062804-2003AnnualFinancialRpt
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CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31,2003
CRAIG DAWSON, CITY ADMINISTRATOR
REPORT PREPARED BY
BONNIE BURTON, FINANCE DIRECTOR/TREASURER
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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CITY OF SHOREWOOD, MINNESOTA
TABLEOFCONTENTS-CONT~ED
DECEMBER 31,2003
Exhibit
Page No.
Combining and Individual Fund and Account Group Financial Statements and Schedules - Continued
Recycling Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Stormwater Management Utility Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Liquor Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
Combining Balance Sheets
Combining Schedules of Revenue, Expenses and Changes in Retained Earnings
(Deficit)
Combining Schedules of Cash Flows
General Fixed Asset Account Group
Comparative Schedules of General Fixed Assets - by Source
Schedule of General Fixed Assets - by Function and Activity
Schedule of Changes in General Fixed Assets - by Function
General Long-term Debt Account Group
Comparative Statements of General Long-term Debt
Schedule of Bonds Payable
Schedule of Debt Service Requirements
III.
STATISTICAL SECTION (UNAUDITED)
General Fund Expenditures and Other Uses by Function
General Fund Revenue and Other Sources by Source
Property Tax Levies and Collections
Assessed Valuation, Tax Levies and Mill Rates
Property Tax Capacity Rates - Direct and Overlapping Govermnents
Principal Taxpayers
Special Assessment Levies and Collections
Computation of Legal Debt Margin
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage
Property Value and Construction
Miscellaneous Statistics
D-lO 56
D-ll 57
D-12 58
D-13 59
D-14 60
D-15 61
D-16 62
D-17 63
D-18 64
D-19 65 - 66
D-20 67 - 68
D-21 69 - 70
E-l 71
E-2 72
E-3 73
F-l 74
F-2 75 - 76
F-3 77 - 78
Table
1 79
2 80
3 81
4 82 - 83
5 84 - 85
6 86
7 87
8 88
9 89
10 90
11 91
12 92
13 93
14 94
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Sft. ACCOUNTING
CLERK
ACCOUNTING
CLERK
Personnel I HR
Accounting
Payroll
Investments
Utility Billing
Accts. Payable
Accts. Receivable
Special Assessments
Budgeting
MIS
Purchasin
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CITY OF SHOREWOOD ORGANIZATION CHART
CITY COUNCIL
EXECUTIVE SECRETARY!
DEPUTY CLERK
RECEPTIONIST!
PARK SECRETARY
COMMUNICATIONS
TECHNICIAN
Off-Sale Retail
General Government
Licensing
Elections
Records
Legal Publications
Public Information
Cable TV Franchise
CONTRACTED SERVICES
ASSESSOR-HENNEPIN COUNTY
RECYCUNG---EZ RECYCLING
ANIMALCONTRO~Y OF ORONO
ANIMAL IMPOUND--PAWS, CLAWS & HOOVES
FIRE (Is1aods)---MOUND
CITY ATTORNEY
SECRETARY!
RECEPTIONIST
ADVISORY BOARDS
PARK COMMISSION
PLANNING COMMISSION
LAND CONSERVATION &
ENVIRONMENT
COMMITTEE (LCEC)
Planning
Zoning Administration
Property Records
Inspection
POLICE - SLMPD
FIRE - EXCELSIOR FIRE DISTRICT
LMCC . Lake Minoetonka
Communications Commission
LMCD - Lake MiDDetonkaCouservation
District
Building and Grounds Engineering Services
Tree Maintenance Project Mgmt
Park Maintenance Water Maintenance
Street Maintenance Sewer Mainrenance
Equipment Maintenance SanitationlW eeds
Stormwater System Street Lighting
Park Planning IRecreation Programs
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CITY OF
SHOREWOOD
5755 COt..JNTRY CLUB ROAD. SHOREVIIOOD, MINNESOTA55331-8927. (952) 474-3236.
FAX (952L474-0148 . www.cLshorewood.mD.us- cityhall@ci.shOfewood;mn.us
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May 1,2004 '-
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To the Honorable Mayor, Membersl)f theCitJ Courici1, and'Citizens 6f the
City.ofShorewood, Minnesota .
Welke submitting the Comprehensive Annual Financial Report of the City of 5horewood' Minnesota;
for the fiscal year ended December 31, 2003. The report consists of management's representations
concerning the finance~ of the City of Shore wood. Consequ~ntly, thedty assumes full responsibility .
for the completeness and reliability of all of the information presented in this report. To the be~ of
out knowledge and. belief,/theenC1o~ed data are acc~ate in all material resp~cts andare regprted in a
manner designed to present fairlytl1e financialpositiollimd results of operations of the various fund~
and account groups of the City.
INDEPENDENTAUDIT
Minnesota State StAtutes requ'ire an annual auditof die City's accounts 'by the Minnesota State
Auditor or by independent certified publicaccounfants.~Tlle City of Shore~ood's. financial
statements have.been audit~d by the !firmofAbdo,Ei~k &Mey~r-s, LLP, a}irm of.independent
certified public accountants. The goal of the. indepepdennrudit was toprovidej reasonable ass\1fance
that the financial statements of the City of Shorewooo for the.fiscal year ended December 31,2003;
are free of material misstatement. The independent auditor's'teporf is presented as the first.
component ofthefinanciatsection oftllis report. .
""
INTERNAL CONTROLS -.
City . management staff has established a\cbmprehen~ive. interna19ont~ol fra.IJlework . that it designed
both to protect the g()vernment'sas~ets from loss, theft, or misuse, andh)'compjJesufficientrelia,ble
info11ll,ll.tion for the preparatiqn of the City of Shorewood's finanCial statements in conformity with
- .GAAP. Because the cost of jntefl)-al controls should not outweigh the!r benefits, the<::ityofj
.Shorewood's comprehensive fr.a.niewmk of internal controls,has beendesi~ed t() provide reasonabl~.j
rather than absolute assuranceth~t the financial statements will be free from material misstatement!,
The internal control system is evaluated as part of the annual audit, and changes .are recommended
/when needed. As man~gement, We assert that, to the beSt of our knowJedge and .belief,thil:) financial.
report is complete and re1iabl~ in a.ll.material aspects.
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ORGANIZATIQN OF THE /J.EPORT !.. !. .
The COtnprehensive Annual Financial Report is presented in three sections: Introductory, Fin~cial
and Statistical.-The Introductory section includes this transmittal letter, the City's organizational chart
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't.~ PRINTED ON RECYCLED PAPEH
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and a list of City officrals. ,ThePinancial sectiQrt~}nclud~~the generaH>urpose' financial statements
and the combining~nd individual fund and ~ccoilnt group flJlancial statements and schedUles~along
with the auditor:s report on the financial statements. The Statistical.section,inc1udes finanpialiand
demogniphic information,generally'presented()n a multi-year basis. This, report, iJ1cludesan' funds
and accolmt -groups Of the City, including governmental and proprietary fund types. and geIleral fixel;i
assets and genetallong-term debt account groups. ~
The organization, fonn, andconteIits of this report were prepared, in ~ccordance 'rith the standards
prescribed by the Governmental {\ccountirig Standards Board, the Government. Finance Officers
Association of the United States and Canada, the American Institu'te' of Certified Public Accountants,
and the Minnesota State Auditor's Office.
PROFILE OF/THE GOVERNMENT
The City Qf Shorewpod was incorporated in 1956 and is a suburb of t~e City of Minneapolis. It is
located 25 miles south\Vest of the Twin Cities on the southern shore of Lake Miml~tonka'l'he Cit:y is.
predomi]1antly a residential conununity with limited commercial'" businesses and two comtneicial
shopping malls. The City is6 square miles in are~ and had an estimated popu!ationof 1;740 as of
2003. , The City, which iscurn5ntly 95%developed<willcontinue to expenencegrowthinits
residential base in the future but becallse of the limited availability of large tracts.ofland; this gtowth
will come at a reduced rate and will be much smatter developments than in the i>ast.
The City of Sliorew6od operates under the Council-Administrator form/of government. Policy
/ making and'legislative authoritfare vested in a, governing coun(;il consisting of the mayor and four
other members. The governing council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees, apd hiring employees and consulting staff. l'heCity',
Administrator is responsible for carryingoutthe policiesandordinallces oftne goveqting council; and
for overseeing the day-to-day~.()p~rations of the ~OveI'Ilment. The council is elected.on anon-parti!)~n
basis. Council memhersserv~. four-year staggered terms, with two council members 'elected every
two years.,. The mayor is elected.to serve a two-year term. The City Council will transition!oaward
basis of election for terms ~ginning in 2005, and ptoper staggering pf terms will be regained in2oo7~
The ECQnomic Development Authority (EDA) of the City was created in 20()1 pursuapt to Minnesota
Statutes to carry out economic and industrial devel6pment and redevelopn1ent cOnSis~ent with policies
established by the Couticil.' Its' board is comprised of members of the City Council. The EDA
activities are blended and reported in separate debt setviceand/capitalprojectsAunds. Separate
financial statements are not issue~ for this component unit. '
,The City provides its residents and bUSInesses with liJull range of municipal services consisting of
police. fire, public.'.works, parks and' general" admirii~trative services. The City also operates five
enterprises: a water utility, sew~r utility, recycling utility, storm~water management utility, arid an .off.,.
sale liquor operation withtwo staTe locations during 2003: ./
FINANCIAL AND MANAGEMENT EMPHA.SIS
Governance
The City Council, in its leaders,hiprole, has effectively eStablished a focus for Citygovernme~tin
Sfiorewood. The Council has adopted/a Statement of PurpOSy a,nd has established Qverall- goals and.
expectations forthe City. It has identified issues facing the City and stated priorities so that the staff/
can efficiently and effec;tivelyalloca,te timeand.resources.
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The City Council's calendar consists of thTee phases. The first phase isPlilIming:.it includes review
of the previous year' s work plan and the <?ity's Comprehensive Plan. It also includes identifi~ation of
goa!s and priorities for the nexttwelv~months.
The second phase is that of Programming and Capital Finance Planning: each year. the .. five-year
Capitalln1proveinent Programjs reviewed and updated based upon priorities established in the fIrst
phase. Any changes to the Comprehensive Plan are made based upon the Phase Orie decisionS;
The third phase is Budgeting: the operating budget is dev~lopedbased~n decisions made. in the first
two phases. The,bud. get format provides infoimatioIl and analytical data to the City Council and eJther
readers. It defines departmehtal missions and s~ts objectives for thebudgeryear. . .
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Public Improvements and Progra11Js ...., ..
The City Council established a Land.ConservatieJl1;andEnvironment Committee (LCEC) for a 3-year~-
period in. 1999, to study and to make recomme~dations regarding ongoing'larid conservation and
environmental polici~~ for .the..City. The LCEC finaL report was completed ar,td reeorinnendations
accepted by the City Council in 2003. .
The Park Connhission continued its work on a Park M~ster Plan. Tpe Park MasterPlan process is a
detailed review ~nd analysi~ oftheamerlities and attribv~es of each of the Shorewoodcity parks. It is
.now included in its entirety in the'Clty's Comprehensive Plan and sets the basis for/mqre effective
'capital improvement planning.
Meeting Public Safety Service.Needs
Shorewood is committed to working cooperatively with other Lake Mitmetorika area cities to
carefully consider methods to efficiently deliver public services. The City has various contractyal
arrangements with other governmental jurisdictions and..with private entities for providing many\of
these services; The City isalseJiIlvolved in cooperative employee training, disaster preparedness and
other areas. of mutual concern as an active.participantin the LilkeMinnetonka-area. .
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The City ofSh6fewood, along with the cities of Excelsior,/D~ephaven, Greenwood and T()nK~.Bay,'
has b~en a member of the Excelsior Fire District since 2aOO. The Excelsior Fire District is a joint
powers organization and replaces the previous contractual arrangement with the City of ExcelSior Fire
Department. A combined policeapd fire public safety building that will serve the Lake Minnetonka
Area cities was completed in late 2003. A fire station to serve the east .side ohhe Excelsior Fire
District is also planned to be completed in 2004.
The City has been a member city of the South Lake Minnetonka PoligeDepartmeIlt (SLMPD) sInce
its inception in)973. Tbe othetmembers 9f this joint powers organization are the cities pf Exselsior,
Greenwood.. and Tonka :Bay. The newpoIlce station was completed at the end of 2003.
FINANCIALINFORMATlON
BUDGETING CONTROLS
The annual budget serves as t~e foundation of the City of Shorewood' s fiIlancia.1 planriing and control.
The City maintains budgetary controls to ensure complIance with legal provisions ~mb6died in the
annual appropriated budget approved by the City Cou.ncil. The annual apptopriated budget also
!inc1udes !he general fund. activities. The legal level of budgetary control'.is estab.lished....at the
., department level; but management.. control is exercised at the liIle item level. The City continues
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meeting its responsibility for sound financial management,~s 'demonstrated by the stateIllents and
schedules included in the financial section of this repeJrt
GENERAL GOVERNMENT FUNCtIONS _
The following \ schedule presents a summary of general Jund.. revenues for .the fiscal year ended_
December 31, 2003, and the.amountof increases or decreases in relation to the prior y~ar's revenues.
Revenues and Other Financm1! Sources
GeneraIProperty Taxes
Litenses and Petmits
Intergoyernmental
Charges for Services'
Fines and Forfeitures
Interest on Investments
Miscellaneous
Operating Transfers In
Total
Amollnt
$ 3,071;853
334',424
, 65,782
48,689
88,949
55,649
33,700
30.000
$ 3.729,046
Percent of Total
82.38%
8.97
1.76
1.31
2.39
1.49
.90
-.80
100,00%
Change
from 2002
$' 413,190
105,19Q
(106,001)
2,610
(683)
(59,183)
(286,210)
(25.000)
$ 43~913
OveraUrevenues increaseq by $43,913 from 2002 to 2003. The largest increase in revenue was
property tax revenues; which inCluded special. levies for Shorewood's portion of the debt serVice due
for the new public safety facilities.. Int~rest reven\le decreased in 2003 due to a gene~al reduction in
market interest rates and market value adjustments that were made to the City's investments in
accordance with GASH. 31. In,ergovemmental . revenue decreased substantially from 2002 due to
legislative changes that~educed or. eHminatedLocal Government Aid (L9A) and. :M~ket Value
-Homestead Adjustment (MVRA) payments to Minnesota Cities. There was a decreaseiJl
miscellaneous revenU~wheIl compared to 200~~ due to a large pnor yeardonatiori of landto the City.
The following. table presents a SUmmary of general fund expenditures feJt the fiscal year eJ:'lded
December 31, 2003, and the amount of increase~ orqecreases telative to the prior yearYs e'fpenditutes.
Expenditures and Other Uses
General Government
Public Safety
PublicW orks
Parks and Recreation
D~bt Service
Capital Outlay:
Op~rating Transfers Out:
Total
Amount
$ 1,038,909
999,049
420,608
164,540
37,544
314,902
365.000
$ 3.340.552
Percent of Total
31.10%
29.91
12.59
4.93,
( 1.11
9.43
10.93
100.00%
,
Change .
from 2002 .
$ 36,98~f
(9,743)
(7/)22)
4,425
o
10,681
(244.100)
$ (209.671)
Overall expenditures and other uses Were lowerin:-2003 froQl 2002, primarily due t() a reduced level
of transfers out to Capital Improvement and Equipmen~ funds. Public Safety expenditures feJf'police
and fire servicesincreasedin 2003 due t() increasedcontributiom; for the City.' s share of the capital
outlay debt service requirements to fund the new police and fire public safety facility" Spending in
the general government category increased by an inflationary amount of about 3.5%~The City
~ouncil cOBtinu~ its plan to accumulate resources for future capital equipment and imptbvymen~
projects; amounts were transferred to various capital project funds. Budgeted transfers for capital
improvement purposes decreased during 2003 from $609,100 to $365,000. .
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GENERALPUNlJBALANC'E ,.' .
T\1e geIJeral fund t>aJartce at ~ecetnber 31, 2Q03, was$2,546,472.Tqe .fund balan.ce increjlsed/hy
$388,4941 during 2qD3. The fund bal~ce is designated for working capital reql1ir~Ill~nts thrq:ugh the
first six mo~ths ofthe y,e~. It i~~the policy of the City IS to maintain. a f~i1d bal~~ceat50% to 60%~f
the current budget. It is important for the City to maintainadequatefund bal~ce as a reserve t() meet) .
expenditures in the general fun,d until property ta~ ~roceeds are received.in July: \The City Council
will continue to manage the fund balance at thisJevel. '
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ENTeRPRISE OPfiRATION
The City's enterprise fund act~vitiesfor 2003 are surpmarized as follows:
Operating
.Exuenses'
$373,802
756,381 \
'~1 16,561
55:147
446j~),<8
Operating:~)
lncome(LossJ
,i$ 74,065/
98,808
(18,367)
2~054
22,869
:/ \
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Operating
Revenues
$447,867
855,189)
. 98,194
57,~61
469,847
Water:,
Sewer:
Recycling:
Storiliwater)v,lan~gement:.
Liquor: '
Genyrally accepted accoup.,ing princif>l~s, require the depreciation of contrib,uted as~ets, which r~sults
in net losses ill spmecases. It is iinportantAo reyiew the' opt;rationsan9ually. to ensure rates .. are;
sufficient t9Jcover costs. The City: Council reviewed and authorized utility raie changes for both 2003
and 20Q4. " i...' " )' "; " " .)
( . /- , '
The Liquor fund.experienced a small net operjltingprofit'in 2003. The Shorewooo Village Plazastort(
was completely reJIlOdeled in conjunction with construction ofa new anchor tellan~ at that ~ll, aQ-dit
was believed this ,may have impacted sales. The Liquor Committee and City management cohtinueto
'.. ) ',f',. ," '" _ ,,- _ __ - _ ',- '- _ -', /' \
explore ways to increjlse future profit i margins, including a proposeq ~ke.ting study planned for
2004,. \ ' ,,' . Ii
DEBTADMINISTRATION '., . ~." ,. .). /, .
As of Vecember 31, 2oo3'itht(.City's debfloutstandipg totaled $14,904,233. Of this total, $12,365,000
is! lease revenue bonds issued in 2002: and 2003 iby the EVA to finanCe the.construction of Publi,c
Safety (police. and fire) buildings.G~neral ?bligation spedal assessment bonds for tlieconstructjqn of
other utility iinprovements total $20,000, and theCj.tyhjls a capitaUejlsetQ: finance, its portion of
constru~tion of the Southshor~ ~eni6r Community Center in the amount .of ,$15cJ,2p3: ,.Total
out~tanding general obligationwater revenue bonds at year-end are$~,360,000.Theproceeds'f~om
these bonds financed w~ters~stem extensions and imp~ovements and will be ~epaid fronr speciaL
assessment~ and Water fund reVenues. .
BOND RATING UPGRADt, .,.,.. ,'.. .' '... I .
The City is very pleased to nave received a bond rating upgrade durlng2OQ3 ~? ~AA3'fr~In;'Al'by
Mqody's li1vestor Service. Moody's cited the following reasons for thisrapng:('~heCily's91atU(e
economy with, .afflvent ,wealth leyels; healthy, ,tax ba~e growth; 'strong fimmcial operati,ons
,characterized by healthy reserve levels; average debt,burden; and limited capital nl;eds.
CASH MANAGEMENT " . ... .. '
T~e City of Sh()r~wooo subscribes to thenpo~lec:l, cash n\ concept of investing w~ieh means that \aJI
funds w~th cash balances particjpate in an investmehtp()pl., this pemlltssoIlle funds to be overdrawn
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and o!herfundsto show p~sitivecash balances, with the City overall maintaining a P9sitive ca~h
balance.. The .pooled cashcopcept 'provides for investing of ~eater aplounts)of money at more
favorable rates and interest earnings arethen allocated to the participating funds, Duririg2oo3, the
Gity.of ShorewpOd earrled $219,840tn interest revenue.
RISK MANAGEMENT
The City'of Shotewood's general property and liability coverage ;mdits wo~kers' compensation
insurance are. proviged . througl1 . the League of. Minnesota Cities Insur~nce Trust (LMCIT). .. The '.
'LMCIT . insuranc~'.. program is a joint~elf-ins.urance plan designed to . lower and stabilize cities
insurance ratesandtqassure that cities'have. a source of .coverage available.. TheLMCIT. reserves and
rates are reviewed annually .by an actuary to assure that the. program remains financiallY strong. '\
A WARDS AND ACKNOWLEIiGEMENTS .. . \.
The, OovernmentFinance OfUcers AssociatiQn of the United States and Canadl;l (GFOA) awarded a
Certificate of Achievement for ExceHence in. FinanCial Reporting to the CityofShore'Y()od for its
comprehensive, annual financial. report. (CAFR) for the fiscal year ended De~mber 31, 2002: \ This
was the eleventh cqnsecutive year that the g~>vemment has received t~is pJ'estigious aWjlfd.. In ord~r
to be awarded a Certificate ,of Achievement, the government published an e)lsily re~tdableJ and,
efficieytly organized .CAFR. This report' satisfied both GAAP' (generatly accept~d accounting
principles) and applicable legal requirements. Only 259 municipalities (less than 1%), out Qf32,000
muniCipalities nationwide with populations under 10,000, qualified to receive this a'ward from GFOA.
" '\,"'" (
A Certificate of Achievement is valid for a petiodofone yeafonly.We pelieveourcUITeut ~AFR
continues to meet the.Certificate of~chievelI).ent Program's requirements and we are submitting it to
the GFOA to determine its eligibility for another certificate. '
We would like t(}expr~ssour.appredation to I;lll adinirtistrativestaff,finance department staff, and the ( ",
City's. independent \ auditor for theif efticient and' dedicated services. in. preparation qf the CAfR. \
Their assistance and cooperation are so important. Thank you also,ito Sborewood's MaY9f>and entire
City Council fOr their unfailing 'support fQr maintaining the highest standards of professi()])alismin
the management of the City of Shorewood's finances. . .
ReSPectfully submitted,'
.~~
Bonnie Burton
Finance Directorffreasurer
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Shorewood,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~
President
~~~
Executive Director
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Grandview Square
5201 Eden Avenue
Suite 370
Edina, MN 55436
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Shorewood, Minnesota
We have audited the accompanying general purpose [mancial statements of the City of Shorewood, Minnesota, as of and for the
year ended December 31,2003, as listed in the table of contents. These general purpose financial statements are the responsibility
of the City's management. Our responsibility is to express an opinion on t..lJ.ese general purpose [mancial statements based on our
audit.
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 general purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose [mancial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the [mancial
position of the City as of December 31, 2003, and the results of its operations and the cash flows of its proprietary fund type for
the year then ended in conformity with accounting principles generally accepted in the United States of America.
Our audit was performed for the purpose of forming an opinion on the general purpose [mancial statements taken as a whole. The
combining, individual fund and account group financial statements, schedules and statistical information listed in the table of
contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements
of the City. Such information has been subjected to the auditing procedures applied in the audit of the general purpose [mancial
statements and, in our opinion, except for the statistical data section marked "unaudited" on which we express no opinion, is fairly
stated in all material respects in relation to the general purpose financial statements taken as a whole.
April 9, 2004
Minneapolis, Minnesota
1
(JbcLo 2-,'1Jz. ~rn~JLLP
ABDO, EICK & MEYERS, LLP
Certified Public Accountants
952.835.9090 . Fax 952.835.3261
www.aemcpas.com
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CITY OF SHOREWOOD, MINNESOTA
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose [mancial statements and notes to the [mancial statements are intended to provide an overview and broad
perspective of the City's [mancial position and operations. These statements present a summary set of information needed to
control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in financial
planning.
The following general purpose financial statements are presented:
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund
Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
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CITY OF SHOREWOOD , MINNESOTA
COMBINED BALANCE SHEET I
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 2003
(With comparative totals for December 31, 2002) I
Governmental Fund Types
Debt Capital I
General Service Projects
ASSETS AND OTHER DEBITS I
ASSETS
Cash and temporary investments $ 2,557,765 $ 204,722 $ 5,246,500
Receivables
Accrued interest 20,181 628 13,469 I
Delinquent taxes 51,946
Accounts 17,881 387,137
Special assessments 21,456 18,859 I
Lease 12,365,000
Due from other funds 50,000
Inventories, at cost
Prepaid items I
Bond discount, net
Fixed assets, net
OTHER DEBITS I
Amount available for debt retirement
Amounts to be provided for debt retirement
TOTAL ASSETS AND OTHER DEBITS $ 2,669,229 $ 12,589,209 $ 5,697,106 I
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable $ 50,102 $ $ 1,084,627
Due to other funds 50,000 I
Due to other governments 4,074
Accrued interest payable
Salaries and compensated absences payable 12,321 I
Escrow deposits payable
Deferred revenue 56,260 12,383,859
General obligation bonds payable I
General obligation revenue bonds payable
Capital lease payable
TOTAL LIABILITIES 122,757 12,383,859 1,134,627
EQUITY AND OTHER CREDITS I
Investment in general fixed assets
Contributed capital
Retained earnings I
Unreserved
Fund balance
Reserved 205,350 I
Unreserved
Designated 2,546,4 72 4,562,479
Undesignated I
TOTAL EQUITY AND OTHER CREDITS 2,546,472 205,350 4,562,479
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS $ 2,669,229 $ 12,589,209 $ 5,697,106
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See Notes to Financial Statements.
-3- I
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31,2003
(With comparative totals for the year ended December 31, 2002) I
Debt Capital I
General Service Proj ects
REVENUE I
Taxes $ 3,071,853 $ $
Licenses and permits 334,424
Intergovernmental 65,782 1,881,702 I
Charges for services 48,689
Fines and forfeitures 88,949
Special assessments 10,217 I
Interest on investments 55,649 4,152 86,530
Miscellaneous 33,700 447,704 69,763
TOTAL REVENUE 3,699,046 462,073 2,037,995 I
EXPENDITURES
Current
General government 1,038,909 I
Public safety 999,049
Public works 420,608
Culture and recreation 164,540 I
Capital outlay 314,902 10,256,619
Debt service
Principal 26,402 20,000 I
Interest and service charges 11,142 449,617
TOTAL EXPENDITURES 2,975,552 469,617 10,256,619
EXCESS (DEFICIENCY) OF I
REVENUE OVER EXPENDITURES 723,494 (7,544) (8,218,624)
OTHER FINANCING SOURCES (USES) I
Operating transfers in 30,000 26,107 335,000
Proceeds from sale of bonds 4,093 2,364,285
Operating transfers out (365,000) (26,107) I
TOTAL OTHER FINANCING SOURCES (USES) (335,000) 4,093 2,699,285
EXCESS (DEFICIENCY) OF I
REVENUE AND OTHER FINANCING
SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES 388,494 (3,451) (5,519,339) I
FUND BALANCE, JANUARY 1 2,157,978 208,801 10,081,818
RESIDUAL EQUITY TRANSFER IN I
RESIDUAL EQUITY TRANSFER OUT
FUND BALANCE, DECEMBER 31 $ 2,546,472 $ 205,350 $ 4,562,479
See Notes to Financial Statements. I
-5- I
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Exhibit 2
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Totals
I (Memorandum Only)
2003 2002
I $ 3,071,853 $ 2,658,663
334,424 229,234
I 1,947,484 171,783
48,689 46,079
88,949 89,632
I 10,217 9,235
146,331 283,024
551,167 375,510
I 6,199,114 3,863,160
I 1,038,909 1,001,921
999,049 1,008,792
420,608 428,530
I 164,540 160,115
10,571,521 3,433,022
I 46,402 139,833
460,759 18,844
13,701,788 6,191,057
I (7,502,674) (2,327,897)
I 391,107 629,100
2,368,378 9,950,000
I (391,107) (609,100)
2,368,378 9,970,000
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I (5,134,296) 7,642,103
12,448,597 4,806,494
I 8,342
(8,342)
$ 7,314,301 $ 12,448,597
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CITY OF SHOREWOOD, MINNESOTA Exhibit 3
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31,2003 I
Variance -
Favorable I
Budget Actual (Unfavorable)
REVENUE
Taxes $ 3,l56,847 $ 3,071,853 $ (84,994) I
Licenses and permits 242,050 334,424 92,374
Intergovennnental 70,175 65,782 (4,393)
Charges for services 35,000 48,689 13,689 I
Fines and forfeitures 60,000 88,949 28,949
Interest on investments 94,800 55,649 (39,151)
Miscellaneous 30,200 33,700 3,500 I
TOTAL REVENUE 3,689,072 3,699,046 9,974
EXPENDITURES I
Current
General govennnent 1,187,461 1,038,909 148,552
Public safety 1,021,875 999,049 22,826 I
Public works 548,903 420,608 128,295
Culture and recreation 199,583 164,540 35,043
Capital outlay 330,050 314,902 15,148 I
Debt service 37,550 37,544 6
TOTAL EXPENDITURES 3,325,422 2,975,552 349,870 I
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENDITURES 363,650 723,494 359,844 I
OTHER FINANCING SOURCES (USES)
Operating transfers in 30,000 30,000 I
Operating transfers out (393,650) (365,000) 28,650
TOTAL OTHER FINANCING SOURCES (USES) (363,650) (335,000) 28,650 I
EXCESS (DEFICIENCY) OF
REVENUE AND OTHER FINANCING I
SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES $ 388,494 $ 388,494
FUND BALANCE, JANUARY 1 2,157,978 I
FUND BALANCE, DECEMBER 31 $ 2,546,472 I
See Notes to Financial Statements. I
-7- I
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CITY OF SHOREWOOD, MINNESOTA Exhibit 4
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31,2003
OPERATING REVENUE
Sales
Less cost of sales
Enterprise
$ 1,772,748
(1,302,901)
469,847
1,390,909
67,542
1,928,298
360,081
23,028
28,857
430,312
23,260
140,286
1,378
19,995
13,135
81,243
459,949
112,723
9,752
44,870
1,748,869
179,429
23,352
73,509
20,835
66,130
(110,315)
73,511
252,940
30,000
(30,000)
252,940
2,849,645
$ 3,102,585
GROSS PROFIT
Charges for services
Permits and connection fees
TOTAL OPERATING REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Disposal charges
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUE (EXPENSE)
Special assessments
Interest on investments
Antenna lease
Other income
Interest expense
TOTAL NONOPERATING REVENUE (EXPENSE)
INCOME BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS IN
OPERATING TRANSFERS OUT
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
See Notes to Financial Statements.
-8-
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Exhibit 5
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Enterprise I
$ 179,429 I
86,965 I
430,312
2,194
(41,168) I
2,821
4,911
6,634 I
8,388
(3,424) I
2,188
679,250 I
30,000
30,000 I
(8,877)
(30,000)
(30,000) I
(8,877)
799,026 I
(185,000)
(97,435) I
(222,228)
. 69,863
364,226 I
68,017
1,102,616 I
4,992,239
$ 6,094,855 I
$ 233,100 I
$ 30,000
$ 15,974 I
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31,2003
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Other income related to operations
Depreciation
Amortization
(Increase) decrease in assets:
Accounts receivable
Special assessments receivable
Inventories
Prepaid items
Increase (decrease) in liabilities:
Accounts payable
Due to other governments
Salaries and compensated absences payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Decrease in due from other funds
Operating transfers in
Interest paid on interfund loan
Decrease in due to other funds
Operating transfers out
NET CASH USED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Issuance of bonds, net of discount
Principal paid on revenue bonds
Interest paid on revenue bonds
Acquisition of fixed assets
Special assessments collected
NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired from developer
Fixed assets acquired from landlord
Discount on bonds issued
See Notes to Financial Statements.
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Note 1:
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Shorewood operates under the "Optional Plan A" form of government as defined in the State of
Minnesota statutes. Under this plan, the government of the City is directed by a Council composed of an elected
Mayor and four elected Council members. The Council exercises legislative authority and determines all
matters of policy. The Council appoints personnel responsible for the proper administration of all affairs
relating to the City. The City has considered all potential units for which it is fmancially 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 fmancial statements to be misleading or incomplete. The Governmental Accounting
Standards Board (GASB) has set forth criteria to be considered in determining fmancial accountability. These
criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the
primary government to impose its will on that organization or (2) the potential for the organization to provide
specific benefits to, or impose specific fmancial burdens on the primary government. Blended component units,
although legally separate entities are, in substance, part of the City's operations and so data from these units are
combined with data of the primary government. The City has the following component unit.
Blended Component Units
The Economic Development Authority (EDA) of the City was created pursuant to Minnesota statutes 469.090
through 469.108 to carry out economic and industrial development and redevelopment consistent with policies
established by the Council. It is comprised of the members of the City Council and has a December 31 year end.
The EDA activities are blended and reported in the debt service and capital projects funds. Separate financial
statements are not issued for this component unit.
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates
funds according to their intended purpose and is used to aid management in demonstrating compliance with
fmance-related legal and contractual provisions. The minimum nmnber of funds are maintained consistent with
legal and managerial requirements. Account groups are a reporting device to account for certain assets and
liabilities of the governmental funds not recorded directly in those funds.
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 requrrements, 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.
Deferred 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 deferred revenue.
On the modified accrual basis, receivables that will not be collected within the available period have also been
reported as deferred revenue.
-10-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FrnANClAL STATEMENTS
DECEMBER 31, 2003
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The City has the following fund types and account groups:
Governmentalfunds are used to account for the City's general government activities. Governmental fund types
use the flow of current fmancial resources measurement focus and the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when
they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to pay liabilities of the current
period. The City considers all revenues available if they are collected within 60 days after year end.
Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general
long-term debt which is recognized when due, and certain compensated absences and claims and judgments
which are recognized when the obligations are expected to be liquidated with expendable available financial
resources.
Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other
receipts and taxes become measurable and available when cash is received by the government and are
recognized as revenue at that time.
The preparation of general purpose financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual
criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have
been incurred and all other grant requirements have been met.
Governmental funds include the following fund types:
The general fUnd is the City's primary operating fund. It accounts for all fmancial resources of the City, except
those required to be accounted for in another fund.
The debt service fUnds account for the servicing of general long-term debt not being financed by proprietary
funds.
The capital projects fUnds account for the acquisition of fixed assets or construction of major capital projects
not being financed by proprietary funds.
Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual
basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred. In accordance with the provisions of the GASB Statement No. 20, Accounting and
Financial Reportingfor Proprietary Funds and other Governmental Entities that use Proprietary Fund
Account, the City applies all applicable GASB pronouncements plus all Financial Accounting Standards Board
(FASB) Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research
Bulletins issued on or before November 30, 1989, except for those that conflict with or contradict GASB
pronouncements. The City has elected not to apply F ASB Statements and Interpretations issued after November
30, 1989. Proprietary funds include the following fund type:
Enterprise funds are used to account for those operations that are financed and operated in a manner similar to
private business or where the Council has decided that the determination of revenues earned, costs incurred
and/or net income is necessary for management accountability.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of
others.
The agency fund is custodial in nature and does not present results of operations or have a measurement focus.
Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for
escrow deposits of developers and builders in conjunction with the anticipated cost of improvements that will be
necessary as a result of the development.
Account groups. The general fzxed assets account group is used to account for fixed assets not accounted for in
proprietary funds. The general long-term debt account group is used to account for general long-term debt and
certain other liabilities that are not specific liabilities of proprietary funds.
C. Assets, Liabilities and Equity
Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by
each of the funds.
Minnesota statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, repurchase agreements and shares of investment companies registered under the Federal Investment
Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its
agencies.
Investments for the City are valued at fair value. The Minnesota Municipal Money Market Fund investment
pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the
same as the fair value of the pool shares.
Property Taxes
The Council annually adopts a tax levy in December and certifies it to the County for collection in the following
year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable
lien on taxable property within the City on January 1 and are payable by the property owners in two installments.
The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July
and December each year.
Taxes payable on homestead property, as defined by Minnesota statutes, were partially reduced by a market
value credit aid. The credit is paid by the State of Minnesota in lieu of taxes levied against the homestead
property. However, in 2003, the City received an aid reduction which eliminated their market value credit aid
and local government aid.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a
deferred revenue liability for delinquent taxes not received within 60 days after year end.
-12-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
I
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Accounts Receivable
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Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise
fund receivables are also included for services provided in 2003. 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.
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Special Assessments
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Special assessments represent the fmancing for public improvements paid for by benefiting property owners.
These assessments are recorded as receivables upon certification to the County. Special assessments in
governmental funds are recognized as revenue when they are received in cash or within 60 days after year end.
All special assessments receivable are offset by a deferred revenue liability in governmental funds. Enterprise
fund special assessments are recorded as contributed capital in the year of certification.
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Interfund Receivables and Payables
Transactions between funds that are representative oflendinglborrowing arrangements outstanding at the end of I
the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion ofinterfund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding I
balances between funds are reported as "due to/from other funds."
Inventories and Prepaid Items/Deferred Charges
The inventories are stated at average cost, which approximates market using the first-in, first-out (FIFO)
method.
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Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items or deferred charges.
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Fixed Assets
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Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group
at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their
estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated.
Interest incurred during construction is not capitalized on general fixed assets.
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Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only to the City) are not capitalized.
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The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'
lives are not included in the general fixed assets group or capitalized in the proprietary funds.
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Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and
equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date
of donation.
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Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are
constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the
capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FfNANCIAL STATEMENTS
DECEMBER 31,2003
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line method
over the following estimated useful lives:
Assets
Lives
m
Years
Furniture and equipment
Collection and distribution system
5 - 10
40
Compensated Absences
Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available [mancial
resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts
of vested or accumulated vacation leave that are not expected to be liquidated with expendable available
[mancial resources are reported in the general long-term debt account group. At December 31, 2003 the amount
recorded in general long-term debt was $79,635. No expenditure is reported for these amounts. Proprietary
fund types record the liability as the benefits accrue to employees. This amount was $14,515 at year-end.
Long-term Obligations
The City reports long-term debt of governmental funds at face value in the general long-term debt account
group. Certain other governmental fund obligations not expected to be financed with current available [mancial
resources are also reported in the general long-term debt account group. Long-term debt and other obligations
financed by proprietary funds are reported as liabilities in the appropriate funds.
For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the
current period. Bond proceeds are reported as an other financing source net of the applicable premium or
discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt
service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are
deferred and amortized over the life of the bonds using the straight line method.
Fund Equity
Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific
purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations offund
balance represent tentative management plans that are subject to change. The proprietary fund's contributed
capital represents equity acquired through capital grants, capital contributions from developers and customers
(prior to January 1, 2001) or other funds.
Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned as "memorandum only" because they
do not represent consolidated [mancial information and are presented only to facilitate [mancial analysis. The
columns do not present information that reflects financial position, results of operations or cash flows in
accordance with accounting principles generally accepted in the United States of America. Interfund
eliminations have not been made in the aggregation of this data.
-14-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Comparative Data/Reclassifications
Comparative total data for the prior year have been presented in the selected sections of the accompanying
[mancial statements in order to provide an understanding of changes in the City's [mancial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.
Budgetary Information
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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 I
encumbrance accounting.
In August of each year, all departments of the City submit requests for appropriations to the City Administrator
so that a budget may be prepared. Before September 15th, the proposed budget is presented to the Council for
review. The Council holds public hearings and a final budget is prepared and adopted in early December.
The appropriated budget is prepared by fund, function and department. The City's department heads, with the
approval of the City Administrator, may make transfers of appropriations within a department. Transfers of
appropriations between departments require the approval of the Council. The legal level of budgetary control is
the department level. Budgeted amounts are as originally adopted.
B.
Excess of Expenditures over Appropriations
For the year ended December 31, 2003, expenditures exceeded appropriations in the following departments
within the general fund:
Department
Actual
Budget
Excess
Planning and zoning
Fire protection
Sanitation and waste removal
$ 145,076 $
250,997
4,450
153,028 $
251,912
6,526
7,952
915
2,076
These over expenditures were funded with revenue in excess of budget and under expenditures in other
departments.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments
Cash balances of the City's funds are combined (pooled) and invested to the extent available in various
investments authorized by Minnesota statutes. Each fund's portion of this pool (or pools) is displayed on the
fmancial statements as "cash and temporary investments. II For purposes of identifying the risk of investing
public funds, the balances are categorized as follows:
Deposits
In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those
depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market
value of collateral pledged must equa111 0 percent of the deposits not covered by insurance or bonds (140
percent in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage notes and
certain other state or local government obligations. Minnesota statutes require that securities pledged as
collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral.
At year end, the City's carrying amount of deposits was $886,956 and the bank balance was $1,979,984. The
entire bank balance was covered by federal depository insurance.
Investments
Investments are categorized into these three categories of credit risk:
1. Insured or registered, or securities held by the City or its agent in the City's name.
2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's
name.
3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent
but not in the City's name.
The City also invests in various money market accounts. The investment in the money market accounts is not
subject to the categories of credit risk described above. The value of the investment in money markets is equal
to the value of the pool shares.
At year end, the City's investment balances were as follows:
1
Category
2
Fair
Value
3
U.S. Government Securities
- $
- $ 12,683,282
$ 12.683.282 $
Investments not subject to categorization:
Minnesota Municipal Money Market fund
Broker money market accounts
557,428
165.176
Total investments
$ 13.405.886
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Note 3:
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Cash on Hand
Petty cash in the possession of the City totals $1,300.
Cash and Investments Summary
A reconciliation of cash and investments as shown on the Combined Balance Sheet for the City follows:
Cash on hand
Carrying amount of deposits
Carrying amount of investments
$ 1,300
886,956
13.405.886
Total cash and temporary investments
$ 14.294.142
B.
Lease Receivable
On September 1,2002, the EDA entered into a capital lease agreement as lessor with the Excelsior Fire District
and the South Lake Minnetonka Police Department for use of a building that was completed in 2003. The City
is a member of both joint powers agreements. The interest rate ranges from 3.00 to 5.00 percent and the
maturity date is February 1, 2023. The future minimum lease payments are as follows:
Year Ending
December 31.
Amount
2004
2005
2006
2007
2008
Thereafter
$ 624,649
943,383
1,030,691
1,024,550
1,026,240
15.239.924
Total
Less amount representing interest
19,889,437
(7.524.437)
Principal
$ 12.365.000
C.
Fixed Assets
A summary of changes in general fixed assets for the year ended December 31, 2003 is as follows:
Balance Balance
Beginning End
of Year Additions Deletions of Year
Land $ 741,826 $ - $ - $ 741,826
Buildings and structures 1,731,011 12,093 1,743,104
Improvements other than buildings 1,391,881 1,391,881
Furniture and equipment 1.559.797 176.817 202.623 1.533.991
Total $ 5.424.515 $ 188.910 $ 202.623 $ 5.410.802
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
The following is a summary of enterprise fund fixed assets at December 31, 2003:
Stormwater
Water Sewer Management Liquor Total
Furniture and equipment $ 25,113 $ 49,594 $ - $ 316,182 $ 390,889
Collection and
distribution system 7.085,423 7,917.621 1.197.705 16,200,749
Total 7,110,536 7,967,215 1,197,705 316,182 16,591,638
Less accumulated
depreciation (1.915,639) (5,513,954) (41,547 ) (76.389) (7,547,529)
Net fixed assets $ 5.194.897 $ 2.453.261 $ 1.156.158 $ 239.793 $ 9.044.109
D. Due TolFrom Other Funds
The composition of interfund balances as of December 31, 2003 is as follows:
Receivable Fund
Pavable Fund
Amount
Street Reconstruction
Sewer
MSA Construction
Stormwater Management Utility
$ 50,000
150,000
Total
$ 200.000
E. Deferred Revenue
Deferred revenue at December 31, 2003 is comprised of the following:
Debt
General Service Enterprise Total
Delinquent taxes $ 34,805 $ - $ - $ 34,805
Special assessments
Deferred 21,455 18,859 40,314
Lease receivable 12,365.000 4 1.556 12,406,556
Total $ 56.260 $ 12.383.859 $ 41.556 $ 12.481.675
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
F. Long-term Debt
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for both general government
and proprietary activities. The bonds are reported in the proprietary funds if they are expected to be paid from
proprietary activities.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. General
obligation bonds currently outstanding are as follows:
General Long-term Debt
General Obligation Improvement Bonds
The following bonds were issued to fmance various improvements and will be repaid primarily from special
assessments levied on the properties benefiting from the improvements. Some issues, however, are partly
fmanced by ad valorem tax levies. Each year the combined assessment and tax levy equals 105 percent of the
amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax or assessment
payments. All special assessment debt is backed by the full faith and credit of the City.
Authorized
and
Issued
Balance
at
Year End
Interest
Rate
Issue
Date
Maturity
Date
G.O. Improvement
Bonds of 1993
$ 325,000 4.15-4.80%
02-01-04 $
12-01-93
20.000
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Lease Revenue Bonds I
The following bonds were issued by the EDA to fmance construction of three public safety facilities. The bonds
will be repaid from lease payments from the Excelsior Fire District and the South Lake Minnetonka Police I
Department. The City is a member of both entities.
Public Safety Fire Facility,
Series 2002A $ 3,865,000 3.00-5.50% 09-01-02 02-01-23 $ 3,865,000
Public Safety Police Facility,
Series 2002B 4,025;000 3.00-5.50 09-01-02 02-01-23 4,025,000
Public Safety Fire Facility,
Series 2002C 2,060,000 3.00-5.50 09-01-02 02-01-23 2,060,000
Public Safety Fire Facility,
Series 2003A 1,195,000 2.00-5.10 04-15-03 02-01-23 1,195,000
Public Safety Police Facility,
Series 2003B 1,220,000 2.00-5.10 04-15-03 02-01-23 1,220.000
Total Lease Revenue Bonds $ 12.365.000
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FmANC~ STATEMENTS
DECEMBER 31,2003
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Other General Long-Term Debt
Capital Lease Payable
During 1996, the City entered into a lease, with option to purchase, agreement as lessee for fmancing the South
Shore Senior Center project. Title remains with the City so long as they are not in default ofterms in the lease
agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been
recorded at the present value of the future minimum lease payments as of the date of its inception.
Authorized
and
Issued
Interest
Rate
Issue
Date
Maturity
Date
Balance
at
Year End
$ 311,000
6.22%
05-30-96
08-01-08 $
159.233
Sick Leave and Severance Payable
This liability represents vested benefits earned by employees through the end of the year, which will be paid at
retirement in future periods.
Total sick leave/severance payable
$
79.635
Enterprise Fund Debt
General Obligation Revenue Bonds
The following bonds were issued to fund improvements in the Water enterprise fund. They will be repaid
through user charges and tax levies.
G.O. Water Revenue
Bonds of 1995 $ 1,920,000 4.45-5.50% 11-01-95 02-01-11 $ 1,025,000
G.O. Water Revenue
Bonds of 1996 860,000 4.45-5.40 11-01-96 02-01-12 520,000
G.O. Refunding
Bonds of 2003 815,000 1.50-3.00 08-01-03 02-01-11 815,000
Total General Obligation Revenue Bonds $ 2.360.000
Crossover Refunding, On August 1, 2003 the City issued $815,000 of general obligation bonds with a net
interest rate of 2.42 percent for a crossover refunding of the water revenue bonds of 1995 with a net interest rate
of 5.26 percent. The proceeds of the new bonds were deposited with an escrow agent and were used to purchase
government securities. The escrow will provide for payment on the new bonds until the crossover date of
February 1, 2005 when the remaining escrow will be used to pay the remaining old bonds. The old bonds are not
considered defeased until the crossover date. As a result of the transaction the City will save $30,797 in debt
service payments and obtain an economic gain (the present value of the difference between to old and the new
debt service) of$24,965.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Note 3:
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Changes in General Long-term Liabilities. During the year ended December 31, 2003, the following changes
occurred in liabilities reported in the general long-term debt account group:
Balance Balance
January 1, December 31,
2003 Additions Reductions 2003
G.O. Improvement Bonds $ 40,000 $ - $ 20,000 $ 20,000
Lease Revenue Bonds 9,950,000 2,415,000 12,365,000
Capital Lease payable 185,635 26,402 159,233
Sick leave/severance payable 68.034 11. 601 79.635
Total $ 10.243.669 $ 2.426.601 $ 46.402 $ 12.623.868
The annual service requirements to maturity for all bonds and leases outstanding at December 31,2003 are as
follows:
G.O. Capital Lease G.O.
Year Ending Improvement Lease Revenue Revenue
December 31, Bonds Payable Bonds Bonds Total
2004 $ 20,480 $ 37,544 $ 624,649 $ 282,420 $ 965,093
2005 37,544 943,383 263,574 1,244,501
2006 37,544 1,030,691 408,483 1,476,718
2007 37,544 1,024,550 391,723 1,453,817
2008 37,544 1,026,240 369,585 1,433,369
Thereafter 15,239.924 1.077,270 16.317.194
Total 20,480 187,720 19,889,437 2,793,055 22,890,692
Less interest (480 ) (28.487) <7.524.437) (433.055 ) (7 .986.459)
Principal $ 20.000 $ 159.233 $ 12.365.000 $ 2.360.000 $14.904.233
Amount Available for Debt Retirement. Available fund balance in the debt service funds for repayment of
long-term debt totaled $205,350 at year end.
Amount to be Provided for Debt Retirement. This represents future revenue to be generated for debt payments
and sick leave/severance benefIts payable, generally including interest earnings, tax increments, scheduled tax
levies and deferred (future) special assessment levies.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
G. Fund Equity Reservations and Designations
The components of fund equity are described in Note 1. Certain reservations and designations have been made
in the following funds:
Fund
Fund Balance - Reserved
Debt service
1993 Improvement and Refunding
Waterford III Tax Increment
2002 Public Safety Building
2003 Public Safety Building
Total reserved
Fund Balance - Unreserved - Designated
General
Capital projects
Public Facilities/Office Equipment
Park Capital Improvement
Equipment Replacement
Street Reconstruction
MSA Construction
Service Community Center
EDA Project
Total unreserved - designated
H. Contributed Capital
The changes in the City's contributed capital accounted for its enterprise funds in 2003 are as follows:
Purpose
Amount
Debt service on bonds issued $ 108,925
Debt service on bonds issued 10,137
Debt service on bonds issued 82, 183
Debt service on bonds issued 4,105
$ 205.350
Working capital $ 2,546,472
Capital improvements 105,193
Capital improvements 182,595
Equipment 321,638
Streets 1,863,704
Street construction 417,065
Capital improvements 35,546
Public safety facility construction 1,636,738
$ 7.108.951
Stormwater
Sources Water Sewer Management Liquor Total
Balance, January 1,2003 $ 4,924,058 $ 4,657,264 $ 618,257 $ - $ 10,199,579
Additions 233,100 30,000 263,100
Balance, December 31, 2003 $ 5.157.158 $ 4.657.264 $ 618.257 $ 30.000 $ 10.462.679
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
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Note 4:
DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
A. Plan Description
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All full-time and certain part-time employees of the City are covered by defIned benefIt plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established
and administered in accordance with Minnesota statutes, chapters 353 and 356.
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PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan.
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PERA provides retirement benefIts as well as disability benefIts to members, and benefIts to survivors upon
death of eligible members. BenefIts are established by Minnesota statute, and vest after three years of credited
service. The defmed retirement benefits are based on a member's highest average salary for any five successive
years of allowable service, age and years of credit at termination of service.
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Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring I
member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method
2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each
of the fIrst 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each
remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan
members and 1.7 percent for Coordinated Plan members for each year of service. A reduced retirement annuity
is also available to eligible members seeking early retirement.
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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 I
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. I
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active
plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are I
bound by the provisions in effect at the time they last terminated their public service.
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PERA issues a publicly available financial report that includes financial statements and required supplementary
information for PERF and PEPFF. That report may be obtained on the web at mnpera.org, by writing to PERA I
at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-1855 or by calling 651-296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the State legislature. The City makes annual contributions to the pension plans
equal to the amount required by Minnesota statutes. PERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10 percent and 5.10 percent, respectively, of their annual covered salary. The City
is required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan
PERF members, and 5.53 percent for Coordinated Plan PERF members. The City's contributions to the PERF I
for the years ending December 31,2003,2002, and 2001 were $63,294, $60,485 and $53,743, respectively.
The City's contributions were equal to the contractually required contributions for each year as set by Minnesota
statute.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
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 (Department) for the purpose of providing police
protection within the four communities. The agreement creates a coordinating committee, comprised of the
Mayors of each participating community, as the governing body, which meets quarterly. Each year, the
coordinating committee adopts an operating budget, which is approved by all participating cities. The cost of the
budget is divided between the participating cities based upon a five-year average demand for service in each city.
Any budget shortfall is made up frrst from department reserves, with any excess shortfall assessed to each
participating community according to the formula. The current agreement continues through December 31,2003.
The most recent year of audited information is December 31,2002.
The Department had accounts payable, and accrued payroll and compensated absences in the general fund of
$161,024. There was no other current orlong-term debt outstanding as of December 31,2002. The following is
a summary of the Department's balance sheet as of December 31,2002:
SOUTH LAKE MINNETONKA POLICE DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 2002
General Totals
General Fixed (Memorandum Onlv)
Fund Assets 2002 2001
Total assets $ 394.675 $ 482.458 $ 877.133 $ 858.387
Liabilities $ 161,024 $ - $ 161,024 $ 142,903
Fund equity and other credits 233,651 482.458 716,109 715.484
Total liabilities, fund equity
and other credits $ 394.675 $ 482.458 $ 877.133 $ 858.387
The following is a summary of the Department's statement of revenue, expenditures and changes in fund balance
for the general fund for the year ended December 31, 2002:
SOUTH LAKE MINNETONKA POLICE DEPARTMENT
SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2002
(With comparative actual amounts for the year ended December 31,2001)
2002 2001
Variance -
Favorable
Budget Actual (Unfavorable ) Actual
Total revenue $ 1,476,050 $ 1,538,288 $ 62,238 $ 1,399,954
Total expenditures 1.476,050 1.565,166 (89,116) 1.386,686
Excess (deficiency) of revenue
over expenditures $ (26,878 ) $ (26.878 ) 13,268
Fund balance, January 1 260.529 247,261
Fund balance, December 31 $ 233.651 $ 260.529
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I
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
I
Note 5:
JOINT VENTURES - CONTINUED
B. Southshore Senior Community Center
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The City participates in a joint venture with the Cities of Deep haven, Excelsior, Greenwood and Tonka Bay,
which establishes the Southshore Senior Community Center (Senior Center) to provide senior citizens
educational and recreational activities. Upon completion of the facility, the member cities will lease the Senior
Center to the Friends of the Southshore Senior Community Center (Community Center). The term of the lease
shall be 25 years at a rental rate of $1 per year. In addition to the rental rate, the Community Center is required
to pay all operating costs of the Senior Center. The member cities are responsible for a proportionate share of
the building construction. Shorewood fmanced its obligation by issuing a lease purchase note. The remaining
balance on the lease is $159,233 and is reflected in the general long-term debt account group. This will be paid
out of the general fund. In the event operating costs are not covered by revenue, each member is responsible for
their proportionate share of losses. The building is recorded in the general fixed asset account group. The
ownership interest of the City is proportionate to each City's investment in the Senior Center. Separate financial
statements are issued for the Community Center and can be obtained at City offices.
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C. Excelsior Fire District
In August of 2000, the cities of Deep haven, Excelsior, Greenwood, Shorewood and Tonka Bay entered ajoint
powers agreement to provide frre 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 often members and five
alternate members. Each member city appoints two representatives on the board and one alternate. The City is
billed for service based on a formula that determines its share of the total expenditures. Separate fmancia1
statements can be obtained by writing to the Excelsior Fire District, 24100 Smithtown Road, Shorewood,
Minnesota 55331.
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Note 6: OTHER INFORMATION
A.
Risk Management
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The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City
obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a
risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to
LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining
through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance
event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years.
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Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (mNRs).
The City's management is not aware of any incurred but not reported claims.
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Note 6:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2003
OTHER INFORMATION - CONTINUED
B. Segment Information for Enterprise Funds
The City operates five enterprise funds. Selected segment information is presented below.
Water Sewer Recycling
Operating revenue $ 477,867 $ 855,189 $ 98,194
Depreciation expense 181,113 203,538
Operating income (loss) 74,065 98,808 (18,367 )
Operating transfers in
Operating transfers out
Net income 64,047 135,422 4,101
Current capital contributions 233,100
Fixed asset additions 233,100 38,412
Net working capital 2,522,355 3,477,834 62,153
Total assets 8,035,753 5,952,549 62,164
Bonds payable 2,360,000
Total equity 5,574,099 5,931,095 62,153
Stormwater
Management
Utility Liquor Total
Operating revenue $ 57,201 $ 469,847 $ 1,928,298
Depreciation expense 30,801 14,860 430,312
Operating income (loss) 2,054 22,869 179,429
Operating transfers in 30,000 30,000
Operating transfers out (30,000 ) (30,000 )
Net income 47,087 2,283 252,940
Current capital contributions 30,000 263,100
Fixed asset additions 213,816 485,328
Net working capital 142,931 459,035 6,664,308
Total assets 1,450,090 833,364 16,333,920
Bonds payable 2,360,000
Total equity 1,299,089 698,828 13,565,264
C. Legal Debt Margin
In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of two percent
of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and,
therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax
increments. There is no debt subject to the limit.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 3l, 2003
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Note 7: OPERATING LEASES
The City leases space for liquor store operations. These leases are considered, for accounting purposes, to be operating I
leases. Lease expense for the year ended December 31, 2003 amounted to $ll2, 723. Future minimum lease payments
for all leases are as follows:
Year Ending Shorewood Waterford
December 3 L Plaza Center Total
2004 $ 44,246 $ 55,000 $ 99,246
2005 55,216 55,000 110,216
2006 57,410 55,000 112,410
2007 59,603 13,750 73,353
2008 10.239 10.239
Total $ 226.714 $ 178.750 $ 405.464
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The new lease for Waterford Center began April 1, 2002 and will run through March 31,2007. On July 23,2003 the
lease for Shorewood Plaza was extended for a period of five years commencing November 1,2003 and terminating I
October 31,2008.
Note 8:
NEW REPORTING STANDARD
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In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 "Basic Financial
Statement and Management's Discussion and Analysis for State and Local Governments." This Statement establishes
new financial reporting requirements for state and local governments throughout the United States. When
implemented, it will require new information and restructure much of the information that governments have
presented in the past. Comparability with reports issued in all prior years will be affected. The City is required to
implement this standard for the fiscal year ending December 31,2004. The City has not yet determined the full
impact that the adoption of GASB Statement No. 34 will have on the financial statements. These financial statements
are presented in accordance with the fmancial reporting model in effect prior to that described in GASB Statement
No. 34.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
The general fund is used to account for resources traditionally associated with government, which are not required legally or by
sound financial management to be accounted for in other funds. It normally receives a greater variety and number of taxes and
other general revenues than any other fund. The majority of the current day-to-day operations will be financed from this fund.
ASSETS
Cash and temporary investments
Receivables
Accrued interest
Delinquent taxes
Accounts
Special assessments
Delinquent
Deferred
Prepaid items
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Due to other governments
Salaries payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Reserved for prepaid items
Umeserved
Designated for working capital
TOTAL FUND BALANCE
CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
CONWARATIVEBALANCESHEETS
DECEMBER 3l, 2003 AND 2002
TOTAL LIABILITIES AND FUND BALANCE
-28-
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Exhibit A-I
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2003 2002 I
$ 2,557,765 $ 2,l61,617 I
20,181 l7,296
51,946 59,575 I
17,88l 33,700
92 I
21,456 21,511
44,994
$ 2,669,229 $ 2,338,785 I
$ 50,102 $ 116,624 I
4,074 2,82l
12,32l 7,338 I
56,260 54,024
122,757 180,807 I
44,994 I
2,546,472 2,112,984
2,546,472 2,157,978 I
$ 2,669,229 $ 2,338,785 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
I YEAR ENDED DECEMBER 31, 2003
(With comparative actual amounts for the year ended December 31,2002)
2003 2002
I Variance -
Favorable
Budget Actual (Unfavorable) Actual
I REVENUE
Taxes
General property taxes $ 3,156,847 $ 2,965,830 $ (191,017) $ 2,558,366
I Fiscal disparities 106,023 106,023 100,297
Total 3,156,847 3,071,853 (84,994) 2,658,663
I Licenses and permits
Business 13,050 14,734 1,684 13,859
Nonbusiness 229,000 319,690 90,690 215,375
I Total 242,050 334,424 92,374 229,234
I Intergovernmental
State
Local government aid 8,418 (8,418) 8,417
I Property tax credits 96,244
Other 61,757 65,782 4,025 67,122
I Total 70,175 65,782 (4,393) 171,783
Charges for services
General government 20,000 12,355 (7,645) 28,175
I Parks and recreation 15,000 36,334 21,334 17,904
Total 35,000 48,689 13,689 46,079
I Fines and forfeitures 60,000 88,949 28,949 89,632
I Interest on investments 94,800 55,649 (39,151) 114,832
Miscellaneous revenue
I Refunds and reimbursements 8,600 13,862 5,262 6,907
Contributions and donations 285,000
Other 21,600 19,838 (1,762) 28,003
I Total 30,200 33,700 3,500 319,910
TOTAL REVENUE 3,689,072 3,699,046 9,974 3,630,133
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND I
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGETANDACTUAL-CONTlNUED
YEAR ENDED DECEMBER 31, 2003 I
(With comparative actual amounts for the year ended December 31, 2002)
2003 2002 I
Variance -
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES I
Current
General government
Mayor and Council I
Personal services $ 13,564 $ 13,564 $ $ 13,564
Supplies 1,500 526 974 544
Other services and charges 110,900 46,798 64,102 79,585 I
Total 125,964 60,888 65,076 93,693
Administrative I
Personal services 111,512 103,766 7,746 98,716
Supplies 400 400
Other services and charges 10,450 6,587 3,863 5,823 I
Total 122,362 110,353 12,009 104,539
City clerk I
Personal services 134,780 126,512 8,268 128,277
Supplies 37,250 24,436 12,814 20,620 I
Other services and charges 30,250 20,741 9,509 27,834
Total 202,280 171,689 30,591 176,731
Finance I
Personal services 120,685 137,883 (17,198) 117,030
Supplies 18,500 5,176 13,324 1,090 I
Other services and charges 10,200 5,359 4,841 7,888
Total 149,385 148,418 967 126,008 I
Professional services
Supplies 8,820 I
Other services and charges 206,800 169,144 37,656 160,574
Total 206,800 169,144 37,656 169,394
Planning and zoning I
Personal services 127,326 141,216 (13,890) 128,405
Supplies 3,200 994 2,206 842 I
Other services and charges 14,550 10,818 3,732 16,962
Total 145,076 153,028 (7,952) 146,209 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGET AND ACTUAL-CONTINUED
I YEAR ENDED DECEMBER 31, 2003
(With comparative actual amounts for the year ended December 31, 2002)
2003 2002
I Variance -
Favorable
Budget Actual (Unfavorable) Actual
I EXPENDITURES - CONTINUED
Current - Continued
General government - Continued
I Municipal building
Supplies $ 17,005 $ 13,198 $ 3,807 $ 7,332
Other services and charges 104,310 98,160 6,150 82,228
I Total 121,315 111,358 9,957 89,560
I City engineer
Personal services 101,279 108,273 (6,994) 94,212
Supplies 1,100 420 680 196
Other services and charges 11 ,900 5,338 6,562 1,379
I Total 114,279 114,031 248 95,787
I Total general government 1,187,461 1,038,909 148,552 1,001,921
Public safety
I Police protection
Other services and charges 645,758 630,910 14,848 609,192
Fire protection
I Other services and charges 250,997 251,912 (915) 293,029
Animal control
I Other services and charges 23,500 19,495 4,005 19,900
Protective inspection
I Personal services 91,670 89,529 2,141 77,595
Supplies 400 89 311 361
Other services and charges 9,550 7,114 2,436 8,715
I Total 101,620 96,732 4,888 86,671
Total public safety 1,021,875 999,049 22,826 1,008,792
I Public works
General maintenance
I Personal services 202,860 165,724 37,136 166,853
Supplies 43,500 32,706 10,794 34,320
Other services and charges 27,400 29,049 (1,649) 24,113
I Total 273,760 227,479 46,281 225,286
I -31-
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND I
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGETANDACTUAL-CONTINUED
YEAR ENDED DECEMBER 31, 2003 I
(With comparative actual amounts for the year ended December 31,2002)
2003 2002 I
Variance -
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED I
Current - Continued
Public works
Streets and highways I
Personal services $ 107,156 $ 55,335 $ 51,821 $ 62,839
Supplies 38,000 29,235 8,765 32,277
Other services and charges 7,500 7,547 (47) 8,930 I
Total 152,656 92,117 60,539 104,046
Snow and ice removal I
Personal services 32,935 18,793 14,142 14,655
Supplies 20,000 21,629 (1,629) 25,358
Total 52,935 40,422 12,513 40,013 I
Traffic control I
Supplies 5,050 2,752 2,298 1,249
Other services and charges 35,200 33,913 1,287 33,229
Total 40,250 36,665 3,585 34,478 I
Sanitation and waste removal
Personal services 650 363 (5,513) 1,138 I
Other services and charges 3,800 6,163 3,437 2,854
Total 4,450 6,526 (2,076) 3,992 I
Tree maintenance
Personal services 10,652 14,928 (4,276) 14,911 I
Supplies 900 206 694 369
Other services and charges 13,300 2,265 11,035 5,435
Total 24,852 17,399 7,453 20,715 I
Total public works 548,903 420,608 128,295 428,530 I
Culture and recreation
Personal services 115,683 109,453 6,230 110,551
Supplies 20,600 9,273 11,327 10,367 I
Other services and charges 63,300 45,814 17,486 39,197
Total culture and recreation 199,583 164,540 35,043 160,115 I
Total current expenditures 2,957,822 2,623,106 334,716 2,599,358
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
BUDGETANDACTUAL-CONTINUED
I YEAR ENDED DECEMBER 31, 2003
(With comparative actual amounts for the year ended December 31,2002)
2003 2002
I Variance -
Favorable
Budget Actual (Unfavorable) Actual
I EXPENDITURES - CONTINUED
Capital outlay
General government $ 10,800 $ 10,787 $ 13 $ 11,601
I Public safety 307,100 301,189 5,911 287
Public works 11,650 2,926 8,724 655
Culture and recreation 500 500 291,678
I Total capital outlay 330,050 314,902 15,148 304,221
Debt service
I Principal 26,402 26,402 24,833
Interest and other 11,148 11,142 6 12,711
I Total debt service 37,550 37,544 6 37,544
TOTAL EXPENDITURES 3,325,422 2,975,552 349,870 2,941,123
I EXCESS (DEflCffiNCY) OF
REVENUE OVER EXPENDITURES 363,650 723,494 359,844 689,010
I OTHER FINANCING SOURCES (USES)
Operating transfers in 30,000 30,000 55,000
Operating transfers out (393,650) (365,000) 28,650 (609,100)
I TOTAL OTHER FINANCING SOURCES (USES) (363,650) (335,000) 28,650 (554,100)
I EXCESS (DEflCffiNCY) OF
REVENUE AND OTHER flNANCING
SOURCES OVER EXPENDITURES
I AND OTHER FINANCING USES $ 388,494 $ 388,494 134,910
FUND BALANCE, JANUARY 1 2,157,978 2,023,068
I FUND BALANCE, DECEMBER 31 $ 2,546,472 $ 2,157,978
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
Debt service funds are used to account for the payment of interest and principal on long-term general obligation debt other than
debt issued for and serviced primarily by enterprise funds.
1993 Improvement and Refundin!! Fund - This fund was established to account for the accumulation of resources for payment
of interest and principal on bonds issued for the Season's development improvements and to refund the 1987 refunding bonds.
Waterford ill Tax Increment Fund - This fund was established to account for the accumulation of resources for payment of
interest and principal on bonds issued for the Waterford III Intersection Improvements.
1991 Improvement and Refundin!! Fund - This fund was established to account for the accumulation of resources for the
payment of interest and principal on bonds issued for the SE water treatment plant, Pine Bend improvements, Church Road
improvements, and to refund the 1986 improvement bonds.
2002 Public Safetv Buildin!! - This fund was established to account for the accumulation of resources for the payment of interest
and principal on bonds issued to finance construction of the public safety facility.
2003 Public Safetv Buildin!! - This fund was established to account for the accumulation of resources for the payment of interest
and principal on bonds issued to finance construction of the public safety facility.
ASSETS
Cash and temporary investments
Receivables
Accrued interest
Special assessments
Deferred
Lease
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to other funds
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Reserved for:
Debt service
Umeserved (deficit)
Undesignated
TOTAL FUND BALANCE
CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31,2003
(With comparative totals for December 31,2002)
1993
Improvement
and
Refunding
$ 108,350
575
18,859
$ 127,784
$
18,859
18,859
108,925
108,925
TOTAL LIABILItIES AND FUND BALANCE
$ 127,784
-34-
Waterford
III Tax
Increment
$ 10,084
$ 10,137
$
10,137
10,137
$ 10,137
1991
Improvement
and
Refunding
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$
53
$
$
$
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Exhibit B-1
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I 2002 2003
Public Safety Public Safety Totals
Building Building 2003 2002
I $ 82,183 $ 4,105 $ 204,722 $ 207,489
628 1,312
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18,859 27,048
9,950,000 2,415,000 12,365,000 9,950,000
I 40,000
$ 10,032,183 $ 2,419,105 $ 12,589,209 $ 10,225,849
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I $ $ $ $ 40,000
9,950,000 2,415,000 12,383,859 9,977,048
I 9,950,000 2,415,000 12,383,859 10,017,048
I 82,183 4,105 205,350 246,283
I (37,482)
82,183 4,105 205,350 208,801
I $ 10,032,183 $ 2,419,105 $ 12,589,209 $ 10,225,849
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed
by enterprise funds.
Public Facilities/Office EQuipment - This fund was established to account for capital improvement projects for public facilities
and replacement of office equipment that may be fInanced without the need to issue bonds.
Park Capital Improvement - This fund accounts for park land acquisition and other capital improvements in the City parks.
EQuipment Replacement - This fund was established for the purpose of funding the replacement of capital equipment.
Street Reconstruction - This fund was established for the purpose of funding the periodic reconstruction of City streets and
roadways.
MSA Construction - This fund was established to account for the accumulation of Municipal State Aid (MSA) to fund the
periodic reconstruction ofMSA designated roads.
Senior Community Center - This fund was established to account for the construction of a Senior Community Center.
EDA - Public Safetv Facilities Proiect - This fund was established for the purpose of accounting for construction of the new
public safety facility.
ASSETS
Cash and temporary investments
Receivables
Accrued interest
Accounts
Due from other funds
Public
F acilities/ Park
Office Capital Equipment
Equipment Improvement Replacement
$ 104,666 $ 181,620 $ 36l,816
527 975 l,922
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBnrrNGBALANCESHEET
DECEMBER 31, 2003
(With comparative totals for December 31, 2002)
TOTAL ASSETS
$ 105,193
$ 182,595
$ 363,738
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Due to other funds
$
$
$ 42,100
TOTAL LIABILITIES
42,100
FUND BALANCE
Umeserved
Designated
105,193
182,595
321,638
TOTAL LIABILITIES AND FUND BALANCE
$ 105,193
$ 182,595
$ 363,738
-38-
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Exhibit C-l
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EDA
I Public
Senior Safety
Street MSA Community Facilities Totals
I Reconstruction Construction Center Project 2003 2002
$ 1,804,710 $ 83,974 $ 35,358 $ 2,674,356 $ 5,246,500 $ 10,684,999
I 9,857 188 13,469 15,145
387,137 387,137 42,085
50,000 50,000
I $ 1,864,567 $ 471,111 $ 35,546 $ 2,674,356 $ 5,697,106 $ 10,742,229
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$ 863 $ 4,046 $ $ 1,037,618 $ 1,084,627 $ 660,411
I 50,000 50,000
863 54,046 1,037,618 1,134,627 660,411
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I 1,863,704 417,065 35,546 1,636,738 4,562,479 10,081,818
$ 1,864,567 $ 471,111 $ 35,546 $ 2,674,356 $ 5,697,106 $ 10,742,229
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31,2003 I
(With comparative totals for the year ended December 31,2002)
Public I
Facilities/ Park
Office Capital Equipment I
Equipment Improvement Replacement
REVENUE
Intergovernmental $ $ $ I
Special assessments
Interest on investments 926 1,081 4,132
Miscellaneous I
Park dedication fees 61,532
Contributions and donations
Other 8,131 100
TOTAL REVENUE 926 70,744 4,232 I
EXPENDITURES I
Capital outlay
General government 10,355 117,482
Public safety I
Public works
Culture and recreation 13,842
Debt service I
Interest and other
TOTAL EXPENDITURES 10,355 13,842 117,482 I
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENDITURES (9,429) 56,902 (113,250) I
OTHER FINANCING SOURCES
Proceeds from sale of bonds
Operating transfers in 35,000 30,000 70,000 I
TOTAL OTHER FINANCING SOURCES 35,000 30,000 70,000
EXCESS (DEFICIENCY) OF I
REVENUE AND OTHER FINANCING
SOURCES OVER EXPENDITURES 25,571 86,902 (43,250) I
FUND BALANCE, JANUARY 1 79,622 95,693 364,888
RESIDUAL EQUITY TRANSFER OUT I
FUND BALANCE, DECEMBER 31 $ 105,193 $ 182,595 $ 321,638 I
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are fInanced and operated in a manner similar to private business, where
the costs of providing services to the general public are fInanced primarily through user charges.
Water Fund - This fund is used to account for the activities of the City water system and to service debt incurred in the building
of infrastructure for the system.
Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system.
Recvclinf! Fund - This fund is used to account for the activities of the City recycling program.
Stormwater Manaf!ement Utility Fnnd - This fund is used to account for the activities of the City stormwater management
system.
Liauor Fund - This fund is used to account for the activities of the City's off-sale liquor operation. The operation consisted of
two off-sale liquor store sites in 2003. A portion of the net income generated by the operation, if any, is used to fund general fund
activities.
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS I
COMBINING BALANCE SHEET
DECEMBER 31, 2003
(With comparative totals for December 3l, 2002) I
Water Sewer Recycling I
ASSETS
CURRENT ASSETS I
Cash and temporary investments $ 2,366,325 $ 3,104,580 $ 43,763
Receivables
Accrued interest 8,410 16,427 232 I
Accounts 83,558 215,163 17,203
Special assessments
Delinquent 1,703 2,175 332
Deferred 349,765 lO,225 634 I
Due from other funds 150,000
Inventories, at cost I
Prepaid items 4,248 718
TOTAL CURRENT ASSETS 2,814,009 3,499,288 62,164
FIXED ASSETS, AT COST 7,110,536 7,967,215 I
LESS ACCUMULATED DEPRECIATION (1,915,639) (5,513,954)
NET FIXED ASSETS 5,194,897 2,453,261 I
OTHER ASSETS
Bond discount, net of amortization 26,847
TOTAL ASSETS $ 8,035,753 $ 5,952,549 $ 62,164 I
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES I
Accounts and contracts payable $ 17,144 $ 13,599 $ 11
Due to other funds
Due to other governments 1,583 7,574 I
Salaries and compensated absences payable 546 281
Accrued .interest payable 40,825
Deferred revenue 41,556 I
Current portion oflong-term debt 190,000
TOTAL CURRENT LIABILITIES 291,654 21,454 11
LONG-TERM LIABILITIES I
Bonds payable less current portion above 2,170,000
TOTAL LIABILITIES 2,461,654 21,454 11 I
FUND EQUITY
Contributed capital 5,157,158 4,657,264
Retained earnings I
Unreserved 416,941 1,273,831 62,153
TOTAL FUND EQUITY 5,574,099 5,931,095 62,153 I
TOTAL LIABILITIES AND FUND EQUITY $ 8,035,753 $ 5,952,549 $ 62,164
-42- I
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 2003
(With comparative totals for the year ended December 31, 2002) I
Water Sewer Recycling I
OPERATING REVENUE
Sales $ $ $ I
Less cost of sales
GROSS PROFIT
Charges for services 423,687 811,827 98,194 I
Permits and connection fees 24,180 43,362
GROSS PROFIT AND REVENUE 447,867 855,189 98,194
OPERATING EXPENSES I
Personal services 70,966 52,468 591
Supplies 11,150 1,677 990 I
Repairs and maintenance 18,620 10,237
Depreciation 181,113 203,538
Professional services 2,353 2,497
Contracted services 7,751 6,283 114,875 I
Communication
Insurance 4,281 1,180
Water purchases 13,135 I
Utilities 56,855 6,414
Disposal charges 459,949
Rent I
Advertising
Other 7,578 12,138 105
TOTAL OPERATING EXPENSES 373,802 756,381 116,561 I
OPERATING INCOME (LOSS) 74,065 98,808 (18,367)
NONOPERATING REVENUE (EXPENSES) I
Special assessments 23,352
Interest on investments 22,210 39,219 594
Antenna lease I
Other income (expense) 45,858 (2,605) 21,874
Interest expense (101,438)
TOTAL NONOPERATING REVENUE (EXPENSES) (10,018) 36,614 22,468 I
INCOME BEFORE TRANSFERS 64,047 135,422 4,101
OPERATING TRANSFERS IN I
OPERATING TRANSFERS OUT
NET INCOME 64,047 135,422 4,101
RETAINED EARNINGS, JANUARY 1 352,894 1,138,409 58,052 I
RETAINED EARNINGS, DECEMBER 31 $ 416,941 $ 1,273,831 $ 62,153
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Exhibit D-2
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I Stormwater
I Management Totals
Utility Liquor 2003 2002
$ $ 1,772,748 $ 1,772,748 $ 2,507,191
I (1,302,901) (1,302,901) (1,829,852)
469,847 469,847 677,339
I 57,201 1,390,909 1,086,870
67,542 24,892
57,201 469,847 1,928,298 1,789,101
I 2,493 233,563 360,081 377,780
1,074 8,137 23,028 37,834
I 28,857 29,726
30,801 14,860 430,312 397,557
15,126 3,284 23,260 11,930
I 4,275 7,102 140,286 240,447
1,378 1,378 1,551
14,534 19,995 19,239
I 13,135 11,863
17,974 81,243 80,051
459,949 354,887
I 112,723 112,723 149,172
9,752 9,752 7,694
25,049 44,870 43,701
I 55,147 446,978 1,748,869 1,763,432
2,054 22,869 179,429 25,669
I 23,352 (1,204)
2,576 8,910 73,509 190,070
I 20,835 20,835 56,636
499 504 66,130 74,609
(8,877) (110,315) (100,122)
I 15,033 9,414 73,511 219,989
17,087 32,283 252,940 245,658
30,000 30,000 35,000
I (30,000) (30,000) (55,000)
47,087 2,283 252,940 225,658
I 633,745 666,545 2,849,645 2,623,987
$ 680,832 $ 668,828 $ 3,102,585 $ 2,849,645
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS I
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31,2003
(With comparative totals for the year ended December 31, 2002) I
Water Sewer Recycling I
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 74,065 $ 98,808 $ (18,367) I
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Other income (loss) related to operations 45,858 (2,605) 21,874 I
Depreciation 181,113 203,538
Amortization 2,194
(Increase) decrease in assets: I
Accounts receivable (32,867) (31,915) (2,177)
Special assessments receivable 1,199 593
Inventories
Prepaid items 1,014 2,149 I
Increase (decrease) in liabilities:
Accounts payable 6,835 (7,717) (194)
Due to other governments (1,790) (7,870) I
Salaries and compensated absences payable 284 (207)
NET CASH PROVIDED
BY OPERATING ACTIVITIES 276,706 255,380 1,729 I
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
(Increase) decrease in due from other funds 30,000 I
Operating transfers in
Interest paid on interfund loan
Increase (decrease) in due to other funds I
Operating transfers out
NET CASH PROVIDED (USED)
BY NONCAPITAL FINANCING ACTIVITIES 30,000 I
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Issuance of bonds, net of discount 799,026 I
Principal paid on revenue bonds (185,000)
Interest paid on revenue bonds (97,435)
Acquisition of fixed assets (38,412) I
Proceeds from sale of fixed assets
Special assessments collected 69,863
NET CASH PROVIDED (USED) I
BY CAPITAL AND RELATED FINANCING ACTIVITIES 586,454 (38,412)
CASH FLOWS FROM INVESTING ACTIVITIES I
Interest received on investments 22,300 34,307 577
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 885,460 281,275 2,306 I
CASH AND CASH EQUIVALENTS, JANUARY 1 1,480,865 2,823,305 41,457
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 2,366,325 $ 3,104,580 $ 43,763
-46- I
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Exhibit D-3
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I Stormwater
I Management Totals
Utility Liquor 2003 2002
I $ 2,054 $ 22,869 $ 179,429 $ 25,669
21,334 504 86,965 130,945
I 30,801 14,860 430,312 397,557
2,194 1,403
I 53,109 (27,318) (41,168) (45,481)
1,029 2,821 8,336
4,911 4,911 28,948
I 3,471 6,634 34,624
796 8,668 8,388 (12,750)
I 6,236 (3,424) 9,373
2,111 2,188 4,732
I 109,123 36,312 679,250 583,356
I 30,000 427,039
30,000 30,000 35,000
(8,877) (8,877) (9,863)
I (30,000) (30,000) (20,000)
(30,000) (30,000) (55,000)
I (8,877) (30,000) (8,877) 377,176
I 799,026
(185,000) (185,000)
(97,435) (93,280)
I (183,816) (222,228) (8,765)
7,669
69,863 149,208
I (183,816) 364,226 (130,168)
I 1,677 9,156 68,017 179,394
101,923 (168,348) 1,102,616 1,009,758
I 173,094 473,518 4,992,239 3,982,481
$ 275,017 $ 305,170 $ 6,094,855 $ 4,992,239
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS - CONTINUED
YEAR ENDED DECEMBER 31, 2003
(With comparative totals for the year ended December 31, 2002)
Water Sewer
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Retirement of fixed assets $ $
Fixed assets acquired from other funds $ $
Fixed assets acquired from developer $ 233,100 $
Fixed assets acquired from landlord $ $
Discount on bonds issued $ 15,974 $
-48-
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Exhibit D-3
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I Stormwater
I Management Totals
Utility Liquor 2003 2002
$ $ $ $ 33,204
I $ $ $ $ 143,489
I $ $ $ 233,100 $
$ $ 30,000 $ 30,000 $
I $ $ $ 15,974 $
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-4
WATER FUND I
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2003 AND 2002
2003 2002 I
ASSETS
CURRENT ASSETS I
Cash and temporary investments $ 2,366,325 $ 1,480,865
Receivables
Accrued interest 8,410 8,499
Accounts 83,558 50,691 I
Special assessments
Delinquent 1,703 4,286
Deferred 349,765 392,531 I
Prepaid items 4,248 5,262
TOTAL CURRENT ASSETS 2,814,009 1,942,134 I
FIXED ASSETS, AT COST 7,110,536 6,877,436
LESS ACCUMULATED DEPRECIATION (1,915,639) (1,734,526) I
NET FIXED ASSETS 5,194,897 5,142,910
OTHER ASSETS I
Bond discount, net of amortization 26,847 13,068
TOTAL ASSETS $ 8,035,753 $ 7,098,112 I
LIABILITIES AND FUND EQUITY I
CURRENT LIABILITIES
Accounts and contracts payable $ 17,144 $ 10,309
Due to other governments 1,583 3,373 I
Accrued interest payable 40,825 36,822
Salaries and compensated absences payable 546 262
Deferred revenue 41,556 40,394 I
Current portion oflong-term debt 190,000 185,000
TOTAL CURRENT LIABILITIES 291,654 276,160 I
LONG -TERM LIABILITIES
Bonds payable less current portion above 2,170,000 1,545,000 I
TOTAL LIABILITIES 2,461,654 1,821,160
FUND EQUITY I
Contributed capital 5,157,158 4,924,058
Retained earnings
Unreserved 416,941 352,894 I
TOTAL FUND EQUITY 5,574,099 5,276,952
TOTAL LIABILITIES AND FUND EQUITY $ 8,035,753 $ 7,098,112 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-5
I WATER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 2003 AND 2002
I 2003 2002
OPERATING REVENUE
I Charges for services $ 423,687 $ 270,875
Permits and connection fees 24,180 16,590
I TOTAL OPERATING REVENUE 447,867 287,465
OPERATING EXPENSES
Personal services 70,966 48,430
I Supplies 11,150 13,385
Repairs and maintenance 18,620 14,811
Depreciation 181,113 180,805
I Professional services 2,353 1,544
Contracted services 7,751 80,925
Insurance 4,281 4,384
I Water purchases 13,135 11,862
Utilities 56,855 50,271
Other 7,578 10,963
I TOTAL OPERATING EXPENSES 373,802 417,380
I OPERATING INCOME (LOSS) 74,065 (129,915)
NONOPERATING REVENUE (EXPENSES)
I Special assessments 23,352 (1,204)
Interest on investments 22,210 60,511
Other income 45,858 46,703
I Interest expense (101,438) (90,258)
TOTAL NONOPERATING REVENUE (EXPENSES) (10,018) 15,752
I INCOME (LOSS) BEFORE TRANSFERS 64,047 (114,163)
OPERATING TRANSFER OUT (10,000)
I NET INCOME (LOSS) 64,047 (124,163)
I RETAINED EARNINGS, JANUARY 1 352,894 477,057
RETAINED EARNINGS, DECEMBER 31 $ 416,941 $ 352,894
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-6
WATER FUND I
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2003 AND 2002
2003 2002 I
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 74,065 $ (129,915) I
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Other income related to operations 45,858 46,703 I
Depreciation 181,113 180,805
Amortization 2,194 1,403
(Increase) decrease in assets: I
Accounts receivable (32,867) 17,453
Prepaid items 1,014 3,947
Increase (decrease) in liabilities: I
Accounts and contracts payable 6,835 (54,609)
Due to other governments (1,790) 3,373
Salaries and compensated absences payable 284 262
NET CASH PROVIDED BY OPERATING ACTIVITIES 276,706 69,422 I
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES I
Operating transfers to other funds (10,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES I
Issuance of bonds, net of discount 799,026
Bond principal paid (185,000) (185,000) I
Interest paid on revenue bonds (97,435) (93,280)
Acquisition of fIxed assets (935)
Special assessments collected 69,863 149,208
NET CASH PROVIDED (USED) I
BY CAPITAL AND RELATED FINANCING ACTIVITIES 586,454 (130,007)
CASH FLOWS FROM INVESTING ACTIVITIES I
Interest received on investments 22,300 56,642
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 885,460 (13,943) I
CASH AND CASH EQUIVALENTS, JANUARY I 1,480,865 1,494,808 I
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 2,366,325 $ 1,480,865
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES I
Fixed assets acquired from developer $ 233,100 $
Discount on bonds issued $ 15,974 $ I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-7
I SEWER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 2003 AND 2002
I 2003 2002
ASSETS
I CURRENT ASSETS
Cash and temporary investments $ 3,104,580 $ 2,823,305
Receivables
I Accrued interest 16,427 11,515
Accounts 215,163 183,248
Special assessments
I Delinquent 2,175 5,955
Deferred 10,225 7,644
Due from other funds 150,000 180,000
Prepaid items 718 2,867
I TOTAL CURRENT ASSETS 3,499,288 3,214,534
I FIXED ASSETS, AT COST 7,967,215 7,928,803
LESS ACCUMULATED DEPRECIATION (5,513,954) (5,310,416)
I NET FIXED ASSETS 2,453,261 2,618,387
TOTAL ASSETS $ 5,952,549 $ 5,832,921
I LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
I Accounts and contracts payable $ 13,599 $ 21,316
Due to other governments 7,574 15,444
Salaries and compensated absences payable 281 488
I TOTAL CURRENT LIABILITIES 21,454 37,248
I FUND EQUITY
Contributed capital 4,657,264 4,657,264
Retained earnings
I Unreserved 1,273,831 1,138,409
TOTAL FUND EQUITY 5,931,095 5,795,673
I TOTAL LIABILITIES AND FUND EQUITY $ 5,952,549 $ 5,832,921
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-8
SEWER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 2003 AND 2002
2003 2002
OPERATING REVENUE
Charges for services $ 811,827 $ 690,150
Permits and connection fees 43,362 8,302
TOTAL OPERATING REVENUE 855,189 698,452
OPERATING EXPENSES
Personal services 52,468 32,068
Supplies 1,677 6,418
Repairs and maintenance 10,237 14,915
Depreciation 203,538 202,291
Professional services 2,497 1,890
Contracted services 6,283 49,099
Insurance 1,180 1,344
Utilities 6,414 5,256
MCES charges 442,403 339,960
Excelsior sewer charges 17,546 14,927
Other 12,138 1,070
TOTAL OPERATING EXPENSES 756,381 669,238
OPERATING INCOME 98,808 29,214
NONOPERATING REVENUE
Interest on investments 39,219 109,107
Other income (expense) (2,605) 2,353
TOTAL NONOPERATING REVENUE 36,614 111,460
INCOME BEFORE TRANSFERS 135,422 140,674
OPERATING TRANSFER OUT (15,000)
NET INCOME 135,422 125,674
RETAINED EARNINGS, JANUARY 1 1,138,409 1,012,735
RETAINED EARNINGS, DECEMBER 31 $ 1,273,831 $ 1,138,409
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-9
SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2003 AND 2002
2003 2002
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 98,808 $ 29,214
Adjustments to reconcile operating income
to net cash provided by operating activities:
Other income (expense) related to operations (2,605) 2,353
Depreciation 203,538 202,291
(Increase) decrease in assets:
Accounts receivable (31,915) (10,731)
Special assessments receivable 1,199 7,623
Prepaid items 2,149 29,198
Increase (decrease) in liabilities:
Accounts and contracts payable (7,717) 5,523
Due to other governments (7,870) 15,444
Salaries and compensated absences payable (207) 488
NET CASH PROVIDED BY OPERATING ACTIVITIES 255,380 281,403
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
(Increase) decrease in due from other funds 30,000 427,039
Operating transfers out (15,000)
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 30,000 412,039
CASH FLOWS FROM CAP IT AL AND RELATED FINANCING ACTIVITIES
Acquisition of fIxed assets (38,412)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 34,307 103,856
NET INCREASE IN CASH AND CASH EQUIVALENTS 281,275 797,298
CASH AND CASH EQUIVALENTS, JANUARY 1 2,823,305 2,026,007
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 3,104,580 $ 2,823,305
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ASSETS
CURRENT ASSETS
Cash and temporary investments
Receivables
Accrued interest
Accounts
Special assessments
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
FUND EQUITY
Retained earnings
Umeserved
CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 2003 AND 2002
TOTAL LIABILITIES AND FUND EQUITY
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Exhibit D-IO
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2003 2002 I
$ 43,763 $ 41,457 I
232 215 I
17,203 15,026
332 618
634 941 I
$ 62,164 $ 58,257
I
$ 11 $ 205 I
62,153 58,052 I
$ 62,164 $ 58,257 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-ll
RECYCLING FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2003 AND 2002
2003 2002
OPERATING REVENUE
Charges for services $ 98,194 $ 81,860
OPERATING EXPENSES
Personal services 591 498
Supplies 990 1,694
Contracted service 114,875 102,382
Other 105 134
TOTAL OPERATING EXPENSES 116,561 104,708
OPERATING LOSS ( 18,367) (22,848)
NONOPERATING REVENUE
County recycling grant 21,460 23,690
Interest on investments 594 1,655
Other 414 1,176
TOTAL NONOPERATING REVENUE 22,468 26,521
NET INCOME 4,101 3,673
RETAINED EARNINGS, JANUARY 1 58,052 54,379
RETAINED EARNINGS, DECEMBER 31 $ 62,153 $ 58,052
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CITY OF SHOREWOOD, MINNESOTA
RECYCLING FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2003 AND 2002
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating loss
to net cash provided by operating activities:
County recycling grant
Other income related to operations
(Increase) decrease in assets:
Accounts receivable
Special assessments receivable
Increase (decrease) in liabilities:
Accounts payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments
INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
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Exhibit D-12
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2003 2002 I
$ (18,367) $ (22,848) I
21,460 23,690 I
414 1,176
(2,177) (148) I
593 157
(194) 205
1,729 2,232 I
577 1,440 I
2,306 3,672 I
41,457 37,785
$ 43,763 $ 41,457 I
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-13
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2003 AND 2002
2003 2002
ASSETS
CURRENT ASSETS
Cash and investments $ 275,017 $ 173,094
Receivables
Accrued interest 1,667 768
Accounts 16,486 69,595
Special assessments
Delinquent 219 443
Deferred 543 1,348
TOTAL CURRENT ASSETS 293,932 245,248
FIXED ASSETS, AT COST 1,197,705 1,197,705
LESS ACCUMULATED DEPRECIATION (41,547) (10,746)
NET FIXED ASSETS 1,156,158 1,186,959
TOTAL ASSETS ' $ 1,450,090 $ 1,432,207
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,001 $ 205
Due to other funds 150,000 180,000
TOTAL CURRENT LIABILITIES 151,001 180,205
FUND EQUITY
Contributed capital 618,257 618,257
Retained earnings
Unreserved 680,832 633,745
TOTAL FUND EQUITY 1,299,089 1,252,002
TOTAL LIABILITIES AND FUND EQUITY $ 1,450,090 $ 1,432,207
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-14
STORMW A TER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2003 AND 2002
2003 2002
OPERATING REVENUE
Charges for services $ 57,201 $ 43,985
OPERATING EXPENSES
Personal services 2,493 2,299
Supplies 1,074 3,376
Depreciation 30,801 4,376
Professional services 15,126 740
Contracted services 4,275 5,820
Other 1,378 1,550
TOTAL OPERATING EXPENSES 55,147 18,161
OPERATING INCOME 2,054 25,824
NONOPERATING REVENUE (EXPENSES)
Interest on investments 2,576 5,576
Antenna lease 20,835 56,637
Other income 499 368
Interest expense (8,877) (9,863)
TOTAL NONOPERATING REVENUE (EXPENSES) 15,033 52,718
INCOME BEFORE OPERATING TRANSFERS 17,087 78,542
OPERATING TRANSFER FROM OTHER FUNDS 30,000 35,000
NET INCOME 47,087 113,542
RETAINED EARNINGS, JANUARY 1 633,745 520,203
RETAINED EARNINGS, DECEMBER 31 $ 680,832 $ 633,745
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I CITY OF SHOREWOOD, MINNESOTA Exhibit D-15
I STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2003 AND 2002
I 2003 2002
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 2,054 $ 25,824
I Adjustments to reconcile operating income
to net cash provided by operating activities:
Antenna lease 20,835 56,636
I Other income related to operations 499 368
Depreciation 30,801 4,376
(Increase) decrease in assets:
I Accounts receivable 53,109 (56,572)
Special assessments receivable 1,029 556
Increase (decrease) in liabilities:
I Accounts payable 796 (3,689)
NET CASH PROVIDED BY OPERATING ACTIVITIES 109,123 27,499
I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds 30,000 35,000
-I Interest paid on interfund loan (8,877) (9,863)
Decrease in due to other funds (30,000) (20,000)
I NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (8,877) 5,137
I CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,677 5,353
I NET INCREASE IN CASH AND CASH EQUIVALENTS 101,923 37,989
CASH AND CASH EQUIVALENTS, JANUARY 1 173,094 135,105
I CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 275,017 $ 173,094
SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
I Fixed assets acquired from other funds $ $ 143,489
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31,2003 AND 2002
ASSETS
CURRENT ASSETS
Cash and temporary investments
Receivables
Accrued interest
Accounts receivable
Inventories
Prepaid items
TOTAL CURRENT ASSETS
FIXED ASSET, AT COST
LESS ACCUMULATED DEPRECIATION
NET FIXED ASSETS
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Due to other governments
TOTAL CURRENT LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings
Unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
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Exhibit D-16
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2003 2002 I
$ 305,170 $ 473,518 I
2,505 2,751 I
30,000 2,682
248,549 253,460
7,347 10,818
593,571 743,229 I
316,182 102,366 I
(76,389) (61,529)
239,793 40,837 I
$ 833,364 $ 784,066
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$ 96,867 $ 88,199 I
16,805 14,694
20,864 14,628
134,536 117,521 I
30,000 I
668,828 666,545 I
698,828 666,545
$ 833,364 $ 784,066 I
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CITY OF SHOREWOOD, MINNESOTA ExhibitD-17
LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 2003 AND 2002
2003 2002
OPERATING REVENUE
Sales $ 1,772,748 $ 2,507,191
Less cost of sales (1,302,901) (1,829,853)
TOTAL OPERATING REVENUE 469,847 677,338
OPERATING EXPENSES
Personal services 233,563 294,485
Supplies 8,137 12,964
Depreciation 14,860 10,085
Professional services 3,284 7,754
Contracted services 7,102 2,221
Insurance 14,534 13,511
Utilities 17,974 24,524
Rent 112,723 149,172
Advertising 9,752 7,694
Other 25,049 31,534
TOTAL OPERATING EXPENSES 446,978 553,944
OPERATING INCOME 22,869 123,394
NONOPERATING REVENUE
Interest on investments 8,910 13,220
Other income 504 319
TOTAL NONOPERATING REVENUE 9,414 13,539
INCOME BEFORE TRANSFERS 32,283 136,933
OPERATING TRANSFERS OUT (30,000) (30,000)
NET INCOME 2,283 106,933
RETAINED EARNINGS, JANUARY 1 666,545 559,612
RETAINED EARNINGS, DECEMBER 31 $ 668,828 $ 666,545
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-18
I LIQUOR FUND
COMP ARA TIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31,2003 AND 2002
I 2003 2002
CASH FLOWS FROM OPERATING ACTIVITIES
I Operating income $ 22,869 $ 123,394
Adjustments to reconcile operating income
to net cash provided by operating activities:
I Other income (expense) related to operations 504 19
Depreciation 14,860 10,085
(Increase) decrease in assets:
Accounts receivable (27,318) 4,517
I Inventories 4,911 28,948
Prepaid items 3,471 1,479
Increase (decrease) in liabilities:
I Accounts and contracts payable 8,668 39,820
Due to other governments 6,236 (9,444)
Salaries and compensated absences payable 2,111 3,982
I NET CASH PROVIDED BY OPERATING ACTIVITIES 36,312 202,800
I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers out (30,000) (30,000)
I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets (183,816) (7,830)
Proceeds from sale of fixed assets 7,669
I NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (183,816) (161)
I CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 9,156 12,103
I NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (168,348) 184,742
CASH AND CASH EQUIVALENTS, JANUARY 1 473,518 288,776
I CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 305,170 $ 473,518
I SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Retirement of fixed assets $ $ 33,204
Fixed assets acquired from landlord $ 30,000 $
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Exhibit D-19
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I Waterford Center Shorewood Plaza Totals
2003 2002 2003 2002 2003 2002
I $ (166,963) $ (167,065) $ 227,993 $ 382,327 $ 305,170 $ 473,518
I 1,208 1,909 2,505 2,751
30,000 30,000 2,682
I 103,523 106,372 145,026 147,088 248,549 253,460
3,673 5,386 3,674 5,432 7,347 10,818
(59,767) (55,307) 407,901 536,756 593,571 743,229
I 68,199 66,134 247,983 36,232 316,182 102,366
(48,247) (43,164) (28,142) (18,365) (76,389) (61,529)
I 19,952 22,970 219,841 17,867 239,793 40,837
I $ (39,815) $ (32,337) $ 627,742 $ 554,623 $ 833,364 $ 784,066
I $ 27,691 $ 31,674 $ 69,176 $ 35,883 $ 96,867 $ 88,199
7,881 6,627 12,983 8,001 20,864 14,628
I 3,714 5,616 13,091 9,092 16,805 14,694
39,286 43,917 95,250 52,976 134,536 117,521
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30,000 30,000
I (79,101) (76,254) 502,492 501,647 668,828 666,545
I (79,101) (76,254) 532,492 501,647 698,828 666,545
$ (39,815) $ (32,337) $ 627,742 $ 554,623 $ 833,364 $ 784,066
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OPERATING REVENUE
Sales
Less cost of goods sold
Tonka Bay
2003 2002
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CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT)
YEARS ENDED DECEMBER 31,2003 AND 2002
$
GROSS PROFIT
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional services
Contracted services
Insurance
Utilities
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other income (expense)
4,381
TOTAL NONOPERATING REVENUE (EXPENSES)
4,381
INCOME BEFORE TRANSFERS
4,285
OPERATING TRANSFERS OUT
NET INCOME (LOSS)
4,285
RETAINED EARNINGS (DEFICIT), JANUARY 1
241,152
RETAINED EARNINGS (DEFICIT), DECEMBER 31
$ 245,437
-67-
$ 727,938
(539,749)
188,189
22
92,290
3,251
2,043
2,453
793
4,910
7,894
23,773
1,484
9,000
74
96
147,891
(96)
40,298
6,601
300
6,901
47,199
(15,000)
32,199
208,953
$ 241,152
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Exhibit D-20
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I Waterford Center Shorewood Plaza Totals
2003 2002 2003 2002 2003 2002
I $ 841,432 $ 792,379 $ 931,316 $ 986,874 $ 1,772,748 $ 2,507,191
(615,140) (575,759) (687,761) (714,345) (1,302,901) (1,829,853)
I 226,292 216,620 243,555 272,529 469,847 677,338
I 113,378 97,522 120,185 104,673 233,563 294,485
2,958 4,746 5,179 4,967 8,137 12,964
5,083 4,854 9,777 3,188 14,860 10,085
I 1,507 3,024 1,777 2,277 3,284 7,754
390 479 6,712 949 7,102 2,221
7,267 4,292 7,267 4,309 14,534 13,511
I 8,081 7,801 9,871 8,829 17,974 24,524
59,557 68,428 53,166 56,971 112,723 149,172
5,260 3,695 4,492 2,515 9,752 7,694
I 10,658 10,615 14,317 11,919 25,049 31,534
214,139 205,456 232,743 200,597 446,978 553,944
I 12,153 11,164 10,812 71,932 22,869 123,394
I (6,201) 4,529 12,820 8,910 13,220
19 504 504 319
I (6,182) 12,820 9,414 13,539
5,033
I 12,153 4,982 15,845 84,752 32,283 136,933
I (15,000) (15,000) (15,000) (30,000) (30,000)
(2,847) 4,982 845 69,752 2,283 106,933
I (76,254) (81,236) 501,647 431,895 666,545 559,612
$ (79,101) $ (76,254) $ 502,492 $ 501,647 $ 668,828 $ 666,545
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Exhibit D-21
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I Waterford Center Shorewood Plaza Totals
2003 2002 2003 2002 2003 2002
I $ 12,153 $ 11,164 $ 10,812 $ 71,932 $ 22,869 $ 123,394
I 19 504 504 19
5,083 4,854 9,777 3,188 14,860 10,085
I (30,000) 7,199 (27,318) 4,517
2,849 (4,633) 2,062 (39,527) 4,911 28,948
1,713 (2,205) 1,758 (1,303) 3,471 1,479
I (3,983) 21,507 33,293 17,051 8,668 39,820
1,254 361 4,982 (3,108) 6,236 (9,444)
I (1,902) 4,345 3,999 1,455 2,111 3,982
17,167 35,412 37,187 56,887 36,312 202,800
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(15,000) (15,000) (15,000) (30,000) (30,000)
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I (2,065) (181,751) (7,830) (183,816) (7,830)
7,669
I (2,065) (181,751) (7,830) (183,816) (161)
I (6,201) 5,230 12,000 9,156 12,103
102 29,211 (154,334) 46,057 (168,348) 184,742
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(167,065) (196,276) 382,327 336,270 473,518 288,776
I $ (166,963) $ (167,065) $ 227,993 $ 382,327 $ 305,170 $ 473,518
I $ $ 11,688 $ $ 8,801 $ $ 33,204
$ $ $ 30,000 $ $ 30,000 $
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets of a governmental jurisdiction, which are not accounted for in an enterprise fund. To be
classified as a fixed asset in this category, a specific piece of property must meet three attributes:
1. Tangible nature
2. A life longer than the current fiscal year
3. A significant value
INVESTMENT IN GENERAL FIXED ASSETS
General fund
Capital projects funds
$ 1,500,363
3,910,439
$ 1,500,363
3,924,152
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31,2003 AND 2002
Exhibit E-l
GENERAL FIXED ASSETS
Land
Buildings and structures
Improvements other than buildings
Furniture and equipment
2003 2002
$ 741,826 $ 741,826
1,713,882 1,713,882
l,421,103 1,409,010
1,533,991 1,559,797
$ 5,410,802 $ 5,424,515
TOTAL GENERAL FIXED ASSETS
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
$ 5,410,802
$ 5,424,515
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Buildings Improvements Furniture
and other than and
Total Land Structures Buildings Equipment
FUNCTION
General government $ 731,723 $ $ 300,000 $ 192,831 $ 238,892
Public works 2,552,883 153,500 919,581 184,703 1,295,099
Culture and recreation 2,126,196 588,326 494,301 1,043,569
TOTAL GENERAL
FIXED ASSETS $ 5,410,802 $ 741,826 $ 1,713,882 $ 1,421,103 $ 1,533,991
CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31, 2003
-72-
Exhibit E-2
CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31,2003
General
Fixed Assets
January 1 Additions
General government $ 734,107 $ 46,646
Public works 2,565,277 141,199
Culture and recreation 2,125,131 1,065
TOTAL GENERAL FIXED ASSETS $ 5,424,515 $ 188,910
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Deductions
$ 49,030
153,593
$ 202,623
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Exhibit E-3
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General I
Fixed Assets
December 31 I
$ 731,723
2,552,883 I
2,126,196
$ 5,410,802 I
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
General obligation bonds and other forms of long-term debt supported by general revenues are obligations of a governmental unit
as a whole and not its individual constituent funds. The amount of outstanding long-term indebtedness which is backed by the full
faith and credit of the government (excluding enterprise fund debt) is recorded and accounted for in a separate self-balancing
account group titled the "General Long-Term Debt Account Group." Also, this debt group includes certain liabilities not expected
to be liquidated with expendable available fmancial resources.
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 3l, 2003 AND 2002
2003
AMOUNT AVAILABLE FOR DEBT RETIREMENT
Debt service funds
$ 205,350
AMOUNTS TO BE PROVIDED FOR DEBT RETIREMENT
Future tax levies, assessments and tax increments
12,418,518
TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED FOR
DEBT RETIREMENT
$ 12,623,868
GENERAL LONG-TERM DEBT PAYABLE
Compensated absences payable
Capital lease payable
Lease revenue bonds
General obligation improvement bonds
$ 79,635
159,233
12,365,000
20,000
TOTAL GENERAL LONG-TERM DEBT PAYABLE
$ 12,623,868
-74-
Exhibit F-l
2002
$ 208,801
10,034,868
$ 10,243,669
$ 68,034
185,635
9,950,000
40,000
$ 10,243,669
Final
Interest Issue Maturity
Rates Date Date
4.00-4.45 12-01-93 02-01-04
CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS pAYABLE
DECEMBER 31,2003
GENERAL OBLIGATION IMPROVEMENT BONDS
G.O. Improvement Bonds of 1993
GENERAL OBLIGATION REVENUE BONDS
G.O. Water Revenue Bonds of 1995
G.O. Water Revenue Bonds of 1996
G.O. Refunding Bonds of 2003
4.45-4.75
4.45-5.40
1.50-3.00
TOTAL GENERAL OBLIGATION REVENUE BONDS
LEASE REVENUE BONDS
Public Safety Facility, Series 2002A
Public Safety Facility, Series 2002B
Public Safety Facility, Series 2002C
Public Safety Facility, Series 2003A
Public Safety Facility, Series 2003B
3.00-5.50
3.00-5.50
3.00-5.50
2.00-5.10
2.00-5.10
TOTAL LEASE REVENUE BONDS
TOTAL ALL BONDS
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11-01-95
11-01-96
08-01-03
09-01-02
09-01-02
09-01-02
04-15-03
04-15-03
02-01-11
02-01-12
02-01-11
02-01-23
02-01-23
02-01-23
02-01-23
02-01-23
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Exhibit F-2
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I Bonds
Authorized 12/31/2003
and Issued Redeemed Outstanding
I $ 325,000 $ 305,000 $ 20,000
I 1,920,000 895,000 1,025,000
860,000 340,000 520,000
I 815,000 815,000
3,595,000 1,235,000 2,360,000
I 3,865,000 3,865,000
4,025,000 4,025,000
I 2,060,000 2,060,000
1,195,000 1,195,000
1,220,000 1,220,000
I 12,365,000 12,365,000
I $ 16,285,000 $ 1,540,000 $ 14,745,000
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS I
DECEMBER 31, 2003
Total Bonds G.O. Improvement Bonds I
Year Principal Interest Principal Interest
2004 $ 210,000 $ 717,549 $ 20,000 $ 480 I
2005 535,000 671,957
2006 790,000 649,174
2007 795,000 621,273 I
2008 805,000 590,825
2009 815,000 558,278
2010 845,000 523,260 I
2011 850,000 486,233
2012 625,000 452,769
2013 595,000 424,045 I
2014 620,000 394,868
2015 655,000 363,606
2016 695,000 329,983 I
2017 720,000 294,245
2018 755,000 256,545
2019 800,000 216,340
2020 835,000 173,660 I
2021 880,000 127,930
2022 935,000 78,738
2023 985,000 26,694 I
TOTAL $ 14,745,000 $ 7,957,972 $ 20,000 $ 480
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Exhibit F-3
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I G.O. Revenue Bonds Lease Revenue Bonds
Principal Interest Principal Interest
I $ 190,000 $ 92,420 $ $ 624,649
180,000 83,574 355,000 588,383
335,000 73,483 455,000 575,691
I 330,000 61,723 465,000 559,550
320,000 49,585 485,000 541,240
320,000 36,988 495,000 521,290
I 320,000 23,652 525,000 499,608
305,000 10,010 545,000 476,223
60,000 1,620 565,000 451,149
595,000 424,045
I 620,000 394,868
655,000 363,606
695,000 329,983
I 720,000 294,245
755,000 256,545
800,000 216,340
I 835,000 173,660
880,000 127,930
935,000 78,738
I 985,000 26,694
$ 2,360,000 $ 433,055 $ 12,365,000 $ 7,524,437
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CITY OF SHOREWOOD, MINNESOTA Table 1
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Culture
Fiscal Total General Public Public and Misc.l Debt
Year Expenditures Government Safety Works Recreation Transfers Service
1994 $ 2,536,943 $ 755,097 $ 618,047 $ 433,699 $ 128,600 $ 601,500 $
1995 2,326,231 723,098 650,703 432,759 115,446 404,225
1996 2,479,151 782,466 689,904 472,607 109,988 424,186
1997 2,614,217 821,257 744,072 451,756 115,193 444,395 37,544
1998 2,891,689 961,340 788,253 505,240 110,287 489,025 37,544
1999 2,721,371 851,627 799,515 425,450 114,435 492,800 37,544
2000 2,921,715 989,082 827,483 436,915 135,891 494,800 37,544
2001 3,073,887 996,042 893,070 487,092 126,139 534,000 37,544
2002 3,550,223 1,013,522 1,009,079 429,185 451,793 609,100 37,544
2003 3,340,552 1,049,696 1,300,238 423,534 164,540 365,000 37,544
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CITY OF SHOREWOOD, MINNESOTA Table 2
GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE
LAST TEN FISCAL YEARS
Total
General Licenses
Fiscal Fund and Inter - Mise.!
Year Revenues Taxes Permits Governmental Fines Transfers
1994 $ 2,531,339 $ 1,487,398 $ 256,243 $ 441,040 $ 73,998 $ 272,660
1995 2,378,009 1,489,822 184,857 440,720 68,765 193,845
1996 2,457,755 1,569,653 205,459 427,468 80,826 174,349
1997 2,670,175 1,703,509 236,672 450,185 76,340 203,469
1998 2,770,825 1,776,853 223,248 532,359 73,337 165,028
1999 2,829,676 1,870,727 221,555 468,969 94,115 174,310
2000 3,104,544 1,938,705 346,086 485,046 76,483 258,224
2001 3,347,776 2,206,525 349,515 497,269 61,243 233,224
2002 3,685,133 2,658,663 229,234 171,783 89,632 535,821
2003 3,729,046 3,071,853 334,424 65,782 88,949 168,038
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CITY OF SHOREWOOD, MINNESOTA Table 3
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1) Percent
Collection Percentage Collection of Total
Fiscal Total of Current of Levy of Prior Total Collections
Year Levy Year's Levy Collected Year's Levy Collections to Levy
1994 $ 1,518,735 $ 1,505,212 99.11 % $ 13,886 $ 1,519,098 100.02 %
1995 1,518,108 1,501,389 98.90 13,999 1,515,388 99.82
1996 1,598,713 1,577,353 98.66 16,946 1,594,299 99.72
1997 1,703,016 1,683,193 98.84 19,982 1,703,175 100.01
1998 1,778,585 1,760,645 98.99 15,694 1,776,339 99.87
1999 1,860,507 1,845,191 99.18 22,439 1,867,630 100.3 8
2000 1,935,779 1,922,709 99.32 15,035 1,937,744 100.10
2001 2,208,574 2,188,665 99.10 14,813 2,203,478 99.77
2002 2,763,367 2,707,740 97.99 18,749 2,726,489 98.67
2003 3,156,847 3,131,798 99.21 23,113 3,154,911 99.94
(1) Includes state paid property tax credits.
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CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALVA TION, TAX LEVIES AND TAX CAPACITY RATES
(Shown by year of tax collectibility)
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2003 2002 2001 2000
Tax capacity $ 9,741,599 $ 8,690,552 $ 11,344,958 $ 10,346,255
Contribution to fiscal disparities pool (184,657) (171,024) (253,832) (201,693 )
Receivable from fiscal disparities pool 314,412 426,424 379,095
Tax increment
Taxable valuation/Total tax capacity $ 9,556,942 $ 8,833,940 $ 11,517,550 $ 10,523,657
Tax levies
General $ 2,851,847 $ 2,763,367 $ 2,208,574 $ 1,935,799
Debt service 305,000
Total $ 3,156,847 $ 2,763,367 $ 2,208,574 $ 1,935,799
Tax capacity rate
General 29.841 % 31.923 % 19.208 % 18.340 %
Debt service 3.191
Total 33.032 % 31.923 % 19.208 % 18.340 %
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(1) The debt service levy includes $8,508 for 1996, $8,568 for 1995 and $8,022 for 19941evied for the retirement of Storm
Sewer District No.2 improvement bonds. Storm Sewer District No.2 was established by the City of Shorewood in 1991.
This portion of the debt service tax levy is only levied within Storm Sewer District No.2 to retire the $31,000 bond issue used
to finance the improvements within the district and is not reflected in the tax rates above. Table 5 reports the tax rate of this
District separately.
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Table 4
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1999 1998 1997 1996 1995 1994
$ 9,663,252 $ 9,897,574 $ 9,901,879 $ 9,115,960 $ 8,045,468 $ 7,396,104
I (203,942) (214,901) (202,668) (178,279) (185,232) (205,973)
342,621 337,116 350,823 332,110 310,337 375,309
(312,066) (319,186) (294,512) (166,094) (22,195) (317)
I $ 9,489,865 $ 9,700,603 $ 9,755,522 $ 9,103,697 $ 8,148,378 $ 7,565,123
I $ 1,860,507 $ 1,778,585 $ 1,703,016 $ 1,573,930 $ 1,491,990 $ 1,491,888
24,783 26,118 26,847
I $ 1,860,507 $ 1,778,585 $ 1,703,016 $ 1,598,713 $ 1,518,108 $ 1,518,735
I 19.573 % 18.317 % 17.479 % 17.252 % 18.256 % 19.655 %
0.179 0.215 0.249
19.573 % 18.317 % 17.479 % 17.431 % 18.471 % 19.904 %
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF TAX CAPACITY IN 1994-2003)
Year (1)
Taxes School District Watershed District
Payable City County No. 276 No. 277 No.3 No.4
1994 19.904 % 37.441 % 77.323 % 67.785 % 0.334 % 0.707 %
1995 18.471 37.454 76.139 66.441 2.332 0.762
1996 17.431 37.270 76.340 62.418 (2) 1.533 0.864
1997 17.479 35.515 78.420 52.223 1.319 0.860
1998 18.317 38.386 76.408 59.701 0.660 0.843
1999 19.573 40.994 69.423 67.286 0.825 0.880
2000 18.340 39.655 59.565 57.711 0.525 0.866
2001 19.208 37.624 47.155 40.246 1.363 0.946
2002 31.923 50.409 20.868 25.504 2.461 1.608
2003 33.032 50.607 24.215 20.758 1.236 1.616
{l) Includes vocational school
(2) Includes market value levy of .077
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Misc.
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5.724 %
5.847
6.390
6.149
6.973
8.043
7.916
7.916
7.386
7.757
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Sewer
District
I No.2
l5.495 %
l5.353
I 13.956
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Totals
School District No. 276
Watershed
District
No.4
Sewer
District
No.2
Watershed
District
No.3
140.726 %
140.243
138.964
138.882
l40.744
138.858
126.001
112.966
112.355
115.738
Watershed
District
No.4
141.099 %
138.673
138.295
138.423
140.927
138.913
126.342
112.549
112.194
117.227
156.594 %
154.026
152.251
138.423
140.927
138.913
126.342
112.549
112.194
117.227
Table 5
School
District
No. 277
Watershed
District
No.3
131.188 %
130.545
125.042
112.685
124.037
136.721
124.147
106.057
117.683
113.39
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CITY OF SHOREWOOD, MINNESOTA Table 6
PRINCIPAL TAXPAYERS
DECEMBER 31,2003
2003 Percent
Tax of
Taxpayer Type of Business Capacity Total
Shurgard Storage Centers Inc Commercial $ 68,090 16.15 %
James C Akins Residential/Lakeshore 51,025 12.10
Minnetonka Country Club Commercial 48,850 11.58
Waterford Center LLP Commercial 39,250 9.31
Beacon Bank Commercial 39,250 9.31
Towle Real Estate Commercial 37,050 8.79
Shurgard Storage Centers Inc Residential/Commercial 35,646 8.45
Thomas J. & Cynthia J. Redmond Residential/Lakeshore 35,380 8.39
The Mary Sue Simon Qprt Residential/Lakeshore 35,190 8.35
Russell & Luaina Hagen Residential/Lakeshore 31,935 7.57
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CITY OF SHOREWOOD, MINNESOTA Table 7
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Percent
Collection Percentage Collection of Total
Fiscal Total of Current of Levy of Prior Total Collections
Year Levy Year's Levy Collected Year's Levy Collections to Levy
1994 $ 198,729 $ 185,061 93.12 % $ 6,025 $ 191,086 96.15 %
1995 170,157 159,018 93.45 12,896 171,914 101.03
1996 233,219 197,667 84.76 6,660 204,327 87.61
1997 223,274 204,178 91.45 17,545 221,723 99.31
1998 215,817 190,437 88.24 7,089 197,526 91.52
1999 185,174 172,344 93.07 41,897 214,241 115.70
2000 160,137 155,491 97.10 11,813 167,304 104.48
2001 138,271 133,808 96.78 20,195 154,003 111.3 8
2002 94,544 89,965 95.16 6,750 96,715 102.30
2003 79,327 76,286 96.17 7,399 83,685 105.49
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Table 8
CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 2003
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Market Value
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$1.031.663.400
Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
20,633,268
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Total Bonded Debt
Less, (Note B)
Improvement Bonds
Lease Revenue Bonds
General Obligation Revenue Bonds
Total Debt Applicable to Debt Limit
$ 14,745,000
(20,000 )
(12,365,000 )
(2,360,000 )
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Legal Debt Margin
$ 20.633.268
Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
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"Subdivision 1. Generally, except as otherwise provided in sections 475.51 to 475.75, no municipality, except a
school district or a city of the fIrst class, shall incur or be subject to a net debt in excess of 2.0 percent of the market I
value of taxable property in the municipality."
Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid)
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"Subdivision 2. Not included in net debt of municipality for purpose of any statutory or charter limitation.
Obligations issued here under may be authorized by resolution of the governing body without authorization by the
electors, and shall not be included in the net debt of the municipality for the purpose of any statutory or charter
limitation on indebtedness."
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M.S.A. Section 475.51 (DefInitions:)
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"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the
principal of the following:
(1)
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Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied
upon property specially benefIted thereby, including those which are general obligations of the municipality issuing them.
if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments.
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(2)
(3)
Warrants or orders having no defInite or fIXed maturity.
Obligations payable wholly from the income from revenue-producing conveniences.
(4) Obligations issued to create or maintain a permanent improvement revolving fund.
(5)
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(6)
Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or
power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be
derived.
Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other I
than those deductible under this subdivision.
(7)
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All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in
computing the net debt of the municipality."
*
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After contribution and distribution from "fIscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24.
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CITY OF SHOREWOOD, MINNESOTA
RATIO OF NET BONDED DEBT TO
ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Table 9
Ratio of
Less Net Bonded
Amount Debt to
(1) Reserved Assessed Net
Gross for Net Va1ues/ Bonded
Fiscal Estimated Tax Bonded Debt Bonded Tax Debt
Year Population Capacity Debt Service Debt Capacity Per Capita
1994 6,430 $ 7,565,123 $ 1,850,500 $ 1,485,579 $ 364,921 .0482: 1 $ 56.75
1995 6,614 8,148,378 3,524,500 1,419,732 2,104,768 .2583: 1 318.23
1996 6,794 9,103,697 3,602,500 503,635 3,098,865 .3404: 1 456.12
1997 6,889 9,755,522 3,335,000 478,192 2,856,808 .2928:1 414.69
1998 6,955 9,700,603 3,015,000 424,978 2,590,022 .2670: 1 372.40
1999 7,008 9,489,865 2,700,000 376,643 2,323,357 .2448:1 331.53
2000 7,400 10,218,346 2,380,000 303,858 2,076,142 .2032: 1 280.55
2001 7,400 11,344,958 2,070,000 231,421 1,838,579 .1621:1 248.46
2002 7,400 8,690,552 11,720,000 208,801 11,511,199 1.325:1 1,555.57
2003 7,520 9,556,942 14,745,000 205,350 14,539,650 1.339:1 1,933.46
(1) Gross bonded debt amounts in this table are general obligation special assessment bonds and revenue bonds
whose principal source of funding will be sources other than general property taxes.
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CITY OF SHOREWOOD, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES*
LAST TEN FISCAL YEARS
Table 10
Total Percent of
Total General Debt Service
Fiscal Debt Fund to General
Year Principal Interest Service Expenditures * Expenditures
1994 $ 681,000 (2) $ 120,862 $ 801,862 $ 2,536,943 31.61 %
1995 231,000 99,823 330,823 2,326,231 14.22
1996 767,000 (3) 72,461 839,461 2,479,151 33.86
1997 142,500 39,921 182,421 2,614,217 6.98
1998 135,000 33,099 168,099 2,891,689 5.81
1999 135,000 26,645 161,645 2,721,371 5.93
2000 130,000 18,588 148,588 2,921,715 5.09
2001 125,000 11,777 136,777 3,073,887 4.45
2002 115,000 6,133 121,133 3,550,223 3.41
2003 20,000 1,430 21,430 3,340,552 0.64
(1) Excludes G.O. Bonds reported in Enterprise Funds
(2) Principal included bonds called in 1994
(3) Principal included bonds called in 1996
* Includes General Fund only
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2003
Table 11
Gross Amount
Bonded of
Debt Used Percentage Net Debt
For Net Debt Net Applicable to Applicable
Calculation Debt District to District
Overlapping Debt
Hennepin County $ 346,355,000 $ 341,228,971 1.12 % $ 3,821,764
Hennepin Suburban Park District 13,940,000 11,615,904 1.46 169,592
School District #276 44,995,000 40,413,310 19.72 7,969,505
School District #277 22,175,000 12,085,559 1.93 233,251
Metropolitan Council 191,975,000 128,486,881 0.90 1,156,382
Hennepin County RR Authority 48,555,000 48,112,294 1.12 538,858
Total Overlapping Debt $ 667,995,000 $ 581,942,919 2.39 % $ 13,889,352
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
WATER FUND
LAST TEN FISCAL YEARS
(1) Net Ratio of Net
Fiscal Gross (2) Revenue Debt Service Revenue to
Year Revenue Expenses Available Principal Interest Total Debt Service
1994 $ 262,892 $ 159,179 $ 103,713 $ 15,000 $ 4,035 $ 19,035 5.449:1
1995 198,566 166,970 31,596 15,000 3,486 18,486 1.710:1
1996 272,678 170,485 102,193 15,000 74,473 89,473 1.142:1
1997 252,866 180,601 72,265 125,000 120,737 245,737 .2940: 1
1998 311 ,925 179,914 132,011 185,000 125,085 310,085 .4257:1
1999 454,227 201,325 252,902 180,000 117,642 297,642 .8497:1
2000 465,548 186,696 278,852 190,000 109,736 299,736 .9303:1
2001 398,555 209,332 189,223 185,000 99,739 284,739 .6646:1
2002 287,465 236,575 50,890 185,000 93,280 278,280 .1828:1
2003 539,287 192,689 346,598 185,000 82,904 267,904 1.2937:1
(1) Including interest and other income
(2) Excluding depreciation and interest on bonds
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
Table 13
(1)
Commercial (1)
Construction Residential Construction (2)
Fiscal Number Property Value
Year Value of Units Value Commercial Residential Total
1994 $ 960,000 86 $ 16,530,925 $ 11,338,700 $ 413,780,300 $ 425,119,000
1995 2,030,000 40 10,137,210 9,793,000 453,616,100 463,409,100
1996 1,350,000 37 9,393,436 10,562,200 517,983,900 528,546,100
1997 695,000 41 11,825,463 13,034,900 542,674,600 555,709,500
1998 1,317,000 35 9,563,920 14,572,900 580,878,400 595,451,300
1999 39 10,673,841 18,097,200 607,425,000 625,522,200
2000 428,000 71 12,151,100 17,487,100 668,078,300 685,565,400
2001 34 11,451,098 21,243,000 774,394,300 795,637,300
2002 1,335,000 10 3,983,587 23,438,500 891,331,300 914,769,800
2003 4,640,000 27 10,607,279 26,475,900 1,006,984,300 1,033,460,200
(1) City Planning and Inspection Department
(2) County Assessor's Office
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Year of incorporation
Form of govemment
Fiscal year begins
Area of City
Population
2000 Census
1990 Census
1980 Census
1970 Census
Miles of streets and alleys
City streets
Municipal state aid streets
County roads
State highway
Sewer
Lift stations
Sewer rates - residential
Miles of sewer lines
Number of street lights
Building permits issued in 2003
Number of permits
Value
CITY OF SHOREWOOD, MINNESOTA
MISCELLANEOUS STATISTICS
DECEMBER 31, 2003
Table 14
1956
Council-Administrator
Adopted May 14,1956
January 1
6.0 square miles
7,400
5,917
4,646
4,223
41.0
9.8
1.7
2.7
14
$70.00/quarter
56.2
177
921
$ 24,453,884
Fire protection: Contracted services with Mound and Excelsior Fire District
Police protection: Contracted services with South Lake Minnetonka Police Department
Parks
Number
Acres
Water
Number of connections
Average daily consumption
Miles of water main
Daily capacity - gallons
Number of fire hydrants
Water rate
Employees
Regular
Part-time/seasonal
Total
Elections
Registered voters last election
Number of votes cast last election
Percentage of registered voters voting
5
95.8
1,225
403,000 gallons
15.2
4,680,000 gallons
165
$2.95/1000 gallons
22
23
45
4,981
4,521
90.8%
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