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1999 - Comp. Annual Financial Report I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPREHENSNE ANNUAL FINANCIAL REPORT for the YEAR ENDED DECEMBER 31, 1999 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,1999 BRADLEY NIELSON, ACTING CITY ADMINISTRATOR REPORT PREPARED BY ALAN J. ROLEK, FINANCE DIRECTOR/TREASURER MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31,1999 Exhibit Page No. I. INTRODUCTORY SECTION Elected and Appointed Officials Organizational Chart Letter of Transmittal I - VI Certificate of Achievement for Excellence in Financial Reporting II. FINANCIAL SECTION Independent Auditor's Report 2 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 3-4 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types 2 5-6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 3 7 Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 4 8 Combined Statement of Cash Flows - All Proprietary Fund Types 5 9 Notes to Financial Statements 10 - 24 Combining and Individual Fund and Account Group Financial Statements and Schedules General Fund Comparative Balance Sheets A-I 25 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual A-2 26 - 31 Debt Service Funds Combining Balance Sheet B-1 32 - 33 Combining Statement of Revenue, Expenditures and Changes in Fund Balance B-2 34 - 35 (Deficit) Capital Projects Funds Combining Balance Sheet C-l 36 - 37 Combining Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit) C-2 38 - 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 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 I CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1999 I I Recycling Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows I Stormwater Management Utility Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows I I Liquor Fund Comparative Balance Sheets Comparative Statements of Revenue, Expenses and Changes in Retained Earnings Comparative Statements of Cash Flows Combining Balance Sheets Combining Schedules of Revenue, Expenses and Changes in Retained Earnings (Deficit) Combining Schedules of Cash Flows I I General Fixed Asset Account Group Comparative Schedules of General Fixed Assets - by source Schedule of General Fixed Assets - by function and activity Schedule of Changes in General Fixed Assets - by function I General Long-term Debt Account Group Comparative Statements of General Long-term Debt Schedule of Bonds Payable Schedule of Debt Service Requirements I I 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 Capacity Rates - Direct and Overlapping Governments Principal Taxpayers Special Assessment Levies and Collections Computation of Legal Debt Margin Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Computation of Direct and Overlapping Debt Revenue Bond Coverage Property Value and Construction Miscellaneous Statistics I I I I I I I I Exhibit Page No. D-I0 52 D-ll 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 E-2 68 E-3 69 F-l 70 F-2 71 - 72 F-3 73 - 74 1 75 2 76 3 77 4 78 - 79 5 80 - 81 6 82 7 83 8 84 9 85 10 86 11 87 12 88 13 89 - 90 14 91 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION I INTRODUCTORY SECTION I I I I I I I CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1999 Elected Officials Term Expires Woody Love Kristi Stover John Garfunkel Christine Lizee Scott Zerby Mayor Council Member Council Member Council Member Council Member 2000 2000 2000 2002 2002 I I Appointed Officials Bradley Nielsen Alan J. Rolek Acting City Administrator Finance Director/Treasurer I I I I I I I I I I -1- ------------------- ORGANIZATIONAL CHART - CITY OF SHOREWOOD I CITIZENS I I CITY ATIORNEY ~:: - -- CITY COUNCIL BOARDS & COMMISSIONS " - PLANNING COMMISSION CITY ADMINISTRATOR I - PARK COMMISSION I I I I I I I LIQUOR ENGINEERING FINANCE ADMINISTRATION PLANNING PUBLIC PUBLIC SAFETY & ZONING WORKS (CONTRACT) - Off-Sale - Engineering Svcs. - Personnel - General Government - Planning - Building & Grounds - Police - 4-City Joint Retail - Project Mgmt. - Accounting - Licensing - Zoning - Recycling (Contract) Services * - Payroll - Elections Administration - Tree Maintenance - Patrol - Investments - Records - Property - Park Maintenance - Disaster - Utility Billing - Legal Publications Records - Street Mainenance Preparedness - Accts. Payable - Public Information - Inspection - Equipment Maintenance - Investigation - Accts. Recble. - Recreation Programs - Stormwater System - Public Service - Special - Park Planning - Street Lighting - Fire - Excelsior! Assessments (Contract) - SanitationlWeeds Mound - Budgeting - Assessor (Contract) - Janitor Services - Fire prevention! -MIS - Cable TV - (Contract) firefighting - Purchasing Franchise - Utility Maintenance - Animal Control - (Contract) Chanhassen * Mayor is City's representative on joint governing board. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD · SHOREWOOD, MINNESOTA 55331-8927 · (952) 474-3236 FAX (952) 474-0128. www.cLshorewood.mn.us. cityhall@cLshorewood.mn.us June 22, 2000 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, 1999, 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 fmancial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's fmancial activities have been included. 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 section 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 Office. This report includes all funds and account groups of the City. The fund types included are governmental and proprietary. Within the account groups are general fixed assets and general long-term debt. The City provides its residents and businesses with a full range of municipal services consisting of police, fire, public works, parks and general administrative services. The City also operates five enterprises: a water utility, sewer utility, recycling utility, stormwater management utility and an off- sale liquor operation, consisting of three store sites. The criteria used in determining the component units to be included with the City as part of its reporting entity is consistent with those required by the Governmental Accounting Standards Board Statement No. 14, "The Financial Reporting Entity". Based on these criteria, the City has no component units. All funds and account groups of the City are included in this report, and no component units are reported herein. ECONOMIC CONDITION AND OUTLOOK The City of Shorewood is a suburb of the City of Minneapolis and is located 25 miles southwest of the central business district on the southern shore of Lake Minnetonka. The City is predominantly a residential community with limited commercial businesses and two commercial shopping malls. The City is 6 square miles in area and has an estimated population of7,008. While the City has experienced an accelerated rate of growth in residential development during the 1980's, the growth rate has slowed during the 1990's. The City, which is currently 90% developed, will continue to experience growth in it's residential base in the future, but because of the limited availability of large tracts of land, this will come at a reduced rate and will be much smaller developments than in the past. n I t.J PRINTED ON RECYCLED PAPER MAJOR INITIATIVES FINANCIAL AND MANAGEMENT EMPHASIS Emphasis on Governance The City Council in its leadership role is effectively establishing a focus for city government in Shorewood. The Council has committed to a strong set of values by which decisions are to be made. It has adopted a Statement of Purpose and has established overall goals and expectations for the City. It has identified issues facing the City and prioritized them so that the staff can efficiently and effectively allocate time and resources. The City Council's calendar consists of three phases. The first phase is Planning, which includes review of the previous years work plan, the City's Comprehensive Plan Executive Summary and the statements of Purpose and Values. It also includes identification and prioritization of issues for the next twelve months. The second phase is that of Programming and Capital Finance Planning. Each year the five-year Capital Improvement Program is reviewed and updated based upon priorities established in phase one. Any changes to the Comprehensive Plan are made based upon the phase one decisions. The third phase is Budgeting. The operating budget is established based on decisions made in the first two phases. A budget format is being utilized which provides information and analytical data to the City Council and other readers. It defmes 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. Emphasis on System Improvements The City continues to improve on communications through the Communications Plan adopted in 1997. The Communications Program includes: . Redesigned public notices which meet legal requirements yet are easier to read and understand. . Redesigned City newsletter which is distributed monthly rather than quarterly, as had been the practice previously. . Press releases on current issues, projects and special events. . Emphasis on informal information meetings. . Improved City web page to make it more aesthetically pleasing and packed with useful information. . Utilization of the cable access channel bulletin board to inform the public of city activities. . Publicusage of the "Shoreline" phone message line is promoted heavily. . Numerous educational brochures are produced and mailed with the monthly newsletter. . Public feedback forms for those who have had contact with the City are provided to encourage the public to share their experience with city services and personnel. . A voice mail information system accessible by residents 24 hours a day to receive timely information on city services and events. Emphasis on Public Improvements and Programs The City Council established a Land Conservation and Environment Committee in 1999. The committee was created for a 3- year period to study and to make recommendations regarding ongoing land conservation and environmental policies for the City. Updating the Comprehensive Plan and completing a stormwater management plan were major efforts in 1999. Both are to be completed in 2000. Capital improvements in 1999 included repairing the retaining wall at Old Market Road/TH 7 and TH 7 accesses closures. A new dump truck was purchased to replace an aging unit, and a portable backup generator was ordered for the water and sewer systems to serve as a safeguard against prolonged power outages. Sanitary sewer lift stations were wired to connect to backup power. The Park Commission continued its process for considering trails in Shorewood. The process involves citizens early and often in deciding when and if trails are appropriate along streets and roadways. A community visioning session, telephone survey and a series of focus group meetings were undertaken to begin the process. Steps in the process in 1999 included public open forums, walks with citizens along potential trail routes, and citizen involvement in trail design. II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Emphasis on Efficiently, Effectively Meeting Service Needs 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, disaster preparedness and other areas of mutual concern. The Lake Minnetonka area cities continue to work jointly to address these mutual problems. The City, along with the Cities of Excelsior, Deephaven, Greenwood and Tonka Bay, established a task force to study a more efficient, responsive and equitable method to deliver fIre protection services to the south Lake Minnetonka area. Alternatives being considered in lieu of the present contractual arrangement with Excelsior are a joint powers fIre department or the establishment if a fIre service district. The task force will continue to work in the coming year to develop a solution which will best serve the cities far into the future. FINANCIAL INFORMATION INTERNAL CONTROLS Management of the City is responsible for establishing and maintaining an internal control structure in the accounting system designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that fair, reliable and accurate accounting data is compiled to allow for the preparation of fInancial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefIts; 2) the valuation of costs and benefIts requires estimates and judgments by management. As part of the City's annual audit, the internal control system is evaluated to the extent necessary for audit purposes and changes are recommended when needed. BUDGETING CONTROLS The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund are included in the annual appropriated budget. The 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 fmancial section of this report, the City continues to meet its responsibility for sound fInancial management. GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of General Fund and Debt Service Fund revenues for the fIscal year ended December 31, 1999 and the amount of increases or decreases in relation to the prior year's revenues. Increase (Decrease) from 1998 Revenues and Other Financing Sources Amount Percent of Total General Property Taxes $ 2,204,851 67.51% Licenses and Permits 221,555 6.78 Inter governmental 468,969 14.36 Charges for Services 43,348 1.33 Fines and Forfeitures 94,115 2.88 Special Assessments 93,407 2.86 Interest on Investments 61,712 1.89 Miscellaneous 31,672 0.97 Operating Transfers In 46.400 1.42 Total $ 3.266.029 100.00% $ 93,708 (1,693) (63,390) 9,052 20,778 (10,701) (45,114) 1,734 33.400 $ 37.774 III I Overall revenues increased by $37,774 from 1998 to 1999. The largest increase in revenue in 1999 from 1998 was in general property taxes. The primary reason for this is that the property tax levy for general purposes increased by $79,240, or 4.45%, I from 1998. This was a planned, budgeted increase for the year, and tax collections, at 100.38%, were on target with budget. Fines and forfeitures increased due to a targeted traffic enforcement initiative. Charges for services increased in 1999 due to a greater amount of engineering services being charged out to developers and city improvement projects. Budgeted operating I transfers into the General Fund also increased from 1998 to 1999. Intergovernmental revenue fell in 1999 due mainly to a one-time receipt of FEMA disaster relief aid in 1998 for damage sustained storms in Spring, 1998. Licenses and permits experienced a decrease in 1999. While building permit revenue I exceeded budget in 1999, these revenues did not match the brisk activity in 1998. Interest revenue fell in 1998 due to lower interest rates and lower available cash balances. Due to market conditions, umealized losses were recorded as a result of market value adjustments to the city's investments in accordance with GASB 31, which had a negative impact on investment I income. Expenditures and Other Uses Amount Percent of total I Current: General Government Public Safety Public Works Parks and Recreation Capital Outlay: Debt service: Principal Interest Operating Transfers: $ 850,852 26.94 % $ (106,833) 799,515 0.25 11,262 424,246 0.13 (80,994) 114,435 0.04 4,148 1,979 0.00 (1,676) 310,665 0.10 (23,772) 211,567 0.07 (2,184) 492.800 0.15 3.775 $ 3.206.059 101.00 % $ 096.274) I I I I Total Overall expenditures were significantly lower in 1999 from 1998. This is largely due to two factors: the payment of a court awarded settlement in a lawsuit in and expenses incurred to clean up 1998 storm damage. I General Government expenditures decreased in 1999 from 1998 due largely additional legal services charges and the payment of the court award. Public Safety expenditures for police and fire services increased marginally in 1999 primarily due to salary adjustments. Public Works expenditures were lower in 1999 due mainly to storm cleanup costs incurred in 1998. Park and recreation expenditures were slightly greater in 1999. Capital outlay was somewhat lower for the year. I I The City Council has continued its plan to accumulate resources for future capital equipment and improvement projects. These amounts were transferred to various capital projects funds and will be applied to future equipment acquisitions and capital improvements. Operating transfers increased marginally from 1998. Budgeted transfers for capital improvement purposes increased in 1999 from $489,025 to $492,800. I I I IV I The General Fund balance increased by $108,305 in 1999, or 7.43%. The fund balance as of December 31, 1999 is $1,566,351. The fund balance is designated for working capital requirements through the ftrst six months of the year. It is important for the City to maintain an adequate fund balance as a reserve to meet expenditures in the General fund until property tax proceeds are received in July. The fund balance now stands at 56.99% of the current year budget. The policy of the City is to maintain a fund balance at 40% to 50% of the current budget. The City Council will continue to manage the fund balance at this level. I I I I GENERAL FUND BALANCE ENTERPRISE OPERATION I The City's enterprise fund activities for 1999 are summarized as follows: Operating Operating I I I I revenues Water Sewer Recycling Stormwater Liquor Tonka Bay Waterford Center Shorewood Plaza $454,227 742,446 89,563 46,032 expenses $352,940 621,120 84,316 39,040 118,147 188,142 167,126 Operating income (loss) $101,287 121,326 5,247 6,992 4,335 (14,963) 19,464 I Generally accepted accounting principles require the depreciation of contributed assets, which results in net losses in some cases. However, past and present City fmancial practice does not include the recovery of such depreciation in the setting of utility rates, which, in effect, would recover that cost a second time. The City's utility rate setting is done with reference to the working capital of the fund and assumes continued customer contributions through special assessments. 122,482 173,179 186,590 I The Liquor Fund has experienced a net operating proftt in 1999 after losses in each of the last four years. The addition of a full time liquor operations manager and tighter controls within the operation accounts for the return to profttability for the operation. The Liquor Committee and management continue to explore avenues to return greater proftt margins in the future. I DEBT ADMINISTRATION I As of December 31,1999, the City's debt outstanding totaled $2,985,000. Of this total, $410,000 are general obligation special assessment bonds issued to ftnance the construction of sanitary sewer, street, water and storm sewer improvements. I The City issued $2,780,000 in general obligation water revenue bonds in 1995 and 1996 to fmance water system extensions and improvements. Total outstanding general obligation water revenue bonds at year-end is $2,290,000. The bonds will be repaid from special assessments on affected properties and from Water Fund revenues. I I I I I In 1990, Tax increment revenue bonds of $920,000 were issued for construction of public improvements in the Waterford commercial development. These bonds were sold directly to the developer. As the developer has direct control over the pace of development, retirement of the debt was to be made on a "pay-as-you-go" basis from tax increments generated by the development. Because these revenue bonds are not backed by the full faith and credit of the City, in the absence of tax increments from Tax Increment Financing District No.1, the City has no obligation to repay the bonds. The City ftrst received tax increments on this district in 1994. At year end, $285,000 of this issue remained outstanding. The remaining bonds expire on February 1, 2000. No further revenue will be derived from the district, which expires in April, 2000, and, accordingly, no further redemption of outstanding bonds is anticipated. The City's bond rating as rated by Moody's Investor Service is "AI" on general obligation bond issues. Reasons cited by Moody's for this rating include the development and implementation of a ftve-year capital improvement plan, low outstanding debt, sound ftnancial management, and anticipated maintenance oflow debt ratios by the City. v I CASH MANAGEMENT The City of Shorewood subscribes to the "pooled cash" concept of investing which means that all funds with cash balances participate in an investment pool. This permits some funds to be overdrawn and other funds to show positive cash balances, with the City overall maintaining a positive cash balance. This pooled cash concept provides for investing of greater amounts of money at more favorable rates. Interest earnings are then allocated to the participating funds. During 1999, the City of Shorewood earned $218,993 in interest revenue. I I RISK MANAGEMENT I The City of Shorewood's worker's compensation insurance and its general property and liability coverage are provided through the League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT worker's compensation program is a joint self- insurance plan designed to lower and stabilize cities worker's compensation costs and to assure that cities have a source of coverage available. I Each participating city deposits with the LMCIT its worker's compensation deposit premium for the policy year. The deposit premium is calculated using standard manual rates with the applicable volume discounts and experience modification factor. From these deposits, LMCIT purchases reinsurance to protect the program from catastrophic and abnormal payment claims. The balance of the deposits and reserves are invested, with the earnings accruing to the benefit of all participants. LMCIT's reserves and rates are reviewed annually by an actuary to help assure that the program remains fmancially strong. I I OTHER INFORMATION I INDEPENDENT AUDIT I Minnesota State Statutes require an annual audit of the City's accounts by the Minnesota State Auditor or by independent certified public accountants. The auditor's report on the general purpose fmancial statements and schedules is included in the financial section of this report. I CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Shorewood for its comprehensive annual financial report for the fiscal year ended December 31, 1998. I In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual fmancial report, whose contents conform to program standards. Such reports' must satisfy both generally accepted accounting principles and applicable legal requirements. I I A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. I ACKNOWLEDGMENTS I I would again like to acknowledge the efforts of the city staff, especially the Finance Department staff, and the City's independent auditor, without whose assistance and cooperation the timely preparation of the Comprehensive Annual Financial Report would not have been possible. I Respectfully Submitted, I Alan 1. Rolek Finance Director/Treasurer I VI I I I I I I I I I I I I I I I I I I I I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shorewood, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1998 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. {.7"l ~ 3;t.... w?/ ~ L President t#7-/~ Executive Director I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION II FINANCIAL SECTION I I I I I I I I I I I I I I I I I I I 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the accompanying general purpose fmancial statements of the City of Shorewood, Minnesota, as of and for the year ended December 31, 1999 as listed in the table of contents. These general purpose fmancial statements are the responsibility of the City of Shorewood, Minnesota's management. Our responsibility is to express an opinion on these general purpose fmancial 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 of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose fmancial 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 fmancial position of the City of Shorewood, Minnesota as of December 31, 1999, and the results of its operations and the 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 14,2000 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 of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund fmancial 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 14, 2000 Minneapolis, Minnesota ~ ~ V&- {1J1~r5JUP ABDO, ABDO, EICK & MEYERS, LLP Certified Public Accountants 612.835.9090 . Fax 612.835.3261 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the financial statements are intended to provide an overview and broad perspective of the City's financial position and operations. These statements present a summary set of information needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in financial planning. The following general purpose financial statements are presented: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types CITY OF SHOREWOOD , MINNESOTA I COMBINED BALANCE SHEET ALL FUND TYPES ACCOUNT GROUPS I DECEMBER 31, 1999 (With Comparative Totals for December 31, 1998) Governmental Fund Types I Debt Capital I General Service Projects ASSETS AND OTHER DEBITS ASSETS I Cash and temporary investments $ 1,640,583 $ 363,923 $ 1,745,300 Accrued interest receivable 16,340 2,752 15,259 Delinquent taxes receivable 49,334 5,935 Accounts receivable 29,506 5,000 I Special assessments receivable 1,859 127,842 4,029 Note receivable Due from other funds 24,194 I Inventories, at cost Prepaid items 34,450 Fixed assets, net I Bond discount, net OTHER DEBITS Amount available in debt service funds Amounts to be provided for debt retirement I TOTAL ASSETS AND OTHER DEBITS $ 1,796,266 $ 505,452 $ 1,764,588 LIABILITIES, EQUITY AND OTHER CREDITS I LIABILITIES Accounts and contracts payable $ 32,074 $ $ 101,922 I Salaries and compensated absences payable 40,454 Refundable deposits payable 133,616 Deferred revenue 23,771 127,381 4,029 Due to other funds 1,428 22,766 I Capital lease payable General obligation bonds payable Tax increment bonds payable I General obligation revenue bonds payable TOTAL LIABILITIES 229,915 128,809 128,717 I EQUITY AND OTHER CREDITS Investment in general fixed assets Contributed capital I Retained earnings Unreserved Fund balance (deficit) I Reserved 34,450 376,643 Unreserved Designated 1,531,901 1,693,374 I Undesignated (57,503) TOTAL EQUITY AND OTHER CREDITS 1,566,351 376,643 1,635,871 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 1,796,266 $ 505,452 $ 1,764,588 I See Notes to Financial Statements. -3- I CITY OF SHOREWOOD, MINNESOTA I COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES I YEAR ENDED DECEMBER 31, 1999 (With Comparative Totals for the year ended December 31, 1998) I Debt Capital I General Service Projects REVENUE Property taxes $ 1,870,727 $ 334,124 $ I Licenses and permits 221,555 Intergovernmental 468,969 40,728 Charges for services 43,348 Fines and forfeitures 94,115 I Special assessments 93,407 1,731 Interest on investments 52,890 8,822 48,788 Miscellaneous 31,672 46,407 I TOTAL REVENUE 2,783,276 436,353 137,654 EXPENDITURES I Current General government 850,852 I Public safety 799,515 Public works 424,246 Culture and recreation 114,435 Capital outlay 1,979 735,635 I Debt service Principal 20,665 290,000 Interest and service charges 16,879 194,688 I TOTAL EXPENDITURES 2,228,571 484,688 735,635 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 554,705 (48,335) (597,981) I OTHER FINANCING SOURCES (USES) I Operating transfers in 46,400 511,450 Operating transfers out (492,800) (66,650) TOTAL OTHER FINANCING SOURCES (USES) (446,400) 444,800 I EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND I OTHER FINANCING USES 108,305 (48,335) (153,181) FUND BALANCE, JANUARY 1 1,458,046 424,978 1,789,052 I FUND EQUITY TRANSFER IN 11,633 FUND EQUITY TRANSFER OUT (11,633) FUND BALANCE, DECEMBER 31 $ 1,566,351 $ 376,643 $ 1,635,871 I See Notes to Financial Statements. I -5- I I Exhibit 2 I I Totals (Memorandum Only) I 1999 1998 I $ 2,204,851 $ 2,111,143 221,555 223,248 509,697 571,824 43,348 34,296 I 94,115 73,337 95,138 105,950 110,500 203,456 I 78,079 60,938 3,357,283 3,384,192 I I 850,852 957,685 799,515 788,253 424,246 505,240 114,435 110,287 I 737,614 612,691 310,665 334,437 I 211,567 213,751 3,448,894 3,522,344 I (91,611) (138,152) I 557,850 771,275 (559,450) (781,275) I (1,600) (10,000) I (93,211) (148,152) I 3,672,076 3,820,228 11,633 23,204 (11,633) (23,204) I $ 3,578,865 $ 3,672,076 I I -6- CITY OF SHOREWOOD, MINNESOTA Exhibit 3 I STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31,1999 I Variance - Favorable I Budget Actual (Unfavorable) REVENUE General property taxes $ 1,862,058 $ 1,870,727 $ 8,669 I Licenses and permits 164,900 221,555 56,655 Intergovernmental 467,655 468,969 1,314 Charges for services 52,100 43,348 (8,752) I Fines and forfeitures 80,000 94,115 14,115 Interest on investments 95,000 52,890 (42,110) Miscellaneous revenue 25,700 31,672 5,972 I TOTAL REVENUE 2,747,413 2,783,276 35,863 EXPENDITURES I Current General government 851,476 850,852 624 I Public safety 814,895 799,515 15,380 Public works 445,786 424,246 21,540 Culture and recreation 148,606 114,435 34,171 I Capital outlay 3,106 1,979 1,127 Debt service 37,544 37,544 TOTAL EXPENDITURES 2,301,413 2,228,571 72,842 I EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 446,000 554,705 108,705 I OTHER FINANCING SOURCES (USES) Operating transfers in 46,400 46,400 I Operating transfers out (492,800) (492,800) TOTAL OTHER FINANCING SOURCES (USES) (446,400) (446,400) I EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND I OTHER FINANCING USES $ (400) 108,305 $ 108,705 FUND BALANCE, JANUARY 1 1,458,046 I FUND BALANCE, DECEMBER 31 $ 1,566,351 I See Notes to Financial Statements. I -7- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 4 COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1999 OPERATING REVENUE Sales Less cost of sales Enterprise $ 2,~20,165 (1,837,914) 482,251 1,094,168 238,100 1,814,519 253,128 24,282 35,676 358,898 45,176 199,232 710 20,519 14,418 76,391 334,373 149,822 7,983 50,223 1,570,831 243,688 36,602 108,493 52,550 (117,642) 80,003 323,691 10,000 (8,400) 325,291 1,375,918 $ 1,701,209 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 INCOME NONOPERATING REVENUE (EXPENSE) Special assessments Interest on investments Other income Interest expense TOTAL NONOPERATING REVENUE (EXPENSE) NET INCOME BEFORE OPERATING TRANSFERS OPERATING TRANSFERS FROM OTHER FUNDS OPERATING TRANSFERS TO OTHER FUNDS NET INCOME RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 See Notes to Financial Statements. -8- CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1999 CASH FLOWS FROM OPERATING ACTNITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Other income related to operations Amortization Depreciation (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 ACTNITIES CASH FLOWS FROM NON CAP IT AL FINANCING ACTNITIES Operating transfers from other funds Operating transfers to other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTNITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTNITIES 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 ACTNITIES CASH FLOWS FROM INVESTING ACTNITIES Interest on investments INCREASE IN CASH AND CASH EQUN ALENTS CASH AND CASH EQUN ALENTS, JANUARY 1 CASH AND CASH EQUN ALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTNITIES Property and equipment acquired from developers See Notes to Financial Statements. -9- Exhibit 5 I I I I I I I Enterprise $ 243,688 52,550 1,404 358,898 5,838 9,853 78,094 2,510 42,659 2,599 I I I I I I I I I I I I 798,093 10,000 (8,400) 1,600 46,500 (180,000) (117,642) (108,630) 737 225,882 (133,153) 125,705 792,245 3,061,684 $ 3,853,929 $ 38,798 I I Note 1: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,1999 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Shorewood is a statutory city operating in accordance with the Plan A form of government. As required by generally accepted accounting principles, the fmancial statements of the reporting entity include those of the City of Shore wood (the primary government) and its component units. The City of Shore wood does not have any component units requiring either a blended or discrete presentation. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with fmance-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. Goverrn.nental 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 fmancial 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 fmancial resources of the City, except those required to be accounted for in another fund. The debt service funds account for the servicing of general long-term debt not being fmanced by proprietary funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being fmanced 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 issued on or before November 30, 1989 in accounting and reporting for its proprietary operations. Proprietary funds include the following fund type: -10- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I I Enterprise funds are used to account for those operations that are fmanced and operated in a manner similar to I 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. Account Groups. The general fIXed assets account group is used to account for fixed assets not accounted for I 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 valued at fair value. 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, July, and December each year. Taxes payable on homestead property, as defmed by State statutes, are partially reduced by a homestead and agricultural credit aid. The credit is paid to the City by the State ofMirmesota 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 fmancing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All special assessments receivable are offset by a deferred revenue liability. Receivables and Payables Transactions between funds that are representative oflending/borrowing 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 inter fund loans). All other outstanding balances between funds are reported as "due to/from other funds." Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available fmancial resources. -11- I I I I I I I I I I I I I I I I I Note 1: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 ofnorrnal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the general fixed assets group or capitalized in the proprietary funds. Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date of donation. Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line method over the following estimated useful lives: Assets Years Furniture and equipment Collection and distribution system 5 - 10 40 Compensated Absences Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available fmancial resources is reported as an expenditures and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available fmancial resources are reported in the general long-term debt account group. At December 31, 1999 the amount recorded in general long-term debt was $43,785. No expenditure is reported for these amounts. Vested or accumulated vacation leave of proprietary fund types is recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. Long-term Obligations The City reports long-term debt of governmental funds at face value in the general long-term debt account group. Certain other governmental fund obligations not expected to be fmanced with current available fmancial resources are also reported in the general long-term debt account group. Long-term debt and other obligations fmanced by proprietary funds are reported as liabilities in the appropriate funds. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other fmancing source net of the applicable premium or discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. -12- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I I Fund Equity I 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. I Memorandum Only - Total Columns I Total columns on the general purpose fmancial statements are captioned as "memorandum only" because they do not represent consolidated fmancial information and are presented only to facilitate fmancial analysis. The columns do not present information that reflects fmancial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. I Comparative DatalReclassifications Comparative total data for the prior year have been presented in the selected sections of the accompanying fmancial statements in order to provide an understanding of changes in the City's fmancial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. I I Note 2: STEW ARDSIDP, COMPLIANCE AND ACCOUNTABILITY I A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general I 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 the City's council for review. The council holds public hearings and a fmal budget is prepared and adopted in early December. I The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of I appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the City Council. B. Excess of Expenditures over Appropriations For the year ended December 31, 1999, expenditures exceeded appropriations in the following departments within the General Fund: I Department Budget Actual Excess Administrative $ 104,535 $ 112,866 $ 8,331 Finance 107,857 114,872 7,015 Planning and Zoning 103,201 110,234 7,033 Municipal Building 92,150 100,023 7,873 General Government 113,248 126,243 12,995 Animal Control 18,000 18,570 570 General Maintainance 203,940 233,377 29,437 Traffic Control 38,500 39,094 594 I I I These overexpenditures were funded with revenue in excess of budget and available fund balance. I I -13- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,1999 Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED I C. Deficit Fund Equity The following fund had a deficit fund balance as of December 31, 1999. The deficit in these funds will be eliminated by future revenue sources. I Capital Projects Funds Senior Community Center $ 57.503 I Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS I 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 fmancial statements as "cash and temporary investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: I I Deposits In accordance with Minnesota Statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 11 0% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). I I I Authorized collateral includes the legal investments described below, as well as certain frrst 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 fmandal institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $937,725 and the bank balance was $1,025,744. It was covered entirely by federal depository insurance. Investments I Investments are categorized into these tIrree categories of credit risk: I 1. 2. Insured or registered, or securities held by the City or its agent in the City's name. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. I 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. I I I I -14- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED I I At year end, the City's investment balances were as follows: Category 2 3 Fair Value I I Total $ 3,519,628 $ 2.613.943 $ 6.133.571 $ $ $ 3,519,628 2.613.943 6,133,571 U.S. Government Securities Conunercial Paper Investments not subject to categorization: 4M Money Market Fund Primesweep 59,015 471.524 I I I $ Total investments $ 6.664.110 Cash on Hand Cash on hand Carrying amount of deposits Carrying amount of investments $ 1,900 937,725 6.664.110 $ 7.603.735 I I I I I Petty cash in the possession of the City totals $1,900. Cash and Investments Summary A reconciliation of cash and investments as shown on the Combined Balance Sheet for the City follows: B. Total cash and temporary investments Notes Receivable On May 28, 1996, the City entered into a service agreement with the City of Victoria to provide water. The total amount of the water availability fee was $232,500 and will be fmanced in five equal principal installments of $46,500 through July 1, 2000. Interest of 5.75% will be paid on the outstanding balance. The outstanding balance at December 31, 1999 was $46,500. I -15- I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,1999 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED C. Fixed Assets A summary of changes in general fIxed assets for the year ended December 31, 1999 is as follows: Balance Beginning Balance of Year Additions Deletions End of Year Land $ 456,826 $ $ $ 456,826 Buildings and structures 1,347,876 5,950 1,353,826 Improvements other than buildings 1,355,431 8,057 1,363,488 Furniture and equipment 1.312.669 29.215 46.012 1.295.872 Total $ 4.472.802 $ 43.222 $ 46.012 $ 4,470.012 The following is a summary of proprietary fund type fIxed assets at December 31, 1999: Enterprise Funds Water Sewer Liquor Total Furniture and equipment $ 24,178 $ 37,827 $ 102,488 $ 164,493 Collection and distribution system 6.569.798 7.801.294 14.371.092 Total 6,593,976 7,839,121 102,488 14,535,585 Less accumulated depreciation (1.203.361 ) (4.708.330 ) (61.008 ) (5.972.699) Net Fixed Assets $ 5.390.615 $ 3.130.791 $ 41.480 $ 8.562.886 D. Deferred Revenue Deferred revenue at December 31, 1999 is comprised of the following: Debt Capital General Service Proiect Total Delinquent taxes $ 21,911 $ $ $ 21,911 Special assessments Delinquent 1,706 191 1,897 Deferred 153 127.382 3.838 131.373 Total $ 23.770 $ 127.382 $ 4.029 $ 155.181 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: -16- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED General Long-term Debt General Obligation Improvement Bonds The following bonds were issued to fmance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. Some issues, however, are partly fmanced by ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax levy equals 105% of the amount required for debt service. The excess of 5% is to cover any delinquencies in tax or assessment payments. Authorized and Issued Interest Rate Issue Date Maturity Date G.O. Improvement Bonds of1991 $ 960,000 5.60-5.85% 11-01-91 2-01-02 G.O.lmprovement Bonds of 1993 325,000 3.85-4.45 12-01-93 2-01-04 Total General Obligation Improvement Bonds Tax Increment Revenue Bonds Balance at Year End $ 285,000 125.000 $ 410.000 I I I I I I I I 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 I by the full faith and credit of the City. Authorized and Issued Interest Rate Issue Date Maturity Date Tax Increment Bonds of1991 $ 920,000 9.00% 5-01-91 2-01-00 Other General Long-Term Debt Capital Lease Payable Balance at Year End $ 285.000 During 1996, the City entered into a lease, with option to purchase, agreement as lessee for fmancing the South Shore Senior Center project. Title remains with the City so long as they are not in default of terms in the lease agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. $ 311,000 6.22% 5-30-96 8-01-08 $ 255.795 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 -17- $ 43.785 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Note 3: CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED 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 4.40-5.50% 11-01-95 2-01-11 2-01-12 $1,540,000 750,000 $2.290.000 $ 1,920,000 860,000 4.35-5.40% 11-01-96 Total General Obligation Revenue Bonds Changes in General Long-term Liabilities. During the year ended December 31, 1999, the following changes occurred in liabilities reported in the general long-term debt account group. Balance Balance January 1, December 31, 1999 Additions Reductions 1999 G.O. Improvement Bonds $ 545,000 $ $ 135,000 $ 410,000 Tax Increment Revenue Bonds 440,000 155,000 285,000 Capital Lease payable 276,460 20,665 255,795 Sick leave/severance payable 37,633 6,152 43,785 Total $ 1.299.093 $ 6.152 $ 310.665 $ 994.580 The annual service requirements to maturity for all bonds and leases outstanding at December 31, 1999 are as follows: Enterprise General Long-term Debt Account Group Funds Tax G.O. Increment Capital G.O. Year Ending Improvement Revenue Lease Revenue December 31. Bonds Bonds Payable Bonds Total 2000 148,588 297,825 37,544 298,020 781,977 2001 136,776 37,544 284,739 459,059 2002 120,139 37,544 276,414 434,097 2003 21,430 37,544 267,904 326,878 2004 20,480 37,544 264,090 322,114 Thereafter 150.175 1.616,943 1.767.1 18 Total 447,413 297,825 337,895 3,008,110 4,091,243 Less interest (37.413 ) (12,825) (82,100) (718.1 10) (850.448) Principal $ 410.000 $ 285.000 $ 255.795 $ 2.290.000 $ 3.240.795 Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of long-term debt totaled $376,643 at year end. Amounts to be Provided for 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. -18- Purpose Amount Prepaid items $ 34,450 Debt service on bonds issued 187,846 Debt service on bonds issued 179,265 Debt service on bonds issued 9.532 $ 411.093 I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED Note 3: F. Fund Equity Reservations and Designations The components of fund equity are described in Note 1. Certain reservations and designations have been made in the following funds: Fund Balance - Reserved Governmental Funds General Fund Debt Service Funds 1993 Improvement and Refunding 1991 Improvement and Refunding Waterford III Tax Increment Total Reserved 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 G. Total Unreserved - Designated Contributed Capital Working capital $ 1,531,901 45,206 196,317 312,642 843,144 139,161 156.904 $ 3.225.275 I I Capital Improvements Park Improvements Equipment Streets Street Construction Trail Improvements I I The changes in the government's contributed capital accounts for its proprietary funds were as follows: Enterprise Sources Water Sewer Total Beginning balance, Contributed capital $ 4,884,058 $ 4,618,466 $ 9,502,524 Contributing sources: Developer contributions 38.798 38.798 Ending balance, Contributed capital $ 4.884.058 $ 4.657.264 $ 9.541.322 I I I I I -19- I I I I I Note 4: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City 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 defmed retirement benefIts are based on a member's highest average salary for any fIve successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefIts for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of the step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first ten years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the fIrst ten years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree -- no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefIts begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available fmancial report that includes fmandal 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 (651) 296-7460 or 1-800-652-9026. B. Funding Policy Minnesota Statutes Chapter 353 set 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 8.75 and 4.75 percent, respectively, of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll; 11.43 percent for Basic Plan PERF members, and 5.18 percent for Coordinated Plan PERF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 1999, 1998, and 1997 were $14,504, $13,720, and $10,001, respectively. The Cities contributions were equal to the contractually required contributions for each year as set by state statute. -20- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 I I I I I I Note 5: 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 1998 by the City of Shorewood is 45%. The most recent year of audited information is 1998. The [mancial statements can be obtained by writing to South Lake Minnetonka Public Safety Department, 810 Excelsior Blvd, Excelsior MN 55331. 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 31,1998. South Lake Minnetonka Public Safety Department has accounts payable, and accrued payroll and compensated absences in the General Fund of $154,265. There is no other current or long-term debt outstanding as of December 31, 1998. The following is a summary of the Department's balance sheet as of December 31, 1998 and the statement of revenue, expenditures and changes in fund balance for the General Fund for the year ended December 31, 1998. I SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1998 I I I I I General Totals General Fixed (Memorandum OnM Fund Assets 1998 1997 Total assets $ 318.492 $ 382.908 $ 701.400 $ 939.412 Liabilities $ 154,265 $ $ 154,265 $ 407,537 Fund equity 164.227 382.908 547.135 531.875 Total liabilities and fund equity $ 318.492 $ 382.908 $ 701.400 $ 939.412 1998 1997 Variance - Favorable Budget Actual (Unfavorable ) Actual Total revenue $ 1,229,344 $ 1,281,632 $ 52,288 $ 1,247,073 Total expenditures 1.239.501 1.298.313 (58.812) 1.218.390 Excess of revenue over (under) expenditures $ nO.157) (16,681 ) $ (6.524) 28,683 Fund balance, January 1 180.908 152.225 Fund balance, December 31 $ 164.227 $ 180.908 -21- I I I I I I I SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1998 (With comparative actual amounts for the year ended December 31, 1997) I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Note 5: JOINT VENTURES - CONTINUED I 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 leased the Senior Center to the Friends ofthe 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 were responsible for a proportionate share of the building construction. Shorewood fmanced their share with a lease purchase obligation. The amount of the lease purchase is $255,795 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. Financial statements are not issued for this organization. I Note 6: OTHER INFORMATION I I I A. Risk Management I I The City is exposed to various risks ofloss 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. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. 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. I I I B. Segment Information for Enterprise Funds Stormwater Management Water Sewer Recvcling Utility Liquor Total Operating revenue $ 454,227 $ 742,446 $ 89,563 $ 46,032 $ 482,251 $ 1,814,519 Depreciation expense 151,615 197,794 9,489 358,898 Operating income 101,287 121,326 5,247 6,992 8,836 243,688 Operating transfers from other funds tO,OOO 10,000 Operating transfers to other funds (2,400 ) (6,000) (8,400 ) Net income 95,748 177,349 6,213 22,229 23,752 325,291 Fixed asset additions 108,630 38,798 147,428 Net working capital 2,093,787 2,265,173 41,445 241,763 310,199 4,952,367 Contributed capital additions 38,798 38,798 Total assets 7,528,687 5,420,080 41,445 244,181 501,124 13,735,517 Bonds Payable 2,290,000 2,290,000 Total equity 5,211,680 5,395,964 41,445 241,763 351,679 11,242,531 I I I I I I -22- I Note 6: CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,1999 OTHER INFORMATION - CONTINUED C. 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 fmanced partially or entirely by special assessments, enterprise fund revenues or tax increments. The total market value of taxable property in the City is $595,451,300 which leaves a legal debt margin of$II,909,026. There is no debt subject to the limit. 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 31,1999 and 1998 amounted to $149,822 and $145,978, respectively. Future minimum lease payments for all leases are as follows: Year Ending Shorewood Waterford December 31. Plaza Center Tonka Bav 2000 $ 35,910 $ 49,500 $ 14,100 2001 39.900 49.500 15.000 Total $ 75.810 $ 99.000 $ 29.100 The new lease for Waterford Center began January 1, 1995 and will run through December 31, 2001. The Shorewood Village Plaza lease began January 1, 1997 and will run through December 31,2001. The Tonka Bay lease begins January 1, 1999 and runs through December 31,2001. Note 8: TAX INCREMENT REVENUE BONDS During 1991, the City issued $920,000 Tax Increment Revenue Bonds. The proceeds of the issue will be used to pay for public improvements stipulated in the development agreements. The 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. The bonds payable are reported as a liability in the General Long-term Debt Account Group in the fmancial 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. -23- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Note 9: OPERATING TRANSFERS A schedule of operating transfers follows: Transfer Transfer In Out General Fund $ 46,400 $ 492,800 Capital Projects Funds Public Facilities/Office Equipment 15,000 15,000 Park Capital Improvements Equipment Replacement 107,800 Street Reconstruction 360,000 45,650 Trail Capital Improvement 28,650 6,000 Enterprise Funds Stormwater Management Utility 10,000 Water Fund 2,400 Sewer Fund 6,000 Total $ 567.850 $ 567.850 -24- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA THE GENERAL FUND The General Fund is used to account for resources traditionally associated with govenmemt 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. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-I GENERAL FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1999 AND 1998 1999 1998 ASSETS Cash and temporary investments $ 1,640,583 $ 1,523,052 Accrued interest receivable 16,340 28,891 Delinquent taxes receivable 49,334 46,806 Accounts receivable 29,506 27,024 Due from other funds 24,194 Special assessments receivable Delinquent 1,706 3,617 Deferred 153 301 Prepaid items 34,450 10,833 TOTAL ASSETS $ 1,796,266 $ 1,640,524 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable $ 32,074 $ 61,784 Salaries payable 40,454 28,220 Refundable deposits payable 133,616 60,257 Deferred revenue 23,771 32,217 TOTAL LIABILITIES 229,915 182,478 FUND BALANCE Reserved for prepaid items 34,450 10,833 Unreserved Designated for working capital 1,531,901 1,447,213 TOTAL LIABILITIES AND FUND BALANCE $ 1,796,266 $ 1,640,524 -25- I 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 31,1999 I (With Comparative Amounts for the Year Ended December 31, 1998) 1999 1998 I Variance - Favorable Budget Actual (Unfavorable) Actual I REVENUE General property taxes General property taxes $1,790,351 $1,799,020 $ 8,669 $1,710,414 I Fiscal disparities 71,707 71,707 66,439 Total 1,862,058 1,870,727 8,669 1,776,853 I Licenses and permits Business 9,800 12,055 2,255 10,250 I Nonbusiness 155,100 209,500 54,400 212,998 Total 164,900 221,555 56,655 223,248 I Intergovernmental Federal I FEMA 75,000 CDBG 6,600 6,693 93 5,000 State I Property tax credits 421,282 421,282 421,334 Other 39,773 40,994 1,221 31,025 I Total 467,655 468,969 1,314 532,359 Charges for services I General government 39,500 34,589 (4,911) 26,780 Parks and recreation 12,600 8,759 (3,841) 7,516 Total 52,100 43,348 (8,752) 34,296 I Fines and forfeitures 80,000 94,115 14,115 73,337 I Miscellaneous revenue Interest on investments 95,000 52,890 (42,110) 87,794 Other 25,700 31,672 5,972 29,938 I Total 120,700 84,562 (36,138) 117,732 I TOTAL REVENUE 2,747,413 2,783,276 35,863 2,757,825 I I -26- CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED I BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1999 (With Comparative Amounts for the Year Ended December 31, 1998) I 1999 1998 Variance - I Favorable Budget Actual (Unfavorable) Actual EXPENDITURES I Current General Government Mayor and Council I Personal services $ 13,564 $ 13,564 $ $ 13,564 Supplies 1,200 1,906 (706) 1,300 Other services and charges 61,244 48,852 12,392 39,625 I Total 76,008 64,322 11,686 54,489 Administrative I Personal services 97,660 106,403 (8,743) 103,968 Supplies 575 375 200 250 I Other services and charges 6,300 6,088 212 5,913 Total 104,535 112,866 (8,331 ) 110,131 I Finance Personal services 96,057 103,196 (7,139) 97,243 I Supplies 3,900 2,812 1,088 4,410 Other services and charges 7,900 8,864 (964) 7,478 Total 107,857 114,872 (7,015) 109,131 I Professional services Personal services 84,327 73,861 10,466 72,310 I Supplies 2,050 778 1,272 1,365 Other services and charges 168,100 147,653 20,447 292,763 I Total 254,477 222,292 32,185 366,438 Planning and zoning I Personal services 90,951 100,468 (9,517) 93,264 Supplies 900 357 543 695 Other services and charges 11,350 9,409 1,941 14,652 I Total 103,201 110,234 (7,033) 108,611 I I -27- I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND I STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1999 I (With Comparative Amounts for the Year Ended December 31, 1998) 1999 1998 I Variance - Favorable Budget Actual (Unfavorable) Actual I EXPENDITURES - CONTINUED Current - Continued General Government - Continued I Municipal building Supplies $ 10,000 $ 10,071 $ (71) $ 9,805 Other services and charges 82,150 89,952 (7,802) 79,596 I Total 92,150 100,023 (7,873) 89,401 I Other general government Personal services 82,198 97,607 (15,409) 89,054 Supplies 17,000 12,600 4,400 15,819 I Other services and charges 14,050 16,036 (1,986) 14,611 Total 113,248 126,243 (12,995) 119,484 I Total General Government 851,476 850,852 624 957,685 I Public Safety Police protection Supplies 1,600 401 1,199 36 I Other services and charges 551,828 546,934 4,894 539,084 Total 553,428 547,335 6,093 539,120 I Animal control Other services and charges 18,000 18,570 (570) I Fire protection Other services and charges 166,355 166,355 156,623 I Protective inspection Personal services 72,287 64,543 7,744 64,599 Supplies 625 166 459 452 I Other services and charges 4,200 2,546 1,654 27,459 Total 77,112 67,255 9,857 92,510 I Total Public Safety 814,895 799,515 15,380 788,253 I I -28- CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1999 (With Comparative Amounts for the Year Ended December 31, 1998) 1999 1998 Budget EXPENDITURES - CONTINUED Current - Continued Public Works General maintenance Personal services Supplies Other services and charges $ 147,540 35,700 20,700 Total 203,940 Streets and highways Personal services Supplies Other services and charges 93,591 32,000 6,100 Total 131,691 Snow and ice removal Personal services Supplies 27,317 17,500 Total 44,817 Traffic control Supplies Other services and charges 4,500 34,000 Total 38,500 Sanitation and waste removal Personal services Other services and charges 616 4,000 Total 4,616 -29- Actual $ 182,624 33,454 17,299 233,377 64,843 32,796 6,867 104,506 17,030 13,009 30,039 5,227 33,867 39,094 456 456 Variance - Favorable (Unfavorable) Actual $ (35,084) 2,246 3,401 $ 174,984 34,642 16,168 (29,437) 225,794 28,748 56,672 (796) 34,022 (767) 3,750 27,185 94,444 10,287 10,608 4,491 11,848 14,778 22,456 (727) 4,653 133 34,636 (594) 39,289 160 27,507 4,000 82,613 4,160 110,120 I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND I STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1999 I (With Comparative Amounts for the Year Ended December 31, 1998) 1999 1998 I Variance - Favorable Budget Actual (Unfavorable) Actual I EXPENDITURES - CONTINUED Current - Continued Public Works - Continued I Tree maintenance Personal services $ 8,452 $ 5,200 $ 3,252 $ 6,837 Supplies 550 746 (196) 6,300 I Other services and charges 13,220 10,828 2,392 Total 22,222 16,774 5,448 13,137 I Total Public Works 445,786 424,246 21,540 505,240 I Culture and Recreation Personal services 95,276 74,905 20,371 68,253 Supplies 19,200 15,094 4,106 17,204 I Other services and charges 34,130 24,436 9,694 24,830 Total Culture and Recreation 148,606 114,435 34,171 110,287 I Total Current Expenditures 2,260,763 2,189,048 71,715 2,361,465 I Capital Outlay General government 1,856 775 1,081 3,655 Public works 1,250 1,204 46 I Total Capital Outlay 3,106 1,979 1,127 3,655 Debt Service I Principal 20,665 20,665 19,437 Interest and other 16,879 16,879 18,107 I Total Debt Service 37,544 37,544 37,544 TOTAL EXPENDITURES 2,301,413 2,228,571 72,842 2,402,664 I EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 446,000 554,705 108,705 355,161 I I I -30- CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1999 (W ith Comparative Amounts for the Year Ended December 31, 1998) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out 1999 1998 Variance - Favorable Budget Actual (Unfavorable) Actual $ 46,400 $ 46,400 $ $ 13,000 (492,800) (492,800) (489,025) (446,400) (446,400) (476,025) TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ 108,705 (120,864) (400) $ 108,305 FUND BALANCE, JANUARY 1 1,458,046 1,578,910 FUND BALANCE, DECEMBER 31 $1,566,351 $1,458,046 -31- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA 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 Imllrovement and Refundin~ Fund - This fund was established to account for the accumulation of resources for payment of interest and principal 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. 1991 Improvement and Refundin2: Fund - This fund was established to account for the accumulation of resources for the payment of interest and principal on bonds issued for the SE water treatment plant, Pine Bend improvements, Church Road improvements, and to refund the 1986 improvement bonds. CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1999 (With Comparative Totals for December 31, 1998) 1993 1991 Improvement Waterford Improvement and III Tax and Refunding Increment Refunding ASSETS Cash and temporary investments $ 186,216 $ $ 177,707 Accrued interest receivable 1,440 25 1,287 Accounts receivable 5,000 Delinquent taxes receivable 5,935 Special assessments Delinquent 190 271 Deferred 33,793 93,588 TOTAL ASSETS $ 221,639 $ 10,960 $ 272,853 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ $ $ Due to other funds 1,428 Deferred revenue 33,793 93,588 TOTAL LIABILITIES 33,793 1,428 93,588 FUND BALANCE Reserved for debt service 187,846 9,532 179,265 Unreserved - undesignated TOTAL FUND BALANCE (DEFICIT) 187,846 9,532 179,265 TOTAL LIABILITIES AND FUND BALANCE $ 221,639 $ 10,960 $ 272,853 -32- I I I I I I I I I I I I I I I I I I I I Exhibit B-1 I I I Total 1999 1998 I $ 363,923 $ 421,698 2,752 5,919 I 5,000 5,935 147 461 10,941 I 127,381 191,325 I $ 505,452 $ 630,030 I $ $ 2,786 1,428 I 127,381 202,266 128,809 205,052 I 376,643 426,621 I (1,643) 376,643 424,978 I $ 505,452 $ 630,030 I I I I I I -33- CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) YEAR ENDED DECEMBER 31, 1999 (With Comparative Totals for the Year Ended December 31, 1998) 1993 1991 Improvement Waterford Improvement and III Tax and Refunding Increment Refunding REVENUE Property taxes $ $ 334,124 $ Special assessments 28,450 64,957 Interest on investments 5,121 94 3,607 TOTAL REVENUE 33,571 334,218 68,564 EXPENDITURES Debt Service Principal 40,000 155,000 95,000 Interest and service charges 7,133 168,043 19,512 TOTAL EXPENDITURES 47,133 323,043 114,512 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES (13,562) 11,175 (45,948) FUND BALANCE (DEFICIT), JANUARY 1 201,408 (1,643) 225,213 FUND BALANCE, DECEMBER 31 $ 187,846 $ 9,532 $ 179,265 -34- I I I I I I I I I I I I I I I I I I I I Exhibit B-2 I I I Total 1999 1998 I $ 334,124 $ 334,290 93,407 104,108 8,822 19,032 I 436,353 457,430 I 290,000 315,000 I 194,688 195,644 484,688 510,644 I I (48,335) (53,214) 424,978 478,192 I $ 376,643 $ 424,978 I I I I I I I I -35- I I I I I I I I I I I I I I I I I I I 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 Eauipment Fund - This fundwas established to account for capital improvement projects for public facilities and replacement of office equipment that 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. Eauipment 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 ofMSA 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. Senior Community Center Fund - This fund was established to account for the construction of a Senior Community Center. CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBnITNGBALANCESHEET DECEMBER 31, 1999 (With Comparative Totals for December 31, 1998) Public Facilities! Park Office Capital Equipment Equipment Improvement Replacement ASSETS Cash and temporary investments $ 44,733 $ 199,847 $ 310,639 Accrued interest receivable 473 1,600 2,003 Special assessments receivable Delinquent 191 Deferred 3,838 TOT AL ASSETS $ 49,235 $ 201,447 $ 312,642 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable $ $ 5,130 $ Due to other funds Deferred revenue 4,029 TOTAL LIABILITIES 4,029 5,130 FUND BALANCE (DEFICIT) Unreserved Designated 45,206 196,317 312,642 Undesignated TOT AL FUND BALANCE (DEFICIT) 45,206 196,317 312,642 TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) $ 49,235 $ 201,447 $ 312,642 I I I I I I I I I I I I I I I I I I I -36- I Exhibit C-l I I Trail Strawberry Senior I Street MSA Capital Lane Community Totals Reconstruction Construction Improvements Reconstruction Center 1999 1998 I $ 875,979 $ 158,252 $ 155,850 $ $ $1,745,300 $1,833,825 7,966 1,915 1,302 15,259 29,745 I 191 191 3,838 5,117 I $ 883,945 $ 160,167 $ 157,152 $ $ $1,764,588 $1,868,878 I $ 40,801 $ 21,006 $ 248 $ $ 34,737 $ 101,922 $ 74,518 22,766 22,766 I 4,029 5,308 40,801 21,006 248 57,503 128,717 79,826 I I 843,144 139,161 156,904 1,693,374 1,811,825 (57,503) (57,503) (22,773) I 843,144 139,161 156,904 (57,503) 1,635,871 1,789,052 I $ 883,945 $ 160,167 $ 157,152 $ $ $1,764,588 $1,868,878 I I I I I I -37- CITY OF SHOREWOOD, MINNESOTA I CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) YEAR ENDED DECEMBER 31, 1999 I (With Comparative Totals for the Year Ended December 31, 1998) Public I Facilities/ Park Office Capital Equipment Equipment Improvement Replacement I REVENUE Intergovernmental $ $ $ Special assessments 1,731 I Interest on investments 911 5,493 7,447 Miscellaneous Park dedication fees 33,000 I Contributions and donations Other 325 12,500 582 TOTAL REVENUE 2,967 50,993 8,029 I EXPENDITURES I Capital outlay Other services and charges 48 15,504 268 Professional services 19,496 I Construction costs 4,707 69 Machinery and equipment 26,334 70 TOTAL EXPENDITURES 26,382 39,707 407 I EXCESS (DEFICIENCY) OF REVENUE I OVER EXPENDITURES (23,415) 11,286 7,622 OTHER FINANCING SOURCES (USES) I Operating transfers in 15,000 107,800 Operating transfers out (15,000) TOTAL OTHER FINANCING I SOURCES (USES) 107,800 EXCESS (DEFICIENCY) OF REVENUE AND OTHER I FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (23,415) 11,286 115,422 FUND BALANCE (DEFICIT), JANUARY 1 68,621 185,031 197,220 I FUND EQUITY TRANSFER IN FUND EQUITY TRANSFER OUT I $ $ FUND BALANCE (DEFICIT), DECEMBER 31 $ 45,206 196,317 312,642 I -38- I I Exhibit C-2 I I I Trail Strawberry Senior Street MSA Capital Lane Community Total I Reconstruction Construction Improvements Reconstruction Center 1999 1998 $ $ 40,277 $ $ 451 $ $ 40,728 $ 39,465 I 1,731 1,842 24,073 6,335 4,556 (27) 48,788 96,630 I 33,000 21,000 10,000 13,407 I 24,073 46,612 4,556 451 (27) 137,654 168,937 I 5,797 22,650 4,826 16 4 49,113 18,204 I 145,663 139,757 16,681 1,918 34,674 358,189 109,206 284,024 13,104 25 301,929 411,321 26,404 70,305 I 435,484 162,407 21,507 15,038 34,703 735,635 609,036 I (411,411) (115,795) (16,951) (14,587) (34,730) (597,981) (440,099) I 360,000 28,650 511,450 758,275 (45,650) (6,000) (66,650) (292,250) I 314,350 22,650 444,800 466,025 I (97,061) (115,795) 5,699 (14,587) (34,730) (153,181) 25,926 I 928,572 254,956 151,205 26,220 (22,773) 1,789,052 1,763,126 11,633 11,633 23,204 I (11,633) (11,633) (23,204) $ 843,144 $ 139,161 $ 156,904 $ $ (57,503) $ 1,635,871 $ 1,789,052 I I -39- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business, where the costs of providing services to the general public are financed primarily through user charges. Water Fund - This fund is used to account for the activities of the City water system and to service debt incurred in te building of infrastructure for the system. Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system. Recvcline Fund - This fund is used to account for the activities of the City recycling program. Stormwater Management Utlity 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 1998. 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 BALANCE SHEET I DECEMBER 31, 1999 (With Comparative Totals for December 31,1998) I Water Sewer Recycling ASSETS I CURRENT ASSETS Cash and temporary investments $1,358,372 $ 2,050,624 $ 26,317 Accrued interest receivable 9,412 15,946 244 I Delinquent taxes receivable 41 Accounts receivable 46,839 187,268 13,295 Special assessments receivable I Delinquent 19,586 13,528 429 Deferred 636,434 19,744 1,160 Current portion of note receivable 46,500 Inventories, at cost I Prepaid items 3,610 2,179 TOTAL CURRENT ASSETS 2,120,794 2,289,289 41,445 I FIXED ASSETS, AT COST 6,593,976 7,839,121 LESS ACCUMULATED DEPRECIATION (1,203,361) (4,708,330) NET FIXED ASSETS 5,390,615 3,130,791 I OTHER ASSETS Bond discount, net of amortization 17,278 I Notes receivable, less current portion above TOTAL OTHER ASSETS 17,278 TOTAL ASSETS $7,528,687 $ 5,420,080 $ 41,445 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES I Accounts and contracts payable $ 26,824 $ 24,029 $ Salaries and compensated absences payable 183 87 Current portion of long-term debt 190,000 I TOTAL CURRENT LIABILITIES 217,007 24,116 LONG-TERM LIABILITIES I Bonds payable less current portion above 2,100,000 TOTAL LIABILITIES 2,317,007 24,116 I FUND EQUITY Contributed capital 4,884,058 4,657,264 Retained earnings I Unreserved 327,622 738,700 41,445 TOTAL FUND EQUITY 5,211,680 5,395,964 41,445 TOTAL LIABILITIES AND FUND EQUITY $7,528,687 $ 5,420,080 $ 41,445 I I -40- I CITY OF SHOREWOOD, MINNESOTA I ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS I YEAR ENDED DECEMBER 31,1999 (With Comparative Totals for the Year Ended December 31, 1998) I Water Sewer Recycling OPERATING REVENUE I Sales $ $ $ Less cost of sales GROSS PROFIT I Charges for services 238,127 720,446 89,563 Permits and connection fees 216,100 22,000 I GROSS PROFIT AND REVENUE 454,227 742,446 89,563 OPERATING EXPENSES I Personal services 25,206 14,074 543 Supplies 11,608 3,411 143 Repairs and maintenance 20,664 15,012 I Depreciation 151,615 197,794 Professional services 19,986 12,064 Contracted services 54,299 31,566 83,607 I Communication 571 139 Insurance 3,637 1,689 Water purchases 14,418 Utilities 48,510 5,402 I MCES disposal charges 334,373 Rent Advertising I Other 2,426 5,596 23 TOTAL OPERATING EXPENSES 352,940 621,120 84,316 OPERATING INCOME 101,287 121,326 5,247 I NON OPERA TING REVENUE (EXPENSES) I Special assessments 36,602 Interest on investments 37,526 56,991 966 Other income (expense) 40,375 5,032 Interest expense (117,642) I TOTAL NONOPERATING REVENUE (EXPENSES) (3,139) 62,023 966 INCOME (LOSS) BEFORE TRANSFERS 98,148 183,349 6,213 I OPERATING TRANSFERS FROM OTHER FUNDS OPERATING TRANSFERS TO OTHER FUNDS (2,400) (6,000) I NET INCOME (LOSS) 95,748 177 ,349 6,213 RETAINED EARNINGS, JANUARY 1 231,874 561,351 35,232 I RETAINED EARNINGS, DECEMBER 31 $ 327,622 $ 738,700 $ 41,445 I -42- I I Exhibit D-2 I I Stormwater Management Totals Utility Liquor 1999 1998 I $ $ 2,320,165 $2,320,165 $ 2,075,485 (1,837,914) (1,837,914) (1,649,619) I 482,251 482,251 425,866 46,032 1,094,168 1,088,713 I 238,100 111,700 46,032 482,251 1,814,519 1,626,279 I 1,519 211,786 253,128 239,572 1,034 8,086 24,282 24,171 I 35,676 17,698 9,489 358,898 331,547 8,997 4,129 45,176 23,065 I 27,490 2,270 199,232 274,362 710 1,276 15,193 20,519 21,960 14,418 11,398 I 22,479 76,391 85,264 334,373 374,509 149,822 149,822 145,978 I 7,983 7,983 5,338 42,178 50,223 33,855 39,040 473,415 1,570,831 1,589,993 I 6,992 8,836 243,688 36,286 I 36,602 74,607 5,237 7,773 108,493 155,798 7,143 52,550 41,407 I (117,642) (125,085) 5,237 14,916 80,003 146,727 I 12,229 23,752 323,691 183,013 10,000 10,000 10,000 I (8,400) 22,229 23,752 325,291 193,013 219,534 327,927 1,375,918 1,182,905 I $ 241,763 $ 351,679 $1,701,209 $ 1,375,918 I I -43- CITY OF SHOREWOOD, MINNESOTA I ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS I YEAR ENDED DECEMBER 31, 1999 (With Comparative Totals for the Year Ended December 31, 1998) I Water Sewer Recycling CASH FLOWS FROM OPERATING ACTIVITIES I Operating income $ 101,287 $ 121,326 $ 5,247 Adjustments to reconcile operating income to net cash provided by operating activities: I Other income related to operations 40,375 5,032 Depreciation and amortization 153,019 197,794 (Increase) decrease in assets: I Accounts receivable (3,340) (1,615) 2,176 Special assessments receivable 8,835 338 Inventory Prepaid items (695) (926) I Increase (decrease) in liabilities: Accounts payable 1,138 19,631 Salaries and compensated absences payable 37 (599) I NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 291,821 349,478 7,761 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES I Operating transfers from other funds Operating transfers to other funds (2,400) (6,000) NET CASH PROVIDED (USED) BY NONCAPITAL I FINANCING ACTIVITIES (2,400) (6,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES I Principal payments on note receivable 46,500 Principal paid on revenue bonds (180,000) Interest paid on revenue bonds (117,642) I Acquisition of fixed assets (108,630) Property taxes collected 737 Special assessments collected 225,882 I NET CASH USED BY CAP IT AL AND RELATED FINANCING ACTIVITIES (133,153) CASH FLOWS FROM INVESTING ACTIVITIES I Interest on investments 44,251 64,813 1,053 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 200,519 408,291 8,814 I CASH AND CASH EQUIVALENTS, JANUARY I 1,157,853 1,642,333 17,503 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,358,372 $ 2,050,624 $ 26,317 I NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired from developers $ $ 38,798 $ I I -44- I CITY OF SHOREWOOD, MINNESOTA Exhibit D-4 I WATER FUND I COMPARATIVE BALANCE SHEETS DECEMBER 31, 1999 AND 1998 1999 1998 I ASSETS CURRENT ASSETS I Cash and temporary investments $1,358,372 $1,157,853 Accrued interest receivable 9,412 16,137 Delinquent taxes receivable 41 778 Accounts receivable 46,839 43,499 I Special assessments receivable Delinquent 19,586 27,272 I Deferred 636,434 818,028 Current portion of note receivable 46,500 46,500 Prepaid items 3,610 2,915 TOTAL CURRENT ASSETS 2,120,794 2,112,982 I FIXED ASSETS, AT COST 6,593,976 6,485,346 I LESS ACCUMULATED DEPRECIATION (1,203,361) (1,051,746) NET FIXED ASSETS 5,390,615 5,433,600 I OTHER ASSETS Bond discount, net of amortization 17,278 18,682 I Note receivable, less current portion above 46,500 TOTAL OTHER ASSETS 17,278 65,182 I TOTAL ASSETS $ 7,528,687 $ 7,611,764 LIABILITIES AND FUND EQUITY I CURRENT LIABILITIES Accounts and contracts payable $ 26,824 $ 25,686 I Salaries and compesated absences payable 183 146 Current portion oflong-term debt 190,000 180,000 TOTAL CURRENT LIABILITIES 217,007 205,832 I LONG -TERM LIABILITIES I Bonds payable less current portion above 2,100,000 2,290,000 TOTAL LIABILITIES 2,317,007 2,495,832 I FUND EQUITY Contributed capital 4,884,058 4,884,058 I Retained earnings Unreserved 327,622 231,874 TOTAL FUND EQUITY 5,211,680 5,115,932 I TOTAL LIABILITIES AND FUND EQUITY -46- $ 7,528,687 $ 7,611,764 I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-5 WATER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 25,206 14,748 11,608 12,903 20,664 13,146 151,615 125,396 19,986 4,460 54,299 52,864 571 1,114 3,637 4,944 14,418 11,398 48,510 47,279 2,426 17,058 352,940 305,310 101,287 6,615 OPERATING REVENUE Charges for services Permits and connection fees $ 238,127 216,100 TOTAL OPERATING REVENUE 454,227 OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Water purchases Utilities Other TOTAL OPERATING EXPENSES OPERATING INCOME NONOPERATING REVENUE (EXPENSES) Special assessments Interest on investments Other income Interest expense 36,602 37,526 40,375 (117,642) TOTAL NONOPERATING REVENUE (EXPENSES) (3,139) NET INCOME BEFORE TRANSFERS 98,148 OPERATING TRANSFER OUT (2,400) NET INCOME 95,748 RET AINED EARNINGS, JANUARY 1 231,874 RETAINED EARNINGS, DECEMBER 31 $ 327,622 -47- $ 255,925 56,000 311,925 74,607 51,835 25,842 (125,085) 27,199 33,814 33,814 198,060 $ 231,874 CITY OF SHOREWOOD, MINNESOTA Exhibit D-6 I WATER FUND I COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 I CASH FLOWS FROM OPERATING ACTIVITIES Operating income $ 101,287 $ 6,615 I Adjustments to reconcile operating income to net cash provided by operating activities: Other income related to operations 40,375 25,849 I Depreciation and amortization 153,019 126,799 (Increase) decrease in assets: Accounts receivable (3,340) 650 Prepaid items (695) 1,446 I Increase (decrease) in liabilities: Accounts and contracts payable 1,138 (10,116) Salaries and compensated absences payable 37 (108) I NET CASH PROVIDED BY OPERATING ACTIVITIES 291,821 151,135 CASH USED BY NONCAPIT AL FINANCING ACTIVITIES I Operating transfers to other funds (2,400) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES I Principal payments on note receivable 46,500 46,500 Bond principal paid (180,000) (185,000) I Interest paid on revenue bonds (117,642) (125,085) Acquisition offixed assets (108,630) (49,142) Property taxes collected 737 (672) I Special assessments collected 225,882 195,401 NET CASH USED BY CAPITAL AND RELATED FINANCING I ACTIVITIES (133,153) (117,998) CASH FLOWS FROM INVESTING ACTIVITIES I Interest on investments 44,251 50,074 INCREASE IN CASH AND CASH EQUIVALENTS 200,519 83,211 I CASH AND CASH EQUIVALENTS, JANUARY 1 1,157,853 1,074,642 CASH AND CASH EQUIVALENTS, DECEMBER 31 $1,358,372 $ 1,157,853 I NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES I Fixed assets acquired from developers $ $ 173,134 I I -48- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1999 AND 1998 ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Special assessments receivable Delinquent Deferred Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION NET FIXED ASSETS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable TOTAL CURRENT LIABILITIES FUND EQUITY Contributed capital Retained earnings Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY -49- Exhibit D-7 1999 1998 $ 2,050,624 $ 1,642,333 15,946 23,768 187,268 185,653 13,528 20,336 19,744 21,771 2,179 1,253 2,289,289 1,895,114 7,839,121 7,800,323 (4,708,330) (4,510,536) 3,130,791 3,289,787 $ 5,420,080 $ 5,184,901 $ 24,029 87 $ 4,398 686 24,116 5,084 4,657,264 4,618,466 738,700 561,351 5,395,964 5,179,817 $ 5,420,080 $ 5,184,901 1999 1998 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-8 SEWER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1999 AND 1998 OPERATING REVENUE Charges for services Permits and connection fees $ 720,446 22,000 TOTAL OPERATING REVENUE 742,446 OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Utilities MCES charges Other 14,074 3,411 15,012 197,794 12,064 31,566 139 1,689 5,402 334,373 5,596 TOTAL OPERATING EXPENSES 621,120 OPERATING INCOME 121,326 NONOPERATING REVENUE Interest on investments Other income 56,991 5,032 TOTAL NONOPERATING REVENUE 62,023 NET INCOME BEFORE TRANSFERS 183,349 OPERATING TRANSFER OUT (6,000) NET INCOME 177,349 RETAINED EARNINGS, JANUARY 1 561,351 RETAINED EARNINGS, DECEMBER 31 $ 738,700 -50- $ 695,940 55,700 751,640 23,747 1,412 4,552 195,393 6,661 51,155 162 2,074 15,396 374,509 1,114 676,175 75,465 79,823 18,956 98,779 174,244 174,244 387,107 $ 561,351 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMP ARATNE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1999 AND 1998 CASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Other income related to operations Depreciation (Increase) decrease in assets: Accounts receivable Special assessments receivable Prepaid items Increase (decrease) in liabilities: Accounts and contracts payable Salaries and compensated absences payable NET CASH PROVIDED BY OPERATING ACTIVITIES CASH USED BY NONCAPITAL FINANCING ACTNITIES Operating transfers to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTNITIES Acquisition of fIxed assets CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUN ALENTS CASH AND CASH EQUIVALENTS, JANUARY I CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired from developers -51- Exhibit D-9 1999 1998 $ 121,326 $ 75,465 5,032 18,956 197,794 195,393 (1,615) (955) 8,835 (1,084) (926) 570 19,631 (5,324) (599) 553 349,478 283,574 (6,000) (12,196) 64,813 73,143 408,291 344,521 1,642,333 1,297,812 $2,050,624 $1,642,333 $ 38,798 $ 158,444 ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS RETAINED EARNINGS Unreserved TOTAL RETAINED EARNINGS CITY OF SHOREWOOD, MINNESOTA RECYCLING FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1999 AND 1998 -52- Exhibit D-IO I I I I I I 'I I I I I I I I I I I I I 1999 1998 $ 26,317 $ 17,503 244 331 13,295 15,471 429 650 1,160 1,277 $ 41,445 $ 35,232 41,445 35,232 $ 41,445 $ 35,232 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-ll RECYCLING FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 OPERATING REVENUE Charges for services $ 89,563 $ 91,257 OPERATING EXPENSES Personal services 543 1,423 Supplies 143 232 Contracted service 83,607 78,693 Other 23 TOTAL OPERATING EXPENSES 84,316 80,348 OPERATING LOSS 5,247 10,909 NONOPERATING REVENUE Interest on investments 966 1,166 NET INCOME 6,213 12,075 RETAINED EARNINGS, JANUARY 1 35,232 23,157 RETAINED EARNINGS, DECEMBER 31 $ 41,445 $ 35,232 -53- CITY OF SHOREWOOD, MINNESOTA Exhibit D-12 RECYCLING FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31,1999 AND 1998 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Operating income $ 5,247 $ 10,909 Adjustments to reconcile operating loss to net cash provided by operating activities: (Increase) decrease in assets: Accounts receivable 2,176 (6,788) Special assessments receivable 338 (29) Increase (decrease) in liabilities: Accounts payable (1,924) NET CASH PROVIDED BY OPERATING ACTIVITIES 7,761 2,168 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 1,053 1,077 INCREASE IN CASH AND CASH EQUIVALENTS 8,814 3,245 CASH AND CASH EQUIVALENTS, JANUARY 1 17,503 14,258 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 26,317 $ 17,503 -54- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-13 STORMW ATER MANAGEMENT UTILITY FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1999 AND 1998 1999 1998 ASSETS CURRENT ASSETS Cash and investments $ 228,296 $ 199,404 Accrued interest receivable 1,887 3,779 Accounts receivable 12,425 21,042 Special assessments receivable Delinquent 504 1,184 Deferred 1,069 1,069 TOTAL ASSETS $ 244,181 $ 226,478 LIABILITIES AND RETAINED EARNINGS LIABILITIES Accounts payable $ 2,418 $ 6,889 Salaries payable 55 TOT AL CURRENT LIABILITIES 2,418 6,944 RETAINED EARNINGS Unreserved 241,763 219,534 TOTAL LIABILITIES AND RETAINED EARNINGS $ 244,181 $ 226,478 -55- CITY OF SHOREWOOD, MINNESOTA Exhibit D-14 STORMW ATER MANAGEMENT UTILITY FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 OPERATING REVENUE Charges for services $ 46,032 $ 45,591 OPERATING EXPENSES Personal services Supplies Professional services Contracted services 1,519 1,898 1,034 119 8,997 9,424 27,490 88,685 39,040 100,126 6,992 (54,535) 5,237 12,668 12,229 (41,867) 10,000 10,000 22,229 (31,867) 219,534 251,401 $ 241,763 $ 219,534 TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUE Interest on investments INCOME (LOSS) BEFORE OPERATING TRANSFERS OPERATING TRANSFER FROM OTHER FUNDS NET INCOME (LOSS) RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 -56- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA STORMW ATER MANAGEMENT UTILITY FUND COMP ARATNE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31,1999 AND 1998 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: (Increase) decrease in assets: Accounts receivable Special assessments receivable Increase (decrease) in liabilities: Accounts payable Salaries payable NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUN ALENTS, JANUARY 1 CASH AND CASH EQUN ALENTS, DECEMBER 31 -57- Exhibit D-15 1999 1998 $ 6,992 $ (54,535) 8,617 (8,946) 680 119 (4,471) 6,889 (55) 19 11,763 (56,454) 10,000 10,000 7,129 11,955 28,892 (34,499) 199,404 233,903 $ 228,296 $ 199,404 CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1999 AND 1998 ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Inventories, at cost Prepaid items TOTAL CURRENT ASSETS FIXED ASSET, AT COST LESS ACCUMULATED DEPRECIATION NET FIXED ASSETS TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable TOTAL CURRENT LIABILITIES RETAINED EARNINGS Unreserved TOTAL LIABILITIES AND RETAINED EARNINGS -58- Exhibit D-16 I I 1999 1998 I $ 190,320 $ 44,591 I 2,123 2,809 257,966 336,060 I 9,235 13,366 459,644 396,826 I 102,488 102,488 (61,008) (51,519) I 41,480 50,969 $ 501,124 $ 447,795 I $ 136,748 $ 110,387 I 12,697 9,481 149,445 119,868 I 351,679 327,927 I $ 501,124 $ 447,795 I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-17 LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31,1999 AND 1998 OPERATING REVENUE Sales Less cost of sales 1999 1998 $ 2,320,165 $ 2,075,485 (1,837,914) (1,649,619) 482,251 425,866 211,786 197,756 8,086 9,505 9,489 10,758 4,129 2,520 2,270 2,965 15,193 14,942 22,479 22,589 149,822 145,978 7,983 5,338 42,178 15,683 473,415 428,034 8,836 (2,168) 7,773 10,306 7,143 (3,391) 14,916 6,915 23,752 4,747 327,927 323,180 $ 351,679 $ 327,927 TOTAL OPERATING REVENUE OPERATING EXPENSES Personal services Supplies Depreciation Professional services Contracted services Insurance Utilities Rent Advertising Other TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUE (EXPENSES) Interest on investments Other income ( expense) TOTAL NONOPERATING REVENUE (EXPENSES) NET INCOME RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 -59- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-18 LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31,1999 AND 1998 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ 8,836 $ (2,168) Adjustments to reconcile operating income (loss) to net cash used by operating activities: Other income (expense) related to operations 7,143 (3,391) Depreciation 9,489 10,758 (Increase) decrease in assets: Accounts receivable 184 Inventory 78,094 (13,121) Prepaid items 4,131 (1,772) Increase (decrease) in liabilities: Accounts and contracts payable 26,361 (12,418) Salaries and compensated absences payable 3,216 1,060 NET CASH USED BY OPERATING ACTIVITIES 137,270 (20,868) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 8,459 9,972 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 145,729 (10,896) CASH AND CASH EQUIVALENTS, JANUARY 1 44,591 55,487 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 190,320 $ 44,591 -60- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING BALANCE SHEETS DECEMBER 31, 1999 AND 1998 Tonka Bay Waterford Center 1999 1998 1999 1998 ASSETS CURRENT ASSETS Cash and temporary investments (deficit) $110,693 $ 79,046 $ (149,719) $ (166,804) Accrued interest receivable 836 1,005 Inventories, at cost 62,858 75,041 91,180 105,720 Prepaid items 3,284 3,475 2,648 5,093 TOTAL CURRENT ASSETS 177,671 158,567 (55,891) (55,991) FIXED ASSETS, AT COST 3,750 3,750 76,403 76,403 LESS ACCUMULATED DEPRECIATION (711) (461) (38,411) (30,537) NET FIXED ASSETS 3,039 3,289 37,992 45,866 TOTAL ASSETS $180,710 $161,856 $ (17,899) $ (10,125) LIABILITIES AND RETAINED EARNINGS (DEFICIT) CURRENT LIABILITIES Accounts and contracts payable $ 39,179 $ 30,876 $ 36,114 $ 31,007 Salaries and compensated absences payable 3,836 2,343 5,271 4,097 TOTAL LIABILITIES 43,015 33,219 41,385 35,104 RETAINED EARNINGS (DEFICIT) Unreserved 137,695 128,637 (59,284) (45,229) TOTAL LIABILITIES AND RETAINED EARNINGS (DEFICIT) $180,710 $161,856 $ (17,899) $ (10,125) -61- I I I I I I I I I I I I I I I I I I I I Exhibit D-19 I I Shorewood Plaza Totals 1999 1998 1999 1998 I $229,346 $ 132,349 $ 190,320 $ 44,591 1,287 1,804 2,123 2,809 I 103,928 155,299 257,966 336,060 3,303 4,798 9,235 13,366 I 337,864 294,250 459,644 396,826 22,335 22,335 102,488 102,488 I (21,886) (20,521) (61,008) (51,519) 449 1,814 41,480 50,969 I $338,313 $ 296,064 $ 501,124 $ 447,795 I $ 61,455 $ 48,504 $ 136,748 $ 110,387 I 3,590 3,041 12,697 9,481 65,045 51,545 149,445 119,868 I 273,268 244,519 351,679 327,927 I $ 338,313 $ 296,064 $ 501,124 $ 447,795 I I I I I I I -62- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT) YEARS ENDED DECEMBER 31, 1999 AND 1998 Tonka Bay Waterford Center 1999 1998 1999 1998 OPERATING REVENUE Sales $638,083 $568,893 $703,264 $643,676 Less cost of goods sold (515,601) (456,286) (530,085) (500,748) GROSS PROFIT 122,482 112,607 173,179 142,928 OPERATING EXPENSES Personal services 72,849 60,071 63,699 63,159 Supplies 1,568 1,839 1,762 2,936 Depreciation 250 250 7,874 7,874 Professional services 1,439 1,082 1,665 719 Contracted services 1,118 1,044 396 358 Insurance 4,837 4,231 4,602 4,893 Utilities 6,322 6,631 7,880 7,648 Rent 19,830 15,841 84,205 88,803 Advertising 1,132 668 3,216 2,180 Other 8,802 3,994 12,843 5,148 TOTAL OPERATING EXPENSES 118,147 95,651 188,142 183,718 OPERATING INCOl\1E (LOSS) 4,335 16,956 (14,963) (40,790) NONOPERATING REVENUE (EXPENSES) Interest on investments 3,217 3,540 Other income (expense) 1,506 (391) 908 (1,083) TOTAL NONOPERATING REVENUE (EXPENSES) 4,723 3,149 908 (1,083) NET INCOl\1E (LOSS) 9,058 20,105 (14,055) (41,873) RET AINED EARNINGS (DEFICIT), JANUARY 1 128,637 108,532 (45,229) (3,356) RETAINED EARNINGS (DEFICIT), DECEMBER 31 $137,695 $128,637 $ (59,284) $ (45,229) -63- I I I I I I I I I I I I I I I I I I I I Exhibit D-20 I I Shorewood Plaza Totals 1999 1998 1999 1998 I $ 978,818 $ 862,916 $ 2,320,165 $2,075,485 (792,228) (692,585) (1,837,914) (1,649,619) I 186,590 170,331 482,251 425,866 I 75,238 74,526 211,786 197,756 4,756 4,730 8,086 9,505 1,365 2,634 9,489 10,758 I 1,025 719 4,129 2,520 756 1,563 2,270 2,965 5,754 5,818 15,193 14,942 I 8,277 8,310 22,479 22,589 45,787 41,334 149,822 145,978 3,635 2,490 7,983 5,338 I 20,533 6,541 42,178 15,683 167,126 148,665 473,415 428,034 I 19,464 21,666 8,836 (2,168) I 4,556 6,766 7,773 10,306 4,729 (1,917) 7,143 (3,391) I 9,285 4,849 14,916 6,915 I 28,749 26,515 23,752 4,747 I 244,519 218,004 327,927 323,180 $ 273,268 $ 244,519 $ 351,679 $ 327,927 I I I I I -64- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING SCHEDULES OF CASH FLOWS YEARS ENDED DECEMBER 31, 1999 AND 1998 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 Inventory Prepaid items Increase (decrease) in liabilities: Accounts and contracts payable Salaries and compensated absences payable NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS (DEFICIT), JANUARY I CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31 -65- I I Tonka Bay I 1999 1998 $ 4,335 $ 16,956 I 1,506 (391) I 250 250 57 I 12, 183 (1,045) 191 (685) I 8,303 1,146 1,493 408 I 28,261 16,696 I 3,386 3,497 31,647 20,193 I 79,046 58,853 I $ 110,693 $ 79,046 I I I I I I I I I Exhibit D-21 I I Waterford Center Shorewood Plaza Totals 1999 1998 1999 1998 1999 1998 I $ (14,963) $ (40,790) $ 19,464 $ 21,666 $ 8,836 $ (2,168) I 908 (1,083) 4,729 (1,917) 7,143 (3,391) 7,874 7,874 1,365 2,634 9,489 10,758 I 51 76 184 14,540 7,177 51,371 (19,253) 78,094 (13,121) 2,445 (816) 1,495 (271) 4,131 (1,772) I 5,107 1,001 12,951 (14,565) 26,361 (12,418) 1,174 488 549 164 3,216 1,060 I 17,085 (26,098) 91,924 (11,466) 137,270 (20,868) I 5,073 6,475 8,459 9,972 I 17,085 (26,098) 96,997 (4,991) 145,729 (10,896) I (166,804) (140,706) 132,349 137,340 44,591 55,487 $ (149,719) $ (166,804) $ 229,346 $ 132,349 $ 190,320 $ 44,591 I I I I I I I I -66- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those fixed assets of a governmental jurisdiction which are not accounted for in an enterprise fund. To be classified as a fixed asset in this category, a specific piece of property must meet three attributes: 1. Tangible nature 2. A life longer than the current fiscal year 3. A significant value CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE DECEMBER 31, 1999 AND 1998 1999 GENERAL FIXED ASSETS Land Buildings and structures Improvements other than buildings Furniture and equipment $ 456,826 1,353,826 1,363,488 1,295,872 TOTAL GENERAL FIXED ASSETS $ 4,470,012 INVESTMENT IN GENERAL FIXED ASSETS General fund Capital projects funds $ 1,201,453 3,268,559 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 4,470,012 -67- Exhibit E-l I I I I I I I I I I I I I I I I I I I 1998 $ 456,826 1,347,876 1,355,431 1,312,669 $ 4,472,802 $ 1,204,243 3,268,559 $ 4,472,802 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTNITY DECEMBER 31,1999 Exhibit E-2 Buildings Improvements Furniture and other than and Total Land Structures Buildings Equipment FUNCTION General government $ 708,067 $ $ 305,372 $ 161,504 $ 241,191 Public works 2,312,464 153,500 919,581 184,702 1,054,681 Culture and recreation 1,449,481 303,326 128,873 1,017,282 TOTAL GENERAL FIXED ASSETS $4,470,012 $ 456,826 $ 1,353,826 $ 1,363,488 $ 1,295,872 -68- CITY OF SHOREWOOD, MINNESOTA Exhibit E-3 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION YEAR ENDED DECEMBER 31, 1999 General General Fixed Assets Fixed Assets January I Additions Deductions December 31 General government $ 725,977 $ 34,053 $ 46,012 $ 714,018 Public works 2,311,351 1,112 2,312,463 Culture and recreation 1,435,474 8,057 1,443,531 TOTAL GENERAL FIXED ASSETS $ 4,472,802 $ 43,222 $ 46,012 $ 4,470,012 I I I I I I I I I I I I I I I I I I I -69- I I I I I I I I I I I I I I II I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP General obligation bonds and other forms of long-term debt supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. The amount of 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. GENERAL LONG-TERM DEBT PAYABLE Compensated absences payable $ 43,785 $ 37,633 Capita11ease payable 255,795 276,460 General obligation improvement bonds 410,000 545,000 Tax increment revenue bonds 285,000 440,000 TOTAL GENERAL LONG-TERM DEBT PAYABLE $ 994,580 $ 1,299,093 I I I I I I I I, I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT DECEMBER 31, 1999 AND 1998 1999 AMOUNT AVAILABLE FOR DEBT SERVICE Debt service funds $ 376,643 AMOUNTS TO BE PROVIDED Future tax levies, assessments and tax increments 617,937 $ 994,580 TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED -70- Exhibit F-l 1998 $ 424,978 874,115 $ 1,299,093 CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31,1999 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 GENERAL OBLIGATION REVENUE BONDS G.O. Water Revenue Bonds G.O. Water Revenue Bonds TOTAL REVENUE BONDS TOTAL ALL BONDS -71- Final Interest Issue Maturity Rates Date Date 5.50-5.85 11-01-91 2-01-02 4.00-4.45 12-01-93 2-01-04 I I I I I I I I I I I I I I I I I I I 9.00 5-01-91 2-01-00 4.15-4.75 4.20-5.40 11-01-95 11-01-96 2-01-11 2-01-12 I N r- I N 0 0 0 0 0 0 0 0 ~ OIl 0 0 0 0 0 0 0 0 .... 0\ .s 0 0 0 o^ 0 0 0 0 :E 0\ on" on" 6 lrl o^ 6 6 on" 0\ "'c::l 00 N - 00 "<t lrl 0\ 00 :a - {; -- N - "<t N "l r- N 0\ ~ - - N^ N^ f;Iil ~ '" N ~ - 0 ~ ~ 0 0 0 0 0 0 0 0 "8 "'c::l 0 0 0 0 0 0 0 0 S 0 0 0 o^ 0 0 0 0 on" 6 lrl~ lrl o~ 6 6 o^ 0 G) r- 0 r- M 00 - 0\ 0 CO G) \0 N 00 \0 M - "<t 0 "'c::l ~ N^ ~ ~ "'c::l 0 0 0 0 0 0 0 0 "'c::l 0 0 0 0 0 0 0 0 G) G) 0 0 0 0 00 0 o~ .~ ~ o~ lrl~ lrl. o. o~.o~ o^ '" lrl 0 '" \0 N 00 N N \0 00 00 ! ..... 0\ M r"t 0\ O\~ 00 r- 0\ "'c::l N~ "<t^ s::: - '" ~ ~ - - - - - - - - - - - - - - - - - - - CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 1999 Year Total Bonds Principal Interest 605,000 152,258 310,000 111,515 300,000 96,553 205,000 84,334 210,000 74,570 180,000 65,244 190,000 56,240 185,000 46,945 185,000 37,603 185,000 28,040 190,000 18,115 180,000 8,135 60,000 1,620 $ 2,985,000 $ 781,172 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL * 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. -73- I I I I I I I I I I I I I I I I I I I l"'l 0 0\ ~ ~ 0 ~ 0 0 I - Vi ("'l Vi Vi 0 0\ ~ '" N ("'l - 0 0\ ~ ~ ~ 0 ~ - ("'l N 0 .... '" 0 0 r-:. ~A 0\ 0 N N 0\ \0 0 - - \OA - "'c::l .... OOA NA ~A ori' \OA \OA r-: OOA 00 OOA :.c s:: 0 0\ - OOA :a 0 - 0 0\ 0\ 00 r-- \0 Vi ~ ("'l N - - I!l s:: - r-- ~ ...... r.l 0 Eo/') is 0 > 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -; ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .S< 0 0 0 0 0 0 0 OA OA 0 0 0 0 0 d U OA ori' ori' ori' OA 0 OA Vi Vi ViA 0 OA OA OA d 'S 0\ 00 00 00 0\ 00 0\ 00 00 00 0\ 00 \0 0\ - - - - - - - - - - - - N p., NA Eo/') I ~ 0 0 r-- - I '" Vi Vi e \0 \0 * ori' ViA = '" 0 "'c::l ] N N e s:: 0 Eo/') 0 I!l .... .s 0 is 0 X 0 -; 0 0 0 <<I > .S< 0 0 Eo-< ~ U ViA ori' .s 00 00 N N p., Eo/') '" 00 \0 0\ 0 0 ("'l "'c::l - 00 r-- ("'l ("'l 00 - s:: '" Vi r--A - ~A ~ ~ 0 e I!l ~ 00 - ori' r-: = - - ("'l ...... e Eo/') 0 > e -; 0 0 0 0 0 0 s- O 0 0 0 0 0 p.. 0 OA 0 0 0 0 ...... .c:) 0 Vi ViA 0 OA OA d .s ("'l N - N N - - - - ~ d p., Eo/') - - - - - - - - - - - - - - - - - - - I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION III STATISTICAL SECTION I I I I I I I I I I I I I I I I I I I 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 1990 $ 2,065,011 $ 616,929 $ 532,658 $799,543 $ 115,881 $ 1991 2,241,781 665,152 548,343 375,406 142,168 510,712 1992 2,301,950 654,085 571,077 434,015 116,173 526,600 1993 2,184,260 668,410 580,153 436,224 119,473 380,000 1994 2,536,943 755,097 618,047 433,699 128,600 601,500 1995 2,326,231 723,098 650,703 432,759 115,446 404,225 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 1998 2,891,689 961,340 788,253 505,240 110,287 489,025 37,544 1999 2,721,371 851,627 799,515 425,450 114,435 492,800 37,544 -75- CITY OF SHOREWOOD, MINNESOTA GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE LAST TEN FISCAL YEARS Table 2 Total General Licenses Fiscal General Fund Property and Inter- Misc/ Year Revenues Taxes Permits Governmental Fines Transfers 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 1998 2,770,825 1,776,853 223,248 532,359 73,337 165,028 1999 2,829,676 1,870,727 221,555 468,969 94,115 174,310 -76- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 3 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Percentage Collection Percentage Collection of Total Fiscal Total of Current of Levy of Prior Total Collections Year Levy Year's Levy Collected Year's Levy Collections to Levy 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 1998 1,778,585 1,760,645 98.99 15,694 1,776,339 99.87 1999 1,860,507 1,845,191 99.12 22,439 1,867,630 100.38 (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. -77- CITY OF SHOREWOOD, MINNESOTA ASSESSED VALUATION, TAX LEVIES AND MILL RATES (shown by year of tax collectibility) 1999 1998 1997 1996 1995 (2) (2) Tax capacity $ 9,663,252 $ 9,897,574 $ 9,901,879 $ 9,115,960 $ 8,045,468 Contribution to fiscal disparities pool (203,942 ) (214,901) (202,668 ) (178,279) (185,232) Receivable from fiscal disparities pool 342,621 337,116 350,823 332,110 310,337 Tax increment (312.066) (319.186) (294.512 ) (166.094 ) (22.195) Taxable valuation/Total tax capacity $ 9.489.865 $ 9.700.603 $ 9.755.522 $ 9.103.697 $ 8.148.378 Tax levies General $ 1,860,507 $ 1,778,585 $ 1,703,016 $ 1,573,930 $ 1,491,990 Debt service 24.783 26.1 18 Total $ 1.860.507 $ 1.778.585 $ 1.703.016 $ 1.598.713 $ 1.518.108 Tax capacity rate General 19.573 18.317 17.479 17.252 18.256 Debt service .179 .215 Total 19.573 18.317 17.4 79 17.431 18.471 (1) 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. (2) Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. -78- I I I I I I I I I I I I I I I I I I I I I Table 4 I 1994 1993 1992 1991 1990 (2) (2) (2) $ 7,396,104 $ 7,092,917 $ 7,681,118 $ 7,909,001 $ 7,033,863 I (205,973 ) (227,686) (212,697) (227,257) (209,164 ) 375,309 396,081 390,694 388,595 372,707 (317 ) I $ 7.565.123 $ 7.261.312 $ 7.859.115 $ 8.070.339 $ 7.197.406 I $ 1,491,888 $ 1,909,253 $ 1,840,663 $ 1,840,663 $ 1,667,451 I 26.847 23.201 23.914 16.325 17.125 $ 1.518.735 $ 1.932.454 $ 1.864.577 $ 1.856.988 $ 1.684.576 I 19.655 20.638 19.995 20.274 20.093 I .249 .159 .169 .180 .206 19.904 20.797 20.164 20.454 20.299 I I I I I I I I I I -79- CITY OF SHOREWOOD, MINNESOTA PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1000 OF TAX CAPACITY IN 1990-1999) Year (1) Taxes School District Watershed District Payable City County No. 276 No. 277 No.3 No.4 Miscellaneous 1990 20.299 27.916 53.658 43.434 .120 .436 5.121 1991 20.454 30.114 56.401 46.828 .131 .449 6.855 1992 20.164 34.327 64.530 56.643 .142 .490 5.481 1993 20.797 35.839 75.275 60.069 .668 .781 5.532 1994 19.904 37.441 77.323 67.785 .334 .707 5.724 1995 18.471 37.454 76.139 66.441 2.332 .762 5.847 1996 17.431 37.270 76.340 62.418 (2) 1.533 .864 6.390 1997 17.479 35.515 78.420 52.223 1.319 .860 6.149 1998 18.317 38.386 76.408 59.701 .660 .843 6.973 1999 19.573 40.994 69.423 67.286 .825 .880 8.043 (1) Includes vocational school (2) Includes market value levy of .077. -80- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Table 5 Totals School District No. 276 School Storm Watershed Dist. No. 277, Sewer Watershed Watershed District No.4 Watershed District District District Storm Sewer District No.2 No.3 No.4 District No.2 No.3 107.114 107.430 107.430 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 13.956 138.964 138.295 152.251 125.042 138.882 138.423 138.423 112.685 140.744 140.927 140.927 124.037 138.858 138.913 138.913 136.721 -81- Taxpaver Two S Properties Minnetonka Country Club First State Bank of Excelsior Waterford Partners LLC Shorewood Village Shopping Center, Inc. Steven C. & Mary Sue Simon Thomas J. & Cynthia J. Redmond NSP Property Tax Department Second Half LLC Lawrence Reid Total CITY OF SHOREWOOD, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31,1999 Type of Business Residential/Commercial Commercial Commercial Commercial Commercial Residential Residential Utility Commercial Residential -82- Table 6 I I I I I I I I I I 1999 Tax Capacity $ 109,326 64,970 62,559 47,800 45,250 32,823 32,441 28,760 24,932 22,986 $ 471.847 I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 CITY OF SHOREWOOD, MINNESOTA Table 7 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Percentage Collection Percentage Collection of Total Total of Current of Levy of Prior Total Collections Levv Year's Levy Collected Year's Levv Collections to Levy $ 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 99.31 215,817 190,437 88.24 7,089 197,526 91.52 185,174 172,344 93.07 41,897 214,241 115.70 Fiscal Year -83- (4) (5) (6) (7) CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31,1999 I Table 8 I Market Value $ 625.404.480 Debt Limit: 2.0% of market value (Note A) Amount of Debt Applicable to Debt Limit: I $ 12,508,089 Total Bonded Debt Less, (Note B) Improvement Bonds General Obligation Revenue Bonds Tax Increment Revenue Bonds Total Debt Applicable to Debt Limit I $ 2,985,000 (410,000) (2,290,000 ) (285.000 ) I Legal Debt Margin I $ 12.508.089 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 of2.0 percent of the market value of taxable property in the municipality. " I Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid) I "Subdivision 2. Not included in net debt of municipality for purpose of any statutory or charter limitation. Obligations issued here under may be authorized by resolution of the governing body without authorization by the electors, and shall not be included in the net debt of the municipality for the purpose of any statutory or charter limitation on indebtedness." I M.S.A. Section 475.51 (Definitions:) I "Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the following: I (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. I (2) Warrants or orders having no definite or fixed maturity. I (3) Obligations payable wholly from the income from revenue-producing conveniences. Obligations issued to create or maintain a permanent improvement revolving fund. I Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be derived. I Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. I I All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in computing the net debt of the municipality." * After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24. -84- I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Table 9 Ratio of Net Bonded Debt Net Less Amount to Assessed Bonded Fiscal Estimated (1) Gross Reserved for Net Va1ues/ Debt Year Population Tax Capacity Bonded Debt Debt Service Bonded Debt Tax Capacity Per Capita 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 1998 6955 9,700,603 3,015,000 424,978 2,590,022 .2670: 1 372.40 1999 7008 9,489,865 2,700,000 376,643 2,323,357 .2448:1 331.53 (1) Gross bonded debt amounts in this Table are general obligation special assessment bonds and revenue bonds whose principal source of funding will be sources other than general property taxes. The Tax Increment Revenue Bonds (totaling $285,000) are not included in the gross bonded debt as they are not backed by the full faith and credit of the City. -85- CITY OF SHOREWOOD, MINNESOTA Table 10 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDlTURES* Percent of Debt Service Total Total General to General Year Principal Interest Debt Service Expenditures* Expenditures 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 767,000(4) 72,461 839,461 2,479,151 33.86 1997 142,500 39,921 182,421 2,614,217 6.98 1998 135,000 33,099 168,099 2,891,689 5.81 1999 135,000 26,645 161,645 2,721,371 5.93 (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 -86- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31,1999 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 $ 2.700.000 $ 2.323.357 100.00 % $ 2.323.357 Overlapping Debt $ 165,060,000 $ 163,904,456 1.04 % $ 1,704,606 Hennepin County 18,080,000 14,420,900 1.38 199,008 Hennepin Suburban Park District 54,560,000 33,347,080 19.78 6,596,052 School District #276 12,125,000 10,538,640 2.09 220,258 School District #277 110.297.310 11 0.297 .310 ~ 55 1.487 Metropolitan Council Total Overlapping Debt $ 360.122.310 $ 332.508.386 2.79% $ 9.271.411 Total Direct and Overlapping Debt $ 362.822.31 0 $ 334.831.743 3.46 % $ 11.594.768 * Direct debt includes all debt backed by the full faith and credit of the City even though it will be fmanced 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. -87- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 12 REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Net Ratio of Net Fiscal Gross (1) Revenue Debt Service Revenue to Year Revenue Expenses Available Principal Interest Total Debt Service 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 1998 311,925 179,914 132,011 185,000 125,085 310,085 .4281 to 1 1999 454,227 201,325 252,902 180,000 117,642 297,642 .8497 to 1 (1) Excluding depreciation and interest on bonds -88- CITY OF SHOREWOOD, MINNESOTA PROPERTY VALUE AND CONSTRUCTION LAST TEN FISCAL YEARS (1) Commercial Construction Fiscal Year Value 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 $ 20,000 960,000 2,030,000 1,350,000 695,000 1,317,000 Sources (1) City Planning and Inspection Department (2) County Assessor's Office -89- (1) Residential Construction Number of Units Value I I I I I I I I I I I I I I I I I I I 82 $ 16,252,990 69 14,044,120 55 10,899,687 102 17,941,776 86 16,530,925 40 10,167,210 37 9,393,436 41 11,825,463 35 9,563,920 39 10,673,841 I I I I I I I I I I I I I I I I I I I (2) Property Value Commercial Residential Total $ 11,820,800 $ 299,565,500 $ 311,386,300 11,997,100 341,843,200 353,840,300 12,081,200 370,575,700 382,656,900 11,307,900 391,057,000 402,364,900 11,338,700 413,780,300 425,119,000 9,793,000 453,616,100 463,409,100 10,562,200 517,983,900 528,546,100 13,034,900 542,674,600 555,709,500 14,572,900 580,878,400 595,451,350 18,097,200 607,425,000 625,522,200 Table 13 -90- -91- Table 14 I I 1956 Council-Administrator I Adopted May 14, 1956 January 1 6.0 Square Miles I 7,008 5,917 I 4,646 4,223 38.1 I 9.8 1.7 I 2.7 15 I $65.00/quarter 56.2 177 I 711 I $16,184,329 I I 5 95.8 I 1,081 403,000 gallons I 15.2 4,680,000 gallons 165 I $1.45/1000 gallons 22 I 20 42 5,162 I 3,748 I 72.6% I CITY OF SHOREWOOD, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31,1999 Year of incorporation Form of government Fiscal year begins Area of city Population 1999 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 1999 Number of permits Value 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