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1994 - Comp. Annual Financial Report 1 I 1 I 1 1 1 I 1 I 1 1/ 1 1 I 1/ 1 1 I CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT 'OR THE YEAR ENDED DECEMBER 31, 1994 JAMES C. HURM, CITY ADMINIS'rRA TOR REPORT PREPARED BY: DEPARTMENT OF FINANCE. ALAN J. ROLEK, FINANCE DIRECTOR/TREASURER MEMBER OF GOVERNMENT. FINANCE OFFJCERS; ASSO~IA TION OF THE UNITED STATES AND/CANADA I CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1994 I I I. INTRODUCTORY SECTION Elected and Appointed Officials Organizational Chart Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting I I II. FINANCIAL SECTION Independent Auditor's Report I General Purpose Financial Statements 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 I I I I combininq and Individual Fund and Account Group Financial Statements and Schedules I General Fund Comparative Balance Sheet Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Debt Service Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures and Changes in Fund Balance I I Capital Projects Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures and Changes in Fund Balance I Enterprise Funds Combining Balance Sheet Combining Statement of Revenue, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows I I Water Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows I Sewer Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows I I Exhibit Paqe No. I - IX 1 2 - 3 2 4 - 5 3 6 4 7 5 8 9 - 26 A-1 A-2 B-1 B-2 C-1 C-2 D-1 D-2 D-3 D-4 D-5 D-6 D-7 D-8 D-9 27 28 - 31 32 - 33 34 - 35 36 - 38 39 - 41 42 - 43 44 - 45 46 - 47 48 49 50 51 52 53 CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1994 Recycling Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows Stormwater Management Utility Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows Liquor Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements 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 I I Exhibit Paqe No. D-I0 54 D-ll 55 D-12 56 D-13 57 D-14 58 D-15 59 D-16 60 - 61 D-17 62 - 63 D-18 64 - 65 E-l 66 I I I I I I F-l 67 F-2 68 F-3 69 G-l 70 H-l 71 - 72 I-I 73 - 74 I I I 1 75 2 76 3 77 4 78 - 79 5 80 - 81 6 82 7 83 8 84 9 85 10 86 11 87 12 88 13 89 - 90 14 91 I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION I INTRODUCTORY SECTION I I I Elected Officials I Barbara Brancel Bruce Benson Kristi Stover Robert Daugherty Daniel Lewis I I I Appointed Officials I James C. Hurm Alan J. Rolek I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1994 Term Expires Mayor Council Member Council Member Council Member Council Member 1994 1996 1996 1994 1994 City Administrator Finance Director/Treasurer ------------------- ORGANIZATIONAL CHART - CITY OF SHOREWOOD I VOTERS I I CITY ATrORNEY ~ ~ - - CITY COUNCIL BOARDS & COMMISSIONS " - PLANNING COMMISSION CfTYAD~TRATOR I - PARK COMMISSION I I I I I I I LIQUOR ENGINEERING FINANCE ADMINISTRATION PLANNING PUBLIC PUBLIC SAFETY (CONTRACT) & ZONING WORKS (CONTRACT) - Off-Sale - Engineering Svcs. - Personnel - General Government - Planning - Building & Grounds - Police - 4-City Joint Retail - Project Mgmt. - Accounting - Licensing - Zoning - Recycling (Contract) Services * - Payroll - Elections Administration - Tree Maintenance - Patrol - Investments - Records - Property - Park Maintenance - Disaster - Utility Billing - Legal Publications Records - Street Mainenance Preparedness - Accts. Payable - Public Infonnation - Inspection - Equipment Maintenance - Investigation - Accts. Recble. - Recreation Programs - Stonnwater System - Public Service - Special - Park Planning - Street Lighting - Fire - Excelsior/ Assessments (Contract) - Sanitation/Weeds Mound - Budgeting - Assessor (Contract) - Janitor Services - Fire prevention/ -MIS - Cable TV - (Contract) flreflghting - Purchasing Franchise - Utility Maintenance - Animal Control - (Contract) Chanhassen * Mayor is City's representative on joint governing board. December, 1994 I I I I I I I I I I I' I I I I I I~ I I MAYOR Robert Sean CITY OF SHOREWOOD COUNCIL Kristi Stover Bruce Benson Jennifer McCarty Doug Malam 5755 COUNTRY CLUB ROAD · SHOREWOOD, MINNESOTA 55331-8927 · (612) 474-3236 May 22, 1995 Honorable Mayor and Members of the City Council City of shorewood, Minnesota Councilmembers: The Comprehen.sive Annual Financial/Report of the City of Shorewood, :Minnesota for the fiscal year end~d December 31, 1994, is hereby suhm~tted. Responsibility for both the accuracy of the d~ta, and thec0mpleteness .and fairness of the presentation, including all disclosures, rests with>the City. To the best of our knowledge and belief, the enclosed 'data . is accurate in all material respects arid is reported ina manner designated to pre~ent fairly the financial position and/results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain. an understanding of the City's financ~al activities have been included. The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and Statis;tical. The Introductory section includes this trc;nsmittal letter, the City's organizational chart and a list of City officials;. The Financial section includes the general purpose financial statements and the combining and individual fund. and account group .financial statements and schedules, along with the auditor I s report on the financial statements. The Statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The organization, form and contents of this report.. were prepared inacc::ordance with the standards prescribed by the Governmental Accounting Standards Board, the Government Finance Officers Association 0f ". the United States and Canada, the Americalfl Institute of Certified Public Accountants, and the Minnesota State Auditor's Office.' . .. . ,,':', The funds included in our Comprehensive Annual Finan~ial Report are those considered to be within \the oversight responsibility of the City Council. The criteria used in determining the reporting entity is cqnsistent.. with those established by the Governmental Accounting StandardS Board.. }i3ased oQthese criteria, all funds and account groups of the, City are/i:rlcliuded i~ this report. I A Residential Comml,mity on Lake Minnetdnka's South Shore 'l:'he City provides it$ residents and businesses with a full range of 'municipal . services consisting of police, fire, public works, parks and general administrative services. . The City also operates five enterprises: a water utility, sewer utility, recycling utility, stormwater management utility and an off-sale liquor op~ration, consisting of two store sites. . ECONOMIC CONDITION AND OUTLOOK The. City of/.Shorewood is a suburb of the City of Minneapolis and is located 25 miles southwest of t,he central business district on the southern shore of Lake ~inn~tohka. . The City is predominantly a residential community with limited commercial businesses and one commercial shopping mall. The City is 6 square miles in area and has an estimated population of 6,430. While the City has experienced an accelerated rate of growth in residential development. during the 1980' s, the growth . rate has slowed in the 1990's. The City will continue to experience growth in it's residential base in the future, but because of the limited availability 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 EMPHA#3IS EMPHASIS ON GOVERNANCE The City Council. in its leadership role is effectively establishing a focus for city government in Shorewood. The Council has adopted a strong set of vEnues by whicn, decisions are to be made. It has adopted a statement of purpqse and established overall goals and expectations for the City. lt has identified issues facing the City and prior~tized them so that the staff can efficiently and effectively allocate time ahd resources. EMPHASIS ON SYSTEM IMPROVEMENTS The City Council has adopted an open government policy and is implementing it by televising City Council meetin~s, by improving quarterly citizen newsletters and by directing city sta.ff to improve communication to those residents affected by projects and special assessments. A series of neighborhood meetings on the updated COmprehensive Plan gives citizens an opportunity for one on one discussions with policy makers and for meaningful input on how Shorewood should dev~lop. . The City Council recognizes that its work consists of more than I responding to citizen requests and adopting an annual budget. The City Council's calendar consist~ of three phases. The first II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I phase is Planning, which includes employee and systems evaluations, review of the previous years work plan, review of the City's Comprehensive Plan Executive Summary, review of the statements of Purpose and Values, and identification and prioritization of issues for the next twelve and twenty-four months. The second phase is that of Programming. Each year the five-year Capital Improvement Program is reviewed and updated based upon priorities established in phase one. 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 is being utilized 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. A survey is conducted each year to measure citizen satisfaction with city services with results incorporated in the budget as specific objectives. Emphasis on Public Improvements The City is continuing to plan for and make public improvements in a number of areas. The Stormwater Management Utility was established as a funding mechanism for small drainage improvement projects and to pay for the City's share of major drainage projects. The fund had retafned earnings of $73,278 at the end of 1994. The City continued its park and trail improvement program. Trails were installed along Old Market Road from the Trunk Highway 7 service road to Vine Ridge Road; and in Silverwood Park as well as in Freeman Park. Silverwood Park improvements were completed with the installation of a tennis backboard and basketball court, as well as playground equipment, which includes two slides down the sliding hill. A playground area was installed in the family area in Freeman Park. The City Hall and Badger Park parking area was substantially completed in 1994. It includes an enlarged asphalt parking area, significant landscaping and a Park-and-Ride for the Regional Transit system. In addition to the scheduled equipment purchases from the Equipment Replacement Fund, a speed awareness display radar unit was purchased for the South Lake Minnetonka Public Safety Department for use within Shorewood. The City undertook a major sealcoating project in the east end of the City, which included five miles of City streets. The City Council approved the overhauling of the Woodhaven water system III IV I I I I I I I I I I I I I I I I I I I well, which will be completed in early 1995. The Trunk Highway 7 service road/Vine Hill Road water connection was made in conjunction with the State of Minnesota project to upgrade the Trunk Highway 7/Vine Hill Road intersection. To significantly enhance fire protection on Enchanted and Shady Islands, a series of three dry hydrants were installed in 1994. With that installation, fires can be fought on the islands 12 months a year with water drawn from the Lake Minnetonka rather than being hauled from the City of Mound. The City's lawsuit with the Metropolitan Council Wastewater Services (formerly the MWCC) was settled in 1994. The City was credited for 20 million gallons of flow which it had been overcharged. Similar credits will continue hereafter. The Metropolitan Council has committed by resolution to work in a collaborative process with the City to address concerns regarding its cost allocation system, inflow and infiltration issues, and alternative dispute resolution processes to deal with communities such as Shorewood which have concerns regarding the fairness and correctness of the agency's billing system. Shorewood's City Administrator will serve on a rate structure technical advisory committee for the Metropolitan Council. 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. The Shorewood City Administrator continues to serve as Chair of the Steering Committee of the Lake Minnetonka Area Cooperative Cities Group. 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 I I I I I I I I I I I I I I I I I I I 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 legal level of budgetary control is established at the activity 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, 1994 and the amount of increases or decreases in relation to the prior year's revenues. INCREASE REVENUES AND OTHER (DECREASE) FINANCING SOURCES AMOUNT % OF TOTAL FROM 1993 General Property Taxes $1,495,911 52.61% ($25,689) Licenses and Permits 256,243 9.01% 8,686 Intergovernmental 441,396 15.52% 12,982 Charges for Services 42,233 1. 49% 37,036 Fines and Forfeitures 73,998 2.60% 3,863 Special Assessments 248,844 8.75% (263,564) Interest on Investment::: 132,657 4.66% (33,101) Miscellaneous 112,406 3.95% 73,759 Proceeds of Bond Issue 0 0.00% (85,948) Operating Transfers In 40,000 1. 41% 0 TOTAL $2,843,688 100.00% ($271,976) The single largest change in revenue in 1994 from 1993 was in special assessment revenue. Prepayments of special assessments fell off in 1994 as a result of increasing interest rates, which increased seven times during the year. In addition, the 1974 Sewer assessment was paid in full, leading to a further reduction in special assessment revenue. Housing starts increased in 1994, thereby increasing the revenue from licenses and permits. Zoning application fees and newly initiated park maintenance fees significantly increased the charges for services area for 1994. The payment of a contract for deed held by the City accounted for the increase in miscellaneous revenue in 1994. Interest income v was lower in 1994 from 1993 resulting from the lower interest rates on investments made in previous years. General property taxes showed a decrease from 1993. The tax levy for 1994 was held at the 19.93 level. This, together with the increased tax capacity of property within the City, helped to lower the City's tax rate in 1994. The City Council has 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. Fines and forfeitures revenue increased from the previous year. A part-time traffic control officer hired for the City of Shorewood is directly attributable to the increase in this revenue. area. The following table presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended December 31, 1994 and the amount of increases or decreases in relation to the prior year's expenditures. INCREASE EXPENDITURES AND {DECREASE} OTHER USES AMOUNT % OF TOTAL FROM 1.993 CURRENT: General Government $755,097 22.62% $86,687 Public Safety 618,047 18.51% 37,894 Public Works 433,699 12.99% (2,525) Parks and Recreation 128,600 3.85% 9,127 Operating Transfers Out 601,500 18.02% 198,590 DEBT SERVICE: 0.00% Principal 681,000 20.40% 416,500 Interest 120,862 3.62% (21,027) TOTAL $3,338,805 100.00% $725,246 General government expenditures increased in 1994 due mainly to the purchase of a new computer system. This system is the latest in technology and will increase the productivity in City Hall. Public safety expenditures also increased due to growth, with Shorewood responsible for a larger portion of police and fire contracts, and the addition of a part-time traffic control officer. Public Works spending decreased slightly from 1993, and Park and Recreation expenditures increased by 7.1%, due mostly to park maintenance and park planning fees. Debt service paYments were sharply higher in 1994 due to a major bond refunding in 1993. Bonds were issued in 1993 to refund the 1984 Improvement (1987 Refunding) Bonds, which were called in February, 1994. Operating transfers out were also significantly VI I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I higher than the previous year. Transfers made amounts for unbudgeted 1994 capital projects, the amount of transfers for the year. in 1994 included thereby inflating GENERAL FUND BALANCE The fund balance of the General Fund decreased by $5,604 in 1994, a difference of 0.37%. The fund balance as of December 31, 1994 is $1,497,678. Economic conditions during the year caused larger than expected revenues and lower expenditures, which brought about a larger than anticipated operating surplus. Operating transfers out for capital projects caused a slight deficit, thereby lowering the General Fund balance. 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 an adequate fund balance as a reserve to meet expenditures in the General fund until property tax proceeds are received in July. As the fund balance now stands at 63% of the current year budget, further increases in fund balance will not be necessary in the near future. ENTERPRISE OPERATION The City's enterprise fund activities for 1994 are summarized as follows: OPERATING REVENUES Water Sewer Recycling Stormwater Liquor - Tonka Bay - Store I - Store II $262,892 744,354 67,605 44,065 25,073 23,945 724,114 OPERATING EXPENSES OPERATING INCOME (LOSS) $236,219 1,041,496 70,204 21,788 23,274 32,928 730,459 $26,673 (297,142) (2,599) 22,277 1,799 (8,983) (6,345) 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 capi tal of the fund and assumes continued customer contributions through special assessments. DEBT ADMINISTRATION As of December 31, 1994, the City's total debt outstanding totaled $2,770,500. Of this total, $1,800,000 were general obligation special assessment bonds issued to finance the construction of sanitary sewer, street, water and storm sewer improvements. Also included are $30,000 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 VII VIII I I I I I I I I I I I I I I I I I I I improvement bond issued for storm sewer improvements within a special storm drainage district has $20,500 outstanding at year end. The repayment of these bonds will be provided through an ad valorem tax levied against properties wi thin the storm drainage district. Tax increment revenue bonds of $920,000 were issued for construction of public improvements in the Waterford 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. As of the end of this year, only $264 in increments have been collected to retire this debt. The District will expire in April of the year 2,000. The City's bond rating as rated by Moody's Investor Service is "Ala on general obligation bond issues. Reasons cited by Moody's for this rating include the development and implementation of a five-year capital improvement plan, low outstanding debt, sound financial management, and anticipated maintenance of low debt ratios by the City. 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 posit;.ive 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 1994, the City of Shorewood earned $262,190 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. 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 deposi ts, 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. I I I I I I I I I I I I I I I I I I I 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. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Shorewood for its comprehensive annual financial report for the fiscal year ended December 31, 1993. In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 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 IX I I I I I I I I I I I I I I I I I I I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shorewood, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1993 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Fmance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. b--~~~ President !fh-/~ Executive Director I I I I I I I I I I I I I I I / I I I I CITY OF SHOlffiWOOD, ~INNESOTA SECTION II FINANCIAL SECTION " I I AlIX) I I INDEPENDENT AUDITOR'S REPORT CERTIFIED PUBLIC ACCOUNTANTS AND CoNSULTANTS I Honorable Mayor and City Council City of Shorewood, Minnesota I We have audited the accompanying general purpose financial statements of the City of Shorewood, Minnesota, for the year ended December 31, 1994 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. I I 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. I I I 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, 1994 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. 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. I I I The data designated as the "statistical section" in the accompanying table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. I I f . ~/ ~ ~ ~ I March 22, 1995 Minneapolis, Minnesota ABDO, ABDO & EICK Certified Public Accountants I Member of American Institute of Certified Public Accountants Private Companies Practice Section I 115 EAST HICKORY STREET, SUITE 302 P.O. BOX 3166 MANKATO, 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 NOKfHLAND PLAZA 3800 WEST 80TH STREET MINNEAPOLIS, MINNESOTA 55431 (612) 835-9090 FAX (612) 896-3620 I I I 1\ I I I I II I I I I I. I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the fmancial statements are intended to provide an overview and broad perspective of the City's fmancial position and operations. These statemen,ts present a summary set of information needed to control and analyze currept operations to detenrtine complifUlce with legal and budgetary limitations and to assist in fmancial planning. The following genetaI purpose financial statements are presented: Combined Balance Sheet.. All Fund Types and Account Groups Combined Statement of Revel)Ue, Expenditures and Changes in Fund BalaJ1ce - All Governmental Fund Types! Statement of Revenue, . Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Combined Statement of Revenue, Expen~s and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types CITY OF SHOREWOOD, MINNESOTA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1994 ASSETS AND OTHER DEBITS Cash and investments Cash held in escrow Receivables Taxes Accounts Accrued interest Contract Special assessments Due from other funds Inventories, at cost Prepaid items Property and equipment, net Bond discount, net Investments for deferred compensation plans, at market Other debits Amounts available for debt service Amounts to be provided for general long-term debt TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Refundable deposits payable Deferred revenue Due to other funds Bonds payable Deferred compensation funds held for participants TOTAL LIABILITIES EQUITY AND OTHER CREDITS Contributed capital Investment in general fixed assets Retained earnings - unreserved Fund balance Reserved Unreserved Designated Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY AND OTHER CREDITS See Notes to Financial Statements. -2- I I Governmental Fund Types General $1 503 390 52 161 23 779 49 187 1 930 $1 630 447 $ 37 901 12 686 24 760 57 422 132 769 1 497 678 1 497 678 $1 630 447 Debt Service $1 445 419 37 806 627 957 $2 112 036 $ 626 457 626 457 1 485 579 1 485 579 $2 112 036 Capital Proiects I $1 103 722 I 854 28 100 35 162 I 8 446 140 259 I I I $1 315 689 I $ 9 659 I 6 676 140 259 I 156 594 I I 1 279 718 (120 623) I 1 159 095 I $1 315 689 I I I I I I Exhibit 1 Proprietary Fiduciary Fund Type Fund Type Account Groups I General Total General Long-term (Memorandum Only) Enterprise Aqency Fixed Assets Debt 1994 1993 I $1 398 243 $ $ $ $ 5 450 774 $ 5 815 615 225 197 564 53 579 55 723 I 255 765 307 644 269 294 41 088 163 243 107 512 87 642 52 192 690 525 886 886 I 140 259 59 153 415 153 415 148 896 13 434 13 434 17 221 6 040 832 3 894 635 9 935 467 9 526 936 I 364 364 549 128 979 128 979 111 681 I 1 485 579 1 485 579 1 999 197 1 275 755 1 275 755 1 444 307 I $7 955 897 $128 979 $3 894 635 $2 761 334 $19 799 017 $20 696 715 I $ 130 075 $ $ $ $ 177 635 $ 456 982 2 843 20 834 36 363 36 994 24 760 84 191 690 555 964 192 I 140 259 59 30 000 2 740 500 2 770 500 3 466 500 128 979 128 979 111 681 I 162 918 128 979 2 761 334 3 969 051 5 120 599 7 100 609 7 100 609 6 894 145 I 3 894 635 3 894 635 3 454 841 692 370 692 370 869 694 1 485 579 2 033 382 I 2777 396 2 385 323 (120 623) (61 269) I 7 792 979 3 894 635 15 829 966 15 576 116 $7 955 897 $128 979 ~ $3 894 635 $2 761 334 $19 799 017 $20 696 715 I I I -3- I I CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1994 Debt General Service REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Special assessments Interest on investments Other $1 487 398 $ 8 513 256 243 441 040 356 42 233 73 998 248 844 78 021 54 636 112 406 TOTAL REVENUE 2 491 339 312 349 EXPENDITURES Current General government Public safety Public works Parks and recreation Capital outlay Debt service Principal Interest and service charges 755 097 6J.8 047 433 699 128 600 681 000 J.20 862 TOTAL EXPENDITURES 1 935 443 801 862 EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Proceeds of bonds issued Operating transfers in Operating transfers out 555 896 (489 5J.3) 40 000 (601 500) TOTAL OTHER FINANCING SOURCES (USES) (561 500) EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (5 604) (489 513) FUND BALANCE, JANUARY 1 1 503 282 1 999 197 FUND EQUITY TRANSFER IN 426 732 FUND EQUITY TRANSFER (OUT) (450 837) FUND BALANCE, DECEMBER 31 $1 497 678 $1 485 579 See Notes to Financial Statements. -4- I Capital Pro;ects I $ 114 J.68 I 16 595 64 982 68 622 I 264 367 I I 616 434 I 6J.6 434 I (352 067) I 954 425 (322 325) I 632 J.OO I 280 033 854 957 I 105 115 (81 010) $1 159 095 I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 3 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 1994 REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Interest on investments Other TOTAL REVENUE EXPENDITURES General government Public safety Public works Parks and recreation TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. Budqet $1 491 888 146 500 439 015 18 000 75 000 65 000 107 800 2 343 203 793 568 631 365 430 539 115 352 1 970 824 372 379 40 000 (471 500) (431 500) $ (59 121) -6- Actual $1 487 398 256 243 441 040 42 233 73 998 78 021 112 406 2 491 339 755 097 618 047 433 699 128 600 1 935 443 555 896 40 000 (601 500) (561 500) (5 604) 1 503 282 $1 497 678 I Variance - Favorable (Unfavorable) I $ (4 490) 109 743 2 025 24 233 (1 002) I I 13 021 4 606 I I 148 136 38 471 13 318 (3 160) (13 248) I 35 381 183 517 I (130 000) I (130 000) I $ 53 517 I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 4 COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1994 OPERATING REVENUE Sales Less cost of sales $ 773 132 615 640 GROSS PROFIT 157 492 Charges for services Permits and connection fees 964 404 154 512 GROSS PROFIT AND REVENUE 1 276 408 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 121 858 10 009 19 974 261 896 38 784 194 710 1 301 16 276 16 913 50 922 730 268 30 557 6 594 40 666 TOTAL OPERATING EXPENSES 1 540 728 OPERATING LOSS (264 320) OTHER REVENUE (EXPENSES) General property taxes Interest on investments Other income Interest expense 18 689 64 551 78 391 (4 035) 157 596 (106 724) TOTAL OTHER REVENUE (EXPENSES) LOSS BEFORE TRANSFERS OPERATING TRANSFERS FROM OTHER FUNDS 10 000 OPERATING TRANSFERS TO OTHER FUNDS (80 600) (177 324) NET LOSS RETAINED EARNINGS, JANUARY 1 869 694 FUND EQUITY TRANSFER IN 232 604 FUND EQUITY TRANSFER OUT (232 604) $ 692 370 RETAINED EARNINGS, DECEMBER 31 See Notes to Financial Statements. -7- CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1994 Exhibit 5 I I CASH FLOWS FROM OPERATING ACTIVITIES Operating loss Other income related to operations Adjustments to reconcile operating loss 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 I I I I CASH FLOWS PROVIDED BY OPERATING ACTIVITIES I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds Operating transfers from other funds I CASH FLOWS USED BY NONCAPITAL FINANCING ACTIVITIES I 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 Fund equity transfer in Fund equity transfer out I CASH FLOWS USED BY CAPITAL AND RELATED FINANCING ACTIVITIES I CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments I DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 I CASH AND CASH EQUIVALENTS, DECEMBER 31 I NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds Disposal of property and equipment $ 206 464 (24 917) I TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $ 181 547 I I See Notes to Financial Statements. I -8- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I 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. I A. Reportinq Entitv I The City of Shorewood is a statutory city operating in accordance with the Plan A form of government. As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Shorewood (the primary government) and its component units. The City of Shorewood does not have any component units requiring either a blended or discrete presentation. I I 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. I I 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 fund types account for all or nearly all of a government's general activities, proprietary fund types account for enterprise activities, and fiduciary fund types are used to account for assets held on behalf of others. The fund types accounted for within each broad fund category follow: I I I GOVERNMENTAL FUND TYPES: I 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. I 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. I Capital Projects Funds - Capital Projects Funds are used to account for all resources used for the acquisition or construction of major capital facilities. I I I -9- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I PROPRIETARY FUND TYPES: I 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. I I FIDUCIARY FUND TYPES: I 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: I I 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 ro~ds, 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. I I I I All proprietary fund types 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. I I C. Basis of Accountinq The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types 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. I I I I -10- I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I All proprietary fund types 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. I I 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. I I 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. I Proprietary fund types 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. I Fixed assets are recorded in the proprietary fund types 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: I I Furniture and equipment Distribution and collection systems 5 - 10 years 40 years D. Budqets 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. The City follows these procedures in establishing the budgetary data reflected in the financial statements: I I I 1. Prior to January 1, the budget is adopted by the City Council. I 2. Formal budgetary integration is employed as a management control device during the year for the General Fund. Budgetary control is exercised by the Council at the activity level but management control is exercised at the line item level. I 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 1994 in relation to the original appropriation. I I I -11- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I 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. I E. Cash and Investments I F. Cash and Cash Equivalents For purposes of the statement of cash flows of the Enterprise Funds, all highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. I G. Inventories I Inventories are valued at average cost, which approximates market, using I the first-injfirst-out (FIFO) method. H. Prepaid Items Payments made to vendors for service that will benefit periods beyond December 31, 1994 are recorded as prepaid items. I 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. I I I Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and I lighting systems are not capitalized, as these assets are immovable and of value only to the government. Assets in the general fixed assets account group are not depreciated. I Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight-line method. 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 I are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets. J. Compensated Absences I 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. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. I I I -12- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I K. Lonq-term Obliqations I 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. I Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. I 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. I L. Fund Eauitv I 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. I M. Interfund Transactions I I 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. I 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. I N. Memorandum Only - Total Columns I Total columns on the general purpose financial statements are captioned "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 cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. I O. Comparative Data I I 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. I I -13- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 2: LEGAL COMPLIANCE - BUDGETS 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 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. I The proposed budget is presented to the government's council for review. The 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 revenue estimates must be changed by an affirmative vote of a majority of the government's council. I I Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities are authorized by the City Council in accordance with the City policy at the request of the City Administrator. The legal level of budgetary control is therefore at the activity level. During the year, supplementary appropriations were not material. I I The City Administrator is authorized to approve transfers of appropriations between individual expenditure accounts within a department's budget. However, interdepartmental or interfund transfers of appropriations or increases in appropriations are required to be authorized by the City Council. I Note 3: DEPOSITS AND INVESTMENTS I Cash surpluses are pooled and invested in certificates of deposit and short-term government securities. Investment earnings are allocated to funds I on the basis of average cash balances. Investments are stated at cost, which approximates market value, and are not identified with specific funds. Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110\ of the deposits not covered by insurance or bonds (140\ in the case of mortgage notes pledged). I I I 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. I Bank Balances Carrying Amount I Balances at December 31, 1994: Insured or collateralized by securities held by the City or its agent in the City's name $2 431 689 $2 388 143 I Investments I 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 I its agencies. -14- I I I Note 3: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 DEPOSITS AND INVESTMENTS - CONTINUED 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. c. Bankers acceptances of United States Banks eligible for purchase by the Federal Reserve System. d. Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 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. Balances at December 31, 1994: Securities Credit Risk Cateqorv Carrying Market TYPe 1 2 ~ Amount Value U.S. Government $2 371 888 $ $ $2 371 888 $2 350 664 Commercial Paper 690 743 690 743 698 648 Total investments $3 062 631 $ $ 3 062 631 3 049 312 Investment Pools Deferred compensation investments 128 979 128 979 Total Investments $3 191 610 $3 178 291 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. The following is a summary of the cash and temporary investments reported on the combined balance sheet as of December 31: Deposits Investments $2 388 143 3 191 610 Total $5 579 753 Classified on the combined balance sheet as: Cash and investments Investments for deferred compensation plans, at market $5 450 774 128 979 Total $5 579 753 -15- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 Note 4: RECEIVABLES A. Property Taxes I I I The City Council annually adopts a tax levy by December 28 and certifies 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 Treasurer and tax settlements are made to the City three times each year. Taxes payable on homestead property, as defined by State Statutes, are II 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 II equal installments in July and December each year. I Allowances are provided for the full amount of delinquent taxes except those collected by the County in November and December and remitted to the I City withi~ 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. Special Assessments Special assessments receivable include the following components: . Delinquent - includes amounts billed to property owners but not paid. . Deferred - includes assessment installments which will be billed to property owners in future years. I I I I Special assessments are recognized as a receivable and deferred revenue when the assessments are certified to the County for collection. Special I assessments are recognized as revenue when received in cash. Note 5: FIXED ASSETS The following is a summary of changes in the general fixed assets account group during,the year: Land Buildings and structures Improvements other than buildings Furniture and equip- ment Balance January 1, 1994 $ 456 826 1 327 073 773 667 897 275 $3 454 841 Balance December 31, Retirements 1994 Additions $ $ $ 456 826 1 327 073 384 604 1 158 271 952 465 44 078 99 268 Total general fixed assets $ 44 078 $3 894 635 $483 872 -16- I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 5: FIXED ASSETS - CONTINUED I A summary of proprietary fund type property and equipment at December 31, 1994 follows: I Liquor Public Utilities Funds Water Sewer Store II Total Furniture and equipment $ 24 148 $ 36 661 $ 21 288 $ 82 097 Collection and distribution systems 3 046 026 7 345 787 10 391 813 Total 3 070 174 7 382 448 21 288 10 473 910 Less accumulated depreciation (674 614) (3 748 195) (10 269) (4 433 078) Net property, plant and equipment $2 395 560 $3 634 253 $ 11 019 $ 6 040 832 I I I Note 6: LONG-TERM OBLIGATIONS I 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, 1994: I General Long-term Debt Account Group Special Tax Increment Assessment Revenue Bond Proprietary Funds I Revenue Total Payable January 1, 1994 Debt retired $2 501 500 (681 000) $920 000 $ 45 000 (15 000) $ 30 000 $3 466 500 (696 000) $2 770 500 I Payable December 31, 1994 $1 820 500 $920 000 I The long-term bonded debt obligations outstanding at December 31, 1994 are summarized as follows: I Types of Bonds Maturities Balance December 31, Rate 1994 2.90 - 8.00% $1 820 500 9.00 920 000 8.50 30 000 $2 770 500 I General obligation special assessment bonds Tax increment revenue bonds General obligation water revenue bonds 1995 - 2004 1995 - 2000 1995 - 1996 I Total I I I -17- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 6: LONG-TERM OBLIGATIONS - CONTINUED I The annual requirements to amortize all bonded debt outstanding at December 31, 1994, including interest payments totaling $1,060,231 are as follows: I General Long-term Debt Account Group Year Ending Special Tax Increment December 31, Assessment Revenue Bond 1995 $ 326 477 $ 603 015 1996 310 505 215 641 1997 293 955 201 691 1998 274 510 187 889 1999 262 543 174 090 2000 - 2004 786 413 160 177 Total $2 254 403 $1 542 503 Proprietary Funds Revenue Total $ 947 042 542 421 495 646 462 399 436 633 946 590 $3 830 731 I $ 17 550 16 275 I I $ 33 825 Long-term Obligations - Other Changes in long-term obligations other than bonds are summarized as follows: Compensated Absences Payable I I Payable, December 31 $ 22 004 (1 170) $ 20 834 I Payable, January 1 Net change in compensated absences Note 7: OPERATING LEASES I The City leases space for both liquor store operations. These leases are considered, for accounting purposes, to be operating leases. The lease for liquor store #1 was terminated in January, 1994. Lease expense for the year ended December 31, 1994 amounted to $30,557. Future minimum lease payments for the liquor store #2 and Tonka Bay leases are as follows: I Years Ending December 31, Store II Tonka Bav 1995 $ 30 174 $ 12 000 1996 23 192 12 000 1997 12 000 Total $ 53 366 $ 36 000 I I I The new lease for the Tonka Bay Store began December 12, 1994 and will run through December 31, 1997. I Note 8: FUND EQUITY The various components of fund equity are contributed capital, retained earnings, and fund balance. I Contributed Capital - The amount represents the value of assets contributed to the enterprise funds by other City funds. Additions during the year totalled $206,464. I 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, 1994: I -18- I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 8: FUND EQUITY - CONTINUED I Debt Service Funds Shorewood Oaks 1991 Improvement and Refunding Shady Hills Storm Sewer Improvement 1993 Improvement Waterford III Tax Increment I Total Reserved Fund Balance $ 941 577 428 963 4 701 110 071 267 $1 485 579 I Designated Fund Balance - Designated amounts indicate tentative plans for future uses of financial resources. The following unreserved fund balances have been designated: I General Fund Designated for working capital Capital Projects Funds Designated for capital projects Street Reconstruction Capital Improvements Park Capital Improvement Equipment Replacement MSA Construction Manor Park Warming House Trail Capital Improvement Total Designated Fund Balance $1 497 678 I 672 081 86 615 1.47 898 214 344 93 091 1 341 64 348 I I $2 777 396 I Unreserved and undesignated amounts are available to finance current and future years' expenditures. Note 9: COMPLIANCE AND ACCOUNTABILITY I Fund Deficits I The following funds have a deficit fund balance or retained earnings as of December 31, 1994: I Capital Projects Funds Silverwood Park Grading City Hall Parking Lot Seasons Improvements Island Dry Hydrant Improvement Vine Hill Improvement Old Market Road Trail Enterprise Fund Water Fund $ 13 509 7 323 58 732 5 108 20 312 15 639 159 484 I I The deficits in all funds will be eliminated by future revenues. I I I -19- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 Note 10: SEGMENT INFORMATION - PROPRIETARY FUNDS Water Sales less cost of sales of $41,088 and $574,552, respectively $ Charges for services 184 204 Permits and connection fees 78 688 Gross profit and revenue Expenses excluding depreciation Income before depreciation Depreciation Operating income (loss) Other revenue (expenses) General property taxes Interest on investments Other income (expense) Interest expense Total other revenue (expenses) Income (loss) before transfers Operating transfers to other funds, net Net income 262 892 159 179 103 713 77 040 26 673 18 689 12 535 7 200 (4 035) 34 389 61. 062 (34 600) Storm Water Mgmt. Sewer Recyclinq Utility $ $ $ 668 530 67 605 44 065 75 824 744 354 67 605 44 065 857 996 70 204 21 788 (1.1.3 642) 183 500 (2 599) 22 277 (297 142) (2 599) 22 277 30 425 30 351. 1. 767 3 1.1. 2 60 776 1. 767 3 1.1. 2 (236 366) (6 000) (832) 25 389 26 462 $ (242 366) $ 1.0 000 (832) $ 35 389 $ 4 023 $ (177 324) $ 1.20 21.3 30 000 2 741 209 2 705 482 Note 11: DEFERRED COMPENSATION PLAN Liquor Tonka Bay, Store I and Store II $1.57 492 157 492 1.69 665 (1.2 173) 1 356 (13 529) 16 71.2 40 840 57 552 44 023 (40 000) I I II Total II $ 1.57 492 964 404 II 1.54 512 1 276 408 II 1 278 832 (2 424) II 261 896 (264 320) II 18 689 II 64 551. II 78 391. (4 035) 157 596 II (106 724) (70 600) II $ 324 558 $ 902 341 $ 44 445 $ 73 278 $422 161 $1 766 783 II Net working capital Additions to property and equipment Bonds payable from operating revenues Total assets Total equity 98 1.08 4 576 709 48 81.5 73 278 1.2 1.27 51.5 886 433 1.80 230 448 II 4 536 594 44 445 73 278 30 000 7 955 897 I 7 792 979 I 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. -20- II II I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 11: DEFERRED COMPENSATION PLAN - CONTINUED I 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 (un~il 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. I I 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. I 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. I Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description I 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, 1994, was $582,892; the City's total payroll was $609,597. I I I PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for 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 I, 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 PEPFF members, the annuity accrual rate is 2.65 percent for each year of service. For PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. I I I I I 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. I I -21- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED I B. Contributions Required and Contributions Made I 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 and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's 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 the plans are as follows: I I Statutory Rates Employees Employer Required Rates* I PERF (Basic and Coordinated Plans) 4.30% 4.60% 9.58% I * The recommended rates scheduled above represent the required rates for fiscal year 1994 contributions as reported in the July 1, 1993, actuarial valuation reports. I Total contributions made by the City during fiscal year 1994 were: Amounts Employees Employer Percentage of Covered Payroll Employees Employer I PERF $ 24 582 $ 26 034 4.21% 4.47\ I The City's contribution for the year ended June 30, 1994 to the PERF represented .01 percent of total contributions required of all participating entities. C. Fundinq Status and Proqress 1. Pension Benefit Obligations I I The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of I 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 I 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 I individual employers. The pension benefit obligations as of June 30, 1994, are shown below: (In thousands) PERF I Total pension benefit obligations Net assets available for benefits, at cost (Market Values for PERF = $4,762,519) Unfunded (assets in excess of) pension benefit obligation $5 625 598 4 733 845 I $ 891 753 I -22- I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 12: DEFINED BENEFIT PENSION PLAN - STATEWIDE - CONTINUED I The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of June 30, 1994. I For the PERF, significant actuarial assumptions used in the calculation of the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5.0 percent per year, compounded annually, following retirement; (b) projected salary increases taken from a select and ultimate table; (c) payroll growth at 6.0 percent per year, consisting of 5.0 percent for inflation and 1.0 percent due to growth in group size; (d) post- retirement benefit increases that are accounted for by the 5.0 percent rate of return assumption following retirement; and (e) mortality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five years for each active member. I I I Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5.0 percent per year, compounded annually, following retirement; (b) projected salary increases of 6.5 percent per year, compounded annually attributable to the affects of inflation; (c) post-retirement increases that are accounted for by the 5.0 percent rate of return assumption following retirement; and (d) mortality rates based on the 1971 Group Annuity Mortality Table projected to 1984 for males and females. I I I 2. Changes in Benefit provisions I The 1994 legislative session did not include any benefit improvements which would impact funding costs for the PERF. I 3. Changes in Actuarial Assumptions Prior to fiscal year 1994, the salary increase assumption and the mortality tables used in the calculation of pension benefit obligation for the PERF were the same as those specified for the PEPFF. For the July 1, 1994 actuarial valuation, PERA's board of trustees approved new mortality rates updated to the 1983 Group Annuity Mortality Table, salary increases which were changed to a select and ultimate table and a new payroll growth assumption which was changed from 6.5 percent to 6.0 percent. These changes were made to reflect actual experience of the plan. I I With the adoption of the actuarial assumption changes and the new mortality tables for the PERF, the pension benefit obligation increased $56,596,000. The actuarial assumption changes also necessitated a $81,201,000 transfer from the PERF Benefit Reserve to the PERF Minnesota Post Retirement Investment Fund (MPRIF) Reserve to finance the increased obligation for future retirement benefits. The change in the mortality rate assumption increased the PERF's costs because pensioners are living longer than assumed previously. The change in the salary increase assumption, however, offset some of the additional costs because lower salary increases generally translate into lower benefit liabilities in the future. I I I I -23- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 12: DEFINED BENEFIT PENSION PLAN - STATEWIDE - CONTINUED I D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1994. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. I I E. Related Party Investments As of June 30, 1994, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. I Note J.3: ADVANCE REFUNDING AND DEFEASANCE OF DEBT Advance Refundinq Issues - Prior Years I 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. The original refunded bonds were redeemed on February 1, 1994. I I On October 11, 1993, the City issued general obligation improvement bonds in the amount of $325,000. A portion of the bond proceeds, along with funds available in the 1984 Improvement (1987 Refunding) Debt Service Fund, were used to call, on February 1, 1994, the remaining G.O. Improvement Bonds, Series 1987A. I I Note 14: TAX INCREMENT REVENUE BONDS 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 Waterford 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 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. I I I I The bonds payable are reported as a liability in the General Long-term Debt Account Group in the financial statements even though: I . The bonds issued are tax increment revenue bonds. . The bonds are not backed by the full faith and credit of the City. I . The bonds will be repaid only to the extent that tax increments are generated from the Tax Increment Financing District. I I -24- I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 15: JOINT POWERS AGREEMENT I The City of Shorewood participates in a joint powers agreement with the cities of 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 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 1994 by the City of Shorewood is 43.2t. Any budget shortfall is made up first from department reserves, with any excess shortfall assessed to each participating community according to the formula. The current agreement continues through December 31, 1997. I I I The Department has accounts payable, and accrued payroll and compensated absences in the General Fund of $140,222, and deferred compensation benefits payable in the Agency Fund of $123,590 at year end. There is no other current or long-term debt outstanding as of December 31, 1994. The following is a summary of the Department's balance sheet as of December 31, 1994 and the statement of revenue, expenditures and changes in fund balance for the General Fund for the year ended December 31, 1994. This information is taken from the financial statements of the Department which may be obtained directly from them. I I I SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1994 I General Totals General Agency Fixed (Memorandum OnlY) Fund Fund Assets 1994 1993 Total assets $249 791 $123 590 $300 352 $673 733 $630 625 Liabilities $140 222 $123 590 $ $263 812 $244 289 Fund equity 109 569 300 352 409 921 386 336 Total liabilities and fund equity $249 791 $123 590 $300 352 $673 733 $630 625 I I I I 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, 1994 I 1994 1993 Variance - Favorable Budqet Actual (Unfavorable) Actual Total revenue $1 046 830 $1 088 905 $ 42 075 $1 058 711 Total expenditures 1 on 330 1 073 448 (2 118) 1 061 502 Excess of revenue over (under) expenditures $ (24 500) 15 457 $ 39 957 (2 791) Fund balance, January 1 94 112 96 903 Fund balance, December 31 $ 109 569 $ 94 112 I I I -25- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 I Note 16: INTERFUND RECEIVABLES AND PAYABLES I The following is a summary of interfund receivables and payables at year end: Total Payable Receivable To From $114 526 $ 13 470 12 263 13 470 33 957 58 434 2 125 20 010 12 263 $140 259 $140 259 I Capital Projects Funds Street Reconstruction Park Capital Improvement Trail Capital Improvement Silverwood Park Improvement City Hall Parking Lot Seasons Improvements Island Dry Hydrant Improvement Vine Hill Improvement Old Market Road Trail I I I Note 17: RELOCATION OF MUNICIPAL LIQUOR STORE #1 I In January, 1994, the City's liquor store #1 was closed because of reconstruction of the business intersection where it was located. The City has entered into a lease for a new location for this store, which opened in February, 1995. I Note 18: TONKA BAY LIQUOR OPERATING LEASE I In December, 1994, the City of Shorewood entered into an agreement with the City of Tonka Bay to lease and operate its municipal liquor operations. The lease extends over a period of three years, ending on December 31, 1997. Under the agreement, a base rent of $1,000 per month, plus a percentage rent of 2% of gross sales in excess of $400,000 per year will be paid to the City of Tonka Bay. Shorewood leases the building and fixtures and has purchased the merchandise inventory from Tonka Bay. The City of Shorewood will operate the location as part of its current municipal liquor operation. I I I I I I I I I -26- I I I I. I I I I I 1\ I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA THE GENERAL FUND The General Fund is used to account for resources 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 variety an.d 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. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-1 GENERAL FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1994 AND 1993 1994 1993 ASSETS Cash and investments $1 503 390 $1 525 855 Cash held in escrow 34 185 Receivables Taxes 52 161 55 007 Accounts 23 779 51 806 Accrued interest 49 187 35 698 Contract 87 642 Special assessments Delinquent 1 742 794 Deferred 188 861 TOTAL ASSETS $1 630 447 $1 791 848 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable $ 37 901 $ 59 128 Salaries payable 12 686 11 965 Refundable deposits payable 24 760 84 191 Deferred revenue 57 422 133 282 TOTAL LIABILITIES 132 769 288 566 FUND BALANCE Reserved for cash held in escrow 34 185 Unreserved Designated for projects 75 000 Designated for working capital 1 497 678 1 394 097 TOTAL FUND BALANCE 1 497 678 1 503 282 TOTAL LIABILITIES AND FUND BALANCE $1 630 447 $1 791 848 -27- 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, 1994 (With comparative amounts for the year ended December 31, 1993) 1994 1993 I Variance - Favorable I Budqet Actual (Unfavorable) Actual REVENUE General property taxes General property taxes $1 491 888 $1 410 613 $ (81 275) $1 437 163 I Fiscal disparities 76 785 76 785 76 958 Forfeit tax sales 1 512 Total 1 491 888 1 487 398 (4 490) 1 515 633 I Licenses and permits Business 9 700 10 175 475 10 150 Nonbusiness 136 800 246 068 109 268 237 407 I Total 146 500 256 243 109 743 247 557 Intergovernmental I Federal Community development block grant 2 025 2 025 State I Property tax credits 425 265 425 265 412 352 Other 13 750 13 750 13 750 Total 439 015 441 040 2 025 426 102 I Charges for services General government 7 500 33 447 25 947 4 868 Parks and recreation 10 500 8 786 (1 714) 329 I Total 18 000 42 233 24 233 5 197 Fines and forfeitures 75 000 73 998 (1 002) 70 135 I Miscellaneous revenue Special assessments 265 Interest on investments 65 000 78 021 13 021 86 374 I Other 107 800 112 406 4 606 38 647 Total 172 800 190 427 17 627 125 286 TOTAL REVENUE 2 343 203 2 491 339 148 136 2 389 910 I I I I I -28- Continued I I I I I I I I I I I I I I I I I I I I 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, 1994 (wi th comparative amounts for the year ended December 31, 1993) 1994 1993 Variance - Favorable Budqet Actual (Unfavorable) Actual EXPENDITURES General government Mayor and Council Personal services $ 13 714 $ 13 528 $ 186 $ 13 621 Supplies 500 1 636 (1 136) 841 Other services and charges 36 417 26 343 10 074 32 302 Contingency 25 000 25 000 Capital outlay 600 600 Total 76 231 41 507 34 724 46 764 Administrative Personal services 85 984 87 804 (1 820) 83 789 Supplies 800 550 250 960 Other services and charges 8 300 6 708 1 592 8 732 Total 95 084 95 062 22 93 481 Finance Personal services 82 232 77 651 4 581 74 109 Supplies 3 400 2 796 604 2 794 Other services and charges 7 150 5 001 2 149 6 059 Total 92 782 85 448 7 334 82 962 Professional services Supplies 500 1 004 (504) 836 Other services and charges 177 160 197 185 (20 025) 181 940 Total 177 660 198 189 (20 529) 182 776 Planning and zoning Personal services 84 267 87 396 (3 129) 86 769 Supplies 2 000 813 1 187 2 124 Other services and charges 6 700 4 516 2 184 4 584 Total 92 967 92 725 242 93 477 Municipal building Supplies 8 050 5 346 2 704 7 316 Other services and charges 84 000 79 388 4 612 77 075 Capital outlay 76 100 75 179 921 Total 168 150 159 913 8 237 84 391 -29- Continued I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND Continued STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 1994 {With comparative amounts for the year ended December 31, 1993} I 1994 1993 Variance - Favorable I Budqet Actual {Unfavorable} Actual EXPENDITURES - CONTINUED General government I Other general government services Personal services $ 65 669 $ 62 453 $ 3 216 $ 62 416 Supplies 13 750 10 822 2 928 11 610 Other services and charges 11 275 8 978 2 297 10 533 I Total 90 694 82 253 8 441 84 559 Total general government 793 568 755 097 38 471 668 410 I Public safety Police protection I Supplies 500 74 426 Other services and charges 429 541 423 873 5 668 400 703 Total 430 041 423 947 6 094 400 703 Fire protection I Other services and charges 109 584 109 747 {163} 101 542 Protective inspection I Personal services 64 365 56 761 7 604 56 231 Supplies 1 775 388 1 387 Other services and charges 25 000 26 767 {1 767} 27 677 Capital outlay 600 437 163 {6 OOO} I Total 91 740 84 353 7 387 77 908 Total public safety 631 365 618 047 13 318 580 153 I Public works General maintenance Personal services 113 785 138 849 {25 064} 145 720 I Supplies 34 000 33 960 40 29 252 Other services and charges 19 100 15 764 3 336 17 220 Capital outlay 1 000 5 976 (4 976) 9 638 Total 167 885 194 549 (26 664) 201 830 I Streets and roadways Personal services 92 528 80 561 11 967 86 080 I Supplies 30 000 30 663 {663} 30 822 Other services and charges 37 600 41 277 (3 677) 33 953 Total 160 128 152 501 7 627 150 855 I Snow and ice removal Personal services 24 510 19 658 4 852 16 213 Supplies 14 000 13 551 449 11 366 I Total 38 510 33 209 5 301 27 579 I -30- Continued 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, 1994 (With comparative amounts for the year ended December 31, 1993) I 1994 1993 Variance - I Favorable Budqet Actual (Unfavorable) Actual EXPENDITURES - CONTINUED Public works I Traffic control Supplies $ 4 000 $ 2 469 $ 1 531 $ 3 055 Other services and charges 28 500 31 992 (3 492) 28 911 I Total 32 500 34 461 (1 961) 31 966 Sanitation and waste removal Personal services 609 579 30 484 I Other services and charges 4 000 2 450 1 550 2 5<;>7 Total 4 609 3 029 1 580 2 991 I Tree maintenance Personal services 14 707 3 004 11 703 5 524 Supplies 12 200 12 946 (746) 15 479 I Total 26 907 15 950 10 957 21 003 Total public works 430 539 433 699 (3 160) 436 224 I Parks and recreation Personal services 71 652 82 837 (11 185) 75 092 Supplies 22 150 19 006 3 144 17 029 Other services and charges 20 300 25 783 (5 483) 24 099 I Capital outlay 1 250 974 276 3 253 Total parks and recreation 115 352 128 600 (13 248) 119 473 I TOTAL EXPENDITURES 1 970 824 1 935 443 35 381 1 804 260 EXCESS REVENUE (EXPENDITURES) 372 379 555 896 183 517 585 650 I OTHER FINANCING SOURCES (USES) Operating transfers in 40 000 40 000 40 000 Operating transfers out (471 500) (601 500) (130 000) (380 000) I TOTAL OTHER FINANCING SOURCES (USES) (431 500) (561 500) (130 000) (340 000) I EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (59 121) (5 604) $ 53 517 245 650 I FUND BALANCE, JANUARY 1 1 503 282 1 257 632 FUND BALANCE, DECEMBER 31 $1 497 678 $1 503 282 I I I -31- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA '\ DEBT SERVICE FUNDS Debt service funds are used\to account for the payment of interest and principal on long- term general obligation.debt other than debt issued for and serviced primarily by enterprise funds. 1984 Improveptent (1987 Refundina:) Fund - This fund was established to account for the accumulation' of resources for the payment of interest and principal on bon9s issued for 1984. street and utility improvements. This issue was refunded by the 1993 ImpJ;Ovement and Refunding Bonds, and the residual fund balance was transfer:red to the 1993 Improvement and Refunding Fund. . Shorewood ,Oaks Fund - This fund was established to account for the accumulation of resources for the payrtlent of interest and principal On bonds issued for street and utility impro;vements in the Shorewood Oaks development. 1974 Sewer Improvement Fund -.This fund was !tstablished to account for the accumulation of reSources for the payment of interest and principal on \ bonds issued for 1974 ~anitary sewer improvements. This issue was retired in 1994, and th~ residual flln,d balance was transferred to the Capital Improvements Fqnd. " 1991 Improvement and.. Refundina: Fund - This fund was established to account for the accumulation of resources for the payment of interest and principal. on. bonds issued for the SE water treatment plant, Pine Bend improvements, Church Road improvements, and to refund the 1986 improvement bonds on the call date. , ' Shady Hills Storm Sewer Imprqvement Fund - This fund was established to account for the accumulation of resources for payment of interest and principal on bonds issued for the Shady Hills Storm Seyver Improvements. '1993. Improvement and Refu~din~ Fund _:This fund was established to account for the accumulation of resources for payment of int~rest and principal on bonds issued for the Season's development improvements, and to ref1Jnd the 1987 refunding bonds on the call date. / . Waterford III Tax Increment Fund - This fund was established to account for the' accumulation of resources for payment of interest and principal on bonds issued for the Waterford ill Intersection Improvements. ' . CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1994 (With comparative totals as of December 31, 1993) I I TOTAL ASSETS 1984 Improvement (1987 1974 Sewer Refundinq) Shorewood Oaks Improvement $ $914 454 $ 27 123 20 469 $ $962 046 $ I ASSETS Cash and investments Receivables Taxes Accrued interest Special assessments Delinquent Deferred I I I LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Deferred revenue I $ $ $ 20 469 I TOTAL LIABILITIES 20 469 FUND BALANCE Reserved for debt service 941 577 I TOTAL LIABILITIES AND FUND BALANCE $ $962 046 $ I I I I I I I I I -32- I I I Exhibit B-1 I 1991 1993 Improvement Shady Hills Improvement and Storm Sewer and Waterford III Total I Refundinq Improvement Refundinq Tax Increment 1994 1993 $418 299 $ 3 994 $108 432 $ 240 $1 445 419 $1 963 835 I 829 25 854 262 10 131 550 2 37 806 33 268 9 044 3 090 12 134 5 415 I 399 789 195 565 615 823 819 038 $837 263 $ 4 823 $307 637 $ 267 $2 112 036 $2 821 818 I $ $ $ $ $ $ 294 I 408 300 12.2 197 566 626 457 ~22 327 408 300 122 197 566 626 457 822 621 I 428 963 4 701 110 071 267 1 485 579 1 999 197 $837 263 $ 4 823 $307 637 $ 267 $2 112 036 $2 821 818 I I I I I I I I I -33- I CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1994 (With comparative totals for the year ended December 31, 1993) I I 1984 Improvement (1987 Refundinq) I 1974 Sewer Shorewood Oaks Improvement REVENUE General property taxes Intergovernmental Property tax credits Miscellaneous Special assessments Interest on investments $ $ $ I 6 930 43 953 I TOTAL REVENUE SO 883 I EXPENDITURES Debt Service Principal Interest and service charges 85 000 48 786 I TOTAL EXPENDITURES 133 786 I EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Proceeds of bonds issued Operating transfers out (82 903) I TOTAL OTHER FINANCING SOURCES (USES) I EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 426 732 1 024 480 24 105 I (82 903) FUND EQUITY TRANSFER OUT (426 732) (24 105) I FUND EQUITY TRANSFER IN FUND BALANCE, DECEMBER 31 $ $ 941 577 $ I I I I I I -34- I I I Exhibit B-2 I 1991 1993 Improvement Shady Hills Improvement and Storm Sewer and Waterford III Total I Refundinq Improvement Refundinq Tax Increment 1994 1993 $ $ 8 249 $ $ 264 $ 8 513 $ 5 967 I 356 356 2 312 128 623 113 291 248 844 512 143 16 414 33 (5 767) 3 54 636 79 384 I 145 037 8 638 107 524 267 312 349 599 806 I 105 000 6 000 485 000 681 000 264 500 45 061 1 882 25 133 120 862 141 889 I 150 061 7 882 510 133 801 862 406 389 (5 024) 756 (402 609) 267 (489 513) 193 417 I 85 948 (22 910) I 63 038 I (5 024) 756 (402 609) 267 (489 513) 256 455 433 987 3 945 85 948 1 999 197 1 745 029 I 426 732 426 732 (450 837) (2 287) I $428 963 $ 4 701 $110 071 $ 267 $1 485 579 $1 999 197 I I I I I -35- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, 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 wa.s established for the purpose of funding the periodic reconstruction of City streets and roadways. Capital Improvements Fund - This fund was established to account for various capital improvement projects which may be financed without the need to issue bonds. Park Capital Improvement Fund - This fund accounts for park land acquisition and other capital improvements in the City parks. Waterfotd III Tax Increment Imprqvement Fund - This fund was established to account for proceeds of tax increment bonds sold for the construction of an intersection at State Trunk Highway 7 and OId Market Road and accompanying improvements Iwithin Tax Increment District No. 1. The residual fund. balance, which represented residual state aid funding, was transferred to the Capital Improvements Fund for use in future projects. Equipment Replacement Fund - This fun9 was established for the purpose of funding the replacement of capital equipment. Silverwood Park Improvement Fund - This fund was established to account for the construction improvements in SilveIWood Park. . MSi\. Construction Fund - This fund was established to account for the accumulation . of Municipal State Aid (MSA) to fund the periodic reconstruction ofMSA . designated roads. City Hall: farkin~ Lot Fund - This fund was established to account for the reconstruction of th,e City Hall Parking Lot. Seasons Improvements Fund., This fund was established! to account for the construction of street and utility improvements for th~ Seasons Elderly Housing Project. Manor\Park Warmin& House Fund -This fund was established to account for. the construction of a warming house in Manor Park. Trail Capital ImJ}rovemen~ Fund - This Jund was established to account for trail extensions and improvem,ents. Islalld Dry Hydrant Improvement Fund - This fund Was established to account for the construction of dry fire hydrants on Enchanted and Shady Islands. '/ ; ViQe Hill Improviement Fund- This fund was established to. account for the City's costs associated with the Minnesota Department of Transportation~s improvement of the inters~tion at Vine Hill Road and Highway 7. Old Market Roadl'railFund -This fund was created to acco!ltlt for the construction of a trail along Old Market Road. /. CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1994 (With comparative totals as of December 31, 1993) Park Street Capital Capital Reconstruction Improvements Improvement ASSETS Cash and investments Receivables Accounts Accrued interest Special assessments Delinquent Deferred Due from other funds $539 781 $ 81 011 $130 934 17 774 3 834 3 805 5 779 2 667 114 526 13 470 TOTAL ASSETS $672 081 $ 93 291 $148 209 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable Deferred revenue Due to other funds $ $ $ 6 676 TOTAL LIABILITIES 6 676 FUND BALANCE (DEFICIT) Unreserved Designated for capital projects Undesignated 672 081 86 615 147 898 TOTAL FUND BALANCE (DEFICIT) 672 081 86 615 147 898 TOTAL LIABILITIES AND FUND BALANCE $672 081 $ 93 291 $148 209 -36- I I Waterford III Tax Increment Improvement I $ I I I $ I 311 $ I 311 I I I $ I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 1994 (with comparative totals as of December 31, 1993) Exhibit C-1 Continued ASSETS Cash and investments Receivables Accounts Accrued interest Special assessments Delinquent Deferred Due from other funds Vine Hill Old Market Total Improvement Road Trail 1994 1993 $ $ $1 103 722 $1 117 387 28 100 35 162 12 277 5 779 8 852 2 667 140 259 59 $ $ $1 315 689 $1 138 575 TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable Deferred revenue Due to other funds $ 302 $ 3 376 $ 9 659 $ 274 976 6 676 8 583 20 010 12 263 140 259 59 20 312 15 639 156 594 283 618 TOTAL LIABILITIES FUND BALANCE (DEFICIT) Unreserved Designated for capital projects Undesignated 1 279 718 916 226 (20 312) (15 639) (120 623) (61 269) (20 312) (15 639) 1 159 095 854 957 $ $ $1 315 689 $1 138 575 TOTAL FUND BALANCE (DEFICIT) TOTAL LIABILITIES AND FUND BALANCE -38- CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1994 (With comparative totals for the year ended December 31, 1993) I I Park Street Capital Capital Reconstruction Improvements Improvement Waterford III Tax Increment Improvement I REVENUE Intergovernmental Miscellaneous Special assessments Interest on investments Other Park dedication fees Donations Other $ $ $ $ I 32 894 16 595 4 514 6 925 I 55 500 6 072 I 6 750 TOTAL REVENUE 32 894 27 859 68 497 EXPENDITURES Capital outlay Personal services Professional services Construction costs I 44 036 6 700 59 608 I TOTAL EXPENDITURES 44 036 66 308 EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in proceeds of bonds issued Operating transfers out (11 142) 27 859 2 189 I 230 000 35 000 187 000 (41 925) (195 000) (85 400) I TOTAL OTHER FINANCING SOURCES (USES) 188 075 (160 000) 101 600 I EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 176 933 (132 141) 103 789 I FUND BALANCE (DEFICIT), JANUARY 1 FUND EQUITY TRANSFER IN 495 148 113 641 44 109 81 010 105 115 I FUND EQUITY TRANSFER OUT (81 010) FUND BALANCE (DEFICIT), DECEMBER 31 $672 081 $ 86 615 $147 898 $ I I I I I -39- I I I I I I I I I I I I I I I I I I I I Exhibit C-2 Continued IN FUND BALANCE - CONTINUED CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES YEAR ENDED DECEMBER 31, 1994 {With comparative totals for the year ended December 31, 1993} Vine Hill Old Market Total Improvement Road Trail 1994 1993 REVENUE Intergovernmental $ $ 44 491 $ 114 168 $ 46 858 Miscellaneous Special assessments 16 595 9 711 Interest on investments 64 982 29 170 Other Park dedication fees 55 500 61 250 Donations 6 072 13 258 Other 7 050 1 399 TOTAL :REVENUE 44 491 264 367 161 646 EXPENDITURES Capital outlay Personal services 3 929 Professional services 6 069 9 605 64 651 96 489 Construction costs 38 243 50 525 547 854 498 612 TOTAL EXPENDITURES 44 312 60 130 616 434 595 101 EXCESS REVENUE {EXPENDITURES} {44 312} (15 639) (352 067) (433 455) OTHER FINANCING SOURCES {USES} Operating transfers in 24 000 954 425 468 119 Proceeds of bonds issued 236 750 Operating transfers out {322 325} (75 209) TOTAL OTHER FINANCING SOURCES (USES) 24 000 632 100 629 660 EXCESS REVENUE AND OTHER FINANCING SOURCES OVER {UNDER} EXPENDITURES AND OTHER USES (20 312) (15 639) 280 033 196 205 FUND BALANCE (DEFICIT) , JANUARY 1 854 957 656 465 FUND EQUITY TRANSFER IN 105 115 2 287 FUND EQUITY TRANSFER OUT {81 010} FUND BALANCE (DEFICIT) , DECEMBER 31 $(20 312) ${15 639} $1 159 095 $854 957 -41- I I I I I I I I I I I I , I I I I I I I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business, where the costs of providing services to the general public are financed primarily through user charges. , , " Water Fund - This fund is used to account for the activities of the City water srstem. Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system. Recycline Fund - This fun~ is used. to account for the activities of the City reCycling program. Stormwater Manaeement Utility Fund - This ~nd is used to accOUht for the activities of the City Sto~w"'ter Management system. Liquor Fund - This fund is used to account for the activities of the City's off-sale liquor operation. The operation consists of two off-sale liquor store sites. One of the sites closed in January, 1994. The City leased another location in a neighboring community and be~an operations in December, 1994. The residual retained/earnings from the closed store was transferred to the new store fund. A portion of the net income from the operation is uSyd to fund general fund activities. I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1994 (With comparative totals as of December 31, 1993) I Water Sewer I ASSETS CURRENT ASSETS Cash and investments Cash held in escrow Receivables Taxes Accounts Accrued interest Special assessments Delinquent Deferred Inventories, at cost Prepaid items TOTAL ASSETS $ 286 850 $ 688 299 564 39 059 187 042 7 582 20 507 12 081 8 067 30 134 3 163 4 393 345 285 942 456 3 070 174 7 382 448 (674 614) (3 748 195) 2 395 560 3 634 253 364 $2 741 209 $4 576 709 I I I TOTAL CURRENT ASSETS I PROPERTY AND EQUIPMENT, AT COST LESS ACCUMULATED DEPRECIATION TOTAL PROPERTY AND EQUIPMENT I OTHER ASSETS Bond discount, net of amortization I LIABILITIES AND FUND EQUITY LIABILITIES CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Current portion of long-term debt I TOTAL CURRENT LIABILITIES $ 5 717 $ 40 105 10 10 15 000 20 727 40 115 15 000 35 727 40 115 2 864 966 4 235 643 (159 484) 300 951 2 705 482 4 536 594 $2 741 209 $4 576 709 I LONG-TERM LIABILITIES Bonds payable less current portion above I TOTAL LIABILITIES I FUND EQUITY Contributed capital Retained earnings (deficit) - unreserved I TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY I I I I -42- I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1994 (With comparative totals for the year ended December 31, 1993) Water OPERATING REVENUE Sales Less cost of sales $ GROSS PROFIT Charges for services Permits and connection fees 184 204 78 688 GROSS PROFIT AND REVENUE 262 892 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 7 989 5 027 10 379 77 040 5 661 52 726 1 099 4 269 16 913 36 967 18 149 TOTAL OPERATING EXPENSES 236 219 OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSES) General property taxes Property tax credits Interest on investments Other income (expense) Interest expense 26 673 18 689 12 535 7 200 (4 035) TOTAL OTHER REVENUE (EXPENSES) INCOME (LOSS) BEFORE TRANSFERS 34 389 61 062 OPERATING TRANSFERS FROM OTHER FUNDS OPERATING TRANSFERS TO OTHER FUNDS (34 600) NET INCOME (LOSS) 26 462 RETAINED EARNINGS (DEFICIT), JANUARY 1 (185 946) FUND EQUITY TRANSFER IN FUND EQUITY TRANSFER OUT RETAINED EARNINGS (DEFICIT), DECEMBER 31 I I Sewer I $ I 668 530 75 824 I 744 354 10 413 1 234 9 595 183 500 23 709 56 220 202 4 899 I I I 4 152 730 268 I 17 304 I 1 041 496 (297 142) I 30 425 30 351 I 60 776 I (236 366) I ( 6 000) (242 366) I 543 317 I $(159 484) $ 300 951 I -44- I I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1994 (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 (loss) to net cash provided (used) 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 CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds Operating transfers from other funds CASH FLOWS PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 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 Fund equity transfer in Fund equity transfer out CASH FLOWS PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) 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 Disposal of property and equipment TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES -46- I I 31, 1993) Water Sewer $ 26 673 $(297 142) 7 200 30 351 77 040 183 500 (110) (4 492) (32 424) (3 457) (5 606) 1 933 (1 546) 124 (373) (1 066) 5 648 (115) (152) 103 730 (117 744) (34 600) (6 000) I I I I I I I (34 600) ( 6 000) (15 000) (4 035) (11 857) 18 689 I I (12 203) I 12 535 30 425 I 69 462 (93 319) 217 388 781 618 I $286 850 $ 688 299 I $108 356 $ 98 108 I $108 356 $ 98 108 I I I CITY OF SHOREWOOD, MINNESOTA WATER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1994 AND 1993 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 LIABILITIES 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 deficit TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY -48- Exhibit D-4 I I I I I I I I I I I I I I I I I I I 1994 1993 $ 286 850 $ 217 388 564 454 39 059 34 567 7 582 4 125 10 000 8 067 3 163 3 287 345 285 269 821 3 070 174 2 949 961 (674 614) (597 759) 2 395 560 2 352 202 364 549 $2 741 209 $2 622 572 $ 5 717 $ 6 783 10 125 15 000 15 000 20 727 21 908 15 000 30 000 35 727 51 908 2 864 966 2 756 610 (159 484) (185 946) 2 705 482 2 570 664 $2 741 209 $2 622 572 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-5 WATER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED DEFICIT YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 OPERATING REVENUE Charges for services $ 184 204 $ 154 262 Permits and connection fees 78 688 18 362 TOTAL OPERATING REVENUE 262 892 172 624 OPERATING EXPENSES Personal services 7 989 7 545 Supplies 5 027 5 515 Repairs and maintenance 10 379 15 929 Depreciation and amortization 77 040 74 504 Professional services 5 661 688 Contracted services 52 726 45 544 Communication 1 099 1 146 Insurance 4 269 4 940 Water purchases 16 913 10 807 Utilities 36 967 35 287 Other 18 149 12 089 TOTAL OPERATING EXPENSES 236 219 213 994 OPERATING INCOME (LOSS) 26 673 (41 370) OTHER REVENUE (EXPENSES) General property taxes 18 689 n 745 Property tax credits 3 172 Interest on investments 12 535 10 645 Other income 7 200 7 200 Interest expense (4 035) (4 860) TOTAL OTHER REVENUE (EXPENSES) 34 389 27 902 INCOME (LOSS) BEFORE TRANSFERS 61 062 (13 468) OPERATING TRANSFERS TO OTHER FUNDS (34 600) NET INCOME (LOSS) 26 462 (13 468) RETAINED DEFICIT, JANUARY 1 (185 946) (172 478) RETAINED DEFICIT, DECEMBER 31 $(159 484) $(185 946) -49- CITY OF SHOREWOOD, MINNESOTA WATER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1994 AND 1993 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Other income related to operations Adjustments to reconcile operating income (loss) 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 CASH FLOWS 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 USED BY 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 -50- I Exhibit D-6 I I I I I I I (15 000) (10 000) (4 035) (4 860) (11 857) (10 470) 18 689 14 917 (12 203) (10 413) 12 535 10 645 69 462 45 751 217 388 171 637 $286 850 $217 388 $108 356 $ I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1994 AND 1993 I I ASSETS CURRENT ASSETS Cash and investments Cash held in escrow Receivables Accounts Accrued interest Special assessments Delinquent Deferred Prepaid items I I I I I I TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT, AT COST LESS ACCUMULATED DEPRECIATION TOTAL PROPERTY AND EQUIPMENT TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable I I I I I I TOTAL CURRENT LIABILITIES FUND EQUITY Contributed capital Retained earnings - unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY I I I I -51- Exhibit D-7 1994 1993 $ 688 299 $ 590 606 191 012 187 042 154 618 20 507 14 901 12 081 9 417 30 134 31 252 4 393 4 020 942 456 995 82~ 7 382 448 7 284 340 (3 748 195) (3 564 695) 3 634 253 3 719 645 $4 576 709 $4 715 471 $ 40 105 $ 34 457 10 162 40 115 34 619 4 235 643 4 137 535 300 951 543 317 4 536 594 4 680 852 $4 576 709 $4 715 471 CITY OF SHOREWOOD, MINNESOTA Exhibit D-8 SEWER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 OPERATING REVENUE Charges for services $ 668 530 $577 897 Permits and connection fees 75 824 89 260 TOTAL OPERATING REVENUE 744 354 667 157 OPERATING EXPENSES Personal services 10 413 13 803 Supplies 1 234 2 676 Repairs and maintenance 9 595 6 565 Depreciation 183 500 180 592 Professional services 23 709 30 198 Contracted services 56 220 42 474 Communication 202 121 Insurance 4 899 5 106 Utilities 4 152 4 535 MWCC charges 730 268 376 959 Other 17 304 21 589 TOTAL OPERATING EXPENSES 1 041 496 684 618 OPERATING LOSS (297 142) (17 461) OTHER REVENUE (EXPENSES) Interest on investments 30 425 36 223 Other income 30 351 288 TOTAL OTHER REVENUE (EXPENSES) 60 776 36 511 INCOME (LOSS) BEFORE OPERATING TRANSFERS (236 366) 19 050 OPERATING TRANSFERS TO OTHER FUNDS (6 000) NET INCOME (LOSS) (242 366) 19 050 RETAINED EARNINGS, JANUARY 1 543 317 524 267 RETAINED EARNINGS, DECEMBER 31 $ 300 951 $543 317 -52- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1994 AND 1993 I I CASH FLOWS FROM OPERATING ACTIVITIES Operating loss Other income related to operations Adjustments to reconcile operating loss to net cash provided (used) 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 I I I I CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of property and equipment I CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS 1 JANUARY 1 I CASH AND CASH EQUIVALENTS 1 DECEMBER 31 I NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds I I I I I I -53- I Exhibit D-9 (83 135) 30 425 36 223 (93 319) 120 141 781 618 661 477 $ 688 299 $781 618 $ 98 108 $ 33 750 CITY OF SHOREWOOD, MINNESOTA RECYCLING FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1994 AND 1993 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 -54- I Exhibit D-10 I 1994 1993 $ 30 813 $ 32 154 16 338 16 100 945 343 201 110 518 538 $ 48 815 $ 49 245 I I I I $ 4 370 $ 3 968 I 44 445 45 277 I $ 48 815 $ 49 245 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-11 RECYCLING FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 OPERATING REVENUE Charges for services $ 67 605 $ 79 023 OPERATING EXPENSES Personal services 673 1 482 Supplies 369 Contracted services 68 002 64 485 Other 1 160 1 754 TOTAL OPERATING EXPENSES 70 204 67 721 OPERATING INCOME (LOSS) (2 599) 11 302 OTHER REVENUE (EXPENSES) Interest on investments 1 767 1 163 INCOME (LOSS) BEFORE TRANSFERS (832) 12 465 OPERATING TRANSFERS FROM OTHER FUNDS 10 000 NET INCOME (LOSS) (832) 22 465 RETAINED EARNINGS, JANUARY 1 45 277 22 812 RETAINED EARNINGS, DECEMBER 31 $ 44 445 $ 45 277 -55- CITY OF SHOREWOOD, MINNESOTA Exhibit D-12 RECYCLING FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash used by operating activities: (Increase) decrease in assets - Accounts Accrued interest Special assessments Increase (decrease) in liabilities - Accounts payable $ (2 599) $ 11 302 (238) (15 960) (602) (343) (71) (232) 402 291 (3 108) (4 942) 10 000 1 767 1 163 (1 341) 6 221 32 154 25 933 $ 30 813 $ 32 154 CASH FLOWS USED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 -56- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 0-13 STORMWATER MANAGEMENT UTILITY FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1994 AND 1993 1994 1993 ASSETS CURRENT ASSETS Cash and investments $ 57 194 $ 24 911 Receivables Accounts 13 326 12 203 Accrued interest 1 567 229 Special assessments Delinquent 122 Deferred 1 069 609 TOTAL ASSETS $ 73 278 $ 37 952 LIABILITIES AND RETAINED EARNINGS LIABILITIES Salaries payable $ $ 63 RETAINED EARNINGS Unreserved 73 278 37 889 TOTAL LIABILITIES AND RETAINED EARNINGS $ 73 278 $ 37 952 -57- CITY OF SHOREWOOD, MINNESOTA Exhibit D-14 STORMWATER MANAGEMENT UTILITY FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 OPERATING REVENUE Charges for services $ 44 065 $ 41 217 OPERATING EXPENSES Personal services Professional services Contracted services 1 622 2 819 17 347 3 906 TOTAL OPERATING EXPENSES 21 788 3 906 OPERATING INCOME 22 277 37 311 OTHER REVENUE Interest on investments 3 112 578 ~NCOME BEFORE OPERATING TRANSFERS OPERATING TRANSFERS FROM OTHER FUNDS 25 389 37 8S9 10 000 NET INCOME 35 389 37 889 RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 37 889 $ 73 278 $ 37 889 -58- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA STORMWATER MANAGEMENT UTILITY FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1994 AND 1993 I I 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 - Salaries payable I I I CASH FLOWS PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds I CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments I INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 I CASH AND CASH EQUIVALENTS, DECEMBER 31 I I I I I I I I I I -59- 1994 $ 22 277 (1 123) (1 338) (582) (63) 19 171 10 000 3 112 32 283 24 911 $ 57 194 Exhibit D-15 1993 $ 37 311 (12 203) (229) (609) 63 24 333 578 24 911 $ 24 911 CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1994 AND 1993 ASSETS CURRENT ASSETS Cash and investments Receivables Accrued interest Inventories, at cost Prepaid items TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT, AT COST LESS ACCUMULATED DEPRECIATION TOTAL PROPERTY AND EQUIPMENT TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable TOTAL CURRENT LIABILITIES RETAINED EARNINGS Unreserved TOTAL LIABILITIES AND RETAINED EARNINGS Tonka Bay 1994 1993 $229 885 $ 6 825 47 063 283 773 $283 773 $ $ 48 346 $ 1 024 49 370 234 403 $283 773 $ -60- Exhibit D-16 I I I Store I 1994 1993 $ $199 788 I I I I I I I I I I I I I I I I 3 756 35 780 2 612 241 936 24 917 (24 917) $ $241 936 $ $ 35 145 954 36 099 205 837 $ $241 936 I I I Store II 1994 1993 I $105 202 $143 691 3 662 2 915 106 352 113 116 I 5 878 7 302 221 094 267 024 I 21 288 9 161 (10 269) (8 913) 11 019 248 I $232 113 $267 272 I $ 31 537 $ 42 231 I 1 799 1 721 33 336 43 952 I 198 777 223 320 I $232 113 $267 272 I I I I I I I I -61- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN YEARS ENDED DECEMBER 31, 1994 AND 1993 Tonka Bav 1994 1993 OPERATING REVENUE Sales Less cost of sales $ 25 073 19 187 $ GROSS PROFIT 5 886 OPERATING EXPENSES Personal services Supplies Depreciation Professional services Contracted services Insurance Utilities Rent Advertising Other 2 865 655 567 TOTAL OPERATING EXPENSES 4 087 OPERATING INCOME (LOSS) 1 799 OTHER REVENUE (EXPENSES) Interest on investments Other income (expense) TOTAL OTHER REVENUE (EXPENSES) INCOME (LOSS) BEFORE TRANSFERS 1 799 OPERATING TRANSFERS TO OTHER FUNDS NET INCOME (LOSS) 1 799 RETAINED EARNINGS, JANUARY 1 FUND EQUITY TRANSFER IN 232 604 FUND EQUITY TRANSFER OUT RETAINED EARNINGS, DECEMBER 31 $234 403 $ -62- RETAINED EARNINGS Exhibit D-17 I I I I I I I I I Store I 1994 1993 $ 23 945 21 901 2 044 3 342 10 4 810 1 148 931 273 263 250 11 027 (8 983) 11 330 40 420 51 750 $583 125 460 246 122 879 60 243 1 078 1 722 1 336 3 913 5 674 20 302 2 094 2 606 98 968 23 911 8 772 (1 119) 7 653 I 42 767 31 564 I I I I I I I I I (16 000) (16 000) 26 767 15 564 205 837 190 273 (232 604) $ $205 837 I I I Store II 1994 1993 $724 114 $753 648 I 574 552 611 583 149 562 142 065 I 94 954 81 056 3 738 3 490 1 356 646 I 1 416 1 032 415 294 5 960 5 832 8 870 8 574 I 29 629 29 134 6 331 2 139 3 236 2 188 I 155 907 134 385 (6 345) 7 680 I 5 382 6 627 420 (763) I 5 802 5 864 I (543) 13 544 (24 000) (24 000) I (24 543) (10 456) 223 320 233 776 I I $198 777 $223 320 I I I I I -63- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1994 AND 1993 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Other income (expense) related to operations Adjustments to reconcile operating income (loss) to net cash provided (used) 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 CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Fund equity transfer in Fund equity transfer out Acquisition of property and equipment CASH FLOWS PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Disposal of property and equipment Tonka Bav 1994 1993 $ 1 799 $ (6 825) (47 063) 48 346 1 024 (2 719) 232 604 232 604 229 885 $229 885 $ $ $ -64- Exhibit D-18 I I Store I 1994 1993 I $ (8 983) 40 420 3 756 35 780 2 612 (35 145) (954) 37 486 (16 000) (232 604) (232 604) 11 330 (199 788) 199 788 $ $(24 917) $ $ 23 911 (1 119) I I 104 (656) 10 300 778 I 6 695 I 154 40 167 I (16 000) I I I 8 772 I 32 939 I 166 849 $199 788 I I I I I I I I I Store II 1994 1993 $ (6 345) $ 7680 I 420 (763) I 1 356 646 155 I (747) (267) 6 764 8 772 1 424 (2 450) I (10 694) 8 680 78 545 I (7 744) 22 998 I (24 000) (24 000) I (12 127) I (12 127) I 5 382 6 627 I (38 489) 5 625 143 691 138 066 I $105 202 $143 691 I I $ $ I I I -65- I I I I I II I I I I ~ 1 / I I I I I I I I I 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 PCiyroll deferments and the related liability, that are deposited with outside companies in aceordance with the provisions of Internal Revenue Code Section 457. I I CITY OF SHOREWOOD, MINNESOTA DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED DECEMBER 31, 1994 I I ASSETS Investments for deferred compensation plan, at market I LIABILITIES Deferred compensation funds held for participants I I I I I I I I I I I I I I Balance January 1 $111 681 $111 681 -66- Additions $ 17 298 $ 17 298 Deductions $ $ Exhibit E-1 Balance December 31 $128 979 $128 979 I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those fixed assets of a governmental' jurisdiction which are not accounted for in an enterprise fund. To be classified as a ~xed asset in this category, a specific piece of property must meet three attributes: . 1. Tangible nature 2. A life longer than the current fiscal year 3. A significant value I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit F-1 GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE DECEMBER 31, 1994 AND 1993 1994 1993 GENERAL FIXED ASSETS Land $ 456 826 $ 456 826 Buildings and structures 1 327 073 1 327 073 Improvements other than buildings 1 158 271 773 667 Furniture and equipment 952 465 897 275 TOTAL GENERAL FIXED ASSETS $3 894 635 $3 454 841 INVESTMENT IN GENERAL FIXED ASSETS General fund $ 952 465 $ 897 275 Capital projects funds 2 942 170 2 557 566 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $3 894 635 $3 454 841 -67- I CITY OF SHOREWOOD, MINNESOTA Exhibit F-2 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY DECEMBER 31, 1994 I Buildings Improvements Furniture and Other Than and Total Land Structures Buildinqs Equipment FUNCTION General government $ 662 200 $ $ 305 372 $ 147 233 $209 595 Public works 2 000 653 153 500 919 581 184 702 742 870 Parks 1 231 782 303 326 102 120 826 336 TOTAL GENERAL FIXED ASSETS $3 894 635 $456 826 $1 327 073 $1 158 271 $952 465 I I I I I I I I I I I I I I I I -68- I I 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, 1994 I I General Fixed Assets January 1 Additions Deductions General Fixed Assets December 31 I General government $ 505 255 $181 894 $ 24 949 $ 662 200 Public works 1 915 284 104 498 19 129 2 000 653 Parks I 1 034 302 197 480 1 231 782 TOTAL GENERAL FIXED ASSETS $3 454 841 $483 872 $ 44 078 $3 894 635 I I I I I I I I I I I I I -69- I I I I I I I I I I I I I I I I I I I I . CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM\ DEBT ACCOUNT GROUP General obligation bonds and other forms of long-term debt supported by general revenu,es are obligations of a governmental unit as a whole and not its jndividual 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) isrec<lrded and accounted for in a separate s(flf-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. I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT DECEMBER 31, 1994 AND 1993 Exhibit G-l I I 1994 1993 AMOUNT AVAILABLE FOR DEBT SERVICE Debt service funds $1 485 579 $1 999 197 I AMOUNTS TO BE PROVIDED Future tax levies, assessments and tax increments 1 275 755 1 444 307 I TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED $2 761 334 $3 443 504 I GENERAL LONG-TERM DEBT PAYABLE Compensated absences payable $ 20 834 $ 22 004 General obligation special assessment bonds 1 820 500 2 501 500 Tax increment revenue bonds 920 000 920 000 TOTAL GENERAL LONG-TERM DEBT PAYABLE $2 761 334 $3 443 504 I I I I I I I I I I I I -70- I CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31, 1994 Interest Rates SPECIAL ASSESSMENT BONDS G.O Improvement ,refunding bonds of 1987 G.O Improvement bonds of 1989 G.O Improvement bonds of 1991 G.O Improvement bonds of 1991 G.O Improvement bonds of 1993 5.60% 6.20-6.50 4.90-5.85 8.00 2.90-4.45 TOTAL TAX INCREMENT REVENUE BONDS Tax increment revenue bonds of 1991 9.00 REVENUE BONDS G.O. Water Revenue bonds 8.50 TOTAL -71- Issue Date 4/1/87 10/1/89 11/1/91 9/1/91 12/1/93 5/1/91 9/1/80 I I Final Maturity Date I 2/1/01 2/1/03 2/1/02 2/1/97 2/1/04 I I 2/1/00 I 9/1/96 I I I I I I I I I I I I I I I Exhibit H-1 Bonds I Authorized 12/31/94 and Issued Redeemed Outstandinq $ 875 000 $ 485 000 $ I 1 095 000 85 000 700 000 960 000 105 000 775 000 31 000 6 000 20 500 325 000 325 000 I 3 286 000 681 000 1 820 500 I 920 000 920 000 I 140 000 15 000 30 000 $4 346 000 $ 696 000 $2 770 500 I I I I I I I I I I I I -72- I CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 1994 I Total G.O. Bonds Year Principal Interest 1995 $ 399 333 $ 547 709 1996 395 333 147 088 1997 375 834 119 812 1998 368 333 94 066 1999 368 333 68 300 2000 358 334 42 493 2001 200 000 23 964 2002 190 000 12 451 2003 95 000 3 868 2004 20 000 480 Total $2 770 500 $1 060 231 I I I I I I I I I I I I I * Tax increment collections will be remitted to the bond holders and payments will be applied first to accrued interest. I I I -73- I Tax Increment Revenue Bonds* Principal Interest $153 333 153 333 153 334 153 333 153 333 153 334 $449 682 62 308 48 357 34 556 20 757 6 843 $920 000 $622 503 -74- Exhibit I-1 G.O. Water Revenue Bonds Principal Interest $ 15 000 15 000 $ 2 550 1 275 $ 30 000 $ 3 825 I I I I I I I I I I I I I I I) I ~ I I I I CITY OF SHOREWOOD, MINNESOTA SECTION III STATISTICAL SECTION I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION LAST TEN FISCAL YEARS Table 1 I Fiscal Total General Public Public Parks and Misc/ Year Expenditures Government Safety Works Recreation Transfers 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 1993 2 184 260 668 410 580 153 436 224 119 473 380 000 1994 2 536 943 755 097 618 047 433 699 128 600 601 500 I I I I I I I I I I I I I I I -75- I CITY OF SHOREWOOD, MINNESOTA GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE LAST TEN FISCAL YEARS Table 2 Total General Licenses Fiscal General Fund Property and Inter- Year Revenues Taxes Permits Governmental Fines Miscellaneous 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 1993 2 429 910 1 515 633 247 557 426 102 70 135 170 483 1994 2 531 339 1 487 398 256 243 441 040 73 998 272 660 I I I I I I I I I I I I I I I I -76- I I I I 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 Le'vv Levv Collected Levv Collections to Levv 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 1993 1 932 454 1 908 428 98.76 51 464 1 959 892 101.42 1994 1 518 735 1 505 212 99.11 13 886 1 519 098 100.02 I I I I I * Includes state paid property tax credits Includes $66,971 state aid reduction from the Homestead and Agricultural Credit Aid. I (1) I I I I I I I I Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. I I I -77- CITY OF SHOREWOOD, MINNESOTA ASSESSED VALUATION, TAX LEVIES AND MILL RATES (shown by year of tax collectibility) Assessed valuation! Tax capacity Contribution to fiscal disparities pool Receivable from fiscal disparities pool Tax increment 1994 1993 1992 1991 (1) & (2 ) (1) & (2 ) (1) & (2) (1) $7 396 104 $7 092 917 $7 681 118 $7 909 001 (205 973) (227 686) (212 697) (227 257) 375 309 396 081 390 694 388 595 (317) $7 565 123 $7 261 312 $7 859 115 $8 070 339 (3) $1 491 888 $1 909 253 $1 840 663 $1 840 663 26 847 23 201 23 914 16 325 $1 518 735 $1 932 454 $1 864 577 $1 856 988 Taxable valuation! Total tax capacity Tax levies General Debt service Total Mill rates!Tax Capacity Rate General Debt service 19.655 Rate 20.638 Rate 19.995 Rate 20.274 Rate .249 .159 .169 .180 Total 19.904 Rate 20.797 Rate 20.164 Rate 20.454 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. 1985-1988 information is stated in terms of assessed valuation and mill rates. 1989-1994 information is stated in terms of tax capacity and tax capacity rates. (2) The debt service levy includes $8,022 and $8,526 for 1994 and 1993, respectively 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. (3) Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. -78- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Table 4 1990 1989 1988 1987 1986 1985 $7 033 863 $7 705 314 $55 691 698 $52 274 820 $50 700 422 $50 464 722 (209 164) (218 604) (1 699 452) (1 457 783) (1 420 050) (1 355 365) 372 707 347 288 2 597 611 2 242 637 1 934 251 1 918 366 $7 197 406 $7 833 998 $56 589 857 $53 059 674 $51 214 623 $51 027 723 $1 667 451 $1 282 956 $ 1 274 189 $ 1 172 220 $ 1 126 436 $ 1 068 803 17 125 17 925 19 500 82 200 82 825 102 825 $1 684 576 $1 300 881 $ 1 293 689 $ 1 254 420 $ 1 209 261 $ 1 171 628 20.093 Rate 16.282 Rate 22.481 Mills 22.093 Mills 22.020 Mills 20.903 Mills .206 .227 .344 1.550 1.620 2.011 20.299 Rate 16.509 Rate 22.825 Mills 23.643 Mills 23.640 Mills 22.914 Mills -79- I CITY OF SHOREWOOD, MINNESOTA PROPERTY TAX MILL RATES/TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1000 OF ASSESSED VALUE FOR YEARS 1985-1988 AND TAX CAPACITY IN 1989 - 1994) I I (1) (1) Year School School Watershed Watershed Taxes District District District District Payable City County No. 276 No. 277 No. 3 No. 4 Misc. 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 1993 20.797 (2 ) 35.839 75.275 60.069 .668 .781 5.532 1994 19.904 (2) 37.441 77.323 67.785 .334 .707 5.724 I I I I (1) Includes vocational school (2) Information for 1989-1994 is stated in terms of tax capacity rates due to I 1988 legislative changes as explained in Table 4. I I I I I I I I I I -80- I I I 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. 3 114.045 114.383 114.383 107.867 119.004 119.113 119.113 117.853 121. 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 13.437 138.111 138.224 151.661 122.905 15.495 140.726 141.099 156.594 131.188 I I I I I I I I I I I I I I I I I -81- I CITY OF SHOREWOOD, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1994 Table 6 I Taxpayer Percentage 1994 Tax of Total Type of Business Capacity Tax Capacity Utility $116 040 1. 53% Shopping Center 75 118 .99 Country Club 74 313 .98 Utility 58 816 .78 Commercial 43 263 .57 Yacht Club 29 836 .39 Residential 27 366 .36 Residential 22 764 .30 Commercial 22 380 .30 Residential 20 240 ~ $490 136 6.47% = I Northern States Power Company Ryan Construction Company Minnetonka Country Club Minnegasco Two S Properties Shorewood Yacht Club Individual Individual Fina Serve, Inc. Individual I I Total I I I I I I I I I I I I I -82- I I I I 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 Levv Levv Collected Levv Collections To Levv 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 1993 231 800 222 842 96.14 47 372 270 214 116.57 1994 198 729 185 061 93.12 6 025 191 086 96.15 I I I I I I I I I I I I I I I I -83- Market Value CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 1994 Table 8 I I $425 119 000 I Debt Limit: 2.0% of market value (Note A) $ 8 502 380 Amount of Debt Applicable to Debt Limit: I Total Bonded Debt $ 2 770 500 Less: (Note B) Special Assessment Bonds (I 800 000) General Obligation Water Revenue Bonds (30 000) General Obligation Storm Sewer Bonds (20 500) Tax Increment Revenue Bonds (920 000) I Total Debt Applicable to Debt Limit I $ 8 502 380 Note (A): Legal Debt Margin M.S.A. Section 475.53 (Limit on Net Debt) I "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 I the municipality." Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid) "Subdivision 2. Not included in net debt of municipality for purpose of any statutory or I 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 I indebtedness." M.S.A. Section 475.51 (Definitions:) "Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross I debt the aggregate of the principal of the following: (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. I I (2) (3) (4 ) (5) Warrants or orders having no definite or fixed maturity. Obligations payable wholly from the income from revenue-producing conveniences. Obligations issued to create or maintain a permanent improvement revolving fund. II Obligations issued for the acquisition and betterment of public water works II 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. Amount of all money and the face value of all securities held as a sinking fund I for the extinguishment of obligations other than those deductible under this subdivision. (7) All other obligations, which under the provisions of the law authorizing their I issuance, are not to be included in computing the net debt of the municipality." (6) * After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24. I -84- I I I CITY OF SHOREWOOD, MINNESOTA Table 9 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Ratio of Net Net (1) Bonded Debt Bonded Assessed (2) Less Amount to Assessed Debt Fiscal Estimated Value/Tax Gross Reserved for Net Values/ per Year Population Capacity Bonded Debt Debt Service Bonded Debt Tax Capacity Capita 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 I I I I 1989 5815 7 833 998 2 990 000 1 510 303 1 479 697 .1889:1 254.46 1990 5917 7 197 406 2 720 000 1 902 837 817 163 .1135:1 138.10 1991 6000 8 070 339 3 411 000 2 311 859 1 099 141 .1362:1 183.19 1992 6135 7 859 115 2 496 000 1 742 742 753 258 .0958:1 122.78 1993 6322 7 261 312 2 546 500 1 999 197 547 303 .0754:1 86.57 1994 6430 7 565 123 1 850 500 1 485 579 364 921 .0482:1 56.75 I I I (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. 1985-1988 information is stated in terms of assessed valuation and mill rates. 1989-1994 information is stated in terms of tax capacity and tax capacity rates. 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 not included in the gross bonded debt as they are not backed by the full faith and credit of the City. I I (2) I I I I I I I I -85- 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 1985 $ 610 000 $282 298 $ 892 298 $1 266 606 70.44% 1986 590 000 268 077 858 077 1 400 755 61. 26 1987 (2) 1 840 000 273 709 2 113 709 1 651 927 127.95 1988 435 000 274 636 709 636 1 898 594 37.38 1989 (3) 2 625 000 253 115 2 878 115 1 794 684 160.37 1990 260 000 175 098 435 098 2 065 011 21. 07 1991 290 000 173 495 463 495 2 241 781 20.68 1992 905 000 167 163 1 072 163 2 301 950 46.58 1993 264 500 141 889 406 389 2 184 260 18.61 1994 (4) 681 000 120 862 801 862 2 536 943 31. 61 I I I I I I I (1) Excludes G.O. Bonds reported in Enterprise Funds (2) Principal includes bonds refunded in 1987 (3) Principal included bonds defeased in 1989 I (4) Principal includes bonds called in 1994 I * Includes General Fund only I I I I I I I I I -86- I 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. Tax increment revenue bonds supported only by the tax increments generated within the TIF District are excluded from this computation consistent with Table 9. I I I Direct Debt* City of Shorewood I Overlapping Debt Hennepin County Hennepin Suburban Park District School District #276 School District #277 Vo-Tech District #287 Metropolitan Council Metropolitan Transit Commission I I I Total Over- lapping Debt I Total Direct and Overlapping Debt I * I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 1994 Table 11 City of Percent of Shorewood Net Debt Debt Applicable Share Total Debt Outstandinq to City of Debt $ 1 850 500 $ 364 921 100.00% $ 364 921 196 825 000 62 214 511 .90 559 931 19 130 000 15 415 684 1.25 192 696 19 755 000 19 153 298 18.95 3 629 550 14 700 000 13 946 122 2.00 278 922 1.20 379 505 000 46 221 284 .43 198 752 1 400 000 807 000 .47 3 793 631 315 000 157 757 899 3.08 4 863 644 $633 165 500 $158 122 820 $5 228 565 3.31% -87- I 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 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 1993 172 624 139 490 33 134 10 000 4 860 14 860 2.230 to 1 1994 262 892 159 179 103 713 15 000 4 035 19 035 5.449 to 1 I I I I I I (1) Excluding depreciation and interest on bonds I I I I I I I I I I I -88- I I CITY OF SHOREWOOD, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS I 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 (1) (1) Commercial Residential Construction Construction Number of Value Units Value $ 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 10 899 687 102 17 941 776 960 000 86 16 530 925 I Fiscal Year I I I Sources I (1) City Planning and Inspection Department (2) County Assessor's Office I Bank deposits are not shown as no banks are located within the City limits. I I I I I I I I I I -89- I I I I I I I I I I I I I I I I I I I I Table 13 (2 ) Property Value Commercial Residential Total $ 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 11 307 900 391 057 000 402 364 900 11 338 700 413 780 300 425 119 000 -90- r I CITY OF SHOREWOOD, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31, 1994 I Year of incorporation I Form of government Fiscal year begins I Area of city I Population 1994 Estimated 1990 Census 1980 Census 1970 Census I Miles of streets and alleys City streets Municipal state aid streets County roads State highway I I Sewer Lift stations Sewer rates - residential Miles of sewer lines I Number of street lights Building permits issued in 1994 Number of permits Value I Fire protection Contracted services with Mound and Excelsior I Police protection Contracted services with South Lake Minnetonka Police Department I Parks Number Acres I Water Number of connections Average daily consumption Miles of watermain Daily capacity Number of fire hydrants Water rate per thousand gallons I I Employees Regular Part-time/seasonal Total I Elections Registered voters last election Number of votes cast last election Percentage of registered voters voting I I I -91- Table 14 1956 Council-Administrator Adopted May 14, 1956 January 1 6.0 Square Miles 6,430 5,917 4,646 4,223 37.9 9.3 1.7 2.7 18 $65.00/quarter 55.7 174 709 $22,810,079 5 95.8 898 267,800 gallons 14.7 4,680,000 gallons 165 $1.45/1000 gallons 20 15 35 = 4,942 3,260 66.0%