1992 - Comp. Annual Financial Report
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CITY OFSHOREWOOD, MINNESOTA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR .ENDED
DECEMBER 31, 1992
JAMES C. lIURM, CITY ADMINISTRATOR
REPORT PREPARED BY: DEPARTMENT OF FINANCE.'
ALAN J. ROLEK, FINANCE DIRECTOR/TREASURER
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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APlX)
March 11, 1993
CERTIFIED PUBLIC ACCOUNTANTS
AND CoNSULTANTS
Members of the City Council
City of Shorewood
Shorewood, Minnesota
In planning and performing our audit of the general purpose financial
statements of the City of Shorewood for the year ended December 31, 1992, we
considered its internal control structure in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and not to provide assurance on the internal control structure. We
noted certain matters involving the internal control structure and its
operation that we consider to be reportable conditions under standards
established by the American Institute of Certified Public Accountants.
Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the internal control
structure that, in our judgment, could adversely affect the City's ability to
record, process, summarize and report financial data consistent with the
assertions of management in the financial statements.
A material weakness is a reportable condition in which the design or operation
of one or more of the internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be
reportable conditions and, accordingly, would not necessarily disclose all
reportable conditions that are also considered to be material weaknesses as
defined above. We noted the following reportable conditions that we believe
to be material weaknesses.
Seqreqation of Duties
Our study and evaluation disclosed that because of the limited size of your
office staff, your organization has limited segregation of duties. A good
internal control structure contemplates an adequate segregation of duties so
that no one individual handles a transaction from inception to completion.
While we recognize that your organization is not large enough to permit an
adequate segregation of duties in all respects, it is important, however, that
you be aware of this condition.
Other Matters
The following are areas that came to our attention during the audit that we
feel should be reviewed:
Member of American Institute of Certified Public Accountants Private Companies Practice Section
115 EAST HICKORY STI\EET, SUITE 302
1'0. BOX 3166
MANKATO, MINNESOTA 56002.3166
(5071 625-2727
FAX (5071 388-9139
2M EAST PEARL STREET
P.O. BOX 345
OWAlDNNA, MINNESOTA lS060-0345
(507) 451.9136
FAX (5071451-<1794
1060 NORlllU\ND PLAZA
3800 WEST 80TH STI\EET
M1NNEAPOUS, MINNESOI:'. 55431
(612) 835-9090
FAX (612) 896-3620
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City of Shorewood
March 11, 1993
Page Two
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CERTIRED PuBLIC ACDJUNTANTS
AND CoNSULTANTS
General Fund
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The fund balance increased $5,439 to $1,257,632 at year end. The entire
fund balance is designated for working capital as it is needed to meet the
cash flow requirements of the General Fund. The fund balance at year end
of $1,257,632 is 54.6% of the actual 1992 expenditures and transfers out to
other funds.
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While the fund balance appears to be sufficient to meet the cash flow
requirements, it is important for the Council to periodic~lly review the
fund balance requirements.
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The fund balance has remained nearly constant the past three years as
summarized:
Year Ended
December 31,
Fund
Balance
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1992
1991
1990
$1 257 632
1 252 193
1 256 859
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It is important to maintain an adequate fund balance for the following
reasons:
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Expenditures are incurred somewhat evenly throughout the year. However,
property tax and state aid revenues are not received until the second
half of the year. An adequate fund balance will provide the cash flow
required to finance the General Fund expenditures.
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The City is vulnerable to legislative actions at the State and Federal
level. Recent years have seen the state continually adjusting the local
government aid and property tax credit formulas. An adequate fund
balance will provide a temporary buffer against those aid adjustments.
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Expenditures not anticipated at the time the annual budget was adopted
may need immediate Council action. These would include capital outlay
replacement, lawsuits and other items. An adequate fund balance will
provide the financing needed for such expenditures.
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A strong fund balance will assist the City in maintaining or improving
its bond rating.
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I APlX)
City of Shorewood ~
I March 11, 1993
Page Three
CERllRED Ptmuc AaxxwrANTS
AND O:lNSULTANTS
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A summary of the 1992 operations is as follows:
I Variance -
Favorable
Budqet Actual (Unfavorable)
I Revenue $2 161 438 $2 272 389 $110 951
Expenditures 1 826 638 1 775 350 51 288
Excess Revenue (Expenditures) 334 800 497 039 162 239
I Other Financing Sources (Uses)
Operating transfers in 35 000 35 000
Operating transfers out (532 000) (526 600) 5 400
I Total Other Financing
Sources (Uses) (497 000) (491 600) 5 400
I Excess of Revenue and Other
Financing Sources Over
(Under) Expenditures and
Other Uses $ (162 200) 5 439 $167 639
I Fund Balance, January 1 1 252 193
Fund Balance, December 31 $1 257 632
I A further detailed comparison of revenue and expenditures are as follows:
Percent Increase
I of (Decrease)
Revenue Source 1992 Total 1991 From 1991
General Property Taxes $1 576 158 68.31% $1 627 874 $(51 716)
I Intergovernmental
Revenue 283 689 12.29 153 681 130 008
Charges for Services 9 819 .42 3 635 6 184
Licenses and Permits 175 123 7.59 168 560 6 563
I Fines 89 960 3.90 101 200 (11 240)
Interest 86 206 3.74 101 333 (15 127)
Other Revenue 51 434 2.23 55 832 (4 398)
Transfers from Other
I Funds 35 000 1.52 25 000 10 000
Total Revenue and
Transfers $2 307 389 100.00% $2 237 115 $ 70 274
I Percent Increase
of (Decrease)
Proqram 1992 Total 1991 From 1991
I General Government $ 654 085 28.41% $ 665 152 $ (11 067)
Public Safety
Police 389 611 16.93 384 558 5 053
I Fire 95 398 4.14 88 527 6 871
Other 86 068 3.74 75 258 10 810
Public works 434 015 18.85 375 406 58 609
Parks and Recreation 116 173 5.05 142 168 (25 995)
I Transfers to Other Funds 526 600 22.88 510 712 15 888
Total Expenditures and
Transfers $2 301 950 100.00% 52 241 781 5 60 169
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City of Shorewood
March 11, 1993
Page Four
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CERllAED PuBUC AanJNTANTS
AND CoNSULTANTS
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Debt Service Funds
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In governmental accounting, the bonds to be paid from the resources of each
debt service fund are not accounted for within the same fund. The
following recap matches the assets of each debt service fund with the bonds
payable at year end.
Cash and Total Bonds
Investments Assets Payable
1971/72 Sewer Improvement $ 2 215 $ 2 287 $
1984 Improvement (1987
Refunding) 479 893 558 928 550 000
Shorewood Oaks 845 848 1 132 584 870 000
1974 Sewer Improvement 35 246 65 259 30 000
1991 Improvement and Refunding 339 848 1 026 001 960 000
Shady Hills Storm Sewer
Improvement 2 332 2 547 31 000
Total $1 705 382 $2 787 606 $2 441 000
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The remaining balance in the 1971 and 1972 Sewer Improvement Fund will be
used to pay fiscal agent fees in future years. The Shady Hills Storm Sewer
Improvement Bond will be paid from taxes collected in the special taxing
district.
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The remaining debt service funds should have sufficient assets to pay the
outstanding bonds. Some of these funds will soon have sufficient cash
balances to prepay the remaining bonds outstanding.
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We recommend the City review the call dates of the bonds outstanding for
Shorewood Oaks and the 1974 Sewer Improvement. Excess funds which will be
available in these debt service funds may be incorporated into the City's
long-range planning and capital improvements planning.
Capital Proiects Funds
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During 1991 and 1992, various capital projects funds have been established
in connection with the City's five year capital improvements plan. Each
year the CIP is updated to reflect actual balances available at year end
and changes in the City's plans and priorities.
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Enterprise Funds
Liquor Fund
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A brief comparison with prior years is as follows:
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1992
Store I
1991
1990
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Sales
Gross profit
Gross profit percentage
$577 225
116 320
20.15%
$606 845
131 725
21. 71%
$525 807
113 340
21. 56%
Operating income
$ 20 949
$ 39 675
$ 27 481
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city of Shorewood
March 11, 1993
Page Five
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CERTlFlED PullUC Acx:ouNTANTS
AND CoNSULTANTS
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Sales
Gross profit
Gross profit percentage
Store II
1992 1991 1990
$800 685 $848 487 $776 680
148 458 176 498 150 744
18.54% 20.80% 19.41%
$ 18 283 $ 47 833 $ 32 029
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Operating income
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Sales, gross profit, gross profit percentage and operating income all
decreased significantly in 1992.
We recommend the operations be reviewed in detail to analyze the following:
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The decrease in sales in both stores,
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The decrease in the gross profit percentage of each, and
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Water Fund
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A comparison of operations with prior years follows:
1992
1991
1990
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Charges for services $179 411
Permits, connection fees 20 480
Total revenue 199 891
Operating expenses, excluding
depreciation 125 714
Operating income before
depreciation $ 74 177
$149 088 $156 069
23 481 36 613
172 569
192 682
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126 614
116 289
$ 45 955 $ 76 393
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The cash deficit in the Water Fund was eliminated in 1990. The fund has
increased to a positive balance of $171,637 at December 31, 1992. The
bonds outstanding at year end total $55,000 and carry an interest rate of
8.5 percent. The bonds may be prepaid on any interest payment date with
thirty days notice.
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Sewer Fund
A comparison of operations with prior years follows:
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1992
1991
1990
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Charges for services $554 334 $474 451 $447 521
Permits, connection fees 5 800 6 500 8 400
Total revenue 560 134 480 951 455 921
Operating expenses, excluding
depreciation 457 114 393 194 346 015
Operating income before
depreciation $103 020 $ 87 757 $109 906
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City of Shorewood
March 11, 1993
Page Six
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CERTIRED Ptmuc ACXOUNTANTS
AND O:lNSULTANTS
Recyclinq Fund
This fund was established in 1991 to account for the City's recycling
activities. A comparison with the prior year is as follows:
1992 1991
Charges for services $ 70 981 $ 63 281
Operating expenses 63 436 58 580
Operating income S 7 545 S 4 701
Tax Increment Revenue Bonds
As explained in Note 14, page 22 of the annual report, the City has no
obligation beyond the tax increments collected to pay the Tax Increment
Revenue Bonds issued in 1991. However, in the review of the City's 1991
report in the GFOA Certificate of Achievement for Excellence in Financial
Reporting, it was strongly suggested that the Tax Increment Revenue Bonds
be included as a liability in the General Long-term Debt Account Group. As
a result of this suggestion, the 1991 balances included in the 1992 report
have been adjusted to reflect this change.
This also has an impact on the debt information in the Statistical Tables.
Be aware of this as you review the information in those tables.
Certificate of Achievement
The City will submit its 1992 financial report and participate in the
Government Finance Officer's Certificate of Achievement for Excellence in
Financial Reporting. The City's staff involved with this project should be
commended for their efforts on this project.
* * * * *
This report is intended solely for the use of management and Council. The
comments and recommendations in the report are purely constructive in nature,
and should be read in this context.
Our audit would not necessarily disclose all weaknesses in the system because
it was based on selected tests of the accounting records and related data.
If you have any questions or wish to discuss any of the items contained in
this letter, please feel free to contact us at your convenience. We wish to
thank you for the continued opportunity to be of service and for the courtesy
and cooperation extended to us by your staff.
Mk & EU
,
March 11, 1993
Minneapolis, Minnesota
ABDO, ABDO & EICK
Certified Public Accountants
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1992
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I. INTRODUCTORY SECTION
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Elected and Appointed Officials
Organizational Chart
Letter of Transmittal
II. FINANCIAL SECTION
II Independent Auditor's Report
General Purpose Financial Statements
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Combined Balance Sheet - All Fund Types and
Account Groups
Combined Statement of Revenue, Expenditures and
Changes in Fund Balance - All Governmental Fund
Types
Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual - General Fund
Combined Statement of Revenue, Expenses and
Changes in Retained Earnings - All Proprietary
Fund Types
Combined Statement of Cash Flows - All Proprietary
Fund Types
Notes to Financial Statements
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Combinino and Individual Fund and Account Group Financial
Statements and Schedules
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General Fund
Comparative Balance Sheet
Statement of Revenue, Expenditures and Changes
in Fund Balance - Budget and Actual
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Debt Service Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures
and Changes in Fund Balance
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Capital Projects Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures
and Changes in Fund Balance
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Enterprise Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenses and
Changes in Retained Earnings
Combining Statement of Cash Flows
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Water Fund
Comparative Balance Sheet
Comparative Statement of Revenue, Expenses and
Changes in Retained Earnings
Comparative Statement of Cash Flows
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Sewer Fund
Comparative Balance Sheet
Comparative Statement of Revenue, Expenses and
Changes in Retained Earnings
Comparative Statement of Cash Flows
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Exhibit
1
2
3
4
5
A-I
A-2
B-1
B-2
C-l
C-2
0-1
0-2
0-3
0-4
0-5
0-6
0-7
0-8
0-9
Paoe No.
I - VIII
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7 23
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25 - 28
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1992
Recycling Fund
Comparative Balance Sheet
Comparative Statement of Revenue, Expenses and
Changes in Retained Earnings
Comparative Statement of Cash Flows
Liquor Fund
Comparative Balance Sheet
Comparative Statement of Revenue, Expenses and
Changes in Retained Earnings
Comparative Statement of Cash Flows
Agency Funds
Statement of Changes in Assets and Liabilities
General Fixed Asset Account Group
Comparative Schedule of General Fixed Assets -
by source
Schedule of General Fixed Assets - by function
and activity
Schedule of Changes in General Fixed Assets -
by function
General Long-term Debt Account Group
Comparative Statement of General Long-term Debt
Schedule of Bonds Payable
Schedule of Debt Service Requirements
III. STATISTICAL SECTION
General Fund Expenditures and Other Uses by Function
General Fund Revenue and Other Sources by Source
Property Tax Levies and Collections
Assessed Valuation, Tax Levies and Mill Rates
Property Tax Mill Rates/Tax Capacity Rates -
Direct and Overlapping Governments
Principal Taxpayers
Special Assessment Levies and Collections
Computation of Legal Debt Margin
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt per Capita
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage
Property Value, Construction and Bank Deposits
Miscellaneous Statistics
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Exhibit Paqe No.
0-10 42
0-11 43
0-12 44
0-13 45
0-14 46
D-15 47
E-1 48
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F-1
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F-2
50
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F-3
51
G-1
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H-1
53
1-1
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2
3
4
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57
58
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8
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CITY OF SHO~WOOD, MINNESOTA
SECTION I
INTRODUCTORY SECTION
Elected Officials
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Warbara Brancel
Robert Gagne Jr.
Kristi stover
Robert Daugherty
Daniel Lewis
Appointed Officials
James C. Hurm
.Alan J. Rolek
(',
CITY OF SHORE~OOD ,MI~ESO'1'A
ELECTEDA~D APPOINTED dFFIC::V~S
DECEMBER .31., 1992.
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Term I
Exp~res
1992 I
1992
~992 I
1994
1994
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Mayor
Council Member
Council Member
Council Member
Council Member
City Administrator
Finance Director/Treasurer
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ORGANIZATIONAL CHART - CITY OF SHOREWOOD
VOTERS
I CITY ATTORNEY t--- CITY COUNCIL BOARDS
& COMMISSIONS
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, CITY ADMINISTRATOR - PLANNING COMMISSION
- PARK COMMISSION
- SENIOR HOUSING &
SERVICE TASK FORCE
LIQUOR ENGINEERING FINANCE ADMINISTRATION PLANNING PUBLIC PUBLIC SAFETY
(CONTRACT) & ZONING WORKS (CONTRACT)
-Off-Sale -Engineering Svc. -Personnel -General Government -Planning -Building & Grounds - Police - 4 City
Retail -Project Mgmt. -Accounting -Licensing -Zoning -Recycling (Contract) Joint Services.
-Payroll -Elections -Inspection -Tree Maintenance - Patrol
-Investments -Records -Property -Park Maintenance - Disaster Preparedness
-Billing -Legal Publications Records -Street Maintenance . Investigation
-Assessments .Public Information .Equipment Maintenance - Public Service
-Budgeting -Recreation Programs -Storm water System - Fire - Excelsiorl
.Computer System -Park Planning .Street Lighting Mound
.Purchasing (Contract) -Sanitation/Weeds . Fire prevention/
-Assessor (Contract) -Janitor Services firefighting
-Cable TV - (Contractl - Animal Control -
Joint Powers. -Utility Maintenance Chanhassen
(Contract)
· Mayor is City's representative on joint governing board.
April, 1992
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MAYOR
Barb Brancel
COUNCI L
Kristi Stover
Rob Daugherty
Daniel Lewis
Bruce Benson
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD - SHOREWOOD, MINNESOTA 55331-8927 -(612) 474-3236
April 28, 1993
Hanarable Mayar and Members of the City Cauncil
City of Shorewood, Minnesata
Councilmembers:
The, ComprehensiVe 1\.nnual Financia,l Repart af the City of Shorewood,
M.innesata for the t:iscal year xh.ded December 31, 1992, is hereby
submitted. Respansibilityfal:' both ,the acquracyafthe data, and
thEf,\completeness anq fairness af the presentption,' including all
disclosures, rests with the City. To. the best,af our knowleqge and
beli,ef, tl1e enclaseq /data ,is accurate in all Illaterial :tespects and
is reparted in a manner designated to. present fairly the 'financial
pasitian and resultsaf; aperations :af the various funds and accalmt.
graups of the City. All disclosures necessary t.o. enable the reader ~
to gain an understanding of the City's financial activities have
been included.
The Camprehehs~~e Annual Financial Report is presented in three
sectians: Introductary, Financial ,and Statistical. The
Intraductory seci:tion includes this transmittal letter,the City'S
arganizatianal chart and a list of City afficials. The Financial,
section includes the g~neral purpose financial statements and the
combining and individual fund and account group financial
stptements and SChedUles, along with the aUdi.tor's report an the
financial statements,. The statistical section includes selected
financial and demographic information, generally presen,ted an a
multi-year basis. .
Thearganizati9n, form and:cant~nts of this repartw~~e prepare~ in
accordance with the standards pres9ribed" by the Governmental
Accauntinc] Standards Baard, the <:;overnment Finance Officers
Associ.atian of:~he United states and Canaqa, the AIllerican Institute
afCertified PUblic Accountapts, and the Minnesata .state AUditor's
Office.
The funds ibc!1!ded, in aur Comprehensi veAnl1ual Financial Repart are
thase considered to. be 'within the aversight :tesponsibi:lity of the
City Cauncil. Th'e criteria Used in d~termining the reporting
eni:ity is cQ]1sistent, with thase ,jestablished by the Governmental
Accaunting Standards Board. Based on thesecri ter ia, a1).. funds.. and
accauntgro\lPS of the City are included in this report.:
A Residential Community on Lake Minnetqnka's South Shore
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Th~ cit}r ~rovides its r6sid~nts and businesses withe a full range of
muniC(ipalservices consisting of police, fire, p:ublic works, parks
andg~neral administratiye ser'{ices. The City also operates four
enterprises: a water utility, sewer utility, recycling \itility and,
an off~sal~ liquor operation, consi~ting of two store sites.
ECONOMIC CONDITION AND OUTLOOK
Theei ty of Sq.orewood is a suburb of the City of Minneapoli~ and is
located 25 mlle$ southwest of the centr,al business district on the
southern shore.o~ l1ake Mimletonka.. The City is pre<:1ominanttY a
residential colJUtlunitywith limited\commercial businesses and 'one
commercial shopping ,mall. The City, is 6 square miles in area arid
has an estimated population of 6~135.
/ \
While the City has e~p~'rienced an acceleratedrat,e 9f growth ip
residential developm~nt during the 1980's, the growth rate hqls
slowed in the 1990's. The City will continue to experience growth
in it's residential base in the fu~ure, but because of the limited
a~ailability of large tracts of land" this will come ata reduced
rate and likely will be smaller developments than in the past.
MAJOR INITIATIVES
FINANCIAL AND MANAGEMENT EMPHASIS
EMPHASIS ON GOVERNANCE
The City Council in its leadership role is effectivelY estaJ)lishing
a focus for city government in Shorewood. rhe Council has adopted
a strong set of values by which decisions are to be made. It has
adopted a statement of purpose and e$tablished overall goals and
expectations for the city. ',' It has. identified issues fac.j.ng the
City and prioritized them so that the staff can efficiently and
eff~ctively allocate time ~nd resources.
EMPHASIS ON SYSTEM IMPROVEMENTS
Thee City Council has adopted an open government policy and is
implementing it by televising City Council meetings, by improving
quarterly citizen newsletters and by directing 9i ty staff to
improve communication to those residents affect~d by projec}ts and
special assessments. A new more effecti ve schedulle of
communications to citizens is being implemented.
The City Council recognizes that its work consists of more than
responding to citizen requests and adopting an annual budget. The
City Council's calendar consists of, three phases. The first phase
i~\ Plan1:1ing, which includef3" employee and systems evaluations,
review of the pr~vious years work plan, review of the City's
ComptehensivePlan Executive Summary, review of the Statements of
Purpose and Values, and identification and prioritization of issues
for the next twelve and twenty-four months. '
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The second phase is that of Programming. Each year the five-year
Capi tal Improvement Program is reviewed and updated based upon
priorities established in phase one. In addition, any changes to
the Comprehensive Plan are made based upon the phase one decisions.
The third phase is Budgeting. The operating budget is established
based on decisions made in the first two phases. A revised budget
format was utilized for the 1993 budget process which provides
information and analytical data to the City Council and other
readers. It defines departmental missions and sets objectives for
the budget year. In addition, it measures services provided and
identifies the net affect each departmental budget has on property
taxes.
The Capital Improvement Budget is established as year one of the
five-year Capital Improvement Program. The City's five-year
Capital Improvement Program is a very important financial planning
document as it projects the City's capital improvement needs and
identifies financial resources to meet those needs. It clearly
identifies areas where policies are lacking and where problems may
arise in the future.
EMPHASIS ON PUBLIC IMPROVEMENTS
In 1992, the city, in conjunction with the state of Minnesota
Department of Transportation, completed construction of
intersection improvements on Highway 7 and Old Market Road. The
project included improvements to the service road along Highway 7,
the closure of five on-off ramps, storm sewer and retention ponds,
and the extension of water and sanitary sewer utility lines. These
improvements will be paid for with state Aid Funds and with
proceeds of tax increment revenue bonds issued in 1991. The City
also completed construction of a water treatment plant benefitting
the residents in the southeast area of the City.
Construction of a new Public Works facility and salt/sand storage
building was completed in 1992. The City is now undertaking
demolition of the old Public Works buildings and renovation of the
old site to better blend with the City Hall and Badger Park
environment.
Preparations were made to begin implementation of a surface water
management program through the establishment of a surface water
management utility. The first billing cycle for the new utility
will take place in the first quarter of 1993.
As was planned in the Park Capital Improvement Program, the
Silverwood Park grading and pond excavation project was completed
in 1992. The Park Commission has initiated work on a city-wide
park and trail improvement bond referendum question which will be
presented in a special election in Spring, 1993. The referendum
will allow for accelerated funding of planned park improvements
through general obligation bonds.
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EMPHASIS ON EFFICIENTLY, EFFECTIVELY MEETING SERVICE NEEDS
As one of fourteen Lake Minnetonka Area municipalities, the City of
Shorewood is involved in many contractual arrangements with other
jurisdictions and private enterprises, to deliver municipal
services to residents of the City. The City of Shorewood is
committed to working cooperatively with area governmental
jurisdictions to carefully consider optional methods to effectively
deliver public services as efficiently as possible.
FINANCIAL INFORMATION
INTERNAL CONTROLS
Management of the City is responsible for establishing and
maintaining an internal control structure in the accounting system
designed to ensure that the assets of the City are protected from
loss, theft or misuse and to ensure that fair, reliable and
accurate accounting data is compiled to allow for the preparation
of financial statements in conformity with generally accepted
accounting principles. The internal control structure is designed
to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes
that: 1) the cost of a control should not exceed the benefits; 2)
the valuation of costs and benefits requires estimates and
judgments by management. As part of the City's annual audit, the
internal control system is evaluated to the extent necessary for
audit purposes and changes are recommended when needed.
BUDGETING CONTROLS
The City maintains budgetary controls to ensure compliance with
legal provisions embodied in the annual appropriated budget
approved by the City Council. Activities of the general fund are
included in the annual appropriated budget. The level of budgetary
control is established at the fund level, but management control is
exercised at the line item level.
As demonstrated by the statements and schedules included in the
financial section of this report, the City continues to meet its
responsibility for sound financial management.
GENERAL GOVERNMENT FUNCTIONS
The following schedule presents a summary of General Fund and Debt
Service Fund revenues for the fiscal year ended December 31, 1992
and the amount of increases or decreases in relation to the prior
year's revenues.
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INCREASE
REVENUES AND OTHER (DECREASE)
FINANCING SOURCES AMOUNT % OF TOTAL FROM 1991
General Property Taxes $1,584,237 57.07% $ (44,008)
Licenses and permits 175,123 6.31 6,563
Intergovernmental 283,689 10.22 130,008
Charges for Services 9,819 .35 6,184
Fines and Forfeitures 89,960 3.24 (11,240)
Special Assessments 382,882 13.79 (106,071)
Interest on Investments 163,964 5.91 (49,569)
Miscellaneous 51,434 1.85 (62)
Proceeds of Bond Issue -0- -0- (273,956)
Operating Transfers In 35,000 1. 26 10,000
Total $2,776,108 100.00% $(332,151)
In 1992, intergovernmental revenue represented the single largest
increase in revenue. Because of deep cuts in aid to cities made by
the State of Minnesota in 1991, the City did not receive its full
allocation of Homestead and Agriculture Aid Credit for 1991. The
City received its full allotment for 1992, making this a much more
stable revenue source for the year. Other areas experiencing
increases for the year include licenses and permits and charges for
services. The permit area experienced an increase due to a large
project by the school district begun in the fall of 1992. A
greater than expected number of zoning applications was the primary
factor for increased revenue in charges for service.
General property taxes collected showed a decrease from 1991. This
is due to a freeze in the property tax levy for 1992 and slower
collections. Despite this decrease, the city Council continued its
plan to accumulate resources for future capital equipment and
improvement projects. These amounts were transferred to various
capital projects funds and will be applied to future equipment
acquisitions and capital improvements.
There were decreases in revenue in several categories. The
tumultuous drop in interest rates from the previous year and a
decline in excess cash caused a steep decline in interest revenue
in 1992.
Special assessment revenues also decreased by a large margin in
1992. The City has levied a minimal amount of special assessments
in recent years and assessment levies have expired, which decreases
the amount of special assessment revenue collected by the City.
The following table presents a summary of General Fund and Debt
Service Fund expenditures for the fiscal year ended December 31,
1992 and the amount of increases or decreases in relation to the
prior year's expenditures.
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INCREASE
EXPENDITURES AND (DECREASE)
OTHER USES AMOUNT % OF TOTAL FROM 1991
CURRENT:
General Government $ 654,085 19.39% $ (11,067)
Public Safety 571,077 16.93 22,734
Public Works 434,015 12.86 58,609
Parks and Recreation 116,173 3.44 (25,995)
Operating Transfers Out 526,600 15.61 15,888
DEBT SERVICE:
principal 905,000 26.82 615,000
Interest 167.163 4.95 (6.332)
TOTAL $3.374.113 100.00% $ 668.837
The debt service principal experienced a large increase in 1992
over 1991 due to a major bond refunding. Bonds were issued in 1991
to refund the 1986 Improvement Bonds, which were called in
February, 1992. Public Works expenditures showed a substantial
increase from 1991. This is mainly due to a large number street
and road repairs made necessary by a harsh winter in 1991-92, and
to wage increases. The increase in the public safety area was
primarily due to significant increases in fire contract amounts and
protective inspection costs.
General government expenditures decreased in 1992 due largely to
lower prosecution and legal fees during the year and to greater
control exercised over miscellaneous services. Park and
recreation expenditures decreased in 1992 mainly due to decreased
personnel costs and lower capital outlay.
GENERAL FUND BALANCE
The fund balance of the General Fund increased by $5,439 in 1992,
a difference of 0.43%. The fund balance as of December 31, 1992 is
$1,257,632. The fund balance is designated for working capital
requirements through the first six months of the year. It is
important for the city to maintain the existing fund balance as a
reserve to meet expenditures in the General fund until property tax
proceeds are received in July.
ENTERPRISE OPERATION
The City's enterprise fund activities for 1992 are summarized as
follows:
OPERATING OPERATING OPERATING
REVENUES EXPENSES INCOME (LOSS)
Water $199,891 $186,842 $ 13,049
Sewer 560,134 633,724 (73,590)
Recycling 70,981 63,436 7,545
Liquor - Store I 577,225 556,276 20,949
Store II 800,685 782,402 18,283
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Generally accepted accounting principles require the depreciation
of contributed assets, which results in net losses in some cases.
However, past and present City financial practice does not include
the recovery of such depreciation in the setting of utility rates,
which, in effect, would recover that cost a second time. The
City's utility rate setting is done with reference to the working
capital of the fund and assumes continued customer contributions
through special assessments.
DEBT ADMINISTRATION
As of December 31, 1992, the City's total debt outstanding totaled
$3,416,000. Of this total, $2,441,000 were general obligation
bonds issued to finance the construction of sanitary sewer, street,
water and storm sewer improvements. The repayment of these bonds
is provided through the proceeds of special assessments levied
against benefitted properties. Also included are $55,000 in
general obligation water revenue bonds issued for improvements to
the City water system, which will be repaid from Water Fund
revenues. A general obligation storm sewer improvement bond of
$31,000 was issued for storm sewer improvements within a special
storm drainage district. The repayment of these bonds will be
provided through an ad valorem tax levied against properties within
the storm drainage district.
Tax increment revenue bonds of $920,000 were issued for
construction of public improvements in the Water ford III
development which will be repaid from tax increments. Because
these revenue bonds are not backed by the full faith and credit of
the City, in the absence of tax increments from Tax Increment
Financing District No.1, the City has no obligation to repay the
bonds.
The City has maintained an "A" rating from Moody's Investor Service
on general obligation bond issues.
CASH MANAGEMENT
The city of Shorewood subscribes to the "pooled cash" concept of
investing which means that all funds with cash balances participate
in an investment pool. This permits some funds to be overdrawn and
other funds to show positive cash balances, with the City overall
maintaining a positive cash balance. This pooled cash concept
provides for investing of greater amounts of money at more
favorable rates. Interest earnings are then allocated to the
participating funds. During 1992, the City of Shorewood earned
$287,679 in interest revenue.
RISK MANAGEMENT
The City of Shorewood's worker's compensation insurance and its
general property and liability coverage are provided through the
League of Minnesota cities Insurance Trust (LMCIT). The LMCIT
worker's compensation program is a joint self-insurance plan
designed to lower and stabilize cities worker's compensation costs
and to assure that cities have a source of coverage available.
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Each participating city deposits with the LMCIT its worker's
compensation deposit premium for the policy year. The deposit
premium is calculated using standard manual rates with the
applicable volume discounts and experience modification factor.
From these deposits, LMCIT purchases reinsurance to protect the
program from catastrophic and abnormal payment claims. The balance
of the deposits and reserves are invested, with the earnings
accruing to the benefit of all participants. LMCIT's reserves and
rates are reviewed annually by an actuary to help assure that the
program remains financially strong.
OTHER INFORMATION
INDEPENDENT AUDIT
Minnesota state statutes require an annual audit of the City's
accounts by the Minnesota state Auditor or by independent certified
public accountants. The auditor's report on the general purpose
financial statements and schedules is included in the financial
section of this report.
ACKNOWLEDGMENTS
We would like to acknowledge the efforts of the city staff,
especially the Finance Department staff, and the City's independent
auditor, without whose assistance and cooperation the timely
preparation of the Comprehensive Annual Financial Report would not
have been possible.
Respectfully Submitted,
James C. Hurm
City Administrator
Alan J. Rolek
Finance Director/Treasurer
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CITY OF SHOREWOOD, MINNESOTA
SECTION II
FINANCIAL SECTION
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CERTIFIED PUBLIC ACCOUNTANTS
AND CoNSULTANTS
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INDEPENDENT AUDITOR'S REPORT
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Honorable Mayor and City Council
City of Shorewood, Minnesota
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We have audited the accompanying general purpose financial statements of the
City of Shorewood, Minnesota, for the year ended December 31, 1992 as listed
in the table of contents. These financial statements are the responsibility
of the City of Shorewood, Minnesota's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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We conducted our audit in accordance with generally accepted auditing
standards. 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 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 opinion.
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In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City
of Shorewood, Minnesota at December 31, 1992 and the results of its operations
and the cash flows of its Proprietary Fund Types for the year then ended, in
conformity with generally accepted accounting principles.
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Our audit was conducted for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The accompanying combining and
individual fund and account group financial statements and schedules listed in
the foregoing table of contents, which are also the responsibility of the
City's management, are presented for purposes of additional analysis and are
not a required part of the financial statements of the City. Such financial
statements and schedules have been subjected to the auditing procedures
applied in our audit of the general purpose financial statements and, in our
opinion, are fairly stated in all material respects when considered in
relation to the general purpose financial statements taken as a whole.
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~ta
()JJ1., , .
March 11, 1993
Minneapolis, Minnesota
ABDO, ABDO & EICK
Certified Public Accountants
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Member of American Institute of Certified Public Accountants Private Companies Practice Section
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115 EAST HICKORY STREET, SUITE 302
P.O. BOX 3166
MANKA TO, MINNESOTA 56002-3166
(507) 625-2727
FAX (507) 388-9139
204 EAST PEARL STREET
P.O. BOX 345
OWATONNA, MINNESOTA 55060.0345
(507) 451.9136
FAX (507) 451.0794
1060 NORTHLAND PLAZA
3800 WEST 80TH STREET
MINNEAPOLIS, MINNESOTA 55431
(612) 835-9090
FAX (612) 896-3620
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CITY OF SHOREWOOD, MINNESOTA
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose fmancialstatements and notes to the financial statements are intended to
provide an overview and broad perspective of the City's financial position and operations. These
statements present a summary set of in.formation needed to control and analyze current
operations to determine compliance with legal and ~udgetary limitations and to assist in financial
planning.
The following general purpose financial statements are presented:
Combined ~ance Sheet - . All Fund Types..an4 Account Groups
Combined Statement of Revenue, Expenditures and Changes in Fl.lnd Balance - All
Governmental Fund Types
Combined Statement of Revenue, Expenditures and Changes in F~nd Balance - Budget
and Actual - General Fund
Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All
Proprietary Fund Types
Combined. Statement of Cash Flows - All Proprietary Fund Types
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CITY OF SHOREWOOD, MINNESOTA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS I
DECEMBER 31, 1992
Governmental Fund Types I
Debt Capital
General Service Pro;ects
ASSETS AND OTHER DEBITS I
Cash and investments $1 256 778 $1 705 382 $781 909
Receivables
Taxes 107 095 95
Accounts 30 592 52 810 I
Accrued interest 29 695 29 436 15 070
Contract 92 229
Special assessments 957 1 052 693 25 038
Inventories, at cost I
Prepaid items
Property and equipment, net
Bond discount, net
Investments for deferred compensation I
plans, at market
Other debits
Amounts available
Amounts to be provided for general I
long-term debt
TOTAL ASSETS AND OTHER DEBITS $1 517 346 $2 787 606 $874 827
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LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES I
Accounts and contracts payable $ 48 857 $ $201 621
Salaries and compensated absences payable 10 102
Refundable deposits payable 25 825
Deferred revenue 174 930 1 042 577 16 741 I
Bonds payable
Deferred compensation funds held for
participants
TOTAL LIABILITIES 259 714 1 042 577 218 362 I
EQUITY AND OTHER CREDITS
Investment in general fixed assets I
Contributed capital
Retained earnings - unreserved
Fund balance
Reserved 1 742 742 I
Unreserved
Designated 1 257 632 2 287 659 228
Undesignated (2 763)
TOTAL EQUITY AND OTHER CREDITS 1 257 632 1 745 029 656 465 I
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS $1 517 346 $2 787 606 $874 827 I
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See Notes to Financial Statements. I
-2- I
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1992
General
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Special assessments
Interest on investments
Other
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Debt
Service
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Capital
proiects
$1 576 158 $ 8 079
175 123
283 689
9 819
89 960
$
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555 970
382 882
86 206 77 758
51 434
108 426
62 496
31 797
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TOTAL REVENUE
2 272 389
EXPENDITURES
Current
General government
Public safety
Public works
Parks and recreation
Capital outlay
Debt service
Principal
Interest and service charges
654 085
571 077
434 015
116 173
TOTAL EXPENDITURES
1 775 350
EXCESS REVENUE (EXPENDITURES)
OTHER FINANCING SOURCES (USES)
Proceeds of bonds issued
Operating transfers in
Operating transfers out
497 039
35 000
(526 600)
TOTAL OTHER FINANCING SOURCES
(USES)
(491 600)
EXCESS REVENUE AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES
5 439
FUND BALANCE, JANUARY 1
1 252 193
FUND EQUITY TRANSFER IN
FUND EQUITY TRANSFER (OUT)
FUND BALANCE, DECEMBER 31
468 719 758 689
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1 746 617
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905 000
167 163
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1 072 163 1 746 617
(603 444) (987 928)
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1 276 600
(760 000)
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516 600
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(603 444) (471 328)
2 314 486 1 161 780
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616 959
3 332
(582 972)
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$1 257 632 $1 745 029 $ 656 465
(37 319)
See Notes to Financial Statements.
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I Exhibit 2
Total
I (Memorandum Only)
1992 1991
$1 584 237 $1 628 245
I 175 123 168 560
839 659 153 681
9 819 3 635
89 960 101 200
I 491 308 628 067
226 460 273 559
83 231 77 816
I 3 499 797 3 034 763
I 654 085 665 152
571 077 548 343
434 015 375 406
I 116 173 142 168
1 746 617 1 571 145
905 000 290 000
I 167 163 173 495
4 594 130 3 765 709
I (1 094 333) (730 946)
1 905 121
I 1 311 600 555 712
(1 286 600) (510 712)
I 25 000 1 950 121
(1 069 333) 1 219 175
I 4 728 459 3 509 284
620 291
I (620 291)
$3 659 126 $4 728 459.
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CITY OF SHOREWOOD, MINNESOTA Exhibit 3
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 1992
Variance
Favorable
Budqet Actual (Unfavorable)
REVENUE
General property taxes $1 575 729 $1 576 158 $ 429
Licenses and permits 128 525 175 123 46 598
Intergovernmental 283 684 283 689 5
Charges for services 9 500 9 819 319
Fines and forfeitures 95 000 89 960 (5 040)
Miscellaneous
Special assessments
Interest on investments 52 000 86 206 34 206
Other 17 000 51 434 34 434
TOTAL REVENUE 2 161 438 2 272 389 110 951
EXPENDITURES
General government 673 246 654 085 19 161
Public safety 587 167 571 077 16 090
Public works 411 373 434 015 (22 642)
Parks and recreation 154 852 116 173 38 679
TOTAL EXPENDITURES 1 826 638 1 775 350 51 288
EXCESS REVENUE (EXPENDITURES) 334 800 497 039 162 239
OTHER FINANCING SOURCES (USES)
Operating transfers in 35 000 35 000
Operating transfers out (532 000) (526 600) 5 400
TOTAL OTHER FINANCING
SOURCES (USES) (497 000) (491 600) 5 400
EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES $ (162 200) 5 439 $ 167 639
FUND BALANCE, JANUARY 1 1 252 193
FUND BALANCE, DECEMBER 31 $1 257 632
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA Exhibit 4
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1992
OPERATING REVENUE
Sales
Less cost of sales
$1 377 910
1 113 132
264 778
804 726
26 280
1 095 784
163 511
15 231
17 163
238 433
7 344
134 674
1 051
20 757
13 570
48 368
376 668
45 159
7 216
20 403
1 109 548
(13 764)
13 630
2 298
61 219
30 365
(5 823)
101 689
87 925
(25 000)
62 925
735 725
S 798 650
GROSS PROFIT
Charges for services
Permits and connection fees
GROSS PROFIT AND REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Metropolitan Waste Control Commission disposal charges
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
OTHER REVENUE (EXPENSES)
General property taxes
Property tax credits
Interest on investments
Other income
Interest expense
TOTAL OTHER REVENUE (EXPENSES)
INCOME BEFORE TRANSFERS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1992
Exhibit 5
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Other income related to operations
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation and amortization
(Increase) decrease in assets -
Taxes
Accounts
Accrued interest
Special assessments
Inventory
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
$ (13 764)
30 365
238 433
76
(14 347)
(513)
374
10 946
(774 )
(27 238)
(4 475)
219 083
( 25 000)
(10 000)
(5 823)
(94 662)
15 928
(94 557)
61 219
160 745
1 003 217
$1 163 962
CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Bond principal paid
Interest paid on revenue bonds
Acquisition of property and equipment
Property taxes levied for debt service
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
$ 646 575
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Shorewood, Minnesota have been
prepared in conformity with generally accepted accounting principles (GAAP) as
applied to government units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant of the
government's accounting policies are described below.
A. Reportinq Entitv
In accordance with GASB pronouncements, the City's financial statements
include all funds, account groups, departments, agencies, boards,
commissions, and other organizations over which City officials exercise
oversight responsibility.
Oversight responsibility includes such aspects as appointment of governing
body members, budget review, approval of property tax levies, outstanding
debt secured by the City's full faith and credit or revenues, and
responsibility for funding deficits.
As a result of applying the entity definition criteria of the Governmental
Accounting Standards Board, certain organizations have been included or
excluded from the City's financial statements, as follows:
Excluded from the reporting entity:
Independent School District No. 276 and 277 (Minnetonka and Westonka
Public Schools)
The Districts, like all school districts in Minnesota, are completely
independent of any other governmental entity. They have their own elected
Board of Education, levy their own taxes and prepare their own financial
reports. Accordingly, the Districts are excluded from the reporting
entity.
B. Fund Accountinq
Fund accounting is designed to demonstrate legal compliance and to aid
financial management by segregating transactions related to certain
government functions or activities.
The accounts of the City are organized on the basis of funds and account
groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund
equity, revenue, and expenditures or expenses, as appropriate. Government
resources are allocated to and accounted for in individual funds based
upon the purpose for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped, in the
financial statements in this report, into five generic fund types and
three broad fund categories. The broad fund categories are governmental,
proprietary and fiduciary. Governmental funds account for all or nearly
all of a government's general activities, proprietary funds account for
enterprise activities, and fiduciary funds are used to account for assets
held on behalf of others. The fund types accounted for within each broad
fund category follow:
-7-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
GOVERNMENTAL FUNDS:
General Fund - The General Fund is the general operating fund of the
City and accounts for all revenues and expenditures not required to be
accounted for in another fund.
Debt Service Funds - Debt Service Funds are used to account for the
accumulation of resources for, and the payment of general long-term
debt principal, interest and related costs.
Capital Projects Funds - Capital Projects Funds are used to account
for all resources used for the acquisition or construction of major
capital facilities.
PROPRIETARY FUNDS:
Enterprise Funds - Enterprise Funds are used to account for operations
(a) that are financed and operated in a manner similar to private
business enterprises where the intent of the governing body is that
the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or
recovered primarily through user charges; or (b) where the revenue
earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control,
accountability, or other purposes.
FIDUCIARY FUNDS:
Agency Funds - Agency Funds are used to account for assets held by the
City on behalf of others as their agent.
The governmental fund types previously discussed are designed to account
for the financial flow of a particular fund; therefore, they generally
include only current assets and current liabilities on their balance
sheets. Their reported fund balance is considered a measure of available
spendable resources. The City also maintains two account groups for
noncurrent assets and liabilities. These account groups are concerned
only with the measurement of financial position. They are as follows:
General Fixed Assets Account Group - This separate account group
contains the fixed assets used in the governmental fund type
operations. They are assets of the City as a whole and not of
individual funds. Public domain general fixed assets consisting of
certain improvements other than buildings, including roads, curbs and
gutters, streets and sidewalks, drainage systems, are not capitalized
along with other general fixed assets. The assets are valued at
estimated historical cost or appraised value and no depreciation has
been provided on them.
General Long-term Debt Account Group - This separate account group
contains the long-term liabilities of the City expected to be financed
from governmental funds. They are liabilities of the City as a whole
and not of individual funds. The exception to this rule is for
proprietary fund type long-term debt which is accounted for in that
fund type.
All proprietary funds are accounted for on a cost of services or capital
maintenance measurement focus. Therefore, all assets and liabilities,
both Current and noncurrent, are included on their balance sheets. All
fixed assets are stated at historical or estimated historical cost.
-8-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
C. Basis of Accountinq
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The accounting and financial reporting treatment applied to a fund is
determined by its measurement focus. All governmental funds are accounted
for using a current financial resources measurement focus. With this
measurement focus, only current assets and current liabilities generally
are included on the balance sheet. Operating statements of these funds
present increases (i.e., revenue and other financing sources) and
decreases (i.e., expenditures and other financing uses) in net current
assets.
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All proprietary funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, all assets and all
liabilities associated with the operation of these funds are included on
the balance sheet. Fund equity (i.e., net total assets) is segregated
into contributed capital and retained earnings components. Proprietary
fund-type operating statements present increases (e.g., revenue) and
decreases (e.g., expenses) in net total assets.
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The modified accrual basis of accounting is used by all governmental fund
types and agency funds. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual (i.e., when they
become both measurable and available). "Measurable" means collectible
within the current period or soon enough thereafter to be used to pay
liabilities of the current period. The government considers property
taxes as available if they are collected within 60 days after year end.
Special assessments are recognized as revenue as the principal amount is
collected. Substantially all other sources of revenue are accrued.
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Expenditures are generally recorded when the related fund liability is
incurred except principal and interest on general long-term debt which are
recorded as fund liabilities when due.
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Proprietary funds are accounted for using the accrual basis of accounting.
Their revenue is recognized when it is earned, and their expenses are
recognized when they are incurred.
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Fixed assets are recorded in the proprietary funds at historical cost.
Depreciation is charged as an expense against operations and accumulated
depreciation is reported on proprietary fund balance sheets. Depreciation
has been provided over the estimated useful lives using the straight-line
method. The estimated useful lives are as follows:
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Furniture and equipment
Distribution and collection systems
5 - 10 years
40 years
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D. Budqets
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Budgets are adopted on a basis consistent with generally accepted
accounting principles. An annual appropriated budget is adopted for the
general fund. All annual appropriations lapse at fiscal year end.
Project-length financial plans are adopted for all capital projects funds.
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The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
1. Prior to January 1, the budget is adopted by the City Council.
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-9-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
2. Formal budgetary integration is employed as a management control
device during the year for the General Fund.
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3. Reported budget amounts are as originally adopted or as amended by
Council approved supplemental appropriations and budget transfers.
Supplemental budgetary appropriations were not material in 1992 in
relation to the original appropriation.
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E. Cash and Investments
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Cash and investments include demand deposits and short-term investments.
The City invests cash balances from all funds, to the extent available, in
certificates of deposit and other authorized investments. Investments are
carried at cost or amortized cost, except for investments in the deferred
compensation agency fund which are reported at market value.
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F. Cash and Cash Equivalents
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For purposes of the statement of cash flows, the Enterprise Funds consider I
all highly liquid investments with a maturity of three months or less when
purchased to be cash equivalents.
G. Inventories
Inventories are valued at cost, which approximates market, using the
first-in/first-out (FIFO) method.
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H. Prepaid Items
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Payments made to vendors for service that will benefit periods beyond
December 31, 1992 are recorded as prepaid items.
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I. Fixed Assets
General fixed assets are not capitalized in the funds used to acquire or
construct them. Instead, capital acquisition and construction are
reflected as expenditures in governmental funds, and the related assets
are reported in the general fixed assets account group. All purchased
fixed assets are valued at cost where historical records are available and
at an estimated historical cost where no historical records exist.
Donated fixed assets are valued at their estimated fair market value on
the date received.
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Public domain ("infrastructure") general fixed assets consisting of roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems and
lighting systems are not capitalized, as these assets are immovable and of
value only to the government.
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Assets in the general fixed assets account group are not depreciated.
Depreciation of buildings, equipment and vehicles in the proprietary fund
types is computed using the straight-line method.
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The costs of normal maintenance and repairs in the proprietary fund types
that do not add to the value of the asset or materially extend asset lives
are not capitalized. Improvements are capitalized and depreciated over
the remaining useful lives of the related fixed assets.
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-10-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
J. Compensated Absences
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Vested accumulated vacation or sick leave that is expected to be
liquidated with expendable available financial resources is reported as an
expenditure and a fund liability of the governmental fund that will pay
it. Amounts of vested or accumulated vacation leave that are not expected
to be liquidated with expendable available financial resources are
reported in the general long-term debt account group. No expenditure is
reported for these amounts. Vested or accumulated vacation leave of
proprietary fund types is recorded as an expense and liability of those
funds as the benefits accrue to employees. In accordance with the
provisions of Statement of Financial Accounting Standards No. 43,
Accounting for Compensated Absences, no liability is recorded for
nonvesting accumulating rights to receive sick pay benefits.
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K. Lonq-term Obliqations
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Long-term debt is recognized as a liability of a governmental fund when
due, or when resources have been accumulated in the debt service fund for
payment early in the following year. For other long-term obligations,
only that portion expected to be financed from expendable available
financial resources is reported as a fund liability of a governmental
fund.
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Long-term liabilities expected to be financed from proprietary fund
operations are accounted for in those funds.
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All long-term bonded debt, except the Tax Increment Revenue Bonds, issued
by the City is backed by the full faith and credit of the City. The
general obligation bonds include special assessment and revenue bonds,
which are intended to be repaid from revenue sources other than general
property taxes.
L.
Fund Equity
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Contributed capital is recorded in proprietary funds that have received
capital grants or contributions from developers, customers or other funds.
Reserves represent those portions of fund equity not appropriable for
expenditure or legally segregated for a specific future use. Designated
fund balances represent tentative plans for future use of financial
resources.
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M. Interfund Transactions
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Quasi-external transactions are accounted for as revenue, 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 recorded as expenditures/expenses in the reimbursing
fund and as reductions of expenditures/expenses in the fund that is
reimbursed.
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All other interfund transactions, except quasi-external transactions and
reimbursements, are reported as transfers. Nonrecurring or nonroutine
permanent transfers of equity are reported as residual equity transfers.
All other inter fund transfers are reported as operating transfers.
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-11-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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N. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned I
"memorandum only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial
position, results of operations or changes in financial position in
conformity with generally accepted accounting principles. Neither are I
such data comparable to a consolidation. Interfund eliminations have not
been made in the aggregation of this data.
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
O. Comparative Data
Comparative total data for the prior year has been presented in the
accompanying financial statements in order to provide an understanding of
changes in the government's financial position and operations. However,
comparative data have not been presented in all statements because their
inclusion would make certain statements unduly complex and difficult to
understand.
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Note 2: LEGAL COMPLIANCE - BUDGETS
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On or before the last Friday in August of each year, all agencies of the
government submit requests for appropriation to the City's administrator so I
that a budget may be prepared. The annual appropriated General Fund budget is
prepared by function and activity, and includes information on the past year,
current year estimates and requested appropriations for the next fiscal year.
The proposed budget is presented to the government's council for review. The II
government's council holds public hearings and may add to, subtract from or
change appropriations. Any changes in the annual appropriated General Fund
budget must be within the revenues and reserves estimated as available or the I
revenue estimates must be changed by an affirmative vote of a majority of the
government's council.
Expenditures may not legally exceed budgeted appropriations at the fund level. II
During the year, supplementary appropriations were not material.
Note 3: DEPOSITS AND INVESTMENTS
Cash surpluses are pooled and invested in certificates of deposit and
short-term government securities. Investment earnings are allocated to funds
on the basis of average cash balances. Investments are stated at cost, which
approximates market value, and are not identified with specific funds.
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Deposits
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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.
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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 (140% in the case of
mortgage notes pledged).
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Authorized collateral includes the legal investments described below, as well
as certain first mortgage notes, and certain other state or local government
obligations. Minnesota Statutes require that securities pledged as collateral
be held in safekeeping by the City treasurer or in a financial institution
other than that furnishing the collateral.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 3: DEPOSITS AND INVESTMENTS - CONTINUED
Balances at December 31, 1992:
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Bank
Balances
Carrying
Amount
Insured or collateralized by
securities held by the City or its
agent in the City's name
$2 360 209
$2 252 384
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Investments
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The City also invests idle funds, as authorized by Minnesota Statutes, in the
following:
a. Direct obligations or obligations guaranteed by the United States or
its agencies.
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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.
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c. Bankers acceptances of United States Banks eligible for purchase by
the Federal Reserve System.
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d. Commercial paper issued by United States corporations or their
Canadian subsidiaries, of the highest quality, and maturing in 270
days or less.
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e. 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, or certain Minnesota
securities broker-dealers.
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Balances at December 31, 1992:
Securities Credit Risk Cateqorv Carrying Market
Tvpe 1 2 3 Amount Value
U.S. Government $1 822 101 $ $ $1 822 101 $1 867 852
Commercial Paper 833 546 833 546 835 187
Total investments $1 822 101 $ $833 546 $2 655 647 $2 703 039
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The City's investments are categorized to give an indication of the level of
risk assumed at year end. Category 1 includes investments that are insured or
registered or for which the securities are held by the City or its agent in
the City's name. Category 2 includes uninsured and unregistered investments
for which the securities are held by the counterparty's trust department or
agent in the City's name. Category 3 includes uninsured and unregistered
investments for which the securities are held by the counterparty's trust
department or agent but not in the City's name.
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The following is a summary of the cash and temporary investments reported on
the combined balance sheet as of December 31:
Deposits
Investments
$2 252 384
2 655 647
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Total
$4 908 031
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-13-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
Note 4: RECEIVABLES
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A. Property Taxes
The City Council annually adopts a tax levy by December 28 and certifies I
it to the County for collection the following year. The County is
responsible for collecting all property taxes for the City. These taxes
attach an enforceable lien on January 1 on taxable property and is payable
in May and October each year. The taxes are collected by the County I
Treasurer and tax settlements are made to the City three times each year.
Taxes payable on homestead property, as defined by State Statutes, are
partially reduced by a homestead and agricultural credit aid. These
credits are paid to the City by the State of Minnesota in lieu of taxes
levied against homestead property. The State remits this credit in two
equal installments in July and December each year.
Allowances are provided for the full amount of delinquent taxes except
those collected by the County in November and December and remitted to the
City within sixty days after year end. The allowance is reported on the
balance sheet as deferred revenue.
B. Accounts Receivable
Accounts receivable include amounts billed for services provided before
year end.
C. Contract Receivable
The balance, together with 10% interest, is receivable in monthly
installments of $833 through April 1, 1993, at which time the balance of
$91,898 is due. The receivable is offset by deferred revenue and the
payments are recognized as revenue when received.
D. Special Assessments
Special assessments receivable include the following components:
o Delinquent - includes amounts billed to property owners but not
paid.
o
Deferred - includes assessment installments which will be billed
to property owners in future years.
Special assessments are recognized as a receivable and deferred revenue
when the assessments are certified to the County for collection. Special
assessments are recognized as revenue when received in cash.
-14-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
Note 5: FIXED ASSETS
The following is a summary of changes in the general fixed assets account
group during the year:
Balance Balance
January 1, December 31,
1992 Additions Retirements 1992
Land $ 449 326 $ $ $ 449 326
Buildings and
structures 504 781 852 089 105 000 1 251 870
Improvements other
than buildings 554 167 150 014 704 181
Furniture and equip-
ment 805 179 61 489 7 774 858 894
Total general fixed
assets $2 313 453 $1 063 592 $112 774 $3 264 271
A summary of proprietary fund property and equipment at December 31, 1992
follows:
Public utilities Liquor Funds
Water Sewer Store I Store II Total
Furniture and equipment $ 24 148 $ 36 661 $ 24 917 $ 9 161 $ 94 887
Collection and
distribution systems 2 915 343 7 130 794 10 046 137
Total 2 939 491 7 167 455 24 917 9 161 10 141 024
Less accumulated
depreciation (523 440) (3 384 103) (24 917) (8 267) (3 940 727)
Net property, plant
and equipment $2 416 051 $3 783 352 $ $ 894 $ 6 200 297
Note 6: LONG-TERM OBLIGATIONS
Long-term Obligations - Bonds
The following is a summary of changes in long-term bonded debt of the City for
the year ended December 31, 1992:
General Long-term Debt
Account Group
Special Tax Increment
Assessment Revenue Bond
Proprietary
Funds
Revenue Total
$ 65 000 $4 331 000
(10 000) (915 000)
$ 55 000 $3 416 000
Payable January 1, 1992
Debt retired
$3 346 000
(905 000)
$920 000
Payable December 31, 1992 $2 441 000
$920 000
-15-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
Note 6: LONG-TERM OBLIGATIONS - CONTINUED
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The long-term bonded debt obligations outstanding at December 31, 1992 are
summarized as follows:
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Types of Bonds
Maturities
Rate
General obligation special
assessment bonds
Tax increment revenue bonds
General obligation water
revenue bonds
1993 - 2003
1993 - 1997
4.50 - 8.00%
9.00
1993 - 1996
8.50
Total
Balance
December 31,
1992
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$2 441 000
920 000
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55 000
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$3 416 000
The annual requirements to amortize all bonded debt outstanding at December I
31, 1992, including interest payments totaling $1,092,415 are as follows:
Year Ending
December 31,
General Long-term Debt Proprietary
Account Group Funds
Special Tax Increment
Assessment Revenue Bond Revenue
1993
1994
1995
1996
1997
1998 - 2002
2003
$ 400 860
382 631
358 458
340 295
321 565
1 284 998
77 437
$3 166 244
$ 160 446
278 300
284 850
279 150
272 100
$ 14 675
18 825
17 550
16 275
Total
$1 274 846
$ 67 325
Total
$ 575 981
679 756
660 858
635 720
593 665
1 284 998
77 437
$4 508 415
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Long-term Obligations - Other
Changes in long-term obligations other than bonds are summarized as follows: I
Compensated
Absences I
Payable
Payable, January 1
Net change in compensated absences
Payable, December 31
Note 7: OPERATING LEASES
$ 16 910
2 544
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$ 19 454
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The City leases space for the two off-sale liquor store operations. These
leases are considered, for accounting purposes, to be operating leases. Lease
expense for the year ended December 31, 1992 amounted to $45,159. Future
minimum lease payments for these leases are as follows:
Years Ending
December 31,
Liquor
Store II
1993
$ 21 600
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The lease for Liquor Store I has expired and is currently being renegotiated.
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-16-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 8: FUND EQUITY
The various components of fund equity are contributed capital, retained
earnings, and fund balance.
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Contributed Capital - The amount represents the value of assets contributed to
the enterprise funds by other City funds. Additions during the year totalled
$646,575.
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Reserved Fund Balance - This represents the portion of fund balance which
cannot be appropriated for future expenditures. The following reservations
of fund equity have been made as of December 31, 1992:
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Bond reserve
1984 Improvement (1987 Refunding) $ 488 428
Shorewood Oaks 868 392
1974 Sewer Improvement 37 671
1991 Improvement and Refunding 345 704
Shady Hills Storm Sewer Improvement 2 547
Total Bond Reserve $1 742 742
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Designated Fund Balance - Designated amounts indicate tentative plans for
future uses of financial resources. The following unreserved fund balances
have been designated:
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General Fund
Designated for working capital
Debt Service Fund
1971 and 1972 Sewer Improvement - designated
for fiscal fees
Capital Projects Funds
Designated for capital projects
Capital Improvements
Park Capital Improvement
Waterford III Tax Increment Improvement
Equipment Replacement
Church Road Improvement
Silverwood Park Grading
Street reconstruction
$1 257 632
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2 287
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141 203
4 343
99 687
83 114
18 286
595
312 000
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Unreserved and undesignated amounts are available to finance current and
future years' expenditures.
Note 9: LEGAL COMPLIANCE
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Fund Deficits
The following funds have a deficit fund balance or retained earnings as of
December 31, 1992:
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Capital Projects Fund
Public works facility
Proprietary Fund
Water Fund
$ 2 763
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172 478
The deficits in the Public Works Facility and Water Fund will be eliminated by
future revenues.
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-17-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
Note 10: SEGMENT INFORMATION - PROPRIETARY FUNDS
Sales less cost of
sales of $460,905
and $652,227,
respectively $
Charges for services
Permits and connection
fees
Gross profit and
revenue
Expenses excluding
depreciation
Income before
depreciation
Depreciation
Operating income
(loss)
Other revenue (expenses)
General property
taxes
Property tax credits
Interest on
investments
Other income
Interest expense
Total other
revenue (expenses)
Income (loss) before
transfers
Operating transfers
to other funds
Net income
Water
179 411
20 480
199 891
125 714
74 177
61 128
13 049
13 630
2 298
7 616
7 829
(5 823)
25 550
38 599
Sewer
Recyclinq
$
$
554 334
70 981
5 800
560 134
70 981
457 114
63 436
103 020
176 610
7 545
(73 590)
7 545
36 392
21 420
57 812
(15 778)
7 619
10 000
$ 38 599 $ (15 778) $ 17 619
$ 212 347 $ 844 700 $ 22 812
Net working capital
Additions to property
and equipment
Bonds payable from
operating revenues
Total assets
Total equity
646 594
55 000
2 645 230
Note 11: DEFERRED COMPENSATION PLAN
2 584 132
94 662
4 637 995
26 489
Liquor
Store I
Liquor
Store II
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Total
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$
264 778
804 726
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4 628 052
22 812
$116 320
$148 458
26 280
1 095 784
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116 320
148 458
871 115
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224 669
238 433
(13 764) I
13 630
2 298
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95 371
129 480
61 219
30 365
(5 823)
101 689
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20 949
18 978
695
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87 925
(25 000) I
$ 62 925
$1 503 014
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20 949
18 283
741 256 I
55 000
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74
9 239
7 898
1 116
7 797 740
7 659 045
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74
9 239
9 014
The government offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all
employees, permits them to defer a portion of their salary until future years.
Participation in the plan is optional. The deferred compensation is not
available to employees until termination, retirement, death or unforeseeable
emergency.
-18-
30 188 27 297
(14 000) (21 000)
$ 16 188 $ 6 297
$190 273 $232 882
219 523
268 503
190 273
233 776
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 11: DEFERRED COMPENSATION PLAN - CONTINUED
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All amounts of compensation deferred under the plan, all property and rights
purchased with those amounts, and all income attributable to those amounts,
property or rights are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the City subject only to the
claims of the City's general creditors. Participants' rights under the plan are
equal to those of general creditors of the government in an amount equal to the
fair market value of the deferred account for each participant.
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The City has no liability for losses under the plan but does have the duty of due
care that would be required of an ordinary prudent investor. The City believes
it is unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
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The plan assets are on deposit with and managed by trustees other than the City.
Each employee has a choice of investment options within the plan.
Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE
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A. Plan Description
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All full-time and certain part-time employees of the City of Shorewood are
covered by a defined benefit pension plan administered by the Public Employee
Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) which is a cost-sharing multiple-employer
retirement plan. PERF members belong to either the Coordinated Plan or the
Basic Plan. Coordinated members are covered by Social Security and Basic
members are not. All new members must participate in the Coordinated Plan.
The payroll for employees covered by PERF for the year ended December 31,
1992, was $597,175; the City's total payroll was $718,386.
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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 average salary for
any five successive years of allowable service, age, and years of credit at
termination of service.
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Two methods are used to compute benefits for Coordinated and Basic 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 member is 2 percent of average salary
for each of the first 10 years of service and 2.5 percent for each remaining
year. For a Coordinated member, the annuity accrual rate is 1 percent of
average salary for each of the first 10 years and 1.5 percent for each
remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of
average salary for Basic members and 1.5 percent for Coordinated members.
For PERF members whose annuity is calculated using Method 1, a full annuity
is available when age plus years of service equal 90.
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There are different types of annuities available to members upon retirement.
A normal 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 reduce the monthly
normal annuity amount, because the annuity is 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.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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B. Contributions Required and Contributions Made
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Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. The City makes annual contributions to the pension plans
equal to the amount required by State Statutes. According to Minnesota
Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for
the PERF is the year 2020. As part of the annual actuarial valuation, PERA'sl
actuary determines the sufficiency of the statutory contribution rates
towards meeting the required full funding deadline. The actuary compares the
actual contribution rate to a "required" contribution rate. Current combined
statutory contribution rates and actuarially required contribution rates for I
the plans are as follows:
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Statutory Rates
Employees Employer
Required
Rates
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PERF (Basic and
Coordinated Plans)
4.41%
4.74%
9.95%
Total contributions made by the City during fiscal year 1992 were:
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Amounts
Employees Employer
Percentage of
Covered Payroll
Employees Employer
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PERF
S 25 261 S 26 753
4.23%
4.48%
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The City's contribution for the year ended June 30, 1992 to the PERF
represented .025 percent of total contributions required of all particiPatingl
entities.
C. Fundinq Status and Proqress
1. Pension Benefit Obligations
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The "pension benefit obligation" is a standardized disclosure measure of
the present value of pension benefits, adjusted for the effects of
projected salary increases and step-rate benefits, estimated to be
payable in the future as a result of employee service to date. The
measure, which is the actuarial present value of credited projected
benefits, is intended to help users assess PERA's funding status on a
going-concern basis, assess progress made in accumulating sufficient
assets to pay benefits when due, and make comparisons among Public
Employees Retirement Systems and among employers. PERA does not make
separate measurements of assets and pension benefit obligations for
individual employers.
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The pension benefit obligation as of June 30, 1992, is shown below:
(In thousands)
PERF
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Total pension benefit obligations
Net assets available for benefits, at cost
(Market Value for PERF = $4,068,082)
$4 868 124
3 933 124
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Unfunded pension benefit obligation
S 935 000
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 12: DEFINED BENEFIT PENSION PLAN - STATEWIDE - CONTINUED
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The measurement of the pension benefit obligation is based on an actuarial
valuation as of June 30, 1992. Net assets available to pay pension benefits
were valued as of June 30, 1992.
2. Changes in Benefit provisions
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Effective for the June 30, 1992, valuation, legislative activity since
the last actuarial valuation resulted in some minor changes in benefit
provision for the two funds. These changes did not have a significant
impact on the PERF or the PEPFF.
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D. Ten-Year Historical Trend Information
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Ten-year historical trend information is presented in PERA's Comprehensive
Annual Financial Report for the year ended June 30, 1992. This information
is useful in assessing the pension plan's accumulation of sufficient assets
to pay pension benefits as they become due.
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E. Related Partv Investments
As of June 30, 1992, and for the fiscal year then ended, PERA held no
securities issued by the City or other related parties.
I Note 13: ADVANCE REFUNDING AND DEFEASANCE OF DEBT
Advance Refundinq Issues - Prior Years
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On April 29, 1987, the City issued general obligation refunding bonds in the
amount of $875,000 to advance refund $1,250,000 outstanding 1984 general
obligation bonds. The proceeds of the refunding issue plus additional cash from
the debt service have been placed in an irrevocable escrow account and have been
invested in U.S. Government obligations. The maturities of these investments
coincide with the principal and interest payment dates of the refunded bonds and
have been certified to be sufficient to pay all principal and interest on the
refunded bonds when due, as required by applicable laws. Accordingly, the
original refunded bonds have been removed and the new advance refunding bonds are
reported on the financial statements. The City remains contingently liable in
the remote possibility that the escrow account is insufficient to pay the
refunded bonds. The balance of the refunded bonds outstanding at December 31,
1992 to be paid from the escrow is $755,000.
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During 1989, the City defeased the following bond issues:
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$2,300,000 G.O. Sewer Improvement Bonds dated June 1, 1972
$1,600,000 G.O. Sewer Improvement Bonds dated November 1, 1972
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The City provided the cash from the debt service funds which was placed in an
irrevocable escrow agreement and invested in U.S. Government Securities. The
maturities of these investments coincide with the principal and interest payment
dates of the defeased bond issues. Accordingly, the defeased bond issues are not
reported as a liability of the City. The City does, however, remain contingently
liable in the remote possibility that the escrow account is insufficient to pay
the defeased bonds. The balance of the bonds was paid from the escrow in 1992.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 14: TAX INCREMENT REVENUE BONDS
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During 1991, the City issued $920,000 Tax Increment Revenue Bonds. The proceeds
of the issue will be used to pay for public improvements stipulated in the
development agreements. The bond proceeds and related improvement costs are
reported in the Water ford III Tax Increment Improvement Capital Projects Fund.
The bonds were issued at par value not to exceed $920,000. The bonds are not a
general obligation of the City and are not backed by the full faith and credit or
taxing powers of the City. The bonds are payable solely from the tax increments I
from the City's Tax Increment Financing District No.1. In addition, upon
completion of the project, all excess bond proceeds will be repaid to the holder
of the bonds as principal reduction. Interest at a rate of nine percent will
accrue from the date of issuance of the bonds but will not be payable until tax
increment is available at which time the increment will first be applied to the
accrued interest.
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The bonds payable are reported as a liability in the General Long-term Debt .1
Account Group in the financial statements even though:
· The bonds issued are tax increment revenue bonds.
.
The bonds are not backed by the full faith and credit of the City.
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· The bonds will be repaid only to the extent that tax increments are
from the Tax Increment Financing District.
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Note 15: JOINT POWERS AGREEMENT
The City of Shorewood participates in a joint powers agreement with the cities ofl
Excelsior, Greenwood, and Tonka Bay which establishes the South Lake Minnetonka
Public Safety Department for the purpose of providing police protection within
the four communities. The agreement creates a coordinating committee, comprised
of the mayors of each participating community, as the governing bOdy, which meets I
quarterly. Each year the Coordinating committee adopts an operating budget,
which is approved by all participating cities. The cost of the budget is divided
between the participating cities based upon a five-year average demand for
service in each city. The percentage contributed in 1992 by the City of I
Shorewood is 41.9%.
Any budget shortfall is made up first from department reserves,
shortfall assessed to each participating community according to
current agreement continues through December 31, 1997.
with any excess
the formula. The I
The Department has accounts payable, and accrued payroll and compensated absences
in the General Fund of $124,579, and deferred compensation benefits payable in I
the Agency Fund of $93,986 at year end. There is no other current or long-term
debt outstanding as of December 31, 1992. The following is a summary of the
Department's balance sheet as of December 31, 1992 and the statement of revenue,
expenditures and changes in fund balance for the General Fund for the year ended I
December 31, 1992.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1992
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Note 15: JOINT POWERS AGREEMENTS - CONTINUED
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SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1992
General Totals
General Agency Fixed (Memorandum Onlv)
Fund Fund Assets 1992 1991
Total assets $221 482 $ 93 986 $282 516 $597 984 $559 154
Liabilities $124 579 $ 93 986 $ $218 565 $202 727
Fund equity 96 903 282 516 379 419 356 427
Total liabilities and
fund equity $221 482 $ 93 986 $282 516 $597 984 S559 154
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SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 1992
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1992 1991
Variance -
Favorable
Budqet Actual (Unfavorable) Actual
Total revenue $1 000 600 $1 034 892 $ 34 292 $991 016
Total expenditures 1 020 600 999 055 21 545 992 603
Excess of revenue over
(under) expenditures $ (20 000) 35 837 $ 55 837 (1 587)
Fund balance,
January 1 61 066 62 653
Fund balance,
December 31 $ 96 903 $ 61 066
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Note 16: PRIOR YEAR MODIFICATIONS
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Certain 1991 balance sheet items have been reclassified in order to conform to
the 1992 presentation. These reclassifications do not cause any change to 1991
operating results. The Tax Increment Revenue Bonds were not included in the
General Long-term Debt Account Group in 1991. To conform to the 1992
presentation, the 1991 bonds payable have been restated accordingly.
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CITY OF SHOREWOOD, MINNESOTA
THE GENERAL FUND
The General Fund is used to accou~t forresources\ traditionally associated with
government which are not required legally or by sound financial management to be
accounted for in other funds. It normally receives a greater va.r;iety and number of taxes
and other general revenues than any other fund. The majority of. the current day-to-day
operations will be financed from this fund.
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-I
GENERAL FUND
BALANCE SHEET
DECEMBER 31, 1992 AND 1991
1992 1991
ASSETS
Cash and investments $1 256 778 $1 259 065
Receivables
Taxes 107 095 114 469
Accounts 30 592 9 803
Accrued interest 29 695 35 590
Contract 92 229 92 970
Special assessments
Delinquent 2 830
Deferred 957
TOTAL ASSETS $1 517 346 $1 514 727
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable $ 48 857 $ 32 667
Salaries payable 10 102 27 583
Refundable deposits payable 25 825 31 250
Deferred revenue 174 930 171 034
TOTAL LIABILITIES 259 714 262 534
FUND BALANCE
Unreserved
Designated for working capital 1 257 632 1 126 793
Designated for equipment and improvements 125 400
TOTAL FUND BALANCE 1 257 632 1 252 193
TOTAL LIABILITIES AND FUND BALANCE $1 517 346 $1 514 727
-24-
CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1992
(With comparative amounts for the year ended December 31, 1991)
1992 1991 I
Variance
Favorable I
Budqet Actual (Unfavorable) Actual
REVENUE
General property taxes
General property taxes $1 493 644 $1 493 111 $ (533) $1 538 982 I
Fiscal disparities 82 085 82 085 78 383
Forfeit tax sales 929 929 9 195
Penalties and interest 33 33 1 314
Total 1 575 729 1 576 158 429 1 627 874 I
Licenses and permits
Business 10 025 11 100 1 075 8 700 I
Nonbusiness 118 500 164 023 45 523 159 860
Total 128 525 175 123 46 598 168 560
Intergovernmental I
State
Property tax credits 264 934 264 934 137 426
Other 18 750 18 755 5 16 255 I
Total 283 684 283 689 5 153 681
Charges for services I
General government 9 000 9 311 311 3 111
Parks and recreation 500 508 8 524
Total 9 500 9 819 319 3 635 I
Fines 95 000 89 960 (5 040) 101 200
Other revenue I
Special assessment 4 336
Interest on investments 52 000 86 206 34 206 101 333
Other 17 000 51 434 34 434 51 496
Total 69 000 137 640 68 640 157 165 I
TOTAL REVENUE 2 161 438 2 272 389 110 951 2 212 115
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-25- I
I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND Continued
I STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31, 1992
(With comparative amounts for the year ended December 31, 1991)
I 1992 1991
Variance
I Favorable
Budqet Actual (Unfavorable) Actual
EXPENDITURES
General government
I Mayor and Council
Personal services $ 10 170 $ 10 628 $ (458) $ 10 065
Supplies 400 422 (22) 1 481
Other services and charges 37 528 37 036 492 38 703
I Contingency 40 556 40 556
capital outlay 600 600
Total 89 254 48 686 40 568 50 249
I Administrator
Personal services 87 405 81 724 5 681 78 796
Supplies 774 762 12 743
I Other services and charges 6 655 5 746 909 5 685
Capital outlay 1 500 1 496 4
Total 96 334 89 728 6 606 85 224
I Finance
Personal services 76 505 72 320 4 185 69 083
Supplies 3 460 3 864 (404) 2 629
I Other services and charges 5 425 4 851 574 3 938
Capital outlay 299
Total 85 390 81 035 4 355 75 949
I Professional services
Supplies 800 589 211 1 092
Other services and charges 141 381 167 823 ( 26 442) 180 016
I Total 142 181 168 412 ( 26 231) 181 108
Planning and zoning /"
I Personal services ~4 145 79 828 (15 683) 64 509
Supplies / 1 490 1 685 (195) 917
Other services and charges 6 785 5 401 1 384 5 343
Capital outlay 7 700 7 518 182 424
I Total 80 120 94 432 (14 312 ) 71 193
Municipal building
I Supplies 8 300 6 581 1 719 2 556
Other services and charges 89 600 74 968 14 632 88 394
Capital outlay 300 6 693 (6 393) 4 695
I Total 98 200 88 242 9 958 95 645
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I
GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31, 1992
(With comparative amounts for the year ended December 31, 1991)
1992 1991 I
Variance
Favorable I
Budqet Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED
General government
Other general government I
services
Personal services $ 57 252 $ 63 949 $ (6 697) $ 75 137
Supplies 13 295 12 020 1 275 12 682
Other services and charges 11 220 7 581 3 639 17 965 I
Total 81 767 83 550 0 783) 105 784
Total general government 673 246 654 085 19 161 665 152 I
Public safety
Police protection
Supplies 500 430 70 I
Other services and charges 391 836 389 181 2 655 383 058
Capital outlay 1 500
Total 392 336 389 611 2 725 384 558 I
Fire protection
Other services and charges 95 398 95 398 88 527
Protective inspection I
Personal services 67 318 56 604 10 714 51 285
Supplies 1 765 1 884 (119 ) 561
Other services and charges 24 350 21 580 2 770 23 412 I
Capital outlay 6 000 6 000
Total 99 433 86 068 13 365 75 258
Total public safety 587 167 571 077 16 090 548 343 I
Public works
General maintenance I
Personal services 112 146 141 608 (29 462) 110 753
Supplies 35 050 29 124 5 926 7 123
Other services and charges 15 200 13 476 1 724 40 784
Capital outlay 9 092 (9 092) 25 015 I
Total 162 396 193 300 (30 904) 183 675
Streets and roadways I
Personal services 82 814 76 708 6 106 67 983
Supplies 62 000 60 198 1 802 16 540
Other services and charges 4 100 2 248 1 852 2 030
Capital outlay 24 005 ( 24 005) 6 980 I
Total 148 914 163 159 04 245) 93 533
Snow and ice removal I
Personal services 22 066 12 971 9 095 29 761
Supplies 13 000 12 882 118 12 350
Total 35 066 25 853 9 213 42 111 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31, 1992
(With comparative amounts for the year ended December 31, 1991)
1992 1991
Variance
Favorable
(Unfavorable)
Budqet Actual
EXPENDITURES - CONTINUED
Public works
Traffic control
Supplies
Other services and charges
$ 5 500 $ 3 505
29 500 23 916
Total
35 000
Sanitation and waste removal
Personal services
Other services and charges
610
4 000
Total
4 610
Tree maintenance
Personal services
Other services and charges
13 187
12 200
Total
25 387
Total public works
411 373
Parks and recreation
Personal services
Supplies
Other services and charges
Capital outlay
85 802
20 850
33 450
14 750
Total parks and
recreation
154 852
TOTAL EXPENDITURES
1 826 638
EXCESS REVENUE (EXPENDITURES)
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
334 800
35 000
(532 000)
TOTAL OTHER FINANCING
SOURCES (USES)
(497 000)
EXCESS REVENUE AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
$ ( 162 200)
FUND BALANCE, JANUARY 1
FUND BALANCE, DECEMBER 31
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27 421
2 886
3 174
6 060
6 315
11 907
18 222
434 015
64 610
20 120
25 344
6 099
116 173
1 775 350
497 039
35 000
(526 600)
(491 600)
5 439
1 252 193
$1 257 632
Actual
$ 1 995
5 584
$ 3 059
22 841
7 579
25 900
(2 276)
826
1 508
4 007
(1 450)
5 515
6 872
293
13 320
11 352
7 165
24 672
(22 642)
375 406
21 192
730
8 106
8 651
78 141
10 645
25 732
27 650
38 679
142 168
51 288
1 731 069
162 239
481 046
5 400
25 000
(510 712)
5 400
(485 712)
$ 167 639
(4 666)
1 256 859
$1 252 193
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CITY/OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
Debt service funds are used toacCo\lnt for the payment of interest and principal on 1011g-
term general obligation d~bt othel'than debt issued for andiserviced primarily by
enterprise funds.; ,
1'984 Im,proveinent (1987 Refundine) Fund - This fund was,established to account for
the accumulation of resources for the payment of interest and principal on bonds~ issued
for 1984 street and utility improvtfrnents..i )
,/ i j".. ,:' "" .. .... , .. ..'", ".." ,:,,~,'I .. \,.. " ____ '
~horewood".Oaks Fund j- This fund was established to a<;count for the accumulation of
resour~ for thepayment?f interest and principal ,on bonds issu~ for street and ~tiIity
improvements in the Shore~ood ()al{~, development.
1971 and 19'7~ Sewer Improvement Fund -This fund wasestablisped tQ account for
the accumulation of resources' for (the payme(lt of in~restand principal on bonds issued
for 1971 ,and 1972 sanitary sewer improvements.
1974 Sewer Improvement F)Jnd' - 'This fund /was established to account, for th((J
accumulation of resources for th~ payment of in~I'est and principal on bonds issu~ for
1974 sanitary sewerimprovemerlts. ~.
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,. " \, (' ',_- \,) ,'.. ,," ".'_" .. i .. "" (,_" .. """_,' ,) ':,
Southeast Water (1986 Improvement) Fund- This fund wa$estabIished to ~ccount for
the accumulation of re&ources for the payment CJt inter~st Cijld principal on bonds issued
fo(;1986 water improvements in the Southeast area of the City. ,',
, '\1
"
)1991 Im,provement and R~UDdille JUnd rThisfuq.d was established to accCJunt( for,tije
accumulation of resources for the payment ofjnterest ~d ptincipal' on bO{lds. issued for
the SEwater tr~tm~l!t plant, Pine Bend ~mprovements; C~ur9h Road improvements, and
tq refund the 1986 i11J.prove~entbonds on the call date.' '
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ShadyiHilIs St9rm SeweriIm,provement FUnd - Th~s fund' was established to account
for the, accutpulation of resources for payment of interest and principal oUI/bonds issued
Jor the Shady :ijills S!<>rm Sewer Improvements. '
" '--'.. ,",' \ j' ,
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1992
(With comparative totals as of December 31, 1991)
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ASSETS
Cash and investments
Receivables
Taxes
Accrued interest
Special assessments
Delinquent
Deferred
1984
Improvement
(1987
Refundinq)
1971 and
1972
Sewer
Shorewood Oaks Improvement
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$479 893
$ 845 848 $ 2 215
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8 535
14 256 72
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70 500
40 927
231 553
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TOTAL ASSETS
$558 928
$1 132 584 $ 2 287
LIABILITIES AND FUND BALANCE
LIABILITIES
Deferred revenue
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$ 70 500
$ 264 192
$
FUND BALANCE
Reserved for debt service
Unreserved - designated for fiscal
fees
488 428
868 392
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2 287
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TOTAL FUND BALANCE
488 428
868 392
2 287
TOTAL LIABILITIES AND
FUND BALANCE
$558 928
$1 132 584
$ 2 287
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I Exhibit 8-1
I Southeast 1991
1974 Water Improvement Shady Hills
Sewer (1986 and Storm Sewer Total
I Improvement Improvement) Refundinq Improvement 1992 1991
$ 35 246 $ $ 339 848 $ 2 332 $1 705 382 $2 265 477
I 95 95 26
948 5 505 120 29 436 39 550
2 569 1 110 44 606 3 534
I 26 496 679 538 1 008 087 1 150 939
$ 65 259 $ $1 026 001 $ 2 547 $2 787 606 $3 459 526
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$ 27 588 $ $ 680 297 $ $1 042 577 $1 145 040
I 37 671 345 704 2 547 1 742 742 2 311 859
I 2 287 2 627
37 671 345 704 2 547 1 745 029 2 314 486
I $ 65 259 $ $1 026 001 $ 2 547 $2 787 606 $3 459 526
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31, 1992
(With comparative totals for the year ended December 31, 1991)
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REVENUE
General property taxes
Miscellaneous
Special assessments
Interest on investments
1984
Improvement
(1987
Refundinq)
1971 and
1972
Sewer
Shorewood Oaks Improvement
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$
$ $
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17 819
23 534
137 049
43 394 125
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TOTAL REVENUE
41 353
180 443
125
EXPENDITURES
Debt Service
Principal
Interest and service charges
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65 000
35 923
85 000
59 014
465
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TOTAL EXPENDITURES
100 923
144 014
465
EXCESS REVENUE (EXPENDITURES)
OTHER FINANCING SOURCES (USES)
Proceeds of bonds issued
(59 570)
36 429
(340)
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EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES
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FUND BALANCE, JANUARY 1
(59 570)
547 998
36 429
(340)
831 963
2 627
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FUND EQUITY TRANSFER
$488 428
$868 392
$ 2 287
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FUND BALANCE, DECEMBER 31
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I Exhibit B-2
I Southeast 1991
1974 Water Improvement Shady Hills
Sewer (1986 and Storm Sewer Total
I Improvement Improvement) Refundinq Improvement 1992 1991
$ $ $ $ 8 079 $ 8 079 $ 371
I 20 337 207 677 382 882 484 617
1 967 8 663 75 77 758 112 200
22 304 216 340 8 154 468 719 597 188
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30 000 725 000 905 000 290 000
I 3 878 65 608 2 275 167 163 173 495
33 878 790 608 2 275 1 072 163 463 495
I (11 574) (574 268) 5 879 (603 444) 133 693
273 956
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(11 574) (574 268) 5 879 (603 444) 407 649
I 49 245 579 640 303 013 2 314 486 1 906 837
(579 640) 616 959 (3 332) 33 987
I $ 37 671 $ $345 704 $ 2 547 $1 745 029 $2 314 486
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CITY OF SHOREWOQD, MINNESOTA
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major
capital facilities other than. those financed by enterprise funds.
Street Reconstruction Fund - This fund was established for the purpose of funding the
periodic reconstruction of City streets and roadways.
Capital ~J)rovements Fund - This fund was established to account for various capital
improvement projects which may be financed without the need to issue bonds.
ParkCaPltal Improvement Fund - This fund accounts for park land acquisition and
other capital improvements in the City parks.
Waterfor~ III Tax Increment Improvement Fupd - This fund was established to
account for proceeds oitax increment bonds sold for the construction of an intersection
at Sta~ Trunk Highway 7 and Old Market Road and accompanying improvements within
Tax Increment DistrictNo. 1.
Equipment Rep~cement Fund - This f~nd was established for the purpose of funding
the replacement of capital equipment.
Public W orb F~cility Fund - This fund was established to account for the construction
of a public works facility and salt-sand building, and accompanying site improvements.
SE Water. Treatment Plant Construction Fund - This. fund was established to account
for the proceeds of bonds sold for the construction of a water treatment plant in the
southeast area of the City.
Pine Bend Improvement F)md - This, fund was established to account for the proceeds
of bonds sold for the construction of Pine Bend improvements.
Church Road Improvement Fund - . This fund was established tb account for the
proceeds of bonds sold for the construction of Church Road improvements.
I ' . ... ,
Shady Hills Storm Sewer Improvement ~nd - This fund was established ito account
for the proceeds of bonds sold for the construction of Shady HillsStorrri Sewer
improvements.
SilverwoodPark Gradine Fund - This. fund. \Vasestabl~shed to account for the
construction of a pond and for site grading in Silverwood Park.
CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1992
(With comparative totals as of December 31, 1991)
Water ford
Park III Tax
Street Capital Capital Increment Equipment
Reconstruction Improvements Improvement Improvement Replacement
ASSETS
Cash and investments $312 000 $123 020 $ 3 445 $127 723 $ 81 470
Receivables
Accounts 52 810
Accrued interest 9 886 898 679 1 644
Special assessments
Delinquent 25 038
Deferred
TOTAL ASSETS $312 000 $157 944 $ 4 343 $181 212 $ 83 114
LIABILITIES AND FUND
BALANCE
LIABILITIES
Accounts and
contracts payable $ $ $ $ 81 525 $
Deferred revenue 16 741
TOTAL
LIABILITIES 16 741 81 525
FUND BALANCE
Unreserved
Designated 312 000 141 203 4 343 99 687 83 114
Undesignated
TOTAL FUND
BALANCE 312 000 141 203 4 343 99 687 83 114
TOTAL
LIABILITIES
AND FUND
BALANCE $312 000 $157 944 $ 4 343 $181 212 $ 83 114
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-31-
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I Exhibit C-1
I SE Water
Public Treatment Shady Hills
Works Plant Pine Bend Church Road Storm Sewer Silverwood Total
I Facilitv Construction Improvement Improvement Improvement Park Gradinq 1992 1991
$ 81 879 $ $ $ 22 632 $ $ 29 740 $781 909 $1 208 873
I 52 810
1 963 15 070 18 121
25 038 24 174
I 100 010
$ 81 879 $ $ $ 24 595 $ $ 29 740 $874 827 $1 351 178
I
I $ 84 642 $ $ $ 6 309 $ $ 29 145 $201 621 $ 69 392
16 741 120 006
I 84 642 6 309 29 145 218 362 189 398
I 18 286 595 659 228 1 161 780
(2 763) (2 763)
I (2 763) 18 286 595 656 465 1 161 780
I $ 81 879 $ $ S 24 595 $ S 29 740 $874 827 $1 351 178
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I -31-
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I Exhibit C-2
I SE Water
Public Treatment Shady Hills
Works Plant Pine Bend Church Road Storm Sewer Silverwood Total
I Facilitv Construction Improvement Improvement Improvement Park Gradinq 1992 1991
$ $ $ $ $ $ $ 555 970 $
I 108 426 139 114
7 736 4 803 1 960 7 876 410 62 496 60 026
30 747 18 750
I 1 050 70
7 500
7 736 4 803 1 960 7 876 410 758 689 225 460
I
73 782 8 146 4 895 31 691 1 608 4 977 189 533 360 417
I 876 719 20 162 42 887 100 310 11 442 54 428 1 557 084 1 210 728
950 501 28 308 47 782 132 001 13 050 59 405 1 746 617 1 571 145
I (942 765) (23 50S) (45 822) C124 125) C12 640) (59 405) (987 928){1 345 685)
I 1 631 165
700 000 60 000 1 276 600 530 712
(760 000)
I 700 000 60 000 516 600 2 161 877
I (242 765) (23 50S) (45 822) (124 125) (12 640) 595 (471 328) 816 192
I 240 002 60 187 46 459 142 411 9 308 1 161 780 345 588
(36 682) (637) 3 332 (33 987)
I $ (2 763) $ $ $ 18 286 $ $ 595 $ 656 465 $1 161 780
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CITY OF SBOREWOOD, MINNESOTA
'\,
ENTERPRISE FUNDS
EntefPri~ funds are used to account for operations that are financed arid. o~rated in a
"manner similar to private b~siness,.where the costs of providing services to the g~neral
p~blic are fm~ced primarily, through u~r charges. ' I
Water Fund - This fund is used to account for the activities of the City water system.
;1
Sewer Fund - This fund isu~ to aCcount for the activities of the City/sanitarY se~r
I, ", ',I..' " .. ':.' !
~ys~tn.
Recyelinr.Fund - this, fund is used to aCCOlint for the activities of the City .~ecycIing
program. v
LiQuorFubd-This fundjs u~ to account for the activities of the City's off-sale liquor
operation. '. ~e apel'ation. consists of ~wo off"'sale liquor store..sites. A portion of th~ n~t
income. frornthe operation is used to. fund general fund activities.
CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1992
(With comparative totals as of December 31, 1991)
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ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Taxes
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
Inventories, at cost
Prepaid items
Water Sewer
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$ 171 637 $ 661 477
1 037
34 891 142 560
2 375 12 299
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1 740 8 699
12 482 25 306
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4 283 4 302
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TOTAL CURRENT ASSETS
228 445
854 643
TOTAL PROPERTY AND EQUIPMENT
2 939 491 7 167 455
(523 440) (3 384 103)
2 416 051 3 783 352
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PROPERTY AND EQUIPMENT, AT COST
LESS ACCUMULATED DEPRECIATION
OTHER ASSETS
Bond discount, net of amortization
I
734
TOTAL ASSETS
$2 645 230 $4 637 995
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LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Current portion of long-term debt
$
5 982 $
116
10 000
9 827
116
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TOTAL CURRENT LIABILITIES
16 098
9 943
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LONG-TERM LIABILITIES
Bonds payable less current portion above
45 000
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TOTAL LIABILITIES
61 098
9 943
TOTAL FUND EQUITY
2 756 610 4 103 785
(172 478) 524 267
2 584 132 4 628 052
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FUND EQUITY
Contributed capital
Retained earnings (deficit) - unreserved
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TOTAL LIABILITIES AND FUND EQUITY
$2 645 230 $4 637 995
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-33-
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1992
(With comparative totals for the year ended December 31, 1991)
Water
OPERATING REVENUE
Sales
Less cost of sales
$
GROSS PROFIT
Charges for services
Permits and connection fees
179 411
20 480
199 891
7 688
5 087
5 102
61 128
640
47 861
1 017
5 472
13 570
31 470
GROSS PROFIT AND REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Metropolitan Waste Control Commission
disposal charges
Rent
Advertising
Other
7 807
186 842
13 049
13 630
2 298
7 616
7 829
( 5 823)
25 550
38 599
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
OTHER REVENUE (EXPENSES)
General property taxes
Property tax credits
Interest on investments
Other income
Interest expense
TOTAL OTHER REVENUE (EXPENSES)
INCOME (LOSS) BEFORE TRANSFERS
OPERATING TRANSFERS FROM (TO) OTHER FUNDS
NET INCOME (LOSS)
RETAINED EARNINGS (DEFICIT), JANUARY 1
38 599
(211 077)
$(172 478)
RETAINED EARNINGS (DEFICIT), DECEMBER 31
-34-
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Sewer
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$
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554 334
5 800
560 134
17 333
1 868
12 061
176 610
4 786
27 171
34
4 331
4 603
376 668
8 259
633 724
(73 590)
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36 392
21 420
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57 812
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(15 778)
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(15 778)
540 045
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$524 267
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1992
(With comparative totals for the year ended December
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Other income related to operations
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation and amortization
(Increase) decrease in assets -
Taxes
Accounts
Accrued interest
Special assessments
Inventory
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from (to) other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Bond principal paid
Interest paid on revenue bonds
Acquisition of property and equipment
Property taxes levied for debt service
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
-35-
I
31, 1991)
Water Sewer
$ 13 049 $(73 590)
7 829 21 420
61 128 176 610
76
(333) (14 140)
(808) 419
1 012 (479)
332 (831)
(3 087) 2 846
(39) (38)
79 159 112 217
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(10 000)
(5 823)
15 928
105
7 616
86 880
84 757
5I7l 637
(94 662)
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(94 662)
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36 392
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53 947
607 530
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5661 477
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5646 575
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CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE BALANCE SHEET
DECEMBER 31, 1992 AND 1991
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Taxes
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
Prepaid items
TOTAL CURRENT ASSETS
PROPERTY AND EQUIPMENT, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL PROPERTY AND EQUIPMENT
OTHER ASSETS
Bond discount, net of amortization
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Current portion of long-term debt
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES
Bonds payable less current portion above
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings (deficit)
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
-36-
Exhibit D-4
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1992 1991
$ 171 637 $ 84 757
1 037 1 113
34 891 34 558
2 375 1 567
1 740 490
12 482 14 744
4 283 4 615
228 445 141 844
2 939 491 2 292 916
(523 440) (462 497)
2 416 051 1 830 419
734 919
$2 645 230 $1 973 182
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$ 5 982 $ 9 069
116 154
10 000 10 000
16 098 19 223
45 000 55 000
61 098 74 223
2 756 610 2 110 036
(172 478) ( 211 077)
2 584 132 1 898 959
$2 645 230 $1 973 182
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-5
WATER FUND
COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1992 AND 1991
1992 1991
OPERATING REVENUE
Charges for services $ 179 411 $ 149 088
Permits and connection fees 20 480 23 481
TOTAL OPERATING REVENUE 199 891 172 569
OPERATING EXPENSES
Personal services 7 688 5 242
Supplies 5 087 11 728
Repairs and maintenance 5 102 13 206
Depreciation and amortization 61 128 56 586
Professional services 640 702
Contracted services 47 861 51 166
Communication 1 017 1 098
Insurance 5 472 4 811
Water purchases 13 570 14 400
Utilities 31 470 23 315
Other 7 807 946
TOTAL OPERATING EXPENSES 186 842 183 200
OPERATING INCOME (LOSS) 13 049 (10 631)
OTHER REVENUE (EXPENSES)
General property taxes 13 630 16 579
Property tax credits 2 298 1 220
Interest on investments 7 616 4 723
Other income 7 829 6 600
Interest expense (5 823) (6 493)
TOTAL OTHER REVENUE (EXPENSES) 25 550 22 629
INCOME BEFORE TRANSFERS 38 599 11 998
OPERATING TRANSFERS TO OTHER FUNDS ( 20 000)
NET INCOME (LOSS) 38 599 (8 002)
RETAINED EARNINGS (DEFICIT), JANUARY 1 (211 077) (203 075)
RETAINED EARNINGS (DEFICIT) , DECEMBER 31 $(172 478) $ ( 211 077)
-37-
CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1992 AND 1991
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Other income related to operations
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation and amortization
(Increase) decrease in assets -
Taxes
Accounts
Accrued interest
Special assessments
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NON CAP I TAL FINANCING ACTIVITIES
Operating transfers to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Bond principal paid
Interest paid on revenue bonds
Acquisition of property and equipment
Property taxes levied for debt service
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
-38-
Exhibit D-6
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1992 1991
$ 13 049 $(10 631)
7 829 6 600
61 128 56 586
76 (425)
(333) (1 295)
(808) (380)
1 012 2 892
332 (977 )
(3 087) 3 616
(39) 41
(456)
79 159 55 571
(20 000)
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(10 000) (10 000)
(5 823) (6 493)
(375 )
15 928 17 799
105 931
7 616 4 723
86 880 41 225
84 757 43 532
$171 637 $ 84 757
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$646 575
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$ 85 237
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE BALANCE SHEET
DECEMBER 31, 1992 AND 1991
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ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
Prepaid items
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TOTAL CURRENT ASSETS
I
PROPERTY AND EQUIPMENT, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL PROPERTY AND EQUIPMENT
I
TOTAL ASSETS
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LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
I
TOTAL CURRENT LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings - unreserved
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TOTAL FUND EQUITY
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TOTAL LIABILITIES AND FUND EQUITY
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-39-
Exhibit 0-7
1992 1991
$ 661 477 $ 607 530
142 560 128 420
12 299 12 718
8 699 8 624
25 306 24 902
4 302 3 471
854 643 785 665
7 167 455 7 072 793
(3 384 103) (3 207 493)
3 783 352 3 865 300
$4 637 995 $4 650 965
$ 9 827 $ 6 981
116 154
9 943 7 135
4 103 785 4 103 785
524 267 540 045
4 628 052 4 643 830
$4 637 995 $4 650 965
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-8
SEWER FUND
COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1992 AND 1991
1992
OPERATING REVENUE
Charges for services
Permits and connection fees
$554 334
5 800
TOTAL OPERATING REVENUE
560 134
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Utilities
Metropolitan Waste Control Commission disposal charges
Other
17 333
1 868
12 061
176 610
4 786
27 171
34
4 331
4 603
376 668
8 259
TOTAL OPERATING EXPENSES
633 724
OPERATING INCOME (LOSS)
OTHER REVENUE (EXPENSES)
Interest on investments
Other income
(73 590)
36 392
21 420
TOTAL OTHER REVENUE (EXPENSES)
57 812
NET INCOME (LOSS)
(15 778)
540 045
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
$524 267
-40-
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1991
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$474 451
6 500
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480 951
12 230
1 633
4 834
175 628
7 166
37 464
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3 546
4 054
307 116
15 151
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568 822
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i87 871)
38 396
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38 396
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(49 475)
589 520
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$540 045
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1992 AND 1991
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CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Other income related to operations
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation
(Increase) decrease in assets -
Accounts
Accrued interest
Special assessments
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
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CASH PROVIDED BY OPERATING ACTIVITIES
I
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition of property and equipment
I
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
I
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
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NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
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-41-
1992
$(73 590)
21 420
176 610
(14 140)
419
(479)
(831)
2 846
(38)
112 217
(94 662)
36 392
53 947
607 530
$661 477
$
Exhibit 0-9
1991
$(87 871)
175 628
(2 052)
(355)
8 676
(619)
(4 681)
(199)
(744)
87 783
(52 375)
38 396
73 804
533 726
$607 530
$ 66 284
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE BALANCE SHEET
DECEMBER 31, 1992 AND 1991
ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts and contracts payable
FUND EQUITY
Retained earnings - unreserved
TOTAL LIABILITIES AND FUND EQUITY
-42-
Exhibit D-10
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1992 1991
$ 25 933 $ 8 668
140 316
97
51
365 257
S 26 489 S 9 338
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$ 3 677
$ 4 145
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22 812
5 193
S 26 489
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S 9 338
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-11
RECYCLING FUND
COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1992 AND 1991
1992 1991
OPERATING REVENUE
Charges for services S 70 981 S 63 281
OPERATING EXPENSES
Personal services 546
Supplies 3 550
Repairs and maintenance
Contracted services 58 015 58 521
Other 1 325 59
TOTAL OPERATING EXPENSES 63 436 58 580
OPERATING INCOME 7 545 4 701
OTHER REVENUE (EXPENSES)
Interest on investments 74 492
INCOME BEFORE TRANSFERS 7 619 5 193
OPERATING TRANSFERS FROM (TO) OTHER FUNDS 10 000
NET INCOME 17 619 5 193
RETAINED EARNINGS, JANUARY 1 5 193
RETAINED EARNINGS, DECEMBER 31 S 22 812 S 5 193
-43-
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1992 AND 1991
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities -
(Increase) decrease in assets -
Accounts
Accrued interest
Special assessments
Increase (decrease) in liabilities -
Accounts payable
CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NON CAP I TAL FINANCING ACTIVITIES
Operating transfers from (to) other funds
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
-44-
Exhibit D-12
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1992
I
1991
$ 7 545
$ 4 701
I
176 (316 )
97 (97)
(159) (257)
(468) 4 145
7 191 8 176
10 000
74 492
17 265 8 668
8 668
$ 25 933 S 8 668
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CITY OF SHOREWOOD, MINNESOTA Exhibit 0-13
LIQUOR FUND
COMPARATIVE BALANCE SHEET
DECEMBER 31, 1992 AND 1991
Store I Store II
1992 1991 1992 1991
ASSETS
CURRENT ASSETS
Cash and investments $166 849 $153 277 $138 066 $148 985
Receivables
Accounts 104 84 155 125
Accrued interest 3 100 2 930 2 648 2 597
Inventories, at cost 46 080 47 220 121 888 131 693
Prepaid items 3 390 3 214 4 852 4 753
TOTAL CURRENT ASSETS 219 523 206 725 267 609 288 153
PROPERTY AND EQUIPMENT, AT COST 24 917 24 917 9 161 9 161
LESS ACCUMULATED DEPRECIATION (24 917) ( 24 917) (8 267) (7 571)
TOTAL PROPERTY AND EQUIPMENT 894 1 590
TOTAL ASSETS $219 523 $206 725 $268 503 $289 743
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable $ 28 450 $ 30 202 $ 33 551 $ 58 328
Salaries and compensated absences
payable 800 2 438 1 176 3 936
TOTAL CURRENT LIABILITIES 29 250 32 640 34 727 62 264
RETAINED EARNINGS
Unreserved 190 273 174 085 233 776 227 479
TOTAL LIABILITIES AND
RETAINED EARNINGS $219 523 $206 725 $268 503 $289 743
-45-
CITY OF SHOREWOOD, MINNESOTA Exhibit D-14 I
LIQUOR FUND
COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS I
YEARS ENDED DECEMBER 31, 1992 AND 1991
Store I Store II I
1992 1991 1992 1991
OPERATING REVENUE
Sales $577 225 $606 845 $800 685 $848 487
Less cost of sales 460 905 475 120 652 227 671 989 I
GROSS PROFIT 116 320 131 725 148 458 176 498
OPERATING EXPENSES I
Personal services 58 555 51 130 79 389 75 474
Supplies 1 518 1 732 3 208 3 293
Depreciation 695 617
Professional services 959 1 120 959 1 120 I
Contracted services 1 200 1 571 427 888
Insurance 4 436 4 907 6 518 7 184
utilities 5 181 4 793 7 114 5 904
Rent 17 904 19 726 27 255 25 380 I
Advertising 3 640 2 873 3 576 3 326
Other 1 978 4 198 1 034 5 479
TOTAL OPERATING EXPENSES 95 371 92 050 130 175 128 665 I
OPERATING INCOME 20 949 39 675 18 283 47 833
OTHER REVENUE (EXPENSES) I
Interest on investments 9 239 9 127 7 898 8 047
Other income 3 239 1 116 636
TOTAL OTHER REVENUE I
(EXPENSES) 9 239 12 366 9 014 8 683
INCOME BEFORE TRANSFERS 30 188 52 041 27 297 56 516
OPERATING TRANSFERS TO OTHER FUNDS (14 000) (10 000) ( 21 000) (15 000) I
NET INCOME 16 188 42 041 6 297 41 516
RETAINED EARNINGS, JANUARY 1 174 085 132 044 227 479 185 963 I
RETAINED EARNINGS, DECEMBER 31 $190 273 $174 085 $233 776 $227 479
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMPARATIVE STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1992 AND 1991
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CASH FLOWS FROM OPERATING ACTIVITIES
Operating income
Other income related to operations
Adjustments to reconcile operating
income to net cash provided by
operating activities
Depreciation
(Increase) decrease in assets -
Accounts
Accrued interest
Inventory
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences
payable
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CASH PROVIDED BY OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Operating transfers to other funds
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CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of property and
equipment
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CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
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CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
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Store I
1992 1991
$ 20 949
(20)
(170)
1 140
(176)
(1 752)
(1 638)
$ 39 675
3 239
(84)
(604)
(3 713)
1 000
11 763
(179)
Exhibit D-15
Store II
1992 1991
$ 18 283
1 116
695
(30)
(51)
9 806
(99)
(24 777)
(2 760)
$ 47 833
636
617
(125)
(664)
(14 633)
1 430
34 032
1 156
18 333 51 097 2 183 70 282
(14 000) (10 000) (21 000) (15 000)
(425)
9 239 9 127 7 898 8 047
13 572 50 224 (10 919) 62 904
153 277 103 053 148 985 86 081
$166 849 $153 277 $138 066 $148 985
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CITY OF SHOREWOOD, MINNESOTA.
AGENCY FUNDS
Agency funds are established to account for assets held by the City as an agent for
others.
Deferred Compensation Fund - This fund is used to account for employee payrol~
deferments and the related liability, that are deposited with outsIde companies in
accordance with the provisions of Internal Revenue Code Section 457.
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CITY OF SHOREWOOD, MINNESOTA
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 1992
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ASSETS
Investments for deferred
compensation plan, at market
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LIABILITIES
Deferred compensation funds
held for participants
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Balance
Januarv 1
$ 67 294
$ 67 294
-48-
Additions
Deductions
$ 19 182
$
$ 19 182
$
Exhibit E-1
Balance
December 31
$ 86 476
$ 86 476
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets of a governmental jurisdiction which are not
accountedJor in an enterprise fund. To be classified as a fixed asset in this category,
a specific piece of property must meet three attributes:
1. Tangible nature
2. A lffe longer than the current fiscal year
3. A significant value
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CITY OF SHOREWOOD, MINNESOTA Exhibit F-1
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31, 1992 AND 1991
1992 1991
GENERAL FIXED ASSETS
Land $ 449 326 $ 449 326
Buildings and structures 1 251 870 504 781
Improvements other than buildings 704 181 554 167
Furniture and equipment 858 894 805 179
TOTAL GENERAL FIXED ASSETS $3 264 271 $2 313 453
INVESTMENT IN GENERAL FIXED ASSETS
General fund $ 858 894 $ 805 179
Capital projects funds 2 405 377 1 508 274
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $3 264 271 $2 313 453
-49-
CITY OF SHOREWOOD, MINNESOTA Exhibit F-2
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31, 1992
Buildings Improvements Furniture
and Other Than and
Total Land Structures Buildinqs Equipment
FUNCTION
General government $ 482 539 $ $ 300 000 $ 10 959 $171 580
Public works 1 865 326 153 500 897 770 126 742 687 314
Parks 916 406 295 826 54 100 566 480
TOTAL GENERAL
FIXED ASSETS $3 264 271 $449 326 $1 251 870 $704 181 $858 894
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CITY OF SHOREWOOD, MINNESOTA Exhibit F-3
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31, 1992
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General General
Fixed Assets Fixed Assets
Januarv 1 Additions Deductions December 31
General government $ 459 475 $ 23 738 $ 674 $ 482 539
Public works 1 007 900 969 526 112 100 1 865 326
Parks 846 078 70 328 916 406
TOTAL GENERAL
FIXED ASSETS $2 313 453 $1 063 592 $112 774 $3 264 271
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEB1;/ ACCOUNT GROUP
General obligation bonds and other forms of long-term debt supported by general
revenues are. obligations of a governmental unit as a whole and not its individual
constituent funds. The amount of unmatured long-term indebtedness which is backed by
the full faith and credit of the government (excluding enterprise fund debt) is recorded
and accounted for in a separate self-balancing account group titled the "General Long-
Term Debt Account Group." Also, this debt group includes certain liabilities not
expected to .be liquidated with expendable available financial resources.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT
DECEMBER 31, 1992 AND 1991
Exhibit G-1
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1992 1991
AMOUNT AVAILABLE FOR DEBT SERVICE
Debt service funds
$1 742 742 $2 311 859
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AMOUNTS TO BE PROVIDED
Future tax levies, assessments and tax increments
1 637 712 1 971 051
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TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED
$3 380 454 $4 282 910
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GENERAL LONG-TERM DEBT PAYABLE
Compensated absences payable $ 19 454 $ 16 910
General obligation special assessment bonds 2 441 000 3 346 000
Tax increment revenue bonds 920 000 920 000
TOTAL GENERAL LONG-TERM DEBT PAYABLE $3 380 454 $4 282 910
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-52-
CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31, 1992
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SPECIAL ASSESSMENT BONDS
G.O Improvement refunding bonds of 1987
G.O Improvement bonds of 1989
G.O Improvement bonds of 1974
G.O Improvement bonds of 1986
G.O Improvement bonds of 1991
G.O Improvement bonds of 1991
Final
Interest Issue Maturity
Rates Date Date
5.40-6.60% 4/1/87 2/1/01
6.10-6.50 10/1/89 2/1/03
5.70 1/1/74 1/1/94
6.75-7.90 8/1/86 2/1/02
4.50-5.85 11/1/91 2/1/02
8.00 9/1/91 2/1/97
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TAX INCREMENT REVENUE BONDS
Tax increment revenue bonds of 1991
9.00
5/1/91
8/1/97
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TOTAL
REVENUE BONDS
G.O. Water Revenue bonds
8.50
9/1/80
9/1/96
TOTAL
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-53-
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-53-
CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS
DECEMBER 31, 1992
Total G.O. Bonds
Year Principal Interest
1993 $ 274 500 $ 141 035
1994 276 000 125 456
1995 266 000 110 008
1996 262 000 94 570
1997 242 500 79 065
1998 235 000 64 965
1999 235 000 50 833
2000 230 000 36 653
2001 230 000 22 456
2002 170 000 10 091
2003 75 000 2 437
Total $2 496 000 $ 737 569
*
Tax increment collections will be remitted to the bond holders and payments will be
applied first to accrued interest. It is anticipated that the 1993 tax increment
collections will be applied only to interest payments.
-54-
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G.O. Water
Revenue Bonds
Principal Interest
$ 10 000 $
15 000
15 000
15 000
4 675
3 825
2 550
1 275
$ 55 000 $ 12 325
-54-
Exhibit 1-1
Tax Increment
Revenue Bonds*
Principal Interest
$
200 000
225 000
240 000
255 000
$160 446
78 300
59 850
39 150
17 100
$920 000 $354 846
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(
CITY OF SHOREWOOD, MINNESOTA
SECTION III
STATISTICAL SECTION
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Table 1
Fiscal Total General Public Public Parks and Misc/
Year Expenditures Government Safety Works Recreation Transfers
1983 $ 788 343 $271 057 $294 647 $188 420 $ 34 219 $
1984 1 203 475 346 048 329 096 485 771 42 560
1985 1 266 606 402 626 367 728 443 774 52 478
1986 1 400 755 419 658 410 016 522 066 49 015
1987 1 651 927 569 098 481 603 532 902 68 324
1988 1 898 594 646 923 523 717 669 990 57 964
1989 1 794 684 610 659 503 542 570 981 83 502 26 000
1990 2 065 011 616 929 532 658 799 543 115 881
1991 2 241 781 665 152 548 343 375 406 142 168 510 712
1992 2 301 950 654 085 571 077 434 015 116 173 526 600
-55-
CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE
LAST TEN FISCAL YEARS
Table 2
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Total General Licenses
Fiscal General Fund Property and Inter-
Year Revenues Taxes Permits Governmental Fines Miscellaneous
1983 $ 852 699 $ 414 856 $ 53 606 $259 326 $ 47 544 $ 77 367
1984 1 269 836 801 800 49 030 303 653 64 354 50 999
1985 1 438 991 929 199 71 146 318 676 57 682 62 288
1986 1 652 307 1 040 984 117 050 356 308 70 678 67 287
1987 1 837 056 993 086 282 100 364 022 103 785 94 063
1988 1 984 148 1 087 099 330 408 368 288 91 385 106 968
1989 1 976 961 1 118 886 207 129 405 022 105 244 140 680
1990 2 367 995 1 437 140 203 828 273 780 124 234 329 013
1991 2 237 115 1 627 874 168 560 153 681 101 200 185 800
1992 2 307 389 1 576 158 175 123 283 689 89 960 182 459
-56-
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CITY OF SHOREWOOD, MINNESOTA Table 3
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1)
Collection Collection Percentage
of Current Percentage of Prior of Total
Fiscal Total Year's of Levy Year's Total Collections
Year Levy Levy Collected Levy Collections to Levy
1983 $ 584 959 $ 561 533 96.00% $ 23 007 $ 584 540 99.93%
1984 1 134 014 1 095 150 96.57 18 968 1 114 118 98.25
1985 1 171 628 1 130 776 96.51 25 072 1 155 848 98.65
1986 1 209 261 1 168 941 96.67 42 690 1 211 631 100.20
1987 1 254 420 1 211 819 96.60 32 265 1 244 084 99.18
1988 1 293 689 1 236 536 95.58 27 898 1 264 434 97.74
1989 1 300 881 1 249 332 96.04 46 405 1 295 737 99.61
1990 1 684 576 1 602 385 95.12 48 448 1 650 833 98.00
1991 1 856 988 *1 793 402 96.58 41 801 1 835 203 98.83
1992 1 864 577 1 819 238 97.57 55 917 1 875 155 100.57
(1)
*
Includes state paid property tax credits
Includes $66,971 state aid reduction from the Homestead and Agricultural Credit
Aid.
-57-
CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALUATION, TAX LEVIES AND MILL RATES
(shown by year of tax collectibility)
1992 1991 1990 1989
(1) & (2) (1) (1)
Assessed valuation/
Tax capacity $7 681 118 $7 909 001 $7 033 863 $7 705 314
Contribution to fiscal
disparities pool (212 697) (227 257) (209 164) (218 604)
Receivable from fiscal
disparities pool 390 694 388 595 372 707 347 288
Taxable valuation/
Total tax capacity $7 859 115 $8 070 339 $7 197 406 $7 833 998
Tax levies
General
Debt service
$1 840 663
23 914
$1 840 663 $1 667 451 $1 282 956
16 325 17 125 17 925
Total
$1 864 577
$1 856 988 $1 684 576 $1 300 881
Mill rates/Tax
Capacity Rate
General
Debt service
19.995 Rate
.169
20.274 Rate 20.093 Rate 16.282 Rate
.180 .206 .227
Total
20.164 Rate
20.454 Rate 20.299 Rate 16.509 Rate
(1) As a result of 1988 legislation assessed valuation has been replaced by tax
capacity valuations. It is calculated based upon a state mandated computation
from the estimated market value. The term, mill rate, has been replaced with
the term, tax capacity rate, as a result of the 1988 legislation. 1982-1988
information is stated in terms of assessed valuation and mill rates. 1989-1992
information is stated in terms of tax capacity and tax capacity rates.
(2) The debt service levy includes $8,414 levied for the retirement of Storm Sewer
District No. 2 improvement bonds. Storm Sewer District No. 2 was established by
the City of Shorewood in 1991. This portion of the debt service tax levy is
only levied within Storm Sewer District No. 2 to retire the $31,000 bond issue
used to finance the improvements within the District and is not reflected in the
tax rates above. Table 5 reports the tax rate of this District separately.
-58-
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1988 1987 1986
$55 691 698 $52 274 820 $50 700 422
(1 699 452) (1 457 783) (1 420 050)
2 597 611 2 242 637 1 934 251
$56 589 857 $53 059 674 $51 214 623
$ 1 274 189 $ 1 172 220 $ 1 126 436
19 500 82 200 82 825
$ 1 293 689 $ 1 254 420 $ 1 209 261
22.481 Mills 22.093 Mills 22.020 Mills
.344 1.550 1.620
22.825 Mills 23.643 Mills 23.640 Mills
1985 1984
$50 464 722 $47 316 709
(1 355 365) (1 274 399)
1 918 366 1 643 793
$51 027 723 $47 686 103
S 1 068 803 S
102 825
932 180
201 834
S 1 171 628 S 1 134 014
20.903 Mills 19.875 Mills
2.011 4.304
22.914 Mills 24.179 Mills
-58-
Table 4
1983
$45 876 016
(1 105 205)
1 415 133
$46 185 944
S 542 579
42 380
S 584 959
11. 746 Mills
.918
12.664 Mills
CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX MILL RATES/TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF ASSESSED VALUE FOR YEARS 1983-1988
AND TAX CAPACITY IN 1989 - 1992)
(1 ) ( 1)
Year School School Watershed Watershed
Taxes District District District District
Payable City County No. 276 No. 277 No. 3 No. 4 Misc.
1983 12.664 28.451 57.050 52.870 .086 .346 5.106
1984 24.179 29.689 58.686 54.352 .281 .289 5.318
1985 22.914 29.262 57.417 51.239 .061 .399 4.391
1986 23.640 29.688 60.209 59.058 .089 .198 5.378
1987 23.643 29.356 62.968 54.982 .133 .474 5.459
1988 22.825 31. 667 65.440 58.550 .092 .570 5.988
1989 16.509 (2) 27.101 59.285 49.139 .075 .445 5.387
1990 20.299 (2) 27.916 53.658 43.434 .120 .436 5.121
1991 20.454 (2) 30.114 56.401 46.828 .131 .449 6.855
1992 20.164 (2) 34.327 64.530 56.643 .142 .490 5.481
(1) Includes vocational school
(2) Information for 1989-1992 is stated in terms of tax capacity rates due to
1988 legislative changes as explained in Table 4.
-59-
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Table 5
Totals
School School School District School
District District No. 276, District
Storm No. 276, No. 276, Watershed No. 277,
Sewer Watershed Watershed District No. 4, Watershed
District District District Storm Sewer District
No. 2 No. 3 No. 4 District No. 2 No. 3
103.357 103.617 103.617 99.177
118.153 118.161 118.161 113.819
114.045 114.383 114.383 107.867
119.004 119.113 119.113 117.853
121. 559 121. 900 121. 900 113.573
126.012 126.490 126.490 119.122
108.357 108.727 108.727 98.211
107.114 107.430 107.430 96.890
113.955 114.273 114.273 104.382
17.792 124.649 124.997 142.789 116.762
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CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL TAXPAYERS
DECEMBER 31, 1992
Table 6
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Percentage
1992 Tax of Total
Taxpayer Type of Business Capacity Tax Capacity
Northern States Power Company utility $113 953 1. 48%
Ryan Construction Company Shopping Center 90 250 1.17
Minnetonka Country Club Country Club 71 548 .93
Minnegasco utility 65 436 .85
Two S Properties Commercial 43 295 .56
Shorewood Yacht Club Yacht Club 36 925 .48
Markus Pagel Partnership Commer-cial 31 268 .41
Indiyidual Residential 29 678 .39
Individual Residential 28 060 .37
Individual Residential 24 928 ~
Total $535 341 6.96%
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-60-
CITY OF SHOREWOOD, MINNESOTA Table 7
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collection
of Collection Percentage
Current Percentage of Prior of Total
Total Year's of Levy Year's Total Collections
Year Levy Levy Collected Levy Collections To Levy
1983 $577 348 $464 559 80.46% $ 89 374 $553 933 95.94%
1984 501 439 412 661 82.30 48 136 460 797 91. 90
1985 468 020 372 783 79.65 71 787 444 570 94.99
1986 678 919 563 150 82.95 216 131 779 281 114.78
1987 551 886 539 633 97.78 32 122 571 755 103.60
1988 644 367 637 874 98.99 33 724 671 598 104.23
1989 500 116 497 733 99.52 66 916 564 649 112.90
1990 457 384 444 080 97.09 53 452 497 532 108.78
1991 365 577 345 886 94.61 28 677 374 563 102.46
1992 362 352 317 103 87.51 19 461 336 564 92.88
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1992
Table 8
Market Value
$382 656 900
$ 7 653 138
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Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
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Total Bonded Debt $ 3 416 000
Less: (Note B)
Special Assessment Bonds (2 410 000)
General obligation Water Revenue Bonds (55 000)
General Obligation Storm Sewer Bonds (31 000)
Tax Increment Revenue Bonds (920 000)
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Total Debt Applicable to Debt Limit
Legal Debt Margin
$ 7 653 138
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Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
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"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75, no
municipality, except a school district or a city of the first class, shall incur or be
subject to a net debt in excess of 2.0 percent of the market value of taxable property in
the municipality."
Note (B): M.S.A. Section 162.18 (Bond; Municipal State Aid)
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"Subdivision 2. Not included in net debt of municipality for purpose of any statutory or
charter limitation. Obligations issued hereunder may be authorized by resolution of the
governing body without authorization by the electors, and shall not be included in the net
debt of the municipality for the purpose of any statutory or charter limitation on
indebtedness."
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M.S.A. Section 475.51 (Definitions:)
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"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt
the aggregate of the principal of the following:
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(1) Obligations issued for improvements which are payable wholly or partly from the
proceeds of special assessments levied upon property specially benefitted
thereby, including those which are general obligations of the municipality
issuing them, if the municipality is entitled to reimbursement in whole or in
part from the proceeds of the special assessments.
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(2) Warrants or orders having no definite or fixed maturity.
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(3) Obligations payable wholly from the income from revenue-producing conveniences.
(4) Obligations issued to create or maintain a permanent improvement revolving fund.
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(5) Obligations issued for the acquisition and betterment of public water works
systems, and public lighting, heating or power systems and of any combination
thereof, or for any other public convenience from which a revenue is or may be
derived.
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(6) Amount of all money and the face value of all securities held as a sinking fund
for the extinguishment of obligations other than those deductible under this
subdivision.
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(7) All other obligations, which under the provisions of the law authorizing their
issuance, are not to be included in computing the net debt of the municipality."
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* After contribution and distribution from "fiscal disparity" legislation;
Minnesota laws 1971, Extra Session, Chapter 24.
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CITY OF SHOREWOOD, MINNESOTA Table 9
RATIO OF NET BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Ratio of Net Net
Bonded Debt Bonded
Assessed (1) Less Amount to Assessed Debt
Fiscal Estimated Value/Tax Gross Reserved for Net Values/ per
Year Population Capacitv Bonded Debt Debt Service Bonded Debt Tax Capacity Capita
1983 4720 $46 185 944 $4 090 000 $1 432 874 $2 657 126 .0575:1 562.95
1984 4750 47 686 103 4 730 000 1 383 783 3 346 217 .0702:1 704.47
1985 4750 51 027 723 4 115 000 1 523 958 2 591 042 .0508:1 545.48
1986 4788 51 214 623 4 500 000 3 054 867 1 445 133 .0282:1 301. 82
1987 4921 53 059 674 4 975 000 2 044 326 2 930 674 .0552:1 595.54
1988 5094 56 589 857 4 530 000 2 688 009 1 841 991 .0325:1 361. 60
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1989
1990
1991
1992
5815
5917
6000
6135
7 833 998
7 197 406
8 070 339
7 859 115
2 990 000
2 720 000
4 331 000
3 416 000
1 510 303
1 902 837
2 311 859
1 742 742
1 479 697
817 163
2 019 141
1 673 258
.1889:1
.1135:1
.2502:1
.2129:1
254.46
138.10
336.52
272.74
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(1)
Gross bonded debt amounts in this Table are general obligation special assessment
bonds and revenue bonds whose principal source of funding will be sources other
than general property taxes. The $920,000 Tax Increment Revenue Bonds are
included in the gross bonded debt even though they are not backed by the full
faith and credit of the City.
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CITY OF SHOREWOOD, MINNESOTA Table 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES*
Percent of
Debt Service
Fiscal Total Total General to General
Year Principal Interest Debt Service Expenditures* Expenditures
1983 $ 605 000 $272 167 $ 877 167 $1 683 087 52.12%
1984 605 000 242 305 847 305 2 074 644 40.84
1985 610 000 282 298 892 298 2 158 904 41. 33
1986 590 000 268 077 858 077 2 258 832 37.99
1987 (2) 1 840 000 273 709 2 113 709 3 971 707 53.22
1988 435 000 274 636 709 636 2 608 230 27.21
1989 (3) 2 625 000 253 115 2 878 115 4 625 949 62.22
1990 260 000 175 098 435 098 2 500 109 17.40
1991 290 000 173 495 463 495 2 194 564 21.12
1992 905 000 167 163 1 072 163 2 847 513 37.65
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(1) Excludes G.O. Bonds reported in Enterprise Funds
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(2) Principal includes bonds refunded in 1987
(3) Principal included bonds defeased in 1989
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*
Includes General and Debt Service Funds
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-64-
CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 1992
Table 11
Direct Debt*
City of Shorewood
City of
Percent of Shorewood
Net Debt Debt Applicable Share
Total Debt Outstandinq to City of Debt
$ 3 416 000 $ 1 673 258 100.00% $1 673 258
215 090 000 67 798 886 .78 528 831
24 440 000 23 102 223 21. 87 5 052 456
1.85
1.20
424 975 000 23 112 017 .41 94 759
5 850 000 2 950 000 .44 12 980
Overlapping Debt
Hennepin County
School District #276
School District #277
Vo-Tech District #287
Metropolitan Council
Metropolitan Transit
Commission
Total Over-
lapping Debt
670 355 000
116 963 126
4.86
5 689 026
Total Direct and
Overlapping
Debt
$673 771 000
$118 636 384
6.21%
$7 362 284
*
Direct debt includes all debt backed by the full faith and credit of the City even
though it will be financed in part by special assessments or enterprise fund
revenues and the tax increment revenue bonds even though they are supported only by
the tax increments generated within the TIF District.
-65-
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net Ratio of Net
Fiscal Gross (1) Revenue Debt Service Revenue to
Year Revenue Expenses Available Principal Interest Total Debt Service
1983 $ 25 500 $ 59 314 $(33 814) $ 5 000 $ 11 623 $ 16 623 (2.034) to 1
1984 28 596 59 477 (30 881) 5 000 11 273 16 273 (1. 898) to 1
1985 39 855 53 151 (13 296) 5 000 10 898 15 898 ( .836) to 1
1986 58 430 59 095 (665) 10 000 10 524 20 524 ( .032) to 1
1987 108 043 81 642 26 401 10 000 9 578 19 578 1. 349 to 1
1988 158 474 135 897 22 577 10 000 8 834 18 834 1.199 to 1
1989 176 719 110 987 65 732 10 000 8 125 18 125 3.627 to 1
1990 192 682 116 289 76 393 10 000 7 293 17 293 4.418 to 1
1991 172 569 126 614 45 955 10 000 6 493 16 493 2.786 to 1
1992 199 891 125 714 74 177 10 000 5 823 15 823 4.688 to 1
(1) Excluding depreciation and interest on bonds
-66-
CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
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1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
(1) (1 )
Commercial Residential
Construction Construction
Number
of
Value Units Value
$ 258 449 26 $ 3 259 626
883 000 16 2 975 396
35 6 529 612
85 686 80 15 779 286
163 23 397 136
401 004 157 29 040 667
89 16 949 136
20 000 82 16 252 990
69 14 044 120
55 10 899 687
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Fiscal
Year
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Sources
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(1) City Planning and Inspection Department
(2) County Assessor's Office
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Bank deposits are not shown as no banks are located within the City limits.
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Table 13
(2 )
Property Value
Commercial Residential Total
$ 7 956 000 $170 185 200 $178 141 200
8 552 700 174 641 300 183 194 000
9 095 600 186 399 000 195 494 600
9 171 300 190 679 600 199 850 900
10 317 900 197 382 800 207 700 700
11 167 900 217 337 000 228 504 900
11 351 300 253 363 500 264 714 800
11 820 800 299 565 500 311 386 300
11 997 100 341 843 200 353 840 300
12 081 200 370 575 700 382 656 900
-67-
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CITY OF SHOREWOOD, MINNESOTA
MISCELLANEOUS STATISTICS
DECEMBER 31, 1992
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Year of incorporation
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Form of government
Fiscal year begins
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Area of city
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Population
1992 Estimated
1990 Census
1980 Census
1970 Census
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Miles of streets and alleys
City streets
Municipal state aid streets
County roads
State highway
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Sewer
Lift stations
Sewer rates - residential
Miles of sewer lines
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Number of street lights
Building permits issued in 1991
Number of permits
Value
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Fire protection
Contracted services with Mound and Excelsior
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Police protection
Contracted services with South Lake Minnetonka
Police Department
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Parks
Number
Acres
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Water
Number of connections
Average daily consumption
Miles of watermain
Daily capacity
Number of fire hydrants
Water rate per thousand gallons
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Employees
Regular
Part-time/seasonal
Total
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Elections
Registered voters last election
Number of votes cast last election
Percentage of registered voters voting
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-68-
Table 14
1956
Council-Administrator
Adopted January 1, 1956
January 1
6.0 Square Miles
6,135
5,917
4,646
4,223
37.5
9.3
1.7
2.7
18
$54. 75/quarter
54
147
298
$15,525,941
5
79.7
778
299,600 gallons
14
4,680,000 gallons
165
$1.40/1000 gallons
20
15
35
4,590
4,020
87.6%