annual financial report
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CITY OF SHOREWOOD, MINNESOTA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
for the
YEAR ENDED
DECEMBER 31, 1996
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CITY Or SHOREWPOD, (MINNESOTA
COMPREHENSIVE
ANNUAL FINAN€IAL/ REPORT
FOR THE YEAR ENDED
DECEMBER. 31, 1.996
JAMES C. HURM, lefTY ADMINIsTRATOIt
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RE~QRT PREi>ARED,BY: D~PARTMENT"OF FINANCE
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ALAN J.. BOLEK, FINANCE D~RECTORtTR~ASURER
---,
MEMBER' of GOVERNMENT f'INANCE /OFFlCERS\ASSoCIATION,
OF THE UNITED STATES AND CANADA .!
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1996
I. INTRODUCTORY SECTION
Elected and Appointed Officials
Organizational Chart
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
II. FINANCIAL SECTION
Independent Auditor's Report
General Pw:pose Financial Statements
Exhibit
Page No.
I - VII
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenue, Expenditures and Changes in Fund Balance -
All Governmental Fund Types 2
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual- General Fund 3
Combined Statement of Revenue, Expenses and Changes in Retained Earnings -
All Proprietary Fund Types 4
Combined Statement of Cash Flows - All Proprietary Fund Types 5
Notes to Financial Statements
Combining and Individual Fund and Account Group Financial Statements and Schedules
General Fund
Comparative Balance Sheets
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual
Debt Service Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and Changes in Fund Balance
Capital Projects Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and Changes in Fund Balance
Enterprise Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenses and Changes in Retained Earnings
CombiningStatememofCashFwws
Water Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
(Deficit)
Comparative Statements of Cash Flows
Sewer Fund
Comparative Balance Sheets
Comparative Statements of Revenue, Expenses and Changes in Retained Earnings
Comparative Statements of Cash Flows
2-3
4-5
6
7
8
9 -23
A-I 24
A-2 25 - 29
B-1 30 - 31
B-2 32 - 33
C-l 34 - 37
C-2 38 - 41
D-l 42 - 43
D-2 44 - 45
D-3 46 - 47
D-4 48
D-5 49
D-6 50
D-7 51
D-8 52
D-9 53
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CITY OF SHOREWOOD, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 1996
Recycling Fund
Comparative Balance Sheet
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 Sheet
Combining Schedules of Revenue, Expenses and Changes in Retained Earnings
Combining Schedules of Cash Flows
Agency Fund
Statement of Changes in Assets and Liabilities
General Fixed Asset Account Group
Comparative Schedule 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
ComparatiwState~mmGe~ralLo~~rmD~
Schedule of Bonds Payable
Schedule of Debt Service Requirements
ill. STATISTICAL SECTION
General Fund Expenditures and Other Uses by Function
General Fund Revenue and Other Sources by Source
Property Tax Levies and Collections
Assessed Valuation, Tax Levies and Mill Rates
Property Tax Mill RateslTax Capacity Rates - Direct and Overlapping Governments
Principal Taxpayers
Special Assessment Levies and Collections
Computation of Legal Debt Margin
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage
Property Value, Construction and Bank Deposits
Miscellaneous Statistics
Exhibit Page No.
D-I0 54
D-ll 55
D-12 56
D-13 57
D-14 58
D-15 59
D-16 60
D-17 61
D-18 62
D-19 63 - 64
D-20 65 - 66
D-21 67 - 68
E-l 69
F-l 70
F-2 71
F-3 72
G-l 73
H-l 74 - 75
1-1 76 - 77
1 78
2 79
3 80
4 81 - 82
5 83 -84
6 85
7 86
8 87
9 88
10 89
11 90
12 91
13 92 - 93
14 94
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ORGANIZATIONAL CHART - CITY OF SHOREWOOD
I VOTERS I
I CITY ATTORNEY ~ ~ - -
,
CITY COUNCIL
BOARDS &
COMMISSIONS
CITY ADMINISTRATOR
- PLANNING COMMISSION
-PARKCOMMISSION.
- SNOWMOBILE TASK FORCE
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LIQUOR ENGINEERING FINANCE ADMINISTRATION PLANNING PUBLIC PUBLIC SAFETY
& ZONING WORKS (CONTRACT)
- Off-Sale - Engineering Svcs. - Personnel - General Government - Planning - Building & Grounds - Police - 4-City Joint
Retail - Project Mgmt. - Accounting - Licensing - Zoning - Recycling (Contract) Services *
- Payroll - Elections Administration - Tree Maintenance - Patrol
- Investments - Records - Property - Park Maintenance - Disaster
- Utility Billing - Legal Publications Records - Street Mainenance Preparedness
- Accts. Payable - Public Information - Inspection - Equipment Mainrenance - Investigation
- Accts. Recble. - Recreation Programs - Stormwater System - Public Service
- Special - Park Planning - Street Lighting - Fire - Excelsior!
Assessments (Contract) - SanitationlWeeds Mound
- Budgeting - Assessor (Contract) - Janitor Services - Fire prevention!
-MIS - Cable TV - (Contract) firefighting
- Purchasing Franchise - Utility Maintenance - Animal Control -
(Contract) Chanhassen
* Mayor is City's representative on joint governing board.
December, 1996
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. MAYOR
Tom Dahlberg
COUNCIL
Kristi Stover
Jennifer McCl'lrty
Jerry O'Neill
John Garfunkel
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD -SHOREWOOD, MINNESOTA 55331-8927 - (~12), 474-3236
F~X(612) 474:0128. www.state.netlshorewood.cityhall@shorewood.state.net
,.. /
May 8, 1991
Honorab~Mayor and Members of the City Council
City of Shorewood,. Minnesota
Councilmembers:
The Compr:ehensive AmJ.ua1 Financi~IReport of the (City of Shorewood, Minnesota for the fiscal yearendtd
December 31,1996, is hereby submitted,. Responsibility for both the acc~y of the data, anath~Olllpleteness and
fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge; andbeli~f,
the enclosed <lata is accurate in all material respects and is reported ina mannerdesignatedtopr~ fairly.~
fmancial.position and results of Operati~1lS of the various .funds andaccoUJ;lt groups. of the City. All disclosures
necessary to enable the reader to gain an understanding of die City's finanC(ialactivities have bec;n included. .
The Comprehensive Annual Financial Report, is presented m three sectiOns:. Introductory; Financial and .Statisti~.
The lntroductorysection includes this tlJD,.mttat letter, theCity's..organi7.lWonalchart(and a list of City oftic~.
The Financial section includes the generalP\Jl'Wscfl118J1()ial statements and the combining and individual fund and
a~o~tgroup financial s~ents ~d$chedules, along with the auditor's report on the fmaucialstatementS.The
Statistica1section includes selected(fmancial and demogr:aphic information, 'g~neraIJy pr~e~ on a multi-yea!'
basis.
The organization, form and contents of this report were prepared in acC6rdanceWith the standards prescribed by the
Govenunental Accounting Standards Board, the Gqvernment Finance Officers Association <if the United. States and
Canada, the American Institute 'Of Certifitd Public Accountants;. and the Minnesota State Auditor's OffICe.
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This report includes all funds'and account groupS of the City. \he various fund ~.included ~e governmental,
proprietary and fiduciary. Within the -accoontgroups are general fixed assets and general long-term debt. The City
provides its residents8J;l.d businesses with a tull ~ge of municipal. services consisting of police,. fire, public works,
parks and general ~is~tive services. The City also operates five enter:prises: a water.utility, sewer;utjlity,
recycling utility, stormwater management utility and an. off-sale liquor operation, consisting6f three $torC sites,./
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The criteria used in determining the component units.to be'included with the City as.pat(ofijts reporting entity is
~nsiste~t with those required by the G6vernme~ta1 ACCOUJ;lting Stapdards.Board.StatementNo. 14, "The Financial
Reporting Entity". Based on these criteria, all fUnds and accopnt groups of the City are .incl1idedin this report, and
no component units are reported herein.
A Residential Community OfJ Lake Minoetonk;Ys South Shore
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ECONOMIC CONDITION AND OUTLOOK
The City of Shorewood is a suburb of the City of Minneapolis and is .located 25 mtles southwest of.the central
business district on the sou.thern sho~/of Lake Minnetonka. The City is predominantly a residentialc~uni#
with limited commercial businesses and two commercial shopping malls. lJte City is 6 square miles in area and has
an estimated population of6,794.
Whil~ tlie City h~ experienced an acCelerat~d rate of' growth in residential development during, the'" J980's, the
growth rate, fl.as slowed in the 1990'$. The City will continue to experience growth in ~fs residential base in the
future, but' because of the limited/availability of large tracts of land,' this will come at a reduced rate and ,likely will
be smidler developmellts than itt the past. .
MAJOR, INITIATIVES
FINANCIAL AND MANAGEMENT EMPHASIS
Emphasis on GoV'trna.,ce
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The City Council in its leadership role is effectively, establishing a' focus for city government in Shorewood. The
Council has adopted a strong set; of values by/which decisions are to be made. It has adop~ a Statement of
Purpose and established ove~lIgoals and expectations for the City. It has identified issues facing the City aQd
prioritized them so that the staff can efficiently and effectively allocate time and resources.
Emphasis on System ImprovelDeIlts
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The City Council has adopted an open government policy and/~ implementing it by televisfu~ City Council
m~gs, by improving ci~n news~tters, and by directing City staff to improye c:ommunication to those residents
affected by City activities projects. A series of neighborhood meetings on/the five-year Capital/Improvement
Program gives citiZens an opportunity for one on one discuSsions with policy makers and for meaningtul input On
plans for ttte next five yelJfS.
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The City Council recognize{ that its work consists of more 'than responding tocitize~ requests and adopting an
annual bu~get. 'The Pity Council's calendar consists of three phases. The frrst phase isPlannin" Which includes
employee and systems evaluations, review of the previo~ years w()rk plan, review of the City's\Comprehensive
Plan Executive S~ary, review of the statements of Purpose aJ;I.d Values, and identification and prioritization of
issues for th~ next twelve and twenty-four montbs./ .'.
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The .sec:ondphase is that of Programming. :Bach year the five-year Capijallmprovement Progr'amis revic;wtd and
updated based upon, priorities established in phase one. Any changes. to the COmprehensive Plan are m~ based
upon the phase C)ne decisions.
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The third phase is Budgeting. The operating budget is establi$hedbased on d~isions made in the frrst two phases,
A.. budget format is being utilized which prowdes information and 'analytical data. to ttte City Council and other
readers. ,It dermes 'departmental missions and,sets objectives for the budget year. In addition, it measures services
providtdand identifies the net affect each departmental budget has on property taxes. A .surv~y has been conducttd
in each ofthela'stfour years to measute citizen satisfaction with city services with results incor:porated in the budget
as specific objecti\fes. '
Emphasis on Ptlbli~/Improvements
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. The, City is continuing. to plan for and make public' improveQlents in a number. of areas. Major sections of the
Comprehensive Plan were updated and items in that plan are bemg implemented. . .
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The Stormwater Management Utility is a funding mechanism for small drainage improvement projects and for the
City's share of major drainage projects. A number of small projects were undertaken in 1996. The fund had
retained earnings of $205,348 at the end of 1996, which will be used for stormwater planning and future drainage
projects.
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The City was the "lead entity" in construction of the Southshore Senior Community Center. This project was
undertaken jointly by five cities along the south shore of Lake Minnetonka and is scheduled to be open by June of
1997.
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The City continued it's park and trail improvement program in 1996. The City made improvements to several parks
during the year. All parks now have new playground equipment with the installation of equipment in Badger Park
in 1996. The Badger Park football field was realigned and crowned during the Senior Community Center
construction project. A volleyball court was built in Freeman Park.
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The water system expansion program continued in 1996 with the implementation of the second year of a 20 year
plan. Three watermain installation projects were undertaken and a new water tower on the Minnewashta
Elementary School property was completed. The City of Victoria assisted in the financing of the tower, as it will
serve as a backup source of water for their City in the future.
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Emphasis on Efficiently, Effectively Meeting Service Needs
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As one of fourteen Lake Minnetonka Area municipalities, the City of Shorewood is involved in many contractual
arrangements with other jurisdictions and private enterprises, to deliver municipal services to residents of the City.
the City of Shorewood is committed to working cooperatively with area governmental jurisdictions to carefully
consider optional methods to effectively deliver public services as efficiently as possible. The Shorewood City
Administrator again in 1996 served as Chair of the Steering Committee of the Lake Minnetonka Area Cooperative
Cities Group.
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FINANCIAL INFORMATION
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INTERNAL CONTROLS
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Management of the City is responsible for establishing and maintaining an internal control structure in the
accounting system designed to ensure that the assets of the City are protected from loss, theft or misuse and to
ensure that fair, reliable and accurate accounting data is compiled to allow for the preparation of fmancial
statements in conformity with generally accepted accounting principles. The internal control structure is designed
to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: 1) the cost of a control should not exceed the benefits; 2) the valuation of costs and
benefits require estimates and judgments by management. As part of the City's annual audit, the internal control
system is evaluated to the extent necessary for audit purposes and changes are recommended when needed.
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BUDGETING CONTROLS
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The City maintains budgetary controls to ensure compliance with legal proVISions embodied in the annual
appropriated budget approved by the City Council. Activities of the general fund are included in the annual
appropriated budget. The legal level of budgetary control is established at the department level, but management
control is exercised at the line item level.
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As demonstrated by the statements and schedules included in the fmancial section of this report, the City continues
to meet its responsibility for sound financial management.
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GENERAL GOVERNMENT FUNCTIONS
The following schedule presents a summary of General Fund and Debt Service Fund revenues for the fiscal year
ended December 31, 1996 and the amount of increases or decreases in relation to the prior year's revenues.
INCREASE
REVENUES AND OTHER %OF (DECREASE)
FINANCING SOURCES AMOUNT TOTAL FROM 1995
General Property Taxes $ 1,754,166 62.17% $ 233,736
Licenses and Permits 205,459 7.28% 20,602
Intergovernmental 427,468 15.15% (13,587)
Charges for Services 45,245 1.60% 24,740
Fines and Forfeitures 80,826 2.87% 12,061
Special Assessments 145,806 5.17% (25,597)
Interest on Investments 117,640 4.17% (30,276)
Miscellaneous 33,393 1.18% (24,660)
Operating Transfers In 11 ,450 0.41% (18,550)
TOTAL $ 2,821,453 100.00% $ 178,469
The major increase in revenue for 1996 was in the area of property taxes. This was the first year in the previous
four years in which the property tax levy was increased. Although the levy increased, the City's tax rate decreased
by 5.64% from 1995. Most of the increased tax revenue was generated by new development. In addition, further
development within the Waterford tax increment district increased the amount of tax increments generated during
1996. The increments will be used to retire the revenue bond debt incurred for improvements within the tax
increment district. Building permit revenue exceeded the budget for the year with the continued development of the
Heritage Addition and the Waterford Court area. Charges for service increased in 1996 primarily due to
engineering services which were billed out during the year for project-related expenses. The addition of a full-time
traffic control officer in 1995 contributed to an increase in fmes and forfeiture revenue over last year.
Intergovernmental revenues decreased in 1996 due to a cutback in HACA aid by the state. Together, general
property taxes and intergovernmental revenue account for 77.32% of total revenue. Aside from watermain
extensions, which are accounted for in the Water Fund, there have been no new special assessments projects in the
last several years; thus, the amount of special assessments collected is decreasing each year. Operating transfers in
decreased from the previous year as budgeted transfers from the municipal liquor operation were not made
primarily due to operating losses in 1995 and the need for working capital in the liquor fund. Investment income
decreased in 1996 due to lower interest rates and, with the prepayment of debt issues, lower available cash balances.
The following table presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year
ended December 31, 1996 and the amount of increases or decreases in relation to the prior year's expenditures.
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EXPENDITURES AND
OTHER USES
AMOUNT
%OF
TOTAL
INCREASE
(DECREASE)
FROM 1995
CURRENT:
General Government
Public Safety
Public Works
Parks and Recreation
CAPITAL OUTLAY
DEBT SERVICE:
Principal
Interest
OPERATING TRANSFERS
$
767,392 20.90% $ 44,294
689,904 18.79% 39,201
472,607 12.87% 39,848
109,249 2.97% (6,197)
15,813 0.43% 15,813
887,000 24.15% 656,000
145,419 3.96% 45,596
585,136 15.93% 180,911
3,672,520 100.00% $ 1,015,466
TOTAL
$
Overall expenditures increased significantly from 1995 to 1996 primarily due to debt service and operating transfers
out. The cash balance in the debt service fund for Shorewood Oaks bond issue was sufficient to fmance the early
retirement of the issue and, subsequently, the remaining outstanding bonds were called in February, 1996. This
caused a one year increase in debt service expenditures. Operating transfers increased due to additional efforts in
capital improvement fmancing area, and to the closing of the Shorewood Oaks debt service fund. The City Council
has continued its plan to accumulate resources for future capital equipment and improvement projects. These
amounts were transferred to various capital projects funds and will be applied to future equipment acquisitions and
capital improvements.
General government expenditures increased in 1996 with the installation of a new telephone and voice messaging
system and additional computer purchases. Public safety expenditures increased due to growth, with Shorewood
responsible for a larger portion of police and fire contracts, and for a full-time traffic control officer. A federal
Cops Fast grant received by the South Lake Minnetonka Public Safety Department in 1995 subsidized 50% of the
traffic officer's salary in 1996. This percentage will decrease by 25% per year over the next two years. Public
Works expenditures also increased in 1996 due to personnel costs, supplies for street repairs, and snow and ice
control during a heavier-than-usual snow season. Park and recreation expenditures were less than in 1996, reflecting
lower maintenance and park planning costs.
GENERAL FUND BALANCE
The General Fund balance as of December 31, 1996 is $1,522,952, a decrease of $21,396 from 1995. This
represents a 1.39% reduction in the fund balance. The City Council had a planned reduction of the General Fund
balance of $90,000 built into its 1996 budget. Economic conditions during the year caused larger than expected
revenues, and employee awareness of budgetary constraints resulted in lower expenditures, which, in turn, resulted
in favorable budget variances for both revenue and expenditures Therefore, the reduction of the fund balance was
less than planned. The fund balance is designated for working capital requirements through the first six months of
the year. It is important for the City to maintain an adequate fund balance as a reserve to meet expenditures in the
General Fund until property tax proceeds are received in July. The fund balance now stands at 60.5% of the current
year budget. The policy of the City is to maintain a fund balance at 50% of the current budget. As the City
Council's intention is to manage the fund balance at this level, a portion of the fund balance has been budgeted in
1997 to lower the property tax levy. This will reduce the fund balance to $1,462,952, or 57.8% of the 1997 budget,
which still exceeds acceptable levels.
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ENTERPRISE OPERATION
The City's enterprise fund activities for 1996 are summarized as follows:
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OPERATING
REVENUES
OPERATING
EXPENSES
OPERATING
INCOME (LOSS)
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Water
Sewer
Recycling
Stormwater
Liquor - Tonka Bay
- Store I
- Store II
$
272,678
719,448
70,535
44,491
97,788
104,796
139,470
$
251,134
738,100
70,945
15,033
90,743
163,789
120,344
$
21,544
(18,652)
(410)
29,458
7,045
(58,993)
19,126
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Generally accepted accounting principles require the depreciation of contributed assets, which results in net losses in
some cases. However, past and present City fmancial practice does not include the recovery of such depreciation in
the setting of utility rates, which, in effect, would recover that cost a second time. The City's utility rate setting is
done with reference to the working capital of the fund and assumes continued customer contributions through
special assessments.
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DEBT ADMINISTRATION
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As of December 31, 1996, the City's debt outstanding totaled $4,402,500. Of this total, $815,000 were general
obligation special assessment bonds issued to fmance the construction of sanitary sewer, street, water and storm
sewer improvements. The City issued $860,000 in general obligation water revenue bonds in 1996 to finance water
system extensions and improvements. Total outstanding general obligation water revenue bonds at year end is
$2,780,000. The bonds will be repaid from special assessments on affected properties and from Water Fund
revenues. A general obligation storm sewer improvement bond issued for storm sewer improvements within a
special storm drainage district has $7,500 outstanding at year end. The repayment of these bonds will be provided
through an ad valorem tax levied against properties within the storm drainage district.
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Tax increment revenue bonds of $920,000 were issued for construction of public improvements in the Waterford
commercial development. These bonds were sold directly to the developer. As the developer has direct control
over the pace of development, retirement of the debt was to be made on a "pay-as-you-go" basis from tax
increments generated by the development. Because these revenue bonds are not backed by the full faith and credit
of the City, in the absence of tax increments from Tax Increment Financing District No.1, the City has no
obligation to repay the bonds. The first year tax increments were received was 1994, when $264 in increments was
collected. The City retired $120,000 of this issue in 1996, leaving an outstanding balance at year end of $800,00.
The District will expire in April, 2000.
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The City's bond rating as rated by Moody's Investor Service is "AI" on general obligation bond issues. Reasons
cited by Moody's for this rating include the development and implementation of a five-year capital improvement
plan, low outstanding debt, sound fmancial management, and anticipated maintenance of low debt ratios by the
City.
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CASH MANAGEMENT
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The City of Shorewood subscribes to the "pooled cash" concept of investing which means that all funds with cash
balances participate in an investment pool. This permits some funds to be overdrawn and other funds to show
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positive cash balances, with the City overall maintaining a positive cash balance. This pooled cash concept provides
for investing of greater amounts of money at more favorable rates. Interest earnings are then allocated to the
participating funds. During 1996, the City of Shore wood earned $368,378 in interest revenue.
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RISK MANAGEMENT
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The City of Shorewood's worker's compensation insurance and its general property and liability coverage are
provided through the League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT worker's compensation
program is a joint self-insurance plan designed to lower and stabilize cities worker's compensation costs and to
assure that cities have a source of coverage available.
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Each participating city deposits with the LMCIT its worker's compensation deposit premium for the policy year.
The deposit premium is calculated using standard manual rates with the applicable volume discounts and experience
modifIcation factor. From these deposits, LMCIT purchases reinsurance to protect the program from catastrophic
and abnormal payment claims. The balance of the deposits and reserves are invested, with the earnings accruing to
the benefIt of all participants. LMCIT's reserves and rates are reviewed annually by an actuary to help assure that
the program remains fmancially strong.
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OTlIER INFORMATION
INDEPENDENT AUDIT
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Minnesota State Statutes require an annual audit of the City's accounts by the Minnesota State Auditor or by
independent certifIed public accountants. The auditor's report on the general purpose fmancial statements and
schedules is included in the fmancial section of this report.
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CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
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The Government Finance Officers Association of the United States and Canada (GFOA) awarded a CertifIcate of
Achievement for Excellence in Financial Reporting to the City of Shorewood for its comprehensive annual
financial report for the fIscal year ended December 31, 1995.
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In order to be awarded the CertifIcate of Achievement, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such
reports must satisfy both generally accepted accounting principles and applicable legal requirements.
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A CertifIcate of Achievement is valid for a period of one year only. We believe our current report continues to
conform to the CertifIcate of Achievement program requirements, and we are submitting it to GFOA to determine
its eligibility for another certifIcate.
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ACKNOWLEDGMENTS
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We would like to acknowledge the efforts of the city staff, especially the Finance Department staff, and the City's
independent auditor, without whose assistance and cooperation the timely preparation of the Comprehensive Annual
Financial Report would not have been possible.
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Respectfully Submitted,
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James C. Hurm
City Administrator
Alan J. Rolek
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, 1995
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.
I2IL !it-'
Jlfh/~
Executive Director
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CERTIFIED PUBLIC ACCOUNTANTS
AND CoNSULTANTS
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INDEPENDENT AUDITOR'S REPORT
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Honorable Mayor and City Council
City of Shorewood, Minnesota
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We have audited the accompanying general purpose fmancial statements of the City of Shore wood, Minnesota, as of
and for the year ended December 31, 1996 as listed in the table of contents. These general purpose fmancial
statements are the responsibility of the City of Shorewood, Minnesota's management. Our responsibility is to
express an opinion on these general purpose fmancial statements based on our audit.
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We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the general purpose fmancial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall general purpose fmancial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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In our opinion, the general purpose fmancial statements referred to above present fairly, in all material respects, the
fmancial position of the City of Shorewood, Minnesota at December 31, 1996 and the results of its operations and
cash flows of the Proprietary Fund Type for the year then ended, in conformity with generally accepted accounting
principles.
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In accordance with Government Auditing Standards we have also issued a report dated March 13, 1997 on our
consideration of the City's internal control structure and a report dated March 13, 1997 on its compliance with laws
and regulations.
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Our audit was conducted for the purpose of forming an opinion on the general purpose fmancial statements taken as
a whole. The combining and individual fund financial statements listed in the table of contents are presented for the
purpose of additional analysis and are not a required part of the general purpose fmancial statements of the City of
Shorewood, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the
general purpose fmancial statements and, in our opinion, is fairly stated in all material respects in relation to the
general purpose fmancial statements taken as a whole.
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March 13, 1997
Minneapolis, Minnesota
~~1~
(
ABDO, ABDO & EICK
Certified Public Accountants
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Member of American Institute of Certified Public Accountants Private Companies Practice Section
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U5 EAST HICKORY STREET, SUITE 302
P.O. BOX 3166
MANKA TO, MINNESOTA 56002.3166
(507) 625.2n7
FAX (507) 388-9139
204 EAST PEARL STREET
P.O. BOX 345
OWATONNA, MINNESOTA 55060.0345
(507) 451-9136
FAX (507) 451-0794
1060 NOlITHLAND PLAZA
3800 WEST 80TH STREET
MINNEAPOLIS, MINNESOTA 55431
(612) 835.9090
FAX (612) 896.3620
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CI1\YOF SHOREW()OJ),MINNESOTA
\1
GENERAL PURPOSF.;FIrl(A.NCIAL STATEMENTS
~ "\
i i.' / ,'.\
The general/purpose financial statemeI).tS and notes to the. (mallcial>state~nts .are .intended to
provide an 6verview 8Qd broad perspective lof the City's financial position an~operations. ~..
statements present a summary set ofinfotn;lation needed to control and analyze current operations :'
t() determine ~p1iance with legal and ~udgetary limitations and to ~sist intin.ancial planning.
"
The f~llowing general purpose flnancialstatements. are pre~nted:
Combined Balance Sheet 0;.. All Fund Types and Account .<Jroups
Combined Statement of Revenu~, ~xpenditures and Changes in Fun~ Balance - All
Governmental Fund Types1';
Statement ofRevent1e, ExpendimresandChanges in fund Balance -Budget and Actual -
General Fund. '. ". .
'. .. """: .i"--..' . \
Combined! Statem~nt of Revenue, Expenses andCh~ges in Retained Eanlings - All
~roprietary Fund'fYpes / /. /. ,
Combined Statement of Cash Flows/- All Proprietary Fund Types
25 150
8160
13 985
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CITY OF SHOREWOOD, MINNESOTA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1996
ASSETS AND OTHER DEBITS
ASSETS
Cash and temporary investments
Investments for deferred compensation
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Note receivable
Due from other funds
Inventories, at cost
Prepaid items
Fixed assets, net
Bond discount, net
OTHER DEBITS
Amounts available in debt service funds
Amounts to be provided for debt retirement
Governmental Fund Types
Debt Capital
General Service Projects
$1 571 287 $492891 $2 026 275
27 898 6517 32 736
44 726 3655
20339 8887
1675 398 674 8161
13 985
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, EQUITY (DEFICIT) AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Refundable deposits payable
Deferred revenue
Due to other funds
Lease purchase payable
General obligation bonds payable
Tax increment bonds payable
General Obligation revenue bonds payable
Deferred compensation benefits payable
$1665925 $901 737 $2090044
$ 58 596 $
22319
31 038
31 020 398 102
$ 97 204
TOTAL LIABILITIES
142973 398 102
144 499
EQUITY (DEFICIT) AND OTHER CREDITS
Investment in general fixed assets
Contributed capital
Retained earnings
Unreserved
Fund balance (deficit)
Reserved
Unreserved
Designated
Undesignated
TOTAL EQUITY (DEFICIT) AND OTHER CREDITS
TOTAL LIABILITIES, EQUITY (DEFICIT) AND
OTHER CREDITS
503635
1 522 952 1 971 530
05 985)
1 522 952 503 635 1 945 545
$1 665925 $901 737 $2 090 044
See Notes to Financial Statements.
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I Exhibit 1
Proprietary Fiduciary Totals
Fund Type Fund Type Account Groups (Memorandum Only)
I General
General Long-term
Enter:prise Agency Fixed Assets Debt 1996 1995
I $ 2 393 135 $ $ $ $ 6 483 588 $ 7221436
230 140 230 140 187409
36219 103 370 203 018
I 470 48 851 47498
246 279 275 505 262 523
942 368 I 350 878 1312298
I 232 500 232 500
13 985 119 928
281 738 281 738 257447
17090 17090 17737
I 8734933 4 284 453 13 019386 10 777 478
21 489 21 489 11 799
503 635 503 635 1419732
I 1 459 209 I 459 209 1 111 631
$12 906 221 $ 230 140 $ 4 284 453 $1 962844 $24 041 364 $22 949 934
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$ 207 929 $ $ $ $ 363 729 $ 358 553
I 7512 29 344 59 175 41 112
56 188 68 710
437 282 545 595
13 985 119 928
I 311 000 311 000
822 500 822500 1 589 500
800 000 800 000 920 000
2 780 000 2 780 000 1 935 000
I 230 140 230 140 187409
2 995 441 230 140 1 962 844 5 873 999 5 765 807
I 4 284 453 4 284 453 4 124018
8817958 8817958 8 033 534
I 1 092 822 1 092 822 685 658
503 635 1419732
I 3 494 482 3035781
(25 985) (114 596)
I 9910780 4 284 453 18 167365 17184 127
I $12906221 $ 230 140 $ 4 284 453 $1962844 $24041 364 $22 949 934
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1996
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest on investments
Miscellaneous
TOTAL REVENUE
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Capital outlay
Debt service
Principal
Interest and service charges
752095
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Lease purchase proceeds
Operating transfers out
752 095
(156989)
568 270
311 000
039999)
639 271
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND OTHER
FINANCING USES
(21 396) (829 671 ) 482 282
1 544 348 1419732 1 376 837
114342
(86426) (27916)
$1 522952 $ 503 635 $ 1 945 545
FUND BALANCE, JANUARY 1
FUND EQUITY TRANSFER IN
FUND EQUITY TRANSFER OUT
FUND BALANCE, DECEMBER 31
See Notes to Financial Statements.
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I Exhibit 2
Totals
I (Memorandum Only)
1996 1995
$ 1 754 166 $ 1 520 430
I 205 459 184857
522 088 525 468
45 245 20 505
I 80 826 68765
147210 177 920
227 982 225424
422 133 82 559
I 3405 109 2 805 928
I 767 392 719 092
689 904 647 633
472 607 432 759
I 109249 114 286
767 908 382 770
I 887 000 231 000
145419 99 823
3 839 479 2 627 363
I (434 370) 178 565
I 579 720 587 225
311 000
(825 135) (567 225)
I 65 585 20 000
I (368 785) 198 565
4340917 4 142352
I 114342 6449
(114 342) (6449)
I $ 3 972 132 $ 4 340 917
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CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 1996
Exhibit 3
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessment
Interest on investments
Miscellaneous revenue
Variance-
Favorable
Budget Actual (Unfavorable)
$ 1 573 930 $1 569653 $ (4277)
170 300 205 459 35 159
427 468 427 468
48 500 45 245 (3255)
80 000 80 826 826
75 000 95 711 20 711
21 500 33 393 11 893
2 396 698 2457 755 61 057
TOTAL REVENUE
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Capital outlay
761422 767 392 (5970)
694 268 689 904 4364
453 226 472 607 (19381 )
130821 109 249 21 572
52775 15813 36 962
2092512 2 054 965 37 547
304 186 402 790 98 604
30 000 (30 000)
(424 186) (424 186)
(394 186) (424 186) (30000)
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES
FUND BALANCE, JANUARY 1
FUND BALANCE, DECEMBER 31
$ (90000)
(21 396)
1 544 348
$ 1 522 952
$ (68604)
See Notes to Financial Statements.
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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, 1996
OPERATING REVENUE
Sales
Less cost of sales
Entelllrise
GROSS PROFIT
$ I 705 355
(1 364 953 )
340 402
Charges for services
Permits and connection fees
1 073 136
34016
GROSS PROFIT AND REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
MCES disposal charges
Rent
Advertising
Other
1 447 554
196 806
15471
15223
281 179
9863
166 129
1257
21 807
10492
76418
488 439
113 514
9159
44 331
1 450 088
TOTAL OPERATING EXPENSES
OPERATING LOSS
(2 534 )
NONOPERATING REVENUE (EXPENSES)
General property taxes
Special assessments
Interest on investments
Other income
Interest expense
16304
59919
140396
22 137
(74473 )
TOTAL NONOPERATING REVENUE (EXPENSES)
NET INCOME BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
164 283
161 749
320 150
(74 735)
407 164
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
685 658
$ 1 092 822
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1996
Exhibit 5
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss
Other income related to operations
Adjustments to reconcile operating loss to net cash provided by operating activities:
Depreciation and amortization
(Increase) decrease in assets -
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments
Due for other funds
Inventory
Prepaid items
Increase ( decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
Due to other funds
Entelllrise
$ (2 534 )
22 137
282 196
18 888
32
(11441)
(145756)
34 411
(24291 )
647
(34913 )
3420
(7 593)
(34411 )
100792
320 150
(74 735)
245415
849 293
(15000)
(74473 )
(1 805 726)
16304
54 917
(974 685)
140396
(488082)
2881217
$ 2 393 135
CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers to other funds
Operating transfers from other funds
CASH PROVIDED BY NONCAPITAL FINANCING ACTIVmES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of fIxed assets
Property taxes levied for debt service
Special assessments paid
CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Property and equipment acquired from other funds
$ 556 923
$ 232 500
Additions to contributed capital from note proceeds
See Notes to Financial Statements.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Shorewood is a statutory city operating in accordance with the Plan A form of government. As
required by generally accepted accounting principles, the fInancial statements of the reporting entity include
those of the City of Shorewood (the primary government) and its component units. The City of Shorewood
does not have any component units requiring either a blended or discrete presentation.
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fIscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates
funds according to their intended purpose and is used to aid management in demonstrating compliance with
fInance-related legal and contractual provisions. The minimum number of funds are maintained consistent
with legal and managerial requirements. Account groups are a reporting device to account for certain assets
and liabilities of the governmental funds not recorded directly in those funds.
The City has the following fund types and account groups:
Governmentalfunds are used to account for the City's general government activities. Governmental fund
types use the flow of current fInancial resources measurement focus and the modifIed accrual basis of
accounting. Under the modifIed accrual basis of accounting, revenues are recognized when susceptible to
accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction
can be determined, and "available" means collectible within the current period or soon enough thereafter to
pay liabilities of the current period. The City considers all revenues available if they are collected within 60
days after year end. Expenditures are recorded when the related fund liability is incurred, except for
unmatured interest on general long-term debt which is recognized when due, and certain compensated
absences and claims and judgments which are recognized when the obligations are expected to be liquidated
with expendable available fmancial resources.
Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other
receipts and taxes become measurable and available when cash is received by the government and are
recognized as revenue at that time.
The preparation of general purpose fInancial statements in conformity with generally accepted accounting
principles 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 genera/fund is the City's primary operating fund. It accounts for all fmancial resources of the City,
except those required to be accounted for in another fund.
The debt service funds account for the servicing of general long-term debt not being fmanced by proprietary
funds.
The capital projects funds account for the acquisition of fIxed assets or construction of major capital projects
not being fmanced by proprietary funds.
Proprietary funds are accounted for on the flow of economic resources measurement focus and use the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time liabilities are incurred. The City applies all applicable F ASB pronouncements in
accounting and reporting for its proprietary operations. Proprietary funds include the following fund type:
-9-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Enterprise funds are used to account for those operations that are fmanced and operated in a manner similar to
private business or where the Council has decided that the determination of revenues earned, costs incurred
and/or net income is necessary for management accountability.
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of
others.
Agency Funds are established to account for cash or other assets held by the city as trustee or agent for
individuals, private organizations, other governments and/or other funds. The fund is custodial in nature
(assets equal liabilities) and does not involve measurement of results of operations.
Account Groups. The general fixed assets account group is used to account for fixed assets not accounted for
in proprietary funds. The general long-term debt account group is used to account for general long-term debt
and certain other liabilities that are not specific liabilities of proprietary funds.
C.
Assets, Liabilities and Equity
Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition.
State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, repurchase agreements and shares of investment companies registered under the Federal Investment
Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its
agencies.
Investments are stated at lower of cost or amortized cost, or market value, except for investments in the
deferred compensation agency fund which are reported at market value. Earnings on investments are
allocated to the individual funds based upon the average of month-end cash and investment balances.
Property Taxes
The City Council annually adopts a tax levy and certifies it to the County for collection. The County is
responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable
property within the City on January 1 and are payable by the property owners in two installments. The taxes
are collected by the County Treasurer and tax settlements are made to the City during January, June, and
November each year.
Taxes payable on homestead property, as defmed by State statutes, are partially reduced by a homestead and
agricultural credit aid. The credit is paid to the City by the State of Minnesota in lieu of taxes levied against
homestead property. The State remits this credit in two equal installments in July and December each year.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset
by a deferred revenue liability for delinquent taxes not received within 60 days after year end.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners.
These assessments are recorded as receivables upon certification to the County. Special assessments are
recognized as revenue when they are received in cash or within 60 days after year end. All special
assessments receivable are offset by a deferred revenue liability.
Receivables and Payables
Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end
of the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of
interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as "due to/from other funds."
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Advances between funds are offset by a fund balance reserve account in applicable governmental funds to
indicate they are not available for appropriation and are not expendable available fmancial resources.
Inventories and Prepaid ItemslDeferred Charges
The inventories are stated at average cost, which approximates market using the fIrst-in, frrst-out (FIFO)
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items or deferred charges.
Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fIxed assets account
group at cost or estimated historical cost if purchased or constructed. Donated fIxed assets are recorded at
their estimated fair value at the date of donation. Assets in the general fIxed assets account group are not
depreciated. Interest incurred during construction is not capitalized on general fixed assets.
Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only to the City) are not capitalized.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets' lives are not included in the general fixed assets group or capitalized in the proprietary funds.
Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and
equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the
date of donation.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are
constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the
capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same
period.
Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line
method over the following estimated useful lives:
Assets
~
Furniture and equipment
Collection and distribution system
5 - 10
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Compensated Absences
Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available
fmancial resources is reported as an expenditures and a fund liability of the governmental fund that will pay
it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable
available fmancial resources are reported in the general long-term debt account group. No expenditure is
reported for these amounts. Vested or accumulated vacation leave of proprietary fund types is recorded as an
expense and liability of those funds as the benefits accrue to employees. No liability is recorded for
nonvesting accumulating rights to receive sick pay benefIts.
Long-term Obligations
The City reports long-term debt of governmental funds at face value in the general long-term debt account
group. Certain other governmental fund obligations not expected to be fmanced with current available
fmancial resources are also reported in the general long-term debt account group. Long-term debt and other
obligations fmanced by proprietary funds are funds are reported as liabilities in the appropriate funds.
-11-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 fmancing 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. Issuance costs are reported
as deferred charges.
Fund Equity
Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a
specific purpose. Reservations of retained earnings are limited to outside third-party restrictions.
Designations of fund balance represent tentative management plans that are subject to change. The
proprietary fund's contributed capital represents equity acquired through capital grants and capital
contributions from developers, customers or other funds.
Memorandum Only - Total Columns
Total columns on the general purpose fmancial statements are captioned as "memorandum only" because they
do not represent consolidated fmancial information and are presented only to facilitate fmancial analysis. The
columns do not present information that reflects fmancial position, results of operations or cash flows in
accordance with generally accepted accounting principles. Interfund eliminations have not been made in the
aggregation of this data.
Comparative DataIReclassifications
Comparative total data for the prior year have been presented in the selected sections of the accompanying
fmancial statements in order to provide an understanding of changes in the City's financial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
Note 2:
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the all
governmental funds, debt service and the capital projects funds, which adopt project length budgets. All
annual appropriations lapse at fIScal year end.
In August of each year, all departments of the City submit requests for appropriations to the City
Administrator so that a budget may be prepared. Before September 15, the proposed budget is presented to
the City's council for review. The council holds public hearings and a fmal budget is prepared and adopted in
early December.
The appropriated budget is prepared by fund, function and department. The City's department heads, with
the approval of the City Administrator, may make transfers of appropriations within a department. Transfers
of appropriations between departments require the approval of the City Council. The legal level of budgetary
control is the department level. Budgeted amounts are as originally adopted, or as amended by the City
Council.
B.
Compliance and Accountability
Fund Deficits
The following fund has a deficit fund balance as of December 31, 1996:
Capital Projects Funds
Shady Island Bridge Reconstruction
The deficit in this fund will be eliminated by future revenue sources.
$ 25 985
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Note 3:
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-13-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments
Cash balances of the City's funds are combined (pooled) and invested to the extent available in various
investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed
on the fmancial statements as "cash and temporary investments." For purposes of identifying the risk of
investing public funds, the balances are categorized as follows:
Deposits
In accordance with Minnesota Statutes and as authorized by the City Council, the City maintains deposits at
those depository banks, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140%
in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage notes,
and certain other State or local government obligations. Minnesota Statutes require that securities pledged as
collateral be held in safekeeping by the City or in a fmancial institution other than that furnishing the
collateral.
At year end, the City's carrying amount of deposits was $1,100,059 and the bank balance was $1,145,541. Of
the bank balance, all was covered by federal depository insurance or by collateral held by the City's 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.
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.
At year end, the City's investment balances were as follows:
Category
2
3
Carrying
Amount
$
$ 2 263 249
3011 904
5275 153
U.S. Government Securities
Commercial Paper
$ 2 263 249 $
3011 904
$ 5 275 153 $
$
Total
Investments not subjected
to categorization:
4M Money Market Fund
Deferred compensation investments
106476
230 140
$ 5611 769
Total investments
Cash on Hand
Cash in the possession of the City, consisting of petty cash totals $1,900.
Market
V alue
$2248 466
3 060 846
5309312
106476
230 140
$5 645 928
Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
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
$ 1900
1 100 059
5611 769
$ 6713 728
Total
ClassifIed on the combined balance sheet as:
Cash and temporary investments
Investments for deferred compensation
$ 6 483 588
230 140
$ 6 713 728
Total
B. Notes Receivable
On May 28, 1996, the City entered into a service agreement with the City of Victoria to provide water. The
total amount of the water availability fee was $232,500 and will be fmanced in fIve equal principal
installments of$46,500 through July 1,2000. Two payments will be made in 1997 because the service was
not completely in place at the end of 1996. Interest of 5.75% will be paid on the outstanding balance. The
outstanding balance at December 31, 1996 was $232,500.
C. Fixed Assets
A summary of changes in general fIxed assets for the year ended December 31, 1996 is as follows:
Balance
Beginning Balance
of Year Additions Deletions End of Year
Land $ 456 826 $ $ $ 456 826
Buildings and structures 1 322 073 1 322 073
Improvements other than buildings I 268 345 45913 1314258
Furniture and equipment I 076 774 213 382 98 860 1 191296
Total $4 124018 $ 259 295 $ 98 860 $4 284 453
The following is a summary of proprietary fund type fIxed assets at December 31, 1996:
Enteq>rise Funds
Stormwater
Mgmt
Water Sewer Recycling Utility Liq.uor Total
Furniture and
equipment $ 24 178 $ 37827 $ $ $ 100260 $ 162 265
Collection and
distribution system 3 151 862 7 522 466 10674328
Construction work
in progress 2887177 2887 177
Total 6063217 7 560 293 100 260 13 723 770
Less accumulated
depreciation (834 877) (4 123750) (30210) (4 988 837)
Net Fixed Assets $5 228 340 $3 436 543 $ $ $ 70 050 $ 8 734 933
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
D. Deferred Revenue
Deferred revenue at December 31, 1996 is comprised of the following:
Debt Capital
General Service Proiect Total
Delinquent taxes $ 29 345 $ 163 $ $ 29 508
Special assessments
Delinquent 1620 9827 484 11 931
Deferred 55 388 112 7676 395 843
Total $ 31 020 $ 398 102 $ 8160 $ 437 282
E. Long-term Debt
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for general government
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 Special Assessment 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. All special assessment debt is backed by the full faith and credit of the
City. Each year the combined assessment and tax levy equals 105% of the amount required for debt service.
The excess of 5% is to cover any delinquencies in tax or assessment payments.
Authorized
and Issued
Balance at
Interest Rate Issue Date Maturity Date Year End
G.O. Improvement Bonds
of 1991 $ 960 000 5.20-5.85% 11-01-91
G.O. Improvement Bonds
of 1991 31000 8.00 9-01-91
G.O. Improvement Bonds
of 1993 325 000 3.75-4.80 12-01-93
2-01-02
$ 570 000
7500
2-01-97
2-01-04
245000
$ 822 500
Total General Obligation Improvement Bonds
General Obligation Tax Increment Revenue Bonds
The following bonds were issued for redevelopment projects. The additional tax increments resulting from
increased tax capacity of the redeveloped properties will be used to retire the related debt. They are not
backed by the full faith and credit of the City.
G.O. Tax Increment Bonds
of 1987
$ 800 000
2-01-00
5-01-91
$ 920 000
9.00%
-15-
Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
Other General Long-Term Debt
Lease Purchase Payable
During 19Q6, the City entered into a lease, with option to purchase, agreement as lessee for fmancing the
South Shore Senior Center project. Title remains with the City so long as they are not in default of terms in
the lease agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore,
has been recorded at the present value of the future minimum lease payments as of the date of its inception.
Authorized
and Issued
Balance at
Interest Rate Issue Date Maturity Date Year End
$ 311 000
5-30-96
8-01-08
$ 311000
6.22%
Sick leave/severance payable
This liability represents vested benefits earned by employees through the end of the year, which will be paid
at retirement in future periods.
Total Sick leave/severance payable
$ 29344
Enterprise Fund Debt
General Obligation Revenue Bonds
G.O. Water Revenue Bonds
of 1995
G.O. Water Revenue Bonds
of 1996
$ 1 920 000
2-01-11
$1920000
3.90-5.50% 11-01-95
2-01-12
860 000
$2 780 000
860 000
4.00-5.400.10 11-01-96
Total General Obligation Revenue Bonds
Changes in General Long-term Liabilities. During the year ended December 31, 1996, the following changes
occurred in liabilities reported in the general long-term debt account group.
Balance Balance
January 1, December 31,
1996 Additions Reductions 1996
G.O. Improvement Bonds $1 589500 $ $ 767 000 $ 822 500
Tax Increment Bonds 920 000 120000 800 000
Lease purchase payable 311 000 311 000
Sick leave/severance payable 21 863 7481 29 344
Total $2 531363 $ 318 481 $ 887 000 $ I 962 844
The annual service requirements to maturity for all bonds and notes outstanding at December 31, 1996 are as
follows:
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Note 3:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
EnterPrise
General Long-term Debt Account GroQp Funds
Tax
G.O. Special Increment Lease G.O.
Year Ending Assessment Revenue Purchase Revenue
December 31. Bonds Bonds Payable Bonds Total
1997 $ 181 634 $ 336 869 $ 37544 $ 244 191 $ 800 238
1998 167 250 367 859 37544 318383 891 036
1999 160443 401 710 37 544 295 934 895 631
2000 148588 429 028 37 544 298 020 913 180
2001 136 776 37 544 284 739 459 059
Thereafter 162 049 262 807 2 425 350 2 850 206
Total 956 740 1 535 466 450 527 3866617 6 809 350
Less interest (134240) (735 466) (139 527) (l 086617) 0095850)
Principal $ 822 500 $ 800 000 $ 311 000 $ 2 780 000 $4713 500
Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of
long-term debt totaled $503,635 at year end.
Amounts to be Providedfor Long-term Debt. This represents future revenue to be generated for debt
payments and sick leave/severance benefits payable, generally including interest earnings, tax increments,
scheduled tax levies and deferred (future) special assessment levies.
F. Fund Equity Reservations and Designations
The components of fund equity are described in Note 1. Certain reserves and designations have been made in
the following funds:
Reserved
Governmental Funds
Debt Service Funds
1993 Improvement and Refunding
Waterford III Tax Increment
Shady Hills Storm Sewer
1991 Improvement and Refunding
Total Reserved
PUI:Pose
Amount
Debt service on bonds issued
Debt service on bonds issued
Debt service on bonds issued
Debt service on bonds issued
$ 170512
7507
7819
317 797
$ 503635
Unreserved - Designated
Governmental Funds
General
Capital Projects
Capital Improvements
Park Capital Improvements
Equipment Replacement
Street Reconstruction
MSA Construction
Trail Capital Improvements
1995 Freeman Park Imp.
Senior Community Center
Cathcart Park Improvements
Working capital
$ 1 522 952
Capital Improvements
Park Improvements
Equipment
Streets
MSA Construction
Trail Improvements
Freeman Park
Senior Center
Cathcart Park
138410
110 864
76 387
969 668
175812
95 873
24 866
376 043
3607
$ 3 494 482
Total Unreserved - Designated
-17-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED
G. Contributed Capital
The changes in the government's contributed capital accounts for its proprietary funds were as follows:
Sources
Entewrise
Water Sewer
Total
Beginning balance,
Contributed capital
Contributing sources:
Developer and customer
Water note proceeds
$3716216
478610
232 500
$4317318
73 314
$8 033 534
551 924
232 500
Ending balance,
Contributed capital
$4 390 632
$8817958
$4 427 326
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. Plan Description
All full-time and certain part-time employees of the City of Shorewood are covered by defmed benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the
Public Employees Retirement Fund (pERF) which is a cost-sharing, multiple-employer retirement plan. This
plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon
death of eligible members. Benefits are established by State Statute and vest after three years of credited
service. The 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.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring
member receives the higher of the step-rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.0 percent of average salary
for each of the fIrst 10 years of service and 2.5 percent for each remainmg year. For a Coordinated Plan
member, the annuity accrual rate is 1.0 percent of average salary for each of the frrst 10 years and 1.5 percent
for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic
Plan members and 1.5 percent for Coordinated Plan members. For PERF members whose annuity is calculated
using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement
annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a lifetime
annuity that ceases upon the death of the retiree -- no survivor annuity is payable. There are also various types
of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because
the annuity is payable over joint lives. Members may also leave their contributions in the fund upon
termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of
contributions are available at any time to members who leave public service, but before retirement benefits
begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them
yet are bound by the provisions in effect at the time they last terminated their public service.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
PERA issues a publicly available fmancial report that includes fmancial statements and required supplementary
information for PERF. That report may be obtained by writing to PERA, 514 St. Peter Street, #200, St. Paul,
Minnesota 55102 or by calling (612) 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 state statutes. PERF Basic Plan members and Coordinated Plan members are
required to contribute 8.23% and 4.23%, respectively, of their annual covered salary. The City is required to
contribute the following percentages of annual covered payroll: 10.73% for Basic Plan PERF Members and
4.48% for Coordinated Plan PERF members. The City's contributions for the years ending December 31,
1996, and 1995 were $30,416 and $29,103, respectively, equal to the contractually required contributions for
each year as set by state statute.
Note 5: JOINT VENTURES
A. South Lake Minnetonka Public Safety Department
The City of Shorewood participates in a joint powers agreement with the cities of Excelsior, Greenwood and
Tonka Bay which establishes the South Lake Minnetonka Public Safety Department for the purpose of
providing police protection within the four communities. The agreement creates a coordinating committee,
comprised of the mayors of each participating community, as the governing body, which meets quarterly.
Each year, the Coordinating committee adopts an operating budget, which is approved by all participating
cities. The cost of the budget is divided between the participating cities based upon a five-year average
demand for service in each city. The percentage contributed in 1996 by the City of Shorewood is 44.8%.
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,
1997.
South Lake Minnetonka Public Safety Department has accounts payable, accrued payroll, compensated
absences and deferred revenue in the General Fund of$164,389, and deferred compensation benefits payable
in the Agency Fund of $205,318 at year end. There is no other current or long-term debt outstanding as of
December 31, 1996. The following is a summary of the Department's balance sheet as of December 31,1996
and the statement of revenue, expenditures and changes in fund balance for the General Fund for the year
ended December 31, 1996.
SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1996
General Totals
General Agency Fixed (Memorandum Only)
Fund Fund Assets 1996 1995
Total assets $316614 $ 205 318 $332 961 $ 854 893 $ 763 622
Liabilities $ 164389 $ 205 318 $ $ 369 707 $ 309275
Fund equity 152225 332961 485 186 454 347
Total liabilities and fund equity $316614 $ 205318 $332 961 $ 854 893 $ 763 622
-19-
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 5: JOINT VENTURES - CONTINUED
SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT
SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1996
(With comparative actual amounts for the year ended December 31, 1995)
1996 1995
Variance -
Favorable
Budl:et Actual (Unfavorable) Actual
Total revenue $ 1 155 440 $ 1 189 252 $ 33 812 $ 1 149971
Total expenditures 1 170440 1 177 094 (6654 ) 1 119473
Excess of revenue over (under)
expenditures $ (I5000) 12 158 $ 27 158 30 498
Fund balance, January 1 140067 109569
Fund balance, December 31 $ 152 225 $ 140067
B. South Lake Minnetonka Community Center
The City participates in a joint venture with the cities of Excelsior, Deephaven, Greenwood and Tonka Bay
which establishes the Southshore Senior Community Center to provide senior citizens educational and
recreational activities. Upon completion of the Senior Center, the Cities will lease the Senior Center to the
Friends of the South Lake Minnetonka Senior Community Center. The term of the lease shall be 25 years at a
rental rate of $1 per year. The Friends of the South Lake Minnetonka Senior Community Center are required to
pay all operating costs of the Senior Center. The member cities are responsible for a proportionate share of the
building construction. Shorewood fmanced their share with a lease purchase obligation. The amount of the
lease purchase is $311,000 and is reflected in the General Long-term Debt Account Group. In the event
operating costs are not covered by revenue, each member City is responsible for their proportional share of the
expense. The building costs incurred by the City are reported in the Senior Center Capital Project fund and
will be recorded in the General Fixed Asset Account Group when the Senior Center is completed. The
ownership interest of the City is proportionate to each City's investment in the Senior Center.
Note 6: OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters for which the City carries insurance The City
obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a
risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to
LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining
through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance
event. Settled claims have not exceeded the City's coverage in any of the past three fIScal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$I,OOO,OOO.
Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's
management is not aware of any incurred but not reported claims.
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 6: OTHER INFORMATION - CONTINUED
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Service Code Section 457. The plan, available to all full-time City employees at their option, permits
participants to defer a portion of their salary until future years. The deferred compensation assets are not
available to employees until termination, retirement, death or unforeseen emergency.
All amounts of compensation deferred under this plan, all property and rights purchased with those amounts,
and all income attributable to those amounts, property or rights are (until paid or made available to the
participant or beneficiary), solely the property of the City, subject only to the claims of the City's general
creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount
equal to the fair market value of the deferred account for each participant.
It is the option of the City's legal counsel that the City has no liability for losses under the plan but does have
the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely
that it will use the assets to satisfy the claims of general creditors in the future.
Assets of the plan are held by trustees and are reflected in these statements in an Agency Fund at market value.
C. Segment Information for Enterprise Funds
Stormwater
Management
Water Sewer Recycling Utility Liq.uor Total
Operating revenue $ 272 678 $ 719448 $ 70 535 $ 44491 $ 342 054 $1449206
Depreciation expense 80 649 190 154 10 376 281 179
Operating income (loss) 21 544 (18652) (410) 29 458 (32822) (882 )
Operating transfers from
other funds 210 150 11 0 000 320 150
Operating transfers to other
funds (10 726) (24201 ) (39 808) (74735)
Property tax revenue 16304 16304
Net income (loss) 317920 13 409 140 104098 (28 403 ) 407 164
Fixed asset additions 2 264 548 95 004 3097 2 362 649
Net working capital 1 865 427 1 309 700 23 209 205 348 266174 3 669 858
Contributed capital additions 711 110 73314 784 424
Total assets 7501 722 4 758 656 23 209 205 365 417 269 12906221
Total equity 4599756 4 746 243 23 209 205 348 336 224 9910780
D. 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 fmanced partially or entirely by special assessments, enterprise fund
revenues or tax increments.
-21-
Note 7:
Note 8:
Note 9:
CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
OPERATING LEASES
The City leases space for liquor store operations. These leases are considered, for accounting purposes, to be
operating leases. Lease expense for the year ended December 31, 1996 and 1995 amounted to $113,514 and
$92,863. Future minimum lease payments for the liquor store I and Tonka Bay leases are as follows:
Year Ending
December 31.
Store I
Tonka Bay
1997
1998
1999
2000
2001
$ 49 500
49 500
49 500
49 500
49 500
$ 247 500
$ 12 000
Total
$ 12 000
The new lease for the Store I began January 1, 1995 and will run through December 31, 2001. Store II is currently
under a month to month lease. The monthly rent payments are $1,995.
In December, 1994, the City of Shore wood entered into an agreement with the City of Tonka Bay to lease and
operate its municipal liquor operations. The lease extends over a period of three years, ending on December 31,
1997. Under the agreement, a base rent of $1 ,000 per month, plus a percentage rent of 2% of gross sales in excess
of $400,000 per year will be paid to the City of Tonka Bay. Shorewood leases the building and fixtures and has
purchased the merchandise inventory from Tonka Bay. The City of Shorewood will operate the location as part of
its current municipal liquor operations.
TAX INCREMENT REVENUE BONDS
During 1991, the City issued $920,000 Tax Increment Revenue Bonds. The proceeds of the issue will be used to
pay for public improvements stipulated in the development agreements. The bond proceeds and related
improvement costs are reported in the Waterford III Tax Increment Improvement Capital Projects Fund. The bonds
were issued at par value not to exceed $920,000. The bonds are not a general obligation of the City and are not
backed by the full faith and credit or taxing powers of the City. The bonds are payable solely from the tax
increments from the City's Tax Increment Financing District No.1. In addition, upon completion of the project, all
excess bond proceeds will be repaid to the holder of the bonds as principal reduction. Interest at a rate of nine
percent will accrue from the date of issuance of the bonds but will not be payable until tax increment is available.
The bonds payable are reported as a liability in the General Long-term Debt Account Group in the fmancial
statements even though:
The bonds issued are tax increment revenue bonds.
The bonds are not backed by the full faith and credit of the City.
The bonds will be repaid only to the extent that tax increments are generated from the Tax Increment
Financing District.
INTERFUND RECEIVABLES AND PAY ABLES
The following is a summary of interfund receivables and payables at year end:
Receivable
From
Payable
To
Capital Project Funds
Shady Island Bridge Reconstruction
Street Reconstruction
$ 13 985
$ 13 985
-22-
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CITY OF SHOREWOOD, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 10: OPERATING TRANSFERS
A schedule of operating transfers follows:
General Fund
Debt Service
1993 Improvement and Refunding
Shorewood Oaks
Shady Hills Storm Sewer Improvement
Capital Projects Funds
Capital Improvements
Park Capital Improvements
Equipment Replacement
Street Reconstruction
Trial Capital Improvement
Senior Community Center
Enterprise Funds
Water
Sewer
Stormwater Management Utility
-23-
Transfer
In
$
10 000
1450
10000
30 000
104 186
270 000
24 500
129 584
210 150
II 0 000
Transfer
Out
$ 424 186
160950
15 000
224 999
10 726
24 201
39808
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CITYOF.SHqREWOOD,;l"IN~SOrA
TH;E! GENERAL FUND
/)\. . :!. ...... .. . /
The G~ner;p Fund is l.lsed to aCcount for resources ttaditi~nally associate4 with govenurient
"Yhidr are not r~legally or by sQundfinaqcial managem~nt to\be. ac<;ounterr;{or in
otherfl.lnds. It normally receives a greater variety and number of taxes andothet g~neral
revenues than any other fund.. The majority of the current day-to-day operations will be
financed from this fund. . ,
ASSETS
Cash and temporary investments
Accrued interest receivables
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Salaries payable
Refundable deposits payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Unreserved
Designated for working capital
CITY OF SHOREWOOD, MINNESOTA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
TOTAL LIABILITIES AND FUND BALANCE
-24-
Exhibit A-I
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1996 1995
$1 571 287 $1 576 162
27 898 56 452
44 726 44 622
20 339 22221
1620 2148
55 735
$1665925 $1 702 340
$ 58 596 $ 69 941
22319 15 157
31038 43 560
31 020 29 334
142973 157 992
1 522 952 1 544 348
$1 665925 $1 702340
I
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, 1996
(With Comparative Amounts for the Year Ended December 31, 1995)
1996 1995
I Variance -
Favorable
Budget Actual (Unfavorable ) Actual
I REVENUE
General property taxes
General property taxes $1 513 869 $1 509592 $ (4277) $1429491
Fiscal disparities 60061 60061 60331
I Total 1 573 930 1 569 653 (4277) 1 489 822
I Licenses and permits
Business 10 200 10 920 720 9250
Nonbusiness 160 100 194 539 34 439 175607
I Total 170 300 205 459 35 159 184 857
Intergovernmental - State
I Property tax credits 413 718 413 718 426 970
Other 13 750 13 750 13 750
I Total 427 468 427 468 440 720
Charges for services
General government 6500 10451 3951 13 156
I Parks and recreation 42 000 34 794 (7 206) 7 349
Total 48 500 45 245 (3 255) 20 505
I Fines and forfeitures 80 000 80 826 826 68 765
I Miscellaneous revenue
Special assessments 671
Interest on investments 75 000 95 711 20711 84616
Other 21 500 33 393 11 893 58 053
I
Total 96 500 129 104 32 604 143340
I TOTAL REVENUE 2 396 698 2457 755 61 057 2 348 009
EXPENDITURES
I Current Expenditures
General Government
Mayor and Council
Personal services 13 564 13564 13 564
I Supplies 2250 1503 747 830
Other services and charges 52 727 48 309 4418 36 856
Contingency 3425 3425
I Total 71 966 63 376 8590 51 250
I -25-
I
CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND Continued I
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1996 I
(With Comparative Amounts for the Year Ended December 31, 1995)
1996 1995
Variance - I
Favorable
Budget Actual (Unfavorable) Actual
EXPENDITURES - CONTINUED I
Current Expenditures - Continued
General Government - Continued
Administrative
Personal services $ 88 102 $ 93 895 $ (5793 ) $ 95 053 I
Supplies 700 517 183 363
Other services and charges 7400 6572 828 7007
Total 96 202 100 984 (4782) 102 423 I
Finance I
Personal services 87 897 87919 (22) 80 642
Supplies 3750 4113 (363 ) 3381
Other services and charges 8150 4096 4054 5197
I
Total 99 797 96 128 3669 89 220
Professional services I
Personal services 65016 57 509 7507 4290
Supplies 1300 1421 (121 ) 1257
Other services and charges 127 950 153861 (25911 ) 197337 I
Total 194 266 212 791 (18525) 202 884
Planning and zoning I
Personal services 85 874 88 779 (2 905) 88 156
Supplies 1500 1095 405 436
Other services and charges 9500 7672 1828 7303 I
Total 96 874 97 546 (672 ) 95 895
Municipal building I
Supplies 11 600 9472 2128 12 309
Other services and changes 83 900 75 882 8018 80 217
Total 95 500 85 354 10 146 92 526 I
Other general government I
Personal services 78 667 78 669 (2) 60275
Supplies 14000 17491 (3491 ) 14 636
Other services and charges 14 150 15 053 (903 ) 9983
Total 106 817 111 213 (4396) 84 894 I
Total General Government 761 422 767 392 (5 970) 719092 I
-26- I
I
CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
I GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
I YEAR ENDED DECEMBER 31, 1996
(With Comparative Amounts for the Year Ended December 31, 1995)
1996 1995
I Variance -
Favorable
Budget Actual (Unfavorable) Actual
I EXPENDITURES - CONTINUED
Current Expenditures - Continued
Public Safety
Police protection
I Supplies $ $ 1043 $ (1043) $ 339
Other services and charges 466 423 466 633 (210) 442176
I Total 466 423 467 676 (1253) 442 515
Fire protection
I Other services and charges 133 395 136 942 (3 547) 123 513
Protective inspection
Personal services 65 775 59911 5864 58 459
I Supplies 775 847 (72) 404
Other services and charges 27 900 24 528 3372 22 742
I Total 94 450 85 286 9164 81 605
Total Public Safety 694 268 689 904 4364 647633
I Public Works
General maintenance
Personal services 131 133 181 638 (50505) 164346
I Supplies 35 000 36881 (1881) 33 158
Other services and charges 18 050 18 088 (38) 15 144
I Total 184 183 236607 (52424 ) 212648
Streets and roadways
Personal services 97 279 65-072 32 207 71 137
I Supplies 30 000 33 779 (3 779) 26 309
Other services and charges 38 600 28 069 10 531 30 975
I Total 165 879 126 920 38 959 128421
Snow and ice removal
I Personal services 25 450 32 776 (7326) 20 663
Supplies 15000 17 265 (2 265) 16 995
Total 40 450 50 041 (9 591 ) 37658
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1996
(With Comparative Amounts for the Year Ended December 31, 1995)
1996 1995
Variance -
Favorable
Budget Actual (JJnfavorable) Actual
EXPENDITURES - CONTINUED
Current Expenditures - Continued
Public Works - Continued
Traffic control
Supplies $ 4000 $ 4021 $ (21 ) $ 2071
Other services and changes 33 000 33 546 (546 ) 33 405
Total 37 000 37567 (567) 35 476
Sanitation and waste removal
Personal services 611 999 (388 ) 621
Other services and charges 4 000 3621 379 3731
Total 4 611 4620 (9) 4352
Tree maintenance
Personal services 7733 6165 1568 887
Supplies 13 370 10 687 2683 13 317
Total 21 103 16 852 4251 14204
Total Public Works 453 226 472 607 (19381 ) 432 759
Culture and Recreation
Personal services 87271 72 645 14626 73 595
Supplies 19 550 16790 2760 19709
Other services and charges 24 000 19814 4186 20 982
Total Culture and Recreation 130821 109 249 21 572 114 286
Total Current Expenditures 2 039 737 2039 152 585 1 913 770
Capital Outlay
General government 16 525 15 074 1451 4006
Public safety 3070
Culture and recreation 1250 739 511 1 160
Other 35 000 35 000
Total Capital Outlay 52 775 15813 36 962 8236
TOTAL EXPENDITURES 2092512 2 054 965 37 547 1 922 006
EXCESS (DEFICIENCY) OF REVENUE OVER
EXPENDITURES 304 186 402 790 98 604 426 003
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CITY OF SHOREWOOD, MINNESOTA Exhibit A-2
GENERAL FUND Continued
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 1996
(With Comparative Amounts for the Year Ended December 31, 1995)
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
1996 1995
Variance -
Favorable
Budget Actual (JJnfavorab1e) Actual
$ 30 000 $ $ (30 000) $ 30 000
(424 186) (424 186) (404225)
(:394 186) (424 186) (30000) (374225)
TOTAL OTHER FINANCING SOURCES
(USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES $ (90 000)
(21 396) $ 68604
51 778
FUND BALANCE, JANUARY 1
1 544 348
1 497 678
FUND EQUITY TRANSFERS OUT
(5 108)
FUND BALANCE, DECEMBER 31
$1 522952
$1 544 348
-29-
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CITY OFSHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
/' .
Debt service ,funds, are used to account for.the pay~nt of interest and princip<ll on 19n9-
term genel1l1 obligation debt other than debt issued for, and serviCed' primarily J>y enterprise
funds. ' \
1993 Improvement ,and Refunding Fund-This fund was established to account for
the accumulation of resources for payment of interesf1Uld principal on bonds ,is$ued for the
Season's development improvements, and to refund,the 1987 refunding b(.>n(!s. '
Shorewood Oaks fund - This fund was established to account for the.accwrtulation of
resources for the payment of interest and principal on bonds is~ed for street. and utility
improvements in the Shorewood Oaks development. The debt serviced by this fund was
called and paid in full in February, 1996. The residual balance was distributedbetwe,c}n
the 1993 Improvement and Refunding Fund, the Stormwater Management Fund and 4he
Public Facilities/Office Equipment Fund .at-the claseof the year.
W~terrord 01 TaxIncr~ment Fund,. 11ris fund was .'established, t().accountfor ,the
accumulation of R<sources forp"y~nt of interest and principal on bonds issue<i for,the
Waterford ill InterSection Improvements.
Shady Hills ,Storm Sewer ,Improvement Fund ,. This fQttd was establiShed to
account for the accumulation' of resources for payment of, interest and principal on . bonds
issued for the Shady Hills Storm Sewer Improvements. ,
1991" Improvement aud Re(undin~ 'Fllnd ,. 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 ROa<l impr9vements, and,',
to refund the 1986 improvementbQnds.
ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Special assessments receivable
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts and contracts payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Reserved for debt service
CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 1996
(With Comparative Totals for December 31, 1995)
1993
Improvement
and
Refunding
$ 168302
1913
1003
106 745
$ 277 963
$ $
107 451
107 451
170512
$ 277 963 $
TOTAL LIABILITIES AND FUND BALANCE
-30-
Shorewood
Oaks
$
$
Waterford
III Tax
Increment
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$ 3 796
351
3360
$ 7 507
$
7507
$ 7 507
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I Exhibit B-1
I 1991
I Shady Hills Improvement
Storm Sewer and Totals
Improvement Refunding 1996 1995
I $ 7669 $313124 $ 492 891 $1 371 241
18 4235 6517 42 577
295 3655 2374
I 9558 10 561 12 182
281 368 388 113 498871
I $ 7982 $ 608 285 $ 901 737 $1 927245
I $ $ $ $ 550
163 290 488 398 102 506 963
I 163 290 488 398 102 507 513
I 7 819 317 797 503635 1419732
$ 7982 $ 608 285 $ 901 737 $1 927245
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I -31-
79 749
7454
2076
1
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CITY OF SHOREWOOD, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31, 1996
(With Comparative Totals for the Year Ended December 31, 1995)
REVENUE
Property taxes
Intergovernmental - state .
Property tax credits
Special assessments
Interest on investments
1993
Improvement
and
Refunding
Shorewood
Oaks
Waterford
mTax
Increment
$
$
$ 176172
TOTAL REVENUE
87 203
2077
178255
EXPENDITURES
Debt service
Principal
Interest and service charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfer in
Operating transfer out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES
45 492
(803 792)
(14703)
FUND BALANCE, JANUARY 1
144 265
870 973
22210
FUND EQUITY TRANSFER OUT
(19245 )
(fJ7181)
FUND BALANCE, DECEMBER 31
$ 170512
$
$ 7 507
-32-
I
I Exhibit B-2
I 1991
Shady Hills Improvement
I Storm Sewer and Totals
Improvement Refunding 1996 1995
I $ 8341 $ $ 184 513 $ 30 608
335
63 981 145 806 170 732
I 131 12 260 21 929 63 301
8472 76241 352248 264 976
I
7000 100 000 887 000 231 000
I 881 34 950 145419 99 823
7881 134950 1 032419 330 823
I 591 (58 709) (680 171) (65 847)
I 1450 11 450
(160950)
I 1450 (149500)
I 2041 (58709) (829 671 ) (65847)
I 5778 376506 1419732 1 485 579
(86426)
I $ 7819 $ 317 797 $ 503635 $ 1419732
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CITY OFSHOREWOOD, MINNESOTA
CAPITAL PROJECTSlfUNDS
Capital projects fund~ are used to, account for the/acquisition' and consttuction,of major c8l>ital
facilities other ,than thQsefi9anced by enterprise fuilds, ' , ,
Public, Fad'ities/Office ' EqujpmentFund -This funp was established to account for capital
~provemem/ projects for public facilities and replacemC1Dt of office equipment which may be
financed without the r.(eea to i~sue bonds. ! "\
i." ". /
Park Ca,pital Impr~vem~ItK Fund - Thi~ fun~f accounts for park hmd acquisi~onand other
capital im{>rovements in the ~ity'parks. . /. ' i /
Equipment Relllace~ent Fund - This fund was established fot. the purpose'offunding the
replacement of c~ita1 equipment -
Street Reconstruction- FUtJd - This fund/waS 'established for the purpose of funding the
periodic reconstructiqn of City streetsandr9adw~y~.'
MSAConstruction Fund - fhisfund wa~established to account for the accumulati6n of
Municipal State Aid (MSA) to fund the periodicteeonstroction of MSA designated roads.
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Trail Capital Improvem~nt Fund- This fund ~as established to ,account for mutextensions
and improvements. . I
1995 Manor Park /Improvement Fund -, This ,fund was estal>lished to account for the
construction of improvements in Manor Park. This fund was closedatyeat. end by an, equity
transfert to the Park Capital Improvtjment Fund.
~. . . :
1995 Freeman Park, Improvement, I.?ynd - This fund was established to account for the
constnlctipn of improvements in FreelJUlfl Park;'
Senior ~Omm\lllity Center Fun~. - This fund was established to aCcount for the construction
ofa Senior Community Center. ) ..' '. :
Shady Island. Bridle. Replacemept Fund -This fund was/established to account for the ,
replacement of the Shady Island Bridge.
Silverw9od. Park. Improvemtl)tFuQd -/ This fund was.. establishedftOaccount f9i" the
construction of improvements in Silverwood Park. This fund was 'closed at ,year/end by an 'equity
transfer to the Park Capital Improvement Fund. ./ \..
City Hall Parkin, Lot )fund -This fund was established to account for ~,r6COnstructionof
the City Hall Parking Lot. This fund Was closed a1 yearend by an equitytransfer~tothePublic
facilities/Office Equipmen~.~und. ., \ .f . .\; ,..,;. ...., ....,. "
Seasons, Improvements Fund,. This fund . was established to account for $e oonstmctiQnof;
street and utility improvements forijle Seasons Elderly Housing ProjecJ. An eqUity ~sfer (ropti'!
its corresponding, debt service fund, the 1993 Impro"ementand Refunding Fund, to cover. a clefjCit.
effectively closed this fu,nd at year end. .
Vine Hill Improvement Fund- T~fund was established tq account for 'pteCity's costs
associated with the Minnesota Department of Tr)U1sportation's improvement of the intersection at
Vine Hill Ro~d and Highway 7. This fund was closed at year emi.byan equity transfer to the
Street Reconstruction Fund.
Qld Market Road ~rail Fund - This fund was created to account for, the constmction. ofa trail
al()flg Old Market Road. An equity transfer fro~ ~. .,~&A Construction Fund to cl:)ver a deficit
effectively closed this fund at year end. .
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Cathcart P~rk Improvements fund -. This fund was established to account for tlie
constmction of improvemepts in CathCart Park.
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I Exhibit C-l
Continued
I 1995 1995 Senior Shady Silverwood
MSA Trail Capital Manor Park Freeman Park Community Island Bridge Park
Construction Improvements Improvement Improvement Center Reconstruction Grading
I $ 170715 $ 94814 $ $ 24 496 , $ 471 062 $ $
2587 1059 370 5661
I 8887
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$ 182 189 $ 95 873 $ $ 24 866 $ 476 723 $ $
I
$ 6377 $ $ $ $ 75 530 $ 12 000 $
I 25 150
13 985
I 6377 100 680 25 985
I 175812 95 873 24 866 376 043
I (25 985)
175812 95 873 24 866 376043 (25 985)
I $ 182 189 $ 95 873 $ $ 24 866 $ 476 723 $ $
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I Exhibit C-l
Continued
I Cathcart
Park Totals
I Improvements 1996 1995
$ 3368 $ 2026 275 $ 1 392816
I 239 32 736 48 882
8887 5464
I 485 684
7676 1066
13 985 85 517
I $ 3607 $ 2 090 044 $ 1 534 429
I $ $ 97 204 $ 45 220
25 150 25 150
8160 1705
I 13 985 85 517
144499 157 592
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I 3607 1 971 530 1 491 433
05 985) (114 596)
3607 1 945 545 1 376 837
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$ 3 607 $ 2 090 044 $ 1 534 429
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I Exhibit C-2
Continued
I 1995 1995 Senior Shady Silverwood
MSA Trail Capital Manor Park Freeman Park Community Island Bridge Park
I Construction Improvements Improvement Improvement Center Reconstruction Grading
$ 45 771 $ $ $ $ $ $
I 10 022 3419 1963 33 131 99
I 371 020
I 55 793 3419 I 963 404151 99
I 177 71 26 1108
32410 25 985
I I 110 408 073
I 177 71 I 136 441 591 25 985
I 55 616 3348 827 (37440) 05 985) 98
24 500 129 584
I 311 000
I 24 500 440584
I 55 616 27 848 827 403 144 (25 985) 98
I 139 673 68 025 (5910) 24 039 (27 101) I 177
5910
I (19477) (l 275)
$ 175812 $ 95 873 $ $ 24 866 $ 376 043 $ (25985) $
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CITY OF SHOREWOOD, MINNESOTA
CAPITAL PROJECTS FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - CONTINUED
YEAR ENDED DECEMBER 31, 1996
(With Comparative Totals for the Year Ended December 31, 1995) I
City Hall Old
Parking Season Vine Hill Market
Lot Improvements Improvement Road Trail I
REVENUE
Intergovernmental $ $ 39 960 $ $ 8889
Special assessments I
Interest on investments 416 81
Miscellaneous
Park dedication fees
Contributions and donations I
Other 220
TOTAL REVENUE 416 39 960 301 8889 I
EXPENDITURES
Capital outlay I
Personal services
Other services and charges 6 6548
Professional services 65
Construction costs 1353 I
Machinery and equipment
TOTAL EXPENDITURES 1424 6 548 I
EXCESS (DEFICIENCY) OF REVENUE OVER
EXPENDITURES (l 008) 39 960 300 2341 I
OTHER FINANCING SOURCES (USES)
Operating transfers in
Lease purchase proceeds I
Operating transfers out
TOTAL OTHER FINANCING I
SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUE AND OTHER I
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES (l008) 39 960 300 2341
FUND BALANCE (DEFICIT), JANUARY I (562 ) (59205) 954 (21818) I
FUND EQUITY TRANSFER IN 1570 19245 19477
FUND EQUITY TRANSFER OUT (l254) I
FUND BALANCE (DEFICIT), DECEMBER 31 $ $ $ $
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CITY OF $HOREWOOD, MINNESOTA
ENTERPRISE FUNDS
Enterprise funds are used to'. account for .ope~~ons ~ are. fltlanced and ~perated ill;..a
manner similar to private busines!), . where the costs of providing' services to-the general
puOlic are financed primarily.through user charges. . .
WatelFund - This fund iSiused to account for the activipes of the City water systepl and
to service debt incurred in the b\lilding of infratructure for'fhe system; : .
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Sewer Fund - .This fund is used to accOW\t for the activities of the City sanitary sewer
system.
Recycling Fund - Thi.& fund is\used to account for the activities of the City/recycling; ·
~~~. (
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StormwaterM;magementUtility Fund - This/fund is used to account for the
activities of the ~ity StoJ;lllwa~r Management system: .
(.iquor Fund ~\This fund is u~ to account for the activities of tPe. City'spff..saleIiquor
operation. Tqe-operation consisted of three off-saleliquor store ~tes in 1996. A store
which · was closed tempprarily in January, 1994 due to. a state. highway project was
~opened in ~ differentlocation in February, 1995. Ip. addition, a store location was added.
in Decembe1\,. 1994, when the City assu.l!led the management. of the TonkaBay Liquor'
Store. A portionoLthe net in.come generated by the operation, if a,n:y, is used ~ fund
general fund activities. /
CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
DECEMBER31,1996
(With Comparative Totals for December 31, 1995)
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
Current portion of note receivable
Due from other funds
Inventories, at cost
Prepaid items
TOTAL CURRENT ASSETS
FIXED ASSETS, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL FIXED ASSETS
OTHER ASSETS
Bond discount, net of amortization
Notes receivable, less current portion above
TOTAL OTHER ASSETS
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Deferred revenue
Due to other funds
Current portion of long-term debt
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES
Bonds payable less current portion above
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings
Unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
-42-
Water Sewer
$ 1056041 $ 1 082 948
17 632 14885
470
43 721 181 287
16307 14929
881217 26 000
93 000
4005 2064
2 112 393 1 322 113
6063217 7 560 293
(834 877) (4 123 750 )
5 228 340 3 436 543
21 489
139 500
160989
$ 7501 722 $ 4 758 656
$ 121 805 $ 12356
161 57
125 000
246 966 12 413
2 655 000
2901966 12413
4 427 326 4 390 632
172 430 355611
4 599 756 4 746 243
$ 7501 722 $ 4 758 656
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I Exhibit D-l
Stormwater
I Management Totals
Recycling Utility Liquor 1996 1995
I $ 12 385 $ 189385 $ 52 376 $ 2 393 135 $ 2881217
275 1343 2084 36219 55 107
470 502
9176 12 095 246 279 234 838
I 266 1083 32 585 13 701
1 107 1459 909 783 782 9Il
93 000
I 34 4Il
281 738 281 738 257447
11 021 17090 17737
I 23 209 205 365 347219 4 010 299 4277 871
100260 13 723 770 11 361 121
I (30210) (4 988 837) (4 707 661)
70 050 8734 933 6 653 460
I 21 489 11 799
139 500
I 160 989
$ 23 209 $ 205 365 $ 417 269 $12 906 221 $10 943 130
I $ $ $ 73 768 $ 207929 $ 242 842
17 7277 7512 4092
I 7593
34 4Il
125 000 15000
I 17 81045 340 441 303 938
I 2 655 000 1 920 000
17 81045 2 995 441 2 223 938
I 8817958 8 033 534
23 209 205 348 336 224 1 092 822 685 658
I 23 209 205 348 336 224 9910780 8 719192
$ 23 209 $ 205 365 $ 417 269 $12906221 $10 943 130
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I
CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS I
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1996
(With comparative totals for the year ended December 31, 1995)
Water Sewer I
OPERATING REVENUE
Sales $ $
Less cost of sales I
GROSS PROFIT
Charges for services 259 228 698 882 I
Permits and connection fees 13 450 20 566
GROSS PROFIT AND REVENUE 272 678 719 448
OPERATING EXPENSES I
Personal services 5680 9645
Supplies 5412 1689 I
Repairs and maintenance 8777 6446
Depreciation 80 649 190 154
Professional services 6306 752
Contracted services 49219 31647 I
Communication 1 112 145
Insurance 4575 3540
Water purchases 10492
Utilities 47 739 4440 I
MCES disposal charges 488439
Rent
Advertising
Other 31 173 1203 I
TOTAL OPERATING EXPENSES 251 134 738 100
OPERATING INCOME (LOSS) 21544 (18652) I
NONOPERATING REVENUE (EXPENSES)
General property taxes 16304
Special assessments 59919 I
Interest on investments 75 477 54019
Other income (expense) 19 725 2243
Interest expense (74473 ) I
TOTAL NONOPERATING REVENUE (EXPENSES) 96 952 56 262
INCOME (LOSS) BEFORE TRANSFERS 118496 37610 I
OPERATING TRANSFERS FROM OTHER FUNDS 210 150
OPERATING TRANSFERS TO OTHER FUNDS (10 726) 04201 ) I
NET INCOME (LOSS) 317 920 13 409
RETAINED EARNINGS (DEFICIT), JANUARY 1 (145490) 342 202 I
RETAINED EARNINGS (DEFICIT), DECEMBER 31 $ 172 430 $ 355611
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-44- I
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I Exhibit D-2
Stormwater
I Management Totals
Recycling Utility LiqJlor 1996 1995
$ $ $ 1 705 040 $ 1 705 040 $ 1 473 403
I (1 362 986) (1 362 986) (1165021 )
342 054 342 054 308 382
I 70 535 44491 1 073 136 961 151
34 016 37207
70 535 44491 342 054 1 449 206 1 306 740
I 725 1359 179397 196 806 199 486
8370 15471 21 473
I 15 223 16490
10376 281 179 274 583
424 2381 9863 42 592
I 70 090 13 250 1923 166 129 168 628
1257 1319
13 692 21 807 22 164
10 492 12073
I 24239 76418 67 792
488 439 446 113
113 514 113 514 92 863
9159 9159 9594
I 130 11 825 44 331 25 295
70 945 15033 374 876 1 450 088 1 400 465
I (410) 29 458 (32822) (882 ) (93 725)
16304 17 506
I 59919
550 4448 5902 140396 84 365
(1483) 20 485 8143
I (74473 ) (;3 001)
550 4448 4419 162 631 107 013
I 140 33 906 (28 403 ) 161 749 13 288
11 0 000 320 150 180000
I (39 808) (74 735) (200 000)
140 104 098 (28 403) 407 164 (6712)
I 23 069 1 0 1 250 364 627 685 658 692 370
$ 23 209 $ 205 348 $ 336 224 $ 1 092 822 $ 685 658
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CITY OF SHOREWOOD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1996
(With Comparative Totals for the Year Ended December 31, 1995)
Water
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Other income related to operations
Adjustments to reconcile operating income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization
(Increase) decrease in assets -
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Due from other funds
Inventories
Prepaid items
Increase (decrease) in liabilities -
Accounts payable
Salaries and compensated absences payable
Deferred revenue
Due to other funds
$ 21 544
19 725
81666
2174
32
(5 725)
(I50 936)
(231 )
(26819)
(3)
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds
Operating transfers to other funds
(58 573 )
210 150
(IO 726)
CASH PROVIDED (USED) BY NONCAPITAL FINANCING
ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of fIxed assets
Property taxes levied for debt service
Special assessments collected
199424
849 293
(15000)
(74473 )
(l 780 939)
16304
54 917
CASH PROVIDED (USED) BY CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
(949 898)
75 477
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
(733 570)
1 7896II
$ 1 056041
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired from other funds
$ 483 609
$ 232 500
Additions to contributed capital from note proceeds
-46-
Sewer
$ (I8652)
2243
190 154
11 279
127
6464
1064
10 912
(2)
(7 593)
195996
(24201 )
(24201 )
(21 690)
(21 690)
54019
204 124
878 824
$ 1 082 948
$ 73 314
$
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I Exhibit D-3
Stormwater
I Management Totals
Recycling Utility LiQJlor 1996 1995
$ (410) $ 29 458 $ (32822) $ (882 ) $ (93 725)
I (1483) 20 485 8143
10376 282 196 274 898
I 731 1432 3272 18 888 (15 502)
32 62
(7 205 ) (121) 1483 (11441) 22410
I (664 ) (620 ) (145 756) 2168
34 411 34 411 (34411 )
(24291 ) (24291 ) (104032)
(186) 647 (4303 )
I (13 625) (5381 ) (34913 ) 112 767
(28) 3453 3420 1249
(7 593) 7593
I (34411 ) (34411 ) 34 411
(7 548) 16496 (45 579) 100 792 211 728
I 11 0 000 320 150 180000
(39 808) (74735) (200 000)
I 70 192 245415 (20 000)
I 849 293 1 908 250
(15000) (15000)
(74473 ) (3 001)
I (3 097) (1 805 726) (805536)
16304 17 506
54 917 1 04 662
I (3 097) (974 685) 1 206881
I 550 4448 5902 140396 84 365
(6998) 91 136 (42774 ) (488082) 1482974
I 19383 98 249 95 150 2881217 1 398 243
$ 12 385 $ 189385 $ 52 376 $ 2 393 135 $ 2 881 217
I
$ $ $ $ 556923 $ 81 675
I $ $ $ $ 232 500 $
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CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
Current portion of note receivable
Prepaid items
TOTAL CURRENT ASSETS
FIXED ASSETS, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL FIXED ASSETS
OTHER ASSETS
Bond discount, net of amortization
Note receivable, less current portion above
TOTAL OTHER ASSETS
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries payable
Current portion of long-term debt
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES
Bonds payable less current portion above
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Retainedearnings@efic~
Unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
-48-
Exhibit D-4
1996 1995
$ 1 056041 $ 1 789611
17 632 19806
470 502
43721 37 996
16307
881 217 746 588
93 000
4005 3774
2 112 ~93 2 598 277
6063217 3 798 669
(834 877) (754231)
5 228 340 3 044 438
21 489 11 799
139 500
160 989 II 799
$ 7501 722 $ 5 654 514
$ 121 805 $ 148 624
161 164
125 000 15000
246 966 163 788
2 655 000 1 920 000
2 901966 2 083 788
4 427 326 3716216
172 430 (145490)
4 599 756 3 570 726
$ 7501 722 $ 5 654 514
CITY OF SHOREWOOD, MINNESOTA Exhibit D-5
WATER FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT)
YEARS ENDED DECEMBER 31, 1996 AND 1995
OPERATING REVENUE
Charges for services
Permits and connection fees
1996 1995
$ 259 228 $ 190 100
13 450 8466
272 678 198566
5680 5823
5412 4180
8777 7906
80 649 79617
6306 32 048
49219 43 550
I 1I2 1058
4575 3918
10 492 12073
47 739 38 271
31 173 15 142
251 134 243 586
21 544 (45020)
16304 17 506
59919
75 477 36 397
19 725 81I2
(74473 ) (3001 )
96 952 59014
1I8496 13 994
210 150
(10726)
317 920 13 994
(145490) (159484 )
$ 172 430 $ (145490)
TOTAL OPERATING REVENuE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Other
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES)
General property taxes
Special assessments
Interest on investments
Other income
Interest expense
TOTAL NONOPERATING REVENUE (EXPENSES)
INCOME BEFORE TRANSFERS
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
RETAINED EARNINGS (DEFICIn, JANUARY 1
RETAINED EARNINGS (DEFICIn, DECEMBER 31
-49-
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CITY OF SHOREWOOD, MINNESOTA
WATER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1996 AND 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Other income related to operations
Adjustments to reconcile operating income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization
(Increase) decrease in assets -
Accrued interest receivable
Delinquent taxes receivable
Accounts receivable
Special assessments receivable
Prepaid items
Increase (decrease) in liabilities -
Accounts and contracts payable
Salaries and compensated absences payable
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds
Operating transfers to other funds
CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Issuance of bonds, net of discount
Bond principal paid
Interest paid on revenue bonds
Acquisition of ftxed assets
Property taxes levied for debt service
Special assessments collected
CASH PROVIDED (USED) BY CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired from other funds
Additions to contributed capital from note proceeds
-50-
Exhibit D-6
1996 1995
$ 21 544 $ (45020)
19 725 8112
81 666 79 932
2174 (12224 )
32 62
(5 725) 1063
(150936) 8067
(231) (611 )
(26819) 142 907
(3 ) 154
(58 573 ) 182442
210 150
(10726)
199424
849 293 I 908 250
(I5000) (15000)
(74473 ) (3 00 I )
(1 780 939) (728 495)
16304 17 506
54 917 104 662
(949 898) I 283 922
75 477 36 397
(733 570) I 502761
1 789611 286 850
$1 056 041 $1 789 611
$ 483 609 $
$ 232 500 $
CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
CONWARATIVEBALANCESHEETS
DECEMBER 31, 1996 AND 1995
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
Prepaid items
TOTAL CURRENT ASSETS
FIXED ASSETS, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL FIXED ASSETS
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Deferred revenue
TOTAL CURRENT LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings
Unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
-51-
Exhibit D-7
1996 1995
$ 1 082 948 $ 878 824
14 885 26 164
181287 181414
14929 13 051
26 000 34 342
2064 3 128
1 322 113 1 136 923
7 560 293 7 465 289
(4 123750) 0933596)
3 436 543 3531 693
$ 4 758 656 $ 4 668 616
$ 12 356 $ 1444
57 59
7593
12413 9096
4 390 632 4317318
355611 342 202
4 746 243 4 659 520
$ 4 758 656 $ 4668616
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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, 1996 AND 1995
1996 1995
OPERATING REVENUE
Charges for services $ 698 882 $ 679 832
Permits and connection fees 20 566 28741
TOTAL OPERATING REVENUE 719448 708 573
OPERATING EXPENSES
Personal services 9645 6088
Supplies 1689 1563
Repairs and maintenance 6446 7855
Depreciation 190 154 185401
Professional services 752 8482
Contracted services 31 647 39 840
Communication 145 261
Insurance 3540 5018
Utilities 4440 4252
MCES charges 488 439 446 113
Other 1203 1455
TOTAL OPERATING EXPENSES 738 100 706 328
OPERATING INCOME (LOSS) (18652) 2245
NONOPERATING REVENUE (EXPENSES)
Interest on investments 54019 39 006
Other income 2243
TOTAL NONOPERATING REVENUE (EXPENSES) 56 262 39 006
INCOME BEFORE OPERATING TRANSFERS 37610 41 251
OPERATING TRANSFERS TO OTHER FUNDS (24201 )
NET INCOME 13 409 41251
RETAINED EARNINGS, JANUARY I 342 202 300 951
RETAINED EARNINGS, DECEMBER 31 $ 355611 $ 342 202
-52-
CITY OF SHOREWOOD, MINNESOTA
SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1996 AND 1995
Exhibit D-9
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ (18652) $ 2245
Other income related to operations 2243
Adjustments to reconcile operating income (loss) to net cash provided
(used) by operating activities:
Depreciation 190 154 185401
(Increase) decrease in assets -
Accrued interest receivable 11 279 (5657)
Accounts receivable 127 5628
Special assessments receivable 6464 (5 178)
Prepaid items 1064 1265
Increase (decrease) in liabilities -
Accounts payable 10 912 (38661 )
Salaries and compensated absences payable (2) 49
Deferred revenue (7 593) 7 .593
CASH PROVIDED BY OPERATING ACTIVITIES 195996 152 685
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfer to other funds (24201 )
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fIxed assets (21 690) (l 166)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 54 019 39 006
INCREASE IN CASH AND CASH EQUIVALENTS 204 124 190 525
CASH AND CASH EQUIVALENTS, JANUARY 1 878 824 688 299
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1 082 948 $ 878 824
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Fixed assets acquired from other funds
$ 73314 $ 81675
-53-
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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, 1996 AND 1995
1996 1995
OPERATING REVENUE
Charges for services $ 70 535 $ 46 883
OPERATING EXPENSES
Personal services 725 924
Contracted services 70 090 68 810
Other 130
TOTAL OPERATING EXPENSES 70 945 69 734
OPERATING LOSS (410) (22851 )
NONOPERATING REVENUE (EXPENSES)
Interest on investments 550 1475
NET INCOME (LOSS) 140 (21376)
RETAINED EARNINGS, JANUARY 1 23 069 44 445
RETAINED EARNINGS, DECEMBER 31 $ 23 209 $ 23 069
-55-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-12
RECYCLING FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss $ (410) $ (22851 )
Adjustments to reconcile operating loss to net cash used by operating
activities:
(Increase) decrease in assets -
Accrued interest receivable 731 14367
Accounts receivable (7 205) (61 )
Special assessments receivable (664 ) 10
Increase (decrease) in liabilities -
Accounts payable (4370)
CASH USED BY OPERATING ACTIVITIES (7 548) (12 905)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 550 1475
DECREASE IN CASH AND CASH EQUIVALENTS (6998) (11 430)
CASH AND CASH EQUIVALENTS, JANUARY 1 19383 30813
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 12 385 $ 19383
-56-
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Special assessments receivable
Delinquent
Deferred
CITY OF SHOREWOOD, MINNESOTA
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATNE BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
TOTAL ASSETS
LIABILITIES AND RETAINED EARNINGS
LIABILITIES
Accounts and contracts payable
Salaries payable
TOTAL CURRENT LIABILITIES
RETAINED EARNINGS
Unreserved
TOTAL LIABILITIES AND RETAINED EARNINGS
-57-
Exhibit D-13
1996 1995
$ 189385 $ 98 249
1343 2775
12 095 11 974
1083 403
1459 1 519
$ 205 365 $ 114 920
$ $ 13 625
17 45
17 13 670
205 348 10 1 250
$ 205 365 $ 114 920
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-14
STORMWATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995
OPERATING REVENUE
Charges for services $ 44491 $ 44 336
OPERATING EXPENSES
Personal services 1359 10548
Supplies 6109
Repair and maintenance 729
Professional services 424
Contracted services 13 250 13 625
TOTAL OPERATING EXPENSES 15 033 31 011
OPERATING INCOME 29 458 13 325
NONOPERATING REVENUE
. Interest on investments 4448 4647
INCOME BEFORE OPERATING TRANSFERS 33 906 17 972
OPERATING TRANSFERS FROM OTHER FUNDS 11 0 000 10000
OPERATING TRANSFERS TO OTHER FUNDS (39 808)
NET INCOME 104 098 27 972
RETAINED EARNINGS, JANUARY 1 101 250 73 278
RETAINED EARNINGS, DECEMBER 31 $ 205 348 $ 10 1 250
-58-
CITY OF SHOREWOOD, MINNESOTA Exhibit D-15
STORMW ATER MANAGEMENT UTILITY FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 29 458 $ 13 325
Adjustments to reconcile operating income to net cash provided by
operating activities:
(Increase) decrease in assets -
Accrued interest receivable 1432 (1208)
Accounts receivable (121) 1352
Special assessments receivable (620 ) (731 )
Increase (decrease) in liabilities-
Accounts payable (13 625) 13 625
Salaries payable (28) 45
CASH PROVIDED BY OPERATING ACTIVITIES 16496 26 408
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Operating transfers from other funds 110 000 10 000
Operating transfers to other funds (39 808)
CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 70 192 10 000
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 4448 4647
INCREASE IN CASH AND CASH EQUIVALENTS 91 136 41 055
CASH AND CASH EQUIVALENTS, JANUARY I 98 249 57 194
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 189385 $ 98 249
-59-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-16
LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
1996 1995
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 52376 $ 95 150
Accrued interest receivable 2084 5356
Accounts receivable 1483
Due from other funds 34 411
Inventories, at cost 281 738 257447
Prepaid items 11 021 10 835
TOTAL CURRENT ASSETS 347219 404 682
FIXED ASSETS, AT COST 100 260 97 163
LESS ACCUMULATED DEPRECIATION (30210) (19834)
TOTAL FIXED ASSETS 70 050 77 329
TOTAL ASSETS $ 417 269 $ 482 011
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable $ 73 768 $ 79 149
Salaries and compensated absences payable 7277 3824
Due to other funds 34 411
TOTAL CURRENT LIABILITIES 81 045 117384
RETAINED EARNINGS
Unreserved 336 224 364 627
TOTAL LIABILITIES AND RETAINED EARNINGS $ 417 269 $ 482 011
-60-
CITY OF SHOREWOOD, MINNESOTA Exhibit D-17
LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1996 AND 1995
OPERATING REVENUE
Sales
Less cost of sales
1996 1995
$1 705040 $1473403
(1 362 986) (1165021 )
342 054 . 308 382
179 397 176103
8370 9621
10376 9565
2381 2062
1923 2803
13 692 13 228
24239 25 269
113514 92 863
9159 9594
11 825 8698
374 876 349 806
(32 822) (41424 )
5902 2840
(1483) 31
4419 2871
(28 403 ) (38 553)
170 000
(200 000)
(28 403 ) (68553 )
364 627 433 180
$ 336 224 $ 364 627
.
TOTAL OPERATING REVENUE
OPERATING EXPENSES
Personal services
Supplies
Depreciation
Professional services
Contracted services
Insurance
Utilities
Rent
Advertising
Other
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUE (EXPENSES)
Interest on investments
Other income
TOTAL NONOPERATING REVENUE (EXPENSES)
LOSS BEFORE OPERATING TRANSFERS
OPERATING TRANSFERS FROM OTHER FUNDS
OPERATING TRANSFERS TO OTHER FUNDS
NET LOSS
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
-61-
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CITY OF SHOREWOOD, MINNESOTA Exhibit D-18
LIQUOR FUND
COMPARATNESTATEMENTSOFCASHFLOWS
YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss $ (32 822) $ (41424)
Other income related to operations (1483) 31
Adjustments to reconcile operating loss to net cash provided (used)
by operating activities:
Depreciation 10376 9565
(Increase) decrease in assets -
Accrued interest receivable 3272 3648
Accounts receivable 1483
Due from other funds 34 411 (34411 )
Inventories (24291 ) (104032)
Prepaid items (186) (4957)
Increase (decrease) in liabilities -
Accounts and contracts payable (5381 ) (734 )
Salaries and compensated absences payable 3453 1001
Deferred revenue (34411) 34411
CASH USED BY OPERATING ACTNITIES (45579) (136902)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating transfers from other funds 170 000
Operating transfers to other funds (200 000)
CASH FLOWS USED BY NONCAPITAL FINANCING ACTIVITIES (30000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fIxed assets (3 097) (75 875)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 5902 2840
DECREASE IN CASH AND CASH EQUIVALENTS (42774 ) (239937)
CASH AND CASH EQUIVALENTS, JANUARY I 95 150 335 087
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 52 376 $ 95 150
-62-
$ 20 625 $ 19 980 $ 22 667 $ 25 428
2877 1026 1823 1438
34 411
23 502 21 006 24 490 6 I 277
97 686 88 296 51376 11 I 312
$ 121 188 $ 109302 $ 75 866 $ 172 5&9
CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
Tonka Bay
1996 1995
ASSETS
CURRENT ASSETS
Cash and temporary investments
Accrued interest receivable
Accounts receivable
Due from other funds
Inventories, at cost
Prepaid items
$ 65 40 I
1012
$ 61490
2867
49 822
2722
42351
2594
109302
TOTAL CURRENT ASSETS
FIXED ASSETS, AT COST
LESS ACCUMULATED DEPRECIATION
TOTAL FIXED ASSETS
TOTAL ASSETS
LIABILITIES AND RETAINED EARNINGS
CURRENT LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Due to other funds
11 8 957
2250
(19)
2231
$ 121 188
$ 109302
TOTAL CURRENT LIABILITIES
RETAINED EARNINGS
Unreserved
TOTAL LIABILITIES AND RETAINED
EARNINGS
-63-
Store I
1996 1995
$(101 675) $
112 395
4095
14815
75 875
(14 824)
61051
$ 75 866
1483
98981
3667
104 131
75 513
(7 055)
68 458
$ 172 589
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Exhibit D-19
Store II Total
1996 1995 1996 1995
$ 88 650 $ 33 660 $ 52 376 $ 95 150
1072 2489 2084 5356
1483
34 411 34 411
119 521 116 115 281 738 257447
4204 4 574 11 021 10 835
213 447 191249 347219 404 682
22 135 21 650 100260 97 163
(15367) (12779) (30210) (19834)
6768 8871 70 050 77 329
$ 220 215 $ 200120 $ 417 269 $ 482 011
$ 30476 $ 33741 $ 73768 $ 79 149
2577 1360 7277 3824
34 411
33 053 35 101 81 045 117384
187 162 165019 336 224 364 627
$ 220 215 $ 200120 $ 417 269 $ 482 011
-64-
CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1996 AND 1995
Tonka Bay Store I
1996 1995 1996 1995
OPERATING REVENUE
Sales $ 473 557 $ 439104 $ 517 863 $ 373862
Less cost of good sold (375 769) 045540) (413 067) (294 916)
GROSS PROFIT 97 788 93 564 104796 78 946
OPERATING EXPENSES
Personal services 56 090 57 128 59 976 59 233
Supplies 1445 1050 3524 2828
Depreciation 19 7769 7055
Professional services 877 I OIl 752 40
Contracted services I 186 1440 320 583
Insurance 3779 3676 4492 3185
Utilities 7590 7592 8647 8973
Rent 13 843 13 258 70 954 48 821
Advertising 2396 2606 3682 3396
Other 3518 2421 3673 3534
TOTAL OPERATING EXPENSES 90 743 90 182 163 789 137 648
OPERATING INCOME (LOSS) 7045 3382 (58 993 ) (58702)
NONOPERATING REVENUE (EXPENSES)
Interest on investments 2664 509 14
Other income (expense) (319 ) 2 (943 )
TOTAL NONOPERATING REVENUE
(EXPENSES) 2 345 5Il (943 ) 14
INCOME (LOSS) BEFORE TRANSFERS 9390 3893 (59936) (58688)
OPERATING TRANSFERS FROM OTHER FUNDS 170 000
OPERATING TRANSFERS TO OTHER FUNDS (150000)
NET INCOME (LOSS) 9390 (146 107) (59936) III 312
RETAINED EARNINGS, JANUARY I 88 296 234 403 III 312
RETAINED EARNINGS, DECEMBER 31 $ 97 686 $ 88 296 $ 51 376 $ III 312
-65-
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I Exhibit D-20
I Store II Total
1996 1995 1996 1995
I $ 713 620 $ 660437 $ 1 705 040 $ 1 473 403
(574 150) (524 565) (1,362986) (1165021)
139470 135 872 342 054 308 382
I 63331 59 742 179 397 176103
3401 5743 8370 9621
I 2588 2510 10 376 9565
752 1011 2381 2062
417 780 1923 2803
5421 6367 13 692 13 228
I 8002 8704 24 239 25 269
28 717 30 784 113 514 92 863
3081 3592 9159 9594
I 4634 2 743 11 825 8 698
120344 121 976 374 876 349 806
I 19 126 13 896 (32822) (41424 )
3238 2317 5902 2840
I (221 ) 29 (1483) 31
3017 2 346 4419 2871
I 22 143 16242 (28 403 ) (38 553)
170 000
I (50000) (200 000)
22 143 (33758) (28 403) (68 553)
I
165019 198777 364 627 433 180
I $ 187 162 $ 165019 $ 336 224 $ 364 627
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I -66-
CITY OF SHOREWOOD, MINNESOTA
LIQUOR FUND
COMBINING SCHEDULES OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1996 AND 1995
Tonka Bay Store I
1996 1995 1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 7045 $ 3382 $ (58 993 ) $ (58 702)
Other income (expense) related to operations (319) 2 (943 )
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation 19 7769 7055
(Increase) decrease in assets -
Accrued interest receivable 1855 3958 (1483)
Accounts receivable 1483
Due from other funds
Inventory (7471 ) 4712 (13414) (98981 )
Prepaid items (128) (2 594 ) (428) (3 667)
Increase (decrease) in liabilities -
Accounts and contracts payable 645 (28366) (2 761) 25 428
Salaries and compensated absences payable 1851 2 385 1438
Deferred revenue (34411 ) 34 411
CASH FLOWS PROVIDED (USED) BY
OPERATING ACTIVITIES 3497 (18904) (101 313) (94 ~OI)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Operating transfers from other funds 170 000
Operating transfers to other funds (150000)
CASH FLOWS PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (150000) 170 000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition of fixed assets (2 250) (362 ) (75513)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2664 509 14
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 3911 (168395) (101 675)
CASH AND CASH EQUIVALENTS, JANUARY 1 61 490 229 885
CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 65401 $ 61 490 $ (101675) $
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CITY OF SHO~WOOD,MINNES()TA
Agency funds <lfe e~tablished to account for assets held by the Cit}j$ an agent for others.
Deferred Compensation. ~u.nd- This fund .is u~d;toa~count for e.~loyeepayroU.
deferments and -the related habiltty, that are deposIted WIth 9utsldecompames In accordance
-.with tIre provisions ofItttemal Revenue C(Xie Section 457. I
AGENCY FUNDS
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CITYJ()F SHOREW()OD,'MINNESOTA
\(;&NERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets of a govertlIIlental jprisdiction Which are n6t
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 currenffi$cal year
3. A significant value .
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
DECEMBER 31, 1996 AND 1995
1996
GENERAL FIXED ASSETS
Land
Buildings and structures
Improvements other than buildings
Furniture and equipment
$ 456 826
I 322 073
1314258
1191296
TOTAL GENERAL FIXED ASSETS
$ 4 284 453
INVESTMENT IN GENERAL FIXED ASSETS
General fund
Capital projects funds
$ I 082 870
3 201 583
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
$ 4 284 453
-70-
Exhibit F-I
1995
$ 456 826
I 322 073
I 268 345
I 076774
$ 4 124 018
$ I 076 774
3 047 244
$ 4 124 018
CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
DECEMBER 31, 1996
-71-
Exhibit F-2
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CITY OF SHOREWOOD, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
YEAR ENDED DECEMBER 31, 1996
Exhibit F-3
General General
Fixed Assets Fixed Assets
January 1 Additions Deductions December 31
General government $ 664 938 $ 20961 $ 14865 $ 671 034
Public works 2 135 077 193 839 83 995 2244921
Culture and recreation 1 324 OOJ 44 495 1 368 498
TOTAL GENERAL FIXED ASSETS $ 4124018 $ 259 295 $ 98 860 $ 4 284 453
-72-
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CITY.QF SHOREWQOD, MINNESOTA
. .
/- -.-.,
GENE.. RAL.LONG-TERM DEBT ACCO. U.. NT GROUP
'. . --'f/ J' . ..
General obligation bondsandpther f<inns of long-term debt supported bY_gc(neralrevenues
are obligations of a govemmental0\l1lit as a whole and not i~ individual/{;onstituettt funds.
The amount of unmature4 long--~rm indebtedness w~ch is backed by the full faith and
credit of the government (exclU<fing enterprise fund debt) i~recorded and accounted for in a
separate self-balancing~ount group titled the "General Long- Te1lD, Debt 1\ccOOntGroup."
Also, this debt group indudes certaip liabilities not expected to be liquidareq. with
expendable available financi;il resources, \ .
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CITY OF SHOREWOOD, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
COMPARATIVE STATEMENTS OF GENERAL LONG-TERM DEBT
DECEMBER 31, 1996 AND 1995
1996
AMOUNT AVAILABLE FOR DEBT SERVICE
Debt service funds
$ 503 635
AMOUNTS TO BE PROVIDED
Future tax levies, assessments and tax increments
1 459 209
TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED
$ 1 962 844
GENERAL LONG- TERM DEBT PAYABLE
Compensated absences payable
Lease purchase payable
General obligation special assessment bonds
Tax increment revenue bonds
$ 29 344
311 000
822 500
800 000
TOTAL GENERAL LONG-TERM DEBT PAYABLE
$ 1 962 844
-73-
Exhibit G-l
1995
$ 1419732
1 III 631
$ 2 531 363
$ 21 863
I 589 500
920 000
$ 2 531 363
SPECIAL ASSESSMENT BONDS
G.O. Improvement bonds of 1991
G.O. Improvement bonds of 1991
G.O. Improvement bonds of 1993
TOTAL
TAX INCREMENT REVENUE BONDS
Tax increment revenue bonds of 1991
REVENUE BONDS
G.O. Water Revenue bonds
G.O. Water Revenue bonds
TOTAL
TOTAL
CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF BONDS PAYABLE
DECEMBER 31, 1996
Interest Rates
5.20-5.85
8.00
3.75-4.80
9.00
3.90-5.50
4.00-5.40
-74-
Issue Date
11-01-91
9-01-91
12-01-93
5-01-91
11-01-95
11-01-96
Final
Maturity
Date
2-01-02
2-01-97
2-01-04
2-01-00
2-01-11
2-01-12
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CITY OF SHOREWOOD, MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS
DECEMBER 31, 1996
~
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total
*
Total Bonds
Principal Interest
$ 467 500
520 000
515000
520 000
310000
300 000
205 000
210 000
180 000
190 000
185000
185 000
185 000
190 000
180 000
60 000
$ 295194
333 492
343 087
355 636
III 515
96 553
84 334
74570
65 244
56 240
46 945
37 603
28 040
18 115
8135
1620
$4 402 500
$1 956323
Tax increment collections will be remitted to the bond holders. Bonds will periodically be called in numerical sequence
and redeemed at their accredited value as tax increment collections allow.
-76-
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Exhibit I-I
G.O. Special Tax increment G.O. Water
Assessment Bonds Revevue Bonds* Revenue Bonds
Principal Interest Pri . l' Interest Principal Interest
nClpa ..
$ 142500 $ 39 134 $ 200 000 $ 136 869 $ 125 000 $ 119 191
135 000 32 250 200 000 167,859 185000 133 383
135 000 25 443 200 000 201 71 0 180 000 115 934
130 000 18588 200 000 229 028 190 000 108 020
125 000 11 776 185 000 99 739
115 000 5139 185 000 91414
20 000 1430 185 000 82 904
20 000 480 190 000 74 090
180 000 65 244
190 000 56 240
185 000 46 945
185000 37603
185000 28 040
190 000 18 115
180 000 8135
60 000 1620
$ 822 500 $ 134 240 $ 800 000 $ 735 466 $2 780 000 $1086617
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Fiscal
Year
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
CITY OF SHOREWOOD, MINNESOTA Table 1
GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION
LAST TEN FISCAL YEARS
Total General Public Public Culture and Misc/
Expenditures Government Safety Works Recreation Transfers
$1651927 $ 569 098 $481 603 $ 532 902 $ 68 324 $
1 898 594 646 923 523 717 669 990 57 964
1 794 684 610659 503 542 570 981 83 502 26 000
2065011 616929 532658 799 543 115 881
2241781 665 152 548 343 375 406 142 168 510712
2301 950 654 085 571 077 434015 116 173 526 600
2 184 260 668 410 580 153 436 224 119 473 380 000
2 536 943 755 097 618047 433 699 128 600 601 500
2326231 723 098 650 703 432 759 115 446 404 225
2479 151 782 466 689 904 472 607 109 988 424 186
-78-
CITY OF SHOREWOOD, MINNESOTA Table 2
GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE
LAST TEN FISCAL YEARS
Total General Licenses
Fiscal General Fund Property and Inter- Mise!
Year Revenues Taxes Permits Governmental Fines Transfers
1987 $1 837056 $ 993 086 $ 282 100 $ 364 022 $ 103785 $ ,94 063
1988 1 984 148 1 087 099 330 408 368 288 91 385 106 968
1989 1 976961 1118886 207 129 405 022 105 244 140680
1990 2 367 995 1 437 140 203828 273 780 124 234 329013
1991 2 237 115 1627874 168 560 153 681 101200 185 800
1992 2 307 389 1 576 158 175 123 283 689 89 960 182 459
1993 2429910 1 515633 247 557 426 102 70 135 170 483
1994 2531339 1 487 398 256243 441 040 73 998 272 660
1995 2 378009 1 489 822 184857 440 720 68 765 193845
1996 2 457 755 1 569 653 205 459 427 468 80 826 174349
-79-
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CITY OF SHOREWOOD, MINNESOTA Table 3
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1) Percentage
Collection Percentage Collection of Total
Fiscal Total of Current of Levy of Prior Total Collections
Year Levv Year's Levv Collected Year's Levv Collections to Levv
1987 $1 254420 $1 211 819 96.60% $ 32 265 $1244084 99.18%
1988 1 293 689 1 236 536 95.58 27 898 1 264 434 97.74
1989 1 300 881 1 249 332 96.04 46 405 1 295 737 99.61
1990 1 684 576 1 602 385 95.12 48 448 1 650 833 98.00
1991 1 856 988 *1793402 96.58 41 801 1 835 203 98.83
1992 1 864 577 1 819238 97.57 55917 1 875 155 100.57
1993 1 932 454 1 908 428 98.76 51464 1 959 892 101.42
1994 1 518735 I 505212 99.11 13 886 1519098 100.02
1995 1518 108 I 501 389 98.90 13 999 1 515 388 99.82
1996 1 598713 1 577 353 98.66 16 946 1 594 299 99.72
(1)
Includes state paid property tax credits
*
Includes $66,971 state aid reduction from the Homestead and Agricultural Credit Aid.
Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State.
Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of
the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local
government.
-80-
CITY OF SHOREWOOD, MINNESOTA
ASSESSED VALVA nON, TAX LEVIES AND MILL RATES
(shown by year of tax collectibility)
1996 1995 1994 1993
(1) & (2) (1) & (2) (1) & (2) (1) & (2)
Assessed valuationtrax capacity $9115960 $8 045 468 $7396 104 $7092917
Contribution to fiscal disparities pool (178279) (185232) (205 973) (227 686)
Receivable from fiscal disparities pool 332 110 310 337 375 309 396081
Tax increment (166094 ) (22 195) (317)
Taxable valuationtrotal tax capacity $9 103 697 $8 148378 $7565 123 $7261312
Tax levies
General
Debt service
(3)
$1573930 $1 491 990 $1 491 888 $1909253
24 783 26 118 26 847 23 201
$1 598713 $1518108 $1518735 $1932454
Total
Mill ratesrrax
Capacity Rate
General
Debt service
18.256Rate
.215
19.655Rate
.249
20.638Rate
.159
17.252Rate
.179
Total
19.904Rate
20.797Rate
17.431Rate
18.471Rate
(1) As a result of 1988 legislation assessed valuation has been replaced by tax capacity valuations. It is calculated based upon
a state mandated computation from the estimated market value. The term, mill rate, has been replaced with the term, tax
capacity rate, as a result of the 1988 legislation. 1986-1988 information is stated in terms of assessed valuation and mill
rates. 1989-1995 information is stated in terms of tax capacity and tax capacity rates.
(2) The debt service levy includes $8,508 for 1996, $8,568 for 1995, $8,022 for 1994, $8,526 for 1993 and $8,414 for 1992,
levied for the retirement of Storm Sewer District No.2 improvement bonds. Storm Sewer District No.2 was established
by the City of Shorewood in 1991. This portion of the debt service tax levy is only levied within Storm Sewer District No.
2 to retire the $31,000 bond issue used to fmance the improvements within the District and is not reflected in the tax rates
above. Table 5 reports the tax rate of this District separately.
(3) Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the
State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be
reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of
taxation by the local government.
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY TAX MILL RATESrrAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(pER $1000 OF ASSESSED VALUE FOR YEARS 1987-1988
AND TAX CAPACITY IN 1989-1996)
Year (1)
Taxes School District Watershed District
Payable City County No. 276 No. 277 No.3 No.4 Miscellaneous
1987 23.643 29.356 62.968 54.982 .133 .474 5.459
1988 22.825 31.667 65.440 58.550 .092 .570 5.988
1989 16.509 (2) 27.101 59.285 49.139 .075 .445 5.387
1990 20.299 (2) 27.916 53.658 43.434 .120 .436 5.121
1991 20.454 (2) 30.114 56.401 46.828 .131 .449 6.855
1992 20.164 (2) 34.327 64.530 56.643 .142 .490 5.481
1993 20.797 (2) 35.839 75.275 60.069 .668 .781 5.532
1994 19.904 (2) 37.441 77.323 67.785 .334 .707 5.724
1995 18.471 (2) 37.454 76.139 66.441 2.332 .762 5.847
1996 17.431 (2) 37.270 76.340 62.418(3) 1.533 .864 6.390
(1) Includes vocational school
(2) Information for 1989-1996 is stated in terms of tax capacity rates due to 1988 legislative changes as explained in Table 4.
(3) Includes market value levy of .107.
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Table 5
Totals ",..c
School District No. 276 School
Storm Watershed Dist. No. 277,
Sewer Watershed Watershed District No.4 Watershed
District District District Storm Sewer District
No.2 No.3 No.4 District No.2 No.3
121.559 121.900 121.900 113.573
126.012 126.490 126.490 119.122
108.357 108.727 108.727 98.211
107.114 107.430 107.430 96.890
113.955 114.273 114.273 104.382
17.792 124.649 124.997 142.789 116.762
13.437 138.111 138.224 151.661 122.905
15.495 140.726 141.099 156.594 131.188
15.353 140.243 138.673 154.026 130.545
13.956 138.964 138.295 152.251 125.042
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CITY OF SHOREWOOD, MINNESOTA
PRINCIPAL TAXPAYERS
DECEMBER 31, 1996
Table 6
Percentage
1996 Tax of Total
Tax,payer Type of Business Capacity Tax Capacity
Northern States Power Company Utility $ 123 639 1.36%
Ryan Construction Company Shopping Center 75 118 .83
Minnetonka Country Club Country Club 73 375 .81
Minnegasco Utility 65 325 .72
Two S Properties Commercial 41 663 .46
MFT, Inc. Residential 32 100 .35
Waterford Partners, LLC Commercial 29 169 .32
Individual Residential 23 600 .26
Individual Residential 22 380 .25
Fina Serve, Inc. Commercial 22 408 ~
Total $ 508 777 5.61
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Fiscal
Year
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
CITY OF SHOREWOOD, MINNESOTA Table 7
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1) Percentage
Collection Percentage Collection of Total
Total of Current of Levy of Prior Total Collections
Levy Year's Levy Collected Year's Levy Collections to Levy
$ 551886 $ 539633 97.78% $ 32 122 $ 571 755 103.60%
644 367 637 874 98.99 33 724 671 598 104.23
500 116 497 733 99.52 66916 564 649 112.90
457 384 444 080 97.09 53 452 497 532 108.78
365 577 345 886 94.61 28 677 374 563 102.46
362 352 317 103 87.51 19461 336 564 92.88
231 800 222 842 96.14 47 372 270214 116.57
198729 185061 93.12 6025 191 086 96.15
170 157 159018 93.45 12 896 171 914 101.03
233 219 197667 84.76 6660 204 327 87.61
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1996
Table 8
Market Value
$ 517 983900
Debt Limit: 2.0% of market value (Note A)
Amount of Debt Applicable to Debt Limit:
$ 10359678
Total Bonded Debt
Less, (Note B)
Special Assessment Bonds
General Obligation Water Revenue Bonds
Tax Increment Revenue Bonds
$ 4 402 500
(822 500)
(2 780 000)
(800 000)
Total Debt Applicable to Debt Limit
Legal Debt Margin
$ to 359 678
Note (A): M.S.A. Section 475.53 (Limit on Net Debt)
"Subdivision l. 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 of2.0 percent of the market value of taxable property in
the municipality."
Note (B): M.S.A. Section 162.18 (Bond: Municipal State Aid)
"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."
M.S.A. Section 475.51 (Defmitions:)
"Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the
following:
(I)
(2)
(3)
(4)
(5)
(6)
(7)
Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied
upon property specially benefited thereby, including those which are general obligations of the municipality issuing
them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments.
Warrants or orders having no defmite or fixed maturity.
Obligations payable wholly from the income from revenue-producing conveniences.
Obligations issued to create or maintain a permanent improvement revolving fund.
Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or
power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be
derived.
Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations
other than those deductible under this subdivision.
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."
*
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
Table 9
Fiscal
fim:
(1) Assessed
Valuerrax
Capacity
Ratio of Net
Bonded Debt
to Assessed
Values/
Tax Capacity
Net
Bonded
Debt
Per Capita
Less Amount
Reserved for
Debt Service
Estimated
Population
(2) Gross
Bonded Debt
Net
Bonded Debt
1987
1988
$53 059674
56 589 857
4921
5094
$4 975 000
4 530 000
$ 2 044 326
2 688 009
$2 930 674
I 841 991
.0552: 1
.0325: 1
595.54
361.60
1989 5815 7 833 998 2 990 000 1510 303 1479697 .1889:1 254.46
1990 5917 7 197406 2 720 000 1 902 837 817163 .1135: 1 138.10
1991 6000 8 070 339 3411 000 2311 859 1 099 141 .1362: 1 183.19
1992 6135 7 859 115 2 496 000 1 742 742 753 258 .0958: 1 122.78
1993 6322 7261312 2 546 500 1999 197 547 303 .0754: 1 86.57
1994 6430 7 565 123 1 850 500 1 485 579 364 921 .0482: 1 56.75
1995 6614 8 148378 3 524 500 1419732 2 104768 .2583:1 318.17
1996 6794 9103697 3 602 500 503 635 3 098 865 .3404:1 456.12
(1)
As a result of 1988 legislation, assessed valuation has been replaced by tax capacity valuations. It is calculated based
upon a state mandated computation from the estimated market value. The term, mill rate, has been replaced with the
term, tax capacity rate, as a result of the 1988 legislation. 1986-1988 information is stated in terms of assessed valuation
and mill rates. 1989-1996 information is stated in terms of tax capacity and tax capacity rates.
(2)
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. The $920,000 Tax Increment Revenue
Bonds are not included in the gross bonded debt as they are not backed by the full faith and credit of the City.
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CITY OF SHOREWOOD, MINNESOTA Table 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES*
Percent of
Debt Service
Total Total General to General
Year Principal Interest Debt Service Ex,penditures* EXJ;)enditures
1987 $ 1 840 000 (2) $ 273 709 $ 2 113 709 $ 1651 927 127.95%
1988 435 000 274 636 709 636 1 898 594 37.38
1989 2 625 000 (3) 253 113 2878115 1 794 684 160.37
1990 260 000 175098 435 098 2065011 21.07
1991 290 000 173 495 463 495 2241 781 20.68
1992 905 000 167 163 1 072 163 2301950 46.58
1993 264 500 141 889 406389 2184260 18.61
1994 681 000 (4) 120862 801 862 2 536 943 31.61
1995 231 000 99 823 330 823 2 326 231 14.22
1996 767000 (5) 72 461 839461 2479151 33.86
(1)
Excludes G.O. Bonds reported in Enterprise Funds and the $920,000 Tax Increment Revenue Bonds are not included in
the gross bonded debt as they are not backed by the full faith and credit of the City.
(2)
(3)
(4)
(5)
Principal includes bonds refunded in 1987
Principal included bonds defeased in 1989
Principal includes bonds called in 1994
Principal included bonds called in 1996
*
Includes General Fund only
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CITY OF SHOREWOOD, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 1996
Table 11
City of
Percent of Shorewood
Net Debt Debt Applicable Share
Total Debt Outstanding to City of Debt
Direct Debt*
City of Shorewood $ 3 602 500 $ 3 098 865 100.00% $ 3 098 865
Overlapping Debt
Hennepin County 190955000 60 904 428 .97 588 644
Hennepin Suburban Park District 16460000 11 615904 1.31 152 692
School District #276 61240000 10470300 22.66 2 372 242
School District #277 13 700 000 12428521 2.10 260514
Metropolitan Council 384 835 000 61080046 ~ 327 940
Total Overlapping Debt 667 190 000 156499 199 ~ 3 702 032
Total Direct and Overlapping Debt $670 792 500 $159598 064 4.26% $ 6 800 897
*
Direct debt includes all debt backed by the full faith and credit of the City even though it will be financed in part by special
assessments or enterprise fund revenues. Tax increment revenue bonds supported only by the tax increments generated
within the TIF District are excluded from this computation consistent with Table 9.
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CITY OF SHOREWOOD, MINNESOTA Table 12
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net Ratio of Net
Fiscal Gross (1) Revenue Debt Service Revenue to
Year Revenue Expenses Available Principal Interest Total Debt Service
1987 $ 108043 $ 81 642 $ 26401 $ 10 000 $ 9578 $ 19578 1.349 to 1
1988 158474 135 897 22 577 10 000 8834 18 834 1.199 to 1
1989 176719 11 0 987 65 732 10 000 8125 18 125 3.627 to 1
1990 192 682 116289 76 393 10000 7293 17 293 4.418 to 1
1991 172 569 126614 45 955 10000 6493 16493 2.786 to 1
1992 199 891 125714 74 177 10 000 5823 15 823 4.688 to 1
1993 172 624 139490 33 134 10 000 4860 14860 2.230 to 1
1994 262 892 159179 103 173 15 000 4035 19035 5.449 to 1
1995 198566 166970 31 596 15 000 3486 18486 1.710 to 1
1996 272 678 170 485 102 193 15 000 74473 89 473 1.142 to 1
(1)
Excluding depreciation and interest on bonds
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CITY OF SHOREWOOD, MINNESOTA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(1)
Commercial (1)
Construction Residential Construction
Fiscal Number
Year Value of Units Value
1987 $ 163 $ 23 397 136
1988 401 004 157 29 040 667
1989 89 16949 136
1990 20 000 82 16252990
1991 69 14044 120
1992 55 10899687
1993 102 17941776
1994 960 000 86 16530925
1995 2 030 000 40 10 167210
1996 1 350 000 37 9 393 436
Sources
(1) City Planning and Inspection Department
(2) County Assessor's Office
(3) 1st State Bank of Excelsior
(Bank deposits are not shown for years 1987-1995 as no banks are located within the City limits during this period.)
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(2) Property Value
Commercial Residential Total
$ 10 317 900 $ 197382800 $ 207 700 700
11 167900 217337000 228 504 900
11 351 300 253 363 500 264714800
11 820 800 299 565 500 311 386 300
11 997 100 341 843200 353 840 300
12081 200 370 575 700 382656900
11 307 900 391 057000 402 364 900
11 338 700 413 780300 425 119 000
9 793 000 453616 100 463 409 100
10562200 517983900 528 546 100
Table 13
(3)
Bank Deposits
$
40 895 000
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Year of incorporation
Form of government
Fiscal year begins
Area of city
Population
1995 Estimated
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 1996
Number of permits
Value
CITY OF SHOREWOOD, MINNESOTA
MISCELLANEOUS STATISTICS
DECEMBER 31, 1996
Table 14
1956
Council-Administrator
Adopted May 14, 1956
January 1
6.0 Square Miles
6,794
5,917
4,646
4,223
38.1
9.3
1.7
2.7
15
$65.00/quarter
55.7
174
610
$16,288,483
Fire protection: Contracted services with Mound and Excelsior
Police protection: Contracted services with South Lake Minnetonka Police Department
Parks
Number
Acres
Water
Number of connections
Average daily consumption
Miles of watermain
Daily capacity
Number of fire hydrants
Water rate per thousand gallons
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
985
267,800 gallons
14.7
4,680,000 gallons
165
$1.4511000 gallons
20
2U
~
5,066
4,262
84.1%
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