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2012/06/18 - ADMIN - Agenda Packets - City Council - Regular
AGENDA JUNE 18, 2012 6:30 p.m. SPECIAL STUDY SESSION – Council Chambers Discussion Item 1. 6:30 p.m. 2011 Financial Statements – Auditors Discussion and Review 7:20 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Minutes June 4, 2012 4. Approval of Agenda 5. Reports 5a. EDA Vendor Claims 6. Old Business -- None 7. New Business 7a. Structurally Substandard Building Designation – 9920 Wayzata Blvd (Former Santorini’s Property Recommended Action: Motion to Adopt EDA Resolution finding the building located at 9920 Wayzata Boulevard structurally substandard to a degree requiring substantial renovation or clearance. 8. Communications 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. 2011 Financial Statements – Auditors Presentation and Discussion 3. Approval of Minutes 3a. Study Session Meeting Minutes May 29, 2012 3b. Special City Council/Closed Executive Session Meeting Minutes June 4, 2012 3c. City Council Meeting Minutes June 4, 2012 Meeting of June 18, 2012 City Council Agenda 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5. Boards and Commissions -- None 6. Public Hearings -- None 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Project Report: Traffic Signal Project - Park Center Boulevard at Park Summit - Project #2012-1306 Recommended Action: Motion to Adopt Resolution accepting the project report, establishing Improvement Project No. 2012-1306, approving plans and specifications and authorizing advertisement for bids for Improvement Project No. 2012-1306. 8b. Constitutional Amendment – Photo Identification for Voting Recommended Action: Motion to Adopt Resolution opposing the proposed “Photo Identification Required for Voting” Constitutional Amendment. 8c. Wildlife Feeding Ordinance Amendment - 1st Reading Recommended Action: Motion to Adopt First Reading of an Ordinance to approve Changes to Chapter 4 and Chapter 12 of the City Code relating to the feeding of wildlife and to set Second Reading for July 16, 2012. 8d. Miscellaneous Licensing and Nuisance Ordinance – 1st Reading Recommended Action: Motion to Adopt First Reading of Ordinance approving Changes to Chapter 8 regarding Businesses and Licenses and Chapter 12 for Nuisance Abatement and Assessment. 9. Communication SPECIAL STUDY SESSION cont. – Council Chambers (Immediately Following City Council Meeting) Discussion Item 2. Storm Water Follow Up – Bass Lake Improvements 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. Meeting of June 18, 2012 City Council Agenda CONSENT CALENDAR 4a. Designate Bituminous Roadways, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $337,515.00 for the 2012 MSA Street Improvement Project, Project No. 2011-1100 4b. Adopt Resolution authorizing “No Parking” signs along the segment of Highway 169 Frontage Road that Mn/DOT is turning back to the City between 22nd Street and 23rd Street and the removal of the existing “Stop” signs at the intersection of Highway 169 Frontage Road at 22nd Street, 22nd Lane and 23rd Street 4c. Adopt Resolution ordering the abatement of the hazardous building located at 9920 Wayzata Boulevard 4d. Approve a Temporary On-Sale Intoxicating Liquor License for Church of the Holy Family at 5900 & 5925 West Lake Street for August 18, 2012 4e. Approve a Temporary On-Sale Intoxicating Liquor License for St. Louis Park Public Schools Foundation, Box 26393, in St. Louis Park for an event to be held on September 29, 2012, at Warehouse Winery 4f. Adopt Resolution authorizing final payment in the amount of $117,561.05 and accepting work for the 2011 Local Street Rehabilitation - Pavement Management Area 7 Repair with Valley Paving, Inc. Project No. 2010-1000, City Contract No. 46-11 4g. Adopt Resolution accepting a donation from George and Pat Foulkes in the amount of $1,000 for benches to be installed by the new pond area in front of Westwood Hills Nature Center 4h. Adopt Resolution revising parking restrictions along the North Frontage Road of County Road 25 from Ottawa Avenue to Raleigh Avenue 4i. Approve for Filing Vendor Claims 4j. Approve for Filing Housing Authority Minutes of April 9, 2012 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 Date: June 16, 2012 Agenda Item #: 1 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: 2011 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 Comprehensive Annual Financial Report (CAFR), Communication with Those Charged with Governance, Report on Compliance and Report on Internal Control for the year ended December 31, 2011. 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 Report on Internal Control for the year ended December 31, 2011 to allow for effective decision making? • Would the Council desire to have any follow-up discussion on the Audit? BACKGROUND: 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 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. The City received a clean audit opinion, or “unqualified 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, 2011. 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 28 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in a strong financial condition. VISION CONSIDERATION: Not directly applicable. Attachments: 1) 2011 - Comprehensive Annual Financial Report 2) 2011 - Communication with Those Charged with Governance 3) 2011 – Reports on Compliance and Internal Controls 4) 2011 - Audit Review 5) 2011 - St. Louis Park Financial Summary Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager, City Manager CITY OF ST. LOUIS PARK, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 Thomas Harmening – City Manager Prepared by: Department of Finance Member of the Government Finance Officers’ Association Of the United States and Canada Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 2 - This page intentionally left blank - Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 3 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 9 Organizational Chart 11 Elected Officials and Staff 12 II. FINANCIAL SECTION Independent Auditor's Report 15 Management's Discussion and Analysis 17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets Statement 1 31 Statement of Activities Statement 2 32 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 34 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Statement 4 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 39 Statement of Net Assets - Proprietary Funds Statement 6 40 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement 7 42 Statement of Cash Flows - Proprietary Funds Statement 8 44 Notes to Financial Statements 49 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 88 Budgetary Comparison Schedule - Park and Recreation Fund Statement 10 92 Schedule of Funding Progress for the Postemployment Benefit Plan Statement 11 93 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 4 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 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Statement 13 99 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Statement 15 103 Capital Projects Funds: Combining Balance Sheet - Nonmajor Capital Projects Funds Statement 16 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects Funds Statement 17 107 Debt Service Funds: Combining Balance Sheet - Major Debt Service Funds Statement 18 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Major Debt Service Funds Statement 19 113 Redevelopment District Funds: Combining Balance Sheet - Major Redevelopment District Funds Statement 20 119 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Major Redevelopment District Funds Statement 21 123 Internal Service Funds: Combining Statement of Net Assets Statement 22 128 Combining Statement of Revenues, Expenditures and Changes in Fund Net Assets Statement 23 131 Combining Statement of Cash Flows Statement 24 132 General Fund: Balance Sheet Statement 25 138 Summary Financial Report: Schedule of Revenues and Expenditures for General Operations - Governmental Funds Statement 26 139 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 5 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Assets by Component Table 1 142 Changes in Net Assets Table 2 144 Governmental Activities Tax Revenues by Source Table 3 149 Fund Balances of Governmental Funds Table 4 150 Changes in Fund Balances - Governmental Funds Table 5 152 Revenue Capacity: Assessed Value/Tax Capacity Value and Estimated Market Values of all Taxable Property Table 6 154 Property Tax Rates - Direct and Overlapping Governments Table 7 156 Principal Property Taxpayers Table 8 157 Property Tax Levies and Collections Table 9 158 Debt Capacity: Ratios of Outstanding Debt By Type Table 10 159 Ratios of General Bonded Debt Outstanding Table 11 160 Direct and Overlapping Governmental Activities Debt Table 12 161 Legal Debt Margin Information Table 13 162 Pledged-Revenue Bond Coverage Table 14 164 Demographic and Economic Information: Demographic Statistics Table 15 165 Principal Employers Table 16 166 Operating Information: Full-Time Equivalent Employees by Function Table 17 167 Operating Indicators by Function Table 18 168 Capital Asset Statistics by Function Table 19 169 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 6 - This page intentionally left blank - Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 7 I. INTRODUCTORY SECTION 1 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 8 - This page intentionally left blank - 2 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 9 June 1, 2012 Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Minnesota statutes require all cities to issue an annual report on its financial position and activity prepared in accordance with generally accepted accounting principles (GAAP), and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants, or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of St. Louis Park for the fiscal year ended December 31, 2011. This report consists of management’s representations concerning the finances of the City of St. Louis Park. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of St. Louis Park established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation for the City of St. Louis Park’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of St. Louis Park’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of St. Louis Park’s financial statements have been audited by HLB Tautges Redpath, Ltd., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of St. Louis Park for the fiscal year ended December 31, 2011, are free of any material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of St. Louis Park’s financial statements for the fiscal year ended December 31, 2011, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. 3 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 10 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 44,665. The City of St. Louis Park is empowered to levy a property tax on both real and personal properties located within its boundaries. While it also is empowered by state statutes to extend its corporate limits by annexation, St. Louis Park is a completely developed community and is bordered on all sides by other incorporated communities. St. Louis Park operates under the council/manager form of government. Policy-making and legislative authority are vested in a City Council consisting of a mayor, two at-large council members, and four ward council members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the council, for overseeing the day-to-day operations of the City government, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four-year staggered terms. The City of St. Louis Park provides a full range of services, including police and fire protection; redevelopment, the construction and maintenance of highways, streets, and other infrastructure; water, sewer, storm water, and refuse services as well as recreational activities and cultural events. The annual budget serves as the foundation for the City of St. Louis Park’s financial planning and control. All departments and agencies of the City of St. Louis Park submit requests for appropriation to the City Manager in July of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review prior to adoption of a preliminary tax levy by September 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 and park and recreation special revenue fund for which appropriated annual budgets have been adopted. These comparisons are presented starting on page 88 as part of the basic financial statements for the governmental funds. 4 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 11 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 – This is a major 39-acre, mixed use redevelopment located at the southwest quadrant of I-394 and Highway 100. The first phase was constructed in 2009 and consists of a 350,000 square feet “lifestyle” shopping center. This complex features a variety of specialty restaurants (13 total), numerous stores and fashion boutiques, a 14- screen movie theater, a grocery store and 28,000 square feet of 2nd story office space. To date, approximately 85% of the rentable space has been leased. Integrated into the center are indoor and outdoor public gathering places that include public art, a community room, a police sub-station, a 5-level parking ramp and a block-long, heated, underground garage. Construction on the second phase; an upscale 5-story apartment building called The West End Apartments, has been started. It will feature 120 stylish units, structured underground parking and a party deck. The market rate units expected to be available in the summer of 2013. 5 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 12 The final phase has preliminary approval and is still in the planning stages. It will include 1.1 million square feet of office space distributed between three or four office buildings. Construction on the first office building is expected to begin within the next several years. 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, as well as construction of 420 multi-family housing units and 25,000 square feet of retail space. To date, all the public elements have been completed and 298 of the housing units have been constructed and are currently leased. In the summer of 2012, construction is scheduled to begin on the final two elements: a five–story, 100 unit apartment building called The Adagio and 22 row homes called Medley Row. Both projects are expected to be completed by the end of 2013. e2 - (Ellipse on Excelsior II) – Given the success of the Ellipse on Excelsior, the redeveloper of that project is planning to embark on a second phase next door. It will be a stylish 5 –story apartment building with 58 upscale apartment units with structured parking. Construction on e2 is expected to begin fall of 2012 and will likely be completed in spring 2014. Wooddale Pointe – Another 5-story mixed-use development consisting of 115 senior assisted living apartments with 10,000 square feet of commercial retail at street level upon completion. Construction on this project began in the summer of 2011 and is scheduled to be completed at the end of 2012. 36 Park Apartments – Currently under construction is a 10-story, 192 unit apartment building at the southeast corner of 36th Street and Park Center Blvd. This upscale, market rate building called 36 Park is scheduled to be completed in the spring of 2013. 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. In addition, the City also created a Convention and Visitors Bureau (CVB) in 2011, which markets the desirability of St. Louis Park for both business and recreational opportunities. Finally, the City of St. Louis Park constructed two fire stations to replace the two existing ones. The City issued Build America Bonds in December 2010 and also utilized available cash to finance the construction. The first fire station was completed in March 2012, and the second was completed in May 2012. Both facilities are technologically advanced, can accommodate the latest firefighting apparatus and are built in accordance with the City’s newly adopted Green Building Policy. 6 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 13 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 is used in conjunction with the annual budget process and allows the City Council to evaluate the sustainability of various budget decisions prior to adoption. This plan has proven its value by playing a significant role in achieving a bond rating upgrade to “AAA” from Standard & Poor’s in November, 2008 and keeping the costs of borrowing for the City of St. Louis Park at an extremely low rate. Awards The Government Finance Officers Association (GFOA) awarded a certificate of Achievement for Excellence in Financial Reporting to the City of St. Louis Park for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2010. This was the twenty-eighth consecutive year that the government has received this prestigious award. In order to be awarded a certificate of Achievement, the government published an easily readable and efficiently organized CAFR. The report satisfied 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 CAFR 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. 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 Steven Heintz City Manager Finance Supervisor 7 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 14 - This page intentionally left blank - 8 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 15 9 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 16 - This page intentionally left blank - 10 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 17 SERVICES CHART Citizens City Council City Manager Boards & Commissions y Board of Zoning Appeals y Human Rights y Planning y Police Advisory y Fire Civil Service y Parks & Recreation y Telecommunications Advisory 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 PARKS & RECREATION Rec Programming Park Maintenance Environmental Nature Center Recreation Center Park Improvements Vehicle Maintenance POLICE Patrol Support Services Crime Prevention 911 Dispatch Animal Control Community Outreach & Neighborhoods PUBLIC WORKS Engineering Utility Operations Streets/Traffic Refuse/Recycling FIRE Fire Prevention Fire Suppression EMS/Rescue Emergency Preparedness Auditors Legal Charter Commission Economic Development Authority Housing Authority 11 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 18 OFFICIALS OF THE CITY OF ST. LOUIS PARK Council Jeff Jacobs Mayor EDA Commissioner Term Expires 1/2012 Paul Omodt At-Large A Councilmember EDA Vice President Term Expires 1/2012 Phillip Finkelstein At-Large B Councilmember EDA President Term Expires 1/2012 Susan Sanger Ward 1 Councilmember EDA Commissioner Term Expires 1/2014 Mayor Pro-tem Anne Mavity Ward 2 Councilmember EDA Commissioner Term Expires 1/2014 Sue Santa Ward 3 Councilmember EDA Treasurer Term Expires 1/2014 Julia Ross Ward 4 Councilmember EDA Commissioner Term Expires 1/2014 Executive Staff Thomas Harmening, City Manager Nancy Deno Gohman, Deputy City Manager/Human Resources Director Clint Pires, Chief Information Officer Kevin Locke, Community Development Director Brian Swanson, Controller Luke Stemmer, Fire Chief Brian Hoffman, Inspections Director Cindy Walsh, Parks and Recreation Director John Luse, Police Chief Michael Rardin, Public Works Director 12 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 19 II. FINANCIAL SECTION 13 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 20 - This page intentionally left blank - 14 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 21 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 22 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 23 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, 2011. 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 $192,331,918 (net assets). Of this amount, $52,453,172 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. • The government’s total net assets increased by $5,579,953. • As of the close of the current fiscal year, the City of St. Louis Park’s governmental funds reported combined ending fund balances of $63,114,780. Approximately 82 percent of this amount, $51,652,474 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 $10,799,829 (46 percent) of the total subsequent year budgeted General fund expenditures. • The City of St. Louis Park’s total bonded debt decreased by $6,200,000 (14 percent) during the current fiscal year. The City retired the series 1999A and 2000 G.O. Improvement Bonds. The City did not issue debt in 2011. Principal paid during the year was $6,200,000. 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. 17 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 24 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 assets presents information on all of the City of St. Louis Park’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the most recent fiscal year. All changes in net assets 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 works, public information, culture and recreation, 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 water, sanitary sewer, storm water, and solid waste operations. 18 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 25 City of St. Louis Park Management’s Discussion and Analysis The government-wide financial statements start on page 31 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 nine 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 its General fund and Parks and Recreation fund. Budgetary comparison statements are provided for the General fund and Parks and Recreation fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 34 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 water, sanitary sewer, storm water, and solid waste 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 water, sanitary sewer, storm water, and solid waste operations, all of which are considered to be major funds of the City of St. Louis Park. 19 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 26 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, and 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 40 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 49 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 98 of this report. Other reports – Additional information related to the General fund starts on page 138 of this report. Government-wide Financial Analysis As noted earlier, net assets 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 $192,331,918 at the close of the most recent fiscal year. A portion of the City of St. Louis Park’s net assets (64 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of St. Louis Park uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of St. Louis Park’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 20 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 27 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Assets Increase Increase 2011 2010 (Decrease) 2011 2010 (Decrease) Assets Current and other assets 83,905,944$ 91,381,536$ (7,475,592)$ 9,743,769$ 9,383,547$ 360,222$ Capital assets 118,565,436 108,244,442 10,320,994 32,675,230 33,080,622 (405,392) Total assets 202,471,380 199,625,978 2,845,402 42,418,999 42,464,169 (45,170) Liabilities Other liabilities 11,832,857 12,754,179 (921,322) 1,800,020 1,615,460 184,560 Noncurrent liabilities 29,177,957 30,271,672 (1,093,715) 9,747,627 10,696,871 (949,244) Total liabilities 41,010,814 43,025,851 (2,015,037) 11,547,647 12,312,331 (764,684) Net assets Invested in capital assets, net of related debt 99,835,484 94,326,512 5,508,972 22,347,266 21,717,923 629,343 Restricted 17,695,996 21,692,426 (3,996,430) - - - Unrestricted 43,929,086 40,581,189 3,347,897 8,524,086 8,433,915 90,171 Total net assets 161,460,566$ 156,600,127$ 4,860,439$ 30,871,352$ 30,151,838$ 719,514$ Governmental Activities Business-type Activities The balance of unrestricted net assets ($52,453,172) may be used to meet the government’s ongoing obligations to citizens and creditors. Governmental activities – Governmental activities increased the City of St. Louis Park’s net assets by $4,860,439. This increase relates primarily to transfers from the enterprise funds. Business-Type activities – The net assets of business-type activities increased by $719,514. This increase is primarily due to an increase in revenue from charges for services as a result of increased user charges. 21 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 28 City of St. Louis Park Management’s Discussion and Analysis The following table indicates the changes in net assets for the City’s governmental and business-type activities: City of St. Louis Park’s Changes in Net Assets Increase Increase 2011 2010 (Decrease) 2011 2010 (Decrease) Revenues Program revenues Charges for services 6,982,689$ 7,122,879$ (140,190)$ 15,042,647$ 13,975,035$ 1,067,612$ Operating grants and contributions 2,065,312 1,735,926 329,386 103,166 103,342 (176) Capital grants and contributions 1,878,697 14,908,522 (13,029,825) - 2,890 (2,890) General revenues Property taxes 30,750,298 29,642,090 1,108,208 - - - Franchise fees 1,894,714 1,497,178 397,536 - - - State grants and contributions not restricted to specific programs 156,325 151,624 4,701 - - - Unrestricted investment earnings 1,048,395 629,094 419,301 136,674 88,991 47,683 Gain on disposal of capital assets 51,686 34,453 17,233 - - - Miscellaneous 2,300,478 950,231 1,350,247 - - - Total revenues 47,128,594 56,671,997 (9,543,403) 15,282,487 14,170,258 1,112,229 Expenses General government 7,247,716 7,192,652 55,064 - - - Public safety 12,535,793 12,256,272 279,521 - - - Public works 7,513,833 19,446,758 (11,932,925) - - - Public information 803,885 435,050 368,835 - - - Culture and recreation 7,882,789 7,792,614 90,175 - - - Housing and rehabilitation 794,935 4,150,595 (3,355,660) - - - Housing maintenance 79,786 241,345 (161,559) - - - Social and economic development 6,171,527 4,861,518 1,310,009 - - - General services - - - - - - Interest on long-term debt 1,695,758 1,453,555 242,203 - - - Water utility - - - 3,839,592 3,904,801 (65,209) Sewer utility - - - 4,572,869 4,193,191 379,678 Solid waste utility - - - 2,319,099 2,116,949 202,150 Storm water utility - - - 1,373,546 1,325,803 47,743 Total expenses 44,726,022 57,830,359 (13,104,337) 12,105,106 11,540,744 564,362 Increase (decrease) in net assets before transfers 2,402,572 (1,158,362) 3,560,934 3,177,381 2,629,514 547,867 Transfers 2,457,867 3,358,921 (901,054) (2,457,867) (3,358,921) 901,054 Change in net assets 4,860,439 2,200,559 2,659,880 719,514 (729,407) 1,448,921 Net assets, January 1 156,600,127 149,837,725 6,762,402 30,151,838 30,881,245 (729,407) Prior period adjustment - 4,561,843 (4,561,843) - - - Net assets, January 1, as restated 156,600,127 154,399,568 2,200,559 30,151,838 30,881,245 (729,407) Net assets, December 31 161,460,566$ 156,600,127$ 4,860,439$ 30,871,352$ 30,151,838$ 719,514$ Governmental Activities Business-type Activities 22 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 29 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 Charges for services 15% Operating grants and contributions 5% Capital grants and contributions 4% Property taxes 65% Franchise taxes 4% Grants and contributions unrestricted 0% Unrestricted investment earnings 2% Gain on sale of capital assets 0% Miscellaneous 5% Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities: Expenses and Program Revenues - Governmental Activities $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 General governmentPublic safetyPublic worksPublic informationCulture and recreationHousing and rehabilitationHousing maintenanceSocial and economic developmentGeneral servicesInterest on long-term debtExpenses Program revenues 23 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 30 City of St. Louis Park Management’s Discussion and Analysis Business-type activities - Business-type activities net assets increased in 2011. Below are the graphs showing the business-type activities revenue and expense comparisons. Revenue Sources - Business-type Activities Charges for services 98.4% Operating grants and contributions 0.7% Unrestricted investment earnings 0.9% Expense and Program Revenues - Business-type Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Water Sewer Solid waste Storm water Expenses Program revenues 24 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 31 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 $63,119,780, a decrease of $9,528,952 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 $32,926,589 at year end. The remainder of fund balance is nonspendable or restricted to indicate that it is not available for new spending because it has already been obligated 1) to pay debt service ($1,764,911), 2) to pay for capital improvements and future expenditures ($12,301,548), 3) for loans outstanding ($11,085,056), 4) for inventory ($309,777), 5 ) for E-911 funds ($416,406) 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 $10,799,829 while total fund balance reached $11,438,222. 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 46.2 percent of the total subsequent year General fund expenditures, while total fund balance represents 48.9 percent of that same amount. The City’s General fund balance increased $407,687 during the current fiscal year. This increase is primarily due to transfers from other funds of $2,553,665. Expenditures were under budget by $911,352 due to conservative spending. Revenues exceeded budget by $393,546 due primarily to license and permit revenue of $2,797,590 and conservative construction revenue projections. Parks and Recreation – the increase of $65,919 in fund balance is due to higher than expected ice rentals at the Recreation Center and transfers in from other funds. Housing Rehabilitation – the increase of $555,920 in fund balance is due to increased special assessment revenues from housing improvement areas. Debt Service Fund - Fund balance in the debt service funds decreased $4,376,740 primarily due to the retirement of debt. Fire Stations Bonds Fund – the decrease of $9,883,585 in fund balance is due to capital expenditures for the construction of two fire stations. Permanent Improvement Revolving Fund - The increase in fund balance of $14,504 is due to transfers out to other funds for capital project funding. 25 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 32 City of St. Louis Park Management’s Discussion and Analysis Street Capital Projects Fund – Fund balance increased by $1,590,466. Transfers in from other funds to fund street projects were the main source of the increase. Development Fund - In 2011, the Development Fund balance decreased by $25,307. This decrease is attributable primarily to transfers out and reduced interest earnings. Redevelopment District Fund – The Redevelopment District fund is comprised of all tax increment districts in the City. The increase in fund balance of $868,224 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 assets of the Water Utility, Sewer Utility, Storm Water Utility, Solid Waste and Wireless funds amounted to $8,853,313. Total net assets increased by $900,765. This increase was primarily a result of an increase in charges for services from increased user charges. 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, 2011, was $151,240,666 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of St. Louis Park’s investment in capital assets for the current fiscal year was 7.0 percent. Major capital asset events during the current fiscal year included the following: • Substantial construction of two fire stations. • Improvements to roadways and street lighting. • Improvements to water system. • Improvements to sewer system. • Improvements to park infrastructure and aesthetic aspects of the parks. 26 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 33 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Increase Increase 2011 2010 (Decrease) 2011 2010 (Decrease) Land 14,383,395$ 14,383,395$ -$ 174,844$ 174,844$ -$ Permanent easments 1,399,000 1,399,000 - - - - Buildings 26,953,687 27,300,763 (347,076) 1,445,212 1,572,990 (127,778) Improvements other than buildings 10,544,494 10,491,688 52,806 22,337,678 22,652,789 (315,111) Machinery and equipment 3,529,713 3,709,417 (179,704) 6,375,697 6,616,776 (241,079) Fleet 3,056,561 2,945,369 (501,506) 2,046,738 - - Infrastructure 44,518,674 45,523,404 (1,004,730) - 1,991,573 (1,991,573) Construction in progress 14,179,912 2,491,406 11,688,506 295,062 71,650 223,412 Total 118,565,436$ 108,244,442$ 9,708,296$ 32,675,231$ 33,080,622$ (2,452,129)$ Governmental Activities Business-type Activities Additional information on the City of St. Louis Park’s capital assets can be found in Note 4 on pages 66- 67 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 $38,880,000. Of this amount, $21,420,000 comprises debt issued for improvement and capital projects and will be repaid by ad valorem tax levies. In addition, $6,905,000 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 $10,555,000 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 $3,703,262 for compensated absences and $1,332,139 for other post employment benefits payable. 27 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 34 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Increase Increase 2011 2010 (Decrease) 2011 2010 (Decrease) G.O. Revenue Bonds -$ -$ -$ 10,555,000$ 11,335,000$ (780,000)$ G.O. Tax Increment 6,905,000 7,410,000 (505,000) - - - G.O. Improvement 21,420,000 26,335,000 (4,915,000) - - - Compensated absences 3,544,017 3,399,692 144,325 159,245 189,525 (30,280) Other postemployment benefits 1,255,184 992,616 262,568 76,755 57,345 19,410 Total 33,124,201$ 38,137,308$ (5,013,107)$ 10,791,000$ 11,581,870$ (790,870)$ Governmental Activities Business-type Activities Principal payments during 2011 totaled $6,200,000. 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 $105,148,060 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 5 on pages 68 - 72 of this report. Economic Factors and Next Year’s Budgets and Rates • User charges have been increased to account for various utility improvements scheduled for 2012 and beyond. • The overall tax levy for 2012 was increased 4.7 percent. All of these factors were considered in preparing the City of St. Louis Park’s budget for the 2012 fiscal year. Requests for Information This financial report is designed to provide our citizens, customers, and creditors with a general overview of the City of St. Louis Park’s finances and to show the City’s accountability for the resources it is entrusted. Questions concerning any of the information provided in the report, or requests for additional financial information, contact the City of St. Louis Park Finance Department at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota, 55416, 952-924-2683, or Brian Swanson – Controller at bswanson@stlouispark.org. 28 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 35 BASIC FINANCIAL STATEMENTS 29 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 36 - This page intentionally left blank - 30 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 37 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET ASSETS Statement 1 December 31, 2011 With Comparative Totals For December 31, 2010 Governmental Business-Type Activities Activities 2011 2010 Assets: Cash and investments $66,347,043 $5,804,203 $72,151,246 $78,988,266 Accrued interest receivable 249,526 24,896 274,422 249,538 Due from other governments 619,808 7,460 627,268 606,777 Accounts receivable 761,437 3,037,881 3,799,318 3,507,406 Taxes receivable 518,327 - 518,327 1,010,604 Prepaid items 261,543 292,431 553,974 556,287 Inventory 309,777 78,042 387,819 253,727 Deposits receivable 131,000 700 131,700 131,700 Internal balances 488,471 (488,471) - - Special assessments receivable 6,096,893 913,152 7,010,045 6,927,294 Loans receivable 7,937,922 - 7,937,922 7,974,731 Deferred charges 184,197 73,475 257,672 283,568 Land held for resale - - - 87,915 Capital assets (net of accumulated depreciation): Nondepreciable 29,962,307 469,906 30,432,213 18,520,295 Depreciable 88,603,129 32,205,324 120,808,453 122,804,769 Total assets 202,471,380 42,418,999 244,890,379 241,902,877 Liabilities: Accounts payable 1,413,693 284,526 1,698,219 1,419,569 Salaries payable 884,683 47,737 932,420 979,162 Due to other governments 401,366 161,763 563,129 115,656 Contracts payable 3,358,829 88,823 3,447,652 1,517,497 Accrued interest payable 480,058 148,299 628,357 550,973 Deposits payable 754,090 - 754,090 553,058 Unearned revenue 755,222 - 755,222 441,243 Compensated absences payable: Due within one year 2,480,812 111,472 2,592,284 2,512,451 Due in more than one year 1,063,206 47,773 1,110,979 1,076,765 Bonds payable (net of premiums and discounts): Due within one year 1,304,104 957,400 2,261,504 6,200,000 Due in more than one year 26,859,567 9,622,899 36,482,466 38,734,577 Other postemployment benefits: Due in more than one year 1,255,184 76,955 1,332,139 1,049,961 Total liabilities 41,010,814 11,547,647 52,558,461 55,150,912 Net assets: Invested in capital assets, net of related debt 99,835,484 22,347,266 122,182,750 116,044,435 Restricted for: Tax increment 4,243,020 - 4,243,020 3,534,504 E-911 purposes 416,406 - 416,406 425,967 EMPG grant 11,312 - 11,312 - Debt service 2,792,922 - 2,792,922 7,097,289 Cable TV equipment 668,349 - 668,349 475,062 Police and fire purposes 4,949,752 - 4,949,752 5,056,708 Housing redevelopment 4,614,235 - 4,614,235 5,102,896 Unrestricted 43,929,086 8,524,086 52,453,172 49,015,104 Total net assets $161,460,566 $30,871,352 $192,331,918 $186,751,965 Primary Government Totals The accompanying notes are an integral part of these financial statements. 31 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 38 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2011 With Comparative Totals For The Year Ended December 31, 2010 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $7,247,716 $1,059,527 Public safety 12,535,793 2,917,525 Public works 7,513,833 315,163 Public information 803,885 200,000 Culture and recreation 7,882,789 2,111,348 Housing and rehabilitation 794,935 62,191 Housing maintenance 79,786 - Social and economic development 6,171,527 316,935 Interest on long-term debt 1,695,758 - Total governmental activities 44,726,022 6,982,689 Business-type activities: Water 3,839,592 4,475,068 Sewer 4,572,869 5,768,266 Solid waste 2,319,099 2,894,726 Storm water 1,373,546 1,904,587 Total business-type activities 12,105,106 15,042,647 Total primary government $56,831,128 $22,025,336 The accompanying notes are an integral part of these financial statements. 32 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 39 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2011 2010 $98,849 $ - ($6,089,340) $ - ($6,089,340) ($5,869,450) 636,828 139,017 (8,842,423) - (8,842,423) (8,603,707) 556,134 888,674 (5,753,862) - (5,753,862) (8,084,709) - - (603,885) - (603,885)(435,050) 253,237 - (5,518,204) - (5,518,204) (5,698,587) 235,531 499,575 2,362 - 2,362 (89,661) - 94,038 14,252 - 14,252 (177,294) 91,984 257,393 (5,505,215) - (5,505,215) (3,651,019) 192,749 - (1,503,009) - (1,503,009) (1,453,555) 2,065,312 1,878,697 (33,799,324)0 (33,799,324) (34,063,032) - - - 635,476 635,476 243,593 - - - 1,195,397 1,195,397 1,084,282 103,166 - - 678,793 678,793 705,769 - - - 531,041 531,041 506,879 103,166 0 0 3,040,707 3,040,707 2,540,523 $2,168,478 $1,878,697 (33,799,324) 3,040,707 (30,758,617) (31,522,509) General revenues: Taxes: Property taxes 23,527,322 - 23,527,322 22,992,527 Tax increment 7,222,976 - 7,222,976 6,649,563 Franchise taxes 1,894,714 - 1,894,714 1,497,178 Grants and contributions not restricted to specific programs 156,325 - 156,325 151,624 Unrestricted investment earnings 1,048,395 136,674 1,185,069 718,085 Gain on disposal of capital assets 51,686 - 51,686 34,453 Miscellaneous 2,300,478 - 2,300,478 950,231 Transfers 2,457,867 (2,457,867) - - Total general revenues 38,659,763 (2,321,193) 36,338,570 32,993,661 Change in net assets 4,860,439 719,514 5,579,953 1,471,152 Net assets - January 1, as previously stated 156,600,127 30,151,838 186,751,965 180,718,970 Prior period adjustment - - - 4,561,843 Net assets - January 1, as restated 156,600,127 30,151,838 186,751,965 185,280,813 Net assets - December 31 $161,460,566 $30,871,352 $192,331,918 $186,751,965 Totals Net (Expense) Revenue and Changes in Net Assets Primary Government Program Revenues The accompanying notes are an integral part of these financial statements. 33 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 40 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2011 With Comparative Totals For December 31, 2010 General Fund Parks and Recreation Housing Rehabilitation Debt Service Funds 4040 Fire Station Bonds Assets Cash and investments $13,982,347 $729,247 $483,196 $1,717,602 $4,696,087 Accrued interest receivable 52,270 - 808 5,201 1,482 Due from other governments 142,534 27,751 218,000 95,842 - Accounts receivable 27,752 215,573 10,781 - - Taxes receivable - unremitted 133,399 - - - - Taxes receivable - delinquent 327,905 - - - - Prepaid items 57,473 10,000 - - - Inventory 13,719 296,058 - - - Deposits receivable - - - - - Due from other funds - - 50,000 - - Special assessments receivable - delinquent - - 16,687 - - Special assessments receivable - deferred - - 4,644,317 - - Interfund loan receivable - - - - - Loans receivable - current - - 81,707 25,000 - Loans receivable - noncurrent - - 2,768,176 1,745,000 - Land held for resale - - - - - Total assets $14,737,399 $1,278,629 $8,273,672 $3,588,645 $4,697,569 Liabilities and Fund Balances Liabilities: Accounts payable $764,009 $85,445 $113,367 $1,100 $87,781 Salaries payable 712,022 124,257 4,245 - - Special Revenue Funds The accompanying notes are an integral part of these financial statements. py Due to other governments 28,927 2,561 - - - Contracts payable 56,742 - 15,462 - 2,499,995 Due to other funds - - - - - Interfund loan payable - - 1,835,871 - - Deposits payable 717,430 - - 36,660 - Deferred revenue 1,020,047 47,107 4,656,209 1,785,974 - Total liabilities 3,299,177 259,370 6,625,154 1,823,734 2,587,776 Fund balance: Nonspendable 71,192 306,058 2,768,176 - - Restricted 427,718 - - 1,764,911 2,057,900 Committed - - - - - Assigned 139,483 713,201 - - 51,893 Unassigned 10,799,829 - (1,119,658) - - Total fund balance 11,438,222 1,019,259 1,648,518 1,764,911 2,109,793 Total liabilities and fund balance $14,737,399 $1,278,629 $8,273,672 $3,588,645 $4,697,569 Fund balance reported above Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds: Receivables not available soon enough to pay for the current period's expenditures Deferred charges on bonds 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 assets of governmental activities The accompanying notes are an integral part of these financial statements. 34 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 41 Statement 3 Permanent Improvement Revolving Streets Capital Projects Development EDA Redevelopment District Other Governmental Funds 2011 2010 $3,679,093 $ - $15,982,626 $9,082,110 $11,362,256 $61,714,564 $67,614,606 16,415 - 68,380 39,536 45,870 229,962 218,698 1,000 - - - 56,471 541,598 458,017 - - 4,586 - 487,161 745,853 989,866 - - - 42,473 - 175,872 520,634 - - - 14,550 - 342,455 489,970 - - - - - 67,473 76,945 - - - - - 309,777 253,727 - - 100,000 - - 100,000 100,000 233,082 - - - - 283,082 2,284,633 13,274 - 2,080 - 20,978 53,019 49,188 1,119,795 - 82,065 - 197,697 6,043,874 6,117,181 159,244 - 5,685,766 - - 5,845,010 5,677,518 - - 190,541 - - 297,248 182,661 - - 2,061,839 655,628 410,031 7,640,674 7,792,070 - - - - - - 87,915 $5,221,903 $0 $24,177,883 $9,834,297 $12,580,464 $84,390,461 $92,913,629 $ - $46 $110,521 $80,057 $29,049 $1,271,375 $986,676 - - - - 14,062 854,586 881,756 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. - 297,320 17,371 29,602 2,755 378,536 67,452 - 369,424 - - 146,943 3,088,566 1,191,738 - 173,025 - 50,000 60,057 283,082 2,284,633 - - - 3,849,895 - 5,685,766 5,442,543 - - - - - 754,090 553,058 1,127,200 - 82,739 27,172 213,232 8,959,680 8,862,041 1,127,200 839,815 210,631 4,036,726 466,098 21,275,681 20,269,897 159,244 - 7,747,605 - 410,031 11,462,306 11,651,046 - - - 8,857,255 5,618,101 18,725,885 32,722,815 - - - - 511,610 511,610 466,792 3,935,459 - 16,219,647 - 5,598,295 26,657,978 25,275,912 - (839,815) - (3,059,684) (23,671) 5,757,001 2,527,167 4,094,703 (839,815) 23,967,252 5,797,571 12,114,366 63,114,780 72,643,732 $5,221,903 $0 $24,177,883 $9,834,297 $12,580,464 $84,390,461 $92,913,629 $63,114,780 $72,643,732 102,776,022 92,993,461 8,204,458 8,420,798 184,197 390,837 (28,163,671) (33,759,148) (480,058) (369,171) 15,824,838 16,279,618 $161,460,566 $156,600,127 The accompanying notes are an integral part of these financial statements. 35 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 42 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2011 With Comparative Totals For The Year Ended December 31, 2010 General Fund Parks and Recreation Housing Rehabilitation Debt Service Funds 4040 Fire Station Bonds Revenues: Property taxes $15,372,077 $4,000,561 $ - $996,995 $ - Tax increments - - - - - Franchise taxes - - - - - License and permits 2,797,590 110 - - - Intergovernmental 1,243,495 208,535 235,531 192,749 - Charges for services 1,192,620 2,102,238 12,191 - - Fines and forfeits 281,047 - - - - Special assessments - - 499,575 - - Interest on investments 203,282 3,994 4,305 21,484 44,542 Miscellaneous 36,347 21,948 641,188 154,881 - Total revenues 21,126,458 6,337,386 1,392,790 1,366,109 44,542 Expenditures: Current: General government 6,415,318 - - - - Public safety 11,809,892 - - - 16,912 Public works 4,080,655 - - - - Public information - - - - - Culture and recreation - 6,339,667 - - - Housing and rehabilitation - - 790,918 - - Housing maintenance - - - - - Social economic development - - - 382,119 - Capital outlay: General government 52,930 - - - - Public safety 13,641 - - - 9,911,215 Special Revenue Funds The accompanying notes are an integral part of these financial statements. Public safety 13,641 9,911,215 Public works - - - - - Public information - - - - - Housing and rehabilitation - - 9,420 - - Culture and recreation - - - - - Social and economic development - - - - - Debt service: Principal - - - 5,420,000 - Interest and other - - 93,453 1,077,096 - Fiscal agent fees - - - 1,040 - Bond issuance costs - - - - - Total expenditures 22,372,436 6,339,667 893,791 6,880,255 9,928,127 Revenues over (under) expenditures (1,245,978)(2,281) 498,999 (5,514,146) (9,883,585) Other financing sources (uses): Transfers in 2,553,665 68,200 500,000 1,137,560 - Transfers out (900,000) - (443,079)(154) - Bond premium - - - - - Bonds issued - - - - - Refunding bonds issued - - - - - Redemption of refunded bonds - - - - - Refunding TIF notes issued - - - - - Redemption of TIF notes - - - - - Payments to refunded bond escrow agent - - - - - Proceeds from sale of capital assets - - - - - Total other financing sources (uses)1,653,665 68,200 56,921 1,137,406 0 Net change in fund balance 407,687 65,919 555,920 (4,376,740) (9,883,585) Fund balance - January 1, as previously stated 11,030,535 953,340 1,092,598 6,141,651 11,993,378 Prior period adjustment - - - - - Fund balance - January 1, as restated 11,030,535 953,340 1,092,598 6,141,651 11,993,378 Fund balance - December 31 $11,438,222 $1,019,259 $1,648,518 $1,764,911 $2,109,793 The accompanying notes are an integral part of these financial statements. 36 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 43 Statement 4 Permanent Improvement Revolving Streets Capital Projects Development EDA Redevelopment District Other Governmental Funds 2011 2010 $ - $ - $43,888 $989,016 $1,934,000 $23,336,537 $22,667,190 - - - 7,222,976 - 7,222,976 6,649,563 - - - - 1,894,714 1,894,714 1,497,178 - - - - - 2,797,700 2,359,716 - 888,674 - 197,776 138,740 3,105,500 11,879,601 - 1,521 298,387 - 240,753 3,847,710 4,051,971 - - - - - 281,047 401,610 225,842 - 59,683 - 200,812 985,912 1,550,110 57,134 - 272,284 149,487 192,998 949,510 612,098 12,571 4,462 988,189 - 476,022 2,335,608 3,050,231 295,547 894,657 1,662,431 8,559,255 5,078,039 46,757,214 54,719,268 - - - - - 6,415,318 6,219,751 44,730 - - - 14,043 11,885,577 11,771,246 - 125,009 - - 232,275 4,437,939 15,624,494 - - - - 383,586 383,586 387,459 - - - - 206,387 6,546,054 6,234,938 - - - - - 790,918 4,144,378 - - - - 79,786 79,786 241,170 - - 1,449,632 4,364,309 229,953 6,426,013 4,720,638 - - - - - 52,930 222,381 - - - - - 9,924,856 519,083 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. 9,924,856 519,083 - 1,549,262 - - 1,088,217 2,637,479 3,955,145 - - - - - - 92,086 - - - - - 9,420 56,259 - - - - 1,548,322 1,548,322 990,548 - - 122,002 - - 122,002 470,581 - - - - - 5,420,000 2,170,000 - - - - - 1,170,549 1,170,286 - - - - - 1,040 - - - - - - - 453,288 44,730 1,674,271 1,571,634 4,364,309 3,782,569 57,851,789 59,443,731 250,817 (779,614)90,797 4,194,946 1,295,470 (11,094,575) (4,724,463) 20,014 2,370,080 - - 437,010 7,086,529 11,809,353 (256,327) - (116,104)(3,326,722)(478,520) (5,520,906) (14,974,391) - - - - - - 2,792 - - - - - - 16,130,000 - - - - - - 3,615,000 - - - - - - (1,825,000) - - - - - - 4,430,000 - - - - - - (4,164,000) - - - - - - - - - - - - - 27,412 (236,313)2,370,080 (116,104)(3,326,722)(41,510)1,565,623 15,051,166 14,504 1,590,466 (25,307)868,224 1,253,960 (9,528,952) 10,326,703 4,080,199 (2,430,281) 23,992,559 4,929,347 10,860,406 72,643,732 60,965,104 - - - - - - 1,351,925 4,080,199 (2,430,281) 23,992,559 4,929,347 10,860,406 72,643,732 62,317,029 $4,094,703 ($839,815) $23,967,252 $5,797,571 $12,114,366 $63,114,780 $72,643,732 The accompanying notes are an integral part of these financial statements. 37 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 44 - This page intentionally left blank - 38 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 45 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, 2011 With Comparative Amounts For The Year Ended December 31, 2010 2011 2010 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)($9,528,952) $10,326,703 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 (4,772,007) (4,481,214) Capital outlays 14,667,330 6,306,083 Disposal of capital assets (112,762) (1,006,289) 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 assets. 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 - (19,745,000) Premium on bonds issued - (2,792) Principal repayments on bonds 5,420,000 3,995,000 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.(110,887) (82,641) 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.(31,163) 252,660 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 (86,825) 2,802,410 Property taxes (147,515) (12,963) Loans 18,000 (2,100,000) 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. (454,780) 5,948,602 Change in net assets of governmental activities (Statement 2) $4,860,439 $2,200,559 The accompanying notes are an integral part of these financial statements. 39 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 46 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2011 With Comparative Amounts For December 31, 2010 2011 2010 2011 2010 Assets: Current assets: Cash and investments $5,945 $372,261 $2,429,205 $1,844,540 Accrued interest receivable - 1,016 10,159 6,997 Due from other governments - 102 7,460 - Accounts receivable 1,145,542 762,478 978,380 870,045 Prepaid items - - 292,431 298,059 Deposits receivable 700 700 - - Inventories 78,042 - - - Interfund loan receivable - - 451,523 390,582 Special assessments receivable - delinquent 99,374 83,336 - 57 Special assessments receivable - deferred 708,015 595,293 105,750 82,226 Total current assets 2,037,618 1,815,186 4,274,908 3,492,506 Noncurrent assets: Deferred charges 49,307 50,427 1,809 - 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 707,940 764,467 22,278 22,278 Infrastructure 14,233,810 14,037,191 18,619,083 18,711,412 Machinery, furniture and equipment 4,322,583 4,404,767 265,069 170,967 Fleet - - - - Construction in progress 134,397 - 160,665 62,136 Total capital assets, at cost 24,275,186 24,082,881 19,133,206 19,032,904 Less: accumulated depreciation (10,855,462) (10,342,441) (15,465,467) (15,354,601) Net capital assets 13,419,724 13,740,440 3,667,739 3,678,303 Total noncurrent assets 13,469,031 13,790,867 3,669,548 3,678,303 Total assets 15,506,649 15,606,053 7,944,456 7,170,809 Liabilities: Current liabilities: Accounts payable 99,022 172,342 11,353 20,822 Salaries payable 28,047 39,514 9,562 8,242 Accrued flex spending - - - - Due to other governments 39,109 5,065 7,781 - Contracts payable 64,257 15,103 4,984 32,475 Accrued interest payable 111,414 121,328 2,858 - Interfund loan payable 891,523 810,582 - - Compensated absences payable 87,187 107,915 17,690 18,415 Bonds payable 587,258 462,300 15,526 - Total current liabilities 1,907,817 1,734,149 69,754 79,954 Noncurrent liabilities: Compensated absences payable 37,365 46,249 7,582 7,891 Other postemployment benefits payable 55,661 43,677 12,881 8,523 Bonds payable 6,874,980 7,020,123 236,810 - Total noncurrent liabilities 6,968,006 7,110,049 257,273 16,414 Total liabilities 8,875,823 8,844,198 327,027 96,368 Net assets: Invested in capital assets, net of related debt 5,957,486 6,258,017 3,667,738 3,678,303 Unrestricted 673,340 503,838 3,949,691 3,396,138 Total net assets $6,630,826 $6,761,855 $7,617,429 $7,074,441 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 40 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 47 Statement 6 Business-Type Activities Enterprise Funds Governmental Activities 2011 2010 2011 2010 Internal 2011 2010 Service Funds $1,815,357 $1,408,672 $1,553,696 $2,459,645 $5,804,203 $6,085,118 $4,632,479 7,603 7,277 7,134 8,763 24,896 24,053 19,564 - - - - 7,460 102 78,210 613,079 595,814 300,880 289,203 3,037,881 2,517,540 15,584 - - - - 292,431 298,059 194,070 - - - - 700 700 31,000 - - - - 78,042 - - 440,000 420,000 - - 891,523 810,582 - 13 13 - - 99,387 83,406 - - - - - 813,765 677,519 - 2,876,052 2,431,776 1,861,710 2,757,611 11,050,288 10,497,079 4,970,907 - - 22,359 29,574 73,475 80,001 - - - - - 174,844 174,844 818,094 - - - - 4,767,723 4,767,723 - - - 6,182,215 6,182,215 6,912,433 6,968,960 - - - 15,439,525 14,942,261 48,292,418 47,591,083 9,592,102 - - 89,099 89,099 4,676,751 4,764,614 5,620,990 - - - - - - 6,576,875 - - - 9,514 295,062 71,650 654 0 0 21,710,839 21,223,089 65,119,231 64,338,874 22,608,715 - - (6,123,072) (5,561,210) (32,444,001) (31,258,252) (6,819,301) 0 0 15,587,767 15,661,879 32,675,230 33,080,622 15,789,414 0 0 15,610,126 15,691,453 32,748,705 33,160,623 15,789,414 2,876,052 2,431,776 17,471,836 18,449,064 43,798,993 43,657,702 20,760,321 154,377 149,129 19,774 7,737 284,526 350,030 142,318 941 629 9,187 9,170 47,737 57,555 436 - - - - - - 29,661 35,274 34,468 79,599 - 161,763 39,533 22,830 - - 19,582 26,265 88,823 73,843 270,263 - - 34,027 60,474 148,299 181,802 - - - 159,244 234,975 1,050,767 1,045,557 - - - 6,595 6,337 111,472 132,667 2,480,812 - - 354,616 317,700 957,400 780,000 - 190,592 184,226 682,624 662,658 2,850,787 2,660,987 2,946,320 - - 2,826 2,717 47,773 56,857 1,063,206 - - 8,413 5,145 76,955 57,345 1,255,184 - - 2,511,109 3,562,576 9,622,899 10,582,699 - 0 0 2,522,348 3,570,438 9,747,627 10,696,901 2,318,390 190,592 184,226 3,204,972 4,233,096 12,598,414 13,357,888 5,264,710 - - 12,722,042 11,781,603 22,347,266 21,717,923 15,789,409 2,685,460 2,247,550 1,544,822 2,434,365 8,853,313 8,581,891 (293,798) $2,685,460 $2,247,550 $14,266,864 $14,215,968 31,200,579 $30,299,814 $15,495,611 Adjustment to reflect consolidation of Internal Service fund activities (329,227) Net assets of business-type activities $30,871,352 Totals 5200 Solid Waste 5300 Storm Water Utility The accompanying notes are an integral part of these financial statements. 41 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 48 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 31, 2011 With Comparative Totals For The Year Ended December 31, 2010 2011 2010 2011 2010 Operating revenues: Charges for services $4,078,000 $3,673,167 $5,711,614 $5,221,046 Sale of water meters 327 - - - Other 145,561 203,495 60,014 56,427 Rent 249,138 271,732 - - Total operating revenues 4,473,026 4,148,394 5,771,628 5,277,473 Operating expenses: Personal services 856,141 945,805 342,197 305,450 Supplies 338,313 449,501 54,698 19,532 Professional services 273,372 321,005 48,520 49,014 Insurance 39,671 37,419 51,075 45,614 Utilities 413,491 405,304 44,603 42,954 Repairs and maintenance 369,301 289,209 127,991 90,970 Depreciation 640,217 607,240 117,253 121,075 Disposal charges 67,098 1,230 3,576,839 3,340,516 Other 390,658 392,471 131,754 120,947 Total operating expenses 3,388,262 3,449,184 4,494,930 4,136,072 Operating income (loss)1,084,764 699,210 1,276,698 1,141,401 Nonoperating revenues (expenses): Investment income 4,933 - 57,975 31,877 Property taxes - - - - Intergovernmental revenue - - - - Miscellaneous expense (6,427) (82,038) - (2,376) Amortization of bond premiums 1,858 - 26 - Net gain on disposal of assets (33,106) - - - Interest expense (327,553) (304,101)(11,318) - Issuance of debt (904) - (149) - Total nonoperating revenues (expenses)(361,199) (386,139)46,534 29,501 Income (loss) before transfers 723,565 313,071 1,323,232 1,170,902 Transfers in - 5,934 - - Transfers out (854,594) (944,020) (780,244) (764,244) Total transfers (854,594) (938,086) (780,244) (764,244) Change in net assets (131,029) (625,015)542,988 406,658 Net assets - January 1, as previously reported 6,761,855 7,386,870 7,074,441 6,667,783 Prior period adjustment - - - - Net assets - January 1, as restated 6,761,855 7,386,870 7,074,441 6,667,783 Net assets - December 31 $6,630,826 $6,761,855 $7,617,429 $7,074,441 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 42 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 49 Statement 7 Governmental Business-Type Activities Enterprise Funds Activities Internal 2011 2010 2011 2010 2011 2010 Service Funds $2,677,475 $2,586,113 $1,904,369 $1,829,792 $14,371,458 $13,310,118 $626,983 - - - - 327 - - 217,251 133,263 - - 422,826 393,185 418,105 - - - - 249,138 271,732 - 2,894,726 2,719,376 1,904,369 1,829,792 15,043,749 13,975,035 1,045,088 130,019 56,262 272,871 241,947 1,601,228 1,549,464 994,518 84,517 25,378 12,978 4,143 490,506 498,554 240,126 1,633 3,337 52,343 49,515 375,868 422,871 13,655 12,473 12,673 9,458 8,227 112,677 103,933 127,194 - - 28,831 19,012 486,925 467,270 - - - 201,312 116,782 698,604 496,961 - - - 561,861 560,692 1,319,331 1,289,007 1,189,486 2,054,450 1,982,084 - - 5,698,387 5,323,830 - 35,889 35,527 125,979 161,452 684,280 710,397 596,104 2,318,981 2,115,261 1,265,633 1,161,770 11,467,806 10,862,287 3,161,083 575,745 604,115 638,736 668,022 3,575,943 3,112,748 (2,115,995) 47,099 37,067 26,667 20,047 136,674 88,991 98,885 - - - - - - 338,300 103,166 103,342 - 2,890 103,166 106,232 98,849 - - (54) (13,349)(6,481) (97,763) - - - 218 - 2,102 - - - - - - (33,106) - 51,686 - - (78,732) (128,617) (417,603) (432,718) - - - (1,010) - (2,063) - - 150,265 140,409 (52,911) (119,029) (217,311) (335,258) 587,720 726,010 744,524 585,825 548,993 3,358,632 2,777,490 (1,528,275) - - - - - 5,934 950,000 (288,100) (1,288,100) (534,929) (368,491) (2,457,867) (3,364,855) (57,756) (288,100) (1,288,100) (534,929) (368,491) (2,457,867) (3,358,921) 892,244 437,910 (543,576) 50,896 180,502 900,765 (581,431) (636,031) 2,247,550 2,791,126 14,215,968 14,035,466 30,299,814 30,881,245 16,131,642 - - - - - - - 2,247,550 2,791,126 14,215,968 14,035,466 30,299,814 30,881,245 16,131,642 $2,685,460 $2,247,550 $14,266,864 $14,215,968 $31,200,579 $30,299,814 $15,495,611 Totals5200 Solid Waste 5300 Storm Water Utility The accompanying notes are an integral part of these financial statements. 43 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 50 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2011 With Comparative Totals For The Year Ended December 31, 2010 2011 2010 2011 2010 Cash flows from operating activities: Receipts from customers and users $3,815,743 $4,018,444 $5,572,352 $5,128,771 Receipts from interfund services provided - - - - Other receipts 145,561 203,495 60,014 56,427 Payments to suppliers (1,960,068) (1,841,068) (4,059,031) (3,978,074) Payments to employees (885,236) (913,302) (337,553) (295,836) Miscellaneous expense (6,427) (82,038) - (2,376) Net cash flows provided by (used in) operating activities 1,109,573 1,385,531 1,235,782 908,912 Cash flows from noncapital financing activities: Transfers in - 5,934 - - Transfers out (854,594) (944,020) (780,244) (764,244) Borrowing (payments) on interfund balances 80,941 38,599 (60,941) - Intergovernmental receipts - - - - Intergovernmental payments - - - - Net cash flows provided by (used in) 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Net cash flows provided by (used in) noncapital financing activities (773,653) (899,487) (841,185) (764,244) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (350,814) (985,608) (108,136) (188,229) Proceeds from sale of assets Proceeds from bonds issued (net)1,266,998 - Transfer in of long term debt (net)441,000 252,000 - Principal paid on bonds (460,000) (120,000) - Interest paid on debt (338,371) (283,372) (8,609) Net cash flows provided by (used in) capital and related financing activities (708,185) (121,982) 135,255 (188,229) Cash flows from investing activities: Investment income 5,949 7,849 54,813 36,510 Net increase (decrease) in cash and cash equivalents (366,316) 371,911 584,665 (7,051) Cash and cash equivalents - January 1 372,261 350 1,844,540 1,851,591 Cash and cash equivalents - December 31 $5,945 $372,261 $2,429,205 $1,844,540 The accompanying notes are an integral part of these financial statements. 44 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 51 Statement 8 Page 1 of 2 Governmental Activities Internal 2011 2010 2011 2010 2011 2010 Service Funds $2,660,210 $2,540,005 $1,892,692 $1,886,431 $13,940,997 $13,573,651 $ - - - - - - - 681,847 217,251 133,263 - - 422,826 393,185 418,105 (2,182,908) (2,064,952) (345,948) (368,138) (8,547,955) (8,252,232) (897,905) (129,707) (56,281) (269,219) (230,549) (1,621,715) (1,495,968) (597,378) - - (54) (13,349)(6,481) (97,763) - 564,846 552,035 1,277,471 1,274,395 4,187,672 4,120,873 (395,331) - - - - - 5,934 950,000 (288,100) (1,288,100) (534,929) (368,491) (2,457,867) (3,364,855) (57,756) (20,000) - (75,731) (73,251) (75,731) (34,652) - 103,166 103,342 - 2,890 103,166 106,232 437,149 - - - - - - - 5300 Storm Water Utility Totals5200 Solid Waste Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. (204,934) (1,184,758) (610,660) (438,852) (2,430,432) (3,287,341) 1,329,393 - - (481,867) (9,514) (940,817) (1,183,351) (1,731,815) - - 55,582 - 2,799,929 - 4,066,927 - - (693,000) - - - - - - (320,000) (1,820,000) (780,000) (1,940,000) - - - (106,189) (121,133) (453,169) (404,505) - 0 0 (1,601,056) 849,282 (2,173,986) 539,071 (1,676,233) 46,773 42,344 28,296 16,104 135,831 102,807 86,108 406,685 (590,379) (905,949) 1,700,929 (280,915) 1,475,410 (656,063) 1,408,672 1,999,051 2,459,645 758,716 6,085,118 4,609,708 5,288,542 $1,815,357 $1,408,672 $1,553,696 $2,459,645 $5,804,203 $6,085,118 $4,632,479 The accompanying notes are an integral part of these financial statements. 45 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 52 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2011 With Comparative Totals For The Year Ended December 31, 2010 2011 2010 2011 2010 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)$1,084,764 $699,210 $1,276,698 $1,141,401 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous expense (6,427) (82,038) - (2,376) Depreciation 640,217 607,240 117,253 121,075 Changes in assets and liabilities: Decrease (increase) in: Accounts receivable (382,962) 88,106 (115,795) (42,446) Special assessments (128,760) (14,561) (23,467) (49,829) Prepaid items - - 5,628 (298,059) Inventory (78,042) - - Increase (decrease) in: Accounts payable (39,276)86,787 (1,688)3,402 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Accounts payable (39,276)86,787 (1,688)3,402 Contracts payable 49,154 (31,716) (27,491) 26,130 Accrued salaries payable (11,467) (1,456)1,320 1,883 Accrued flex spending - - - Compensated absences payable (29,612) 18,586 (1,034) 3,888 Other postemployment benefits 11,984 15,373 4,358 3,843 Total adjustments 24,809 686,321 (40,916) (232,489) Net cash provided by (used) operating activities $1,109,573 $1,385,531 $1,235,782 $908,912 Supplemental schedule of noncash capital and related financing activities Amortization of bond premiums and issuance costs $3,011 $2,610 $123 $ - Disposal of capital assets $160,305 $45,817 $6,387 $ - Capital assets purchased on account $ - $ - $ - $ - The accompanying notes are an integral part of these financial statements. 46 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 53 Statement 8 Page 2 of 2 Governmental Activities Internal 2011 2010 2011 2010 2011 2010 Service Funds $575,745 $604,115 $638,736 $668,022 $3,575,943 $3,112,748 ($2,115,995) - - (54) (13,349)(6,481) (97,763) - - - 561,861 560,692 1,319,331 1,289,007 1,189,486 (17,265) (46,168) (11,677) 56,639 (527,699) 56,131 54,864 - 60 - - (152,227) (64,330) - - - - 5,628 (298,059) (12,787) - - - - (78,042) - - 6,054 (5,953)91,636 (32,081)56,726 52,155 73,614 5200 Solid Waste 5300 Storm Water Utility Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 6,054 (5,953)91,636 (32,081)56,726 52,155 73,614 - - (6,683) 23,074 14,980 17,488 18,347 312 (19)17 4,740 (9,818) 5,148 (11,353) - - - - - - 1,599 - - 367 2,815 (30,279) 25,289 144,326 - - 3,268 3,843 19,610 23,059 262,568 (10,899) (52,080) 638,735 606,373 611,729 1,008,125 1,720,664 $564,846 $552,035 $1,277,471 $1,274,395 $4,187,672 $4,120,873 ($395,331) $ - $ - $1,736 $1,302 $4,870 $3,912 $ - $ - $ - $ - $ - $166,692 $45,817 $661,218 $ - $ - $ - $ - $ - $ - $270,263 The accompanying notes are an integral part of these financial statements. 47 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 54 - This page intentionally left blank - 48 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 55 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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 2009A General Obligation Tax Increment Bond, 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. 49 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 56 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) 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. 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. 50 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 57 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Property taxes, special assessments, intergovernmental revenue, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Parks and Recreation Fund accounts for the operation and maintenance of all City- owned parks through the Park Maintenance division, trees through the Forestry division, nature center through the Westwood Hills Nature Center division, and all City sponsored recreation programs through the Organized Recreation division. Financing is provided by property taxes, intergovernmental revenues, and a contribution from the St. Louis Park School District No. 283 for the jointly sponsored recreation activities, and user fees from recreation programs. 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 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. 51 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 58 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary-fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. 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. 52 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 59 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water, wastewater, storm sewer and municipal liquor enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETARY INFORMATION Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General Fund 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. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. 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 2011, the budget was not amended. 53 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 60 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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. 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. During 2011, the Parks and Recreation Fund had expenditures of $6,339,667, which exceeded budgeted expenditures of $6,132,463 by $207,204. 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. 54 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 61 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 It is the City’s policy to invest in a manner that seeks to ensure preservation of capital in the overall portfolio. Safety of principal is the foremost objective, but liquidity and yield are also important considerations. The objective will be to mitigate credit risk by purchasing only highly rated securities with adequate collateral and interest rate risk by matching maturities to cash flow needs and holding securities to maturity. G. ACCOUNTS RECEIVABLE Property taxes and special assessment receivables have been reported net of estimated uncollectible accounts (See Note 1 I and J). The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. INTERFUND RECEIVABLES AND PAYABLES Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “interfund loan receivable/payable” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Interfund loan receivables, as reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 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 55 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 62 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because they are not available to finance current expenditures. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City’s property tax revenue includes payment from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation “shared” is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for 2011 and 2010 totaled $2,100,440 and $2,304,347, 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. 56 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 63 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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 revenues. K. MARKET VALUE HOMESTEAD CREDIT The Market Value Homestead Credit program replaces the Homestead and Agricultural Credit Aid (HACA) program. Beginning with taxes payable in 2002, this credit is paid to the City by the State based on market value information provided by the County Auditor. The credit is recognized as revenue at the time of collection. L. 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. M. 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. N. 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 initial, individual cost of more than $5,000 (except for easements and internally generated computer software which is $100,000 and $50,000, respectively) and an estimated useful life of three years or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. 57 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 64 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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, 2011, no interest was capitalized in connection with construction in progress. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight line method over the following estimated useful lives: Buildings and structures 5 – 30 years Improvements other than buildings 5 – 30 years Infrastructure 5 – 100 years Machinery, furniture and equipment (including software) 3 – 30 years Fleet 3 – 25 years Temporary easements 3 – 5 years Capital assets of the water utility and sewer utility operations include the water distribution system and sewer collection system. These systems have been wholly (or substantially) financed by non- operating funds (special assessments, general taxes, federal and state grants, and other sources) and contribution to the Water and Sewer operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. 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. O. 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. 58 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 65 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 P. 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 assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Q. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by Resolution of the City Council. Assigned- consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council Resolution, the City’s Controller and/or City Manager is authorized to establish assignments of fund balance. Unassigned – is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. 59 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 66 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 R. 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. S. 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, 2010, 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. T. NET ASSETS Net assets represent the difference between assets and liabilities. Net assets are displayed in three components. a) Invested in capital assets, net of related debt – consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b) Restricted net assets – consist of net assets 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 assets – all other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt”. U. 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. 60 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 67 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: 1. United States government treasury bills, treasury notes, treasury bonds; 2. Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; 3. General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; 4. General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; 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, 2011, the bank balance of the City’s deposits was $4,028,251, all of which was covered by federal depository insurance or by collateral pledged and held in the City’s name. 61 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 68 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: 1. Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. 3. State and local securities as follows: a) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; b) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and c) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. 4. Bankers acceptance of United States banks. 5. Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 6. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. 7. General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. 62 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 69 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 At December 31, 2011, 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 $1,697,815 $1,697,815 $ - $ - $ - Money market mutual funds NR 28,718,102 28,718,102 - - - Government National Mortgage Association NR 26,856 - - - 26,856 Commercial paper NR 4,177,371 4,177,371 - - Municipal bonds (1) 25,730,791 3,923,741 21,807,050 - - Federal National Mortgage Assn. AA+ 4,053,530 - 4,053,530 - Federal Home Loan Bank notes AA+ 2,008,480 - 2,008,480 - - Federal Farm Credit Bank notes AA+ 1,002,350 - 1,002,350 - - Federal Home Loan Mortgage Corp. notes AA+ 2,010,220 - 2,010,220 - - Other Governmental Securities AA+ 1,061,340 - 1,061,340 - - Total $70,486,855 $38,517,029 $31,942,970 $0 $26,856 Total investments $70,486,855 Deposits 1,660,407 Petty cash 3,984 Total cash and investments $72,151,246 Investment Maturities (in Years) C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security broker/dealers to provide its audited financial statements, proof of NASD certification, proof of state registration, and certification of having read, understood and agreed to comply with the City’s investment policy. Investments in securities are held by the City’s broker-dealer of which $500,000 is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy states the investment portfolio will remain sufficiently liquid to enable the City to meet all operating and capital requirements that might be reasonably anticipated. The maximum maturity of investments shall not extend beyond five years, unless related to specific cash flow needs. Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s 63 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 70 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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: Commercial paper - Fire Station Bonds 5.79% Federal Home Loan Mortgage Corp.5.62% 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, 2011, 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, 2011, the loans receivable balance was $7,937,922. 64 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 71 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Significant receivable balances not expected to be collected within one year of December 31, 2011 are as follows: Special Interfund Loans Assessments Property Loans Receivable Receivable Taxes Receivable Total Major Funds: General Fund $ - $ - $213,000 $ - $213,000 Housing Rehabilitation Fund 2,768,176 30,200 9,500 - 2,807,876 Debt Service Fund 1,745,000 - - - 1,745,000 Permanent Improvement Revolving Fund - 16,800 - 80,948 97,748 Development EDA Fund 2,061,839 2,900 - 5,685,766 7,750,505 Redevelopment District Fund 655,628 - - - 655,628 Water Utility Fund - 75,800 - - 75,800 Sewer Utility Fund - 900 - 451,523 452,423 Solid Waste Fund - - - 440,000 440,000 Nonmajor Governmental Funds 410,031 15,600 - - 425,631 Total $7,640,674 $142,200 $222,500 $6,658,237 $14,663,611 B. DEFERRED REVENUE Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Delinquent property taxes receivable (General Fund) $327,905 $ - Delinquent property taxes receivable (Redevelopment District)14,550 - Special assessments not yet due (Permanent Improvement Revolving) 1,127,200 - Special assessments not yet due (Housing Rehabilitation)4,656,209 - Special assessments not yet due (Development EDA)82,739 - Special assessments not yet due (Nonmajor Funds)207,885 - Bond reimbursement payments not yet due (Debt Service Fund)1,770,000 - Other miscellaneous (Redevelopment Districtrs)12,622 - Other miscellaneous (Nonmajor Funds)5,378 - Revenue not yet earned (General Fund) - 692,141 Revenue not yet earned (Parks and Recreation) - 47,107 Revenue not yet earned (Debt Service Funds) - 15,974 Total deferred/unearned revenue for governmental funds $8,204,488 $755,222 65 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 72 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2011 was as follows: Beginning Ending Primary Government Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $14,383,395 $ - $ - $14,383,395 Permanent easements 1,399,000 - - 1,399,000 Construction in progress 2,491,406 16,567,030 4,878,524 14,179,912 Total capital assets, not being depreciated 18,273,801 16,567,030 4,878,524 29,962,307 Capital assets, being depreciated: Buildings and structures 35,406,181 547,213 204,223 35,749,171 Improvements other than buildings 17,790,120 1,031,726 44,375 18,777,471 Infrastructure 79,916,261 2,011,995 - 81,928,256 Machinery, furniture and equipment 7,242,369 548,471 724,416 7,066,424 Fleet 6,646,337 739,119 494,039 6,891,417 Total capital assets, being depreciated 147,001,268 4,878,524 1,467,053 150,412,739 Less accumulated depreciation for: Buildings and structures 8,105,418 877,345 187,279 8,795,484 Improvements other than buildings 7,298,432 968,703 34,158 8,232,977 Infrastructure 34,392,857 3,016,725 - 37,409,582 Machinery, furniture and equipment 3,532,952 578,624 574,865 3,536,711 Fleet 3,700,968 520,096 386,208 3,834,856 Total accumulated depreciation 57,030,627 5,961,493 1,182,510 61,809,610 Total capital assets being depreciated - net 89,970,641 (1,082,969) 284,543 88,603,129 Governmental activities capital assets - net $108,244,442 $15,484,061 $5,163,067 $118,565,436 66 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 73 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Beginning Ending Primary Government Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $174,844 $ - $ - $174,844 Construction in progress 71,650 947,047 723,635 295,062 Total capital assets, not being depreciated 246,494 947,047 723,635 469,906 Capital assets, being depreciated: Buildings and structures 4,767,723 - - 4,767,723 Improvements other than buildings 6,968,960 - 56,527 6,912,433 Infrastructure 47,591,083 701,335 - 48,292,418 Machinery, furniture and equipment 4,764,614 22,302 110,165 4,676,751 Total capital assets, being depreciated 64,092,380 723,637 166,692 64,649,325 Less accumulated depreciation for: Buildings and structures 3,194,733 127,778 - 3,322,511 Improvements other than buildings 1,551,816 282,005 23,421 1,810,400 Infrastructure 20,892,989 646,170 - 21,539,159 Machinery, furniture and equipment 5,618,714 263,378 110,161 5,771,931 Total accumulated depreciation 31,258,252 1,319,331 133,582 32,444,001 Total capital assets being depreciated - net 32,834,128 (595,694) 33,110 32,205,324 Business-type activities capital assets - net $33,080,622 $351,353 $756,745 $32,675,230 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $124,806 Public safety 180,521 Public works 2,976,736 Public information 48,616 Culture and recreation 1,313,710 Economic development 127,618 Internal service 1,189,486 Total depreciation expense - governmental activities $5,961,493 Business-type activities: Water 640,217 Sewer 117,253 Storm water 561,861 Total depreciation expense - business-type activities $1,319,331 67 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 74 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 5 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, 2011, long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rates Issued 12/31/11 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 $2,125,000 G.O. Improvement Bonds Series 2010A 5/7/2010 2/1/2031 1.25-5.7% 3,105,000 3,105,000 G.O. Improvement Refunding Bonds Series 2010B 5/7/2010 2/1/2025 2.0-3.5% 1,845,000 1,395,000 G.O. Improvement Refunding Bonds Series 2010C 12/29/2010 2/1/1940 3.0-5.65% 1,770,000 1,770,000 G.O. Improvement Bonds Series 2010D (BABS) 12/29/2010 2/1/2032 1.25-5.15% 13,025,000 13,025,000 Total General Improvement Bonds 23,450,000 21,420,000 Tax Increment Bonds: Tax Increment Refunding Bonds Series 2004A 4/7/2004 2/1/2018 2.50-3.70% $7,490,000 $1,415,000 Tax Increment Refunding Bonds Series 2008B 12/11/2008 2/1/2024 3.25-4.63% 5,490,000 5,490,000 Total Tax Increment Bonds 12,980,000 6,905,000 Compensated absences payable N/A N/A N/A N/A 3,544,018 Total governmental activities 36,430,000 31,869,018 Business-Type Activities: General Obligation Revenue Bonds: Utility Revenue Bonds Series 2007 6/5/2007 8/1/2023 4.00% 3,665,000 2,980,000 Utility Revenue Bonds Series 2008A 12/11/2008 8/1/2020 3.25-4.25% 4,075,000 3,740,000 Utility Refunding Revenue Bonds Series 2010B 5/7/2010 2/1/2025 2.0-3.5% 4,090,000 3,835,000 Total General Obligation Revenue Bonds 11,830,000 10,555,000 Compensated absences payable N/A N/A N/A N/A 159,245 Total business-type activities 11,830,000 10,714,245 Total City $48,260,000 $42,583,263 68 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 75 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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 2012 $980,000 $863,939 $305,000 $270,771 2013 1,545,000 834,843 315,000 260,696 2014 1,585,000 799,888 340,000 249,628 2015 1,125,000 765,121 355,000 237,465 2016 1,160,000 730,514 370,000 224,315 2017 710,000 701,310 1,085,000 197,058 2018 730,000 677,851 1,140,000 155,025 2019 745,000 651,553 435,000 124,613 2020 770,000 622,048 460,000 105,563 2021 795,000 589,824 485,000 84,300 2022 815,000 555,618 510,000 61,913 2023 840,000 519,249 535,000 38,400 2024 870,000 478,508 570,000 13,181 2025 900,000 433,576 - - 2026 935,000 386,775 - - 2027 975,000 337,674 - - 2028 1,005,000 286,381 - - 2029 1,045,000 232,890 - - 2030 1,090,000 176,783 - - 2031 1,130,000 118,351 - - 2032 930,000 64,605 - - 2033 75,000 38,633 - - 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 $21,420,000 $11,003,223 $6,905,000 $2,022,928 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. 69 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 76 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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 2012 $955,000 $351,818 2013 985,000 324,393 2014 1,015,000 295,980 2015 1,045,000 265,580 2016 1,080,000 233,761 2017 840,000 201,968 2018 875,000 170,855 2019 910,000 138,193 2020 950,000 103,155 2021 470,000 65,705 2022 490,000 48,486 2023 515,000 30,186 2024 210,000 10,990 2025 215,000 3,763 Total $10,555,000 $2,244,833 G.O. Revenue Bonds Governmental Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 70 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 77 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2011 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $26,335,000 $ - $4,915,000 $21,420,000 $980,000 G.O. tax increment bonds 7,410,000 - 505,000 6,905,000 305,000 Add: Premiums on bonds 14,148 - 3,659 10,489 3,652 Discounts on bonds (187,270) 15,452 - (171,818) 15,452 Total bonds payable 33,571,878 15,452 5,423,659 28,163,671 1,304,104 Compensated absences 3,399,692 2,127,052 1,982,726 3,544,018 2,480,812 Total government activity long-term debt $36,971,570 $2,142,504 $7,406,385 $31,707,689 $3,784,916 Business-type activities: Bonds payable: G.O. revenue bonds $11,335,000 $ - $780,000 $10,555,000 $955,000 Add: Premiums on bonds 27,699 - 2,400 25,299 2,400 Total bonds payable 11,362,699 0 782,400 10,580,299 957,400 Compensated absences 189,524 103,858 134,137 159,245 111,472 Total business-type activity long-term debt $11,552,223 $103,858 $916,537 $10,739,544 $1,068,872 For governmental activities, compensated absences are paid out of the Employee Administrative internal service fund. 71 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 78 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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 2009A Tax Increment Refunding Street & Site Improvements TIF 100% N/A 2009-2011 $ - $510,681 $569,091 2004 Tax Increment Refunding Recreation Building TIF 100% N/A 2005-2018 1,775,983 51,665 569,091 2008B GO Tax Increment Street Improvements TIF 100% N/A 2009-2024 7,201,944 224,063 760,473 2007A GO Utility Revenue Utility Infastructure Projects Utility charges 100% 35% 2008-2023 3,812,600 316,800 5,517,965 2008A GO Utility Revenue Utility Infastructure Projects Utility charges 100% 53% 2009-2020 4,518,900 487,038 3,688,174 2010A Taxable GO HIA Housing Improvement Area Housing improvement fees 100% N/A 2011-2031 4,903,134 171,714 - 2010B GO Utility Infastructure Projects Utility charges 100% 0% 2011-2025 4,468,331 376,607 5,517,465 2000A Louisiana Crt Louisiana Court Project Operating revenues of La Crt 100% N/A 2000-2011 - 3,879,593 104,150 2010C GO Refunding - Louisiana Crt Louisiana Court Project Operating revenues of La Crt 100% N/A 2011-2040 3,381,113 50,059 - Revenue Pledged Current Year Note 6 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. 72 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 79 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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 2011. PEPFF members were required to contribute 9.6% of their annual covered salary in 2011. The City was required to contribute the following percentages of annual covered payroll in 2011: 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, 2011, 2010 and 2009 were $857,443, $814,291 and $810,447, respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2011, 2010 and 2009 were $863,791, $839,083 and $821,953, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by state statute. Note 7 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. 73 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 80 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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. C. PARTICIPANTS As of the actuarial valuation dated January 1, 2011, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 28 Active employees 249 Total 277 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. 74 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 81 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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, 2011, was calculated as follows: Annual required contribution (ARC)$385,198 Interest on net OPEB obligation 41,998 Adjustment to ARC (60,719) Annual OPEB cost 366,477 Contributions made during the year (84,299) Increase (decrease) in net OPEB obligation 282,178 Net OPEB obligation - beginning of year 1,049,961 Net OPEB obligation - end of year $1,332,139 For governmental activities, the net OPEB obligation is generally liquidated by the Employee Administrative internal service fund. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the previous three years was as follows: Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation December 31, 2009 $420,925 $82,847 19.7%$707,906 December 31, 2010 455,835 113,780 25.0%1,049,961 December 31, 2011 366,477 84,299 23.0%1,332,139 75 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 82 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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, 2011 $0 $3,081,141 $3,081,141 0.0%$16,962,171 18.2% *Using the Projected Unit Credit cost method. G. ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2011 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 10% reduced by 1% 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, 2011 was 26 years. 76 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 83 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 8 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, 2011 is as follows: Interfund Interfund Loan Loan Receivable Payable Major Funds: Housing Rehabilitation $ - $1,835,871 Permanent Improvement Revolving 159,244 - Development EDA 5,685,766 - Redevelopment District - 3,849,895 Water Utility - 891,523 Sewer Utility 451,523 - Solid Waste 440,000 - Storm Water Utility - 159,244 Total $6,736,533 $6,736,533 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, 2011 are as follows: Due From Due To Other Funds Other Funds Major Funds: Housing Rehabilitation $50,000 $ - Redevelopment District - 50,000 PIR 233,082 - Street Capital Projects - 173,025 Other: CDBG - 60,057 Total $283,082 $283,082 77 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 84 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Interfund transfers at December 31, 2011 are as follows: Transfers Transfers Notes #'s In Out Notes #'s General Fund (4) (6) $2,553,665 $900,000 (1) Debt Service Fund (5) (7) 1,137,560 154 (7) Redevelopment Fund - 3,326,722 (1) (2) (5) Nonmajor Governmental Fund 437,010 478,520 (3) (4) (8) Internal Service Fund (1) (3) 950,000 57,756 (2) Parks and Recreation Fund (1) (6)68,200 - Housing Rehabilitation Fund (1)500,000 443,079 (4) (5) PIR Fund (8)20,014 256,327 (6) EDA Fund - 116,104 (2) Streets Fund (2) (6) 2,370,080 - Water Fund - 854,594 (2) (4) Sewer Fund - 780,244 (2) (4) Solid Water Fund - 288,100 (4) Storm Water Fund - 534,929 (2) (4) $8,036,529 $8,036,529 (1) To achieve fund balance policy and long term sustainability. (2) To provide funding for capital improvement projects. (3) To reallocate property tax distribution adopted on December 20, 2010. (4) For administrative and overhead costs of the General Fund. (5) To provide funding for debt service payments. (6) Transfer for special assessments. (7) To transfer Louisiana Court interest on reserve to debt service. (8) To reimburse with CDBG funds. 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. 78 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 85 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 9 FUND BALANCE/NET ASSETS During 2010, the City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. A. CLASSIFICATIONS At December 31, 2011, a summary of the governmental fund balance classifications are as follows: Major Funds: General Fund: Nonspendable - prepaid items $57,473 Nonspendable - inventory 13,719 Restricted for E-911 purposes 416,406 Restricted for EMPG grant 11,312 Assigned for DWI enforcement 139,483 Parks and Recreation: Nonspendable - prepaid items 10,000 Nonspendable - inventory 296,058 Assigned for recreation programs 713,201 Housing Rehabilitation: Nonspendable - long-term loans receivable 2,768,176 Debt Service Funds: Restricted for debt service 1,764,911 Permanent Improvement Revolving: Nonspendable - interfund loan receivable 159,244 Assigned for capital improvements 3,935,459 Development EDA: Nonspendable - interfund loan receivable 5,685,766 Nonspendable - long-term loans receivable 2,061,839 Assigned for redevelopment efforts 16,219,647 Redevelopment District: Restricted for tax increment purposes 4,243,020 Restricted for housing redevelopment 4,614,235 Other Governmental Funds: Nonspendable - long-term loans receivable 410,031 Restricted for cable tv equipment purchases 668,349 Restricted - unspent bond proceeds 2,057,900 Restricted for police and fire purchases 4,949,752 Committed for cable tv programming 511,610 Assigned for cable tv programming 401,532 Assigned for special service districts 261,980 Assigned for fire station construction 51,893 Assigned for development of parks 2,597,617 Assigned for street rehabilitation 2,337,166 All Governmental Funds: Unassigned 5,757,001 Total fund balance $63,114,780 79 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 86 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 At December 31, 2011, the City reported $17,695,996 of restricted net assets on the Statement of Net Assets as follows: Restricted for: Tax increment $4,243,020 E-911 purposes 416,406 EMPG grant 11,312 Debt service 2,792,922 Cable TV equipment 668,349 Police and fire purpsoes 4,949,752 Housing and redevelopment 4,614,235 Total $17,695,996 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, 2011, the unassigned fund balance for the General Fund was 46% of the subsequent year’s budgeted expenditures. For the Parks and Recreation Fund, the policy establishes a year end target assigned fund balance in the range of 10-25% of the subsequent year’s budgeted expenditures. At December 31, 2011, the assigned fund balance was approximately 11% of the subsequent year’s budgeted expenditures. Note 10 DEFICIT FUND BALANCE/NET ASSETS At December 31, 2011, individual funds with deficit fund balance/net assets are as follows: Amount Future Financing Source Capital Project Funds: Street Capital Projects $839,815 Future transfers and MSA Redevelopment District: Elmwood Village 3,059,684 Future tax increment Internal Service Funds: Employee Administrative 3,325,662 Future transfers Total $7,225,161 80 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 87 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 11 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 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, 2011, the estimated liability for unpaid claims was immaterial and therefore, has not been recorded in the financial statements. 81 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 88 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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, 2011. D. TAX INCREMENT DISTRICTS The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. The City has issued several tax increment pay-as-you-go revenue notes. These notes are not a general obligation of the City and are payable solely from tax increments. Accordingly, these notes are not reflected in the financial statements of the City. Details of the pay-as-you-go revenue notes are as follows: Hoigaard Village - Tax Exempt Tax Increment Financing Revenue Bonds, Series 2010A – issued in 2010, with a principal sum of $3,495,000, and an interest rate ranging from 1.50% - 5.00% per annum. Semi-annual principal and interest payments shall be paid commencing February 1, 2011 and continuing through February 1, 2023. Payments are payable solely from available tax increment, and the City shall have no obligation to pay any unpaid balance that may remain after the final payment on February 1, 2023. At December 31, 2011 the principal amount outstanding on the bonds was $3,225,000. 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, 2011 the principal amount outstanding on the note was $935,000. 82 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 89 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 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, 2011, the outstanding amount on the bonds is $1,770,000. 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. 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. 83 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 90 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 G. CONSTRUCTION COMMITMENTS The City has active construction projects as of December 31, 2011. 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 Public Art Sculpture - Wooddale Pointe $84,780 Flood Area #25 (27th & Jersey)47,814 Street Improvement for Excelsior Blvd 12,134 Hwy 7/Wooddale Interchange 422,379 Commercial Meter Replacement 95,198 Taft lift station 23,085 SW Regional Trail at Beltline Blvd 12,537 Fern Hill Park Paving 10,400 Fire Station #1 1,677,720 Fire Station #2 960,088 Garage re-roof 13,000 2011 Local St 172,069 WTP #6 Rehab 17,000 Glenhurst Lift Station 24,864 2010 LED Countdown Pedestrian Indicators 16,287 Street maintenance - sealcoat 52,303 2011 Random Concrete Repair 29,880 Northside Park 48,180 Dehumidification project - East Arena 14,262 Well Redevelopment (City Cont #121-11)121,022 Hwy 7 & Louisiana Interchange (Phase I/II)385,567 Park Center Blvd Signals 29,167 Water distribution data collection 24,509 Assessment of storm water basins 16,367 Hydrant flow testing 27,044 Greenworks Landscaping Inc.83,500 Henkemeyer Painting & Floor Coatings 64,500 Twin City Tile and Marble Company 43,130 Total commitments $4,528,785 84 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 91 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 12 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, 2011, there were 12 revenue bonds issued. The aggregate principal amount payable as of December 31, 2011 is $460,868,453. Note 13 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements, but may affect the City in future years: Statement No. 60 Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2011. Statement No. 61 The Financial Reporting Entity Omnibus – An Amendment of GASB No. 14 and No. 34. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012. Statement No. 63 Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2011. Statement No. 65 Items Previously Reported as Assets and Liabilities. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2012. Statement No. 66 Technical Corrections – 2012. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2012. The effect these standards may have on future financial statements is not determinable at this time. 85 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 92 - This page intentionally left blank - 86 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 93 REQUIRED SUPPLEMENTARY INFORMATION 87 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 94 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, 2011 With Comparative Actual Amounts For The Year Ended December 31, 2010 Budgeted Amounts Original Final Revenues: Property taxes $15,426,072 $15,426,072 $15,372,077 ($53,995) $15,061,267 Licenses and permits: Business regulatory licenses 631,440 631,440 667,876 36,436 636,778 Non-business licenses and permits 1,714,470 1,714,470 2,129,714 415,244 1,722,316 Total licenses and permits 2,345,910 2,345,910 2,797,590 451,680 2,359,094 Intergovernmental: Federal 13,000 13,000 22,963 9,963 53,772 State shared taxes: Highway user tax 450,000 450,000 556,134 106,134 479,310 Market value homestead credit - - 572 572 2,723 Insurance premium tax 540,000 540,000 526,223 (13,777) 532,719 State of Minnesota: Other 67,982 67,982 68,706 724 76,341 PERA 45,205 45,205 45,205 - 45,205 Police training reimbursement 20,000 20,000 18,936 (1,064) 18,283 School district - - - - 780 Other local governments - - 4,756 4,756 369,812 Total intergovernmental 1,136,187 1,136,187 1,243,495 107,308 1,578,945 Charges for services: General government 722,943 722,943 726,751 3,808 745,657 Public safety 114,700 114,700 129,184 14,484 103,088 Public works - signals/lighting 330,000 330,000 236,685 (93,315) 295,231 Rent of City property 85,000 85,000 100,000 15,000 100,000 Total charges for services 1,252,643 1,252,643 1,192,620 (60,023) 1,243,976 Fines and forfeits: Municipal court 300,200 300,200 255,750 (44,450) 257,618 Liquor violations 8,000 8,000 - (8,000) 10,000 Property forfeits 5,000 5,000 24,812 19,812 133,847 Miscellaneous violations - - 485 485 89 Total fines and forfeits 313,200 313,200 281,047 (32,153) 401,554 Investment income 200,000 200,000 203,282 3,282 105,927 Miscellaneous 58,900 58,900 36,347 (22,553) 40,285 Total revenues 20,732,912 20,732,912 21,126,458 393,546 20,791,048 2011 Actual Amounts Variance with Final Budget - Positive (Negative) 2010 Actual Amounts 88 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 95 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, 2011 With Comparative Actual Amounts For The Year Ended December 31, 2010 Budgeted Amounts Expenditures: Original Final General government: Administration: Current: Personal services 469,088 469,088 454,531 14,557 482,949 Supplies 2,900 2,900 4,220 (1,320) 2,927 Other services and charges 417,810 417,810 366,414 51,396 354,276 Total administration 889,798 889,798 825,165 64,633 840,152 General services: Supplies - - 3,867 (3,867) 20,812 Other services and charges 240,000 240,000 24,490 215,510 48,445 Capital outlay - - 52,930 (52,930) 209,297 Total general services 240,000 240,000 81,287 158,713 278,554 Human resources: Current: Personal services 497,170 497,170 508,959 (11,789) 485,189 Supplies 2,000 2,000 2,660 (660) 1,691 Other services and charges 153,600 153,600 118,116 35,484 106,448 Total human resources 652,770 652,770 629,735 23,035 593,328 Communications, marketing and community outreach Current: Personal services 276,880 276,880 262,099 14,781 239,914 Materials and supplies 950 950 2,370 (1,420) 5,443 Other services and charges 105,155 105,155 76,390 28,765 77,638 Total communications, etc.382,985 382,985 340,859 42,126 322,995 Technology and support services: Current: Personal services 528,420 528,420 521,680 6,740 525,028 Materials and supplies 29,000 29,000 45,710 (16,710) 51,697 Other services and charges 836,806 836,806 854,470 (17,664) 807,506 Total technology and support services 1,394,226 1,394,226 1,421,860 (27,634) 1,384,231 Accounting: Current: Personal services 452,004 452,004 465,467 (13,463) 419,290 Materials and supplies 3,000 3,000 2,928 72 3,035 Other services and charges 157,960 157,960 156,176 1,784 140,022 Total accounting 612,964 612,964 624,571 (11,607) 562,347 Assessing: Current: Personal services $488,690 $488,690 $495,979 ($7,289) $476,360 Materials and supplies 1,200 1,200 1,673 (473) 1,582 Other services and charges 10,251 10,251 8,773 1,478 10,609 Total assessing 500,141 500,141 506,425 (6,284) 488,551 2011 Actual Amounts Variance with Final Budget - Positive (Negative) 2010 Actual Amounts 89 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 96 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, 2011 With Comparative Actual Amounts For The Year Ended December 31, 2010 Budgeted Amounts Expenditures: (continued) Original Final General government: (continued) Facilities maintenance: Current: Personal services 543,009 543,009 382,540 160,469 471,503 Materials and supplies 99,650 99,650 98,235 1,415 98,506 Other services and charges 471,892 471,892 475,111 (3,219) 369,766 Capital outlay - - - - 13,084 Total facilities maintenance 1,114,551 1,114,551 955,886 158,665 952,859 Community development: Current: Personal services 1,036,336 1,036,336 1,030,830 5,506 978,086 Materials and supplies 1,700 1,700 381 1,319 530 Other services and charges 56,150 56,150 51,249 4,901 40,499 Total community development 1,094,186 1,094,186 1,082,460 11,726 1,019,115 Total general government 6,881,621 6,881,621 6,468,248 413,373 6,442,132 Public safety: Police: Current: Personal services 6,599,679 6,599,679 6,462,621 137,058 6,481,928 Materials and supplies 130,425 130,425 118,817 11,608 109,591 Other services and charges 418,408 418,408 361,943 56,465 380,179 Capital outlay - - - - 14,969 Total police 7,148,512 7,148,512 6,943,381 205,131 6,986,667 Fire protection: Current: Personal services 2,878,201 2,878,201 2,783,186 95,015 2,741,456 Materials and supplies 74,560 74,560 70,388 4,172 72,189 Other services and charges 211,583 211,583 194,747 16,836 175,903 Capital outlay - - 13,641 (13,641) - Total fire protection 3,164,344 3,164,344 3,061,962 102,382 2,989,548 Inspection services: Current: Personal services 1,763,169 1,763,169 1,737,405 25,764 1,625,832 Materials and supplies 17,000 17,000 6,868 10,132 6,106 Other services and charges 83,127 83,127 73,917 9,210 97,214 Total inspection services 1,863,296 1,863,296 1,818,190 45,106 1,729,152 Total public safety 12,176,152 12,176,152 11,823,533 352,619 11,705,367 2011 Actual Amounts Variance with Final Budget - Positive (Negative) 2010 Actual Amounts 90 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 97 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, 2011 With Comparative Actual Amounts For The Year Ended December 31, 2010 Budgeted Amounts Expenditures: (continued) Original Final Public works: Administration: Current: Personal services $795,548 $795,548 $792,480 $3,068 $846,857 Materials and supplies 5,000 5,000 5,152 (152) 3,450 Other services and charges 29,050 29,050 5,628 23,422 22,538 Total administration 829,598 829,598 803,260 26,338 872,845 Engineering: Current: Personal services 773,432 773,432 767,664 5,768 738,778 Materials and supplies 12,850 12,850 2,982 9,868 5,356 Other services and charges 59,850 59,850 45,635 14,215 54,106 Total engineering 846,132 846,132 816,281 29,851 798,240 Operations: Current: Personal services 1,298,285 1,298,285 1,244,224 54,061 1,246,865 Materials and supplies 456,000 456,000 481,121 (25,121) 534,800 Other services and charges 796,000 796,000 735,769 60,231 793,481 Total operations 2,550,285 2,550,285 2,461,114 89,171 2,575,146 Total public works 4,226,015 4,226,015 4,080,655 145,360 4,246,231 Total expenditures 23,283,788 23,283,788 22,372,436 911,352 22,393,730 Revenues over (under) expenditures (2,550,876) (2,550,876) (1,245,978) 1,304,898 (1,602,682) Other financing sources (uses): Transfers in 2,550,876 2,550,876 2,553,665 2,789 2,588,235 Transfers out - - (900,000) (900,000) (1,800,000) Total other financing sources (uses) 2,550,876 2,550,876 1,653,665 (897,211) 788,235 Net change in fund balance $0 $0 407,687 $407,687 (814,447) Fund balance - January 1 11,030,535 11,844,982 Fund balance - December 31 $11,438,222 $11,030,535 2011 Actual Amounts Variance with Final Budget - Positive (Negative) 2010 Actual Amounts 91 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 98 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - PARKS AND RECREATION FUND For The Year Ended December 31, 2011 With Comparative Actual Amounts For The Year Ended December 31, 2010 Budgeted Amounts Original Final Revenues: Property taxes $4,000,561 $4,000,561 $4,000,561 $ - $4,014,872 Licenses and permits 6,600 6,600 110 (6,490) 622 Intergovernmental - other 77,652 77,652 208,535 130,883 89,631 Fines and forfeits - - - - 56 Charges for services 1,097,250 1,097,250 1,086,054 (11,196) 1,022,344 Rental income 923,400 923,400 1,016,184 92,784 924,696 Investment income - - 3,994 3,994 1,349 Miscellaneous 27,000 27,000 21,948 (5,052) 48,366 Total revenues 6,132,463 6,132,463 6,337,386 204,923 6,101,936 Expenditures: Culture and recreation: Current: Personal services 3,536,190 3,536,190 3,523,757 12,433 3,479,624 Supplies 854,846 854,846 973,252 (118,406) 907,777 Other services and charges 1,739,927 1,739,927 1,842,658 (102,731) 1,675,628 Capital outlay 1,500 1,500 - 1,500 - Total expenditures 6,132,463 6,132,463 6,339,667 (207,204) 6,063,029 Revenues over (under) expenditures 0 0 (2,281) (2,281) 38,907 Other financing sources: Transfers in - - 68,200 68,200 42,384 Transfers out - - - - - Proceeds from sale of capital assets - - - - 1,500 Total other financing sources 0 0 68,200 68,200 43,884 Net change in fund balance $0 $0 65,919 $65,919 82,791 Fund balance - January 1 953,340 870,549 Fund balance - December 31 $1,019,259 $953,340 NOTE A BUDGETARY INFORMATION 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 fund level for the General Fund and Parks and Recreation Fund. 2011 Actual Amounts Variance with Final Budget - Positive (Negative) 2010 Actual Amounts 92 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 99 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, 2011 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% *Using the projected unit credit actuarial pay cost method. 93 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 100 - This page intentionally left blank - 94 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 101 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 95 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 102 NONMAJOR GOVERNMENTAL FUNDS 96 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 103 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). 97 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 104 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 12 NONMAJOR GOVERNMENTAL FUNDS December 31, 2011 With Comparative Totals For December 31, 2010 Special Capital Revenue Project 2011 2010 Assets Cash and investments $1,694,257 $9,667,999 $11,362,256 $10,330,694 Accrued interest receivable 6,917 38,953 45,870 34,883 Due from other governments 56,471 - 56,471 92,227 Accounts receivable 150,495 336,666 487,161 379,173 Special assessments receivable: Delinquent 20,812 166 20,978 12,222 Deferred 193,602 4,095 197,697 167,253 Loans receivable - noncurrent 410,031 - 410,031 404,653 Total assets $2,532,585 $10,047,879 $12,580,464 $11,421,105 Liabilities and Fund Balance Liabilities: Accounts payable $19,609 $9,440 $29,049 $124,135 Salaries payable 14,062 - 14,062 13,757 Due to other governments 55 2,700 2,755 324 Nonmajor Totals Governmental Funds Due to other governments 55 2,700 2,755 324 Contracts payable - 146,943 146,943 176,371 Due to other funds 60,057 - 60,057 66,659 Deferred revenue 208,971 4,261 213,232 179,453 Total liabilities 302,754 163,344 466,098 560,699 Fund balance: Nonspendable 410,031 - 410,031 404,653 Restricted 668,349 4,949,752 5,618,101 5,531,770 Committed 511,610 - 511,610 466,792 Assigned 663,512 4,934,783 5,598,295 4,469,872 Unassigned (23,671) - (23,671) (12,681) Total fund balance 2,229,831 9,884,535 12,114,366 10,860,406 Total liabilities and fund balance $2,532,585 $10,047,879 $12,580,464 $11,421,105 98 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 105 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 Special Capital Revenue Project 2011 2010 Revenues: Taxes: Property $ - $1,934,000 $1,934,000 $1,225,000 Franchise 596,197 1,298,517 1,894,714 1,497,178 Intergovernmental: Other 94,038 44,702 138,740 285,816 Charges for services 215,446 25,307 240,753 19,210 Special assessments 200,812 - 200,812 155,477 Interest on investments 26,889 166,109 192,998 103,641 Miscellaneous 6,447 469,575 476,022 19,454 Total revenues 1,139,829 3,938,210 5,078,039 3,305,776 Expenditures: Current: Public safety - 14,043 14,043 1,504 Public works - 232,275 232,275 244,069 Public information 383,586 - 383,586 387,459 Culture and recreation - 206,387 206,387 171,909 Housing and maintenance 79,786 - 79,786 241,170 Totals Nonmajor Governmental Funds Housing and maintenance 79,786 79,786 241,170 Social economic development 229,953 - 229,953 239,262 Capital outlay: Public works - 1,088,217 1,088,217 1,095,389 Public information - - - 92,086 Culture and recreation - 1,548,322 1,548,322 990,548 Total expenditures 693,325 3,089,244 3,782,569 3,463,396 Revenues over (under) expenditures 446,504 848,966 1,295,470 (157,620) Other financing sources (uses): Transfers in - 437,010 437,010 557,227 Transfers out (194,520) (284,000) (478,520) (400,942) Proceeds from sale of capital assets - - - 6,400 Total other financing sources (uses)(194,520)153,010 (41,510)162,685 Net change in fund balance 251,984 1,001,976 1,253,960 5,065 Fund balance - January 1, as previously stated 1,977,847 8,882,559 10,860,406 10,456,066 Prior period adjustment - - - 399,275 Fund balance - January 1, as restated 1,977,847 8,882,559 10,860,406 10,855,341 Fund balance - December 31 $2,229,831 $9,884,535 $12,114,366 $10,860,406 99 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 106 - This page intentionally left blank - 100 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 107 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. 101 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 108 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 14 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2011 With Comparative Totals For December 31, 2010 2011 2010 Assets Cash and investments $1,439,983 $ - $254,274 $1,694,257 $1,514,433 Accrued interest receivable 6,018 - 899 6,917 5,377 Due from other governments - 56,471 - 56,471 92,227 Accounts receivable 150,495 - - 150,495 148,863 Special assessments receivable: Delinquent - - 20,812 20,812 12,056 Deferred - - 193,602 193,602 167,253 Loans receivable - noncurrent - 410,031 - 410,031 404,653 Total assets $1,596,496 $466,502 $469,587 $2,532,585 $2,344,862 Liabilities and Fund Balance Liabilities: Accounts payable $888 $14,707 $4,014 $19,609 $107,294 Salaries payable 14 062 14 062 13 757 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts Salaries payable 14,062 - - 14,062 13,757 Due to other governments 55 - - 55 18 Due to other funds - 60,057 - 60,057 66,659 Deferred revenue - 5,378 203,593 208,971 179,287 Total liabilities 15,005 80,142 207,607 302,754 367,015 Fund balance: Nonspendable - 410,031 - 410,031 404,653 Restricted 668,349 - - 668,349 475,062 Committed 511,610 - - 511,610 466,792 Assigned 401,532 - 261,980 663,512 644,021 Unassigned - (23,671) - (23,671) (12,681) Total fund balance 1,581,491 386,360 261,980 2,229,831 1,977,847 Total liabilities and fund balance $1,596,496 $466,502 $469,587 $2,532,585 $2,344,862 102 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 109 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 2011 2010 Revenues: Franchise taxes $596,197 $ - $ - $596,197 $586,353 Intergovernmental - other - 94,038 - 94,038 241,114 Charges for services 200,000 - 15,446 215,446 7,372 Special assessments - - 200,812 200,812 154,878 Interest on investments 23,267 - 3,622 26,889 14,737 Miscellaneous 1,271 150 5,026 6,447 9,205 Total revenues 820,735 94,188 224,906 1,139,829 1,013,659 Expenditures: Current: Public information: Personal services 360,283 - - 360,283 342,463 Supplies 13,194 - - 13,194 15,217 Other services and charges 10,109 - - 10,109 29,779 Housing maintenance: Personal services - 5,721 - 5,721 14,157 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts Other services and charges - 74,065 - 74,065 227,013 Social and economic development: Supplies - - 20,607 20,607 13,601 Other services and charges - - 209,346 209,346 225,661 Capital outlay: Public information - - - - 92,086 Total expenditures 383,586 79,786 229,953 693,325 959,977 Revenues over (under) expenditures 437,149 14,402 (5,047) 446,504 53,682 Other financing sources (uses): Transfers out (174,506) (20,014) - (194,520) (166,942) Proceeds from sale of capital assets - - - - 6,400 Total other financing sources (uses) (174,506) (20,014) 0 (194,520) (160,542) Net change in fund balance 262,643 (5,612) (5,047) 251,984 (106,860) Fund balance - January 1, as previously stated 1,318,848 391,972 267,027 1,977,847 1,685,432 Prior period adjustment - - - - 399,275 Fund balance - January 1, as restated 1,318,848 391,972 267,027 1,977,847 2,084,707 Fund balance - December 31 $1,581,491 $386,360 $261,980 $2,229,831 $1,977,847 103 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 110 - This page intentionally left blank - 104 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 111 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 levey. 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. 105 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 112 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 16 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2011 With Comparative Totals For December 31, 2010 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions 2011 2010 Assets Cash and investments $2,666,171 $2,069,916 $4,931,912 $9,667,999 $8,816,261 Accrued interest receivable 9,186 8,797 20,970 38,953 29,506 Accounts receivable - 333,537 3,129 336,666 230,310 Special assessments - delinquent 38 128 - 166 166 Special assessments - deferred - 4,095 - 4,095 - Total assets $2,675,395 $2,416,473 $4,956,011 $10,047,879 $9,076,243 Liabilities and Fund Balance Liabilities: Accounts payable $3,181 $ - $6,259 $9,440 $16,841 Due to other governments 2,700 - - 2,700 306 Contracts payable 71,859 75,084 - 146,943 176,371 Deferred revenue 38 4,223 - 4,261 166 Total liabilities 77,778 79,307 6,259 163,344 193,684 Totals Nonmajor Capital Project Funds Fund balance: Restricted - - 4,949,752 4,949,752 5,056,708 Assigned 2,597,617 2,337,166 - 4,934,783 3,825,851 Total fund balance 2,597,617 2,337,166 4,949,752 9,884,535 8,882,559 Total liabilities and fund balance $2,675,395 $2,416,473 $4,956,011 $10,047,879 $9,076,243 106 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 113 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions Revenues:2011 2010 Taxes: Property taxes $1,519,000 $415,000 $ - $1,934,000 $1,225,000 Franchise - 1,298,517 - 1,298,517 910,825 Intergovernmental: Other 44,702 - - 44,702 44,702 Charges for services 9,000 16,307 - 25,307 11,838 Special assessments - - - - 599 Investment income 37,425 40,727 87,957 166,109 88,904 Miscellaneous 466,445 - 3,130 469,575 10,249 Total revenues 2,076,572 1,770,551 91,087 3,938,210 2,292,117 Expenditures: Current: Public safety - - 14,043 14,043 1,504 Public works - 232,275 - 232,275 244,069 Culture and recreation 206,387 - - 206,387 171,909 Capital outlay: Public works - 1,088,217 - 1,088,217 1,095,389 Totals Nonmajor Capital Project Funds Public works 1,088,217 1,088,217 1,095,389 Culture and recreation 1,548,322 - - 1,548,322 990,548 Total expenditures 1,754,709 1,320,492 14,043 3,089,244 2,503,419 Revenues over (under) expenditures 321,863 450,059 77,044 848,966 (211,302) Other financing sources (uses): Transfers in - 437,010 - 437,010 557,227 Transfers out - (100,000) (184,000) (284,000) (234,000) Total other financing sources (uses)0 337,010 (184,000) 153,010 323,227 Net change in fund balance 321,863 787,069 (106,956) 1,001,976 111,925 Fund balance - January 1 2,275,754 1,550,097 5,056,708 8,882,559 8,770,634 Fund balance - December 31 $2,597,617 $2,337,166 $4,949,752 $9,884,535 $8,882,559 107 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 114 - This page intentionally left blank - 108 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 115 MAJOR DEBT SERVICE FUNDS 3400 - 1999 General Obligation Bond 3450 - 2003 General Obligation Bond 3460 – 2010A General Obligation Bond 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 3835 – 2009A General Obligation Tax Increment Refunding 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 109 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 116 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR DEBT SERVICE FUNDS December 31, 2011 With Comparative Totals For December 31, 2010 3400 1999 General Obligation Bond 3450 2003 General Obligation Bond 3460 2010A General Obligation Bond 3470 2010B General Obligation Bond 3480 2010D General Obligation Fire Station Bond Assets Cash and investments $57,962 $566,827 $83,400 $10,146 $183,223 Accrued interest receivable 246 2,403 - - 766 Due from other governments - - - - 95,842 Loans receivable - current - - - - - Loans receivable - noncurrent - - - - - Total assets $58,208 $569,230 $83,400 $10,146 $279,831 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $255 $79 $255 Due to other funds - - - - - Deposits payable - - - - - Deferred revenue ----15,974Deferred revenue - - - - 15,974 Total liabilities 0 0 255 79 16,229 Fund balance: Restricted 58,208 569,230 83,145 10,067 263,602 Unassigned - - - - - Total fund balance 58,208 569,230 83,145 10,067 263,602 Total liabilities and fund balance $58,208 $569,230 $83,400 $10,146 $279,831 110 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 117 Statement 18 3600 2000 General Obligation Bond Reserve 3615 2010C General Obligation Bond 3620 2010C General Obligation Bond Reserve 3870 2005A General Obligation Bond 3890 2008B General Obligation Tax Increment Bond 2011 2010 $121,105 $75,461 $36,681 $582,691 $106 $1,717,602 $6,138,467 - - - 1,786 - 5,201 5,184 - - - - - 95,842 - - 25,000 - - - 25,000 - - 1,745,000 - - - 1,745,000 1,770,000 $121,105 $1,845,461 $36,681 $584,477 $106 $3,588,645 $7,913,651 $ - $255 $ - $256 $ - $1,100 $2,000 - - - - - - - - - 36,660 - - 36,660 - -1,770,000 ---1,785,974 1,770,000 Totals Debt Service Funds - 1,770,000 - - - 1,785,974 1,770,000 0 1,770,255 36,660 256 0 1,823,734 1,772,000 121,105 75,206 21 584,221 106 1,764,911 6,141,651 - - - - - - - 121,105 75,206 21 584,221 106 1,764,911 6,141,651 $121,105 $1,845,461 $36,681 $584,477 $106 $3,588,645 $7,913,651 111 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 118 - This page intentionally left blank - 112 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 119 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 3400 1999 General Obligation Bond 3450 2003 General Obligation Bond 3460 2010A General Obligation Bond 3470 2010B General Obligation Bond 3480 2010D General Obligation Fire Station Bond Revenues: Property taxes $ - $ - $ - $501,795 $ - Intergovernmental - - - - 192,749 Interest on investments 306 10,616 - - 5,872 Miscellaneous - other - - - - - Total revenues 306 10,616 0 501,795 198,621 Expenditures: Social economic development: Developer assistance - - - - - Debt service: Principal 310,000 - - 450,000 - Interest and other 9,073 199 171,969 41,588 322,881 Fiscal agent fees - - 450 140 - Bond issuance costs - - - - - Total expenditures 319,073 199 172,419 491,728 322,881Total expenditures 319,073 199 172,419 491,728 322,881 Revenues over (under) expenditures (318,767) 10,417 (172,419) 10,067 (124,260) Other financing sources (uses): Transfers in - - 255,564 - - Transfers out - - - - - Bond premium - - - - - Bonds issued - - - - - Refunding bonds issued - - - - - Redemption of refunded bonds - - - - - Refunding TIF notes issued - - - - - Redemption of TIF notes - - - - - Payments to refunded bond escrow agent - - - - - Total other financing sources (uses)0 0 255,564 0 0 Net change in fund balance (318,767) 10,417 83,145 10,067 (124,260) Fund balance - January 1, as previously stated 376,975 558,813 - - 387,862 Prior period adjustment - - - - - Fund balance - January 1, as restated 376,975 558,813 0 0 387,862 Fund balance (deficit) - December 31 $58,208 $569,230 $83,145 $10,067 $263,602 113 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 120 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 3600 2000 General Obligation Bond Reserve 3610 2000 General Obligation Bond 3615 2010C General Obligation Bond 3620 2010C General Obligation Bond Reserve Revenues: Property taxes $ - $ - $ - $ - Intergovernmental - - - - Interest on investments 154 - 59 21 Miscellaneous - other - 29,124 125,757 - Total revenues 154 29,124 125,816 21 Expenditures: Social economic development: Developer assistance - - - - Debt service: Principal - 3,770,000 - - Interest and other - 109,593 50,314 - Fiscal agent fees - - 450 - Bond issuance costs - - - - Total expenditures 0 3,879,593 50,764 0Total expenditures 0 3,879,593 50,764 0 Revenues over (under) expenditures 154 (3,850,469)75,052 21 Other financing sources (uses): Transfers in - - 154 - Transfers out (154) - - - Bond premium - - - - Bonds issued - - - - Refunding bonds issued - - - - Redemption of refunded bonds - - - - Refunding TIF notes issued - - - - Redemption of TIF notes - - - - Payments to refunded bond escrow agent - - - - Total other financing sources (uses)(154)0 154 0 Net change in fund balance 0 (3,850,469)75,206 21 Fund balance - January 1, as previously stated 121,105 3,850,469 - - Prior period adjustment - - - - Fund balance - January 1, as restated 121,105 3,850,469 0 0 Fund balance (deficit) - December 31 $121,105 $0 $75,206 $21 114 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 121 Statement 19 Page 2 of 2 3835 2009A General Obligation Tax Increment Refunding 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 2011 2010 $ - $ - $495,200 $ - $ - $996,995 $1,358,700 - - - - - 192,749 - - - 4,456 - - 21,484 4,176 - - - - - 154,881 2,083,506 0 0 499,656 0 0 1,366,109 3,446,382 - - - 382,119 - 382,119 - 505,000 - 385,000 - - 5,420,000 2,170,000 5,681 51,665 85,282 - 228,851 1,077,096 1,076,833 - - - - - 1,040 - - - - - - - 259,389 510,681 51,665 470,282 382,119 228,851 6,880,255 3,506,222 Totals Debt Service Funds 510,681 51,665 470,282 382,119 228,851 6,880,255 3,506,222 (510,681) (51,665) 29,374 (382,119) (228,851) (5,514,146) (59,840) 510,681 51,665 - 215,882 103,614 1,137,560 1,751,750 - - - - - (154) (204,041) - - - - - - 2,792 - - - - - - 387,628 - - - - - - 3,615,000 - - - - - - (1,825,000) - - - - - - 4,430,000 - - - - - - (4,164,000) - - - - - - - 510,681 51,665 0 215,882 103,614 1,137,406 3,994,129 0 0 29,374 (166,237) (125,237) (4,376,740) 3,934,289 - - 554,847 166,237 125,343 6,141,651 2,198,070 - - - - - - 9,292 0 0 554,847 166,237 125,343 6,141,651 2,207,362 $0 $0 $584,221 $0 $106 $1,764,911 $6,141,651 115 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 122 - This page intentionally left blank - 116 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 123 MAJOR REDEVELOPMENT DISTRICT FUNDS 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 117 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 124 - This page intentionally left blank - 118 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 125 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 20 MAJOR REDEVELOPMENT DISTRICT FUNDS Page 1 of 2 December 31, 2011 With Comparative Totals For December 31, 2010 4780 Duke West End TIF 4785 Ellipse TIF District 4798 HRA Levy 4855 Trunk Highway 7 4865 HSTI Assets Cash and investments $647,827 $3,144 $4,592,274 $777,669 $710,044 Accrued interest receivable 1,989 4 22,471 3,330 4,460 Accounts receivable - - - - - Taxes receivable - unremitted - - 5,490 - - Taxes receivable - delinquent - - 14,550 - - Due from other funds - - - - - Loans receivable - noncurrent - - - - - Total assets $649,816 $3,148 $4,634,785 $780,999 $714,504 Liabilities and Fund Balance Liabilities: Accounts payable $731 $475 $6,000 $256 $549 Due to other governments 1,296 439 - 12,015 1,729 Due to other funds - - - - - Interfund loan payable 419,767 - - - - Deposits payable - - - - - Deferred revenue - - 14,550 - - Total liabilities 421,794 914 20,550 12,271 2,278 Fund balance (deficit): Restricted 228,022 2,234 4,614,235 768,728 712,226 Unassigned - - - - - Total fund balance (deficit)228,022 2,234 4,614,235 768,728 712,226 Total liabilities and fund balance $649,816 $3,148 $4,634,785 $780,999 $714,504 119 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 126 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR REDEVELOPMENT DISTRICT FUNDS December 31, 2011 With Comparative Totals For December 31, 2010 4870 Victoria Ponds 4875 Park Center Housing 4880 CSM TIF District 4900 Mill City TIF District 4920 Park Commons TIF District Assets Cash and investments $650,429 $32,099 $393,403 $164,614 $476,207 Accrued interest receivable 2,151 1,257 1,174 352 - Accounts receivable - - - - - Taxes receivable - unremitted 1,913 - 1,161 - 18,739 Taxes receivable - delinquent - - - - - Due from other funds - - - - - Loans receivable - noncurrent - 655,628 - - - Total assets $654,493 $688,984 $395,738 $164,966 $494,946 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $475 $475 $475 Due to other governments 1,260 523 1,149 733 4,603 Due to other funds - 50,000 - - - Interfund loan payable - - - - - Deposits payable - - - - - Deferred revenue - 12,622 - - - Total liabilities 1,260 63,145 1,624 1,208 5,078 Fund balance (deficit): Restricted 653,233 625,839 394,114 163,758 489,868 Unassigned - - - - - Total fund balance (deficit)653,233 625,839 394,114 163,758 489,868 Total liabilities and fund balance $654,493 $688,984 $395,738 $164,966 $494,946 120 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 127 Statement 20 Page 2 of 2 4930 Edgewood TIF District 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons 4980 Highway 7 Business Center 2011 2010 $21,653 $425,406 $75,972 $96,826 $14,543 $9,082,110 $7,949,908 120 1,927 163 138 - 39,536 28,521 - - - - - - - - 15,170 - - - 42,473 59,548 - - - - - 14,550 20,657 - - - - - - - - - - - - 655,628 643,006 $21,773 $442,503 $76,135 $96,964 $14,543 $9,834,297 $8,701,640 $475 $68,721 $475 $475 $475 $80,057 $26,150 477 3,338 540 924 576 29,602 25,361 - - - - - 50,000 - - 3,430,128 - - - 3,849,895 3,700,125 - - - - - - - - - - - - 27,172 20,657 952 3,502,187 1,015 1,399 1,051 4,036,726 3,772,293 20,821 - 75,120 95,565 13,492 8,857,255 8,637,400 - (3,059,684) - - - (3,059,684) (3,708,053) 20,821 (3,059,684) 75,120 95,565 13,492 5,797,571 4,929,347 $21,773 $442,503 $76,135 $96,964 $14,543 $9,834,297 $8,701,640 Totals Redevelopment District Funds 121 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 128 - This page intentionally left blank - 122 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 129 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 4780 Duke West End TIF 4785 Ellipse TIF District 4798 HRA Levy 4855 Trunk Highway 7 4865 HSTI Revenues: Property taxes $ - $ - $989,016 $ - $ - Tax increments 760,473 10,574 - 1,128,010 1,104,834 Intergovernmental - - 31,747 - - Interest on investments 4,081 10 93,269 9,167 18,463 Total revenues 764,554 10,584 1,114,032 1,137,177 1,123,297 Expenditures: Current: Social and economic development 25,613 5,076 52,867 5,391 1,057,595 Capital outlay: Social and economic development - - - - - Total expenditures 25,613 5,076 52,867 5,391 1,057,595 Revenues over (under) expenditures 738,941 5,508 1,061,165 1,131,786 65,702 Other financing sources (uses): Transfers in - - - - - Transfers out (103,614) - (1,549,826) (562,346) - Total other financing sources (uses)(103,614)0 (1,549,826) (562,346)0 Net change in fund balance 635,327 5,508 (488,661) 569,440 65,702 Fund balance (deficit) - January 1, as previously stated (407,305) (3,274) 5,102,896 199,288 646,524 Prior period adjustment - - - - - Fund balance (deficit) - January 1, as restated (407,305) (3,274) 5,102,896 199,288 646,524 Fund balance (deficit) - December 31 $228,022 $2,234 $4,614,235 $768,728 $712,226 123 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 130 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, 2011 With Comparative Totals For The Year Ended December 31, 2010 4870 Victoria Ponds 4875 Park Center Housing 4880 CSM TIF District 4900 Mill City TIF District 4920 Park Commons TIF District Revenues: Property taxes $ - $ - $ - $ - $ - Tax increments 439,610 104,455 345,339 245,291 1,665,974 Intergovernmental 5,773 - 9,269 - 23,754 Interest on investments 7,529 4,999 4,038 1,526 - Total revenues 452,912 109,454 358,646 246,817 1,689,728 Expenditures: Current: Social and economic development 155,964 4,624 337,072 301,972 1,685,491 Capital outlay: Social and economic development - - - - - Total expenditures 155,964 4,624 337,072 301,972 1,685,491 Revenues over (under) expenditures 296,948 104,830 21,574 (55,155) 4,237 Other financing sources (uses): Transfers in - - - - - Transfers out - (500,000) - - - Total other financing sources (uses)0 (500,000)0 0 0 Net change in fund balance 296,948 (395,170) 21,574 (55,155) 4,237 Fund balance (deficit) - January 1, as previously stated 356,285 1,021,009 372,540 218,913 485,631 Prior period adjustment - - - - - Fund balance (deficit) - January 1, as restated 356,285 1,021,009 372,540 218,913 485,631 Fund balance (deficit) - December 31 $653,233 $625,839 $394,114 $163,758 $489,868 124 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 131 Statement 21 Page 2 of 2 4930 Edgewood TIF District 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons 4980 Highway 7 Business Center 2011 2010 $ - $ - $ - $ - $ - $989,016 $1,003,783 25,253 962,338 117,279 161,989 151,557 7,222,976 6,649,563 - 110,514 - 16,719 - 197,776 103,111 318 5,497 398 192 - 149,487 86,479 25,571 1,078,349 117,677 178,900 151,557 8,559,255 7,842,936 39,133 229,623 122,760 188,100 153,028 4,364,309 3,643,807 - - - - - - - 39,133 229,623 122,760 188,100 153,028 4,364,309 3,643,807 (13,562) 848,726 (5,083) (9,200) (1,471) 4,194,946 4,199,129 - - - - - - 415,844 - (610,936) - - - (3,326,722) (7,027,152) 0 (610,936)0 0 0 (3,326,722) (6,611,308) (13,562) 237,790 (5,083) (9,200) (1,471) 868,224 (2,412,179) 34,383 (3,297,474) 80,203 104,765 14,963 4,929,347 6,398,168 - - - - - - 943,358 34,383 (3,297,474) 80,203 104,765 14,963 4,929,347 7,341,526 $20,821 ($3,059,684) $75,120 $95,565 $13,492 $5,797,571 $4,929,347 Totals Redevelopment District Funds 125 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 132 - This page intentionally left blank - 126 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 133 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. 127 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 134 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2011 With Comparative Amounts For December 31, 2010 2011 2010 Assets: Current assets: Cash and investments $1,405,389 $811,937 Accrued interest receivable 6,257 4,106 Due from other governments - 114,158 Accounts receivable 14,184 - Prepaid items 79,770 75,805 Deposits receivable 31,000 31,000 Total current assets 1,536,600 1,037,006 Noncurrent assets: Capital assets, at cost: Land - - 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 1,536,600 1,037,006 Liabilities: Current liabilities: Accounts payable 25,935 29,446 Salaries payable 436 11,789 Accrued flex spending 29,661 28,062 Due to other governments 7,028 5,910 Contracts payable - - Due to other funds - - Compensated absences payable 2,480,812 2,379,784 Lease payable - - Total current liabilities 2,543,872 2,454,991 Noncurrent liabilities: Compensated absences payable 1,063,206 1,019,908 Other postemployment benefits payable 1,255,184 992,616 Total noncurrent liabilities 2,318,390 2,012,524 Total liabilities 4,862,262 4,467,515 Net assets: Invested in capital assets, net of related debt - - Unrestricted (3,325,662)(3,430,509) Total net assets ($3,325,662)($3,430,509) 6100 Employee Administrative 128 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 135 Statement 22 2011 2010 2011 2010 2011 2010 $566,298 $592,131 $2,660,792 $3,884,474 $4,632,479 $5,288,542 2,443 2,226 10,864 455 19,564 6,787 - - 78,210 34,500 78,210 148,658 1,400 - - - 15,584 - 101,637 94,278 12,663 11,200 194,070 181,283 - - - - 31,000 31,000 671,778 688,635 2,762,529 3,930,629 4,970,907 5,656,270 - - 818,094 818,094 818,094 818,094 - - 9,592,102 8,691,805 9,592,102 8,691,805 - - 5,620,990 5,551,929 5,620,990 5,551,929 - - 6,576,875 6,331,798 6,576,875 6,331,798 - - 654 - 654 - 0 0 22,608,715 21,393,626 22,608,715 21,393,626 - - (6,819,301) (6,142,645) (6,819,301) (6,142,645) 0 0 15,789,414 15,250,981 15,789,414 15,250,981 671,778 688,635 18,551,943 19,181,610 20,760,321 20,907,251 4,274 6,590 112,109 46,827 142,318 82,863 - - - - 436 11,789 - - - - 29,661 28,062 - - 15,802 2,761 22,830 8,671 - - 270,263 251,916 270,263 251,916 - - - - - - - - - - 2,480,812 2,379,784 - - - - - - 4,274 6,590 398,174 301,504 2,946,320 2,763,085 - - - - 1,063,206 1,019,908 - - - - 1,255,184 992,616 0 0 0 0 2,318,390 2,012,524 4,274 6,590 398,174 301,504 5,264,710 4,775,609 - - 15,789,409 15,250,981 15,789,409 15,250,981 667,504 682,045 2,364,360 3,629,125 (293,798)880,661 $667,504 $682,045 $18,153,769 $18,880,106 $15,495,611 $16,131,642 Totals6200 Uninsured Loss 6400 Capital Replacement 129 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 136 - This page intentionally left blank - 130 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 137 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES AND Statement 23 CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2011 With Comparative Amounts For The Year Ended December 31, 2010 2011 2010 2011 2010 2011 2010 2011 2010 Operating revenues: Charges for services $ - $ - $ - $ - $626,983 $626,983 $626,983 $626,983 Other 274,836 51,409 117,436 66,089 25,833 - 418,105 117,498 Total operating revenues 274,836 51,409 117,436 66,089 652,816 626,983 1,045,088 744,481 Operating expenses: Personal services 981,352 618,144 13,166 12,648 - - 994,518 630,792 Supplies - - - - 240,126 153,546 240,126 153,546 Professional services 13,602 12,656 - - 53 144,695 13,655 157,351 Insurance - - 127,194 81,971 - - 127,194 81,971 Depreciation - - - - 1,189,486 1,087,929 1,189,486 1,087,929 Other 79,345 83,053 2,111 2,723 514,648 259,831 596,104 345,607 Total operating expenses 1,074,299 713,853 142,471 97,342 1,944,313 1,646,001 3,161,083 2,457,196 Operating income (loss)(799,463) (662,444) (25,035) (31,253) (1,291,497) (1,019,018) (2,115,995) (1,712,715) Nonoperating revenues (expenses): Investment income 33,671 9,897 10,494 7,099 54,720 - 98,885 16,996 Property taxes - - - - 338,300 338,300 338,300 338,300 Intergovernmental revenue 20,639 114,158 - - 78,210 493,375 98,849 607,533 Net gain on disposal of assets - - - - 51,686 26,553 51,686 26,553 Total nonoperating revenues (expenses)54,310 124,055 10,494 7,099 522,916 858,228 587,720 989,382 Income (loss) before transfers (745,153) (538,389) (14,541) (24,154) (768,581) (160,790) (1,528,275) (723,333) Transfers in 850,000 1,000,000 - - 100,000 5,554,987 950,000 6,554,987 Transfers out - - - (25,094) (57,756) (5,934) (57,756) (31,028) Total transfers 850,000 1,000,000 0 (25,094) 42,244 5,549,053 892,244 6,523,959 Change in net assets 104,847 461,611 (14,541) (49,248) (726,337) 5,388,263 (636,031) 5,800,626 Net assets - January 1 (3,430,509) (3,892,120) 682,045 731,293 18,880,106 13,491,843 16,131,642 10,331,016 Net assets - December 31 ($3,325,662) ($3,430,509) $667,504 $682,045 $18,153,769 $18,880,106 $15,495,611 $16,131,642 Totals 6100 Employee Administrative 6200 Uninsured Loss 6400 Capital Replacement 131 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 138 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2011 With Comparative Amounts For The Year Ended December 31, 2010 2011 2010 Cash flows from operating activities: Receipts from interfund services provided $99,974 ($114,158) Other receipts 274,836 51,409 Payments to suppliers (99,305)69,166 Payments to employees (584,212)(123,945) Net cash flows provided by (used in) operating activities (308,707)(117,528) Cash flows from noncapital financing activities: Transfers in 850,000 1,000,000 Transfers out - - Borrowing (payments) on interfund balances - (197,250) Intergovernmental receipts 20,639 114,158 Intergovernmental payments - - Net cash flows provided by (used in) noncapital financing activities 870,639 916,908 Cash flows from capital and related financing activities: 6100 Employee Administrative 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 31,520 12,557 Net increase (decrease) in cash and cash equivalents 593,452 811,937 Cash and cash equivalents - January 1 811,937 - Cash and cash equivalents - December 31 $1,405,389 $811,937 132 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 139 Statement 24 Page 1 of 2 2011 2010 2011 2010 2011 2010 ($1,400) $93,908 $583,273 $592,483 $681,847 $572,233 117,436 66,089 25,833 - 418,105 117,498 (138,980) (95,815)(659,620) (1,301,101)(897,905) (1,327,750) (13,166) (12,648) - - (597,378) (136,593) (36,110)51,534 (50,514) (708,618)(395,331) (774,612) - - 100,000 5,554,987 950,000 6,554,987 - (25,094)(57,756)(5,934)(57,756) (31,028) - - - (197,250) - - 416,510 831,675 437,149 945,833 - - - - - - 0 (25,094)458,754 6,380,728 1,329,393 7,272,542 6400 Capital Replacement Totals6200 Uninsured Loss - - (1,731,815) (4,776,745)(1,731,815) (4,776,745) - - 55,582 28,184 55,582 28,184 0 0 (1,676,233) (4,748,561)(1,676,233) (4,748,561) 10,277 7,858 44,311 11,638 86,108 32,053 (25,833)34,298 (1,223,682) 935,187 (656,063) 1,781,422 592,131 557,833 3,884,474 2,949,287 5,288,542 3,507,120 $566,298 $592,131 $2,660,792 $3,884,474 $4,632,479 $5,288,542 133 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 140 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2011 With Comparative Amounts For The Year Ended December 31, 2010 2011 2010 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)($799,463)($662,444) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation - - Changes in assets and liabilities: Decrease (increase) in: Accounts receivable 99,974 (114,158) Prepaid items (3,965)170,130 Increase (decrease) in: Accounts payable (2,393)(5,255) Contracts payable - - Accrued salaries payable (11,353)8,484 Accrued flex spending 1,599 (6,300) Compensated absences payable 144,326 173,019 Other postemployment benefits 262,568 318,996 Total adjustments 490,756 544,916 6100 Employee Administrative Total adjustments 490,756 544,916 Net cash provided by (used in) operating activities ($308,707)($117,528) Supplemental schedule of noncash capital and related financing activities Capital assets purchased on account $ - $ - Disposal of capital assets $ - $ - 134 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 141 Statement 24 Page 2 of 2 2011 2010 2011 2010 2011 2010 ($25,035) ($31,253)($1,291,497) ($1,019,018)($2,115,995) ($1,712,715) - - 1,189,486 1,087,929 1,189,486 1,087,929 (1,400)93,908 (43,710) (34,500)54,864 (54,750) (7,359) (13,741)(1,463) (11,200)(12,787) 145,189 (2,316)2,620 78,323 (154,115)73,614 (156,750) - - 18,347 (577,714)18,347 (577,714) - - - - (11,353)8,484 - - - - 1,599 (6,300) - - - - 144,326 173,019 - - - - 262,568 318,996 (11,075)82,787 1,240,983 310,400 1,720,664 938,103 6200 Uninsured Loss 6400 Capital Replacement Totals (11,075)82,787 1,240,983 310,400 1,720,664 938,103 ($36,110) $51,534 ($50,514) ($708,618)($395,331) ($774,612) $ - $ - $270,263 $251,916 $270,263 $251,916 $ - $ - $661,218 $ - $661,218 $ - 135 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 142 - This page intentionally left blank - 136 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 143 GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund. 137 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 144 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET Statement 25 GENERAL FUND December 31, 2011 With Comparative Totals For December 31, 2010 2011 2010 Assets Cash and investments $13,982,347 $12,437,785 Accrued interest receivable 52,270 38,721 Due from other governments 142,534 140,618 Accounts receivable 27,752 19,353 Taxes receivable - unremitted 133,399 461,086 Taxes receivable - delinquent 327,905 469,313 Prepaid items 57,473 66,945 Inventory 13,719 13,719 Total assets $14,737,399 $13,647,540 Liabilities and Fund Balance Liabilities: Accounts payable $764,009 $423,519 Salaries payable 712,022 733,303 Due to other governments 28,927 34,150 Contracts payable 56,742 45,046 Deposits payable 717,430 553,058 Deferred revenue 1,020,047 827,929 Total liabilities 3,299,177 2,617,005 Fund balance: Nonspendable 71,192 80,664 Restricted 427,718 425,967 Assigned 139,483 124,503 Unassigned 10,799,829 10,399,401 Total fund balance 11,438,222 11,030,535 Total liabilities and fund balance $14,737,399 $13,647,540 138 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 145 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, 2011 2011 2010 Percent Increase (Decrease) Revenues: Property taxes $23,336,537 $22,667,190 3.0% Tax increments 7,222,976 6,649,563 8.6% Franchise taxes 1,894,714 1,497,178 26.6% License and permits 2,797,700 2,359,716 18.6% Intergovernmental 3,105,500 11,879,601 (73.9%) Charges for services 3,847,710 4,051,971 (5.0%) Fines and forfeits 281,047 401,610 (30.0%) Special assessments 985,912 1,550,110 (36.4%) Interest on investments 949,510 612,098 55.1% Miscellaneous 2,335,608 3,050,231 (23.4%) Total revenues 46,757,214 54,719,268 (14.6%) Per capita 1,033 1,209 Expenditures: Current: General government 6,415,318 6,219,751 3.1% Public safety 11,885,577 11,771,246 1.0% Public works 4,437,939 15,624,494 (71.6%) Public information 383,586 387,459 (1.0%) Clt d ti 6 546 054 6 234 938 50% Total Governmental Funds Culture and recreation 6,546,054 6,234,938 5.0% Housing and rehabilitation 790,918 4,144,378 (80.9%) Housing maintenance 79,786 241,170 (66.9%) Social economic development 6,426,013 4,720,638 36.1% Capital outlay: General government 52,930 222,381 0.0% Public safety 9,924,856 519,083 1,812.0% Public works 2,637,479 3,955,145 (33.3%) Public information - 92,086 (100.0%) Housing and rehabilitation 9,420 56,259 0.0% Culture and recreation 1,548,322 990,548 56.3% Social and economic development 122,002 470,581 (74.1%) Debt service: Principal 5,420,000 2,170,000 149.8% Interest 1,170,549 1,170,286 0.0% Bond issuance costs - 453,288 0.0% Fiscal agent fees 1,040 - 0.0% Total expenditures 57,851,789 59,443,731 (2.7%) Per capita 1,278 1,314 Total bonds payable 28,325,000 32,130,000 (11.8%) Per capita 626 710 General Fund balance December 31, 2011 11,438,222 11,030,535 3.7% Per capita 253 244 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. 139 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 146 - This page intentionally left blank - 140 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 147 III. STATISTICAL SECTION (UNAUDITED) 141 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 148 2003 2004 2005 Governmental activities Invested in capital assets, net of related debt $30,320,448 $38,042,067 $47,555,983 Restricted 4,118,859 3,928,407 10,841,736 Unrestricted 66,744,367 65,641,642 59,482,664 Total governmental activities net assets $101,183,674 $107,612,116 $117,880,383 Business-type activities Invested in capital assets, net of related debt $22,858,489 $23,516,232 $25,769,652 Unrestricted 14,045,023 11,741,791 9,119,032 Total business-type activities net assets $36,903,512 $35,258,023 $34,888,684 Total primary government Invested in capital assets, net of related debt $53,178,937 $61,558,299 $73,325,635 Restricted 4,118,859 3,928,407 10,841,736 Unrestricted 80,789,390 77,383,433 68,601,696 Total primary government $138,087,186 $142,870,139 $152,769,067 Note: Net assets are not available for years prior to 2003. CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET ASSETS BY COMPONENT LAST NINE FISCAL YEARS Fiscal Year 142 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 149 Table 1 2006 2007 2008 2009 2010 2011 $56,843,474 $74,883,912 $76,600,774 $89,252,994 $94,326,512 $99,835,484 9,340,767 13,098,282 - 20,075,976 21,692,426 17,695,996 60,462,334 46,155,656 65,908,328 40,508,755 40,581,189 43,929,086 $126,646,575 $134,137,850 $142,509,102 $149,837,725 $156,600,127 $161,460,566 $25,629,760 $25,644,428 $27,559,942 $23,977,469 $21,717,923 $22,347,266 7,514,603 7,499,935 6,414,768 6,903,776 8,433,915 8,524,086 $33,144,363 $33,144,363 $33,974,710 $30,881,245 $30,151,838 $30,871,352 $82,473,234 $100,528,340 $104,160,716 $113,230,463 $116,044,435 $122,182,750 9,340,767 13,098,282 - 20,075,976 21,692,426 17,695,996 67,976,937 53,655,591 72,323,096 47,412,531 49,015,104 52,453,172 $159,790,938 $167,282,213 $176,483,812 $180,718,970 $186,751,965 $192,331,918 Fiscal Year 143 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 150 2003 2004 2005 Expenses Governmental activities General government $7,777,663 $6,580,494 $6,802,845 Public safety 9,695,943 9,765,605 10,262,906 Public works 8,472,450 4,805,735 5,520,192 Public information 235,749 255,237 262,962 Culture and recreation 4,724,014 5,477,788 6,262,800 Housing and rehabilitation 327,960 285,019 397,834 Housing maintenance 127,941 229,861 161,558 Social and economic development 2,957,607 1,105,501 3,888,897 General services 7,976 1,596 7,626 Interest on long-term debt 1,725,302 1,784,022 1,478,427 Total governmental activities expenses 36,052,605 30,290,858 35,046,047 Business-type activities Water 2,267,570 2,655,285 2,607,123 Sewer 4,173,457 3,986,920 3,904,543 Solid waste - - - Refuse 2,535,119 1,996,615 2,019,204 Storm water 715,309 752,331 793,977 Wireless - - - Total business-type activities expenses 9,691,455 9,391,151 9,324,847 Total expenses $45,744,060 $39,682,009 $44,370,894 Program revenues Governmental activities Charges for services General government $695,405 $645,050 $639,679 Public safety 2,247,213 2,739,097 3,488,259 Public works - - - Public information Culture and recreation 1,621,911 2,223,977 2,317,222 Housing and rehabilitation - - - Housing maintenance 572,291 1,189,257 1,378,015 Social and economic development - - - Interest on long-term debt - - - Operating grants and contributions 4,569,505 2,499,857 1,283,407 Capital grants and contributions 850,114 696,152 2,412,375 Total governmental activities program revenue 10,556,439 9,993,390 11,518,957 Business-type activities Charges for services Water $3,165,974 $2,567,638 $2,363,709 Sewer 3,815,599 4,263,433 4,367,868 Solid waste - - - Refuse 1,740,323 2,021,725 1,857,808 Storm water 631,332 802,856 914,701 Wireless - - - Operating grants and contributions 95,606 - 119,165 Capital grants and contributions 220,244 - 1,236,740 Total business-type activities program revenue 9,669,078 9,655,652 10,859,991 Total program revenues $20,225,517 $19,649,042 $22,378,948 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET ASSETS LAST NINE FISCAL YEARS (accrual basis of accounting) Fiscal Year 144 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 151 Table 2 Page 1 of 2 2006 2007 2008 2009 2010 2011 $7,155,916 $8,251,341 $8,216,816 $8,167,355 $7,192,652 $7,247,716 11,695,841 10,721,803 11,867,403 12,138,185 12,256,272 12,535,793 6,895,260 5,979,789 6,904,217 6,915,541 19,446,758 7,513,833 231,124 404,074 425,829 457,872 435,050 803,885 6,399,633 6,916,001 7,352,406 7,456,215 7,792,614 7,882,789 728,433 1,079,211 1,615,010 1,544,175 4,150,595 794,935 373,393 121,118 199,757 128,099 241,345 79,786 9,784,543 5,910,149 5,494,634 6,321,623 4,861,518 6,171,527 22,484 6,830 2,653 7,662 - - 1,345,023 1,301,266 1,329,767 1,543,879 1,453,555 1,695,758 44,631,650 40,691,582 43,408,492 44,680,606 57,830,359 44,726,022 2,845,614 3,285,107 3,391,992 4,089,837 3,904,801 3,839,592 4,268,952 4,199,659 4,485,386 4,228,680 4,193,191 4,572,869 - - - - 2,116,949 2,319,099 2,029,302 2,019,595 2,135,677 2,125,540 - - 1,032,410 1,088,170 1,172,199 1,287,202 1,325,803 1,373,546 402,683 1,151,751 315,664 151,708 - - 10,578,961 11,744,282 11,500,918 11,882,967 11,540,744 12,105,106 $55,210,611 $52,435,864 $54,909,410 $56,563,573 $69,371,103 $56,831,128 $936,199 $978,058 $955,811 $888,246 $1,065,209 $1,059,527 3,049,369 2,977,475 4,282,699 2,958,383 2,898,634 2,917,525 432,932 1,483,824 380,452 2,292,287 601,890 315,163 200,000 1,886,153 2,409,625 2,121,505 2,083,015 1,959,556 2,111,348 456,088 527,536 507,163 562,930 8,833 62,191 - - - - - - 32,456 202,110 173,960 184,236 588,757 316,935 - - - 318,134 - - 7,703,241 3,908,485 3,581,092 2,664,563 1,735,926 2,065,312 6,290,881 2,113,560 2,822,683 2,131,755 14,908,522 1,878,697 20,787,319 14,600,673 14,825,365 14,083,549 23,767,327 10,926,698 $2,968,926 $3,461,301 $3,584,384 $4,294,962 $4,148,394 $4,475,068 4,584,802 4,820,732 4,506,339 5,153,171 5,277,473 5,768,266 - - - - 2,719,376 2,894,726 2,124,203 2,395,469 2,348,133 2,458,555 - - 1,169,915 1,473,746 1,529,180 1,699,557 1,829,792 1,904,587 41,057 68,959 51,322 16,140 - - 263,181 208,814 966,053 167,604 103,342 103,166 209,277 - 1,040,384 - 2,890 - 11,361,361 12,429,021 14,025,795 13,789,989 14,081,267 15,145,813 $32,148,680 $27,029,694 $28,851,160 $27,873,538 $37,848,594 $26,072,511 Fiscal Year 145 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 152 2003 2004 2005 Net (expenses) revenues Governmental activities ($25,496,166) ($20,297,468) ($23,527,090) Business-type activities (22,377)264,501 1,535,144 Total primary government ($25,518,543) ($20,032,967) ($21,991,946) General Revenues and Other Changes in Net Assets Governmental activities Taxes Property taxes $17,959,983 $20,259,269 $21,965,197 Tax increment Franchise taxes 274,072 1,283,654 1,431,779 State grants and contributions not restricted to specific programs 1,634,552 1,701,769 1,520,187 Unrestricted investment earnings 1,308,108 942,743 1,484,873 Gain on sale of capital assets 68,299 101,593 182,373 Miscellaneous 224,142 470,409 672,032 Transfers 1,036,995 1,966,473 2,095,521 Total governmental activities expenses 22,506,151 26,725,910 29,351,962 Business-type activities Unrestricted investment earnings 176,493 167,840 184,950 Miscellaneous 309 (111,357)3,949 Gain on sale of capital assets 44 - 2,139 Transfers (1,036,995) (1,966,473) (2,095,521) Total business-type activities expenses (860,149) (1,909,990) (1,904,483) Total primary government $21,646,002 $24,815,920 $27,447,479 Change in Net Assets Governmental activities ($2,990,015) $6,428,442 $5,824,872 Business-type activities (882,526) (1,645,489)(369,339) Prior period adjustment - - - Total primary government ($3,872,541) $4,782,953 $5,455,533 Note: Changes in net assets are not available for years prior to 2003. Fiscal Year CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET ASSETS LAST NINE FISCAL YEARS (accrual basis of accounting) 146 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 153 Table 2 Page 2 of 2 2006 2007 2008 2009 2010 2011 ($23,844,331) ($26,090,909) ($28,583,127) ($30,597,057) ($34,063,032) ($33,799,324) 755,400 684,739 2,524,877 1,907,022 2,540,523 3,040,707 ($23,088,931) ($25,406,170) ($26,058,250) ($28,690,035) ($31,522,509) ($30,758,617) $23,538,989 $26,163,519 $28,523,119 $29,512,631 $29,642,090 $23,527,322 $7,222,976 1,358,902 1,440,034 1,507,994 1,503,075 1,497,178 1,894,714 932,634 825,327 519,850 153,108 151,624 156,325 2,881,818 4,139,689 2,133,858 1,452,176 629,094 1,048,395 128,344 378,075 1,842,601 91,149 34,453 51,686 474,054 341,335 470,230 11,229 950,231 2,300,478 1,923,760 1,996,291 1,956,727 5,202,312 3,358,921 2,457,867 31,238,501 35,284,270 36,954,379 37,925,680 36,263,591 38,659,763 254,966 466,923 243,724 201,825 88,991 136,674 13,702 - 18,473 - - - - - - - - - (1,923,760) (1,996,291) (1,956,727) (5,202,312) (3,358,921) (2,457,867) (1,655,092) (1,529,368) (1,694,530) (5,000,487) (3,269,930) (2,321,193) $29,583,409 $33,754,902 $35,259,849 $32,925,193 $32,993,661 $36,338,570 $7,394,170 $9,193,361 $8,371,252 $7,328,623 $2,200,559 $4,860,439 (899,692)(844,629)830,347 (3,093,465)(729,407)719,514 (474,033)143,969 - - - - $6,020,445 $8,492,701 $9,201,599 $4,235,158 $1,471,152 $5,579,953 Fiscal Year 147 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 154 - This page intentionally left blank - 148 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 155 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST NINE FISCAL YEARS Fiscal Property Franchise Year Tax Tax Total 2003 $17,959,983 $274,072 $18,234,055 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 29,512,631 1,503,075 31,015,706 2010 29,642,090 1,497,178 31,139,268 2011 30,750,298 1,894,714 32,645,012 Note: Tax revenues by source are not available for years prior to 2003. 149 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 156 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2002 2003 2004 2005 General fund Reserved $18,235 $34,889 $42,267 $118,002 Unreserved 7,519,959 6,799,827 8,153,025 8,622,091 Nonspendable - - - - Restricted - - - - Assigned - - - - Unassigned - - - - Total General fund $7,538,194 $6,834,716 $8,195,292 $8,740,093 All other governmental funds Reserved $6,799,583 $8,910,066 $9,548,264 $19,338,220 Unreserved, reported in: Special revenue funds 13,386,315 9,314,599 8,333,265 7,707,696 Capital projects funds 38,270,165 33,405,404 33,435,630 30,396,836 Other funds - 6,161,280 5,430,918 2,257,068 Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $58,456,063 $57,791,349 $56,748,077 $59,699,820 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 150 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 157 Table 4 2006 2007 2008 2009 2010 2011 $104,774 $13,719 $29,368 $572,206 $ - $ - 9,847,341 10,100,187 11,697,232 7,326,638 - - - - - - 80,664 71,192 - - - - 425,967 427,718 - - - - 124,503 139,483 - - - - 10,399,401 10,799,829 $9,952,115 $10,113,906 $11,726,600 $7,898,844 $11,030,535 $11,438,222 $9,276,305 $10,229,125 $10,610,175 $7,540,696 $ - $ - 10,012,784 9,450,210 7,134,284 7,568,944 - - 38,126,004 38,889,030 43,134,211 40,680,331 - - - - - - - - - - - - 11,570,382 11,391,114 - - - - 32,296,848 18,298,167 - - - - 466,792 511,610 - - - - 25,151,409 26,518,495 - - - - (7,872,234) (5,042,828) $57,415,093 $58,568,365 $60,878,670 $55,789,971 $61,613,197 $51,676,558 Fiscal Year 151 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 158 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) 2002 2003 2004 2005 Revenues Taxes $17,546,588 $17,963,805 $20,146,562 $21,909,256 Tax increments - - - - Franchise taxes Licenses and permits 2,140,905 2,027,353 2,569,868 2,932,988 Intergovernmental 7,953,559 5,495,380 3,608,768 5,410,252 Charges for services 2,457,615 2,072,126 4,935,172 4,197,987 Fines and forfeits 277,812 294,408 251,256 286,003 Special assessments 574,314 553,086 920,680 827,361 Investment earnings 2,181,428 1,189,713 854,636 1,323,843 Miscellaneous 5,715,376 2,277,480 2,431,999 2,397,275 Total revenues 38,847,597 31,873,351 35,718,941 39,284,965 Expenditures General government 5,162,084 5,267,243 5,298,509 5,662,931 Public safety 9,086,240 9,486,448 9,628,174 11,221,408 Public works 3,485,329 3,750,500 4,000,282 3,772,650 Public information 215,623 229,675 249,388 259,461 Culture and recreation 4,349,894 4,487,543 4,786,730 5,271,726 Housing and rehabilitation 527,330 327,960 285,019 397,834 Housing maintenance 313,320 127,941 229,861 161,558 Social and economic development 2,671,453 899,677 791,110 1,405,434 General services 2,102 7,976 1,596 7,626 Debt service: Principal 9,320,000 2,990,000 3,155,000 3,680,000 Interest 2,027,384 1,715,827 1,693,689 1,626,517 Other charges 174,967 33,076 - 59,589 Capital outlay 10,367,806 8,333,251 7,382,608 11,206,131 Total expenditures 47,703,532 37,657,117 37,501,966 44,732,865 Excess (deficiency) of revenues over (under) expenditures (8,855,935) (5,783,766) (1,783,025) (5,447,900) Other financing sources (uses) Transfers in 15,620,099 5,778,074 10,608,768 9,650,253 Transfers out (8,478,100) (5,507,496) (8,757,973) (8,716,751) Principal paid on refunded bonds - - (7,295,000) - Refunding bonds issued - - - 2,370,000 Bonds issued 6,140,866 4,145,000 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 Total other financing sources (uses)13,282,865 4,415,578 2,100,329 8,721,049 Net change in fund balances $4,426,930 ($1,368,188) $317,304 $3,273,149 Debt service as a percentage of noncapital expenditures 30.39% 16.05%16.10%15.83% Fiscal Year 152 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 159 Table 5 2006 2007 2008 2009 2010 2011 $19,416,738 $20,951,991 $21,563,302 $21,700,329 $22,667,190 $23,336,537 5,390,257 6,597,092 8,371,424 7,846,204 6,649,563 7,222,976 1,503,075 1,497,178 1,894,714 2,934,270 2,946,749 4,072,753 2,786,032 2,359,716 2,797,700 12,943,457 3,737,619 2,424,119 3,867,795 11,879,601 3,105,500 2,394,509 276,693 324,512 4,228,179 4,051,971 3,897,710 322,558 4,482,834 3,894,839 332,694 401,610 281,047 843,030 840,965 703,484 800,054 1,550,110 985,912 2,717,490 3,851,542 1,990,854 1,358,170 612,098 949,510 2,648,354 3,038,836 3,591,212 2,615,062 3,050,231 2,285,608 49,610,663 46,724,321 46,936,499 47,037,594 54,719,268 46,757,214 5,985,314 6,642,231 6,642,295 6,472,022 6,219,751 6,415,318 11,060,618 10,851,256 11,744,656 11,949,612 11,771,246 11,885,577 4,934,433 4,089,223 4,671,631 4,637,289 15,624,494 4,437,939 227,106 393,863 415,609 445,146 387,459 383,586 6,095,959 7,274,375 6,213,945 6,027,059 6,234,938 6,546,054 739,391 688,062 1,621,099 1,550,264 4,144,378 790,918 373,393 121,118 199,757 128,099 241,170 79,786 9,124,251 5,822,842 5,162,698 6,241,123 4,720,638 6,426,013 22,484 6,830 2,653 7,662 - - 6,360,000 4,065,000 4,485,000 4,709,000 2,170,000 5,420,000 1,450,460 1,304,565 1,365,484 1,322,477 1,170,286 1,170,549 - - - - 453,288 1,040 4,567,251 5,804,342 9,998,748 10,314,002 6,306,083 14,295,009 50,940,660 47,063,707 52,523,575 53,803,755 59,443,731 57,851,789 (1,329,997)(339,386) (5,587,076) (6,766,161) (4,724,463) (11,094,575) 6,432,713 8,383,989 11,129,934 9,939,299 11,809,353 7,086,529 (5,480,804) (7,008,202) (9,233,136) (10,579,081) (14,974,391) (5,520,906) - - - - - - - - - - 3,615,000 - - - 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) - (220,584)278,662 2,123,277 - 27,412 - 731,325 1,654,449 9,510,075 (4,874,005) 15,051,166 1,565,623 ($598,672) $1,315,063 $3,922,999 ($11,640,166) $10,326,703 ($9,528,952) 16.84%13.01%13.76%13.87%6.29%12.86% Fiscal Year 153 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 160 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 2002 2003 2004 2005 Population 44,270 44,302 44,896 44,511 Real Property Total assessed/tax capacity value $44,639,956 $46,957,116 $51,772,756 $56,737,869 Less tax increment districts -(3,792,061) (4,313,399) (4,665,583) (5,211,867) Area-wide allocation (net)(1,477,254) (1,349,096) (703,750) (1,153,662) Net assessed/tax capacity value $40,847,895 $42,643,717 $47,107,173 $50,372,340 Estimated market value $3,805,624,900 $4,121,540,000 $4,828,585,300 $4,841,195,800 Personal Property Assessed/tax capacity value $420,338 $436,947 $456,914 $464,571 Fiscal Year Estimated market value $21,270,900 $22,114,100 $23,123,200 $23,527,400 Total Real and Personal Property Assessed/tax capacity value $39,790,979 $41,731,568 $46,860,340 $50,836,911 Estimated market value $3,826,895,800 $4,143,654,100 $4,851,708,500 $4,864,723,200 Tax Capacity Rate 35.9% 34.8% 34.8% 35.2% 154 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 161 Table 6 2006 2007 2008 2009 2010 2011 44,422 43,145 47,198 47,221 45,250 44,665 $62,912,413 $68,025,921 $68,006,453 $69,704,858 $68,386,268 $65,611,006 (6,335,246) (7,644,566)(7,639,464) (8,276,993) (6,976,791) (6,379,980) (1,186,353) (1,498,263)(1,498,263) (1,635,724) (1,231,482) (2,775,483) $55,390,814 $58,883,092 $58,868,726 $59,792,141 $60,177,995 $56,455,543 $5,232,595,500 $5,553,715,600 $5,552,520,000 $5,633,028,200 $5,550,563,700 $5,302,557,500 $489,063 $458,627 $458,627 $434,825 $428,760 $478,864 Fiscal Year $24,807,500 $23,263,700 $23,263,700 $22,006,100 $21,712,100 $24,363,800 $55,879,877 $59,341,719 $59,327,353 $60,226,966 $60,606,755 $56,934,407 $5,257,403,000 $5,576,979,300 $5,575,783,700 $5,655,034,300 $5,572,275,800 $5,326,921,300 32.9%32.9%34.8%36.6%37.1%38.7% 155 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 162 STATISTICAL SECTION (UNAUDITED)Table 7 2005 2006 2007 2008 2009 2010 2011 Operating Rate 35.571 34.164 32.344 32.504 34.402 34.869 39.689 Debt Service Rate 1.810 2.180 2.394 2.255 2.265 2.247 1.77 Total City of St. Louis Park 37.381 36.344 34.738 34.759 36.667 37.116 41.459 County Operating Rate 44.172 41.016 39.11 38.571 40.413 42.640 45.84 School District Operating Rate 9.481 8.665 11.704 8.691 9.08 9.295 12.917 Debt Service Rate 13.281 11.912 11.781 10.889 11.257 11.803 13.539 Other Taxing Districts St. Louis Park HRA Levy 1.298 1.259 1.336 1.344 1.759 1.718 1.817 Metro Mosquito Control 0.564 0.509 0.499 0.486 0.489 0.461 0.525 Metro Council 1.132 0.873 0.877 0.812 0.817 0.793 0.885 City of St. Louis Park Overlapping Rates CITY OF ST. LOUIS PARK, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPING GOVERNMENTS LAST SEVEN FISCAL YEARS Year Metro Transit Debt 1.608 1.542 1.295 1.264 1.273 1.366 1.539 Hennepin County HRA - - - - - 0.241 0.397 Hennepin Parks 2.667 2.830 3.068 3.137 3.334 3.499 3.765 Park Museum 0.775 0.685 0.700 0.719 0.771 0.778 0.815 HC Regional Railroad Authority 0.636 0.559 0.871 0.979 0.470 1.000 1.246 Referendum Market Value Based Rate - - - - - 0.152 0.148 Watershed 1.276 1.072 1.121 1.404 1.489 1.511 1.606 Total 114.271 107.266 107.100 103.055 107.819 112.373 126.498 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. 156 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 163 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 Duke-Weeks Realty (formerly MEPC American Properties) Interchange Investors (formerly WHIOP Real Estate L $80,608,500 1 1.45 $40,557,000 2 1.06% BRE/COH MN, LLC 76,940,000 2 1.38 Park Nicollet 63,900,000 3 1.15 Parkdale Property LLC 54,803,900 4 0.98 Excelsior & Grand LLC 52,111,800 5 0.94 33,026,900 5 0.86% AEW VIF II Acquisition LLC 43,301,000 6 0.78 Parkshore, LLC 38,615,000 7 0.69 17,000,000 6 0.44% Target (formerly Dayton Hudson)26,183,000 8 0.47 18,300,000 8 0.48% WTC No 459 Corp 24,979,000 9 0.45 Park Glen 24,070,000 10 0.43 12,990,000 9 0.34% Xcel Energy (formerly Northern States Power)25,520,000 8 0.46 Park Place OPCO LLC 14,244,500 10 0.26 83,000,000 1 2.17% Deloitte& Touche LLP - - - 37,590,400 3 0.98% Gator Investments - - - 37,550,000 4 0.98% Park Boulevard Housing LLP - - - 14,458,500 7 0.38% P k N i l B ildi C 12 115 000 10 0 32% Taxpayer 2011 2002 Park National Building Corp - - - 12,115,000 10 0.32% Total $525,276,700 9.43 $306,587,800 8.01% Total taxable assessed value $5,572,275,800 3,826,895,800 157 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 164 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 2002 $14,271,459 $14,127,786 98.99% $14,271,459 100.00% 2003 14,536,228 13,844,355 95.24% 14,536,228 100.00% 2004 16,323,715 16,131,737 98.82% 16,299,691 99.85% 2005 17,901,681 17,686,884 98.80% 17,880,791 99.88% 2006 18,374,196 18,066,050 98.32% 18,358,133 99.91% 2007 19,546,981 19,311,423 98.79% 19,532,175 99.92% 2008 20,637,216 20,366,309 98.68% 20,621,209 99.92% 2009 22,070,208 21,765,646 98.62% 21,986,694 99.62% 2010 22,465,393 22,434,579 99.86% 22,434,579 99.86% 2011 22,695,928 22,460,013 98.96 22,460,013 99.86% Collected Within the Fiscal Year of the Levy Total Collections to Date 158 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 165 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST SEVEN 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 2.56% 954.66 2011 21,420,000 6,905,000 26,220 10,555,000 - 38,906,220 2.32% 871.07 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 and Economic Statistics on page 192 for personal income and population data. Governmental Activities Business Type Activities 159 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 166 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST SEVEN 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% $245.43 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 0.48% 499.13 2011 21,420,000 6,311,862 15,108,138 0.28% 338.25 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 154 for property value data. (2) Population data can be found in the Schedule of Demographic and Economic Statistics on page 165. 160 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 167 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2011 Share of Debt Percentage Overlapping Outstanding (1) Applicable (2) Debt Overlapping Debt: Hennepin County $723,889,101 3.95%$28,593,619 St. Louis Park Independent School District 44,284,075 99.57% 44,093,653 Hopkins Independent School District 181,415,841 3.06% 5,551,325 Edina Independent School District 69,167,442 0.06% 41,500 Hennepin County Suburban Park District 64,252,898 5.30% 3,405,404 Hennepin Regional RR Authority 40,128,161 3.95% 1,585,063 Metropolitan Council 142,956,525 1.71% 2,444,557 Subtotal of Overlapping Debt: 1,266,094,043 85,715,122 Direct Debt: City of St. Louis Park 21,420,000 100.00%21,420,000 Total of Direct and Overlapping Debt:$1,287,514,043 $107,135,122 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 161 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 168 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST SIX FISCAL YEARS 2006 2007 Debt Limit $105,148,060 $111,539,586 Total Net Debt Applicable to Limit 3,497,669 3,127,988 Legal Debt Margin $101,650,391 $108,411,598 Total Net Debt Applicable to the Limit as a percentage of Debt Limit 3.33% 2.80% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value $5,257,403,000 $5,576,979,300 Debt Limit (3% of taxable market value)$105,148,060 $111,539,586 Debt applicable to limit: Total Bonded Debt 32,135,000 31,540,000 Less: Amount Set Aside for Repayment of G.O. Bonds (207,331)(452,012) G.O. Revenue Bonds (2,365,000)(5,835,000) Fiscal Year G.O. Revenue Bonds (2,365,000)(5,835,000) G.O. Improvement Bonds (8,940,000)(8,225,000) G.O. Tax Increment Bonds (17,125,000)(13,900,000) Total Net Debt Applicable to Limit:3,497,669 3,127,988 Legal Debt Margin:$101,650,391 $108,411,598 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. 162 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 169 Table 13 2008 2009 2010 2011 $167,273,511 $167,168,274 $167,168,274 $159,807,639 2,747,414 2,880,000 15,535,000 15,150,000 $164,526,097 $164,288,274 $151,633,274 $144,657,639 1.64%1.72%9.29%9.48% $5,575,783,700 $5,572,275,800 $5,572,275,800 $5,326,921,300 $167,273,511 $167,168,274 $167,168,274 $159,807,639 36,280,000 27,180,000 45,079,924 38,880,000 (487,586) (9,570,000)(9,185,000)(11,334,924)(10,555,000) Fiscal Year (9,570,000)(9,185,000)(11,334,924)(10,555,000) (7,480,000)(6,710,000)(10,800,000)(6,270,000) (15,995,000)(8,405,000)(7,410,000)(6,905,000) 2,747,414 2,880,000 15,535,000 15,150,000 $164,526,097 $164,288,274 $151,633,274 $144,657,639 163 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 170 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 14 PLEDGED REVENUE BOND COVERAGE LAST SIX 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% 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 164 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 171 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) 2002 44,270 $1,320,977 $29,839 35.7 4,141 3.6% 2003 44,302 1,361,585 30,734 37.1 4,231 4.0% 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% Source: (1) Federal Census Bureau data (2) St. Louis Park School District (3) Minnesota Department of Employment and Economic Development 165 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 172 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 5,825 1 21.7 % 5,402 1 18.9 % Japs-Olson Company 700 2 2.6 700 6 2.5 St. Louis Park Public Schools 671 3 2.5 739 5 2.6 Knollwood Mall 600 4 2.2 910 3 3.2 Sholom Home West 575 5 2.1 - - - Super Target 405 6 1.5 - - - Miracle Mile Shopping Center 350 7 1.3 350 7 1.2 St. Louis Park, City of 313 8 1.2 256 8 0.9 Lifetime Fitness 300 9 1.1 - - - Profit Stars 300 10 1.1 - - - MoneyGram International (formerly Travelers Express)- - - 850 4 3.0 Byerly's - - - 250 9 0.9 Allied Interstate - - - 1,450 2 5.1 Doubletree Park Place Hotel - - - 250 10 0.9 Nestle Nutrition (formerly Novartis Nutrition)- - - - - - Total 10,039 37.3 % 11,157 39.1 % Total City employment 26,897 28,525 Employer Employment Percentage of Total City Percentage of Total City Employment 166 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 173 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 17 FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST SEVEN FISCAL YEARS 2005 2006 2007 2008 2009 2010 2011 Function General government 115.0 119.1 123.0 122.5 114.5 105.5 95.4 Public safety Police Officers 51.0 51.0 51.0 51.0 51.0 51.0 51.0 Civilians 18.5 19.5 19.5 18.5 17.0 20.0 23.0 Fire Firefighters and officers 25.0 25.0 25.0 25.0 25.0 25.0 24.0 Public Works 33.0 32.7 32.0 32.0 32.0 32.0 32.0 Water 7.8 7.8 10.3 11.4 11.4 9.9 11.2 Sewer 6.7 5.7 3.7 2.7 2.7 3.6 4.9 Refuse 0.7 0.7 0.7 1.8 1.8 1.8 3.3 Storm Water 2.0 2.0 2.6 2.6 2.6 3.3 4.9 Total Employees 259.7 263.5 267.8 267.5 258.0 252.0 249.7 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. 167 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 174 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 18 OPERATING INDICATORS BY FUNCTION LAST SEVEN FISCAL YEARS 2005 2006 2007 2008 2009 2010 2011 Police Medical calls 2,660 2,876 2,881 3,153 3,110 3,188 3,101 Traffic stops 1,959 2,510 1,981 2,724 2,462 4,236 5,362 Other 23,508 25,394 24,996 24,412 22,562 21,355 21,742 Fire Inspections/Medical/All other calls 3,970 4,109 4,141 4,357 4,429 3,893 3,078 Fire calls - residential 38 67 45 52 82 50 69 Fire calls - structural 11 16 16 9 14 57 84 Fire calls - other 60 58 71 46 68 37 53 Cable TV Hours of new programming 121 124 94 294 250 456 535 Inspections Permits 8,092 8,527 8,616 13,687 8,895 8,397 9,220 Inspections 18,316 18,916 17,797 24,022 27,332 20,204 22,818 Culture and recreation Aquatic park attendance 88,491 75,380 80,347 76,218 67,617 69,825 67,422 Hours of ice time 6,546 6,508 6,574 6,787 6,354 6,493 4,687 Water Gallons of water production (billions) 2.0 2.2 2.3 2.4 2.4 2.1 2.1 Average watermain breaks per year 30 30 30 30 30 30 30 Public Works Snowplowing hours 1,236 1,165 1,556 1,672 2,454 3,216 2,543 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year 168 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 175 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 19 CAPITAL ASSET STATISTICS BY FUNCTION LAST SEVEN FISCAL YEARS 2005 2006 2007 2008 2009 2010 2011 Function Public safety Police Stations 1111111 Patrol units 22 25 26 26 26 26 26 Fire Stations 2222222 Vehicles 10 13 13 13 13 13 13 Fire hydrants 1,699 1,699 1,699 1,699 1,699 1,699 1,699 Culture and recreation Parks 51 51 51 53 53 53 57 Trails 10 10 10 10 10 10 10 Streets Lane miles of streets 290 290 290 290 310 311 311 Miles of streets 117 117 117 117 155 156 155 Water Fiscal Year Water Wells 11 11 11 11 11 11 11 Water treatment plants 6666666 Miles of watermain 148 148 148 148 148 149 160 Sanitary Sewer Lift stations 23 23 23 23 23 23 23 Miles of sewermain 138 138 138 138 138 139 147 Storm Sewer Ponds and lakes 26 26 26 26 26 52 52 Catch basins 2,943 2,943 2,943 2,943 3,154 3,731 3,731 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. 169 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 176 - This page intentionally left blank - 170 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 177 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 178 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 179 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 180 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 181 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 182 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 183 Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and Review Page 184 Click to edit Master title styleCityofStLouisParkMinnesotaCity of St. Louis Park, Minnesota2011AuditReview2011 Audit ReviewJune 18, 2012David J. Mol, CPACopyright ©2012 HLB Tautges Redpath, Ltd.Copyright ©2012 HLB Tautges Redpath, Ltd.1643714Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 185 Reports Issued by Auditor•Opinion on the Fair Presentation of the Financial Statements•Report on Internal Controls•Report on Compliance with Minnesota legal Compliance Audit GuideforPoliticalSubdivisionsGuide for Political Subdivisions•Communication to Those Charged with GovernanceCopyright ©2012 HLB Tautges Redpath, Ltd.2Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 186 Opinion on Financial Statements•What did we do?Auditedthefinancialstatementswhicharethe responsibilityof–Audited the financial statements, which are the responsibility of management.•How did we do it?–GAASandGAGASGAAS and GAGAS–Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.•What is the result?–The financial statements present fairly, in all material respects, the financial position of the City in accordance with accounting standards. In other words, a “clean opinion”.Copyright ©2012 HLB Tautges Redpath, Ltd.3Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 187 GFOA Award for Excellence in Financial ReportingReportingCopyright ©2012 HLB Tautges Redpath, Ltd.4Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 188 Report on Internal Controls•What did we do?Wegainedanunderstandingofinternalcontrolsinplaceandtheir–We gained an understanding of internal controls in place and their effectiveness in order to design our audit procedures for expressing an opinion on the financial statements.•How did we do it?–Obtain understanding of controls on each major class of transaction and account balance.–Perform tests of controls to determine adherence to controls in place andeffectivenessand effectiveness.•What is the result?–One items noted•Auditadjustmentrelatedtorevenuerecognition•Audit adjustment related to revenue recognitionCopyright ©2012 HLB Tautges Redpath, Ltd.5Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 189 Report on Compliance with Minnesota LegalComplianceAuditGuide•What did we do?–Followed the audit guide published by the Office of the State Auditor. Thidi f iLegal Compliance Audit GuideThe guide consists of seven sections:•Depositories of public funds and investments•Conflicts of interest•PublicIndebtedness•Public Indebtedness•Contracting bid laws•Claims and disbursements•MiscellaneousprovisionsMiscellaneous provisions•Tax increment•How did we do it?–Selectsampleoftransactionstotestforcompliance withstatutorySelect sample of transactions to test for compliance with statutory provisions.•What is the result?–No findings of noncompliance.Copyright ©2012 HLB Tautges Redpath, Ltd.g p6Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 190 Communication to Those Charged With Governance•Accounting policies used and/or changed by the City.NochangesGovernance–No changes•Accounting estimates in the financial statements.–OPEB obligation•Financialstatementmisstatementsidentifiedduringtheaudit•Financial statement misstatements identified during the audit.–Two immaterial uncorrected misstatements–One material corrected adjustment•Nodisagreementswithmanagement•No disagreements with management.•No difficulties encountered in performing the audit.Copyright ©2012 HLB Tautges Redpath, Ltd.7Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 191 2011 Financial Summary•See separate handoutCopyright ©2012 HLB Tautges Redpath, Ltd.8Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 192 Constraints on Fund Balance(External) (Internal) (Internal)Fund Nonspendable Restricted Committed Assigned Unassigned TotalpggGeneral fund 71,192 427,718 ‐ 139,483 10,799,829 11,438,222 Parks and Recreation 306,058 ‐ ‐ 713,201 ‐ 1,019,259 Housing Rehab 2,768,176 ‐ ‐ ‐ (1,119,658) 1,648,518 Debtservicefunds‐1 764 911‐‐‐1 764 911Debt service funds‐ 1,764,911 ‐ ‐ ‐ 1,764,911 PIR 159,244 ‐ ‐ 3,935,459 ‐ 4,094,703 Street capital projects‐ ‐ ‐ ‐ (839,815) (839,815) Development EDA7,747,605 ‐ ‐ 16,219,647 ‐ 23,967,252 Redevelopment District‐ 8,857,255 ‐ ‐ (3,059,684) 5,797,571 CblTl ii668 349511 610401 5321 581 491Cable Television‐ 668,349 511,610 401,532 ‐ 1,581,491 Community Development 410,031 ‐ ‐ ‐ (23,671) 386,360 Special Service Districts‐ ‐ ‐ 261,980 ‐ 261,980 Fire Station Bonds‐ 2,057,900 ‐ 51,893 ‐ 2,109,793 Park Improvement‐ ‐ ‐ 2,597,617 ‐ 2,597,617 Pavement Mgmt‐ ‐ ‐ 2,337,166 ‐ 2,337,166 Police and Fire Pensions‐ 4,949,752 ‐ ‐ ‐ 4,949,752 Total11,462,306 18,725,885 511,610 26,657,978 5,757,001 63,114,780 Copyright ©2012 HLB Tautges Redpath, Ltd.9Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 193 General Fund Working Capital Needs$14,000,000 GeneralFundMonthlyCashBalances$10,000,000 $12,000,000 General Fund Monthly Cash Balances$6,000,000 $8,000,000 $2,000,000 $4,000,000 $‐Copyright ©2012 HLB Tautges Redpath, Ltd.10Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 194 History of General Fund Balance$12,000,000 History of General Fund Balance$8,000,000 $10,000,000 $4,000,000 $6,000,000 $ ‐$2,000,000 2001200220032004200520062007200820092010201120012002200320042005200620072008200920102011Targeted fund balance is 35% ‐50% of subsequent years budgeted expenditures. TheUnassigned fund balance at December 31, 2011 was 46% of subsequent years budgeted ditCopyright ©2012 HLB Tautges Redpath, Ltd.11expenditures.Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 195 Debt Service FundsFundDebt Balance at Payable at Source ofBond Issue 12/31/11 12/31/11 RepaymentTax Increment Bonds:Tax Increment Refunding Bonds, Series 2004A$ ‐ $1,415,000 Tax increment (Trunk Highway 7)Tax Increment Bonds , Series 2008B ‐ 5,490,000 Tax increment (West End)General Obligation Bonds:G.O. Bonds, Series 2000A (Acq. and renov. of multi‐family housing developmen121,000 ‐ Paid off in 2011 ($3,770,000)G.O. Bonds, Series 1999A 58,000 ‐ Paid off in 2011 ($310,000)G.O. Bonds, Series 2005A (Aquatic Park Expansion) 585,000 2,125,000 Property taxes (approx. $500K annually)G.O. Bonds, Series 2010A (Sunset Ridge) 83,000 3,105,000 Housing Improvement Fee$G.O. Refunding Bonds, Series 2010B (Refunded the 2003 bonds) 579,000 1,395,000 Property taxes (approx. $500K annually)G.O. Refunding Bonds, Series 2010C ( Refunds 2000A Louisiana Court Project) 75,000 1,770,000 Loan payments from DeveloperG.O. Bonds, Series 2010D (Fire Station) 264,000 13,025,000 Property taxes and federal rebateTotal $1,765,000 $28,325,000Copyright ©2012 HLB Tautges Redpath, Ltd.12Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 196 Water Utility$9 000 000$10,000,000 Water Operating Revenue & Expense$7,000,000 $8,000,000 $9,000,000 $3.9M transferred to Capital Replacement Internal Service Fund$4,000,000 $5,000,000 $6,000,000 Transfer OutDepreciationInterestAll Other ExpensesPersonal ServicesOperating Revenue$2,000,000 $3,000,000 $, ,Operating Revenue$0 $1,000,000 2007 2008 2009 2010 2011Copyright ©2012 HLB Tautges Redpath, Ltd.13Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 197 Sewer Utility$7,000,000 Sewer OperatingRevenue & Expense$5,000,000 $6,000,000 Revenue & Expense$3,000,000 $4,000,000 Transfer OutDepreciationPersonal ServicesAll Other ExpensesMCESOperating Revenue$1,000,000 $2,000,000 pg$0 ,,2007 2008 2009 2010 2011Copyright ©2012 HLB Tautges Redpath, Ltd.14Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 198 Solid Waste$4,000,000 Solid Waste$3,000,000 $3,500,000 Solid Waste$1M transferred to CRF for MSC$2,000,000 $2,500,000 Transfer OutOperating Expenditures$1,000,000 $1,500,000 $0 $500,000 2007 2008 2009 2010 2011Copyright ©2012 HLB Tautges Redpath, Ltd.15Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 199 Tax Levy and Tax Rates50History of Tax levy and Tax Rates35404550202530510152005 2006 2007 2008 2009 2010 2011 2012Tax Rate37.381 36.344 34.738 34.759 36.667 37.116 41.459 45.672Tax levy$17.902 $18.374 $19.478 $20.620 $21.815 $22.465 $23.363 $23.763 0Copyright ©2012 HLB Tautges Redpath, Ltd.16Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 200 Other Financial Items•St. Louis Park is a net contributor to the fiscal disparities pool.Taxcapacitycontributedtothepool$8 174 012–Tax capacity contributed to the pool$8,174,012–Tax capacity distributed from the pool $4,953,131–Net contribution$3,220,881–Net contribution is 5.1% of city’s tax capacity•State aid unallotments.–The unallotment for Market Value Homestead Credit was $639,000 for 2009 and $668,000 for 2010 and $755,000 for 2011.–CityhasnotreceivedLGAsince2003City has not received LGA since 2003.Copyright ©2012 HLB Tautges Redpath, Ltd.17Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 201 City of St. Louis Park, MinnesotaSummary Financial ActivityFor the Year Ended December 31, 2011ab cdefghijRevenue Expenditures Interfund Increase in Fund Balance/ CashCAFR and Otherand OtherTransfers Fund Balance/ Net Assets BalanceFund page Sources Uses (Net) Net Assets 12/31/11 12/31/11 Comments1General36 $21,126,000 $22,372,000 $1,654,000 $408,000 $11,438,000 $13,982,000$850K transferred to Benefits Administration Fund2Special Revenue:3 Parks and Recreation 36 6,337,000 6,340,000 68,000 65,000 1,019,000 729,0004 Housing Rehabilitation 36 1,393,000 894,000 57,000 556,000 1,649,000 483,000 $500K transferred from Park Center TIF5 Cable Television 103 821,000 384,000 (174,000) 263,000 1,581,000 1,440,000 $174K transferred to General Fund6 Community Development 103 94,000 80,000 (20,000) (6,000) 386,000 - $410K in Loans receivable at 12/31/117 Special Service Districts 103 225,000 230,000 - (5,000) 262,000 254,0008Debt Service:9 Hoigaard' 2010 A & B TIF 115 - 382,000 216,000 (166,000) - - $216K transferred from Elmwood TIF10 2010A G.O. Bond 113 - 172,000 255,000 83,000 83,000 83,000 $255K transferred from Housing Rehabilitation fund11 2010B G.O. Bond 113 502,000 492,000 - 10,000 10,000 10,00012 2010C G.O. Bond 114 126,000 51,000 - 75,000 75,000 75,00013 2010D G.O. Fire Station Bond 113 199,000 323,000 - (124,000) 264,000 183,00014 2010 G. O. Bond Reserve 114 - - - - - 37,00015 2009A G. O. Tax Increment Refunding 115 - 511,000 511,000 - - - Received transfer from Trunk Highway 7 TIF fund. Bond paid-off in 2011.16 2008B G. O. Tax Increment Bond 115 - 229,000 104,000 (125,000) - - $104K transferred from West End TIF17 2005A G. O. Bond 115 499,000 470,000 - 29,000 585,000 584,00018 2004 G. O. Tax Increment Refunding (EDA) 115 - 51,000 51,000 - - - Received transfer from Trunk Highway 7 TIF fund19 2003 G. O. Bond 113 11,000 - - 11,000 569,000 567,000 Bonds have been paid-off20 2000 G. O. Bond Reserve114 - - - - 121,000 121,00021 2000 G. O. Bond11429,000 3,880,000 - (3,851,000) - - Bonds refunded on 2/1/11 with proceeds of 2010C22 1999 G. O. Bond1131,000 319,000 - (318,000) 58,00058,000 Bonds paid-off in 201123Capital Project:24 Permanent Improvement Revolving37295,00045,000 (236,000) 14,000 4,095,000 3,679,000 $236K transferred to Streets capital project25 Streets Capital Projects37895,000 1,674,000 2,370,000 1,591,000 (840,000) - see comment at line 3526 Development EDA37 1,662,000 1,572,000 (116,000) (26,000) 23,967,000 15,983,0002011 activity includes $500K of revenue and expenditure related to CVB tax27 Police and Fire Pension10791,00014,000 (184,000) (107,000) 4,950,000 4,932,000 $184K transferred to General Fund28 Fire Station Bonds3645,000 9,928,000 - (9,883,000) 2,110,000 4,696,000 Bonds issued on 12/29/10, proceeds expended in 201129 Park Improvement107 2,077,000 1,755,000 - 322,000 2,598,000 2,666,000 2011 projects include Rec Center dehumification and Northside park redevelopment.30 Pavement Management105 1,770,000 1,320,000 337,000 787,000 2,337,000 2,070,000 Franchise fee revenue increased $387K over the prior year31 Redevelopment District (EDA)32 Duke West End TIF 123 765,000 25,000 (104,000) 636,000 228,000 648,000 Has $420K interfund loan payable to Development EDA33 Ellipse TIF District12310,0005,000 - 5,0002,0003,00034 HRA Levy123 1,114,00053,000 (1,550,000) (489,000) 4,614,000 4,592,000 $1.5M transferred to Streets Capital Projects for Hwy 7 & Louis project35 Trunk Highway 7123 1,137,0005,000 (562,000) 570,000 769,000 778,000 Transfers made to 2009A and 2004A Debt service funds36 HSTI123 1,123,000 1,058,000 - 65,000 712,000 710,000 Expenditures include reimbursement to Park Nicollet for remediation costs37 Victoria Ponds124453,000 156,000 - 297,000 653,000 650,00038 Park Center Housing124109,0005,000 (500,000) (396,000) 626,00032,000 $500K transferred to Housing Rehab Fund39 CSM TIF District124359,000 337,000 - 22,000 394,000 393,00040 Mill City TIF District124247,000 302,000 - (55,000) 164,000 165,00041 Park Commons TIF District124 1,690,000 1,685,000 - 5,000 490,000 476,00042 Edgewood TIF District12525,00039,000 - (14,000) 21,00022,00043 Elmwood Village125 1,078,000 230,000 (611,000) 237,000 (3,060,000) 425,000 This fund has an interfund loan payable to Housing Rehab in the amount of $3.4M44 Wolfe Lake TIF District125118,000 123,000 - (5,000) 75,00076,00045Aquila Commons125179,000 188,000 - (9,000) 96,00097,00046 Hoigaard's125 - - - - - - 47 Highway 7 Business Center125152,000 153,000 - (1,000) 13,00015,00048Enterprise:49 Water Utility42 4,478,000 3,754,000 (855,000) (131,000) 6,631,0006,00050 Sewer Utility42 5,826,000 4,503,000 (780,000) 543,000 7,617,000 2,429,00051 Solid Waste43 3,045,000 2,319,000 (288,000) 438,000 2,685,000 1,815,00052 Storm Water Utility43 1,931,000 1,346,000 (535,000) 50,000 14,267,000 1,554,00053Internal Service:54 Employee Administrative131329,000 1,074,000 850,000 105,000 (3,326,000) 1,405,000 $850K transferred from General Fund55 Uninsured Loss131125,000 140,000 - (15,000) 667,000 566,00056 Equipment Replacement131 1,176,000 1,944,00042,000 (726,000) 18,154,000 2,661,000 Total$63,667,000 $72,932,000$0 ($9,265,000) $109,809,000 $72,150,000Special Study Sessionl Meeting of June 18, 2012 (Item No. 1) Subject: 2011 Financial Statements – Auditors Discussion and ReviewPage 202 Meeting Date: June 18, 2012 Agenda Item #: 3a UNOFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA JUNE 4, 2012 1. Call to Order President Santa called the meeting to order at 7:25 p.m. Commissioners present: President Sue Santa, Steve Hallfin, Jeff Jacobs, Anne Mavity, Julia Ross, Susan Sanger, and Jake Spano. Commissioners absent: None. Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), and Recording Secretary (Ms. Hughes). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Minutes May 7, 2012 The minutes were approved as presented. 4. Approval of Agenda The agenda was approved as presented. 5. Reports 5a. Economic Development Authority Vendor Claims It was moved by Commissioner Jacobs, seconded by Commissioner Mavity, to accept for filing Vendor Claims for the period April 28, 2012, through May 25, 2012. The motion passed 7-0. 6. Old Business - None 7. New Business 7a. Contract for Private Redevelopment between the EDA and CAR Properties, LLC. EDA Resolution No. 12-08 Mr. Hunt presented the staff report and explained that CAR Properties, LLC, has acquired the former Home Hardware Store with the intention of leasing the building to another commercial tenant. He stated that Mr. Rahman has submitted an application for Construction Assistance Program (CAP) funds and proposed renovations include a new EDA Meeting of June 18, 2012 (Item No. 3a) Page 2 Subject: EDA Meeting Minutes of June 4, 2012 roof, windows, HVAC equipment, and other repairs to make the building Code compliant. He noted that Mr. Rahman also owns the 6416 building next door, which is in need of a new roof, and it makes sense to repair both roofs at the same time. He stated that Mr. Rahman hopes to complete the repairs by the end of summer and the total cost of repairs is approximately $77,000; of this amount, CAR Properties has applied for up to $25,000 in CAP assistance. He advised that CAP funds would be provided upon prove- up that qualified renovation costs were incurred and reimbursement would be structured as a forgivable loan secured by a personal guarantee and provided the building is held for five years , the entire loan would be forgiven. He added if the property is sold within five years, the entirety of the loan must be repaid with 6% interest. He stated the source of the CAP funds is unallocated tax increment and would be disbursed from the Development Fund. It was moved by Commissioner Jacobs, seconded by Commissioner Mavity, to approve EDA Resolution No. 12-08 Approving a Contract for Private Redevelopment with and a Construction Assistance Program Loan to CAR Properties, LLC, and Providing the Form, Terms, Covenants and Directions for Such Loan. Commissioner Hallfin advised that he would be abstaining from the vote due to potential business dealings with Mr. Rahman. The motion passed 6-0-1 (Commissioner Hallfin abstained). 8. Communications - None 9. Adjournment The meeting adjourned at 7:30 p.m. ______________________________________ ______________________________________ Secretary President Meeting Date: June 18, 2012 Agenda Item #: 5a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Vendor Claims Study Session Discussion Item Written Report Other: TITLE: EDA Vendor Claims RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period May 26 through June 8, 2012. POLICY CONSIDERATION: Not applicable. BACKGROUND: The Finance Department prepares this report for council’s review. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. Attachments: EDA Vendor Claims Prepared by: Connie Neubeck, Account Clerk 6/13/2012CITY OF ST LOUIS PARK 6:34:41R55CKSUM LOG23000VO 1Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 290.00DEVELOPMENT - EDA G&A TRAININGCITIZENS INDEPENDENT BANK 290.00 175.50WEST END TIF DIST G&A OTHER CONTRACTUAL SERVICESEHLERS & ASSOCIATES INC 175.50ELLIPSE ON EXC TIF DIST G&A OTHER CONTRACTUAL SERVICES 175.50CSM TIF DIST G&A OTHER CONTRACTUAL SERVICES 175.50MILL CITY G&A OTHER CONTRACTUAL SERVICES 175.50PARK COMMONS G&A OTHER CONTRACTUAL SERVICES 175.50EDGEWOOD TIF DIST G & A OTHER CONTRACTUAL SERVICES 175.50ELMWOOD VILLAGE G & A OTHER CONTRACTUAL SERVICES 175.50WOLFE LAKE COMMERCIAL TIF G&A OTHER CONTRACTUAL SERVICES 175.50AQUILA COMMONS G & A OTHER CONTRACTUAL SERVICES 175.50HWY 7 BUSINESS CENTER G & A OTHER CONTRACTUAL SERVICES 1,755.00 2,400.007015 WALKER-REYNOLDS WELD PROP OTHER CONTRACTUAL SERVICESFRATTALONE COMPANIES INC 2,400.00 218.04DEVELOPMENT - EDA G&A TELEPHONENEXTEL COMMUNICATIONS 218.04 4,633.44DEVELOPMENT - EDA G&A PLANNINGSRF CONSULTING GROUP INC 4,633.44 100.00DEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPSST LOUIS PARK SUNRISE ROTARY 100.00 45.00DEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPSTWIN WEST CHAMBER OF COMMERCE 45.00DEVELOPMENT - EDA G&A SEMINARS/CONFERENCES/PRESENTAT 90.00 Report Totals 9,486.48 EDA Meeting of June 18, 2012 (Item No. 5a) Subject: Vendor Claims Page 2 Meeting Date: June 18, 2012 Agenda Item #: 7a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Structurally Substandard Building Designation – 9920 Wayzata Blvd (Former Santorini’s Property) RECOMMENDED ACTION: Motion to Adopt EDA Resolution finding the building located at 9920 Wayzata Boulevard structurally substandard to a degree requiring substantial renovation or clearance. POLICY CONSIDERATION: Does the EDA concur with the Inspection Department’s finding that the building located at 9920 Wayzata Blvd is structurally substandard to a degree requiring substantial renovation or clearance? BACKGROUND: On November 10, 2011 the City’s Inspection Department conducted an inspection of the building located at 9920 Wayzata Blvd (formerly Santorini Taverna & Grill and “subject property”) and determined it to be unsafe and a public nuisance. As a result, the City plans to order the property owner to have the building either restored to full code compliance or removed (see staff report on tonight’s City Council Consent Calendar on this same topic). The subject property is at a highly visible location at the northwest quadrant of I-394 and U.S. 169 next to the Metropoint Business Center. The 1.3 acre subject property and adjacent 1.3 acre parcel (related parking lot) represent a redevelopment opportunity for the city. The redevelopment site is currently being marketed as a location for a major, high quality, mixed-use development. Should a project that meets the city’s redevelopment objectives for this site be proposed, the EDA may wish to consider facilitating it through the use of tax increment financing. The existence of a structurally substandard building on the subject property makes it possible for the EDA to establish a Redevelopment or Renovation and Renewal Tax Increment District at this location. However the removal of the substandard building prior to the creation of such a district eliminates that opportunity. To protect the potential for the EDA to create a TIF district at this location in the future while still removing the substandard structure now, the EDA must do two things. One, it must adopt a resolution establishing that the subject property is occupied by a structurally substandard building prior to its demolition and removal and that the EDA may, at some time in the future, choose to create a TIF district encompassing the property. Second, the demolition of the substandard building must be performed by the EDA or by a “developer” under an agreement with the EDA. For purposes of this agreement the “developer” can be the property owner. These actions protect the EDA’s ability to create a TIF district for up to three years following the demolition of the substandard building. Thus, based upon an inspection by the Chief Building Official on November 10, 2011 as summarized in a letter to the property owner dated January 23, 2012, the EDA is being asked to adopt a resolution finding the building on the subject property structurally substandard to a degree requiring removal. Adoption of the attached resolution does not commit the EDA to creating a EDA Meeting of June 18, 2012 (Item No. 7a) Page 2 Subject: Structurally Substandard Building Designation – 9920 Wayzata Blvd (Former Santorini’s Property) TIF district or entering into a redevelopment agreement for this site. It simply protects the EDA’s future ability to take those actions should it wish do so. After approval of this resolution, the building on the subject property may be demolished by the property owner under a development agreement with the EDA which will subsequently be brought back to the EDA for formal approval. In order for the EDA to include the subject property in a future TIF district, it must file a request for certification of such a district with the Hennepin County Auditor within three years after the date of building demolition. FINANCIAL OR BUDGET CONSIDERATION: In order to encourage redevelopment consistent with the Comprehensive Plan and preserve the EDA’s ability to create a redevelopment or renewal and renovation tax increment financing district on the subject property, the EDA must deem the subject property as occupied by a structurally substandard building prior to its demolition and removal. Thus the EDA is being asked to adopt a resolution finding the building on the subject property structurally substandard to a degree requiring demolition. This action does not commit the EDA to providing any amount of tax increment financing in conjunction with the future redevelopment of the subject property, rather it simply preserves the EDA’s ability to use this financing tool should it wish to utilize it in the future. VISION CONSIDERATION: This project supports the Strategic Directions of providing well-maintained [neighborhoods], being a connected and engaged community, as well as promoting community aesthetics. Attachments: Resolution Designating a Building as Structurally Substandard See Staff Report #4C on Tonight’s (6/18/12) City Council Consent Calendar Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director & City Manager EDA Meeting of June 18, 2012 (Item No. 7a) Page 3 Subject: Structurally Substandard Building Designation – 9920 Wayzata Blvd (Former Santorini’s Property) ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 12-____ RESOLUTION DESIGNATING A BUILDING AS STRUCTURALLY SUBSTANDARD BE IT RESOLVED By the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. Under Minnesota Statutes, Section 469.174, subd. 10(d), the Authority is authorized to deem parcels as occupied by structurally substandard buildings despite prior demolition or removal of the buildings, subject to certain terms and conditions as described in this resolution. 1.03. The Authority intends to cause demolition of the building located on the property described in Exhibit A hereto (the “Designated Property”), and may in the future include the Designated Property in a redevelopment or renewal and renovation tax increment financing district as defined in Minnesota Statutes. Sections 469.174, Subd. 10. Section 2. Building Designated Substandard; Other Proceedings. 2.01. The Authority finds that the building on the Designated Property as described in Exhibit A is structurally substandard to a degree requiring substantial renovation or clearance, based upon the inspection of such building on November 10, 2011 by the City Building Official and summarized in the letter addressed to the property owner, Mr. Tony Nicklow, dated January 23, 2012 on file in City Hall. 2.02. After the date of approval of this resolution, the building on the Designated Property may be demolished or removed by the Authority, or such demolition or removal may be financed by the Authority, or may be undertaken by a developer under a development agreement with the Authority. 2.03. The Authority intends to include Designated Property in a redevelopment or renewal and renovation tax increment financing district, and to file the request for certification of such district with the Hennepin County auditor within three years after the date of building demolition on the Designated Property. 2.04. Upon filing the request for certification of the new tax increment financing district, the Authority will notify the Hennepin County auditor that the original tax capacity of the Designated Property must be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the estimated market value of the parcel for the year in which the building was demolished or removed, but applying class rates for the current year, all in accordance with Minnesota Statutes, Section 469.174, subd. 10(d). 2.05. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. EDA Meeting of June 18, 2012 (Item No. 7a) Page 4 Subject: Structurally Substandard Building Designation – 9920 Wayzata Blvd (Former Santorini’s Property) Reviewed for Administration: Adopted by the Economic Development Authority the 18th of June, 2012 Executive Director President Attest Secretary EDA Meeting of June 18, 2012 (Item No. 7a) Page 5 Subject: Structurally Substandard Building Designation – 9920 Wayzata Blvd (Former Santorini’s Property) EXHIBIT A Description of Designated Property PID: 0111722140018 Address: 9920 Wayzata Boulevard St. Louis Park, MN Meeting Date: June 18, 2012 Agenda Item #: 2a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: 2011 Financial Statements – Auditors Presentation and Discussion 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, Report on Compliance and Report on Internal Control for the year ended December 31, 2011. 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 Report on Internal Control for the year ended December 31, 2011 to allow for effective decision making? • Would the Council desire to have any follow-up discussion on the Audit? BACKGROUND: 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 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. The City received a clean audit opinion, or “unqualified 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, 2011. 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 28 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in a strong financial condition. VISION CONSIDERATION: Not directly applicable. Attachments: 1) 2011 - Comprehensive Annual Financial Report* 2) 2011 - Communication with Those Charged with Governance* 3) 2011 – Reports on Compliance and Internal Controls* 4) 2011 - Audit Review* 5) 2011 – St. Louis Park Financial Summary* (* See related Special Study Session Report for Attachments.) Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager Meeting Date: June 18, 2012 Agenda Item #: 3a UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA MAY 29, 2012 The meeting convened at 6:55 p.m. Councilmembers present: Mayor Pro Tem Susan Sanger, Steve Hallfin, Anne Mavity, Julia Ross, Sue Santa, and Jake Spano. Councilmembers absent: Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), City Clerk (Ms. Stroth), City Engineer (Mr. Brink), Director of Public Works (Mr. Rardin), Communications Coordinator (Mr. Zwilling), Planner (Mr. Walther), Environmental Coordinator (Mr. Vaughan), Utilities Superintendent (Mr. Anderson), Engineering Program Coordinator (Ms. Adler), and Recording Secretary (Ms. Hughes). 1. Future Study Session Agenda Planning – June 4 and June 11, 2012 Mr. Harmening presented the proposed special study session agenda for June 4, 2012, and the proposed study session agenda for June 11, 2012. He indicated the June 4 special study session will be a closed executive session to discuss an employment claim asserted by a former firefighter. 2. Voter ID Constitutional Amendment Ms. Stroth presented the staff report. She advised that the proposed Constitutional Amendment would affect the City Council ward election in November 2013 if adopted, but not the primary election. She stated the City’s estimated cost is $11,000 to purchase special ballot boxes and to cover the cost of extra election judges and supplies. She added the cost would be higher in a presidential election year. Councilmember Mavity suggested the City move forward with a resolution similar to the City of Minneapolis resolution as described in the staff report. Councilmember Ross agreed and stated the proposed Constitutional Amendment is unnecessary and the City does not need to incur additional costs. Councilmember Mavity stated she would prefer that the City’s resolution not refer to this as “voter ID” in the resolution because it is unlikely that this will be the official name of the amendment on the ballot. Councilmember Santa suggested the City’s resolution state that the City opposes the Constitutional Amendment outlining the criteria for voting in the State of Minnesota. It was the consensus of the City Council to direct staff to prepare a draft resolution and forward it to Mayor Pro Tem Sanger for review and comment and to place the resolution on the June 18, 2012, City Council agenda for adoption. City Council Meeting of June 18, 2012 (Item No. 3a) Page 2 Subject: Study Session Minutes of May 29, 2012 3. Storm Water Follow Up – Wetlands Inventory Mr. Rardin presented the staff report and introduced Ms. Adler, Mr. Vaughan, and Mr. Anderson. He pointed out that the report refers to everything as a “water body” and was intended to provide a perspective on the City’s surface water management plan as part of the overall storm sewer system. He discussed the exhibits and stated the entire plan is aimed at addressing water quantity and water quality. Councilmember Santa requested further information regarding the Novartis site and the potential wetlands impact when the site changes hands as well as potential use of the site in the future. Ms. Adler advised the Novartis wetlands area is protected by the Conservation Act and the Conservation Act does not allow the wetland area to be filled in. She added that the wetlands should not impact the type of business on the site because the wetlands are separate from the building. Councilmember Santa noted that the City’s funding goals call for continued use of the City’s storm water utility fee as well as additional funding methods and opportunities and requested further information regarding funding sources. Ms. Adler explained that BWSR may have funding available as well as the Watershed District or the State, which is typically project-based funding. Mayor Pro Tem Sanger stated that one policy issue is the importance of prevention of degradation of water quality. She requested that Council have a policy discussion regarding what the City can do to strengthen its ordinances to minimize runoff into wetlands of materials that degrade water quality and whether there are other practices the City should consider adopting to strengthen the water quality or prevent degradation. Councilmember Mavity requested further information about the City’s water quality monitoring and testing and the results of that testing. She asked that the City provide information on current testing, when the last testing was completed, how regularly the testing is being done, how widely the testing is being done, and the results of that testing. Councilmember Santa also requested information on the cost of the testing. Mr. Rardin advised the City has been monitoring the City’s water quality for ten years through the CAMP program. He indicated that staff has been working to establish a water quality monitoring program which will be implemented this year and will include sampling and official testing. Mr. Anderson indicated that funding for the water quality monitoring program will come from the City’s storm water fund and will be carried out by the City’s seasonal part-time staff. He stated that baseline sampling of all water bodies will be taken in mid-June and will look for four different contaminants as a baseline to get event sampling. Councilmember Mavity expressed frustration with the delays by the State in promulgating its new regulations and in the meantime, there are some indications that the City has some impaired City Council Meeting of June 18, 2012 (Item No. 3a) Page 3 Subject: Study Session Minutes of May 29, 2012 water bodies but the City does not have the information it needs to address the issue. She stated she was concerned the City was doing nothing while it waits for the State to take action. Mr. Anderson stated the City’s waters have been tested and the City has the results of that testing because the City must adhere to Federal and other agency regulations. Councilmember Mavity felt the City should start testing now to determine if the City has any severely impaired waters and did not agree the City should wait for the State’s rules. She indicated she would like to have information on the health of each of the City’s water bodies and where impairment might be occurring so the City can determine where it should be investing in prevention, education, or treatment and whether it should be more aggressive in its treatment program. Councilmember Ross felt it was more important for the City to do testing on its larger water bodies because testing all of the water bodies would be cost prohibitive. She stated she felt the City could wait until June or July pending publication of the State’s regulations. Mr. Harmening stated the City has tools available to ensure water entering the City’s water bodies is as uncontaminated as possible. He indicated the City will consider whether additional measures can be taken, e.g., banning sealcoat materials on driveways. He stated the City will also make sure it has systems in place to measure whether or not the City is successful in measuring the condition of its water bodies in a way that will help the City understand what it can be doing differently. He added the City has been trying to be fiscally responsible and not spend money until it knows what the new rules will be. Mr. Rardin indicated that staff has been working on putting a plan in place to test the City’s water bodies this year and the City will continue to keep an eye on what the State is doing. He stated he felt the City’s water bodies were in good shape and there is nothing to indicate otherwise. He agreed to bring the City’s overall plan to Council for review including prevention measures and prevention plan improvements that might be needed. Councilmember Hallfin stated that nobody swims in the City’s water bodies and that should be taken into consideration as it relates to water quality. He added he felt the City was moving in the right direction and has been a good steward of the City’s bodies of water. 4. Storm Water Follow Up – Pond Classification and Treatments Mr. Vaughan presented the staff report and a chart of pond classifications and size information. He stated that most cities do not treat all or a majority of lakes and only spot treat based on recreational needs. Councilmember Mavity stated there are a lot of treatments available to treat waterways that do not include chemicals and urged the City to use non-chemical treatments. Councilmember Santa stated the most common complaint is odor and requested further information regarding the causes. Mr. Vaughan explained that small and shallow water bodies get full of vegetation quickly which causes the odor. He stated that Twin Lakes gets a lot of vegetation on the perimeter that does not City Council Meeting of June 18, 2012 (Item No. 3a) Page 4 Subject: Study Session Minutes of May 29, 2012 die out. He added that the dredging of the Twin Lakes holding pond last winter should help with the odor. It was the consensus of the City Council to agree with the pond classifications developed by staff. Council discussed the existing policy related to aquatic pond treatments. Mr. Harmening stated the current policy states that the City does not provide treatment for aesthetic purposes, excessive weed growth or algae, and a starting point might be to address complaints received by the City. Councilmember Spano stated he was okay with treating the water bodies identified as long as treating them does not create a negative impact to its actual use. Councilmember Ross agreed and stated the City has received complaints about Lamplighter which is one of the lakes where people fish. She stated if any treatment kills the fish, people will have to live with the odor. Mayor Pro Tem Sanger stated there has been no public input and the City does not know how residents feel about dumping chemicals into the lakes. She indicated she would like to learn more about treatment options and costs then have a public forum to get input. It was the consensus of the City Council to further discuss chemical and non-chemical treatment options for the water bodies identified by Council, including Lamplighter, and to also discuss cost and the positive/negative impacts of treatment. It was also the consensus of the City Council to undertake a public process if treatment options are to be pursued. 5. Pedestrian and Bicycle System Implementation Plan and Policy Review Mr. Rardin presented the staff report and proposed Pedestrian and Bicycle Plan. He also presented the ten-year Capital Improvement Program (CIP) with priorities developed after Council’s earlier study session discussion. Councilmember Santa stated that Item #11 on Exhibit G references a bikeway and felt this area needs a sidewalk first because the current sidewalk is in extremely poor condition. Councilmember Ross stated that Item #145 currently has a partial sidewalk on the north side of the railroad bridge and there is a deep drop-off if you are coming out from under the bridge and heading south. She requested that a complete sidewalk be installed in this area rather than a bikeway. Councilmember Mavity stated it was not clear what the City is planning with the light rail stations and circulation issues at Louisiana Avenue vis-à-vis sidewalk planning. She indicated the sidewalk connections in that neighborhood are inadequate to meet the needs at the light rail station in this area. She stated the SWLRT Community Works Committee has been discussing the proposed remeander of the creek behind Meadowbrook and how to bring residents from Meadowbrook to the light rail station and one proposal includes adding a sidewalk or path along the edge of the MSC. She requested that Council discuss a sidewalk connection along Oxford City Council Meeting of June 18, 2012 (Item No. 3a) Page 5 Subject: Study Session Minutes of May 29, 2012 and felt it would be a good gesture on the part of the City if the City were willing to put in that sidewalk connector. Mayor Pro Tem Sanger stated she was fine with this but wanted to make sure this segment is compatible with other trails along the creek and to make sure the City does not negate future progress in this area. It was the consensus of the City Council to pursue a sidewalk connection along the south side of Oxford to Louisiana Avenue at the City’s expense. Mayor Pro Tem Sanger agreed with staff’s proposed prioritization scheme but felt that the City ought to be giving priority to those sidewalks or bikeways that are on roads that are high vehicle traffic roads. She specifically referenced France Avenue. Councilmembers Ross and Santa agreed. Mayor Pro Tem Sanger requested that Council provide staff with any suggestions for moving priorities up or down as soon as possible. Councilmember Spano suggested that staff consider listing the projects in tiers, e.g., tier 1 represents the top 15 projects, in order to give staff flexibility to move things around as needed. 6. Communications/Meeting Check-In (Verbal) Councilmember Ross thanked Mr. Rardin and his staff for all their work on the storm water discussion and pedestrian and bicycle system implementation plan. Councilmember Spano stated his agreement with the proposed appointments to the SWLRT Business Advisory Committee (BAC) but questioned whether Council should consider appointing a representative who is south of Highway 7 adjacent to the light rail station. Mayor Pro Tem Sanger indicated some residents have questioned why Mark Wegner or Bob Suko from TC&W have not been appointed to a committee and felt they should be given an opportunity to participate. Councilmember Mavity felt that Mr. Curt Rahman was a good choice but expressed concern that there was not a lot of diversity on the committee. She stated the railroads have been involved in all discussions and have been generally well represented in the process. Councilmember Santa cautioned the City against relying on the same people all the time and did not want to see the City rely solely on Mr. Rahman when it could foster new relationships with other businesses. It was the consensus of the City Council to move forward with the recommended appointments to the SWLRT Business Advisory Committee to represent St. Louis Park businesses and commercial property owners in the station areas. City Council Meeting of June 18, 2012 (Item No. 3a) Page 6 Subject: Study Session Minutes of May 29, 2012 Mr. Harmening requested input regarding a meeting with the School Board this summer before a regular Council meeting. He suggested the summer meeting include a lighter agenda with possibly one topic for discussion, followed by a more formal meeting in the fall. Councilmember Santa requested that the meeting include a free-flow discussion of ideas as opposed to more structured presentations. It was the consensus of the City Council to hold a short, informal summer meeting with the School Board followed by a formal meeting in the fall. The meeting adjourned at 9:08 p.m. Written Reports provided and documented for recording purposes only: 7. April 2012 Financial Report 8. Miscellaneous Minor Code Amendments for Animals, Nuisances and Licensing 9. Environmental/Sustainability Task Force Process Update 10. Project Update: Metropolitan Council Environmental Services Hopkins Sewer Interceptor Rehabilitation – Cedar Lake Area Improvements 11. SWLRT Business Advisory Committee (BAC) Appointments 12. Update on 2012 Parktacular Block Party at West End ______________________________________ ______________________________________ Nancy Stroth, City Clerk Susan Sanger, Mayor Pro Tem Meeting Date: June 18, 2012 Agenda Item #: 3b UNOFFICIAL MINUTES SPECIAL CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JUNE 4, 2012 1. Call to Order Mayor Jacobs called the meeting to order at 6:31 p.m. Councilmembers present: Mayor Jeff Jacobs, Steve Hallfin, Jake Spano, Susan Sanger, Anne Mavity, Sue Santa, and Julia Ross. Staff and others present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), HR Director/Deputy City Manager (Ms. Deno), HR Coordinator (Ms. Fosse), Attorney Scott Lepak of Barna, Guzy & Steffen, Ltd., Attorneys Cliff Greene and Jenny Gassman-Pines of Greene Espel, PLLP. 1a. Roll Call 2. Closed Executive Session The City Council met in closed executive session to discuss an employment claim asserted by a former firefighter, Mr. Ludwig, arising from his separation from employment. 3. Adjournment The meeting adjourned at 7:16 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: June 18, 2012 Agenda Item #: 3c UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JUNE 4, 2012 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Steve Hallfin, Anne Mavity, Julia Ross, Susan Sanger, Sue Santa, and Jake Spano. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Housing Programs Coordinator (Ms. Larsen), Environmental Coordinator (Mr. Vaughan), Planner (Mr. Fulton), Director of Parks and Recreation (Ms. Walsh), Recreation Superintendent (Mr. Birno), Park Superintendent (Mr. Beane), and Recording Secretary (Ms. Hughes). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations - None 3. Approval of Minutes 3a. City Council Meeting Minutes of May 7, 2012 Councilmember Sanger requested that the second sentence of the third full paragraph on page 6 be revised to state “She indicated that the cars drivers in the area associated with Bais Yisroal leave their cars on both sides of the street between Sunset and Minnetonka Boulevard and spill over onto Joppa and it was her understanding that when Bais Yisroal was built, the City did not require them to install sufficient parking spaces so all the on- street parking spaces are being taken.” The minutes were approved as amended. 3b. Study Session Meeting Minutes of May 14, 2012 Councilmember Sanger requested that the fifth sentence of the first paragraph on page 5 be revised to state “She stated that the proposed sidewalk on Basswood and West 25th going into Benilde would be a waste of money because people on the France Avenue side use 26th Street to get to Benilde, the pedestrian bridge over Highway 100 is a low traffic road, Basswood is a low traffic road, and this would be a sidewalk to nowhere.” The minutes were approved as amended. City Council Meeting of June 18, 2012 (Item No. 3c) Page 2 Subject: City Council Meeting Minutes of June 4, 2012 3c. Special Study Session Meeting Minutes of May 21, 2012 The minutes were approved as presented. 3d. City Council Meeting Minutes of May 21, 2012 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. Adopt Resolution No. 12-075 accepting work and authorizing final payment in the amount of $5,235.63 for the 2011 Sanitary Sewer Mainline Rehabilitation Project - Project No. 2011-2200 with Visu-Sewer, Inc., City Contract No. 159-11. 4b. Appoint Duane Spiegle, Curt Rahman, and Brad Bakken to the SW LRT Business Advisory Committee for St. Louis Park’s LRT station areas. 4c. Adopt Resolution No. 12-076 accepting donation to the City to support the Environmental Coordinator’s attendance at the 2012 International Society of Arboriculture Conference. 4d. Approve for filing Vendor Claims. 4e. Approve for filing Telecommunications Advisory Commission Minutes February 29, 2012. 4f. Approve for filing Planning Commission Minutes April 18, 2012. It was moved by Councilmember Mavity, seconded by Councilmember Santa, to approve the Agenda and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 7-0. 5. Boards and Commissions – None 6. Public Hearings – None 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. MN GreenStep Cities Resolution. Resolution No. 12-077 Ms. Larsen presented the staff report and explained that Minnesota GreenStep Cities is a voluntary challenge that assists cities in achieving their sustainability goals through best practices. She stated in 2008, the City worked with the Minnesota Pollution Control Agency to develop a demonstration project and in 2010 and 2011, the City participated in a pilot program which included measurement of the City’s carbon footprint. She City Council Meeting of June 18, 2012 (Item No. 3c) Page 3 Subject: City Council Meeting Minutes of June 4, 2012 indicated that full participation in the Minnesota GreenStep Cities program is a natural next step in the progression of the City’s involvement with the program and achieving GreenStep status will provide recognition for the City’s efforts. Mr. Vaughan stated the City is currently implementing over ninety GreenStep best practices, which is well beyond the sixteen best practices that are requested. He indicated the City will focus on four areas, including promoting a green building policy, increasing waste recycling at multi-family buildings, developing an Active Living Policy, and further developing the City’s green purchasing guidelines. Mayor Jacobs congratulated City staff for the great work being done in this area. Councilmember Mavity stated City staff’s efforts on environmental issues assist the City in being a leader in its sustainability efforts. She reminded residents that today, June 4, 2012, is the last day to submit an application to serve on the City’s new environmental task force. It was moved by Councilmember Mavity, seconded by Councilmember Sanger, to adopt Resolution No. 12-077 Authorizing the City of St. Louis Park to Participate in the Minnesota GreenStep Cities Program. The motion passed 7-0. 8b. Elie Park Field – Conditional Use Permit for Fill. Resolution No. 12-078 Mr. Fulton presented the staff report and explained that proposed improvements at Elie Park, also known as Tower Park, require approximately 4,000 cubic yards of fill to improve drainage of the field. He stated that other improvements include the addition of gates, fencing, netting to prevent foul balls from entering adjacent properties, and installation of a drinking fountain. Councilmember Santa stated that this area currently stores storm water and asked if this storage will continue after the proposed improvements are completed. She also requested further information regarding the haul route. Mr. Beane explained that the park will be re-graded at a 2% grade out from home plate and current drainage will not change, the improvements will not add to the water flow in the area, and no impervious surface will be added. He stated that the City’s utility department has been involved in the project and have assured residents that the fill should not present an issue with this project. He indicated that the trucks will travel on Highway 7 to Texas Avenue to 34th Street, dump the fill and then exit on 34 ½ Street. He noted the City solicited quotes for the high school project and the successful bidder is the same contractor for this project, which will save the City money. Councilmember Spano requested clarification regarding hours of operation and that no weekend work is expected during this project. He also requested information regarding staging of trucks in the area and expressed concern about diesel trucks idling in the residential neighborhood waiting to deliver fill to the site. City Council Meeting of June 18, 2012 (Item No. 3c) Page 4 Subject: City Council Meeting Minutes of June 4, 2012 Mr. Beane advised that this project should not entail weekend work and staff will confirm this with the contractor. He stated that any staging will likely happen at the high school area and agreed to work with the contractor on this and require that no staging or idling be permitted on the Elie Park site. Councilmember Hallfin asked if the proposed improvements include a batting cage. Mr. Beane stated the current budget for the improvements does not allow for a batting cage. He added there will be a pitching warm-up area. It was moved by Councilmember Santa, seconded by Councilmember Mavity, to adopt Resolution No. 12-078 Granting Conditional Use Permit Under Section 36-79 of the St. Louis Park Ordinance Code Relating to Zoning to Permit the Importing of more than 400 Cubic Yards of Fill for Property Zoned POS – Parks and Open Space Located at 3429 Xylon Avenue South. The motion passed 7-0. 9. Communications Mayor Jacobs reminded residents about Parktacular on June 14-17 and stated that information is contained on the City’s website. He expressed the City Council’s thanks to the many Parktacular volunteers, particularly Joan Fenton, for making Parktacular a success every year. He also thanked all the City staff for their efforts. Mr. Harmening invited residents to the Fire Department’s open house and ribbon cutting ceremony at the new Fire Station No. 1 on Tuesday, June 12th, from 5:00-8:00 p.m. Councilmember Mavity invited adult residents to the St. Louis Park Community Foundation’s “friendraiser” and beer tasting on Friday, June 15th, from 5:00-7:00 p.m. before the street party at West End. She stated further information is available on Facebook or at www.slpcf.org. Councilmember Spano stated the City launched its new website yesterday and thanked Mr. Harmening, Mr. Pires, Mr. Zwilling, and their staff members for their efforts in creating the new website. He reminded residents the pool opens on Friday, June 8th. He also reminded residents that clean-up day is Saturday, June 9th, and further information is contained on the website. Councilmember Santa reminded residents that 36th Street at Minnehaha Creek will be closed for construction of the bridge over the creek starting June 6th and the closure will last approximately two to three weeks. 10. Adjournment The meeting adjourned at 7:48 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: June 18, 2012 Agenda Item #: 4a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Bid Tabulation: Street Project - MSA Street Rehab (Louisiana Avenue) - Project #2011-1100 RECOMMENDED ACTION: Motion to designate Bituminous Roadways, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $337,515.00 for the 2012 MSA Street Improvement Project, Project No. 2011-1100. POLICY CONSIDERATION: Does the City Council wish to take the final step to allow this project to move forward? BACKGROUND: Bid Information: Bids were received on June 4, 2012 for the 2012 MSA Street Improvement Project. The project includes work on Louisiana Avenue from Minnetonka Boulevard north to the Railroad Bridge. The project involves pavement resurfacing by a mill and overlay process in which the top 2 inches of pavement is ground off and replaced with new asphalt. The project also includes minor repairs to the concrete curb, sidewalk, storm sewer, and pedestrian curb ramps to meet current ADA standards. The project will be constructed under traffic (no detours); motorists will be guided through the work zone during periods of temporary lane closures. An advertisement for bids was published in the St. Louis Park Sun-Sailor on May 17, and 24, 2012 and in the Construction Bulletin on May 21, 2011. In addition, plans and specifications are noticed on the City Website and are made available electronically via the internet by our vendor Quest CDN.com. Email notification is provided to five minority associations and final printed plans are made available for viewing at the AGC of Minnesota Planroom and at City Hall. Twenty-eight contractors purchased plan sets with three Disadvantaged Business Enterprises (DBE’s) identifying themselves as subcontractors. A total of five (5) bids were received for this project. A summary of the bid results is as follows: CONTRACTOR BID AMOUNT Bituminous Roadways $337,515.00 Hardrives, Inc. $357,358.19 C.S. McCrossan Construction, Inc. $357,682.40 Midwest Asphalt Corporation $364,067.35 Northwest Asphalt Corporation $365,311.83 Engineer’s Estimate $343,729.50 City Council Meeting of June 18, 2012 (Item No. 4a) Page 2 Subject: Bid Tabulation: Park Center Blvd - 2012 MSA Street Improvement Project, Proj. No. 2011-1100 Evaluation of Bids: Staff has reviewed all of the bids submitted and has tabulated the results. From the review, staff recommends Bituminous Roadways, Inc. as the lowest responsible bidder. Bituminous Roadways is an experienced contractor that has worked for the City before and has successfully completed previous contracts. Construction Timeline: Construction is tentatively planned to begin in early July and should be completed by mid- August. FINANCIAL OR BUDGET CONSIDERATION: This project has been programmed in the Capital Improvement Program (C.I.P.) for construction in 2012. This project will be funded by State Aid funds (gas tax monies). Based on the low bid received, total project cost and funding details, previously estimated at $419,350, are revised as follows: Expenditures Construction Cost $337,515.00 Contingencies (10%) $ 33,750.00 Engineering & Administration (12%) $ 40,500.00 Total $411,765.50 Revenues Municipal State Aid Funds $411,765.00 VISION CONSIDERATION: Not applicable. Attachments: None Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager Meeting Date: June 18, 2012 Agenda Item #: 4b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Street Project – Hwy 169 Access Closure and Visual Barrier Construction – Project #2012-0102 RECOMMENDED ACTION: Motion to Adopt Resolution authorizing “No Parking” signs along the segment of Highway 169 Frontage Road that Mn/DOT is turning back to the City between 22nd Street and 23rd Street and the removal of the existing “Stop” signs at the intersection of Highway 169 Frontage Road at 22nd Street, 22nd Lane and 23rd Street. POLICY CONSIDERATION: Does the City Council wish to authorize the installation of the parking restrictions and the removal of the stop signs as noted in this staff report? The proposed action is consistent with City Policy. BACKGROUND: As part of the public involvement process, staff reviewed the need for parking restrictions on the segment of Highway 169 Frontage Road that will be turned back to the City. This road is proposed to be a narrow (18’ wide) two-way street connecting 22nd Street, 22nd Lane and 23rd Street. Due to the limited width, staff believes parking restrictions are necessary to allow access for emergency vehicle access and for public works maintenance activities such as snow plowing. In addition, feedback from residents indicated no need for parking on the frontage road as currently there is very little if any parking occurring here. Staff is also recommending removing the three “Stop” signs for west bound traffic on 22nd Street, 22nd Lane and 23rd Street at Highway 169 Frontage Road once the Highway 169 Frontage Road is reconstructed. These stops signs will not be necessary with the new roadway configuration. Proposed Project This project includes closing the direct access ramps between Highway 169 and 22nd Street, 22nd Lane and 23rd Street. Mn/DOT will construct a visual barrier at this location. The visual barrier will consist of a 10-12 foot high wall. The main reason Mn/DOT is proposing a visual barrier is because the project type (access closure) does not require the level of environmental analysis required by the Federal Highway Administration, and this particular location does not have a significant ranking under the noise abatement study. The visual barrier will offer some noise attenuation, but the main purpose is a visual screen. NEXT STEPS: Mn/DOT has opened bids for this project and is expecting to begin construction in early July. The project is expected to be completed this year. The installation of the “No Parking” signs and removal of the “Stop” signs by public works staff is expected to take place near the end of the construction project in late fall. City Council Meeting of June 18, 2012 (Item No. 4b) Page 2 Subject: Street Project – Hwy 169 Access Closure and Visual Barrier Construction – Project #2012-0102 FINANCIAL OR BUDGET CONSIDERATION: The cost for the additional “No Parking” signs and the removal of the “Stop” signs are minimal and will be funded from the Public Works general operation budget. VISION CONSIDERATION: Not applicable. Attachments: Resolution Traffic Control Changes Graphic Prepared by: Jack Sullivan, Engineering Project Manager Reviewed by: Mike Rardin, Director of Public Works Scott Brink, City Engineer Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 4b) Page 3 Subject: Street Project – Hwy 169 Access Closure and Visual Barrier Construction – Project #2012-0102 RESOLUTION NO. 12-___ RESOLUTION AUTHORIZING INSTALLATION OF “NO PARKING” SIGNS ON BOTH SIDES OF HIGHWAY 169 FRONTAGE ROAD FROM 22ND STREET TO 23RD STREET AND THE REMOVAL OF “STOP” SIGNS AT THE INTERSECTIONS OF HIGHWAY 169 FRONTAGE ROAD AND 22ND STREET, 22ND LANE AND 23RD STREET WHEREAS, the City of St. Louis Park, Minnesota has determined that the following traffic controls meet the requirements of the City’s policy for installation of parking restrictions and traffic control. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that the Director of Public Works is hereby authorized to install the following controls: 1. “NO PARKING” on both side of Highway 169 Frontage Road from 22nd Street to 23rd Street. 2. “STOP” sign removal at the intersection of Highway 169 Frontage Road and 22nd Street, 22nd Lane, and 23rd Street. Reviewed for Administration: Adopted by the City Council June 18, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of June 18, 2012 (Item No. 4b) Page 4 Subject: Street Project – Hwy 169 Access Closure and Visual Barrier Construction – Project #2012-0102 Meeting Date: June 18, 2012 Agenda Item #: 4c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Abatement of Hazardous Building – 9920 Wayzata Boulevard RECOMMENDED ACTION: Motion to Adopt Resolution ordering the abatement of the hazardous building located at 9920 Wayzata Boulevard. POLICY CONSIDERATION: Does Council concur with staff’s recommendation of declaring the vacant property as a hazardous building and authorize beginning the abatement process to protect the public health and safety? BACKGROUND: This commercial property once housed the Santorini Tavern and Grill. The establishment owner moved his business out of the city and vacated the property in 2009. Break-ins and vandalism has accelerated the deterioration of the property. Chief Building Official John Tilton posted the building as unsafe for occupancy and provided notice to the owner. There have been numerous attempts to work with the owner to bring the property into compliance. DISCUSSION: Attached is the January 23, 2012 notice summarizing the history and required corrective action. Based on the Building Official’s determination, the existing building is in a hazardous condition and uninhabitable due to deteriorating conditions. The condition of the building must be corrected so that it meets applicable building codes and City ordinances. The City’s goal is to have the owner complete necessary work to bring the building into compliance with all City codes. If the property is not maintained, the only effective solution is for the court to order the City to abate the hazards through demolition and assess costs against the property. Attached is a Resolution directing the City Attorney to notify and serve all parties with an interest in the property with the Demolition Order. FINANCIAL OR BUDGET CONSIDERATION: If the Court approves the summary of enforcement, the City will hire a contractor to abate the conditions to bring the property into compliance. Expected costs are estimated to be $60,000 to $70,000 if demolition by the City is required. The City will also seek, if possible, recovery of legal fees related to the action. VISION CONSIDERATION: Not applicable. Attachments: Inspection Notice Dated January 23, 2012 Resolution Ordering Abatement of Hazardous Building Demolition Order for Removal of a Hazardous Building Prepared by: Brian Hoffman, Director of Inspections Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 4c) Subject: Abatement of Hazardous Building - 9920 Wayzata Boulevard Page 2 City Council Meeting of June 18, 2012 (Item No. 4c) Subject: Abatement of Hazardous Building - 9920 Wayzata Boulevard Page 3 CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA Date ________________________________ Resolution ________________________________ Motion By ___________________________ Seconded By ______________________________ RESOLUTION NO. 12-____ RESOLUTION ORDERING ABATEMENT OF HAZARDOUS BUILDING WHEREAS, the Chief Building Official of the City of St. Louis Park has attempted without success to have the owner of certain property remedy the hazardous condition of the commercial building and structure situated on property at 9920 Wayzata Boulevard, St. Louis Park, Minnesota; and WHEREAS, the City Council has determined that the building on the property constitutes a hazardous building and is a health, safety and fire hazard within the meaning of Minnesota Statutes § 463.15, Subd. 3, and Minnesota Statutes § 463.25; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota: 1. Pursuant to Minnesota Statutes § 463.16 et seq., the City hereby adopts and approves the Demolition Order for Removal of Hazardous Building attached hereto as Exhibit “A”. 2. The City of St. Louis Park finds that the condition of the property located at 9920 Wayzata Boulevard, St. Louis Park, Minnesota, is a health and safety hazard and contains a hazardous building within the meaning of Minn. Stat. § 463.15, Subd. 3. 3. The City’s legal counsel, Campbell Knutson, P.A., 317 Eagandale Office Center, 1380 Corporate Center Curve, Eagan, Minnesota 55121, is directed to serve the Demolition Order and to proceed with enforcement in accordance with Minnesota Statutes § 463.15 et seq. ADOPTED this _______ day of _____________, 2012, by the City Council of the City of St. Louis Park, Minnesota. Attest: Adopted by the City Council June 18, 2012 Nancy Stroth, City Clerk Jeff Jacobs, Mayor City Council Meeting of June 18, 2012 (Item No. 4c) Subject: Abatement of Hazardous Building - 9920 Wayzata Boulevard Page 4 STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT CASE TYPE: Other Civil _____________________________________________ Court File No. ______________ IN RE: The Matter of a Hazardous Building DEMOLITION ORDER Located at 9920 Wayzata Boulevard, FOR REMOVAL OF A City of St. Louis Park, Hennepin County, Minnesota HAZARDOUS BUILDING _____________________________________________ TO: Owners and lienholders of the above real estate: 9920 Hotels, LLC, a Minnesota limited liability company, 9920 Wayzata Boulevard, St. Louis Park, Minnesota 55426; Anthony’s Shopping Center Partnership, LLP, a Minnesota limited liability partnership, 9920 Wayzata Boulevard, St. Louis Park, Minnesota 55426; Anthony Nicklow, 1300 Technology Drive, Eden Prairie, Minnesota 55344; William A. Nicklow, 5376 Waters Edge Drive, Minnetonka, Minnesota 55343; Premier Bank Rochester, a Minnesota corporation, 421 First Avenue SW, Rochester, Minnesota 55902; and Polo of Minnesota, Inc., a Minnesota corporation, 2741 Foxgate Drive, Minnetonka, Minnesota 55305. PLEASE BE ADVISED that pursuant to order of the St. Louis Park City Council and by authority of Minnesota Statutes § 463.15 et seq., you have twenty (20) days from the date of service of this Order upon you, to remedy the health and safety hazard and the hazardous condition of the building situated on property at 9920 Wayzata Boulevard, City of St. Louis Park, County of Hennepin, State of Minnesota, and legally described as follows: That part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117, Range 22, Hennepin County, Minnesota, described as beginning at a point on the most Southerly line of Lot 1, Block 7, Shelard Park distant 315.25 feet Easterly from the West line of said Southeast Quarter of the Northeast Quarter as measured along the most Southerly line of said Lot 1; thence South 87 degrees 41 minutes 54 seconds West along said most Southerly line of Lot 1 to said West line (assuming said West line has a bearing of South 1 degrees 11 minutes 16 seconds West) a distance of 315.25 feet; thence South 1 degree 11 minutes 16 seconds West along said West line a distance of 114.56 feet; thence South 77 degrees 38 minutes 16 seconds East a distance of 214.20 feet; thence North 87 degrees 44 minutes 40 seconds East a distance of 104.50 feet to the intersection with a line bearing South 1 degree 14 minutes 59 seconds West from the point of beginning; thence North 1 degree 14 minutes 59 seconds East a distance of 198.98 feet to the point of beginning. [Torrens Certificate No. 1212398] City Council Meeting of June 18, 2012 (Item No. 4c) Subject: Abatement of Hazardous Building - 9920 Wayzata Boulevard Page 5 AND That part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117, Range 22, Hennepin County, Minnesota, described as beginning at a point on the most Southerly line of Lot 1, Block 7, Shelard Park distant 315.25 feet Easterly from the West line of said Southeast Quarter of the Northeast Quarter as measured along said most Southerly line of Lot 1; thence North 87 degrees 41 minutes 54 seconds East (assuming said West line has a bearing of South 1 degree 11 minutes 16 seconds West) along said most Southerly line of Lot 1 and its Easterly extension a distance of 317.55 feet to the Northerly extension of the West line of Lot 4 said Block 7; thence South 02 degrees 03 minutes 09 seconds West along said Northerly extension of the West line of Lot 4 and the West line of said Lot 4, a distance of 119.74 feet; thence South 64 degrees 01 minutes 24 seconds West a distance of 197.53 feet; thence South 87 degrees 44 minutes 40 seconds West a distance of 139.87 feet to the intersection with a line bearing South 1 degree 14 minutes 59 seconds West from the point of beginning; thence North 1 degree 14 minutes 59 seconds East a distance of 198.98 feet to the point of beginning. [Torrens Certificate No. 1335184] Together with the adjacent portion of that part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117 North, Range 20 North, shown as Parcel 44 on Minnesota Department of Transportation Right of Way Plat No. 27- 3, lying Northerly of Line 1 described as follows: Line 1: Beginning at Right of Way Boundary Corner B211 as shown on said Plat No. 27-23; thence Easterly on an azimuth of 101 degrees 20 minutes 23 seconds along the boundary of said plat of 214.28 feet to Right of Way Boundary Corner B1; then continue on an azimuth of 101 degrees 20 minutes 23 seconds for 93.00 feet; thence deflect to the left for 350.87 feet on a non-tangential curve, concave to the North and passing through Right of Way Boundary Corner B2 as shown on said Plat 27-23, having a radius of 763.94 feet, a delta angle of 26 degrees 18 minutes 56 seconds, and a chord azimuth of 70 degrees 47 minutes 34 seconds to the Easterly line of Tract A hereinbefore described; thence on an azimuth of 01 degree 05 minutes 15 seconds for 7.37 feet to the Right of Way Boundary Corner B3 as shown on said plat No. 27-23 and there terminating. [Abstract property] The Environmental Health Specialist and the Building Official for the City of St. Louis Park have inspected the above referenced property. The inspection revealed that the commercial building as presently situated on the property constitutes a hazardous condition pursuant to Minn. Stat. § 463.25 and is a health, safety, and fire hazard to the residents of the City of St. Louis Park. All personal property and fixtures shall be removed from the building within twenty (20) days from the date of service of this Order. City Council Meeting of June 18, 2012 (Item No. 4c) Subject: Abatement of Hazardous Building - 9920 Wayzata Boulevard Page 6 If you fail to remedy the situation the City will seek permission from the District Court for the City to do so. The City will move the District Court for summary enforcement of this Order pursuant to Minnesota Statutes §463.19 unless you remedy the situation within said twenty (20) day period or unless an answer is filed within twenty (20) days of service of this Order upon you. Upon enforcement of the Order by the City, all costs expended by the City will be assessed against the real property and collected as other taxes as provided in Minnesota Statutes § 463.21. Dated: ___________________, 2012 CAMPBELL KNUTSON Professional Association By: __________________________________ Soren M. Mattick, #27785X City Attorney 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: (651) 452-5000 1 ACKNOWLEDGMENT The City of St. Louis Park, by and through its undersigned attorney, acknowledges that costs, disbursements, and reasonable attorney and witness fees may be awarded to the opposing party or parties pursuant to Minnesota Statutes § 549.21, Subd. 2. Dated: __________________, 2012. ____________________________________ Soren M. Mattick, #27785X City Council Meeting of June 18, 2012 (Item No. 4c) Subject: Abatement of Hazardous Building - 9920 Wayzata Boulevard Page 7 Meeting Date: June 18, 2012 Agenda Item #: 4d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Temporary On-Sale Intoxicating Liquor License – Church of the Holy Family RECOMMENDED ACTION: Motion to Approve a Temporary On-Sale Intoxicating Liquor License for Church of the Holy Family at 5900 & 5925 West Lake Street for August 18, 2012. POLICY CONSIDERATION: Does Council agree with staff’s recommendation to approve a temporary on-sale intoxicating liquor license for Church of the Holy Family during their annual Family Festival to be held August 18, 2012? BACKGROUND: The Church of the Holy Family has made application for a temporary on-sale intoxicating liquor license for their annual Family Festival event scheduled for August 18, 2012. The event will take place under a tent at the Holy Family Academy parking lot, 5925 W. Lake Street, from noon to midnight. The activities at the festival include a chicken dinner, beer garden, and dance, with the sounds of Papa D and the Knights of Rock & Roll. The Police Department has completed the background investigation on the 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: Not Applicable. Attachments: None Prepared by: Kay Midura, Office Assistant - Administration Approved by: Tom Harmening, City Manager Meeting Date: June 18, 2012 Agenda Item #: 4e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Temporary On-Sale Intoxicating Liquor License for St. Louis Park Public Schools Foundation RECOMMENDED ACTION: Motion to Approve a Temporary On-Sale Intoxicating Liquor License for St. Louis Park Public Schools Foundation, Box 26393, in St. Louis Park for an event to be held on September 29, 2012, at Warehouse Winery. POLICY CONSIDERATION: Does Council wish to approve the temporary on-sale intoxicating liquor license for St. Louis Park Public Schools Foundation during their event being held at Warehouse Winery? BACKGROUND: The St. Louis Park Public Schools Foundation has made an application for a temporary on-sale intoxicating liquor license for an event scheduled for September 29, 2012. The event will take place at Warehouse Winery, 6415 Cambridge Street, from 6:00-9:30 pm. The event is being held in support of the Foundation’s two funds, which benefit St. Louis Park public schools. The Police Department has completed the background investigation on the 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: Not Applicable. Attachments: None Prepared by: Kay Midura, Office Assistant - Administration Approved by: Tom Harmening, City Manager Meeting Date: June 18, 2012 Agenda Item #: 4f Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Final Payment Resolution - Contract 46-11 Valley Paving, Inc. – Project No. 2010-1000 RECOMMENDED ACTION: Motion to Adopt Resolution authorizing final payment in the amount of $117,561.05 and accepting work for the 2011 Local Street Rehabilitation - Pavement Management Area 7 Repair with Valley Paving, Inc. Project No. 2010-1000, City Contract No. 46-11. POLICY CONSIDERATION: Not applicable. BACKGROUND: Bids were received on April 14, 2011 for the Pavement Management Project – Area 7. This was the seventh year of the City’s Pavement Management Program. Work in Area 7 occurred on selected streets in the Elliot, Elliot View, Willow Park and Pennsylvania Park Neighborhoods. The work included replacing the old pavement with a n ew asphalt surface. Other work associated with the project included 2 blocks of water main replacement, drainage system repairs and fire hydrant replacement. City Council awarded the project to Valley Paving, Inc. on April 25, 2011 in the amount of $1,381,042.10. The Contractor completed this work within the contract time allowed at a final contract cost of $1,326,534.25 including two change orders: The two change orders amounted to $8,673.74 for the installation of traffic signal loop detectors, unforeseen storm sewer system repairs, water main pipe bedding material, none of which were included in the original contract. There was also an under run of contract items amounting to $63,181.59. FINANCIAL OR BUDGET CONSIDERATION: The cost for this project was accounted for in the 2011 capital budget. This project is funded by four sources, the Pavement Management Fund for the associated street work, the Water Utility Fund for the water main and hydrant replacement work, Storm Water Utility Fund for the associated storm sewer work and special assessments for the residents optional water service line replacements offered under this contract at their cost. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Mike Rardin, Public Works Director Scott Brink, City Engineer Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 4f) Page 2 Subject: Final Payment Resolution - Contract 16-11 Valley Paving – Project 2010-1000 RESOLUTION NO. 12-___ RESOLUTION AUTHORIZING FINAL PAYMENT IN THE AMOUNT OF $117,561.05 AND ACCEPTING THE WORK FOR THE 2011 LOCAL STREET REHABILITATION PROJECT WITH VALLEY PAVING, INC. CITY PROJECT NO. 2010-1000 CONTRACT NO. 46-11 NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. Pursuant to a written contract with the City dated April 25, 2011, Valley Paving, Inc. has satisfactorily completed the 2010 Local Street Rehabilitation Project, as per Contract No. 46-11. 2. The Director of Public Works has filed his recommendations for final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Original Contract Price $ 1,381,042.10 Change Order 1 $ 6,543.79 Change Order 2 $ 2,129.95 Underrun $ (63,181.59) Contract Amount $ 1,326,534.25 Previous Payments $ 1,208,973.20 Balance Due $ 117,561.05 Reviewed for Administration: Adopted by the City Council June 18, 2012 City Manager Mayor Attest: City Clerk Meeting Date: June 18, 2012 Agenda Item #: 4g Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Acceptance of Donation to Westwood Hills Nature Center RECOMMENDED ACTION: Motion to Adopt Resolution accepting a donation from George and Pat Foulkes in the amount of $1,000 for benches to be installed by the new pond area in front of Westwood Hills Nature Center. POLICY CONSIDERATION: Does the City Council wish to accept the gift with restrictions on its use? BACKGROUND: 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. George and Pat Foulkes are graciously donating to Westwood Hills Nature Center an amount of $1,000. This donation is given with restrictions that the donation will provide benches by the new pond area in front of Westwood Hills Nature Center. FINANCIAL OR BUDGET CONSIDERATION: This donation will provide benches at the Westwood Hills Nature Center. VISION CONSIDERATION: Collaboration with other organizations is related to the results of Vision St. Louis Park and one of the adopted Strategic Directions that “St. Louis Park is committed to being a connected and engaged community”. Attachments: Resolution Prepared by: Stacy Voelker, Administrative Secretary Reviewed by: Mark Oestreich, Manager of Westwood Hills Nature Center Cindy Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 4g) Page 2 Subject: Acceptance of Donation to the Westwood Hills Nature Center RESOLUTION NO. 12-____ RESOLUTION APPROVING ACCEPTANCE OF DONATION FROM GEORGE AND PAT FOULKES IN THE AMOUNT OF $1,000 FOR BENCHES AT WESTWOOD HILLS NATURE CENTER WHEREAS, The City of St. Louis Park is required by State statute to authorize acceptance of any donations; and WHEREAS, the City Council must also ratify any restrictions placed on the donation by the donor; and WHEREAS, George and Pat Foulkes desire to assist Westwood Hills Nature Center with support for benches by the pond area with a donation of $1,000; 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 George and Pat Foulkes with the understanding it will be used for benches at the Nature Center. Reviewed for Administration Adopted by the City Council June 18, 2012 City Manager Mayor Attest: City Clerk Meeting Date: June 18, 2012 Agenda Item #: 4h Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Traffic Study Number 633: Authorize the Revision of Parking Restrictions along the North Frontage Road of County Road 25 from Ottawa Avenue to Raleigh Avenue RECOMMENDED COUNCIL ACTION: Motion to Adopt Resolution revising parking restrictions along the North Frontage Road of County Road 25 from Ottawa Avenue to Raleigh Avenue. POLICY CONSIDERATION: Does the City Council wish to authorize the revision of the parking restrictions as noted in this staff report? The proposed action is consistent with City policy. BACKGROUND: In November 2011, additional parking restrictions were placed on south side of the north frontage road of County Road 25, just south of Skippy Field. This was done after the Police Department had shared concerns about access along the road when there is heavy parking on both sides, particularly on game nights. The Park and Rec Department would like to remove the “No Parking” restrictions on the north side of the frontage road, on either side of the head-in parking bays, to preserve parking for games at Skippy Field. The attached resolution allows for this parking by rescinding Resolution No. 89-47, which restricted parking on the north side of the frontage road, and then putting “No Parking” restrictions back in place on the north side from Ottawa Avenue to a point 230 feet to the west. The “No Parking” restrictions on the south side of the frontage road remain unchanged. Staff from Public Works, Police, and Parks and Recreation have discussed this issue, and are comfortable with these changes. The North Frontage Road of County Road 25 is a county road, and staff from Hennepin County have been notified of these parking restrictions. FINANCIAL OR BUDGET CONSIDERATION: The cost of enacting these controls is minimal and will come out of the general operating budget. VISION CONSIDERATION: Not applicable. Attachments: Resolution Map Prepared by: Laura Adler, Engineering Program Coordinator Reviewed by: Scott A. Brink, City Engineer Michael Rardin, Director of Public Works Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 4h) Page 2 Subject: TS 633: Authorize the Revision of Parking Restrictions North Frontage Rd of Cty Rd 25 RESOLUTION NO. 12-____ RESOLUTION RESCINDING RESOLUTION NO. 89-47 AND AUTHORIZING INSTALLATION OF “NO PARKING” RESTRICTIONS ON THE NORTH SIDE OF THE NORTH FRONTAGE ROAD OF COUNTY ROAD 25 FROM OTTAWA AVENUE SOUTH TO A POINT 230 FEET TO THE WEST TRAFFIC STUDY NO. 633 WHEREAS, the City of St. Louis Park, Minnesota has been requested, has studied, and has determined that the following traffic controls meet the requirements of the City’s policy for installation of parking restrictions. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that Resolution No. 89-47 be rescinded. LET IT BE FURTHER RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that the Director of Public Works is hereby authorized to install the following controls: 1. “No Parking” on the north side of the North Frontage Road of County Road 25 from Ottawa Avenue South to a point 230 feet to the west. Reviewed for Administration: Adopted by the City Council June 18, 2012 City Manager Mayor Attest: City Clerk TS 633: Parking Restrictions on the North Frontage Road of County Road 25 Areas to become available for parking Areas to remain "No Parking" City Council Meeting of June 18, 2012 (Item No. 4h) Subject: TS 633: Authorize the Revision of Parking Restrictions North Frontage Rd of Cty Rd 25 Page 3 Meeting Date: June 18, 2012 Agenda Item #: 4i Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Vendor Claims RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period May 26 through June 8, 2012. POLICY CONSIDERATION: Not applicable. BACKGROUND: The Finance Department prepares this report on a monthly basis for Council’s review. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. Attachments: Vendor Claims Prepared by: Connie Neubeck, Account Clerk 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 1Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 2,013.43PARK AND RECREATION BALANCE SH INVENTORYAAA-LICENSE DIVISION 2,013.43 120.44ORGANIZED REC G & A MILEAGE-PERSONAL CARABERNATHY, LISA 120.44 20.48WATER UTILITY G&A EQUIPMENT PARTSABLE HOSE & RUBBER INC 20.48 506.87PARK AND RECREATION BALANCE SH INVENTORYABM EQUIPMENT & SUPPLY INC 506.87 7,307.20GENERAL BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICESABM JANITORIAL SERVICES 7,307.20 228.16PARK AND RECREATION BALANCE SH INVENTORYACTION FLEET INC 228.16 2,173.00WATER UTILITY G&A GENERAL PROFESSIONAL SERVICESAE2S 728.25WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDI 2,901.25 204.43PARK MAINTENANCE G & A GENERAL SUPPLIESAIM ELECTRONICS 204.43 3.62-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSAIRGAS NORTH CENTRAL 56.24OPERATIONSOPERATIONAL SUPPLIES 52.62 12,750.00ESCROWSGENERALAKARE COMPANIES LLC 12,750.00 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESALBERTSSON HANSEN ARCHITECTURE 225.00 2,046.00H.V.A.C. EQUIP. MTCE BUILDING MTCE SERVICEALLIANCE MECH SRVCS INC 2,046.00 4.63GENERAL BUILDING MAINTENANCE OPERATIONAL SUPPLIESAMERIPRIDE LINEN & APPAREL SER 137.56PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 88.45PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 78.94ENTERPRISE G & A GENERAL SUPPLIES City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 2 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 2Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 49.41VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 61.82WATER UTILITY G&A OPERATIONAL SUPPLIES 61.82SEWER UTILITY G&A OPERATIONAL SUPPLIES 10.30STORM WATER UTILITY G&A OPERATIONAL SUPPLIES 492.93 1,727.75FABRICATIONOTHER IMPROVEMENT SUPPLIESANDERSEN INC, EARL 1,727.75 542.62GENERAL CUSTODIAL DUTIES CLEANING/WASTE REMOVAL SUPPLYARAMARK UNIFORM CORP ACCTS 542.62 35.11E-911 PROGRAM TELEPHONEAT&T 35.11 169.34PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICESBARNUM GATE SERVICES INC 169.34 22.43WATER UTILITY G&A GENERAL SUPPLIESBATTERIES PLUS 22.43 13.72-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSBELL, DAVID 213.32PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 199.60 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESBERGFORD ARCHITECTURE, JOHN 225.00 183.02PARK AND RECREATION BALANCE SH INVENTORYBG AUTOMOTIVE OF MINNESOTA 183.02 155.95ORGANIZED REC G & A MILEAGE-PERSONAL CARBIRNO, RICK 155.95 343.58INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESBOBIER, HEIDI 343.58 1,500.00ESCROWSDEMO / BROOKSIDE TRAFFICBROPHY, SUZANNE 1,500.00 8,836.69PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDICAMPBELLS SIGNATURE LANDSCAPES 8,836.69 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 3 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 3Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 215.00INSPECTIONS G & A OTHER NON-BUSINESSCAPELLI, DUSTIN 215.00 766.29IT G & A EQUIPMENT MTCE SERVICECARTRIDGE CARE 766.29 228.67WATER UTILITY G&A GENERAL CUSTOMERSCBC GRIFFEN COS 228.67 4,365.09MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESCENTER ENERGY & ENVIRONMENT 4,365.09 10,400.00EMPLOYEE FLEXIBLE SPENDING B/S OTHER RETIREMENTCENTRAL PENSION FUND 10,400.00 9.20-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSCENTURY MANUFACTURING CORP 143.04BUILDING MAINTENANCE GENERAL SUPPLIES 133.84 47.17FACILITIES MCTE G & A GENERAL SUPPLIESCINTAS FIRST AID & SAFETY 47.17 266.52-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSCITIZENS INDEPENDENT BANK 297.30ADMINISTRATION G & A MEETING EXPENSE 13.30HUMAN RESOURCES GENERAL SUPPLIES 38.45HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 542.40HUMAN RESOURCES TRAINING 9.98IT G & A GENERAL SUPPLIES 104.93IT G & A TELEPHONE 46.02ASSESSING G & A OFFICE SUPPLIES 400.00COMM DEV PLANNING G & A TRAINING 2,549.69POLICE G & A OPERATIONAL SUPPLIES 1,410.75NEIGHBORHOOD OUTREACH OPERATIONAL SUPPLIES 390.00SUPERVISORYTRAINING 244.89-SCHOOL LIASON TRAINING 587.50OPERATIONSGENERAL SUPPLIES 443.50OPERATIONSTRAINING 32.02FIREEQUIPMENT PARTS 33.04INSPECTIONS G & A GENERAL SUPPLIES 102.86PUBLIC WORKS G & A OFFICE SUPPLIES 225.00PUBLIC WORKS G & A SEMINARS/CONFERENCES/PRESENTAT City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 4 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 4Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 365.72PUBLIC WORKS G & A MEETING EXPENSE 76.42ENGINEERING G & A OFFICE SUPPLIES 450.00ENGINEERING G & A SEMINARS/CONFERENCES/PRESENTAT 365.72ENGINEERING G & A MEETING EXPENSE 170.68PARK AND RECREATION BALANCE SH INVENTORY 9.62-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTS 56.74-ORGANIZED REC G & A GENERAL SUPPLIES 14.00ORGANIZED REC G & A TRAINING 1,500.00ADULT PROGRAMS GENERAL SUPPLIES 39.54SOFTBALLGENERAL SUPPLIES 14.06SPECIAL EVENTS GENERAL SUPPLIES 296.00YOUTH PROGRAMS OTHER CONTRACTUAL SERVICES 839.74ENVIRONMENTAL G & A OTHER IMPROVEMENT SUPPLIES 51.43BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 157.64WESTWOOD G & A GENERAL SUPPLIES 30.00ARENA MAINTENANCE TRAINING 102.93AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 7.27-VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 174.69TV PRODUCTION GENERAL SUPPLIES 375.00MOVE-UP PROGRAM GENERAL SUPPLIES 215.00WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDI 166.00SOLID WASTE RECYCLING GRANT SUBSCRIPTIONS/MEMBERSHIPS 12,046.27 2,250.92CONCESSIONSCONCESSION SUPPLIESCOCA-COLA BOTTLING CO 2,250.92 166.95IT G & A DATACOMMUNICATIONSCOMCAST 166.95 496.22POLICE G & A OPERATIONAL SUPPLIESCOMPAR INC 496.22 46.50INSPECTIONS G & A ELECTRICALCORBETT, MICHAEL 46.50 237.27OPERATIONSFIRE PREVENTION SUPPLIESCOSTCO 237.27 4,336.72AQUATIC PARK BUDGET GENERAL SUPPLIESCREATIVE WATER SOLUTIONS LLC 4,336.72 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 5 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 5Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 158.41POLICE G & A SUBSISTENCE SUPPLIESCUB FOODS 51.47OPERATIONSGENERAL SUPPLIES 209.88 472.52WATER UTILITY G&A EQUIPMENT MTCE SERVICECUMMINS NPOWER LLC 472.52 5,600.00ORGANIZED REC G & A OTHER CONTRACTUAL SERVICESCUNINGHAM GROUP ARCHITECTURE I 5,600.00 242.25SOFTBALLOTHER CONTRACTUAL SERVICESCURRAN-MOORE, KIM 242.25 553.86GENERAL BUILDING MAINTENANCE CLEANING/WASTE REMOVAL SUPPLYDALCO ENTERPRISES INC 813.02REC CENTER BUILDING GENERAL SUPPLIES 1,366.88 88.00GENERAL BUILDING MAINTENANCE LICENSESDEPT LABOR & INDUSTRY 88.00 47.19WATER UTILITY G&A GENERAL CUSTOMERSDEXTER, PATRICIA 47.19 755.23ENTERPRISE G & A GENERAL SUPPLIESDJ ELECTRIC SERVICES INC 755.23 452.00SUPPORT SERVICES G&A POSTAGEDO-GOOD.BIZ INC 452.00 18,000.00STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEDRYDEN EXCAVATING INC 18,000.00 2,047.50GREENSBORO HIA OTHER CONTRACTUAL SERVICESEHLERS & ASSOCIATES INC 2,047.50 765.11SEWER UTILITY G&A EQUIPMENT PARTSELECTRIC PUMP INC 4,921.62SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 13,034.21SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 18,720.94 2,791.38PARK AND RECREATION BALANCE SH INVENTORYEMERGENCY AUTOMOTIVE TECHNOLOG 2,791.38 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 6 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 6Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 450.00ADMINISTRATION G & A TRAININGEMPLOYEE STRATEGIES INC 450.00 104.86WATER UTILITY G&A GENERAL CUSTOMERSENGEBRETSEN, ANTHONY 104.86 11.56WATER UTILITY G&A GENERAL CUSTOMERSENGELBERT, DAVID 11.56 2,500.00ESCROWSDEMO / BROOKSIDE TRAFFICENSIGN LLC 2,500.00 5,644.00NETWORK SUPPORT SERVICES GENERAL PROFESSIONAL SERVICESESP SYSTEMS PROFESSIONALS INC 5,644.00 82.84PARK AND RECREATION BALANCE SH INVENTORYFACTORY MOTOR PARTS CO 82.84 6.02GENERAL REPAIR GENERAL SUPPLIESFASTENAL COMPANY 47.94SEWER UTILITY G&A SMALL TOOLS 53.96 69.88POLICE G & A POSTAGEFEDEX 69.88 1,042.00BUILDING MAINTENANCE GENERAL SUPPLIESFENNERT, WILLIAM 1,042.00 135.41WATER UTILITY G&A GENERAL SUPPLIESFERGUSON WATERWORKS 11,447.36WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 11,582.77 442.62POLICE G & A OPERATIONAL SUPPLIESFOURTH JUDICIAL DISTRICT ADMIN 442.62 13,425.00GENERAL BUILDING MAINTENANCE BUILDING MTCE SERVICEGELLERMAN CONSTRUCTION CO INC 4,448.00MUNICIPAL BLDG BUILDING MTCE SERVICE 17,873.00 242.60REC CENTER BUILDING EQUIPMENT MTCE SERVICEGENERAL PARTS INC 242.60 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 7 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 7Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 382.50SOFTBALLOTHER CONTRACTUAL SERVICESGIRARD, KENNETH 382.50 42.81HUMAN RESOURCES TRAININGGOTHBERG, BRIDGET 42.81 1,224.00EMPLOYEE FLEX SPEND G&A TUITIONGRAHAM, NATHAN 1,224.00 1,144.63WATER UTILITY G&A EQUIPMENT MTCE SERVICEGRAINGER INC, WW 1,144.63 116.80INSPECTIONS G & A PLUMBINGGROTH SEWER & WATER 116.80 994.18EMPLOYEE FLEX SPEND G&A TUITIONHAGEN, DENNIS 994.18 510.00SOFTBALLOTHER CONTRACTUAL SERVICESHAMILTON, MIKE 510.00 4,000.00ESCROWSDEMO / BROOKSIDE TRAFFICHARRIER, BRUCE 4,000.00 294.27AQUATIC PARK BUDGET GENERAL SUPPLIESHAWKINS INC 6,111.46AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 10,261.57WATER UTILITY G&A OPERATIONAL SUPPLIES 16,667.30 1,000.35PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIESHCI CHEMTEC INC 1,000.35 500.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESHELLO! BOOKING INC 500.00 5,334.00CDBG BALANCE SHEET DUE TO OTHER GOVTSHENNEPIN COUNTY 5,334.00 45.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPSHENNEPIN COUNTY TAXPAYER SERVI 45.00 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 8 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 8Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 534.38IT G & A COMPUTER SERVICESHENNEPIN COUNTY TREASURER 6,806.00POLICE G & A SUBSISTENCE SERVICE 7,340.38 1,259.28OPERATIONSTRAININGHENNEPIN TECHNICAL COLLEGE 1,259.28 639.74OFFICE EQUIP MTCE OTHERHENRICKSEN PSG 639.74 16,781.95TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTHEWLETT-PACKARD CO 16,781.95 1,500.00IT G & A GENERAL PROFESSIONAL SERVICESHEYER SOLUTIONS 1,500.00 750.00INSTALLATIONOTHER IMPROVEMENT SUPPLIESHIGHWAY TECHNOLOGIES INC 750.00 10.66CRACK SEALING PROJECTS GENERAL SUPPLIESHOME DEPOT CREDIT SERVICES 21.73PLAYGROUND EQUIPMENT MAINTENAN GENERAL SUPPLIES 188.00BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 220.39 84.36ASSESSING G & A MILEAGE-PERSONAL CARHOPPE, MARK 84.36 75.00VOLLEYBALLOTHER CONTRACTUAL SERVICESHOWES, JEFFREY 363.50SOFTBALLOTHER CONTRACTUAL SERVICES 438.50 177.50SOFTBALLOTHER CONTRACTUAL SERVICESHOWES, KRISTINE 177.50 279.00OPERATIONSSUBSCRIPTIONS/MEMBERSHIPSIAFC MEMBERSHIP 279.00 350.00SUPPORT SERVICES TRAININGIAPE 350.00 1,000.00ESCROWSPMC ESCROWIHNATOVICH, PAVEL 1,000.00 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 9 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 9Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 44.86SPLASH PAD MAINT - Oak Hill Pk GENERAL SUPPLIESINDELCO 715.30WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 760.16 300.00HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENTINSIGHT EDGE 300.00 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESJDA DESIGN ARCHITECTS 225.00 349.84PARK MAINTENANCE G & A GENERAL SUPPLIESJERRY'S HARDWARE 10.72PARK BUILDING MAINTENANCE GENERAL SUPPLIES 16.34GENERAL REPAIR GENERAL SUPPLIES 39.93SEWER UTILITY G&A BLDG/STRUCTURE SUPPLIES 416.83 16.17IRRIGATION MAINTENANCE GENERAL SUPPLIESJOHN DEERE LANDSCAPES/LESCO 16.17 48.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESKARCHER-RAMOS, AMBER 48.00 276.92EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSKELLER, JASMINE Z 276.92 367.00SUNSET RIDGE LEGAL SERVICESKENNEDY & GRAVEN 1,242.00GREENSBORO HIA LEGAL SERVICES 576.00WESTWOOD VILLAS HIA LEGAL SERVICES 2,185.00 204.00SOFTBALLOTHER CONTRACTUAL SERVICESKUBES, JON 204.00 635.91TREE REPLACEMENT TREE REPLACEMENTLANDSCAPING BY DAVID MILLER LL 635.91 1,133.28WATER UTILITY G&A EQUIPMENT PARTSLARSCO INC 1,133.28 124.82-SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIESLARSON, JH CO 31.85PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 10 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 10Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 1,226.97REC CENTER BUILDING GENERAL SUPPLIES 1,134.00 239.58INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESLENTNER, LAURA 239.58 149.95PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIESLOEFFLER SHOES 70.00SEWER UTILITY G&A OPERATIONAL SUPPLIES 219.95 5,280.00TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTLOGIS 5,280.00 208.68ORGANIZED REC G & A MILEAGE-PERSONAL CARLOMBARDI, JIM 208.68 75.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESLUKE, CHRIS 75.00 183.00GENERAL REPAIR EQUIPMENT MTCE SERVICEMAACO AUTO PAINTING 183.00 141.13INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESMACGREGOR-HANNAH, MAREN 141.13 511.88WATER UTILITY G&A BUILDING MTCE SERVICEMANAGED SERVICES INC 511.88 292.31PUBLIC WORKS OPS G & A OFFICE SUPPLIESMARS CO, W P & R S 292.31 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESMCMONIGAL ARCHITECTS LLC 225.00 70.00CONCESSIONSSUBSCRIPTIONS/MEMBERSHIPSMDH 70.00 36.29PARK MAINTENANCE G & A GENERAL SUPPLIESMENARDS 15.65WESTWOOD G & A GENERAL SUPPLIES 32.63PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 10.55WATER UTILITY G&A EQUIPMENT PARTS 95.12 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 11 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 11Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 35.40OPERATIONSGENERAL SUPPLIESMID-CITY PRECISION INC 35.40 30,414.36PARK AND RECREATION BALANCE SH INVENTORYMIDWAY FORD 30,414.36 91.77STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEMIDWEST ASPHALT CORP 91.77 835.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESMIDWEST TESTING LLC 835.00 152.12EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA BENEFIT ASSOC 152.12 117.46POLICE G & A OPERATIONAL SUPPLIESMINNESOTA CHIEFS POLICE ASSOC 117.46 21,558.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESMINNESOTA DEPT HEALTH 21,558.00 147.13-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSMINNESOTA NATIVE LANDSCAPES 2,287.13BEAUTIFICATION / FLOWERS OTHER CONTRACTUAL SERVICES 2,140.00 16.00EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA NCPERS LIFE INS 16.00 418.79OUTREACHOTHER IMPROVEMENT SUPPLIESMINNESOTA TROPHIES & GIFTS 418.79 4.67PATCHING-PERMANENT EQUIPMENT PARTSNAPA (GENUINE PARTS CO) 654.74PARK AND RECREATION BALANCE SH INVENTORY 101.30ARENA MAINTENANCE EQUIPMENT PARTS 528.31GENERAL REPAIR GENERAL SUPPLIES 76.43WATER UTILITY G&A EQUIPMENT PARTS 1,365.45 598.50BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALSNATIVE PLANT NURSERY INC 598.50 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 12 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 12Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 48.62OPERATIONSGENERAL SUPPLIESNELSON, MARK 48.62 114.80ADMINISTRATION G & A TELEPHONENEXTEL COMMUNICATIONS 149.15HUMAN RESOURCES TELEPHONE 556.15RESEARCH & DEVELOPMENT TELEPHONE 97.52ASSESSING G & A TELEPHONE 149.36FINANCE G & A TELEPHONE 348.91EDA / HA REIMBURSEMENT TELEPHONE 642.74POLICE G & A TELEPHONE 392.37OPERATIONSTELEPHONE 97.73INSPECTIONS G & A TELEPHONE 415.13ENGINEERING G & A TELEPHONE 478.85PUBLIC WORKS OPS G & A TELEPHONE 198.53PARK AND REC G&A TELEPHONE 198.10ORGANIZED REC G & A TELEPHONE 328.40PARK MAINTENANCE G & A TELEPHONE 97.66ENVIRONMENTAL G & A TELEPHONE 120.75WESTWOOD G & A TELEPHONE 46.53REC CENTER/AQUATIC PARK SAL TELEPHONE 151.95VEHICLE MAINTENANCE G&A TELEPHONE 395.13WATER UTILITY G&A TELEPHONE 201.19SEWER UTILITY G&A TELEPHONE 64.10SOLID WASTE G&A TELEPHONE 3,082.33TECHNOLOGY REPLACEMENT TELEPHONE 8,327.38 31.28WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESNORTHERN AIRE SWIMMING POOLS 31.28 52.48PARK AND RECREATION BALANCE SH INVENTORYNUSS TRUCK & EQUIPMENT 52.48 64.80INSPECTIONS G & A ELECTRICALOBARSKI, JOHN & CASSANDRA 64.80 34.22INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESOBERSTAR, KATIE 34.22 64.22ADMINISTRATION G & A OFFICE SUPPLIESOFFICE DEPOT 293.09ADMINISTRATION G & A GENERAL SUPPLIES 285.25POLICE G & A OFFICE SUPPLIES City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 13 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 13Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 16.83INSPECTIONS G & A GENERAL SUPPLIES 135.31PUBLIC WORKS G & A OFFICE SUPPLIES 494.32ORGANIZED REC G & A OFFICE SUPPLIES 1,289.02 1,595.25INSPECTIONS G & A GENERAL PROFESSIONAL SERVICESOFFICE TEAM 1,595.25 580.02PORTABLE TOILETS/FIELD MAINT OTHER CONTRACTUAL SERVICESON SITE SANITATION 580.02 172.10EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICESOPTUM HEALTH FINANCIAL SERVICE 172.10 45.79INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESPAPP, MELISSA 45.79 1,324.85ESCROWSPARK NICOLLET TRAFFIC STUDYPARK NICOLLET 52,479.65ESCROWSPARK NICOLLET TRAFFIC EAU 53,804.50 400.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESPARK THEATER COMPANY 400.00 96.90INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESPARR, MELISSA 96.90 1,000.00ESCROWSPMC ESCROWPATRIOT BUSINESS GROUP 1,000.00 32.00YOUTH PROGRAMS PROGRAM REVENUEPEACOCK, MICHELE 32.00 471.88COMM & MARKETING G & A PRINTING & PUBLISHINGPERNSTEINER CREATIVE GROUP INC 471.88 8.88POLICE G & A OPERATIONAL SUPPLIESPETTY CASH 16.20POLICE G & A TRAINING 21.00POLICE G & A TRAVEL/MEETINGS 21.50DWI ENFORCEMENT LICENSES 67.58 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 14 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 14Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 337.71PARK GROUNDS MAINTENANCE OTHER CONTRACTUAL SERVICESPHILIP'S TREE CARE INC 352.31WEED CONTROL OTHER CONTRACTUAL SERVICES 614.58WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 1,304.60 607.20INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESPOLK, MARLA 607.20 190.00SUPPORT SERVICES G&A POSTAGEPOSTMASTER 190.00 3,685.05TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICEPRECISION LANDSCAPE & TREE 2,778.75PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 6,463.80 731.50DIAL-A-RIDE PROGRAM OTHER CONTRACTUAL SERVICESPRISM EXPRESS MANAGER 731.50 393.66REC CENTER BUILDING EQUIPMENT MTCE SERVICEPROFESSIONAL BEVERAGE SYSTEMS 393.66 144.28WATER UTILITY G&A OTHER IMPROVEMENT SERVICEQ3 CONTRACTING 144.28 26.90VEHICLE MAINTENANCE G&A POSTAGEQUICKSILVER EXPRESS COURIER 26.90 2,543.64FACILITY OPERATIONS GARBAGE/REFUSE SERVICERANDY'S SANITATION INC 1,093.02REC CENTER BUILDING GARBAGE/REFUSE SERVICE 996.30SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 4,632.96 52.44POLICE G & A OFFICE SUPPLIESREGENCY OFFICE PRODUCTS LLC 52.44 110.50WATER UTILITY G&A GENERAL CUSTOMERSREMAX 110.50 3,002.34IT G & A EQUIPMENT MTCE SERVICERICOH USA INC 635.22-GO BONDS-FIRE STATIONS BAL S DUE TO OTHER GOVTS 9,874.81GO BONDS-FIRE STATIONS G&A IMPROVEMENTS OTHER THAN BUILDI 12,241.93 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 15 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 15Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 874.43-PARK IMPROVE BALANCE SHEET DUE TO OTHER GOVTSRIEDELL SKATES 13,593.43PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 12,719.00 382.50SOFTBALLOTHER CONTRACTUAL SERVICESRITCHIE, TAYLOR 382.50 58.18WATER UTILITY G&A GENERAL CUSTOMERSROCHOTTE, MARTHA 58.18 900.00HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENTROG, MARGARET 900.00 32.52WATER UTILITY G&A GENERAL CUSTOMERSRYAN, SHAWN 32.52 328.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESSANDUM, KATHERINE 328.00 110.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESSAURER, MARTI 110.00 382.77REC CENTER BUILDING GENERAL SUPPLIESSAVITT BROS INC 382.77 209.95INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESSCHMIDT, KELLIE 209.95 1,521.86EMPLOYEE FLEXIBLE SPENDING B/S TUITIONSCHNEIDER, JENNIFER 1,521.86 796.23SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICESSEH 796.23 447.24GRAFFITI CONTROL OTHER IMPROVEMENT SUPPLIESSHERWIN-WILLIAMS CO 44.91SPLASH PAD MAINT - Oak Hill Pk GENERAL SUPPLIES 492.15 199.17WATER UTILITY G&A GENERAL CUSTOMERSSIMONDET, MATTHEW 199.17 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 16 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 16Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 47.00SEASON PASSES PROGRAM REVENUESKARP, MIKE 47.00 156.55NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESSKELLY, GABRIEL 156.55 3,000.00ESCROWSPMC ESCROWSPJ PROPERTIES 3,000.00 159.48WATER UTILITY G&A GENERAL CUSTOMERSSPONSEL, MARK 159.48 1,755.10IT G & A DATACOMMUNICATIONSSPRINT 1,755.10 1,462.89PE DESIGN IMPROVEMENTS OTHER THAN BUILDISRF CONSULTING GROUP INC 1,462.89 53,437.10CONVENTION & VISITORS BUREAU COST REIMBURSEMENT-VISIONST LOUIS PARK CONV & VISITORS 53,437.10 100.00COMM DEV PLANNING G & A SUBSCRIPTIONS/MEMBERSHIPSST LOUIS PARK SUNRISE ROTARY 100.00 145.60ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSSTAR TRIBUNE 145.60 8.24OPERATIONSOFFICE SUPPLIESSTEMMER, LUKE 11.19OPERATIONSGENERAL SUPPLIES 19.43 243.48PARK AND RECREATION BALANCE SH INVENTORYSTREICHER'S 288.11VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 531.59 278.69ADMINISTRATION G & A LEGAL NOTICESSUN NEWSPAPERS 278.69 1,641.63GO BONDS-FIRE STATIONS G&A IMPROVEMENTS OTHER THAN BUILDISUNDBERG CO, CE 1,641.63 612.15GO BONDS-FIRE STATIONS G&A LANDSUNDE LAND SURVEYING LLC City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 17 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 17Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 612.15 508.70SUMMER PLAYGROUNDS OPERATIONAL SUPPLIESTAHO SPORTSWEAR 109.44T-BALL/BASEBALL OPERATIONAL SUPPLIES 218.73WESTWOOD G & A OPERATIONAL SUPPLIES 363.64JUNIOR NATURALISTS OPERATIONAL SUPPLIES 322.12LIFEGUARDINGOPERATIONAL SUPPLIES 247.51POOL MONITORS OPERATIONAL SUPPLIES 280.72CONCESSIONSOPERATIONAL SUPPLIES 2,050.86 13.22POLICE G & A OPERATIONAL SUPPLIESTARGET BANK 39.34DARE PROGRAM OPERATIONAL SUPPLIES 6.78WESTWOOD G & A GENERAL SUPPLIES 59.34 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESTEA2 225.00 15.48ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTELELANGUAGE INC 15.48 6.67-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSTERMINIX INT 103.67BUILDING MAINTENANCE BUILDING MTCE SERVICE 97.00 7.00OPERATIONSGENERAL SUPPLIESTEXA TONKA TAILORING 7.00 153.00SOFTBALLOTHER CONTRACTUAL SERVICESTHOMPSON, JAMES 153.00 597.50ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTIMESAVER OFF SITE SECRETARIAL 597.50 255.00SOFTBALLOTHER CONTRACTUAL SERVICESTRAUTMANN, JOHN 255.00 45.00ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTATTWIN WEST CHAMBER OF COMMERCE 45.00 2,857.99ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEUHL CO INC City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 18 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 18Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 2,857.99 150.00EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSUNITED STATES TREASURY 150.00 240.00EMPLOYEE FLEXIBLE SPENDING B/S UNITED WAYUNITED WAY OF MINNEAPOLIS AREA 240.00 9.84WATER UTILITY G&A TELEPHONEUSA MOBILITY WIRELESS INC 9.84 8.59-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSUSI EDUCATION & GOVERNMENT SAL 133.58ORGANIZED REC G & A OFFICE SUPPLIES 124.99 357.90HUMAN RESOURCES RECOGNITIONVAIL, LORI 357.90 158.89WATER UTILITY G&A GENERAL CUSTOMERSVALLERA, DANIEL 158.89 1,247.61VOICE SYSTEM MTCE TELEPHONEVERIZON WIRELESS 74.22COMMUNICATIONS/GV REIMBURSEABL TELEPHONE 567.68TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 1,889.51 150.00SOFTBALLOTHER CONTRACTUAL SERVICESVICE, GARY 150.00 75.00NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESVICKERMAN, MARGE 75.00 137.74PARK MAINTENANCE G & A GENERAL SUPPLIESVIKING ELECTRIC SUPPLY 137.74 517.15WATER UTILITY G&A EQUIPMENT MTCE SERVICEWEBER ELECTRIC 517.15 4,260.96AQUATIC PARK MAINTENANCE GENERAL SUPPLIESWEST MARINE 4,260.96 1,000.00ESCROWSDEMO / BROOKSIDE TRAFFICWILSON, ANNETTA City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 19 6/13/2012CITY OF ST LOUIS PARK 6:33:09R55CKSUM LOG23000VO 19Page -Council Check Summary 6/8/2012 -5/26/2012 Vendor AmountBusiness Unit Object 1,000.00 491.56POLICE G & A TRAININGWINCKLER, ERIC 400.00POLICE G & A SEMINARS/CONFERENCES/PRESENTAT 891.56 149.11OPERATIONSGENERAL SUPPLIESWIPERS & WIPES INC 149.11 161.68ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEWOLNEY ELECTRIC LLC 161.68 13.57WATER UTILITY G&A GENERAL CUSTOMERSWORRELL, CLAUDE 13.57 12,028.52ENTERPRISE G & A ELECTRIC SERVICEXCEL ENERGY 12,028.52 2,500.00ESCROWSDEMO / BROOKSIDE TRAFFICYAVNER, DANIEL 2,500.00 170.85WESTWOOD G & A GENERAL SUPPLIESZEE MEDICAL SERVICE 170.85 23.39WATER UTILITY G&A GENERAL CUSTOMERSZELKO, SANDY 23.39 Report Totals 512,710.07 City Council Meeting of June 18, 2012 (Item No. 4i) Subject: Vendor Claims Page 20 Meeting Date: June 18, 2012 Agenda Item #: 4j MINUTES St. Louis Park Housing Authority Westwood Room, St. Louis Park City Hall St. Louis Park, MN Monday, April 9, 2012 6:30 P.M. MEMBERS PRESENT: Commissioners Catherine Courtney, Renee DuFour, Justin Kaufman Commissioner Suzanne Metzger arrived at 6:32 p.m. STAFF PRESENT: Jane Klesk, Kathy Larsen, Kevin Locke, Michele Schnitker 1. Call to Order – The meeting was called to order at 6:30 p.m. 2. Approval of Minutes for March, 2012 The Board minutes of March 14, 2012 were unanimously approved. 3. Hearings – None 4. Reports and Committees – None 5. Unfinished Business – None 6. New Business a. Approval of Development Agreement for Cedar Lake Excess Land Parcel Ms. Larsen reviewed the purchase agreement and development contract for the sale of excess land at 9019 Cedar Lake Road, St. Louis Park. In October 2011, Robert Eldridge expressed an interest in purchasing a portion of 9019 Cedar Lake Road. Staff let the parcel for bid and no bids were received. Commissioner Kaufman moved to approve the execution of the Vacant Land Purchase Agreement with A.K.A.R.E. Companies, Inc. for purchase of 9019 Cedar Lake Road, in the amount of $76,000, and the accompanying Contract for Private Development of 9019 Cedar Lake Road, between the HA and A.K.A.R.E. Companies, Inc. Commissioner DuFour seconded the motion and the motion passed 4-0. b. Approval of Community Energy Services Program (CES) with Center for Energy and Environment (CEE) Ms. Larsen explained that in March, 2012 Council had adopted a resolution supporting the Community Energy Services Program, a comprehensive, one-stop residential energy program designed to help residents save energy. Commissioner Kaufman moved to approve the Master Consulting Agreement with Work Orders, between the HA and CEE for the term April 9 through December 31, 2012, subject to deletion of Clause 7., Liability and Indemnification. Commissioner DuFour seconded the motion, and the motion passed 4-0. City Council Meeting of June 18, 2012 (Item No. 4j) Page 2 Subject: Housing Authority Minutes April 9, 2012 c. Project Based Housing Choice Voucher Program, Wayside House, Inc. – Update Ms. Schnitker reported that the meeting with Wayside House, Inc. to review the status of the contract between the HA And Wayside for 15 units of project-based Housing Choice vouchers (PBA) at Wayside’s supportive housing project had gone well. Staff will return to the Board at a future meeting to discuss the September, 2012 renewal of the contract to continue to provide PBA at Wayside, as well as further discussion on policy issues related to ongoing program administration. d. 2011 Housing Authority Annual Report to City Council Ms. Schnitker explained that the purposed of the report is informative, and no action is required of the Board. The HA Annual Report and 2012 Work Plan have been provided to Council in preparation for the April 9th Study Session meeting with the HA Board. e. Review of City Housing Goals: Report to City Council Ms. Schnitker stated the report is informative only, and no action is required of the Board. 7. Communications from Executive Director a. Claims List – April, 2012 The April Claims List was tabled until the May Board meeting. b. Communications 1. Monthly Report – April, 2012 2. Draft Financial Statements 8. Other 9. Adjournment Commissioner Kaufman moved to adjourn the meeting, and Commissioner DuFour seconded the motion. The motion passed 4-0. The meeting adjourned at 7:08 p.m. Respectfully submitted, _____________________ Renee DuFour, Secretary Meeting Date: June 18, 2012 Agenda Item #: 8a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Project Report: Traffic Signal Project - Park Center Boulevard at Park Summit - Project #2012-1306 RECOMMENDED ACTION: Motion to Adopt Resolution accepting the project report, establishing Improvement Project No. 2012-1306, approving plans and specifications and authorizing advertisement for bids for Improvement Project No. 2012-1306. POICY CONSIDERATION: Does Council desire to move forward with this project as identified in the City’s Capital Improvement Program (C.I.P.)? BACKGROUND: History A traffic study was completed in the spring of 2011 as part of the review and approval process for the Park Summit redevelopment in the southeast corner of Park Center Boulevard and 36th Street. The recommendation of the traffic study was to consolidate the access of the Park Summit Redevelopment site, the access to Parkshore Assisted Living and the two accesses to the Target store into one signalized intersection. Park Summit redevelopment entered into a PUD Development Contract with the City on October 21, 2011 for the work necessary to consolidate access and to fund 50 percent of the costs to install a traffic signal. The City completed a mill and overlay of Park Center Boulevard in 2011 from Excelsior Boulevard to approximately 600 feet south of 36th Street in anticipation of the Park Summit redevelopment and a new traffic signal at the consolidated access point planned for 2012. The City held off on paving and rehabilitation work at this location until the signal and access changes were known and designed. As a result, the City will be participating in a portion of the project costs, such as paving and curb work within the public right of way. The Park Summit redevelopment is well underway and is expected to begin occupying the building in the spring of 2013. In addition, staff has been working with Target Corporation to consolidate the two accesses to their site on the southwest corner of Park Center Boulevard and 36th Street at the proposed signal. The City has reached a tentative agreement with Target Corporation for the remaining 50 percent cost share of the signal installation and subsequent costs associated with the intersection relocation. This agreement is currently being executed by Target and Council approval will be requested at the July 16th Council meeting. 2012 Proposed Project This work involves the mill and overlay of the northerly 600 feet of Park Center Boulevard, construction and re-alignment of driveways, median modification and the installation of a new traffic signal on Park Center Boulevard at a location approximately 400 feet south of 36th Street. City Council Meeting of June 18, 2012 (Item No. 8a) Page 2 Subject: Project Report: Traffic Signal Project - Park Center Blvd at Park Summit - Project 2012-1306 The intersection will have pedestrian activated cross walk signals and count down timers. The trail that accesses Wolfe Park will be reconfigured to utilize this signalized crossing. The center median will be landscaped similar to the other islands along Park Center Boulevard and will be maintained as part of the service district. Project Timeline: Should the City Council approve this Project, the following schedule is proposed: • Approval of Plans/Authorization to Bid by City Council June 18, 2012 • Advertise for bids Late June, 2012 • Bid Opening July 9, 2012 • Approval of Target Agreement by City Council July 16, 2012 • Bid Tab Report to City Council; Award contract July 16, 2012 • Begin Construction Late July, 2012 • Construction substantially complete Early November 2012 Summary and Recommendations The City Attorney has reviewed the Public Improvement Agreement with Target Corporation and does not have any issues with the agreement language. The agreement is being executed by Target and staff intends to present the signed agreement for Council approval as a part of the Bid Tabulation report at the July 16, 2012 Council meeting. FINANCIAL OR BUDGET CONSIDERATION: This project was agreed to and approved by the City Council in conjunction with their approvals for the Park Summit redevelopment project with an estimated budget of $600,000. Project funding will be provided by three sources, the City of St. Louis Park Municipal State Aid funds, Target Corporation and Park Summit. The Engineer’s estimate for the total cost of the project is $634,500 which includes engineering & administration costs. Approximately $30,000 is for construction to Target’s parking lot which is impacted by the intersection relocation. Target has requested that this work and associated costs be included as part of their Public Improvement Agreement and wrapped into Target’s cost obligations accordingly. Cost and funding details are as follows: Estimated Costs Construction Cost $ 517,500 Engineering & Administration $ 117,000 Total $ 634,500 Funding Sources Municipal State Aid Funds $ 258,500 Target Corporation $ 199,500 Park Summit $ 176,500 Total $ 634,500 City Council Meeting of June 18, 2012 (Item No. 8a) Page 3 Subject: Project Report: Traffic Signal Project - Park Center Blvd at Park Summit - Project 2012-1306 VISION CONSIDERATION: Not applicable. Attachments: Resolution Access Consolidation Layout Prepared by: Jack Sullivan, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 8a) Page 4 Subject: Project Report: Traffic Signal Project - Park Center Blvd at Park Summit - Project 2012-1306 RESOLUTION NO. 12-___ RESOLUTION ACCEPTING THE PROJECT REPORT, ESTABLISHING IMPROVEMENT PROJECT NO. 2012-1306, APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR IMPROVEMENT PROJECT NO. 2012-1306 WHEREAS, the City Council of the City of St. Louis Park has received a report from the City Engineer related to Project 2012-1306. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that: 1. The Project Report regarding Project No. 2012-1306 is hereby accepted. 2. Such improvements as proposed are necessary, cost effective, and feasible as detailed in the Project Report. 3. The proposed project, designated as Project No. 2012-1306 is hereby established and ordered. 4. The plans and specifications for the making of these improvements, as prepared under the direction of the City Engineer, or designee, are approved. 5. The City Clerk shall prepare and cause to be inserted at least two weeks in the official City newspaper an advertisement for bids for the making of said improvements under said-approved plans and specifications. The advertisement shall appear not less than ten (10) days prior to the date and time bids will be received by the City Clerk, and that no bids will be considered unless sealed and filed with the City Clerk and accompanied by a bid bond payable to the City for five (5) percent of the amount of the bid. 6. The City Engineer, or designee, shall report the receipt of bids to the City Council shortly after the letting date. The report shall include a tabulation of the bid results and a recommendation to the City Council. Reviewed for Administration: Adopted by the City Council June 18, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of June 18, 2012 (Item No. 8a) Subject: Project Report: Traffic Signal Project - Park Center Blvd at Park Summit - Project 2012-1306Page 5 Meeting Date: June 18, 2012 Agenda Item #: 8b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Constitutional Amendment – Photo Identification for Voting RECOMMENDED ACTION: Motion to Adopt Resolution opposing the proposed “Photo Identification Required for Voting” Constitutional Amendment. POLICY CONSIDERATION: Does the City Council wish to adopt the attached resolution in opposition to the proposed Constitutional Amendment that will be on the ballot November 6, 2012 relating to photo identification for voting? BACKGROUND: On May 29, 2012, Council discussed the proposed constitutional amendment that the Minnesota State Legislature voted to include on the election ballot in November 2012 as stated by the following question: “Shall the Minnesota Constitution be amended to require all voters to present valid photo identification to vote and to require the state to provide free identification to eligible voters, effective July 1, 2013?” If the amendment is adopted by the voters, the following language would be added to Article VII, Section 1 of the Minnesota Constitution: “(b) All voters voting in person must present valid government-issued photographic identification before receiving a ballot. The state must issue photographic identification at no charge to an eligible voter who does not have a form of identification meeting the requirements of this section. A voter unable to present government-issued photographic identification must be permitted to submit a provisional ballot. A provisional ballot must only be counted if the voter certifies the provisional ballot in the manner provided by law. (c) All voters, including those not voting in person, must be subject to substantially equivalent identity and eligibility verification prior to a ballot being cast or counted.” At the May 29 Study Session, the Council came to consensus to adopt a resolution opposing the proposed constitutional amendment. The resolution attached was prepared by staff and reviewed by Councilmember Sanger. What are the implications to St. Louis Park if the amendment is adopted? • Would affect the St. Louis Park November 2013 municipal/school election • If a 2013 Primary is required, there will be different voting procedures in the same year. • Would require additional administration before, during, and after election day • Would require provisional balloting in the polling place and clerk’s office after election day • Election Day registration would be changed or eliminated City Council Meeting of June 18, 2012 (Item No. 8b) Page 2 Subject: Constitutional Amendment – Photo Identification for Voting • Could affect many of our approx. 6,000 voters who typically register to vote at the polls for a Presidential Election who would need to vote by provisional ballot, and make a second trip after the election to present acceptable ID at city hall • Could affect approx. 4,500 absentee voters who typically vote at a Presidential Election • Could affect approx. 300 absentee voters from our 5 Healthcare Facilities who are vouched for by facility employees as allowed by current law • Final Election Results will be delayed 3-14 days FINANCIAL OR BUDGET CONSIDERATION: If the constitutional amendment is approved, it would cost the city an estimate of $11,000 to cover the 2013 startup costs related provisional balloting for the city elections next year; and approximately $5,180 each year thereafter as follows: 16+ secure provisional Ballot Box containers, 1-2 per precinct (2013 startup cost) 16 locks or other security for locked ballot box containers (2013 startup cost) Additional judge training (2013 startup cost) Two additional election judges per precinct at all general elections every year Additional election judges for days following all elections every year to verify photo IDs of provisional ballot voters and counting of ballots Special Provisional Ballot Printing and envelopes at all elections every year VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 8b) Page 3 Subject: Constitutional Amendment – Photo Identification for Voting RESOLUTION NO. 12-____ RESOLUTION IN OPPOSITION TO PROPOSED “PHOTO IDENTIFICATION REQUIRED FOR VOTING” CONSTITUTIONAL AMENDMENT WHEREAS, the 2012 Minnesota State Legislature voted to include the following question on the election ballot at the 2012 General Election: “Shall the Minnesota Constitution be amended to require all voters to present valid photo identification to vote and to require the state to provide free identification to eligible voters, effective July 1, 2013?”; and WHEREAS, the proposed constitutional amendment would deny the right to vote to any eligible voter who is not able to provide a mandated government-issued document; and WHEREAS, the proposed constitutional amendment will end Minnesota’s same-day voter registration as we know it, replacing it with provisional voting, which will require voters without a qualified ID to cast a provisional ballot to be counted only if the voter goes to the local elections office within a few days after the election and shows a qualifying ID; and WHEREAS, this requirement will delay the reporting of election results and risks the potential of contested election results if as many provisional ballots go uncounted as in other states; and WHEREAS, requiring photo identification and provisional voting adds unnecessary complexity to voting and delays in the polling place at a higher cost to taxpayers; and WHEREAS, this requirement will also negatively impact the voters registering at the polls on the Election Day, and those voting by absentee ballot including military and overseas voters; and WHEREAS, the State of Minnesota is widely acknowledged to have one of the best election systems in the United States, and there has been no evidence of voter impersonation, which is the only type of voter fraud prevented by a photo identification requirement; and WHEREAS, the high level of accuracy and integrity of the election system in Minnesota has been confirmed by statewide recounts in 2008 and 2010; and WHEREAS, this proposed amendment will cost millions of taxpayer dollars to implement and operate, including the start-up and ongoing costs to local governments of the new provisional voting system, the cost of producing and issuing free voter ID cards, voter education about the new voting system, among other expenses, and these new costs will fall largely on local and county taxpayers, resulting in higher property taxes or the elimination of other services; and WHEREAS, it is the position of the City Council that the Constitution of the State of Minnesota does not exist to codify discrimination and exclusion, but instead to protect individual rights and encourage voter engagement and participation; and City Council Meeting of June 18, 2012 (Item No. 8b) Page 4 Subject: Constitutional Amendment – Photo Identification for Voting WHEREAS, it is the position of the City Council that the voter identification requirement would disproportionately impact the absentee voters from the City of St. Louis Park’s five healthcare facilities who are vouched for by facility employees as allowed by current law; NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis Park, that the City of St. Louis Park joins with the coalition of organizations that oppose the proposed constitutional amendment to restrict the voting rights of Minnesotans by mandating government issued documents as a condition for voting; AND BE IT FURTHER RESOLVED that the City Council of the City of St. Louis Park urges Minnesota voters to vote “no” on the proposed constitutional amendment at the Tuesday, November 6, 2012 state general election. Reviewed for Administration Adopted by the City Council June 18, 2012 City Manager Mayor Attest: City Clerk Meeting Date: June 18, 2012 Agenda Item #: 8c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Wildlife Feeding Ordinance Amendment - 1st Reading RECOMMENDED ACTION: Motion to Adopt First Reading of an Ordinance to approve Changes to Chapter 4 and Chapter 12 of the City Code relating to the feeding of wildlife and to set Second Reading for July 16, 2012. POLICY CONSIDERATION: Should the City Council amend the ordinances relative to the feeding of wild animals? BACKGROUND: Chapter 4, Section 4-44 of the City’s Code covers the prohibition of feeding deer, raccoon and Canada geese. Chapter 12, Section 12-34 (14) of the code covers the prohibition of feeding deer and raccoon only, with language pertaining to types of prohibited and accepted feeding. The proposed changes affect both sections of both chapters. The proposed changes are as follows: • Combine ordinances into one section. This will assist in clarity and enforcement. Section 4-44 will be titled “Feeding of Wild Animals” versus “Deer and Raccoon”; Section 12-34 (14) will refer to Section 4-44. • Add coyotes, wild turkeys and opossum to the list of prohibited animals to feed, Section 4-44 (a). Under the current ordinances/sections, the feeding of coyote, wild turkey and opossum is allowed. Wild turkey, coyotes and potentially opossum, due to easy, desirable and available food stock, are approaching/feeding on various properties within St. Louis Park. The concentrated presence of these animals causes alarm and creates habituation of these animals in residential yards and of people. It’s beneficial for people and the animals for them to remain wild and afraid of humans. With the increased numbers of wild turkey and coyotes present in St. Louis Park the addition of these two animals to the feeding ban is necessary. • Add specification of the method in which food can be offered, Section 4-44 (b). The proposed change is to make the feeding of allowed animals, such as birds, ducks and squirrels, acceptable but defines the method to feed them (a feeder/feeding apparatus that has to be 5’ off the ground and screened, if necessary) to prevent undesirable (primarily deer and wild turkey) animal feeding. Currently, there is no specified height limit and various food items may be set anywhere which promotes high animal concentrations causing concentrated fecal matter, attraction of undesirable animals to a site and, inability to control the site through enforcement. • Add specification for the type of food allowed and prohibited, Section 4-44 (b). The proposed ordinance clearly defines what food material is acceptable and what food material is not. The current ordinance references “edible liquids and material” which is left to interpretation, which means any food material can be left out for any animal, making enforcement challenging. City Council Meeting of June 18, 2012 (Item No. 8c) Page 2 Subject: Wildlife Feeding Ordinance Amendment - 1st Reading • Change effective enforcement of the feeding ban, Section 4-44 (d). Enforcement is currently difficult since the manner in which the food is offered and specific food items presented on site are not clearly defined. Under the current scenario any food item for feeding desirable animals, such as birds, is acceptable. This situation creates an attraction for deer, coyote, Canada geese, wild turkey and potentially opossum, to congregate at these feeding sites. • Add bee colony as a prohibited animal Section 4-42 (8). Proposed to clarify that bee keeping is not permitted. Staff has occasionally received inquiries from residents interested in placing bee hives in their yards. Additionally, a resident has expressed concerns over being stung due to the high number of bees traveling from a neighbors backyard bee hive. Relatively narrow residential lots make safe hive placement impractical in the city. Without sufficient room for the bees to disperse when leaving or returning to the hive, interaction with neighbors on adjacent properties is significantly increased. The proposed amendment will still allow bee hives to be kept at educational facilities like Westwood Nature Center through the exemptions in section 4-45 (being renumbered to 4-44). Councilmember Sanger asked if the ordinance could be changed so that we could identify which animals could be fed rather than the ones that cannot be fed. Staff discussed that approach with City Attorney, Tom Scott. Mr. Scott thinks it would be difficult to have an inclusive list of all animals that may feed at a site. He believes it would be much easier to enforce the ordinance with a limited number of banned animals listed and change the ordinance if another nuisance animal appears in the future. Staff has anticipated that opossum may be the next urban wildlife problem and has added it to the list of animals that cannot be fed. FINANCIAL OR BUDGET CONSIDERATION: There is no cost to the city to expand the list of wildlife prohibited from feeding in St. Louis Park or to refine the wild animal feeding ban. Staff does not anticipate a large number of property owners to be affected by the proposed changes to these ordinances. Clearly defined parameters in the proposed ordinances on what can be fed, as well as how one can properly feed desirable animals, such as birds, water fowl and squirrels will reduce staff time spent pursuing violators. VISION CONSIDERATION: This ordinance is consistent with our second strategic direction; “St. Louis Park is committed to being a leader in environmental stewardship”. We will increase environmental consciousness and responsibility in all areas of city business. Attachments: Amended Ordinance Prepared by: Stacy Voelker, Administrative Secretary Jim Vaughan, Environmental Coordinator Reviewed by: Cindy Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 8c) Page 3 Subject: Wildlife Feeding Ordinance Amendment - 1st Reading ORDINANCE NO. ____-12 CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA AN ORDINANCE RELATING TO THE KEEPING AND FEEDING OF WILD ANIMALS, AMENDING SECTIONS 4-41 TO 4-45 AND SECTION 12-34 OF THE ST. LOUIS PARK CODE THE CITY OF ST. LOUIS PARK DOES ORDAIN: SECTION 1. Sections 4-41 to 4-44 of the City Code are hereby amended as follows: Sec. 4-41. Purpose of article. The purpose of this article is to protect the public health from disease transmission, animal bites and public nuisances arising from the keeping or escape of non-domesticated animals. (Code 1976, § 11-314) Sec. 4-42. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Nondomesticated animal means any wild animal, reptile, or fowl, or bee which is not naturally tame or gentle, but is of a wild nature or disposition and which, because of its size, vicious nature or other characteristics, would constitute a danger to human life or property. (Code 1976, § 11-315) Cross reference(s)--Definitions generally, § 1-2.Sec. 4-43. Sec. 4-4342. Prohibited animals. No person shall keep, maintain or harbor within the city the following animals: (1) Animal or species prohibited by state or federal law. (2) Any nondomesticated animal or species including, but not limited to, the following:a. Any skunk, whether captured in the wild, domestically raised, descented or not descented, vaccinated against rabies or not vaccinated against rabies. b.(3) Any large cat of the family Felidae such as lions, tigers, jaguars, leopards, bobcats, lynx, cougars and ocelots, except commonly accepted domesticated house cats. City Council Meeting of June 18, 2012 (Item No. 8c) Page 4 Subject: Wildlife Feeding Ordinance Amendment - 1st Reading c.(4) Any member of the family Canidae, such as wolves, fox, coyote, dingoes and jackals, except domesticated dogs. d.(5) Any hybrids such as wolf/dog and coyote/dog hybrids, but not including crossbred domesticated animals. e.(6) Venomous snakes of the Family Viperidae, such as adders, gabon vipers and pit vipers, venomous snakes of the Family Elapidae, such as cobras, coral snakes and sea snakes, three snakes of the Family Colubridae, the African twig snake (Thelotornis kirtland), the rear fanged boomslang (Disphoiidus typus) and the Asian tiger snake (Rhabdophis forinus); whether captured in the wild or domestically raised, defanged or not defanged, devenomed or not devenomed. f.(7) Any raccoon. g.(8) Any bee colony. h.(9) Any other animal which is not listed explicitly in subsections (2)a.—(2)f.(1) to (8) of this section, but which can be reasonably defined by the terms in section 4-42, including bears, badgers, ostriches, llamas, alligators and crocodiles.is not naturally tame or gentle, but is of a wild nature or disposition and which, because of its size, vicious nature or other characteristics, would constitute a danger to human life or property. Sec. 4-44. Deer and raccoon. Feeding deer, raccoon or Canada Goose is prohibited and declared a nuisance. persons feeding deer, raccoon or Canada Goose shall be guilty of a misdemeanor. (Code 1976 § 11-313, Ord. No. 2270-04, 5-17-04) Sec. 4-43. Feeding of Wild Animals. (a) No person shall feed deer, raccoons, wild turkeys, coyotes, opossum, Canada goose or any prohibited animal identified in Section 4-42 within the boundaries of the city. (b) No person shall place or permit to be placed on the ground, or within five feet (5’) of the ground surface any grain, fodder, salt licks, fruit, vegetables, nuts, hay or other edible materials (including feed for birds), which may reasonably be expect to result in deer, raccoon, wild turkey, coyote or Canada goose feeding, unless such items are screened or protected in a manner that prevents such feeding. The presence of living fruit trees and other live vegetation shall not be considered feeding. (c) The prohibitions in this section shall not apply to: City Council Meeting of June 18, 2012 (Item No. 8c) Page 5 Subject: Wildlife Feeding Ordinance Amendment - 1st Reading (1) Veterinarians, city animal control officers or county, state or federal game officials who are in the course of their duties, have deer, raccoon, coyote, wild turkey or Canada goose in custody or under their management; (2) Persons authorized by the City of St. Louis Park to implement the Deer Management Program approved by the City Council; and (3) Any food placed upon the property for purposes of trapping or otherwise taking deer where such trapping or taking is pursuant to a permit issued by the Minnesota Department of Natural Resources. (d) In addition to being a violation subject to the general penalty provisions of the City Code, a violation of this section is declared to be a nuisance affecting public peace and safety subject to the abatement and assessment provisions of Section 12-35 of the City Code. SECTION 2. Section 4.45 of the City Code is renumbered to Section 4.44. SECTION 3. Section 12-34(14) of the City Code is hereby amended to read in its entirety as follows: (14) No person shall feed deer or raccoons within the boundaries of the city. Feeding shall include, but not be limited to, providing liquids or edible material to deer or raccoons. Living food sources, such as fruit trees and other live vegetation, shall not be considered as edible material. This section does not apply to veterinarians, city employees, city animal wardens, or county, state or federal game officials who in the course of their duties have deer or raccoons in their custody and/or under their management.Feeding of deer, raccoons, wild turkeys, coyotes, opossum, Canada goose or prohibited animals identified in Section 4-42. SECTION 4. This Ordinance shall take effect fifteen days after its publication. First Reading June 18, 2012 Second Reading July 16, 2012 Date of Publication July 26, 2012 Date Ordinance takes effect August 10. 2012 Reviewed for Administration: Adopted by the City Council July 16, 2012 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney Meeting Date: June 18, 2012 Agenda Item #: 8d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Miscellaneous Licensing and Nuisance Ordinance – 1st Reading RECOMMENDED ACTION: Motion to Adopt First Reading of Ordinance approving Changes to Chapter 8 regarding Businesses and Licenses and Chapter 12 for Nuisance Abatement and Assessment. POLICY CONSIDERATION: Does the Council wish to amend the City Code regarding gas piping and fuel burning equipment, tobacco licensing, and nuisance abatement and assessment section. BACKGROUND: Regular review of the City Code is helpful to keep regulations current and adapt to changing conditions. This group of proposed amendments is intended to provide increased clarity and effectiveness in application of the Code. DISCUSSION: Chapter 8 – Businesses and Licenses • Section 8-116 Gas Piping and Fuel Burning Equipment - Competency cards are a requirement for some trade persons working under a City licensed Mechanical Contractor. The work associated with the installation of fuel burning appliances such as furnaces and boilers requires the installers to possess specific knowledge and skills. However, this work generally presents less of a hazard to the general public than the installation of the gas piping to the fuel burning equipment. Therefore, the installation of these types of fuel burning equipment can safely be performed under the direction and supervision of a licensed Mechanical Contractor who holds a Warm Air or Steam and Hot Water Certificate of Competency for their company. Due to the necessary skills associated with natural gas, the installation of gas piping would continue to require that installers hold a Gas Piping Certificate of Competency Card. The proposed ordinance amendment will eliminate the competency card requirement for fuel burning equipment installers. • Section 8-372 Tobacco License Required - A criminal background check is not currently required for the applicant of a tobacco license. Similar to Massage Therapy and Liquor licensing, a background check performed by the Police Department would be helpful as a requirement of Tobacco sales licensing to determine if the applicant has been convicted of any felony, gross misdemeanor or misdemeanor. At the time of application, the applicant will need to provide a readable copy of a government issued picture identification with current address; and a background check if they have ever been convicted of any felony, gross misdemeanor or misdemeanor; and authorize the city to complete a background check. City Council Meeting of June 18, 2012 (Item No. 8d) Page 2 Subject: Miscellaneous Licensing and Nuisance Ordinance – 1st Reading • Section 8-374 Tobacco Prohibited Sales - Smoking of tobacco products inside tobacco sales shops is currently permitted. The Freedom to Breath provisions amended into the Minnesota Clean Indoor Air Act, during 2007, allows the smoking of tobacco for sampling purposes within tobacco product establishments. While not the intent, this law may allow smoking lounges or rooms to be created unless a city adopts more specific requirements for licensed tobacco establishments. Staff is proposing that the code be amended to not allow any sampling of the tobacco within licensed tobacco shops. The city currently does not have any licensed tobacco shops that would be affected by this change. The City Attorney is recommending the title of the section be changed from Prohibited Sales to Regulations Adopted and adding item (b) to prohibit tobacco sampling. Chapter 12 - Nuisance Abatement and Assessment Sections 12-35 • The city no longer utilizes a health official position which is currently referred to in the Code for Nuisance determination and the abatement process. During a department re- organization in 2009, the health official position was eliminated and the Director of Inspections assumed the duties of the health official. To correctly identify the city official in charge of nuisance abatement and assessment, the term “health official” is proposed to be removed and replaced with Director of Inspections throughout the section. FINANCIAL OR BUDGET CONSIDERATION: No significant expenditure of city resources or increase in fee for services is expected as a result of the proposed ordinance amendments. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. Attachment: Draft of Proposed Ordinance Amendments Prepared by: Brian Hoffman, Director of Inspections Approved by: Tom Harmening, City Manager City Council Meeting of June 18, 2012 (Item No. 8d) Page 3 Subject: Miscellaneous Licensing and Nuisance Ordinance – 1st Reading ORDINANCE NO. ____-12 CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA AN ORDINANCE RELATING TO LICENSING AND INSPECTIONS, AMENDING SECTIONS 8-116, 8-372, 8-374 AND 12-35 OF THE ST. LOUIS PARK CODE THE CITY OF ST. LOUIS PARK DOES ORDAIN: SECTION 1. Section 8-116 of the City Code is hereby amended as follows: Sec. 8-116. Gas piping and fuel burning equipment. Any person installing, repairing or altering gas piping or fuel burning equipment for which a mechanical contractor's license with a gas piping and fuel burning equipment endorsement is required, must have a valid city certificate of competency for gas piping and fuel burning equipment issued to such person. The person must carry the certificate of competency when performing any work, and must present the certificate of competency upon request to any city representative. This requirement is in addition to any or all other licensing requirements and does not eliminate the need for a mechanical contractor's license. SECTION 2. Section 8-372 of the City Code is hereby amended as follows: Sec. 8-372. License required. (a) No person shall sell or offer to sell any tobacco, tobacco product or tobacco related device without first having obtained a license to do so from the city. (b) No license shall be issued for the sale of tobacco, tobacco products or tobacco related devices at any place other than the applicant's place of business. No license shall be issued for a moveable place of business; nor shall any single license be issued for the sale of tobacco, tobacco products or tobacco related devices at more than one place of business. (c) Complete applications shall be reviewed by the city for verification and investigation of the facts set forth in the application, including a criminal background investigation of the applicant. The city may order and conduct such additional investigation as deemed necessary. (d) The city shall make the determination whether to approve or deny the license. Any denial shall be communicated to the applicant in writing, specifying the reasons for denial. The applicant may appeal the denial in accordance with the procedure specified in section 8-36. (e) Complete applications for issuance of annual licenses shall be submitted to the city at least thirty (30) days prior to the expiration of the license. The determination regarding approval or denial of the license renewal shall be communicated to the applicant in writing, specifying the reasons if the application is denied. The applicant may appeal the denial in accordance with the procedure specified in section 8-36. City Council Meeting of June 18, 2012 (Item No. 8d) Page 4 Subject: Miscellaneous Licensing and Nuisance Ordinance – 1st Reading SECTION 3. Section 8-374 of the City Code is hereby amended as follows: Sec. 8-374. Prohibited sales Regulations Adopted. (a) It shall be a violation of this subdivision for any person to sell or offer to sell any tobacco, tobacco product or tobacco related device: (1) To any person under the age of 18 years. (2) By means of any type of vending machine. (3) By means of self-service merchandising whereby the customer does not need to make a verbal or written request to an employee of the licensed premises in order to receive the tobacco, tobacco related product or tobacco related device. All tobacco related products shall be stored behind a counter, or other area, not visible or accessible to customers. (4) Containing opium, morphine, jimson weed, bella donna, strychnos, cocaine, marijuana or other type of deleterious, hallucinogenic or toxic or controlled substance, except nicotine, and not naturally found in tobacco or tobacco products. (5) By any other means or to any other person prohibited by federal, state or other local laws, ordinances or other regulations. (b) Tobacco sampling within an establishment selling any tobacco, tobacco product or tobacco related devices is prohibited. SECTION 4. Section 12-35 of the City Code is hereby amended as follows: Sec. 12-35. Nuisance abatement and assessment. (a) Purpose of section. The purpose of this section is to provide the city with the authority, pursuant to M.S.A. § 429.101, as may be amended from time to time, to remove or eliminate public health or safety hazards from private property and to provide for the collection of unpaid special charges for all or any part of the costs incurred by the city to remove or eliminate the hazards. (b) Notice of need to abate nuisance. Whenever the existence of any nuisance defined in this article, constituting a public health or safety hazard, within any lots or parcels of real estate situated within the city, shall come to the attention of the health official Director of Inspections, the official the Director shall cause an investigation of the reported nuisance. After the investigation, the health official Director of Inspections shall determine whether a nuisance exists. Upon finding a nuisance, the health official Director of Inspections shall prepare a written notice and mail the notice to the owner of the property. The term "owner" shall be defined as the person listed as owner according to the current records of the county auditor. Such notice shall contain the name of the owner, his address (if known), the address of the property containing the nuisance and a description of the nuisance which must be abated at the owner's expense, and the time frame within which the nuisance must be abated as determined in the sole discretion of the health official. In determining the time within which owner must abate the nuisance, the health official Director of Inspections shall consider, among other factors, the following: City Council Meeting of June 18, 2012 (Item No. 8d) Page 5 Subject: Miscellaneous Licensing and Nuisance Ordinance – 1st Reading (1) The severity of the threat to public health and safety; (2) The size or magnitude of the nuisance; and (3) The number of persons affected by the nuisance. The notice shall further state if owner fails to abate the nuisance within the time provided in such notice, the city may enter onto the owner's property for purpose of abating the nuisance. Noncompliance with the required action will result in city action to abate the nuisance the cost of which will subsequently be assessed as a lien against the owner's property. If the owner's address is not known, service of the notice may be made upon a tenant, lessee or owner's agent and shall also be posted upon the property. Where no owner or owner's agent can be found, the city clerk shall cause the notice to be published once in the official city newspaper within ten days of issuance of the notice. If publication is required, the city shall allow an additional ten days from the date of publication for owner to comply with the notice of violation and abatement. (c) Time to respond. The owner shall abate the nuisance, at the owner's expense, within the period of time contained within the notice. In the instance of publication of the notice, the owner shall have ten days following the date of publication of the notice, plus the amount of time provided in the notice to abate the nuisance. The health official Director of Inspections shall cause an inspection of the property containing the nuisance to be made the day after the last day for abatement as stated in the notice or within such other time as may be reasonable and practical. (d) Appeal. The owner shall have a right to appeal the notice as served by presenting the appeal to the city manager within 48 hours of service of the notice or within two days of its publication, excluding weekends and legal holidays. Within 72 hours of presentation of the appeal, the city manager shall meet with the owner and the official to hear the matter. The city manager shall consider the issues and make a final decision within 48 hours following the meeting. The owner shall be served by mail of the manager's decision. The owner may appeal the city manager's decision to the city council. Within ten days of receipt of the mailed decision of the city manager, the owner shall make a request, in writing, to the city manager to be placed on the agenda at the next regularly scheduled city council meeting, to consider the owner's appeal of the city manager's decision. The city council shall consider the appeal and make a final decision. A final decision by the city council is not appealable. (e) Enforcement/abatement. If the owner of the property does not respond to the served, posted or published notice itemizing the nuisance and ordering its abatement, within the given time as specified in such notice, the official Director may order the nuisance condition to be abated by either the city or contracted employees. The cost of abating the nuisance shall be compiled and a resolution prepared containing the name of the owner, the address and legal description of the property containing the nuisance, the costs of abating the nuisance, and a recommendation to assess the property, as a special assessment, for the costs. The assessment proceedings shall be conducted as outlined in M.S.A. § 429.101. Upon its passage, the resolution shall be submitted to the county auditor by November 10 of that year for assessment of the costs as a lien against the property with the real estate taxes. The lien may be collected in a single annual installment, or spread over a period of up to ten equal annual installments, to be determined at the sole discretion of the city council. (f) Payment of assessment. Upon passage by the city council of the resolution of approval for assessment of costs incurred by the city to abate such nuisance, the city clerk shall send a bill for the assessment amount to the owner. The owner may then pay the bill in full prior to its submission to the county auditor. If the owner fails to pay the assessment prior to its submission City Council Meeting of June 18, 2012 (Item No. 8d) Page 6 Subject: Miscellaneous Licensing and Nuisance Ordinance – 1st Reading to the county auditor, the city shall forward the assessment information to the county auditor to create a lien against the owner's real estate as per M.S.A. § 429.101. (g) Expenses allowed. Expenses to be included in the abatement and assessment procedure may include the cost of the abatement and any removal, publication of notice or of any notice of action of the city council, posting and service of notices, departmental costs and expenses including legal fees, allowance for city employee time, overtime and expense of any equipment used. Such costs shall be compiled and prepared for presentation to the city council by the official. SECTION 5. This Ordinance shall take effect fifteen days after its publication. ADOPTED this ______ day of _______________, 2012, by the City Council of the City of St. Louis Park. ATTEST: CITY OF ST. LOUIS PARK ___________________________________ By:________________________________ Nancy Stroth, City Clerk Jeffrey W. Jacobs, Mayor APPROVED AS TO FORM: ___________________________________ City Attorney Meeting Date: June 18, 2012 Agenda Item #: 2 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Storm Water Follow Up – Bass Lake Improvements RECOMMENDED ACTION: This report provides possible improvement options for Bass Lake Preserve to assist with the discussion at the special study session. Staff requests feedback and direction from the Council on the information provided in this report. POLICY CONSIDERATION: Regarding possible Bass Lake improvements: 1. Which Bass Lake improvement option would Council like staff to pursue? a. Do nothing b. Functional Restoration c. Moderate open water improvement (restore / enlarge open water area near outlet) d. Complete open water improvement (create an 80 acre lake) 2. Does Council desire any additional information or discussion regarding on topic? BACKGROUND: History At the March 12, 2012 Study Session staff provided Council follow up information regarding the prioritization and estimated costs of water quality improvement projects for ponds and wetlands. These projects range from minor maintenance to possible major rehabilitation / basin expansions and are aimed at improving water quality (impaired waters); specifically, the basis for the recommended improvements is the removal of suspended solids (sediment) and phosphorous from waters exiting the city. At the end of that discussion, Council requested staff to: 1. provide information on wetlands, the function they perform, and how they are managed in the city 2. classify ponds in the city (public vs. private) and provide information regarding the process and costs associated with treating ponds 3. provide information regarding possible improvements to Bass Lake This report provides information related to the last request above - possible Bass Lake improvements. Bass Lake History There have been many questions asked regarding the history and past conditions of Bass Lake. Jim Vaughan, Environmental Coordinator, researched city and St. Louis Park Historical Society records in an attempt to obtain historical records regarding Bass Lake. Exhibit 1 - Bass Lake Historical Records attached is a compilation of those records. Special Study Session Meeting of June 18, 2012 (Item No. 2) Page 2 Subject: Storm Water Follow Up – Bass Lake Improvements Possible Bass Lake Improvements Based on input obtained at the Council Study Session of March 12, staff developed the following possible Bass Lake improvement strategies for Council discussion and consideration: 1. Do nothing - there is no requirement or mandate to make any improvements to Bass Lake at this time. Staff would expect the water body to slowly continue to fill with sediment to a point where water quality degradation or localized flooding would require respective improvements. 2. Functional Restoration - this proposal is essentially the same as the cleanout that was performed by the city the winter of 1992 - 93. The City’s consultant (Barr Engineering) estimated construction cost for this as stated in the March 12, 2012 Study Session report is $2,913,000. Engineering, wetland mitigation, permitting, and possible contamination costs could possibly increase this estimated cost up to a total project cost of $6,000,000. A project such as this and related funding is currently not included in the City’s capital planning documents (nor for the next two options). 3. Moderate open water improvements (restore / enlarge open water area near outlet) - this would entail restoration of the previous open water areas (as can best be approximated) of Bass Lake. Without an engineering study and evaluation, staff can only project this could cost about twice as much as option 2 or about $8 to $12 million dollars. 4. Complete open water improvement (create an 80 acre lake) - this proposal would be a significant undertaking in both effort and cost. BARR provided us with the following assessment: a. It would be very difficult to obtain permits for such work from the Corp of Eng’rs, DNR, MPCA and Watershed District. b. Assume an 80 acre open water lake with an average depth of 9 feet would require excavation of approximately 1,200,000 cubic yards of materials @ $10.00 /cy = $12,000,000 (includes excavation, haul, and disposal). c. If excavated materials are contaminated, removal and disposal costs could increase from $10.00 /cy up to $60 /cy. Based on other local projects it is likely that 20% of the excavation is contaminated so the excavation and disposal costs would probably be closer to $24,000,000. d. Engineering and Environmental Impact Study and permitting work would likely run $1,000,000 to $1,500,000. e. If a liner is needed, the cost for 130,000 square yards of liner would cost about $5/sy or $650,000. f. If wetland mitigation/replacement is required by the agencies, the likely wetland creation cost, not including the land cost, could cost in the range of $8,000,000. g. In summary, the range of possible cost to excavate and create an 80 acre lake could run between $13,000,000 (assuming no wetland replacement, no contaminated soil, no liner required) to well in excess of $33,000,000 if wetland replacement, contaminated soil disposal, and a liner are required…..which is more likely given current governmental regulations. None of these proposals include any amenities which might also be desirable. The descriptions and costs associated with options 3 and 4 provided above are conceptual guesstimates, but provide a flavor for magnitude and cost of possible improvements. Special Study Session Meeting of June 18, 2012 (Item No. 2) Page 3 Subject: Storm Water Follow Up – Bass Lake Improvements Summary and Next Steps Staff does not feel Option 1 (Do Nothing) is viable long term. If the goal is to maintain the functionality of Bass Lake as a beneficial water body, Option 2 is the most cost effective alternative available and should be evaluated further. Should Council wish to pursue either of the larger improvements as described in Options 3 or 4, staff feels a consultant should be retained for further study and evaluation of the desired improvement. A proposal process with a defined project scope would be utilized to retain a consultant and develop a project development proposal with a better cost assessment than provided herein. Consultant efforts and costs for this work will be significant. As stated in our March Study Session report, due to agency rule changes underway and the MPCA / MCWD TMDL study being conducted, our storm basin CIP planning effort and improvement projects have effectively been put on hold pending final MCWD and MPCA determinations. It is possible our CIP development effort could be started again in 2013 with water quality improvement projects possibly scheduled for 2014 to 2015 depending upon public support, funding availability, and agency (permitting) approvals. Once the agencies complete their rules revisions and the regional TMDL study, staff intends to re-evaluate the BARR study (Exhibit 2 attached) to determine next steps for further development of the storm basin CIP. FINANCIAL OR BUDGET CONSIDERATION: The city’s Storm Water Utility was created during February of 2000 and funds all storm water activities. The major reason for its creation was to provide a financing mechanism for flood mitigation efforts throughout the community. Many millions of dollars were spent as a means to complete this initiative. $3,265,000 in G.O. Revenue Bonds were sold in 2001 to raise capital for these projects. These bonds are still being paid off at the rate of approximately $300,000 per year with final payments scheduled for 2016. In addition to these bond payments, the Storm Water Utility currently provides funding for NPDES required activities, storm water management activities, long term maintenance and rehabilitation of our storm water system, and for the monitoring and evaluation of water quality in our ponds and wetlands. Costs associated with the wetland projects identified in Exhibit 2 - BARR: Storm Basin Rehabilitation and Maintenance Plan have not been considered nor built into our Storm Water Utility charges or revenues. This will need to be done to finance these projects; staff expects utility rate increases will be needed to provide the additional funding needed for these projects. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. Attachments: Exhibit 1 - Bass Lake Historical Records Exhibit 2 - BARR: Storm Basin Rehabilitation and Maintenance Plan Prepared by: Michael P. Rardin, Public Works Director Reviewed by: Scott Brink, City Engineer Scott Anderson, Utilities Superintendent Laura Adler, Engineering Program Coordinator Jim Vaughan, Environmental Coordinator Approved by: Tom Harmening, City Manager Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 4 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 5 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 6 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 7 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 8 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 9 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 10 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 11 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 12 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 13 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 14 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 15 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 16 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 17 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 18 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 19 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 20 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 21 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 22 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 23 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake ImprovementsPage 24 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 25 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 26 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 27 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 28 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 29 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 30 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 31 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 32 Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 33 Project Type ====> Storm Basin Rank per Water Quality Benefit Water Quality Benefit Pond Rehabilitation / Expansion to Meet MPCA Guidelines Rehabilitation of Outlet Control Structure Delta Removal Structure Repair General Debris Cleanup Bass Lake Preserve 1 High $2,913,000 + $25,000 - $35,000 Completed 2009 -Spring/Fall Twin Lakes 2 High No Action Needed $20,000 - $30,000 -Scheduled 2012 Spring/Fall Oregon Pond 3 Moderate $385,000 +No Action Needed Completed 2009 Scheduled 2012 Spring/Fall Oak Pond 4 Moderate $435,000 +TBD Scheduled 2012 Scheduled 2012 Spring/Fall Sumter Pond 5 Moderate $65,000 +TBD Scheduled 2012 -Spring/Fall Browndale Pond 6 Moderate $219,000 + NA - No Outlet Completed 2011 Completed 2011 Spring/Fall Lamplighter Pond 7 Moderate $79,000 +No Action Needed Completed 2009 Scheduled 2012 Spring/Fall Otten Pond 8 Moderate $69,000 +$20,000 - $30,000 -Scheduled 2012 Spring/Fall Twin Lakes Sed Basin 9 Moderate $992,000 +TBD -Completed 2012 Spring/Fall Westdale Sed Basin 10 Moderate $124,000 +$25,000 - $35,000 --Spring/Fall Cedar Manor Lake 11 Moderate $278,000 +TBD Scheduled 2012 Review - TBD Spring/Fall Klodt Pond 12 Moderate No Action Needed TBD TBD Review - TBD Spring/Fall Cobblecrest Lake 13 Moderate No Action Needed No Action Needed -Scheduled 2013 Spring/Fall Shelard Sed Basin 14 Low No Action Needed TBD --Spring/Fall Utah Pond 15 Low No Action Needed $20,000 - $30,000 TBD -Spring/Fall Blackstone Pond 16 Low No Action Needed $20,000 - $30,000 --Spring/Fall Candelstick Pond 17 Low No Action Needed No Action Needed TBD Completed 2011 Spring/Fall Cattail Pond 18 Low No Action Needed TBD TBD -Spring/Fall Amhurst Pond 19 Low No Action Needed $20,000 - $30,000 TBD Review - TBD Spring/Fall South Oak Pond 20 Low No Action Needed No Action Needed Scheduled 2012 Scheduled 2013 Spring/Fall Westling Pond 21 Low No Action Needed No Action Needed -Completed 2011 Spring/Fall Victoria Lake 22 Low No Action Needed No Action Needed Completed 2010 Scheduled 2012 Spring/Fall Kilmer Pond 23 Low No Action Needed TBD Completed 2009 Scheduled 2013 Spring/Fall Wolfe Lake 24 Low No Action Needed TBD TBD Completed 2011 Spring/Fall Hannon Lake 25 Low No Action Needed NA - No Outlet TBD Scheduled 2013 Spring/Fall Westwood Lake 26 Low No Action Needed No Action Needed --Spring/Fall Estimated Costs $5,460,000 1 $470,000 2 $8,500 3 $35,000 4 - St. Louis Park Storm Basin Rehabilitation and Maintenance Plan March 2012 5 - Routine maintenance of existing infrastructure budgeted for in the Storm Water Budget. Necessary to maintain existing assets. 6 - Suggested capital improvements aimed at improving water quality based on current MPCA guidelines. Aesthetic improvements or water treatment initiatives have not been included. Routine Maintenance 5Capital Improvement 6 1 - The costs above do not include engineering design, wetland mitigation, permitting, or easement costs. Total project costs could easily be double these construction estimates. 3 - Estimated average annual cost. This work is contracted out. 4 - Estimated cost of materials. Most of this work will be completed by Utility staff. 2 - Estimated cost of identified improvements along with future studies and TBD improvements. Notes: Special Study Session Meeting of June 18, 2012 (Item No. 2) Subject: Storm Water Follow Up – Bass Lake Improvements Page 34