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2000 - Comp. Annual Financial Report I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT for the YEAR ENDED DECEMBER 31,2000 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 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 I I 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 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA TABLE 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 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION I INTRODUCTORY SECTION I I I I I I I CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31,2000 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 I I Appointed Officials Craig Dawson Bonnie Burton City Administrator Finance Director/Treasurer I I I I I I I I I I -1- - - - Personnel Accounting Payroll Investments Utility Billing Accts. Payable Accts. Receivable SpeCial Assessments Budgeting MIS Purchasi - - - 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 - - - - - - - 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 - _.- - - - 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 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (952) 474-0128 · www.cLshorewood.mn.us . cityhall@cLshorewood.mn.us 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. ft I ~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. I I MAJOR INITIATIVES I FINANCIAL AND MANAGEMENT EMPHASIS I 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, I I 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. I 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. I 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. I Emphasis on System Improvements I The City continues to improve its communications through the Communications Plan adopted in 1997. The Communications Program includes: I · 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. I II I I I I I I I I I I I I I I I I I I I I 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. IV I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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. V 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, ~~ Bonnie Burton Finance Director/Treasurer VI I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shorewood, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 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:::~ I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION II FINANCIAL SECTION I I I I I I I I I I I I I I I I I I I 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the accompanying general purpose fmancial statements of the City of Shorewood, Minnesota, as of and for the year ended December 31, 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 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the financial statements are intended to provide an overview and broad perspective of the City's financial position and operations. These statements present a summary set of information needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in financial planning. The following general purpose financial statements are presented: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual- General Fund Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types CITY OF SHOREWOOD , MINNESOTA 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. -3- I I I I I I I I I I I I I I I I I I I I Exhibit 1 I 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 I -4- I 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) I 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 I 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 I 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 I -6- I $ 182,829 I I I I I I I I I I I I I I I I I I I 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. -7- I I I I I I I 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 I I I I TOTAL OPERATING EXPENSES OPERATING INCOME I I I I I I I I 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 I 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) I 46,500 (190,000) I (109,736) (876,845) 16 I 140,506 (989,559) I 287,694 (360,499) I 3,853,929 I $ 3,493,430 I I I 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. I I Note 1: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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 I I Enterprise funds are used to account for those operations that are fmanced and operated in a manner similar to I private business or where the Council has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Account Groups. The general fixed assets account group is used to account for fixed assets not accounted for I in proprietary funds. The general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Assets, Liabilities and Equity I 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. I 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. I Property Taxes I 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. I 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. I I Special Assessments I 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. I 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." I I 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. I I I -11- I I I Note 1: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 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 5 -10 40 Compensated Absences Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available fmancial resources is reported as an expenditures and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available 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. -13- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED I I 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. I Capital Projects Funds Park Capital Improvement Senior Community Center $ 59,893 19,581 I Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS I A. Deposits and Investments I Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed on the fmancial statements as "cash and temporary investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: I 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). I I I 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. I Investments Investments are categorized into these three categories of credit risk: I 1. 2. Insured or registered, or securities held by the City or its agent in the City's name. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. I I I 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. 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. I I I -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 -15- I I I I I I I I I I I I I I I I I I I I I Note 3: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 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 -17- I I I I I I I I I I I I I I I I I I I I I Note 3: I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 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- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED E. I 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: I 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 I 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 I I I I Working capital $ 1,713,680 52,328 159,525 1,174,122 145,873 8,638 $ 3.254.166 I Capital Improvements Equipment Streets Street Construction Trail Improvements I I I I I I I I I -19- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE I A. Plan Description I 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. I 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. I 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. I 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. I I I 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. I I 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. I 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. I B. Funding Policy I 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. I I I -20- I 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 -21- I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 Note 5: JOINT VENTURES - CONTINUED I B. South Lake Minnetonka Senior Community Center I 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. I I I Note 6: OTHER INFORMATION A. Risk Management I 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. I I Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. I I 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 I I I I I I I -22- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 Note 6: OTHER INFORMATION - CONTINUED I I c. Legal Debt Margin I 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. I 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: I Note 7: OPERATING LEASES I Year Ending December 31. Shorewood Plaza Waterford Center Tonka Bay 2001 $ 39.900 $ 49.500 $ 15.000 I 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 I I I I I I I I I -23- I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA 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 I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND 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 I I -26- I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND I STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 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 I I -27- I 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 -28- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 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 -30- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS Debt service funds are used to account for the payment of interest and principal on long-term general obligation debt other than debt issued for and serviced primarily by enterprise funds. 1993 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 -31- I I I I I I I I I I I I I I I I I I I I Exhibit B-1 I I I Total 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 I I I I I I I -32- I 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 -33- I I I I I I I I I I I I I I I I I I I I Exhibit B-2 I I I Total 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 I I I I I I I I -34- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Public Facilities/Office 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 I I I I I I I I I I I I I I I I -35- I I I 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 I I I -37- I I Exhibit C-2 I I 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 I 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 I I I -38- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business, where the costs of providing services to the general public are financed primarily through user charges. Water Fund - This fund is used to account for the activities of the City water system and to service debt incurred in 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) I 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 I -39- I -45- Exhibit D-4 I I 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 I I 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 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-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 -46- 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 -47- Exhibit D-6 I I 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 I (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 I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA 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 -48- 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 -49- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA 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 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-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 -53- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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 -54- 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- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-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 -56- 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 I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA 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 -58- 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 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-18 LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 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 -59- 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 I I I I I I I I I I I I I I I I I I I $ 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 I 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 I I I I I I -61- I 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 I I I -62- I I Exhibit D-20 I 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 I I I -63- I 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 -64- I I 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 I (8,965) I 7,886 3,386 4,907 31,647 I 110,693 79,046 I $ 115,600 $ 110,693 I I I I I I I Exhibit D-21 I 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) I (1,046) (1,047) (11,058) I 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 I I I I I -65- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP 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 I I I I I I I I I I I I I I I I I I I 1999 $ 456,826 1,353,826 1,363,488 1,295,872 $ 4,470,012 $ 1,201,453 3,268,559 $ 4,470,012 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND 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 -67- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION YEAR ENDED DECEMBER 31, 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 -68- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP General obligation bonds and other forms of long-term debt supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. The amount of 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. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT DECEMBER 31,2000 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 I I I I I I I I I I I I I I I I I I I 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 -70- I - r--. I M 0 0 0 0 0 0 0 I 0 01) r... .S 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .... 0 ""d o~ o~ o~ o~ o~ O' o' :c N a --- 0'\ 0'\ 00 - 0'\ 0 00 :a - ..... - N '<:t~ \0 - M ~ M '" N~ N~ --- ~ ~ N - 0 &'7 &'7 0 0 0 0 0 0 0 '"0 0 0 0 0 0 0 0 '" 8 0 0 0 0 0 0 0 ""d o' ",' .n o' o~ o' .n $::l <I) r--. M 0 - r--. 00 00 0 <I) r--. N o. '" - \0 \O~ o:l ""d ~ - - &'7 &'7 '"0 0 0 0 0 0 0 0 ""d 0 0 0 0 0 0 0 <I) <I) 0 0 o~ 0 0 0 o~ .!:l ;j o' ",' '" o~ o~ o' '" .... '" 0 '" \0 N 00 N \0 00 \0 ..s ...... 0'\ M ~ 0'\. 00 r--. 0 ""d - - N~ '<:t~ ;j a --< &'7 &'7 - - - - - - - - - - - - - - - - - - - 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 I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I I I I I I I I I I I 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- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION III STATISTICAL SECTION I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 1 GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION LAST TEN FISCAL YEARS Fiscal Total General Public Public Culture and Misc/ Debt Year Expenditures Government Safety Works Recreation Transfers Service 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- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 3 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Percentage Collection Percentage Collection of Total Fiscal Total of Current of Levy of Prior Total Collections Year Levy Year's 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- I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I I I I I I I I I I I 6.855 5.481 5.532 5.724 5.847 6.390 6.149 6.973 8.043 7.916 I I I I I I I I I I I I I I I I I I I 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- I I I I I I I I I I I I I I I I I I I 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 I Market Value $ 680.120.900 I Debt Limit: 2.0% of market value (Note A) Amount of Debt Applicable to Debt Limit: $ 13,602,418 I Total Bonded Debt Less, (Note B) Improvement Bonds General Obligation Revenue Bonds Total Debt Applicable to Debt Limit I $ 2,380,000 (280,000 ) (2,100,000) I $ 13.602.418 Legal Debt Margin I 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) I "Subdivision 2. Not included in net debt of municipality for purpose of any statutory or charter limitation. Obligations issued here under may be authorized by resolution of the governing body without authorization by the electors, and shall not be included in the net debt of the municipality for the purpose of any statutory or charter limitation on indebtedness." I M.S.A. Section 475.51 (Definitions:) I "Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the following: (1) (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. I Warrants or orders having no definite or fixed maturity. I Obligations payable wholly from the income from revenue-producing conveniences. I 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. I Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. I All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in computing the net debt of the municipality." I * I After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24. -83- I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 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 * -85- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 12 REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Net Ratio of Net Fiscal Gross (1) Revenue Debt Service Revenue to Year Revenue Expenses Available Principal Interest Total Debt Service 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 -88- (1) Residential Construction Number of Units Value I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I I I I I I I I I I I (2) Property Value Commercial Residential Total $ 11,997,100 $ 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-