2013 Comp. Annual Financial Report
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2013
BILL JOYNES, CITY ADMINISTRATOR
REPORT PREPARED BY
BRUCE DEJONG, FINANCE DIRECTOR/TREASURER
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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INTENTIONALLY
CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Exhibit Page No.
INTRODUCTORY SECTION
Elected and Appointed Officials 2
Organization Chart 3
Letter of Transmittal 5
Certification of Achievement for Excellence in Financial Reporting 10
FINANCIAL SECTION
Independent Auditor’s Report 13
Management’s Discussion and Analysis 15
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 1 29
Statement of Activities 2 30
Fund Financial Statements
Governmental Funds
Balance Sheet 3 34
Reconciliation of the Balance Sheet to the Statement of Net Position 4 37
Statement of Revenues, Expenditures and Changes in Fund Balances 5 38
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances to the Statement of Activities 6 40
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 7 41
Proprietary Funds
Statements of Net Position 8 42
Statements of Revenues, Expenses and Changes in Net Position 9 44
Statements of Cash Flows 10 46
Fiduciary Fund
Statement of Net Position 11 50
Notes to the Financial Statements 51
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet A-1 74
Combining Statement of Revenues, Expenditures and Changes in Fund Balances A-2 75
Nonmajor Capital Projects Funds
Combining Balance Sheet B-1 78
Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 79
Nonmajor Proprietary Funds
Combining Statements of Net Position C-1 82
Combining Statements of Revenues, Expenses and Changes in Net Position C-2 84
Combining Statements of Cash Flows C-3 86
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual D-1 88
Debt Service Funds
Combining Balance Sheet E-1 92
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances E-2 93
Agency Fund
Combining Schedule of Changes in Assets and Liabilities F-1 94
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds G-1 95
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CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2013
Table Page No.
STATISTICAL SECTION (UNAUDITED)
Net Position by Component 1 100
Changes in Net Position 2 102
Fund Balances of Governmental Funds 3 106
Changes in Fund Balances of Governmental Funds 4 108
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 110
Property Tax Capacity Rates - Direct and Overlapping Governments 6 112
Principal Taxpayers 7 114
Property Tax Levies and Collections 8 115
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 9 116
Computation of Direct and Overlapping Debt 10 117
Legal Debt Margin Information 11 118
Pledged-Revenue Coverage 12 120
Demographic and Economic Statistics 13 121
Principal Employers 14 122
Full-Time Equivalent City Government Employees by Function 15 123
Operating Indicators by Function 16 124
Capital Asset Statistics by Function 17 125
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INTRODUCTORY SECTION
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
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CITY OF SHOREWOOD, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2013
Name Title Term Expires
Scott Zerby Mayor 12/31/14
Richard Woodruff Council Member 12/31/16
Laura Hotvet Council Member 12/31/14
Debbie Siakel Council Member 12/31/14
Kristine Sundberg Council Member 12/31/16
Name Title
Bill Joynes City Administrator
Bruce DeJong Finance Director/Treasurer
ELECTED
APPOINTED
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City of Shorewood Organizational Chart
Residents
Council
Administrator
Advisory Boards
Plan Commission
Park Commission
Joint Powers Agencies
Police
Fire
LMCD
LMCC
Plan/Zone DirFinance Dir City Clerk Pub Works Dir
Planning
Asst
Contracted Services
IT/Phones
Mound Fire
Assessor
Recycling
Community Center
Attorney
Engineer
Bldg
Official
Recep-
tionist
Comm
Coord
Park/Rec
Coord
Utiliites
Parks
Maint.
Streets
Sr
Acct
Clerk
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June 24, 2014
Honorable Mayor and Members of the City Council,
City of Shorewood, Minnesota
Mayor and City Council Members:
The Comprehensive Annual Financial Report of the City of Shorewood, Minnesota, for the fiscal year
ended December 31, 2013, is hereby submitted. The report was prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP) as established by the
Governmental Accounting Standards Board and meets the requirements of the Office of State Auditor.
The report consists of management’s representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of the information presented
in this report. To provide a reasonable basis for making these representations, management of the City
has established internal controls designed to protect the City’s assets from loss, theft, or misuse, and to
provide sufficient information for the preparation of these financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh the benefits, the City’s internal
controls have been designed to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements. As management, we assert that to the best of our
knowledge and belief this financial report is complete and reliable in all material respects.
The City of Shorewood’s financial statements have been audited by the firm of Abdo, Eick & Meyers,
LLP, Certified Public Accountants. The goal of the audit was to provide reasonable assurance that the
financial statements of the City for the year ended December 31, 2013, are free of material misstatement.
The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates
used by management; and evaluating the overall financial statement presentation. Based upon the audit,
the independent auditor concluded that there was reasonable basis for rendering an unqualified opinion
that the City’s financial statements, for the year ended December 31, 2013, are fairly presented in
conformity with GAAP. The independent auditor's report is presented at the front of the financial section
of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The
City’s MD&A can be found in the financial section of this report immediately following the independent
auditor’s report.
CITY OF
SHOREWOOD
5755 Country Club Road Shorewood, Minnesota 55331 952-960-7900
Fax: 952-474-0128 www.ci.shorewood.mn.us cityhall@ci.shorewood.mn.us
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City Profile
The City of Shorewood is a suburban community located southwest of the Twin Cities on the southern
shore of Lake Minnetonka, a setting of rolling hills and picturesque lakes and creeks. Shorewood has a
convenient location, a comprehensive system of highways, and is a short distance from downtown
Minneapolis and St. Paul and the Minneapolis-St. Paul International Airport. The City is predominantly
a residential community with limited commercial businesses and two commercial shopping malls. The
City is 6 square miles in area and had an estimated population of 7,438 as of 2013. The City, which is
currently 95% developed, continues to experience some growth in its residential base but, because of the
limited availability of large tracts of land, this growth will come slowly through small developments such
as the Ashland Woods subdivision.
Incorporated in 1956 as a village, the City of Shorewood operates under the Council-Administrator form
of government. Policy making and legislative authority are vested in a governing council consisting of
the mayor and four-member council, elected on a non-partisan basis. Council members serve four-year
staggered terms, with two council members elected every two years. The mayor is elected to serve a two-
year term. The City Administrator is responsible for overseeing the day-to-day operations of the
government, and to assign responsibility to City staff for the efficient and effective delivery of City
services.
The Economic Development Authority (EDA) of the City was created in 2001 pursuant to Minnesota
Statutes to carry out economic and industrial development and redevelopment consistent with policies
established by the Council. Its board is comprised of members of the City Council. The EDA activities
are blended and separate financial statements are not issued for this component unit.
The City provides its residents and businesses with a broad range of municipal services consisting of
police and fire protection, street maintenance, recreation programs, park maintenance, community and
economic development, and administrative services, including building inspections. During 2013, the
City operated four enterprises: a water utility, sanitary sewer, recycling, and storm water management
utilities.
Economic Conditions and Outlook
Governance
The City Council, in its leadership role, has effectively established a focus for government in Shorewood
and has established overall goals and expectations for the City. The Council’s calendar consists of three
phases. The first phase is planning. It includes review of the previous year’s work plan and identifies
goals and priorities for the next twelve months.
The second phase is capital finance planning; each year the ten-year Capital Improvement Program is
reviewed and updated based upon priorities established in the first phase. Those projects are then
incorporated into a financial management plan that includes both operating and capital spending plans to
determine the overall feasibility of the plans and the effect of that proposed spending level on fund
balances and tax levies necessary to support that level investment.
The third phase is budgeting; the annual operating budget is developed based on decisions made in the
first two phases. The annual budget serves as the foundation of the City of Shorewood’s financial
planning and control. Departments submit budget requests to Finance in July and the City Administrator
presents the proposed budget to the City Council for review. Budget work-sessions are held with the
City Council in July and August. The City Council adopts a preliminary budget and tax levy prior to
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September 15th of each year. After individualized property tax estimates are mailed to all properties in
November, the City Council holds a Truth-in-Taxation public hearing on the proposed budget and adopts
the final budget in December each year.
The budget is prepared by fund and function. The City’s department directors develop their budgets,
with subsequent review and input from the City Administrator and Finance Director. Any changes in the
overall budget must be approved by the City Council.
Cooperative Public Service Delivery
Shorewood is committed to working cooperatively with other Lake Minnetonka area cities to carefully
consider methods to efficiently deliver public services. The City has various contractual arrangements
with other governmental jurisdictions and with private entities for providing many of these services. The
City is also involved in cooperative employee training, disaster preparedness and other areas of mutual
concern as an active participant in the Lake Minnetonka area.
The City has been a member city of the South Lake Minnetonka Police Department (SLMPD) since its
inception in 1973. The other members of this joint powers organization are the cities of Excelsior,
Greenwood, and Tonka Bay.
The City of Shorewood, along with the cities of Deephaven, Excelsior, Greenwood, and Tonka Bay, has
been a member of the Excelsior Fire District since 2000. The Excelsior Fire District is a joint powers
organization. A combined police and fire public safety building that serves the South Lake Minnetonka
Area cities was completed in late 2003.
The City of Shorewood, along with the cities of Deephaven, Excelsior, Greenwood, and Tonka Bay, hold
title to the Southshore Center, a community center used by senior citizens and community groups for
activities, meetings, festivals. The City of Shorewood operated the Southshore Community Center for
the entire year of 2013. The Center was built in the late 1990s as a joint venture by the following five
Lake Minnetonka Area Cities: Shorewood, Excelsior, Tonka Bay, Deephaven, and Greenwood. Until
recently, the Center was leased to an organization that emphasized senior programming. Many of the
senior-oriented programs still remain during the day, and these are a critical component, but Center
renovations were made to attract new renters, including businesses, community education classes, and
wedding, birthday, and graduation parties. Shorewood has committed to operate the center through
December, 2015 by the renewal of an automatic three year extension. New programs have been
developed to attract all ages. The Southshore Center’s long range options are being evaluated by a
committee of the South Shore Senior Partners and other interested parties.
The City contracts with Hennepin County for property assessment services. The Hennepin County
Assessor analyzes property sales information, sets taxable values, and handles the valuation appeal
process.
Debt Administration
As of December 31, 2013, the City's debt outstanding totaled $12,380,000. Of this total, $3,540,000 is
General Obligation Water Revenue bonds issued in 2006 and 2013. The proceeds from these bonds
financed water system extensions and improvements and will be repaid from special assessments and
water rate revenues.
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The remaining outstanding debt balance of $8,840,000 is EDA Lease Revenue Advance Refunding bonds
issued in 2007 for the public safety buildings and EDA Lease Revenue bonds issued in 2008 for
remodeling City Hall. These bonds will be repaid from lease payments from the Excelsior Fire District,
South Lake Minnetonka Police Department, and the City of Shorewood.
The City of Shorewood’s bond rating was upgraded to Aa2 from Aa3 in July, 2008, by Moody’s
Investors Service. At that time, Moody’s also upgraded the Shorewood Economic Development
Authority (EDA) bond rating to Aa3 from A1, based upon the City’s pledge to make the lease payments
subject to annual appropriation in the City’s operating budget, and the fact that a city hall facility is an
essential part of a municipality.
Long-term Financial Planning
The City has implemented various financial/budgetary policies to guide the City Council and staff when
making financial decisions to ensure the long-term stability and flexibility of City finances and
operations. These policies include the following:
The original budget should be balanced with revenues equal to expenditures.
By policy, the City Council has set the fund balance level in the General Fund 55-60% of the
next years’ expenditure budget including transfers. This policy ensures the long-term economic
stability of the organization by providing adequate working capital given the periodic nature of
tax receipts and by providing for unexpected shortfalls or emergencies. In accordance with this
policy, the City Council may use up to 3% of any General Fund reserves in excess of 60% to
reduce the budgeted tax levy, or for one-time projects, or transfer to any of the city’s capital
funds.
The City will maintain a ten-year capital improvement plan to provide for capital asset
acquisition, maintenance, replacement, and retirement.
The City will continue to accumulate resources for future capital equipment and improvement
projects with operating transfers to various capital project funds in 2013. Budgeted transfers
from the General Fund for 2013 were $962,650.
Major Initiatives
The City began a program of trail improvements in 2013 which included a segment linking Shorewood to
the Three Rivers Regional Trail along County Road 19 and a trail along the south side of Smithtown
Road from Eureka Road North to the western border of the city which links to the City of Victoria’s trail
system. Additional trail segments are planned for Galpin Lake Road, Excelsior Boulevard, and
Smithtown Road east of Eureka Road North.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Shorewood for its
comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2012.
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The Certificate of Achievement is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local govemment financial reports. In order to be awarded a
Certificate of Achievement, a government unit must publish an easily readab le and efficiently organized
comprehensive annual fin ancial report whose contents conform to program standards. Such
comprehensive annual financial report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. The City of Shorewood has received a
Cettificate of Achievement for the past e ighteen consecutive years. We believe our current repott
continues to conform to the Certificate of Achievement program requ irements, and we are submitting it
to the GFOA to determine its eligibility for another certificate.
Acknowled gments
We would like to express our appreciation to the employees of the Administration, Finance, Planning,
and Public Works departments for their contribution to the preparation of this repmt. We would also like
to thank the Mayor and Council members for their continued support in planning and conducting the
financial operations of the C ity in a responsible and prudent manner.
Respectfully submitted ,
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FINANCIAL SECTION
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Shorewood, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Shorewood, Minnesota (the City), as of and for the year ended
December 31, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements
as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. The prior year comparative information has
been derived from the City’s 2012 financial statements and, in our report dated June 24, 2013 we express unmodified opinions on the
respective proprietary fund financial statements. We conducted our audit in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of
December 31, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary
comparison for the General fund for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis
starting on page 19 be presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic
financial statements as a whole. The introductory section, combining and individual fund financial statements and schedules, and
statistical section are presented for purposes of additional analysis and are not a required part of the financial statements.
The combining and individual fund financial statements and schedules are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation
to the financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
ABDO, EICK & MEYERS, LLP
Minneapolis, Minnesota
June 24, 2014
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Management’s Discussion and Analysis
As management of the City of Shorewood, Minnesota, (the City), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2013.
Financial Highlights
• The assets of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by
$31,008,388 (net position). Of this amount, $15,090,066 (unrestricted net position) may be used to meet the City’s ongoing
obligations to residents and creditors.
• The City’s total net position decreased $100,393, which is due to expenses in excess of revenues in governmental activities.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$7,215,873 , a decrease of $869,694 in comparison with the prior year. This decrease is primarily the result of capital
expenditures in capital project funds. Approximately 53.9 percent of this total amount, $3,890,905, is unassigned and
available for spending at the City’s discretion.
• At the end of the current fiscal year, unassigned fund balance for the General fund was $3,943,342, or 91.2 percent of total
2013 expenditures. The City has a policy to maintain a General fund working capital balance of 55.0 - 60.0 percent of
expenditures and transfers.
• The City’s total debt increased $367,963, or 3.0 percent during the current fiscal year. The key factor in this increase was the
issuance of crossover refunding bonds. The new bonds refunded the G.O. Revenue Bonds of 2005 during 2013; however, the
G.O. Water Revenue Bonds of 2006 will not be paid off until 2014. The issuance of the refunding bonds is offset by regularly
scheduled principal and interest payments.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial
statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves.
Figure 1 illustrates how the required parts of this annual report are arranged and relate to one another. In addition to these required
elements, we have included a section with combining and individual fund financial statements and schedules that provide details about
nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements.
Figure 1
Required Components of the
City’s Annual Financial Report
Management's
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-
wide Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Summary Detail
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Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and
the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the
structure and contents of each of the statements.
Figure 2
Major features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City government
(except fiduciary funds) and
the City’s component units
The activities of the City that
are not proprietary or
fiduciary, such as police, fire
and parks
Activities the City operates
similar to private businesses,
such as the water and sewer
system
Required financial
statements
• Statement of Net
Position
• Statement of Activities
• Balance Sheet
• Statement of Revenues,
Expenditures, and
Changes in Fund
Balances
• Statements of Net
Position
• Statements of Revenues,
Expenses and Changes in
Fund Net Position
• Statements of Cash
Flows
Accounting Basis and
measurement focus
Accrual accounting and
economic resources focus
Modified accrual accounting
and current financial
resources focus
Accrual accounting and
economic resources focus
Type of asset/liability
information
All assets and liabilities, both
financial and capital, and
short-term and long-term
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
All assets and liabilities, both
financial and capital, and
short-term and long-term
Type of deferred
outflows/inflows of
resources information
All deferred
outflows/inflows of
resources, regardless of
when cash is received or paid
Only deferred outflows of
resources expected to be
used up and deferred inflows
of resources that come due
during the year of son
thereafter; no capital assets
included
All deferred
outflows/inflows of
resources, regardless of
when cash is received or paid
Type of in flow/out flow
information
All revenues and expenses
during year, regardless of
when cash is received or paid
Revenues for which cash is
received during or soon after
the end of the year;
expenditures when goods or
services have been received
and payment is due during
the year or soon thereafter
All revenues and expenses
during the year, regardless of
when cash is received or paid
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad
overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation, and interest on long-term debt. The business-type activities of the
City include water, sewer, recycling, and stormwater management utility.
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The government-wide financial statements include not only the City itself (known as the primary government), but also a legally
separate Economic Development Authority (EDA) for which the City is financially accountable. The EDA, although legally separate,
functions for all practical purposes as a department of the City, and therefore has been included as an integral part of the primary
government.
The government-wide financial statements start on page 29 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities
in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact by the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 12 individual governmental funds, four of which are Debt Service funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances
for the General, Debt Service, Street Reconstruction, and Trail Reconstruction funds, which are considered to be major funds. Data
from the other five governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these
nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report.
The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the
General fund to demonstrate compliance with this budget.
The basic governmental fund financial statements start on page 34 of this report.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented
as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer,
recycling, and stormwater management utility.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The
proprietary fund financial statements provide separate information for each of the enterprise funds. The Water and Sewer funds are
considered to be major funds of the City, while the Recycling and Stormwater management utility funds are combined into a single,
aggregated column in the basic financial statements. Individual fund data for each of these nonmajor proprietary funds is provided in
the form of combining statements or schedules elsewhere in this report.
The basic proprietary fund financial statements start on page 42 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds
are not reflected in the government-wide financial statements because the resources of those funds are not available to support the
City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on page 50 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements start on page 51 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented
following the notes to the financial statements. Combined and individual fund financial statements and schedules starts on page 74 of
this report.
-18-
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City,
assets exceeded liabilities and deferred inflows of resources by $31,008,388 at the close of the most recent fiscal year.
Of the City’s net position 51.3 percent reflects its investment in capital assets (e.g., land, buildings, machinery and equipment), less
any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
City of Shorewood’s Summary of Net Position
Increase RestatedIncrease
20132012 (Decrease)20132012 (Decrease)
Assets
Cash and
temporary investments 6,707,144$ 7,593,686$ (886,542)$ 7,240,221$ 7,452,376$ (212,155)$
Cash with fiscal agent - - - 1,422,314 235,245 1,187,069
Receivables 8,553,567 8,997,619 (444,052) 642,785 615,851 26,934
Prepaids 33,016 50,000 (16,984) - - -
Land held for resale 150,068 150,068 - - - -
Capital assets 10,302,415 9,627,162 675,253 8,965,907 8,994,076 (28,169)
Total assets 25,746,210 26,418,535 (672,325) 18,271,227 17,297,548 973,679
Liabilities
Noncurrent liabilities 9,024,725 9,696,762 (672,037) 3,540,000 2,500,000 1,040,000
Other liabilities 370,223 255,241 114,982 74,101 155,299 (81,198)
Total liabilities 9,394,948 9,952,003 (557,055) 3,614,101 2,655,299 958,802
Net position
Net investment in capital assets 9,212,415 8,487,162 725,253 6,705,907 6,494,076 211,831
Unrestricted 7,138,847 7,979,370 (840,523) 7,951,219 8,148,173 (196,954)
Total net position 16,351,262$ 16,466,532$ (115,270)$ 14,657,126$ 14,642,249$ 14,877$
Governmental Activities Business-type Activities
The balance of unrestricted net position is $15,090,066. This may be used to meet the City’s ongoing obligations to citizens and
creditors.
-19-
Governmental activities. Governmental activities decreased the City’s net position by $115,270. Key elements of this decrease are
as follows:
City of Shorewood’s Changes in Net Position
Increase RestatedIncrease
20132012 (Decrease)20132012 (Decrease)
Revenues
Program revenues
Charges for services 908,458$ 832,626$ 75,832$ 1,732,696$ 1,940,551$ (207,855)$
Operating grants
and contributions 144,112 102,959 41,153 25,830 23,007 2,823
Capital grants
and contributions - - - 53,200 22,400 30,800
General revenues
Property taxes 4,768,989 4,761,213 7,776 - - -
Grants and contributions
not restricted to
specific programs 5,818 6,019 (201) - - -
Unrestricted investment
earnings 37,461 61,584 (24,123) 32,913 64,135 (31,222)
Gain on sale of capital assets 76,981 - 76,981 - - -
Total revenues 5,941,819 5,764,401 177,418 1,844,639 2,050,093 (205,454)
Expenses
General government 1,310,296 1,331,286 (20,990) - - -
Public safety 2,010,338 1,947,868 62,470 - - -
Public works 1,884,986 2,162,123 (277,137) - - -
Culture and recreation 471,784 460,879 10,905 - - -
Interest on long-term debt 379,685 428,887 (49,202) - - -
Water - - - 693,193 689,205 3,988
Sewer - - - 847,097 1,065,926 (218,829)
Recycling - - - 181,537 187,713 (6,176)
Stormwater management utility - - - 107,935 273,846 (165,911)
Total expenses 6,057,089 6,331,043 (273,954) 1,829,762 2,216,690 (386,928)
Change in net position (115,270) (566,642) 451,372 14,877 (166,597) 181,474
Net position, January 1 16,466,532 17,033,174 (566,642) 14,642,249 14,808,846 (166,597)
Net position, December 31 16,351,262$ 16,466,532$ (115,270)$ 14,657,126$ 14,642,249$ 14,877$
Governmental Activities Business-type Activities
-20-
The following graph depicts various governmental activities and shows the revenue and expenses directly related to those activities.
Expenses and Program Revenues - Governmental Activities
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
General government Public safety Public works Culture and
recreation
Interest on long-term
debt
Expenses Program revenues
Revenues by Source - Governmental Activities
Charges for services
15.5%
Operating grants and
contributions
2.5%
Property taxes
81.3%
Grants and
contributions not
restricted to specific
programs
0.6%
Unrestricted
investment earnings
0.1%
-21-
Business-type activities. Business-type activities increased the City’s net position by $14,877.
Expenses and Program Revenues - Business-type Activities
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Water Sewer Recycling Stormwater management
utility
Expenses Program revenues
Revenues by Source - Business-type Activities
Charges for services
93.9%
Operating grants and
contributions
1.4%
Capital grants and
contributions
2.9%
Unrestricted
investment earnings
1.8%
-22-
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and
balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $7,215,873, a
decrease of $869,694 in comparison with the prior year. Approximately 54 percent of this total amount, $3,890,905 constitutes
unassigned fund balance, which is available for spending at the City’s discretion. The remaining fund balance is made up of the
following: 1) Nonspendable ($183,084), 2) Restricted ($24,450), and 3) Assigned ($3,117,434).
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund was
$3,976,358. As a measure of the General fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund
balance to total fund expenditures. Total fund balance represents 91.2 percent of same year fund expenditures.
The fund balance of the City’s General fund increased $351,890 during the current fiscal year.
The Debt Service fund has a total fund balance of $24,450, all of which is restricted for the payment of debt service. The increase in
fund balance of $6,750 was in line with the City’s debt service financing plan.
The Street Reconstruction fund has a fund balance of $2,143,328. The fund balance increased by $382,991 during the current fiscal
year due to a transfer in of $714,000, which exceeded expenditures.
The Trail Construction fund has a fund balance of ($52,437). The fund balance decreased $17,861 during the current fiscal year due
to an excess of expenditures over operating transfers in.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. Unrestricted net position of the enterprise funds at the end of the year amounted to $7,951,219. The
total increase in net position for the funds was $14,877. Other factors concerning the finances of this fund have already been
addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
The City’s General fund budget was amended during the year. The original budget called for the planned use of General fund reserves
in the amount of $103,248 while the amended budget called for the planned use of $104,248 of General fund reserves. Revenues were
over budget by $99,157, and expenditures were under budget by $83,799. The actual amounts were different from the final budget
amounts because of the following:
• The largest revenue variance was in licenses and permits, which were over budget by $80,400. The next largest revenue
variance was in interest on investments, which was under budget by $22,089.
• There were seven departments that experienced a negative budget variance. The largest negative expenditure variance was
related to Mayor and Council which was $18,464 over budget due to other services and charges.
-23-
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2013,
amounts to $19,268,322 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements,
machinery and equipment, park facilities, and roads. Major capital asset events during the current fiscal year included the following:
• Purchase of Elgin sweeper and other equipment
• Sale of property at 5795 Country Club Road
• Disposal of various pieces of equipment
• Improvement work done on lift stations 5 and 6
• Improvements to the Silver Lake Outlet Channel
Additional information on the City’s capital assets can be found in Note 3B starting on page 62 of this report.
City of Shorewood’s Capital Assets
(net of depreciation)
Increase Increase
20132012 (Decrease)20132012 (Decrease)
Land 741,826$ 741,826$ -$ 434,113$ 434,113$ -$
Construction in progress 1,565,510 - 1,565,510 - 63,931 (63,931)
Buildings 2,015,401 2,339,814 (324,413) - - -
Improvements other than buildings 287,368 325,942 (38,574) - - -
Infrastructure 4,904,016 5,505,295 (601,279) 8,531,794 8,491,701 40,093
Machinery and equipment 788,294 714,285 74,009 - 4,331 (4,331)
Total 10,302,415$ 9,627,162$ 675,253$ 8,965,907$ 8,994,076$ (28,169)$
Governmental Activities Business-type Activities
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $12,380,000. Of this amount,
$8,840,000 is lease revenue bonds and $3,540,000 is general obligation revenue bonds. While all of the City’s bonds have dedicated
revenue streams pledged to repayment, the general obligation revenue bonds are all backed by the full faith and credit of the City.
City of Shorewood’s Outstanding Debt
Increase Increase
20132012 (Decrease)20132012 (Decrease)
General obligation
revenue bonds -$ -$ -$ 3,540,000$ 2,500,000$ 1,040,000$
Lease revenue bonds 8,840,000 9,515,000 (675,000) - - -
Compensated absences payable 184,725 181,762 2,963 - - -
Total 9,024,725$ 9,696,762$ (672,037)$ 3,540,000$ 2,500,000$ 1,040,000$
Governmental Activities Business-type Activities
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable
property within the City. Net debt is debt payable solely from ad valorem taxes. Additional information on the City’s long-term debt
can be found in Note 3D starting on page 64 of this report.
-24-
Economic Factors and Next Year’s Budgets and Rates
• The City is experiencing an increase in residential property values, particularly on higher value properties around Lake
Minnetonka, but lower value home prices seem to be trending up in line with the entire region.
• Unemployment trends in the region compare favorably to national indices.
• The 2014 budget was developed to continue using General fund balance to bring the overall balance down to the policy level
while continuing to provide the same basic service levels to the public.
• The property tax levy for the 2014 budget was increased 2 percent from the 2013 budget, the first increase in five years.
All of these factors were taken into account in preparing the City’s budget for the 2013 fiscal year.
During the 2013 fiscal year, the fund balance in the General fund increased by $351,890. This City budgeted a use of fund balance of
$104,248. This planned use of fund balance was in accordance with the Fund Balance Policy adopted by the City Council. The City
Council intends to use proceeds from the sale of the house at 5795 Country Club Road to partially fund improvements to Badger
Park. Other possible uses of available fund balance in excess of the policy level include one-time projects, and transfers to capital
project funds as determined by the City Council.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s
finances. Questions concerning any of the information provided in this report or requests for additional financial information should
be addressed to the City of Shorewood, 5755 Country Club Road, Shorewood, Minnesota 55331.
-25-
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INTENTIONALLY
-26-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
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INTENTIONALLY
-28-
Exhibit 1CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2013
Governmental Business-type
Activities Activities Total
ASSETS
Cash and temporary investments 6,707,144$ 7,240,221$ 13,947,365$
Cash with fiscal agent - 1,422,314 1,422,314
Receivables
Accrued interest 171,494 40,709 212,203
Property taxes 136,967 - 136,967
Accounts 20,172 422,291 442,463
Special assessments - 179,785 179,785
Lease 8,155,959 - 8,155,959
Due from other governments 68,975 - 68,975
Prepaid items 33,016 - 33,016
Land held for resale 150,068 - 150,068
Capital assets
Nondepreciable assets 2,307,336 434,113 2,741,449
Depreciable capital assets, net 7,995,079 8,531,794 16,526,873
TOTAL ASSETS 25,746,210 18,271,227 44,017,437
LIABILITIES
Accounts and contracts payable 170,983 28,293 199,276
Accrued salaries payable 7,892 1,241 9,133
Due to other governments 1,925 2,748 4,673
Accrued interest payable 138,160 41,819 179,979
Unearned revenue 51,263 - 51,263
Noncurrent liabilities
Due within one year 857,922 1,380,000 2,237,922
Due in more than one year 8,166,803 2,160,000 10,326,803
TOTAL LIABILITIES 9,394,948 3,614,101 13,009,049
NET POSITION
Net investment in capital assets 9,212,415 6,705,907 15,918,322
Unrestricted 7,138,847 7,951,219 15,090,066
TOTAL NET POSITION 16,351,262$ 14,657,126$ 31,008,388$
The notes to the financial statements are an integral part of this statement.
-29-
CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2013
Operating Capital Grants
Charges for Grants and and
Expenses Services Contributions Contributions
Governmental activities
General government 1,310,296$ 187,628$ 700$ -$
Public safety 2,010,338 599,810 247 -
Public works 1,884,986 226 100,150 -
Culture and recreation 471,784 120,794 43,015 -
Interest on long-term debt 379,685 - - -
Total governmental activities 6,057,089 908,458 144,112 -
Business-type activities
Water 693,193 537,713 - 40,000
Sewer 847,097 834,320 - 13,200
Recycling 181,537 165,713 25,830 -
Stormwater management utility 107,935 194,950 - -
Total business-type activities 1,829,762 1,732,696 25,830 53,200
Total 7,886,851$ 2,641,154$ 169,942$ 53,200$
General revenues
Taxes
Property taxes, levied for general purposes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Total general revenues
Change in net position
Net position, January 1
Net position, December 31
The notes to the financial statements are an integral part of this statement.
Functions/Programs
Program Revenues
-30-
Exhibit 2
Governmental Business-type
Activities Activities Total
(1,121,968)$ -$ (1,121,968)$
(1,410,281) - (1,410,281)
(1,784,610) - (1,784,610)
(307,975) - (307,975)
(379,685) - (379,685)
(5,004,519) - (5,004,519)
- (115,480) (115,480)
- 423 423
- 10,006 10,006
- 87,015 87,015
- (18,036) (18,036)
(5,004,519) (18,036) (5,022,555)
4,768,989 - 4,768,989
5,818 - 5,818
37,461 32,913 70,374
76,981 - 76,981
4,889,249 32,913 4,922,162
(115,270) 14,877 (100,393)
16,466,532 14,642,249 31,108,781
16,351,262$ 14,657,126$ 31,008,388$
Net (Expense) Revenue and Changes in Net Position
-31-
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INTENTIONALLY
-32-
FUND FINANCIAL STATEMENTS
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
-33-
CITY OF SHOREWOOD, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2013
Debt Street
General Service Reconstruction
ASSETS
Cash and temporary investments 3,942,981$ 10,333$ 2,145,469$
Receivables
Accrued interest 16,604 - 9,452
Taxes 136,967 - -
Accounts 20,172 - -
Lease - 7,750,000 -
Due from other governments 54,858 14,117 -
Prepaid items 33,016 - -
Land held for resale - - -
TOTAL ASSETS 4,204,598$ 7,774,450$ 2,154,921$
LIABILITIES
Accounts and contracts payable 55,521$ -$ 11,593$
Accrued salaries payable 7,784 - -
Due to other governments 1,925 - -
Unearned revenue 51,263 - -
TOTAL LIABILITIES 116,493 - 11,593
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 82,076 - -
Unavailable revenue - lease receivable - 7,750,000 -
Unavailable revenue - grants 29,671 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 111,747 7,750,000 -
FUND BALANCES
Nonspendable
Prepaid items 33,016 - -
Land held for resale - - -
Restricted for debt service - 24,450 -
Assigned to
Street reconstruction - - 2,143,328
Capital outlay - - -
Community center operations - - -
Unassigned 3,943,342 - -
TOTAL FUND BALANCES 3,976,358 24,450 2,143,328
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 4,204,598$ 7,774,450$ 2,154,921$
The notes to the financial statements are an integral part of this statement.
-34-
Exhibit 3
Other Total
Trail Governmental Governmental
Construction Funds Funds
39,561$ 568,800$ 6,707,144$
- 11,326 37,382
- - 136,967
- - 20,172
- 405,959 8,155,959
- - 68,975
- - 33,016
- 150,068 150,068
39,561$ 1,136,153$ 15,309,683$
91,998$ 11,871$ 170,983$
- 108 7,892
- - 1,925
- - 51,263
91,998 11,979 232,063
- - 82,076
- - 7,750,000
- - 29,671
- - 7,861,747
- - 33,016
- 150,068 150,068
- - 24,450
- - 2,143,328
- 973,637 973,637
- 469 469
(52,437) - 3,890,905
(52,437) 1,124,174 7,215,873
39,561$ 1,136,153$ 15,309,683$
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INTENTIONALLY
-36-
Exhibit 4CITY OF SHOREWOOD, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
DECEMBER 31, 2013
Total fund balances - governmental 7,215,873$
Amounts reported for the governmental activities in the statement
of net position are different because
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets 37,183,863
Less: accumulated depreciation (26,881,448)
Long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of
Bonds payable (8,840,000)
Compensated absences payable (184,725)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are reported as unavailable revenue in the funds.
Interest on lease receivable 134,112
Delinquent taxes receivable 82,076
Leases receivable 7,750,000
Grants receivable 29,671
Governmental funds do not report a liability for accrued interest until
due and payable.(138,160)
Total net position - governmental activities 16,351,262$
The notes to the financial statements are an integral part of this statement.
-37-
CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
Debt Street
General Service Reconstruction
REVENUES
Taxes 4,764,472$ -$ -$
Licenses and permits 204,600 - -
Intergovernmental 76,544 - -
Charges for services 50,829 - -
Fines and forfeitures 59,294 - -
Interest on investments 12,911 - 9,013
Miscellaneous 194,477 972,513 -
TOTAL REVENUES 5,363,127 972,513 9,013
EXPENDITURES
Current
General government 1,249,616 - -
Public safety 1,494,633 - -
Public works 852,667 - -
Culture and recreation 209,112 - -
Capital outlay
General government 322 - -
Public safety 515,419 - -
Public works - - 340,022
Culture and recreation - - -
Debt service
Principal - 675,000 -
Interest and service charges - 391,213 -
TOTAL EXPENDITURES 4,321,769 1,066,213 340,022
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,041,358 (93,700) (331,009)
OTHER FINANCING SOURCES (USES)
Transfers in - 100,450 714,000
Sale of capital assets 317,182 - -
Transfers out (1,006,650) - -
TOTAL OTHER FINANCING SOURCES (USES)(689,468) 100,450 714,000
NET CHANGE IN FUND BALANCES 351,890 6,750 382,991
FUND BALANCES, JANUARY 1 3,624,468 17,700 1,760,337
FUND BALANCES, DECEMBER 31 3,976,358$ 24,450$ 2,143,328$
The notes to the financial statements are an integral part of this statement.
-38-
Exhibit 5
Other Total
Trail Governmental Governmental
Construction Funds Funds
-$ -$ 4,764,472$
- - 204,600
- - 76,544
- 41,720 92,549
- - 59,294
- 15,537 37,461
- 67,322 1,234,312
- 124,579 6,469,232
- - 1,249,616
- - 1,494,633
- 7,404 860,071
11,109 104,524 324,745
- - 322
- - 515,419
- 265,739 605,761
1,482,752 56,576 1,539,328
- - 675,000
- - 391,213
1,493,861 434,243 7,656,108
(1,493,861) (309,664) (1,186,876)
1,476,000 192,200 2,482,650
- - 317,182
- (1,476,000) (2,482,650)
1,476,000 (1,283,800) 317,182
(17,861) (1,593,464) (869,694)
(34,576) 2,717,638 8,085,567
(52,437)$ 1,124,174$ 7,215,873$
-39-
Exhibit 6CITY OF SHOREWOOD, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
Total net change in fund balances - governmental funds (869,694)$
Amounts reported for governmental activities in the statement
of activities are different because
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 1,888,397
Depreciation expense (972,943)
The statement of activities reports gains arising form the trade-in of existing capital assets to acquire
new capital assets. Conversely the governmental funds do not report any gain or loss on a trade-
in of capital assets.(240,201)
The issuance of long-term debt provides current financial resources to governmental funds, while
the repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the statement of activities.
Principal repayments 675,000
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however
interest expense is recognized as the interest accrues, regardless of when it is due.11,528
Certain revenues are recognized as soon as it is earned. Under the modified accrual
basis of accounting certain revenues cannot be recognized until they are available
to liquidate liabilities of the current period.
Delinquent taxes 4,517
Special assessments (2,210)
Leases (636,372)
Grants 29,671
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Compensated absences (2,963)
Change in net position - governmental activities (115,270)$
The notes to the financial statements are an integral part of this statement.
-40-
Exhibit 7CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2013
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 4,763,319$ 4,763,319$ 4,764,472$ 1,153$
Licenses and permits 124,200 124,200 204,600 80,400
Intergovernmental 70,401 70,401 76,544 6,143
Charges for services 35,150 35,150 50,829 15,679
Fines and forfeitures 57,000 57,000 59,294 2,294
Interest on investments 35,000 35,000 12,911 (22,089)
Miscellaneous 178,900 178,900 194,477 15,577
TOTAL REVENUES 5,263,970 5,263,970 5,363,127 99,157
EXPENDITURES
Current
General government 1,233,511 1,233,511 1,249,616 (16,105)
Public safety 1,490,747 1,490,747 1,494,633 (3,886)
Public works 944,256 944,256 852,667 91,589
Culture and recreation 211,574 212,574 209,112 3,462
Capital outlay
General government 200 200 322 (122)
Public safety 523,080 523,080 515,419 7,661
Public works 1,200 1,200 - 1,200
TOTAL EXPENDITURES 4,404,568 4,405,568 4,321,769 83,799
EXCESS OF REVENUES
OVER EXPENDITURES 859,402 858,402 1,041,358 182,956
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - 317,182 317,182
Transfers out (962,650) (962,650) (1,006,650) (44,000)
TOTAL OTHER FINANCING
SOURCES (USES)(962,650) (962,650) (689,468) 273,182
NET CHANGE IN FUND BALANCES (103,248) (104,248) 351,890 456,138
FUND BALANCES, JANUARY 1 3,624,468 3,624,468 3,624,468 -
FUND BALANCES, DECEMBER 31 3,521,220$ 3,520,220$ 3,976,358$ 456,138$
The notes to the financial statements are an integral part of this statement.
Budgeted Amounts
-41-
CITY OF SHOREWOOD, MINNESOTA
STATEMENTS OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
ASSETS
CURRENT ASSETS
Cash and temporary investments 3,805,301$ 3,810,729$ 3,233,275$ 3,514,714$
Cash with fiscal agent 1,422,314 235,245 - -
Receivables
Accrued interest 21,279 15,633 18,349 14,549
Accounts 102,288 108,743 225,725 220,760
Special assessments 3,604 2,813 6,106 4,823
TOTAL CURRENT ASSETS 5,354,786 4,173,163 3,483,455 3,754,846
NONCURRENT ASSETS
Special assessments receivable 128,623 116,248 25,937 23,394
Capital assets
Land - - - -
Construction in progress - - - 63,931
Machinery and equipment 39,869 39,869 43,385 43,385
Infrastructure 9,944,664 9,944,664 9,105,084 8,776,827
Less accumulated depreciation (4,253,010) (3,981,844) (7,428,531) (7,381,505)
NET CAPITAL ASSETS 5,731,523 6,002,689 1,719,938 1,502,638
TOTAL NONCURRENT ASSETS 5,860,146 6,118,937 1,745,875 1,526,032
TOTAL ASSETS 11,214,932 10,292,100 5,229,330 5,280,878
LIABILITIES
CURRENT LIABILITIES
Accounts and contracts payable 6,815 18,314 13,108 82,108
Accrued salaries payable 368 - 804 -
Due to other governments 432 874 2,316 283
Accrued interest payable 41,819 49,820 - -
Bonds payable - current 1,380,000 185,000 - -
TOTAL CURRENT LIABILITIES 1,429,434 254,008 16,228 82,391
NONCURRENT LIABILITIES
Bonds payable 2,160,000 2,315,000 - -
TOTAL LIABILITIES 3,589,434 2,569,008 16,228 82,391
NET POSITION
Net investment in capital assets 3,471,523 3,502,689 1,719,938 1,502,638
Unrestricted 4,153,975 4,220,403 3,493,164 3,695,849
TOTAL NET POSITION 7,625,498$ 7,723,092$ 5,213,102$ 5,198,487$
The notes to the financial statements are an integral part of this statement.
601 611
SewerWater
Business-type Activities - Enterprise Funds
-42-
Exhibit 8
2013 2012 2013 2012
201,645$ 126,933$ 7,240,221$ 7,452,376$
- - 1,422,314 235,245
1,081 854 40,709 31,036
94,278 93,770 422,291 423,273
2,702 2,490 12,412 10,126
299,706 224,047 9,137,947 8,152,056
12,813 11,774 167,373 151,416
434,113 434,113 434,113 434,113
- - - 63,931
- - 83,254 83,254
1,352,076 1,292,577 20,401,824 20,014,068
(271,743) (237,941) (11,953,284) (11,601,290)
1,514,446 1,488,749 8,965,907 8,994,076
1,527,259 1,500,523 9,133,280 9,145,492
1,826,965 1,724,570 18,271,227 17,297,548
8,370 3,900 28,293 104,322
69 - 1,241 -
- - 2,748 1,157
- - 41,819 49,820
- - 1,380,000 185,000
8,439 3,900 1,454,101 340,299
- - 2,160,000 2,315,000
8,439 3,900 3,614,101 2,655,299
1,514,446 1,488,749 6,705,907 6,494,076
304,080 231,921 7,951,219 8,148,173
1,818,526$ 1,720,670$ 14,657,126$ 14,642,249$
Business-type Activities - Enterprise Funds
TotalsNonmajor Enterprise
-43-
CITY OF SHOREWOOD, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
OPERATING REVENUES
Charges for services 499,021$ 612,892$ 831,260$ 828,490$
OPERATING EXPENSES
Personal services 106,997 137,295 91,627 94,617
Supplies 15,341 13,294 3,496 1,970
Repairs and maintenance 5,092 8,515 24,803 12,149
Depreciation 271,166 274,917 81,330 221,214
Professional services 3,633 11,344 14,705 14,510
Contracted services 26,018 10,190 17,940 10,230
Insurance 8,000 - 6,500 773
Water purchases 30,767 41,442 - -
Utilities 78,315 75,903 9,691 8,700
Disposal charges - - 561,062 702,206
Other 26,069 15,637 2,205 (443)
TOTAL OPERATING EXPENSES 571,398 588,537 813,359 1,065,926
OPERATING INCOME (LOSS)(72,377) 24,355 17,901 (237,436)
NONOPERATING REVENUES (EXPENSES)
Special assessments 37,492 19,486 - -
Interest on investments 17,886 32,351 14,192 29,843
Loss on disposal of capital assets - - (33,738) -
Other income 1,200 125,017 3,060 3,150
Interest expense (75,630) (100,668) - -
Bond issuance costs (46,165) - - -
TOTAL NONOPERATING REVENUES (EXPENSES)(65,217) 76,186 (16,486) 32,993
INCOME (LOSS) BEFORE CONTRIBUTIONS (137,594) 100,541 1,415 (204,443)
CAPITAL CONTRIBUTIONS - CONNECTION FEES 40,000 20,000 13,200 2,400
CHANGE IN NET POSITION (97,594) 120,541 14,615 (202,043)
NET POSITION, JANUARY 1 7,723,092 7,602,551 5,198,487 5,400,530
NET POSITION, DECEMBER 31 7,625,498$ 7,723,092$ 5,213,102$ 5,198,487$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
Water Sewer
601 611
-44-
Exhibit 9
2013 2012 2013 2012
360,657$ 351,516$ 1,690,938$ 1,792,898$
47,741 64,104 246,365 296,016
3,641 16,607 22,478 31,871
3,330 30,030 33,225 50,694
33,802 32,314 386,298 528,445
19,678 19,783 38,016 45,637
171,896 297,650 215,854 318,070
- - 14,500 773
- - 30,767 41,442
- - 88,006 84,603
- - 561,062 702,206
9,384 1,071 37,658 16,265
289,472 461,559 1,674,229 2,116,022
71,185 (110,043) 16,709 (323,124)
- - 37,492 19,486
835 1,941 32,913 64,135
- - (33,738) -
25,836 23,007 30,096 151,174
- - (75,630) (100,668)
- - (46,165) -
26,671 24,948 (55,032) 134,127
97,856 (85,095) (38,323) (188,997)
- - 53,200 22,400
97,856 (85,095) 14,877 (166,597)
1,720,670 1,805,765 14,642,249 14,808,846
1,818,526$ 1,720,670$ 14,657,126$ 14,642,249$
TotalsNonmajor Enterprise
Business-type Activities - Enterprise Funds
-45-
CITY OF SHOREWOOD, MINNESOTA
STATEMENTS OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 505,476$ 606,162$ 822,469$ 825,876$
Other receipts related to operations 1,200 103,467 3,060 3,150
Payments to suppliers, contractors and other governments (205,176) (168,499) (665,453) (760,681)
Payments to employees (106,629) (140,529) (90,823) (98,063)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 194,871 400,601 69,253 (29,718)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Connection fees received 40,000 20,000 13,200 2,400
Acquisition of capital assets - - (374,284) (22,015)
Bond proceeds, net of issuance costs 2,213,835 - - -
Bonds refunded (1,035,000) - - -
Principal paid on revenue bonds (185,000) (175,000) - -
Interest paid on revenue bonds (83,631) (104,156) - -
Special assessments collected 24,326 45,677 - -
NET CASH PROVIDED (USED) BY CAPITAL
AND RELATED FINANCING ACTIVITIES 974,530 (213,479) (361,084) (19,615)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 12,240 21,387 10,392 19,802
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 1,181,641 208,509 (281,439) (29,531)
CASH AND CASH EQUIVALENTS, JANUARY 1 4,045,974 3,837,465 3,514,714 3,544,245
CASH AND CASH EQUIVALENTS, DECEMBER 31 5,227,615$ 4,045,974$ 3,233,275$ 3,514,714$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and temporary investments 3,805,301$ 3,810,729$ 3,233,275$ 3,514,714$
Cash with fiscal agent 1,422,314 235,245 - -
TOTAL CASH AND CASH EQUIVALENTS 5,227,615$ 4,045,974$ 3,233,275$ 3,514,714$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
601 611
Water Sewer
-46-
Exhibit 10
2013 2012 2013 2012
358,898$ 376,719$ 1,686,843$ 1,808,757$
25,836 23,007 30,096 129,624
(203,459) (365,739) (1,074,088) (1,294,919)
(47,672) (64,868) (245,124) (303,460)
133,603 (30,881) 397,727 340,002
- - 53,200 22,400
(59,499) (110,901) (433,783) (132,916)
- - 2,213,835 -
- - (1,035,000) -
- - (185,000) (175,000)
- - (83,631) (104,156)
- - 24,326 45,677
(59,499) (110,901) 553,947 (343,995)
608 1,427 23,240 42,616
74,712 (140,355) 974,914 38,623
126,933 267,288 7,687,621 7,648,998
201,645$ 126,933$ 8,662,535$ 7,687,621$
201,645$ 126,933$ 7,240,221$ 7,452,376$
- - 1,422,314 235,245
201,645$ 126,933$ 8,662,535$ 7,687,621$
Business-type Activities - Enterprise Funds
TotalsNonmajor Enterprise
-47-
CITY OF SHOREWOOD, MINNESOTA
STATEMENTS OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)(72,377)$ 24,355$ 17,901$ (237,436)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Other income related to operations 1,200 103,467 3,060 3,150
Depreciation 271,166 274,917 81,330 221,214
(Increase) decrease in assets
Accounts receivable 6,455 (6,730) (4,965) (3,578)
Special assessments receivable - - (3,826) 964
Increase (decrease) in liabilities
Accounts payable (11,499) 8,110 (27,084) (10,869)
Due to other governments (442) (284) 2,033 283
Accrued salaries payable 368 (3,234) 804 (3,446)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 194,871$ 400,601$ 69,253$ (29,718)$
NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Loss on disposal of capital assets -$ -$ 33,738$ -$
Capital assets purchased on account -$ -$ -$ 41,916$
The notes to the financial statements are an integral part of this statement.
Water Sewer
601 611
Business-type Activities - Enterprise Funds
-48-
Exhibit 10
2013 2012 2013 2012
71,185$ (110,043)$ 16,709$ (323,124)$
25,836 23,007 30,096 129,624
33,802 32,314 386,298 528,445
(508) 26,224 982 15,916
(1,251) (1,021) (5,077) (57)
4,470 (598) (34,113) (3,357)
- - 1,591 (1)
69 (764) 1,241 (7,444)
133,603$ (30,881)$ 397,727$ 340,002$
-$ -$ 33,738$ -$
-$ -$ -$ 41,916$
Business-type Activities - Enterprise Funds
Nonmajor Enterprise Totals
-49-
Exhibit 11CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF NET POSITION
FIDUCIARY FUND
DECEMBER 31, 2013
Agency
ASSETS
Cash and temporary investments 108,503$
LIABILITIES
Escrow deposits payable 108,503$
The notes to the financial statements are an integral part of this statement.
-50-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting entity
The City of Shorewood, Minnesota (the City), 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 City Council composed of an
elected Mayor and four elected City Council members. The City Council exercises legislative authority and determines
all matters of policy. The City 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 City 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 City. 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 City. The City has the following component unit:
Blended component unit
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 within the City in accordance
with policies established by the City Council. The EDA Board is comprised of the members of the City Council and has
a December 31 year end. Because the EDA’s Board is the same as the City Council, the EDA is blended and reported in
the Debt Service and capital projects funds. Separate financial statements are not issued for this component unit.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the City and its component unit. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions
(including special assessments) that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement focus, basis of accounting and financial statement presentation
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Property taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the City.
-51-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the
year in which the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the
year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all
eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year
when the resources are required to be used or the year when use is first permitted, matching requirements, in which the
City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the
resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange
transactions must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as unearned revenue.
The preparation of 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.
The City reports the following major governmental funds:
The General fund is the City’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Debt Service fund accounts for the resources accumulated and payments made for principal and interest on
long-term general obligation debt of governmental funds.
The Street Reconstruction fund accounts for the resources accumulated and payments made for the periodic
reconstruction of City streets and roadways.
The Trail Construction fund accounts for the resources accumulated and payments made for trail improvements and
construction.
The City reports the following major proprietary funds:
The Water fund accounts for the activities of the City’s water distribution system.
The Sewer fund accounts for the activities of the City’s sewage collection system.
Additionally, the City reports the following fund types:
The fiduciary funds account for assets held by the City 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 accrual basis of accounting. This fund is used to account for assets that the
City holds for certain residents, developers, and other parties that are involved with escrow related projects within
the City.
As a general rule the effect of interfund activity has been eliminated from government-wide financial statements.
Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sewer
function and various other functions of the City. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
-52-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the water, sewer, recycling and stormwater
management utility enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, then unrestricted resources as they are needed.
D. Assets, liabilities, deferred inflows of resources, and net position/fund balance
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.
The City may invest idle funds as authorized by Minnesota statutes, as follows:
1. Direct obligations or obligations guaranteed by the United States or its agencies.
2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received
the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have
a final maturity of thirteen months or less.
3. General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations
rated “AA” or better.
4. General obligations of the Minnesota Housing Finance Agency rated “A” or better.
5. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System.
6. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less.
7. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions
qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to
the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers.
8. Guaranteed Investment Contracts (GIC’s) issued or guaranteed by a United States commercial bank, a domestic
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally recognized rating agency.
The City’s investment policy has further restricted the City’s investments to items 1, 2, 3, and 6 above. Investments for
the City are reported at fair value. Earnings on investments are allocated to the individual funds based upon the average
cash and investment balances.
-53-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 Auditor and tax settlements are made to the City during January, July and December each year.
Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred
inflow of resources for delinquent taxes not received within 60 days after year end in the governmental fund financial
statements.
Accounts receivable
Accounts receivable include amounts billed for services provided before year end. All trade receivables are shown net of
an allowance for uncollectible accounts. The allowance for uncollectible accounts at December 31, 2013 is $27,319.
Unbilled utility enterprise fund receivables are also included for services provided in 2013. The City annually certifies
delinquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no
allowance for doubtful accounts established in the enterprise funds.
Special assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue
when they are received in cash or within 60 days after year end. All governmental assessments receivable are offset by a
deferred inflow of resources in the fund financial statements.
Lease receivable
The City has a total of five leases receivable. Three of the leases are related to public safety buildings that the City has
leased to the Excelsior Fire District and the South Lake Minnetonka Police Department. The other two leases were
issued to the Excelsior Fire District for equipment financing assistance. As of December 31, 2013, the City has
$8,155,959 of leases receivable outstanding.
Interfund receivables and payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either “interfund receivables/payables” (i.e., the current portion of 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.” Any residual balances outstanding between the governmental activities
and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account
in applicable governmental funds to indicate they are not available for appropriation and are not expendable available
financial resources.
Prepaid items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. Prepaid items of the City are accounted for using the consumption
method.
-54-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Capital assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and
similar items), are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair market value at the date of donation. For financial statement purposes only, a capitalization
threshold is established for each capital asset category as follows:
Assets Threshold
Land and land improvements 10,000$
Other improvements 25,000
Buildings 25,000
Building improvements 25,000
Machinery and equipment 5,000
Vehicles 5,000
Infrastructure 100,000
Other assets 5,000
In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the
City chose to include items dating back to June 30, 1980. The City was able to estimate the historical cost for the initial
reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be
capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition
year). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized
and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially
amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful
life beyond the original estimate.
Interest incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed.
Property, plant and equipment of the City, are depreciated using the straight-line method over the following estimated
useful lives:
Useful Lives
Assets in Years
Land improvements 15 - 20
Buildings and improvements 7 - 40
System improvements/infrastructure 20 - 50
Machinery and equipment 5 - 15
Vehicles 5 - 15
-55-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Compensated absences
It is the City’s policy to permit employees to accumulate a portion of earned but unused vacation and sick pay benefits.
Accumulated vacation and sick pay are accrued when incurred in the government-wide, proprietary, and fiduciary fund
financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. In the case of an employee leaving, the General fund
would be responsible for liquidation of the liability.
Postemployment benefits other than pensions
Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue
coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be
receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group
plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent
coverage immediately before retirement. All premiums are funded on a pay-as-you-go basis. It was determined, in
accordance with GASB Statement 45, at December 31, 2013 that the City has a zero liability.
Long-term obligations
In the government-wide financial statement and proprietary fund types in the fund financial statements, long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type
activities or proprietary fund type statement of net position. The recognition of bond premiums and discounts are
amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are reported as an expense in the period incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Deferred inflows of resources
In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an
inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a
modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from three sources: property taxes, lease receivable, and grants. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts are received.
-56-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fund balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which
the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items and
land held for resale.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council, which is the City’s highest level of decision-making authority. Committed amounts cannot be used
for any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable
and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established
by the City Council itself or by an official to which the governing body delegates the authority. The City Council
has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City
Administrator.
Unassigned - The residual classification for the General fund and also negative residual amounts in other funds.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
The City has formally adopted a fund balance policy for the General fund. The City’s policy is to maintain a minimum
unassigned fund balance of 55-60 percent of operating expenditures for cash-flow timing needs.
Net position
Net position represents the difference between assets and liabilities. Net position is displayed in three components:
a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquire capital assets.
b. Restricted net position - Consist of net position balances restricted when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
c. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net
investment in capital assets”.
Comparative data/reclassifications
Comparative total data for the prior year have been presented only for individual enterprise funds in the fund financial
statements in order to provide an understanding of the changes in the financial position and operations of these funds.
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
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 City Council for review. In early
December, the City Council holds public hearings and a final budget is prepared and adopted.
The appropriated budget is prepared by fund, function and department. The City’s department heads, with the approval of the
City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between
departments require the approval of the City Council. The legal level of budgetary control is the department level.
The City made amendments to the General fund budget during the year which increased the expenditure budget by $1,000 in
the culture and recreation department.
Note 3: DETAILED NOTES ON ALL FUNDS
A. Deposits and investments
Deposits
Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and
investments may not be returned or the City will not be able to recover collateral securities in the possession of an
outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits
at those depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds.
Authorized collateral in lieu of a corporate surety bond includes:
• United States government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
• General obligation securities of any state or local government with taxing powers which is rated “A” or better
by a national bond rating service, or revenue obligation securities of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service;
• General obligation securities of a local government with taxing powers may be pledged as collateral against
funds deposited by that same local government entity;
• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or
Standard & Poor’s Corporation; and
• Time deposits that are fully insured by any Federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral. The selection should be approved by the government
entity.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
At year end, the City’s carrying amount of deposits was $232,001 and the bank balance was $300,991. The entire bank
balance was covered by Federal depository insurance or by collateral held by the City’s agent in the City’s name.
A reconciliation of cash and temporary investments as shown on the financial statements for the City follows:
Primary
Government
Carrying amount of deposits 232,001$
Investments 15,246,061
Cash on hand 120
Total 15,478,182$
As reported on the financial statements
Statement of net position 13,947,365$
Cash with fiscal agent 1,422,314
Fiduciary fund 108,503
Total 15,478,182$
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Investments
The Minnesota Municipal Money Market fund (the 4M fund) is a customized cash management and investment program
for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M fund is a
unique investment alternative designed to address the daily and long-term investment needs of Minnesota cities and other
municipal entities. Allowable under Minnesota statutes, the 4M fund is comprised of top quality, rated investments.
The Minnesota Municipal Money Market fund and broker money market investment pools operate in accordance with
appropriate State laws and regulations. The 4M fund is an external investment pool not registered with the Securities and
Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported
value of the pool is the same as the fair value of the pool share. Financial statements of the 4M fund can be obtained by
contracting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240.
At year end, the City had the following investments that are insured or registered, or securities held by the City’s agent in
the City’s name:
Fair Value
Credit Segmented and
Quality/Time Carrying
Rating (1)Distribution (2)Amount
Non Pooled investments
U.S. Government Agency Securities AAA more than 3 years 1,481,452$
U.S. Government Agency Securities AA+more than 3 years 988,468
Municipal Bonds AA less than 6 months 460,777
Municipal Bonds AA less than 1 year 1,476,957
Municipal Bonds A 1 to 3 years 1,117,621
Municipal Bonds AA 1 to 3 years 1,802,459
Municipal Bonds AAA 1 to 3 years 269,487
Municipal Bonds A more than 3 years 949,591
Municipal Bonds AA more than 3 years 1,270,594
Municipal Bonds Aa2 more than 3 years 295,014
Brokered Certificates of Deposit N/A less than 6 months 485,404
Brokered Certificates of Deposit N/A 6 to 12 months 244,703
Brokered Certificates of Deposit N/A 1 to 3 years 248,929
Total non pooled 11,091,456
Pooled investments
Minnesota Municipal Money Market fund N/A less than 6 months 2,461,186
Broker Money Market N/A less than 6 months 1,693,419
Total pooled 4,154,605
Total investments 15,246,061$
Types of Investments
(1) Ratings are provided by various credit ratings agencies where applicable to indicate associated credit risk.
(2) Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available.
-60-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The investments of the City are subject to the following risks:
• Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated
credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list on
page 53 of the notes.
• Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. In accordance with the City’s investment policy, the
investment officer shall structure all investments, deposits and repurchase agreements so that the custodial risk
is categorized as either insured or registered, or securities held by the City or its agent in the City’s name or
uninsured and unregistered, with securities held by the counterparty’s trust department or agent in the City’s
name. All investments are placed in safekeeping at financial institutions.
• Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a
government’s investment in a single issuer. In accordance with the City’s investment policy, the City diversifies
its investment portfolio to eliminate the risk of loss resulting from over-concentration of assets in a specific
maturity, a specific issuer or a specific class of securities. As of December 31, 2012 the City had invested
5.0 percent or more of its total investment portfolio in the following issuers: Columbia County GA, 5.9 percent,
and Illinois State Taxable, 5.5 percent.
• Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. In accordance with its investment policy and also detailed in the description of concentration of
credit risk, the City manages its exposure to declines in fair values by “laddering” their investment maturities to
ensure that a portion of the portfolio is maturing monthly, or as needed to meet projected expenditures. The
City also permits no more than 30 percent of total investments to extend beyond five (5) years and does not
directly invest in securities maturing more than 15 years from the date of purchase.
-61-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
B. Capital assets
Capital asset activity for the year ended December 31, 2013 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 741,826$ -$ -$ 741,826$
Construction in progress - 1,565,510 - 1,565,510
Total capital assets
not being depreciated 741,826 1,565,510 - 2,307,336
Capital assets being depreciated
Buildings 3,373,870 - (307,868) 3,066,002
Improvements other than buildings 1,012,469 - - 1,012,469
Infrastructure 27,836,891 86,457 - 27,923,348
Machinery and equipment 2,807,416 236,430 (169,138) 2,874,708
Total capital assets
being depreciated 35,030,646 322,887 (477,006) 34,876,527
Less accumulated depreciation
Buildings (1,034,056) (84,212) 67,667 (1,050,601)
Improvements other than buildings (686,527) (38,574) - (725,101)
Infrastructure (22,331,596) (687,736) - (23,019,332)
Machinery and equipment (2,093,131) (162,421) 169,138 (2,086,414)
Total accumulated
depreciation (26,145,310) (972,943) 236,805 (26,881,448)
Total capital assets
being depreciated, net 8,885,336 (650,056) (240,201) 7,995,079
Governmental activities
capital assets, net 9,627,162$ 915,454$ (240,201)$ 10,302,415$
-62-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being depreciated
Land 434,113$ -$ -$ 434,113$
Construction in progress 63,931 332,368 (396,299) -
Total capital assets
not being depreciated 498,044 332,368 (396,299) 434,113
Capital assets being depreciated
Infrastructure 20,014,068 455,798 (68,042) 20,401,824
Machinery and equipment 83,254 - - 83,254
Total capital assets
being depreciated 20,097,322 455,798 (68,042) 20,485,078
Less accumulated depreciation for
Infrastructure (11,522,367) (381,967) 34,304 (11,870,030)
Machinery and equipment (78,923) (4,331) - (83,254)
Total accumulated
depreciation (11,601,290) (386,298) 34,304 (11,953,284)
Total capital assets
being depreciated, net 8,496,032 69,500 (33,738) 8,531,794
Business-type activities
capital assets, net 8,994,076$ 401,868$ (430,037)$ 8,965,907$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 58,915$
Public works 852,179
Culture and recreation 61,849
Total depreciation expense - governmental activities 972,943$
Business-type activities
Water 271,166$
Sewer 81,330
Stormwater management utility 33,802
Total depreciation expense - business-type activities 386,298$
-63-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Construction commitments
The City has active construction projects as of December 31, 2013. At year end, the commitment with the contractors for
these projects is as follows:
Spent Remaining
to date Commitment
Valleywood Street Reconciliation 145,842$ 62,139$
Smithtown Road Trail Project 989,500 118,899
Total 1,135,342$ 181,038$
Project
C. Interfund transfers
The City made transfers during the fiscal year 2013 as shown and described below:
Street Trail Nonmajor
Debt Service Reconstruction Construction Governmental Total
Transfers out
General 100,450$ 714,000$ -$ 192,200$ 1,006,650$
Nonmajor governmental - - 1,476,000 - 1,476,000
Total 100,450$ 714,000$ 1,476,000$ 192,200$ 2,482,650$
Fund
Transfers in
The City annually budgets transfers for specific purposes. Annual transfers are made as part of capital improvement
plans as well as annual budgets.
For the year ended December 31, 2013, the City made the following one-time transfers:
• The General fund transferred $44,000 to the Southshore Community Center fund for cash flow purposes.
• The Community Infrastructure fund transferred $174,000 to the Trail Reconstruction fund for cash flow
purposes.
D. 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 governmental and business-type activities. These bonds are reported
in the proprietary funds if they are expected to be repaid from proprietary fund revenues. In addition, general obligation
bonds have been issued to refund special assessments related bonds.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. The City has the following
general obligation debt:
-64-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
General obligation revenue bonds
The following bonds were issued to finance capital improvements in the enterprise funds. They will be repaid from
future net revenues pledged from the Water fund and are backed by the taxing power of the City. Annual principal and
interest payments on the bonds are expected to require less than 20 percent of the net revenues from the Water fund.
Principal and interest paid for the current year and total customer net revenues for the Water fund were $101,369 and
$499,021, respectively.
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
G.O. Water Revenue
Bonds of 2006 1,450,000 4.00 11/29/06 01/01/14 1,280,000$
G.O. Water Revenue
Bonds of 2013 2,260,000 0.25 - 1.45 03/01/13 01/01/22 2,260,000
Total G.O. Revenue Bonds 3,540,000$
Rate
Interest
Description
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending
December 31,Principal Interest Total
2014 1,380,000$ 51,425$ 1,431,425$
2015 260,000 18,757 278,757
2016 265,000 17,640 282,640
2017 265,000 16,182 281,182
2018 270,000 14,375 284,375
2019 - 2022 1,100,000 29,174 1,129,174
Total 3,540,000$ 147,553$ 3,687,553$
G.O. Revenue Bonds
Business-type Activities
Lease revenue bonds
The City also issues bonds where the City pledges income derived from the leasing of the acquired or constructed assets
to pay debt service. Revenue bonds outstanding at year end are as follows:
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
Public Safety Fire Facility,
Refunding Series 2007A 4,130,000$ 5.30 - 5.40 %01/01/07 02/01/23 3,225,000$
Public Safety Police Facility,
Refunding Series 2007B 4,285,000 3.50 - 4.25 01/01/07 02/01/23 3,350,000
Public Safety Fire Facility,
Refunding Series 2007C 1,585,000 3.75 - 5.00 01/01/07 02/01/22 1,175,000
Public Project Lease Revenue
Bonds, Series 2008A 1,310,000 2.85 - 4.80 08/19/08 12/01/28 1,090,000
Total Lease Revenue Bonds 8,840,000$
Interest
RateDescription
-65-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The Public Safety Fire Facility Refunding Series 2007A, 2007B and 2007C were issued for construction of the public
safety building, which there is a lease receivable from the South Lake Minnetonka Police and Excelsior Fire District.
This debt is excluded from the calculation of net position invested in capital assets, net of related debt as the building is
reported on the South Lake Minnetonka Police and Excelsior Fire District as a capital asset. Refer to Note 5 A and B for
further information.
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending
December 31,Principal Interest Total
2014 705,000$ 356,227$ 1,061,227$
2015 735,000 325,081 1,060,081
2016 770,000 290,863 1,060,863
2017 800,000 257,068 1,057,068
2018 830,000 225,287 1,055,287
2019 - 2023 4,555,000 586,107 5,141,107
2024 - 2028 445,000 65,400 510,400
Total 8,840,000$ 2,106,033$ 10,946,033$
Governmental Activities
Lease Revenue Bonds
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2013, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental activities
Lease revenue bonds 9,515,000$ -$ (675,000)$ 8,840,000$ 705,000$
Compensated absences 181,762 153,433 (150,470) 184,725 152,922
Total 9,696,762$ 153,433$ (825,470)$ 9,024,725$ 857,922$
Business-type activities
General obligation
revenue bonds 2,500,000$ 2,260,000$ (1,220,000)$ 3,540,000$ 1,380,000$
Refunding bond
On March 6, 2013, the City issued $2,260,000 of water revenue bonds. The bond issue was a current refunding of the
G.O. Water Revenue Bonds of 2005 and a crossover refunding of the G.O. Water Revenue Bonds of 2006. The new
bonds have an average coupon rate of 1.04 percent compared to the 4.16 and 4.00 percent average coupon rates on the
old bonds, respectively. The proceeds of the new bonds pertaining to the 2005 bonds were used to refund those bonds on
March 6, 2013. The proceeds of the new bonds pertaining to the 2006 bonds are held in an escrow account pending the
call date of January 1, 2014. The 2006 bonds are not defeased until the crossover date, and therefore will not be removed
as a liability until that date. As a result of the refunding issue, the City will save $340,535 in debt service payments and
achieve an economic gain (the present value of the difference between the old and the new debt service) of $306,132.
-66-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 4: DEFINED BENEFIT PENSION PLAN - 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 General Employees Retirement Fund
(GERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established and administered in
accordance with Minnesota statutes, chapters 353 and 356.
GERF 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 Minnesota 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 PERA’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 2.20 percent of average salary for each of the first 10 years
of service and 2.70 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is
1.20 percent of average salary for each of the first 10 years and 1.70 percent for each remaining year. Under Method 2,
the annuity accrual rate is 2.70 percent of average salary for Basic Plan members and 1.70 percent for Coordinated Plan
members for each year of service. GERF members hired prior to July 1, 1989 whose annuity is calculated using
Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is the age for
unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. 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 single-life 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 be payable over joint lives. Members may also leave their contributions in
the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of
contributions are available at any time to members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan
participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the
provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required supplementary
information for GERF. That report may be obtained on the Internet at mnpera.org, by writing to PERA, 60 Empire Drive
#200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or (800) 652-9026.
B. Funding policy
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are established
and amended by the Minnesota legislature. The City makes annual contributions to the pension plans equal to the
amount required by Minnesota statutes. GERF Basic Plan members and Coordinated Plan members were required to
contribute 9.10 percent and 6.25 percent, respectively, of their annual covered salary in 2013. In 2013, the City was
required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members
and 7.25 percent for Coordinated Plan GERF members. The City’s contributions to the GERF for the years ending
December 31, 2013, 2012 and 2011 were $86,064, $99,677, and $100,570, respectively. The City’s contributions were
equal to the contractually required contributions for each year as set by Minnesota statute.
-67-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 5: JOINT VENTURES
A. South Lake Minnetonka Police Department
The City participates in a joint powers agreement with the cities of Excelsior, Greenwood and Tonka Bay, which
establishes the South Lake Minnetonka Police Department (the Department) for the purpose of providing police
protection within the four communities. The agreement creates a coordinating committee, comprised of the Mayors of
each participating community, as the governing body, which meets quarterly. Each year, the coordinating committee
adopts an operating budget, which is approved by all participating cities. The cost of the operating budget is divided
between the participating cities based upon a five-year average demand for service in each City.
Any budget shortfall is made up first from department reserves, with any excess shortfall assessed to each participating
community according to the formula. The most recent year of audited information is December 31, 2013.
Separate financial statements can be obtained by writing to the South Lake Minnetonka Police Department,
24150 Smithtown Road, Shorewood, Minnesota 55331. The following is a summary of the Department’s Statement of
Net Position as of December 31, 2013 and 2012:
SOUTH LAKE MINNETONKA POLICE DEPARTMENT
SUMMARY OF STATEMENTS OF NET POSITION
DECEMBER 31, 2013 AND 2012
2013 2012
Assets 5,214,361$ 5,296,193$
Liabilities 3,639,122$ 3,895,391$
Net position 1,575,239 1,400,802
Total liabilities
and net position 5,214,361$ 5,296,193$
The following is a summary of the Department’s statement of activities for the years ended December 31, 2013 and
2012:
SOUTH LAKE MINNETONKA POLICE DEPARTMENT
SUMMARY STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012
Revenues 2,792,683$ 2,691,104$
Expenses 2,630,842 2,558,191
Net revenues 161,841 132,913
General revenues 12,596 25,437
Change in net position 174,437 158,350
Net position, January 1 1,400,802 1,242,452
Net position, December 31 1,575,239$ 1,400,802$
-68-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 5: JOINT VENTURES - CONTINUED
B. 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 Board of Directors is comprised of ten members and five alternate members.
Each Member City appoints two representatives on the Board of Directors and one alternate. 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, 24100 Smithtown Road,
Shorewood, Minnesota 55331. The following is a summary of the District’s Statement of Net Position as of
December 31, 2013 and 2012:
EXCELSIOR FIRE DISTRICT
SUMMARY OF STATEMENTS OF NET POSITION
DECEMBER 31, 2013 AND 2012
2013 2012
Assets 8,070,939$ 8,105,724$
Liabilities 4,956,613$ 5,277,656$
Net position 3,114,326 2,828,068
Total liabilities
and net position 8,070,939$ 8,105,724$
The following is a summary of the District’s statement of activities for the years ended December 31, 2013 and 2012:
EXCELSIOR FIRE DISTRICT
SUMMARY STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012
Revenues 1,565,399$ 1,557,428$
Expenses 1,294,952 1,251,845
Net revenues 270,447 305,583
General revenues 15,811 2,381
Change in net position 286,258 307,964
Net position, January 1 2,828,068 2,520,104
Net position, December 31 3,114,326$ 2,828,068$
According to a formula in the agreement, the City’s share of the District’s budget is 38.48 percent. Payments to the
District in 2013 totaled $608,800. The District issues a publicly available financial report that includes financial
statements and required supplementary information. The report may be obtained by writing to the Excelsior Fire District,
24100 Smithtown Road, Shorewood, Minnesota 55331
-69-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
Note 6: 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.
B. Legal debt margin
The City’s statutory debt limit is $41,196,483 computed as three percent of $1,373,216,084, which is the taxable market
value of property within the City. Long-term debt issued and financed partially or entirely by special assessments, tax
increments or the net revenues of enterprise fund operations is excluded from the debt limit computation. The City has
no debt that is subject to the statutory debt limit.
C. Southshore Community Center
On July 1, 2009, the City entered into an agreement to take over operations of the Southshore Community Center. The
City also contracted with Community Recreation Resources (CRR) for the operation, management, and programming of
the Southshore Community Center. The contract with CRR was for the period of July 1, 2009 to July 1, 2012 with an
option to renew for another three years or renegotiate. The contract was re-negotiated in January, 2012. The City agreed
to pay CRR $5,000 per month for the period of January 1, 2012 to December 31, 2012. During this time, the City paid a
15 percent commission on monthly revenues to CRR. A quarterly bonus commission of five percent was due if the
quarterly program and rental income exceeded $13,500. The contract was subsequently extended on a month by month
basis through March 31, 2013 when CRR ceased to provide services as the Southshore Community Center management
company.
-70-
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
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INTENTIONALLY
-72-
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenue derived from specific taxes or other earmarked revenue sources. They are
usually required by Minnesota statute or local ordinances to finance particular functions or other activities of government.
Southshore Community Center - This fund was established to account for the resources accumulated from events and activities held
at the City’s community center, and the payment of expenditures related to operations of the community center. The City has
committed charges for services revenues for operations.
-73-
Exhibit A-1CITY OF SHOREWOOD, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2013
Special
Revenue
Southshore Total
Community Capital Nonmajor
Center Projects Funds
ASSETS
Cash and temporary investments 4,680$ 564,120$ 568,800$
Receivables
Accrued interest - 11,326 11,326
Lease - 405,959 405,959
Land held for resale - 150,068 150,068
TOTAL ASSETS 4,680$ 1,131,473$ 1,136,153$
LIABILITIES
Accounts and contracts payable 4,103$ 7,768$ 11,871$
Accrued salaries payable 108 - 108
TOTAL LIABILITIES 4,211 7,768 11,979
FUND BALANCES
Nonspendable land held for resale - 150,068 150,068
Assigned to capital outlay - 973,637 973,637
Assigned to community center operations 469 - 469
TOTAL FUND BALANCES 469 1,123,705 1,124,174
TOTAL LIABILITIES AND
FUND BALANCES 4,680$ 1,131,473$ 1,136,153$
-74-
Exhibit A-2CITY OF SHOREWOOD, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2013
Special
Revenue
490
Southshore Total
Community Capital Nonmajor
Center Projects Funds
REVENUES
Charges for services 41,720$ -$ 41,720$
Interest on investments - 15,537 15,537
Miscellaneous
Park dedication fees - 55,000 55,000
Contributions and donations 10,171 - 10,171
Other 2,151 - 2,151
TOTAL REVENUES 54,042 70,537 124,579
EXPENDITURES
Current
Public works - 7,404 7,404
Culture and recreation 104,524 - 104,524
Capital outlay
Public works - 265,739 265,739
Culture and recreation - 56,576 56,576
TOTAL EXPENDITURES 104,524 329,719 434,243
DEFICIENCY OF REVENUES
UNDER EXPENDITURES (50,482) (259,182) (309,664)
OTHER FINANCING SOURCES (USES)
Transfers in 91,700 100,500 192,200
Transfers out - (1,476,000) (1,476,000)
TOTAL OTHER FINANCING SOURCES (USES)91,700 (1,375,500) (1,283,800)
NET CHANGE IN FUND BALANCES 41,218 (1,634,682) (1,593,464)
FUND BALANCES, JANUARY 1 (40,749) 2,758,387 2,717,638
FUND BALANCES, DECEMBER 31 469$ 1,123,705$ 1,124,174$
-75-
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INTENTIONALLY
-76-
NONMAJOR 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.
Park Capital Improvement - This fund accounts for park land acquisition and other capital improvements in the City parks.
Equipment Replacement - This fund was established for the purpose of funding the replacement of capital equipment.
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.
Community Infrastructure - This fund was established for the purpose of funding future improvements in the City.
-77-
Exhibit B-1CITY OF SHOREWOOD, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2013
402 403 405 450
Park
Capital Equipment MSA Community
Improvement Replacement Construction Infrastructure Total
ASSETS
Cash and temporary investments 220,109$ 6,775$ 126,387$ 210,849$ 564,120$
Receivables
Accrued interest 1,025 529 714 9,058 11,326
Lease - 405,959 - - 405,959
Land held for resale - - - 150,068 150,068
TOTAL ASSETS 221,134$ 413,263$ 127,101$ 369,975$ 1,131,473$
LIABILITIES
Accounts and contracts payable 7,768$ -$ -$ -$ 7,768$
FUND BALANCES
Nonspendable land held for resale - - - 150,068 150,068
Assigned to capital outlay 213,366 413,263 127,101 219,907 973,637
TOTAL FUND BALANCES 213,366 413,263 127,101 369,975 1,123,705
TOTAL LIABILITIES
AND FUND BALANCES 221,134$ 413,263$ 127,101$ 369,975$ 1,131,473$
-78-
Exhibit B-2CITY OF SHOREWOOD, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2013
402 403 405 450
Park
Capital Equipment MSA Community
Improvement Replacement Construction Infrastructure Total
REVENUES
Interest on investments 966$ 6,809$ 568$ 7,194 15,537$
Miscellaneous
Park dedication fees 55,000 - - - 55,000
TOTAL REVENUES 55,966 6,809 568 7,194 70,537
EXPENDITURES
Current
Public works - - 7,404 - 7,404
Capital outlay
Public works - 265,739 - - 265,739
Culture and recreation 53,027 - - 3,549 56,576
TOTAL EXPENDITURES 53,027 265,739 7,404 3,549 329,719
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,939 (258,930) (6,836) 3,645 (259,182)
OTHER FINANCING SOURCES (USES)
Transfers in 42,000 58,500 - - 100,500
Transfers out - - - (1,476,000) (1,476,000)
TOTAL OTHER FINANCING
SOURCES (USES)42,000 58,500 - (1,476,000) (1,375,500)
NET CHANGE IN FUND BALANCES 44,939 (200,430) (6,836) (1,472,355) (1,634,682)
FUND BALANCES, JANUARY 1 168,427 613,693 133,937 1,842,330 2,758,387
FUND BALANCES, DECEMBER 31 213,366$ 413,263$ 127,101$ 369,975$ 1,123,705$
-79-
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INTENTIONALLY
-80-
NONMAJOR PROPRIETARY FUNDS
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for fund activities of the City that operate in a manner similar to private businesses.
Recycling - This fund accounts for the activities of the City’s recycling program.
Stormwater Management Utility - This fund accounts for the activities of the City’s stormwater management system.
-81-
CITY OF SHOREWOOD, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENTS OF NET POSITION
DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
ASSETS
CURRENT ASSETS
Cash and temporary investments 52,716$ 44,454$ 148,929$ 82,479$
Receivables
Accrued interest 306 225 775 629
Accounts 42,924 42,440 51,354 51,330
Special assessments 1,040 737 1,662 1,753
TOTAL CURRENT ASSETS 96,986 87,856 202,720 136,191
NONCURRENT ASSETS
Special assessments receivable 5,778 4,992 7,035 6,782
Capital assets
Land - - 434,113 434,113
Infrastructure - - 1,352,076 1,292,577
Less accumulated depreciation - - (271,743) (237,941)
NET CAPITAL ASSETS - - 1,514,446 1,488,749
TOTAL NONCURRENT ASSETS 5,778 4,992 1,521,481 1,495,531
TOTAL ASSETS 102,764 92,848 1,724,201 1,631,722
LIABILITIES
CURRENT LIABILITIES
Accounts and contracts payable - 412 8,370 3,488
Accrued salaries payable 69 - - -
TOTAL LIABILITIES 69 412 8,370 3,488
NET POSITION
Net investment in capital assets - - 1,514,446 1,488,749
Unrestricted 102,695 92,436 201,385 139,485
TOTAL NET POSITION 102,695$ 92,436$ 1,715,831$ 1,628,234$
Business-type Activities - Enterprise Funds
Recycling Stormwater Management Utility
621 631
-82-
Exhibit C-1
2013 2012
201,645$ 126,933$
1,081 854
94,278 93,770
2,702 2,490
299,706 224,047
12,813 11,774
434,113 434,113
1,352,076 1,292,577
(271,743) (237,941)
1,514,446 1,488,749
1,527,259 1,500,523
1,826,965 1,724,570
8,370 3,900
69 -
8,439 3,900
1,514,446 1,488,749
304,080 231,921
1,818,526$ 1,720,670$
Totals
-83-
CITY OF SHOREWOOD, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
OPERATING REVENUES
Charges for services 165,713$ 157,585$ 194,944$ 193,931$
OPERATING EXPENSES
Personal services 3,538 6,493 44,203 57,611
Supplies 1,491 14,922 2,150 1,685
Repairs and maintenance - - 3,330 30,030
Depreciation - - 33,802 32,314
Professional services - - 19,678 19,783
Contracted services 167,345 166,162 4,551 131,488
Other 9,163 136 221 935
TOTAL OPERATING EXPENSES 181,537 187,713 107,935 273,846
OPERATING INCOME (LOSS)(15,824) (30,128) 87,009 (79,915)
NONOPERATING REVENUES
Interest on investments 253 529 582 1,412
Other income 25,830 23,007 6 -
TOTAL NONOPERATING REVENUES 26,083 23,536 588 1,412
CHANGE IN NET POSITION 10,259 (6,592) 87,597 (78,503)
NET POSITION, JANUARY 1 92,436 99,028 1,628,234 1,706,737
NET POSITION, DECEMBER 31 102,695$ 92,436$ 1,715,831$ 1,628,234$
Business-type Activities -
Enterprise Funds
Recycling Stormwater Management Utility
631621
-84-
Exhibit C-2
2013 2012
360,657$ 351,516$
47,741 64,104
3,641 16,607
3,330 30,030
33,802 32,314
19,678 19,783
171,896 297,650
9,384 1,071
289,472 461,559
71,185 (110,043)
835 1,941
25,836 23,007
26,671 24,948
97,856 (85,095)
1,720,670 1,805,765
1,818,526$ 1,720,670$
Business-type Activities -
Enterprise Funds
Totals
-85-
CITY OF SHOREWOOD, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 164,140$ 155,320$ 194,758$ 221,399$
Other receipts related to operations 25,830 23,007 6 -
Payments to suppliers, contractors
and other governments (178,411) (180,808) (25,048) (184,931)
Payments to employees (3,469) (6,569) (44,203) (58,299)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 8,090 (9,050) 125,513 (21,831)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets - - (59,499) (110,901)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 172 358 436 1,069
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 8,262 (8,692) 66,450 (131,663)
CASH AND CASH EQUIVALENTS, JANUARY 1 44,454 53,146 82,479 214,142
CASH AND CASH EQUIVALENTS, DECEMBER 31 52,716$ 44,454$ 148,929$ 82,479$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)(15,824)$ (30,128)$ 87,009$ (79,915)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Other income related to operations 25,830 23,007 6 -
Depreciation - - 33,802 32,314
(Increase) decrease in assets
Accounts receivable (484) (1,903) (24) 28,127
Special assessments receivable (1,089) (362) (162) (659)
Increase (decrease) in liabilities
Accounts payable (412) 412 4,882 (1,010)
Accrued salaries payable 69 (76) - (688)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 8,090$ (9,050)$ 125,513$ (21,831)$
Business-type Activities -
621
Enterprise Funds
Recycling Stormwater Management Utility
631
-86-
Exhibit C-3
2013 2012
358,898$ 376,719$
25,836 23,007
(203,459) (365,739)
(47,672) (64,868)
133,603 (30,881)
(59,499) (110,901)
608 1,427
74,712 (140,355)
126,933 267,288
201,645$ 126,933$
71,185$ (110,043)$
25,836 23,007
33,802 32,314
(508) 26,224
(1,251) (1,021)
4,470 (598)
69 (764)
133,603$ (30,881)$
Business-type Activities -
Enterprise Funds
Totals
-87-
Exhibit D-1CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES
FOR THE YEAR ENDED DECEMBER 31, 2013
(With comparative actual amounts for the year ended December 31, 2012)
2012
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
REVENUES
Taxes
General property taxes 4,659,793$ 4,659,793$ 4,660,946$ 1,153$ 4,670,529$
Fiscal disparities 103,526 103,526 103,526 - 113,410
Total 4,763,319 4,763,319 4,764,472 1,153 4,783,939
Licenses and permits
Business 13,850 13,850 19,597 5,747 15,866
Nonbusiness 110,350 110,350 185,003 74,653 159,221
Total 124,200 124,200 204,600 80,400 175,087
Intergovernmental
State
Property tax credits - - 26 26 245
Other 70,401 70,401 76,518 6,117 75,857
Total 70,401 70,401 76,544 6,143 76,102
Charges for services
General government 5,650 5,650 (3,544) (9,194) 21,928
Culture and recreation 29,500 29,500 54,373 24,873 39,683
Total 35,150 35,150 50,829 15,679 61,611
Fines and forfeitures 57,000 57,000 59,294 2,294 66,230
Interest on investments 35,000 35,000 12,911 (22,089) 25,602
Miscellaneous revenue
Refunds and reimbursements 10,000 10,000 46,838 36,838 67,032
Contributions and donations - - 3,070 3,070 3,514
Other 168,900 168,900 144,569 (24,331) 47,278
Total 178,900 178,900 194,477 15,577 117,824
TOTAL REVENUES 5,263,970 5,263,970 5,363,127 99,157 5,306,395
2013
Budgeted Amounts
-88-
Exhibit D-1CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2013
(With comparative actual amounts for the year ended December 31, 2012)
2012
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
EXPENDITURES
Current
General government
Mayor and Council
Personal services 16,800$ 16,800$ 16,794$ 6$ 16,794$
Supplies 2,000 2,000 2,035 (35) 887
Other services and charges 72,450 72,450 90,885 (18,435) 80,309
Total 91,250 91,250 109,714 (18,464) 97,990
Administrative
Personal services 359,671 359,671 240,032 119,639 373,914
Supplies 18,450 18,450 15,650 2,800 17,906
Other services and charges 42,175 42,175 134,401 (92,226) 82,008
Total 420,296 420,296 390,083 30,213 473,828
Finance
Personal services 132,929 132,929 137,469 (4,540) 120,556
Supplies 8,400 8,400 8,225 175 8,041
Other services and charges 11,600 11,600 14,619 (3,019) 11,686
Total 152,929 152,929 160,313 (7,384) 140,283
Professional services
Other services and charges 203,390 203,390 199,042 4,348 190,592
Planning and zoning
Personal services 170,666 170,666 181,143 (10,477) 181,381
Supplies 650 650 292 358 137
Other services and charges 7,400 7,400 7,684 (284) 7,691
Total 178,716 178,716 189,119 (10,403) 189,209
Municipal building
Supplies 22,130 22,130 60,118 (37,988) 40,799
Other services and charges 164,800 164,800 141,227 23,573 149,879
Total 186,930 186,930 201,345 (14,415) 190,678
Total general government 1,233,511 1,233,511 1,249,616 (16,105) 1,282,580
Budgeted Amounts
2013
-89-
Exhibit D-1CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2013
(With comparative actual amounts for the year ended December 31, 2012)
2012
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2013
EXPENDITURES - CONTINUED
Current - continued
Public safety
Police protection
Other services and charges 1,015,077$ 1,015,077$ 1,018,680$ (3,603)$ 992,711$
Fire protection
Other services and charges 349,582 349,582 345,728 3,854 331,987
Protective inspection
Personal services 120,588 120,588 123,412 (2,824) 114,396
Supplies 200 200 - 200 242
Other services and charges 5,300 5,300 6,813 (1,513) 5,813
Total 126,088 126,088 130,225 (4,137) 120,451
Total public safety 1,490,747 1,490,747 1,494,633 (3,886) 1,445,149
Public works
General maintenance
Personal services 428,775 428,775 434,212 (5,437) 417,331
Supplies 171,300 171,300 141,763 29,537 120,685
Other services and charges 138,550 138,550 105,845 32,705 121,759
Total 738,625 738,625 681,820 56,805 659,775
Snow and ice removal
Personal services 56,662 56,662 56,862 (200) 27,502
Supplies 45,000 45,000 44,835 165 29,509
Total 101,662 101,662 101,697 (35) 57,011
City engineer
Personal services 92,549 92,549 460 92,089 84,615
Supplies 200 200 - 200 144
Other services and charges 11,220 11,220 68,690 (57,470) 21,689
Total 103,969 103,969 69,150 34,819 106,448
Total public works 944,256 944,256 852,667 91,589 823,234
-90-
Exhibit D-1CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2013
(With comparative actual amounts for the year ended December 31, 2012)
2012
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2013
EXPENDITURES - CONTINUED
Current - continued
Culture and recreation
Personal services 139,719$ 139,719$ 133,518$ 6,201$ 139,022$
Supplies 20,800 20,800 23,726 (2,926) 18,266
Other services and charges 51,055 52,055 51,868 187 48,254
Total culture and recreation 211,574 212,574 209,112 3,462 205,542
Total current expenditures 3,880,088 3,881,088 3,806,028 75,060 3,756,505
Capital outlay
General government 200 200 322 (122) 2,811
Public safety 523,080 523,080 515,419 7,661 503,038
Public works 1,200 1,200 - 1,200 -
Total capital outlay 524,480 524,480 515,741 8,739 505,849
TOTAL EXPENDITURES 4,404,568 4,405,568 4,321,769 83,799 4,262,354
EXCESS OF REVENUES
OVER EXPENDITURES 859,402 858,402 1,041,358 182,956 1,044,041
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - 317,182 317,182 -
Transfers out (962,650) (962,650) (1,006,650) (44,000) (907,800)
TOTAL OTHER FINANCING
SOURCES (USES)(962,650) (962,650) (689,468) 273,182 (907,800)
NET CHANGE IN FUND BALANCES (103,248) (104,248) 351,890 456,138 136,241
FUND BALANCES, JANUARY 1 3,624,468 3,624,468 3,624,468 - 3,488,227
FUND BALANCES, DECEMBER 31 3,521,220$ 3,520,220$ 3,976,358$ 456,138$ 3,624,468$
-91-
Exhibit E-1CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2013
2007A 2007B 2007C 2008
Public Safety Public Safety Public Safety Lease Revenue
Building Building Building Bond Total
ASSETS
Cash and temporary investments 8,287$ (1,951)$ 784$ 3,213$ 10,333$
Due from other governments 6,315 6,315 1,487 - 14,117
Lease receivable 3,225,000 3,350,000 1,175,000 - 7,750,000
TOTAL ASSETS 3,239,602$ 3,354,364$ 1,177,271$ 3,213$ 7,774,450$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - lease 3,225,000$ 3,350,000$ 1,175,000$ -$ 7,750,000$
FUND BALANCES
Restricted for debt service 14,602 4,364 2,271 3,213 24,450
TOTAL DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES 3,239,602$ 3,354,364$ 1,177,271$ 3,213$ 7,774,450$
-92-
Exhibit E-2CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2013
2007A 2007B 2007C 2008
Public Safety Public Safety Public Safety Lease Revenue
Building Building Building Bond Total
REVENUES
Lease payments 399,875$ 410,228$ 162,410$ -$ 972,513$
EXPENDITURES
Debt service
Principal 255,000 260,000 110,000 50,000 675,000
Interest and service charges 142,625 147,978 50,160 50,450 391,213
TOTAL EXPENDITURES 397,625 407,978 160,160 100,450 1,066,213
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,250 2,250 2,250 (100,450) (93,700)
OTHER FINANCING SOURCES
Transfers in - - - 100,450 100,450
NET CHANGE IN FUND BALANCES 2,250 2,250 2,250 - 6,750
FUND BALANCES, JANUARY 1 12,352 2,114 21 3,213 17,700
FUND BALANCES, DECEMBER 31 14,602$ 4,364$ 2,271$ 3,213$ 24,450$
-93-
Exhibit F-1CITY OF SHOREWOOD, MINNESOTA
AGENCY FUND
COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2013
Balance Balance
January 1 Additions Deductions December 31
Developer Escrow Accounts
ASSETS
Cash and temporary investments 47,087$ 104,527$ (43,111)$ 108,503$
LIABILITIES
Escrow deposits payable 47,087$ 104,527$ (43,111)$ 108,503$
-94-
Exhibit G-1CITY OF SHOREWOOD, MINNESOTA
SUPPLEMENTARY INFORMATION
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
GOVERNMENTAL FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 2012
REVENUES
Taxes 4,764,472$ 4,783,939$ (0.41) %
Licenses and permits 204,600 175,087 16.86
Intergovernmental 76,544 76,102 0.58
Charges for services 92,549 121,625 (23.91)
Fines and forfeits 59,294 66,230 (10.47)
Interest on investments 37,461 61,584 (39.17)
Miscellaneous 1,234,312 1,115,836 10.62
TOTAL REVENUES 6,469,232$ 6,400,403$ 1.08 %
Per Capita 870$ 875$ (0.64) %
EXPENDITURES
Current
General government 1,249,616$ 1,288,704$ (3.03) %
Public safety 1,494,633 1,445,149 3.42
Public works 860,071 823,234 4.47
Culture and recreation 324,745 331,524 (2.04)
Capital outlay
General government 322 2,811 (88.55)
Public safety 515,419 503,038 2.46
Public works 605,761 655,125 (7.54)
Culture and recreation 1,539,328 69,084 2,128.20
Debt service
Principal 675,000 655,000 3.05
Interest and service charges 391,213 439,429 (10.97)
TOTAL EXPENDITURES 7,656,108$ 6,213,098$ 23.23 %
Per Capita 1,029$ 850$ 21.14 %
Total Long-term Indebtedness 8,840,000$ 9,515,000$ (7.09) %
Per Capita 1,188$ 1,301$ (8.67)
General Fund Balance - December 31 3,976,358$ 3,624,468$ 9.71 %
Per Capita 535$ 496$ 7.85
The purpose of this report is to provide a summary of financial information concerning the City of Shorewood to interested
citizens. The complete financial statements may be examined at City Hall, 5755 Country Club Road, Shorewood, Minnesota
55331. Questions about this report should be directed to Bruce DeJong, Finance Director at 952-960-7903.
Percent
Increase
(Decrease)
Total
-95-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-96-
STATISTICAL SECTION (UNAUDITED)
CITY OF SHOREWOOD
SHOREWOOD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
-97-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-98-
STATISTICAL SECTION (UNAUDITED)
This part of the City of Shorewood’s comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information says about
the government’s overall financial health.
Financial trends
These schedules contain trend information to help the reader understand how the government’s financial performance and well-
being have changed over time.
Revenue capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source, the
property tax.
Debt capacity
These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding
debt and the government’s ability to issue additional debt in the future.
Demographic and economic information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the
government’s financial activities take place.
Operating information
These schedules contain service and infrastructure data to help the reader understand how the information in the government’s
financial report relocates to the services the government provides and the activities it performs.
-99-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2004 2005 2006 2007
Governmental activities
Net investment in capital assets 12,167,269$ 11,372,213$ 11,690,620$ 10,960,550$
Restricted - - 24,632 -
Unrestricted 6,669,073 6,316,707 5,716,027 6,147,185
Total governmental activities net position 18,836,342$ 17,688,920$ 17,431,279$ 17,107,735$
Business-type activities
Net investment in capital assets 6,427,358$ 6,172,309$ 5,668,683$ 6,066,229$
Unrestricted 7,470,272 8,182,612 9,829,761 10,422,397
Total business-type activities net position 13,897,630$ 14,354,921$ 15,498,444$ 16,488,626$
Total primary government
Net investment in capital assets 18,594,627$ 17,544,522$ 17,359,303$ 17,026,779$
Restricted - - 24,632 -
Unrestricted 14,139,345 14,499,319 15,545,788 16,569,582
Total primary government 32,733,972$ 32,043,841$ 32,929,723$ 33,596,361$
Fiscal Year
-100-
Table 1
2008 2009 2010 2011 2012 2013
9,430,566$ 9,480,314$ 9,525,991$ 9,223,669$ 8,487,162$ 9,212,415$
- - - - - -
7,400,859 7,909,106 8,252,497 7,964,703 7,979,370 7,138,847
16,831,425$ 17,389,420$ 17,778,488$ 17,188,372$ 16,466,532$ 16,351,262$
6,631,854$ 6,482,297$ 6,494,996$ 6,675,613$ 6,494,076$ 6,705,907$
10,186,824 9,449,210 8,666,149 8,186,835 8,148,173 7,951,219
16,818,678$ 15,931,507$ 15,161,145$ 14,862,448$ 14,642,249$ 14,657,126$
16,062,420$ 15,962,611$ 16,020,987$ 15,899,282$ 14,981,238$ 15,918,322$
- - - - - -
17,587,683 17,358,316 16,918,646 16,151,538 16,127,543 15,090,066
33,650,103$ 33,320,927$ 32,939,633$ 32,050,820$ 31,108,781$ 31,008,388$
Fiscal Year
-101-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2004 2005 2006 2007
Expenses
Governmental activities
General government 1,074,028$ 1,222,510$ 1,357,714$ 1,321,971$
Public safety 2,972,094 1,690,903 1,806,915 1,819,250
Public works 2,451,825 5,019,967 2,275,402 1,971,571
Culture and recreation 254,081 246,381 233,881 258,906
Interest on long-term debt 607,862 606,189 600,723 1,000,230
Total governmental activities expenses 7,359,890 8,785,950 6,274,635 6,371,928
Business-type activities
Water 591,858 567,854 488,513 636,506
Sewer 735,480 740,174 785,638 952,107
Recycling 106,933 105,823 124,354 91,157
Stormwater management utility 106,757 73,885 171,190 63,888
Liquor 2,152,411 2,006,107 2,017,217 1,885,537
Total business-type activities expenses 3,693,439 3,493,843 3,586,912 3,629,195
Total expenses 11,053,329$ 12,279,793$ 9,861,547$ 10,001,123$
Program revenues
Governmental activities
Charges for services
General government 51,069$ 112,107$ 25,340$ 41,475$
Public safety 983,684 1,055,758 1,060,506 896,731
Public works - - - -
Culture and recreation 1,080 1,575 1,800 1,960
Operating grants and contributions 119,594 100,910 31,730 99,800
Capital grants and contributions 996,967 2,404,367 395,229 132,912
Total governmental activities program revenues 2,152,394 3,674,717 1,514,605 1,172,878
Business-type activities
Charges for services
Water 620,189 649,772 1,350,041 782,549
Sewer 866,350 833,939 836,175 832,956
Recycling 114,987 116,517 144,886 89,934
Stormwater management utility 85,978 102,649 129,708 164,413
Liquor 2,199,139 2,040,314 1,984,344 1,788,835
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities program revenues 3,886,643 3,743,191 4,445,154 3,658,687
Total program revenues 6,039,037$ 7,417,908$ 5,959,759$ 4,831,565$
Fiscal Year
-102-
Table 2
2008 2009 2010 2011 2012 2013
1,483,913$ 1,486,281$ 1,235,098$ 1,405,791$ 1,331,286$ 1,310,296$
1,906,890 1,904,966 1,893,413 1,960,894 1,947,868 2,010,338
2,485,752 1,941,272 2,231,473 2,031,136 2,162,123 1,884,986
273,054 394,110 452,437 412,257 460,879 471,784
1,002,423 638,768 474,082 449,773 428,887 379,685
7,152,032 6,365,397 6,286,503 6,259,851 6,331,043 6,057,089
657,776 659,113 643,886 690,363 689,205 693,193
921,238 955,956 980,173 1,151,626 1,065,926 847,097
96,945 99,286 173,896 174,857 187,713 181,537
106,143 106,847 131,107 233,035 273,846 107,935
16,167 129 25 - - -
1,798,269 1,821,331 1,929,087 2,249,881 2,216,690 1,829,762
8,950,301$ 8,186,728$ 8,215,590$ 8,509,732$ 8,547,733$ 7,886,851$
32,528$ 34,064$ 53,381$ 108,394$ 144,883$ 187,628$
793,041 634,742 624,330 544,749 604,400 599,810
- 6,279 - 6,293 4,137 226
605 35,843 58,661 72,678 79,206 120,794
90,493 90,681 99,114 113,717 102,959 144,112
674,343 43 114,330 - - -
1,591,010 801,652 949,816 845,831 935,585 1,052,570
752,338 784,318 668,676 672,793 757,395 537,713
829,117 802,252 845,043 819,496 831,640 834,320
64,629 65,112 146,002 151,894 157,585 165,713
204,618 191,157 198,593 196,070 193,931 194,950
- - - - - -
27,950 28,488 28,762 33,586 23,007 25,830
- - - 15,000 22,400 53,200
1,878,652 1,871,327 1,887,076 1,888,839 1,985,958 1,811,726
3,469,662$ 2,672,979$ 2,836,892$ 2,734,670$ 2,921,543$ 2,864,296$
Fiscal Year
-103-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2004 2005 2006 2007
Net revenues (expenses)
Governmental activities (5,207,496)$ (5,111,233)$ (4,760,030)$ (5,199,050)$
Business-type activities 193,204 249,348 858,242 29,492
Total primary government (5,014,292)$ (4,861,885)$ (3,901,788)$ (5,169,558)$
General Revenues and Other Changes in Net Position
General Revenues
Governmental activities
Taxes
Property taxes, levied for general purpose 3,345,326$ 3,770,702$ 4,144,543$ 4,360,254$
Grants and contributions not restricted to specific programs 4,723 4,785 4,925 37,746
Unrestricted investment earnings 127,853 201,024 327,921 621,234
Gain on sale of capital assets - 4,300 - -
Transfers 5,000 (17,000) 25,000 (143,728)
Total governmental activities general revenues 3,482,902 3,963,811 4,502,389 4,875,506
Business-type activities
Unrestricted investment earnings 144,163 190,943 310,281 434,072
Gain on sale of capital assets - - - 382,890
Transfers (5,000) 17,000 (25,000) 143,728
Total business-type activities general revenues 139,163 207,943 285,281 960,690
Total primary government 3,622,065$ 4,171,754$ 4,787,670$ 5,836,196$
Change in Net Position
Governmental activities (1,724,594)$ (1,147,422)$ (257,641)$ (323,544)$
Business-type activities 332,367 457,291 1,143,523 990,182
Total primary government (1,392,227)$ (690,131)$ 885,882$ 666,638$
Fiscal Year
-104-
Table 2
2008 2009 2010 2011 2012 2013
(5,561,022)$ (5,563,745)$ (5,336,687)$ (5,414,020)$ (5,395,458)$ (5,004,519)$
80,383 49,996 (42,011) (361,042) (230,732) (18,036)
(5,480,639)$ (5,513,749)$ (5,378,698)$ (5,775,062)$ (5,626,190)$ (5,022,555)$
4,582,909$ 4,743,174$ 4,744,348$ 4,733,948$ 4,761,213$ 4,768,989$
19,957 4,940 4,487 4,751 6,019 5,818
641,846 333,626 132,359 56,705 61,584 37,461
- - 31,130 28,500 - 76,981
40,000 1,040,000 813,431 - - -
5,284,712 6,121,740 5,725,755 4,823,904 4,828,816 4,889,249
289,669 102,833 85,080 62,345 64,135 32,913
- - - - - -
(40,000) (1,040,000) (813,431) - - -
249,669 (937,167) (728,351) 62,345 64,135 32,913
5,534,381$ 5,184,573$ 4,997,404$ 4,886,249$ 4,892,951$ 4,922,162$
(276,310)$ 557,995$ 389,068$ (590,116)$ (566,642)$ (115,270)$
330,052 (887,171) (770,362) (298,697) (166,597) 14,877
53,742$ (329,176)$ (381,294)$ (888,813)$ (733,239)$ (100,393)$
Fiscal Year
-105-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2004 2005 2006 2007
General fund
Reserved -$ 48,593$ -$ -$
Unreserved 2,941,223 2,944,588 3,383,906 3,761,509
Nonspendable - - - -
Unassigned - - - -
Total general fund 2,941,223$ 2,993,181$ 3,383,906$ 3,761,509$
All other governmental funds
Reserved 191,410$ 238,873$ 262,438$ 10,040,556$
Unreserved, reported in
Special revenue funds - - - -
Capital project funds 3,566,803 3,116,437 2,197,367 2,473,097
Nonspendable - - - -
Restricted - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds 3,758,213$ 3,355,310$ 2,459,805$ 12,513,653$
Fiscal Year
Note: The City implemented GASB 54 in fiscal year 2011, resulting in significant reclassification of the components of fund balance.
Years prior to 2011 have not been restated.
-106-
Table 3
2008 2009 2010 2011 2012 2013
47,750$ 500$ 49,060$ -$ -$ -$
3,660,359 3,555,224 3,477,932 - - -
- - - 48,000 50,000 33,016
- - - 3,440,227 3,574,468 3,943,342
3,708,109$ 3,555,724$ 3,526,992$ 3,488,227$ 3,624,468$ 3,976,358$
10,033,342$ 1,934,628$ 96,333$ -$ -$ -$
- - (17,650) - - -
3,743,980 4,252,870 4,520,558 - - -
- - - 150,068 150,068 150,068
- - - 30,439 17,700 24,450
- - - 4,229,528 4,368,656 3,117,434
- - - - (75,325) (52,437)
13,777,322$ 6,187,498$ 4,599,241$ 4,410,035$ 4,461,099$ 3,239,515$
Fiscal Year
-107-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2004 2005 2006 2007
Revenues
Taxes 3,344,442$ 3,750,633$ 4,141,539$ 4,332,741$
Licenses and permits 310,055 334,720 382,408 256,472
Intergovernmental 1,014,410 2,432,656 365,732 224,286
Charges for services 44,169 50,752 45,450 50,819
Fines and forfeitures 81,841 90,149 79,040 77,777
Special assessments 10,737 6,928 895 418
Interest on investments 127,853 201,024 327,921 621,234
Miscellaneous 740,030 1,134,429 1,110,860 1,077,012
Total revenues 5,673,537 8,001,291 6,453,845 6,640,759
Expenditures
General government 1,037,043 1,169,096 1,264,509 1,253,223
Public safety 1,028,689 1,124,620 1,257,998 1,263,921
Public works 477,596 570,080 626,048 718,350
Culture and recreation 168,278 167,519 169,411 190,931
Capital Outlay 2,896,330 4,307,721 2,571,204 1,123,796
Debt service
Principal 48,069 384,842 486,728 534,594
Interest and service charges 637,397 611,358 607,727 956,532
Bond issuance costs - - - -
Total expenditures 6,293,402 8,335,236 6,983,625 6,041,347
Excess (deficiency) of revenues
over (under) expenditures (619,865) (333,945) (529,780) 599,412
Other financing sources (uses)
Transfers in 328,500 542,000 635,000 770,091
Sale of capital assets - - - -
Proceeds from sale of bonds - - - 10,000,000
Bonds refunded - - - -
Discount on long-term debt issued - - - (24,233)
Transfers out (323,500) (559,000) (610,000) (913,819)
Total other financing
sources (uses)5,000 (17,000) 25,000 9,832,039
Net change in fund balances (614,865)$ (350,945)$ (504,780)$ 10,431,451$
Debt service as a percentage of
Noncapital expenditures 11.2%12.7%20.1%26.3%
Fiscal Year
-108-
Table 4
2008 2009 2010 2011 2012 2013
4,582,602$ 4,703,368$ 4,717,204$ 4,787,195$ 4,783,939$ 4,764,472$
195,419 127,883 154,113 174,119 175,087 204,600
753,605 66,411 173,334 72,968 76,102 76,544
50,753 41,649 100,899 102,500 121,625 92,549
53,369 52,968 55,806 52,635 66,230 59,294
- - 333 - - -
641,846 333,626 132,359 56,705 61,584 37,461
1,053,916 1,059,914 1,037,522 1,032,566 1,115,836 1,234,312
7,331,510 6,385,819 6,371,570 6,278,688 6,400,403 6,469,232
1,443,549 1,386,614 1,147,198 1,306,948 1,288,704 1,249,616
1,352,254 1,392,139 1,392,923 1,460,664 1,445,149 1,494,633
760,287 670,954 859,069 866,413 823,234 860,071
229,259 326,502 342,654 343,326 331,524 324,745
2,164,366 1,953,756 2,075,109 1,457,001 1,230,058 2,660,830
485,000 520,000 600,000 625,000 655,000 675,000
977,957 818,063 516,167 447,307 439,429 391,213
58,569 - - - - -
7,471,241 7,068,028 6,933,120 6,506,659 6,213,098 7,656,108
(139,731) (682,209) (561,550) (227,971) 187,305 (1,186,876)
933,366 2,059,773 1,942,550 984,541 1,170,216 2,482,650
- - 31,130 - - 317,182
1,310,000 - - - - -
- (8,100,000) (1,900,000) - - -
- - - - - -
(893,366) (1,019,773) (1,129,119) (984,541) (1,170,216) (2,482,650)
1,350,000 (7,060,000) (1,055,439) - - 317,182
1,210,269$ (7,742,209)$ (1,616,989)$ (227,971)$ 187,305$ (869,694)$
23.1%22.4%19.1%18.4%18.3%18.5%
Fiscal Year
-109-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY, MARKET VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
(Shown by year of tax collectability)
Taxable market value
Personal property
Real estate
Total taxable market value
Estimated actual value of taxable property
Taxable market value as a percentage of
estimated actual value 73.30 %75.92 %93.39 %95.26 %
Tax capacity
Personal property
Real estate
Total tax capacity
Contribution to fiscal disparities pool
Receivable from fiscal disparities pool
Net tax capacity
Tax levies
General
Debt service
Total
Direct tax rate
General 25.843 %25.971 %25.408 %23.501 %
Debt service 4.552 3.870 3.535 3.439
Total 30.396 %29.841 %28.944 %26.940 %
2004
3,831,300$ 4,130,300$
1,033,460,200 1,173,029,000
4,361,600$ 4,591,200$
1,318,313,000 1,475,529,200
3,830,656$
3,678,592$
511,803
200720062005
85,635$ 81,333$
14,269,195
16,219,969
(308,590)
407,687
10,980,358
11,055,767
(200,062)
89,872$
1,480,120,400$
1,553,767,900$ 1,415,129,000$
1,037,291,500$ 1,177,159,300$
1,550,488,900$
75,409$
1,416,341,600$
1,322,674,600$
4,190,395$
396,666
14,354,830
12,590,290
12,671,623
379,072
3,420,229$
3,333,864$
496,792 512,232
(213,988)
16,319,066$
16,130,097
Note: Property in the county is reassessed annually. The county assesses property at approximately 90 percent of actual value for all
types of real and personal property.
Source: Hennepin County Assessor
3,835,173$
(276,939)
399,944
11,252,371$ 12,836,707$
2,907,997$
14,477,835$
561,135
4,396,308$
-110-
Table 5
97.35 %98.93 %99.91 %99.89 %98.77 %98.61 %
22.793 %22.463 %22.771 %24.790 %26.141 %31.516 %
3.119 3.336 3.372 3.604 - -
25.912 %25.799 %26.143 %28.394 %26.141 %31.516 %
4,764,900$
1,597,262,400 1,651,054,700
4,629,900$ 4,948,300$
1,631,938,000 1,507,900,600
4,336,600$
2010
478,935
4,611,995$
95,216$
16,620,629
2008 20112009
18,396,662
(396,336)
513,259
84,780$
1,645,188,300$
1,601,599,000$
(389,965)
435,462
4,763,319$
604,647
4,158,672$
16,775,778$
4,158,672$
-
4,158,672$
15,908,723$
(419,002)
15,863,226 16,715,845 17,704,723
(351,789)
17,619,943
445,780
4,056,917$
18,305,114
88,848$
18,087,557
4,160,292$
18,269,931$
18,176,405
(432,995)
4,158,672$
18,513,585$ 17,798,714$
526,521
2013
6,006,500$
1,367,209,584
1,373,216,084$
1,392,562,700$
113,130$
15,025,751
15,138,881
91,548$
1,655,819,600$
1,673,720,100$
5,291,700$
2012
1,636,567,900$
1,638,118,400$ 1,514,456,700$
1,430,712,101
1,512,848,900$
15,761,142
1,436,003,801$
1,453,867,700$
102,084$
(393,282)
368,528
15,114,127$
4,763,319$
-
4,763,319$
616,000
4,776,292$
617,620
4,776,292$
555,078
-111-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF TAX CAPACITY IN 2004 - 2013)
Year
Taxes
Payable City County No. 276 No. 277
2004 30.396 %47.324 23.125 14.354 0.768 0.732 7.488 %
2005 29.841 44.172 21.989 16.250 1.276 1.375 7.382
2006 28.944 41.016 22.952 10.522 1.072 0.787 6.998
2007 26.940 39.110 24.793 9.911 1.121 0.743 7.310
2008 25.912 38.571 17.980 8.521 1.404 1.302 7.397
2009 25.799 40.413 17.186 8.284 1.489 1.246 7.154
2010 26.143 42.640 18.657 9.772 1.511 1.279 8.138
2011 28.394 45.840 21.274 10.900 1.606 1.352 9.172
2012 26.141 48.231 23.015 17.262 1.705 1.387 9.923
2013 31.516 49.461 24.487 18.119 1.769 1.523 10.089
Source: Hennepin County Assessor
(1) Includes vocational school
No. 3 No. 4 Misc.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates
apply to all City property owners (e.g. the rates for special districts apply only to the proportion of the government's property owners
whose property is located within the geographic boundaries of the special district).
School District
(1)
Watershed District
Overlapping Rates
-112-
Table 6
109.101 %109.065 %100.330 %
104.660 104.759 98.921
100.982 100.697 88.552
99.274 98.896 84.392
91.264 91.162 81.805
92.041 91.798 83.139
97.089 96.857 88.204
106.286 106.032 95.912
109.015 108.697 103.262
117.322 117.076 110.954
No. 3No. 3 No. 4
Totals
School District No. 276
District
School
District
No. 277
Watershed
District
Watershed Watershed
District
-113-
Table 7CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Tax Tax
Taxpayer Capacity Rank Capacity Rank
Big Box One, LLC 142,230$ 1 0.94 %88,610$ 1 0.79 %
Shorewood Village Shopping Center, Inc.
(Towle Real Estate)139,650 2 0.92 69,450 3 0.62
Two S Properties (Shurgard Storage)103,330 3 0.68 71,530 2 0.64
South Lake Office Building LLC 82,650 4 0.55 - - -
W of Shorewood LLC 57,650 5 0.38 - - -
Beacon Bank 56,870 6 0.38 42,710 7 0.38
Elaine & Gary Jarrett 53,900 7 0.36 - - -
Waterford Center LLP 47,410 8 0.31 40,250 9 0.36
Minnetonka Country Club 46,630 9 0.31 51,210 5 0.46
Steven R. Litman Trust 45,938 10 0.30 - - -
Kimberley & Frank Vennes - - - 53,125 4 0.47
Xcel Energy - - - 43,462 6 0.39
The Mary Sue Simon Qprt - - - 40,655 8 0.36
Thomas J. & Cynthia J. Redmond - - - 37,813 10 0.34
Totals 776,258$ 5.14 %538,815$ 4.79 %
Source: Hennepin County Assessor
Tax Capacity
of Total
Tax Capacity
Percent
2013 2004
Percent
of Total
-114-
Table 8CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1)
Collection Collection
Fiscal Total of Current in subsequent Total
Year Levy Year's Levy years Collections
2004 3,420,229$ 3,390,137$ 99.12 %29,754$ 3,419,891$ 99.99 %
2005 3,830,656 3,783,074 98.76 46,458 3,829,532 99.97
2006 4,190,395 4,145,829 98.94 41,120 4,186,949 99.92
2007 4,396,308 4,320,289 98.27 77,258 4,397,547 100.03
2008 4,611,995 4,546,899 98.59 61,628 4,608,527 99.92
2009 4,776,292 4,649,904 97.35 116,800 4,766,704 99.80
2010 4,776,292 4,685,060 98.09 82,249 4,767,309 99.81
2011 4,763,319 4,706,900 98.82 46,688 4,753,588 99.80
2012 4,763,319 4,717,658 99.04 37,926 4,755,584 99.84
2013 4,763,319 4,720,748 99.11 - 4,720,748 99.11
Percent
Collections
of Total
(1) Includes state paid property tax credits.
Percentage
of Levy
Collected to Levy
-115-
Table 9CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIO OF NET BONDED DEBT TO
ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Business-
type
Activities
General Lease General Total
Fiscal Obligation Revenue Capital Obligation Primary Per
Year Bonds Bonds Leases Revenue Bonds Government Capita
2004 -$ 12,365,000$ 131,134$ 2,170,000$ 14,666,134$ 4.04 %1,923$
2005 - 12,010,000 101,322 2,745,000 14,856,322 4.00 1,967
2006 - 11,555,000 69,594 3,920,000 15,544,594 4.12 2,073
2007 - 21,090,000 - 3,665,000 24,755,000 6.31 3,301
2008 - 21,915,000 - 3,415,000 25,330,000 5.87 3,199
2009 - 13,295,000 - 3,165,000 16,460,000 4.14 2,076
2010 - 10,795,000 - 2,915,000 13,710,000 3.19 1,876
2011 - 10,170,000 - 2,675,000 12,845,000 2.96 1,785
2012 - 9,515,000 - 2,500,000 12,015,000 2.86 1,643
2013 - 8,840,000 - 3,540,000 12,380,000 2.83 1,664
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics table on page 121 for personal income and population data.
Personal
Income
Governmental Activities
Percentage of
-116-
Table 10CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2013
Gross Amount
Bonded of
Debt Used Net Debt
For Net Debt Net Applicable
Calculation Debt to District
Direct Debt
City of Shorewood 8,840,000$ 8,840,000$ 100.00 %8,840,000
Overlapping Debt
School District #276 125,062,181$ 98,298,831$ 19.36 %19,030,654$
School District #277 32,295,000 31,762,414 2.15 682,892
Hennepin County 735,600,000 723,264,582 1.17 8,462,196
Henn Suburban Park District 74,395,000 54,166,123 1.60 866,658
Henn Regional RR Authority 37,675,000 37,350,216 1.60 597,603
Metropolitan Council 219,230,000 158,664,771 0.54 856,790
Total Overlapping Debt 1,224,257,181$ 1,103,506,937$ 2.76 %30,496,792$
Total Direct and Overlapping Debt 1,233,097,181$ 1,112,346,937$ 3.54 %39,336,792$
Sources : Market value data used to estimate applicable percentages provided by the County Board of Equalization
and Assessment. Debt outstanding data provided by the county.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognized that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
* The percentage of overlapping debt applicable is estimated using taxable market property values. Applicable
percentages were estimated by determining the portion of the county's taxable market value that is within the City's
boundaries and dividing it by the county's total taxable market value.
District
Applicable to
Percentage
-117-
CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2004 2005 2006 2007
Debt limit 20,745,830$ 23,543,186$ 26,453,492$ 29,602,408$
Total net debt applicable to limit - - - -
Legal debt margin 20,745,830$ 23,543,186$ 26,453,492$ 29,602,408$
Total net debt applicable to the limit
as a percentage of debt limit -$ -$ -$ -$
Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of
taxable property. The percentage was changed to 3 percent for fiscal year 2008, prior to that, the percentage was 2 percent.
By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment
of those obligations.
Fiscal Year
-118-
Table 11
2008 2009 2010 2011 2012 2013
32,031,980$ 33,116,392$ 32,731,358$ 45,385,467$ 43,080,114$ 41,196,483$
- - - - - -
32,031,980$ 33,116,392$ 32,731,358$ 45,385,467$ 43,080,114$ 41,196,483$
-$ -$ -$ -$ -$ -$
Legal Debt Margin Calculation for Fiscal Year 2012
Taxable market value 1,373,216,084$
Debt limit (3% of market value)41,196,483$
Debt applicable to limit
General obligation bonds -
Less: amount available in
debt service funds -
Total net debt applicable to limit -
Legal debt margin 41,196,483$
Fiscal Year
-119-
Table 12CITY OF SHOREWOOD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(1)Net
Fiscal Gross (2)Revenue
Year Revenue Expenses Available Principal Interest
2004 676,287$ 314,513$ 361,774$ 190,000$ 86,907$ 1.31 %
2005 720,438 300,858 419,580 950,000 88,712 0.40
2006 1,264,892 223,243 1,041,649 275,000 79,456 2.94
2007 765,717 259,056 506,661 255,000 81,165 1.51
2008 857,890 278,164 579,726 250,000 172,050 1.37
2009 821,778 250,995 570,783 250,000 142,589 1.45
2010 700,678 238,780 461,898 250,000 125,407 1.23
2011 718,561 299,962 418,599 240,000 116,728 1.17
2012 809,746 313,620 496,126 175,000 100,668 1.80
2013 595,599 300,232 295,367 185,000 75,630 1.13
(1) Including interest and other income
(2) Excluding depreciation and interest on bonds
Revenue from
Fiscal Property
Year Taxes Principal Interest
2004 37,544$ 28,069$ 9,475$ 1.00 %
2005 37,544 29,842 7,702 1.00
2006 37,544 31,728 5,816 1.00
2007 73,406 69,594 3,812 1.00
2008 - - - -
2009 - - - -
2010 - - - -
2011 - - - -
2012 - - - -
2013 - - - -
Revenue from
Fiscal Lease
Year Payments Principal Interest
2004 620,596$ -$ 624,650$ 0.99 %
2005 948,384 355,000 588,384 1.01
2006 1,040,693 455,000 589,056 1.00
2007 1,034,751 465,000 941,222 0.74
2008 1,037,241 485,000 970,065 0.71
2009 992,835 495,000 737,863 0.81
2010 982,037 555,000 457,840 0.97
2011 902,003 575,000 393,357 0.93
2012 978,744 605,000 372,230 1.00
2013 972,513 625,000 335,513 1.01
General Obligation Revenue Bonds
Coverage
Capital Leases
Coverage
Coverage
Lease Revenue Bonds
Debt Service
Debt Service
Debt Service
-120-
Table 13CITY OF SHOREWOOD, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Total Per Capita
Fiscal Personal Personal Median
Year Population (1)Income (2)Income (2)Age (3)
2004 7,625 362,787,795$ 48,045$ 38.7 4.3 %
2005 7,551 371,695,434 49,566 38.7 3.8
2006 7,499 377,246,826 49,566 38.7 3.3
2007 7,611 392,414,022 49,566 38.7 4.7
2008 7,917 431,535,825 54,425 39.0 7.3
2009 7,929 397,683,475 54,425 39.0 7.4
2010 7,307 429,651,600 58,800 39.1 5.1
2011 7,307 433,743,520 59,360 44.2 51.1 %5.7
2012 7,312 420,264,512 57,476 44.1 49.8 4.6
2013 7,438 438,083,324 58,898 43.6 56.4 3.8
Data Sources:
(1) Metropolitan Council
(2) Bureau of Economic Analysis
(3) US Census Bureau
(4) US Census Bureau 2000
(5) Minnesota Department of Employment and Economic Development - Hennepin County
Percent of
Population
Which Has a
Bachelor's or Post
Graduate Degree (4)Rate (5)
Unemployment
Note: Population, median age, and education level information are based on surveys conducted during the last quarter of the
calendar year. Personal income information is a total for the year. Unemployment rate information is an adjusted yearly average.
School enrollment is based on the census at the start of the school year.
-121-
Table 14CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (1)
Employees Rank Employees Rank
Cub Foods 120 10.64 %- N/A %
Minnewashta Elementary School 116 10.28 - N/A
Xcel Energy 79 7.00 - N/A
Beacon Bank 35 3.10 - N/A
Minnetonka County Club 33 2.93 - N/A
City of Shorewood 26 *2.30 - N/A
Total 409 36.26 %- - %
Total City Employment 1,128
Source: Minnesota Department of Employment and Economic Development
* Includes part-time and temporary seasonal employees.
N/A - indicates not available
(1) Information for 2004 was not available. The table will be updated for future years.
Employer
Percentage
of Total City
Employment
20042013
Percentage
of Total City
Employment
-122-
Table 15CITY OF SHOREWOOD, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS (1)
2006 2007 2008 2009 2010 2011 2012 2013
General government 13 13 13 12 12 10 10 9
Public works
Engineering - - - - - 1 1 -
Maintenance 6 6 6 6 6 5 5 6
Culture and recreation
Parks 13 5 5 5 5 3 3 2
Economic development
Water 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1
Sewer 1.5 1.5 1.5 1.5 1.5 1.5 1.5 2
Municipal Liquor 3 2 - - - - - -
Total 38 29 27 26 26 22 22 20
Source: City of Shorewood
(1) Information prior to 2006 was not maintained by the City. The table will be updated on a go-forward basis.
Function
-123-
Table 16CITY OF SHOREWOOD, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS (1)
2006 2007 2008 2009 2010 2011 2012 2013
Building/engineering
Permits issued 1,137 710 686 603 591 512 585 481
Public works
Street sweeping (hours)1,000 1,614 1,500 1,550 1,400 1,600 1,600 1,400
Snowplowing (hours)2,000 1,394 1,508 765 1,024 895 616 1,403
Equipment repair (hours)2,080 2,080 2,080 2,080 1,280 1,591 1,725 1,716
Water
New connections 24 22 13 11 1 2 3 9
Water mains breaks 3 7 3 3 5 6 7 3
Average daily consumption (thousands of gallons)482,000 482,000 482,000 467,600 467,600 465,300 465,300 465,300
Sewer
Average daily treatment flow (thousands of gallons)1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Source: City of Shorewood
Note: Indicators are not available for the general government function.
(1) Information prior to 2006 was not maintained by the City. The table will be updated on a go-forward basis.
Function
-124-
Table 17CITY OF SHOREWOOD, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS (1)
2006 2007 2008 2009 2010 2011 2012 2013
Public works
Highways and streets
Streets (miles)50 51 51 51 51 51 51 51
Street lights 194 194 194 194 194 194 194 194
Traffic signals 5 5 5 5 5 5 5 5
Culture and recreation
Parks division
Parks 7 7 7 7 7 7 7 7
Parks acreage 102 102 102 102 102 102 102 102
Baseball diamonds 5 5 5 5 5 5 5 5
Basketball courts 1 1 1 1 1 1 1 1
Bike trails (miles)2.45 2.45 2.45 2.45 2.45 2.45 2.45 4.00
Hockey rinks/outdoor 3 3 3 3 3 3 3 3
Softball diamonds 3 3 3 3 3 3 3 3
Swimming areas 1 1 1 1 1 1 1 1
Tennis courts 5 5 5 5 5 5 5 5
Volleyball courts 2 2 2 2 2 2 2 2
Utilities
Water
Miles of water main 27 28 28 28 28 28 28 28
Consumers 1,265 1,297 1,310 1,321 1,322 1,324 1,327 1,336
Maximum daily capacity (gallons)919,000 919,000 919,000 919,000 919,000 919,000 919,000 919,000
Sewer
Miles of sanitary sewer 60 60 60 60 60 60 60 60
Lift stations 14 14 14 14 14 14 14 14
Maximum daily treatment capacity (gallons)1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Storm sewer
Miles of storm sewer 12 12 12 12 12 12 12 12
Source: City of Shorewood
Note: No capital asset indicators are available for the general government function.
(1) Information prior to 2006 was not maintained by the City. The table will be updated on a go-forward basis.
Function
-125-