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1978 - Comp. Annual Financial Report I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA REPORT ON EXAMINATION FOR THE PERIOD JANUARY 1, 1978 THROUGH DECEMBER 31, 1978 M. J. LONG CD. I INDEX I PAGE If I Accountants' Report Part I Exhibit "A" - Combined Balance Sheet 8 I Exhibit "A-I" - Combined Statement of Revenues, Expenditures and Changes in Fund Balances 9 - 10 I Exhibit "A-2" - Combined Statement of Revenues and Expenses and Changes in Retained Earnings 11 - 12 I I Exhibit "A-3" - Combined Schedule of Indebtedness 13 Part II General Fund Exhibit "B" - Balance Sheet 15 I Exhibit "B-I" - Statement of Changes in Fund Balance 16 I Exhibit "B-2" - Statement of Revenues - Estimated and Actual 17 I Exhibit "B-3" - Statement of Expenditures - Estimated and Actual 18 - 20 Special Revenue Fund I Exhibit "c" - Federal Revenue Sharing Fund-Balance Sheet 21 I Exhibit "C-I" - Federal Revenue Sharing Fund - Statement of Revenues, Expenditures and Changes in Fund Balance 22 I I Capital Projects Fund Exhibit "D" - Park Capital Improvement Fund - Balance Sheet 23 I Exhibit "D-l" - Park Capital Improvement Fund - Statement of Revenues, Expenditures and Changes in Fund Balance 24 Special Assessment Funds I Exhibit "E" - Combining Balance Sheet 25 I Exhibit "E-l" - Combining Statement of Revenues, Expenditures and Changes in Fund Balances 26 Exhibit "E-2" - Debt Service Fund - Balance Sheet 27 I I M. J. LON G CO. I INDEX PAGE II I Part II, Continued I Special Assessment Funds (Continued) I Exhibit IE-3" - Debt Service Fund - Statement of Revenues, Expenditures and Changes in Fund Balance 28 I Exhibit "E-4" - Utility Improvement Contingency Fund - Balance Sheet 29 I Exhibit "E-5" - Utility Improvement Contingency Fund - Statement of Revenues, Expenditures and Changes in Fund Balance 30 Enterprise Funds I Exhibit "F" - Combining Balance Sheet 31 I Exhibit "F-l" - Combining Statement of Revenues, Expenses and Changes in Retained Earnings 32 - 33 I Exhibit "F-2" - Combining Statement of Changes in Financial Position 34 I Exhibit "F-3" - Liquor Fund - Balance Sheet 35 Exhibit "F-4" - Liquor Fund - Statement of Revenues, Expenses and Changes in Retained Earnings 36 I Exhibit "F-5" - Liquor Fund - Statement of Changes in Financial Position 37 I Exhibit "F-6" - Sanitary Sewer and Water Operating Fund - Balance Sheet 38 I I Exhibit "F-7" - Sanitary Sewer and Water Operating Fund - Statement of Revenues, Expenses and Changes in Retained Earnings 39 Exhibit IF-8" - Sanitary Sewer and Water Operating Fund - Statement of Changes in Financial Position 40 I Exhibit "F-9" - Metropolitan Waste Control Commission Fund - Balance Sheet 41 I Exhibit "F-10" - Metropolitan Waste Control Commission Fund - Statement of Revenues, Expenses and Changes in Retained Earnings 42 I Exhibit "F-11" - Metropolitan Waste Control Commission Fund - Statement of Changes in Financial Position 43 I I M. J. LON G CO. I I I I I I I I I I I I I I I I I I I INDEX PAGE If Part II, Contined General Fixed Asset Group of Accounts Exhibit "G" - Statement of General Fixed Assets 44 45 - 48 Notes To The Financial Statements Part III Schedule 1 - Statement of Security for Bank Deposits Pledged by Official Depository 50 51 52 Schedule 2 - Statement of City Indebtedness Schedule 3 - Schedule of Insurance Coverage In Force M. J. LON G CO. I M. J. LONG CO. I ACCOUNTANTS AND AUDITORS TONKA BUILDING - EXCELSIOR, MINNESOTA 55331 TELEPHONE (61 2) 474-8826 I ACCOUNTANTS' REPORT I I City Council City of Shorewood Shorewood, Minnesota Gentlemen: I We have examined the financial statements of the various funds and account group of the City of Shorewood for the year ended December 31, 1978. as listed in Part I and Part II in the foregoing Index. Our examination was made in accordance with generally accepted auditing standards. and accord- ingly, included such tests of the accounting records and such other audit- ing procedures as we considered necessary in the circumstances. I I I The City of Shorewood has kept its records and has prepared its financial statements for previous years on the cash basis with no recognition having been accorded accounts receivable, accounts payable. or accrued expenses. At the beginning of the current year, the City adopted the accrual basis of accounting with which we concur. Although appropriate adjustments have been made to fund balances and retained earnings as of the beginning of the year, it was not practicable to determine what adjustments would be necessary in the financial statements of the preceding year to restate results of opera- tions and changes in financial position in conformity with the accounting principles used in the current year. I I I As more fully described in Note 1 to the financial statements, (property, plant and equipment), no complete historical record exists of costs for the City's investment in property, plant and equipment, except for the Liquor Fund, because acquisitions prior to January 1, 1978 have not been recorded. Begin- ning in the year 1978, the City has recorded property, plant and equipment acquisitions in the Sanitary Sewer and Water Operating Fund and the General Fixed Asset Group of Accounts as well as the Liquor Fund, and has made provision for depreciation, with which we concur. and which conforms to generally accepted accounting principles applicable to governmental units. I I I As discussed in Note 1 to the financial statements, the City uses a modified retail method of valuing its inventories in the Liquor Fund. Because the City does not maintain sufficient detail records to support this pricing method, we were unable to verify the inventory values shown on the accompany- ing financial statements of the Liquor Fund. I I In our oplnlon, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to verify the physical inventory values, the financial statements as listed in Part I and Part II in the foregoing index present fairly the financial position of the City of Shorewood at December 31, 1978, and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accounting principles consistently applied during the period subsequent to the changes, with which we concur, made as of January 1, I I I City Council Page Two I 1978, in the method of accounting. I The accompanying supplementary data included in Part III of the afore- mentioned Index are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. This information, except for the statistical information, indicated as unaudited in Part III, has been subject to the tests and other auditing procedures applied in the examination of the financial statements mentioned above, and, in our opinion, is fairly stated in all material respects in relation to the financial state- ments taken as a whole. I I Respectfully submitted, I M. J. LONG COMPANY I I I Excelsior, Minnesota August 17, 1979 I I I I I I I I I I M. J. LON G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA REPORT ON EXAMINATION YEAR ENDED DECEMBER 31, 1978 P ART I M. J. LON G CO. I I I I I I I I I I I I I I I I I I I ASSETS Cash Investments - Certificates of Dep~osit Taxes Receivable - Delinquent Accounts Receivable Special Assessments Receivable Interest Receivable Inventories Prepaid Expenses Buildings Improvements Other Than Buildings Machinery and Equipment Accumulated Depreciation TOTAL ASSETS LIABILITIES AND FUND EQUITY Liabilities: Accounts Payable Contracts Payable Notes Payable , Accrued Liabilities Certificates of Indebtedness Special Assessment Bonds Payable Total Liabilities Fund Eq uit y : Investment in General Fixed Assets Retained Earnings: Unreserved Fund Balance Appropriated Unappropriated Total Fund Equity TOTAL LIABILITIES AND FUND EQUITY M. J. LONG CO. General 39,830 16,276 49,622 9,654 509 3,070 118.961 38,674 45,516 22,590 11,335 75,000 193,115 (74,154) (74,154) 118.961 CITY OF SHOREWOOD COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1978 Governmental Fund Types Special Capital Revenue Projects Special Assessment 120,149 963,214 2,685,367 192,187 3.960.917 32,579 4,430,000 4,462,579 (501,662) (501,662) 3.960.917 The Notes To The Financial Statements Are An Integral Part of This Statement. 11,726 15,147 368 613 12.094_ 15.760 12,094 15,760 12,094 15,760 12.094 15.760 Proprietary Fund Types Account Groups General Fixed Assets Enterprise 85,823 125,351 48,112 7,026 8,465 105,926 4,956 3,955 38,171 (24,612) 77,373 38,896 59,886 (12,509) 403.173 163.646 33,426 6,622 40,048 163,646 363,125 363,125 163,646 403.173 163.646 Part I Exhibit "A" Total December 31, 1978 272,675 1,088,565 16,276 97,734 2,702.047 202,142 105,926 8,026 77,373 42,851 98,057 (37,121) 4.674.551 72 ,100 45,516 22,590 50,536 75,000 4,430,000 4,695,742 163,646 363,125 (501,662) (46,300) (21,191) 4.674.551 -8- I I I I I REVENUES Taxes Licenses and Permits Intergovernmental Revenues Federal State County Charges for Services Fines and Forfeits Interest on Investments Interest on Special Assessments Miscellaneous Revenues I I I I TOTAL REVENUES I EXPEND LTURES Current General Government Public Safety Police Fire Protective Inspection Animal Control Streets and Highways Engineering Streets Snow and Ice Removal Street Lighting Traffic Signs, Signals and Ma: Equipment Maintenance Public Works Buildings Sanitation and Waste Removal Rubbish Pick--Up Storm Sewers Weed Control Tree Disease Control Health Recreation Parks and Playgrounds Beaches Skating Rinks Community Services I I I I I I I I I Special 13essment 65,858 L70,8l2 54,419 291,089 M Part I Exhibit "A-I" Page 1 of 2 Total Year Ended December 31, 1978 267,115 33,039 63,748 171,880 25,427 29,.719 6,734 67,090 170,812 95,009 930,573 127,486 140,344 27,465 10 ,038 1,288 24,304 19,247 10 ,294 2,868 3,849 22,657 2,824 2,810 5,676 1,826 27,349 1,533 7,303 553 11,346 4,301 -9- I I I I I I I I I I I I I I I I I I I Special ssessment EXPENDITURES (CONTINUED) Current Capital Outlay General Government Police Protection Streets and Highways Sanitation and Waste Removal Recreation Debt Service Interest 235,107 Unallocated General Expense FICA PERA Health Insurance Social Security Administratior Petty Cash General Insurance Special Assessments on City PI Miscellaneous MWCC SAC Charges Building Permit Surcharge Service Charges 480 Refunds 204 Engineering - Water Study TOTAL EXPENDITURES 235,791 NET INCREASE (DECREASE) BALANCE DURING THE YEAR 55,298 FUND BALANCE, January 1 (Cash Basis) 928,085 Adjustments To Effect Change From Ca Accounts Receivable Interest Receivable 8,671 Taxes Receivable - Delinquent Special Assessments .251,571 Accounts Payable Accrued Salaries Accrued Interest Payable (15,287) Notes Payable Contract For Deed Certificate of Indebtedness Bonds Payable ,730,000) FUND BALANCE (Deficit), January 1 (Restated on Accrual Basis) :556,960) FUND BALANCE (Deficit), December 31 '50l.~62) M Part I Exhibit "A-I" Page 2 of 2 Total Year Ended December 31, 1978 1,492 1,492 10,00iJ 45,320 9,931 38,378 242,597 6,254- 5,469 6,787 11 50 17,368 1,906 25,294 1,990 480 204 5,443 874,335 56,238 964,614 9,815 9,178 28,392 3,266,689 (24,351) (998) (16,965) (26,094) (52,215) (32,265) (4,730,000) (604,200) (54 L.5J6Z) -10- I I I I I I I I I I I I I I I I I I I Part 1 Exhibit "A_2" Page 1 of 2 CITY OF SHOREWOOD COMBINED STATEMENT OF REVENUES AND EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES For The Year Ended December 31, 1978 Proprietary Fund Types Enterprise Funds Sanitary Metropolitan Sewer & Water Waste Control Liqu~_ Operating Commission Total SALES AND COST OF SALES Sales Costof Sales 699,639 539,392 699,639 539,392 GROSS PROFIT 160,2L17 160,247 OPERATING REVENUES Charges For Services 167,102 167,102 TOTAL OPERATING REVENUES 167,102 167,102 TOTAL GROSS PROFIT AND OPERATING REVENUES 160,247 167,102 327,3!+9 OPE~~TING EXPENSES Salaries and Wages 65,146 31,619 96,765 Retirement Contribution 1,740 1,740 Health and Life Insurance Contributions 3,390 2,808 7,076 Shop Supplies 1,765 8,984 10,749 Heat, Light and Power 5,323 2,300 7,623 Depreciation 976 777 1,753 Payroll Taxes 4,792 1,912 6,704 Rent 32,786 32,786 Telephone 1,131 1,131 Insurance 9,601 3,678 12,401 Advertising 671 671 Professional Services 7,014 7,014 Bad Debts 270 270 Cash Variance 108 108 Office Expense 827 1,112 1,939 Repairs and Maintenance 724 724 Dues and Subscriptions 75 75 Laundry 326 326 Security 816 816 Rubbish Hauling 344 344 Employee Reimbursements 1,517 1,517 Electricity - Lift Stations 2,675 2,675 Contracted Services 1,705 1,705 Education 105 105 Service Charge Refunds 75 75 Postage 260 260 Small Tools 1,090 1,090 -11- M. J. LON G CO. CITY OF SHOREWOOD COMBINED STATEMENT OF REVENUES AND EXPENSES AND ClIANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES For The Year Ended December 31, 1978 Proprietary Fund Types Enterprise Funds Sanitary Metropolitan Sewer & Water Waste Control Liquor Operating Commission Total I I I I I I I I I I I I I I I I I I I OPERATING EXPENSES (CONTINUED) Sewer Use Charge Connection Fees Purchases - Water Sales Tax TOTAL OPERATING EXPENSES 137,862 OPERATING INCOME (LOSS) 22,385 OTHER REVENUES Interest on Investments Property Taxes Special Assessments Refunds TOTAL OTHER REVENUES OTHER EXPENSES Deferred Charges Metropolitan Waste Control Commission TOTAL OTHER EXPENSES NET INCOME (LOSS) TO RETAINED EARNINGS RETAINED EARNINGS, January 1 (Cash Basis) Adjustment To Effect Change Accounts Receivable Inventories Prepaid Expenses Property and Equipment Accounts Payable Accrued Liabilities RETAINED EARNINGS, January 1 (Restated on Accrual Basis) RETAINED EARNINGS, December 31 2 ,935 2,935 25,320 71,777 From Cash 4,707 97,989 3,249 3,735 (29,342) (6,272) 145,843 171.163 Part 1 Exhibit "A-2" Page 2 of 2 74,366 900 6,142 234 74,366 900 6,142 234 142,222 280,084 24,880 47,265 -- 10,489 13,424 18,713 5,498 554 18,713 5 ,498 554 15,987 38,189 19,267 6,485 6,485 20,264 20,264 26,749 26,749 40,867 (7,482) 58,705 _.......-.- 122,773 192,482 (2,068) Basis To Accrual Basis: 39,539 44,246 97,989 3,249 3,735 (31,009) (6,272) (1,667) 160,645 (2,068) 304,420 201.512 -- 363.125 ~55Q) The Notes To The Financial Statements Are An Integral Part of This Statement. -12- M. J. LON G CO. ------------------- CITY OF SHOREWOOD COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1978 Part 1 Exhibit "A-3" Principal Interest Due in Due in Authorized Issued Retired Outstanding 1979 1979 Bonded Indebtedness Special Assessment Bonds 5,645,000 5,645,000 1,215,000 4,430,000 305,000 222,329 Total Bonded Indebtedness 5,645,000 5,645,000 1,215,000 4,430,000 305,000 222,329 Certificates of Indebtedness 127,000 127,000 52,000 75,000 15,000 4,860 Total City Indebtedness 5.772 .000 5.772.000 1,267 .000 4.505.000 320,000 227.189 The Notes To The Financial Statements Are An Integral Part of This Statement. I ..... W I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA REPORT ON EXAMINATION YEAR ENDED DECEMBER 31, 1978 PART II M. J. LON G CO. I I I I I CITY OF SHOREWOOD GENERAL FUND BALANCE SHEET December 31, 1978 Part II Exhibit liB" ASSETS I I I I Current Assets Cash - Regular Cash - Savings Accounts Receivable - Regular Prepaid Interest Taxes Receivable - Delinquent Special Assessments Receivable Current Delinquent Accrued Interest Receivable Special Assessments - Current 14,830 25,000 49,622 3,070 16,276 3,090 217 509 Total Current Assets 112,614 Other Assets Deferred Special Assessments Receivable 6,347 Total Other Assets 6,347 TOTAL ASSETS J18",,,'L61 I I LIABILITIES AND FUND EQUITY Liabilities I I I Current Liabilities Accounts Payable Accrued Expenses Certificates of Indebtedness - Current Portion Notes Payable - Current Portion Contracts Payable - Current Portion 38,674 11,335 15,000 6 , 323 9,420 Total Current Liabilities 80,752 Long-Term Liabilities Certificates of Indebtedness Notes Payable Contracts Payable 60,000 16,267 36,096 I I I I I Total Long-Term Liabilities 112,363 Total Liabilities 193,115 Fund Equity Fund Balance (Deficit) (74,154) TOTAL LIABILITIES AND FUND EQUITY 118.961 The Notes To The Financial Statements Are An Integral Part of This Statement. -15- M. J. LO N G CD. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE For The Year Ended December 31, 1978 Part II Exhibit liB-I" FUND BALANCE, January 1 (Cash Basis) 28,053 Adjustments To Effect Change From Cash Basis To Accrual Basis: Special Assessments Accounts Receivable - Regular Accrued Interest Receivable - Special Assessments Taxes Receivable - Delinquent Accounts Payable Accrued Salaries Accrued Interest Notes Payable Contract For Deed Certificate of Indebtedness FUND BALANCE, January 1, (Restated on Accrual Basis) 15,118 9,815 507 28,392 (18,748) (998) (1,678) (26,094) (52,215) (32,265) (50,113) Revenues 609.,060 Expenditures (633,101) (~~) FUND BALANCE (DEFICIT) December 31 The Notes To The Financial Statements Are An Integral Part of This Statement. -16- M. J. LO N G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD GENERAL FUND STATEMENT OF REVENUES - ESTIMATED AND ACTUAL For The Year Ended December 31, 1978 TAXES Property Taxes TOTAL TAXES LICENSES AND PERMITS Business Licenses and Permits Non-Business Licenses and Permits TOTAL LICENSES AND PERMITS INTERGOVERNMENTAL REVENUE Federal Grants CETA Community Development State Grants Local Government Aid Homestead Credit Tree Disease Machinery Aid Planning County Grants Fiscal Disparities Road Aid TOTAL INTERGOVERNMENTAL REVENUE CHARGES FOR SERVICES General Government Public Works Sanitation TOTAL CHARGES FOR SERVICES FINES AND FORFEITS Fines TOTAL FINES AND FORFEITS MISCELLANEOUS REVENUES Special Assessments Rents Refunds and Reimbursements MWCC SAC Charges Building Permit Surcharge TOTAL MISCELLANEOUS REVENUES TOTAL REVENUES The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LON G CO. 8,000 20,000 112,970 48,000 4,000 63 6,000 12,500 211,533 20,600 5,000 5,000 200 65,905 66,105 579.080 P art II Exhibit "B-2" 11,765 31,801 112,970 48,766 8,177 110 1,857 4,428 20,999 240,873 11,596 11,347 6,776 29,719 6,734 6,734 (2;016) 4,315 2,016 25,203 2,062 -- 31,580 609.060 -17- I I CITY OF SHOREWOOD GENERAL FUND STATEMENT OF EXPENDITURES - ESTI~~TED AND ACTUAL For The Year Ended December 31. 1978 I GENERAL GOVERNMENT Mayor and Council Current Expenditure Publications Current Expenditure Elections and Voter Registration Current Expenditure Finance Administrative and Clerical Current Expenditure Capital Outlay Assessor Current Expenditure Independent Accountants and Auditors Current Expenditure Planning and Zoning Current Expenditure Legal Current Expenditure General Government Buildings Current Expenditure Capital Outlay I I I I I I I I TOTAL GENERAL GOVERNMENT PUBLIC SAFETY Police Protection Current Expenditure Capital Outlay Fire Protection Current Expenditure Protective Inspection Current Expenditure Animal Control Current Expenditure I I I TOTAL PUBLIC SAFETY I I I The Notes To The Financial Statements Are An Integral Part of This Statement. I I M. J. LON G CO. Part II Exhibit "B-3" Page 1 of 3 Estimated Actual 12.800 13.170 1.200 828 3.200 6.531 34.440 34.085 905 10.000 9.916 1.800 1.775 11.000 18.998 30.000 38.616 3.200 3.567 587 -~ 107.640 128.978 147.600 lItO.344 10.000 26.600 27.465 11.500 10.03tl 3.600 1,288 189.300 189.135 -- -18- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD GENERAL FUND STATEMENT OF EXPENDITURES - ESTIMATED AND ACTUAL For The Year Ended December 31, 1978 Part II Exhibit "B-3" Page 2 of 3 TOTAL STREETS AND HIGHWAYS Estimated Actual 23,000 24,304 19,247 40,000 25,474 9,000 10,294 3,600 2,868 4,400 3,849 25,000 22,657 20,000 18,141 5,500 2,824 1,705 130,500 131,363 STREETS AND HIGHWAYS Engineering Current Expenditures Streets Current Expenditure Capital Outlay Snow and Ice Removal Current Expenditure Street Lighting Current Expenditure Traffic Signs, Signals and Markings Current Expenditure Equipment Maintenance Current Expenditure Capital Outlay Public Works Buildings Current Expenditure Capital Outlay SANITATION AND WASTE REMOVAL Rubbish Pick-Up Current Expenditure Storm Sewers Current Expenditure Capital Outlay Weed Control Current Expenditure Tree Disease Control Current Expenditure Capital Outlay Salaries Not Allocated TOTAL SANITATION AND WASTE REMOVAL 1,500 2,810 4,500 5,676 597 2,000 1,826 28,000 27,349 9,334 4,500 40,500 47,5')2 HEALTH Nursing Services Current Expenditure 3,000 1,533 TOTAL HEALTH 3,000 1,533 RECREATION Parks and Playgrounds Current Expenditure Capital Outlay Beaches Current Expenditure Capital Outlay Skating Rinks Current Expenditure Capital Outlay Community Services Current Expenditure M. J. LO N G CO. 6,200 7,303 31,835 1,500 553 3QO v/ 6,000 11,346 6,154 _~,OOO 4,301 -19- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD GENERAL FUND STATEMENT OF EXPENDITURES - ESTIMATED AND ACTUAL For The Year Ended December 31, 1978 RECREATION (Continued) TOTAL RECREATION DEBT SERVICE Interest TOTAL DEBT SERVICE UNALLOCATED GENERAL EXPENSE FICA PERA Health Insurance Social Security Administration Petty Cash General Insurance Special Assessments on City Property TOTAL UNALLOCATED GENERAL EXPENSE MISCELLANEOUS MWCC SAC Charges Building Permit Surcharge TOTAL MISCELLANEOUS TOTAL EXPENDITURES The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LON G CO. Estimated 17,700 11,200 11,200 4,600 4,800 8,000 15,000 32,400 59,060 591.1QJ~ Part II Exhibit "B-3" Page 3 of 3 Actual 61,881 7,490 7,490 6,254 5,469 6,787 11 50 17,368 1,906 37 , 845 25,294 1,990 27,284 633.101 -20- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD FEDERAL REVENUE SHARING FUND BALANCE SHEET December 31, 1978 Part II Exhibit "c" ASSETS Current Assets Cash - Regular Cash - Savings Interest Receivable 11,540 186 368 TOTAL ASSETS 12,094 FUND EQUITY Fund Balance 12,094 TOTAL FUND EQUITY 12,.094 The Notes To The Financial Statements Are An Integral Part of This Statement. -21- M. J. LO N G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD FEDERAL REVENUE SHARING FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1978 Part II Exhibit "C-1" REVENUES Federal Revenue Sharing Interest Income 20,182 462 TOTAL REVENUES 20,644 EXPENDITURES Engineering - Water Study 5,443 TOTAL EXPENDITURES 5,443 NET INCREASE IN FUND BALANCE 15,201 FUND BALANCE, January 1 (Cash Basis) 2,496 Adjustment To Effect Change From Cash Basis To Accrual Basis: Accounts Payable (5,603) (3,107) FUND BALANCE, January 1, (Restated on Accrual Basis) FUND BALANCE, December 31 12.094 The Notes To The Financial Statements Are An Integral Part of This Statement. -22- M. J. LONG CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD PARK CAPITAL IMPROVEMENT FUND BALANCE SHEET December 31. 1978 Part II Exhibit "D" ASSETS Current Assets Cash - Regular Cash - Savings Interest Receivable 14.990 157 613 TOTAL ASSETS 15,760 FUND EQUITY Fund Balance 15,760 TOTAL FUND EQUITY .15.76Q The Notes To The Financial Statements Are An Integral Part of This Statement. -23- M. J. LO N G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD PARK CAPITAL IMPROVEMENT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN For The Year Ended December 31, 1978 Part II Exhibit liD-I" FUND BALANCE REVENUES Subdivision Fees Donations Interest Income 8,900 110 770 TOTAL REVENUES 9,780 EXPENDITURES TOTAL EXPENDITURES -0- NET INCREASE IN FUND BALANCE 9,780 FUND BALANCE, January 1 5,980 FUND BALANCE, December 31 l5~6JL The Notes To The Financial Statements Are An Integral Part of This Statement. -24- M. J. LON G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET December 31, 1978 Part II Exhibit "E" Debt Service Utility Improvement Contingency Total ASSETS Current Assets Cash - Regular Cash - Savings Investments Certificates of Deposit Special Assessments Receivable Current Delinquent Accrued Interest Receivable Investments Special Assessments Interest Receivable 16,074 85, 115 14,050 4,910 30,124 90,025 783,214 180,000 963,214 181,619 119,917 181,619 119,917 12,052 170,812 12,052 170,812 9,323 9,323 Total Current Assets 1,368,803 208,283 1,577,086 Other Assets Deferred Special Assessments Receivable 2,383,831 2,383,831 Total Other Assets 2,383,831 2,383,831 TOTAL ASSETS 3---252,634 208,283 3.960,917 LIABILITIES AND FUND EQUITY Liabilities Current Liabilities Accrued Interest Payable Bonds Payable - Current Portion 32,579 32,579 305,000 305,000 337,579 337,579 4,125,000 4,125,000 4,125,000 4,125,000 4,462,579 4,462,579 (709,945) 208,283 (501,662) .1.752,634 20~83 J.....960 ,917 Total Current Liabilities Long-Term Liabilities Bonds Payable Total Long-Term Liabilities Total Liabilities Fund Equity Fund Balance (Deficit) TOTAL LIABILITIES AND FUND EQUITY The Notes To The Financial Statements Are An Integral Part of This Statement. -25- M. J. LONG CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD SPECIAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND For The Year Ended December 31, Part II Exhibit "E-l" CHANGES IN FUND BALANCES 1978 Debt Service REVENUES Special Assessments Interest Other Revenues Equalization Assessments Interest on Investments Sewer Assessments 170,812 54,150 TOTAL REVENUES 224,962 EXPENDITURES Interest on Bonds Service Charges Refunds 235,107 480 204 TOTAL EXPENDITURES 235,791 NET INCREASE (DECREASE) IN FUND BALANCE (10,829) FUND BALANCE, January 1 7 85,92 9 Adjustments To Effect Change From Cash Basis to Accrual Basis: Accrued Interest Payable Special Assessments Levied Bonds Payable Accrued Interest Receivable Investments (15,287) 3,251,571 (4,730,000) 8,671 FUND BALANCE, (Deficit) January 1 (Restated on Accrual Basis) (699,116) ~945) FUND BALANCE, (Deficit) December 31 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LONG CO. Utility Improvement Contingency 23,619 11,708 30,800 66,127 66,127 142,156 142,156 208.283 Total 170,812 23,619 65,858 30,800 291,089 235,107 480 204 235,791 55,298 928,085 (15,287) 3,251,571 (4,730,000) 8,671 (556,960) (.501. 662) -26- I I I I I I I I I I I I I I CITY OF SHOREWOOD SPECIAL ASSESSMENT FUND - DEBT SERVICE BALANCE SHEET December 31, 1978 Part II Exhibit "E-2" ASSETS Current Assets Cash - Regular Cash - Savings Investments Certificates of Deposit Special Assessments Receivable Current Delinquent Accrued Interest Receivable Investments Special Assessments 16,074 85 , 115 783,214 181,619 119,917 12,052 170,812 Total Current Assets 1,368,803 Other Assets Deferred Special Assessments Receivable 2,383,831 -,-- Total Other Assets 2,383,831 TOTAL ASSETS 2...>-252,634 LIABILITIES AND FUND EQUITY Liabilities Current Liabilities Accrued Interest Payable Bonds Payable - Current Portion 32,579 305,000 Total Current Liabilities 337,579 --- Long-Term Liabilities Bonds Payable 4,125,000 Total Long-Term Liabilities 4,125,000 Total Liabilities 4,462,579 Fund Balance Fund Balance (Deficit) (709,945) I I I I I TOTAL LIABILITIES AND FUND EQUITY 3,752,634 The Notes To The Financial Statements Are An Integral Part of This Statement. -27- M. J. LONG CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD SPECIAL ASSESSMENT FUND - DEBT SERVICE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1978 REVENUES Special Assessments Interest Other Revenues Interest on Investments TOTAL REVENUES EXPENDITURES Interest on Bonds Service Charges Refunds TOTAL EXPENDITURES NET (DECREASE) IN FUND BALANCE FUND BALANCE, January 1, (Cash Basis) Adjustments To Effect Change From Cash Basis To Accrual Basis: Accrued Interest Payable Special Assessments Levied Bonds Payable Accrued Interest Receivable: Investments FUND BALANCE, (Deficit) January 1 (Restated on Accrual Basis) FUND BALANCE, (Deficit) December 31 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LONG CO. Part II Exhibit "E-3" 170,812 54,150 224,962 235,107 480 204 235,791 -- (10,829) 785,929 (15,287) 3,251,571 (4,730,000) 8,671 (699,116) 002..945) -28- CITY OF SHOREWOOD SPECIAL ASSESSMENT FUND - UTILITY IMPROVEMENT CONTINGENCY FUND BALANCE SHEET December 31, 1978 I I I I I I I I I I I I I I I I I I I ASSETS Current Assets Cash - Regular Cash - Savings Investments Certificates of Deposit Interest Receivable TOTAL ASSETS FUND EQUITY Fund Balance TOTAL FUND EQUITY The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LON G CO. Part II Exhibit "E-4" 14,050 4,910 180,000 9,323 208,283 208,283 1.08,2-.a3 -29- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD SPECIAL ASSESSMENT FUND - UTILITY IMPROVEMENT CONTINGENCY FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1978 REVENUES Equalization Assessments Interest on Investments Sewer Assessments TOTAL REVENUES NET INCREASE IN FUND BALANCE FUND BALANCE, January 1 FUND BALANCE, December 31 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LONG CO. Part II Exhibit "E-5" 23,619 11,708 30,800 -- 66,127 66,127 llf2,156 208.>....283 -30- CITY OF SHOREWOOD ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1978 I I I I I I I I I I I I I I I I I I I ASSETS Current Assets Cash - Regular Cash - Savings Investments Certificates of Deposit Accounts Receivable Special Assessments Receivable Current Delinquent Inventories - Stores For Resale - (Note 1) Prepaid Expenses Interest Receivable Total Current Assets Fixed Assets (Note 1) Improvements Other Than Buildings Equipment Less: Allowance For Depreciation Total Fixed Assets TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS Liabilities Current Liabilities Accounts Payable Accrued Liabilities Total Liabilities Retained Earnings Unreserved Total Retained Earnings TOTAL LIABILITIES AND RETAINED EARNINGS Sanitary Sewer & Water Liquor Operating 37,772 24,311 25,351 7,119 105,926 4,956 205,435 3,955 22,639 26,594 (23,835) 2,759 208.194 30,409 6,622 37,031 171,163 171,163 l.QJl.194 16,769 16,521 100,000 40,993 5,498 1,528 8,465 189,774 15,532 15,532 (777) 14,755 204.529 3,017 3,017 201,512 201,512 _204 . 52 9 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LON G CO. Part II Exhibit Metropolitan Waste Control Commission (9,550) (9,550) (9~50J (9,550) (9,550) (9.55Q) "F" Total 44,991 40,832 125,351 48,112 5,498 1,528 105,926 4,956 8,465 385,659 3,955 38,171 42,126 (24,612) 17,514 403.173 33,426 6,622 40,048 363,125 363,125 403.173 -31- I I I I I I I I I I I I I I I I I I I Part II Exhibit "F-1" Page 1 of 2 CITY OF SHOREWOOD ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1978 AND Sanitary Metropolitan Sewer & Water Waste Control Liq uor Operating Commission Total SALES AND COST OF SALES Sales 699,639 699,639 Cost of Sales 539,392 539,392 GROSS PROFIT 160,247 160,247 OPERATING REVENUES Sewer Connection Permits 2,750 2,750 Water Connection Permits 180 180 Disposal Fees 1,155 1,155 Sewer Service Charges 149,684 149,681! Contracted Services 3,442 3,442 Parts and Repairs 106 106 Water Sales 7,880 7,880 Meter Sales 1,005 1,005 Connection Fees 900 900 TOTAL OPERATING REVENUES 167,102 167,102 TOTAL GROSS PROFIT AND OPERATING REVENUES 160,247 167,102 327,349 OPERATING EXPENSES Salaries and Wages Payroll Taxes Employee Benefits Rent Utilities Telephone Insurance Advertising Depreciation Professional Services Bad Debts Cash Variance Supplies Office Expense Repairs and Maintenance Dues and Subscriptions Postage Laundry Security Rubbish Hauling Employee Reimbursements 65,146 4,792 3,390 32,786 5,323 1,131 9,601 671 976 7,014 270 108 1,765 827 724 75 260 326 816 344 1,517 M. J. LON G CO. 31,619 1,912 2,808 96,765 6,704 6,198 32,786 7,623 1,131 13,279 671 1,753 7,014 270 108 10,749 1,939 724 75 260 326 816 344 1,517 -32- 2,300 3,678 777 8,984 1,112 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1978 Part II Exhibit "F-1" Page 2 of 2 Sanitary Sewer & Water Liquor Operating Metropolitan Waste Control Commission OPERATING EXPENSES (CONTINUED) PERA Small Tools Electricity - Lift Stations Contracted Services Education Service Charge Refunds Sewer Use Charge Connection Fees Purchases - Water Sales Tax 1,740 1,090 2,675 1,705 105 75 74,366 900 6,142 234 TOTAL OPERATING EXPENSES 137,862 142,222 OPERATING INCOME (LOSS) 22,385 24,880 OTHER REVENUES Interest Property Taxes Special Assessments Refunds 2,935 10,489 18,713 5,498 554 TOTAL OTHER REVENUES 2,935 19,267 15,987 OTHER EXPENSES Deferred Charges Metropolitan Waste Control Commission 6,485 20,264 TOTAL OTHER EXPENSES 26,749 NET INCOME (LOSS) TO RETAINED EARNINGS 40,867 (7,482) 25,320 RETAINED EARNINGS, January 1 (Cash Basis) 71,777 122,773 (2,068) Adjustments To Effect Change Accounts Receivable Inventories Prepaid Expenses Property and Equipment Accounts Payable Accrued Liabilities From Cash 4,707 97,989 3,249 3,735 (29,342) (6,272) Basis To Accrual Basis: 39,539 (1,667) RETAINED EARNINGS, January 1 (Restated on Accrual Basis) 145,843 160,645 (32..068) (9,550) RETAINED EARNINGS, DECEMBER 31 .171,163 2..01.512 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LONG CO. Total 1,740 1,090 2,675 1,705 105 75 74,366 900 6,142 234 280,084 47,265 13,1+24 18,713 5,498 554 38,189 6,485 20,264 26,749 58,705 192,482 44,246 97t989 3, 2l~9 3,735 (31,009) (6,272) 304,420 363,125 -33- CITY OF SHOREWOOD ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION For The Year Ended December 31, 1978 I I I I I I I I I I I I I I I I I I I Liquor SOURCES OF FINANCIAL RESOURCES Operations Net Income (Loss) For The Add: Items Not Requiring Outlay of Resources Depreciation Year 25,320 Current 976 TOTAL RESOURCES PROVIDED BY ALL SOURCES 26,296 USES OF FINANCIAL RESOURCES Acquisition of Fixed Assets TOTAL USES OF FINfu~CIAL RESOURCES NET INCREASE (DECREASE) IN WORKING CAPITAL 26.29~ COMPONENT ELEMENTS OF INCREASE (DECREASE) IN WORKING CAPITAL Cash - Regular Cash - Savings Accrued Interest Receivable Accounts Receivable Inventories - Stores for Resale Special Assessments Receivable Current Delinquent Investments Certificates of Deposit Prepaid Expenses Accounts Payable Accrued Liabilities 28,419 (12,762) 2,412 7,937 1,707 (1,067) (350) NET INCREASE (DECREASE) IN WORKING CAPITAL 26.296 Sanitary Sewer & Water Operating 40,867 777 41,644 15,532 15,532 _26,112- (89,483) 8,465 1,454 5,498 1,528 100,000 (1,350) 26.112 Part II Exhibit "F-2" Metropolitan Waste Control Commission (7,482) (7,482) (h48~) (7,482) (7 . 41l~) The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LON G CO. Total 58,705 1,753 60,458 15,532 15,532 .4!h2-~~ (68,546) (12,762) 8,465 3,866 7,937 5,498 1,528 100,000 1,707 (2,417) ( 350) 44.926 -34~ I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD LIQUOR FUND BALANCE SHEET December 31. 1978 Part II Exhibit "F-3" ASSETS Current Assets Cash - Regular Cash - Savings Investments Certificates of Deposit Accounts Receivable Inventories - Stores For Resale (Note 1) Prepaid Expenses 37,772 24,311 25.351 7,119 105,926 4,956 Total Current Assets 205,435 Fixed Assets (Note 1) Improvements Other Than Buildings Equipment 3,955 22~639 26,594 (23,835) Less: Allowance for Depreciation Total Fixed Assets 2,759 TOTAL ASSETS l.QJl~ 19l. LIABILITIES AND RETAINED EARNINGS Current Liabilities Accounts Payable Accrued Liabilities 30,409 6,622 Total Liabilities 37,031 Retained Earnings Unreserved 171,163 Total Retained Earnings 171.163 TOTAL LIABILITIES AND RETAINED EARNINGS 208.194 The Notes To The Financial Statements Are An Integral Part of This Statement. -35- M. J. LON G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD LIQUOR FUND STATEMENT OF REVENUES, EXPEN~_ES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1978 Part II Exhibit "F-4" SALES AND COST OF SALES Sales Cost of Sales TOTAL GROSS PROFIT 699,639 539,392 160,247 OPERATING EXPENSES Salaries and Wages Payroll Taxes Employee Benefits Rent Utilities Telephone Insurance Advertising Depreciation Professional Services Bad Debts Cash Variance Supplies Office Expense Repairs and Maintenance Dues and Subscriptions Postage Laundry Security Rubbish Hauling Employee Reimbursements TOTAL OPERATING EXPENSES 65,146 4,792 3,390 32,786 5,323 1,131 9,601 671 976 7,014 270 108 1,765 827 724 75 260 326 816 3l.4 1,517 137,862 OPERATING INCOME 22,385 OTHER REVENUES Interest 2,935 TOTAL OTHER REVENUES 2,935 NET INCOME TO RETAINED EARNINGS 25,320 RETAINED EARNINGS, January 1 (Cash Basis) 71,777 Adjustments To Effect Change From Cash Basis To Accrual Basis: Accounts Receivable Inventories Prepaid Expenses Property and Equipment Accounts Payable Accrued Liabilities 4,707 97,989 3,249 3,735 (29,342) ( 6,272) RETAINED EARNINGS, January 1 (Restated On Accrual Basis) 145,843 RETAINED EARNINGS, December 31 l7~,J.63 The Notes To The Financial Statements Are An Integral Part of This Statement. -36 M. J. LONG CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD LIQUOR FUND STATEMENT OF CtUU~GES IN FINANCIAL POSITION For The Year Ended December 31, 1978 Part II Exhibit IF-5" SOURCES OF FINANCIAL RESOURCES Operations Net Income For The Year Add: Items Not Requiring Current Outlay of Resources Depreciation 25,320 976 Total Resources Provided By Operations 26,296 NET INCREASE IN WORKING CAPITAL 2.6 . 2 9~ COMPONENT ELEMENTS OF INCREASE IN WORKING CAPITAL Cash - Regular Cash - Savings Accounts Receivable Inventories - Stores For Resale Prepaid Expenses Accounts Payable Accrued Liabilities 28,419 (12,762) 2,412 7,937 1,707 (1,067) (350) NET INCREASE IN WORKING CAPITAL 2_9.296 The Notes To The Financial Statements Are An Integral Part of This Statement~ -37- M. J. LON G CO. I I I I I I I I I I I I I I I CITY OF SHOREWOOD SANITARY SEWER A..~D WATER OPERATING FUND BALAi'lCE SHEET December 31, 1978 Part II Exhibit "F-6" ASSETS Current Assets Cash - Regular Cash - Savings Accounts Receivable Special Assessments Receivable Current Delinquent Investments Certificates of Deposit Interest Receivable 16,769 16,521 40,993 5,498 1 ,528 100,000 8,465 Total Current Assets 189,774 Fixed Assets Equipment Less: Allowance For Depreciation 15,532 (777) Total Fixed Assets 14,755 ..204.529 TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS Current Liabilities Accounts Payable 3,017 Total Liabilities 3,017 Retained Earnings Unreserved 201,512 TOTAL LIABILITIES AND RETAINED EARNINGS 204.529 I I I I The Notes To The Financial Statements Are An Integral Part of This Statement. -38- M. J. LON G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD SANITARY SEWER AND WATER OPERATING FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EAfu~INGS For The Year Ended December 31, 1978 OPERATING REVENUES Sewer Connection Permits Water Connection Permits Disposal Fees Sewer Service Charges Contracted Services Parts and Repairs Water Sales Meter Sales Connection Fees TOTAL OPERATING REVENUE Less: Operating Expenses Salaries and Wages FICA PERA Health Insurance Other Insurance Office Expense Supplies Small Tools Depreciation Utilities Electricity - Lift Stations Contracted Services Education Service Charge Refunds Sewer Use Charge Connection Fees Purchases - Water Sales Tax TOTAL OPERATING EXPENSE OPERATING INCOME ADD: NON-OPERATING REVENUES Special Assessments Interest TOTAL NON-OPERATING REVENUE NET INCOME TO RETAINED EARNINGS RETAINED EARNINGS, January 1, (Cash Basis) Adjustment To Effect Change From Cash Basis To Accrual Basis: Accounts Receivable Accounts Payable RETAINED EARNINGS, January 1, (Restated on Accrual Basis) RETAINED EARNINGS, December 31 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LONG CO. Part II Exhibit "F-7" 2,750 180 1,155 149,684 3,442 106 7,880 1,005 900 167,102 31,619 1,912 1,740 2,808 3,678 1,112 8,984 1,090 777 2,300 2 , 6 75 1,705 105 75 74,366 900 6,142 234 142,222 24,880 5,498 10,489 15,987 40,867 122,773 39,539 (1,667) 160,645 201.512 -39- I I I I I CITY OF SHOREWOOD SANITARY SEWER AND WATER OPERATING FUND STATEMENT OF CHANGES IN FINANCIAL POSITION For The Year Ended December 31, 1978 Part II Exhibit IIF_S" SOURCES OF FINANCIAL RESOURCES Operations Net Income For The Year Add: Items Not Requiring Current Outlay of Resources Depreciation Total Resources Provided by Operations 40,867 777 41,644 Uses of Financial Resources Acquisition of Fixed Assets 15,532 I I I I I I I Total Uses of Financial Resources 15,532 NET INCREASE IN WORKING CAPITAL ~~1J12 COMPONENT ELEMENTS OF INCREASE IN WORKING CAPITAL Cash - Regular Accounts Receivable Special Assessments Receivable Current Delinquent Investments Certificates of Deposit Accrued Interest Receivable Accounts Payable (89,483) 1,454 5,498 1,528 100,000 8,465 (1,350) NET INCREASE IN \<]ORKING CAPITAL -2-..9_,lU_ -- I I I I I I The Notes To The Financial Statements Are An Integral Part of This Statement. -40- I M. J. LO N G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD METROPOLITAN WASTE CONTROL COMMISSION BALA1'l"CE SHEET December 31, 1978 Part II Exhibit "F-9" ASSETS Current Assets Cash - Regular (9,550) TOTAL ASSETS (9.550) RETAINED EARNINGS Unreserved (Deficit) TOTAL RETAINED EARNINGS (9,55(}) (9.550) The Notes To The Financial Statements Are An Integral Part of This Statement. -41- M. J. LON G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD METROPOLITAN HASTE CONTROL CONMISSION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED For The Year Ended December 31, 1978 REVENUES Property Taxes Refunds TOTAL REVENUES EXPENSES Deferred Charges Metropolitan Haste Control Con~ission TOTAL EXPENSES NET INCOME (LOSS) TO RETAINED EARNINGS RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 The Notes To The Financial Statements Are An Integral Part of This Statement. M. J. LONG CO. Part II Exhibit IfF-IO' EARNINGS 18,713 554 19,267 6,485 20,264 26,749 (7,482) (2 . 06~) (2.550) -42- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD METROPOLITAN WASTE CONTROL CmlHISSION STATEMENT OF CHANGES IN FINANCIAL POSITION For The Year Ended December 31, 1978 Part II Exhibit ifF-lIlt SOURCES OF FINANCIAL RESOURCES Operations Net Loss For The Year NET DECREASE IN WORKING CAPITAL (7,482) (7,482) <LlL82 ) Total Resources Provided By Operations COMPONENT ELEMENTS OF DECREASE IN WORKING CAPITAL Cash - Regular (7,482) NET DECREASE IN WORKING CAPITAL Q.,J&Z) The Notes To The Financial Statements Are An Integral Part of This Statement. -43- M. J. LO N G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD GENERAL FIXED ASSET GROUP OF ACCOUNTS STATEMENT OF GENERAL FIXED ASSETS For The Year Ended December 31, 1978 Part II Exhibit "G" GENERAL FIXED ASSETS Buildings Improvements Other Than Buildings Machinery and Equipment 77,373 38,896 59,886 176,155 Less Accumulated Depreciation (12,509) TOTAL GENEfu\L FIXED ASSETS 163,646 INVESTMENT IN GENERAL FIXED ASSETS 163.646 The Notes To The Financial Statements Are An Integral Part of This Statement. -44- M. J. LON G CO. I I I Note 1 - -- I I I I I I I I I I I I I I I I CITY OF SHOREWOOD NOTES TO THE FINANCIAL STATEMENTS December 31, 1978 Summary of Significant Accounting Policies The accounting policies of the City conform to generally accepted accounting principles applicable to governmental units. The following is a summary of the more significant accounting policies of the City of Shorewood. Funds Governmental accounting systems are organized and operated on a fund basis. A fund is defined as an independent fiscal and accounting entity with a self balancing set of accounts. A fund is established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special laws, regulations, restrictions or limitations. Each fund segregates, based on the purpose of the fund, its own cash and/or other re- sources together with all related liabilities, obligations, re- serves and equities. Basis of Accounting The financial statements of all funds except the General and Special Revenue Funds are prepared on the accrual basis. The finan- cial statements of the General and Special Revenue Funds are prepared on the modified accrual basis. The modified accrual basis of accounting is defined as that method of accounting in which expenditures, other than accrued in- terest on long-term debt, are recorded at the time liabilities are incurred and revenues, except for material or available revenues which are accrued to properly reflect the taxes levied and the revenues earned, are recorded when received in cash. Cash and Temporary Investments Cash balances from all funds are pooled and invested to the extent available in certificates of deposit. Earnings from such investments were allocated to the following funds on the basis of applicable cash balance participation by each of the funds: Enterprise Funds - Sanitary Sewer and Water Operating Special Revenue Funds - Federal Revenue Sharing Capital Projects Funds - Park Capital Improvement Special Assessment Funds Debt Service Utility Improvement Contingency All items classified as investments of the City are certificates of deposit and should be oonsidered as cash. -45- M. J. LONG CO. I Note 1 - Summary of Significant Accounting Policies (ContinuedL I Taxes Receivable I An allowance for uncollectible taxes was not established in this the first year on the accrual method or basis of accounting since there were no historical records available in the City on which to base the allowance. I Accrued Interest Receivable I Accrued interest receivable on special assessments repre- sents all interest due in 1979 on special assessments. I Inventories The City uses a modified retail method for valuing inventories. I Property, Plant and Equipment I Additions of property, plant and equipment in the Liquor Fund are capitalized at historical cost and depreciated over the estimated useful lives of each item. Depreciation is accounted for by the straight-line method. Acquisitions prior to January 1, 1978 have not been recorded in the General Fixed Asset Group of Accounts or the Sewer and Water Operating Fund. Except in the Liquor Fund, as mentioned in the previous paragraph, no complete historical record exists of costs for the City's investment in property, plant and equipment. Subsequent to January 1, 1978, accounting for fixed assets has been in accordance with generally accepted accounting principles which require the following: I I I Fixed assets acquired for general City purposes are recorded as expenditures in the General, Special Revenue, Special Assessment, and Capital Projects Funds, and capitalized at cost in the General Fixed Asset Group of Accounts. Fixed assets acquired for liquor and utility operations are capitalized at cost in the Enterprise Fund. I I Depreciation I Depreciation is provided for all fixed assets subsequent to January 1, 1978 and is determined using the straight-line method for the estimated useful life of the asset. I Note 2 - Certificates of Indebtedness I Certificates of indebtedness at December 31, 1978 consist of a certificate in the amount of $75,000 dated June 15, 1978, issued by the City for the purpose of purchasing road maintenance and police equipment. It is payable in annual installments of $15,000 through June 15, 1983 plus semi-annual interest payments beginning at 4.20% and increasing by .20% each year. I I -46- I M. J. LON G CO. I Note 3 - Contracts Payable I Contracts payable at December 31, 1978 consist of three contracts as follows: I A contract in the amount of $5,432 payable in annual installments of $1,800, which includes 7% interest, with final payment due in 1982; I I A contract for $23,475 payable in semi-annual installments of $3,000 which includes 8%_interest, with final payment due in 1982; and I A contract for $16,000 payable in semi-annual installments of $2,000 plus interest at 7% with final payment due in 1982. Note 4 - Notes Payable I Notes payable at December 31, 1978 consist of a note in the amount of $20,129 payable in annual installments of $7,500, which includes 6% interest, with final payment due in 1981. I Note 5 - Bonds Payable I The bonded debt outstanding and related maturities and interest rates are summarized in Part III, Schedule 2, the Schedule of City Indebtedness. I I All bonds payable are special assessment bonds. These bonds are recorded as a liability in the Special Assessment - Debt Service Fund. The bonds are payable primarily from special assessments levied and collected for local improvements, and are backed by the full faith and credit of the City. I Note 6 - Security for Bank Deposits I The City's demand and time deposits held at Minnetonka State Bank at December 31, 1978 totalled $1,335,029. Securities pledged by Minnetonka State Bank and held in safekeeping at First National Bank of Minneapolis had a market value of $1,071,064 on December 31, 1978. It is our understanding that securities pledged by the depository bank should equal 110% of the total City funds in that depository reduced by $40,000 on demand deposits and $100,000 on time deposits insured by the Federal Deposit Insurance Corporation. We recommend that responsible City personnel determine that sufficient securities are pledged by the depository bank throughout the year. I I I Note 7 - Contingencies Amounts to be Provided for Payment of Future Bond Interest I I In accordance with generally accepted accounting principles, amounts to be provided for payment of future bond interest have not been reflected in the Special Assessment Fund balance sheet except for the accrued portion payable at December 31, 1978. However, the City has future interest payable on the Special Assessment Bonds of $1,693,696. I -47- M. J. LON G CO. I I Note 7 - Contingencies (Continued) I I I I I I I I I I I I I I I I I Claims or Lawsuits Minnetonka Moorings, Inc. filed a claim in August of 1977 for damages suffered in excess of $100,000 by reason of the City's having denied the claimant a conditional use permit to operate a yacht club. No suit has ever been instituted. The final findings or results in the above claim are not known at this time. No provision has been made in the financial statements for the above item. -48- M. J. LON G CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA REPORT ON EXAMINATION YEAR ENDED DECEMBER 31, 1978 PART III M. J. LONG CO. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD STATEMENT OF SECURITY FOR BANK DEPOSITS PLEDGED BY OFFICIAL DEPOSITORY December 31. 1978 Due Date Depository: Minnetonka State Bank In Safekeeping At First National Bank of Minneapolis SECURITIES PLEDGED BY OFFICIAL DEPOSITORY United States Treasury Notes United States Treasury Notes Federal Inter. Credit Banks Federal Home Loan Banks Federal National Mortgage Assn. Mass. State College Bldg. Authority 2-15-82 2-15-82 1-02-80 11-25-80 4-10-84 12-01-92 TOTAL SECURITIES PLEDGED BY OFFICIAL DEPOSITORY M. J. LONG CO. Par Value 200.000 200.000 200.000 300.000 200.000 50.000 1 .15~0 . 000 Part III Schedule 1 Market Value 181.875 181.875 193.750 286.500 181.750 45,314 1--,-071.064 -50- ------------------- CITY OF SHOREWOOD STATEMENT OF CITY I~~EBTEDNESS December 31, 1978 Part III Schedule 2 Outstanding Outstanding Date of Interest January 1, Issued Paid December 31, Type of Indebtedness Is s ue Rate 1978 in 1978 in 1978 1978 General Obligation Sewer 4.00% to Improvement Bonds - 69LS-1A 11-01-72 5.00% 335,000 20,000 315,000 General Obligation Sewer Improvement Bonds - 4.10% to 69LS-1B-1C-1D 06-01-72 5.60% 1,925,000 125,000 1,800,000 General Obligation Sewer Improvement Bonds - 4.00% to 69LS-1B-1C-1D 1l-01-72 5.40% 1,345,000 85,000 1,260,000 General Obligation Water Improvement Bonds - 5.25% to 73LW-l, LW-2 07-01-73 5.50% 70,000 5,000 65,000 General Obligation Sewer 4.75% to Improvement Bonds - 73LS-l 01-01-74 5.70% 1,055,000 65,000 990,000 4.20% to Certificates of Indebtedness 06-15-78 5.00% 32,000 75,000 32,000 75,000 Total City Indebtedness ~762 ,000 75,000 332,000 4,505,000 I Ln to-' I I I I I I CITY OF SHOREWOOD SCHEDULE OF INSURANCE COVERAGE IN FORCE December 31, 1978 UNAUDITED INSURANCE COVERAGE Multi-Peril or Package Policy (Effective August 1, 1978) Buildings and Personal Property (Replacement Cost) Liquor Stores Stock (Reporting Form) Equipment and Tools - All Risk Blanket ($50 Deductible) Personal Injury Liability (Aggregate) Contractual Liability (Each Occurrence and Aggregate) Liquor Liability (Each Common Cause and Aggregate) Incidental Malpractice Host Liquor Liability Comprehensive Glass and Neon Sign Coverage (Per Schedule Money Orders and Counterfeit Paper Currency Depositors Forgery Money and Securities (Broad Form Schedule) (Loss Inside and Loss Outside - Each Store Location) Mercantile Open Stock Burglary and Theft Store 111 Store 112 Warehouse (5735 Country Club Road) Village Hall Fire Legal (At Two Locations) Contractors Equipment - All Risk ($100 Deductible) Public Employees Blanket Bond (Honesty Blanket Position Bond Coverage) Scheduled Employee Dishonesty Endorsement - Treasurer I I I I I I Vehicle Fleet Policy (Effective August 1, 1978) Liability Uninsured Motorist Comprehensive Collision I Workmen's Compensation (Effective August 1, 1978) I I Public Official Liability Policy (Effective August 1, 1978) Umbrella Liability Policy (Effective August 1, 1978) Notary Bond (Effective June 21, 1973 - For Seven Years) Elsa Wiltsey I I I I I M.J.LONGCO. Part III Schedule 3 446,143 80,000 37,450 300,000 300,000 300,000 300,000 300,000 in Policy) 1,000 25,000 5,000 7,500 7,500 1,000 1,000 25,000 28,500 5,000 5,000 500,000 50,000 Actual Cash Value $150 Deductible 100,000 1,000,000 3,000,000 2,000 -52-