2001 - Comp. Annual Financial Report
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CITY OF SHOREWOOD
SHOREWOOD,NITNNESOTA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
YEAR ENDED
DECEMBER 31, 2001
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CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31,2001
CRAIG DAWSON, CITY ADMINISTRATOR
REPORT PREPARED BY
BONNIE BURTON, FINANCE DIRECTOR/TREASURER
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2001
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I. INTRODUCTORY SECTION
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Elected and Appointed Officials
Organizational Chart
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
II. FINANCIAL SECTION
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Independent Auditor's Report
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General Pm:pose Financial Statements
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Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit)-
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
Notes to Financial Statements
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Combining and Individual Fund and Account Group Financial Statements and Schedules
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General Fund
Comparative Balance Sheets
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual
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Debt Service Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and Changes in Fund Balance
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Capital Projects Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit)
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Enterprise Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenses and Changes in Retained Earnings
Combining Statement of Cash Flows
Water Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
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Sewer Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
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Recycling Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
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Exhibit
Page No.
1
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2
3-4
2
5-6
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7
4
5
8
9
10 - 22
A-I 23
A-2 24 - 28
B-1 29 - 30
B-2 31 - 32
C-l 33 - 34
C-2 35 - 36
D-l 37 - 38
D-2 39 - 40
D-3 41 - 42
D-4 43
D-5 44
D-6 45
D-7 46
D-8 47
D-9 48
D-I0 49
D-ll 50
D-12 51
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2001
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Stormwater Management Utility Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
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Liquor Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Combining Balance Sheets
Combining Schedules of Revenue, Expenses and Changes in Retained Earnings
(Deficit)
Combining Schedules of Cash Flows
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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
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General Long-term Debt Account Group
Comparative Statements of General Long-term Debt
Schedule of Bonds Payable
Schedule of Debt Service Requirements
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III. STATISTICAL SECTION (UNAUDITED)
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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
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Exhibit
D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-21
E-l
E-2
E-3
F-l
F-2
F-3
Table
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Page No.
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58 - 59
60 - 61
62 - 63
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68 - 69
70
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74 - 75
76 - 77
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CITY OF SHOREWOOD, MINNESOTA
SECTION I
INTRODUCTORY SECTION
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CITY OF SHOREWOOD, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2001
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Elected Officials
Term
Expires
Woody Love
Christine Lizee
Scott Zerby
John Garfunkel
Laura Turgeon
Mayor
Council Member
Council Member
Council Member
Council Member
2002
2002
2002
2004
2004
Appointed Officials
Craig Dawson
Bonnie Burton
City Administrator
Finance Directorffreasurer
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FINANCE
Personnel
Accounting
Payroll
Investments
Utility Billing
AccIs. Payable
Accts. Receivable
Special Assessments
Budgeting
MIS
Purchasln
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Off.Sale Retail
CONTRACTED SERVICES
ASSESSOR----liENNEPIN COUNTY
RECYCLING---EZ RECYCliNG
unLmEs IIUNITECH
ANIMAL CONTROL~ITY OF ORONO
ANIMAL IMPOUND--PAWS. CLAWS & HOOVES
FIRE (1sIands)_OUND
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CITY OF SHOREWOOD ORGANIZATION CHART
SHOREWOOD RESIDENTS
CITY COUNCIL
EXECUTIVE SECRETARYI
DEPUTY CLERK
RECEPTlONISTI
PARK SECRETARY
COMMUNICATIONS
TECHNICIAN
General Government
Licensing
Elections
Records
Legal Publications
Public Information
Recreation Programs
Cable TV Franchise
ADVISORY BOARDS
PARK COMMISSION
PLANNING COMMISSION
LAND CONSERVATION &
ENVIRONMENT
COMMITTEE (LCEC)
CITY ATTORNEY
PLANNING &
ZONING
Planning
Zoning Administration
Property Records
Inspeclion
Updated 5130102
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JOINT POWERS ORGANIZATIONS
POLICE - SLMPD
FIRE - EXCELSIOR FIRE DISTRICT
LMCC - Lake Minnetonka
Communications Commission
LMCD - Lake Mlnnetonka Conservation
District
P.W. DIRECTOR!
CITY ENGINEER
LIGHT EQUIPMENT
OPERATORS
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)
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ENGINEERING
TECHNICIAN
Engineering Services
Project Mgmt
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MAJOR INITIATIVES
FINANCIAL AND MANAGEMENT EMPHASIS
Emphasis on Governance
The City Council, in its leadership role, has effectively established a focus for city government in Shorewood. The Council has
committed to a strong set of values by which decisions are to be made. It has adopted a Statement of Purpose and has
established overall goals and expectations for the City. It has identified issues facing the City and prioritized them so that the
staff can efficiently and effectively allocate time and resources.
The City Council's calendar consists of three phases. The first phase is planning, which includes review of the previous year's
work plan, the City's Comprehensive Plan, and the statements of Purpose and Values. It also includes identification and
prioritization of goals and objectives for the next twelve months.
The second phase is that of Programming and Capital Finance Planning. Each year the five-year Capital Improvement Program
is reviewed and updated based upon priorities established in phase one. Any changes to the Comprehensive Plan are made
based upon the phase one decisions.
The third phase is budgeting. The operating budget is established based on decisions made in the first two phases. A budget
format is used 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.
Emphasis on System Improvements
The City continues to improve its communications through the Communications Program. This program includes: city
newsletter distributed monthly; emphasis on informal information meetings; city web page; 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.
Emphasis on Public Improvements and Programs
The City Council established a Land Conservation and Environment Committee in 1999. The committee was created for a 3-
year period to study and to make recommendations regarding ongoing land conservation and environmental policies for the
City. Significant progress was made toward completing updates to the Comprehensive Plan in 2001 and a Stormwater
Management Plan. Both are to be completed in 2002.
The Park Commission continued its process for considering trails in Shorewood, as part of the Commission's work on the Park
Master Plan. The trail process involves citizens in the decision process to determine when and if trails are appropriate along
streets and roadways. The Park Master Plan process is a detailed review and analysis of the amenities and attributes of each of
the Shorewood City Parks.
In addition, the City began a comprehensive community visioning project, with written and telephone surveys, and a series of
focus group meetings and visioning work-sessions to identify cooperative opportunities with other Lake Minnetonka
communities. The visioning process in 2001 included public open meetings and citizen involvement in the planning and
visioning process. The Visioning Project will be completed in 2002.
Emphasis on Efficiently, Effectively Meeting Service Needs
Shorewood is committed to working cooperatively with area governmental jurisdictions to carefully consider optional methods
to effectively deliver public services as efficiently as possible. The City has various contractual arrangements with other
governmental jurisdictions and with private enterprise for providing many of these services. 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 to address mutual problems.
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The City, along with the Cities of Excelsior, Deephaven, Greenwood and Tonka Bay, established the Excelsior Fire District in
2000, 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. To
this end, the Excelsior Fire District purchased a 7-acre tract of land in Shorewood in 2001. The construction of a combined
police and fire campus that will serve the Lake Minnetonka Area cities is currently in the design phase and is scheduled for
construction during 2002-2003. A fire station to serve the east side of the Excelsior Fire District is planned for construction in
2003.
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: 1) the cost of a control should not exceed the benefits;
2) the valuation of costs and benefits requires estimates and judgments by management. As part of the City's annual audit, the
internal control system is evaluated to the extent necessary for audit purposes and changes are recommended when needed.
BUDGETING CONTROLS
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget
approved by the City Council. The annual appropriated budget also includes the General Fund activities. The legal level of
budgetary control is established at the department level, but management control is exercised at the line item level.
The City continues meeting its responsibility for sound financial management, as demonstrated by the statements and schedules
included in the financial section of this report
GENERAL GOVERNMENT FUNCTIONS
The following schedule presents a summary of general fund revenues for the fiscal year ended December 31, 2001, and the
amount of increases or decreases in relation to the prior year's revenues.
Increase
Percent of (D ecrease)
Revenues and Other Financing Sources Amount Total from 2000
General Property Taxes $ 2,206,525 65.91% $ 267,820
Licenses and Permits 349,515 10.44% 3,429
Intergovernmental 497,269 14.85% 12,223
Charges for Services 42,222 1.26% 12,841
Fines and Forfeitures 61,243 1.83% (15,240)
Interest on Investments 122,231 3.65% (20,368)
Miscellaneous 38,771 1.16% (19,473)
Operating Transfers In 30,000 0.90% 2,000
Total $ 3,347,776 100.00% $ 243,232
Overall revenues increased by $243,232 from 2000 to 2001. The largest increase in revenue was property tax revenues. In
addition, building permit revenue continued to increase due to new subdivisions in the city and related brisk building activity.
Interest revenue decreased in 2001 due to a general reduction in market interest rates. In addition, fair value adjustments were
made to the city's investments in accordance with GASB 31. Intergovernmental revenue was on target in 2001, but fines and
miscellaneous revenue decreased.
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The following table presents a summary of general fund expenditures for the fiscal year ended December 31, 2001 and the
amount of increases or decreases in relation to the prior year's expenditures.
Expenditures and Other Uses
Amount
Percent of
total
Increase
(decrease)
from 2000
Current:
General Government
Public Safety
Public Works
Parks and Recreation
Capital Outlay:
Operating Transfers:
$ 981,146 31.92% $ (3,440)
893,070 29.05% 65,587
487,092 15.85% 52,068
126,139 4.10% (9,752)
52,440 1.71 % 8,509
534,000 17.37% 39,200
$ 3,073,887 100.00% $ 152,172
Total
Overall expenditures were somewhat higher in 2001 from 2000. Public Safety expenditures for police and fire services
increased in 2001 primarily due to personnel adjustments and consultants' fees related to the establishment of a joint powers
fire district. General Government and Parks and Recreation spending was somewhat less for the year 2001.
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 somewhat from 2000. Budgeted transfers for capital improvement purposes
increased during 2001 from $494,800 to $534,000.
GENERAL FUND BALANCE
The General Fund balance as of December 31, 2001 was $2,023,069 and has $117,760 reserved for 2002 expenditures. The
fund balance increased by $273,889 during 2001, or 15.6%. The remaining fund balance is designated for working capital
requirements through the first six months of the year. The fund balance now stands at 65.8% of the current year budget. The
policy of the City is to maintain a fund balance at 40% to 60% 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 2001 are summarized as follows:
Operating Operating Operating
revenues expenses income (loss)
Water $398,555 $209,332 $189,223
Sewer 680,534 474,300 206,235
Recycling 77 ,600 104,151 (26,551)
Stormwater 48,425 47,472 953
Liquor
Tonka Bay 181,578 161,502 17,354
Waterford Center 212,373 198,128 10,815
Shorewood Plaza 273,579 212,562 57,139
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Generally accepted accounting principles require the depreciation of contributed assets, which results in net losses in some
cases. However, past and present City financial practice does not include the recovery 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. It is still important to
review the operations annually to ensure rates are sufficient to cover increased costs.
The Liquor Fund again experienced a substantial net operating profit il1 2001. The addition of a full-time liquor operations
manager in 2000 and tighter controls within the operation accounts for continued profitability. The Liquor Committee and city
management continues to explore ways to increase profit margins in the future.
DEBT ADMINISTRATION
As of December 31, 2001, the City's debt outstanding totaled $2,280,468. Of this total, $155,000 is 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 finance the City's portion of construction of the Southshore Senior Community Center in the amount
of $210,468.
The City issued $2,780,000 in general obligation water revenue bonds in 1995 and 1996 to finance water system extensions and
improvements. Total outstanding general obligation water revenue bonds at year-end are $1,915,000. The bonds will be repaid
from special assessments on affected properties and from Water Fund revenues.
The City's bond rating is "AI" on general obligation bond issues, as rated by Moody's Investor Service. Moody's cited the
following reasons for this rating: the development and implementation of a five-year capital improvement plan; low outstanding
debt; sound financial management; and anticipated maintenance of low debt ratios. This rating was established in 1993,
therefore the city may wish to consider a review of the rating prior to its next General Obligation issue.
CASH MANAGEMENT
The City of Shorewood subscribes to the "pooled cash" concept of investing which means that all funds with cash balances
participate in an investment pool. This permits some funds to be overdrawn and other funds to show positive cash balances,
with the City overall maintaining a positive cash balance. This pooled cash concept provides for investing of greater amounts
of money at more favorable rates. Interest earnings are then allocated to the participating funds. During 2001, the City of
Shorewood earned $421,541 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. The LMCIT
reserves and rates are reviewed annually by an actuary to help assure that the program remains financially strong.
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OTHERINFO~ATION
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 fmancial statements and schedules is included in the
fmancial 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 fmancial report for the fiscal year
ended December 31, 2000. In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual fmancial 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 fmancial
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, and express appreciation to the fmance department staff and the City's
independent auditor, without whose assistance and cooperation the timely preparation of the Comprehensive Annual Financial
Report would not have been possible. Credit must also be given to the Mayor and City Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the City of Shorewood's fmances.
Respectfully submitted,
Bonnie Burton
Finance Director/Treasurer
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Shorewood,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2000
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.
cf~w~
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CITY OF SHOREWOOD, MINNESOTA
SECTION II
FINANCIAL SECTION
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7241 Ohms Lane
Suite 200
Edina, MN 55439
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Shorewood, Minnesota
We have audited the accompanying general purpose financial statements of the City of Shorewood, Minnesota, as of and for
the year ended December 31, 2001, as listed in the table of contents. These general purpose financial statements are the
responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall general
purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial
position of the City as of December 31, 2001, and the results of its operations and the cash flows of its proprietary fund type
for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 12, 2002 on our
consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of
laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole.
The combining, individual fund and account group financial statements, schedules and statistical information listed in the
table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose
financial statements of the City. Such information has been subjected to the auditing procedures applied in the audit of the
general purpose financial statements and, in our opinion, except for the statistical data section marked "unaudited" on which
we express no opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a
whole.
April 12, 2002
Minneapolis, Minnesota
~J t.'dL f ~J LL.f
ABDO, EICK & MEYERS, LLP
Certified Public Accountants
952.835.9090 Fax 952.835.3261
www.aemcpas.com
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CITY OF SHOREWOOD, MINNESOTA
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose financial statements and notes to the financial statements are intended to provide an
overview and broad perspective of the City's financial position and operations. These statements present a
summary set of information needed to control and analyze current operations to determine compliance with
legal and budgetary limitations and to assist in financial planning.
The following general purpose financial statements are presented:
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All
Governmental Fund Types
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund
Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary
Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
CITY OF SHOREWOOD , MINNESOTA I
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS I
DECEMBER 31,2001
(With comparative totals for December 31, 2000)
Governmental Fund Types I
Special Debt Capital I
General Revenue Service Projects
ASSETS AND OTHER DEBITS
ASSETS I
Cash and temporary investments $ 1,919,732 $ $ 230,876 $ 2,663,770
Receivables
Accrued interest 5,718 545 7,897
Delinquent taxes 38,540 I
Accounts 16,897 265,649
Special assessments 118 32,458 1,279
Note 245,000 I
Due from other funds 3,342 83,211
Inventories, at cost
Prepaid items 117,760
Bond discount, net I
Fixed assets, net
OTHER DEBITS
Amount available for debt retirement I
Amounts to be provided for debt retirement
TOTAL ASSETS AND OTHER DEBITS $ 2,102,107 $ 245,000 $ 263,879 $ 3,021,806
LIABILITIES, EQUITY (DEFICIT) AND OTHER CREDITS I
LIABILITIES
Accounts and contracts payable $ 41,580 $ $ $ 219,930 I
Salaries and compensated absences payable 15,232
Due to other funds 253,342 240,250
Accrued interest payable
Escrow deposits payable I
Deferred revenue 22,226 32,458 1,279
General obligation bonds payable
General obligation revenue bonds payable I
Capital lease payable
TOTAL LIABILITIES 79,038 253,342 32,458 461,459
EQUITY (DEFICIT) AND OTHER CREDITS I
Investment in general fixed assets
Contributed capital
Retained earnings I
Unreserved
Fund balance (deficit)
Reserved 117,760 231,421 I
Unreserved
Designated 1,905,309 2,703,545
Undesignated (8,342) (143,198)
TOTAL EQUITY (DEFICIT) AND OTHER CREDITS 2,023,069 (8,342) 231,421 2,560,347 I
TOTAL LIABILITIES, EQUITY (DEFICIT) AND I
OTHER CREDITS $ 2,102,107 $ 245,000 $ 263,879 $ 3,021,806
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA I
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) I
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 2001
(With comparative totals for the year ended December 31, 2000) I
Special Debt Capital I
General Revenue Service Projects
REVENUE
Taxes $ 2,206,525 $ $ $ I
Licenses and permits 349,515
Intergovernmental 497,269 2,606,774
Charges for services 42,222 I
Fines and forfeitures 61,243
Special assessments 50,791 1,694
Interest on investments 122,231 14 14,603 88,652
Miscellaneous 38,771 32,465 I
TOTAL REVENUE 3,317,776 14 65,394 2,729,585
EXPENDITURES I
Current
General government 981,146 8,356 I
Public safety 893,070
Public works 487,092
Culture and recreation 126,139 I
Capital outlay 14,896 2,149,250
Debt service
Principal 23,358 125,000 I
Interest and service charges 14,186 12,830
TOTAL EXPENDITURES 2,539,887 8,356 137,830 2,149,250
EXCESS (DEFICIENCY) OF REVENUE OVER I
EXPENDITURES 777,889 (8,342) (72,436) 580,335
OTHER FINANCING SOURCES (USES) I
Operating transfers in 30,000 524,000
Operating transfers out (534,000) (5,000) I
TOTAL OTHER FINANCING SOURCES (USES) (504,000) 519,000
EXCESS (DEFICIENCY) OF REVENUE AND OTHER I
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES 273,889 (8,342) (72,436) 1,099,335
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FUND BALANCE, JANUARY 1 1,749,180 303,857 1,461,012
FUND BALANCE (DEFICIT), DECEMBER 31 $ 2,023,069 $ (8,342) $ 231,421 $ 2,560,347 I
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See Notes to Financial Statements.
-5- I
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Exhibit 2
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I Totals
(Memorandum Only)
I 2001 2000
I $ 2,206,525 $ 1,938,705
349,515 346,086
3,104,043 725,955
I 42,222 29,381
61,243 76,483
52,485 61,713
I 225,500 248,334
71,236 144,241
6,112,769 3,570,898
I
I 989,502 984,586
893,070 827,483
487,092 435,024
I 126,139 135,891
2,164,146 1,156,543
I 148,358 151,970
27,016 36,092
4,835,323 3,727,589
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1,277,446 (156,691)
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554,000 589,675
I (539,000) (497,800)
15,000 91,875
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1,292,446 (64,816)
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3,514,049 3,578,865
I $ 4,806,495 $ 3,514,049
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CITY OF SHOREWOOD, MINNESOTA Exhibit 3
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31,2001 I
Variance -
Favorable
Budget Actual (Unfavorable) I
REVENUE
Taxes $ 2,208,574 $ 2,206,525 $ (2,049)
Licenses and permits 141,200 349,515 208,315 I
Intergovernmental 453,916 497,269 43,353
Charges for services 54,100 42,222 (11,878)
Fines and forfeitures 95,000 61,243 (33,757) I
Interest on investments 100,000 122,231 22,231
Miscellaneous 45,000 38,771 (6,229)
TOTAL REVENUE 3,097,790 3,317,776 219,986 I
EXPENDITURES
Current I
General government 940,133 981,146 (41,013)
Public safety 928,509 893,070 35,439
Public works 530,379 487,092 43,287 I
Culture and recreation 151,744 126,139 25,605
Capital outlay 5,481 14,896 (9,415)
Debt service 37,544 37,544 I
TOTAL EXPENDITURES
2,593,790 2,539,887 53,903
EXCESS OF REVENUE OVER EXPENDITURES 504,000 777,889 273,889 I
OTHER FINANCING SOURCES (USES) I
Operating transfers in 30,000 30,000
Operating transfers out (534,000) (534,000)
TOTAL OTHER FINANCING SOURCES (USES) (504,000) (504,000) I
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND I
OTHER FINANCING USES $ 273,889 $ 273,889
FUND BALANCE, JANUARY 1 1,749,180 I
FUND BALANCE, DECEMBER 31 $ 2,023,069
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See Notes to Financial Statements.
-7- I
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CITY OF SHOREWOOD, MINNESOTA Exhibit 4
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 2001
OPERATING REVENUE
Sales
Less cost of sales
Enterprise
$ 2,629,590
(1,962,100)
667,490
1,112,272
92,842
1,872,604
330,684
29,386
30,368
394,087
47,070
223,455
6,457
17,628
12,735
79,985
389,538
167,433
10,374
57,386
1,796,586
76,018
18
40,348
196,041
234,850
(147,753)
323,504
399,522
10,000
(25,000)
384,522
2,239,465
$ 2,623,987
GROSS PROFIT
Charges for services
Permits and connection fees
TOTAL OPERATING REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Disposal charges
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUE (EXPENSE)
General property taxes
Special assessments
Interest on investments
Other income
Interest expense
TOTAL NONOPERATING REVENUE (EXPENSE)
INCOME BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS IN
OPERATING TRANSFERS OUT
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Shorewood operates under the "Optional Plan A" form of government as defined in the State of
Minnesota Statutes. Under this plan, the government of the City is directed by a Council composed of an
elected Mayor and four elected Council Members. The Council exercises legislative authority and determines
all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs
relating to the City. The City has considered all potential units for which it is financially accountable, and other
organizations for which the nature and significance of their relationship with the City are such that exclusion
would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting
Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These
criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the
primary government to impose its will on that organization or (2) the potential for the organization to provide
specific benefits to, or impose specific financial burdens on the primary government. Blended component units,
although legally separate entities are, in substance, part of the City's operations and so data from these units are
combined with data of the primary government. The blended component unit has a December 31 year end. The
City has the following component unit.
Blended Component Units
The Economic Development Authority (EDA) of the City was created pursuant to Minnesota Statutes 469.090
through 469.108 to carry out economic and industrial development and redevelopment consistent with policies
established by the Council. It is comprised of the members of the City Council. The EDA activities are blended
and reported in a separate special revenue fund. Separate financial statements are not issued for this component
unit.
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates
funds according to their intended purpose and is used to aid management in demonstrating compliance with
finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with
legal and managerial requirements. Account groups are a reporting device to account for certain assets and
liabilities of the governmental funds not recorded directly in those funds.
The City has the following fund types and account groups:
Governmentalfunds are used to account for the City's general government activities. Governmental fund types
use the flow of current financial resources measurement focus and the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when
they are "measurable and available"). "Measurable" means the amount of the transaction can be determined,
and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the
current period. The City considers all revenues available if they are collected within 60 days after year end.
Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general
long-term debt which is recognized when due, and certain compensated absences and claims and judgments
which are recognized when the obligations are expected to be liquidated with expendable available financial
resources.
Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other
receipts and taxes become measurable and available when cash is received by the government and are
recognized as revenue at that time.
The preparation of general purpose financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
-10-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. CONTINUED
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual
criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have
been incurred and all other grant requirements have been met.
Governmental funds include the following fund types:
The general fund is the City's primary operating fund. It accounts for all financial resources of the City, except
those required to be accounted for in another fund.
The special revenue funds account for revenue sources that are legally restricted to expenditures for specified
purposes (not including major capital projects).
The debt service funds account for the servicing of general long-term debt not being financed by proprietary
funds.
The capital projects funds account for the acquisition 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. In accordance with the provisions of the GASB Statement No. 20, Accounting and
Financial Reporting for Proprietary Funds and other Governmental Entities that use Proprietary Fund Account,
the City applies all applicable GASB pronouncements plus all Financial Accounting Standards Board (FASB)
Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research Bulletins
issued on or before November 30, 1989, except for those that conflict with or contradict GASB
pronouncements. The City has elected not to apply FASB Statements and Interpretations issued after November
30, 1989. Proprietary funds include the following fund type:
Enterprise funds are used to account for those operations that are financed and operated in a manner similar to
private business or where the Council has decided that the determination of revenues earned, costs incurred
and/or net income is necessary for management accountability.
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of
others.
The agency fund is custodial in nature and does not present results of operations or have a measurement focus.
Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for
escrow deposits of developers and builders in conjunction with the anticipated cost of improvements that will be
necessary as a result of the development.
Account Groups. The general fixed assets account group is used to account for fixed assets not accounted for
in proprietary funds. The general long-term debt account group is used to account for general long-term debt
and certain other liabilities that are not specific liabilities of proprietary funds.
C. Assets, Liabilities and Equity
Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by
each of the funds.
State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, repurchase agreements and shares of investment companies registered under the Federal Investment
Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its
agencies.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. CONTINUED
Investments for the City are valued at fair value. The Minnesota Municipal Money Market Fund investment
pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the
same as the fair value of the pool shares.
Property Taxes
The City Council annually adopts a tax levy in December and certifies it to the County for collection in the
following year. The County is responsible for collecting all property taxes for the City. These taxes attach an
enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two
installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during
January, July, and December each year.
Taxes payable on homestead property, as defined by State statutes, are partially reduced by a homestead and
agricultural credit aid. The credit is paid to the City by the State of Minnesota in lieu of taxes levied against
homestead property. The State remits this credit in two equal installments in July and December each year.
This aid was eliminated with legislation passed during the 2001 Minnesota legislative session.
Delinquent taxes receivable include the past six years'uncollected taxes. Delinquent taxes have been offset by a
deferred revenue liability for delinquent taxes not received within 60 days after year end.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners.
These assessments are recorded as receivables upon certification to the County. Special assessments in
governmental funds 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 special assessments are recorded as contributed capital in the year of certification.
Receivables and Payables
Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of
the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds."
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 financial resources.
Inventories and Prepaid Items/Deferred Charges
The inventories are stated at average cost, which approximates market using the first-in, first-out (FIFO)
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items or deferred charges.
Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group
at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their
estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated.
Interest incurred during construction is not capitalized on general fixed assets.
Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only to the City) are not capitalized.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'
lives are not included in the general fixed assets group or capitalized in the proprietary funds.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. CONTINUED
Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and I'
equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date
of donation.
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Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are I
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 I
over the following estimated useful lives:
Assets
Years
Furniture and equipment
Collection and distribution system
5 - 10
40
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Compensated Absences
Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available financial
resources is reported as an expenditure 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, 2001 the amount
recorded in general long-term debt was $55,988. No expenditure is reported for these amounts. Proprietary
fund types record the liability as the benefits accrue to employees. This amount was $9,526 at year-end.
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Long-term Obligations
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The City reports long-term debt of governmental funds at face value in the general long-term debt account
group. Certain other governmental fund obligations not expected to be financed with current available financial
resources are also reported in the general long-term debt account group. Long-term debt and other obligations
financed by proprietary funds are reported as liabilities in the appropriate funds.
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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.
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Fund Equity
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Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific
purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund
balance represent tentative management plans that are subject to change. The proprietary fund's contributed
capital represents equity acquired through capital grants and capital contributions from developers, customers or
other funds.
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Memorandum Only - Total Columns
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Total columns on the general purpose financial statements are captioned as "memorandum only" because they
do not represent consolidated financial information and are presented only to facilitate financial analysis. The
columns do not present information that reflects financial position, results of operations or cash flows in
accordance with accounting principles generally accepted in the United States of America. Interfund
eliminations have not been made in the aggregation of this data.
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Comparative DataJReclassifications
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Comparative total data for the prior year have been presented in the selected sections of the accompanying
financial statements in order to provide an understanding of changes in the City's financial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.
Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America for the General fund. All annual appropriations lapse at fiscal year end. The City does not
use encumbrance accounting.
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 15th, the proposed budget is presented to the Council for
review. The Council holds public hearings and a final budget is prepared and adopted in early December.
The appropriated budget is prepared by fund, function and department. The City's department heads, with the
approval of the City Administrator, may make transfers of appropriations within a department. Transfers of
appropriations between departments require the approval of the Council. The legal level of budgetary control is
the department level. Budgeted amounts are as originally adopted.
B.
Excess of Expenditures over Appropriations
For the year ended December 31, 2001, expenditures exceeded appropriations in the following departments
within the General fund:
Department Budget Actual Excess
City clerk $ 125,109 $ 128,053 $ 2,944
Professional services 149,950 197,473 47,523
Planning and zoning 136,885 141,875 4,990
Municipal building 93,020 105,324 12,304
Fire protection 235,954 248,398 12,444
Sanitation and waste removal 4,130 7,458 3,328
Capital outlay 5,481 14,896 9,415
These over expenditures were funded with other expenditures under budget.
C.
Deficit Fund Equity
The following funds had deficit fund balances as of December 31, 2001. The deficit in these funds will be
eliminated by future revenue sources.
Fund
Amount
Special revenue
EDA Project
Capital projects
Park Capital Improvement
Trail Capital Improvements
Senior Community Center
$ 8,342
94,160
28,653
20,385
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments
Cash balances of the City's funds are combined (pooled) and invested to the extent available in various
investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed on
the financial statements as "cash and temporary investments." For purposes of identifying the risk of investing
public funds, the balances are categorized as follows:
Deposits
In accordance with Minnesota Statutes and as authorized by the Council, the City maintains deposits at those
depository banks, all of which are members of the Federal Reserve System.
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS. CONTINUED
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 11 0 percent of the deposits not covered by insurance or bonds
(140 percent in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and
certain other state or local government obligations. Minnesota Statutes require that securities pledged as
collateral be held in safekeeping by the City or in a financial institutioh other than that furnishing the collateral.
At year end, the City's carrying amount of deposits was $1,262,672 and the bank balance was $1,278,772. The
entire bank balance was covered by federal depository insurance.
Investments
Investments are categorized into these three categories of credit risk:
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.
3.
Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent
but not in the City's name.
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The City also invests in various money market accounts. The investment in the money market accounts is not I
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.
At year end, the City's investment balances were as follows:
1
Category
2
Fair
Value
3
U.S. Government Securities $ 4.183.633 $
- $
- $ 4,183,294
Investments not subject
to categorization:
Minnesota Municipal Money Market fund
Broker money market accounts
Sweep money market account
164,601
852,120
2.441.845
$ 7.641.860
Total investments
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
1,262,672
7.641.860
$ 8.906.432
Total cash and temporary investments
B.
Note Receivable
The EDA special revenue fund lent $245,000 to the Excelsior Fire District at 5 percent interest due September
2002. The City is also a member of the district.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
C. Fixed Assets
A summary of changes in general fixed assets for the year ended December 31, 2001 is as follows:
Balance Balance
Beginning End
of Year Additions Deletions of Year
Land $ 456,826 $ - $ - $ 456,826
Buildings and structures 1,731,011 1,731,011
Improvements other than buildings 1,361,488 25,279 2,831 1,383,936
Furniture and equipment 1.533.964 43.920 30.206 1.547 .678
Total $ 5.083.289 $ 69.199 $ 33.037 $ 5.119.451
The following is a summary of enterprise fund fixed assets at December 31, 2001:
Water
Stormwater
Management
Sewer Utility Liquor Total
37,827 $ - $ 127,740 $ 189,745
7 .890.977 1.054.216 15.797.516
7,928,804 1,054,216 127,740 15,987,261
(5.108.126) (6.370) (77 .279) (6.745.496 )
Furniture and equipment $ 24,178 $
Collection and
distribution system 6.852.323
Total 6,876,501
Less accumulated
depreciation 0.553.721)
Net fixed assets
$ 5.322.780 $ 2.820.678 $ 1.047.846 $
50,461 $ 9.241.765
D. Deferred Revenue
Deferred revenue at December 31, 2001 is comprised of the following:
Debt Capital
General Service Proiects Total
Delinquent taxes $ 22,108 $ - $ - $ 22,108
Special assessments
Delinquent
Deferred 118 32.458 1.279 33.855
Total $ 22.226 $ 32.458 $ 1.279 $ 55.963
E. Long-term Debt
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for both general government
and proprietary activities. The bonds are reported in the proprietary funds if they are expected to be paid from:
proprietary activities.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. General
obligation bonds currently outstanding are as follows:
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
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General Long-term Debt
General Obligation Improvement Bonds
The following bonds were issued to finance various improvements and will be repaid primarily from special I
assessments levied on the properties benefiting from the improvements. Some issues, however, are partly
financed by ad valorem tax levies. Each year the combined assessment and tax levy equals 105 percent of the
amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax or assessment I
payments.
All special assessment debt is backed by the full faith and credit of the City.
Authorized
and
Issued
11-01-91
Balance
Maturity at
Date Year End
02-01-02 $ 95,000
02-01-04 60.000
$ 155.000
Interest
Rate
Issue
Date
G.O. Improvement Bonds
of1991
G.O. Improvement Bonds
of 1993
$ 960,000 5.60-5.85%
325,000 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 financing the South
Shore Senior Center project. Title remains with the City so long as they are not in default of terms in the lease
agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been
recorded at the present value of the future minimum lease payments as of the date of its inception.
$ 311,000
05-30-96
08-01-08 $ 210.468
6.22%
Sick Leave and 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
$
55.988
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.
Authorized Balance
and Interest Issue Maturity at
Issued Rate Date Date Year End
G.O. Water Revenue Bonds
of 1995 $ 1,920,000 4.45-4.75% 11-01-95 02-01-11 $ 1,280,000
G.O. Water Revenue Bonds
of 1996 860,000 4.45-5.40 11-01-96 02-01-12 635.000
Total General Obligation Revenue Bonds $ 1.915.000
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS. CONTINUED
Changes in General Long-term Liabilities. During the year ended December 31, 2001, the following changes
occurred in liabilities reported in the general long-term debt account group.
Balance Balance
January 1, December 31,
2001 Additions Reductions 2001
G.O. Improvement Bonds $ 280,000 $ - $ 125,000 $ 155,000
Capital Lease payable 233,826 23,358 210,468
Sick leave/severance payable 55.206 782 55,988
Total $ 569.032 $ 782 $ 148.358 $ 421.456
The annual service requirements to maturity for all bonds and leases outstanding at December 31, 2001 are as
follows:
G.O. Capital G.O.
Year Ending Improvement Lease Revenue
December 31. Bonds Payable Bonds Total
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
2006 37,544 246,240 283,784
Thereafter 75.088 1.125,460 1.200.548
Total 162,049 262,808 2,425,352 2,850,209
Less interest (7,049 ) (52.340) (510,352) (569,741 )
Principal $ 155.000 $ 210.468 $ 1.915.000 $ 2.280.468
Amounts Available for Debt Retirement. Available fund balance in the debt service funds for repayment of
long-term debt totaled $231,421 at year end.
Amounts to be Provided for Debt Retirement. This represents future revenue to be generated for debt payments
and sick leave/severance benefits payable, generally including interest earnings, tax increments, scheduled tax
levies and deferred (future) special assessment levies.
F. Fund Equity Reservations and Designations
The components of fund equity are described in Note 1. Certain reservations and designations have been made
in the following funds:
Fund Balance - Reserved
Purpose
Amount
$ 117,760
170,815
51,022
9.584
$ 349.181
Governmental Funds
General Fund
Debt Service Funds
1993 Improvement and Refunding
1991 Improvement and Refunding
Waterford III Tax Increment
Prepaid items
Debt service on bonds issued
Debt service on bonds issued
Debt service on bonds issued
Total Reserved
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Fund Balance - Unreserved. Designated
Governmental Funds
General
Capital Projects
Public Facilities/Office Equipment
Equipment Replacement
Street Reconstruction
MSA Construction
Working capital
$ 1,905,309
59,277
282,265
1,543,805
818.198
$ 4.608.854
Capital Improvements
Equipment
Streets
Street Construction
Total Unreserved - Designated
G.
Contributed Capital
The changes in the City's contributed capital accounts for its enterprise funds were as follows:
Stormwater
Sources Water Sewer Management Total
Balance, January 1,2001 $ 4,924,058 $ 4,657,264 $ - $ 9,581,322
Contributions from other funds 474.768 474.768
Balance, December 31, 2001 $ 4.924.058 $ 4.657.264 $ 474.768 $ 10.056.090
Note 4:
DEFINED BENEFIT PENSION PLANS. STATEWIDE
A. Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established
and administered in accordance with Minnesota Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. ,
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon
death of eligible members. Benefits are established by State Statute, and vest after three years of credited
service. The defined retirement benefits are based on a member's highest average salary for any five successive
years of allowable service, age and years of credit at termination of service.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring
member receives the higher of a 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 10 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 10 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. A reduced retirement annuity
is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a lifetime
annuity that ceases upon the death of the retiree - - no survivor annuity is payable. There are also various types
of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because
the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination
of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are
available at any time to members who leave public service, but before retirement benefits begin.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active
plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are
bound by the provisions in effect at the time they last terminated their public service.
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PERA issues a publicly available financial report that includes financial statements and required supplementary
information for PERF and PEPFF. That report may be obtained by writing to PERA, 60 Empire Drive, Suite
200, St. Paul, Minnesota 55103-1855 or by calling 651-296-7460 or 1-800-652-9026.
B. Funding Policy
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Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are
required to contribute 8.75 percent 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. Members and employers contribution rates
for Basic and Coordinated members will increase by 0.35 percent effective January 2002. The City's
contributions to the PERF for the years ending December 31, 2001, 2000, and 1999 were $53,743, $44,029 and
$42,492, respectively. The City's contributions were equal to the contractually required contributions for each
year as set by state statute.
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Note 5:
JOINT VENTURES
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A. South Lake Minnetonka Police Department
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The City participates in a joint powers agreement with the cities of Excelsior, Greenwood and Tonka Bay, which
establishes the South Lake Minnetonka Police 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.
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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, 2001.
The most recent year of audited information is December 31, 2001.
South Lake Minnetonka Police Department has accounts payable, and accrued payroll and compensated absences
in the General fund of $142,903. There is no other current or long-term debt outstanding as of December 31,
2001. The following is a summary of the Department's balance sheet as of December 31, 2001 and the statement
of revenue, expenditures and changes in fund balance for the General Fund for the year ended December 31,
2001.
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SOUTH LAKE MINNETONKA POLICE DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 2001
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General Totals
General Fixed (Memorandum Only)
Fund Assets 2001 2000
Total assets $ 403.432 $ 454.955 $ 858.387 $ 787.942
Liabilities $ 142,903 $ - $ 142,903 $ 113,061
Fund equity 260.529 454.955 715.484 674.881
Total liabilities and fund equity $ 403.432 $ 454.955 $ 858.387 $ 787.942
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
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2001 2000
Variance -
Favorable
Budget Actual (Unfavorable ) Actual
Total revenue $ 1,372,350 $ 1,399,954 $ 27,604 $ 1,319,922
Total expenditures 1.372.350 1.386.686 (14.336 ) 1.256.278
Excess of revenue over (under)
expenditures $ 13,268 $ 13.268 63,644
Fund balance, January 1 247 .261 183.617
Fund balance, December 31 $ 260.529 $ 247.261
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Note 5: JOINT VENTURES. CONTINUED
SOUTH LAKE MINNETONKA POLICE DEPARTMENT
SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2001
(With comparative actual amounts for the year ended December 31, 2000)
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Note 6:
B. South Lake Minnetonka Senior Community Center
The City participates in a joint venture with the Cities of Excelsior, Deephaven, Greenwood and Tonka Bay,
which establishes the Southshore Senior Community Center to provide senior citizens educational and
recreational activities. Upon completion ofthe facility, the member cities will lease the Senior Center to the
Friends of the Lake Minnetonka Senior Community Center. The term of the lease shall be 25 years at a rental
rate of $1 per year. In addition to the rental rate, the Friends of the South Lake Minnetonka Senior Community
Center are required to pay all operating costs of the Senior Center. The member cities are responsible for a
proportionate share of the building construction. Shorewood financed its obligation by issuing a lease purchase
note. The remaining balance on the lease is $210,468 and is reflected in the general long-term debt account
group. This will be paid out of the Senior Center Project Debt Service Fund. In the event operating costs are
not covered by revenue, each member is responsible for their proportionate share of losses. The building costs
incurred by the City are reported in the Senior Community Center Capital Project fund and was recorded in the
general fixed asset account group. The ownership interest of the City is proportionate to each City's investment
in the Senior Center. Separate financial statements are issued for the Friends of the South Lake Minnetonka
Senior Community Center and can be obtained at City offices.
C. Excelsior Fire District
In August of 2000, the cities of Deephaven, Excelsior, Greenwood, Shorewood and Tonka Bay entered a joint
powers agreement to provide fire protection and medical response service to their residents and created an entity
called the Excelsior Fire District (the District). The City is billed for service based on a formula that determines
its share of the total expenditures. Separate financial statements can be obtained by writing to the Excelsior Fire
District, 339 3rd Street, Excelsior, MN 55331.
OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City
obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a
risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to
LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining
through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance
event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs).
The City's management is not aware of any incurred but not reported claims.
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Note 6:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
OTHER INFORMATION - CONTINUED
B. Segment Information for Enterprise Funds
The City operates five enterprise funds. Selected segment information is presented below.
Stormwater
Management
Water Sewer Recycling Utility Liquor Total
Operating revenue $ 398,555 $ 680,534 $ 77 ,600 $ 48,425 $ 667,490 $ 1,872,604
Depreciation expense 178,328 200,821 5,276 9,662 394,087
Operating income 10,895 5,413 (26,551 ) 953 85,308 76,018
Operating transfers in 10,000 10,000
Operating transfers out (5,000) (10,000) (10,000) (25,000)
Net income (10,821 ) 103,822 (805 ) 209,276 83,050 384,522
Fixed asset additions 68,488 14,680 477 ,468 14,194 574,830
Net working capital 1,793,864 2,849,321 54,379 (52,874 ) 509,151 5,153,841
Contributed capital
additions 474,768 474,768
Total assets 7,420,876 5,685,792 54,379 1,198,866 642,775 15,002,688
Bonds payable 1,915,000 1,915,000
Total equity 5,401,115 5,669,999 54,379 994,972 559,612 12,680,077
C. Legal Debt Margin
In accordance with Minnesota Statutes, the City may not incur or be subject to net debt in excess of two percent
of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and,
therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax
increments. The total market value of taxable property in the City is $738,345,500, which leaves a legal debt
margin of $14,766,910. There is no debt subject to the limit.
Note 7: OPERATING LEASES
The City leases space for liquor store operations. These leases are considered, for accounting purposes, to be operating
leases. Lease expense for the year ended December 31, 2001 amounted to $167,433. Future minimum lease payments
for all leases are as follows:
Year Ending Shorewood Waterford
December 31 , Plaza Center Tonka Bay Total
2002 $ 41,895 $ 55,000 $ 1,250 98,145
2003 55,000 55,000
2004 55,000 55,000
2005 55,000 55,000
2006 55,000 55,000
Thereafter 13,750 13.750
Total $ 41.895 $ 288.750 $ 1.250 $ 331.895
The new lease for Waterford Center began April 1, 2002 and will run through March 31, 2007. The Shorewood
Village Plaza lease began January 1, 1997 and ran through December 31, 2001 and was extended one year to
December 31, 2002. The Tonka Bay lease is a month-to-month lease and may be cancelled by either party with a 30
day written notice.
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CITY OF SHOREWOOD, MINNESOTA
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
Receivables
Accrued interest
Delinquent taxes
Accounts
Special assessments
Delinquent
Deferred
Due from other funds
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 31,2001 AND 2000
TOTAL LIABILITIES AND FUND BALANCE
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2001
(With comparative actual amounts for the year ended December 31, 2000)
2001 2000
Variance -
Favorable
Budget Actual (Unfavorable) Actual
REVENUE
Taxes
General property taxes $ 2,208,574 $ 2,128,512 $ (80,062) $ 1,862,568
Fiscal disparities 78,013 78,013 76,137
Total 2,208,574 2,206,525 (2,049) 1,938,705
Licenses and permits
Business 16,860 12,545 (4,315) 12,090
Nonbusiness 124,340 336,970 212,630 333,996
Total 141,200 349,515 208,315 346,086
Intergovernmental
State
Property tax credits 427,003 427,003 426,898
Other 26,913 70,266 43,353 58,148
Total 453,916 497,269 43,353 485,046
Charges for services
General government 41,500 25,257 (16,243) 15,93 1
Parks and recreation 12,600 16,965 4,365 13,450
Total 54,100 42,222 (11,878) 29,381
Fines and forfeitures 95,000 61,243 (33,757) 76,483
Interest on investments 100,000 122,231 22,231 142,599
Miscellaneous revenue
Other 45,000 38,771 (6,229) 58,244
TOTAL REVENUE 3,097,790 3,317,776 219,986 3,076,544
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND I
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31, 2001
(With comparative actual amounts for the year ended December 31, 2000) I
2001 2000
Variance - I
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES I
Current
General government
Mayor and Council
Personal services $ 13,564 $ 13,564 $ $ 13,564 I
Supplies 1,500 725 775 684
Other services and charges 80,450 73,744 6,706 51,823
Total 95,514 88,033 7,481 66,071 I
Administrative
Personal services 99,773 99,764 9 104,017 I
Supplies 400 47 353
Other services and charges 6,850 4,792 2,058 30,135
Total 107,023 104,603 2,420 134,152 I
City clerk I
Personal services 86,119 96,939 (10,820)
Supplies 10,600 11,922 (1,322)
Other services and charges 28,390 19,192 9,198
Total 125,109 128,053 (2,944) I
Finance
Personal services 101,376 106,001 (4,625) 95,777 I
Supplies 950 1,053 (103) 4,053
Other services and charges 16,050 8,239 7,811 3,273
Total 118,376 115,293 3,083 103, I 03 I
Professional services I
Personal services 75,733
Supplies 8,143
Other services and charges 149,950 197,473 (47,523) 237,403
Total 149,950 197,473 (47,523) 321,279 I
Planning and zoning I
Personal services 118,635 117,204 1,431 77 ,667
Supplies 400 122 278 357
Other services and charges 17,850 24,549 (6,699) 10,340
Total 136,885 141,875 (4,990) 88,364 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGET AND ACTUAL - CONTINUED
YEAR ENDED DECEMBER 31,2001
I (With comparative actual amounts for the year ended December 31, 2000)
2001 2000
I Variance -
Favorable
Budget Actual (Unfavorable) Actual
I EXPENDITURES - CONTINUED
Current - Continued
General government - Continued
Municipal building
I Supplies $ 4,320 $ 4,271 $ 49 $ 7,426
Other services and charges 88,700 101,053 (12,353) 86,229
I Total 93,020 105,324 (12,304) 93,655
Other general government
Personal services 97,056 85,495 11,561 127,494
I Supplies 750 261 489 20,348
Other services and charges 16,450 14,736 1,714 30,120
I Total 114,256 100,492 13,764 177,962
Total general government 940,133 981,146 (41,013) 984,586
I Public safety
Police protection
Supplies 100 100
I Other services and charges 578,382 549,138 29,244 549,882
Total 578,482 549,138 29,344 549,882
I Animal control
Other services and charges 21,800 19,486 2,314 18,574
I Fire protection
Other services and charges 235,954 248,398 (12,444) 191,175
I Protective inspection
Personal services 85,673 68,841 16,832 64,444
Supplies 1,050 1,030 20 251
Other services and charges 5,550 6,177 (627) 3,157
I Total 92,273 76,048 16,225 67,852
I Total public safety 928,509 893,070 35,439 827,483
Public works
General maintenance
I Personal services 213,381 195,817 17,564 169,537
Supplies 25,700 23,212 2,488 29,655
Other services and charges 36,350 36,628 (278) 24,279
I Total 275,431 255,657 19,774 223,471
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND I
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGETANDACTUAL-CONTINUED
YEAR ENDED DECEMBER 31,2001
(With comparative actual amounts for the year ended December 31, 2000) I
2001 2000
Variance - I
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED
Current - Continued I
Public works - Continued
Streets and highways
Personal services $ 97,805 $ 77,123 $ 20,682 $ 42,150 I
Supplies 35,000 46,498 (11,498) 20,672
Other services and charges 6,100 8,669 (2,569) 50,280
Total 138,905 132,290 6,615 113,102 I
Snow and ice removal
Personal services 30,595 24,215 6,380 16,694 I
Supplies 17,900 14,424 3,476 15,416
Total 48,495 38,639 9,856 32,110
Traffic control I
Supplies 3,550 3,535 15 3,291
Other services and charges 36,000 35,259 741 34,926 I
Total 39,550 38,794 756 38,217
Sanitation and waste removal I
Personal services 630 1,619 (989) 1,725
Other services and charges 3,500 5,839 (2,339) 5,954
Total 4,130 7,458 (3,328) 7,679 I
Tree maintenance I
Personal services 9,718 7,900 1,818 14,238
Supplies 300 286 14 67
Other services and charges 13,850 6,068 7,782 6,140 I
Total 23,868 14,254 9,614 20,445
Total public works 530,379 487,092 43,287 435,024 I
Culture and recreation
Personal services 104,494 86,170 18,324 98,315
Supplies 16,000 8,617 7,383 8,239 I
Other services and charges 31,250 31,352 (102) 29,337
Total culture and recreation 151,744 126,139 25,605 135,891 I
Total current expenditures 2,550,765 2,487,447 63,318 2,382,984
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGETANDACTUAL-CONTINUED
I YEAR ENDED DECEMBER 31,2001
(With comparative actual amounts for the year ended December 31, 2000)
2001 2000
I Variance -
Favorable
Budget Actual (Unfavorable) Actual
I EXPENDITURES - CONTINUED
Capital outlay
General government $ 5,481 $ 14,896 $ (9,415) $ 4,496
Public works 1,891
I Total capital outlay 5,481 14,896 (9,415) 6,387
I Debt service
Principal 23,358 23,358 21,970
Interest and other 14,186 14,186 15,574
I Total debt service 37,544 37,544 37,544
TOTAL EXPENDITURES 2,593,790 2,539,887 53,903 2,426,915
I EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES 504,000 777,889 273,889 649,629
I OTHER FINANCING SOURCES (USES)
Operating transfers in 30,000 30,000 28,000
Operating transfers out (534,000) (534,000) (494,800)
I TOTAL OTHER FINANCING
SOURCES (USES) (504,000) (504,000) (466,800)
I EXCESS (DEFICIENCY) OF REVENUE AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER USES $ 273,889 $ 273,889 182,829
I FUND BALANCE, JANUARY 1 1,749,180 1,566,351
I FUND BALANCE, DECEMBER 31 $ 2,023,069 $ 1,749,180
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
Debt service funds are used to account for the payment of interest and principal on long-term general
obligation debt other than debt issued for and serviced primarily by enterprise funds.
1993 Improvement and Refundine: Fund - This fund was established to account for the accumulation of
resources for payment of interest and principal on bonds issued for the Season's development improvements
and to refund the 1987 refunding bonds.
Waterford III Tax Increment Fund - This fund was established to account for the accumulation of
resources for payment of interest and principal on bonds issued for the Waterford III Intersection
Improvements.
1991 Improvement and Refundine: 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.
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2001
(With comparative totals for December 31,2000)
1993 1991
Improvement Waterford Improvement
and III Tax and
Refunding Increment Refunding
ASSETS
Cash and temporary investments $ 170,270 $ 9,584 $ 51,022
Receivables
Accrued interest 545
Special assessments
Delinquent
Deferred 32,458
TOTAL ASSETS $ 170,815 $ 9,584 $ 83,480
LIABILITIES AND FUND BALANCE
LIABILITIES
Deferred revenue $ $ $ 32,458
FUND BALANCE
Reserved for debt service 170,815 9,584 51,022
TOTAL LIABILITIES AND FUND BALANCE $ 170,815 $ 9,584 $ 83,480
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Exhibit B-1
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I Totals
2001 2000
I $ 230,876 $ 301,969
I 545 1,684
204
I 32,458 76,014
$ 263,879 $ 379,871
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$ 32,458 $ 76,014
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231,421 303,857
I $ 263,879 $ 379,871
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31,2001
(With comparative totals for the year ended December 31,2000)
1993 1991
Improvement Waterford Improvement
and III Tax and
Refunding Increment Refunding
REVENUE
Special assessments $ 14,621 $ $ 36,170
Interest on investments 8,712 337 5,554
TOTAL REVENUE 23,333 337 41,724
EXPENDITURES
Debt service
Principal 30,000 95,000
Interest and service charges 4,029 5 8,796
TOTAL EXPENDITURES 34,029 5 103,796
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (10,696) 332 (62,072)
FUND BALANCE, JANUARY 1 181,511 9,252 113,094
FUND BALANCE, DECEMBER 31 $ 170,815 $ 9,584 $ 51,022
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Exhibit B-2
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I Totals
2001 2000
I $ 50,791 $ 60,098
14,603 17,634
I 65,394 77,732
I 125,000 130,000
12,830 20,518
I 137,830 150,518
I (72,436) (72,786)
I 303,857 376,643
$ 231,421 $ 303,857
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by enterprise funds.
Public Facilities/Office Eauipment - 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 - This fund accounts for park land acquisition and other capital improvements
in the City parks.
Eauipment Replacement - This fund was established for the purpose of funding the replacement of capital
equipment.
Street Reconstruction - This fund was established for the purpose of funding the periodic reconstruction of
City streets and roadways.
MSA Construction - This fund was established to account for the accumulation of Municipal State Aid
(MSA) to fund the periodic reconstruction of MSA designated roads.
Trail Capital Improvements - This fund was established to account for trail extensions and improvements.
Senior Community Center - This fund was established to account for the construction of a Senior
Community Center.
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE (DEFICIT)
YEAR ENDED DECEMBER 31, 2001 I
(With comparative totals for the year ended December 31, 2000)
Public I
F acilities/ Park
Office Capital Equipment
Equipment Improvement Replacement I
REVENUE
Intergovernmental $ $ $
Special assessments 1,694 I
Interest on investments 2,509 9,576 9,400
Miscellaneous
Park dedication fees 9,000
Contributions and donations 23,465 I
Other
TOTAL REVENUE 4,203 42,041 9,400 I
EXPENDITURES
Capital outlay I
General government 26,954 3,960
Public works
Culture and recreation 72,469 I
Debt service
Interest and other 13,839
TOTAL EXPENDITURES 26,954 86,308 3,960 I
EXCESS (DEFICIENCY) OF REVENUE I
OVER EXPENDITURES (22,751) (44,267) 5,440
OTHER FINANCING SOURCES (USES) I
Operating transfers in 29,700 10,000 117,300
Operating transfers out
TOTAL OTHER FINANCING I
SOURCES (USES) 29,700 10,000 117,300
EXCESS (DEFICIENCY) OF REVENUE AND OTHER I
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES 6,949 (34,267) 122,740
FUND BALANCE (DEFICIT), JANUARY 1 52,328 (59,893) 159,525 I
FUND BALANCE (DEFICIT), DECEMBER 31 $ 59,277 $ (94,160) $ 282,265
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Exhibit C-2
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I Trail Senior
Street MSA Capital Community Totals
I Reconstruction Construction Improvements Center 2001 2000
$ $ 2,606,774 $ $ $ 2,606,774 $ 240,909
I 1,694 1,615
55,715 8,939 2,513 88,652 88,101
I 9,000 16,500
23,465
69,497
I 55,715 2,615,713 2,513 2,729,585 416,622
I 30,914 291,069
53,032 1,943,388 1,996,420 308,445
I 34,804 804 108,077 550,642
13,839
I 53,032 1,943,388 34,804 804 2,149,250 1,150,156
I 2,683 672,325 (32,291) (804) 580,335 (733,534)
I 367,000 524,000 561,675
(5,000) (5,000) (3,000)
I 367,000 (5,000) 519,000 558,675
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369,683 672,325 (37,291) (804) 1,099,335 (174,859)
I 1,174,122 145,873 8,638 (19,581) 1,461,012 1,635,871
$ 1,543,805 $ 818,198 $ (28,653) $ (20,385) $ 2,560,347 $ 1,461,012
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business, where the costs of providing services to the general public are financed primarily through
user charges.
Water Fund - This fund is used to account for the activities of the City water system and to service debt
incurred in the building of infrastructure for the system.
Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system.
Recvclin2 Fund - This fund is used to account for the activities of the City recycling program.
Stormwater Mana2ement Utility Fund - This fund is used to account for the activities of the City
Stormwater Management system.
Liauor Fund - This fund is used to account for the activities of the City's off-sale liquor operation. The
operation consisted of three off-sale liquor store sites in 2001. 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 I
COMBINING BALANCE SHEET
DECEMBER 31, 2001
(With comparative totals for December 31,2000) I
Water Sewer Recycling I
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 1,494,808 $ 2,026,007 $ 37,785 I
Receivables
Accrued interest 4,629 6,263
Delinquent taxes I
Accounts 68,144 172,518 14,878
Special assessments
Delinquent 6,064 3,246 310
Deferred 500,771 17,976 1,406 I
Due from other funds 607,039
Inventories, at cost
Prepaid items 9,209 32,065 I
TOTAL CURRENT ASSETS 2,083,625 2,865,114 54,379
FIXED ASSETS, AT COST 6,876,501 7,928,803 I
LESS ACCUMULATED DEPRECIATION (1,553,721) (5,108,125)
NET FIXED ASSETS 5,322,780 2,820,678 I
OTHER ASSETS
Bond discount, net of amortization 14,471
TOTAL ASSETS $ 7,420,876 $ 5,685,792 $ 54,379 I
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES I
Accounts and contracts payable $ 64,918 $ 15,793 $
Salaries and compensated absences payable
Due to other funds I
Accrued interest payable 39,843
Current portion of long-term debt 185,000
TOTAL CURRENT LIABILITIES 289,761 15,793 I
LONG-TERM LIABILITIES
Bonds payable less current portion above 1,730,000 I
TOTAL LIABILITIES 2,019,761 15,793
FUND EQUITY I
Contributed capital 4,924,058 4,657,264
Retained earnings
Unreserved 477,057 1,012,735 54,379 I
TOTAL FUND EQUITY 5,401,115 5,669,999 54,379
TOTAL LIABILITIES AND FUND EQUITY $ 7,420,876 $ 5,685,792 $ 54,379 I
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Exhibit D-2
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I Stormwater
Management Totals
I Utility Liquor 2001 2000
$ $ 2,629,590 $ 2,629,590 $ 2,532,379
I (1,962,100) (1,962,100) (1,888,069)
667,490 667,490 644,310
I 48,425 1,112,272 1,108,320
92,842 195,690
I 48,425 667,490 1,872,604 1,948,320
2,4 73 290,934 330,684 292,986
I 600 12,911 29,386 34,222
30,368 32,652
5,276 9,662 394,087 378,710
I 28,251 5,307 47,070 26,449
4,415 2,962 223,455 189,551
6,457 6,457 137
I 12,597 17,628 18,436
12,735 21,177
24,308 79,985 75,031
389,538 306,164
I 167,433 167,433 169,222
10,374 10,374 8,986
45,694 57,386 37,921
I 47,472 582,182 1,796,586 1,591,644
953 85,308 76,018 356,676
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I 40,348 41,410
5,043 17,251 196,041 282,215
200,048 (9,509) 234,850 59,556
I (6,768) (147,753) (109,736)
198,323 7,742 323,504 273,455
I 199,276 93,050 399,522 630,131
10,000 10,000 10,000
(10,000) (25,000) (101,875)
I 209,276 83,050 384,522 538,256
310,928 476,562 2,239,465 1,701,209
I $ 520,204 $ 559,612 $ 2,623,987 $ 2,239,465
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CITY OF SHOREWOOD, MINNESOTA I
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS I
YEAR ENDED DECEMBER 31, 2001
(With comparative totals for the year ended December 31, 2000)
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Water Sewer Recycling I
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 10,895 $ 5,413 $ (26,551 )
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities; I
Other income (loss) related to operations 20,191
Depreciation and amortization 179,732 200,821
(Increase) decrease in assets: I
Accounts receivable (11,183) 20,826 144
Special assessments receivable 12,668 2,305
Inventory
Prepaid items (6,336) (30,882) I
Increase (decrease) in liabilities:
Accounts payable 34,817 11,584 (33)
Salaries and compensated absences payable (194) (27) I
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 227,922 220,403 (24,135)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES I
Increase in due from other funds (42,039)
Operating transfers in
Increase (decrease) in due to other funds I
Operating transfers out (5,000) (10,000)
NET CASH PROVIDED BY NONCAPITAL I
FINANCING ACTIVITIES (5,000) (52,039)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal payments on note receivable I
Principal paid on revenue bonds (185,000)
Interest paid on revenue bonds (101,142)
Acquisition of fixed assets (68,488) (14,680) I
Property taxes collected 53
Special assessments collected 130,437
Other income from capital and related financing activities 24,120 I
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED
FINANCING ACTIVITIES (224,140) (14,680) 24,120
CASH FLOWS FROM INVESTING ACTIVITIES I
Interest received on investments 67,778 113,671 1,825
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 66,560 267,355 1,810 I
CASH AND CASH EQUIVALENTS, JANUARY 1 1,428,248 1,758,652 35,975
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,494,808 $ 2,026,007 $ 37,785
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES I
Fixed assets acquired from developers $ $ $
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Exhibit D-3
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I Stormwater
Management Totals
I Utility Liquor 2001 2000
$ 953 $ 85,308 $ 76,018 $ 356,676
I (9,509) 10,682 37,698
5,276 9,662 395,491 380,113
I 936 (7,199) 3,524 (19,460)
(738) 14,235 (3,086)
I 34,707 34,707 (59,149)
(2,284) (39,502) 955
3,826 39,340 89,534 (122,497)
I (7,167) (7,388) 5,133
10,253 142,858 577,301 576,383
I (42,039) (565,000)
I 10,000 10,000 10,000
(200,000) (200,000) 400,000
(10,000) (25,000) (101,875)
I (190,000) (10,000) (257,039) (256,875)
I 46,500
(185,000) (190,000)
(101,142) (109,736)
I (2,700) (14,194) (100,062) (876,845)
53 16
130,437
I 193,280 217,400 162,364
190,580 (14,194) (38,314) (967,701)
I 6,229 17,600 207,103 287,694
I 17,062 136;264 489,051 (360,499)
118,043 152,512 3,493,430 3,853,929
I $ 135,105 $ 288,776 $ 3,982,481 $ 3,493,430
$ 474,768 $ $ 474,768 $
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I CITY OF SHOREWOOD, MINNESOTA
Exhibit D-5
I WATER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2001 AND 2000
I 2001 2000
OPERATING REVENUE
I Charges for services $ 319,260 $ 285,212
Permits and connection fees 79,295 180,336
TOTAL OPERATING REVENUE 398,555 465,548
I OPERATING EXPENSES
Personal services 17,830 12,595
I Supplies 13,592 13,151
Repairs and maintenance 23,023 19,645
Depreciation 178,328 172,032
I Professional services 9,238 10,623
Contracted services 70,570 55,327
Insurance 3,617 4,184
I Water purchases 12,735 21,177
Utilities 50,612 47,654
Other 8,115 2,340
I TOTAL OPERATING EXPENSES 387,660 358,728
I OPERATING INCOME 10,895 106,820
NONOPERATING REVENUE (EXPENSES)
I General property taxes 18 10
Special assessments 40,348 41,410
Interest on investments 63,712 93,266
I Other income 20,191 33,486
Interest expense (140,985) (109,736)
I TOTAL NONOPERATING REVENUE (EXPENSES) (16,716) 58,436
INCOME BEFORE TRANSFERS (5,821) 165,256
I OPERATING TRANSFER OUT (5,000) (5,000)
I NET INCOME (LOSS) (10,821) 160,256
RETAINED EARNINGS, JANUARY 1 487,878 327,622
I RETAINED EARNINGS, DECEMBER 31 $ 477,057 $ 487,878
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CITY OF SHOREWOOD, MINNESOTA I
Exhibit D-6
WATER FUND I
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000 I
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 10,895 $ 106,820 I
Adjustments to reconcile operating income to net cash
provided by operating activities:
Other income related to operations 20,191 33,486 I
Depreciation and amortization 179,732 173,435
(Increase) decrease in assets:
Accounts receivable (11,183) (10,122)
Prepaid items ( 6,336) 737 I
Increase (decrease) in liabilities:
Accounts and contracts payable 34,817 3,277
Salaries and compensated absences payable (194) 11 I
NET CASH PROVIDED BY OPERATING ACTIVITIES 227,922 307,644
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES I
Operating transfers to other funds (5,000) (5,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES I
Principal payments on note receivable 46,500
Bond principal paid (185,000) (190,000) I
Interest paid on revenue bonds (101,142) (109,736)
Acquisition of fixed assets (68,488) (214,037)
Property taxes collected 53 16 I
Special assessments collected 130,437 140,506
NET CASH USED BY CAPITAL AND RELATED FINANCING I
ACTIVITIES (224,140) (326,751)
CASH FLOWS FROM INVESTING ACTIVITIES I
Interest received on investments 67,778 93,983
INCREASE IN CASH AND CASH EQUIVALENTS 66,560 69,876 I
CASH AND CASH EQUIVALENTS, JANUARY 1 1,428,248 1,358,372
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,494,808 $ 1,428,248 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-7
I SEWER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2001 AND 2000
I 2001 2000
ASSETS
I CURRENT ASSETS
Cash and temporary investments $ 2,026,007 $ 1,758,652
Receivables
I Accrued interest 6,263 11,525
Accounts 172,518 193,345
Special assessments
I Delinquent 3,246 12,897
Deferred 17,976 20,993
Due from other funds 607,039 565,000
I Prepaid items 32,065 1,183
TOTAL CURRENT ASSETS 2,865,114 2,563,595
I FIXED ASSETS, AT COST 7,928,803 7,914,123
LESS ACCUMULATED DEPRECIATION (5,108,125) (4,907,305)
I NET FIXED ASSETS 2,820,678 3,006,818
TOTAL ASSETS $ 5,685,792 $ 5,570,413
I LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
I Accounts and contracts payable $ 15,793 $ 4,209
Salaries and compensated absences payable 27
I TOTAL CURRENT LIABILITIES 15,793 4,236
FUND EQUITY
I Contributed capital 4,657,264 4,657,264
Retained earnings
Unreserved 1,012,735 908,913
I TOTAL FUND EQUITY 5,669,999 5,566,177
I TOTAL LIABILITIES AND FUND EQUITY $ 5,685,792 $ 5,570,413
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-8
SEWER FUND I
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000 I
OPERATING REVENUE
Charges for services $ 666,987 $ 693,904 I
Pennits and connection fees 13,547 15,354
TOTAL OPERATING REVENUE 680,534 709,258 I
OPERATING EXPENSES
Personal services 18,795 18,973
Supplies 1,300 3,735 I
Repairs and maintenance 7,345 13,007
Depreciation 200,821 198,975
Professional services 4,274 7,962 I
Contracted services 43,132 44,050
Insurance 1,414 2,416
Utilities 5,065 4,855 I
MCES charges 374,980 306,164
Excelsior sewer charges 14,558
Other 3,437 3,058 I
TOTAL OPERATING EXPENSES 675,121 603,195
OPERATING INCOME 5,413 106,063 I
NONOPERATING REVENUE I
Interest on investments 108,409 146,025
Other income 5,000
TOTAL NONOPERATING REVENUE 108,409 151,025 I
INCOME BEFORE TRANSFERS 113,822 257,088 I
(10,000) (86,875)
OPERATING TRANSFER OUT
NET INCOME 103,822 170,213 I
RETAINED EARNINGS, JANUARY 1 908,913 738,700 I
RETAINED EARNINGS, DECEMBER 31 $ 1,012,735 $ 908,913
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-9
SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 5,413 $ 106,063
Adjustments to reconcile operating income to net cash provided by
operating activities:
Other income related to operations 5,000
Depreciation 200,821 198,975
(Increase) decrease in assets:
Accounts receivable 20,826 (6,077)
Special assessments receivable 12,668 (618)
Prepaid items (30,882) 996
Increase (decrease) in liabilities:
Accounts and contracts payable 11,584 (19,820)
Salaries and compensated absences payable (27) (60)
NET CASH PROVIDED PROVIDED BY OPERATING ACTIVITIES 220,403 284,459
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Increase in due from other funds (42,039) (565,000)
Operating transfers out (10,000) (86,875)
NET CASH USED BY NONCAPITAL FINANCING ACTIVITIES (52,039) (651,875)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets (14,680) (75,002)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 113,671 150,446
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 267,355 (291,972)
CASH AND CASH EQUIVALENTS, JANUARY 1 1,758,652 2,050,624
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 2,026,007 $ 1,758,652
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-IO
RECYCLING FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2001 AND 2000
2001 2000
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 37,785 $ 35,975
Receivables
Accrued interest 199
Accounts 14,878 15,022
Special assessments
Delinquent 310 468
Deferred 1,406 3,553
TOTAL ASSETS $ 54,379 $ 55,217
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable $ $ 33
RETAINED EARNINGS
Unreserved 54,379 55,184
TOTAL RETAINED EARNINGS $ 54,379 $ 55,217
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-ll
RECYCLING FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000
OPERATING REVENUE
Charges for services $ 77 ,600 $ 76,864
OPERATING EXPENSES
Personal services 652
Supplies 983 1,840
Contracted service 102,376 85,440
Other 140 139
TOTAL OPERATING EXPENSES 104,151 87,419
OPERATING INCOME (LOSS) (26,551) (10,555)
NONOPERATING REVENUE
County recycling grant 23,728 21,858
Interest on investments 1,626 2,436
Other 392
TOTAL NONOPERATING REVENUE 25,746 24,294
NET INCOME (805) 13,739
RETAINED EARNINGS, JANUARY 1 55,184 41,445
RETAINED EARNINGS, DECEMBER 31 $ 54,379 $ 55,184
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-12
RECYCLING FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss $ (26,551) $ (10,555)
Adjustments to reconcile operating income (loss) to net cash provided
(used) by operating activities:
County recycling grant 23,728 21,858
Other income related to operations 392
(Increase) decrease in assets:
Accounts receivable 144 (1,727)
Special assessments receivable 2,305 (2,432)
Increase (decrease) in liabilities:
Accounts payable (33) 33
NET CASH PROVIDED (USED)BY OPERATING ACTIVITIES (15) 7,177
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 1,825 2,481
INCREASE IN CASH AND CASH EQUIVALENTS 1,810 9,658
CASH AND CASH EQUIVALENTS, JANUARY 1 35,975 26,317
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 37,785 $ 35,975
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-13
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2001 AND 2000
2001 2000
ASSETS
CURRENT ASSETS
Cash and investments $ 135,105 $ 118,043
Receivables
Accrued interest 545 1,731
Accounts 13,023 13,959
Special assessments
Delinquent 306 510
Deferred 2,041 1,099
TOTAL CURRENT ASSETS 151,020 135,342
FIXED ASSETS, AT COST 1,054,216 576,748
LESS ACCUMULATED DEPRECIATION (6,370) (1,094)
NET FIXED ASSETS 1,047,846 575,654
TOTAL ASSETS $ 1,198,866 $ 710,996
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable $ 3,894 $ 68
Due to other funds 200,000 400,000
TOTAL CURRENT LIABILITIES 203,894 400,068
FUND EQUITY
Contributed capital 474,768
Retained earnings
Unreserved 520,204 310,928
TOTAL FUND EQUITY 994,972 310,928
TOTAL LIABILITIES AND FUND EQUITY $ 1,198,866 $ 710,996
-52-
CITY OF SHOREWOOD, MINNESOTA Exhibit D-14
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000
OPERATING REVENUE
Charges for services $ 48,425 $ 52,340
OPERATING EXPENSES
Personal services 2,473 2,341
Supplies 600 642
Depreciation 5,276 1,094
Professional services 28,251 3,985
Contracted services 4,415 2,618
Other 6,457
TOTAL OPERATING EXPENSES 47,472 10,680
OPERATING INCOME 953 41,660
NONOPERATING REVENUE (EXPENSES)
Interest on investments 5,043 17,505
Other income 200,048
Interest expense (6,768)
TOTAL NONOPERATING REVENUE (EXPENSES) 198,323 17,505
INCOME BEFORE OPERATING TRANSFERS 199,276 59,165
OPERATING TRANSFER FROM OTHER FUNDS 10,000 10,000
NET INCOME 209,276 69,165
RETAINED EARNINGS, JANUARY 1 310,928 241,763
RETAINED EARNINGS, DECEMBER 31 $ 520,204 $ 310,928
-53-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-15
I STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2001 AND 2000
I 2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
I Operating income $ 953 $ 41,660
Adjustments to reconcile operating income to net
cash provided by operating activities:
I Other income related to operations 200,048
Depreciation 5,276 1,094
(Increase) decrease in assets:
I Accounts receivable 936 (1,534)
Special assessments receivable (738) (36)
Increase (decrease) in liabilities:
I Accounts payable 3,826 (2,350)
Due to other funds (200,000) 400,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 10,301 438,834
I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds 10,000 10,000
I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets (2,700) (576,748)
I Interest paid (6,768)
NET CASH USED BY CAPITAL AND RELATED FINANCING
I ACTIVITIES (9,468) (576,748)
CASH FLOWS FROM INVESTING ACTIVITIES
I Interest on investments 6,229 17,661
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 17,062 (110,253)
I CASH AND CASH EQUIVALENTS, JANUARY 1 118,043 228,296
I CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 135,105 $ 118,043
SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
I Fixed assets acquired from developers $ 474,768 $
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2001 AND 2000
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Inventories
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
-55-
I
Exhibit D-16
I
2001 2000 I
$ 288,776 $ 152,512 I
1,634 1,983
282,408 317,115 I
12,297 10,013
592,314 481,623 I
127,740 113,546
(77,279) (67,617) I
50,461 45,929
$ 642,775 $ 527,552 I
$ 72,451 $ 33,111 I
10,712 17,879
83,163 50,990 I
559,612 476,562 I
$ 642,775 $ 527,552 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-17
LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2001 AND 2000
OPERATING REVENUE
Sales
Less cost of sales
TOTAL OPERATING REVENUE
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional services
Contracted services
Insurance
Utilities
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other expense
TOTAL NONOPERATING REVENUE (EXPENSES)
INCOME BEFORE TRANSFERS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
-56-
2001 2000
$ 2,629,590 $ 2,532,379
(1,962,100) (1,888,069)
667,490 644,310
290,934 259,077
12,911 14,854
9,662 6,609
5,307 3,879
2,962 2,116
12,597 11,836
24,308 22,522
167,433 169,222
10,374 8,986
45,694 32,521
582,182 531,622
85,308 112,688
17,251 22,983
(9,509) (788)
7,742 22,195
93,050 134,883
(10,000) (10,000)
83,050 124,883
476,562 351,679
$ 559,612 $ 476,562
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-18
LIQUOR FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2001 AND 2000
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 85,308 $ 112,688
Adjustments to reconcile operating income to net cash provided (used) by
operating activities:
Other expense related to operations (9,509) (788)
Depreciation 9,662 6,609
(Increase) decrease in assets:
Inventories 34,707 (59,149)
Prepaid items (2,284) (778)
Increase (decrease) in liabilities:
Accounts and contracts payable 39,340 (103,637)
Salaries and compensated absences payable (7,167) 5,182
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 142,858 (39,873)
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Operating transfers out (10,000) (10,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets (14,194) (11,058)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 17,600 23,123
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 136,264 (37,808)
CASH AND CASH EQUIVALENTS, JANUARY I 152,512 190,320
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 288,776 $ 152,512
-57-
CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING BALANCE SHEETS
DECEMBER 31, 2001 AND 2000
Tonka Bay
2001 2000
ASSETS
CURRENT ASSETS
Cash and temporary investments (deficit) $ 148,782 $ 115,600
Receivables
Accrued interest 545 637
Accounts
Inventories, at cost 73,108 82,186
Prepaid items 4,987 4,335
TOTAL CURRENT ASSETS 227,422 202,758
FIXED ASSETS, AT COST 12,715 12,715
LESS ACCUMULATED DEPRECIATION (3,303) (1,260)
NET FIXED ASSETS 9,412 11,455
TOTAL ASSETS $ 236,834 $ 214,213
LIABILITIES AND RETAINED EARNINGS (DEFICIT)
CURRENT LIABILITIES
Accounts and contracts payable $ 26,077 $ 17,744
Salaries and compensated absences payable 1,804 5,725
TOTAL LIABILITIES 27,881 23,469
RETAINED EARNINGS (DEFICIT)
Unreserved 208,953 190,744
TOTAL LIABILITIES AND
RETAINED EARNINGS (DEFICIT) $ 236,834 $ 214,213
-58-
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Exhibit D-19
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I Waterford Center Shorewood Plaza Totals
2001 2000 2001 2000 2001 2000
I $ (196,276) $ (208,442) $ 336,270 $ 245,354 $ 288,776 $ 152,512
I 1,089 1,346 1,634 1,983
7,199 7,199
I 101,739 102,362 107,561 132,567 282,408 317,115
3,181 2,830 4,129 2,848 12,297 10,013
(91,356) (103,250) 456,248 382,115 592,314 481,623
I 77 ,822 77,449 37,203 23,382 127,740 113,546
(49,998) (44,227) (23,978) (22,130) (77,279) (67,617)
I 27,824 33,222 13,225 1,252 50,461 45,929
I $ (63,532) $ (70,028) $ 469,473 $ 383,367 $ 642,775 $ 527,552
I $ 16,433 $ 5,502 $ 29,941 $ 9,865 $ 72,451 $ 33,111
1,271 7,012 7,637 5,142 10,712 17,879
I 17,704 12,514 37,578 15,007 83,163 50,990
I (81,236) (82,542) 431,895 368,360 559,612 476,562
I $ (63,532) $ (70,028) $ 469,473 $ 383,367 $ 642,775 $ 527,552
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND I
COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT)
YEARS ENDED DECEMBER 31,2001 AND 2000
Tonka Bay I
2001 2000
OPERATING REVENUE I
Sales $ 768,232 $ 727,990
Less cost of goods sold (586,654) (537,925)
GROSS PROFIT 181,578 190,065 I
OPERATING EXPENSES I
Personal services 100,486 85,655
Supplies 4,300 4,707
Depreciation 2,043 549
Professional services 1,733 1,795 I
Contracted services 1,774 982
Insurance 5,578 4,752
Utilities 8,037 6,949 I
Rent 24,584 23,427
Advertising 2,864 2,812
Other 12,825 8,680 ,I
TOTAL OPERATING EXPENSES 164,224 140,308
OPERATING INCOME (LOSS) 17,354 49,757 I
NONOPERATING REVENUE (EXPENSES) I
Interest on investments 5,855 7,687
Other income (expense) 605
TOTAL NONOPERATING REVENUE I
(EXPENSES) 5,855 8,292
INCOME (LOSS) BEFORE TRANSFERS 23,209 58,049 I
OPERATING TRANSFERS TO OTHER FUNDS (5,000) (5,000) I
NET INCOME (LOSS) 18,209 53,049
RETAINED EARNINGS (DEFICIT), JANUARY 1 190,744 137,695 I
RETAINED EARNINGS (DEFICIT), DECEMBER 31 $ 208,953 $ 190,744 I
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Exhibit D-20
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I Waterford Center Shorewood Plaza Totals
2001 2000 2001 2000 2001 2000
I $ 774,745 $ 710,433 $ 1,086,613 $ 1,093,956 $ 2,629,590 $ 2,532,379
(562,372) (539,260) (813,074) (810,884 ) (1,962,100) (1,888,069)
I 212,373 171,173 273,539 283,072 667,490 644,310
I 73,187 72,186 117,261 101,236 290,934 259,077
3,878 4,020 4,733 6,127 12,911 14,854
5,771 5,816 1,848 244 9,662 6,609
I 1,841 1,042 1,733 1,042 5,307 3,879
636 660 552 474 2,962 2,116
3,500 3,213 3,519 3,871 12,597 11,836
I 7,991 7,579 8,280 7,994 24,308 22,522
86,114 85,021 56,735 60,774 167,433 169,222
4,064 2,891 3,446 3,283 10,374 8,986
I 14,576 11 ,092 18,293 12,749 45,694 32,521
201,558 193,520 216,400 197,794 582,182 531,622
I 10,815 (22,347) 57,139 85,278 85,308 112,688
I 11,396 15,296 17,251 22,983
(9,509) (911) (482) (9,509) (788)
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(9,509) (911 ) 11,396 14,814 7,742 22,195
I 1,306 (23,258) 68,535 100,092 93,050 134,883
I (5,000) (5,000) (10,000) (10,000)
1,306 (23,258) 63,535 95,092 83,050 124,883
I (82,542) (59,284) 368,360 273,268 476,562 351,679
I $ (81,236) $ (82,542) $ 431,895 $ 368,360 $ 559,612 $ 476,562
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING SCHEDULES OF CASH FLOWS
YEARS ENDED DECEMBER 31,2001 AND 2000
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
Inventories
Prepaid items
Increase (decrease) in liabilities:
Accounts and contracts payable
Salaries and compensated absences payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH USED BY NONCAPITAL FINANCING ACTIVITIES
Operating transfers out
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of fixed assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS (DEFICIT), JANUARY 1
CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31
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2001 2000
$ 17,354 $ 49,757 I
605 I
2,043 549
9,078 (19,328) I
(652) (1,051)
8,333 (21,435) I
(3,921) 1,889
32,235 10,986 I
(5,000) (5,000) I
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(8,965)
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5,947 7,886
33,182 4,907 I
115,600 110,693 I
$ 148,782 $ 115,600
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Exhibit D-21
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I Waterford Center Shorewood Plaza Totals
2001 2000 2001 2000 2001 2000
I $ 10,815 $ (22,347) $ 57,139 $ 85,278 $ 85,308 $ 112,688
I (9,509) (911 ) (482) (9,509) (788)
5,771 5,816 1,848 244 9,662 6,609
I (7,199) (7,199)
623 (11,182) 25,006 (28,639) 34,707 (59,149)
(351 ) (182) (1,281) 455 (2,284) (778)
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10,931 (30,612) 20,076 (51,590) 39,340 (103,637)
(5,741) 1,741 2,495 1,552 (7,167) 5,182
I 12,539 (57,677) 98,084 6,818 142,858 (39,873)
I (5,000) (5,000) (10,000) (10,000)
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(373) (1,046) (13,821) (1,047) (14,194) (11,058)
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11,653 15,237 17,600 23,123
I 12,166 (58,723) 90,916 16,008 136,264 (37,808)
I (208,442) (149,719) 245,354 229,346 152,512 190,320
$ (196,276) $ (208,442) $ 336,270 $ 245,354 $ 288,776 $ 152,512
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets of a governmental jurisdiction, which are not accounted for in an
enterprise fund. To be classified as a fixed asset in this category, a specific piece of property must meet
three attributes:
1. Tangible nature
2. A life longer than the current fiscal year
3. A significant value
INVESTMENT IN GENERAL FIXED ASSETS
General fund
Capital projects funds
$ 1,215,363
3,904,088
$ 1,192,915
3,890,374
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31,2001 AND 2000
Exhibit E-l
2001 2000
GENERAL FIXED ASSETS
Land $ 456,826 $ 456,826
Buildings and structures 1,731,011 1,731,011
Improvements other than buildings 1,383,936 1,361,488
Furniture and equipment 1,547,678 1,533,964
TOTAL GENERAL FIXED ASSETS $ 5,119,451 $ 5,083,289
$ 5,119,451
$ 5,083,289
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31,2001
Exhibit E-2
Buildings Improvements Furniture
and other than and
Total Land Structures Buildings Equipment
FUNCTION
General government $ 722,641 $ $ 320,298 $ 161,504 $ 240,839
Public works 2,564,622 153,500 919,581 184,702 1,306,839
Culture and recreation 1,832,188 303,326 491,132 1,037,730
TOTAL GENERAL
FIXED ASSETS $ 5,119,451 $ 456,826 $ 1,731,011 $ 1,383,936 $ 1,547,678
-65-
CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31,2001
General
Fixed Assets
January 1 Additions
General government $ 716,802 $ 36,046
Public works 2,556,748 7,874
Culture and recreation 1,809,739 25,279
TOTAL GENERAL FIXED ASSETS $ 5,083,289 $ 69,199
-66-
Deductions
$ 30,207
2,830
$ 33,037
Exhibit E-3
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General
Fixed Assets
December 31
$ 722,641
2,564,622
1,832,188
$ 5,119,451
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
General obligation bonds and other forms of long-term debt supported by general revenues are obligations of
a governmental unit as a whole and not its individual constituent funds. The amount of outstanding long-
term indebtedness which is backed by the full faith and credit of the government (excluding enterprise fund
debt) is recorded and accounted for in a separate self-balancing account group titled the "General Long-
Term Debt Account Group". Also, this debt group includes certain liabilities not expected to be liquidated
with expendable available financial resources.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 31, 2001 AND 2000
Exhibit F-l
2001
2000
AMOUNT AVAILABLE FOR DEBT RETIREMENT
Debt service funds
$ 231,421
$ 303,857
AMOUNTS TO BE PROVIDED FOR DEBT RETIREMENT
Future tax levies, assessments and tax increments
190,035
265,175
TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED FOR
DEBT RETIREMENT
$ 421,456
$ 569,032
GENERAL LONG-TERM DEBT PAYABLE
Compensated absences payable $ 55,988 $ 55,206
Capital lease payable 210,468 233,826
General obligation improvement bonds 155,000 280,000
TOTAL GENERAL LONG-TERM DEBT PAYABLE $ 421,456 $ 569,032
-67-
CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31, 2001
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 of 1995
G.O. Water Revenue Bonds of 1996
TOTAL REVENUE BONDS
TOTAL ALL BONDS
-68-
Final
Interest Issue Maturity
Rates Date Date
5.60-5.85 % 11-01-91 02-01-02
4.00-4.45 12-01-93 02-01-04
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4.45-4.75
4.45-5.40
11-01-95
11-01-96
02-01-11
02-01-12
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CITY OF SHOREWOOD, MINNESOTA Exhibit F-3
SCHEDULE OF DEBT SERVICE REQUIREMENTS
DECEMBER 31, 2001
Total Bonds G.O. Improvement Bonds G.O. Revenue Bonds
Year Principal Interest Principal Interest Principal Interest
2002 $ 300,000 $ 96,553 $ 115,000 $ 5,139 $ 185,000 $ 91,414
2003 205,000 84,334 20,000 1,430 185,000 82,904
2004 210,000 74,570 20,000 480 190,000 74,090
2005 180,000 65,244 180,000 65,244
2006 190,000 56,240 190,000 56,240
2007 185,000 46,945 185,000 46,945
2008 185,000 37,603 185,000 37,603
2009 185,000 28,040 185,000 28,040
2010 190,000 18,115 190,000 18,115
2011 180,000 8,135 180,000 8,135
2012 60,000 1,622 60,000 1,622
TOTAL $ 2,070,000 $ 517,401 $ 155,000 $ 7,049 $ 1,915,000 $ 510,352
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CITY OF SHOREWOOD, MINNESOTA
SECTION III
STATISTICAL SECTION
CITY OF SHOREWOOD, MINNESOTA Table 1
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Culture
Fiscal Total General Public Public and Misc.! Debt
Year Expenditures Government Safety Works Recreation Transfers Service
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
2001 3,073,887 996,042 893,070 487,092 126,139 534,000 37,544
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Fiscal
Year
CITY OF SHOREWOOD, MINNESOTA Table 2
GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE
LAST TEN FISCAL YEARS
Total Licenses
General Fund and Inter- Misc.!
Revenues Taxes Permits Governmental Fines Transfers
$ 2,307,389 $ 1,576,158 $ 175,123 $ 283,689 $ 89,960 $ 182,459
2,429,910 1,515,633 247,557 426,102 70,135 170,483
2,531,339 1,487,398 256,243 441,040 73,998 272,660
2,378,009 1,489,822 184,857 440,720 68,765 193,845
2,457,755 1,569,653 205,459 427,468 80,826 174,349
2,670,175 1,703,509 236,672 450,185 76,340 203,469
2,770,825 1,776,853 223,248 532,359 73,337 165,028
2,829,676 1,870,727 221,555 468,969 94,115 174,310
3,104,544 1,938,705 346,086 485,046 76,483 258,224
3,347,776 2,206,525 349,515 497,269 61,243 233,224
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1)
Collection Percentage Collection
Fiscal Total of Current of Levy of Prior Total
Year Levy Year's Levy Collected Year's Levy Collections
1992 $ 1,864,577 $ 1,819,238 97.57 % $ 55,917 $ 1,875,155
1993 1,932,454 1,908,428 98.76 51,464 1,959,892
1994 1,518,735 1,505,212 99.11 13,886 1,519,098
1995 1,518,108 1,501,389 98.90 13,999 1,515,388
1996 1,598,713 1,577,353 98.66 16,946 1,594,299
1997 1,703,016 1,683,193 98.84 19,982 1,703,175
1998 1,778,585 1,760,645 98.99 15,694 1,776,339
1999 1,860,507 1,845,191 99.18 22,439 1,867,630
2000 1,935,779 1,922,709 99.32 15,035 1,937,744
2001 2,208,574 2,188,665 99.10 14,813 2,203,478
(1) Includes state paid property tax credits
Table 3
Percentage
of Total
Collections
to Levy
100.57 %
101.42
100.02
99.82
99.72
100.01
99.87
100.38
100.10
99.77
Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State.
Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the
HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local
government.
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CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALUATION, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2001 2000 1999 1998 1997
(2) (2)
Tax capacity $ 11,344,958 $ 10,346,255 $ 9,663,252 $ 9,897,574 $ 9,901,879
Contribution to fiscal disparities pool (253,832 ) (201,693 ) (203,942 ) (214,901) (202,668 )
Receivable from fiscal disparities pool 426,424 379,095 342,621 337,116 350,823
Tax increment (312.066 ) (319.186 ) (294.512 )
Taxable valuationtrotal tax capacity $ 11.517.550 $ 10.523.657 $ 9.489.865 $ 9.700.603 $ 9.755.522
Tax levies
General $ 2,208,574 $ 1,935,799 $ 1,860,507 $ 1,778,585 $ 1,703,016
Debt service
Total $ 2.208.574 $ 1.935.799 $ 1.860.507 $ 1.778.585 $ 1.703.016
Tax capacity rate
General 19.208% 18.340% 19.573 % 18.317% 17.479%
Debt service
Total 19.208% 18.340% 19.573% 18.317% 17.479%
(1) The debt service levy includes $8,508 for 1996, $8,568 for 1995, $8,022 for 1994, $8,526 for 1993 and $8,414 for 1992,
levied for the retirement of Storm Sewer District No.2 improvement bonds. Storm Sewer District No.2 was established by
the City of Shorewood in 1991. This portion of the debt service tax levy is only levied within Storm Sewer District No.2
to retire the $31,000 bond issue used to finance the improvements within the District and is not reflected in the tax rates
above. Table 5 reports the tax rate of this District separately.
(2) Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the
State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be
reported net of the HACA received from the State of Minnesota. As a result, the taxes levied more accurately reflect the
amount of taxation by the local government.
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I Table 4
I 1996 1995 1994 1993 1992
(2) (2) (2)
I $ 9,115,960 $ 8,045,468 $ 7,396,104 $ 7,092,917 $ 7,681,118
(178,279 ) (185,232 ) (205,973 ) (227,686 ) (212,697)
332,110 310,337 375,309 396,081 390,694
I (166,094 ) (22,195) (317 )
$ 9.103.697 $ 8.148.378 $ 7.565,123 $ 7.261.312 $ 7.859.115
I $ 1,573,930 $ 1,491,990 $ 1,491,888 $ 1,909,253 $ 1,840,663
24,783 26,118 26,847 23,201 23,914
I $ 1.598.713 $ 1.518.108 $ 1.518.735 $ 1,932.454 $ 1.864.577
17.252% 18.256% 19.655%2 20.638 % 19.995%
.179 .215 .249 .159 .169
I 17.431 % 18.471 % 19.904% 20.797% 20.164%
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF TAX CAPACITY IN 1992-2001)
Year (1)
Taxes School District Watershed District
Payable City County No. 276 No. 277 No.3 No.4 Misc.
1992 20.164% 34.327% 64.530% 56.643 % .142% .490% 5.481 %
1993 20.797 35.839 75.275 60.069 .668 .781 5.532
1994 19.904 37.441 77 .323 67.785 .334 .707 5.724
1995 18.471 37.454 76.139 66.441 2.332 .762 5.847
1996 17.431 37.270 76.340 62.418(2) 1.533 .864 6.390
1997 17.479 35.515 78.420 52.223 1.319 .860 6.149
1998 18.317 38.386 76.408 59.701 .660 .843 6.973
1999 19.573 40.994 69.423 67.286 .825 .880 8.043
2000 18.340 39.655 59.565 57.711 .525 .866 7.916
2001 19.208 37.624 47.155 40.246 1.363 .946 7.616
(1) Includes vocational school
(2) Includes market value levy of .077.
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Storm
Sewer
District
No.2
17.792%
13.437
15.495
15.353
13.956
Totals
School District 276
Watershed
District
No.4
Storm
Sewer
District
No.2
Watershed
District
No.3
124.649%
138.111
140.726
140.243
138.964
138.882
140.744
138.858
126.001
112.966
Watershed
District
No.4
124.997 %
138.224
141.099
138.673
138.295
138.423
140.927
138.913
126.342
112.549
142.789%
151.661
156.594
154.026
152.251
138.423
140.927
138.913
126.342
112.549
Table 5
School
District
No. 277
Watershed
District
No.3
116.762%
122.905
131.188
130.545
125.042
112.685
124.037
136.721
124.147
106.057
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Taxpayer
Two S Properties
Minnetonka Country Club
James C. Akins
First State Bank of Excelsior
Waterford Partners LLC
Shorewood Village Shopping Center, Inc.
Thomas J. & Cynthia J. Redmond
Jack & Gretchen Norqual
Russell & Luaina Hagen
Steven R. Litman Trustee
Total
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CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL T AXP AYERS
DECEMBER 31, 2001
Table 6
Type of Business
2001
Tax
Capacity
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ResidentiaVCommercial
Commercial
Residential
Commercial
Commercial
Commercial
Residential
Vacant LandILakeshore
Residential
Residential
$ 89,508
45,100
45,425
39,250
47,250
41,250
31,456
26,018
24,875
31,286
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$ 421.428
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Fiscal
Year
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
$ 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
138,271 133,808 96.78 20,195 154,003 111.38
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 2001
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Table 8
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Market Value
$738.345.500
Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
$ 14,766,910
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Total Bonded Debt
Less, (Note B)
Improvement Bonds
General Obligation Revenue Bonds
Total Debt Applicable to Debt Limit
$ 2,070,000
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(155,000)
(1.915.000)
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Legal Debt Margin
$ 14.766.910
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Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75, no municipality, except a school district or I
a city of the first class, shall incur or be subject to a net debt in excess of 2.0 percent of the market value of taxable property in the
municipality. "
Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid)
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"Subdivision 2. Not included in net debt of municipality for purpose of any statutory or charter limitation. Obligations issued
here under may be authorized by resolution of the governing body without authorization by the electors, and shall not be included
in the net debt of the municipality for the purpose of any statutory or charter limitation on indebtedness."
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M.S.A. Section 475.51 (Definitions:)
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"Subdivision 4. Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the
following:
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(1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied
upon property specially benefited thereby, including those which are general obligations of the municipality issuing them,
if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments.
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(2) Warrants or orders having no definite or fixed maturity.
(3)
Obligations payable wholly from the income from revenue-producing conveniences.
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(4)
Obligations issued to create or maintain a permanent improvement revolving fund.
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(5)
Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or
power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be
derived.
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(6)
Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other
than those deductible under this subdivision.
(7)
All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in
computing the net debt of the municipality."
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*
After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24.
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CITY OF SHOREWOOD, MINNESOTA Table 9
RATIO OF NET BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Ratio of
Less Net Bonded
Amount Debt to
(1) Reserved Assessed Net
Gross for Net Values/ Bonded
Fiscal Estimated Tax Bonded Debt Bonded Tax Debt
Year Population Capacity Debt Service Debt Capacity Per Capita
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 .3404:1 456.12
1997 6889 9,755,522 3,335,000 478,192 2,856,808 .2928:1 414.69
1998 6955 9,700,603 3,015,000 424,978 2,590,022 .2670: 1 372.40
1999 7008 9,489,865 2,700,000 376,643 2,323,357 .2448:1 331.53
2000 7400 10,218,346 2,380,000 303,858 2,076,142 .2032:1 280.55
2001 7400 11,344,958 2,070,000 231,421 1,838,579 .1621: 1 248.46
(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.
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CITY OF SHOREWOOD, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES*
Table 10
Total Percent of
Total General Debt Service
Debt Fund to General
Year Principal Interest Service Expenditures * Expenditures
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
2001 125,000 11,777 136,777 3,073,887 4.45
(1)
Excludes G.O. Bonds reported in Enterprise Funds.
(2)
Principal included bonds called in 1994
(3)
Principal included bonds called in 1996
*
Includes General Fund only
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2001
Table 11
Gross Amount
Bonded of
Debt Used Percentage Net Debt
For Net Debt Net Applicable Applicable
Calculation Debt District to District
Direct Debt*
City of Shorewood $ 2.070.000 $ 1.838.579 100.00% $ 1.838.579
Overlapping Debt
Hennepin County $279,820,000 $278,091,118 1.02 $ 2,836,529
Hennepin Suburban Park District 31,425,000 27,087,334 1.35 365,679
School District #276 50,005,000 26,533,480 23.14 6,139,847
School District #277 11,550,000 9,963,640 1.92 191,302
Metropolitan Council 176,315,000 141,032,000 .49 691,057
Hennepin County RR Authority 50.000.000 50.000.000 ---1:..Q2 510.000
Total Overlapping Debt $599.115.000 $532.707.572 28.94% $ 10.734.414
Total Direct and Overlapping Debt $601.185.000 $534.546.151 128.94% $ 12.572.993
*
Direct debt includes all debt backed by the full faith and credit of the City even though it will be financed in part by special
assessments or enterprise fund revenues.
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Ratio
of Net
Net Revenue to
Fiscal Gross (1) Revenue Debt Service Debt
Year Revenue Expenses Available Principal Interest Total Service
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
2001 398,555 209,332 189,223 185,000 99,739 284,739 .6646 to 1
(1) Excluding depreciation and interest on bonds
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
Table 13
(1)
Commercial (1)
Construction Residential Construction (2)
Fiscal Number Property Value
Year Value of Units Value Commercial Residential Total
1992 $ 55 $ 10,899,687 $ 12,081,200 $ 370,575,700 $382,656,900
1993 102 17,941,776 11,307,900 391,057,000 402,364,900
1994 960,000 86 16,530,925 11,338,700 413,780,300 425,119,000
1995 2,030,000 40 10,167,210 9,793,000 453,616,100 463,409,100
1996 1,350,000 37 9,393,436 10,562,200 517,983,900 528,546,100
1997 695,000 41 11,825,463 13,034,900 542,674,600 555,709,500
1998 1,317,000 35 9,563,920 14,572,900 580,878,400 595,451,350
1999 39 10,673,841 18,097,200 607,425,000 625,522,200
2000 428,000 71 12,151,100 17,487,100 668,078,300 685,565,400
2001 34 11,451,098 21,243,000 774,394,300 795,637,300
Sources
(1)
(2)
City Planning and Inspection Department
County Assessor's Office
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CITY OF SHOREWOOD, MINNESOTA
MISCELLANEOUS STATISTICS
DECEMBER 31, 2001
Table 14
Year of incorporation
Form of government
1956
Council-Administrator
Adopted May 14, 1956
January 1
6.0 Square Miles
Fiscal year begins
Area of city
Population
2000 Census
1990 Census
1980 Census
1970 Census
7,400
5,917
4,646
4,223
Miles of streets and alleys
City streets
Municipal state aid streets
County roads
State highway
41
9.8
1.7
2.7
Sewer
Lift stations
Sewer rates - residential
Miles of sewer lines
14
$60.00/quarter
56.2
Number of street lights
177
Building permits issued in 2001
Number of permits
Value
1,341
$30,679,334
I Fire protection: Contracted services with Mound and the Excelsior Fire District
Police protection: Contracted services with South Lake Minnetonka Police Department
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Parks
Number
Acres
5
95.8
Water
Number of connections
Average daily consumption
Miles of watermain
Daily capacity
Number of fire hydrants
Water rate per thousand gallons
1,195
403,000 gallons
15.2
4,680,000 gallons
165
$1.50/1000 gallons
Employees
Regular
Part-time/seasonal
Total
23
30
53
Elections
Registered voters last election
Number of votes cast last election
Percentage of registered voters voting
4,981
4,521
90.7%
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