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1996 - Comp. Annual Financial Report AffX) .~ CERTIFIED PUBLIC ACCX)UNTANTS ANO Q)NSULTANTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the general purpose [mancial statements of the City of Shorewood, Minnesota as of and for the year ended December 31, 1996 and have issued our report thereon dated March 13, 1997. 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 [mancial statements are free of material misstatement. The management of the City is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose [mancial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In plarming and performing our audit of the general purpose [mancial statements of the City for the year ended December 31, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose [mancial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City's ability to record, process, summarize and report [mancial data consistent with the assertions of management in the general purpose financial statements. Page Two APIX) ~ CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS Our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. A good internal control structure contemplates an adequate segregation of duties so that no one individual handles transaction from inception to completion. While we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important, however, that you be aware of this reportable condition. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defmed above. However, we believe the reportable condition described above is not a material weaknesses. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City in a separate letter dated March 13, 1997. This report is intended for the information of the City Council, management and the Office of the State Auditor. However, this report is a matter of public record and its distribution is not limited. add, ado , f- ~ March 13, 1997 Minneapolis, Minnesota ABDO, ABDO & EICK Certified Public Accountants Al?lX) .~ CERTIFIED PlIlll\C AO:.:OllNTANTS AND G,S5ULTANTS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the general purpose [mancial statements of the City of Shorewood, Minnesota as of and for the year ended December 31, 1996 and have issued our report thereon dated March 13, 1997. 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. Compliance with laws, regulations, contracts and grants applicable to the City is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose [mancial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our audit of the general purpose [mandaI statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance that are required to be reported under Government Auditing Standards. This report is intended for the information of the City Council, management and the Office of the State Auditor. However, this report is a matter of public record and its distribution is not limited. adl cUIo I r~ March 13, 1997 Minneapolis, Minnesota ABDO, ABDO & EICK Certified Public Accountants AE[() ~ CERTIFIED PURLlC A(XDUNTANTS AND CcNSULTANTS INDEPENDENT AUDITOR'S REPORT ON LEGAL COMPLIANCE Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the general purpose [mandaI statements of the City of Shorewood, Minnesota as of and for the year ended December 31, 1996, and have issued our report thereon dated March 13, 1997. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute S 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions. ' This report is intended solely for the use of the City Council, management and the Office of the State Auditor and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. March 13, 1997 Minneapolis, Minnesota 0U01 ado ~ ~ ABDO, ABDO & EICK Certified Public Accountants MAYOR Tom Dahlberg t(Q)[P'f COUNCIL Kristi Stover Jennifer McCarty Jerry O'Neill John Garfunkel CITY OF SHOREWOOD 5755 COUNTRY CLUB,ROAD - SHOREWOOD, MINNESOTA 55331-8927- (612) 474-3236. FAX (612) 474-0128' www.state.netlshorewood' cityhall@shorewood.state.net MEMO TO: FROM: DATE: RE: Councilmember Jerry O'Neill AI Rolek M May 15, 1997 Questions on Audit Report - Enterprise Fund Other Expenses In regard to your questions at the last City Council meeting, the following is a detailed; breakdown of the Other Expenses category in the Enterprise Fund section of the audit report: Operating Expenses - Other Water Meter Purchases Licenses and Sales Taxes State Surcharges Miscellaneous Services Bank Service Charges Credit Card Service Charges Bad Debts Licensestraxes Dues/Subscriptions Total Water 23,912 1,901 5,043 317 Sewer Recycling Liquor 187 110 1,016 20 31,173 1,203 130 7,894 2,615 920 396 11,825 cc: Mayor Tom Dahlberg Councilmembers Kristi Stover, Jennifer McCarty, John Garfunkel City Administrator James Hurm A Residential Community on Lake Minnetonka's South Shore I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1996 JAMES C. HURM, CITY ADMINISTRATOR REPORT PREPARED BY: DEPARTMENT OF FINANCE ALAN J. ROLEK, FINANCE DIRECTORITREASURER MEMBER OF. GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1996 Exhibit Page No. L INTRODUCTORY SECTION Elected and Appointed Officials Organizational Chart Letter of Transmittal I - VII Certificate of Achievement for Excellence in Financial Reporting II. FINANCIAL SECTION Independent Auditor's Report General PUI:pose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 2-3 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types 2 4-5 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 3 6 Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 4 7 Combined Statement of Cash Flows - All Proprietary Fund Types 5 8 Notes to Financial Statements 9 - 23 Combining and Individual Fund and Account Group Financial Statements and Schedules General Fund Comparative Balance Sheets A-I 24 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual A-2 25 - 29 Debt Service Funds Combining Balance Sheet B-1 30 - 31 Combining Statement of Revenue, Expenditures and Changes in Fund Balance B-2 32 - 33 Capital Projects Funds Combining Balance Sheet C-l 34 - 37 Combining Statement of Revenue, Expenditures and Changes in Fund Balance C-2 38 - 41 Enterprise Funds Combining Balance Sheet D-l 42 - 43 Combining Statement of Revenue, Expenses and Changes in Retained Earnings D-2 44 - 45 Combining Statement of Cash Flows D-3 46 - 47 Water Fund Comparative Balance Sheets D-4 48 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings (Deficit) D-5 49 Comparative Statements of Cash Flows D-6 50 Sewer Fund Comparative Balance Sheets D-7 51 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D-8 52 Comparative Statements of Cash Flows D-9 53 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1996 Recycling Fund Comparative Balance Sheet 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 Combining Balance Sheet Combining Schedules of Revenue, Expenses and Changes in Retained Earnings Combining Schedules of Cash Flows Agency Fund 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 Ratesffax 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 Exhibit Page No. D-to 54 D-11 55 D-12 56 D-13 57 D-14 58 D-15 59 D-16 60 D-17 61 D-18 62 D-19 63 - 64 D-20 65 - 66 D-21 67 - 68 E-l 69 F-1 70 F-2 71 F-3 72 G-1 73 H-l 74 - 75 I-I 76 - 77 1 78 2 79 3 80 4 81 - 82 5 83 - 84 6 85 7 86 8 87 9 88 10 89 11 90 12 91 13 92 - 93 14 94 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION I INTRODUCTORY SECTION I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1996 Elected Officials Term Expires Robert Bean Bruce Benson Kristi Stover Jennifer McCarty Frank (Tad) Shaw Mayor Council Member Council Member Council Member Council Member 1996 1996 1996 1998 1996 Appointed Officials James C. Hurm Alan 1. Rolek City Administrator Finance Directorffreasurer ------------------- ORGANIZATIONAL CHART - CITY OF SHOREWOOD I VOTERS I I CITY ATTORNEY ~ ~ - - " CITY COUNCIL BOARDS & COMMISSIONS - PLANNING COMMISSION - PARK COMMISSION - SNOWMOBILE TASK FORCE CITY ADMINISTRATOR I I I I I I I I LIQUOR ENGINEERING FINANCE ADMINISTRA TION 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 * Mayor is City's representative on joint governing board. December, 1996 I I MAYOR Tom Dahlberg I I CITY OF SHOREWOOD COUNCIL Kristi Stover Jennifer McCarty Jerry O'Neill John Garfunkel 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (612) 474-3236 FAX .(612) 474:0128. www.state.net/shorewood. cityhal/@shorewood.state.net I May 8, 1997 I I Honorable Mayor and Members of the City Council City of Shorewood, Minnesota Councilmembers: I The Comprehensive Annual Financial Report of the City of Shorewood, Minnesota for the fiscal year ended December 31, .1996, is hereby submitted. Responsibility for both the accl.lracy of the data, and the completeness and fairness of the pre~entation, including all disclosures, rests with the City. T() the best of our knowledge and belief, the enclosed data is accurate in all qtaterial respects and is reported in a manner designated to present fairly the fUlancial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's fmancial activities have been included. I I I The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and Statistical. The Introductory section includes this transmittal letter, the City's organ~tional chart and a list of City officials. The Financial section jneludes the general purpose fmancial statements and the. combining and individual funq and account group fmancial. statements and schedules, along with the auditor's report on the financial statements: The Statistical section includes selected fmancial and demographic information, generally presented on a multi~year basis. I I The organization, form and contents of this report were prepared jnaccordance with the stanchtrds prescribed by the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States and Canada, the American Institute of Certified Public Accountants, and the Minnesota State Auditor's Office. I This report includes all funds and account groups of the City. The various fund types included are governmental, proprietary and fiduciary. Within the account groups are general fIXed assets and general long-term debt. The City provides its t;esidents and businesses with a full range of municipal services consisting of police, fire, public works, parks and general administrative services. The City also operates five enterprises: a water utility, sewer tttility, recycling utility, stormwater management.utilityand an off-sale liquor operation, consisting of three store sites. I I Th~/criteria !lsed in determining the component units to be included with the City as part of its report~g entity is consistent with those required by the Governmental Accounting Standards Board Statement No~ 14, "The Financial Reporting Entity". Based on these criteria, all funds,and account groups of the City are included in this report, and no component units are reported herein. I I I A Residential Community on Lake Minnetonka's South Shore I I ECONOMIC CONDITION AND OUTLOOK I The 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 ~hore of Lake Minnetonka. The City is predomin~tly a residential community with limited commercial businesses and two commercial shopping malls. The City is ()\square miles in area and has ,an estimated population of 6,794. I While the City has experienced an accelerated rate of growth in residential development. dtiring the' 1980's, the growth rate:: has slowed in the 1990's. The City will continue to experience growth in it's' residential base in the future, but because of the limited availability of large tracts of land, this will come at a reduc~d rate and likely will be smaller developmel1cts than in the past. I I MAJOR Il'lITIA TIVES , ' FINANCIAL ANn MANAGEMENT:EMPHA8IS I I Emphasis on Governance I The City Council in its leadership role is effectively establishing a focus for city govel1lII).ent in Shorewood. 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 the City and prioritized them so that the staff can efficiently and effectively allocate time and resources. I Emphasis on System Improvements I The City Council has adopted an open government policy and is implementing it by televising City Council meetings, by improving citizen newsletters and by directing City staff to improve communication to those residents affected by City activities projects. A series of neighborhood meetings on the five-year Capital Improvement Program gives citizens an opportunity for one on one dis~ussions with policy makers and for meaningful input on plans for the next five years. '. I 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,' ~hich includes employee arid 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. I I 'The second phase ~ that of Programming. Each year the five-year Capital Improvement Program is reviewed and updated based upon priorities established in phase one. Any changes to the Comprehensive Plan are made based upon the phase one decisions. I The third phase is Budgeting. The operatuig budget is established based,on decisions made in the first two phases. A budget format is being utilized which provides information and ~alytical data to the City Council and other readers. It defmes departmental missions and sets objectives for the bodget year. Ii:1 addition, it measures services provided and identifies the net affect each departmental budget has on property taxes. A survey has been conducted in each of the last four years to measure citizen satisfaction with city services with results incorporated in the budget as specific objectives. I I Emphasis on Public Improvements I The City is continuing to plan for and make public improvements in a number of areas. Major sections of the Comprehensive Plan were updated and items in that plan are being implemented. I 11 I I I I 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 1996. The fund had retained earnings of $205,348 at the end of 1996, which will be used for stormwater planning and future drainage projects. I The City was the "lead entity" in construction of the Southshore Senior Community Center. This project was undertaken jointly by five cities along the south shore of Lake Minnetonka and is scheduled to be open by June of 1997. I The City continued it's park and trail improvement program in 1996. The City made improvements to several parks during the year. All parks now have new playground equipment with the installation of equipment in Badger Park in 1996. The Badger Park football field was realigned and crowned during the Senior Community Center construction project. A volleyball court was built in Freeman Park. I I The water system expansion program continued in 1996 with the implementation of the second year of a 20 year plan. Three watermain installation projects were undertaken and a new water tower on the Minnewashta Elementary School property was completed. The City of Victoria assisted in the fmancing of the tower, as it will serve as a backup source of water for their City in the future. I Emphasis on Efficiently, Effectively Meeting Service Needs I As one of fourteen Lake Minnetonka Area municipalities, the City of Shorewood is involved in many contractual arrangements with other jurisdictions and private enterprises, to deliver municipal services to residents of the City. the City of Shorewood is committed to working cooperatively with area governmental jurisdictions to carefully consider optional methods to effectively deliver public services as efficiently as possible. The Shorewood City Administrator again in 1996 served as Chair of the Steering Committee of the Lake Minnetonka Area Cooperative Cities Group. I I FINANCIAL INFORMATION I INTERNAL CONTROLS I 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 require 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. I I BUDGETING CONTROLS I The City maintains budgetary controls to ensure compliance with legal provIsions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund are included in the annual appropriated budget. The legal level of budgetary control is established at the department level, but management control is exercised at the line item level. I As demonstrated by the statements and schedules included in the fmancial section of this report, the City continues to meet its responsibility for sound fmancial management. I I 111 GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of General Fund and Debt Service Fund revenues for the fiscal year ended December 31, 1996 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 1995 General Property Taxes $ 1,754,166 62.17% $ 233,736 Licenses and Permits 205,459 7.28% 20,602 Intergovernmental 427,468 15.15% (13,587) Charges for Services 45,245 1.60% 24,740 Fines and Forfeitures 80,826 2.87% 12,061 Special Assessments 145,806 5.17% (25,597) Interest on Investments 117,640 4.17% (30,276) Miscellaneous 33,393 1.18% (24,660) Operating Transfers In 11,450 0.41% ( 18,550) TOTAL $ 2,821,453 100.00% $ 178,469 The major increase in revenue for 1996 was in the area of property taxes. This was the first year in the previous four years in which the property tax levy was increased. Although the levy increased, the City's tax rate decreased by 5.64% from 1995. Most of the increased tax revenue was generated by new development. In addition, further development within the Waterford tax increment district increased the amount of tax increments generated during 1996. The increments will be used to retire the revenue bond debt incurred for improvements within the tax increment district. Building permit revenue exceeded the budget for the year with the continued development of the Heritage Addition and the Waterford Court area. Charges for service increased in 1996 primarily due to engineering services which were billed out during the year for project-related expenses. The addition of a full-time traffic control officer in 1995 contributed to an increase in fmes and forfeiture revenue over last year. Intergovernmental revenues decreased in 1996 due to a cutback in HACA aid by the state. Together, general property taxes and intergovernmental revenue account for 77.32% of total revenue. Aside from watermain extensions, which are accounted for in the Water Fund, there have been no new special assessments projects in the last several years; thus, the amount of special assessments collected is decreasing each year. Operating transfers in decreased from the previous year as budgeted transfers from the municipal liquor operation were not made primarily due to operating losses in 1995 and the need for working capital in the liquor fund. Investment income decreased in 1996 due to lower interest rates and, with the prepayment of debt issues, lower available cash balances. The following table presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended December 31, 1996 and the amount of increases or decreases in relation to the prior year's expenditures. IV I I I I I I I I I I I I I I I I I I I I I I EXPENDITURES AND OTHER USES AMOUNT %OF TOTAL INCREASE (DECREASE) FROM 1995 I I CURRENT: General Government Public Safety Public Works Parks and Recreation CAPITAL OUTLAY DEBT SERVICE: Principal Interest OPERATING TRANSFERS $ 767,392 20.90% $ 44,294 689,904 18.79% 39,201 472,607 12.87% 39,848 109,249 2.97% (6,197) 15,813 0.43% 15,813 887,000 24.15% 656,000 145,419 3.96% 45,596 585,136 15.93% 180,911 3,672,520 100.00% $ 1,015,466 I I I TOTAL $ I Overall expenditures increased significantly from 1995 to 1996 primarily due to debt service and operating transfers out. The cash balance in the debt service fund for Shorewood Oaks bond issue was sufficient to finance the early retirement of the issue and, subsequently, the remaining outstanding bonds were called in February, 1996. This caused a one year increase in debt service expenditures. Operating transfers increased due to additional efforts in capital improvement fmancing area, and to the closing of the Shorewood Oaks debt service fund. 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. I I I General government expenditures increased in 1996 with the installation of a new telephone and voice messaging system and additional computer purchases. Public safety expenditures increased due to growth, with Shorewood responsible for a larger portion of police and fire contracts, and for a full-time traffic control officer. A federal Cops Fast grant received by the South Lake Minnetonka Public Safety Department in 1995 subsidized 50% of the traffic officer's salary in 1996. This percentage will decrease by 25% per year over the next two years. Public Works expenditures also increased in 1996 due to personnel costs, supplies for street repairs, and snow and ice control during a heavier-than-usual snow season. Park and recreation expenditures were less than in 1996, reflecting lower maintenance and park planning costs. I I GENERAL FUND BALANCE I The General Fund balance as of December 31, 1996 is $1,522,952, a decrease of $21,396 from 1995. This represents a 1.39% reduction in the fund balance. The City Council had a planned reduction of the General Fund balance of $90,000 built into its 1996 budget. Economic conditions during the year caused larger than expected revenues, and employee awareness of budgetary constraints resulted in lower expenditures, which, in turn, resulted in favorable budget variances for both revenue and expenditures Therefore, the reduction of the fund balance was less than planned. 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 60.5% 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 1997 to lower the property tax levy. This will reduce the fund balance to $1,462,952, or 57.8% ofthe 1997 budget, which still exceeds acceptable levels. I I I I v I I ENTERPRISE OPERATION The City's enterprise fund activities for 1996 are summarized as follows: I OPERATING REVENUES OPERATING EXPENSES OPERATING INCOME (LOSS) I Water Sewer Recycling Stormwater Liquor - Tonka Bay - Store I - Store II $ 272,678 719,448 70,535 44,491 97,788 104,796 139,470 $ 251,134 738,100 70,945 15,033 90,743 163,789 120,344 $ 21,544 (18,652) (410) 29,458 7,045 (58,993) 19,126 I I I Generally accepted accounting principles require the depreciation of contributed assets, which results in net losses in some cases. However, past and present City fmancial 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. I I DEBT ADMINISTRATION I As of December 31, 1996, the City's debt outstanding totaled $4,402,500. Of this total, $815,000 were general obligation special assessment bonds issued to fmance the construction of sanitary sewer, street, water and storm sewer improvements. The City issued $860,000 in general obligation water revenue bonds in 1996 to fmance water system extensions and improvements. Total outstanding general obligation water revenue bonds at year end is $2,780,000. 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 $7,500 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. I I 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. The City retired $120,000 of this issue in 1996, leaving an outstanding balance at year end of $800,00. The District will expire in April, 2000. I I I The City's bond rating as rated by Moody's Investor Service is "AI" 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 fmancial management, and anticipated maintenance of low debt ratios by the City. I CASH MANAGEMENT I 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 I VI I I I I positive cash balances, with the City overall maintaining a positive cash balance. This pooled cash concept provides for investing of greater amounts of money at more favorable rates. Interest earnings are then allocated to the participating funds. During 1996, the City of Shore wood earned $368,378 in interest revenue. RISK MANAGEMENT I 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. I I 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 fmancially strong. I OTHER INFORMATION I INDEPENDENT AUDIT I 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 fmancial section of this report. I CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING I 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 fmancial report for the fiscal year ended December 31, 1995. I In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual fmancial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. I A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. I ACKNOWLEDGMENTS I 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. I Respectfully Submitted, I James C. Hurm City Administrator Alan 1. Rolek Finance Director/Treasurer I I Vll I I I I I I I I I I I I I I I I I I I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shorewood, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1995 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. ~Ir jJth/~ Executive Director I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION II FINANCIAL SECTION I I APID I I CERTIFIED PUBLIC ACCOUNTANTS AND CoNSULTANTS I INDEPENDENT AUDITOR'S REPORT I Honorable Mayor and City Council City of Shorewood, Minnesota I We have audited the accompanying general purpose financial statements of the City of Shore wood, Minnesota, as of and for the year ended December 31, 1996 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 [mancial statements based on our audit. I 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 [mancial 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. I I In our opinion, the general purpose [mancial statements referred to above present fairly, in all material respects, the [mancial position of the City of Shorewood, Minnesota at December 31, 1996 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. I I In accordance with Government Auditing Standards we have also issued a report dated March 13, 1997 on our consideration ofthe City's internal control structure and a report dated March 13, 1997 on its compliance with laws and regulations. I Our audit was conducted for the purpose of forming an opinion on the general purpose [mancial 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 [mancial statements of the City of Shorewood, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose [mancial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose [mancial statements taken as a whole. I I March 13, 1997 Minneapolis, Minnesota at.d" ~ 1 ~ ( ABDO, ABDO & EICK Certified Public Accountants I I I Member of American Institute of Certified Public Accountants Private Companies Practice Section I 115 EAST HICKORY STREET. SUITE 302 P.O. BOX 3166 MANKA TO. MINNESOTA 56002.3166 (507) 625.2727 FAX (507) 388.9139 204 EAST PEARL STREET P.O. BOX 345 OWATONNA. MINNESOTA 55060.0345 (507) 451.9136 FAX (507) 451.0794 1060 NORTHLAND PLAZA 3800 WEST 80TH STREET MINNEAPOLIS. MINNESOTA 55431 (612) 835.9090 FAX (612) 896.3620 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the financial statements are intended to provide an overview and broad perspective of the City's financial position and operations. . These statements present a summary set of information needed to control and analyze .current operations to determine compliance with legal and budgetary limitations and to assist in financial planning. The following general purpose financial statements are presented: 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 Ful1d Types Combined Statement of Cash Flows - All Proprietary Fund Types $ 58 596 $ 22319 31 038 31 020 398 102 $ 97 204 25 150 8160 13 985 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1996 Governmental Fund Types Debt Capital General Service Projects ASSETS AND OTHER DEBITS ASSETS Cash and temporary investments Investments for deferred compensation Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Note receivable Due from other funds Inventories, at cost Prepaid items Fixed assets, net Bond discount, net OTHER DEBITS Amounts available in debt service funds Amounts to be provided for debt retirement $1 57J 287 $492891 $2 026 275 27 898 6517 32 736 44 726 3655 20 339 8887 1675 398 674 8 161 13 985 TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY (DEFICIT) AND OTHER CREDITS LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Refundable deposits payable Deferred revenue Due to other funds Lease purchase payable General obligation bonds payable Tax increment bonds payable General Obligation revenue bonds payable Deferred compensation benefits payable $1 665925 $901 737 $2090044 TOTAL LIABILITIES 142973 398 102 144499 EQUITY (DEFICIT) AND OTHER CREDITS Investment in general fixed assets Contributed capital Retained earnings Unreserved Fund balance (deficit) Reserved Unreserved Designated Undesignated 503 635 1 522952 1 971 530 (25 985) TOTAL EQUITY (DEFICIT) AND OTHER CREDITS TOTAL LIABILITIES, EQUITY (DEFICIT) AND OTHER CREDITS 1 522 952 503 635 I 945 545 $1 665925 $901 737 $2090044 See Notes to Financial Statements. -2- CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1996 REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous TOTAL REVENUE EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay Debt service Principal Interest and service charges 752 095 TOTAL EXPENDITURES 752 095 (156989) EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Lease purchase proceeds Operating transfers out 568 270 3 11 000 (239999) 639271 TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (21 396) (829671) 1 544348 1419732 482 282 1 376837 FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFER IN FUND EQUITY TRANSFER OUT FUND BALANCE, DECEMBER 31 114342 (86 426) (27916) $1 522952 $ 503635 $ 1 945 545 See Notes to Financial Statements. -4- I I I I I I I I I I I I I I I I I I I I I Exhibit 2 Totals I (Memorandum Only) 1996 1995 $ 1 754 166 $ 1 520 430 I 205 459 184857 522 088 525 468 45 245 20 505 I 80 826 68 765 147210 177 920 227 982 225424 422 133 82 559 I 3 405 109 2 805 928 I 767 392 719 092 689 904 647 633 472 607 432 759 I 109249 114 286 767908 382 770 I 887 000 231 000 145419 99 823 3 839479 2 627 363 I (434370) 178 565 I 579 720 587 225 311 000 (825135) (567225) I 65 585 20 000 I (368785) 198565 4340917 4 142352 I 114342 6449 (114 342) (6449) I $ 3 972 132 $ 4340917 I I I I -5- CITY OF SHOREWOOD, MINNESOTA STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 1996 Exhibit 3 REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessment Interest on investments Miscellaneous revenue Variance - Favorable Budget Actual (Unfavorable ) $ 1 573 930 $ 1 569653 $ (4277) 170 300 205 459 35 159 427 468 427 468 48 500 45 245 (3 255) 80 000 80 826 826 75 000 95711 20 711 21 500 33 393 11 893 2396698 2 457 755 61 057 TOTAL REVENUE EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay 761422 767 392 (5970) 694 268 689 904 4364 453 226 472 607 (19381) 130821 109 249 21 572 52775 15813 36 962 2 092 512 2 054 965 37 547 304 186 402 790 98 604 30 000 (30000) (424 186) (424 186) (394 186) (424 186) (30 000) TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (21 396) $ (68604) $ (90000) FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 1 544 348 $ 1 522 952 See Notes to Financial Statements. -6- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 4 COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 3 I, 1996 OPERATING REVENUE Sales Less cost of sales Entecprise GROSS PROFIT $ 1 705 355 (1 364 953 ) 340 402 Charges for services Permits and connection fees 1 073 136 34 016 GROSS PROFIT AND REVENUE 1 447554 OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Water purchases Utilities MCES disposal charges Rent Advertising Other 196 806 15471 15 223 281 179 9863 166 129 1257 21 807 10 492 76418 488 439 113514 9159 44 331 TOTAL OPERATING EXPENSES 1 450 088 OPERATING LOSS (2 534 ) NONOPERATING REVENUE (EXPENSES) General property taxes Special assessments Interest on investments Other income Interest expense 16304 59919 140396 22 13 7 (74473 ) TOTAL NONOPERATING REVENUE (EXPENSES) NET INCOME BEFORE OPERATING TRANSFERS 164283 161 749 OPERATING TRANSFERS FROM OTHER FUNDS 320 150 OPERATING TRANSFERS TO OTHER FUNDS (74 735) NET INCOME 407 164 RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 685 658 $ 1 092 822 See Notes to Financial Statements. -7- CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1996 Exhibit 5 EnteI:Prise 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 - Accrued interest receivable Delinquent taxes receivable Accounts receivable 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 $ (2 534 ) 22 13 7 282 196 18 888 32 (11441) (145 756) 34 411 (24291 ) 647 (34913 ) 3420 (7 593) (34411) 100792 CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds Operating transfers from other funds 320 150 (74735) 245415 CASH PROVIDED 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 fixed assets Property taxes levied for debt service Special assessments paid 849 293 (15000) (74473 ) (1 805 726) 16304 54917 CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (974685) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 140396 (488082) DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 2881217 $ 2 393 135 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds $ 556 923 $ 232 500 Additions to contributed capital from note proceeds See Notes to Financial Statements. -8- I I I I I I I I I I I I I I I I I I I I I Note 1: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity 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 Shore wood (the primary government) and its component units. The City of Shore wood does not have any component units requiring either a blended or discrete presentation. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmentalfunds are used to account for the City's general government activities. Governmental fund types use the flow of current fmancial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (Le., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The generalfund is the City's primary operating fund. It accounts for all fmancial resources of the City, except those required to be accounted for in another fund. The debt service funds account for the servicing of general long-term debt not being fmanced by proprietary funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable F ASB pronouncements in accounting and reporting for its proprietary operations. Proprietary funds include the following fund type: -9- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the Council has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Agency Funds are established to account for cash or other assets held by the city as trustee or agent for individuals, private organizations, other governments and/or other funds. The fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. Account Groups. The general fixed assets account group is used to account for fixed assets not accounted for in proprietary funds. The general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Assets, Liabilities and Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements and shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. Investments are stated at lower of cost or amortized cost, or market value, except for investments in the deferred compensation agency fund which are reported at market value. Earnings on investments are allocated to the individual funds based upon the average of month-end cash and investment balances. Property Taxes The City Council annually adopts a tax levy and certifies it to the County for collection. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, June, and November each year. Taxes payable on homestead property, as defmed by State statutes, are partially reduced by a homestead and agricultural credit aid. The credit is 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. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability for delinquent taxes not received within 60 days after year end. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All special assessments receivable are offset by a deferred revenue liability. Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivableslpayables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." -10- I I I I I I I I I I I I I I I I I I I I I Note 1: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available fmancial resources. Inventories and Prepaid Items/Deferred Charges The inventories are stated at average 'cost, which approximates market using the fIrst-in, fIrst-out (FIFO) method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items or deferred charges. Fixed Assets Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated. Interest incurred during construction is not capitalized on general fixed assets. Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are immovable and of value only to the City) are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the general fixed assets group or capitalized in the proprietary funds. Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date of donation. Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line method over the following estimated useful lives: Assets Years Furniture and equipment Collection and distribution system 5 - 10 40 Compensated Absences Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available fmancial resources is reported as an expenditures 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 fmancial 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. Long-term Obligations The City reports long-term debt of governmental funds at face value in the general long-term debt account group. Certain other governmental fund obligations not expected to be fmanced with current available fmancial resources are also reported in the general long-term debt account group. Long-term debt and other obligations fmanced by proprietary funds are funds are reported as liabilities in the appropriate funds. -ll- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other fmancing source net of the applicable premium or discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Issuance costs are reported as deferred charges. Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund balance represent tentative management plans that are subject to change. The proprietary fund's contributed capital represents equity acquired through capital grants and capital contributions from developers, customers or other funds. Memorandum Only - Total Columns Total columns on the general purpose fmancial statements are captioned as "memorandum only" because they do not represent consolidated fmancial infonnation and are presented only to facilitate fmancial analysis. The columns do not present infonnation that reflects fmancial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Comparative DatalReclassifications Comparative total data for the prior year have been presented in the selected sections of the accompanying fmancial statements in order to provide an understanding of changes in the City's fmancial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the all governmental funds, debt service and the capital projects funds, which adopt project length budgets. All annual appropriations lapse at fiscal year end. In August of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 15, the proposed budget is presented to the City's council for review. The council holds public hearings and a fmal budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the City Council. B. Compliance and Accountability Fund Deficits The following fund has a deficit fund balance as of December 31,1996: Capital Projects Funds Shady Island Bridge Reconstruction $ 25 985 The deficit in this fund will be eliminated by future revenue sources. -12- I I I I I I I I I I I I I I I I I I I I I Note 3: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Deposits and Investments Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and temporary investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: Deposits In accordance with Minnesota Statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 11 0% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). 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 or in a fmancial institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $1,100,059 and the bank balance was $1,145,541. Of the bank balance, all was covered by federal depository insurance or by collateral held by the City's agent in the City's name. Investments Investments are categorized into these three categories of credit risk: 1. Insured or registered, or securities held by the City or its agent in the City's name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. At year end, the City's investment balances were as follows: Category 2 3 Carrying Market Amount Value $ 2 263 249 $2 248 466 3011 904 3 060 846 5275 153 5309312 U.S. Government Securities Commercial Paper $ 2 263 249 $ 3 011 904 $ 5275 153 $ $ Total $ Investments not subjected to categorization: 4M Money Market Fund Deferred compensation investments 106476 230 140 $ 5611 769 106476 230 140 $5 645 928 Total investments Cash on Hand Cash in the possession of the City, consisting of petty cash totals $1,900. -13- Note 3: CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS Cash and Investments Summary A reconciliation of cash and investments as shown on the Combined Balance Sheet for the City follows: Cash on hand Carrying amount of deposits Carrying amount of investments $ 1 900 1 100059 5 611 769 $ 6 713 728 Total Classified on the combined balance sheet as: Cash and temporary investments Investments for deferred compensation $ 6 483 588 230 140 $ 6713 728 Total B. Notes Receivable On May 28, 1996, the City entered into a service agreement with the City of Victoria to provide water. The total amount of the water availability fee was $232,500 and will be fmanced in five equal principal installments of $46,500 through July 1,2000. Two payments will be made in 1997 because the service was not completely in place at the end of 1996. Interest of5.75% will be paid on the outstanding balance. The outstanding balance at December 31, 1996 was $232,500. C. Fixed Assets A summary of changes in general fIXed assets for the year ended December 31, 1996 is as follows: Balance Beginning Balance of Year Additions Deletions End of Year Land $ 456 826 $ $ $ 456 826 Buildings and structures 1 322 073 1 322 073 Improvements other than buildings 1 268 345 45 913 1314258 Furniture and equipment 1 076 774 213 382 98 860 1191296 Total $4 124018 $ 259 295 $ 98 860 $4 284 453 The following is a summary of proprietary fund type fixed assets at December 31, 1996: EnteJ:Prise Funds Stormwater Mgmt Water Sewer Recycling Utility Liquor Total Furniture and equipment $ 24 178 $ 37 827 $ $ $ 100 260 $ 162 265 Collection and distribution system 3 151 862 7 522 466 10674328 Construction work in progress 2887177 2 887177 Total 6063217 7 560 293 100 260 13 723 770 Less accumulated depreciation (834877) (4 123750) (30210) (4 988 837) Net Fixed Assets $5 228 340 $3 436 543 $ $ $ 70 050 $ 8 734 933 -14- I I I I I I I I I I I I I I I I I I I I I Note 3: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED D. Deferred Revenue Deferred revenue at December 31, 1996 is comprised of the following: Debt Capital General Service Proiect Total Delinquent taxes $ 29 345 $ 163 $ $ 29 508 Special assessments Delinquent 1620 9827 484 11 931 Deferred 55 388 112 7676 395 843 Total $ 31 020 $ 398 102 $ 8160 $ 437282 E. Long-term Debt General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for general government activities. General obligation bonds are direct obligations and pledge the full faith and credit of the city. General obligation bonds currently outstanding are as follows: General Long-term Debt General Obligation Special Assessment Bonds The following bonds were issued to fmance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. Some issues, however, are partly fmanced by ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax levy equals 105% of the amount required for debt service. The excess of 5% is to cover any delinquencies in tax or assessment payments. Authorized and Issued Balance at Interest Rate Issue Date Maturity Date Year End G.O. Improvement Bonds of1991 $ 960 000 5.20-5.85% 11-01-91 G.O. Improvement Bonds of 1991 31000 8.00 9-01-91 G.O. Improvement Bonds of 1993 325 000 3.75-4.80 12-01-93 2-01-02 $ 570 000 2-01-97 7500 2-01-04 245000 Total General Obligation Improvement Bonds $ 822 500 General Obligation Tax Increment Revenue Bonds The following bonds were issued for redevelopment projects. The additional tax increments resulting from increased tax capacity of the redeveloped properties will be used to retire the related debt. They are not backed by the full faith and credit of the City. G.O. Tax Increment Bonds of1987 $ 920 000 2-01-00 $ 800 000 9.00% 5-01-91 -15- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED Other General Long-Term Debt Lease Purchase Payable During 1996, the City entered into a lease, with option to purchase, agreement as lessee for fmancing the South Shore Senior Center project. Title remains with the City so long as they are not in default of terms in the lease agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. Authorized and Issued Balance at Interest Rate Issue Date Maturity Date Year End $ 311 000 8-01-08 $ 311 000 6.22% 5-30-96 Sick leave/severance payable This liability represents vested benefits earned by employees through the end of the year, which will be paid at retirement in future periods. Total Sick leave/severance payable $ 29 344 Enterprise Fund Debt General Obligation Revenue Bonds G.O. Water Revenue Bonds of 1995 G.O. Water Revenue Bonds ofl996 3.90-5.50% 11-01-95 2-01-11 $1 920000 $ 1 920 000 860 000 4.00-5.40% 11-01-96 2-01-12 860 000 $2 780 000 Total General Obligation Revenue Bonds Changes in General Long-term Liabilities. During the year ended December 31, 1996, the following changes occurred in liabilities reported in the general long-term debt account group. Balance Balance January 1, December 31, 1996 Additions Reductions 1996 G.O. Improvement Bonds $1 589500 $ $ 767 000 $ 822 500 Tax Increment Bonds 920 000 120 000 800 000 Lease purchase payable 311 000 311 000 Sick leave/severance payable 21 863 7481 29 344 Total $2 531 363 $ 318 481 $ 887 000 $ 1 962 844 The annual service requirements to maturity for all bonds and notes outstanding at December 31, 1996 are as follows: -16- I I I I I I I I I I I I I I I I I I I I I Note 3: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED Enterprise General Long-term Debt Account Group Funds Tax G.O. Special Increment Lease G.O. Year Ending Assessment Revenue Purchase Revenue December 31. Bonds Bonds Payable Bonds Total 1997 $ 181 634 $ 336 869 $ 37544 $ 244 191 $ 800 238 1998 167250 367 859 37 544 318383 891 036 1999 160443 401 710 37544 295 934 895631 2000 148588 429 028 37 544 298 020 913 180 2001 136 776 37 544 284 739 459 059 Thereafter 162049 262 807 2425 350 2 850 206 Total 956 740 1 535 466 450 527 3866617 6 809 350 Less interest (134240 ) (735466) (139527) (1086617) (2095850) Principal $ 822 500 $ 800 000 $ 311 000 $ 2 780 000 $4713 500 Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of long-term debt totaled $503,635 at year end. Amounts to be Providedfor Long-term Debt. This represents future revenue to be generated for debt payments and sick leave/severance benefits payable, generally including interest earnings, tax increments, scheduled tax levies and deferred (future) special assessment levies. F. Fund Equity Reservations and Designations The components of fund equity are described in Note 1. Certain reserves and designations have been made in the following funds: Reserved Pm:pose Amount Governmental Funds Debt Service Funds 1993 Improvement and Refunding Waterford III Tax Increment Shady Hills Storm Sewer 1991 Improvement and Refunding Debt service on bonds issued Debt service on bonds issued Debt service on bonds issued Debt service on bonds issued $ 170512 7507 7819 317 797 $ 503 635 Total Reserved Unreserved - Designated Governmental Funds General Capital Projects Capital Improvements Park Capital Improvements Equipment Replacement Street Reconstruction MSA Construction Trail Capital Improvements 1995 Freeman Park Imp. Senior Community Center Cathcart Park Improvements Working capital $ 1 522 952 138410 11 0 864 76387 969 668 175812 95 873 24 866 376043 3607 Capital Improvements Park Improvements Equipment Streets MSA Construction Trail Improvements Freeman Park Senior Center Cathcart Park Total Unreserved - Designated $ 3 494 482 -17- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED G. Contributed Capital The changes in the government's contributed capital accounts for its proprietary funds were as follows: Sources Enteq>rise Water Sewer Total Beginning balance, Contributed capital Contributing sources: Developer and customer Water note proceeds $3716216 $4317318 73 314 $8 033 534 478610 232 500 551 924 232 500 Ending balance, Contributed capital $4 427 326 $4 390 632 $8817958 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City of Shorewood are covered by defmed benefit 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. 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. 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 defmed retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of the 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. -18- I I I I I I I I I I I I I I I I I I I I I Note 4: I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FfNANCIAL STATEMENTS DECEMBER 3 I, 1996 DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED PERA issues a publicly available [mancial report that includes [mancial statements and required supplementary information for PERF. That report may be obtained by writing to PERA, 514 S1. Peter Street, #200, S1. Paul, Minnesota 55102 or by calling (612) 296-7460 or 1-800-652-9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.23% and 4.23%, respectively, of their annual covered salary; The City is required to contribute the following percentages of annual covered payroll: 10.73% for Basic Plan PERF Members and 4.48% for Coordinated Plan PERF members. The City's contributions for the years ending December 31, 1996, and 1995 were $30,416 and $29,103, respectively, equal to the contractually required contributions for each year as set by state statute. Note 5: JOINT VENTURES I I I I I I I I I I I I A. South Lake Minnetonka Public Safety Department The City of Shore wood participates in a joint powers agreement with the cities of Excelsior, Greenwood and Tonka Bay which establishes the South Lake Minnetonka Public Safety Department for the purpose of providing police protection within the four communities. The agreement creates a coordinating committee, comprised of the mayors of each participating community, as the governing body, which meets quarterly. Each year, the Coordinating committee adopts an operating budget, which is approved by all participating cities. The cost of the budget is divided between the participating cities based upon a five-year average demand for service in each city. The percentage contributed in 1996 by the City of Shorewood is 44.8%. Any budget shortfall is made up first from department reserves, with any excess shortfall assessed to each participating community according to the formula. The current agreement continues through December 31, 1997. South Lake Minnetonka Public Safety Department has accounts payable, accrued payroll, compensated absences and deferred revenue in the General Fund of$I64,389, and deferred compensation benefits payable in the Agency Fund of $205,318 at year end. There is no other current or long-term debt outstanding as of December 31, 1996. The following is a summary of the Department's balance sheet as of December 31, 1996 and the statement of revenue, expenditures and changes in fund balance for the General Fund for the year ended December 31, 1996. SOUTH LAKE MfNNETONKA PUBLIC SAFETY DEPARTMENT BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1996 General Totals General Agency Fixed (Memorandum Only) Fund Fund Assets 1996 1995 Total assets $ 316 614 $ 205318 $332961 $ 854 893 $ 763 622 Liabilities $ 164389 $ 205318 $ $ 369 707 $ 309 275 Fund equity 152 225 332 961 485 186 454347 Total liabilities and fund equity $ 316 614 $ 205318 $332 961 $ 854 893 $ 763 622 -19- 1 CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 1 Note 5: JOINT VENTURES - CONTINUED 1 SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1996 (With comparative actual amounts for the year ended December 31, 1995) -I 1 Total revenue 1996 1995 Variance - Favorable Budget Actual (JJnfavorable) Actual $ 1 155 440 $ 1 189 252 $ 33812 $ 1 149971 1 Total expenditures 1 170440 1 177094 (6654 ) 1 119473 1 Excess of revenue over (under) expenditures $ (I5000) 12 158 $ 27 158 30 498 1 Fund balance, January 1 140067 $ 152225 109 569 $ 140067 1 Fund balance, December 31 "SerM61V B. South Lake Minnetonka Community Center 1 The City participates in a joint venture with the cities of Excelsior, Deephaven, Greenwood and Tonka Bay which establishes the Southshore Senior Community Center to provide senior citizens educational and I recreational activities. Upon completion of the Senior Center, the Cities will lease the Senior Center to the Friends of the South Lake Minnetonka Senior Community Center. The term of the lease shall be 25 years at a rental rate of$1 per year. The Friends of the South Lake Minnetonka Senior Community Center are required to pay all operating costs of the Senior Center. The member cities are responsible for a proportionate share of the 1 building construction. Shorewood fmanced their share with a lease purchase obligation. The amount of the lease purchase is $311,000 and is reflected in the General Long-term Debt Account Group. In the event operating costs are not covered by revenue, each member City is responsible for their proportional share of the 1 expense. The building costs incurred by the City are reported in the Senior Center Capital Project fund and will be recorded in the General Fixed Asset Account Group when the Senior Center is completed. The ownership interest of the City is proportionate to each City's investment in the Senior Center. Note 6: OTHER INFORMATION 1 A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. 1 1 Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$I,OOO,OOO. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. 1 1 -20- 1 CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1996 (With Comparative Totals for December 31, 1995) /-/~~/~~~:-) Park Capital Equipment Street ~ Improvements/ Improvement Replacement Reconstruction ASSETS / ./ Cash and temporary investments - -$--1Yl152 $ 111 597 $ 75240 $ 940 831 Accrued interest receivable 5364 1457 1 147 14 852 Accounts receivable Special assessments receivable Delinquent 485 Deferred 7676 Due from other funds 13 985 TOTAL ASSETS $ 147677 $ 113 054 $ 76 387 $ 969 668 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable $ I 107 $ 2190 $ $ Refundable deposits payable Deferred revenue 8160 Due to other funds TOTAL LIABILITIES 9267 2190 FUND BALANCE (DEFICIT) Unreserved Designated 138410 110 864 76387 969 668 Undesignated TOTAL FUND BALANCE (DEFICIT) 138410 11 0 864 76 387 969 668 TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) $ 147677 $ 113 054 $ 76 387 $ 969 668 -34- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 1996 (With comparative totals for December 31, 1995) City Hall Old Parking Season Vine Hill Market Lot Improvements Improvement Road Trail ASSETS Cash and temporary investments $ $ $ $ Accrued interest receivable Accounts receivable Special assessments receivable 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) Unreserved Designated Undesignated TOTAL FUND BALANCE (DEFICIT) TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) $ $ $ $ -36- I I I I I I I I I I I I I I I I I I I I I Exhibit C-l Continued I Cathcart Park Totals I Improvements 1996 1995 $ 3368 $ 2026275 $ 1 392816 I 239 32 736 48 882 8887 5464 485 684 I 7676 1066 13 985 85517 I $ 3 607 $ 2 090 044 $ 1 534 429 I $ $ 97 204 $ 45 220 25 150 25 150 8160 1 705 I 13 985 85 517 144499 157 592 I I 3607 1 971 530 1 491 433 (25 985) (114 596) 3607 1 945 545 1 376 837 I $ 3607 $ 2 090 044 $ 1 534429 I I I I I I I -37- I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1996 (With Comparative Totals for the Year Ended December 31, 1995) I Capital Equipment Street Improvements Replacement Reconstruction I REVENUE Intergovernmental $ $ $ Special assessments 1404 I Interest on investments 3799 1619 105 54 384 Miscellaneous Park dedication fees 17 500 Contributions and donations I Other TOTAL REVENUE 5 203 19 119 105 54 384 I EXPENDITURES Capital outlay I Personal services Other services and charges 86 23 384 84 1278 Professional services 1 755 3597 50 524 Construction costs 6803 11 237 I Machinery and equipment 158468 TOTAL EXPENDITURES 8644 26981/ 158 552 63 039 / I EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES (3441 ) (7 862) (158447) (8 655) I OTHER FINANCING SOURCES (USES) Operating transfers in 10000 30 000 104 186 270 000 Lease purchase proceeds I Operating transfers out (15000) (224 999) TOTAL OTHER FINANCING I SOURCES (USES) (5 000) 30 000 1 04 186 45001 EXCESS (DEFICIENCY) OF REVENUE AND OTHER I FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (8441 ) 22 13 8 (54261 ) 36 346 FUND BALANCE (DEFICIT), JANUARY 1 81 240 93361 130 648 932 068 I FUND EQUITY TRANSFER IN 65611 1275 1254 FUND EQUITY TRANSFER OUT (5 91 0 ) I FUND BALANCE (DEFICIT), DECEMBER 31 $ 138410 $ 11 0 864 $ 76 387 $ 969 668 I I -38- I I I Exhibit C-2 Continued I 1995 1995 Senior Shady Silverwood MSA Trail Capital Manor Park Freeman Park Community Island Bridge Park I Construction Improvements Improvement Improvement Center Reconstruction Grading $ 45 771 $ $ $ $ $ $ I 10 022 3419 1963 33 131 99 I 371 020 I 55 793 3419 1 963 404 151 99 I 177 71 26 1 108 32410 25 985 I 1 110 408 073 177 (" / 1 136 / 441 591/ 25 985 / 1/ I 71 I 55616 3348 827 (37440) (25 985) 98 24 500 129 584 I 311 000 I 24 500 440584 I 55616 27 848 827 403 144 (25 985) 98 I 139 673 68 025 (5910) 24 039 (27101) 1 177 5910 I (19477) (1 275) $ 175812 $ 95 873 $ $ 24 866 $ 376 043 $ (25 985) $ I I I -39- I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED YEAR ENDED DECEMBER 31, 1996 (With Comparative Totals for the Year Ended December 31, 1995) I City Hall Old Parking Season Vine Hill Market Lot Improvements Improvement Road Trail I REVENUE Intergovernmental $ $ 39 960 $ $ 8889 Special assessments I Interest on investments 416 81 Miscellaneous Park dedication fees Contributions and donations I Other 220 TOTAL REVENUE 416 39 960 301 8889 I EXPENDITURES Capital outlay I Personal services Other services and charges 6 6548 Professional services 65 Construction costs 1353 I Machinery and equipment TOTAL EXPENDITURES 1 424 I Ii 6548 I EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES (1 008) 39 960 300 2341 I OTHER FINANCING SOURCES (USES) Operating transfers in Lease purchase proceeds I Operating transfers out TOTAL OTHER FINANCING I SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES I AND OTHER FINANCING USES (1 008) 39960 300 2341 FUND BALANCE (DEFICIT), JANUARY 1 (562 ) (59205) 954 (21818) I 1570 19245 FUND EQUITY TRANSFER IN 19477 FUND EQUITY TRANSFER OUT (1254) I FUND BALANCE (DEFICIT), DECEMBER 31 $ $ $ $ I I -40- I I I Exhibit C-2 Continued I Cathcart Park Totals I Improvements 1996 1995 $ $ 94 620 $ 84 413 1404 6517 I 1304 11 0 342 77 507 17 500 20 250 I 371 020 528 220 3728 I 1 304 595 106 192 943 I 12 939 5144 37914 5274 114336 49 688 I 12801 441 377 302 924 158468 3709 I 17 945 / 752 095 374 534 (16641) (156989) (181591) I 568 270 557 225 I 311 000 (239 999) (163000) I 639271 394 225 I (16641 ) 482 282 212634 I 20 248 1 376 837 1 159095 114342 6449 I (J,7916) (1341) $ 3607 $ 1 945 545 $ 1 376 837 I I I -41- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MIN~SOTA ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business, where the costs of providing services to the general public are financed primarily through user charges. Water Fund - This fund is used to account for the activities of the City water system and to. service debt incurred in the building of infratructure for the .system. Sewer Fund -. This fund is used to account for tbe activities of the City sanitary sewer system. RecycIin2 Fund - This fund is used to account for the activities ;of the City recycling program. , .. I Stormwater Maml2ement. Utility Fund - This fund is used to account for the activities of the City Stormwater Management system. Liquor Fund - This fund is used to account for the activities of the City's off-sale liquor operation. The operation consisted of three off-sale liquor store sites in 1996. A. store which was closed temporarily in January, 1994 due to a state highway project was reopened in a different location in February, 1995. In addition, a store locati9n was added in December, 1994, when the Cit)' assumed the manage~ent of the Tonka Bay Liquor Store. A portion of the net income generated by the operation, if any. is used to. fund general fund activities. CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1996 (With Comparative Totals for December 31, 1995) ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Delinquent Deferred Current portion of note receivable Due from other funds Inventories, at cost Prepaid items Water Sewer $ 1 056041 $ I 082 948 17 632 14885 470 43 721 181 287 16307 14929 881 217 26 000 93 000 4005 2 064 2 112 393 1 322 113 6063217 7 560 293 (834 877) (4 123750 ) 5 228 340 3 436 543 21 489 139 500 160989 $ 7501 722 $ 4 758 656 TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS OTHER ASSETS Bond discount, net of amortization Notes receivable, less current portion above TOTAL OTHER ASSETS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable $ 121 805 $ 12 356 Salaries and compensated absences payable 161 57 Deferred revenue Due to other funds Current portion of long-term debt 125000 TOTAL CURRENT LIABILITIES 246966 12413 LONG-TERM LIABILITIES Bonds payable less current portion above 2 655 000 TOTAL LIABILITIES 2901966 12413 FUND EQUITY Contributed capital 4427 326 4 390 632 Retained earnings Unreserved 172 430 355 611 TOTAL FUND EQUITY 4599756 4 746243 TOTAL LIABILITIES AND FUND EQUITY $ 7501 722 $ 4 758 656 -42- I I I I I I I I I I I I I I I I I I I I I Exhibit D-l Stormwater I Management Totals Recycling Utility Liquor 1996 1995 I $ 12 385 . $ 189385 $ 52376 $ 2 393 135 $ 2881217 275 1343 2084 36219 55 107 470 502 9176 12 095 246 279 234 838 I 266 1083 32 585 13 701 1 107 1459 909 783 782911 93 000 I 34411 281 738 281 738 257447 11 021 17 090 17737 I 23 209 205 365 347219 4010 299 4277 871 100 260 13 723 770 11 361 121 I (30210) (4 988 837) (4707661 ) 70 050 8 734 933 6 653 460 I 21 489 11 799 139 500 I 160989 $ 23 209 $ 205 365 $ 417 269 $12 906 221 $10 943 130 I $ $ $ 73 768 $ 207 929 $ 242 842 17 7277 7512 4092 I 7593 34411 125000 15 000 I 17 81 045 340441 303 938 I 2655000 1 920 000 17 81 045 2 995 441 2 223 938 I 8817958 8 033 534 23 209 205 348 336 224 1 092 822 685 658 I 23 209 205 348 336 224 9910 780 8 719192 $ 23 209 $ 205 365 $ 417 269 $12 906 221 $10 943 130 I I I -43- I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS I COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 (With comparative totals for the year ended December 31, 1995) Water Sewer I OPERATING REVENUE Sales $ $ Less cost of sales I GROSS PROFIT Charges for services 259 228 698 882 I Permits and connection fees 13 450 20 566 GROSS PROFIT AND REVENUE 272 678 719448 OPERATING EXPENSES I Personal services 5680 9645 Supplies 5412 1689 I Repairs and maintenance 8777 6446 Depreciation 80 649 190 154 Professional services 6306 752 Contracted services 49219 31 647 I Communication 1 112 145 Insurance 4575 3540 Water purchases 10 492 Utilities 47 739 4440 I MCES disposal charges 488 439 Rent Advertising Other 31 173 1203 I TOTAL OPERATING EXPENSES 251 134 738 100 OPERATING INCOME (LOSS) 21 544 (18 652) I NONOPERATING REVENUE (EXPENSES) General property taxes 16 304 Special assessments 59919 I Interest on investments 75 477 54019 Other income (expense) 19725 2243 Interest expense (74473 ) I TOTAL NONOPERATING REVENUE (EXPENSES) 96 952 56 262 INCOME (LOSS) BEFORE TRANSFERS 118496 37610 I OPERATING TRANSFERS FROM OTHER FUNDS 210 150 OPERATING TRANSFERS TO OTHER FUNDS (10726) (24201 ) I NET INCOME (LOSS) 317 920 13 409 RETAINED EARNINGS (DEFICIT), JANUARY 1 (145490) 342 202 I RETAINED EARNINGS (DEFICIT), DECEMBER 31 $ 172 430 $ 355611 I I -44- I I I Exhibit D-2 Stormwater I Management Totals Recycling Utility Liquor 1996 1995 $ $ $ 1 705 040 $ 1 705 040 $ 1 473 403 I (1 362 986) (1 362 986) (1165021 ) 342 054 342 054 308 382 I 70 535 44491 1 073 136 961 151 34 016 37 207 70 535 44491 342 054 1 449 206 I 306 740 I 725 1359 179397 196806 199 486 8370 15471 21 473 I 15223 16490 10 376 281 179 274 583 424 2381 9863 42 592 I 70 090 13 250 1923 166 129 168 628 1257 1319 13 692 21 807 22 164 10 492 12073 I 24239 76418 67 792 488 439 446 113 113514 113514 92 863 9159 9159 9594 I 130 11 825 44331 25 295 70 945 15033 374 876 1 450 088 1 400 465 I (410) 29 458 (32 822) (882 ) (93 725) 16304 17 506 I 59919 550 4448 5902 140396 84 365 (1483) 20 485 8143 I (74473 ) (3001 ) 550 4448 4419 162 631 107 013 I 140 33 906 (28 403 ) 161 749 13 288 11 0 000 320 150 180 000 I (39 808) (74 735) (200 000) 140 104 098 (28 403 ) 407 164 (6712) I 23 069 101 250 364 627 685 658 692 370 $ 23 209 $ 205 348 $ 336 224 $ 1 092 822 $ 685 658 I I I -45- CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1996 (With Comparative Totals for the Year Ended December 31, 1995) 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 - Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Due from other funds Inventories Prepaid items Increase (decrease) in liabilities - Accounts payable Salaries and compensated absences payable Deferred revenue Due to other funds $ 21 544 19 725 81 666 2174 32 (5725 ) (150936) (231 ) (26819) (3 ) CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds Operating transfers to other funds (58 573 ) 210150 (10726) CASH 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 fixed assets Property taxes levied for debt service Special assessments collected 199 424 849 293 (15000) (74473 ) (1 780939) 16304 54917 CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments (949 898) 75477 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 (733 570) 1 789611 $ 1 056 041 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired from other funds $ 483 609 $ 232 500 Additions to contributed capital from note proceeds -46- Sewer I I I I I I I I I I I I I I I I I I I $ (18652) 2243 190 154 11 279 127 6464 1064 10 912 (2) (7 593) 195996 (24201 ) (24201 ) (21690) (21690) 54 019 204 124 878 824 $ 1 082 948 $ 73 314 $ I I Exhibit D-3 Stormwater I Management Totals Recycling Utility Liquor 1996 1995 $ (410) $ 29 458 $ (32822) $ (882 ) $ (93 725) I (1 483) 20 485 8143 10 376 282 196 274 898 I 731 1432 3272 18 888 (15502) 32 62 (7 205) (121 ) 1483 (11441) 22 410 I (664 ) (620 ) (145 756) 2168 34 411 34 411 (34 411 ) (24291 ) (24291 ) (104032) (186 ) 647 (4 303 ) I (13 625) (5381 ) (34913) 112767 (28) 3453 3420 1249 (7 593) 7593 I (34411 ) (34 411 ) 34411 (7 548) 16496 (45579) 100 792 211 728 I 11 0 000 320 150 180 000 (39 808) (74735) (200 000) I 70 192 245415 (20 000) I 849 293 I 908 250 (15000) (15000) (74473 ) (3 00 I ) I (3 097) (1 805 726) (805 536) 16304 17 506 54 917 104 662 I (3 097) (974 685) I 206881 I 550 4448 5 902 140 396 84 365 (6998) 91 136 (42774 ) (488082) 1482974 I 19383 98 249 95 150 2 881217 1 398 243 $ 12385 $ 189385 $ 52376 $ 2 393 135 $ 2881217 I $ $ $ $ 556 923 $ 81 675 I $ $ $ $ 232 500 $ I I -47- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA WATER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1996 AND 1995 ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Delinquent Deferred Current portion of note receivable Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS OTHER ASSETS Bond discount, net of amortization Note receivable, less current portion above TOTAL OTHER ASSETS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries payable Current portion of long-term debt TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Bonds payable less current portion above TOTAL LIABILITIES FUND EQUITY Contributed capital Retained earnings (deficit) Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY -48- Exhibit D-4 1996 1995 $ 1 056041 $ I 789611 17632 19 806 470 502 43 721 37 996 16307 881217 746 588 93 000 4005 3 774 2 112393 2 598 277 6063217 3 798 669 (834 877) (754231) 5 228 340 3 044438 21 489 11 799 139 500 160 989 11 799 $ 7501 722 $ 5654514 $ 121 805 $ 148 624 161 164 125 000 15000 246 966 163 788 2 655 000 1 920 000 2 901 966 2 083 788 4 427 326 3 716216 172 430 (145490) 4 599 756 3 570 726 $ 7501 722 $ 5654514 CITY OF SHOREWOOD, MINNESOTA Exhibit D-5 WATER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT) YEARS ENDED DECEMBER 31, 1996 AND 1995 OPERATING REVENUE Charges for services Permits and connection fees 1996 1995 $ 259 228 $ 190 100 13 450 8466 272 678 198 566 5680 5823 5412 4180 8777 7906 80 649 79 617 6306 32 048 49219 43 550 1 112 1058 4575 3918 10492 12073 47 739 38271 31 173 15 142 251 134 243 586 21 544 (45 020) 16304 17 506 59919 75477 36 397 19 725 8112 (74473 ) (3 001 ) 96 952 59014 118496 13 994 210 150 (10726) 317 920 13 994 (145490) (159484 ) $ 172 430 $ (145490) TOTAL OPERATING REVENUE OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Water purchases Utilities Other TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUE (EXPENSES) General property taxes Special assessments Interest on investments Other income Interest expense TOTAL NONOPERATING REVENUE (EXPENSES) INCOME BEFORE TRANSFERS OPERATING TRANSFERS FROM OTHER FUNDS OPERATING TRANSFERS TO OTHER FUNDS NET INCOME RETAINED EARNINGS (DEFICIT), JANUARY I RETAINED EARNINGS (DEFICIT), DECEMBER 31 -49- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA WATER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1996 AND 1995 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 - Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Prepaid items Increase (decrease) in liabilities - Accounts and contracts payable Salaries and compensated absences payable CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds Operating transfers to other funds CASH PROVIDED 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 fixed assets Property taxes levied for debt service Special assessments collected CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired from other funds Additions to contributed capital from note proceeds -50- Exhibit D-6 1996 1995 $ 21 544 $ (45020) 19 725 8112 81 666 79 932 2174 (12224 ) 32 62 (5725 ) 1063 (150936) 8067 (231 ) (611 ) (26819) 142907 (3 ) 154 (58 573 ) 182442 210 150 (10726) 199424 849 293 1 908 250 (15000) (15000) (74 473) (3 001 ) (1 780 939) (728 495) 16304 17 506 54 917 1 04 662 (949 898) 1 283 922 75477 36 397 (733 570) 1 502761 1 789611 286 850 $1 056041 $1 789611 $ 483 609 $ $ 232500 $ CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMP ARA TIVE BALANCE SHEETS DECEMBER 31, 1996 AND 1995 ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Special assessments receivable Delinquent Deferred Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Deferred revenue TOTAL CURRENT LIABILITIES FUND EQUITY Contributed capital Retained earnings Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY -51- Exhibit D- 7 I I I I I I I I I I I I I I I I I I I 1996 1995 $ 1 082 948 $ 878 824 14885 26 164 181287 181414 14929 13 051 26 000 34 342 2064 3 128 I 322 113 I 136923 7 560 293 7 465 289 (4 123 750) (3 933 596) 3 436 543 3 531 693 $ 4 758 656 $ 4668616 $ 12 356 $ 1444 57 59 7593 12413 9096 4 390 632 4317318 355611 342 202 4 746 243 4 659 520 $ 4 758 656 $ 4668616 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-8 SEWER FUND COMP ARA TIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1996 AND 1995 1996 1995 OPERATING REVENUE Charges for services $ 698 882 $ 679 832 Permits and connection fees 20 566 28741 TOTAL OPERATING REVENUE 719448 708 573 OPERATING EXPENSES Personal services 9645 6088 Supplies 1689 1563 Repairs and maintenance 6446 7855 Depreciation 190 154 185401 Professional services 752 8482 Contracted services 31 647 39 840 Communication 145 261 Insurance 3540 5018 Utilities 4440 4252 MCES charges 488 439 446 113 Other 1203 1455 TOTAL OPERATING EXPENSES 738 100 706 328 OPERATING INCOME (LOSS) (18652) 2245 NONOPERATING REVENUE (EXPENSES) Interest on investments 54 019 39 006 Other income 2243 TOTAL NONOPERATING REVENUE (EXPENSES) 56 262 39 006 INCOME BEFORE OPERATING TRANSFERS 37610 41 251 OPERATING TRANSFERS TO OTHER FUNDS (24201 ) NET INCOME 13 409 41 251 RETAINED EARNINGS, JANUARY 1 342 202 300 951 RETAINED EARNINGS, DECEMBER 31 $ 355 611 $ 342202 -52- CITY OF SHOREWOOD, MINNESOTA Exhibit D-9 SEWER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1996 AND 1995 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (18652) $ 2245 Other income related to operations 2243 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 190 154 185 401 (Increase) decrease in assets - Accrued interest receivable 11 279 (5 657) Accounts receivable 127 5628 Special assessments receivable 6464 (5 178) Prepaid items 1064 1265 Increase (decrease) in liabilities - Accounts payable 10 912 (38661 ) Salaries and compensated absences payable (2) 49 Deferred revenue (7 593) 7 593 CASH PROVIDED BY OPERATING ACTIVITIES 195996 152 685 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds (24201 ) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets (21690) (1 166) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 54 019 39 006 INCREASE IN CASH AND CASH EQUIVALENTS 204 124 190 525 CASH AND CASH EQUIVALENTS, JANUARY 1 878 824 688 299 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1 082 948 $ 878 824 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired from other funds $ 73314 $ 81 675 -53- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ASSETS Cash and temporary investments Accrued interest receivables Accounts receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS RETAINED EARNINGS Unreserved CITY OF SHOREWOOD, MINNESOTA Exhibit D-l 0 RECYCLING FUND COMP ARA TIVE BALANCE SHEETS DECEMBER 31, 1996 AND 1995 1996 1995 $ 12385 $ 19383 275 1006 9176 1971 266 247 I 107 462 $ 23 209 $ 23 069 $ 23 209 $ 23 069 -54- CITY OF SHOREWOOD, MINNESOTA Exhibit D-II RECYCLING FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1996 AND 1995 1996 1995 OPERATING REVENUE Charges for services $ 70 535 $ 46 883 OPERATING EXPENSES Personal services 725 924 Contracted services 70 090 68 810 Other 130 TOTAL OPERATING EXPENSES 70 945 69 734 OPERATING LOSS (410) (22851 ) NONOPERATING REVENUE (EXPENSES) Interest on investments 550 1475 NET INCOME (LOSS) 140 (21376) RETAINED EARNINGS, JANUARY 1 23 069 44 445 RETAINED EARNINGS, DECEMBER 31 $ 23 209 $ 23 069 -55- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-12 RECYCLING FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31,1996 AND 1995 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES Operating loss $ (410) $ (22 851 ) Adjustments to reconcile operating loss to net cash used by operating activities: (Increase) decrease in assets - Accrued interest receivable 731 14367 Accounts receivable (7 205) (61 ) Special assessments receivable (664 ) 10 Increase (decrease) in liabilities - Accounts payable (4 370) CASH USED BY OPERATING ACTIVITIES (7 548) (12905) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 550 1475 DECREASE IN CASH AND CASH EQUIVALENTS (6998 ) (11430) CASH AND CASH EQUIVALENTS, JANUARY 1 19 383 30813 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 12 385 $ 19383 -56- CITY OF SHOREWOOD, MINNESOTA Exhibit D-13 STORMW A TER MANAGEMENT UTILITY FUND COMP ARA TIVE BALANCE SHEETS DECEMBER 31, 1996 AND 1995 1996 1995 ASSETS CURRENT ASSETS Cash and temporary investments $ 189 385 $ 98 249 Accrued interest receivable 1343 2775 Accounts receivable 12 095 11 974 Special assessments receivable Delinquent 1083 403 Deferred 1459 1 519 TOTAL ASSETS $ 205 365 $ 114 920 LIABILITIES AND RETAINED EARNINGS LIABILITIES Accounts and contracts payable $ $ 13 625 Salaries payable 17 45 TOTAL CURRENT LIABILITIES 17 13 670 RETAINED EARNINGS Unreserved 205 348 101 250 TOTAL LIABILITIES AND RETAINED EARNINGS $ 205 365 $ 114920 -57- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-14 STORMW A TER MANAGEMENT UTILITY FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1996 AND 1995 1996 1995 OPERATING REVENUE Charges for services $ 44491 $ 44 336 OPERATING EXPENSES Personal services 1359 10 548 Supplies 6109 Repair and maintenance 729 Professional services 424 Contracted services 13 250 13 625 TOTAL OPERATING EXPENSES 15033 31011 OPERATING INCOME 29 458 13 325 NONOPERATING REVENUE Interest on investments 4448 4647 INCOME BEFORE OPERATING TRANSFERS 33 906 17 972 OPERATING TRANSFERS FROM OTHER FUNDS 110 000 10 000 OPERATING TRANSFERS TO OTHER FUNDS (39 808) NET INCOME 104098 27 972 RETAINED EARNINGS, JANUARY 1 101 250 73 278 RETAINED EARNINGS, DECEMBER 31 $ 205 348 $ 101 250 -58- -59- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I -60- CITY OF SHOREWOOD, MINNESOTA Exhibit D-17 LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1996 AND 1995 OPERATING REVENUE Sales Less cost of sales 1996 1995 $1 705040 $1473403 (1 362 986) (1165021) 342 054 308 382 179397 176 103 8370 9621 10376 9565 2381 2062 1923 2803 13 692 13228 24239 25 269 113 514 92 863 9159 9594 11 825 8698 374876 349 806 (32 822) (41424 ) 5902 2840 (1 483) 31 4419 2871 (28 403 ) (38 553 ) 170 000 (200 000) (28 403 ) (68 553) 364 627 433 180 $ 336 224 $ 364 627 TOTAL OPERATING REVENUE OPERATING EXPENSES Personal services Supplies Depreciation Professional services Contracted services Insurance Utilities Rent Advertising Other TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUE (EXPENSES) Interest on investments Other income TOTAL NONOPERATING REVENUE (EXPENSES) LOSS BEFORE OPERATING TRANSFERS OPERATING TRANSFERS FROM OTHER FUNDS OPERATING TRANSFERS TO OTHER FUNDS NET LOSS RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 -61- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-18 LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1996 AND 1995 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES Operating loss $ (32 822) $ (41424) Other income related to operations (1483) 31 Adjustments to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 10376 9565 (Increase) decrease in assets - Accrued interest receivable 3272 3648 Accounts receivable 1483 Due from other funds 34 411 (34411 ) Inventories (24291 ) (104032) Prepaid items (186 ) (4957) Increase (decrease) in liabilities - Accounts and contracts payable (5381 ) (734 ) Salaries and compensated absences payable 3453 1001 Deferred revenue (34411 ) 34 411 CASH USED BY OPERATING ACTIVITIES (45579) (136 902) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds 170 000 Operating transfers to other funds (200 000) CASH FLOWS USED BY NONCAPIT AL FINANCING ACTIVITIES (30000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets (3 097) (75 875) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 5902 2840 DECREASE IN CASH AND CASH EQUIVALENTS (42774 ) (239937) CASH AND CASH EQUIVALENTS, JANUARY 1 95 150 335 087 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 52376 $ 95 150 -62- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING BALANCE SHEETS DECEMBER 31, 1996 AND 1995 Tonka Bay 1996 1995 ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Due from other funds Inventories, at cost Prepaid items $ 65401 1012 49 822 2722 118 957 2250 (19) 2231 $ 121 188 TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Due to other funds $ 20 625 2877 TOTAL CURRENT LIABILITIES RETAINED EARNINGS Unreserved 23 502 97 686 TOTAL LIABILITIES AND RETAINED EARNINGS $ 121 188 -63- $ 61490 2867 42351 2594 109302 $ 109302 $ 19980 1026 21 006 88 296 $ 109302 1483 98 981 3667 104 131 75 513 (7055) 68 458 $ 172 589 I I I I I I I I I I I I I I I I I I I Store I 1996 1995 $(101 675) $ 112 395 4 095 14815 75 875 (14 824) 61 051 $ 75866 $ 22 667 1823 24 490 51376 $ 75866 $ 25 428 1438 34 411 61277 111 312 $172589 I I I I I I I I I I I I I I I I I I I Exhibit D-19 Store II Total 1996 1995 1996 1995 $ 88 650 $ 33 660 $ 52376 $ 95 150 1072 2489 2084 5356 1483 34 411 34 411 119 521 Il6 Il5 281 738 257447 4204 4 574 II 021 10 835 213 447 191249 347219 404 682 22 135 21 650 100 260 97 163 (15367) (12 779) (30210) (19834) 6768 8871 70 050 77 329 $ 220 215 $ 200 120 $ 417 269 $ 482 OIl $ 30476 $ 33741 $ 73768 $ 79 149 2577 1360 7277 3824 34 411 33 053 35 101 81045 Il7384 187 162 165019 336 224 364 627 $ 220 215 $ 200 120 $ 417 269 $ 482 OIl -64- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1996 AND 1995 Tonka Bay Store I 1996 1995 1996 1995 OPERATING REVENUE Sales $ 473 557 $ 439 104 $ 517 863 $ 373862 Less cost of good sold (375 769) (345 540) (413067) 994916) GROSS PROFIT 97 788 93 564 104 796 78 946 OPERATING EXPENSES Personal services 56 090 57 128 59 976 59 233 Supplies 1445 1050 3524 2828 Depreciation 19 7769 7055 Professional services 877 1 011 752 40 Contracted services 1 186 1440 320 583 Insurance 3779 3676 4492 3 185 Utilities 7590 7592 8647 8973 Rent 13 843 13 258 70 954 48 821 Advertising 2396 2606 3682 3396 Other 3518 2421 3673 3534 TOTAL OPERATING EXPENSES 90 743 90 182 163789 137648 OPERATING INCOME (LOSS) 7045 3382 (58 993 ) (58 702) NONOPERATING REVENUE (EXPENSES) Interest on investments 2664 509 14 Other income (expense) (319) 2 (943 ) TOTAL NONOPERATING REVENUE (EXPENSES) 2 345 511 (943 ) 14 INCOME (LOSS) BEFORE TRANSFERS 9390 3893 (59936) (58688) OPERATING TRANSFERS FROM OTHER FUNDS 170 000 OPERATING TRANSFERS TO OTHER FUNDS (150000) NET INCOME (LOSS) 9390 (146 107) (59936) 111 312 RETAINED EARNINGS, JANUARY 1 88 296 234 403 111 312 RETAINED EARNINGS, DECEMBER 31 $ 97 686 $ 88 296 $ 51 376 $ 111312 -65- I I I I I I I I I I I I I I I I I I I I I Exhibit D-20 I Store II Total 1996 1995 1996 1995 I $ 713 620 $ 660437 $ 1 705 040 $ 1 473 403 (574 150) (524 565) (1 362 986) (1 165 021) 139470 135 872 342 054 308 382 I 63331 59 742 179397 176 103 3401 5743 8370 9621 I 2588 2510 10 376 9565 752 1011 2381 2062 417 780 1923 2803 5421 6367 13 692 13 228 I 8002 8704 24239 25 269 28 717 30 784 113 514 92 863 3081 3592 9159 9594 4634 2743 11 825 8698 I 120 344 121 976 374 876 349 806 I 19 126 13 896 (32 822) (41424 ) 3238 2317 5902 2840 I (221 ) 29 (1483) 31 3 017 2346 4419 2871 I 22 143 16242 (28 403) (38 553 ) 170 000 I (50 000) (200 000) 22 143 (33 758) (28 403 ) (68553 ) I 165019 198777 364 627 433 180 I $ 187 162 $ 165019 $ 336 224 $ 364 627 I I I I I -66- I CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND I COMBINING SCHEDULES OF CASH FLOWS YEARS ENDED DECEMBER 31, 1996 AND 1995 Tonka Bay Store I I 1996 1995 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ 7045 $ 3382 $ (58 993 ) $ (58 702) I Other income (expense) related to operations (319) 2 (943 ) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 19 7769 7055 I (Increase) decrease in assets - Accrued interest receivable 1855 3958 (l483) Accounts receivable 1483 Due from other funds I Inventory (7471 ) 4712 (13 414) (98981 ) Prepaid items (128 ) (2 594 ) (428) (3 667) Increase (decrease) in liabilities- I Accounts and contracts payable 645 (28 366) (2761 ) 25 428 Salaries and compensated absences payable I 851 2 385 1438 Deferred revenue (34 411) 34 411 CASH FLOWS PROVIDED (USED) BY I OPERATING ACTIVITIES 3497 (I8 904) (I01313) (94501 ) CASH FLOWS FROM NONCAPITAL FINANCING I ACTIVITIES Operating transfers from other funds 170 000 Operating transfers to other funds (I50 000) CASH FLOWS PROVIDED (USED) BY I NONCAPITAL FINANCING ACTIVITIES (I 50 000) 170 000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING I ACTIVITIES Acquisition of fixed assets (2 250) (362 ) (75 513) CASH FLOWS FROM INVESTING ACTIVITIES I Interest on investments 2 664 509 14 INCREASE (DECREASE) IN CASH AND CASH I EQUIVALENTS 3911 (l68395) (l01675) CASH AND CASH EQUIVALENTS, JANUARY I 61 490 229 885 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 65401 $ 61490 $ (101 675) $ I I I I I -67- I I I Exhibit D-21 I Store II Totals 1996 1995 1996 1995 I $ 19 126 $ 13 896 $ (32822) $ (41424) (221 ) 29 (1483) 31 I 2588 2510 10 376 9565 1417 1 173 3272 3648 1483 I 34 411 (34411 ) 34 411 (34411) (3 406) (9 763 ) (24291) (104032) 370 1304 (186) (4957) I (3 265) 2204 (5381 ) (734 ) 1217 (439) 3453 1001 (34 411 ) 34 411 I 52 237 (23 497) (45579) (136902) I 170 000 (50000) (200 000) I (50000 ) (30000) I (485) (362 ) (3097) (75 875) I 3238 2317 5902 2840 I 54 990 (71542) (42774 ) (239937) 33660 105 202 95 150 335 087 I $ 88 650 $ 33 660 $ 52376 $ 95 150 I I I I I -68- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA AGENCY FUNDS Agency funds are established to account for asS((ts held by the City as an agent for others. Deferred Compensation. Furtd - This fund is used to account for employee payroll deferments and the related liability, that are deposited with outside companies in accordance with the provisions of Internal Revenue Code Section 457. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED DECEMBER 31, 1996 Balance January I Additions ASSETS Investments for deferred compensation $ 187409 $ 46 351 LIABILITIES Deferred compensation benefits payable $ 187409 $ 46 351 -69- Deductions $ 3 620 $ 3 620 Exhibit E-l Balance December 31 $ 230 140 $ 230 140 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those fixed assets of a governmental jurisdiction which are not accounted for in an enterprise fund. To be classified as a fixed asset in this category, a specific piece of property must meet three attributes: 1 . Tangible nature 2. A life longer than the current fiscal year 3 . A significant value I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE DECEMBER 31, 1996 AND 1995 Exhibit F-l GENERAL FIXED ASSETS Land Buildings and structures Improvements other than buildings Furniture and equipment 1996 1995 $ 456 826 $ 456 826 1 322 073 1 322 073 1314258 1 268 345 1 191296 1076774 $ 4 284 453 $ 4124018 TOTAL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS General fund Capital projects funds $ 1 082 870 3201 583 $ 1 076 774 3 047244 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 4 284 453 $ 4124018 -70- CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY DECEMBER 31, 1996 Exhibit F-2 Buildings Improvements Furniture and Other than and Total Land Structures Buildings Equipment FUNCTION General government $ 671 034 $ $ 305372 $ 161 504 $ 204 158 Public works 2244921 153500 919581 184702 987 138 Culture and recreation 1 368 498 303 326 97 120 968 052 TOTAL GENERAL FIXED ASSETS $ 4 284 453 $ 456 826 $1 322 073 $ 1314258 $1 191296 -71- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION YEAR ENDED DECEMBER 31, 1996 Exhibit F-3 General General Fixed Assets Fixed Assets January 1 Additions Deductions December 31 General government $ 664938 $ 20 961 $ 14 865 $ 671 034 Public works 2 135 077 193 839 83 995 2244921 Culture and recreation I 324 003 44 495 1 368 498 TOTAL GENERAL FIXED ASSETS $ 4 124018 $ 259 295 $ 98 860 $ 4 284 453 -72- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP General obligation bonds and other forms of long -term debt supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. The amount of unmatured long-term indebtedness which is backed by the full faith and credit of the government (excluding enterprise fund debt) is recorded and accounted for in a separate self-balancing account group titled the "General Long-Term Debt Account Group." Also, this debt group includes certain liabilities not expected t() be liquidated with expendable availaQle financial resources. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT DECEMBER 31, 1996 AND 1995 Exhibit G-l 1996 1995 AMOUNT AVAILABLE FOR DEBT SERVICE Debt service funds $ 503 635 $ 1419732 AMOUNTS TO BE PROVIDED Future tax levies, assessments and tax increments I 459 209 I 111 631 TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED $ 1 962 844 $ 2 531 363 GENERAL LONG-TERM DEBT PAYABLE Compensated absences payable Lease purchase payable General obligation special assessment bonds Tax increment revenue bonds $ 29 344 $ 21 863 311 000 822 500 1 589 500 800 000 920 000 $ 1 962 844 $ 2 531 363 TOTAL GENERAL LONG-TERM DEBT PAYABLE -73- SPECIAL ASSESSMENT BONDS G.O. Improvement bonds of 1991 G.O. Improvement bonds of 1991 G.O. Improvement bonds of 1993 TOTAL TAX INCREMENT REVENUE BONDS Tax increment revenue bonds of 1991 REVENUE BONDS G.O. Water Revenue bonds G.O. Water Revenue bonds TOTAL TOTAL CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31, 1996 Interest Rates 5.20-5.85 8.00 3.75-4.80 9.00 3.90-5.50 4.00-5.40 -74- Issue Date 11-01-91 9-01-91 12-01-93 5-01-91 11-01-95 11-01-96 Final Maturity Date I I I I I I I I I I I I I I I I I I I 2-01-02 2-01-97 2-01-04 2-01-00 2-01-11 2-01-12 I V'l t"- I ; OO~ ~ 0 00 I j ~I 00 0 00 ......-0 0V'l0 0 00 - o t"- V'l 0 00 .- ("1 t"- 'V 0 NI,O N '" V'l 00 0\ 00 ~ - ~ - -0 OO~ ~ ~ ; '" <u 000 I I "0 e 0V'l0 0 <u 0("1 <u O\N II) -0 ("1 ~ ~ ~I OO~ ~ ~ o~ ~ I <u <u 00 00 .!::l ;:; 00 00 ... '" 0- 0 o '" -5- :("1N N 0\ ;:; d - < ~ ------------------- CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 1996 Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20 II 2012 Total Total Bonds Principal Interest I I I I I I I I I I I I I I I I I I I $ 467 500 520 000 515000 520 000 310 000 300 000 205 000 210 000 180 000 190 000 185000 185000 185000 190 000 180 000 60 000 $ 295 194 333 492 343 087 355 636 III 515 96 553 84 334 74 570 65 244 56 240 46 945 37 603 28 040 18 115 8135 1620 $4 402 500 $1 956323 * Tax increment collections will be remitted to the bond holders. Bonds will periodically be called in numerical sequence and redeemed at their accredited value as tax increment collections allow. -76- I I I I I I I I I I I I I I I I I I I Exhibit 1-1 G.O. Special Tax Increment G.O. Water Assessment Bonds Revenue Bonds* Revenue Bonds Principal Interest Principal Interest Principal Interest $ 142500 $ 39 134 $ 200 000 $ 136869 $ 125000 $ 119 191 135 000 32 250 200 000 167859 185 000 133 383 135 000 25 443 200 000 201 710 180 000 115 934 130 000 18588 200 000 229 028 190 000 108 020 125 000 11 776 185 000 99 739 115000 5139 185000 91414 20 000 1430 185 000 82 904 20 000 480 190 000 74 090 180 000 65 244 190 000 56 240 185 000 46 945 185000 37603 185 000 28 040 190 000 18 115 180 000 8135 60 000 1620 $ 822 500 $ 134 240 $ 800 000 $ 735 466 $2 780 000 $1086617 -77- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION III STATISTICAL SECTION I I I I I I I I I I I I I I I I I I I 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 CITY OF SHOREWOOD, MINNESOTA Table 1 GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION LAST TEN FISCAL YEARS Total General Public Public Culture and Mise! Expenditures Government Safety Works Recreation Transfers $1651927 $ 569 098 $481 603 $ 532 902 $ 68324 $ 1 898 594 646 923 523 717 669990 57 964 1 794 684 610 659 503 542 570 981 83 502 26 000 2065011 616 929 532 658 799 543 115 881 2241 781 665 152 548 343 375 406 142 168 510 712 2301 950 654 085 571 077 434015 116173 526600 2 184 260 668 410 580 153 436 224 119473 380000 2 536 943 755 097 618047 433 699 128 600 601 500 2326231 723 098 650 703 432 759 115 446 404 225 2479 151 782 466 689 904 472 607 109 988 424 186 Fiscal Year -78- CITY OF SHOREWOOD, MINNESOTA Table 2 GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE LAST TEN FISCAL YEARS Total General Licenses Fiscal General Fund Property and Inter- Misc/ Year Revenues Taxes Permits Governmental Fines Transfers 1987 $1 837056 $ 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 I 976961 1 118 886 207 129 405 022 105 244 140680 1990 2 367 995 1 437 140 203 828 273 780 124 234 329013 1991 2 237 115 1 627 874 168 560 153681 101 200 185 800 1992 2 307 389 1 576 158 175 123 283 689 89 960 182 459 1993 2429 910 1 515633 247557 426102 70 135 170 483 1994 2531339 1 487 398 256 243 441 040 73 998 272 660 1995 2378009 1 489 822 184857 440 720 68 765 193 845 1996 2 457 755 1 569 653 205 459 427 468 80 826 174 349 -79- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 3 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Percentage Collection Percentage Collection of Total Fiscal Total of Current of Levy of Prior Total Collections Year Levv Year's Levv Collected Year's Levv Collections to Levv 1987 $1 254420 $1 211 819 96.60% $ 32 265 $1 244084 99.18% 1988 1 293 689 1 236 536 95.58 27 898 1 264 434 97.74 1989 1 300881 1 249 332 96.04 46 405 1 295 737 99.61 1990 1 684 576 1602385 95.12 48 448 1650833 98.00 1991 1 856 988 *1 793 402 96.58 41 801 1 835 203 98.83 1992 1 864 577 1 819238 97.57 55917 1 875 155 100.57 1993 1 932 454 1 908 428 98.76 51464 1 959 892 101.42 1994 1518735 1505212 99.11 13 886 1519098 100.02 1995 1 518 108 1501 389 98.90 13 999 1 515 388 99.82 1996 1 598713 1 577 353 98.66 16 946 1 594 299 99.72 (1) Includes state paid property tax credits * Includes $66,971 state aid reduction from the Homestead and Agricultural Credit Aid. 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. -80- I CITY OF SHOREWOOD, MINNESOTA ASSESSED VALUATION, TAX LEVIES AND MILL RATES (shown by year of tax collectibility) I I 1996 1995 1994 1993 (1) & (2) (1) & (2) (1) & (2) (1) & (2) Assessed va1uation/Tax capacity $9 115 960 $8 045 468 $7396 104 $7092917 Contribution to fiscal disparities pool (178279) (185232) (205 973 ) (227 686) Receivable from fiscal disparities pool 332 110 310337 375 309 396081 Tax increment (166 094) (22195) (317) Taxable valuation/Tota1 tax capacity $9 103697 $8 148378 $7565 123 $7261 312 I I I I Tax levies General Debt service Total (3) $1 573930 $1 491 990 $1491 888 $1 909253 24 783 26 118 26 847 23 201 $1 598713 $1 518 108 $1 518735 $1 932454 I I Mill rates/Tax Capacity Rate General Debt service 17.252Rate .179 18.256Rate .215 19.655Rate .249 20.638Rate .159 Total 17.431Rate I 8.471 Rate 19.904Rate 20.797Rate I I I (1) As a result of 1988 legislation assessed valuation has been replaced by tax capacity valuations. It is calculated based upon a state mandated computation from the estimated market value. The term, mill rate, has been replaced with the term, tax capacity rate, as a ~etisult of.the .1988 ledg.islation. 1f986-1988 .informdation is s~ted in terms of assessed valuation and mill I rates. 1989-1995 m ormatIOn IS state m terms 0 tax capacity an tax capacity rates. (2) The debt service levy includes $8,508 for 1996, $8,568 for 1995, $8,022 for 1994, $8,526 for 1993 and $8,414 for 1992, I levied for the retirement of Storm Sewer District No.2 improvement bonds. Storm Sewer District No.2 was established by the City of Shore wood 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 fmance the improvements within the District and is not reflected in the tax rates I above. Table 5 reports the tax rate of this District separately. (3) Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be I reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. I -81- I I CITY OF SHOREWOOD, MINNESOTA PROPERTY TAX MILL RATES/TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1000 OF ASSESSED VALUE FOR YEARS 1987-1988 AND TAX CAPACITY IN 1989-1996) Year (1) Taxes School District Watershed District Payable City County No. 276 No. 277 No.3 No.4 Miscellaneous 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 1996 17.431 (2) 37.270 76.340 62.418 (3) 1.533 .864 6.390 (1) Includes vocational school (2) Information for 1989-1996 is stated in terms of tax capacity rates due to 1988 legislative changes as explained in Table 4. (3) Includes market value levy of .107. -83- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Table 5 Totals School District No. 276 School Storm Watershed Dist. 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.3 121.559 121.900 121.900 113.573 126.012 126.490 126.490 119.122 108.357 108.727 108.727 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 13.956 138.964 138.295 152.251 125.042 -84- CITY OF SHOREWOOD, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1996 Table 6 Percentage 1996 Tax of Total Taxpayer Type of Business Capacity Tax Capacity Northern States Power Company Utility $ 123 639 1.36% Ryan Construction Company Shopping Center 75 118 .83 Minnetonka Country Club Country Club 73 375 .81 Minnegasco Utility 65 325 .72 Two S Properties Commercial 41 663 .46 MFT, Inc. Residential 32 100 .35 Waterford Partners, LLC Commercial 29 169 .32 Individual Residential 23 600 .26 Individual Residential 22 380 .25 Fina Serve, Inc. Commercial 22 408 .25 Total $ 508 777 .i..6.l -85- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 CITY OF SHOREWOOD, MINNESOTA Table 7 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Percentage Collection Percentage Collection of Total Total of Current of Levy of Prior Total Collections Levv Year's Levv Collected Year's Levv Collections to Levv $ 551 886 $ 539 633 97.78% $ 32 122 $ 571 755 103.60% 644 367 637874 98.99 33 724 671 598 104.23 500 116 497 733 99.52 66 916 564 649 112.90 457 384 444 080 97.09 53 452 497 532 108.78 365 577 345 886 94.61 28 677 374563 102.46 362 352 317 103 87.51 19461 336 564 92.88 231 800 222 842 96.14 47372 270214 116.57 198729 185061 93.12 6025 191086 96.15 170 157 159018 93.45 12 896 171 914 101.03 233 219 197667 84.76 6660 204 327 87.61 Fiscal Year -86- (2) (3) I CITY OF SHOREWOOD, MINNESOTA COMPUTA nON OF LEGAL DEBT MARGIN DECEMBER 31, 1996 Table 8 I Market Value $ 517983900 I Debt Limit: 2.0% of market value (Note A) Amount of Debt Applicable to Debt Limit: $ 10359678 Total Bonded Debt Less, (Note B) Special Assessment Bonds General Obligation Water Revenue Bonds Tax Increment Revenue Bonds $ 4 402 500 I (822 500) (2 780 000) (800 000) I Total Debt Applicable to Debt Limit I Legal Debt Margin $ 10 359 678 Note (A): M.S.A. Section 475.53 (Limit on Net Debt) I "Subdivision I. Generally. Except as otherwise provided in sections 475.51 to 475.75, no municipality, except a school district I or a city of the first class, shall incur or be subject to a net debt in excess of 2.0 percent of the market value of taxable property in the municipality." Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid) I "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." I M.S.A. Section 475.51 (Definitions:) I "Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially 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. I Warrants or orders having no defmite or fixed maturity. I (4) Obligations issued to create or maintain a permanent improvement revolving fund. Obligations payable wholly from the income from revenue-producing conveniences. I (5) (6) (7) 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. I 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. I 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." I * After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24. I -87- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Table 9 Fiscal Year (1) Assessed Value/Tax Capacity Ratio of Net Bonded Debt to Assessed Values/ Tax Capacity Net Bonded Debt Per- Capita Less Amount Reserved for Debt Service Estimated Population (2) Gross Bonded Debt Net Bonded Debt 1987 1988 $53 059 674 56 589 857 595.54 361.60 $4975000 4 530 000 $ 2 044 326 2 688 009 $2 930 674 1841991 4921 5094 .0552: I .0325:1 1989 5815 7 833 998 2 990 000 I 510303 1479697 .1889:1 254.46 1990 5917 7197406 2 720 000 I 902 837 817163 .1135:1 138.10 1991 6000 8 070 339 3411 000 2311 859 1 099 141 .1362:1 183.19 1992 6135 7859 115 2 496 000 1 742 742 753 258 .0958: 1 122.78 1993 6322 7261312 2 546 500 1999197 547303 .0754:1 86.57 1994 6430 7 565 123 1 850 500 I 485 579 364921 .0482: 1 56.75 1995 6614 8 148378 3 524 500 1419732 2 104 768 .2583:1 318.17 1996 6794 9 103 697 3 602 500 503 635 3 098 865 .3404:1 456.12 (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. 1989-1996 information is stated in terms of tax capacity and tax capacity rates. (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. -88- 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 Total Total General to General Year Principal Interest Debt Service Expenditures* Expenditures 1987 $ I 840 000 (2) $ 273 709 $ 2 113 709 $ 1651 927 127.95% 1988 435 000 274 636 709 636 I 898 594 37.38 1989 2625000 (3) 253 113 2878 115 I 794 684 160.37 1990 260 000 175098 435 098 2065011 21.07 1991 290000 173 495 463 495 2241 781 20.68 1992 905 000 167 163 I 072 163 2301 950 46.58 1993 264 500 141 889 406389 2 184260 18.61 1994 681 000 (4) 120862 801 862 2 536 943 31.61 1995 231 000 99 823 330 823 2 326 231 14.22 1996 767 000 (5) 72 461 839461 2479151 33.86 I I I I I I I I I I I I I I I I I I I (1) Excludes G.O. Bonds reported in Enterprise Funds and 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. (2) (3) (4) (5) Principal includes bonds refunded in 1987 Principal included bonds defeased in 1989 Principal includes bonds called in 1994 Principal included bonds called in 1996 * Includes General Fund only -89- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 1996 Table II City of Percent of Shorewood Net Debt Debt Applicable Share Total Debt Outstanding ,to City of Debt Direct Debt* City of Shorewood $ 3 602 500 $ 3 098 865 100.00% $ 3 098 865 Overlapping Debt Hennepin County 190955 000 60 904 428 .97 588 644 Hennepin Suburban Park District 16460000 11615904 1.31 152 692 School District #276 61240000 10 470 300 22.66 2372 242 School District #277 13 700 000 12428521 2.10 260514 Metropolitan Council 384 835 000 61 080046 ~ 327 940 Total Overlapping Debt 667 190000 156499 199 ---2.TI 3 702 032 Total Direct and Overlapping Debt $670 792 500 $159598064 4.26% $ 6 800 897 * Direct debt includes all debt backed by the full faith and credit of the City even though it will be financed in part by special assessments or enterprise fund revenues. Tax increment revenue bonds supported only by the tax increments generated within the TIF District are excluded from this computation consistent with Table 9. -90- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 12 REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Net Ratio of Net Fiscal Gross (I) Revenue Debt Service Revenue to Year Revenue Expenses Available Principal Interest Total Debt Service 1987 $ 108043 $ 81 642 $ 26 40 I $ 10000 $ 9578 $ 19 578 1.349 to 1 1988 158474 135 897 22 577 10 000 8834 18 834 1.199 to I 1989 176719 II 0 987 65 732 10 000 8125 18 125 3.627 to I 1990 192682 116 289 76 393 10000 7293 17 293 4.418 to I 1991 172 569 126614 45 955 10 000 6493 16 493 2.786 to I 1992 199891 125714 74 177 10000 5823 15 823 4.688 to I 1993 172 624 139 490 33 134 10 000 4860 14 860 2.230 to I 1994 262 892 159 179 103 173 15000 4035 19035 5.449 to 1 1995 198 566 166 970 31 596 15 000 3486 18 486 1.710 to I 1996 272 678 170 485 102 193 15 000 74473 89 473 1.142 to I (I) Excluding depreciation and interest on bonds -91- I CITY OF SHOREWOOD, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS I LAST TEN FISCAL YEARS I I I I I I I Sources (I) City Planning and Inspection Department I (2) County Assessor's Office (3) 1st State Bank of Excelsior (Bank deposits are not shown for years 1987-1995 as no banks are located within the City limits during this period.) I I I I I I I I -92- I (I) Commercial (I) Construction Residential Construction Fiscal Number Year Value of Units Value 1987 $ 163 $ 23 397 136 1988 401 004 157 29 040 667 1989 89 16949 136 1990 20 000 82 16252990 1991 69 14044 120 1992 55 10899687 1993 102 17 941 776 1994 960 000 86 16530925 1995 2 030 000 40 10 167210 1996 I 350000 37 9 393 436 I I I I I I I I I I I I I I I I I I I (2) Property Value Commercial Residential Total $ 10 317 900 $ 197382800 $ 207 700 700 11 167900 217337000 228 504 900 11 351 300 253 363 500 264714800 II 820 800 299 565 500 311 386 300 11 997 100 341 843 200 353 840 300 12081200 370575 700 382 656 900 II 307 900 391 057000 402 364 900 11338700 413 780 300 425 119 000 9 793 000 453616 100 463 409 100 10 562 200 517983900 528 546 100 Table 13 (3) Bank Deposits $ 40 895 000 -93- I I I I I I I I I I I I I I I I I I I Year of incorporation Form of government Fiscal year begins Area of city Population 1995 Estimated 1990 Census 1980 Census 1970 Census Miles of streets and alleys City streets Municipal state aid streets County roads State highway Sewer Lift stations Sewer rates - residential Miles of sewer lines Number of street lights Building permits issued in 1996 Number of permits Value CITY OF SHOREWOOD, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31, 1996 Table 14 1956 Council-Administrator Adopted May 14, 1956 January 1 6.0 Square Miles 6,794 5,917 4,646 4,223 38.1 9.3 1.7 2.7 15 $65.00/quarter 55.7 174 610 $16,288,483 Fire protection: Contracted services with Mound and Excelsior Police protection: Contracted services with South Lake Minnetonka Police Department Parks Number Acres Water Number of connections Average daily consumption Miles of watermain Daily capacity Number of fIre hydrants Water rate per thousand gallons Employees Regular Part-time/seasonal Total Elections Registered voters last election Number of votes cast last election Percentage of registered voters voting 5 95.8 985 267,800 gallons 14.7 4,680,000 gallons 165 $1.45/1000 gallons 20 20 40 5,066 4,262 84.1% -94-