102896 CC Handout
OFFICIAL STATEMENT DATED OCTOBER 14,1996
NEW ISSUE
Rating: Requested from Moody's
Investors Service
In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under existing laws, regulations, rulings and decisions assuming
compliance with the covenants set forth in the Resolution, the interest on the Bonds is not includable in the gross income of the
owners thereof for federal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax
purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax or the computation of
Minnesota alternative minimum tax imposed on individuals, trusts and estates. Interest on the Bonds is includable in the calculation
of certain federal and Minnesota taxes imposed on corporations. (For a description of related issues see "Tax Exemption" herein.)
$860,000
City of Shorewood, Minnesota
General Obligation Water Revenue Bonds, Series 1996A
(Book Entry Only)
Dated Date: November 1, 1996
Interest Due: Each February 1 and August 1,
commencing August 1, 1997
The Bonds will mature February 1 as follows:
1998 $55,000
1999 $55,000
2000 $60,000
2001 $55,000
2002 $60,000
2003 $55,000
2004 $60,000
2005 $55,000
2006 $60,000
2007 $55,000
2008 $60,000
2009 $55,000
2010 $60,000
2011 $55,000
2012 $60,000
The City may elect on February 1, 2006, and on any day thereafter, to prepay Bonds due on or after
February 1, 2007 at a price of par plus accrued interest.
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The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power
to levy direct general ad valorem taxes. In addition, the City pledges net revenues of the City's Water Utility.
The proceeds will be used to finance improvements to the City's Water Utility.
Proposals must be for not less than $848,820 and accrued interest on the total principal amount of the Bonds
and must be accompanied by a good faith deposit in the form of a certified or cashier's check or a Financial
Surety Bond in the amount of $8,600, payable to the order of the City. Proposals shall specify rates in
integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Award of the Bonds shall be on
the basis of True Interest Cost (TIC).
The Bonds will be bank-qualified tax-exempt obligations pursuant to Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals.
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in
the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as securities
depository of the Bonds. Individual purchases may be made in book-entry form only, in the principal amount
of $5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in
the Bonds purchased. (See "Book Entry System" herein.) The City will name the Registrar and will pay for
registration services. Certificates will be available for delivery at DTC within 40 days after award.
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PROPOSALS RECEIVED: October 28,1996 (Monday) until 12:00 Noon, Central Time
AWARD: October 28, 1996 (Monday) at 7:30 P.M., Central Time
PUBLIC FINANCE ADVISORS
Further information may be obtained from SPRINGSTED
Incorporated, Financial Advisor to the Issuer, 85 East Seventh
Place, Suite 100, Saint Paul, Minnesota 55101 (612) 223-
3000
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SPRINGSTED
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission,
this document, as the same may be supplemented or corrected by the Issuer from time to time
(collectively, the "Official Statement"), may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, except for the omission of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Obligations, together with any other
information required by law, shall constitute a "Final Official Statement" of the Issuer with
respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall,
on and after the date thereof, be fully incorporated herein and made a part hereof by reference.
By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the senior managing underwriter of the syndicate to which
the Obligations are awarded copies of the Official Statement and the addendum or addenda
described in the preceding paragraph in the amount specified in the Terms of Proposal.
The Issuer designates the senior managing underwriter of the syndicate to which the
Obligations are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter delivering a Proposal with
respect to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall
accept such designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Obligations for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
No dealer, broker, salesman or other person has been authorized by the Issuer to give any
information or to make any representations with respect to the Obligations other than as
contained in the Official Statement or the Final Official Statement, and, if, given or made, such
other information or representations must not be relied upon as having been authorized by the
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer and, while believed to
be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents
are qualified in their entirety by reference to the particular document, the full text of which may
contain qualifications of and exceptions to statements made herein. Where full texts have not
been included as appendices to the Official Statement or the Final Official Statement, they will
be furnished on request.
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TABLE OF CONTENTS
Terms of Proposal.............................................................................................................
Schedule of Bond Years ................................................ ...................................................
I ntroductory Statement......................................................................................................
Continuing Disclosure.......................................................................................................
General Description..........................................................................................................
Authority and Purpose......................................................................................................
Security and Financing.....................................................................................................
Future Financing................................ ...............................................................................
Litigation................................................... ........................................................ ................
Legality.................................... ....................................... ..................................................
Tax Exemption..................................................................................................................
Bank-Qualified Tax-Exempt Bonds ......... .......................................... ................................
Rating................ ...............................................................................................................
Financial Advisor......................................... ............................................ .... ............... ......
Certification. .................................................................................... ........ ...........................
City Property Values................ ....... ..................................................................................
City Indebtedness.............................................................................................................
City Tax Rates, Levies and Collections.............................................................................
Funds on Hand .... ........................ ....... ....................... ............. .......... ........ ................. .......
City Investments...............................................................................................................
General Information Concerning the City..........................................................................
Governmental Organization and Services...................... ....... .... ......... ........ ..... .... ...... ........
Proposed Form of Legal Opinion ............................................................................
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ......................................................................
Annual Financial Statements .. .......... .......... ........... ........ ...... ....... ............... ....... ......
Page( s)
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1
1-3
3
3-4
4
4
4
4-5
5
6
6
6
7-8
8-10
10
11
11
12-13
13-14
Appendix I
Appendix II
Appendix III
..
Proposal Forms .... ....... .... ..... ........... ................ ................. ... ...... ... ... ......... ...... ........
Inserted
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS Will BE RECEIVED ON THE FOllOWING BASIS:
TERMS OF PROPOSAL
$860,000
CITY OF SHOREWOOD, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1996A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, October 28, 1996 until 12:00 Noon.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted.
Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one-hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. Neither the City nor
Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders
are advised that each Proposal shall be deemed to constitute a contract between the bidder
and the City to purchase the Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated November 1, 1996, as the date of original issue, and will bear interest
payable on August 1 and February 1 of each year, commencing August 1, 1997. Interest will
be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature
February 1 in the years and amounts as follows:
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1998
1999
2000
2001
$55,000
$55,000
$60,000
$55,000
2002
2003
2004
2005
$60,000
$55,000
$60,000
$55,000
2006
2007
2008
2009
$60,000
$55,000
$60,000
$55,000
2010
2011
2012
$60,000
$55,000
$60,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bonds,
representing the aggregate principal amount of the Bonds maturing in each year, will be
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registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2006, and on any day thereafter, to prepay Bonds due on or
after February 1, 2007. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge net
revenues of the City's water utility. The proceeds will be used to finance improvements to the
City's water utility.
TYPE OF PROPOSALS
Proposals shall be for not less than $848,820 and accrued interest on the total principal amount
of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form
of a certified or cashier's check or a Financial Surety Bond in the amount of $8,600, payable to
the order of the City. If a check is used, it must accompany each proposal. If a Financial
Surety Bond is used, it must be from an insurance company licensed to issue such a bond in
the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the Issuer. No proposal
can be withdrawn or amended after the time set for receiving proposals unless the meeting of
the Issuer scheduled for award of the Obligations is adjourned, recessed, or continued to
another date without award of the Obligations having been made. Bonds of the same maturity
shall bear a single rate from the date of the Bonds to the date of maturity. No conditional
proposals will be accepted. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates
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must be in ascending order. Obligations of the same maturity shall bear a single rate from the
date of the Bonds to the date of maturity. No conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling. The City will reserve the right to:
(i) waive non-substantive informalities of any proposal or of matters relating to the receipt of
proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any
proposal which the City determines to have failed to comply with the terms herein.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven,
Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation
certificate. On the date of settlement payment for the Bonds shall be made in federal, or
equivalent, funds which shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall
have been made impossible by action of the City, or its agents, the purchaser shall be liable to
the City for any loss suffered by the City by reason of the purchaser's non-compliance with said
terms for payment.
CONTINUING DISCLOSURE
Participating underwriters need not comply with the continuing disclosure requirements of
Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934 (the "Rule"), because the offering is in a principal amount less than
$1,000,000. Consequently, the City will not enter into any undertaking to provide continuing
disclosure of any kind with respect to the Bonds.
OFFICIAL STATEMENT
"
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
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senior managing underwriter of the syndicate to which the Bonds are awarded 35 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated September 9, 1996
BY ORDEROF THE CITY COUNCIL
Isl Mr. James Hurm
Administrator/Clerk
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SCHEDULE OF BOND YEARS
$860,000
CITY OF SHOREWOOD, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1996A
Year
Principal
Bond Years
Cumulative
Bond Years
1998
$55,000
68.7500
68.7500
1999
$55,000
123.7500
192.5000
2000
$60,000
195.0000
387.5000
2001
$55,000
233.7500
621.2500
2002
$60,000
315.0000
936.2500
2003
$55,000
343.7500
1,280.0000
2004
$60,000
435.0000
1,715.0000
2005
$55,000
453.7500
2,168.7500
2006
$60,000
555.0000
2,723.7500
2007
$55,000 c
563.7500
3,287.5000
2008
$60,000 c
675.0000
3,962.5000
2009
$55,000 c
673.7500
4,636.2500
2010
$60,000 c
795.0000
5,431.2500
2011
$55,000 c
783.7500
6,215.0000
2012
$60,000 c
915.0000
7,130.0000
Average Maturity: 8.29 Years
Bonds Dated: November 1, 1996
Interest Due:
August 1, 1997 and each February 1 and August 1 to maturity.
Principal Due:
February 1, 1998-2012 inclusive.
Optional Call:
Bonds maturing on or after February 1, 2007 are callable
commencing February 1, 2006 and any date thereafter at par.
(See Terms of Proposal.)
c: subject to optional call
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OFFICIAL STATEMENT
$860,000
CITY OF SHOREWOOD, MINNESOTA
GENERAL OBLlGA TION WATER REVENUE BONDS, SERIES 1996A
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement provides certain information with respect to the issuance of $860,000
General Obligation Water Revenue Bonds, Series 1996A (the "Bonds" or the "Issue") by the
City of Shorewood, Minnesota (the "City"). The Bonds are general obligations of the City for
which the City pledges its full faith and credit and power to levy direct general ad valorem taxes
without limit as to rate or amount.
Inquiries may be addressed to Mr. Alan J. Rolek, Finance Director/Treasurer, City of
Shorewood, 5755 Country Club Road, Shorewood, Minnesota 55331, or by telephoning (612)
474-3236. Information may also be obtained from Springsted Incorporated, 85 East Seventh
Place, Suite 100, St. Paul, Minnesota 55101-2143 or by telephoning (612) 223-3000. If
information of a specific legal matter is desired, requests may be directed to Mr. Curtis A.
Pearson, Kennedy & Graven, Chartered, 470 Pillsbury Center, Minneapolis, Minnesota, Bond
Counsel, (612) 337-9300.
CONTINUING DISCLOSURE
The Bonds are exempt from continuing disclosure requirements of Rule 15c2-12 of the
Securities Exchange Act of 1934 because they are issued in the aggregate principal amount of
less than $1,000,000. Consequently, the City is not covenanting to provide annual financial
information, notices of certain material events or any other disclosure which might otherwise be
required by that Rule.
GENERAL DESCRIPTION
The Bonds are dated as of November 1, 1996 and will mature annually on February 1, as set
forth on the cover of this Official Statement. The Bonds are issued in book entry form. Interest
on the Bonds is payable August 1, 1997 and semi-annually thereafter. on February 1 and
August 1. Interest will be payable to the holder (initially Cede & Co.) registered on the books
of the registrar (the "Registrar") on the fifteenth day of the calendar month next preceding such
interest payment date. Principal of and interest on the Bonds will be paid as described in the
section herein entitled "Book Entry System."
Optional Redemption
The City may elect on February 1, 2006, and on any day thereafter, to prepay the Bonds due
on or after February 1, 2007. Redemption may be in whole or in part, and if in part, at the
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option of the City and in such order as the City shall determine. Redemption of the Bonds
shall be at a price of par plus accrued interest.
Book Entry System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository
for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of
Cede & Co. (DTC's partnership nominee). One fully-registered certificate will be issued for
each maturity of the Bonds, in the aggregate principal amount of each maturity, and will be
deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code, and a "clearing agency" registered pursuant to the provisions of
Section 17 A of the Securities Exchange Act of 1934. DTC holds securities that its participants
("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of
securities transactions, such as transfers and pledges in deposited securities through
electronic computerized book entry changes in Participants' accounts, thereby eliminating the
need for physical movement of securities certificates. Direct Participants ("Direct Participants")
include securities brokers and dealers, banks, trust companies, clearing corporations and
certain other organizations. DTC is owned by a number of its Direct Participants and by the
New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National
Association of Securities Dealers, Inc. Access to the DTC system is also available to others
such as securities brokers and dealers, banks and trust companies that clear through or
maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants"). The Rules applicable to DTC and its Participants are on file with the Securities
and Exchange Commission.
Purchases of Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Bonds on DTC's records. The ownership interest of each
actual purchaser of each Bond ("Beneficial Owner") is in tum to be recorded on the Direct and
Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC
of their purchase, but Beneficial Owners are expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
Transfers of ownership interest in the Bonds are to be accomplished by entries made on the
books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interest in the Bonds, except in the event that use of
the book entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered
in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and
their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC
has no knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the
identity of the Direct Participants to whose accounts such Bonds are credited, which mayor
may not be the Beneficial Owners. The Participants will remain responsible for keeping
account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be govemed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time.
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Redemption notices shall be sent to Cede & Co. If less than all of the Bonds within an issue
are being redeemed, OTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such issue to be redeemed.
Neither OTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual
procedures, OTC mails an Omnibus Proxy to the Bond Registrar as soon as possible after the
record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those
Direct Participants to whose accounts the Bonds are credited on the record date (identified in a
listing attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to OTC. OTC's practice is to credit
Direct Participants' accounts on the payable date in accordance with their respective holdings
shown on OTC's records unless OTC has reason to believe that it will not receive payment on
the payable date. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of OTC, the Registrar or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of principal and interest to OTC is
the responsibility of the City, disbursement of such payments to Direct Participants shall be the
responsibility of OTC, and disbursement of such payments to the Beneficial Owners shall be
the responsibility of Direct and Indirect Participants.
OTC may discontinue providing its services as securities depository with respect to the Bonds
at any time by giving reasonable notice to the City or the Registrar. Under such
circumstances, in the event that a successor securities depository is not obtained, Bonds are
required to be printed and delivered.
The City may decide to discontinue use of the system of book entry transfers through OTC (or
a successor securities depository). In that event, Bonds will be printed and delivered.
The information in this section concerning OTC and OTC's book entry system has been
obtained from sources that the City believes to be reliable, but the City takes no responsibility
for the accuracy thereof.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. The
proceeds of the Bonds will be used to finance improvements to the City's Water Utility system.
The composition of the Bonds is as follows:
Total Project Costs*
Less: Street Reconstruction Fund Contribution
Sanitary Sewer Fund Contribution
Total Bond Issue
$1,070,150
(206,350)
(3,800)
$ 860,000
*
Includes costs of issuance and allowance for discount bidding.
SECURITY AND FINANCING
In addition to its general obligation pledge, the City pledges net revenues of its Water Utility for
payment of debt service on the Bonds. Net revenues of the Water Utility are also pledged to
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payment of the City's General Obligation Water Revenue Bonds, Series 1995A, dated
November 1, 1995. The City covenants that it will charge rates sufficient for the operation and
maintenance of the Water Utility and to generate net operating revenues that will meet debt
service requirements on the Bonds and such other bonds payable from net revenues of the
Water Utility in accordance with Minnesota Statutes, Chapter 444. The City annually reviews
its water utility rates. Net revenues of the Water Utility available for debt service for the past
five years are shown below:
1991 1992 1993 1994 1995
Operating Revenue $ 172,569 $ 199,891 $ 172,624 $ 262,892 $ 198,566
Operating Expenses (183,200) (186,842) (213,994 ) (236,219) (243,586)
Plus Depreciation 56,586 61,128 74,504 77,040 79,617
Non Operating Revenue 22,629 25,550 27,902 34,389 59,014
Net Revenues Available
For Debt Service $ 68,584 $ 99,727 $ 61,036 $ 138,102 $ 93,611
In addition, the City will levy special assessments against benefited property. Special
assessments, totaling approximately $405,000 of principal, are expected to be filed in
November 1996 for first collection in 1997. The assessments will be spread over 15 years in
equal annual payments of principal with interest charged on the unpaid balance at a rate of
7%. The assessment income is expected to be approximately $44,722 each year for the life of
the Bonds.
FUTURE FINANCING
The City does not anticipate any further borrowing for the next 90 days.
L1TIGA TION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
or the City's ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of
Minneapolis, Minnesota as Bond Counsel. Bond Counsel has not participated in the
preparation of this Official Statement and will not pass upon its accuracy, completeness, or
sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the
financial or statistical statements, or data contained in this Official Statement and will express
no opinion with respect thereto. A legal opinion in substantially the form set out as Appendix I
to this Official Statement, will be delivered at closing.
TAX EXEMPTION
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions,
interest on the Bonds is not includable in the "gross income" of the owners thereof for
purposes of federal income taxation and is not includable in taxable net income of individuals,
estates or trusts for purposes of State of Minnesota income taxation, but is subject to State of
- 4 -
franchise taxes measured by income that are imposed upon corporations and financial
institutions.
Noncompliance following the issuance of the Bonds with certain requirements of the Internal
Revenue Code of 1986, as amended, (the "Code") and covenants of the bond resolution may
result in the inclusion of interest on the Bonds in gross income (for federal tax purposes) and
taxable net income for State of Minnesota tax purposes of the owners thereof. No provision
has been made for redemption of the Bonds, or for an increase in the interest rate on the
Bonds, in the event that interest on the Bonds becomes subject to United States or State of
Minnesota income taxation.
The Code imposes an alternative minimum tax with respect to individuals and corporations on
alternative minimum taxable income. Interest on the Bonds will not be treated as a preference
item in calculating alternative minimum taxable income. The Code provides, however, that for
taxable years beginning after 1989, a portion of the adjusted current earnings of a corporation
not otherwise included in the minimum tax base would be included for purposes of calculating
the alternative minimum tax that may be imposed with respect to corporations. Adjusted
current earnings include income received that is otherwise exempt from taxation such as
interest on the Bonds.
The Code imposes an environmental tax with respect to corporations on the excess of a
corporation's modified alternative minimum taxable income over $2,000,000. The
environmental tax applies with respect to taxable years beginning after December 31, 1986 and
before January 1, 1996.
The Code provides that in the case of an insurance company subject to the tax imposed by
Section 831 of the Code, for taxable years beginning after December 31, 1986 the amount
which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall
be reduced by an amount equal to 15% of the interest on the Bonds that is received or accrued
during the taxable year.
Interest on the Bonds may be included in the income of a foreign corporation for purposes of
the branch profits tax imposed by Section 884 of the Code. Under certain circumstances,
interest on the Bonds may be subject to the tax on "excess net passive income" of
Subchapter S corporations imposed by Section 1375 of the Code.
The above is not a comprehensive list of all federal tax consequences which may arise from the
receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the
Federal or State income tax liability of the recipient based on the particular taxes to which the
recipient is subject and the particular tax status of other items or deductions. Bond Counsel
expresses no opinion regarding any such consequences. All prospective purchasers of the
Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax
considerations for, purchasing or holding the Bonds.
BANK-QUALIFIED TAX-EXEMPT BONDS
The City will designate the Bonds as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of
financial institutions to deduct from income for federal income tax purposes, interest expense
that is allocable to carrying and acquiring tax-exempt obligations.
- 5-
RA TING
An application for a rating of the Bonds have been made to Moody's Investors Service
("Moody's"), 99 Church Street, New York, New York. If a rating is assigned, it will reflect only
the opinion of Moody's. Any explanation of the significance of the rating may be obtained only
from Moody's.
There is no assurance that a rating, if assigned, will continue for any given period of time, or
that such rating will not be revised or withdrawn, if in the judgment of Moody's, circumstances
so warrant. A revision or withdrawal of the rating may have an adverse effect on the market
price of the Bonds.
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, Public Finance Advisors, of St. Paul,
Minnesota, as financial advisor (the "Financial Advisor") in connection with the issuance of the
Bonds. In preparing the Official Statement, the Financial Advisor has relied upon
governmental officials, and other sources, who have access to relevant data to provide
accurate information for the Official Statement, and the Financial Advisor has not been
engaged, nor has it undertaken, to independently verify the accuracy of such information. The
Financial Advisor is not a public accounting firm and has not been engaged by the City to
compile, review, examine or audit any information in the Official Statement in accordance with
accounting standards. The Financial Advisor is an independent advisory firm and is not
engaged in the business of underwriting, trading or distributing municipal securities or other
public securities and therefore will not participate in the underwriting of the Bonds.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the
initial sale of the Bonds.
As of the date of the settlement of this Issue, the Purchaser will be furnished with a certificate
signed by the appropriate officers of the City. The certificate will state that as of the date of the
Official Statement, the Official Statement did not and does not as of the date of the certificate
contain any untrue statement of material fact or omit to state a material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were
made, not misleading.
- 6-
CITY PROPERTY VALUES
1995 Indicated Market Value of Taxable Property: $604,415,286*
*
Calculated by dividing the county assessor's estimated market value of $517,983,900 by the 1995
sales ratio of 85. 7% for the City as determined by the State Department of Revenue.
1995 Taxable Net Tax Capacity: $9,103,697
1995 Net Tax Capacity
Less: Contribution to Fiscal Disparities
Captured Tax Increment Tax Capacity
Plus: Distribution from Fiscal Disparities
1995 Taxable Net Tax Capacity
$9,115,960
(178,279)
(166,094)
332.110
$9,103,697
1995 Taxable Net Tax Capacity By Class of Property
Residential Homestead $8,412,342 92.4%
Commercial/Industrial, Public
Utility and Personal Property* 589,590 6.5
Residential Non-Homestead 25,565 0.3
Miscellaneous Classes 76.200 ~
Total $9,103,697 100.0%
Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
Trend of Values
Indicated
Market Value(a)
Assessor's
Estimated
Market Value
Taxable
Tax Capacity(b)
1995
1994
1993
1992
1991
$604,415,286
549,714,235
494,324,419
447,569,410
423,761,794
$517,983,900
463,409,100
425,119,000
402,364,900
382,656,900
$9,103,697
8,148,378
7,565,123
7,261,312
7,859,115
(a) Calculated by dividing the county assessor's estimated market value by the sales ratio determined for
the City each year by the State Department of Revenue.
(b) The decline in taxable tax capacity between 1991 and 1993 is primarily attributable to the change in
class rate percentages. For an explanation of tax capacity and the Minnesota property tax system,
see Appendix II.
- 7 -
Ten of the Largest Taxpayers
Taxpayer
Northern States Power Company
Ryan Construction Company
Minnetonka Country Club
Minnegasco
Two S Properties
MFT Inc.
Waterford Partners LLC
Individual
Individual
Finaserve Inc.
Total
Type of Property
Utility
Shorewood Shopping Center
Country Club
Utility
Commercial
Residence
Commercial
Residence
Residence
Gas and Convenience Store
Represents 5.6% of the City's total 1995 taxable net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit
Legal Debt Limit (2% of Estimated Market Value)
Less: Outstanding Debt Subject to Debt Limitation
Debt Margin as of September 2, 1996
1995 Net
T ax Capacity
$123,639
75,118
73,375
65,325
41,663
32,100
29,169
23,600
22,408
22,380
$508,777*
$10,359,678
-0-
$10,359,678
General Obligation Debt Supported by Revenues or Special Assessments
Date
of Issue
11-1-91
12-1-93
10-1-95
11-1-96
Original
Amount
960,000
285,000
1,920,000
860,000
Purpose
Local Improvements
Local Improvements
Water Revenue
Water Revenue (this Issue)
Subtotal
Less: Debt Service Funds *
Total Net Debt
Final
Maturity
2-1-2002
2-1-2004
2-1-2011
2-1-2012
Principal
Outstanding
As of 9-2-96
$ 570,000
245,000
1,920,000
860,000
$3,595,000
(632,483)
$2,962,517
Debt service funds are as of August 31, 1996 and include money to pay both principal and interest.
Revenue Debt
Date Original
of Issue Amount
5-30-91 $920,000
Purpose
Tax Increment Revenue
Final
Maturity
2-1-2000
- 8-
Principal
Outstanding
As of 9-2-96
$920,000
Annual Debt Service Payments Including This Issue
G.O. Debt
Year
1996 (at 9-2)
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total
Principal
(Paid)
$ 260,000
320,000
315,000
320,000
310,000
300,000
205,000
210,000
180,000
190,000
185,000
185,000
185,000
190,000
180,000
60.000
$3,595,000(b)
Principal
& Interest(a)
(Paid)
$ 422,512.50
481,395.00
461,176.25
450,705.00
424,978.75
399,442.50
291,705.00
286,482.50
246,752.50
247,405.00
232,807.50
223,207.50
213,445.00
208,360.00
188,250.00
61.650.00
$4,840,275.00
(a) Includes this Issue at an assumed annual interest rate of 5.50%.
(b) 73% of this debt will be retired within ten years.
Revenue Debt
Principal
Principal & Interest
(Paid)
$ 82,800
82,800
82,800
$920,000 961,400
$920,000 $1,209,800
Lease Obligations
On March 4, 1996 the City entered into a joint powers agreement, along with the cities of
Excelsior, Deephaven, Greenwood and Tonka Bay, for the Southshore Senior/Community
Center. The City of Shorewood entered into a lease for it's share of the agreement with a total
principal amount of $311,000. Payments are due semi-annually February 1 and August 1, in
the amount of $18,771.97, with the first payment due on February 1, 1997. The lease consists
of twenty-four payments total, with the final payment due August 1, 2008.
Indirect Debt
Taxing Unit(a)
Hennepin County
ISD 276 (Minnetonka)
ISD 277 (Westonka)
Metropolitan Council
Metropolitan Transit
District
Hennepin Parks
Total
1995 Taxable
Net Tax Capacity
$1,006,485,910
38,465,114
17,410,033
2,011,186,977
1,812,692,235
723,669,485
G.O. Debt
As of 9-2-96(b)
$51,360,000
58,490,000
13,700,000
23,465,000(c)
67,560,000
13,955,000
Debt Applicable to
Tax Capacity in City
Percent Amount
0.9% $ 464,553
22.8 13,335,720
2.0 274,000
0.5 117,325
0.5 337,800
1.3 181.415
$14,710,813
(a) Only those taxing units which have outstanding general obligation debt are presented here.
(b) Does not include general obligation tax or aid anticipation certificates or revenue-supported debt.
(c) Metropolitan Council also has outstanding $454,090,000 of general obligation sanitary sewer bonds
and loans which are supported by system revenues.
-9-
Debt Ratios
G.O. Net
Direct Debt*
G.O. Indirect &
Net Direct Debf
To 1995 Indicated Market Value
Per Capita (6,794 - 1995 Metropolitan Council)
0.49%
$436
2.92%
$2,601
Excludes revenue debt.
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates For a City Resident of Independent School District 276
1995/96
For
1991/92 1992/93 1993/94 1994/95 Total Debt Only
Hennepin County 34.327% 35.839% 37.441 % 37.454% 37.270% 2.375%
City of Shorewood 20.164 20.797 19.904 18.471 17.431 0.179
ISD 276 (Minnetonka) 64.017 74.180 76.514 76.139 76.340 3.692
Hennepin Technical
College 0.513 1.095 0.809 0 0 0
Special Districts * 5.996 6.042 5.724 5.847 6.390 1.312
Total 125.017% 139.953% 140.392% 137.911% 137.431 % 7.558%
Special districts include Metropolitan Mosquito Control, Metropolitan Council, Metropolitan Transit
District, Hennepin County Park Museum, and Hennepin County Railroad Authority and the Minnehaha
Watershed District.
NOTE: Taxes are determined by multiplying the net tax capacity by the tax capacity rate, expressed as
a percentage (see Appendix II).
Tax Collections for the City
Gross
Levy/Collect Levy
Net
Levy*
Collected During
Collection Year
Amount Percent
Collected
As of 5-31-96
Amount Percent
1995/96
1994/95
1993/94
1992/93
1991/92
$2,012,432
1,944,976
1,518,832
1,932,527
1,864,631
$1,598,713
1,518,006
1,506,725
1,504,777
1,591,223
(In Process of Collection)
$1,496,808 98.6% $1,508,680
1,493,207 99.1 1,503,701
1,480,678 98.4 1,502,749
1,545,831 97.1 1,587,491
99.4%
99.8
99.9
99.8
The net levy excludes Homestead and Agricultural Credit Aid ("HACA"). Beginning in 1993/94, the net
levy is the basis for computing the tax capacity rates. The gross levy was the basis for computing tax
capacity rates in prior years.
- 10 -
FUNDS ON HAND
As of August 31, 1996
Fund
General
Capital Projects
Debt Service
Enterprise
Total
Cash and Investments
$1,540,023
1,994,942
632,483
1.787 .126
$5,954,574
CITY INVESTMENTS
The City seeks to invest public funds in a manner which will provide the highest investment
return with maximum security while meeting the daily cash flow demands of the City and
conforming to all state and local statutes governing the investment of public funds. Safety of
principal is the foremost objective of the City's investment program. It is also a primary
objective that the City's investment portfolio remain sufficiently liquid to enable the City to meet
all operating requirements and that the investment portfolio attain a market rate return
throughout budgetary and economic cycles, taking into account the City's investment risk
constraints and the cash flow characteristics of the portfolio. The City adopted an investment
policy in September of 1996.
The City Finance Director is responsible for the management of the investment program and
establishing procedures for the operation of the program.
The following is a summary of the City's investment portfolio as of August 31,1996:
Market
Value
August 31. 1996
$1,897,342.25
1,708,581.28
2,001,787.02
167,551.32
104.726.15
$5.879.988.02
Current
Book Value
Percent
of Total
Portfolio
32.47%
28.15
34.33
3.23
1.82
100.00%
U.S. Agency Paper
Certificates of Deposit
Commercial Paper
CMO's
4M Fund
$1,872,784.46
1,623,661.17
1,980,330.43
186,461.76
104.726.15
$5.767.963.93
Total Portfolio
Interest rates range from 4.60% to 8.25% and the maturities range from 91 days to 30 years,
with an average maturity of 2.9 years.
The following is a summary of the scheduled maturities for the City's investment portfolio:
'I
'j'
Maturities
8/1/96 - 2/1/97
2/1/97 - 8/1/97
8/1/97 - 8/1/98
8/1/99 - 8/1/01
after 8/1/01
Total
Amount of
Principal Maturing
$3,459,288.05
365,024.03
544,650.24
853,074.00
545.927.65
$5.767.963.97
Percent of
Total
59.98%
6.33
9.44
14.79
9.46
100.00%
- 11 -
GENERAL INFORMATION CONCERNING THE CITY
The City of Shorewood is a suburban Twin Cities community located in Hennepin County on
the south shore of Lake Minnetonka incorporating 3,600 acres. The City's 1990 U.S. Census
was 5,917, a 27.4% increase over the City's 1980 U.S. Census count of 4,646. The
Metropolitan Council estimates the City's 1995 population to be approximately 6,794, an
14.8% increase over the City's 1990 U.S. Census count.
State Highway 7 runs east and west through the City and connects with the extensive freeway
system in the Minneapolis-Saint Paul metropolitan area.
The City is primarily a residential community with limited commercial establishments located
along State Highway 7. Approximately 92% of the City's net tax capacity is classified as
residential property. The majority of residents commute to jobs throughout the metropolitan
area. Two of the larger employers in Shorewood are Northern States Power Company with
approximately 90 full-time employees and the Minnetonka Country Club employing
approximately 50 full- and part-time persons. Building permit values for the past few years
have averaged over $225,000 per single-family home.
There are approximately 2,064 single-family homes in the City. Homes in the City range from
moderately priced to expensive (especially those located on Lake Minnetonka and Christmas
Lake). It is estimated that approximately 74% of the houses in the City have a market value
greater than $100,000. The price of lake front property around the two lakes is currently
$1,000 to $2,000 per front foot.
Residential subdivisions constructed the last four years include the following:
Number and
Type of Dwellino
27 Two-family
4 Single-family
4 Single-family
4 Single-family
12 Two-family
4 Single-family
21 Single-family
31 Single-family
4 Single-family
6 Single-family
9 Two-family
10 Single-family
Year
Subdivision
1993
Waterford Fourth Addition
Bateson Wilson Addition
Christmas Lake Ridge
James Hill
Seasons
Smithtown Wood
Heritage Addition
L.W.M. Addition
Zachary Woods
Smithtown Meadows
Gideon Woods
Watton Ponds
1994
1995
1996
Building Permits
Total Permits
Number Value
1996 (at 7-31)
1995
1994
1993
1992
1991
1990
1989
1988
1987
346
643
709
675
298
277
305
581
341
235
$ 8,184,558
16,991,398
22,810,079
22,844,600
15,525,941
15,710,361
18,986,195
19,727,927
31,275,892
24,687,663
- 12 -
Status
Completed
Completed
Completed
Under Construction
9 Completed
Preliminary Platting
7 Completed
Final Plat Pending
Under Construction
Final Plat Pending
7 Completed
Preliminary Platting
New Sinole-Family Homes
Number Value
18
40
86
102
55
69
82
89
157
163
$ 4,901,979
10,167,210
16,530,925
17,941,776
10,899,687
14,044,120
16,252,990
16,799,836
29,040,667
23,397,136
Labor Force Data
Hennepin County
Minneapolis-St. Paul MSA
State of Minnesota
Julv 1996
Civilian
Labor Force Unemployment
(000) Rate
662,818
1,648,324
2,645,575
2.9%
2.8
3.5
Julv 1995
Civilian
Labor Force Unemployment
(000) Rate
648,321
1,611,387
2,588,972
3.0%
2.8
3.4
Source: Minnesota Department of Economic Security. 1996 data is preliminary.
Financial Facilities
Financial institutions available to City residents are located in the nearby communities of
Minnetonka and Excelsior.
Education
The majority of the City is within the Minnetonka School District (Independent School
District 276) which operates one elementary school in the City. Independent School
District 276 has an approximate 1996/97 enrollment of 7,370. A portion of the City also lies
within the Westonka School District (Independent School District 277), which has an
approximate 1996/97 enrollment of 2,416.
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
Shorewood was organized as a village in 1956 and became a statutory city in 1974. The City
operates under a Mayor-Council form of government. The City Council consists of four
members elected at large to four-year terms. The Mayor is elected to a two-year term. The
incumbent Mayor and Council members are:
Expiration of Term
Robert B. Bean
Bruce E. Benson
Jennifer T. McCarty
Frank R. Shaw
Kristi Stover
Mayor
Council Member
Council Member
Council Member
Council Member
December 31, 1996
December 31, 1996
December 31, 1998
December 31, 1996
December 31, 1996
The City Administrator/Clerk, Mr. James C. Hurm, is the chief appointed staff member and is
responsible for overall City operations. Mr. Alan J. Rolek is the Finance DirectorlTreasurer.
The City has a total of 20 full-time employees and 20 part-time employees.
Municipal Services
The City owns and maintains sanitary sewer laterals throughout the developed portions of the
City and there are approximately 2,500 connections to the system. Major sanitary sewer
-13-
interceptors and wastewater treatment facilities throughout the metropolitan area are owned
and operated by the Metropolitan Council. The Metropolitan Council, through the Office of
Wastewater Services of the Environmental Division of the Council, bills its underlying units for
service costs.
Municipal water service is currently supplied to approximately 975 users. The majority of
residences and businesses in the City are supplied by private well systems. The City's
municipal water system is supplied by six wells with a total pumping capacity of 2,250 gallons
per minute. Average water demand is 267,800 gallons per day.
Shorewood has a joint powers agreement with the cities of Excelsior,. Tonka Bay and
Greenwood to provide police protection. The agreement established a police protection
agency called the South Lake Minnetonka Public Safety Department. The current agreement
continues through December 1997. The City of Shorewood contributed 43.9% to the total
operating budget in 1995. The Department has 13 full-time and 10 reserve officers. Fire
protection is available under contract from the Excelsior and Mound Volunteer Fire
Departments.
,.,
Pensions
All full-time and certain part-time employees of the City of Shorewood are covered by defined
benefit pension 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. PERF members belong to either the
Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and
Basic members are not. Total contributions to PERA by the City during 1994 and 1995 were
$26,034 and $29,103, respectively.
- 14-
APPENDIX I
PROPOSED FORM OF LEGAL OPINION
KENNEDY & GRAVEN
CHARTERED
470 Pillsbury Center, Minneapolis, Minnesota 55402
Telephone (612) 337-9300
Facsimile (612) 337-9310
'w-
$860,000
General Obligation Water Revenue
Bonds, Series 1996A
City of Shorewood
Hennepin County, Minnesota
We have acted as bond counsel in connection with the issuance by the City of Shorewood,
Hennepin County, Minnesota, of its General Obligation Water Revenue Bonds, Series 1996A,
originally dated as of November 1, 1996, in the total principal amount of $860,000. For the
purpose of rendering this opinion we have examined certified copies of certain proceedings taken
by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds,
and certain other proceedings and documents furnished by the City. From our examination of
such proceedings and other documents, assuming the genuineness of the signatures thereon and
the accuracy of the facts stated therein and continuing compliance by the City with its covenants
to comply with the Internal Revenue Code of 1986, as amended, and based upon laws,
regulations, rulings and decisions in effect on the date hereof, it is our opinion that:
1. The Bonds are in due form, have been duly executed and delivered, and are valid
and binding general obligations of the City, enforceable in accordance with their terms, except
as such enforcement may be limited by Minnesota or United States laws relating to bankruptcy,
reorganization, moratorium or creditors' rights.
2. The principal of and interest on the Bonds are payable primarily from net revenues
of the water system of the City and from special assessments levied or to be levied on property
specially benefitted by local improvements, but if necessary for the payment thereof, ad valorem
taxes are required by law to be levied on all taxable property in the City, which taxes are not
subject to any limitation as to rate or amount.
3. Interest on the Bonds is not includable in gross income of the recipient for federal
income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a
preference item for purposes of the computation of the federal alternative minimum tax, or the
computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates,
but such interest is includable in the computation of "adjusted current earnings," used in the
calculation of federal alternative minimum taxable income of corporations, and is subject to
Minnesota franchise taxes on corporations (including financial institutions) measured by income
and the alternative minimum tax base. We express no opinion regarding other federal or state
tax consequences arising with respect to the Bonds. The Bonds are not arbitrage bonds and are
not private activity bonds.
We have not been asked and have not undertaken to review the accuracy, completeness
or sufficiency of the offering material relc.tir.g to the Bonds, and accordingly we express no
opinion with respect thereto.
Dated at Minneapolis, Minnesota,
1-1
APPENDIX II
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
Following is a summary of certain statutory provisions effective through 1995 relative to tax levy
procedures, tax payment and credit procedures, and the mechanics of real property valuation.
The summary does not purport to be inclusive of all such provisions or of the specific provisions
discussed, and is qualified by reference to the complete text of applicable statutes, rules and
regulations of the State of Minnesota in reference thereto. This summary reflects changes to
Minnesota property tax laws enacted by the State Legislature during the 1995 Regular Session.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value
Each parcel of real property subject to taxation must, by statute, be appraised at least once
every four years as of January 2 of the year of appraisal. With certain exceptions, all property
is valued at its market value which is the value the assessor determines to be the price the
property to be fairly worth, and which is referred to as the "Estimated Market Value."
Limitation of Market Value Increases
Effective for assessment years 1993 through 1997, the amount of increase in market value for
all property classified as agricultural homestead and non-homestead, residential homestead
and non-homestead, or non-commercial seasonable recreational residential, which is entered
by the assessor in the current assessment year, may not exceed the greater of (i) 10% of the
preceding year's market value or (ii) 1/3 of the difference between the current assessment and
the preceding assessment.
Indicated Market Value
Because the Estimated Market Value as determined by an assessor may not represent the
price of real property in the marketplace, the "Indicated Market Value" is generally regarded as
more representative of full value. The Indicated Market Value is determined by dividing the
Estimated Market Value of a given year by the same year's sales ratio determined by the State
Department of Revenue. The sales ratio represents the overall relationship between the
Estimated Market Value of property within the taxing unit and actual selling price.
Net Tax Capacity
The Net Tax Capacity is the value upon which net taxes are levied, extended and collected.
The Net Tax Capacity is computed by applying the class rate percentages specific to each type
of property classification against the Estimated Market Value. Class rate percentages vary
depending on the type of property as shown on the last page of this Appendix II. The formulas
and class rates for converting Estimated Market Value to Net Tax Capacity represent a basic
element of the State's property tax relief system and are subject to annual revisions by the
State Legislature.
Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate,
expressed as a percentage.
Property Tax Payments and Delinquencies
(Chapters 276, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and
collected by the various counties within the State. Each taxing jurisdiction is required to certify
the annual tax levy to the county auditor within five (5) working days after December 20 of the
year preceding the collection year. A listing of property taxes due is prepared by the county
auditor and turned over to the county treasurer on or before the first business day in March.
11-1
The county treasurer is responsible for collecting all property taxes within the county. Real
estate and personal property tax statements are mailed out by March 31. One-half (1/2) of the
taxes on real property is due on or before May 15. The remainder is due on or before
October 15. Real property taxes not paid by their due date are assessed a penalty which,
depending on the type of property, increases from 2% to 4% on the day after the due date. In
the case of the first installment of real property taxes due May 15, the penalty increases to 4%
or 8% on June 1. Thereafter, an additional 1 % penalty shall accrue each month through
October 1 of the collection year for unpaid real property taxes. In the case of the second
installment of real property taxes due October 15, the penalty increases to 6% or 8% on
November 1 and increases again to 8% or 12% on December 1. Personal property taxes
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the
unpaid tax. However, personal property owned by a tax-exempt entity, but which is treated as
taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties
as real property.
On the first business day of January of the year following collection all delinquencies are
subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are
filed for a tax lien judgment with the district court. By March 20 the clerk of court files a
publication of legal action and a mailing of notice of action to delinquent parties. Those
property interests not responding to this notice have judgment entered for the amount of the
delinquency and associated penalties. The amount of the judgment is subject to a variable
interest determined annually by the Department of Revenue, and equal to the adjusted prime
rate charged by banks, but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have five years (5) in the case of all
property located outside of cities or in the case of residential homestead, agricultural
homestead and seasonal residential recreational property located within cities or three (3) years
with respect to other types of property to redeem the property. After expiration of the
redemption period, unredeemed properties are declared tax forfeit with title held in trust by the
State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof,
then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel,
with any remaining balance in most cases being divided on the following basis: county - 40%;
town or city - 20%; and school district - 40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of
Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker
credit, which relates property taxes to income and provides relief on a sliding income scale; and
targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The
circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by
the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid,
equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid.
Levy Limitations
Historically, the ability of local governments in Minnesota to levy property taxes was controlled
by various statutory limitations. These limitations have expired for taxes payable in 1993 and
future years, but may be reinstated in the future. Under prior law the limitations generally did
not affect debt service levies. For county governments, cities of 2,500 population or more, and
smaller cities and towns that receive taconite municipal aid, taxes could be levied outside the
overall levy limitation for, among others, bonded indebtedness and certificates of indebtedness,
unfunded accrued pension liability, social service programs and the residual income
maintenance program for which the county share of costs has not been taken over by the State.
11-2
Debt Limitations
All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory
"net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is
defined as the amount remaining after deducting from gross debt the amount of current
revenues which are applicable within the current fiscal year to the payment of any debt and the
aggregation of the principal of the following:
1. Obligations issued for improvements which are payable wholly or partially from the
proceeds of special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems, and
public lighting, heating or power systems, and any combination thereof, or for any other
public convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their issuance.
9. Debt service funds for the payment of principal and interest on obligations other than those
described above.
10. Certain obligations to pay pension fund liabilities.
levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality which issues general obligation debt must, at the time of issuance, certify
levies to the county auditor of the county(ies) within which the municipality is situated. Such
levies shall be in an amount that if collected in full will, together with estimates of other
revenues pledged for payment of the obligations, produce at least five percent in excess of the
amount needed to pay principal and interest when due.
Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to
levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is
without limitation as to rate or amount.
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
"Fiscal Disparities law"
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as
"Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the
increase in commercial-industrial (including public utility and railroad) net tax capacity valuation
since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan
area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott,
excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax
base. A distribution index, based on the factors of population and real property market value
per capita, is employed in determining what proportion of the net tax capacity value in the area-
wide tax base shall be distributed back to each assessment district.
11-3
STATUTORY FORMULAE
CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR
MAJOR PROPERTY CLASSIFICATIONS
Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity
General Classifications Levy Year 1991 Levy Year 1992 Levv Year 1993 Levv Year 1994 Levy Year 1995
Residential Homestead First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00%
Next $42,000 of EMV at 2.00% EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $72,000
EMV in excess of $115,000 at 2.00% at 2.00% at 2.00% at 2.00%
at 2.5%
Residential Non-Homestead 3.50% 3.40% 3.40% 3.40% 3.40%; except certain cities of
4 or more units 5,000 population or less at 2.30%
Agricultural Homestead First $72,000 EMV of house, First $72,000 EMV of house, First $72,000 EMV of house, First $72,000 EMV of house, First $72,000 EMV of house,
garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00%
Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% EMV in excess of $72,000 of EMV in excess of $72,000 of EMV in excess of $72,000 of
Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% house, garage and 1 acre at house, garage and 1 acre at house, garage and 1 acre at
2.00% 2.00% 2.00%
Next $43,000 EMV at 2.00% Next $43,000 EMV at 2.00%
Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% Remaining Property: Remaining Property: Remaining Property:
Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% First $115,000 of EMV on First $115,000 of EMV on First $115,000 of EMV on
EMV in excess of $115,000 EMV in excess of $115,000 first 320 acres at 0.45% first 320 acres at 0.45% first 320 acres at 0.45%
at 2.5% at 2.00% EMV in excess of $115,000 on EMV in excess of $115,000 on EMV in excess of $115,000 on
Excess to 320 acres at 1.30% Excess to 320 acres at 1.30% first 320 acres at 1.00% first 320 acres at 1.00% first 320 acres at 1.00%
I Excess over 320 acres at 1.60% Excess over 320 acres at 1.60% EMV in excess of $115,000 over EMV in excess of $115,000 over EMV in excess of $115,000 over
.J:>. 320 acres at 1.50% 320 acres at 1.50% 320 acres at 1.50%
Agricultural Non-Homestead EMV of house, garage and EMV of house, garage and EMV of house, garage and EMV of house, garage and EMV of house, garage and
1 acre at 2.80% 1 acre at 2.50% 1 acre at 2.30% 1 acre at 2.30% 1 acre at 2.30%
EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings
at 1.60% at 1.60% at 1.50% at 1.50% at 1.50%
Commercial-Industrial First $100,000 of EMV at 3.10% First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00%
EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000
at 4.75% at 4.70% at 4.60% at 4.60% at 4.60%
Seasonal/Recreational Non-Commercial - 2.20% Non-Commercial Non-Commercial Non-Commercial Non-Commercial
Residential First $72,000 of EMV at 2.00% First $72,000 of EMV at 2.00% First $72,000 of EMV at 2.00% First $72,000 of EMV at 2.00%
EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $72,000
at 2.50% at 2.50% at 2.50% at 2.50%
Commercial- 2.30% Commercial - 2.30% Commercial - 2.30% Commercial - 2.30%
Vacant Land 4.75% N/A N/A N/A N/A
(All vacant land is reclassified (All vacant land is reclassified (All vacant land is reclassified (All vacant land is reclassified
to highest and best use to highest and best use to highest and best use to highest and best use
pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning
ordinance) ordinance) ordinance) ordinance)
.
~
APPENDIX III
ANNUAL FINANCIAL STATEMENTS
Excerpts from the City's financial statements for the years ended December 31, 1995, 1994,
and 1993 are presented on the following pages. The City is audited annually by an
independent certified public accounting firm. The reader should be aware that the complete
financial statements may contain additional information relating to the information presented
here which may interpret, explain or modify it.
'-
The City's Comprehensive Annual Financial Report (CAFR) for the fiscal year 1995 was
awarded the Certificate of Achievement for Excellence in Financial Reporting (Certificate of
Achievement) by the Government Finance Officers Association of the United States and
Canada (GFOA). The Certificate of Achievement is the highest form of recognition for
excellence in state and local government financial reporting.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report, whose contents
conform to program standards. Such CAFR must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Acheivement is valid for a period
of one year only.
11I-1
CITY OF SHOREWOOD, MINNESOTA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1995
Proprietary Fiduciary
Governmental Fund TYPes FundTvoe Fund TYPe Account Groups
General Total
Debt Capital General Long-term (Memorandum OnlY)
General Service Pro;ects Enterprise Aqency Fixed Assets Debt 1995 1994
ASSETS AND OTHER DEBITS
Cash and investments $1 576 162 $1 371 241 $1 392 816 $ 2 881 217 $ $ $ $ 7 221 436 $ 5 450 774
Receivables
Taxes 44 622 2 374 502 47 498 53 579
Accounts 22 221 5 464 234 83B 262 523 307 644
Accrued interest 56 452 42 577 4B 882 55 107 203 01B 163 243
Special assessments 2 BB3 511 053 1 750 796 612 1 312 29B 690 525
Due from other funds 85 517 34 411 119 92B 140 259
Inventories, at cost 257 447 257 447 153 415
Prepaid items 17 737 17 737 13 434
Property and equipment, net 6 653 460 4 124 01B 10 777 47B 9 935 467
Bond discount, net 11 799 11 799 3'64
Investments for deferred compensation IB7 409 IB7 409 12B 979
Other debits
Amounts available for debt retirement 1 419 732 1 419 732 1 485 579
Amounts to be provided for debt
retirement 1 111 631 1 III 631 1 275 755
TOTAL ASSETS AND OTHER DEBITS $1 702 340 $1 927 245 $1 534 429 $10 943 130 $187 409 $4 124 018 $ 2 531 363 $ 22 949 934 $19 799 017
I
NLIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable $ 69 941 $ 550 $ 45 220 $ 242 B42 $ $ $ $ 35B 553 $ 177 635
Salaries and compensated absences payable 15 157 4 092 21 B63 41 112 36 363
Refundable deposits payable 43 560 25 150 6B 710 24 760
Deferred revenue 29 334 506 963 1 705 7 593 545 595 690 555
Due to other funds 85 517 34 411 119 92B 140 259
Bonds payable 1 935 000 2 509 500 4 444 500 2 770 500
Deferred compensation funds held for
participants IB7 409 187 409 12B 9H
TOTAL LIABILITIES 157 992 507 513 157 592 2 223 938 187 409 2 531 363 5 765 B07 3 969 051
FUND EQUITY
Contributed capital B 033 534 B 033 534 7 100 609
Investment in general fixed assets 4 124 018 4 124 01B 3 894 635
Retained earnings - unreserved 685 658 6B5 65B 692 370
Fund balance
Reserved 1 419 732 1 419 732 1 485 579
Unreserved
Designated 1 544 348 1 491 433 3 035 781 2 777 396
Undesignated (114 596) (114 596) (120 623)
TOTAL EQUITY 1 544 348 1 419 732 1 376 837 8 719 192 4 124 018 17 1B4 127 15 829 966
TOTAL LIABILITIES, FUND EQUITY $1 702 340 $1 927 245 $1 534 429 $10 943 130 $187 409 $4 124 018 $ 2 531 363 $ 22 949 934 $19 799 017
l
CITY OF SHOREWOOD, MINNESOTA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1994
ASSETS AND OTHER DEBITS
Cash and investments
Cash held in escrow
Receivables
Taxes
Accounts
Accrued interest
Contract
Special assessments
Due from other funds
Inventories, at cost
Prepaid items
Property and equipment, net
Bond discount, net
Investments for deferred compensation
plans, at market
Other debits
Amounts available for debt service
Amounts to be provided for general
long-term debt
T
W
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Refundable deposits payable
Deferred revenue
Due to other funds
Bonds payable
Deferred compensation funds held for
participants
TOTAL LIABILITIES
EQUITY AND OTHER CREDITS
Contributed capital
Investment in general fixed assets
Retained earnings - unreserved
Fund balance
Reserved
Unreserved
Designated
Undesignated
TOTAL EQUITY AND OTHER CREDITS
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS
General
Governmental Fund Types
Capital
Proiects
$1 503 390
52 161
23 779
49 187
1 930
$1 630 447
$
37 901
12 686
24 760
57 422
132 769
1 497 678
1 497 678
Debt
Service
$1 445 419
37 806
627 957
$2 112 036
$
626 457
626 457
1 485 579
1 485 579
$1 103 722
854
28 100
35 162
8 446
140 259
$1 315 689
$
9 659
6 676
140 259
156 594
1 279 718
(120 623)
1 159 095
$1 630 447 $2 112 036 $1 315 689
Proprietary
Fund TYPe
Enterprise
$1 398 243
564
255 765
41 088
52 192
153 415
13 434
6 040 832
364
$7 955 897
$
130 075
2 843
30 000
162 918
7 100 609
692 370
7 792 979
$7 955 897
Fiduciary
Fund TYPe
Aqency
$
128 979
$128 979
$
128 979
128 979
$128 979
r
Account Groups
General
General Long-term
Fixed Assets Debt
$
3 894 635
$3 894 635
$
3 894 635
3 894 635
$3 894 635
$
1 485 579
1 275 755
$2 761 334
$
20 834
2 740 500
2 761 334
$2 761 334
Total
(Memorandum OnlY)
1994 1993
$ 5 450 774
53 579
307 644
163 243
690 525
140 259
153 415
13 434
9 935 467
364
128 979
1 485 579
1.275 755
$19 799 017
$ 177 635
36 363
24 760
690 555
140 259
2 770 500
128 979
3 969 051
7 100 609
3 894 635
692 370
1 485 579
2 777 396
(120 623)
15 829 966
$ 5 815 615
225 197
55 723
269 294
107 512
87 642
886 886
59
148 896
17 221
9 526 936
549
III 681
1 999 197
1 444 307
$20 696 715
$ 456 982
36 994
84 191
964 192
59
3 466 500
111 681
5 120 599
6 894 145
3 454 841
869 694
2 033 382
2 385 323
(61 269)
15 576 116
$19 799 017 $20 696 715
CITY OF SHOREWOOD, MINNESOTA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1993
ASSETS AND OTHER DEBITS
Cash and investments
Cash held in escrow
Receivables
Taxes
Accounts
Accrued interest
Contract
special assessments
Due from other funds
Inventories, at cost
Prepaid items
Property and equipment,
Bond discount, net
Investments for deferred
plans, at market
Other debits
Amounts available
Amounts to be provided
long-term debt
net
compensation
for general
J:,..
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts and contracts payable
Salaries and compensated absences payable
Refundable deposits payable
Deferred revenue
Due to other funds
Bonds payable
Deferred compensation funds held for
participants
TOTAL LIABILITIES
EQUITY AND OTHER CREDITS
Investment in general fixed assets
Contributed capital
Retained earnings - unreserved
Fund balance
Reserved
Unreserved
Designated
Undesignated
TOTAL EQUITY AND OTHER CREDITS
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS
General
Governmental Fund Types
Capital
Proiects
$1 525 855
34 185
55 007
51 806
35 698
87 642
1 655
51 791 848
$
59 128
11 965
84 191
133 282
288 566
34 185
1 469 097
1 503 282
Debt
Service
$1 963 835 $1 117 387
262
33 268 12 277
824 453 8 852
59
52 821 818 51 138 575
$
822 327
822 621
1 999 197
1 999 197
294
5
274 976
Proprietary
Fund TYpe
Enterprise
$1 208 538
191 012
454
217 488
26 269
51 926
148 896
17 221
6 072 095
549
57 934 448
$
122 584
3 025
8 583
59
283 618
916 226
/61 269)
854 9ti7
45 000
170 609
6 894 145
869 694
51 791 848' 52 821 818 51 138 575 57 934 448
7 763 839
Fiduciary
Fund Type
Aaency
$
111 681
5111 681
$
111 681
111 681
Sl11 681
General
Fixed Assets
Account Groups
General
Long-term
Debt
$
3 454 841
S3 454 841
$
3 454 841
3 454 841
53 454 841
$
1 999 197
1 444 307
53 443 504
$
22 004
3 421 500
3 443 5.Q!
53 443 504
~
Total
/Memorandum Only)
1993 1992
$ 5 815 615
225 197
55 723
269 294
107 512
87 642
886 886
59
148 896
17 221
9 526 936
549
111 681
1 999 197
1 444 307
520 696 715
$ 456 982
36 994
84 191
964 192
59
3 466 500
111 681
5 120 599
3 454 841
6 894 145
869 694
2 033 382
2 385 323
/61 269)
15 576 116
$ 4 908 031
108 227
261 252
94 623
92 229
1 127 331
167 968
16 827
9 464 568
734
86 476
1 742 742
1 637 712
519 708 720
$ 331 965
31 764
25 825
1 234 248
3 416 000
86 476
5 126 278
3 264 271
6 860 395
798 650
1 742 742
1 919 147
/2 763)
14 582 442
520 696 715 S19 708 720
CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1995
Total
Debt Capital (Memorandum Only)
General Service proiects 1995 1994
REVENUE
General property taxes $1 489 822 $ 30 608 $ $1 520 430 $1 495 911
Licenses and permits 184 857 184 857 256 243
Intergovernmental 440 720 335 84 413 525 468 555 564
Charges for services 20 505 20 505 42 233
Fines and forfeitures 68 765 68 765 73 998
Miscellaneous
Special assessments 671 170 732 6 517 177 920 265 439
Interest on investments 84 616 63 301 77 507 225 424 197 639
Other 58 053 24 506 82 559 181 028
TOTAL REVENUE 2 348 009 264 976 192 943 2 805 928 3 068 055
EXPENDITURES
Current
General government 723 098 723 098 755 097
Public safety 650 703 650 703 618 047
Public works 432 759 432 759 433 699
- Parks and recreation 115 446 115 446 128 600
I Capital outlay 374 534 374 534 616 434
01 Debt service
Principal 231 000 231 000 681 000
Interest and service charges 99 .823 99 823 120 862
TOTAL EXPENDITURES 1 922 006 330 823 374 534 2 627 363 3 353 739
EXCESS REVENUE (EXPENDITURES) 426 003 (65 847) (181 591) 178 565 (285 684)
OTHER FINANCING SOURCES (USES)
Operating transfers in 30 000 557 225 587 225 994 425
Operating transfers out (404 225) (163 000) (567 225) (923 825)
TOTAL OTHER FINANCING SOURCES
(USES) (374 225) 394 225 20 000 70 600
EXCESS REVENUE AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES 51 778 (65 847) 212 634 198 565 (215 084)
FUND BALANCE, JANUARY 1 1 497 678 1 485 579 1 159 095 4 142 352 4 357 436
FUND EQUITY TRANSFER IN 6 449 6 449 531 847
FUND EQUITY TRANSFER OUT (5 108) (1 341) (6 449) (53l 847)
FUND BALANCE, DECEMBER 31 $1 544 348 $1 419 732 $1 376 837 $4 340 917 $4 142 352
CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1994
Total
Debt Capital (Memorandum Only)
General Service Proiects 1994 1993
REVENUE
General property taxes $1 487 398 $ 8 513 $ $1 495 911 $1 521 600
Licenses and permits 256 243 256 243 247 557
Intergovernmental 441 040 356 114 168 555 564 475 272
Charges for services 42 233 42 233 5 197
Fines and forfeitures 73 998 73 998 70 135
Miscellaneous
Special assessments 248 844 16 595 265 439 522 119
Interest on investments 78 021 54 636 64 982 197 639 194 928
Other , 112 406 68 622 181 028 114 554
TOTAL REVENUE 2 491 339 312 349 264 367 3 068 055 3 151 362
EXPENDITURES
Current
General government 755 097 755 097 668 410
Public safety 618 047 618 047 580 153
Public works 433 699 433 699 436 224
T Parks and recreation 128 600 128 600 119 473
(J) Capital outlay 616 434 616 434 595 101
Debt service
Principal 681 000 681 000 264 500
Interest and service charges 120 862 120 862 141 889
TOTAL EXPENDITURES 1 935 443 801 862 616 434 3 353 739 2 805 750
EXCESS REVENUE (EXPENDITURES) 555 896 (489 513) (352 067) (285 684) 345 612
OTHER FINANCING SOURCES (USES)
Proceeds of bonds issued 322 698
Operating transfers in 40 000 954 425 994 425 508 119
Operating transfers out (601 500) (322 325) (923 825) (478 119)
TOTAL OTHER FINANCING SOURCES
(USES) (561 500) 632 100 70 600 352 698
EXCESS REVENUE AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES (5 604) (489 513) 280 033 (215 084) 698 310
FUND BALANCE, JANUARY 1 1 503 282 1 999 197 854 957 4 357 436 3 659 126
FUND EQUITY TRANSFER IN 426 732 105 115 531 847 2 287
FUND EQUITY TRANSFER (OUT) (450 837) (81 010) (531 847) (2 287)
FUND BALANCE, DECEMBER 31 $1 497 678 $1 485 579 $1 159 095 $4 142 352 $4 357 436
CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1993
Total
Debt Capital /Memorandum OnlYl
General Service proiects 1993 1992
REVENUE
General property taxes $1 515 633 $ 5 967 $ $1 521 600 $1 584 237
Licenses and permits 247 557 247 557 175 123
Intergovernmental 426 102 2 312 46 858 475 272 839 659
Charges for services 5 197 5 197 9 819
Fines and forfeitures 70 135 70 135 89 960
Miscellaneous
Special assessments 265 512 143 9 711 522 119 491 308
Interest on investments 86 374 79 384 29 170 194 928 226 460
other 38 647 75 907 114 554 83 231
TOTAL REVENUE 2 389 910 599 806 161 646 3 151 362 3 499 797
EXPENDITURES
Current
General government 668 410 668 410 654 085
Public safety 580 153 580 153 571 077
Public works 436 224 436 224 434 015
I Parks and recreation 119 473 119 473 116 173
-....I Capital outlay 595 101 595 101 1 746 617
Debt service
Principal 264 500 264 500 905 000
Interest and service charges 141 889 141 889 167 163
TOTAL EXPENDITURES 1 804 260 406 389 595 101 2 805 750 4 594 130
EXCESS REVENUE (EXPEND ITURES) 585 650 193 417 /433 455) 345 612 11 094 333)
OTHER FINANCING SOURCES (USES)
Proceeds of bonds issued 85 948 236 750 322 698
Operating transfers in 40 000 468 119 508 119 1 311 600
Operating transfers out /380 000) /22 910) /75 209) /478 119) 11 286 600)
TOTAL OTHER FINANCING SOURCES
(USES) /340 000) 63 038 629 660 352 698 25 000
EXCESS REVENUE AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES 245 650 256 455 196 205 698 310 ( 1 069 333)
FUND BALANCE, JANUARY 1 1 257 632 1 745 029 656 465 3 659 126 4 728 459
FUND EQUITY TRANSFER IN 2 287 2 287 620 291
FUND EQUITY TRANSFER (OUT) /2 287) /2 287) /620 291)
FUND BALANCE, DECEMBER 31 51 503 282 51 999 197 5854 957 54 357 436 53 659 126
CITY OF SHOREWOOD, MINNESOTA
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 1995
Budqet
REVENUE
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Special assessment
Interest on investments
Miscellaneous revenue
$1 491 888
169 900
440 720
32 000
84 000
75 000
17 500
TOTAL REVENUE
2 311 008
EXPENDITURES
General government
Public safety
Public works
Parks and recreation
745 562
669 420
445 601
126 177
TOTAL EXPENDITURES
1 986 760
EXCESS REVENUE (EXPENDITURES)
324 248
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
50 000
(404 225)
TOTAL OTHER FINANCING
SOURCES (USES)
(354 225)
EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES
$ (29 977)
FUND BALANCE, JANUARY 1
FUND EQUITY TRANSFERS OUT
FUND BALANCE, DECEMBER 31
111-8
Actual
$1 489 822
184 857
440 720
20 505
68 765
671
84 616
58 053
2 348 009
723 098
650 703
432 759
115 446
1 922 006
426 003
30 000
(404 225)
(374 225)
51 778
1 497 678
(5 108)
$1 544 348
Variance -
Favorable
(Unfavorable)
$ (2 066)
14 957
(11 495)
(15 235)
671
9 616
40 553
37 001
22 464
18 717
12 842
10 731
64 754
101 755
(20 000)
(20 000)
$ 81 755
111-9
CITY OF SHOREWOOD, KINNESOTA
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 1993
Variance -
Favorable
Budaet Actual (Unfavorable)
REVENUE
General property taxes $1 496 901 $1 515 633 $ 18 732
Licenses and permits 107 300 247 557 140 257
Intergovernmental 426 102 426 102
Charges for services 8 200 5 197 (3 003)
Fines and forfeitures 95 000 70 135 (24 865)
Miscellaneous
Special assessments 265 265
Interest on investments 50 000 86 374 36 374
other 110 500 38 647 (71 853)
TOTAL REVENUE 2 294 003 2 389 910 95 907
EXPENDITURES
General government 712 545 668 410 44 135
Public safety 594 531 580 153 14 378
Public works 431 773 436 224 (4 451)
Parks and recreation 146 054 119 473 26 581
TOTAL EXPENDITURES 1 884 903 1 804 260 80 643
EXCESS REVENUE (EXPENDITURES) 409 100 585 650 176 550
OTHER FINANCING SOURCES (USES)
Operating transfers in 40 000 40 000
Operating transfers out (471 600) (380 000) 91 600
TOTAL OTHER FINANCING
SOURCES (USES) (431 600) (340 000) 91 600
EXCESS REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES' $ (22 500) 245 650 $ 268 150
FUND BALANCE, JANUARY 1 1 257 632
FUND BALANCE I DECEMBER 31 $1 503 282
111-10
CITY OF SHOREWOOD, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
~L PROPRIETARY FUND TYPES
~~ ENDED DECEMBER 31, 1994
t
OPERATING REVENUE
Sales
Less cost of sales
$ 773 132
615 640
GROSS PROFIT
157 492
Charges for services
Permits and connection fees
964 404
154 512
GROSS PROFIT AND REVENUE
1 276 408
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Conununication
Insurance
Water purchases
Utilities
Metropolitan Waste Control Commission disposal charges
Rent
Advertising
Other
121 858
10 009
19 974
261 896
38 784
194 710
1 301
16 276
16 913
50 922
730 268
30 557
6 594
40 666
TOTAL OPERATING EXPENSES
1 540 728
OPERATING LOSS
(264 320)
OTHER REVENUE (EXPENSES)
General property taxes
Interest on investments
Other income
Interest expense
TOTAL OTHER REVENUE (EXPENSES)
LOSS BEFORE TRANSFERS
18 689
64 551
78 391
(4 035)
157 596
(106 724)
OPERATING TRANSFERS FROM OTHER FONDS
10 000
NET LOSS
(80 600)
(177 324)
OPERATING TRANSFERS TO OTHER FONDS
RETAINED EARNINGS, JANUARY 1
869 694
FUND EQUITY TRANSFER IN
232 604
FUND EQUITY TRANSFER OUT
(232 604)
$ 692 370
RETAINED EARNINGS, DECEMBER 31
111-11
CITY OF SHOREWOOD, MINNESOTA
COKBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
YEAR ENDED DECEMBER 31, 1993
OPERATING REVENUE
Sales
Less cost of sales
TOTAL OTHER REVENUE (EXPENSES)
INCOME BEFORE TRANSFERS
$1 336 773
1 071 829
264 944
852 399
107 622
1 224 965
168 035
12 759
22 494
255 742
33 640
154 133
1 267
19 791
10 807
54 070
376 959
49 436
4 233
40 226
1 203 592
21 373
11 745
3 172
64 008
5 606
(4 860)
79 671
101 044
(30 OOC)
71 044
798 650
S 869 694
GROSS PROFIT
Charges for services
Permits and connection fees
GROSS PROFIT AND REVENUE
OPERATING EXPENSES
Personal services
Supplies
Repairs and maintenance
Depreciation
Professional services
Contracted services
Communication
Insurance
Water purchases
Utilities
Metropolitan Waste Control Commission disposal charges
Rent
Advertising
other
TOTAL OPERATING EXPENSES
OPERATING INCOME
OTHER REVENUE (EXPENSES)
General property taxes
Property tax credits
Interest on investments
other income
Interest expense
OPERATING TRANSFERS TO OTHER FUNDS
NET INCOME
RETAINED EARNINGS, JANUARY 1
RETAINED EARNINGS, DECEMBER 31
111-12