1997 - Comp. Annual Financial Report
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CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 1997
JAMES C. HURM, CITY ADMINISTRATQR
REPORT PREPARED BY: DEPARTMENT OF FINANCE
ALAN J. ROLEK, FINANCE DIRECTOR/TREASURER
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1997
Exhibit Pa.e;e No.
I. INTRODUCTORY SECTION
Elected and Appointed Officials
Organizational Chart
Letter of Transmittal I -X
Certificate of Achievement for Excellence in Financial Reporting
II. FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups 1 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 - 22
Combinin.e; and Individual Fund and Account Group Financial Statements and Schedules
General Fund
Comparative Balance Sheets A-I 23
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual A-2 24 - 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 - 36
Combining Statement of Revenue, Expenditures and Changes in Fund Balance
(Deficit) C-2 37 - 39
Enterprise Funds
Combining Balance Sheet D-l 40 - 41
Combining Statement of Revenue, Expenses and Changes in Retained Earnings D-2 42 - 43
Combining Statement of Cash Flows D-3 44 - 45
Water Fund
Comparative Balance Sheets D-4 46
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
(Deficit) D-5 47
Comparative Statements of Cash Flows D-6 48
Sewer Fund
Comparative Balance Sheets D-7 49
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D-8 50
Comparative Statements of Cash Flows D-9 51
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31,1997
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
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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
(Deficit)
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
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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 RatesfTax Capacity Rates - Direct and Overlapping Governments
Principal T~1>ayers
Special Assessment Levies and Collections
Computation of Legal Debt Margin
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage
Property Value, Construction and Bank Deposits
Miscellaneous Statistics
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Exhibit PaJ1;e No.
D-10 52
D-11 53
D-12 54
D-13 55
D-14 56
D-15 57
D-16 58
D-17 59
D-18 60
D-19 61 - 62
D-20 63 - 64
D-21 65 - 66
E-l 67
F-l 68
F-2 69
F-3 70
G-l 71
G-2 72 - 73
G-3 74 - 75
1 76
2 77
3 78
4 79 - 80
5 81 - 82
6 83
7 84
8 85
9 86
10 87
11 88
12 89
13 90 - 91
14 92
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CITY OF SHOREWOOD, MINNESOTA
SECTION I
INTRODUCTORY SECTION
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CITY OF SHOREWOOD, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31,1997
Elected Officials
Term
ExPires
Tom Dahlberg
Gerald O'Neill
Jennifer McCarty
Kristi Stover
John Garfunkel
Mayor
Council Member
Council Member
Council Member
Council Member
1998
1998
1998
2000
2000
Appointed Officials
James C. Hurm
Alan J. Rolek
City Administrator
Finance Directorrrreasurer
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ORGANIZATIONAL CHART - CITY OF SHOREWOOD
I CITIZENS I
I CITY ATTORNEY ~:: - ....... CITY COUNCIL BOARDS &
COMMISSIONS
"- - PLANNING COMMISSION
CITY ADMINISTRATOR I - PARK COMMISSION
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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 - Patro I
- 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, 1997
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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
May 8, 1998
Honorable Mayor and Members of the City Council
City of Shorewood, Minnesota
Councilmembers:
The Comprehensive Annual Financial Report of the City of
Shorewood, Minnesota for the fiscal year ended December 31, 1997,
is hereby submitted. Responsibility for both the accuracy of the
data, and the completeness and fairness of the presentation,
including all disclosures, rests with thE;! City. To the best of
our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designated to
present fairly the financial position and results of operations of
the various funds and account groups of the City. All disclosures
necessary to enable the reader to gain an understanding of the
City's financial activities have been included.
The Comprehensive Annual Financial Report is presented in three
sections: Introductory, Financial and Statistical. The
Introductory section includes this transmittal letter, the City's
organizational chart and a list of City officials. The Financial
section includes the general purpose financial statements and the
combining and individual fund and account group financial
statements and schedules, along with the auditor 's report on the
financial statements. The Statistical secj::.ion includes selected
financial and demographic information, generally presented on a
multi-year basis.
The organization, form ... and contents of this report were prepared
in accordance with the standards 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 Offrce.
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 residents and
businesses wi th 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
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tJ PRINTED ON RECYCLED PAPER
utility, sewer utility, recycling utility,
utility and an aff-sale liquar aperatian,
store sites.
starmwater management
consisting af three
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The criteria used in determining the campanent units to be
included with the City as part af its reparting entity is
cansistent with thase required by the Gavernmental Accaunting
Standards Board Statement No.. 14, "The Financial Reparting
Entity". Based an these criteria, the city has no. companent
units. All funds and accaunt graups af the City are included iQ
this repart, and no. campanent units are reparted herein.
ECONOMIC CONDITION AND OUTLOOK
The City af Sharewaad is a suburb af the City af Minneapalis and
is lacated 25 miles sauthwest af the central business district an
the sauthern share af. Lake Minnetanka. The City is predaminantly
a residE;:!ntial cammunity with limited cammerci.al businesses and two.
cammercial shapping malls. The City is 6 square miles in area and
has an estimated papulatian af 6,889.
While the City has experienced an accelerated rate af grawth in
residential develapment during the 1980 's, the grawth rate has
slawed during the 1990 's. The City will cantinue to. experience
grawth in it's residential base in the future, but because af the
limited availability af large tracts af land, this will came at a
reduced rate and likely will be smaller develapments than in the
past.
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MAJOR INITIATIVES
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FINANCIAL AND MANAGEMENT EMPHASIS
Emphasis on Governance
The City Cauncil in its le~dership rale is effectively
establishing a facus far city gavernmE;:!nt in Sharewaad. The
Cauncil has cammitted to. a strang set af values by which decisions
are to. be made. It has adapted a Statement af Purpase and has
established averall gaals and expectatians far the City. It has
identified issues facing the City and priaritized them" sa that the
staff can efficiently and effectively allacate time and resaurces.
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The City Cauncil's calendar cansists af three phases. The first
phase is Planning, which includes emplayee and systems
evaluations, review af the previaus years wark plan, review af the
City's Camprehensive Plan Executive Summary, review af the
statements af Purpase and Values, and identificatian and
priaritizatian af issues far the next twelve and twenty-faur
manths.
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The second phase is that of Programming.
Capital Improvement Program is reviewed
priorities established in phase one.
Comprehensive Plan are made based upon the
Each year the five-year
and updated based upon
Any changes to the
phase one decisions.
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The third phase is Budgeting. The operating budget is
established based on decisions made in the first two phases. A
budget format is being utilized which provides information and
analytical data to the City Council and other readers. It defines
departmental missions and sets objectives for the budget year. In
addition, it measures services provided and identifies the net
affect each departmental budget has on property taxes.
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Emphasis on System Improvements
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The City Council acknowledged early in
on communicating with residents is a
1997, they adopted a communications
includes the following:
. Redesign public notices which meet legal requirements yet are
easier to read and understand.
. Redesign the City newsletter and distribute monthly rather
than quarterly, as had been the practice previously.
. Prepare Press releases on current issues, projects and
special events.
. Emphasize Council
meetings.
. Provide opportunities for unrestricted citizen input at City
Council meetings.
. Improve the city's home page to make it more aesthetically
pleasing and packed with useful information.
. Util.ize the cable access channel bulletin board to inform the
public of city activities.
. Promote the public usage of the "Shoreline" phone message
line.
. Produce numerous educational brochures to be mailed with the
monthly newsletter.
. Provide public feedback forms for those who have had contact
with the City to en.courage the public to share their
experience with city services and personnel.
. Utilize "communication strategy" sheets to encourage all
involved with the City to think about and plan for the best
way to communicate with residents on city issues.
. Provide a voice mail information system accessible by
residents 24 hours a day to receive timely information on
city services and events.
1997 that a strong emphasis
top priority. In March,
plan for the City which
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open
forums
and
informal
information
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Emphasis on Public Improvements
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The City is continuing to plan for and make public improvements in
a number of areas. A process is underway to update the City's
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Comprehensive Plan. The revised plan will be a guide in
addressing future zoning and development issues.
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The Stormwater Management Utility is a funding mechanism for small
drainage improvement proj ects and for the City's share of major
drainage projects. A number of small projects are updertaken each
year. The fund had retained earnings of $251,401 at the end of
1997, which is designated for future "storrnwater management
planning and drainage projects.
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The City continued its park improvement program in 1997. A picnic
shelter, grills and drinking fountains were provided for the
family area of Freeman Park. In addition, the Park Commission
initiated a process to review the public's interest trails within
the City.
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The Southshore Senior Community Center was opened in August of
1997. The City of Shorewood had taken a leadership role in
bringing five area cities together in this project. The Center,
which is also an area hub for Metropolitan Dial-a-Ride services,
is located at the Shorewood City Hall/Badger Park complex.
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Emphasis on Efficiently, Effectively Meeting Service Needs
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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 City has various contractual arrangements with other
governmental jurisdictions and with private enterprise for
providing many of these services. As an active participant in the
Lake Minnetonka Area Cooperating Cities group, the City is
involved in cooperative employee training, subregional housing
planning, animal control and other areas of mutual concern. The
Lake Minnetonka area cities continue to work jointly to address
these mutual problems.
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FINANCIAL INFORMATION
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INTERNAL CONTROLS
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Management of the City is responsible for establishing and
maintaining an internal control structure in the accounting system
designed to ensure that the assets of the City are protected from
loss, theft or misuse and to ensure that fair, reliable and
accurate accounting data is compiled to allow for the preparation
of financial statements in conformity with generally accepted
accounting principles. The internal control structure is designed
to provide reasonable,. but not absolute, assurance that these
objectives are met. The concept of reasonable assurance
recognizes that: 1) the cost of a control should not exceed the
benefits; 2) the valuation of costs and benefits requires
estimates and judgments by management. As part of the City 's
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annual audit, the internal
extent necessary for audit
when needed.
control
purposes
system is evaluated to the
and changes are recornrilended
BUDGETING CONTROLS
The City maintains budgetary controls to ensure compliance with
legal provisions embodied in the annual appropriated budget
approved by the City Council. Activities of the general fund are
included in the annual appropriated budget. The legal level of
budgetary control is established at the department level, but
management control is exercised at the line item level.
As demonstrated by the statements and schedules included in the
financial section of thi~ report, the City continues to meet its
responsibility for sound financial management.
GENERAL GOVERNMENT FUNCTIONS
The following schedule presents a summary of General Fund and Debt
service Fund revenues for the fiscal year ended December 31, 1997
and the amount of increases or decreases ih relation to the prior
year's revenues.
REVENUES AND OTHER
FINANCING SOURCES
AMOUNT
% OF
TOTAL
INCREASE
(DECREASE)
FROM 1996
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General Property Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Special Assessments
Interest on Investments
Miscellaneous
Operating Transfers In.
$2,017,021
236,672
450,185
63,209
76,340
138,127
119,482
40,802
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64.20%
7.53%
14.33%
2.01%
2.43%
4.40%
3.80%
1. 30%
0.00%
$262,855
31,213
22,717
17,964
(4,486)
(7,679)
1,843
7,409
(11,450)
TOTAL
$3,141,838
100.00%
$320,386
Overall revenues increased by $320,386 from 1996 to 1997. The
largest increase in revenue in 1997 from 1996 was in general
property taxes. There are two reasons for this. First, the
prqperty tax levy for general purposes increased by $133,856, or
6.37%, from 1996. This was a .planned, budgeted increase for the
year, and tax collections were on target with budget. Second, tax
increments collections from Tax Increment Financing District No. 1
increased significantly from 1996. This was due to newly
constructed commercial buildings in the district. The new
buildings added new value. to the. district, which resulted in a
corresponding increase in the amount of tax increments generated.
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The increments will be used to retire the revenue bond debt
incurred for improvements wi thin the tax increment district\.
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Licenses and permi ts . increased in 1997 due chiefly to an increase
in building permits issued. Factors contributing to the increase
include the approvq.l of two new housing developments, sustained
low interest rates and mild weather through the year end.
I~tergovernmental revenue grew in 1997 due to an increase in state
issued HACA aid and a special one-time snow removal aid approved
by the legislature for the winter of 1996-97. Increased charge
outs for engineering services contributed to the increase in the
Charges for Services category. Small revenue increases were
experienced in interest revenue due to increased cash flow, and in
miscellaneous revenues.
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Revenues decreased in the special assessment, fines and
forfeitures and operating transfer areas. There have been no new
special assessments projects in the last several years, thus, the
amount of special assessments collected is decreasing each year.
Despite the addition of a full-time traffic control officer, fines
and forfeiture revenue fell for the year. It may be interpreted
that the addition of this position has contributed to a decrease
in traffic violations over the last year. The budgeted transfer
from the Liquor Fund was not made because the operation generated
a net loss on the year.
The following table presents a summary of General Fund and Debt
Service Fund expenditures for the fiscal year ended December 31,
1997 and the amount of increases or decreases in relation to the
prior year's expenditures.
EXPENDITURES AND
OTHER USES
% OF
AMOUNT
TOTAL
CDRRENT:
General Government
Public Safety
Public Works
Parks and Recreation
CAPITAL OUTLAY:
DEBT SERVICE:
Principal
Interest
OPERATING TRANSFERS:
$807,892
743,617
451,756
114,904
14,109
25.97%
23.90%
14.52%
3.69%
0.46%
337,603
197,047
444,395
10.85%
6.33%
14.28%
INCREASE
(DECREASE)
FROM 1996
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$40,500
53,713
(20,851)
5,655
(1,704)
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(429,397)
(68,372)
(140,741)
TOTAL
$3,111,323
100.00%
($561,197)
Overall expenditures were significantly lower in 1997
This is primarily due to a decrease in debt service.
called all outstanding bonds of its Shorewood Oaks
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from 1996.
The City
Improvement
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Bond issue in February, 1996. This caused a one year increase in
debt service expenditures in 1996. Public Works expenditures were
lower in 1997 due to reduced snow removal costs and to applicable
costs being charged to the proper utilities funds rather than to
public works general maintenance as had been the practice in the
past. Capital outlay was also slightly lower in 1997.
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General Government expenditures increased in 1997 from 1996 due
largely to wage adjustments and additional legal services charges.
Public Safety expenditures also increased significantly in 1997.
The South Lake Minnetonka Public Safety Department received a
grant through the federal COPS FAST program in 1995. The amount of
the grant is reduced by 25% each year of the program. The
reduction in the amount of the grant in 1997 resulted in an
increase in the city's share of the cost for the position created
through the grant. The cost of the fire protection contracts also
increased significantly in 1997. The fire contracts increased by
10.9% over 1996. Park and recreation expenditures were also
slightly higher in 1997, reflecting increased maintenance and park
planning costs.
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The City Council has continued its plan to accumulate resources
for future capital equipment and improvement projects. These
amounts were trans ferred to various capital proj ects funds and
will be applied to future equipment acquisitions and capital
improvements. Operating transfers decreased significantly from
1996. Budgeted transfers for capital improvement purposes
increased in 1997 from $424,186 to $444,395 i however, the
additional unbudgeted transfers made in 1996 were one-time
transfers and, therefore, were not repeated in 1997, resulting in
the net decrease.
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GENERAL FUND BALANCE
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The fund balance of the General Fund increq..sed by $55,958 in 1997,
a difference of 3.67/%. The fund balance as of December 31, 1997
is $1,578,910. Economic conditions during the year caused larger
than expected revenues, and employee awareness of budgetary
constraints resulted in lower expenditures, which brought about an
operating surplus. The fund balance is designated for working
capital requirements through the first six months of the year. It
is important for the City to maintain the an adequate fund balance
as a - reserve to meet expenditures in the General fund until
property tpx proceeds are received in July. The fund balance now
stands at 57 .2% of the current year budget. The policy of the
Ci ty 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 buageted in
1997 to lower the property tax levy. This will reduce the fund
balance to $1,507,012, or 54.6% of the 1998 budget, w1:lich still
exceeds acceptable levels.
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The City's enterprise fund activities for 1997 are summarized as
follows:
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ENTERPRISE OPERATION
OPERATING OPERATING OPERATING
REVENUES EXPENSES INCOME (LOSS)
Water $252,866 $272,071 ($19,205)
Sewer 758,124 790,399 (32,275)
Recycling 71,890 72,785 (895)
Stormwater 44,911 21,591 23,320
Liquor
Tonka Bay 97,416 89,636 7,780
Waterford Center 125,130 178,865 (53,735)
Shorewood Plaza 161,328 135,673 25,655
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Generally accepted accounting principles require the depreciation
of contributed assets, which results in net losses in some cases.
However,. past and present City financial practice does not include
the recovery ot 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.
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The" Liquor Fund has experienced a net loss in each of the last
three years. The Waterford Center location, which was opened in
1995, has experienced significant losses each year and is the sole
reason for the net losses in the Liquor Fund. One major reason for
the losses is the excessive floor space and rents which the
operation must support. The Liquor Committee will explore avenues
to eliminate future losses through reduction of floor space or
through the closure of the location. If this is not accomplished
and losses continue, the City may have to consider discontinuing
its liquor operations.
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DEBT ADMINISTRATION
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As of. December 31, 1997, the City's debt outstanding totaled
$3,955,000. Of this total, $680,000 were general obligation
special assessment bonds issued to finance the construction of
sanitary sewer, street, water and storm sewer improvements.
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The City issued $2,780,000 in general obligation water revenue
bonds In 1995 and 1996 to finance water system extensions and
improvements. Total outstanding general obligation water revenue
bonds at year end is $2,655,000. The bonds will be repaid from
special assessments on affected properties and from Water Fund
revenues.
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In 1990, Tax increment revenue bonds of $920,000 were issued for
construction of public improvements in the Waterford commercial
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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 City first received tax increments on this district in
1994. At year end, $620,000 of this issue remained outstanding.
The District will expire in April, 2000.
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The City's bond rating as rated by Moody's Investor Service is
II AlII on general obligation bond issues. Reasons cited by Moody's
for this rating include the development and implementation of a
five-year capital improvement plan, low outstanding debt, sound
financial management, and anticipated maintenance of low debt
ratios by the City.
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CASH MANAGEMENT
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The City of Shorewood subscribes to the IIpooled cashll concept of
investing which means that all funds with cash balances
participate in an investment pool. This permits some .funds to be
overdrawn and other funds to show positive cash balances, with the
City overall maintaining a positive cash balance. This pooled
cash concept provides for investing of greater amounts of money at
more favorable rates. Interest earnings are then allocated to the
participating funds. During 1997, the City of Shorewood earned
$347,117 in interest revenue.
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RISK MANAGEMENT
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The City of Shorewood' s worker's compensation insurance and its
general property and liability coverage are provided through the
League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT
worker's compensation program is a joint self-insurance plan
designed to: lower and stabilize cities worker's compensation costs
and to assure that cities have a source of coverage available.
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Each participating city deposits with the LMCIT its worker's
compensation deposit premium for the policy year. The deposit
premium is calculated using standard manual rates with the
applicable volume discounts and experience modification factor.
From these deposits, LMCIT purcha,ses reinsurance to protect the
program from catastrophic and abnormal payment claims. The
balance of the deposits and reserves are invested) with the
earnings accruing to the benefit. of all participants. LMCIT 's
reserves and rates are reviewed annually by an actuary to help
assure that the program remains financially strong.
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OTHER INFORMATION
INDEPENDENT AUDIT
Minnesota State Statutes require an annual audit of.. the City 's.
accounts by th~ Minnesota State Auditor or by independent
certified public accountants. The auditor's report on the general
purpose financial statements and schedules is included in the
financial section of this report.
CERTIFICATE
REPORTING
OF ACHIEVEMENT
FOR EXCELLENCE
IN F:J;NANCIAL
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The Government Finance Officers Association of the United States
and Canada (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Shorewood for its
comprehensive annual financial report for the fiscal year ended
December 31, 1996.
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In order to be awarded the Certificate of Achieve~ent, a
governmental unit must publish an (easily readable ahd efficiently
organized comprehensive annual financial report, whose contents
conform to program standards. Such reports must satisfy both
generally accepted accounting principles and applicable legal
requirements.
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A Certificate of Achievement is valid for a period of one year
only. We believe our current report continues to conform to the
Certificate of Achievement program requirements, and we are
submitting it to GFOA to determine its eligibility for another
certificate.
ACKNOWLEDGMENTS
We would like to acknowledge the efforts of the city staff,
especially the Finance Department staff, and the City's
independent auditor, without whose assistance an.dcooperation the
timely preparation of the Compreh€msive Annual Financial Report
would not have been possible.
~e..spectfullY/ubmitted,
/, t' () 1
rJ tlL/Y'vt.:-'<'I-_ '-- ,;f:tiilZ-1l.,\
James c. Hurm
City Administrator
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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, 1996
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.
.~K~
Presid:nt 0
jJ#?/~
Executive Director
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CITY OF SHOREWOOD, MINNESOTA
SECTION II
FINANCIAL SECTION
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I 612.835.9090 . Fax 612.835.3261
Certified Public Accountants & Comulwnts
7241 Ohms Lane
Suite 200
Minneapolis. 1\1 N 554:~9
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Shorewood, Minnesota
We have audited the accompanying general purpose financial statements of the City of Shorewood, Minnesota, as of and for
the year ended December 31, 1997 as listed in the table of contents. These general purpose financial statements are the
responsibility of the City of Shorewood, Minnesota's management. Our responsibility is to express an opinion on these
general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial
audits contained in Government Auditing Standards issued by the Comptroller General ofthe United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall general purpose financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the
financial position of the City of Shorewood, Minnesota at December 31,1997 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.
In accordance with Government Auditing Standards, we have also issued a report dated March 12, 1998 on our
consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of
laws, regulations, contracts and grants.
Our audit was performed for the purpose offorming an opinion on the general purpose financial statements taken as a
whole. The combining and individual fund financial statements listed in the table of contents are presented for the purpose
of additional analysis and are not a required part of the general purpose financial statements of the City of Shorewood,
Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial
statements taken as a whole.
March 12, 1998
Minneapolis, Minnesota
(Ju., aw., ~ ~ ~
ABDO, ABDO, EICK & MEYERS, LLP
Certified Public Accountants
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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 - An
Governmental Fund Types
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual-
General Fund
Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All
Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
CITY OF SHOREWOOD , MINNESOTA
COMBlNED BALANCE SHEET
ALL FUND TYPES ACCOUNT GROUPS
DECEMBER 31, 1997
(With Comparative Totals for December 31, 1996)
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Governmental Fund Types
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ASSETS AND OTHER DEBITS
ASSETS
Cash and temporary investments
Investments for deferred compensation plans, at market
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
Amount available in debt service funds
Amounts to be provided for debt retirement
Debt Capital
General Service Projects
$1,639,343 $ 469,150 $1,916,117
27,711 5,638 26,389
44,319 3,150
12,547
3,436 284,950 6,588
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$1,727,356
$ 762,888
$ 1,949,094
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TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Refundable deposits payable
Deferred revenue
Due to other funds
Lease purchase payable
General obligation bonds payable
Tax increment bonds payable
General Obligation revenue bonds payable
Deferred compensation benefits payable
$ 56,216
24,519
32,811
34,900
$
$ 179,380
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284,696
6,588
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TOTAL LIABILITIES
148,446
284,696
185,968
EQUITY AND OTHER CREDITS
Investment in general fixed assets
Contributed capital
Retained earnings
Unreserved
Fund balance (deficit)
Reserved
Unreserved
Designated
Undesignated
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478,192 I
1,578,910 1,774,671
(11,545)
1,578,910 478,192 1,763,126 I
$1,727,356 $ 762,888 $1,949,094
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TOTAL EQUITY AND OTHER CREDITS
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS
See Notes to Financial Statements.
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Exhibit 1
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I Proprietary Fiduciary Totals
Fund Types Fund Type Account Groups (Memorandum Only)
General
I General Long-term
Enterprise Agency Fixed Assets Debt 1997 1996
I $ 2,676,102 $ $ $ $ 6,700,712 $ 6,483,588
294,843 294,843 230,140
37,247 96,985 103,370
113 47,582 48,851
I 249,810 262,357 275,505
1,011,387 1,306,361 1,350,878
139,500 139,500 232,500
I 13,985
322,939 322,939 281,738
17,778 17,778 17,090
8,712,987 4,420,641 13,133,628 13,019,386
I 20,085 20,085 21,489
478,192 478,192 503,635
I 1,151,101 1,151,101 1,459,209
$13,187,948 $ 294,843 $ 4,420,641 $ 1,629,293 $ 23,972,063 $24,041,364
I $ $ $
170,253 $ $ $ 405,849 363,729
I 8,844 33,396 66,759 59,175
32,811 56,188
326,184 437,282
13,985
I 295,897 295,897 311,000
680,000 680,000 822,500
620,000 620,000 800,000
2,655,000 2,655,000 2,780,000
I 294,843 294,843 230,140
2,834,097 294,843 1,629,293 5,377,343 5,873,999
I 4,420,641 4,420,641 4,284,453
9,170,946 9,170,946 8,817,958
I 1,182,905 1,182,905 1,092,822
I 478,192 503,635
3,353,581 3,494,482
(11,545) (25,985)
I 10,353,851 4,420,641 18,594,720 18,167,365
I $13,187,948 $ 294,843 $ 4,420,641 $ 1,629,293 $ 23,972,063 $ 24,041,364
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1997
(With Comparative Totals for the year ended December 31, 1996) I
Debt Capital
General Service Projects I
REVENUE
General property taxes $ 1,703,509 $ 313,512 $
Licenses and permits 236,672 I
Intergovernmental 450,185 132,394
Charges for services 63,209
Fines and forfeitures 76,340 I
Special assessments 138,127 2,287
Interest on investments 99,370 20,112 91,933
Miscellaneous 40,802 72,580 I
TOTAL REVENUE 2,670,087 471,751 299,194
EXPENDITURES I
Current
General government 807,892 I
Public safety 743,617
Public works 451,756
Culture and recreation 114,904
Capital outlay 14,109 916,008 I
Debt service
Principal 15,103 322,500
Interest and service charges 22,441 174,606 I
TOTAL EXPENDITURES 2,169,822 497,106 916,008
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 500,265 (25,355) (616,814) I
OTHER FINANCING SOURCES (USES) I
Operating transfers in 829,895
Lease purchase proceeds
Operating transfers out (444,395) (395,500) I
TOTAL OTHER FINANCING SOURCES (USES) (444,395) 434,395
EXCESS (DEFICIENCY) OF REVENUE AND OTHER I
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES 55,870 (25,355) (182,419)
FUND BALANCE, JANUARY 1 1,522,952 503,635 1,945,545 I
FUND EQUITY TRANSFER IN 88 3,596
FUND EQUITY TRANSFER OUT (88) (3,596) I
FUND BALANCE, DECEMBER 31 $ 1,578,910 $ 478,192 $ 1,763,126
See Notes to Financial Statements. I
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Exhibit 2
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I Totals
(Memorandum Only)
I 1997 1996
$ 2,017,021 $ 1,754,166
I 236,672 205,459
582,579 522,088
63,209 45,245
I 76,340 80,826
140,414 147,210
211,415 227,982
I 113,382 422,133
3,441,032 3,405,109
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I 807,892 767,392
743,617 689,904
451,756 472,607
I 114,904 .109,249
930,117 767,908
337,603 887,000
I 197,047 145,419
3,582,936 3,839,479
I (141,904) (434,370)
I 829,895 579,720
311,000
I (839,895) (825,135)
(10,000) 65,585
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I (151,904) (368,785)
3,972,132 4,340,917
I 3,684 114,342
(3,684) (114,342)
$ 3,820,228 $ 3,972,132
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10,000
(444,395)
(10,000)
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CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31,1997
Exhibit 3
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest on investments
Miscellaneous revenue
Variance -
Favorable
Budget Actual (Unfavorable)
$ 1,705,251 $ 1,703,509 $ (1,742)
174,250 236,672 62,422
447,290 450,185 2,895
65,000 63,209 (1,791)
80,000 76,340 (3,660)
75,000 99,370 24,370
21,500 40,802 19,302
2,568,291 2,670,087 101,796
TOTAL REVENUE
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Capital outlay
Debt service
813,029 807,892 5,137
748,366 743,617 4,749
448,744 451,756 (3,012)
130,226 114,904 15,322
15,981 14,109 1,872
37,550 37,544 6
2,193,896 2,169,822 24,074
374,395 500,265 125,870
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
(444,395)
TOTAL OTHER FINANCING SOURCES (USES)
(434,395)
(444,395)
(10,000)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES
$ (60,000)
55,870
$ 115,870
FUND BALANCE, JANUARY 1
1,522,952
FUND EQUITY TRANSFERS IN
88
FUND BALANCE, DECEMBER 31
$ 1,578,910
See Notes to Financial Statements.
-6.
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CITY OF SHOREWOOD, MINNESOTA Exhibit 4
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31,1997
OPERATING REVENUE
Sales
Less cost of sales
GROSS PROFIT
Charges for services
Permits and connection fees
GROSS PROFIT AND OPERATING REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
MCES disposal charges
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUE (EXPENSE)
General property taxes
Special assessments
Interest on investments
Other income
Interest expense
TOTAL NONOPERATING REVENUE (EXPENSE)
NET INCOME BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS FROM OTHER FUNDS
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
See Notes to Financial Statements.
-7-
Enterprise
$ 1,876,660
(1,492,786)
383,874
1,056,749
71,042
1,511,665
206,030
24,341
13,295
293,414
22,729
190,036
1,245
20,851
12,780
74,186
525,231
140,519
7,154
29,209
1,561,020
(49,355)
15
72,882
135,702
41,576
(120,737)
129,438
80,083
10,000
90,083
1,092,822
$ 1,182,905
CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1997
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating loss to net cash
provided by operating activities:
Other income related to operations
Depreciation and amortization
(Increase) decrease in assets:
Accounts receivable
Special assessments
Inventory
Prepaid items
Increase (decrease) in liabilities:
Accounts payable
Salaries and compensated absences payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal payments on note receivable
Bond principal paid
Interest paid on revenue bonds
Acquisition of fixed assets
Property taxes collected
Special assessments collected
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY I
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 financial resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to
accrual (i.e., 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 general fund is the City's primary operating fund. It accounts for all financial 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 financed by proprietary
funds.
The capital projects funds account for the acquisition offixed 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 previous
to November 30, 1989 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 31,1997
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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Enterprise funds are used to account for those operations that are financed and operated in a manner similar I
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 I
others.
Agency Funds are established to account for cash or other assets held by the city as trustee or agent for I
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 I
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 defined 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 Pay abies
Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the
end of the fiscal year are referred to as either "interfund receivables/payables" (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."
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
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 financial 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
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Compensated Absences
Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available
financial resources is reported as an e>.:penditures and a fund liability of the governmental fund that will pay
it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable
available financial resources are reported in the general long-term debt account group. No expenditure is
reported for these amounts. Vested or accumulated vacation leave of proprietary fund types is recorded as an
expense and liability of those funds as the benefits accrue to employees. No liability is recorded for
nonvesting accumulating rights to receive sick pay benefits.
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 financed with current available
financial resources are also reported in the general long-term debt account group. Long-term debt and other
obligations financed by proprietary funds are reported as liabilities in the appropriate funds.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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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 financing 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.
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Fund Equity
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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.
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Memorandum Only - Total Columns
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Total columns on the general purpose financial statements are captioned as "memorandum only" because
they do not represent consolidated financial information and are presented only to facilitate financial
analysis. The columns do not present information that reflects financial 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.
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Comparative Data/Reclassifications
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Comparative total data for the prior year have been presented in the selected sections of the accompanying
financial statements in order to provide an understanding of changes in the City's financial 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.
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Note 2:
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
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A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the I
general fund. 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 I
the City's council for review. The council holds public hearings and a final budget is prepared and adopted
in early December.
The appropriated budget is prepared by fund, function and department. The City's department heads, with I
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 I
City Council.
B. Deficit Fund Equity
The following funds had deficit fund balances as of December 31, 1997. The deficit in these funds will be I
eliminated by future revenue sources.
Total
$ 829
10,716
$ 11.545
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Capital Projects Funds
1995 Freeman Park Improvements
Senior Community Center
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
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 equalllO% 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 financial institution other than that furnishing the
collateral.
At year end, the City's carrying amount of deposits was $1,114,336 and the bank balance was $1,167,647.
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'
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
1 2 3
U.S. Government Securities $ 3,483,291 $ $
Commercial Paper 2,047,718
Total $ 5.531.009 $ $
Carrying Market
Amount Value
$ 3,483,291 $3,485,913
2,047,718 2,047,718
5,531,009 5,533,631
Investments not subjected
to categorization:
4M Money Market Fund
Deferred compensation investments at market
53,467
294,843
$ 5.879.319
53-,467
294,843
$5.881.941
Total investments
Cash on Hand
Petty cash in the possession of the City totals $1,900.
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
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
1,114,336
5,879,319
$ 6.995.555
Total
Classified on the combined balance sheet as:
Cash and temporary investments
Investments for deferred compensation plans, at market
$ 6,700,712
294,843
$ 6.995.555
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 financed in five equal principal
installments of $46,500 through July 1, 2000. Two payments were made in 1997 because the service was not
completely in place at the end of 1996. Interest of 5.75% will be paid on the outstanding balance. The
outstanding balance at December 31, 1997 was $139,500.
C. Fixed Assets
A summary of changes in general fixed assets for the year ended December 31, 1997 is as follows:
Balance
Beginning Balance
of Year Additions Deletions End of Year
Land $ 456,826 $ $ $ 456,826
Buildings and structures 1,322,073 25,803 1,347,876
Improvements other than buildings 1,314,258 23,130 1,337,388
Furniture and equipment 1,191.296 205,412 118,157 1.278,551
Total $4.284.453 $ 254.345 $ 118.157 $4.420.641
The following is a summary of proprietary fund type fixed assets at December 31, 1997:
Enterprise Funds
Stormwater
Mgmt
Water Sewer Recvcling Utilitv LiQuor Total
Furniture and
equipment $ 24,178 $ 37,827 $ $ $ 102,488 $ 164,493
Collection and
distribution system 4,708,356 7,591,856 12,300,212
Construction work
in progress 1.530,536 1.530,536
Total 6,263,070 7,629,683 102,488 13,995,241
Less accumulated
depreciation (926.350) (4315,143) (40,761) (5,282,254 )
Net Fixed Assets $5.336.720 $3.314.540 $ $ $ 61.727 $ 8.712.987
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
D. Deferred Revenue
Deferred revenue at December 31, 1997 is comprised ofthe following:
Debt Capital
General Service Proiect Total
Delinquent taxes $ 31,464 $ $ $ 31,464
Special assessments
Delinquent 1,620 10,533 191 12,344
Deferred 1.816 274.163 6.397 282.376
Total $ 34.900 $ 284.696 $ 6.588 $ 326.184
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 both general
government and proprietary activities. The bonds are reported in the proprietary funds if they are expected
to be paid from proprietary 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 Improvement Bonds
The following bonds were issued to finance various improvements and will be repaid primarily from special
assessments levied on the properties benefiting from the improvements. Some issues, however, are partly
financed 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% ofthe 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
G.O. Improvement Bonds
of 1993
$ 960 000
5.40-5.85% 11-01-91
2-01-02
$ 475,000
205.000
$ 680.000
325 000
3.50-4.45 12-01-93
2-01-04
Total General Obligation Improvement Bonds
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
of 1987
9.00%
5-01-91
2-01-00
$ 620.000
$ 920 000
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
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 financing 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 Balance at
and Issued Interest Rate Issue Date Maturity Date Year End
$ 311,000 6.22% 5-30-96 8-01-08 $ 295.897
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
$ 33.396
Enterprise Fund Debt
General Obligation Revenue Bonds
The following bonds were issued to fund improvements in the Water Enterprise fund. They will be repaid
through user charges and tax levies.
G.O. Water Revenue Bonds
of 1995
G.O. Water Revenue Bonds
of 1996
4.00-4.75% 11-01-95
2-01-11
$1,795,000
860.000
$2.655.000
$ 1,920,000
860,000
4.00-5.40% 11-01-96
2-01-12
Total General Obligation Revenue Bonds
Changes in General Long-term Liabilities. During the year ended December 31, 1997, the following
changes occurred in liabilities reported in the general long-term debt account group.
Balance Balance
January 1, December 31,
1997 Additions Reductions 1997
G.O. Improvement Bonds $ 822,500 $ $ 142,500 $ 680,000
Tax Increment Bonds 800,000 180,000 620,000
Lease purchase payable 311,000 15,103 295,897
Sick leave/severance payable 29.344 4.052 33.396
Total $1.962.844 $ 4.052 $ 337.603 $ 1.629.293
The annual service requirements to maturity for all bonds and leases outstanding at December 31, 1997 are
as follows:
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Enterprise
General Long-term Debt Account Group Funds
Tax
G.O. Increment Lease G.O.
Year Ending Improvement Revenue Purchase Revenue
December 31, Bonds Bonds Payable Bonds Total
1998 $ 167,250 $ 342,540 $ 37,544 $ 318,383 $ 865,717
1999 160,443 914,385 37,544 295,934 1,408,306
2000 148,588 37,544 298,020 484,152
2001 136,776 37,544 284,739 459,059
2002 120,139 37,544 276,414 434,097
Thereafter 41,910 225,263 2,148,936 2.416.109
Total 775,106 1,256,925 412,983 3,622,426 6,067,440
Less interest (95,106) (636,925 ) 017,086 ) (967,426) 0,816,543)
Principal $ 680.000 $ 620.000 $ 295.897 $ 2.655.000 $4.250.897
Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of
long-term debt totaled $478,192 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:
Fund Balance - Reserved
Purpose
Amount
Governmental Funds
Debt Service Funds
1993 Improvement and Refunding
Waterford III Tax Increment
1991 Improvement and Refunding
Total Reserved
Debt service on bonds issued
Debt service on bonds issued
Debt service on bonds issued
$ 194,782
6,379
277.031
$ 478.192
Fund Balance - Unreserved - Designated
Governmental Funds
General
Capital Projects
Public Facilities/Office Equipment
Park Capital Improvements
Equipment Replacement
Street Reconstruction
MSA Construction
Trail Capital Improvements
Strawberry Lane Reconstruction
Shady Island Bridge Reconstruction
Working capital
Capital Improvements
Park Improvements
Equipment
Streets
MSA Construction
Trail Improvements
Strawberry Lane
Bridge
$ 1,578,910
128,240
163,402
91,483
1,001,696
230,537
127,136
5,838
26.339
$ 3.353.581
Total Unreserved - Designated
-17-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
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
Enterprise
Water Sewer Total
$4,427,326 $4,390,632 $8,817,958
283.598 69.390 352.988
$4.710.924 $4.460.022 $9.170.946
Beginning balance,
Contributed capital
Contributing sources:
Developer and customer
Ending balance,
Contributed capital
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 defined 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 defined retirement benefits are based on a member's highest average salary for any five
successive years of allowable service, age and years of credit at termination of service.
Two methods are used to compute benefits for 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 who retires before July 1,
1997 is 2.0 percent of average salary for each of the first 10 years of service and 2.5 percent for each
remaining year. The annuity accrual rate for Basic members who retire on or after July 1, 1997 is 2.2
percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year.
For a Coordinated Plan member who retires before July 1, 1997, 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. For Coordinated
members who retire on or after July 1, 1997, the annuity accrual rates increase by 0.2 percent (to 1.2 percent
of average salary for each of the first 10 years and 1.7 percent for each remaining year). Under 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 who retire before July 1, 1997. Annuity accrual rates increase 0.2 percent for
members who retire on or after July 1, 1997. 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.
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Note 4:
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Note 5:
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
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.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF. That report may be obtained by writing to PERA, 514 St. Peter Street,
#200, St. 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, 4.48% for Coordinated Plan PERF members. The City's contributions to the Public Employees
Retirement Fund for the years ending December 31, 1997, 1996, and 1995 were $33,296, $30,416 and
$29,103, respectively. The City's contributions were equal to the contractually required contributions for
each year as set by state statute.
JOINT VENTURES
A. South Lake Minnetonka Public Safety Department
The City of Shorewood participates in a joint powers agreement with the cities of Excelsior, Greenwood and
Tonka Bay which establishes the South Lake Minnetonka Public Safety Department for the purpose of
providing police protection within the four communities. The agreement creates a coordinating committee,
comprised of the mayors of each participating community, as the governing body, which meets quarterly.
Each year, the Coordinating committee adopts an operating budget, which is approved by all participating
cities. The cost of the budget is divided between the participating cities based upon a five-year average
demand for service in each city. The percentage contributed in 1997 by the City of Shorewood is 45.1 %.
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 $145,104, and deferred compensation benefits payable
in the Agency Fund of $262,433 at year end. There is no other current or long-term debt outstanding as of
December 31,1997. The following is a summary of the Department's balance sheet as of December 31,
1997 and the statement of revenue, expenditures and changes in fund balance for the General Fund for the
year ended December 31, 1997.
SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31,1997
General Totals
Fixed (Memorandum Only)
General Agencv Assets 1997 1996
Total assets $ 326.012 $ 262.433 $ 350.967 $ 939.412 $ 854.893
Liabilities $ 145,104 $ 262,433 $ $ 407,537 $ 369,707
Fund equity 180,908 350.967 531.875 485.186
Total liabilities and fund equity $ 326.012 $ 262.433 $ 350.967 $ 939.412 $ 854.893
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
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Note 5: JOINT VENTURES - CONTINUED
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SOUTII LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1997
(With comparative actual amounts for the year ended December 31, 1996)
Fund balance, December 31
1997 1996
Variance -
Favorable
Budget Actual (Unfavorable ) Actual
$ 1,183,226 $ 1,247,073 $ 63,847 $ 1,189,252
1,203,226 1,218.390 (15,164 ) 1,177,094
$ (20.000 ) 28,683 $ 48.683 12,158
152,225 140,067
$ 180.908 $ 152.225
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Total revenue
Total expenditures
Excess of revenue over (under)
expenditures
Fund balance, January 1
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B. South Lake Minnetonka Senior Community Center
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
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 building construction. Shorewood financed their share with a lease purchase
obligation. The amount of the lease purchase is $295,897 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 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.
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Note 6:
OTHER INFORMATION
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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.
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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 $1,000,000.
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.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997
Note 6: OTHER INFORMATION - CONTINUED
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Service Code Section 457. The plan, available to all full-time City employees at their option, permits
participants to defer a portion of their salary until future years. The deferred compensation assets are not
available to employees until termination, retirement, death or unforeseen emergency.
All amounts of compensation deferred under this plan, all property and rights purchased with those amounts,
and all income attributable to those amounts, property or rights are (until paid or made available to the
participant or beneficiary), solely the property of the City, subject only to the claims of the City's general
creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount
equal to the fair market value of the deferred account for each participant.
It is the option of the City's legal counsel that the City has no liability for losses under the plan but does have
the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely
that it will use the assets to satisfy the claims of general creditors in the future.
Assets of the plan are held by trustees and are reflected in these statements in an Agency Fund at market
value.
C. Segment Information for Enterprise Funds
Stormwater
Management
Water Sewer Recvcling Utilitv LiQuor Total
Operating revenue $ 252,866 $ 758,124 $ 71,890 $ 44,911 $ 383,874 $1,511,665
Depreciation expense 91,470 191,393 10,551 293,414
Operating income (loss) (19,205 ) (32,275 ) (895 ) 23,320 (20,300 ) (49,355 )
Operating transfers from
other funds 10,000 10,000
Property tax revenue 15 15
Net income (loss) 25,630 31,496 (52) 46,053 (13,044 ) 90,083
Fixed asset additions 199,853 69,390 2,228 271,471
Net working capital 1,929,179 1,532,589 23,157 251,401 261,453 3,997,779
Contributed capital additions 283,598 69,390 352,988
Total assets 7,600,040 4,856,984 25,081 251,437 454,406 13,187,948
Total equity 4,908,984 4,847,129 23,157 251,401 323,180 10,353,851
D. Legal Debt Margin
In accordance with Minnesota Statutes, the City may not incur or be subject to net debt in excess of two
percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem
taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund
revenues or tax increments.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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Note 7:
OPERATING LEASES
The City leases space for liquor store operations. These leases are considered, for accounting purposes, to be
operating leases. Lease expense for the year ended December 31, 1997 and 1996 amounted to $140,519 and
$113,514, respectively. Future minimum lease payments for Waterford Center and Tonka Bay leases are as
follows:
1998
1999
2000
2001
$ 49,500 $ 12,000
49,500
49,500
49,500
$ 198.000 $ 12.000
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Year Ending
December 31.
Waterford
Center Tonka Bav
Total
The new lease for Waterford Center began January 1,1995 and will run through December 31,2001. Shorewood
Plaza is currently under a month to month lease. The monthly rent payments are $2,328.
Note 8:
TAX INCREMENT REVENUE BONDS
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During 1991, the City issued $920,000 Tax Increment Revenue Bonds. The proceeds ofthe issue will be used to
pay for public improvements stipulated in the development agreements. The bonds were issued at par value not to
exceed $920,000. The bonds are not a general obligation of the City and are not backed by the full faith and credit
or taxing powers of the City. The bonds are payable solely from the tax increments generated from the City's Tax
Increment Financing District No.1. In addition, upon completion of the project, all excess bond proceeds will be
repaid to the holder of the bonds as principal reduction. Interest at a rate of nine percent will accrue from the date
of issuance of the bonds but will not be payable until tax increment is available.
General Fund
Capital Projects Funds
Public Facilities/Office Equipment
Park Capital Improvements
Equipment Replacement
Street Reconstruction
Trail Capital Improvement
Strawberry Lane Reconstruction
Shady Island Bridge Reconstruction
Enterprise Funds
Stormwater Management Utility
Transfer Transfer
In Out
$ $ 444,395
15,000 15,000
20,000
109,395
290,000 380,500
25,500
10,000
360,000
10,000
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The bonds payable are reported as a liability in the General Long-term Debt Account Group in the financial
statements even though:
The bonds issued are tax increment revenue bonds.
The bonds are not backed by the full faith and credit of the City.
The bonds will be repaid only to the extent that tax increments are generated from the Tax Increment
Financing District.
Note 9:
OPERATING TRANSFERS
A schedule of operating transfers follows:
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CITY OF SHOREWOOD, MINNESOTA
THE GENERAL FUND
The General Fund is used to account for resources traditionally associated with government
which are not required legally or by sound financial management to be accounted for in
other funds. It normally receives a greater variety and number of taxes and other general
revenues than any other fund. The majority of the current day-to-day operations will be
financed from this fund.
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ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Salaries payable
Refundable deposits payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Unreserved
Designated for working capital
CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,1997 AND 1996
TOTAL LIABILITIES AND FUND BALANCE
-23-
Exhibit A-I
1997 1996
$ 1,639,343 $ 1,571,287
27,711 27,898
44,319 44,726
12,547 20,339
1,620 1,620
1,816 55
$ 1,727,356 $ 1,665,925
$ 56,216 $ 58,596
24,519 22,319
32,811 31,038
34,900 31,020
148,446 142,973
1,578,910
1,522,952
$ 1,727,356
$ 1,665,925
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND I
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1997 I
(With Comparative Amounts for the Year Ended December 31, 1996)
1997 1996 I
Variance -
Favorable
Budget Actual (Unfavorable) Actual I
REVENUE
General property taxes
General property taxes $ 1,644,067 $ 1,642,325 $ (1,742) $ 1,509,592 I
Fiscal disparities 61,184 61,184 60,061
Total 1,705,251 1,703,509 (1,742) 1,569,653 I
Licenses and permits
Business 9,650 9,950 300 10,920 I
Nonbusiness 164,600 226,722 62,122 194,539
Total 174,250 236,672 62,422 205,459 I
Intergovernmental - State
Property tax credits 420,880 420,880 413,718 I
Other 26,410 29,305 2,895 13,750
Total 447,290 450,185 2,895 427,468 I
Charges for services
General government 56,000 50,639 (5,361) 10,451 I
Parks and recreation 9,000 12,570 3,570 34,794
Total 65,000 63,209 (1,791) 45,245 I
Fines and forfeitures 80,000 76,340 (3,660) 80,826
Miscellaneous revenue I
Interest on investments 75,000 99,370 24,370 95,711
Other 21,500 40,802 19,302 33,393 I
Total 96,500 140,172 43,672 129,104
TOTAL REVENUE 2,568,291 2,670,087 101,796 2,457,755 I
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CITY OF SHORE WOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
I YEAR ENDED DECEMBER 31, 1997
(With Comparative Amounts for the Year Ended December 31, 1996)
I 1997 1996
Variance -
Favorable
I Budget Actual (Unfavorable) Actual
EXPENDITURES
Current
I General Government
Mayor and Council
Personal services $ 13,564 $ 13,564 $ $ 13,564
I Supplies 1,200 1,207 (7) 1,503
Other services and charges 56,780 38,978 17,802 48,309
Contingency 26,035 26,035
I Total 97,579 53,749 43,830 63,376
I Administrative
Personal services 91,520 95,306 (3,786) 93,895
Supplies 575 530 45 517
I Other services and charges 9,100 7,158 1,942 6,572
Total 101,195 102,994 (1,799) 100,984
I Finance
Personal services 90,632 93,914 (3,282) 87,919
I Supplies 2,900 2,518 382 4,113
Other services and charges 8,250 6,971 1,279 4,096
I Total 101,782 103,403 (1,621) 96,128
Professional services
I Personal services 76,999 62,236 14,763 57,509
Supplies 1,300 1,335 (35) 1,421
Other services and charges 127,950 189,765 (61,815) 153,861
I Total 206,249 253,336 (47,087) 212,791
I Planning and zoning
Personal services 90,616 90,515 101 88,779
Supplies 750 859 (109) 1,095
I Other services and charges 7,789 6,964 825 7,672
Total 99,155 98,338 817 97,546
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
I YEAR ENDED DECEMBER 31, 1997
(With Comparative Amounts for the Year Ended December 31, 1996)
I 1997 1996
Variance -
Favorable
I Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED
Current - Continued
I Public Works
General maintenance
Personal services $ 135,716 $ 173,382 $ (37,666) $ 181,638
I Supplies 36,200 32,008 4,192 36,881
Other services and charges 18,350 16,879 1,471 18,088
I Total 190,266 222,269 (32,003) 236,607
Streets and highways
I Personal services 85,755 72,659 13,096 65,072
Supplies 34,000 32,733 1,267 33,779
Other services and charges 29,600 21,280 8,320 28,069
I Total 149,355 126,672 22,683 126,920
I Snow and ice removal
Personal services 25,476 22,126 3,350 32,776
Supplies 20,000 20,277 (277) 17,265
I Total 45,476 42,403 3,073 50,041
I Traffic control
Supplies 4,000 4,161 (161) 4,021
Other services and charges 33,500 34,762 (1,262) 33,546
I Total 37,500 38,923 (1,423) 37,567
I Sanitation and waste removal
Personal services 612 1,730 (1,118) 999
Other services and charges 4,000 3,377 623 3,621
I Total 4,612 5,107 (495) 4,620
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1997
(With Comparative Amounts for the Year Ended December 31, 1996)
1997 1996
Variance -
Favorable
Budget Actual (Unfavorable) Actual
OTHER FINANCING SOURCES (USES)
Operating transfers in $ 10,000 $ $ (10,000) $
Operating transfers out (444,395) (444,395) (424,186)
TOTAL OTHER FINANCING
SOURCES (USES) (434,395) (444,395) (10,000) (424,186)
EXCESS (DEFICIENCY) OF REVENUE AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER USES $ (60,000) 55,870 $ 115,870 (21,396)
FUND BALANCE, JANUARY 1 1,522,952 1,544,348
FUND EQUITY TRANSFERS IN 88
FUND BALANCE, DECEMBER 31 $ 1,578,910 $ 1,522,952
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
Debt service funds are used to account for the payment of interest and principal on long-
term general obligation debt other than debt issued for and serviced primarily by enterprise
funds.
1993 Improvement and Refundine Fund - Thisfund was established to accolint for
the accumulation of resources for payment of interest and prin~ipal on bonds issued for the
Season's development improvements and to refund the 1987 refunding bonds.
Waterford III Tax Increment Fund - This fund was established to account for the
accumulation of resources for payment of interest and principal on bonds issued for the
Waterford III Intersection Improvements.
Shady Hills Storm Sewer Improvement Fund - This fund was established to
account for the accumulation of resources for payment of interest and principal on bonds
issued for the Shady Hills Storm Sewer Improvements. This issue was retired in 1997,
and the residual fund balance was transferred to the General Fund.
1991 Improvement and Refundine Fund - This fund was established to account for
the accumulation of re~ources for the payment of interest and principal on bonds issued for
the SE water treatment plant, Pine Bend improvemen~s, Church Road improvements, and
to refund the 1986 improvement bonds.
CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31,1997
(With Comparative Totals for December 31, 1996)
ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Special assessments
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Deferred revenue
$
59,325
FUND BALANCE
Reserved for debt service
194,782
TOTAL LIABILITIES AND FUND BALANCE
$ 254,107
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$
6,379
$
6,379
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$
$
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Exhibit B-1
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I 1991
Improvement
and Total
I Refunding 1997 1996
$ 273,477 $ 469,150 $ 492,891
I 3,411 5,638 6,517
3,150 3,655
I 10,273 10,787 10,561
215,241 274,163 388,113
I $ 502,402 $ 762,888 $ 901,737
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$ 225,371 $ 284,696 $ 398,102
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277,031 478,192 503,635
I $ 502,402 $ 762,888 $ 901,737
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CITY OF SHOREWOOD, MINNESOTA I
DEBT SERVICE FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31, 1997
(With Comparative Totals for the Year Ended December 31, 1996) I
1993
Improvement Waterford Shady Hills I
and III Tax Storm Sewer
Refunding Increment Improvement
REVENUE I
Property taxes $ $ 313,512 $
Special assessments 66,294
Interest on investments 8,064 45 69
TOTAL REVENUE 74,358 313,557 69 I
EXPENDITURES I
Debt Service
Principal 40,000 180,000 7,500 I
Interest and service charges 10,088 134,685 300
TOTAL EXPENDITURES 50,088 314,685 7,800 I
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES 24,270 (1,128) (7,731) I
OTHER FINANCING SOURCES (USES)
Operating transfer in I
Operating transfer out
TOTAL OTHER FINANCING I
SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER I
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES 24,270 (1,128) (7,731)
FUND BALANCE, JANUARY 1 170,512 7,507 7,819 I
FUND EQUITY TRANSFER OUT (88) I
FUND BALANCE, DECEMBER 31 $ 194,782 $ 6,379 $
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Exhibit B-2
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1991
I Improvement
and Total
Refunding 1997 1996
I $ $ 313,512 $ 184,513
71,833 138,127 145,806
I 11,934 20,112 21,929
83,767 471,751 352,248
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I 95,000 322,500 887,000
29,533 174,606 145,419
I 124,533 497,106 1,032,419
I (40,766) (25,355) (680,171)
I 11,450
(160,950)
I (149,500)
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(40,766) (25,355) (829,671)
I 317,797 503,635 1,419,732
I (88) (86,426)
$ 277,031 $ 478,192 $ 503,635
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital
facilities other than those financed by enterprise funds.
Public Facilities/Office Equipment Fund - This fund was established to account for capital
improvement projects for public facilities and replacement of office equipment which may be
financed without the need to issue bonds.
Park Capital Improvement Fund - This fund accounts for park land acquisition and other
capital improvements in the City parks.
Equipment Replacement Fund ~ This fund was established for the purpose of funding the
replacement of capital equipment.
Street Reconstruction Fund - This fund was established for the purpose of funding the
periodic reconstruction of City streets and roadways.
MSA Construction Fund - This fund was established to account for the accumulation of
Municipal State Aid (MSA) to fund the periodic reconstruction of MSA designated roads.
Trail Capital Improvement Fund - This fund was established to account for trail extensions
and improvements.
Strawberry Lane Reconstruction Fund - This fund was established to account for the
reconstruction of Strawberry Lane.
1995 Freeman Park Improvement Fund - This fund was established to account for the
construction of improvements in Freeman Park.
Senior Community Center Fund - ThisJund was established to account for the construction
of a Senior Community Center.
Sha~y Island Bridf:e Replacement Fund - This fund was established to account for the
replacementof the Shady Island Bridge.
,
Cathcart Park Improvements Fund - This fund was established to account for the
construction of improvements in Cathcart Park. This fund was closed at year end and the residual
fund balance was transferred to the Park Capital Improvement Fund.
CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31,1997
(With Comparative Totals for December 31, 1996)
Public
Facilities! Park
Office Capital Equipment
Equipment Improvement Replacement
ASSETS
Cash and temporary investments $ 126,433 $ 161,480 $ 180,656
Accrued interest receivable 1,807 1,922 1,432
Accounts receivable
Special assessments receivable
Delinquent 191
Deferred 6,397
Due from other funds
TOTAL ASSETS $ 134,828 $ 163,402 $ 182,088
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable $ $ $ 90,605
Refundable deposits payable
Deferred revenue 6,588
Due to other funds
TOTAL LIABILITIES 6,588 90,605
FUND BALANCE (DEFICIT)
Unreserved
Designated 128,240 163,402 91,483
Undesignated
TOTAL FUND BALANCE (DEFICIT) 128,240 163,402 91,483
TOTAL LIABILITIES AND
FUND BALANCE (DEFICIT) $ 134,828 $ 163,402 $ 182,088
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Exhibit C-l
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1995
I Trail Strawberry Freeman Senior
Street MSA Capital Lane Park Community
Reconstruction Construction Improvements Reconstruction Improvement Center
I $ 987,176 $ 227,517 $ 125,657 $ 5,969 $ (1,462) $ 25,072
14,520 3,020 1,479 34 633 1,338
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I $ 1,001,696 $ 230,537 $ 127,136 $ 6,003 $ (829) $ 26,410
I $ $ $ $ 165 $ $ 37,126
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I 165 37,126
I 1,001,696 230,537 127,136 5,838
(829) (10,716)
I 1,001,696 230,537 127,136 5,838 (829) (10,716)
I $ 1,001,696 $ 230,537 $ 127,136 $ 6,003 $ (829) $ 26,410
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CITY OF SHORE WOOD, MINNESOTA Exhibit C-l
CAPITAL PROJECTS FUNDS Continued
COMBINING BALANCE SHEET - CONTINUED
DECEMBER 31,1997
(With Comparative Totals for December 31, 1996)
Shady
Island Cathcart
Bridge Park Totals
Reconstruction Improvements 1997 1996
ASSETS
Cash and temporary investments $ 77,619 $ $1,916,117 $ 2,026,275
Accrued interest receivable 204 26,389 32,736
Accounts receivable 8,887
Special assessments receivable
Delinquent 191 485
Deferred 6,397 7,676
Due from other funds 13,985
TOTAL ASSETS $ 77,823 $ $1,949,094 $ 2,090,044
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable $ 51,484 $ $ 179,380 $ 97,204
Refundable deposits payable 25,150
Deferred revenue 6,588 8,160
Due to other funds 13,985
TOTAL LIABILITIES 51,484 185,968 144,499
FUND BALANCE (DEFICIT)
Unreserved
Designated 26,339 1,774,671 1,971,530
Undesignated (11,545) (25,985)
TOTAL FUND BALANCE (DEFICIT) 26,339 1,763,126 1,945,545
TOTAL LIABILITIES AND
FUND BALANCE (DEFICIT) $ 77,823 $ $1,949,094 $ 2,090,044
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE (DEFICIn
YEAR ENDED DECEMBER 31, 1997 I
(With Comparative Totals for the Year Ended December 31, 1996)
Public I
Facilities! Park
Office Capital Equipment
Equipment Improvement Replacement I
REVENUE
Intergovernmental $ $ $
Special assessments 2,287 I
Interest on investments 3,001 7,190 5,460
Miscellaneous
Park dedication fees 40,000 I
Contributions and donations 5,507
Other 1,923
TOTAL REVENUE 5,288 54,620 5,460 I
EXPENDITURES I
Capital outlay
Other services and charges 81
Professional services I
Construction costs 25,678
Machinery and equipment 15,458 99,678
TOTAL EXPENDITURES 15,458 25,678 99,759 I
EXCESS (DEFICIENCY) OF REVENUE I
OVER EXPENDITURES (10,170) 28,942 (94,299)
OTHER FINANCING SOURCES (USES) I
Operating transfers in 15,000 20,000 109,395
Lease purchase proceeds
Operating transfers out (15,000) I
TOTAL OTHER FINANCING
SOURCES (USES) 20,000 109,395
EXCESS (DEFICIENCY) OF REVENUE AND OTHER I
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES (10,170) 48,942 15,096 I
FUND BALANCE (DEFICIT), JANUARY 1 138,410 110,864 76,387
FUND EQUITY TRANSFER IN 3,596 I
FUND EQUITY TRANSFER OUT
FUND BALANCE (DEFICIn, DECEMBER 31 $ 128,240 $ 163,402 $ 91,483 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit C-2
I CAPITAL PROJECTS FUNDS Continued
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE (DEFICIT) - CONTINUED
I YEAR ENDED DECEMBER 31,1997
(With Comparative Totals for the Year Ended December 31, 1996)
I Shady
Island Cathcart
Bridge Park Total
I Reconstruction Improvements 1997 1996
REVENUE
Intergovernmental $ $ $ 132,394 $ 94,620
I Special assessments 2,287 1,404
Interest on investments 2,403 91,933 110,342
Miscellaneous
I Park dedication fees 40,000 17,500
Contributions and donations 5,507 371,020
Other 27,073 220
I TOTAL REVENUE 2,403 299,194 595,106
I EXPENDITURES
Capital outlay
Other services and charges 250 11 8,101 37,914
I Professional services 60,292 111,745 114,336
Construction costs 249,537 678,026 441,377
Machinery and equipment 118,136 158,468
I TOTAL EXPENDITURES 310,079 11 916,008 752,095
I EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (307,676) (11) (616,814) (156,989)
I OTHER FINANCING SOURCES (USES)
Operating transfers in 360,000 829,895 568,270
Lease purchase proceeds 311,000
I Operating transfers out (395,500) (239,999)
TOTAL OTHER FINANCING
I SOURCES (USES) 360,000 434,395 639,271
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES
I AND OTHER FINANCING USES 52,324 (11) (182,419) 482,282
FUND BALANCE (DEFICIT), JANUARY 1 (25,985) 3,607 1,945,545 1,376,837
I FUND EQUITY TRANSFER IN 3,596 114,342
FUND EQUITY TRANSFER OUT (3,596) (3,596) (27,916)
I FUND BALANCE (DEFICIT), DECEMBER 31 $ 26,339 $ $1,763,126 $1,945,545
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
Enterprise funds are used to' account for operations that are financed and operated in a
manner similar to private business, where the costs of providing services to the general
public are financed primarily through user charges.
Water Fund - This fund is used to account for the activities of the City water system and
to service debt inyurred in the building of infrastructure for the system.
Sewer Fund - This fund is used to account for the activities of the City sanitary sewer
system.
Recycling Fund - This fund is used to account for the activities of the City recycling
program.
Stormwater Management 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 1997. A portion
of the net income generated by the operation, if any, is used to fund general fund activities.
CITY OF SHOREWOOD, MINNESOTA I
, ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS I
YEAR ENDED DECEMBER 31, 1997
(With Comparative Totals for the Year Ended December 31, 1996) I
Water Sewer Recycling
OPERATING REVENUE I
Sales $ $ $
Less cost of sales
GROSS PROFIT I
Charges for services 231,890 708,058 71,890 I
Permits and connection fees 20,976 50,066
GROSS PROFIT AND REVENUE 252,866 758,124 71,890
OPERATING EXPENSES I
Personal services 13,749 7,094 571
Supplies 9,190 1,716 2,080 I
Repairs and maintenance 8,927 4,368
Depreciation 91,470 191,393
Professional services 11,509 1,154 I
Contracted services 57,222 52,346 70,053
Communication 1,107 138
Insurance 4,877 2,429
Water purchases 12,780 I
Utilities 45,983 4,404
MCES disposal charges 525,231
Rent I
Advertising
Other 15,257 126 81
TOTAL OPERATING EXPENSES 272,071 790,399 72,785 I
OPERATING INCOME (LOSS) (19,205) (32,275) (895) I
NONOPERATING REVENUE (EXPENSES)
General property taxes 15
Special assessments 72,882 I
Interest on investments 49,188 63,771 843
Other income (expense) 43,487
Interest expense (120,737) I
TOTAL NONOPERATING REVENUE (EXPENSES) 44,835 63,771 843
INCOME (LOSS) BEFORE TRANSFERS 25,630 31,496 (52) I
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME (LOSS) 25,630 31,496 (52) I
RETAINED EARNINGS, JANUARY 1 172,430 355,611 23,209
RETAINED EARNINGS, DECEMBER 31 $ 198,060 $ 387,107 $ 23,157 I
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS I
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31,1997
(With Comparative Totals for the Year Ended December 31, 1996) I
Water Sewer Recycling
CASH FLOWS FROM OPERATING ACTIVITIES I
Operating income (loss) $ (19,205) $ (32,275) $ (895)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities: I
Other income (expense) related to operations 43,487
Depreciation and amortization 92,874 191,393
(Increase) decrease in assets: I
Accounts receivable (428) (3,411) 493
Special assessments receivable (94) (525)
Due from other funds
Inventory I
Prepaid items (356) 241
Increase (decrease) in liabilities:
Accounts payable (86,003) (2,634 ) 1,924 I
Salaries and compensated absences payable 93 76
Deferred revenue
Due to other funds I
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 30,462 153,296 997
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES I
Operating transfers from other funds
Operating transfers to other funds
NET CASH PROVIDED BY NONCAPITAL I
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal payments on note receivable 93,000 I
Issuance of bonds, net of discount
Principal paid on revenue bonds (125,000)
Interest paid on revenue bonds (120,737) I
Acquisition of fixed assets (142,388)
Property taxes collected 372
Special assessments collected 230,448 I
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES (64,305)
CASH FLOWS FROM INVESTING ACTIVITIES I
Interest on investments 52,444 61,568 876
INCREASE (DECREASE) IN CASH AND CASH EQillV ALENTS 18,601 214,864 1,873 I
CASH AND CASHEQillVALENTS, JANUARY 1 1,056,041 1,082,948 12,385
CASH AND CASH EQillV ALENTS, DECEMBER 31 $ 1,074,642 $ 1,297,812 $ 14,258 I
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired developers $ 57,465 $ 69,390 $
Additions to contributed capital from note proceeds $ $ $ I
-44- I
CITY OF SHOREWOOD, MINNESOTA Exhibit D-4 I
WATER FUND I
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
1997 1996 I
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 1,074,642 $ 1,056,041 I
Accrued interest receivable 14,376 17,632
Delinquent taxes receivable 113 470
Accounts receivable 44,149 43,721 I
Special assessments receivable
Delinquent 16,161 16,307
Deferred 949,933 881,217 I
Current portion of note receivable 46,500 93,000
Prepaid items 4,361 4,005
TOTAL CURRENT ASSETS 2,150,235 2,112,393 I
FIXED ASSETS, AT COST 6,263,070 6,063,217 I
LESS ACCUMULATED DEPRECIATION (926,350) (834,877)
TOTAL FIXED ASSETS 5,336,720 5,228,340
OTHER ASSETS I
Bond discount, net of amortization 20,085 21,489
Note receivable, less current portion above 93,000 139,500 I
TOTAL OTHER ASSETS 113,085 160,989
TOTAL ASSETS $ 7,600,040 $ 7,501,722 I
LIABILITIES AND FUND EQUITY I
CURRENT LIABILITIES
Accounts and contracts payable $ 35,802 $ 121,805
Salaries payable 254 161 I
Current portion of long-term debt 185,000 125,000
TOTAL CURRENT LIABILITIES 221,056 246,966 I
LONG -TERM LIABILITIES
Bonds payable less current portion above 2,470,000 2,655,000 I
TOTAL LIABILITIES 2,691,056 2,901,966
FUND EQUITY I
Contributed capital 4,710,924 4,427,326
Retained earnings
Unreserved 198,060 172,430 I
TOTAL FUND EQUITY 4,908,984 4,599,756
TOTAL LIABllJTIES AND FUND EQUITY $ 7,600,040 $ 7,501,722 I
-46- I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-5
I WATER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT)
YEARS ENDED DECEMBER 31, 1997 AND 1996
I 1997 1996
OPERATING REVENUE
I Charges for services $ 231,890 $ 259,228
Permits and connection fees 20,976 13,450
I TOTAL OPERATING REVENUE 252,866 272,678
OPERATING EXPENSES
I Personal services 13,749 5,680
Supplies 9,190 5,412
Repairs and maintenance 8,927 8,777
I Depreciation 91,470 80,649
Professional services 11,509 6,306
Contracted services 57,222 49,219
I Communication 1,107 1,112
Insurance 4,877 4,575
Water purchases 12,780 10,492
I Utilities 45,983 47,739
Other 15,257 31,173
I TOTAL OPERATING EXPENSES 272,071 251,134
OPERATING INCOME (LOSS) (19,205) 21,544
I NONOPERATING REVENUE (EXPENSES)
General property taxes 15 16,304
I Special assessments 72,882 59,919
Interest on investments 49,188 75,477
Other income 43,487 19,725
I Interest expense (120,737) (74,473)
TOTAL NONOPERATING REVENUE (EXPENSES) 44,835 96,952
I INCOME BEFORE TRANSFERS 25,630 118,496
I OPERATING TRANSFERS FROM OTHERS FUNDS 210,150
OPERATING TRANSFERS TO OTHERS FUNDS (10,726)
I NET INCOME 25,630 317,920
I RETAINED EARNINGS (DEFICIT), JANUARY 1 172,430 (145,490)
RETAINED EARNINGS, DECEMBER 31 $ 198,060 $ 172,430
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I -47-
CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997 AND 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash
provided by operating activities:
Other income related to operations
Depreciation and amortization
(Increase) decrease in assets:
Accounts receivable
Prepaid items
Increase (decrease) in liabilities:
Accounts and contracts payable
Salaries and compensated absences payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds
Operating transfers to other funds
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal payments on note receivable
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of fixed assets
Property taxes collected
Special assessments collected
NET CASH 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 developers
Additions to contributed capital from note proceeds
-48-
Exhibit D-6
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1997 1996
$ (19,205) $ 21,544
43,487 19,725
92,874 81,666
(428) (5,725)
(356) (231 )
(86,003) (26,819)
93 (3)
30,462 90,157
210,150
(10,726)
199,424
93,000
849,293
(125,000) (15,000)
(120,737) (74,473)
(142,388) (2,173,439)
372 16,336
230,448 296,481
(64,305) (1,100,802)
52,444 77,651
18,601 (733,570)
1,056,041 1,789,611,
$1,074,642 $ 1,056,041
$ 57,465 $ 91,110
$ $ 232,500
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-7
SEWER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,1997 AND 1996
1997 1996
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 1,297,812 $ 1,082,948
Accrued interest receivable 17,088 14,885
Accounts receivable 184,698 181,287
Special assessments receivable
Delinquent 16,651 14,929
Deferred 24,372 26,000
Prepaid items 1,823 2,064
TOTAL CURRENT ASSETS 1,542,444 1,322,113
FIXED ASSETS, AT COST 7,629,683 7,560,293
LESS ACCUMULATED DEPRECIATION (4,315,143) (4,123,750)
NET FIXED ASSETS 3,314,540 3,436,543
TOTAL ASSETS $ 4,856,984 $ 4,758,656
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable $ 9,722 $ 12,356
Salaries and compensated absences payable 133 57
TOTAL CURRENT LIABILITIES 9,855 12,413
FUND EQUITY
Contributed capital 4,460,022 4,390,632
Retained earnings
Unreserved 387,107 355,611
TOTAL FUND EQUITY 4,847,129 4,746,243
TOTAL LIABILITIES AND FUND EQUITY $ 4,856,984 $ 4,758,656
-49-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-8
SEWER FUND I
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND.CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,1997 AND 1996
I
1997 1996
OPERATING REVENUE I
Charges for services $ 708,058 $ 698,882
Permits and connection fees 50,066 20,566
TOTAL OPERATING REVENUE 758,124 719,448 I
OPERATING EXPENSES I
Personal services 7,094 9,645
Supplies 1,716 1,689
Repairs and maintenance 4,368 6,446 I
Depreciation 191,393 190,154
Professional service 1,154 752
Contracted services 52,346 31,647 I
Communication 138 145
Insurance 2,429 3,540
Utilities 4,404 4,440 I
MCES charges 525,231 488,439
Other 126 1,203
TOTAL OPERATING EXPENSES 790,399 738,100 I
OPERATING LOSS (32,275) (18,652) I
NONOPERATING REVENUE
Interest on investments 63,771 54,019 I
Other income 2,243
TOTAL NONOPERATING REVENUE 63,771 56,262 I
INCOME BEFORE OPERATING TRANSFERS 31,496 37,610
OPERATING TRANSFERS TO OTHER FUNDS (24,201) I
NET INCOME 31,496 13,409 I
RETAINED EARNINGS, JANUARY 1 355,611 342,202
RETAINED EARNINGS, DECEMBER 31 $ 387,107 $ 355,611 I
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997 AND 1996
Exhibit D-9
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss $ (32,275) $ (18,652)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Other income related to operations 2,243
Depreciation 191,393 190,154
(Increase) decrease in assets:
Accounts receivable (3,411) 127
Special assessments receivable (94) 6,464
Prepaid items 241 1,064
Increase (decrease) in liabilities:
Accounts and contracts payable (2,634) 10,912
Salaries and compensated absences payable 76 (2)
Deferred revenue (7,593)
NET CASH PROVIDED BY OPERATING ACTIVITIES 153,296 184,717
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Operating transfer to other funds (24,201)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition offixed assets (21,690)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 61,568 65,298
INCREASE IN CASH AND CASH EQUIVALENTS 214,864 204,124
CASH AND CASH EQUIVALENTS, JANUARY 1 1,082,948 878,824
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,297,812 $ 1,082,948
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired from developers $ 69,390
$ 73,314
-51-
ASSETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
TOTAL ASSETS
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,1997 AND 1996
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable
RETAINED EARNINGS
Unreserved
TOTAL LIABILITIES AND RETAINED EARNINGS
-52-
Exhibit D-I0
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1997 1996
$ 14,258 $ 12,385
242 275
8,683 9,176
400 266
1,498 1,107
$ 25,081 $ 23,209
$ 1,924
$
23,157
23,209
$ 25,081
$ 23,209
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-11
RECYCLING FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,1997 AND 1996
1997 1996
OPERATING REVENUE
Charges for services
$ 70,535
$ 71,890
OPERATING EXPENSES
Personal services
Supplies
Contracted service
Other
OPERATING LOSS
571 725
2,080
70,053 70,090
81 130
72,785 70,945
(895) (410)
TOTAL OPERATING EXPENSES
NONOPERATING REVENUE (EXPENSES)
Interest on investments
843
550
NET INCOME (LOSS)
(52)
140
RETAINED EARNINGS, JANUARY 1
23,209
23,069
RETAINED EARNINGS, DECEMBER 31
$ 23,157
$ 23,209
-53-
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss $ (895) $ (410)
Adjustments to reconcile operating loss to net cash provided (used)
by operating activities:
(Increase) decrease in assets:
Accounts receivable 493 (7,205)
Special assessments receivable (525) (664)
Increase (decrease) in liabilities:
Accounts payable 1,924
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 997 (8,279)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 876 1,281
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,873 (6,998)
CASH AND CASH EQUIVALENTS, JANUARY 1 12,385 19,383
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 14,258 $ 12,385
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CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997 AND 1996
Exhibit D-12
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CIlY OF SHOREWOOD, MINNESOTA Exhibit D-13
STORMW ATER MANAGEMENT UTILIlY FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,1997 AND 1996
1997 1996
ASSETS
CURRENT ASSETS
Cash and investments $ 233,903 $ 189,385
Accrued interest receivable 3,066 1,343
Accounts receivable 12,096 12,095
Special assessments receivable
Delinquent 1,107 1,083
Deferred 1,265 1,459
TOTAL ASSETS $ 251,437 $ 205,365
LIABILITIES AND RETAINED EARNINGS
LIABILITIES
Salaries payable $ 36 $ 17
RETAINED EARNINGS
Unreserved 251,401 205,348
TOTAL LIABILITIES AND RETAINED EARNINGS $ 251,437 $ 205,365
-55-
1997 1996
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CITY OF SHOREWOOD, MINNESOTA Exhibit D44
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND. CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1997 AND 1996
3,252 1,359
2,278
7,378 424
8,683 13,250
21,591 15,033
23,320 29,458
OPERATING REVENUE
Charges for services
$ 44,911
OPERATING EXPENSES
Personal services
Supplies
Professional services
Contracted services
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUE
Interest on investments
12,733
INCOME BEFORE OPERATING TRANSFERS
36,053
OPERATING TRANSFER FROM OTHER FUNDS
10,000
OPERATING TRANSFER TO OTHER FUNDS
NET INCOME
46,053
RETAINED EARNINGS, JANUARY 1
205,348
RETAINED EARNINGS, DECEMBER 31
$ 251,401
-56-
$ 44,491
4,448
33,906
110,000
(39,808)
104,098
101,250
$ 205,348
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CITY OF SHOREWOOD, MINNESOTA
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997 AND 1996
Exhibit D-15
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 23,320 $ 29,458
Adjustments to reconcile operating income to net
cash provided by operating activities:
(Increase) decrease in assets:
Accounts receivable (1) (121)
Special assessments receivable 170 (620)
Increase (decrease) in liabilities:
Accounts payable (13,625)
Salaries payable 19 (28)
NET CASH PROVIDED BY OPERATING ACTIVITIES 23,508 15,064
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Operating transfers from other funds 10,000 110,000
Operating transfers to other funds (39,808)
NET CASH PROVIDED BY NONCAPIT AL FINANCING ACTIVITIES 10,000 70,192
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 11,010 5,880
INCREASE IN CASH AND CASH EQUIVALENTS 44,518 91,136
CASH AND CASH EQUIVALENTS, JANUARY 1 189,385 98,249
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 233,903 $ 189,385
-57-
CITY OF SHOREWOOD, MINNESOTA Exhibit D-16
LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
1997 1996
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 55,487 $ 52,376
Accrued interest receivable 2,475 2,084
Accounts receivable 184
Inventories, at cost 322,939 281,738
Prepaid items 11,594 1l,021
TOTAL CURRENT ASSETS 392,679 347,219
FIXED ASSET, AT COST 102,488 100,260
LESS ACCUMULATED DEPRECIATION (40,761) (30,210)
TOTAL FIXED ASSETS 61,727 70,050
TOTAL ASSETS $ 454,406 $ 417,269
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable $ 122,805 $ 73,768
Salaries and compensated absences payable 8,421 7,277
TOTAL CURRENT LIABILITIES 131,226 81,045
RETAINED EARNINGS
Unreserved 323,180 336,224
TOTAL LIABILITIES AND RETAINED EARNINGS $ 454,406 $ 417,269
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-17
LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1997 AND 1996
1997
1996
OPERATING REVENUE
Sales
Less cost of sales
$ 1,705,040
(1,362,986)
$ 1,876,660
(1,492,786)
TOTAL OPERATING REVENUE
383,874
342,054
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional service
Contracted services
Insurance
Utilities
Rent
Advertising
Other
181,364 179,397
9,077 8,370
10,551 10,376
2,688 2,381
1,732 1,923
13,545 13,692
23,799 24,239
140,519 113,514
7,154 9,159
13,745 11,825
404,174 374,876
(20,300) (32,822)
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other eX'}>ense
9,167 5,902
(1,911) (1,483)
7,256 4,419
(13,044) (28,403)
336,224 364,627
$ 323,180 $ 336,224
TOTAL NONOPERATING REVENUE (EXPENSES)
NET LOSS
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-18
LIQUOR FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,1997 AND 1996
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss $ (20,300) $ (32,822)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Other expense related to operations (1,911) (1,483)
Depreciation 10,551 10,376
(Increase) decrease in assets:
Accounts receivable (184) 1,483
Due from other funds 34,411
Inventory (41,201) (24,291)
Prepaid items (573) (186)
Increase (decrease) in liabilities:
Accounts and contracts payable 49,037 (5,381)
Salaries and compensated absences payable 1,144 3,453
Deferred revenue (34,411)
NET CASH USED BY OPERATING ACTIVITIES (3,437) (48,851)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition offixed assets (2,228) (3,097)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 8,776 9,174
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,111 (42,774)
CASH AND CASH EQUIVALENTS, JANUARY 1 52,376 95,150
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 55,487 $ 52,376
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING BALANCE SHEETS
DECEMBER 31,1997 AND 1996
Tonka Bay Waterford Center
1997 1996 1997 1996
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 58,853 $ 65,401 $(140,706) $ (101,675)
Accrued interest receivable 962 1,012
Accounts receivable 57 51
Inventories, at cost 73,996 49,822 112,897 112,395
Prepaid items 2,790 2,722 4,277 4,095
TOTAL CURRENT ASSETS 136,658 118,957 (23,481) 14,815
FIXED ASSETS, AT COST 3,750 2,250 76,403 75,875
LESS ACCUMULATED DEPRECIATION (211) (19) (22,663) (14,824)
NET FIXED ASSETS 3,539 2,231 53,740 61,051
TOTAL ASSETS $ 140,197 $ 121,188 $ 30,259 $ 75,866
LIABILITIES AND RETAINED EARNINGS (DEFICIT)
CURRENT LIABILITIES
Accounts and contracts payable $ 29,730 $ 20,625 $ 30,006 $ 22,667
Salaries and compensated absences payable 1,935 2,877 3,609 1,823
TOTAL LIABILITIES 31,665 23,502 33,615 24,490
RETAINED EARNINGS (DEFICIT)
Unreserved 108,532 97,686 (3,356) 51,376
TOTAL LIABILITIES AND
RETAINED EARNINGS (DEFICIT) $ 140,197 $ 121,188 $ 30,259 $ 75,866
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Exhibit D-19
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I Shorewood Plaza Totals
1997 1996 1997 1996
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$ 137,340 $ 88,650 $ 55,487 $ 52,376
I 1,513 1,072 2,475 2,084
76 184
136,046 119,521 322,939 281,738
I 4,527 4,204 11,594 11,021
279,502 213,447 392,679 347,219
I 22,335 22,135 102,488 100,260
(17,887) (15,367) (40,761) (30,210)
I 4,448 6,768 61,727 70,050
I $ 283,950 $ 220,215 $ 454,406 $ 417,269
I $ 63,069 $ 30,476 $ 122,805 $ 73,768
2,877 2,577 8,421 7,277
I 65,946 33,053 131,226 81,045
I 218,004 187,162 323,180 336,224
I $ 283,950 $ 220,215 $ 454,406 $ 417,269
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1997 AND 1996
Waterford Center
1997 1996
Tonka Bay
1997 1996
OPERATING REVENUE
Sales
Less cost of goods sold
$ 517,863
(413,067)
$ 579,992
(454,862)
$ 473,557
(375,769)
$ 513,525
(416,109)
104,796
125,130
97,788
97,416
GROSS PROFIT
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional services
Contracted services
Insurance
Utilities
Rent
Advertising
Other
55,648 56,090 61,066 59,976
1,859 1,445 2,525 3,524
192 19 7,839 7,769
992 877 848 752
1,064 1,186 358 320
3,796 3,779 4,474 4,492
6,641 7,590 8,901 8,647
14,699 13,843 85,086 70,954
1,331 2,396 3,171 3,682
3,414 3,518 4,597 3,673
89,636 90,743 178,865 163,789
7,780 7,045 (53,735) (58,993)
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other income (expense)
2,664
(319)
3,421
(355)
(943)
(997)
TOTAL NONOPERATING REVENUE
(EXPENSES)
(943)
(997)
2,345
3,066
(59,936)
(54,732)
9,390
10,846
NET INCOME (LOSS)
111,312
51,376
88,296
97,686
RETAINED EARNINGS, JANUARY 1
$ 51,376
$ (3,356)
$ 97,686
$ 108,532
RETAINED EARNINGS (DEFICIT), DECEMBER 31
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Exhibit D-20
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Shorewood Plaza Totals
I 1997 1996 1997 1996
$ 783,143 $ 713,620 $ 1,876,660 $ 1,705,040
I (621,815) (574,150) (1,492,786) (1,362,986)
161,328 139,470 383,874 342,054
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64,650 63,331 181,364 179,397
I 4,693 3,401 9,077 8,370
2,520 2,588 10,551 10,376
848 752 2,688 2,381
I 310 417 1,732 1,923
5,275 5,421 13,545 13,692
8,257 8,002 23,799 24,239
I 40,734 28,717 140,519 113,514
2,652 3,081 7,154 9,159
5,734 4,634 13,745 11,825
I 135,673 120,344 404,174 374,876
I 25,655 19,126 (20,300) (32,822)
I 5,746 3,238 9,167 5,902
(559) (221) (1,911) (1,483)
I 5,187 3,017 7,256 4,419
I 30,842 22,143 (13,044) (28,403)
187,162 165,019 336,224 364,627
I $ 218,004 $ 187,162 $ 323,180 $ 336,224
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING SCHEDULES OF CASH FLOWS
YEARS ENDED DECEMBER 31,1997 AND 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Other income (expense) related to operations
Depreciation
(Increase) decrease in assets:
Accounts receivable
Due from other funds
Inventory
Prepaid items
Increase (decrease) in liabilities:
Accounts and contracts payable
Salaries and compensated absences payable
Deferred revenue
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of fixed assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS (DEFICIT), JANUARY 1
CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31
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Exhibit D-21
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Waterford Center Shorewood Plaza Totals
I 1997 1996 1997 1996 1997 1996
$ (53,735) $ (58,993) $ 25,655 $ 19,126 $ (20,300) $ (32,822)
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(997) (943) (559) (221) (1,911) (1,483)
I 7,839 7,769 2,520 2,588 10,551 10,376
(51) 1,483 (76) (184) 1,483
I 34,411 34,411
(502) (13,414) (16,525) (3,406) (41,201) (24,291)
(182) (428) (323) 370 (573) (186)
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7,339 (2,761) 32,593 (3,265) 49,037 (5,381)
1,786 385 300 1,217 1,144 3,453
I (34,411) (34,411)
I (38,503) (101,313) 43,585 50,820 (3,437) (48,851)
I (528) (362) (200) (485) (2,228) (3,097)
I 5,305 4,655 8,776 9,174
I (39,031) (101,675) 48,690 54,990 3,111 (42,774)
I (101,675) 88,650 33,660 52,376 95,150
$ (140,706) $ (101,675) $ 137,340 $ 88,650 $ 55,487 $ 52,376
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CITY OF SHOREWOOD, MINNESOTA
AGENCY FUNDS
Agency funds are established to account for assets held by the City as an agent for others.
Deferred Compensation.. Fund - This fund is used to account for employee payroll
deferments and the related liability, that are deposited with outside companies in accordance
with the provisions of Internal Revenue Code Section 457.
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CITY OF SHOREWOOD, MINNESOTA
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 1997
Balance
January 1
ASSETS
Investments for deferred compensation
$ 230,140
LIABILITIES
Deferred compensation benefits payable
$ 230,140
-67-
Additions
Deductions
$ 74,756
$ 10,053
$ 74,756
$ 10,053
Exhibit E-l
Balance
December 31
$ 294,843
$ 294,843
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets of a governmental jurisdiction which are not
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
1997 1996
GENERAL FIXED ASSETS
Land $ 456,826 $ 456,826
Buildings and structures 1,347,876 1,322,073
Improvements other than buildings 1,337,388 1,314,258
Furniture and equipment 1,278,551 1,191,296
TOTAL GENERAL FIXED ASSETS $ 4,420,641 $ 4,284,453
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
COMP ARA TIYE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31, 1997 AND 1996
INVESTMENT IN GENERAL FIXED ASSETS
General fund
Capital projects funds
$ 1,170,125
3,250,516
$ 4,420,641
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
-68-
Exhibit F-l
$ 1,082,870
3,201,583
$ 4,284,453
CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31,1997
Exhibit F-2
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Buildings Improvements Furniture
and other than and
Total Land Structures Buildings Equipment
FUNCTION
General government $ 694,170 $ $ 305,372 $ 161,504 $ 227,294
Public works 2,309,040 153,500 919,581 184,702 1,051,257
Parks 1,417,431 303,326 122,923 991,182
TOTAL GENERAL
FIXED ASSETS $4,420,641 $ 456,826 $ 1,347,876 $ 1,337,388 $1,278,551
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31,1997
Exhibit F-J
General General
Fixed Assets Fixed Assets
January 1 Additions Deductions December 31
General government $ 671,034 $ 25,765 $ 2,629 $ 694,170
Public works 2,244,921 179,647 115,528 2,309,040
Culture and recreation 1,368,498 48,933 1,417,431
TOTAL GENERAL FIXED ASSETS $ 4,284,453 $ 254,345 $ 118,157 $ 4,420,641
-70-
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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 outstanding long-term indebtedness which is backed by the full faith and
credit of the government (excluding enterprise fund debt) is recorded and accounted for in a.
separate self-balancing account group titled the "General Long-Term Debt Account Group."
Also, this debt group includes certain liabilities not expected to be liquidated with
expendable available financial resources.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 31,1997 AND 1996
Exhibit G-l
1997
1996
AMOUNT AVAILABLE FOR DEBT SERVICE
Debt service funds
$ 478,192
$ 503,635
AMOUNTS TO BE PROVIDED
Future tax levies, assessments and tax increments
1,459,209
1,151,101
TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED
$ 1,629,293
$ 1,962,844
GENERAL LONG-TERM DEBT PAYABLE
Compensated absences payable $ 33,396 $ 29,344
Lease purchase payable 295,897 311,000
General obligation improvement bonds 680,000 822,500
Tax increment revenue bonds 620,000 800,000
TOTAL GENERAL LONG-TERM DEBT PAYABLE $ 1,629,293 $ 1,962,844
-71-
GENERAL OBLIGATION REVENUE BONDS
G.O. Water Revenue Bonds
G.O. Water Revenue Bonds
4.00-4.75
4.00-5.40
11-01-95
11-01-96
2-01-11
2-01-12
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31, 1997
Final
Interest Issue Maturity
Rates Date Date
5.40-5.85 11-01-91 2-01-02
3.50-4.45 12-01-93 2-01-04
GENERAL OBLIGATION IMPROVEMENT BONDS
G.O. Improvement Bonds of 1991
G.O. Improvement Bonds of 1993
TOTAL
TAX. INCREMENT REVENUE BONDS
Tax Increment Revenue Bonds of 1991
9.00
5-01-91
2-01-00
TOTAL REVENUE BONDS
TOTAL ALL BONDS
-72-
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Total Bonds
Year Principal Interest
1998 $ 500,000 $ 328,173
1999 755,000 615,762
2000 320,000 126,608
2001 310,000 111,515
2002 300,000 96,553
2003 205,000 84,334
2004 210,000 74,570
2005 180,000 65,244
2006 190,000 56,240
2007 185,000 46,945
2008 185,000 37,603
2009 185,000 28,040
2010 190,000 18,115
2011 180,000 8,135
2012 60,000 1,620
TOTAL $ 3,955,000 $ 1,699,457
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS
DECEMBER 31,1997
* 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.
-74-
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CITY OF SHOREWOOD, MINNESOTA
SECTION III
STATISTICAL SECTION
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CITY OF SHOREWOOD, MINNESOTA Table 1
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Total General Public Public Culture and Misc/ Debt
Year Expenditures Government Safety Works Recreation Transfers Service
1988 $ 1,898,594 $ 646,923 $ 523,717 $ 669,990 $ 57,964 $ $
1989 1,794,684 610,659 503,542 570,981 83,502 26,000
1990 2,065,01l 616,929 532,658 799,543 115,881
1991 2,241,781 665,152 548,343 375,406 142,168 510,712
1992 2,301,950 654,085 571,077 434,015 116,173 526,600
1993 2,184,260 668,410 580,153 436,224 119,473 380,000
1994 2,536,943 755,097 618,047 433,699 128,600 601,500
1995 2,326,231 723,098 650,703 432,759 115,446 404,225
1996 2,479,151 782,466 689,904 472,607 109,988 424,186
1997 2,614,217 821,257 744,072 451,756 115,193 444,395 37,544
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Table 2
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<:;ITY OF SHOREWOOD, MINNESOTA
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
1988 $ 1,984,148 $ 1,087,099 $ 330,408 $ 368,288 $ 91,385 $ 106,968
1989 1,976,961 1,118,886 207,129 405,022 105,244 140,680
1990 2,367,995 1,437,140 203,828 273,780 124,234 329,013
1991 2,237,115 1,627,874 168,560 153,681 101,200 185,800
1992 2,307,389 1,576,158 175,123 283,689 89,960 182,459
1993 2,429,910 1,515,633 247,557 426,102 70,135 170,483
1994 2,531,339 1,487,398 256,243 441,040 73,998 272,660
1995 2,378,009 1,489,822 184,857 440,720 68,765 193,845
1996 2,457,755 1,569,653 205,459 427,468 80,826 174,349
1997 2,670,175 1,703,509 236,672 450,185 76,340 203,469
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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
1988 $1,293,689 $1,236,536 95.58% $ 27,898 $1,264,434 97.74%
1989 1,300,881 1,249,332 96.04 46,405 1,295,737 99.61
1990 1,684,576 1,602,385 95.12 48,448 1,650,833 98.00
1991 1,856,988 *1,793,402 96.58 41,801 1,835,203 98.83
1992 1,864,577 1,819,238 97.57 55,917 1,875,155 100.57
1993 1,932,454 1,908,428 98.76 51,464 1,959,892 101.42
1994 1,518,735 1,505,212 99.11 13,886 1,519,098 100.02
1995 1,518,108 1,501,389 98.90 13,999 1,515,388 99.82
1996 1,598,713 1,577,353 98.66 16,946 1,594,299 99.72
1997 1,703,016 1,683,193 98.84 19,982 1,703,175 100.01
(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.
-78-
CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALVA TION, TAX LEVIES AND MILL RATES
(shown by year of tax collectibility)
1997 1996 1995 1994
(1) (1) & (2) (1) & (2) (1) & (2)
Assessed valuationfTax capacity $9,901,879 $9,115,960 $8,045,468 $7,396,104
Contribution to fiscal disparities pool (202,668 ) (178,279) (185,232 ) (205,973 )
Receivable from fiscal disparities pool 350,823 332,110 310,337 375,309
Tax increment (294.512 ) 066,094 ) (22.195 ) (317)
Taxable valuationtrotal tax capacity $9.755.522 $9.103.697 $8 148.378 $7.565.123
Tax levies
General
Debt service
(3)
$1,703,016 $1,573,930 $1,491,990 $1,491,888
24,783 26.118 26.847
$1.703.016 $1.598.713 $1.518.108 $1.518.735
Total
Mill ratesfTax
Capacity Rate
General
Debt service
19.655Rate
.249
18. 256Rate
.215
17.479Rate 17.252Rate
.179
Total
17.479Rate 17.431Rate
18.471Rate
19.904Rate
(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. 1988 information is stated in terms of assessed valuation and mill rates.
1989-1997 information is stated in terms of tax capacity and 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,
levied for the retirement of Storm Sewer District NO.2 improvement bonds. Storm Sewer District No. 2 was established
by the City of Shorewood in 1991. This portion of the debt service tax levy is only levied within Storm Sewer District No.
2 to retire the $31,000 bond issue used to finance the improvements within the District and is not reflected in the tax rates
above. Table 5 reports the tax rate of this District separately.
(3) Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the
State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be
reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of
taxation by the local government.
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I Table 4
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1993 1992 1991 1990 1989 1988
I (1) & (2) (1) & (2) (1)
$7,092,917 $7,681,118 $7,909,001 $7,033,863 $ 7,705,314 $55,691,698
I (227,686) (212,697) (227,257) (209,164 ) (218,604 ) (1,699,452 )
396,081 390,694 388,595 372,707 347,288 2,597,611
I $7.261.312 $7.859.115 $8.070.339 $7.197.406 $ 7.833.998 $56.589.857
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$1,909,253 $1,840,663 $1,840,663 $1,667,451 $ 1,282,956 $ 1,274,189
I 23,201 23,914 16,325 17.125 17,925 19,500
$1.932.454 $1.864.577 $1.856.988 $1.684.576 $ 1.300.881 $ 1.293.689
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20.638Rate 19.995Rate 20.274Rate 20.093Rate 16.282 Rate 22.481 Rate
I .159 .169 .180 .206 .227 .344
20.797Rate 20. 164Rate 20.454Rate 20.299Rate 16.509 Rate 22.825 Rate
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX MILL RATESrrAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(pER $1000 OF ASSESSED VALUE FOR YEARS 1988
AND TAX CAPACITY IN 1989-1997)
Year (1)
Taxes School District Watershed District
Payable City County No. 276 No. 277 NO.3 NO.4 Miscellaneous
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
1997 17.479 (2) 35.515 78.420 52.223 1.319 .860 6.149
(1)
(2)
(3)
Includes vocational school
Information for 1989-1997 is stated in terms of tax capacity rates due to 1988 legislative changes as explained in Table 4.
Includes market value levy of .077.
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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
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
138.882 138.423 138.423 112.685
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CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL T AXP AYERS
DECEMBER 31, 1997
Table 6
Percentage
1997 Tax of Total
Taxpayer Type of Business Capacity Tax Capacity
Northern States Power Company Utility $ 75,460 .77%
Minnetonka Country Club Commercial 69,838 .72
First State Bank Excelsior Commercial 69,150 .71
Shorewood Village Shopping
Center, Inc. Commercial 63,850 .65
Minnegasco Utility 59,188 .61
Waterford Partners LLC Commercial 57,666 .59
Two S Properties ResidentiaVCommercial 38,557 .40
Steven C & Mary Sue Simon Residential Lakeshore 33,125 .34
NSP Property Tax Dept. Utility 32,808 .34
MFT, Inc. Residential Lakeshore 31.738 ~
Total $ 531.380 5.46%
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1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
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
Levy Year's Levy Collected Year's Levy Collections to Levy
$ 644,367 $ 637,874 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 28,677 374,563 102.46
362,352 317,103 87.51 19,461 336,564 92.88
231,800 222,842 96.14 47,372 270,214 116.57
198,729 185,061 93.12 6,025 191,086 96.15
170,157 159,018 93.45 12,896 171,914 101.03
233,219 197,667 84.76 6,660 204,327 87.61
223,274 204,178 91.45 17,545 221,723 99.31
Fiscal
Year
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31,1997
Table 8
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$ 555.709.500
Market Value
$ 11,111,997
Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt
Less, (Note B)
Improvement Bonds
General Obligation Revenue Bonds
Tax Increment Revenue Bonds
Total Debt Applicable to Debt Limit
$ 3,955,000
(680,000 )
(2,655,000 )
(620,000 )
Legal Debt Margin
$ 11.111.997
Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75, no municipality, except a school district
or a city of the first class, shall incur or be subject to a net debt in excess of 2.0 percent of the market value of taxable property in
the municipality."
Note (B): M.S.A. Section 162.18 (Bond; Municipal State Aid)
"Subdivision 2. Not included in net debt of municipality for purpose of any statutory or 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."
M.S.A. Section 475.51 (Definitions:)
"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the
following:
(5)
(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.
(2)
Warrants or orders having no definite or fixed maturity.
(3)
Obligations payable wholly from the income from revenue-producing conveniences.
(4)
Obligations issued to create or maintain a permanent improvement revolving fund.
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.
(6)
Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations
other than those deductible under this subdivision.
(7)
All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in
computing the net debt of the municipality."
*
After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24.
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CITY OF SHOREWOOD, MINNESOTA Table 9
RATIO OF NET BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Ratio of Net
Bonded Debt Net
(1) Assessed Less Amount to Assessed Bonded
Fiscal Estimated Value!fax (2) Gross ReseIVed for Net Values! Debt
Year Population Capacity Bonded Debt Debt SeIVice Bonded Debt Tax Capacity Per Capita
1988 5094 $56,589,857 $4,530,000 $ 2,688,009 $1,841,991 .0325:1 361.60
1989 5815 7,833,998 2,990,000 1,510,303 1,479,697 .1889:1 254.46
1990 5917 7,197406 2,720,000 1,902,837 817,163 .1135:1 138.10
1991 6000 8,070,339 3,411,000 2,311,859 1,099,141 .1362: 1 183.19
1992 6135 7,859,115 2,496,000 1,742,742 753,258 .0958: 1 122.78
1993 6322 7,261,312 2,546,500 1,999,197 547,303 .0754: 1 86.57
1994 6430 7,565,123 1,850,500 1,485,579 364,921 .0482: 1 56.75
1995 6614 8,148,378 3,524,500 1,419,732 2,104,768 .2583: 1 318.17
1996 6794 9,103,697 3,602,500 503,635 3,098,865 .3404:1 456.12
1997 6889 9,755,522 3,335,000 478,192 2,856,808 .2928: 1 414.69
(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. 1988 information is stated in terms of assessed valuation and
mill rates. 1989-1997 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 Tax Increment Revenue Bonds
(totaling $620,000) are not included in the gross bonded debt as they are not backed by the full faith and credit of the
City.
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CITY OF SHOREWOOD, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES.
Table 10
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Percent of
Debt Service
Total Total General to General
Year Principal Interest Debt Service Expenditures. EXPenditures
1988 $ 435,000 $ 274,636 $ 709,636 $ 1,898,594 37.38%
1989 2,625,000(2) 253,113 2,878,115 1,794,684 160.37
1990 260,000 175,098 435,098 2,065,011 21.07
1991 290,000 173,495 463,495 2,241,781 20.68
1992 905,000 167,163 1,072,163 2,301,950 46.58
1993 264,500 141,889 406,389 2,184,260 18.61
1994 681,000(3) 120,862 801,862 2,536,943 31.61
1995 231,000 99,823 330,823 2,326,231 14.22
1996 767000(4) 72,461 839,461 2,479,151 33.86
,
1997 142,500 39,921 182,421 2,614,217 6.98
(I)
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)
Principal included bonds defeased in 1989
(3)
Principal included bonds called in 1994
(4)
Principal included bonds called in 1996
*
Includes General Fund only
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31,1997
Table 11
Amount
Gross Bonded Percentage of Net Debt
Debt Used for Applicable Applicable
Net Debt Calc Net Debt District to District
Direct Debt*
City of Shorewood $ 3.335.000 $ 2.856.808 100.00 % $ 2.856.808
Overlapping Debt
Hennepin County 106,385,000 100,776,398 1.00 1,007,616
Hennepin Suburban Park District 12,225,000 9,669,528 1.34 129,193
School District #276 57,395,000 38,725,000 19.14 7,410,910
School District #277 13,200,000 12,724,560 2.07 263,848
Metropolitan Council 118.555.000 83.155.873 -2Q 412.586
Total Overlapping Debt 307.760.000 245.051.359 ~ 9.224.154
Total Direct and Overlapping Debt $311.095.000 $247.908.167 4.87% $12.080.962
*
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.
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net Ratio of Net
Fiscal Gross (1) Revenue Debt Service Revenue to
Year Revenue Expenses Available Principal Interest Total Debt Service
1988 $ 158,474 $ 135,897 $ 22,577 $ 10,000 $ 8,834 $ 18,834 1.199 to 1
1989 176,719 110,987 65,732 10,000 8,125 18,125 3.627 to 1
1990 192,682 116,289 76,393 10,000 7,293 17,293 4.418 to 1
1991 172,569 126,614 45,955 10,000 6,493 16,493 2.786 to 1
1992 199,891 125,714 74,177 10,000 5,823 15,823 4.688 to 1
1993 172,624 139,490 33,134 10,000 4,860 14,860 2.230 to 1
1994 262,892 159,179 103,173 15,000 4,035 19,035 5.449 to 1
1995 198,566 166,970 31,596 15,000 3,486 18,486 1.710 to 1
1996 272,678 170,485 102,193 15,000 74,473 89,473 1.142 to 1
1997 252,866 180,601 72,265 125,000 120,737 245,737 .294 to 1
(1)
Excluding depreciation and interest on bonds
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(1)
Commercial (1)
Construction Residential Construction
Fiscal Number
Year Value of Units Value
1988 $ 401,004 157 $ 29,040,667
1989 89 16,949,136
1990 20,000 82 16,252,990
1991 69 14,044,120
1992 55 10,899,687
1993 102 17,941,776
1994 960,000 86 16,530,925
1995 2,030,000 40 10,167,210
1996 1,350,000 37 9,393,436
1997 695,000 41 11,825,463
Sources
(1) City Planning and Inspection Department
(2) County Assessor's Office
(3) 1st State Bank of Excelsior
(Bank deposits are not shown for years 1988-1995 as no banks are located within the City limits during this period.)
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Year of incorporation
Form of government
Fiscal year begins
Area of city
Population
1996 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 31,1997
Table 14
1956
Council-Administrator
Adopted May 14, 1956
Janwuy 1
6.0 Square Miles
6,889
5,917
4,646
4,223
38.1
9.8
1.7
2.7
15
$65.00/quarter
56.2
177
671
$17,991,397
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
1,028
403,000 gallons
15.2
4,680,000 gallons
165
$1.45/1000 gallons
22
20
42
5,066
4,262
84.1%
-92-