2000 - Comp. Annual Financial Report
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CITY OF SHOREWOOD,
MINNESOTA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
for the
YEAR ENDED
DECEMBER 31,2000
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CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2000
CRAIG DAWSON, CITY ADMINISTRATOR
REPORT PREPARED BY
BONNIE BURTON, FINANCE DIRECTOR/TREASURER
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31,2000
Exhibit Page No.
I. INTRODUCTORY SECTION
Elected and Appointed Officials 1
Organizational Chart
Letter of Transmittal I - VI
Certificate of Achievement for Excellence in Financial Reporting
II. FINANCIAL SECTION
Independent Auditors' 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 - 23
Combining and Individual Fund and Account Group Financial Statements and Schedules
General Fund
Comparative Balance Sheets A-I 24
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual A-2 25 - 30
Debt Service Funds
Combining Balance Sheet B-1 31 - 32
Combining Statement of Revenue, Expenditures and Changes in Fund Balance B-2 33 - 34
Capital Projects Funds
Combining Balance Sheet C-1 35 - 36
Combining Statement of Revenue, Expenditures and Changes in Fund Balance
(Deficit) C-2 37 - 38
Enterprise Funds
Combining Balance Sheet D-I 39 - 40
Combining Statement of Revenue, Expenses and Changes in Retained Earnings D-2 41 - 42
Combining Statement of Cash Flows D-3 43 - 44
Water Fund
Comparative Balance Sheets D-4 45
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D-5 46
Comparative Statements of Cash Flows D-6 47
Sewer Fund
Comparative Balance Sheets D-7 48
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D-8 49
Comparative Statements of Cash Flows D-9 50
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31,2000
Recycling Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Stormwater Management Utility Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Liquor Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Combining Balance Sheets
Combining Schedules of Revenue, Expenses and Changes in Retained Earnings
(Deficit)
Combining Schedules of Cash Flows
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
General Long-term Debt Account Group
Comparative Statements of General Long-term Debt
Schedule of Bonds Payable
Schedule of Debt Service Requirements
III.
STATISTICAL SECTION
General Fund Expenditures and Other Uses by Function
General Fund Revenue and Other Sources by Source
Property Tax Levies and Collections
Assessed Valuation, Tax Levies and Mill Rates
Property Tax 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
Exhibit Page No.
D-10 51
D-11 52
D-12 53
D-13 54
D-14 55
D-15 56
D-16 57
D-17 58
D-18 59
D-19 60 - 61
D-20 62 - 63
D-21 64 - 65
E-1 66
E-2 67
E-3 68
F-1 69
F-2 70 - 71
F-3 72 - 73
1 74
2 75
3 76
4 77 - 78
5 79 - 80
6 81
7 82
8 83
9 84
10 85
11 86
12 87
13 88 - 89
14 90
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CITY OF SHOREWOOD, MINNESOTA
SECTION I
INTRODUCTORY SECTION
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CITY OF SHOREWOOD, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31,2000
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
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Appointed Officials
Craig Dawson
Bonnie Burton
City Administrator
Finance Director/Treasurer
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-1-
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Personnel
Accounting
Payroll
Investments
Utility Billing
Accts. Payable
Accts. Receivable
SpeCial Assessments
Budgeting
MIS
Purchasi
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Off-Sale Retail
CONTRACTEDSER~CES
ASSESSOR-HENNEPIN COUNTY
RECYCLlNG--EZ RECYCLING
UTILITIES---MUNITECH
ANIMAL CONTROL-CITY OF ORONO
ANIMAL IMPOUND--PAWS, CLAWS & HOOVES
FIRE (Islands)--MOUND
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CITY OF SHOREWOOD ORGANIZATION CHART
ADMINISTRATION
EXECUTIVE SECRETARY/
DEPUTY CLERK
RECEPTIONISTI
PARK SECRETARY
COMMUNICATIONS
TECHNICIAN
General Government
Licensing
Elections
Records
Legal Publications
Public Information
Recreation Programs
Cable TV Franchise
Updaled 3/29/01
ADVISORY BOARDS
PARK COMMISSION
PLANNING COMMISSION
LAND CONSERVATION &
ENVIRONMENT
COMMITTEE (LCEC)
CITY ATTORNEY
Planning
Zoning Administration
Property Records
Inspection
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LMCC . Lake Mlnnetonka
Communications Commission
LMCD. lake Minnetonka Conservation
District
ENGINEERING
ADMIN. ASST.
Building and Grounds
Tree Maintenance
Park Maintenance
Street Maintenance
Equipment Maintenance
Stormwater System
Street Lighting
SanitationlWeeds
Janitor Services (Contract)
Utility Maintenance (Contract)
Park Planning (Contract)
Engineering Services
Project Mgmt
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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
May 17,2001
Honorable Mayor and Members of the City Council
City of Shorewood, Minnesota
The Comprehensive Annual Financial Report of the City of Shorewood, Minnesota for the fiscal year ended December 31,
2000, is herewith 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 are
accurate inaB material respects and are reported in a manner designed to present fairly the financial position and results of
operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain. an
understanding of the City's financial activities have been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and Statistical. The
Introductory sectjon includes this trartsmittal 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 had a population of 7,400 at the 2000
censUs.
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~J PRINTED ON RECYCLED PAPER
While the City experienced an accelerated rate of growth~in residential development during the 1980's, the growth rate slowed
during the 1990's. The City; which is cUTIently 90% developed, will continue to experience growth in its residential base in the
future but because of the limited availability of large tracts of land, this growth will come at a reduced rate and will be much
smaller developments than in the past.
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MAJOR INITIATIVES
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FINANCIAL AND MANAGEMENT EMPHASIS
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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 ha,s identified issues facing the City and prioritized them so that the
staff can efficiently and effectively allocate time and resources,
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The City Council's calendar consists of three phases. The first phase is Planning, which includes review of the previous year's
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.
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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.
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The third phase is Budgeting. The operating budget is established based on decisions made in the first two phases. A budget
format is being utilized which provides information and analytical data to the City Council and other readers. It defines
departmental missions and sets objectives for the budget year. In addition, it measures services provided and identifies the net
affect each departmental budget has on property taxes.
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Emphasis on System Improvements
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The City continues to improve its communications through the Communications Plan adopted in 1997. The Communications
Program includes:
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· Public notices that have been designed to meet legal requirements yet are easier to read and understand.
· City newsletter distributed monthly rather than quarterly, as had been previ~us practice. I
· Numerous educational brochures produced and mailed with the monthly newsletter.
. Press releases about current issues, projects and special events.
· Emphasis on informal information meetings.
· City web page improvements to enhance attractiveness while continuing to provide useful information. I
· Use of the cable access channel bulletin board to infomi the public of city activities.
. Promotion of public usage of the "Shoreline" phone message line.
· A voice mail information system available to residents 24 hours a day with information about city services and events. I
· 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.
Emphasis on Public Improvements and Programs I
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 .1
City. Significant progress was made toward completing updates to the Comprehensive Plan in 2000 and a Stormwater
Management Plan. Both are to be completed in 2001.
Capital improvements in 2000 included construction of a new park building known as Eddy Station in Freeman Park and I
acquisition of a tract of land known as Gideon Glen. This land serves as shelter for wildlife and is one of the few areas around
Lake Minnetonka where maple basswood trees still exist.
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The Park Commission continued its process for considering trails in Shorewood. This process involves citizens in the decision
process to determine 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. The process in 2000 included public open
forums, walks with citizens along potential trail routes, and citizen involvement in trail design.
Public works equipment was purchased, including a new sweeper to replace an aging unit, and a portable trailer mounted
generator to serve as a safeguard against prolonged power outages. Well controls were installed to replace obsolete
technology.
Emphasis on Efficiently, Effectively Meeting Service Needs
Shorewood is committed to working cooperatively with area govenunental jurisdictions to carefully consider optional methods
to effectively deliver public services as efficiently as possible. The City has various contractual arrangements with other
govenunental jurisdictions and with private enterprise for providing many of these services. The City is participating in
visioning work-sessions designed to identify cooperative opportunities with other area cities. The City is also involved in
cooperative employee training, sub-regional housing planning, animal control, disaster preparedness and other areas of mutual
concern as an active participant in the Lake Minnetonka Area Cooperating Cities group. The Lake Minnetonka area cities
continue to work jointly to address mutual problems.
In 2000, the City, along with the Cities of Excelsior, Deephaven, Greenwood and Tonka Bay, established the Excelsior Fire
District, a joint powers organization to replace the previous contractual arrangement with the City of Excelsior Fire
Department. The Excelsior Fire District is working to develop appropriate facilities which will best serve the cities far into the
future.
FINANCIAL INFORMATION
INTERNAL CONTROLS
City management staff is responsible for establishing and maintaining an internal control structure within the accounting system
that is 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: I) 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 legallevel 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 [mancial section of this report, the City continues meeting 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, 2000 and the amount of increases or decreases in relation to the prior year's revenues.
III
Increase
Percent of (Decrease)
Revenues and Other Financing Sources Amount Total from 1999
General Property Taxes $ 1,938,705 62.45% $ 67,978
Licenses and Permits 346,086 11.15% 124,531
Jntergovernmental 485,046 15.62% 16,077
Charges for Services 29,381 0.95% (13,967)
Fines and Forfeitures 76,483 2.46% (17,632)
Interest on Investments 142,599 4.59% 89,709
Miscellaneous 58,244 1.88% 26,572
Operating Transfers In 28,000 0.90% (18,400)
Total $ 3,104,544 100.00% $ 274,868
Overall revenues increased by $274,868 from 1999 to 2000. The largest increase in revenue was in licenses and permits. The
primary reason for this is that building permit revenue increased substantially from 1999 due to several new subdivisions in the
city and related brisk building activity. Interest revenue increased in 2000 due to increased available cash balances. In
addition, market value adjustments were made to the City's investments in accordance with GASB 31. Intergovernmental
revenue was on target in 2000, but fmes and miscellaneous revenue decreased.
The following table presents a summary of General Fund expenditures for the fiscal year ended December 31,2000 and the
amount of increases or decreases in relation to the prior year's expenditures.
Increase
Percent of (decrease)
Expenditures and Other Uses Amount total from 1999
Current:
General Government $ 984,586 33.70% $ 133,734
Public Safety 827,483 28.32% 27,968
Public Works 435,024 14.89% 10,778
Parks and Recreation 135,891 4.65% 21,456
Capital 0 utlay 6,387 0.22% (33,136)
Debt Service 37,544 1.28%
Operating Transfers 494j800 16.94% 2,000
Total $ 2,9~1,715 100.00% $ 162,800
Overall expenditures were somewhat higher in 2000 from 1999. This is primarily due to payment of a court awarded settlement
in a lawsuit and related additional legal service Charges. There were also election expenses in 2000 above 1999 levels. Public
Safety expenditures for police and frre services increased in 2000 primarily due to salary adjustments and consultants' fees
. related to the establishment of a joint powers frre district. Capital outlay was somewhat higher for the year 2000.
The City Council has continued its plan to accumulate resources for future capital equipment and improvement projects. These
amounts were transferred to various capital project funds and will be applied to future equipment acquisitions and capital
improvements. Operating transfers increased marginally from 1999. Budgeted transfers for capital improvement purposes
increased during 2000 from $492,800 to $494,800.
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GENERAL FUND BALANCE
The General Fund.balance as of December 31,2000 was $1,749,180. The fund balance increased by $182,829 during 2000, or
11.7%. The fund balance is designated for working capital requirements through the ftrst six months of the year. The fund
balance now stands at 59.87% of the current year budget. The policy ofthe City is to maintain a fund balance at 40% to 50% of
the current budget. It is important for the City to maintain the an adequate fund balance as a reserve to meet expenditures in the
General fund until property tax proceeds are received in July. The, City Council will continue to manage the fund balance at
this level.
ENTERPRISE OPERATION
The City's enterprise fund activities for 2000 are summarized as follows:
o penting 0 perating
Operating
income (loss)
revenues expenses
Water $465,548 $358,728
Sewer 709,258 603,195
Recycling 98,722 8 7 ,4 1 9
Storm water 52,340 10,680
Liquor
Tonka Bay 190,065 140,308
Waterford Center 171,173 193,520
Shorewood Plaza 283,072 197,794
$106,820
106,063
11 ,303
41,660
49,757
(22,347)
85,278
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.
The Liquor Fund experienced a substantial net operating proftt in 2000 after several years of losses. The addition of a full time
liquor operations manager and tighter controls within the operation accounts for the return to profttability. The Liquor
Committee and management continue to explore avenues to continue to increase proftt margins in the future.
DEBT ADMINISTRATION
As of December 31,2000, the City's debt outstanding totaled $2,613,826. Of this total, $280,000 are general obligation special
assessment bonds issued to finance the construction of sanitary sewer, street, water and storm sewer improvements. The City
also has a capital lease to fmance the City's portion of construction of the Southshore Senior Community Center in the amount
of $233,826.
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 $2,100,000. The bonds will be repaid
from special assessments on affected properties and from Water Fund revenues.
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. The developer has direct control over the pace Qf
development, so retirement of the debt was to be made on a "pay-as-you-go" basis rromtax 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 ta?c
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. The remaining bonds expired on February 1, 2000. No further revenue will be derived
from the district, which expired 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 five-year capital improvement plan, low outstanding
debt, sound fmancial management, and anticipated maintenance oflow debt ratios by the City.
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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 allocat,ed to the participating funds. During 2000, the <;::ity of
Shorewood earned $530,549 in interest revenue.
RISK MANAGEMENT
The City of Shorewood's worker's compensation insurance and its general property and liability coverage are provided through
the League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT worker's compensation program is a joint self-
insurance plan designed to lower and stabilize cities worker's compensation costs and to assure that cities have a source of
coverage available.
Each participating city deposits with the LMCIT its worker's compensation deposit premium for the policy year. The deposit
premium is calculated using standard manual rates with the applicable volume discounts and experience modification factor.
From these deposits, LMCIT purchases reinsurance to protect the program from catastrophic and abnormal payment claims.
The balance of the deposits and reserves are invested, with the earnings accruing to the benefit of all participants. LMCIT's
reserves and rates are reviewed annually by an actuary to help assure that the program remains financially strong.
OTHER INFORMATION
INDEPENDENT AUDIT
Minnesota State Statutes require an annual audit of the City's accounts by the Minnesota State Auditor or by independent
certified public accountants. The auditor's report on the general-purpose [mancial statements and schedules is included in the
financial section of this report.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Shorewood for its comprehensive annual financial report for the fiscal year
ended December 31, 1999.
In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a 'period of one year only. We believe our current comprehensive annual financial
report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the !GFOA to
determine its eligibility for another certificate. .
ACKNOWLEDGMENTS
I would like to acknowledge the efforts of the city staff, especially the Finance Department staff, and the City's independent
auditor, without whose assistance and cooperation the timely preparation of the Comprehensive Annual FinancialReport would
not have been possible.
Respectfully Submitted,
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Bonnie Burton
Finance Director/Treasurer
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Shorewood,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1999
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.
~b~
f~e:::~
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CITY OF SHOREWOOD, MINNESOTA
SECTION II
FINANCIAL SECTION
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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, 2000 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 in the United States and the standards
applicable to fmancial 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 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures ip 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 fmancial statements referred to above present fairly, in all material respects, the fmancial
position of the City of Shore wood, Minnesota as of December 31,2000, 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 the United
States.
In accordance with Government Auditing Standards, we have also issued a report dated April 11, 2001 on our consideration
of the City's internal control over fmancial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grants. That report is an integral part of an audit conducted in accordance with the standards
applicable to fmancial audits contained in Government Auditing Standards, and in considering the results of the audit, should
be read along with the independent auditors' report.
Our audit was performed for the purpose of forming an opinion on the general purpose fmancial statements taken as a whole.
The combining and individual fund financial statements listed in the table of contents are presented for the purpose of
additional analysis and are not a required part of the general purpose fmancial 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 fmancial
statements taken as a whole.
April 11, 2001
Minneapolis, Minnesota
OhthJJ ~ ~ ~J LLf
ABDO, EICK & MEYERS, LLP
Certified Public Accountants
612.835.9090 . Fax 612.835.3261
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CITY OF SHOREWOOD, MINNESOTA
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose financial statements and notes to the financial statements are intended to provide an
overview and broad perspective of the City's financial position and operations. These statements present a
summary set of information needed to control and analyze current operations to determine compliance with
legal and budgetary limitations and to assist in financial planning.
The following general purpose financial statements are presented:
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenue, Expenditures and Changes in Fund Balance - 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
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 2000
(With comparative totals for December 31, 1999)
Governmental Fund Types
ASSETS AND OTHER DEBITS
ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Note receivable
Due from other funds
Inventories, at cost
Prepaid items
Fixed assets, net
Bond discount, net
OTHER DEBITS
Amount available in debt service funds
Amounts to be provided for debt retirement
Debt Capital
General Service Projects
$ 1,906,088 $ 301,969 $ 1,510,354
19,440 1,684 7,154
39,642
35,471 261,588
405 76,218 2,750
54,558
35,500
TOTAL ASSETS AND OTHER DEBITS
$ 2,036,546
$ 379,871
$ 1,836,404
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Refundable deposits payable
Deferred revenue
Due to other funds
Capital lease payable
General obligation bonds payable
Tax increment bonds payable
General obligation revenue bonds payable
$ 109,314 $ $ 153,084
41,870
117,757
18,425 76,014 2,750
219,558
TOTAL LIABILITIES
287,366
76,014
375,392
EQUITY AND OTHER CREDITS
Investment in general fixed assets
Contributed capital
Retained earnings
Unreserved
Fund balance (deficit)
Reserved
Unreserved
Designated
Undesignated
35,500 303,857
1,713,680 1,540,486
(79,474)
1,749,180 303,857 1,461,012
$ 2,036,546 $ 379,871 $ 1,836,404
TOTAL EQUITY AND OTHER CREDITS
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS
See Notes to Financial Statements.
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I Exhibit 1
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I Proprietary Totals
Fund Types Account Groups (Memorandum Only)
General
General Long-term
I Enterprise Fixed Assets Debt 2000 1999
I $ 3,493,430 $ $ $ 7,211,841 $ 7,603,735
24,133 52,411 63,963
35 39,677 55,310
279,287 576,346 294,333
I 636,444 715,817 826,184
46,500
565,000 619,558 24,194
I 317,115 317,115 257,966
14,069 49,569 49,474
9,061,021 5,083,289 14,144,310 13,032,898
15,875 15,875 17,278
I 303,857 303,857 376,643
265,175 265,175 617,937
I $ 14,406,409 $ 5,083,289 $ 569,032 $ 24,311,551 $ 23,266,415
I $ 67,522 $ $ $ 329,920 $ 324,015
18,100 55,206 115,176 97,206
I 117,757 133,616
97,189 155,181
400,000 619,558 24,194
233,826 233,826 255,795
I 280,000 280,000 410,000
285,000
2,100,000 2,100,000 2,290,000
I 2,585,622 569,032 3,893,426 3,975,007
I 5,083,289 5,083,289 4,470,012
9,581,322 9,581,322 9,541,322
I 2,239,465 2,239,465 1,701,209
339,357 411,093
I 3,254,166 3,225,275
(79,474) (57,503)
I 11,820,787 5,083,289 20,418,125 19,291,408
$ 14,406,409 $ 5,083,289 $ 569,032 $ 24,311,551 $ 23,266,415
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CITY OF SHOREWOOD, MINNESOTA I
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 2000
(With comparative totals for the year ended December 31, 1999)
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Debt Capital I
General Service Projects
REVENUE
Property taxes $ 1,938,705 $ $ I
Licenses and permits 346,086
Intergovernmental 485,046 240,909
Charges for services 29,381 I
Fines and forfeitures 76,483
Special assessments 60,098 1,615
Interest on investments 142,599 17,634 88,101
Miscellaneous 58,244 85,997 I
TOTAL REVENUE 3,076,544 77,732 416,622
EXPENDITURES I
Current
General government 984,586 I
Public safety 827,483
Public works 435,024
Culture and recreation 135,891
Capital outlay 6,387 1,150,156 I
Debt service
Principal 21,970 130,000
Interest and service charges 15,574 20,518 I
TOTAL EXPENDITURES 2,426,915 150,518 1,150,156
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 649,629 (72,786) (733,534) I
OTHER FINANCING SOURCES (USES) I
Operating transfers in 28,000 561,675
Operating transfers out (494,800) (3,000)
TOTAL OTHER FINANCING SOURCES (USES) (466,800) 558,675 I
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND I
OTHER FINANCING USES 182,829 (72,786) (174,859)
FUND BALANCE, JANUARY 1 1,566,351 376,643 1,635,871 I
RESIDUAL EQUITY TRANSFER IN
RESIDUAL EQUITY TRANSFER OUT
FUND BALANCE, DECEMBER 31 $ 1,749,180 $ 303,857 $ 1,461,012 I
See Notes to Financial Statements. I
-5- I
I Exhibit 2
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I Totals
(Memorandum Only)
I 2000 1999
$ 1,938,705 $ 2,204,851
I 346,086 221,555
725,955 509,697
29,381 43,348
I 76,483 94,115
61,713 95,138
248,334 110,500
I 144,241 78,079
3,570,898 3,357,283
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984,586 850,852
I 827,483 799,515
435,024 424,246
135,891 114,435
I 1,156,543 737,614
151,970
310,665
I 36,092 211,567
3,727,589 3,448,894
I (156,691) (91,611)
I 589,675 557,850
(497,800) (559,450)
I 91,875 (1,600)
I (64,816) (93,211)
3,578,865 3,672,076
I 11,633
(11,633)
I $ 3,514,049 $ 3,578,865
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$ 182,829
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CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 2000
Exhibit 3
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest on investments
Miscellaneous revenue
Variance -
Favorable
Budget Actual (Unfavorable)
$ 1,936,779 $ 1,938,705 $ 1,926
195,850 346,086 150,236
453,811 485,046 31,235
54,100 29,381 (24,719)
95,000 76,483 (18,517)
100,000 142,599 42,599
43,700 58,244 14,544
2,879,240 3,076,544 197,304
TOTAL REVENUE
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Capital outlay
Debt service
909,075 984,586 (75,511)
836,210 827,483 8,727
489,292 435,024 54,268
137,938 135,891 2,047
2,375 6,387 (4,012)
37,550 37,544 6
2,412,440 2,426,915 (14,475)
466,800 649,629 182,829
28,000 28,000
(494,800) (494,800)
(466,800) (466,800)
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES
$
182,829
FUND BALANCE, JANUARY 1
1,566,351
FUND BALANCE, DECEMBER 31
$ 1,749,180
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 2000
OPERATING REVENUE
Sales
Less cost of sales
GROSS PROFIT
Charges for services
Permits and connection fees
GROSS PROFIT AND OPERATING REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
MCES disposal charges
Rent
Advertising
Other
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TOTAL OPERATING EXPENSES
OPERATING INCOME
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NONOPERATING REVENUE (EXPENSE)
General property taxes
Special assessments
Interest on investments
Other income
Interest expense
TOTAL NONOPERATING REVENUE (EXPENSE)
NET INCOME BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
See Notes to Financial Statements.
-8-
Exhibit 4
Enterprise
$ 2,532,379
(1,888,069)
644,310
1,130,178
195,690
1,970,178
292,986
34,222
32,652
378,710
26,449
189,551
137
18,436
21,177
75,031
306,164
169,222
8,986
37,921
1,591,644
378,534
10
41,410
282,215
37,698
(109,736)
251,597
630,131
10,000
(101,875)
538,256
1,701,209
$ 2,239,465
-9-
Exhibit 5 I
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Enterprise I
$ 378,534
37,698 I
1,403 I
378,710
(19,460)
(3,086) I
(565,000)
(59,149)
955 I
(122,497)
5,133 I
400,000
433,241 I
10,000
(101,875) I
(91,875)
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46,500
(190,000) I
(109,736)
(876,845)
16 I
140,506
(989,559)
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287,694
(360,499) I
3,853,929 I
$ 3,493,430
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 2000
CASH FLOWS FROM OPERATING ACTIVITIES
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
Due from other funds
Inventory
Prepaid items
Increase (decrease) in liabilities:
Accounts payable
Salaries and compensated absences payable
Due to other funds
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds
Operating transfers to other funds
NET CASH USED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal payments on note receivable
Bond principal paid
Interest paid on revenue bonds
Acquisition of fixed assets
Property taxes collected
Special assessments collected
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
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 in the United States, the fmancial statements of the
reporting entity include those of the City of Shorewood (the primary government) and its component units. The
City of Shorewood does not have any component units requiring either a blended or discrete presentation.
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis offunds 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. Governmental fund types
use the flow of current fmancial resources measurement focus and the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (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 fmancial
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 in the United States 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 financed by proprietary funds.
Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual
basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred. The City applies all applicable F ASB pronouncements 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, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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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
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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.
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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.
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Property Taxes
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Investments are valued at fair value.
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.
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Taxes payable on homestead property, as defmed by State statutes, are partially reduced by a homestead and
agricultural credit aid. The credit is paid to the City by the State of Minnesota in lieu of taxes levied against
homestead property. The State remits this credit in two equal installments in July and December each year.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a
deferred revenue liability for delinquent taxes not received within 60 days after year end.
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Special Assessments
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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 in governmental funds. Enterprise fund capital type special
assessments are offset by contributed capital.
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Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of inter fund
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."
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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 from available fmancial resources.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Inventories and Prepaid Items/Deferred Charges
The inventories are stated at average cost, which approximates market using the flIst-in, first-out (FIFO)
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items or deferred charges.
Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group
at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their
estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated.
Interest incurred during construction is not capitalized on general fixed assets.
Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only to the City) are not capitalized.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'
lives are not included in the general fixed assets group or capitalized in the proprietary funds.
Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and
equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date
of donation.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are
constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the
capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period.
Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line method
over the following estimated useful lives:
Assets
Years
Furniture and equipment
Collection and distribution system
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Compensated Absences
Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available 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
financial resources are reported in the general long-term debt account group. At December 31, 2000 the amount
recorded in general long-term debt was $55,206. 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 financing source net of the applicable premium or
discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt
service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are
deferred and amortized over the life of the bonds using the straight line method.
-12-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fund Equity
Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific
purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund
balance represent tentative management plans that are subject to change. The proprietary fund's contributed
capital represents equity acquired through capital grants and capital contributions from developers, customers or
other funds.
Memorandum Only - Total Columns
Total columns on the general purpose [mancial statements are captioned as "memorandum only" because they
do not represent consolidated [mancial information and are presented only to facilitate [mancia1 analysis. The
columns do not present information that reflects [mancial position, results of operations or cash flows in
accordance with generally accepted accounting principles in the United States. Interfund eliminations have not
been made in the aggregation of this data.
Comparative Data/Reclassifications
Comparative total data for the prior year have been presented in the selected sections of the accompanying
[mancia1 statements in order to provide an understanding of changes in the City's [mancial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
Note 2:
STEW ARDSIDP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles in the United
States for the general fund. All annual appropriations lapse at fiscal year end.
In August of each year, all departments of the City submit requests for appropriations to the City Administrator
so that a budget may be prepared. Before September 15, the proposed budget is presented to the City's council
for review. The council holds public hearings and a [mal budget is prepared and adopted in early December.
The appropriated budget is prepared by fund, function and department. The City's department heads, with the
approval of the City Administrator, may make transfers of appropriations within a department. Transfers of
appropriations between departments require the approval of the City Council. The legal level of budgetary
control is the department level. Budgeted amounts are as originally adopted, or as amended by the City Council.
B.
Excess of Expenditures over Appropriations
For the year ended December 31,2000, expenditures exceeded appropriations in the following departments
within the General Fund:
Department Budget Actual Excess
Administrative $ 108,253 $ 134,152 $ 25,899
Professional Services 246,866 321,279 74,413
Municipal Building 92,500 93,655 1,155
Other General Govermnent 121,578 177,962 56,384
Fire Protection 171,175 191,175 20,000
Sanitation and Waste Removal 4,125 7,679 3,554
Capital Outlay 2,375 6,387 4,012
These overexpenditures were funded with revenue in excess of budget and available fund balance.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED
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C.
Deficit Fund Equity
The following funds had deficit fund balances as of December 31, 2000. The deficit in these funds will be
eliminated by future revenue sources.
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Capital Projects Funds
Park Capital Improvement
Senior Community Center
$
59,893
19,581
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Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
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A.
Deposits and Investments
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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:
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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 110% of the deposits not covered by insurance or bonds (140% in
the case of mortgage notes pledged).
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Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and
certain other state or local government obligations. Minnesota Statutes require that securities pledged as
collateral be held in safekeeping by the City or in a fmancial institution other than that furnishing the collateral.
At year end, the City's carrying amount of deposits was $643,964 and the bank balance was $951,256. Of the
bank balance, $758,102 was covered by federal depository insurance and the remaining was not insured.
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Investments
Investments are categorized into these three categories of credit risk:
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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.
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3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent
but not in the City's name.
The City also invests in various money market accounts. The investment in the money market accounts is not
subject to the categories of credit risk described above. The value of the investment in money markets is equal
to the value of the pool shares.
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-14-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
At year end, the City's investment balances were as follows:
U.S. Government Securities
Commercial Paper
Category Fair
2 3 Value
$ 3,672,579 $ - $ - $ 3,672,579
2.441.199 2.441.199
$ 6.113.778 $ - $ 6,113,778
Total
Investments not subject
to categorization:
4M Money Market Fund
Broker Money Market Accounts
Primesweep
62,456
12,086
377.657
Total investments
$ 6.565.977
Cash on Hand
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:
Cash on hand
Carrying amount of deposits
Carrying amount of investments
$ 1,900
643,964
6.565.977
$ 7.211.841
Total cash and temporary investments
B.
Fixed Assets
A summary of changes in general fixed assets for the year ended December 31, 2000 is as follows:
Land
Buildings and structures
Improvements other than buildings
Furniture and equipment
Balance
Beginning Balance
of Year Additions Deletions End of Year
$ 456,826 $ - $ - $ 456,826
1,353,826 377,185 1,731,011
1,363,488 2,000 1,361,488
1.295.872 261.290 23.198 1.533.964
$ 4.470.012 $ 638.475 $ 25.198 $ 5.083.289
Total
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
The following is a summary of proprietary fund type fixed assets at December 31, 2000:
Water
Sewer
Enterprise Funds
Stormwater
Management
Utility Liquor
Total
Furniture and equipment $ 24,178 $ 37,827 $ - $ 113,546 $ 175,551
Collection and
distribution system 6,783,835 7,876,296 576,748 15,236,879
Total 6,808,013 7,914,123 576,748 113,546 15,412,430
Less accumulated depreciation (1.375.393 ) (4,907.305) (1,094 ) (67,617) (6.351,409)
Net Fixed Assets $ 5.432.620 $ 3.006.818 $ 575.654 $ 45.929 $ 9.061.021
C. Deferred Revenue
Deferred revenue at December 31, 2000 is comprised of the following:
Debt Capital
General Service Proiect Total
Delinquent taxes $ 18,193 $ - $ - $ 18,193
Special assessments
Delinquent 191 191
Deferred 232 76,014 2,559 78,805
Total $ 18.425 $ 76.014 $ 2.750 $ 97.189
D. Long-term Debt
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and
construction ofmajor 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 31,2000
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 finance 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
Balance at
Maturitv Date Year End
2-01-02 $ 190,000
2-01-04 90,000
$ 280.000
G.O. Improvement Bonds
of1991
G.O. Improvement Bonds
of 1993
$ 960,000
325,000
5.60-5.85%
11-01-91
4.00-4.45
12-01-93
Total General Obligation Improvement Bonds
Other General Long-Term Debt
Capital Lease Payable
During 1996, the City entered into a lease, with option to purchase, agreement as lessee for fmancing the South
Shore Senior Center project. Title remains with the City so long as they are not in default of terms in the lease
agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been
recorded at the present value of the future minimum lease payments as of the date of its inception.
$ 311,000
6.22%
8-01-08
$ 233.826
5-30-96
Sick leave/severance payable
This liability represents vested benefits earned by employees through the end of the year, which will be paid at
retirement in future periods.
Total Sick leave/severance payable
$ 55.206
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
$ 1,920,000
860,000
4.45-4.75% 11-01-95
2-01-11
2-01-12
$1,410,000
690.000
$2.100.000
4.45-5.40% 11-01-96
Total General Obligation Revenue Bonds
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Changes in General Long-term Liabilities. During the year ended December 31, 2000, the following changes
occurred in liabilities reported in the genera110ng-term debt account group.
Balance Balance
January 1, December 31,
2000 Additions Reductions 2000
G.O. Improvement Bonds $ 410,000 $ - $ 130,000 $ 280,000
Tax Increment Revenue Bonds 285,000 285,000
Capital Lease payable 255,795 21,969 233,826
Sick leave/severance payable 43.785 1 1.421 55,206
Total $ 994.580 $ 1 1.421 $ 436.969 $ 569.032
The annual service requirements to maturity for all bonds and leases outstanding at December 31,2000 are as
follows:
G.O. Capital G.O.
Year Ending Improvement Lease Revenue
December 31 , Bonds Pavable Bonds Total
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
2005 37,544 245,244 282,788
Thereafter 112,632 1.371.698 1.484,330
Total 298,825 300,352 2,710,089 3,309,266
Less interest (18,825 ) (66,526) (610.089) (695.440)
Principal $ 280.000 $ 233.826 $ 2.100,000 $ 2,613,826
Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of
long-term debt totaled $303,857 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-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
E.
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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
Equipment Replacement
Street Reconstruction
MSA Construction
Trail Capital Improvements
Total Unreserved - Designated
F.
Contributed Capital
The changes in the government's contributed capital accounts for its proprietary funds were as follows:
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Enterprise
Sources Water Sewer Total
Balance, January 1, 2000 $ 4,884,058 $ 4,657,264 $ 9,541,322
Assessments levied for improvements 40.000 40,000
Balance, December 31, 2000 $ 4.924.058 $ 4.657.264 $ 9.581.322
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Purpose Amount
Prepaid items $ 35,500
Debt service on bonds issued 181,511
Debt service on bonds issued 113,094
Debt service on bonds issued 9,252
$ 339.357
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Working capital
$ 1,713,680
52,328
159,525
1,174,122
145,873
8,638
$ 3.254.166
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Capital Improvements
Equipment
Streets
Street Construction
Trail Improvements
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-19-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE
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A.
Plan Description
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All full-time and certain part-time employees of the City are covered by defmed benefit plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established
and administered in accordance with Minnesota Statutes, Chapters 353 and 356.
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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.
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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.
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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.
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There are different types of annuities available to members upon retirement. A normal annuity is a lifetime
annuity that ceases upon the death of the retiree -- no survivor annuity is payable. There are also various types
of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because
the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination
of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are
available at any time to members who leave public service, but before retirement benefits begin.
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The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them
yet are bound by the provisions in effect at the time they last terminated their public service.
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PERA issues a publicly available fmancial report that includes fmancial 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.
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B. Funding Policy
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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, 2000,1999 and 1998 were $44,029, $42,492,
and $33,296, respectively. The Cities contributions were equal to the contractually required contributions for
each year as set by state statute.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
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
1999 by the City of Shorewood is 18 %. The most recent year of audited information is 1999. The fmancial
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, 2000.
South Lake Minnetonka Public Safety Department has accounts payable and accrued payroll and compensated
absences in the General Fund of$139,738. There is no other current or long-term debt outstanding as ofDecernber 31,
1999. The following is a summary of the Department's balance sheet as of December 31, 1999 and the statement of
revenue, expenditures and changes in fund balance for the General Fund for the year ended December 31, 1999.
SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1999
General Totals
General Fixed (Memorandum Only)
Fund Assets 1999 1998
Total assets $ 323.355 $ 426.102 $ 749.457 $ 701.400
Liabilities $ 139,738 $ - $ 139,738 $ 154,265
Fund equity 183.617 426.1 02 609.719 547.135
Total liabilities and fund equity $ 323.355 $ 426.102 $ 749.457 $ 701.400
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, 1999
(With comparative actual amounts for the year ended December 31, 1998)
1999 1998
Variance -
Favorable
Budget Actual (Unfavorable ) Actual
Total revenue $ 1,266,581 $ 1,314,361 $ 47,780 $ 1,281,632
Total expenditures 1.159.081 1.294.971 (135.890 ) 1.298.313
Excess of revenue over (under)
expenditures $ 107.500 19,390 $ (88.110) (16,681 )
Fund balance, January 1 164.227 180.908
Fund balance, December 31 $ 183.617 $ 164.227
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
Note 5: JOINT VENTURES - CONTINUED
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B.
South Lake Minnetonka Senior Community Center
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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
of the South Lake Minnetonka Senior Community Center. The term of the lease shall be 25 years at a rental rate
of $1 per year. The Friends of the South Lake Minnetonka Senior Community Center are required to pay all
operating costs of the Senior Center. The member cities were responsible for a proportionate share of the
building construction. Shorewood financed their share with a lease purchase obligation. The amount of the
capital lease is $233,826 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.
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Note 6: OTHER INFORMATION
A.
Risk Management
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The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City
obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a
risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to
LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining
through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance
event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years.
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Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs).
The City's management is not aware of any incurred but not reported claims.
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B. Segment Information for Enterprise Funds
Stormwater
Management
Water Sewer Recycling Utility LiQuor Total
Operating revenue $ 465,548 $ 709,258 $ 98,722 $ 52,340 $ 644,310 $ 1,970,178
Depreciation expense 172,032 198,975 1,094 6,609 378,710
Operating income 106,820 106,063 11,303 41,660 112,688 378,534
Operating transfers from
other funds 10,000 10,000
Operating transfers to
other funds (5,000) (86,875 ) (10,000) (101,875)
Net income 160,256 170,213 13,739 69,115 124,883 538,256
Fixed asset additions 214,037 75,002 576,748 11,058 876,845
Net working capital 1,878,441 2,559,359 55,184 (264,726) 430,633 4,658,891
Contributed capital additions 40,000 40,000
Total assets 7,542,231 5,570,413 55,217 710,996 527,552 14,406,409
Bonds Payable 2,100,000 2,100,000
Total equity 5,411,231 5,566,177 55,184 310,928 476,562 11,820,787
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-22-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2000
Note 6: OTHER INFORMATION - CONTINUED
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c.
Legal Debt Margin
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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 $680,120,900 which leaves a legal debt
margin of$13,602,418. There is no debt subject to the limit.
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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, 2000 and 1999 amounted to $169,222 and $149,822,
respectively. Future minimum lease payments for all leases are as follows:
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Note 7: OPERATING LEASES
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Year Ending
December 31.
Shorewood
Plaza
Waterford
Center Tonka Bay
2001
$ 39.900 $
49.500 $ 15.000
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The new lease for Waterford Center began January 1, 1995 and will run through December 31,2001. The Shorewood I
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: OPERATING TRANSFERS
A schedule of operating transfers follows:
Transfer Transfer
In Out
General Fund $ 28,000 $ 494,800
Capital Projects Funds
Public Facilities/Office Equipment 15,000
Park Capital Improvements 86,875
Equipment Replacement 112,800
Street Reconstruction 347,000
Trail Capital Improvement 3,000
Enterprise Funds
Stormwater Management Utility 10,000
Water Fund 5,000
Sewer Fund 86,875
Liquor 10,000
Total $ 599.675 $ 599.675
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CITY OF SHOREWOOD, MINNESOTA
THE GENERAL FUND
The General Fund is used to account for resources traditionally associated with government which are not
required legally or by sound financial management to be accounted for in other funds. It normally receives a
greater variety and number of taxes and other general revenues than any other fund. The majority of the
current day-to-day operations will be financed from this fund.
ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Due from other funds
Special assessments receivable
Delinquent
Deferred
Prepaid items
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Salaries payable
Refundable deposits payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Reserved for prepaid items
Unreserved
Designated for working capital
TOTAL FUND BALANCE
CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2000 AND 1999
TOTAL LIABILITIES AND FUND BALANCE
-24-
Exhibit A-I
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2000 1999
$ 1,906,088 $ 1,640,583
19,440 16,340
39,642 49,334
35,471 29,506
24,194
173 1,706
232 153
35,500 34,450
$ 2,036,546 $ 1,796,266
$ 109,314 $ 32,074
41,870 40,454
117,757 133,616
18,425 23,771
287,366 229,915
35,500 34,450
1,713,680 1,531,901
1,749,180 1,566,351
$ 2,036,546 $ 1,796,266
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND AC1lJAL
YEAR ENDED DECEMBER 31, 2000
(With comparative totals for the year ended December 31, 1999)
2000 1999
Variance -
Favorable
Budget Actual (Unfavorable) Actual
REVENUE
General property taxes
General property taxes $ 1,860,642 $ 1,862,568 $ 1,926 $ 1,799,020
Fiscal disparities 76,137 76,137 71,707
Total 1,936,779 1,938,705 1,926 1,870,727
Licenses and permits
Business 16,350 12,090 (4,260) 12,055
Nonbusiness 179,500 333,996 154,496 209,500
Total 195,850 346,086 150,236 221,555
Intergovernmental
Federal
CDBG 6,693
State
Property tax credits 426,898 426,898 421,282
Other 26,913 58,148 31,235 40,994
Total 453,811 485,046 31,235 468,969
Charges for services
General government 41,500 15,931 (25,569) 34,589
Parks and recreation 12,600 13,450 850 8,759
Total 54,100 29,381 (24,719) 43,348
Fines and forfeitures 95,000 76,483 (18,517) 94,115
Miscellaneous revenue
Interest on investments 100,000 142,599 42,599 52,890
Other 43,700 58,244 14,544 31,672
Total 143,700 200,843 57,143 84,562
TOTAL REVENUE 2,879,240 3,076,544 197,304 2,783,276
-25-
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, 2000
(With comparative totals for the year ended December 31, 1999) I
2000 1999
Variance - I
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES
Current I
General Government
Mayor and Council
Personal services $ 13,564 $ 13,564 $ $ 13,564 I
Supplies 1,200 684 516 1,906
Other services and charges 82,140 51,823 30,317 48,852
Total 96,904 66,071 30,833 64,322 I
Administrative I
Personal services 101,378 104,017 (2,639) 106,403
Supplies 400 400 375
Other services and charges 6,475 30,135 (23,660) 6,088 I
Total 108,253 134,152 (25,899) 112,866
Finance I
Personal services 107,303 95,777 11,526 103,196
Supplies 2,900 4,053 (1,153) 2,812
Other services and charges 8,250 3,273 4,977 8,864 I
Total 118,453 103,103 15,350 114,872
Professional services I
Personal services 83,316 75,733 7,583 73,861
Supplies 1,050 8,143 (7,093) 778
Other services and charges 162,500 237,403 (74,903) 147,653 I
Total 246,866 321,279 (74,413) 222,292
Planning and zoning I
Personal services 111,971 77,667 34,304 100,468
Supplies 400 357 43 357 I
Other services and charges 12,150 10,340 1,810 9,409
Total 124,521 88,364 36,157 110,234 I
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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, 2000
I (With comparative totals for the year ended December 31, 1999)
2000 1999
Variance -
I Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED
I Current - Continued
General Government - Continued
Municipal building
I Supplies $ 9,200 $ 7,426 $ 1,774 $ 10,071
Other services and charges 83,300 86,229 (2,929) 89,952
I Total 92,500 93,655 (1,155) 100,023
Other general government
Personal services 91,328 127,494 (36,166) 97,607
I Supplies 16,250 20,348 (4,098) 12,600
Other services and charges 14,000 30,120 (16,120) 16,036
I Total 121,578 177 ,962 (56,384) 126,243
Total General Government 909,075 984,586 (75,511) 850,852
I Public Safety
Police protection
I Supplies 600 600 401
Other services and charges 557,345 549,882 7,463 546,934
Total 557,945 549,882 8,063 547,335
I Animal control
Other services and charges 21,000 18,574 2,426 18,570
I Fire protection
Other services and charges 171,175 191,175 (20,000) 166,355
I Protective inspection
Personal services 82,040 64,444 17,596 64,543
I Supplies 450 251 199 166
Other services and charges 3,600 3,157 443 2,546
Total 86,090 67,852 18,238 67,255
I Total Public Safety 836,210 827,483 8,727 799,515
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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, 2000
(With comparative totals for the year ended December 31, 1999)
2000 1999
Variance -
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED
Current - Continued
Public Works
General maintenance
Personal services $ 188,513 $ 169,537 $ 18,976 $ 182,624
Supplies 35,700 29,655 6,045 33,454
Other services and charges 22,150 24,279 (2,129) 17,299
Total 246,363 223,471 22,892 233,377
Streets and highways
Personal services 91,927 42,150 49,777 64,843
Supplies 33,000 20,672 12,328 32,796
Other services and charges 6,100 50,280 (44,180) 6,867
Total 131,027 113,102 17,925 104,506
Snow and ice removal
Personal services 29,078 16,694 12,384 17,030
Supplies 17,500 15,416 2,084 13,009
Total 46,578 32,110 14,468 30,039
Traffic control
Supplies 4,600 3,291 1,309 5,227
Other services and charges 34,500 34,926 (426) 33,867
Total 39,100 38,217 883 39,094
Sanitation and waste removal
Personal services 625 1,725 (1,100) 456
Other services and charges 3,500 5,954 (2,454)
Total 4,125 7,679 (3,554) 456
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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, 2000
(With comparative totals for the year ended December 31, 1999)
2000 1999
Variance -
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED
Current - Continued
Public Works - Continued
Tree maintenance
Personal services $ 9,129 $ 14,238 $ (5,109) $ 5,200
Supplies 750 67 683 746
Other services and charges 12,220 6,140 6,080 10,828
Total 22,099 20,445 1,654 16,774
Total Public Works 489,292 435,024 54,268 424,246
Culture and Recreation
Personal services 90,808 98,315 (7,507) 74,905
Supplies 19,200 8,239 10,961 15,094
Other services and charges 27,930 29,337 (1,407) 24,436
Total Culture and Recreation 137,938 135,891 2,047 114,435
Total Current Expenditures 2,372,515 2,382,984 (10,469) 2,189,048
Capital Outlay
General government 400 4,496 (4,096) 775
Public works 1,975 1,891 84 1,204
Total Capital Outlay 2,375 6,387 (4,012) 1,979
Debt Service
Principal 21,970 21,970 20,665
Interest and other 15,580 15,574 6 16,879
Total Debt Service 37,550 37,544 6 37,544
TOTAL EXPENDITURES 2,412,440 2,426,915 (14,475) 2,228,571
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES 466,800 649,629 182,829 554,705
-29-
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 31,2000
(With comparative totals for the year ended December 31, 1999)
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
2000 1999
Variance -
Favorable
Budget Actual (Unfavorable) Actual
$ 28,000 $ 28,000 $ $ 46,400
(494,800) (494,800) (492,800)
(466,800) (466,800) (446,400)
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER USES
$ 182,829
$
108,305
182,829
FUND BALANCE, JANUARY 1
1,566,351
1,458,046
FUND BALANCE, DECEMBER 31
$ 1,749,180
$ 1,566,351
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
Debt service funds are used to account for the payment of interest and principal on long-term general
obligation debt other than debt issued for and serviced primarily by enterprise funds.
1993 Improvement and Refundin2 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 ill 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 31,2000
(With comparative totals for December 31, 1999)
1993 1991
Improvement Waterford Improvement
and III Tax and
Refunding Increment Refunding
ASSETS
Cash and temporary investments $ 180,508 $ 9,202 $ 112,259
Accrued interest receivable 1,003 50 631
Accormts receivable
Delinquent taxes receivable
Special assessments
Delinquent 204
Deferred 13,339 62,675
TOTAL ASSETS $ 194,850 $ 9,252 $ 175,769
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to other funds $ $ $
Deferred revenue 13,339 62,675
TOTAL LIABILITIES 13,339 62,675
FUND BALANCE
Reserved for debt service 181,511 9,252 113,094
TOTAL LIABILITIES AND FUND BALANCE $ 194,850 $ 9,252 $ 175,769
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I Exhibit B-1
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I Total
2000 1999
I $ 301,969 $ 363,923
1,684 2,752
5,000
I 5,935
204 461
I 76,014 127,381
$ 379,871 $ 505,452
I
$ $ 1,428
I 76,014 127,381
76,014 128,809
I
303,857 376,643
I $ 379,871 $ 505,452
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31,2000
(With comparative totals for the year ended December 31, 1999)
1993 1991
Improvement Waterford Improvement
and III Tax and
Refunding Increment Refunding
REVENUE
Property taxes $ $ $
Special assessments 23,241 36,857
Interest on investments 10,888 581 6,165
TOTAL REVENUE 34,129 581 43,022
EXPENDITURES
Debt Service
Principal 35,000 95,000
Interest and service charges 5,464 861 14,193
TOTAL EXPENDITURES 40,464 861 109,193
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (6,335) (280) (66,171)
FUND BALANCE, JANUARY I 187,846 9,532 179,265
FUND BALANCE, DECEMBER 31 $ 181,511 $ 9,252 $ 113,094
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I Exhibit B-2
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I Total
2000 1999
I $ $ 334,124
60,098 93,407
17,634 8,822
I 77,732 436,353
I 130,000 290,000
20,518 194,688
I 150,518 484,688
I (72,786) (48,335)
I 376,643 424,978
$ 303,857 $ 376,643
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by enterprise funds.
Public Facilities/Office Equipment Fund - This fund was established to account for capital improvement
projects for public facilities and replacement of office equipment 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.
Equipment Replacement Fund - This fund was established for the purpose of funding the replacement of
capital equipment.
Street Reconstruction Fund - This fund was established for the purpose of funding the periodic
reconstruction of City streets and roadways.
MSA Construction Fund - This fund was established to account for the accumulation of Municipal State
Aid (MSA) to fund the periodic reconstruction ofMSA designated roads.
Trail Capital Improvement Fund - This fund was established to account for trail extensions and
improvements.
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
COMBINING BALANCE SHEET
DECEMBER 31, 2000
(With comparative totals for December 31, 1999)
Public
F acili ti es/ Park
Office Capital Equipment
Equipment Improvement Replacement
ASSETS
Cash and temporary investments $ 52,842 $ 141,397 $ 158,629
Accrued interest receivable 295 896
Accounts receivable
Due from other funds
Special assessments receivable
Delinquent 191
Deferred 2,559
TOTAL ASSETS $ 55,887 $ 141,397 $ 159,525
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable $ 809 $ 36,290 $
Due to other funds 165,000
Deferred revenue 2,750
TOTAL LIABILITIES 3,559 201,290
FUND BALANCE (DEFICIT)
Unreserved
Designated 52,328 159,525
Undesignated (59,893)
TOTAL FUND BALANCE (DEFICIT) 52,328 (59,893) 159,525
TOTAL LIABILITIES AND
FUND BALANCE (DEFICIT) $ 55,887 $ 141,397 $ 159,525
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CITY OF SHOREWOOD, MINNESOTA I
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES I
IN FUND BALANCE (DEFICIT)
YEAR ENDED DECEMBER 31, 2000
(With comparative totals for the year ended December 31, 1999) I
Public
Facilities/ Park I
Office Capital Equipment
Equipment Improvement Replacement
REVENUE
Intergovernmental $ $ $ I
Special assessments 1,615
Interest on investments 3,036 8,622 12,623
Miscellaneous I
Park dedication fees 16,500
Other
TOTAL REVENUE 4,651 25,122 12,623 I
EXPENDITURES I
Capital outlay
Other services and charges 208 679 1,329
Professional services 45,370
Construction costs 8,976 322,158 27,086 I
Machinery and equipment 3,345 250,125
TOTAL EXPENDITURES 12,529 368,207 278,540 I
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (7,878) (343,085) (265,917) I
OTHER FINANCING SOURCES (USES)
Operating transfers in 15,000 86,875 112,800
Operating transfers out I
TOTAL OTHER FINANCING
SOURCES (USES) 15,000 86,875 112,800 I
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES 7,122 (256,210) (153,117) I
FUND BALANCE (DEFICIT), JANUARY 1 45,206 196,317 312,642
RESIDUAL EQUITY TRANSFER IN I
RESIDUAL EQUITY TRANSFER OUT
FUND BALANCE (DEFICIT), DECEMBER 31 $ 52,328 $ (59,893) $ 159,525
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I Exhibit C-2
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Trail Senior
I Street MSA Capital Community Total
Reconstruction Construction Improvements Center 2000 1999
I $ $ 240,909 $ $ $ 240,909 $ 40,728
1,615 1,731
53,888 4,338 5,594 88,101 48,788
I 16,500 33,000
69,497 69,497 13,407
I 53,888 245,247 5,594 69,497 416,622 137,654
I 960 81 110 4 3,371 49,113
25,028 121,628 127,600 31,571 351,197 358,189
I 43,922 116,826 23,150 542,118 301,929
253,470 26,404
I 69,910 238,535 150,860 31,575 1,150,156 735,635
I (16,022) 6,712 (145,266) 37,922 (733,534) (597,981)
347,000 561,675 511,450
I (3,000) (3,000) (66,650)
347,000 (3,000) 558,675 444,800
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I 330,978 6,712 (148,266) 37,922 (174,859) (153,181 )
843,144 139,161 156,904 (57,503) 1,635,871 1,789,052
I 11,633
(11,633)
$ 1,174,122 $ 145,873 $ 8,638 $ (19,581) $ 1,461,012 $ 1,635,871
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business, where the costs of providing services to the general public are financed primarily through
user charges.
Water Fund - This fund is used to account for the activities of the City water system and to service debt
incurred in the building of infrastructure for the system.
Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system.
Recvclim! Fund - This fund is used to account for the activities of the City recycling program.
Stormwater Manae:ement Utility Fund - This fund is used to account for the activities of the City
Stormwater Management system.
LiQuor Fund - This fund is used to account for the activities ofthe City's off-sale liquor operation. The
operation consisted of three off-sale liquor store sites in 2000. 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, 2000
(With comparative totals for December 31, 1999)
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Water Sewer I
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 1,428,248 $ 1,758,652
Accrued interest receivable 8,695 11,525 I
Delinquent taxes receivable 35
Accounts receivable 56,961 193,345
Special assessments receivable I
Delinquent 14,345 12,897
Deferred 582,579 20,993
Current portion of note receivable I
Due from other funds 565,000
Inventories, at cost
Prepaid items 2,873 1,183 I
TOTAL CURRENT ASSETS 2,093,736 2,563,595
FIXED ASSETS, AT COST 6,808,013 7,914,123 I
LESS ACCUMULATED DEPRECIATION (1,375,393) (4,907,305)
NET FIXED ASSETS 5,432,620 3,006,818
OTHER ASSETS I
Bond discount, net of amortization 15,875
TOTAL ASSETS $ 7,542,231 $ 5,570,413 I
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES I
Accounts and contracts payable $ 30,101 $ 4,209
Salaries and compensated absences payable 194 27
Due to other funds
Current portion of long-term debt 185,000 I
TOTAL CURRENT LIABILITIES 215,295 4,236
LONG-TERM LIABILITIES I
Bonds payable less current portion above 1,915,000
TOTAL LIABILITIES 2,130,295 4,236 I
FUND EQUITY
Contributed capital 4,924,058 4,657,264 I
Retained earnings
Unreserved 487,878 908,913
TOTAL FUND EQUITY 5,411,936 5,566,177 I
TOTAL LIABILITIES AND FUND EQUITY $ 7,542,231 $ 5,570,413
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Exhibit D-4 I
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2000 1999 I
$ 1,428,248 $ 1,358,372 I
8,695 9,412
35 41
56,961 46,839
14,345 19,586 I
582,579 636,434
46,500 I
2,873 3,610
2,093,736 2,120,794 I
6,808,013 6,593,976
(1,375,393) (1,203,361) I
5,432,620 5,390,615
15,875 17,278 I
$ 7,542,231 $ 7,528,687 I
$ 30,101 $ 26,824 I
194 183
185,000 190,000 I
215,295 217,007
1,915,000 2,100,000 I
2,130,295 2,317,007 I
4,924,058 4,884,058 I
487,878 327,622
5,411,936 5,211,680 I
$ 7,542,231 $ 7,528,687 I
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CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMP ARA TIVE BALANCE SHEETS
DECEMBER 31, 2000 AND 1999
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
Current portion of note receivable
Prepaid items
TOTAL CURRENT ASSETS
FIXED ASSETS, AT COST
LESS ACCUMULATED DEPRECIATION
NET FIXED ASSETS
OTHER ASSETS
Bond discount, net of amortization
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compesated absences payable
Current portion of long-term debt
TOTAL CURRENT LIABILITIES
LONG -TERM LIABILITIES
Bonds payable less current portion above
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings
Unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-S
WATER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 2000 AND 1999
2000 1999
OPERATING REVENUE
Charges for services $ 285,212 $ 238,127
Permits and connection fees 180,336 216,100
TOTAL OPERATING REVENUE 465,548 454,227
OPERATING EXPENSES
Personal services 12,595 25,206
Supplies 13,151 11,608
Repairs and maintenance 19,645 20,664
Depreciation 172,032 151,615
Professional services 10,623 19,986
Contracted services 55,327 54,299
Communication 571
Insurance 4,184 3,637
Water purchases 21,177 14,418
Utilities 47,654 48,510
Other 2,340 2,426
TOTAL OPERATING EXPENSES 358,728 352,940
OPERATING INCOME 106,820 101,287
NON OPERA TING REVENUE (EXPENSES)
General property taxes 10
Special assessments 41,410 36,602
Interest on investments 93,266 37,526
Other income 33,486 40,375
Interest expense (109,736) (117,642)
TOTAL NONOPERATING REVENUE (EXPENSES) 58,436 (3,139)
NET INCOME BEFORE TRANSFERS 165,256 98,148
OPERATING TRANSFER OUT (5,000) (2,400)
NET INCOME 160,256 95,748
RETAINED EARNINGS, JANUARY 1 327,622 231,874
RETAINED EARNINGS, DECEMBER 31 $ 487,878 $ 327,622
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CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2000 AND 1999
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 and amortization
(Increase) decrease in assets:
Accounts receivable
Prepaid items
Increase (decrease) in liabilities:
Accounts and contracts payable
Salaries and compensated absences payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH USED BY NON CAPITAL FINANCING ACTIVITIES
Operating transfers to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal payments on note receivable
Bond principal paid
Interest paid on revenue bonds
Acquisition of fixed assets
Property taxes collected
Special assessments collected
NET CASH USED BY CAPITAL AND RELATED FINANCING
ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY I
CASH AND CASH EQUIVALENTS, DECEMBER 31
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Exhibit D-6 I
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2000 1999 I
$ 106,820 $ 101,287
33,486 40,375 I
173,435 153,019
(10,122) (3,340) I
737 (695)
3,277 1,138 I
11 37
307,644 291,821 I
(5,000) (2,400) I
46,500 46,500 I
(190,000) (180,000)
(109,736) (117,642)
(214,037) (108,630) I
16 737
140,506 225,882
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(326,751) (133,153)
93,983 44,251 I
69,876 200,519 I
1,358,372 1,157,853
$ 1,428,248 $ 1,358,372 I
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 2000 AND 1999
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
Due from other funds
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
Umeserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
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Exhibit D-7
2000
1999
$ 1,758,652 $ 2,050,624
11,525 15,946
193,345 187,268
12,897 13,528
20,993 19,744
565,000
1,183 2,179
2,563,595 2,289,289
7,914,123 7,839,121
(4,907,305) (4,708,330)
3,006,818 3,130,791
$ 5,570,413 $ 5,420,080
$ 4,209 $ 24,029
27 87
4,236 24,116
4,657,264 4,657,264
908,913 738,700
5,566,177 5,395,964
$ 5,570,413 $ 5,420,080
CITY OF SHOREWOOD, MINNESOTA Exhibit D-8
SEWER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2000 AND 1999
2000 1999
OPERATING REVENUE
Charges for services $ 693,904 $ 720,446
Permits and connection fees 15,354 22,000
TOTAL OPERATING REVENUE 709,258 742,446
OPERATING EXPENSES
Personal services 18,973 14,074
Supplies 3,735 3,411
Repairs and maintenance 13,007 15,012
Depreciation 198,975 197,794
Professional services 7,962 12,064
Contracted services 44,050 31,566
Communication 137 139
Insurance 2,416 1,689
Utilities 4,855 5,402
MCES charges 306,164 334,373
Other 2,921 5,596
TOTAL OPERATING EXPENSES 603,195 621,120
OPERATING INCOME 106,063 121,326
NONOPERATING REVENUE
Interest on investments 146,025 56,991
Other income 5,000 5,032
TOTAL NONOPERATING REVENUE 151,025 62,023
NET INCOME BEFORE TRANSFERS 257,088 183,349
OPERATING TRANSFER OUT (86,875) (6,000)
NET INCOME 170,213 177,349
RETAINED EARNINGS, JANUARY 1 738,700 561,351
RETAINED EARNINGS, DECEMBER 31 $ 908,913 $ 738,700
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CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2000 AND 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net cash provided (used) by
operating activities:
Other income related to operations
Depreciation
(Increase) decrease in assets:
Accounts receivable
Special assessments receivable
Due from other funds
Prepaid items
Increase ( decrease) in liabilities:
Accounts and contracts payable
Salaries and compensated absences payable
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH USED BY NONCAPITAL FINANCING ACTIVITIES
Operating transfers to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired from developers
-50-
Exhibit D-9
2000 1999
$ 106,063 $ 121,326
5,000 5,032
198,975 197,794
(6,077) (1,615)
(618) 8,835
(565,000)
996 (926)
(19,820) 19,631
(60) (599)
(280,541 ) 349,478
(86,875) (6,000)
(75,002)
150,446 64,813
(291,972) 408,291
2,050,624 1,642,333
$ 1,758,652 $ 2,050,624
$
$ 38,798
ASSETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
TOTAL ASSETS
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2000 AND 1999
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable
RETAINED EARNINGS
Unreserved
TOTAL RETAINED EARNINGS
-51-
Exhibit D-IO I
I
2000 1999 I
$ 35,975 $ 26,317
199 244 I
15,022 13,295
468 429 I
3,553 1,160
$ 55,217 $ 41,445 I
$ 33 $ I
55,184 41,445 I
$ 55,217 $ 41,445 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-ll
RECYCLING FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2000 AND 1999
2000 1999
OPERATING REVENUE
Charges for services $ 98,722 $ 89,563
OPERATING EXPENSES
Personal services 543
Supplies 1,840 143
Contracted service 85,440 83,607
Other 139 23
TOTAL OPERATING EXPENSES 87,419 84,316
OPERATING INCOME 11,303 5,247
NONOPERATING REVENUE
Interest on investments 2,436 966
NET INCOME 13,739 6,213
RETAINED EARNINGS, JANUARY 1 41,445 35,232
RETAINED EARNINGS, DECEMBER 31 $ 55,184 $ 41,445
-52-
CITY OF SHOREWOOD, MINNESOTA Exhibit D-12
RECYCLING FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2000 AND 1999
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 11,303 $ 5,247
Adjustments to reconcile operating income to net cash provided
by operating activities:
(Increase) decrease in assets:
Accounts receivable (1,727) 2,176
Special assessments receivable (2,432) 338
Increase (decrease) in liabilities:
Accounts payable 33
NET CASH PROVIDED BY OPERATING ACTIVITIES 7,177 7,761
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2,481 1,053
INCREASE IN CASH AND CASH EQUIVALENTS 9,658 8,814
CASH AND CASH EQUIVALENTS, JANUARY 1 26,317 17,503
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 35,975 $ 26,317
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-13
STORMW ATER MANAGEMENT UTILITY FUND
COMP ARA TIVE BALANCE SHEETS
DECEMBER 31,2000 AND 1999
2000 1999
ASSETS
CURRENT ASSETS
Cash and investments $ 118,043 $ 228,296
Accrued interest receivable 1,731 1,887
Accounts receivable 13,959 12,425
Special assessments receivable
Delinquent 510 504
Deferred 1,099 1,069
TOTAL CURRENT ASSETS 135,342 244,181
FIXED ASSETS, AT COST 576,748
LESS ACCUMULATED DEPRECIATION (1,094)
NET FIXED ASSETS 575,654
TOTAL ASSETS $ 71 0,996 $ 244,181
LIABILITIES AND RETAINED EARNINGS
LIABILITIES
Accounts payable $ 68 $ 2,418
Due to other funds 400,000
TOTAL CURRENT LIABILITIES 400,068 2,418
RETAINED EARNINGS
Unreserved 310,928 241,763
TOTAL LIABILITIES AND RETAINED EARNINGS $ 710,996 $ 244,181
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CITY OF SHOREWOOD, MINNESOTA ExhibitD-14
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 2000 AND 1999
2000 1999
OPERATING REVENUE
Charges for services $ 52,340 $ 46,032
OPERATING EXPENSES
Personal services 2,341 1,519
Supplies 642 1,034
Depreciation 1,094
Professional services 3,985 8,997
Contracted services 2,618 27,490
TOTAL OPERATING EXPENSES 10,680 39,040
OPERATING INCOME 41,660 6,992
NONOPERATING REVENUE
Interest on investments 17,505 5,237
INCOME BEFORE OPERATING TRANSFERS 59,165 12,229
OPERATING TRANSFER FROM OTHER FUNDS 10,000 10,000
NET INCOME 69,165 22,229
RETAINED EARNINGS, JANUARY 1 241,763 219,534
RETAINED EARNINGS, DECEMBER 31 $ 310,928 $ 241,763
-55-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-15
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2000 AND 1999
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 41,660 $ 6,992
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 1,094
(Increase) decrease in assets:
Accounts receivable (1,534) 8,617
Special assessments receivable (36) 680
Increase (decrease) in liabilities:
Accounts payable (2,350) (4,471)
Salaries payable (55)
Due to other funds 400,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 438,834 11,763
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds 10,000 10,000
CASH FLOWS FROM CAP IT AL AND RELATED FINANCING ACTIVITIES
Acquisition of fIxed assets (576,748)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 17,661 7,129
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (110,253) 28,892
CASH AND CASH EQUIVALENTS, JANUARY 1 228,296 199,404
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 118,043 $ 228,296
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2000 AND 1999
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
Umeserved
TOTAL LIABILITIES AND RETAINED EARNINGS
-57-
Exhibit D-16 I
I
2000 1999 I
$ 152,512 $ 190,320 I
1,983 2,123
317,115 257,966
10,013 9,235 I
481,623 459,644
113,546 102,488 I
(67,617) (61,008)
45,929 41,480 I
$ 527,552 $ 501,124 I
$ 33,111 $ 136,748 I
17,879 12,697
50,990 149,445 I
476,562 351,679 I
$ 527,552 $ 501,124
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CITY OF SHOREWOOD, MINNESOTA ExhibitD-17
LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2000 AND 1999
2000
OPERATING REVENUE
Sales
Less cost of sales
$ 2,532,379
(1,888,069)
TOTAL OPERATING REVENUE
644,310
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional services
Contracted services
Insurance
Utilities
Rent
Advertising
Other
259,077
14,854
6,609
3,879
2,116
11,836
22,522
169,222
8,986
32,521
531,622
112,688
22,983
(788)
22,195
134,883
(10,000)
124,883
351,679
$ 476,562
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other income (expense)
TOTAL NONOPERATING REVENUE (EXPENSES)
INCOME BEFORE TRANSFERS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
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1999
$ 2,320,165
(1,837,914)
482,251
211,786
8,086
9,489
4,129
2,270
15,193
22,479
149,822
7,983
42,178
473,415
8,836
7,773
7,143
14,916
23,752
23,752
327,927
$ 351,679
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-18
LIQUOR FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2000 AND 1999
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 112,688 $ 8,836
Adjustments to reconcile operating income to net cash provided (used) by
operating activities:
Other income (expense) related to operations (788) 7,143
Depreciation 6,609 9,489
(Increase) decrease in assets:
Inventory (59,149) 78,094
Prepaid items (778) 4,131
Increase (decrease) in liabilities:
Accounts and contracts payable (103,637) 26,361
Salaries and compensated absences payable 5,182 3,216
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (39,873) 137,270
CASH USED BY NONCAPTIAL FINANCING ACTIVITIES
Operating transfers to other funds (10,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets (11,058)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 23,123 8,459
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (37,808) 145,729
CASH AND CASH EQUIVALENTS, JANUARY 1 190,320 44,591
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 152,512 $ 190,320
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING BALANCE SHEETS
DECEMBER 31, 2000 AND 1999
ASSETS
CURRENT ASSETS
Cash and temporary investments (deficit)
Accrued interest receivable
Inventories, at cost
Prepaid items
TOTAL CURRENT ASSETS
FIXED ASSETS, AT COST
LESS ACCUMULATED DEPRECIATION
NET FIXED ASSETS
TOTAL ASSETS
LIABILITIES AND RETAINED EARNINGS (DEFICIT)
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
TOTAL LIABILITIES
RETAINED EARNINGS (DEFICIT)
Umeserved
TOTAL LIABILITIES AND
RETAINED EARNINGS (DEFICIT)
-60-
Tonka Bay
2000 1999
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$ 115,600 $ 110,693
637 836
82,186 62,858
4,335 3,284
202,758 177,671
12,715 3,750
(1,260) (711)
11,455 3,039
$ 214,213 $ 180,710
$ 17,744
5,725
$ 39,179
3,836
23,469
43,015
190,744
137,695
$ 214,213
$ 180,710
I Exhibit D-19
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I Waterford Center Shorewood Plaza Totals
2000 1999 2000 1999 2000 1999
I $ (208,442) $ (149,719) $ 245,354 $ 229,346 $ 152,512 $ 190,320
1,346 1,287 1,983 2,123
I 102,362 91,180 132,567 103,928 317,115 257,966
2,830 2,648 2,848 3,303 10,013 9,235
I (103,250) (55,891) 382,115 337,864 481,623 459,644
77,449 76,403 23,382 22,335 113,546 102,488
I (44,227) (38,411) (22,130) (21,886) (67,617) (61,008)
33,222 37,992 1,252 449 45,929 41,480
I $ (70,028) $ (17,899) $ 383,367 $ 338,313 $ 527,552 $ 501,124
I $ 5,502 $ 36,114 $ 9,865 $ 61,455 $ 33,111 $ 136,748
7,012 5,271 5,142 3,590 17,879 12,697
I 12,514 41,385 15,007 65,045 50,990 149,445
I (82,542) (59,284) 368,360 273,268 476,562 351,679
I $ (70,028) $ (17,899) $ 383,367 $ 338,313 $ 527,552 $ 501,124
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CITY OF SHOREWOOD, MINNESOTA I
LIQUOR FUND
COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT) I
YEARS ENDED DECEMBER 31,2000 AND 1999
Tonka Bay I
2000 1999
OPERATING REVENUE
Sales $ 727,990 $ 638,083 I
Less cost of goods sold (537,925) (515,601)
GROSS PROFIT 190,065 122,482 I
OPERATING EXPENSES
Personal services 85,655 72,849 I
Supplies 4,707 1,568
Depreciation 549 250
Professional services 1,795 1,439 I
Contracted services 982 1,118
Insurance 4,752 4,837
Utilities 6,949 6,322 I
Rent 23,427 19,830
Advertising 2,812 1,132
Other 8,680 8,802
TOTAL OPERATING EXPENSES 140,308 118,147 I
OPERATING INCOME (LOSS) 49,757 4,335 I
NONOPERATING REVENUE (EXPENSES)
Interest on investments 7,687 3,217 I
Other income (expense) 605 1,506
TOTAL NONOPERATING REVENUE I
(EXPENSES) 8,292 4,723
INCOME (LOSS) BEFORE TRANSFERS 58,049 9,058 I
OPERATING TRANSFERS TO OTHER FUNDS (5,000)
NET INCOME (LOSS) 53,049 9,058 I
RETAINED EARNINGS (DEFICIT), JANUARY 1 137,695 128,637 I
RETAINED EARNINGS (DEFICIT), DECEMBER 31 $ 190,744 $ 137,695
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I Exhibit D-20
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I Waterford Center Shorewood Plaza Totals
2000 1999 2000 1999 2000 1999
I $ 710,433 $ 703,264 $ 1,093,956 $ 978,818 $ 2,532,379 $ 2,320,165
(539,260) ( 530,085) (810,884) (792,228) (1,888,069) (1,837,914)
I 171,173 173,179 283,072 186,590 644,310 482,251
I 72,186 63,699 101,236 75,238 259,077 211,786
4,020 1,762 6,127 4,756 14,854 8,086
5,816 7,874 244 1,365 6,609 9,489
I 1,042 1,665 1,042 1,025 3,879 4,129
660 396 474 756 2,116 2,270
3,213 4,602 3,871 5,754 11,836 15,193
7,579 7,880 7,994 8,277 22,522 22,479
I 85,021 84,205 60,774 45,787 169,222 149,822
2,891 3,216 3,283 3,635 8,986 7,983
11 ,092 12,843 12,749 20,533 32,521 42,178
I 193,520 188,142 197,794 167,126 531,622 473,415
I (22,347) (14,963) 85,278 19,464 112,688 8,836
I 15,296 4,556 22,983 7,773
(911 ) 908 (482) 4,729 (788) 7,143
I (911 ) 908 14,814 9,285 22,195 14,916
I (23,258) (14,055) 100,092 28,749 134,883 23,752
(5,000) (10,000)
I (23,258) (14,055) 95,092 28,749 124,883 23,752
I (59,284) (45,229) 273,268 244,519 351,679 327,927
$ (82,542) $ (59,284) $ 368,360 $ 273,268 $ 476,562 $ 351,679
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBnITNG SCHEDULES OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2000 AND 1999
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 USED BY NONCAPITAL FINANCING ACTIVITIES
Operating transfers to other fimds
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of fixed assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS (DEFICIT), JANUARY 1
CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31
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Tonka Bay I
2000 1999
$ 49,757 $ 4,335 I
605 1,506 I
549 250
(19,328) 12,183 I
(1,051) 191
(21,435) 8,303 I
1,889 1,493
10,986 28,261 I
(5,000) I
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(8,965)
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7,886 3,386
4,907 31,647 I
110,693 79,046 I
$ 115,600 $ 110,693
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I Exhibit D-21
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I Waterford Center Shorewood Plaza Totals
2000 1999 2000 1999 2000 1999
I $ (22,347) $ (14,963) $ 85,278 $ 19,464 $ 112,688 $ 8,836
I (911 ) 908 (482) 4,729 (788) 7,143
5,816 7,874 244 1,365 6,609 9,489
I (11,182) 14,540 (28,639) 51,371 (59,149) 78,094
(182) 2,445 455 1,495 (778) 4,131
I (30,612) 5,107 (51,590) 12,951 (103,637) 26,361
1,741 1,174 1,552 549 5,182 3,216
I (57,677) 17,085 6,818 91,924 (39,873) 137,270
I (5,000) (10,000)
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(1,046) (1,047) (11,058)
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15,237 5,073 23,123 8,459
I (58,723) 17,085 16,008 96,997 (37,808) 145,729
I (149,719) (166,804) 229,346 132,349 190,320 44,591
$ (208,442) $ (149,719) $ 245,354 $ 229,346 $ 152,512 $ 190,320
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets of a governmental jurisdiction which are not accounted for in an
enterprise fund. To be classified as a fixed asset in this category, a specific piece of property must meet
three attributes:
1. Tangible nature
2. A life longer than the current fiscal year
3. A significant value
CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31, 2000 AND 1999
2000
GENERAL FIXED ASSETS
Land
Buildings and structures
Improvements other than buildings
Furniture and equipment
$ 456,826
1,731,011
1,361,488
1,533,964
TOTAL GENERAL FIXED ASSETS
$ 5,083,289
INVESTMENT IN GENERAL FIXED ASSETS
General fund
Capital projects funds
$ 1,192,915
3,890,374
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
$ 5,083,289
-66-
Exhibit E-l
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1999
$ 456,826
1,353,826
1,363,488
1,295,872
$ 4,470,012
$ 1,201,453
3,268,559
$ 4,470,012
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31, 2000
Exhibit E-2
Buildings Improvements Furniture
and other than and
Total Land Structures Buildings Equipment
FUNCTION
General government $ 716,802 $ $ 320,299 $ 161,504 $ 234,999
Public works 2,556,748 153,500 919,581 184,702 1,298,965
Culture and recreation 1,809,739 303,326 491,131 1,015,282
TOTAL GENERAL
FIXED ASSETS $ 5,083,289 $ 456,826 $ 1,731,011 $ 1,361,488 $ 1,533,964
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31, 2000
Exhibit E-3
General General
Fixed Assets Fixed Assets
January 1 Additions Deductions December 31
General government $ 714,018 $ 17,709 $ 14,925 $ 716,802
Public works 2,312,463 252,558 8,273 2,556,748
Culture and recreation 1,443,531 368,208 2,000 1,809,739
TOTAL GENERAL FIXED ASSETS $ 4,470,012 $ 638,475 $ 25,198 $ 5,083,289
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
General obligation bonds and other forms of long-term debt supported by general revenues are obligations of
a governmental unit as a whole and not its individual constituent funds. The amount of outstanding long-
term indebtedness which is backed by the full faith and credit of the government (excluding enterprise fund
debt) is recorded and accounted for in a separate self-balancing account group titled the "General Long-
Term Debt Account Group". Also, this debt group includes certain liabilities not expected to be liquidated
with expendable available financial resources.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 31,2000 AND 1999
Exhibit F-l
2000 1999
AMOUNT AVAILABLE FOR DEBT SERVICE
Debt service funds $ 303,857 $ 376,643
AMOUNTS TO BE PROVIDED
Future tax levies, assessments and tax increments 265,175 617,937
TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED $ 569,032 $ 994,580
GENERAL LONG-TERM DEBT PAYABLE
Compensated absences payable $ 55,206 $ 43,785
Capita11ease payable 233,826 255,795
General obligation improvement bonds 280,000 410,000
Tax increment revenue bonds 285,000
TOTAL GENERAL LONG-TERM DEBT PAYABLE $ 569,032 $ 994,580
-69-
Final
Interest Issue Maturity
Rates Date Date
5.60-5.85 11-01-91 2-01-02
4.00-4.45 12-01-93 2-01-04
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31,2000
GENERAL OBLIGATION IMPROVEMENT BONDS
G.O. Improvement Bonds of 1991
G.O. Improvement Bonds of 1993
TOTAL
GENERAL OBLIGATION REVENUE BONDS
G.O. Water Revenue Bonds
G.O. Water Revenue Bonds
4.45-4.75
4.45-5.40
11-01-95
11-01-96
2-01-11
2-01-12
TOTAL REVENUE BONDS
TOTAL ALL BONDS
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS
DECEMBER 31,2000
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
TOTAL
-72-
Total Bonds
Prll1cipal Interest
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310,000
300,000
205,000
210,000
180,000
190,000
185,000
185,000
185,000
190,000
180,000
60,000
$ 2,380,000
111,515
96,553
84,334
74,570
65,244
56,240
46,945
37,603
28,040
18,115
8,135
1,620
$ 628,914
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Exhibit F-3
G.O. Improvement Bonds G.O. Revenue Bonds
Principal Interest Principal Interest
125,000 11,776 185,000 99,739
115,000 5,139 185,000 91,414
20,000 1,430 185,000 82,904
20,000 480 190,000 74,090
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
$ 280,000 $ 18,825 $ 2,100,000 $ 610,089
-73-
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CITY OF SHOREWOOD, MINNESOTA
SECTION III
STATISTICAL SECTION
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CITY OF SHOREWOOD, MINNESOTA Table 1
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Total General Public Public Culture and Misc/ Debt
Year Expenditures Government Safety Works Recreation Transfers Service
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
2000 2,921,715 989,082 827,483 436,915 135,891 494,800 37,544
-74-
CITY OF SHOREWOOD, MINNESOTA Table 2
GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE
LAST TEN FISCAL YEARS
Total General Licenses
Fiscal General Fund Property and Inter- Misc/
Year Revenues Taxes Permits Governmental Fines Transfers
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
2000 3,104,544 1,938,705 346,086 485,046 76,483 258,224
-75-
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CITY OF SHOREWOOD, MINNESOTA Table 3
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1) Percentage
Collection Percentage Collection of Total
Fiscal Total of Current of Levy of Prior Total Collections
Year Levy Year's Levv Collected Year's Levy Collections to Levy
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 99.18 22,439 1,867,630 100.38
2000 1,935,779 1,922,709 99.32 15,035 1,937,744 100.10
(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.
-76-
CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALUATION, TAX LEVIES AND MILL RATES
(shown by year of tax collectibility)
2000 1999 1998 1997 1996
(2) (2)
Tax capacity $ 10,346,255 $ 9,663,252 $ 9,897,574 $ 9,901,879 $ 9,115,960
Contribution to fiscal disparities pool (201,693 ) (203,942 ) (214,901 ) (202,668 ) (178,279 )
Receivable from fiscal disparities pool 379,095 342,621 337,116 350,823 332,110
Tax increment (312,066) (319.186) (294.512 ) (166,094 )
Taxable valuation/Total tax capacity $ 10.523.657 $ 9.489.865 $ 9.700.603 $ 9.755.522 $ 9.103.697
Tax levies
General $ 1,935,799 $ 1,860,507 $ 1,778,585 $ 1,703,016 $ 1,573,930
Debt service 24,783
Total $ 1.935.799 $ 1.860.507 $ 1.778.585 $ 1.703.016 $ 1.598.713
Tax capacity rate
General 18.340 19.573 18.317 17.479 17.252
Debt service .179
Total 18.340 19.573 18.317 17.479 17.431
(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 [mance 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.
-77-
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF TAX CAPACITY IN 1991-2000)
Year (1)
Taxes School District Watershed District
Payable City County No. 276 No. 277 No.3 No.4
1991 20.454 30.114 56.401 46.828 .131 .449
1992 20.164 34.327 64.530 56.643 .142 .490
1993 20.797 35.839 75.275 60.069 .668 .781
1994 19.904 37.441 77.323 67.785 .334 .707
1995 18.471 37.454 76.139 66.441 2.332 .762
1996 17.431 37.270 76.340 62.418 (2) 1.533 .864
1997 17.4 79 35.515 78.420 52.223 1.319 .860
1998 18.317 38.386 76.408 59.701 .660 .843
1999 19.573 40.994 69.423 67.286 .825 .880
2000 18.340 39.655 59.565 57.711 .525 .866
(1) Includes vocational school
(2) Includes market value levy of .077.
-79-
Miscellaneous
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6.855
5.481
5.532
5.724
5.847
6.390
6.149
6.973
8.043
7.916
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Storm
Sewer
District
No.2
17.792
13.437
15.495
15.353
13.956
Totals
School District No. 276
Watershed
District No.4
Storm Sewer
District No.2
Watershed
District
No.3
113.955
124.649
138.111
140.726
140.243
138.964
138.882
140.744
138.858
126.001
Watershed
District
No.4
114.273
124.997
138.224
141.099
138.673
138.295
138.423
140.927
138.913
126.342
114.273
142.789
151.661
156.594
154.026
152.251
138.423
140.927
138.913
126.342
-80-
Table 5
School
Dist. No. 277,
Watershed
District
No.3
104.382
116.762
122.905
131.188
130.545
125.042
112.685
124.037
136.721
124.147
Taxpaver
Two S Properties
Minnetonka Country Club
First State Bank of Excelsior
Waterford Partners LLC
Shorewood Village Shopping
Center, Inc.
Thomas J. & Cynthia J. Redmond
NSP Property Tax Department
Second Half LLC
Lawrence Reid
Steven R. Litman Trustee
Total
CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL TAXPAYERS
DECEMBER 31, 2000
Type of Business
Residential/Commercial
Commercial
Commercial
Commercial
Commercial
Residential
Utility
Commercial
Residential
Residential
-81-
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1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
CITY OF SHOREWOOD, MINNESOTA Table 7
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1) Percentage
Collection Percentage Collection of Total
Total of Current of Levy of Prior Total Collections
Levy Year's Levy Collected Year's Levy Collections to Levy
$ 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
160,137 155,491 97.10 11,813 167,304 104.48
Fiscal
Year
-82-
CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31,2000
Table 8
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Market Value
$ 680.120.900
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Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
$ 13,602,418
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Total Bonded Debt
Less, (Note B)
Improvement Bonds
General Obligation Revenue Bonds
Total Debt Applicable to Debt Limit
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$ 2,380,000
(280,000 )
(2,100,000)
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$ 13.602.418
Legal Debt Margin
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Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75, no municipality, except a school district or I
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."
Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid)
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"Subdivision 2. Not included in net debt of municipality for purpose of any statutory or charter limitation. Obligations issued
here under may be authorized by resolution of the governing body without authorization by the electors, and shall not be included
in the net debt of the municipality for the purpose of any statutory or charter limitation on indebtedness."
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M.S.A. Section 475.51 (Definitions:)
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"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the
following:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied
upon property specially benefited thereby, including those which are general obligations of the municipality issuing them,
if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments.
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Warrants or orders having no definite or fixed maturity.
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Obligations payable wholly from the income from revenue-producing conveniences.
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Obligations issued to create or maintain a permanent improvement revolving fund.
Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or
power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be
derived.
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Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other
than those deductible under this subdivision.
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All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in
computing the net debt of the municipality."
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After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24.
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CITY OF SHOREWOOD, MINNESOTA Table 9
RATIO OF NET BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Ratio of Net
Bonded Debt Net
Less Amount to Assessed Bonded
Fiscal Estimated (1) Gross Reserved for Net Values/ Debt
Year Population Tax Capacity Bonded Debt Debt Service Bonded Debt Tax Capacity Per Capita
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 .2583:1 318.23
1996 6794 9,103,697 3,602,500 503,635 3,098,865 .3404: I 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
2000 7400 10,218,346 2,380,000 303,858 2,076,142 .2032: 1 280.55
(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.
-84-
CITY OF SHOREWOOD, MINNESOTA Table 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES*
Percent of
Debt Service
Total Total General to General
Year Principal Interest Debt Service Expenditures * Expenditures
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(2) 120,862 801,862 2,536,943 31.61
1995 231,000 99,823 330,823 2,326,231 14.22
1996 767,000(3) 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
2000 130,000 18,588 148,588 2,921,715 5.09
(1)
(2)
(3)
Excludes G.O. Bonds reported in Enterprise Funds.
Principal included bonds called in 1994
Principal included bonds called in 1996
Includes General Fund only
*
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31,2000
Table 11
Direct Debt*
City of Shorewood
Amount
Gross Bonded Percentage of Net Debt
Debt Used for Applicable Applicable
Net Debt Calc Net Debt District to District
$ 2.380.000 $ 2.076.142 100.00% $ 2,076.142
$ 219,170,000 $ 216,028,146 1.02 $ 2,203,487
15,920,000 12,026,336 1.35 162,356
52,535,000 31,322,080 23.30 7,298,045
11,550,000 9,963,640 2.03 202,262
146,040,645 115,003,645 .52 598,019
$ 445.215,645 $ 384.343.847 2.72% $ 10.464.169
$ 447.595.645 $ 386.419.984 3.25% $ 12.540.311
Overlapping Debt
Hennepin County
Hennepin Suburban Park District
School District #276
School District #277
Metropolitan Council
Total Overlapping Debt
Total Direct and Overlapping Debt
*
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.
-86-
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net Ratio of Net
Fiscal Gross (1) Revenue Debt Service Revenue to
Year Revenue Expenses Available Principal Interest Total Debt Service
1991 $ 172,569 $ 126,614 $ 45,955 $ 10,000 $ 6,493 $ 16,493 2.786 to 1
1992 199,891 125,714 74,177 10,000 5,823 15,823 4.688 to 1
1993 172,624 139,490 33,134 10,000 4,860 14,860 2.230 to 1
1994 262,892 159,179 103,713 15,000 4,035 19,035 5.449 to 1
1995 198,566 166,970 31,596 15,000 3,486 18,486 1.710 to 1
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 .4257 to 1
1999 454,227 201,325 252,902 180,000 117,642 297,642 .8497 to 1
2000 465,548 186,696 278,852 190,000 109,736 299,736 .9303 to 1
(1)
Excluding depreciation and interest on bonds
-87-
CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(1)
Connnercial
Construction
Fiscal
Year
Value
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
$
960,000
2,030,000
1,350,000
695,000
1,317,000
257,000
Sources
(1) City Planning and Inspection Department
(2) County Assessor's Office
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(1)
Residential Construction
Number
of Units Value
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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
173 12,151,100
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(2) Property Value
Commercial Residential Total
$ 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
17,487,100 668,078,300 685,565,400
Table 13
-89-
I
I
Year of incorporation
Form of government
I
Fiscal year begins
Area of city
I
Population
2000 Census
1990 Census
1980 Census
1970 Census
I
I
Miles of streets and alleys
City streets
Municipal state aid streets
County roads
State highway
I
I
Sewer
Lift stations
Sewer rates - residential
Miles of sewer lines
I
Number of street lights
I
Building permits issued in 2000
Number of permits
Value
CITY OF SHOREWOOD, MINNESOTA
MISCELLANEOUS STATISTICS
DECEMBER 31,2000
Table 14
1956
Council-Administrator
Adopted May 14, 1956
January 1
6.0 Square Miles
7,400
5,917
4,646
4,223
41
9.8
1.7
2.7
14
$60.00/quarter
56.2
177
862
$26,038,718
I
Fire protection: Contracted services with Mound and Excelsior
Police protection: Contracted services with South Lake Minnetonka Police Department
I
Parks
Number
Acres
I
Water
Number of connections
Average daily consumption
Miles of watermain
Daily capacity
Number of fire hydrants
Water rate per thousand gallons
I
I
Employees
Regular
Part-time/seasonal
Total
I
I
Elections
Registered voters last election
Number of votes cast last election
Percentage of registered voters voting
I
I
5
95.8
1,151
403,000 gallons
15.2
4,680,000 gallons
165
$1.50/1000 gallons
21
31
52
4,981
4,521
90.7%
-90-