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2016/06/20 - ADMIN - Agenda Packets - City Council - Regular
AGENDA JUNE 20, 2016 6:15 p.m. SPECIAL STUDY SESSION – Community Room Discussion Items 1. 6:15 p.m. 2017 Budget 2. 6:40 p.m. Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Written Reports 3. City Website Redesign Update 7:25 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes -- None 4. Approval of Agenda 5. Reports -- None 6. Old Business – None 7. New Business 7a. Second Amendment to the Preliminary Development Agreement with PLACE Recommended Action: Motion to Adopt EDA Resolution approving the Second Amendment to the Preliminary Development Agreement with PLACE. 8. Communications -- None 9. Adjournment 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. Alzheimer’s Disease Awareness Day Proclamation 2b. Lenox Foundation 30th Anniversary Proclamation 2c. Comprehensive Annual Financial Report for the Year Ending December 31, 2015 3. Approval of Minutes 3a. City Council Meeting Minutes May 16, 2016 Meeting of June 20, 2016 City Council Agenda Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5. Boards and Commissions -- None 6. Public Hearings -- None 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects Recommended Action: Motion to Adopt Resolution Awarding the Sale of General Obligation Bonds, Series 2016A. (The recommended action will require approval by at least 4 of the 7 City Councilmembers). 8b. Floodwall CUP and a Variance Request for Compensatory Flood Storage Recommended Action: Motion to Adopt Resolution granting a Conditional Use Permit (CUP) to add 1,175 cubic yards of fill due to construction of a floodwall subject to conditions recommended by staff. Motion to Adopt Resolution granting a Variance to allow excavation of 1,815 cubic yards of material to provide compensatory storage within a floodplain subject to conditions recommended by staff. 9. Communications – None Meeting of June 20, 2016 City Council Agenda CONSENT CALENDAR 4a. Adopt Resolution approving the Second Amendment to the Preliminary Development Agreement with PLACE. 4b. Approve the Second Reading and Adopt Ordinance vacating right-of-way, and to approve the ordinance summary for publication. 4c. Adopt Resolution designating 2016 polling places and appointing Election Judges for the August 9, 2016, State Primary Election and the November 8, 2016, Presidential General Election. 4d. Adopt Resolutions authorizing the submission of grant applications as part of the Metropolitan Council Regional Solicitations process. 1) Dakota-Edgewood Trail Bridge Crossing 2) CSAH 25/Beltline Pedestrian Improvements St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting: Special Study Session Meeting Date: June 20, 2016 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: 2017 Budget RECOMMENDED ACTION: No formal action required. This report is to assist with the Study Session discussion to share information and gain understanding regarding the preparation of the 2017 Budget. POLICY CONSIDERATION: Does the 2017 Budget process and timeline meet Council expectations? Is the general direction outlined for 2017 Budget recommendations in line with Council expectations? Does Council have any changes on the budget production guidelines? Is there other information that Council would like to review in more detail in the upcoming process? Are there any other service delivery changes Council would like to have considered? Are there other discussion areas Council would like to add or change? What is the Council’s propensity to consider setting the Preliminary Property Tax Levy above the 10 year average levy increase of 4.45% due to various factors impacting the City’s budget in 2017? SUMMARY: Staff is working on preparing budget recommendations for 2017. During the Study Session, staff wants to make sure Council is comfortable with the attached budget guidelines. As listed above, staff also would like direction on any major changes, programs, or policy considerations that should be deliberated as part of preparing the 2017 Budget. As in the past, the guidelines will be used to give direction to staff when preparing the 2017 recommendations. FINANCIAL OR BUDGET CONSIDERATION: Details regarding financials are provided in this report. VISION CONSIDERATION: All vision areas are taken into consideration and are an important part of our budgeting process. SUPPORTING DOCUMENTS: Discussion 2017 Budget Production Guidelines 2017 Preliminary Budget Calendar Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Special Study Session Meeting of June 20, 2016 (Item No. 1) Page 2 Title: 2017 Budget DISCUSSION BACKGROUND: The purpose of the discussion is to make sure staff is in line with Council expectations in preparing 2017 Budget recommendations. Staff is planning to continue to use budget guiding principles as well as Vision and Council goals, and the key organizational cultural behaviors of Collaboration, Quality and Responsiveness. This Study Session discussion is intended to be at the higher level and, based on the direction provided, will allow staff to then prepare more detailed budgetary information for Council to consider with which to assist in setting property tax levies, fees and utility rates for 2017. 2017 Budget Preparation: In upcoming sessions, the City Council will be provided with more detail on budget recommendations, with time allowed for review of materials and questions. Directors or their designees will also be present for questions or sharing information as needed or requested. All budgets, Capital Improvement Plan (CIP), Long Range Financial Management Plan (LRFMP), fee schedules, utility rates and relevant information will be included in future materials. Budget Webpage and E-mail: As Council is aware, in an effort to provide a more transparent budget process, staff has created a webpage on the City’s website and an e-mail address for any questions that arise. The link is: http://www.stlouispark.org/finance/city-budget.html and the e-mail address is: budget@stlouispark.org. Following tonight’s budget kickoff meeting, staff will start updating the webpage and activate the e-mail address again. Legislative directives: There are no levy limits in place for 2017. Local Government Aid has not been certified yet, but preliminary estimates from May show St. Louis Park will receive $545,474, which is $6,040 more than the $539,434 certified for 2016. The tax bill that was not signed did show our amount going up to $627,275. These dollars go into the Capital Replacement Fund. Staffing Costs wages: Funds for staffing are the largest expenditure of the City’s operating budget. In building the 2017 budget recommendations, a wage adjustment of 2.75% is being used as an assumption. As a reminder, Dispatch and Local 49 Maintenance contracts are settled for two years 2016 & 2017, Patrol and Sergeants are still in active negotiations for 2016, Fire settled for one year and is open in 2017. PERA Coordinated Plan: Employee contribution of 6.50% of salary and employer contribution of 7.50% of salary in 2016 will remain the same at this point in 2017. PERA Police and Fire: Employee contribution of 10.8% and employer contribution of 16.2% in 2016 will remain the same at this point in 2017. Benefits: For 2017, staff will be asking for renewal quotes either with our current carrier or going out to multiple carriers. Staff continues to work with the City’s benefits consultant and internal benefits committee on cost containment on claims. The wellness benefit for 2016 was set at $40 per employee per month and is recommended to remain the same in 2017. A very preliminary general employer benefit contribution increase has been estimated. Based on experience and trend we estimate an overall increase of 12% for 2017 and this will be included as a recommendation to Council and in the budgets for 2017 later this summer. Operational Costs: Staff is being asked to look at how operational costs have been changing with the ever changing market conditions, as well as planning ahead for operational needs with focus Special Study Session Meeting of June 20, 2016 (Item No. 1) Page 3 Title: 2017 Budget areas relating to the environment, trails and sidewalks, transportation, ongoing development, continued strength in public safety, fire prevention, neighborhoods and housing. Energy costs will continue to be monitored closely given the potential for volatility in this sector of the economy. Program Support: SWLRT: Staff resources have been reallocated to meet increased demand for this plan and staffing needs are being analyzed to meet other on-going projects within the City. Increases in consultant costs from SWLRT have been and will continue to be paid from the Development Fund when appropriate. Vision/Comprehensive Plan Update: Preliminary work continues with undertaking a community visioning process later this year that will help inform the required update of our comprehensive plan by December 2018. Staff will be working with consultants and many departments on various pieces of this plan. Race and Equity work: Building organizational awareness and advancements in this area will continue in 2017 and beyond. In 2016, a group of staff and elected officials joined in with other agencies in a year-long program from the League of Minnesota Cities and Center of Social Inclusion. The objective is to understand the role of government in relation to racial equity and develop tools to help us better address race and equity issues in our organization. Maintenance and Service Delivery: Department Heads may be making recommendations as needed on service delivery that may include additional personnel or consulting. The focus is to continue providing a high level of quality and responsive service to our constituents. Environmental: Staff will continue to support the environment and sustainability initiatives. One focus area will be continued work on climate resilience and planning. Other work will include education and understanding of the environmental purchasing policy and working on other initiatives in this area. Utility Funds: All utility funds will be presented during the budget process as in previous years with a review of rates in accordance with the City’s Long Range Financial Management Plan (LRFMP). As in previous years, all utility rates are analyzed, adjusted as needed to meet operational and capital needs, while also working to meet appropriate cash position guidelines. Over the next several months staff from various departments will gather to review the utility funds, to review rate structures in conjunction with short term and longer term program needs. Water: For 2017, the City will be in the seventh year of the ten year plan for increasing the fixed rate charges to reduce volatility in the fund due to seasonal usage fluctuations. Usage rates will also be increased to meet more aggressive demands for infrastructure replacement within the City’s aging system. Significant expenses for this fund are capital, staffing, the Reilly Superfund site and debt service. As directed by Council, staff will further study water conservation, irrigation and rates in 2016-17 to prepare for future recommendations. Sewer: Rates are also expected to increase due to the City’s more aggressive infrastructure replacement plan. Sewer costs are mainly to support the Metropolitan Council Environmental Services charge (MCES), staffing and capital costs. Solid Waste: Rates for this fund are expected to increase to continue to support more of a pay as you throw type rate structure. Rates may also vary depending on any enhanced or new initiatives the Council would like to pursue with multi-family recycling and organics. Special Study Session Meeting of June 20, 2016 (Item No. 1) Page 4 Title: 2017 Budget For example, the Council has discussed in the past charging all residential customers for organics recycling. The major expenses for this fund are the contract charges and staffing. Storm Water: With the interest Council and community has in surface water, staff will continue to develop, modify, connect and communicate programs to both the City Council and the community. Based on Council direction to place more emphasis on storm water management, along with increasing regulations, rates will need to continue to be adjusted over the next three to four years. These increases will help meet the increased capital needs and debt service obligations. Significant expenses for this fund currently are capital and staffing. Franchise Fees: In the past, Council has directed staff to consider franchise fee adjustments every odd numbered year. For the 2017 Budget, based on the direction Council is taking on funding the construction of concrete alleys, unimproved streets and rehabilitating commercial streets, it is likely the franchise fees will be recommended for adjustment in 2017 and 2019. Staff is currently negotiating a new franchise fee agreement as the previous one expired at the end of the year. Fees, Charges and Other Revenues: Staff will continue to review current fee data based on cost analyses and other communities before making recommendations for the 2017 Fee Schedules for the Council to consider later this year. LRFMP (Long Range Financial Management Plan): This document will be presented at future meetings with Council to assist in setting property tax levies, debt management, fees, utility rates and budgets. CIP (Capital Improvement Plan): Staff has completed the first round work on the CIP (2017- 2026). This information has been programmed into the LRFMP and Finance is analyzing the results in an effort to create long-term sustainability in funds and also looking at where changes in funding or expenditures/expenses need to occur for the City Council and City Manager to consider. Trends in Valuations and Possible Property Tax Implications: For the 2016 assessment, St. Louis Park’s taxable market value increased by 8.1% with all of the dominant property types increasing in value. Composition of the change is summarized as +5.3% for single-family homes, +10.6 for condos, +6.7 for townhomes, +17.8% for apartments, and the commercial-industrial sectors at +9.6%. As can be surmised by the above figures, there will be a shift of the property tax burden to commercial, condos, and apartment properties for the Payable 2017 tax period. This shift will be mitigated somewhat when considering all taxing jurisdictions that make up the typical property tax bill (in the aggregate, other County jurisdictions increased at higher rates for single-family homes but at lower rates for apartments and commercial properties). City Property Tax Levy: As a point of reference, the City’s 10 year average property tax levy increase is 4.45%. As the year progresses, and more firm information becomes available, staff will bring property tax levy recommendations and the potential impact on property owners for Council to consider. Before this occurs though, and in preparation to bring budget and property tax levy recommendations to the Council, staff would like to have Council consider the following questions: 1) What is the Council’s propensity to consider setting the Preliminary Property Tax Levy above the 10 year average levy increase of 4.45% due to various factors impacting the City’s budget in 2017? These factors relate to staffing costs associated with Program Support items noted earlier, growth in the demand for services, and debt service, among other items. Special Study Session Meeting of June 20, 2016 (Item No. 1) Page 5 Title: 2017 Budget HRA Property Tax Levy: Based on current and future infrastructure needs, the HRA Levy is recommended to be set at the maximum allowed of 0.0185% of estimated market value, which is consistent with previous years. This levy is committed to pay back a loan from the Development Fund that helped cash flow the City’s obligation for Highway 7 and Louisiana and is expected to be paid off in 2021 or earlier. City and HRA Tax Levies: The Council and EDA will meet to adopt preliminary 2017 levies on September 19 for the City and September 6 for the HRA. After adoption of the preliminary property tax levies, the levies may be reduced, but not increased. The preliminary property tax levies that are adopted will then be used to determine the preliminary property taxes on the statements that Hennepin County mails out in November to all property owners. NEXT STEPS: As the 2017 budget process continues, the following preliminary schedule snapshot has been developed for Council: July 25 (If necessary) Review and discussion of 2017 budget August 22 (If necessary) Review and discussion of 2017 budget September 6 (Tues) High level 2017 Budget, CIP, fees, utility rates discussion, and adopt HRA levy. Department Directors or their designees will also be in attendance. This meeting will be more of a proposed preliminary levy discussion with direction provided to staff to prepare information for the September 19th meeting adopting preliminary levies. September 19 Council establish 2017 preliminary property tax levy. (Levies can be reduced, but not increased for final property tax levies.) October 10 Review and discussion of 2017 budget, CIP, utility rates and LRFMP. Directors or their designees in attendance as needed. October 17 Public Hearing - 1st Reading of Fees, and adoption of 2017 Utility Rates November 7 (If necessary) Final budget or CIP discussion prior to Truth in Taxation Public Hearing and budget presentation. 2nd Reading of Fee on Consent. December 5 Truth in Taxation Public Hearing and budget presentation December 12 (If necessary) Continuation of Public Hearing and any budget discussion. December 19 Council adopts 2016 Revised Budget, 2017 Budgets, final tax levies (City and HRA), and 2017 - 2026 CIP. Special Study Session Meeting of June 20, 2016 (Item No. 1) Page 6 Title: 2017 Budget 2017 Budget Production Guidelines For the 2017 Budget cycle, please follow the assumptions or use the forms discussed below: 1. Review Past Expenditures and Revenues: Historical information is available in Hubble, the City’s budgeting software; transaction detail can be viewed by double clicking in a cell. As in past years, staff is again being asked to prepare budgets that are close to anticipated expenditures. Line items should not be over budgeted to prepare for some excessive or unexpected emergency. This is why the City maintains fund balance in many funds when possible. The same review should happen if you find that you are continually under budgeting expenditures, please increase accordingly to cover anticipated expenditures. 2. Fees and Charges for Services: These should all be reviewed, with the goal to cover the City’s costs where appropriate. Please use 3% as a minimum guide for 2017 fee increases being aware of the City’s fees and charges for services when compared to neighboring communities. Important note: What new services do you have that should have fees? Or what fees are no longer applicable? Now is the time to make changes for 2017. Fee information will be handled by Finance now for the budget process. 3. Business as Usual: Continue with the City’s high standards of service delivery and responsiveness to customers. 4. All budget requests are due July 1st, 2016. a. Changes in Staffing Requests Forms - Due July 1, 2016 to HR: Changes in staffing, including recommendations to add, increase or decrease hours, shifts, etc., should be included in the budget request and a detailed justification is required by July 28th. Staffing request forms should be used for regular, seasonal, temporary, intern, volunteer and contract type positions. Please discuss estimates on salary levels and benefits with the HR Coordinator. Incomplete forms will be sent back to departments for completion. When making staffing requests, remember to include any costs for equipment, tools, uniforms, etc., based on the type of work along with your statement of business need and anticipated services delivery. b. Changes to Line Items Budget Form Exceeding $1,000 - Due July 1, 2016 to Finance: Provide an explanation for changes in business operations on the form when you are adding, deleting, modifying or updating your business operation. This helps in understanding the requested change in the budget and in recommending a preliminary property tax levy to the City Council. If you have a program change, addition or deletion that increases or decreases a line item by $1,000 or more, this form must also be submitted to Finance by July 1, 2016. 5. Vision: As always, keep Vision in consideration during budget and long range planning. 6. 2015 – 2025 Goals and Strategies: Staff will review the draft documents for the 2015 – 2025 goals and strategies developed by Council and incorporate them into the 2017 budget and future considerations. 7. Collaboration, Quality, and Responsiveness: The budgeting process is a great time to incorporate changes and it will allow for continued conversation with the City Manager on service delivery. Please take the time to think progressively while anticipating community needs on programs, processes, and customer service to align budgets that will allow you to bring your ideas to life. City of St. Louis Park 2017 Budget Calendar Date Department(s) Description March 30, 2016 All 2017–2026 Capital Improvement Plan (CIP) is available for update. May 13, 2016 @ 4:30 pm All CIP access restricted to Read-Only May 17, 2016 All Meet with Departments to set direction and discuss any significant changes in business May 17 @ 4:30 pm All All 2017 Budget worksheets available in Insight/Hubble to all departments. All revenues and expenditures are to be budgeted including review of fee schedule and Utility Rate Analyses. May 31, 2016 All Salary allocations due to HR/Accounting June 20, 2016 C.M./Accounting Study Session with Council to discuss 2017 Budget and assumptions June 24, 2016 HR/Accounting All salary information entered into Insight/Hubble July 1 @ 4:30pm All Forms for changes in staffing requests and major changes in programs due to Accounting. Building revenue projections due to Accounting. July 1 @ 4:30 pm All 2017 Proposed Budget worksheets and fees due. Access to Read-Only. July 11 – 22 @ 4:30pm All 1st Review/Edit of 2017 – 2026 CIP by Departments July 25, 2015 C.M/Accounting Study Session with City Council on 2017 Budget Aug. 1 – 12 Each Department Individual review of budgets – CM, Dep. CM, Director, and Acctg. August 22, 2016 C.M/Accounting Study Session with City council on 2017 Budget September 6 (Tues) City Manager, Dept. Directors and Accounting High level 2017 Budget, CIP, Utility Rates discussion by City Council, with City Manager, Department Directors and Accounting in attendance. Adopt HRA levy. More of a proposed levy discussion. Sept. 7 – 16 @4:30 pm All 2nd and Final Review/Edit of 2017 – 2026 CIP by Departments September 19, 2016 C.M./Accounting Approval of Preliminary 2017 Budgets, Tax Levies and Franchise Fees (if applicable) by Council and/or EDA. By September 30, 2016 Accounting Certification of 2017 Preliminary Property Tax Levy due to Hennepin County and levy reports due to State of Minnesota October 10 C.M., Directors and Accounting Review and discussion of 2017 Budget, CIP, Utility Rates and LRFMP review and discussion by City Council. October 10 – 21 All Final review of all 2017 revenues and expenditures for all funds. In addition, review of the CIP, Utility Rates and LRFMP. October 17 Accounting/Clerk Adoption of 2017 Utility Rates and 1st Reading of Fees. – To Sun Sailor by 9/29 for publication October 21 @ 4:30 pm All Final changes submitted to City Manager/Deputy C.M. and Controller November 7 (if needed) CM/Admin/Acctg/ Clerk Final Budget or CIP Discussion with City Council prior to TNT. 2nd Reading of Fees Ordinance on Consent December 5, 2016 Accounting Truth in Taxation Public Hearing and Budget Presentation December 12 (if needed) C.M./Accounting Council discussion of any 2017 Budget related items (if necessary) December 19, 2016 C.M./Accounting 2017 Budget, Final Property Tax Levies (City and HRA), and 2017 – 2026 CIP approved by Council. By December 28, 2016 Accounting Certification of tax levy and other required forms – Due 12-30-16 January, 2017 Admin Services Budget completed, printed (if necessary) and on City website. Report due to OSA 1/31/2017 Note: Items in blue are meetings with the City Council Special Study Session Meeting of June 20, 2016 (Item No. 1) Title: 2017 Budget Page 7 Meeting: Special Study Session Meeting Date: June 20, 2016 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 – Auditors Discussion and Review RECOMMENDED ACTION: No action required. POLICY CONSIDERATION: Is the City Council satisfied that the information contained in the Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, Report on Minnesota Legal Compliance, and Report on Internal Control over Financial Reporting for the year ended December 31, 2015 will allow for effective decision making? SUMMARY: The city is required to have an annual independent audit of its financial statements in which the audit firm issues an opinion on the financial statements. The city received a clean audit opinion, or “unmodified opinion”, which means that Redpath and Company believe the financial statements, as presented by city staff, fairly represent the city’s financial condition as of December 31, 2015. David J. Mol – Partner from Redpath and Company, will present the information and key financial points with the City Council. For 2015, the city was required to implement Governmental Accounting Standards Board (GASB) Statement No. 68 – which now requires the city to record our proportionate share of PERA’s net pension liability in the Government-wide financial statements. This does not require us to change our funding/budgeting as we continue to budget the percent of wages required by state statute. Once the City Council reviews the CAFR for 2015, it will be submitted to the Office of the State Auditor as required and also submitted to the Government Finance Officers Association (GFOA) to be considered for the Achievement for Excellence in Financial Reporting certificate program for which the City of St. Louis Park has been recognized for 32 consecutive years by June 30, 2016. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park continues to remain in a strong financial condition with a AAA bond rating VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: 1) 2015 – Comprehensive Annual Financial Report 2) 2015 – Issued Governance Letter 3) 2015 – Minnesota Legal Compliance Report 4) 2015 – Internal Control over Financial Reporting Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Comprehensive Annual Financial Report For the Year Ended December 31, 2015 CCiittyy ooff SStt LLoouuiiss PPaarrkk,, MMiinnnneessoottaa Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 2 - This page intentionally left blank - Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 3 CITY OF ST. LOUIS PARK, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2015 Thomas Harmening – City Manager Prepared by: Finance Division Member of the Government Finance Officers’ Association Of the United States and Canada Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 4 - This page intentionally left blank - Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 5 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 9 Services Chart 10 Officials of the City of St. Louis Park 11 II. FINANCIAL SECTION Independent Auditor's Report 15 Management's Discussion and Analysis 19 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 35 Statement of Activities Statement 2 36 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 38 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 4 40 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 43 Statement of Net Position - Proprietary Funds Statement 6 44 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 46 Statement of Cash Flows - Proprietary Funds Statement 8 48 Notes to Financial Statements 53 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 100 Schedule of Funding Progress - Post Employment Benefit Plan Statement 10 104 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 11 105 Schedule of Pension Contributions - General Employees Retirement Fund Statement 12 106 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 13 107 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 14 108 Notes to RSI 109 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 6 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 15 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 16 119 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds Statement 17 122 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 18 123 Capital Projects Funds: Combining Balance Sheet - Nonmajor Capital Projects Funds Statement 19 126 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Projects Funds Statement 20 127 Debt Service Funds: Combining Balance Sheet - Major Debt Service Funds Statement 21 130 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Major Debt Service Funds Statement 22 133 Redevelopment District Funds: Combining Balance Sheet - Major Redevelopment District Funds Statement 23 138 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Major Redevelopment District Funds Statement 24 142 Internal Service Funds: Combining Statement of Net Position Statement 25 148 Combining Statement of Revenues, Expenditures and Changes in Fund Net Position Statement 26 149 Combining Statement of Cash Flows Statement 27 150 General Fund: Balance Sheet Statement 28 154 Summary Financial Schedule: Schedule of Revenues and Expenditures for General Operations - Governmental Funds Statement 29 155 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 7 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Position by Component Table 1 158 Changes in Net Position Table 2 160 Governmental Activities Tax Revenues by Source Table 3 165 Fund Balances of Governmental Funds Table 4 166 Changes in Fund Balances - Governmental Funds Table 5 168 Revenue Capacity: Assessed Value/Tax Capacity Value and Estimated Market Values of all Taxable Property Table 6 170 Property Tax Rates - Direct and Overlapping Governments Table 7 172 Principal Property Taxpayers Table 8 173 Property Tax Levies and Collections Table 9 174 Debt Capacity: Ratios of Outstanding Debt By Type Table 10 175 Ratios of General Bonded Debt Outstanding Table 11 176 Direct and Overlapping Governmental Activities Debt Table 12 177 Legal Debt Margin Information Table 13 178 Pledged Revenue Bond Coverage Table 14 180 Demographic and Economic Information: Demographic Statistics Table 15 181 Principal Employers Table 16 182 Operating Information: Full-Time Equivalent Employees by Function Table 17 183 Operating Indicators by Function Table 18 184 Capital Asset Statistics by Function Table 19 185 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 8 - This page intentionally left blank - Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 9 I. INTRODUCTORY SECTION 1 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 10 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 June 7, 2016 Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Minnesota statutes require all cities to issue an annual report on its financial position and activity prepared in accordance with generally accepted accounting principles (GAAP), and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants, or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of St. Louis Park for the fiscal year ended December 31, 2015. This report consists of management’s representations concerning the finances of the City of St. Louis Park. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of St. Louis Park established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation for the City of St. Louis Park’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of St. Louis Park’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of St. Louis Park’s financial statements have been audited by Redpath and Company, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of St. Louis Park for the fiscal year ended December 31, 2015, are free of any material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of St. Louis Park’s financial statements for the fiscal year ended December 31, 2015, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. 2 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 11 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the Government The City of St. Louis Park, established in 1886, is a first ring community located immediately west of Minneapolis. Thanks to its convenient location, St. Louis Park combines all the cultural amenities of a large metropolitan area with small town friendliness. The City of St. Louis Park currently occupies a land area of 10.8 square miles and serves a population of 48,354. The City of St. Louis Park is empowered to levy a property tax on both real and personal properties located within its boundaries. While it also is empowered by state statutes to extend its corporate limits by annexation, St. Louis Park is a completely developed community and is bordered on all sides by other incorporated communities. St. Louis Park operates under the council/manager form of government. Policy-making and legislative authority are vested in a City Council consisting of a mayor, two at-large council members, and four ward council members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the council, for overseeing the day-to-day operations of the City government, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four-year staggered terms. The City of St. Louis Park provides a full range of services, including police and fire protection; redevelopment, the construction and maintenance of highways, streets, and other infrastructure; water, sewer, storm water, and refuse services, as well as recreational activities and cultural events. The annual budget serves as the foundation for the City of St. Louis Park’s financial planning and control. All departments and agencies of the City of St. Louis Park submit requests for appropriation to the City Manager in July of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review prior to adoption of a preliminary tax levy by September 30. The council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 28. 3 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 12 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 The appropriated budget is prepared by fund, (e.g. General), function (e.g., public safety), and department (e.g., police). Department directors may make transfers of appropriation within a department, but not between personnel and non-personnel categories. Transfers of appropriations between funds, however, require the approval of the City Council. Budget to actual comparisons are provided in this report for the general fund for which an appropriated annual budget has been adopted. These comparisons are presented starting on page 100. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of St. Louis Park operates. Local economy The City of St. Louis Park currently enjoys a durable economic environment and local indicators point to continued stability versus other communities in the Twin City Metro Area. The City of St. Louis Park has a well-diversified tax base, with a sizeable full valuation that includes retail, manufacturing, and health care components, as well as diverse housing stock. Redevelopment and Development efforts remain very strong in St. Louis Park. Redevelopment/Development The City of St. Louis Park is committed to evaluating, preserving, and improving the housing stock available within the community. It is important that a wide variety of housing alternatives be available within the community. Redevelopment projects over the past ten years have provided a mix of apartment, co-op, condominium, town-home, and single family units. Many of these housing developments contain a commercial component including both retail and services to support the new housing and create more livable neighborhoods. The City has used its tax increment financing authority in many of these projects in order to meet specific community and economic development objectives. Some of the larger projects include: Millennium at West End Apartments, 5245 Wayzata Boulevard. The former Chili’s restaurant located on Wayzata Blvd has been replaced with a 6-story “urban influenced” apartment building. The $30 million Millennium at West End includes 158 upscale apartment units and two levels of underground structured parking. Amenities include terraces with a pool, trellises, outdoor “pocket park”, dog walk area, raised vegetable garden beds, gas grills, fire pit, seating areas, and a top floor community room offering views of downtown Minneapolis. 4 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 13 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 Siena Apartment Homes, 6800 Cedar Lake Road. The former vacant Eliot School building on Cedar Lake Rd has been replaced with two upscale apartment buildings and two new single family homes are expected in 2016. The development features a total of 138 market rate housing units, underground parking for residents and 20 stalls of surface parking for guests along a private driveway between the two buildings. Westside Center (former Nestlé building), 5320 23rd St W. Hillcrest Development purchased the former Nestlé manufacturing plant in 2014 and is repurposing it into a multi- tenant office and industrial facility featuring large, leasable spaces. The improvements include a full renovation of the former 256,000 square foot facility and a 36,000 sq. ft. building addition, new storm water management, new landscaping, lighting upgrades, expanded parking, and expanded outside storage with completion by the summer of 2016. The project has attracted such companies as Zerorez, The Fish Guys, Lyman Lumber, and Real Resources and is projected to add over 400 new jobs upon full lease-up. Shoppes at Knollwood, 8332 Highway 7. The venerable Knollwood Mall recently underwent a $32 million transformation and has been rebranded the Shoppes at Knollwood. The renovation included removing the interior mall located between Kohl’s and TJ Maxx and replacing it with approximately five junior box retailers, including Nordstrom Rack, Ulta, and Dress Barn. In addition, a separate three-tenant commercial building was constructed in the parking lot. The renovation also involved redesigning a major portion of the parking lot to improve traffic and pedestrian flow along with the installation of storm water, lighting, and landscaping improvements. Oak Hill II Professional Building, 3340 Republic Ave. Anderson Companies constructed its second medical office building at the NE corner of the newly completed Highway 7 and Louisiana Ave interchange. Oak Hill II is a prominent two-story, 21,500 sq. ft. office structure built immediately adjacent to Oak Hill I. Oak Hill II serves as the new corporate headquarters for Anderson Companies as well as home to Creekside Dental. Central Park West, I-394 and Highway 100. Five more buildings are proposed for construction at The West End at I-394 and Highway 100. The new phases include two 6- story multiple-family residential buildings, a 6-story limited service hotel, two 11-story office buildings, a 2,534-stall parking ramp, and a central gathering space. At full build- out, the multi-phase development proposes 363 apartment units (with 11 affordable units), 126 hotel rooms, and 706,706 sq. feet of Class A office space. The project, which began in 2015, also includes the reconstruction of Utica Avenue along the west boundary of the development. 5 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 14 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 Park Nicollet Methodist Hospital Expansion, 6500 Excelsior Blvd. Park Nicollet Methodist Hospital has embarked on a multi-year expansion of its medical campus on Excelsior Blvd. A two-story vertical expansion on the east side of the building will add 38,334 sq. feet for new in-patient private rooms. A one-story vertical expansion on the hospital’s west side will provide an additional 20,535 sq. feet for new surgical services. The project also includes converting most existing semi-private rooms into private rooms. Redevelopment interest continues to remain strong in St. Louis Park and other proposals and inquiries are being considered for multi-family and mixed use projects. The City also sponsors a comprehensive rehabilitation loan program available to single family and multi-family homeowners. The first programs were started in the mid 1970’s and have evolved into a comprehensive set of programs to ensure the preservation and enhancement of the City’s housing stock. Finally, the City has a Convention and Visitors Bureau, which markets the desirability of St. Louis Park for both business and recreational opportunities. This continues to be a very strong partner with the City of St. Louis Park which has brought increased business and activities to the City. Long-term Financial Planning The City maintains a 10 year Long Range Financial Management Plan that incorporates anticipated revenues, expenditures, capital outlay, and tax impacts for all relevant funds. The plan anticipates opportunities or challenges, allows for changes to then be made, with the goal of achieving long-term sustainability. The plan is used in conjunction with the annual budget process and Capital Improvement Plan, which then allows the City Council to evaluate various budget decisions prior to adoption. This plan has proven its value by playing a significant role in maintaining the City’s AAA bond rating from Standard & Poor’s, which assists in keeping the costs of borrowing for the City of St. Louis Park at a low rate. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of St. Louis Park for its comprehensive annual financial report for the fiscal year ended December 31, 2014. This was the thirty-second consecutive year that the government received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. 6 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 15 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Accounting Department and other key City of St. Louis Park personnel. We would like to express our appreciation to all members of the organization who assisted and contributed to the preparation of the report. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of St. Louis Park’s finances. Respectfully submitted, Thomas Harmening Timothy Simon City Manager Controller 7 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 16 - This page intentionally left blank - 8 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 17 9Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015Page 18 SERVICES CHART Citizens City Council City Manager Boards & Commissions Board of Zoning Appeals Human Rights Planning Police Advisory Fire Civil Service Parks & Recreation Telecommunications Advisory Environment & Sustainability ADMINISTRATIVE SERVICES Records General Admin Human Resources Payroll Org Development Elections City Clerk Accounting Assessing COMMUNITY DEVELOPMENT Planning/Zoning Economic Development Housing INFORMATION RESOURCES Cable Television Technology Services Support Services WEB Communications & Marketing INSPECTIONS Code Enforcement Building Housing Environmental Health Facility Maintenance Licensing OPERATIONS & RECREATION Rec Ctr & Programs Nature Center Environmental Parks Fleet Utility Operations Streets/Traffic Refuse/Recycling Public Art POLICE Patrol Support Services Crime Prevention 911 Dispatch Animal Control Community Outreach & Neighborhoods ENGINEERING Engineering Projects Water Resources FIRE Fire Prevention Fire Suppression EMS/Rescue Emergency Preparedness Auditors Legal Charter Commission Economic Development Authority Housing Authority 10 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 19 OFFICIALS OF THE CITY OF ST. LOUIS PARK Council Jeff Jacobs Mayor EDA Commissioner Term Expires 1/2016 Steve Hallfin At-Large A Councilmember EDA Vice President Term Expires 1/2016 Jake Spano At-Large B Councilmember EDA Treasurer Term Expires 1/2016 Susan Sanger Ward 1 Councilmember EDA Commissioner Term Expires 1/2018 Anne Mavity Ward 2 Councilmember EDA President Term Expires 1/2018 Gregg Lindberg Ward 3 Councilmember EDA Commissioner Term Expires 1/2018 Tim Brausen Ward 4 Councilmember EDA Commissioner Term Expires 1/2018 Executive Staff Thomas Harmening, City Manager Nancy Deno, Deputy City Manager/Human Resources Director John Luse, Police Chief Steve Koering, Fire Chief Kevin Locke, Community Development Director Brian Hoffman, Inspections Director Timothy Simon, Controller Debra Heiser, Engineering Director Clint Pires, Chief Information Officer Cindy Walsh, Operations & Recreation Director 11 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 20 - This page intentionally left blank - 12 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 21 II. FINANCIAL SECTION 13 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 22 - This page intentionally left blank - 14 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 23 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 15 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 24 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of December 31, 2015, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Notes 7 and 16 to the financial statements, City of St. Louis Park, Minnesota adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December 31, 2015. Our opinion is not modified with respect to this matter. Report on Summarized Comparative Information We have previously audited the City of St. Louis Park, Minnesota’s 2014 financial statements, and we expressed an unmodified audit opinion on the respective financial statements of the governmental activities and each major fund in our report dated May 26, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2014 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison, the OPEB Schedule of Funding Progress, the Schedules of Proportionate Share of Net Pension Liability, the Schedules of Pension Contributions, and the Notes to the Required Supplementary Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide 16 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 25 any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, summary financial schedule, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and the summary financial schedule are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules and summary financial schedule, are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 7, 2016, on our consideration of the City of St. Louis Park, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Louis Park, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 7, 2016 17 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 26 - This page intentionally left blank - 18 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 27 City of St. Louis Park Management’s Discussion and Analysis As management of the City of St. Louis Park, we offer readers of the City of St. Louis Park’s financial statements this narrative overview and analysis of the financial activities of the City of St. Louis Park for the fiscal year ended December 31, 2015. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which starts on page 2 of this report. Financial Highlights The assets of the City of St. Louis Park exceeded its liabilities at the close of the most recent fiscal year by $165,935,603 (net position). Of this amount, $18,425,979 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors. Net position of the government-wide financial statements was impacted in the current year by ($17,888,061) due to the required implementation of a new accounting standard. This is more fully described on page 97. The government’s total change in net position was $386,188. As of the close of the current fiscal year, the City of St. Louis Park’s governmental funds reported combined ending fund balances of $62,986,398. Approximately 84 percent of this amount, $52,699,771 is available for use within the City’s constraints and policies. At the end of the current fiscal year, unassigned fund balance for the General fund was $15,242,009 (45 percent) of the total subsequent year budgeted General fund expenditures. The City of St. Louis Park’s total bonded debt did not increase during 2015. Principal paid during the year was $4,725,000. Overview of the Financial Statements The discussion and analysis are intended to serve as an introduction to the City of St. Louis Park’s basic financial statements. The City of St. Louis Park’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. 19 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 28 City of St. Louis Park Management’s Discussion and Analysis Figure A-1 shows how the various parts of this annual report are arranged and related to one another. Figure A-1 Annual Report Format Government-wide financial statements – The government-wide financial statements are designed to provide readers with a broad overview of the City of St. Louis Park’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the City of St. Louis Park’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of St. Louis Park is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of St. Louis Park that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of St. Louis Park include general government, public safety, public information, operations and recreation, engineering, housing and rehabilitation, housing maintenance, social and economic development, and interest on long-term debt. The business-type activities of the City of St. Louis Park include sewer, solid waste, storm water, and water operations. 20 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 29 City of St. Louis Park Management’s Discussion and Analysis The government-wide financial statements start on page 35 of this report. Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of St. Louis Park, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of St. Louis Park can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of St. Louis Park maintains eight individual major governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, one special revenue fund, debt service, and five capital project funds, all of which are considered to be major funds. Data from the other seven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City of St. Louis Park adopts annual appropriated budgets for the General Fund. Budgetary comparison statements are provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 38 of this report. Proprietary funds – The City of St. Louis Park maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of St. Louis Park uses enterprise funds to account for its sewer, solid waste, storm water, and water operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer, solid waste, storm water, and water operations, all of which are considered to be major funds of the City of St. Louis Park. 21 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 30 City of St. Louis Park Management’s Discussion and Analysis Internal service funds – These funds are an accounting device used to accumulate and allocate costs internally among the City of St. Louis Park’s various functions. The City of St. Louis Park uses internal service funds to account for maintaining its fleet of vehicles, management information systems, replacement of City equipment, employee administration, compensated absences, pension benefit and uninsured losses. Because all of these services predominately benefit governmental rather than business- type functions, they have been included within governmental activities in the governmental-wide financial statements. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements starts on page 44 of this report. Notes to the financial statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 53 of this report. Other information – The combining statements referred to earlier, in connection with non-major governmental funds and internal service funds, are presented immediately following the required supplementary information. Combining and individual fund statements and schedules start on page 115 of this report. Other reports – Additional information related to the General Fund starts on page 154 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of St. Louis Park, assets exceeded liabilities by $165,935,603 at the close of the most recent fiscal year. A portion of the City of St. Louis Park’s net position (82 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of St. Louis Park uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of St. Louis Park’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 22 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 31 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Position Increase Increase 2015 2014 (Decrease) 2015 2014 (Decrease) Assets Current and other assets $86,237,071 $82,556,240 $3,680,831 $11,257,020 $15,286,463 ($4,029,443) Capital assets 116,121,196 115,524,209 596,987 31,536,597 30,544,885 991,712 Total assets 202,358,267 198,080,449 4,277,818 42,793,617 45,831,348 (3,037,731) Total deferred outflows of resources 3,743,716 - 3,743,716 - - - Liabilities Other liabilities 14,417,749 12,370,111 2,047,638 4,599,063 4,417,951 181,112 Noncurrent liabilities 50,653,169 29,874,940 20,778,229 10,820,926 13,811,319 (2,990,393) Total liabilities 65,070,918 42,245,051 22,825,867 15,419,989 18,229,270 (2,809,281) Total deferred inflows of resources 2,469,090 - 2,469,090 - - - Net position Net investment in capital assets 114,147,589 94,891,625 19,255,964 22,753,326 22,818,382 (65,056) Restricted 10,608,709 10,971,995 (363,286) - - - Unrestricted 13,805,677 49,971,778 (36,166,101) 4,620,302 4,783,696 (163,394) Total net position $138,561,975 $155,835,398 ($17,273,423) $27,373,628 $27,602,078 ($228,450) Governmental Activities Business-type Activities The City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December 31, 2015. Essentially, the standard required the unfunded portion of defined benefit pension plans to be reported by all participating employers. Recording the net pension liability and the pension related deferred outflows and inflows of resources do not change the City’s future funding requirements or obligations under the plans, which are determined by Minnesota statutes. Net position was negatively impacted by $18,600,212 at December 31, 2015 due to the implementation of this standard. Pension-related amounts included in the above schedule related to the standard are as follows: The balance of unrestricted net position ($18,425,979) may be used to meet the government’s ongoing obligations to citizens and creditors. Deferred outflows of resources $3,743,716 Deferred inflows of resources (2,469,090) Noncurrent liabilities (19,874,838) Total ($18,600,212) 23 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 32 City of St. Louis Park Management’s Discussion and Analysis Governmental activities – Governmental activities increased the City of St. Louis Park’s net position by $614,638. This increase is due to a significant receivable from the Minnesota Department of Transportation. Business-Type activities – Business-type activities decreased the City of St. Louis Park’s net position by ($228,450). This decrease is primarily due to a planned spend down of resources for projects within the City. The following table indicates the changes in net position for the City’s governmental and business-type activities: City of St. Louis Park’s Changes in Net Position Increase Increase 2015 2014 (Decrease) 2015 2014 (Decrease) Revenues Program revenues Charges for services $8,185,586 $7,259,493 $926,093 $17,540,325 $16,455,375 $1,084,950 Operating grants and contributions 3,586,440 2,024,171 1,562,269 128,610 127,742 868 Capital grants and contributions 3,178,294 12,066,132 (8,887,838) - - - General revenues Property taxes and TIF 34,973,518 34,779,152 194,366 - - - Franchise fees 2,915,732 2,268,213 647,519 - - - Grants and contributions not restricted to specific programs 557,671 504,035 53,636 - - - Unrestricted investment earnings 221,408 407,753 (186,345) 59,330 78,003 (18,673) Gain on disposal of capital assets 577,248 464,629 112,619 - - - Miscellaneous 2,985,997 2,609,539 376,458 - - - Total revenues 57,181,894 62,383,117 (5,201,223) 17,728,265 16,661,120 1,067,145 Expenses General government 10,712,749 9,161,922 1,550,827 - - - Public safety 15,336,854 13,954,604 1,382,250 - - - Public information 3,057,509 507,928 2,549,581 - - - Operations and recreation 9,996,885 13,318,552 (3,321,667) - - - Engineering 10,185,956 21,045,392 (10,859,436) - - - Housing and rehabilitation 707,661 909,051 (201,390) - - - Housing maintenance 84,505 130,534 (46,029) - - - Social and economic development 8,872,479 8,058,914 813,565 - - - Interest on long-term debt 1,233,107 1,185,975 47,132 - - - Water utility - - - 4,684,190 4,609,579 74,611 Sewer utility - - - 5,333,887 4,885,748 448,139 Solid waste utility - - - 2,917,214 2,813,587 103,627 Storm water utility - - - 1,400,975 1,422,645 (21,670) Total expenses 60,187,705 68,272,872 (8,085,167)14,336,266 13,731,559 604,707 Increase (decrease) in net position before transfers (3,005,811) (5,889,755) 2,883,944 3,391,999 2,929,561 462,438 Transfers 3,620,449 5,995,095 (2,374,646)(3,620,449)(5,995,095)2,374,646 Change in net position 614,638 105,340 509,298 (228,450)(3,065,534)2,837,084 Net position, January 1, as previously reported 155,835,398 155,730,058 105,340 27,602,078 30,667,612 (3,065,534) Prior period adjustements (17,888,061) - - - - - Net position, January 1 as restated 137,947,337 155,730,058 105,340 27,602,078 30,667,612 (3,065,534) Net position, December 31 $138,561,975 $155,835,398 $614,638 $27,373,628 $27,602,078 ($228,450) Governmental Activities Business-type Activities 24 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 33 City of St. Louis Park Management’s Discussion and Analysis Governmental Activities Revenues - The following chart illustrates the City’s revenue by source for its governmental activities: Revenues by Source - Governmental Activities Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities: Expenses and Program Revenues - Governmental Activities $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 Expenses Program revenues 25 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 34 City of St. Louis Park Management’s Discussion and Analysis Business-type activities - Business-type activities net position decreased in 2015. Below are the graphs showing the business-type activities revenue and expense comparisons. Revenue Sources - Business-type Activities Charges for services 99% Operating grants and contributions Less than 1% Unrestricted investment earnings Less than 1% Expense and Program Revenues - Business-type Activities $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Water Sewer Solid waste Storm water Expenses Program revenues 26 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 35 City of St. Louis Park Management’s Discussion and Analysis Financial Analysis of the Government’s Funds As noted earlier, the City of St. Louis Park uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds – The focus of the City of St. Louis Park’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of St. Louis Park’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of St. Louis Park’s governmental funds reported combined ending fund balances of $62,986,398, an increase of $3,794,363 in comparison with the prior year. Committed, assigned, and unassigned fund balance, which is available for spending at the government’s discretion, has a balance of $43,302,017 at year end. The remainder of fund balance is nonspendable or restricted to indicate that it is not available for new spending because it has already been obligated 1) to pay debt service ($1,881,243), 2) to pay for capital improvements and future expenditures ($3,464,372), 3) for loans outstanding ($4,713,837), 4) for inventory and prepaid ($566,574), 5 ) for land held for resale ($5,006,216) 6) for tax increment purposes ($3,587,670) and 7) for E-911 funds ($464,469) and other restrictions. General Fund – the General fund is the chief operating fund of the City of St. Louis Park. At the end of the current fiscal year, unassigned fund balance of the General fund was $15,242,009 while total fund balance reached $17,031,136. As a measure of the General fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 45 percent of the total subsequent year General fund expenditures, while total fund balance represents 50 percent of that same amount. The City’s General Fund balance increased $868,399 during the current fiscal year. A portion of this increase pertains to higher than anticipated license and permit revenue of $1,064,544. This is primarily related to increased license and permit revenues from more robust construction within the City. Also, intergovernmental revenue was $377,118 over budget which pertains to higher than anticipated highway user tax, and police and fire revenues. Miscellaneous revenue was also over budget by $52,698, which is related to increased revenues for health initiatives in the City. Operating expenditures were approximately $1,319,576 under budget for fiscal year 2015 also. Finally, a transfers out of approximately $2,194,245 was completed in 2015. Housing Rehabilitation – the increase of $1,648,259 in fund balance is due to transfers in of $1,125,400, increased special assessment payments and miscellaneous income. Debt Service Funds – Fund balance in the debt service funds decreased ($1,483) primarily due to the retirement of debt. Permanent Improvement Revolving Fund – The decrease in fund balance of ($274,180) is due to transfers out to other funds for capital project funding. 27 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 36 City of St. Louis Park Management’s Discussion and Analysis Street Capital Projects Fund – Fund balance decreased by ($1,988,174) which is attributed to spending on significant infrastructure projects. Development EDA Fund – Fund balance increased by $2,495,340. This increase is attributable primarily to repayments of interfund loans. Sidewalks and Trails Fund – Fund balance decreased by ($386,192), which is attributable to expenditures on the City’s Connect the Park initiative. Redevelopment District Funds – The Redevelopment District funds are comprised of all tax increment districts in the City. The increase in fund balance of $747,529 is due to delayed payments on interfund loans. Proprietary funds – The City of St. Louis Park’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, unrestricted net position of the Water Utility, Sewer Utility, Storm Water Utility and Solid Waste funds amounted to $6,586,550. Total net position increased by $342,428. This increase was primarily a result of a planned increase in fees to cover infrastructure replacement. Capital Asset and Debt Administration Capital assets The City of St. Louis Park’s investment in capital assets for its governmental and business type activities as of December 31, 2015 was $147,657,793 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of St. Louis Park’s investment in capital assets for the current fiscal year was 1 percent. Major capital asset events during the current fiscal year included the following: Improvements to roadways and street lighting including a major interchange project in progress. Improvements to water system. Improvements to sewer system. Improvements to park infrastructure and aesthetic aspects of the parks. For the year ending December 31, 2015, the City has elected to use the modified approach as defined in GASB Statement No. 34 for infrastructure reporting for its Pavement Management Program, which includes streets. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: 1) The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (a) an up to-date inventory; (b) perform condition assessments and summarize the results using a measurement scale; and (c) estimate annual amount to maintain and preserve at the established condition assessment level. 28 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 37 City of St. Louis Park Management’s Discussion and Analysis 2) The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City’s policy is to achieve an average rating of good (70) for all streets. Over the course of 2014 and 2015, all areas were assessed, providing a new overall condition rating. Going forward, four areas will be assessed every other year. The City increased the number of areas assessed each year in an effort to get more comparative data and more thoroughly analyze the street infrastructure system. As of the last complete assessment, the City’s street system was rated at an Overall Condition Index (OCI) of 65, which is slightly below the City’s policy level. City staff is working with the City Council to develop a plan to increase this number back to the policy level. This plan includes the planned improvements to commercial and industrial roads that were not a part of the plan in the past. The City’s streets are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short-term maintenance activities such as pothole patching, crack sealing, seal coating and overlaying. The City expended $2,050,904 on street maintenance for the year ending December 31, 2015. The physical condition assessment completed in 2012 was the first assessment that reported on the entire system. The City has estimated that the amount of annual expenditures required maintaining the City’s street system at the average OCI rating of good is approximately $2,622,000. The annual expenditures will vary from year to year, depending on the area of the City being targeted that year. The estimate for the year ending December 31, 2015 was $2,300,000, which is higher than the actual expenditures for the year. This was a result of the planning to increase the annual improvements to get condition back to policy level. City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Increase Increase 2015 2014 (Decrease) 2015 2014 (Decrease) Land $15,682,665 $15,882,665 ($200,000) $174,844 $174,844 $ - Permanent easments 1,429,976 1,429,976 - - - - Buildings and structures 34,630,999 35,643,131 (1,012,132) 933,747 1,061,524 (127,777) Improvements other than buildings 9,666,707 10,313,213 (646,506) 4,192,630 4,420,018 (227,388) Machinery and equipment 4,276,489 4,043,164 233,325 2,652,882 2,978,996 (326,114) Fleet 3,989,448 4,118,131 (128,683) - - - Infrastructure - Streets 26,011,544 26,011,544 - - - - Infrastructure - Other 15,653,698 15,921,567 (267,869) 21,234,335 21,907,625 (673,290) Construction in progress 4,779,670 2,160,818 2,618,852 2,348,159 1,878 2,346,281 Total $116,121,196 $115,524,209 $596,987 $31,536,597 $30,544,885 $991,712 Governmental Activities Business-type Activities Additional information on the City of St. Louis Park’s capital assets can be found in Note 5 on pages 70-71 of this report. 29 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 38 City of St. Louis Park Management’s Discussion and Analysis Debt administration At the end of the current fiscal year, the City of St. Louis Park had total bonded debt outstanding of $40,130,000. Of this amount, $22,445,000 comprises debt issued for improvement and capital projects and will be repaid by ad valorem tax levies. In addition, $4,175,000 is general obligation tax increment debt which financed redevelopment projects and will be repaid from the tax increments resulting from increased tax capacity of the redevelopment properties. The remaining $13,510,000 of the City of St. Louis Park’s bonded debt represents general obligation revenue bonds to be repaid by the Water fund, Sewer fund, and Storm Water Utility fund user charges. Furthermore, the City has long-term debt of $2,122,173 for notes payable, $24,975 for a capital lease payable, $3,898,627 for compensated absences, $2,596,202 for other post-employment benefits payable and $19,874,838 for the net pension liability. City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Increase Increase 2015 2014 (Decrease) 2015 2014 (Decrease) G.O. Revenue Bonds $ - $ - $ - $13,510,000 $16,700,000 ($3,190,000) G.O. Tax Increment 4,175,000 4,530,000 (355,000) - - - G.O. Improvement 22,445,000 23,625,000 (1,180,000) - - - Notes payable 2,122,173 - 2,122,173 - - - Capital leases 24,975 33,075 (8,100) - - - Compensated absences 3,752,187 3,702,453 49,734 146,219 149,606 (3,387) Other postemployment benefits 2,596,202 2,144,438 451,764 156,399 129,929 26,470 Net pension liability 19,874,838 - 19,874,838 - - - Total $54,990,375 $34,034,966 $20,955,409 $13,812,618 $16,979,535 ($3,166,917) Governmental Activities Business-type Activities Principal payments during 2015 totaled $4,725,000. The City of St. Louis Park maintains an “AAA” rating from Standard & Poor’s for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 3 percent of its total assessed valuation. The current debt limitation for the City of St. Louis Park is $163,979,667 which is significantly more than the City of St. Louis Park’s outstanding general obligation debt. Additional information on the City of St. Louis Park’s long-term debt can be found in Note 6 on pages 72 - 77 of this report. Economic Factors, Subsequent Year Budgets, Rates and Changes in Structure User charges have been increased to account for various utility improvements scheduled for 2015 and beyond. The overall tax levy for 2015 was increased 5.5% percent. All of these factors were considered in preparing the City of St. Louis Park’s budget for the 2015 fiscal year. 30 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 39 City of St. Louis Park Management’s Discussion and Analysis Requests for Information This financial report is designed to provide our citizens, customers, and creditors with a general overview of the City of St. Louis Park’s finances and to show the City’s accountability for the resources it is entrusted. Questions concerning any of the information provided in the report, or requests for additional financial information, contact the City of St. Louis Park Finance Department at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota, 55416, 952-924-2500, or Tim Simon – Controller at tsimon@stlouispark.org. 31 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 40 - This page intentionally left blank - 32 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 41 BASIC FINANCIAL STATEMENTS 33 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 42 - This page intentionally left blank - 34 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 43 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2015 Governmental Business-Type Activities Activities Total Assets: Cash and investments $59,238,147 $6,944,944 $66,183,091 Cash held in escrow - 1,874,952 1,874,952 Accrued interest receivable 119,557 19,558 139,115 Due from other governments 2,090,897 1,018 2,091,915 Accounts receivable 1,351,850 2,958,271 4,310,121 Taxes receivable 376,991 - 376,991 Prepaid items 263,992 393,864 657,856 Inventory 502,809 14,881 517,690 Deposits receivable 31,000 700 31,700 Internal balances 1,966,248 (1,966,248) - Special assessments receivable 7,886,550 1,015,080 8,901,630 Loans receivable 7,402,814 - 7,402,814 Land held for resale 5,006,216 - 5,006,216 Capital assets (net of accumulated depreciation): Nondepreciable 47,903,855 2,523,003 50,426,858 Depreciable 68,217,341 29,013,594 97,230,935 Total assets 202,358,267 42,793,617 245,151,884 Deferred outflows of resources - pension related 3,743,716 - 3,743,716 Liabilities: Accounts payable 3,512,519 286,516 3,799,035 Salaries payable 1,482,341 90,704 1,573,045 Due to other governments 340,690 86,531 427,221 Contracts payable 1,502,807 530,335 2,033,142 Accrued interest payable 443,193 127,069 570,262 Deposits payable 1,452,847 34,767 1,487,614 Unearned revenue 1,375,066 344,459 1,719,525 Capital lease payable: Due within one year 8,100 - 8,100 Due in more than one year 16,875 - 16,875 Compensated absences payable: Due within one year 2,626,531 103,682 2,730,213 Due in more than one year 1,125,656 42,537 1,168,193 Notes payable: Due within one year 88,655 - 88,655 Due in more than one year 2,033,518 - 2,033,518 Bonds payable (net of premiums and discounts): Due within one year 1,585,000 2,995,000 4,580,000 Due in more than one year 25,006,080 10,621,990 35,628,070 Other postemployment benefits: Due in more than one year 2,596,202 156,399 2,752,601 Net pension liability: Due in more than one year 19,874,838 - 19,874,838 Total liabilities 65,070,918 15,419,989 80,490,907 Deferred inflows of resources - pension related 2,469,090 - 2,469,090 Net position: Net investment in capital assets 114,147,589 22,753,326 136,900,915 Restricted for: Tax increment 3,587,670 - 3,587,670 E-911 purposes 464,469 - 464,469 Park improvement 43,920 - 43,920 Debt service 3,092,198 - 3,092,198 Cable TV equipment 582,792 - 582,792 Police and fire purposes 2,837,660 - 2,837,660 Unrestricted 13,805,677 4,620,302 18,425,979 Total net position $138,561,975 $27,373,628 $165,935,603 Primary Government The accompanying notes are an integral part of these financial statements. 35 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 44 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2015 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $10,712,749 $1,185,881 Public safety 15,336,854 4,237,819 Public information 3,057,509 10,000 Operations and recreation 9,996,885 2,344,863 Engineering 10,185,956 144,151 Housing and rehabilitation 707,661 6,315 Housing maintenance 84,505 - Social and economic development 8,872,479 256,557 Interest on long-term debt 1,233,107 - Total governmental activities 60,187,705 8,185,586 Business-Type activities: Water 4,684,190 5,766,601 Sewer 5,333,887 6,112,024 Solid waste 2,917,214 3,189,566 Storm water 1,400,975 2,472,134 Total business-type activities 14,336,266 17,540,325 Total primary government $74,523,971 $25,725,911 The accompanying notes are an integral part of these financial statements. 36 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 45 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities Total $82,975 $ - ($9,443,893)$ - ($9,443,893) 850,308 183,745 (10,064,982) - (10,064,982) - - (3,047,509) - (3,047,509) 194,381 - (7,457,641) - (7,457,641) 682,967 2,467,123 (6,891,715) - (6,891,715) - 355,140 (346,206) - (346,206) 76,564 - (7,941) - (7,941) 1,529,678 172,286 (6,913,958) - (6,913,958) 169,567 - (1,063,540) - (1,063,540) 3,586,440 3,178,294 (45,237,385)0 (45,237,385) 10,000 - - 1,092,411 1,092,411 - - - 778,137 778,137 118,610 - - 390,962 390,962 - - - 1,071,159 1,071,159 128,610 0 0 3,332,669 3,332,669 $3,715,050 $3,178,294 (45,237,385)3,332,669 (41,904,716) General revenues: Taxes: Property taxes 28,209,567 - 28,209,567 Tax increment 6,763,951 - 6,763,951 Franchise taxes 2,915,732 - 2,915,732 Grants and contributions not restricted to specific programs 557,671 - 557,671 Unrestricted investment earnings 221,408 59,330 280,738 Gain on disposal of capital assets 577,248 - 577,248 Miscellaneous 2,985,997 - 2,985,997 Transfers 3,620,449 (3,620,449) - Total general revenues and transfers 45,852,023 (3,561,119)42,290,904 Change in net position 614,638 (228,450)386,188 Net position - January 1, as previously reported 155,835,398 27,602,078 183,437,476 Prior period adjustment (17,888,061) - (17,888,061) Net position - January 1, as restated 137,947,337 27,602,078 165,549,415 Net position - December 31 $138,561,975 $27,373,628 $165,935,603 Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government The accompanying notes are an integral part of these financial statements. 37 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 46 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 Special Revenue Fund General Fund Housing Rehabilitation Debt Service Funds Assets Cash and investments $20,600,451 $1,734,309 $1,963,490 Accrued interest receivable 37,596 2,293 2,633 Due from other governments 320,711 - 84,886 Accounts receivable 532,083 - - Taxes receivable - unremitted 79,718 - - Taxes receivable - delinquent 261,414 - - Prepaid items 63,765 - - Inventory 502,809 - - Deposits receivable - - - Due from other funds - - - Special assessments receivable - delinquent - 34,356 - Special assessments receivable - deferred - 6,760,088 - Interfund loan receivable - - - Loans receivable - current - 120,000 40,000 Loans receivable - noncurrent - 3,092,873 1,600,000 Land held for resale - - - Total assets $22,398,547 $11,743,919 $3,691,009 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $1,364,665 $3,880 $3,000 Salaries payable 1,439,254 4,308 - Due to other governments 39,041 2,105 - Contracts payable - 13,162 - Due to other funds - - - Interfund loan payable - 2,201,718 - Deposits payable 1,300,229 - 152,618 Unearned revenue 960,918 - 14,148 Total liabilities 5,104,107 2,225,173 169,766 Deferred inflows of resources: Unavailable revenue 263,304 6,774,886 1,640,000 Total deferred inflows of resources 263,304 6,774,886 1,640,000 Fund balance: Nonspendable 566,574 3,092,873 - Restricted 464,469 - 1,881,243 Committed - - - Assigned 758,084 - - Unassigned 15,242,009 (349,013) - Total fund balance 17,031,136 2,743,860 1,881,243 Total liabilities, deferred inflows of resources, and fund balance $22,398,547 $11,743,919 $3,691,009 Fund balance reported above Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds: Receivables not available soon enough to pay for the current period's expenditures Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds: Bonds payable and unamortized bond premium Note payable Accrued interest payable Internal service funds are used by management to charge the cost of certain services to individual funds. The assets and liabilities are included in the governmental statement of net assets Net position of governmental activities The accompanying notes are an integral part of these financial statements. 38 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 47 Statement 3 Permanent Improvement Revolving Streets Capital Projects Development EDA Sidewalks and Trails Redevelopment District Other Governmental Funds 2015 2014 $2,350,600 $3,010,690 $10,236,497 $2,571,561 $4,544,306 $10,346,398 $57,358,302 $51,474,952 5,910 - 20,956 9,488 7,864 26,224 112,964 99,551 - 179,488 1,419,075 - - 86,527 2,090,687 5,511,855 - 29,088 9 - 1,692 763,258 1,326,130 1,010,121 - - - - 26,586 - 106,304 52,492 - - - - 9,273 - 270,687 302,193 - - - - - - 63,765 48,552 - - - - - - 502,809 349,351 - - - - - - - - 64,580 - - - - - 64,580 44,004 7,875 - - - - 3,418 45,649 41,751 908,861 - - - - 171,952 7,840,901 8,361,502 - - 10,006,362 - - - 10,006,362 10,533,799 - - 222,861 - - - 382,861 452,167 - - 1,189,421 - 706,116 431,543 7,019,953 7,199,400 - - 5,006,216 - - - 5,006,216 2,256,216 $3,337,826 $3,219,266 $28,101,397 $2,581,049 $5,295,837 $11,829,320 $92,198,170 $87,737,906 $83,152 $118,243 $1,428,071 $34 $2,724 $152,131 $3,155,900 $1,506,251 - - 544 - - 20,898 1,465,004 1,312,788 - - 256,504 - 21,283 5,619 324,552 108,503 - 1,382,886 - - - 102,954 1,499,002 2,113,782 - - - - - 64,580 64,580 44,004 - - - - 7,804,644 - 10,006,362 10,533,799 - - - - - - 1,452,847 1,503,092 - - - - - 400,000 1,375,066 930,036 83,152 1,501,129 1,685,119 34 7,828,651 746,182 19,343,313 18,052,255 916,732 - - - 72,383 201,154 9,868,459 10,493,616 916,732 0 0 0 72,383 201,154 9,868,459 10,493,616 - - 6,195,637 - - 431,543 10,286,627 7,519,995 - - - - 3,587,670 3,464,372 9,397,754 9,702,584 - - - - - 481,009 481,009 483,590 2,337,942 1,718,137 20,220,641 2,581,015 - 6,514,506 34,130,325 35,728,895 - - - - (6,192,867) (9,446) 8,690,683 5,756,971 2,337,942 1,718,137 26,416,278 2,581,015 (2,605,197) 10,881,984 62,986,398 59,192,035 $3,337,826 $3,219,266 $28,101,397 $2,581,049 $5,295,837 $11,829,320 $92,198,170 $87,737,906 $62,986,398 98,259,738 9,868,459 (26,591,080) (2,122,173) (443,193) (3,396,174) $138,561,975 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. 39 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 48 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 Special Revenue Fund General Fund Housing Rehabilitation Debt Service Funds Revenues: Property taxes $22,653,094 $100,000 $1,423,161 Tax increments - - - Franchise taxes - - - License and permits 4,312,702 - - Intergovernmental 1,669,395 - 169,567 Charges for services 3,337,061 6,315 - Fines and forfeits 263,951 - - Special assessments - 796,688 - Interest on investments 68,907 2,094 2,422 Miscellaneous 194,998 579,349 121,228 Total revenues 32,500,108 1,484,446 1,716,378 Expenditures: Current: General government 7,813,046 - - Public safety 13,911,005 - - Operations and recreation 9,155,296 - - Engineering 381,151 - - Public information - - - Housing and rehabilitation - 538,411 - Housing maintenance - - - Social economic development - - 487,802 Capital outlay: General government 44,364 - - Public safety - - - Operations and recreation - - - Engineering - - - Public information - - - Social and economic development - - - Debt service: Principal - - 1,535,000 Interest and other - 77,378 1,059,491 Fiscal agent fees - - 2,640 Bond issuance costs - - - Total expenditures 31,304,862 615,789 3,084,933 Revenues over (under) expenditures 1,195,246 868,657 (1,368,555) Other financing sources (uses): Transfers in 1,867,398 1,125,400 1,367,072 Transfers out (2,194,245)(345,798) - Debt issued - - - Premium on bonds - - - Proceeds from sale of capital assets - - - Total other financing sources (uses)(326,847)779,602 1,367,072 Net change in fund balance 868,399 1,648,259 (1,483) Fund balance - January 1,16,162,737 1,095,601 1,882,726 Fund balance - December 31 $17,031,136 $2,743,860 $1,881,243 The accompanying notes are an integral part of these financial statements. 40 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 49 Statement 4 Permanent Improvement Revolving Streets Capital Projects Development EDA Sidewalks and Trails Redevelopment District Other Governmental Funds 2015 2014 $ - $ - $25,751 $645,007 $941,360 $810,000 $26,598,373 $24,361,524 - - - - 6,763,951 - 6,763,951 7,380,995 - - - - - 2,915,732 2,915,732 2,268,213 - - - - - - 4,312,702 3,413,683 - 2,467,124 1,529,677 - - 181,262 6,017,025 13,216,055 - - 231,109 - - 34,448 3,608,933 3,476,264 - - - - - - 263,951 369,546 243,736 - 330 - - 198,119 1,238,873 1,268,539 11,251 12,781 33,078 10,246 11,385 47,583 199,747 386,263 2,445 - 1,392,079 - - 761,847 3,051,946 2,577,300 257,432 2,479,905 3,212,024 655,253 7,716,696 4,948,991 54,971,233 58,718,382 - - - - - - 7,813,046 7,376,380 100,973 - - - - 13,485 14,025,463 13,239,729 - - - - - 555,308 9,710,604 10,500,789 - 9,649,585 - 207 - 37,504 10,068,447 20,963,383 - - - - - 561,252 561,252 462,341 - - - - - - 538,411 875,225 - - - - - 84,505 84,505 130,534 - - 3,000,203 - 5,114,307 270,167 8,872,479 7,928,905 - - - - - - 44,364 - - - - - - 343,078 343,078 16,901 - - - - - 988,759 988,759 337,505 - 2,053,521 - 3,180 - - 2,056,701 1,845,182 - - - - - 12,162 12,162 - - - 41,800 - - - 41,800 72,400 - - 77,827 - - - 1,612,827 1,970,000 - - 74,102 - - - 1,210,971 1,138,100 - - - - - - 2,640 2,040 - - - - - - - 52,393 100,973 11,703,106 3,193,932 3,387 5,114,307 2,866,220 57,987,509 66,911,807 156,459 (9,223,201)18,092 651,866 2,602,389 2,082,771 (3,016,276) (8,193,425) - 7,235,027 - 910,442 - 790,902 13,296,241 19,317,129 (430,639) - (500,000) (1,948,500) (1,854,860) (2,188,808) (9,462,850) (15,241,005) - - 2,200,000 - - - 2,200,000 5,070,000 - - - - - - - 98,040 - - 777,248 - - - 777,248 321,866 (430,639) 7,235,027 2,477,248 (1,038,058) (1,854,860) (1,397,906) 6,810,639 9,566,030 (274,180) (1,988,174) 2,495,340 (386,192)747,529 684,865 3,794,363 1,372,605 2,612,122 3,706,311 23,920,938 2,967,207 (3,352,726) 10,197,119 59,192,035 57,819,430 $2,337,942 $1,718,137 $26,416,278 $2,581,015 ($2,605,197) $10,881,984 $62,986,398 $59,192,035 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. 41 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 50 - This page intentionally left blank - 42 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 51 CITY OF ST. LOUIS PARK, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2015 2015 Amounts reported for governmental activities in the statement of activities (Statement 2) are different because: Net changes in fund balances - total governmental funds (Statement 4)$3,794,363 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Depreciation expense (3,202,271) Capital outlays 3,478,801 The net effect of various transactions involving capital assets (i.e., sales, trade-ins and donations) is to increase (decrease) net position (272,400) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Proceeds from long term debt (2,200,000) Principal repayments on long term debt 1,612,827 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.(23,207) Governmental funds report debt issuance premiums and discounts as an other financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the City-wide financial statements.3,711 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments (527,702) Property taxes (31,506) Loans (65,949) Internal service funds are used by management to charge the costs for equipment, information system, equipment replacement, employee benefits and major losses incurred by individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.(1,952,029) Change in net position of governmental activities (Statement 2)$614,638 The accompanying notes are an integral part of these financial statements. 43 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 52 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2015 With Comparative Amounts For Enterprise Funds For December 31, 2014 2015 2014 2015 2014 Assets: Current assets: Cash and investments $880,701 $2,598,501 $1,253,942 $1,415,372 Cash and investments held in escrow 1,865,855 3,359,208 - - Accrued interest receivable 3,553 919 4,085 4,378 Due from other governments - - 1,018 17,456 Accounts receivable 973,337 943,032 947,206 914,104 Prepaid items 13,667 - 361,764 307,654 Deposits receivable 700 700 - - Inventories 14,881 21,016 - - Special assessments receivable - delinquent 98,930 100,089 946 - Special assessments receivable - deferred 736,011 763,904 179,193 139,673 Total current assets 4,587,635 7,787,369 2,748,154 2,798,637 Noncurrent assets: Capital assets, at cost: Land 114,844 114,844 60,000 60,000 Buildings and structures 4,761,612 4,761,612 6,111 6,111 Improvements other than buildings 951,045 889,152 22,278 22,278 Infrastructure 14,663,244 14,663,244 19,678,304 19,678,304 Machinery, furniture and equipment 4,953,257 4,953,257 262,039 262,039 Fleet - - - - Construction in progress 2,348,159 1,878 - - Total capital assets, at cost 27,792,161 25,383,987 20,028,732 20,028,732 Less: accumulated depreciation (13,788,810)(13,070,612)(15,965,331)(15,835,630) Net capital assets 14,003,351 12,313,375 4,063,401 4,193,102 Total noncurrent assets 14,003,351 12,313,375 4,063,401 4,193,102 Total assets 18,590,986 20,100,744 6,811,555 6,991,739 Deferred outflows of resources - pension related - - - - Liabilities: Current liabilities: Accounts payable 82,180 131,667 19,482 11,249 Salaries payable 57,664 46,855 16,648 14,141 Accrued flex spending - - - - Due to other governments 31,383 8,235 3,002 3,002 Contracts payable 530,335 33,160 - - Deposits payable 34,767 47,122 - - Accrued interest payable 113,282 105,199 2,333 2,466 Compensated absences payable 96,289 101,661 73 456 Capital lease payable - - - - Bonds payable 2,619,500 2,083,800 16,500 16,000 Unearned revenue 344,459 274,824 - - Total current liabilities 3,909,859 2,832,523 58,038 47,314 Noncurrent liabilities: Compensated absences payable 13,086 15,379 29,451 29,508 Other postemployment benefits payable 111,876 94,229 23,613 20,084 Capital lease payable - - - - Bonds payable 9,409,648 12,045,557 172,732 189,258 Net pension liability - - - - Total noncurrent liabilities 9,534,610 12,155,165 225,796 238,850 Total liabilities 13,444,469 14,987,688 283,834 286,164 Deferred inflows of resources - pension related - - - - Net position: Net investment in capital assets 6,807,922 6,575,118 3,874,169 3,987,844 Unrestricted (1,661,405)(1,462,062)2,653,552 2,717,731 Total net position $5,146,517 $5,113,056 $6,527,721 $6,705,575 Business-Type Activities Enterprise Funds 5000 Water Utility 5100 Sewer Utility The accompanying notes are an integral part of these financial statements. 44 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 53 Statement 6 Business-Type Activities Enterprise Funds Governmental Activities 2015 2014 2015 2014 Internal 2015 2014 Service Funds $2,161,295 $2,105,838 $2,649,006 $2,249,549 $6,944,944 $8,369,260 $1,879,845 - - 9,097 688,031 1,874,952 4,047,239 - 4,948 4,066 6,972 5,331 19,558 14,694 6,593 - - - - 1,018 17,456 210 671,489 690,500 366,239 333,315 2,958,271 2,880,951 25,720 - - 18,433 19,184 393,864 326,838 200,227 - - - - 700 700 31,000 - - - - 14,881 21,016 - - 13 - - 99,876 100,102 - - - - - 915,204 903,577 - 2,837,732 2,800,417 3,049,747 3,295,410 13,223,268 16,681,833 2,143,595 - - - - 174,844 174,844 818,094 - - - - 4,767,723 4,767,723 8,521,883 - - 6,182,215 6,182,215 7,155,538 7,093,645 888,623 - - 15,588,972 15,588,972 49,930,520 49,930,520 1,313,801 - - 89,099 89,099 5,304,395 5,304,395 7,008,412 - - - - - - 7,912,923 - - - - 2,348,159 1,878 895,637 0 0 21,860,286 21,860,286 69,681,179 67,273,005 27,359,373 - - (8,390,441) (7,821,878) (38,144,582) (36,728,120) (9,497,915) 0 0 13,469,845 14,038,408 31,536,597 30,544,885 17,861,458 0 0 13,469,845 14,038,408 31,536,597 30,544,885 17,861,458 2,837,732 2,800,417 16,519,592 17,333,818 44,759,865 47,226,718 20,005,053 - - - - - - 3,743,716 181,343 348,950 3,511 3,318 286,516 495,184 356,619 7,633 - 8,759 8,335 90,704 69,331 - - - - - - - 17,337 49,144 49,836 3,002 7,418 86,531 68,491 16,138 - - - 374 530,335 33,534 3,805 - - - - 34,767 47,122 - - - 11,454 27,081 127,069 134,746 - - - 7,320 2,602 103,682 104,719 2,626,531 - - - - - - 8,100 - - 359,000 1,090,200 2,995,000 3,190,000 - - - - - 344,459 274,824 - 238,120 398,786 393,046 1,139,328 4,599,063 4,417,951 3,028,530 - - - - 42,537 44,887 1,125,656 1,765 - 19,145 15,616 156,399 129,929 2,596,202 - - - - - - 16,875 - - 1,039,610 1,401,688 10,621,990 13,636,503 - - - - - - - 19,874,838 1,765 0 1,058,755 1,417,304 10,820,926 13,811,319 23,613,571 239,885 398,786 1,451,801 2,556,632 15,419,989 18,229,270 26,642,101 - - - - - - 2,469,090 - - 12,071,235 12,255,420 22,753,326 22,818,382 17,861,458 2,597,847 2,401,631 2,996,556 2,521,766 6,586,550 6,179,066 (23,223,880) $2,597,847 $2,401,631 $15,067,791 $14,777,186 29,339,876 $28,997,448 ($5,362,422) Adjustment to reflect consolidation of Internal Service fund activities (1,966,248) Net position of business-type activities $27,373,628 Totals 5200 Solid Waste 5300 Storm Water Utility The accompanying notes are an integral part of these financial statements. 45 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 54 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2015 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2014 2015 2014 2015 2014 Operating revenues: Charges for services $5,176,076 $4,672,950 $5,991,061 $5,793,686 Other 216,342 231,634 120,937 47,665 Rent 357,774 280,365 - - Total operating revenues 5,750,192 5,184,949 6,111,998 5,841,351 Operating expenses: Personal services 1,272,340 1,224,279 562,701 475,449 Supplies 287,882 239,850 18,363 34,599 Professional services 288,509 299,940 18,648 29,945 Insurance 20,220 23,917 64,526 67,694 Utilities 398,652 440,769 43,459 40,361 Repairs and maintenance 662,739 534,989 179,138 151,891 Depreciation 718,198 728,504 129,701 127,112 Disposal charges 63,217 63,143 3,692,347 3,600,010 Other 501,651 632,077 226,671 144,224 Total operating expenses 4,213,408 4,187,468 4,935,554 4,671,285 Operating income (loss)1,536,784 997,481 1,176,444 1,170,066 Nonoperating revenues (expenses): Investment income 27,392 19,302 5,283 18,398 Property taxes - - - - Intergovernmental revenue 10,000 25,758 - - Miscellaneous expense (15,367) (14,393)(9,494) (9,294) Amortization of bond premiums 16,409 3,116 26 26 Net loss on disposal of assets - - - - Interest expense (321,505) (265,565)(5,626) (5,946) Issuance of debt - (51,320) - - Total nonoperating revenues (expenses)(283,071) (283,102)(9,811) 3,184 Income (loss) before transfers 1,253,713 714,379 1,166,633 1,173,250 Capital contributions and transfers: Capital contributions 72,400 - - - Transfers in - - - - Transfers out (1,292,652) (2,856,820) (1,344,487) (1,904,495) Total capital contributins and transfers (1,220,252) (2,856,820) (1,344,487) (1,904,495) Change in net position 33,461 (2,142,441) (177,854) (731,245) Net position - January 1, as previously reported 5,113,056 7,255,497 6,705,575 7,436,820 Prior period adjustment - - - - Net position - January 1, as restated 5,113,056 7,255,497 6,705,575 7,436,820 Net position - December 31 $5,146,517 $5,113,056 $6,527,721 $6,705,575 Business-Type Activities Enterprise Funds 5000 Water Utility 5100 Sewer Utility The accompanying notes are an integral part of these financial statements. 46 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 55 Statement 7 Governmental Business-Type Activities Enterprise Funds Activities Internal 2015 2014 2015 2014 2015 2014 Service Funds $3,159,426 $3,134,013 $2,469,056 $2,245,983 $16,795,619 $15,846,632 $1,041,966 30,140 45,719 - - 367,419 325,018 451,430 - - - - 357,774 280,365 - 3,189,566 3,179,732 2,469,056 2,245,983 17,520,812 16,452,015 1,493,396 386,831 307,168 511,933 466,748 2,733,805 2,473,644 1,670,444 71,424 120,136 3,374 2,309 381,043 396,894 412,593 15,987 17,920 52,008 38,302 375,152 386,107 1,382,065 3,770 4,532 17,848 9,601 106,364 105,744 256,810 - - 23,438 22,901 465,549 504,031 - - - 5,311 91,609 847,188 778,489 - - - 568,563 571,489 1,416,462 1,427,105 1,757,465 2,367,972 2,290,598 - - 6,123,536 5,953,751 - 62,391 73,233 126,956 123,935 917,669 973,469 609,654 2,908,375 2,813,587 1,309,431 1,326,894 13,366,768 12,999,234 6,089,031 281,191 366,145 1,159,625 919,089 4,154,044 3,452,781 (4,595,635) 10,601 15,542 16,054 24,761 59,330 78,003 21,661 - - - - - - 1,642,700 118,610 101,984 - - 128,610 127,742 594,209 - - (77) (2,388) (24,938) (26,075) - - - 3,078 774 19,513 3,916 - - - - - - - (45,300) - - (46,551) (67,518) (373,682) (339,029) - - - - (77) - (51,397) - 129,211 117,526 (27,496) (44,448) (191,167) (206,840) 2,213,270 410,402 483,671 1,132,129 874,641 3,962,877 3,245,941 (2,382,365) - - - - 72,400 - - - - - - - - 769,900 (214,186) (207,947) (841,524) (1,025,833) (3,692,849) (5,995,095) (910,442) (214,186) (207,947) (841,524) (1,025,833) (3,620,449) (5,995,095) (140,542) 196,216 275,724 290,605 (151,192) 342,428 (2,749,154) (2,522,907) 2,401,631 2,125,907 14,777,186 14,928,378 28,997,448 31,746,602 15,048,546 - - - - - - (17,888,061) 2,401,631 2,125,907 14,777,186 14,928,378 28,997,448 31,746,602 (2,839,515) $2,597,847 $2,401,631 $15,067,791 $14,777,186 $29,339,876 $28,997,448 ($5,362,422) Adjustment to reflect consolidation of Internal Service fund activities (570,878) Change in net position of business-type activities ($228,450) Totals5200 Solid Waste 5300 Storm Water Utility The accompanying notes are an integral part of these financial statements. 47 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 56 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2015 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2014 2015 2014 2015 2014 Cash flows from operating activities: Receipts from customers and users $5,589,877 $4,896,484 $5,933,931 $5,802,512 Receipts from interfund services provided - - - - Other receipts 216,342 231,634 120,937 47,665 Payments to suppliers (1,759,566) (2,247,056) (4,289,029) (4,135,838) Payments to employees (1,251,549) (1,207,278) (557,105) (467,245) Miscellaneous expense (15,367) (14,393) (9,494) (9,294) Net cash flows provided by (used in) operating activities 2,779,737 1,659,391 1,199,240 1,237,800 Cash flows from noncapital financing activities: Transfers in - - - - Transfers out (1,292,652) (2,856,820) (1,344,487) (1,904,495) Borrowing on interfund balances - - - 343,494 Payments on interfund balances - (343,494) - - Property taxes - - - - Intergovernmental receipts 10,000 25,758 - - Net cash flows provided by (used in) noncapital financing activities (1,282,652) (3,174,556) (1,344,487) (1,561,001) Cash flows from capital and related financing activities: Transfers in - - - - Acquisition and construction of capital assets (2,335,774) - - (24,660) Proceeds from sale of assets - - - - Payments on capital leases - - - - Debt proceeds, net - 5,025,398 - - Transfer of bond proceeds (to)/from escrow account 1,493,353 29,584 - - Principal paid on bonds (2,083,800) (633,800) (16,000) (16,000) Interest paid on debt (313,422) (327,910) (5,759) (6,080) Net cash flows provided by (used in) capital and related financing activities (3,239,643) 4,093,272 (21,759) (46,740) Cash flows from investing activities: Investment income 24,758 18,383 5,576 20,614 Net increase (decrease) in cash and cash equivalents (1,717,800) 2,596,490 (161,430) (349,327) Cash and cash equivalents - January 1 2,598,501 2,011 1,415,372 1,764,699 Cash and cash equivalents - December 31 $880,701 $2,598,501 $1,253,942 $1,415,372 Business-Type Activities Enterprise Funds 5000 Water Utility 5100 Sewer Utility The accompanying notes are an integral part of these financial statements. 48 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 57 Statement 8 Page 1 of 2 Governmental Activities Internal 2015 2014 2015 2014 2015 2014 Service Funds $3,178,450 $3,088,852 $2,436,132 $2,212,086 $17,138,390 $15,999,934 $ - - - - - - - 1,016,615 30,140 45,719 - - 367,419 325,018 451,430 (2,689,843) (2,592,559) (232,781) (330,706) (8,971,219) (9,306,159) (2,623,092) (377,433) (307,168) (503,262) (466,430) (2,689,349) (2,448,121) (560,917) - - (77) (2,388) (24,938) (26,075) - 141,314 234,844 1,700,012 1,412,562 5,820,303 4,544,597 (1,715,964) - - - - - - 650,000 (214,186) (207,947) (841,524) (1,025,833) (3,692,849) (5,995,095) (910,442) - - - - - 343,494 - - - - - - (343,494) - - - - - - - 1,995,085 118,610 101,984 - - 128,610 127,742 594,209 (95,576) (105,963) (841,524) (1,025,833) (3,564,239) (5,867,353) 2,328,852 - - - - - - 119,900 - - - - (2,335,774) (24,660) (2,497,745) - - - - - - 184,425 - - - - - - (8,100) - - - - - 5,025,398 - - - 678,934 6,059 2,172,287 35,643 - - - (1,090,200) (365,200) (3,190,000) (1,015,000) - - - (62,178) (71,664) (381,359) (405,654) - 0 0 (473,444) (430,805) (3,734,846) 3,615,727 (2,201,520) 9,719 17,301 14,413 26,519 54,466 82,817 19,831 55,457 146,182 399,457 (17,557) (1,424,316) 2,375,788 (1,568,801) 2,105,838 1,959,656 2,249,549 2,267,106 8,369,260 5,993,472 3,448,646 $2,161,295 $2,105,838 $2,649,006 $2,249,549 $6,944,944 $8,369,260 $1,879,845 Business-Type Activities Enterprise Funds 5300 Storm Water Utility Totals5200 Solid Waste The accompanying notes are an integral part of these financial statements. 49 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 58 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 2015 2014 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)$1,536,784 $997,481 $1,176,444 $1,170,066 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous expense (15,367) (14,393) (9,494) (9,294) Depreciation 718,198 728,504 129,701 127,112 Changes in assets and liabilities: Decrease (increase) in: Accounts receivable (30,305) (6,738) (16,664) 13,900 Special assessments 29,052 (109,942) (40,466) (5,074) Prepaid items (13,667) - (54,110) (7,700) Inventory 6,135 14,418 - - Deferred outflows of resources - - - - Increase (decrease) in: Accounts payable (26,339) 4,904 8,233 (12,225) Contracts payable 497,175 (31,693) - (47,189) Deposits payable (12,355) 41,222 - - Accrued salaries payable 10,809 (3,473)2,507 5,680 Unearned revenue 69,635 18,627 - - Accrued flex spending - - - - Compensated absences payable (7,665) 6,951 (440)65 Other postemployment benefits 17,647 13,523 3,529 2,459 Net pension liability - - - - Deferred inflows of resources - - - - Total adjustments 1,242,953 661,910 22,796 67,734 Net cash provided by (used) operating activities $2,779,737 $1,659,391 $1,199,240 $1,237,800 Supplemental schedule of noncash capital and related financing activities Amortization of bond premiums $16,409 $3,116 $26 $26 Disposal of capital assets $ - $ - $ - $ - Asset accquired through financing $ - $ - $ - $ - Assets contributed from government $ - $ - $ - $ - 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 50 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 59 Statement 8 Page 2 of 2 Governmental Activities Internal 2015 2014 2015 2014 2015 2014 Service Funds $281,191 $366,145 $1,159,625 $919,089 $4,154,044 $3,452,781 ($4,595,635) - - (77) (2,388) (24,938) (26,075) - - - 568,563 571,489 1,416,462 1,427,105 1,757,465 19,011 (45,148) (32,924) (33,897) (60,882) (71,883) (25,351) 13 (13) - - (11,401) (115,029) - - - 751 (19,184) (67,026) (26,884) (36,833) - - - - 6,135 14,418 - - - - - - - (2,770,347) (168,299) (86,140) (4,223) (7,176) (190,628) (100,637) 74,863 - - (374) (15,689) 496,801 (94,571) - - - - - (12,355) 41,222 - 7,633 - 424 1,818 21,373 4,025 (5,080) - - - - 69,635 18,627 - - - - - - - (16,740) - - 4,718 (3,959) (3,387) 3,057 49,734 1,765 - 3,529 2,459 26,470 18,441 451,764 - - - - - - 931,106 - - - - - - 2,469,090 (139,877) (131,301) 540,387 493,473 1,666,259 1,091,816 2,879,671 $141,314 $234,844 $1,700,012 $1,412,562 $5,820,303 $4,544,597 ($1,715,964) $ - $ - $3,078 $774 $19,513 $3,916 $ - $ - $ - $ - $ - $ - $ - $888,968 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $72,400 5200 Solid Waste 5300 Storm Water Utility Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 51 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 60 - This page intentionally left blank - 52 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 61 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Louis Park, Minnesota (the City) was incorporated in 1886 and operates a council-manager form of government under the “Home Rule Charter” concept according to applicable Minnesota laws and statutes. The governing body consists of a seven member City Council elected by the voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City (the primary government) and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are combined with data of the City. BLENDED COMPONENT UNITS The Economic Development Authority (EDA) is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City’s operations because the members of the City Council serve as EDA Board Members and its sole purpose is to promote development within the City’s tax increment districts. Also, the City has the ability to access EDA resources. Separate financial statements are not prepared for the EDA. The following funds are maintained by the EDA: Debt Service Funds – 2004 General Obligation Tax Increment Refunding, 2008B General Obligation Tax Increment Bonds, and Hoigaard’s 2010A & B TIF Notes; Capital Project Funds – Development EDA and Redevelopment District. RELATED ORGANIZATION The Housing Authority (HA) is an entity legally separate from the City. The HA is governed by a Board of Commissioners appointed by the City Council. However, the City’s accountability for the HA does not extend beyond making the appointments. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 53 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 62 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenue, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 54 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 63 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 The Housing Rehabilitation Fund is used to account for revenues from revenue bond fees and expenditures related to preventing deterioration of multi-unit housing. Debt Service Funds account for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the government. The Permanent Improvement Revolving Fund accounts for the resources and expenditures required for the acquisition and construction of capital improvements which will provide a direct or significant indirect benefit to individual property owners. Financing of these projects is provided by shared costs with other organizations, land sales, state allotment from highway user tax collections and assessment proceeds. The Streets Capital Projects Fund accounts for street construction projects. Revenues are provided by the General Fund or by the issuance of General Obligation bonds. The Development EDA Fund accounts for transactions related to redevelopment efforts in the City; financing is provided by investment income, grants, and developer reimbursements. The Sidewalks and Trails Fund accounts for the City’s 10 year plan to add additional sidewalks, trails, bike lane and bikeway throughout the community. Financing for this plan will occur by issuing General Obligation bonds over several stages throughout the life of the plan. The Redevelopment District Fund accounts for transactions relative to acquisition and development in the City’s tax increment redevelopment districts; financing is provided by the sale of general obligation tax increment bonds along with tax increment property tax payments. The City reports the following major enterprise funds: The Water Utility Fund accounts for the provisions of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. The Sewer Utility Fund accounts for the provisions of sewer services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. The Solid Waste Fund accounts for the revenue and expense related to collection, disposal, and recycling of residential solid waste. Financing is provided by charging each property owner a predetermined service fee. The Storm Water Utility Fund accounts for the revenue and expenses related to providing storm water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, construction, maintenance, billing and collection. 55 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 64 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Additionally, the government reports the following fund types: Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost reimbursement basis. The City’s internal service funds account for employee flex spending, uninsured loss, and capital replacement. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water, wastewater, storm sewer and municipal liquor enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETARY INFORMATION Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General Fund. A budget is not presented for the Housing Rehabilitation Fund since the City does not legally require to adopt a budget for the fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is as present not considered necessary to assure effective budgetary control or to facilitate effective cash management. 56 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 65 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. The City Council reviews the proposed budget and makes appropriate changes. 3. Public hearings are conducted to obtain taxpayer comments. 4. The budget is legally enacted through passage of a resolution on a departmental/divisional basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts in accordance with the provisions of Section 6.05 of the City Charter. 5. After the budget resolution is approved, the City Council can increase the budget only by resolution if actual receipts exceed the estimated, or from accumulated fund balance in the amount of unexpended appropriations from the previous fiscal year. During the year 2015, the budget was not amended. 6. Formal budgetary integration is employed as a management control device during the year for the General Fund. 7. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 8. A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 9. The legal level of budgetary control is at the fund level. Expenditures may not legally exceed budgeted appropriations at the total fund level. The City Council must approve all expenditures at fund level either by resolution or through the disbursement process. 10. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services, supplies, and other services and charges, and capital outlay) within each program. Management can exceed appropriations at the department level without City Council approval. Approval must be received for exceeding budgeted appropriations at the fund level. 11. The City Council may authorize transfer of budgeted amounts between City funds. 57 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 66 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of average monthly cash balances. The City’s investment policy dictates that the General fund is to receive the first three percent of all interest earnings as an administrative fee. The administrative fee does not apply to the Economic Development Authority. Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like external investment pools, which are stated at amortized cost. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore the entire balance in such fund types is considered cash equivalents. It is the City’s policy to invest in a manner that seeks to ensure preservation of capital in the overall portfolio. Safety of principal is the foremost objective, but liquidity and yield are also important considerations. The objective will be to mitigate credit risk by purchasing only highly rated securities with adequate collateral and interest rate risk by matching maturities to cash flow needs and holding securities to maturity. G. ACCOUNTS RECEIVABLE Property taxes and special assessment receivables have been reported net of estimated uncollectible accounts (See Note 1 I and J). The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. INTERFUND RECEIVABLES AND PAYABLES Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “interfund loan receivable/payable” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Interfund loan receivables, as reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 58 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 67 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 I. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflow of resources because they are not available to finance current expenditures. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City’s property tax revenue includes payment from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation “shared” is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for 2015 and 2014 totaled $2,194,820 and $1,997,553, respectively. Receipt of property taxes from this “fiscal disparities pool” does not increase or decrease total tax revenue. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. 59 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 68 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred inflow of resources. K. INVENTORIES Inventory is valued at cost using the first-in, first out (FIFO) method. Inventory consists mainly of expendable supplies held for consumption. Inventories of the governmental funds are recorded as expenditures when consumed rather than when purchased. L. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. 60 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 69 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 M. CAPITAL ASSETS Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government- wide financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of three years and an initial individual cost of more than the following: Land $1 Land improvements 5,000 Buildings and building improvements 5,000 Machinery and equipment 10,000 Office equipment 25,000 Vehicle or fleet 10,000 Infrastructure 250,000 Capitalization Threshold Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The City uses the modified approach for reporting street and trail system capital assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2015, no interest was capitalized in connection with construction in progress. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight line method over the following estimated useful lives: Buildings and structures 5 – 30 years Improvements other than buildings 5 – 30 years Infrastructure 5 – 100 years Machinery, furniture and equipment (including software) 3 – 30 years Fleet 3 – 25 years Temporary easements 3 – 5 years Capital assets of the water utility and sewer utility operations include the water distribution system and sewer collection system. These systems have been wholly (or substantially) financed by non- operating funds (special assessments, general taxes, federal and state grants, and other sources) and contribution to the Water and Sewer operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. 61 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 70 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 The City implemented GASB 51, Accounting and Financial Reporting for Intangible Assets effective January 1, 2010, which required the City to capitalize and amortize intangible assets. Pursuant to GASB Statement No. 51, the retroactive reporting of permanent easements is not required and therefore, the City has elected not to report permanent easements acquired in years prior to 2010. The City had already accounted for computer software at historical cost and therefore retroactive reporting was not necessary. The City elects to use the modified approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets. The City conducted a physical assessment in the Fall of 2014 of the condition of the streets. This condition assessment will be performed every 2 years. Each segment of City owned street was assigned a physical condition based on potential defects. A Overall Condition Index (OCI) was assigned to each segment. The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to those segments that have the characteristic of a new street. The following conditions were defined: Range Description 86 - 100 Excellent 71 - 85 Very good 56 - 70 Good 41 - 55 Fair 26 - 40 Poor 11 - 25 Very poor 0 - 10 Failed The City’s policy relative to maintaining the street and trail assets is to achieve an average rating of “Good” for all segments. This acceptable rating allows minor cracking and patching of the pavement along with minor roughness that could be noticeable to the users of the system. N. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation, sick pay and flex leave benefits. No liability is recorded for unpaid accumulated sick leave, except for that portion that is payable as severance. All liabilities for vacation leave, flex leave and severance, both current and long-term, are recorded in the Employee Benefits Fund, an Internal Service Fund for governmental funds, and in the individual enterprise funds when incurred. The personnel ordinance limits the annual accumulation of benefits that can be accumulated from year-to-year. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 62 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 71 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 O. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. P. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by Resolution of the City Council. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council Resolution, the City’s Controller and/or City Manager is authorized to establish assignments of fund balance. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. 63 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 72 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Q. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. R. COMPARATIVE TOTALS AND RECLASSIFICATIONS The basic financial statements and schedules, required supplementary information, and combining and individual fund financial statements include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government’s financial statements for the year ended December 31, 2014, from which the summarized information was derived. In addition, certain amounts in the prior year have been reclassified to conform to the current year presentation. S. NET POSITION Net position represents the difference between assets and liabilities. Net position is displayed in three components. a) Net investment in capital assets – consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b) Restricted net position – consist of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c) Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets”. T. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. 64 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 73 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 U. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has one item that qualifies for reporting in this category. It is the pension related deferred outflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has pension related deferred inflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. The government also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, bond reimbursement payments not yet due and other miscellaneaous unavailable revenue. Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: 1. United States government treasury bills, treasury notes, treasury bonds; 2. Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; 3. General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; 4. General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; 65 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 74 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 5. Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and 6. Time deposits that are fully insured by any federal agency. Custodial Credit Risk - deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit risk. As of December 31, 2015, the bank balance of the City’s deposits was $3,327,322, all of which was covered by federal depository insurance or by collateral pledged and held in the City’s name. B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: 1. Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. 3. State and local securities as follows: a) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; b) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and c) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. 4. Bankers acceptance of United States banks. 5. Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 6. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. 7. General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. 66 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 75 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 At December 31, 2015, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 11-15 4M fund NR $5,432,156 $5,432,156 $ - $ - $ - Money market mutual funds NR 28,937,052 28,937,052 - - - Certificates of deposit NR 6,635,820 720,062 5,915,758 - - Municipal bonds A - AAA 12,908,876 1,326,501 11,582,375 - - Federal National Mortgage Assn. AAA 3,989,960 - 3,989,960 - - Federal Home Loan Bank notes AAA 3,865,831 - 3,865,831 - - Federal Home Loan Mortgage Corp. notes AAA 1,986,410 - 1,986,410 - - Total $63,756,105 $36,415,771 $27,340,334 $0 $0 Total investments $63,756,105 Deposits 2,422,401 Bond escrow 1,874,952 Petty cash 4,585 Total cash and investments $68,058,043 Investment Maturities (in Years) C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security broker/dealers to provide its audited financial statements, proof of NASD certification, proof of state registration, and certification of having read, understood and agreed to comply with the City’s investment policy. Investments in securities are held by the City’s broker-dealer of which $500,000 is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy states the investment portfolio will remain sufficiently liquid to enable the City to meet all operating and capital requirements that might be reasonably anticipated. The maximum maturity of investments shall not extend beyond five years, unless related to specific cash flow needs. Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money 67 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 76 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated 2a7-like pool and the fair value of the position in the pool is the same as the value of pool shares. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states no more than 50% of its investment portfolio can be invested in municipal bonds or MHFA securities. Investments in a single issuer exceeding 5% of the City’s overall cash and investment portfolio are in various holdings as follows: Federal National Mortgage Assn.5.86% Federal Home Loan Bank 5.68% Note 3 RECEIVABLES A. LOANS RECEIVABLE The City has made loans to local businesses and individuals that qualify for various loan programs. The businesses and individuals pay varying installments on the loans. Depending on the loan program, some of the loans are secured by an interest in the property. Also, some of the loans are forgivable after 30 years if certain criteria are met. As of December 31, 2015, any forgiveness of loans would not occur for another 20 – 30 years. At this time, information is not available to develop an estimate for any loans which may be forgiven. Therefore, no allowance has been recorded. As loan maturity dates approach, the City will evaluate whether an allowance for forgivable loans should be recorded in the financial statements. As of December 31, 2015, the loans receivable balance was $7,402,814. Significant receivable balances not expected to be collected within one year of December 31, 2015 are as follows: Special Interfund Loans Assessments Property Loans Receivable Receivable Taxes Receivable Total Major Funds: General Fund $ - $ - $261,414 $ - $261,414 Housing Rehabilitation Fund 3,092,873 18,105 - - 3,110,978 Debt Service Funds 1,600,000 - - - 1,600,000 Permanent Improvement Revolving Fund - 7,697 - - 7,697 Development EDA Fund 1,189,421 - - 10,006,362 11,195,783 Redevelopment District Fund 706,116 - 9,273 - 715,389 Water Utility Fund - 48,892 - - 48,892 Sewer Utility Fund - 657 - - 657 Nonmajor Governmental Funds 431,543 4,029 - - 435,572 Total $7,019,953 $79,380 $270,687 $10,006,362 $17,376,382 68 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 77 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 4 UNAVAILABLE REVENUE Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Unavailable Delinquent property taxes receivable (General Fund) $261,414 Delinquent property taxes receivable (Redevelopment District) 9,273 Special assessments not yet due (Permanent Improvement Revolving)916,732 Special assessments not yet due (Housing Rehabilitation)6,774,886 Special assessments not yet due (Nonmajor Funds)174,264 Bond reimbursement payments not yet due (Debt Service Funds)1,640,000 Other miscellaneous (Redevelopment District)63,110 Other miscellaneous (General Fund)1,890 Other miscellaneous (Nonmajor Funds)26,890 Total unavailable revenue for governmental funds $9,868,459 69 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 78 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 5 CAPITAL ASSETS In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the government-wide statement of net assets. The City has elected to use the modified approach as defined by GASB Statement No. 34 for reporting of street infrastructure. As a result, no accumulated depreciation or depreciation expense has been recorded for street infrastructure. Additional information of the modified approach is presented in the Notes to Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the basic approach whereby accumulated depreciation and depreciation expense have been recorded. Modified approach adjustments represent the changes due to implementation of the modified approach for infrastructure reporting. Capital asset activity for the year ended December 31, 2015 is as follows: Beginning Ending Primary Government Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated: Land $15,882,665 $ - $200,000 $ - $15,682,665 Infrastructure - streets 26,011,544 - - - 26,011,544 Permanent easements 1,429,976 - - - 1,429,976 Construction in progress 2,160,818 2,857,948 166,696 (72,400) 4,779,670 Total capital assets, not being depreciated 45,485,003 2,857,948 366,696 (72,400) 47,903,855 Capital assets, being depreciated: Buildings and structures 47,472,381 100,094 - - 47,572,475 Improvements other than buildings 21,553,452 506,808 24,674 - 22,035,586 Infrastructure - other 31,129,983 782,742 - - 31,912,725 Machinery, furniture and equipment 8,652,357 1,348,943 378,526 - 9,622,774 Fleet 8,227,249 629,009 745,217 - 8,111,041 Total capital assets, being depreciated 117,035,422 3,367,596 1,148,417 - 119,254,601 Less accumulated depreciation for: Buildings and structures 11,829,250 1,112,226 - - 12,941,476 Improvements other than buildings 11,240,239 1,153,314 24,674 - 12,368,879 Infrastructure 15,208,416 1,050,611 - - 16,259,027 Machinery, furniture and equipment 4,609,193 947,022 209,930 - 5,346,285 Fleet 4,109,118 696,231 683,756 - 4,121,593 Total accumulated depreciation 46,996,216 4,959,404 918,360 0 51,037,260 Total capital assets being depreciated - net 70,039,206 (1,591,808) 230,057 - 68,217,341 Governmental activities capital assets - net $115,524,209 $1,266,140 $596,753 ($72,400) $116,121,196 70 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 79 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Beginning Ending Primary Government Balance Increases Decreases Transfers Balance Business-type activities: Capital assets, not being depreciated: Land $174,844 $ - $ - $ - $174,844 Construction in progress 1,878 2,286,881 13,000 72,400 2,348,159 Total capital assets, not being depreciated 176,722 2,286,881 13,000 72,400 2,523,003 Capital assets, being depreciated: Buildings and structures 4,767,723 - - - 4,767,723 Improvements other than buildings 7,093,645 61,893 - - 7,155,538 Infrastructure 49,930,520 - - - 49,930,520 Machinery, furniture and equipment 5,304,395 - - - 5,304,395 Total capital assets, being depreciated 67,096,283 61,893 0 0 67,158,176 Less accumulated depreciation for: Buildings and structures 3,706,199 127,777 - - 3,833,976 Improvements other than buildings 2,673,627 289,281 - - 2,962,908 Infrastructure 28,022,894 673,291 - - 28,696,185 Machinery, furniture and equipment 2,325,400 326,113 - - 2,651,513 Total accumulated depreciation 36,728,120 1,416,462 0 0 38,144,582 Total capital assets being depreciated - net 30,368,163 (1,354,569)0 0 29,013,594 Business-type activities capital assets - net $30,544,885 $932,312 $13,000 $72,400 $31,536,597 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $97,637 Public safety 450,909 Engineering 8,852 Operations and recreation 2,475,949 Public information 38,583 Social and economic development 130,009 Internal service 1,757,465 Total depreciation expense - governmental activities $4,959,404 Business-type activities: Water $718,198 Sewer 129,701 Storm water 568,563 Total depreciation expense - business-type activities $1,416,462 71 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 80 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 CITY INDEBTEDNESS The City issues general obligation bonds, to provide funds for the acquisition and construction of major capital facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. As of December 31, 2015, long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rates Issued 12/31/15 Governmental Activities: General Long-Term Debt: General Improvement Bonds: G.O. Improvement Bonds Series 2005A 5/25/2005 2/1/2016 3.50-3.75% $3,705,000 $455,000 G.O. Improvement Bonds Series 2010A 5/7/2010 2/1/2031 1.25-5.7% 3,105,000 2,655,000 G.O. Improvement Refunding Bonds Series 2010C 12/29/2010 2/1/2040 3.0-5.65% 1,770,000 1,640,000 G.O. Improvement Bonds Series 2010D (BABS) 12/29/2010 2/1/2032 1.25-5.15% 13,025,000 11,435,000 G.O. Improvement Bonds Series 2012A HIA 10/17/2012 2/1/2033 0.75 - 3.90% 1,290,000 1,190,000 G.O. Improvement Bonds Series 2014A 12/18/2014 2/1/2040 2.00% 5,070,000 5,070,000 Total General Improvement Bonds 27,965,000 22,445,000 Tax Increment Bonds: Tax Increment Refunding Bonds Series 2008B 12/11/2008 2/1/2024 3.25-4.63% 5,490,000 4,175,000 Total Tax Increment Bonds 5,490,000 4,175,000 Note payable on contract for deed 2/2/2015 3/1/2017 4.00% 2,200,000 2,122,173 Capital lease payable 2/14/2014 1/14/2019 N/A 40,500 24,975 Compensated absences payable N/A N/A N/A N/A 3,752,187 Total governmental activities 35,695,500 32,519,335 Business-Type Activities: General Obligation Revenue Bonds: Utility Revenue Bonds Series 2007A 6/5/2007 8/1/2023 4.00%3,665,000 - Utility Revenue Bonds Series 2008A 12/11/2008 8/1/2020 3.25-4.25% 4,075,000 2,250,000 Utility Refunding Revenue Bonds Series 2010B 5/7/2010 2/1/2025 2.0-3.5% 4,090,000 2,160,000 Utility Crossover Refunding Bonds Series 2013A 7/1/2013 8/1/2023 1.0-1.9%4,170,000 4,170,000 Utility Revenue Bonds Series 2014A 12/18/2014 2/1/2016 2.00%4,930,000 4,930,000 Total General Obligation Revenue Bonds 20,930,000 13,510,000 Compensated absences payable N/A N/A N/A N/A 146,219 Total business-type activities 20,930,000 13,656,219 Total City $56,625,500 $46,175,554 72 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 81 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 GOVERNMENTAL ACTIVITIES Annual debt service requirements to maturity for the governmental activities long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest Principal Interest 2016 $1,215,000 $865,585 $370,000 $172,650 $88,655 $76,345 2017 1,230,000 831,099 395,000 157,813 2,033,518 20,253 2018 1,260,000 797,428 415,000 141,613 - - 2019 1,280,000 760,590 435,000 124,613 - - 2020 1,315,000 720,313 460,000 105,563 - - 2021 1,355,000 676,981 485,000 84,300 - - 2022 1,385,000 631,295 510,000 61,913 - - 2023 1,420,000 583,127 535,000 38,400 - - 2024 1,465,000 530,192 570,000 13,181 - - 2025 1,510,000 472,626 - - - - 2026 1,555,000 412,875 - - - - 2027 1,045,000 356,131 - - - - 2028 1,075,000 302,564 - - - - 2029 1,120,000 246,608 - - - - 2030 1,165,000 187,819 - - - - 2031 1,210,000 126,481 - - - - 2032 1,015,000 69,578 - - - - 2033 160,000 40,290 - - - - 2034 80,000 34,505 - - - - 2035 85,000 30,070 - - - - 2036 90,000 25,323 - - - - 2037 95,000 20,258 - - - - 2038 100,000 14,870 - - - - 2039 105,000 9,155 - - - - 2040 110,000 3,108 - - - - Total $22,445,000 $8,748,871 $4,175,000 $900,046 $2,122,173 $96,598 G.O. Tax Increment Bonds Governmental ActivitiesGovernmental Activities G.O. Improvement Bonds Note Payable Governmental Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 73 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 82 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 BUSINESS-TYPE ACTIVITIES Annual debt service requirements to maturity for the business-type long-term debt are as follows: Year Ending December 31 Principal Interest 2016 $2,995,000 $385,874 2017 1,360,000 346,480 2018 1,385,000 298,868 2019 1,410,000 249,405 2020 1,440,000 195,368 2021 945,000 137,030 2022 970,000 105,691 2023 995,000 72,351 2024 725,000 37,540 2025 745,000 19,863 2026 540,000 5,400 Total $13,510,000 $1,853,870 G.O. Revenue Bonds Governmental Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 74 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 83 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2015 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $23,625,000 $ - $1,180,000 $22,445,000 $1,215,000 G.O. tax increment bonds 4,530,000 - 355,000 4,175,000 370,000 Add: Premiums on bonds 101,314 - 11,251 90,063 - Discounts on bonds (126,523) - (7,540) (118,983) - Total bonds payable 28,129,791 0 1,538,711 26,591,080 1,585,000 Note Payable - 2,200,000 77,827 2,122,173 88,655 Capital lease payable 33,075 - 8,100 24,975 8,100 Compensated absences 3,702,453 2,182,743 2,133,009 3,752,187 2,626,531 Total government activity long-term debt $31,865,319 $4,382,743 $3,757,647 $32,490,415 $4,308,286 Business-type activities: Bonds payable: G.O. revenue bonds $16,700,000 $ - $3,190,000 $13,510,000 $2,995,000 Add: Premiums on bonds 126,503 - 19,513 106,990 - Total bonds payable 16,826,503 0 3,209,513 13,616,990 2,995,000 Compensated absences 149,606 117,072 120,459 146,219 103,682 Total business-type activity long-term debt $16,976,109 $117,072 $3,329,972 $13,763,209 $3,098,682 For governmental activities, compensated absences are paid out of the Employee Administrative internal service fund. ADVANCE CROSSOVER REFUNDING On July 10, 2013, the City issued $4,170,000 in General Obligation Refunding Bonds, Series 2013A with an average interest rate of 1.373% to advance refund $2,145,000 of outstanding Series 2007A Bonds with an average interest rate of 4.00% and $1,840,000 of outstanding Series 2008A Bonds with an average interest rate of 4.12%. The net proceeds of $4,106,498 were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called principal on the refunded bonds on August 1, 2015 for Series 2007A Bonds and August 1, 2016 for the Series 2008A Bonds. The City advance refunded the 2007A General Obligation Utility Revenue Bonds and 2008A General Obligation Utility Revenue Bonds to reduce its total debt service payments from 2014 to 2023 by $234,091 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $215,954. 75 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 84 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 The City is responsible for the debt service of the refunded bonds before the crossover date and the debt service of the refunding bonds after the crossover date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the escrow agent total $1,874,952 at December 31, 2015. Refunded Bonds Refunding Bonds Payment Date 2008A 2013A Escrow Account City 2016 $2,340,788 $363,513 $1,893,513 $810,788 2017 - 790,412 - 790,412 2018 - 793,012 - 793,012 2019 - 795,513 - 795,513 2020 - 801,012 - 801,012 2021 - 284,775 - 284,775 2022 - 290,455 - 290,455 2023 - 290,415 - 290,415 $2,340,788 $4,409,107 $1,893,513 $4,856,382 Debt Service Commitment CAPITAL LEASE PAYABLE In 2014, the City entered into a lease purchase agreement for a copier. The agreement calls for monthly payments of $675 maturing on January 14, 2019. Depreciation in the amount of $8,100 has been recorded as depreciation expense during 2015. The net book value of assets under the capital lease at December 31, 2015 is as follows: December 31, 2015 Equipment $40,500 Accumulated depreciation (14,890) Net $25,610 The following is a schedule of future minimum lease payments under the capital lease: Year Payment 2016 $8,100 2017 8,100 2018 8,100 2019 675 Total $24,975 76 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 85 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of total as a % of Term of Principal and Interest Revenue Bond Issue Proceeds Type debt service net revenues Pledge and Interest paid received 2012A Taxable GO Housing Imp. Area Housing Improvement Area Fee 100%54% 2012-2033 $1,574,541 $89,194 $165,806 2008B GO Tax Increment Street Improvements TIF 100%100% 2009-2024 5,075,044 540,800 540,800 2008A GO Utility Revenue Utility Infrastructure Projects Utility charges 100%100% 2009-2020 2,535,450 499,613 499,613 2010A Taxable GO Housing Imp. Area Housing Improvement Area Fee 100%94% 2011-2031 3,911,420 246,704 261,494 2010B GO Utility Infrastructure Projects Utility charges/Special Assessments 100%100% 2011-2025 2,477,412 496,368 496,368 2010C GO Refunding - Louisiana Crt Louisiana Court Project Operating revenues of LA Crt 100%96% 2011-2040 2,918,443 116,630 121,228 2013A GO Crossover Refunding Utility Infrastructure Projects Utility charges 100%100% 2013-2023 4,409,108 53,513 53,513 2014A GO Utilty Revenue Utility Infrastructure Projects Utility charges 100%100% 2015-2026 5,537,672 61,077 61,077 Intent of schedule is only for revenue backed or fee based revenue to cover debt service, not tax supported revenues. Revenue Pledged Current Year Note 7 DEFINED BENEFIT PENSION PLANS A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Pensions. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. B. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. 77 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 86 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. C. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90 percent funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases. The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. 78 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 87 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. D. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their annual covered salary in calendar year 2015. The City was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2015. The City’s contributions to the GERF for the year ended December 31, 2015, were $1,026,806. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2015. The City was required to contribute 16.20% of pay for PEPFF members in calendar year 2015. The City’s contributions to the PEPFF for the year ended December 31, 2015, were $1,087,225. The City’s contributions were equal to the required contributions as set by state statute. E. PENSION COSTS 1. GERF Pension Costs At December 31, 2015, the City reported a liability of $11,728,040 for its proportionate share of the GERF’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2015, the City’s proportion was .2263% which was a decrease of .0158% from its proportion measured as of June 30, 2014. For the year ended December 31, 2015, the City recognized pension expense of $1,375,438 for its proportionate share of the GERF’s pension expense. 79 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 88 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 At December 31, 2015, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $ - $591,292 Changes in actuarial assumptions - - Difference between projected and actual investment earnings 1,110,239 - Changes in proportion - 556,654 Contributions paid to PERA subsequent to the measurement date 523,095 - Total $1,633,334 $1,147,946 $523,095 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31, Amount 2016 ($105,088) 2017 (105,088) 2018 (105,090) 2019 277,559 2020 - Thereafter - 2. PEPFF Pension Costs At December 31, 2015, the City reported a liability of $8,146,798 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2015, the City’s proportion was .717% which was an increase of .0160% from its proportion measured as of June 30, 2014. For the year ended December 31, 2015, the City recognized pension expense of $1,368,442 for its proportionate share of the PEPFF’s pension expense. The City also recognized $64,530 for the year ended December 31, 2015, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF. Legislation passed in 2013 80 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 89 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. At December 31, 2015, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $ - $1,321,144 Changes in actuarial assumptions - - Difference between projected and actual investment earnings 1,419,445 - Changes in proportion 144,005 - Contributions paid to PERA subsequent to the measurement date 546,932 - Total $2,110,382 $1,321,144 $546,932 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31, Amount 2016 $119,433 2017 119,433 2018 119,433 2019 119,434 2020 (235,427) Thereafter - F. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.75% per year Active Member Payroll Growth 3.50% per year Investment Rate of Return 7.90% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP-2000 tables for males or females, as 81 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 90 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 appropriate, with slight adjustments. Cost of living benefit increases for retirees are assumed to be 1% effective every January 1st until 2034, and 2.5% thereafter. There are no changes in actuarial assumptions in 2015. Actuarial assumptions used in the June 30, 2015, valuation were based on the results of actuarial experience studies. The experience study in the GERF was for the period July 1, 2004, through June 30, 2008, with an update of economic assumptions in 2014. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009. The long-term expected rate of return on pension plan investments is 7.9%. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Stocks 45% 5.50% International Stocks 15% 6.00% Bonds 18% 1.45% Alternative Assets 20% 6.40% Cash 2% 0.50% G. DISCOUNT RATE The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 82 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 91 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 H. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (6.9%) Discount Rate (7.9%) Discount Rate (8.9%) City's proportionate share of the GERF net pension liability $18,440,648 $11,728,040 $6,184,458 City's proportionate share of the PEPFF net pension liability 15,878,194 8,146,798 1,759,317 I. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately- issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. J. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2015 is as follows: GERF $1,375,438 PEPFF 1,368,442 Total $2,743,880 Note 8 DEFINED CONTRIBUTION PLAN Four council members of the City of St. Louis Park, Minnesota are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official’s employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. 83 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 92 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member’s account annually. Total contributions made by the City during fiscal year 2015 were: Required Employer Employee (Pension Expense) Employee Employer Rate $2,672 $2,672 5% 5% 5% Contribution Amount Percentage of Covered Payroll Note 9 OTHER POST-EMPLOYMENT BENEFITS A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 7, the City provides post- employment health care benefits (as defined in paragraph B) for retired employees through a single-employer defined benefit plan. The City’s OPEB plan is administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate report. B. BENEFITS PROVIDED Retirees The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Police officers, firefighters, sergeants, and dispatchers age 50 and over with 3 years of service, or age 65 with 1 year of service may continue medical and dental coverage at their own expense. Non-union and 49ers union employees age 55 with 3 years of service, age 65 with 1 year of service, any age with 30 years of service, or those whose age plus service is at least 90 may continue medical and dental coverage at their own expense. Employees may obtain dependent coverage at retirement only if the employee was receiving dependent coverage immediately prior to retirement. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan 84 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 93 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. C. PARTICIPANTS As of the actuarial valuation dated January 1, 2015, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 17 Active employees 254 Total 271 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as- you-go basis. Contribution requirements are negotiated between the City and union representatives and established by Council for nonunion groups. 85 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 94 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2015, was calculated as follows: Annual required contribution (ARC)$716,073 Interest on net OPEB obligation 90,975 Adjustment to ARC (131,527) Annual OPEB cost 675,521 Contributions made during the year (197,287) Increase (decrease) in net OPEB obligation 478,234 Net OPEB obligation - beginning of year 2,274,367 Net OPEB obligation - end of year $2,752,601 For governmental activities, the net OPEB obligation has been and is anticipated to be liquidated by the Employee Administrative internal service fund. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the previous three years was as follows: Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation December 31, 2013 $573,578 $233,390 40.7% $1,944,907 December 31, 2014 583,268 253,808 43.5% 2,274,367 December 31, 2015 675,521 197,287 29.2% 2,752,601 86 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 95 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 F. FUNDED STATUS AND FUNDING PROGRESS The City currently has no assets that have been irrevocably deposited in a trust for future health benefits, therefore, the actuarial value of assets is zero. The funded status of the plan was as follows: Unfunded Actuarial Actuarial UAAL as a Actuarial Actuarial Accrued Accrued Funded Covered Percentage of Valuation Value of Assets Liability (AAL)*Liability (UAAL) Ratio Payroll Covered Payroll Date (a) (b) (b-a) (a/b) (c) ( (b-a) / c) January 1, 2015 $0 $5,257,905 $5,257,905 0.0% $21,324,812 24.7% *Using the Projected Unit Credit cost method. G. ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2015 actuarial valuation, the Projected Unit Credit cost method was used. The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses) and an initial annual health care cost trend rate of 8% reduced by .5% each year to arrive at an ultimate health care cost trend rate of 5.0%, which includes a 2.75% inflation assumption. The actuarial value of assets was $0. The plan’s unfunded actuarial accrued liability is being amortized using the level dollar over 30 years on an open basis. The remaining amortization period at December 31, 2015 was 30 years. 87 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 96 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 10 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The City has established interfund loans to finance infrastructure improvements, project reimbursements, housing rehabilitation loans and to provide initial financing for TIF districts. A summary at December 31, 2015 is as follows: Interfund Interfund Loan Loan Receivable Payable Major Funds: Housing Rehabilitation $ - $2,201,718 Development EDA 10,006,362 - Redevelopment District - 7,804,644 Total $10,006,362 $10,006,362 The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as due from other funds in the advancing fund, and a due to other fund in the fund with the deficit, until adequate resources are received. Amounts reported as due to/from other funds at December 31, 2015 are as follows: Due From Due To Other Funds Other Funds Major Funds: PIR $64,580 $ - Other: Community development - 64,580 Total $64,580 $64,580 88 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 97 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Interfund transfers at December 31, 2015 are as follows: Transfers Transfers Notes #'s In Out Notes #'s General Fund (3) (5) $1,867,398 $2,194,245 (1) (7) Housing Rehabilitation Fund (1)1,125,400 345,798 (2) (3) Debt Service Fund (4) (6) 1,367,072 - (6) (8) PIR Fund - 430,639 (1) (2) (5) Sidewalk and Trails Fund (8)910,442 1,948,500 (2) Streets Capital Projects Fund (2) (5) 7,235,027 - Development EDA Fund - 500,000 (2) (4) Redevelopment District Fund - 1,854,860 (1) (2) (4) Nonmajor Governmental Fund (2)790,902 2,188,808 (2) (3) Water Fund - 1,292,652 (2) (3) (7) Sewer Fund - 1,344,487 (2) (3) (7) Solid Waste Fund - 214,186 (3) (7) Storm Water Fund - 841,524 (2) (3) (7) Internal Service Fund (1) (2) (7) 769,900 910,442 (8) $14,066,141 $14,066,141 (1) To achieve fund balance policy and long term sustainability. (2) Funding for capital improvements projects (3) For administrative and overhead costs of the General Fund. (4) Funding for debt service payments. (5) Transfer for special assessments. (6) Louisiana Court interest on reserve to debt service. (7) Funding for technology replacement. (8) To allocate levied amount for sidewalks and trails Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund or to establish or close funds. All of the City’s interfund transfers fall under these categories and are considered routine and consistent with previous practices. 89 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 98 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 11 FUND BALANCE/NET POSITION A. CLASSIFICATIONS At December 31, 2015, a summary of the governmental fund balance classifications are as follows: Major Funds: General Fund: Nonspendable - prepaid items $63,765 Nonspendable - inventory 502,809 Restricted for E-911 purposes 464,469 Assigned for Inspections 550,000 Assigned for DWI enforcement 164,164 Assigned for fire expenditures 43,920 Housing Rehabilitation: Nonspendable - long-term loans receivable 3,092,873 Debt Service Funds: Restricted for debt service 1,881,243 Permanent Improvement Revolving: Assigned for capital improvements 2,337,942 Development EDA: Nonspendable - long-term loans receivable 1,189,421 Nonspendable - land held for resale 5,006,216 Assigned for redevelopment efforts 20,220,641 Sidewalks and trails: Assigned for sidewalks, trails and bikeway 2,581,015 Streets Capital Projects: Assigned for street construction projects 1,718,137 Redevelopment District: Restricted for tax increment purposes 3,587,670 Other Governmental Funds: Nonspendable - long-term loans receivable 431,543 Restricted for cable tv equipment purchases 582,792 Restricted for police and fire purchases 2,837,660 Restricted for park improvement 43,920 Committed for cable tv programming 481,009 Assigned for cable tv programming 554,037 Assigned for special service districts 273,681 Assigned for development of parks 3,647,610 Assigned for street rehabilitation 2,039,178 All Governmental Funds: Unassigned 8,690,683 Total fund balance $62,986,398 90 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 99 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 At December 31, 2015, the City reported $10,608,709 of restricted net position on the Statement of Net Position as follows: Restricted for: Tax increment $3,587,670 E-911 purposes 464,469 Park improvement 43,920 Debt service 3,092,198 Cable TV equipment 582,792 Police and fire purposes 2,837,660 Total $10,608,709 B. MINIMUM FUND BALANCE POLICY The City Council has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target of unassigned fund balance amount for cash flow timing needs in the range of 35-50% of the subsequent years budget expenditures. At December 31, 2015, the unassigned fund balance for the General Fund was 45% of the subsequent year’s budgeted expenditures. Note 12 DEFICIT FUND BALANCE/NET POSITION At December 31, 2015, individual funds with deficit fund balance/net position are as follows: Amount Future Financing Source Redevelopment District: Eliot Park TIF $19,400 Future tax increment HRA Levy 3,657,675 General property tax levy Elmwood Village 2,360,103 Future tax increment Hard Coat TIF District 127,368 Future tax increment Shoreham TIF District 14,539 Future tax increment Excelsior Blvd TIF District 13,782 Future tax increment Internal Service Funds: Employee Administrative 24,146,807 Future transfers Total $30,339,674 91 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 100 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 13 COMMITMENTS AND CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for risks of loss, including workers compensation, property and general liability and employee health and accident insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. PROPERTY AND CASUALTY INSURANCE Property and casualty insurance coverage is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a common risk management and insurance program for Minnesota cities: general liability, excess liability property, automobile, marine, crime, employee dishonesty, boiler and open meeting law. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self- sustaining through member premiums and reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions of the insurance policies. The deductible amounts are $50,000 for each occurrence and a $150,000 annual aggregate. Current State Statute (Minnesota Statute subd. 466.04) provides limits of liability for the City. These limits are that the combination of defense expense and indemnification expense shall not exceed $500,000 in the case of one claimant or $1,500,000 for any number of claims arising out of a single occurrence. WORKERS COMPENSATION INSURANCE Up until December 1, 2003, the City was self-insured on workers compensation coverage up to maximum claim losses of $280,000. Individual claim amounts in excess of $280,000 are covered by the State of Minnesota’s Workers Compensation Reinsurance Association (WCRA) as required by law. The City carried an excess employer’s liability indemnity policy as well as an employer’s liability policy which limited the City’s exposure. The maximum retention for each accident was $626,861 under the excess liability policy and $750,000 under the employer’s liability policy. After December 1, 2003, the City is insured through the LMCIT for workers compensation. The City established the Uninsured Loss Fund to account for and finance its uninsured risk of loss related to injuries to employees. Under this program, the Uninsured Loss Fund provides coverage for maximum individual claims losses of $280,000 or $626,861 per accident. Premiums are paid into the Internal Service Fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. At December 31, 2015, the estimated liability for unpaid claims was immaterial and therefore, has not been recorded in the financial statements. 92 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 101 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 B. LITIGATION The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2015. D. TAX INCREMENT DISTRICTS The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. The City has issued several tax increment pay-as-you-go revenue notes. These notes are not a general obligation of the City and are payable solely from tax increments. Accordingly, these notes are not reflected in the financial statements of the City. Details of the pay-as-you-go revenue notes are as follows: Hoigaard Village - Tax Exempt Tax Increment Financing Revenue Bonds, Series 2010A – issued in 2010, with a principal sum of $3,495,000, and an interest rate ranging from 1.50% - 5.00% per annum. Semi-annual principal and interest payments shall be paid commencing February 1, 2011 and continuing through February 1, 2023. Payments are payable solely from available tax increment, and the City shall have no obligation to pay any unpaid balance that may remain after the final payment on February 1, 2023. At December 31, 2015 the principal amount outstanding on the bonds was $2,385,000. Hoigaard Village - Tax Increment Financing Revenue Note, Series 2010B – issued in 2010, with a principal sum of $935,000, and an interest rate ranging from 1.50 – 5.00% per annum. Semi- annual principal and interest payments shall be paid commencing February 1, 2011 and continuing through February 1, 2023. Payments are payable solely from available tax increment, and the City shall have no obligation to pay any unpaid balance that may remain after the final payment on February 1, 2023. At December 31, 2015 the principal amount outstanding on the note was $576,935. Ellispe II, LLC - Tax Increment Financing Revenue Note, Series 2015 – issued in 2015, with a principal sum of $686,195, and an interest rate of 5.6 % per annum. Semi-annual principal and 93 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 102 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 interest payments shall be paid commencing August 1, 2015 and continuing through February 1, 2023. Payments are payable solely from available tax increment, and the City shall have no obligation to pay any unpaid balance that may remain after the final payment on February 1, 2023. At December 31, 2015 the principal amount outstanding on the note was $627,135. E. LOUISIANA COURT PROJECT The City of St. Louis Park has entered into an agreement with Project for Pride in Living Louisiana Court Limited Partnership to issue $4,505,000 in General Obligation Bonds – Series 2000A for the purpose of acquiring and renovating certain rental housing facilities within the City of St. Louis Park intended primarily for low and moderate income persons and their families. During 2010, the 2000A bonds were refunded by the $1,770,000 General Obligation Refunding Bonds, Series 2010C. The City of St. Louis Park will receive monthly principal and interest payments from Project for Pride in Living Louisiana Court Limited Partnership to cover all debt service obligations of the City of St. Louis Park on a semi-annual basis. In the event that the City of St. Louis Park does not receive payment from Project for Pride in Living, the City of St. Louis Park is still under obligation to make all debt service payments. At such time, the City of St. Louis Park would pursue collection of above referenced principal and interest payments per the agreement dated May 1, 2000. As of December 31, 2015, the outstanding principle on the bonds is $1,640,000. 94 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 103 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 F. CONSTRUCTION COMMITMENTS The City has active construction projects as of December 31, 2015. The projects include street construction in areas with newly developed housing, widening and construction of existing streets and bridges, and the construction of additional storm sewer and utility improvements. At year end the City’s commitments with contractors are as follows: Remaining Project Commitment Replace ice system in Rec Center $2,542,167 Water meter replacement project (contract 91-15) 908,600 Water meter replacement project (contract 91-15) 616,795 2014 Local Street Rehab - Area #2 (contract 48-14) 262,117 2015 Local Street Rehab (contract 34-15) 196,051 2015 Connect the Park 182,631 MSA Street Rehab (contract 46-15) 142,606 Louisiana Ave Bridge (contract 87-13) 55,451 MSA Street Improvement (contract 47-14) 45,714 2014 Random Concrete repairs 44,290 37th St Bridge (contract 87-13) 39,029 Hwy 7 at Louisiana construction support (contract 55-13) 27,922 Total commitments $5,063,373 Note 14 CONDUIT DEBT OBLIGATIONS From time to time, the City has issued industrial, hospital or housing revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial, commercial or housing facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2015, there were 13 revenue bonds issued. The aggregate principal amount payable as of December 31, 2015 is $112,437,341. 95 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 104 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 72 Fair Value Measurement and Application. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2015. Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 – except those provisions that address employers and governmental nonemployer contributing entities for pensions that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15, 2016. Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016. Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017. Statement No. 76 The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The provisions in Statement 76 are effective for reporting periods beginning after June 15, 2015. Statement No. 77 Tax Abatement Disclosures. The provisions of this Statement are effective for reporting periods beginning after December 31, 2015. Statement No. 78 Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The provisions of this Statement are effective for reporting periods beginning after December 15, 2015. Statement No. 79 Certain External Investment Pools and Pool Participants. The provisions of this Statement are effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio quality, custodial credit risk, and shadow pricing which are effective for reporting periods beginning after December 15, 2015. Statement No. 80 Blending Requirements for Certain Component Units. The provisions of this Statement are effective for reporting periods beginning after June 15, 2016. Statement No. 81 Irrevocable Split – Interest Agreements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2016. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 75 will have a material impact. 96 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 105 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 16 CHANGE IN ACCOUNTING PRINCIPLE / PRIOR PERIOD ADJUSTMENT For the year ended December 31, 2015, the City implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27. GASB 68 addresses accounting and financial reporting for pension plans that are provided to employees of state and local governments. The standard requires the City to record its share of the net pension liability of defined benefit plans, as well as any corresponding deferred inflows and outflows of resources. See Note 7 for further information. The standard required retroactive implementation which resulted in a restatement of net position as of December 31, 2014. Certain amounts necessary to fully restate 2014 financial information are not determinable, therefore, prior year comparative amounts have not been restated. On January 1, 2015 the City also recorded a prior period adjustment in the Capital Replacement Internal Service Fund. Fund balance previously reported was understated due to expenditures for capital assets being expensed rather than capitalized. Details of the prior period adjustment are as follows: Governmental Governmental Activities Activities Internal Service Funds Net position - January 1, 2015, as previously reported $155,835,398 $15,048,546 Prior period adjustment: Deferred outflows of resources - pension related 973,369 973,369 Net pension liability (18,943,732) (18,943,732) Capital assets expensed 82,302 82,302 Net position - January 1, 2015, as restated $137,947,337 ($2,839,515) 97 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 106 - This page intentionally left blank - 98 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 107 REQUIRED SUPPLEMENTARY INFORMATION 99 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 108 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 4 For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 Budgeted Amounts Original Final Revenues: Property taxes $22,364,509 $22,364,509 $22,653,094 $288,585 $21,176,543 Licenses and permits: Business regulatory licenses 611,883 611,883 657,487 45,604 617,861 Non-business licenses and permits 2,636,275 2,636,275 3,655,215 1,018,940 2,795,822 Total licenses and permits 3,248,158 3,248,158 4,312,702 1,064,544 3,413,683 Intergovernmental: Federal 1,500 1,500 10,069 8,569 50,575 State shared taxes: Highway user tax 525,000 525,000 682,966 157,966 549,515 Insurance premium tax 545,000 545,000 632,757 87,757 604,526 State of Minnesota: Other 73,670 73,670 189,429 115,759 75,527 PERA 45,205 45,205 45,205 - 45,205 Police training reimbursement 20,000 20,000 16,759 (3,241) 15,125 School district 58,702 58,702 61,467 2,765 57,375 Other local governments 23,200 23,200 30,743 7,543 1,624 Total intergovernmental 1,292,277 1,292,277 1,669,395 377,118 1,399,472 Charges for services: General government 731,261 731,261 764,072 32,811 721,268 Public safety 96,381 96,381 127,536 31,155 128,477 Public works - signals/lighting 17,250 17,250 17,250 - - Culture and rec 1,067,900 1,067,900 1,208,072 140,172 1,027,284 Rent of City property 1,066,118 1,066,118 1,220,131 154,013 1,112,939 Total charges for services 2,978,910 2,978,910 3,337,061 358,151 2,989,968 Fines and forfeits: Municipal court 300,000 300,000 222,928 (77,072) 333,849 Liquor violations 12,000 12,000 1,250 (10,750) 20,000 Property forfeits 8,000 8,000 37,423 29,423 14,877 Miscellaneous violations 200 200 2,350 2,150 820 Total fines and forfeits 320,200 320,200 263,951 (56,249) 369,546 Investment income 140,000 140,000 68,907 (71,093) 119,831 Miscellaneous 142,300 142,300 194,998 52,698 200,944 Total revenues 30,486,354 30,486,354 32,500,108 2,013,754 29,669,987 2015 Actual Amounts Variance with Final Budget - Positive (Negative) 2014 Actual Amounts 100 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 109 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 4 For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 Budgeted Amounts Expenditures:Original Final General government: Administration: Current: Personal services $550,583 $550,583 $536,434 $14,149 $475,610 Supplies 3,000 3,000 1,376 1,624 3,003 Other services and charges 425,600 425,600 479,469 (53,869) 415,146 Total administration 979,183 979,183 1,017,279 (38,096) 893,759 General services: Supplies 15,000 15,000 21,630 (6,630) 66,779 Other services and charges 216,809 216,809 166,902 49,907 31,785 Capital outlay 250,000 250,000 44,364 205,636 - Total general services 481,809 481,809 232,896 248,913 98,564 Human resources: Current: Personal services 612,982 612,982 623,158 (10,176) 624,984 Supplies 4,250 4,250 7,932 (3,682) 11,968 Other services and charges 188,697 188,697 226,866 (38,169) 160,766 Total human resources 805,929 805,929 857,956 (52,027) 797,718 Communications, marketing and community outreach Current: Personal services 346,692 346,692 294,666 52,026 361,665 Materials and supplies 27,600 27,600 14,696 12,904 24,824 Other services and charges 285,535 285,535 284,836 699 260,060 Total communications, etc.659,827 659,827 594,198 65,629 646,549 Technology and support services: Current: Personal services 807,777 807,777 810,540 (2,763) 726,670 Materials and supplies 7,500 7,500 9,326 (1,826)3,440 Other services and charges 653,275 653,275 553,613 99,662 668,314 Total technology and support services 1,468,552 1,468,552 1,373,479 95,073 1,398,424 Accounting: Current: Personal services 517,011 517,011 511,445 5,566 491,721 Materials and supplies 3,000 3,000 2,903 97 2,361 Other services and charges 342,209 342,209 339,314 2,895 328,547 Total accounting 862,220 862,220 853,662 8,558 822,629 Assessing: Current: Personal services 589,474 589,474 589,767 (293) 548,300 Materials and supplies 1,250 1,250 452 798 1,069 Other services and charges 11,575 11,575 11,286 289 11,224 Total assessing 602,299 602,299 601,505 794 560,593 2015 Actual Amounts Variance with Final Budget - Positive (Negative) 2014 Actual Amounts 101 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 110 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 4 For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 Budgeted Amounts Expenditures: (continued)Original Final General government: (continued) Facilities maintenance: Current: Personal services $420,161 $420,161 $395,966 $24,195 $393,929 Materials and supplies 89,000 89,000 86,591 2,409 78,096 Other services and charges 585,675 585,675 590,192 (4,517) 567,674 Total facilities maintenance 1,094,836 1,094,836 1,072,749 22,087 1,039,699 Community development: Current: Personal services 1,189,963 1,189,963 1,203,367 (13,404) 1,108,181 Materials and supplies 950 950 735 215 775 Other services and charges 54,700 54,700 49,584 5,116 9,489 Total community development 1,245,613 1,245,613 1,253,686 (8,073) 1,118,445 Total general government 8,200,268 8,200,268 7,857,410 342,858 7,376,380 Public safety: Police: Current: Personal services 7,597,634 7,597,634 7,553,821 43,813 7,148,110 Materials and supplies 131,050 131,050 146,217 (15,167) 137,665 Other services and charges 484,833 484,833 459,204 25,629 406,654 Total police 8,213,517 8,213,517 8,159,242 54,275 7,692,429 Fire protection: Current: Personal services 3,295,606 3,295,606 3,274,492 21,114 3,095,564 Materials and supplies 75,115 75,115 105,964 (30,849) 116,049 Other services and charges 345,175 345,175 375,853 (30,678) 324,938 Total fire protection 3,715,896 3,715,896 3,756,309 (40,413) 3,536,551 Inspection services: Current: Personal services 2,044,534 2,044,534 1,893,241 151,293 1,765,255 Materials and supplies 12,000 12,000 15,468 (3,468)6,822 Other services and charges 84,091 84,091 86,745 (2,654) 94,709 Total inspection services 2,140,625 2,140,625 1,995,454 145,171 1,866,786 Total public safety 14,070,038 14,070,038 13,911,005 159,033 13,095,766 2015 Actual Amounts Variance with Final Budget - Positive (Negative) 2014 Actual Amounts 102 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 111 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 4 For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 Budgeted Amounts Expenditures: (continued)Original Final Operations and recreation: Public works administration: Current: Personal services $207,852 $207,852 $192,782 $15,070 $227,126 Materials and supplies 6,000 6,000 2,464 3,536 2,289 Other services and charges 18,000 18,000 17,025 975 6,889 Total public works administration 231,852 231,852 212,271 19,581 236,304 Public works operations: Current: Personal services 1,365,722 1,365,722 1,341,093 24,629 1,355,662 Materials and supplies 500,000 500,000 392,462 107,538 526,351 Other services and charges 898,013 898,013 655,005 243,008 739,462 Total public works operations 2,763,735 2,763,735 2,388,560 375,175 2,621,475 Culture and recreation: Current: Personal services 4,013,912 4,013,912 4,050,380 (36,468) 3,850,145 Materials and supplies 992,824 992,824 780,168 212,656 942,986 Other services and charges 1,858,971 1,858,971 1,723,917 135,054 1,719,606 Total culture and recreation 6,865,707 6,865,707 6,554,465 311,242 6,512,737 Total operations and recreation 9,861,294 9,861,294 9,155,296 705,998 9,370,516 Engineering: Current: Personal services 363,452 363,452 277,661 85,791 120,586 Materials and supplies 11,450 11,450 8,141 3,309 14,049 Other services and charges 117,936 117,936 95,349 22,587 88,858 Total engineering 492,838 492,838 381,151 111,687 223,493 Total expenditures 32,624,438 32,624,438 31,304,862 1,319,576 30,066,155 Revenues over (under) expenditures (2,138,084) (2,138,084) 1,195,246 3,333,330 (396,168) Other financing sources (uses): Transfers in 1,851,759 1,851,759 1,867,398 15,639 1,827,564 Transfers out - - (2,194,245)(2,194,245) (1,057,425) Total other financing sources (uses) 1,851,759 1,851,759 (326,847)(2,178,606) 770,139 Net change in fund balance ($286,325) ($286,325) 868,399 $1,154,724 373,971 Fund balance - January 1 16,162,737 15,788,766 Fund balance - December 31 $17,031,136 $16,162,737 Actual Amounts Variance with Final Budget - Positive (Negative) 2014 Actual Amounts 2015 103 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 112 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 SCHEDULE OF FUNDING PROGRESS - POST EMPLOYMENT BENEFIT PLAN For The Year Ended December 31, 2015 Unfunded Actuarial Actuarial Actuarial UAAL as a Actuarial Value of Accrued Accrued Funded Covered Percentage of Valuation Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll Date (a)(b)(b-a)(a/b)(c) ( (b-a) / c) January 1, 2009 $ - $3,260,061 $3,260,061 0.0% $16,906,064 19.3% January 1, 2011 $ - $3,081,141 $3,081,141 0.0% $16,962,171 18.2% January 1, 2013 $ - $5,140,716 $5,140,716 0.0% $17,338,372 29.6% January 1, 2015 $ - $5,257,905 $5,257,905 0.0% $21,324,812 24.7% *Using the projected unit credit actuarial pay cost method. 104 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 113 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2015 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount)Liability as a Net Position as (Percentage) of of the Net Covered- Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Employee Covered-Employee of the Total Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability June 30, 2015 December 31, 2015 0.2263% $11,728,040 $13,317,871 88.1%78.2% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 105 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 114 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2015 Statutorily Contributions in Contribution Covered- Contributions as a Required Relation to the Deficiency Employee Percentage of Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered-Employee Ending (a) Contribution (b)(a-b)(c)Payroll (b/c) December 31, 2015 $1,026,806 $1,026,806 $0 $13,690,747 7.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 106 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 115 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2015 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount)Liability as a Net Position as (Percentage) of of the Net Covered- Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Employee Covered-Employee of the Total Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability June 30, 2015 December 31, 2015 0.7170% $8,146,798 $6,568,763 124.0%86.6% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 107 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 116 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2015 Statutorily Contributions in Contribution Covered- Contributions as a Required Relation to the Deficiency Employee Percentage of Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered-Employee Ending (a) Contribution (b)(a-b)(c)Payroll (b/c) December 31, 2015 $1,087,225 $1,087,225 $0 $6,711,265 16.2% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 108 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 117 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTES TO RSI December 31, 2015 Note A LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the major funds. Note B MODIFIED APPROACH FOR CITY STREETS AND TRAILS INFRASTRUCTURE CAPITAL ASSETS In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines infrastructure as the basic physical assets including the street and trail system; water treatment and distribution system; wastewater collection system; park and recreation lands and improvement system; storm water conveyance system; and building combined with site amenities such as parking and landscape areas used by the City in the conduct of its business. Each major infrastructure can be divided into subsystems. For example, the street and trail system can be divided into pavement widths, curb type and sidewalk. City owned streets could further be classified as collector or local. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems. The City elects to use the modified approach as defined in GASB Statement No. 34 for infrastructure reporting for its Pavement Management Program. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: 1) The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. 2) The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City’s policy relative to maintaining the street and trail assets is to achieve an average rating of “Good” for all segments. This acceptable rating allows minor cracking and patching of the pavement along with minor roughness that could be noticeable to the users of the system. 109 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 118 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTES TO RSI December 31, 2015 In the fall of 2014, the City conducted a physical condition assessment of five of eight areas of the City. This assessment will be performed every two years. Each street segment was assigned a physical condition based on potential defects. An Overall Condition Index (OCI) was assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street. The following conditions were defined: Range Description 86 - 100 Excellent 71 - 85 Very good 56 - 70 Good 41 - 55 Fair 26 - 40 Poor 11 - 25 Very poor 0 - 10 Failed As of December 31, 2015, the City’s street and trail system was rated at an OCI index of 65 on the average with detail condition as follows: Condition % of Streets and Trails Excellent to Good 48.2% Fair 22.6% Poor to Substandard 29.2% The City’s streets are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short-term maintenance activities such as pothole patching, crack sealing, seal coating and overlaying. The City expended $2,050,904 on street maintenance for the year ending December 31, 2015. These expenditures delayed deterioration; however, the overall condition of the system was not improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures through 2022 required to maintain the City’s street system at the average OCI rating of “good” is approximately $2,622,000. Year Maintenance Estimate Actual Expenditures OCI Rating 2013 $1,758,697 $1,874,596 70% 2014 $2,300,000 $2,118,883 70% 2015 $2,622,000 $2,050,904 65% 110 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 119 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTES TO RSI December 31, 2015 Note C PENSION INFORMATION PERA – General Employees Retirement Fund There are no factors that affect trends in the amounts reported, such as change of benefit terms or assumptions. With only one year reported in the RSI, there is no additional information to include in the notes. Details can be obtained from the financial reports of PERA. PERA – Public Employees Police and Fire Fund There are no factors that affect trends in the amounts reported, such as change of benefit terms or assumptions. With only one year reported in the RSI, there is no additional information to include in the notes. Details can be obtained from the financial reports of PERA. 111 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 120 - This page intentionally left blank - 112 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 121 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 113 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 122 - This page intentionally left blank - 114 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 123 NONMAJOR GOVERNMENTAL FUNDS 115 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 124 - This page intentionally left blank - 116 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 125 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. CAPITAL PROJECT FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 117 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 126 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 15 NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 Special Capital Revenue Project 2015 2014 Assets Cash and investments $1,745,689 $8,600,709 $10,346,398 $9,529,865 Accrued interest receivable 3,880 22,344 26,224 21,848 Due from other governments 86,527 - 86,527 59,970 Accounts receivable 167,556 595,702 763,258 566,218 Special assessments receivable: Delinquent 3,418 - 3,418 2,507 Deferred 171,952 - 171,952 198,208 Loans receivable - noncurrent 431,543 - 431,543 426,165 Total assets $2,610,565 $9,218,755 $11,829,320 $10,804,781 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $4,698 $147,433 $152,131 $42,903 Salaries payable 20,898 - 20,898 19,132 Due to other governments 5,619 - 5,619 1,041 Contracts payable - 102,954 102,954 78,969 Due to other funds 64,580 - 64,580 44,004 Unearned revenue - 400,000 400,000 200,000 Total liabilities 95,795 650,387 746,182 386,049 Deferred inflows of resources: Unavailable revenue 201,154 - 201,154 221,613 Total deferred inflows of resources 201,154 0 201,154 221,613 Fund balance: Nonspendable 431,543 - 431,543 426,165 Restricted 582,792 2,881,580 3,464,372 3,799,248 Committed 481,009 - 481,009 483,590 Assigned 827,718 5,686,788 6,514,506 5,494,550 Unassigned (9,446) - (9,446)(6,434) Total fund balance 2,313,616 8,568,368 10,881,984 10,197,119 Total liabilities, deferred inflows of resources, and fund balance $2,610,565 $9,218,755 $11,829,320 $10,804,781 Nonmajor Totals Governmental Funds 118 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 127 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 16 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 Special Capital Revenue Project 2015 2014 Revenues: Taxes: Property $ - $810,000 $810,000 $810,000 Franchise 669,796 2,245,936 2,915,732 2,268,213 Intergovernmental: Other 86,560 94,702 181,262 175,388 Charges for services 25,448 9,000 34,448 10,007 Special assessments 198,119 - 198,119 204,376 Interest on investments 8,494 39,089 47,583 91,927 Miscellaneous 42,494 719,353 761,847 588,104 Total revenues 1,030,911 3,918,080 4,948,991 4,148,015 Expenditures: Current: Public safety - 13,485 13,485 81,539 Operations and recreation - 555,308 555,308 1,130,273 Engineering - 37,504 37,504 202,752 Public information 561,252 - 561,252 462,341 Housing and maintenance 84,505 - 84,505 130,534 Social and economic development 270,167 - 270,167 205,919 Capital outlay: Public safety - 343,078 343,078 16,901 Operations and recreation - 988,759 988,759 337,505 Public information 12,162 - 12,162 - Total expenditures 928,086 1,938,134 2,866,220 2,567,764 Revenues over (under) expenditures 102,825 1,979,946 2,082,771 1,580,251 Other financing sources (uses): Transfers in - 790,902 790,902 82,446 Transfers out (134,506) (2,054,302) (2,188,808) (2,453,219) Total other financing sources (uses)(134,506) (1,263,400) (1,397,906) (2,370,773) Net change in fund balance (31,681)716,546 684,865 (790,522) Fund balance - January 1 2,345,297 7,851,822 10,197,119 10,987,641 Fund balance - December 31 $2,313,616 $8,568,368 $10,881,984 $10,197,119 Totals Nonmajor Governmental Funds 119 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 128 - This page intentionally left blank - 120 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 129 NONMAJOR SPECIAL REVENUE FUNDS Cable Television Fund – used to account for revenues received from franchise fees and expenditures related to regulation of the privately owned cable television company. Community Development Fund – used to account for funds received under Title I of the Housing and Community Development Act of 1974. Special Service District Funds – used to account for the operations of Special Service Districts. Revenues are received from each district’s property owners and are used to provide additional services, primarily snow removal, within each District. 121 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 130 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 17 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 2015 2014 Assets Cash and investments $1,468,732 $ - $276,957 $1,745,689 $1,787,117 Accrued interest receivable 3,355 - 525 3,880 3,523 Due from other governments - 86,527 - 86,527 59,970 Accounts receivable 167,556 - - 167,556 165,030 Special assessments receivable: Delinquent - - 3,418 3,418 2,341 Deferred - - 171,952 171,952 198,208 Loans receivable - noncurrent - 431,543 - 431,543 426,165 Total assets $1,639,643 $518,070 $452,852 $2,610,565 $2,642,354 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $897 $ - $3,801 $4,698 $11,370 Salaries payable 20,898 - - 20,898 19,132 Due to other governments 10 4,503 1,106 5,619 938 Due to other funds - 64,580 - 64,580 44,004 Total liabilities 21,805 69,083 4,907 95,795 75,444 Deferred inflows of resources: Unavailable revenue - 26,890 174,264 201,154 221,613 Total deferred inflows of resources 0 26,890 174,264 201,154 221,613 Fund balance: Nonspendable - 431,543 - 431,543 426,165 Restricted 567,287 - - 567,287 618,334 Committed 394,419 - - 394,419 483,590 Assigned 656,132 - 273,681 929,813 823,642 Unassigned - (9,446) - (9,446) (6,434) Total fund balance 1,617,838 422,097 273,681 2,313,616 2,345,297 Total liabilities, deferred inflows of resources, and fund balance $1,639,643 $518,070 $452,852 $2,610,565 $2,642,354 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts 122 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 131 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES,Schedule 18 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 Revenues: Franchise taxes $669,796 $ - $ - $669,796 $650,355 Intergovernmental - other - 86,560 - 86,560 130,686 Charges for services - - 25,448 25,448 241 Special assessments - - 198,119 198,119 202,941 Interest on investments 6,903 311 1,280 8,494 14,445 Miscellaneous 41,059 - 1,435 42,494 3,453 Total revenues 717,758 86,871 226,282 1,030,911 1,002,121 Expenditures: Current: Public information: Personal services 439,067 - - 439,067 404,546 Supplies 21,873 - - 21,873 13,825 Other services and charges 100,312 - - 100,312 43,970 Housing and maintenance: Personal services - 4,918 - 4,918 6,410 Other services and charges - 79,587 - 79,587 124,124 Social and economic development: Supplies - - 5,367 5,367 2,318 Other services and charges - - 264,800 264,800 203,601 Capital outlay: Public information 12,162 - - 12,162 - Total expenditures 573,414 84,505 270,167 928,086 798,794 Revenues over (under) expenditures 144,344 2,366 (43,885) 102,825 203,327 Other financing sources (uses): Transfers out (134,506) - - (134,506) (159,506) Net change in fund balance 9,838 2,366 (43,885) (31,681) 43,821 Fund balance - January 1 1,608,000 419,731 317,566 2,345,297 2,301,476 Fund balance - December 31 $1,617,838 $422,097 $273,681 $2,313,616 $2,345,297 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts 123 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 132 - This page intentionally left blank - 124 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 133 NONMAJOR CAPITAL PROJECT FUNDS Fire Station Bonds Fund – used to account for the financing of land acquisition and construction of two new fire stations. Revenues will be provided from other City funds and property tax levies. Park Improvement Fund – used to account for the financing of land acquisition and development for park purposes. Revenues are provided by St. Louis Park School District contribution, interest earnings, rent, sale of property and a property tax levy. Pavement Management Fund – used to account for the financing of street rehabilitation. Revenues are provided by a franchise fee and transfers from the Sanitary Sewer Utility and Water Utility Funds. Police and Fire Pensions Fund – used to account for the funds received by the Police and Fire department for pension refunds. These funds must be used for specific police and fire purposes. 125 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 134 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 19 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions 2015 2014 Assets Cash and investments $4,253,650 $1,500,756 $2,846,303 $8,600,709 $7,742,748 Accrued interest receivable 8,900 6,874 6,570 22,344 18,325 Accounts receivable - 595,702 - 595,702 401,188 Special assessments - delinquent - - - - 166 Total assets $4,262,550 $2,103,332 $2,852,873 $9,218,755 $8,162,427 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $132,220 $ - $15,213 $147,433 $31,533 Due to other governments - - - - 103 Contracts payable 38,800 64,154 - 102,954 78,969 Unearned revenue 400,000 - - 400,000 200,000 Total liabilities 571,020 64,154 15,213 650,387 310,605 Fund balance: Restricted 43,920 - 2,837,660 2,881,580 3,180,914 Assigned 3,647,610 2,039,178 - 5,686,788 4,670,908 Total fund balance 3,691,530 2,039,178 2,837,660 8,568,368 7,851,822 Total liabilities, deferred inflows of resources, and fund balance $4,262,550 $2,103,332 $2,852,873 $9,218,755 $8,162,427 Totals Nonmajor Capital Project Funds 126 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 135 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES,Schedule 20 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 4040 Fire Station Bonds 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions Revenues:2015 2014 Taxes: Property taxes $ - $810,000 $ - $ - $810,000 $810,000 Franchise - - 2,245,936 - 2,245,936 1,617,858 Intergovernmental - 94,702 - - 94,702 44,702 Charges for services - 9,000 - - 9,000 9,766 Special assessments - - - - - 1,435 Investment income - 17,996 7,785 13,308 39,089 77,482 Miscellaneous - 719,353 - - 719,353 584,651 Total revenues 0 1,651,051 2,253,721 13,308 3,918,080 3,145,894 Expenditures: Current: Public safety 2,707 - - 10,778 13,485 81,539 Engineering - - 37,504 - 37,504 202,752 Operations and recreation - 555,308 - - 555,308 1,130,273 Capital outlay: Public safety 38,195 - - 304,883 343,078 16,901 Operations and recreation - 988,759 - - 988,759 337,505 Total expenditures 40,902 1,544,067 37,504 315,661 1,938,134 1,768,970 Revenues over (under) expenditures (40,902) 106,984 2,216,217 (302,353) 1,979,946 1,376,924 Other financing sources (uses): Transfers in 40,902 - 750,000 - 790,902 82,446 Transfers out - - (2,013,401) (40,901) (2,054,302) (2,293,713) Total other financing sources (uses)40,902 0 (1,263,401) (40,901) (1,263,400) (2,211,267) Net change in fund balance 0 106,984 952,816 (343,254) 716,546 (834,343) Fund balance - January 1 - 3,584,546 1,086,362 3,180,914 7,851,822 8,686,165 Fund balance - December 31 $0 $3,691,530 $2,039,178 $2,837,660 $8,568,368 $7,851,822 Totals Nonmajor Capital Project Funds 127 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 136 - This page intentionally left blank - 128 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 137 MAJOR DEBT SERVICE FUNDS 3460 – 2010A General Obligation Bond 3465 – 2012A General Obligation HIA Bonds 3470 – 2010B General Obligation Bond 3480 – 2010D General Obligation Fire Station Bond 3490 – 2014A General Obligation Bonds 3600 - 2000 General Obligaiton Bond Reserve 3615 – 2010C General Obligation Bond 3620 – 2010C General Obligation Bond Reserve Fund 3870 - 2005A General Obligation Bond 3875 – Hoigaard’s 2010 A & B TIF Notes 3890 - 2008B General Obligation Tax Increment Bond 129 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 138 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR DEBT SERVICE FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 3470 2010B General Obligation Bond 3480 2010D General Obligation Fire Station Bond 3490 2014A General Obligation Bonds Assets Cash and investments $5,394 $856,559 $50,453 Accrued interest receivable 11 1,258 116 Due from other governments - 84,886 - Loans receivable - current - - - Loans receivable - noncurrent - - - Total assets $5,405 $942,703 $50,569 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $3,000 $ - Due to other governments - - - Deposits payable - - - Unearned revenue - 14,148 - Total liabilities 0 17,148 0 Deferred inflows of resources: Unavailable revenue - - - Total deferred inflows of resources 0 0 0 Fund balance: Restricted 5,405 925,555 50,569 Total fund balance 5,405 925,555 50,569 Total liabilities, deferred inflows of resources, and fund balance $5,405 $942,703 $50,569 130 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 139 Statement 21 3600 2000 General Obligation Bond Reserve 3615 2010C General Obligation Bond 3620 2010C General Obligation Bond Reserve 3870 2005A General Obligation Bond 2015 2014 $121,105 $70,150 $152,913 $706,916 $1,963,490 $1,976,573 - - - 1,248 2,633 2,973 - - - - 84,886 86,384 - 40,000 - - 40,000 35,000 - 1,600,000 - - 1,600,000 1,640,000 $121,105 $1,710,150 $152,913 $708,164 $3,691,009 $3,740,930 $ - $ - $ - $ - $3,000 $ - - - - - - 171 - - 152,618 - 152,618 168,636 - - - - 14,148 14,397 0 0 152,618 0 169,766 183,204 - 1,640,000 - - 1,640,000 1,675,000 0 1,640,000 0 0 1,640,000 1,675,000 121,105 70,150 295 708,164 1,881,243 1,882,726 121,105 70,150 295 708,164 1,881,243 1,882,726 $121,105 $1,710,150 $152,913 $708,164 $3,691,009 $3,740,930 Totals Debt Service Funds 131 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 140 - This page intentionally left blank - 132 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 141 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 22 EXPENDITURES AND CHANGES IN FUND BALANCE Page 1 of 2 MAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 3460 2010A General Obligation Bond 3465 2012A General Obligation HIA Bonds 3470 2010B General Obligation Bond 3480 2010D General Obligation Fire Station Bond Revenues: Property taxes $ - $ - $ - $927,461 Intergovernmental - - - 169,567 Interest on investments - - 22 898 Miscellaneous - other - - - - Total revenues 0 0 22 1,097,926 Expenditures: Social and economic development: Developer assistance - - - - Debt service: Principal 115,000 55,000 - 535,000 Interest and other 132,111 34,194 722 530,110 Fiscal agent fees 450 857 140 450 Total expenditures 247,561 90,051 862 1,065,560 Revenues over (under) expenditures (247,561)(90,051)(840)32,366 Other financing sources (uses): Transfers in 247,561 90,051 - - Transfers out - - - - Bonds issued - - - - Total other financing sources (uses)247,561 90,051 0 0 Net change in fund balance 0 0 (840)32,366 Fund balance - January 1 - - 6,245 893,189 Fund balance - December 31 $0 $0 $5,405 $925,555 133 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 142 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE MAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 3490 2014A General Obligation Bonds 3600 2000 General Obligation Bond Reserve 3615 2010C General Obligation Bond 3620 2010C General Obligation Bond Reserve Revenues: Property taxes $ - $ - $ - $ - Intergovernmental - - - - Interest on investments 390 91 36 110 Miscellaneous - other - - 121,228 - Total revenues 390 91 121,264 110 Expenditures: Social and economic development: Developer assistance - - - - Debt service: Principal - - 35,000 - Interest and other 63,040 - 82,038 - Fiscal agent fees 293 - 450 - Total expenditures 63,333 0 117,488 0 Revenues over (under) expenditures (62,943)91 3,776 110 Other financing sources (uses): Transfers in - - 91 - Transfers out - (91) - - Bonds issued - - - - Total other financing sources (uses)0 (91)91 0 Net change in fund balance (62,943)0 3,867 110 Fund balance - January 1 113,512 121,105 66,283 185 Fund balance (deficit) - December 31 $50,569 $121,105 $70,150 $295 134 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 143 Statement 22 Page 2 of 2 3870 2005A General Obligation Bond 3875 Hoigaard's 2010 A & B TIF Notes 3890 2008B General Obligation Tax Increment Bond Interfund Eliminations 2015 2014 $495,700 $ - $ - $ - $1,423,161 $1,422,477 - - - - 169,567 173,109 875 - - - 2,422 11,920 - - - - 121,228 116,513 496,575 0 0 0 1,716,378 1,724,019 - 487,802 - - 487,802 453,591 440,000 - 355,000 - 1,535,000 1,970,000 30,618 - 186,658 - 1,059,491 1,038,915 - - - - 2,640 2,040 470,618 487,802 541,658 0 3,084,933 3,464,546 25,957 (487,802)(541,658)0 (1,368,555) (1,740,527) - 487,802 541,658 (91) 1,367,072 1,327,137 - - - 91 - (227,039) - - - - - 113,512 0 487,802 541,658 0 1,367,072 1,213,610 25,957 0 0 0 (1,483)(526,917) 682,207 - - - 1,882,726 2,409,643 $708,164 $0 $0 $0 $1,881,243 $1,882,726 Totals Debt Service Funds 135 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 144 - This page intentionally left blank - 136 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 145 MAJOR REDEVELOPMENT DISTRICT FUNDS 4775 – Eliot Park TIF 4780 – Duke West End TIF 4785 – Ellipse TIF District 4798 – HRA Levy 4865 – HSTI 4870 – Victoria Ponds 4875 – Park Center Housing 4880 – CSM TIF District 4900 – Mill City TIF District 4920 – Park Commons TIF District 4930 – Edgewood TIF District 4940 – Elmwood Village 4950 – Wolfe Lake TIF District 4965 – Aquila Commons 4980 – Highway 7 Business Center 4985 – Hard Coat TIF District 4955 – Shoreham TIF District 4770 – Excelsior Blvd TIF District 137 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 146 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR REDEVELOPMENT DISTRICT FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 4780 Duke West End TIF 4775 Eliot Park TIF 4785 Ellipse TIF District 4798 HRA Levy Assets Cash and investments $595,123 $30 $234,644 $944,946 Accrued interest receivable 768 - 204 1,468 Accounts receivable 1,224 - - - Interfund loan receivable - - - - Taxes receivable - unremitted 8,848 - - 2,632 Taxes receivable - delinquent - - - 9,273 Loans receivable - noncurrent - - - - Total assets $605,963 $30 $234,848 $958,319 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $1,643 $ - Due to other governments 2,415 532 1,257 - Interfund loan payable 496,112 18,898 203,089 4,606,721 Total liabilities 498,527 19,430 205,989 4,606,721 Deferred inflows of resources: Unavailable revenue - - - 9,273 Total deferred inflows of resources 0 0 0 9,273 Fund balance (deficit): Restricted 107,436 - 28,859 - Unassigned - (19,400) - (3,657,675) Total fund balance (deficit)107,436 (19,400)28,859 (3,657,675) Total liabilities, deferred inflows of resources, and fund balance $605,963 $30 $234,848 $958,319 138 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 147 Statement 23 Page 1 of 2 4865 HSTI 4870 Victoria Ponds 4875 Park Center Housing 4880 CSM TIF District 4900 Mill City TIF District 4920 Park Commons TIF District $417 $506,267 $199,583 $570,054 $302,694 $870,917 - 1,159 557 1,007 367 474 - - - - - - - 119,600 - - - - - - - 900 - 8,949 - - - - - - - - 706,116 - - - $417 $627,026 $906,256 $571,961 $303,061 $880,340 $ - $ - $ - $ - $ - $ - - - 732 1,479 - 6,403 - - - - - - 0 0 732 1,479 0 6,403 - - 63,110 - - - 0 0 63,110 0 0 0 417 627,026 842,414 570,482 303,061 873,937 - - - - - - 417 627,026 842,414 570,482 303,061 873,937 $417 $627,026 $906,256 $571,961 $303,061 $880,340 139 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 148 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR REDEVELOPMENT DISTRICT FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 4930 Edgewood TIF District 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons Assets Cash and investments $835 $81,193 $84,394 $96,344 Accrued interest receivable - 1,600 105 104 Accounts receivable - 468 - - Interfund loan receivable - - - - Taxes receivable - unremitted - 5,257 - - Taxes receivable - delinquent - - - - Loans receivable - noncurrent - - - - Total assets $835 $88,518 $84,499 $96,448 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $998 $ - $ - Due to other governments 624 5,206 728 1,136 Interfund loan payable - 2,442,417 - - Total liabilities 624 2,448,621 728 1,136 Deferred inflows of resources: Unavailable revenue - - - - Total deferred inflows of resources 0 0 0 0 Fund balance (deficit): Restricted 211 - 83,771 95,312 Unassigned - (2,360,103) - - Total fund balance (deficit)211 (2,360,103)83,771 95,312 Total liabilities, deferred inflows of resources, and fund balance $835 $88,518 $84,499 $96,448 140 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 149 Statement 23 Page 2 of 2 4980 Highway 7 Business Center 4985 Hard Coat TIF District 4955 Shoreham TIF District 4770 Excelsior Blvd TIF District Interfund Eliminations 2015 2014 $55,481 $1,384 $ - $ - $ - $4,544,306 $4,001,485 34 17 - - - 7,864 9,825 - - - - - 1,692 - - - - - (119,600) - - - - - - - 26,586 36,872 - - - - - 9,273 10,821 - - - - - 706,116 693,494 $55,515 $1,401 $0 $0 ($119,600) $5,295,837 $4,752,497 $ - $83 $ - $ - $ - $2,724 $9,886 771 - - - - 21,283 24,568 - 128,686 14,539 13,782 (119,600) 7,804,644 8,009,460 771 128,769 14,539 13,782 (119,600) 7,828,651 8,043,914 - - - - - 72,383 61,309 0 0 0 0 0 72,383 61,309 54,744 - - - - 3,587,670 3,528,387 - (127,368) (14,539) (13,782) - (6,192,867) (6,881,113) 54,744 (127,368) (14,539) (13,782)0 (2,605,197) (3,352,726) $55,515 $1,401 $0 $0 ($119,600) $5,295,837 $4,752,497 Totals Redevelopment District Funds 141 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 150 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE MAJOR REDEVELOPMENT DISTRICT FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 4780 Duke West End TIF 4775 Eliot Park TIF 4785 Ellipse TIF District 4798 HRA Levy Revenues: Property taxes $ - $ - $ - $941,360 Tax increments 1,147,481 - 446,450 - Interest on investments 192 - 6 - Total revenues 1,147,673 0 446,456 941,360 Expenditures: Current: Social and economic development 591,163 6,657 361,610 149,391 Revenues over (under) expenditures 556,510 (6,657)84,846 791,969 Other financing sources (uses): Transfers in - - - - Transfers out (541,658) - - - Total other financing sources (uses)(541,658)0 0 0 Net change in fund balance 14,852 (6,657)84,846 791,969 Fund balance (deficit) - January 1 92,584 (12,743) (55,987) (4,449,644) Fund balance (deficit) - December 31 $107,436 ($19,400) $28,859 ($3,657,675) 142 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 151 Statement 24 Page 1 of 2 4865 HSTI 4870 Victoria Ponds 4875 Park Center Housing 4880 CSM TIF District 4900 Mill City TIF District 4920 Park Commons TIF District 4930 Edgewood TIF District $ - $ - $ - $ - $ - $ - $ - - - 125,419 402,508 437,107 2,084,695 58,711 448 6,951 1,010 1,625 297 - - 448 6,951 126,429 404,133 437,404 2,084,695 58,711 202,787 1,550 5,848 369,981 404,764 1,935,122 57,921 (202,339) 5,401 120,581 34,152 32,640 149,573 790 - - - - - - - - - (125,400) - - - - 0 0 (125,400)0000 (202,339) 5,401 (4,819) 34,152 32,640 149,573 790 202,756 621,625 847,233 536,330 270,421 724,364 (579) $417 $627,026 $842,414 $570,482 $303,061 $873,937 $211 143 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 152 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE MAJOR REDEVELOPMENT DISTRICT FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons Revenues: Property taxes $ - $ - $ - Tax increments 1,616,069 120,737 158,683 Interest on investments 686 92 50 Total revenues 1,616,755 120,829 158,733 Expenditures: Current: Social and economic development 563,086 123,000 154,838 Revenues over (under) expenditures 1,053,669 (2,171)3,895 Other financing sources (uses): Transfers in - - - Transfers out (1,187,802) - - Total other financing sources (uses)(1,187,802)0 0 Net change in fund balance (134,133)(2,171)3,895 Fund balance (deficit) - January 1 (2,225,970)85,942 91,417 Fund balance (deficit) - December 31 ($2,360,103)$83,771 $95,312 144 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 153 Statement 24 Page 2 of 2 4980 Highway 7 Business Center 4985 Hard Coat TIF District 4955 Shoreham TIF District 4770 Excelsior Blvd TIF District 2015 2014 $ - $ - $ - $ - $941,360 $927,094 146,915 19,176 - - 6,763,951 7,380,995 7 21 - - 11,385 31,126 146,922 19,197 0 0 7,716,696 8,339,215 147,893 10,375 14,539 13,782 5,114,307 5,422,969 (971)8,822 (14,539)(13,782) 2,602,389 2,916,246 - - - - - 47,356 - - - - (1,854,860) (8,610,440) 0000(1,854,860) (8,563,084) (971)8,822 (14,539)(13,782)747,529 (5,646,838) 55,715 (136,190) - - (3,352,726) 2,294,112 $54,744 ($127,368)($14,539)($13,782) ($2,605,197) ($3,352,726) Totals Redevelopment District Funds 145 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 154 - This page intentionally left blank - 146 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 155 INTERNAL SERVICE FUNDS The City has three Internal Service Funds to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost reimbursement basis. The City’s internal service funds account for employee flex spending, uninsured loss, and capital replacement. 147 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 156 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF NET POSITION Statement 25 INTERNAL SERVICE FUNDS December 31, 2015 6100 Employee Administrative 6200 Uninsured Loss 6400 Capital Replacement Total Assets: Current assets: Cash and investments $844,330 $675,788 $359,727 $1,879,845 Accrued interest receivable 3,507 1,641 1,445 6,593 Accounts receivable - - 25,720 25,720 Due from other governments - - 210 210 Prepaid items 77,665 75,871 46,691 200,227 Deposits receivable 31,000 - - 31,000 Total current assets 956,502 753,300 433,793 2,143,595 Noncurrent assets: Capital assets, at cost: Land - - 818,094 818,094 Building and structures - - 8,521,883 8,521,883 Improvements other than buildings 888,623 888,623 Infrastructure - - 1,313,801 1,313,801 Machinery, furniture and equipment - - 7,008,412 7,008,412 Fleet - - 7,912,923 7,912,923 Construction in progress - - 895,637 895,637 Total capital assets, at cost 0 0 27,359,373 27,359,373 Less: accumulated depreciation - - (9,497,915) (9,497,915) Net capital assets 0 0 17,861,458 17,861,458 Total assets 956,502 753,300 18,295,251 20,005,053 Deferred outflows of resources - pension related 3,743,716 - - 3,743,716 Liabilities: Current liabilities: Accounts payable 131,232 14,626 210,761 356,619 Accrued flex spending 17,337 - - 17,337 Due to other governments 6,139 - 9,999 16,138 Contracts payable - - 3,805 3,805 Compensated absences payable 2,626,531 - - 2,626,531 Capial lease payable - - 8,100 8,100 Total current liabilities 2,781,239 14,626 232,665 3,028,530 Noncurrent liabilities: Compensated absences payable 1,125,656 - - 1,125,656 Other postemployment benefits payable 2,596,202 - - 2,596,202 Capial lease payable - - 16,875 16,875 Net pension liability 19,874,838 - - 19,874,838 Total noncurrent liabilities 23,596,696 0 16,875 23,613,571 Total liabilities 26,377,935 14,626 249,540 26,642,101 Deferred inflows of resources - pension related 2,469,090 - - 2,469,090 Net position: Net investment in capital assets - - 17,861,458 17,861,458 Unrestricted (24,146,807)738,674 184,253 (23,223,880) Total net position ($24,146,807)$738,674 $18,045,711 ($5,362,422) 148 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 157 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES AND Statement 26 CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For The Year Ended December 31, 2015 6100 Employee Administrative 6200 Uninsured Loss 6400 Capital Replacement Total Operating revenues: Charges for services $ - $ - $1,041,966 $1,041,966 Other 207,671 242,499 1,260 451,430 Total operating revenues 207,671 242,499 1,043,226 1,493,396 Operating expenses: Personal services 1,647,954 22,490 - 1,670,444 Supplies - 302 412,291 412,593 Professional services 23,760 - 1,358,305 1,382,065 Insurance - 256,810 - 256,810 Depreciation - - 1,757,465 1,757,465 Other 97,582 295 511,777 609,654 Total operating expenses 1,769,296 279,897 4,039,838 6,089,031 Operating income (loss)(1,561,625)(37,398) (2,996,612) (4,595,635) Nonoperating revenues (expenses): Investment income 9,151 2,910 9,600 21,661 Property taxes 200,000 - 1,442,700 1,642,700 Intergovernmental revenue 81,743 - 512,466 594,209 Net loss on disposal of assets - - (45,300)(45,300) Total nonoperating revenues (expenses)290,894 2,910 1,919,466 2,213,270 Income (loss) before transfers (1,270,731)(34,488) (1,077,146) (2,382,365) Transfers in - - 769,900 769,900 Transfers out - - (910,442)(910,442) Total transfers 0 0 (140,542)(140,542) Change in net position (1,270,731)(34,488) (1,217,688) (2,522,907) Net position - January 1, as previously reported (4,905,713)773,162 19,181,097 15,048,546 Prior period adjustment (17,970,363) - 82,302 (17,888,061) Net position - January 1, as restated (22,876,076)773,162 19,263,399 (2,839,515) Net position - December 31 ($24,146,807) $738,674 $18,045,711 ($5,362,422) 149 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 158 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS Statement 27 INTERNAL SERVICE FUNDS Page 1 of 2 For The Year Ended December 31, 2015 6100 Employee Administrative 6200 Uninsured Loss 6400 Capital Replacement Total Cash flows from operating activities: Receipts from interfund services provided $ - $ - $1,016,615 $1,016,615 Other receipts 207,671 242,499 1,260 451,430 Payments to suppliers (10,910) (287,617) (2,324,565) (2,623,092) Payments to employees (538,427) (22,490) - (560,917) Net cash flows provided by (used in) operating activities (341,666) (67,608) (1,306,690) (1,715,964) Cash flows from noncapital financing activities: Transfers in - - 650,000 650,000 Transfers out - - (910,442) (910,442) Property taxes 200,000 - 1,795,085 1,995,085 Intergovernmental receipts 81,743 - 512,466 594,209 Net cash flows provided by (used in) noncapital financing activities 281,743 0 2,047,109 2,328,852 Cash flows from capital and related financing activities: Transfers in - - 119,900 119,900 Acquisition and construction of capital assets - - (2,497,745) (2,497,745) Proceeds from sale of assets - - 184,425 184,425 Principal paid on capital lease - - (8,100)(8,100) Net cash flows provided by (used in) capital and related financing activities 0 0 (2,201,520) (2,201,520) Cash flows from investing activities: Investment income 8,884 2,783 8,164 19,831 Net increase (decrease) in cash and cash equivalents (51,039) (64,825) (1,452,937) (1,568,801) Cash and cash equivalents - January 1 895,369 740,613 1,812,664 3,448,646 Cash and cash equivalents - December 31 $844,330 $675,788 $359,727 $1,879,845 CITY OF ST. LOUIS PARK, MINNESOTA 150 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 159 COMBINING STATEMENT OF CASH FLOWS Statement 27 INTERNAL SERVICE FUNDS Page 2 of 2 For The Year Ended December 31, 2015 6100 Employee Administrative 6200 Uninsured Loss 6400 Capital Replacement Total Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)($1,561,625) ($37,398) ($2,996,612) ($4,595,635) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation - - 1,757,465 1,757,465 Changes in assets and liabilities: Decrease (increase) in: Accounts receivable - - (25,351) (25,351) Prepaid items (2,243)(820) (33,770) (36,833) Deferred outflows of resources (2,770,347) - - (2,770,347) Increase (decrease) in: Accounts payable 112,675 (29,390)(8,422)74,863 Contracts payable - - - - Accrued salaries payable (5,080) - - (5,080) Accrued flex spending (16,740) - - (16,740) Compensated absences payable 49,734 - - 49,734 Other postemployment benefits 451,764 - - 451,764 Net pension liability 931,106 - - 931,106 Deferred inflows of resources 2,469,090 - - 2,469,090 Total adjustments 1,219,959 (30,210) 1,689,922 2,879,671 Net cash provided by (used in) operating activities ($341,666) ($67,608) ($1,306,690) ($1,715,964) Supplemental schedule of noncash capital and related financing activities Disposal of capital assets $ - $ - $888,968 $888,968 Assets contributed from government $ - $ - $72,400 $72,400 151 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 160 - This page intentionally left blank - 152 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 161 GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund. 153 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 162 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET Statement 28 GENERAL FUND December 31, 2015 With Comparative Totals For December 31, 2014 2015 2014 Assets Cash and investments $20,600,451 $19,235,324 Accrued interest receivable 37,596 31,318 Due from other governments 320,711 308,195 Accounts receivable 532,083 211,229 Taxes receivable - unremitted 79,718 15,620 Taxes receivable - delinquent 261,414 291,372 Prepaid items 63,765 48,552 Inventory 502,809 349,351 Total assets $22,398,547 $20,490,961 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $1,364,665 $572,847 Salaries payable 1,439,254 1,288,119 Due to other governments 39,041 74,952 Deposits payable 1,300,229 1,334,456 Unearned revenue 960,918 715,639 Total liabilities 5,104,107 3,986,013 Deferred inflows of resources: Unavailable revenue 263,304 342,211 Total deferred inflows of resources 263,304 342,211 Fund balance: Nonspendable 566,574 397,873 Restricted 464,469 492,223 Assigned 714,164 696,293 Unassigned 15,285,929 14,576,348 Total fund balance 17,031,136 16,162,737 Total liabilities, deferred inflows of resources, and fund balance $22,398,547 $20,490,961 154 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 163 CITY OF ST. LOUIS PARK, MINNESOTA SUMMARY FINANCIAL REPORT Statement 29 SCHEDULE OF REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS For The Year Ended December 31, 2015 With Comparative Amounts For The Year Ended December 31, 2014 2015 2014 Percent Increase (Decrease) Revenues: Property taxes $26,598,373 $24,361,524 9.2% Tax increments 6,763,951 7,380,995 (8.4%) Franchise taxes 2,915,732 2,268,213 28.5% License and permits 4,312,702 3,413,683 26.3% Intergovernmental 6,017,025 13,216,055 (54.5%) Charges for services 3,608,933 3,476,264 3.8% Fines and forfeits 263,951 369,546 (28.6%) Special assessments 1,238,873 1,268,539 (2.3%) Interest on investments 199,747 386,263 (48.3%) Miscellaneous 3,051,946 2,577,300 18.4% Total revenues 54,971,233 58,718,382 (6.4%) Per capita 1,137 1,238 Expenditures: Current: General government 7,813,046 7,376,380 5.9% Public safety 14,025,463 13,239,729 5.9% Operations and recreation 9,710,604 10,500,789 (7.5%) Engineering 10,068,447 20,963,383 (52.0%) Public information 561,252 462,341 21.4% Housing and rehabilitation 538,411 875,225 (38.5%) Housing maintenance 84,505 130,534 (35.3%) Social economic development 8,872,479 7,928,905 11.9% Capital outlay: General government 44,364 - 0.0% Public safety 343,078 16,901 1929.9% Operations and recreation 988,759 337,505 193.0% Engineering 2,056,701 1,845,182 11.5% Public information 12,162 - 0.0% Social and economic development 41,800 72,400 (42.3%) Debt service: Principal 1,612,827 1,970,000 (18.1%) Interest 1,210,971 1,138,100 6.4% Bond issuance costs - 52,393 (100.0%) Fiscal agent fees 2,640 2,040 29.4% Total expenditures $57,987,509 $66,911,807 (13.3%) Per capita 1,199 1,411 Total bonds payable 26,620,000 28,155,000 (5.5%) Per capita 551 594 General Fund balance 17,031,136 16,162,737 5.4% Per capita 352 341 The purpose of this report is to provide a summary of financial information concerning the City of St. Louis Park to interested citizens. The complete financial statements may be examined at City Hall, 5005 Minnetonka Blvd, St. Louis Park, Minnesota 55416-2216. Questions about this report should be directed to the City's, Controller at (952) 924-2500. Total Governmental Funds 155 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 164 - This page intentionally left blank - 156 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 165 III. STATISTICAL SECTION (UNAUDITED) 157 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 166 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2006 2007 2008 2009 Governmental activities Net investment in capital assets $56,843,474 $74,883,912 $76,600,774 $89,252,994 Restricted 9,340,767 13,098,282 - 20,075,976 Unrestricted 60,462,334 46,155,656 65,908,328 40,508,755 Total governmental activities net position $126,646,575 $134,137,850 $142,509,102 $149,837,725 Business-type activities Net investment in capital assets $25,629,760 $25,644,428 $27,559,942 $23,977,469 Unrestricted 7,514,603 7,499,935 6,414,768 6,903,776 Total business-type activities net position $33,144,363 $33,144,363 $33,974,710 $30,881,245 Total primary government Net investment in capital assets $82,473,234 $100,528,340 $104,160,716 $113,230,463 Restricted 9,340,767 13,098,282 - 20,075,976 Unrestricted 67,976,937 53,655,591 72,323,096 47,412,531 Total primary government $159,790,938 $167,282,213 $176,483,812 $180,718,970 Note: GASB 65 was implemented in 2013. Net position was restated for 2012 to reflect the expenses of bond issuance costs in the year of issuance. Net position for years prior to 2012 was not restated. GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. Fiscal Year 158 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 167 Table 1 2010 2011 2012 2013 2014 2015 $94,326,512 $99,835,484 $95,020,700 $96,480,493 $94,891,625 $114,147,589 21,692,426 17,695,996 18,941,172 13,560,965 10,971,995 10,608,709 40,581,189 43,929,086 46,413,200 45,688,600 49,971,778 13,805,677 $156,600,127 $161,460,566 $160,375,072 $155,730,058 $155,835,398 $138,561,975 $21,717,923 $22,347,266 $22,906,086 $19,127,309 $22,818,382 $22,753,326 8,433,915 8,524,086 9,829,024 11,540,303 4,783,696 4,620,302 $30,151,838 $30,871,352 $32,735,110 $30,667,612 $27,602,078 $27,373,628 $116,044,435 $122,182,750 $117,926,786 $115,607,802 $117,710,007 $136,900,915 21,692,426 17,695,996 18,941,172 13,560,965 10,971,995 10,608,709 49,015,104 52,453,172 56,001,992 57,228,903 54,755,474 18,425,979 $186,751,965 $192,331,918 $192,869,950 $186,397,670 $183,437,476 $165,935,603 Fiscal Year 159 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 168 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2006 2007 2008 2009 Expenses Governmental activities General government $7,155,916 $8,251,341 $8,216,816 $8,167,355 Public safety 11,695,841 10,721,803 11,867,403 12,138,185 Public works 6,895,260 5,979,789 6,904,217 6,915,541 Public information 231,124 404,074 425,829 457,872 Culture and recreation 6,399,633 6,916,001 7,352,406 7,456,215 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation 728,433 1,079,211 1,615,010 1,544,175 Housing maintenance 373,393 121,118 199,757 128,099 Social and economic development 9,784,543 5,910,149 5,494,634 6,321,623 General services 22,484 6,830 2,653 7,662 Interest on long-term debt 1,345,023 1,301,266 1,329,767 1,543,879 Total governmental activities expenses 44,631,650 40,691,582 43,408,492 44,680,606 Business-type activities Water 2,845,614 3,285,107 3,391,992 4,089,837 Sewer 4,268,952 4,199,659 4,485,386 4,228,680 Solid waste - - - - Refuse 2,029,302 2,019,595 2,135,677 2,125,540 Storm water 1,032,410 1,088,170 1,172,199 1,287,202 Wireless 402,683 1,151,751 315,664 151,708 Total business-type activities expenses 10,578,961 11,744,282 11,500,918 11,882,967 Total expenses $55,210,611 $52,435,864 $54,909,410 $56,563,573 Program revenues Governmental activities Charges for services General government $936,199 $978,058 $955,811 $888,246 Public safety 3,049,369 2,977,475 4,282,699 2,958,383 Public works 432,932 1,483,824 380,452 2,292,287 Public information - - - - Culture and recreation 1,886,153 2,409,625 2,121,505 2,083,015 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation 456,088 527,536 507,163 562,930 Housing maintenance - - - - Social and economic development 32,456 202,110 173,960 184,236 Interest on long-term debt - - - 318,134 Operating grants and contributions 7,703,241 3,908,485 3,581,092 2,664,563 Capital grants and contributions 6,290,881 2,113,560 2,822,683 2,131,755 Total governmental activities program revenue 20,787,319 14,600,673 14,825,365 14,083,549 Business-type activities Charges for services Water 2,968,926 3,461,301 3,584,384 4,294,962 Sewer 4,584,802 4,820,732 4,506,339 5,153,171 Solid waste - - - - Refuse 2,124,203 2,395,469 2,348,133 2,458,555 Storm water 1,169,915 1,473,746 1,529,180 1,699,557 Wireless 41,057 68,959 51,322 16,140 Operating grants and contributions 263,181 208,814 966,053 167,604 Capital grants and contributions 209,277 - 1,040,384 - Total business-type activities program revenue 11,361,361 12,429,021 14,025,795 13,789,989 Total program revenues $32,148,680 $27,029,694 $28,851,160 $27,873,538 Fiscal Year 160 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 169 Table 2 Page 1 of 2 2010 2011 2012 2013 2014 2015 $7,192,652 $7,247,716 $7,387,354 $10,085,905 $9,161,922 $10,712,749 12,256,272 12,535,793 13,264,220 13,365,297 13,954,604 15,336,854 19,446,758 7,513,833 - - - - 435,050 803,885 524,012 466,043 507,928 3,057,509 7,792,614 7,882,789 - - - - - - 15,209,548 13,487,238 13,318,552 9,996,885 - - 5,253,969 16,046,665 21,045,392 10,185,956 4,150,595 794,935 3,914,261 1,774,657 909,051 707,661 241,345 79,786 116,949 141,250 130,534 84,505 4,861,518 6,171,527 7,810,635 9,040,280 8,058,914 8,872,479 - - - - - - 1,453,555 1,695,758 1,245,294 1,295,298 1,185,975 1,233,107 57,830,359 44,726,022 54,726,242 65,702,633 68,272,872 60,187,705 3,904,801 3,839,592 3,890,860 5,747,116 4,609,579 4,684,190 4,193,191 4,572,869 4,593,166 5,272,646 4,885,748 5,333,887 2,116,949 2,319,099 2,562,985 3,614,118 2,813,587 2,917,214 - - - - - - 1,325,803 1,373,546 1,485,390 1,390,235 1,422,645 1,400,975 - - - - - - 11,540,744 12,105,106 12,532,401 16,024,115 13,731,559 14,336,266 $69,371,103 $56,831,128 $67,258,643 $81,726,748 $82,004,431 $74,523,971 $1,065,209 $1,059,527 $1,060,679 $1,024,253 $1,142,294 $1,185,881 2,898,634 2,917,525 3,344,449 3,109,813 3,477,244 4,237,819 601,890 315,163 - - - - - 200,000 - - - 10,000 1,959,556 2,111,348 2,438,841 - - - - - - 2,035,715 2,089,052 2,344,863 - - - 1,032 318,873 144,151 8,833 62,191 8,162 8,606 7,537 6,315 - - - - 241 - 588,757 316,935 281,002 250,015 224,252 256,557 - - - - - - 1,735,926 2,065,312 2,360,465 2,709,644 2,024,171 3,586,440 14,908,522 1,878,697 6,290,076 11,881,109 12,066,132 3,178,294 23,767,327 10,926,698 15,783,674 21,020,187 21,349,796 14,950,320 4,148,394 4,475,068 5,109,446 5,037,067 5,188,065 5,766,601 5,277,473 5,768,266 5,959,931 5,822,085 5,841,377 6,112,024 2,719,376 2,894,726 2,858,930 2,912,415 3,179,732 3,189,566 - - - - - - 1,829,792 1,904,587 1,977,663 2,054,915 2,246,201 2,472,134 - - - - - - 103,342 103,166 105,976 135,642 127,742 128,610 2,890 - - - - - 14,081,267 15,145,813 16,011,946 15,962,124 16,583,117 17,668,935 $37,848,594 $26,072,511 $31,795,620 $36,982,311 $37,932,913 $32,619,255 Fiscal Year 161 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 170 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2006 2007 2008 2009 Net (expenses) revenues Governmental activities ($23,844,331) ($26,090,909) ($28,583,127) ($30,597,057) Business-type activities 755,400 684,739 2,524,877 1,907,022 Total primary government ($23,088,931) ($25,406,170) ($26,058,250) ($28,690,035) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes $23,538,989 $26,163,519 $28,523,119 $29,512,631 Tax increment - - - - Franchise taxes 1,358,902 1,440,034 1,507,994 1,503,075 Grants and contributions not restricted to specific programs 932,634 825,327 519,850 153,108 Unrestricted investment earnings 2,881,818 4,139,689 2,133,858 1,452,176 Gain on sale of capital assets 128,344 378,075 1,842,601 91,149 Miscellaneous 474,054 341,335 470,230 11,229 Transfers 1,923,760 1,996,291 1,956,727 5,202,312 Total governmental activities expenses 31,238,501 35,284,270 36,954,379 37,925,680 Business-type activities: Unrestricted investment earnings 254,966 466,923 243,724 201,825 Miscellaneous 13,702 - 18,473 - Gain on sale of capital assets - - - - Transfers (1,923,760) (1,996,291) (1,956,727) (5,202,312) Total business-type activities expenses (1,655,092) (1,529,368) (1,694,530) (5,000,487) Total primary government $29,583,409 $33,754,902 $35,259,849 $32,925,193 Change in net position: Governmental activities $7,394,170 $9,193,361 $8,371,252 $7,328,623 Business-type activities (899,692) (844,629) 830,347 (3,093,465) Prior period adjustment (474,033) 143,969 - - Total primary government $6,020,445 $8,492,701 $9,201,599 $4,235,158 Note: GASB 65 was implemented in 2013. Governmental and business-type activities expenses were restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Expenses for years prior to 2012 were not restated. GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated. Fiscal Year 162 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 171 Table 2 Page 2 of 2 2010 2011 2012 2013 2014 2015 ($34,063,032) ($33,799,324) ($38,942,568) ($44,682,446) ($46,923,076) ($45,237,385) 2,540,523 3,040,707 3,479,545 (61,991) 2,851,558 3,332,669 ($31,522,509) ($30,758,617) ($35,463,023) ($44,744,437) ($44,071,518) ($41,904,716) $29,642,090 $23,527,322 $24,625,789 $26,963,176 $27,398,157 $28,209,567 - 7,222,976 6,446,389 6,647,729 7,380,995 6,763,951 1,497,178 1,894,714 1,954,557 2,211,569 2,268,213 2,915,732 151,624 156,325 46,422 45,266 504,035 557,671 629,094 1,048,395 663,978 138,899 407,753 221,408 34,453 51,686 60,416 69,237 464,629 577,248 950,231 2,300,478 2,183,685 2,199,629 2,609,539 2,985,997 3,358,921 2,457,867 1,660,035 1,761,927 5,995,095 3,620,449 36,263,591 38,659,763 37,641,271 40,037,432 47,028,416 45,852,023 88,991 136,674 113,260 (3,348) 78,003 59,330 - - - - - - - - - - - - (3,358,921) (2,457,867) (1,660,035) (1,761,927) (5,995,095) (3,620,449) (3,269,930) (2,321,193) (1,546,775) (1,765,275) (5,917,092) (3,561,119) $32,993,661 $36,338,570 $36,094,496 $38,272,157 $41,111,324 $42,290,904 $2,200,559 $4,860,439 ($1,301,297) ($4,645,014) $105,340 $614,638 (729,407) 719,514 1,932,770 (1,827,266) (3,065,534) (228,450) - - - - - - $1,471,152 $5,579,953 $631,473 ($6,472,280) ($2,960,194) $386,188 Fiscal Year 163 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 172 - This page intentionally left blank - 164 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 173 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS Fiscal Property Franchise Year Tax Tax Total 2006 $23,538,989 $1,358,902 $24,897,891 2007 26,163,519 1,440,034 27,603,553 2008 28,523,119 1,507,993 30,031,112 2009 28,523,119 1,503,075 30,026,194 2010 29,316,753 1,497,178 30,813,931 2011 30,853,927 1,894,714 32,748,641 2012 31,220,365 1,954,557 33,174,922 2013 33,610,905 2,211,569 35,822,474 2014 34,779,152 2,268,213 37,047,365 2015 34,973,518 2,915,732 37,889,250 165 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 174 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2006 2007 2008 2009 General fund Reserved $104,774 $13,719 $29,368 $572,206 Unreserved 9,847,341 10,100,187 11,697,232 7,326,638 Nonspendable - - - - Restricted - - - - Assigned - - - - Unassigned - - - - Total General fund $9,952,115 $10,113,906 $11,726,600 $7,898,844 All other governmental funds Reserved $9,276,305 $10,229,125 $10,610,175 $7,540,696 Unreserved, reported in: Special revenue funds 10,012,784 9,450,210 7,134,284 7,568,944 Capital projects funds 38,126,004 38,889,030 43,134,211 40,680,331 Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $57,415,093 $58,568,365 $60,878,670 $55,789,971 Note: The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2010, resulting in significant reclassification of the components of fund balance. Fiscal Year 166 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 175 Table 4 2010 2011 2012 2013 2014 2015 $ - $ - $ - $ - $ - - - - - - 80,664 71,192 70,450 256,251 397,873 566,574 425,967 427,718 458,448 498,922 492,223 464,469 124,503 139,483 690,242 691,171 696,293 758,084 10,399,401 10,799,829 10,757,776 14,342,422 14,576,348 15,242,009 $11,030,535 $11,438,222 $11,976,916 $15,788,766 $16,162,737 $17,031,136 $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - 11,570,382 11,391,114 14,059,579 13,889,317 7,122,122 9,720,053 32,296,848 18,298,167 17,196,417 11,769,076 9,210,361 8,933,285 466,792 511,610 459,160 467,682 483,590 481,009 25,151,409 26,518,495 25,583,093 22,925,072 35,032,602 33,372,241 (7,872,234) (5,042,828) (7,567,117) (7,020,483) (8,819,377) (6,551,326) $61,613,197 $51,676,558 $49,731,132 $42,030,664 $43,029,298 $45,955,262 Fiscal Year 167 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 176 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2006 2007 2008 2009 Revenues Taxes $19,416,738 $20,951,991 $21,563,302 $21,700,329 Tax increments 5,390,257 6,597,092 8,371,424 7,846,204 Franchise taxes - - - 1,503,075 Licenses and permits 2,934,270 2,946,749 4,072,753 2,786,032 Intergovernmental 12,943,457 3,737,619 2,424,119 3,867,795 Charges for services 2,394,509 276,693 324,512 4,228,179 Fines and forfeits 322,558 4,482,834 3,894,839 332,694 Special assessments 843,030 840,965 703,484 800,054 Investment earnings 2,717,490 3,851,542 1,990,854 1,358,170 Miscellaneous 2,648,354 3,038,836 3,591,212 2,615,062 Total revenues 49,610,663 46,724,321 46,936,499 47,037,594 Expenditures General government 5,985,314 6,642,231 6,642,295 6,472,022 Public safety 11,060,618 10,851,256 11,744,656 11,949,612 Public works 4,934,433 4,089,223 4,671,631 4,637,289 Public information 227,106 393,863 415,609 445,146 Culture and recreation 6,095,959 7,274,375 6,213,945 6,027,059 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation 739,391 688,062 1,621,099 1,550,264 Housing maintenance 373,393 121,118 199,757 128,099 Social and economic development 9,124,251 5,822,842 5,162,698 6,241,123 General services 22,484 6,830 2,653 7,662 Debt service: Principal 6,360,000 4,065,000 4,485,000 4,709,000 Interest 1,450,460 1,304,565 1,365,484 1,322,477 Other charges - - - - Capital outlay 4,567,251 5,804,342 9,998,748 10,314,002 Total expenditures 50,940,660 47,063,707 52,523,575 53,803,755 Excess (deficiency) of revenues over (under) expenditures (1,329,997) (339,386) (5,587,076) (6,766,161) Other financing sources (uses) Transfers in 6,432,713 8,383,989 11,129,934 9,939,299 Transfers out (5,480,804) (7,008,202) (9,233,136) (10,579,081) Principal paid on refunded bonds - - - - Refunding bonds issued - - - - Bonds issued - - 5,490,000 2,000,000 Proceeds from long term debt - - - - Premium on bonds issued - - - 10,202 Discount on bonds issued - - - - Redemption of refunded bonds - - - - Payments to refunded bond escrow agent - - - (6,045,000) Costs paid to refunded bond escrow agent - - - (199,425) Gain (loss) on sale of capital assets (220,584) 278,662 2,123,277 - Total other financing sources (uses)731,325 1,654,449 9,510,075 (4,874,005) Net change in fund balances ($598,672) $1,315,063 $3,922,999 ($11,640,166) Debt service as a percentage of noncapital expenditures 16.84%13.01%13.76%13.87% Fiscal Year 168 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 177 Table 5 2010 2011 2012 2013 2014 2015 $22,667,190 $23,336,537 $24,259,861 $25,658,762 $24,361,524 $26,598,373 6,649,563 7,222,976 6,446,389 6,647,729 7,380,995 6,763,951 1,497,178 1,894,714 1,954,557 2,211,569 2,268,213 2,915,732 2,359,716 2,797,700 3,241,813 3,069,090 3,413,683 4,312,702 11,879,601 3,105,500 2,983,191 13,887,247 13,216,055 6,017,025 4,051,971 3,897,710 3,547,900 3,052,789 3,476,264 3,608,933 401,610 281,047 341,356 311,882 369,546 263,951 1,550,110 985,912 2,233,715 1,505,568 1,268,539 1,238,873 612,098 949,510 622,450 123,306 386,263 199,747 3,050,231 2,285,608 2,188,262 2,216,820 2,577,300 3,051,946 54,719,268 46,757,214 47,819,494 58,684,762 58,718,382 54,971,233 6,219,751 6,415,318 6,503,965 7,162,588 7,376,380 7,813,046 11,771,246 11,885,577 12,571,356 12,435,341 13,239,729 14,025,463 15,624,494 4,437,939 - - - - 387,459 383,586 470,280 408,683 462,341 561,252 6,234,938 6,546,054 - - - - - - 13,955,142 10,083,541 10,450,789 9,710,604 - - 939,416 15,998,842 21,013,383 10,068,447 4,144,378 790,918 3,881,500 1,715,540 875,225 538,411 241,170 79,786 116,949 141,250 130,534 84,505 4,720,638 6,426,013 7,681,176 8,910,821 7,928,905 8,872,479 - - - - - - 2,170,000 5,420,000 1,285,000 3,275,000 1,970,000 1,612,827 1,170,286 1,170,549 1,235,118 1,298,016 1,138,100 1,210,971 453,288 1,040 46,435 3,895 54,433 2,640 6,306,083 14,295,009 3,930,528 2,089,798 2,271,988 3,486,864 59,443,731 57,851,789 52,616,865 63,523,315 66,911,807 57,987,509 (4,724,463) (11,094,575) (4,797,371) (4,838,553) (8,193,425) (3,016,276) 11,809,353 7,086,529 6,395,355 10,472,534 19,317,129 13,296,241 (14,974,391) (5,520,906) (5,580,044) (9,531,189) (15,241,005) (9,462,850) - - - - - - 3,615,000 - 1,290,000 - - - 16,130,000 - - - 5,070,000 - - - - - - 2,200,000 2,792 - - - 98,040 - - - - - - - (1,825,000) - - - - - 4,430,000 - - - - - (4,164,000) - - - - - 27,412 - 885,328 8,590 321,866 777,248 15,051,166 1,565,623 2,990,639 949,935 9,566,030 6,810,639 $10,326,703 ($9,528,952) ($1,806,732) ($3,888,618) $1,372,605 $3,794,363 6.29% 12.86% 5.18% 7.44% 4.81% 5.18% Fiscal Year 169 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 178 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) ASSESSED VALUE/TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS 2006 2007 2008 2009 Population 44,422 43,145 47,198 47,221 Real Property Total assessed/tax capacity value $62,912,413 $68,025,921 $68,006,453 $69,704,858 Less tax increment districts -(6,335,246) (7,644,566)(7,639,464) (8,276,993) Area-wide allocation (net)(1,186,353) (1,498,263)(1,498,263) (1,635,724) Net assessed/tax capacity value $55,390,814 $58,883,092 $58,868,726 $59,792,141 Estimated market value $5,232,595,500 $5,553,715,600 $5,552,520,000 $5,633,028,200 Personal Property Assessed/tax capacity value $489,063 $458,627 $458,627 $434,825 Estimated market value $24,807,500 $23,263,700 $23,263,700 $22,006,100 Total Real and Personal Property Assessed/tax capacity value $55,879,877 $59,341,719 $59,327,353 $60,226,966 Estimated market value $5,257,403,000 $5,576,979,300 $5,575,783,700 $5,655,034,300 Tax Capacity Rate 34.3%34.1%35.6%36.9% Fiscal Year 170 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 179 Table 6 2010 2011 2012 2013 2014 2015 45,250 44,665 45,505 46,362 47,411 47,502 $68,386,268 $65,611,006 $62,602,680 $61,348,576 $62,068,742 $65,599,841 (6,976,791) (6,379,980) (5,426,995) (5,587,609) (6,130,653) (5,894,025) (1,231,482) (2,775,483) (3,220,881) (2,940,678) (3,670,487) (3,879,478) $60,177,995 $56,455,543 $53,954,804 $52,820,289 $52,267,602 $55,826,338 $5,550,563,700 $5,302,557,500 $5,226,900,300 $5,103,186,900 $5,123,316,900 $5,435,136,500 $428,760 $478,864 $490,122 $559,718 $576,427 $607,025 $21,712,100 $24,363,800 $24,962,100 $28,487,900 $29,320,000 $30,852,400 $60,606,755 $56,934,407 $54,444,926 $53,380,007 $52,844,029 $56,433,363 $5,572,275,800 $5,326,921,300 $5,251,862,400 $5,131,674,800 $5,152,636,900 $5,465,988,900 37.7% 41.7% 43.9% 46.6% 50.2% 47.8% Fiscal Year 171 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 180 STATISTICAL SECTION (UNAUDITED)Table 7 2008 2009 2010 2011 2012 2013 2014 2015 Operating Rate 32.504 34.402 34.869 39.689 40.303 42.902 45.868 45.234 Debt Service Rate 2.255 2.265 2.247 1.77 3.563 3.65 2.702 2.52 Total City of St. Louis Park 34.759 36.667 37.116 41.459 43.866 46.552 48.570 47.754 County Operating Rate 38.571 40.413 42.640 45.840 48.231 49.461 49.959 46.398 School District Operating Rate 8.691 9.08 9.295 12.917 13.324 13.976 16.741 15.642 Debt Service Rate 10.889 11.257 11.803 13.539 15.946 15.754 15.617 14.698 Other Taxing Districts St. Louis Park HRA Levy 1.344 1.759 1.718 1.817 1.806 1.676 1.808 1.679 Metro Mosquito Control 0.486 0.489 0.461 0.525 0.537 0.556 0.563 0.507 Metro Council 0.812 0.817 0.793 0.885 0.94 0.997 1.069 0.976 Metro Transit Debt 1.264 1.273 1.366 1.539 1.607 1.689 1.703 1.523 Hennepin County HRA - - 0.241 0.397 0.403 0.478 0.514 0.471 Hennepin Parks 3.137 3.334 3.499 3.765 3.943 4.054 4.169 3.789 Park Museum 0.719 0.771 0.778 0.815 0.799 0.754 0.766 0.702 HC Regional Railroad Authority 0.979 0.470 1.000 1.246 1.294 1.561 1.777 1.817 Referendum Market Value Based Rate - - 0.152 0.148 0.000 - - - Watershed 1.404 1.489 1.511 1.606 1.705 1.769 1.806 1.738 Total 103.055 107.819 112.373 126.498 134.401 139.277 145.062 137.694 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. City of St. Louis Park Overlapping Rates CITY OF ST. LOUIS PARK, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPING GOVERNMENTS LAST EIGHT FISCAL YEARS Year 172 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 181 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 8 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value ARC WEMPSMN001, LLC $98,745,000 1 1.81 % $77,915,300 2 1.48 % Interchange Investors 96,792,000 2 1.77 82,000,200 1 1.56 G & I VII 1600 & Moneygram LLC 90,702,700 3 1.66 - - - Gateway Knollwood, LLC 76,557,000 4 1.40 - - - Excelsior & Grand LLC 67,721,000 5 1.24 36,434,000 6 0.69 PNMC Holdings 57,879,100 6 1.06 - - - Middleton Park Place Investors, LLC 41,502,000 7 0.76 - - - West End Office MN, LLC 39,820,000 8 0.73 - - - Camerata LLC 38,060,000 9 0.70 - - - WTC No 459 Corp 37,700,000 10 0.69 25,235,000 8 0.48 Ellipse On Excelsior LLC 37,161,000 - 0.68 - - - Fine Properties of MN LLP - - - 29,942,900 7 0.57 Healthpartners - - - 66,319,400 3 1.26 Parkdale Property LLC - - - 48,591,500 4 0.92 Park Place OPCO LLC - - - 44,240,000 5 0.84 General Growth/Knollwood Co.- - - 24,938,500 9 0.47 Park Blvd. Housing Partnership - - - 23,335,500 10 0.44 Total $682,639,800 12.49 % $458,952,300 8.73 % Total taxable assessed value $5,465,988,900 $5,257,403,000 Source: Hennepin County Assessor's Office Taxpayer 2015 2006 173 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 182 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 9 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Total Tax Ended Levy for Percentage Percentage December 31 Fiscal Year Amount of Levy Amount of Levy 2006 $19,156,317 $18,838,892 98.34%$19,156,317 100.00% 2007 20,221,086 19,965,208 98.73% 20,221,086 100.00% 2008 21,100,651 20,693,403 98.07% 21,100,651 100.00% 2009 22,204,522 21,796,296 98.16% 22,204,522 100.00% 2010 22,841,195 22,465,478 98.36% 22,841,195 100.00% 2011 23,724,816 23,368,028 98.50% 23,699,178 99.89% 2012 24,746,325 24,435,571 98.74% 24,656,290 99.64% 2013 25,613,874 25,379,070 99.08% 25,525,498 99.65% 2014 26,527,267 26,129,048 98.50% 26,129,048 98.50% 2015 27,938,615 27,590,682 98.75% 27,590,682 98.75% Collected Within the Fiscal Year of the Levy Total Collections to Date 174 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 183 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Total Percentage Fiscal Obligation Tax Increment Capital Revenue Notes Primary of Personal Per Year Bonds Bonds Leases Bonds Payable Government Income (1) Capita (1) 2006 $12,645,000 $17,125,000 $7,500 $2,365,000 $1,791 $32,144,291 2.10% 710.91 2007 11,805,000 13,900,000 - 5,835,000 - 31,540,000 1.96% 668.25 2008 10,715,000 15,995,000 - 9,570,000 - 36,280,000 2.25% 768.68 2009 9,590,000 8,405,000 - 9,185,000 - 27,180,000 1.54% 575.59 2010 26,335,000 7,410,000 - 11,334,924 - 45,079,924 2.71% 996.24 2011 21,420,000 6,905,000 26,220 10,555,000 - 38,906,220 2.32% 854.99 2012 21,730,000 6,600,000 - 9,600,000 - 37,930,000 2.17% 833.53 2013 20,185,000 4,870,000 - 12,785,000 - 37,840,000 2.07% 816.19 2014 23,609,091 4,520,700 33,075 16,826,503 - 44,989,369 2.38% 946.62 2015 22,445,000 4,175,000 24,975 13,510,000 - 40,154,975 2.14% 845.16 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. (1) See the Schedule of Demographic Statistics on page 167 for personal income and population data. Governmental Activities Business Type Activities 175 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 184 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Percentage of Less: Amounts Estimated General Available Actual Taxable Fiscal Obligation in Debt Value of Per Year Bonds Service Funds Total Property (1) Capita (2) 2006 $12,645,000 $1,383,783 $11,261,217 0.21% 245.43 2007 11,805,000 1,715,646 10,089,354 0.18% 223.14 2008 10,715,000 1,798,636 8,916,364 0.16% 188.91 2009 9,590,000 1,378,737 8,211,263 0.15% 173.89 2010 26,335,000 2,765,611 23,569,389 0.42% 520.87 2011 21,420,000 2,792,922 18,627,078 0.35% 417.04 2012 21,730,000 3,862,613 17,867,387 0.34% 392.65 2013 20,185,000 2,409,643 17,775,357 0.35% 383.40 2014 23,609,091 3,050,073 20,559,018 0.40% 433.97 2015 22,445,000 3,050,073 19,394,927 0.35% 408.30 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. (1) See the Schedule of Assessed Value/Tax Capacity Value and Estimated Market Value on page 156 for property value data. (2) Population data can be found in the Schedule of Demographic Statistics on page 167. 176 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 185 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2015 Share of Debt Percentage Overlapping Outstanding (1) Applicable (2)Debt Overlapping Debt: Hennepin County $689,516,184 4.22%$29,097,583 St. Louis Park Independent School District 39,266,728 99.53%39,082,174 Hopkins Independent School District 165,308,887 3.30%5,455,193 Edina Independent School District 174,826,586 0.06%104,896 Hennepin County Suburban Park District 49,596,497 5.75%2,851,799 Hennepin Regional RR Authority 34,389,498 5.75%1,977,396 Metropolitan Council 67,164,480 1.96%1,316,424 Subtotal of Overlapping Debt:1,220,068,860 79,885,465 Direct Debt: City of St. Louis Park 19,522,460 100.00%19,522,460 Total of Direct and Overlapping Debt:$1,239,591,320 $99,407,925 Source: Hennepin County, Minnesota Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of St. Louis Park. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of St. Louis Park. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. (1) Net debt which excludes revenue and special assessment bonds (2) The percentage applicable to the City of St. Louis Park was determined by dividing the portion of tax capacity within the City by the total tax capacity of the of the taxing jurisdiction. Governmental Unit 177 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 186 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST EIGHT FISCAL YEARS 2008 2009 2010 Debt Limit $167,273,511 $167,168,274 $167,168,274 Total Net Debt Applicable to Limit 2,747,414 2,880,000 15,535,000 Legal Debt Margin $164,526,097 $164,288,274 $151,633,274 Total Net Debt Applicable to the Limit as a percentage of Debt Limit 1.64%1.72%9.29% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value $5,575,783,700 $5,572,275,800 $5,572,275,800 Debt Limit (3% of taxable market value)$167,273,511 $167,168,274 $167,168,274 Debt applicable to limit: Total Bonded Debt 36,280,000 27,180,000 45,079,924 Less: Amount Set Aside for Repayment of G.O. Bonds (487,586) - - G.O. Revenue Bonds (9,570,000)(9,185,000)(11,334,924) G.O. Improvement Bonds (7,480,000)(6,710,000)(10,800,000) G.O. Tax Increment Bonds (15,995,000)(8,405,000)(7,410,000) Total Net Debt Applicable to Limit:2,747,414 2,880,000 15,535,000 Legal Debt Margin:$164,526,097 $164,288,274 $151,633,274 Note A: Under State of Minnesota law, the City of St. Louis Park's outstanding general obligation debt should not exceed 3 percent of the market value of the taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Note B: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year 178 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 187 Table 13 2011 2012 2013 2014 2015 $159,807,639 $157,555,872 $153,950,244 $154,579,107 $163,979,667 15,150,000 14,755,000 13,820,000 17,959,975 16,976,875 $144,657,639 $142,800,872 $140,130,244 $136,619,132 $147,002,792 9.48% 9.36% 8.98% 11.62% 10.35% $5,326,921,300 $5,251,862,400 $5,131,674,800 $5,152,636,900 $5,465,988,900 $159,807,639 $157,555,872 $153,950,244 $154,579,107 $163,979,667 38,880,000 37,930,000 37,840,000 44,879,975 40,146,875 - - - - (10,555,000) (9,600,000) (12,785,000) (16,700,000) (13,510,000) (6,270,000) (6,975,000) (6,365,000) (5,690,000) (5,485,000) (6,905,000) (6,600,000) (4,870,000) (4,530,000) (4,175,000) 15,150,000 14,755,000 13,820,000 17,959,975 16,976,875 $144,657,639 $142,800,872 $140,130,244 $136,619,132 $147,002,792 Fiscal Year 179 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 188 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 14 PLEDGED REVENUE BOND COVERAGE LAST NINE FISCAL YEARS Utility Less:Net Fiscal Charges Operating Available Year and Other Expenses Revenue Principal Interest Coverage 2007 $5,025,203 ($4,115,066) $910,137 $195,000 $103,898 3.04% 2008 5,200,332 (4,300,290) 900,042 340,000 264,902 1.49% 2009 5,985,714 (4,982,093) 1,003,621 385,000 374,208 1.32% 2010 5,981,074 (3,851,018) 2,130,056 400,000 327,325 2.93% 2011 12,186,180 (8,269,813) 3,916,367 525,000 363,435 4.41% 2012 13,079,123 (8,387,329) 4,691,794 1,405,000 375,218 2.64% 2013 12,659,936 (10,417,099) 2,242,838 985,000 324,393 1.71% 2014 13,277,524 (10,514,981) 2,762,543 1,015,000 352,614 2.02% 2015 14,293,623 (10,730,244) 3,563,379 3,190,000 380,170 1.00% Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements. Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Water, Sewer, and Storm Water charges and other includes investment earnings. Operating expenses do not include interest, depreciation or transfers out. Debt Service 180 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 189 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 15 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Personal Income (amounts expressed Per Capita Median School Unemployment Year Population (1) in thousands) Income (1) Age (1) Enrollment (2) Rate (3) 2006 44,422 $1,491,876 $33,584 37.7 4,098 3.1% 2007 45,216 1,527,170 33,775 38.3 4,175 3.7% 2008 47,198 1,613,039 34,176 35.8 4,258 5.6% 2009 47,221 1,761,674 37,307 35.7 4,447 5.9% 2010 45,250 1,660,539 36,697 35.5 4,347 3.9% 2011 44,665 1,680,297 37,620 35.4 4,365 4.4% 2012 45,505 1,744,525 38,337 35.4 4,472 4.6% 2013 46,362 1,828,193 39,433 35.4 4,545 4.4% 2014 47,411 1,884,398 39,746 35.4 4,590 2.6% 2015 47,502 1,876,424 39,502 35.5 4,590 2.3% Source: (1) Federal Census Bureau data (2) St. Louis Park School District (3) Minnesota Department of Employment and Economic Development 181 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 190 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 16 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employees Rank Employees Rank Park Nicollet Health Services and Methodist Hospital 5,763 1 21.1 % 8,116 1 29.8 % Wells Fargo Mortage 1,450 2 5.3 - - - St. Louis Park Public Schools (I.S.D. No. 283)702 3 2.6 1,200 2 4.4 Sholom Home West 650 4 2.4 - - - Japs-Olson Company 614 5 2.2 750 3 2.8 Target 420 6 1.5 - - - MoneyGram International (formerly Travelers Express) 409 7 1.5 506 5 1.9 Health Partners 400 8 1.5 - - - St. Louis Park, City of 269 9 1.0 253 7 0.9 Epicor Software Corporation 250 10 0.9 - - - Nestle Nutrition (formerly Novartis Nutrition)- - 510 4 1.9 Granite City Brewing - - 263 6 1.0 Onvoy - - 153 9 0.6 Benilde-St. Margret's High School - - 142 10 0.5 Northland Aluminum Products - - 154 8 0.6 Total 10,927 39.92 % 12,047 44.18 % Total City employment 27,369 27,268 2015 2006 Employer Employment Percentage of Total City Percentage of Total City Employment 182 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 191 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 17 FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST NINE FISCAL YEARS 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function General government 123.0 122.5 114.5 105.5 95.4 90.3 88.8 88.4 89.4 Public safety Police Officers 51.0 51.0 51.0 51.0 51.0 52.0 52.0 53.0 55.0 Civilians 19.5 18.5 17.0 20.0 23.0 30.0 34.0 35.0 35.0 Fire Firefighters and officers 25.0 25.0 25.0 25.0 24.0 24.0 24.0 24.0 25.0 Public Works 32.0 32.0 32.0 32.0 32.0 33.0 35.0 34.0 35.0 Water 10.3 11.4 11.4 9.9 11.2 11.2 10.9 11.2 11.5 Sewer 3.7 2.7 2.7 3.6 4.9 4.9 4.9 5.5 6.0 Refuse 0.7 1.8 1.8 1.8 3.3 3.3 3.3 4.7 5.8 Storm Water 2.6 2.6 2.6 3.3 4.9 4.8 4.8 6.2 6.7 Total Employees 267.8 267.5 258.0 252.0 249.7 253.5 257.7 262.0 269.4 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 183 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 192 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 18 OPERATING INDICATORS BY FUNCTION LAST NINE FISCAL YEARS 2007 2008 2009 2010 2011 2012 2013 2014 2015 Police Medical calls 2,881 3,153 3,110 3,188 3,101 3,152 3,296 2,391 3,756 Traffic stops 1,981 2,724 2,462 4,236 5,362 7,146 6,674 6,907 6,692 Other 24,996 24,412 22,562 21,355 21,742 24,354 25,014 27,752 29,299 Fire Inspections/medical/all other calls 4,141 4,357 4,429 3,893 3,078 3,117 3,360 4,747 5,118 Fire calls - residential 45 52 82 50 69 66 53 53 62 Fire calls - structural 16 9 14 57 84 76 13 63 73 Fire calls - other 71 46 68 37 53 64 48 91 115 Cable TV Hours of new programming 94 294 250 456 535 - 549.5 311 400 Inspections Permits 8,616 13,687 8,895 8,397 9,220 9,091 10,254 11,111 9,684 Inspections 17,797 24,022 27,332 20,204 22,818 23,667 26,902 32,543 23,031 Culture and recreation Aquatic park attendance 80,347 76,218 67,617 69,825 67,422 70,270 52,557 51,894 68,355 Hours of ice time 6,574 6,787 6,354 6,493 4,687 5,444 4,701 4,773 4,626 Water Gallons of water production (billions)2.3 2.4 2.4 2.1 2.1 2.4 2.2 2.09 2.01 Average watermain breaks per year 30 30 30 30 30 30 27 40 41 Public Works Snowplowing hours 1,556 1,672 2,454 3,216 2,543 1,173 6,449 3,752 2,284 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 184 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 193 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 19 CAPITAL ASSET STATISTICS BY FUNCTION LAST NINE FISCAL YEARS 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function Public safety Police Stations 111111111 Patrol units 26 26 26 26 26 28 26 25 28 Fire Stations 222222222 Vehicles 13 13 13 13 13 14 13 13 10 Fire hydrants 1,699 1,699 1,699 1,699 1,699 1,699 1,699 1,699 1,699 Culture and recreation Parks 51 53 53 53 57 57 57 57 52 Trails 10 10 10 10 10 10 10 10 10 Streets Lane miles of streets 290 290 310 311 311 311 311 311 311 Miles of streets 117 117 155 156 155 155 155 155 155 Water Wells 11 11 11 11 11 11 11 11 10 Water treatment plants 666666666 Miles of watermain 148 148 148 149 160 160 160 160 160 Sanitary Sewer Lift stations 23 23 23 23 23 23 23 23 23 Miles of sewermain 138 138 138 139 147 147 147 147 147 Storm Sewer Lift stations 10 10 10 10 10 10 10 10 10 Ponds and lakes 26 26 26 52 52 52 52 52 52 Catch basins 2,943 2,943 3,154 3,731 3,731 3,731 3,731 3,731 3,731 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 185 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 194 - This page intentionally left blank - 186 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 195 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota We have audited the financial statements of the governmental activities, the business- type activities, each major fund and the aggregate remaining fund information of the City of St. Louis Park, Minnesota for the year ended December 31, 2015. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, as well as certain information related to the planning scope and timing of our audit. We have communicated such information in our letter to you dated January 4, 2016. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Results Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Notes 7 and 16 to the financial statements, the City implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December 31, 2015. The most significant effect of this standard is that it required the City to record its proportionate share of the net pension liability of defined benefit pension plans, as well as related deferred inflows and outflows of resources. These items are only reported on full-accrual financial statements. The liability was initially recorded by restating beginning net position. It should be noted that the City’s contribution requirements to pension plans have not changed as a result of this standard. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 196 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 2 Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were management’s estimates of the net OPEB obligation, net pension liability, pension related deferred inflows and outflows of resources, pension expense and value of land held for resale. Management’s estimates relating to the net OPEB obligation, net pension liability, pension related deferred outflows and inflows of resources and pension expense are based on actuarial studies. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relations to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosures most likely to be considered sensitive are Note 7 – Defined Benefit Pension Plans and Note 16 – Change in Accounting Principle/Prior Period Adjustment. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. The following areas contained material misstatements detected as a result of audit procedures and were corrected by management: prepaid expenses, proceeds from long term debt, capital assets, and intergovernmental revenue. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 197 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 3 Management Representations We have requested certain representations from management that are included in the management representation letter dated June 7, 2016. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management discussion and analysis, budgetary comparison information, OPEB Schedule of Funding Progress, the Schedules of Proportionate Share of Net Pension Liability, the Schedules of Pension Contributions, and the Notes to Required Supplementary Information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 198 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 4 We are not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of the City of St. Louis Park, Minnesota’s City Council and management, and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 7, 2016 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 199 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota We have audited in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota as of and for the year ended December 31, 2015, and the related notes to the financial statements, and have issued our report thereon dated June 7, 2016. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes Section 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financings. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City of St. Louis Park, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we preformed additional procedures, other matters may have come to our attention regarding the City of St. Louis Park, Minnesota’s noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 7, 2016 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 200 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council and Management City of St. Louis Park, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements, and have issued our report thereon dated June 7, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of St. Louis Park, Minnesota’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 201 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Page 2 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a deficiency in internal control, described in the accompanying schedule of findings and responses as finding 2015-001 that we consider to be a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of St. Louis Park, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of St. Louis Park, Minnesota’s Response to Finding City of St. Louis Park, Minnesota’s response to the finding identified in our audit is described in the accompanying schedule of findings and responses. City of St. Louis Park, Minnesota’s response was not subjected to the auditing procedures applied in the audit of financial statements and, accordingly, we express no opinion on it. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Louis Park, Minnesota’s internal control over compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 7, 2016 Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 202 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Schedule of Findings and Responses Page 3 2015-001 Financial Statement Adjustments Criteria: Financial Statement adjustments (current year and prior period) are considered to be a deficiency in internal control as defined by auditing standards. Condition: A prior period adjustment was recorded in the financial statements as follows: Equipment expensed in previous years was capitalized in 2015 of $82,302. During the course of our audit, we identified adjustments to the financial statements as follows: Prepaid expenses were overstated by $106,000. Proceeds from long term debt were understated by $2,200,000. Due from other governments and intergovernmental revenue were understated by $297,455. Adjustments to capital assets, accumulated depreciation and net gain/loss on sale of fixed asset accounts related to assets traded in during 2015. Cause: The City’s year-end closing process did not identify the adjustments prior to the audit. Effect: By not having effective closing and review controls, there is an increased risk that financial statement misstatements could occur and not be detected in a timely basis. Recommendation: We recommend the City continue efforts to assure that all adjustments are identified during the year-end closing process. Views of Responsible Officials and Corrective Action Plan: Staff has discussed these items and identified corrective actions. Finance staff has been involved with the equipment meetings, and this resulted in finding the expenses from prior years. For like-kind exchanges of fixed assets, staff will manually dispose of the previous asset, and manually transfer any book value to the new asset. In regard to prepaid expenses, staff will reverse the prepaid expenses in the next year when completing the journal entry for the audit. Finance staff will be monitoring intergovernmental revenue online to ensure all revenue is requested and booked in the appropriate year. Special Study Session Meeting of June 20, 2016 (Item No. 2) Title: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 Page 203 Meeting: Special Study Session Meeting Date: June 20, 2016 Written Report: 3 EXECUTIVE SUMMARY TITLE: City Website Redesign Update RECOMMENDED ACTION: No action at this time. The purpose of this report is to update the City Council of the status of the redesign of the city website at www.stlouispark.org. POLICY CONSIDERATION: None. Please inform staff of any questions you might have. SUMMARY: In response to a request for proposal, the city has hired California-based Vision (previously known as Vision Internet) to provide redesign, content management service and hosting of the city website at www.stlouispark.org. The project kicks off this month with a series of surveys to determine goals and objectives for the new website. While two surveys are internal only, a third online survey will be distributed through the city website, social media and other methods to gain input from the community. Surveys are due by June 30. Additional behind-the-scenes work is underway to gather data via analytics and heat mapping, a visual method using colors to understand how visitors engage with the city website. On July 14, Vision will host three in-person focus groups to learn more about what users want from a new website. Participants may volunteer via an online form that will be distributed via the city website and social media. Additionally, city staff will invite specific participants to ensure a representative cross section of the community. Once these steps are complete, the gathered data from surveys, focus groups and analytics will be used to drive the initial navigation development and design process. City staff will be working to rewrite and re-organize current website content in preparation for content migration. Launch of the new website is scheduled for no later than early first quarter 2017. City staff will continue to provide regular updates to the city council throughout the process, and will invite council feedback at the design stage. FINANCIAL OR BUDGET CONSIDERATION: Total initial fee is $60,000, with annual maintenance fee of $10,000 for a contract period of three years. Funding is included in the IR Department budget. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: None Prepared by: Jacque Larson, Communications and Marketing Manager Jason Huber, IT Manager Reviewed by: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager Meeting: Economic Development Authority Meeting Date: June 20, 2016 Action Agenda Item: 7a EXECUTIVE SUMMARY TITLE: Second Amendment to the Preliminary Development Agreement with PLACE RECOMMENDED ACTION: Motion to Adopt EDA Resolution approving the Second Amendment to the Preliminary Development Agreement with PLACE. POLICY CONSIDERATION: Does the EDA wish to amend its Preliminary Development Agreement with PLACE to include the five parcels owned by the City and Hennepin County Regional Rail Authority immediately south of the proposed Wooddale LRT station? SUMMARY: On May 18, 2015, the EDA and City entered into a Preliminary Development Agreement (PDA) with PLACE. The agreement outlines the parties’ respective roles and responsibilities in order to cooperatively bring a potential mixed use redevelopment to fruition at the SE quadrant of Hwy 7 and Wooddale Ave. It also provides PLACE with exclusive rights to negotiate acquisition of the properties on the north side of the Wooddale LRT station with the EDA and City. On February 16, 2016, the EDA and City approved a First Amendment extending the term of the PDA until February 28, 2017. At the June 6, 2016 Special Study Session, there was consensus support for allowing PLACE to prepare redevelopment plans encompassing the properties on both the north and south sides of the proposed Wooddale LRT station for traffic management purposes. The subject property south of the station includes three parcels owned by the City, located at 3575 Wooddale Avenue, 5814 36th Street, and 5816 36th Street (along with vacated right-of-way) and two parcels owned by the Hennepin County Regional Rail Authority, located at 3565 Wooddale Avenue (leased to Nash Frame) and a portion of 3548 Xenwood Avenue. Staff is working with Hennepin County staff to have the Rail Authority parcels conveyed to the City with the expectation they would subsequently be sold to PLACE. PLACE has requested that the Preliminary Development Agreement be amended to include the five City/Rail Authority properties south of the proposed Wooddale LRT Station. The amendment is necessary to provide PLACE’s funding partners with continued assurance of its ability to secure the subject properties for the proposed redevelopment. It is the expectation of all parties that a formal Purchase and Redevelopment Contract could be reached by the extended termination date. FINANCIAL OR BUDGET CONSIDERATION: Under the proposed Second Amendment, PLACE remains obligated to reimburse the EDA for all out-of-pocket costs it incurs in connection with review and analysis of the proposed Development prior to the extended termination date. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Resolution of Approval Second Amendment Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director Approved by: Tom Harmening, EDA Executive Director and City Manager Economic Development AuthorityMeeting of June 20, 2016 (Item No. 7a) Page 2 Title: Second Amendment to the Preliminary Development Agreement with PLACE EDA RESOLUTION NO. 16-____ RESOLUTION APPROVING A SECOND AMENDMENT TO THE PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF ST. LOUIS PARK, AND PLACE BE IT RESOLVED BY the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082, as amended, the Authority administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment of certain substandard property within the Project. 1.02. The Authority and the City of St. Louis Park (the “City”) own certain property (the “Property”) within the Project, which Property has been the subject of certain preliminary negotiations with PLACE (the “Developer”) for purposes of constructing a mixed-use (multi- family residential and commercial), mixed-income development on the Property and related parking, incorporating renewable energy sources including an anaerobic digester (the “Development”). 1.03. The Authority, the City, and the Developer previously executed a Preliminary Development Agreement, dated as of May 18, 2015 (the “Agreement”), providing for the performance of certain activities on the part of the parties in preparation for the negotiation of a definitive Contract for Private Redevelopment in connection with the Property; and subsequently executed a First Amendment to the Agreement dated as of February 16, 2016 (the “First Amendment”) to extend the deadline for the completion of these preliminary activities for a period of twelve months. 1.04. The parties have negotiated and propose to execute a Second Amendment to the Agreement (the “Second Amendment”) in order to expand the Property to include three additional parcels owned by the City and two additional parcels owned by the Hennepin County Regional Rail Authority (the “Additional Parcels”). Section 2. Second Amendment Approved. 2.01. The Second Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Second Amendment by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Second Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. Economic Development AuthorityMeeting of June 20, 2016 (Item No. 7a) Page 3 Title: Second Amendment to the Preliminary Development Agreement with PLACE 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration: Adopted by the Economic Development Authority June 20, 2016 Thomas K. Harmening, Executive Director Anne Mavity, President Attest: Secretary Economic Development AuthorityMeeting of June 20, 2016 (Item No. 7a) Page 4 Title: Second Amendment to the Preliminary Development Agreement with PLACE SECOND AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT THIS SECOND AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT (this “Agreement”), dated June 20, 2016, by and between the St. Louis Park Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), the City of St. Louis Park, a Minnesota municipal corporation (the “City”), and PLACE, a Minnesota nonprofit corporation (the “Developer”); WITNESSETH: WHEREAS, the Authority, the City, and Developer previously entered into a Preliminary Development Agreement dated as of May 18, 2015, as amended by a First Amendment thereto dated as of February 16, 2016 (as so amended, the “Initial Agreement”), to promote development of certain property within Redevelopment Project No. 1 (the “Project”) in the City, located at 5725, 5925 and 5815 Highway 7 (the “City and Authority Property”) and 3520 Yosemite Avenue (the “Rail Property” and together with the City and Authority Property, the “Property”); and WHEREAS, the Property subject to the Initial Agreement is made up of four parcels, of which the City and Authority Property is owned by the City or the Authority, and the Rail Property is owned by the Hennepin County Regional Rail Authority (the “Rail Authority”); and WHEREAS, the parties desire to expand the Property to include three additional parcels owned by the City, located at 3575 Wooddale Avenue, 5814 36th Street, and 5816 36th Street (along with certain right-of-way to be vacated and accrued to these parcels) (the “Additional City Parcels”), and to include two additional parcels owned by the Rail Authority, located at 3565 Wooddale Avenue and a portion of 3548 Xenwood Avenue (the “Additional Rail Parcels”). NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the Authority, the City and the Developer hereby agree as follows: 1. During the term of this Second Amendment, the parties agree to continue working cooperatively toward the goals outlined in the Initial Agreement, pursuant to its terms. 2. The Property subject to the Initial Agreement, as amended by this Second Amendment, is expanded to include the Additional City Parcels. In addition, the City and Authority will attempt in good faith to acquire the Additional Rail Parcels, and if such Additional Rail Parcels are so acquired, the Property will be expanded to include the Additional Rail Parcels. 3. This Second Amendment shall terminate by its terms if the governing bodies of the Authority and City have not approved the Contract (as defined in the Initial Agreement) by February 28, 2017. Upon such termination, the Developer remains obligated to pay any costs payable under paragraph 13 of the Initial Agreement that were incurred by the Authority and the City prior to such date. 4. Except as amended by this Second Amendment, the Initial Agreement shall remain in full force and effect. Upon execution, the Developer shall reimburse the Authority for all out-of pocket- costs incurred by the Authority in connection with negotiating, drafting and approval of this Second Amendment. Economic Development AuthorityMeeting of June 20, 2016 (Item No. 7a) Page 5 Title: Second Amendment to the Preliminary Development Agreement with PLACE IN WITNESS WHEREOF, the City and Authority have caused this Agreement to be duly executed in their name and behalf and their seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the date and year first above written. PLACE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By: Its ______________________________ Its President Its Executive Director CITY OF ST. LOUIS PARK Its Mayor Its City Manager Meeting: City Council Meeting Date: June 20, 2016 Presentation: 2a EXECUTIVE SUMMARY TITLE: Alzheimer’s Disease Awareness Day Proclamation RECOMMENDED ACTION: The Mayor is asked to read the attached proclamation. Karen Hoppe, Chief Financial Officer of Alzheimer's Association Minnesota-North Dakota, will be in attendance to accept this recognition. POLICY CONSIDERATION: None at this time. SUMMARY: June 20, 2016 is the summer solstice this year, i.e. “The Longest Day” of the year; and communities across our state and nation will recognize this day as Alzheimer’s Disease Awareness Day. The duration of this sunrise-to-sunset event symbolizes the challenging journey of those living with the disease and their caregivers. For people with the disease and their caregivers, every day is the longest day. On this day teams in our community and across the country will participate in an activity they love to honor someone facing the disease. The Alzheimer’s Association is also working with communities and organizations to light up landmarks across our state and nation in purple to raise awareness. Our own Highway 7 Bridge will be lit purple on June 20th in recognition of this day. These efforts are to support the mission of the Alzheimer’s Association to eliminate Alzheimer’s disease through the advancement of research, to provide and enhance care and support for all affected, and to reduce the risk of dementia through the promotion of brain health. Alzheimer’s is a progressive brain disorder that damages and eventually destroys brain cells, leading to a loss of memory, thinking and other brain functions. Designating this day is an important step toward greater public awareness and understanding of this fatal disease and the impacts on our community. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Proclamation Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item No. 2a) Page 2 Title: Alzheimer’s Disease Awareness Day Proclamation PROCLAMATION Alzheimer’s Disease Awareness Day WHEREAS, Alzheimer’s disease, a progressive neurodegenerative brain disorder, tragically robs individuals of their memories and leads to progressive mental and physical impairments; and WHEREAS, there are no known treatments to prevent, cure, or even delay the onset or slow the progression of Alzheimer’s disease; and WHEREAS, an estimated 5 million people aged 65 and over have Alzheimer’s disease and another 200,000 people under age 65 have younger-onset Alzheimer’s disease; and WHEREAS, Alzheimer’s disease is the sixth leading cause of death in the United States and the fifth leading cause among the elderly; and WHEREAS, Hispanics/Latinos are 1.5 times more likely to develop Alzheimer's and African- Americans are two times more likely to develop late -onset Alzheimer's, making it imperative to increase research and improve understanding about the increased incidence of Alzheimer's in ethnic and racial groups; and WHEREAS, nearly 249,000 family members and friends cared for the 91,000 Minnesotans with Alzheimer’s and other dementias, providing 284 million hours of unpaid care, with the annual value of this caregiving totaling $3.5 billion in Minnesota alone; and WHEREAS, in recognition of the individuals, families, friends and caregivers dealing with Alzheimer’s disease, the researchers who are seeking a cause or cure; and WHEREAS, the City of St. Louis Park recognizes the efforts of the Alzheimer’s Association to promote awareness to fight Alzheimer’s disease and other dementias, thereby improving the quality of human life for those living with Alzheimer’s disease and their caregivers; and WHEREAS, St. Louis Park is an ACT on Alzheimer's dementia-friendly community; and WHEREAS, The summer solstice, June 20, 2016, has been declared The Longest Day, with teams around the world coming together to honor the strength, passion, and endurance of people facing Alzheimer's disease with a day of activity; THEREFORE, BE IT RESOLVED that the Mayor and City Council for the City of St. Louis Park, Minnesota do hereby proclaim June 20, 2016, as Alzheimer’s Disease Awareness Day. WHEREFORE, I set my hand and cause the Great Seal of the City of St. Louis Park to be affixed this 20th day of June, 2016. ________________________________ Jake Spano, Mayor Meeting: City Council Meeting Date: June 20, 2016 Presentation: 2b EXECUTIVE SUMMARY TITLE: Lenox Foundation 30th Anniversary Proclamation RECOMMENDED ACTION: The Mayor is asked to read the attached Proclamation celebrating the 30th Anniversary of the Lenox Foundation. Sherrill Mozey, Foundation President, Board Members, and Linda Ashe, Adult Services Manager (Community Education) will be attending to accept this recognition. POLICY CONSIDERATION: None at this time. SUMMARY: The City of St. Louis Park appreciates the commitment and dedication of the Lenox Foundation. In recognition of the 30 Year Anniversary of the Lenox Foundation, the City Council would like to honor and express thanks to the Lenox Foundation for its continued support of the Senior Program in our community and the contributions it has made. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Proclamation Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item No. 2b) Page 2 Title: Lenox Foundation 30th Anniversary Proclamation PROCLAMATION Lenox Foundation 30th Anniversary WHEREAS, the St. Louis Park Senior Program is celebrating its 30th year of service to Seniors in the community; and WHEREAS, the Articles of Incorporation were received for Lenox from the Minnesota Secretary of State on March 19, 1986; and WHEREAS, the mission of the Lenox Foundation is to improve and enhance the lives of adults age 55 and over in St. Louis Park and the broader community; and WHEREAS, the first Board consisted of 8 members and since that time there has been approximately 64 total board members; and WHEREAS, the Founder’s Club raised an initial $19,000 by 1988 and now has more than $300,000 in assets; and WHEREAS, Over $206,980 in financial support has been given to the St. Louis Park Senior Program in the last 30 years; and WHEREAS, this celebration provides an opportunity to reflect on the efforts of those whose foresight and dedication were instrumental in furthering the St. Louis Park Senior Program and development of a multi-resource center for Seniors at Lenox Community Center; and WHEREAS, the Senior Program at Lenox Center visualizes an opportunity to serve not only present members, but also perpetuates the Senior Program for future seniors by creation of the Lenox Foundation to provide a future source of funding NOW THEREFORE, let it be known, that the Mayor and City Council of the City of St. Louis Park hereby recognize the 30th Anniversary of Lenox Foundation and ask all to join in celebrating this auspicious occasion. WHEREFORE, I set my hand and cause the Great Seal of the City of St. Louis Park to be affixed this 20th day of June, 2016. __________________________ Jake Spano, Mayor Meeting: City Council Meeting Date: June 20, 2016 Presentation: 2c EXECUTIVE SUMMARY TITLE: Comprehensive Annual Financial Report for the Year Ended December 31, 2015 RECOMMENDED ACTION: No action is required. POLICY CONSIDERATION: Is the City Council satisfied that the information contained in the Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, Report on Minnesota Legal Compliance, and Report on Internal Control over Financial Reporting for the year ended December 31, 2015 will allow for effective decision making? SUMMARY: The city is required to have an annual independent audit of its financial statements in which the audit firm issues an opinion on the financial statements. The City received a clean audit opinion, or “unmodified opinion”, which means that Redpath and Company believe the financial statements, as presented by city staff, fairly represents the City’s financial condition as of December 31, 2015. David J. Mol – Partner from Redpath and Company, will make a presentation on the opinion issued and other required forms of communication to the City Council. After City Council reviews the CAFR staff will submit it to the Office of the State Auditor as required and also submitted it to the Government Finance Officers Association (GFOA) to be considered for the Achievement for Excellence in Financial Reporting certificate program for which the City of St. Louis Park has been recognized for 32 consecutive years by June 30, 2016. FINANCIAL OR BUDGET CONSIDERATION: This report continues to show the City of St. Louis Park remains in a strong financial condition. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: 1) 2015 – Comprehensive Annual Financial Report* 2) 2015 – Issued Governance Letter* 3) 2015 – Minnesota Legal Compliance Report* 4) 2015 – Internal Control over Financial Reporting* (* See Special Study Session Report for Attachments.) Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: June 20, 2016 Minutes: 3a UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA MAY 16, 2016 1. Call to Order Mayor Spano called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Thom Miller, and Susan Sanger. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Mattick), Deputy City Manager/Human Resources Director (Ms. Deno), Controller (Mr. Simon), Finance Supervisor (Mr. Heintz), Sr. Engineering Project Manager (Mr. Shamla) Assistant Zoning Administrator (Mr. Morrison), Fire Chief (Mr. Koering), and Recording Secretary (Ms. Pappas). Guests: Stacy Culver (Roots and Shoots Student Group) and Stacie Kvilvang (Ehlers & Associates). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. Retirement Recognition of Firefighter Eric Curran-Bakken Mayor Spano read the proclamation for retiring firefighter Eric Curran-Bakken, and congratulated him for his years of service. He noted Firefighter Curran-Bakken was a great asset to the community and that the city owes him a great debt of thanks. Firefighter Curran-Bakken said he began this career at age 40 and thanked his wife and children for their support over the years. He said it is a great privilege working and living in the City of St. Louis Park, and he thanked the City Council. Chief Koering also recognized Mr. Curran-Bakken and noted how as a firefighter Mr. Curran-Bakken sacrificed much and did many things for his own self-improvement and the improvement of others. He wished him luck in retirement and said he will miss Mr. Curran- Bakken’s calming leadership. Mr. Harmening also congratulated Mr. Curran-Bakken and thanked him for his service, integrity, professionalism and leadership. Mayor Spano thanked Mr. Curran-Bakken for his regular post hospital visits in the city’s partnership with Park Nicollet Health Services, which continues to be a tremendous service. City Council Meeting of June 20, 2016 (Item No. 3a) Page 2 Title: City Council Meeting Minutes of May 16, 2016 2b. Recognition of Donations Mayor Spano noted the St. Louis Park Home Depot donated $7,000 for Gardens in the Park. The Minneapolis Auto Club donated $1,000 to purchase Safety Camp t-shirts, and George Hageman donated a canoe to Westwood Hills Nature Center. 3. Approval of Minutes 3a. City Council Special Study Session Minutes April 18, 2016 It was moved by Councilmember Hallfin, seconded by Councilmember Brausen, to approve the Special Study Session Meeting Minutes of April 18, 2016 as presented. The motion passed 7-0. 3b. City Council Meeting Minutes April 18, 2016 It was moved by Councilmember Hallfin, seconded by Councilmember Sanger, to approve the April 18, 2016 Meeting Minutes as presented. The motion passed 7-0. 3c. City Council Meeting Minutes May 2, 2016 It was moved by Councilmember Brausen, seconded by Councilmember Hallfin, to approve the May 2, 2016 Meeting Minutes as presented. The motion passed 7-0. 4. Approval of Agenda and Items on Consent Calendar CONSENT CALENDAR 4a. Adopt Resolution No. 16-063 confirming the appointment of Timothy Simon as City Treasurer, effective May 16, 2016. 4b. Approve Second Reading and Adopt Ordinance No. 16-2492 amending the zoning code relating to microdistilleries and cocktail rooms, and to approve the Summary Ordinance for publication. 4c. Adopt Resolution No. 16-064 approving acceptance of wood-based, raised garden beds for the Summer Playground Edible Garden Program at Louisiana Oaks Park from the St. Louis Park Home Depot ($7,000 value). 4d. Adopt Resolution No. 16-065 approving acceptance of a grant from the Minneapolis Auto Club Foundation for Safety in the amount of $1,000 for the purchase of Safety Camp t-shirts as a part of the annual Safety Camp event. 4e. Adopt Resolution No. 16-066 approving acceptance of a canoe from George Hagemann to Westwood Hills Nature Center for program use. 4f. Approve for filing Parks & Recreation Advisory Commission Minutes of March 16, 2016. 4g. Approve for filing Planning Commission Minutes of April 20, 2016. City Council Meeting of June 20, 2016 (Item No. 3a) Page 3 Title: City Council Meeting Minutes of May 16, 2016 It was moved by Councilmember Lindberg, seconded by Councilmember Hallfin, to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 7-0. 5. Boards and Commissions 5a. Approve Appointment of Citizen Representatives to Boards and Commissions Mayor Spano described the appointment process and read the slate of appointees. It was moved by Councilmember Sanger, seconded by Councilmember Lindberg, to approve the appointment of citizen representatives as listed in Exhibit A. The motion passed 7-0. 6. Public Hearings 6a. First Reading of Ordinance Vacating Easements, ROW at 7250 & 7341 State Hwy 7 Mr. Shamla presented the staff report. Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed the public hearing. It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to approve first reading of an Ordinance Vacating Public Right of Way and Drainage and Utility Easements and set second reading of Ordinance for June 6, 2016. The motion passed 7-0. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Climate Inheritance Resolution. Resolution No. 16-067 Ms. Deno and Ms. Pinc presented the resolution for approval. Roots and Shoots representatives from St. Louis Park High School appeared before the City Council. Nathan Kempf, 3937 Kipling, thanked the council for their interest in this issue. He stated it is empowering to know that a group can come together to begin a commitment for a sustainable society. Sophia Skinner, 4521 Vallacher Ave., stated this is a momentous thing that has been accomplished for the city and other cities. She thanked the council and acknowledged this is not easy work, but stated if we work together we can create a brighter future. City Council Meeting of June 20, 2016 (Item No. 3a) Page 4 Title: City Council Meeting Minutes of May 16, 2016 Lukas Wiede, 1624 Nevada Ave., stated when Roots and Shoots presented in March, they were just beginning this process. He noted that most of the group are not seniors, and next year they plan to continue this work and make sustainability a big issue in St. Louis Park. He added the momentum they have built is exciting, and it is empowering to think about what has been accomplished. He added that while this is a controversial issue, the group believes they can move beyond this. He also noted a quote from Roots and Shoots member and Environment and Sustainability Commissioner Jayne Stevenson that none should be afraid of our future. He thanked the council for caring about the future as much as the members of the Roots and Shoots program. Councilmember Brausen agreed this is hard work, but it is essential, and our survival on this planet depends on our commitment to it. He stated he appreciates the group’s optimism. Councilmember Miller recognized and appreciated the group for their hard work. Councilmember Sanger thanked the students for pushing the City Council and said she is impressed with all the work they have done. She noted their work will help develop goals and strategies for everyone in the community - businesses, residents, and city services - as the community begins to work on the comprehensive plan. Councilmember Lindberg thanked the students for helping the council get to this point. He added there have been many conversations on this, and the council desires to be a leader on this sustainability journey. He looks forward to a continued partnership on this issue. Mayor Spano stated this council and prior councils have done good work on environment and sustainability in the past, but those efforts have been targeted on one issue. Now more work will be done on high level issues. He complimented the students on their lobbying of the council and their clear vision, which ultimately helped the council commit to do this work. It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to waive the reading and adopt Resolution No. 16-067, Climate Inheritance Resolution. The motion passed 7-0. Paul Thompson, of Edina, commented that the City of Edina will begin working with iMatter shortly, and he thanked the St. Louis Park City Council for their example and leadership in this work. 8b. Acceptance of the Southwest Light Rail Corridor-wide Housing Strategy. Resolution No. 16-068 Ms. Schnitker gave a brief overview of the resolution relating to a corridor-wide housing strategy for future housing planning and policy in the station areas. It was explained that the work to develop this plan has involved an inventory of all current houses and future needs for housing along the corridor. These efforts have helped form a base for a corridor- wide housing strategy and an understanding of the current and potential local, county, state and federal technical and financial resources to support a full range of housing. Input was gathered from various stakeholders, and a final plan was presented and approved in January of 2016 by the SW Corridor Works Steering Committee and is now being referred to City Council Meeting of June 20, 2016 (Item No. 3a) Page 5 Title: City Council Meeting Minutes of May 16, 2016 member cities and partner organizations for action as appropriate. Next steps involve the Housing Committee continuing to meet to review implementation of the strategies identified in the plan. Councilmember Mavity recognized Ms. Schnitker’s work on this strategy and her leadership role. She added this policy overall will be extraordinarily important for St. Louis Park’s competitiveness and for receiving future funding. St. Louis Park has been a leader in housing, and this plan along the corridor will be a model for what other cities should also be doing. Council Member Brausen noted that growth will occur around these transit connections, and we will be challenged to guide the development of the 11,000 housing units and to make sure that the 2,300 units of affordable housing be built, so that all people have access to the opportunities that will occur along the LRT line. Gentrification along the corridor is a real possibility. Although we welcome the higher property values that go with this type of development, ALL of us need to realize the benefits of this major public works project. This strategy lays out goals and strategies for us as a corridor. We in St. Louis Park need to be willing to carry our fair share while demanding that our adjoining neighbors shoulder their fair share of new housing and affordable housing. All communities benefit when we pursue a common vision where we all have housing options. It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to waive the reading and adopt Resolution No. 16-068 Accepting the Southwest Corridor-wide Housing Strategy as a means to inform future housing planning and policy in the station areas. The motion passed 7-0. 8c. Conditional Use Permit – Marriott Minneapolis West Hotel, 9960 Wayzata Blvd. Resolution No. 16-069 Mr. Morrison presented the report. He noted the existing conditions of the property which include a seven-story, 195 room Marriott hotel with a restaurant and a conference center. The proposed hotel would be a Courtyard by Marriott constructed on the north side of the current Marriott. It would be six stories and have 142 rooms. It would be connected to the Marriott with an enclosed walkway, allowing guests to utilize the amenities of the Marriott. Both hotels will cater to business clients and will not be extended stay hotels. Mr. Morrison stated a neighborhood meeting was conducted, and construction noise, parking and landscaping was discussed. A parking study found that during peak hours, only 378 spaces are required for these hotels. There is a surplus of 182 parking spaces in the plan. Councilmember Brausen stated the developer did a nice job of discussing this project at the neighborhood meeting, and he encouraged support of this Conditional Use Permit resolution. It was moved by Councilmember Brausen, seconded by Councilmember Lindberg, to waive the reading and adopt Resolution No. 16-069 Approving the Conditional Use Permit to permit two principal buildings on one property with conditions as recommended by staff. The motion passed 7-0. City Council Meeting of June 20, 2016 (Item No. 3a) Page 6 Title: City Council Meeting Minutes of May 16, 2016 8d. First Reading of Ordinance Amendment Related to the Subdivision Code. Mr. Morrison presented the staff report. The proposed ordinance is to update the design standards and make clarifications around sidewalks and easement. The ordinance had been presented to council in March, 2016, and also discussed in study session in April, 2016, and the council was supportive of the proposed amendments. Councilmember Brausen noted the council had spent a lot of time during the study session discussing this issue. It was moved by Councilmember Miller, seconded by Councilmember Hallfin, to approve the first reading of an Ordinance amending the subdivision code, and to set the second reading for June 6, 2016. The motion passed 7-0. 8e. Authorize Sale of Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects. Resolution No. 16-070 Mr. Simon was introduced and presented along with Mr. Heintz. Staff recommends issuing bonds for both the indoor refrigeration replacement and the outdoor recreation facility at the Rec Center in an amount not to exceed $10 million in aggregate. The issuance of bonds for these projects is consistent with the City’s Long Range Financial Management Plan and best allows the City to keep its very strong financial position. The issuance also allows the costs to be paid over the course of 11 years. In order to preserve the ability to bond for all of the city’s construction costs, a pre-existing declaration of intent by the city to use bond proceeds to finance all or a portion of the expenditures is required prior to incurring those costs. Other project costs will be financed using internal sources, along with grants and contributions from outside entities. Municipal bonds are still at historically low interest rates, and the first payment will be part of the tax levy payable 2017. Staff will bring back the results of the competitive bond sale on June 20th. Ms. Stacie Kvilvang, Ehlers & Associates, confirmed the bonds are still available at low rates and also noted that St. Louis Park has an AAA credit rating. Councilmember Miller stated he will oppose this bonding. He stated he sees no separation between the construction project and the bonding, and the project is too expensive and will be used by too few residents. He felt there was way too little public process involved in the project, and he suggested there are perhaps other ways to finance it. He suggested financing through the hockey association and by other means so as not to burden tax payers. He added this is a big risk with big expenditures in St. Louis Park, especially with the coming expenditures of the light rail, which will add more tax burden. He is also concerned that other projects may not be completed in the city due to this project and stated St. Louis Park is in need of a community center that would serve more citizens across the board. He stated the Rec Center project serves primarily upper class white males who play hockey, adding they need to consider further tax burdens to the schools also with this project. Councilmember Sanger stated she is very reluctantly supporting this bond initiative. She supported bonding for the indoor refrigerated ice project, but does not support bonding for the outdoor refrigerated ice project. She also disagrees with the public process that occurred City Council Meeting of June 20, 2016 (Item No. 3a) Page 7 Title: City Council Meeting Minutes of May 16, 2016 with the 4-2 vote. She noted the city never identified the need for this project, and originally the hockey association stated they would contribute one-third of the cost for the project. Councilmember Sanger added St. Louis Park already has two indoor ice rinks, as well as six outdoor ice rinks, and there are many other things that could be done with this money. She agreed a community center would be a more favorable project and would serve a far more diverse population within the community - people of all ages, all abilities and demographic backgrounds. She said the ice rink serves a disproportionately small group of young white males. She said the city never did a needs assessment on the project, and we have no evidence to substantiate this facility will be significantly used during the 8 months of the year. Additionally, Councilmember Sanger stated the city never informed the public that the price had increased significantly on this project. She added the city council had scheduled another meeting to vote on the project but did not allow for public feedback at that time. She is concerned this was very different from the way the city normally gathers public feedback and added that the city owes the residents of this community an apology. She also stated she was out of the country during the time of that meeting, but would have voted no on the proposal. However, Councilmember Sanger stated she will support the bonding because the city could face legal issues and financial penalties if the contract was cancelled. She stated she would not want to jeopardize the city’s AAA rating. Even though she does not agree with the project, it is more important to protect the city, and added it would be irresponsible to vote no. Councilmember Sanger stated she will reluctantly support the bond sale. Councilmember Mavity stated she did not support this project at first, but will support the financing proposal tonight, as it is the will of the council to approve this project. She also wants to protect the city’s good credit rating and wants to look forward to make sure the city gets the best project possible, and what is best and most cost effective for all residents. Councilmember Mavity stated she takes exception with Councilmember Sanger’s comments and said this was not nefarious. She noted all public meetings on this topic were posted and there was robust conversation. She stated she received 40-50 emails from the public and it was a very transparent process. Councilmember Brausen thanked his colleagues for supporting the bonding proposal, even though they don’t support the project. He noted after all the study sessions and retreats on this topic, he feels it is a valuable reinvestment in the community and he will support this item. Councilmember Hallfin stated this project is like other past projects, where upgrades have been made in twenty-year intervals. He sees this as the right thing to do for the city and an upgrade for the Rec Center – one of the signature buildings in St. Louis Park. He said he is bothered by these same grievances, and construction has already begun on the project. He disagreed with the opinion that consideration of the project was not conducted as a public process, adding the bonding is a prudent way to pay for this project and he will support it. Councilmember Lindberg stated the facts and staff report are clear. The issuance of these bonds will provide financing at a rate less than inflation. He pointed out the Hockey Association contributed close to $2 million towards this project. He supports this project City Council Meeting of June 20, 2016 (Item No. 3a) Page 8 Title: City Council Meeting Minutes of May 16, 2016 and takes great offense with comments implying that this project flies in the face of what the city is trying to do for racial equity in St. Louis Park. He added he trusts city staff and Park and Recreation to make use of this facility the other eight months out of year. He stated a vast majority of residents approved of this project, and the public process was alive and well throughout. Mayor Spano stated this project is supported by Parks and Recreation, and the financing is no different from what was done for Oak Hill Park and Fern Hill Park, along with donations and city contributions. He added there are people already booking the new space for multiple uses, and it is not fair to classify the hockey program as a white, middle class, male program. There are many children who participate in hockey who are on scholarship, and if we want more kids of color to participate, as well as girls, we need more facilities, not fewer. Mayor Spano stated he supports this item. It was moved by Councilmember Hallfin, seconded by Councilmember Brausen, to waive the reading and adopt Resolution No. 16-070 Providing for the Sale of $10,000,000 General Obligation Bonds, Series 2016A. The motion passed 6-1. (Councilmember Miller opposed). 8f. Approval of Reimbursement Resolution for Rec Center Projects. Resolution No. 16-071 It was moved by Councilmember Hallfin, seconded by Councilmember Lindberg, to waive the reading and adopt Resolution No. 16-071 Declaring the Official Intent of the City of St. Louis Park to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City. The motion passed 7-0. 9. Communications Councilmember Hallfin noted the Children First Ice Cream Social held this past weekend had a great turnout and photos were posted on social media. Councilmember Miller invited the community to the Bike to Work Day Event. Bikers will meet at the Rec Center, 7:30 a.m. on Friday, May 20th. Mayor Spano invited all to a fundraiser at St. Louis Park High School on Friday, May 20, 10 a.m. – 12 noon, featuring author Tom Friedman. Tickets are available on the St. Louis Park Schools Foundation website. 10. Adjournment The meeting adjourned at 9:00 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Jake Spano, Mayor Meeting: City Council Meeting Date: June 20, 2016 Consent Agenda Item: 4a EXECUTIVE SUMMARY TITLE: Second Amendment to the Preliminary Development Agreement with PLACE RECOMMENDED ACTION: Motion to Adopt Resolution approving the Second Amendment to the Preliminary Development Agreement with PLACE. POLICY CONSIDERATION: Does the Council wish to amend its Preliminary Development Agreement with PLACE to include the five parcels owned by the City and Hennepin County Regional Rail Authority immediately south of the proposed Wooddale LRT station? SUMMARY: On May 18, 2015, the EDA and City entered into a Preliminary Development Agreement (PDA) with PLACE. The agreement outlines the parties’ respective roles and responsibilities in order to cooperatively bring a potential mixed use redevelopment to fruition at the SE quadrant of Hwy 7 and Wooddale Ave. It also provides PLACE with exclusive rights to negotiate acquisition of the properties on the north side of the Wooddale LRT station with the EDA and City. On February 16, 2016, the EDA and City approved a First Amendment extending the term of the PDA until February 28, 2017. At the June 6, 2016 Special Study Session, there was consensus support for allowing PLACE to prepare redevelopment plans encompassing the properties on both the north and south sides of the proposed Wooddale LRT station for traffic management purposes. The subject property south of the station includes three parcels owned by the City, located at 3575 Wooddale Avenue, 5814 36th Street, and 5816 36th Street (along with vacated right-of-way) and two parcels owned by the Hennepin County Regional Rail Authority, located at 3565 Wooddale Avenue (leased to Nash Frame) and a portion of 3548 Xenwood Avenue. Staff is working with Hennepin County staff to have the Rail Authority parcels conveyed to the City with the expectation they would subsequently be sold to PLACE. PLACE has requested that the Preliminary Development Agreement be amended to include the five City/Rail Authority properties south of the proposed Wooddale LRT Station. The amendment is necessary to provide PLACE’s funding partners with continued assurance of its ability to secure the subject properties for the proposed redevelopment. It is the expectation of all parties that a formal Purchase and Redevelopment Contract could be reached by the extended termination date. FINANCIAL OR BUDGET CONSIDERATION: Under the proposed Second Amendment, PLACE remains obligated to reimburse the EDA for all out-of-pocket costs it incurs in connection with review and analysis of the proposed Development prior to the extended termination date. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Resolution of Approval Second Amendment Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director Approved by: Tom Harmening, EDA Executive Director and City Manager City CouncilMeeting of June 20, 2016 (Item No. 4a) Page 2 Title: Second Amendment to the Preliminary Development Agreement with PLACE CITY OF ST. LOUIS PARK RESOLUTION NO. 16-____ RESOLUTION APPROVING A SECOND AMENDMENT TO THE PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF ST. LOUIS PARK, AND PLACE BE IT RESOLVED BY the City Council (the “Council”) of the City of St. Louis Park, Minnesota (the “City”) as follows: Section 1. Recitals. 1.01. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082, as amended, the St. Louis Park Economic Development Authority (the “Authority”) administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment of certain substandard property within the Project. 1.02. The City and the Authority own certain property (the “Property”) within the Project, which Property has been the subject of certain preliminary negotiations with PLACE (the “Developer”) for purposes of constructing a mixed-use (multi-family residential and commercial), mixed-income development on the Property and related parking, incorporating renewable energy sources including an anaerobic digester (the “Development”). 1.03. The City, the Authority, and the Developer previously executed a Preliminary Development Agreement, dated as of May 18, 2015 (the “Agreement”), providing for the performance of certain activities on the part of the parties in preparation for the negotiation of a definitive Contract for Private Redevelopment in connection with the Property; and subsequently executed a First Amendment to the Agreement dated as of February 16, 2016 (the “First Amendment”) to extend the deadline for the completion of these preliminary activities for a period of twelve months. 1.04. The parties have negotiated and propose to execute a Second Amendment to the Agreement (the “Second Amendment”) in order to expand the Property to include three additional parcels owned by the City and two additional parcels owned by the Hennepin County Regional Rail Authority (the “Additional Parcels”). Section 2. Second Amendment Approved. 2.01. The Second Amendment as presented to the Council is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Manager, provided that execution of the Second Amendment by such officials shall be conclusive evidence of approval. City CouncilMeeting of June 20, 2016 (Item No. 4a) Page 3 Title: Second Amendment to the Preliminary Development Agreement with PLACE 2.02. The Mayor and City Manager are hereby authorized to execute on behalf of the City the Second Amendment and any documents referenced therein requiring execution by the City, and to carry out, on behalf of the City, its obligations thereunder. 2.03. City staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration: Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City CouncilMeeting of June 20, 2016 (Item No. 4a) Page 4 Title: Second Amendment to the Preliminary Development Agreement with PLACE SECOND AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT THIS SECOND AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT (this “Agreement”), dated June 20, 2016, by and between the St. Louis Park Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), the City of St. Louis Park, a Minnesota municipal corporation (the “City”), and PLACE, a Minnesota nonprofit corporation (the “Developer”); WITNESSETH: WHEREAS, the Authority, the City, and Developer previously entered into a Preliminary Development Agreement dated as of May 18, 2015, as amended by a First Amendment thereto dated as of February 16, 2016 (as so amended, the “Initial Agreement”), to promote development of certain property within Redevelopment Project No. 1 (the “Project”) in the City, located at 5725, 5925 and 5815 Highway 7 (the “City and Authority Property”) and 3520 Yosemite Avenue (the “Rail Property” and together with the City and Authority Property, the “Property”); and WHEREAS, the Property subject to the Initial Agreement is made up of four parcels, of which the City and Authority Property is owned by the City or the Authority, and the Rail Property is owned by the Hennepin County Regional Rail Authority (the “Rail Authority”); and WHEREAS, the parties desire to expand the Property to include three additional parcels owned by the City, located at 3575 Wooddale Avenue, 5814 36th Street, and 5816 36th Street (along with certain right-of-way to be vacated and accrued to these parcels) (the “Additional City Parcels”), and to include two additional parcels owned by the Rail Authority, located at 3565 Wooddale Avenue and a portion of 3548 Xenwood Avenue (the “Additional Rail Parcels”). NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the Authority, the City and the Developer hereby agree as follows: 1. During the term of this Second Amendment, the parties agree to continue working cooperatively toward the goals outlined in the Initial Agreement, pursuant to its terms. 2. The Property subject to the Initial Agreement, as amended by this Second Amendment, is expanded to include the Additional City Parcels. In addition, the City and Authority will attempt in good faith to acquire the Additional Rail Parcels, and if such Additional Rail Parcels are so acquired, the Property will be expanded to include the Additional Rail Parcels. 3. This Second Amendment shall terminate by its terms if the governing bodies of the Authority and City have not approved the Contract (as defined in the Initial Agreement) by February 28, 2017. Upon such termination, the Developer remains obligated to pay any costs payable under paragraph 13 of the Initial Agreement that were incurred by the Authority and the City prior to such date. 4. Except as amended by this Second Amendment, the Initial Agreement shall remain in full force and effect. Upon execution, the Developer shall reimburse the Authority for all out-of pocket- costs incurred by the Authority in connection with negotiating, drafting and approval of this Second Amendment. City CouncilMeeting of June 20, 2016 (Item No. 4a) Page 5 Title: Second Amendment to the Preliminary Development Agreement with PLACE IN WITNESS WHEREOF, the City and Authority have caused this Agreement to be duly executed in their name and behalf and their seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the date and year first above written. PLACE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By: Its ______________________________ Its President Its Executive Director CITY OF ST. LOUIS PARK Its Mayor Its City Manager Meeting: City Council Meeting Date: June 20, 2016 Consent Agenda Item: 4b EXECUTIVE SUMMARY TITLE: Zarthan Avenue South Vacation RECOMMENDED ACTION: Motion to approve the Second Reading and Adopt Ordinance vacating right-of-way, and to approve the ordinance summary for publication. POLICY CONSIDERATION: None at this time. SUMMARY: City staff is requesting the vacation of the right-of-way for the purpose of preparing the right-of-way and adjacent city owned land for future redevelopment. The city has not committed to a redevelopment project at this time, however, the property is anticipated to redevelop upon completion of the light rail transit project. The right-of-way is not needed for public purposes, therefore, it can be vacated and combined with the adjacent properties. The city owns the adjacent properties to the west and east of the subject right-of-way, so it will receive the majority of the land. A small piece of the right-of-way at the north end will go to the Hennepin County Regional Rail Authority because it owns the property located at the north end of the right-of-way. A public hearing was conducted by the city council on June 6, 2016, and no comments were received from the public. At that time the Council unanimously approved first reading of the ordinance. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Ordinance Summary Ordinance for Publication Right-of-Way Vacation Exhibit Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item No. 4b) Page 2 Title: Zarthan Avenue South Vacation ORDINANCE NO.____-16 AN ORDINANCE VACATING ZARTHAN AVENUE SOUTH RIGHT-OF-WAY LYING NORTH OF 36TH STREET WEST THE CITY OF ST. LOUIS PARK DOES ORDAIN: Section 1. The petition to vacate the right-of-way was initiated by the City. The City is the owner of the majority of all properties abutting upon both sides of the right-of-way proposed to be vacated. The notice of said petition has been published in the St. Louis Park Sun Sailor on May 26, 2016, and the City Council has conducted a public hearing upon said petition and has determined that the right-of-way is not needed for public purposes, and that it is for the best interest of the public that said right-of-way be vacated. Section 2. The following described right-of-way as now dedicated and laid out within the corporate limits of the City of St. Louis Park, is vacated: All that part of Earle St., aka Zarthan Ave., dedicated by the “Plat of St. Louis Park”, according to the plat thereof on file and of record in the office of the Hennepin County Registrar of Titles, lying northerly of Highland Ave., aka 36th St., and southerly of the westerly extension of the north line of the alley situated in Block 29, “Plat of St. Louis Park”. Section 3. The City Clerk is instructed to record certified copies of this ordinance in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Section 4. This Ordinance shall take effect fifteen days after its publication. Reviewed for Administration Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to Form and Execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney Public Hearing/First Reading June 6, 2016 Second Reading June 20, 2016 Date of Publication June 30, 2016 Date Ordinance takes effect July 15, 2016 City Council Meeting of June 20, 2016 (Item No. 4b) Page 3 Title: Zarthan Avenue South Vacation SUMMARY ORDINANCE NO.____-16 AN ORDINANCE VACATING ZARTHAN AVENUE SOUTH RIGHT-OF-WAY This ordinance states that Zarthan Avenue South right-of-way lying north of 36th Street West will be vacated. This ordinance shall take effect 15 days after publication. Adopted by the City Council June 20, 2016 Jake Spano /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: June 30, 2016 City Council Meeting of June 20, 2016 (Item No. 4b) Page 4 Title: Zarthan Avenue South Vacation Right-of-Way Vacation Exhibit: Meeting: City Council Meeting Date: June 20, 2016 Consent Agenda Item: 4c EXECUTIVE SUMMARY TITLE: Designate Polling Places and Appoint Election Judges for 2016 Elections RECOMMENDED ACTION: Motion to Adopt Resolution designating 2016 polling places and appointing Election Judges for the August 9, 2016, State Primary Election and the November 8, 2016, Presidential General Election. POLICY CONSIDERATION: None SUMMARY: MN Statute 204B.21, Subd. 2 and City Charter Section 4.05 provide that Election Judges for precincts shall be appointed by the governing body of the municipality and that the appointments be made at least 25 days before the election at which the Election Judges will serve. Election Judges are assigned to precincts based on availability, party balance requirements, and the number required for each location to adequately serve voters. Election Judges are also allowed to serve without affiliation to a major political party, but may be exempt from performing certain tasks at the precinct. The resolution contains the names of those who have indicated a willingness and ability to serve as an Election Judge. Appointment by the City Council will allow judges to serve at both of the 2016 Elections. St. Louis Park will again be working with the city’s two senior high schools to recruit Student Election Judges for the November Presidential Election. Another resolution will be presented to Council in September to appoint additional Election Judges and Student Judges for the November Election. This year, Hennepin County is planning to implement the use of electronic poll books. This is an exciting and welcome change meant to increase efficiency at the polls and to provide an enhanced experience to our voters. The Clerk’s Office will provide additional training on this equipment for all Election Judges. All Election Judges will be required to attend two training sessions – one equipment training and one forms & procedures training. The Clerk’s Office will offer these sessions in June-July and in September-October. Also, four informative open houses for the public on the use of e-poll books have been scheduled – two before the Primary Election and two before the General Election. FINANCIAL OR BUDGET CONSIDERATION: Election expenses for judges are included in the adopted 2016 budget. Election Judge hourly pay is as follows: $9.00 regular Election Judges; $10.00 Absentee Ballot Judges; $10.00 Co-Chair Judges; $11.00 Chair Judges. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Resolution Prepared by: Kay Midura, Assistant – City Clerk’s Office Reviewed by: Melissa Kennedy, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item 4c) Page 2 Title: Designate Polling Places and Appoint Election Judges for 2016 Elections RESOLUTION NO. 16 -____ RESOLUTION DESIGNATING POLLING PLACES AND APPOINTING ELECTION JUDGES FOR THE PRIMARY AND GENERAL ELECTIONS OF 2016 WHEREAS, the Primary and General Elections will be held on August 9, 2016, and November 8, 2016, respectively at the following precinct polling locations: Ward 1 Precinct 1 – Beth El Synagogue, 5225 Barry St. W. Ward 1 Precinct 2 – Peter Hobart Elementary School, 6500 26th St. W. Ward 1 Precinct 3 – St. Louis Park City Hall, 5005 Minnetonka Blvd. Ward 1 Precinct 4 – Central Community Center, 6300 Walker St. Ward 2 Precinct 5 – Union Congregational Church, 3700 Alabama Ave. S. Ward 2 Precinct 6 – St. Louis Park Recreation Center, 3700 Monterey Dr. Ward 2 Precinct 7 – Susan Lindgren Elementary School, 4801 W 41st St Ward 2 Precinct 8 – Aldersgate United Methodist Church, 3801 Wooddale Ave S Ward 3 Precinct 9 – Prince of Peace Lutheran Church, 8115 State Hwy. No. 7 Ward 3 Precinct 10 – Lenox Community Center, 6715 Minnetonka Blvd. Ward 3 Precinct 11 – St. Louis Park Senior High School, 6425 33rd St. W. Ward 3 Precinct 12 – Aquila Elementary School, 8500 31st St. W. Ward 4 Precinct 13 – Westwood Lutheran Church, 9001 Cedar Lake Road Ward 4 Precinct 14 – Park Assembly Church, 1615 Texas Ave. S. Ward 4 Precinct 15 – Peace Presbyterian Church, 7624 Cedar Lake Road Ward 4 Precinct 16 – St. Louis Park Middle School, 2025 Texas Ave. S. WHEREAS, as authorized by MN Statute 204B.21, Subd. 2, Election Judges for precincts shall be appointed by the governing body of the municipality no later than 25 days before each election; and NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council that the following individuals named on Exhibit A and on file in the Office of the City Clerk are hereby appointed to serve as Election Judges, Absentee Ballot Board Judges, or Alternate Judges for the 2016 Primary and General Elections; and BE IT FURTHER RESOLVED, the St. Louis Park City Council also appoints other individuals and all members appointed to the Hennepin County Absentee Ballot Board as authorized under Minn. Stat. 204B.21, subd. 2 under direction of the Elections Manager to serve as members of the St. Louis Park Absentee Ballot Board; and BE IT FURTHER RESOLVED, the City Clerk is with this, authorized to make any substitutions or additions as deemed necessary. Reviewed for Administration: Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City Council Meeting of June 20, 2016 (Item 4c) Page 3 Title: Designate Polling Places and Appoint Election Judges for 2016 Elections Resolution No. 16 - ___ Exhibit A Appointed 2016 Election Judges The following individuals are appointed to serve in the 2016 State Primary and the General Presidential Election. WARD 1 1-1, Beth El Synagogue Carper Irving Doescher Jill Enz Mary - Chair Feldman Pam Huiras Shirley – Co-Chair Israel Joseph Osfar Barb Ruttger Theresa Schwartz Mark 1-2, Peter Hobart Elementary School Ahrens Jane Casey Dianne Kloehn Katherine Marek Margaret - Chair Nash Barbara Pappone Carol Pflipsen Gloria Rotert David Scott Ariann Slager Eunice – Co-Chair 1-3, City Hall Barbo Barbara Dolan Ziff Lillian Erickson Julie Finnerud Heidi Grimes Marie Maynard Mary - Chair Olson Ann – Co-Chair Virum Barb 1-4, Central Community Center Becker Donald Cook Judith Erwin Phillip Lochan Shammi – Co-Chair Malcomson Nanette - Chair Martin Paul Pelowitz Julie Schwartz Lynn WARD 2 2-5, Union Congregational Church Berger Bernadette Cox Laura Drache Kay - Chair Dubey Karla Held Michael Murman Gloria Nevermann Eric Richards David – Co-Chair Uhrig-Fox Dana 2-6, St. Louis Park Rec Center Dworsky Richard Gormley Tim Hanlon Olga Hanson A. Stuart Kertes Anne Larson David - Chair Litman Brendalee Mainella Heather Richards Margie Roberts Martha Woodbeck Sheila Wuebker Debra – Co-Chair 2-7, Susan Lindgren Elementary School Botner Loren - Chair Hansen Steven Ingram Terry Johnston-Madison Claudia Manuel Eric Quinn Clara Showalter Joy Solmer Henry – Co-Chair Tursich Ernest 2-8, Aldersgate United Methodist Church Bue Priscilla Cox JoAnn Gale Roberta Grose Kathy Konopliv Kari Lilla Amy Lochan Mary Jo – Co-Chair Manuel Julie - Chair Stapleton Kris City Council Meeting of June 20, 2016 (Item 4c) Page 4 Title: Designate Polling Places and Appoint Election Judges for 2016 Elections WARD 3 3-9, Prince of Peace Lutheran Church Carlson Donna Evers Carol Justesen Kimball – Co-Chair Ness Donna Rainey William Rung Elizabeth Soucheray Mary (Gina) Tape William - Chair 3-10, Lenox Community Center Adams Judith Gerhardson Joan Lee Martin – Co-Chair Levin Carolyn Mueller Denise Shapiro Judy - Chair Witthuhn Jennifer Wyles Roz 3-11, St. Louis Park Senior High School Adams Ronald Benson Janet – Co-Chair Buda Jacqueline Jacobs John Mann Peg Mattison Susanne Schmit Francis Serrell Judith - Chair Thompson Jack 3-12, Aquila Elementary School Adler Todd - Chair Dunn Sally Anne Flynn Jean Huiras Ken Kosar Jose – Co-Chair Lindblad Barbara Miatech Joseph Nachtwey Steve Schaefer John Simmons Judy Stanchfield Sherm WARD 4 4-13, Westwood Lutheran Church Berkovitz Gary Fischels Angela - Chair Hines Linda Metzker Kathy – Co-Chair Obert Mary Person Rick Secor Karen Sincheff Mary Stevens Jeanne Wells Frank 4-14, Park Assembly Church Bleecker Arlene Bryan Vincent Cahill John Grose Lawrence - Chair Hendrix Mary Kalk Todd Palkowitsh Donna Peiper Forrest Person Barb Plovnick Ross – Co-Chair Spiden Deanna Urness Gay 4-15, Peace Presbyterian Church Brunner Lorne Johnson Christine Kremer Patricia Martens Brenda Petermeier Josie Ruhl Barbara Ruth Roger - Chair Savick Elaine Struxness Richard – Co-Chair White John 4-16, St. Louis Park Middle School Brehmer David - Chair Erickson Richard Haight Suzanne Huebner Jeff – Co-Chair Madson Alison Marske Ava Weaver Julie City Council Meeting of June 20, 2016 (Item 4c) Page 5 Title: Designate Polling Places and Appoint Election Judges for 2016 Elections Absentee Ballot Board Judges Danovsky Melonie Hendrix Mary Jacobs Josephine Stehly Katherine Stroth Nancy Tangney Alice Wickersham Mary Wuebker Debra Alternate Election Judges Berthene Sandra Lykken Laurie Smith Esther Thornsjo Lucille Turk Carolyne Election Judges Appointed for the General Election Only Aune Kimberly Bagne Amy Bergquist Rogene Blumenthal Karen Bobence Amy Brimeyer James Bulman Karmit Butterbaugh Laura Davis Patricia Desens Helen Dyste Cynthia Ellingsberg Gay Ann Feda Martha Flannigan Jane Googins Duane Johnson Mary Johnson Sandra Krause Marguerite Lamon Leah Levin Trina Lorenz Rochelle Lyon Sharon Martinez Rita Mattson Katrina McElroy Katie McKay Kathy Metcalf Kathy Miller Gail Myers Lori Peltier Kay Rice Martha Rog Margaret Rosengren Kate Saxl Susi Thorne Rich Willhite Suzann Yannie Patricia Meeting: City Council Meeting Date: June 20, 2016 Consent Agenda Item: 4d EXECUTIVE SUMMARY TITLE: Resolution Authorizing Submission of Grant Applications RECOMMENDED ACTION: Motion to Adopt Resolutions authorizing the submission of grant applications as part of the Metropolitan Council Regional Solicitations process. 1) Dakota-Edgewood Trail Bridge Crossing 2) CSAH 25/Beltline Pedestrian Improvements POLICY CONSIDERATION: These improvements are consistent with the City Council’s adopted Connect the Park plan, as well as the Transitional Station Area Action Plan (TSAAP) for the Beltline Station along the Southwest LRT corridor. SUMMARY: Staff has continued implementation of the Connect the Park! Sidewalk, trail and bikeway system plan. In addition, the TSAAP for the Beltline Station vicinity include recommendations to develop pedestrian enhancements in the Beltline Boulevard area. The City will also be initializing a corridor study for CSAH 25 between Highway 100 and France Avenue later in 2016. The Metropolitan Council has started the biennial Regional Solicitation process which helps distribute Federal funding to locally-initiated projects in the metro area for regional transportation projects to be built in the 2019 time period. From a competiveness standpoint staff is recommending applications for the following two projects: 1) A non-motorized trail bridge over the BNSF railroad to connect Dakota Avenue and Edgewood Avenue. 2) Various pedestrian, streetscape, and at-grade pedestrian crossing improvements around the Southwest LRT Beltline Station. Staff has hired the consultant firm of WSB & Associates to help with concept engineering and grant writing necessary for the application submittal. The application is due to the Metropolitan Council by July 15, 2016. FINANCIAL OR BUDGET CONSIDERATION: Passing these resolutions will enable the City to apply for up to $5.5 million for the trail bridge project, and up to $1.0 million for the pedestrian improvements project. The City is responsible for 20 percent of the eligible project construction costs, as well as engineering. General obligation bonds are currently budgeted for the “Connect the Park!” and will be used as the City’s financial commitment to the construction projects. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Resolutions Project Map of Dakota-Edgewood Trail Bridge Crossing Project Map of CSAH25/Beltline Pedestrian Improvements Prepared by: Chris Iverson, Transportation Engineer Reviewed by: Deb Heiser, Engineering Director Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item No. 4d) Page 2 Title: Resolution Authorizing Submission of Grant Applications RESOLUTION NO. 16-____ RESOULTION AUTHORIZING SUBMITTAL OF A GRANT APPLICATION TO THE REGIONAL SOLICITATION FOR THE DAKOTA-EDGEWOOD TRAIL BRIDGE CROSSING WHERAS, The Metropolitan Council coordinates applications and distributes Federal funds through the Regional Solicitation; and WHERAS, the City Council of St. Louis Park unanimously adopted the 10-year “Connect the Park!” Initiative to add additional sidewalk, trails, bike lanes, and bikeways throughout the community over the next 10 years; and WHERAS, the City Council of St. Louis Park approved the updated Capital Improvement Plan which lists the Dakota-Edgewood Trail Bridge Crossing to be constructed in 2019; and WHERAS, the Dakota-Edgewood Trail Bridge Crossing is a critical component of the “Connect the Park!” Plan as it provides access to the North Cedar Lake Regional Trail, Hobart Elementary School, Dakota Park, and various neighborhood areas in St. Louis Park NOW, THEREFORE, BE IT RESOLVED that the City Council of St. Louis Park supports the Regional Solicitation application to the Metropolitan Council by the City of St. Louis Park for the Dakota-Edgewood Trail Bridge Crossing and that the Council accepts the responsibility for an amount equal to or greater than 20 percent of the eligible project construction costs, together with costs for design, administration or other soft costs. Reviewed for Administration: Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City Council Meeting of June 20, 2016 (Item No. 4d) Page 3 Title: Resolution Authorizing Submission of Grant Applications RESOLUTION NO. 16-____ RESOULTION AUTHORIZING SUBMITTAL OF A GRANT APPLICATION TO THE REGIONAL SOLICITATION FOR THE CSAH25/BELTLINE PEDESTRIAN IMPROVEMENTS PROJECT WHERAS, The Metropolitan Council coordinates applications and distributes Federal funds through the Regional Solicitation; and WHERAS, the Southwest LRT Community Works program and Hennepin County completed Transitional Station Area Action Plan (TSAAP) for the Beltline Station in December 2013; and WHERAS, the TSAAP recommends implementing pedestrian improvements along Beltline Boulevard, CSAH 25, and various streets around the Beltline Station area; and WHERAS, pedestrian improvements in the Beltline Station area are critical components to enhance the Southwest LRT corridor as it will provide safe, affordable, and environmentally- friendly transportation options to residential areas, employment centers, and entertainment districts throughout the region NOW, THEREFORE, BE IT RESOLVED that the City Council of St. Louis Park supports the Regional Solicitation application to the Metropolitan Council by the City of St. Louis Park for the CSAH25/Beltline Pedestrian Improvements project and that the Council accepts the responsibility for an amount equal to or greater than 20 percent of the eligible project construction costs, together with costs for design, administration or other soft costs. Reviewed for Administration: Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk CEDAR LAKE ROAD EDGEWOOD AVE SLEGEND Bridge Trail / Walk City Council Meeting of June 20, 2016 (Item No. 4d) Title: Resolution Authorizing Submission of Grant Applications Page 4 T117R21 S9 T29 R24S31 T29 R24S32 T117R21 S16 T28R24 S6 T28R24 S5 T117R21 S21 T28R24 S7 T28R24 S8 Metropolitan Council Document Path: K:\Personal\Andy Hingeveld\Regional Solicitation\St Louis Park BeltlineCSAH 25 Map.mxdBeltline Blvd & CSAH 25Pedestrian Improvements Grant Application City of St. Louis Park Hennepin County Ü Metropolitan Council 0 925 1,850462.5 Feet Proposed PedestrianImprovements along Beltline Blvd, CSAH 25, and Lynn Ave GzWX GdWX Twin Cities Metro Area Legend Section Line Beltline LRT Station (planned) ?úA@ ?«A@ Minnetonka Blvd GbWX Lynn Ave SBeltline BlvdCity Council Meeting of June 20, 2016 (Item No. 4d) Title: Resolution Authorizing Submission of Grant Applications Page 5 Meeting: City Council Meeting Date: June 20, 2016 Action Agenda Item: 8a EXECUTIVE SUMMARY TITLE: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects RECOMMENDED ACTION: Motion to Adopt Resolution Awarding the Sale of General Obligation Bonds, Series 2016A. (The recommended action will require approval by at least 4 of the 7 City Councilmembers). POLICY CONSIDERATION: Is the recommended bid in keeping with the expectations of the City Council? SUMMARY: On May 16, 2016 the City Council authorized the sale of $10,000,000 General Obligation Bonds, Series 2016A for the Indoor/Outdoor Rec Center Projects. On June 1, City staff conducted a credit review with Standard and Poor’s. On June 14th Standard and Poor’s affirmed the city’s AAA rating with a stable outlook. The competitive bids for the bonds will be received and tabulated by the City’s municipal advisor, Ehlers & Associates, Inc. on Monday, June 20th at 11:00 am. Ehlers and City staff will present the competitive bids received to the City Council at the June 20th Council meeting. FINANCIAL OR BUDGET CONSIDERATION: The 11 year bond issue will have its first interest payment on 2/1/17 paid from capitalized interest from the bond issue, with the first principal payment due 2/1/18. The Charter Bonds debt service will be paid via tax levy beginning in pay 2017 in the amount of approximately $613,205.25, with the remaining years tax levy being approximately $1,230,000 per year. This structure is designed to spread the debt service levy increase over the course of two years. NEXT STEPS: June 20, 2016 – Award Sale of Series 2016A G.O. Bonds July 14, 2016 – Close on the Bonds – No City Council action required VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Resolution Standard and Poor’s Credit Rating Report Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item No. 8a) Page 2 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects Extract of Minutes of Meeting of the City Council of the City of St. Louis Park, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Louis Park, Minnesota, was duly held in the City Hall in said City on Monday, June 20, 2016, commencing at 7:30 P.M. The following members were present: and the following were absent: * * * * * * * * * The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City’s General Obligation Bonds, Series 2016A, to be issued in the original aggregate principal amount of $________. The City Manager presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in EXHIBIT A attached. After due consideration of the proposals, Member ___________ then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: City Council Meeting of June 20, 2016 (Item No. 8a) Page 3 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects RESOLUTION NO. 16-_____ A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION BONDS, SERIES 2016A, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $________; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of St. Louis Park, Hennepin County, Minnesota (the “City”) as follows: Section 1. Sale of Bonds. 1.01. Background. (a) Pursuant to Section 6.15 of the City Charter (the “Charter”) and Minnesota Statutes, Chapter 475, as amended (the “Act”), the City is authorized to issue general obligation bonds for any purpose permitted by state law upon a vote of at least six (6) members of the City Council. (b) The City has determined to finance the construction of improvements to the City’s ice arena and outdoor recreation facilities (the “Capital Project”), and on May 16, 2016, the City authorized the issuance of general obligation bonds for the Capital Project by a vote of 6-1. (c) It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Bonds, Series 2016A (the “Bonds”), in the original aggregate principal amount of $________, pursuant to the Act and the City Charter, in order to provide financing for the Capital Project. (d) The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate the sale of the Bonds, it being determined that the City has retained an independent financial advisor in connection with such sale. The actions of the City staff and municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects. 1.02. Award to the Purchaser and Interest Rates. The proposal of ______________ (the “Purchaser”) to purchase the Bonds is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $_________ (par amount of $________, [plus original issue premium of $________,] [less original issue discount of $________,] less underwriter’s discount of $_________), plus accrued interest to date of delivery, if any, for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2018 % 2023 % 2019 2024 2020 2025 2021 2026 2022 2027 True interest cost: ______________% City Council Meeting of June 20, 2016 (Item No. 8a) Page 4 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects 1.03. Purchase Contract. The amount proposed by the Purchaser in excess of the minimum bid shall be credited to the Debt Service Fund hereinafter created or deposited in the Construction Fund hereinafter created, as determined by the City Controller in consultation with the City’s municipal advisor. The City Controller is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the Act, in the total principal amount of $________, originally dated July 14, 2016, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2018 $ 2023 $ 2019 2024 2020 2025 2021 2026 2022 2027 1.05. Optional Redemption. The City may elect on February 1, 2024, and on any day thereafter to prepay Bonds due on or after February 1, 2025. 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 will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) 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. Prepayments will be at a price of par plus accrued interest. [1.06. Mandatory Redemption; Term Bonds. To be completed if Term Bonds are requested by the Purchaser.] Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2017, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. City Council Meeting of June 20, 2016 (Item No. 8a) Page 5 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner’s attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory City Council Meeting of June 20, 2016 (Item No. 8a) Page 6 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints Bond Trust Services Corporation, Roseville, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days’ notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this City Council, the City Controller must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in EXHIBIT B attached hereto with such changes as may be necessary to reflect more than one maturity in a single temporary City Council Meeting of June 20, 2016 (Item No. 8a) Page 7 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form set forth in EXHIBIT B. 3.02. Approving Legal Opinion. The City Manager is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Bonds, Series 2016A Debt Service Fund (the “Debt Service Fund”) hereby created. The Debt Service Fund shall be administered and maintained by the City Controller as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The City Controller shall timely deposit in the Debt Service Fund the ad valorem taxes levied hereunder (the “Taxes”) and allocated to the payment of debt service on the Bonds, which Taxes are pledged to the Debt Service Fund. There is also appropriated to the Debt Service Fund (i) capitalized interest financed from the proceeds of the Bonds, if any; and (ii) amounts over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.05 hereof. 4.02. Construction Fund. The City hereby creates the General Obligation Bonds, Series 2016A Construction Fund (the “Construction Fund”). Proceeds of the Bonds, less the appropriations made in Section 4.01, together with Taxes and any other funds appropriated for the Capital Project collected during the construction of the Capital Project, will be deposited in the Construction Fund to be used solely to defray expenses of the Capital Project and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Capital Project. When the Capital Project is completed and the cost thereof paid, the Construction Fund is to be closed and any funds remaining may be deposited in the Debt Service Fund. 4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance is available therein. 4.04. Pledge of Taxes. For the purpose of paying the principal of and interest on the Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the City, which will be spread upon the tax rolls and collected with and as part of other general taxes of the City. The Taxes will be credited to the Debt Service Fund above provided and will be in the years and amounts as attached hereto as EXHIBIT C. City Council Meeting of June 20, 2016 (Item No. 8a) Page 8 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects 4.05. Certification to Taxpayer Services Division Manager as to Debt Service Fund Amount. It is hereby determined that the estimated collection of the foregoing Taxes will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the City Controller may certify to the Taxpayer Services Division Manager of Hennepin County, Minnesota (the “Taxpayer Services Division Manager”) the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the Taxpayer Services Division Manager will thereupon reduce the levy collectible during such year by the amount so certified. 4.06. Registration of Resolution. The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager and to obtain the certificate required by Section 475.63 of the Act. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Manager, and the City Controller are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Other Certificates. The Mayor, the City Manager, and the City Controller are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City Manager, and the City Controller shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the City Controller shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 5.04. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to KleinBank, Chaska, Minnesota on the closing date for further distribution as directed by the City’s municipal advisor, Ehlers & Associates, Inc. Section 6. Tax Covenant. 6.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees City Council Meeting of June 20, 2016 (Item No. 8a) Page 9 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. Rebate. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States. 6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be “private activity bonds” within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. Not Qualified Tax-Exempt Obligations. The City shall not designate the Bonds as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code. 6.05. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entry System; Limited Obligation of City. 7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums City Council Meeting of June 20, 2016 (Item No. 8a) Page 10 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede & Co.” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the “Representation Letter”) which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and all notices with respect to the Bond will be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate” means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. Section 9. Defeasance. When all Bonds and all interest thereon have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the City Council Meeting of June 20, 2016 (Item No. 8a) Page 11 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank) City Council Meeting of June 20, 2016 (Item No. 8a) Page 12 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects The motion for the adoption of the foregoing resolution was duly seconded by Member _____________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Reviewed for Administration: Adopted by the City Council June 20th 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City Council Meeting of June 20, 2016 (Item No. 8a) Page 13 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects EXHIBIT A PROPOSALS City Council Meeting of June 20, 2016 (Item No. 8a) Page 14 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects EXHIBIT B FORM OF BOND No. R-_____ UNITED STATES OF AMERICA $_________ STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF ST. LOUIS PARK GENERAL OBLIGATION BOND SERIES 2016A Rate Maturity Date of Original Issue CUSIP February 1, 20__ July 14, 2016 Registered Owner: Cede & Co. The City of St. Louis Park, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $__________ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing February 1, 2017, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Bond Trust Services Corporation, Roseville, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2024, and on any day thereafter to prepay Bonds due on or after February 1, 2025. 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 will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company (“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. Prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $________ all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 20, 2016 (the “Resolution”), for the purpose of providing money to aid in financing certain capital projects in the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in City Council Meeting of June 20, 2016 (Item No. 8a) Page 15 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects taxes pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. The City Council has not designated the issue of Bonds of which this Bond forms a part as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, charter, or statutory limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of St. Louis Park, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: July 14, 2016 CITY OF ST. LOUIS PARK, MINNESOTA (Facsimile) (Facsimile) Mayor City Manager ______________________________________ City Council Meeting of June 20, 2016 (Item No. 8a) Page 16 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BOND TRUST SERVICES CORPORATION By Authorized Representative ______________________________________ ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT _________ Custodian _________ (Cust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors Act, State of _______________ JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used though not in the above list. ________________________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint _________________________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor’s signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: City Council Meeting of June 20, 2016 (Item No. 8a) Page 17 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STEMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee ________________________________________ PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Officer of Registrar Cede & Co. Federal ID #13-2555119 City Council Meeting of June 20, 2016 (Item No. 8a) Page 18 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects EXHIBIT C TAX LEVY SCHEDULE YEAR * TAX LEVY * Year tax levy collected. City Council Meeting of June 20, 2016 (Item No. 8a) Page 19 Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center Projects STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF ST. LOUIS PARK ) I, the undersigned, being the duly qualified and acting City Clerk of the City of St. Louis Park, Hennepin County, Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on June 20, 2016, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of the City’s General Obligation Bonds, Series 2016A, in the original aggregate principal amount of $________. WITNESS My hand officially as such City Clerk and the corporate seal of the City this ____ day of __________, 2016. City Clerk City of St. Louis Park, Minnesota (SEAL) City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 20 City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 21 City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 22 City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 23 City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 24 City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 25 City Council Meeting of June 20, 2016 (Item No. 8a) Title: Series 2016A G.O. Bonds – Indoor/Outdoor Rec Center ProjectsPage 26 Meeting: City Council Meeting Date: June 20, 2016 Action Agenda Item: 8b EXECUTIVE SUMMARY TITLE: Floodwall CUP and a Variance Request for Compensatory Flood Storage RECOMMENDED ACTION: Motion to Adopt Resolution granting a Conditional Use Permit (CUP) to add 1,175 cubic yards of fill due to construction of a floodwall subject to conditions recommended by staff. Motion to Adopt Resolution granting a Variance to allow excavation of 1,815 cubic yards of material to provide compensatory storage within a floodplain subject to conditions recommended by staff. POLICY CONSIDERATION: Do the CUP and the Variance requests meet the criteria of the Zoning Ordinance? SUMMARY: Park Nicollet Health Services (PNHS) requests a Conditional Use Permit (CUP) to construct a floodwall, storm sewer modifications, and compensatory flood storage through wetland restoration. A CUP is required to place fill in the floodplain, and for any project that involves the import or export of more than 400 cubic yards of soil. This request proposes construction of 1,175 cubic yards of floodwall within the floodplain and the export of approximately 1,815 cubic yards of soil from the existing wetland. PNHS also requests a Variance to construct compensatory flood storage within the existing floodplain. St. Louis Park’s Floodplain Ordinance requires compensating storage to be provided outside of the existing floodplain boundary. The Planning Commission conducted the public hearing on May 18, 2016 and no comments from the public were received. The Planning Commission unanimously recommended approval of the CUP and the Variance with conditions recommended by staff. A copy of the unofficial meeting minutes is attached. FINANCIAL OR BUDGET CONSIDERATION: Not applicable SUPPORTING DOCUMENTS: Discussion Draft Resolution CUP Draft Resolution Variance Site Location Map Excerpt of Planning Commission Minutes Detailed Description of Request for Conditional Use Permit Justification for Variance Request Minnesota “No Rise” Certification Development Plans Prepared by: Jennifer Monson, Planner Reviewed by: Sean Walther, Planning and Zoning Supervisor Michele Schnitker, Deputy CD Director Approved by: Tom Harmening, City Manager City Council Meeting of June 20, 2016 (Item No. 8b) Page 2 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage DISCUSSION Location: The property is located at the corner of Louisiana Avenue and Excelsior Blvd. Construction would occur along the western edge of Methodist Hospital on the eastern edge of the Minnehaha Creek Floodplain. Comprehensive Plan: Office Zoning District(s): R-C High-Density Multiple- Family Residence, Floodplain Overlay District Applicant: Park Nicollet Health Services BACKGROUND: The PNHS facility, Methodist Hospital, in St. Louis Park experienced flooding related issues due to high water levels from Minnehaha Creek in the spring of 2014. To help better manage and reduce the risk to hospital operations from future flooding, the Applicant is proposing a floodwall on the western edge of Methodist Hospital near the loading docks. Construction of the floodwall would take place within the floodplain and floodway of Minnehaha Creek. To mitigate lost flood storage due to the floodwall, the Applicant proposes to construct on-site compensatory storage within the existing floodplain and floodway enhancing the wetland area immediately upstream of the flood wall. The CUP and variance are required by St. Louis Park to accomplish this work, and are accompanied by a Cooperative Agreement and Floodplain Management and Master Planning with the Minnehaha Creek Watershed District (MCWD). MCWD requires compensatory flood storage for any fill/impact in the 100 year floodplain. Structural components installed to control floods are allowed by a CUP, and the import or export of soils over 400 cubic yards requires a CUP. A variance is required to construct compensating storage within the floodplain, since St. Louis Park’s Floodplain Ordinance requires compensating storage to be provided outside of the existing floodplain boundary. PNHS and MCWD are partnering in the design, permitting, and preparation of construction documents for the compensatory storage, and will be exploring long term master planning for flood storage and other water and natural resource management or enhancement opportunities at PNHS Methodist Hospital campus. The overall purpose of this project is to address the following: Reduce impact, risk, and flood fighting operations though the construction of a permanent floodwall structure along the west side of the campus facility, thus improving health and safety in the project area. Control floodwater seepage around existing storm sewer piping, manholes, and correct pavement structure. Control floodwater within the loading dock area including backflow prevention through existing storm sewer and management of floodwater through pumping. City Council Meeting of June 20, 2016 (Item No. 8b) Page 3 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage The proposal consists of: 1,175 cubic yards of impacted flood storage from the floodwall 1,815 cubic yards of compensatory storage This proposal results in a net increase of 640 cubic yards of storage to help mitigate future flooding events. Following excavation, the Applicant is proposing to restore the wetland by creating the following wetland types: deep marsh, shrub swamp, and shallow marsh/wet meadow. The details of the floodwall construction and compensatory storage excavation are as follows: Truck loads: 360 Trucks per day: 15-24 Construction dates: Floodwall: August 2016 to October 2016 Compensatory Storage: November 2016 to January 2017 Hours of construction Weekdays: 7 a.m. to 7 p.m. (shorter days in winter months) Occasional Saturdays, if needed, (9 a.m. to 7 p.m.) Haul route: The trucks will utilize onsite access roads, Louisiana Avenue, and Excelsior Blvd. A map showing the haul route is attached. Conditional Use Permit Analysis: Structural works for flood control such as levees, dikes and floodwalls, constructed to any height where the intent is to protect individual structures for a frequency flood event equal to or less than the ten-year frequency flood event are allowed within the Floodplain Districts by CUP with some conditions specific to this use, and are allowed as part of the underlying zoning. A review of the conditions follows: 1. All relevant factors specified in other sections of the floodplain chapter of the zoning ordinance. This request meets all relevant factors specified in Division 10. Floodplain Districts of the City of St. Louis Park Zoning Ordinance. 2. The danger to life and property due to increased flood heights or velocities caused by encroachments. The proposed floodwall’s purpose is to lessen the danger to life and property by protecting the PNHS Methodist Hospital structure. The applicant is proposing compensatory storage be located within the existing floodplain to mitigate the impacts of flood storage. It is estimated that the proposed floodwall will not increase flood heights in the interim either, as evidenced by the “no rise certificate”. 3. The danger that materials may be swept onto other lands or downstream to the injury of others or they may block bridges, culverts or other hydraulic structures. Due to the proposed additional compensatory storage within the wetland, there is lessened danger that materials may be swept onto other lands or downstream to the injury of others. There have been no identified bridges, culverts or other hydraulic structures that the floodwall would impact. 4. The proposed water supply and sanitation systems and the ability of these systems to prevent disease, contamination and unsanitary conditions. The proposed floodwall should not affect the water supply or sanitation systems, nor alter the ability of the systems to prevent disease, contamination, or unsanitary conditions. City Council Meeting of June 20, 2016 (Item No. 8b) Page 4 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage 5. The susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the individual owner. The purpose of the floodwall is to prevent flood damage. The floodwall would protect the owner from future flood damage to the grounds and buildings. 6. The importance of the services provided by the proposed facility to the community. The benefits that the community will receive from the proposed floodwall are great. The floodwall will protect the ground level of Methodist Hospital, which serves the City of St. Louis Park and the greater Metro Area from future flooding events. The ground level of the hospital is where much of the mechanical equipment for the hospital is housed. Should the ground level of Methodist Hospital flood, evacuation of patients from the facility would be likely. The proposed floodwall will require additional compensatory storage. The storage is proposed to be located within the existing floodplain, and would provide an additional 640 cubic yards of storage for increased flooding events. This will benefit nearby properties owners. The storage location also facilitates wetland restoration and its continued preservation. 7. The requirements of the facility for a waterfront location. A floodwall is required to be located on a waterfront location to prevent future flooding events. 8. The availability of alternative locations not subject to flooding for the proposed use. There are no other locations for the floodwall. The floodwall’s proposed location is to prevent future flooding damage and disruption to the hospital. 9. The compatibility of the proposed use with existing development and the development anticipated in the foreseeable future. The proposed floodwall’s purpose is to protect existing and future development of Methodist Hospital from flooding events. 10. The relationship of the proposed use to the comprehensive plan and floodplain management program for the area. St. Louis Park’s Comprehensive Plan and the City’s Storm Water Management Plan seek to minimize public capital expenditures needed to correct flooding and water quality problems; protect and enhance fish and wildlife habitat; and secure benefits associated with proper management of surface and groundwater. The floodwall, compensatory flood storage, and wetland enhancements would help to accomplish each of these items. 11. The safety of access to the property in times of flood for ordinary and emergency vehicles. The proposed floodwall will increase the safety of access to the property in times of flooding events for ordinary and emergency vehicles. The location of the floodwall is near the loading dock for the hospital. This floodwall would enable the hospital to continue to operate during a flood event. 12. Such other factors which are relevant to the purposes of this division. Upon consideration of the factors listed above, city council shall attach additional conditions to the granting of CUP as it deems necessary to fulfill the purposes of the Zoning Ordinance. Such conditions may include, but are not limited to: City Council Meeting of June 20, 2016 (Item No. 8b) Page 5 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage a. Modification of waste treatment and water supply facilities. b. Limitations on period of use, occupancy, and operation. c. Imposition of operational controls, sureties, and deed restrictions. d. Requirements for construction of channel modifications, compensatory storage, dikes, levees, and other protective measures. e. Flood proofing measures, in accordance with State Building Code and the Zoning Ordinance. The applicant shall submit a plan or document certified by a registered professional engineer or architect that the flood proofing measures are consistent with the regulatory flood protection elevation and associated flood factors for the particular area. Staff finds the requirements for 12d and 12e noted above - Compensatory storage and Documentation certifying that the floodwall is in accordance with state building code - are necessary. Variance Analysis: The applicant is seeking one variance from St. Louis Park’s Floodplain Ordinance which requires compensating storage to be provided outside of the existing floodplain boundary. The applicant would like to add the compensating storage within the existing floodplain boundary. To offset the 1,175 cubic yards of impact to the floodplain from the construction of the floodwall, the Applicant is requesting a Variance to add 1.5 acres of additional floodplain area and 1,815 cubic yards of compensatory storage within the floodplain by excavating an average of 0.75 feet depth from the existing wetland. Feasibility studies were conducted for two sites where compensatory storage could be located on site: the Southwest Site and the North Site. The study for the southwest site, located outside of the floodplain, found that while storage could be accommodated, it would require the removal of several mature trees, and would disrupt the Minnehaha Creek riparian ecosystem. There would also be potential impacts and access issues with adjacent parcels. The North Site, which was studied through a partnership with the Applicant and Minnehaha Creek Watershed District (MCWD), is located within the existing floodplain, and was found to be the most feasible with respect to Minnehaha Creek and the watershed district. This location can be utilized to offset fill from the floodwall, and to add an additional capacity of 640 cubic yards of water storage within the floodplain. The variance request is to allow excavation for compensatory storage within the existing floodplain boundary. The criteria for granting variances and the applicant and staff’s finding for each are provided below. 1. The effect of the proposed variance upon the health, safety, and welfare of the community. The proposed project would improve public health and safety by reducing flood risk potential and emergency response efforts to control flooding at the PNHS facility. Development of the compensatory storage area is not anticipated to affect surrounding lands. Staff finds this criterion has been satisfied. City Council Meeting of June 20, 2016 (Item No. 8b) Page 6 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage 2. Whether or not the request is in harmony with the general purposes and intent of the Zoning Ordinance. PNHS believes that the variance request is compatible with the purpose and intent of the Zoning Ordinance. PNHS has retained an independent engineer to evaluate the proposed project for no rise certification of the 100-year high water level, consistent with Minnesota Department of Natural Resources guidance. With the no rise certificate, the analysis demonstrates that there would be no increase in the 100-year flood level for Minnehaha Creek, which meets the intent of providing compensatory storage outside the 100-year floodplain. Staff finds this request to be in harmony with the purposes of the Zoning Ordinance. 3. Whether or not the request is consistent with the Comprehensive Plan. PNHS is not aware of any inconsistency with the City of St. Louis Park Comprehensive Plan or the 2009 Surface Water Management Plan. Staff finds this criterion has been satisfied. 4. Whether or not the applicant establishes that there are practical difficulties in complying with the Zoning Ordinance. Practical Difficulty means: a. The proposed use is permitted in the zoning district in which the land is located. A variance can be requested for dimensional items only. This use is permitted within the project's zoning district. Staff finds this criterion has been satisfied. b. The plight of the landowner is due to circumstances unique to the property and not created by the landowner. PNHS evaluated compensatory storage outside of the floodplain; however, there is very limited opportunity on the PNHS property for storage outside of the floodplain between Louisiana Avenue and Excelsior Boulevard. PNHS evaluated a potential compensatory storage site in the southwest quadrant of the hospital campus, at the northeast quadrant of Louisiana Avenue and Excelsior Boulevard (known as the "Southwest Site"). The Southwest Site is problematic as it would require removal of many mature trees that provide an area of natural vegetation adjacent to Minnehaha Creek. Minnehaha Creek is located in an urban setting with limited areas of natural vegetation; tree removal in this area would be detrimental to the creek's riparian ecosystem. Construction of compensatory storage at the Southwest Site would also result in potential impacts and access conflicts with adjacent properties. In addition, it would require electrical/mechanical relocations and limit potential for a future trail along Minnehaha Creek's west bank. Staff finds this criterion has been satisfied. c. The variance, if granted, will not alter the essential character of the locality. City Council Meeting of June 20, 2016 (Item No. 8b) Page 7 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage PNHS and the Minnehaha Creek Watershed District (MCWD) have conducted a preliminary investigation into the feasibility of achieving compensatory storage through wetland enhancement on an alternative site, referred to as the "North Site." The North Site is located on the hospital campus, north of the proposed floodwall location, and is within the 100-year floodplain of Minnehaha Creek. Compensatory storage through wetland enhancement at the North Site would enhance the character, functions, values, and aesthetics of the current cattail-dominated wetland through creation of several different wetland types. Staff finds this criterion has been satisfied. d. Economic considerations alone do not constitute practical difficulties. PNHS is interested in enhancing the facility's relationship with the ecology of Minnehaha Creek and its adjacent wetlands. PNHS is working closely with the MCWD on a Master Planning process (see Attachment A) to explore opportunities to coordinate management and enhancements of natural areas on the Mark Nicollet-Methodist Hospital campus that will provide both public and private value. Staff finds this criterion has been satisfied. e. Practical difficulties include inadequate access to direct sunlight for solar energy systems. This item is not applicable to the proposed project. Staff finds this criterion has been satisfied. 5. Whether or not there are circumstances unique to the shape, topography, water conditions, or other physical conditions of the property. PNHS is requesting a variance to construct compensatory storage at its identified North Site. Though the South Site is located outside of the floodplain, it would require clearing mature, natural vegetation adjacent to Minnehaha Creek. Constructing compensatory mitigation at the South Site would also result in reduced parking and would require electrical/mechanical relocations. Staff finds this criterion has been satisfied. 6. Whether or not the granting of the variance is necessary for the preservation and enjoyment of a substantial property right. Flood protection for Methodist Hospital is extremely important to PNHS and the community it serves. In order to provide adequate flood protection, compensatory storage will be required. Granting the requested variance would allow compensatory storage to be constructed in a location that would enhance area wetlands rather than in an area that would require clearing of natural vegetation. Staff finds this criterion has been satisfied. City Council Meeting of June 20, 2016 (Item No. 8b) Page 8 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage 7. Whether or not the granting of the variance will impair light and air to the surrounding properties, unreasonably increase congestion, increase the danger of fire, or endanger public safety. PNHS believes that the variance request complies with this requirement. Staff finds this criterion has been satisfied. 8. Whether or not the granting of the variance will merely serve as a convenience or is it necessary to alleviate a practical difficulty. PNHS believes that the variance request complies with this requirement. Staff finds this criterion has been satisfied. PUBLIC MEETINGS: Neighborhood Meeting: A neighborhood meeting was held on May 10, 2016 at Methodist Hospital. There were no neighbors in attendance. Notices were mailed to all properties within 500 feet of the property, emailed to leaders of the Brooklawns, Meadowbrook, and Creekside neighborhoods, and posted on the city and NextDoor websites. A sign was posted on the site, too. Planning Commission Review: The Planning Commission conducted the public hearing on May 18, 2016 and no comments from the public were received. The Planning Commission unanimously recommended approval of the CUP and the Variance with conditions recommended by staff. A copy of the unofficial meeting minutes is attached. City Council Meeting of June 20, 2016 (Item No. 8b) Page 9 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage RESOLUTION NO. 16-___ RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER SECTION 36-294 AND 36-79 OF THE ST. LOUIS PARK ORDINANCE CODE RELATING TO FLOODPLAIN DISTRICTS AND GRADING TO PERMIT THE CONSTRUCTION OF A FLOODWALL WITHIN THE FLOODPLAN OVERLAY DISTRICT AT 6500 EXCELSIOR BOULEVARD WHEREAS, Park Nicollet Health Systems has made application to the City Council for a Conditional Use Permit under Section 36-294(f) of the St. Louis Park Ordinance Code for the purpose of constructing a floodwall within a Floodplain Overlay District resulting in 1,175 cubic yards of impacted flood storage within the floodplain on property located at 6500 Excelsior Boulevard in St. Louis Park and legally described as set forth in Exhibit “A” attached hereto; and WHEREAS, the City Council has considered the advice and recommendation of the Planning Commission (Case No. 16-15-CUP) and the effect of the proposed floodwall on the health, safety and welfare of the community, the consistency with the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance; and WHEREAS, the Council has determined that the construction of the floodwall will not be detrimental to the health, safety, or welfare of the community, and that the request is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan; and WHEREAS, the contents of Planning Case File 16-15-CUP are hereby entered into and made part of the public hearing record and record of decision for this case; and WHEREAS, the site is developed, used, and maintained in conformance with Official Exhibits, required permits are obtained prior to construction, the sequencing schedule for the floodwall and wetland compensatory storage completion is followed, and documentation certifying that the floodwall is in accordance with state building code. NOW THEREFORE, BE IT RESOLVED THAT, the St. Louis Park City Council hereby approves a Conditional Use Permit for Park Nicollet Health Services to construct a floodwall and export more than 400 cubic yards of soil at 6500 Excelsior Blvd within the Floodplain Overlay District, subject to the following conditions: 1) The site shall be developed, used and maintained in conformance with the Official Exhibits. 2) Prior to starting construction the following: a. The assent form and official exhibits must be signed by applicant and/or owner. b. A preconstruction meeting shall be held with the appropriate development, construction, private utility, and City representatives. c. All necessary permits shall be obtained, including but not limited to: i. NPDES Grading/Construction Permit ii. City of St. Louis Park Building, Sewer and Water, and Erosion Control Permits iii. MnDNR Protected Waters Permit iv. Minnehaha Creek Watershed District Approval City Council Meeting of June 20, 2016 (Item No. 8b) Page 10 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage 3) The Applicant shall follow the sequencing schedule for the floodwall and wetland compensatory storage completion. 4) Documentation certifying that the floodwall is in accordance with state building code. 5) In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. 6) This permit shall be revoked and cancelled if the structure for which the conditional use permit is granted is removed. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City Council Meeting of June 20, 2016 (Item No. 8b) Page 11 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage “EXHIBIT A” LEGAL DESCRIPTION Par 1: That part of the Northeast Quarter of the Northeast Quarter of Section 20, Township 117, Range 21, described as follows: Commencing at the Southeast corner of said Northeast Quarter of Northeast Quarter, thence North to a point 90 feet South of the South line of Calhoun Street, thence West parallel with the South line of Calhoun Street and the same extended, to a point 111 feet West of the East line of Section 20, the actual point of beginning of the land to be described; thence continuing West on said parallel line to the West line of Mount St., extended; thence North along said line and the West line of Mound St. 202.5 feet; thence West parallel with the extension of the South line of Calhoun St., 644.9 feet to the Southeasterly line of right of way of the Chicago, Milwaukee and St. Paul Railway Co.; thence Southwesterly along said right of way line to the West line of the Northeast Quarter of the Northeast Quarter of said Section; thence South to the Southwest Corner of the Northeast Quarter of the Northeast Quarter; thence East along the South line of said Northeast Quarter of Northeast Quarter of said Section to the point of intersection with a line running parallel with the East line of said Section from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Par 2: The Southeast Quarter of the Northeast Quarter that part of the North 1/2 of the Southeast Quarter which lies North of the center line of Excelsior Boulevard, Section 20, Township 117, Range 21 excepting there from that part which lies East of a line described as follows: Commencing at a point on the East line of said Section 90 feet South of the South line of Calhoun Street; thence West parallel with the South line of Calhoun Street and the same extended to a point 111 feet West of the East line of said Section the actual point of beginning of the line to be described; thence South parallel with the East line of Section 20 to the center line of Excelsior Boulevard and except that part lying Southerly and Westerly of a line drawn from a point in the West line of the Southeast Quarter of the Northeast Quarter distant 425 feet South of the Northwest corner thereof to a point in the South line of said Southeast Quarter of the Northeast Quarter distant 480 feet West of the Southeast corner thereof; thence along said line projected Southeasterly to the intersection with a line drawn 411 feet West of, measured at a right angle to and parallel with the East line of the North 1/2 of the Southeast Quarter; thence South along last said parallel line to the center line of Excelsior Boulevard and there terminating. Subject to a power line easement over a strip of land 35 feet in width as set forth in the record, Book 1045 of Deeds, page 41, the center line of which strip was described as follows, to wit: Beginning at a point 17 1/2 feet West of the Southeast corner of said Section 20, thence North parallel to East section line and equidistant therefrom to the South line of Excelsior Boulevard sometimes called Hopkins Road; thence Northwesterly to a point on the North line of said Excelsior Boulevard 128 1/2 feet West of said East section line; thence North and parallel to said section line to a point 128 1/2 feet West of said Section line and 14 feet South of the South line of said Lot 14, Block 78, in the Village of St. Louis Park all as shown by plat on file herein of which a certified copy shall be filed with the Registrar of Titles. City Council Meeting of June 20, 2016 (Item No. 8b) Page 12 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage RESOLUTION NO. 16-____ A RESOLUTION GRANTING VARIANCE FROM SECTION 36-292 OF THE ORDINANCE CODE RELATING TO ZONING FOR COMPENSATORY FLOOD STORAGE FOR PROPERTY LOCATED IN THE FLOODPLAIN ZONING DISTRICT AT 6500 EXCELSIOR BOULEVARD BE IT RESOLVED BY the City Council of St. Louis Park, Minnesota: Findings 1. Park Nicollet Health Systems has applied for a variance from Section 36-292(f) of the Ordinance Code relating to zoning for compensatory flood storage for property located in the floodplain district at 6500 Excelsior Boulevard in St. Louis Park and legally described as set forth in Exhibit “A” attached hereto. 2. On May 18, 2016, the Planning Commission held a public hearing, received testimony from the public, discussed the application and moved approval of a variance to allow compensatory flood storage be constructed within the Minnehaha Creek Floodway and Floodplain. 3. The Planning Commission has considered the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, the effect on values of property in the surrounding area, and the effect of the proposed variance upon the Comprehensive Plan. 4. Because of conditions on the subject property and surrounding property, it is possible to use the property in such a way that the proposed variance will not impair an adequate supply of light and air to the adjacent property, unreasonably increase the congestion in the public streets, increase the danger of fire, endanger the public safety, unreasonably diminish or impair health, safety, comfort, morals, or in any other respect be contrary to the intent of the Zoning Ordinance and the Comprehensive Plan. 5. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property and do not apply generally to other land or structures in the district in which such land is located. 6. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. It will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable hardship or difficulty. 7. The contents of Planning Case File 16-16-VAR are hereby entered into and made part of the public hearing record and the record of decision of this case. 8. Under the Zoning Ordinance, this variance shall be deemed to be abandoned, revoked, or canceled if the holder shall fail to complete the work on or before one year after the variance is granted. 9. Under the Zoning Ordinance, this variance shall be revoked and cancelled if the building or structure for which the variance is granted is removed. City Council Meeting of June 20, 2016 (Item No. 8b) Page 13 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage CONCLUSION The application for the variance is granted based upon the findings set forth above, as follows: 1. The site shall be developed, used and maintained in conformance with the Official Exhibits. 2. The following permits will need to be obtained prior to starting construction: a. NPDES Grading/Construction Permit b. City of St. Louis Park Erosion Control Permit c. MnDNR Protected Waters Permit d. Minnehaha Creek Watershed District Approval 3. The Applicant shall follow the sequencing schedule for the floodwall and wetland compensatory storage completion. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council June 20, 2016 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City Council Meeting of June 20, 2016 (Item No. 8b) Page 14 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage “EXHIBIT A” LEGAL DESCRIPTION Par 1: That part of the Northeast Quarter of the Northeast Quarter of Section 20, Township 117, Range 21, described as follows: Commencing at the Southeast corner of said Northeast Quarter of Northeast Quarter, thence North to a point 90 feet South of the South line of Calhoun Street, thence West parallel with the South line of Calhoun Street and the same extended, to a point 111 feet West of the East line of Section 20, the actual point of beginning of the land to be described; thence continuing West on said parallel line to the West line of Mount St., extended; thence North along said line and the West line of Mound St. 202.5 feet; thence West parallel with the extension of the South line of Calhoun St., 644.9 feet to the Southeasterly line of right of way of the Chicago, Milwaukee and St. Paul Railway Co.; thence Southwesterly along said right of way line to the West line of the Northeast Quarter of the Northeast Quarter of said Section; thence South to the Southwest Corner of the Northeast Quarter of the Northeast Quarter; thence East along the South line of said Northeast Quarter of Northeast Quarter of said Section to the point of intersection with a line running parallel with the East line of said Section from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Par 2: The Southeast Quarter of the Northeast Quarter that part of the North 1/2 of the Southeast Quarter which lies North of the center line of Excelsior Boulevard, Section 20, Township 117, Range 21 excepting there from that part which lies East of a line described as follows: Commencing at a point on the East line of said Section 90 feet South of the South line of Calhoun Street; thence West parallel with the South line of Calhoun Street and the same extended to a point 111 feet West of the East line of said Section the actual point of beginning of the line to be described; thence South parallel with the East line of Section 20 to the center line of Excelsior Boulevard and except that part lying Southerly and Westerly of a line drawn from a point in the West line of the Southeast Quarter of the Northeast Quarter distant 425 feet South of the Northwest corner thereof to a point in the South line of said Southeast Quarter of the Northeast Quarter distant 480 feet West of the Southeast corner thereof; thence along said line projected Southeasterly to the intersection with a line drawn 411 feet West of, measured at a right angle to and parallel with the East line of the North 1/2 of the Southeast Quarter; thence South along last said parallel line to the center line of Excelsior Boulevard and there terminating. Subject to a power line easement over a strip of land 35 feet in width as set forth in the record, Book 1045 of Deeds, page 41, the center line of which strip was described as follows, to wit: Beginning at a point 17 1/2 feet West of the Southeast corner of said Section 20, thence North parallel to East section line and equidistant therefrom to the South line of Excelsior Boulevard sometimes called Hopkins Road; thence Northwesterly to a point on the North line of said Excelsior Boulevard 128 1/2 feet West of said East section line; thence North and parallel to said section line to a point 128 1/2 feet West of said Section line and 14 feet South of the South line of said Lot 14, Block 78, in the Village of St. Louis Park all as shown by plat on file herein of which a certified copy shall be filed with the Registrar of Titles. City Council Meeting of June 20, 2016 (Item No. 8b) Page 15 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage City Council Meeting of June 20, 2016 (Item No. 8b) Page 16 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage UNOFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA MAY 18, 2016 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Torrey Kanne, Lisa Peilen, Richard Person, Carl Robertson, Joe Tatalovich, Ethan Rickert (youth member) MEMBERS ABSENT: None STAFF PRESENT: Sean Walther, Jennifer Monson 1. Call to Order – Roll Call 2. Approval of Minutes of May 4, 2016 Commissioner Robertson moved approval of the minutes. Commissioner Peilen seconded the motion, and the motion passed on a vote of 5-0. Commissioner Person arrived at 6:02 p.m. Commissioner Tatalovich arrived at 6:06 p.m. 3. Public Hearings A. Methodist Hospital Floodwall – Conditional Use Permit & Variance Request Location: 6500 Excelsior Blvd. Applicant: Park Nicollet Health Services (PNHS) Case Nos. 16-15-CUP and 16-16-VAR Jennifer Monson, Planner, presented the staff report. The applicant requests a Conditional Use Permit to construct a floodwall, storm sewer modifications, and construction of compensatory storage through wetland restoration. A variance is requested to construct compensatory floodplain storage within the existing floodplain. Ms. Monson explained that the applicant is proposing a floodwall to help prevent future flooding on and around the hospital. Ms. Monson discussed the partnership between PNHS and Minnehaha Creek Watershed District (MCWD) on the project. Ms. Monson reviewed how the criteria for conditions of approval for the Conditional Use Permit have been met. Ms. Monson presented the findings for each criteria to grant the variance request. Commissioner Robertson asked if the project would alleviate water backing up through manholes which was a problem during the 2014 flood. City Council Meeting of June 20, 2016 (Item No. 8b) Page 17 Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Robert Riesselman, PNHS, said the seepage underneath was a big problem during the 2014 event. He said that problem will be addressed through the floodwall design. Sean Walther, Planning and Zoning Supervisor, added that a back-flow prevention system is part of the design on the existing on the existing stormwater pipes that penetrate that system. Water can escape but not back into the site. Commissioner Carper asked if the construction would create an increase in mosquito breeding areas. Mark Kretschmer, Barr Engineering, said there will be some standing water. Mr. Riesselman noted that compensatory storage work will be done in the winter when things freeze up. He said in general there will be more standing water than less when the project is completed. Commissioner Robertson remarked that by building the wall the footprint decreases which adds depth and less surface. The wetlands, which are currently degraded, will be upgraded through the project. There was a discussion about water elevation during a 100 year flood. Mr. Riesselman noted that the creek channel from Louisiana to Excelsior is fairly shallow and has sometimes been dry in extreme years. Chair Johnston-Madison opened the public hearing. As no one was present wishing to speak the hearing was closed. Commissioner Peilen made a motion recommending approval of the Conditional Use Permit and variance subject to conditions recommended by staff. Commissioner Robertson seconded the motion, and the motion passed on a vote of 7-0. 4. Other Business 5. Communications Mr. Walther spoke about two upcoming community workshops. 6. Adjournment The meeting was adjourned at 6:25 p.m. Respectfully submitted, Nancy Sells Recording Secretary APR 4 2016 Detailed Description of Request for Conditional Use Permit The Park Nicollet Health Services (PNHS) facility in St. Louis Park, Minnesota experienced flooding and related issues due to high water levels from Minnehaha Creek in the spring of 2014. As such, PNHS is proposing construction of a floodwall, storm sewer modifications, and construction of compensatory storage through wetland restoration. The proposed project has been planned to address the following concerns: • Reduce impact, risk and flood fighting operations through the construction of a permanent floodwall structure along the west side of the campus facility, thus improving health and safety in the project area. • Control floodwater seepage around existing storm sewer piping, manholes, and correct pavement structure. • Control floodwater within the loading dock area including backflow prevention through existing storm sewer and management of floodwater through pumping. Construction of the floodwall would take place within the floodplain and floodway of Minnehaha Creek; thus compensatory storage is required. Compensatory storage would be provided on-site by restoring and enhancing the wetland area immediately upstream of the floodwall. Wetland restoration would include a combination of excavation and vegetation management to create the following wetland types: deep marsh, shrub swamp, and shallow marsh/wet meadow. The proposed project triggers the need for a Conditional Use Permit for Fill or Excavation as it will generate more than 400 cubic yards of fill/excavated materials. Construction of the floodwall would result in 1,175 cubic yards of impact in the floodplain. Wetland restoration activities would result in average excavation of 0.75 feet, creating 1.5 acres of additional floodplain area and 1,815 cubic yards of compensatory storage. The proposed project would improve public health and safety by reducing flood risk potential and emergency response efforts to control flooding at the PNHS facility. Compensatory storage would be provided as described above and surrounding lands are not anticipated to be affected. Proposed project features would be constructed using standard equipment including but not limited to: dozers, excavators, dump trucks, haul trucks, bobcats, and/or skid loaders. Low ground pressure excavation equipment would be used in wetland areas. Materials hauled to or from the site would be transported via designated haul routes, including Excelsior Boulevard, Louisiana Avenue South, and Hospital Access Road. Excavated material would be disposed of at an approved location appropriate for the material type. Site safety would be maintained through the use of designated material staging areas and restricting construction access to working crews only. The PNHS Patient Safety and Infection Control Manual would Park Nicollet Health Services Conditional Use Permit Application Floodwall and Compensatory Storage 1 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 18 be followed to maintain patient safety during construction. In addition, the general contractor would be required to develop and implement a site safety manual. It is expected that construction activity would deter wildlife from the site and that wildlife would return to the area upon construction completion. Nuisance wildlife during construction would be addressed on a case by case basis. PNHS has a robust safety and security plan, including a fire response system. The general contractor would be required to acquire PNHS approval for any activities that could increase fire risk. The general contractor would be required to follow standard housekeeping protocols and implement the erosion control plan. Trash would be picked up daily, and mud that is tracked onto roadways would be removed in a timely manner. The proposed project is consistent with the City of St. Louis Park's 2030 Comprehensive Plan and would not be detrimental to health, safety, or welfare of the surrounding community. The proposed project has been planned under the direction of a civil engineer registered in the State of Minnesota. In addition, it is consistent with current utility plans and zoning ordinances. Park Nicollet Health Services Conditional Use Permit Application Floodwall and Compensatory Storage 2 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 19 Justification for Variance Request APR 4 2016 The Park Nicollet Health Services (PNHS) facility in St. Louis Park, Minnesota experienced flooding and related issues due to high water levels from Minnehaha Creek in the spring of 2014. As such, PNHS is proposing construction of a floodwall, storm sewer modifications, and construction of compensatory storage through wetland restoration. The compensatory storage area would be located in an existing wetland area, within the 100-year floodplain on Minnehaha Creek. As such, a variance to Section 36-292 (f) of the Zoning Ordinance is requested. The following text explains how the proposed project would conform with the identified ordinance requirements. 1. The effect of the proposed project upon the health, safety, and welfare of the community. The proposed project would improve public health and safety by reducing flood risk potential and emergency response efforts to control flooding at the PNHS facility. Development of the compensatory storage area is not anticipated to affect surrounding lands. 2. The request is in harmony with the general purposes and intent of the Zoning Ordinance. PNHS believes that the variance request is compatible with the purpose and intent of the Zoning Ordinance. PNHS has retained an independent engineers to evaluate the proposed project for no rise certification of the 100-year high water level, consistent with Minnesota Department of Natural Resources guidance. With the no rise certificate, the analysis demonstrates that there would be no increase in the 100-year flood level for Minnehaha Creek, which meets the intent of providing compensatory storage outside the 100-year floodplain. 3. The request is consistent with the Comprehensive plan. PNHS is not aware of any inconsistency with the City of St. Louis Park Comprehensive Plan or the 2009 Surface Water Management Plan. 4. The applicant establishes that there are practical difficulties in complying with the Zoning Ordinance. This means that: a. The proposed use is permitted in the zoning district in which the land is located. This use is permitted within the project's zoning district. b. The plight of the landowner is due to circumstances unique to the property and not created by the landowner. PNHS evaluated compensatory storage outside of the floodplain; however, there is very limited opportunity on the PNHS property for storage outside of the floodplain between Louisiana Avenue and Excelsior Boulevard. Park Nicollet Health Services Conditional Use Permit Application Floodwall and Compensatory Storage 1 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 20 PNHS evaluated a potential compensatory storage site in the southwest quadrant of the hospital campus, at the northeast quadrant of Louisiana Avenue and Excelsior Boulevard (known as the "Southwest Site"). The Southwest Site is problematic as it would require removal of many mature trees that provide an area of natural vegetation adjacent to Minnehaha Creek. Minnehaha Creek is located in an urban setting with limited areas of natural vegetation; tree removal in this area would be detrimental to the creek's riparian ecosystem. Construction of compensatory storage at the Southwest Site would also result in potential impacts and access conflicts with adjacent properties. In addition, it would require electrical/mechanical relocations and limit potential for a future trail along Minnehaha Creek's west bank. c. The variance, if granted, will not alter the essential character of its locality. PNHS and the Minnehaha Creek Watershed District (MCWD) have conducted a preliminary investigation into the feasibility of achieving compensatory storage through wetland enhancement on an alternative site, referred to as the "North Site." The North Site is located on the hospital campus, north of the proposed floodwalllocation, and is within the 100-year floodplain of Minnehaha Creek. Compensatory storage through wetland enhancement at the North Site would enhance the character, functions, values, and aesthetics ofthe current cattail-dominated wetland through creation of several different wetland types. d. Economic considerations alone do not constitute practical difficulties. PNHS is interested in enhancing the facility's relationship with the ecology of Minnehaha Creek and its adjacent wetlands. PNHS is working closely with the MCWD on a Master Planning process (see Attachment A) to explore opportunities to coordinate management and enhancements of natural areas on the Mark Nicollet-Methodist Hospital campus that will provide both public and private value. e. Practical difficulties include inadequate access to direct sunlight for solar energy systems. This item is not applicable to the proposed project. 5. There are circumstances unique to the shape, topography, water conditions, or other physical conditional of the property. PNHS is requesting a variance to construct compensatory storage at its identified North Site. Though the South Site is located outside of the floodplain, it would require clearing mature, natural vegetation adjacent to Minnehaha Creek. Constructing compensatory mitigation at the South Site would also result in reduced parking and would require electrical/mechanical relocations. Park Nicollet Health Services Conditional Use Permit Application Floodwall and Compensatory Storage 2 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 21 6. The granting of the variance is necessary for the preservation and enjoyment of a substantial property right. Flood protection for Methodist Hospital is extremely important to PNHS and the community it serves. In order to provide adequate flood protection, compensatory storage will be required. Granting the requested variance would allow compensatory storage to be constructed in a location that would enhance area wetlands rather than in an area that would require clearing of natural vegetation. 7. The granting of the variance will not impair light and air to surrounding properties, unreasonably increase congestion, increase the danger of fire, or endanger public safety. PNHS believes that the variance request complies with this requirement. 8. The granting of the variance will not merely serve as a convenience but is necessary to alleviate a practical difficulty. PNHS believes that the variance request complies with this requirement. Park Nicollet Health Services Conditional Use Permit Application Floodwall and Compensatory Storage 3 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 22 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 23 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 24 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 25 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 26 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 27 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 28 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 29 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 30 WENCK File #B5981-0001 May 2016 Prepared for: Park Nicollet 6500 Excelsior Blvd, St. Louis Park, MN Prepared by: WENCK Associates, Inc. 1800 Pioneer Creek Center Maple Plain, MN 55359 Phone: 763-479-4200 Fax: 763-479-4242 MN Joint Permit Application – Park Nicollet Methodist Hospital Floodplain Mitigation and Wetland Enhancement City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 31 Minnesota Interagency Water Resource Application Form February 2014 Page 3 of 12 Project Name and/or Number: PART ONE: Applicant Information If applicant is an entity (company, government entity, partnership, etc.), an authorized contact person must be identified. If the applicant is using an agent (consultant, lawyer, or other third party) and has authorized them to act on their behalf, the agent’s contact information must also be provided. Applicant/Landowner Name: Park Nicollet, Robert Riesselman Mailing Address: 6500 Excelsior Blvd, St. Louis Park, MN Phone: (952)993‐5103 E‐mail Address: robert.riesselman@parknicollet.com Authorized Contact (do not complete if same as above): Mailing Address: Phone: E‐mail Address: Agent Name: Mailing Address: Phone: E‐mail Address: PART TWO: Site Location Information County: Hennepin City/Township:St. Louis Park Parcel ID and/or Address: Legal Description (Section, Township, Range): NE ¼ Sec. 20, T117N, R21W Lat/Long (decimal degrees): ‐93.364, 44.931 Attach a map showing the location of the site in relation to local streets, roads, highways.(See Figure 1) Approximate size of site (acres) or if a linear project, length (feet):3 acres If you know that your proposal will require an individual Permit from the U.S. Army Corps of Engineers, you must provide the names and addresses of all property owners adjacent to the project site. This information may be provided by attaching a list to your application or by using block 25 of the Application for Department of the Army permit which can be obtained at: http://www.mvp.usace.army.mil/Portals/57/docs/regulatory/RegulatoryDocs/engform_4345_2012oct.pdf PART THREE: General Project/Site Information If this application is related to a delineation approval, exemption determination, jurisdictional determination, or other correspondence submitted prior to this application then describe that here and provide the Corps of Engineers project number. Describe the project that is being proposed, the project purpose and need, and schedule for implementation and completion. The project description must fully describe the nature and scope of the proposed activity including a description of all project elements that effect aquatic resources (wetland, lake, tributary, etc.) and must also include plans and cross section or profile drawings showing the location, character, and dimensions of all proposed activities and aquatic resource impacts. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 32 Minnesota Interagency Water Resource Application Form February 2014 Page 4 of 12 Project Description‐See Section 1.0 Project Purpose and Need‐See Section 1.4 Wetlands and Aquatic Resources‐See Section 1.5 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 33 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 34 Minnesota Interagency Water Resource Application Form February 2014 Page 6 of 12 Project Name and/or Number: Attachment A Request for Delineation Review, Wetland Type Determination, or Jurisdictional Determination By submission of the enclosed wetland delineation report, I am requesting that the U.S. Army Corps of Engineers, St. Paul District (Corps) and/or the Wetland Conservation Act Local Government Unit (LGU) provide me with the following (check all that apply): Wetland Type Confirmation Delineation Concurrence. Concurrence with a delineation is a written notification from the Corps and a decision from the LGU concurring, not concurring, or commenting on the boundaries of the aquatic resources delineated on the property. Delineation concurrences are generally valid for five years unless site conditions change. Under this request alone, the Corps will not address the jurisdictional status of the aquatic resources on the property, only the boundaries of the resources within the review area (including wetlands, tributaries, lakes, etc.). Preliminary Jurisdictional Determination. A preliminary jurisdictional determination (PJD) is a non‐binding written indication from the Corps that waters, including wetlands, identified on a parcel may be waters of the United States. For purposes of computation of impacts and compensatory mitigation requirements, a permit decision made on the basis of a PJD will treat all waters and wetlands in the review area as if they are jurisdictional waters of the U.S. PJDs are advisory in nature and may not be appealed. Approved Jurisdictional Determination. An approved jurisdictional determination (AJD) is an official Corps determination that jurisdictional waters of the United States are either present or absent on the property. AJDs can generally be relied upon by the affected party for five years. An AJD may be appealed through the Corps administrative appeal process. In order for the Corps and LGU to process your request, the wetland delineation must be prepared in accordance with the 1987 Corps of Engineers Wetland Delineation Manual, any approved Regional Supplements to the 1987 Manual, and the Guidelines for Submitting Wetland Delineations in Minnesota (2013). http://www.mvp.usace.army.mil/Missions/Regulatory/DelineationJDGuidance.aspx City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 35 Minnesota Interagency Water Resource Application Form February 2014 Page 7 of 12 Project Name and/or Number: Attachment B Supporting Information for Applications Involving Exemptions, No Loss Determinations, and Activities Not Requiring Mitigation Complete this part if you maintain that the identified aquatic resource impacts in Part Four do not require wetland replacement/compensatory mitigation OR if you are seeking verification that the proposed water resource impacts are either exempt from replacement or are not under CWA/WCA jurisdiction. Identify the specific exemption or no‐loss provision for which you believe your project or site qualifies: WCA Since the proposed project will take place within a DNR Public Water Wetland, the proposed activities are not under the jurisdiction of the Wetland Conservation Act. Section 404 of Clean Water Act The proposed project will involve removal of existing vegetation, excavation, and changes to the grade within a wetland that is tributary to Minnehaha Creek. Since the goal of the project will be to improve the quality of wetland vegetation communities and enhance wetland functions (“functional lift”), compensatory mitigation is not proposed for the work to be conducted in the wetland. In light of the project goals and likely elevation of wetland functions, the work is considered self‐mitigating. It is assumed that this proposed work would be regulated by the Army Corps under Section 404 of the Clean Water Act and would be permitted under a Letter of Permission (LOP). MN DNR The work at this site is proposed to take place below the OHW of a Minnesota DNR public water stream. An application for a public waters work permit has been submitted concurrently with this application in MPARS. Provide a detailed explanation of how your project or site qualifies for the above. Be specific and provide and refer to attachments and exhibits that support your contention. Applicants should refer to rules (e.g. WCA rules), guidance documents (e.g. BWSR guidance, Corps guidance letters/public notices), and permit conditions (e.g. Corps General Permit conditions) to determine the necessary information to support the application. Applicants are strongly encouraged to contact the WCA LGU and Corps Project Manager prior to submitting an application if they are unsure of what type of information to provide: Section 404 of Clean Water Act The proposed work will include the enhancement of the vegetation community in the wetland and will maintain or improve wetland functions (“functional lift”) as demonstrated in Section 2.0 of the supplementary information. Compensatory mitigation is not proposed since the proposed work will not result in a loss or degradation of the quality of wetland. Since the proposed work will disturb less than 3 acres of wetland and will not require mitigation, it is assumed that it will be permitted under a Letter of Permission. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 36 Minnesota Interagency Water Resource Application Form February 2014 Page 8 of 12 Project Name and/or Number: Attachment C Avoidance and Minimization Project Purpose, Need, and Requirements. Clearly state the purpose of your project and need for your project. Also include a description of any specific requirements of the project as they relate to project location, project footprint, water management, and any other applicable requirements. Attach an overhead plan sheet showing all relevant features of the project (buildings, roads, etc.), aquatic resource features (impact areas noted) and construction details (grading plans, storm water management plans, etc.), referencing these as necessary: The primary purpose of the project is to provide required flood storage mitigation for a proposed floodwall that would decrease the flood storage capacity within developed areas of the Park Nicollet Methodist Hospital. A secondary purpose is to enhance the herbaceous vegetation community within the wetland which is currently composed of nearly monotypic invasive cattail (Typha angustifolia and T. X glauca). The project is needed since flooding potentially impacts parking areas, internal roads and walking areas on the west side of the hospital campus. The floodwall would be constructed along the west boundary of the hospital campus and a portion of the wetland complex immediately to the west would be excavated to provide flood storage capacity to mitigate the decrease in flood storage that would result from the floodwall construction. The flood storage loss from floodwall construction has been determined to be 1,175 cubic yards based on volume calculations made using established normal water elevations and 100 year floodplain elevations from hydrologic modeling previously conducted. The wetland excavation/enhancement project as proposed would provide approximately 2,500 cubic yards of new flood storage as floodplain mitigation. The detailed plans of how this excavation would be accomplished and the vegetation enhancement plan are further discussed in Section 2.0 of the supplemental information and shown in the grading plan in Appendix B. Avoidance. Both the CWA and the WCA require that impacts to aquatic resources be avoided if practicable alternatives exist. Clearly describe all on‐site measures considered to avoid impacts to aquatic resources and discuss at least two project alternatives that avoid all impacts to aquatic resources on the site. These alternatives may include alternative site plans, alternate sites, and/or not doing the project. Alternatives should be feasible and prudent (see MN Rules 8420.0520 Subp. 2 C). Applicants are encouraged to attach drawings and plans to support their analysis: The proposed project would mitigate flood storage impacts within the on‐site wetland complex. The dual purpose of mitigating flood storage and improving the functional quality of the wetland requires the project to take place in the wetland. Therefore, avoidance of the wetland is not possible if the project needs and purposes are to be achieved. Minimization. Both the CWA and the WCA require that all unavoidable impacts to aquatic resources be minimized to the greatest extent practicable. Discuss all features of the proposed project that have been modified to minimize the impacts to water resources (see MN Rules 8420.0520 Subp. 4): The project does not represent a loss of wetland acreage or functional quality and therefore minimization does not apply. Off‐Site Alternatives. An off‐site alternatives analysis is not required for all permit applications. If you know that your proposal will require an individual permit (standard permit or letter of permission) from the U.S. Army Corps of Engineers, you may be required to provide an off‐site alternatives analysis. The alternatives analysis is not required for a complete application but must be provided during the review process in order for the Corps to complete the evaluation of your application and reach a final decision. Applicants with questions about when an off‐site alternatives analysis is required should contact their Corps Project Manager. The proposed project involves the ecological enhancement of an existing monotypic cattail marsh within a wetland complex consisting of other wetland types. Alternative sites are not applicable for this project. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 37 Supplementary Information-Table of Contents 1.0 GENERAL PROJECT/SITE INFORMATION .................................................... 1-2 1.1 Introduction ..................................................................................... 1-2 1.2 Site Location .................................................................................... 1-2 1.3 Proposed Project Description ............................................................... 1-2 Compensatory Flood Storage Creation .................................................. 1-2 1.4 Project Purpose and Need ................................................................... 1-3 1.5 Wetlands and Aquatic Resources ......................................................... 1-3 Existing Wetland Characteristics .......................................................... 1-4 2.0 WETLAND ENHANCEMENT PLAN ................................................................. 2-7 2.1 Excavation and scraping ..................................................................... 2-7 2.2 Vegetation enhancement .................................................................... 2-8 Site Preparation ................................................................................ 2-8 Seeding/Planting Plan ........................................................................ 2-8 2.3 Performance Standards and Project Goals ............................................. 2-9 2.4 Vegetation Standards ....................................................................... 2-11 FIGURES Figure 1: Site Location Map Figure 2: Proposed Floodplain Impacts Figure 3: MN DNR PWI Figure 4: National Wetlands Inventory and MCWD FAW Figure 5: Existing Wetland Vegetation Communities Figure 6: Proposed Work in Wetland Figure 7: Proposed Vegetation Communities APPENDICES Appendix A: Grading Plan Appendix B: Wetland Enhancement Conceptual Plan Drawings City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 38 1.0 General Project/Site Information 1.1 INTRODUCTION This document has been prepared to supplement the Joint Application Form that is being submitted for Park Nicollet (Applicant) to provide project-specific information for a proposed floodplain mitigation and wetland enhancement project. The report also demonstrates the applicable permitting criteria according to the Wetland Conservation Act (WCA) as enforced by Minnehaha Creek Watershed District (District) and the Clean Water Act (CWA) as enforced by the US Army Corps of Engineers (ACOE). 1.2 SITE LOCATION The proposed project site is located in the northeast ¼ of Section 20, Township 117N, Range 21W, at 6500 Excelsior Blvd in the City of St. Louis Park, Minnesota (Figure 1 – Site Location Map). The project is proposed wholly within a wetland on the subject property. 1.3 PROPOSED PROJECT DESCRIPTION 1.3.1 Compensatory Flood Storage Creation The Applicant has identified flooding concerns on the project site and has proposed to construct a flood wall to alleviate flooding. The specific purpose of the floodwall is to address flooding issues at the hospital loading dock from nearby Minnehaha Creek. The construction of the floodwall would result in a reduction to the 100 year floodplain volume (below 100 year floodplain elevation of 890.1 ft) which, according to local ordinances, requires the creation of compensatory flood storage to account for the loss of flood storage. The proposed floodwall construction would result in the loss of approximately 1,175 cubic yards of flood storage (See Figure 2 for the location of proposed floodwall). Park Nicollet previously identified an alternative potential site to create the compensatory flood storage in the southwestern corner of the Methodist hospital campus (See Figure 2). The proposed site was not the preferred alternative since it proposes to clear trees along Minnehaha Creek and may have other potential issues. Park Nicollet, with the assistance of the District, investigated the feasibility of achieving the required compensatory flood storage within existing wetlands on the Methodist Hospital campus. The investigation involved determining the available volume for flood storage in the wetland (based on the applicable normal water level elevation of 883.7 feet as pre- determined from existing hydrologic models for the area). Areas with an existing ground surface elevation above the normal water level elevation were determined to be eligible for the creation of flood storage by excavation in the wetland. Excavation depths below 883.7 feet would not be eligible for floodplain mitigation credit. The existing conditions of the wetland were also determined in order to evaluate the potential for enhancement of the wetland vegetation communities and functions. Overall, the findings of the feasibility analysis were that the required compensatory flood storage could be created by excavation in the wetland in combination with the enhancement of the low quality vegetation communities in the wetland. Park Nicollet has developed a plan that would provide the required compensatory flood storage in the wetland. The proposed grading plan for the creation of floodplain storage is found in Appendix A. The proposed plan to create compensatory flood storage would include the excavation of approximately 3,000 yds3 of material from the wetland, according to volume calculations made using the proposed grading plan and existing elevations in the wetland obtained from a topographic survey. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 39 The proposed excavation depths would range from 0.5 feet to approximately 3 feet, resulting in a post-construction bottom elevation in the wetland ranging from approximately 883 to 886 feet. The excavation would be conducted to provide an undulating wetland bottom with varying elevations in order to meet the needs of the wetland enhancement plan. Most of the excavated material would be hauled off-site and disposed of as required by industry standards. Some of the excavated material that is relatively free of cattail seed and viable roots would be utilized on the site to create somewhat higher elevations within the wetland where revegetation would be done to enhance the vegetative diversity and quality of the wetland complex (see Sections 2.1 and 2.2 for more detail on the proposed excavation). The proposed excavation plan also includes the excavation of linear wetlands to function as shallow channels to connect the stormwater outfall near the proposed floodwall and the proposed wetland enhancement area to the wetlands and previously constructed pond to the south. The proposed plan also would include a shallow scrape to remove cattails from the enhancement site. 1.3.2 Wetland Enhancement The plan also includes a revegetation plan that contains provisions for site preparation, seeding/planting, and monitoring/maintenance with a goal of increasing vegetation community types, reducing invasive species, and improving the diversity of existing vegetation communities to increase functions in the wetland as well as improve the aesthetic appeal of the wetland. The proposed vegetation plan, which includes performance standards to gauge the success of the project, is described in Section 2.0 and shown in Appendix B. 1.4 PROJECT PURPOSE AND NEED As described above, the project purpose and need is to provide floodplain mitigation for a proposed floodwall and also to enhance the quality of vegetation communities that are dominated by monotypic invasive cattails. The project purpose and need are described in greater detail in Attachment C of the Joint Permit Application. 1.5 WETLANDS AND AQUATIC RESOURCES The proposed project area is located within a wetland that is a MN DNR Public Water Wetland adjacent to Minnehaha Creek, which is a MN DNR Public Water Stream (See Figure 3). The wetland on the proposed project site is identified on the revised National Wetlands Inventory (NWI) as a Type 3 shallow marsh/Type 1 seasonally flooded basin wetland. According to the previously-completed McRAM analysis of the wetland from 2001, the wetland at that time was classified as a floodplain forest with eastern cottonwood (Populus deltoides) dominant and lake sedge (Carex lacustris) and river bulrush (Schoenoplectus fluviatilis) common in the herbaceous stratum. A wetland delineation was most recently completed on the site in the vicinity of the proposed floodwall construction in October 2015. The approval of the wetland boundary is pending in May 2016. The approximate wetland boundary is shown in Figure 5. The characteristics of the wetland on the site are described further in Section 1.5.1 below. The proposed project would result in excavation and the disturbance of vegetation within the wetland on the site. Proposed work in the wetland is quantified in Part Four of the Joint Permit Application, and shown in Figure 6 and the grading plan in Appendix A. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 40 1.5.1 Existing Wetland Characteristics 1.5.1.1 Hydrology and Soils The wetland is located in a floodplain setting adjacent to Minnehaha Creek, and periodically floods when water levels are high in the creek. Shallow groundwater is likely the primary driver of hydrology in the wetland but the wetland also receives significant stormwater flow from the surrounding area from several outfalls. As a result of the stormwater input and floodplain setting, water levels in the wetland can experience drastic changes and significant bounce throughout the year. The wetland essentially functions as a seasonally flooded basin, and hydrologic conditions can vary from water being approximately 1.5 feet below the ground surface to the area being inundated with 3 feet of water under extreme flooding conditions. Water in the wetland ultimately flows south towards Minnehaha Creek through sheet flow and some shallow intermittently connected channels observed in the basin. Soils in the wetland were observed to be approximately 18 inches of organic material over sand. Historic fill materials are also present throughout the wetland basin and are generally associated with woody vegetative cover. 1.5.1.2 Vegetation Communities The existing vegetation communities in the wetland were determined based on a site visit conducted in April 2016 and are shown in Figure 5. The existing vegetation community is currently classified as a Type 1/2 seasonally flooded basin/floodplain forest/fresh (wet) meadow (Cowardin PEMA, PFOA, PEMB). The wetland south of the proposed enhancement area also contains an excavated open water pond area classified as a deep marsh that was constructed as part of a stream channel restoration project in approximately 2008. In comparison to the 2001 inventory, cottonwoods are still observed to be dominant in forested portions of the wetland complex; however, only a few, small remnant patches of lake sedge and river bulrush are still present in the wetland. The vegetation community in the interior of the wetland is currently made up almost exclusively of narrow leaf and hybrid cattail, with some other emergent species observed in low density. The vegetation community in the wetland has been degraded and it’s low quality is discussed in more detail in Section 1.5.1.3 below and in Section 2.0. Photographs of existing vegetation communities are shown below. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 41 Vegetation Community Dominated by CattailFloodplain Forest/Seasonally Flooded BasinSeasonally Flooded Basin Dominated by CattailCity Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 42 Existing Seasonally Flooded Basin Dominated by Cattail near Proposed Floodwall LocationFloodplain ForestExcavated PondVegetation Community in Proposed Excavated Channel AreaCity Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 43 1.5.1.3 Wetland Functions Wetland functions were previously determined for the wetland in 2001 by a modified MnRAM (McRAM). The functional assessment scores were revised based on an April 2016 site visit and compared to the 2001 functional ratings in Table 1. Based on the review of this information, the wetland historically and presently was rated high for the Maintenance of Hydrologic Regime, Downstream Water Quality Protection, and Flood/Stormwater Attenuation categories. This demonstrates important functions that the wetland provides for the watershed that should be maintained by the project. Notable differences in ratings between 2001 and 2016 in the Vegetative Diversity, Wildlife Habitat, and Aesthetics categories demonstrate functions that have been degraded in the wetland as well as potential opportunities for improvement in wetland functions. Table 1-Historical and Existing Wetland Functional Assessment 2001 Existing 2016 Wetland ID Size 14.77 14.77 Cowardin Type PFO1A PFO1A/PEMA Circular 39 Type Type 1Type 1/Type 2 Eggers and Reed Vegetation Community Floodplain Forest Floodplain Forest/Seasonally Flooded Basin/Fresh (wet) Meadow Hydrologic Setting Floodplain Floodplain Vegetative Diversity Moderate Low Maintenance of Hydrologic Regime High High Downstream Water Quality Protection Exceptional Exceptional Maintenance of Wetland Water Quality Moderate Moderate Flood/Stormwater Attenuation High High Shoreline Protection Moderate Moderate Groundwater Interaction Recharge Recharge Wildlife Habitat Moderate Low Fishery Habitat Exceptional Low Aesthetics Hi gh Mod e rate Flood Sensitivity Moderate Moderate D‐117‐21‐20‐006 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 44 2.0 Wetland Enhancement Plan The goal of the wetland enhancement plan for the site is to improve the diversity and quality of vegetation communities on the site and maintain or improve other wetland functions. The maintenance or improvement of existing functions that the wetland scores well in and the improvement of degraded wetland functions will result in “functional lift”. The approximate boundaries of proposed wetland vegetation communities are shown in Figure 7, and Appendix B provides a conceptual plan of the proposed vegetation communities, as well as a representative cross-section of the proposed communities. 2.1 EXCAVATION AND SCRAPING As described previously in Section 1 and shown in Figure 6 and the grading plan in Appendix A, the project proposes the excavation and shallow scraping of portions of the wetland that are dominated by a monotypic stand of invasive cattails. Vegetation in areas along the wetland fringe containing trees and shrubs will be maintained and these areas will be avoided by the proposed excavation and scraping. 2.1.1 Excavation Approximately 0.5 to 3 feet of material is proposed to be excavated from the wetland over approximately 1.1 acres. The proposed excavation would be conducted to have an undulating wetland bottom ranging from approximately 883 to 884 feet in the proposed deep marsh/shallow marsh areas in the interior of the wetland and 884 to 885 feet in the proposed fresh (wet) meadow/seasonally flooded basin wetland fringe. This area roughly corresponds to the naturally lowest parts of the site which are almost completely dominated by invasive cattails. The grading plan also includes the creation of topographically higher “islands” in the interior of the excavated areas in order to further increase vegetation community interspersion and provide more diversity and habitat on the site. Sideslopes of the interior excavation area are proposed to be 5:1 or flatter to allow for stability and for different vegetation species with various water depth and duration tolerances to establish in conditions to which they are suited. The interior area of the wetland where the excavation of approximately 2,500 cubic yards of material is proposed would provide more than the necessary volume required for floodplain mitigation as well as shallow open water and deep marsh habitat with water levels varying from approximately 0.5 to 2.5 feet under most conditions. The creation of these types of vegetation communities would increase the interspersion of vegetation communities on the site and would serve to break up the dense cover of cattail, allowing edges for other species to develop. The proposed excavation of the linear wetland/shallow channel areas south of the proposed enhancement area would facilitate stormwater flow from the hospital grounds and provide a connection from the proposed enhancement area to the wetland to the south. The proposed channels would be constructed with a bottom elevation of 883 feet, with an approximate 4 foot wide bottom with 4:1 slopes. The channels would have a flat grade and are essentially linear wetland areas that would allow water a path to flow through the wetland. The channels would also provide diversity of habitat and break up cattail cover as well as providing a aesthetic point of interest from the boardwalk. The constructed channels would not alter the hydrology of the adjacent wetland basins. Most of the material from the excavation will be disposed of off-site, with the exception of some of the material from the deeper excavation being spread along the wetland fringe in City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 45 order to provide areas with slightly higher elevation that can support woody cover and fresh (wet) meadow emergent species. This material is proposed to be used as cover in an attempt to suppress or reduce cattail regrowth, since the material from the deeper excavation should have fewer cattail seeds and viable root systems. Areas where material is placed within the wetland would have a final elevation of 885 to 886 feet, which is approximately 1 foot lower than the wetland boundary and would not result in the conversion of wetland to upland. 2.1.2 Scraping The project also proposes to conduct a shallow scrape over approximately 1.5 acres of the site to physically remove cattails from the wetland. The shallow scrape would remove the heavy cattail vegetative debris from previous years as well as the existing plants and root systems. The material from the scraped area would be disposed off-site in order to remove as much of the cattail plant material from the site as possible. 2.2 VEGETATION ENHANCEMENT 2.2.1 Site Preparation The proposed excavation and shallow scrape will also serve as the first component of site preparation for vegetation enhancement on the site. As described in the previous section, the shallow scrape will serve to remove cattails from the site. If construction is completed in Winter 2016/2017 and a spring seeding is planned, herbicide may be applied to new growth of cattails and other invasives in Spring 2017 prior to the seeding and planting of native species. 2.2.2 Seeding/Planting Plan The plan for re-vegetating the site after grading is complete would include re-seeding the shallow scrape areas along the wetland fringe and on the created islands with a native wet meadow seed mixture, planting plugs of selected emergent species within the shallow marsh and fringe of deep marsh/open water areas, and planting tree and shrubs in topographically higher areas of the wetland. 2.2.2.1 Emergent Wetland Species Specifics regarding the number of plugs and exact species mix in the emergent fringe areas would be determined at a later date when a seeding plan is finalized for construction. The seed mix and list of live plugs that would be planted on the site would include species that are suited to living in floodplain areas that may experience frequent and sudden increases in water levels. Species that are also known to aggressively compete with cattail in this environment will also be used. The primary emergent species seeded/planted in the emergent zone would likely include river bulrush (Schoenoplectus fluviatilis), lake sedge (Carex lacustris), softstem bulrush (Schoenoplectus tabernaemontani), three-square bulrush (Schoenoplectus pungens), with bur reed (Sparganium eurycarpum) and arrowhead (Sagittaria latifolia) also options. Within the areas proposed for cattail removal through shallow scraping, State Seed Mix 34-271 or a similar customized seed mix is proposed to be used within the wet meadow zone. The seed mix would be modified to include species that aggressively colonize a site and can compete with invasive cattails. The shallow marsh/emergent fringe zone would be seeded with State Seed Mix 34-181 or a similar seed mix customized with species that would be able to compete with cattail. 2.2.2.2 Trees/Shrubs The enhancement plan also will include the enhancement of existing areas with woody cover in the floodplain forest and upland forest areas and the establishment of new floodplain City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 46 forest and shrub swamp communities. Supplemental tree plantings would lend diversity, shading and improved aesthetics to the wetland complex. Enhancement activities in existing wooded areas would likely include buckthorn removal and planting of native tree and herbaceous species. Areas proposed for the establishment of floodplain forest and shrub swamp communities would be located in topographically higher portions of the wetland (approximately 885.5 to 887 feet in elevation). Trees and shrubs were observed growing above the approximate elevation of 885.5 so it is assumed that planted trees and shrubs would survive if planted at similar elevations. Proposed tree species that would be planted are primarily species that are adapted to surviving in floodplains, including silver maple (Acer saccharinum) and hackberry (Celtis occidentalis). It is assumed that other species already observed in the floodplain forest (cottonwood, willows, ash) would continue to establish in the enhanced wetland area as well. An attempt will also be made to establish tamarack (Larix laricina) in topographically higher wetland areas without existing tree cover. Red osier dogwood (Cornus alba) would be planted in the fringe of floodplain forest areas to supplement existing shrub species (primarily willow) and establish a shrub swamp community. 2.3 PERFORMANCE STANDARDS AND PROJECT GOALS Due to the existing dominance by narrow leaf and hybrid cattail, it is anticipated that maintaining a vegetation community with low cover of invasive species will be a significant challenge for the project. The dense cover of invasive species was considered when developing performance standards and project goals for the enhancement in order to set realistic goals for the site. Since the primary goal of the wetland enhancement plan is to improve the quality of the vegetation communities in the wetland and maintain or increase wetland function scores (“functional lift”), the Applicant proposes to evaluate the site by comparing existing floristic quality and wetland function ratings to proposed target floristic quality and wetland function assessment ratings. Specifically, the Rapid Floristic Quality Assessment (RFQA) will be used to assess floristic quality and McRAM will be used to assess wetland function ratings. The success of the project will be measured by comparing the condition against the performance standards and also by using the District’s future proposed Ecosystem Evaluation program to quantify ecosystem service improvements from the enhancement of the wetland. The District is currently developing this Ecosystem Evaluation program to grade a subwatershed’s ability to provide identified ecosystem services. One of the primary features being assessed are wetlands, which provide a number of direct ecosystem services such as flood control as well as supporting services such as habitat, biodiversity,and water quality benefits. The ability of a wetland to provide these services is highly dependent on the position in the watershed, hydrology, and plant communities. This proposed enhancement supports overall District goals of improving overall ecosystem services in the watershed by improving ecosystem services in the wetland, which in turn supports improvement in the watershed level ecosystem services. This approach specifically focuses on improving the overall functions of wetlands and watersheds within the District boundaries instead of simply maintaining or increasing the quantity of wetlands. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 47 Table 2 compares the historic (2001), existing, and proposed wetland functions. Chart 2.1, 2.2, and 2.3 compare the floristic quality in the existing wetland communities to the proposed wetland communities. 2.3.1 Functional Assessment As demonstrated in Table 2, the proposed enhancement would meet the goals of the project to maintain existing high functions in the wetland while improving other functions. The proposed enhancement project would result in a mix of vegetation communities in the wetland, including floodplain forest, seasonally flooded basin, fresh (wet) meadow, shallow marsh, deep marsh, and shrub swamp, in comparison to the floodplain forest/seasonally flooded basin present historically and under the existing condition. The proposed project would improve the vegetative diversity, wildlife habitat, and aesthetic functional ratings in comparison to the existing condition and restore them or improve them in comparison to the condition in 2001. Table 2-Historical, Existing, and Proposed Functional Assessment 2.3.2 Floristic Quality Site specific floristic quality standards that are realistically attainable while still providing an improvement in wetland functions are proposed for the site by comparing the quality of the 2001 Existing 2016 Proposed Wetland ID Size 14.77 14.77 14.77 Cowardin Type PFO1A PFO1A/PEMA PEMA/PFO1A/PEMB/PS SB/PEMC/PEMG Circular 39 Type Type 1Type 1/Type 2 Type 1/Type 2/Type 3/Type 4/Type 6 Eggers and Reed Vegetation Community Floodplain Forest Floodplain Forest/Seasonally Flooded Basin/Fresh (wet) Meadow Floodplain Forest/Shrub Swamp/Seasonally Flooded Basin/Wet Meadow/Shallow Marsh/Deep Marsh Hydrologic Setting Floodplain Floodplain Floodplain Vegetative Diversity Moderate Low Moderate Maintenance of Hydrologic Regime High High High Downstream Water Quality Protection Exceptional Exceptional Exceptional Maintenance of Wetland Water Quality Moderate Moderate Moderate Flood/Stormwater Attenuation High High High Shoreline Protection Moderate Moderate High Groundwater Interaction Recharge Recharge Recharge Wildlife Habitat Moderate Low Moderate Fishery Habitat Exceptional Low Moderate Aesthetics High Moderate High Flood Sensitivity Moderate Moderate Moderate D‐117‐21‐20‐006 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 48 existing vegetation community to the proposed enhanced vegetation community as measured by RFQA scores. Proposed preliminary standards developed for vegetation communities are described in the following sections. 2.4 VEGETATION STANDARDS A RFQA was performed on the vegetation communities within the subject wetland and scores and condition category assessment ratings were assigned to each vegetation community. Please note that the RFQA was combined for the seasonally flooded basin/fresh (wet) meadow and compared to the condition category score for fresh (wet) meadow since a standard does not exist for seasonally flooded basins. The existing and proposed condition category scores for the shallow marsh and fresh (wet) meadow are shown in Charts 2.1, 2.2, and 2.3 below. The proposed goal RFQA scores were developed by entering information for the preferred vegetation community with a realistic assessment of the cover of natives and invasive species that would likely be present. Generally, the RFQA scores are improved by reducing invasive cover while increasing the number of and coverage by native species. The increase in RFQA scores would demonstrate an improvement in the quality of the vegetation communities as well as a reflection of functional lift in the biodiversity and wildlife habitat functions/ecosystem services. In the floodplain forest (Chart 2.1), reducing the cover of buckthorn and other invasives such as reed canary grass while establishing native cover of trees such as silver maple would result in raising the score from the “poor” (1.5) category to “good” (2.7). Chart 2.1 Floodplain Forest RFQA Assessment (Existing and Proposed) Reducing the cover of invasive species such as reed canary grass and cattail while establishing native Carex and Schoenoplectus species would result in an improvement from 1.5 2.7 Fair Exceptional Good 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 5.4 Condition Category (wC score)Floodplain Forest RFQA Assessment Existing Condition City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 49 “poor” (0.4) to “fair” (2.4) condition in the fresh (wet) meadow/seasonally flooded basin vegetation community. Chart 2.2 Fresh (wet) Meadow RFQA Assessment (Existing and Proposed) While there is no existing shallow marsh community to compare the proposed quality of the proposed shallow marsh community to, the proposed enhancement plan goal is to develop a shallow marsh community that contains several native emergent species (primarily Schoenoplectus) with reduced cover of invasive cattail. This would result in a RFQA score on the upper end of the “fair” range (3.5). Chart 2.3 Shallow Marsh (RFQA) Assessment (Existing and Proposed) 0.4 2.4 Fair Exceptional Good 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 Condition Category (wC score)Fresh Meadow/Seasonally Flooded Basin RFQA Assessment Existing Condition Proposed Post Restoration Condition Poor 0.0 3.5 Fair Exceptional Good 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 5.4 Condition Category (wC score)Shallow Marsh RFQA Assessment Before Project After Project City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 50 2.5 PROPOSED MONITORING AND MAINTENANCE Monitoring visits to prescribe maintenance activities will occur throughout the growing season for the first three years following enhancement and reestablishment. Monitoring will be conducted in the spring (early growing season), summer (peak of growing season), and fall (end of growing season) in each monitoring year. A vegetation restoration contractor will be hired to conduct maintenance activities. A concern with vegetation enhancement projects involving attempts to control invasive species is incomplete restoration efforts and the resurgence of species such as narrow leaf cattail in the wetland. Control of any additional invasive species (e.g. purple loosestrife) will also help prevent new invasive species from becoming established within the wetland complex. Maintenance activities proposed for the site will likely include mowing, herbicide application, and mechanical removal. Continued maintenance procedures will be prescribed following site monitoring visits and will most likely focus on removing narrow leaf and hybrid cattail. It will likely be impossible to completely eradicate these invasive species. However, the goal will be to control these species at a cover level that allows for native species that can compete with cattail to become well established in the wetland basin. It is likely that more intensive maintenance will be required during the first few years following the initial enhancement and revegetation efforts. Assuming that the site responds well to initial enhancement efforts, maintenance efforts will likely decrease following Year 3 after initial enhancement efforts. As stated previously, performance goals outlined in Section 2.4 will be used as guidelines to direct maintenance efforts on the site. 2.6 PROPOSED SCHEDULE The general plan for construction is to conduct the proposed excavation during the winter of 2016/2017. Before the proposed revegetation plan is implemented, it may be necessary to treat invasive/weedy species with herbicide in the spring of 2017 before seeding and planting. The site would be assessed in the spring of 2017 and a plan for herbicide application would be made at that time. The exact plan for treatment would depend on the severity of the invasive/weed issues and what species required treatment. Planting and seeding would follow herbicide treatments in the spring of 2017. City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 51 Figures City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 52 Site Location T28 R24 S6 T28 R24 S7 T28 R24 S18 T28 R24 S19 T29 R24 S31T117 R21 S8 T117 R21 S9 T117 R21 S16 T117 R21 S17 T117 R21 S18 T117 R21 S19 T117 R21 S20 T117 R21 S21 T117 R21 S28 T117 R21 S29 T117 R21 S30 T117 R21 S31 T117 R21 S32 T117 R21 S33 Copyright:© 2011 National Geographic Society, i-cubed PARK NICOLLET Site Location Map Figure 1 2,000 0 2,0001,000 Feet ±Minneapolis South 7.5 Minute Quadrangle (USGS: 1973) Path: L:\5981\01\mxd\Figure 1-Site Location Map.mxdDate: 5/3/2016 Time: 7:46:10 AM User: BolWD0186 MAY 2016 Hennepin County Carver County Wright County Dakota County Anoka County Scott County City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 53 PARK NICOLLET Proposed Floodplain Impacts Figure 2 200 0 200100 Feet ±Minneapolis South 7.5 Minute Quadrangle (USGS: 1973) Path: L:\5981\01\mxd\Figure 2-Proposed Floodplain Impacts.mxdDate: 5/3/2016 Time: 7:56:32 AM User: BolWD0186 MAY 2016 Proposed Floodwall Location (1175 CY of Floodplain Impact) Alternate Floodplain Mitigation Location Legend Proposed Impacted Floodplain Area Floodplain Mitigation/Wetland Enhancement Area 100 Year Floodplain (Elevation 890.1 ft) City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 54 Mi n n e h a h a C r e e k Unnamed(27-662 W) Unnamed(27-662 W) Unnamed(27-662 W) PARK NICOLLET MN DNR Public Water Inventory Figure 3 300 0 300150 Feet ±Path: L:\5981\01\mxd\Figure 3-MN DNR PWI.mxdDate: 5/3/2016 Time: 8:10:29 AM User: BolWD0186 2012 Aerial Photograph (Source: MN GEO) MAY 2016 Legend MN DNR Public Water Inventory Stream MN DNR Public Water Inventory Basin Floodplain Mitigation/Wetland Enhancement Area City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 55 Mi n n e h a h a C r e e k E-117-21-20-002 Shallow Marsh D-117-21-20-006 Floodplain ForestD-117-21-20-005 Floodplain Forest Unknown7120 PARK NICOLLET NWI and MCWD FAW Figure 4 300 0 300150 Feet ±Path: L:\5981\01\mxd\Figure 4-NWI and MCWD FAW.mxdDate: 5/3/2016 Time: 8:25:05 AM User: BolWD0186 2012 Aerial Photograph (Source: MN GEO) MAY 2016 Legend MCWD FAW Wetland Boundary Floodplain Mitigation/Wetland Enhancement Area Revised NWI-Circular 39 Seasonally Flooded Basin(Type 1) Wet Meadow (Type 2) Shallow Marsh (Type 3) Deep Marsh (Type 4) Shallow Open Water (Type 5) Shrub Swamp (Type 6) Wooded Swamp (Type 7) Bogs (Type 8) Municipal and Industrial Activities Riverine Systems City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 56 Source: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community PARK NICOLLET Existing Wetland Vegetation Communities Figure 5 150 0 15075 Feet ±Path: L:\5981\01\mxd\Figurre 5-Existing Wetland Vegetation Communities.mxdDate: 5/3/2016 Time: 8:49:25 AM User: BolWD0186 APR 2016 2012 Aerial Photograph (Source: MnGeo) Legend Wetland Boundary Boardwalk Existing Wetland Vegetation Community Deep Marsh Floodplain Forest Seasonally Flooded Basin/Fresh (wet) Meadow City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 57 Excavate Wetlands1.1 acre Excavate Channel/Linear Wetlands0.3 acre Scrape Vegetation1.5 acre Source: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community PARK NICOLLET Proposed Work in Wetlands Figure 6 150 0 15075 Feet ±Path: L:\5981\01\mxd\Figurre 6-Proposed Work in Wetlands.mxdDate: 5/3/2016 Time: 11:47:36 AM User: BolWD0186 APR 2016 2012 Aerial Photograph (Source: MnGeo) Legend Wetland Boundary Proposed Work in Wetland Excavation Scrape Vegetation No Disturbance Proposed City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 58 Source: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community PARK NICOLLET Proposed Vegetation Communities Figure 7 150 0 15075 Feet ±Path: L:\5981\01\mxd\Figurre 7-Proposed Vegetation Communities.mxdDate: 5/3/2016 Time: 12:51:38 PM User: BolWD0186 MAY 2016 2012 Aerial Photograph (Source: MnGeo) Legend Wetland Boundary Boardwalk Proposed Wetland Vegetation Communities Deep Marsh Shallow Marsh Seasonally Flooded Basin/Wet Meadow Shrub Swamp Floodplain Forest City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 59 Appendix A Proposed Grading Plan City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 60 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 61 Appendix B Wetland Enhancement Conceptual Drawings City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 62 890890890889888887886886886886887889888885885NPark Nicollet ExisƟng VegetaƟon 050100WENCKASSOCIATESMethodist HospitalExisƟng Wetland(CaƩail Dominated)ExisƟng Woody Canopy Emergent Wetland(Minimal CaƩail Cover)B1City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 63 890890885886887888889884884884884883883883883885885 886 885886885885NPark Nicollet Proposed VegetaƟon Plan050100Shallow Marsh(NaƟve Seed Mix / Live Plug PlanƟngs) Seasonally Flooded Wet Basin / Wet Meadow(NaƟve Seed Mix) Shrub Swamp(Tree / Shrub PlanƟngs) Deep Marsh(Live Plug PlanƟngs on Fringe) Floodplain ForestLive Plug PlanƟngs on Fringe ExisƟng Floodplain Forest (Enhance ExisƟng VegetaƟon)ExisƟng Upland Woody Canopy (Enhance ExisƟng VegetaƟon)Louisiana AveLouisiana CircleWENCKASSOCIATESMethodist HospitalB2City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 64 8858808758908958858808758908951” = 10 FT Vertical1” = 50 FT Horizontal100 200 300 400 500 6000885880875890895Shallow Marsh < 1’Shallow Marsh < 1’Shallow Marsh < 1’Shallow Marsh < 1’Deep Marsh > 1’Deep Marsh > 1’Shrub SwampUpland WoodlandFloodplain ForestLouisiana Ave SAccess RoadUpland WoodlandWet MeadowSeasonally Flooded Basin/Wet MeadowNESWPark Nicollet B3Proposed SecƟonWENCKASSOCIATESMethodist HospitalWetland BoundaryWetland BoundaryCity Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood StoragePage 65 Toll Free: 800-472-2232 Email: wenckmp@wenck.com Web: wenck.com MINNESOTA COLORADO GEORGIA NORTH DAKOTA SOUTH DAKOTA WYOMING Maple Plain Golden Valley New Hope Denver Roswell Fargo Pierre Cheyenne 763-479-4200 763-252-6800 800-368-8831 602-370-7420 678-987-5840 701-297-9600 605-222-1826 307-634-7848 Windom Woodbury Fort Collins Mandan Sheridan 507-831-2703 651-294-4580 970-223-4705 701-751-3370 307-675-1148 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 66 Project Component (CS-Compensatory Storage, FW - Floodwall)Permitting Schedule Tentative FLOODWALL Schedule* Tentative COMP STORAGE Schedule* CS - Draft Design Phase Agreement (Initial Terms/Scope/Costs)March 4, 2016 CS - Design Phase Agreement Approval (MCWD Board Meeting)March 24, 2016 City of St. Louis Park - Submit CUP, Variance Applications April 4, 2016 CS - Design/Regulatory Feasibility Review Complete April 8, 2016 CS/FW - Submittal to Agencies, Permitting - Joint Notification - LGU, MnDNR, USACE - MCWD - Permits - No Rise Certificate - NPDES - Stormwater Permit April 13, 2016 (Mtg with USACE, MnDNR) April 15, 2016 - Submit to USACE, MnDNR FW - 95% Design Documents April 29, 2016 City of St. Louis Park - Planning Commission 5/4/2016 (TENTATIVE 5/18) PENDING Submittal to MCWD May 5, 2016 MCWD Board Meeting May 26, 2016 FW - Final Bid Documents and Cost Estimate June 3, 2016 City of St. Louis Park - City Council June 6, 2016 MCWD Board Meeting (2nd if Necessary)June 9, 2016 FW - Bidding June 13, 2016 CS - 60% Draft Design Documents June 24, 2016 Acquire Permits July 15, 2016 July 15, 2016 FW - Award Project July 15, 2016 FW - Pre-Construction Meeting August 1, 2016 FW - Construction Start August 15, 2016 CS - 95% Design Documents August 15, 2016 CS - Draft Construction Phase Agreement - MCWD/PNHS August 15, 2016 CS - Final Bid Documents and Cost Estimate September 15, 2016 CS - Construction Phase Agreement - Approval (MCWD Board Meeting)September 15, 2016 CS - Bidding September 15, 2016 CS - Award Project October 3, 2016 CS - Pre-Construction Meeting October 14, 2016 FW - Construction Completion October 28, 2016 CS - Construction Start November 1, 2016 CS - Construction Completion January 31, 2017 Park Nicollet Floodwall Project TENTATIVE OVERALL PROJECT Schedule * Tentative schedule is subject to change based on coordination meetings, reviews, and agency approvals. Construction timeframe dependent on final design, bidding, permitting and weather conditions. P:\Mpls\23 MN\27\23271380 Park Nicollet Flood Risk Mgmt\ProjRiskMgmt\Schedule\Schedule v0.2.xlsx 5/6/2016 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 67 LOUISIANA AVE SEXCEL S I O R B L V D ALABAMA AVE SCity Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 68 • • City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 69 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 70 DRA F T - - - - - - - . - . City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 71 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 72 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 73 • • á City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 74 City Council Meeting of June 20, 2016 (Item No. 8b) Title: Floodwall CUP and a Variance Request for Compensatory Flood Storage Page 75