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HomeMy WebLinkAbout2014/06/02 - ADMIN - Agenda Packets - City Council - Regular AGENDA JUNE 2, 2014 6:30 p.m. SPECIAL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. 2013 Financial Statements – Auditors Discussion and Review Written Reports 2. Update Connect the Park! 7:20 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes May 5, 2014 4. Approval of Agenda 5. Reports 5a. Approval of EDA Disbursements 6. Old Business – None 7. New Business – None 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. Presentation Accepting Monetary Donation from Loop Minnesota and Hearing Loss Association of America ($1,000 each) 2b. Beyond The Yellow Ribbon Coalition Update 2c. Retirement Recognition Resolution for Assistant Fire Chief Mark Windschitl 2d. 2013 Financial Statements – Auditors Presentation 3. Approval of Minutes 3a. Study Session Minutes May 12, 2014 3b. City Council Meeting Minutes 19, 2014 Meeting of June 2, 2014 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 5a. Appointment of Representative to the Human Rights Commission Recommended Action: Motion to appoint citizen representative Will Poulter as Youth Commissioner to the Human Rights Commission for a term which expires August 31, 2015. 6. Public Hearings -- None 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Conditional Use Permit – D & D Autoworks Recommended Action: Motion to Adopt Resolution rescinding Resolution No. 7042 and approving the Conditional Use Permit (CUP) for D & D Autoworks to operate a motor vehicle service and repair facility at 6407 Lake Street, with conditions as recommended by staff. 8b. Preliminary/Final Plat of Frauenshuh Addition Recommended Action: Motion to Adopt Resolution approving the Preliminary and Final Plat of Frauenshuh Addition, with conditions as recommended by Planning Commission and staff. 9. Communications -- None Meeting of June 2, 2014 City Council Agenda CONSENT CALENDAR 4a. Adopt Resolution to recognize Assistant Fire Chief Mark Windschitl for his 27 years of service to the City of St. Louis Park. 4b. Approve a Temporary On-Sale Intoxicating Liquor License for Parktacular Inc. for their Annual Parktacular Celebration Block Party to be held June 13, 2014, at the Town Green located at Excelsior and Grand, 3815 Grand Way in St Louis Park. 4c. Adopt Resolution approving acceptance of a monetary donation from Loop Minnesota and Hearing Loss Association of America in the amount of $1,000 each for the installation of a Hearing Induction Loop in the Council Chambers. 4d. Accept for filing City Disbursement Claims for the period of April 26 through May 23, 2014. 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 2, 2014 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: 2013 Financial Statements – Auditors Discussion and Review RECOMMENDED ACTION: No action required. City Council is asked to provide any comments or questions it might have regarding the Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, and Report on Compliance and Internal Controls for the year ended December 31, 2013. POLICY CONSIDERATION: • Is the City Council comfortable with the information contained in the Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, Report on Compliance and Internal Controls for the year ended December 31, 2013 to allow for effective decision making? • Would the City Council desire to have any follow-up discussion on the Audit? SUMMARY: The City of St. Louis Park is required to have an independent audit performed annually. The auditors work for the City Council, not the City management team. For the presentation, David J. Mol – Partner from HLB Tautges Redpath, Ltd. will discuss the information and key financial points with the City Council. The City received a clean audit opinion, or “unmodified opinion”, which means that HLB Tautges Redpath, Ltd. believe the financial statements, as presented by city staff, fairly represents the City’s financial condition as of December 31, 2013. Staff has submitted the CAFR 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 30 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in strong financial condition. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: 1) 2013 – Comprehensive Annual Financial Report 2) 2013 – Communication for Charged with Governance 3) 2013 – Reports on Compliance and Internal Controls Prepared by: Brian A. Swanson, Controller 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, 2013 CCiittyy ooff SStt LLoouuiiss PPaarrkk,, MMiinnnneessoottaa Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 2 CITY OF ST. LOUIS PARK, MINNESOTA    COMPREHENSIVE  ANNUAL  FINANCIAL  REPORT                                  FOR THE FISCAL YEAR ENDED    DECEMBER 31, 2013          Thomas Harmening – City Manager    Prepared by:  Accounting Division        Member of the Government Finance Officers’ Association  Of the United States and Canada  Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 3 - This page intentionally left blank - Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 4 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 11 Officials of the City of St. Louis Park 12 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 94 Budgetary Comparison Schedule - Park and Recreation Fund Statement 10 98 Schedule of Funding Progress - Post Employment Benefit Plan Statement 11 99 Note to RSI 100 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 5 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 12 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 13 107 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 15 111 Capital Projects Funds: Combining Balance Sheet - Nonmajor Capital Projects Funds Statement 16 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Projects Funds Statement 17 115 Debt Service Funds: Combining Balance Sheet - Major Debt Service Funds Statement 18 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Major Debt Service Funds Statement 19 121 Redevelopment District Funds: Combining Balance Sheet - Major Redevelopment District Funds Statement 20 127 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Major Redevelopment District Funds Statement 21 131 Internal Service Funds: Combining Statement of Net Position Statement 22 136 Combining Statement of Revenues, Expenditures and Changes in Fund Net Position Statement 23 138 Combining Statement of Cash Flows Statement 24 140 General Fund: Balance Sheet Statement 25 145 Summary Financial Report: Schedule of Revenues and Expenditures for General Operations - Governmental Funds Statement 26 146 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 6 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Position by Component Table 1 148 Changes in Net Position Table 2 150 Governmental Activities Tax Revenues by Source Table 3 155 Fund Balances of Governmental Funds Table 4 156 Changes in Fund Balances - Governmental Funds Table 5 158 Revenue Capacity: Assessed Value/Tax Capacity Value and Estimated Market Values of all Taxable Property Table 6 160 Property Tax Rates - Direct and Overlapping Governments Table 7 162 Principal Property Taxpayers Table 8 163 Property Tax Levies and Collections Table 9 164 Debt Capacity: Ratios of Outstanding Debt By Type Table 10 165 Ratios of General Bonded Debt Outstanding Table 11 166 Direct and Overlapping Governmental Activities Debt Table 12 167 Legal Debt Margin Information Table 13 168 Pledged Revenue Bond Coverage Table 14 170 Demographic and Economic Information: Demographic Statistics Table 15 171 Principal Employers Table 16 172 Operating Information: Full-Time Equivalent Employees by Function Table 17 173 Operating Indicators by Function Table 18 174 Capital Asset Statistics by Function Table 19 175 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 7 - This page intentionally left blank - Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 8 I. INTRODUCTORY SECTION 1 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 9 - This page intentionally left blank - 2 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 10 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 11 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 suburb 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 45,505. 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 August 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 15. The council is required to hold public hearings on the proposed budget and to adopt a final budget no later than December 28. 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 94 as part of the basic financial statements for the governmental funds. 4 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 12 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 efforts and relatively stable values on existing properties have resulted in nominal value changes of less than 10% over the past five years. This equates to superior performance versus the majority of communities in the metro area. The City, due to its location and strong commitment to housing maintenance, has experienced smaller declines in housing prices and lower rates of foreclosure than many other communities in the Twin Cities metropolitan area. The City of St. Louis Park continues to have lower unemployment than the state and national averages. Redevelopment 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: The West End – Consists of 40 acres strategically located at the southwest corner of I- 394 & Highway 100. The first phase of the $400 million project includes a 350,000 square foot lifestyle retail center and approximately 30,000 square feet of office space. The Shops at West End includes fashion boutiques, a wide variety of restaurants, a 14 screen movie theater, and a grocery store. Individual tenants continue to build out their individual storefronts and finish the store interiors. Currently the retail portion is 79% leased. The office space is 100% leased. 5 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 13 Recently opened is a 119-unit upscale apartment building called The Flats at West End. Another stylish apartment building will soon be coming to The West End called Millennium at West End Apartments. The new 158 unit, market rate apartment building will be six stories with two levels of underground structured parking. Amenities include an outdoor park with landscaping, sidewalks, seating areas, dog walk area and raised vegetable garden beds. Additional amenities include terraces with a water feature, gas grill, fire pit, and seating. Construction is expected to begin spring 2014 and be completed by summer 2015. Finally, an additional 16 acres is available for 1.1 million square feet of Class A office space distributed between several buildings. Hoigaard Village – This 10-acre project abutting Highway 100 involved the acquisition and removal of several blighted buildings, installation of new public infrastructure, a central green, public art, as well as construction of 420 multi-family housing units and 25,000 square feet of retail space in three separate elements. This project was completed in the summer of 2013. e2 - (Ellipse on Excelsior II) –Given the success of the Ellipse on Excelsior, the redeveloper decided to embark on a second phase next door. e2 features 58 stylish apartment units, numerous amenities along with structured underground parking. The two upscale developments will share a driveway access and 22 parking stalls for the Ellipse on Excelsior commercial uses. e2 opened in August 2013. Knollwood Mall – This is a major renovation of the existing Knollwood Mall. The renovation includes removing the interior mall and replacing it with approximately five junior box retailers which would be accessed from the outside. A three-tenant building is also proposed to be built in a former parking lot. In addition, a portion of the parking lot will be redesigned to improve traffic and pedestrian flow along with storm water, lighting, and landscaping improvements. Construction will begin in the spring of 2014 and is expected be completed later that fall. Wooddale Flats - This development proposal was approved for a former church site. It features six townhome-style buildings with 34 units and surface parking. Five of the buildings are proposed to be 3 stories and one building 2 stories. It is anticipated that construction of the buildings will be staged beginning spring 2014 and phase I is anticipated to be complete late 2014. Eliot Park – This new market-rate apartment complex has been approved consisting of two new apartment buildings with a total of 138 units, plus two new single family lots will be constructed. The development provides underground parking for residents and 20 stalls of surface parking for guests along a private driveway between the two buildings. Construction will begin early 2014. 6 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 14 Luther Fiat – This new dealership is moving into a former dealership building along the east side of Highway 100 and just south of I-394. The project includes removal of the southern portion of the building and renovation of the remaining 21,000 square feet as well as parking lot improvements and new landscaping. Construction began summer 2013 and the dealership will open in early 2014. 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 an extremely 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, 2012. This is the thirtieth 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. 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. Once again, we are submitting the Comprehensive Annual Financial Report to GFOA to determine its eligibility for another certificate. 7 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 15 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 Brian A. Swanson City Manager Controller 8 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 16 9 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 17 - This page intentionally left blank - 10 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 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 Service Districts 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 11 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review 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 Commissioner Term Expires 1/2016 Jake Spano At-Large B Councilmember EDA Commissioner Term Expires 1/2016 Susan Sanger Ward 1 Councilmember EDA Commissioner Term Expires 1/2014 Mayor Pro-tem Anne Mavity Ward 2 Councilmember EDA Vice President Term Expires 1/2014 Sue Santa Ward 3 Councilmember EDA President Term Expires 1/2014 Julia Ross Ward 4 Councilmember EDA Treasurer Term Expires 1/2014 Executive Staff Thomas Harmening, City Manager Nancy Deno, Deputy City Manager/HR Director Clint Pires, Chief Information Officer Kevin Locke, Community Development Director Brian Swanson, Controller Steve Koering, Fire Chief Brian Hoffman, Inspections Director Cindy Walsh, Operations and Recreation Director John Luse, Police Chief Debra Heiser, Engineering Director 12 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 20 II. FINANCIAL SECTION 13 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 21 - This page intentionally left blank - 14 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 22 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. 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, 2013, and the related notes to the financial statements, which collectively comprise 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 23 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, 2013, 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 – Implementation of GASB 65 As described in Note 14 to the financial statements, in 2013, the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. Report on Summarized Comparative Information We have previously audited City of St. Louis Park, Minnesota’s 2012 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 9, 2013. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2012 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 information and the OPEB Schedule of Funding Progress, 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 any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 16 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 24 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, supplementary financial information, 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 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 supplementary financial information, 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 May 22, 2014, 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. HLB TAUTGES REDPATH, LTD. May 22, 2014 17 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 25 - This page intentionally left blank - 18 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 26 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, 2013. 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 3 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 $186,397,670 (net position). Of this amount, $57,228,903 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.  The government’s total net position decreased by $6,472,280.  As of the close of the current fiscal year, the City of St. Louis Park’s governmental funds reported combined ending fund balances of $57,819,430. Approximately 76 percent of this amount, $43,673,862 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 $14,342,422 (47 percent) of the total subsequent year budgeted General fund expenditures.  The City of St. Louis Park’s total bonded debt decreased by $90,000 (0.2 percent) during the current fiscal year. Principal paid during the year was $4,260,000. 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 27 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, general services, and interest on long-term debt. The business-type activities of the City of St. Louis Park include sanitary sewer, solid waste, storm water, and water operations. 20 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 28 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 ten 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, two special revenue funds, debt service, and five capital project funds, all of which are considered to be major funds. Data from the other six 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 sanitary 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 sanitary 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 29 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 benefits, compensated absences, 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 103 of this report. Other reports – Additional information related to the General Fund starts on page 145 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 $186,397,670 at the close of the most recent fiscal year. A portion of the City of St. Louis Park’s net position (62 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 30 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Position Increase Increase 2013 2012 (Decrease)2013 2012 (Decrease) Assets Current and other assets $76,067,314 $82,614,303 ($6,546,989) $13,068,134 $10,680,979 $2,387,155 Capital assets 116,537,109 116,586,491 (49,382) 31,947,331 32,528,985 (581,654) Total assets 192,604,423 199,200,794 (6,596,371) 45,015,465 43,209,964 1,805,501 Liabilities Other liabilities 11,017,246 9,931,732 1,085,514 2,387,378 1,933,284 454,094 Noncurrent liabilities 25,857,119 28,893,990 (3,036,871)11,960,475 8,781,802 3,178,673 Total liabilities 36,874,365 38,825,722 (1,951,357) 14,347,853 10,715,086 3,632,767 Net position Net investment in capital assets 96,480,493 95,020,702 1,459,791 19,127,309 22,906,086 (3,778,777) Restricted 13,560,965 18,941,172 (5,380,207) - - - Unrestricted 45,688,600 46,413,198 (724,598) 11,540,303 9,588,792 1,951,511 Total net position $155,730,058 $160,375,072 ($4,645,014) $30,667,612 $32,494,878 ($1,827,266) Governmental Activities Business-type Activities The balance of unrestricted net position ($57,228,903) may be used to meet the government’s ongoing obligations to citizens and creditors. Governmental activities – Governmental activities decreased the City of St. Louis Park’s net position by ($4,645,014). This decrease relates primarily to a planned spend down or resources for projects within the City. Business-Type activities – Business-type activities decreased the City of St. Louis Parks’ net position by ($1,827,266). This decrease is primarily due to a planned spend down of resources for projects within the City. 23 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 31 City of St. Louis Park Management’s Discussion and Analysis 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 2013 2012 (Decrease) 2013 2012 (Decrease) Revenues Program revenues Charges for services $6,429,434 $7,133,133 ($703,699) $15,826,482 $15,905,970 ($79,488) Operating grants and contributions 2,709,644 2,360,465 349,179 135,642 105,976 29,666 Capital grants and contributions 11,881,109 6,290,076 5,591,033 - - - General revenues Property taxes and TIF 33,610,905 31,072,178 2,538,727 - - - Franchise fees 2,211,569 1,954,557 257,012 - - - State grants and contributions not restricted to specific programs 45,266 46,422 (1,156) - - - Unrestricted investment earnings 138,899 663,978 (525,079) (3,348) 113,260 (116,608) Gain on disposal of capital assets 69,237 60,416 8,821 - - - Miscellaneous 2,199,629 2,183,685 15,944 - - - Total revenues 59,295,692 51,764,910 7,530,782 15,958,776 16,125,206 (166,430) Expenses General government 10,085,905 7,387,354 2,698,551 - - - Public safety 13,365,297 13,264,220 101,077 - - - Public information 466,043 524,012 (57,969) - - - Operations and recreation 13,487,238 15,209,548 (1,722,310) - - - Engineering 16,046,665 5,253,969 10,792,696 - - - Housing and rehabilitation 1,774,657 3,914,261 (2,139,604) - - - Housing maintenance 141,250 116,949 24,301 - - - Social and economic development 9,040,280 7,810,635 1,229,645 - - - General services - - - - - - Interest on long-term debt 1,295,298 1,245,294 50,004 - - - Water utility - - - 5,747,116 3,890,860 1,856,256 Sewer utility - - - 5,272,646 4,593,166 679,480 Solid waste utility - - - 3,614,118 2,562,985 1,051,133 Storm water utility - - - 1,390,235 1,485,390 (95,155) Total expenses 65,702,633 54,726,242 10,976,391 16,024,115 12,532,401 3,491,714 Increase (decrease) in net position before transfers (6,406,941) (2,961,332) (3,445,609) (65,339)3,592,805 (3,658,144) Transfers 1,761,927 1,660,035 101,892 (1,761,927)(1,660,035)(101,892) Change in net position (4,645,014)(1,301,297)(3,343,717)(1,827,266)1,932,770 (3,760,036) Net position, January 1 160,375,072 161,460,566 (1,085,494) 32,494,878 30,871,352 1,623,526 Prior period adjustment - 215,803 (215,803) - (309,244) 309,244 Net position, January 1, as restated 160,375,072 161,676,369 (1,301,297) 32,494,878 30,562,108 1,932,770 Net position, December 31 $155,730,058 $160,375,072 ($4,645,014) $30,667,612 $32,494,878 ($1,827,266) Governmental Activities Business-type Activities 24 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 32 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 25 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 33 City of St. Louis Park Management’s Discussion and Analysis Business-type activities - Business-type activities net position decreased in 2013. Below are the graphs showing the business-type activities revenue and expense comparisons. Revenue Sources - Business-type Activities Expense and Program Revenues - Business-type Activities 26 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 34 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 $57,819,430, a decrease of ($3,888,618) 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 $31,405,864 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 ($2,410,104), 2) to pay for capital improvements and future expenditures ($9,358,972), 3) for loans outstanding ($11,692,501), 4) for inventory and prepaid ($256,261), 5 ) for land held for resale (2,256,816) and 6) for E-911 funds ($498,922) 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 $14,342,422 while total fund balance reached $15,788,766. 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 47 percent of the total subsequent year General fund expenditures, while total fund balance represents 52 percent of that same amount. The City’s General fund balance increased $3,811,850 during the current fiscal year. Some of this increase pertains to closing out the former Park and Recreation Fund and transferring fund balance of $1,081,497. Another portion of this increase pertains to higher than anticipated license and permit revenue of $587,487. This is primarily related to increased license and permit revenues from more robust construction within the City. Also contributing to the increase in fund balance is a redistribution of property tax revenues from Hennepin County regarding closed Tax Increment Financing Districts in the amount of $965,501. Finally, operating expenditures were approximately $421,668 under budget for fiscal year 2013. Housing Rehabilitation – the decrease of ($9,046) in fund balance is due to a transfer, personnel costs and operational costs for administering eight different housing programs. Debt Service Funds - Fund balance in the debt service funds increased $30,295 primarily due to the retirement of debt. Fire Stations Bonds Fund – the increase of $525,017 in fund balance is due a transfer in from the Police and Fire Pension Fund to assist in financing the construction of the two fire stations. Permanent Improvement Revolving Fund - The decrease in fund balance of ($686,818) is due to transfers out to other funds for capital project funding.  Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 35 City of St. Louis Park Management’s Discussion and Analysis Street Capital Projects Fund – Fund balance decreased by ($220,524). Budgeted expenditures for a major street project was the main source of the decrease. Development Fund - Fund balance decreased by ($750,018). This decrease is attributable primarily to the purchase of a property and interfund loans. Redevelopment District Funds – The Redevelopment District funds are comprised of all tax increment districts in the City. The decrease in fund balance of ($4,162,233) is due to transfers out to other funds during the year. 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 $31,746,602. Total net position decreased by ($1,261,002). This decrease was primarily a result of a decrease in revenues due to seasonality in charges for services fees. 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, 20133, was $148,484,440 (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 decrease in the City of St. Louis Park’s investment in capital assets for the current fiscal year was 0.42 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, 2013, 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. 2) The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. 28 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 36 City of St. Louis Park Management’s Discussion and Analysis The City’s policy is to achieve an average rating of good (70) for all streets. In the fall of 2012, the City conducted a physical condition assessment of the streets. This assessment will be performed every two years. As of December 31, 2012, the City’s street system was rated at an Overall Condition Index (OCI) of 70, which matches the City’s policy level. 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 $1,874,596 on street maintenance for the year ending December 31, 2013. 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 $1,900,000. 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, 2013 was $1,758,697, which is only slightly lower than the actual expenditures for the year. City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Increase Increase 2013 2012 (Decrease) 2013 2012 (Decrease) Land $15,018,866 $14,984,544 $34,322 $174,844 $174,844 $ - Permanent easments 2,293,776 1,429,976 863,800 - - Buildings and structure 36,722,517 37,455,614 (733,097) 1,189,303 1,317,082 (127,779) Improvements other than buildings 11,154,090 11,256,050 (101,960) 4,709,298 4,998,578 (289,280) Machinery and equipment 4,036,774 3,646,417 390,357 3,314,702 3,652,407 (337,705) Fleet 3,240,163 3,330,060 (89,897) - - - Infrastructure - Streets 26,011,544 26,011,544 - - - - Infrastructure - Other 17,068,105 18,042,657 (974,552) 22,557,306 22,282,534 274,772 Construction in progress 991,274 429,629 561,645 1,878 103,540 (101,662) Total $116,537,109 $116,586,491 ($49,382) $31,947,331 $32,528,985 ($581,654) 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. Debt administration At the end of the current fiscal year, the City of St. Louis Park had total bonded debt outstanding of $37,840,000. Of this amount, $20,185,000 comprises debt issued for improvement and capital projects and will be repaid by ad valorem tax levies. In addition, $4,870,000 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 $12,785,000 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 $3,703,498 for compensated absences and $1,944,907 for other post-employment benefits payable. 29 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 37 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Increase Increase 2013 2012 (Decrease) 2013 2012 (Decrease) G.O. Revenue Bonds $ - $ - $ - $12,785,000 $9,600,000 $3,185,000 G.O. Tax Increment 4,870,000 6,600,000 (1,730,000) - - - G.O. Improvement 20,185,000 21,730,000 (1,545,000) - - - Compensated absences 3,556,949 3,583,709 (26,760) 146,549 174,232 (27,683) Other postemployment benefits 1,833,419 1,513,086 320,333 111,488 91,633 19,855 Total $30,445,368 $33,426,795 ($2,981,427) $13,043,037 $9,865,865 $3,177,172 Governmental Activities Business-type Activities Principal payments during 2013 totaled $4,260,000. 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 $140,130,244 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 - 76 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 2014 and beyond.  The overall tax levy for 2014 was increased 3.5 percent. All of these factors were considered in preparing the City of St. Louis Park’s budget for the 2014 fiscal year. 30 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 38 City of St. Louis Park Management’s Discussion and Analysis Department Changes and Reorganization in 2013 Review was completed regarding service delivery in the area of operations and maintenance. Operational areas reviewed included Parks & Recreation, Public Works and Facility Maintenance. This review was completed with an emphasis on innovation, flexibility, and adaptability. As a result of analysis, staff discussions, business needs and review of future work, it was determined to reorganize the existing structure of Parks & Recreation and Public Works to two new Departments: Operations and Recreation Department and Engineering Department. This structure change would shift all maintenance operations under one director, (previously Director of Parks and Recreation). This will allow the Engineering Department focus more on the large infrastructure traffic and other engineering projects within the City. This change took effect in April 2013, with changes made to all aspects financial reporting effective retroactively to January 1, 2013. Based on this change, the former Park and Recreation Fund has been merged with the General Fund, which is based on business model, needs and fund definitions. 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 Accounting Department at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota, 55416, 952-924-2500, or Brian Swanson – Controller at bswanson@stlouispark.org. 31 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 39 - This page intentionally left blank - 32 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 40 BASIC FINANCIAL STATEMENTS 33 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 41 - This page intentionally left blank - 34 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 42 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2013 With Comparative Totals For December 31, 2012 Governmental Business-Type Activities Activities 2013 2012 Assets: Cash and investments $52,677,286 $5,993,472 $58,670,758 $68,902,603 Cash held in escrow - 4,082,882 4,082,882 - Accrued interest receivable 170,869 19,508 190,377 297,588 Due from other governments 648,313 2,181 650,494 655,886 Accounts receivable 845,602 2,824,343 3,669,945 3,610,662 Taxes receivable 1,361,177 - 1,361,177 288,183 Prepaid items 168,414 299,954 468,368 524,130 Inventory 204,003 35,434 239,437 494,297 Deposits receivable 81,000 700 81,700 81,700 Internal balances 1,078,990 (1,078,990) - - Special assessments receivable 8,780,677 888,650 9,669,327 10,475,486 Loans receivable 7,794,167 - 7,794,167 7,964,747 Land held for resale 2,256,816 - 2,256,816 - Capital assets (net of accumulated depreciation): Nondepreciable 44,315,460 176,722 44,492,182 43,134,077 Depreciable 72,221,649 31,770,609 103,992,258 105,981,399 Total assets 192,604,423 45,015,465 237,619,888 242,410,758 Liabilities: Accounts payable 1,585,484 580,887 2,166,371 1,262,856 Salaries payable 1,143,059 65,306 1,208,365 1,107,633 Due to other governments 103,338 83,425 186,763 182,204 Contracts payable 1,490,984 128,105 1,619,089 1,470,465 Accrued interest payable 431,679 149,974 581,653 611,560 Deposits payable 1,127,745 5,900 1,133,645 903,580 Unearned revenue 675,092 256,197 931,289 851,160 Compensated absences payable: Due within one year 2,489,865 102,584 2,592,449 2,630,558 Due in more than one year 1,067,084 43,965 1,111,049 1,127,383 Bonds payable (net of premiums and discounts): Due within one year 1,970,000 1,015,000 2,985,000 2,845,000 Due in more than one year 22,956,616 11,805,022 34,761,638 34,943,690 Other postemployment benefits: Due in more than one year 1,833,419 111,488 1,944,907 1,604,719 Total liabilities 36,874,365 14,347,853 51,222,218 49,540,808 Net position: Net investment in capital assets 96,480,493 19,127,309 115,607,802 117,926,786 Restricted for: Tax increment 3,048,433 - 3,048,433 4,934,833 E-911 purposes 498,922 - 498,922 458,448 EMPG grant - - - - Debt service 3,703,071 - 3,703,071 3,665,655 Cable TV equipment 630,933 - 630,933 653,205 Police and fire purposes 3,545,540 - 3,545,540 4,451,662 Housing redevelopment 2,134,066 - 2,134,066 4,777,369 Unrestricted 45,688,600 11,540,303 57,228,903 56,001,992 Total net position $155,730,058 $30,667,612 $186,397,670 $192,869,950 Primary Government Totals The accompanying notes are an integral part of these financial statements. 35 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 43 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $10,085,905 $1,024,253 Public safety 13,365,297 3,109,813 Public information 466,043 - Operations and recreation 13,487,238 2,035,715 Engineering 16,046,665 1,032 Housing and rehabilitation 1,774,657 8,606 Housing maintenance 141,250 - Social and economic development 9,040,280 250,015 Interest on long-term debt 1,295,298 - Total governmental activities 65,702,633 6,429,434 Business-type activities: Water 5,747,116 5,037,067 Sewer 5,272,646 5,822,085 Solid waste 3,614,118 2,912,415 Storm water 1,390,235 2,054,915 Total business-type activities 16,024,115 15,826,482 Total primary government $81,726,748 $22,255,916 The accompanying notes are an integral part of these financial statements. 36 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 44 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2013 2012 $445,027 $250,000 ($8,366,625) $ - ($8,366,625) ($6,276,675) 749,143 75,353 (9,430,988) - (9,430,988) (5,539,532) - - (466,043) - (466,043)(524,012) 148,613 250,000 (11,052,910) - (11,052,910) (12,575,284) 475,217 10,623,736 (4,946,680) - (4,946,680) (4,256,535) - 414,922 (1,351,129) - (1,351,129) (2,186,238) 70,077 50,000 (21,173) - (21,173)(20,883) 645,908 217,098 (7,927,259) - (7,927,259) (6,509,799) 175,659 - (1,119,639) - (1,119,639) (1,053,610) 2,709,644 11,881,109 (44,682,446)0 (44,682,446) (38,942,568) 34,026 - - (676,023)(676,023) 1,218,586 - - - 549,439 549,439 1,371,111 101,616 - - (600,087) (600,087) 397,575 - - - 664,680 664,680 492,273 135,642 0 0 (61,991) (61,991) 3,479,545 $2,845,286 $11,881,109 (44,682,446) (61,991) (44,744,437) (35,463,023) General revenues: Taxes: Property taxes 26,963,176 - 26,963,176 24,625,789 Tax increment 6,647,729 - 6,647,729 6,446,389 Franchise taxes 2,211,569 - 2,211,569 1,954,557 Grants and contributions not restricted to specific programs 45,266 - 45,266 46,422 Unrestricted investment earnings 138,899 (3,348) 135,551 777,238 Gain on disposal of capital assets 69,237 - 69,237 60,416 Miscellaneous 2,199,629 - 2,199,629 2,183,685 Transfers 1,761,927 (1,761,927) - - Total general revenues 40,037,432 (1,765,275) 38,272,157 36,094,496 Change in net position (4,645,014) (1,827,266) (6,472,280) 631,473 Net position - January 1, as previously stated 160,375,072 32,494,878 192,869,950 192,331,918 Prior period adjustment - - - (93,441) Net position - January 1, as restated 160,375,072 32,494,878 192,869,950 192,238,477 Net position - December 31 $155,730,058 $30,667,612 $186,397,670 $192,869,950 Totals Net (Expense) Revenue and Changes in Net Position Primary Government Program Revenues The accompanying notes are an integral part of these financial statements. 37 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 45 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 General Fund Parks and Recreation Housing Rehabilitation Debt Service Funds 4040 Fire Station Bonds Assets Cash and investments $17,261,132 $ - $157,276 $2,458,006 $72,084 Accrued interest receivable 39,656 - 4,175 5,007 - Due from other governments 537,954 - - 87,876 - Accounts receivable 204,824 - - - - Taxes receivable - unremitted 1,148,350 - - - - Taxes receivable - delinquent 160,983 - - - - Prepaid items 52,248 - - - - Inventory 204,003 - - - - Deposits receivable - - - - - Due from other funds - - - - - Special assessments receivable - delinquent - - 46,379 - - Special assessments receivable - deferred - - 7,649,490 - - Interfund loan receivable - - - - - Loans receivable - current - - 215,000 35,000 - Loans receivable - noncurrent - - 2,912,148 1,675,000 - Land held for resale - - - - - Total assets $19,609,150 $0 $10,984,468 $4,260,889 $72,084 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $1,024,758 $ - $24,412 $1,956 $5,605 Salaries payable 1,091,445 - 3,930 - - Due to other governments 53,311 - - - - Contracts payable 24,740 - 19,125 - 66,018 Due to other funds - - - - - Interfund loan payable - - 2,825,156 - - Deposits payable 1,003,101 - - 124,644 - Unearned revenue 460,446 - - 14,646 - Total liabilities 3,657,801 0 2,872,623 141,246 71,623 Deferred inflows of resources: Unavailable revenue 162,583 - 7,679,259 1,710,000 - Total deferred inflows of resources 162,583 0 7,679,259 1,710,000 0 Fund balance: Nonspendable 256,251 - 2,912,148 - - Restricted 498,922 - - 2,409,643 461 Committed - - - - - Assigned 691,171 - - - - Unassigned 14,342,422 - (2,479,562) - - Total fund balance 15,788,766 0 432,586 2,409,643 461 Total liabilities, deferred inflows of resources, and fund balance $19,609,150 $0 $10,984,468 $4,260,889 $72,084 Fund balance reported above Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported 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 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 Special Revenue Funds The accompanying notes are an integral part of these financial statements. 38 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 46 Statement 3 Permanent Improvement Revolving Streets Capital Projects Development EDA Sidewalks and Trails Redevelopment District Other Governmental Funds 2013 2012 $1,796,082 $ - $13,517,441 $ - $5,481,088 $10,476,740 $51,219,849 $58,176,222 13,518 - 42,748 - 26,347 33,047 164,498 250,161 - - - - - 22,483 648,313 653,230 - 71,933 - - - 568,845 845,602 649,464 - - - - 46,486 - 1,194,836 118,124 - - - - 5,358 - 166,341 170,059 - - - - - - 52,248 69,731 - - - - - - 204,003 427,455 - - 50,000 - - - 50,000 50,000 1,484,082 - - - - - 1,484,082 1,014,896 4,459 - 1,962 - - 11,772 64,572 40,892 870,380 - - - - 196,235 8,716,105 9,522,581 - - 6,699,495 - - - 6,699,495 8,510,981 - - 255,289 - - - 505,289 464,635 - - 1,600,071 - 680,872 420,787 7,288,878 7,500,112 - - 2,256,816 - - - 2,256,816 - $4,168,521 $71,933 $24,423,822 $0 $6,240,151 $11,729,909 $81,560,927 $87,618,543 $104 $35,823 $150,297 $ - $5,200 $227,577 $1,475,732 $831,900 - - - - - 16,969 1,112,344 1,027,026 - - 8,101 - 23,276 2,979 87,667 114,139 - 1,154,900 - - - 66,203 1,330,986 1,387,439 - 434,815 - 97,671 - 7,607 540,093 1,014,896 - - - - 3,874,339 - 6,699,495 8,510,981 - - - - - - 1,127,745 885,580 - - - - - 200,000 675,092 628,928 104 1,625,538 158,398 97,671 3,902,815 521,335 13,049,154 14,400,889 873,932 - 1,951 - 43,224 221,394 10,692,343 11,509,606 873,932 0 1,951 0 43,224 221,394 10,692,343 11,509,606 - - 10,556,382 - - 420,787 14,145,568 14,130,029 - - - - 5,182,499 4,176,473 12,267,998 17,694,653 - - - - - 467,682 467,682 459,160 3,294,485 - 13,707,091 - - 5,923,496 23,616,243 26,273,335 - (1,553,605) - (97,671) (2,888,387) (1,258) 7,321,939 3,150,871 3,294,485 (1,553,605) 24,263,473 (97,671) 2,294,112 10,987,180 57,819,430 61,708,048 $4,168,521 $71,933 $24,423,822 $0 $6,240,151 $11,729,909 $81,560,927 $87,618,543 $57,819,430 $61,708,048 99,233,237 100,435,799 10,692,343 11,509,606 (24,926,616) (28,165,791) (431,679) (474,667) 13,343,343 15,362,077 $155,730,058 $160,375,072 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. 39 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 47 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 General Fund Parks and Recreation Housing Rehabilitation Debt Service Funds 4040 Fire Station Bonds Revenues: Property taxes $21,987,968 $ - $ - $1,937,085 $ - Tax increments - - - - - Franchise taxes - - - - - License and permits 3,069,090 - - - - Intergovernmental 2,028,598 - - 175,659 - Charges for services 2,781,680 - 8,606 - - Fines and forfeits 311,882 - - - - Special assessments - - 1,039,604 - - Interest on investments 14,180 - 6,385 1,685 - Miscellaneous 78,303 - 550,520 102,030 21,957 Total revenues 30,271,701 0 1,605,115 2,216,459 21,957 Expenditures: Current: General government 7,162,588 - - - - Public safety 12,381,968 - - - 25,272 Operations and recreation 9,445,618 - - - - Engineering 296,396 - - - - Public information - - - - - Housing and rehabilitation - - 1,715,540 - - Housing maintenance - - - - - Social economic development - - - 419,830 - Capital outlay: Public safety - - - - 163,766 Operations and recreation - - - - - Engineering - - - - - Public information - - - - - Housing and rehabilitation - - - - - Social and economic development - - - - - Debt service: Principal - - - 3,275,000 - Interest and other - - 170,831 1,127,185 - Fiscal agent fees - - - 3,895 - Bond issuance costs - - - - - Total expenditures 29,286,570 0 1,886,371 4,825,910 189,038 Revenues over (under) expenditures 985,131 0 (281,256) (2,609,451) (167,081) Other financing sources (uses): Transfers in 2,886,719 - 500,000 2,643,827 692,098 Transfers out (60,000) (1,081,497) (236,380)(4,081) - Bonds issued - - - - - Discount on bonds - - - - - Proceeds from sale of capital assets - - 8,590 - - Total other financing sources (uses)2,826,719 (1,081,497) 272,210 2,639,746 692,098 Net change in fund balance 3,811,850 (1,081,497)(9,046)30,295 525,017 Fund balance - January 1, as previously stated 11,976,916 1,081,497 441,632 2,379,348 (524,556) Prior period adjustment - - - - - Fund balance - January 1, as restated 11,976,916 1,081,497 441,632 2,379,348 (524,556) Fund balance - December 31 $15,788,766 $0 $432,586 $2,409,643 $461 Special Revenue Funds The accompanying notes are an integral part of these financial statements. 40 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 48 Statement 4 Permanent Improvement Revolving Streets Capital Projects Development EDA Sidewalks and Trails Redevelopment District Other Governmental Funds 2013 2012 $ - $ - $24,318 $ - $899,391 $810,000 $25,658,762 $24,259,861 - - - - 6,647,729 - 6,647,729 6,446,389 - - - - - 2,211,569 2,211,569 1,954,557 - - - - - - 3,069,090 3,241,813 - 10,622,301 638,408 - 2 422,279 13,887,247 2,983,191 (217) - 223,898 - - 38,822 3,052,789 3,547,900 - - - - - - 311,882 341,356 247,431 - 42,031 - - 176,502 1,505,568 2,233,715 11,979 - 25,922 - 27,527 35,628 123,306 622,450 10,704 - 1,127,299 - - 326,007 2,216,820 2,188,262 269,897 10,622,301 2,081,876 0 7,574,649 4,020,807 58,684,762 47,819,494 - - - - - - 7,162,588 6,503,965 9,293 - - - - 18,808 12,435,341 12,571,356 - - - - - 637,923 10,083,541 13,955,142 - 13,823,593 - 4,253 - 1,874,600 15,998,842 939,416 - - - - - 408,683 408,683 470,280 - - - - - - 1,715,540 3,881,500 - - - - - 141,250 141,250 116,949 - - 2,236,839 - 6,037,129 217,023 8,910,821 7,681,176 - - - - - - 163,766 2,847,957 - - - - - 930,249 930,249 636,800 - 705,099 - 93,418 - - 798,517 319,839 - - - - - 18,163 18,163 6,690 - - - - - - - 71,242 - - 179,103 - - - 179,103 48,000 - - - - - - 3,275,000 1,285,000 - - - - - - 1,298,016 1,235,118 - - - - - - 3,895 1,040 - - - - - - - 29,270 9,293 14,528,692 2,415,942 97,671 6,037,129 4,246,699 63,523,315 52,600,740 260,604 (3,906,391) (334,066)(97,671) 1,537,520 (225,892) (4,838,553) (4,781,246) 4,023 3,685,867 - - - 60,000 10,472,534 6,395,355 (951,445) - (415,952) - (5,699,753) (1,082,081) (9,531,189) (5,580,044) - - - - - - - 1,290,000 - - - - - - - (16,125) - - - - - - 8,590 885,328 (947,422) 3,685,867 (415,952)0 (5,699,753) (1,022,081) 949,935 2,974,514 (686,818) (220,524) (750,018)(97,671) (4,162,233) (1,247,973) (3,888,618) (1,806,732) 3,981,303 (1,333,081) 25,013,491 - 6,456,345 12,235,153 61,708,048 63,114,780 - - - - - - - 400,000 3,981,303 (1,333,081) 25,013,491 0 6,456,345 12,235,153 61,708,048 63,514,780 $3,294,485 ($1,553,605) $24,263,473 ($97,671) $2,294,112 $10,987,180 $57,819,430 $61,708,048 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. 41 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 49 - This page intentionally left blank - 42 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 50 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, 2013 With Comparative Amounts For The Year Ended December 31, 2012 2013 2012 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)($3,888,618) ($1,806,732) 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 (3,217,389) (3,123,501) Capital outlays 2,042,894 3,937,043 Disposal of capital assets (28,067) (3,153,765) 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. Bonds issued - (1,290,000) Principal repayments on bonds 3,275,000 1,285,000 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.42,988 5,391 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.(35,825) 15,639 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 (796,760) 3,483,159 Property taxes (3,718) (172,396) Loans (16,785) (5,615) 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. (2,018,734) (462,761) Change in net position of governmental activities (Statement 2) ($4,645,014) ($1,288,538) The accompanying notes are an integral part of these financial statements. 43 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 51 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2013 With Comparative Amounts For December 31, 2012 2013 2012 2013 2012 Assets: Current assets: Cash and investments $2,011 $270,182 $1,764,699 $2,381,349 Cash and investments held in escrow 3,388,792 - - - Accrued interest receivable - 368 6,594 12,218 Due from other governments - - 2,181 2,656 Accounts receivable 936,294 993,254 943,279 1,008,118 Prepaid items - 1,734 299,954 317,085 Deposits receivable 700 700 - - Inventories 35,434 66,842 - - Due from other funds - - 343,494 - Special assessments receivable - delinquent 90,598 113,991 232 - Special assessments receivable - deferred 663,453 662,714 134,367 135,308 Total current assets 5,117,282 2,109,785 3,494,800 3,856,734 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 889,152 889,152 22,278 22,278 Infrastructure 14,663,244 14,575,920 19,653,646 18,901,900 Machinery, furniture and equipment 4,953,257 4,953,258 262,039 262,039 Fleet - - - - Construction in progress 1,878 56,361 - 47,179 Total capital assets, at cost 25,383,987 25,351,147 20,004,074 19,299,507 Less: accumulated depreciation (12,342,107) (11,527,985) (15,708,520) (15,581,330) Net capital assets 13,041,880 13,823,162 4,295,554 3,718,177 Total noncurrent assets 13,041,880 13,823,162 4,295,554 3,718,177 Total assets 18,159,162 15,932,947 7,790,354 7,574,911 Liabilities: Current liabilities: Accounts payable 105,445 121,790 25,871 27,393 Salaries payable 50,328 36,812 8,461 8,804 Accrued flex spending - - - - Due to other governments 29,553 3,684 605 1,085 Contracts payable 64,853 28,958 47,189 98 Due to other funds 343,494 - - - Deposits payable 5,900 18,000 - - Accrued interest payable 116,224 103,629 2,600 2,729 Interfund loan payable - - - - Compensated absences payable 95,325 121,144 698 818 Bonds payable 633,800 605,400 16,000 15,500 Unearned revenue 256,197 222,232 - - Total current liabilities 1,701,119 1,261,649 101,424 56,427 Noncurrent liabilities: Compensated absences payable 14,764 16,949 29,201 28,026 Other postemployment benefits payable 80,706 66,145 17,625 14,978 Bonds payable 9,107,076 6,269,580 205,284 221,310 Total noncurrent liabilities 9,202,546 6,352,674 252,110 264,314 Total liabilities 10,903,665 7,614,323 353,534 320,741 Net position: Net investment in capital assets 3,301,004 6,948,182 4,074,270 3,481,367 Unrestricted 3,954,493 1,370,442 3,362,550 3,772,803 Total net position $7,255,497 $8,318,624 $7,436,820 $7,254,170 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 44 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 52 Statement 6 Business-Type Activities Enterprise Funds Governmental Activities 2013 2012 2013 2012 Internal 2013 2012 Service Funds $1,959,656 $2,478,356 $2,267,106 $1,771,346 $5,993,472 $6,901,233 $1,457,437 - - 694,090 - 4,082,882 - $ - 5,825 9,201 7,089 8,224 19,508 30,011 6,371 - - - - 2,181 2,656 - 645,352 644,420 299,418 315,206 2,824,343 2,960,998 - - - - 433 299,954 319,252 116,166 - - - - 700 700 31,000 - - - - 35,434 66,842 - - - - - 343,494 - - - - - - 90,830 113,991 - - - - - 797,820 798,022 - 2,610,833 3,131,977 3,267,703 2,095,209 14,490,618 11,193,705 1,610,974 - - - - 174,844 174,844 818,094 - - - - 4,767,723 4,767,723 134,520 - - 6,182,215 6,182,215 7,093,645 7,093,645 - - - 15,588,972 15,391,275 49,905,862 48,869,095 9,461,214 - - 89,099 89,099 5,304,395 5,304,396 6,607,079 - - - - - - 7,126,319 - - - - 1,878 103,540 852,757 0 0 21,860,286 21,662,589 67,248,347 66,313,243 24,999,983 - (7,250,389) (6,674,943) (35,301,016) (33,784,258) (7,696,111) 0 0 14,609,897 14,987,646 31,947,331 32,528,985 17,303,872 0 0 14,609,897 14,987,646 31,947,331 32,528,985 17,303,872 2,610,833 3,131,977 17,877,600 17,082,855 46,437,949 43,722,690 18,914,846 431,799 156,851 17,772 4,224 580,887 310,258 109,752 - - 6,517 6,928 65,306 52,544 5,225 - - - - - - 25,490 53,127 46,192 140 - 83,425 50,961 15,671 - - 16,063 6,378 128,105 35,434 159,998 - - - - 343,494 - 943,989 - - - - 5,900 18,000 - - - 31,150 30,535 149,974 136,893 - - - - - - - - - - 6,561 - 102,584 121,962 2,489,865 - - 365,200 364,100 1,015,000 985,000 - - - - - 256,197 222,232 - 484,926 203,043 443,403 412,165 2,730,872 1,933,284 3,749,990 - - - 7,295 43,965 52,270 1,067,084 - - 13,157 10,510 111,488 91,633 1,833,419 - - 2,492,662 2,147,009 11,805,022 8,637,899 - 0 0 2,505,819 2,164,814 11,960,475 8,781,802 2,900,503 484,926 203,043 2,949,222 2,576,979 14,691,347 10,715,086 6,650,493 - - 11,752,035 12,476,537 19,127,309 22,906,086 17,303,872 2,125,907 2,928,934 3,176,343 2,029,339 12,619,293 10,101,518 (5,039,519) $2,125,907 $2,928,934 $14,928,378 $14,505,876 31,746,602 33,007,604 $12,264,353 Adjustment to reflect consolidation of Internal Service fund activities (1,078,990) (512,726) Net position of business-type activities $30,667,612 $32,494,878 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 53 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 2013 2012 2013 2012 Operating revenues: Charges for services $4,552,959 $4,608,120 $5,793,663 $5,912,757 Sale of water meters - - - - Other 199,354 240,611 28,396 113,086 Rent 286,925 258,896 - - Total operating revenues 5,039,238 5,107,627 5,822,059 6,025,843 Operating expenses: Personal services 1,165,477 1,004,158 422,152 471,081 Supplies 457,857 375,106 37,709 18,649 Professional services 294,345 276,230 125,296 77,348 Insurance 35,542 40,440 56,442 51,006 Utilities 423,182 384,488 47,102 36,966 Repairs and maintenance 1,281,993 223,992 88,604 95,039 Depreciation 814,120 672,524 127,188 115,864 Disposal charges 76,475 49,831 3,800,400 3,509,764 Other 646,996 450,524 194,453 138,530 Total operating expenses 5,195,987 3,477,293 4,899,346 4,514,247 Operating income (loss)(156,749) 1,630,334 922,713 1,511,596 Nonoperating revenues (expenses): Investment income (17,951)765 4,417 52,737 Property taxes - - - - Intergovernmental revenue 34,026 - - - Miscellaneous expense (67,092) (51,348)(16,189) (29,452) Amortization of bond premiums 2,592 1,858 26 26 Net loss on disposal of assets - - - - Interest expense (260,682) (303,977)(6,265) (6,575) Issuance of debt (60,630) - - - Total nonoperating revenues (expenses)(369,737) (352,702)(18,011) 16,736 Income (loss) before transfers (526,486) 1,277,632 904,702 1,528,332 Transfers in - 1,200,000 - - Transfers out (536,641) (504,153) (722,052) (1,889,782) Total transfers (536,641) 695,847 (722,052) (1,889,782) Change in net position (1,063,127) 1,973,479 182,650 (361,450) Net position - January 1, as previously reported 8,318,624 6,630,826 7,254,170 7,617,429 Prior period adjustment - (285,681) - (1,809) Net position - January 1, as restated 8,318,624 6,345,145 7,254,170 7,615,620 Net position - December 31 $7,255,497 $8,318,624 $7,436,820 $7,254,170 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 46 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 54 Statement 7 Governmental Business-Type Activities Enterprise Funds Activities Internal 2013 2012 2013 2012 2013 2012 Service Funds $2,825,840 $2,742,401 $2,054,915 $1,977,445 $15,227,377 $15,240,723 $781,078 - - - - - - - 86,575 116,529 - - 314,325 470,226 603,600 - - - - 286,925 258,896 - 2,912,415 2,858,930 2,054,915 1,977,445 15,828,627 15,969,845 1,384,678 282,485 280,244 391,302 421,041 2,261,416 2,176,524 1,187,441 932,568 88,684 18,166 13,931 1,446,300 496,370 449,594 27,492 3,053 73,161 77,995 520,294 434,626 2,238,849 8,882 11,138 6,256 7,263 107,122 109,847 208,568 - - 28,970 20,790 499,254 442,244 - - - 31,991 123,128 1,402,588 442,159 - - - 575,443 566,905 1,516,751 1,355,293 1,347,225 2,237,737 2,136,978 - - 6,114,612 5,696,573 - 124,954 42,888 118,386 152,870 1,084,789 784,812 788,696 3,614,118 2,562,985 1,243,675 1,383,923 14,953,126 11,938,448 6,220,373 (701,703) 295,945 811,240 593,522 875,501 4,031,397 (4,835,695) 10,526 41,909 (340) 17,849 (3,348) 113,260 15,593 - - - - - - 1,308,132 101,616 101,630 - - 135,642 101,630 37,153 - - (15,610)(659) (98,891) (81,459) - - - - 218 2,618 2,102 - - - - - - - 69,237 - - (70,602) (80,074) (337,549) (390,626) - - - (12,418) - (73,048) - - 112,142 143,539 (98,970) (62,666) (374,576) (255,093) 1,430,115 (589,561) 439,484 712,270 530,856 500,925 3,776,304 (3,405,580) - - - - - 1,200,000 926,753 (213,466) (196,010) (289,768) (270,090) (1,761,927) (2,860,035) (106,171) (213,466) (196,010) (289,768) (270,090) (1,761,927) (1,660,035) 820,582 (803,027) 243,474 422,502 260,766 (1,261,002) 2,116,269 (2,584,998) 2,928,934 2,685,460 14,505,876 14,266,864 33,007,604 31,200,579 14,849,351 - - - (21,754) - (309,244) - 2,928,934 2,685,460 14,505,876 14,245,110 33,007,604 30,891,335 14,849,351 $2,125,907 $2,928,934 $14,928,378 $14,505,876 $31,746,602 $33,007,604 $12,264,353 Adjustment to reflect consolidation of Internal Service fund activities (566,264) (183,499) Change in net position of business-type activities ($1,827,266) $1,932,770 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 55 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 2013 2012 2013 2012 Cash flows from operating activities: Receipts from customers and users $4,941,363 $5,049,988 $5,859,686 $5,858,265 Receipts from interfund services provided - - - - Other receipts 199,354 240,611 28,396 113,086 Payments to suppliers (3,137,829) (1,839,101) (4,287,786) (3,947,498) Payments to employees (1,165,404) (971,368) (418,793) (466,170) Miscellaneous expense (67,092) (51,348) (16,189) (29,452) Net cash flows provided by (used in) operating activities 770,392 2,428,782 1,165,314 1,528,231 Cash flows from noncapital financing activities: Transfers in - 1,200,000 - - Transfers out (536,641) (504,153) (722,052) (1,889,782) Borrowing (payments) on interfund balances 343,494 (891,523) (343,494) 451,523 Intergovernmental receipts 34,026 - - - Intergovernmental payments - - - - Net cash flows provided by (used in) noncapital financing activities (159,121) (195,676) (1,065,546) (1,438,259) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (32,841) (1,071,093) (704,565) (166,153) Proceeds from sale of assets - - - - Transfer in of long term debt (net) - - - - Debt proceeds, net 3,473,891 - - - Unspent bond proceeds (3,388,792) - - - Principal paid on bonds (605,400) (585,400) (15,500) (15,500) Interest paid on debt (308,717) (312,773) (6,394) (6,853) Net cash flows provided by (used in) capital and related financing activities (861,859) (1,969,266) (726,459) (188,506) Cash flows from investing activities: Investment income (17,583) 397 10,041 50,678 Net increase (decrease) in cash and cash equivalents (268,171) 264,237 (616,650) (47,856) Cash and cash equivalents - January 1 270,182 5,945 2,381,349 2,429,205 Cash and cash equivalents - December 31 $2,011 $270,182 $1,764,699 $2,381,349 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 48 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 56 Statement 8 Page 1 of 2 Governmental Activities Internal 2013 2012 2013 2012 2013 2012 Service Funds $2,824,908 $2,711,073 $2,070,703 $1,963,119 $15,696,660 $15,582,445 $ - - - - - - - 781,278 86,575 116,529 - - 314,325 470,226 603,600 (3,049,750) (2,269,349) (253,124) (504,763) (10,728,489) (8,560,711) (3,566,699) (282,485) (281,185) (389,800) (423,329) (2,256,482) (2,142,052) (891,216) - - (15,610) (659) (98,891) (81,459) - (420,752) 277,068 1,412,169 1,034,368 2,927,123 5,268,449 (3,073,037) - - - - - 1,200,000 926,753 (213,466) (196,010) (289,768) (270,090) (1,761,927) (2,860,035) (106,171) - 440,000 - (159,244) - (159,244) - 101,616 101,630 - - 135,642 101,630 1,345,285 - - - - - - - (111,850) 345,620 (289,768) (429,334) (1,626,285) (1,717,649) 2,165,867 - - (193,122) (97,606) (930,528) (1,334,852) (1,638,492) - - - 132,383 - 132,383 151,313 - - - - - - - - - 706,281 - 4,180,172 - - - - (694,090) - (4,082,882) - - - - (364,100) (354,100) (985,000) (955,000) - - - (82,405) (84,820) (397,516) (404,446) - 0 0 (627,436) (404,143) (2,215,754) (2,561,915) (1,487,179) 13,902 40,311 795 16,759 7,155 108,145 26,638 (518,700) 662,999 495,760 217,650 (907,761) 1,097,030 (2,367,711) 2,478,356 1,815,357 1,771,346 1,553,696 6,901,233 5,804,203 3,825,148 $1,959,656 $2,478,356 $2,267,106 $1,771,346 $5,993,472 $6,901,233 $1,457,437 5300 Storm Water Utility Totals5200 Solid Waste Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 49 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 57 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 2013 2012 2013 2012 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) ($156,749) $1,630,334 $922,713 $1,511,596 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous expense (67,092) (51,348) (16,189) (29,452) Depreciation 814,120 672,524 127,188 115,864 Changes in assets and liabilities: Decrease (increase) in: Accounts receivable 56,960 152,288 65,314 (24,934) Special assessments 22,654 30,684 709 (29,558) Prepaid items 1,734 (1,734) 17,131 (24,654) Inventory 31,408 11,200 - - Increase (decrease) in: Accounts payable 9,524 (12,657) (2,002) 9,344 Contracts payable 35,895 (35,299) 47,091 (4,886) Deposits payable (12,100) - - - Accrued salaries payable 13,516 8,765 (343) (758) Unearned revenue 33,965 - - - Accrued flex spending - - - - Compensated absences payable (28,004) 13,541 1,055 3,572 Other postemployment benefits 14,561 10,484 2,647 2,097 Total adjustments 927,141 798,448 242,601 16,635 Net cash provided by (used) operating activities $770,392 $2,428,782 $1,165,314 $1,528,231 Supplemental schedule of noncash capital and related financing activities Amortization of bond premiums and issuance costs $2,592 $1,858 $26 $26 Disposal of capital assets $87,324 $ - $ - $751,746 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 58 Statement 8 Page 2 of 2 Governmental Activities Internal 2013 2012 2013 2012 2013 2012 Service Funds ($701,703) $295,945 $811,240 $593,522 $875,501 $4,031,397 ($4,835,695) - - (15,610) (659) (98,891) (81,459) - - - 575,443 566,905 1,516,751 1,355,293 1,347,225 (932) (31,341) 15,788 (14,326) 137,130 81,687 200 - 13 - - 23,363 1,139 - - - 433 (433) 19,298 (26,821) 18,981 - - - - 31,408 11,200 - 281,883 13,392 13,688 (95,149) 303,093 (85,070) (12,379) - - 9,685 (13,204) 92,671 (53,389) 112,406 - - - - (12,100) - - - (941) (411) (2,259) 12,762 4,807 3,281 - - - - 33,965 - - - - - - - - (629) - - (734) (2,126) (27,683) 14,987 (26,760) - - 2,647 2,097 19,855 14,678 320,333 280,951 (18,877) 600,929 440,846 2,051,622 1,237,052 1,762,658 ($420,752) $277,068 $1,412,169 $1,034,368 $2,927,123 $5,268,449 ($3,073,037) $ - $ - $666 $218 $3,284 $2,102 $ - $ - $197,696 $147,415 $285,020 $899,161 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 59 - This page intentionally left blank - 52 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 60 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 61 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 54 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 62 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Parks and Recreation Fund was closed effective January 1, 2013 and fund balance was transferred to the General Fund. The Housing Rehabilitation Fund is used to account for revenues from revenue bond fees and expenditures related to preventing deterioration of multi-unit housing. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the government. The Fire Station Bonds Fund accounts 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. 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. 55 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 63 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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. 56 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 64 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 and the Parks and Recreation special revenue 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. 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 2013, the budget was not amended. 6. Formal budgetary integration is employed as a management control device during the year for the General Fund and Parks and Recreation special revenue 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. 57 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 65 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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. 58 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 66 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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. 59 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 67 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 2013 and 2012 totaled $2,262,464 and $2,090,120, 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. 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. 60 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 68 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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 buidling improvements 5,000 Machinery and Equipment 10,000 Office eqipment 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. During 2012, the City elected to use 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, 2013, no interest was capitalized in connection with construction in progress. 61 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 69 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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 2012 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. 62 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 70 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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. 63 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 71 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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, 2012, from which the summarized information was derived. In addition, certain amounts in the prior year have been reclassified to conform with 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 72 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 U. RECLASSIFICATIONS During 2013, the City reorganized the previous functions of Parks and Recreation and Public Works to two new functions: Operations and Recreation and Engineering. Certain amounts presented as prior year data have been reclassified in order to be consistent with the current year’s presentation. V. 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 no items that qualify for reporting in this category. 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 one 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; 65 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 73 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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; 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, 2013, the bank balance of the City’s deposits was $1,628,879, 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. 66 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 74 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. At December 31, 2013, 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 $2,712,524 $2,712,524 $ - $ - $ - Money market mutual funds NR 21,187,179 21,187,179 - - - Certificates of deposit NR 4,295,948 1,202,436 3,093,512 - - Municipal bonds A - AAA 15,066,902 5,177,089 9,889,813 - - Federal National Mortgage Assn.AAA 6,920,280 - 6,920,280 - - Federal Home Loan Bank notes AAA 1,074,693 - 1,074,693 - - Federal Home Loan Mortgage Corp. notes AAA 5,999,700 - 5,999,700 - - Total $57,257,226 $30,279,228 $26,977,998 $0 $0 Total investments $57,257,226 Deposits 1,409,448 Bond escrow 4,082,882 Petty cash 4,084 Total cash and investments $62,753,640 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 67 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 75 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 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.11.03% Federal Home Loan Mortgage Corp. notes 9.56% 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, 2013, 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, 2013, the loans receivable balance was $7,794,167. 68 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 76 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Significant receivable balances not expected to be collected within one year of December 31, 2013 are as follows: Special Interfund Loans Assessments Property Loans Receivable Receivable Taxes Receivable Total Major Funds: General Fund $ - $ - $99,300 $ - $99,300 Housing Rehabilitation Fund 2,912,148 37,237 - - 2,949,385 Debt Service Fund 1,675,000 - - - 1,675,000 Permanent Improvement Revolving Fund - 8,726 - - 8,726 Development EDA Fund 1,600,071 973 - 6,801,995 8,403,039 Redevelopment District Fund 680,872 - 3,300 - 684,172 Water Utility Fund - 57,281 - - 57,281 Sewer Utility Fund - 845 - - 845 Solid Waste Fund - - - - - Nonmajor Governmental Funds 420,787 10,949 - - 431,736 Total $7,288,878 $116,011 $102,600 $6,801,995 $14,309,484 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) $160,983 Delinquent property taxes receivable (Redevelopment District)5,358 Special assessments not yet due (Permanent Improvement Revolving)873,932 Special assessments not yet due (Housing Rehabilitation)7,679,259 Special assessments not yet due (Development EDA)1,951 Special assessments not yet due (Nonmajor Funds)205,259 Bond reimbursement payments not yet due (Debt Service Fund)1,710,000 Other miscellaneous (General Fund)1,600 Other miscellaneous (Redevelopment Districtrs)37,866 Other miscellaneous (Nonmajor Funds)16,135 Total unavailable revenue for governmental funds $10,692,343 69 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 77 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 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, 2013 is as follows: Beginning Ending Primary Government Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $14,984,544 $34,322 $ - $15,018,866 Infrastructure - streets 26,011,544 - 26,011,544 Permanent easements 1,429,976 863,800 - 2,293,776 Construction in progress 429,629 1,105,455 543,810 991,274 Total capital assets, not being depreciated 42,855,693 2,003,577 543,810 44,315,460 Capital assets, being depreciated: Buildings and structures 47,277,410 394,857 232,297 47,439,970 Improvements other than buildings 20,585,151 963,334 88,232 21,460,253 Infrastructure - other 30,957,090 172,893 - 31,129,983 Machinery, furniture and equipment 7,439,559 1,179,471 778,056 7,840,974 Fleet 7,252,529 619,233 529,023 7,342,739 Total capital assets, being depreciated 113,511,739 3,329,788 1,627,608 115,213,919 Less accumulated depreciation for: Buildings and structures 9,821,796 1,106,153 210,496 10,717,453 Improvements other than buildings 9,329,101 1,055,224 78,162 10,306,163 Infrastructure 12,914,433 1,147,445 - 14,061,878 Machinery, furniture and equipment 3,793,142 631,433 620,375 3,804,200 Fleet 3,922,469 624,359 444,252 4,102,576 Total accumulated depreciation 39,780,941 4,564,614 1,353,285 42,992,270 Total capital assets being depreciated - net 73,730,798 (1,234,826) 274,323 72,221,649 Governmental activities capital assets - net $116,586,491 $768,751 $818,133 $116,537,109 70 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 78 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Beginning Ending Primary Government Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $174,844 $ - $ - $174,844 Construction in progress 103,540 - 101,662 1,878 Total capital assets, not being depreciated 278,384 0 101,662 176,722 Capital assets, being depreciated: Buildings and structures 4,767,723 - - 4,767,723 Improvements other than buildings 7,093,645 - - 7,093,645 Infrastructure 48,869,095 1,036,766 - 49,905,861 Machinery, furniture and equipment 5,304,396 - - 5,304,396 Total capital assets, being depreciated 66,034,859 1,036,766 0 67,071,625 Less accumulated depreciation for: Buildings and structures 3,450,641 127,779 - 3,578,420 Improvements other than buildings 2,095,067 289,280 - 2,384,347 Infrastructure 26,586,561 761,994 - 27,348,555 Machinery, furniture and equipment 1,651,989 337,705 - 1,989,694 Total accumulated depreciation 33,784,258 1,516,758 0 35,301,016 Total capital assets being depreciated - net 32,250,601 (479,992)0 31,770,609 Business-type activities capital assets - net $32,528,985 ($479,992) $101,662 $31,947,331 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $119,101 Public safety 459,921 Engineering 8,944 Operations and recreation 2,457,150 Public information 42,264 Economic development 130,009 Internal service 1,347,225 Total depreciation expense - governmental activities $4,564,614 Business-type activities: Water $814,122 Sewer 127,190 Storm water 575,446 Total depreciation expense - business-type activities $1,516,758 71 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 79 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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, 2013, long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rates Issued 12/31/13 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 $1,320,000 G.O. Improvement Bonds Series 2010A 5/7/2010 2/1/2031 1.25-5.7% 3,105,000 2,885,000 G.O. Improvement Refunding Bonds Series 2010B 5/7/2010 2/1/2025 2.0-3.5% 1,845,000 480,000 G.O. Improvement Refunding Bonds Series 2010C 12/29/2010 2/1/1940 3.0-5.65% 1,770,000 1,710,000 G.O. Improvement Bonds Series 2010D (BABS) 12/29/2010 2/1/2032 1.25-5.15% 13,025,000 12,500,000 G.O. Improvement Bonds Series 2012A HIA 10/17/2012 2/1/1933 0.75 - 3.90% 1,290,000 1,290,000 Total General Improvement Bonds 24,740,000 20,185,000 Tax Increment Bonds: Tax Increment Refunding Bonds Series 2004A 4/7/2004 2/1/2018 2.50-3.70% 7,490,000 - Tax Increment Refunding Bonds Series 2008B 12/11/2008 2/1/2024 3.25-4.63% 5,490,000 4,870,000 Total Tax Increment Bonds 12,980,000 4,870,000 Compensated absences payable N/A N/A N/A N/A 3,556,949 Total governmental activities 37,720,000 28,611,949 Business-Type Activities: General Obligation Revenue Bonds: Utility Revenue Bonds Series 2007A 6/5/2007 8/1/2023 4.00% 3,665,000 2,580,000 Utility Revenue Bonds Series 2008A 12/11/2008 8/1/2020 3.25-4.25% 4,075,000 3,025,000 Utility Refunding Revenue Bonds Series 2010B 5/7/2010 2/1/2025 2.0-3.5% 4,090,000 3,010,000 Utility Crossover Refunding Bonds Series 2013A 7/1/2013 8/1/2023 1.0-1.9% 4,170,000 4,170,000 Total General Obligation Revenue Bonds 16,000,000 12,785,000 Compensated absences payable N/A N/A N/A N/A 146,549 Total business-type activities 16,000,000 12,931,549 Total City $53,720,000 $41,543,498 72 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 80 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 2014 $1,630,000 $834,456 $340,000 $197,962 2015 1,180,000 799,315 355,000 185,800 2016 1,215,000 764,186 370,000 172,650 2017 765,000 734,349 395,000 157,813 2018 785,000 710,079 415,000 141,613 2019 800,000 682,791 435,000 124,613 2020 825,000 652,213 460,000 105,563 2021 855,000 618,781 485,000 84,300 2022 875,000 583,195 510,000 61,913 2023 900,000 545,327 535,000 38,400 2024 935,000 502,893 570,000 13,181 2025 965,000 456,076 - - 2026 1,000,000 407,325 - - 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 $20,185,000 $9,757,746 $4,870,000 $1,283,808 G.O. Tax Increment Bonds Governmental ActivitiesGovernmental Activities G.O. Improvement Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 73 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 81 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 2014 $1,015,000 $352,614 2015 3,190,000 319,093 2016 2,995,000 201,474 2017 910,000 100,568 2018 925,000 88,855 2019 940,000 76,693 2020 960,000 61,943 2021 460,000 45,080 2022 475,000 34,741 2023 490,000 23,201 2024 210,000 10,990 2025 215,000 3,763 Total $12,785,000 $1,319,013 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 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 82 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2013 was as follows: Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $21,730,000 $ - $1,545,000 $20,185,000 $1,630,000 G.O. tax increment bonds 6,600,000 - 1,730,000 4,870,000 340,000 Add: Premiums on bonds 8,084 - 2,405 5,679 - Discounts on bonds (172,293) - (38,230) (134,063) - Total bonds payable 28,165,791 0 3,239,175 24,926,616 1,970,000 Compensated absences 3,583,709 2,032,294 2,059,054 3,556,949 2,489,865 Total government activity long-term debt $31,749,500 $2,032,294 $5,298,229 $28,483,565 $4,459,865 Business-type activities: Bonds payable: G.O. revenue bonds $9,600,000 $4,170,000 $985,000 $12,785,000 $1,015,000 Add: Premiums on bonds 22,899 15,407 3,284 35,022 - Total bonds payable 9,622,899 4,185,407 988,284 12,820,022 1,015,000 Compensated absences 174,232 112,318 140,001 146,549 102,584 Total business-type activity long-term debt $9,797,131 $4,297,725 $1,128,285 $12,966,571 $1,117,584 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 2013A Bonds and August 1, 2016 for the Series 2008A Bonds. The City advance refunded the 2007A General Obligation Utility Revenue Bonds Bonds and 2008A General Obligation Utility Revenue Bonds 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. 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 $4,082,882 at December 31, 2013. 75 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 83 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Refunded Bonds Refunded Bonds Refunding Bonds Payment Date 2007A 2008A 2013A Escrow Account City 2014 $318,200 $497,913 $56,634 $56,634 $816,113 2015 314,600 499,613 53,513 53,513 814,213 2016 2,145,000 500,788 363,513 2,198,513 810,788 2017 - 1,840,000 790,412 1,840,000 790,412 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 $2,777,800 $3,338,314 $4,519,254 $4,148,660 $6,486,708 Debt Service Commitment 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% N/A 2012-2033 1,743,304 27,404 186,053 2004 Tax Increment Refunding Recreation Building TIF 100% N/A 2005-2018 - 1,467,239 - 2008B GO Tax Increment Street Improvements TIF 100% 100% 2009-2024 6,153,806 524,031 524,031 2007A GO Utility Revenue Utility Infrastructure Projects Utility charges 100% 100% 2008-2023 3,182,000 316,400 316,400 2008A GO Utility Revenue Utility Infrastructure Projects Utility charges 100% 100% 2009-2020 3,532,975 494,775 494,775 2010A Taxable GO Housing Imp. Area Housing Improvement Area Fee 100% 99% 2011-2031 4,407,731 246,863 249,700 2010B GO Utility Infrastructure Projects Utility charges/Special Assessments 100% 100% 2011-2025 3,953,446 977,468 977,468 2010C GO Refunding - Louisiana Crt Louisiana Court Project Operating revenues of La Crt 100% 100% 2011-2040 3,152,753 118,730 102,030 2013A GO Crossover Refunding Utility Infrastructure Projects Utility charges 100% 0% 2013-2023 4,519,254 - 29,878 Revenue Pledged Current Year 76 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 84 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 7 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) PLAN DESCRIPTION All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the internet at www.mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-800-652-9026. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.10% and 6.25%, respectively, of their annual covered salary in 2013. PEPFF members were required to contribute 9.6% of their annual covered salary in 2013. The City was required to contribute the following percentages of annual covered payroll in 2013: 11.78% for Basic Plan GERF members, 7.25% for Coordinated Plan GERF members, and 14.4% for PEPFF members. The City’s contributions to the General Employees Retirement Fund for the years ending December 31, 2013, 2012 and 2011 were $908,820, $885,317 and $857,443, respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2013, 2012 and 2011 were $893,398, $888,599 and $863,791, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by state statute. 77 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 85 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 8 OTHER POST-EMPLOYMENT BENEFITS In 2008, the City prospectively implemented the requirement of a new accounting pronouncement, GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 6, 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 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 years of age, Medicare becomes the primary insurer and the City’s plan becomes secondary. 78 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 86 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2013, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 24 Active employees 236 Total 260 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. 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, 2013, was calculated as follows: Annual required contribution (ARC)$602,190 Interest on net OPEB obligation 64,189 Adjustment to ARC (92,801) Annual OPEB cost 573,578 Contributions made during the year (233,390) Increase (decrease) in net OPEB obligation 340,188 Net OPEB obligation - beginning of year 1,604,719 Net OPEB obligation - end of year $1,944,907 For governmental activities, the net OPEB obligation has been and is anticipated to be liquidated by the Employee Administrative internal service fund. 79 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 87 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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, 2011 $366,477 $84,299 23.0% $1,332,139 December 31, 2012 377,765 105,185 27.8% 1,604,719 December 31, 2013 573,578 233,390 40.7%1,944,907 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, 2013 $0 $5,140,716 $5,140,716 0.0% $17,338,372 29.6% *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. 80 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 88 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 In the January 1, 2013 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 3% 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, 2013 was 30 years. Note 9 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, 2013 is as follows: Interfund Interfund Loan Loan Receivable Payable Major Funds: Housing Rehabilitation $ - $2,825,156 Development EDA 6,699,495 - Redevelopment District - 3,874,339 Total $6,699,495 $6,699,495 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, 2013 are as follows: Due From Due To Other Funds Other Funds Major Funds: PIR $1,484,082 $ - Street Capital Projects - 434,815 Water utility - 343,494 Sewer utility 343,494 - Sidewalks and trails - 97,671 Other: Capital replacement - 943,989 Community development - 7,607 Total $1,827,576 $1,827,576 81 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 89 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Interfund transfers at December 31, 2013 are as follows: Transfers Transfers Notes #'s In Out Notes #'s General Fund (3) (5) (9) $2,886,719 $60,000 (8) Parks and Recreation Fund - 1,081,497 (9) Housing Rehabilitation Fund (1)500,000 236,380 (3) (4) (10) Debt Service Fund (4) (6) (10) 2,643,827 4,081 (4) (6) Fire Station Bond Fund (2)692,098 - PIR Fund (4)4,023 951,445 (1) (2) (4) (5) Streets Capital Projects Fund (2)3,685,867 - EDA Fund - 415,952 (2) (4) Redevelopment Districts Fund - 5,699,753 (1) (2) (4) Nonmajor Governmental Fund (8)60,000 1,082,081 (2) (3) Water Fund - 536,641 (2) (3) (7) Sewer Fund - 722,052 (2) (3) (7) Solid Waste Fund - 213,466 (2) (3) (7) Storm Water Fund - 289,768 (2) (3) (7) Internal Service Fund (1) (2) (7) 926,753 106,171 (2) $11,399,287 $11,399,287 (1) To achieve fund balance policy and long term sustainability. (2) To provide funding for capital improvement projects. (3) For administrative and overhead costs of the General Fund. (4) To provide funding for debt service payments. (5) Transfer for special assessments. (6) To transfer Louisiana Court interest on reserve to debt service. (7) For funding technology replacement. (8) For unfunded administrative expense in CDBG fund (9) To close Parks and Recreation fund into the General Fund (10) To eliminate negative cash 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. 82 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 90 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 10 FUND BALANCE/NET POSITION A. CLASSIFICATIONS At December 31, 2013, a summary of the governmental fund balance classifications are as follows: Major Funds: General Fund: Nonspendable - prepaid items $52,248 Nonspendable - inventory 204,003 Restricted for E-911 purposes 498,922 Assigned for Inspections 550,000 Assigned for DWI enforcement 141,171 Housing Rehabilitation: Nonspendable - long-term loans receivable 2,912,148 Debt Service Funds: Restricted for debt service 2,409,643 4040 Fire Station Bonds Restricted for debt service 461 Permanent Improvement Revolving: Assigned for capital improvements 3,294,485 Development EDA: Nonspendable - interfund loan receivable 6,699,495 Nonspendable - long-term loans receivable 1,600,071 Nonspendable - land held for resale 2,256,816 Assigned for redevelopment efforts 13,707,091 Redevelopment District: Restricted for tax increment purposes 3,048,433 Restricted for housing redevelopment 2,134,066 Other Governmental Funds: Nonspendable - long-term loans receivable 420,787 Restricted for cable tv equipment purchases 630,933 Restricted for police and fire purchases 3,545,540 Committed for cable tv programming 467,682 Assigned for cable tv programming 467,538 Assigned for special service districts 315,794 Assigned for development of parks 3,572,457 Assigned for street rehabilitation 1,567,707 All Governmental Funds: Unassigned 7,321,939 Total fund balance $57,819,430 83 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 91 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 At December 31, 2013, the City reported $13,560,965 of restricted net position on the Statement of Net Position as follows: Restricted for: Tax increment $3,048,433 E-911 purposes 498,922 Debt service 3,703,071 Cable TV equipment 630,933 Police and fire purpsoes 3,545,540 Housing and redevelopment 2,134,066 Total $13,560,965 B. MINIMUM FUND BALANCE POLICY The City Council has formally adopted a fund balance policy for the General Fund and the Parks and Recreation 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, 2013, the unassigned fund balance for the General Fund was 47% of the subsequent year’s budgeted expenditures. 84 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 92 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 11 DEFICIT FUND BALANCE/NET POSITION At December 31, 2013, individual funds with deficit fund balance/net position are as follows: Amount Future Financing Source Capital Project Funds: Street Capital Projects ($1,553,605) Future transfers and MSA Sidewalks and Trails (97,671) Future transfers and MSA Redevelopment District: Eliot Park TIF District (746) Future tax increment Ellipse TIF District (79,883) Future tax increment Edgewood TIF District (772) Future tax increment Elmwood Village (2,773,245) Future tax increment Hard Coat TIF District (33,741) Future tax increment Internal Service Funds: Employee Administrative (4,670,465) Future transfers Total ($9,210,128) Note 12 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, general liability 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 85 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 93 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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, 2013, the estimated liability for unpaid claims was immaterial and therefore, has not been recorded in the financial statements. 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, 2013. 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 86 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 94 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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, 2013 the principal amount outstanding on the bonds was $2,825,000. 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, 2013 the principal amount outstanding on the note was $771,833. 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, 2013, the outstanding amount on the bonds is $1,710,000. F. ECONOMIC DEVELOPMENT AUTHORITY The Economic Development Authority (EDA) entered into a development agreement in 1993 with Park Nicollet for the redevelopment of a former landfill site on Excelsior Boulevard and within the Excelsior Boulevard tax increment district. A Hazardous Substance Tax Increment financing subdistrict (HSTI) was also established at this time to pay the costs associated with the environmental remediation. The development agreement between the EDA and Park Nicollet established a payment schedule for the EDA to reimburse Park Nicollet from the HSTI tax increment for the costs of the remediation. 87 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 95 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Based upon an initial estimate of $11,050,000 in remediation costs over 30 years, the development agreement established a cap to the EDA’s share of these costs at $9,000,000. Park Nicollet is responsible for $2,050,000 and any costs exceeding the total estimate of $11,050,000. Reimbursements to Park Nicollet are limited to the increment revenue from the HSTI. The costs associated with remediation are approximately $6,225,000. With Park Nicollet responsible for the first $1,250,000, the EDA’s liability is estimated to be $4,975,000. The development agreement stipulates EDA reimbursements to begin in 1998 and continue through 2022. The obligation was paid off in 2012 and the District was decertified in 2013. 88 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 96 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 G. CONSTRUCTION COMMITMENTS The City has active construction projects as of December 31, 2013. 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 Flood Area #25 (27th & Jersey)$47,814 Street Improvement for Excelsior Blvd 12,134 Hwy 7/Wooddale Interchange 10,596 Commercial Meter Replacement 95,198 SW Regional Trail at Beltline Blvd 12,537 Fern Hill Park Paving 10,400 Glenhurst Lift Station 14,211 2010 LED Countdown Pedestrian Indicators 16,287 Northside Park 11,570 Well Redevelopment (City Cont #121-11)25,403 Hwy 7 & Louisiana Interchange (Phase I/II)10,127 Hwy 7 & Louisiana Interchange (final design)16,481 Fire Station #1 113,187 Fire Station #2 105,072 Assessment of storm water basins 11,536 Hydrant flow testing 27,044 Traffic signal - Park Center Blvd 27,125 Reilly 180,902 2013 Local Street Rehab (contract 35-13)139,035 City Hall remodel - 1st floor 84,212 Granular Activated Carbon 22,081 Rehab EWT #3 (contract 48-13)141,108 France Avenue Sidewalk Improvements 23,530 Lift Station #2 (contract 18-13)27,384 Hwy 7 at Louisiana (contract 65-13)11,125,542 Hwy 7 at Louisiana construction support (contract 531,290 Bridge Program Admin & Load Ratings (contract 12,222 36th St Bridge (contract 87-13)19,076 37th St Bridge (contract 87-13)64,688 Louisiana Ave Bridge (contract 87-13)71,720 Total commitments $13,009,512 89 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 97 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 13 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, 2013, there were 12 revenue bonds issued. The aggregate principal amount payable as of December 31, 2013 is $445,944,428. Note 14 CHANGE IN ACCOUNTING PRINCIPLE AND PRIOR PERIOD ADJUSTMENT For the year ended December 31, 2013, the City implemented GASB Statements No. 61 and 65. GASB Statement No. 61, The Financial Reporting Entity: Omnibus – An Amendment of GASB No. 14 and No.34 modifies certain requirements for inclusion of component units in the financial reporting entity and also amends the criteria for reporting component units as if they were part of the primary government (i.e. blending). GASB Statement No. 65, Items Previously Reported as Assets and Liabilities resulted in accounts previously presented as liabilities being reclassified as deferred inflows of resources. In addition, GASB 65 results in the restatements of beginning net position to reflect the change in accounting for bond issuance costs. Prior to GASB 65, bond issuance costs were capitalized and amortized over the life of the bond. GASB 65 requires the expensing of issuance costs (excluding bond insurance) in the year of issuance. During 2012, the City recorded a prior period adjustment for $400,000 related to 2011 intergovernmental revenue recorded in the Park Improvement Fund. Both fund balance and net position increased as a result of this adjustment. In addition, during 2013 the City recorded a prior period adjustment for $240,232 related to 2012 unearned antenna lease revenue. Both fund balance and net position decreased as a result of this adjustment. 90 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 98 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 The restatement of net position due to the elimination of deferred charges and the 2011 intergovernmental revenue is summarized as follows: Total Governemntal Business-Type Statement of Activities Activities Activities Net position - January 1, as previously reported $161,460,566 $30,871,352 $192,331,918 Restatement of deferred charges (184,197) (69,012) (253,209) Intergovernmental revenue 400,000 - 400,000 Unearned antenna lease revenue - (240,232) (240,232) Net position - January 1, as restated $161,676,369 $30,562,108 $192,238,477 Governmental Water Sewer Storm Water Funds Utility Utility Utility Net position - January 1, as previously reported $63,114,780 $6,630,826 $7,617,429 $14,266,864 Restatement of deferred charges - (45,449) (1,809) (21,754) Intergovernmental revenue 400,000 - - - Unearned antenna lease revenue - (240,232) - - Net position - January 1, as restated $63,514,780 $6,345,145 $7,615,620 $14,245,110 December 31, 2012 December 31, 2012 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: Upcoming GASB Statements City Implementation Required By Statement No. 67 Financial Reporting for Pension Plans – An amendment of GASB Statement No. 25. 2014 Statement No. 68 Financial Reporting for Pensions – An amendment of GASB Statement No. 27. 2015 Statement No. 69 Government Combinations and Disposal of Government Operations. 2014 Statement No. 70 Financial Reporting for Nonexchange Financial Guarantees. 2014 Statement No. 71 Pension Translation for Contributions Made Subsequent to the Measurement Date – An amendment of GASB Statement No. 68. 2015 Statement No. 68 (2015) will require for the first time the City to record a liability for its proportionate share of the net pension liability of cost-sharing multi-employer pension plans (i.e., PERA). 91 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 99 - This page intentionally left blank - 92 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 100 REQUIRED SUPPLEMENTARY INFORMATION 93 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 101 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, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Budgeted Amounts Original Final Revenues: Property taxes $16,314,802 $20,657,724 $21,987,968 $1,330,244 $16,038,098 Licenses and permits: Business regulatory licenses 515,698 515,698 530,422 14,724 758,527 Non-business licenses and permits 1,965,905 1,965,905 2,538,668 572,763 2,482,846 Total licenses and permits 2,481,603 2,481,603 3,069,090 587,487 3,241,373 Intergovernmental: Federal 23,915 23,915 466,643 442,728 29,198 State shared taxes: Highway user tax 500,000 500,000 475,217 (24,783) 521,527 Market value homestead credit - - 59 59 1,073 Insurance premium tax 545,000 545,000 580,168 35,168 522,593 State of Minnesota: Other 69,169 94,169 349,929 255,760 136,830 PERA 45,205 45,205 45,205 - 45,205 Police training reimbursement 20,000 20,000 16,746 (3,254) 16,604 School district - 56,702 62,050 5,348 1,524 Other local governments - 12,000 32,581 20,581 724 Total intergovernmental 1,203,289 1,296,991 2,028,598 731,607 1,275,278 Charges for services: General government 676,926 676,926 673,588 (3,338) 705,707 Public safety 105,150 105,150 88,664 (16,486) 82,486 Public works - signals/lighting 637,221 - 50 50 311,970 Culture and red - 1,079,800 1,021,682 (58,118) - Rent of City property 87,550 1,038,731 997,696 (41,035) 100,000 Total charges for services 1,506,847 2,900,607 2,781,680 (118,927) 1,200,163 Fines and forfeits: Municipal court 300,000 300,000 302,095 2,095 300,165 Liquor violations 12,000 12,000 1,500 (10,500) 26,000 Property forfeits 8,000 8,000 7,357 (643) 15,166 Miscellaneous violations 150 150 930 780 25 Total fines and forfeits 320,150 320,150 311,882 (8,268) 341,356 Investment income 150,000 153,500 14,180 (139,320) 136,415 Miscellaneous 28,850 66,100 78,303 12,203 10,145 Total revenues 22,005,541 27,876,675 30,271,701 2,395,026 22,242,828 2013 Actual Amounts Variance with Final Budget - Positive (Negative) 2012 Actual Amounts 94 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 102 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, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Budgeted Amounts Expenditures: Original Final General government: Administration: Current: Personal services $395,737 $395,737 $394,189 $1,548 $450,411 Supplies 3,000 3,000 1,233 1,767 3,696 Other services and charges 387,851 387,851 404,950 (17,099) 434,574 Total administration 786,588 786,588 800,372 (13,784) 888,681 General services: Supplies - - 20,428 (20,428) 17,440 Other services and charges 180,000 180,000 311,340 (131,340) 67,833 Capital outlay - - - - - Total general services 180,000 180,000 331,768 (151,768) 85,273 Human resources: Current: Personal services 568,720 568,720 576,565 (7,845) 526,006 Supplies 2,000 2,000 2,117 (117) 1,404 Other services and charges 116,600 116,600 161,287 (44,687) 126,109 Total human resources 687,320 687,320 739,969 (52,649) 653,519 Communications, marketing and community outreach Current: Personal services 163,751 163,751 141,491 22,260 251,306 Materials and supplies 200 200 - 200 240 Other services and charges 127,735 127,735 88,251 39,484 78,740 Total communications, etc. 291,686 291,686 229,742 61,944 330,286 Technology and support services: Current: Personal services 882,659 882,659 820,231 62,428 530,863 Materials and supplies 30,000 30,000 25,024 4,976 37,401 Other services and charges 855,718 855,718 752,554 103,164 795,031 Total technology and support services 1,768,377 1,768,377 1,597,809 170,568 1,363,295 Accounting: Current: Personal services 467,166 467,166 462,903 4,263 459,969 Materials and supplies 3,000 3,000 2,021 979 3,120 Other services and charges 187,426 309,092 306,773 2,319 177,037 Total accounting 657,592 779,258 771,697 7,561 640,126 Assessing: Current: Personal services 532,910 532,910 532,226 684 508,538 Materials and supplies 1,200 1,200 891 309 504 Other services and charges 9,745 9,745 9,771 (26) 9,075 Total assessing 543,855 543,855 542,888 967 518,117 2013 Actual Amounts Variance with Final Budget - Positive (Negative) 2012 Actual Amounts 95 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 103 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, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Budgeted Amounts Expenditures: (continued) Original Final General government: (continued) Facilities maintenance: Current: Personal services $398,500 $398,500 $375,353 $23,147 $373,932 Materials and supplies 86,750 86,750 92,576 (5,826) 87,223 Other services and charges 589,670 589,670 590,200 (530) 511,328 Total facilities maintenance 1,074,920 1,074,920 1,058,129 16,791 972,483 Community development: Current: Personal services 1,081,067 1,081,067 1,082,306 (1,239) 1,040,665 Materials and supplies 1,700 1,700 716 984 498 Other services and charges 11,750 11,750 7,192 4,558 11,022 Total community development 1,094,517 1,094,517 1,090,214 4,303 1,052,185 Total general government 7,084,855 7,206,521 7,162,588 43,933 6,503,965 Public safety: Police: Current: Personal services 6,922,882 6,922,882 6,678,543 244,339 6,659,270 Materials and supplies 124,850 124,850 127,200 (2,350) 131,643 Other services and charges 395,905 395,905 398,043 (2,138) 314,387 Total police 7,443,637 7,443,637 7,203,786 239,851 7,105,300 Fire protection: Current: Personal services 2,989,427 2,989,427 2,891,395 98,032 2,868,280 Materials and supplies 76,900 76,900 99,116 (22,216) 76,577 Other services and charges 263,936 263,936 255,650 8,286 340,276 Capital outlay - - - - 6,518 Total fire protection 3,330,263 3,330,263 3,246,161 84,102 3,291,651 Inspection services: Current: Personal services 1,796,603 1,796,603 1,790,043 6,560 1,750,646 Materials and supplies 14,000 14,000 7,655 6,345 5,487 Other services and charges 117,843 117,843 134,323 (16,480) 113,487 Total inspection services 1,928,446 1,928,446 1,932,021 (3,575) 1,869,620 Total public safety 12,702,346 12,702,346 12,381,968 320,378 12,266,571 2013 Actual Amounts Variance with Final Budget - Positive (Negative) 2012 Actual Amounts 96 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 104 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, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Budgeted Amounts Expenditures: (continued) Original Final Operations and recreation: Public works administration: Current: Personal services $369,054 $369,054 $273,220 $95,834 $366,080 Materials and supplies 6,000 6,000 4,585 1,415 6,885 Other services and charges 18,000 18,000 10,391 7,609 5,885 Total public works administration 393,054 393,054 288,196 104,858 378,850 Public works operations: Current: Personal services 1,342,285 1,342,285 1,381,618 (39,333) 1,293,372 Materials and supplies 476,700 476,700 565,765 (89,065) 472,003 Other services and charges 882,385 882,385 773,257 109,128 756,093 Total public works operations 2,701,370 2,701,370 2,720,640 (19,270) 2,521,468 Culture and recreation: Current: Personal services - 3,682,247 3,697,433 (15,186) - Materials and supplies - 939,711 952,464 (12,753) - Other services and charges - 1,779,731 1,786,885 (7,154) - Total culture and recreation 0 6,401,689 6,436,782 (35,093) 0 Total operations and recreation 3,094,424 9,496,113 9,445,618 50,495 2,900,318 Engineering: Current: Personal services 870,187 232,966 193,296 39,670 851,201 Materials and supplies 11,400 11,400 5,886 5,514 3,946 Other services and charges 58,892 58,892 97,214 (38,322) 84,269 Total engineering 940,479 303,258 296,396 6,862 939,416 Total expenditures 23,822,104 29,708,238 29,286,570 421,668 22,610,270 Revenues over (under) expenditures (1,816,563) (1,831,563) 985,131 2,816,694 (367,442) Other financing sources (uses): Transfers in 1,816,563 1,831,563 2,886,719 1,055,156 2,066,136 Transfers out - - (60,000) (60,000) (1,160,000) Total other financing sources (uses) 1,816,563 1,831,563 2,826,719 995,156 906,136 Net change in fund balance $0 $0 3,811,850 $3,811,850 538,694 Fund balance - January 1 11,976,916 11,438,222 Fund balance - December 31 $15,788,766 $11,976,916 2013 Actual Amounts Variance with Final Budget - Positive (Negative) 2012 Actual Amounts 97 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 105 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - PARKS AND RECREATION FUND For The Year Ended December 31, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Budgeted Amounts Original Final Revenues: Property taxes $4,342,922 $ - $ - $ - $4,171,506 Licenses and permits - - - - 440 Intergovernmental - other 93,702 - - - 86,726 Charges for services 1,079,800 - - - 1,080,590 Rental income 951,181 - - - 968,310 Investment income 3,500 - - - 5,534 Miscellaneous 37,250 - - - 26,165 Total revenues 6,508,355 0 0 0 6,339,271 Expenditures: Operations and recreation: Current: Personal services 3,659,547 - - - 3,602,920 Supplies 937,841 - - - 1,066,570 Other services and charges 1,925,967 - - - 1,858,295 Total expenditures 6,523,355 0 0 0 6,527,785 Revenues over (under) expenditures (15,000) - - - (188,514) Other financing sources: Transfers in 15,000 - - - 250,752 Transfers out - - (1,081,497) (1,081,497) - Total other financing sources (uses) 15,000 0 (1,081,497) (1,081,497) 250,752 Net change in fund balance $0 $0 (1,081,497) ($1,081,497) 62,238 Fund balance - January 1 1,081,497 1,019,259 Fund balance - December 31 $0 $1,081,497 2013 Actual Amounts Variance with Final Budget - Positive (Negative) 2012 Actual Amounts 98 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 106 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF FUNDING PROGRESS - POST EMPLOYMENT BENEFIT PLAN For The Year Ended December 31, 2013 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% *Using the projected unit credit actuarial pay cost method. 99 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 107 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2013 Note A LEGAL COMPLIANCE – BUDGETS The General Fund and Parks and Recreation Fund budgets are 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. 100 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 108 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2013 In the Fall of 2012, the City conducted a physical condition assessment of the streets. 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, 2012, the City’s street and trail system was rated at an OCI index of 70 on the average with detail condition as follows: Condition % of Streets and Trails Excellent to Good 74.54% Fair 17.81% Poor to Substandard 7.65% 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 $1,874,596 on street maintenance for the year ending December 31, 2013. 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 $1,900,000. Year Maintenance Estimate Actual Expenditures OCI Rating 2012 $2,101,698 $2,157,727 70% 2013 $1,758,697 $1,874,596 70% 101 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 109 - This page intentionally left blank - 102 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 110 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 103 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 111 NONMAJOR GOVERNMENTAL FUNDS 104 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 112 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). 105 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 113 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 12 NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 Special Capital Revenue Project 2013 2012 Assets Cash and investments $1,749,234 $8,727,506 $10,476,740 $11,541,414 Accrued interest receivable 5,312 27,735 33,047 50,326 Due from other governments 22,483 - 22,483 651 Accounts receivable 162,669 406,176 568,845 493,000 Special assessments receivable: Delinquent 11,772 - 11,772 6,153 Deferred 194,879 1,356 196,235 180,658 Loans receivable - noncurrent 420,787 - 420,787 415,409 Total assets $2,567,136 $9,162,773 $11,729,909 $12,687,611 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $20,894 $206,683 $227,577 $123,043 Salaries payable 16,969 - 16,969 14,954 Due to other governments 152 2,827 2,979 559 Contracts payable - 66,203 66,203 84,624 Due to other funds 7,607 - 7,607 32,102 Unearned revenue - 200,000 200,000 - Total liabilities 45,622 475,713 521,335 255,282 Deferred inflows of resources: Unavailable revenue 220,038 1,356 221,394 197,176 Total deferred inflows of resources 220,038 1,356 221,394 197,176 Fund balance: Nonspendable 420,787 - 420,787 415,409 Restricted 630,933 3,545,540 4,176,473 5,104,867 Committed 467,682 - 467,682 459,160 Assigned 783,332 5,140,164 5,923,496 6,297,924 Unassigned (1,258) - (1,258) (42,207) Total fund balance 2,301,476 8,685,704 10,987,180 12,235,153 Total liabilities, deferred inflows of resources, and fund balance $2,567,136 $9,162,773 $11,729,909 $12,687,611 Nonmajor Totals Governmental Funds 106 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 114 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 13 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Special Capital Revenue Project 2013 2012 Revenues: Taxes: Property $ - $810,000 $810,000 $1,125,000 Franchise 642,142 1,569,427 2,211,569 1,954,557 Intergovernmental: Other 127,577 294,702 422,279 200,138 Charges for services 26,117 12,705 38,822 46,906 Special assessments 175,067 1,435 176,502 222,554 Interest on investments 4,218 31,410 35,628 137,013 Miscellaneous 2,529 323,478 326,007 414,613 Total revenues 977,650 3,043,157 4,020,807 4,100,781 Expenditures: Current: Public safety - 18,808 18,808 9,765 Operations and recreation - 637,923 637,923 532,325 Engineering - 1,874,600 1,874,600 2,031,212 Public information 408,683 - 408,683 470,280 Housing and maintenance 141,250 - 141,250 116,949 Social economic development 217,023 - 217,023 196,438 Capital outlay: Public safety - - - 46,909 Operations and recreation - 930,249 930,249 636,800 Engineering - - - 127,284 Public information 18,163 - 18,163 6,690 Total expenditures 785,119 3,461,580 4,246,699 4,174,652 Revenues over (under) expenditures 192,531 (418,423) (225,892)(73,871) Other financing sources (uses): Transfers in 60,000 - 60,000 500,000 Transfers out (184,506) (897,575) (1,082,081) (705,342) Total other financing sources (uses)(124,506) (897,575) (1,022,081) (205,342) Net change in fund balance 68,025 (1,315,998) (1,247,973) (279,213) Fund balance - January 1, as previously stated 2,233,451 10,001,702 12,235,153 12,114,366 Prior period adjustment - - - 400,000 Fund balance - January 1, as restated 2,233,451 10,001,702 12,235,153 12,514,366 Fund balance - December 31 $2,301,476 $8,685,704 $10,987,180 $12,235,153 Totals Nonmajor Governmental Funds 107 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 115 - This page intentionally left blank - 108 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 116 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. 109 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 117 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 14 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 2013 2012 Assets Cash and investments $1,420,083 $ - $329,151 $1,749,234 $1,739,373 Accrued interest receivable 4,422 - 890 5,312 7,490 Due from other governments - 22,483 - 22,483 651 Accounts receivable 162,669 - - 162,669 157,517 Special assessments receivable: Delinquent - - 11,772 11,772 6,153 Deferred - - 194,879 194,879 178,021 Loans receivable - noncurrent - 420,787 - 420,787 415,409 Total assets $1,587,174 $443,270 $536,692 $2,567,136 $2,504,614 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $3,900 $ - $16,994 $20,894 $29,120 Salaries payable 16,969 - - 16,969 14,954 Due to other governments 152 - - 152 448 Due to other funds - 7,607 - 7,607 32,102 Total liabilities 21,021 7,607 16,994 45,622 76,624 Deferred inflows of resources: Unavailable revenue - 16,134 203,904 220,038 194,539 Total deferred inflows of resources 0 16,134 203,904 220,038 194,539 Fund balance: Nonspendable - 420,787 - 420,787 415,409 Restricted 630,933 - - 630,933 653,205 Committed 467,682 - - 467,682 459,160 Assigned 467,538 - 315,794 783,332 747,884 Unassigned - (1,258) - (1,258) (42,207) Total fund balance 1,566,153 419,529 315,794 2,301,476 2,233,451 Total liabilities, deferred inflows of resources, and fund balance $1,587,174 $443,270 $536,692 $2,567,136 $2,504,614 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts 110 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 118 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 15 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 2013 2012 Revenues: Franchise taxes $642,142 $ - $ - $642,142 $618,375 Intergovernmental - other - 127,577 - 127,577 103,566 Charges for services - - 26,117 26,117 36,543 Special assessments - - 175,067 175,067 221,081 Interest on investments 3,304 - 914 4,218 19,028 Miscellaneous 1,053 - 1,476 2,529 4,890 Total revenues 646,499 127,577 203,574 977,650 1,003,483 Expenditures: Current: Public information: Personal services 390,152 - - 390,152 385,912 Supplies 10,580 - - 10,580 19,199 Other services and charges 7,951 - - 7,951 65,169 Housing maintenance: Personal services - 21,173 - 21,173 20,883 Other services and charges - 120,077 - 120,077 96,066 Social and economic development: Supplies - - 3,410 3,410 33,200 Other services and charges - - 213,613 213,613 163,238 Capital outlay: Public information 18,163 - - 18,163 6,690 Total expenditures 426,846 141,250 217,023 785,119 790,357 Revenues over (under) expenditures 219,653 (13,673) (13,449) 192,531 213,126 Other financing sources (uses): Transfers in - 60,000 - 60,000 - Transfers out (184,506) - - (184,506) (209,506) Net change in fund balance 35,147 46,327 (13,449) 68,025 3,620 Fund balance - January 1 1,531,006 373,202 329,243 2,233,451 2,229,831 Fund balance - December 31 $1,566,153 $419,529 $315,794 $2,301,476 $2,233,451 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts 111 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 119 - This page intentionally left blank - 112 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 120 NONMAJOR CAPITAL PROJECT FUNDS 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. 113 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 121 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 16 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions 2013 2012 Assets Cash and investments $3,812,588 $1,223,850 $3,691,068 $8,727,506 $9,802,041 Accrued interest receivable 10,759 3,936 13,040 27,735 42,836 Accounts receivable - 406,176 - 406,176 335,483 Special assessments - delinquent - - - - - Special assessments - deferred - 1,356 - 1,356 2,637 Total assets $3,823,347 $1,635,318 $3,704,108 $9,162,773 $10,182,997 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $48,063 $52 $158,568 $206,683 $93,923 Due to other governments 2,827 - - 2,827 111 Contracts payable - 66,203 - 66,203 84,624 Unearned revenue 200,000 - - 200,000 - Total liabilities 250,890 66,255 158,568 475,713 178,658 Deferred inflows of resources: Unavailable revenue - 1,356 - 1,356 2,637 Total deferred inflows of resources 0 1,356 0 1,356 2,637 Fund balance: Restricted - - 3,545,540 3,545,540 4,451,662 Assigned 3,572,457 1,567,707 - 5,140,164 5,550,040 Total fund balance 3,572,457 1,567,707 3,545,540 8,685,704 10,001,702 Total liabilities, deferred inflows of resources, and fund balance $3,823,347 $1,635,318 $3,704,108 $9,162,773 $10,182,997 Totals Nonmajor Capital Project Funds 114 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 122 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 17 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions Revenues:2013 2012 Taxes: Property taxes $810,000 $ - $ - $810,000 $1,125,000 Franchise - 1,569,427 - 1,569,427 1,336,182 Intergovernmental: Other 294,702 - - 294,702 96,572 Charges for services 9,000 3,705 - 12,705 10,363 Special assessments - 1,435 - 1,435 1,473 Investment income 11,276 9,873 10,261 31,410 117,985 Miscellaneous 323,475 3 - 323,478 409,723 Total revenues 1,448,453 1,584,443 10,261 3,043,157 3,097,298 Expenditures: Current: Public safety - - 18,808 18,808 9,765 Engineering - 1,874,600 - 1,874,600 2,031,212 Operations and recreation 637,923 - - 637,923 532,325 Capital outlay: Public safety - - - - 46,909 Engineering - - - - 127,284 Operations and recreation 930,249 - - 930,249 636,800 Total expenditures 1,568,172 1,874,600 18,808 3,461,580 3,384,295 Revenues over (under) expenditures (119,719) (290,157) (8,547) (418,423) (286,997) Other financing sources (uses): Transfers in - - - - 500,000 Transfers out - - (897,575) (897,575) (495,836) Total other financing sources (uses) 0 0 (897,575) (897,575) 4,164 Net change in fund balance (119,719) (290,157) (906,122) (1,315,998) (282,833) Fund balance - January 1, as previously stated 3,692,176 1,857,864 4,451,662 10,001,702 9,884,535 Prior period adjustment - - - - 400,000 Fund balance - January 1, as restated 3,692,176 1,857,864 4,451,662 10,001,702 10,284,535 Fund balance - December 31 $3,572,457 $1,567,707 $3,545,540 $8,685,704 $10,001,702 Totals Nonmajor Capital Project Funds 115 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 123 - This page intentionally left blank - 116 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 124 MAJOR DEBT SERVICE FUNDS 3400 - 1999 General Obligation Bond 3450 - 2003 General Obligation Bond 3460 – 2010A General Obligation Bond 3465 – 2012A General Obligation HIA Bonds 3470 – 2010B General Obligation Bond 3480 – 2010D General Obligation Fire Station Bond 3600 - 2000 General Obligaiton Bond Reserve 3610 - 2000 General Obligation Bond 3615 – 2010C General Obligation Bond 3620 – 2010C General Obligation Bond Reserve Fund 3850 - 2004 General Obligation Tax Increment Refunding 3870 - 2005A General Obligation Bond 3875 – Hoigaard’s 2010 A & B TIF Notes 3890 - 2008B General Obligation Tax Increment Bond 117 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 125 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR DEBT SERVICE FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 3400 1999 General Obligation Bond 3450 2003 General Obligation Bond 3460 2010A General Obligation Bond 3465 2012A General Obligation HIA Bonds 3470 2010B General Obligation Bond Assets Cash and investments $58,785 $574,877 $ - $ - $78,317 Accrued interest receivable 185 1,805 - - - Due from other governments - - - - - Loans receivable - current - - - - - Loans receivable - noncurrent - - - - - Total assets $58,970 $576,682 $0 $0 $78,317 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $ - Due to other funds - - - - - Deposits payable - - - - - Unearned revenue - - - - - Total liabilities 0 0 0 0 0 Deferred inflows of resources: Unavailable revenue - - - - - Total deferred inflows of resources 0 0 0 0 0 Fund balance: Restricted 58,970 576,682 - - 78,317 Unassigned - - - - - Total fund balance 58,970 576,682 0 0 78,317 Total liabilities, deferred inflows of resources, and fund balance $58,970 $576,682 $0 $0 $78,317 118 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 126 Statement 18 3480 2010D General Obligation Fire Station Bond 3600 2000 General Obligation Bond Reserve 3615 2010C General Obligation Bond 3620 2010C General Obligation Bond Reserve 3850 2004 General Obligation Tax Increment Refunding 3870 2005A General Obligation Bond 2013 2012 $785,582 $121,105 $67,862 $124,794 $ - $646,684 $2,458,006 $2,413,012 1,502 - - - - 1,515 5,007 6,908 87,876 - - - - - 87,876 95,842 - - 35,000 - - - 35,000 35,000 - - 1,675,000 - - - 1,675,000 1,710,000 $874,960 $121,105 $1,777,862 $124,794 $0 $648,199 $4,260,889 $4,260,762 $ - $ - $ - $ - $1,956 $ - $1,956 $ - - - - - - - - 39,788 - - - 124,644 - - 124,644 80,652 14,646 - - - - - 14,646 15,974 14,646 0 0 124,644 1,956 0 141,246 136,414 - - 1,710,000 - - - 1,710,000 1,745,000 0 0 1,710,000 0 0 0 1,710,000 1,745,000 860,314 121,105 67,862 150 (1,956) 648,199 2,409,643 2,419,136 - - - - - - - (39,788) 860,314 121,105 67,862 150 (1,956) 648,199 2,409,643 2,379,348 $874,960 $121,105 $1,777,862 $124,794 $0 $648,199 $4,260,889 $4,260,762 Totals Debt Service Funds 119 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 127 - This page intentionally left blank - 120 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 128 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 19 EXPENDITURES AND CHANGES IN FUND BALANCE Page 1 of 2 MAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 3400 1999 General Obligation Bond 3450 2003 General Obligation Bond 3460 2010A General Obligation Bond 3465 2012A General Obligation HIA Bonds Revenues: Property taxes $ - $ - $ - $ - Intergovernmental - - - - Interest on investments 144 1,409 - - Miscellaneous - other - - - - Total revenues 144 1,409 0 0 Expenditures: Social economic development: Developer assistance - - - - Debt service: Principal - - 110,000 - Interest and other 20 197 136,863 27,404 Fiscal agent fees - - 450 450 Bond issuance costs - - - - Total expenditures 20 197 247,313 27,854 Revenues over (under) expenditures 124 1,212 (247,313) (27,854) Other financing sources (uses): Transfers in - - 160,553 67,642 Transfers out - - - - Total other financing sources (uses)0 0 160,553 67,642 Net change in fund balance 124 1,212 (86,760)39,788 Fund balance - January 1 58,846 575,470 86,760 (39,788) Fund balance (deficit) - December 31 $58,970 $576,682 $0 $0 121 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 129 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, 2013 With Comparative Totals For The Year Ended December 31, 2012 3470 2010B General Obligation Bond 3480 2010D General Obligation Fire Station Bond 3600 2000 General Obligation Bond Reserve 3615 2010C General Obligation Bond Revenues: Property taxes $514,080 $925,805 $ - $ - Intergovernmental - 175,659 - - Interest on investments - - 58 26 Miscellaneous - other - - - 102,030 Total revenues 514,080 1,101,464 58 102,056 Expenditures: Social economic development: Developer assistance - - - - Debt service: Principal 465,000 525,000 - 35,000 Interest and other 14,560 546,890 - 83,730 Fiscal agent fees 139 450 - 450 Bond issuance costs - - - - Total expenditures 479,699 1,072,340 0 119,180 Revenues over (under) expenditures 34,381 29,124 58 (17,124) Other financing sources (uses): Transfers in - - - 58 Transfers out - - (58) - Total other financing sources (uses)0 0 (58)58 Net change in fund balance 34,381 29,124 0 (17,066) Fund balance - January 1 43,936 831,190 121,105 84,928 Fund balance (deficit) - December 31 $78,317 $860,314 $121,105 $67,862 122 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 130 Statement 19 Page 2 of 2 3620 2010C General Obligation Bond Reserve 3850 2004 General Obligation Tax Increment Refunding 3870 2005A General Obligation Bond 3875 Hoigaard's 2010 A & B TIF Notes 3890 2008B General Obligation Tax Increment Bond 2013 2012 $ - $ - $497,200 $ - $ - $1,937,085 $1,929,629 - - - - - 175,659 191,684 48 - - - - 1,685 12,334 - - - - - 102,030 119,563 48 0 497,200 0 0 2,216,459 2,253,210 - - - 419,830 - 419,830 494,871 - 1,415,000 410,000 - 315,000 3,275,000 1,285,000 - 52,240 55,800 - 209,481 1,127,185 1,141,665 - 1,956 - - - 3,895 1,040 - - - - - - 39,788 0 1,469,196 465,800 419,830 524,481 4,825,910 2,962,364 48 (1,469,196) 31,400 (419,830) (524,481) (2,609,451) (709,154) - 1,471,263 - 419,830 524,481 2,643,827 1,323,754 - (4,023) - - - (4,081)(163) 0 1,467,240 0 419,830 524,481 2,639,746 1,323,591 48 (1,956) 31,400 0 0 30,295 614,437 102 - 616,799 - - 2,379,348 1,764,911 $150 ($1,956) $648,199 $0 $0 $2,409,643 $2,379,348 Totals Debt Service Funds 123 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 131 - This page intentionally left blank - 124 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 132 MAJOR REDEVELOPMENT DISTRICT FUNDS 4775 – Eliot Park TIFF 4780 – Duke West End TIF 4785 – Ellipse TIF DIstrict 4798 – HRA Levy 4855 – Trunk Highway 7 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 125 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 133 - This page intentionally left blank - 126 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 134 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 20 MAJOR REDEVELOPMENT DISTRICT FUNDS Page 1 of 2 December 31, 2013 With Comparative Totals For December 31, 2012 4780 Duke West End TIF 4775 Eliot Park TIF 4785 Ellipse TIF District 4798 HRA Levy 4855 Trunk Highway 7 4865 HSTI Assets Cash and investments $482,886 $ - $106,499 $2,114,359 $ - $204,807 Accrued interest receivable 1,752 - 108 13,149 - 3,969 Taxes receivable - unremitted - - - 6,558 - - Taxes receivable - delinquent - - - 5,358 - - Loans receivable - noncurrent - - - - - - Total assets $484,638 $0 $106,607 $2,139,424 $0 $208,776 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $200 $ - $200 $ - $ - $ - Due to other governments 1,890 - 861 - - 2,602 Due to other funds - - - - - - Interfund loan payable 457,939 746 185,429 - - - Total liabilities 460,029 746 186,490 0 0 2,602 Deferred inflows of resources: Unavailable revenue - - - 5,358 - - Total deferred inflows of resources 0 0 0 5,358 0 0 Fund balance (deficit): Restricted 24,609 - - 2,134,066 - 206,174 Unassigned - (746) (79,883) - - - Total fund balance (deficit) 24,609 (746) (79,883) 2,134,066 0 206,174 Total liabilities, deferred inflows of resources, and fund balance $484,638 $0 $106,607 $2,139,424 $0 $208,776 127 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 135 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR REDEVELOPMENT DISTRICT FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 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 Assets Cash and investments $500,130 $196,371 $479,366 $219,275 $571,223 $ - Accrued interest receivable 1,668 1,547 1,115 360 114 - Taxes receivable - unremitted 1,907 - 3,787 - 22,587 - Taxes receivable - delinquent - - - - - - Loans receivable - noncurrent - 680,872 - - - - Total assets $503,705 $878,790 $484,268 $219,635 $593,924 $0 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $850 $ - $200 $200 $2,550 $200 Due to other governments 1,536 678 1,430 1,024 5,765 572 Due to other funds - - - - - - Interfund loan payable - - - - - - Total liabilities 2,386 678 1,630 1,224 8,315 772 Deferred inflows of resources: Unavailable revenue - 37,866 - - - - Total deferred inflows of resources 0 37,866 0 0 0 0 Fund balance (deficit): Restricted 501,319 840,246 482,638 218,411 585,609 - Unassigned - - - - - (772) Total fund balance (deficit) 501,319 840,246 482,638 218,411 585,609 (772) Total liabilities, deferred inflows of resources, and fund balance $503,705 $878,790 $484,268 $219,635 $593,924 $0 128 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 136 Statement 20 Page 2 of 2 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons 4980 Highway 7 Business Center 4985 Hard Coat TIF District 2013 2012 $413,305 $82,616 $92,501 $17,750 $ - $5,481,088 $9,990,938 2,306 132 127 - - 26,347 39,975 11,647 - - - - 46,486 21,158 - - - - - 5,358 6,578 - - - - - 680,872 668,250 $427,258 $82,748 $92,628 $17,750 $0 $6,240,151 $10,726,899 $ - $200 $400 $200 $ - $5,200 $8,529 4,019 705 1,446 748 - 23,276 23,546 - - - - - - - 3,196,484 - - - 33,741 3,874,339 4,206,657 3,200,503 905 1,846 948 33,741 3,902,815 4,238,732 - - - - - 43,224 31,822 0 0 0 0 0 43,224 31,822 - 81,843 90,782 16,802 - 5,182,499 9,712,202 (2,773,245) - - - (33,741) (2,888,387) (3,255,857) (2,773,245) 81,843 90,782 16,802 (33,741) 2,294,112 6,456,345 $427,258 $82,748 $92,628 $17,750 $0 $6,240,151 $10,726,899 Totals Redevelopment District Funds 129 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 137 - This page intentionally left blank - 130 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 138 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 21 EXPENDITURES AND CHANGES IN FUND BALANCE Page 1 of 2 MAJOR REDEVELOPMENT DISTRICT FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 4780 Duke West End TIF 4775 Eliot Park TIF 4785 Ellipse TIF District 4798 HRA Levy 4855 Trunk Highway 7 4865 HSTI Revenues: Property taxes $ - $ - $ - $899,391 $ - $ - Tax increments 825,356 - 216,221 - - 1,247,428 Intergovernmental - - - 2 - - Interest on investments 828 - - 14,029 900 6,204 Total revenues 826,184 0 216,221 913,422 900 1,253,632 Expenditures: Current: Social and economic development 333,933 746 212,128 4,708 208 2,226,047 Revenues over (under) expenditures 492,251 (746) 4,093 908,714 692 (972,415) Other financing sources (uses): Transfers in - - - - - - Transfers out (524,481) - - (3,552,017) (703,425) - Total other financing sources (uses) (524,481) 0 0 (3,552,017) (703,425) 0 Net change in fund balance (32,230) (746) 4,093 (2,643,303) (702,733) (972,415) Fund balance - January 1 56,839 - (83,976) 4,777,369 702,733 1,178,589 Fund balance (deficit) - December 31 $24,609 ($746) ($79,883) $2,134,066 $0 $206,174 131 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 139 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, 2013 With Comparative Totals For The Year Ended December 31, 2012 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 Revenues: Property taxes $ - $ - $ - $ - $ - $ - Tax increments 438,908 108,248 386,463 314,823 1,701,861 44,361 Intergovernmental - - - - - - Interest on investments 1,266 3,434 425 - - - Total revenues 440,174 111,682 386,888 314,823 1,701,861 44,361 Expenditures: Current: Social and economic development 386,272 3,915 344,757 279,875 1,624,918 44,481 Revenues over (under) expenditures 53,902 107,767 42,131 34,948 76,943 (120) Other financing sources (uses): Transfers in - - - - - - Transfers out - (500,000) - - - - Total other financing sources (uses) 0 (500,000)0000 Net change in fund balance 53,902 (392,233) 42,131 34,948 76,943 (120) Fund balance - January 1 447,417 1,232,479 440,507 183,463 508,666 (652) Fund balance (deficit) - December 31 $501,319 $840,246 $482,638 $218,411 $585,609 ($772) 132 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 140 Statement 21 Page 2 of 2 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons 4980 Highway 7 Business Center 4985 Hard Coat TIF District 2013 2012 $ - $ - $ - $ - $ - $899,391 $971,420 937,430 122,333 156,194 148,103 - 6,647,729 6,446,389 - - - - - 2 144 441 - - - - 27,527 81,864 937,871 122,333 156,194 148,103 0 7,574,649 7,499,817 149,206 120,678 154,886 145,779 4,592 6,037,129 4,898,691 788,665 1,655 1,308 2,324 (4,592) 1,537,520 2,601,126 - - - - - - 500,000 (419,830) - - - - (5,699,753) (2,442,352) (419,830)0000(5,699,753) (1,942,352) 368,835 1,655 1,308 2,324 (4,592) (4,162,233) 658,774 (3,142,080) 80,188 89,474 14,478 (29,149) 6,456,345 5,797,571 ($2,773,245) $81,843 $90,782 $16,802 ($33,741) $2,294,112 $6,456,345 Totals Redevelopment District Funds 133 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 141 - This page intentionally left blank - 134 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 142 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, equipment replacement and capital replacement. 135 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 143 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2013 With Comparative Amounts For December 31, 2012 2013 2012 Assets: Current assets: Cash and investments $738,967 $1,293,492 Accrued interest receivable 4,318 8,257 Due from other governments - - Accounts receivable - - Prepaid items 8,707 - Deposits receivable 31,000 31,000 Total current assets 782,992 1,332,749 Noncurrent assets: Capital assets, at cost: Land - - Building and structures - - Infrastructure - - Machinery, furniture and equipment - - Fleet - - Construction in progress - - Total capital assets, at cost 0 0 Less: accumulated depreciation - - Net capital assets 00 Total assets 782,992 1,332,749 Liabilities: Current liabilities: Accounts payable 19,027 71,286 Salaries payable 5,225 1,944 Accrued flex spending 25,490 26,119 Due to other governments 13,347 17,090 Contracts payable - - Due to other funds - - Compensated absences payable 2,489,865 2,508,596 Total current liabilities 2,552,954 2,625,035 Noncurrent liabilities: Compensated absences payable 1,067,084 1,075,113 Other postemployment benefits payable 1,833,419 1,513,086 Total noncurrent liabilities 2,900,503 2,588,199 Total liabilities 5,453,457 5,213,234 Net position: Net investment in capital assets - - Unrestricted (4,670,465)(3,880,485) Total net position ($4,670,465)($3,880,485) 6100 Employee Administrative 136 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 144 Statement 22 2013 2012 2013 2012 2013 2012 $718,470 $827,932 $ - $1,703,724 $1,457,437 $3,825,148 2,053 2,653 - 6,506 6,371 17,416 - - - - - - - 200 - - - 200 77,789 105,477 29,670 29,670 116,166 135,147 - - - - 31,000 31,000 798,312 936,262 29,670 1,739,900 1,610,974 4,008,911 - - 818,094 818,094 818,094 818,094 - - 134,520 - 134,520 - - - 9,461,214 9,461,214 9,461,214 9,461,214 - - 6,607,079 5,993,861 6,607,079 5,993,861 - - 7,126,319 6,937,989 7,126,319 6,937,989 - - 852,757 191,922 852,757 191,922 0 0 24,999,983 23,403,080 24,999,983 23,403,080 - - (7,696,111) (7,252,388) (7,696,111) (7,252,388) 0 0 17,303,872 16,150,692 17,303,872 16,150,692 798,312 936,262 17,333,542 17,890,592 18,914,846 20,159,603 638 14,626 90,087 34,786 109,752 120,698 - - - - 5,225 1,944 - - - - 25,490 26,119 - - 2,324 14 15,671 17,104 - 24,409 159,998 23,183 159,998 47,592 - - 943,989 - 943,989 - - - - - 2,489,865 2,508,596 638 39,035 1,196,398 57,983 3,749,990 2,722,053 - - - - 1,067,084 1,075,113 - - - - 1,833,419 1,513,086 0 0 0 0 2,900,503 2,588,199 638 39,035 1,196,398 57,983 6,650,493 5,310,252 - - 17,303,872 16,150,692 17,303,872 16,150,692 797,674 897,227 (1,166,728) 1,681,917 (5,039,519) (1,301,341) $797,674 $897,227 $16,137,144 $17,832,609 $12,264,353 $14,849,351 Totals6200 Uninsured Loss 6400 Capital Replacement 137 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 145 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For The Year Ended December 31, 2013 With Comparative Amounts For The Year Ended December 31, 2012 2013 2012 Operating revenues: Charges for services $ - $ - Other 295,372 205,429 Total operating revenues 295,372 205,429 Operating expenses: Personal services 1,166,093 797,232 Supplies - - Professional services 21,375 55,074 Insurance - - Depreciation - - Other 124,157 69,895 Total operating expenses 1,311,625 922,201 Operating income (loss)(1,016,253)(716,772) Nonoperating revenues (expenses): Investment income 6,620 26,925 Property taxes 200,000 100,024 Intergovernmental revenue 19,653 - Net loss on disposal of assets - - Total nonoperating revenues (expenses)226,273 126,949 Income (loss) before transfers (789,980)(589,823) Transfers in - 35,000 Transfers out - - Total transfers 0 35,000 Change in net position (789,980)(554,823) Net position - January 1 (3,880,485)(3,325,662) Net position - December 31 ($4,670,465) ($3,880,485) 6100 Employee Administrative 138 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 146 Statement 23 2013 2012 2013 2012 2013 2012 $ - $ - $781,078 $760,277 $781,078 $760,277 234,994 371,400 73,234 25,379 603,600 602,208 234,994 371,400 854,312 785,656 1,384,678 1,362,485 21,348 20,899 - - 1,187,441 818,131 - - 449,594 393,169 449,594 393,169 - - 2,217,474 41,604 2,238,849 96,678 208,568 473,976 - - 208,568 473,976 - - 1,347,225 1,295,445 1,347,225 1,295,445 1,152 52,822 663,387 293,621 788,696 416,338 231,068 547,697 4,677,680 2,023,839 6,220,373 3,493,737 3,926 (176,297) (3,823,368) (1,238,183) (4,835,695) (2,131,252) 2,692 6,020 6,281 8,583 15,593 41,528 - - 1,108,132 438,300 1,308,132 538,324 - - 17,500 - 37,153 - - - 69,237 60,416 69,237 60,416 2,692 6,020 1,201,150 507,299 1,430,115 640,268 6,618 (170,277) (2,622,218)(730,884) (3,405,580) (1,490,984) - 400,000 926,753 409,724 926,753 844,724 (106,171) - - - (106,171) - (106,171)400,000 926,753 409,724 820,582 844,724 (99,553)229,723 (1,695,465)(321,160) (2,584,998)(646,260) 897,227 667,504 17,832,609 18,153,769 14,849,351 15,495,611 $797,674 $897,227 $16,137,144 $17,832,609 $12,264,353 $14,849,351 Totals6200 Uninsured Loss 6400 Capital Replacement 139 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 147 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2013 With Comparative Amounts For The Year Ended December 31, 2012 2013 2012 Cash flows from operating activities: Receipts from interfund services provided $ - $14,184 Other receipts 295,372 205,429 Payments to suppliers (210,241)10,214 Payments to employees (869,868)(501,673) Net cash flows provided by (used in) operating activities (784,737)(271,846) Cash flows from noncapital financing activities: Transfers in - 35,000 Transfers out - - Intergovernmental receipts 100,024 Net cash flows provided by (used in) noncapital financing activities 0 135,024 Cash flows from capital and related financing activities: Acquisition and construction of capital assets - - Proceeds from sale of assets - - Net cash flows provided by (used in) capital and related financing activities 0 0 Cash flows from investing activities: Investment income 10,559 24,925 Net increase (decrease) in cash and cash equivalents (774,178)(111,897) Cash and cash equivalents - January 1 1,293,492 1,405,389 Cash and cash equivalents - December 31 $519,314 $1,293,492 6100 Employee Administrative 140 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 148 Statement 24 Page 1 of 2 2013 2012 2013 2012 2013 2012 $200 $1,200 $781,078 $838,487 $781,278 $853,871 234,994 371,400 73,234 25,379 603,600 602,208 (220,429) (495,877)(3,136,029) (1,085,592)(3,566,699) (1,571,255) (21,348) (20,899) - - (891,216) (522,572) (6,583) (144,176)(2,281,717) (221,726)(3,073,037) (637,748) - 400,000 926,753 409,724 926,753 844,724 (106,171) - - - (106,171) - - - 1,125,632 438,300 1,125,632 538,324 (106,171) 400,000 2,052,385 848,024 1,946,214 1,383,048 - - (1,725,250) (1,725,250)(1,725,250) (1,725,250) - - 128,943 - 128,943 0 0 (1,725,250) (1,596,307)(1,725,250) (1,596,307) 3,292 5,810 12,787 12,941 26,638 43,676 (109,462) 261,634 (1,941,795) (957,068)(2,825,435) (807,331) 827,932 566,298 1,703,724 2,660,792 3,825,148 4,632,479 $718,470 $827,932 ($238,071) $1,703,724 $999,713 $3,825,148 Totals6200 Uninsured Loss 6400 Capital Replacement 141 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 149 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2013 With Comparative Amounts For The Year Ended December 31, 2012 2013 2012 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)($1,016,253)($716,772) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation - - Changes in assets and liabilities: Decrease (increase) in: Accounts receivable - 14,184 Prepaid items (8,707)79,770 Increase (decrease) in: Accounts payable (56,002)55,413 Contracts payable - - Accrued salaries payable 3,281 1,508 Accrued flex spending (629)(3,542) Compensated absences payable (26,760)39,691 Other postemployment benefits 320,333 257,902 Total adjustments 231,516 444,926 Net cash provided by (used in) operating activities ($784,737)($271,846) Supplemental schedule of noncash capital and related financing activities Capital assets purchased on account $ - $ - Disposal of capital assets $ - $ - 6100 Employee Administrative 142 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 150 Statement 24 Page 2 of 2 2013 2012 2013 2012 2013 2012 $3,926 ($176,297)($3,823,368) ($1,238,183)($4,835,695) ($2,131,252) - - 1,347,225 1,295,445 1,347,225 1,295,445 200 1,200 - 78,210 200 93,594 27,688 (3,840) - (17,007)18,981 58,923 (13,988)10,352 57,611 (93,111)(12,379) (27,346) (24,409)24,409 136,815 (247,080)112,406 (222,671) - - - - 3,281 1,508 - - - - (629)(3,542) - - - - (26,760)39,691 - - - - 320,333 257,902 (10,509)32,121 1,541,651 1,016,457 1,762,658 1,493,504 ($6,583) ($144,176)($2,281,717) ($221,726)($3,073,037) ($637,748) $ - $ - $ - $ - $ - $ - $ - $ - $ - $939,625 $ - $939,625 6200 Uninsured Loss 6400 Capital Replacement Totals 143 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 151 GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund. 144 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 152 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET Statement 25 GENERAL FUND December 31, 2013 With Comparative Totals For December 31, 2012 2013 2012 Assets Cash and investments $17,261,132 $14,118,162 Accrued interest receivable 39,656 56,774 Due from other governments 537,954 109,516 Accounts receivable 204,824 14,587 Taxes receivable - unremitted 1,148,350 96,966 Taxes receivable - delinquent 160,983 163,481 Prepaid items 52,248 56,731 Inventory 204,003 13,719 Total assets $19,609,150 $14,629,936 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $1,024,758 $299,061 Salaries payable 1,091,445 868,048 Due to other governments 53,311 18,196 Contracts payable 24,740 15,664 Due to other funds - - Deposits payable 1,003,101 804,928 Unearned revenue 460,446 483,641 Total liabilities 3,657,801 2,489,538 Deferred inflows of resources: Unavailable revenue 162,583 163,482 Total deferred inflows of resources 162,583 163,482 Fund balance: Nonspendable 256,251 70,450 Restricted 498,922 458,448 Assigned 691,171 690,242 Unassigned 14,342,422 10,757,776 Total fund balance 15,788,766 11,976,916 Total liabilities, deferred inflows of resources, and fund balance $19,609,150 $14,629,936 145 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 153 CITY OF ST. LOUIS PARK, MINNESOTA SUMMARY FINANCIAL REPORT Statement 26 SCHEDULE OF REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS For The Year Ended December 31, 2013 2013 2012 Percent Increase (Decrease) Revenues: Property taxes $25,658,762 $24,259,861 5.8% Tax increments 6,647,729 6,446,389 3.1% Franchise taxes 2,211,569 1,954,557 13.1% License and permits 3,069,090 3,241,813 (5.3%) Intergovernmental 13,887,247 2,983,191 365.5% Charges for services 3,052,789 3,547,900 (14.0%) Fines and forfeits 311,882 341,356 (8.6%) Special assessments 1,505,568 2,233,715 (32.6%) Interest on investments 123,306 622,450 (80.2%) Miscellaneous 2,216,820 2,188,262 1.3% Total revenues 58,684,762 47,819,494 22.7% Per capita 1,266 1,051 Expenditures: Current: General government 7,162,588 6,503,965 10.1% Public safety 12,435,341 12,571,356 (1.1%) Operations and recreation 10,083,541 13,955,142 (27.7%) Engineering 15,998,842 939,416 Public information 408,683 470,280 (13.1%) Housing and rehabilitation 1,715,540 3,881,500 (55.8%) Housing maintenance 141,250 116,949 20.8% Social economic development 8,910,821 7,681,176 16.0% Capital outlay: General government - - 0.0% Public safety 163,766 2,847,957 (94.2%) Operations and recreation 930,249 636,800 46.1% Engineering 798,517 319,839 Public information 18,163 6,690 0.0% Housing and rehabilitation - 71,242 0.0% Social and economic development 179,103 48,000 273.1% Debt service: Principal 3,275,000 1,285,000 154.9% Interest 1,298,016 1,235,118 5.1% Bond issuance costs - 45,395 0.0% Fiscal agent fees 3,895 1,040 0.0% Total expenditures $63,523,315 $52,616,865 20.7% Per capita 1,370 1,156 Total bonds payable 21,730,000 21,730,000 0.0% Per capita 469 478 General Fund balance 15,788,766 11,976,916 31.8% Per capita 341 263 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 Brian Swanson, Controller at (952) 924-2500. Total Governmental Funds 146 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 154 III. STATISTICAL SECTION (UNAUDITED) 147 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 155 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2004 2005 2006 2007 Governmental activities Net investment in capital assets $38,042,067 $47,555,983 $56,843,474 $74,883,912 Restricted 3,928,407 10,841,736 9,340,767 13,098,282 Unrestricted 65,641,642 59,482,664 60,462,334 46,155,656 Total governmental activities net position $107,612,116 $117,880,383 $126,646,575 $134,137,850 Business-type activities Net investment in capital assets $23,516,232 $25,769,652 $25,629,760 $25,644,428 Unrestricted 11,741,791 9,119,032 7,514,603 7,499,935 Total business-type activities net position $35,258,023 $34,888,684 $33,144,363 $33,144,363 Total primary government Net investment in capital assets $61,558,299 $73,325,635 $82,473,234 $100,528,340 Restricted 3,928,407 10,841,736 9,340,767 13,098,282 Unrestricted 77,383,433 68,601,696 67,976,937 53,655,591 Total primary government $142,870,139 $152,769,067 $159,790,938 $167,282,213 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. Fiscal Year 148 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 156 Table 1 2008 2009 2010 2011 2012 2013 $76,600,774 $89,252,994 $94,326,512 $99,835,484 $95,020,700 $96,480,493 - 20,075,976 21,692,426 17,695,996 18,941,172 13,560,965 65,908,328 40,508,755 40,581,189 43,929,086 46,413,200 45,688,600 $142,509,102 $149,837,725 $156,600,127 $161,460,566 $160,375,072 $155,730,058 $27,559,942 $23,977,469 $21,717,923 $22,347,266 $22,906,086 $19,127,309 6,414,768 6,903,776 8,433,915 8,524,086 9,829,024 11,540,303 $33,974,710 $30,881,245 $30,151,838 $30,871,352 $32,735,110 $30,667,612 $104,160,716 $113,230,463 $116,044,435 $122,182,750 $117,926,786 $115,607,802 - 20,075,976 21,692,426 17,695,996 18,941,172 13,560,965 72,323,096 47,412,531 49,015,104 52,453,172 56,001,992 57,228,903 $176,483,812 $180,718,970 $186,751,965 $192,331,918 $192,869,950 $186,397,670 Fiscal Year 149 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 157 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2004 2005 2006 2007 Expenses Governmental activities General government $6,580,494 $6,802,845 $7,155,916 $8,251,341 Public safety 9,765,605 10,262,906 11,695,841 10,721,803 Public works 4,805,735 5,520,192 6,895,260 5,979,789 Public information 255,237 262,962 231,124 404,074 Culture and recreation 5,477,788 6,262,800 6,399,633 6,916,001 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation 285,019 397,834 728,433 1,079,211 Housing maintenance 229,861 161,558 373,393 121,118 Social and economic development 1,105,501 3,888,897 9,784,543 5,910,149 General services 1,596 7,626 22,484 6,830 Interest on long-term debt 1,784,022 1,478,427 1,345,023 1,301,266 Total governmental activities expenses 30,290,858 35,046,047 44,631,650 40,691,582 Business-type activities Water 2,655,285 2,607,123 2,845,614 3,285,107 Sewer 3,986,920 3,904,543 4,268,952 4,199,659 Solid waste - - - - Refuse 1,996,615 2,019,204 2,029,302 2,019,595 Storm water 752,331 793,977 1,032,410 1,088,170 Wireless - - 402,683 1,151,751 Total business-type activities expenses 9,391,151 9,324,847 10,578,961 11,744,282 Total expenses $39,682,009 $44,370,894 $55,210,611 $52,435,864 Program revenues Governmental activities Charges for services General government $645,050 $639,679 $936,199 $978,058 Public safety 2,739,097 3,488,259 3,049,369 2,977,475 Public works - - 432,932 1,483,824 Public information - - - - Culture and recreation 2,223,977 2,317,222 1,886,153 2,409,625 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation - - 456,088 527,536 Housing maintenance 1,189,257 1,378,015 - - Social and economic development - - 32,456 202,110 Interest on long-term debt - - - - Operating grants and contributions 2,499,857 1,283,407 7,703,241 3,908,485 Capital grants and contributions 696,152 2,412,375 6,290,881 2,113,560 Total governmental activities program revenue 9,993,390 11,518,957 20,787,319 14,600,673 Business-type activities Charges for services Water 2,567,638 2,363,709 2,968,926 3,461,301 Sewer 4,263,433 4,367,868 4,584,802 4,820,732 Solid waste - - - - Refuse 2,021,725 1,857,808 2,124,203 2,395,469 Storm water 802,856 914,701 1,169,915 1,473,746 Wireless - - 41,057 68,959 Operating grants and contributions - 119,165 263,181 208,814 Capital grants and contributions - 1,236,740 209,277 - Total business-type activities program revenue 9,655,652 10,859,991 11,361,361 12,429,021 Total program revenues $19,649,042 $22,378,948 $32,148,680 $27,029,694 Fiscal Year 150 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 158 Table 2 Page 1 of 2 2008 2009 2010 2011 2012 2013 $8,216,816 $8,167,355 $7,192,652 $7,247,716 $7,387,354 $10,085,905 11,867,403 12,138,185 12,256,272 12,535,793 13,264,220 13,365,297 6,904,217 6,915,541 19,446,758 7,513,833 - - 425,829 457,872 435,050 803,885 524,012 466,043 7,352,406 7,456,215 7,792,614 7,882,789 - - - - - - 15,209,548 13,487,238 - - - - 5,253,969 16,046,665 1,615,010 1,544,175 4,150,595 794,935 3,914,261 1,774,657 199,757 128,099 241,345 79,786 116,949 141,250 5,494,634 6,321,623 4,861,518 6,171,527 7,810,635 9,040,280 2,653 7,662 - - - - 1,329,767 1,543,879 1,453,555 1,695,758 1,245,294 1,295,298 43,408,492 44,680,606 57,830,359 44,726,022 54,726,242 65,702,633 3,391,992 4,089,837 3,904,801 3,839,592 3,890,860 5,747,116 4,485,386 4,228,680 4,193,191 4,572,869 4,593,166 5,272,646 - - 2,116,949 2,319,099 2,562,985 3,614,118 2,135,677 2,125,540 - - - - 1,172,199 1,287,202 1,325,803 1,373,546 1,485,390 1,390,235 315,664 151,708 - - - - 11,500,918 11,882,967 11,540,744 12,105,106 12,532,401 16,024,115 $54,909,410 $56,563,573 $69,371,103 $56,831,128 $67,258,643 $81,726,748 $955,811 $888,246 $1,065,209 $1,059,527 $1,060,679 $1,024,253 4,282,699 2,958,383 2,898,634 2,917,525 3,344,449 3,109,813 380,452 2,292,287 601,890 315,163 - - - - - 200,000 - - 2,121,505 2,083,015 1,959,556 2,111,348 2,438,841 - - - - - - 2,035,715 - - - - - 1,032 507,163 562,930 8,833 62,191 8,162 8,606 - - - - - - 173,960 184,236 588,757 316,935 281,002 250,015 - 318,134 - - - - 3,581,092 2,664,563 1,735,926 2,065,312 2,360,465 2,709,644 2,822,683 2,131,755 14,908,522 1,878,697 6,290,076 11,881,109 14,825,365 14,083,549 23,767,327 10,926,698 15,783,674 21,020,187 3,584,384 4,294,962 4,148,394 4,475,068 5,109,446 5,037,067 4,506,339 5,153,171 5,277,473 5,768,266 5,959,931 5,822,085 - - 2,719,376 2,894,726 2,858,930 2,912,415 2,348,133 2,458,555 - - - - 1,529,180 1,699,557 1,829,792 1,904,587 1,977,663 2,054,915 51,322 16,140 - - - - 966,053 167,604 103,342 103,166 105,976 135,642 1,040,384 - 2,890 - - - 14,025,795 13,789,989 14,081,267 15,145,813 16,011,946 15,962,124 $28,851,160 $27,873,538 $37,848,594 $26,072,511 $31,795,620 $36,982,311 Fiscal Year 151 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 159 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2004 2005 2006 2007 Net (expenses) revenues Governmental activities ($20,297,468) ($23,527,090) ($23,844,331) ($26,090,909) Business-type activities 264,501 1,535,144 755,400 684,739 Total primary government ($20,032,967) ($21,991,946) ($23,088,931) ($25,406,170) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes $20,259,269 $21,965,197 $23,538,989 $26,163,519 Tax increment Franchise taxes 1,283,654 1,431,779 1,358,902 1,440,034 State grants and contributions not restricted to specific programs 1,701,769 1,520,187 932,634 825,327 Unrestricted investment earnings 942,743 1,484,873 2,881,818 4,139,689 Gain on sale of capital assets 101,593 182,373 128,344 378,075 Miscellaneous 470,409 672,032 474,054 341,335 Transfers 1,966,473 2,095,521 1,923,760 1,996,291 Total governmental activities expenses 26,725,910 29,351,962 31,238,501 35,284,270 Business-type activities: Unrestricted investment earnings 167,840 184,950 254,966 466,923 Miscellaneous (111,357) 3,949 13,702 - Gain on sale of capital assets - 2,139 - - Transfers (1,966,473) (2,095,521) (1,923,760) (1,996,291) Total business-type activities expenses (1,909,990) (1,904,483) (1,655,092) (1,529,368) Total primary government $24,815,920 $27,447,479 $29,583,409 $33,754,902 Change in net position: Governmental activities $6,428,442 $5,824,872 $7,394,170 $9,193,361 Business-type activities (1,645,489) (369,339) (899,692) (844,629) Prior period adjustment - - (474,033) 143,969 Total primary government $4,782,953 $5,455,533 $6,020,445 $8,492,701 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. Fiscal Year 152 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 160 Table 2 Page 2 of 2 2008 2009 2010 2011 2012 2013 ($28,583,127) ($30,597,057) ($34,063,032) ($33,799,324) ($38,942,568) ($44,682,446) 2,524,877 1,907,022 2,540,523 3,040,707 3,479,545 (61,991) ($26,058,250) ($28,690,035) ($31,522,509) ($30,758,617) ($35,463,023) ($44,744,437) $28,523,119 $29,512,631 $29,642,090 $23,527,322 $24,625,789 $26,963,176 7,222,976 6,446,389 6,647,729 1,507,994 1,503,075 1,497,178 1,894,714 1,954,557 2,211,569 519,850 153,108 151,624 156,325 46,422 45,266 2,133,858 1,452,176 629,094 1,048,395 663,978 138,899 1,842,601 91,149 34,453 51,686 60,416 69,237 470,230 11,229 950,231 2,300,478 2,183,685 2,199,629 1,956,727 5,202,312 3,358,921 2,457,867 1,660,035 1,761,927 36,954,379 37,925,680 36,263,591 38,659,763 37,641,271 40,037,432 243,724 201,825 88,991 136,674 113,260 (3,348) 18,473 - - - - - - - - - - - (1,956,727) (5,202,312) (3,358,921) (2,457,867) (1,660,035) (1,761,927) (1,694,530) (5,000,487) (3,269,930) (2,321,193) (1,546,775) (1,765,275) $35,259,849 $32,925,193 $32,993,661 $36,338,570 $36,094,496 $38,272,157 $8,371,252 $7,328,623 $2,200,559 $4,860,439 ($1,301,297) ($4,645,014) 830,347 (3,093,465) (729,407) 719,514 1,932,770 (1,827,266) - - - - - - $9,201,599 $4,235,158 $1,471,152 $5,579,953 $631,473 ($6,472,280) Fiscal Year 153 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 161 - This page intentionally left blank - 154 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 162 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 2004 $20,259,269 $1,283,654 $21,542,923 2005 21,965,197 1,431,779 23,396,976 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 35,822,474 155 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 163 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2004 2005 2006 2007 General fund Reserved $42,267 $118,002 $104,774 $13,719 Unreserved 8,153,025 8,622,091 9,847,341 10,100,187 Nonspendable - - - - Restricted - - - - Assigned - - - - Unassigned - - - - Total General fund $8,195,292 $8,740,093 $9,952,115 $10,113,906 All other governmental funds Reserved $9,548,264 $19,338,220 $9,276,305 $10,229,125 Unreserved, reported in: Special revenue funds 8,333,265 7,707,696 10,012,784 9,450,210 Capital projects funds 33,435,630 30,396,836 38,126,004 38,889,030 Other funds 5,430,918 2,257,068 - - Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $56,748,077 $59,699,820 $57,415,093 $58,568,365 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 156 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 164 Table 4 2008 2009 2010 2011 2012 2013 $29,368 $572,206 $ - $ - $ - $ - 11,697,232 7,326,638 - - - - - - 80,664 71,192 70,450 256,251 - - 425,967 427,718 458,448 498,922 - - 124,503 139,483 690,242 691,171 - - 10,399,401 10,799,829 10,757,776 14,342,422 $11,726,600 $7,898,844 $11,030,535 $11,438,222 $11,976,916 $15,788,766 $10,610,175 $7,540,696 $ - $ - $ - $ - 7,134,284 7,568,944 - - - - 43,134,211 40,680,331 - - - - - - - - - - - - 11,570,382 11,391,114 14,059,579 13,889,317 - - 32,296,848 18,298,167 17,196,417 11,769,076 - - 466,792 511,610 459,160 467,682 - - 25,151,409 26,518,495 25,583,093 22,925,072 - - (7,872,234) (5,042,828) (7,567,117) (7,020,483) $60,878,670 $55,789,971 $61,613,197 $51,676,558 $49,731,132 $42,030,664 Fiscal Year 157 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 165 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) 2004 2005 2006 2007 Revenues Taxes $20,146,562 $21,909,256 $19,416,738 $20,951,991 Tax increments - - 5,390,257 6,597,092 Franchise taxes Licenses and permits 2,569,868 2,932,988 2,934,270 2,946,749 Intergovernmental 3,608,768 5,410,252 12,943,457 3,737,619 Charges for services 4,935,172 4,197,987 2,394,509 276,693 Fines and forfeits 251,256 286,003 322,558 4,482,834 Special assessments 920,680 827,361 843,030 840,965 Investment earnings 854,636 1,323,843 2,717,490 3,851,542 Miscellaneous 2,431,999 2,397,275 2,648,354 3,038,836 Total revenues 35,718,941 39,284,965 49,610,663 46,724,321 Expenditures General government 5,298,509 5,662,931 5,985,314 6,642,231 Public safety 9,628,174 11,221,408 11,060,618 10,851,256 Public works 4,000,282 3,772,650 4,934,433 4,089,223 Public information 249,388 259,461 227,106 393,863 Culture and recreation 4,786,730 5,271,726 6,095,959 7,274,375 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation 285,019 397,834 739,391 688,062 Housing maintenance 229,861 161,558 373,393 121,118 Social and economic development 791,110 1,405,434 9,124,251 5,822,842 General services 1,596 7,626 22,484 6,830 Debt service: Principal 3,155,000 3,680,000 6,360,000 4,065,000 Interest 1,693,689 1,626,517 1,450,460 1,304,565 Other charges - 59,589 - - Capital outlay 7,382,608 11,206,131 4,567,251 5,804,342 Total expenditures 37,501,966 44,732,865 50,940,660 47,063,707 Excess (deficiency) of revenues over (under) expenditures (1,783,025) (5,447,900) (1,329,997) (339,386) Other financing sources (uses) Transfers in 10,608,768 9,650,253 6,432,713 8,383,989 Transfers out (8,757,973) (8,716,751) (5,480,804) (7,008,202) Principal paid on refunded bonds (7,295,000) - - - Refunding bonds issued - 2,370,000 - - Bonds issued 7,490,000 3,705,000 - - Premium on bonds issued - 151,602 - - Discount on bonds issued (77,962)(5,746) - - Redemption of refunded bonds - - - - Payments to refunded bond escrow agent - - - - Costs paid to refunded bond escrow agent - - - - Gain (loss) on sale of capital assets 132,496 1,566,691 (220,584) 278,662 Total other financing sources (uses)2,100,329 8,721,049 731,325 1,654,449 Net change in fund balances $317,304 $3,273,149 ($598,672) $1,315,063 Debt service as a percentage of noncapital expenditures 16.10%15.83%16.84%13.01% Fiscal Year 158 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 166 Table 5 2008 2009 2010 2011 2012 2013 $21,563,302 $21,700,329 $22,667,190 $23,336,537 $24,259,861 $25,658,762 8,371,424 7,846,204 6,649,563 7,222,976 6,446,389 6,647,729 1,503,075 1,497,178 1,894,714 1,954,557 2,211,569 4,072,753 2,786,032 2,359,716 2,797,700 3,241,813 3,069,090 2,424,119 3,867,795 11,879,601 3,105,500 2,983,191 13,887,247 324,512 4,228,179 4,051,971 3,897,710 3,547,900 3,052,789 3,894,839 332,694 401,610 281,047 341,356 311,882 703,484 800,054 1,550,110 985,912 2,233,715 1,505,568 1,990,854 1,358,170 612,098 949,510 622,450 123,306 3,591,212 2,615,062 3,050,231 2,285,608 2,188,262 2,216,820 46,936,499 47,037,594 54,719,268 46,757,214 47,819,494 58,684,762 6,642,295 6,472,022 6,219,751 6,415,318 6,503,965 7,162,588 11,744,656 11,949,612 11,771,246 11,885,577 12,571,356 12,435,341 4,671,631 4,637,289 15,624,494 4,437,939 - - 415,609 445,146 387,459 383,586 470,280 408,683 6,213,945 6,027,059 6,234,938 6,546,054 - - - - - - 13,955,142 10,083,541 - - - - 939,416 15,998,842 1,621,099 1,550,264 4,144,378 790,918 3,881,500 1,715,540 199,757 128,099 241,170 79,786 116,949 141,250 5,162,698 6,241,123 4,720,638 6,426,013 7,681,176 8,910,821 2,653 7,662 - - - - 4,485,000 4,709,000 2,170,000 5,420,000 1,285,000 3,275,000 1,365,484 1,322,477 1,170,286 1,170,549 1,235,118 1,298,016 - - 453,288 1,040 46,435 3,895 9,998,748 10,314,002 6,306,083 14,295,009 3,930,528 2,089,798 52,523,575 53,803,755 59,443,731 57,851,789 52,616,865 63,523,315 (5,587,076) (6,766,161) (4,724,463) (11,094,575) (4,797,371) (4,838,553) 11,129,934 9,939,299 11,809,353 7,086,529 6,395,355 10,472,534 (9,233,136) (10,579,081) (14,974,391) (5,520,906) (5,580,044) (9,531,189) - - - - - - - - 3,615,000 - 1,290,000 - 5,490,000 2,000,000 16,130,000 - - - - 10,202 2,792 - - - - - - - - - - - (1,825,000) - - - - (6,045,000)4,430,000 - - - - (199,425)(4,164,000) - - - 2,123,277 - 27,412 - 885,328 8,590 9,510,075 (4,874,005)15,051,166 1,565,623 2,990,639 949,935 $3,922,999 ($11,640,166)$10,326,703 ($9,528,952)($1,806,732)($3,888,618) 13.76%13.87%6.29%12.86%5.27%7.45% Fiscal Year 159 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 167 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 2004 2005 2006 2007 Population 44,896 44,511 44,422 43,145 Real Property Total assessed/tax capacity value $51,772,756 $56,737,869 $62,912,413 $68,025,921 Less tax increment districts -(4,665,583) (5,211,867) (6,335,246) (7,644,566) Area-wide allocation (net)(703,750) (1,153,662) (1,186,353) (1,498,263) Net assessed/tax capacity value $47,107,173 $50,372,340 $55,390,814 $58,883,092 Estimated market value $4,828,585,300 $4,841,195,800 $5,232,595,500 $5,553,715,600 Personal Property Assessed/tax capacity value $456,914 $464,571 $489,063 $458,627 Estimated market value $23,123,200 $23,527,400 $24,807,500 $23,263,700 Total Real and Personal Property Assessed/tax capacity value $46,860,340 $50,836,911 $55,879,877 $59,341,719 Estimated market value $4,851,708,500 $4,864,723,200 $5,257,403,000 $5,576,979,300 Tax Capacity Rate 36.0% 35.2% 34.3% 34.1% Fiscal Year 160 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 168 Table 6 2008 2009 2010 2011 2012 2013 47,198 47,221 45,250 44,665 45,505 46,362 $68,006,453 $69,704,858 $68,386,268 $65,611,006 $62,602,680 $61,348,576 (7,639,464) (8,276,993) (6,976,791) (6,379,980) (5,426,995) (5,587,609) (1,498,263) (1,635,724) (1,231,482) (2,775,483) (3,220,881) (2,940,678) $58,868,726 $59,792,141 $60,177,995 $56,455,543 $53,954,804 $52,820,289 $5,552,520,000 $5,633,028,200 $5,550,563,700 $5,302,557,500 $5,226,900,300 $5,103,186,900 $458,627 $434,825 $428,760 $478,864 $490,122 $559,718 $23,263,700 $22,006,100 $21,712,100 $24,363,800 $24,962,100 $28,487,900 $59,327,353 $60,226,966 $60,606,755 $56,934,407 $54,444,926 $53,380,007 $5,575,783,700 $5,655,034,300 $5,572,275,800 $5,326,921,300 $5,251,862,400 $5,131,674,800 35.6% 36.9% 37.7% 41.7% 43.9% 46.6% Fiscal Year 161 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 169 STATISTICAL SECTION (UNAUDITED)Table 7 2006 2007 2008 2009 2010 2011 2012 2013 Operating Rate 34.164 32.344 32.504 34.402 34.869 39.689 40.303 42.902 Debt Service Rate 2.180 2.394 2.255 2.265 2.247 1.77 3.563 3.65 Total City of St. Louis Park 36.344 34.738 34.759 36.667 37.116 41.459 43.866 46.552 County Operating Rate 41.016 39.11 38.571 40.413 42.640 45.840 48.231 49.461 School District Operating Rate 8.665 11.704 8.691 9.08 9.295 12.917 13.324 13.976 Debt Service Rate 11.912 11.781 10.889 11.257 11.803 13.539 15.946 15.754 Other Taxing Districts St. Louis Park HRA Levy 1.259 1.336 1.344 1.759 1.718 1.817 1.806 1.676 Metro Mosquito Control 0.509 0.499 0.486 0.489 0.461 0.525 0.537 0.556 Metro Council 0.873 0.877 0.812 0.817 0.793 0.885 0.94 0.997 Metro Transit Debt 1.542 1.295 1.264 1.273 1.366 1.539 1.607 1.689 Hennepin County HRA - - - - 0.241 0.397 0.403 0.478 Hennepin Parks 2.830 3.068 3.137 3.334 3.499 3.765 3.943 4.054 Park Museum 0.685 0.700 0.719 0.771 0.778 0.815 0.799 0.754 HC Regional Railroad Authority 0.559 0.871 0.979 0.470 1.000 1.246 1.294 1.561 Referendum Market Value Based Rate - - - - 0.152 0.148 0.000 Watershed 1.072 1.121 1.404 1.489 1.511 1.606 1.705 1.769 Total 107.266 107.100 103.055 107.819 112.373 126.498 134.401 139.277 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 162 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 170 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 Interchange Investors (formerly WHIOP Real Estate Ltd. Partnership) $95,690,000 1 1.86% 86,430,000$ 1 1.78% G & I VII 1600 & Moneygram LLC 76,000,000 2 1.48%- 0.00% Duke-Weeks Realty (formerly MEPC American Properties)75,657,000$ 3 1.47% 60,205,000 2 1.24% Excelsior & Grand 54,080,000 4 1.05%- 0.00% PNMC Holdings 46,645,700 5 0.91% 36,243,000 4 0.75% MLCFC 2006 43,000,000 6 0.84%- 0.00% Camerata LLC 36,300,000 7 0.71%- 0.00% 36 Park LLC 32,640,000 8 0.64%- 0.00% Ellipse On Excelsior LLC 32,300,000 9 0.63%- 0.00% WTC No 459 Corp 30,450,000 10 0.59%- 0.00% Park Glen - 0.00% 21,500,000 6 0.44% Parkdale Associates - 0.00% 31,200,000 5 0.64% Park Place OPCO LLC - 0.00% 37,550,000 3 0.77% Park Blvd. Housing Partnership - 0.00% 19,665,000 7 0.41% Meadowbrook Manor, Inc.- 0.00% 12,400,000 10 0.26% Wyndham International - 0.00% 14,100,000 8 0.29% Xcel Energy - 0.00% 13,406,100 9 0.28% Total $522,762,700 10.19% $332,699,100 6.86% Total taxable assessed value $5,131,674,800 $4,851,708,500 Taxpayer 2013 2004 163 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 171 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 2004 $16,866,840 $16,633,041 98.61% $16,299,691 100.00% 2005 17,901,681 17,644,699 98.56% 17,880,791 100.00% 2006 19,156,317 18,838,892 98.34% 18,358,133 100.00% 2007 20,221,086 19,965,208 98.73% 19,532,175 100.00% 2008 21,100,651 20,693,403 98.07% 20,621,209 100.00% 2009 22,204,522 21,796,296 98.16% 22,017,344 100.00% 2010 22,841,195 22,465,478 98.36% 22,465,478 100.00% 2011 23,724,816 23,368,028 98.50% 23,368,028 99.94% 2012 24,746,325 24,435,571 98.74% 24,435,571 98.74% 2013 25,613,874 25,379,070 99.08% 25,379,070 99.08% Collected Within the Fiscal Year of the Levy Total Collections to Date 164 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 172 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST NINE 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) 2005 $13,335,000 $22,795,000 $15,000 $2,550,000 $29,082 $38,724,082 2.60% 871.73$ 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 - 11,335,000 - 45,080,000 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 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 171 for personal income and population data. Governmental Activities Business Type Activities 165 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 173 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST NINE 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) 2005 $13,335,000 $1,200,313 $12,134,687 0.25% $272.62 2006 12,645,000 1,383,783 11,261,217 0.21% 245.43 2007 11,805,000 1,715,646 10,089,354 0.18% 223.14 2008 10,715,000 1,798,636 8,916,364 0.16% 188.91 2009 9,590,000 1,378,737 8,211,263 0.15% 173.89 2010 26,335,000 2,765,611 23,569,389 0.42% 520.87 2011 21,420,000 2,792,922 18,627,078 0.35% 417.04 2012 21,730,000 3,862,613 17,867,387 0.34% 392.65 2013 20,185,000 2,409,643 17,775,357 0.34% 383.40 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. (1) See the Schedule of Assessed Value/Tax Capacity Value and Estimated Market Value on page 160 for property value data. (2) Population data can be found in the Schedule of Demographic Statistics on page 171. 166 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 174 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2013 Share of Debt Percentage Overlapping Outstanding (1) Applicable (2) Debt Overlapping Debt: Hennepin County 723,264,582$ 0.04 28,424,298$ St. Louis Park Independent School District 39,643,656 99.58% 39,477,153 Hopkins Independent School District 169,181,538 3.43% 5,802,927 Edina Independent School District 62,133,856 0.07% 43,494 Hennepin County Suburban Park District 54,166,123 5.34% 2,892,471 Hennepin Regional RR Authority 37,350,216 5.34% 1,994,502 Metropolitan Council 158,664,771 1.80% 2,855,966 Subtotal of Overlapping Debt: 1,244,404,742 81,490,810 Direct Debt: City of St. Louis Park 20,185,000 100.00% 20,185,000 Total of Direct and Overlapping Debt: 1,264,589,742$ 101,675,810$ 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 167 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 175 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST EIGHT FISCAL YEARS 2006 2007 2008 Debt Limit $105,148,060 $111,539,586 $167,273,511 Total Net Debt Applicable to Limit 3,497,669 3,127,988 2,747,414 Legal Debt Margin $101,650,391 $108,411,598 $164,526,097 Total Net Debt Applicable to the Limit as a percentage of Debt Limit 3.33% 2.80% 1.64% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value $5,257,403,000 $5,576,979,300 $5,575,783,700 Debt Limit (3% of taxable market value) $105,148,060 $111,539,586 $167,273,511 Debt applicable to limit: Total Bonded Debt 32,135,000 31,540,000 36,280,000 Less: Amount Set Aside for Repayment of G.O. Bonds (207,331) (452,012) (487,586) G.O. Revenue Bonds (2,365,000) (5,835,000) (9,570,000) G.O. Improvement Bonds (8,940,000) (8,225,000) (7,480,000) G.O. Tax Increment Bonds (17,125,000) (13,900,000) (15,995,000) Total Net Debt Applicable to Limit: 3,497,669 3,127,988 2,747,414 Legal Debt Margin: $101,650,391 $108,411,598 $164,526,097 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 168 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 176 Table 13 2009 2010 2011 2012 2013 $159,807,639 $167,168,274 $159,807,639 $157,555,872 153,950,244$ (16,300,000) 15,535,000 15,150,000 14,755,000 13,820,000$ $176,107,639 $151,633,274 $144,657,639 $142,800,872 $140,130,244 -10.20% 9.29% 9.48% 9.36% 8.98% $5,326,921,300 $5,572,275,800 $5,326,921,300 $5,251,862,400 $5,131,674,800 $159,807,639 $167,168,274 $159,807,639 $157,555,872 $153,950,244 - 45,079,924 38,880,000 37,930,000 37,840,000 - (11,334,924) (10,555,000) (9,600,000) (12,785,000) (6,710,000) (10,800,000) (6,270,000) (6,975,000) (6,365,000) (9,590,000) (7,410,000) (6,905,000) (6,600,000) (4,870,000) (16,300,000) 15,535,000 15,150,000 14,755,000 13,820,000 $176,107,639 $151,633,274 $144,657,639 $142,800,872 $140,130,244 Fiscal Year 169 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 177 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 14 PLEDGED REVENUE BOND COVERAGE LAST EIGHT FISCAL YEARS Utility Less: Net Fiscal Charges Operating Available Year and Other Expenses Revenue Principal Interest Coverage 2006 $1,189,239 ($904,916) $284,323 $185,000 $111,595 0.96% 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% 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 170 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 178 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) 2004 44,896 $1,421,229 $31,656 37.1 4,261 4.1% 2005 44,511 1,451,311 32,606 37.5 4,251 3.4% 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% Source: (1) Federal Census Bureau data (2) St. Louis Park School District (3) Minnesota Department of Employment and Economic Development 171 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 179 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 5,799 1 21.5 % 7,440 1 26.1 % St. Louis Park Public Schools 671 2 2.5 761 3 2.7 Japs-Olson Company 600 3 2.2 590 4 2.1 MoneyGram International (formerly Travelers Express) 554 4 2.1 420 8 1.5 Sholom Home West 552 5 2.0 422 7 1.5 Super Target 435 6 1.6 - - St. Louis Park, City of 429 7 1.6 470 6 1.6 Golden Living Center 277 8 1.0 - - Epicor Software Corporation 275 9 1.0 - - Lifetime Fitness 250 10 0.9 - - Allied Interstate - - 389 9 1.4 Knollwood Mall - - 1,700 2 6.0 Miracle Mile Shopping Center - - 350 10 1.2 Nestle Nutrition (formerly Novartis Nutrition)- - 490 5 1.7 - Total 9,842 36.5 % 13,032 45.7 % Total City employment 26,982 28,525 2013 2004 Employer Employment Percentage of Total City Percentage of Total City Employment 172 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 180 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 17 FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST NINE FISCAL YEARS 2005 2006 2007 2008 2009 2010 2011 2012 2013 Function General government 115.0 119.1 123.0 122.5 114.5 105.5 95.4 90.3 88.8 Public safety Police Officers 51.0 51.0 51.0 51.0 51.0 51.0 51.0 52.0 52.0 Civilians 18.5 19.5 19.5 18.5 17.0 20.0 23.0 30.0 34.0 Fire Firefighters and officers 25.0 25.0 25.0 25.0 25.0 25.0 24.0 24.0 24.0 Public Works 33.0 32.7 32.0 32.0 32.0 32.0 32.0 33.0 35.0 Water 7.8 7.8 10.3 11.4 11.4 9.9 11.2 11.2 10.9 Sewer 6.7 5.7 3.7 2.7 2.7 3.6 4.9 4.9 4.9 Refuse 0.7 0.7 0.7 1.8 1.8 1.8 3.3 3.3 3.3 Storm Water 2.0 2.0 2.6 2.6 2.6 3.3 4.9 4.8 4.8 Total Employees 259.7 263.5 267.8 267.5 258.0 252.0 249.7 253.5 257.7 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 173 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 181 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 18 OPERATING INDICATORS BY FUNCTION LAST NINE FISCAL YEARS 2005 2006 2007 2008 2009 2010 2011 2012 2013 Police Medical calls 2,660 2,876 2,881 3,153 3,110 3,188 3,101 3,152 3,296 Traffic stops 1,959 2,510 1,981 2,724 2,462 4,236 5,362 7,146 6,674 Other 23,508 25,394 24,996 24,412 22,562 21,355 21,742 24,354 25,014 Fire Inspections/medical/all other calls 3,970 4,109 4,141 4,357 4,429 3,893 3,078 3,117 3,360 Fire calls - residential 38 67 45 52 82 50 69 66 53 Fire calls - structural 11 16 16 9 14 57 84 76 13 Fire calls - other 60 58 71 46 68 37 53 64 48 Cable TV Hours of new programming 121 124 94 294 250 456 535 549.5 Inspections Permits 8,092 8,527 8,616 13,687 8,895 8,397 9,220 9,091 10,254 Inspections 18,316 18,916 17,797 24,022 27,332 20,204 22,818 23,667 26,902 Culture and recreation Aquatic park attendance 88,491 75,380 80,347 76,218 67,617 69,825 67,422 70,270 52,557 Hours of ice time 6,546 6,508 6,574 6,787 6,354 6,493 4,687 5,444 4,701 Water Gallons of water production (billions)2.0 2.2 2.3 2.4 2.4 2.1 2.1 2.4 2.2 Average watermain breaks per year 30 30 30 30 30 30 30 30 27 Public Works Snowplowing hours 1,236 1,165 1,556 1,672 2,454 3,216 2,543 1,173 6,449 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 174 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 182 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 19 CAPITAL ASSET STATISTICS BY FUNCTION LAST NINE FISCAL YEARS 2005 2006 2007 2008 2009 2010 2011 2012 2013 Function Public safety Police Stations 11111111 1 Patrol units 22 25 26 26 26 26 26 28 26 Fire Stations 22222222 2 Vehicles 10 13 13 13 13 13 13 14 13 Fire hydrants 1,699 1,699 1,699 1,699 1,699 1,699 1,699 1,699 1699 Culture and recreation Parks 51 51 51 53 53 53 57 57 57 Trails 10 10 10 10 10 10 10 10 10 Streets Lane miles of streets 290 290 290 290 310 311 311 311 311 Miles of streets 117 117 117 117 155 156 155 155 155 Water Wells 11 11 11 11 11 11 11 11 11 Water treatment plants 66666666 6 Miles of watermain 148 148 148 148 148 149 160 160 160 Sanitary Sewer Lift stations 23 23 23 23 23 23 23 23 23 Miles of sewermain 138 138 138 138 138 139 147 147 147 Storm Sewer Lift stations 10 10 10 10 10 10 10 10 10 Ponds and lakes 26 26 26 26 26 52 52 52 52 Catch basins 2,943 2,943 2,943 2,943 3,154 3,731 3,731 3731 3731 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 175 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 183 - This page intentionally left blank - 176 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 184 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. 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, 2013. 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 December 3, 2013. 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. For fiscal year 2013, the City was required to implement GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. The most significant effects of this standard are that accounts previously presented as liabilities are now reported as deferred inflows of resources and beginning net position was restated to expense bond issuance costs in the year of debt issuance. 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. 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 financial statements are management’s estimate of the net OPEB obligation which is based on the OPEB actuarial study and management’s estimate of the value of land held for resale which is based on the estimated recoverable costs. We evaluated the key factors and assumptions used to develop the estimate for the net OPEB obligation and the value for the land held for resale in determining that they are reasonable in relation to the financial statements taken as a whole. Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 185 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 2 The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no 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 trivial, and communicate them to the appropriate level of management. We identified the following uncorrected misstatements of the financial statements:  Delinquent property taxes receivable and property tax revenue are understated by $120,581 related negative receivable balance reported by the County for fiscal years 2008-2011. Management has determined that the effect is immaterial to the financial statements taken as a whole. In addition, the Prior Period Adjustment for $240,232 relating to unearned antenna lease revenue was recorded in the 2013 financial statements. 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. Management Representations We have requested certain representations from management that are included in the management representation letter dated May 22, 2014. Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 186 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 3 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, 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 major and nonmajor 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. We are not engaged to report on the introductory, other financial information 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. Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 187 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 4 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. HLB TAUTGES REDPATH, LTD. May 22, 2014 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 188 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND INDEPENDENT AUDITOR’S REPORTS For The Year Ended December 31, 2013 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 189 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page No. 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 1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 3 Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 Minnesota Legal Compliance Report 10 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 190 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. 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 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, 2013, 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 May 22, 2014. 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. Our consideration of internal control was for the limited purpose described in the preceding paragraph 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. However, as described in the accompanying schedule of findings and questioned costs, we identified a deficiency in internal control that we consider to be a material weakness. 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. We consider the 1 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 191 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Page 2 deficiency described in the accompanying schedule of findings and questioned costs as finding 2013-01 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 questioned costs. 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. HLB TAUTGES REDPATH, LTD. May 22, 2014 2 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 192 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Report on Compliance for Each Major Federal Program We have audited the City of St. Louis Park, Minnesota’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City of St. Louis Park, Minnesota’s major federal programs for the year ended December 31, 2013. The City of St. Louis Park, Minnesota’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City of St. Louis Park, Minnesota’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of St. Louis Park, Minnesota’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. 3 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 193 Report on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 Page 2 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the City of St. Louis Park, Minnesota’s compliance. Opinion on Each Major Federal Program In our opinion, the City of St. Louis Park, Minnesota, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2013. Report on Internal Control over Compliance Management of the City of St. Louis Park, Minnesota is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City of St. Louis Park, Minnesota’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 4 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 194 Report on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 Page 3 Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 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 as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements. We issued our report thereon dated May 22, 2014, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on those financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 schedule of expenditures and federal awards is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 5 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 195 Report on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 Page 4 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. HLB TAUTGES REDPATH, LTD. May 22, 2014 6 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 196 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended December 31, 2013 Federal Grantor/Federal Pass-Through Pass-Through Grantor/CFDA Entity ID Federal Program Title Number Number Expenditures U.S. Department of Housing and Urban Development: Passed through Hennepin County, Minnesota: Community Development Block Grant 14.218 A120538 $127,577 U.S. Department of Justice: Bulletproof Vest Partnership Program 16.607 n/a - Direct 3,000 Passed through Hennepin County, Minnesota: Justice Assistance Grant (JAG) Program 16.804 A110954 10,618 Total U.S. Department of Justice 13,618 U.S. Department of Transportation: Passed through State of Minnesota: Highway Planning and Construction 20.205 163-010-038 5,535,941 Total U.S. Department of Transportation 5,535,941 U.S. Department of Homeland Security: Passed through State of Minnesota: FEMA Disaster Assistance 97.036 None Noted 333,780 Total Expenditures of Federal Awards $6,010,916 Notes to the Schedule of Expenditures of Federal Awards Note 1. Basis of Presentation The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of federal award programs expended by the City of St. Louis Park, Minnesota under programs of the federal government for the year ended December 31, 2013. The Schedule is presented in accordance with the requirements of OMB Circular A-133, Audit of States, Local Governments and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of the City of St. Louis Park, Minnesota, it is not intended to and does not present the financial positions, or change in financial position of the City of St. Louis Park, Minnesota. Note 2. Summary of Significant Accounting Policies a.) Expenditures reported on the Schedule are reported on the modified accrual basics of accounting. b.) Pass-Through entity identifying numbers are presented where available. Note 3. Subrecipients Of the federal expenditures presented in the schedule, the City of St. Louis Park provided federal awards to subrecipients as follows: Federal Amount CFDA Provided to Program Title Number Subrecipients Community Development Block Grant 14.218 $127,577 7 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 197 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended December 31, 2013 SECTION I - SUMMARY OF AUDITOR’S RESULTS Financial Statements A. Type of auditors’ report issued: Unmodified B. Internal control over financial reporting:  Material weakness(es) identified? X Yes No  Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported C. Noncompliance material to financial statements noted? Yes X No Federal Awards D. Internal control over major programs:  Material weakness(es) identified? Yes X No  Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported E. Type of auditors’ report issued on compliance for major programs: Unmodified F. Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes X None reported G. Identification of major programs: Name of Federal Program CFDA Number Highway Planning and Construction 20.205 FEMA Disaster Assistance 97.036 H. Dollar threshold used to distinguish between Type A and Type B programs: $300,000 I. Auditee qualified as a low-risk auditee Yes X No 8 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 198 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended December 31, 2013 SECTION II – FINANCIAL STATEMENT FINDINGS 2013-1 Prior Period Adjustment Criteria: Audit standards specify that restatement of previously issued financial statements be considered a deficiency in internal control if the misstatement is not detected in a timely manner. Condition: During 2013, City staff determined that revenue recognition relating to antenna lease revenue had not been properly applied. The 2013 financial statements reflect a prior period adjustment for $240,232 to properly adjust revenue recognition. Cause: The City had not established procedures regarding revenue recognition of antenna lease revenue. Effect: A prior period adjustment was posted to correct. Recommendation: None. City staff have resolved this issue. Views of Responsible Officials and Corrective Action Plan: Upon realizing the revenue recognition challenge in early 2014, accounting staff met with key divisions, analyzed the situation, took corrective action, and put a plan in place for 2014 and beyond. With the Accounting Division now overseeing the process, revenues will be recorded in the proper period, escrows correctly established and closed out, thereby eliminating the possibility of future revenue recognition challenged in regard to lease antenna revenues. SECTION III – FEDERAL AWARD FINDINGS There are no federal award findings for 2013. SECTION IV – PRIOR YEAR FINDINGS No single audit was required in the prior year. 9 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 199 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. 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, 2013 and the related notes to the financial statements, and have issued our report thereon dated May 22, 2014. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minn. Stat. 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 Political Subdivisions. 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. HLB TAUTGES REDPATH, LTD. May 22, 2014 10 Special Study Session Meeting of June 2, 2014 (Item No. 1) Title: 2013 Financial Statements – Auditors Discussion and Review Page 200 Meeting: Special Study Session Meeting Date: June 2, 2014 Written Report: 2 EXECUTIVE SUMMARY TITLE: Update on Connect the Park! RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: Does the City Council have questions or concerns regarding the additional sidewalk segments being proposed for inclusion in the 2014 Connect the Park! Sidewalk Improvement Project 4014-2000. SUMMARY: On April 7, 2014 the City Council approved the 2014 Connect the Park! Sidewalk Improvement Project 4014-2000. At the time of the public hearing a petition was submitted to the City for completing various gaps in the sidewalk on Inglewood Avenue, Huntington Avenue, and Glenhurst Avenue north of 39th Street. These missing segments would connect in to the recently approved 39th Street sidewalk increasing the local network of sidewalks in the Minnikahda Vista neighborhood. Council directed staff to review the feasibility of the petition and to construct these segments in 2014. Staff has reviewed the feasibility of these segments and will be including the construction of the missing segments on Inglewood Avenue and Huntington Avenue in to the construction plans for the 2014 Connect the Park! Sidewalk Improvement Project. Staff is not recommending sidewalk on Glenhurst Avenue due to design constraints and resident opposition. Please see the “Discussion” section of the report for additional information on street segments, costs and proposed project schedule. FINANCIAL OR BUDGET CONSIDERATION: The addition of the proposed sidewalk segments north of 39th Street are estimated to cost $75,000. This would bring the total estimated construction costs for the 2014 Connect the Park! Project to $1,162,900. The anticipated funding for these improvements is from the issuance of General Obligation bonds. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Resident Gap Letter Sidewalk Gap Graphic Prepared by: Jack Sullivan, Senior Engineering Project Manager Reviewed by: Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager Special Study Session Meeting of June 2, 2014 (Item No. 2) Page 2 Title: Update Connect the Park! DISCUSSION BACKGROUND: At the time of the public hearing on April 7 a petition was submitted to the City for completing various gaps in the sidewalk on Inglewood Avenue, Huntington Avenue and Glenhurst Avenue north of 39th Street. Please see the attached staff correspondence letter and sidewalk graphic for segments north of 39th Street. All proposed sidewalks would be constructed at no cost to the property owners and the City would be responsible for future repairs to defective sidewalk panels. These sidewalk segments are designated as “residential sidewalks” which means the property owner is responsible for clearing the sidewalk of debris such as branches and snow removal in accordance with applicable City ordinances. Staff is proposing a five foot concrete sidewalk with a five foot grass boulevard to match the other sidewalks on the street. Staff has evaluated the gap segments and has the following recommendations: Inglewood Avenue There are 5 independent segments of missing sidewalk on the east side of the 3600, 3700 and 3800 block of Inglewood Avenue totaling 440 feet. There is limited impact to boulevard landscaping. The one tree proposed to be removed is at 3755 Inglewood and staff has discussed this with the property owner and they are agreeable to the tree removal. Cost The estimated cost for these segments is $50,000 for 440 feet of sidewalk. Recommendation Staff believes these sections are feasible and they are supported by 4 of the 8 impacted parcels. Huntington Avenue There is one segment of missing sidewalk on the east side of the street in front of 3835 and 3874 Huntington Avenue totaling 200 feet. There is no impact to boulevard vegetation. Cost The estimated cost for these segments is $25,000 for 200 feet of sidewalk. Recommendation Staff believes this section is feasible and they are supported by 1 of the 2 impacted parcels. Special Study Session Meeting of June 2, 2014 (Item No. 2) Page 3 Title: Update Connect the Park! Glenhurst Avenue East Side - There is a segment of missing sidewalk on the east side of the street from 3819 to 3843 Glenhurst Avenue totaling 360 feet. This segment of sidewalk is not feasible to construct due to the steep driveway grade at 3887 Glenhurst Avenue. Staff has looked at various design options and has met with the property owner to discuss the site challenges. The driveway grade today is extremely steep (17%) and would increase to 25% with construction of sidewalk. The proposed grades will be too steep to traverse during the winter months and difficult for cars during the summer. Staff was unable to connect with three of the five property owners. Only 1 of the 5 impacted property owners is in favor of the project. West Side - There is a segment of missing sidewalk on the west side of the street from 3830 to 3842 Glenhurst Avenue totaling 230 feet. This segment of sidewalk would require substantial retaining walls and temporary easements to construct due to the steep grades of the boulevards. It is feasible to construct this segment of sidewalk; however there are much higher costs and there is substantial resident opposition. None of the three impacted property owners are in favor of this segment. Cost The estimated cost for this segment is $50,000 for 230 feet of sidewalk. Recommendation Staff believes construction of a sidewalk on the west side in this section is feasible however the construction will require temporary easements. Due to the substantial resident opposition staff is not recommending constructing this sidewalk at this time. Project Schedule Staff will include the Inglewood Avenue and Huntington Avenue sidewalk segments into the larger 2014 Connect the Park! Sidewalk Project for bidding and construction. The overall schedule for the 2014 project has been pushed back a few weeks to accommodate these segments and to allow for staff to secure the necessary construction easements on the other sidewalks approved in April. The following is the revised schedule for all the proposed 2014 Connect the Park! sidewalk construction. • June 24, 2014 – Bids due to the City of St. Louis Park • July 7, 214 – Council awards construction contract • July 14, 2014 – Construction begins • Early October – Construction is complete 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2290 Phone: 952/924-2500 Fax: 952-924-2663 Hearing Impaired: 952-924-2518 Website: www.stlouispark.org May 8, 2014 3835 Huntington Ave S St. Louis Park, MN 55416 2014 Connect the Park! Sidewalk Improvements Project Side Street ‘Gaps’ on Inglewood Ave, Huntington Ave, and Glenhurst Ave Dear Property Owner: The City of St. Louis Park Engineering Department sent you a letter on April 10, 2014 to notify you that the City Council had directed the Engineering Department staff to review the feasibility of constructing sidewalks in areas where current gaps in the existing sidewalks exist on Inglewood Avenue, Huntington Avenue, and Glenhurst Avenue. These locations are shown in the attached site location graphic. Since sending the original letter the City has completed a preliminary design of the sidewalk in front of your house and the impacts of that preliminary design are shown on the attached proposed improvements exhibit. The Engineering Department is going to report the feasibility of constructing these sidewalk gap segments to the City Council at the Tuesday, May 27 City Council Study Session. The Engineering Department staff will recommend moving forward with all sections that are feasible and strongly encourages you to reply to this letter by phone, email, or letter prior to Monday, May 19 so that your input can be documented and passed along to the City Council for consideration. If you would like us to have a site- specific meeting with you at your property to discuss the proposed impacts, which is recommended, please contact Kyle Johnson or Jack Sullivan using the contact information listed below to arrange the site meeting. The City Council will not be holding a public hearing for these sidewalk gap segments, which is why we are strongly encouraging you to contact the Engineering Department staff to provide your input. Some additional information regarding the proposed sidewalk is listed below: • The City would construct the sidewalk at no cost to the property owner and the City would be responsible for future repairs of defective panels. • This portion of sidewalk is designated as a ‘Residential Sidewalk’, which means that the property owner is responsible for keeping the sidewalk clear of debris, branches, snow, and other obstructions in accordance with applicable City ordinances. Special Study Session Meeting of June 2, 2014 (Item No. 2) Title: Update Connect the Park!Page 4 Special Study Session Meeting of June 2, 2014 (Item No. 2) Title: Update Connect the Park!Page 5 !!!!!!!!38TH 39TH 37TH JOPPAFRANCEGLENHURSTINGLEWOODHUNTINGTON36 1/2 EXCELSIOREXCELSIOR3901 4201 3800430142453654 3835 3847 3744 3 9 0 540013710 3720 3754 3744 3726 3716 3644 3836 3824 3818 3800 3812 3806 3830 3842 3831 3809 3825 3801 3837 3843 3819 3815 3750 3744 37003701 3707 3700 3903 3715 3736 402140154009381138113811 3800 3804 3810 3801 3814 3805 3820 3824 3815 3830 3821 3834 3825 3840 3831 3701 3716 3736 3841 3841 3815 3835 3840 3831 3821 3801 3810 3825 38343835 3831 3820 3824 3814 3821 3805 3815 3805 3830 3801 3800 3825 3804 3844 3901 3845 3844 3900 3845 3808 3810 3905 3751 3906 3706 3755 3745 3741 3735 3731 3725 3712 3844 3707 3721 3713 3754 3750 3740 3734 3730 3730 3724 3720 3711 3619 3700370137003703 38003755 3754 3751 3750 3747 3755 3746 3741 3754 3640 3751 3740 3737 3747 3736 3731 3741 3730 3644 3727 3737 3721 3726 3731 3720 3715 3730 3727 3650 3716 3721 3712 3709 3626 3717 3706 3713 3654 3712 3707 3668 3662 3661 3704 3658 3655 3652 3660 3650 3648 3824 3838 3814 3818 3828 3834 3651 3645 3641 367536413632 3637 3671 3631 3625 3665 3661 3655 3755 3749 3745 3741 3735 3731 37253724 3638 4 3 2 14300 4221 3910 3730 3734 3740 3744 3750 3754 3808 3812 3816 3820 3824 3828 3832 3836 3840 3844 3900 3904 36353634365136153642 3908 Minikahda Vista Park Residential Summary for 39th St. Gap Sections 200 Feet Ë Legend Approved Sidewalks Recommended Sidewalks Not Recommended Sidewalks Current Sidewalks City Limits Response Supportive of Improvements Not Supportive of Improvements Unable to Establish Contact Signed Original Petition (3/17/14) Document Path: O:\Pubwks\Projects\Current or Future\4014-2000 Sidewalk - Trail - Bikeway Construction 2014\Photos - Drawings\GIS\Residential Summary for 39th St Gap Sections.mxd Date: 5/28/14 Author: Luke Ingram Special Study Session Meeting of June 2, 2014 (Item No. 2) Title: Update Connect the Park!Page 6 Meeting: Economic Development Authority Meeting Date: June 2, 2014 Minutes: 3a UNOFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA MAY 5, 2014 1. Call to Order President Mavity called the meeting to order at 7:20 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Jeff Jacobs, Gregg Lindberg, and Jake Spano. Commissioners absent: Susan Sanger. Staff present: Executive Director (Mr. Harmening), Director of Community Development (Mr. Locke), Economic Development Coordinator (Mr. Hunt), and Recording Secretary (Ms. Hughes). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes April 7, 2014 The minutes were approved as presented. 4. Approval of Agenda The agenda was approved as presented. 5. Reports 5a. Approval of EDA Disbursements It was moved by Commissioner Jacobs, seconded by Commissioner Spano, to accept for filing EDA Disbursement Claims for the period March 29 through April 25, 2014. The motion passed 6-0 (Commissioner Sanger absent). 6. Old Business - None 7. New Business 7a. Authorization to Submit Cleanup Grant Application Related to the Former Nestlé (Novartis) Plant. EDA Resolution No. 14-02. Mr. Hunt presented the staff report and explained that Hillcrest Development is acquiring the former Nestlé site and intends to convert the plant into a multi-tenant industrial Economic Development Authority Meeting of June 2, 2014 (Item No. 3a) Page 2 Title: Economic Development Authority Meeting Minutes of May 5, 2014 facility featuring large renovated spaces. He advised that during the due diligence process Hillcrest found asbestos in the plant and has requested that the EDA apply for a Met Council Tax Base Revitalization Account (TBRA) cleanup grant on its behalf in order to offset the cost of abatement in the amount of $365,733. He stated that renovation work is scheduled for July and August with final build-out of tenant space shortly thereafter. Occupancy is expected to occur in the fall. He stated that renovation of the facility will create approximately 85 temporary construction jobs and upon full occupancy the building is projected to host as many as 200 fulltime positions. He noted there is no local matching fund requirement associated with the grant application and no funds are being requested of the EDA. He then introduced Mr. Charlie Nestor with Hillcrest Development. Commissioner Spano asked if the TBRA cleanup grant is a competitive grant program and the likelihood of receiving the grant. He also asked about Hillcrest’s plans if they do not receive the grant funds. Mr. Hunt stated that the TBRA is a competitive grant program and the likelihood of receiving the grant depends on the other projects competing for dollars. He stated that given the industrial nature of this project, the application should be favorably received. Mr. Charlie Nestor approached the EDA and stated he believed the Met Council would look favorably on the grant application because of job creation as well as the location of the site in the suburbs and being near transport corridors. He stated if they do not receive the grant, Hillcrest prefers to remediate if possible and would look at different methods of abatement such as encapsulation, but this would have to be done on an annual basis. It was moved by Commissioner Brausen, seconded by Commissioner Lindberg, to adopt EDA Resolution No. 14-02 Authorizing Application for the Metropolitan Council Tax Base Revitalization Account on behalf of Hillcrest. The motion passed 6-0 (Commissioner Sanger absent). 8. Communications - None 9. Adjournment The meeting adjourned at 7:26 p.m. ______________________________________ ______________________________________ Secretary President Meeting: City Council Meeting Date: June 2, 2014 EDA Agenda Item: 5a EXECUTIVE SUMMARY TITLE: Approval of EDA Disbursements RECOMMENDED ACTION: Motion to accept for filing EDA Disbursement Claims for the period of April 26 through May 23, 2014. POLICY CONSIDERATION: Does the EDA desire to approve EDA disbursements in accordance with Article V – Administration of Finances, of the EDA Bylaws? SUMMARY: The Accounting Division prepares this report on a monthly basis for the EDA to review and approve. The attached reports show both EDA disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. FINANCIAL OR BUDGET CONSIDERATION: Review and approval of the information follows the EDA’s Bylaws and provides another layer of oversight to further ensure fiscal stewardship. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: EDA Disbursements Prepared by: Connie Neubeck, Account Clerk Reviewed by: Brian A. Swanson, Controller 5/27/2014CITY OF ST LOUIS PARK 6:35:03R55CKS2 LOGIS400 1Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 928.00CAMPBELL KNUTSON PROF ASSOC DEVELOPMENT - EDA G&A LEGAL SERVICES 928.00 365.00CITIZENS INDEPENDENT BANK DEVELOPMENT - EDA G&A TRAINING 365.00 102.50EHLERS & ASSOCIATES INC WEST END TIF DIST G&A OTHER CONTRACTUAL SERVICES 102.50ELLIPSE ON EXC TIF DIST G&A OTHER CONTRACTUAL SERVICES 102.50HSTI G&A OTHER CONTRACTUAL SERVICES 102.50VICTORIA PONDS G&A OTHER CONTRACTUAL SERVICES 102.50PARK CENTER HOUSING G&A OTHER CONTRACTUAL SERVICES 102.50CSM TIF DIST G&A OTHER CONTRACTUAL SERVICES 102.50MILL CITY G&A OTHER CONTRACTUAL SERVICES 102.50PARK COMMONS G&A OTHER CONTRACTUAL SERVICES 102.50EDGEWOOD TIF DIST G & A OTHER CONTRACTUAL SERVICES 102.50ELMWOOD VILLAGE G & A OTHER CONTRACTUAL SERVICES 102.50WOLFE LAKE COMMERCIAL TIF G&A OTHER CONTRACTUAL SERVICES 102.50AQUILA COMMONS G & A OTHER CONTRACTUAL SERVICES 102.50HWY 7 BUSINESS CENTER G & A OTHER CONTRACTUAL SERVICES 102.50HARD COAT G & A OTHER CONTRACTUAL SERVICES 1,435.00 5,000.00FRANZEN LAW & POLICY GROUP LLC HRA LEVY G&A LEGAL SERVICES 5,000.00 400.00GREATER MSP DEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPS 400.00 62,793.72HENNEPIN COUNTY TREASURER 4601 HWY 7 PROP ACQUISITION PROPERTY TAXES 62,793.72 126.00KENNEDY & GRAVEN WEST END TIF DIST G&A LEGAL SERVICES 126.00 225.00MNCAR EXCHANGE DEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPS 225.00 196.04NEXTEL COMMUNICATIONS DEVELOPMENT - EDA G&A TELEPHONE 196.04 9.39OFFICE DEPOT DEVELOPMENT - EDA G&A OFFICE SUPPLIES EDA Meeting of June 2, 2014 (Item No. 5a) Title: Approval of EDA Disbursements Page 2 5/27/2014CITY OF ST LOUIS PARK 6:35:03R55CKS2 LOGIS400 2Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 9.39 890.32SEHDEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 890.32 54,447.98ST LOUIS PARK CONV & VISITORS BUREAU CONVENTION & VISITORS BUREAU COST REIMBURSEMENT-CVB 54,447.98 74.06XCEL ENERGY 4601 HWY 7 PROP ACQUISITION HEATING GAS 74.06 Report Totals 126,890.51 EDA Meeting of June 2, 2014 (Item No. 5a) Title: Approval of EDA Disbursements Page 3 Meeting: City Council Meeting Date: June 2, 2014 Presentation: 2a EXECUTIVE SUMMARY TITLE: Presentation Accepting Monetary Donation from Loop Minnesota and Hearing Loss Association of America ($1,000 each) RECOMMENDED ACTION: Brian Hoffman, Director of Inspections, will be present to accept a donation of $1,000 each. Ross Hammond, representing Loop Minnesota will be in attendance to present the checks for the installation of a Hearing Induction Loop in the Council Chambers. The donations will be officially accepted by the City Council as a consent item following the presentation. POLICY CONSIDERATION: Does the City Council wish to accept the gift with restrictions on its use? SUMMARY: State statute requires City Council’s acceptance of donations. This requirement is necessary in order to make sure the City Council has knowledge of any restrictions placed on the use of each donation prior to it being expended. Loop Minnesota and Hearing Loss Association of America is graciously donating an amount of $1,000 each. The donation will be used specifically to partially offset the cost of the installation of the hearing induction loops in the Council Chambers. FINANCIAL OR BUDGET CONSIDERATION: The donations will be used toward the cost of installation of the hearing induction loop system. Total cost of this project is $5,000 from 2014 Facilities Maintenance operating budget. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: None Prepared by: Ann Boettcher, Inspection Services Manager Reviewed by: Brian Hoffman, Director of Inspections Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: June 2, 2014 Presentation: 2b EXECUTIVE SUMMARY TITLE: Beyond The Yellow Ribbon Coalition Update RECOMMENDED ACTION: No action needed. Heather Shue, St. Louis Park Volunteer Liaison, will present an update on Coalition activities. POLICY CONSIDERATION: None at this time. SUMMARY: Beyond the Yellow Ribbon is a statewide program started by the Minnesota National Guard to establish, sustain and create awareness of a comprehensive support network that connects and coordinates agencies, organizations and resources to meet the needs of service members, military families and employers in Minnesota. The cities of St Louis Park, Minnetonka, Hopkins, and Edina have formed the Southwest Twin Cities Beyond The Yellow Ribbon Coalition which works to connect service members and their families with community services. Council adopted Resolution No. 12-098 in support of the Coalition in July, 2012. Heather Shue, our City’s volunteer liaison to the Southwest Twin Cities Beyond the Yellow Ribbon Coalition, attends meetings and executes action items on behalf of City staff. She communicates updates and support needs to our Volunteer Coordinator, Laura Smith. Heather will present an update to Council on Coalition activities. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: None Prepared by: Laura Smith, Volunteer Coordinator Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: June 2, 2014 Presentation: 2c EXECUTIVE SUMMARY TITLE: Retirement Recognition Resolution for Assistant Fire Chief Mark Windschitl RECOMMENDED ACTION: The Mayor is asked to read the resolution and present plaque to Mark Windschitl for 27 years of service to the City of St. Louis Park. POLICY CONSIDERATION: None at this time. SUMMARY: City p olicy states that employees who retire or resign in good standing with over 20 years of service will be presented with a plaque and resolution from the Mayor, City Manager and City Council. Assistant Chief Mark Windschitl will be in attendance for the presentation at the beginning of the meeting. The Mayor is asked to read the resolution and present Mark with a plaque in recognition of his years of service to the City. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Resolution Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of June 2, 2014 (Item No. 2c) Page 2 Title: Retirement Recognition Resolution for Assistant Fire Chief Mark Windschitl RESOLUTION NO. 14-___ RESOLUTION OF THE CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA, RECOGNIZING THE CONTRIBUTIONS OF AND EXPRESSING APPRECIATION TO ASSISTANT FIRE CHIEF MARK WINDSCHITL WHEREAS, Assistant Chief Windschitl began his employment with the City of St. Louis Park almost 27 years ago on August 16, 1987; and WHEREAS, Assistant Chief Windschitl has worked his way from Firefighter to Interim Chief by virtue of his strong commitment to the fire department, willingness to do whatever it takes to get the job done, his boundless energy, sense of humor, and belief in teamwork; and WHEREAS, Assistant Chief Windschitl has traveled long distances as a representative of the SLP FD to volunteer countless hours to local, regional, and national incidents; and WHEREAS, Assistant Chief Windschitl modeled excellence as an employee and was awarded the Spirit of St. Louis Park Award in 2007; and WHEREAS, Assistant Chief Windschitl’s passion to serve motivated him to serve others through multiple terms as the Mayor of Chaska; and WHEREAS, Assistant Chief Windschitl worked tirelessly to supervise the successful completion of the construction of two new fire stations in St. Louis Park; and WHEREAS, Assistant Chief Windschitl played an active role in bringing honor to the fallen St. Louis Park Firefighters by supporting the construction of the Fallen Firefighter Memorial in St. Paul; and WHEREAS, Assistant Chief Windschitl served on the board and as past President of the Hennepin County Fire Chiefs Association and the Southwest Joint Operations Association; and also was part of the Southwest Mutual Aid Association and Minnesota State Chiefs Association; and WHEREAS, Assistant Chief Windschitl will now finally spend his retirement years traveling and spending time with his fiancée, Connie, his children and grandchildren, and of course, riding his beloved Harley Davidson motorcycle; NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota, by this resolution and public record, would like to thank Assistant Fire Chief Mark Windschitl for his great contributions and nearly 27 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for Administration: Adopted by the City Council June 2, 2014 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: June 2, 2014 Presentation: 2d EXECUTIVE SUMMARY TITLE: 2013 Financial Statements – Auditors Presentation RECOMMENDED ACTION: No action required. The City Council is asked to provide any comments or questions it might have regarding the Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, and the Report on Compliance and Internal Controls for the year ended December 31, 2013. POLICY CONSIDERATION: • Is the City Council comfortable with the information contained in the Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, Report on Compliance and Internal Controls for the year ended December 31, 2013 to allow for effective decision making? • Would the Council desire to have any follow-up discussion on the Audit? SUMMARY: The City of St. Louis Park is required to have an independent audit performed annually. The auditors work for the City Council, not the City management team. For the presentation, David J. Mol – Partner from HLB Tautges Redpath, Ltd. will discuss the information and key financial points with the City Council. The City received a clean audit opinion, or “unmodified opinion”, which means that HLB Tautges Redpath, Ltd. believe the financial statements, as presented by city staff, fairly represents the City’s financial condition as of December 31, 2013. Staff has submitted the CAFR 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 30 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in strong financial condition. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: 1) 2013 - Comprehensive Annual Financial Report* 2) 2013 – Communication for Charged with Governance* 3) 2013 - Reports on Compliance and Internal Controls* *See Special Study Session Report for Attachments. Prepared by: Brian A. Swanson, Controller Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: June 2, 2014 Minutes: 3a UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA MAY 12, 2014 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg, Susan Sanger, and Jake Spano. Councilmembers absent: Anne Mavity. Staff present: City Manager (Mr. Harmening), Director of Community Development (Mr. Locke), Director of Engineering (Ms. Heiser), Senior Engineering Project Manager (Mr. Sullivan), Planning/Zoning Supervisor (Ms. McMonigal), and Recording Secretary (Ms. Hughes). Guest: April Crockett (MnDOT Project Engineer). 1. Future Study Session Agenda Planning – May 27, 2014 Mr. Harmening presented the proposed study session agenda for May 27th. 2. Update on Trunk Highway 100 Construction Project Mr. Sullivan presented the staff report and introduced April Crockett, MnDOT Project Engineer. He distributed maps depicting the five stages of the construction project along with public outreach information prepared by MnDOT. He advised that staff will be involved in weekly construction meetings with MnDOT and will provide ongoing updates to Council as the project progresses through the staging shifts. Ms. Crockett advised that the letting of bids is scheduled for May 16th and MnDOT hopes to award the bids eight to ten weeks after the letting with construction anticipated to begin in August. She stated that MnDOT has met with the Sorensen neighborhood and will be meeting with the Birchwood neighborhood next week; in addition, MnDOT has met with area Chambers of Commerce, local businesses and schools, and emergency services providers. She stated the MnDOT website contains construction maps to help people understand the staging of the project and MnDOT will continue to update these maps to help drivers reach local businesses and maneuver through the staging impacts, adding that visitors to the website can sign up to receive email updates on the project. She stated MnDOT will also have construction information in the local media and City newsletter and suggested providing information about the project at upcoming City events. She advised that MnDOT has had several meetings with Metro Transit to discuss bus routes during the project and callers to MnDOT are being encouraged to contact Metro Transit with questions regarding changes to bus routes. She stated that Ms. Bobbie Dahlke is the Public Affairs Coordinator for the project and Mr. Steve Barrett is the Resident Engineer overseeing construction of the project and contact information for Ms. Dahlke and Mr. Barrett is on the MnDOT website. City Council Meeting of June 2, 2014 (Item No. 3a) Page 2 Title: Study Session Minutes of May 12, 2014 Councilmember Spano encouraged MnDOT to work with Discover SLP on public outreach and stated that Discover SLP would be a valuable resource for assistance in providing communications to the community. Councilmember Sanger stated the Children First ice cream social would provide an opportunity for public outreach and is scheduled for Sunday, May 18th. Councilmember Brausen stated that MnDOT could have its own booth at the Parktacular event. Councilmember Sanger requested further information about what MnDOT is doing to manage the detour traffic on local streets. Mr. Sullivan stated that MnDOT has been working with the City on this issue and the City will also hold internal meetings with the County and Police Department on the best way to manage detour traffic on local streets. Councilmember Sanger stated she received an inquiry from residents asking MnDOT what it will be doing to control dust and dirt from construction. Ms. Crockett stated that all projects include dust control and if water trucks need to go out to the project MnDOT can take care of that. Councilmember Sanger requested that MnDOT include mention of this in the public outreach materials. She also asked when the Holiday site would be demolished. Ms. Crockett stated that the contractor will use the Holiday site as a staging area and MnDOT is currently finishing the environmental testing on the site and demolition will occur possibly in August. She advised that the Minnetonka Boulevard bridge will be removed in April 2015 and bridge access will be closed until approximately October 2015 followed by the Highway 7 closure in late fall 2015. She pointed out that both the Minnetonka Boulevard bridge and Highway 7 bridge will not be closed at the same time. Mayor Jacobs thanked Ms. Crockett for the update. Ms. Crockett encouraged residents to contact her with any questions. 3. Southwest LRT Preliminary Design Plans – Continued Discussion Mr. Locke presented the staff report and reported that staff has had continued discussions with SPO staff regarding the City’s comments and concerns, adding that Mr. Alexander emphasized that while municipal consent is an important public step, it was important to remember that the municipal consent action is taking place before the 30% design phase is completed. He stated the SPO emphasized the fact that there would be a continuum of decisions being made during each design phase and it was important to recognize that the design plans the City has been given were officially approved by the Met Council as municipal consent plans and the SPO is not going to be making official changes to those plans prior to municipal consent even though the SPO is continuing to work on those plans to get to the 30% design phase level. He stated that any Locally Requested Capital Investments (LCRI) that the City would like in the project will likely be included at this point. If they are not paid for by the project, they would need to be City Council Meeting of June 2, 2014 (Item No. 3a) Page 3 Title: Study Session Minutes of May 12, 2014 funded by some outside source. The SPO has indicated it is comfortable including those items in the plan. He stated the grade separation of the trail at Beltline and Wooddale, and the extension of Xenwood under the corridor could be included as LCRI’s, with the idea that if funds are available, they would be paid for by the project. Otherwise, they would need to be paid for from some other source. He explained that decisions about whether Locally Requested Capital Investments will be funded from excess SWLRT project money would be made by a Change Control Board made up of funding partners and Met Council transit operations staff. They will evaluate change orders and make decisions about how to use excess funds. Ms. McMonigal stated that the SPO indicated the City could include language in its municipal consent resolution that states the City and SPO have agreed that the trail will be separated and included as a Locally Requested Capital Investment; however, it does not bind the SPO to provide it. Mr. Harmening referenced the recent letter from the City Attorney advising that conditional municipal consent can be considered a denial of municipal consent. He stated that a meeting has been scheduled on May 20th with the Met Council’s General Counsel and the City Attorneys from St. Louis Park, Hopkins, Minnetonka, and Eden Prairie to discuss the municipal consent resolution and further information will be provided to Council following the meeting. Councilmember Spano asked if Minneapolis was invited to the May 20th meeting. Mr. Harmening replied that an invitation was not extended to Minneapolis for this meeting. Councilmember Spano stated he was a little concerned that Minneapolis has its own process in place for dealing with Southwest LRT issues and felt it would be beneficial to have Minneapolis attend the same briefings as the rest of the cities. Mr. Locke stated that Met Council staff have been working to identify potential deal breakers and it would be desirable for Met Council if the communities all followed a similar approach in working out these issues. He indicated there is no question that the grade separated trail crossing and extension of Xenwood can be included in the plans if the City says they are funded as Locally Requested Capital Investments. He stated the SPO wants to pursue the joint development at Beltline and staff needs to work with the SPO to memorialize that intent. Ms. Heiser reported that staff recently met with Hennepin County regarding CSAH 25 and the Lynn Avenue intersection and the County requested that the City take the lead on providing traffic numbers, adding that the County agreed with the pedestrian concerns raised by the City. Councilmember Sanger expressed concern that the underpass of Belt Line Boulevard under the rail/trail corridor was removed from the list of comments on the Municipal Consent plans. Mr. Locke explained that the grade separation of Beltline from the corridor and rail was further analyzed by the City’s traffic consultants and the conclusion was that trains do not cause the traffic problem but rather it is the intersection with CSAH 25 and Beltline that is really the issue. He added that the way people react to the existing at-grade trail crossing of Belt Line caused problems that would be solved by grade separating the trail from Belt Line. Grade separating Belt Line Blvd from the rail/trail corridor is a $20 million item and the SPO will not pay for it so it has not been included on the current list of changes. City Council Meeting of June 2, 2014 (Item No. 3a) Page 4 Title: Study Session Minutes of May 12, 2014 Councilmember Sanger stated she would like to see the consultant’s report, adding she did not think it made sense to grade separate the trail only and wanted to see grade separation of traffic at Beltline. Mr. Locke agreed to bring this issue back to Council for further discussion. Mr. Harmening stated that staff met with Three Rivers Park District last week to discuss the trail crossings at Beltline and Wooddale and to request that Three Rivers take the lead on the trail crossings and John Gonyou is going to meet with Hennepin County Commissioners McLaughlin and Callison to talk about the importance of having these crossings installed. Councilmember Hallfin stated that the grade separation at Beltline has to be done now during the project. Councilmember Sanger stated the project needs to include the trail crossings and grade separation at Beltline and she was prepared to have the City bear a portion of that cost. Councilmember Spano suggested that the City request a meeting with Chair Haigh. Councilmember Brausen indicated he would like to be part of that meeting if possible. Mr. Locke stated that the municipal consent public hearing is scheduled for May 19th and will be preceded by an open house with representatives from Met Council in attendance to do a presentation and answer questions prior to the City Council meeting. Communications/Meeting Check-In (Verbal) Mr. Harmening advised that staff would be contacting Council to schedule a bike ride in the near future. The meeting adjourned at 8:05 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting: City Council Meeting Date: June 2, 2014 Minutes: 3b UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA MAY 19, 2014 1. Call to Order Mayor Pro Tem Anne Mavity called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Pro Tem Anne Mavity, Tim Brausen, Steve Hallfin, Gregg Lindberg, Susan Sanger, and Jake Spano. Councilmembers absent: Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Fire Chief (Mr. Koering), Director of Community Development (Mr. Locke), Director of Operations and Recreation (Ms. Walsh), Director of Engineering (Ms. Heiser), Planning and Zoning Supervisor (Ms. McMonigal), Marketing & Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes). Guests: Mr. Victor Pechaty (Hammel, Green and Abrahamson) and Mr. Jim Alexander (Met Council Southwest LRT Project Office). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. SLP Parktacular Ambassador Introduction & Recap of Year Mayor Pro Tem Mavity introduced Ms. Marti Biegler from the St. Louis Park and Parktacular Ambassador Program. Ms. Biegler stated that last year, the ambassadors traveled all over Minnesota and western Wisconsin, and they received an award at the LaCrosse Oktoberfest and have received first place in the Hopkins Raspberry Festival parade for many years. She invited residents to attend this year’s Parktacular event on June 12-15. The ambassadors then introduced themselves. Mayor Pro Tem Mavity thanked the ambassadors for representing the community. 2b. Retirement Recognition Resolution for Firefighter Phil Robinson Mayor Pro Tem Mavity recited the resolution recognizing the contributions of and expressing appreciation to firefighter Phil Robinson and presented a plaque to Mr. Robinson in recognition of his years of service to the City. Mr. Robinson stated it has been a privilege and an honor to serve the community for 27 years and expressed appreciation for all the support given to the Fire Department by the City Council and citizens. Mr. Koering thanked Mr. Robinson for his many years of service. City Council Meeting of June 2, 2014 (Item No. 3b) Page 2 Title: City Council Meeting Minutes of May 19, 2014 3. Approval of Minutes 3a. Study Session Minutes April 28, 2014 The minutes were approved as presented. 3b. Special Study Session Minutes May 5, 2014 The minutes were approved as presented. 3c. City Council Meeting Minutes May 5, 2014 The minutes were approved as presented. 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. 4a. Designate Valley Paving Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $3,115,051.04 for the 2014 Local Street Rehabilitation Project (Area 2) - Project No. 2013-1000. 4b. Designate Valley Paving, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $683,050.21 for the 2014 MSA Street Rehab (Pennsylvania Avenue) Project - Project #2016-1100. 4c. Approve the Amendment to the Bassett Creek Watershed Management Commission Joint Powers Agreement. 4d. Adopt Resolution No. 14-067 to recognize Firefighter Phil Robinson for his 27 years of service to the City of St. Louis Park. 4e. Approve a three month extension for the Conditional Use Permit (CUP) and Variance for Auto Motion (Resolution No. 11-133-1) for renovations to the existing motor vehicle service station and construction of a new carwash. 4f. Adopt Resolution No. 14-068 authorizing the submission of a grant application to the Metropolitan Council Livable Communities Transit Oriented Development Program for pre-development activities for PLACE. 4g. Approve premises amendment to the on sale brewer’s Taproom liquor license for Steel Toe Brewing, LLC, located at 4848 35th Street West. 4h. Adopt Resolution No. 14-069 accepting the project report, establishing Improvement Project No. 4014-3000, approving plans and specifications and authorizing invitation for bids for Improvement Project No. 4014-3000. 4i. Adopt: • Resolution No. 14-070 approving the Cooperative Construction Agreement • Resolution No. 14-071 approving Trunk Highway 7 Detour Agreement • Resolution No. 14-071 approving Traffic Control Signal Agreement w/ MnDOT for reconstruction of Trunk Highway 100. City Council Meeting of June 2, 2014 (Item No. 3b) Page 3 Title: City Council Meeting Minutes of May 19, 2014 4j. Accept for filing Telecommunications Minutes December 11, 2013 4k. Accept for filing Environment and Sustainability Commission Minutes April 2, 2014 4l. Accept for filing Planning Commission Minutes April 23, 2014 It was moved by Councilmember Spano, seconded by Councilmember Hallfin, to approve the Agenda and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Mayor Jacobs absent). 5. Boards and Commissions - None 6. Public Hearings 6a. Public Hearing for Southwest LRT Municipal Consent Plans Mayor Pro Tem Mavity acknowledged and welcomed newly elected Hennepin County Commissioner Marion Greene and thanked her for attending tonight’s meeting. Ms. McMonigal presented the staff report and explained this public hearing is part of the official procedure required under the municipal consent process for Southwest LRT and all cities as well as Hennepin County and the Met Council are required to hold public hearings prior to taking action on the municipal consent plans. She stated that Council action on the municipal consent plans is required by July 14, 2014, and the purpose of tonight’s public hearing is to receive comments on the municipal consent plans. Action by Council will take place at a future meeting in late June or early July. She pointed out that the municipal consent plans are the subject of ongoing discussion among City staff and the Southwest LRT Project Office as well as the City Council. Those discussions include grade separating the regional trail, additional roadway configurations, and improving circulation around the station areas. She stated that additional comments may be submitted in writing or via email to nsells@stlouispark.org by June 2nd. She then introduced Mr. Jim Alexander, Director of Design and Engineering for Southwest LRT. Mr. Alexander thanked the City for holding the open house and public hearing and stated that St. Louis Park is the first city to hold its open house and public hearing as part of the municipal consent process. He presented a map of the Southwest LRT alignment and explained that Minn. Stat. Sec. 473.3994 governs local jurisdictional review and approval of the physical design component of the preliminary design plans and local jurisdiction options include approving the preliminary design plans or disapproving the plans with required changes. He stated that next steps in the municipal consent process include station design and public art, streetscape design, utility relocation design, and design advancement including light rail track features, roadway details, bridges and tunnels, and freight rail track features. He added that further information is available online at www.swlrt.org or via email at swlrt@metrotransit.org Mayor Pro Tem Mavity opened the public hearing. City Council Meeting of June 2, 2014 (Item No. 3b) Page 4 Title: City Council Meeting Minutes of May 19, 2014 Mr. Brian Zachek, 6108 Minnetonka Boulevard, expressed support for light rail and asked Council to deny m unicipal consent unless the freight rail reroute issue is taken off the table for good in order to give residents peace of mind and to move forward with Southwest LRT in the most beneficial way for St. Louis Park. Mr. Dan Salmon, 3106 Inglewood Avenue South, stated he owns the building located near the Beltline station and all the apartments in that area are currently able to cross over the existing tracks onto the trail. He stated it was his understanding that fencing will be installed in this area requiring people to travel more than one-third of a mile to access the trails and asked Council to consider safe access to the trail from this neighborhood either through back trails or via the frontage road along Highway 7. Ms. Sara Bergen, 2939 Princeton, thanked Councilmember Spano for his work on the CMC and representing St. Louis Park. She encouraged Council to approve municipal consent but to continue working with Met Council on grade separation at Beltline, particularly with the proposed 500+ vehicle park and ride, which is going to increase traffic in this area especially if there is no grade separation. She encouraged residents to attend a meeting on May 20th at 6:00 p.m. regarding form-based code at the Beltline station. Ms. Diane Steen-Hinderlie, 2829 Yosemite, stated that Mr. T.D. Walker was a co- founder of St. Louis Park and a champion for arts and culture. She stated that Walker Street in the center of St. Louis Park is named after Mr. Walker and this area is the true downtown of St. Louis Park and includes several small businesses and indicated it would be nice to preserve this area. Mr. Joe LaPray, 3256 Blackstone Avenue, asked Council to give municipal consent for Southwest LRT and stated the region needs light rail and the region does not need any more confusion or acrimony regarding freight rail reroutes. He stated if there were a freight rail derailment in Kenilworth, Minneapolis would again raise the reroute issue. He stated the only reroute that works is the Brunswick Central option and this would put a wall up in the community. He felt that St. Louis Park needs a clear, strong resolution that none of the plans put forth will be acceptable for a reroute and he urged Council to vote to keep the ill conceived reroute plans buried deep. Ms. Deb McMillan, TwinWest Chamber of Commerce Director of Government Affairs, stated the TwinWest Chamber sent a letter last month to Met Council Chair Susan Haigh expressing support for Southwest LRT. She stated the benefits of Southwest LRT are extensive and provide a catalyst for economic growth and Twin West Chamber’s support has not wavered throughout the process. She asked Council to continue to support Southwest LRT by granting municipal consent, adding that the project’s impact is far- reaching and vital to the continued growth and competitiveness of the region. Ms. Kathryn Kottke, 2712 Brunswick Avenue, stated she has been a resident of St. Louis Park for 19 years and has been going to train meetings for more than four years. She stated she loves St. Louis Park and does not want to move but wondered if they are going to have to move because they cannot send their kids to a school with a train going through its campus. She stated she does not believe the community is safe from the possibility of a reroute until a demand is made that any reroute be removed from consideration and urged Council to take measures now to protect St. Louis Park from City Council Meeting of June 2, 2014 (Item No. 3b) Page 5 Title: City Council Meeting Minutes of May 19, 2014 these unsafe ideas that are serving to protect a few in the Kenilworth corridor and now is the time to act to deny municipal consent until a reroute is removed from this decision. Ms. Jami LaPray, 3256 Blackstone Avenue, stated that over the past four years many people believed that a freight rail reroute was either inevitable or a good idea. She stated the delays caused by the additional studies not only added to the project’s cost but has also caused many residents to lose trust and wonder if they can ever see an end to the relocation nightmare. She stated that Senator Latz was originally in favor of the reroute but voted against the bonding bill in order to make a statement and the Senator’s stand is a step forward in rebuilding trust, however, outside St. Louis Park this stubborn denial continues and adds to the concern that St. Louis Park residents may never be out from the threat of a reroute. She stated that Safety in the Park received an email from Mr. Frank Pafko referencing Minnesota Administrative Rule 4410.3100 (Prohibition on Final Governmental Decisions) and stated that Met Council may be rushing municipal consent in relation to the Supplemental DEIS and this could leave the door open to moving freight rail to St. Louis Park. She stated she recently learned the Kenilworth Preservation Society has decided to file a lawsuit and it appears there are ample grounds including the Administrative Rule mentioned earlier. She felt that despite this lawsuit she had no doubt that Southwest LRT will move forward but her concern is not about light rail or the reroute returning as a part of Southwest LRT, rather, her concern is about the possibility that the lawsuit is an attempt to get Hennepin County to live up to undocumented promises to get freight rail moved to St. Louis Park. She stated that residents should never again have to endure a PMT process, endless hearings, or having one area pitted against another. She encouraged Council to hear their frustration and urged Council to find a way to do whatever it takes to end the reroute nightmare forever. Mr. Thom Miller, 2900 Yosemite Avenue, thanked Council for its hard work on Southwest LRT and for listening to residents. He stated the issue of using the MN&S line for something it was not built for has been studied and all the reports indicated there was no reasonable way to safely reroute freight rail traffic onto the MN&S and urged Council to ask Met Council not to study rerouting at any time in the future. He referenced action taken in 2002 by the City of Edina that no further study could be done on the MN&S for passenger service. He felt this was the time to get ahead of the reroute issue, adding that as long as MN&S is on a map there will be some who will push to get freight rail rerouted, adding that Minneapolis is currently working on some language that freight rail should not be considered permanent and may be considered again in the future. He stated Senator Latz recently voted against the bonding bill and defended his vote by stating that he had a quarrel with the way Minneapolis has treated St. Louis Park during the course of the Southwest LRT routing matter. He asked Council to stand up for its residents by granting municipal consent with a clause prohibiting future discussion of the reroute. Mr. Larry Jones, 3000 Highway 100 South, urged Council to move ahead with municipal consent as proposed by the Met Council. He stated he does not want to see the region lose out on the Federal funding and felt the project needs to move ahead. He expressed concern about the size of the park and ride at Beltline and referenced a blog from the Daily Planet regarding park and ride facilities that speaks about vacant parking spaces along the Northstar commuter rail line. City Council Meeting of June 2, 2014 (Item No. 3b) Page 6 Title: City Council Meeting Minutes of May 19, 2014 Ms. Kay Drache, 3067 Zarthan, felt it was imperative that all parties acknowledge that relocation of freight rail will not be considered in the years to come and urged Council to insert a clause removing any rerouting before giving municipal consent. Ms. Renee Beltrand, 2805 Zarthan, agreed with the comments made by Mr. Tom Miller. Mr. Eric Hickstein, 2856 France Avenue, stated he is a freshman at the high school and the light rail would help him because he is planning to take college classes in Minneapolis and will not have a car to drive to Minneapolis. Mr. Phil Freshman, 3912 Natchez, agreed with Ms. Jami LaPray and Mr. Tom Miller and others who want to make sure municipal consent includes a strong proviso that residents do not have to go through the nightmare again with a freight rail reroute. Mayor Pro Tem Mavity closed the public hearing. Mr. Harmening explained that the municipal consent process ends as of July 14th and if a community does not take action by that date, the law assumes that a community has approved the municipal consent plans. He stated that Council will take action sometime in the middle of June or early July and pointed out that a specific date for municipal consent has not yet been determined because of the City’s desire to continue its conversations with Met Council. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Approve Community Center Project – Schematic Design Ms. Walsh presented the staff report and provided background on the City’s earlier visioning process that identified the need for a community gathering place and the establishment of a task force that presented findings and a recommendation to enter into a feasibility study for a community center. She explained that the schematic design phase would include soil and survey work as well as environmental testing and would include contracts with a number of different companies including a third party estimator. She then introduced Mr. Victor Pechaty from Hammel, Green and Abrahamson. Mr. Pechaty stated that the schematic design phase is intended to provide more detailed and accurate cost estimates for the project. He explained that since completion of the feasibility study, they have determined that the cost of a community center would be approximately $40 million for construction and approximately $10 million in soft costs and they propose to execute approximately 50% of the schematic design phase, which would include development of cost estimates for the preferred site and would be based on the market standard cost per square foot for this type of building. He pointed out that in order to achieve realistic cost estimates, they recommend producing a portion of the schematic design for the project which includes floor plans for the building, the three dimensional characteristics of the building, site plans as well as a preliminary engineering analysis. He stated that in order to complete the 50% schematic design plans they would use a team of architects and engineers with a portion of the work delegated to a consultant to produce cost estimates for the project. City Council Meeting of June 2, 2014 (Item No. 3b) Page 7 Title: City Council Meeting Minutes of May 19, 2014 Mr. Larry Jones, 3000 Highway 100 South, approached the City Council and stated he is not opposed to a community center and would support it but was concerned about the process. He indicated that the last time this item was before the public was in 2011 and felt that was a long time for the public not to know what is going on. He was also concerned about spending $400,000 from the Park Improvement Fund and suggested holding a public information meeting before proceeding to the schematic design phase. Councilmember Spano stated that Council has previously expressed concern about the total cost of a community center and felt that $400,000 was a lot of money to spend on a project that has not yet been approved, especially given the unknown costs associated with Southwest LRT. He asked if there was any way for Council to demonstrate to the community what they would get for their money that does not require spending $400,000. Mr. Pechaty stated that they are flexible in balancing the scope of work and cost associated with getting the City to the next step of a community center project. He indicated that the schematic design process as an overall percentage of the project is typically 15% of the overall effort and they have recommended 50% of that cost at this time. He stated their fee proposal was generated using industry standards for architect and engineering fees in the range of 6-8% of the total cost of construction or approximately $225,000 for their firm plus the specialty consultants for a maximum amount of $400,000, adding that this amount is intended to cover some of the unknown costs of exploring the soil contamination on the site. He stated the feasibility study did not test or account for the soils and it is their recommendation that any subsequent step in the process include a soil analysis of the site. He stated floor plans need to be done to inform the exterior look of the building and if the drawings are not substantiated by the floor plans, it compromises the accuracy of the costs associated with the project. Councilmember Sanger stated that the schematic design phase is needed and is part of Council’s plan to go out to the public with all that detailed information, including the cost estimates, and without this information, the City will not have accurate information from which residents can base their feedback on the cost elements. She added the City has received a great deal of public comment supporting the concept of a community center and the schematic design phase will provide more detailed information for the community in order to obtain their input. Councilmember Lindberg expressed support for moving forward with schematic design and felt the City has done a good job of engaging the public in this process. He agreed with Councilmember Sanger that this represents a necessary next step in the process in order to go back out to the public to see if they want a community center to be built. Councilmember Spano stated he was not ready to move forward with schematic design, not because he does not believe the project has merit or that it would be a great addition to the community, but his ongoing concern is that this project could be done anytime whereas the City cannot control the timing of the Southwest LRT project. He stated he was not ready to move forward with spending this money on schematic design because he was not willing to move forward at this time on a community center project. City Council Meeting of June 2, 2014 (Item No. 3b) Page 8 Title: City Council Meeting Minutes of May 19, 2014 Councilmember Sanger stated these are necessary steps even if Council later decides not to build a community center and it was her preference to go forward with schematic design and to have parallel ongoing discussions regarding additional expenses related to Southwest LRT. Councilmember Hallfin noted that Council decided to hold off on any decision on a community center because of the uncertainties related to Southwest LRT and unfortunately those uncertainties still exist. He stated he would like to again push off any decision on a community center until the City has more information about potential obligations related to Southwest LRT, including the possibility of grade separation at Beltline for the trails as well as vehicles. Councilmember Brausen spoke in favor of the schematic design phase and felt that a community center represented an essential community asset whether developed now or in the future. He stated that delaying this phase could cost the City a lot of money in increased interest rates and the only way to have an accurate picture of what is being proposed is to go forward with this preliminary work and then let the community decide. It was moved by Councilmember Sanger, seconded by Councilmember Lindberg, to direct staff to enter into contracts not to exceed $400,000 for the schematic design phase of a potential Community Center. Mayor Pro Tem Mavity expressed support for entering the schematic design phase and felt that Council needed this additional information to figure out whether a community center project is feasible, adding that she shares the concerns regarding costs associated with Southwest LRT. The motion passed 4-2 (Councilmembers Hallfin and Spano opposed; Mayor Jacobs absent). 9. Communications Mr. Harmening thanked residents for attending the Children First ice cream social on Sunday. He stated that the City hosted a slug fest over the weekend with approximately sixty teams in attendance. He thanked the City’s Parks and Recreation staff for all the great work they did in supporting the slug fest. He also reported on the tree climbing event at Oak Hill Park over the weekend. Mayor Pro Tem Mavity encouraged residents to attend the Beltline Station Planning Session on Tuesday, May 20th, from 6:00-8:00 p.m. at the Rec Center and stated this will be a visioning session on how to use form based codes at the Beltline Station. 10. Adjournment The meeting adjourned at 9:02 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Anne Mavity, Mayor Pro Tem Meeting: City Council Meeting Date: June 2, 2014 Consent Agenda Item: 4a EXECUTIVE SUMMARY TITLE: Retirement Recognition Resolution for Assistant Fire Chief Mark Windschitl RECOMMENDED ACTION: Motion to Adopt Resolution to recognize Assistant Fire Chief Mark Windschitl for his 27 years of service to the City of St. Louis Park. POLICY CONSIDERATION: None at this time. SUMMARY: City p olicy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the Mayor, City Manager and City Council. This consent item will officially adopt the resolution that honors Mark for his years of service. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Resolution Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of June 2, 2014 (Item No. 4a) Page 2 Title: Retirement Recognition Resolution for Assistant Fire Chief Mark Windschitl RESOLUTION NO. 14-___ RESOLUTION OF THE CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA, RECOGNIZING THE CONTRIBUTIONS OF AND EXPRESSING APPRECIATION TO ASSISTANT FIRE CHIEF MARK WINDSCHITL WHEREAS, Assistant Chief Windschitl began his employment with the City of St. Louis Park almost 27 years ago on August 16, 1987; and WHEREAS, Assistant Chief Windschitl has worked his way from Firefighter to Interim Chief by virtue of his strong commitment to the fire department, willingness to do whatever it takes to get the job done, his boundless energy, sense of humor, and belief in teamwork; and WHEREAS, Assistant Chief Windschitl has traveled long distances as a representative of the SLP FD to volunteer countless hours to local, regional, and national incidents; and WHEREAS, Assistant Chief Windschitl modeled excellence as an employee and was awarded the Spirit of St. Louis Park Award in 2007; and WHEREAS, Assistant Chief Windschitl’s passion to serve motivated him to serve others through multiple terms as the Mayor of Chaska; and WHEREAS, Assistant Chief Windschitl worked tirelessly to supervise the successful completion of the construction of two new fire stations in St. Louis Park; and WHEREAS, Assistant Chief Windschitl played an active role in bringing honor to the fallen St. Louis Park Firefighters by supporting the construction of the Fallen Firefighter Memorial in St. Paul; and WHEREAS, Assistant Chief Windschitl served on the board and as past President of the Hennepin County Fire Chiefs Association and the Southwest Joint Operations Association; and also was part of the Southwest Mutual Aid Association and Minnesota State Chiefs Association; and WHEREAS, Assistant Chief Windschitl will now finally spend his retirement years traveling and spending time with his fiancée, Connie, his children and grandchildren, and of course, riding his beloved Harley Davidson motorcycle; NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota, by this resolution and public record, would like to thank Assistant Fire Chief Mark Windschitl for his great contributions and nearly 27 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for Administration: Adopted by the City Council June 2, 2014 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: June 2, 2014 Consent Agenda Item: 4b EXECUTIVE SUMMARY TITLE: Temporary On-Sale Liquor License – Parktacular Inc. RECOMMENDED ACTION: Motion to Approve a Temporary On-Sale Intoxicating Liquor License for Parktacular Inc. for their Annual Parktacular Celebration Block Party to be held June 13, 2014, at the Town Green located at Excelsior and Grand, 3815 Grand Way in St Louis Park. POLICY CONSIDERATION: Does Council wish to approve the temporary on-sale intoxicating liquor license for the Annual Parktacular Inc. Celebration held at the Town Green located at Excelsior and Grand on June 13, 2014? BACKGROUND: The Parktacular 2014 Community Celebration will be held June 12 - June 15. Parktacular, Inc., 3700 Monterey Drive, has made an application for a temporary on sale liquor license for the Parktacular Block Party Event scheduled for Friday, June 13 at the Excelsior & Grand Town Green. Liquor in the form of wine and beer will be available during the hours of 6:00 p.m. - 11:00 p.m. The outdoor concert entertainment will be provided by R Factor who will perform from 6:30 p.m. to 11:00 p.m. Free parking is available in the Excelsior and Grand Ramps and The Rec Center parking lot. The Police Department has completed the background investigation on the main principals and has found no reason to deny the temporary license. The applicant has met all requirements for issuance of the license and staff is recommending approval. FINANCIAL OR BUDGET CONSIDERATION: The fee for a temporary liquor license is $100.00 per day of the event. VISION CONSIDERATION: The annual Parktacular Street Community Event supports the strategic direction of being a connected and engaged community by increasing use of existing gathering places. Attachments: Discussion Map Prepared by: Nate Rosa, Recreation Supervisor – Operations and Recreation Nancy Stroth, City Clerk Reviewed by: Cindy Walsh, Operations and Recreation Director Approved by: Tom Harmening, City Manager City Council Meeting of June 2, 2014 (Item No. 4b) Page 2 Title: Temporary On-Sale Liquor License – Parktacular Inc. DISCUSSION BACKGROUND: The 2014 Parktacular Event is an annual celebration with many sponsors and volunteers promoting a spirit of pride, a sense of community and an atmosphere of celebration for all residents of the City of St. Louis Park. Various sponsors and Discover St Louis Park have donated funds to Parktacular to sponsor the Block Party which includes entertainment, food, and beverages. Per State Statute 340A.404, Subd. 10, a temporary on-sale liquor license may provide that the licensee may contract for intoxicating liquor catering services with the holder of a full-year on- sale intoxicating liquor license issued by any municipality. Parktacular has contracted with Event Marketplace, a subsidiary of BB Burger Adventures, LLC dba B-52 Burgers and Brew in Inver Grove Heights who currently hold a State Intoxicating Liquor License. The alcohol will be provided at the event during the hours of 6:00 p.m. to 11:00 p.m. to anyone 21 years of age and older. Event Marketplace will be coordinating and providing staff required to check ID’s and wrist bands to ensure no alcohol will be sold to minors. Police officers will also be on duty at the event. Per City Code Section 3-33, no person shall possess open containers of alcoholic beverages or consume any alcohol beverages on public streets, public parking lots, or on private property generally open to the public unless possession or consumption is during a specific event on such property which is approved by the City. Attached is a map of the Excelsior and Grand Town Green showing the fenced off premises area for the Block Party where liquor will be allowed. The required certificate of liquor liability insurance to cover the event will be submitted to the Parktacular Board and the city Liaison. PRESENT CONSIDERATIONS: The Block Party Event is free this year and many volunteers will be monitoring crowd control along with a “dump bucket” at each entrance/exit. After the 11:00 p.m. closing time of the Block Party, the area will be cleaned. St. Louis Park Police Department has indicated there have been no incidences reported stemming from the previous block parties. NEXT STEPS: After City Council approval of Temporary Liquor License applications, the State application is submitted to the Alcohol Enforcement Division of the Minnesota Department of Public Safety for final approval. PARKTACULAR BLOCK PARTY JUNE 13th 2014 Alcohol permitted only in the fenced area Lion s C lub Food Sa le sEvent Ma rke tpa lce L iquo r Sa le s Stage City Council Meeting of June 2, 2014 (Item No. 4b) Title: Temporary On-Sale Liquor License – Parktacular Inc.Page 3 Meeting: City Council Meeting Date: June 2, 2014 Consent Agenda Item: 4c EXECUTIVE SUMMARY TITLE: Accept Monetary Donations from Loop Minnesota & Hearing Loss Association of America RECOMMENDED ACTION: Motion to Adopt Resolution approving acceptance of a monetary donation from Loop Minnesota and Hearing Loss Association of America in the amount of $1,000 each for the installation of a Hearing Induction Loop in the Council Chambers. POLICY CONSIDERATION: Does the City Council wish to accept the gift with restrictions on its use? SUMMARY: State statute requires City Council acceptance of donations. This requirement is necessary in order to make sure the City Council has knowledge of any restrictions placed on the use of each donation prior to it being expended. Loop Minnesota and Hearing Loss Association of America are graciously donating an amount of $1,000 each. The donations will be used specifically to partially offset the cost of the installation of the hearing induction loops in the Council Chambers. Installing an induction loop provides improved clarity of amplified vocals and presentations for hearing aid users when their device is equipped with a telecoil. A specialty amplifier connected to the PA powers a copper wire installed beneath the carpet around the perimeter of the room. This system improves accessibility of council and other public meetings held in the room to a greater portion of our residents. FINANCIAL OR BUDGET CONSIDERATION: The donations will be used toward the cost of installation of the hearing induction loop system. Total cost of this project is $5,000 from 2014 Facilities Maintenance operating budget. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Resolution Donation Letters Prepared by: Ann Boettcher, Inspection Services Manager Reviewed by: Brian Hoffman, Director of Inspections Approved by: Tom Harmening, City Manager City Council Meeting of June 2, 2014 (Item No. 4c) Page 2 Title: Accept Monetary Donations from Loop Minnesota & Hearing Loss Association of America RESOLUTION NO. 14-____ RESOLUTION APPROVING ACCEPTANCE OF DONATIONS IN THE AMOUNT OF $2,000 TO BE USED TOWARDS THE INSTALL$7ION OF A HEARING INDUCTION LOOP IN THE COUNCIL CHAMBERS WHEREAS, The City of St. Louis Park is required by State statute to authorize acceptance of any donations; and WHEREAS, Loop Minnesota and Hearing Loss Association of America donated $1,000 each towards the installation of a Hearing Induction Loop in the Council Chambers; and NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis Park that the gift is hereby accepted with thanks to Loop Minnesota and Hearing Loss Association of America with the understanding that it must be used to assist with the cost associated with the installation of a hearing induction loop in the Council Chambers. Reviewed for Administration: Adopted by the City Council June 2, 2014 City Manager Mayor Attest: City Clerk City Council Meeting of June 2, 2014 (Item No. 4c) Title: Accept Monetary Donations from Loop Minnesota & Hearing Loss Association of AmericaPage 3 City Council Meeting of June 2, 2014 (Item No. 4c) Title: Accept Monetary Donations from Loop Minnesota & Hearing Loss Association of AmericaPage 4 Meeting: City Council Meeting Date: June 2, 2014 Consent Agenda Item: 4d EXECUTIVE SUMMARY TITLE: Approval of City Disbursements RECOMMENDED ACTION: Motion to accept for filing City Disbursement Claims for the period of April 26 through May 23, 2014. POLICY CONSIDERATION: Does the City Council desire to approve City disbursements in accordance with Section 6.11 – Disbursements – How Made, of the City’s Charter? SUMMARY: The Accounting Division prepares this report on a monthly basis for the City Council to review and approve. The attached reports show both City disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. FINANCIAL OR BUDGET CONSIDERATION: Review and approval of the information follows the City’s Charter and provides another layer of oversight to further ensure fiscal stewardship. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: City Disbursements Prepared by: Connie Neubeck, Account Clerk Reviewed by: Brian A. Swanson, Controller 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 1Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 94.79A-1 OUTDOOR POWER INC GENERAL FUND BALANCE SHEET INVENTORY 84.83PARK MAINTENANCE G & A GENERAL SUPPLIES 760.33PARK MAINTENANCE G & A OTHER IMPROVEMENT SUPPLIES 433.28TREE MAINTENANCE OTHER IMPROVEMENT SUPPLIES 1,373.23 71.57ABELSON, SHARON HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 71.57 113.12ABERNATHY, LISA ORGANIZED REC G & A MILEAGE-PERSONAL CAR 113.12 384.46ABLE HOSE & RUBBER INC SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 30.80PARK MAINTENANCE G & A GENERAL SUPPLIES 415.26 450.00ACACIA ARCHITECTS LLC MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 450.00 377.00ACME TOOLS WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 457.98WATER UTILITY G&A OTHER 834.98 1,000.00ACOUSTICS ASSOCIATES INC PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 1,655.00REC CENTER BUILDING BUILDING MTCE SERVICE 2,655.00 379.21AIRGAS NORTH CENTRAL OPERATIONS OPERATIONAL SUPPLIES 379.21 2,393.22AKINS, DEAN GENERAL FUND BALANCE SHEET CLEARING ACCOUNT 2,393.22 200.00ALDERSGATE UNITED METHODIST CHURCH ADMINISTRATION G & A RENTAL BUILDINGS 200.00 585.00ALLIANCE MECH SRVCS INC FACILITIES MCTE G & A BUILDING MTCE SERVICE 585.00 238.69ALLIED PRODUCTS CORP REC CENTER BUILDING GENERAL SUPPLIES 238.69 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 2 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 2Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 1,487.80AMERICAN ENGINEERING TESTING INC PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 7,600.00STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 9,087.80 224.70AMERICAN FLAGPOLE & FLAG CO PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES 393.44BUILDING MAINTENANCE BUILDING MTCE SERVICE 618.14 146.24AMERICAN MESSAGING CELLPHONES, IPADS, ETC.TELEPHONE 146.24 140.22AMERICAN TIRE DISTRIBUTORS GENERAL FUND BALANCE SHEET INVENTORY 140.22 139.65AMERIMARK DIRECT SOLID WASTE G&A OPERATIONAL SUPPLIES 139.65 1,720.48ANDERSEN INC, EARL INSTALLATION OTHER IMPROVEMENT SUPPLIES 1,720.48 1,176.56APACHE GROUP OF MINNESOTA REC CENTER BUILDING GENERAL SUPPLIES 1,176.56 853.85ARAMARK UNIFORM SERVICES FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 173.84GENERAL CUSTODIAL DUTIES OTHER CONTRACTUAL SERVICES 63.05ENTERPRISE G & A GENERAL SUPPLIES 1,090.74 26.83ARCPRINTING/REPRO SERVICES EQUIPMENT MTCE SERVICE 26.83 9,667.55ART PARTNERS GROUP GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 9,667.55 154.86ASET SUPPLY AND PAPER INC REC CENTER BUILDING OPERATIONAL SUPPLIES 154.86 3,424.60ASPEN MILLS OPERATIONS OPERATIONAL SUPPLIES 3,424.60 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 3 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 3Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 374.72ATIR ELECTRIC CORPORATION FACILITIES MCTE G & A BUILDING MTCE SERVICE 374.72 64.83ATOMIC RECYCLING PUBLIC WORKS OPS G & A CLEANING/WASTE REMOVAL SERVICE 64.84SEWER UTILITY G&A CLEANING/WASTE REMOVAL SERVICE 403.83VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SERVICE 533.50 43.89AUTO PLUS GENERAL FUND BALANCE SHEET INVENTORY 43.89 6,712.08AUTOMATIC SYSTEMS INC WATER UTILITY G&A EQUIPMENT MTCE SERVICE 6,712.08 343.68AUTOMOBILE SERVICE GENERAL REPAIR EQUIPMENT MTCE SERVICE 343.68 470.00AUTOMOTIVE RESOURCES INC GENERAL REPAIR EQUIPMENT MTCE SERVICE 470.00 824.01BACHMANSMUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 352.88BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 1,176.89 1,554.99BADGER METER INC WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 1,554.99 9,400.00BADGER STATE INSPECTION LLC WATER UTILITY BALANCE SHEET GENERAL 9,400.00 4,521.00BAILEY NURSERIES INC TREE REPLACEMENT TREE REPLACEMENT 4,521.00 40.41BALDWIN SUPPLY COMPANY GENERAL FUND BALANCE SHEET INVENTORY 40.41 75.00BARNA, GUZY & STEFFEN LTD HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 75.00 3,155.00BARR ENGINEERING CO SOLID WASTE G&A GENERAL PROFESSIONAL SERVICES 3,155.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 4 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 4Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 2,300.00BIRCHWOOD NEIGHBORHOOD ASSOC HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 2,300.00 16,985.00BOBS WOOD SPECIALTIES PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 16,985.00 3,195.00BOLTON & MENK INC ENGINEERING G & A GENERAL PROFESSIONAL SERVICES 4,706.20STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 52.00STREET CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 1,563.42WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 9,516.62 150.00BOND TRUST SERVICES CORP 2010D FIRE STAT DEBT SERV G&A OTHER CONTRACTUAL SERVICES 150.00 250.52BOUND TREE MEDICAL, LLC POLICE G & A OPERATIONAL SUPPLIES 250.52 9,280.00BRAUN INTERTEC CORPORATION STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 9,280.00 15.00BREMER BANK NATIONAL ASSN POLICE G & A OTHER CONTRACTUAL SERVICES 15.00 785.00BRIN NORTHWESTERN GLASS CO FACILITIES MCTE G & A BUILDING MTCE SERVICE 785.00 1,940.53BROWNDALE NEIGHBORHOOD ASSOCIATION HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 1,940.53 55,814.00BUILDING RESTORATION CORP MUNICIPAL BLDG OTHER CONTRACTUAL SERVICES 55,814.00 553.84BURRELL TRUSTEE, GREGORY A EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTS 553.84 741.00CALHOUN TOWERS APTS OPERATIONS RADIO COMMUNICATIONS 741.00 7,091.60CAMPBELL KNUTSON PROF ASSOC ADMINISTRATION G & A LEGAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 5 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 5Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 272.00ENGINEERING G & A LEGAL SERVICES 16.00EXCESS PUBLIC LAND LEGAL SERVICES 1,062.00STREET CAPITAL PROJ G & A LEGAL SERVICES 240.00WATER UTILITY G&A LEGAL SERVICES 8,681.60 9,700.00CANVASWORKS INC SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 9,700.00 349.43CBIZ FINANCIAL SOLUTIONS INC EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICES 349.43 370.61CDW GOVERNMENT INC TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 370.61 3,630.63CENTER ENERGY & ENVIRONMENT DISCOUNT LOAN PROGRAM OTHER CONTRACTUAL SERVICES 3,630.63 2,616.47CENTERPOINT ENERGY FACILITY OPERATIONS HEATING GAS 4,332.90WATER UTILITY G&A HEATING GAS 415.57REILLY G & A HEATING GAS 133.34SEWER UTILITY G&A ELECTRIC SERVICE 95.64SEWER UTILITY G&A HEATING GAS 755.31PARK MAINTENANCE G & A HEATING GAS 36.63WESTWOOD G & A HEATING GAS 139.17NATURALIST PROGRAMMER HEATING GAS 8,525.03 12,827.30CENTERPOINT ENERGY SERVICES INC FACILITY OPERATIONS HEATING GAS 10,369.54ENTERPRISE G & A HEATING GAS 23,196.84 136.71CENTURY LINK E-911 PROGRAM REPAIRS 136.71 164.00CHASKA POLICE DEPARTMENT POLICE G & A TRAINING 164.00 37.50CHUX SCREEN PRINTING WATER UTILITY G&A OPERATIONAL SUPPLIES 37.50 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 6 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 6Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 41.60CINTAS CORPORATION FACILITIES MCTE G & A GENERAL SUPPLIES 208.23FACILITIES MCTE G & A OPERATIONAL SUPPLIES 720.35WATER UTILITY G&A OPERATIONAL SUPPLIES 323.92VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 1,294.10 34.23CITIZENS INDEPENDENT BANK GENERAL FUND BALANCE SHEET CLEARING ACCOUNT 8.99ADMINISTRATION G & A OFFICE SUPPLIES 59.49ADMINISTRATION G & A POSTAGE 494.36ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 81.64ADMINISTRATION G & A MEETING EXPENSE 28.22HUMAN RESOURCES GENERAL SUPPLIES 319.60HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 546.93HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 500.00HUMAN RESOURCES RECOGNITION 20.30HUMAN RESOURCES MEETING EXPENSE 573.38COMM & MARKETING G & A PRINTING & PUBLISHING 727.04IT G & A GENERAL SUPPLIES 60.00ASSESSING G & A OFFICE SUPPLIES 117.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPS 608.00ASSESSING G & A SEMINARS/CONFERENCES/PRESENTAT 38.00COMM DEV PLANNING G & A TRAINING 899.28GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 4.98POLICE G & A SMALL TOOLS 15.07POLICE G & A OTHER CONTRACTUAL SERVICES 225.95POLICE G & A SEMINARS/CONFERENCES/PRESENTAT 36.91POLICE G & A MEETING EXPENSE 42.87OPERATIONSOFFICE SUPPLIES 149.07OPERATIONSGENERAL SUPPLIES 1,053.96OPERATIONSOPERATIONAL SUPPLIES 743.13OPERATIONSTRAINING 2,585.48OPERATIONSSEMINARS/CONFERENCES/PRESENTAT 65.00INSPECTIONS G & A TRAINING 235.00PUBLIC WORKS G & A TRAINING 380.88PUBLIC WORKS G & A MEETING EXPENSE 130.00ENGINEERING G & A CLOTHING AND TOOL ALLOWANCE 705.00ENGINEERING G & A TRAINING 18.40TV PRODUCTION GENERAL SUPPLIES 325.00TV PRODUCTION SUBSCRIPTIONS/MEMBERSHIPS 445.82OUTREACH & PROGRAMMING GENERAL SUPPLIES 439.99GO BONDS-FIRE STATIONS G&A IMPROVEMENTS OTHER THAN BUILDI City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 7 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 7Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 125.75PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 338.10WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 1,313.15SEWER UTILITY G&A OPERATIONAL SUPPLIES 305.00SEWER UTILITY G&A TRAINING 69.98ORGANIZED REC G & A OFFICE SUPPLIES 1,800.00ADULT PROGRAMS GENERAL SUPPLIES 7.39FITNESS PROGRAMS GENERAL SUPPLIES 835.57HOLIDAY PROGRAMS GENERAL SUPPLIES 21.41PARK MAINTENANCE G & A GENERAL SUPPLIES 2,402.91PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 95.16ENVIRONMENTAL G & A OFFICE SUPPLIES 480.00ENVIRONMENTAL G & A TRAINING 571.11OUTREACHGENERAL SUPPLIES 39.00TREE MAINTENANCE SMALL TOOLS 335.75BEAUTIFICATION / FLOWERS GENERAL SUPPLIES 444.54WESTWOOD G & A GENERAL SUPPLIES 44.14REC CENTER/AQUATIC PARK SAL GENERAL SUPPLIES 20.00REC CENTER/AQUATIC PARK SAL ADVERTISING 462.00REC CENTER/AQUATIC PARK SAL SEMINARS/CONFERENCES/PRESENTAT 32.17REC CENTER BUILDING OPERATIONAL SUPPLIES 241.28INSTRUCTIONAL SKATING LESSONS OPERATIONAL SUPPLIES 22,703.38 19,479.98COLICH & ASSOCIATES ADMINISTRATION G & A LEGAL SERVICES 19,479.98 199.05COMCASTIT G & A DATACOMMUNICATIONS 169.70WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 84.85SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 453.60 5,754.84COMMERCIAL ASPHALT COMPANY PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIES 5,754.84 3,006.56COMMUNITY ACTION PARTNERSHIP SUB HENN EMERGENCY REPAIR GRANT OTHER CONTRACTUAL SERVICES 3,006.56 82.38COMPAR INC POLICE G & A OPERATIONAL SUPPLIES 82.38 246.12CONTINENTAL RESEARCH CORP REC CENTER/AQUATIC PARK SAL OPERATIONAL SUPPLIES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 8 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 8Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 246.12 8,158.89CORNERSTONE ADVOCACY SERVICE POLICE G & A OTHER CONTRACTUAL SERVICES 8,158.89 425.00CORONA SOLUTIONS TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 425.00 171.19CORPORATE CONNECTION WATER UTILITY G&A OPERATIONAL SUPPLIES 171.19 8,386.20COVERALL OF THE TWIN CITIES GENERAL BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 8,386.20 1,559.52CREATIVE PRODUCT SOURCING INC - DARE DARE PROGRAM OPERATIONAL SUPPLIES 1,559.52 103.85CREEKSIDE NEIGHBORHOOD ASSOC HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 103.85 26.20CROWN STAMP & ENGRAVING SUPPORT SERVICES G&A OFFICE SUPPLIES 26.20 239.45CUB FOODS POLICE G & A SUBSISTENCE SUPPLIES 239.45 18,529.95CUMMINS NPOWER LLC MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 18,529.95 402.86CUSTOM HOSE TECH INC GENERAL FUND BALANCE SHEET INVENTORY 402.86 577.50CUSTOM PRODUCTS & SERVICES SSD 2 G&A OTHER CONTRACTUAL SERVICES 1,306.67SSD #5 G&A OTHER CONTRACTUAL SERVICES 1,884.17 99.00D&T APPLIANCE SERVICE CO OPERATIONS REPAIRS 99.00 390.00DAKOTA SUPPLY GROUP WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 390.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 9 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 9Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 4,214.00DALCO ENTERPRISES INC GENERAL BUILDING MAINTENANCE CLEANING/WASTE REMOVAL SUPPLY 4,214.00 140.00DAVIS, CHAWNITA FACILITY ROOM RENTAL RENT REVENUE 140.00 289.73DELI DOUBLE WESTWOOD G & A CONCESSION SUPPLIES 289.73 949.06DENARO, JAMES HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 949.06 3,822.00DEPT LABOR & INDUSTRY INSPECTIONS G & A DUE TO OTHER GOVTS 3,822.00 336.76DEX MEDIA EAST LLC ENTERPRISE G & A ADVERTISING 336.76 50.60DISCOUNT STEEL INC DAMAGE REPAIR OTHER IMPROVEMENT SUPPLIES 467.00PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 517.60 352.61DISTRICT COURT ADMINISTRATOR POLICE G & A OPERATIONAL SUPPLIES 352.61 3,000.00DJ ELECTRIC SERVICES INC PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 1,500.00ARENA MAINTENANCE EQUIPMENT MTCE SERVICE 4,500.00 1,143.00DO-GOOD.BIZ INC COMM & MARKETING G & A POSTAGE 10,142.35POSTAL SERVICES POSTAGE 11,285.35 75.00DUBE, JIM INSPECTIONS G & A TRAINING 75.00 524.50ECM PUBLISHERS INC ADMINISTRATION G & A LEGAL NOTICES 1,150.00COMM & MARKETING G & A PRINTING & PUBLISHING 101.08STREET CAPITAL PROJ G & A LEGAL NOTICES 101.08PAVEMENT MANAGEMENT G&A LEGAL NOTICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 10 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 10Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 231.84SEWER UTILITY G&A LEGAL NOTICES 2,108.50 273.75EGAN COMPANIES INC SYSTEM REPAIR OTHER CONTRACTUAL SERVICES 273.75 200.00ELECTRIC PUMP INC PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES 200.00 303.47ELIOT VIEW NEIGHBORHOOD ASSN HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 303.47 250.00ELLIS, RUTH GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 250.00 1,765.59ENVIRONMENTAL EQUIPMENT & SERVICES INC GENERAL FUND BALANCE SHEET INVENTORY 1,765.59 3,194.00ESCAPE FIRE PROTECTION LLC FACILITIES MCTE G & A BUILDING MTCE SERVICE 3,194.00 17,012.78ET&T DISTRIBUTORS INC PARK IMPROVE CAPITAL PROJECT OTHER 17,012.78 647.38FACTORY MOTOR PARTS CO GENERAL FUND BALANCE SHEET INVENTORY 31.42GENERAL REPAIR GENERAL SUPPLIES 678.80 5.50FASTENAL COMPANY WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 139.70PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES 636.71GENERAL REPAIR GENERAL SUPPLIES 781.91 44.24FEINBERG, GREG WESTWOOD G & A MILEAGE-PERSONAL CAR 44.24 269.53FERRELLGASICE RESURFACER MOTOR FUELS 269.53 1,242.00FIRST ADVANTAGE LNS SCREENING SOLUTIONS HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 1,242.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 11 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 11Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 42,888.00FISCHER BROS LLC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 42,888.00 2,098.00FLAGSHIP RECREATION LLC PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 2,098.00 200.00FLEX COMPENSATION INC EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICES 200.00 1,500.00FLORY, BRIAN ESCROWS PMC ESCROW 1,500.00 139.42FLOYD TOTAL SECURITY FINANCE G & A OTHER CONTRACTUAL SERVICES 139.42 7,000.00FOKINA, IRINA ESCROWS DEMO / BROOKSIDE TRAFFIC 7,000.00 13.28FRATTALLONESGENERAL FUND BALANCE SHEET INVENTORY 23.97WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 37.25 340.06G S DIRECT ENGINEERING G & A GENERAL SUPPLIES 340.06 60.38GARSKE, BETTE HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 60.38 634.00GARTNER REFRIG & MFG INC ARENA MAINTENANCE EQUIPMENT MTCE SERVICE 634.00 275.00GAS TANK RENU/RADIATOR WEST GENERAL REPAIR EQUIPMENT MTCE SERVICE 275.00 4,793.06GEAR WASH LLC OPERATIONS OPERATIONAL SUPPLIES 4,793.06 200.00GIRL SCOUT TROOP 10214 ENVIRONMENTAL G & A LANDSCAPING MATERIALS 200.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 12 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 12Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 4,078.86GLTC PREMIUM PAYMENTS EMPLOYEE FLEXIBLE SPENDING B/S LONG TERM CARE INSUR 4,078.86 2,500.00GONYEA HOMES ESCROWS DEMO / BROOKSIDE TRAFFIC 2,500.00 1,750.00GONZALEZ-BAEZ, WENDY NEIGHBORHOOD PUBLIC ART OTHER CONTRACTUAL SERVICES 1,750.00 660.00GOODPOINTE TECHNOLOGY INC PAVEMENT MANAGEMENT G&A GENERAL PROFESSIONAL SERVICES 660.00 1,079.10GOPHER STATE ONE-CALL INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 1,079.10 765.96GOTHBERG, BRIDGET HEALTH IN THE PARK INITIATIVE SEMINARS/CONFERENCES/PRESENTAT 765.96 136.34GRAINGER INC, WW GENERAL FUND BALANCE SHEET INVENTORY 136.34 3,200.00GRIMES DESIGN WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 3,200.00 2,155.00GROTH SEWER & WATER WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 2,155.00 456.96GROUP HEALTH INC - WORKSITE EMPLOYEE FLEX SPEND G&A HEALTH INSURANCE 456.96 193.00GUILDARTARENA MAINTENANCE GENERAL SUPPLIES 193.00 705.76HACH CO WATER UTILITY G&A GENERAL SUPPLIES 705.76 1,500.00HALLQUIST, WILLIAM PERFORMING ARTS OTHER CONTRACTUAL SERVICES 1,500.00 204.00HAMILTON, MIKE SOFTBALL OTHER CONTRACTUAL SERVICES 204.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 13 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 13Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 1,175.90HAMMEL GREEN & ABRAHAMSON INC PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 1,175.90 11,442.27HAWKINS INC WATER UTILITY G&A OPERATIONAL SUPPLIES 3,714.24AQUATIC PARK BUDGET OPERATIONAL SUPPLIES 15,156.51 1,017.00HCI CHEMTEC INC PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIES 1,017.00 383.66HEARTLAND SERVICES INC TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 383.66 318.00HEDBERG AGGREGATES STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 159.90WESTWOOD G & A GENERAL SUPPLIES 477.90 637.50HENDERSON, TRACY SOFTBALL OTHER CONTRACTUAL SERVICES 637.50 50.00HENDRICKSON, MICHAEL INSPECTIONS G & A PLUMBING 50.00 86.00HENNEPIN COUNTY TAXPAYER SERVICES ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPS 86.00 500.00HENNEPIN COUNTY TREASURER IT G & A COMPUTER SERVICES 1,923.90POLICE G & A EQUIPMENT MTCE SERVICE 12,407.45POLICE G & A SUBSISTENCE SERVICE 660.00OPERATIONSOPERATIONAL SUPPLIES 1,367.10OPERATIONSRADIO COMMUNICATIONS 63.90OPERATIONSEMERGENCY PREPAREDNESS 410.46PARK MAINTENANCE G & A GARBAGE/REFUSE SERVICE 17,332.81 1,410.60HILL CO, ROBERT B GENERAL BUILDING MAINTENANCE GENERAL SUPPLIES 1,410.60 16,000.00HOLLYWOOD PYROTECHNICS INC HOLIDAY PROGRAMS OTHER CONTRACTUAL SERVICES 16,000.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 14 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 14Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 200.64HOME DEPOT CREDIT SERVICES GENERAL BUILDING MAINTENANCE GENERAL SUPPLIES 44.52DAMAGE REPAIR SMALL TOOLS 9.85DAMAGE REPAIR OTHER IMPROVEMENT SUPPLIES 49.88INSTALLATIONOTHER IMPROVEMENT SUPPLIES 98.61WATER UTILITY G&A OTHER 195.80SEWER UTILITY G&A OTHER 115.02PARK MAINTENANCE G & A GENERAL SUPPLIES 116.82PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 103.76REFORESTATIONGENERAL SUPPLIES 100.73BEAUTIFICATION / FLOWERS GENERAL SUPPLIES 203.70BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 208.18REC CENTER BUILDING GENERAL SUPPLIES 1,447.51 97.27HOME DEPOT CREDIT SRVCS PARK IMPROVE CAPITAL PROJECT YARD WASTE SERVICE 406.10PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 503.37 115.92HOPPE, MARK ASSESSING G & A MILEAGE-PERSONAL CAR 115.92 5,043.00HORIZON COMMERCIAL POOL SUPPLY PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 5,043.00 600.00HRGREENTECHNOLOGY REPLACEMENT POLICE EQUIPMENT 600.00 173.25HUBER UNIVERSAL SERVICES LLC SPEC ASSMT CONSTRUCTION OTHER CONTRACTUAL SERVICES 173.25 1,632.55I.U.O.E. LOCAL NO 49 EMPLOYEE FLEXIBLE SPENDING B/S UNION DUES 1,632.55 204.00IAEIINSPECTIONS G & A SUBSCRIPTIONS/MEMBERSHIPS 204.00 191.25IDEAL SERVICE INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 191.25 495.00IFP TEST SERVICES HUMAN RESOURCES RECRUITMENT City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 15 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 15Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 495.00 1,086.99IMPACT PROVEN SOLUTIONS WATER UTILITY G&A POSTAGE 1,086.99SEWER UTILITY G&A POSTAGE 1,087.00SOLID WASTE COLLECTIONS POSTAGE 1,087.00STORM WATER UTILITY G&A POSTAGE 4,347.98 12.40INDELCOWATER UTILITY G&A EQUIPMENT MTCE SERVICE 12.40 285.00INDEPENDENT BLACK DIRT CO WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 855.00PARK GROUNDS MAINTENANCE BLDG/STRUCTURE SUPPLIES 1,140.00 39,773.89INFRASTRUCTURE TECH INC STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 39,773.89 2,277.51INTEGRA TELECOM IT G & A TELEPHONE 2,277.51 142.75INTOXIMETERS INC POLICE G & A OPERATIONAL SUPPLIES 142.75 488.01INVER GROVE FORD GENERAL FUND BALANCE SHEET INVENTORY 573.15VEHICLE MAINTENANCE G&A EQUIPMENT MTCE SERVICE 68.82GENERAL REPAIR GENERAL SUPPLIES 1,129.98 140.98I-STATE TRUCK CENTER GENERAL FUND BALANCE SHEET INVENTORY 140.98 507.14J & F REDDY RENTS ADMINISTRATION G & A RENTAL EQUIPMENT 507.14 1,683.36JASMER, JERRY EMPLOYEE FLEX SPEND G&A TUITION 1,683.36 2,280.00JEFFERSON FIRE & SAFETY INC OPERATIONS GENERAL SUPPLIES 245.87OPERATIONSOPERATIONAL SUPPLIES 2,525.87 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 16 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 16Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 23.36JERRY'S HARDWARE WATER UTILITY G&A GENERAL SUPPLIES 43.22PARK MAINTENANCE G & A GENERAL SUPPLIES 23.38ENVIRONMENTAL G & A GENERAL SUPPLIES 50.36ENVIRONMENTAL G & A OTHER IMPROVEMENT SUPPLIES 140.32 72.71JOHN HENRY FOSTER MN WATER UTILITY G&A EQUIPMENT MTCE SERVICE 72.71 947.58JOHNSON, CARRIELEA EMPLOYEE FLEX SPEND G&A TUITION 947.58 48.60JZ ELECTRIC INSPECTIONS G & A ELECTRICAL 48.60 1,500.00KARALIS, GEORGE ESCROWS PMC ESCROW 1,500.00 503.08KELLER, JASMINE Z EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTS 503.08 4.00KELLEY, RYAN COMM DEV PLANNING G & A MEETING EXPENSE 24.36COMM DEV PLANNING G & A MILEAGE-PERSONAL CAR 28.36 540.00KIDCAPERS PORTRAITS OPERATIONS GENERAL PROFESSIONAL SERVICES 540.00 40.00KOERING, STEVE OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 40.00 2,619.00KOVAL APPLIANCE CO PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 2,619.00 589.95KREMER SERVICES LLC VEHICLE MAINTENANCE G&A EQUIPMENT MTCE SERVICE 589.95 515.00KROOG, RACHAEL ENVIRONMENTAL G & A OTHER CONTRACTUAL SERVICES 515.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 17 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 17Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 1,109.63KRUELLE, BRYAN EMPLOYEE FLEX SPEND G&A TUITION 1,109.63 182.24KRUGE-AIR INC BLDG/GROUNDS OPS & MAINT BUILDING MTCE SERVICE 182.24 102.00KUBES, JON SOFTBALL OTHER CONTRACTUAL SERVICES 102.00 34.00LAKES GAS CO WATER UTILITY G&A OPERATIONAL SUPPLIES 34.00 48.91LANO EQUIPMENT INC GENERAL FUND BALANCE SHEET INVENTORY 48.91 1,096.58LARSCO INC WATER UTILITY G&A EQUIPMENT MTCE SERVICE 1,096.58 2,081.24LARSON, JH CO SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 2,081.24 150.00LASHLEY, PATRICK & KATHRYN ESCROWS PMC ESCROW 150.00 474.53LAURIN, JOSEPH PUBLIC WORKS OPS G & A SEMINARS/CONFERENCES/PRESENTAT 474.53 2,430.00LAW ENFORCEMENT LABOR SERVICES INC EMPLOYEE FLEXIBLE SPENDING B/S UNION DUES 2,430.00 569.43LAWSON PRODUCTS INC GENERAL REPAIR GENERAL SUPPLIES 569.43 12,180.00LEAGUE OF MINNESOTA CITIES EMPLOYEE FLEX SPEND G&A League of MN Cities dept'l exp 12,180.00 125.00LEAGUE OF MN CITIES INSPECTIONS G & A TRAINING 125.00 135,152.75LEAGUE OF MN CITIES INSURANCE TRUST EMPLOYEE FLEX SPEND G&A League of MN Cities dept'l exp 112,368.25UNINSURED LOSS B/S PREPAID EXPENSES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 18 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 18Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 2,580.86UNINSURED LOSS G&A UNINSURED LOSS 250,101.86 1,587.50LEARNING JOURNEYS COMM DEV PLANNING G & A TRAINING 1,587.50 220.00LEHMAN, DAN INSPECTIONS G & A CERTIFICATE OF COMPLIANCE 220.00 600.00LEICA GEOSYSTEMS INC ENGINEERING G & A SUBSCRIPTIONS/MEMBERSHIPS 600.00 173.75LIBERTY TIRE RECYCLING LLC VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SERVICE 173.75 7.00LITIN PAPER, PACKAGING & CONVERTING SOLID WASTE G&A DELIVERY 7.00 205.83LITTLE FALLS MACHINE INC GENERAL FUND BALANCE SHEET INVENTORY 205.83 7,019.06LOCKRIDGE GRINDAL NAUEN PLLP REILLY G & A LEGAL SERVICES 7,019.06 1,654.16LOFFLER COMPANIES IT G & A EQUIPMENT MTCE SERVICE 1,654.16 118.56LUBRICATION TECHNOLOGIES INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 118.56 53.20LYNCH, DEBRA ASSESSING G & A MILEAGE-PERSONAL CAR 53.20 2,523.00MAACO AUTO PAINTING UNINSURED LOSS G&A UNINSURED LOSS 2,523.00 96.35MACQUEEN EQUIP CO GENERAL FUND BALANCE SHEET INVENTORY 762.94UNINSURED LOSS G&A UNINSURED LOSS 859.29 828.80MALONE, DANIEL ATHLETIC CAMPS OTHER CONTRACTUAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 19 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 19Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 828.80 12,425.44MANSFIELD OIL COMPANY GENERAL FUND BALANCE SHEET INVENTORY 12,425.44 72.03MATHESON TRI-GAS INC VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 72.03 500.00MCCHESNEY, CHARLIE SOFTBALL OTHER CONTRACTUAL SERVICES 500.00 47,614.36-MCCROSSAN INC, C S STREET CAPITAL PROJ BAL SHEET RETAINED PERCENTAGE 952,287.19CONSTRUCTION MATERIAL OTHER CONTRACTUAL SERVICES 904,672.83 80.00MCDOWELL, SHELIA INSPECTIONS G & A BUILDING 80.00 70.00MCFOAADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPS 70.00 19.94MENARDSDAMAGE REPAIR GENERAL SUPPLIES 4.29SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 17.59PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 373.76PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 934.99PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 14.70ENVIRONMENTAL G & A LANDSCAPING MATERIALS 56.16WESTWOOD G & A GENERAL SUPPLIES 179.88WESTWOOD G & A OTHER IMPROVEMENT SUPPLIES 1,601.31 992.64METERING & TECHNOLOGY SOLUTIONS WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 992.64 262.87METHODIST HOSPITAL SEWER UTILITY G&A GENERAL CUSTOMERS 262.87 199.50METRO VOLLEYBALL OFFICIALS VOLLEYBALL OTHER CONTRACTUAL SERVICES 199.50 7,380.45METROPOLITAN COUNCIL INSPECTIONS G & A DUE TO OTHER GOVTS City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 20 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 20Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 2,450.00WATER UTILITY G&A CLEANING/WASTE REMOVAL SERVICE 1,250.00REILLY BUDGET CLEANING/WASTE REMOVAL SERVICE 299,953.92SEWER UTILITY BALANCE SHEET PREPAID EXPENSES 1,380.00STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 312,414.37 69.95MICRO CENTER PUBLIC WORKS G & A GENERAL SUPPLIES 69.95 5.00MIDLAND HEATING & AIR CONDITIONING INSPECTIONS G & A STATE SURCHARGE PAYABLE 65.00INSPECTIONS G & A MECHANICAL 70.00 503.29MILLNER, GOTTFRIED WATER UTILITY G&A GENERAL CUSTOMERS 503.29 1,139.74MINIKAHDA VISTA NEIGHBORHOOD ASSN HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 1,139.74 510.30MINNEAPOLIS FINANCE DEPT PAWN FEES OTHER CONTRACTUAL SERVICES 510.30 129.07MINNESOTA BENEFIT ASSOC EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITS 129.07 1,250.00MINNESOTA CIT OFFICER'S ASSN POLICE G & A TRAINING 1,250.00 30.00MINNESOTA ICE ARENA MGRS ASSOC ARENA MAINTENANCE SEMINARS/CONFERENCES/PRESENTAT 30.00 16.00MINNESOTA NCPERS LIFE INS EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITS 16.00 45.00MINNESOTA POLLUTION CONTROL AGENCY SEWER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 45.00 50.00MINNESOTA STATE FIRE CHIEFS ASSOC. OPERATIONS FIRE PREVENTION SUPPLIES 50.00 52.18MINNESOTA WANNER COMPANY GENERAL FUND BALANCE SHEET INVENTORY City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 21 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 21Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 52.18 225.00MINT CONDITION DETAILING GENERAL REPAIR EQUIPMENT MTCE SERVICE 225.00 956.42MINUTEMAN PRESS SUPPORT SERVICES G&A OFFICE SUPPLIES 956.42 4,000.00MOBIUS INC HEALTH IN THE PARK INITIATIVE OTHER CONTRACTUAL SERVICES 4,000.00 54.75MONSON, DARLA ADMINISTRATION G & A MEETING EXPENSE 54.75 2,892.20M-R SIGN CO INC FABRICATION OTHER IMPROVEMENT SUPPLIES 2,892.20 158.00MRPAORGANIZED REC G & A MEETING EXPENSE 158.00 29,506.50MTI DISTRIBUTING CO GENERAL FUND BALANCE SHEET INVENTORY 29,506.50 750.50MVTL LABORATORIES REILLY BUDGET OTHER CONTRACTUAL SERVICES 750.50 1,099.98NAPA (GENUINE PARTS CO)GENERAL FUND BALANCE SHEET INVENTORY 4.72GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 16.59OPERATIONSGENERAL SUPPLIES 11.60INSTALLATIONOTHER IMPROVEMENT SUPPLIES 95.77WATER UTILITY G&A EQUIPMENT PARTS 3.96PARK MAINTENANCE G & A GENERAL SUPPLIES 269.00PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 84.67GENERAL REPAIR GENERAL SUPPLIES 1,586.29 600.00NATIVE PLANT NURSERY INC BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 600.00 1,733.00NATURAL REFLECTIONS VII LLC SSD 1 G&A OTHER CONTRACTUAL SERVICES 1,850.00SSD 2 G&A OTHER CONTRACTUAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 22 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 22Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 525.00SSD 3 G&A OTHER CONTRACTUAL SERVICES 493.00SSD #4 G&A OTHER CONTRACTUAL SERVICES 645.75SSD #5 G&A OTHER CONTRACTUAL SERVICES 5,246.75 1,500.00NELSON COACHING INC, SCOTT HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 1,500.00 5,086.41NEXTEL COMMUNICATIONS CELLPHONES, IPADS, ETC.OFFICE EQUIPMENT 5,086.41 225.00NGUYEN ARCHITECTS MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 225.00 185.00NIGPVEHICLE MAINTENANCE G&A SUBSCRIPTIONS/MEMBERSHIPS 185.00 2,500.00NITTI ROLLOFF SERVICES ESCROWS DEMO / BROOKSIDE TRAFFIC 2,500.00 359.90NOKOMIS SHOE SHOP WATER UTILITY G&A OPERATIONAL SUPPLIES 179.95REC CENTER/AQUATIC PARK SAL OPERATIONAL SUPPLIES 539.85 6,976.88NORTHEAST TREE INC TREE MAINTENANCE OTHER CONTRACTUAL SERVICES 6,976.88 67.52NORTHERN AIRE SWIMMING POOLS SPLASH PAD MAINT - Oak Hill Pk GENERAL SUPPLIES 67.52 9,500.00NORTHERN STAR JUVENILE DIVERSION POLICE G & A OTHER CONTRACTUAL SERVICES 9,500.00 474.00NORTHERN STATES SUPPLY INC MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 474.00 92.46OFFICE DEPOT ADMINISTRATION G & A OFFICE SUPPLIES 121.20ADMINISTRATION G & A GENERAL SUPPLIES 46.80HUMAN RESOURCES OFFICE SUPPLIES 77.11FINANCE G & A OFFICE SUPPLIES 80.62GENERAL INFORMATION OFFICE SUPPLIES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 23 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 23Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 1,238.15GENERAL BUILDING MAINTENANCE OTHER 194.49POLICE G & A OFFICE SUPPLIES 439.39INSPECTIONS G & A GENERAL SUPPLIES 35.05PUBLIC WORKS G & A OFFICE SUPPLIES 3.14HOUSING REHAB G & A OFFICE SUPPLIES 52.80ORGANIZED REC G & A OFFICE SUPPLIES 2,381.21 71.93OLSEN CHAIN & CABLE CO INC INSTALLATION SMALL TOOLS 227.60WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 299.53 803.41OLSON, JEAN HEALTH IN THE PARK INITIATIVE SEMINARS/CONFERENCES/PRESENTAT 71.13HEALTH IN THE PARK INITIATIVE MEETING EXPENSE 874.54 450.00OLSON, MARNEY MOVE-UP PROGRAM GENERAL SUPPLIES 294.00MOVE-UP PROGRAM TRAVEL/MEETINGS 19.25MOVE-UP PROGRAM MEETING EXPENSE 763.25 525.57ON SITE SANITATION PORTABLE TOILETS/FIELD MAINT OTHER CONTRACTUAL SERVICES 50.01OPENOTHER CONTRACTUAL SERVICES 98.01OFF-LEASH DOG PARK OTHER CONTRACTUAL SERVICES 130.01WESTWOOD G & A OTHER CONTRACTUAL SERVICES 803.60 97.61O'REILLY AUTO PARTS GENERAL FUND BALANCE SHEET INVENTORY 97.61 1,230.00OSTVIG TREE INC REFORESTATION OTHER CONTRACTUAL SERVICES 1,230.00 3,570.00OUT BACK NURSERY TREE REPLACEMENT TREE REPLACEMENT 3,570.00 436.45OVERHEAD DOOR CO FACILITIES MCTE G & A BLDG/STRUCTURE SUPPLIES 436.45 286.55PAINTERS GEAR INC PAINTING OTHER IMPROVEMENT SUPPLIES 286.55 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 24 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 24Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 988.80PARKER, JON EMPLOYEE FLEX SPEND G&A TUITION 988.80 299.00PARSONS ELECTRIC TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 299.00 145.00PERFECT EXTERIORS INSPECTIONS G & A BUILDING 145.00 225.00PETRIE, SARA GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 225.00 2,650.00PETTY CASH GENERAL FUND BALANCE SHEET PETTY 33.04ADMINISTRATION G & A MILEAGE-PERSONAL CAR 16.00HUMAN RESOURCES TRAINING 33.60HEALTH IN THE PARK INITIATIVE SEMINARS/CONFERENCES/PRESENTAT 25.00HEALTH IN THE PARK INITIATIVE TRAVEL/MEETINGS 1.83IT G & A POSTAGE 11.20IT G & A MILEAGE-PERSONAL CAR 25.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPS 25.00POLICE G & A MOTOR FUELS 10.47POLICE G & A MEETING EXPENSE 10.50NEIGHBORHOOD OUTREACH OPERATIONAL SUPPLIES 32.50DWI ENFORCEMENT LICENSES 7.28OPERATIONSMILEAGE-PERSONAL CAR 33.06INSPECTIONS G & A GENERAL SUPPLIES 7.31INSPECTIONS G & A TRAINING 14.50INSPECTIONS G & A MEETING EXPENSE 6.63PUBLIC WORKS G & A GENERAL SUPPLIES 30.00PUBLIC WORKS G & A SEMINARS/CONFERENCES/PRESENTAT 51.89PUBLIC WORKS G & A MEETING EXPENSE 19.00PUBLIC WORKS OPS G & A LICENSES 10.28MOVE-UP PROGRAM OFFICE SUPPLIES 5.40WATER UTILITY G&A GENERAL SUPPLIES 77.27WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 32.09WATER UTILITY G&A TRAINING 13.97SOLID WASTE G&A GENERAL SUPPLIES 48.00VEHICLE MAINTENANCE G&A LICENSES 2.18GENERAL REPAIR GENERAL SUPPLIES 3,233.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 25 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 25Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 15.00PETTY CASH - WWNC COMM & MARKETING G & A PRINTING & PUBLISHING 56.08WESTWOOD G & A GENERAL SUPPLIES 13.44WESTWOOD G & A MILEAGE-PERSONAL CAR 84.52 3,512.99PHILIP'S TREE CARE INC ROUTINE MAINTENANCE OTHER CONTRACTUAL SERVICES 312.00PARK GROUNDS MAINTENANCE OTHER CONTRACTUAL SERVICES 3,824.99 74.12PHIMISTER, MEGHAN HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 74.12 122.44PIONEER RIM & WHEEL CO GENERAL FUND BALANCE SHEET INVENTORY 122.44 66.00PIVEC, MICHAEL INSPECTIONS G & A LICENSES 66.00 532.35PLANTRA INC REFORESTATION FUND OTHER CONTRACTUAL SERVICES 532.35 1,224.13POMP'S TIRE SERVICE INC GENERAL FUND BALANCE SHEET INVENTORY 1,224.13 286.80POPP.COM INC PARK MAINTENANCE G & A TELEPHONE 286.80 103.00PRAIRIE RESTORATIONS INC INVASIVE PLANT MGMT/RESTORATIO LANDSCAPING MATERIALS 103.00 415.34PRECISE MRM LLC PUBLIC WORKS OPS G & A TELEPHONE 415.33WATER UTILITY G&A TELEPHONE 415.33SEWER UTILITY G&A TELEPHONE 415.32STORM WATER UTILITY G&A TELEPHONE 1,661.32 118.00PRECISION LANDSCAPE & TREE TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICE 118.00 56.00PRESSWRITE PRINTING INC IT G & A OTHER CONTRACTUAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 26 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 26Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 56.00 144.00PRINTERS SERVICE INC ARENA MAINTENANCE EQUIPMENT MTCE SERVICE 144.00 430.50Q3 CONTRACTING SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 458.25STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 888.75 30.30QUICKSILVER EXPRESS COURIER ADMINISTRATION G & A POSTAGE 29.07VEHICLE MAINTENANCE G&A POSTAGE 59.37 20.02RACETTE, MARY KAY HEALTH IN THE PARK INITIATIVE OFFICE SUPPLIES 20.02 2,954.88RANDY'S SANITATION INC FACILITY OPERATIONS GARBAGE/REFUSE SERVICE 1,307.23REC CENTER BUILDING GARBAGE/REFUSE SERVICE 4,262.11 31.60REGENCY OFFICE PRODUCTS LLC POLICE G & A OFFICE SUPPLIES 31.60 5,000.00RESKIN, PHIL ESCROWS DEMO / BROOKSIDE TRAFFIC 5,000.00 6,114.86RICOH USA INC IT G & A EQUIPMENT MTCE SERVICE 6,114.86 52.54RIGID HITCH INC GENERAL FUND BALANCE SHEET INVENTORY 52.54 4,048.53RMR SERVICES WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 4,048.53 229.60ROSA, NATE ORGANIZED REC G & A MILEAGE-PERSONAL CAR 229.60 96.00ROSENBAUER MINNESOTA LLC GENERAL FUND BALANCE SHEET INVENTORY 96.00 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 27 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 27Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 234.29SAFE-FAST INC WATER UTILITY G&A OPERATIONAL SUPPLIES 234.29 39.95SAFELITE FULFILLMENT INC GENERAL REPAIR EQUIPMENT MTCE SERVICE 39.95 5.52SAM'S CLUB ORGANIZED REC G & A INTEREST/FINANCE CHARGES 311.56HOLIDAY PROGRAMS GENERAL SUPPLIES 317.08 875.00SAVATREETREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICE 875.00 184.00SCHAAKE COMPANY, AJ ADMINISTRATION G & A MEETING EXPENSE 184.00 29.98SCHERER BROS. LUMBER CO.PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 106.93PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES 136.91 1,979.76SCHINDLER ELEVATOR CORP FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 1,979.76 7,200.00SCHMITZ CONSTRUCTION CO LLC, J P WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 7,200.00 58,014.41SEHSTREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 58,014.41 7,000.00SENEVIRATNE, SHEREEN LEONTIA ESCROWS PMC ESCROW 7,000.00 450.00SHELTER ARCHITECTURE + DESIGN MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 450.00 199.65SHERWIN-WILLIAMS CO GRAFFITI CONTROL OTHER IMPROVEMENT SUPPLIES 199.65 11.25SHRED-IT USA MINNEAPOLIS ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICES 10.00FINANCE G & A GENERAL PROFESSIONAL SERVICES 67.50POLICE G & A OTHER CONTRACTUAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 28 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 28Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 11.25INSPECTIONS G & A GENERAL PROFESSIONAL SERVICES 11.25WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 11.25PARK AND REC G&A GENERAL PROFESSIONAL SERVICES 122.50 518.00SIGN PRODUCERS INC FACILITIES MCTE G & A GENERAL SUPPLIES 518.00 641.00SIMPLEXGRINNELL LP REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 641.00 90.00SKALLET, DAVID INSPECTIONS G & A LICENSES 90.00 14.84SKB ENVIRONMENTAL ROUTINE MAINTENANCE CLEANING/WASTE REMOVAL SUPPLY 14.84 1,487.67SLP FF ASSOC IAFF LOCAL #993 EMPLOYEE FLEXIBLE SPENDING B/S UNION DUES 1,487.67 1,000.00SMP PRODUCTIONS PERFORMING ARTS OTHER CONTRACTUAL SERVICES 1,000.00 245.00SNYDER ELECTRIC PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES 245.00 7,425.00SOURCE WATER SOLUTIONS LLC WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 7,425.00 2,082.94SPRINTIT G & A DATACOMMUNICATIONS 2,082.94 222.66SPS COMPANIES INC SEWER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDI 121.72PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 30.82SPLASH PAD MAINT - Oak Hill Pk GENERAL SUPPLIES 375.20 172.90STAR TRIBUNE ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPS 172.90 200.00STAVER, KATRINA GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 29 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 29Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 200.00 558.10STONEBROOKE EQUIPMENT INC GENERAL FUND BALANCE SHEET INVENTORY 558.10 1,000.00STRAATE, SAMUEL ESCROWS PMC ESCROW 1,000.00 153.93STREICHER'S GENERAL FUND BALANCE SHEET INVENTORY 51.99POLICE G & A POLICE EQUIPMENT 84.98ERUOPERATIONAL SUPPLIES 29.99WATER UTILITY G&A SMALL TOOLS 320.89 1,923.74SUBURBAN TIRE WHOLESALE GENERAL FUND BALANCE SHEET INVENTORY 1,923.74 23,234.52SUMMIT ENVIROSOLUTIONS INC REILLY BUDGET GENERAL PROFESSIONAL SERVICES 23,234.52 92.19TAHR INC WATER UTILITY G&A GENERAL CUSTOMERS 92.19 14.08TARGET BANK POLICE G & A TRAINING 14.08 178.02TELELANGUAGE INC ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 178.02 18.27TERMINAL SUPPLY CO GENERAL FUND BALANCE SHEET INVENTORY 39.44VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 2.64GENERAL REPAIR GENERAL SUPPLIES 60.35 104.06TERMINIX INT REC CENTER BUILDING BUILDING MTCE SERVICE 104.06 400.00TERRAMAX INC PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIES 400.00 48.00TEXA TONKA TAILORING OPERATIONS GENERAL SUPPLIES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 30 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 30Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 48.00 3,111.33THE HARTFORD - PRIORITY ACCOUNTS EMPLOYEE FLEX SPEND G&A LONG TERM DISABILITY 3,111.33 138.92THOMSON REUTERS WEST PAYMENT CENTER SUPPORT SERVICES OTHER CONTRACTUAL SERVICES 138.92 720.50TIMESAVER OFF SITE SECRETARIAL ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 720.50 2,458.20TOWMASTERGENERAL FUND BALANCE SHEET INVENTORY 2,458.20 2,950.00TOWN & COUNTRY FENCE INC SOLID WASTE G&A OTHER 2,950.00 1,346.88TRANSMISSION SHOP INC GENERAL REPAIR EQUIPMENT MTCE SERVICE 1,346.88 3,502.00TRANSPORT GRAPHICS GENERAL FUND BALANCE SHEET INVENTORY 3,502.00 12,825.00TRI STATE BOBCAT GENERAL FUND BALANCE SHEET INVENTORY 12,825.00 164.05TURFWERKSGENERAL FUND BALANCE SHEET INVENTORY 164.05 8,750.00TWIN CITIES PUBLIC TELEVISION HEALTH IN THE PARK INITIATIVE OTHER CONTRACTUAL SERVICES 8,750.00 1,290.65TWIN CITY OUTDOOR SERVICES INC SNOW PLOWING OTHER CONTRACTUAL SERVICES 3,858.75SSD 1 G&A OTHER CONTRACTUAL SERVICES 1,375.50SSD 3 G&A OTHER CONTRACTUAL SERVICES 6,524.90 579.00TWIN WEST CHAMBER OF COMMERCE ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPS 579.00 29,788.50UHL CO INC PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 31 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 31Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 16,380.75TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 17,413.75MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 63,583.00 3,196.90UNIFORMS UNLIMITED (PD)POLICE G & A POLICE EQUIPMENT 924.99SUPERVISORYOPERATIONAL SUPPLIES 542.47PATROLOPERATIONAL SUPPLIES 287.95COMMUNITY SERVICE OFFICER OPERATIONAL SUPPLIES 4,952.31 300.00UNITED STATES TREASURY EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTS 300.00 260.00UNITED WAY OF MINNEAPOLIS AREA EMPLOYEE FLEXIBLE SPENDING B/S UNITED WAY 260.00 424.32UNZE, EILEEN HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 424.32 128.41UPS STORE VEHICLE MAINTENANCE G&A POSTAGE 128.41 2,500.00URBAN COMPANIES ESCROWS DEMO / BROOKSIDE TRAFFIC 2,500.00 20.00US HEALTH WORKS MEDICAL GROUP HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 295.00HUMAN RESOURCES RECRUITMENT 315.00 1,557.74USA BLUE BOOK WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 1,088.14SEWER UTILITY G&A OTHER 2,645.88 24.36VAUGHAN, JIM ENVIRONMENTAL G & A OTHER IMPROVEMENT SUPPLIES 179.20ENVIRONMENTAL G & A MILEAGE-PERSONAL CAR 203.56 50.04VERIZON WIRELESS SEWER UTILITY G&A TELEPHONE 3,383.33CELLPHONES, IPADS, ETC.OFFICE EQUIPMENT 74.40CELLPHONES, IPADS, ETC.TELEPHONE 3,507.77 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 32 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2LOGIS400 32Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 250.54VIKING ELECTRIC SUPPLY PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 250.54 873.86VIKING INDUSTRIAL CTR ROUTINE MAINTENANCE OPERATIONAL SUPPLIES 2,249.73WATER UTILITY G&A OPERATIONAL SUPPLIES 3,123.59 718.00WARNING LITES OF MN INC SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 718.00 2,893.80WATER CONSERVATION SERVICE INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 2,893.80 138.50WEBER ELECTRIC WATER UTILITY G&A EQUIPMENT MTCE SERVICE 138.50 103.60WEST, JASON ORGANIZED REC G & A MILEAGE-PERSONAL CAR 103.60 643.14WESTWOOD HILLS NEIGHBORHOOD ASSN HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 643.14 665.17WHEELER HARDWARE GENERAL BUILDING MAINTENANCE GENERAL SUPPLIES 665.17 324.19WINDSCHITL, MARK OPERATIONS GENERAL SUPPLIES 324.19 600.00WRAP CITY GRAPHICS PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 600.00 72.00WS & D PERMIT SERVICE INSPECTIONS G & A BUILDING 72.00 98.00WSB ASSOC INC COUNTS AND STUDIES OTHER CONTRACTUAL SERVICES 1,762.00STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 1,860.00 15,221.44XCEL ENERGY GENERAL BUILDING MAINTENANCE ELECTRIC SERVICE 22.65OPERATIONSEMERGENCY PREPAREDNESS City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 33 5/27/2014CITY OF ST LOUIS PARK 6:33:11R55CKS2 LOGIS400 33Page -Council Check Summary - 5/23/20144/26/2014 Amount Vendor ObjectBU Description 27,045.90PUBLIC WORKS OPS G & A ELECTRIC SERVICE 31,532.79WATER UTILITY G&A ELECTRIC SERVICE 2,114.89REILLY BUDGET ELECTRIC SERVICE 3,391.97SEWER UTILITY G&A ELECTRIC SERVICE 1,920.48STORM WATER UTILITY G&A ELECTRIC SERVICE 3,347.64PARK MAINTENANCE G & A ELECTRIC SERVICE 21.16BRICK HOUSE (1324)ELECTRIC SERVICE 53.51WW RENTAL HOUSE (1322)ELECTRIC SERVICE 427.33WESTWOOD G & A GENERAL SUPPLIES 16,585.93ENTERPRISE G & A ELECTRIC SERVICE 101,685.69 942.00YESS!HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 942.00 100.00ZANDER, LOIS HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 100.00 4,001.01ZIEGLER INC PREVENTATIVE MAINTENANCE EQUIPMENT MTCE SERVICE 4,001.01 123.94ZIP PRINTING REFORESTATION GENERAL SUPPLIES 144.57AQUATIC PARK G & A PRINTING & PUBLISHING 1,001.12SEASON PASSES PRINTING & PUBLISHING 1,269.63 1,552.00ZWILLING, JAMES EMPLOYEE FLEX SPEND G&A TUITION 1,552.00 Report Totals 2,574,773.92 City Council Meeting of June 2, 2014 (Item No. 4d) Title: Approval of City Disbursements Page 34 Meeting: City Council Meeting Date: June 2, 2014 Boards and Commissions: 5a EXECUTIVE SUMMARY TITLE: Appointment of Citizen Representative to Boards and Commissions RECOMMENDED ACTION: Motion to appoint citizen representative Will Poulter as Youth Commissioner to the Human Rights Commission for a term which expires August 31, 2015. POLICY CONSIDERATION: Does the Council wish to appoint this individual to the Human Rights Commission for the term listed above? SUMMARY: City Council interviewed the applicant on May 27, 2014. After discussion, the Council was in agreement to recommend Mr. Poulter for appointment to serve as Youth Commissioner to the Human Rights Commission for a term which expires August 31, 2015. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: None Prepared by: Kay Midura – Office Assistant – City Clerk’s Office Reviewed by: Nancy Deno, Human Resources Director/Deputy City Manager Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: June 2, 2014 Action Agenda Item: 8a EXECUTIVE SUMMARY TITLE: Conditional Use Permit – D & D Autoworks RECOMMENDED ACTION: Motion to Adopt Resolution rescinding Resolution No. 7042 and approving the Conditional Use Permit (CUP) for D & D Autoworks to operate a motor vehicle service and repair facility at 6407 Lake Street, with conditions as recommended by staff. POLICY CONSIDERATION: Is the proposed CUP consistent with the Zoning Ordinance and the Comprehensive Plan? SUMMARY: The applicant and business owner Will DuBois is requesting a CUP to add two service bays to the existing service and repair facility. The property is zoned C-2 General Commercial and is guided Commercial in the Comprehensive Plan. The proposed project meets zoning and Comprehensive Plan requirements. D & D Autoworks was constructed in 1955. It currently has three service bays, and it is proposed to add two additional bays for a total of five. As part of the project, existing non-conformities such as landscaping, exterior building materials and rooftop screening will be brought into compliance with code. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Aerial Photo Draft Resolution Excerpt of Planning Commission Minutes Resolution No. 7042 (Existing Special Permit) Development Plans Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Sean Walther, Senior Planner Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of June 2, 2014 (Item No. 8a) Page 2 Title: Conditional Use Permit – D & D Autoworks DISCUSSION BACKGROUND: The building was constructed in 1955 as a motor service station which included the sale of fuel. The business is currently operating under a Special Permit that was approved on January 4, 1982. A copy of the Resolution is attached. Staff recommends that the Special Permit be rescinded in favor of the proposed CUP. Motor fuel sales ceased in 1992 and the fuel tanks were removed. Since then, the property has operated as a motor vehicle repair station only. ZONING ANALYSIS: The motor vehicle service and repair use is allowed by Conditional Use Permit (CUP) in the C-2 General Commercial Zoning District. There are some conditions specific to this land use that are required in addition to the standard zoning regulations. The conditions are discussed below starting with the standard zoning regulations. Setbacks: The required and proposed setbacks for the proposed building in the C-2 Zoning District are detailed in the table to the right. The 0.0 foot side and rear setbacks are allowed when the property is adjacent to another commercial property. The property next door is also zoned and used as a commercial property, therefore, the 0.0 foot side and rear setback is allowed to the south and southeast. The proposed additions meet the minimum setback requirements. Height: The maximum height in the C-2 Zoning District is six stories or 75 feet in height, whichever is less. The proposed height is 18 feet. The proposed addition meets the height limit. Parking: City Code requires at least four parking spaces per service bay for the motor vehicle repair use. The proposed addition will increase the number of service bays from three to five, therefore, at least 20 parking spaces are required. Required Yards Min Required Provided Front (Wooddale) 5 feet 46 feet Side abutting street (Lake St) 15 feet 39 feet Side (South East) 0 feet 16 feet Rear (South) 0 feet 2 feet Parking On-site (inside building) 5 spaces On-site (outside building) 16 spaces On-street 3 spaces Total Provided: 24 spaces Total Required: 20 spaces City Council Meeting of June 2, 2014 (Item No. 8a) Page 3 Title: Conditional Use Permit – D & D Autoworks The five service bays count toward the required parking spaces leaving 15 spaces needed to meet code. The plan provides more than the needed 15 spaces by showing 16 spaces in the parking lot and an additional three on-street spaces that count toward the required number of spaces. Therefore, as shown in the chart above, the plan provides a total of 24 parking spaces, which is four more than the 20 parking spaces required by code. Landscaping: The landscaping ordinance requires one tree per 50 feet of site perimeter, which translates to 12 trees. There are eight trees on the landscaping plan, and the remaining four trees will be contributed to the city tree fund for planting in city parks and right-of-ways. Shrubs and a three foot tall screening fence will be installed along the perimeter of the site to screen the parking lot from street views. The shrubs and fence will not be planted at the corner of Wooddale Ave and Lake St to preserve views around the intersection as required by code. Architectural: The existing building consists primarily of painted concrete block, glass and stone accents. The building will be brought into compliance with architectural ordinance which requires at least 60% class 1 material on each elevation and no more than 40% of class 2 and no more than 10% of class 3 on each elevation. Class1 materials proposed for the building include glass, concrete stucco and stone accent. The remaining approximately 40% of each elevation will consist of Class 2 materials such as integral colored concrete block. The building meets the architectural regulations as shown in the chart. The proposed plan meets the architectural regulations. CONDITIONAL USE PERMIT REVIEW: Special Conditions for Motor Vehicle Service and Repair: Motor Vehicle Service and Repair uses are subject to the following conditions above and beyond standard zoning regulations: 1. No public address system shall be audible from any parcel that is zoned residential and used or subdivided for residential, or has an occupied institutional building, including but not limited to schools, religious institutions, and community centers. A public address system will not be utilized. This condition is included in the draft resolution. 2. All repair, assembly, disassembly and maintenance of vehicles shall be inside a closed building except tire inflation, changing wipers or adding oil. The use will comply with this requirement. This condition is included in the draft resolution. Elevation Class 1 Class 2 Class3 Northwest 72% 28% Northeast 60% 37% 3% Southeast 60% 40% Southwest 85% 15% City Council Meeting of June 2, 2014 (Item No. 8a) Page 4 Title: Conditional Use Permit – D & D Autoworks 3. Test driving shall be prohibited on any street in an R or O district. The use has been in operation since 1955, and there are no complaints on record. Test driving typically occurs on Lake Street and Wooddale. This condition is included in the draft resolution. 4. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial or shall be otherwise located so that access can be provided without generating significant traffic on local residential streets. Access is off of both Wooddale Ave and Lake St. Both streets are classified as Major Collectors. This condition is met. 5. The building housing the use shall be located a minimum of 100 feet from any parcel that is zoned residential and used or subdivided for residential use, or has an occupied institutional building, including but not limited to schools, religious institutions, and community centers. In the case of an automatic carwash where the vehicular entrance and exit doors do not face said parcel within 100 feet, the building shall be located a minimum of 95 feet from said parcel that is zoned residential and used or subdivided for residential use, or has an occupied institutional building, including but not limited to schools, religious institutions, and community centers. The closest residential property is to the east, and is located 150 feet away. The St. Louis Park High School football stadium property is located to the south of the property, and is approximately 170 feet away. This condition is met. 6. The use is in conformance with the Comprehensive Plan including any provisions of the redevelopment chapter and the plan by neighborhood policies for the neighborhood in which it is located and conditions of approval may be added as a means of satisfying this requirement. The property is guided Commercial in the Comprehensive Plan. The Sorenson plan by neighborhood chapter calls for sidewalk connections and investment in commercial properties. The subject property already has sidewalks along both Lake St and Wooddale Ave, so additional sidewalk connections are not required. The overall appearance of the building will be substantially improved as a result of this project by bringing the building into compliance with the architectural ordinance while respecting 1950s fuel station architecture. PLANNING COMMISSION REVIEW: The Planning Commission held a public hearing on May 7, 2014 regarding this CUP. No one attended to comment on the application. The Planning Commission recommended approval of the Conditional Use Permit with conditions, by a vote of 6–0. An excerpt of the Planning Commission meeting minutes is attached. City Council Meeting of June 2, 2014 (Item No. 8a) Page 5 Title: Conditional Use Permit – D & D Autoworks Aerial Photo City Council Meeting of June 2, 2014 (Item No. 8a) Page 6 Title: Conditional Use Permit – D & D Autoworks RESOLUTION NO. 14-____ A RESOLUTION RESCINDING RESOLUTION NO. 7042 AND GRANTING CONDITIONAL USE PERMIT UNDER SECTION 36-194(d)(3) OF THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING TO PERMIT CONSTRUCTION OF ADDITION FOR PROPERTY ZONED C-2 GENERAL COMMERCIAL DISTRICT LOCATED AT 6407 LAKE STREET BE IT RESOLVED BY the City Council of the City of St. Louis Park: Findings 1. Loni Strassman and Will DuBois have made application to the City Council for a Conditional Use Permit under Section 36-1194(d)(3) of the St. Louis Park Ordinance Code for the purpose of construction of an addition within a C-2 General Commercial District located at 6407 Lake Street for the legal description as follows, to-wit: Tracts A, B and C, of Registered Land Survey No. 450 and Lot 1, Block 1, Rearrangement of St. Louis Park, including adjacent vacated alley and including that part of adjacent vacated Dakota Venue, Hennepin County, Minnesota 2. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 14-09) and the effect of the proposed addition on the health, safety and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on values of properties in the surrounding area, the effect of the use on the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance. 3. The Council has determined that the addition will not be detrimental to the health, safety, or general welfare of the community nor will it cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values, and the proposed addition is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan. 4. The contents of Planning Case File 14-09-CUP are hereby entered into and made part of the public hearing record and the record of decision for this case. Conclusion The Conditional Use Permit to permit a motor vehicle service and repair facility at the location described is granted based on the findings set forth above and subject to the following conditions: 1. The site shall be developed, used and maintained in conformance with the Official Exhibits. a. Exhibit A: Site Plan b. Exhibit B: Landscaping Plan c. Exhibit C: Elevations d. Exhibit D: Floor Plan 2. Four trees will be dedicated to the city tree fund. 3. Use of a public address system is prohibited. City Council Meeting of June 2, 2014 (Item No. 8a) Page 7 Title: Conditional Use Permit – D & D Autoworks 4. All repair, assembly and disassembly shall occur inside the building. The exception is simple tasks such as replacing batteries, and windshield fluid and wipers. 5. Vehicles shall not be test driven on residential streets. 6. All necessary permits must be obtained, including from the Minnehaha Creek Watershed District (MCWD). 7. The site shall meet all fire lane requirements. 8. The applicant shall comply with the following conditions during construction: a. The site shall be kept free of dust and debris that could blow onto neighboring properties. b. Public streets shall be maintained free of dirt and shall be cleaned as necessary. c. The Zoning Administrator may impose additional conditions if it becomes necessary in order to mitigate the impact of construction on surrounding properties. 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. Under the Zoning Ordinance Code, this permit shall be revoked and cancelled if the building or structure for which the conditional use permit is granted is removed. Assent form and official exhibits must be signed by applicant (or applicant and owner if applicant is different from owner) prior to issuance of a building permit. Approval of a Building Permit, which may impose additional requirements. 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 2, 2014 City Manager Mayor Attest: City Clerk City Council Meeting of June 2, 2014 (Item No. 8a) Page 8 Title: Conditional Use Permit – D & D Autoworks EXCERPT OF UNOFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA May 7, 2014 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Lisa Peilen, Richard Person, Joe Tatalovich MEMBERS ABSENT: Carl Robertson, Charlie Dixon (youth member) STAFF PRESENT: Gary Morrison, Meg McMonigal, Nancy Sells 3. Public Hearings A. D & D Autoworks – Conditional Use Permit Location: 6407 W. Lake Street Applicant: Loni Strassman and Will DuBois Case No.: 14-09-CUP Gary Morrison, Assistant Zoning Administrator, presented the report. He stated that the applicant would like to construct two additional service bays, add some landscaping, screen some rooftop equipment, meet architectural material regulations, and rescind the existing Special Permit. Commissioner Kramer asked if there would be any changes to signage on the property. Mr. Morrison said signage is not a part of the application. He said a sign permit would be required if additional signage was requested. Commissioner Kramer said anything the applicant could do to make the signage look more contemporary would be appreciated. Commissioner Kramer suggested that replacing windshield fluid be added to condition 5 as an allowed outdoor task. Loni Strassman, architect, said he would take any questions regarding drawings or the presentation. Chair Carper opened the public hearing. As no one was present wishing to speak he closed the public hearing. Commissioner Person made a motion to recommend approval of the Conditional Use Permit (CUP) subject to conditions recommended by staff. Commissioner Kramer seconded the motion, and the motion passed on a vote of 6-0. City Council Meeting of June 2, 2014 (Item No. 8a) Title: Conditional Use Permit – D & D AutoworksPage 9 City Council Meeting of June 2, 2014 (Item No. 8a) Title: Conditional Use Permit – D & D AutoworksPage 10 City Council Meeting of June 2, 2014 (Item No. 8a) Title: Conditional Use Permit – D & D AutoworksPage 11 City Council Meeting of June 2, 2014 (Item No. 8a) Title: Conditional Use Permit – D & D AutoworksPage 12 City Council Meeting of June 2, 2014 (Item No. 8a) Title: Conditional Use Permit – D & D AutoworksPage 13 City Council Meeting of June 2, 2014 (Item No. 8a) Title: Conditional Use Permit – D & D AutoworksPage 14 Meeting: City Council Meeting Date: June 2, 2014 Action Agenda Item: 8b EXECUTIVE SUMMARY TITLE: Preliminary/Final Plat of Frauenshuh Addition RECOMMENDED ACTION: Motion to Adopt Resolution approving the Preliminary and Final Plat of Frauenshuh Addition, with conditions as recommended by Planning Commission and staff. POLICY CONSIDERATION: Is the proposed plat consistent with the Subdivision Ordinance and the Comprehensive Plan? SUMMARY: The applicant is requesting a Preliminary and Final Plat of Frauenshuh Addition. The purpose of the plat is to split the one unplatted parcel into two platted lots. The property is improved with two buildings, the Park Nicollet Diagnostic Imaging Center (4951 Excelsior Blvd) and the Wells Fargo Bank building (4959 Excelsior Blvd). If the plat is approved, then the imaging center will be on Lot 1, and the Wells Fargo Bank building will be on Lot 2. The plat meets all subdivision and zoning regulations. A sidewalk will be installed along the west side of Quentin Ave as required by the subdivision ordinance. No other improvements or construction are anticipated as a result of this plat. The park dedication for the platting of commercial property is 5% of the land value (not including buildings) which is equal to $105,450. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Aerial Photo Draft Resolution Excerpt of Planning Commission Minutes Development Plans Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Sean Walther, Senior Planner Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of June 2, 2014 (Item No. 8b) Page 2 Title: Preliminary/Final Plat of Frauenshuh Addition DISCUSSION BACKGROUND: The subject property is located in the Minikahda Vista Neighborhood. The Imaging Center was constructed in 1990, and occupies the east half of the property. Its parking lot accesses from Quentin Ave. The Bank was constructed in 1999, and occupies the west half of the property. Its parking lot is located behind the building and also has access to Quentin Ave. It has a drive-through on the east side of the building that exits to Excelsior Blvd. ZONING ANALYSIS: Existing Conditions: The property is unplatted, and is 118,809 square feet in area. It has frontage on both Excelsior Blvd and Quentin Ave. It has two driveway accesses off of Quentin Ave, and one exit-only onto Excelsior Blvd. Preliminary Plat: The plat proposes to subdivide the existing parcel into two lots. Lot 1 contains the imaging center, and lot two contains the bank. City Council Meeting of June 2, 2014 (Item No. 8b) Page 3 Title: Preliminary/Final Plat of Frauenshuh Addition 1. Lot Size: The property is zoned C-2 General Commercial. This district does not have a minimum lot size. A breakdown of the lot sizes follows: Lot Size Lot 1 41,062 sf Diagnostic Imaging Center Lot 2 61,002 sf Wells Fargo Bank R.O.W. Dedication 16,745 sf Total 118,809 sf 2. Zoning Compliance: The lot split cannot result in a non-conformity to the zoning regulations. Therefore, the preliminary plat was reviewed for compliance to the zoning regulations. Staff determined that the plat is in compliance to the zoning regulations. A summary of the findings follows: Regulation Proposed Setback-Side 0.0 feet between two commercial properties. Imaging Center minimum side setback is 5.0 feet. Bank minimum side setback is 50.0 feet from the building and 2.0 feet from the canopy. Setback-Rear 0.0 feet between two commercial properties. Imaging Center minimum rear setback is 20.0 feet. Bank minimum rear setback is 265 feet. Floor Area Ratio (FAR) 2.0 maximum allowed Imaging Center = 0.36 Bank = 0.22 North City Council Meeting of June 2, 2014 (Item No. 8b) Page 4 Title: Preliminary/Final Plat of Frauenshuh Addition 3. Access/Parking Easements: Cross parking/access easements will be provided over the following: A portion of the imaging center’s parking space which is located on the bank property. The drive-through lane which is partially located on the imaging center’s property. The driveway off of Quentin Ave servicing the bank building which is partially located on the imaging center’s property. The easements are included as a condition of approval in the draft resolution. 4. Sidewalk: The subdivision ordinance requires a sidewalk be constructed along all public streets when a property is platted. There is already a sidewalk along Excelsior Blvd, but there is not one along Quentin Ave. Therefore, a sidewalk is proposed along Quentin Ave. Coincidentally, a sidewalk already exists on Quentin Ave south of this property, so this section to be constructed as a result of this plat, will fill in the remaining gap that will connect the neighborhood to Excelsior Blvd. Sidewalk easements must be provided over all sections of the plat where the public sidewalk is located on private property. This is included as a condition of approval in the draft resolution. 5. Park Dedication. The plat is subject to the park dedication of 5% of current market value of the land as determined by the City Assessor. Park dedication is required to be paid prior to the City releasing the plat. This is included as a condition of approval in the draft resolution. PLANNING COMMISSION REVIEW: The Planning Commission held a public hearing on May 7, 2014 regarding this preliminary plat. No one attended to comment on the application. The Planning Commission expressed concern that the trees along Quentin be preserved as best as possible, and replaced as required if lost as a result of the construction of the side walk. The Planning Commission recommended approval of the Preliminary and Final Plat of Frauenshuh Addition conditions, by a vote of 6–0. An excerpt of the Planning Commission meeting minutes is attached. City Council Meeting of June 2, 2014 (Item No. 8b) Page 5 Title: Preliminary/Final Plat of Frauenshuh Addition Aerial Photo City Council Meeting of June 2, 2014 (Item No. 8b) Page 6 Title: Preliminary/Final Plat of Frauenshuh Addition RESOLUTION NO. 14-____ RESOLUTION APPROVING THE PRELIMINARY AND FINAL PLAT OF FRAUENSHUH ADDITION BE IT RESOLVED BY the City Council of St. Louis Park: Findings 1. DRF Dental Buildings, LLC, owners and subdividers of the land proposed to be platted as Frauenshuh Addition have submitted an application for approval of preliminary and final plat of said subdivision in the manner required for platting of land under the St. Louis Park Ordinance Code, and all proceedings have been duly had thereunder. 2. The proposed preliminary and final plat has been found to be in all respects consistent with the City Plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park. 3. The proposed plat is situated upon the following described lands in Hennepin County, Minnesota, to-wit: ATTACHED Conclusion 1. The proposed preliminary and final plat of Frauenshuh Addition is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, provided, however, that this approval is made subject to the opinion of the City Attorney and Certification by the City Clerk subject to the following conditions: a. Prior to the City signing the plat, the following conditions shall be met: i. A public sidewalk will be constructed along the entire east property line along Quentin Ave. ii. Copies of the sidewalk, access and parking easements shall be provided to the City. The easements shall be recorded with the plat. iii. Park dedication in the amount of $105,450 shall be submitted to the City. iv. A $1,000 escrow shall be submitted to the City to guarantee installation of the corner iron monuments and returning a Mylar copy of the plat to the City. b. The developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. 2. The City Clerk is hereby directed to supply two certified copies of this Resolution to the above-named owner and subdivider, who is the applicant herein. 3. The Mayor and City Manager are hereby authorized to execute all contracts required herein, and the City Clerk is hereby directed to execute the certificate of approval on behalf of the City Council upon the said plat when all of the conditions set forth in Paragraph No. 1 above and the St. Louis Park Ordinance Code have been fulfilled. City Council Meeting of June 2, 2014 (Item No. 8b) Page 7 Title: Preliminary/Final Plat of Frauenshuh Addition 4. Such execution of the certificate upon said plat by the City Clerk, as required under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such plat to be placed on record forthwith without further formality. 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 2, 2014 City Manager Mayor Attest: City Clerk City Council Meeting of June 2, 2014 (Item No. 8b) Page 8 Title: Preliminary/Final Plat of Frauenshuh Addition EXCERPT OF UNOFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA May 7, 2014 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Lisa Peilen, Richard Person, Joe Tatalovich MEMBERS ABSENT: Carl Robertson, Charlie Dixon (youth member) STAFF PRESENT: Gary Morrison, Meg McMonigal, Nancy Sells 3. Public Hearings B. Preliminary and Final Plat of Frauenshuh Addition Location: 4951 & 4959 Excelsior Boulevard Applicant: DRF Dental Buildings, LLC Case No.: 14-10-S Gary Morrison, Assistant Zoning Administrator, presented the staff report. He said there are two existing buildings on the property, the Diagnostic Imaging Center (DIC) and a Wells Fargo Bank. The imaging center is on proposed Lot 1 and the bank is on proposed Lot 2. Mr. Morrison stated that as a result of a subdivision a non-conformity cannot be created. All buildings on the property have to meet the setbacks to the new property line. Because the imaging center is commercial property adjacent to commercial property there isn’t a minimum setback requirement. The applicant is proposing a 5 ft. setback. So there will be room for sidewalk alongside the building. The bank itself is a lot further away from the property line at about 50 ft. Mr. Morrison discussed the canopy for the drive-thru which comes within 2 feet of the property line. Mr. Morrison described the access/parking easements which will be provided and recorded with the plat. Mr. Morrison said as a result of the subdivision a sidewalk will be installed from Excelsior Blvd. down to the end of the property. This will also fill in a gap that is missing for sidewalk. Chair Carper asked if the imaging center and the bank are tenants of DRF Dental Buildings. Mr. Morrison responded they are tenants. He said the applicant could explain the relationship between the entities. Commissioner Johnston-Madison asked if the sidewalk gap was addressed in Connect the Park. She said there was a concern about the trees along the gap which protect the residents to some degree on Quentin from viewing the bank, parts of Miracle Mile and the parking lot. She said prior to City Council consideration she would like to be able to let the neighbors know what is going to happen regarding the trees. City Council Meeting of June 2, 2014 (Item No. 8b) Page 9 Title: Preliminary/Final Plat of Frauenshuh Addition Commissioner Person asked if the subdivision would be an opportunity to require additional landscaping. He said the report indicated that no new construction, renovation or redevelopment is proposed with the application. He asked if there are any plans for redevelopment that staff is aware of. Mr. Morrison responded the application is strictly a subdivision application and staff is not aware of any proposed redevelopment. Meg McMonigal, Planning and Zoning Supervisor, discussed the cross access easement. She said both properties will be able to use each other’s property to circulate around the site as it is a very tight site. Ross Hedlund, Frauenshuh, explained that the bank building has a dental clinic on the 2nd floor and the ownership of that building is in partnership with Frauenshuh. Commissioner Johnston-Madison asked the applicant if there are any redevelopment plans. Mr. Hedlund said there are no plans currently. He added that the reason for the subdivision is that the property is currently under a land lease and the subdivision would allow for a change in ownership. Chair Carper opened the public hearing. As no one was present wishing to speak he closed the public hearing. Commissioner Johnston-Madison asked what height would be allowed on the imaging center site if redevelopment were to occur. Mr. Morrison said the property is zoned C-2 which allows several stories. He added that the limiting factor is always parking. The site is currently parked out. Even adding a second story would require a significant amount of parking. Commissioner Person asked that tree replacement along the east property line be addressed in the conditions of approval. Mr. Morrison said under the ordinance there is a replacement requirement. Commissioner Johnston-Madison spoke about tree survival and the sidewalk. She said she didn’t think there was enough room on the other side to plant additional trees. Mr. Morrison said it is a priority to keep the tree replacement in the same location as much as possible. He said the green area would be utilized for tree replacement. Commissioner Johnston-Madison asked that more information on this be provided to the affected residents. Mr. Morrison said staff would look at the issue prior to City Council consideration. He said the sidewalk and landscape isn’t designed at this point but planning staff will discuss it with engineering and environmental staff to see what can fit in. Commissioner Kramer made a motion to recommend approval of the Preliminary and Final Plat of Frauenshuh Addition, subject to conditions recommended by staff. Commissioner Peilen seconded the motion, and the motion passed on a vote of 6-0. City Council Meeting of June 2, 2014 (Item No. 8b) Title: Preliminary/Final Plat of Frauenshuh AdditionPage 10 City Council Meeting of June 2, 2014 (Item No. 8b) Title: Preliminary/Final Plat of Frauenshuh AdditionPage 11 City Council Meeting of June 2, 2014 (Item No. 8b) Title: Preliminary/Final Plat of Frauenshuh AdditionPage 12