1995 - Comp. Annual Financial Report
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CITY OF SHQREWOOD, MINNESOTA
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COMPREHENSIVE
. '
I ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMB~R 31, 1995
JAtvlES C. HURt\'l, CITY ADMINISTRATOR
REPORT"PREPARED BY: DEPARTMENT OF FINANCE
ALAN J.ROLEK, :FINANCE, DI~ECTORlT~EASURER
'MEMBER OF! GOVERNMENT FINANCE OFFICERS AS'SOCIATION
OF THE UNITED STATES AND CANADA
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1995
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I. INTRODUCTORY SECTION
Elected and Appointed Officials
Organizational Chart
Letter of Transmittal
Certificate of Achievement for Excellence in Financial
Reporting
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II . FINANCIAL SECTION
Independent Auditor's Report
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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
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Combininq and Individual Fund and Account Group Financial
Statements and Schedules
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General Fund
Comparative Balance Sheets
Statement of Revenue, Expenditures and Changes
in Fund Balance - Budget and Actual
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Debt Service Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures
and Changes in Fund Balance
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Capital Projects Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures
and Changes in Fund Balance
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Enterprise Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenses and
Changes in Retained Earnings
Combining Statement of Cash Flows
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Water Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and
Changes in Retained Earnings
Comparative Statements of Cash Flows
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Sewer Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and
Changes in Retained Earnings
Comparative Statements of Cash Flows
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Exhibit
1
2
3
4
5
A-I
A-2
B-1
B-2
C-l
C-2
D-l
D-2
D-3
D-4
D-5
D-6
D-7
D-8
D-9
Paqe No.
I - X
2 - 3
4 - 5
6
7
8
9 - 27
28
29 - 32
33 - 34
35 - 36
37 - 40
41 - 44
45 - 46
47 - 48
49 - 50
51
52
53
54
55
56
CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1995
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
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Exhibit Paqe No.
D-I0 57
D-ll 58
D-12 59
D-13 60
D-14 61
D-15 62
D-16 63 - 64
D-17 65 - 66
D-18 67 - 68
E-l 69
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F-l
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70
F-2
71
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F-3
72
G-l
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H-l
74 - 75
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76 - 77
1
2
3
4
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78
79
80
81 - 82
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6
7
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83 - 84
85
86
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88
10
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14
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89
90
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92 - 93
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CITY OF SHO~WOOD, MINNESOTA'
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SECTION I
INTRODUCTORY SECTION
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Elected Officials
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Robert Bean
Bruce Benson
Kristi Stover
Jennifer McCarty
Douglas Melam
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Appointed Officials
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James C. Hurm
Alan J. Rolek
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CITY OF SHOREWOOD, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 1995
Term
Expires
Mayor
Council Member
Council Member
Council Member
Council Member
1996
1996
1996
1998
1998
City Administrator
Finance Director/Treasurer
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ORGANIZATIONAL CHART - CITY OF SHOREWOOD
I CITY ATfORNEY ~ ~ - -- CITY COUNCIL BOARDS &
COMMISSIONS
"- - PLANNING COMMISSION
CITY ADMINISTRATOR 1 - PARK COMMISSION
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LIQUOR ENGINEERING FINANCE ADMINISTRATION PLANNING PUBLIC PUBLIC SAFETY
& 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 Information - Inspection - Equipment Maintenance - Investigation
- Accts. Recble. - Recreation Programs - Stormwater System - Public Service
- Special - Park Planning - Street Lighting - Fire - Excelsior/
Assessments (Contract) - SanitationlWeeds Mound
- Budgeting - Assessor (Contract) - Janitor Services - Fire prevention!
-MIS - Cable TV - (Contract) firefighting
- Purchasing Franchise - Utility Maintenance - Animal Control -
(Contract) Chanhassen
I VOTERS I
* Mayor is City's representative on joint governing board.
December, 1995
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CITY OF
SHOREWOOD
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5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (612) 474-3236
May 21, 1996
Hqnorable Mayor and Members of the. City Council
City of Shorewood, Minnesota
Councilmembers:
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The ,Comprehensive Annual Financial Report of the Cit.y of
Shorewood, Minnesota for the fiscal year endedpecember/ 31, 1995,
is hereby/ submitted. Responsibility for both .the accuracy of the
data, and the completeneSs and fairness of the presentation,
including all disclosures, rests w~th the City. To the best of
our. knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designated; to
present fairly the finan9ial position and results of operation;s 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 financial activities have been included.
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The Comprehensive Annual Financial Report is presented in three
sections: Introductory, Financial and StatisticaL The
Introductory section includes this transmittal lette~, the City's
qrganizational chart and a list of City officials. Thei Financial
section' includes the general purpose financ.ial stat.ements and ...... the
combining and individual fund. and account grqup financial
statements and schedules, along with the auditor's report on the
financial statements. The Statistical section includes Selected
financial and demographic information, generally presented on a
multi-year basis.
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The organiza~ion, form and contents of ,this ". report o/ere;prepared
in accordance with the standards prescribed. by tl'!-e Gove,rnmental
Aqcounting Standards Board, the Government Finance Officer's
Association of the United States and Canada, the American
Institute of Certified Public Accountants, and the Minnesota State
Auditor's Office. .
Tpis report includes all funds andacco.u:nt q-rOups of the City.
/The various fund types included are governmental, proprietary and
fiduciary. Within the ac~ount groups are general fixed assets and
general long-term debti.\ The City provides its residenti3 and
businesses with .a full range of municipal services consisting 9f
police, fire, public works, parks and general administrative
services. The City. also Operates five enterprises: a water
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A ResIdential Community on Lake Minnetonka's South Shore
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utility, sewer utility, recycling utility,
utili ty and an Qff:-salEil ;:Liquor o};>eration,
store sites.
stonnwa termanagemen t
consisting of three
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The~ criteria used in determining the component units to be
included. with the City as part of its reporting entity is
consistent ~itQ' those required by the Gov~rnmental Accounting
Standards BOard Statement No. 14, "The Fi,nancial Reporting
Entity". Based on thepe cri,teria, 9-11 funds and accoUnt groups of
the City are includeq. in this report, and no component units are
r$ported herein.
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ECONOMIC CONDl!TION AND OUTLOOK
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~he City of Shorewood is a suburb\of the City of Minneapolis and
is located 25 miles southwest of the central business district on
the southern shore of Lake Minnetonkp.. 'rhe City is predominantly
a residential community with limited commercial businesses and two
commercial shopping malls. The City is 6 square miles in a,rea and
has an estimated popu;:Lation of 6,61(4.
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, put because of the limited
availability of large tracts of land, . this will come at a reduced
rate and likely will be smaller developments than in the past.
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MAJOR INITIATIVES
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FINANCIAL AND MANAGEMENT EMPHASIS
Emphasis on Governance
The City Council ih its lead€!:J:7ship role is effectively
establishing a focus for city government in Shorewood. Each
Council member has signed "Council Commitments" which establishe,s
a framework from within the City council works. The Council has
adopted a strong set of values by which decisions are to be made.
It has adopted a Statement of Purpose and established overall
goals and expectations for the City. It has identified issues
facing i the City and prioriti~ed t;.heI1l so that the staff can
efficiently and effectively allocate time and resOurces.
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The City Council has adopted an open governm~nt policy and is
implementing it by televising City Council meetings, by improving
quarterly citi~en newsletters and by directing City staff to
improve communication to those residents affected by proj ects and
special assessments. A series of neighborhood meetings on the
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Emphasis on System Improvements
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five-year Capital Improvement Program gives citizens an
opportunity for one on one discussions with policy makers and for
meaningful input on plans for the next five years.
The City Council recognizes that its work consists of more than
responding to citizen requests and adopting an annual budget. The
City Council's calendar consists of three phases. The first
phase 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.
Capital Improvement Program is reviewed
priorities established in phase one.
Comprehensive Plan are made based upon the
Each year the five-year
and updated based upon
Any changes to the
phase one decisions.
The third phase is Budgeting. The operating budget is
established based on decisions made in the first two phases. A
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 Comprehensive Plan was updated and
implementation of items in that plan is beginning.
The Stormwater Management Utility is a funding mechanism for small
drainage improvement projects and for the City's share of major
drainage projects. A number of small projects were undertaken in
1995. The fund had retained earnings of $101,250 at the end of
1995, which is designated for future drainage projects.
The City continued it's park and trail improvement program in
1995. The City made improvements to several parks during the
year. Playground equipment and a parking lot was installed, and a
ballfield relocated in Cathcart Park. A parking lot was built in
Manor Park. picnic table pads and a volleyball area was built in
Freeman Park.
In 1995, the first year of a 20 year water system expansion
program was undertaken. Three small watermain installation
projects were initiated, and plans for a new water tower on the
Minnewashta Elementary School property were solidified. The bids
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The City
Innovation
neighboring
Hall/Badger
for 1996.
received a $25,000 grant
and Cooperation towards
cities to build a Senior
Park site. Construction
from the State Board on
continued negotiations with
Community Center at the City
on the Center is anticipated
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for the tower will be let in Spring, 1996, with construction
taking place throughout the summer of 1996.
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Emphasis on Efficiently, Effectively Meeting Service Needs
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As one of fourteen Lake Minnetonka Area municipalities, the City
of Shorewood is invol ved 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.
Two examples of efforts in 1995 are continued negotiations with
neighboring cities to build a Southshore Senior Community Center,
and beginning negotiations with the City of Victoria to share one
water tower in west Shorewood. In addition, the Shorewood City
Administrator continues to serve as Chair of the Steering
Committee of the Lake Minnetonka Area Cooperative Cities Group.
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FINANCIAL INFORMATION
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INTERNAL CONTROLS
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Management of the City is responsible for establishing and
maintaining an internal control structure in the accounting system
designed to ensure that the assets of the City are protected from
loss, theft or misuse and to ensure that fair, reliable and
accurate accounting data is compiled to allow for the preparation
of financial statements in conformity with generally accepted
accounting principles. The internal control structure is designed
to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance
recognizes that: 1) the cost of a control should not exceed the
benefits; 2) the valuation of costs and benefits requires
estimates and judgments by management. As part of the City's
annual audit, the internal control system is evaluated to the
extent necessary for audit purposes and changes are recommended
when needed.
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BUDGETING CONTROLS
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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
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budgetary control is established at the department 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,
1995 and the amount of increases or decreases in relation to the
prior year's revenues.
INCREASE
REVENUES AND OTHER % OF (DECREASE)
FINANCING SOURCES AMOUNT TOTAL FROM 1994
General Property Taxes $1,520,430 57.53% $24,519
Licenses and Permits 184,857 6.99% (71,386)
Intergovernmental 441,055 16.69% (341)
Charges for Services 20,505 0.77% (21,728)
Fines and Forfeitures 68,765 2.60% (5,233)
Special Assessments 171,403 6.49% (77,441)
Interest on Investments 147,916 5.60% 15,259
Miscellaneous 58,053 2.20% (54,353)
Operating Transfers In 30,000 1.13% (10,000)
TOTAL $2,642,984 100.00% ($200,704)
Overall revenues decreased by $200,704 from 1994 to 1995. The
largest change in revenue for 1995 from 1994 was in special
assessment revenue. There have been no new special assessments
projects in the last several years, thus, the amount of special
assessments collected is decreasing each year. In addition,
prepaYments of special assessments have fallen off as a result of
increasing interest rates. License and permit revenue is down
significantly from 1994. This is due in part to the interest
rate effect, and to fewer developable parcels within the City.
The number of permits issued in 1995 fell by 66 permits, which is
a 9.3% reduction from 1994. Zoning application fees and park
maintenance fees, which account for the charges for services
area, were lower in 1995. Despite the addition of a full-time
traffic control officer in 1995, fines and forfeiture revenue
fell for the year. The City received a balloon paYment on a
contract for deed held by the City in 1994, which inflated the
miscellaneous revenue for that year; thus, miscellaneous
revenues for 1995 are much lower. However, the 1995 level is
consistent when compared with years prior to 1994. Operating
transfers in are lower in 1995 due to the opening of a third
municipal liquor store, which required start-up capital.
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AMOUNT
% OF
TOTAL
(DECREASE)
FROM 1994
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General property tax collections increased from 1994 due largely
to the increase in tax increments on the Waterford commercial
development. The increments will be used to retire the revenue
bond debt incurred for improvements within the tax increment
district. The general tax levy for 1995 was held at the 1994
level, the third year that the levy was not increased. This,
together with the increased tax capacity of property within the
City, helped to lower the City's tax rate in 1995.
Intergovernmental revenues remained fairly constant from 1994.
Together, general property taxes and intergovernmental revenue
account for 74.22% of total revenue. Investment income rose in
1995 due to increased interest rates.
The following table presents a summary of General Fund and Debt
Service Fund expenditures for the fiscal year ended December 31,
1995 and the amount of increases or decreases in relation to the
prior year's expenditures.
EXPENDITURES AND
OTHER USES
CURRENT:
General Government
Public Safety
Public Works
Parks and Recreation
Operating Transfers
DEBT SERVICE:
Principal
Interest
TOTAL
$723,098 27.21% ($31,999)
650,703 24.49% 32,656
432,759 16.29% (940)
115,446 4.35% (13,154)
404,225 15.21% (197,275)
231,000 8.69% (450,000)
99,823 3.76% (21,039)
$2,657,054 100.00% ($681,751)
Overall expenditures were lower in 1995 from 1994. This is
primarily due to a decrease in debt service. The City issued
bonds in 1993 to refund the 1984 Improvement (1987 Refunding)
Bonds, which were called in February, 1994. This caused a one
year increase in debt service expenditures. General government
expenditures decreased in 1995 from 1994. Computer purchases in
1994 drove general government expenditures up in that year. No
large capital acquisitions were made in this area in 1995. Park
and recreation expenditures were also less in 1995, reflecting
lower maintenance and park planning costs. Public Works spending
decreased slightly from 1994.
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Public safety expenditures increased due to growth, with
Shorewood responsible for a larger portion of police and fire
contracts, and the addition of a full-time traffic control
officer. A federal grant received by the South Lake Minnetonka
Public Safety Department subsidized 75% of the officer's salary
in 1995. This percentage will decrease by 25% per year over the
next three years.
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. Operating transfers out were significantly lower
than the previous year. Transfers made in 1994 included amounts
for unbudgeted 1994 capital projects, thereby inflating the
amount of transfers for the year. Transfers for 1995 were as
budgeted for the year.
GENERAL FUND BALANCE
The fund balance of the General Fund increased by $46,670 in
1995, a difference of 3.12%. The fund balance as of December 31,
1995 is $1,544,348. Economic conditions during the year caused
larger than expected revenues, and employee awareness of
budgetary constraints resulted in lower expenditures, which
brought about an operating surplus. 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 an
adequate fund balance as a reserve to meet expenditures in the
General fund until property tax proceeds are received in July.
The fund balance now stands at 66.8% of the current year budget.
The policy of the City is to maintain a fund balance at 50% of
the current budget. As the City Council's intention is to
manage the fund balance at this level, a portion of the fund
balance has been budgeted in 1996 to lower the property tax levy.
This will reduce the fund balance to $1,454,348, or 57.8% of the
1996 budget, which still exceeds acceptable levels.
ENTERPRISE OPERATION
The City's enterprise fund activities for 1995 are summarized as
follows:
OPERATING OPERATING OPERATING
REVENUES EXPENSES INCOME (LOSS)
Water $198 566 $243 586 $(45 020)
Sewer 708 573 706 328 2 245
Recycling 46 883 69 734 (22 851)
Stormwater 44 336 31 011 13 325
Liquor - Tonka Bay 93 564 90 182 3 382
- Store I 78 946 137 648 (58 702)
- Store II 135 872 121 976 13 896
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Generally accepted accounting principles require the depreciation
of contributed assets, which results in net losses in some cases.
However, past and present City financial practice does not
include the recovery of such depreciation in the setting of
utility rates, which, in effect, would recover that cost a second
time. The City's utility rate setting is done with reference to
the working capital of the fund and assumes continued customer
contributions through special assessments.
DEBT ADMINISTRATION
As of December 31, 1995, the City's debt outstanding totaled
$4,444,500. Of this total, $1,575,000 were general obligation
special assessment bonds issued to finance the construction of
sanitary sewer, street, water and storm sewer improvements. The
City issued $1,920,000 in general obligation water revenue bonds
in 1995 to finance water system extensions and improvements.
Total outstanding general obligation water revenue bonds at year
end is $1,935,000. The bonds will be repaid from special
assessments on affected properties and from Water Fund revenues.
A general obligation storm sewer improvement bond issued for
storm sewer improvements within a special storm drainage district
has $14,500 outstanding at year end. The repaYment of these
bonds will be provided through an ad valorem tax levied against
properties within the storm drainage district.
Tax increment revenue bonds of $920,000 were issued for
construction of public improvements in the Waterford commercial
development. These bonds were sold directly to the developer.
As the developer has direct control over the pace of development,
retirement of the debt was to be made on a "pay-as-you-go" basis
from tax increments generated by the development. Because these
revenue bonds are not backed by the full faith and credit of the
City, in the absence of tax increments from Tax Increment
Financing District No.1, the City has no obligation to repay the
bonds. The first year tax increments were received was 1994,
when $264 in increments was collected. At year end, 1995,
$22,210 was available to retire this debt. The District will
expire in April, 2000.
The City's bond rating as rated by Moody's Investor Service is
"A1" 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 positive cash balance. This
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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 1995, the . City of
Shorewood earned $309,789 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 deposits, LMCIT purchases reinsurance to protect the
program from catastrophic and abnormal paYment claims. The
balance of the deposits and reserves are invested, with the
earnings accruing to the benefit of all participants. LMCIT' s
reserves and rates are reviewed annually by an actuary to help
assure that the program remains financially strong.
OTHER INFORMATION
INDEPENDENT AUDIT
Minnesota State Statutes require an annual audit of the City's
accounts by the Minnesota State Auditor or by independent
certified public accountants. The auditor's report on the
general purpose financial statements and schedules is included in
the financial section of this report.
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, 1994.
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
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Respectfully Submitted,
A~L.~
J(~es C. Hurm
City Administrator
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Alan J./ R lek
~Fina~5ft D'rector/Treasurer
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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.
x
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Shorewood,
Minnesota
For its Comprehensive Annual
Rnancial Report
for the Rscal Year Ended
December 31, 1994
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
. systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
-;=-~ J(. ~
President
jJfh-/k
Executive Director
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CITY OF SHOREWOOD, MINNESOTA
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SECTION II
FINANCIAL SECTION
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APID
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INDEPENDENT AUDITOR'S REPORT
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Honorable Mayor and City Council
City of Shorewood, Minnesota
CERTIFIED PUBLIC ACCOUNTANTS
AND CoNSULTANTS
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We have audited the accompanying general purpose financial statements of the
City of Shorewood, Minnesota, as of and for the year ended December 31, 1995
as listed in the table of contents. These general purpose financial
statements are the responsibility of the City of Shorewood, Minnesota's
management. OUr responsibility is to express an opinion on these general
purpose financial statements based on our audit.
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We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General
of the united States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the general purpose financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall general purpose financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
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In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City
of Shorewood, Minnesota at December 31, 1995 and the results of its operations
and cash flows of the Proprietary Fund Type for the year then ended, in
conformity with generally accepted accounting principles.
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In accordance with Government Auditing Standards we have also issued a report
dated March 28, 1996 on our consideration of the City's internal control
structure and a report dated March 28, 1996 on its compliance with laws and
regulations.
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Our audit was conducted for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The combining and individual
fund financial statements listed in the table of contents are presented for
the purpose of additional analysis and are not a required part of the general
purpose financial statements of the City of Shorewood, Minnesota. The
information has been subjected to the auditing procedures applied in the audit
of the general purpose financial statements and, in our opinion, is fairly
stated in all material respects in relation to the general purpose financial
statements taken as a whole.
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March 28, 1996
Minneapolis, Minnesota
1&, /ll.h
ABDO, ABDO & EICK
Certified Public Accountants
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Member of American Institute of Certified Public Accountants Private Companies Practice Section
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115 EAST HICKORY STREET, SUITE 302
P.O. BOX 3166
MANKA TO, MINNESOTA 56002.3166
(507) 625.2n7
FAX (507) 388-9139
204 EAST PEARL STREET
P.O. BOX 345
OWATONNA, MINNESOTA 55060.0345
(507) 451.9136
FAX (507) 451<0794
1060 NOIITHLAND PLAZA
3800 WEST 80TH STREET
MINNEAPOLIS, MINNESOTA 55431
(612) 835.9090
FAX (612) 896.3620
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CITY OF SHOREWOOP,.MINNESOTA
,
GENERAL PURPOSE) F1NANCIAL STATEMENTS
The generqIpurpose financial statements and notes to the financial !statements are inteIlded to
provide ~ overview and broad perspective of the City's. financial position and operations! These
statements present a summary set of information needed to control and analyze current Qperations
to determine compliance withlegal and budgetary limitations and to assist in financial planning.
The following general purpose financial statements are presehted:
:' ~ \"
. Combined Balanc~ Sheet - All Fund Types and Account Groups
Cbmbined Statement of Revenue, Expenditures and Changes iq Fund Balance - All
Governmental Fund Typ~s '
Statement of Revenue, ExpendiWres aJ.1.d Changes inFundBal"-nqe ~ Budget andActual-
General Fund /. j
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Combined Statement of Revenue, Expenses an9 Changes in Retained Earnings - All
Proprietary Fund Types .
Combined Statement of Cash Flows - All Proprietary Fund Types
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THIS PAGE HAS BEEN
LEFT BLANK INTENTIONALLY
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I Exhibit 1
Proprietary Fiduciary
I Fund Type Fund Type Account Groups
General Total
General Long-term (Memorandum anI v)
Enterprise Aqencv Fixed Assets Debt 1995 1994
I $ 2 881 217 $ $ $ $ 7 221 436 $ 5 450 774
502 47 498 53 579
I 234 838 262 523 307 644
55 107 203 018 163 243
796 612 1 312 298 690 525
34 411 119 928 140 259
I 257 447 257 447 153 415
17 737 17 737 13 434
6 653 460 4 124 018 10 777 478 9 935 467
11 799 11 799 364
I 187 409 187 409 128 979
1 419 732 1 419 732 1 485 579
I 1 111 631 1 111 631 1 275 755
$10 943 130 $187 409 $4 124 018 $2 531 363 $22 949 934 $19 799 017
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$ 242 842 $ $ $ $ 358 553 $ 177 635
I 4 092 21 863 41 112 36 363
68 710 24 760
7 593 545 595 690 555
34 411 119 928 140 259
I 1 935 000 2 509 500 4 444 500 2 770 500
187 409 187 409 128 979
I 2 223 938 187 409 2 531 363 5 765 807 3 969 051
8 033 534 8 033 534 7 100 609
I 4 124 018 4 124 018 3 894 635
685 658 685 658 692 370
1 419 732 1 485 579
I 3 035 781 2 777 396
(114 596) (120 623)
I 8 719 192 4 124 018 17 184 127 15 829 966
$10 943 130 $187 409 $4 124 018 $ 2 531 363 $22 949 934 $19 799 017
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1995
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Debt
General Service
Capital
proiects
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REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Special assessments
Interest on investments
Other
$1 489 822 $ 30 608
184 857
440 720 335
20 505
68 765
$
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84 413
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671 170 732
84 616 63 301
58 053
6 517
77 507
24 506
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TOTAL REVENUE
2 348 009
264 976
192 943
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EXPENDITURES
Current
General government
Public safety
Public works
Parks and recreation
Capital outlay
Debt service
Principal
Interest and service charges
723 098
650 703
432 759
115 446
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374 534
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231 000
99 .823
TOTAL EXPENDITURES
1 922 006
330 823
374 534
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EXCESS REVENUE (EXPENDITURES)
426 003
(65 847)
(181 591)
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
30 000
(404 225)
557 225
(163 000)
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TOTAL OTHER FINANCING SOURCES
(USES)
(374 225)
394 225
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EXCESS REVENUE AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES
51 778
(65 847)
212 634
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FUND BALANCE, JANUARY 1
1 497 678
1 485 579
1 159 095
FUND EQUITY TRANSFER IN
6 449
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FUND EQUITY TRANSFER OUT
( 5 108)
(1 341)
FUND BALANCE, DECEMBER 31
$1 544 348 $1 419 732 $1 376 837
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See Notes to Financial Statements.
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I Exhibit 2
I Total
(Memorandum Only)
1995 1994
I $1 520 430 $1 495 911
184 857 256 243
525 468 555 564
20 505 42 233
I 68 765 73 998
177 920 265 439
I 225 424 197 639
82 559 181 028
2 805 928 3 068 055
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723 098 755 097
I 650 703 618 047
432 759 433 699
115 446 128 600
374 534 616 434
I 231 000 681 000
99 823 120 862
I 2 627 363 3 353 739
178 565 (285 684)
I 587 225 994 425
(567 225) (923 825)
I 20 000 70 600
I 198 565 (215 084)
4 142 352 4 357 436
I 6 449 531 847
(6 449) (531 847)
I $4 340 917 $4 142 352
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CITY OF SHOREWOOD, MINNESOTA Exhibit 3
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 1995
Budqet
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Special assessment
Interest on investments
Miscellaneous revenue
$1 491 888
169 900
440 720
32 000
84 000
75 000
17 500
TOTAL REVENUE
2 311 008
EXPENDITURES
General government
Public safety
Public works
Parks and recreation
745 562
669 420
445 601
126 177
TOTAL EXPENDITURES
1 986 760
EXCESS REVENUE (EXPENDITURES)
324 248
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
50 000
(404 225)
TOTAL OTHER FINANCING
SOURCES (USES)
(354 225)
EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES
$ (29 977)
FUND BALANCE, JANUARY 1
FUND EQUITY TRANSFERS OUT
FUND BALANCE, DECEMBER 31
See Notes to Financial Statements.
-6-
Actual
$1 489 822
184 857
440 720
20 505
68 765
671
84 616
58 053
2 348 009
723 098
650 703
432 759
115 446
1 922 006
426 003
30 000
(404 225)
(374 225)
51 778
1 497 678
(5 108)
$1. 544 348
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Variance -
Favorable
(Unfavorable )
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$ (2 066)
14 957
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(11 495)
(15 235)
671
9 616
40 553
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37 001
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22 464
18 717
1.2 842
10 731
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64 754
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101 755
(20 000)
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(20 000)
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$ 81 755
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CITY OF SHOREWOOD, MINNESOTA Exhibit 4
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1995
OPERATING REVENUE
Sales
Less cost of sales
GROSS PROFIT
Charges for services
Permits and connection fees
GROSS PROFIT AND REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Metropolitan Waste Control Commission disposal charges
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES (EXPENSES)
General property taxes
Interest on investments
Other income
Interest expense
TOTAL NONOPERATING REVENUES (EXPENSES)
INCOME BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET LOSS
(6 712)
RETAINED EARNINGS, JANUARY 1
692 3~70
RETAINED EARNINGS, DECEMBER 31
$ 685 658
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1995
Exhibit 5
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CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Enterprise
$ (93 725)
8 143
274 898
62
22 410
(15 502)
2 168
(34 411)
(104 032)
(4 303)
112 767
1 249
7 593
34 411
211 728
(200 000)
180 000
(20 000)
1 908 250
(15 000)
(3 001)
(805 536)
17 506
104 662
1 206 881
84 365
1 482 974
1 398 243
$2 881 217
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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
Due for other funds
Inventory
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
Due to other funds
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CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers to other funds
Operating transfers from other funds
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CASH FLOWS USED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of property and equipment
Property taxes levied for debt service
Special assessments paid
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CASH FLOWS PROVIDED BY CAPITAL AND RELATED FINANCING
ACTIVITIES.
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CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
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INCREASE IN CASH AND CASH EQUIVALENTS
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CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
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NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
$
81 675
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See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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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.
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A. Reportinq Entity
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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.
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B. Fund Accountinq
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Fund accounting is designed to demonstrate legal compliance and to aid
financial management by segregating transactions related to certain
government functions or activities.
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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:
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GOVERNMENTAL FUND TYPES:
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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.
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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.
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Capital Projects Funds - Capital Projects Funds are used to account
for all resources used for the acquisition or construction of
major capital facilities.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
PROPRIETARY FUND TYPES:
Enterprise Funds - Enterprise Funds are used to account for
operations (a) that are financed and operated in a manner similar
to private business enterprises where the intent of the governing
body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing
basis be financed or recovered primarily through user charges; or
(b) where the revenue earned, expenses incurred, and/or net income
is appropriate for capital maintenance, public policy, management
control, accountability, or other purposes.
FIDUCIARY FUND TYPES:
Agency Funds - Agency Funds are used to account for assets held by
the City on behalf of others as their agent.
The governmental fund types previously discussed are designed to
account for the financial flow of a particular fund; therefore, they
generally include only current assets and current liabilities on their
balance sheets. Their reported fund balance is considered a measure of
available spendable resources. The City also maintains two account
groups for noncurrent assets and liabilities. These account groups are
concerned only with the measurement of financial position. They are as
follows:
General Fixed Assets Account Group - This separate account group
contains the fixed assets used in the governmental fund type
operations. They are assets of the City as a whole and not of
individual funds. Public domain general fixed assets consisting
of certain improvements other than buildings, including roads,
curbs and gutters, streets and sidewalks, drainage systems, are
not capitalized along with other general fixed assets. The assets
are valued at estimated historical cost or appraised value and no
depreciation has been provided on them.
General Long-term Debt Account Group - This separate account group
contains the long-term liabilities of the City expected to be
financed from governmental funds. They are liabilities of the
City as a whole and not of individual funds. The exception to
this rule is for proprietary fund type long-term debt which is
accounted for in that fund type.
All proprietary 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.
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.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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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.
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The modified accrual basis of accounting is used by all governmental
fund types and agency funds. Under the modified accrual basis of
accounting, revenues are recognized when susceptible to accrual (i.e.,
when they become both measurable and available). "Measurable" means
collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period. The government
considers property taxes as available if they are collected within 60
days after year end. Special assessments are recognized as revenue as
the principal amount is collected. Substantially all other sources of
revenue are accrued.
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Expenditures are generally recorded when the related fund liability is
incurred except principal and interest on general long-term debt which
are recorded as fund liabilities when due.
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Proprietary 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.
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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:
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Furniture and equipment
Distribution and collection systems
5 - 10 years
40 years
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D. Budqets
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Budgets are adopted on a basis consistent with generally accepted
accounting principles. An annual appropriated budget is adopted for
the general fund. All annual appropriations lapse at fiscal year end.
Project-length financial plans are adopted for all capital projects
funds.
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The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
1. Prior to January I, the budget is adopted by the City Council.
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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
department level but management control is exercised at the
line item level.
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3. Reported budget amounts are as originally adopted or as amended
by Council approved supplemental appropriations and budget
transfers. Supplemental budgetary appropriations were not
material in 1995 in relation to the original appropriation.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
E. Cash and Investments
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Cash and investments include demand deposits and short-term I
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 I
reported at market value.
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.
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G. Inventories
Inventories are valued at average cost, which approximates market,
using the first-in/first-out (FIFO) method.
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H. Prepaid Items
Payments made to vendors for service that will benefit periods beyond
December 31, 1995 are recorded as prepaid items.
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I. Fixed Assets
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General fixed assets are not capitalized in the funds used to acquire
or construct them. Instead, capital acquisition and construction are
reflected as expenditures in governmental funds, and the related assets
are reported in the general fixed assets account group. All purchased
fixed assets are valued at cost where historical records are available
and at an estimated historical cost where no historical records exist.
Donated fixed assets are valued at their estimated fair market value on
the date received.
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Public domain ("infrastructure") general fixed assets consisting of
roads, bridges, curbs and gutters, streets and sidewalks, drainage
systems and lighting systems are not capitalized, as these assets are
immovable and of value only to the government.
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Assets in the general fixed assets account group are not depreciated.
Depreciation of buildings, equipment and vehicles in the proprietary
fund types is computed using the straight-line method.
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The costs of normal maintenance and repairs in the proprietary fund
types that do not add to the value of the asset or materially extend
asset lives are not capitalized. Improvements are capitalized and
depreciated over the remaining useful lives of the related fixed
assets.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
J. Compensated Absences
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Vested accumulated vacation or sick leave that is expected to be
liquidated with expendable available financial resources is reported as
an expenditure and a fund liability of the governmental fund that will
pay it. Amounts of vested or accumulated vacation leave that are not
expected to be liquidated with expendable available financial resources
are reported in the general long-term debt account group. No expenditure
is reported for these amounts. Vested or accumulated vacation leave of
proprietary fund types is recorded as an expense and liability of those
funds as the benefits accrue to employees. No liability is recorded for
nonvesting accumulating rights to receive sick pay benefits.
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K.
Lonq-term Obliqations
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Long-term debt is recognized as a liability of a governmental fund when
due, or when resources have been accumulated in the debt service fund
for payment early in the following year. For other long-term
obligations, only that portion expected to be financed from expendable
available financial resources is reported as a fund liability of a
governmental fund.
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Long-term liabilities expected to be financed from proprietary fund
operations are accounted for in those funds.
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All long-term bonded debt, except the Tax Increment Revenue Bonds,
issued by the City is backed by the full faith and credit of the City.
The general obligation bonds include special assessment and revenue
bonds, which are intended to be repaid from revenue sources other than
general property taxes.
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L. Fund Eaui tv
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Contributed capital is recorded in proprietary funds that have received
capital grants or contributions from developers, customers or other
funds. Reserves represent those portions of fund equity not
appropriable for expenditure or legally segregated for a specific
future use. Designated fund balances represent tentative plans for
future use of financial resources.
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M.
Interfund Transactions
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Quasi-external transactions are accounted for as revenue, expenditures
or expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly
applicable to another fund are recorded as expenditures/expenses in
the reimbursing fund and as reductions of expenditures/expenses in the
fund that is reimbursed.
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All other interfund transactions, except quasi-external transactions
and reimbursements, are reported as transfers. Nonrecurring or
nonroutine permanent transfers of equity are reported as residual
equity transfers. All other interfund transfers are reported as
operating transfers.
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-13-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
N. Memorandum Only - Total Columns
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Total columns on the general purpose financial statements are captioned I
"memorandum only" to indicate that they are presented only to
facilitate financial analysis. Data in these columns do not present
financial position, results of operations or changes in cash flows in
conformity with generally accepted accounting principles. Neither are I
such data comparable to a consolidation. Interfund eliminations have
not been made in the aggregation of this data.
O. Comparative Data
Comparative total data for the prior year has been presented in the
accompanying financial statements in order to provide an understanding
of changes in the government's financial position and operations.
However, comparative data have not been presented in all statements
because their inclusion would make certain statements unduly complex
and difficult to understand.
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.
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.
Formal budgetary integration is employed as a management control device
during the year. Budget revisions between departments 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 department level. During the year, supplementary appropriations were
not material.
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.
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Note 3: DEPOSITS AND INVESTMENTS
Cash surpluses are pooled and invested in certificates of deposit and I
short-term government securities. Investment earnings are allocated to
funds on the basis of average cash balances. Investments are stated at
cost, which approximates market value, and are not identified with specific I
funds.
Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those I
depository banks authorized by the City Council, all of which are members
of the Federal Reserve System.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 3: DEPOSITS AND INVESTMENTS - CONTINUED
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Minnesota Statutes require that all City deposits be protected by
insurance, surety bond, or collateral. The market value of collateral
pledged must equal 110% of the deposits not covered by insurance or bonds
(140% in the case of mortgage notes pledged) .
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Authorized collateral includes the legal investments described below, as
well as certain first mortgage notes, and certain other state or local
government obligations. Minnesota Statutes require that securities pledged
as collateral be held in safekeeping by the City treasurer or in a
financial institution other than that furnishing the collateral.
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Balances at December 31, 1995:
Bank
Balances
Carrying
Amount
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Insured or collateralized by securities held
by the City or its agent in the City's name
$3 185 157
$3 124 346
Investments
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The City also invests idle funds, as authorized by Minnesota Statutes, in
the following:
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a. Direct obligations or obligations guaranteed by the United States or
its agencies.
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b. Shares of investment companies registered under the Federal Investment
Company Act of 1940 and whose only investments are in securities
described in (a) above.
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c. Bankers acceptances of United States Banks eligible for purchase by the
Federal Reserve System.
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d. Commercial paper issued by United States corporations or their Canadian
subsidiaries, of the highest quality, and maturing in 270 days or less.
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e. Repurchase or reverse repurchase agreements with banks that are members
of the Federal Reserve System with capitalization exceeding
$10,000,000, a primary reporting dealer in U.S. government securities
to the Federal Reserve Bank of New York, or certain Minnesota
securities broker-dealers.
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Balances at December 31, 1995:
Securities Credit Risk Cateqorv Carrying Market
Type 1 2 3 Amount Value
U.S. Government $2 502 062 $ $ $2 502 062 $2 561 603
Commercial Paper 1 592 898 1 592 898 1 707 695
Total investments $4 094 960 $ $ 4 094 960 4 269 298
Investment Pools
Deferred compensation investments 187 409 187 409
Total Investments $4 282 369 $4 456 707
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-15-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 3: DEPOSITS AND INVESTMENTS - CONTINUED
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
Petty cash
$3 124 346
4 282 369
2 130
Total
$7 408 845
Classified on the combined balance sheet as:
Cash and investments
Investments for deferred compensation
plans, at market
$7 221 436
187 409
Total
$7 408 845
Note 4: RECEIVABLES
A. Property Taxes
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
partially reduced by a homestead and agricultural credit aid. These
credits are paid to the City by the State of Minnesota in lieu of taxes
levied against homestead property. The State remits this credit in two
equal installments in July and December each year.
Allowances are provided for the full amount of delinquent taxes except
those collected by the County in November and December and remitted to
the City within sixty days after year end. The allowance is reported
on the balance sheet as deferred revenue.
B. Accounts Receivable
Accounts receivable include amounts billed for services provided before
year end.
-16-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 4: RECEIVABLES - CONTINUED
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.
Special assessments are recognized as a receivable and deferred revenue
when the assessments are certified to the County for collection.
Special assessments are recognized as revenue when received in cash.
Note 5: FIXED ASSETS
The following is a summary of changes in the general fixed assets account
group during the year:
Balance Balance
January 1, December 31,
1995 Additions Retirements 1995
Land $ 456 826 $ $ $ 456 826
Buildings and structures 1 327 073 5 000 1 322 073
Improvements other
than buildings 1 158 271 110 074 1 268 345
Furniture and equipment 952 465 297 520 173 211 1 076 774
Total general fixed
assets $3 894 635 $407 594 $178 211 $4 124 018
A summary of proprietary fund type property and equipment at December 31,
1995 follows:
Liquor
Public Utilities Funds
Water Sewer Store I Store II Total
Furniture and equipment $ 24 178 $ 37 827 $ 75 513 $ 21 650 $ 159 168
Collection and
distribution systems 3 774 491 7 427 462 11 201 953
Total 3 798 669 7 465 289 75 513 21 650 11 361 121
Less accumulated
depreciation (754 231) (3 933 596) (7 055) (12 779) (4 707 661)
Net property, plant and
equipment $3 044 438 $3 531 693 $ 68 458 $ 8 871 $ 6 653 460
Note 6: LONG-TERM OBLIGATIONS
Long-term Obligations - Bonds
The following is a summary of changes in long-term bonded debt of the City
for the year ended December 31, 1995:
-17-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 6: LONG-TERM OBLIGATIONS - CONTINUED
General Long-term Debt
Account Group
Special Tax Increment
Assessment Revenue Bond
Payable January 1, 1995
Debt retired
Debt issued
$1 820 500
231 000
$920 000
Payable December 31, 1995 $1 589 500
$920 000
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Proprietary
Funds
Revenue Total
$ 30 000 $2 770 500
15 000 246 000
1 920 000 1 920 000
$1 935 000 $4 444 500
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The long-term bonded debt obligations outstanding at December 31, 1995 are
summarized as follows:
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Types of Bonds
Maturities
General obligation special
assessment bonds
Tax increment revenue bonds
General obligation water
revenue bonds
1996 - 2004
1996 - 2000
1996 - 2011
Total
Balance
December 31,
Rate 1994
3.50 - 8.00% $1 589 500
9.00 920 000
3.90 - 8.50 1 935 000
$4 444 500
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The annual requirements to amortize all bonded debt outstanding at
December 31, 1995, including interest payments totaling $1,824,758 are as
follows:
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Year Ending
December 31,
General Long-term Debt
Account Group
Special Tax Increment
Assessment Revenue Bond
1996
1997
1998
1999
2000
2001 - 2005
2006 - 2010
2011
$
$ 716 482
250 240
233 680
217 120
200 560
310 505
293 955
274 510
262 543
240 650
545 763
Total
$1 927 926
$1 618 082
Long-term Obligations - Other
Proprietary
Funds
Revenue Total
$ 84 255 $1 111 242
213 203 757 398
213 165 721 355
202 971 682 634
202 518 643 728
914 975 1 460 738
763 725 763 725
128 438 128 438
$2 723 250 $6 269 258
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Changes in long-term obligations other than bonds are summarized as
follows:
Payable, January 1
Net change in compensated absences
Payable, December 31
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Compensated
Absences
Payable
$ 20 834
1 029
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$ 21 863
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 7:
OPERATING LEASES
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The City leases space for both liquor store operations. These leases are
considered, for accounting purposes, to be operating leases. Lease expense
for the year ended December 31, 1995 amounted to $92,863. Future minimum
lease payments for the liquor store #I, #II and Tonka Bay leases are as
follows:
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Years Ending
December 31. Store I
1996 $ 49 500
1997 49 500
1998 49 500
1999 49 500
2000 49 500
2001 49 500
Total $297 000
Store II
Tonka Bay
$ 22 192
$ 12 000
12 000
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$ 22 192
$ 24 000
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The new lease for the Store I began January 1, 1995 and will run through
December 31, 2001.
Note 8: FUND EQUITY
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The various components of fund equity are contributed capital, retained
earnings, and fund balance.
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Contributed Capital - The amount represents the value of assets contributed
to the enterprise funds by other City funds. Additions during the year
totaled $932,925.
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Reserved Fund Balance - This represents the portion of fund balance which
cannot be appropriated for future expenditures. The following reservations
of fund equity have been made as of December 31, 1995:
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Debt Service Funds
1993 Improvement and Refunding
Shorewood Oaks
Waterford III Tax Increment
Shady Hills Storm Sewer Improvement
1991 Improvement and Refunding
$ 144 265
870 973
22 210
5 778
376 506
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Total Reserved Fund Balance
$1 419 732
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Designated Fund Balance - Designated amounts indicate tentative plans for
future uses of financial resources. The following unreserved fund balances
have been designated:
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General Fund
Designated for working capital
Capital Projects Funds
Designated for capital projects
Capital Improvements
Park Capital Improvement
Equipment Replacement
Street Reconstruction
MSA Construction
Trail Capital Improvement
1995 Freeman Park Improvement
Silverwood Park Grading
Vine Hill Improvement
Cathcart Park Improvements
Total Designated Fund Balance
$1 544 348
81 240
93 361
130 648
932 068
139 673
68 025
24 039
1 177
954
20 248
$3 035 781
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-19-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 8: FUND EQUITY - CONTINUED
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Unreserved and undesignated amounts are available to finance current and
future years' expenditures.
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Note 9: COMPLIANCE AND ACCOUNTABILITY
Fund Deficits
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The following funds have a deficit fund balance or retained earnings as of
December 31, 1995:
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Capital projects Funds
1995 Manor Park Improvement
Senior Community Center
City Hall Parking Lot
Season Improvements
Old Market Road Trail
Enterprise Fund
Water Fund
$ 5 910
27 101
562
59 205
21 818
The deficits in all funds will be eliminated by future revenues.
145 490
Note 10: SEGMENT INFORMATION - PROPRIETARY FUNDS
Water
Sewer
Recvclinq
Sales less cost of
sales of $1,165,021 $ $ $
Charges for services 190 100 679 832 46 883
Permits and connection
fees 8 466 28 741
Gross profit and
revenue
Expenses excluding
depreciation
Income (loss) before
depreciation
Depreciation
Operating income
(loss)
198 566
708 573
163 969
520 927
34 597
79 617
187 646
185 401
(45 020)
2 245
Other revenue (expenses)
General property
taxes
Interest on
investments
Other income
Interest expense
17 506
36 397
8 112
(3 001)
39 006
46 883
69 734
(22 851)
(22 851)
1 475
Storm
Water
Mgmt.
Utility
Liquor
Tonka
Bay,
Store I
and
Store II
$ $308 382 $
44 336
44 336
31 011
13 325
13 325
4 647
308 382
340 241
(31 859)
9 565
(41 424)
2 840
31
Total other revenue
Income (loss) before
transfers
Operating transfers from
(to) other funds, net
13 994
39 006 1 475 4 647 2 871
59 014
41 251 (21 376) 17 972 (38 553)
Net income (loss) $
13 994 $
10 000 (30 000)
41 251 $ (21 376) $ 27 972 $ (68 553) $
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Total
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308 382 I
961 151
37 207
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1 306 740
1 125 882 I
180
274
858
583
725) I
(93
17 506 I
84 365 I
8 143
(3 001)
107 013 I
13 288
(20 000) I
( 6 712)
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 10: SEGMENT INFORMATION - PROPRIETARY FUNDS - CONTINUED
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Liquor
Tonka
Storm Bay,
Water Store I
Mgmt. and
Water Sewer Recvclinq Utilitv Store II Total
Net working capital $2 434 489 $1 127 827 $ 23 069 $101 250 $287 298 $ 3 973 933
Additions to property
and equipment 728 495 82 841 75 875 887 211
Bonds payable from
operating revenues 1 935 000 1 935 000
Total assets 5 654 514 4 668 616 23 069 114 920 482 011 10 943 130
Total equity 3 570 726 4 659 520 23 069 101 250 364 627 8 719 192
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Note 11: DEFERRED COMPENSATION PLAN
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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.
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All amounts of compensation deferred under the plan, all property and
rights purchased with those amounts, and all income attributable to those
amounts, property or rights are (until paid or made available to the
employee or other beneficiary) solely the property and rights of the City
subject only to the claims of the City's general creditors. Participants'
rights under the plan are equal to those of general creditors of the
government in an amount equal to the fair market value of the deferred
account for each participant.
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The City has no liability for losses under the plan but does have the duty
of due care that would be required of an ordinary prudent investor. The
City believes it is unlikely that it will use the assets to satisfy the
claims of general creditors in the future.
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The plan assets are on deposit with and managed by trustees other than the
City. Each employee has a choice of investment options within the plan.
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Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE
A.
Plan Description
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All full-time and certain part-time employees of the City of Shorewood,
Minnesota are covered by defined benefit pension plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) which is a
cost-sharing, multiple-employer retirement plan. This plan is
established and administered in accordance with Minnesota Statutes,
Chapters 353 and 356.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated Plan members are covered by Social Security and Basic Plan
members are not. All new members must participate in the Coordinated
Plan. The payroll for employees covered by PERF for the year ended
December 31, 1995 was $649,612, the City'S total payroll was $790,162.
PERA provides retirement benefits as well as disability benefits to
members, and benefits to survivors upon death of eligible members.
Benefits are established by State Statute, and vest after three years
of credited service. The defined retirement benefits are based on a
member's average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two
methods are used to co~ute benefits for Coordinated and Basic Plan
members. The retiring member receives the higher of step-rate benefit
accrual formula (Method 1) or a level accrual formula (Method 2) .
Under Method 1, the annuity accrual rate for a Basic Plan member is 2.0
percent of average salary for each of the first 10 years of service and
2.5 percent for each remaining year. For a Coordinated Plan member,
the annuity accrual rate is 1.0 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 Plan members and 1.5 percent for Coordinated Plan members. For
PERF members whose annuity is calculated using Method 1, a full annuity
is available when age plus years of service equal 90. A reduced
retirement annuity is also available to eligible members seeking early
retirement.
There are different types of annuities available to members upon
retirement. A 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.
The benefit provisions stated in the previous paragraphs of this
section are current provisions and apply to active plan participants.
Vested, terminated employees who are entitled to benefits but are not
receiving them yet, are bound by the provisions in effect at the time
they last terminated their public service.
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B. Contributions Required and Contributions Made
Minnesota Statutes Chapter 353 sets the rates for employer and employee I
contributions. The City makes annual contributions to the pension
plans equal to the amount required by State Statutes. According to
Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full
funding required for the PERF is July 1, 2020. As part of the annual I
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 I
"required" contribution rate. The required contribution rate consists
of (a) normal costs based on entry age normal cost methods, (b) a
supplemental contribution for amortizing any unfunded actuarial
accrued liability by the date required for full funding, and (c) an I
allowance for administrative expenses. Current combined statutory
contribution rates and actuarially required contribution rates for the
plans are as follows:
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
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Statutory Rates
Employees Employer
Required
Rates*
PERF (A blended rate for both the
Basic and Coordinated Plans)
4.31%
4.60%
9.76%
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* The recommended rates scheduled above represent the required rates
for fiscal year 1995 contributions as reported in the July 1, 1994
actuarial valuation reports.
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Total contributions made by the City during fiscal year 1995 were:
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Amounts
Emoloyees Employer
Percentage of
Covered Payroll
Employees Employer
PERF
$ 27 479
$ 29 103
4.23%
4.48%
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The City'S contribution for the year ended December 31, 1995 to the
PERF represented .024 percent of total contributions required of all
participating entities.
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C. Fundinq Status and Proqress
1.
Pension Benefit Obliqation
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The "pension benefit obligation" is a standardized disclosure
measure of the present value of pension benefits, adjusted for the
effects of projected salary increases and step-rate benefits,
estimated to be payable in the future as a result of employee
service to date. The measure is the actuarial present value of
credited projected benefits and is intended to help users assess
PERA's funding status on a going-concern basis, assess progress
made in accumulating sufficient assets to pay benefits when due,
and make comparisons among Public Employees Retirement Systems and
participating employers. The measure is independent of the
actuarial funding method used to determine required contributions,
which is discussed in Note 4B. PERA does not make separate
measurements of assets and pension benefit obligations for
individual participating employers.
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The pension benefit obligations for the PERF as of June 30, 1995 is
shown below:
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(In thousands) PERF
Total pension benefit obligations $5 994 492
Net assets available for benefits, at cost 5 074 357
Unfunded (assets in excess of) pension
benefit obligations $ 920 135
Net assets available for benefits, at market $5 266 688
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 12: DEFINED BENEFIT PENSION PLAN - STATEWIDE - CONTINUED
The pension benefit obligation was determined as part of an
actuarial valuation at July 1, 1995. 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 an age related table which incorporated a 5.0 percent
base inflation assumption; (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.
2. Chanqes in Actuarial Assumptions and Methods
Since the July I, 1994 actuarial valuation, there were no changes
in actuarial assumptions of the PERF which impacted funding costs.
3. Chanqes in Plan provisions
The 1995 legislative session did not include any benefit improvements
which would impact funding costs for the PERF.
D. Ten-vear Historical Trend Information
Ten-year historical trend information is presented in PERA's
Comprehensive Annual Financial Report for the year ended June 30, 1995.
This information is useful in assessing the pension plan'S accumulation
of sufficient assets to pay pension benefits as they become due.
E. Related Party Investments
As of June 30, 1995 and for the fiscal year then ended, PERA held no
securities issued by the City or other related parties.
Note 13: 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.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 13: TAX INCREMENT REVENUE BONDS - CONTINUED
The bonds payable are reported as a liability in the General Long-term Debt
Account Group in the financial statements even though:
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The bonds issued are tax increment revenue bonds.
· The bonds are not backed by the full faith and credit of the City.
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The bonds will be repaid only to the extent that tax increments are
generated from the Tax Increment Financing District.
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Note 14: JOINT POWERS AGREEMENT
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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 1995 by the City of Shorewood is
43.9%.
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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.
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The Department has accounts payable, and accrued payroll and compensated
absences in the General Fund of $148,808, and deferred compensation
benefits payable in the Agency Fund of $160,467 at year end. There is no
other current or long-term debt outstanding as of December 31, 1995. The
following is a summary of the Department's balance sheet as of December 31,
1995 and the statement of revenue, expenditures and changes in fund balance
for the General Fund for the year ended December 31, 1995. This
information is taken from the financial statements of the Department which
may be obtained directly from them.
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SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1995
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General Totals
General Agency Fixed (Memorandum Only)
Fund Fund Assets 1995 1994
Total assets $288 875 $160 467 $314 280 $763 622 $673 733
Liabilities $148 808 $160 467 $ $309 275 $263 812
Fund equity 140 067 314 280 454 347 409 921
Total liabilities and
fund equity $288 875 $160 467 $314 280 $763 622 $673 733
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 14: JOINT POWERS AGREEMENT - CONTINUED
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, 1995
1995 1994
Variance -
Favorable
Budqet Actual (Unfavorable) Actual
Total revenue $1 067 918 $1 149 971 $ 82 053 $1 088 905
Total expenditures 1 082 918 1 119 473 (36 555) 1 073 448
Excess of revenue over
(under) expenditures $ (15 000) 30 498 $ 45 498 15 457
Fund balance, January 1 109 569 94 112
Fund balance, December 31 $ 140 067 $ 109 569
Note 15: INTERFUND RECEIVABLES AND PAYABLES
The following is a summary of interfund receivables and payables at year
end:
Receivable
From
Payable
To
Capital Projects Funds
Capital Improvements $ $ 1 951
Park Capital Improvement 5 910
Street Reconstruction 58 732
Trail Capital Improvements 18 924
1995 Manor Park Improvement 5 910
Senior Community Center 1 951
Season Improvements 58 732
Old Market Road Trail 18 924
Enterprise Funds
Store I Liquor Fund 34 411
Store II Liquor Fund 34 411
Total $119 928 $119 928
Note 16: RELOCATION OF MUNICIPAL LIQUOR STORE #1
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.
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Note 17: TONKA BAY LIQUOR OPERATING LEASE
In December, 1994, the City of Shorewood entered into an agreement with the I
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 I
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 I
operation.
-26- I
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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Note 18: OPERATING TRANSFERS
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A schedule of transfers follows:
Transfer
In
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General Fund $ 30 000
Capital Projects Funds
Capital Improvements 5 000
Park Capital Improvements 40 000
Equipment Replacement 99 225
Street Reconstruction 250 000
1995 Manor Park Improvement 25 200
1995 Freeman Park Improvements 33 000
Silverwood Park Grading 20 000
City Hall Parking Lot 20 000
Cathcart Park Improvements 64 800
Enterprise Funds
Stormwater Management Utility 10 000
Liquor Fund
Tonka Bay
Store I 170 000
Store II
Total $767 225
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Note 19: CONTRIBUTED CAPITAL
Transfer
Out
$404 225
20 000
143 000
150 000
50 000
$767 225
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The following is a summary of changes in contributed capital of the City
for the year ended December 31, 1995:
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Water Sewer 'Total
Balance, January 1 $2 864 966 $4 235 643 t:..., :LOa 609
''ii''; .'
Additions 851 250 81 675 932 925
Balance, December 31 $3 716 216 $4 317 318 $8 033 534
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CITY OF SHOREWOOD, MINNESOTA
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THE GENERAL F':UND
The General Fund is used to account for resources traditionally associated withgovtmment
which are not required legally or by sound financial management to be accounted for in
~ther fuhds. It normally receives a greater variety and number of taxes and other general
revenues than any qther fund. Tht{majority of the current day-to-day operations will be
financed from this fund.
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-1
GENERAL FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
1995 1994
ASSETS
Cash and investments $1 576 162 $1 503 390
Receivables
Taxes 44 622 52 161
Accounts 22 221 23 779
Accrued interest 56 452 49 187
Special assessments
Delinquent 2 148 1 742
Deferred 735 188
TOTAL ASSETS $1 702 340 $1 630 447
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable $ 69 941 $ 37 901
Salaries payable 15 157 12 686
Refundable deposits payable 43 560 24 760
Deferred revenue 29 334 57 422
TOTAL LIABILITIES 157 992 132 769
FUND BALANCE
Unreserved
Designated for working capital 1 544 348 1 497 678
TOTAL LIABILITIES AND FUND BALANCE $1 702 340 $1 630 447
-28-
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I
GENERAL FUND
STATEMENT OF REVENUE , EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1995 I
(With comparative amounts for the year ended December 31, 1994)
1995 1994 I
Variance -
Favorable
Budqet Actual (Unfavorable) Actual
REVENUE I
General property taxes
General property taxes $1 491 888 $1 429 491 $ (62 397) $1 410 613
Fiscal disparities 60 331 60 331 76 785
Total 1 491 888 1 489 822 (2 066) 1 487 398 I
Licenses and permits
Business 10 200 9 250 (950) 10 175 I
Nonbusiness 159 700 175 607 15 907 246 068
Total 169 900 184 857 14 957 256 243
Intergovernmental - State I
Community development block
grant 2 025
Property tax credits 426 970 426 970 425 265 I
Other 13 750 13 750 13 750
Total 440 720 440 720 441 040
Charges for services I
General government 6 500 13 156 6 656 33 447
Parks and recreation 25 500 7 349 (18 151) 8 786
Total 32 000 20 505 (11 495) 42 233 I
Fines and forfeitures 84 000 68 765 (15 235) 73 998
Miscellaneous revenue I
Special assessments 671 671
Interest on investments 75 000 84 616 9 616 78 021
Other 17 500 58 053 40 553 112 406 I
Total 92 500 143 340 50 840 190 427
TOTAL REVENUE 2 311 008 2 348 009 37 001 2 491 339 I
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-29- Continued I
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31, 1995
I (With comparative amounts for the year ended December 31, 1994)
1995 1994
I Variance -
Favorable
Budqet Actual (Unfavorable) Actual
EXPENDITURES
I General government
Mayor and Council
Personal services $ 13 714 $ 13 564 $ 150 $ 13 528
Supplies 500 830 (330) 1 636
I Other services and charges 38 665 36 856 1 809 26 343
Contingency 31 271 31 271
Total 84 150 51 250 32 900 41 507
I Administrative
Personal services 89 029 95 053 (6 024) 87 804
Supplies 800 363 437 550
I Other services and charges 8 900 7 007 1 893 6 708
Total 98 729 102 423 (3 694) 95 062
I Finance
Personal services 82 383 80 642 1 741 77 651
Supplies 3 450 3 381 69 2 796
Other services and charges 8 150 5 197 2 953 5 001
I Total 93 983 89 220 4 763 85 448
Professional services
I Personal services 33 937 4 290 29 647
Supplies 800 1 257 (457) 1 004
Other services and charges 150 700 197 337 (46 637) 197 185
Capital outlay 5 000 4 006 994
I Total 190 437 206 890 (16 453) 198 189
I Planning and zoning
Personal services 87 032 88 156 (1 124) 87 396
Supplies 1 600 436 1 164 813
Other services and charges 7 750 7 303 447 4 516
I Total 96 382 95 895 487 92 725
Municipal building
I Supplies 10 350 12 309 (1 959) 5 346
Other services and charges 80 650 80 217 433 79 388
Capital outlay 75 179
I Total 91 000 92 526 (1 526) 159 913
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I -30- Continued
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I
GENERAL FUND Continued
STATEMENT OF REVENUE , EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31, 1995 I
(with comparative amounts for the year ended December 31, 1994)
1995 1994 I
Variance -
Favorable
Budqet Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED I
General government
Other general government
services
Personal services $ 62 256 $ 60 275 $ 1 981 $ 62 453 I
Supplies 13 750 14 636 (886) 10 822
Other services and charges 14 875 9 983 4 892 8 978
Total 90 881 84 894 5 987 82 253 I
Total general government 745 562 723 098 22 464 755 097
Public safety I
Police protection
Supplies 500 339 161 74
Other services and charges 448 389 442 176 6 213 423 873
Total 448 889 442 515 6 374 423 947 I
Fire protection
Other services and charges 123 513 123 513 109 747 I
Protective inspection
Personal services 67 068 58 459 8 609 56 761
Supplies 775 404 371 388 I
Other services and charges 26 175 22 742 3 433 26 767
Capital outlay 3 000 3 070 (70) 437
Total 97 018 84 675 12 343 84 353 I
Total public safety
669 420 650 703 18 717 618 047
Public works I
General maintenance
Personal services 130 110 164 346 (34 236) 138 849
Supplies 35 000 33 158 1 842 33 960
Other services and charges 19 050 15 144 3 906 15 764 I
Capital outlay 5 976
Total 184 160 212 648 (28 488) 194 549 I
Streets and roadways
Personal services 94 743 71 137 23 606 80 561
Supplies 30 000 26 309 3 691 30 663 I
Other services and charges 38 100 30 975 7 125 41 277
Total 162 843 128 421 34 422 152 501
Snow and ice removal I
Personal services 25 004 20 663 4 341 19 658
Supplies 14 000 16 995 (2 995) 13 551
Total 39 004 37 658 1 346 33 209 I
-31- Continued I
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I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - CONTINUED
I YEAR ENDED DECEMBER 31, 1995
(With comparative amounts for the year ended December 31, 1994)
I 1995 1994
Variance -
Favorable
Budqet Actual (Unfavorable) Actual
I EXPENDITURES - CONTINUED
Public works
Traffic control
Supplies $ 4 000 $ 2 071 $ 1 929 $ 2 469
I Other services and charges 31 200 33 405 (2 205) 31 992
Total 35 200 35 476 (276) 34 461
I Sanitation and waste removal
Personal services 614 621 (7 ) 579
Other services and charges 4 000 3 731 269 2 450
I Total 4 614 4 352 262 3 029
Tree maintenance
Personal services 7 530 887 6 643 3 004
I Supplies 12 250 13 317 (1 067) 12 946
Total 19 780 14 204 5 576 15 950
I Total public works 445 601 432 759 12 842 433 699
Parks and recreation
Personal services 82 477 73 595 8 882 82 837
I Supplies 19 150 19 709 (559) 19 006
Other services and charges 23 300 20 982 2 318 25 783
Capital outlay 1 250 1 160 90 974
I Total parks and
recreation 126 177 115 446 10 731 128 600
I TOTAL EXPENDITURES 1 986 760 1 922 006 64 754 1 935 443
EXCESS REVENUE (EXPENDITURES) 324 248 426 003 101 755 555 896
I OTHER FINANCING SOURCES (USES)
Operating transfers in so 000 30 000 (20 000) 40 000
Operating transfers out (404 225) (404 225) (601 500)
I TOTAL OTHER FINANCING
SOURCES (USES) (354 225) (374 225) (20 000) (561 500)
EXCESS REVENUE AND OTHER
I FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES $ (29 977) 51 778 $ 81 755 (5 604)
FUND BALANCE, JANUARY 1 1 497 678 1 503 282
I FUND EQUITY TRANSFERS OUT (5 108)
FUND BALANCE, DECEMBER 31 $1 544 348 $1 497 678
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
Debt service funq:s are ,used to account for the payment of interest and principal on long-
term general obligation debt other than debt issued for and serviced priIIl,arily by enterprise
funds.
1993 Improvement and Refundine Fund - This fund w~s established to account for
the accumulation of ~esources for payment of interestand principal onbqnds issued for. the
Season's developmeI\t imprqvements, and to refund the 1987 refunding bonds on the call
date.
Shorewood. Oaks Fund - This fund was, ~stablished to a,ccount for the accunlUI~tion of
r~sources for the payment of interest and principal on bonds.. issued for streer and utility
improvements in the SQorewood Oaks dev~lopment.
Waterford III Tax Increment Fund - This fund was established to accpunt fOJ;/the
accumulation of resources for paymentof interest and principal on bonds issued fur the
Warerford ill Ip.tersection Improvements.
Shady Hills.. Storm SewerlInprovement' Fund - This fund was established to
account for the accumulation of r((sources for payment of interest and . principal on bonds
issued for the Shady Hills ~torm St:(wer Improvements.
1991 Improvement and Refundine ~und - This fund Was established to account for
the accumulation of resources. for the payment of interest and principal on bonds issued for
the SE Watettreattnent plant, Pine Bend improvements, Church Road improvements, and
to refund the 1986 improvement bonds ohJhe call date.
CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1995
(With comparative totals as of December 31,1994)
ASSETS
Cash and investments
Receivables
Taxes
Accrued interest
Special assessments
Delinquent
Deferred
1993
Improvement
and
Refundinq Shorewood Oaks
$138 210 $843 ~80
2 998 28 343
3 755
153 794 8 955
$298 757 $ 880 478
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Deferred revenue
$ 550
8 955
TOTAL LIABILITIES
154 492
9 505
FUND BALANCE
Reserved for debt service
144 265
870 973
TOTAL LIABILITIES AND
FUND BALANCE
$ 298 757
$ 880 478
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Waterford
III Tax
Increment
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$ 19 872
2 162
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$ 22 210
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22 210
$ 22 210
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I Exhibit B-1
I 1991
Shady Hills Improvement
Storm Sewer and Total
I Improvement Refundinq 1995 1994
$ 5 681 $364 298 $1 371 241 $1 445 419
I 212 2 374 854
24 11 036 42 577 37 806
8 427 12 182 12 134
I 336 122 498 871 615 823
$ $719 $1 $2
5 917 883 927 245 112 036
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I $ $ $ 550 $
139 343 377 506 963 626 457
139 343 377 507 513 626 457
I 5 778 376 506 1 419 732 1 485 579
I $ 5 917 $719 883 $1 927 245 $2 112 036
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 3~, ~995
(With comparative totals for the year ended December 3~, ~994)
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TOTAL REVENUE
~993
Improvement Waterford
and III Tax
Refundinq Shorewood Oaks Increment
$ $ $ 22 548
80 997 ~3 3~9
6 277 40 471 293
87 274 53 790 22 84~
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REVENUE
General property taxes
Property tax credits
Special assessments
Interest on investments
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EXPENDITURES
Debt Service
Principal
Interest and service charges
40 000
~3 080
80 000
44 394
898
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TOTAL EXPENDITURES
53 080
~24 394
898
EXCESS REVENUE (EXPENDITURES)
34 ~94
(70 604)
2~ 943
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FUND BALANCE, JANUARY ~
~~o 071
94~ 577
267
FUND EQUITY TRANSFER IN
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FUND EQUITY TRANSFER OUT
FUND BALANCE, DECEMBER 3 ~
S~44 265
S 870 973
S 22 2~0
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I Exhibit B-2
I 1991
Shady Hills Improvement
I Storm Sewer and Total
Improvement Refundinq 1995 1994
$ 8 060 $ $ 30 608 $ 8 513
I 335 335 356
76 416 170 732 248 844
83 16 177 63 301 54 636
I 8 478 92 593 264 976 312 349
I 6 000 105 000 231 000 681 000
1 401 40 050 99 823 120 862
7 401 145 050 330 823 801 862
I 1 077 (52 457) (65 847) (489 513)
4 701 428 963 1 485 579 1 999 197
I 426 732
(450 837)
I $ 5 778 $376 506 $1 419 732 $1 485 579
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CITY OF SHOREWOOD1 MINNESOTA
CAPITALPROJ~CTS FUNDS
Capital projects funds are' used to account for the acquisition and construction of major capital
facilities other t~an those financed by enterprise funds.
Capital Improvements Fund - This /fund was established to account tOr various capitll
improvement projects which may be financed without the need to issue bonds. '
Park Capital Improvement /Fund - This fund accOlmts for park land acquisition and other
capital improvements in the City parks. '
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Equipment Replacement Fund - This fund was established for the purpose of funding the
replacement of capit~ equipment
Street ..Reconstruction I,., Fund - This fund was establi~hed for the purpose 'of funding the
periodic irecoflstruction of City streets and roadways. ,
MSA Construction " Fund ,- This fund was established to account for the a9C1;lmulation of
Municipal State Aid (MSA) to fund the periodic reCOllstl}1ction of MSA designated roads.
\. .... I,. '"..:' .. .. .... ..," ,/,.i .. ,.... .. : .,,' "')" ~,.: " I
Trail Capital Improvement Fund - Thi~/fund was established,to a~cdunt for trailextensioQs
and ilI}.pr6vements~ . ,.' / ,I .,..' . u /
1995 Manor Park Improvement /Fund - This fund was establishes! tg account for the
con~truction of imprqvements in Manor 'Park. '
1995 . Freeman. Park Improvement Fund - This fund was estaQIished to account for the
construction of improvements in Freeman Park. !,
Senior Community: Center Fund - This fund was established to accountlor the construction
of a Senior CommllWty Center. I
Silverwood Park Impr()vement Fund - This fund was e~tablished to ac<cpunt for the
construction of improvements in Silverwood Park. '
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City Hall Pal;kinl:' Lot Fund - This fund was established to account for the reconstruction of
the City Hall Parking Lot ' '
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Seasons' Improyements Fund - This fund was established to account for the construction of
street and u~i!ity improvelI}.ents for the Seasons Elderly Housi.ng,project
',' ,,' I "
Manor Park Warmina: House' Fund. - This fund was established Ito account for the
construction of a warming house in Manor Park. The fund was closed by an equity transfef to the
Park Capital Imppovement Fund in 1995.
Island Dry~ydrllnt Improvemeyt//Fund - This' fllnd was established to account; for the
constru,ction of dry fire hydrants o~ E~c~~te~ and Shady Islands. An equity transfer from the
General Fund to, cover a peficit effettively,closed tlUs fund in J995.
Vine Hill. Improvement . Fund - This funp was ,established to account for the (:ity' s Costs
associated with' ~e Minnesota Department 9f Transportation's improvrment of th~ intersection at
Vi~e Hill Road and Highway 7.,'
Old Market Road Trail Fund - This fund was created to account for the construction of a trail
along Old Mm;ket Road. I
Cathcart Park Improyements /Fund - This fund was established' to account for the
construction ofin:;Jprovementsin Cathcart Park. '
CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1995
(With comparative totals as of December 31, 1994)
ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Refundable deposits payable
Deferred revenue
Due to other funds
TOTAL LIABILITIES
FUND BALANCE (DEFICIT)
Jnreserved
Designated
Undesignated
TOTAL FUND BALANCE
(DEFICIT)
TOTAL LIABILITIES
AND FUND BALANCE
Capital
Imorovements
$ 76 252
2 992
684
1 066
1 951
$ 82 945
$
1 705
1 705
81 240
81 240
$ 82 945
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Park
Capital
Improvement
$ 81 369
6 082
5 910
$ 93 361
$
93 361
93 361
$ 93 361
Equipment
Replacement
$132 348
6 199
$138 547
$ 7 899
7 899
130 648
130 648
$138 547
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Street
Reconstruction I
$ 864 894
27 455
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58 732
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$ 951 081
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$ 19 013
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932 068
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932 068
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$ 951 081
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MSA
Construction
$13J. 319
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5 464
3 936
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$J.40 7J.9
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$ J. 046
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1 046
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J.39 673
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139 673
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$140 719
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Exhibit C-1
Continued
1995
Trail 1995 Freeman Senior Silverwood
Capital Manor Park Park Community Park
Improvements Improvement Improvement Center Gradinq
$ 46 927 $ $ 23 995 $ $ 1 J.77
2 174
44
J.8 924
$ 68 025
$
$ 24 039
$
$ 1 J. 77
$
$
$
$
$
25 J.50
5 910
J. 951
5 9J.0
27 J.01
68 025
24 039
J. J. 77
(5 910)
(27 101)
68 025
(5 910)
(27 J.01)
1 J.77
24 039
$ 68 025
$
$ 24 039
$
$ 1 177
-38-
Continued
CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET - CONTINUED
DECEMBER 31, 1995
comparative totals as of December 31, 1994)
(with
City Hall
Parking
Lot
ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
Due from other funds
$ 13 120
TOTAL ASSETS
$ 13 120
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Refundable deposits payable
Deferred revenue
Due to other funds
$ 13 682
TOTAL LIABILITIES
13 682
FUND BALANCE (DEFICIT)
Unreserved
Designated
Undesignated
(562)
TOTAL FUND BALANCE
(DEFICIT)
(562)
TOTAL LIABILITIES
AND FUND BALANCE
$ 13 120
-39-
Season
Improvements
Manor
Park
Warming
House
$
$
$
$
$ 473
$
58 732
59 205
(59 205)
(59 205)
$
$
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Island Dry
Hydrant
proiect
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$
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$
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$"
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31, 1995
(With comparative totals for the year ended December 31, 1994)
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Capital
Improvements
Park
Capital
Improvement
Equipment
Replacement
Street I
Reconstruction
REVENUE
Intergovernmental
Special assessments
Interest on investments
Other
Park dedication fees
Donations
Other
$
$ 16 000
$
$
6 517
3 108
10 344
9 943
44 141 I
20 250
528
3 728
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44 141
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TOTAL REVENUE
9 625
47 122
13 671
EXPENDITURES
Capital outlay
Personal services
Other services and charges
Professional services
Construction costs
Capital outlay
196 592
19 013 I
15 141
TOTAL EXPENDITURES
196 592
34 154
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EXCESS REVENUE (EXPENDITURES)
9 625
47 122
(182 921)
9 987
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
5 000
(20 000)
40 000
(143 000)
99 225
250 000
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TOTAL OTHER FINANCING
SOURCES (USES)
(15 000)
(103 000)
99 225
250 000
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EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER (USES)
I
(5 375)
(55 878)
(83 696)
259 987
FUND BALANCE (DEFICIT), JANUARY 1
86 615
147 898
214 344
672 081
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FUND EQUITY TRANSFER IN
1 341
FUND EQUITY TRANSFER OUT
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FUND BALANCE (DEFICIT), DECEMBER 31 $ 81 240
$ 93 361
$130 648
$ 932 068
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-41-
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
YEAR ENDED DECEMBER 31, 1995
(With comparative totals for the year ended December 31, 1994)
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City Hall
Parking
Lot
Season
Improvements
Manor
Park
Warming
House
Island Dry
Hydrant
Pro;ect
I
REVENUE
Intergovernmental
Special assessments
Interest on investments
Other
Park dedication fees
Donations
Other
$
50
$
$
$
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(436)
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TOTAL REVENUE
(386)
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EXPENDITURES
Capital outlay
Personal services
Other services and charges
Professional services
Construction costs
Capital outlay
1 023
n 830
473
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TOTAL EXPENDITURES
12 853
473
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EXCESS REVENUE (EXPENDITURES)
(13 239)
(473)
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
20 000
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TOTAL OTHER FINANCING
SOURCES (USES)
20 000
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EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER (USES)
6 761
(473)
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FUND BALANCE (DEFICIT), JANUARY 1
(7 323)
(58 732)
1 341
(5 108)
FUND EQUITY TRANSFER IN
5 108
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FUND BALANCE (DEFICIT), DECEMBER 31
$
(562)
(1 341)
$ (59 205) $ $
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FUND EQUITY TRANSFER OUT
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-43-
Continued
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated ~n a
manner similar to private business, where the cos/ts /of providing services to the general
public are financed primarily through user charges.
Water Fund - ThisfUnd is used to accountfor the activities of the City water sy~tem.
Sewet Fdnd - This fund is usedto account for t,he activities of the City sanitary sewer
system.
Recyclin~ Fund - This fund il' qsed to account f{)r the activities of the City recycling
program. .
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'. u./ ..... .,". ..... . I,
Stor!llwater . Mana~ement . Utility Fund - This fund is used to; account for the
activities of thy City StormwaterManagement system: I
Liquor Fund - This fund is used to aC50unt for the activiti~sof the City's off-sale liquor
operation. The operation qonsisted of thrlee ;.off.-sale liquor store sites in 1995. A store
which was closed temporarily in Ja.nuary, 1994 due to a 'State highway project was
. reopened in a di(ferent location in February, 1995. In addition, a store location,was added
'in December, 1994, jwhen the City assumed tj1e management of the Tonka Bay Liquor
Store. A portion of t~e net income generated by the operation is used to fund general fund
activities. '
CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1995
(With comparative totals as of December 31, 1994)
Water
Sewer
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Taxes
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
Due from other funds
Inventories, at cost
Prepaid items
$1 789 611 $ 878 824
502
37 996 181 414
19 806 26 164
13 051
746 588 34 342
3 774 3 128
TOTAL CURRENT ASSETS
2 598 277 1 136 923
PROPERTY AND EQUIPMENT, AT COST
LESS ACCUMULATED DEPRECIATION
3 798 669 7 465 289
(754 231) (3 933 596)
TOTAL PROPERTY AND EQUIPMENT
3 044 438
3 531 693
OTHER ASSETS
Bond discount, net of amortization
11 799
TOTAL ASSETS
$5 654 514
$4 668 616
LIABILITIES AND FUND EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Deferred revenue
Due to other funds
Current portion of long-term debt
$ 148 624
164
$ 1 444
59
7 593
15 000
TOTAL CURRENT LIABILITIES
163 788
9 096
LONG-TERM LIABILITIES
Bonds payable less current portion above
1 920 000
TOTAL LIABILITIES
2 083 788
9 096
FUND EQUITY
Contributed capital
Retained earnings (deficit) - unreserved
3 716 216 4 317 318
(145 490) 342 202
TOTAL FUND EQUITY
3 570 726
4 659 520
TOTAL LIABILITIES AND FUND EQUITY
$5 654 514 $4 668 616
-45-
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1995
(With comparative totals for the year ended December 31, 1994)
Water
OPERATING REVENUE
Sales
Less cost of sales
$
GROSS PROFIT
Charges for services
Permits and connection fees
190 100
8 466
GROSS PROFIT AND REVENUE
198 566
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
5 823
4 180
7 906
79 617
32 048
43 550
1 058
3 918
12 073
38 271
15 142
TOTAL OPERATING EXPENSES
243 586
OPERATING INCOME (LOSS)
(45 020)
NONOPERATING REVENUE (EXPENSES)
General property taxes
Interest on investments
Other income (expense)
Interest expense
17 506
36 397
8 112
(3 001)
TOTAL NONOPERATING REVENUE (EXPENSES)
59 014
INCOME (LOSS) BEFORE TRANSFERS
13 994
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME (LOSS)
13 994
RETAINED EARNINGS (DEFICIT), JANUARY 1
(159 484)
RESIDUAL EQUITY TRANSFER IN
RESIDUAL EQUITY TRANSFER OUT
RETAINED EARNINGS (DEFICIT), DECEMBER 31
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Sewer
$
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679 832
28 741
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708 573
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6 088
1 563
7 855
185 401
8 482
39 840
261
5 018
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4 252
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446 113
1 455
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706 328
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2 245
39 006
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39 006
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41 251
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41 251
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300 951
I
$(145 490) $ 342 202
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-47-
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1995
(With comparative totals for the year ended December 31, 1994)
Water
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
Due from other funds
Inventory
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
Due to other funds
$
(45 020)
8 112
79 932
62
1 063
(12 224)
8 067
(611)
142 907
154
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
182 442
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
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of property and equipment
Property taxes levied for debt service
Special assessments paid
Fund equity transfer in
Fund equity transfer out
Sewer
$ 2 245
185 401
5 628
(5 657)
(5 178)
1 265
(38 661)
49
7 593
152 685
1 908 250
(15 000)
(3 001)
(728 495) (1 166)
17 506
104 662
CASH FLOWS PROVIDED (USED) BY CAPITAL AND RELATED
FINANCING ACTIVITIES 1 283 922 (1 166)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 36 397 39 006
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1 502 761 190 525
CASH AND CASH EQUIVALENTS, JANUARY 1 286 850 688 299
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1 789 611 $878 824
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
$
-49-
$ 81 675
$ 81 675
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CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Taxes
Accounts
Accrued interest
Special assessments
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
-51-
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Exhibit D-4
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1995 1994
$1 789 611 $ 286 850
502 564
37 996 39 059
19 806 7 582
746 588 8 067
3 774 3 163
2 598 277 345 285
3 798 669 3 070 174
(754 231) (674 614)
3 044 438 2 395 560
11 799 364
$5 654 514 $2 741 209
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$ 148 624 $ 5 717
164 10
15 000 15 000
163 788 20 727
1 920 000 15 000
2 083 788 35 727
3 716 216 2 864 966
(145 490) (159 484)
3 570 726 2 705 482
$5 654 514 $2 741 209
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-5
WATER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED DEFICIT
YEARS ENDED DECEMBER 31, 1995 AND 1994
1995 1994
OPERATING REVENUE
Charges for services $ 190 100 $ 184 204
Permits and connection fees 8 466 78 688
TOTAL OPERATING REVENUE 198 566 262 892
OPERATING EXPENSES
Personal services 5 823 7 989
Supplies 4 180 5 027
Repairs and maintenance 7 906 10 379
Depreciation 79 617 77 040
Professional services 32 048 5 661
Contracted services 43 550 52 726
Communication 1 058 1 099
Insurance 3 918 4 269
Water purchases 12 073 16 913
Utilities 38 271 36 967
Other 15 142 18 149
TOTAL OPERATING EXPENSES 243 586 236 219
OPERATING INCOME (LOSS) (45 020) 26 673
OTHER REVENUE (EXPENSES)
General property taxes 17 506 18 689
Interest on investments 36 397 12 535
Other income 8 112 7 200
Interest expense (3 001) (4 035)
TOTAL OTHER REVENUE (EXPENSES) 59 014 34 389
INCOME (LOSS) BEFORE TRANSFERS 13 994 61 062
OPERATING TRANSFERS TO OTHER FUNDS (34 600)
NET INCOME (LOSS) 13 994 26 462
RETAINED DEFICIT, JANUARY 1 (159 484) (185 946)
RETAINED DEFICIT, DECEMBER 31 $ (145 490) $(159 484)
-52-
CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995 AND 1994
Exhibit D-6
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
1995 1994
$ (45 020) $ 26 673
8 112 7 200
79 932 77 040
62 (110)
1 063 (4 492)
(12 224) (3 457)
8 067 1 933
(611) 124
142 907 (1 066)
154 (115)
182 442 103 730
(34 600)
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
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of property and equipment
Property taxes levied for debt service
Special assessments paid
1 908 250
(15 000) (15 000)
(3 001) (4 035)
(728 495) (11 857)
17 506 18 689
104 662
1 283 922 (12 203)
36 397 12 535
1 502 761 69 462
286 850 217 388
$1 789 611 $286 850
CASH FLOWS PROVIDED (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
$
$108 356
-53-
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
Exhibit D-7
1995 1994
ASSETS
CURRENT ASSETS
Cash and investments $ 878 824 $ 688 299
Receivables
Accounts I 181 414 187 042
Accrued interest 26 164 20 507
Special assessments
Delinquent 13 051 12 081
Deferred 34 342 30 134
Prepaid items 3 128 4 393
TOTAL CURRENT ASSETS 1 136 923 942 456
PROPERTY AND EQUIPMENT, AT COST 7 465 289 7 382 448
LESS ACCUMULATED DEPRECIATION (3 933 596) (3 748 195)
TOTAL PROPERTY AND EQUIPMENT 3 531 693 3 634 253
TOTAL ASSETS $4 668 616 $4 576 709
LIABILITIES AND FUND EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts and contracts payable $ 1 444 $ 40 105
Salaries and compensated absences payable 59 10
Deferred revenue 7 593
TOTAL CURRENT LIABILITIES 9 096 40 115
FUND EQUITY
Contributed capital 4 317 318 4 235 643
Retained earnings - unreserved 342 202 300 951
TOTAL FUND EQUITY 4 659 520 4 536 594
TOTAL LIABILITIES AND FUND EQUITY $4 668 616 $4 576 709
-54-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-8
SEWER FUND I
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1995 AND 1994
1995
OPERATING REVENUE
Charges for services
Permits and connection fees
$ 679 832
28 741
TOTAL OPERATING REVENUE
708 573
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Utilities
MWCC charges
Other
6 088
1 563
7 855
185 401
8 482
39 840
261
5 018
4 252
446 113
1 455
TOTAL OPERATING EXPENSES
706 328
OPERATING INCOME (LOSS)
2 245
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other income
39 006
TOTAL NONOPERATING REVENUE (EXPENSES)
39 006
INCOME (LOSS) BEFORE OPERATING TRANSFERS
41 251
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME (LOSS)
41 251
RETAINED EARNINGS, JANUARY 1
300 951
RETAINED EARNINGS, DECEMBER 31
$ 342 202
-55-
1994
$ 668 530
75 824
744 354
10 413
1 234
9 595
183 500
23 709
56 220
202
4 899
4 152
730 268
17 304
1 041 496
(297 142)
30 425
30 351
60 776
(236 366)
(6 000)
(242 366)
543 317
$ 300 951
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995 AND 1994
I
I
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
(Increase) decrease in assets -
Accounts
Accrued interest
Special assessments
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
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CASH FLOWS PROVIDED (USED) BY OPERATING
ACTIVITIES
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CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfer to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition of property and equipment
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CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
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CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
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NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
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-56-
1995
$ 2 245
185 401
5 628
(5 657)
(5 178)
1 265
(38 661)
49
7 593
152 685
(1 166)
39 006
190 525
688 299
$ 878 824
$ 81 675
Exhibit D-9
1994
$(297 142)
30 351
183 500
(32 424)
(5 606)
(1 546)
(373)
5 648
(152)
(117 744)
(6 000)
30 425
(93 319)
781 618
$ 688 299
$ 98 108
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
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
-57-
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Exhibit D-10
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1995 1994
$ 19 383 $ 30 813
1 971 16 338
1 006 945
247 201
462 518
$ 23 069 $ 48 815
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$
$ 4 370
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23 069
44 445
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$ 23 069
$ 48 815
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-11
RECYCLING FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1995 AND 1994
1995 1994
OPERATING REVENUE
Charges for services $ 46 883 $ 67 605
OPERATING EXPENSES
Personal services 924 673
Supplies 369
Contracted services 68 810 68 002
Other 1 160
TOTAL OPERATING EXPENSES 69 734 70 204
OPERATING LOSS (22 851) (2 599)
NONOPERATING REVENUE (EXPENSES)
Interest on investments 1 475 1 767
NET. LOSS (21 376) (832)
RETAINED EARNINGS, JANUARY 1 44 445 45 277
RETAINED EARNINGS, DECEMBER 31 $ 23 069 $ 44 445
-58-
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995 AND 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating loss
to net cash used by operating activities:
(Increase) decrease in assets -
Accounts
Accrued interest
Special assessments
Increase (decrease) in liabilities -
Accounts payable
CASH FLOWS USED BY OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
-59-
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Exhibit D-12
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1995
1994
$(22 851)
I
$ (2 599)
14 367 (238)
(61) (602)
10 (71)
(4 370) 402
(12 90S) (3 108)
1 475 1 767
(11 430) (1 341)
30 813 32 154
$ 19 383 $ 30 813
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ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Special assessments
Delinquent
Deferred
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TOTAL ASSETS
CITY OF SHOREWOOD, MINNESOTA
STORMWATER MANAGEMENT UTILITY FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
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LIABILITIES AND RETAINED EARNINGS
LIABILITIES
Accounts and contracts payable
Salaries payable
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TOTAL CURRENT LIABILITIES
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FUND EQUITY
Retained earnings
TOTAL LIABILITIES AND RETAINED EARNINGS
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-60-
Exhibit D-13
1995 1994
$ 98 249 $ 57 194
11 974 13 326
2 775 1 567
403 122
1 519 1 069
$114 920 $ 73 278
$ 13 625
45
$
13 670
101 250
73 278
$114 920
$ 73 278
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, 1995 AND 1994
1995 1994
OPERATING REVENUE
Charges for services $ 44 336 $ 44 065
OPERATING EXPENSES
Personal services 10 548 1 622
Supplies 6 109
Repair and maintenance 729
Professional services 2 819
Contracted services 13 625 17 347
TOTAL OPERATING EXPENSES 31 011 21 788
OPERATING INCOME 13 325 22 277
NONOPERATING REVENUE
Interest on investments 4 647 3 112
INCOME BEFORE OPERATING TRANSFERS 17 972 25 389
OPERATING TRANSFERS FROM OTHER FUNDS 10 000 10 000
NET INCOME 27 972 35 389
RETAINED EARNINGS, JANUARY 1 73 278 37 889
RETAINED EARNINGS, DECEMBER 31 $101 250 $ 73 278
-61-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-15
STORMWATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995 AND 1994
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1995 1994
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CASH FLOWS FROM OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities:
(Increase) decrease in assets -
Accounts
Accrued interest
Special assessments
Increase (decrease) in liabilities -
Accounts payable
Salaries payable
$ 13 325
$ 22 277
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1 352
(1 208)
(731)
(1 123)
(1 338)
(582)
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13 625
45
(63)
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
26 408
19 171
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CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds
10 000
10 000
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CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
4 647
3 112
INCREASE IN CASH AND CASH EQUIVALENTS
41 055
32 283
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CASH AND CASH EQUIVALENTS, JANUARY 1
57 194
24 911
CASH AND CASH EQUIVALENTS, DECEMBER 31
$ 98 249
$ 57 194
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-62-
CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
Tonka Bay
1995 1994
ASSETS
CURRENT ASSETS
Cash and investments
Accrued interest receivable
Due from other funds
Inventories, at cost
Prepaid items
$ 61 490
2 867
42 351
2 594
TOTAL CURRENT ASSETS
109 302
PROPERTY AND EQUIPMENT, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL PROPERTY AND EQUIPMENT
TOTAL ASSETS
$109 302
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences
payable
Due to other funds
$ 19 980
1 026
TOTAL CURRENT LIABILITIES
21 006
RETAINED EARNINGS
Unreserved
88 296
TOTAL LIABILITIES AND
RETAINED EARNINGS
$109 302
-63-
$229 885
6 825
47 063
283 773
$283 773
$ 48 346
1 024
49 370
234 403
$283 773
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Exhibit D-16
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Store I
1995 1994
I
$
1 483
98 981
3 667
104 131
75 513
(7 055)
68 458
$172 589
$ 25 428
1 438
34 411
61 277
111 312
$172 589
$
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CITY OF SHOREWOOD, MINNESOTA Exhibi t D-17 I
LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1995 AND 1994
Tonka Bay
1995 1994
OPERATING REVENUE
Sales
Less cost of sales
$439 104
(345 540)
$ 25 073
(19 187)
GROSS PROFIT
93 564
5 886
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional services
Contracted services
Insurance
Utilities
Rent
Advertising
Other
57 128
1 050
2 865
1 011
1 440
3 676
7 592
13 258
2 606
2 421
655
567
TOTAL OPERATING EXPENSES
4 087
90 182
OPERATING INCOME (LOSS)
3 382
1 799
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other income (expense)
509
2
TOTAL NONOPERATING REVENUE
(EXPENSES)
511
INCOME (LOSS) BEFORE
TRANSFERS
3 893
1 799
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
(150 000)
(146 107)
1 799
NET INCOME (LOSS)
RETAINED EARNINGS, JANUARY 1
234 403
FUND EQUITY TRANSFER IN
232 604
FUND EQUITY TRANSFER OUT
RETAINED EARNINGS, DECEMBER 31
$ 88 296
$234 403
-65-
Store I
1995 1994
$373 862
(294 916)
78 946
59 233
2 828
7 055
40
583
3 185
8 973
48 821
3 396
3 534
137 648
(58 702)
14
14
(58 688)
170 000
111 312
$111 312
$ 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
42 767
(16 000)
26 767
205 837
(232 604)
$
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995 AND 1994
Tonka Bav
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 3 382 $ 1 799
Other income (expense) related to
operations 2
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation
(Increase) decrease in assets -
Accrued interest 3 958 (6 825)
Due from other funds
Inventory 4 712 (47 063)
Prepaid items (2 594)
Increase (decrease) in liabilities -
Accounts payable (28 366) 48 346
Salaries and compensated absences
payable 2 1 024
Due to other funds
CASH FLOWS PROVIDED (USED) BY
OPERATING ACTIVITIES
(18 904)
(2 719)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Operating transfers from other funds
Operating transfers to other funds
(150 000)
CASH FLOWS PROVIDED (USED) BY
NONCAPITAL FINANCING
ACTIVITIES
(150 000)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Fund equity transfer in
Fund equity transfer out
Acquisition of property and equipment
232 604
CASH FLOWS PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES
232 604
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
509
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(168 395)
229 885
CASH AND CASH EQUIVALENTS, JANUARY 1
229 885
CASH AND CASH EQUIVALENTS, DECEMBER 31
$ 61 490
$229 885
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Disposal of property and equipment
$
$
-67-
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Exhibit D-18
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Store I
1995 1994
I
$(58 702)
7 055
(1 483)
(98 981)
(3 667)
25 428
1 438
34 411
(94 501)
170 000
170 000
(75 513)
(75 513)
$
$
$ (8 983)
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40 420
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3 756
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35 780
2 612
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(35 145)
(954)
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37 486
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(16 000)
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(16 000)
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(232 604)
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(232 604)
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14
11 330
(199 788)
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199 788
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$
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$(24 917)
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I Store II
1995 1994
I $ 13 896 $ (6 345)
29 420
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2 510 1 356
I 1 173 (747)
(34 411)
(9 763) 6 764
I 1 304 1 424
2 204 (10 694)
I (439) 78
I (23 497) (7 744)
I (50 000) (24 000)
I (50 000) (24 000)
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I (362) (12 127)
I (362) (12 127)
2 317 5 382
I (71 542) (38 489)
I 105 202 143 691
$ 33 660 $105 202
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I $ $
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CITY OF SHOREWOQD, 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 payroll
deferments and the related liability , that are deposited with outside companie~ in accordance
with the provisions of Internal Revenue Code Section 457.
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CITY OF SHOREWOOD, MINNESOTA
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 1995
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ASSETS
Investments for deferred
compensation plan, at market
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LIABILITIES
Deferred compensation funds
held for participants
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Balance
Januarv 1
$128 979
$128 979
-69-
Additions
$ 58 430
$ 58 430
Deductions
$
$
Exhibit E-1
Balance
December 31
$187 409
$187 409
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT (;ROUP
General fixed assets are those fixed assets of a governmental jurisdiction which are not
accounted for in all en~erprise fund. To be classified as a fixed asset in this category, a
specific piece of property must meet three attribute~:
1 . Tallgible nature
2/0 A life longer than the current fiscal year
3. A significant value
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CITY OF SHOREWOOD, MINNESOTA Exhibit F-l
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31, 1995 AND 1994
1995 1994
GENERAL FIXED ASSETS
Land $ 456 826 $ 456 826
Buildings and structures 1 322 073 1 327 073
Improvements other than buildings 1 268 345 1 158 271
Furniture and equipment 1 076 774 952 465
TOTAL GENERAL FIXED ASSETS $4 124 018 $3 894 635
INVESTMENT IN GENERAL FIXED ASSETS
General fund $1 076 774 $ 952 465
Capital projects funds 3 047 244 2 942 170
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $4 124 018 $3 894 635
-70-
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CITY OF SHOREWOOD, MINNESOTA Exhibit F-2
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31, 1995
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Buildings Improvements Furniture
and Other Than and
Total Land Structures Buildinqs Eauioment
FUNCTION
General government $ 664 938 $ $ 305 372 $ 160 086 $ 199 480
Public works 2 135 077 153 500 919 581 184 702 877 294
Parks 1 324 003 303 326 97 120 923 557
TOTAL GENERAL
FIXED ASSETS $4 124 018 $456 826 $1 322 073 $1 268 345 $1 076 774
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CITY OF SHOREWOOD, MINNESOTA Exhibit F-3
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31, 1995
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General
Fixed Assets
January 1 Additions Deductions
General
Fixed Assets
December 31
General government
$ 662 200 $ 20 850 $ 18 112
$ 664 938
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Public works
2 000 653 289 523 155 099
2 135 077
Parks
1 231 782 97 221 5 000
1 324 003
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TOTAL GENERAL
FIXED ASSETS
$3 894 635 $407 594 $178 211
$4 124 018
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CITY OF SHOREWOOD, MINNESOTA
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GENERAL LONG-TERM DEBT ACCOUNT GROU~
General obligation bbnds and other forms oflong-term debt supported by general revenues
are obligations of a governmental unit as a ;whole and not its individual constituent. funds.
The 'amount of unmatured long-term indebtedness which is backed by the full" faith and
credit of the government (excluding enterprise fund debt) is recorded and accounted for in a
separate! self-balancing accoUI~t group titled the "General Long"::'I:erm Debt Account Group."
Also, this debt group includes certain liabilities not expected)to be liquidated with
expendabl~ available financial resources.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 31, 1995 AND 1994
Exhibit G-1
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1995
1994
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AMOUNT AVAILABLE FOR DEBT SERVICE
Debt service funds
$1 419 732 $1 485 579
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AMOUNTS TO BE PROVIDED
Future tax levies, assessments and tax increments
1 111 631 1 275 755
TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED
$ 2 531 363 $ 2 761 334
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GENERAL LONG-TERM DEBT PAYABLE
Compensated absences payable $ 21 863 $ 20 834
General obligation special assessment bonds 1 589 500 1 820 500
Tax increment revenue bonds 920 000 920 000
TOTAL GENERAL LONG-TERM DEBT PAYABLE $2 531 363 $2 761 334
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-73-
CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31, 1995
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SPECIAL ASSESSMENT BONDS
G.O. Improvement bonds of 1989
G.O. Improvement bonds of 1991
G.O. Improvement bonds of 1991
G.O. Improvement bonds of 1993
Final
Interest Issue Maturity
Rates Date Date
6.25-6.50 10/1/89 2/1/03
5.10-5.85 11/1/91 2/1/02
8.00 9/1/91 2/1/97
3.50-4.45 12/1/93 2/1/04
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TOTAL
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TAX INCREMENT REVENUE BONDS
Tax increment revenue bonds of 1991
9.00
5/1/91
2/1/00
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REVENUE BONDS
G.O. Water Revenue bonds
G.O. Water Revenue bonds
8.50
3.90-5.50
9/1/80
11/1/95
9/1/96
2/1/11
TOTAL
TOTAL
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS
DECEMBER 31, 1995
Total G.O. Bonds
Year Principal Interest
1996 $ 426 000 $ 685 242
1997 531 500 225 898
1998 529 000 192 355
1999 524 000 158 634
2000 519 000 124 728
2001 330 000 90 729
2002 315 000 73 480
2003 225 000 59 031
2004 150 000 49 533
2005 125 000 42 965
2006 130 000 36 780
2007 130 000 30 345
2008 125 000 23 907
2009 130 000 17 308
2010 130 000 10 385
2011 125 000 3 438
Total $4 444 500 $1 824 758
*
Tax increment collections will be remitted to the bond holders and payments will be
applied first to accrued interest.
-76-
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Exhibit I-I
G.O.
Special Assessment Tax Increment G.O. Water
Bonds Revenue Bonds* Revenue Bonds
Principal Interest Principal Interest Principal Interest
$ 227 000 $ 83 505 $ 184 000 $532 482 $ 15 000 $ 69 255
222 500 71 455 184 000 66 240 125 000 88 203
215 000 59 510 184 000 49 680 130 000 83 165
215 000 47 543 184 000 33 120 125 000 77 971
205 000 35 650 184 000 16 560 130 000 72 518
200 000 23 964 130 000 66 765
190 000 12 451 125 000 61 029
95 000 3 868 130 000 55 163
20 000 480 130 000 49 053
125 000 42 965
130 000 36 780
130 000 30 345
125 000 23 907
130 000 17 308
130 000 10 385
125 000 3 438
$1 589 500 $338 426 $920 000 $698 082 $1 935 000 $788 250
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CITY OF SH(OREWOOD, MINNESOTA
SECTION III
/
STATISTICAL SECTION
~./
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Table 1
Fiscal Total General Public Public Parks and Misc/
Year Expenditures Government Safety Works Recreation Transfers
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
1995 2 326 231 723 098 650 703 432 759 115 446 404 225
-78-
CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE
LAST TEN FISCAL YEARS
Table 2
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Total General Licenses
Fiscal General Fund Property and Inter-
Year Revenues Taxes Permits Governmental Fines Miscellaneous
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
1995 2 378 009 1 489 822 184 857 440 720 68 765 193 845
-79-
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CITY OF SHOREWOOD, MINNESOTA Table 3
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1)
Collection Collection Percentage
of Current Percentage of Prior of Total
Fiscal Total Year's of Levy Year's Total Collections
Year LeVY LeVY Collected Levy Collections to LeVY
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
1995 1 518 108 1 501 389 98.90 13 999 1 515 388 99.82
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(1)
Includes state paid property tax credits
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*
Includes $66,971 state aid reduction from the Homestead and Agricultural Credit
Aid.
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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.
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CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALUATION, TAX LEVIES AND MILL RATES
(shown by year of tax collectibility)
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Taxable valuation/
Total tax capacity
1995 1994 1993 1992
(1) & (2) (1) & (2) (1) & (2) (1) & (2 )
$8 045 468 $7 396 104 $7 092 917 $7 681 118
(185 232) (205 973) (227 686) (212 697)
310 337 375 309 396 081 390 694
(22 195) (317)
$8 148 378 $7 565 123 $7 261 312 $7 859 115
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Assessed valuation/
Tax capacity
Contribution to fiscal
disparities pool
Receivable from fiscal
disparities pool
Tax increment
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$1 491 990
26 118
(3)
$1 491 888
26 847
$1 909 253
23 201
$1 840 663
23 914
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Tax levies
General
Debt service
Total
$1 518 108
$1 518 735
$1 932 454
$1 864 577
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Mill rates/Tax
Capacity Rate
General
Debt service
18.256 Rate
.215
19.655 Rate
.249
20.638 Rate
.159
19.995 Rate
.169
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Total
18.471 Rate
19.904 Rate
20.797 Rate
20.164 Rate
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(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. 1986-1988
information is stated in terms of assessed valuation and mill rates. 1989-1995
information is stated in terms of tax capacity and tax capacity rates.
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(2) The debt service levy includes $8,568 for 1995, $8,022 for 1994, $8,526 for 1993
and $8,414 for 1992, 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.
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(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.
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Table 4
1991 1990 1989 1988 1987 1986
(1)
$7 909 001 $7 033 863 $7 705 314 $55 691 698 $52 274 820 $50 700 422
(227 257) (209 164) (218 604) (1 699 452) (1 457 783) (1 420 050)
388 595 372 707 347 288 2 597 611 2 242 637 1 934 251
$8 070 339 $7 197 406 $7 833 998 $56 589 857 $53 059 674 $51 214 623
$1 840 663 $1 667 451 $1 282 956 $ 1 274 189 $ 1 172 220 $ 1 126 436
16 325 17 125 17 925 19 500 82 200 82 825
$1 856 988 $1 684 576 $1 300 881 $ 1 293 689 $ 1 254 420 $ 1 209 261
20.274 Rate 20.093 Rate 16.282 Rate 22.481 Mills 22.093 Mills 22.020 Mills
.180 .206 .227 .344 1.550 1.620
20.454 Rate 20.299 Rate 16.509 Rate 22.825 Mills 23.643 Mills 23.640 Mills
-82-
CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX MILL RATES/TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF ASSESSED VALUE FOR YEARS 1986-1988
AND TAX CAPACITY IN 1989 - 1995)
(1) (1)
Year School School Watershed Watershed
Taxes District District District District
Payable City County No. 276 No. 277 No. 3 No. 4 Misc.
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
1995 18.471 (2) 37.454 76.139 66.441 2.332 .762 5.847
(1) Includes vocational school
(2) Information for 1989-1995 is stated in terms of tax capacity rates due to
1988 legislative changes as explained in Table 4.
-83-
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Table 5
Totals
School School School District School
District District No. 276, Distr:lct
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
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
15.353 140.243 138.673 154.026 130.545
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-84-
CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL TAXPAYERS
DECEMBER 31, 1995
Taxpayer
Northern States Power Company
Ryan Construction Company
Minnetonka Country Club
Minnegasco
Two S Properties
Shorewood Yacht Club
Individual
Individual
Fina Serve, Inc.
Individual
Total
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Table 6
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Percentage
1995 Tax of Total
TYPe of Business Capacity Tax Capacity
Utility $119 011 1.46%
Shopping Center 75 118 .92
Country Club 65 689 .81
Utility 61 778 .76
Commercial 41 663 .51
Yacht Club 29 413 .36
Residential 27 366 .34
Residential 22 764 .28
Commercial 22 380 .27
Residential 22 336 ~
$487 518 5.98%
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-85-
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CITY OF SHOREWOOD, MINNESOTA Table 7
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collection
of Collection Percentage
CUrrent Percentage of Prior of Total
Total Year's of Levy Year's Total Collections
Year Levy LeVY Collected Levy Collections To LeVY
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
1995 170 157 159 018 93.45 12 896 171 914 101.03
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-86-
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1995
Table 8
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$460 242 800
$ 9 204 856
Market Value
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Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
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Total Bonded Debt $ 4 444 500
Less: (Note B)
Special Assessment Bonds (1 575 000)
General Obligation Water Revenue Bonds (1 935 000)
General Obligation Storm Sewer Bonds (14 500)
Tax Increment Revenue Bonds (920 000)
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Total Debt Applicable to Debt Limit
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$ 9 204 856
Legal Debt Margin
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Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75,
no municipality, except a school district or a city of the first class, shall incur or be
subject to a net debt in excess of 2.0 percent of the market value of taxable property in
the municipality."
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Note (B): M.S.A. Section 162.18 (Bond; Municipal State Aid)
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"Subdivision 2. Not included in net debt of municipality for purpose of any statutory or
charter limitation. Obligations issued here under may be authorized by resolution of the
governing body without authorization by the electors, and shall not be included in the
net debt of the municipality for the purpose of any statutory or charter limitation on
indebtedness."
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M.S.A. Section 475.51 (Definitions:)
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"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross
debt the aggregate of the principal of the following:
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(1) Obligations issued for improvements which are payable wholly or partly from the
proceeds of special assessments levied upon property specially benefited
thereby, including those which are general obligations of the municipality
issuing them, if the municipality is entitled to reimbursement in whole or in
part from the proceeds of the special assessments.
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(2)
(3)
(4)
(5)
Warrants or orders having no definite or fixed maturity.
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Obligations payable wholly from the income from revenue-producing conveniences.
Obligations issued to create or maintain a permanent improvement revolving fund.
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Obligations issued for the acquisition and betterment of public water works
systems, and public lighting, heating or power systems and of any combination
thereof, or for any other public convenience from which a revenue is or may be
derived.
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(6)
Amount of all money and the face value of all securities held as a sinking fund
for the extinguishment of obligations other than those deductible under this
subdivision.
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(7)
All other obligations, which under the provisions of the law authorizing their
issuance, are not to be included in computing the net debt of the municipality."
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*
After contribution and distribution from "fiscal disparity" legislation;
Minnesota laws 1971, Extra Session, Chapter 24.
-87-
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CITY OF SHOREWOOD, MINNESOTA
RATIO OF NET BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Table 9
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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
1986 4788 $51 214 623 $4 500 000 $3 054 867 $1 445 133 .0282:1 301. 82
1987 4921 53 059 674 4 975 000 2 044 326 2 930 674 .0552:1 595.54
1988 5094 56 589 857 4 530 000 2 688 009 1 841 991 .0325:1 361. 60
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1989 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
1995 6614 8 148 378 3 524 500 1 419 732 2 104 768 .2583:1 318.17
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(1)
AS a result of 1989 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. 1986-1988
information is stated in terms of assessed valuation and mill rates. 1989-1995
information is stated in terms of tax capacity and tax capacity rates.
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(2)
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.
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-88-
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CITY OF SHOREWOOD, MINNESOTA Table 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES*
Percent of
Debt Service
Fiscal Total Total General to General
Year Principal Interest Debt Service Expenditures * Expenditures
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
1995 231 000 99 823 330 823 2 326 231 14.22
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(1) Excludes G.O. Bonds reported in Enterprise Funds
(2) Principal includes bonds refunded in 1987
(3) Principal included bonds defeased in 1989
(4) Principal includes bonds called in 1994
* Includes General Fund only
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-89-
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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
wi th Table 9.
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Direct Debt*
City of Shorewood
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Overlapping Debt
Hennepin County
Hennepin Suburban
Park District
School District #276
School District #277
Vo-Tech District #287
Metropolitan Council
Metropolitan Transit
Commission
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Total Over-
lapping Debt
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Total Direct and
Overlapping
Debt
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 1995
Table 11
City of
Percent of Shorewood
Net Debt Debt Applicable Share
Total Debt Outstandinq to City of Debt
$ 3 524 500 $ 2 104 768 100.00% $2 104 768
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
$159 862 667
$6 968 412
3.31%
-90-
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net Ratio of Net
Fiscal Gross (1) Revenue Debt Service Revenue to
Year Revenue Expenses Available Principal Interest Total Debt Service
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
1995 198 566 166 970 31 596 15 000 3 486 18 486 1.710 to 1
(1) Excluding depreciation and interest on bonds
-91-
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(1) (1)
Commercial Residential
Construction Construction
Number
Fiscal of
Year Value Units Value
1986 $ 85 686 80 $15 779 286
1987 163 23 397 136
1988 401 004 157 29 040 667
1989 89 16 949 136
1990 20 000 82 16 252 990
1991 69 14 044 120
1992 55 10 899 687
1993 102 17 941 776
1994 960 000 86 16 530 925
1995 2 030 000 40 10 167 210
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(1) City Planning and Inspection Department
(2) County Assessor's Office
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Sources
Bank deposits are not shown as no banks are located within the City limits.
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Table 13
{2}
Property Value
Commercial Residential Total
$ 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
9 793 000 453 616 100 463 409 100
-93-
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CITY OF SHOREWOOD, MINNESOTA
MISCELLANEOUS STATISTICS
DECEMBER 31, 1995
Year of incorporation
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Form of government
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Fiscal year begins
Area of city
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Population
1995 Estimated
1990 Census
1980 Census
1970 Census
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Miles of streets and alleys
City streets
Municipal state aid streets
County roads
State highway
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Sewer
Lift stations
Sewer rates - residential
Miles of sewer lines
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Number of street lights
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Building permits issued in 1995
Number of permits
Value
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Fire protection
Contracted services with Mound and Excelsior
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Police protection
Contracted services with South Lake Minnetonka
Police Department
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Parks
Number
Acres
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Water
Number of connections
Average daily consumption
Miles of watermain
Daily capacity
Number of fire hydrants
Water rate per thousand gallons
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Employees
Regular
Part-time/seasonal
Total
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Elections
Registered voters last election
Number of votes cast last election
Percentage of registered voters voting
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-94-
Table 14
1956
council-Administrator
Adopted May 14, 1956
January 1
6.0 Square Miles
6,614
5,917
4,646
4,223
38.1
9.3
1.7
2.7
19
$65.00/quarter
55.7
174
643
$16,991,398
5
95.8
940
267,800 gallons
14.7
4,680,000 gallons
165
$1.45/1000 gallons
20
20
40
4,942
3,260
66.0%