover date of February 1,
2014. At which time, future lease revenues, net operating revenues and, if necessary, debt service tax levy will be used to repay the
Series 2006 and Series 2007 Refunding Bonds through 2034.
2005A G.O. Improvement Bonds. The City has pledged future special assessment revenue to repay the $3,560,000 bonds issued in
April 2005. Proceeds from the bonds provided financing for the construction of Jay Street located in Andover Station North.
Special assessments were projected to produce 100% of the debt service requirements over the life of the bonds. Total principal and
interest remaining on the bonds is $2,512,890, payable through February 2011. For the current year, principal and interest paid and
total special assessment revenues were $658,768 and $55,945, respectively.
2003B G.O. Tax Increment Refunding Bonds. The City has pledged future tax increment revenue to repay the $1,530,000 bonds
issued in June 2003. Proceeds from the bonds refunded the Series 1996 Bonds. Incremental property taxes were projected to
produce 100% of the debt service requirements over the life of the bond issue. Total principal and interest remaining on the bonds
is $257,500, payable through August 2010. For the current year, principal and interest paid were $253,020. All tax increment
revenues are receipted in the Tax Increment Projects Capital Projects Fund and transferred over as needed to make the debt service
payments. In 2009, the debt service fund had sufficient funds to make its debt service payment.
2004B G.O. Tax Increment Refunding Bonds. The City has pledged future tax increment revenue to repay the $4,260,000 bonds
issued in March 2004. Proceeds from the bonds refunded the Series 1995D Bonds. Incremental property taxes were projected to
produce 100% of the debt service requirements over the life of the bond issue. Total principal and interest remaining on the bonds
is $2,408,325, payable through February 2013. For the current year, principal and interest paid were $594,600. All tax increment
revenues will now be receipted in the Tax Increment Projects Capital Projects Fund and transferred over as needed to make the debt
service payments. In 2009, the debt service fund had sufficient funds to make its debt service payment.
2006B G.O. Equipment Certificates. The City has pledged future property tax revenue to repay the $460,000 bonds issued in May
2006. Proceeds from the bonds were used to finance the purchase of capital equipment. Property taxes were projected to produce
100% of the debt service requirements over the life of the bonds. Total principal and interest remaining on the bonds is $162,920,
payable through February 2010. For the current year, principal and interest paid and total property tax revenues were $163,649 and
$164,083, respectively.
2007A G.O. Equipment Certificates. The City has pledged future property tax revenue to repay the $760,000 bonds issued in March
2007. Proceeds from the bonds were used to finance the purchase of capital equipment. Property taxes were projected to produce
100% of the debt service requirements over the life of the bonds. Total principal and interest remaining on the bonds is $410,900,
payable through February 2011. For the current year, principal and interest paid and total property tax revenues were $204,500 and
$212,332, respectively.
64
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
2008A G.O. Equipment Certificates. The City has pledged future property tax revenue to repay the $630,000 bonds issued in
September 2008. Proceeds from the bonds were used to finance the purchase of capital equipment. Property taxes were projected
to produce 100% of the debt service requirements over the life of the bonds. Total principal and interest remaining on the bonds is
$505,620, payable through February 2012. For the current year, principal and interest paid and total property tax revenues were
$166,240 and $172,457, respectively.
2009A G.O. Equipment Certificates. The City has pledged future property tax revenue to repay the $385,000 bonds issued in March
2009. Proceeds from the bonds were used to finance the purchase of capital equipment. Property taxes were projected to produce
100% of the debt service requirements over the life of the bonds. Total principal and interest remaining on the bonds is $397,831,
payable through February 2012. For the current year, principal and interest paid and total property tax revenues were $2,895 and
$141,156, respectively.
2004A G.O. Capital Improvement Bonds. The City has pledged future property tax revenue to repay the $3,890,000 bonds issued in
March 2004. Proceeds from the bonds were used to purchase the public works facility from the EDA and to finance the
construction of a new fire station. Property taxes were projected to produce 100% of the debt service requirements over the life of
the bonds. Total principal and interest remaining on the bonds is $3,192,979, payable through February 2017. For the current year,
principal and interest paid and total property tax revenues were $360,580 and $363,057, respectively.
2003A Permanent Improvement Revolving Bonds. The City has pledged future special assessment revenue to repay the $4,580,000
bonds issued in June 2003. Proceeds from the bonds provided financing for the construction of public improvements in the
following developments: Foxborough Crossing, Shady Oak Cove, Woodland Estates 4a' Addition, Constance Corner, Maple
Hollow, Woodland Creek Golf Course Villas and City View Farms. Special assessments were projected to produce 100% of the
debt service requirements over the life of the bonds. All revenues from the special assessments are paid into the Permanent
Improvement Revolving CPF and used to pay debt service as needed. Total principal and interest remaining on the bonds is
$830,660, payable through February 2010. For the current year, principal and interest paid and monies transferred from the
Permanent Improvement Revolving CPF were $825,463 and $830,000, respectively.
2006A Permanent Improvement Revolving Bonds. The City has pledged future special assessment revenue to repay the $2,450,000
bonds issued in May 2006. Proceeds from the bonds provided financing for the construction of public improvements in the
following developments: Andover Station North Ballfields, Cardinal Ridge, Shaw's Glen and Woodland Crossing. Special
assessments were projected to produce 100% of the debt service requirements over the life of the bonds. All revenues from the
special assessments are paid into the Permanent Improvement Revolving CPF and used to pay debt service as needed. Total
principal and interest remaining on the bonds is $1,992,985, payable through February 2014. For the current year, principal and
interest paid and monies transferred from the Permanent Improvement Revolving CPF were $399,031 and $400,000, respectively.
2001B State Aid Street Bonds. The City has pledged future municipal state aid (MSA) allotments to repay the $2,755,000 bonds
issued in June 2001. Proceeds of the bonds provided financing for the construction of the Andover Boulevard Project. The bonds
are payable solely from MSA allotments through 2010. Total principal and interest remaining on the bonds is $1,637,611, payable
through February 2010. For the current year, principal and interest paid and MSA revenues were $238,583 and $220,898,
respectively. The Series 2001B Bonds were refunded by the 2009A Series Refunding Bonds of $955,000 with a crossover date of
February 1, 2010. At which time, future MSA allotments will be used to repay the Series 2009A Refunding Bonds through 2015.
2002 G.O. Water Revenue Bonds. The City has pledged future water customer revenues, net of operating expenses, to repay the
$9,780,000 bonds issued in May 2002. Proceeds of the bonds provided financing for the construction of a water treatment plant.
The bonds are payable from water customer net revenues and are payable through 2012. The total principal and interest remaining
on the bonds is $8,761,169. The principal and interest paid for the current year and total customer net revenues were $743,424 and
$1,028,921, respectively. A portion of the Series 2002 Bonds were refunded by the 2007 Series Refunding Bonds of $6,570,000
with a crossover date of August 1, 2012. At which time, future water customer revenues, net of operating expenses, will be used to
repay the Series 2007 Refunding Bonds through 2023.
2009A G.O. Water Revenue Bonds. The City has pledged future water customer revenues, net of operating expenses, to repay the
$1,025,000 bonds issued in March 2009. Proceeds of the bonds provided financing for the addition to the water treatment plant.
The bonds are payable from water customer net revenues and are payable through 2024. The total principal and interest remaining
on the bonds is $1,323,874. The principal and interest paid for the current year and total customer net revenues were $25,404 and
$1,028,921, respectively.
M-i
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
ADVANCE CROSSOVER REFUNDING
On December 1, 2006, the City issued $10,000,000 in Public Facility Lease Revenue Refunding Bonds, Series 2006 with an
average interest rate of 4.29% to advance refund $9,755,000 of outstanding 2004 Series Bonds with an average interest rate of
5.17 %. The net proceeds of $9,782,338 were used to purchase U.S. Government Securities. Those securities were deposited in an
irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called
principal on the refunded bonds on February 1, 2014.
The City advance refunded a portion of the 2004 Public Facilities Lease Revenue Bonds to reduce its total debt service payments
over the last twenty years of the bond by $755,979 and to obtain an economic gain (difference between the present value of the debt
service payments on the old and new debt) of $375,573.
The City is responsible for the debt service of the refunded bonds and the debt service of the refunding bonds after the crossover
date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the
escrow agent total $9,760,092 at December 31, 2009.
On January 1, 2007, the City issued $6,865,000 in Public Facility Lease Revenue Refunding Bonds, Series 2007 with an average
interest rate of 4.31% to advance refund $6,700,000 of outstanding 2004 Series Bonds with an average interest rate of 5.17 %. The
net proceeds of $6,710,306 were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable
trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called principal on the
refunded bonds on February 1, 2014.
The City advance refunded a portion of the 2004 Public Facilities Lease Revenue Bonds to reduce its total debt service payments
over the last twenty years of the bond by $517,163 and to obtain an economic gain (difference between the present value of the debt
service payments on the old and new debt) of $250,417.
The City is responsible for the debt service of the refunded bonds and the debt service of the refunding bonds after the crossover
date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the
escrow agent total $6,705,279 at December 31, 2009.
P ay ment
Date
2010
2011
2012
2013
2014
2015
2016
2017
2018-2022
2023 -2027
2028-2032
2033 -2034
Refunded
Bonds Refunding Bonds
Total Series 2006 Series 2007
$ 1,335,684
1,329,891
1,332,456
1,328,534
17,3 59,3 73
$ 424,227
424,227
424,227
424,227
424,227
7 52,5 27
753,827
749,628
3,748,675
3,729,195
3,693,314
1,474,126
$ 291,983
291,983
291,983
291,983
291,983
512,483
513,283
513,683
2,568,704
2,563,655
2,5 65 ,020
1,019,212
Debt Service Commitment
Escrow Account
Series 2006 Series 2007
$ 424,227
424,227
424,227
424,227
9,967,114
$ 291,983
291,983
291,983
291,983
6,845,992
City
$ 1,335,684
1,329,891
1,332,456
1,328,534
1,262,477
1,265 ,010
1,267,110
1,263,311
6,317,379
6,292,850
6,258,334
2,493,338
$ 22,685,938 $ 17,022,427 $ 11,715,955 $ 11,664,022 $ 8,013,924 $ 31,746,374
On March 13, 2007, the City issued $6,570,000 in General Obligation Water Revenue Refunding Bonds, Series 2007B with an
average interest rate of 4.07% to advance refund $6,490,000 of outstanding 2002 Series Bonds with an average interest rate of
4.90 %. The net proceeds of $6,491,509 were used to purchase U.S. Government Securities. Those securities were deposited in an
irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called
principal on the refunded bonds on August 1, 2012.
The City advance refunded the 2002 General Obligation Water Revenue Bonds to reduce its total debt service payments over the
last ten years of the bond by $265,904 and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $164,664.
CY
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
The City is responsible for the debt service of the refunded bonds and the debt service of the refunding bonds after the crossover
date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the
escrow agent total $6,492,264 at December 31, 2009.
On March 26, 2009, the City issued $955,000 in General Obligation State Aid Streets Refunding Bonds, Series 2009A with an
average interest rate of 2.52% to advance refund $930,000 of outstanding 2001B Series Bonds with an average interest rate of
4.90 %. The net proceeds of $944,954 were used to purchase U.S. Government Securities. Those securities were deposited in an
irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called
principal on the refunded bonds on February 1, 2010.
The City advance refunded the 2001B General Obligation State Aid Street Bonds to reduce its total debt service payments over the
last eight years of the bond by $156,795 and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $71,529.
The City is responsible for the debt service of the refunded bonds and the debt service of the refunding bonds after the crossover
date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the
escrow agent total $936,829 at December 31, 2009.
Refunded
Refunding
Debt Service Commitment
Payment
Bonds
Bonds
Escrow
Date
Total
Total
Account
City
2010
$ 754,221
$ 266,146
$ 266,146
$ 754,221
2011
757,507
266,146
266,146
757,507
2012
7,249,440
266,146
6,756,146
759,440
2013
-
741,446
-
741,446
2014
-
741,646
-
741,646
2015
-
741,046
-
741,046
2016
-
744,546
-
744,546
2017
-
742,146
-
742,146
2018-2022
-
3,701,299
-
3,701,299
2023
-
740,406
-
740,406
$ 8,761,168
$ 8,950,973
$ 7,288,438
$ 10,423,703
On March 26, 2009, the City issued $955,000 in General Obligation State Aid Streets Refunding Bonds, Series 2009A with an
average interest rate of 2.52% to advance refund $930,000 of outstanding 2001B Series Bonds with an average interest rate of
4.90 %. The net proceeds of $944,954 were used to purchase U.S. Government Securities. Those securities were deposited in an
irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called
principal on the refunded bonds on February 1, 2010.
The City advance refunded the 2001B General Obligation State Aid Street Bonds to reduce its total debt service payments over the
last eight years of the bond by $156,795 and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $71,529.
The City is responsible for the debt service of the refunded bonds and the debt service of the refunding bonds after the crossover
date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the
escrow agent total $936,829 at December 31, 2009.
Note 7 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes.
The City's legal debt margin for 2009 and 2008 is computed as follows:
67
Refunded
Refunding
Debt Service Commitment
Payment
Bonds
Bonds
Escrow
Date
Total
Total
Account
City
2010
$ 968,445
$ 23,427
$ 949,848
$ 42,024
2011
-
236,009
-
236,009
2012
236,115
236,115
2013
240,765
240,765
2014
234,785
234,785
2015
-
60,840
-
60,840
$ 968,445
$ 1,031,941
$ 949,848
$ 1,050,538
Note 7 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes.
The City's legal debt margin for 2009 and 2008 is computed as follows:
67
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
December 31,
2009 MOR
Estimated taxable marketvalue
$ 2,982,595,600
Debt limit (3% of market value)
89,477,868
Amount of debtapplicable to debt limit:
Total bonded debt
$ 65,175,000
Less: Nonapplicable debt
G.O. water rev enue bonds
(15,330,000)
Special assessment bonds
(2,450,000)
Tax increment bonds
(2,515,000)
Permanent improvement revolving bonds
(2,635,000)
State aidbonds
(2,555,000)
Less: Cash and investments inrelated
debt service funds
(17, 973, 58 8)
Total debt applicable to debt limit
21,716,412
Legal debt margin
$ 67,761,456
Note 8 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
$ 2,969,639,300
89,089,179
$ 67,050,000
(14,680,000)
(3,015, 000)
(3,275,000)
(3,755,000)
(1,760,000)
(17,93 9,95 9)
22,625,04 1
$ 66,464,138
All full -time and certain part -time employees of the City are covered by defined benefit plans administered by the Public
Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERT)
and the Public Employees Police and Fire Fund (PEPFF), which are cost - sharing, multiple- employer retirement plans. These
plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social
Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers,
firefighters and peace officers who qualify for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible
members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement
benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of
credit at termination of service.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives
the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years of service and 2.7% for
each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10
years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is
3.0% for each year of service. For all PEPFF and PERF members hired prior to July 1, 1989 whose annuity is calculated using
Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members
and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social
Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also
available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that
ceases upon the death of the retiree — no survivor annuity is payable. There are also various types of joint and survivor annuity
options available which will be payable over joint lives. Members may also leave their contributions in the fund upon
termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available
at any time to members who leave public service, but before retirement benefits begin.
68
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan
participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the
provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required supplementary information for
PERF and PEPFF. That report may be obtained on the internet at www.mnpera.org, by writing to PERA, 60 Empire Drive
#200, St. Paul, Minnesota, 55103 -2088 or by calling (651) 296 -7460 or 1- 800 - 652 -9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and
amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by
state statutes. PERF Basic Plan members and Coordinated Plan members were required to contribute 9.10% and 6.00 %,
respectively, of their annual covered salary in 2009. PEPEE members are required to contribute 9.40% of their annual covered
salary in 2009. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan
PERF members, 6.75% for Coordinated Plan PERF members, and 14.1% for PEPEE members. Employee contributions for the
Coordinated Plan PERF members will increase to 7.00% effective January 1, 2010. The City's contributions to the Public
Employees Retirement Fund for the years ending December 31, 2009, 2008 and 2007 were $231,302, $225,073 and $213,396,
respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2009,
2008 and 2007 were $24,464, $21,367 and $18,600, respectively. The City's contributions were equal to the contractually
required contributions for each year as set by state statute.
C. DEFINED CONTRIBUTION LUMP SUM SERVICE PENSION PLAN — VOLUNTEER FIREFIGHTERS RELIEF
ASSOCIATION
PLAN DESCRIPTION
Members of the City's volunteer fire department are members of the Andover Firefighters' Relief Association. The
Association is the administrator of a single- employer defined contribution plan available to firefighters that was established
October 9, 1979 and operates under the provisions of Minnesota Statutes Section 424A. It is governed by a board of six
members elected by the members of the Association for three -year terms. The City's Mayor, Finance Manager and Fire Chief
are ex- officio members of the Board of Trustees.
The Association provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of
eligible members.
1. Twenty -Year Service Pension — In order to be entitled to a pension benefit, a firefighter must have completed a
minimum of five years of service with the Department and five years membership in the Association and attain the
age of 50 years. The firefighter will then be 40% vested. This percentage increases 4% per year until the twentieth
year when 100% vesting will occur. Because this is a defined contribution plan, the amount of the retirement benefit
is not predetermined, but rather is based on the individual member's allocable portion of contributions made during
the participation period.
2. Deferred Pension — If the retired or terminated member has not attained age 50 and is otherwise eligible for the
pension benefit, the balance of the member's account will be credited with earned interest at the rate permitted by
Minnesota Statutes Section 424.A02, Subd.7.
3. Disability Benefit — If a member of the Association becomes totally and permanently disabled due to injury,
disability, sickness or dismemberment as a result of performance of duty, a disability payment will be made after one
hundred days of disability.
4. Death Benefit — In the event of death of an active member or deferred pensioner, the member's individual account
balance will be paid to the surviving spouse, surviving children or the estate of the member after approval by the
Board.
M&I
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
The Association issues a publicly available financial report that includes financial statements and required supplementary
information. That report may be obtained by writing to Andover Firefighters' Relief Association, 13875 Crosstown Boulevard
NW, Andover, Minnesota 55304.
FUNDING POLICY
The State of Minnesota contributes amortization aid, or two percent fire aid, in accordance with state statute requirements.
Plan members are not required to contribute to the plan. The state legislature may amend contribution requirements of the City
and State. The City is allowed to make voluntary contributions of other public funds pursuant to Minnesota Statutes Chapter
69. The City receives the State aid contribution and is required by state statutes to pass this through as payment to the
Association. This transaction is recorded as revenue and expenditure in the City's financial statements. Contributions for the
last three years are as follows:
Year
Ending City State Total
12/31/2007 $ 50,000 $ 143,666 $ 193,666
12/31/2008 50,000 121,813 171,813
12/31/2009 50,000 103,492 153,492
Note 9 OTHER POST EMPLOYMENT BENEFITS (OPEB)
In 2008, the City prospectively implemented the requirement of a new accounting pronouncement, GASB Statement No. 45, Accounting
and Financial Reporting by Employers for Post Employment Benefits Other than Pensions.
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8, the City provides post employment health care benefits (as
defined in paragraph B) for retired employees through a single employer defined benefit plan. The term plan refers to the
City's requirement by State Statute to provide retirees with access to health insurance. The OPEB plan is administered by the
City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465.
The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended
by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not
accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The Plan does not issue a
separate report.
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City's group health insurance plan if the
individual terminates service with the City through service retirement or disability retirement. Employees who satisfy the rule
of 90 or attain age 55 and have completed 10 years of service at termination can immediately commence medical benefits.
Retirees may obtain dependent coverage while the participating retiree is under age 65. Covered spouses may continue
coverage after the retiree's death. The surviving spouse of an active employee may continue coverage in the group health
insurance plan after the employee's death.
All health care coverage is provided through the City's group health insurance plan. The retiree is required to pay 100% of
their premium cost for the City- sponsored group health insurance plan. The premium is a blended rate determined by the
entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active
employees. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer and the City's plan becomes
secondary.
C. PARTICIPANTS
As of the actuarial valuation dated January 2008, participants consisted of:
rit
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Retirees and beneficiaries currently
purchasing health insurance through the City 3
Active employees 52
Total 55
Participating employers 1
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay -as- you -go basis. The City
Council may change the funding policy at any time.
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City's annual other post employment benefit (OPEB) cost is calculated based on the annual requirement contribution
(ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortized
any unfunded actuarial liabilities (or funding excess) over period not to exceed 30 years. The net OPEB obligation as of
December 31, 2009, was calculated as follows:
Annual required contribution (ARC)
$ 53,096
Amortization of net OPEB obligation
(2,455)
Interest on net OPEB obligation
1,699
Annual OPEB cost
52,340
Contributions made during the year
(14,615)
Increase (decrease) in net OPEB obligation 37,725
Net OPEB obligation - beginning of year 42,466
Net OPEB obligation - end of year $ 80,191
The City first had an actuarial valuation performed for the plan as of January 1, 2008 to determine the funded status of the plan
as of that date as well as the employer's annual required contribution (ARC) for the fiscal year ended December 31, 2008. The
City's annual OPEB cost (expense) of $53,096 was equal to the ARC for the fiscal year, as the transition liability was set at
zero as of December 31, 2007. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and
the net OPEB obligation for 2008 and 2009 are as follows:
Annual Employer
Fiscal Year Ended OPEB Cost Contributions
Percentage of
Annual OPEB Net OPEB
Cost Contributed Obligation
December 31, 2008 $ 53,096 $ 10,630 20.0% $ 42,466
December 31, 2009 52,340 14,615 27.9% 80,191
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health benefits; therefore, the
actuarial value of assets is zero. The funded status of the plan was as follows:
r`i
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
January 1, 2008
$ 324,387 $ 324,387 0.00% $ 5,400,000 6.01%
*using the Projected Unit Credit actuarial method
Note, the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior to this date.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events for into the future. Examples include assumptions about future employment, mortality and
the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions
(ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented as required supplementary information
following the notes of the financial statements, presents multi -year trend information that shows whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern
of sharing of benefit cost between the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effect of short -term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long -term perspective of the calculations.
In the January 1, 2008 actuarial valuation, the Projected Unit Credit Actuarial cost method was used. The actuarial
assumptions included a 4.0% investment rate of return (net of administrative expenses) and an initial annual health care cost
trend of 10.0% reduced by 0.5% each year to arrive at an ultimate health care cost trend of 5.0 %. The actuarial value of assets
was $0. The plan's unfunded actuarial accrued liability is being amortized as a level dollar amount over 30 years on a closed
basis. The remaining amortization period at December 31, 2009 was 28 years.
Note 10 INTERFUND RECEIVABLES /PAYABLES, LOANS AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31, 2009 are as follows:
Fund
Governmental Funds:
Major Funds:
General Fund
2006 EDA Public Facility Lease Revenue Refunding Bonds DSF
2007 EDA Public Facility Lease Revenue Refunding Bonds DSF
Water Trunk CPF
Sewer Trunk CPF
Nonmajor Governmental Funds
Total governmental funds
Receivable
Payable
Unfunded
$ 670,000
$ -
-
Actuarial
UAAL as a
Actuarial
Actuarial
Accrued
Percentage of
Actuarial Value of
Accrued
Liability Fund
Covered Covered
Valuation Date Assets
Liability *
(UAAL) Ratio
Payroll Payroll
(a)
(b)
(b -a) (a/b)
(c) ((b -a) /c)
January 1, 2008
$ 324,387 $ 324,387 0.00% $ 5,400,000 6.01%
*using the Projected Unit Credit actuarial method
Note, the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior to this date.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events for into the future. Examples include assumptions about future employment, mortality and
the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions
(ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented as required supplementary information
following the notes of the financial statements, presents multi -year trend information that shows whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern
of sharing of benefit cost between the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effect of short -term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long -term perspective of the calculations.
In the January 1, 2008 actuarial valuation, the Projected Unit Credit Actuarial cost method was used. The actuarial
assumptions included a 4.0% investment rate of return (net of administrative expenses) and an initial annual health care cost
trend of 10.0% reduced by 0.5% each year to arrive at an ultimate health care cost trend of 5.0 %. The actuarial value of assets
was $0. The plan's unfunded actuarial accrued liability is being amortized as a level dollar amount over 30 years on a closed
basis. The remaining amortization period at December 31, 2009 was 28 years.
Note 10 INTERFUND RECEIVABLES /PAYABLES, LOANS AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31, 2009 are as follows:
Fund
Governmental Funds:
Major Funds:
General Fund
2006 EDA Public Facility Lease Revenue Refunding Bonds DSF
2007 EDA Public Facility Lease Revenue Refunding Bonds DSF
Water Trunk CPF
Sewer Trunk CPF
Nonmajor Governmental Funds
Total governmental funds
Receivable
Payable
$ 670,000
$ -
-
5,000
-
5,000
61,000
-
615,000
-
1,336,000
$ 1,346,000
$ 1,346,000
Interfund receivables and payables are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the
fiscal year.
r`
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Interfund transfers:
Fund
Transfer In
Transfer Out
Governmental Funds:
Authorizing Law.
M.S. Section 472
Major Funds:
1986
Duration of District:
General Fund
$ 196,930
$
Water Trunk CPF
-
165,643
Sewer Trunk CPF
350,000
-
Road & Bri dge CPF
9,400
-
Tax Increment Projects CPF
-
820,000
Permanent Improvement Revolving CPF
-
1,230,000
No nmaj or Funds
2,75 0,141
699,541
Total governmental funds
3,306,471
2,915,184
Proprietary Funds:
Enterprise Funds:
Water 165,643 150,250
Sewer - 396,680
Storm Sewer - 10,000
Total proprietary funds 165,643 556,930
Total $ 3,472,114 $ 3,472,114
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund.
Most of the City's interfund transfers fall under that category. Non - routine transfers include a one -time transfer of $326,276 to the Open
Space Referendum Bonds CPF from the Open Space Referendum Bonds DST for the acquisition of land to be set aside as open space.
Additionally, computer service fees paid by the Water, Sewer and Storm Sewer Enterprise Funds to the General Fund have been
reclassified as transfers on the Government -Wide Statement of Activities as follows:
Transfer In Transfer Out
Governmental Activities $ 30,600 $
Business -Type Activities - 30,600
Total $ 30,600 $ 30,600
Note 11 TAX INCREMENT DISTRICTS
The City is the administering authority for the following tax increment finance districts
1. Name of District:
Andover Redevelopment District 1 -1
Type of District:
Redevelopment
Authorizing Law.
M.S. Section 472
Established:
1986
Duration of District:
Through 2012
Original net tax capacity:
$ 139,601
Current net tax capacity:
2,044,050
Captured nettax capacity
- retained bythe City $ 1,904,449
Total District Bonds issued $ 19,250,000
Amount redeemed (16,735,000)
Bonds outstanding December 31, 2009 $ 2,515,000
73
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Name of District:
Type of District:
Authorizing Law:
Established:
Duration of District:
Original net tax capacity:
Current net tax capacity:
Andover Redevelopment District 1 -2
Redevelopment
M.S. Section 472
1986
Through 2014
$ 4,542
25 8, 368
Captured net tax capacity -
retained by the City $
253,826
3. Name ofDistrict:
Tax Increment Financing District 1 -3
(Farmstead Project)
Type of District:
Redevelopment
Authorizing Law:
M.S. Section 469
Established:
1997
Duration of District:
Through 2024
Original net tax capacity:
$
7,314
Current net tax capacity:
163,219
Captured net tax capacity
- retained by the City $
155,905
4. Name ofDistrict:
Tax Increment Financing District 1 -4
Type of District:
Redevelopment
Authorizing Law:
M.S. Section 469
Established:
2005
Duration of District:
Through 2031
Original net tax capacity:
$
67,162
Current net tax capacity:
96,315
Captured net tax capacity
- retained by the City S
29,153
Note 12 DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2009 as follows:
Fund
Amount
Special Revenue Funds:
Community Center
$ 419,239
Capital P rcj ects Funds:
Storm Sewer Project
59,977
Open Space Referrendum Bonds 609,546
Note 13 CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions;
injuries to employees; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMCIT),
a public entity risk pool for its general property and casualty, workers' compensation, and other miscellaneous insurance
coverages.
Workers compensation coverage is provided through a pooled self- insurance program through the LMCIT. The City pays an
annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT
reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation,
the City enrolls with a state - certified managed care organization to receive a 2% premium credit towards the cost of coverage.
The City also has a $2,500 deductible per occurrence to further decrease the cost of coverage. Final premiums are determined
74
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
after an audit of payroll subsequent to the close of the agreement year and are subject to revisions in rates, payrolls and
experience modification. The amount of premium adjustment, if any, is considered immaterial and not recorded until received
or paid.
Property, casualty, and automobile insurance coverage are provided through a pooled self- insurance program through the
LMCIT. The City pays an annual premium to the LMCIT. The LMCIT reinsures through commercial companies for claims in
excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to
the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including employee health and disability
insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any
of the past three fiscal years.
B. LITIGATION
The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant
are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by
plaintiffs.
C. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of
funds received under these programs generally requires compliance with the terms and conditions specified in the grant
agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a
liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the
City at December 31, 2009.
D. TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any
disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that
they are not aware of any instances of noncompliance that would have a material effect on the financial statements.
E. PAY -AS- YOU -GO TAX INCREMENT
The City has one tax increment pay -as- you -go agreement. The agreement is not a general obligation of the City and is payable
solely from tax increments. Accordingly, this agreement is not reflected in the financial statements of the City. Details of the
pay -as- you -go are as follows:
TIF District #1 -3, Farmstead Project: The pay -as- you -go agreement for TIF District #1 -3 provides for the payment of 90% of
all tax increment received and will be completed February 1, 2015.
Note 14 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the
City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a
bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in
the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies
are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any
additional taxes found necessary for full payment of principal and interest.
Mi.
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2009. Future
scheduled tax levies for all bonds outstanding at December 31, 2009 totaled $22,937,428.
Note 15 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
Fund equities are classified as follows to reflect limitations and restrictions of the respective funds:
IWO Innk
Governmental Funds:
Major Funds:
General Fund
Reserved for prepaid items
Reserved for inventory
Designated for snow emergency
Designated for public safety
Designated for facility management
Designated for information technology
Designated for working cash flow
2006 EDA Public Facility Lease Revenue Refunding Bonds DSF
Reserved for debt service
2007 EDA Public Facility Lease Revenue Refunding BondsDSF
Reserved for debt service
Water Trunk CPF
Designated for projects
Sewer Trunk CPF
Designated for projects
Road & Bridge CPF
Designated for projects
Tax Increment Projects CPF
Reserved for notes receivable
Designated for projects
Permanent Improvement Revolving CPF
Designated for projects
Nonmajor Funds
Reserved for prepaid items
Reserved for inventory
Reserved for economic development
Reserved for debt service
Reserved for projects
Designated for working cash flow
Designated for projects
Designated for equipment
Total Governmental Funds
rc
$ 103,804
103,711
65,000
65,000
65,000
65,000
3,860,897
9,932,006
6,822,086
2,673,600
3,134,884
3,195,162
4,403,558
1,343,245
8,250
5,618
9,828
3,5 51,3 90
427,017
507,253
538,840
734,872
$ 41,616,021
$ 108,415
85,390
70,000
70,000
70,000
70,000
3,701,230
9,935,142
6,825,235
2,95 3 ,849
2,733,130
2,497,381
119,000
3,515,261
1,627,996
6,500
8,446
2,260
3,372,226
485,494
466,978
600,422
629,129
$ 39,953,484
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 16 CONDUIT DEBT OBLIGATION
Conduit debt obligations are certain limited - obligation revenue bonds or similar debt instruments issued for the express purpose of
providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private- sector
entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for
such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial
statements of the City.
As of December 31, 2009, the following revenue bonds were outstanding
Note 17 OPERATING LEASES
The City received revenue from two agreements for the lease of space for antennas placed on the water tower. The City also has a lease
with the Greater Minneapolis YMCA for building space at the Andover YMCA Community Center. Terms of each lease are as follows:
Date of
Original
Outstanding
Project
Issue
Issue
Retired
12/31/2009
Expiration
Downtown Center
7/15/1997
$ 5,645,000
$ (4,400,000)
$ 1,245,000
Downtown Center
7/15/1997
1,250,000
(1,250,000)
-
Presbyterian Homes of Andover, Inc.
12/1/1998
720,000
(720,000)
-
Presbyterian Homes of Andover, Inc.
11/1/2003
13,145,000
(1,403,827)
11,741,173
Total
3,000
$ 20,760,000
$ (7,773,827)
$ 12,986,173
Note 17 OPERATING LEASES
The City received revenue from two agreements for the lease of space for antennas placed on the water tower. The City also has a lease
with the Greater Minneapolis YMCA for building space at the Andover YMCA Community Center. Terms of each lease are as follows:
Future minimum lease payments are unavailable at this time due to changing variables: CPI and the completion of the capital campaign
for the community center.
Note 18 SUBSEQUENT EVENTS
The City sold $1,660,000 of General Obligation Open Space Referendum Bonds, Series 2010A on February 18, 2010 to finance land
acquisitions within the City. The rates of the bonds per year ranged from 2.00% - 3.15% with a true interest cost of 2.64 %. Principal
payments are due in 2012 — 2022.
The City sold $1,480,000 of General Obligation Permanent Improvement Revolving (PIR) Refunding Bonds, Series 2010A on February
18, 2010 to refund the General Obligation PIR Bonds, Series 2006A. The rates of the bonds per year are 2.00% with a true interest cost
of 1.24 %. Principal payments are due in 2011 — 2014.
Note 19 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for
these financial statements:
Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this Statement are effective for
financial statements for periods beginning after June 15, 2009.
77
2009
Lease
Annual Lease
Expiration
Renewal
Location
Lessee
Amount
Adjustment Factor
Date
Options
City Hall water tower
Sprint Nextel
$ 24,499
Greater of CPI or 4%
12/31/2012
3- 5 year tuns
City Hall water tower
T- Mobile USA, Inc
19,981
Greater of CPI or 4%
12/31/2011
3 - 5 year tuns
Emergency Siren Pole
T- Mobile USA, Inc
3,000
$1,000 annual increase
6/17/2013
3- 5 year terms
Andover YMCA Comm Ctr
Greater Minneapolis YMCA
635,000
None
8/1/2035
N/A
Future minimum lease payments are unavailable at this time due to changing variables: CPI and the completion of the capital campaign
for the community center.
Note 18 SUBSEQUENT EVENTS
The City sold $1,660,000 of General Obligation Open Space Referendum Bonds, Series 2010A on February 18, 2010 to finance land
acquisitions within the City. The rates of the bonds per year ranged from 2.00% - 3.15% with a true interest cost of 2.64 %. Principal
payments are due in 2012 — 2022.
The City sold $1,480,000 of General Obligation Permanent Improvement Revolving (PIR) Refunding Bonds, Series 2010A on February
18, 2010 to refund the General Obligation PIR Bonds, Series 2006A. The rates of the bonds per year are 2.00% with a true interest cost
of 1.24 %. Principal payments are due in 2011 — 2014.
Note 19 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for
these financial statements:
Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this Statement are effective for
financial statements for periods beginning after June 15, 2009.
77
CITY OF ANDOVER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Statement No. 53 Accounting and Financial Reporting for Derivative Instruments. The provisions of this Statement are effective
for financial statements for periods beginning after June 15, 2009.
Statement No. 54 Fund Balance and Government Fund Type Definitions. The provisions of this Statement are effective for
financial statements for periods beginning after June 15, 2010.
The effect these standards may have on future financial statements is not determinable at this time.
78
REQUIRED SUPPLEMENTARY INFORMATION
r*;
CITY OF ANDOVER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
2,545,642
2,545,642
2,545,642
Statement 10
BUDGETARY COMPARISON SCHEDULE
- GENERAL FUND
1,105,102
1,105,102
998,351
106,751
For The Year Ended December 31, 2009
Protective inspection
452,938
452,938
435,102
17,836
With Comparative Actual Amounts For The Year Ended December 31, 2008
Civil defense
16,909
16,909
14,935
1,974
13,305
Animal control
Variance with
10,750
11,376
(626)
7,095
Total public safety
Final Budget -
4,131,341
4,005,406
Budgeted Amounts
3,785,803
Public works:
Positive
2008
Original
Final
Actual
(Negative)
Actual
Revenues:
56,288
613,896
Snow and ice removal
526,036
516,036
General property taxes
$ 6,878,536 $
6,651,795
$ 6,588,601
$ (63,194)
$ 6,249,011
Licenses and permits
442,580
442,580
291,903
(150,677)
525,339
Intergovernmental
601,948
828,689
595,002
(233,687)
709,251
Charges for services
620,022
620,022
701,289
81,267
772,430
Fines
95,375
95,375
110,779
15,404
104,930
Investment income
115,000
115,000
76,772
(38,228)
137,966
Miscellaneous
83,550
83,550
130,523
46,973
116,950
Total revenues
8,837,011
8,837,011
8,494,869
(342,142)
8,615,877
Expenditures:
Current:
General government:
Mayor and City council
108,375
108,375
105,319
3,056
103,067
Administration
152,701
152,701
128,532
24,169
127,771
Newsletter
25,000
25,000
22,405
2,595
19,667
Human resources
62,773
62,773
54,625
8,148
59,006
Legal
178,500
178,500
172,900
5,600
171,300
City clerk
101,121
101,121
96,621
4,500
158,203
Elections
6,372
6,372
6,139
233
40,907
Financial administration
221,760
221,760
210,204
11,556
212,761
Assessing
152,500
152,500
120,113
32,387
119,090
Information systems
150,417
140,417
122,614
17,803
137,286
Planning and zoning
362,970
360,470
323,681
36,789
359,140
Engineering
436,405
435,405
388,285
47,120
399,436
Facility management
509,328
484,328
409,929
74,399
408,238
Total general government
2,468,222
2,429,722
2,161,367
268,355
2,315,872
Public safety
Police
2,545,642
2,545,642
2,545,642
-
2,318,241
Fire protection
1,105,102
1,105,102
998,351
106,751
991,636
Protective inspection
452,938
452,938
435,102
17,836
455,526
Civil defense
16,909
16,909
14,935
1,974
13,305
Animal control
10,750
10,750
11,376
(626)
7,095
Total public safety
4,131,341
4,131,341
4,005,406
125,935
3,785,803
Public works:
Streets and highways
628,378
623,378
567,090
56,288
613,896
Snow and ice removal
526,036
516,036
462,849
53,187
457,587
Street signs
185,913
169,913
159,213
10,700
170,358
Traffic signals
34,000
34,000
26,090
7,910
15,057
Street lighting
193,400
193,400
213,307
(19,907)
188,213
Total public works
$ 1,567,727
$ 1,536,727
$ 1,428,549
$ 108,178
$ 1,445,111
(Continued)
80
CITY OF ANDOVER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
Statement 10
BUDGETARY COMPARISON SCHEDULE -
GENERAL FUND
(Continued)
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Variance with
Final Budget -
Budgeted Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
Expenditures:
Current: (continued)
Parks and recreation $
897,749 $
887,749
$ 835,636
$ 52,113
$ 867,652
Recycling
98,607
98,607
85,527
13,080
86,631
Unallocated
20,000
20,000
19,540
460
17,999
Total current
9,183,646
9,104,146
8,536,025
568,121
8,519,068
Capital outlay:
General government
-
-
-
-
3,428
Parks and recreation
2,397
(2,397)
-
Total capital outlay
-
-
2,397
(2,397)
3,428
Total expenditures
9,183,646
9,104,146
8,538,422
565,724
8,522,496
Revenues over (under) expenditures
(346,635)
(267,135)
(43,553)
223,582
93,381
Other financing sources (uses):
Transfers in
196,930
196,930
196,930
-
191,194
Net increase (decrease) in fund balance $
(149,705) $
(70,205)
$ 153,377
$ 223,582
$ 284,575
Fund balance - January 1
4,175,035
3,890,460
Fund balance - December 31
$ 4,328,412
$ 4,175,035
81
CITY OF ANDOVER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS -
OTHER POST EMPLOYMENT BENEFITS PLAN
For The Year Ended December 31, 2009
Actuarial
Actuarial Value of
Valuation Date Assets
(a)
Statement 11
UAAL as a
Percentage of
Fund Covered Covered
Ratio Payroll Payroll
(a/b) (c) ((b -a) /c)
January 1, 2008 $ - $ 324,387 $ 324,387 0.00% $ 5,400,000 6.01%
The City implemented GASB Statement No. 45 for the year ended December 31, 2008. Information for prior years is not available.
82
Unfunded
Actuarial
Actuarial
Accrued
Accrued
Liability
Liability
(UAAL )
(b)
(b -a)
Statement 11
UAAL as a
Percentage of
Fund Covered Covered
Ratio Payroll Payroll
(a/b) (c) ((b -a) /c)
January 1, 2008 $ - $ 324,387 $ 324,387 0.00% $ 5,400,000 6.01%
The City implemented GASB Statement No. 45 for the year ended December 31, 2008. Information for prior years is not available.
82
CITY OF ANDOVER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2009
Note A BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of
America. The legal level of budgetary control is at the departmental level for the General Fund. The following is a listing of General
Fund departments whose expenditures exceed budget appropriations.
F inal Over
Budget Actual Budget
General Fund
Currant:
Public safety:
Animal control $ 10,750 $ 11,376 $ 626
Public works:
Street lighting 193,400 213,307 19,907
Capital outlay:
Parks and recreation - 2,397 2,397
Note B MODIFIED APPROACH FOR CITY STREETS AND TRAILS INFRASTRUCTURE CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines
infrastructure as the basic physical assets including the street and trail system; water treatment and distribution system; wastewater
collection system; park and recreation lands and improvement system; storm water conveyance system; and building combined with site
amenities such as parking and landscape areas used by the City in the conduct of its business. Each major infrastructure can be divided
into subsystems. For example, the street and trail system can be divided into pavement widths, curb type and sidewalk. City owned
streets could further be classified as collector or local. Subsystem detail is not presented in these basic financial statements; however, the
City maintains detailed information on these subsystems.
The City has elected to use the modified approach as defined in GASB Statement No. 34 for infrastructure reporting for its Pavement
Management Program. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the
following requirements:
1) The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up
to -date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate
annual amount to maintain and preserve at the established condition assessment level.
2) The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established
and disclosed condition assessment level.
In the fall of 2009, the City conducted a physical condition assessment of the streets and trails constructed since 1974. This assessment
will be performed every three years. Each street and trail segment was assigned a physical condition based on potential defects. An
Overall Condition Index (OCI) was assigned to each street and trail and expressed in a continuous scale from 0 to 100, where 0 is
assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street or trail. The following
conditions were defined:
Condition Rating
Excellent
86-
100
Very Good
71-85
Good
56-70
Fair
41
-55
Poor
26-40
Very Poor
11-25
Substandard
0-
10
83
CITY OF ANDOVER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2009
As of December 31, 2009, the City's street and trail system was rated at an OCI index of 81 on the average with detail condition as
follows:
% of Street
Condition and Trails
Excellent to Good 92.9%
Fair 5.4%
Poor to Substandard 1.7%
The City's streets and trails are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun's
ultra - violet rays drying out and breaking down the top layer of pavement; (3) utility company /private development trenching operations;
(4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the
system through short -term maintenance activities such as pothole patching, crack sealing, seal coating and overlaying. The City
expended $1,666,216 on street and trail maintenance for the year ending December 31, 2009. These expenditures delayed deterioration;
however, the overall condition of the system was not improved through these maintenance expenditures. The City has estimated that the
amount of annual expenditures required to maintain the City's street and trail system at the average OCI rating of good is approximately
$1,150,000.
The City has an on -going street and trail rehabilitation program funded in the Capital Improvement Program that is intended to improve
the condition rating of the City streets and trails. The rehabilitation program is formulated based on the deficiencies identified as a part
of its Pavement Management Program.
84
Maintenance
Actual
OCI
Year
Estimate
Expenditures
Rating
2003
$ 950,000
$ 956,688
82
2004
1,000,000
1,847,066
82
2005
1,000,000
1,655,715
83
2006
1,150,000
1,228,981
82
2007
1,150,000
1,256,433
81
2008
1,150,000
2,244,713
80
2009
1,150,000
1,666,216
81
The City has an on -going street and trail rehabilitation program funded in the Capital Improvement Program that is intended to improve
the condition rating of the City streets and trails. The rehabilitation program is formulated based on the deficiencies identified as a part
of its Pavement Management Program.
84
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
85
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally restricted to
expenditures for specified purposes. Revenues 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.
DEBT SERVICE FUNDS
A Debt Service Fund accounts for the accumulation of resources for, and the payment of general long -term
principal, interest and other related costs.
CAPITAL PROJECTS FUNDS
A Capital Projects Fund is 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.
E:I
CITY OF ANDOVER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2009
With Comparative Totals For December 31, 2008
550,000
110,000
676,000
1,336,000
Statement 12
Accounts payable
70,235
-
2,040
72,275
Totals
Contracts payable
Special
Debt
Capital
Nonmajor Governmental Funds
-
Revenue
Service
Projects
2009
2008
Assets:
Due to other governmental units
3,358
3,358
Cash and investments
$ 1,806,828
$ 1,985,909
$ 497,300
$ 4,290,037
$ 4,978,035
Cash and investments with escrow agent
25,316
1,646,888
-
1,672,204
726,874
Accrued interest
6,479
7,261
1,770
15,510
51,142
Due from other governmental units
-
-
-
-
39,562
Accounts receivable - net
160,788
49,012
3,551,390
160,788
139,683
Interfund receivable
-
-
10,000
Prepaid items
8,250
-
-
8,250
6,500
Property taxes receivable:
Undesignated
(458,423)
-
(669,523)
(1,127,946)
Unremitted
2,056
21,332
488
23,876
19,263
Delinquent
6,740
58,983
1,581
67,304
66,056
Special assessments receivable:
Delinquent
-
32,988
-
32,988
10,392
Deferred
-
393,935
393,935
448,508
Notes receivable
64,012
-
64,012
69,852
Inventories - at cost
5,618
-
-
5,618
8,446
Total assets
2,086,087
4,147,296
501,139
6,734,522
6,574,313
Liabilities and Fund Balance
Liabilities:
Interfund payable
550,000
110,000
676,000
1,336,000
840,000
Accounts payable
70,235
-
2,040
72,275
84,985
Contracts payable
3,428
-
3,428
-
Deposits payable
28,327
28,327
33,970
Due to other governmental units
3,358
3,358
3,332
Salaries payable
18,546
-
-
18,546
15,349
Deferred revenue
129,979
485,906
1,581
617,466
691,980
Total liabilities
803,873
595,906
679,621
2,079,400
1,669,616
Fund balance (deficit):
Reserved
49,012
3,551,390
401,701
4,002,103
3,874,926
Unreserved:
Designated
1,691,625
-
89,340
1,780,965
1,696,529
Undesignated
(458,423)
-
(669,523)
(1,127,946)
(666,758)
Total fund balance
1,282,214
3,551,390
(178,482)
4,655,122
4,904,697
Total liabilities and fund balance
$ 2,086,087
$ 4,147,296
$ 501,139
$ 6,734,522
$ 6,574,313
87
CITY OF ANDOVER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 13
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2009
With Comparative Totals For The Year Ended December 31, 2008
Expenditures:
2,413,892
336,249
Totals
1,475,826
Current:
Special
Debt
Capital
Nonmajor Governmental Funds
(300,826)
Revenue
Service
Projects
2009
2008
Revenues:
Public safety
-
955,000
10,004
10,004
General property taxes
$ 232,053
$ 2,156,485
$ 55,742
$ 2,444,280 $
2,356,535
Intergovernmental
3,194
239,185
9,766
252,145
310,075
Special assessments
-
59,507
-
59,507
80,655
Charges for services
878,370
-
-
878,370
951,622
Investment income
25,676
38,989
7,429
72,094
49,848
Miscellaneous:
Public safety
$ 1,282,214
$ 3,551,390
299,319
299,319
Park dedication fees
-
-
41,216
41,216
133,585
Other
853,108
-
28,595
881,703
681,568
Total revenues
1,992,401
2,494,166
142,748
4,629,315
4,563,888
Expenditures:
2,413,892
336,249
2,750,141
1,475,826
Current:
(363,292)
(336,249)
-
(699,541)
(300,826)
General government
59,112
-
22,183
81,295
50,702
Public safety
-
955,000
10,004
10,004
11,162
Public works
187,811
14,642
1,093
188,904
822,370
Parks and recreation
924,104
-
131,385
1,055,489
1,086,170
Economic development
122,361
3,047,285
-
122,361
129,372
Capital outlay:
323,749
179,164
(752,488)
(249,575)
(1,894,271)
General government
-
3,372,226
35,640
35,640
368,094
Public safety
$ 1,282,214
$ 3,551,390
299,319
299,319
-
Public works
-
138,766
138,766
441,104
Parks and recreation
24,236
-
982,234
1,006,470
351,625
Debt service:
Principal retirement
-
3,865,000
-
3,865,000
3,460,000
Interest
1,462,022
1,462,022
1,537,013
Paying agent fees
5,794
5,794
7,421
Professional service
-
29,471
-
29,471
4,000
Total expenditures
1,317,624
5,362,287
1,620,624
8,300,535
8,269,033
Revenues over (under) expenditures
674,777
(2,868,121)
(1,477,876)
(3,671,220)
(3,705,145)
Other financing sources (uses)
Transfers in
2,413,892
336,249
2,750,141
1,475,826
Transfers out
(363,292)
(336,249)
-
(699,541)
(300,826)
Bonds issued
-
385,000
385,000
630,000
Refunding bonds issued
955,000
-
955,000
-
Bond premium
-
14,642
4,139
18,781
-
Proceeds from sale of capital assets
12,264
-
-
12,264
5,874
Total other financing sources (uses)
(351,028)
3,047,285
725,388
3,421,645
1,810,874
Net increase (decrease) in fund balance
323,749
179,164
(752,488)
(249,575)
(1,894,271)
Fund balance - January 1
958,465
3,372,226
574,006
4,904,697
6,798,968
Fund balance - December 31
$ 1,282,214
$ 3,551,390
$ (178,482)
$ 4,655,122
$ 4,904,697
88
NONMAJOR SPECIAL REVENUE FUNDS
The City of Andover had the following Special Revenue Funds during the year:
EDA General - This fund was established to account for activities designed to promote quality economic
development within the community.
Community Development Block Grant - This fund accounts for the financial operations of a federal grant for rental
housing rehabilitation.
Community Center - This fund is used to account for the operations of the Andover YMCA / Community Center,
particularly the ice arena, field house and concessions. The aquatic's portion of the Community Center is under the
operations of the YMCA.
Drainage and Mapping - This fund accounts for resources necessary to maintain existing maps and developing new
maps and mapping systems for the City.
LRRWMO - This fund is used to account for the City's involvement with the Lower Rum River Watershed
Management Organization ( LRRWMO).
Forestry - This fund was established to account for the protection of forest resources and the development of control
plans to ensure preservation or restoration of these resources.
Trail and Transportation - This fund is used to account for contributions associated with land development to be
used for constructing and upgrading the City's trail system.
Right -of -Way Management/Utility - This fund is used to account for activity associated with the management of the
public right -of -ways.
Capital Equipment Reserve - This fund is used to account for the capital equipment/projects levy and the various
capital expenditures it will be used for.
Charitable Gambling - This fund accounts for the 10% of net profits received from gambling activities by local non-
profit organizations. According to state statute, all expenditures from this fund must be for public services and
police, fire and other emergency or public safety - related services, equipment, and training, excluding pension
obligations.
Construction Seal Coating - This fund accounts for the contributions associated with land development to be used
for the respective developments first application of crack seal and seal coat.
89
CITY OF ANDOVER, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2009
With Comparative Totals For December 31, 2008
O
Community
Drainage
EDA
Development
Community
and
General
Block Grant
Center
Mapping
LRRWMO
Assets:
Cash and investments
$ 390,027
$ 9,828
$ 30,564
$ 88,096 $
19,607
Cash and investments with escrow agent
-
-
25,316
-
-
Accrued interest
1,533
-
307
Due from other governmental units
-
-
-
Accounts receivable
13,563
147,225
Prepaid items
-
8,250
-
Property taxes receivable:
Unremitted
-
320
Delinquent
-
1,107
Notes receivable
64,012
-
-
Inventories - at cost
-
-
5,618
-
-
Total assets
405,123
73,840
216,973
88,403
21,034
Liabilities and Fund Balance
Liabilities:
Interfund payable
-
-
550,000
-
-
Accounts payable
1,281
41,174
-
-
Contracts payable
-
-
857
857
Deposits payable
28,327
-
-
Due to other governmental units
-
3,358
-
Salaries payable
3,012
-
13,353
758
Deferred revenue
-
64,012
-
-
1,107
Total liabilities
4,293
64,012
636,212
857
2,722
Fund balance (deficit):
Reserved for:
Prepaid items
-
-
8,250
-
-
Inventory
-
5,618
Economic development
9,828
-
Projects
-
-
25,316
-
-
Unreserved:
Designated for working capital
400,830
-
13,500
18,312
Designated for projects
-
74,046
-
Designated for equipment
-
Undesignated
-
-
(458,423)
-
-
Total fund balance (deficit)
400,830
9,828
(419,239)
87,546
18,312
Total liabilities and fund balance
$ 405,123
$ 73,840
$ 216,973
$ 88,403 $
21,034
O
Right -of -Way Capital
Trail and Management/ Equipment
Forestry Transportation Utility Reserve
Statement 14
Totals
Charitable Construction Nonmajor Special Revenue Funds
Gambling Seal Coating 2009 2008
$ 5,830 $ 65,928 $ 91,060 $ 1,032,281 $ 5,601 $ 68,006 $ 1,806,828 $ 1,645,670
- - - - - - 25,316 -
248 354 3,635 402 6,479 12,547
- - - - - 39,562
160,788 139,683
8,250 6,500
1,736 2,056 1,748
5,633 6,740 6,654
- 64,012 69,852
5,618 8,446
5,830 66,176 91,414 1,043,285 5,601 68,408 2,086,087 1,930,662
011
-
550,000
700,000
-
27,780
70,235
45,868
1,714
-
3,428
-
-
28,327
33,970
-
3,358
3,332
1,423
-
-
18,546
15,349
-
5,633
59,227
129,979
173,678
3,137
33,413
59,227
803,873
972,197
-
-
-
8,250
6,500
5,618
8,446
9,828
2,260
- -
-
25,316
-
5,830 - 63,180
-
5,601 -
507,253
466,978
- 66,176 25,097
275,000
- 9,181
449,500
444,613
- -
734,872
-
734,872
629,129
- - -
-
- -
(458,423)
(599,461)
5,830 66,176 88,277
1,009,872
5,601 9,181
1,282,214
958,465
$ 5,830 $ 66,176 $ 91,414
$ 1,043,285 $
5,601 $ 68,408
$ 2,086,087
$ 1,930,662
011
CITY OF ANDOVER, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2009
With Comparative Totals For The Year Ended December 31, 2008
Revenues:
General property taxes
Intergovernmental
Charges for services
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public works
Parks and recreation
Economic development
Capital outlay:
Public works
Parks and recreation
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers out
Proceeds from sale of capital assets
Total financing sources (uses)
Net increase (decrease) in fund balance
Fund balance (deficit) - January 1
Fund balance (deficit) - December 31
ON
Community
Drainage
EDA
Development
Community
and
General
Block Grant
Center
Mapping
LRRWMO
$
$
$
$ $
33,421
170
181,416
610,099
12,226
-
9,486
243
(11,595)
2,102
395
2,487
7,475
824,110
-
-
193,389
7,718
1,422,614
14,328
33,986
-
5,827
33,627
-
-
903,446
-
-
122,211
150
-
903,446
33,627
122,211
150
5,827
71,178
7,568
519,168
8,501
359
-
-
(353,892)
-
-
-
-
(353,892)
-
-
71,178
7,568
165,276
8,501
359
329,652
2,260
(584,515)
79,045
17,953
$ 400,830
$ 9,828
$ (419,239)
$ 87,546 $
18,312
ON
Statement 15
ON
Right -of -Way
Capital
Totals
Trail and
Management/
Equipment
Charitable
Construction
Nonmajor Special Revenue Funds
Forestry
Transportation
Utility
Reserve
Gambling
Seal Coating
2009
2008
$ -
$
$
$ 198,632
$
$
$ 232,053
$ 231,103
2,000
1,024
3,194
27,646
-
9,514
10,678
-
54,437
878,370
951,622
271
1,798
1,983
21,101
236
(344)
25,676
59,693
9,729
-
39
9,268
-
853,108
511,763
12,000
11,312
12,661
220,796
9,504
54,093
1,992,401
1,781,827
-
-
-
38,772
20,340
-
59,112
41,764
12,488
62,298
10,651
-
62,920
187,811
350,765
-
-
20,658
-
924,104
893,791
-
122,361
129,372
-
-
162,242
-
24,236
-
-
24,236
183,034
12,488
62,298
94,317
20,340
62,920
1,317,624
1,760,968
(488)
11,312
(49,637)
126,479
(10,836)
(8,827)
674,777
20,859
-
-
(9,400)
-
(363,292)
(285,178)
12,264
12,264
5,874
(9,400)
12,264
(351,028)
(279,304)
(488)
11,312
(59,037)
138,743
(10,836)
(8,827)
323,749
(258,445)
6,318
54,864
147,314
871,129
16,437
18,008
958,465
1,216,910
$ 5,830
$ 66,176
$ 88,277
$ 1,009,872
$ 5,601
$ 9,181
$ 1,282,214
$ 958,465
ON
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OZ'!
NONMAJOR DEBT SERVICE FUNDS
The City's Debt Service Funds account for eight types of bonded indebtedness:
• Certificates of Indebtedness
• Capital Improvement Bonds
• G.O. Revenue Bonds
• Tax Increment Bonds
• Permanent Improvement Revolving Bonds
• State Aid Bonds
• Special Assessment Bonds
• Open Space Referendum Bonds
Certificates of Indebtedness - (G.O. Equipment Certificates - 2006B, 2007A, 2008A and 2009A) are repaid
primarily from general property taxes.
Capital Improvement Bonds - (G.O. Capital Improvement Bonds 2004A and 2005B) are repaid primarily from
general property taxes
G.O. Revenue Bonds - (EDA Public Facility Lease Revenue Bonds 2004) are repaid from annual lease payments
from the YMCA, Community Center operations and general property tax.
Tax Increment Bonds - (Tax Increment Refunding Bonds of 2003B and 2004B) are repaid primarily from tax
increments.
Permanent Improvement Revolving (PIR) Bonds - (G.O. PIR Bonds of 2003A and 2006A) are used to finance
assessable improvements within the City and are repaid primarily from special assessments levied against benefited
properties.
State Aid Bonds - (2001B State Aid Bonds and 2009A State Aid Refunding Bonds) are used to finance MSA
eligible cost for road construction and improvements. These bonds are repaid from a portion of state aid allotments
received by the City.
Special Assessment Bonds - (G.O. Improvement Bonds 2005A) are used to finance assessable improvements within
the City and are repaid primarily from special assessments levied against benefited properties.
Open Space Referendum Bonds - are used to finance the purchase of land to remain as open space.
01
CITY OF ANDOVER, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2009
With Comparative Totals For December 31, 2008
011
EDA Public
G.O.
G.O.
G.O.
G.O.
G.O. Capital
Facility Lease
G.O. TIE
Equipment
Equipment
Equipment
Equipment
Improvement
Revenue
Refunding
Certificate
Certificate
Certificate
Certificate
Bonds
Bonds
Bonds
2006B
2007A
2008A
2009A
2004A
2004
2003B
Assets:
Cash and investments
$ 233,920
$ 235,568
$ 169,720
$ 139,145
$ 10,247
$ 4,568
$ 12,631
Cash and investments with escrow agent
-
-
-
-
-
710,059
-
Accrued interest
624
554
368
302
-
Due from other funds
-
-
-
-
-
-
Property taxes receivable:
Unremitted
1,633
2,114
1,717
1,406
3,614
9,364
Delinquent
-
6,445
5,239
4,289
11,023
28,563
Special assessments receivable:
Delinquent
-
-
-
-
-
Deferred
-
-
-
-
-
Total assets
236,177
244,681
177,044
145,142
24,884
752,554
12,631
Liabilities and Fund Balance
Liabilities:
Interfund payable
-
-
-
-
110,000
Deferred revenue
6,445
5,239
4,289
11,023
28,563
Total liabilities
-
6,445
5,239
4,289
11,023
138,563
-
Fund balance:
Reserved for debt service
236,177
238,236
171,805
140,853
13,861
613,991
12,631
Total liabilities and fund balance
$ 236,177
$ 244,681
$ 177,044
$ 145,142
$ 24,884
$ 752,554
$ 12,631
011
Statement 16
G.O. TIF
G.O.
G.O.
State
G.O.
Refunding
PIR Fund
PIR Fund
State
Aid Refunding
Improvement
Open Space
Totals
Bonds
Bonds of
Bonds of
Aid Bonds
Bonds
Bonds
Referendum
Nonmajor Debt Service Funds
2004B
2003A
2006A
2001B
2009A
2005A
Bonds
2009
2008
$ 21,020
$ 15,834
$ 13,364
$ 209,266
$ 8,300
$ 908,502
$ 3,824
$ 1,985,909
$ 2,654,913
-
-
-
-
936,829
-
-
1,646,888
726,874
185
4,286
107
835
7,261
33,325
-
-
-
-
-
10,000
1,484
21,332
17,114
-
3,424
58,983
57,821
-
32,988
-
32,988
10,392
14,594
-
-
379,341
-
393,935
448,508
35,614
15,834
13,364
209,451
949,415
1,320,938
9,567
4,147,296
3,958,947
- - - 110,000 70,000
14,594 412,329 3,424 485,906 516,721
14,594 412,329 3,424 595,906 586,721
21,020 15,834 13,364 209,451 949,415 908,609 6,143 3,551,390 3,372,226
$ 35,614 $ 15,834 $ 13,364 $ 209,451 $ 949,415 $ 1,320,938 $ 9,567 $ 4,147,296 $ 3,958,947
OYA
CITY OF ANDOVER, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2009
With Comparative Totals For The Year Ended December 31, 2008
o%
EDA Public
G.O.
G.O.
G.O.
G.O.
G.O. Capital
G.O. Capital
Facility Lease
Equipment
Equipment
Equipment
Equipment
Improvement
Improvement
Revenue
Certificate
Certificate
Certificate
Certificate
Bonds
Bonds
Bonds
2006B
2007A
2008A
2009A
2004A
2005B
2004
Revenues:
General property taxes
$ 164,083
$ 212,332
$ 172,457
$ 141,156
$ 363,057
$
$ 940,640
Intergovernmental
832
1,082
880
720
1,848
4,790
Special assessments
-
-
-
-
-
-
Investment income
3,499
2,941
1,176
1,872
(4,862)
870
(23,705)
Total revenues
168,414
216,355
174,513
143,748
360,043
870
921,725
Expenditures:
Debt service:
Principal retirement
155,000
185,000
150,000
-
265,000
115,000
390,000
Interest
8,649
19,500
16,240
2,895
95,580
1,782
944,806
Paying agent fees
431
431
-
-
-
-
2,000
Professional services
2,750
Total expenditures
164,080
204,931
166,240
2,895
360,580
116,782
1,339,556
Revenues over (under) expenditures
4,334
11,424
8,273
140,853
(537)
(115,912)
(417,831)
Other financing sources (uses):
Transfers in
10,000
-
-
-
-
353,892
Transfers out
-
(9,973)
-
Refunding bonds issued
Bond premium
Total other financing sources (uses)
10,000
-
-
-
-
(9,973)
353,892
Net increase (decrease) in fund balance
14,334
11,424
8,273
140,853
(537)
(125,885)
(63,939)
Fund balance - January 1
221,843
226,812
163,532
-
14,398
125,885
677,930
Fund balance - December 31
$ 236,177
$ 238,236
$ 171,805
$ 140,853
$ 13,861
$ -
$ 613,991
o%
Statement 17
G.O. TIF
G.O. TIF
G.O.
G.O.
State
G.O.
Refunding
Refunding
PIR Fund
PIR Fund
State
Aid Refunding
Improvement
Open Space
Totals
Bonds
Bonds
Bonds of
Bonds of
Aid Bonds
Bonds
Bonds
Referendum
Nonmajor Debt Service Funds
2003B
2004B
2003A
2006A
2001B
2009A
2005A
Bonds
2009
2008
$
$
$
$
$
$
$
$ 162,760
$ 2,156,485
$ 2,070,804
-
220,898
8,135
-
-
239,185
281,291
3,562
-
-
-
-
55,945
-
59,507
80,655
34
712
447
391
1,885
4,461
42,419
6,849
38,989
(13,848)
34
4,274
447
391
222,783
12,596
98,364
169,609
2,494,166
2,418,902
240,000
520,000
795,000
325,000
160,000
-
565,000
-
3,865,000
3,460,000
13,020
74,600
30,463
74,031
78,583
8,135
93,738
1,462,022
1,537,013
431
805
431
431
431
-
403
5,794
7,421
-
-
-
-
-
24,688
2,033
29,471
4,000
253,451
595,405
825,894
399,462
239,014
32,823
661,174
-
5,362,287
5,008,434
(253,417)
(591,131)
(825,447)
(399,071)
(16,231)
(20,227)
(562,810)
169,609
(2,868,121)
(2,589,532)
220,000
600,000
830,000
400,000
-
2,413,892
1,385,178
-
-
-
-
-
(326,276)
(336,249)
(15,648)
955,000
955,000
-
-
-
-
14,642
14,642
-
220,000
600,000
830,000
400,000
969,642
(326,276)
3,047,285
1,369,530
(33,417)
8,869
4,553
929
(16,231)
949,415
(562,810)
(156,667)
179,164
(1,220,002)
46,048
12,151
11,281
12,435
225,682
1,471,419
162,810
3,372,226
4,592,228
$ 12,631
$ 21,020
$ 15,834
$ 13,364
$ 209,451
$ 949,415
$ 908,609
$ 6,143
$ 3,551,390
$ 3,372,226
MI
- This page intentionally left blank -
fUIII
NONMAJOR CAPITAL PROJECT FUNDS
The City of Andover had the following Capital Projects Funds during the year:
Storm Sewer Project - This fund was established to account for storm sewer fees and improvements as part of
development and ongoing maintenance.
Park Dedication - This fund was established to account for contributions associated with land development to be
used for constructing and upgrading the City's park system.
Building Fund - This fund was established to account for miscellaneous building improvements for all facilities.
Equipment Certificates 2008A - This fund was established to account for the purchase of capital equipment that was
financed through the issuance of capital notes.
Equipment Certificates 2009A - This fund was established to account for the purchase of capital equipment that was
financed through the issuance of capital notes.
Open Space Referendum Bonds - This fund was established to account for the purchase of various land acquisitions
for open space preservation within the City.
1111
CITY OF ANDOVER, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
December 31, 2009
Comparative Totals For December 31, 2008
Illy,
Storm
Equipment
Sewer
Park
Building
Certificates
Project
Dedication
Fund
2008
Assets:
Cash and investments
$ 1,023
$ 12,498
$ 77,809
$ 9,584
Accrued interest
-
-
292
-
Property taxes receivable:
Unremitted
488
-
Delinquent
-
1,581
-
-
Total assets
1,023
14,567
78,101
9,584
Liabilities and Fund Balance
Liabilities:
Interfund payables
61,000
-
-
-
Accounts payable
-
-
1,747
Deferred revenue
1,581
-
Total liabilities
61,000
1,581
1,747
Fund balance (deficit):
Reserved for projects
-
-
-
9,584
Unreserved:
Designated for projects
12,986
76,354
-
Undesignated
(59,977)
-
-
-
Total fund balance (deficit)
(59,977)
12,986
76,354
9,584
Total liabilities and fund balance
$ 1,023
$ 14,567
$ 78,101
$ 9,584
Illy,
Statement 18
Equipment Open Space Totals
Certificates Referendum Nonmajor Capital Projects Funds
$ 390,639 $ 5,747 $ 497,300 $ 677,452
1,478 - 1,770 5,270
- 488 401
- - 1,581 1,581
392,117 5,747 501,139 684,704
615,000 676,000
70,000
293 2,040
39,117
- 1,581
1,581
615,293 679,621
110,698
392,117 401,701
- 89,340
- (609,546) (669,523)
392,117 (609,546) (178,482)
$ 392,117 $ 5,747 $ 501,139
485,494
155,809
(67,297)
574,006
$ 684,704
111191
CITY OF ANDOVER, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
For The Year Ended December 31, 2009
With Comparative Totals For The Year Ended December 31, 2008
11111!
Storm
Equipment
Sewer
Park
Building
Certificates
Project
Dedication
Fund
2008
Revenues:
General property taxes
$
$ 55,742
$
$
Intergovernmental
290
Investment income
(1,533)
(398)
(2,020)
(1,092)
Miscellaneous:
Park dedication fees
41,216
-
Other
16,095
12,500
Total revenues
(1,533)
112,945
10,480
(1,092)
Expenditures:
Current:
General government
-
21,188
Public safety
-
-
Public works
-
1,093
Parks and recreation
131,385
-
Capital outlay:
General government
-
35,640
Public safety
299,319
Public works
-
138,766
Parks and recreation
47,294
-
Total expenditures
178,679
21,188
474,818
Revenues over (under) expenditures
(1,533)
(65,734)
(10,708)
(475,910)
Other financing sources (uses):
Transfers in
9,973
Bonds issued
-
Bond premium
-
Total other financing sources (uses)
9,973
Net increase (decrease) in fund balance
(1,533)
(65,734)
(735)
(475,910)
Fund balance (deficit) - January 1
(58,444)
78,720
77,089
485,494
Fund balance (deficit) - December 31
$ J5 ,977
$ 12,986
$ 76,354
$ 9,584
11111!
Statement 19
Equipment
Open Space
Totals
1,499,631
Certificates
Referendum
Nonmajor Capital Projects Funds
2009A
Bonds
2009
2008
$
$ -
S 55,742 $
54,628
385,000
9,476
9,766
1,138
12,982
(510)
7,429
4,003
-
-
41,216
133,585
-
-
28,595
169,805
12,982
8,966
142,748
363,159
$ (178,482)
$ 574,006
-
995
22,183
8,938
10,004
-
10,004
11,162
-
1,093
471,605
131,385
192,379
35,640 368,094
299,319 -
- 138,766 278,862
934,940 982,234 168,591
10,004
935,935
1,620,624
1,499,631
2,978
(926,969)
(1,477,876)
(1,136,472)
-
326,276
336,249
90,648
385,000
-
385,000
630,000
4,139
4,139
-
389,139
326,276
725,388
720,648
392,117
(600,693)
(752,488)
(415,824)
-
(8,853)
574,006
989,830
$ 392,117
$ (609,546)
$ (178,482)
$ 574,006
1111.7
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - EDA GENERAL
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Statement 20
Variance with
Final Budget -
Budgeted Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
Revenues:
Charges for services $
160,000 $
160,000
$ 181,416
$ 21,416
$ 173,096
Investment income
6,000
6,000
9,486
3,486
13,387
Miscellaneous
-
-
2,487
2,487
1,693
Total revenues
166,000
166,000
193,389
27,389
188,176
Expenditures:
Current:
Economic development
141,401
141,401
122,211
19,190
108,941
Net increase (decrease) in fund balance $
24,599 $
24,599
71,178
$ 46,579
79,235
Fund balance (deficit) - January 1
329,652
250,417
Fund balance (deficit) - December 31
$ 400,830
$ 329,652
11111
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Revenues:
Intergovernmental
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
Economic development
Net increase (decrease) in fund balance
Fund balance (deficit) - January I
Fund balance (deficit) - December 31
Statement 21
fUlrl
2,260
$ 9,828
4,261
$ 2,260
Variance with
Final Budget -
Budgeted
Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
$ 50,000
$ 50,000
$
$ (50,000)
$ 12,313
300
300
243
(57)
105
3,500
3,500
7,475
3,975
6,012
53,800
53,800
7,718
(46,082)
18,430
50,000
50,000
150
49,850
20,431
$ 3,800
$ 3,800
7,568
$ 3,768
(2,001)
fUlrl
2,260
$ 9,828
4,261
$ 2,260
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY CENTER
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Revenues:
Charges for services
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
Parks and recreation
Capital outlay:
Parks and recreation
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses)
Transfers out
Net increase (decrease) in fund balance
Fund balance (deficit) - January I
Fund balance (deficit) - December 31
Statement 22
Variance with
Final Budget -
Budgeted Amounts Positive 2008
Original Final Actual (Negative) Actual
$ 613,000 $ 613,000 $ 610,099 $ (2,901) $ 553,984
- - (11,595) (11,595) (28,156)
849,400 849,400 824,110 (25,290) 472,459
1,462,400 1,462,400 1,422,614 (39,786) 998,287
1,022,429 1,022,429 903,446 118,983 886,276
- - - - 13,952
1,022,429 1,022,429 903,446 118,983 900,228
439,971 439,971 519,168 79,197 98,059
(353,892) (353,892) (353,892) - (210,178)
$ 86,079 $ 86,079 165,276 $ 79,197 (112,119)
111N
(584,515)
S (419,239)
(472,396)
S (584,515)
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - DRAINAGE AND MAPPING
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Statement 23
Variance with
Final Budget -
Budgeted Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
Revenues:
Charges for services $ 10,000 $
10,000
$ 12,226
$ 2,226
$ 8,147
Investment income 1,000
1,000
2,102
1,102
3,361
Miscellaneous -
-
-
-
281
Total Revenues 11,000
11,000
14,328
3,328
11,789
Expenditures:
Current:
Public works 13,500
13,500
5,827
7,673
7,010
Net increase (decrease) in fund balance $ (2,500) $
(2,500)
8,501
$ 11,001
4,779
Fund balance (deficit) - January 1
79,045
74,266
Fund balance (deficit) - December 31
$ 87,546
$ 79,045
1U1*l
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - LRRWMO
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Statement 24
Variance with
Final Budget -
Budgeted Amounts
Positive
2008
Original Final
Actual
(Negative)
Actual
Revenues:
General property taxes $ 35,000 $ 33,842
$ 33,421
$ (421)
$ 33,546
Intergovernmental - 1,158
170
(988)
687
Investment income - -
395
395
324
Total revenues 35,000 35,000
33,986
(1,014)
34,557
Expenditures:
Current:
Public works 35,365 35,365
33,627
1,738
28,438
Net increase (decrease) in fund balance $ (365) $ (365)
359
$ 724
6,119
Fund balance (deficit) - January 1
17,953
11,834
Fund balance (deficit) - December 31
$ 18,312
$ 17,953
IsM
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - FORESTRY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Statement 25
Variance with
Final Budget -
Budgeted Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
Revenues:
Intergovernmental $ 12,500 $
12,500
$ 2,000
$ (10,500)
$ 10,527
Investment income -
-
271
271
76
Miscellaneous -
-
9,729
9,729
11,586
Total revenues 12,500
12,500
12,000
(500)
22,189
Expenditures:
Current:
Public works 14,000
14,000
12,488
1,512
22,389
Net increase (decrease) in fund balance $ (1,500) $
(1,500)
(488)
$ 1,012
(200)
Fund balance (deficit) - January 1
6,318
6,518
Fund balance (deficit) - December 31
$ 5,830
$ 6,318
INS
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - TRAIL AND TRANSPORTATION
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
INV,
Statement 26
2008
Actual
$ 21,434
889
22,323
32,541
$ 54,864
Variance with
Final Budget -
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
Revenues:
Charges for services
$ 30,600 $ 30,600
$ 9,514
$ (21,086)
Investment income
2,500 2,500
1,798
(702)
Net increase (decrease) in fund balance
$ 33,100 $ 33,100
11,312
$ (21,788)
Fund balance (deficit) - January 1
54,864
Fund balance (deficit) - December 31
$ 66,176
INV,
Statement 26
2008
Actual
$ 21,434
889
22,323
32,541
$ 54,864
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - RIGHT -OF -WAY MANAGEMENT /UTILITY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Revenues:
Charges for services
Investment income
Total revenues
Expenditures:
Current:
Public works
Revenue over (under) expenditures
Other financing sources (uses):
Transfers out
Net increase (decrease) in fund balance
Fund balance (deficit) - January I
Fund balance (deficit) - December 31
Statement 27
INN
Variance with
Final Budget -
Budgeted
Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
$ 40,000
$ 40,000
$ 10,678
$ (29,322)
$ 14,503
5,000
5,000
1,983
(3,017)
7,047
45,000
45,000
12,661
(32,339)
21,550
73,718
73,718
62,298
11,420
60,858
(28,718)
(28,718)
(49,637)
(20,919)
(39,308)
(9,400)
(9,400)
(9,400)
$ (38,118)
$ (38,118)
(59,037)
$ (20,919)
(39,308)
147,314
186,622
$ 88,277
$ 147,314
INN
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - CAPITAL EQUIPMENT RESERVE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Revenues:
General property taxes
Intergovernmental
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public works
Parks and recreation
Capital outlay:
Public works
Parks and recreation
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers out
Proceeds from the sale of capital assets
Total other finance sources (uses)
Net increase (decrease) in fund balance
Fund balance (deficit) - January 1
Fund balance (deficit) - December 31
Statement 28
$ 151,000 $ 151,000
101
(75,000)
12,264 12,264 5,874
12,264 12,264 (69,126)
138,743 $ (12,257) (178,726)
871,129 1,049,855
$ 1,009,872 $ 871,129
Variance with
Final Budget -
Budgeted
Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
$ 210,000
$ 203,051
$ 198,632
$ (4,419)
$ 197,557
-
6,949
1,024
(5,925)
4,119
15,000
15,000
21,101
6,101
47,994
-
-
39
39
5,163
225,000
225,000
220,796
(4,204)
254,833
29,000
29,000
38,772
(9,772)
22,264
-
-
10,651
(10,651)
3,330
20,658
(20,658)
7,515
-
-
-
-
162,242
45,000
45,000
24,236
20,764
169,082
74,000
74,000
94,317
(20,317)
364,433
151,000
151,000
126,479
(24,521)
(109,600)
$ 151,000 $ 151,000
101
(75,000)
12,264 12,264 5,874
12,264 12,264 (69,126)
138,743 $ (12,257) (178,726)
871,129 1,049,855
$ 1,009,872 $ 871,129
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - CHARITABLE GAMBLING
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Revenues:
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Net increase (decrease) in fund balance
Fund balance (deficit) - January I
Fund balance (deficit) - December 31
Statement 29
INN
Variance with
Final Budget -
Budgeted
Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
$ 750
$ 750
$ 236
$ (514)
$ 396
13,000
13,000
9,268
(3,732)
14,569
13,750
13,750
9,504
(4,246)
14,965
20,700
20,700
20,340
360
19,500
$ (6,950)
$ (6,950)
(10,836)
$ (3,886)
(4,535)
16,437
20,972
$ 5,601
$ 16,437
INN
CITY OF ANDOVER, MINNESOTA
SPECIAL REVENUE FUND - CONSTRUCTION SEAL COATING
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2009
With Comparative Actual Amounts For The Year Ended December 31, 2008
Revenues:
Charges for services
Investment income
Total revenues
Expenditures:
Current:
Public works
Net increase (decrease) in fund balance
Fund balance (deficit) - January 1
Fund balance (deficit) - December 31
Statement 30
Ifi[y
18,008
$ 9,181
52,020
$ 18,008
Variance with
Final Budget -
Budgeted
Amounts
Positive
2008
Original
Final
Actual
(Negative)
Actual
$ 25,000
$ 25,000
$ 54,437
$ 29,437
$ 180,458
12,500
12,500
(344)
(12,844)
14,270
37,500
37,500
54,093
16,593
194,728
25,000
25,000
62,920
(37,920)
228,740
$ 12,500
$ 12,500
(8,827)
$ (21,327)
(34,012)
Ifi[y
18,008
$ 9,181
52,020
$ 18,008
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department or
agency to other departments or agencies of the government and to other government units, on a cost reimbursement
basis. The City of Andover had the following Internal Service Funds during the year:
Central Equipment Maintenance — This fund accounts for the maintenance of the equipment for the City.
Risk Management — This fund accounts for the expenditures in payment of insurance deductibles, loss reduction,
safety training and administrative expense.
INIM
CITY OF ANDOVER, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2009
With Comparative Totals for December 31, 2008
Central
Equipment Risk
Maintenance Management
Statement 31
Totals
2009 2008
Assets:
Current assets:
Cash and cash equivalents
$ 41,296
$ 201,237
$ 242,533
$ 99,410
Accrued interest
245
572
817
1,113
Prepaid items
1,750
-
1,750
1,750
Inventories - at cost
63,065
-
63,065
65,450
Total assets
106,356
201,809
308,165
167,723
Liabilities:
Current liabilities:
Accounts payable
14,545
1,121
15,666
22,260
Due to other governmental units
-
2,855
2,855
100
Salaries payable
5,904
405
6,309
6,138
Total liabilities
20,449
4,381
24,830
28,498
Net assets:
Unrestricted
$ 85,907
$ 197,428
$ 283,335
$ 139,225
INN
CITY OF ANDOVER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2009
With Comparative Totals For The Year Ended December 31, 2008
Central
Equipment Risk
Maintenance Management
Operating revenues
Statement 32
Totals
2009 2008
User charges
$ 646,879
$ 314,843
$ 961,722
$ 808,392
Other
452
34,481
34,933
13,148
Total operating revenues
647,331
349,324
996,655
821,540
Operating expenses:
Personal services
219,339
106,438
325,777
311,804
Supplies
241,466
3,354
244,820
286,800
Other service charges
90,637
194,135
284,772
234,140
Total operating expenses
551,442
303,927
855,369
832,744
Operating income (loss)
95,889
45,397
141,286
(11,204)
Nonoperating revenues (expenses):
Investment income
1,163
1,661
2,824
5,747
Change in net assets
97,052
47,058
144,110
(5,457)
Net assets - January 1
(11,145)
150,370
139,225
144,682
Net assets - December 31
$ 85,907
$ 197,428
$ 283,335
$ 139,225
1607
CITY OF ANDOVER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2009
With Comparative Totals For The Year Ended December 31, 2008
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers
Payment to employees
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Receipt of advances from other funds
Payment of advances to other funds
Net cash flows from noncapital financing activities
Cash flows from investing activities:
Investment income
Net increase in cash and cash equivalents
Cash and cash equivalents - January I
Cash and cash equivalents - December 31
Reconciliation of operating income to net cash provided
(used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
Decrease (increase) in inventory
Increase (decrease) in accounts payable
Increase (decrease) in contracts payable
Increase (decrease) in due to other governmental units
Increase (decrease) in salaries payable
Total adjustments
Net cash provided by operating activities
Central
Equipment Risk
Maintenance Management
Statement 33
Totals
2009 2008
$ 647,331 $ 349,324 $ 996,655 $ 821,540
(336,365) (194,681) (531,046) (517,411)
(219,214) (106,392) (325,606) (310,304)
91,752 48,251 140,003 (6,175)
(60,000) - (60,000) (20,000)
60,000 60,000 20,000
(60,000) 60,000 - -
1,083 2,037 3,120 5,391
32,835 110,288 143,123 (784)
8,461 90,949 99,410 100,194
$ 41,296 $ 201,237 $ 242,533 $ 99,410
$ 95,889 $ 45,397 $ 141,286 $ (11,204)
2,385
2,385
1,425
(6,647)
53
(6,594)
2,104
-
-
(100)
-
2,755
2,755
100
125
46
171
1,500
(4,137)
2,854
(1,283)
5,029
$ 91,752 $
48,251
$ 140,003
$ (6,175)
INN
AGENCYFUNDS
Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations and /or other governmental units. The City of Andover had the following Agency Funds
during the year:
General Escrow — This fund is used to account for distribution of funds for insurance premiums of retirees.
General Agency — This fund is used to account for the collection and distribution of funds relating to building and
land development activities.
IN
CITY OF ANDOVER, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
December 31, 2009
General
Escrow
Assets:
Cash and investments
$ 16,498
Liabilities:
Accounts payable
131
Deposits payable
16,367
Total liabilities
$ 16,498
1W,
General
Agency
$ 233,423
233,423
$ 233,423
Statement 34
Total
$ 249,921
131
249,790
$ 249,921
CITY OF ANDOVER, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 35
FIDUCIARY FUNDS
For The Year Ended December 31, 2009
General Escrow Fund
Assets:
Cash and investments
Liabilities:
Accounts payable
Deposits payable
Total liabilities
General Agency Fund
Assets:
Cash and investments
Liabilities:
Accounts payable
Deposits payable
Total liabilities
Total Fiduciary Funds
Assets:
Cash and investments
Liabilities:
Accounts payable
Deposits payable
Total liabilities
Balance Balance
January 1, December 31,
$ 36,088 $ 45,680 $ (65,270) $ 16,498
27 32,577
36,061 13,103
$ 36,088 $ 45,680
(32,473) 131
(32,797) 16,367
$ (65,270) $ 16,498
$ 452,297 $ 526,413 $ (745,287) $ 233,423
10,974 307,905
441,323 218,508
$ 452,297 $ 526,413
(318,879) -
(426,408) 233,423
$ (745,287) $ 233,423
$ 488,385 $ 572,093 $ (810,557) $ 249,921
11,001 340,482
477,384 231,611
$ 488,385 $ 572,093
123
(351,352) 131
(459,205) 249,790
$ (810,557) $ 249,921
- This page intentionally left blank -
124
SUPPLEMENTARY FINANCIAL INFORMATION
`viz
CITY OF ANDOVER, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2009
IP41
Authorized
Issue
Maturity
Interest
and
Date
Date
Rate
Issue
GOVERNMENTAL ACTIVITIES:
General Obligation Revenue Bonds:
2004 EDA Pub Eac Lease Revenue Bonds
4/23/2004
2/1/2014
2.215 - 5.400%
$ 19,580,000
2006 EDA Pub Eac Lease Revenue Refunding Bonds
12/1/2006
2/1/2034
4.00 -4.50%
10,000,000
2007 EDA Pub Eac Lease Revenue Refunding Bonds
1/1/2007
2/1/2034
4.00 -4.50%
6,865,000
Total general obligation revenue bonds
36,445,000
Special Assessment Bonds:
2005A G.O. Improvement Bonds
4/28/2005
2/1/2011
2.95 -3.65%
3,560,000
Tax Increment Bonds:
2003B G.O. Tax Increment Refunding Bonds
6/1/2003
8/1/2010
2.00 -3.00%
1,530,000
2004B G.O. Tax Increment Refunding Bonds
3/16/2004
2/1/2013
2.00 -3.25%
4,260,000
Total tax increment bonds
5,790,000
Certificates of Indebtedness:
2006B G.O. Equipment Certificates
5/10/2006
2/1/2010
3.60 -3.65%
460,000
2007A G.O. Equipment Certificates
3/13/2007
2/1/2011
4.00%
760,000
2008A G.O. Equipment Certificates
9/23/2008
2/1/2012
3.50%
630,000
2009A G.O. Equipment Certificates
3/26/2009
2/1/2012
2.00 -2.25%
385,000
Total certificates of indebtedness
2,235,000
Capital Improvement Bonds:
2004A G.O. Capital Improvement Bonds
3/16/2004
2/1/2017
2.00 -3.75%
3,890,000
2005B G.O. Capital Improvement Bonds
4/28/2005
2/1/2009
2.65 -3.10%
340,000
Total capital improvement bonds
4,230,000
Permanent Improvement Revolving Bonds:
2003A Permanent Improvement Revolving Bonds
6/1/2003
2/1/2010
2.00 -2.60%
4,580,000
2006A Permanent Improvement Revolving Bonds
5/10/2006
2/1/2014
3.60 -3.85%
2,450,000
Total permanent improvement revolving bonds
7,030,000
State Aid Bonds:
2001B State Aid Street Bonds
6/5/2001
2/1/2010
2.90 -5.00%
2,755,000
2009A State Aid Street Refunding Bonds
3/26/2009
2/1/2015
2.25 -2.80%
955,000
Total state aid bonds:
3,710,000
Total bonded indebtedness
63,000,000
Compensated absences payable
Total governmental activities indebtedness
63,000,000
BUSINESS -TYPE ACTIVITIES:
General Obligation Revenue Bonds:
2002 G.O. Water Revenue Bonds
5/9/2002
8/1/2012
2.30 -5.00%
9,780,000
2007B G.O. Water Revenue Refunding Bonds
3/13/2007
2/1/2023
4.00 -4.25%
6,570,000
2009A G.O. Water Revenue Bonds
3/26/2009
2/1/2024
2.00 -4.25
1,025,000
Total general obligation revenue bonds
17,375,000
Compensated absences payable
Total business -type activities indebtedness
17,375,000
Total City indebtedness
$ 80,375,000
IP41
Exhibit 1
Principal Payments
Prior
Current
Outstanding
2010 Payment
Years
Year
12/31/09
Principal
Interest
Total
$ 560,000
$ 390,000
$ 18,630,000
$ 405,000
$ 930,684
$ 1,335,684
-
-
10,000,000
-
424,227
424,227
-
-
6,865,000
-
291,982
291,982
560,000
390,000
35,495,000
405,000
1,646,893
2,051,893
545,000
565,000
2,450,000
1,850,000
52,690
1,902,690
1,040,000
240,000
250,000
250,000
7,500
257,500
1,475,000
520,000
2,265,000
530,000
60,812
590,812
2,515,000
760,000
2,515,000
780,000
68,312
848,312
145,000
155,000
160,000
160,000
2,920
162,920
180,000
185,000
395,000
195,000
11,900
206,900
-
150,000
480,000
154,000
14,105
168,105
-
-
385,000
130,000
7,037
137,037
325,000
490,000
1,420,000
639,000
35,962
674,962
850,000
265,000
2,775,000
280,000
88,417
368,417
225,000
115,000
-
-
-
-
1,075,000
380,000
2,775,000
280,000
88,417
368,417
2,965,000
795,000
820,000
820,000
10,660
830,660
310,000
325,000
1,815,000
335,000
62,026
397,026
3,275,000
1,120,000
2,635,000
1,155,000
72,686
1,227,686
995,000
160,000
1,600,000
1,600,000
37,612
1,637,612
-
-
955,000
-
23,427
23,427
995,000
160,000
2,555,000
1,600,000
61,039
1,661,039
9,290,000
3,865,000
49,845,000
6,709,000
2,025,999
8,734,999
-
-
541,606
-
-
-
9,290,000
3,865,000
50,386,606
6,709,000
2,025,999
8,734,999
1,670,000
375,000
7,735,000
395,000
359,221
754,221
-
-
6,570,000
-
266,146
266,146
-
-
1,025,000
60,000
32,657
92,657
1,670,000
375,000
15,330,000
455,000
658,024
1,113,024
-
-
120,546
-
-
-
1,670,000
375,000
15,450,546
455,000
658,024
1,113,024
$ 10,960,000
$ 4,240,000
$ 65,837,152
$ 7,164,000
$ 2,684,023
$ 9,848,023
127
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF TAX CAPACITY RATES AND LEVIES
Exhibit 2
128
Taxes Payable
2010
2009
Tax capacity values
$ 28,743,240
$
31,446,280
Captured tax increment value
(2,284,466)
(2,343,333)
Fiscal disparities - contribution
(1,179,036)
(1,070,166)
Local taxable value
25,279,738
28,032,781
Fiscal disparities - distribution
4,713,020
4,395,187
Adjusted tax capacity
$ 29,992,758
$
32,427,968
2010
2009
Certified
Tax Capacity
Certified
Tax Capacity
Levy
Rate
Levy
Rate
General Revenue Levy:
General Fund
$ 7,596,494
$
6,844,236
Capital Equipment /Projects
210,000
210,000
Parks Projects
59,410
59,410
Road and Bridge
1,003,056
1,151,136
Pedestrian Trail Maintenance
51,773
51,773
Total General Revenue Levy
8,920,733
30.263%
8,316,555
25.755%
Debt Service Levy:
2004A G.O. Capital Improvement Bonds
368,418
378,609
2004 EDA Public Facility Revenue Bonds
934,203
980,914
2006B G.O. Equipment Certificate
-
171,066
2007A G.O. Equipment Certificate
208,000
221,340
2008A G.O. Equipment Certificate
171,410
179,895
2009A G.O. Equipment Certificate
130,738
147,241
Total Debt Service Levy
1,812,769
6.117%
2,079,065
6.426%
Lower Rum River Watershed
35,000
0.329%
35,000
0.303%
Total
10,768,502
36.709%
10,430,620
32.484%
Voter - Approved Open Space Referendum - MV
87,797
0.00606%
162,900
0.00551%
$ 10,856,299
$
10,593,520
128
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
GENERAL OBLIGATION BONDS
December 31, 2009
Exhibit 3
Taxes
Tax Increment Bonds
Certificates of Indebtedness
Payable
2003B
2004B
Total
2007A
2008A
2009A
Total
2010
$ 257,500
$ 590,812
$ 848,312
$ 204,000
$ 168,610
$ 129,331
$
501,941
2011
-
610,050
610,050
-
168,905
131,463
300,368
2012
607,875
607,875
-
-
-
2013
-
599,588
599,588
-
-
-
-
$ 257,500
$ 2,408,325
$ 2,665,825
$ 204,000
$ 337,515
$ 260,794
$
802,309
Capital
EDA Public Facility Lease
Improvement
Revenue
Refunding
Refunding
Total
Taxes
Bonds
Bonds
Bonds
Bonds
Deferred Tax
Payable
2004A
of 2004
of 2006
of 2007
Total
Levies
2010
$ 368,417
$ 700,684
$
$
$ 700,684
$
2,419,354
2011
375,143
694,891
694,891
$
1,980,452
2012
385,993
697,456
697,456
$
1,691,324
2013
390,905
693,534
693,534
$
1,684,027
2014
404,596
269,373
212,114
145,991
627,478
$
1,032,074
2015
417,000
-
371,528
258,483
630,011
$
1,047,011
2016
423,050
372,828
259,283
632,111
$
1,055,161
2017
427,875
369,589
260,323
629,912
$
1,057,787
2018
-
369,064
259,773
628,837
$
628,837
2019
368,628
264,183
632,811
$
632,811
2020
372,525
258,214
630,739
$
630,739
2021
366,328
262,249
628,577
$
628,577
2022
369,921
256,145
626,066
$
626,066
2023
370,234
253,020
623,254
$
623,254
2024
365,207
264,423
629,630
$
629,630
2025
367,812
257,461
625,273
$
625,273
2026
364,346
261,447
625,793
$
625,793
2027
363,444
261,889
625,333
$
625,333
2028
359,127
264,770
623,897
$
623,897
2029
362,690
259,468
622,158
$
622,158
2030
363,030
262,191
625,221
$
625,221
2031
359,379
262,286
621,665
$
621,665
2032
362,592
258,641
621,233
$
621,233
2033
362,313
262,667
624,980
$
624,980
2034
563,660
391,111
954,771
$
954,771
$ 3,192,979
$ 3,055,938
$ 7,736,359
$ 5,484,018
$16,276,315
$ 22,937,428
IM
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF FUND TRANSFERS
December 31, 2009
General Fund
Sewer EF
Total General Fund
Special Revenue Funds (SRF)
Community Center SRF
2004 EDA Public Facility Lease Revenue Bond DST
Right of Way Management SRF
Road and Bridge CPF
Total Special Revenue Funds
Debt Service Funds (DSF)
2003A PIR DST
PIR CPF
2003B G.O. TIF Refunding Bonds DST
TIF Projects CPF
2004 EDA Public Facility Lease Revenue Bonds DST
Community Center SRF
2004B G.O. TIF Refunding Bonds DST
TIF Projects CPF
2005B G.O. Capital Improvement Bonds DST
Building CPF
2006A PIR DST
PIR CPF
2006B G.O. Capital Note DST
Storm Sewer EF
Open Space Referendum Bonds DST
Open Space Referendum Bonds CPF
Total Debt Service Funds
Capital Projects Funds (CPF)
Water Trunk CPF
Water EF
Sewer Trunk CPF
Sewer EF
Road and Bridge CPF
Right of Way Management SRF
Building CPF
2005B G.O. Capital Improvement Bonds DST
Transfer Transfer
In Out
$ 150,250 $
46,680
196,930 -
353,892
9,400
363,292
830,000
220,000
353,892
600,000 -
- 9,973
400,000 -
10,000 -
- 326,276
2,413,892 336,249
- 165,643
350,000 -
9,400
$ 9,973 $
11611]
Exhibit 4
General Fund Admin Allocation
General Fund Admin Allocation
Debt Service Allocation
Degredation of Roadways Allocation
Debt Service Allocation
Debt Service Allocation
Debt Service Allocation
Debt Service Allocation
Close Debt Service Fund
Debt Service Allocation
Debt Service Allocation
Open Space Land Purchase
Debt Service Allocation
Replacement Reserve
Degredation of Roadways Allocation
Close Debt Service Fund
CITY OF ANDOVER, MINNESOTA
SCHEDULE OF FUND TRANSFERS
December 31, 2009
Capital Projects Funds (CPF) (continued)
TIF Projects CPF
2003B G.O. TIF Refunding Bonds DST
2004B G.O. TIF Refunding Bonds DST
PIR CPF
2003A PIR DST
2006A PIR DST
Open Space Referendum Bonds CPF
Open Space Referendum Bonds DST
Total Capital Projects Funds
Enterprise Funds
Water Fund
Water Trunk Fund
General Fund
Sewer Fund
General Fund
Sewer Trunk Fund
Storm Sewer Fund
2006B G.O. Capital Note
Total Enterprise Funds
Total All Funds
$ $ 220,000 Debt Service Allocation
600,000 Debt Service Allocation
820,000
830,000 Debt Service Allocation
400,000 Debt Service Allocation
1,230,000
326,276 -
695,649 2,215,643
165,643 -
- 150,250
165,643 150,250
46,680
350,000
396,680
- 10,000
165,643 556,930
$ 3,472,114 $ 3,472,114
1161
Exhibit 4
(Continued)
Open Space Land Purchase
Debt Service Allocation
General Fund Admin Allocation
General Fund Admin Allocation
Replacement Reserve
Debt Service Allocation
- This page intentionally left blank -
IB3:
III. STATISTICAL SECTION
This part of the City of Andover's comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the City's overall financial health.
Contents
Page
Financial Trends 134
These tables contain trend information to help the reader understand how the City's financial performance
and well -being have changed over time.
Revenue Capacity 139
These tables contain information to help the reader assess the City's most significant local revenue
source, the property tax.
Debt Capacity 145
These tables present information to help the reader assess the affordability of the City's current levels of
outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 150
These tables offer demographic and economic indicators to help the reader understand the environment
within which the City of Andover's financial activities take place.
Operating Information 152
These tables contain service and infrastructure data to help the reader understand how the information in
the City's financial report relates to the services the City provides and the activities it performs.
133
CITY OF ANDOVER, MINNESOTA
NET ASSETS BY COMPONENT
Last Five Fiscal Years
(accrual basis of accounting)
Table 1
Business -Type Activities
Invested in capital assets, net of related debt 35,588,013 38,419,302 38,580,630 37,606,052 36,939,962
Unrestricted 3,032,746 3,281,875 3,659,887 4,005,471 4,875,384
Total business -type activities net assets 38,620,759 41,701,177 42,240,517 41,611,523 41,815,346
Primary Government
Invested in capital assets, net of related debt
2005
2006
2007
2008
2009
Governmental Activities
7,315,419
5,441,376
7,763,716
8,345,185
8,252,691
Invested in capital assets, net of related debt
$ 68,411,598
$ 74,858,759
$ 77,285,905
$ 79,644,769
$ 83,394,872
Restricted
7,315,419
5,441,376
7,763,716
8,345,185
8,252,691
Unrestricted
18,230,563
18,461,454
21,294,876
19,904,063
19,442,008
Total governmental activities net assets
93,957,580
98,761,589
106,344,497
107,894,017
111,089,571
Business -Type Activities
Invested in capital assets, net of related debt 35,588,013 38,419,302 38,580,630 37,606,052 36,939,962
Unrestricted 3,032,746 3,281,875 3,659,887 4,005,471 4,875,384
Total business -type activities net assets 38,620,759 41,701,177 42,240,517 41,611,523 41,815,346
Primary Government
Invested in capital assets, net of related debt
103,999,611
113,278,061
115,866,535
117,250,821
120,334,834
Restricted
7,315,419
5,441,376
7,763,716
8,345,185
8,252,691
Unrestricted
21,263,309
21,743,329
24,954,763
23,909,534
24,317,392
Total primary government net assets
$ 132,578,339
$ 140,462,766
$ 148,585,014
$ 149,505,540
$ 152,904,917
Note: The City began to report accrual information when it implemented GASB 34 in 2002
134
CITY OF ANDOVER, MINNESOTA
CHANGES IN NET ASSETS
Last Five Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Recycling
Economic development
Interest on long -term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Storm sewer
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Public works
Parks and recreation
Recycling
Economic development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenue
Business -type activities:
Charges for services:
Water
Sewer
Storm sewer
Capital grants and contributions
Total business -type activities program revenue
Total primary government program revenues
Net (Expense) /Revenue
Governmental activities
Business -type activities
Total primary government net expense
Table 2
$ 2,432,433
$ 2,637,584
$ 2,509,011
$ 2,505,105
$ 2,413,916
3,353,798
3,443,285
3,851,086
4,035,884
4,237,401
3,937,423
3,031,459
3,783,509
5,144,197
3,776,367
1,575,582
2,442,305
2,954,753
2,963,218
2,880,595
118,599
91,378
94,929
85,397
86,949
459,635
626,103
2,265,605
540,285
481,632
1,797,469
1,668,444
2,303,567
2,219,130
2,146,960
13,674,939
13,940,558
17,762,460
17,493,216
16,023,820
2,160,502
2,232,144
2,587,847
2,563,781
2,594,713
1,555,010
1,585,548
1,631,224
1,794,891
1,831,505
400,114
408,003
537,151
521,975
536,619
4,115,626
4,225,695
4,756,222
4,880,647
4,962,837
17,790,565
18,166,253
22,518,682
22,373,863
20,986,657
709,538
471,573
785,600
647,081
483,639
1,001,912
804,447
662,299
721,289
412,113
379,890
325,672
408,656
427,043
316,451
461,679
749,407
859,531
1,049,032
1,495,779
32,810
35,379
33,158
35,897
29,479
-
218,605
182,535
199,840
185,539
2,535,140
959,286
1,129,099
917,618
966,635
3,934,686
4,920,694
8,794,164
1,069,607
1,631,929
9,055,655
8,485,063
12,855,042
5,067,407
5,521,564
1,510,119
1,768,388
2,025,452
1,987,432
2,127,676
1,550,745
1,691,728
1,771,670
1,869,327
1,967,997
248,753
287,397
288,372
297,125
325,392
823,797
2,761,282
158,113
142,133
793,589
4,133,414
6,508,795
4,243,607
4,296,017
5,214,654
13,189,069
14,993,858
17,098,649
9,363,424
10,736,218
(4,619,284)
(5,455,495)
(4,907,418)
(12,425,809)
(10,502,256)
17,788
2,283,100
(512,615)
(584,630)
251,817
$ (4,601,496)
$ (3,172,395)
$ (5,420,033)
$ (13,010,439)
$ (10,250,439)
11617
CITY OF ANDOVER, MINNESOTA
CHANGES IN NET ASSETS
Last Five Fiscal Years
(accrual basis of accounting)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
General property taxes
Tax increment collections
Unrestricted grants and contributions
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total business -type activities
Total primary government
Change in Net Assets
Table 2
(Continued)
$ 7,066,852
$ 8,084,559
$ 8,897,755
$ 9,752,701
$ 10,175,519
1,285,195
1,562,131
1,661,204
1,783,270
1,930,669
86,906
77,642
486,626
274,402
131,084
690,648
1,019,304
1,967,583
1,514,012
1,032,507
251,504
219,910
191,735
234,070
6,144
(438,426)
(704,042)
(714,577)
416,874
421,887
8,942,679
10,259,504
12,490,326
13,975,329
13,697,810
47,620
87,376
337,378
372,510
373,893
-
5,900
-
-
-
438,426
704,042
714,577
(416,874)
(421,887)
486,046
797,318
1,051,955
(44,364)
(47,994)
9,428,725
11,056,822
13,542,281
13,930,965
13,649,816
Governmental activities 4,323,395 4,804,009 7,582,908 1,549,520 3,195,554
Business -type activities 503,834 3,080,418 539,340 (628,994) 203,823
Total primary government $ 4,827,229 $ 7,884,427 $ 8,122,248 $ 920,526 $ 3,399,377
Note: The City began to report accrual information when it implemented GASB 34 in 2002.
`g %1
CITY OF ANDOVER, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Five Fiscal Years
(modified accrual basis of accounting)
Table 3
I 16
2005
2006
2007
2008
2009
General Fund
Reserved
$ 126,320
$ 144,496
$ 208,216
$ 193,805
$ 207,515
Unreserved
3,076,157
3,248,317
3,682,244
3,981,230
4,120,897
Total general fund
3,202,477
3,392,813
3,890,460
4,175,035
4,328,412
All Other Governmental Funds
Reserved for:
Special revenue funds
58,570
46,849
12,457
17,206
23,696
Debt service funds
1,872,599
11,342,527 (1)
21,359,062 (2)
20,132,603
20,305,482
Capital project funds
1,335,858
633,078
735,141
604,494
427,017
Unreserved reported in:
Designated:
Special revenue funds
1,262,882
1,569,792
1,685,045
1,540,720
1,691,625
Capital project funds
15,018,317
14,433,934
12,011,083
13,483,426
14,839,789
Undesignated:
Special revenue funds
1,487
(323,404)
(480,592)
(599,461)
(458,423)
Capital project funds
(491,849)
(54,174)
(55,945)
(67,297)
(669,523)
Total all other governmental funds
19,057,864
27,648,602
35,266,251
35,111,691
36,159,663
Total governmental funds
$ 22,260,341
$ 31,041,415
$ 39,156,711
$ 39,286,726
$ 40,488,075
Note: In 2006, the EDA issued $10,000,000 of Public Facility Lease Revenue Refunding Bonds to refund a portion
of the 2004 FDA's
$19,580,000 Public Facility Lease Revenue Bonds, Series 2004.
(2) In 2007, the EDA issued $6,865,000 of Public Facility Lease Revenue Refunding Bonds
to refund a portion of the 2004 FDA's
$19,580,000 Public Facility Lease Revenue Bonds, Series 2004.
I 16
CITY OF ANDOVER, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Five Fiscal Years
(modified accrual basis of accounting)
Table 4
Expenditures
2005
2006
2007
2008
2009
Revenues
2,349,965
2,343,332
2,399,297
2,366,574
2,242,662
General property taxes
$ 7,033,613
$ 8,057,592
$ 8,833,249
$ 9,695,103
$ 10,168,143
Tax increment collections
1,285,639
1,546,394
1,659,222
1,762,119
1,951,343
Licenses and permits
724,436
598,094
475,893
525,339
291,903
Intergovernmental
2,663,683
2,661,726
1,644,914
1,175,205
1,654,614
Special assessments
2,045,969
1,289,590
3,342,039
1,638,006
1,421,591
Charges for services
1,692,316
1,770,156
2,035,735
1,724,052
1,579,659
Fines
90,530
91,490
101,445
104,930
110,779
Investment income
684,173
1,014,801
1,962,379
1,508,265
1,029,683
Miscellaneous:
8,487,000
5,254,000
3,275,000
3,460,000
3,865,000
Park dedication fees
286,316
626,567
113,013
133,585
41,216
Connection charges
1,311,426
372,133
829,624
254,903
20,119
Other
578,389
395,789
621,798
800,857
1,018,853
Total revenues
18,396,490
18,424,332
21,619,311
19,322,364
19,287,903
Expenditures
224,000
522,000
578,925
580,343
587,530
General government
2,349,965
2,343,332
2,399,297
2,366,574
2,242,662
Public safety
3,093,298
3,268,236
3,580,240
3,796,965
4,015,410
Public works
3,650,351
2,817,475
3,491,353
4,843,288
3,545,132
Parks and recreation
1,309,987
1,599,885
1,825,706
1,953,822
1,891,125
Recycling
116,506
90,590
94,669
86,631
85,527
Economic development
426,708
626,103
2,265,605
538,293
477,648
Unallocated
9,798
8,454
6,915
17,999
19,540
Capital outlay
1,616,709
987,075
2,803,485
1,460,662
1,519,944
Debt service:
Principal
8,487,000
5,254,000
3,275,000
3,460,000
3,865,000
Interest
2,042,003
1,683,599
2,089,857
2,253,223
2,178,233
Other
13,226
253,134
167,187
15,645
39,265
Construction /acquisition costs
11,146,387
4,579,910
360,742
-
-
Total expenditures
34,261,938
23,511,793
22,360,056
20,793,102
19,879,486
Revenues over (under) expenditures
(15,865,448)
(5,087,461)
(740,745)
(1,470,738)
(591,583)
Other Financing Sources (Uses)
Transfers in
224,000
522,000
578,925
580,343
587,530
Transfers out
-
(167,424)
(57,671)
(163,469)
(165,643)
Bonds issued
4,210,000
2,910,000
760,000
630,000
385,000
Refunding bonds issued
-
10,000,000
6,865,000
-
955,000
Bond premium
-
3,401
18,781
Bond discount
(28,961)
-
-
-
-
Proceeds from the sale of capital assets
219,887
603,959
706,386
553,879
12,264
Total other financing sources (uses)
4,624,926
13,868,535
8,856,041
1,600,753
1,792,932
Net increase (decrease) in fund balances
$ (11,240,522)
$ 8,781,074
$ 8,115,296
$ 130,015
$ 1,201,349
Debt service as a percentage of
noncapital expenditures
49.04% 40.07% 28.82% 29.63% 33.13%
138
CITY OF ANDOVER, MINNESOTA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Source: Anoka County Property Tax Division
IIM
Table 5
Net Tax Capacity
as a Percentage
1.37%
1.38%
1.01%
0.94%
0.99%
1.00%
1.01%
1.02%
1.02%
1.03%
Real Property
Personal Property
Total
Total
Taxable
Net Tax
Taxable
Net Tax
Taxable
Net Tax
Direct
Year
Market Value
Capacity
Market Value
Capacity
Market Value
Capacity
Tax
Rate
2000
$ 1,171,553,600
$ 15,690,055
$ 18,139,600
$ 615,830
$ 1,189,693,200
$ 16,305,885
22.735%
2001
1,354,146,000
18,348,662
18,285,500
620,797
1,372,431,500
18,969,459
22.736%
2002
1,539,835,500
15,336,075
17,999,800
359,540
1,557,835,300
15,695,615
33.511%
2003
1,886,169,900
17,549,064
20,202,300
402,840
1,906,372,200
17,951,904
33.376%
2004
2,059,947,400
20,142,088
20,761,100
414,016
2,080,708,500
20,556,104
31.584%
2005
2,321,605,300
23,027,376
21,718,900
433,669
2,343,324,200
23,461,045
31.414%
2006
2,603,704,500
26,204,279
22,003,500
439,356
2,625,708,000
26,643,635
31.556%
2007
2,800,462,600
28,897,916
21,998,500
439,246
2,875,150,800
29,337,162
31.003%
2008
2,969,639,300
30,749,076
20,837,800
416,000
3,046,838,900
31,165,076
31.276%
2009
2,982,595,600
31,023,349
21,185,200
422,931
3,055,274,000
31,446,280
32.181%
Source: Anoka County Property Tax Division
IIM
Table 5
Net Tax Capacity
as a Percentage
1.37%
1.38%
1.01%
0.94%
0.99%
1.00%
1.01%
1.02%
1.02%
1.03%
CITY OF ANDOVER, MINNESOTA
PROPERTY TAX RATES - PER $1,000 OF ASSESSED TAX CAPACITY VALUE
DIRECT AND OVERLAPPING GOVERNMENTS
Years 2001 through 2010
Taxes
Payable
Direct
City (1)
2001
22.736%
2002
33.511%
2003
33.376%
2004
31.584%
2005
31.414%
2006
31.556%
2007
31.003%
2008
31.414%
2009
32.049%
2010
36.381%
Table 6
Source: Anoka County Property Tax Division
Note: (1) Includes the Lower Rum River Watershed
1011
Overlapping
Governments
School
County
Other
Total
Total
50.230%
28.859%
2.850%
81.939%
104.675%
29.070%
37.976%
3.745%
70.791%
104.302%
27.802%
37.714%
3.755%
69.271%
102.647%
21.218%
35.340%
3.482%
60.040%
91.624%
21.492%
33.080%
4.021%
58.593%
90.007%
20.046%
32.096%
3.755%
55.897%
87.453%
19.337%
30.675%
3.671%
53.683%
84.686%
16.962%
31.041%
4.604%
52.607%
84.021%
18.247%
32.051%
3.251%
53.549%
85.598%
20.236%
35.273%
3.436%
58.945%
95.326%
Source: Anoka County Property Tax Division
Note: (1) Includes the Lower Rum River Watershed
1011
CITY OF ANDOVER, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Five Fiscal Years
Table 7
* Included in the total tax levy is approximately $400,000 of market value homestead credit (MVHC) that the City will not be receiving. Due to State legislative
actions to deal with the State budget deficit, the MVHC program was significantly reduced for the City.
ICS
Collected Within the Fiscal Year of Levy
Total
Market Value
Collections In
Total Collections to Date
Tax
Tax
Homestead
Total
Percentage
Subsequent
Percentage
Year
Levy
Levy
Credit
Collected
of Levy
Years
Amount
of Levy
2005
$ 7,556,813
$ 6,973,305
$ 13,179
$ 6,986,484
92.45%
$ 79,400
$ 7,065,884
93.50%
2006
8,550,919
7,977,278
1,700
7,978,978
93.31%
79,450
8,058,428
94.24%
2007
9,316,427
8,738,606
410,519
9,149,125
98.20%
110,593
9,259,718
99.39%
2008
10,153,718
9,554,131
198,214
9,752,345
96.05%
137,071
9,889,416
97.40%
2009
10,593,520
9,992,240
54,629 *
10,046,869
94.84%
Not Available
* Included in the total tax levy is approximately $400,000 of market value homestead credit (MVHC) that the City will not be receiving. Due to State legislative
actions to deal with the State budget deficit, the MVHC program was significantly reduced for the City.
ICS
CITY OF ANDOVER, MINNESOTA
PRINCIPAL TAXPAYERS
Current Year and Ten Years Ago
2009 2000
Total $ 1,481,439 4.71%
Net Tax Capacity $ 31,446,280
Source: Anoka County Property Tax Division
IEVI
Net
Tax
Capacity Rank
$ 336,620
242,736
129,907
80,524
63,226
42,433
42,013
35,213
39,147
53,156
$ 1,064,975
$ 16,305,885
1
2
3
4
5
7
8
9
10
6
Table 8
Percentage of
Total City
Tax Capacity
1.96%
1.41%
0.75%
0.47%
0.37%
0.25%
0.24%
0.20%
0.23%
0.31%
6.19%
Net
Percentage of
Tax
Total City
Taxpayers
Capacity
Rank
Tax Capacity
Connexus Energy
$ 226,488
1
0.72%
Target Corporation
221,656
2
0.70%
Andover Limited Partnership
169,706
3
0.54%
Presbyterian Homes of Andover
164,899
4
0.52%
116 LLC
141,966
5
0.45%
Minnegasco, Inc.
137,886
6
0.44%
Andover Station LLC
109,680
7
0.35%
BDT Holdings LLC
109,416
8
0.35%
Grey Oaks Inc.
100,798
9
0.32%
Great River Energy
98,944
10
0.31%
Individual - CommerciaFlndustrial
-
Columbia Park Properties
Minnesota Pipe Line Company
Health Partners
Povlitzki Properties
MN Interstate Pipeline
Northern States Power
Total $ 1,481,439 4.71%
Net Tax Capacity $ 31,446,280
Source: Anoka County Property Tax Division
IEVI
Net
Tax
Capacity Rank
$ 336,620
242,736
129,907
80,524
63,226
42,433
42,013
35,213
39,147
53,156
$ 1,064,975
$ 16,305,885
1
2
3
4
5
7
8
9
10
6
Table 8
Percentage of
Total City
Tax Capacity
1.96%
1.41%
0.75%
0.47%
0.37%
0.25%
0.24%
0.20%
0.23%
0.31%
6.19%
CITY OF ANDOVER, MINNESOTA
ESTIMATED MARKET VALUES AND NEW CONSTRUCTION
Last Ten Fiscal Years
New Construction
Commercial / Industrial Residential
Permits
Value
Estimated Market Values
$ 12,672,448
8
Commercial /
19
10,616,851
Year
Industrial (1)
Residential
Total
2000
$ 82,616,300
$ 1,107,076,900
$ 1,189,693,200
2001
95,215,200
1,277,216,300
1,3 72,431,500
2002
107,671,600
1,450,163,700
1,557,835,300
2003
127, 728, 400
1,778,643,800
1,906,372,200
2004
144,629,100
1,936,079,400
2,080,708,500
2005
168,684,200
2,174,640,000
2,343,324,200
2006
191,931,800
2,433,776,200
2,625,708,000
2007
211,760,900
2,663,389,900
2,875,150,800
2008
233,801,700
2,813,037,200
3,046,838,900
2009
248,129,500
2,807,144,500
3,055,274,000
New Construction
Commercial / Industrial Residential
Permits
Value
14
$ 12,672,448
8
21,086,481
19
10,616,851
13
4,764,046
16
19,926,817
20
6,571,671
8
1,791,896
9
2,403,831
11
16,878,603
11
767,430
Note: (1) Also includes agricultural, public utility, railroad operating property, and personal property.
143
Table 9
Permits
Value
342
$ 46,322,000
285
43,378,128
218
31,848,000
182
28,973,300
251
36,224,546
226
34,309,393
153
25,236,120
91
18,347,873
49
11,116,400
47
9,246,347
CITY OF ANDOVER, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Note: (1) Only includes assessments certified to Anoka County.
144
Table 10
Current
Current
Percent of
Delinquent
Collections
Assessments
Assessments
Assessments
Assessment
Year
Due (1)
Collected
Collected
Collections
Current
Collections
Assessments Due
2000
$ 433,242
$ 424,854
98.06%
$ 36,374
2001
432,207
410,380
94.95%
5,933
2002
328,831
307,051
93.38%
5,694
2003
533,340
522,851
98.03%
5,917
2004
192,373
189,279
98.39%
7,921
2005
178,434
175,471
98.34%
4,002
2006
225,365
192,477
85.41%
4,790
2007
163,817
142,750
87.14%
12,460
2008
366,203
330,304
90.20%
1,479
2009
319,448
332,739
104.16%
36,693
Note: (1) Only includes assessments certified to Anoka County.
144
Table 10
Total
Delinquent
Collections
Assessments
Total
as a Percent of
Outstanding
as a Percent of
Assessment
Current
Delinquent
Current
Collections
Assessments Due
Assessments
Assessments Due
$ 461,228
106.46%
$ 15,871
3.66%
416,313
96.32%
26,264
6.08%
312,745
95.11%
37,404
11.37%
528,768
99.14%
49,329
9.25%
197,200
102.51%
15,157
7.88%
179,473
100.58%
22,217
12.45%
197,267
87.53%
51,721
22.95%
155,210
94.75%
76,420
46.65%
331,783
90.60%
174,810
47.74%
369,432
115.65%
202,999
63.55%
CITY OF ANDOVER, MINNESOTA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
Table 11
Percentage
Net Bonded
of Estimated
General Bonded Debt Outstanding
(2)
Per Capita
0.27%
$ 121.56
Gross
Less Debt
Net
Fiscal
0.19%
Taxable
Bonded
Service
Bonded
Year
Population (1)
Market Value
Debt
Fund
Debt
2000
26,588
$ 1,189,693,200
$ 3,280,000
$ (48,001) $
3,231,999
2001
27,446
1,372,431,500
4,210,000
(94,728)
4,115,272
2002
28,664
1,557,835,300
3,680,000
(112,848)
3,567,152
2003
28,939
1,906,372,200
3,710,000
(88,875)
3,621,125
2004
29,262
2,080,708,500
24,236,000
(815,322)
23,420,678
2005
30,080
2,343,324,500
24,389,000
(1,041,140)
23,347,860
2006
30,222
2,625,708,000
33,850,000
(10,739,510)
23,110,490
2007
30,263
2,875,150,800
40,880,000
(17,822,418)
23,057,582
2008
31,023
3,046,838,900
40,565,000
(17,939,959)
22,625,041
2009
31,250
3,055,274,000
39,690,000
(17,973,588)
21,716,412
Table 11
Percentage
Net Bonded
of Estimated
Debt
Market Value
Per Capita
0.27%
$ 121.56
0.30%
149.94
0.23%
124.45
0.19%
125.13
1.13%
800.38
1.00%
776.19
0.88%
764.69
0.80%
761.91
0.74%
729.30
0.71%
694.93
Notes: (1) Source: Metropolitan Council
(2) Only includes debt supported by tax levy.
* 2004 is the start of the 2004 EDA Public Facility Revenue Bonds of which approximately half of the annual debt service payments
will come from a lease with the YMCA.
IEN
CITY OF ANDOVER, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2009
Table 12
Notes: (1) Only includes debt supported by tax levy.
(2) Information obtained from Anoka County.
M11
Gross General
Obligation
Percentage
Net Amount
Bonded Debt
Applicable
Applicable
Outstanding
to City
to City
Direct:
City of Andover
$ 39,690,000
(1)
100.0000%
$ 39,690,000
Overlapping:
Anoka County
136,775,000
(2)
8.9805%
12,283,147
ISD No. 11 Anoka - Hennepin
124,306,689
(2)
12.8285%
15,946,682
ISD No. 15 St. Francis
43,265,000
(2)
6.9699%
3,015,507
Metropolitan Council
157,950,000
(2)
0.8867%
1,400,471
Total Overlapping Debt
32,645,807
Total Overlapping and Direct Debt
$ 72,335,807
Notes: (1) Only includes debt supported by tax levy.
(2) Information obtained from Anoka County.
M11
CITY OF ANDOVER, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN Table 13
Last Five Fiscal Years
2005 2006 2007 2008 2009
Estimated Taxable Market Value
$ 2,244,286,800
$ 2,543,591,200
$ 2,800,462,600
$ 2,969,639,300
$ 2,982,595,600
Debt limitation:
Debt limit percent
2%
2%
2%
3%
3%
Debt limit in dollars
44,885,736
50,871,824
56,009,252
89,089,179
89,477,868
Debt applicable to limit:
Total bonded debt
52,344,000
59,665,000
70,240,000
67,050,000
65,175,000
Less: Nonapplicable debt
G.O. water revenue bonds
(9,150,000)
(8,815,000)
(15,040,000)
(14,680,000)
(15,330,000)
Special assessment bonds
(3,560,000)
(3,560,000)
(3,560,000)
(3,015,000)
(2,450,000)
Tax increment bonds
(7,065,000)
(4,715,000)
(4,010,000)
(3,275,000)
(2,515,000)
Permanent improvement
revolving bonds
(5,975,000)
(6,660,000)
(4,835,000)
(3,755,000)
(2,635,000)
State aid bonds
(2,205,000)
(2,065,000)
(1,915,000)
(1,760,000)
(2,555,000)
Less: Cash and investments in
related debt service funds
(1,041,140)
(10,739,510)
(17,822,418)
(17,939,959)
(17,973,588)
Total debt applicable to limitation
23,347,860
23,110,490
23,057,582
22,625,041
21,716,412
Legal debt margin
$ 21,537,876
$ 27,761,334
$ 32,951,670
$ 66,464,138
$ 67,761,456
Total debt applicable to the limit as
a percentage of debt limit
52.02%
45.43%
41.17%
25.40%
24.27%
fCfl
CITY OF ANDOVER, MINNESOTA
PLEDGED - REVENUE COVERAGE
Last Five Fiscal Years
Table 14
Water Revenue Bonds
Water Enterprise Fund
Less: Net
Fiscal
Operating Operating Transfers Available Debt Service
Year
Revenues Expenses (1) In (2) Revenue Principal Interest
Coverage
2005
$ 1,510,119 $ 1,111,874 $ - $ 398,245 $ 320,000 $ 421,393
0.54
2006
1,768,388 1,139,500 167,474 796,362 335,000 411,720
1.07
2007
2,025,452 1,264,370 57,671 818,753 345,000 395,775
1.11
2008
1,987,432 1,218,444 163,469 932,457 360,000 382,753
1.26
2009
2,127,676 1,264,398 165,643 1,028,921 375,000 393,828
1.34
2004 EDA Public Facility Lease Revenue Bonds (3)
Community Center Special Revenue Fund Debt Service
Less: Net General
Fiscal
Operating Operating Available Property Tax Debt Service
Year
Revenue Expenses Revenue Revenue Principal Interest
Coverage
2005
$ 522,839 $ 589,900 $ (67,061) $ 748,376 $ - $ 1,194,167
0.57
2006
741,241 748,146 (6,905) 800,349 185,000 964,102
0.69
2007
876,136 799,909 76,227 844,123 185,000 959,731
0.80
2008
998,287 900,228 98,059 890,709 190,000 954,381
0.86
2009
1,422,614 903,446 519,168 940,640 390,000 944,806
1.09
Special Assessment and Permanent Improvement Revolving Bonds
Special
Fiscal
Assessment Debt Service
Year
Revenue Principal Interest Coverage
2005
$ 1,321,019 $ 1,705,000 $ 192,153 0.70
2006
786,918 1,765,000 289,174 0.38
2007
2,966,380 1,825,000 314,152 1.39
2008
1,184,928 1,625,000 243,340 0.63
2009
993,703 1,685,000 198,232 0.53
Tax Increment Financing Bonds
Tax
Fiscal
Increment Debt Service
Year
Revenue Principal (4) Interest Coverage
2005
$ 1,160,190 $ 1,975,000 $ 419,220 0.48
2006
1,414,254 2,350,000 193,045 0.56
2007
1,474,219 705,000 120,545 1.79
2008
1,614,651 (5) 735,000 105,033 1.92
2009
1,790,279 760,000 87,620 2.11
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Operating expenses includes transfers out because the administrative allocation and replacement reserve transfer
is built into the user fees. Operating expenses does not include interest and depreciation.
(2) The transfer in is included because a portion of the trunk connection charge associated with adding additional users to the water
system is designated to compensate prior years capital investment in water utility infrastructure and the treatment plant.
(3) Half of the facility financed by these bonds is leased to the Greater Minneapolis YMCA, their lease payments started
in 2008. Future YMCA lease payments will significantly reduce the City's obligation on debt service payments.
(4) Net of crossover refundings.
(5) Starting in 2008, all tax increment revenues will now be receipted in the Tax Increment Projects Capital Projects Fund and
transferred over as needed to make the debt service payments. In 2009, the debt service fund had sufficient funds to make
its debt service payment.
148
CITY OF ANDOVER, MINNESOTA
OUTSTANDING DEBT BY TYPE
Last Five Fiscal Years
City of Andover's Outstanding Debt
Governmental activities
G.O. revenue bonds
Special assessment bonds
Tax increment bonds
Certificates of indebtedness
Capital improvement bonds
Permanent improvement
revolving bonds
State aid bonds
Compensated absences
Total governmental activities
Business -type activities
G.O. revenue bonds
Compensated absences
Total business -type activities
Total outstanding debt
Total outstanding debt as a
percentage of personal income
Total outstanding debt per capita
Table 15
2005 2006 2007 2008 2009
$ 19,580,000
$ 29,395,000
$ 36,075,000
$ 35,885,000
$ 35,495,000
3,560,000
3,560,000
3,560,000
3,015,000
2,450,000
7,065,000
4,715,000
4,010,000
3,275,000
2,515,000
699,000
580,000
1,280,000
1,525,000
1,420,000
4,110,000
3,875,000
3,525,000
3,155,000
2,775,000
5,975,000
6,660,000
4,835,000
3,755,000
2,635,000
2,205,000
2,065,000
1,915,000
1,760,000
2,555,000
410,402
459,299
509,851
504,893
541,606
43,604,402
51,309,299
55,709,851
52,874,893
50,386,606
9,150,000
8,815,000
15,040,000
14,680,000
15,330,000
66,816
74,675
90,228
107,333
120,546
9,216,816
8,889,675
15,130,228
14,787,333
15,450,546
$ 52,821,218
$ 60,198,974
$ 70,840,079
$ 67,662,226
$ 65,837,152
6.41%
7.06%
8.05%
7.69%
7.19%
$ 1,756
$ 1,992
$ 2,341
$ 2,181
$ 2,107
IElN
CITY OF ANDOVER, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Five Years
Table 16
Notes: (1) Estimates from Metropolitan Council
(2) The personal income is calculated by taking the per capita income of Anoka County and multiplying it
by the population for both the City and County.
(3) Information from U.S. Census Bureau
W11
City
of Andover
Anoka County
Personal
Personal
Per Capita
Unemployment
Year
Population
Income (2)
Population (3)
Income (2)
Income (3)
Percentage
2005
30,080
$ 824,041,600
320,803
$ 8,788,398,185
$ 27,395
3.8%
2006
30,222
852,769,641
327,005
9,227,051,034
28,217
3.9%
2007
30,263
879,544,327
326,252
9,481,977,859
29,063
4.5%
2008
31,023
880,029,441
327,090
9,278,562,030
28,367
6.9%
2009
31,250
(1) 915,968,750
332,751
9,753,264,561
29,311
6.9%
Notes: (1) Estimates from Metropolitan Council
(2) The personal income is calculated by taking the per capita income of Anoka County and multiplying it
by the population for both the City and County.
(3) Information from U.S. Census Bureau
W11
CITY OF ANDOVER, MINNESOTA
PRINCIPAL EMPLOYERS
Table 17
Current Year and Ten Years Ago
2009
2000
Percentage
Percentage
of Total City
of Total City
Taxpayer
Employees
Rank
Employment
Employees
Rank
Employment
Anoka Hennepin I.S.D. No. 11
574
1
31.9%
308
1
26.2%
Bunker Hills Regional Park/Activity Center
237
2
13.2%
-
-
Kottkes' Bus Service, Inc.
200 (L)
3
11.1%
170
3
14.4%
Target
167
4
9.3%
-
-
Anoka County Highway Department
141
5
7.8%
100
4
8.5%
Columbia Park Medical Group - Andover
107
6
5.9%
-
-
Meadow Creek Christian School
100
7
5.5%
81
6
6.9%
Festival Foods
97
8
5.4%
180
2
15.3%
Farmstead at Andover
94
9
5.2%
-
-
City of Andover
85
10
4.7%
58
8
4.9%
McDonald's
-
80
7
6.8%
Ace Solid Waste, Inc.
50
9
4.2%
Ed Fields & Sons, Inc.
100
4
8.5%
Riccar Heating & Air Conditioning
-
-
50
9
4.2%
Total
1,802
100.0%
1,177
100.0%
Source: Minnesota Department of Employment and Economic Development
(1) Number of employees as of March, 2006
I&I
CITY OF ANDOVER, MINNESOTA
FULL TIME EQUIVALENT EMPLOYEES
Table 18
CITY GOVERNMENT EMPLOYEES BY FUNCTION
/PROGRAM
Last Five Fiscal Years
Function/Program
2005
2006
2007
2008
2009
Governmental:
Administration
1.47
1.30
1.45
1.15
1.15
Human resources
0.06
0.07
0.02
0.01
0.02
City clerk
1.84
1.84
1.91
1.43
1.29
Elections
0.10
0.10
0.10
0.08
0.10
Financial administration
2.99
2.85
2.35
1.97
1.85
Information systems
0.91
0.91
0.91
0.91
0.91
Planning and zoning
4.57
4.75
4.75
4.25
3.70
Engineering
4.67
4.57
4.78
4.41
4.28
Facility Management
-
-
-
-
0.33
EDA general
1.21
0.70
0.70
0.85
0.90
LRRWMO
0.21
0.21
0.21
0.21
0.20
Risk management
0.13
0.10
0.10
0.10
0.10
Public Safety:
Fire
3.25
3.10
3.10
3.10
3.10
Protective inspection
5.58
6.03
6.08
5.78
3.93
Civil defense
0.05
0.05
0.05
0.05
0.05
Public Works:
Streets and highways
5.35
6.12
6.20
6.00
5.05
Snow and ice
3.92
3.27
3.49
3.21
2.45
Street signs
1.20
1.35
1.44
1.41
1.31
Forestry
0.10
0.10
-
-
-
ROW management / utility
0.85
0.85
0.60
0.65
0.50
Water
5.04
5.57
4.78
4.84
4.63
Sewer
3.15
2.97
3.18
3.24
3.38
Storm sewer
1.60
2.01
1.95
2.20
2.55
Central equipment
2.91
2.92
2.96
2.96
2.87
Park & Recreation:
Park and recreation
6.85
7.33
7.05
6.85
6.66
Community center
2.10
2.12
2.12
2.23
2.96
Recycling
1.26
0.93
0.88
0.86
1.23
61.37
62.12
61.16
58.75
55.50
Source: City Finance Department
Note: Employees are allocated to various departments based on the functions that they perform.
I&Y,
CITY OF ANDOVER, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Five Years
Table 19
Function/Program
2005
2006
2007
2008
2009
General government:
Registered voters
n/a
16,813
n/a
17,830
n/a
Voters registering election day
n/a
2,200
n/a
2,727
n/a
Number of precincts
n/a
10
n/a
10
n/a
Public safety:
Police:
Number of calls for services
12,861
11,516
12,150
11,617
11,075
Number of traffic citations
1,795
1,673
1,710
2,475
2,848
Number of patrol hours
30,856
30,856
30,240
30,240
30,240
Fire:
Fire responses
325
443
366
326
305
Emergency medical responses
594
645
736
797
754
Protective inspections:
Inspections
6,536
8,128
5,456
5,020
3,716
Residential permits
226
153
91
49
42
Other permits
2,473
2,481
2,095
1,862
1,543
Public works:
Streets and highways:
Asphalt streets maintained (miles)
178
187
189
189
189
Gravel roads maintained (miles)
8
8
8
8
8
Cul -de -sacs and dead ends maintained
320
329
330
336
338
Parks and recreation:
Number of City parks
58
63
65
66
66
Total acreage mowed
265
200
297
297
293
Ballfields maintained
25
24
27
28
28
Number of playgrounds
33
35
37
37
37
Soccer fields maintained
20
16
16
19
19
Trail maintained (miles)
26
23
35
35
35
Community center bookings (hrs):
Fieldhouse
1,405
7,450
8,514
8,282
9,718
Ice arena
2,002
2,405
2,497
2,393
2,640
Water:
New connections
247
197
63
33
145
Total customers
5,657
5,854
5,917
5,950
6,095
Annual consumption
(thousands of gallons)
856,671
1,014,251
1,046,789
993,626
1,000,971
Sanitary Sewer:
New connections
229
129
120
23
183
Total customers
6,528
6,657
6,777
6,800
6,983
Storm Sewer:
Total customers
9,516
9,744
9,785
9,800
9,950
Storm sewer lines maintained (miles)
43
51
65
66
69
Source: Various City Departments
153
CITY OF ANDOVER, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Five Years
Table 20
Function/Program
2005
2006
2007
2008
2009
Public Safety:
Fire:
Stations
3
3
3
3
3
Fire vehicles
18
18
20
20
21
Protective inspections:
Vehicles
3
3
3
3
3
Public Works:
Streets and Highways:
Streets (miles)
186
187
189
189
189
Street lights
1,105
1,187
1,204
1,212
1,215
Traffic signals
20
22
22
23
23
Parks and Recreation:
Parks
58
63
65
66
66
Ball fields
25
24
27
28
28
Soccer fields
16
16
16
19
19
Playgrounds
33
35
37
37
37
Trails (miles)
26
23
35
35
35
Community centers
1
1
1
1
1
Water:
Water treatment plants
1
1
1
1
1
Storage facilities
3
3
3
3
3
Water main (miles)
79
107
108
108
108
Connections
5,450
5,854
5,917
5,950
6,095
Sanitary sewer:
Sewer main (miles)
82
90
91
91
91
Connections
6,250
6,657
6,777
6,800
6,983
Number of lift stations
8
9
9
9
9
Storm sewer:
Storm sewer lines (miles)
43
51
65
66
69
154